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Mesquite finance director: city27s cash balances rose in first quarter; some funds show timing and one-time entries
Summary
Director of Finance Ted Chin told council the city27s cash balances increased through Dec. 31, 2024; he outlined operating fund positions, timing-related accruals, higher wholesale water costs and internal-service fund pressures from medical claims.
Mesquite finance director Ted Chin presented the city27s fiscal first-quarter financial statements (Oct. 12DDec. 31, 2024) to the city council April 9 and said the city began the fiscal year with a $30.7 million cash balance in the general fund and ended the quarter with $42.6 million.
Chin said stronger property-tax collections (noting Dallas County recently began collecting Mesquite taxes) and other timing differences accounted for an $11.8 million cash increase compared with the start of the fiscal year; the city had collected 99.94% of the current tax levy as of the report. Sales-tax receipts through December were down versus the prior year in gross receipts but later accruals and updated monthly collections (presented separately) showed December collections higher year over year.
Chin reviewed each operating fund. The 4B Quality of Life (sales tax) fund ended the quarter at $17.2 million in cash but he cautioned funds are earmarked for capital projects, not discretionary spending. The water and sewer fund had working capital of roughly $79.8 million but noted a $2.4 million increase in wholesale treated-water costs paid to the North Texas Municipal Water District and an overall 6% increase in quarterly consumption compared with prior-year averages. The new solid-waste operating fund, created mid-year last fiscal year, had $3.5 million in working capital and was at 44.8 days of operating reserve.
Chin said the airport fund showed a cash decrease compared with last year due to end-of-year accounting and capital-project entries; auditors will help clean up journal entries and the airport position should improve after adjustments. The group medical insurance internal-service fund carried a $397,000 year-to-date net loss driven by higher claims in the first quarter; pharmacy copay changes were increased in the budget to address rising pharmaceutical costs, and human resources is reviewing plan design options.
Chin answered council questions on accrual timing, hangar purchases that had been expensed in operating funds instead of capital accounts, and the status of fund transfers. Council members asked if the opening of an employee health center could reduce benefit costs; Chin said the city expects some savings but pharmaceutical and outside medical costs will continue to pressure the fund.
Council received the report; staff will continue to work with auditors and departments on year-end entries and present budget-related proposals in the next budget cycle.
