04-22-2013 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ' ORONO CITY COUNCIL MEETING - Monday,Apri122,2013 7:00 o'clock p.m. (9. YEAR-TO-DATE GENERAL FUND BUDGET INFORMATION, Continued) Olson displayed a partial list of the City's current investments. The certificates of deposit are doing a little better than the treasury bonds. On an 18-month CD,which was purchased in November of 2011,the City was getting .7 percent,which is difficult to get currently. On a 4-year CD that was purchased a few years ago,the City was making 3.2 percent, which is an example of how interest rates have fallen. If you average it out,the City is achieving a little over 1 percent on the investments. Olson noted the City is allowed to purchase Minnesota State College bonds,which is paying 1.35 percent for five year and is a good yield given the current environment. McMillan noted the revenues for this quarter as compared to the first quarter of 2012 are quite a bit different and that she has some questions regarding that data. McMillan noted licenses and permits are down as well as fines. McMillan asked if there is a reason for the decline. Olson stated first quarter fines for this year was$5,600,which is one of the lowest fine months in the past three years. Olson indicated the lower numbers could be because the numbers are unaudited at this point. Last year the first three months were all over$10,000,which is a little higher than the average. McMillan noted the difference is approximately$50,000 on fines. Olson stated to his recollection the City did receive a special settlement but that he would have to provide that specific information. McMillan noted the interest income is 10,000 this year versus 63,000 last year. Olson stated the sheet containing the first quarter numbers for the budget are not completely accurate. The actual investment revenues through the first quarter in 2012 were approximately$10,050,which is really close to this year's numbers. Olson stated he realized just prior to tonight's meeting that the wrong information got inserted and that he will provide the updated sheet. McMillan stated if he is interested in having an investment subcommittee formed to assist him with the City's investments,the Council could look at that. McMillan noted the City did have an investment committee at one point in the past. The City Council took no formal action on this item. CITY ATTORNEY'S REPORT Mattick noted there was a hearing on the summary judgment motion regarding the wind generator and that he hopes to get the judge's ruling in the next 45 days. Page 17 of 18