Staff outlines accounting fixes and commits to audit past deposits and provide clearer monthly reports

Staff described the building commission's role and recent bookkeeping changes, saying "the purpose of the building commission is to provide an avenue for the city to borrow funds" and explaining that utility and maintenance bills should generally be paid from the city's general fund rather than commission funds. Staff said they had adjusted records so those expenses would no longer be paid out of the commission account.

Commission member walked through transaction timing and amounts, noting "we do 2 ACH debit payments out for $16,667 a month" and questioned why some months show combined deposits around $37,000–$38,000 while others show a single $27,000 deposit that staff characterized as a catch-up payment to cover missed months. Staff agreed to "go back a year and make sure" and to use the fiscal-year '24 forward (with the 2023 audit as a baseline) to reconcile deposits and reimbursements. Staff also agreed to prepare a monthly running-balance/year-to-date report and a loan-balance summary for commissioners.

Commission members and staff discussed appropriate reserve levels for the commission account. Commissioners suggested keeping a one-month buffer equal to a typical loan payment (roughly $27,000) and asked staff and the accountants for best-practice guidance; staff said they would check whether sweeping funds back to the city or holding a large multi-hundred-thousand-dollar reserve was required by city council direction or state law. The next steps recorded in the meeting: staff will audit past deposits/reimbursements (fiscal year '24 forward), confirm classification of utilities and other charges, and deliver a simpler monthly report showing running balances and loan balances to improve oversight.