Laserfiche WebLink
for all utility charges. The need for rate increases will start to abate over the next few years as we <br />catch up on deferred maintenance. <br /> <br />Investments: <br />The City will continue to experience lower investment income as a result of lower rates most likely <br />through 2014 and into 2015. Bond rates have declined by 60 – 80 basis points after spiking at the <br />end of 2013. Investment income for 2014 is $178,701 compared with $208,118 for the same <br />period in 2013. Our portfolio for September 30, 2014 was $25,846,874 compared with <br />$25,852,682 for 2013. <br /> <br />Treasury Securities 2014 2013 <br /> 2 year .50 .37 <br /> 5 year 1.61 1.41 <br />10 year 2.32 2.64 <br />Brokered CD’s <br /> 1 year .65 .35 <br /> <br />The Federal Open Market Committee (FOMC) has maintained the current discount rate at 0% to <br />.25%. The FOMC has been tapering their bond buying activities (quantitative easing) and will <br />discontinue this activity after October. The FOMC does not anticipate increasing rates until <br />sometime in 2015 depending on economic data. Credit continues to be tight and is still a concern <br />for small businesses. Fed inflation data indicates 1.5% to 2.0% for the year. Japan is in recession <br />and Europe is teetering on the brink. Chinese growth numbers have slowed but none of the above <br />has affected the United States yet. <br /> <br />State unemployment as of September 30th was 4.1% state-wide compared to national <br />unemployment of 5.9%. Ramsey County unemployment stands at 4.1%. Economists see the <br />national number declining slightly in 2015. The State number has been about 2% below the <br />national rate. The job market continues to lag as uncertainty at the federal level continues to <br />hinder business investment and growth. Interest rates have continued to trend lower from the high <br />on January 1st. We should see a nice mark-to-market adjustment at the end of the year. <br /> <br />Finance Department Operations – 4th quarter: <br /> <br />Finance staff will be busy during the fourth quarter finalizing the 2015 budget which will culminate <br />with a truth-in-taxation hearing on December 1, and likely adoption of the 2015 budget and tax levy <br />on December 8th. Delinquent utility bills, administrative offense fines, diseased tree charges and <br />unpaid property charges were presented to the Council for certification and will be sent to the <br />County at the end of November. Staff is currently working on our insurance policy renewal and we <br />will begin preparations for the annual financial audit. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br />Mark Beer, Finance Director