Compliance Report 1982 - Laserfiche WebLink

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"Revenue from the state increased by 103% and 17.25% from the federal government." "When we look at intergovernmental revenues and know that there have been cut -backs from those sources, we examine the undesignated general fund balance." Carlson reported that their findings show ithe fund balance stood at $21,287 in 1980. "This does not provide you with a great deal of flexibility to meet cash flow needs. The amount is 1.26% of total expenditures and less than 10% of the money received from intergovernmental sources. You might want to look seriously at increasing the amount to act as a buffer in these times of uncertain funding from intergovernmental sources." "We see the impact of special assessments again when we look at the per capita debt burden. Although the per capita debt has increased significantly, 70% is in special assessments." Carlson continued, "All of this debt is backed by the full faith and credit of the city but probably should be paid from special assessments rather than general tax revenue." "Your financial management is to be commended for keeping the debt burden at $257 as the average for cities of a similar size is $600." Carlson continued his formal report with two items of caution: 1) The water and sewer utilities lost money in 1980, and if you haven't already increased those rates you might consider it, and 2) If you amend your budget because of budget overruns you should include the information as part of your audit report. Carlson, in explaining the Minnesota Financial Health Program, said, "This is a service our office performs for municipalities that identifies, measures and helps to resolve fiscal problems. When public officials can monitor debt service payments, enterprise funds, revenues and expenditures and other financial indicators over a period of years, they will be able to identify areas of fiscal stress." "It is important to look at the trends over the period from 1976 to 1980 for which the data was collected and not to look at the individual years. There are variables such as special assessments or grants that show large increases in one year, and the decrease the following year should not be a cause for alarm. We look at the whole five year period and the patterns of revenues and expenditures for those years. The profile proves a framework for assembling and analyzing information. Although some conclusions have been drawn from the study, the actual reasons can only be answered by those who manage the financial affairs of the city."