Committee backs budget cleanup resolution to align 2025 revenues and expenses

The Marshfield Finance, Budget and Personnel Committee on Dec. 16 recommended City Council approve Budget Resolution 25-2025, a year-end amendment to the city’s 2025 budget to match revenues and expenses that differed from projections.

Finance Director Jennifer Zelensky told the committee the resolution functions as a “kind of a cleanup, activity where things have happened throughout the year that we didn't anticipate.” She said the changes reflect higher-than-expected collections in some funds and new or shifted expenses that were not included in the adopted budget.

Key changes the committee reviewed include: increasing the room-tax professional services account by $70,000 with a $30,000 transfer to the Parks and Recreation capital outlay fund to reflect the 70/30 distribution to the tourism commission and capital improvements; a $40,915 increase in the economic development fund land account to record a city repurchase of a lot in the Daniels subdivision; a $105,000 increase to the debt-service fiscal agent charges account to record management fees tied to 2025 borrowing; transfers to cover debt-service payments after Tax Increment District (TID) 5 closed (including $40,000 to principal and $3,564 to interest); and a $380,000 increase in repairs and maintenance to record infrastructure work in TID 13 that carried into 2025 and associated developer incentive rebates ($95,664) that were not budgeted.

Committee member Mike asked staff to explain how excess room-tax revenue would be split; Zelensky said the unanticipated amount would be treated the same way as the budgeted item, with 70% allocated to professional services for the tourism entity and 30% transferred to capital improvements. On the Daniels subdivision buyback, she said the city will reduce and recalculate the economic development reserve based on the current number of lots sold without development.

Motion and next steps: Committee member Niles moved to approve the resolution and a colleague seconded; the committee adopted the recommendation and forwarded it to the City Council for consideration.

The committee also recorded that the budget adjustments reflect both timing differences and obligation recognition and will be incorporated into the city’s audited financial statements when finalized.