Agenda Packets - 2013/02/25 - Laserfiche WebLink

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Investments: The City will continue to experience lower investment income as a result of lower rates most likely through 2014 and into 2015. Investment income for 2012 is $304,691 compared with $442,662 for the same period in 2011. Our portfolio for December 31, 2012 was 29,501,264 compared with $29,775,339 for 2011. Treasury Securities 2012 2011 2 year .27 .27 5 year .88 .80 10 year 2.03 1.92 Cert. of Deposit 1 year .25 .25 The Federal Open Market Committee (FOMC) has maintained the current discount rate at 0% to .25%. They have indicated that they will keep rates low into 2015 or until unemployment is 6.5%. Credit continues to be tight and uncertainty is a concern for small businesses. The Federal Reserve is buying mortgages and US Treasuries as part of quantitative easing. (QE3)(QE4) State unemployment as of December 31" was 5.5% state-wide compared to national unemployment of 7.9%. Economists see the national number not changing much in 2013 and into 2014. The State number has been improving and speculation is due to a higher proportion of educated people in the work force and not as dramatic rise and fall in housing prices compared to other parts of the country. The job market is a lagging indicator of an economic recovery so will be one of the last things to show improvement. Finance Department Operations: Perennial projects include year-end financials and preparation for our annual audit; this takes place during the 15` and 2nd quarter. There are also a number of state reporting requirements that are completed in the 15` and 2nd quarters. Once the audit is complete staff moves onto our five year financial plan for the remainder of the 2nd quarter. Staff also begins working on the new budget and this will continue until the end of the year. The 3`d quarter is dominated with budget work and special assessment roll preparation and franchise fee ordinances. The 4`h quarter includes certifying assessments, preparing our insurance application, and continuing budget work up to final adoption and certification to the county. Future Development: Staff will be exploring an upgrade to our general ledger package that will position the City for future on-line transactions and improved reporting efficiencies. The cost to upgrade is the training which has a worst case cost of $50,000. This would include up to 220 hours of training and Incode staff travel expenses. Use of credit cards for payment is desired by some of our Citizens and Customers and could be a discussion topic for the Council. The credit card companies now must allow you to off -set the fees with a service charge to the card user this is a recent change as a result of a law suit. This would not apply to debit cards. Respectfully Submitted, c� ark Beer