26-20 : Fiscal Year 2025 - 2026 First Quarter GAP Report

This report analyzes the Fiscal Year 2025-2026 First Quarter Gap Report prepared by the Administration. The Administration projects a budgetary deficit of $2,295,078. However, the Comptroller's office projects a significantly larger deficit of $42,751,725. This figure could increase to $80,251,725 if budgeted revenues from Tribal Compact ($11,000,000) and Sale of Land and Buildings ($26,500,000) are not collected.

Key Discrepancies:

• Revenue Projections: The Comptroller's office estimates net revenue to be $20,981,347 lower than the Administration's projection, citing lower-than-budgeted revenues in Occupancy Tax, Intergovernmental, Service Charges, Interest, and Miscellaneous categories.
• Expenditure Projections: The Comptroller projects total expenditures and transfers to exceed the Administration's forecast by $19.5 million, primarily due to under-budgeted Overtime, Fringe Benefits, Pension, and Legal Settlements.

Fund Balance Concerns: The City is projected to be unable to fully fund its Restricted, Committed, or Available fund balances, which have historically served as a financial cushion. The Available Fund Balance is not in compliance with the City's Fund Balance Policy, which requires a minimum of thirty (30) days of prior year expenditures to be set aside. The Administration is required to submit a plan to restore compliance.

The Comptroller's office notes that historical trends are not always precise predictors and they may not be privy to all internal budgetary decisions. The report is signed by City Comptroller Barbara Miller Williams and dated December 24, 2025.