Atwater finance committee hears sales‑tax dip; finance director explains end‑of‑year 'true up'

The Atwater City Finance Committee met at 5:00 p.m. and approved routine items, then reviewed the unaudited treasurer's report for the month ending March 31, 2026, and received a finance director update on sales‑tax activity, the FY25 audit and the FY27 budget schedule.

Finance Director Anna told the committee that the fourth quarter 2025 cash receipts reported to the city showed a 9.2% decline, while total local business activity fell 2.1% (California overall down 4.6%). "The cash receipts up above showing negative 9.2%," she said, and added that those cash receipts reflect timing and remitter behavior rather than a direct economic trend. "The economic trend line to business activity is located towards the bottom of the page," she said.

Committee members pressed staff about several funds showing temporary negative balances. The finance director explained that some negative balances reflect pending drawdowns from grant authorities or end‑of‑year allocations. "We usually do that at the end of year annual transfer," she said, describing the practice of waiting until fiscal‑year close to 'true up' capital and assessment funds so the city does not transfer general‑fund money unless necessary.

The finance director also said the city's FY25 audit is in "the final stages of compilation," noting the department has absorbed new accounting complexity from GASB 101, which changes how compensated absences are calculated. She credited additional accounting staff and operational changes — including moving from bimonthly to weekly check issuance for vendors and completing a new payments system for development services — with helping meet audit timelines.

On scheduling, the director said the draft fiscal year 2027 budget is set to be presented to the city council on May 26, and that the city's investment policy is under annual review for compliance with changes to the government code. She invited committee members to request deeper briefings on topics such as pension funding policy, reserve policies and how CalPERS works.

The committee approved the agenda, the minutes of Feb. 23, 2026, and the treasurer's report by recorded voice votes. Vice Chair Ross Chester had no additional comments. City Treasurer Borba complimented Anna and her team for the improved timeliness and operations. Chair Ambreese adjourned the meeting at 5:15 p.m.

Next steps: the FY25 audit final document will be presented to the city council when complete and the draft FY27 budget will appear for council consideration on May 26.