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Council approves fund consolidations and moves $250,000 PLHA administrative allocation to general fund
Summary
The council voted to combine enterprise funds, terminate solid-waste funds and transfer balances to the general fund, and approved depositing $250,000 in PLHA administrative fees into the general fund to support reserves.
The Mount Shasta City Council on July 28 approved several finance motions to combine and close legacy enterprise funds, resolve negative balances in smaller grant accounts and accept permanent local housing allocation (PLHA) administrative fees into the general fund.
Finance director Melissa Dodd presented an auditor-endorsed plan to combine paired enterprise funds (30 and 31; 40 and 41; 45 and 47) and to terminate solid-waste funds 35 and 36. Dodd said the city’s accounting system can maintain separate accounting at the account-number level while consolidating fund structures to simplify year-end reporting. She advised that solid-waste franchise fee revenue (approximately $52,373 this year) historically had been held in an improvement fund but the city auditor recommended directing the franchise fee into the general fund.
Council and staff discussed several legacy negative balances. Dodd said the drainage fund currently shows roughly an $80,000 negative cash balance and recommended committing about $157,001 to cover planned drainage shortages over coming years while transferring remaining solid-waste fund balances to the general fund. The council approved a motion to combine and terminate the listed funds, commit a portion of the former solid-waste balance to offset drainage losses, and transfer remaining balances to the general fund.
Dodd also reported a small negative balance in a closed Community Development Block Grant (CDBG) account (about $4,727) and recommended covering it using program-income funds (Fund 61). The council approved transferring program-income funds to eliminate the negative CDBG balance.
Separately, the council approved accepting $250,000 in administrative fees from the city’s $5,000,000 PLHA award. The PLHA program provides long-term loans to the Danko/Seeing Mountain Townhomes project; the $250,000 represents the program’s administrative allocation and will be deposited to the general fund to offset city expenditures and improve reserves. Staff and a councilmember explained the $250,000 is not construction funding for the project but an administrative allocation payable over the life of the program.
The council voted aye on the combined package of motions; no votes in opposition were recorded.
