Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota Management Report, Page 25 The City's minimum cash flow reserve requirement is measurable. For the City of Lino Lakes, the minimum required surplus is $824,523 computed as follows: 1991 Budgeted Levy (Includes Homestead Credit) $1,485,621 1991 Anticipated Local Government Aid 163,425 Total $1,649,046 Minimum Required Cash -Flow Reserve $824,523 The City had $1,169,624 of fund balance at December 31, 1990. This represents 142% of the above targeted cash flow required reserve. There is, therefore, approximately $345,000 available for other reserve requirements of the City. Without adequate General Fund reserve, the independence and autonomy of the City may be impaired. The City of Lino Lakes has taken actions over the past several years to improve the financial position of its General Fund. We commend the City for these actions and encourage the City to continue to monitor this reserve balance. An adequate reserve structure will enable the City to retain its financial independence and integrity during adverse economic conditions. Aerial Map Charges The City's General Fund incurred over $20,000 of costs for aerial maps in 1987. The maps are required for water management purposes and to assist in development. On January 28, 1988, the City established a system to recover the costs of the maps. The City will charge as follows: • Sale of Maps: 1st one -half sheet = $50.00 • Sale of Maps: Additional one -half sheet = $5.00 • Per Acre Plat Charge: $10.00 • Construction Funds: 1% of construction costs Appendix A of the City's Public Improvement Financing Policy requires the City Engineer after a project is 85% to 100% completed to prepare a project cost summary. The project cost summary includes aerial photo cost recovery charges. During 1990 the City charged the following projects aerial map charges, D. Erickson 2nd Phase 1, D. Erickson Phase 2, Reshanau Phase 2A, Reshanau Phase 2B, Sunrise Meadows, and Woodridge Estates in accordance with the City's Public Improvement Financing Policy. We recommend that the City Accountant continue to charge the Construction Funds for the aerial charge directly and transfer the aerial charge when the administrative charge transfer is made. During 1990, the City collected $2,700 for the sale of Aerial Maps.