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City Administrator Ulrich agreed that is currently a gap and the Council needs to be aware of everything that is going on, including streets, so it is known what can be spent. Chairperson Riley stated the last ten pages of the CAFR are interesting as they present a ten -year history of taxes, spending, largest land owners and employers. He asked if there are ratios that the rating agency looks at. Finance Director Lund stated the rating agencies look at things like the City's proximity to the metropolitan area, economics of the City, amount of debt, reserves on hand, development and tax base, and number of foreclosures. She stated the focus is on what is happening with the economy because they do not want to over burden the tax payer. Finance Director Lund stated she can provide a copy of the Standards and Poors rating sheet. Mayor Strommen agreed the residents are interested in knowing about the City's financial stability. City Administrator Ulrich stated the Standards and Poors narrative can be used in a press release or upcoming City newsletter since it addresses debt and reserves and trends. Finance Director Lund stated the report is based on their telephone call to review the City's finances and development. Mayor Strommen stated the rating call will be in several weeks but next year there may not be such a call. She asked if staff can pull out those indicators from the CAFR. Finance Director Lund stated she will prepare a five -year projection as requested. City Administrator Ulrich stated communication to the public is important so an article addressing the City's financial position can be prepared for the September newsletter. He asked if that would do a good job of communicating or if a more timely communication should be considered. Chairperson Riley stated support for a once a year communication since the audit is completed once a year and suggested it be written in laymen's terms and provide more of a narrative indicating "the City's finances were deemed to be healthy." Councilmember LeTourneau suggested publishing the Standards and Poors report and including a simple narrative to explain what it means. 4.03: 2014 Preliminary Budgets Update Finance Director Lund explained that for 2014, the City is under levy limits, as reflected in the tax rates presented. The base increase in the levy is $129,000 over last year. The tax capacity rate (estimated) is 43.37% in comparison to 44.29% in 2013 because TIF 2 was decertified in 2013 to help the General Fund. The EDA levy has to fall within the levy limit of $7,482,518. Finance Committee / July 16, 2013 Page 4 of 6