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City of Lino Lakes, Minnesota
<br />Management Report, Page 2
<br />ACCOUNT BALANCE ANALYSIS OF THE
<br />COMBINED FINANCIAL STATEMENTS
<br />The combined financial statements of the City of Lino Lakes are presented in Statements 1
<br />through 5 of the 1995 Annual Financial Report. The following comments relate to the Combined
<br />Balance Sheet - All Funds (Statement 1).
<br />Cash and Investments
<br />Cash and investments were as follows at December 31, 1994 and 1995:
<br />Description
<br />Treasurer's balance - checking
<br />Petty cash
<br />Investments:
<br />Certificates of deposit
<br />Commercial paper
<br />FNMA notes and mortgage backed securities
<br />NOW account
<br />GNMA
<br />Mutual funds
<br />Federal Farm Credit Bank
<br />Federal Home Loan Mortgage Corp.
<br />notes and mortgage backed securities
<br />Treasury notes and certificates of accrual
<br />Federal Home Loan Bank notes
<br />Student Loan Marketing Association notes
<br />Federal agriculture mortgage, discount notes
<br />Certificate of Indebtedness
<br />Totals
<br />December 31,
<br />1994 1995
<br />$3,091 $367,694
<br />300 400
<br />490,083
<br />795,339
<br />2,210,290
<br />26,700
<br />347,874
<br />3,067,529
<br />405,000
<br />1,439,255
<br />1,947,235
<br />450,000
<br />300,000
<br />Increase
<br />(Decrease)
<br />$364,603
<br />100
<br />482,160 (7,923)
<br />1,755,923 960,584
<br />2,299,797 89,507
<br />(26,700)
<br />(347,874)
<br />1,589,870 (1,477,659)
<br />200,000 (205,000)
<br />1,934,427 495,172
<br />1,678,121 (269,114)
<br />500,000 50,000
<br />100,000 (200,000)
<br />150,000 251,000 101,000
<br />$11,632,696 $11,159,392
<br />($473,304)
<br />Interest on investments totaled $575,116 in 1995 and $431,078 in 1994. The increased
<br />earnings in 1995 is the result of gains on the sale of U.S. Treasury zero - coupon investments. The
<br />ability of a city to generate investment earnings is an indication of sound fiscal management. The
<br />interest earnings of the General Fund indicate that the City is maintaining operating reserves in
<br />this fund. Operating reserves are mandatory to compensate for cash flow timing differences in the
<br />receipt of major revenue sources and for various other purposes as discussed later in this report
<br />(see "General Fund ").
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