10-21-25 City Council Meeting Packet

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STAFF REPORT DATE:October 21, 2025 TO: Mayor and Council FROM: Clarissa Hadler, Finance Director Nina Kraemer, Finance Coordinator AGENDA ITEM:3rd Quarter Financial Reports CORE STRATEGIES: ☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future ☐ Managed Growth BACKGROUND: Staff has prepared the 3rd Quarter Financial Report for review by the City Council. ISSUE BEFORE THE COUNCIL: Does the City Council have any questions about the 3rd Quarter Financial Report? DISCUSSION: The Budget vs. Actual for 3rd Quarter 2025 is attached. YTD revenues and expenditures will fluctuate widely throughout the year depending on peak periods for each activity. Below are a few general notes regarding various items. Revenues: Tax revenues are receipted in July and December. General Fund non-tax revenues are expected to be higher this year compared to last year mainly due to increased building permits due to the two school construction projects. Utility Bills are reflected the following quarter due to the timing of mailings and payments. Interest earnings are typically allocated at year-end. Expenditures: Expenditures reflect a combination of ongoing expenses and items that are one-time payments per year. As such, year-to-date percentages on expenses other than personnel will fluctuate significantly. We closed two budgetary departments: communications and city hall. The communications expenses are incorporated into the administration department. This summer we’ve added a separate Water Treatment Dept to track expenses for that facility moving forward. This is assist with reporting if we receive grant funding from MPCA. Additional information regarding planned/budgeted changes is available in the 2025 Budget reports from the December 17, 2024 Council meeting, or upon request. FISCAL IMPACT: As noted. ATTACHMENTS: 1)Quarterly Financial Reports