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Council receives city and utilities financial reports; staff outline reserves and budget pressures
Summary
Finance Director Jennifer Nab presented pre-audit FY25 reports for the Department of Utilities and the city, noting inflationary pressures, a coal-pile density study affecting inventory, use of sewer reserves for capital work, and an estimated 4–5 years to rebuild reserves to an eight-month target.
The City of Fremont received two financial reports covering FY25 operations and preliminary fiscal conditions for city government and the Department of Utilities.
Jennifer Nab, finance director, told the council the Department of Utilities is in sound financial shape overall but faces inflationary cost pressures and expects higher FY26 costs because a generating unit is out of service and gas consumption at the electric plant may rise. Nab described a coal-pile density study the department is using to reconcile inventory and tonnage, and said reserves targets are eight months; after prior use of sewer reserves to fund capital improvements the sewer fund now has about one and a half months of reserves, with staff estimating four to five years to rebuild to the goal under current plans. Nab also said the city reaffirmed strong debt posture during recent bond activity (S&P reaffirmed an AA- rating).
On the city report (FY25 vs FY24), Nab said the city spent down reserves for approved projects (including a fleet building) and used ARPA funds for stormwater master planning and storm-sewer cleanouts. She noted a year-over-year $1.9 million increase in salary costs (about $1.5 million of which was for public safety) and lower investment income because invested balances declined. Council members pressed for greater visibility on potential exposures from state tax refund mechanisms (Nebraska Advantage Act and similar programs); staff said the city receives notice when a refund application is filed and gave an example of a $122,000 sales-tax withholding tied to a future refund, but said no comprehensive liability estimate was available.
The council moved to receive both reports; the presentations identify reserve and capital pressures staff will monitor as they prepare audited financial statements and upcoming budgets.
