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City of Lino Lakes, Minnesota <br />Management Report, Page 17 <br />The amount of General Fund reserve required to meet emergency and/or unanticipated <br />expenditures is not readily quantifiable. Rather, the level of this requirement must be established <br />by the City based on the history of the City and the philosophy of "adequate" reserve coverage. <br />The reserve requirement to deal with unforeseen intergovernmental revenue reductions is also <br />difficult to quantify. State and Federal legislation dealing with shared aids is somewhat <br />unpredictable. The City must strive to remain current on the effects of changing legislation and <br />budget such aids accordingly. A reserve balance in the City's General Fund will mitigate the <br />adverse effects of aid reductions which are received after expenditure budget commitments are <br />made. <br />or Favorable bond rating indicator. <br />or City may study effects of <br />revenue cuts before gradual <br />program reductions. <br />Benefits of <br />Reserves <br />Avoids overburdening <br />of annual budgets for <br />certain capital outlay. <br />or Provides the City <br />greater options to deal <br />with unexpected events. <br />The City of Lino Lakes maintains reserve balances in other funds of the City for portions of the <br />above reserve components. <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />