Discussion:
General Fund - April 2023 (see attachment)
This early in the year, the timing of one of two large receipts or payments tend to skew the variances.
Revenue variances (33% target)
- The 1st half property tax settlement, which will also include special assessments collected, will be received from the County in June.
- Fines and Forfeit revenue has exceeded the budget amount. The City received a class action settlement payment of $17k from Monsanto for their role in impairments to the environment, including water bodies.
Expenditure variances (33% target)
- All departmental expenditures are within the normal range and similar to last year's percentage through April.
Community Center/Ice Arena/SandVenture - April 2023 (see attachment)
Ice Arena and Community Center revenues are currently tracking ahead of last year and budget targets.
Quarterly Investment Portfolio Report - Q1, 2023 (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 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.