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CONSENT ITEM—7B <br /> ,--iIZEN HILLS <br /> MEMORANDUM <br /> DATE: April 27, 2020 <br /> TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> FROM: Gayle Bauman, Finance Director <br /> SUBJECT: 2020 1'Quarter Financials <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> N/A N/A N/A <br /> Council Should Consider <br /> Quarterly, city staff provides the City Council with a budget to actual update. Please find the <br /> attached General Fund, City-Wide Funds, and Investment Portfolio updates for review. The <br /> Council may choose to accept the reports as is or provide further direction. <br /> Background <br /> Investments -per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At March 31, <br /> 2020—this rate was 1.27% and our portfolio is averaging 2.12%. All of our investments are in <br /> government secured or government backed deposits. Utility billing cycles and CIP projects are <br /> taken into account when determining how much to invest and for how long. <br /> Basis of accounting—during the year, City books are kept on a cash basis which means that only <br /> items that are received are booked as revenue and items paid are booked as expenses. <br /> Adjustments for accruals, deferrals and other accounting requirements are made at year end. <br /> General Fund— The main source of revenue for the City is property taxes and these come in <br /> twice a year. Expenditures are at 22.9% of budget through the first quarter. <br /> Other governmental funds, enterprise funds and internal service funds—Utility revenue for first <br /> quarter will be booked in April 2020 and annual transfers between funds will be booked later in <br /> the year. The allocation for insurance (Risk Management Fund) will be completed in June. <br /> Page 1 of 2 <br />