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�i <br /> ilk _ REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 6.3 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Work Session March 11, 2013 Tim Simon, Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Financial Management Policies Update Cal Portner, City Administrator <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Review update and consolidation of city financial management policies. <br /> BACKGROUND/DISCUSSION <br /> One of the Finance Department goals for 2013 was to update and consolidate our financial management <br /> policies. Previously,we had many stand-alone policies that were amended and adopted at various times. <br /> By combining them into a single-source document,it allows for easier reference, review, and updating. <br /> We will review these in two meetings; this review will cover updates to all policies except public purpose <br /> expenditure, travel reimbursement, and fund balance policies which will be reviewed at the worksession <br /> in April. <br /> During our recent bond rating call with Standard and Poor's, they increased the city's financial <br /> management assessment from "good" to "strong,"which is the top level. This increase was due in part <br /> to our strong policies and the continual review and update of these policies. <br /> The update and modifications were done after reviewing standards and best practices recommended by <br /> the Government Finance Officers Association (GFOA), and a review of policies by other cities. Items <br /> underlined are modifications or additions from our old policies. <br /> Relative Importance of Financial Policy Types (GFOA,financial policies pg 29) <br /> Essential policies Highly advisable policies <br /> Fund balance and reserves Accounting and financial reporting <br /> Operating budget Revenues <br /> Capital budgeting and planning Internal Controls <br /> Debt management Expenditures <br /> Long-range financial planning Purchasing <br /> Investment Risk Management <br /> Economic Development <br /> Financial Management Policies (change summary) <br /> Purpose Section <br /> P a W I R E D 0 y <br /> N:APublic Bodies\City Council\Council RCA\Agenda Packet\03-11-2013\Financialpoficy-update.docs INATUREI <br />