021207 CC WS AgP
CITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, FEBRUARY 12,2007
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:30 P.M. or Immediately following
Regular City Council Meeting
AGENDA
1. CONVENE CITY COUNCIL WORK SESSION
A. Roll Call
Mayor Lizee _
Woodruff
Turgeon _
Callies
Wellens
B. Review Agenda
2. GOALS AND PRIORITIES (Att. - Administrator's memorandum)
3. FINANCIAL REPORTING AND EXPENDITURE DISCUSSION (Att. - Staff
memorandum, Finance Policies)
4. OTHER
5. ADJOURN
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD' SHOREWOOD, MINNESOTA 55331-8927 . (952) 474-3236
FAX (952) 474-0128' www.ci.shorewood.mn.us . cityhall@ci.shorewood.mn.us
Celebrating 50 Years + 1956 - 2006
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
City Council f\t:)
Craig W. Dawson, City Administrator V
February 8, 2007
Goals and Priorities during 2007 through First Qumier 2008
The purpose of the establishing the annual Goals and Priorities is for the City Council to identify
matters it wants to address and their relative importance. Staff identifies new mandates that must be
addressed and emerging trends for which the Council should plan. Items that, although important or
large in effort, are part of the usual cycle of activities, are not listed in Goals and Priorities. Rather,
the goals and priorities identified are meant to be things of a one-time nature that are to be
accomplished, or steps of processes that are to be improved. They should not be an extensive list that
takes the form of a work program.
An approach taken last year was to identify important values or strategic areas for the City to address.
This broader view helped to focus on major things across the organization to accomplish, rather than
on each individual department.
What follows is something in no pmiicular order to get us stmied.
1) Maintain and Enhance Infrastructure
a) Complete the development of a matrix to identify priority projects (1 st!2nd Qtr)
b) Prepare special assessment policies for stormwater improvements
c) Develop comprehensive inflow/infiltration (I/I) plan to evaluate Metropolitan Council
data and findings
d) Initiate installation of radio-read water meters; determine duration of implementation
e) Make a decision on renovation or replacement of City Hall, and when any
construction should begin
f) Reconstruct Badger Field lighting
-tf:
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".J PRINTED ON RECYCLED PAPER
Goals and Priorities during 2007 through First Quarter 2008
February 8, 2007
Page 2
2) Customer-friendly Enhancements
a) Begin phased implementation of electronic payments for general City fees and
transactions
b) Continue to expand public information available on Website
i. Open LaserFiche Weblink module for public access to Council minutes,
agenda packets, resolutions, ordinances, licenses and financial records via links
on the City's web site (with appropriate security); coordinate with installation
of new server.
11. Set up public access computer/kiosk in the front lobby of City Hall (3rd/4th Qtr)
111. Pavement inventory (as updated annually)
iv. Identify new items/topics to add to Web site
c) Work on new design for Web site and Newsletter
3) Enhance Internal (Administrative) Systems
a) Finalize electronic database for all as-built information re: public works infrastructure
b) Comply with Non-Point Discharge Effluent Standards (NPDES) documentation of
entire stormwater system and infrastructure checks (& attendant documentation)
c) Identify desired and achievable changes in budgeting and budget management
d) Identify relevant and meaningful activity indicators for budget
e) Implement new financial software (2nd/yd Qtr)
f) Replace network server (2nd / 3rd Qtr)
g) Research electronic City Council packets
h) Review planning inventory for mandated 2008 Comprehensive Plan Update
i) Evaluate continuation of municipal off-sale liquor enterprise (start Mar. 26)
j) Update election judge manual and training materials to incorporate new laws and
procedures
k) Accomplish Shorewood/Tonka Bay corporate boundary change in County Road 19/
Smithtown Road intersection area
4) Environment and Quality of Life Improvements
a) Community celebrations
i. Improve quality of and attendance at Music-in-the-Park
ii. Improve quality of and attendance at Arctic Fever
b) Begin design for Mary Lake outlet, for 2008 construction
c) Evaluate relationships/responsibilities of cities and Friends of the SouthShore Center
re: building (start Feb.)
