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Council reviews finance report; council assigns $4.5 million for ongoing capital projects
Summary
City finance staff reported a midyear revenue shortfall and proposed assigning roughly $4.5 million from unassigned fund balance to ongoing capital projects including a TAP grant, armory renovations and a community center project; council approved the assignments.
City finance staff told the Clinton City Council that the city faces a midyear revenue shortfall and that the council should assign a portion of the unassigned fund balance to ongoing capital projects.
The finance report, presented to the council in packet materials and summarized at the meeting, said the city was about $2.3 million short of projected revenues; staff attributed roughly $2.2 million of that gap to timing and expected reimbursements tied to the JC pool grant and the TAP grant. The report showed approximately $1.6 million in capital outlay overages for ongoing projects and said June expenditures exceeded revenues by about $3.2 million, causing the general fund balance to fall from $12.2 million to $8.9 million.
To address known project commitments, staff asked the council to reassign $4,514,812 from unassigned to assigned fund balance for specific projects including the TAP grant, a traffic signal at Mariner Point, armory renovations, community center/bowling alley upgrades, the proposed Fire Station 3/EOC partnership, front-park pickleball courts, Washington Street resurfacing and vehicle purchases. Council approved the proposed assignments by voice vote.
City staff also listed two additional assignments: $30,002.68 for administrative computer equipment and $150,000 for a street-paving fund. The finance presenter said that, after the assignments, the city's unassigned fund balance was expected to remain roughly $4.5 million by fiscal year end and that total fund balance (assigned plus unassigned) would be about $8.85 million.
During the discussion, staff described a pending grant application that could reduce the city's contribution for the armory renovation. The city reported receiving a $500,000 Community Development Block Grant (CDBG) award for the project and said a possible additional award of about $1.3 million (from another federal or partner source under review) could reduce the city's anticipated $1.8 million share to about $500,000 if approved.
Council members did not amend the assignments. Staff said final year-end shared-state revenues and one month of sales tax receipts could partially offset the year-to-date shortfall; May sales taxes were up about 7 percent from the prior year while fiscal-year-to-date sales taxes were roughly 0.5 percent below the prior year with one month still outstanding.
The council approved motions to accept the finance report and to move the listed amounts into assigned fund balance for the identified projects.
