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Finance manager says bank RFP boosted interest earnings to about $71,000 annually; single-audit expected in 2026
Summary
City finance staff reported an RFP-driven money-market rate increase from 0.04% to 3.56%, raising estimated annual interest earnings to roughly $71,000; staff also warned that federal grants tied to a Highway 5 & 11 project will trigger a single audit in 2026 (estimated $7,000–$10,000).
Abby Cabra, the city finance manager, told the council the city renegotiated its bank services through an RFP and kept Old National as the bank partner, which led to a higher interest rate on a money-market account.
"We went from 0.04% to 3.56%. So in terms of dollars, if we use the average balance, that goes from $800 a year to $71,000 a year," Cabra said. She described the account as highly liquid and said staff vetted the change through competitive proposals and bank discussions.
Cabra also outlined two budget pressures for finance: an anticipated 9.6% increase in the assessment-contract cost (about $9,000) driven by more parcels, and a requirement to complete a single audit in 2026 because federal grants tied to the Highway 5 and 11 project will push federal receipts above the $1,000,000 threshold. Staff estimated the single audit would cost between $7,000 and $10,000 depending on complexity.
Council members praised the department's awards and the city's triple-A bond rating, which staff said reduces borrowing costs. Cabra said the finance team publishes frequent reports (quarterly reports, an annual comprehensive financial report and a popular annual financial report) to support transparency and long-range planning.
