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Frostburg council reviews completed audit, discusses remaining ARPA obligations and budget timeline
Summary
City finance staff reported completion of the fiscal 2023–24 audit, described remaining American Rescue Plan Act obligations and previewed next month’s budget work session on tax and utility rates.
The Frostburg City Council was told on the city’s auditor has completed its fiscal year ending June 30, 2024, audit and single-audit work and that remaining American Rescue Plan Act (ARPA) funds remain obligated but not yet spent.
That overview came from Elaine, a finance department representative, who told the council the auditor — Hubert Michaels and Company — completed both the regular financial audit and the single audit triggered because the city spent more than $750,000 in federal funds during the year. "We did have to obligate all of the ARPA funds by the December 2024. We have until the December 2026 to actually spend that money," Elaine said.
The finance presentation explained why the city had a single audit this year and what to expect in coming budgeting steps. The audit shows an overall increase in the city’s net position for the year ending June 30, 2024, driven in part by ARPA funding and stronger interest earnings, Elaine told the council. She said governmental funds showed an ending fund balance increase of about $913,000 and a long-term debt decrease of roughly $510,000.
The council was told outstanding principal due in the coming year totals about $685,000, with the largest share tied to the water-storage charge fund related to Piney Dam debt. Elaine said the city will begin its annual budget process and will discuss tax rates, utility rates and hotel/motel funding requests at next month’s work session.
Elaine also explained how the ARPA accounting appears in the monthly finance statements: an "unearned revenue ARPA" line shows how much has been obligated but not spent. At the January report that figure was roughly $1,600,000, she said; earlier in the meeting another speaker estimated approximately $2,000,000 but then pointed to the line item as the authoritative number.
The finance office encouraged residents to review the auditor’s report and the work‑session video on the city website for more detail; Elaine said she is available at City Hall and that documents and contact information are posted with the finance report. The council scheduled a work session next month to discuss the budget where public input will be accepted in writing and at that meeting.
