Laserfiche WebLink
Memorandum <br />To: Sarah Cotton, City Administrator <br />From: Hannah Lynch, Finance Director <br />Date: January 12, 2021 <br />Re: Five -Year Financial Plan <br />Within the Lino Lakes City Charter is a provision to annually prepare a Five -Year Financial <br />Plan. While the city has not formally adopted a plan in recent years, other financial <br />planning documents have been kept up to date to aid in decision making. <br />Governmental activity capital asset replacement was formalized in a Capital Equipment <br />Plan and presented to Council in November 2020. The plan is a forecast of capital <br />equipment to be financed with a capital tax levy through fiscal year 2030. Revenue and <br />expenditure growth assumptions were included in the plan to provide for a forecast of the <br />overall tax levy and tax rate above and beyond the capital equipment needs. The plan <br />incorporates many strategic goals including: <br />• Flat tax rate <br />• Decreased debt <br />• Interest savings <br />• Financial and budgetary flexibility <br />• Efficient use of cash reserves <br />• Maintaining bond rating <br />The plan allows the city to evaluate potential opportunities and risks and operate more <br />proactively. As financial conditions change so can the plan. <br />Business activity capital asset replacement and general operations planning will be <br />addressed during the Utility Rate Study process in 2021. <br />