d) Evaluate allocation for programming services at SouthShore Center
e) Develop data base for historic/cultural/architectural buildings and features
f) Review and update parking requirements in zoning code
g) Review/implement recommendations for Planning District 6 (CR 19 from Excelsior to
Tonka Bay city limits)
Goals and Priorities during 2007 through First Quarter 2008
February 8, 2007
Page 3
5) Enhance Public Safety
a) Participate in discussion of funding allocations for Excelsior Fire District (start Feb)
b) Review additional community service officer (CSO) services from SLMPD (including
animal control)
This is not meant to be an exhaustive list, but rather something to get us stmied. This will be the
item on the February 26 work session. Staff would find it particularly helpful for Council to
identify priority topic areas and projects.
c: Department Directors
CITY OF
SHOREWOOD
5755 COUNTRY CLUB ROAD. SHOREWOOD, MINNESOTA 55331-8927' (952) 474-3236
FAX (952) 474-0128 . www.ci.shorewood.mn.us . cityhall@ci.shorewood.mn.us
Celebrating 50 Years + 1956 - 2006
'MEMORANDUM
TO: Mayor & City Councilmembers
FROM: Craig W. Dawson, City Administrator ;r5J -
Bonnie Burton, Director of Finance ~
DATE: February 8, 2007
SUBJECT: Financial Reporting & Expenditure Work-session Discussion
At the January 8, 2007, Council meeting, Councilmember Woodruff presented two motions
related to City financial reporting and expenditures. The City Council then decided to move the
discussion of these items to the February 12 work session so that staff could provide information
regarding the proposed motions. (Copies of the proposed motions attached.)
Back2rouncl & History
The City Council establishes the City's overall spending program with the adoption of the annual
budget. The budget is approved policy of the financial resources plan to accomplish the City's
work in the following year.
The budget process starts in Mayas a forecast of activities, and their estimated costs, that are
most likely to occur in the period 7 to 19 months hence. Line items are used to guide the
preparation of departmental budgets. Often, the budget is prepared based on "typical" years -
for example, for snow plowing; for maintaining parks and turf; with "normal" summer rainfall
amounts in the water utility; with conservative forecasts of building permits.
Staff presents the Council with responsible and realistic budget figures; they are not "padded" in
anticipation of the likelihood of reductions by Council. The Council reviews the budgets in a
series of work-sessions throughout summer and fall with modifications as needed along the way.
PaIi of this six to eight month budget process involves periodic review of the City's financial
status, usually on a qUaIierly basis. A few years ago, monthly financial repOlis to the line-item
level were provided to council (see sample at worksession). The volume of these repOlis was
considered excessive at the time. However, similar monthly reports will be prepared if that is
what the Council desires.
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" . PRINTED ON RECYCLED PAPER
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Page 2
Timin2 & Process
The City's finances are not organized on a monthly work-plan of expenditures or revenues. The
City receives its major influx of revenue just twice each year: in June and December when
Hennepin County distributes the propelty taxes it has collected. Meanwhile, the City's
obligations may be due on a semi-annually, qumierly, or monthly basis.
For example, a very brief look at January 2007 expenditures indicates that Shorewood has
already exceeded 95% of the monthly spending allocation in the General Fund because, 1) the
City paid the 1 st qumier allocation to the Fire District in January for 3 months' activity, and 2)
the City paid a semi-annual debt service payment on its share of the Southshore Center building
lease. The City has previously agreed to these financial obligations and is required to honor
them. On the revenue side, the City received about 1 % of its anticipated revenues. The largest
of infusions of cash will come from tax proceeds received in June and December.
Thus, quarterly financial statements may help smooth some of the timing differences inherent in
municipal operations. And ultimately, on an annual basis, it would appear that spending within
the approved budget-on the division, department, or fund level-is well-controlled during the
year. Changes in spending from year to year are controlled by budget-setting decisions.
The attached information from the City's Certified Annual Financial Reports (CAFRs), shows
the City has generally spent within the approved budget for the General Fund dming the past ten
years. Expenses in excess of an overall approved budget are due to unusual unanticipated one-
time events that were all authorized by the City Council dming that budget year.
