Council reviews August finances, hears large SRF invoice reports and accepts payments for water/sewer work

City finance director Greg presented the monthly financial reports and explained key month-to-month movements, including timing-related items and a bond reclassification for water-sewer projects. The council then approved resolutions to pay contractor invoices tied to the city’s CWSRF and DWSRF projects.

Greg told the council the general fund showed a $104,000 year-to-date positive balance as of Aug. 31, 2025, and highlighted the City/Village/Township Revenue Sharing (CVTRS) receipts as the main August revenue source. He explained that in the sewer fund a negative $2,500,000 item represented CWSRF bond proceeds that had been correctly reclassified from revenue to a liability on the balance sheet; he emphasized this is a debt liability and not operating revenue.

Greg said the sewer fund is running a net expenditure over revenue year-to-date largely because of CWSRF capital spending (mentioned at approximately $3,100,000), and the water fund showed large grant and DWSRF expenditures (about $3,500,000 in grant-driven spending and a reported $1,900,000 of grant revenue for the month). He explained those capital expenditures are being capitalized as infrastructure assets and that timing differences in reimbursements can create temporary operating deficits on the income statement.

He also reported the DDA (downtown development authority) and garbage/recycle and police/fire retirement fund positions; the latter had market appreciation for the month.

Under resolutions and contractor payments, staff recommended payment of invoices tied to the CWSRF and drinking-water (DWSRF) projects. The council adopted resolution number 25-2025 to pay an invoice from Dolens, described in staff comments as just under $400,000, with staff noting about $1.3 million remained in that construction budget and retainage being held. The council also adopted resolution 26-2025 to approve payment of a set of drinking-water invoices totaling approximately $2,324,006.29; staff said the overall drinking-water project remained substantially larger (about $14.5 million still in construction at the time).

Greg also updated members about grant and donation items: Kwik Trip provided a $2,500 small-business grant toward the skate park, the Partridge Creek compost grant is near closeout pending a financial report, and the city is working with UPEA on the MDARD solar grant design specifications ahead of an RFP. He said the city has begun budget preparations for 2026 with a target date of Oct. 15 to deliver materials and that department heads had been interviewed for CIP requests.

Councilors asked follow-up questions about capital timing and whether contractors would continue work if state budget delays affected EGLE’s operations; staff said a state budget impasse could delay payments from state agencies and affect project timing.

No tax-rate change was made during these finance presentations; the council later confirmed the tax rate forms as part of a separate agenda item.