Laserfiche WebLink
Financial Management Policies <br /> <br />Financial management policies are essential elements of a strong financial future. The <br />policies serve as an on-going guide for decision-making. The policies describe actions to <br />be taken and the rationale for the actions. The creation of policies requires city officials <br />to consider implications of their actions. Policies promote continuity and stability. They <br />minimize the affects of changes in Council and management staff. <br /> <br />The following section describes the financial management policies of the City of Elk <br />River. These policies expand on existing City policies with new criteria developed in the <br />financial management planning process. All financial management policies should be <br />reviewed periodically to maintain relevance and effectiveness. <br /> <br />1. Revenues <br /> <br />]..]. <br /> <br />1.2. <br /> <br />The flow of revenues is subject to fluctuation from growth, legislative <br />change and other factors. The City seeks to promote financial stability <br />through diversification of revenues, good financial planning and <br />maintenance of adequate reserves. <br /> <br />All non-tax revenues should be reviewed at least every three years. The <br />purpose of the review is to determine if adjustments are needed to produce <br />additional revenues, more equitably allocate costs, and/or achieve other <br />objectives determined by the City Council. All revenue forecasts shall be <br />conservative. <br /> <br />1.3. <br /> <br />]..4. <br /> <br />Due to the lack of local control and the uncertainty of future <br />commitments, limited reliance should be placed on revenues from <br />intergovernmental sources. All new intergovernmental revenues should <br />be carefully studied to determine stability and stipulations (if any) <br />regarding use. <br /> <br />To the extent feasible, one-time revenues will be applied toward one-time <br />expenditures; one-time revenues will not be used to finance ongoing <br />programs. <br /> <br />1.5. <br /> <br />The City will maximize utilization of user charges in lieu of property taxes <br />for services that can be individually identified and where the costs are <br />directly related to the level of service. User fees will be reviewed each <br />year to ensure that related costs are recovered. <br /> <br />]..6. <br /> <br />The growth and development of Elk River directly influences revenues <br />available from many sources. Financial planning must consider <br />anticipated community growth. All planning must recognize the <br />relationship between finance and community development. Much of the <br /> <br /> <br />