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City staff says midyear budget shows a modest surplus despite new liability rules
Summary
Staff presented a March snapshot showing $13.6M in year-to-date revenues and $12.9M in year-to-date spending, a beginning available fund balance of about $2.5M, and a projected year-end positive position of roughly $111,000 after a $400,000 GASB-required leave-liability increase.
Peter presented the council with the fiscal-year budget snapshot through March and said the numbers are a point-in-time view rather than a formal year-end projection. "So year to date, we've collected 13,600,000. And through March, we'd only spent 12.9," he said, noting tax revenues typically lag and the packet is the state-auditor template.
Peter and council members discussed differences between two balance reports in the packet and how a recent GASB pronouncement changed recognition of leave liabilities. Peter described the effect as a roughly $400,000 increase in recognized leave liability, reducing what the staff calls the available (unappropriated) fund balance. He said, after accounting for liabilities, the city started the year with about $2.5 million available and his working projection for year‑end is a roughly $111,000 positive position (he described this as a best current estimate).
Council members asked for clarity on how the different report pages map to the fund-balance figures and how restricted funds (class C road funds, liquor funds, and other restricted accounts) affect that available number. Peter reminded members that some funds—such as class C road funds—are restricted to statutory purposes and therefore not part of the general-spendable balance. He said staff will continue reviewing line-item transfers and budget amendments and will present final amendment hearings at an upcoming meeting.
Ending: Council took the report for discussion, asked follow-up questions about line-item true-ups and the auditor's template, and directed staff to return with the final budget amendment hearing materials at the next meeting.
