THROUGH SECOND QUARTER FY 2025-26
TRANSACTION PRIVILEGE TAX: REVENUES
QUARTERLY REVENUE RECEIPTS VS. BUDGET AND PRIOR YEAR
1,000,000 1,200,000
Year-To-Date 2025-26 Variances
OverallPerformance: ActualTPTrevenuesthroughNovemberreportinginFY2025-26aremorethanbudget,withasurplusof $460,526 or 10.3%. Currently, every category except for other is performing better than budget.
TheactualYTDis $53,002 morethantheFY2024-25actualsmainlyduetohigherthanprioryearrestaurant/bar,foodforhome consumption, and online sales offset by decreases in retail, construction, commercial rental, utilities and other.
TheTPTcollectionsforthefirstfivemonthsaretrendingpositive.Itisnecessarytonotethattheseamountsarefortaxreportsfiled through the November reporting period.
GENERAL FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
TransactionPrivilegeTax: Revenueistrendingslightlyabovebudgetedprojections,primarilyduetotimingoftherevenues received from the State (see detailed TPT section for more information based upon actual reporting periods). Licenses & Permits: Above budget, due to increased permit activity compared to prior years.
IntergovernmentalRevenues: Abovebudget,primarilyattributedtotheVehicleLicenseTaxandgrants,offsetbyaslightdecrease in State Shared TPT related to the San Tan Valley incorporation and the State Income Tax decrease from the flat tax change. Interest: Below budget, due to fewer funds invested in the Local Government Investment Pool (LGIP) and lower interest rates.
OverallPerformance: ActualrevenuesthroughthesecondquarterofFY2025-26areslightlyabovebudget,withasurplusof $243,122 or 3.5%.TheactualYTDis $109,024 lessthantheFY2024-25actualsmainlyduetotimingdifferenceofTPTreceivedfrom theStateandaplanneddecreaseintheTown'sshareofStateIncomeTaxoffsetbyincreasedVehicleLicenseTaxandmorelicenses and permits activity.
GENERAL FUND ACTIVITY: EXPENDITURES BY DEPARTMENT
QUARTERLY EXPENDITURES VS. BUDGET
1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000
Police
DepartmentBudgets: Expendituresforallgeneralfunddepartmentsaretrendingbelowbudgetatthecloseofthesecondquarter. Thisisprimarilyduetocontingencyfunds,long-term,one-timeprojectsthatareinthebeginningstages;zoningcodeupdate, engineeringcodeupdate,landscapedesign/planning,andtimingofvarioustechnologyupgrades.PublicWorksistrendingover budgetforthesecondquarterwhichisprimarilyattributedtothewaterexpendituresinParksMaintenanceduetohigher temperatures and drier weather during the winter months.
OverallPerformance: ActualexpendituresthroughthesecondquarterofFY2025-26areunderbudget,withapositivevarianceof $1,007,321 or 11.2%. The actual YTD is $81,931 less than the FY 2024-25 actuals.
GENERAL FUND ACTIVITY: EXPENDITURES BY TYPE
QUARTERLY EXPENDITURES VS. BUDGET
1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000
Personnel: Belowbudget,duetostaffingvacanciesinDevelopmentServices,Police,TownManager,andPublicWorks,aswellas less pro-tem Municipal Court coverage.
Operating: Below budget, due to the timing of repairs and maintenance, legal services, and other professional services. One-TimeOperating: Belowbudget,duetolong-termone-timeprojects;zoningcodeupdate,landscapedesign/planning,and various technology upgrades.
Contingency: Belowbudget,nocontingencyfundshavebeenusedtodate.However,itisimportanttonotethat$197,200of contingencyfundshavebeencommittedfortheHighlandTownhomessewerandwatermainextensionsthatisnotyetincludedin the actuals above.
OverallPerformance: ActualexpendituresthroughthesecondquarterofFY2025-26areunderbudget,withapositivevarianceof $1,007,321 or 11.2%. The actual YTD is $81,931 less than the FY 2024-25 actuals.
HIGHWAY USERS REVENUE FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Year-To-Date 2025-26 Variances
HighwayUsersRevenue: Belowbudget,duetolowerthananticipateddistributionsfromtheStaterelatedtotheSanTanValley incorporation.
Permits: Above budget, due to slightly higher permit activity than estimates. Miscellaneous: Above budget, attributed to surplus property disposal.
Interest: Above budget, due to slightly more funds invested in the Local Government Investment Pool (LGIP) than anticipated.
OverallPerformance: ActualrevenuesthroughthesecondquarterofFY2025-26areclosetobudget,withashortfallof $28,467 or -4.6%. The actual YTD is $31,119 more than the FY 2024-25 actuals mainly due to increased Highway Users Revenue from the State.
HIGHWAY USERS REVENUE FUND ACTIVITY: EXPENDITURES
QUARTERLY EXPENDITURES VS. BUDGET
Year-To-Date 2025-26 Variances
Personnel: Below budget, due to staffing vacancies in Public Works - Streets.
Operating: Below budget, due to the timing of contract and support services.
HWY 89 Maintenance: Below budget, due to timing of weed control and monthly landscaping maintenance costs.
Road Materials: Below budget, due to the timing of when various equipment (such as guardrails) is needed.
