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CITY QUESTION 1 (Excelsior)
CHAPTER IX, FINANCIAL PLANNING & REPORTING
Shall the Excelsior City Charter be amended to add the following?
Introduction: This section of the Charter outlines the processes for Financial Operation of the city and specifies actions relative to the two important City Financial Documents. They are the Annual City Budget, and the rolling Long Term Financial Plan.
The rolling Long Term Financial Plan shall cover at least the next five years, be in compliance with the latest guidance from the GFOA (Government Finance Officers Association), be consensus driven (Elected Officials, City Staff and the Public) and be under the full authority of the City Council.
The Annual City Budget is the comprehensive one year financial document for the city. It shall include every City financial fund, the City Manager's Summary Message (Ref. Section 9.06, Subdivision 5), a description of each fund category and a description of each fund
Section 9.01 Council to Control Finances The Council shall have full authority over the financial affairs of the City except as limited or prohibited by the MN constitution, MN laws, or this Charter. It shall provide for the collection of all revenues and other assets, and the auditing and settlement of accounts. It shall further provide for the safekeeping and disbursements of public monies by the City Treasurer.
Section 9.02 Reporting Requirements It shall be the City Manager's responsibility to ensure all financial information alpha or numeric, as outlined in this Charter, is published in a timely and accurate manner, and is meaningful to the intended users. The term "intended users" is defined as city council members, staff and citizens. "Meaningful" is defined as financial information that is reasonably acceptable and understandable to the public. Such financial information shall be explained by a narrative summary using alpha, numeric and graphical presentation as necessary. This summary shall be set forth in language designed to be readily understood by the layperson. A "layperson" is defined as a person who does not have professional financial training or background.
Section 9.03 Accounts and Reports The City Manager shall be the Chief Accounting Officer of the City and of every branch thereof, and the Council may prescribe and enforce proper accounting methods, forms, blanks, and other devices consistent with the Law, this Charter and the Ordinances in accord with it. The City Manager shall submit to the Council a statement each month showing the amount of money in the custody of the City Treasurer, the status of all funds, the amount spent or chargeable against each of the Annual Budget allowances and the balances left in each, and such other information relative to the finances of the City as the Council may require.
The Council may at any time and shall annually provide for an audit of the City finances by a Certified Public Accountant or by the Department of the State of MN authorized to make an examination of the affairs of municipalities.
On or before the first day in June in each year the City Manager shall prepare and obtain agreement from the City Council the City's Annual Citizen's Report, which communicates a complete financial and operating depiction of the city, for the current and prior year. This complete report, including all Annual Budget and capital expenditures for the prior year, shall be summarized in a form compliant with Section 9.02. Additionally an updated version of the City Managers Budget Summary (outlined in Section 9.06, Subdivision 5) for the current year shall be incorporated into this report. This report shall be published on the City web site, mailed to each address in the City, and referenced in the next City newsletter. Alternative dissemination methods may be used providing these methods reach the same or larger segment of the City. This information will also be available in both electronic and paper format for review, lending, or purchase at cost by interested persons during regular business hours at Excelsior City Hall.
Section 9.04 Annual Financial Calendar
Subdivision 1. Fiscal Year The fiscal year of the City is defined by MN Statute as the calendar year. The Annual Financial Calendar is based on that definition.
Subdivision 2. Financial Planning Guidelines
Annual Financial Calendar Adoption: The Council shall annually adopt an annual financial calendar by Feb 1st. The calendar will establish the time line for development and submission of the Long Term Financial Plan and the Annual Budget and allow for public review and comment in accordance with this Charter, the City Council, and MN Statutes.
Annual Financial Calendar Procedures: The calendar will provide a 30-day period for public review and input to the Annual Budget prior to final approval by the City Council. During the month of October the Council shall have a public meeting primarily dedicated to public input on the preliminary Annual Budget for the ensuing year. All other budget planning meetings shall be so conducted as to give interested citizens a reasonable opportunity to be heard.
Annual Financial Calendar Requirements: The purpose of this section is to provide the public with a general time table for the annual financial planning process. The dates are subject to change by the City Council in extraordinary circumstances and MN Statutes.
Activity Estimated Time Period
Long Term Plan: Development Jan. 1 to May 1
Annual Financial Calendar: Adopted by Council Feb. 1
Long Term Plan: Council publishes priority items list by March 1
Long Term Plan: Public Review May 1 to May 20
Long Term Plan: Council Public Hearing and Approval by June 1
City's Annual Citizen's Report: Mailed to Public by June 1
Long Term Plan: Published to Public by Aug. 1
Annual Budget: Council publishes priority items list by July 1
Annual Budget: Preliminary Budget and Summary of funds
provided from the Property Tax Submitted to Council by Sept. 15
Annual Budget: Preliminary Budget to be provided
from the Property Tax and Tax Levy Estimates:
Council Adoption by Sept. 15
Annual Budget: Council Review and Amend Sept. 15 to Nov. 23
Annual Budget and Tax Levy: Proposal
Published to Public Sept. 15 to Dec. 1
Annual Budget and Tax Levy: Public Review Sept. 15 to Dec. 22
Annual Budget: Council Meeting for Public Input Oct.
