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Report on 2023 Unaudited Financial Results
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
The Finance Department has finished closing the 2023 fiscal year and the preliminary and unaudited results are available for discussion.
B. Background/Options
At the close of each fiscal year, the Finance Department presents the preliminary financial results. At this time, those results have not been audited. The final audited financial statements are expected in June.
General Fund
The General Fund, ended the year with a $797,180 surplus which equates to 1.1% of total expenditures. The tables below provide detail by expenditures and revenue categories.
General Fund Revenues
In total, actual general fund revenues were 100.7% of budget, a surplus of $545,000. This is broken down by revenue category below.
The graph below uses a "stop-light" formatting to indicate which revenue categories exceeded the revised budget (green), were within 90% of budget (yellow) or were less than 90% (red).
The largest positive variance from the Revised Budget was "48-Miscellaneous" at 170%. While interest earnings were within 3% of the revised budget, the required mark-to-market adjustment increased the surplus by another $1.9 million. As interest rates decrease, bond prices increase so the City's portfolio saw a recovery of the $4.4 million-dollar loss of value in 2022.
So long as the City holds its investments to maturity, which it has sufficient cash to do so, the remaining $2.4 million of market value will be recovered. Due to the volatility of the mark-to-market adjustment made annually as of 12/31 and its non-cash nature, the City does not budget for it.
While this is positive news, it should be noted that the increased market value is less than the overall surplus. This will be discussed in more detail below. The chart below shows the historical changes in value due to the mark-to-market.
"44-Licenses and Permits" exceed budget by 13....
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