HomeMy WebLinkAbout2007-02-06 Council Work Session MINUTES OF THE SPECIAL WORK SESSION
OF THE EDINA CITY COUNCIL
HELD AT CITY HALL
FEBRUARY 6, 2007
5:20 P.M.
ROLLCALL Answering rollcall were Members Bennett, Housh, Masica and Chair Hovland.
Staff present included, Gordon Hughes, City Manager; Heather Worthington, Assistant City
Manager; Ceil Smith, Assistant to the City Manager; John Wallin, Finance Director; Eric
Roggeman, Assistant Finance Director; Wayne Houle, City Engineer; Jennifer Bennerotte,
Communications Director; and Darlene Wallin, Administration Secretary.
Director Wallin indicated that Standard & Poor's (S & P) recently released its new Financial
Management Assessments Criteria. S & P will provide its traditional bond rating, along with
an assessment of financial management - rated strong, standard or vulnerable. S & P
introduced the Financial Management Assessments Criteria making policies and practices
more transparent that are considered most critical to credit quality. S & P, in order to perform
the analysis, will rely on documentation provided by the City and with the organization's
management.
The Finance Department, has, recommended tightening some of the City's financial policies
in order to protect the City's AAA and Aaa bond ratings. Mr. Wallin noted the City's
objective was to mitigate credit risk and interest rate risk with adjustments to the investment
policies. He noted that highlights of proposed changes to the financial policies would include
additions to budgetary controls and fund balance policies.
The legal level of budgetary control is located within the General Fund. The City Manager
may approve budgetary transfers and the Council may approve supplemental
appropriations.
Mr. Wallin noted at the end of the fiscal year, unreserved designated fund balance would be
maintained for Compensated Absences of 40 percent of the actual full-accrual General Fund
liability. The City at that point would maintain unreserved designated fund balances for
cash flow in a range equal to 40-45 percent of the subsequent year's budgeted tax revenue. If
the amount should fall below that range, the City would create a plan to restore funds to an
appropriate level. The policy indicated when the actual amount designed for cash flow falls
above the range; excess funds automatically would be transferred to the revolving
Construction Fund to support capital improvements. Mr. Hughes noted formal acceptance of
the Financial Policies would be on the agenda at a future regular Council meeting.
Mayor Hovland declared the meeting adjourned at 6:30 P.M.
Respectfully submitted, r
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3
Debra A. angen, ity Clerk