CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the preliminary 2023 year-end financial report (Item 1 of 2)
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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 2023 budget. 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, 2023. These are preliminary, unaudited numbers and will change as the City continues to pay outstanding 2023 invoices and finalizes year-end accounting entries in preparation for the annual financial audit beginning next month.
DISCUSSION:
In 2023, the City continued to successfully navigate challenging economic conditions that were defined by high inflation, continued supply chain delays, and a tight labor market. Some of these challenges started to ease by mid-year as inflation had moderated from historic highs seen in 2022. Fortunately, continued strength in consumer spending and low unemployment contributed to strong general revenues again this year, which have more than offset some of the rising costs seen over the past two years.
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 revenues above expenses. For the General Fund, this results in an estimated $13 million increase in cash balance, bringing the total balance to $64 million, or 45% of expenditures.
The Electric Utility Fund, however, saw revenues come in well below projections and ended the year with expenses exceeding revenues by $9.7 million, resulting in a declining cash balance.
The Water Capital Fund finished the year with a negative cash balance that will be resolved thr...
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