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Ishpeming finance director reports June balances; staff files audit extension, applies solar grant funding
Summary
Finance director reported June fund balances, explained timing differences due to large capital projects and grant reimbursements, announced an audit filing extension and confirmed an award for a solar grant for Brass Wire Campground.
Ishpeming’s finance staff presented the council with the June revenue-and-expenditure report and recommended actions at the July meeting.
Finance reported key figures for June: a general fund ending balance of about $1,248,000; personnel services remain the largest expenditure category year to date; major and local streets showed shortfalls driven by delayed state revenue sharing and elevated winter maintenance costs; the sewer fund reflected significant professional/contract services (CWSRF-related) with large reimbursement activity totaling approximately $3,000,000 year-to-date and an ending fund balance reported at about $11,500,000; the water fund showed $244,000 in metered collections for June and was similarly carrying large contract expenditures pending reimbursement. Staff emphasized that many deficits are timing issues tied to pending state reimbursements for capital projects.
Finance also told council that the city received an official award letter for a solar grant for Brass Wire Campground and that staff are preparing RFPs to start the procurement process. Auditors requested and the city filed a standard audit extension; staff said there was no indication of problems, only scheduling delays, and that the final audit report is expected about 30 days later.
Council voted to accept the financial statement as presented and approved Q2 budget amendments that recognize carryovers (e.g., a patrol vehicle purchase), contract timing, and grant-related appropriations. Finance staff said they will monitor fund performance and return with any required reallocations in Q3.
Grant-level details: CVTRS revenue of $176,000 was reported for June; Metro Act distribution of about $32,000; the major streets ending fund balance was reported at $9.27k and local streets at roughly $7.09k (reported as thousands in the staff presentation). Staff recommended that the council keep service levels (such as winter plowing) focused on safety while recognizing the fiscal impact on streets funds.
Minutes: council accepted the finance presentation by voice vote.
