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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 asierts-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 /> I_ 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 /> I. 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 /> 6. Availability of TIF financing or future tax deferrals <br /> • <br />