MSFA reports $84.74 million in cash and investments; Q2 operating results mixed but over budget on investment income

At its March 19, 2026 meeting, the Minnesota Sports Facilities Authority received a Q2 budget report covering July 1, 2025–December 31, 2025. Director of Finance Michelle Hoffman presented the Authority’s operating account, capital reserve account, and other accounts, reporting total cash and investments of $84,738,049 as of December 31, 2025 (Exhibit D).

Hoffman noted that investment income was “well over budget as the budget was set conservatively” given economic uncertainty and potential federal rate changes. The memorandum and supporting schedules show the following balances at December 31, 2025: MSFA operating cash and investments $22,639,430; MSFA capital cash and investments $38,517,569; MSFA concession capital cash and investments $2,349,612; SMG‑managed accounts $21,231,438, totaling $84,738,049. The operating account ending balance was $25,652,569 (per the Q2 schedules); capital reserve and concession reserve balances and year‑to‑date variances were also documented.

The report attributes some variance to the timing of major events (one major event budgeted in Q1 occurred at the start of Q2), which raised revenue YTD and produced lower capital project activity in the quarter. The memorandum includes line‑item budget-to‑actual tables and indicates capital expenses and transfers that produce a capital reserve ending balance of $40,558,535 and a concession capital reserve ending balance of $2,486,357 (Q2 YTD figures shown). The board received the report as information; no formal action was taken.