Current Financial Controls
The City Council currently has a number of controls for oversight of the financial function.
These include the annual budget process as previously described; regular financial statements
(whether quarterly or monthly); the Verified Claims List that appears in each Council Packet
authorizing payments to vendors for goods and services; the periodic "Requests for
Authorization to Expend Funds" for various goods and services; the statutory bidding process for
large projects in excess of $50,000; the City's custom and process of obtaining at least 2-3 bids
or quotes for less expensive items.
In addition, staff has prepared a draft version of its Internal Control Policy that describes the
City's current process to ensure the integrity of the City's financial system and assets. The
City's auditor has indicated support of such a policy and staff hopes Council would formally
approve this policy also.
Comments and Observations
Circumstances may change throughout the year related to line items, division or depaItment
activities or needs, or within each Fund. Staff members are expected to manage to the bottom
Page 3
line of their responsibility (a division, a department, or a Fund), and have the leeway to optimize
the use of all of the financial resources available to them in the budget.
The City also receives another set of revenues four times per year: from the quarterly billings for
water, sanitary sewer, stormwater, and recycling utilities. Enterprise Fund cash-flow
management is handled on the cycles of revenues with historic patterns of expenditures
throughout the year, as well as the timing of other major (usually project-based) expenditures.
A vailable cash is invested in accordance with the City's Investment Policy (attached). The
investment goal of public funds is the preservation of principal and liquidity, therefore the
investment vehicles used are conservative.
In either case, the City's financial software will provide information down to line-item amounts,
although there is virtually no graphic capability within the software. The Council should decide
whether it is most useful for all of its members to see data to this level, or what level of summary
information would be needed for the Council in its role to review financial activities.
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CITY OF SHOREWOOD, MINNESOTA
INTERNAL CONTROL POLICY
The City of Shorewood seeks to balance its intemal accounting control in such a way as
to ensure public confidence and maintain the integrity of its financial systems and assets,
without unduly inhibiting the ability to efficiently cany out its mission.
I. Cash Disbursements
Goal
The goal of the City Council in establishing an internal control system for cash
disbursements is to safeguard the assets of the City and to ensure an appropriate level of
fiduciary responsibility.
Objective
The objective of the City Council in meeting this goal is to ensure that cash is disbursed
only upon proper authorization of management for valid governmental purposes, and that
all disbursements are properly recorded.
Procedures
1. Se2re2ation of Duties
No financial transaction shall be handled by only one person from beginning to end.
a. Payment of all claims shall be authorized by the appropriate department head,
the Finance Director, the City Administrator, and the City Council.
b. Checks shall be signed by the Mayor and the Finance Director. In the absence
of one of the above, the City Administrator shall be designated to sign checks.
All checks, including payroll checks shall require two signatures.
c. Payments shall be coded and recorded by the Senior Accounting Clerk. In the
absence of the Senior Accounting Clerk, the Finance Director may code and
record payments.
d. Financial reports and bank reconciliations shall be prepared by the Finance
Director and presented to the City Council on a quarterly basis.
1
e. Supplies shaIl be ordered on a monthly basis, or sooner if needed, by the
following authorized individuals:
'Y Administration Depatiment
'Y Public Works Depmiment
Recepti onist/Secretary
Public Works Director
f. Supply orders for Administration shall be inventoried, upon receipt, by the
following authorized individuals:
'Y Administration Depmiment
'Y Public Works Department
Recepti oni st/Secretary
Public Works Director
In the absence of the person authorized to take inventory for a specific
department of the City, the following individuals are authorized to perfOlID
occasional inventories of supply orders:
'Y Administration Department
'Y Public Works Department
Finance Director
Designated Employee
g. Checks shall be properly velified for authorization and signature and prepared
for mailing by the Senior Account Clerk.
2. Accountin2 Controls
The following common internal controls relate to paying bills:
a. All disbursements, except those from petty cash, will be made by pre-numbered
checks.
b. It is not permissible to draw checks payable to Cash.
c. Under no circumstances will blank checks be signed in advance.
d. A disbursement voucher shall be prepared for each invoice or request for
reimbursement that details the date of check, check number, payee, amount of the
check, description of the expense account to be charged, authorization signature,
and be accompanied with related source documents. In accordance with M.S.
