City accountant Riley Barbera told the La Center City Council on March 26 that the city concluded 2024 with an unexpectedly large general-fund surplus and reviewed the structure and restrictions of the city’s main funds.

Barbera said the city had budgeted a $55,000 general-fund deficit for 2024 but ended the year with a roughly $720,000 surplus, leaving an ending general-fund balance around $4.3 million. “So all in all, we had budgeted for a $55,000 deficit, and we actually had a $720,000 surplus,” Barbera said.

Why it matters: The presentation explained where city revenue comes from and the legal or policy limits on how particular funds can be used. Barbera said taxes are the largest revenue source for the general fund, and gambling taxes and retail sales figure prominently. The city’s reserve fund began the year with about $4.4 million and is intended for emergencies; impact fees started the year near $6.4 million (about $675,000 in park impact fees and $5.8 million in traffic impact fees). Barbera also described REET (real-estate excise tax) balances — roughly $2.8 million combined — and noted those proceeds carry project-specific restrictions.

Barbera explained the purpose and constraints of several funds: impact fees must be reasonably related to new development and generally used for new construction (park and traffic projects); REET money must appear in the capital improvements plan to be eligible; the newly created roads-and-streets fund (established in 2023) covers road operations and capital projects but currently receives transfers from the general fund because state shared revenues and fuel taxes generate limited income. Enterprise utilities, such as sewer and stormwater, operate from their own revenue streams; Barbera said the sewer operation fund began the year with just under $1 million and that the city is planning a sewer-rate study.

The presentation listed department-level variances and noted public-works salaries and roads-and-streets allocations required midyear adjustments. Barbera said interest income and planning services fees were stronger than expected and building permit revenue lagged 2024 but may appear in the near-term permit pipeline. He closed by noting capital projects and impact-fee balances that staff expect to address in the 2025 budget process.

Ending: Council members praised the clarity of the report and thanked Barbera for the overview; staff said the 2025 budget process and scheduled rate studies (sewer/stormwater) will address some identified pressures.