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HomeMy WebLinkAbout[04d] Financial Report and Transfers 4(d) Council Agenda Item MEETING DATE: November 7, 2013 AGENDA ITEM: Financial Report–Requested Action: Accept the 3rdQuarter 2013and September2013Financial Reports SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A PREVIOUS COUNCIL ACTION: Council accepted the July and AugustFinancial Reports. BACKGROUND INFORMATION: Quarterlyand monthlyreconciled cash/investment and budget to actual position are provided for Council review.The numbers presented are the cash balancesas of September30, 2013. There are a couple points to highlight from the reports. CASH POSITION : -The market rateof return is approximately 1.72%with an average maturity of two years. The 10- year Treasuries are currently 2.61%, 2-year Treasury is 0.32%.The City tiers the maturity dates within the boundaries of the Investment Policy. The City has purchased some 5-year CDs in the past at 4-5% interest rates. A few of these CDs are still owned by the City. The teiring of maturity dates has helped the City maintain a higher rate of return than the current market. -Interest earnings for 2013 show a low amount. The City’s policy and intention when purchasing investments is to hold them to maturity. The brokered CD’s are purchased at a premium and market values will fluctuate some with current market conditions. Government securities will also fluctuate. These investments will have an increase and decrease rate of return over their lives based on market interest rates. The total returns will be met over the life of the investments. -The funds showing a cash deficit will be positive when the Dec. tax settlement is received. -Overall, thecash and investments balance increased$2.3Mfrom the beginning of the year. The 2013 bond issue in September is the reason for the large increase. FUNDS REPORT : General fund -The spent 69% of the 2013budget and received 54% of the revenue budget. Expenditures are operational in nature with some capital expenses in the Capital Projects Fund and 2013 Equipment Certificates.Revenues will be less than expenditures until Dec. when the second half tax settlement and state aids. Enterprise Funds -The show expenses slightly more thanrevenueswith exception of the storm waterfund.The reportsshow 9months of expenses and approximately 8.5months utility revenue received. The water fund is more even because the utility rates are partially covering the debt payments. The first half interest payments were made in May, the second half plus principal will be paid in November. The street light utility beganbilling with the May utility bills. The first two months were funded by the general fund transfer. The negative cash balances in the street light utility will balance out once the billings catch up to the monthly expenses. Water fund analysis(fund 601/501) –The enclosed spreadsheet showsan analysis ofthe water fund, includingthe Water fund (601) and the Water Access fund (WAC-501). The City receivedWAC and Trunk fees from the Army Reserve facility, 5single family homes and the second half receipt for the th ACIS building expansionas of September30 .The water fund showsa cash surpluswhen combined with fund 501of $162,685. ½ ¢ Sales Tax (fund 200): The sales tax fund has a balance of $1,252,395at the end of September. The City anticipates collecting $3,000,000 in sales tax revenue through 2017; $2,015,286collected to date. The anticipated expenditures approved by Council totals$887,610leaving approximately$2,112,390 remaining for future projects. CIP REPORTS: th -The 2013CIP summary isincluded to show the capital expenditures through September30.The 3rdquarter capital expenditures include computer upgrades, iPads, police squad, defibulators, PW truck, Gator and trailer, turnout gear, radio and pager equipment, Cloverdale Park upgradesand EDA programs. BUDGET/FISCAL IMPACT: Information Only ATTACHMENTS: Request for Council Action–Quarterly and SeptemberFinancial Reports 3rdQuarter Reports: Cash Position as of 6/30/13 Cash and Investment Holdings Chart Cash Balances by Fund/Remaining Budget General & Fire Budget to Actual Expenditures & Revenues Enterprise Funds Activity Graph Quarterly Water Fund Analysis ½¢ Sales Tax Fund Summary SeptemberTreasurer’s Reports: Cash and Investment –Council Report Council Month End Revenue Summary Council Month End Revenue –General Fund Council Month End Revenue –Enterprise Funds Council Month End Expenditure Summary Council Month End Expenditure –General Fund Council Month End Expenses -Enterprise Funds Capital Summary Reports: General Fund Capital Improvement Plan –Summary Fire Fund Capital Improvement Plan Park Board Capital Improvement Plan –Summary Capital Improvement Plan –Enterprise REQUESTED COUNCIL ACTION: Acceptthe financial reportsas presented.