Finance director outlines general fund revenues, operating reserves and pending amendments

Finance Director Suzanne Coward presented the Central City Council with the draft general fund and discussed revenue assumptions, the city’s committed operating reserve and several line items still pending final figures.

Coward said the general fund is funded primarily by the city’s 2% sales tax and other streams including insurance premium tax, industrial tax and auto sales tax. She described the operating reserve account as “committed funds not restricted funds” and said it was set up to cover operating expenses for about a year in case of an emergency that materially reduces revenue.

On revenues she told the council staff projected a 3.5% increase in sales tax for the coming year based on recent trends and said figures shown in green are amendments to the current fiscal year while numbers in blue are still pending final confirmation. Coward noted the administration will make transfers before the end of the fiscal year if needed to cover expenses.

Council members asked for clarification on non‑spendable fund balance items; Coward explained those typically reflect current accounts payable and receivables. On administrative‑hearing fines and fees, Coward said several large assessments had been recorded this fiscal year and were showing in accounts receivable; she explained liens have no expiration date but sales and sheriff’s‑sale outcomes can reduce the collectible amount.

The finance director flagged blue‑lined entries in judicial and administrative cost lines as awaiting final invoices (for example, administrative hearing costs and legal estimates) and said she expects to finalize those numbers before the next meeting. She also explained how grant revenues are handled: the city will amend the budget when state or federal legislation or grant awards are received so those receipts and expenditures can be recorded.

On rent income Coward said the budget includes two months’ rent from a municipal services contractor in anticipation that city hall will be ready around the same time next year; she described the estimate as based on a fair market per‑square‑foot approach and said the city prefers transparency over offsetting internal expenses.

No formal votes were held; council members directed staff to return with any final invoices, updated grant award information and a reconciled one‑page summary of fund totals for easier review.