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City says overdue audits are closing out; fund balance policy and use of electric sale proceeds explained
Summary
City staff told the council the two overdue audits are near submission following JLAC guidance and summarized the city’s fund balance policy and how proceeds from the 2018 electric utility sale were set aside for pension, OPEB, storm reserves and capital.
City finance staff updated the council on overdue audits and on the adopted fund balance policy that allocated proceeds from the sale of the city’s electric utility.
City Manager/finance staff reported the fiscal 2022–23 audit was completed and submitted on May 7; the 2023–24 audit had been delayed but a Joint Legislative Auditing Committee (JLAC) letter set a submission deadline of Nov. 17. Staff said they were “on track to submit the audit for 23–24 by the end of this week or early next week,” citing the auditor’s remaining items and an expected near‑term deliverable.
Staff reviewed the city’s fund balance policy: the council adopted an initial written policy in June 2016 and revised it in 2019 to designate specific allocations of proceeds from the 2018 electric utility sale. Those allocations included $14,400,000 for a general fund pension liability, $9,450,000 for OPEB (other post‑employment benefits), an emergency storm reserve increased from $2,000,000 to $3,000,000, and a capital reserve of $21,000,000. Staff said the city has spent $3,000,000 from the capital reserve ($1,000,000 to the Jimmy Graves Complex and $2,000,000 as a loan to the marina project) and that staff will propose updated amounts in quarterly reports beginning after the first quarter of the fiscal year.
Council members thanked finance staff for resolving audit delays and requested continued quarterly reporting on fund balances and capital reserve usage.