471.38, subd. 1, et. seq., the voucher must contain the following declaration: "[
declare under the penalties of law that this account, claim, or demand is just and
correct and that no part of it has been paid. "
e. Expenditures must be approved in advance by authorized persons.
f. All signed checks will be mailed promptly by the Senior Account Clerk or
Recepti onist/Secretary.
2
g. The individuals authorized to sign the checks shall review each cash disbursement
voucher for the proper approval authorization and supporting documentation of
expense.
h. Vouchers will be marked "Paid" and include the date paid, the check number and
the amount of the check.
1. Invoices and requests for reimbursement will be checked for accuracy and
reasonableness before approval.
J. A monthly cash disbursement journal will be prepared that details the date of the
check, check number, amount of check, and description of expense account to be
charged.
k. Unpaid invoices shall be maintained in an unpaid invoice file by the Senior
Accounting Clerk.
l. Purchase orders shall be pre-numbered.
m. Expense reports for travel related expenses shall be submitted on a timely basis.
n. Checks by which claims are paid shall have printed on the reverse side, above the
space for endorsement: "The undersigned payee, in endorsing this check declares
that the same is received in payment of a just and correct claiTn against the City of
Shorewood, and that no part of it has heretofore been paid. "
o. In accordance with M.S. 471.425, subd. 2, claims of the City shall be paid within
35 days from the date of receipt, or as otherwise stipulated by the terms of a
contract. Claims not paid within this time frame will be subject to penalty and
interest charges assessed by the vendor, as provided for in M.S. 471.425, subd. 4.
p. Disallowed claims shall be so marked and kept in a file for an appropliate time
period.
II. Payroll
Goal
The goal of the City Council in establishing an internal control system for payroll
disbursements is to safeguard the assets of the City and to ensure an appropriate level of
fiduciary responsibility.
Objective
The objective of the City Council in meeting this goal is to ensure that payroll
disbursements are made only upon proper authorization to bona fide employees, that
payroll disbursements are properly recorded, and related legal requirements (such as
payroll tax deposits) are complied with.
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Procedures
1. Se2re2ation of Duties
PayroIl checks should be written in keeping with the procedures for all other cash
disbursements as noted above. Additional requirements related to the payroIl function
to be perfOlmed by persons who are not payroll check signers are as foIlows:
a. The Senior Accounting Clerk shall hold unclaimed paychecks.
b. The Finance Director shall review the payroll register and the Senior
Accounting Clerk will post payroIl to the general ledger.
c. The Finance Director will review payroll-related tax withholding, deposits and
repOlting and prepare repOlis of same for the City Council.
d. The Senior Accounting Clerk shall prepare year-end W -2' s to employees and
the Finance Director will review same.
2. Accountin2 Controls
The following common internal controls relate to payroll:
a. Time sheets are required to document employee hours, including overtime,
and leave time.
b. Time sheets must be signed by the employee and the employee's immediate
supervisor authorizing payment for work.
c. Employment records will be maintained for each employee that detail wage
rates, benefits, taxes withheld, and any changes in employment status.
d. Payroll-related taxes, including employer share, shall be withheld and paid to
the appropriate government agency on a timely basis.
e. The Finance Director will review and sign all payroll tax returns.
f. Written personnel policies shall indicate the leave time all owed for vacations,
holidays, sick leave and other benefits.
g. A list of payroll checks written, with appropliate taxes withheld, will be
maintained in a separate payroll register.
h. Generally, overtime must be authorized by the appropriate depattment head
before it is worked. Emergency exceptions may be authOlized by the City
Administrator.
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III. Petty Cash
Goal
The goal of the City Council in establishing an internal control system for a petty cash
fund is to safeguard the assets of the city and to ensure an appropriate level of fiduciary
responsibility.
Objective
The objective of the City Council in meeting this goal is to provide guidelines for the use,
safekeeping and repOlting standards of the petty cash fund, while allowing for small
purchases or reimbursements to be made from said fund.
