General Fund - March 2021 (See attachment)

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

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

• Taxes and special assessments will remain below the budget targets until the first half tax settlement is received.
• Licenses and permits are exceeding the budget amount as a result of building permit revenue received in through the 1st quarter.

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

• All departmental expenditures are within the normal range and similar to last year's percentage through March.

Community Center/Ice Arena/Sand Venture - March 2021 (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. 

Ice Arena

• Revenues were up through this time last year and ahead in terms of budget targets.

Community Center

• Operations continue to be impacted by Covid-19.  Revenues remain lower than the previous year and below budget targets.

Quarterly Investment Portfolio Report - Q1, 2021 (See attachment)

Attached is the 1st quarter investment portfolio report including a cover page that provides a comparison of investment results over the past five years.  The report provided by Wells Fargo Securities encompasses the entire city investments, while the Securian investment report covers the investments managed by Securian.

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)
• A listing of individual securities held at the end of the reporting period listed by maturity date (Wells Fargo report pages 14-16).
• The carrying basis, the current calculated accredited basis and the current market value (Wells Fargo page 3).
  
  

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.