Annual Budget and Tax Levy: Public Meeting Nov. 24 to Dec. 22
Annual Budget and Tax Levy: Council Adoption Dec. 5 to Dec. 22
Annual Budget and Tax Levy: Final Council
Budget Summary Published to Public by 60 days after Council Adoption
Section 9.05 Annual Budget The Annual Budget is its comprehensive financial document for one year. The Annual Budgeting process is largely determined by the MN statutes. Some budget actions and dates are determined by MN statutes, which may change from time to time. If this charter does not comply with MN statutes, the MN statutes shall override those provisions.
Section 9.06 Submission of the Annual Budget
Subdivision 1. Council Adoption of Annual Goals and Objectives Annually, on or before the 1st calendar day of July of each year, the City Council shall establish, by resolution, a prioritized list of goals and objectives to be funded in the next year's Annual Budget. This list shall provide the guidance to the City Staff in preparing the preliminary Annual Budget for the next year, and shall provide the Public with the priorities of the City as established by the City Council. This list shall be published in the City newsletter, City website, and the official City Newspaper. Alternative dissemination methods may be used providing these methods reach the same or larger segment of the City. This information will also be available in both electronic and paper format for review, lending, or purchase at cost by interested persons during regular business hours at Excelsior City Hall.
Subdivision 2. Submission of Proposed Annual Budget Annually, on or before the 15th calendar day of September of each year or as specified by MN Statutes the City Manager shall submit to the Council the budget estimates for funds levying property taxes for the ensuing fiscal year, along with an accompanying summary message in accordance with a budget calendar to be established by resolution.
The total preliminary budget to be provided from the property tax shall not exceed the amounts authorized by MN law and this Charter. Consistent with these provisions, the budget shall contain such information and be in the form prescribed by the City Council. The final budget shall provide a complete financial plan for all City funds and activities for the ensuing fiscal year. Except as required by MN law or this Charter, the final budget shall be in such form as the Council may require. The budget shall include a summary and show in detail:
All estimated income and all proposed expenditures, including debt service, and
Comparative figures for the current fiscal year, actual and estimated, and the preceding year.
Comparative figures for the annual Consumer Price Index, CPI, for the previous year. The CPI is defined as: The US Bureau of Labor Statistics for All Urban Consumers (CPI-U), Minneapolis St Paul
In addition to showing proposed expenditures for current operations, it shall show proposed capital expenditures to be made during the year and the proposed method of funding each such capital expenditure.
Subdivision 3. Submission of Proposed Enterprise Budgets Annually, on or before the 1st calendar day of November of each year the preliminary budget for each enterprise fund[1] operated by the City will be presented to the Council. The enterprise fund budgets shall be approved concurrently with Council approval of the General Fund budget. For each enterprise fund, its preliminary and final budgets shall show income, expenditure by category of income or expense and a comparison with the CPI. It shall also show the anticipated net surplus or deficit of each enterprise fund with the proposed disposition method. These budgets shall be available for the general public prior to or on the last day of January.
Subdivision 4. Annual Capital Plan An annual Capital Plan for the ensuing fiscal year will be included with the Annual Budget at the time of its approval.
Subdivision 5. City Manager's Budget Summary The City Managers Budget Summary message, as per Section 9.02, above, shall explain the budget, both in fiscal terms and in terms of the work programs, linking programs to specific goals established or adopted by the City and community priorities. It shall outline the proposed financial policies and programs of the City for the ensuing fiscal year and the impact of those policies and programs compared to the City's current Long Term Financial Plan, as adopted by the City Council. It shall describe the important features of the budget; indicate any major changes in financial policies, expenditures, and revenues together with the reasons for such changes. It shall address comparative spending to the CPI. It shall summarize the City's debt position for each fund, including factors affecting the ability to raise resources through debt issues, and include such other material as the City Manager deems desirable or as requested by the City Council. This summary message shall be updated as of the time of Adoption of the Annual Budget and shall become an integral part of the Annual Budget.
Section 9.07. Council Action on Annual Budget
Subdivision 1. Budget Action Leading to Budget Approval The preliminary budget to be provided by the tax levy shall be considered at the first regular monthly meeting of the Council in September and at subsequent meetings until a budget is adopted for the ensuing year.
The Council may revise the preliminary budgets but no amendment shall increase the authorized expenditures to an amount greater than the sum of estimated income and reserves.
