City Financial Report Shows Record Interest Earnings and Budget Preparations for 2026

Shelton City Council's recent meeting on July 15, 2025, highlighted a significant financial boost for the city, with local government investment accounts showing impressive returns. The city currently holds $6.5 million in US Bank bonds and $18.7 million in the Local Government Investment Pool (LGIP), which is yielding a robust 4.38% return. This has led to an unprecedented total interest earnings of $638,000 for 2024, a notable increase from $412,000 in 2023.

City officials are strategically investing maturing US Bank bonds into the LGIP to maximize returns, although concerns about potential interest rate changes loom. The Federal Reserve's anticipated decisions later this summer could shift investment strategies back towards US Bank bonds.

In addition to financial updates, the council is deep into preparations for the 2026 budget, with special recognition given to Hannah Mareglot for her contributions as the new budget coordinator. The city is also gearing up for a federal single audit of its grants, scheduled for completion by September 30.

The financial report indicates a favorable variance in the general fund, with an ending balance just under $6 million. While property tax revenues are on track, sales tax figures are still pending due to delays in state reporting. The city remains vigilant in monitoring revenues and expenditures, aiming to maintain service levels while navigating the financial landscape.

As summer progresses, city officials anticipate increased activity and potential revenue growth, reinforcing their commitment to prudent fiscal management and transparency for Shelton residents.