5.2. SR 06-06-2011 - Laserfiche WebLink

Home Browse Search

' Long-term financial planning As part of a yearly budget process the City Council reviews the updated Financial Management Plan. The Financial Management Plan provides along-range forecast that brings together future expenditures, revenues, and development of the City. The Council has been diligent in maintaining a level tax rate. This plan provides the information needed to develop in a manner that will sustain or expand City ' services while keeping the property taxes stable. Department heads take part in this process to estimate staff additions, service levels, and capital needs for the next ten years. In addition, the City Council continually reviews cash flow analysis and long-term planning as part of the comprehensive Capital Improvement Plan (CIP) process. The CIP is a 5-year planning tool that forecasts the City's capital needs based on the City's long-range plans, goals, and policies. ' Relevant Financial Policies The City Council has adopted several financial management policies. The financial management policies ' include: revenues, property taxes, investments, purchasing, financial reporting, reserves, fund balance, capital investment, and debt policies. The City's policy on fund balance states that the City will maintain an unassigned fund balance of not less than 40% of budgeted general fund operating expenditures. The ' percentage of unassigned fund balance at December 31, 2010 is 41.5%. Since property tax payments are received by the City in two installments in July and December, the City needs adequate cash reserves for cash flow in order to avoid short-term borrowing to finance operations. Changes in state law over the past several years have resulted in funding changes for both schools and local governments. Reductions in both Market Value Homestead Credits (MVHC) and Local ' Government Aids (LGA) programs have resulted in revenue losses to the City. Due to the uncertainty in receiving the aid from the state, the LGA and MVHC revenues are not included in the 2011 budget. The City does not expect in the short-term to see LGA and MVHC amounts restored to previously years ' levels. In addition, the State Legislature did reinstate levy limits starting in 2009 for three consecutive years and will have an impact on future budgeting parameters through the 2011 budget. ' Major Initiatives In 2010, the City completed the land use plan for 171 S` Avenue Focus Area Study and the development ' opportunities surrounding the Northstar Commuter Rail Station and the adjacent City-owned Gateway Business Park. The City also initiated an AUAR and preliminary engineering for phase I of the 171 S` Avenue Focus Area. In addition, Elk River's Northstar station continues to have one of the largest ' ridership numbers along the rail line that runs from Minneapolis to Big Lake. ' Awards and Acknowledgements The Government Finance Officers Association of the United Stated and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Elk River for its CAFR ' for the fiscal year ended December 31, 2009. This was the 21st consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement the government must publish an easily readable and efficiently organized comprehensive annual financial report. This ' report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR ' continues to meet the Certificate of Achievement program requirements and it will be submitted to the GFOA to determine its eligibility for another certificate. u