Finance director presents first quarterly financial report; grants transfers flagged for correction

Finance Director Anne presented Fairview's first quarterly financial report for the period ending Dec. 31, 2024, to the council on March 19.

All‑funds summary: the city began the quarter with a combined beginning fund balance of about $19.8 million, recorded roughly $5.0 million in quarter revenues and $3.3 million in quarter expenses, and closed the quarter with approximately $21.3 million. The General Fund showed a large increase in the quarter because property tax receipts are concentrated in November/December. Anne emphasized that the numbers are unaudited and likely will be adjusted as finance staff complete ledger reconciliations.

Fund highlights and issues: - General Fund: fund balance increased sharply due to property tax receipts tied to the November 15 collection date; many departments were under budget on payroll during the quarter because positions remained vacant. - Recreation Fund: revenues for the quarter trailed budget and payroll increased due to grant‑funded programmatic staffing in the recreation fund. - Grants & Capital Projects Fund: staff flagged a negative fund balance driven by transfers that have not yet been recorded (approximately $3.6 million in transfers anticipated for the biennium). Anne said staff will research and post the necessary transfers so that the fund position is corrected. - Building, Street, Water, Sewer and Stormwater funds: generally healthy fund balances; enterprise funds' revenues covered operating expenses for the quarter. - Equipment replacement/facilities maintenance funds: equipment purchases (backhoe, two trucks, sander) and building maintenance charges were processed through these funds as planned.

Debt and system development charge summaries were included: the finance report listed outstanding debt service schedules and per‑capita debt figures for the city and urban renewal agency. Anne said the report is unaudited and will be refined in future quarters; she also proposed the FY2025–26 budget calendar and recommended budget committee meetings on the first three Mondays in May, with the first meeting including Oregon budget law training for council members and presentation of the proposed budget.

Councilors thanked staff for the detail and asked follow‑up questions about transfers into the grants fund and the timing of budget meetings. Anne and the city manager said staff will reconcile transfers, produce a corrected fund balance for the grants fund and circulate budget materials prior to the May budget committee meetings.