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City of Lino Lakes, Minnesota
<br />Management Report, Page 43
<br />The previous differences relate to bad debts within the City of Lino Lakes. The franchise
<br />agreement allows for adjustment from gross revenue of net bad debts. The City of Lino Lakes had
<br />bad debts of approximately $2,500 in 1991, $53 in 1990 and $3,400 in 1989. The City of Circle
<br />Pines reports such bad debts on a combined expense line "administrative - other ". We recommend
<br />the following:
<br />1. Request that Circle Pines provide their calculation of franchise fee remittances including
<br />bad debt adjustments.
<br />2. Review with Circle Pines their methods of enforcing collection and consider adopting
<br />such procedures within the City such as including significant outstanding delinquent
<br />billings on assessment search records.
<br />3. Annually update the following schedule to analyze fluctuation in revenue data.
<br />Residential
<br />Commercial Total
<br />Increase / (Decrease)
<br />Increase / (Decrease) Increase / (Decrease)
<br />Year Amount Amount Percent Amount Amount Percent Amount Amount Percent
<br />1981 $67,387 $16,526 $83,913
<br />1982 88,195 $20,808 30.88% 18,781 $2,255 13.65% 106,976 $23,063 27.48%
<br />1983 96,272 8,077 9.16% 22,478 3,697 19.68% 118,750 11,774 11.01%
<br />1984 97,007 735 0.76% 23,829 1,351 6.01% 120,836 2,086 1.76%
<br />1985 102,156 5,149 5.31% 29,356 5,527 23.19% 131,512 10,676 8.84%
<br />1986 90,407 (11,749) (11.50)% 24,764 (4,592) (15.64)% 115,171 (16,341) (12.43)%
<br />1987 82,787 (7,620) (8.43)% 19,866 (4,898) (19.78)% 102,653 (12,518) (10.87)%
<br />1988 114,883 32,096 38.77% 21,845 1,979 9.96% 136,728 34,075 33.19%
<br />1989 120,060 5,177 4.51% 21,303 (542) (2.48)% 141,363 4,635 3.39%
<br />1990 148,802 28,742 23.94% 17,669 (3,634) (17.06)% 166,471 25,108 17.76%
<br />1991 0.00% 0.00% 0 0.00%
<br />Bad Debts Interruptible Sales
<br />Increase / (Decrease) Increase / (Decrease)
<br />Year Amount Amount Percent Amount Amount Percent
<br />1981 $105,143
<br />1982 118,734 $13,591 12.93%
<br />1983 146,092 27,358 23.04%
<br />1984 155,626 9,534 6.53%
<br />1985 149,590 (6,036) (3.88)%
<br />1986 92,822 (56,768) (37.95)%
<br />1987 $3,334 $3,334 3.25% 88,509 (4,313) (4.65)%
<br />1988 2,757 (577) (17.31)% 83,363 (5,146) (5.81)%
<br />1989 3,394 637 23.10% 111,977 28,614 34.32%
<br />1990 53 (3,341) (98.44)% 108,699 (3,278) (2.93)%
<br />1991 0.00% 0.00%
<br />Prior to 1987, bad debts were netted with sales.
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