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HomeMy WebLinkAbout08/15/2023 06.B. 2023 2nd Quarter Financial Report 1 ot `Y�/�' ? s `'°,.,'tea BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 6.B. For Meeting of:August 15, 2023 ITEM TITLE: 2023 2nd Quarter Financial Report SUBMITTED BY: Rosylen Oglesby,Assistant City Manager/Interim Director of Finance & Budget *Kimberly Domine, Financial Services Manager SUMMARY EXPLANATION: The Second Quarter Financial Report for 2023 is attached and consists of the following: • Summary Narrative • Financial Reports • Cash Balance Trend • Material Revenue Performance Charts • Fund Balance Summary • Revenue and Expenditure Comparison to Budget and Actual Year to-Date • General Government Revenue Historical Year-to-Date Detail • General Government Expenditure Historical Year-to-Date Detail • Other Funds - Revenue, Expenditure and Fund Balance Summary This is an informational update, pending completion of year-end close process and independent audit. ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: Description Upload Date Type ❑ 2023 2nd Quarter Financial update 8/4/2023 Corer Memo 2 =1Oti*:i FINANCE DEPARTMENT h88 . To: Honorable Mayor and Members of the City Council Bob Harrison,City Manager From: Rosylen Oglesby,Assistant City Manager Kimberly Domine,Financial Services Manager Kathy Miles,Finance Department Analyst Date: August 15,2023 Subject: 2023 2nd Quarter Financial Update This financial update is a preliminary, unaudited,report for the 2nd quarter ended June 30,2023,two quarters,or 50%of the year,intended to inform and assist governance decisions for future planning. In total,city revenues are at 40.5%of budget and expenditures are at 36.7%of budget. The timing of certain revenue payments and Capital fund expenditures are normally the biggest reasons that revenues and expenditures are below 50%at this point in the year. Cash position and revenue charts on the following pages provide insight into the monitoring of revenue and the management of expenses. The Quarterly Treasury report,a separate report also available on the City's website,provides further cash and investment analysis. This report is not a final report,as the annual independent audit for 2023 will not be completed until later in 2024,which may affect final numbers. COVID's Economic Effects on City Revenues The American Rescue Plan Act (ARPA) funds have impacted budgeted revenues and expenses,affecting "normal"budgetary percentages in the accompanying reports uniquely for 2021 through 2023,and will likely do so until 2026,when this funding is required to be spent. The economic effects of COVID and the CARES Act also affected the budget uniquely,further complicating comparison to prior years. As has been monitored and reported continuously,there was a substantial economic impact to many of the City's budgeted revenues as a result of the pandemic. Revenues In more detail,actual Sales Tax revenue is keeping pace with the general economy at this time,currently at 103.1%of the second quarter last year,and currently exceeding budgeted amounts by 22.5%. Significant categorical differences from last year are: • Other services continue to be up over 10%,a trend that began in the last half of 2021, up 11.8%, with general auto repair services remaining the largest contributor. • Construction is currently is showing an increase of 9.2%over last year,with new single-family and multi family housing construction being the major components. Finance Quarterly Report-Page 1 3 • Accommodations and food services are up 8.1%,generally split between all areas,likely due to inflation. • The Wholesale category is currently at 6.7%,with the largest increases in industrial machinery equipment. • Miscellaneous