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Page 1 of 2 CONSENT ITEM – 8B MEMORANDUM DATE: July 24, 2023 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: 2023 2nd Quarter Financials Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion to approve, table or deny the following: • Quarterly budget to actual fund statements and investment portfolio detail for the City. Background Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At June 30, 2023 – this rate was 5.105% and our portfolio is averaging 2.67%. Our average rate will begin to increase as lower interest investments mature and we continue to invest in higher interest investments. 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. The second quarter financial results are generally as expected across all City funds. Building permit and plan check fees are down from the prior year due to decreased building activity and departments are for the most part under the 50% expended thus far in the year. General Fund – The main source of revenue for the City is property taxes and these come in twice a year. Expenditures are at 46.0% of budget through the end of the quarter, compared to 42.0% last year. Some of this difference is due to the timing of invoices. Other governmental funds and enterprise funds – Utility revenue for second quarter will be booked in July 2023 and annual transfers between funds will be booked later in the year.