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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 1994 Annual Financial Report. The following comments relate to the Combined
<br />Balance Sheet - All Funds (Statement 1).
<br />Cash and Investments
<br />_
<br />Cash and investments were as follows at December 31, 1993 and 1994:
<br />ti
<br />•
<br />Description
<br />Treasurer's balance - checking
<br />Petty cash
<br />Investments:
<br />Certificates of deposit
<br />Commercial paper
<br />FNMA pool
<br />NOW account
<br />GNMA
<br />Investment pools
<br />Federal Farm Credit Bank
<br />Federal Home Loan Mortgage Corp.
<br />Treasury Security
<br />Federal Home Loan Bank
<br />Student Loan Marketing Association
<br />Federal agriculture mortgage, discount notes
<br />Certificate of Indebtedness
<br />Totals
<br />December 31,
<br />1993 1994
<br />$1,909 $3,091
<br />150 300
<br />389,659
<br />1,347,997
<br />1,468,090
<br />596,553
<br />3,975,538
<br />500,000
<br />200,000
<br />2,604,485
<br />842,633
<br />Increase
<br />(Dec)
<br />$1,182
<br />150
<br />490,083 100,424
<br />795,339 (552,658)
<br />2,210,290 742,200
<br />26,700 (569,853)
<br />347,874 347,874
<br />3,067,529 (908,009)
<br />405,000 (95,000)
<br />1,439,255 1,239,255
<br />1,947,235 (657,250)
<br />450,000 450,000
<br />300,000 300,000
<br />- (842,633)
<br />150,000 150,000
<br />$11,927,014 $11,632,696 ($294,318)
<br />Interest on investments totaled $431,078 in 1994 and $615,011 in 1993. The increased
<br />earnings in 1993 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 />—
<br />interest earnings of the General Fund indicate that the City is maintaining operating reserves in this
<br />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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