08-22-2022 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By:RJO Reviewed By: A. Carlson Approved By: 1.Purpose. The purpose of this item is update the Council on the year-to-date budget compared to actual revenues and expenditures. 2.Background. The second quarter General Fund year to date budget to actual comparisons are included with this memo. They are as of the end of June which represents 50% of the year. Revenues are currently at 57.3% of budget with expenditures at 48.33% of budget. 3.General Fund Revenues. At 57.3% of revenues the City is currently on pace to exceed revenues for the year. For comparison purposes, 2021 revenues at the end of the 2nd quarter were 60.5% and finished the year at 108% of budget. Tax revenues (50% of the revenue budget) are at 48.9% of budget compared to 48.6% last year. Tax collections tend to be higher during the 2nd half of the year, so it is projected that tax collections will be at 99%-100% for the year. Other revenues, are also on pace to meet or exceed budget by the end of the year. In particular, the Golf Course will exceed budget by season’s end and at the end of July is exceeding last year’s record revenues. 4.General Fund Expenditures. At 48.3%, the overall expenditure amounts are on target for the year. The amounts included in the attachments have been adjusted for wages earned in June, but paid in July. Most General Fund departments are around 50% of budget for the year and are not of concern. The Mayor and Council are at 62.5%; this is the result of the timing of payments for memberships. The department will be at budget at year end. Finance is at 67% of budget and will finish the year over budget. This is the result of reallocating positions after the budget was adopted. The additional wages in Finance are being offset by a reduction in Professional Services in the Central Services budget. 5.Investments. A listing of investments is included with this memo. The Federal Reserve has been increasing interest rates. It is anticipated that rates will continue to increase in the short term. Increasing rates will increase actual interest earnings on new investments. However, the requirement to record our investments at market value at year’s end, may lead to a “paper loss” as investments purchased in prior years will be marked down in value. 6.Summary. In summary, the overall General Fund budget is looking good through the 2nd quarter. Both revenues and expenditures are trending towards budgeted levels. COUNCIL ACTION REQUESTED No action is required. Exhibits A.Revenue Summary B.Revenue Detail C.Revenue Graphs/Tables D.Expenditure Summary E.Expenditure Detail F.Investments Item No.: 10 Date: August 22, 2022 Item Description: Second Quarter Financial Report Presenter: Ron Olson Finance Director Agenda Section: Finance Director Report