Procedures
1. Se2re2ation of Duties
The petty cash fund is available to staff to make small purchases or reimbursements,
in cash, for items such as stamps, office supplies, parking, etc., using the following
guidelines:
a. The Receptionist/Parks Secretary shall be the custodian of the Petty Cash
Fund and will be the only person to have access to the cash.
b. The custodian of the Petty Cash Fund shall be responsible for reconciling the
fund on a quarterly basis and submitting an expense report to the Senior
Accounting Clerk.
c. The Finance Director will make the appropriate entries to record the expenses
and will anange for replenishment of the Petty Cash Fund.
2. Accountin2 Controls
The following guidelines will govern the use and keeping of the Petty Cash Fund.
a. The Petty Cash Fund will not exceed the amount of $100.
b. The Petty Cash Fund will be kept by the custodian in a locked box. The box
shall be kept in a secure place. The custodian will be the only person with
access to the funds.
c. Payment for items costing over $25 must be made by check rather than
reimbursed through petty cash.
d. Withdrawals from the Petty Cash Fund will be made only by completing a
Petty Cash Voucher. The voucher must state the date and amount of the
withdrawal, the reason the cash was withdrawn, the expenditure Accounting
to which the expense should be charged, and the name and signature of the
person receiving the cash.
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e. SuppOliing documentation (receipts, invoices) must be attached to each
voucher.
f. Unannounced counts of petty cash and change will be made on occasion by
the Finance Director.
g. No staff member shall be allowed to cash personal checks, including pay
checks, in the petty cash funds of the City.
h. Under no circumstances shall staff members be permitted to borrow from
petty cash funds for personal use.
III. Cash Receipts
Goal
The goal of the City Council in establishing an internal control system for cash receipts
is to safeguard the assets of the City and to ensure an appropriate level of fiduciary
responsibility.
Objective
The objective of the City Council in meeting this goal is to ensure that all cash intended
for the City is received, promptly deposited, properly recorded, reconciled, and kept
under adequate security.
Procedures
1. Se2re2ation of Duties
No financial transaction shall be handled by only one person from beginning to end.
a. The Receptionist/Secretary will be responsible for receiving all cash payments
to the City, whether by mail or in person. In the absence of the Accounts
Receivable Clerk, the Deputy City Clerk, or Finance Director may receive
cash payments.
b. The Senior Accounting Clerk will be be responsible for depositing cash
receipts daily and coding and recording the same in the general ledger
accounts of the City.
c. Financial reports and bank reconciliations shall be prepared by the Finance
Department and presented to the City Council on a periodic basis.
d. Invoices for utility services shall be prepared by the Senior Accounting
Clerk/Utility Billing Clerk. Invoices for other city services shall be prepared
by the Senior Accounting Clerk or Finance Director. An accounts receivable
register for utility billing will be maintained by the Utility Billing Clerk. All
other accounts receivable will be maintained in a register by the Senior
Accounting Clerk.
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e. Departmental Cash: The following individuals are authorized to receive cash
payments in the individual depattments of the City:
>- Building & Planning Department
Recepti onist/Secretary
All other depmiments of the City typically do not receive cash. In the absence
of the person designated to receive cash payments, the department head of the
depmtment will receive the payment.
The following individuals shall record the receipt of the cash payment and
arrange for the transmittal of the funds from the individual departments of the
City to the Senior Accounting Clerk:
>- Building & Planning Depmiment
Recepti onist/Secretary
In the absence of the person authorized to record and transmit cash payments,
an employee will be designated by the department head to perform the duties.
