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City of Lino Lakes, Minnesota
<br />Management Report, Page 47
<br />1990 1989
<br />Residential and Commercial Revenue $166,471 @ 7% = $11,653 $141,363 @ 7% = $9,895
<br />Interruptible Service 108,699 @ 3% = 3,261 111,977 @ 3% = 3359
<br />Total $275,170 14,914 $253,340 13,254
<br />Remitted by Circle Pines 14,910 13,052
<br />Difference $4 $202
<br />The above 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 $53 in 1990, $3,400 in 1989 and $2,700 in 1988. 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 />Increase /(Decrease)
<br />Commercial Total
<br />Increase/ (Decrease) Increase / (Decrease)
<br />Yea Amount Amount Percent Amount Amount Percent Amount Amount Percent
<br />1981 $67,387 $16,526 $83,913
<br />1982 88,195 S20,808 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 5,149 531% 29,356 5,527 23.19% 131,512 10,676 8.84%
<br />1986 90,407 (11,749) (1150)% 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%
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