General Fund - December 2020 (See attachment)

These are preliminary results for the year ended 12/31/2020.  The city will be paying bills, collecting receipts and preparing journal entries related to 2020 over the next few weeks.

Revenue Variances (100% target)

• Special assessments is a negative amount due to payments to Republic Services for delinquent garbage assessments.  The account will be negative until special assessments are collected.
• Licenses and permit are exceeding the budget amount as a result of building permit revenues.
• Charges for services are below due to the Community Center/Ice Arena/SandVenture closures.
• Miscellaneous revenues are ahead as a result of investment income.

Expenditure Variances (100% target)

• In total, departmental expenditures are within the normal range and similar to last year's percentage through December.
• The City Clerk's department exceeded the targeted budget amount, as a result of elections.
• The Fleet department exceeded the targeted budget amount as a result of allocated public works personnel expenses.  In total, public works personnel across all departments are within their total budgeted amount.
• Recreational expenditures are down as a result of COVID-19 related programming reductions.
• All other division's are expected to fall within the amended budget.  The city council adopted amended budgets at the November 17th council meeting.

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

SandVenture - Did not open in 2020.

Community Center - Revenues are significantly behind in terms of budget targets and comparisons to the previous year, as a result of operations being closed and impacted by COVID-19.

Ice Arena - Revenues are behind in terms of budget targets and last year's revenues.

Quarterly Investment Portfolio Report - Q4, 2020 (See attachment)

Attached is the 4th quarter investment portfolio report including a cover page that provides a comparison of investment results over the past four years.

The city utilizes Securian Assets Management as an investment manager for a portion of the city's investment portfolio.  Part of their services include the preparation of quarterly investment reports.  City staff is responsible for managing the portion of the portfolio that has a shorter term investment focus.  In prior years this was also managed by Securian.  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 or principal is the foremost objective of the investment program.  Second, the investment portfolio needs to remain sufficiently liquid to meet day-to-day operations 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 earnings in robust years.  However, the policy also minimized the changes of experiencing losses in the down years.