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of this tool and a broad overview discussion around if there are any "landmines," opportunities, red flags, and what the City can do with this tool. Finance Director Lund stated the City is required to issue this document and in a few weeks, there will be a bond rating call for the Equipment Certificates. The bonding agency will be looking at the amount of current debt and if there are sufficient reserves to pay off the debt should there be an emergency. Mayor Strommen commented on the importance of using this tool to look back and assure the City is in and remains in a good financial position during this and future budget cycles. Councilmember LeTourneau stated he would like Finance Director Lund to call out urgencies, potential risks, and have a conversation about how we use the CAFR as a tool. Finance Director Lund stated the largest expense is related to where the City spent its TIF dollars (Flaherty & Collins, parking ramp, and rail station). This is a true expenditure without a true asset being created that can be shown. Related to the debt, it is structured to show the same amount each year so the City knows the levy will be held constant unless additional debt is brought on. She stated this is a very detailed document. Mayor Strommen asked how the City can communicate it is in a healthy financial position, noting the levy and cash reserves over time could be used to show the City has been aware of the importance of maintaining a healthy financial position. She suggested staff pull out some of those trends as seen over time. She asked about the measures that can be pulled out of this report to convey what is meant by "healthy financial position." Finance Director Lund explained that the Governmental Fund pulls everything together. Mayor Strommen asked if we want to count all spending or pull out segments. She stated there is a need to do better job of explaining to the public the City's financial position and budgeting process. Finance Director Lund stated the public will focus more on the General Fund and reserves. City Administrator Ulrich suggested preparing a five -year projection of budget, debt, and enterprise funds, which will get to the point of looking ahead and back to determine financial stability. Chairperson Riley supported doing that for a five year term Finance Director Lund noted it will be impacted by road reconstruction because today you cannot levy so it falls under debt. Because of that, a decision is needed first on how road reconstruction will be funded. Mayor Strommen stated if there are projections, it would be a tool to help the Council in making that decision. Finance Committee / July 16, 2013 Page 3 of 6