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CONSENT AGENDA – 5B MEMORANDUM DATE: November 10, 2014 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services Kyle Howard, Finance Analyst SUBJECT: 2014 3rd Quarter Actuals Background/Discussion: Attached are the 3rd Quarter Actuals for 2014. Overall expenditures are running near budget estimates. Revenue are running in line with budget estimates as a result of increased zoning permit activity, and increased participation in recreation programs. Please remember that we receive 50% of our revenue from property taxes and did not receive the 1st half until July, and Administrative Fines are not received until the final contract number reconciliation next March. 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, 2014. Accruals, deferred revenue adjustments, etc. are only done at year-end. When looking at the numbers as they currently stand and adjustments that are made at year-end, overall Revenues are running at about 57.68% and Expenditures are running at about 55.69% in total. The general fund Revenues are running at 54.20% and Expenditures are running at 76.06%. (Please note that the percentages look lower because property taxes, liquor licenses, etc are collected at year -end. We also have a lag time in receiving invoices and charging internal service funds.) 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, 2014 – this rate was 0.05% and our portfolio is averaging 2.954% in long-term investments and 2.439% overall. All of our investments are in government secured or government backed deposits. The section listed at the top of the portfolio is the “liquid” investments that we can access at anytime. We are trying to stay diversified in this area and will be transferring between these accounts. We have had some of our high interest notes mature and are working on cash flows with the PMP and other CIP projects to determine how much we can invest and for what time periods. We continue to research other liquid investment options that will possibly give us a better return, but are still monitoring our immediate cash flow needs. If you have any questions, please feel free to call us. You also have available to you the Detailed Summary Trial Balance which includes all transactions from the year on the Council Sharepoint page. Staff Recommendation: Staff requests that Council accept the 3rd Quarter Financial Reports.