General Fund - June 2024 (see attachment)

The 2024 Budget column has been adjusted for budget amendments approved by City Council on July 2, 2024.

Revenue variances (50% target)

• Total revenues were at 54 percent of budgeted revenues, halfway through the year.
• The 1st half property tax settlement (including special assessments) was received in June.
• Licenses and permits are tracking ahead of budget targets as a result of building permit revenues through June.
• Intergovernmental is currently below budget targets, this is typical as the majority of grant revenue is received in the fall.
• Miscellaneous includes interest earnings on investments, which are tracking ahead of budget targets.

Expenditure variances (50% target)

• In total departmental expenditures are within the normal range and similar to last year's percentage through May.
• Finance department expenditures are currently exceeding budget targets as a result of payments for the County assessing contract and the annual audit.  These payments occur in the first half of the year.  It is anticipated the department will remain within the total annual budget allocation.
• Planning and Development expenditures are currently exceeding budget targets as a result of the professional services related to the National Historic registry.  The city received a grant of $77,500 from the Minnesota Historical Society towards the registry which covers a significant portion of the overall cost.
• The Building Inspections department is currently ahead of budget targets, as a result of annual software costs paid in the 1st half.  It is anticipated the department will be within the budget for the full year.

Quarterly Investment Portfolio Report - Q2, 2024 (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 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 17-20)
• 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.