Management Report and Recommendations 12/31/1992

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City of Lino Lakes, Minnesota Management Report, Page 18 During 1992, the City transferred $3,172 to the EDA Fund from Tax Increment Financing — District Capital Project Funds 1 -1 and 1 -2. This transfer was made pursuant to MS 469.176 Subd. 3 for past and current year administrative expenses incurred in the EDA Fund. We recommend that the City continue to transfer funds from the Tax Increment Capital Project Funds to the EDA Fund for qualifying administrative expenditures on an annual basis. ■ DEBT SERVICE FUNDS The combining financial statements for the Debt Service Funds are presented in Statements 10 and 11 of the 1992 Annual Financial Report. Debt Service Funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than Enterprise Fund debt). Debt Service Funds may have one or a combination of the following revenue sources pledged to retire debt as follows: • Property Taxes. Primarily for general City benefit projects such as parks and municipal buildings. Property taxes may also be used to fund special assessment bonds which are not fully assessed. • Tax Increments. Pledged exclusively for tax increment/economic development districts. • Capitalized Interest Portion of Bond Proceeds. After the sale of bonds, the project — may not produce revenue (tax increments or special assessments) for a period of one to two years. Bonds are issued with this timing difference considered in the form of capitalized interest. • Special Assessments. Charges to benefited properties for various improvements. • Area and Unit Charges. In addition to the preceding pledged assets, other funding sources may be received by Debt -- Service Funds as follows: WPM • Residual Project Proceeds from the Capital Project Fund • Investment Earnings • State or Federal Grants • Transfers from Other Funds