Council warned city not in an auditable position; approves 2026 tax levy

Mayor Safford chaired a meeting where the council received a detailed finance update and acted on routine tax and budget items.

Commissioner Tracy told the council the city's director of finance departed without notice and a prior director returned temporarily to stabilize operations. "The auditors have advised the city is not currently in an auditable position," she said, citing incomplete reconciliations, insufficient backup for journal entries, misposted financial information, missing interest allocations and unsettled interfund transfers. Tracy said staff will focus first on reconciling 2025 accounts, strengthening internal controls and restoring compliance with bond and grant requirements.

Because of those findings, Tracy asked commissioners to pause first-quarter hirings and the start of new initiatives until staff completes reconciliations and a cash-flow analysis related to the proposed elimination of the prepaid-tax discount.

The council approved the annual tax resolution, recording a 2026 tax levy of $41,616,319.68. The motion passed unanimously, 5-0. Councilors also approved a budget amendment to transfer $88,905 from a restricted City Center fund balance to cover maintenance agreements and additional employee insurance opt-outs; that motion passed 5-0.

Tracy said she expects to bring an auditor contract forward at a future council meeting to support a written audit review and to continue updating the council as work progresses.

The council also approved several finance-related housekeeping items during the meeting; the finance office said it will provide more detailed updates as reconciliations and corrective work proceed.