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Page 1 of 2 <br />CONSENT ITEM – 7K <br />MEMORANDUM <br />DATE: October 25, 2021 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Gayle Bauman, Finance Director <br />SUBJECT: 2021 3rd Quarter Financials <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <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 />All items need a simple majority for action unless otherwise noted. <br />Background <br />Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At September <br />30, 2021 – this rate was 0.03% and our portfolio is averaging 1.98%. All of our investments are <br />in 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 twice <br />a year. Expenditures are at 67.4% of budget through the quarter, compared to 67.7% last year. <br />Other governmental funds, enterprise funds and internal service funds – Utility revenue for third <br />quarter will be booked in October 2021 and annual transfers between funds will be booked later <br />in the year. The allocation for insurance (Risk Management Fund) was completed in June. <br />We are not anticipating any major budget issues as a result of COVID in 2021, but staff will <br />inform Council of any significant impacts that arise at the November work session.