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Discuss Draft Financial Policy Guidelines.
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Staff:
Department:
Maurice Jones, Town Manager
Manager's Office
Amy Oland, Director
Business Management
Overview: Financial policies are central to a strategic, long-term approach to financial management. At the Council retreat on January 25, 2019, Davenport & Company, the Town's financial advisors, presented on the Town's credit rating, current and future debt portfolio, and recommended that the Town consider adopting financial policies for debt, fund balance reserves, cash management and investment strategies, and Other Post Employment Benefit (OPEB) pre-funding strategies. At the March 4, 2019 budget worksession, the Town Manager and Business Management Director presented the draft Financial Policy Guidelines for Council review. We are returning to Council to provide additional information and receive Council feedback on the draft financial policy statements and recommended policy measures.
Recommendation(s):
That the Council receive and provide feedback on the following draft financial policy statements: Debt Policy, Fund Balance Reserve Policy, Cash Management and Investment Policy, and Other Post-Employment and Benefit (OPEB) Pre-Funding Policy. Business Management staff will incorporate the feedback provided by Council with a goal to return in June for policy adoption.
Key Issues:
* The benefits of adopting formal, written financial policies to help governments include:
I. Institutionalizing good financial management practices by promoting stability and continuity.
II. Clarifying strategic intent for financial management by defining a shared understanding of how the organization will develop its financial practices and manage its resources to provide the best value to the community.
III. Defining boundaries by for actions that staff may take in order to realize the organization's strategic intent.
IV. Supporting the Town's excellent bond ratings which reduces the cost of borrowing.
V. Promo...
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