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PUBLIC SAFETY During 2003, the staffing level was maintained at 17 sworn officers in the police department. The police department responded to 9,265 incidents in 2003, compared to 8,592 for 2002. For the two years, this activity is broken down into the following categories: 2003 2002 Traffic arrests 2,298 1,469 Motor vehicle accidents 455 389 Domestics /animal complaints /neighborhood complaints 6,457 6,658 Impounded animals 55 76 The police department experienced several changes in 2003. The first sergeant was promoted to a newly created position of captain. The corporal position was eliminated after the current corporal was promoted to sergeant and two new patrol officers joined the force replacing two vacant positions. The command structure of the police depai tment now consists of a chief, a captain, and three sergeants. The City received state and national honors for its National Night Out Program, for the fourth consecutive year. A three -day Safety Camp was started in 2002. The camp was conducted by the police and fire departments, with about 110 kids in attendance. The fire depai lment responded to 321 fire incidents, of which 106 were personal injury accidents. This compares to totals in 2002 of 318 and 103, 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 accounting principles generally accepted in the United States of America 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 depai tinent. 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 accounting principles generally accepted in the United States of America. 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 judgments by management. The City also maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. During the year, the City 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