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<br /> <br /> <br />The City budgets investment income as part of the budget process so it is helpful to understand the <br />coupons (interest rate) for the cash and investments. The coupons as of March 31, 2020, are as <br />follows: <br /> As of December 31, 2019 <br />Coupon Amount Percentage <br />To 1.00% $0 0% <br />1.00% to 1.49% $1,850,009 12.83% <br />1.50% to 1.99% 4,416,800 30.63% <br />2.00% to 2.49% 4,538,588 31.47% <br />2.50% to 2.99% 910,000 6.31% <br />3.00% to 3.49% 2,705,250 18,76% <br /> $14,420,647 100.00% <br />As new investments are purchased in the near future, the investment coupons will continue to <br />decrease. The Federal Reserve set the Fed Funds Rate to 0 to .25% in February. <br /> <br />State Intergovernmental Revenues <br />The State announced a projected $2.4 billion deficit this week. At this time, it is unknown if this <br />will change the intergovernmental payments received from the State. Below are the significant <br />State intergovernmental revenues that are in Little Canada 2020 budget, and the revenues collected <br />to date. <br />Fund Description 2020 <br />Budget <br />2020 <br />YTD <br />Months Typically <br />Received <br />General Fund MSA Maintenance $120,500 $67,120 1st Half-February <br />2nd Half-July <br />General Fund Fire Relief Aid 55,000 - October <br />General Fund LGA * 86,901 - 1st Half-July <br />2nd Half-December <br />General Capital <br />Improvement Fund <br />LGA * 347,478 - 1st Half-July <br />2nd Half-December <br />*LGA is in the 2020 budget at 20% General Fund and 80% General Capital Improvement Fund <br /> <br />Other Items <br />The worker’s compensation coverage premium was paid in April to the League of Minnesota <br />Cities Insurance Trust. The new coverage premium included a 1.04% experience modification <br />compared to .78% experience modification last year. An experience modification is set each year <br />based on the claim history. This large increase in the modification increased our premium. <br /> <br />The new premium will be for 9 months in order to sync the worker’s compensation insurance <br />coverage premium period to be the property insurance premium period. Both coverages will now <br />be a calendar year. The 9-month policy period for the worker’s compensation coverage will also <br />allow the actual amount paid to be within the budget amount. <br /> <br />Insurance Budget Actual <br />Worker’s Compensation $27,240 $25,547 <br />