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<br /> <br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 4.9 <br />Agenda Section Meeting Date Prepared by <br /> <br />ConsentApril 18, 2016Tim Simon, Finance Director <br />Item Description Reviewed by <br /> <br />Financial Management Policies Update Cal Portner, City Administrator <br />Reviewed by <br /> <br />Action Requested <br /> <br />Approve, by motion, the updated financial management policies. <br /> <br />Background/Discussion <br /> <br />Annually, staff reviews the financial management policies and provides recommendations to Council for <br />updates. <br /> <br />The 2016 updates and modifications were done by reviewing standards and best practices recommended <br />by the Government Finance Officers Association (GFOA), and a review of policies by other cities. Items <br />underlined are modifications or additions from our last update. <br /> <br />Relative Importance of Financial Policy Types (GFOA, financial policies pg 29) <br />Essential policiesHighly advisable policies <br />Fund balance and reservesAccounting and financial reporting <br />Operating budgetRevenues <br />Capital budgeting and planningInternal Controls <br />Debt managementExpenditures <br />Long-range financial planningPurchasing <br />InvestmentRisk Management <br />Economic Development <br /> <br /> <br />Financial Management Policies (change summary) <br /> <br />Utilities <br /> <br /> <br />Updated Elk River Municipal Utilities annual contribution to the city from 3 percent to 4 percent <br />of gross electric sales to account for electricity which is no longer donated and expensed by all <br />City departments including the Library special revenue fund. <br /> <br />Public Purpose Expenditures <br /> <br /> <br />Changed wording for employee wellness to health rewards program. <br /> <br />Financial Impact <br /> <br />N/A <br /> <br />Attachments <br /> <br /> <br /> <br />Updated financial management policies. <br /> <br />