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tow <br />Inr <br />City of Lino Lakes, Minnesota <br />Management Report, Page 20 <br />Deferred revenue of the preceding schedule primarily consists of uncollected special <br />assessments. The preceding schedule compares outstanding debt with: 1) fund balance; and, 2) <br />deferred revenue. <br />Debt Service Funds should be evaluated at least annually. The following chart summarizes <br />steps to consider: <br />Condition A <br />Cautions <br />E1. Is the City experiencing favorable <br />collection rates for special assess- <br />ments? <br />2. Are anticipated investment interest <br />rates eamed on prepayments ade- <br />quate to replace assessment interest? <br />3. Is the timing of receipts sufficient to <br />meet bonded debt payments as <br />- they become due? <br />4. Are significant portions of assess- <br />ments not scheduled for collection <br />(green acres, tax forfeit,etc.)? <br />5. Ls arbitrage or negative arbitrage <br />an issue? <br />law <br />WNW <br />The debt service fund <br />is clearly adequately <br />funded. Plan for eventual <br />use of surplus. <br />Conclusion 1 <br />Condition B <br />1. Are sufficient future assets <br />scheduled (such as property taxes) <br />to meet bonded debt payments? <br />2. Are cash assets sufficient to <br />generate investment earnings? <br />3. Are transfers or other funding <br />sources available? <br />4. Are there future assets to pledge <br />such as assessments, MSA allot- <br />ments, etc <br />The debt service fund <br />is clearly II9t adequately <br />funded. Plan for altern- <br />ative funding (taxes, <br />transfers, other sources). <br />Conclusion 2 <br />Variables and possible <br />outcomes are too diverse. <br />Prepare projections to <br />analyze possible <br />scenarios and options. <br />Conclusion 3 <br />