Town’s July report shows $1.28M cash, projected fund balance decline; personnel costs top expense

Pinetop Lakeside’s financial consultants presented the July 2025 report to the Town Council on Tuesday, showing general fund cash of $1,279,000 and a projected use of fund balance through the fiscal year. Sarah Simonton and Gabe Muldorf of the James Vincent Group told the council that sales tax was down about 6.2% year over year in July, and that the town’s cash position declined by about $133,000 from June to July — a timing effect the consultants said was partly project-driven.

“Personnel is our highest expense at 72.5%,” Muldorf said, adding that administrative and operational costs explained most remaining expenditures. He recommended that council and staff prioritize the town’s financial health and follow through on upcoming budget work to address projected shortfalls. The presentation included a 12-month cash-flow chart showing a projected year-end general fund balance of about $881,000 if current budget assumptions hold.

Gabe said a principal driver of the variance was one-time and annual payments (for example, magistrate and league dues), and noted timing effects related to capital projects and HEERF-funded work. He highlighted that street maintenance and drainage projects had contributed to the variance but were project-based rather than ongoing overspending.

Council members sought clarification on monthly “cash burn” and whether the town’s July decline represented a recurring problem. Consultants said the July-to-June drop reflected timing of payments, but that the annual projection still showed a drawdown of fund balance. Council and staff discussed next steps including a special meeting to focus on the town’s fiscal strategy.

Council moved to approve the July 2025 financial report as presented; the motion carried unanimously.