City Council Worksession on Policy, Finance and Infrastructure (In-Person) (Dec 9, 2025)

City Council Worksession Recap: Policy, Finance, and Infrastructure (December 9, 2025)

The City Council held a work session on Policy, Finance, and Infrastructure on December 9, 2025. The primary purpose of the meeting was to review the city’s fiscal health, discuss major infrastructure investments, and review commission appointments. The session focused heavily on the results of the Fiscal Year 2025 audit and the planning for a new transit maintenance facility.

Key Decisions The only formal vote taken during the session was to approve the minutes from the previous meeting. Kim Roney moved to approve the minutes from October 28, 2025, and Antanette Mosley seconded the motion. The motion passed unanimously with a recorded vote of 6-0. No other actions were taken, as the remaining agenda items were for informational purposes or deferred to a future business meeting.

Fiscal 2025 Audit and Financial Health A significant portion of the meeting was dedicated to a presentation on the Fiscal Year 2025 year-end audit, presented by the city’s external auditors and the Director of Finance. The city received an "unmodified" or "clean" opinion, which is the highest level of assurance in auditing. However, the presentation highlighted several financial challenges. The city’s unassigned fund balance ended at 14%, which is slightly below the city’s 15% target and down from 16.8% in the previous year, largely due to revenue impacts from Hurricane Helene.

The auditors identified a material weakness related to an incorrectly recorded invoice in the capital projects fund, which impacted the financial statements. Additionally, several uncorrected misstatements were noted, relating to the accrual of compensated absences and interest rate calculations. The city will also need to correct how opioid settlement funds were accounted for to align with state guidance. Because of the material weakness and the decrease in fund balance, the city is required to submit a letter to the Local Government Commission (LGC) regarding performance indicators.

Transit Facility and Capital Improvements The Council also reviewed updates on the Capital Improvement Plan (CIP), specifically regarding facility investments. Staff presented a plan for a new transit maintenance facility, noting that the current facility is at capacity. The presentation evaluated two city-owned sites: 224 Louisiana Avenue and 360 West Haywood Street. The Council expressed a preference for 360 West Haywood Street as the location for the new facility. Discussions centered on planning for a future bus fleet, potentially doubling the current size to 70 buses by 2040-2050. The project is linked to consolidating police and fire logistics operations. Staff was given the green light to begin preparing a grant application for the "Bus and Bus Facilities Grant."

Commission Appointments The Council reviewed applications for a vacancy on the Planning and Zoning Commission. The document noted that 18 applicants had been validated and were pending review. No action was taken during this work session, as formal action on the appointment is scheduled for the business meeting.

Follow-ups and Next Steps Staff will prepare a letter to the Local Government Commission regarding performance indicators for Council review and signature, likely in January. The external auditors will continue working on the single audit, with a deadline extension granted to February 12, 2026. Staff will begin preparing the grant application for the transit facility and will continue evaluating the 360 West Haywood site. Additionally, Human Resources will conduct analyses regarding compensation adjustments, and staff will review the five-year Capital Improvement Plan in the spring.