05-09-2022 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By: RO Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of the action item is to provide the city council an update on the 2022 Budget progress through the end of the first quarter. 2. Summary. The first quarter General Fund year to date budget to actual comparisons are included with this memo. They are as of the end of March which represents 25% of the year. Revenues are currently at 14.4% of budget with expenditures at 22.84% of budget. 3. General Fund Revenues. The low revenue percentage is normal for the first quarter. The timing of revenue streams account for the low revenue percentage for the quarter. The first property tax receipts, representing 50.3% of the budget, will not be received until June. Various state grants (Other Governmental Revenue) will also not be received until later in the year. For comparison purposes, 2021 1st quarter revenues were at 16.5% with 2020 revenues at 16.1%. Both years ended over budget for revenues. A revenue graph is included to illustrate the typically low 1st quarter revenues. 4. General Fund Expenditures. At 22.8%, the overall expenditure amounts are on target for the year. At the end of the first quarter in 2021, we were at 21.9% and ended the year at 101.5%. 2021’s overages were due to increased expenditures at the golf course and the additional expenditures related to the Spring Park service contract. Both of the items were offset by revenues. Although some adjustments have been made, the expenditure statement should be view as non-adjusted. There are no departments that are of concern at this point in the year. 5. Investments. A listing of investments is included with this memo. While interest rates remain low, the Federal Reserve has increased rates by 75 basis points this year and is likely to raise rates throughout the year. Interest earnings through March are $20,286 on total investments of $14,534,587. 6. Staff Analysis. In summary, the overall General Fund budget is looking good through the 1st quarter. We will have a much better revenue estimate in six weeks when we have received the 1st half tax settlement. COUNCIL ACTION REQUESTED No Action - Staff update. Exhibits A. Revenue Summary B. Revenue Detail C. Revenue Graphs/Tables D. Expenditure Summary E. Expenditure Detail F. Vendor Listing G. Investments Item No.: 14 Date: May 9, 2022 Item Description: First Quarter Financial Report Presenter: Ron Olson Finance Director Agenda Section: Finance Report