Committee approves treasurer's unaudited report after questions on water capital reserves

The Audit & Finance Committee approved the treasurer's unaudited financial report for the month ending Jan. 31, 2025, following a brief discussion about timing of deposits into the water capital fund.

During the treasurer's report, a committee member noted that water operating fund revenue had ‘‘gradually increased according to the budget,’’ but said they had not seen a corresponding buildup in water capital fund reserves consistent with a 25% deposit requirement cited from the municipal code. The committee member asked Treasurer Nichols to explain how the timing of deposits, expenditures and other factors affect the apparent discrepancy.

Treasurer Nichols answered that the timing of deposits and capital expenditures can create periods where operating revenue increases do not immediately translate into reserve growth, and staff gave a brief explanation to satisfy the committee's request for clarification. After that exchange, a motion to approve the treasurer's report was made and seconded and carried by roll call.

Vice Chair Rochester, who had been introduced earlier in the meeting and said they were new to the committee and studying the budget, thanked members for patience as they learn the committee’s fiscal processes. No formal follow-up assignment to return with a written analysis was recorded on the transcript; the Clerk indicated items requiring further action would be referred to staff or placed on a future agenda if necessary.

The committee then moved on to other routine business and adjourned at 5:18 p.m.