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REQUEST FOR COUNCIL ACTION Date: 5/6/2024 Item No.: 7.c. Department Approval City Manager Approval Item Description: Receive First Quarter Budget Amendment and Financial Report 1 2 Background 3 The first quarter of 2024 is complete and financial results are available. The Finance 4 Director prepared the attached first quarter financial report for Council review. This report 5 shows budget versus actual performance for the period ending March 31, 2024. 6 7 The financial report includes those programs and services that constitute the City’s core 8 functions and for which changes in financial trends can have a near-term impact on the 9 ability to maintain current service levels. Programs such as debt service and tax increment 10 financing which are governed by pre-existing obligations and restricted revenues are not 11 shown. In addition, expenditures in the City’s capital improvement funds are not shown as 12 these expenditures are specifically tied to pre-established capital reserve funds. Unlike 13 some of the City’s operating budgets, these reserve funds are not typically susceptible to 14 year-to-year fluctuations. In these instances, annual reviews are considered 15 sufficient. Enterprise funds do record both operations and capital within the fund as the 16 revenues and reserves pay for operations and capital improvements. 17 18 The information is presented strictly on a cash basis which measures only the actual 19 revenues that have been deposited and the actual expenditures that have been paid, 20 except for the Enterprise funds (Water, Sewer, Storm and Recycling) where revenues are 21 based on amounts billed in the first three months of the year. This is in contrast with the 22 ’s audited year-end financial report which attempts to measure revenues earned but not 23 collected, as well as costs incurred but not yet paid. 24 25 It should be noted that some of the City’s revenue streams such as property taxes and 26 intergovernmental revenues, are non-recurring or are received intermittently throughout the 27 year. This can result in wide revenue fluctuations from month to month. In addition, some of 28 the City’s expenditures are also non-recurring and subject to wide fluctuations. The 29 financial report notes those areas where fluctuations occur during the year. At this point in 30 time 25% of the year has passed and that sets the estimated benchmark for the first 31 quarter report. 32 33 General Fund Summary - The General Fund includes the activities associated with the 34 ’s police, fire, streets, administration & finance, legal, and other general 35 functions. Property tax revenue and state aid are the largest revenue sources for this 36 fund. The general fund reserves carry the operations in this fund until property taxes are Page 1 of 4 Qbhf!2::!pg!494