1982.07.19 CC Minutes - Laserfiche WebLink

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711V®,•... a.r.r�w.r. e+.w..,...,.rw �...w.�,a...o.w..«w:.,... • a • ,p Carlson recommended that the fund balance be kept at the 1980 level or be increased. "These are the reserves needed for cash flow purposes and so necessary at these times of cut backs from state and federal revenue sources. " "Two other categories that point to Hugo' s careful financial planning are seen in the per capita debt burden .and in the water utility. " "The per capita debt burden has decreased steadily since 1976. However, the $228.38 level of 1980 is much smaller than the $642. 87 average found in cities of similar size. " "And the small profit seen in the water utility indicates that rates are being adjusted when necessary, " Carlson concluded. 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. " Carlson said that very few comparisons among cities will be made at this time as there is no uniform method of reporting financial data. Municipal Finance Officers felt that in order for the Minnesota Financial Health Program to be a successful and helpful project a uniform chart of accounts and reporting needed to be developed. Therefore, the Office designed a new and comprehensive chart which was distributed to Finance Officers in December. This effort will enable future profiles to contain more comparative information. • Carlson reported that Minnesota is the first state in the nation to provide the data such as that presented to cities through the Minnesota Financial Health Program, and that cities can use this report as a basis for future fiscal planning. "Our Office stands ready to provide assistance, when requested, to cities as they seek alternative courses of action to improve their overall financial health, " said Carlson. -30-