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Page 1 of 2 CONSENT ITEM – 7B MEMORANDUM DATE: October 22, 2018 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: 2018 3rd Quarter Actuals and Year End Projections Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Quarterly, City Staff provides the City Council with a budget to actual update, please find the attached General Fund, City-Wide Funds, and Investment Portfolio updates for review. The Council may choose to accept the reports as is or provide further direction. Background Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At September 30, 2018 – this rate was 1.83% and our portfolio is averaging 2.92%. All of our investments are in government secured or government backed deposits. Utility billing cycles and CIP projects are taken into account when determining how much to invest and for how long. Basis of accounting – during the year, City books are kept on a cash basis which means that only items that are received are booked as revenue and items paid are booked as expenses. Adjustments for accruals, deferrals and other accounting requirements are made at year end. General Fund – The main source of revenue for the City is property taxes and these come in twice a year. Expenditures are at 69.35% of budget through the third quarter. Also included on Attachment B is information related to year-end projections for the General Fund. The adopted budget for the General Fund was a use of funds (deficit) of $237,225. After analyzing data through 9/30/18, we are currently projecting an increase in fund balance of $188,010 – this is an increase over the original budget of $425,235. This increase includes building permit fees for