City Council Meeting Date: June 2, 2026
To: Mayor and City Council
From: Finance Director, Brenda Angelstad
Title
2026 First Quarter Financial & Investment Updates
Body
Action Requested:
Discussion only.
Summary Report:
Attached are the First Quarter 2026 Financial and Investment Updates. The Financial Update is prepared by Abdo and the Investment Update is prepared by PFM Asset Management.
Results are as expected. A few items of note.
• Taxes show as underbudget for the first quarter, this is typical as taxes are collected twice per year, with the majority collected in the second and fourth quarters.
• Fire shows as overbudget, also related to the timing of payments to NAFRS, is on track for the year.
• Pool Operations, both revenue and expenditures are lower than budgeted, which is expected as this is a seasonal amenity.
• Ice Arena Fund balance decreased as construction costs are paid.
• Water Fund balance increased as we sold Water Utility bonds in the first quarter.
• The Federal Reserve cut the target range for the federal funds rate twice in 2025 to a three-year low of 3.75%-4.00% currently. This may result in lower investment earnings as yields move lower, but it also results in lower bond rates on debt issued.
Finance Director Brenda Angelstad will provide a short summary at the meeting and be available if there are any questions. The financial updates previously were provided to the Council Finance Policy Subcommittee that was disbanded in 2025.
Alternative Options:
Not applicable.
Financial Impacts:
Included in background materials.
Tentative Timelines:
Reports will be submitted for first, second and third quarters, fourth quarter will be submitted in conjunction with the completion of the annual audit.