other is at (3.5%),mainly due to a surge in Healthcare and Social Assistance in the first quarter of 2023. Lodging Tax had a significant downturn in 2020 and 2021 due to the economic effects of the COVID pandemic but improved significantly in 2022. This trend continues into 2023,with Lodging Tax up 21.5% from budgeted amounts in the 2nd quarter. Fire Inspection Fees decreased drastically during 2020 and into 2021 due to COVID,and began improving in 2022,but are still performing below budget expectations due to staffing issues. General Fund's Performance to Budget General Fund Revenues in total are at 50.5%. The most significant variances are: • Other Revenue-mainly investment and sales tax interest-is at 70.1%in the 2nd quarter, normal for this time of year, due the the timing of incoming revenues. • Property Tax is at 57.6%in the 2nd quarter of the year. Variances in this category are mainly due to the timing of Property Tax receipts,which are higher in the months of April and November. • Utility and Franchise taxes are currently at 53.8%of the Amended Budget,most likely due to the timing of utility payments and rate increases for 2023. • Other Taxes,consisting of mainly gambling taxes,are at 38.0%,which is normal in the2nd quarter,also due to the timing of incoming revenue payments. General Fund Expenditures in total are at 50.6%. The most significant variances are: • Intergovernmental revenues (71.8%)are above 50%mainly due to the timing of payments. • Police Pension is at 78.6% due to the Collective Bargaining Agreement (CBA) adjustment posted in January. • Firemen's Relief/Pension is at 59.0%,also due to CBA adjustments in the first quarter. • Information Technology,Code Administration,Human Resources,Planning and City Council are currently under 40%of expenditures,mostly due to the timing of invoices received. General Fund Balance The General Fund,which provides for public safety and general government services,was negatively affected by the downturn in the fair value rate for investment interest at the end of the year. The City of Yakima is required by General Accepted Accounting Principles (GAAP)to report investments at fair market value. In the 2nd quarter of 2023,the General Fund balance is continuing to erode,with a reduction of$1.3 million. This amount is likely to change as the year progresses,but is an indicator of what is currently trending. Finance Quarterly Report-Page 2 4 CASH POSITION AND REVENUE UPDATE City staff monitors revenues and manages expenses continuously. Cash& Investments As a current over-all indicator,the 4-year historic core city-wide cash and investments balance trend shows June at$147.9 million. Each month is best compared to the same month in previous years to account for seasonality and other annual events. CASH AND INVESTMENTS HISTORY $175,000,000 - $150,000,000 - $125,000,000 - $100,000,000 - $75,000,000 - $50,000,000 - $25,000,000 - $0 ��� ��� ��\tip ��V,yo�����yo�����yo ��V`-15 �V`1> ,oA.yti(00 ���o�� ��,\V`1> , A`-1 qe V`19' , V` v o�yti���oA`lge ,vvy (00o�y3 (00 Sales Tax This is the largest single funding source for the city. The 2nd quarter city-wide cumulative revenue of $13.7 million exceeds the cumulative budget by$2.5 million or 22.5%and is greater than prior year by $399,640. The city receives sales tax from the State on a 2-month lag from the actual point-of-sale transactions so these figures are for actual transactions through April. Rising inflation, unchanged spending and consumption by end users have all influenced the increase of revenues from sales tax receipts. Due to staff shortages,the 2022 revenue for July was not posted until August,creating the anomaly in the graph below. The graph below shows General Fund Sales Tax revenues(General