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City of Lino Lakes, Minnesota
<br />Management Report, Page 15
<br />The City's December 31, 1992 fund balance totaled $1,406,296. 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 />1983 $51,084 $80,032 $131,116
<br />1984 116,770 126,153 242,923 $111,807
<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 642392 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 />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 />1993 Budgeted Levy (Includes Homestead Credit) $1,776,369
<br />1993 Anticipated Local Government Aid 90,141
<br />Total $1,866,510
<br />Minimum Required Cash -Flow Reserve (50% of total) $933,255
<br />The general contingency reserve is equal to 15% of the City's General Fund expenditure
<br />budget for the ensuing year as follows:
<br />1993 budgeted expenditures
<br />$2,809,404
<br />15%
<br />$421,411
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