Management Report and Recommendations 12/31/1989

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City of Lino Lakes, Minnesota Management Report, Page 22 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 During 1988 and 1989, the City did not charge the various construction funds in accordance with the established policy. During 1989, the City transferred an administrative charge from the Comprehensive Trunk Watermain Construction Fund to the General Fund. It was unclear whether this charge included a 1% charge for aerial maps. 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. We recommend that the City Accountant charge the Construction Fund for the Aerial charge directly and transfer the aerial charge when the administrative charge transfer is made. We recommend that the City calculate the appropriate charge for 1989 and transfer such amounts in 1990. Our office is available to assist the City in establishing such procedures. During 1989, the City collected $5,500 for the sale of Aerial Maps.