Finance reports midyear budget healthy; city cash at $15.8 million with $11.1 million in water reserves

City finance staff presented a midyear budget review showing generally positive fund trends and sufficient reserves. Finance staff member Zeke told the council the city currently holds about $15.8 million in cash, and that $11.1 million of that is earmarked to the water utility. Staff noted the general fund is trending with about $1 million in revenues over expenses year‑to‑date and that roughly $2 million in grant reimbursements are expected in the coming months for capital projects.

The presentation covered a multi‑year look at the general fund, debt service, capital projects, and utility funds. Staff highlighted that timing differences for capital grants can make expense lines look elevated until reimbursements arrive and that the sanitation fund has stabilized after operational changes. Staff also reported ongoing audit work for fiscal year 2025 and said system conversion issues had contributed to prior anomalies.

A council member moved to approve the financial review; the motion was seconded and approved by voice vote. Staff said they will bring department‑specific requests for next year’s budget during the upcoming budget cycle and that any transfer of water utility funds would require a budget opener and public hearing.