Management Report and Recommendations 12/31/1991

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City of Lino Lakes, Minnesota Management Report, Page 29 The City intends to retire debt from the various area and unit charges. Careful monitoring of anticipated collections compared to actual is required to assure timely availability of monies to retire debt. Balances available after debt commitments are met can then be used for non - assessable system improvements. A schedule of transactions of this fund from inception is as follows: Balance 1991 Balance January 1, Current and December 31, 1991 Prepayments Delinquent Interest 1991 Revenue and other sources: Area and unit charges: Temporary Bonds of 1987 (1) $56,098 $2,226 $933 $2,980 $62,237 Temporary Bonds of 1988 (2) 225,903 18,118 9,902 12,768 266,691 Temporary Bonds of 1989 1,110,264 308,951 48,176 73,785 1,541,176 Temporary Bonds of 1990 32,988 1,658 34,646 Total revenue and other sources 1,392,265 362,283 59,011 91,191 1,904,750 Expenditures and other uses: Professional services 38,234 47,679 0 0 85,913 Transfer from 1989 construction 29,842 29,842 Transfer from Water and Sewer 80,365 52,320 132,685 Net increase in fund balance 1.4=1 434,396 $3 96 766 011 $ $1,981,364 (1) Pledged to the 1990B Temporary Improvement Bonds (2) Pledged to the 1991A Temporary Improvement Bonds Designations of balances by bond issue and area/unit charge type are required to monitor financing plan performance and to define discretionary construction balances available to the City. The accounting system and other such systems have been modified to achieve this result. The assessment portion which relates directly to current construction costs (lateral assessment charges) is pledged directly to the related debt service fund to retire outstanding bonds. The area and unit charge portion of the assessment roll, however, is governed by the City's policy which was established by Resolution #1 -88. Such area and unit charges are contingently pledged to the related debt service fund in accordance with this policy. These amounts are to be segregated to the Area and Unit Charge Fund and such amounts are transferred on an as needed basis to the related debt service fund. Any surplus accruing above the amount required to retire bonds will be available for expansion of the core water and sewer systems of the City.