General Fund - March 2024 (see attachment)

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

Revenue variances (25% target)

• Taxes will remain below budget targets until the 1st half settlement is received in June.
• Fines and Forfeits are currently showing as exceeding budget targets.  The Court fine revenue has been dedicated towards paying prosecution costs, which previously the City would net court fine revenue with prosecution costs for accounting purposes.  Based on auditor recommendation the City will be separating court fine revenue and prosecution expenses.  There is no net impact on overall cost, but will be more transparent for financial reporting purposes.  Prosecution cost expenses are reported in the Police department budget.
• Investment income for 2024 has not yet been allocated to the miscellaneous line item.  This adjustment will occur once the 2023 audit has been completed to ensure accurate starting balances for each fund. 

Expenditure variances (25% target)

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

Quarterly Investment Portfolio Report - Q1, 2024 (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 16-19)
• 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.