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HomeMy WebLinkAbout2025-05-19 Finance Committee Minutes • . � �S� • �U ' � �� •., �� .W � Finance Committee Agenda May 19, 2025 Committee Members in Attendance: Fish (Chair), Beck, Deane, Fournier, Tremble Non-Committee Members: Pelletier, Leonard Staff: D. Laurie 1. Bids/Purchasing a. Mowing — Maine Business Enterprise Park — Community & Economic Development— 207 Property Maintenance and More, LLC - $28,400 first year ($90,970 three year) Councilor Tremble made a motion to approve, seconded by Councilor Fournier; motion passed unanimously. b. Union Street Resurfacing — Engineering — Hopkins Paving LLC - $626,021 (Local Share $62,602) Councilor Fournier made a motion to approve, seconded by Councilor Tremble; motion passed unanimously. c. Hangar poor, Building 600 — Airport— Chiles Contracting - $450,130 Councilor Tremble stated he wasn't opposed but asked if vendors are local. City Manager Debbie Laurie responded that she wasn't aware but believed that Chiles may be. Councilor Fournier made a motion to approve, seconded by Councilor Tremble; motion passed unanimously. 2. Interim Financials— 3rd Quarter 2025 City Manager Debbie Laurie reviewed the financials provided in the packet for the third quarter for FY 25. She reviewed items with a variance of 10% or greater including permits, fines and other. Explanations included the way certain items are receipted, accounting rules for how taxes are counted as revenue once tax bills are issued, and increased permits. Councilor Tremble asked why revenue sharing was down in March to which the response was based on receipts of the funds being from the month or two before which creates a cyclical nature of how such items are reflected in the statements. City Manager Laurie also reviewed the expenditure side including: central services will cycle through based on when items are billed rather than done which can create a timing issue. She also reviewed vacancies in Human Resources, how Fleet Services bills the departments at the start of the year, and how insurance is paid out of one account and then billed out to the appropriate department, which needs to be caught up. She also touched on the pension obligation bond, transfers to fund capital projects (moved in July every year), and other agencies such as county tax (paid yearly end of October/early November). 3. Review of General Fund - )une 30, 2024, Unaudited Annual Financial Statements — Balance Sheet, Budget to Actual, Fund Balance City Manager Laurie reviewed the draft balance sheets provided in packet for draft audit and noted an item was inadvertently left out of packet, so that will be updated. She stated that while they are a draft, the numbers don't typically change at this point as they have been tested by the auditors and what is left is due to compliance requirements with federal grants, as well as ensuring footnotes and disclosures are accurate. She reviewed the income statement including total revenues which includes the schools but must be held separate and shared some examples. She explained that when you remove education from the total revenue, then the City's actual revenue exceeded budget by $1.2 million or a 1.3% variance and explained that that percentage is good. She explained why it was up such as more collected in excise taxes than expected as well as a few other factors. City Manager Laurie then reviewed the expenditure side again touching on education and the variance. She also reviewed the last page and explained that the large numbers are transfers to reserves. Lastly, she touched on fund balance (goal is to have one to two months for fund balance) and how it can provide some additional coverage for school as well. Councilor Deane asked if the fund balance percentage was higher last year. City Manager Laurie explained that it was and that some was moved over to reserves which is now being proposed in this year's budget to fund capital needs. Councilor Beck asked about the school's revenue number being so large, City Manager Laurie stated she believed it was related to COVID funding but would get that answer.