Finance Committee Meeting Summary – July 10, 2025

The Altoona Finance Committee met on Thursday, July 10, 2025, at 4:00 PM local time (2025-07-10 11:00:00+00:00 UTC). The primary agenda item was the review and discussion of the City's Comprehensive Annual Financial Report (CAFR) for 2024, presented by auditor Dan Carlson of CliftonLarsonAllen (CLA). The committee reviewed an unmodified audit opinion and unanimously voted to recommend the report to the Common Council.

Consent Calendar

• Approval of Minutes: The committee unanimously approved the minutes from the August 8, 2024 Finance Committee meeting via a motion by Matt Beer and a second, with all members voting in favor.

Discussion Items

• 2024 Comprehensive Annual Financial Report (CAFR) Presentation: Dan Carlson (CLA) presented the audit summary. The city received an unmodified audit opinion, the highest level. The management letter contained three standard disclosures: annual financial reporting assistance by CLA, audit adjustments proposed during the audit, and a lack of segregation of duties due to the small office staff.
  • General Fund: The fund's cash and investments balance decreased from $10.4M to $4.7M due to the reclassification of approximately $5M in committed funds (Land Acquisition, Tax Stabilization, Redevelopment) from the General Fund to the Capital Projects Fund. Finance Director Tina Nelson explained this provided a cleaner presentation, as these funds are designated for capital or stabilization purposes, not general operating expenses. The General Fund had $7.8M in revenues against $8.4M in expenditures, resulting in a $600,000 overspend from current revenues, driven largely by a $600,000 increase in public safety costs and a $300,000 increase in parks costs. Chair Matt Beer raised concerns about the unassigned fund balance percentage dropping from 89% to 67.3%, stating it was a trend that would require public explanation. Dan Carlson noted that 67.3% remains well above the typical municipal average of 33%. The committee discussed the intentional use of $400,000 from the Tax Stabilization Fund to balance the budget, a step taken due to TID income constraints.
  • Special Revenue Funds: The $620,000 in remaining American Rescue Plan Act (ARPA) funds were fully spent in 2024 on various projects. The Affordable Housing Fund, generated from the closure of TID 2, stood at $6.5M. Staff updated the committee on the pending final audit of TID 3, estimating $4.5M will be distributed to taxing jurisdictions, including the school district, with a target payment date before June 2026.
  • Capital Projects & TIDs: TID 4 balances decreased as project costs exceeded property tax revenue due to the charging of wells 8 and 9 costs to the district. The Neighborhood Container Grant fund ended the year with a negative $100,000 fund balance due to the timing of grant reimbursements. Committee member Tim Lima expressed skepticism about the project staying within budget and requested a full accounting; staff (Tina Nelson, Christian, and Mike) affirmed they had been tightly managing the budget.
  • Water Utility: The utility reported a strong net position with a current ratio of 5.01. Assets increased significantly due to a $1.5M advance from TID 4 for wells 8 and 9. Dan Carlson suggested the city pursue a simplified rate case in the coming years to avoid large rate adjustments and maintain compliance with the Public Service Commission (PSC).
  • Sewer & Stormwater Utilities: The sewer utility saw a change in net position of $242,000 in 2024, lower than the $1.2M in 2023 due to a large capital contribution from governmental funds the prior year. The stormwater utility reported a negative $81,000 change in net position for 2024, driven by depreciation costs from new equipment. The committee discussed the need to closely review and potentially adjust stormwater rates, as they have not been changed in some time.
  • Long-Term Obligations: General obligation debt decreased from $19M to $16M. The lease liability rose due to new enterprise vehicle leases. The Other Post-Employment Benefits (OPEB) liability is decreasing following changes to the police union contract that sunset post-retirement health insurance benefits. The city's debt limit stands at $65M, with 22.5% of that capacity currently utilized, which is a favorable position.

Key Outcomes

• Minutes Approved: The minutes from the August 8, 2024 meeting were approved.
• CAFR for 2024 Recommended to Council: The committee voted unanimously to recommend that the Common Council approve the 2024 Comprehensive Annual Financial Report.
• Utility Rate Reviews: The committee acknowledged the need for a deep review of stormwater utility rates and discussed pursuing a simplified rate case for the water utility in the near future.
• Meeting Adjourned: The meeting was adjourned at approximately 5:47 PM.