During the month of October the Council shall have a public meeting primarily dedicated to public input on the preliminary Annual Budget for the ensuing year. All other budget planning meetings shall be so conducted as to give interested citizens a reasonable opportunity to be heard.
The Council shall adopt the budget by a resolution that shall set forth the total for each budgeted fund and each department. The budget shall indicate the sums to be raised and from what sources and the sums to be spent and for what purpose as the Council deems necessary for establishing the budget.
The Council shall also adopt a resolution levying the amount of taxes provided in the budget, and the City Clerk shall certify the tax resolution to the County Auditor in accordance with MN law. Adoption of the budget resolution shall constitute appropriations at the beginning of the fiscal year of the sums fixed in the resolution of the several purposes named.
The final budget will be published no later than 60 days after adoption by the Council in the official City newspaper, the City newsletter and the City web site. Alternative dissemination methods may be used providing these methods reach the same or larger segment of the City. This information will also be available in both electronic and paper format for review, lending, or purchase at cost by interested persons during regular business hours at Excelsior City Hall.
Subdivision 2. Failure to Adopt a Budget If the Council fails to adopt the budget by the beginning of the next fiscal year, the preceding month's fiscal year budget shall go into effect for up to thirty-one (31) days or until the Council adopts a budget.
Section 9.08 Long Term Financial Plan
Subdivision 1. Council Adoption of Long Term Goals and Objectives Annually, on or before the 1st calendar day of March of each year, the City Council shall establish, by resolution, a prioritized list of goals and objectives to be placed in the Long Term Financial Plan. The priorities shall be in order of importance and in order of which years they should be accomplished. This list shall provide the guidance to the City Staff in preparing the preliminary rolling Long Term Plan for the next year, and shall provide the Public with the priorities of the City as established by the City Council. This list shall be published in the City newsletter, City website, and the official City Newspaper. Alternative dissemination methods may be used providing these methods reach the same or larger segment of the City. This information will also be available in both electronic and paper format for review, lending, or purchase at cost by interested persons during regular business hours at Excelsior City Hall.
Subdivision 2. Financial Plan Consideration and Adoption The City Council shall have prepared a Long Term rolling financial plan commencing with the ensuing calendar year. The City Council shall hold a public hearing upon at least 10 days posted and published notice in the City's official newspaper and also on the City web site. The City Council shall then adopt the Long Term Financial Plan, with or without amendment, by June 1st of each year. The plan shall have applicable line items containing comparative figures for the forecast annual Consumer Price Index (CPI) for each year of the plan. The CPI is defined in the most recent Congressional Budget Office Economic Outlook as the Consumer Price Index for all urban consumers. The rolling financial plan shall consist of at least the following four elements as specified in subdivisions 3 through 7 which follow:
Subdivision 3. Economic Synopsis The plan shall include a synopsis of the state of the economy including federal, state and local factors as well as information related to the long term CPI. It shall also include information regarding major items to be considered by the Council such as major capital items or major changes to the City's revenue and expense estimates for each year of the Long Term Financial Plan.
Subdivision 4. The Capital Improvement Program This part of the financial plan shall contain a list of all capital improvements proposed to be undertaken during the each fiscal year of the Long Term Financial Plan, with appropriate supporting information as to the necessity for such improvements; cost estimate, method of financing and recommended time schedule for each such improvement; and the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. This information shall be revised and extended each year for capital improvements still pending or in process.
Subdivision 5. Long Term Revenue and Expense Estimate This part of the financial plan shall contain a tentative revenue policy that describes plans for financing public services and capital improvements in the Long Term Financial Plan. It shall measure the objectives and needs for each City department, the standard of services desired, and the impact of each such service on the annual budget.
Subdivision 6. The Capital Budget This part of the financial plan shall be a summary of the capital or money requirements for each of the above described programs. It shall list a priority for each anticipated investment in community facilities and balance this with a consideration of the availability of necessary revenues.
Subdivision 7. Public Services Program Budget The program shall be a continuing plan for all public services, estimating future needs for the public health, safety and welfare of the City, including estimated costs for fire, police, and public safety; also costs for legal services; consultant fees by type; and all city personnel costs. It shall measure the objectives and needs for each City department or service; the standard of services desired, and the impact of each such service on the annual budget for Excelsior.
Subdivision 8. Plan Summary Published A summary of the Long Term Financial Plan, which shall comply with Section 9.02 of this Chapter, shall be published before August 1st each year in the official City newspaper, the City newsletter and City web site. Alternative dissemination methods may be used providing these methods reach the same or larger segment of the City. This information will also be available in both electronic and paper format for review, lending, or purchase at cost by interested persons during regular business hours at Excelsior City Hall.
[1] Enterprise Fund Definition: Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private businesses, where it is the intent to provide goods or services to the general public on a continuing basis, financed primarily through user charges.
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