Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
City presents unaudited 2024 year-end finances; wastewater shows temporary negative balance
Summary
Finance staff presented unaudited 2024 year-end results showing a 39% general fund balance target met, large timing-driven deficits in wastewater tied to capital projects, and early capital purchases that reduced reserves.
Matt, a city finance staff member, presented the City of Gardner’s unaudited 2024 year-end financial reports and said the figures compare 2024 actual performance to the 2024 revised budget and that audited numbers will be available in June.
The presentation said the general fund balance fell from about 45% to 39% because of planned uses of fund balance and one-time expenditures. General fund reserves declined from approximately $8.4 million to $7.6 million but ended about $250,000 higher than planned. Revenues increased about 4% from 2023 to 2024; building-permit revenue exceeded estimates while tax-related revenues declined, driven in part by lower gas franchise fees (about $233,000 in 2023 versus $182,000 in 2024). Court fines and fees also declined, affected by staffing vacancies and a downward trend since the pandemic, the presentation said.
On expenditures, administration had an unfavorable variance because the city acquired two properties as part of its downtown redevelopment plan; the total purchase cost for those properties was presented as about $815,000. Public works showed an unfavorable variance because staff purchased a street sweeper earlier than planned to address long lead times; the presentation said the sweeper cost approximately $390,000 and will be received and paid in 2025. The council-approved $925,000 transfer to the CIP reserve from 2023 to fund playground improvements was noted; playground work at Veterans Park was reported complete and remaining funds will roll to the Wynwood playground project.
Enterprise funds showed timing-driven variances tied to large capital projects. The electric fund recorded a large unfavorable variance tied to advancing the Gas Turbine 2 upgrade from 2025 into 2024; the presentation described a roughly $3.7 million variance associated with that project and indicated the city intends to issue bonds and reimburse the electric fund, which will restore fund balance. The electric fund remained above its target reserve (target stated as 25%).
The water fund posted a small 2024 deficit (about $154,000), the presentation said, driven by a shifted schedule for the water intake structure and preliminary transmission-line design work moving into 2025. The city had anticipated issuing debt in 2024 for an initial $3.5 million phase; that issuance shifted in timing.
The wastewater fund showed a large negative fund balance at year-end—about negative $32 million—explained repeatedly in the presentation as a timing issue caused by encumbering the full cost of major capital projects (including an approximately $40 million plant expansion) before issuing debt. The presenter said the city has an approved financing plan (general-obligation bond use) and, under Kansas budget law, may show a negative fund balance when a financing plan is in place; the shortfall will be addressed when the planned debt is issued.
Matt emphasized these are unaudited figures and that many variances reflect cash timing tied to capital spending and debt issuance rather than permanent operating deficits. Several council members asked questions during and after the presentation; staff confirmed the wastewater shortfall is expected to correct once debt is issued and that the city remains within Kansas cash-law requirements with an approved financing plan.
The council did not take a formal vote on the presentation; staff said the city’s overall fiscal condition is sound given planned reimbursements and reserves.
