7D, First Quarter Financial Reports

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~ /],\~HILLS MEMORANDUM DATE: April 25, 2008 TO: Honorable Mayor and City Council Jim Willis, Interim City Administrator FROM: Sue Iverson, Finance Director ~V SUBJECT: 2008 1 st Quarter Financial Reports Background/Discussion: The first quarter financial reports are now completed. I have prepared summary sheets for each of the fund types and provided the department detail. The reports show the Adopted Budget for the year, March 31, 2008 year-to-date actual results, the percentage of budget used year-to-date, and the amount that remains in the budget. r 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 2009 budget process. Items which may be included in these amendments are personnel recruitment costs for the new city administrator, City Hall repairs, and the Smart Board purchase, 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 recruitment in the Administration budget due to the city administrator search, City Hall repair costs in the City Buildings budget, and the Smart Board purchase in the Cable budget. Overall, the numbers appear on track with the budget as the General Fund is running about 15% of budget for the first quarter of the year. Please remember that the City operates on a cash basis during the year and many March expenditures will not be reflected as they are paid in April. Operating revenues for the General Fund are showing that we have received 3,98%, but you must remember that the majority of our revenues are from property taxes and govemment aids (Market Value Homestead Credit and Fiscal Disparities) and these are only received twice a 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 Smart Board purchase, which was originally budgeted in 2007, but was purchased in 2008 - a budget adjustment will come forward in 2008 for this item. Enterprise Funds appear behind due to fact that there is a lag in revenue recognition as we do not book the revenue until payments are received 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 part of the first quarter revenues in these numbers; March billings do not get sent until the beginning of April and