08-12-2020 Council Packet - Laserfiche WebLink

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1st Half Current Property Tax Collections As discussed prior in this report, the 1st half property tax deadline was extended to July 15th for certain taxpayers due to the pandemic. The 2020 tax collections from May 15th to July 15th are unknown at this time. Any decrease in the property tax collection percentage will not be known until we receive the 2nd half settlement in December. The City takes a conservative approach when preparing the budget by only including a 97.5% collection rate in the General Fund. For every additional 1% decline in the property tax collection rate below the 97.5% collection rate, the General Fund will experience an approximate $32,000 reduction in revenue. 2019 Flooding While $73,000 in FEMA reimbursement revenue was received in 2019 for the County Road B-2 storm sewer washout, the $64,644 in FEMA reimbursement revenue for the Twin Lake flooding operations was not received until August 2020. Since the $64,644 was not received in time to be recorded in 2019, the revenue will be recorded in the 3rd Quarter 2020. This will have a positive impact on the 2020 General Fund Balance. Special Revenue and Enterprise Funds The Quarterly Financial Report for the special revenue and enterprise funds is attached to this report. The utility funds (Recycling & Disposal, Water Operating and Sewer Operating) contain one quarter of revenue, due to the timing of the billing cycle. 1st quarter bills (January-March) were recorded in April when the bills were generated. The 2nd quarter bills (April-June) will be recorded in July when the bills were generated. Council approved waiving the late fees on the 1st quarter utility bills due to COVID-19. Approximately $9,185 in late fees were not added onto the utility customer accounts. The breakdown by fund was: Fund Total Recycling & Disposal $1,933 Water Operating 3,059 Sewer Operating 4,193 Total $9,185 Investments As of June 30, 2020, total cash and investments for all City Funds totaled $14,592,743, and the allocation by investment type is as follows: Type Amount Percentage Money Market $11,829 .08% 4M money market 1,960,983 13.44% CD’s 11,763,343 80.61% Agencies - 0% Municipal Bonds $856,588 5.87% Total $14,592,743 100.00% Because all the CD’s that the City holds are under $250,000, they are FDIC insured except for the RCU CD.Since the RCU CD is over the insurance limits, it is collateralized as per the City’s investment policy. All current investments are within the State Statute guidelines. 4