Council asks staff, auditor to reconcile holding reports, identify excess reserves for CIP

During a special audit presentation, Mayor Stanley pressed staff and CLA for a clear reconciliation between the quarterly investment-holdings report and the amounts presented in the draft ACFR. "If you look back at that report, it roughly held 585,000,000 in it," the mayor said, urging an itemized 09/30/2025 holdings report that separates restricted (bonded) funds from unrestricted cash.

Scott Kerschnak of CliftonLarsonAllen pointed to note 3 (deposits and investments) in the draft and offered to work with Katrina and finance staff on a reconciliation. CLA also read the revenue-bond-reserve language for water and sewer and said the ACFR shows a revenue bond reserve of $4,304,568 at 09/30/2025.

Finance staff confirmed auditors requested that some accrued interest be reported at market rather than at cost, which increased reported investments by roughly $2 million. Council members asked whether excess reserves are automatically rebalanced; staff explained rebalancing and appropriation require council action and are handled during the budget/appropriation process rather than by automated software moves.

Mayor Stanley and staff agreed the city will prepare a reconciled, itemized investment holdings report and that staff will deliver a CIP work product — listing project numbers, descriptions, appropriated amounts, actuals and remaining balances — within approximately one to two weeks so council can determine whether funds can be reappropriated to other projects.

CLA offered to validate the reconciliation and the commitment detail that supports the ACFR tables. The requested reconciliations are follow-up items; no final appropriation decisions were made at the meeting.