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Council reviews FY24 accrual statements and warns tax rate may need to rise
Summary
Mayor Harvey presented FY24 financial statements converted to full-accrual accounting showing $63,000 revenue over expenses and noted the city may need to consider increasing the tax rate to fund road maintenance after a one-time $20,000 CCN release and a $62,000 well payment classified as capital.
Mayor Harvey walked the council through the FY24 financial statements converted to full accrual, reporting approximately $63,000 in revenue over expenses and $91,005.85 in interest income for the year. He said property tax revenue was $21,008.42 and sales tax nearly $31,000, and explained a partial $62,000 payment for a new well is currently recorded as an expense for cash reports but will be reclassified as a capital expenditure at year-end.
Harvey cautioned that, despite a modest surplus, the city may not generate enough recurring revenue for road repairs and maintenance without adjusting the tax rate. "So that's where it's allocated...we had 63,000 revenue over expenses for the year...I'm gonna redo the budget and set the tax rate. I think that's something we need to really seriously look at because with that amount of property taxes, we're not gonna have the revenue to repair the roads," he said. Council discussed a bookkeeping typo (12/31/2025 vs 2024) and confirmed the audit will begin soon.
No formal change to the tax rate or budget was adopted at the meeting; staff said they will prepare materials and bring a proposal to a future meeting for council deliberation.
