Ephrata council hears first-quarter finance report; officials flag reimbursements and fuel-tax shortfall

Ephrata City Council reviewed the city's first-quarter financial report and received staff warnings that reimbursable grants and lower fuel-tax revenue could distort near-term cash flow.

In a presentation to the council, a staff member summarized the picture: "We're over that with revenue, and we're under that with expense. So we're looking good there." The presenter said sales tax receipts for the period were about 4% higher than the same quarter in 2024, and the general fund is broadly on track for the year.

Council members pressed staff on several specifics. The presenter said some large grants are reimbursable and therefore make fund balances appear low until project spending is submitted and reimbursed. "Since it's reimbursable, we won't get that money until we spend it," the staff member said of a street fund grant of more than half a million dollars. The council also heard that fuel-tax revenue is down from the same period in 2024, and that sanitation currently shows higher-than-expected revenue and lower expense.

Councilors asked about the city's vehicle-replacement approach and whether moving to an enterprise model for the fleet would change the equipment-rental accounting. The staff member said the city would like to collect funds before buying vehicles but that the fund is not yet large enough to both retire prior vehicle costs and purchase replacements without doubling the pool contributions.

On reserves, staff reported that most of the general fund is unassigned and estimated that the unassigned balance is roughly $4,000,000. Councilors also noted that many restricted funds'such as fuel tax and certain construction budgets'can only be used for specific purposes, limiting flexibility.

No formal action was taken; the report was received for discussion. Councilors asked staff to continue monitoring reimbursements for construction projects and the sanitation fund and to report back as necessary.