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Council adopts amended 2025 budget after finance staff reports $1.7 million favorable revenue variance
Summary
City finance staff told the council general fund revenues outperformed the adopted 2025 budget (about $11.29M actual vs. $9.6M budget), driven by higher building-permit receipts and interest earnings; the council approved the amended 2025 budget and carryforward/assignments as presented.
New Richmond finance staff presented and the City Council adopted an amended 2025 budget that reflects stronger‑than‑expected revenues and several one‑time receipts.
According to the presentation (recorded in the meeting as delivered by Rayanne), the city’s general fund revenues for 2025 totaled about $11,293,629 compared with a budgeted figure of just over $9.6 million, producing a favorable variance of roughly $1.7 million. Major drivers included approximately $581,000 in additional building‑permit receipts (a near 96% increase from 2024), $289,173 in additional interest earnings, a $150,000 development‑fee receipt tied to an unmet development agreement obligation, ~ $144,531 in share‑taxi grants, about $142,695 in insurance recoveries related to storm damage, and increases in utility pilot payments and room taxes.
Expenditures were reported at about $10,212,375 — a modest unfavorable variance to budget — but the stronger revenue performance produced a net positive position estimated at roughly $1.18 million at the end of the year in draft figures presented to council. Finance staff noted some capital outlays (including a $550,000 library building expenditure) and other expense drivers. The presentation stated that audited numbers will be finalized when the annual audit completes; staff said final ratios will be recalculated post‑audit.
The presentation summarized general‑obligation debt and recent debt issuances. Staff reported two debt actions tied to the new library: a $10 million lease‑revenue bond (structured as lease revenue and not counted as GEO debt) issued in April and a state trust‑fund loan of $1.66 million partially drawn in December (the transcript records $1.3M drawn in December and the remaining $300,000 drawn in the first quarter of 2026). Staff explained the city’s internal debt policy targets and the Moody’s guidance for available debt capacity.
Council members questioned several line items (including taxi program operational costs vs. grant reimbursements), asked about comparatives with other municipalities, and discussed fund balance policy targets (a 60% target cited as Moody’s guidance and internal targets for unassigned and available fund balances). After discussion Alderman moved, seconded and the council approved the amended 2025 budget, carryforwards and assigned funds as presented.
Staff said they will finalize audited ratios after the audit completes in summer and return with any necessary adjustments during the 2027 budget cycle.
No amendments to the adopted figures were recorded in the council action at the meeting; the council approved the resolution as presented.
