Finance Committee - August 19, 2024
The Regular Meeting of the Finance Committee of the City of Fargo, North Dakota, was held in the Commission Chambers at City Hall at 12:00 p.m., Monday, August 19, 2024.
Call to Order:
Commissioners present or absent were as follows:
Present: Kolpack, Piepkorn, Preston, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding
Standing Items:
YTD Financial Review and 2Q YE Financial Projection
Ms. Thompson said revenue is trending above budget and expenses are trending below budget, so the year-to-date stands at a positive $2.4 million. Quarterly projections are for a break-even year, she said, and interest income is favorable and will help offset the Transit offset being made later this year, she said.
Economic Indicators: Sales Tax Receipts
Ms. Thompson said the most recent year-to-date sales tax through June shows it trending at 2%.
2023 City of Fargo Audit Presentation:
Brian Stavenger, Eide Bailly said the audit is for the year ending 12/31/2023. He presented an overview of the full Annual Comprehensive Financial Report (ACFR), which is 200-300 pages.
Fall 2024 Appropriation Bond Timing and Logistics:
Steve Scharff, Baker Tilly, shared information around the annual appropriation bonds for the remaining portion of the NP parking garage and a number of capital items. He said two series of obligations are proposed: 2024F Bonds (taxable) and 2024G Bonds (tax-exempt) and he shared a list of the 2024G Bonds projects financed. He said the numbers are preliminary based on market information and $11.82 million of the 2024G Bonds is for the purchase of the BSE PD building.
2025 Budget Discussion:
Ms. Thompson said there have been several iterations of the 2025 Budget and at the Special Meeting on August 12th, the mills were set at 57; 2 mills for the Airport and City mills were set at 55. The COLA is to be determined, she said, a 3.5% COLA would have a $400,000.00 effect on the budget; a 4.0% would have an $800,000.00 effect and a 4.5% would have a $1,200,000.00 effect.
Mr. Redlinger said there are follow-up questions and he wants to provide the most relevant timely information to the Board. He said with the millage established, he would like to see a COLA target, an expenditure reduction target and a revenue target. He said items to be looked at include the COLA and compensation, departments and programs. He said there will be a relook at expenditures and revenues for non-public safety departments and outcomes relative to cost for DEI and Communications and Government Affairs (CommsGA). Market analysis is being done on the buildings housing the DEC and former Health Department, he said.
Ms. Thompson said the next steps will be to discuss the topics and continue dialogues with the departments. She said she would like the Finance Committee to meet on a bi-monthly basis in the future. The budget public hearing is set for the September 16, 2024 Commission meeting, she said, with final budget approval on September 30, 2024.
Adjourn:
The meeting adjourned at 1:10 o’clock p.m.