06-23-1993 Additions - Laserfiche WebLink

Home Browse Search

City of Little Canada, Minnesota Management Report, Page 27 The City has demonstrated that a financially sound General Fund is attainable through prudent fiscal planning. The City has met its cash flow required reserve and also has other reserve balances. A summary of reserve components at December 31, 1989, 1990 and 1991 are as follows: December 31, 1989 1990 Specific Designations/Commitments: 1991 J Pat, payable on copy machine $1,375 Cash flow designation 572,000 5592,000 5592,000 Contingent employee benefits 37,600 48,900 60300 Agency receivables 100,000 100,000 Prepaid items/other 2,577 12,439 General contingency designation Computed/policy amount @ 15% 210,000 201,000 207,000 Shortage (63,615) (77,969) Total designations/commitments 5857.360 5866 508 5871.739 Balance of Reserve available for special Council order projects/studies, emergency expenditures, capital replacements and potential intergovernmental revenue cutbacks SO 523,656 The above reserves /designations are in accordance with the City Council Resolution No. 87- 10-477 establishing such reserves/designations. As shown above, the overall fund balance of the General Fund fell below the City's policy level at December 31, 1989 and 1990. This situation was corrected in 1991. The City of Little Canada has taken action over the past several years to (first) improvement and ( then) maintain the financial position of its General Fund. These actions have allowed the City to establish and maintain an appropriate General Fund reserve balance. Such a balance represents the financial health and integrity of the City and is considered a prime financial indicator by the City's bond rating agency. We congratulate the City on its past efforts and accomplishments and encourage continuation of such efforts. Page 6