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IMMO <br />Honorable Mayor and Members of the City Council <br />City of Link Lakes <br />Page 17 <br />DEBT SERVICE FUNDS (Continued) <br />Schedule of Special Assessment Debt: <br />Special Assessment Debt: <br />Total resources $2,607,389 <br />Scheduled property tax levies 4,612,825 <br />7,220,214 <br />- Debt Service 17,625,025 <br />Deficit in scheduled funding (at 12/31/98) $ (10,404,811) <br />This deficit will need to funded by future adopted assessment rolls, special assessment levies, <br />investment earnings, transfers from other funds, property taxes or other means. <br />Factors to consider when analyzing debt service funds: <br />• Are all the anticipated assessment rolls being adopted as soon as appropriate? <br />• Have all the planned financing sources been identified, such as pledged amounts from the area and <br />unit fund or future MSA funds? <br />• Are there significant "prepayments" received from property owners? In the current investment <br />environment, will the earnings the City will receive on these prepayments be lower than the interest <br />rate that was being charged on the adopted assessment roll? <br />• Have the scheduled debt service payments been scheduled around the anticipated assessment <br />rolls in addition to any anticipated prepayments to avoid accumulating excess balances and <br />generating excess earnings that potentially could be subject to arbitrage? <br />We recommend that all Debt Service Funds of the City be reviewed at least annually by applying the <br />above criteria <br />