1991-003 Council Resolution - Laserfiche WebLink

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Council member Reinert introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NUMBER 3-91 RESOLUTION ADOPTING ESTABLISHING GENERAL FUND RESERVES AND/OR DESIGNATIONS WHEREAS, The City's auditors have, in their management report dated December 31, 1989, recommended that the City maintain an adequate level of fund balance in the General Fund in order to provide financial strength of the City, and WHEREAS, The Council recognizes that an adequate level of fund balance is necessary to provide for: 1. Cash flow requirements 2. Contingent employee benefit: compensated absences accrued sick leave 3. General contingencies and emergencies NOW THEREFORE BE IT RESOLVED, as a matter of City policy, that the following General Fund reserves/designations be established and maintained as far as practicable: 1. Cash Flow Reserve/Designation equal to one-half of the General Fund property tax levy plus anticipated State aids for the ensuing year. 2. Contingent Employee Benefit Reserve/Designation for compensated Absences and Accrued Sick Leave equal to amounts computed at each December 31st based upon existing City policy and generally accepted accounting principles. 3. General Contingency( including emergencies) Reserve/Designation equal to 15% of the City's General Fund Expenditures Budget for the ensuing year 4. Other Reserves/Designations may be deemed necessary to effect City Council Policy. BE IT FURTHER RESOLVED, that the Administration shall annually calculate the amounts of the above Reserves/Designations (based upon the above) and report such Reserves/Designations in the City's Annual Financial Report;