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Posted: June 21, 2024
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF062624-04

Agenda Item Title:

Acknowledge May 2024 Treasury and General Fund Update

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
06/26/2024
City Council Hearing Date:
07/01/2024
Petitioner:
Finance Department
Staff Contact:
Daniel Ainslie
Location:
Council Chambers
Agenda Item Summary:
The attached May 2024 Treasury Report includes a breakdown of the City’s $227.9 million in funds. As of the end of May, 72.8% of the City’s available cash is invested in fixed rate instruments as authorized by state statute.

The other attachments illustrate the total cash reserves and designated and undesignated balances for the General Fund. The City’s General Fund Undesignated Cash Reserve improved significantly in May. This is largely due to the cyclical nature of municipal finance where the first half of property taxes was received in May and the typical seasonal increases in consumption which leads to increased sales tax receipts has begun. The undesignated General Fund Balance finished May in a positive level of $6.2 million. Though it is instructive to note that it is still $2.6 million lower than the same time period last year. This is due entirely to the increased reserve requirements (due to the increased total General Fund in 2024) and the increased use of designated funds in 2024.

As previously noted, there will be future supplemental appropriations as a result of CPI increases. The City must still seek to reduce the growth in the expenses within the General Fund and insure that new initiatives are offset by matching new revenue streams.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Acknowledge

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