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Portage audit shows much smaller deficit than projected; council keeps banking relationship and prepares taxi RFP
Summary
Finance staff told the Common Council the city’s 2024 deficit narrowed from a projected $445,000 to $70,000, the fund balance sits at 16.9% and the council voted to stay with Community Bank of Portage after reviewing bank proposals; staff also said the city will issue a taxi RFP this year.
Portage City finance staff told the Common Council on Tuesday that the city’s 2024 shortfall was far smaller than originally projected and the council voted to keep its primary accounts with Community Bank of Portage.
Jennifer Becker, finance, said auditors from Baker Tilly had projected the city would finish the year “negative 445,000; we ended up at negative 70, so as a group we made up $350,000 there.” She told the council the city’s fund balance now stands at 16.9% — below the department’s stated target of 20%–25% — and said software changes planned for July should “help streamline our budget process.”
The council approved $1,064,785.10 in claims during the meeting. Alderperson Brunnander moved to approve the claims; Alderperson Crowley seconded the motion and the roll call vote carried with a majority of aye votes.
After reviewing three proposals in a request for proposals for banking services, Alderperson Schlinkert moved — and Alderperson Paul seconded — a motion to remain with Community Bank of Portage as the city’s bank for the 2025–2028 contract period. The roll call showed the motion passed with aye votes from Schlinkert, Tranto, Wetzel, Crowley, Donahue and Paul.
Becker said the city will put the taxi contract out to bid: “When it comes to our taxi, this is the final year of our 5 year contract, so we will be going out to RFP. We have a kickoff meeting scheduled with the state next week, and I will follow-up with the finance committee on what that process and timeline looks like after I have that meeting.”
On audit details, Becker told the council staff worked on correcting prior-year misstatements and highlighted segregation of duties as an area for continued process improvement. She said some audit adjustments came from earlier corrections and that staff review identified where procedures should be changed to prevent repeats.
In the bank RFP discussion staff noted service features and insured cash sweep (ICS) availability affected proposals: two credit unions that responded do not currently offer ICS and would require either certificate of deposit placements or multiple accounts to achieve full federal insurance for large city balances. Staff recommended staying with the incumbent bank based on overall interest earnings, earnings credit offset, and customer service. Becker said the city will implement positive pay and other fraud-mitigation features with the bank.
The council did not adopt new taxes or alter the city’s fund-balance target at the meeting. Becker repeated that the audit “went smoothly” and thanked departmental staff who supported the audit work.
The council also approved several other routine finance items on the consent agenda and will hear updates from the finance committee on the taxi RFP and software rollout in coming weeks.
