09-11-07 FPAC Agenda - Laserfiche WebLink

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this point. However, the city might purchase the land for future development. 411 The city's financial operations have remained strong. The city ended fiscal 2005 (Dec. 31)with a $1.5 million unreserved general fund balance, or a very strong 48% of expenditures. Operations have continued to produce positive results, with fiscals 2004 and 2005 showing general fund surpluses of around $200,000 annually. Unaudited fiscal 2006 showed another general fund surplus. The fiscal 2007 budget is showing break-even operations, but city officials believe the result will be another surplus. The city targets to keep the general fund at around 50% of expenditures. Property taxes account for more than 70% of general fund revenues. The city's management practices are considered good under Standard & Poor's Financial Management Assessment (FMA). An FMA of good indicates that practices exist in most areas, although not all may be formalized or regularly monitored by governance officials. The city bases its revenue and expenditures on four years of historical information while also consulting local groups. Management tracks its budget to actual performance with quarterly reporting to the city council. Budget amendments are typically done three times annually, but the city could do more, if necessary. The city does maintain a rolling five-year capital improvement plan. The city does not have formal rolling financial projections, but is currently formulating a rolling 10-year plan. The city's investment policy follows the state guidelines, with quarterly compliance reporting to the city council. The city does not have a formal debt management policy. The series 2004A bond issue represents the city's only long-term GO debt outstanding.With the remaining outstanding balance of the series 2004A bonds, the city's net overall debt, which includes overlapping debt, is moderate at $2,846 per capita and 2.4% of market value. At this time, the city does not have any additional debt plans. Outlook • The stable outlook reflects the expectation the city will maintain its strong financial position to offset taxpayer concentration. Rating stability is also grounded in the city's participation in the Minneapolis-St. Paul MSA. Complete ratings information is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com.All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Analytic services provided by Standard&Poor's Ratings Services(Ratings Services)are the result of separate activities designed to preserve the independence and objectivity of ratings opinions.The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase,hold,or sell any securities or make any other investment decisions.Accordingly,any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment decision. Ratings are based on information received by Ratings Services.Other divisions of Standard&Poor's may have information that is not available to Ratings Services. Standard&Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process. Ratings Services receives compensation for its ratings.Such compensation is normally paid either by the issuers of such securities or third parties participating in marketing the securities.While Standard&Poor's reserves the right to disseminate the rating, it receives no payment for doing so,except for subscriptions to its publications.Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. Copyright©2007 Standard&Poor's,a division of The McGraw-Hill Companies.All The efiffelltY Hff Rights Reserved.Privacy Notice -- . •