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5 <br /> <br />The appropriated budget is prepared for the General Fund by function (e.g., public <br />safety), and department (e.g., police). Department heads may make transfers of <br />appropriations within a department with the approval of the City Manager. Transfers of <br />appropriations between departments, however, require the approval of the City Council. <br />Budget-to-actual comparisons are provided on Statement 10 as required supplementary <br />information to the basic financial statements for the governmental funds. <br /> <br />Factors Affecting Financial Condition <br /> <br />The information presented in the financial statements is perhaps best understood when it <br />is considered from the broader perspective of the specific environment within which the <br />City of New Brighton operates. <br /> <br />Local economy. The Minneapolis-St. Paul metropolitan area has continued to <br />experience a relatively stable economy. The market place for local products and services <br />remains strong. New Brighton is a fully developed city. However, continued long-term <br />growth is anticipated as New Brighton continues to aggressively pursue redevelopment <br />opportunities. <br /> <br />Long-term financial planning. The City maintains four internal service funds for the <br />replacement of various capital assets. The capitalization threshold for capital assets is <br />having a value of $ 5,000 or more and a useful life of at least two years. The <br />capitalization threshold for easements is $ 50,000. The Fleet Capital Replacement Fund <br />equipment. The Non-Fleet Capital Replacement Fund has been established for the <br />replacement of non-fleet capital items including miscellaneous equipment and <br />furnishings. The Pavement Management Fund was established to replace parking lots, <br />trails, tennis courts and hard courts. The Information Technology Fund has been <br />established to account for the operations of the city-wide computer network system and <br />the replacement of capital items such as computers, telephone systems, copiers, printers, <br />and various technology related items. <br /> <br />Relevant Financial Policies. The City of New Brighton has a Fund Balance Policy <br />requiring the fund balance of the General Fund to have a designated amount for cash <br />operating budget. The targeted designated amount is <br />service portion included, and 50% <br />operating budget. <br /> <br />Investment Policy states that the foremost investment objective is to preserve <br />capital. Secondary considerations are liquidity and lastly yield. Accordingly, deposits <br />are either insured by federal depository insurance or collateralized. All temporary cash <br />surpluses during the year are invested in various securities permitted by Minnesota <br />-all fiscal plan coordinated with operating needs and <br />programs projected over the ensuing 12 months. s was <br />0.99% in 2013.