2024 Annual Comprehensive Financial Report

 River City Centre: Renovations and new streetscape were completed and the retail portion of the building controlled by the City’s EDA is one hundred percent leased.  Memorial Park: The city removed the former Chamber of Commerce building and restrooms along with a remote shelter that was no longer used. The removals were observed under a State of Minnesota plan with an archeologist present at all times. The entire park and the removal areas have been planted in native seeds to recreate the historic Oak Savannah. Historically, the city has issued only limited debt, in the form of bonds and internal funding for planned infrastructure projects, expansion specific to streets, underground utilities, trails and sidewalk expansion. A portion of the long-term debt is funded by special assessments against benefited properties. The city applies special assessments against benefitted properties at a rate of 30% of the assessable project costs. City capital and equipment needs are currently identified and funded in a manner that will not place an undue burden or single year expense fluctuation on the taxpayers. The planned CIP clearly identifies the needs for current projects as well as future use. This is based on known and anticipated programs and mandates, such as environmental program adjustments and possible community expansion and growth. The capital and equipment needs of the city require constant appraisal for replacement cost, life span and the assurance that the insurance coverage is providing for the most comprehensive, yet affordable, coverage. Annually the City develops a 15-year CIP, which is a schedule of planned projects and funding sources that extend past the more detailed five-year CIP. The document increases transparency, project coordination and financial planning of future projects. The City also prepares a Long term Financial Plan annually that includes trend analysis and ten-year General Fund projections, which allows for a view on city finances from a wider perspective. These documents are reviewed and discussed with the City Council and included as part of the adopted five-year CIP. The city’s target General Fund balance is to maintain an unassigned level between 35% and 50% of expenditures. This level is to provide working capital for cash flow, expected declines in revenues, and for unforeseen expenditures such as natural disasters, or for unforeseen but urgent requests. Replenishing the fund balance when it falls below the target level shall be accomplished by inter-fund transfers, or adjusting of expenditures or revenues, over a period not to exceed three years. The accounting, auditing and financial reporting policies are designed to maintain a system of financial monitoring, control and reporting for all operations and funds to provide effective means of ensuring that overall city goals and objectives will be met and to assure the city’s residents and investors that the city is well managed and fiscally sound. Long-Term Financial Planning Relevant Financial Policies

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