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Finance director presents preliminary FY24‑25 fourth‑quarter results; city fund balances stronger than earlier estimates
Summary
City finance staff presented a preliminary fourth‑quarter report for fiscal year 2024–25 showing revenues and expenditures below amended budgets and a reduced planned draw from fund balance compared with earlier estimates; major capital projects and grant timing accounted for much of the variance.
Finance Director Kim (last name not specified) presented a preliminary fourth‑quarter financial report to the Alpena City Council on Aug. 4, covering fiscal year 2024–25 as of June 30.
The report is preliminary, the director said, and still requires accruals and audit adjustments; an audit is expected in October. The city’s amended general fund revenue budget was about $14.1 million with recorded revenues of roughly $12.2 million (about 87% of the amended budget) at June 30; staff said a revenue‑sharing payment received in August will be accrued back to June 30 and will increase revenues.
On the expenditure side, the amended budget totaled roughly $14.6 million and expenditures recorded were about $12.6 million (about 86.7% of the amended budget). The director said payroll accruals and incomplete capital projects explain much of the variance.
Specific variances noted included reimbursement shortfalls for blight removal (about $113,000 below budget) and delays or carryovers on recreation and capital grants that reduced revenue recognition in FY25. Transfers in and out were highlighted: transfers in from ARPA and other funds had timing differences and the Marina Fund showed a negative cash position at June 30 that staff said they will remedy through transfers and expected grant proceeds.
The water fund’s book balance had fallen compared with the prior year because of the Clear Well project, but the director reported the second half of a $3 million clear‑well grant arrived in early August, which will restore the fund balance and help with bond financing plans. The city’s retiree and pension investment market values increased between March 31 and June 30, while book values reported reflect accounting balances.
Council voted to receive and file the finance director’s report.
Sources: Presentation by finance director to Alpena City Council, Aug. 4, 2025; director’s slide deck and council action to receive and file.
