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and proportionate to the cost of service. <br />Agencies should give adequate notice of <br />increases to allow local governments to <br />budget for the increases. State agencies <br />should set administrative service fees as <br />close as possible to the marginal cost of <br />providing the service. Local government <br />should be given the option to self- <br />administer or contract with the private <br />sector for the service if the state cannot <br />provide the service at a reasonable cost. <br />FF -6. Reporting Requirements <br />Issue: Budget and financial reporting <br />requirements imposed on cities by the state <br />often result in duplication and additional <br />costs. In addition to the state mandated <br />annual audits under Minn Stat. § 471.697- <br />.698, cities are required to prepare and <br />submit or publish numerous other budget <br />and financial reports including but not <br />limited to: <br />a) Summary budget reports (Minn. Stat. § <br />6.745); <br />b) Treasurers report to the city clerk (Minn. <br />Stat. § 412.141); <br />c) Statement of tax collections and other <br />income by clerk to the city council <br />(Minn. Stat. § 471.69); <br />d) Report on outstanding obligations and <br />the purpose for each issue filed with the <br />county auditor (Minn. Stat. § 471.70); <br />e) Publication of summary budget <br />statement (Minn Stat. § 471.6965); <br />f) Publication of statement of liquor store <br />operations (Minn. Stat. § 477A.017); <br />Liquor store audited financial statements <br />(Minn. Stat. § 471.6985); <br />h) TIF district plan and amendments (Minn. <br />Stat. § 469.175, subd. 4a); <br />i) TIF district annual disclosure (Minn. <br />Stat. § 469.175, subd. 5); <br />TIF district annual financial report <br />(Minn. Stat. § 469.175, subd. 6); <br />g) <br />j) <br />k) Business subsidy reporting (Minn Stat. <br />§ 116J.993 through 116J.995); <br />1) State required financial activity reports <br />(Minn. Stat. § 6.74); <br />m) Local improvement requirements (Minn <br />Stat. § 429.031); <br />n) Development and permit fees report <br />(Minn. Stat. § 326B.145); <br />o) Utility annual financial statements <br />(Minn. Stat. § 412.381); <br />Housing and redevelopment authority <br />annual financial report (Minn. Stat. § <br />469.013); and <br />Federal single audit or a program - <br />specific audit (31 U.S.C.A. § 7502 <br />(a)(1)). <br />p) <br />q) <br />Many cities have expanded the availability <br />of information on their web sites in response <br />to citizen requests and some cities have <br />begun using new tools to assist citizens in <br />understanding the city budget. Expanding <br />state mandated financial reporting <br />requirements could force cities to redirect <br />scarce resources to the state mandate and <br />stifle innovative ways to communicate with <br />citizens. <br />Response: Requirements for reporting <br />and advertising financial and budget <br />information should be carefully weighed <br />to balance the need for information with <br />the administrative costs of compiling and <br />submitting this information. In addition, <br />the legislature should direct all state <br />agencies to review existing local <br />government reporting mandates and <br />eliminate redundant or superfluous <br />requirements. To this point, the <br />legislature should consolidate municipal <br />government financial reporting <br />requirements in the Office of State <br />Auditor, include an electronic submission <br />alternative to any remaining paper filing <br />requirements and authorize the use of <br />web publication where newspaper <br />publication is currently required. <br />League of Minnesota Cities <br />2016 City Policies Page 97 <br />