4.0. SR 05-31-1994
r\.( -\.(
( II
!Ii{ River
ITEM 4.
MEMORANDUM
TO:
MAYOR & CITY COUNCIL
FROM:
PAT KLAERS, CITY ADMINISTRATOR
DATE:
MAY 26, 1994
SUBJECT: 1993 AUDIT
Mr. Gary Groen of Abdo, Abdo, and Eick will be attending the City Council
meeting to make a presentation of the 1993 City Audit. Additionally,
Finance Director Lori Johnson and I will be present to discuss the status of
City funds. Attached for your review is the 1993 City Audit, and within this
document, a letter from the Finance Director to the City Council regarding
the status of City finances.
e
As reviewed in previous City Audits, it is the goal of the City to have a fund
balance for cash flow purposes of approximately 35% of the total General
Fund. These monies are necessary in order to finance the operation of the
City until the State funds and tax revenues become available in July of each
year. The City did add to the cash flow fund balance in 1993, but this fund is
still below the level necessary to finance City expenditures until other funds
become available. The City annually has to borrow monies internally in
order to meet cash flow needs.
Overall, the City Council should take a great deal of pride in the improved
status of the City finances in 1993. A significant amount of credit must go to
the City Council for this improved financial picture. Guidance of the City
Council has allowed the City to achieve a more secure financial status in the
early 1990's than what was experienced ten or fifteen years ago.
Additionally, a great deal of credit also must go to the City Finance
Department and the Finance Director for the management of City funds. For
the fourth year in a row the City has received the Certificate of Achievement
for Excellence in Financial Reporting. This is the highest award presented in
the nation for financial reporting.
e
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425