Information Only

General Fund - March 2020 (See attachment)

This early in the year, the timing of one of two large receipts or payments tend to skew the variances. 

Revenue Variances (+/- 10% of 25% target)

• The 1st half property tax settlement will be received in June.
• Special assessments is a negative amount due to the payments to Republic Services for delinquent garbage assessments.  Similar to last year, this account will be negative until we receive our first and second half tax payments.
• Investment income has not been posted to miscellaneous revenue.  We typically wait to allocate the first few months of interest until the previous year is closed and ending cash balances within all the funds have been finalized for a more accurate interest allocation.

Expenditures Variances (+/- 10% of 25% target)

• In total departmental expenditures are within the normal range and similar to last year's expenditures through March.
• Mayor and Council departmental expenditures currently exceed the targeted amount as a result of annual dues and memberships paid at the beginning of the year.
• Natural Resources departmental expenditures currently exceed the targeted amount as a result of payments to Shadywood Tree Experts and Landscaping paid at the beginning of the year.

Community Center/Ice Arena/Sand Venture - March 2020 (See attachment)

Similar to the analysis of the City's General fund, reviewing revenue and expenditures early in the year can be easily skewed depending upon what type of transactions did or did not occur.  Revenues of the Community Center and Ice Arena operations have been impacted by COVID-19. 

Ice Arena

• Ice Arena revenues are behind in terms of budget targets and comparison to the previous year, primarily related to a few larger ice rental payments for January/February that had not yet been received.  Ice Arena operations were closed as of March 17th.

Community Center

• Community Center revenues are behind in terms of budget targets and comparison to the previous year, primarily related to Community Center operations being closed since March 17, as well as a significant amount of registration refunds issued in March.

Quarterly Investment Portfolio Report - Q1, 2020 (See attachment)

Attached is the 1st quarter investment portfolio report including a cover page that provides a comparison of investment results over the past four years.

Additionally, as required by the investment policy the report provides:

• Total return performance measured against the selected benchmarks for longer-term funds (see page 5)
• Weighted average yield (see page 7)
• A listing of individual securities held at the end of the reporting period listed by maturity date (see pages 31-34, 43-44).
• The carrying basis, the current calculated accredited basis and the current market value (see top of pages 24 & 41).
  
  

As a reminder, the city's investment policy is guided by the investment acronym SLY, which stands for Safety, Liquidity and Yield, and in that priority order.  Safety of principal is the foremost objective of the investment program.  Second, the investment portfolio needs to remain sufficiently liquid to meet day-to-day operational requirements.  Lastly, attaining a market yield is the third goal of the investment policy.  The first two priorities of safety and liquidity limit the ability of the portfolio to realize comparable private sector earning in those robust years.  However, the policy also minimizes the changes of experiencing losses in the down years.

The city utilizes Securian Asset Management as its investment manager.  They handle a majority of the city's investment portfolio.  Part of their services include the preparation of monthly and quarterly investment reports.  During the 1st quarter the city began to internally manage the short-term portfolio including an additional $6 million of certificates of deposit previously held in the Securian Asset Management account.

COVID-19 Financial Impact (See attached)