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City of Lino Lakes, Minnesota <br />Management Report <br />General Fund <br />G The City Charter could pose an obstacle in the event the City ever needed to access these <br />reserves. Charter sections 7.07 and 7.08 prevent making expenditures in excess of appropriations <br />and also prevents amendments which increase appropriations unless revenues are also increased. <br />Therefore, even though reserves are established, the Charter's budget restrictions could possibly <br />prevent the City from expending them if the needed expenditures were unbudgeted. See <br />comments on Page 63 regarding Charter issues. <br />A summary of the purposes and benefits of general fund reserve balances is as follows: <br />` <br />Favorable bond <br />rating indicator <br />Provides resources <br />for minor projects <br />or feasibility reports <br />Benefits of Reserves <br />Supplements revenues <br />with investment income <br />Provides the City <br />greater options to deal <br />with unexpected events <br />Avoids temporary <br />overdrafts prior <br />to major receipts <br />Avoids overburdening <br />of annual budgets for <br />certain capital outlay <br />I <br />Page 25 <br />