Laserfiche WebLink
City of Lino Lakes, Minnesota <br />Management Report <br />Gas Utility <br />••• <br />GAS UTILITY <br />Portions of the City of Lino Lakes have gas service through a franchise agreement between <br />the City of Circle Pines and the City of Lino Lakes. The City of Circle Pines operates the gas <br />utility. <br />We have reviewed the initial distribution of gas franchise profits received by the City of <br />Lino Lakes under the terms of the franchise agreement. The revenue was calculated on the <br />following basis: <br />1996 1997 <br />Residential and Commercial Revenue $528,030 @ 7% = $36,962 $525,966 @ 7% _ $36,818 <br />Interruptible Service 158,455 @ 3% = 4,754 189,197 @ 3% = 5,676 <br />Total $686,485 41,716 $715,163 42,494 <br />Remitted by Circle Pines 41,726 42,495 <br />Difference <br />$10 $1 <br />The franchise agreement allows for adjustment from gross revenue of net bad debts. The <br />City of Lino Lakes had bad debts of $850 in 1996 and $6,777 in 1997. <br />a The receipt of franchise fees is recorded in the City's General Fund. The Gas Utility Fund <br />was established in anticipation of potentially establishing a gas utility. Successful negotiation of <br />a franchise fee agreement has prompted the City to abandon plans for their own gas utility. As <br />such, we recommend that the City consider closing the Gas Utility Fund. <br />