State of MN Financing Local Government in the 1980's

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VOTO, REARDON, TAUTGES & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS VLS!r Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Phone 426 -3263 To the Honorable Mayor and Members of the City Council ROBERT J. VOTO, CPA TIMOTHY E. REARDON, CPA ROBERT G. TAUTGES, CPA The most significant events affecting the future financial management of your City and all Minnesota local government units continue to occur at the State level rather than at the local level. These events (collectively referred to as the State budget or cash -flow situation) have been affecting Minnesota local government units since August, 1980. INTRODUCTION Over the past several years, we have analyzed trends in the financing of local government in Minnesota and how these trends have changed. Financing Minnesota local government in the 1980's will be substantially different from that of the 1970's. These changes must be addressed by those charged with the responsibility for City operations. This Report has been prepared to identify major changes and to communicate this information to City Councils and Administrators to assist in the future financial management and planning of the City. This Report consists of a narrative section followed by a statistical data section. The narrative section is intended to: • Define the State budget situation and the financial partnership between State and local governments. • Detail major methods used by the State to resolve its budget situation and how these methods effected local government. • Forecast what local government can expect in the future and what local government must do to protect its interests in the State /local financial partnership. The statistical data section consists of historical and budgeted financial data excerpted from various State Reports and detailed in the Table of Contents. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS