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Committee flags negative water fund balance and asks staff to reconcile accounts
Summary
The finance committee noted a general-fund balance near $319,000 (as of April 30) and raised concern about a -$445,000 water fund balance; members asked staff to reconcile accounts, review interest-bearing options, and consider rate adjustments or EPA requirements to address the deficit.
Committee members reviewed bank statements and fund summaries and raised concerns about the village's water fund balance, which the packet showed as a negative ending cash position.
The clerk reported the general fund cash was about $319,000 as of April 30 and recent reconciled cash nearer to $288,000; the water fund showed an ending cash of approximately -$445,000. Committee members asked the clerk to finish reconciliations with the accounting software vendor and requested a report showing month-to-month cash flow and working capital needs. The attorney and members warned that regulators (the EPA was mentioned) could require corrective actions and that the village may need to adjust water and sewer rates if the water fund remains in the red.
Members also discussed placing idle funds into an interest-bearing account or money market to earn revenue instead of leaving funds in a low-interest checking account. The clerk and staff will follow up with reconciliations, confirm interest rates currently earned, and report recommendations back to the committee.