Sales Tax (001) and Criminal Justice Sales Tax (003) -as seen on page 10). SALES TAX REVENUE $30,000,000 - $20,000,000 - $10,000,000 - II III Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative 111 Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 3 5 Property Tax The 2nd quarter cumulative Property Tax revenue is tracking right on budget. The 2023 budget increased by$635,459 due to assessed valuations (a combination of the existing cap at 1%and new growth). The following graph includes city-wide property tax revenue. PROPERTY TAX REVENUE $30,000,000 $20,000,000 $10,000,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Water The 2nd quarter cumulative water operating revenue of$4.7 million through June is above budget by $280,519. A rate increases of 5%went into effect in January of 2023. January 2022 was overstated,as there was a billing error in January that was corrected in February. WATER REVENUE $15,000,000 - $10,000,000 - $5,000,000 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative •Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 4 6 Wastewater The 2nd quarter cumulative wastewater operating revenue of$10.9 million is up$814,702 over budget and$386,577 over prior year. A cost of service and rate study for the division was planned and budgeted for 2022,but will not be completed until 2023. WASTEWATER REVENUE $30,000,000 - $20,000,000 - $10,000,000 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Stormwater The 2nd quarter cumulative operating assessments of$2,507,807 is up$2,809 over budget,and$12,858 below prior year. This is consistent with prior years due to the timing of payments. For the provision of stormwater compliance and stormwater collection services a tax is levied against the total assessments collected from annual stormwater assessment charges at the current rate of fifteen percent. STORMWATER REVENUE $5,000,000 - $4,000,000 - $3,000,000 - — $2,000,000 - $1,000,000 - II II Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 5 7 Refuse The 2nd quarter cumulative automated residential revenue of$4.0 million is up$438,763 over budget and$346,669 over prior year. An average 3.5%rate increase in Refuse rates was approved by Council for each year 2021 through 2025 as reflected in the 2023 budget. REFUSE REVENUE $10,000,000 - $7,500,000 - $5,000,000 - $2,500,000 - $0 t t 1 • Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Lodging Tax The 2nd quarter cumulative revenue of$698,887 is up$123,892 over budget and up$51,237 compared to prior year. The comparison of each month's revenue to the same month in prior year improved throughout 2022,and into the 2nd quarter of 2023,showing steady improvement. LODGING TAX REVENUE $2,000,000 - $1,500,000 - $1,000,000 - $500,000 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec al Budget Cumulative •Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 6 8 Real Estate Excise Tax (REET I & II,combined) The 2nd quarter cumulative revenue for REET of$1,104,491 is$320,264 under budget and$490,828 below prior year,which it is believed is due to higher mortgage rates and the ensuing drop in home sales activity. REET 1/REET 2 $4,000,000 - $3,000,000 - $2,000,000 - $1,000,000 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative S Current Year Cumulative Prior Year Cumulative Building Permits After a slow start in 2022,the 2nd quarter cumulative revenues of$382,046 are up$77,713 over budget and up$11,858 from 2022. Permit activity shows that there were 637 permits for 157 dwelling units in the 2nd quarter for 2023,compared with 513 permits for 189 dwelling units in 2022,with the difference in permit type mainly within the residential alteration category. BUILDING PERMIT REVENUE $i,000,000 - $750,000 - $500,000 - $250,000 - $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Budget Cumulative Current Year Cumulative Prior Year Cumulative Finance Quarterly Report-Page 7 9 CITY-WIDE FUND BALANCE SUMMARY CHANGE IN FUND BALANCE 2023 As of June 30 %of %Change Beginning 2023 2023 Ending Amended in Fund Balance Actual Rev. Actual Exp. Balance Budget Balance General Fund(001) 9,534,450 34,351,493 35,328,930 8,557,013 12.2% (10.3)% Criminal Justice(003) 1,457,735 1,553,044 1,864,321 1,146,458 30.5% (21.4)% Firemen's Relief&Pension(612) 1,587,704 578,356 570,303 1,595,757 165.0% 0.5% General Fund Subtotal $ 12,579,889 $ 36,482,893 $ 37,763,554 $ 11,299,228 15.1% (10.2)% Parks and Recreation 563,546 3,274,575 2,587,137 1,250,984 20.1% 122.0% Street&Traffic Operations 1,537,274 3,127,693 2,569,813 2,095,154 31.9% 36.3% General Government Subtotal 14,680,709 42,885,161 42,920,504 14,645,366 114.5% (0.2)% Other Governmental Operating Funds 8,229,941 9,662,473 10,014,319 7,878,095 20.1% (4.3)% Government Capital Funds 17,373,589 4,429,288 4,770,962 17,031,915 57.9% (2.0)% Enterprise Operating Funds 31,675,625 31,418,073 30,881,127 32,212,571 45.4% 1.7% Enterprise Capital Funds 79,869,102 9,635,874 7,628,253 81,876,723 175.6% 2.5% Internal Service Funds 7,718,292 5,169,614 5,290,631 7,597,275 54.2% (1.6)% Employee Benefit Reserve 4,512,663 7,950,670 8,716,980 3,746,353 21.7% (17.0)% Risk Management Reserves 6,748,375 3,017,878 3,238,953 6,527,300 100.8% (3.3)% Debt Service&Agency Funds 7,294,958 4,514,004 3,470,927 8,338,035 122.0% 14.3% Total $178,103,254 $118,683,035 $116,932,656 $179,853,633 73.8% 1.0% This is a progress report to provide transparency and accountability. This table shows fund balances by fund at this point in time. This is intended to provide transparency and accountability but is a snapshot, not a reliable measure of predicted year-end. The ending fund balance in the General Fund (001)has been reduced to 12.2%at this point in time,which falls below Council policy of maintaining 16.7%of reserves. Staff and Council continue budget discussions to review options,new revenues or budget reductions to comply with reserve policies. Note: Parks and Recreation revenues increased in 2023 due to a reallocation of property tax (from General Fund) for salaries and wages,mainly due to the minimum wage increase. Finance Quarterly Report-Page 8 10 CITY WIDE REVENUES & EXPENDITURES BY FUND GROUPING REVENUE COMPARISON (Budget vs.Actual) 2022 2023 Annual Annual Amended Actual % Amended Actual cyo Budget as of 6/30 Rec'd Budget as of 6/30 Rec'd General Fund $ 70,544,525 $ 33,981,029 48.2 % $ 72,222,571 $ 36,482,893 50.5 % Parks and Recreation 5,710,259 2,695,722 47.2 % 6,162,753 3,274,575 53.1 % Street&Traffic Operations 6,478,808 3,162,140 48.8% 6,415,663 3,127,693 48.8% General Government Subtotal 82,733,592 39,838,891 48.2 % 84,800,987 42,885,161 50.6% Other Government Operating Funds 46,513,849 20,204,317 43.4% 38,566,372 9,662,473 25.1 % Government Capital Funds 41,148,287 3,990,240 9.7% 22,260,559 4,429,288 19.9 % Enterprise Operating Funds 69,830,538 29,526,062 42.3 % 66,220,984 31,418,073 47.4% Enterprise Capital Funds 38,366,070 13,138,211 34.2 % 39,855,154 9,635,874 24.2 % Internal Service Funds 12,049,036 4,528,741 37.6% 10,762,133 5,169,614 48.0% Employee Benefit Reserves 17,700,231 7,600,814 42.9 % 18,292,441 7,950,670 43.5 % Risk Management Reserve 5,873,577 3,104,411 52.9 % 5,438,458 3,017,878 55.5 % Debt Service&Agency Funds 7,100,227 4,634,401 65.3 % 6,837,743 4,514,004 66.0% Total $ 321,315,407 $ 126,566,088 39.4% $ 293,034,831 $ 118,683,035 40.5 % EXPENDITURE COMPARISON (Budget vs.Actual) 2022 2023 Annual Annual Amended Actual % Amended Actual cyo Budget as of 6/30 Exp'd Budget as of 6/30 Exp'd General Fund $ 