Stacy, the city’s finance presenter, briefed council on the FY24–25 audit recap and the first‑quarter FY25–26 update during the Nov. 24 meeting.

Stacy said the city began FY24–25 with roughly $25.1 million in reserves and ended the year with an estimated $31.9 million after recognizing about $6.8 million of net increases. She identified two large drivers: an approximately $8.1 million positive variance in net‑profits revenue (largely driven by amended returns and companies applying tax credits) and an insurance‑premium‑tax collection about $1.1 million above budget. She cautioned that net profits are not reliably recurring and said the city budgets conservatively for consistent revenues only.

Stacy explained accounting ramifications of noncash items such as leased vehicles and subscription‑based IT agreements (recorded under accrual accounting) and said the city will adjust FY26 budgeting to present those items differently. She also reviewed the city's 30% minimum fund‑balance policy, noting a policy minimum calculated at about $15.2 million and a projected FY25–26 year‑end balance just under $28.4 million after an assumed draw on reserves of roughly $3.6 million.

Stacy also gave an ARPA update: the city was granted $9,219,845 and has committed most ARPA funds; the Office of Affordable Housing has been supported with ARPA funding (shared with the county) for three years and ARPA funds are expected to be fully spent by mid‑2026 assuming planned capital purchases arrive as scheduled. Councilmembers asked for clarifications about deferred tax credits and software/analytics used for forecasting; Stacy agreed to provide additional details on request.