4G, Second Quarter 2011 Financial Reports

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� EN H�LL5 MEMORANDUM DATE: July 25, 2011 TO: Hanorable Mayor ar�d City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services� SUBJECT: 2011 2na Quarter Act�ais BacE�ground/Discussion: Attached are the 2"d Quarter Actuals for 2011. �verall expenditures are running slightly be�ow budget estimates. Please remember that we receive 50% of our revenue from property taxes and did not received the 15L half until July. Governmental accounting is not done on an accrual basis, therefare the numbers reflect what was actually talcen in as revenue or paid aut as expenditures tf�ru June 3U, 2011. Accruals, deferred revenue adjustments, etc. are only done at year-end. Basically expenditures �rom operating activities are running close to the budget estimates, revenues are slighily below budget estimates. (Flease note ihat ihe overall percentages look lower because property tax.es, liquor iicenses, etc are collected at year-end.) An Investtnent Portfolia has also been included with these financial reports. Per the Investment Policy, aur Benchrriark Rate is the 4M plus Rate. At 7une 30, 2011 — this rate was 0.05% and our portfalio is averaging 2.253%. AIl of our inveshnents are i� government secuxed or government backed deposits. Tha section listed at the top �f the portfolio are the "liquid" investments that we can access at anytime. {The large amount in the 4M is a reflection oi the Tax Advance we receiv�d from Ramsey County by wire an June 34t�.) We are trying to stay diversified in this area and will be transferring between these accaunts. We have had some of our higln interest notes call and I am working on cash flows with �e PMP and at,h�r CIP projects to determine how much I can invest and for what time periods. 17% of our tatal funds are in the League of Minnesota Cities 4M �und and �M Plus accounts. Staff Recommendatia�t: Staff requests tk�at Council accept the 2°d Quarter Financial Repolrts.