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Brentwood finance staff report $708,131 in 2025 interest earnings; $4.18 million total since manager relationship began
Summary
City presenters told the Ways and Means Committee that total interest earnings since the start of the investment relationship are $4,182,000, with $708,131 earned in 2025. Staff said much of the 2025 amount is restricted to debt-service reserve funds and that county processing delays affect final 2025 revenue recognition.
Brad, the committee's investment presenter, reported that total interest earnings from the city's investment relationship through the end of 2025 are $4,182,000 and that earnings in 2025 were $708,131. "That equates to roughly $59,000 a month in interest earnings," he said, adding that the 2025 sum is largely tied to 2018 and 2019 bond debt service reserve funds and a general fund account for excess city funds.
Michelle, who presented the financial statements, clarified that much of the headline interest is restricted. "A lot of those are attributed to the debt service monies," she said, and noted the general fund's interest earnings were about $225,000 as of November. Michelle told the committee the city's operating accounts earn at a much lower level (she said roughly "$303.50" in operating-account interest) and that $1.8 million of funds were temporarily taken out last year for alternate projects and are currently being held in cash ahead of an expected fire-truck purchase.
Committee members asked whether a late processing of county sales-tax deposits could shift revenue between years. Michelle explained the city uses modified-accrual accounting and has a 60-day window to accrue late revenue back to the prior year. "Basically, we have through February," she said, noting county processing delays could make 2025 revenue appear low and 2026 artificially high by timing alone.
Alderman Goad and staff also discussed use-tax performance. Staff said use-tax receipts were about 20% higher than at the same point in 2024, partially offsetting weaker sales-tax timing. The finance presenter said the city is watching ad valorem and sales tax collections closely because county and state processing delays remain a variable.
The session included questions about utility billing and an ongoing claim with Missouri American Water for suspected high usage at a fountain; staff said the city is pursuing a claim but has not yet determined a final outcome.
The committee did not take formal action on the financial reports; the presentations constituted information to support upcoming budget work and auditing (the city anticipates single-audit requirements if cumulative federal receipts exceed $1,000,000).
