Finance officer reports July/August revenue, warns of temporary general fund shortfall and TIF transfer plan

The council heard a detailed finance update covering July and August revenues and capital projects. The finance officer said in July the city received $3,100,000 in revenue and expended $3,200,000 and noted continuing work on sewer upgrades and the Cheyenne Westgate project. "In July, I received $3,100,000 in revenue, with a breakdown... and expended 3,200,000.0," the finance officer said.

The officer said the general fund currently appears to show a negative balance of about $1,600,000 but attributed much of the variance to TIF accounting timing. He said the audit clarified mechanics for moving remaining TIF funds into the general fund and estimated "about 400,000 of that will come over to the general fund and cover that." The officer estimated an ending general fund balance for 2025 of about $375,000 after recommended transfers and amendments.

Other highlights included a large loan draw tied to Hotel Way, a TIF payment under TIF 4 for a 10-unit project, a $140,000 receipt coded to miscellaneous revenue for Bennett Road contractual discontinuation, and a $335,000 insurance rebate recorded in August. The officer said grant draws for capital projects totaled about $1,300,000 in August and noted interest earnings, including roughly $21,000 from the Collier's account.

The finance officer recommended calculating and proposing budget amendments to carry the transfer and clean up fund balances; he said department budget requests are informing a single round of midyear/year-end amendments this year. The report closed with the officer offering to bring calculations and recommendations to the council for formal amendment action.

Next steps: the finance officer will present recommended budget amendments to effect the TIF transfer and restore the general fund balance; no formal vote on amendments occurred at this meeting.