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Finance staff outlines August shortfall, IRS 1099 cleanup and ARPA encumbrances
Summary
Finance staff reported a month-to-date August deficit driven by timing and unanticipated vendor invoices, described an IRS/1099 issue reduced from a potential ~$300,000 exposure to $26,698.97 after vendor follow‑up, and reviewed ARPA encumbrances and recommended PO/appropriation controls ahead of 2026 budgeting.
Finance staff presented the August 2025 month‑to‑date bank and reconciliation report and highlighted several items that will shape year‑end financial planning.
Key figures presented: month revenues of $729,916.58 and expenditures of $780,621.36, producing a negative net of $50,704.78 for August; an outstanding check report totaling $59,045.09; and a payroll/1099 exposure that initially approached several hundred thousand dollars but was reduced to $26,698.97 after vendor follow‑up and corrective filings. The presenter said the city paid the remaining amount and that vendors who submit corrected forms could reduce that number further.
Staff reviewed major funds and encumbrances, explaining that ARPA funds (fund 250) show roughly $497,427 encumbered of a $1.3 million total; fund codes were explained (101 general fund, 401 street levy, 302 fire/EMS levy, 230 waste collection, 201 streets). The presentation included recommendations: standardize PO processing and closure, stage vendor deliveries to match cash flow, and evaluate transfers for funds with low unencumbered balances ahead of year-end appropriations.
Committee agreed to review the proposed expenditure policy and recommended tighter PO practices; no formal legislative action was taken at this meeting.
