08-13-07 Agenda Item 4E - Laserfiche WebLink

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~ ~~HILLS MEMORANDUM DATE: August 9, 2007 4.E. TO: Honorable Mayor and City Council Michelle Wolfe, City Administrator V FROM: Sue Iverson, Finance Director ~ SUBJECT: 2007 2nd Quarter Financial Reports Background/Discussion: The second quarter [mancial reports are now completed. I have prepared summary sheets for each of the fund types and provided the department detail behind. The reports show the Adopted Budget for the year, June 30, 2007 year-to-date actual results, the percentage of budget used year-to-date, and the amount that remains in the budget. I have not adjusted any budget amounts for any additional authorized charges approved by Council. I will bring forward budget amendments for these items during the 2008 budget process. Items which may be included in these amendments are legal costs for City Hall arbitration and mediation, City Hall repairs, Council Chamber A V equipment, etc. For your information, I have included comments in the detailed portion of the reports to identify instances of major expenditures which may cause the numbers to look over or under budget. This helps to identify situations and helps in understanding the actual numbers versus the budgeted numbers. Some of those areas include: increased costs for advertising in the Administration budget due to position vacancies, increased audit costs in the Finance budget, City Hall arbitration/mediation and repair costs in the City Buildings budget, and unemployment costs which impact several public works related budgets (Streets, Parks, Water, Sewer, Storm Water Management, etc). Overall, the numbers look to be on track with the budget as the General Fund is running about 50% of budget for the first half of the year. Special Revenue Funds vary based on the funding sources, developer expenditures and reimbursements, with the exception of the Cable Fund which is running over budget due to the Laser fiche and Council Chamber A V equipment. Enterprise Funds look behind due to fact that we have a lag in revenue recognition as we do not book the revenue until we receive the payments from customers. At year-end we do an accrual for these billings so that the entire year is reflected, but this is the only time we book an accrual. You would be looking at first quarter revenues and part of the second quarter in these numbers. This would also be reflected in the charges, as major charges are from Roseville for water and the Metropolitan Council for wastewater and they bill us on a lag also. The second quarter investment portfolio has also been included. I have not yet made any changes to the reports or in any investments, as we have just completed and approved the investment policy. Rates in