Print this page
Go Back view attachments
Posted: February 27, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF031225-03

Agenda Item Title:

January 2025 Treasury and General Fund Update

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/12/2025
City Council Hearing Date:
03/17/2025
Petitioner:
Finance Office
Staff Contact:
Daniel Ainslie
Location:
Council Chambers
Agenda Item Summary:
The attached January 2025 Treasury Report includes a breakdown of the City’s $210.2 million in liquid assets. As of the end of January, 70.2% of the City’s liquid assets were invested in fixed rate instruments as authorized by state statute. The City began being more aggressive in seeking returns on the City’s liquid cash in 2023. This return is now a significant revenue stream for the City. The February Treasurer’s report will include some fairly significant positive adjustments to fund balances with the inclusion of the market value of several of the investments made by the City.

A new third page of the Treasury Report includes various longer term loans that the City has made from one internal fund to another internal fund. This allows the fund receiving the loan to pay lower interest and save the taxpayers money while generating a higher interest rate return for the taxpayers. As of the end of January, these internal loans represented 5.5% of the City’s total liquid assets. Should the City ever need to use some of these assets or increase its liquidity in one of the funds that provided the financing for the loans, the City Council may transfer the loan from one fund to another.

It is important to note that Fund 789 Group Insurance (self-funded health fund) finished January with a balance of $4,171,633.71. This is the first month in years that the balance has reached the $4 million goal. The City’s policy is to end the $50 per employee per pay period surcharge once this threshold is achieved for four months in a row. The increased disbursements from the General Fund are largely due to the 3rd pay period that occurred in January 2025. Most years (including 2025) there are only two months which have this additional pay period, which skews expense data.

The other attachments illustrate the total cash reserves and designated and undesignated balances for the General Fund. The City’s General Fund Undesignated Reserve finished January 2025 in a positive position of $4,632,722.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Acknowledge
Published in 2025 - LF Agenda Items

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries