HomeMy WebLinkAbout#12 - CC_1 19 16_Pro forma services_Northland__13
MAYOR & COUNCIL COMMUNICATION
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DATE: January 19, 2016
REGULAR
ITEM #13
AGENDA ITEM: Financial Planning Services Agreement-Northland Services
SUBMITTED BY: Clark Schroeder, Interim City Administrator
THROUGH: Clark Schroeder, Interim City Administrator
REVIEWED BY: Finance Director Bendel, Finance Committee, Northland Securities
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation…………………………………………City Administrator
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Interim City Administrator
IMPACT: Not to exceed $3,000 for base model and $160/hr for quarter (estimated at less
than 4 hours per quarter) - unbudgeted expense
SUMMARY AND ACTION REQUESTED:
This item was initially presented to the City Council for consideration on December 15, 2015. At that
time the item was tabled by the City Council with a request to add the item to the 1/12/16 workshop and
have the workshop be a joint meeting with the Finance Committee to have further discussion on this
topic. The workshop was held and all questions were discussed related to this item.
It is recommended that Northland Services be hired to take over the pro forma projection model
as they have done similar work like this for the City in the past.
BACKGROUND INFORMATION (SWOT):
In 2012, the City of Lake Elmo entered into a contract with Northland Securities to provide
Financial Planning Services/Analysis, specific to the Enterprise Funds. A detailed report was
prepared and presented to the Lake Elmo City Council on February 28, 2013.
Since that time, a new model has been developed that has become unmanageable and
cumbersome.
City Council Meeting [Regular Agenda Item #13]
January 19, 2016
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Hiring Northland will allow the City to return to a more simplified approach for analyzing the
Enterprise Funds. Northland will develop and present a report to the Finance Committee and
City Council and provide subsequent quarterly updates.
Strengths An independent analysis will provide the Council with a clear picture of
the impact to the funds and free up staff time. It will remove the distraction and burden that his
has put on staff.
Weaknesses The City will have less detailed info and lose flexibility for interim
updates.
Opportunities Northland is very familiar with Lake Elmo and the planned growth to date
and envisioned for the future, thereby being best situated to provide advice to the Finance
Committee and City Council.
Threats None identified.
RECOMMENDATION:
Staff is recommending that the City Council approve entering into a Financial Planning
Agreement between the City of Lake Elmo and Northland Securities for an amount not to exceed
$3,000 for generating a pro-forma model for the Enterprise Funds and $160 per hour for
subsequent quarterly updates.
“Move to approve hiring Northland Securities Inc. to provide Financial Analysis Services to
the City of Lake Elmo for an amount not to exceed $3,000.00 for generating a pro-forma
model for the Enterprise Funds and $160.00 per hour for subsequent quarterly updates”.
ATTACHMENT:
None