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Board of Finance approves year-end transfers, preserves about $1.45M of fund balance; vehicle replacement transfer sent to council
Summary
The city Board of Finance on Sept. 16 approved year-end budget transfers for FY24–25 and FY25–26 that increase year-end transfers by $560,756, leaving roughly $1,451,000 of a $3.9 million fund-balance appropriation unspent. The board also approved a $601,976 vehicle-replacement transfer contingent on city council approval.
The Board of Finance approved year-end budget amendments and transfer requests on Sept. 16, 2025, authorizing $560,756 in transfers for fiscal year 2024–25 and accepting related FY2025–26 adjustments; the board also approved a separate $601,976 transfer for vehicle replacement contingent on city council approval. The actions allow finance staff to complete year-end closeout and submit the trial balance to auditors by the Sept. 19 deadline.
Why it matters: The transfers change how much of a previously appropriated $3.9 million from fund balance is used to balance FY24–25. After the approved transfers, the board reported the expected use of fund balance would be roughly $2.4 million, leaving about $1,451,000 of the original $3.9 million appropriation in the general fund.
The board’s staff presented year-end figures that showed projected expenses of $147,040,009.87 and an expense-over-revenue shortfall of $1,888,153 for FY24–25. Board members discussed that the $560,756 in transfers primarily reallocate surpluses from capital projects and like-kind line items—building maintenance surpluses moved to capital-reserve accounts, guide-rail work surpluses moved into street capital projects, and funds meant to advance public-works projects including park improvements, levee and drainage work, and stormwater repairs.
Board members and finance staff emphasized the budgeting strategy used over recent years: avoid spending lines that were not budgeted and return surpluses to the general fund when appropriate. The board noted that earlier decisions—such as a Board of Education choice to retain a premium cost-share totaling $2,100,000—affected the city’s need to use fund balance in FY24–25.
Separately, the board approved a transfer request of $601,976 for vehicle replacement submitted by Public Works Director Raymond Drew (dated 07/15/2025). The board’s motion to approve that transfer includes the condition that city council must also approve the transfer; the board voted to forward the request with that contingency.
The approval authorizes the comptroller’s office and deputy comptroller to proceed with year-end closeout and the auditors’ trial-balance submission. Finance staff told the board they expect to finalize and send the trial balance by the Sept. 19 deadline to support the external audit.
Board members thanked department heads and the finance office for identifying surpluses and limiting spending late in FY24–25 so surpluses could be redirected into capital and reserve accounts.
Looking ahead, the board noted similar fund-balance questions will recur during the FY26 budget process as the city implements additional grand-list adjustments and other recurring pressures on revenues and expenditures.
