史蒂夫NASBY
城市管理员
温敦(人口4,423人)

温敦之城, 就像美国所有的社区一样, is being squeezed by the concurrent forces of rising costs for goods, 服务, 和劳动, while the bond market demands higher interest rates on new debt for capital projects. For those of us old enough to remember the late 1970s and early 1980s, the current economic situation is like a bad movie we have seen before. 好消息是，这种情况将会结束. 但结局将会不同.

在高度不确定的时期进行规划

作为公共基金的受托人, we city officials need to prepare our annual budget and long-range financial plan with a higher degree of uncertainty, while remaining mindful of the impact these economic conditions will have on taxpayers. Financial best practices can help manage our economic risks. Best practices include maintaining strong reserves, 采用正式的资本改善计划, 预测五年预算, 注重偿债管理, 用现金购物, and employing a structured investment strategy. Expense risk can be mitigated somewhat by measures such as looking at locking in pricing via contracts or shuffling capital projects to maximize savings through economies of scale or lowering mobilization costs. Partnering with other municipalities or counties can also provide a cost savings. In Windom, we work jointly with Cottonwood County on seal coating. 该县有封皮涂布机, 但没有自己的扫街车, so we trade 服务 with them to complete projects on both city streets and county roads. Both parties save on costs versus hiring a contractor.

Now may be an opportunity to invest in municipal funds

here is an opportunity right now for cities to invest in municipal funds. 存单市场, federally backed securities and other permitted investments are going up due to the Federal Reserve’s decision to raise the Federal Funds rate. In our community, we use a laddering approach to invest our reserve funds. Advantages include a guarantee that some cash will be available at set intervals to meet cash needs without incurring penalties for early distribution. Also, it lowers risk by increasing options to get in or out of the market. With the volatility of the current market, this is key. The more rungs on your ladder the greater diversification you have in your portfolio. 即使面临经济挑战, I am confident of the professionalism in our municipal organizations to succeed.

达林纳尔逊
财务总监
明尼通卡(人口53,760)

This time last year, inflation started to become a talking point during our 2022 budget development. Indications at the time were that inflation would quickly moderate and not be a significant concern. 快进一年, inflation is now one of the key drivers in the development of our city’s 2023 budget and long-term forecasts.

加油站出什么事了

One of the most notable items affected by inflation has been fuel. Minnetonka was fortunate to lock in 2022 fuel prices under the state contract before prices started to spike. Those prices will expire at the end of the year, and new pricing will undoubtedly be much higher. Inflation is also affecting natural gas and electric rates. These two areas have been relatively stable and historically haven’t been much of a budget discussion topic until this year.

从长远的角度来看, our latest five-year Capital Improvement Program (CIP) forecasts higher than average increases almost across the board, from vehicle replacements to construction and maintenance contracts. These increases are detrimental to available fund balances and will continue to drive future levy increases.

Minnetonka is using reserves to supplant increased capital outlay costs. The city’s fund balance policy allows excess funds to be transferred to capital project funds for one-time uses. The city’s General Fund ended the 2021 fiscal year in a solid financial position, with revenue exceeding budget due to various activities.

提前决定购买消防车

One of these uses included advancing an originally scheduled fire engine purchase from 2023 to 2022. Supply chain disruption has increased the build time on fire engines from an average of 12 months to 18 months, which meant the fire engine would not arrive until mid-2024 if the city waited until January 2023 to order. There were also signals that suggested prices could increase 10% before year end, 在已经升级的价格之上. 考虑到这些因素, the city council authorized advancing the fire engine purchase to 2022, 可能会为城市节省80多美元,000.

对外汇储备仍持谨慎态度

Reserves are a limited resource and can only go so far. As part of the annual budget and CIP development process, long-range levy forecasts are developed and shared with the city council. 通过预测未来的税收增长, the council and staff can better prioritize future needs and balance them against limited resources.