72,847,262 $ 31,290,826 43.0% $ 74,686,655 $ 37,763,554 50.6% Parks and Recreation 6,386,672 2,652,649 41.5 % 6,233,727 2,587,137 41.5 % Street&Traffic Operations 6,567,056 2,665,539 40.6% 6,558,038 2,569,813 39.2 % General Government Subtotal 85,800,990 36,609,014 42.7% 87,478,420 42,920,504 49.1 % Other Government Operating Funds 38,743,539 7,684,948 19.8% 39,186,051 10,014,319 25.6% Government Capital Funds 37,008,593 3,783,876 10.2 % 29,412,187 4,770,962 16.2 % Enterprise Operating Funds 75,163,417 33,554,413 44.6% 70,983,688 30,881,127 43.5 % Enterprise Capital Funds 58,471,085 7,539,667 12.9 % 46,634,813 7,628,253 16.4% Internal Service Funds 13,124,430 4,713,644 35.9 % 14,021,923 5,290,631 37.7% Employee Benefit Reserves 17,265,080 8,614,058 49.9 % 17,272,153 8,716,980 50.5 % Risk Management Reserve 5,555,497 3,319,001 59.7% 6,477,822 3,238,953 50.0% Debt Service&Agency Funds 7,100,520 3,451,915 48.6% 6,837,234 3,470,927 50.8% Total $ 338,233,151 $ 109,270,536 32.3 % $ 318,304,291 $ 116,932,656 36.7% Finance Quarterly Report-Page 9 11 GENERAL GOVERNMENT REVENUE DETAIL GENERAL GOVERNMENT REVENUES 2023 2023 Revenues as of June 30 Amended Percent General Fund 2021 2022 2023 Budget Rec'd Property Tax $ 5,164,793 $ 5,342,593 $ 5,311,816 $ 9,229,468 57.6% General Sales Tax 10,343,662 10,841,479 11,175,424 24,247,000 46.1 % Criminal Justice Sales Tax 2,110,294 2,423,548 2,489,243 5,207,000 47.8% Utility&Franchise Taxes 10,141,099 9,784,175 10,945,543 20,334,354 53.8% Other Taxes 301,478 348,543 422,487 1,112,400 38.0% Licenses and Permits 805,960 890,527 968,992 1,908,700 50.8% Intergovernmental Revenues 14,717,128 1,928,669 1,741,077 3,948,703 44.1 % Charges for Services 3,673,933 1,418,231 1,506,947 3,105,310 48.5 % Fines and Forfeitures 659,023 589,894 632,453 1,291,000 49.0% Other Revenue 581,245 413,370 1,288,911 1,838,636 70.1 % Total General Fund 48,498,615 33,981,029 36,482,893 72,222,571 50.5 % Parks&Recreation Property Tax 1,536,122 1,485,575 1,775,716 3,173,716 56.0% Intergovernmental Revenues 5,958 26,166 11,915 64,830 18.4% Charges for Services 333,933 464,129 457,573 907,615 50.4% Other Revenue 1,094,676 719,852 1,029,371 2,016,592 51.0% Total Parks&Recreation 2,970,689 2,695,722 3,274,575 6,162,753 53.1 % Streets Property Tax 2,451,144 2,445,946 2,461,831 4,400,000 56.0% Intergovernmental Revenues 647,040 684,021 662,119 1,488,000 44.5 % Charges for Services 253,720 2,932 1,475 527,663 0.3 % Other Revenue 39,385 29,241 2,268 — n/a Total Streets 3,391,289 3,162,140 3,127,693 6,415,663 48.8% Total General Government $ 54,860,593 $ 39,838,891 $ 42,885,161 $ 84,800,987 50.6% Note: Year to date revenues above are consistent with historical trends. Finance Quarterly Report-Page 10 12 GENERAL GOVERNMENT EXPENDITURE DETAIL GENERAL FUND EXPENDITURE DETAIL 2023 Expenditures as of June 30 Amended Percent General Fund 2021 2022 2023 Budget Exp'd Police $ 13,654,857 $ 14,154,452 $ 17,444,313 $ 33,884,703 51.5 % Fire 7,743,017 8,146,379 9,661,707 17,257,776 56.0% Information Technology 2,054,530 1,991,815 1,827,518 4,657,840 39.2 % Finance 1,107,242 1,207,894 1,211,391 2,684,943 45.1 % Legal 1,002,973 1,013,906 1,101,870 2,332,556 47.2 % Municipal Court 824,533 839,483 1,117,185 2,192,980 50.9 % Code Administration 897,865 843,875 784,675 2,030,022 38.7% Indigent Defense 546,859 568,078 756,455 1,500,000 50.4% Human Resources 356,902 356,854 456,969 1,303,967 35.0% Engineering 452,425 401,990 516,832 1,104,257 46.8% Firemen's Relief/Pension 580,142 549,270 570,303 966,840 59.0% Planning 360,123 358,418 291,479 956,252 30.5 % City Clerk/Records 248,624 259,898 395,366 839,064 47.1 % City Management 384,064 376,564 328,548 711,898 46.2 % Police Pension 387,099 318,138 500,806 637,130 78.6% Economic