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Ehlers outlines 3-month financial management plan to guide Crookston’s long-term budgeting
Summary
Todd Hagen of Ehlers told the council the financial management plan is a 10-year road map to evaluate the general fund, reserves, debt and project timing; the firm will work with staff and hold council workshops over roughly three months.
Todd Hagen of Ehlers briefed the Crookston City Council on the firm’s financial management plan (FMP), calling it "basically... a road map, 10 year look into the future of your general fund" and explaining it will inform funding strategies for operating and capital needs.
Hagen said the FMP will: examine three years of audits and current-year finances, review the 2025 budget and evaluate reserve policies; model options for bonding versus internal funding; and prioritize projects by timing and funding source. He described five scoring criteria Standard & Poor’s uses for credit assessments—economy, debt and liabilities, reserves/liquidity, financial performance, and management—each contributing about 20% of a rating assessment.
Hagen said the FMP will take about three months, begin with a staff kickoff and include interactions with staff and at least a couple of council work sessions. He advised the earlier the city moves on the FMP the better, and said the plan will provide a clear path "to determine appropriate funding sources, and project timing."
Council members asked about recommended reserve ranges and whether the council could amend existing reserve goals (for example, a 45% target referenced in previous council discussion). Hagen said state guidance roughly indicates 35–50% may be appropriate for cities of Crookston’s size and that the FMP will test whether the city is hitting those marks and whether reclassifying fund-balance buckets could help the city report stronger reserves for rating calls.
Hagen also discussed strategies for financing economic-development and street projects—including bonds, internal loans, and tax-increment/special-assessment approaches—and noted grants and local-option sales taxes are additional tools but carry legal and political constraints.
The council scheduled workshops and agreed to integrate staff into the FMP process. Hagen said Ehlers will provide options intended to be practical and to position Crookston for better long-term fiscal management and, if necessary, for improved bond market outcomes.
Next steps: staff will host a kickoff with Ehlers, share data and attend follow-up workshops; Ehlers will return options and modeling to the council within the planned three-month timeline.
