Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota Management Report, Page 35 The City intends to retire debt from the various connection and area charges. Cardui 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 1990 Balance January 1, Current and December 31, 1990 Prepayments Delinquent Interest 1990 Revenue and other sources: Area and connection charges: Temporary Bonds of 1987 * $42,466 $11,711 $1,577 $344 $56,098 Temporary Bonds of 1988 142,930 75,814 5,930 1,229 225,903 Temporary Bonds of 1989 36,772 1,049,791 23,701 1,110,264 Total revenue and other sources 222,168 1,137,316 7,507 25,274 1,392,265 Expenditures and other uses: Professional services Transfer from Water and Sewer Net increase in fund balance 6,794 31,440 0 0 38,234 80,365 80,365 $215,374 $1,186,241 $7,507 $25,274 $1,434,396 * Pledged to the 1990B Temporary Improvement Bonds Designations of balances by bond issue and connection/area 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 connection charge portion of the assessment roll, however, is governed by the City's policy which was established by Resolution #1 -88. Such connection and area charges are contingently pledged to the related debt service fund in accordance with this policy. These amounts are to be segregated to the Connection and Area 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.