City officials flag possible $700,000 deferred grant hit and parking disputes as departments report

Heather, the city's finance director, told the City Council that the transition to new financial software and the timing of grant reimbursements left the city with an estimated unrestricted fund balance of about $1.9 million for 2024 and a roughly $700,000 deferred‑revenue timing issue that could make 2024 “look more like a $2,000,000 loss.” Heather said the deferred revenue will likely appear in 2025 instead of 2024 depending on auditors’ treatment.

The finance update framed the meeting: Heather said the city is tracking approximately $35,000 a month in metered parking revenue and about $53,000 year‑to‑date in lodging tax receipts, both below budgeted projections. She told council members the cannabis tax and the timing of several new lodging properties remain major unknowns for 2025 revenue.

“The single biggest aside from lodging tax is the cannabis tax. We just don't have enough history,” Heather said, urging closer review of capital projects that assume future federal or state reimbursements.

Public works director Rob reported multiple infrastructure repairs underway, including stone‑sewer restorations that require multi‑day excavations,…