Management Report and Recommendations 12/31/1992

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Vmm City of Lino Lakes, Minnesota Management Report, Page 12 Special assessments receivable on City property decreased by $132,043 during 1992. This was a result of the settlement of the Black Duck Estate litigation, the writing off of assessments on the City Hall property relating to the Main Street Project, and development of the Sunrise Meadows Subdivision. A summary of assessment collections for the past four years is as follows: Delinquent balance - January 1 1989 1990 1991 1992 $123,153 $161,751 $132,985 $126,088 Add: Current installment 326,516 245,618 351,941 379,521 Amount collectible 449,669 407,369 484,926 505,609 Less: Current collections 223,757 168,442 293,452 306,443 Delinquent collections 64,161 107,879 65,396 82,664 Total collections 287,918 276,321 358,848 389,107 Adjustments 0 1,937 10 2,188 Delinquent balance - December 31 $161,751 $132,985 $126,088 $118,690 Current collection rate 69% 69% 83% 81% Total collections as a percent of current levy 88% 113% 102% 103% The ability of the City to collect special assessments is vital to the financing of the Special Assessment Debt Service Funds of the City. The primary funding of debt payments is special assessments. Timely collection of special assessments is required to assure timely availability of cash to meet the scheduled debt payments. We recommend that the City monitor the collection rate and provide supplemental financing if assessment collections are not adequate to meet bonded debt payments.