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I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />Financi .\l Trends and C onditions of the Cm ’ of Orono <br />G eneral Funi » <br />The General Fund has continued to imprenc its financial posititm since 1989, and has a cash balance of <br />$1,344,283 and a fund balance of $1,430,558 at December 31, 1994. The General Fund's healthy <br />financial p<>sition has helped to suppiirt the growth of the operation and has provided positive cash flow. <br />A healthy fund balance al.so helps in the following ways: <br />o <br />o <br />0 <br />Avoid volatility in tax rates <br />Minimize the impart of state funding changes <br />Allows for adequate funding of sers ices. repairs, and unfore.seen costs <br />Can be a factor in determining the City ’s bond rating and its resulting costs of financing <br />The following graph illu.strates the financial trend over the past ten years. We have also included a <br />revenue line to reflect the change in the size of the General Fund operation over the same periixl. <br />General Fund Financial Position <br />Years Ended December 31 <br />3500 <br />•P.Fund balance Cash balance Revenue <br />The significant drt»p in cash and fund balance in 1989 reflects the planned transfer of funds to finance <br />a portion of the City facilities' construction. These monies were previously accumulated in the General <br />Fund until the Capital Project Fund was established for the pr*>ject. <br />4-