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Hudson staff report improved but still-negative general fund; council discusses levy increase and pending audits
Summary
City staff said accounting transfers reduced a previously reported $1.15 million shortfall to about $594,000 negative; council discussed a proposed levy increase (capped at no greater than $1.93 per $1,000) and scheduled further budget work and audits to reconcile accounts.
A staff member explained that an internal review of fund balances and transfers has cleaned up accounting entries but the city's general fund remains in deficit.
"When I started this, my general fund was at 1.15 million dollars in a negative... So, now our treasurer's report shows our fund balance in the general fund. It's still a deficit, but it's a lot better. It's $594,000 in the negative," the staff member said, noting she and another employee will continue reconciling balances and work with auditors.
Council members said rising employee benefit costs and a projected 12% increase in insurance premiums are driving discussion of a property-tax levy increase to help close the gap. At the meeting, council described a cap on the contemplated levy increase of "no greater than" $1.93 per $1,000 of assessed value; officials emphasized the final levy rate will be set when the budget is finalized.
The council scheduled a budget workshop with department heads and said the city is awaiting state-audit or extension letters; staff said they expect the audits to help identify misplaced entries and further improve reported balances.
Resident Lori N., who said she received a notice about the proposed tax increase in the mail, told the council she had not attended the earlier public meeting and asked for clarification. "I just got a letter in the mail and I was just wondering what you guys are proposing," she said.
No final levy or budget was adopted at the meeting; the council instructed staff to continue work with auditors and department heads and to return with refined figures at upcoming budget sessions.
