Discussion:
General Fund - June 2020 (See attachment)
Revenue Variances (+/- 10% of 50% target)
- 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 second half tax payments.
- The majority of intergovernmental revenues are typically received in the fall.
- Charges for services are below budget due to the Community Center/Ice Arena Closures.
- Miscellaneous revenues are ahead as a result of investment income.
Expenditures Variances (+/- 10% of 50% target)
- In total, departmental expenditures are within the normal range and similar to last year's percentage through June.
- Recreational expenditures are down as a result of COVID related community center/ice arena/programming reductions.
- Finance expenditures are currently exceeding the targeted amount as a result of audit and assessing contract expenses occurring at the beginning of the year.
- Inspections-Building is currently exceeding the targeted amount as a result of the purchase of new building permit software (Tyler Technologies)
Community Center/Ice Arena/Sand Venture - June 2020 (See attachment)
SandVenture - will not open in 2020.
Community Center/Ice Arena - Revenues are behind in terms of budget targets and comparison to the previous year, primarily related to operations being closed since March 17th.
Quarterly Investment Portfolio Report - Q2, 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.
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. As a result of this change, the City is now having a third party (Wells Fargo Securities) run quarterly investment reports to encompass all City investments in addition to Securian’s quarterly report for their portion of City investments.
As required by the investment policy the report provides:
- Total return performance measured against the selected benchmarks for longer-term funds (Securian report page 3)
- Weighted average yield (Wells Fargo report page 3)
- The carrying basis, the current calculated accredited basis and the current market value (Wells Fargo report page 3).
- A listing of individual securities held at the end of the reporting period listed by maturity date (Wells Fargo report pages 14-16).
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.