Laserfiche WebLink
Financial Planning and Analysis Committee Presentation: <br />NOTE: THIS IS A FIRST DRAFT. THE OBJECTIVE OF THIS DOCUMENT IS TO <br />ILLUSTRATE FRAMEWORK. ANY EXAMPLES ILLUSTRATED ARE FOR <br />DISCUSSION PURPOSES AND ARE NOT YET THE OPINION OF THE <br />COMMITTEE. <br />Objectives: <br />• Enhance credibility and confidence in the FPAC to provide judgment within <br />financial analysis <br />• Increase `financial education' within the City of Arden Hills <br />• Build trust that financial decisions over time can enhance responsible financial <br />behavior <br />• Identify tools and techniques that can inform debate and decisions at the Council <br />Bench (allow discussion in the abstract without decisions hinging upon the <br />discussion) <br />Background: <br />There are three general types of longer term capital investment that are the responsibility <br />of the City Council. These include: <br />1. Creation of New Capital Assets / Benefits for the City and Community (examples; <br />new trails, pedestrian bridges, new parks, new streets in neighborhoods, <br />• improvement to signalized intersection, etc). <br />2. Replacement of existing City and Community Infrastructure (examples; <br />replacement of depreciated city roads, water towers, revitalization of County <br />Road E neighborhood, replacement of park equipment, replacement of fully used <br />equipment, etc). <br />3. Emergent replacement of broken or lost City and Community Infrastructure <br />(examples; pump failure in lift station, repairs following a City emergency / <br />storm, accident involving city vehicle, equipment failure in active water -tower, <br />etc). <br />Financial Considerations: <br />Within each category there are similar financial considerations. These over time will <br />impact City Capital Fund Balances, Ongoing Tax Policy/Tax Levies, Annual Budget <br />Allocation to Capital Fund Balances, Potential for City Bonding, and Potential for City <br />Grant Applications. In general each investment could be evaluated on the following <br />criteria: <br />1. Community Need for the Capital Asset <br />2. Community Benefit or Return on Investment <br />3. Availability of uncommitted City Cash or Fund Balances <br />4. Availability of uncommitted borrowing capacity <br />5. Availability of Grants or other general funding <br />b. Availability of TIF financing or future tax deferrals <br />0 <br />