Management Report and Recommendations 12/31/1989

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City of Lino Lakes, Minnesota Management Report, Page 38 as development is completed and property values increase. Part of the process is to certify the tax increment financing district with Anoka County to freeze the original value of the district. Delays in certifying the district may have adverse affects on subsequent captured valuation formulas (i.e., if the original value goes up for interim improvements, the original value of the district will be higher, and therefore, the captured value which generates tax increments will be lower). We recommend that the City review procedures to assure timely certification of tax increment districts in accordance with financial projections. The City approved Tax Increment District #1-4 and certified it with the County in 1990. Interim Construction The Interim Construction Fund was established in 1985 to account for the preliminary construction costs prior to permanent bonding or other financing determination. The various projects accounted for in this fund are detailed in exhibit 4 of the 1989 Annual Financial Report. The fund balance of this fund was a deficit of $116,795 at December 31, 1989. We recommend the City review the status of the various projects in this fund and determine financing sources to eliminate the deficit of this fund. During 1989, the City received federal funding for the 80th Street project. We recommend that the City review the grant agreement for federal audit requirements (program audit, single audit). 1983 Construction The project consisted of installations of sewer service lines to the Baldwin Lake mobile home court. This project was financed by the $100,000 Improvement Bonds of 1983. The project was completed and assessed in 1983. The fund is carrying a liability to MWCC for sewer availability charges of $24,403. We recommend that the City remit this money to MWCC in 1990. This project was complete at December 31, 1986. We recommend that this fund be closed in 1990 to the Improvement Bonds of 1983 debt service fund. Council authorization is required to effect this closing.