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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 27, 2015 7:00 o’clock p.m. _____________________________________________________________________________________ Page 19 of 21 10. FIRST QUARTER FINANCIAL REPORT (continued) until June. Olson stated once that payment is received the City’s revenues will look pretty good. Olson stated the first quarter revenues are typically low, but by June the City will be at approximately 60 percent of revenues. Third quarter revenues will also be relatively flat and then increase in the fourth quarter when it is anticipated the City will be at approximately 100 percent of budgeted revenues. Olson noted the City’s overall expenditures are also on target for the year. Most of the adjustments that have been made are to include the portion of the first payroll of April, which is for compensation earned in March. Other adjustments are for significant expenditures that the City was not billed for at the end of March. Olson reported the majority of the departments are all pretty much where they should be, with the Mayor and Council Department being slightly over budget due to the fact that payments for memberships are due in the first quarter. Olson noted the Central Services Department is close to 30 percent for expenditures, which is a result of the payment of licensing fees that are paid in the first quarter. Olson noted the City no longer owns the operating system and every year the City has to pay for its server license and licensing Microsoft Office. Olson indicated he is not at all concerned about any of the departments being over budget at this point. Olson noted the City Council will be approving the transfers to other funds later in the year. Olson indicated he did adjust it somewhat simply to make the first quarter report more accurate. Olson stated he anticipates the City’s expenditures will be at 100 percent or slightly below by the end of the year. Olson stated as it relates to the City’s investments, the total CD’s are at $9.5 million, government agency bonds are at $5.5 million, and the City has $2.2 in money market accounts. Olson noted the City still has bond money that is being used and spent down as part of the police garage project, and as the water plant improvements move forward, that will also reduce the City’s money market fund. Olson stated interest earned through 3/31/2015 is $26,684.35, which compares to $33,174.61 during the first quarter of 2014. The interest earnings do not include any adjustments for the current market value of the portfolio. Olson stated as of the end of the quarter, this adjustment would be an increase of $7,307.44. This compares favorable to the $47,383 reduction in value at the end of 2014. Olson stated the bonds tend to offer better interest than the CDs and that the City currently has two government bonds. Olson stated both of those bonds mature in 2021 but it is likely both of those bonds will be called before 2021. Olson stated the City just had a bond that was purchased six months ago called last month. Olson noted the City attempts to pay off their bonds early to save money. The City Council took no formal action on this item. CITY ADMINISTRATOR’S REPORT, CONTINUED Loftus stated the Hennepin County Assessor has hosted its open book meeting on April 15. Three residents were in attendance this year in comparison to four last year. Loftus reported the Assessor’s Office has received approximately 100 calls from residents this year, which is slightly down from previous years. Item #02 - CC Agenda - 05/11/2015 Approval of Council Minutes 04/27/15 [Page 19 of 21]