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DATE: October 25, 2010 <br />Background/Discussion: <br />Staff Recommendation: <br />�EN HILLS <br />MEMORANDUM <br />TO: Honorable Mayor and City Council <br />Patrick Klaers, City Administrator <br />FROM: Sue Iverson, Finance Director /Treasure <br />SUBJECT: 2010 3 Quarter Financial Reports <br />Attached are 3 Quarter Actuals for 2010. Overall expenditures are running below budget estimates. <br />Please remember that we receive 50% of our revenue from property taxes and will not received the 2 <br />half until December. Governmental accounting is not done on an accrual basis, therefore the numbers <br />reflect what was actually taken in as revenue or paid out as expenditures thru September 30, 2010. <br />Accruals, deferred revenue adjustments, etc. are only done at year -end. Basically expenditures from <br />operating activities are running below the budget estimates (except for the Administration Department <br />due to severance packages, recruitment, acting pay, and additional help but the General Fund overall is <br />running slightly below estimates), revenues are slightly below budget estimates. (Please note that the <br />overall percentages look lower because property taxes, liquor licenses, etc are collected at year -end.) <br />An Investment Portfolio has also been included with these financial reports. Per the Investment Policy, <br />our Benchmark Rate is the 4M plus Rate. At September 30, 2010 this rate was 0.090% and our <br />portfolio is averaging 2.506 All of our investments are in government secured or government backed <br />deposits. The section listed at the top of the portfolio are the "liquid" investments that we can access at <br />anytime. We are trying to stay diversified in this area and will be transferring between these accounts. <br />We have had some of our high interest notes call and I am working on cash flows with the PMP and other <br />CIP projects to determine how much I can invest and for what time periods. 17% of our funds are in the <br />League of Minnesota Cities 4M Fund and 4M Plus accounts. <br />Staff requests that Council accept the 3 Quarter Financial Reports. <br />