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Lindsay council adopts budget amendment citing current-year positive projection; members press for audit follow-up

Lindsay City Council · December 11, 2024
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Summary

Council approved a budget amendment that projects a $291,041 positive balance for the current year; members pressed staff on prior-year audit errors and requested a separate closed-session audit review.

Lindsay — The Lindsay City Council voted to approve a budget amendment after finance staff presented a year-to-date review and a plan to stabilize the city’s finances.

Staff told the council the current-year budget projects revenues of $7,979,860 against expenditures of $7,688,818, producing a projected current-year positive balance of $291,041. Finance staff emphasized that prior-year deficits remain and that the council will need to monitor fund balances and transfers closely.

Multiple council members pressed staff for more detail about audit findings and historical accounting errors. Council and staff agreed those audit-related corrective actions and detailed questions about accruals and balance-sheet items would be addressed in a separate closed-session audit review and would not change the current-year budget presentation.

A motion to approve the budget amendment carried with a recorded vote of 4 in favor and 1 opposed; the transcript records Mayor Burton Flores voting no. Staff recommended continuing work on internal controls, implementing standard operating procedures for payroll and journal entries, and bringing follow-up reports to council.

No new spending programs were approved in the amendment; staff said several grant-funded projects (HCD, ARPA) remain active and that ARPA-funded projects require timely contract execution. Council members asked that the audit findings be fully documented and scheduled for discussion in a future closed session.