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Management Report and Recommendations 12/31/1999
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Management Report and Recommendations 12/31/1999
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Management Report and Recommendations
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12/31/1999
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- City of Lino Lakes, Minnesota <br />Page 7 <br />Reporting Model (continued) <br />• Limit the retroactive reporting requirements for infrastructure to major classes of infrastructure <br />assets. <br />• Define major classes of infrastructure as narrowly as possible. <br />• Limit infrastructure reporting to assets acquired during fiscal years ended after June 30, 1980. <br />• Use estimates whenever possible. <br />• Use composite approaches to calculate depreciation expense. <br />Levy Limits Expire <br />The levy limits currently in effect for pay 2000 were allowed to sunset beginning with taxes payable in <br />2001. While the levy limits have expired for 2001, many people in the industry believe that some form of <br />levy limits will be re- instituted in the near future. We recommend that the City carefully evaluate the <br />need to increase the levy. <br />Increases Required to Fund the PERA Coordinated Fund <br />- The Public Employees Retirement Association coordinated plan has reported that a significant, long- <br />term funding deficiency that will require as much as 30 percent increases in local government employer <br />and employee contributions. The Legislature plans to study the issue for action in the 2001 legislative <br />- session. The solution to the funding problem may include increases in the employer and employee <br />contribution rates in addition to changes in the membership eligibility threshold of PERA as well as <br />potentially increases in state. We recommend that the staff and Council monitor the progress of this <br />funding because of the potential budget impacts. <br />
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