Finance director presents Q2 update: ARPA coding issue, investment gains and a DOT grant timing note

Alina from finance presented the city’s Q2 financial update, walking council through beginning fund balances, midyear actuals and notable variances.

She said the baseline uses unaudited 2025 ending fund balances and that investment income has pushed several funds above budgeted revenue. On the American Rescue Plan Act (ARPA) fund, she reported expenses had been coded to ARPA in excess of the budgeted available amount; those overspent costs are expected to be covered by the general fund and were recorded as about $147,000 as of June 30. Alina said the city will clean up coding and move the expenses back to the general fund to avoid federal compliance risk.

Alina also noted the capital projects revenue total for 2026 included a $5,020,000 U.S. Department of Transportation grant that will not occur in 2026; the grant will be reflected in the 2027–28 proposed budget as $4,020,000 in 2027 and $1,000,000 in 2028. She drew attention to some high percentage‑of‑budget figures driven by investment income and timing of billings, and said finance will provide updates as audits and year‑end amendments are completed.