General Fund - June 2021 (See attachment)

Revenue Variances (+/- 10% of 50% target) 

• 1st half taxes and special assessment were received on June 21.
• Intergovernmental is below budget targets, a significant portion will be received in fall. 
• Additionally, the City has requested federal funding from the American Rescue Plan and anticipates receiving funding in July.
• Licenses and permits are exceeding the budget amount as a result of building permit revenue received through June.

Expenditure Variances (+/- 10% of 50% target)

• Total expenditures remain below budget target.
• Finance department expenditures are currently exceeding the budget target as a result of the timing of the annual assessment contract which was paid in May.
• Planning and Development expenditures are currently exceed the adopted budget as a result of parklets.  These parklets will be paid from American Rescue Plan funds.
• Unallocated is below the budget target as a result of unspent contingency funds.

Community Center/Ice Arena/Sand Venture - June 2021 (See attachment)

SandVenture

• SandVenture opened in June and has received 59 percent of budgeted annual revenue.

Ice Arena

• Revenues are up in comparison to this time last year and close in terms of budget targets.

Community Center

• Revenues are ahead of the previous year, but below budget targets. 

Quarterly Investment Portfolio Report - Q2, 2021 (See attachment)

Attached is the 2nd 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 14-17).
• The carrying bases, the current calculated accredited basis and the current market value (Wells Fargo report 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 earnings in those robust years.  However, the policy also minimizes the chances of experiencing losses in the down years.