Laserfiche WebLink
' City of Lino Lakes <br />Management Report, Page 26 <br />IIofficials may be required to respond with a variety of techniques to replace lost <br />revenue. Some cities are now assessing street maintenance, others are reviewing rates <br />Iand structure of charges for all governmental services. <br />IIThe level of the fund balance of the City's General Fund is one indicator of the <br />financial strength or independence of a City. This often becomes critical during <br />IIperiods of high inflation, decreasing State aids, and poor economic growth. Without <br />IIadequate reserves, a City may be unable to respond to external factors such as State aid <br />cuts or even changes in the timing of these payments. With adequate reserves, these <br />IIexternal factors are more manageable by the City. <br />IIAn adequate fund balance for a City's General Fund is required for sound financial <br />management of the diversified services provided by a City. A City's General Fund is the <br />IIunofficial (and sometimes official) financial backer for all other City funds. <br />Inadequate funding of various special purpose activities (funds) places an implied <br />IIliability on the General Fund. <br />IITemporary cash overdrafts of certain funds must have offsetting cash balances in <br />IIother City funds to maintain an overall positive cash balance for a City. The General <br />Fund should maintain adequate cash balances to <br />maintain operations without experiencing <br />II cash overdrafts. The cash overdraft of the General Fund was in excess of $221,000 at <br />June 30, 1982. For 1982, the General Fund had a positive cash balance only in the month <br />1 of December. No local government aid will be available to the City until July for 1983 <br />IIand the first half tax allocation will also not be available until July, 1983. <br />I Currently, the City is not meeting the minimum required fund balance for the General <br />Fund. This minimum required fund balance is measured by the cash -flow needs of the <br />II General Fund. To measure this minimum cash -flow amount, the following criteria should <br />be applied: <br />II <br />1 <br />