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Council approves Bay City quarterly financial and investment report; staff projects reserves above policy
Summary
Council approved the city’s quarter-ending June 30, 2025 financial and investment report after a presentation showing general- and enterprise-fund reserves above policy and higher investment earnings compared with the prior year.
The Bay City Council approved the city’s quarterly financial and investment report for the period ending June 30, 2025, after a presentation by finance staff on revenue, expenditures and investment performance.
Jennifer Leverett, the city’s finance staff member who presented the report, told council that the general fund revenues through the quarter totaled about $15.8 million, or 83% of budget, with property tax collections at about $5.3 million (96.78% of the property tax budget). She said sales tax receipts were down about 1.9% compared with the same quarter last year but that staff still projected ending sales-tax receipts would exceed the adopted budget. "We are projecting that we are gonna beat our budgeted sales tax number," Leverett said.
Leverett said general-fund expenditures were about 68.3% of budget and that the audited beginning fund balance of $5.6 million left the city above its 25% reserve policy target. "After audit, our general fund beginning cash position was 5,600,000, which currently represents about 26% of that," she said. For the utility fund, revenues were at 82% of budget and expenditures about 61%.
On investments, Leverett said the city’s portfolio had an average book yield of about 4.13% and was highly liquid, with roughly 88% of holdings maturing in less than a year. Investment earnings for the quarter totaled about $328,000, roughly $127,000 more than the same quarter last year, and total cash and investments across accounts were about $34.8 million as of June 30.
Council asked several operational questions about how interest earnings are allocated and whether the city could move funds between deposit accounts or use sweep/money-market arrangements to capture higher yields. Leverett described the mechanics: interest is allocated to the fund where the cash is held; transfers between banks are feasible but require attention to collateralization (pledging securities to protect deposits beyond FDIC limits).
Council moved to approve the quarterly financial and investment report. The motion carried with an affirmative vote.
