2020.04.28 CC Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: ACCEPTANCE OF INTERIM FINANCIAL STATEMENTS FOR THE FIRST QUARTER 2020 INTERIM DEPARTMENT HEAD’S APPROVAL: Gina Smith CITY MANAGER’S APPROVAL: No comments to supplement this report ___ Comments attached ___ Recommendation: To accept the First Quarter 2020 Interim Financial Statements Explanation: In an effort to keep the Council informed on the City’s fiscal condition, a comparison of the 2020 revenues and expenditures for the period ending March 31, 2020 (unaudited) is shown below. The comparison shown includes those programs and services that constitute the City’s core functions for which changes in financial trends can have a near-term impact on the ability to maintain current service levels. Programs such as debt service and tax increment financing which are governed by pre-existing obligations and restricted revenues are not shown. In addition, expenditures in the City’s Fleet and Non-Fleet programs are not shown as these expenditures are specifically tied to pre-funded asset replacement funds. These replacement funds are not susceptible to year-to-year fluctuations and therefore annual reviews are considered sufficient. The information is presented on a modified cash basis accounting method, which measures only the actual revenues that become available and measurable, and expenditures are recognized in the period the liability is incurred. It should be noted that many of the City’s revenue streams such as property taxes, are non-recurring or are received intermittently throughout the year. This can result in wide revenue fluctuations from month to month. In addition, some of the City’s expenditures such as new capital purchases are also non-recurring and subject to wide fluctuations. To accommodate these differences, a comparison is made to historical results to identify whether any new trends exist. General Fund Summary The General Fund is the primary operating fund of the City. It accounts for the financial activities of most of the City’s core functions. Its primary funding source is the property tax levy. The following table depicts the 2020 financial activity for the General Fund for the fiscal period ending March 31, 2020 (unaudited). Table Comments: • “% Actual” column depicts the percentage spent compared to the budget • “% Expect” column depicts the percentage of revenues or expenditures we normally incur during this period as measured over the previous 3 years. • “Diff” column depicts the difference between the percentage actually spent and the percentage we typically incur. A percentage difference of 10% or more in this column would be considered significant. Agenda Section: Council Business Report Date: April 22, 2020 Council Meeting Date: April 28, 2020