Management Report and Recommendations 12/31/1988

Home Search

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Lino Lakes, Minnesota Management Report, Page 18 The City's minimum cash flow reserve requirement is measurable. For the City of Lino Lakes, the minimum required surplus is $739,000 computed as follows: 1989 Budgeted Levy (Includes Homestead Credit) $1,147,000 1989 Anticipated Local Government Aid 331,000 Total $1,478,000 Minimum Required Cash -Flow Reserve $739,000 The City had $844,462 of fund balance at December 31, 1988. This represents 114% of the above targeted cash flow required reserve. There is, therefore, approximately $105,000 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 Man Charges The City's General Fund incurred over $20,000 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, the City did not charge the various construction funds in accordance with the established policy. We recommend that the City calculate the appropriate charge for 1988 and transfer such amounts in 1989. Additionally, we recommend that the City establish a system whereby as the City's consulting engineer calculates assessment rolls, the City charges the appropriate construction fund in accordance with the policy. Our office is available to assist the City in establishing such procedures.