Officials review FY2023 school true‑up, audit status and FY2024 revenue outlook

City and school officials reviewed the FY2023 school transfer reconciliation and a preliminary FY2024 revenue update. Staff said the final FY2023 numbers differ from earlier budget estimates and that a residual true‑up payment to the schools remains pending; staff described components of school revenue (real estate, personal property, the 1¢ meals tax and a courthouse‑related revenue piece) and outlined how those flows translated to the final calculation.

The finance presentation noted projected FY2024 collections by source and flagged timing issues: sales‑tax receipts were described as lagging, lodging tax receipts follow month‑to‑month timing and some collections trail the reporting month. Staff said they had applied prior excess funds in the past to certain school expenditures (for example CSA or SRO support) and suggested options for how to handle the current true‑up, including carrying funds forward and reconciling in the next fiscal year.

Staff also provided an audit update: the conversion from the legacy finance system to a new platform (Venus) produced beginning‑balance and trial‑balance discrepancies that staff are working to reconcile. Misposted revenues in a clearing account (described in the presentation as approximately $172,000) are being reclassified; auditors will resume once staff finish the reconciliation.

Meeting participants asked whether past choices (applying excess funds) should be repeated or if the school transfer should be paid immediately; consensus was to continue the conversation and return with a recommended approach to the true‑up and any carryovers.

Next steps: staff will finish the reconciliation work, coordinate with auditors on timing and recommend an approach for handling the FY2023 school true‑up and the FY2024 contingency plan for state revenue variations.