Fort Thomas resident presses council on FY23-24 audit and pension numbers as council debates updated investment policy

Resident Sharon McKnight asked for an update on the FY2023-24 audit and whether audit findings would be presented at a council or finance-committee meeting. McKnight said the city is holding $310,000 in mutual-aid funds pending the audit and asked whether that hold would affect the 2025-26 budget or tax rate. Staff answered that the auditor, John Chamberlin, is expected to present at a finance-committee meeting to explain findings.

McKnight raised a specific discrepancy she found comparing figures discussed at a June 2 public hearing to later documents. She said council member Andy Ellison told the public the police pension cost rose from $1,000,000 in the original FY24-25 budget to $1,220,000 in the amended budget and that a total increase of $773,000 was reported. McKnight said her independent calculation found a larger total increase of about $966,561 (police $659,141; fire $307,420), leaving a $193,561 difference. "It was $773,000," McKnight said when recounting the earlier figure; she asked staff to provide clearer variance explanations in the budget materials so residents can follow large swings in fund balances.

Separately under visitors and communications, a resident identified as Steph raised the city's draft investment policy and suggested tightening who holds authority to approve investment actions, recommending a three-person approval if needed and asking the policy to use a "prudent investor" standard rather than a "prudent person" standard. Council and staff said the draft is preliminary and will be held until the city selects an investment partner; staff noted current holdings are CDs and a money-market account and that securities are not in the city's portfolios now.

Staff offered to meet with McKnight to review the documents and said updated copies and an auditor presentation will be arranged for the finance-committee meeting.