5D, 2012 3rd Quarter Financials - Laserfiche WebLink

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lt EN HILLS MEMORANDUM DATE: November 29, 2012 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: 20123 rd Quarter Actuals Background/Discussion: Attached are the 3rd Quarter Actuals for 2012. Overall expenditures are running at budget estimates. The water and sanitary sewer funds are running over expenditures due to unbudgeted repairs and upgrades done this year. Revenue estimates are running above budget estimates as a result of increased building permit activity, some additional conduit debt received from Presbyterian Homes, and increased participation in recreation programs. Please remember that we have only received 50% of our revenue from property taxes and will not receive the 2nd half until December. (This includes special assessments in the PIR fund.) Governmental accounting is not done on an accrual basis, therefore the numbers reflect what was actually taken in as revenue or paid out as expenditures thru September 30, 2012. Accruals, deferred revenue adjustments, etc. are only done at year-end. Basically expenditures from operating activities are running close to the budget estimates or slightly below, revenues are slightly above budget estimates. (Please note that the overall percentages look lower because property taxes, liquor licenses,administrative fines,etc are collected at year-end.) New this year are the internal service funds. These funds are charged back to the operating departments. We have included estimated charges through September 30`" in these reports. These costs may seem to appear double counted when you look at the organization in total, as they appear in the internal service funds and then again as charges in the departments which used them — governmental accounting determines how we show this in our fund financial statements, but adjustments are made at audit time to show only the actual expenditures as any surplus or deficits in the internal service funds are rolled into the government-wide statements so actual expenditures and revenues are shown. They are meant to operate like the enterprise funds (our utility funds) but service our "internal" customers, which are our departments. They make it easier to manage budgets as we can see the"total" spent or received for these activities like Public Works,Insurance,Engineering,and Technology. An Investment Portfolio has also been included with these financial reports. Per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At September 30, 2012—this rate was 0.05% and our portfolio is averaging 2.247%. All of our investments are in government secured or government backed deposits. The section listed at the top of the portfolio are the "liquid" investments that we can access at anytime.