Development 158,958 230,357 314,194 599,493 52.4% City Hall Facility 186,663 207,055 232,709 515,704 45.1 % Purchasing 212,127 219,131 181,911 486,136 37.4% City Council 144,184 148,792 169,516 284,813 59.5 % Intergovernmental 76,563 86,760 98,469 137,189 71.8% Interfund Distributions 1 1,278,413 (1,028,343) (198,454) (396,908) 50.0% Parking 2 46,807 40,061 (208) - n/a Clean City Fund 3 145,790 n/a Total General Fund 32,850,760 31,290,827 37,763,554 74,686,655 50.6% 1 As of 2021 City Service charges are required to be shown as a reimbursement of expense instead of a revenue per the State Auditor.This change was implemented by the City at the end of the 2021 fiscal year. These numbers can vary dependent upon the timing of the City Services Reimbursements and transfers out. 2 Parking was moved into the Police department as of 2023. A final journal entry will be done for 2023 once all reoccurring charges have expired. 3 The Clean City Fund,originally set up as part of the General Fund,was authorized as a special revenue fund by ordinance on 9/7/21. Finance Quarterly Report-Page 11 13 OTHER FUNDS DETAIL OTHER GOVERNMENT OPERATING FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Neighborhood Development 1,204,804 194,526 623,535 775,795 (35.6)% Community Relations 778,111 290,951 312,738 756,324 (2.8)% Clean City Program 269,222 416,916 328,384 357,754 32.9% Cemetery 192,236 193,430 187,454 198,212 3.1% Emergency Services 204,613 982,327 929,602 257,338 25.8% Public Safety Communication 1,623,079 2,348,161 1,993,940 1,977,300 21.8% Police Grants 948,530 89,757 45,669 992,618 4.6% PBIA(Park/Bus Improvement Area) 77,990 154,041 48,994 183,037 134.7% Trolley 42,535 6,869 1,022 48,382 13.7% Front Street Bus Improvement Area 8,013 2,096 - 10,109 26.2% Convention&Event Center 716,785 934,930 1,063,174 588,541 (17.9)% Capitol Theatre 102,725 205,128 206,446 101,407 (1.3)% PFD-Convention Center 1,204,762 481,977 755,142 931,597 (22.7)% Tourism Promotion Area 143,220 452,778 452,778 143,220 -% PFD-Capitol Theatre 645,616 365,129 449,786 560,959 (13.1)% American Rescue Plan Act(ARPA)1 67,700 2,543,457 2,615,655 (4,498) (106.6)% Total Other Gov't Operating Funds $ 8,229,941 $ 9,662,473 $ 10,014,319 $ 7,878,095 (4.3)% GOVERNMENTAL CAPITAL FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Central Bus District Capital 55,024 - - 55,024 -% Capitol Theatre Construction 86,977 140,000 26,488 200,489 130.5% Yakima Redevelopment Area 330,542 7,143 251,199 86,486 (73.8)% Parks&Recreation Capital 12,181 413,545 299,001 126,725 940.3% Fire Capital 510,237 95,500 7,617 598,120 17.2% Law and Justice Capital 1,431,977 212,971 680,793 964,155 (32.7)% Public Works Trust Construction 4,323,052 594,470 1,285,066 3,632,456 (16.0)% REET 2 Capital 1,535,139 552,246 779,070 1,308,315 (14.8)% Street Capital 4,281,860 803,725 429,386 4,656,199 8.7% Street Overlay&Reconstruction 2,719,374 1,235,794 883,905 3,071,263 12.9% Cony&Event Center Cap Impr 1,758,805 373,894 128,437 2,004,262 14.0% Reserve for Capital Improvement 328,421 - - 328,421 -% Total Gov't Capital Funds $ 17,373,589 $ 4,429,288 $ 4,770,962 $ 17,031,915 (2.0)% 1 The American Rescue Plan Act(ARPA)Special Revenue Fund(180)was created to account for funds received from the Office of Financial Management(OFM)to aid in the recovery from the budgetary,economic,and financial impacts of the COVID pandemic. The fund balance can become negative due to the timing of journal entries,as expenditures are only accounted for as the revenue is spent. Finance Quarterly Report-Page 12 14 ENTERPRISE OPERATING FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Airport Operating $ 1,635,649 $ 682,495 $ 680,275 $ 1,637,869 0.1% Stormwater Operating 1,267,415 3,145,821 1,663,245 2,749,991 