Management Report and Recommendations 12/31/1982

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1 1 1 1 1 City of Lino Lakes Management Report, Page 28 The City should review General Fund reserve objectives and define what level of fund balance reserve is appropriate for the City of Lino Lakes. Once the amount is quantified, the City can maintain such reserves in future years through the use of unba- lances budgets (surplus versus deficit budgets). The General Fund balance currently totals $59,821. Most of that amount ($46,466), however, has been committed for ensuing years' expenditures. We recommend that the City address the issue of General Fund reserves and take action to achieve and maintain the desired levels through formal Council action and /or policy statements. Special Revenue Funds The financial statements of the Special Revenue Funds are presented in Statements 8 IIand 9 of the 1982 Annual Financial Report. A special revenue fund is a classification of funds to account for revenues segregated by City ordinance or Federal or State Statutes for specific purposes. The City maintained Federal Revenue Sharing in 1982 as the only Special Revenue Fund of the City. The fund balance of the Federal Revenue Sharing fund of $16,062 at December 31, 1982 consists of the fourth quarter allotment receivable ($7,363) and accumulated interest earned over the past years. The City has appropriated the 1983 entitlement to be transferred to the General Fund for police protection. 1 1 1 1 1 1 1 1 1 1 1 The rules and regulations of the Office of Revenue Sharing are considerable (and are subject to frequent change). Certain requirements deal with publications of notices. The City did meet all the publications requirements for 1982 with two exceptions. The City failed to publish the notices in the format required by the Office of Revenue Sharing for the proposed use hearing and the budget hearing. We recommend that the City continue to publish all required notices and monitor the notices to assure compliance with Revenue Sharing regulations.