Management Report and Recommendations 12/31/1996

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City of Lino Lakes, Minnesota Management Report, Page 27 The transfers from the tax increment funds represent partial reimbursement for cost of the West Central Trunk sewer main which serves Rice Lake Estates (TIF 1 -1) and Sunrise Meadows (TIF 1 -2). Designations of balances required for debt service is necessary to define discretionary construction balances available to the City. The financing plan for the following bond issues have pledged area and unit charges for the repayment of debt service: Improvement Bonds of 1992A Improvement Bonds of 1996A Water Revenue Bonds of 1992B Water Revenue Bonds of 1996B The Improvement Bonds of 1992A have future scheduled property tax levies totaling $2,869,513. Revenue from area and unit charges are expected to be sufficient to cancel these levies. The Water Revenue Bonds of 1992B have future debt service requirements totaling $1,375,286 (principal and interest). The City annually transfers amounts from the Area and Unit Charge Fund to the Water Fund sufficient to cover the debt services of The Bonds of 1992B. During 1996 revenues were sufficient in the Water Fund to cover the debt service requirements and a transfer was not required. It is the City's intention to repay the Water Revenue Bonds of 1992B and 1996B with revenues of the Water Fund. If revenues are not sufficient to meet the debt requirements funds will be transferred from the Area and Unit Charge Fund. During 1996, the City transferred $1,858,933 to the Temporary Bonds of 1994 Debt Service Fund to prepay all bonds maturing after November 1, 1996.