Sunnyside finance director warns of fund shortfalls, seeks CPA review and procurement controls

Finance Director Monica Hofstadter told the Sunnyside City Council at a special budget workshop that multiple fund accounts require reconciliation, the 2025 budget will need formal amendment before year-end and that several enterprise funds are being subsidized by the general fund.

Hofstadter opened the presentation by saying, “there's just a lot of line items that were left blank, and they can't be blank,” and warned the council she planned “to revise the 2025 budget, and have it amended before the end of the year.”

Why it matters: Hofstadter presented account-level reconciliations back to 2022 and said some 2024 balances have not been closed. She recommended hiring a CPA firm to complete and certify 2024 accounting, produce a clean annual report for auditors and speed resolution of outstanding inconsistencies so the city can set reliable 2026 starting balances.

Key numbers and fund status

- Hofstadter said the enterprise funds’ estimated beginning balances and projected revenues total $17,614,210, with projected expenses of $15,903,128 and transfer activity leaving about $54,637 in reserves.

- The sewer fund was called out as deficient by $947,000 and identified as the largest drain on the general fund.

- Hofstadter said the city received $627,400 from a GEO/GEL inmate-housing contract; she noted the first commissary check was about $2,000 and that net revenue from the commissary is small but…