Management Report and Recommendations 12/31/1989

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City of Lino Lakes, Minnesota Management Report, Page 32 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. The City has designated its allotment for the funding year 1989/1990 as follows: Alexander House $ 2,500 Senior Center Coordinator 4,500 Rise Inc. 2,500 Economic Development 17,037 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. The City intends to retire debt from the various connection and area charges. Careful 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.