CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the Preliminary 2021 Year-End Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
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BACKGROUND:
Regular monitoring and reporting served the City well over the past two years of economic uncertainty driven by the pandemic. Monthly financial reports to the City Council help inform the public on important issues related to City finances, including discussions around short- and long-term financial strategies.
In 2022, staff will continue to monitor and report on national, state, and local economic trends that impact the City's financial position. Monthly reports may also introduce financial topics that require immediate attention or consideration in the next budget cycle. This first report of the year provides a preliminary, unaudited review of the City's 2021 financial results.
DISCUSSION:
While the pandemic continued to impact everyday life in 2021, the City experienced a robust economic recovery, with nearly all revenue streams fully recovering to pre-pandemic levels. Some revenues, such as sales and income taxes, even experienced growth beyond what was normal before the pandemic. The drivers behind some of these experiences, such as the application of sales tax to most online purchases, were discussed throughout 2021 financial reporting. However, other revenues, such as commuter parking fees and hotel and motel tax, remained in recovery.
As most revenues recovered in 2021, new concerns were raised over supply chain issues impacting the City's ability to purchase materials, equipment, and supplies, as well as general price inflation across various economic sectors. Staff closely monitored price inflation for goods and services and remained within budget in most spending categories.
The following is a preliminary review of the City's budget performance in 2021.
Summary by Fund
The table below summarizes actual revenues and e...
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