Council authorizes treasurer to correct accounting entries for CDBG and public safety funds

Chip Stearns (city treasurer) briefed the council on Sept. 9 about two funds that had accumulated residual accounting balances because reimbursements and expenditures had at times been recorded in different funds. Stearns asked the council to authorize an accounting adjustment to relieve the general fund of an obligation that does not reflect actual cash balances.

Stearns explained the issue using the Stone Garden reimbursement as an example: at times the state reimbursement had been recorded to the public safety fund rather than booked to the general fund, while related expenditures had been paid from the general fund. "We have two funds that are basically pass through funds that over a number of years have seen revenue go into them and the expenses go out in some other fund," he said, and presented the CDBG fund (No. 5) and the public safety fund (No. 6) as the accounts to be adjusted.

The council moved and seconded a motion to authorize the city treasurer to make the accounting adjustments; the motion carried on an aye/nay voice vote with no recorded dissent in the transcript. Stearns and a council member emphasized that the adjustment does not involve closing bank accounts or physically moving cash—"This is simply an accounting procedure," he said.

Council members said the financial task force had reviewed the matter and described it as an accounting cleanup rather than a cash reallocation. The treasurer and finance staff said they will present additional balance‑sheet and year‑to‑date budget reviews at a follow‑up council meeting next week as they continue to reconcile FY2025 records.