Madison council approves intra-fund transfers to clear 2024 negative balances; treasurer outlines reconciliation work

The City of Madison Common Council on April 22 approved Resolution 2025-6C to transfer appropriations and revenue between funds to correct negative balances remaining from the 2024 financial close.

City finance staff explained that reconciliations for several funds were delayed at year-end, producing negative line items that must be cleared by council-authorized transfers. The transfers include moving money from city parks accounts into the general parks fund to cover a negative balance and addressing other items that staff expect to clear with incoming grant reimbursements.

Why it matters: The transfers are administrative actions required to close the city's fiscal year accounts correctly and to avoid carrying unresolved negative balances into the 2026 budget.

Details discussed - Staff said one unresolved negative balance in the general fund was roughly $42,078 and that other items, including reimbursements tied to a Federal Highway grant and a CCMG grant, were in process. Staff said one pending item was for about $28,000 and another larger one about $128,000, but asked the council not to quote those exact figures until final reconciliation. - Finance staff reported an unusually high volume of bank-account adjustments during reconciliation (several hundred adjustments on a single bank account) that slowed the closing process; reconciliations cover roughly 308 bank accounts monthly.

Vote and next steps - Council approved Resolution 2025-6C by roll call. Staff said they expect to return with additional cleanup items in May and asked for time to finish reconciliations before the 2026 budget is finalized.

Ending note: Council thanked finance staff for the work on reconciliations and directed staff to continue cleanup and reporting to ensure the city meets auditing requirements.