Greeley finance staff report tighter revenue outlook, grant cancellations and audit schedule

City finance staff gave a quarter‑one briefing that showed a mixed picture: cash and investments are higher than budgeted and producing interest income, but sales‑tax collections and new‑construction revenue are tracking below the 2025 budget and several anticipated grant awards were cancelled or revoked.

Robert Miller, division treasurer, told the council the city had roughly $346 million in cash and investments as of March 31 and recognized $3.8 million in interest earnings year‑to‑date, with a projected total interest income above $13 million for 2025. At the same time, Miller said sales‑tax collections are running about 4% below 2024 levels in the early collections and that new construction‑related revenues may be about $20 million below the 2025 budget projection; if current trends continue, he said available sales and use tax resources could be $5.1 million below budget for the year.

Stacy Swanson, grants and special revenues manager, reported recent federal policy changes have revoked or removed funding for several large grant applications. She said a 2023 Tree Canopy grant of $689,134 had $459,422 revoked; the Forestry Division obtained a Colorado State Forest Service grant covering $355,000 of the shortfall, leaving an approximate $100,000 gap. Swanson also said two FEMA BRIC applications — a Bellevue/Gold Hill pipeline water project (~$13.8 million) and a Twelfth Street stormwater outfall project (~$20.7 million) — were forfeited when FEMA’s application platform and programs changed, creating about $34.5 million in potential award losses; departments are pursuing alternate funding avenues.

On audits, Tyra (finance) and the finance team said staff are working with external auditors (Plante Moran) and will request a standard extension for the city’s annual comprehensive financial report (ACFR). The team expects to issue audited financial statements to the state auditor by July 31, 2025, and the single audit to the federal clearinghouse by September 30, 2025; staff said the departure of the accounting manager in March has required internal reallocation of responsibilities and daily meetings with auditors to hit deadlines.

Miller emphasized that contingency and carryover funds set aside in the 2025 budget—$4.8 million in a revenue stabilization reserve and about $11.1 million in carryover from 2024—mean the city can operate within the adopted 2025 budget even if trends continue. Councilors asked about lost grant funding and the stormwater program and were told the department will continue to pursue grants and proceed with planned projects, adjusting the bonding schedule to align with cash flows.

No formal council action was taken at the briefing; staff will return with more detailed budget implications during the 2026 budget process.