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Keystone staff present healthier-than-expected general fund, outline software, staffing and public-safety costs
Summary
Council heard a financial update showing stronger starting reserves than budgeted, discussed an in‑house accounting system rollout with temporary implementation costs, and reviewed public-safety and workforce-housing revenue shifts.
Keystone council members reviewed an updated FY forecast that staff said leaves the town in stronger shape than originally budgeted, but still requires attention to several line items and software transitions.
Financial director John told the council the town's general fund balance is "almost $2.4 million," with the workforce-housing fund at about $1.2 million and the lodging-tax fund near $800,000. He said the approved budget had assumed a $1.1 million starting balance; the actual starting balance was about $1.94 million. Approved revenues of $4.74 million were forecast at $4.73 million, while expenditures approved at $3.72 million were forecast at $3.97 million.
John said staff expects the forecasted ending general-fund balance to be about $2.7 million versus the budgeted $2.13 million, noting the forecast includes both updated revenue and conservative expenditure assumptions.
Council members pressed staff on the sales-tax forecast and on an admitted projection error for January that affected year-over-year percentages. Council member Dan said the difference was material to the analysis of growth trends; staff responded that corrected projections still show Keystone ahead of many neighboring jurisdictions.
Staff described several specific revenue and expenditure items: a new lodging property expected to open in November is projected to raise both sales and lodging-tax revenues; the town will start receiving highway-users distributions in July after reporting lane miles; and a nicotine-tax intergovernmental agreement will be backdated to Jan. 1 once other jurisdictions sign, producing a larger net distribution than currently projected.
On the expenditure side, staff described adjustments to employee benefits, reduced flexible-spending account charges and a corrected payroll-tax entry that should yield refunds and savings. The town also plans to move accounting in-house using a modular government accounting system (Cassell), which will bring more detailed financial reporting to council but carries an estimated $30,000 overlap cost during implementation. John said the Cassell vendor guaranteed completion "by the end of the year," with a hope for an earlier rollout.
Public-safety expenses increased after the town signed an intergovernmental agreement to participate in a shared Keystone police force; staff said that change, combined with the end of the county sheriff contract, raised public-safety costs by roughly $61,000.
Separately, staff announced a $110,000 grant from the statewide internet portal authority to support the short-term rental program and related staff resources, and identified a roughly $200,000 shortfall in projected workforce housing revenues compared with earlier budget assumptions. Staff told council they will bring quarterly forecast updates and continue to refine numbers as the new town administration settles into operations.
The council did not take formal votes on the budget at the work session; staff asked councilors to identify any code changes or policy directions they want addressed ahead of more detailed budget sessions planned for July.
