New London finance director says city finances broadly on track; ARPA nearly spent, payroll position open

Judy, New London finance director, told the finance committee that the city is roughly 25% through the fiscal year and that revenues and expenditures are “about the same percentage wise,” with several line items front-loaded early in the year.

The report, delivered during the finance director’s monthly update, described spending and revenue timing that officials said leaves the city broadly on track while several projects and reporting deadlines remain. Judy said the city has spent $699,409 in American Rescue Plan Act (ARPA) funds on a downtown project and expects the remaining $42,819 of ARPA money to be used on the Oshkosh Street project.

Judy said, “We are 25% of our way through the year,” and explained that some budget lines are above that percentage because of annual or quarterly payments: insurance was at about 64% because most premiums are paid in January, workers’ compensation is paid quarterly and debt service showed 76% because many debt payments fall in the first three months of the year.

On the revenue side, Judy said there is no single expected percentage because collections are seasonal: property taxes are collected in January–February and again at settlement in August, highway aids are quarterly and library aids semiannually. She noted the city has collected about $63,000 in interest to date.

Judy described assigned and unassigned fund balances, saying she did not change the year-end designations and that the unassigned fund balance will be updated after the city’s audit is completed. “Right now, it’s unaudited,” she said.

On bonding and other transactions, Judy reported that the city completed revenue bonding tied to Eller's and that the proceeds arrived in the bank the same day; she said she transferred the bond proceeds to the utility account after receipt. She also said two projects from a 2023 bonding package remain to be completed and that a $500,000 library donation remains in reserve.

Judy listed several upcoming reporting tasks and administrative items: she filed expenditure-restraint information with the state (a recurring requirement), submitted ARPA reporting to the U.S. Department of the Treasury, continues to work with the auditors on the 2024 year-end financials, and must prepare the state financial report that is due mid-month.

She also said the finance office is short-staffed: the human-resources payroll specialist position is open, applications close that night and she believed the office had received more than 30 applications. Judy said staff are picking up duties while the vacancy is being filled and that hiring could take “at least a month or two.”

Procedural items: the committee approved the meeting agenda and approved the April 2 meeting minutes; there were no public comments. The committee adjourned after Judy’s report.

The finance director and committee identified several next steps: complete the city audit so fund balances can be finalized, spend the remaining ARPA funds on the Oshkosh Street project as indicated, complete the remaining bonded projects from 2023 and fill the payroll specialist vacancy. The finance director flagged that timely state and federal reporting is required to avoid penalties.

(For transparency: direct quotes and figures in this report come from the finance director’s presentation to the committee.)