HomeMy WebLinkAbout1991-003 Council ResolutionCouncil 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;
BE IT ALSO FURTHER RESOLVED, that the City Council shall
periodically review its Reserve/Designation needs
and requirements and make such changes to this
policy statement as required to provide for the
financial strength of the City.
BE IT ALSO FURTHER RESOLVED, that the following resolution
will be effective as of Deceebe ' 31,199
1 (Z
Marijlyn %. Anderson, Clerk -Treasurer
Harold L. Bisel, Mayor
The motion for the adoption of the foregoing resolution was
duly seconded by Neal and upon vote being taken
thereon, the following voted in favor thereof: Neal, Kuether,
Bisel, Reinert.
The following voted against same: None, Council Member Bohjanen was absent.
Where upon said resolution was declared duly passed and
adopted: