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Council delays approval of treasurer’s report after debate over cash vs. accrual presentation
Summary
Council reviewed the April 2025 treasurer’s report but members disagreed about whether it is misleading because it is presented on a cash basis rather than an accrual basis. After discussion and several abstentions, a motion to receive/approve the report did not pass.
City staff presented the updated treasurer’s report for April 2025, which shows account summaries and investments but is prepared on a cash basis rather than on an accrual basis. The presentation included a note that future reports will include fund balances when the city’s new Tyler ERP financial system is implemented.
Council members raised questions about timing and content. One council member asked whether government code requires accrual accounting; a consultant answered, “The government code is not clear on what the expectations are,” and described the common practice of presenting cash and investment balances while reconciling to government-wide, accrual-based statements once systems allow it. Staff and consultants also said the full accrual presentation will be possible after the Tyler system is fully implemented.
Members pressed staff for additional detail (fund balances by fund and interest rates on individual investments) and debated whether to approve an interim cash-basis snapshot or wait for the new system. The council made a motion to receive/approve the treasurer’s report for April 2025; after roll-call and several abstentions, the mayor stated, “The motion does not pass.” Staff said the report will be revised and brought back when council is comfortable with the format and when system data are available.
