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Mount Shasta council approves combining enterprise funds and closing solid waste improvement funds
Summary
Council approved audit-committee recommendations to combine several enterprise funds, terminate two solid waste improvement funds and transfer remaining balances to the general fund to address a negative drainage fund balance and simplify accounting; council set a committed fund balance to cover drainage shortages.
The council approved a package of finance actions recommended by the audit and finance committee to simplify accounting and cover negative balances in enterprise funds.
Speaker 4 outlined the recommendation to combine paired enterprise funds (e.g., fund 30 with 31; 40 with 41; 45 with 47) in the accounting system, noting that end-of-year reporting would still present separate totals via account numbers. Committee members recommended terminating the solid waste improvement funds (35 and 36) after the transition to third-party billing and transferring prior-year franchise fees (approximately $185,000 in the improvement fund) to the general fund. Speaker 4 reported the drainage fund has a negative cash position of roughly $80,000; the committee proposed committing about $157,000 from remaining funds to offset drainage shortfalls over future years.
Speaker 3 moved to combine the listed enterprise funds, terminate funds 35 and 36, transfer remaining balances to the general fund and set a committed fund balance to cover drainage shortages; the motion was seconded and passed by unanimous voice vote.
Council asked procedural questions about prior-year transfers and the option to set up an interfund loan instead of forgiveness; staff said transfers had been used historically and the committee recommended the consolidation approach. Staff will return with specific transfer amounts and implementation details in future committee agendas.
