CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the preliminary 2024 year-end financial report
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
This report provides a preliminary, unaudited review of the City's 2024 budget through December 31. The report provides a high-level overview of the budget and details areas where revenues and expenditures outperformed or did not meet expectations.
The report includes revenue and expenditure activity recorded through Feb. 7, 2025. There will continue to be minor changes to the numbers presented as the City continues to pay outstanding 2024 invoices and finalizes year-end accounting entries in preparation for the annual financial audit.
The accompanying PowerPoint presentation will be distributed on Monday, March 3 with the Q&A.
DISCUSSION:
In 2024, the City benefited from generally favorable economic conditions. Strength in the state and local economies supported general operating revenues that met or exceeded expectations in most cases. However, as staff expected, the sharp revenue growth rate of the pandemic years, partly fueled by inflation and changing consumer behaviors, began to slow down. Historically high inflation subsided throughout the year and ended 2024 below 3% nationally.
In some areas, including utility equipment and capital construction projects, ongoing supply chain constraints and resource competition continued to drive higher prices. Those challenges remained manageable, and the City's overall financial outcomes were positive.
Summary by Fund
Across all funds, total expenditures of $571.03 million exceed revenues by $11.36 million. While the budget included the strategic use of reserves in some funds, there were some unexpected variances in others.
In the General Fund, revenues exceeded expenditures, adding an estimated $5.2 million to the already healthy cash balance.
The Water Utilities Fund had a loss o...
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