Agenda Packets - 1992/12/28 - Laserfiche WebLink

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5. Manage the City's insurance programs and evaluate and recommend modifications to ensure maximum protection at minimum cost. 6. Oversee the debt management program of the City. 7. Oversee the City's general purchasing program. In recent years external factors have caused a reprioritization of the duties and responsibilities of the Finance Department. Economic considerations, i.e., the economy and State's "fiscal crisis", , have brought about an increasing emphasis upon financial reporting. New, generally- - . - . . _ • I •I l . 1 a a . a . e•ortin' re a uirements mandated b the State of Minnesota, have and will continue to promote greater disclosure and understanding of City finances by bond rating services, State and Federal agencies, the general public, and other readers of City financial statements. Economic conditions have precipitated reductions in the amounts of Federal and State Aids to cities. Those reductions have challenged cities to maintain levels of service to their citizens with reduced revenues. The City has met this challenge through improved financial planning. The annual budget has been substantially improved in recent years as a result of greater involvement and participation by staff and Council. In 1988, 1989, 1990, and 1991 the Government Finance Officer's Association of the United States and Canada (GFOA) awarded it's Distinguished Budget Presentation Award to the City for its budget document. As a consequence, the City has been able to continue to provide needed public services to its residents with only modest increases in property tax rates and develop cash flow and contingency reserves needed to maintain its financial integrity. In order to maintain its ability to provide needed public service to its residents, the City needs to maintain the present level of financial planning and to expand long range planning efforts begun with the 1983 Water and Sewer System Maintenance and Capital Improvement Program. That type of planning should be undertaken for acquisition/replacement and maintenance of all land, buildings and equipment. _Staff has prepare _ep-l.acement schedule for all City vehicles and equipment. The City has established a fund into which monies will be placed annually for replacement of vehicles and equipment. The purpose of this fund is to ensure that necessary funds be on hand for timely replacement of vehicles and equipment and to avoid large unplanned expenditures or "budget busters" which would place a strain on the City's finances. One of the goals of the Department the past few years has been to maintain/or improve the City's bond rating; that goal has been accomplished. In April of 1991 the City received a rating of A from Moodys Investors Service for a Water Revenue issue e City's financial advisors stated that this was the best rating that could be obtained by a City of our size. The rating committee of Moodys felt that the City had sound financial management. They were 15