2. Accountin2 Controls
a. All payments to the City shall be accompanied by a pre-numbered cash
receipt, stating the date of the receipt, the amount of the receipt, a description
of the item or service being paid for, and a descliption of the revenue account
the revenue should be allocated to.
b. A monthly cash receipts journal will be prepared that details the date of the
receipt, receipt number, amount of receipt, and description of the revenue
account to be credited.
c. The pre-numbered receipt shall be two-part. The first pati will be given to the
payer, the second pati will be retained with the payment and given to the
Senior Accounting Clerk for recording and filing.
d. All cash receipts will contain the signature, or at least the initials, of the staff
member receiving the payment.
e. An accounting of change given for cash should be noted on the receipt.
f. Cash shall be deposited in the City's bank account on a daily basis. Under no
circumstances shall payments, whether by cash or other instrument, be kept
longer than one week.
g. Cash receipts shall be kept in a safe, vault, or similar secure place.
h. Cash receipts shall be reconciled on a monthly basis by the Senior Accounting
Clerk.
7
1. Payments made in cash shaIl be received by the Senior Accounting Clerk and
the Receptionist/Secretary. The cash shall be counted and verified by both
staff persons. The receipt shall indicate that the payment is a cash payment
and will contain the signatures of both staff persons.
Adopted by the City Council of the City of Shorewood this 26th day of February,
2007.
Approved:
Attest:
Mayor
City Administrator
8
CITY OF SHOREWOOD, MINNESOTA
INVESTMENT POLICY
1. SCOPE
This investment policy applies to activities of the City of Shorewood, Minnesota with
regard to investing the financial assets of all funds, including the following:
. General Fund
. Special Revenue Funds
. Debt Service Funds
. Capital Project Funds
. Enterprise Funds
. Intemal Service Funds
. Trust and Agency Funds
2. OBJECTIVES
Investments of the City of Shorewood shall be in accordance with Minnesota Statutes
475.66 and this policy shaIl be undertaken in a manner that seeks to ensure the
preservation of capital in the overall pOltfolio. To attain this objective, diversification is
required in order that losses on individual securities do not exceed the income within the
entire portfolio.
The City will seek to place all of its deposits and investments with Minnesota
depositories and/or broker/dealers.
A market average rate of retum will be sought throughout budgetary and economic
cycles. The investment strategy will take into account the constraints on risk and cash
flow characteristics of the investment portfolio.
All officials and employees that are part of the investment process shall seek to act
responsibly as custodians of the public trust. The investment portfolio shall be designed
and managed with a high degree of professionalism wOlthy of the public trust. The City,
1
however, recognizes that in a diversified pOlifoIio, occasional measured losses are
inevitable and must be considered within the context of the overall POlifolio's investment
return, provided adequate diversification has been implemented.
3. POOLING OF INVESTMENTS
For purposes of making the maximum amount of funds available for investment, cash
assets for all City funds may be pooled in an investment account. Interest earnings are
allocated among the vmious funds based upon their monthly cash balance.
4. DELEGATION OF AUTHORITY
In accordance with Minnesota Statutes 471.56, the responsibility for conducting
investment transactions resides with the Finance Director/Treasurer and, in the absence of
the Finance Director/Treasurer, the City Administrator (hereafter called "investment
officers"). The investment officers are authorized to make investments of public funds.
No person may engage in an investment transaction except as provided in this policy.
5. PRUDENCE
Investments shall be made with judgment and care. The standard of prudence, as defined
by Minnesota Statutes 356A.04, meaning not for speculation and with consideration of
the probable safety of the capital as well as the probable investment return, delived from
assets, will be applied in all investment transactions.
The investment officers, acting in accordance with this written policy and exercising due
diligence, shall not be held personally responsible for a specific security's credit risk or
market price changes, provided that these deviations are reported immediately and that
appropriate action is taken to control adverse developments.
6. INTERNAL CONTROLS
Internal controls are designed to prevent loss of public funds due to fraud, error,
misrepresentation, unanticipated market changes or imprudent actions. Before the City of
Shorewood invests any surplus funds, an analysis of possible investments shall be
conducted. If a specific maturity date is required, either for cash flow purposes or for
conformance to maturity guidelines, quotations will be requested for instruments which
meet the maturity requirement. If no specific maturity is required, an analysis of various
options will be conducted to determine which maturities would be most advantageous.
Quotations will be requested from financial institutions for various options with regards
to term and instrument. The City of Shorewood will accept the option which provides the
highest rate of return within the maturity required and within the limits of these policies.
2
The investment officer shall generate monthly reports which will include data on
investment instruments being held by the City.