OverallPerformance: ActualexpendituresthroughthesecondquarterofFY2025-26areunderbudget,withapositivevarianceof $104,376 or 14.8%.TheactualYTDis $31,076 morethantheFY2024-25actualsdueprimarilytohigherinterfundtransfersand personnel expenses.
WATER FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Year-To-Date 2025-26 Variances
WaterServiceFees: Abovebudget,duetoslightlyhigherthananticipatedwaterservicefeesfromhighertemperaturesandlower precipitation.
Fill Station Receipts: Above budget, due to change in fill station fee structure.
Water System Buy-In Fees: Below budget, attributed to slightly less than anticipated new home construction permits. Miscellaneous: Above budget, attributed to greater than anticipated water meter fees, late fees, and service fees.
OverallPerformance: ActualrevenuesthroughthesecondquarterofFY2025-26haveexceededbudgetexpectations,witha surplusof $110,161 or 18.0%.TheactualYTDis $186,009 morethantheFY2024-25actualsmainlyduetoanincreaseinwater servicefeesintheamountof$67,715(warmertemperaturesandtheratestructureincreasesapprovedinDecember2023 contributedtothisincrease)andanincreaseinfillstationfeesintheamountof$89,292(newfeestructurethatwaseffectiveJuly 1, 2025).
WATER FUND ACTIVITY: EXPENSES
QUARTERLY EXPENSES VS. BUDGET
Year-To-Date 2025-26 Variances
Personnel: Below budget, due to the allocation split between sewer and water.
Operating: Below budget, due to the timing and need of system maintenance and repairs.
Contingency: Below budget, no contingency funds have been used to date.
OverallPerformance: ActualexpensesforthesecondquarterofFY2025-26areunderbudget,withapositivevarianceof $48,762 or 12.3%.TheactualYTDis $59,576 morethantheFY2024-25actualsmainlyduetothetimingofadministrativeindirecttransfers, slightly higher personnel costs, and the principal portion of debt service offset by a decrease in one-time operating expenses.
WASTEWATER FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Total (Excludes Grants)582,366
Year-To-Date 2025-26 Variances
SewerServiceFees: Belowbudget,duetoslightlylowerthananticipatedsewerservicefees.Thisisa1.1%differenceandalthough minimal, staff is closely watching the revenues.
SewerSystemBuy-InFees: Belowbudget,duetoslightlyfewerthananticipatednewhomeconstructionpermitsduringthesecond quarter, offsetting the surplus from the first quarter.
Miscellaneous: Below budget, attributed primarily to lower than anticipated late fees and service fees. Interest: Above budget, attributed to greater interest than anticipated in the WIFA reserve fund.
OverallPerformance: ActualrevenuesthroughthesecondquarterofFY2025-26areclosetobudget,withashortageof $8,702 or -0.7%,primarilyduetolowerthanexpectedbuy-infeesandsewerservicefees,offsetbyaslightsurplusininterest.TheactualYTD is $105,399 morethantheFY2024-25actualsmainlyduetoanincreaseinsewerservicefeesintheamountof$84,638(more customersandtheratestructureincreasesapprovedinDecember2023contributedtothisincreaseaswellasadditionalchanges forRVandmobilehomeparkspacesthatbecameeffectiveJuly1,2025),anincreaseinsewersystembuy-infeesintheamountof $26,180(slightlylessbuy-infeeswerereceivedduringtheprioryear),offsetbylowerserviceadministrativefeescollectedand interest.
WASTEWATER FUND ACTIVITY: EXPENSES
QUARTERLY EXPENSES VS. BUDGET
2025-26 Actual Expenses 2025-26 Budget
Year-To-Date 2025-26 Variances
Personnel: Above budget, due to the allocation split between sewer and water. Operating: Below budget, due to the timing of equipment repairs and maintenance. Contingency: Below budget, no contingency funds have been used to date.
OverallPerformance: ActualexpensesthroughthesecondquarterofFY2025-26areunderbudget,withapositivevarianceof $137,060 or 9.8%.TheactualYTDis $128,824 morethantheFY2024-25actualsmainlyduetothetimingofinternalindirect transfersintheamountof$95,000tothegeneralfund,higherpersonnelservices(duetoCOLA/meritadjustments),andan increaseintheprincipalportionofdebtserviceoffsetbyaslightdecreaseinoperatingexpensesduetomaintenance,chemicals, and testing timing.
CAPITAL: VEHICLES/MACHINERY/EQUIPMENT
CAPITAL: PROJECTS
QUARTERLY EXPENDITURES VS. BUDGET
1 Only will move forward once funding source is identified (grant or loan).
2 Only will move forward once funding source is identified (program income or contribution). 1
FUND HEALTH: CASH BALANCES BY FUND
QUARTERLY CASH BALANCE CHANGES
Beginning Cash Balance Quarter 1 Quarter 2 Quarter 3 Quarter 4
(2,000,000)2,000,000 4,000,000 6,000,000 8,000,000 10,000,000
General Fund
Special Revenue Funds Capital Asset Replacement Fund
Fund
Court Fund
Grant Fund
Highway User Revenue Fund
Police Impoundment Fee Fund
CVSLID
Del Sol MID
Debt Service Funds
Revenue Bonds Fund
Capital Project Funds
General CIP Fund
Streets CIP Fund
ENTERPRISE FUNDS
Wastewater Fund
Wastewater CIP Fund
Water Fund
Water CIP Fund
623,253 (260,772)
