Wabasha County finance director reports strong first-quarter cash balances, flags possible state and federal budget impacts

Wabasha County finance staff presented the first-quarter 2025 financial summary to the Board of Commissioners, showing healthy investment balances and revenue but flagging possible budget pressures from state and federal proposals that could affect transportation funding.

Finance presenter Gwen reported that the county currently holds $11,386,000 in certificates of deposit across various accounts and that total interest earned in 2025 so far is $291,449. Gwen said staff are staggering maturities to preserve cash flow and watch for favorable interest-rate windows.

Gwen told commissioners, “Total revenue earned for this quarter was $8,438,749,” and noted the figure is higher than the same quarter in 2024 largely because a highway grant or contract payment of about $3,900,000 was received in the quarter. Total expenditures for quarter 1 were reported at $9,194,033.

During discussion, administration warned commissioners that three competing state budget proposals under consideration at the state level could have significant impacts on county finances. County staff said some counties project double‑digit impacts on budgets; Wabasha County expects smaller hits but still raised concern that proposed state and federal changes could shift costs to counties. Staff specifically cited a potential reduction in state transportation funding and increasing costs associated with required environmental work such as wetland delineation and historic‑resource reviews.

Gwen said the county is preparing audit workpapers and will reclassify certain revenues and expenditures to 2024 where required by auditors. Commissioners asked clarifying questions about investment maturities, interest-rate trends and how one‑time grant receipts skew quarter‑to‑quarter comparisons.

No formal action was taken; the report was provided for informational purposes and audit preparation.