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M <br /> REQUEST FOR COUNCIL ACTION <br /> Date: 12/12/11 <br /> Item No.: 7 . j (Revised) <br /> Department Approval City Manager Approval <br /> Item Description: 2011 3rd Quarter Financial Report <br /> 1 BACKGROUND <br /> RIDixpl In an effort to keep the Council informed on the City's fiscal condition,a comparison of the 2011 revenues <br /> ',:�� and expenditures for the period ending September 30,2011 (unaudited)is shown below. This comparison <br /> 4 is presented in accordance with the City's Operating Budget Policy, which reads (in part) as follows: <br /> 5 <br /> 6 The Finance Department will prepare regular reports comparing actual expenditures to <br /> 7 budgeted amounts as part of the budgetary control system. These reports shall be <br /> distributed to the City Council on a periodic basis. <br /> 9 <br /> 1() The comparison shown below includes those programs and services that constitute the City's core functions <br /> "I'll and for which changes in financial trends can have a near-term impact on the ability to maintain current <br /> 12 service levels. Programs such as debt service and tax increment financing which are governed by pre- <br /> 1i 1J existing obligations and restricted revenues are not shown. In addition, expenditures in the City's vehicle <br /> 14, and equipment replacement programs are not shown as these expenditures are specifically tied to pre- <br /> 15 established sinking funds. Unlike some of the City's operating budgets, these sinking funds are not <br /> 16 susceptible to year-to-year fluctuations. In these instances, annual reviews are considered sufficient. <br /> 1�7 <br /> 1,113 The information is presented strictly on a cash basis which measures only the actual revenues that have been <br /> 1iwa deposited and the actual expenditures that have been paid. This is in contrast with the City's audited year- <br /> (,") end financial report which attempts to measure revenues earned but not collected,as well as costs incurred <br /> 2li but not yet paid. <br /> 2",° It should be noted that many of the City's revenue streams such as property taxes,are non-recurring or are <br /> 24, received intermittently throughout the year. This can result in wide revenue fluctuations from month to <br /> 25 month. In addition,some of the City's expenditures such as capital replacements are also non-recurring and <br /> 26 subject to wide fluctuations. To accommodate these differences,a comparison is made to historical results <br /> 27 to identify whether any new trends exist. <br /> 29 <br /> Page 1 of 13 <br />