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City staff present FY26 cash-management review; council approves recommendation to forward report
Summary
City finance staff reviewed the fiscal-year 2026 cash-management report, outlining reserve targets, investment returns and capital-expenditure timing. Council voted to recommend the report for approval at the next council meeting.
City finance staff presented the fiscal year 2026 cash-management report to the City of Cedar Falls Committee of the Whole, reviewed reserve policies and investment returns, and sought council direction to forward the report for formal approval.
Lisa Rolling presented the annual review, saying the city’s portfolio includes checking at Farmers State Bank, three liquid money-market accounts, and certificates of deposit. Rolling reported a current certificate-of-deposit rate of return of 4.6%, down from 5.29% the previous year. She described the city’s reserve targets: general fund reserves of 15–25% (with staff previously directed to target the upper end, 20–25%), refuse 20–30%, sewer 65–75%, street construction 20–30% and stormwater 10–20%.
Rolling said the city maintains an emergency reserve fund with a target balance of $1.5 million to $2 million and that the city will “keep an eye on our cash reserves” as it monitors potential revenue interruptions and the rollback of state backfill scheduled to end in fiscal year 2029.
Council members asked follow-up questions about the city’s bond-rating process, whether credit agencies have ever said the city holds “excess” reserves, and how reserves could be used for short-term needs. Rolling replied that agencies typically view reserves positively and suggested staff could ask rating agencies for additional comment.
A council member asked whether the city’s emergency reserve balance remained near the $1.5–$2.0 million target; staff replied that the emergency reserve fund was “about right at that $2,000,000.”
After discussion, a council member moved to recommend the cash-management report for approval at the next council meeting; the motion was seconded. The council approved the recommendation by voice vote (all in favor). There was no recorded roll-call tally in the transcript.
The presentation included a reminder that the city’s fund balances will be finalized with the audit numbers received in late August or early September and that staff plan to continue monitoring inflation, supply-chain and tariff impacts for capital expenditures. The committee forwarded the report to the full council for formal adoption at the next meeting.
