10-12-2006 Charter Packet - Laserfiche WebLink

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Memorandum To: Charter Commission From: Gordon Heitke Date: September 22, 2006 Re: Agenda items 6 A, B, C A. Five Year Plan A draft Five Year Financial Plan was presented to the City Council in November, 2005. The City Council conducted a retreat in February, 2006 at which staff presented concerns related to current policies and practices which may result in long term financial challenges for the City and taxpayers. The City Council accepted the recommendations of staff to hold special study sessions to conduct a comprehensive review of the City's long-term financial situation to fully understand the long-term financial prospects of the City and to address specific financial issues. The staff also recommended that the City Council assume a much more involved role in analyzing the City's financial policies and conditions and in the development of the Five Year Plan. The City Council agreed that it would be best to undertake this financial analysis prior to finalizing and adopting the Five Year Financial Plan. The City Council has held two study sessions, June 13 and August 9, to analyze and address financial issues related to general fund management, Area and Unit Fund use and balance trend, special assessment policies, street maintenance and reconstruction funding (per the Pavement Management Plan), Surface Water Management Fund use and balance trend, Sewer Access Charge Fund policy, Dedicated Parks Fund balance, outstanding debt and financing decisions on past projects, reduction of state aid revenues, and the impacts of these and other factors on the future financial vitality of city fund balances and tax levies.