Council approves FY24-25 closeouts and carryovers; finance director warns of upcoming note renewals

The City Council and Board of Finance approved motions to close out the 2024–25 fiscal year, authorize fund carryovers into 2025–26 and make supplemental appropriations for the Board of Education.

Councilors voted to approve transfers totaling $2,477,704 within the general fund to close out fiscal year 24–25 and approved carryovers from FY24–25 to FY25–26 in both the general fund and the Community Development Block Grant fund. The council also approved an additional appropriation of $5,830,000 within the general fund for the Board of Education as of June 30, 2025.

Diane (Finance Director) briefed the council on revenue trends and short-term borrowing. "We have $35,000,000 in short term notes that come due in October," Diane said, and she explained staff plans to roll those notes and assess permanent financing timing. Diane said staff had been re‑running cash flow and now expected potential new note issuance in the range of $78 million to $80 million, but that lower interest rates could ease interest expense when permanent financing occurs.

Diane summarized revenue indicators: motor vehicle, real estate and personal property tax receipts were "coming in very consistent" and slightly up year‑over‑year; building permit revenue was behind last year and reported at "13.1%" of budget at the date of the report. She noted investment income collected through July was $153,000 compared with $178,000 at the same time last year.

Councilors approved several smaller transfers and appropriations intended to finance equipment purchases for the fire and parks departments, sinking fund transfers, and a Board of Education transfer of $116,000 from contingency to purchase a cybersecurity product described as "Darktrace." The actions passed by voice vote and were recorded as carried.

The finance director reminded the council that the city has a scheduled rating review on Oct. 2 and that some projects planned for bond or note financing include a new Northeast Middle School, Green Hills work, Page Park, a fire station and a possible senior center project; Diane identified dollar estimates for several projects to illustrate magnitude but noted bids and final amounts remain subject to change.

These motions were approved by the council; councilors did not request additional public hearings on the carryovers or the BOE appropriation during the meeting.