Agenda Packets - 2026/04/27 - Laserfiche WebLink

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Item No. 5.D. MaL-J-PWISI VVWW Meeting Date April 27, 2026 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, 2026 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 2026. 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 24.0% of budget through the end of the quarter, compared to 22.6% 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 2025 with unassigned fund balance that is equal to 50.0% of the 2026 budgeted expenditures and transfers compared with 50.4% in 2024. Other Funds: The Street Improvement Capital Projects Fund ended 2025 with a fund balance of$2,415,885. This fund is integral in maintaining the newly reconstructed streets and reconstructing streets still in need. There are no major street projects scheduled for 2026. Other projects in the City include CIPP sanitary sewer lining, storm water maintenance and some City building improvements. Investments & Economy: Investment income to date for 2026 is $128,445 compared with $147,626 for the same period in 2025. The market value of our portfolio for March 31, 2026 was 19,253,872 compared with $19,426,782 for 2025. The Federal Open Market Committee (FOMC) has decided to maintain the target range for the federal funds rate at 3 1�2 to 3 3�4 percent. It seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. Inflation remains somewhat elevated. Treasury securities are presently providing the following rates-of-return: Treasury Securities 2026 2025 1 year 3.680 4.030 2 year 3.790 3.890 5 year 3.920 3.960 10 year 4.300 4.230 30 year 4.880 4.590 State unemployment for January was 4.4%, which compares to national unemployment of 4.3%. Nationally, inflation has increased from 2.4% in 2025 to 3.3% in 2026. The high was back in 2022 at 9.1%.