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City of Lino Lakes, Minnesota
<br />Management Report, Page 12
<br />The City's December 31, 1993 fund balance totaled $1,756,659. The City's General Fund
<br />balance has been as follows for the past ten years:
<br />Fund Balance
<br />Reserved/
<br />December 31, Designated Undesignated Total Increase
<br />1984 $116,770 $126,153 $242,923
<br />1985 77,624 350,675 428,299 $185,376
<br />1986 83,714 455,666 539,380 111,081
<br />1987 52,593 589,799 642,392 103,012
<br />1988 96,626 747,836 844,462 202,070
<br />1989 53,290 976,763 1,030,053 185,591
<br />1990 1,169,624 0 1,169,624 139,571
<br />1991 1,265,236 0 1,265,236 95,612
<br />1992 1,406,296 0 1,406,296 141,060
<br />1993 1,756,659 0 1,756,659 350,363
<br />The increase in designated fund balance reflects the City's adoption of a reserve policy
<br />pursuant to resolution 91 -3. The reserve policy addresses three areas: 1) Cash flow requirements,
<br />2) Contingent employee benefits, and 3) General contingencies.
<br />The City's cash flow reserve requirement is computed as follows:
<br />1994 Budgeted Levy (Includes Homestead Credit)
<br />1994 Anticipated Local Government Aid
<br />Total
<br />$1,955,862
<br />145,445
<br />$2,101,307
<br />Cash -Flow Reserve (50% of total) $1,051,000
<br />The general contingency reserve is equal to 15% of the City's general fund expenditure budget
<br />for the ensuing year as follows:
<br />1994 budgeted expenditures $3,352,449
<br />Applicable percentage 15%
<br />General contingency reserve $502,867
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