Agenda Packets - 2006/10/09 - Laserfiche WebLink

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Mounds View City Council September 11, 2006 Regular Meeting Page 8 1 1. Finance Quarterly Report 2 3 Finance Director Beer stated that the general fund is on target. He stated that the timing of when 4 things occur regarding revenue, and that the majority of revenues come in during the second half 5 of the year. He noted that the number in the report from June 30th may not reflect a proportionate 6 amount of income. 7 8 Finance Director Beer noted the City is doing well as far as expenditures and may have a small 9 surplus. He noted that there is a deficit of $136,000 for the community center, and a $146,000 10 transfer will help offset the deficit. He noted the deficit was from the $45,000 in projected 11 revenue from the banquet center, of which only $2,345 has been collected. He noted that fund 12 reserves or increasing the transfer from other funds will have to offset the deficit. 13 14 Finance Director Beer noted that the $220,000 received from Ramsey County has been 15 outstanding from 1998 relating to the H2 project. He noted the City received $1.29 million from 16 Medtronic as part of the Bridges Golf Course Redevelopment, which will go toward the different 17 City projects. 18 19 Finance Director Beer explained that the City has collected $493,000 in investment income, 20 compared to $203,000 the previous year. He stated that currently, the investment fund is near 21 $25 million when it was previously $13.6 million for the same period in 2005. He noted the large 22 increase was from the sale of the golf course and significant permit income. 23 24 Finance Director Beer added that the Federal Open Market Committee (FOMC) has rate 25 increases and the discount rate is 5.25%. He noted the spread on the yield curve continues to be 26 very narrow. He stated the City uses the investment strategy called “laddering” or staggering 27 maturities over a number of years to off-set the impact of interest rate fluctuation. He stated the 28 City maintains liquid (money market) of $1-2 million for cash flow purposes. He added that the 29 rate will continue as long as the inflation rates remain tame, and some economists are predicting 30 that the FOMC will have to lower rates in 2007. 31 32 Finance Director Beer also noted that the finance operations for the second quarter are dominated 33 by the comprehensive annual financial report and subsequent audit. He noted they have begun 34 work on the long-range financial plan, preparing variable utility rates, and renewing the insurance 35 policies for the policy year beginning January 1, 2007. 36 37 Finance Director Beer noted that two significant events will occur in the third and fourth 38 quarters, the budget and the implementation of the new financial software. He added that the list 39 of delinquent utility bills and unpaid diseased tree charges will be presented to the Council for 40 certification. 41 42 Finance Director Beer stated Staff will also work with insurers for 2007 rates. He also noted that 43 the department has decreased annual software maintenance fees by $1,700 by implementing the 44 new software. 45