I went to the Alpine City Council meeting tonight.  Alpine City has some of the lowest taxes and lowest debt for cities in all of Utah County (they owe under 5 million dollars total).  I had heard that their City Council reviews the cities financial details regularly at their Council meetings, and I thought maybe we could learn something from them. 

I liked how multiple members on the Council asked sincere questions of those who were presenting information to them.  There was no sense of hostility, just a genuine interest in finding out information to make the best possible decisions.  I liked this free flow of information and the open atmosphere where dialogue could occur.

I didn't realize that Alpine City just recently had their credit rating upgraded two notches on their existing debt, from AA- to AA.  This unusual and positive result was said to be due to the strong cash balances the city maintains in various accounts.  The raters also liked that the city had a 5 year plan, both in general, and for specific accounts, with goals and steps laid out for achieving those goals.  Another factor mentioned in the credit rating upgrade was the cities relatively low debt.  

Someone at the meeting mentioned that Alpine City doesn't have any large shopping districts to provide a strong revenue source like many other cities have, yet they were still able to achieve a strong financial position (through fiscal discipline).  Their council did seem unified in their desire to have a fiscally sound city.  For example, one Council member asked questions of the City Manager about pension and retirement benefits.  It didn't seem like he was looking to cut benefits, rather he simply wanted to understand the cities liability for such benefits (perhaps to make sure those liabilities were adequately covered).  He mentioned that he had been reviewing the city of Stockton California (a financially troubled city) and wanted to make sure his city didn't face similar challenges.  Another Councilman inquired about the 7 million dollar cash balance on the balance sheet.  He clarified that he wasn't looking for 7 million to raid and spend, rather, he wanted to make clear that 7 million was spread out over several accounts to cover operating expenses, and should be left alone. 

I think the current American Fork City Council also wants to have a financially strong city.  Maybe there are some things that Alpine City is doing right that we can also do in American Fork City.