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Page 1 of 2 <br /> <br />CONSENT ITEM – 6B <br /> <br />MEMORANDUM <br /> DATE: July 26, 2021 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: 2021 2nd Quarter Financials <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br />Council Should Consider <br />Motion to approve, table or deny the following: <br />• Quarterly budget to actual fund statements and investment portfolio detail for the City. <br /> <br />All items need a simple majority for action unless otherwise noted. <br /> <br />Background <br />Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At June 30, <br />2021 – this rate was 0.03% and our portfolio is averaging 2.01%. 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 /> <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 /> <br />General Fund – The main source of revenue for the City is property taxes and these come in twice <br />a year. Expenditures are at 41.4% of budget through the second quarter, compared to 41.9% last <br />year. <br /> <br />Other governmental funds, enterprise funds and internal service funds – Utility revenue for <br />second quarter will be booked in July 2021 and annual transfers between funds will be booked <br />later in the year. The allocation for insurance (Risk Management Fund) was completed in June. <br /> <br />It is unclear what effects COVID will have on the budget this year, but staff will inform Council <br />of any significant budget impacts that arise. <br /> <br /> <br />