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Committee reviews fund balances, investment positions and audit schedule
Summary
Officials outlined general fund cash balances, transfers to investment accounts, and the timeline for the 2023–24 audit work with Baker Tilly and Forbus, noting the city is unlikely to meet the GFOA June deadline for the current year.
City finance staff presented fund and revenue reports and described investment holdings and audit timelines to the finance committee on March 24.
Clerk Treasurer Marla reported the general fund began the period with $10,410,000 in cash, collected $6,040,000 in revenue, and disbursed roughly $14,000,000; $10,000,000 of that was invested with Goldman Sachs, leaving a reported balance of $2,340,000 in the general fund. Marla noted investment income and bond proceeds provided cushions but that disbursements outpaced revenue for February.
On investment strategy, Marla asked the committee whether to reinvest short-term treasury holdings or begin liquidating securities to cover upcoming cash needs. She said one short-term holding matured and that money could either stay invested or be used to meet near-term obligations. "Yields on the money market are about 4 and a quarter. Treasuries are at 4 or a little less," Marla said, asking for committee guidance on whether to begin liquidations to avoid cash-flow shortages.
The committee discussed several upcoming cash needs: the appropriation transfer line and a recently approved land purchase routed through the Board of Public Works required reallocation of funds, and staff noted Ben had signaled an additional appropriation request of about $2.5 million that likely will not be needed until summer.
On audits, the committee was briefed on the 2023 AFR (annual financial report) status and the 2024 audit kickoff. Marla said Baker Tilly's kickoff is scheduled for April 10 and that Baker Tilly estimates approximately 90 to 120 days to complete initial financial statement work as a new client. Forbus (auditor) has been authorized to begin audit work after state paperwork; Marla said the city will likely miss the GFOA June 30 filing deadline for this year and will request the same type of extension previously requested.
Committee members asked for schedules and for staff to prioritize cash-flow planning so the city can meet project timelines without forced divestment of higher-yield investments. Staff agreed to provide more detailed timelines and a recommendation on whether to liquidate specific short-term investments before the summer cash needs arise.
