Good afternoon.

I'd like to welcome everyone to our earlier version of study session for this budget special study session for August twenty Tuesday, August twenty-seventh, twenty twenty-four.

I'm going to request um Council Member Snyder to lead us in the Pledge of Allegiance.

A listing.

Since we do have some business to attend to prior to the budget stuff, I have our finance director here to go over the executed contract listing for July, and I'll turn it over to Katrina.

Thank you, Michael.

So you'll recall a month ago we did our first contract listing to share with you.

This is our second one for the month of July.

So the listing in your packet is all the contracts we've executed in the last month, not counting or not including contracts that were executed by purchase order, which would be purchases of goods that are pretty straightforward and low dollar.

One thing I wanted to point out on this, because there are some larger dollar amounts on here.

So we didn't execute an additional 27 million dollars.

It was bringing the total to 27 million dollars in those instances.

So just wanted to point that out.

Um if you have any questions on any of those agreements, I'm happy to address those.

Any questions?

I see none.

All right.

Thank you, Katrina.

Next is uh quarter two financial update.

City Manager Martinez.

Thank you, Mayor.

So officially kicking off the budget process will be our Q2 financial update.

Um, both Anna and Katrina will go over how we're doing overall as a city.

And then after that, we will talk about some some more in-depth budget items, specifically revenues.

I think that one thing maybe we haven't done a good enough job of over the years is explaining the mechanisms of funds that we actually have, how we get them, where they go, and how we're looking when it comes to our 2025-2026 budget.

Really, the bottom line is our revenues obviously drive how our budget is created.

So Anna and Katrina will go over our finances, our revenues, and then we will move into the presented budget.

So with that, I will turn it back over to Katrina.

Thank you, Michael.

So with our Q2 update, we'll be looking at actual results.

Um, so uh actual transactions, revenues, and expenses for the first six months of the year.

Um, and in your packet, there is a more extensive um report that that goes into a lot of detail about how our activities have been how our results have looked over the last six months for our governmental funds as well as our utilities.

That report is also available online.

We make that available to the public.

What we're gonna cover today is just a condensed version highlights, but um always happy to answer questions if there's anything in that report that you saw that you wanted to go over.

So again, our purpose today is to cover the financial results for those first six months of the year.

We're also going to uh look at sales tax revenues because those are on the on the governmental side by far our most uh the largest portion of our revenues.

So the information we're looking at today is was uh based on our financial transactions as of August earlier this month for the first six months of the year.

When we're talking about comparatives, uh, you'll see information in this report saying we are up a certain percentage or down a certain percentage compared to the prior year.

It's compared to that same six months from the prior year, so um not compared to the full year of the prior year.

Um, unless otherwise noted, there is an area where we'll talk about uh full full year spending and full year budget.

Um we are covering in this presentation just governmental fund results, um utility fund results again are discussed in the in the packet that you have in the report you have.

Uh those would take a longer discussion.

Always happy to dive into that.

But for this, because um a lot of the decisions and proposals you'll see today are related to our governmental funds, which is primarily general fund capital, parks capital, those are the ones that we're gonna be focusing on for the purposes of this report.

And again, we'll dive into sales taxes as well.

So, highlights for the governmental funds, um, and again, this is looking at all of those funds in aggregate.

Uh, the themes are, as we've talked about when we did our quarterly update last quarter, is that development is definitely rebounding.

We're seeing a big uptick in uh development and permits being issued, and that drives a lot of our revenue streams.

We're also seeing that people are spending.

Our sales taxes are up this year, pretty notably over last year.

And we have a lot of projects progressing.

So our spending is ahead of last year as well because we have a lot of big projects going on, a lot of spending related to those.

So our uh second quarter, our our first half revenues, um, and you'll see there I say excluding transfers.

Transfers is when we're moving money around amongst our funds.

So uh because that's money moving internally, I exclude that from the analysis here.

Just uh, and also those vary a lot.

Um we'll talk about that a little bit later too.

Uh revenues just shy of 41 million dollars.

That's an increase of 1.8 million compared to the same period last year.