06-22-2020 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 8, 2020 6:00 o’clock p.m. _____________________________________________________________________________________ Page 6 of 21 one way or another building seems to happen. He displayed a graph of the Plan Check/Site Exam fees. He noted the school fell off, which is why the budget was not increased, because you do not get a school every year. He displayed a graph of the overall budget and stated the City is a little lower in the first quarter. His guess is that the City will come in just slightly under revenue budget at this time, maybe 98%. It will depend if the economy picks up like everyone is expecting it to and if there is not a second wave. He noted it is worth thinking about it, and then in two weeks, when the 2021 budget starts being created, assumptions will have to be made about what the economy is going to do. He displayed a graph reflecting expenditures. On March 31, 2020, there were 21.5% of expenditures compared with 20.41% last year. He said the only department that shows anything large at all would be Mayor and Council, but that is the license memberships being paid at the beginning of the year and it is normal to be pretty high after the first quarter. He discussed the top vendor list, indicating the Bond Trust Services is at about $1 million and will be the number one vendor for at least the next 4-5 years and sometime in the future will drop off completely. He displayed the 19 top vendors including HealthPartners, City of Long Lake, Met Council, etc., and said they equal 83% of what the City spent so far through the first quarter. Printup noted the City has very little to no control over numbers 3 and 4, which are the Fire Department and Met Council. Numbers 5 and 6 are services going back to the citizens that the City does have control over. Walsh noted they are services the City is requesting for roads and infrastructure, etc. Johnson said those expenses are planned for. Walsh noted the City had just paid off some expenses and also just paid off a big bond a month ago. Johnson indicated it would not be HealthPartners the next time they looked at the financial report. Printup said there will be competitive bidding going on. Olson also displayed a graph with the City’s investments which total $12 million. He noted the tax settlement money will be put in the 4M Fund and, depending on cash flow needs, it might be left there, because if there is a road or sewer project, the City needs some liquidity. However, if possible, the City will invest in long-term investments, although they are not paying a lot right now. He noted Goldman Sachs came out with a 30-year Certificate of Deposit that pays 2%. Crosby asked if the City is keeping the maturities they are buying under 10 years. Olson answered that the investment policy is 7-8 years and they have not been buying anything in the 7-8 years, it is more 2-3. He noted most of those were bought in March and they could still get 1% at that time. However, he cannot get anywhere near that at this time. He also noted the City had received interest year-to-date of $63,980, which is very comparable to last year. However, a lot of the 2% investments have been called this year and are being reinvested at .2%. Walsh noted the City had called a 3% and so they made up for it. Olson said the City has to keep an eye on what their revenues do. They will get some idea in June, but they won’t really know on property taxes until July, and they might not know what building revenues are doing until the end of summer.