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HomeMy WebLinkAboutItem 07Item #7 �akevllle A&VI City of Lakeville Finance Department Memorandum To: Mayor and Council City Administrator From: Dennis Feller, Finance Director Date: January 10, 2014 Subject: Finance Committee: Goals 2014 -15 The terms of the Finance Committee appointments are from April 1 to March 30 of the following year. The following therefore is a review of Finance Committee activities - based on Duties as delineated in the Resolution Establishing the Finance Committee - concurrent with terms of office. a) DUTY. Short and long term financial planning to include fees for services (structure and policy) and alternative finance methodology. Not to include spending or taxation levels. 2013 -14 Accomplishments ✓ Review Capital Improvement Plan 2014-2018 2014 -15 Goals ➢ Review Capital Improvement Plan 2015-2019 ✓ Review Alternative non -tax financing - Franchise Fees ✓ Overview of 2014 Budget ➢ Review the Five Year Financial Projections ➢ Overview of 2015 Budget b) DUTY. Financial policies and practices, to include but not limited to fund balance policy, debt management policy and investments policy. 2013 -14 Accomplishments ✓ Liquor Fund Financial Policy 2014 -15 Goals c) DUTY. Local, state and national trends in finance and economy to include but not limited to bond markets, Federal Reserve and Department of Commerce. 2013 -14 Accomplishments ✓ Five Year Financial Management Plan Economic indicators and trends 2014 -15 Goals ➢ Five Year Financial Management Plan Economic indicators and trends d) DUTY: Legislative issues to include but not limited to levy limits and property tax relief programs. 2013 -14 Accomplishments ✓ Discussion of the 2013 Legislative Issues 2014 -15 Goals ➢ Discussion of the 2014 Legislative Issues e) DUTY: Review of quarterly financial reports and Comprehensive Annual Financial Report. 2012 -13 Accomplishments ✓ Comprehensive Annual Financial Report 2012 and (Auditors) Management Report 2014 -15 Goals ➢ Comprehensive Annual Financial Report 2013 and (Auditors) Management Report ✓ Interim Financial Report • 1 Quarter 2013 • 2 Quarter 2013 • 31d Quarter 2013 ➢ Interim Financial Report o 1st Quarter 2014 o 2 " Quarter 2014 o 3rd Quarter 2014 f) DUTY. Public communications and education programs related to budget and City finances to include but not limited to budget format and public presentations of the budget. 2013 -14 Accomplishments ✓ Identify Public Information endeavors 2014 -15 Goals ➢ Identify Public Information Endeavors ✓ Provide recommendations regarding the Truth in Taxation Inserts ✓ Budget in Brief g) Other 2013 -14 Accomplishments ✓ Review and discussion of Health Insurance (City Plan) ✓ Review property tax structure and trends ➢ Provide recommendations regarding the Truth in Taxation Inserts ➢ Budget in Brief ✓ Review "Envision Lakeville" �•i Lnti t77:� Memorandum To: Mayor and Council Steve Mielke, City Administrator From: Dennis Feller, Finance Director Date: January 10, 2014 Subject: Five Year Financial Projections: 2014 - 2018 Pu rpose City of Lakeville Finance Department The purpose of a five year financial projections is to develop strategies for financial sustainability based on a vision of the future and an identification of established priorities. Process The process of developing a five year plan involves a number of steps involving City Council, staff and Finance Committee over the course of the next four months. The following are the major components in the process. Community Assessment. The objective of the assessment is to identify the foreseeable community and City government strengths, weaknesses, opportunities and threats. The process also involves identification of current and future conditions as well as issues, projects and programs including but not limited to emerging trends, growth implications, aging infrastructure, innovation and efficiencies, economic development, quality of life, safe community, and entrepreneurial initiatives. The process will also take into consideration the recommendations evolving from the Envision Lakeville process. Potential financial implications would also be identified. Economic assumptions. Economic factors such as inflation, interest rates and growth may affect the outcome of City financial projections. The baseline economic assumptions are therefore established in advance of developing the financial projections. Operations (and Capital Improvement) Plan. The City Council has adopted a five year Capital Improvement Plan. The financial position and outcomes of the adopted Capital Improvement Plan will be a component of the Five Year Financial Projections. The Adopted 2014 Budget will be the baseline for future financial projections. The 2015 — 2018 financial projections will be based on prevailing economic and community conditions and the premise there will be no changes in service levels. Maintaining current service levels based on growth may necessitate investment in future resources such as staffing. The projections will take into consideration the financial implications of community growth. The projections will not include financial requirements for addressing pending issues and new services, programs and projects identified in the Community Evaluation process that are not currently being provided. Report. The Five Year Financial Projections document will include an overview of community assessment process, economic assumptions, operations (and capital improvement plan) as well as the financial projections of all funds including observations, conclusions, issues and concerns (if any). Key statistical indicators will also be provided to support the observations and conclusions. COMMUNITY ASSESSMENT OPERATIONS L FINANCIAL PLAN PLAN SERVICES CAPITAL IMPROVEMENT IDENTIFY& PRIORITIZE CR ITI CAL ISSUES i ECONOMIC & COMMUNITY ASSUMPTiON� 1 IDENTIFY & ESTABLISH KEY INDICATORS i Schedule of Events Presentation of Financial Projection Process. Subject to Council approval, the Financial Projection development process will be presented to the City Staff in January and the Finance Committee at their February meeting. The process and the participant roles will also be discussed at the joint City Council — Finance Committee meeting at the end of February. Community Evaluation. The City Staff will develop the Community Assessment in February. A draft of the Community Assessment will be distributed to the City Council at their March work session and to the Finance Committee at their March meeting. Economic assumptions. The Finance Committee will review the economic assumptions at their March meeting. Operations Plan. The City staff will develop the Operations Plan in February and March for incorporation into the Five Year Financial Projection Report Report. The Five Year Financial Projections document will be presented to the Finance Committee at their April meeting and the City Council at the April work session. Jan I Feb I Mar I April May PROCESS REVIEW Staff Council Finance Committee COMMUNITY EVALUATION Staff Council 11111111111111111 DEVELOP ECONOMIC ASSUMPTI Staff Finance committee OPERATIONS PLAN Operations financing Staff The Five Year Financial Projections may illuminate operation and /or financial issues which may require "recalibration" efforts. The process may also provide guidance in the discussion of pending issues, polices, projects and programs in advance of the 2015 Budget process. Staff looks forward to Council direction in the Five Year Financial Projection process.