117.0% Transit Operating 11,403,186 4,550,208 4,541,534 11,411,860 0.1% Refuse 4,692,814 4,786,438 4,140,484 5,338,768 13.8% Wastewater Operating 5,544,388 12,177,145 12,456,253 5,265,280 (5.0)% Water Operating 6,710,123 4,993,441 6,158,773 5,544,791 (17.4)% Irrigation 422,050 1,082,525 1,240,563 264,012 (37.4)% Total Enterprise Operating Funds $ 31,675,625 $ 31,418,073 $ 30,881,127 $ 32,212,571 1.7% ENTERPRISE CAPITAL FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Airport Capital 2 $ (557,072) $ 37,180 $ 517,618 $ (1,037,510) 86.2% Stormwater Capital 5,130,919 325,000 147,320 5,308,599 3.5% Transit Capital 13,584,291 3,360,195 3,383,041 13,561,445 (0.2)% Wastewater Facilities Capital 5,911,188 489,917 236,410 6,164,695 4.3% Wastewater Construction Capital 12,021,608 500,000 189,584 12,332,024 2.6% Wastewater Capital 8,830,837 1,250,000 1,200,269 8,880,568 0.6% Water Capital 8,533,032 2,733,532 104,486 11,162,078 30.8% Irrigation Capital 26,414,299 940,050 1,849,525 25,504,824 (3.4)% Total Enterprise Capital Funds $ 79,869,102 $ 9,635,874 $ 7,628,253 $ 81,876,723 2.5% INTERNAL SERVICE FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Equipment Rental $ 5,809,840 $ 2,950,731 $ 2,834,886 $ 5,925,685 2.0% Environmental 650,475 108,988 185,554 573,909 (11.8)% Public Works Administration 690,385 716,725 689,509 717,601 3.9% Utility Services 567,592 1,393,170 1,580,682 380,080 (33.0)% Total Enterprise Operating Funds $ 7,718,292 $ 5,169,614 $ 5,290,631 $ 7,597,275 (1.6)% 2 The Airport Capital fund can be negative due to the timing of grant reimbursements,however,the operating fund combined with the capital fund continues to remain in the positive. Finance Quarterly Report-Page 13 15 EMPLOYEE BENEFIT RESERVES 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Unemployment Comp Reserve $ 433,785 $ 146,029 $ 71,137 $ 508,677 17.3% Employees Health Ben Reserve 3,945,093 6,691,556 6,913,958 3,722,691 (5.6)% Worker's Comp Reserve 3 (52,304) 1,113,085 1,709,550 (648,769) n/a Wellness/EAP 186,089 - 22,335 163,754 (12.0)% Total Employee Benefit Reserve $ 4,512,663 $ 7,950,670 $ 8,716,980 $ 3,746,353 (17.0)% RISK MANAGEMENT RESERVE 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance Risk Management Reserve $ 6,748,375 $ 3,017,878 $ 3,238,953 $ 6,527,300 (3.3)% DEBT SERVICE &AGENCY FUNDS 2023 As of June 30 %Change Beginning 2023 2023 Ending in Fund Fund Balance Actual Rev. Actual Exp. Balance Balance GO Bond Redemption 2002 GO Convention Center $ 223,141 $ 675,537 $ 309,534 $ 589,144 164.0% 2005 GO Various Bonds 4 17,626 1,644,214 2,218,332 (556,492) n/a Total GO Bond Redemption $ 240,767 $ 2,319,751 $ 2,527,866 $ 32,652 (86.4)% Water/Sewer Revenue Bond Redemption WW Rev Bond&2008 Debt Service $ 678,134 $ 191,400 $ 22,000 $ 847,534 25.0% Irrigation Bond Debt Service 397,281 138,300 34,000 501,581 26.3 % WW Rev Bond Rsv&2012 Debt Svc 3,832,740 582,400 14,933 4,400,207 14.8% Total W/S Rev Bond Redemption $ 4,908,155 $ 912,100 $ 70,933 $ 5,749,322 17.1 % Agency Funds YakCorps $ 1,109,166 $ 673,166 $ 274,390 $ 1,507,942 36.0% Custodial Fund 307,761 596,442 591,738 312,465 1.5 % Cemetery Trust 729,109 12,545 6,000 735,654 0.9 % Total Agency Funds $ 2,146,036 $ 1,282,153 $ 872,128 2,556,061 19.1 % Total Debt Service&Agency Funds $ 7,294,958 $ 4,514,004 $ 3,470,927 $ 8,338,035 14.3 % ---End of Report 3 The Workers Compensation fund experienced greater claim activity in 2022,which was corrected by an increase in rates for 2023. However, claims are currently at 76%in the second quarter of 2023. This situation is being reviewed and a rate adjustment is planned. 4 Fund balance may be negative due to the timing in interest accrual payments.These numbers should correct by year-end. Finance Quarterly Report-Page 14