Finance staff presented a near‑final review of fiscal year 2025 numbers and told the council a draft audit arrived June 30 but still includes open questions that staff are answering.

Nate, finance staff, said he was about 98% reconciled on FY25 and that the draft audit had flagged a few items. "I did get a draft audit on June 30. However, there were a few highlighted areas that they were still questioned about," he said. Staff are continuing to work with auditors before the audit is finalized.

Councilors focused on two technical finance items. First, a spreadsheet included receivables highlighted at the top that were being counted in totals, which made the revenue total appear about $1 million short of budget. Staff explained the receivables are accruals (invoices issued but not yet collected) and should not be added to the receipts total; when removed, the operating results showed roughly $914,000 more in receipts than expenses.

Second, staff said FY25 ended approximately 0.2% over the adopted budget — about $62,000 — and that some expense overruns were concentrated in legal services and overtime salaries for fire dispatch. Nate attributed some salary variances to employees leaving the city and cashing out paid time off.

Staff also told the council that June accounts payable and June revenues not yet posted will change the numbers once moved into the correct fiscal year. Nate noted the report does not yet include all June AP and that adjustments will be made when those invoices and accruals are posted.

Training and process improvements: Multiple council members suggested targeted training on municipal accounting differences from private accounting. Staff and council discussed arranging a half‑day or tailored workshop covering modified accrual accounting, receivables versus receipts, and municipal debt schedules to help new and returning council members better interpret reports.

Audit timeline and next steps: Staff said they had provided responses to auditors’ questions and are awaiting final audit documents. Council directed staff to update the financial tables to exclude receivables from the receipts total and to report back with finalized numbers once the audit and June AP postings are complete.

No formal motions or budget amendments were made during the meeting.