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PUBLIC SAFETY During 2002, the staffing level was maintained at 17 sworn officers in the Police Department. The Department responded to 8,592 incidents in 2002, compared to 9,036 for 2001. For the two years, this activity is broken down into the following categories: 2002 2001 Traffic Arrests 1,469 1,227 Motor Vehicle Accidents 389 437 Domestics /Animal Complaints/Neighborhood Complaints 6,658 7,343 Impounded Animals 76 29 The Police Department experienced several changes in 2002. The Chief of Police retired after 28 years of service and the First Sergeant was promoted to Police Chief. An internal promotion moved a Corporal to a Sergeant Position, with the Corporal's position also being filled via an internal position. The City received State and National honors for its National Night Out Program. A three -day Safety Camp was started in 2002. The camp was conducted by the Police and Fire Departments, with about ninety kids in attendance. The Fire Department responded to 318 fire incidents, of which 103 were personal injury accidents. This compares to totals in 2001 of 320 and 97, respectively. Both the Police and Fire Departments are dispatched through the Anoka County Communications Center, which saves the community significant expense in operational costs. Police Department jailing is also handled by Anoka County, as is a portion of crime investigation. ACCOUNTING SYSTEM, INTERNAL, AND BUDGETARY CONTROLS The City's accounting system is organized and operated on a fund basis. Each fund or account group is a distinct, self - balancing accounting entity. The various funds and account groups utilized by the City are described in Note 1 of the financial statements. All funds are in conformity with U.S. generally accepted accounting principles applicable to governmental entities. Accounting and bookkeeping for all City activities are centralized under the Finance Department. The responsibility for financial records, maintaining internal controls, and preparing financial and budgetary reports is delegated to this department. Internal controls are designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate accounting data is compiled to allow for the presentation of financial statements in conformity with U.S. GAAP. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgements by management. The City also maintains budgetary controls of which the objective is to ensure compliance with Iegal provisions embodied in the annual appropriated budget as approved by the City Council. During the year, the Council may increase the budget, but only to the extent that additional revenues have been realized. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level for budgeted funds. The City Council also adopts a five -year Capital Improvement Program as a financial planning document. ix