Management Report and Recommendations 12/31/1987

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City of Lino Lakes, Minnesota Management Report, Page 18 The City increased the overall fund balance by $103,012 in 1987. A portion of the balance is committed to specific use (i.e., $52,593 is prepaid insurance). A graphic illustration of fund balance compared to expenditures and transfers out is as follows: $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $1,600 "=").- $1,500 $1,400 — $1,300 $1,200 $1,100 $1,000 $900 $800 $700 — $600 -- $500 1-• $400 $300 $200 $100 $0 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 0 Expenditures and Transfers '•' Fund Balance The City's minimum cash flow reserve requirement is measurable. For the City of Lino Lakes, the minimum required surplus is $630,975 computed as follows: 1988 Budgeted Levy (Includes Homestead Credit) 1988 Anticipated Local Government Aid $1,029,850 232,100 Total $1,261,950 Minimum Required Cash -Flow Reserve (One -Half of Total) $ 630,975 The City improved the financial position and undesignated reserve balance of the General Fund substantially in 1986 and 1987. This increase (plus incremental increases over the past several years) will allow the City to better manage the financial position of the General Fund.