Midway council approves budget amendment; auditors report fund-balance finding

Midway City Council voted to approve Resolution 2026-66, a fiscal-year 2026 budget amendment presented by finance staff, and instructed staff to monitor and move funds held at Grand Valley Bank into accounts that earn interest.

Nancy O'Toole presented December financial statements and flagged that the general fund held approximately $3.3 million in unassigned cash. Councilmembers expressed concern about idle cash sitting in an account that earns little or no interest; Nancy said staff planned to transfer funds and would provide updated statements.

Ben Probst of Gilbert & Stewart presented the city's independent audit for the fiscal year ended June 30, 2025. Probst said the audit opinion concluded the financial statements "present fairly, in all material respects," in accordance with U.S. GAAP. The auditors reported one state-required finding: at the fiscal-year end the city's governmental fund balance exceeded the state threshold of 35% of total annual revenue by roughly $434,000. Probst said this was a year-end snapshot and reminded the council that fund balances fluctuate throughout the year.

Council opened a public hearing on the budget amendment, received no public comment, then moved and unanimously approved the resolution. Council also directed staff to transfer a portion of the funds out of Grand Valley Bank and to watch fund balances for compliance with state guidance.