To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Trish Muller, CPA, Finance Director
Title
Update: Third Quarter Financial Review, Period Ending September 30, 2026
Body
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Executive Summary
The following discussion and financial information reflect the positive financial condition of the Town and highlights the continued focus on strategic priorities established by Town Council. Financial reporting for the Town takes a team effort between Finance, Department Heads, and staff. Ongoing reporting keeps departments informed of potential revenue shortfalls that may require budget adjustments.
As demonstrated by the following information, departments continue to manage Town finances efficiently and responsibly while advancing community priorities. The overall financial position of the Town remains positive with all funds expected to be on track for the year.
Some highlights contained in this report include:
• Gross sales tax revenue is up 5.5 percent through September compared to 2025
• General Fund expenditures are 18 percent below the year-to-date budget for 2026, largely due to the timing of information technology and public safety expense, and projects such as trail improvements
• Capital expenditure represents 55 percent, or $343.3 million, of the amended 2026 budget for the Town; through the third quarter of 2026, $121.9 million has been expended
• Development activity for single family permits is trending below 2025 year to date, and there have been no multi-family permits issued in 2026, both permit types are expected to remain below budget for the rest of 2026
The financial information in this report includes:
• Highlights of seasonally adjusted year to date revenue and expenditures including financial summaries by major category for each Town fund
• Status updates related to community priorities
• Discussion and financial summaries by major category for each fund
Incorporation of the second amendment to the 2026 budget as approved by Town Council
Proposed Motion
This memo is intended for discussion purposes only.
Attachments
Attachment A: 2026 Quarter Three Financial Reports
• Schedule AA - Townwide Summary
• Schedule A - General Fund
• Schedule B - Development Services Fund
• Schedule C - Water Fund
• Schedule D - Water Resources Fund
• Schedule E - Stormwater Fund
• Schedule F - Wastewater Fund
• Schedule G - Transportation Fund
• Schedule H - Transportation Capital Fund
• Schedule I - Fleet Services Fund
• Schedule J - Fire Capital Fund
• Schedule K - Police Capital Fund
• Schedule L - Police Forfeiture Fund
• Schedule M - Parks and Recreation Capital Fund
• Schedule N - Conservation Trust Fund
• Schedule O - Lodging Tax Fund
• Schedule P - Community Center Fund
• Schedule Q - Golf Course Fund
• Schedule R - Economic Development Fund
• Schedule S - Downtown Development TIF Fund
• Schedule T - Philip S. Miller Trust Fund
• Schedule U - Public Art Fund
• Schedule V - Municipal Facilities Capital Fund
• Schedule W - General Long Term Planning Fund
• Schedule X - Employee Benefits Fund
• Schedule Y - Parking Fund
• Schedule Z - Tabor Fund
• Schedule AB - Public Safety Fund
• Schedule AC - Open Space Fund
Attachment B: Sales Tax Collections by Category and Geographical Area
Attachment C: Investment Summary