General Fund - October 2022 (see attachment)

Revenue variances (+/-10% of 83.3% target)

• Taxes will remain below the budget target amount until the 2nd half property taxes are received in December.
• Special Assessments are currently negative as a result of recent assessments of refuse bills.  These amounts will be recovered through the assessment process.
• Licenses and permits are exceeding the budget amount and ahead of last year, primarily as a result of building permit revenue.
• Intergovernmental is currently ahead of budget targets as a result of an increase in Municipal State Aid for street maintenance (allocation of gasoline tax).
• Miscellaneous includes investment earnings, with rising rates in 2022 the City currently has a large unrealized loss which is not reflected.  This adjustment occurs at year-end.

Expenditure variances (+/- 10% of 83.3% target)

• Total General Fund expenditures are within the normal range and similar to last year's percentage through September.
• The Planning and Development department is currently exceeding the target percentage as a result of the Entertainment EAW.  These expenditures will be reimbursed by the developer.
• The Building Inspection department is currently exceeding the target percentage as a result of credit card fees related to building permit revenue and annual software costs.
• Engineering expenditures are currently under budget targets as a result of vacancies and allocated wages to projects.
• Unallocated expenditures are currently under budget targets as a result of budgeted contingency funds.

Community Center/Ice Arena/SandVenture - October 2022 (see attachment)

SandVenture

• SandVenture completed the year with $240k in total revenues, exceeding the budget of $189k.

Community Center 

• Revenues are ahead of the previous year and are currently at 73% percent of budgeted annual revenues.  Expenditures are tracking ahead of last year as a result of a conversion of a part-time position to full time, implementation of the part-time wage study, operating supplies related to room rentals and increased utilities (electric/gas). 

Ice Arena 

• Revenues are similar to last year and are currently at 63 percent of budgeted annual revenues.  Expenditures have seen an uptick from the previous year, predominantly a result of increased utility costs (electric/gas).

Quarterly Investment Portfolio Report - Q3, 2022 (See attachment)

Attached is the 3rd 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 all city investments.

As required by the investment policy the report provides:

• Total return performance measured against the the three year treasury (Page 6)
• Weighted average yield (Page 3/Page 6)
• A listing of individual securities held at the end of the reporting period listed by maturity date (Pages 15-17)
• The carrying basis, the current calculated accredited basis and the current market value (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.