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REQUEST FOR COUNCIL ACTION <br /> Date: 4/22/13 <br /> Item No.: 7.g <br />Department Approval City Manager Approval <br />Item Description: 2013 1st Quarter Financial Report <br />B <br />ACKGROUND <br />1 <br />In an effort to keep the Council informed on the City’s fiscal condition, a comparison of the 2012 <br />2 <br />revenues and expenditures for the period ending March 31, 2013 (unaudited) is shown below. This <br />3 <br />comparison is presented in accordance with the City’s Operating Budget Policy, which reads (in part) <br />4 <br />as follows: <br />5 <br />6 <br />The Finance Department will prepare regular reports comparing actual expenditures to <br />7 <br />budgeted amounts as part of the budgetary control system. These reports shall be <br />8 <br />distributed to the City Council on a periodic basis. <br />9 <br />10 <br />The comparison shown below includes those programs and services that constitute the City’s core <br />11 <br />functions and for which changes in financial trends can have a near-term impact on the ability to <br />12 <br />maintain current service levels. Programs such as debt service and tax increment financing which are <br />13 <br />governed by pre-existing obligations and restricted revenues are not shown. In addition, expenditures <br />14 <br />in the City’s vehicle and equipment replacement programs are not shown as these expenditures are <br />15 <br />specifically tied to pre-established sinking funds. Unlike some of the City’s operating budgets, these <br />16 <br />sinking funds are not susceptible to year-to-year fluctuations. In these instances, annual reviews are <br />17 <br />considered sufficient. <br />18 <br />19 <br />The information is presented strictly on a cash basis which measures only the actual revenues that have <br />20 <br />been deposited and the actual expenditures that have been paid. This is in contrast with the City’s <br />21 <br />audited year-end financial report which attempts to measure revenues earned but not collected, as well <br />22 <br />as costs incurred but not yet paid. <br />23 <br />24 <br />It should be noted that many of the City’s revenue streams such as property taxes, are non-recurring or <br />25 <br />are received intermittently throughout the year. This can result in wide revenue fluctuations from <br />26 <br />month to month. In addition, some of the City’s expenditures such as capital replacements are also <br />27 <br />non-recurring and subject to wide fluctuations. To accommodate these differences, a comparison is <br />28 <br />made to historical results to identify whether any new trends exist. <br />29 <br />30 <br />31 <br />Page 1 of 13 <br /> <br />