Muscatine posts $5.5 million general‑fund balance for FY 2025; grants and investments highlighted

Nancy, the city’s finance director, presented Muscatine’s budget‑basis financial statements for the fiscal year ended June 30, 2025, at the Oct. 14 council meeting. "This is the budget basis presentation for the year," she said, and walked council through revenues, expenditures, transfers and fund‑balance calculations.

Nut graf: The city closed FY 2025 with an unreserved general‑fund balance of approximately $5.522 million (about 22% of general‑fund expenditures), grant and donation revenues totaling roughly $11.5 million for the year, and total debt outstanding of about $32.0 million. The finance director and council members highlighted that many operating departments underspent their budgets and that the strong fund balance provides cushion against uncertainty in future property valuations and state revenue limits.

Key figures and takeaways the finance director presented: - General fund: total revenues reported at about $14.7 million; total general‑fund expenditures just over $25.0 million; transfers in (for example, employee‑benefit tax and other interfund transfers) totaled about $10.4 million, resulting in a year‑end unreserved fund balance of $5.522 million after encumbrances. - Fund balance policy: the general fund ended the year at about 22% of expenditures, above the city target and higher than the revised projection used during the last budget cycle. - Grants and donations: total grant and donation receipts were about $11.5 million for FY 2025; examples cited included ARPA and state/federal grant draws for capital projects, the lead‑reduction program and downtown projects. - Investments and interest: cash investments earned higher returns during the year (finance staff reported strong interest receipts versus prior years), with roughly $2.48 million invested on a cash basis and accruals around $2.35 million. - Debt: the city issued state revolving fund (SRF) loans totaling about $7.4 million for waterworks phases and retired roughly $3.7 million in debt during the year; total debt outstanding was reported at about $32.0 million at June 30, 2025. - Areas for attention: the equipment services internal service fund finished the year with a deficit (roughly $134,000) and may need rate adjustments; the finance director said she and staff are monitoring that fund and that FY 2026 rates have been increased.

Council members thanked the finance director for the presentation and asked several clarifying questions about specific funds, timing of grants, and capital needs. The finance director noted that the audit work is separate and will follow later in the audit committee process.