All right, go up to no Welcome.

I'll call the May the 19th Finance Committee meeting to order.

In presence, we have Mayor.

Council President Dutch, Council Member Ect.

I haven't seen Erica, maybe she's coming on.

On the finance team, we have Kisa Pose.

Looks like Debbie Shaab is also on Sarah Maga.

So thank you so much for joining our council committee finance committee meeting.

Today we have one item.

Oh, I see Erica Banet has come on.

I see there's a one item on the agenda.

Alright, there were a couple more, but uh there are some scheduling uh conflicts.

So we need some a little bit more time to work on other items.

So on today's agenda item, we only have one item, which is March uh 2026 uh quarterly financial report.

So I think the electrical goal is not available.

So thank you, Kisha, for stepping up.

You want to take us through the report?

Sure.

Well, uh, Council Member Chen.

Um just overall commentary regarding the month's results and our year to date.

Uh the overall fund balances have improved um through March in that we are seeing additional funds to by 1.16 million to the total fund balance.

Um, that is all funds when we speak of it that way.

That is primarily driven by utility fund increases, um, showing respectively um about a 25% positive movement with those.

We're seeing an additional 1.659 um million to the water utility and 1.257 million to the stormwater utility.

Um part of that balance is due to the inner fund loan and the payment that we have been making from the general fund.

So total between those two funds, about 800,000 of that is moving from the general fund to the um utility funds from our inner fund loan.

Our general fund expenditure um expenditure is still being well controlled.

We are below budget to what we would expect for March, as well as the revenue trends have been upticking slightly, primarily driven by the um sales tax revenue that we've been seeing.

Um that's been coming in a little bit higher than we had expected and a little bit higher than last year.

So that's good news.

It is a trend we do want to continue to watch, and we don't want to be too optimistic about it yet, and we'd like to remain conservative regarding that.

Um there are some over expenditure in the hotel motel uh fund that looks to be uh correction that may need to be adjusted between expenses from 25 or 26 or how the biennium is impacting that.

So that should come into line appropriately.

Primarily our expenditure reductions in the general fund are due to vacant positions.

Um we have a vacance, we have about 26 vacant positions in the city citywide right now.

Um and then I already mentioned that we've begun paying the interfund loan, and that's impacting the fund balance in the general fund um negatively and positively in the utility funds.

Uh I also wanted to address the question that came up regarding the chart that was not included in this month's report that had been in the last month's report.

Um with the with director Gould out and um the staff working on still um you've still within our ERP transition as well as the ACFRO this month.

It um understanding the methodology and the correctness of that report.

We felt that we would prefer to have a little more time with it, and we will work to get that for sure in our next month's report again, and also um if available sooner, if we can provide it for March, we will.

Um, but granted that that's not included.

We can infer some general health regarding our cash flows based on what's going on in the general fund.

We show revenues are ticking up ahead of pace, and we showed that expenditures are a little bit behind pace.

So that would indicate that we are seeing a little bit more fund um balance at the end of the day.

And if that trend was would if we could maintain that and the trends continue, um, we would expect that that would mean in regards to budget, we may um come in ahead of budget regarding our ending fund balance at the end of the year.

Um questions that I can answer, Erica.

Gosh, I couldn't get it to unmute.

Okay.

You knew I'd have a question.

So uh Sakisha, I really appreciate you putting this together.

And I know the staff was already tight, and now with Director Gold out, it's even more tight.

So I I appreciate the fact that you're able to get these done and still in a timely manner and it's complete and thorough as you have done.

So thank you very much for for what you've done here.

Um of the things, and I think the reason that we were interested in the cash flow report, and it may not even necessarily be that exact document.

It's just uh one thing I really clear on is that we are really good at retrospective, um, kind of looking at what we have done, and I think we've got that uh accounting uh rear in spades.

But one of the areas that I feel like we need a little more help as policymakers is more of that a visibility into where we're headed and operational conditions.

So when I hear you say things like we're trending down here and we're trending up there, what I would love to see is the actual like capital expenses mapped out that we know this is gonna hit in Q2 or Q3, or it's like literally planned for events where we're gonna have big expenditures or big influxes of grant fundings or whatever, like so that we it's not like assuming all things remain the same as March because we know that the conditions go up and down, and what I'm interested in looking at from a cash flow perspective is where I know we've already busted through our reserves, but what's kind of that minimum safe threshold of funding we need to make sure month over month that is still in the account.

And if looking ahead, we see oh, there was an expense that was supposed to happen here, but it's happening later, and it's happening now in a month where our cash flow is already low.

You know, what might the impact of that be?

So that we could start to make some policy decisions to help us avoid kind of falling off the cash flow cliff, if you will.