Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota — Management Report, Page 34 — Community Development Block Grant The Community Development Block Grant (CDBG) Fund was established in 1982 to account for the financial activity related to the projects to be funded by the CDBG program. The City entered into an agreement with Anoka County to receive CDBG funds. The County of Anoka, along with other governmental units, were awarded the grant. The City of Lino Lakes is considered to be a sub - grantee and must comply with the provisions of the grant agreement. The City has determined the compliance procedures that are required to be documented in City records. Proper documentation with the grant agreement has aided the City in receiving the monies applied for in reimbursement of City expenditures. The CDBG allotments for 1982 to 1985 were appropriated for the Alexander House and the Senior Citizen Facility. Anoka County allocated additional CDBG amounts for the City in 1987 to — subsidize sewer improvements of low cost housing. The terms of the allotment are such that the City has paid CDBG proceeds to Debt Service Funds of the City to retire outstanding assessments. IIIMMI MIMI The City has designated its allotment for the funding year 1990/1991 as follows: Surface Water Management $ 15,298 Senior Center Coordinator 5,000 Rise Inc. 1,000 Community Action 3,200 Connection and Area Charge Fund On January 11, 1988 the City Council approved Resolution 1 -88 which established the Connection and Area Charge Fund for the City. The purpose of this fund is to collect various connection and area charges to be used to meet debt payments. Before October 1 of each year, the City will estimate the required transfer needed to meet debt payments for the subsequent year. In December, these estimated amounts shall be transferred to the various debt funds. The City has estimated scheduled connection and area assessments needed to meet debt requirements. We — recommend that the City monitor actual versus projected connection charge and area assessment collections to assure that debt payment requirements will be met. This fund will eventually account for connection charges and area assessments for funding of various debt issues. The City has amended collection procedures.