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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 22, 2013 7:00 o’clock p.m. _____________________________________________________________________________________ Page 16 of 18 CITY ADMINISTRATOR’S REPORT Loftus stated the City was notified by the Minnehaha Creek Watershed District that they are going to try to do the milfoil weevil study in Veterans Cove this year. It is a three-year study. The City also received notice from Hennepin County regarding their 5-year capital plan, and in 2015 the County will be replacing Boy Scout Bridge on Tonkawa, in 2016 they will be replacing the bridge on Brown Road, and in 2017 and beyond, they will be looking at reconstruction of Highway 112 or Old Highway 12. Loftus reported the security cameras have been installed around the City campus. The County Assessor held an open book meeting on April 17 and there was one person in attendance. The assessors spent approximately 20 to 30 minutes with that person. Loftus noted Mr. Grube with the Department of Transportation has requested some work session time in May regarding the Highway 112 project. The project advisory committee is coming to a conclusion and he would like some feedback on their findings. Loftus recommended the City Council’s work session scheduled for May 28 start at 5:00 so they can accommodate Mr. Grube. 9. YEAR-TO-DATE GENERAL FUND BUDGET INFORMATION Ron Olson, finance director stated the General Fund summaries for the first quarter are available. The first quarter is typically the slowest period for both revenues and expenditures. Revenues are at 15.04 percent of budget with expenditures at 22.6 percent of budget. The low revenue percentage is normal for the first quarter. The first property tax receipts, representing 53.7 percent of the budget, will not be received until June. Various state grants will also not be received until later in the year. For comparison purposes, in 2012, the first quarter revenues were only at 6.02 percent of budget. This year’s higher collection rate is the result of the Mound service contract. Under the terms of the contract, Mound pays for the first half of the year in January. As a result, revenues related to the police service contract are already at 43.9 percent for the year. The last three years the City has ended up at the end of the year in good shape. At 22.6 percent, the overall expenditure amounts are on target for the year. Both assessing and fire are at 49 percent for the year, which is the result of the timing of payments. Both departments will finish the year around 100 percent. Olson noted the golf course was open at this time last year, but due to the weather, that is not possible this year and revenues are down. The other General Fund department budgets are in good shape for this time of the year. Olson stated as it relates to investments, the City does not receive the statements until after the first week of the month and that he has not had time to formally audit the statements. Olson stated to get some idea of the economic climate, in order for a person to receive .74 percent interest on U.S. Treasury bonds, they would have to go out five years, and to receive over 1 percent interest, and they would have to go out seven years. The City does not really invest in treasuries but that is the base line. The City attempts to do better with their investments than what treasuries will pay, but given the economic climate, a person has to go out a long way to make anything on interest. As it relates to current CD rates, year one is at .2 percent, year two is at .6 percent, year three is at .4 percent, and years four and five average .85 percent. Item #03 - CC Agenda - 05/13/2013 Approval of Council Minutes 04/22/2013 [Page 16 of 18]