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RELEVANT LINKS: <br />F. Miscellaneous expenditures <br />League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 <br />Municipal Budgeting Chapter 211 Page 22 <br />Miscellaneous expenditures are those that do not fit in the other categories. <br />Examples of miscellaneous expenditures may include costs to maintain a <br />cemetery, costs to settle legal claims against the city and costs related to <br />enterprises like water and sewer that do not fit anywhere else. <br />VIII.Capital improvements <br />Minn. stat. § 412.221. <br />"Financing <br />Budgeting for city infrastructure (roads, bridges, buildings etc.) covers more <br />Infrastructure <br />Projects," Minnesota Cities <br />than one year so many cities separate these costs from yearly budgeting. <br />(Aug. 2009, p. 6. <br />Planning for future infrastructure costs is essential. A capital budgeting plan, <br />City of Faribault, <br />Capital Improvement Plan <br />sometimes referred to as a capital improvement plan or CIP, typically lists <br />2015-2019. <br />five or six years of major capital improvements, the order of priority, and a <br />way to pay for them. A plan allows a city to save money for these projects. <br />Priorities in the capital budget program remain tentative, and the council <br />reviews them annually. Although capital improvement budgeting may <br />appear cumbersome and unwieldy to small cities, this is actually not the <br />case. A capital improvement plan provides protection to small cities, <br />avoiding unforeseen infrastructure failures and expensive emergency repairs. <br />IX. Other regulations impacting municipal <br />budgets <br />A number of state and federal regulations require certain types of reports and <br />technical accounting strategies related to city budgets and city budgeting <br />practices. <br />A. GASB <br />Governmental Accounting <br />The Governmental Accounting Standards Board (GASB) issues statements <br />Standards Board. <br />Summaries of GASB <br />(so far 47 of them) that establish standards for accounting and financial <br />Statements. <br />reporting—or generally accepted accounting principles (GAAP)—for state <br />GASB 34 and Other <br />Governmental Accounting: <br />and local governments throughout the United States. In Minnesota, pursuant <br />Effective Dates, Office of the <br />to state law, the state auditor enforces the accounting standards for cities. <br />State Auditor. <br />Specifically, the state auditor requires and enforces compliance with GAAP <br />for cities with populations of 2,500 and higher. <br />Minn. stat. § 477A.017, subd. <br />However, state law does not require that cities with populations under 2500 <br />2. <br />"Financial Reporting for <br />report GAAP financial statements. (These cities may prepare GAAP <br />Small Cities," Office of the <br />statements as a good business practice or because of some contractual <br />State Auditor. <br />requirement, but are not required to do so by state statute). The state auditor <br />provides a discussion on compliance with GASB 34 in small cities in the <br />document, "Financial Reporting for Small Cities." <br />League of Minnesota Cities Handbook for Minnesota Cities 10/15/2015 <br />Municipal Budgeting Chapter 211 Page 22 <br />