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Clerk Treasurer warns of TIF cashflow pressure, recommends $3.5M reductions
Summary
Clerk Treasurer Stonecipher reported 2024 TIF results (revenues $11,800,000; expenses $12,200,000), flagged a near-$500,000 cash-balance reduction and recommended staff cut about $3.5 million from the certified 2025 budget to avoid a cash-flow crunch; he also described an expected arbitrage repayment of about $6,000 plus CPA fees of ~$2,700.
Clerk Treasurer Chris Stonecipher presented the statutory April 15 report on the town's tax increment finance (TIF) districts and an overview of the town's fiscal position for calendar-year 2024.
Stonecipher told the council "So you see the change in you see the total revenues of 11,800,000, expenses of 12,200,000" and said the result was a reduction in cash balance of just under $500,000 for the period presented. He explained a cash-flow scenario model showing thresholds (e.g., negative $2M manageable, $3M yellow light, $4M orange, $5M red) and recommended staff cut roughly $3,500,000 from the certified 2025 budget to protect cash flow.
Stonecipher also reported an arbitrage notice from Baker Tilly: because some bond proceeds earned interest, the town should expect to repay about $6,000 in interest and incur roughly $2,700 in CPA fees (about $8,700 total), drawn from interest earned this year (he cited being "just over $201,000 in interest" earned in the period). He emphasized the town segregates proceeds and grant accounts and offered to provide detailed documentation upon request.
Stonecipher said he plans a fuller "state of the finance" report in July after more tax receipts are known and encouraged council members to contact his office for any line-item questions.
