01-10-1994 Council Packet - Laserfiche WebLink

Home Browse Search

favorable bond rating- Adequate oty ftiai haiawr^c arc rcquircd for prelercntial bond ratings. Additional interest co^, and higher taxpayer burdens, result when cities without adequate fund balances receive poor bond ratings. The better the bond rating of a city, the lower the interest co^ of borrowing are to the taxpayer. RS-8. Ctty Financial Repon Reouirements (B) The League supports modernization and an increased level of comparability of financial Antn that cities report to state agencies. The League will continue to work with the financial reporting and accounting Oudy (FISREP), the Intergovernmental Information Systems Advisory Council (IISAC), and the Legislative Commission on Planning and Fiscal Policy to accomplish these efforts. The Ugislature should, however, fund the study and implementation of changes through the general fund, rather than the Local Government Trust Fund which is to be tUdicated to property tax relief. Local accounting practices and preferences should not be required to change as a result of the study, nor should local costs increase. Finally, requirements for reporting additional irtformation should be carefully weighed to determine the validity of the state *s need for local government data. Minnesota has one of the most modern and rigorous systems of municipal fmance oversight in the nation. The Office of the State Auditor currently receives and reviews annual financial reports from all cities. Cities over 2.500 are required to have annual audits and the Auditor has authority to audit any city. Cities also report financial data to the Department of Revenue, Pollution Control Agency (PCA), Department of Trade and Economic Development (DTED), and other state agencies. The private accounting field has proven to be fully competeiit to conduct city audits, and are likely to be more economkal than contracting with a public agency. Therefore, the League is opposed to giving the Office of the State Auditor the authority to audit cities or their instrumentalities. For all audits, local governments should be allowed to take proposals and use a private auditor rather than the State Auditor, if the government chooses. In addition, cities with populations under 2,5(X) should continue to be exempt fiom the expense of an annual audit. RS-9. Coopera and CoosoUda A •I, CoUah (B) A • The League supports the extensive efforts which have been made by cities across the state to provide services through cooperative agreements, collaboration and, in some asses, consolidated programs or governments. We support the creation of the Board of Government Innovation and Cooperation, and the opportunities it provides to help stimulate cooperative efforts and to eliminate mandates. Additional funding for grant programs, however, should not be funded through the local government trust fund and should not be at the expense of funding for current programs. The state needs to acknowledge that even with state encouragement, local officials are the most qualified to determine where shared or consolidated n^ices are most appropriate and will be most effective. Many studies and surveys of cities in Minnesota have shown that cooperative agreements and shared services are very common. Cities across the state continue to make efforts to increase the number and extent of programs provided, and/or to reduce the costs of public services. Because city officials are most qualified to assess local needs, the Legislature should not mandate cooperative agreements or consolidation requirements for any city services or the form of city government. 1994 City Policies and Priorities