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City finance officer reports 2024 variances, board told a midyear budget amendment is coming
Summary
Marie, the city's finance officer, presented 2024 year-end financial statements showing an $80,000 shortfall in real-estate tax receipts tied to fiscal-year timing, roughly $60,000 in excess sales-and-franchise revenues, and unplanned capital and personnel costs; she said staff will propose a midyear budget amendment to formalize ongoing capital projects.
Marie, who identified herself as the city’s finance officer with Alon HCK, presented the city’s 2024 year-end financial statements and walked the board through key variances between actuals and budget.
She said real-estate tax collections were about $80,000 below the budgeted amount, which she attributed to a timing mismatch between the city’s fiscal year and the levy calculation. "Real estate tax collections were about $80,000 less than what was planned in the budget," Marie said. She also reported that sales-tax and franchise-fee receipts came in about $60,000 higher than anticipated in 2024.
On the expenditure side, Marie told the board that certain personnel costs, judicial and contractual costs for the court, and unplanned items such as a pump replacement for the sewer system pushed spending above budget in some funds. She also noted that the city was able to make an extra debt-service payment in the tax fund in 2024.
Marie said water revenues exceeded budget expectations while sewer revenues were slightly under budget; she recommended staff examine water-loss percentages because maintenance costs and main breaks suggested some system losses. "We'll be proposing a budget amendment for the board to consider to make sure that we get all the capital projects that we have going approved by the board," Marie said, adding that statute prevents staff from writing checks for items not authorized by the board.
The presentation included a plan to change monthly reporting beginning next month to add beginning- and ending-cash balances for each fund so the board can more easily reconcile revenues and expenditures. Marie told the board she expects to return with a proposed midyear amendment after the sixth month of the fiscal year to record ongoing capital work and align budgets with projects already underway.
Next steps: staff will bring an explicit budget-amendment item for board action once the six-month review is complete.
