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HHC CFO reports April fund balance decline; board told refinancing of Build America bonds may be proposed in June
Summary
Interim CFO James Simpson presented April financials showing a decrease in the general fund balance driven by intergovernmental transfer expenses and open purchase orders; staff projected an estimated $30 million decrease in change in fund balance for 2025 and said a Board resolution to begin refinancing Build America bonds is planned for June.
Interim Chief Financial Officer James Simpson presented the April financial report to the board and said the change in the general fund balance through April 30 reflected an approximate $4.5 million drop driven by larger-than-expected intergovernmental transfers (IGTs). Simpson said some revenue lines were above budget while grant revenues were under budget; he attributed higher-than-budget contractual expenditures to nearly $19 million in open purchase orders as of April.
Simpson said capital outlays were below budget in April but are expected to be spent later in the year, and that staff would update projections to reflect state budget changes. "I do expect this change in fund balance to decrease with the May financial report out through year end," Simpson said, adding that current estimates put the year-end change in fund balance at approximately a $30 million decrease for 2025.
Separately, Paul Babcock said HHC plans to present a resolution in June to begin the process of refinancing Build America bonds (so-called BABs) issued previously. He described the refinancing as a multi-step process that would start with the HHC board, then proceed to the city-county council, the building authority and finally the bond bank; staff does not expect pricing until around September.
Board members asked clarifying questions and thanked staff for revising the financial report to include year-end projections. Simpson said no transfers were being changed immediately; staff will update forecasts once the fiscal impact of state legislation and other variables is clearer.
