歪歪漫画

BEMIDJI 鈥� During its meeting on Monday, the focused on the 2023 financial report, which outlined the city's financial status including fund balances, budget surpluses and areas of over-expenditure, prompting detailed discussions.

Finance Director Donna Coe started off the presentation by providing a breakdown of the city's 2023 revenue figures.

The city manages its finances through several designated funds, each with a specific purpose. The General Fund covers day-to-day operations like police and fire services, while Special Revenue Funds and Debt Service Funds are set aside for targeted projects and repaying loans. Enterprise Funds operate more like businesses, handling utilities and liquor stores and funds focused on long-term infrastructure projects.

The city wrapped up 2023 with a surplus of $112,789 in its General Fund. This means that after covering all its planned and unexpected expenses, there was a bit of money left over.

Originally, the city thought it would end the year with about $164,000 left, but mid-year adjustments lowered that expectation to $105,595. By the end of the year, the actual surplus was slightly higher than anticipated.

Coe explained that the city earned $565,343 more than expected, thanks to higher franchise fees and other revenue sources. At the same time, expenses were $558,149 more than budgeted due to higher costs for staff, paid time off and benefits like retirement accounts.

After balancing these extra earnings and extra costs, the city still came out ahead, leaving the $112,789 to be allocated for future needs.

Coe recommended using the remaining surplus amount to address budget needs in three key departments:

• Police Department: $43,420
• Fire Department: $36,888
• Parks and Recreation: $32,481

The allocations were based on the departments鈥� contributions to net revenue and areas of demonstrated need.

Coe also emphasized the importance of adhering to the city鈥檚 fund balance policy, which serves as a financial safety net.

"The city's charter states that the fund balance policy reserve should be set at 50%," she explained. "And the primary purpose of that is to maintain a good cash flow for emergencies, natural disasters and any unanticipated expenses," Coe added.

The council also reviewed debt service funds, special revenue funds and enterprise operations, including municipal liquor sales. Liquor store revenues totaled $8.4 million for the year, with expenses nearly matching due to transfers of profits to other city initiatives.

Council members voiced appreciation for the transparency of the process but requested additional breakdowns of professional service overages in future reports.

At-Large Councilor Audrey Thayer expressed frustration over receiving the financial documents on the day of the meeting.

鈥淭his document鈥檚 coming in front of me right now, and my personality is I have to go through it and list my questions,鈥� Thayer said. She recognized the challenges of compiling financial reports but emphasized the importance of having adequate time to review materials.

Coe acknowledged the delay, stating, 鈥淚 totally understand. This should have been out to you sooner,鈥� noting also that she would be available for any questions.

Ward 3 Councilor Ron Johnson entertained a motion to approve the resolution to designate the surplus funds to what Coe had recommended. The motion passed unanimously with a 7-0 vote.

City Manager Rich Spiczka concluded the meeting by summarizing efforts to reduce the 2025 levy increase to 6%, citing savings from health insurance adjustments and strategic use of ARPA funds. His proposed allocations, including HVAC upgrades and support for community projects like the Sanford Center marquee, received general approval from the council.