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Olivette finance director reports shortfall, investment earnings help offset pressure
Summary
The city's finance director reported revenues through September were about $213,000 below expectations and the net position was roughly $250,000 unfavorable; the FY24 fund balance remains around $9.8 million and short- and long-term investments are producing monthly earnings of roughly $25,000–$30,000.
At the Oct. 22 Olivette City Council meeting, the finance director (Mister Mann) delivered the monthly financial report and quarterly investment update.
On the operating side, Mann said revenues through September were "below our expectations by about $213,000" and that expenditures were running higher than expected; combining those effects produced a net unfavorable position of about $250,000. He stressed the city's unaudited FY24 fund balance remains approximately $9.8 million, which provides a buffer while staff monitor sales-tax trends that have softened in recent months.
Mann noted certain timing issues can skew month-to-month results: special-event receipts (such as the Turkey Trot) and prepaid costs (shirts and other event expenses) can temporarily make a program look negative before registrations and reimbursements fully settle. He also reminded the council that some new commercial openings are in a TIF and so the city receives a reduced share of sales taxes from those projects.
On investments, Mann summarized the city's laddered approach for idle cash: short-term maturities have yielded about $25,000–$30,000 per month recently, and the city holds some longer-term positions maturing as late as 2028 that are yielding near 5% on parcels around $250,000. Mann said some proceeds are being used for expected ARPA and capital expenditures and cautioned that interest earnings may decline if the Federal Reserve eases rates; he plans to report again in January.
The council asked clarifying questions about timing and TIF implications; Mann and staff said they will continue to monitor performance and return with additional detail if council desires.
