General Fund - October 2021 (See attachment)

A notation is located on the right of the report that references a proposed budget amendment #.  The detail of these proposed budget amendments have been provided, however the budget amounts shown on the report do not currently reflect these budget adjustments.  The budget amendments include a reference to the City Council date of original approval.  Staff will ask for council acceptance of these budget amendments and any additional amendments needed in December.  

Revenue Variances (+/- 10% of 83% target)

• Taxes will remain below budget targets until the 2nd half property tax settlement is received.
• Special assessments show a negative amount as a result of delinquent storm, sewer and refuse amounts applied in September.
• Intergovernmental is exceeding budget targets as a result of federal funding from the American Rescue Plan Act.
• Licenses and permits are exceeding the budget amount as a result of building permit revenue received through October.

Expenditure Variances (+/- 10% of 83% target)

• Total expenditures remain in line with budget targets.
• Finance department expenditures are currently exceeding the budget target as a result of the timing of the annual assessment and audit contracts.  The audit cost included the additional cost of a single audit, required for Federal CARES Act funds.
• Planning and Development expenditures are currently exceeding the budget target as a result of the contract with Stantec for master planning/AUAR and the purchase of parklets (to be paid from American Rescue Plan Act funds).
• Unallocated is below the budget target as a result of unspent contingency funds.

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

Sand Venture

• Sand Venture revenues for the year of $260k exceeded budget expectations of $185k.

Ice Arena

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

Community Center

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

Quarterly Investment Report (Q3, 2021) (See attachment)

Attached is the 3rd quarter investment 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 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-today 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 or experiencing losses in the down years.