Finance director reports $22M on hand, banking RFPs narrowed and tax budget due to county

The city had a little over $22 million in combined funds at the end of August, the finance director told the Finance Committee, and roughly $21 million of that total was invested in short- or long-term instruments at an average weighted yield of 4.433%.

Key numbers: The finance director said the general fund balance was $12,800,000, of which $11,000,000 was unencumbered; $5.8 million of the total $22 million was encumbered for outstanding purchase orders, leaving an unencumbered combined balance the director reported as about $16,700,000. The director also said about 99% of property-tax receipts for the year are in, and income-tax collections are at about 69.5% of the annual forecast (the city had budgeted to be roughly 67% through eight months), representing year-to-date income-tax receipts up just under 5% over the prior year.

Enterprise funds and forecasting: Water revenue was reported at about 72% of forecast and sewer revenue at about 71.5% of forecast. The finance director said the city typically forecasts flat revenue year to year unless a rate change is anticipated and noted the 2026 budgeting process has begun, including department-level capital and operating requests.

Banking proposals and procurement: The finance director said six banks responded to the treasury services request for proposals; two banks did not respond and the pool has been narrowed to three finalists, including the incumbent. The director said the evaluation is considering local branch access and pricing and that one finalist will be scheduled to demonstrate treasury software before staff recommends a choice.

Tax budget and deadlines: The finance director said the tax budget will be submitted to the budget commission at the auditor and treasurer's office in Seneca County and that, if the council does not approve the tax budget at this meeting, staff would request suspension of the three-reading rule at the next council meeting because the tax budget technically should be returned to the budget commission by the end of the month.

Quotes: The finance director summarized the holdings: “The banking report shows that we had a little over $22,000,000 at the August. Just so everybody is aware, 21,000,000 of that is all invested, either in short or long term. And the average weighted average on that 21,000,000 is 4.433%.” Later, the director described the banking RFPs: “I did end up with 6 proposals overall… I have not, I've narrowed it down to, to possibly a third bank that we can have come in demonstrate their treasury software to us.”

Next steps: Staff will continue finalist demonstrations and prepare the tax budget and appropriation schedules for council consideration; staff asked the committee to be prepared to suspend three readings at the next meeting if necessary to meet county deadlines.

Ending: No formal committee action was taken on the tax budget or bank selection at the meeting; both items remain staff work items pending further demonstrations and council action.