Agenda Packets - 2025/05/05 - Laserfiche WebLink

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Item No. 5.E. MOUNDS VIEW Meeting Date May 5, 2025 Type of Business: Consent Agenda Administrator Review: City of Mounds View Staff Report To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: Accept Financial Report for the Quarter Ended March 31, 2025 SUMMARY FINANCIAL REPORT The first quarter financial results are generally as expected. During the year, City books are kept on a cash basis which means that only items that are received are booked as revenue and items paid are booked as expenditures. The City is not anticipating a reduction in State revenues for 2025. One of the greatest challenges has been filling the police officer positions. General Fund: The main source of revenue for the City is property taxes and these come in twice a year. Expenditures are at 23.8% of budget through the end of the quarter, compared to 18.8% last year. Some of this difference is due to the timing of invoices. Most of the General Fund revenues come in late in the second quarter and then again late in the fourth quarter, so it is important to maintain a fund balance that approximates 50% of budgeted expenditures and transfers for cashflow purposes. The General Fund ended 2024 with unassigned fund balance that is equal to 50.2% of the 2025 budgeted expenditures and transfers compared with 54.86% in 2023. Other Funds: The Street Improvement Capital Projects Fund ended 2024 with a fund balance of $2,216,511. This fund is integral in maintaining the newly reconstructed streets and reconstructing streets still in need. The major projects for 2025 will be street improvements on Bronson Drive, Pine Wood Circle and Edgewood Drive, and the annual sealcoating project. Other projects in the City include Tribute Park, CIPP sanitary sewer lining, and storm water maintenance. Investments & Economy: Investment income to date for 2025 is $147,626 compared with $148,926 for the same period in 2024. The market value of our portfolio for March 31, 2025 was 19,426,782 compared with $19,964,179 for 2024. There was little change to investments over the last year. The Federal Open Market Committee (FOMC) has decided to maintain the target range for the federal funds rate at 4'/4 to 4'/2 percent. It seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. Inflation remains somewhat elevated. Treasury securities are presently providing the following rates -of -return: Treasury Securities 2025 2024 1 year 4.030 5.030 2 year 3.890 4.590 5 year 3.960 4.210 10 year 4.230 4.200 30 year 4.590 4.340 State unemployment for February was 3.0%, which compares to national unemployment of 4.1 %. Nationally, inflation has come down from 3.5% in 2024 to 2.4% in 2025. The high was back in 2022 at 9.1 %.