City finance report shows low reserves and prompts council demand for quicker monthly cash reporting

City finance staff presented a third‑quarter budget report and a cash‑balance overview that showed a ‘‘V’’ pattern typical of property‑tax‑driven revenues but also an estimated year‑end general fund balance below the council’s 10% policy target if current trends continue.

Finance staff explained the timing noise in month‑to‑month cash — especially large transfers and reimbursements (e.g., gas‑tax‑funded street work, SAFER grant reimbursements to fire overtime) — and said some transfers historically occurred at fiscal‑year end but could be moved into quarterly transfers for transparency. The report noted items needing cleanup (interfund charges, payroll/coding issues after the city’s payroll system implementation) and recommended the finance team complete year‑end close work and report final audited numbers in the fall. Staff and the city manager said they intend to provide more regular departmental updates and improved carryover/encumbrance reporting.

Several council members pressed for monthly proof‑of‑cash reports, an encumbrance/carryover list and a streets fund transfer schedule; staff committed to providing additional clarity and to improving the cadence of reporting beginning in September when year‑end closing work is complete. Councilmembers stressed urgency because the adopted biennial budget reduces reserves and leaves limited margin for error.