5I, 1st Quarter 2012 Financial Reports

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'It EN HILLS MEMORANDUM DATE: April 30, 2012 TO: Honorable Mayor and City Council Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services Kyle Howard, Finance Analyst SUBJECT: 2012 1St Quarter Actuals Background/Discussion Attached are the 1St Quarter Actuals for 2012. Overall expenditures are running near budget estimates. Please remember that we receive 50% of our revenue from property taxes and will not receive the 2nd half until December. Governmental accounting is not done on an accrual basis, therefore the number reflect what was actually taken in as revenue or paid out as expenditures thru March 31, 2012. Accruals, deferred revenue adjustments, etc. are only done at year-end. Basically General Fund expenditures from operating activities are running at or slightly below the budget estimates, revenues are running close to budget estimates. (Please note that the overall percentages look lower because property taxes, liquor licenses, etc are collected at year-end.) An Investment Portfolio has also been included with these financial reports. Per the Investment Policy, our Benchmark Rate is the 4M plus Rate. At March 31, 2012 —this rate was 0.05% and our portfolio is averaging 1.997%. All of our investments are in government secured or government backed deposits. The section listed at the top of the portfolio are the "liquid" investments that we can access at anytime. As we are trying to stay diversified in this area and we will be transferring between these accounts. We have had some of our high interest notes call and we are working on cash flows with the PMP and other CIP projects, along with the new utility billing cycles to determine how much we can invest and for what time periods. 2.4% of our total funds are in the League of Minnesota Cities 4M Fund and 4M Plus accounts. Staff Recommendation Staff requests that Council accept the 1St Quarter 2012 Financial Reports. III �I