TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Josh Eggleston, Chief Financial Officer
SUBJECT:
title
City of Salem Quarterly Financial Reports
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 approved a motion 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. The FY 2024 Quarter 4 (Q4) Final Financial Report reflects all audited activity for the fiscal year. FY 2025 Quarter 1 (Q1) Financial Report reflects all activity posted through the closed months ending September 30, 2024. FY 2025 Quarter 2 (Q2) Financial Report reflects all activity posted through the closed months ending December 31, 2024.
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ISSUE:
Information only.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
Fiscal Year 2024 Report
The quarterly reports compare budget to actuals as well as year over year changes for the General Fund, all other City funds, and information on position vacancies. The final Q4 report reflects activity through June 30, 2024, and figures published in the audited financial statements.
Fiscal Year 2025 Reports
The final Q1 report displays financial information through September 30, 2024, which now includes fund balances reflecting the City’s FY 2024 audited financial statements. Draft versions of both the Q4 and Q1 reports have appeared on previous City Council agendas.
The City’s second quarter ended December 31, 2024, and the period was officially closed January 9, 2025. The City’s second quarter financial report reflects financial activity for half of fiscal year 2025. The following narrative will focus on the FY 2025 Q2 report.
In Q2, citywide resources totaled $682,064,934 and expenditures were $242,795,445.
On the first page of the City’s Q2 report, the General Fund activity is shown by types of resources and expenditures by department.
General Fund resources through December totaled $147,486,070. 54.5% of receipts are from property taxes, which is the largest source of revenue in the General Fund. Overall, resources received are 70.3% of total budgeted amounts. Beginning working capital is lower by 4.2% compared with last fiscal year as a portion of fund balance was spent to pay for services in FY 2024.
The largest expenditure category in the General Fund is Personal Services totaling $66,510,241 or 80.0% of total expenditures. So far 46% or 12 out of 26.1 pay periods have been completed. The second largest expenditure category is materials and services totaling $15,753,587 or 19.0% of total expenditures. Overall fund expenditures are 43.5% of total budgeted amounts.
The second page shows all other City funds and the activity as of December 31, 2024. The Utility Fund had the largest expense at $60,149327 or 37.7% of total of other fund expenditures.
The last page shows a summary of position vacancies across the organization. The total number of authorized positions to start the period in July 2024 was 1,360.25 full time equivalent (FTE) positions. 63.25 FTE new positions were added: 60 in the Emergency Services Fund and 1 in the General Fund to support new City ambulance services, 2 Information Technology positions to support the Enterprise Resource Planning Software implementation, and .25 in Information Technology adding to two part time positions combining to create a full-time position. These position additions bring the citywide total to 1,423.5. The quarter started with vacancies of 127.75 FTE and ended with 179.5 FTE. This increase in vacant positions is mostly attributable to the added positions for City-provided ambulance service starting July 1, 2025.
BACKGROUND:
The Budget Office has provided quarterly financial reports to the Budget Committee and published them online for many years. 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 of the end of a quarter.
Emese Bihari
Management Analyst II
Attachments:
1. City FY 2024 Final Quarter 4 Financial Report
2. City FY 2025 Final Quarter 1 Financial Report
3. City FY 2025 Quarter 2 Financial Report