The Financial Review Committee meeting held on April 30, 2024, in Dana Point, California, focused on the city's financial performance for the third quarter. The meeting highlighted a revenue increase of $1.3 million compared to the same period last year, primarily driven by higher investment income, property tax, and reimbursed expenses. Notably, $336,000 of the investment income is linked to the city's restricted Section 115 pension trust, which will be kept in a separate fund.

However, expenditures also rose, exceeding expectations by $376,000. This increase is attributed to higher costs in professional services, data technology, and preliminary planning activities for the regional beach sand project conducted by the San Diego Association of Governments.

During the meeting, committee members raised concerns about discrepancies in the financial narrative and actual expenditures. One member pointed out that while city attorney expenses were reported as lower than the previous year, the line item showed a significant over-budget situation. The discussion emphasized the need for clarity in financial reporting, particularly regarding the use of previous years as a baseline for comparison.

Committee members suggested that a more intuitive approach to tracking expenditures could improve understanding of the budget status. They discussed the importance of accurately reflecting encumbrances and invoices in financial reports to avoid misleading interpretations of the city's financial health.

The meeting concluded with a commitment to review the financial reporting processes to ensure better alignment between narratives and actual financial data. The committee plans to address the identified issues in future meetings, aiming for improved transparency and accuracy in the city's financial management.