Management Report and Recommendations 12/31/1994

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City of Lino Lakes, Minnesota Management Report, Page 24 The Temporary Bonds of 1994 were issued to finance The Country Lakes, Hodgson Road and Hwy 49 /CSAH 23 Improvements. The un- assessed costs of The Country Lakes and Hodgson Road Improvements (by approximately 10%) are expected to be financed by the Area and Unit Charge Fund. The un- assessed portion is estimated to be $85,000. 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. 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 City is currently working through a three phase surface water management plan. The cost of the plan will be financed by developer charges. 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 various projects accounted for in this fund are detailed in Exhibit 4 of the 1994 Annual Financial Report. The fund balance of this fund was a of $15,206 at December 31, 1994. 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 $49,367 at December 31, 1994.