4G, Motion to Accept 3rd Qtr Financial Reports

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.. ...mmLs MEMORANDUM DATE: October 10, 2008 TO: Honorable Mayor and City Council Ronald Moorse, City Administrator FROM: Sue Iverson, Finance Director ~ SUBJECT: 2008 3rd Quarter Actuals Background/Discussion: Attached are the 3rd Quarter Actuals for 2008. Overall expenditures are running below budget estimates. Please remember that we receive 50% of our revenue from property taxes a~d will not received the 2nd half until December. Governmental accounting is not done on an accrual basis, therefore the numbers reflect what was actually taken in as revenue or paid out as expenditures thru September 30, 2008. Accruals, deferred revenue adjustments, etc. are only done at year-end. Basically expenditures from operating activities are running below the budget estimates, revenues are running over 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 September 30, 2008 - this rate was 2.350% and our portfolio is averaging 3.752%. As of October 8, 2008 the 4M Plus was 1.910%. 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. We are trying to stay diversified in this area and will be transferring between these accounts. Our investment brokers are analyzing our investments of these funds and providing feedback on investment strategies. The majority of the funds are in the League of Minnesota Cities 4M Fund and 4M Plus accounts. Staff Recommendation: Staff requests that Council accept the 3rd Quarter Financial Reports.