City Council Meeting Date: November 17, 2026
To: Mayor and City Council
From: Finance Director, Brenda Angelstad
Title
2026 Third Quarter Financial & Investment Updates
Body
Action Requested:
Discussion only.
Summary Report:
Attached are the Third 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 and Intergovernmental revenue show as underbudget for the third quarter, this is typical as taxes and Local Government Aid (LGA) are collected twice per year and the remaining amount is expected to be collected in the fourth quarter.
• Election expense is favorable at the end of the third quarter, but expects to be on budget at year-end as the majority of expenses for the election occur in the third/fourth quarter.
• Community Development zoning code expenses expected to increase in Q4, however not to full-year budgeted levels. A portion of 2026 budgeted costs are expected to roll into 2027.
• Cash held in Capital Funds Projects decreased, primarily attributable to the Ice Arena Project construction spending as the project is nearing completion.
• The Federal Reserve raised the federal funds rate by 25 basis points in September and left the rate unchanged at the October meeting. The investment core portfolio at PFM earned 3.83% during the third quarter and the 4M money market fund is earning 3.9% as of 11/3/26.
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Alternative Options:
Financial Impacts:
Included in background materials.
Tentative Timelines:
Reports will be submitted for first, second and third quarters, fourth quarter will be submitted as part of the annual audit.