Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota Management Report, Page 15 Due from Other Governmental Units Included in due from other governmental units are various Federal and State grants receivable that the City has earned as of December 31, 1990. The following schedule details these amounts. December 31, Description 1990 1989 State: MSA $33,422 $8,150 Federal: Community Development Block Grant 3,280 19,437 Local: Anoka County 23,803 19,955 MWCC - Maintenance Agreement 7,233 10,656 Final cost allocation 3,577 1,567 Circle Pines 57 1,118 Lexington 1071 Total $72,443 $60,883 Excluded from the above schedule is the gas franchise tax receivable which represents the City's share in the 1990 profits of the gas franchise operated by Circle Pines within the City of Lino Lakes. The amount is due each May following the year in which the amount is earned. As such, the payment is measurable but not available and therefore is recognized in the year received (see later comments). The receivable from the MWCC for maintenance was submitted for reimbursement subsequent to year end. The City may request this reimbursement earlier (in six month intervals) to accelerate the reimbursement process and improve the cash flow of the City. The City currently receives approximately $14,000 annually in MSA maintenance monies. The City also has available approximately $278,000 annually in MSA construction allotments. These construction allotments ordinarily can be used to finance construction costs relating to MSA designated streets. Unused construction allotments total approximately $613,900 at December 31, 1990. The City may be able to justify and request up to 25% of such annual total allotments for maintenance purposes (i.e., 25% of $278,000 or $69,500 per year). This could increase the total MSA receipts of the City during periods in which the City does not have qualifying MSA construction projects. Additionally, this option normally accelerates the receipt of MSA allotments. Once received, the City retains the option of internally allocating the receipts to construction funds as needed. We recommend that the City consider this option.