AGENDA TITLE:
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Receive and File Monthly Financial Report and Register of Claims Pursuant to Government Code Section 41004 (FIN)
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MEETING DATE:
September 4, 2024
PREPARED BY:
Melissa Munoz, Accounting Manager
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RECOMMENDED ACTION:
Receive and File Monthly Financial Report and Register of Claims Pursuant to Government Code Section 41004.
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BACKGROUND INFORMATION:
The report provides the revenue and expenditures through the previous month end. Year-to-date actuals are compared to budget and previous year actuals, for the time frame. No accruals are recorded on the monthly financial report. Except at fiscal year-end, when accruals are recoded per accounting standards, revenue is reported when cash is received and expenditures are reported when cash payments are made. Many revenue and expenditure transactions do not occur at uniform time or equal intervals throughout the year. Making sense of the information presented in the monthly reports requires consideration of cash flow for major revenues and expenditures. For instance, while expenditure outflows for normal operations tend to be relatively even, the cash flow timing of capital expenditures and major revenues, such as property taxes, are not distributed as evenly. Staff will highlight these issues for Council and the public's ease of review on this and future reports through footnotes on the reports.
Financial Report:
This July report shows that both revenues and expenditures are generally aligned with expectations. The City’s conservative budgeting practice and sound fiscal management show that the City is projected to end the fiscal year in an equal or better financial position than it began. As the fiscal year is just beginning, revenues and expenses appear mostly aligned with budgeted projections. In the coming months, more data will allow for more detailed analysis of directional trends. This report is consistent with the adopted Fiscal Year 2024-25 budget and financial plan and any amendments approved by City Council during the Year.
General Fund revenue is seeing an increase in fines/forfeits and penalties from an increase in utility late payments. The increase is expected to be temporary due to seasonally larger bills in the summer and the return to normal collections procedures after the pause in those activities during the Lodi Connect rollout. Community Development revenue is trending higher with more permits pulled for the month of July 2024 that were pulled in July 2023. Construction activity is typically strongest during the dry months of late spring and summer so it is not prudent to rely upon this pace for the entire Fiscal Year. On the expenditure side, General Fund expenditures primarily consist of salary and benefit expenses. Impact Mitigation Fees, American Rescue Plan and Capital budgets and expenditures relate to capital projects and will be spent as the project is ongoing.
Register of Claims:
Transactions shown in the register are consistent with the adopted Fiscal Year 2024-2025 budget and any amendments approved by City Council during the year.
These reports are provided to comply with Government Code Section 41004.0.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.
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Andrew Keys
Assistant City Manager
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Scott R. Carney
City Manager