Management Report and Recommendations 12/31/1989

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City of Lino Lakes, Minnesota Management Report, Page 33 A schedule of transactions of this fund from inception is as follows: Prior 1989 1989 Yeas Collections Interest Total Revenue and other sources: Area and connection charges: Temporary Bonds of 1987 $24,747 $17,454 $265 $42,466 Temporary Bonds of 1988 140,792 2,138 142,930 Temporary Bonds of 1989 36,222 550 36,772 Total revenue and other sources 24 ,747 194,468 2,953 222,168 Expenditures and other uses: Professional services 0 6,794 0 6,794 Net increase in fund balance $24,747 $187,674 $2,953 215,374 Fund balance - January 1, 1988 0 Fund balance - December 31, 1989 $215,374 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. During 1989 the City amended its procedure relative to adoption of assessment rolls. The amended procedure requires the City split assessment rolls between the Area and Connection Fund and the related Debt Service Fund. During 1989, the City recertified the assessments for Erickson's Phase II relating to the 1987 Temporary Improvement Bonds. The assessments relating to Reshanau 2nd phase improvement