Laserfiche WebLink
The four utility funds are operating under budget. Water fund revenue is down with a wet <br />summer and thus the required conservation water rates that were adopted for 2010 have <br />not had a significant effect on water use. The rate study in the five year financial plan <br />indicates the need for a dime increase in water rates for 2012 or about $8 annually. The <br />Sanitary Sewer proposed increase for 2011 is 4% or about $10 annually. The Storm <br />Water fund and Street Light fund indicate no increase for 2012. <br /> <br />Investments: <br />The City will continue to experience lower investment income as a result of lower rates <br />most likely through 2013 and into 2014. Investment income for 2011 is $354,366 <br />compared with $411,545 for the same period in 2010. Our portfolio for September 30, <br />2011 was 28,964,199 compared with $28,762,017 for 2010. I have attached the <br />September 30th investment statements and pooled cash report for you review. <br /> <br />Treasury Securities 2011 2010 <br /> 2 year .27 .63 <br /> 5 year 1.06 1.75 <br />10 year 2.17 2.63 <br />Cert. of Deposit <br /> 1 year .25 .40 <br /> <br />The Federal Open Market Committee (FOMC) has maintained the current discount rate at <br />0% to .25%. They have indicated that they will keep rates low into 2013. Credit continues <br />to be tight and is still a concern for small businesses. There is some concern that the <br />economy might double-dip but that has abated somewhat recently. The Federal Reserve <br />is still considering if additional quantitative easing is needed. <br /> <br />State unemployment as of September 30th was 7.2% state-wide compared to national <br />unemployment of 9.1%. Ramsey County unemployment stands at 7.4%. Economists see <br />the national number not changing much in 2011 and into 2012. The State number has <br />been flat. The job market is a lagging indicator of an economic recovery so will be one of <br />the last things to show improvement. <br /> <br />Finance Department Operations – 4th quarter: <br /> <br />Finance staff will be busy during the fourth quarter finalizing the 2012 budget which will <br />culminate with a truth-in-taxation hearing and adoption of the 2012 budget and tax levy in <br />December. 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 <br />the County at the end of November. Staff is currently working on our insurance policy <br />renewal and we will begin preparations for the annual financial audit. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Mark Beer, Finance Director