Management Report and Recommendations 12/31/1990

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City of Lino Lakes, Minnesota Management Report, Page 50 • A more favorable revenue bond rate is probably available if the issue is "general obligation ". The City's charter may require a vote to pledge property taxes to the purchase of the system. • Dealings with the City of Circle Pines has the potential to be less than harmonious. Legal and accounting fees may, therefore, fluctuate significantly. • The City's accounting and billing computer system must be re- evaluated to determine if gas utility billings will be facilitated with the current system. -- • The City must determine the cost of additional equipment that must be purchased in addition to the Circle Pines system. • Evaluation of the adequacy of existing City staff to absorb all or a portion of the task awl associated with the gas utility. • The likelihood of voters to approve the acquisition. Vow • Gas purchase price and contract demand negotiations. • Probability of growth of the system. AGENCY FUNDS At December 31, 1990, the City had three Agency Funds as follows: • Contractor's Deposits • Investment Fund • Deferred Compensation An Agency Fund is designed to account for transactions for other individuals, private organizations and/or other funds. The Contractor's Deposits Fund is used to account for "pass through" types of expenditures relating to prospective developers. The City pays certain legal, engineering and planning amounts to assure compliance with various City ordinances relating to pertinent applications. The City receives deposits and/or bills the various developers for costs incurred. We recommend that the City continue to maintain detailed records of amounts due from developers and assure that adequate deposits are received prior to incurring expenses on a developer's behalf (see later comments).