Finance report: general fund down after ARPA and capital spending; investments laddered, ARPA near closeout

Finance staff presented the city’s quarterly financial position and said that, relative to the prior year, the general fund cash balance is about $3 million lower primarily because ARPA and capital projects (North Fire Station, Frontier Center) have been spent down.

Investments: the treasury described a laddered portfolio that prioritizes safety and liquidity, with a current overall yield approximately 3.4% and short-term purchases yielding roughly 3.5%–3.6% depending on instrument. Staff noted a temporary policy overage in longer‑term holdings driven by callable securities and short-term cash deployments; they expect the portfolio composition to normalize in coming months.

ARPA status: staff said $10.5 million in ARPA awards were made and about $10 million expended through January; a remaining small balance supports ordered equipment (example: a specialized safety cap ordered for police). To avoid missing the December obligation deadline, staff proposed repurposing any remaining ARPA funds to personnel costs or other eligible projects if necessary; council heard that most ARPA projects are expected to be expended by mid‑year.

Operational highlights: the airport reported a January cash balance of about $3.2 million and strong parking and general aviation revenues; the city’s golf fund was reported positive for January, reversing historical winter deficits partially due to operational changes (e.g., driving-range machines).

Next steps: finance will continue monthly monitoring, handle ARPA closeout items and present any necessary budget adjustments in subsequent meetings.