Investment records of the City shall be reviewed by independent auditors as pati of the
City's annual audit for compliance with state statutes and this policy.
7. ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal
business activity that could conflict with the investment program, or which could
reasonably cause others to question or doubt their ability to make impartial investment
decisions.
8. PARTICULAR PROVISIONS OR RESTRICTIONS
In selecting depositories, the credit worthiness of the institution shaH be considered and
the investment officers shall conduct a comprehensive review of prospective depository
credit, characteristics, services available, and financial history. Selection will be in
accordance with Minnesota Statutes 118.005 and 118.01
Before engaging in investment transactions with the City of Shorewood, the supervising
officer at the securities broker/dealer shall submit a certification. The document will state
that the officer has reviewed the investment policies and objectives, as well as applicable
state law, and agrees to disclose potential conflicts of interest or risk to public funds that
might arise out of business transactions between the firm and the City of Shorewood. All
financial institutions shall agree to undertake reasonable efforts to preclude imprudent
transactions involving the City of Shorewood's funds.
9. INSTRUMENTS
The City of Shorewood will only invest in instruments which are in accordance with
Minnesota Statutes 475.66. Investment is allowable in any mortgage derivative product
which is not "high risk" per Minnesota Statutes 475.66. Documentation of such
compliance with at least the results of three separate independent statutory "impact" tests
all of which indicate that the security is not "high risk" is required. Test results will be
kept on file for audit purposes.
At the time of purchase of any mOltgage or mortgage related security, the investment
officer will obtain documentation of compliance with this policy.
10. CUSTODIAL RISK
The investment officer shall structure all investments, deposits, and repurchase
agreements so that the custodial risk is at all times in category # 1 or # 2 under GASB
Statement # 3. All investments are placed in safekeeping at financial institutions.
3
11. DIVERSIFICA TION/MA TURITIES
It is the policy of the City of Shorewood to diversify its investment pOlifolio to eliminate
the risk of loss resulting from over-concentration of assets in a specific maturity, a
specific issuer or a specific class of securities. The maturities selected shall provide for
stability of income and reasonable liquidity.
Adopted by the Shorewood City Council, 1996
4
January 8, 2007
Text for Motion offered by Richard Woodruffto City Council, City of Shorewood, MN
on this date
Background: The City Council desires to have direct approval for, and control over, City
expenditures in calendar year 2007 which, in the aggregate over the calendar year, consist
of amounts in excess of95% of amounts budgeted for 2007.
A Motion is made to direct Staff to limit its monthly and year-to-date spending for all
aspects of City operations to 95% of the 2007 budgeted amounts unless specific approval,
in advance, is secured from the City Council.
Approval of expenditures in excess of 95% shall be sought from Council through Staff
presenting to Council a detailed plan for such expenditures including: a cost-benefit
analysis and evidence that such expenditures are in support of specific goals and
objectives listed in the 2007 City's prioritized Work Plan for 2007. Presentations shall be
at regularly or specially-scheduled Council meetings.
So Moved:
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January 8, 2006
Text for Motion offered by Richard Woodruff to City Council, City of Shorewood, :iv1J',T
on this date.
Background: The City Council should have the tools it needs to ensure adequate
oversight of spending and adherence to budgets. One of these tools is timely reporting by
City Staff on actual expenditures vs. budget.
A Motion is made to direct Staff to present to Council at the second regularly scheduled
Council meeting of each month the following information:
_ Line item detail, consistent with the departments and line items in the 2007 budget,
showing spending by budgeted department vs. budget for the month
_ Line item detail, consistent with the departments and line items in the 2007 budget,
showing spending by budgeted department vs. budget for the year-to-date
including a graphical presentation ofthe total spending vs. budget year-to-
date
_ Line item detail and graphical presentation of actual year-to-date spending vs. budget
for the combined General Fund budget and for each special fund budget included in the
City's overall 2007 budget package.
The initial presentation on of this infonnation shall cover the month of January, 2007;
December, 2006 and 2006 year-end and shall occur at the second February Council
meeting
So Moved: 0" ./
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