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Clayton adopts FY2024 fourth-quarter budget amendment; investment mark‑to‑market and use‑tax receipts drive variances
Summary
The board adopted an annual, reconciliatory fourth‑quarter budget amendment that reflected higher-than-budgeted investment values and variable sales/use tax receipts; staff said many capital purchases were deferred into FY2025 and salary savings came from vacancies.
The Board of Aldermen on Feb. 25 adopted the city’s FY2024 fourth-quarter budget amendment (Ordinance 7061), a year-end reconciliation of revenues and expenditures as of Sept. 30, 2024.
City staff and Finance Director Karen Dilber explained the amendment covers a reconciliation of actual revenues and expenses against the adopted FY2024 budget and is used for audit purposes. The largest positive variance in FY2024 resulted from investment mark‑to‑market accounting and stronger-than-budgeted interest income; city staff noted new accounting treatment requires investments be reflected at market value at fiscal year-end. Staff said those mark-to-market gains would only be realized if investments were sold at Sept. 30; they do not represent additional cash available to spend without selling assets. Sales tax and use-tax collections were also above budget in some categories; the capital improvement fund showed a notable use‑tax variance linked to online and out‑of‑state purchases.
On the expenditure side, staff said salary-line savings resulted largely from vacancies and turnover; several capital and equipment purchases (public-safety vehicles, bucket trucks, specialty equipment) were deferred because of lead times or delayed procurement and will be rolled into FY2025. The amendment reflects those timing differences rather than permanent savings.
The ordinance received unanimous consent for immediate consideration and was adopted. Staff said the FY2024 audited figures will be completed, and the FY2025 budget process will use the amended actuals as its baseline.
Next steps: Auditors will complete the FY2024 audit using the amended figures; staff will roll forward deferred capital items into FY2025 and present FY2026 budget projections using the amended actuals as a baseline.
