TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Jeffery Yates, Assistant City Manager
DATE: November 18, 2024
RE:
Title
Receive FY 2025 First Quarter Financial Update
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V : Financially Sound City Providing Exemplary City Services.
Executive Summary:
The presentation and discussion focus on the City’s FY 2025 financial performance through September 30, 2024.
Background:
On November 4, 2024, the City Council received the annual audit report for the year ended June 30, 2024. The information included in this report represents the activity from July 1 to September 30, 2024
Issues/Analysis:
Several key takeaways emerge when the various reports are analyzed as a landscape. No single piece of information provides a complete picture, but when taken together, we can get a high-level picture of the City’s financial condition and health.
The reports are attached for a detailed review, and we welcome any follow-up questions for clarity or explanation. The included reports offer three key takeaways:
1. The City’s financial health is strong. As of June 30, 2024, the fund balance analysis indicates that the City maintains a fund balance slightly below its 10% policy level at 9.3% or $20.3 million. The policy goal is an unassigned fund balance of $26.2 million, when adjusted for interfund loans and current year appropriations, the estimated unassigned fund balance is $35 million or 16%.
2. The General Fund is performing as anticipated. Through the first quarter, the revenues and expenditures are in alignment with historical trends. The three expenditure types that most reflect operations-personnel services, operating expenditures, and contract services-are aligned with historical trends.
3. Vacancies continue to be both a positive and a risk. The positive trend is that, given our experience through September (6 pay periods), we estimate a savings of at least $5 million.
At the September 30 reporting, the City had a total of 197 vacancies or about 11.5%. This is largely driven by 119 Police sworn vacancies (26.1%) and 17 911 Communications vacancies (27.9%).
These three components represent significant takeaways from the information provided.
The close of September is an early look at the trends impacting the General Fund and other funds. Detailed reports are attached to provide further detail. It is significant to note that because of the year-end and the accrual processes for the audit, the first quarter does not provide significant insight into the year. With the close of the 2nd and 3rd quarters, we will have a much better picture of the anticipated results from FY 2025.
Budget Impact:
N/A
Options:
N/A
Recommended Action:
Discuss and Receive Report
Attachments:
Presentation
Financial Report