CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the Preliminary 2022 Year-End Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
This first financial report of the year provides a preliminary, unaudited review of the City's 2022 budget performance. The report provides a high-level overview of the budget and details areas where revenues and expenses outperformed or did not meet expectations.
The report summarizes actual revenues and expenditures recorded through December 31, 2022. These are preliminary, unaudited numbers and will change as the City continues to pay final 2022 invoices and finalizes year-end accounting entries in preparation for the annual financial audit beginning this month.
DISCUSSION:
In 2022, the City continued to navigate the long-term effects of the pandemic on the broader economy. High inflation, continued supply chain delays, and a tight labor market created challenging economic conditions across the United States. For example, in the first half of the year, consumers experienced record-high prices for food, energy, and housing, among other things. In response, the U.S. Federal Reserve began aggressively increasing interest rates, which fueled discussion on an impending recession.
From a financial perspective, the City weathered this uncertainty well throughout 2022. Most general revenue streams produced solid returns, and the impacts of inflation on the City's budget were limited because most expenses, such as personnel costs, are relatively fixed. In addition, while some capital costs rose, several internal and external factors made it difficult to execute the full scope of the planned 2022 capital program, thus offsetting cost increases.
Summary by Fund
Across all funds, total revenues exceeded total expenditures by $20.6 million. Two of the City's three primary operating funds - the General Fund and Water Utility Fund - realized ...
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