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CONSENT ITEM - 8B -ADEN HILLS MEMORANDUM DATE: October 28, 2024 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, Interim City Administrator FROM: Joua Yang, Finance Director SUBJECT: 2024 3rd 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 September 30, 2024 — this rate was 5.063% and our portfolio is averaging 2.85%. 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 third quarter financial results are generally as expected across all City funds. Building permit revenues are down from the prior year due to decreased building activity. Liquor sales are also down from the prior year. Departments for the most part are under or at the 75% expended thus far in the year, with the exception of Fire Protection as the annual contract was fully expended in the first half of 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 74.0% of budget through the end of the third quarter compared to 75.6% last year. Some of the differences are due to the timing of invoices. Page 1 of 2