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CONSENT ITEM - 8B <br />,-ARZEN HILLS <br />IUVINLVALeiMEN,In"01I <br />DATE: July 22, 2024 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Joua Yang, Finance Director <br />SUBJECT: 2024 2nd 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 />Background <br />Investments - per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At June 30, <br />2024 — this rate was 5.234% and our portfolio is averaging 2.97%. Our average rate will begin to <br />increase as lower interest investments mature and we continue to invest in higher interest <br />investments. All of our investments are in government secured or government backed deposits. <br />Utility billing cycles and CIP projects are taken into account when determining how much to <br />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 />The second quarter financial results are generally as expected across all City funds. Building <br />permit revenues are down from the prior year due to decreased building activity. Liquor sales are <br />also down from the prior year. Departments for the most part are under the 50% expended thus <br />far in the year, with the exception of Fire Protection as the annual contract was fully expended in <br />the first half of the year. <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 51.7% of budget through the end of the second quarter; however, if <br />the second half Fire contract payment had not been expended in the second quarter, expenditures <br />would be at 44.9% compared to 44.4% last year. Some of the differences are also due to the <br />timing of invoices. <br />Page 1 of 2 <br />