Libby officials report solid third-quarter spending, flag revenue timing and grants accounting

Libby city staff told the council that most departments are spending within expected ranges through the third quarter, but several revenue items and grant accounting practices will shape the final year-end picture.

Miss Monahan presented the budget review, saying departments were generally near the expected 75% spending level for the fiscal year. She noted the city has sold 24 building permits year-to-date, including three in March that totaled $6,385, producing $39,768 so far for the building fund versus a four-year average of $29,779.

On revenue timing, Monahan said the city expects a larger property-tax remittance around mid-June that typically brings the property-tax line to 100% of budgeted assumptions. She also noted volatility in cannabis tax receipts and that interest income is likely to track lower than previously estimated.

City Administrator Mr. Sykes reported staffing and operations news tied to utilities: he said "Gab B got certified, got her second chance. This is the first certified sewer operator in five years" for Libby, and that the city recently hired a construction-experienced worker who told his former boss, "I quit. I'm never leaving Libby, Montana again," according to Sykes' account.

Monahan said she is working with auditors to better segregate small grant awards into appropriate accounts for next year's budget and explained that some grant-related expenditures are temporarily recorded together until specific fund accounts are created.

On the water system, staff reported that a leak survey and subsequent repairs appear to be reducing water loss, which could reduce operating costs over the coming months.

Councilors asked for clarifications on a high-percentage line for facilities and sought additional detail about grant accounting; staff said follow-up documentation will be provided to explain line-item placements and planned account changes.