Yelm City Council Studies Current Financial Report of the 2021-22 Projected Budget Cycle

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Yelm City Council members were briefed on how the city is tracking with the 2021-22 projected budget cycle, which had a beginning balance of almost $300,000 more than the estimated $1.37 million in a June 1 study session.

Stephanie Dice, the city’s finance director, said in a presentation that the uptick was made possible because of cost savings and COVID-19 related belt tightening by city staff, as well as from increased sales, and business and occupation (B&O) tax revenue.

“What we did was we looked at the financial information for the first four months of this year, but in doing that we did calculate the actual beginning fund balance for 2021,” Dice said. “As we have been scrubbing through the numbers … we realized that (the) general fund actual beginning fund balance for 2021 is actually $295,000 more than what you estimated than when you put the numbers together (for the 2021-22 budget.)”

As a result, Dice said the city’s ending fund balance reserve of 15 percent of operating expenditures has been met, which is a number consistent with Yelm’s financial policies.

So far, the Yelm general fund’s operating expenditures have reached 29 percent of what has been budgeted, something that Dice said was expected given the numbers are based on the first third of the year.

The city council will make an official quarterly financial update statement at the June 22 council meeting and will also vote on an amendment to the budget. They will review the upcoming budget’s development schedule with the finance committee, update the financial report reflecting recommendations made by an independent accountant and will prepare for the upcoming audit as well.

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Susan

This is good news to hear. I was becoming worried as a citizen over the past couple months while watching council meetings about the budget and private company hired to help with our budget. I do feel the city administrator owes an apology to the previous finance directors who he categorized as " not seasoned" and "inexperienced" given the extra money had to come from somewhere.

Friday, June 11