04-22-2019 Council Packet - Laserfiche WebLink

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(3) RELEVANT FINANCIAL POLICIES The City is in the process of reviewing and formalizing its financial policies. The City recently updated its investment policy. In 2011, the City amended its fund balance policy to reflect the requirements of fund balance reporting addressed by GASB Statement No. 54. The policy also sets a fund balance minimum and maximum for the General Fund. The CIP that was adopted in 2012 is updated annually and is the basis for long-range capital planning and budgeting for the City. MAJOR INITIATIVES Cooperative Efforts with Other Jurisdictions The City is involved in cooperative arrangements for fire services with the City of Long Lake. Long Lake provides service to the City for fire services. The cities of Long Lake and Orono jointly own a fire station and have a contract for service through 2024. The City provides police protection to the cities of Spring Park, Minnetonka Beach, and Mound. The efficiencies provided by one department serving four communities provide all of the cities enhanced services. For example, one larger department allows for dedicated investigators, school resource officers, and participation in a regional drug task force. The City continues to be involved with a group of fourteen cities located adjacent to Lake Minnetonka in an effort to identify new opportunities for cooperative service delivery to enable improved services and increased efficiency. Water and Sewer Infrastructure The City operates and maintains both a water distribution and sanitary sewer collection system. The City’s sanitary sewer collection system discharges into several Metropolitan Council Environmental Services (MCES) interceptor sewers for treatment by MCES at the Blue Lake treatment plant. The City pays MCES for sanitary sewer treatment charges on a quarterly basis, and these MCES treatment costs are included in the City’s sewer billing to residents. The City is continuing a proactive infiltration and inflow reduction program to eliminate significant sources of inflow and infiltration of ground water into the City’s sanitary sewer system. In 2015, the City invested $250,000 in a sewer lining project to promote this effort. Because the MCES charges are based on measured flow, any reduction of inflow and infiltration results in lower charges. The City has two water towers to serve the needs of the urban portion of the City. The two water towers have become significant revenue generators through leases to telecommunications providers to meet their antenna needs. The antenna revenue generated by the two water towers in 2017 was $108,174.