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City says delayed audits will be submitted this week; explains how electric utility sale funds are allocated
Summary
City staff told council the overdue fiscal-year audits (FY22–23 was submitted May 7; FY23–24 was delayed) are expected to be filed by mid-November after a JLAC deadline; staff reviewed the fund balance policy that earmarked electric utility sale proceeds for pension, OPEB, capital reserves and other accounts.
City staff updated the Vero Beach City Council on the status of the city’s audited financial statements and explained how proceeds from the 2018 sale of the city electric utility were reserved under the city’s fund balance policy.
Audit status Staff reported the fiscal year 2022–23 audit was completed and submitted May 7. The fiscal year 2023–24 audit missed the June 30 due date but staff said a letter from the Joint Legislative Auditing Committee (JLAC) established a final submission deadline of Nov. 17; city staff said they expect to submit the FY23–24 audit by the end of the week or early next week.
Fund balance policy and use of electric sale proceeds City staff reviewed the city’s written fund balance policy (adopted June 2016 and revised 2019) and said proceeds from the 2018 sale of the electric utility were allocated under that policy to several accounts. Staff provided the following adopted set‑asides (amounts as discussed in the meeting): - Pension liability (general fund pension): set aside $14,400,000. - OPEB (other post‑employment benefits): set aside $9,450,000. - Emergency/storm reserve: increased from $2,000,000 to $3,500,000. - Capital reserve (identified in policy): $21,000,000; staff reported $3,000,000 of the capital reserve has been spent (1,000,000 to Jimmy Graves Complex; 2,000,000 to marina loan).
Staff said the council had previously authorized using a portion of the sale proceeds for the general fund pension payment that was frozen in 2015, and that the city intends to update the numeric allocations as part of the upcoming quarterly reporting cycle.
Speakers in this article are identified using the meeting transcript.
