Management Report and Recommendations 12/31/1996

Home Search

IMEr City of Lino Lakes, Minnesota Management Report, Page 28 The assessment portion which relates directly to current construction costs (lateral assessment charges) is pledged directly to the related debt service fund to retire outstanding bonds. The area and unit charge portion of the assessment roll, however, is governed by the City's policy which was established by Resolution #1 -88. Such area and unit charges are contingently pledged to the related debt service fund in accordance with this policy. These amounts are to be segregated to the Area and Unit Charge Fund and such amounts are transferred on an as needed basis to the related debt service fund. Any surplus accruing above the amount required to retire bonds will be available for expansion of the core water and sewer systems of the City. The 1996 bond proceeds are related to the 4th Avenue trunk utilities and the Cedar Street lift station projects. The MSA revenue is related to the TH49 and Lake Drive project which was financed by the Temporary Bonds of 1994. During 1996, the City implemented a new utility billing system which allows the area and unit charge to be recorded directly to the Area and Unit Fund. Prior to 1996, the charge was recorded in the Water Fund and transferred to the Area and Unit Fund. During 1989 the City amended its procedure relative to adoption of assessment rolls. The amended procedure requires that the City split assessment rolls between the Area and Unit Charge Fund and the related Debt Service Fund. Surface Water Management Fund This fund was established in 1989 to account for the financing of surface water management planning and storm sewer trunk lines. During 1990, the City levied its first assessments for surface water management charges. The cost of the plan will be financed by developer charges. The City is in the process of implementing items identified by the Surface Water Management Plan. Interim Construction The Interim Construction Fund was established in 1985 to account for the preliminary construction costs prior to permanent bonding or other financing determination. The fund balance of this fund was $16,223 at December 31, 1996. MSA Construction The MSA Construction Fund was established in 1990 to account for the collection of assessments on MSA projects in accordance with the City's Public Improvement Financing Policy. The fund balance of this fund was $54,798 at December 31, 1996.