7.5. SR 06-04-2007 - Laserfiche WebLink

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mining is complete, which is expected to start occurring to a small degree in the next five years and continue over several decades. The Land Use Financial Management Plan will be discussed at future City Council work sessions. Unreserved, undesignated fund balance in the general fund (41.5 percent of next year’s budgeted general fund expenditures) falls within the policy guidelines set by the Council for budgetary and planning purposes (minimum of 40 percent). Following the close of the general ledger and review of the financial management plan fund balance policy, the council at its discretion decides which funds to allocate the remaining balance. Cash management policies and practices. The City just completed a five-year cash needs analysis to forecast future revenues/expenditures to closely align with investment maturities to maximize interest earnings and cash needs of the City. Cash available during the year was invested in demand deposits, certificates of deposits, United States government and agency securities, and commercial paper as authorized by the City’s investment policy. The City also participates in a Local Government Investment Pool (4M Fund). This fund is a pool of funds belonging to participating local governments. This is a highly liquid fund which investments in commercial paper and United States government and agency securities. The City keeps a reserve balance in this fund to finance daily cash flow needs in order to avoid calling an investment early. All idle cash is maintained in an investment pool on a combined basis where all funds with a cash balance participate in the investment pool. The Economic Development Authority, water and electric funds do not participate in the investment pool. The water and electric funds are invested by the Elk River Municipal Utilities. The City’s investment policy states that the safety and liquidity of the portfolio are more important than the return on investment. The City’s policy closely follows all of the Minnesota State Statutes governing the investment of municipal funds. Risk management. The City of Elk River strives to limit both its liability risk and insurance costs in all areas and has been successful in both limiting risk and keeping premium costs reasonable. This is done by continually evaluating safety programs, maintaining adequate deductibles, maintaining correct property and equipment schedules, and working with the City’s insurance agent and underwriters to initiate programs to achieve those goals. The City maintains an emergency/insurance reserve fund for the purpose of funding insurance deductibles, promoting safety programs through our Safety Committee, and providing safety training to all employees. However, the City does not self insure and does not intend to self insure at any time in the future. The City’s Safety Coordinator and the Safety Committee are responsible for training all employees in the City’s safety policies to protect the City’s employees from work related injuries and to help reduce work related insurance claims. The results of this can be seen through the very low experience modification factor applied to our worker’s compensation insurance. 4