From
Brady Olsen, Treasury and Debt Manager
Title
Resolution reviewing and approving the City's Financial Management Policy
Presenter
Becky Brooks, Chief Financial Officer
Recommended Action
Approve
Analysis
The City's Financial Management Policy is a formally approved document that serves as the guidelines and parameters in developing the City's financial position. It is reviewed annually for necessary updates and presented to the Finance and Government Committee for consideration. With new leadership in the Finance staff, several sections of the policy have been updated. The majority of the revisions are either to ensure finance practice is in line with finance policy or to update the policy to industry best practices. Changes include:
1. Extending the time required to complete the audit from 120 days to a range of 120-180 days. This time frame ensures the maximum amount of available information can be included in the annual document.
2. The recommendation of partner rotation in our auditing firm.
3. Reduce formalization in the mode of required information communication.
4. Match the current format of the city's annual budget to the city's policy.
5. Allow for specific city-related projects to be presented outside of the annual capital budget.
6. Remove specific percentage-based requirements for the annual funding of maintenance to increase budgetary flexibility.
7. Allow for increased use of fees or charges to provide revenue flexilibity in light of the SB2.
8. Provide greater evaluation of the ongoing use of TIFs within the city.
9. Allow for greater flexibility in the spending of interest earnings.
10. Remove mention of the City Manager's approved policies.
11. Update reserve and coverage requirements to meet ongoing rating agency standards.
12. Update legal references for the purchasing policy.
13. Reduce financing requirements to provide greater budgetary flexibility in light of SB2.
14. Improve internal transparency in grant applications.
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