TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
Preliminary City Quarter 4 Financial Report Fiscal Year (FY) 2024
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance.
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SUMMARY:
summary
During the adoption of the FY 2025 budget, City Council motioned for staff to return within 45 days of the end of each quarter with a financial report showing budget to actuals in the General Fund. Staff discussed formatting options with the Finance Committee on July 15th. The FY 2024 reporting period is not closed, and revenue and expenses continue to be posted appropriately, this report is preliminary and will change.
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ISSUE:
Preliminary City Quarter 4 Financial Report
RECOMMENDATION:
recommendation
Information Only
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FACTS AND FINDINGS:
The City’s fourth quarter of the year ended on 6/30/2024 with invoices paid by the City and revenues received by the City still being processed through August. As a result, the figures in this report are preliminary and include actuals through July 25th, but do meet the 45 day return request set by City Council.
In reading this report, there are both Citywide figures, General Fund specific figures and a high-level section with an overview of the City’s other funds. At the request of Finance Committee, a new section has been added to the beginning of the report to show a high-level overview of the City fund types and a list of funds that are on a watch list. Additionally, figures (dollars and percentages) that are negative are shown in red font.
Executive Summary
As a reminder, since the fiscal year is not closed for either expenditures or revenues, the figures in this report are all preliminary.
Citywide between all funds, there were overall resources of $880 million and expenditure of $513 million. Approximately 45 percent of resources was from working capital, while 43 percent of expenditures were services, supplies and small equipment and 40 percent being employee costs. Personnel expenditures increased over 8 percent over the prior year, largely due to increases in PERS, collective bargaining agreements and medical benefits.
In the General Fund, preliminary expenditures exceeded preliminary revenues by $9.49M resulting in a decrease of working capital (or savings) by over 25%. The largest expense increases in the General Fund include increases in Fire Department overtime and increased PERS costs due to that overtime, Police Department personnel expenditures, and other professional services paid out of non-departmental for services associated with the Revenue Task Force and polling. It is likely that additional revenue will be posted to FY 2024 through August that will decrease the use of working capital.
General Fund revenues for Property Taxes remained consistent with a 2.9% increase from the prior year and an overall increase of 19 percent in revenues from fees and permits due to the two increases in the City Operations Fee while planning fees decreased. Marijuana Sales Tax increased by 8.0 percent for $103K. Franchise Fees and State Shared Revenues show a dramatic increase of 5.9 percent and 15.9 percent respectively. Due to the timing of when these payments come in, the City does not anticipate revenues to be received until August.
This preliminary report also has a General Fund year to date budget to actuals section and year-over-year of spending by department.
On the first page of the quarterly report, staff added by direction from Finance Committee an indicator page which provides a visual overview of the City finances. The page is displayed with three color indicators: green (positive impact), yellow (negative impact) and red (significant negative impact). Color indicators are determined based on a 10 percent spread. For example, when looking at revenues, if revenue comes in over 100 percent year over year then the color is green. If it is between 90 percent and 100 percent it is yellow. Red is anything under 90 percent. The inverse is true of expenditures. Green indicates an expenditure increase year over year of less that 90 percent, yellow and increase between 90 and 100 percent and finally red color for over 100 percent.
In the top section, the funds are grouped together by fund type. Governmental includes funds where revenues are primarily driven by taxes, such as the General Fund and Transportation. Proprietary Funds are funds that revenues and expenditures operate a more business-like model such as the Utility Fund or Willamette Valley Communications Fund. Finally, Capital and Debt funds includes the Capital Improvements Fund and General Debt fund.
The second section of the page is a fund watch list which provides a view of funds that are of concern or note to staff. For example, the General Fund has both revenues and expenditures noted as being a negative impact due to the lower amount of revenue and a higher amount of expense.
BACKGROUND:
The Budget Office has provided quarterly reports to the Budget Committee and published online for the public for over a decade. These reports are typically provided to the Budget Committee in the winter and spring months during forecast and budget. During adoption of the FY 2025 budget, City Council requested that these reports be provided directly to the City Council within 45 days at the end of a quarter.
Attachments:
1. City Quarter 4 FY 2024 - Preliminary Figures