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City finance staff says operating cash near $21 million, flags pension and audit caveats
Summary
At the Sept. 8 Budget and Finance Committee meeting, city finance staff reported a roughly $20.8 million operating cash balance and a $1.9 million favorable year-to-date net driven by expense underruns, while warning the outlook remains contingent on a $40 million past-due pension liability and pending court cases.
The Budget and Finance Committee on Monday, Sept. 8, 2025, heard a midyear financial recap showing the city’s operating cash balance at about $20.8 million and a $1.9 million year-to-date favorable net position.
City finance staff said revenues were about $2 million unfavorable to budget through July — driven in part by timing differences in the receipt of host fees — while expenses were roughly $3.9 million favorable, producing the net positive. “We still maintain a comfortable 20.8, almost $21,000,000 operating cash balance,” the finance presenter said during the committee’s slide presentation.
The presentation outlined that the revenue shortfall appears to be a timing issue and staff expect receipts to “catch up” by year end. Staff also said some favorable expense projections reflect lower-than-expected legal fees and unfilled positions; the meeting record includes a discussion of roughly $600,000 in compensation savings tied to current vacancies, and a reminder that budgeting should not rely on ongoing vacancies.
Committee members and staff cautioned the projections hinge on two important caveats: a roughly $40 million past-due pension obligation and pending court cases that could require additional payments. City officials said those items would require revisiting the outlook if obligations are enforced by the courts.
On audits, staff reported progress: the 2021 audit is nearing completion and 2022 work is staged for the auditors. Staff estimated the city could be caught up with audits by early next year, but said software transitions and past year-to-year changes have complicated the audit timeline.
The committee briefly discussed specific revenue lines, including earned-income tax as a positive contributor, and specialty funds that staff described as healthy. Staff said payables remained consistent and that, overall, year-end results were expected to be close to budget barring the identified caveats.
Less-critical agenda items and public comments followed the presentation. The committee approved the minutes from its May 19, 2025 meeting and later voted to close the meeting.
