Management Report and Recommendations 12/31/1988

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City of Lino Lakes, Minnesota Management Report, Page 16 The City's December 31, 1988 fund balance totaled $844,462. balance has been as follows for the past ten years: The City's General Fund Fund Balance (Deficit) Year Ended December 31, Designated 1979 $14,655 1980 18,766 1981 19,876 1982 46,466 1983 51,084 1984 116,770 1985 77,624 1986 83,714 1987 52,593 1988 96,626 or Cash flow timing differences. Expenditures are incurred somewhat evenly throughout the year. Property taxes & State aids are not received until the second half of the year. A reserve of one -half of such revenues is therefore recommended Or Capital outlay replacement. Internal escrow for purchases which may exceed amounts available in any single budget cycle. This may also be accomplished through tran- sfers to dedicated replacement funds. Undesignated $50,652 (19,730) 30,109 13,355 80,032 126,153 350,675 455,666 589,799 747,836 Increase (Decrease) in Undesignated ($597) (70,382) 49,839 (16,754) 66,677 46,121 224,522 104,991 134,133 158,037 .r Emergency or un. tticipated expenditures. Examples include natural disasters, law suits, comparable worth implementation and premature breakdown of vital equipment. Reasons for Reserves or Special City Council Projects. Preliminary studies, interfund loans and minor improvement projects are examples of reserve uses. Intergovernmental revenue cutbacks, The City is vulnerable to legislative actions at both the Federal & State level. The recent elimination of Revenue Sharing is one example. Annual analysis of Local Government Aid & Homestead Credit formulas is a constant threat.