Menomonee Falls posts roughly $1 million general‑fund surplus for 2024; SAFER reimbursements shift to 2025

Valerie Emert, the Village of Menomonee Falls director of finance and treasurer, told the village board at its Aug. 18 meeting that the village closed fiscal year 2024 with about $1,000,000 in surplus and a year‑end general‑fund balance of about $11,700,000.

The surplus followed a revenue shortfall of roughly $800,000 (about 2 percent under budget) and a mixture of timing differences, Emert said. Reimbursements tied to the federal SAFER firefighter grant were deferred into 2025, a factor that reduced 2024 intergovernmental receipts by about $1.5 million; Emert said the village expects to record those receipts in 2025.

Why this matters: the village uses months of working capital as a core fiscal metric. Emert said Menomonee Falls’ unassigned fund balance stood at about $9,200,000, leaving the village with roughly 2.9 months of working capital — just under the commonly cited three‑month best practice. Mark Fitzgerald, village manager, told trustees that a sustained drop below that target could affect Moody’s bond rating; Emert noted the village’s current rating is Aa2.

Emert walked trustees through major fund results and departmental drivers. Public safety remained the largest expenditure in the general fund. The village reported savings in several areas — including reduced part‑time wages and overtime in fire due to full staffing on SAFER positions — and overages in inspections, human resources, and equipment maintenance.

Utility funds and capital notes: Emert said about 90 percent of Menomonee Falls’ water supply is purchased from Milwaukee; the village paid roughly $2.1 million to Milwaukee in 2024. Sewer payments to the Milwaukee Metropolitan Sewerage District (MMSD) rose to about $8.9 million in 2024. Emert said the water rates have not been updated since January 2017 and staff plan a water rate study before year‑end; an internal sewer rate study is also planned.

Stormwater utility: Emert reminded the board that the village implemented a stormwater utility fee effective Jan. 1, 2024, to cover stormwater costs that could not be sustained within levy limits. She said the new fee increased operating income for that utility in its first year.

Municipal facilities and landfill revenues: the municipal facilities and equipment fund showed growth in 2024 in part because of debt proceeds tied to the Fire Station 3 remodel. Village staff reported that current landfill capacity projections run to about 2038–2040; Waste Management has shifted some volume to southern county landfills, and the village plans to recast long‑term revenue projections with Waste Management.

Emergency earmark: trustees previously agreed to earmark $800,000 of the 2024 surplus for potential emergency expenditures connected to recent flooding, Emert said.

Questions from trustees focused on timing of reimbursements and the risk to the bond rating if reserves drop. "We were able to end the year with a surplus in the general fund," Emert said. Village manager Mark Fitzgerald added that a downgrade by Moody’s would be "negative" and could affect borrowing costs.

The board did not take formal action on the presentation; staff said the full audited statements and the auditor’s report (Baker Tilly) will be posted to the village website after the meeting.