Make a note about that.

Right.

But but but if an employee is in fact routinely um overstating their their leave time and that sort of thing, that's something that they would catch.

Yeah, and we can give you kind of we keep that materiality is about the only thing we have that we don't really share with anybody just because we don't want management to come in just right below those levels to commit that.

But kind of on a general level, if you look at total assets of a fund, you can guess it's around five to ten percent of what that number is, is what we kind of deem materiality to be.

And and every firm has a little bit different formula that they use, but essentially at a at a high level, it's judgment as to if this number was misstated by this amount.

Would somebody use these financial investors or bondholders, would they be hurt um with that information?

So yeah.

This is the materiality concept, and then there's the tolerable error.

So that's like insignificant dollar amount that you're like, okay, there's this mistake, but it's tolerable.

We're gonna pass on that because it's not significant to the users of the financials.

Correct.

Yeah, you got it.

Oh yeah, it's a it's a fun business, a lot of judgment, a lot of communication with management.

That's all, yeah.

But we appreciate that's really it.

And if you guys ever have questions, just don't hesitate to reach out.

Appreciate you.

Thank you very much.

Appreciate your time.

Okay, the next item on our agenda is a discussion regarding the FY25 budget closeout.

Yeah, we've got exact documents.

Did everybody get one at the table and then it's gonna pass around to any bio that wants one.

Um what we're highlighting here is as Clint said, Um, we have closed out fiscal year um 25.

We closed the books on fiscal year 24-25.

And and what you see reported here as actual figures is what we have turned over to the auditors.

Um, so I just wanted to highlight a couple of things here in the general fund.

Um, and I have this same information for all of the funds of the city.

I'm gonna send out a few more in your council packets, but in the interest of time, I just wanted to highlight the general fund and I'm gonna uh talk a little bit about the normal forward fund.

Um but again, if you have an interest in any other funds, let me know we'll send you this sort of detail as well.

Um so here in the general fund, which as you know is the largest fund of the city, and by definition is the uh the fund that accounts for all of the revenues and expenditures that are not accounted for someplace else.

That's the actual statutory definition of the general fund.

Um couple of things I wanted to highlight here.

Uh in column A, you see where we estimated uh the revenues uh for fiscal year 25 for sales tax on line four, and then in column B, you see the actual uh revenue.

So we're about a million eight short of where we estimated we would be for that particular revenue source.

Um the other one is in the other revenue category on line 10.

We were quite a bit short of our estimate there.

Uh that is the largest things in that category, and again it's a category of revenue, but the largest things in there are the um convenience fees and uh uh fees for um technology fee that the courts charge, those sorts of things are in that category, and we were quite a bit short, basically because there's a major um uh credit card charge that we are not charging to the public anymore.

Um we are not passing that fee on because it was reduced from our merchant processor.

So um that that is a revenue source that's probably gonna remain down where it has been, and we'll correct that in next year's budget.

Um how much that is off the top of your head, how much that fee is um I'm only looking at the category, but I'm gonna say that that particular fee is probably budgeted at about 750,000.

What uh if we were charging that to residents, what would that be?

Is it two dollars or it's it was three dollars.

It's three dollars.

So the city is eating three dollars per transaction.

Okay.

Um on line 22, you see that um we were quite a bit short of our capital outlay revenues.

Um if you drop down to line 37, you see that that's basically a money in, money out where all of the capital equipment expenditures that we budget for, um, where equipment is gonna be booked to the general fund, uh, but the revenue is reimbursed from the capital fund.

So where we were short of revenue, we were also short of expenditure.

So it really doesn't have any impact on the bottom line.

Um the bottom line now to see on line 16 for revenue.

We were about $4 million short of our estimated revenues, and we were about $4 million short of our um estimated expenditures on line 40.

Um there is a fairly significant difference in um our expenditures from transfers um on line 55 and a couple of those that I'll highlight is uh uh we estimated a transfer expenditure about 2.6 million dollars into the public safety sales tax fund, and that was only about 212,000.

We did not uh estimate that we would have to subsidize or make a transfer to the Westwood fund, and we did uh of about 260,000 dollars to make that fund um zero out at the end of the year.

Same thing in the WIFAC fund.

Um whether it's over expenditures or under revenues in those two funds, just know that the general fund had to make up some losses in the YFAC fund and the Westwood Fund.

Um dropping down then to the bottom line, our expenditures are about six million dollars short on line 61 of estimate on the whole.

Um all of this sort of came out in the wash, though, uh on line 63.

You see that we estimated that we would have a loss of about 5.6 million dollars.

We actually had a loss of about 5.8 million dollars in the general fund.