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City of Lino Lakes, Minnesota
<br />Management Report, Page 12
<br />Special Assessments Receivable
<br />Special assessments receivable consisted of the following amounts at December 31, 1988 and
<br />1987:
<br />December 31, Increase
<br />1988 1987 (Decrease)
<br />Delinquent $123,153 $195,457 ($72,304)
<br />Deferred 1,636,158 1,646,410 ($10,252)
<br />City property 142,553 148,096 ($5,543)
<br />Tax forfeit 121,424 102,572 $18,852
<br />Due from County 49,649 $49,649
<br />Totals $2,072,937 $2,092,535 ($19,598)
<br />Delinquent assessments receivable consist of amounts collectible in 1988 and prior years which
<br />the City has not yet received. A summary of assessment collections for the past six years is as
<br />follows:
<br />1988 1987 1986 1985 1984 1983
<br />Delinquent balance - January 1 $189,606 $290,525 $271,588 $182,722 $123,970 $31,780
<br />Add
<br />Current installment 312,610 388,798 162,553 183,830 201,280 227,230
<br />Delinquent - previously not
<br />spread for collection 8,446
<br />Amount collectible 502,216 679,323 434,141 366,552 333,696 259,010
<br />Less:
<br />Current collections 204,150 194,196 78,980 63,292 124,395 123,535
<br />Delinquent collections 163,841 190,508 63,103 31,672 25,945 6,578
<br />Total collections 367,991 384,704 142,083 94,964 150,340 130,113
<br />Adjustments (11.072) (105.013) (1.533) (634) (4.927)
<br />Delinquent balance - December 31 $123,153 $189,606 $290,525 $271,588 $182,722 $123,970
<br />Total collections as a percent
<br />of cu rent levy 136% 99% 87% 52% 75% 57%
<br />As the above schedule shows, special assessment collection rates have fluctuated substantially
<br />over the past several years. The ability of the City to collect special assessments is vital to the
<br />financing of the Special Assessment Debt Service Funds of the City. The primary funding of debt
<br />payments is special assessments. Timely collection of special assessments are required to assure
<br />timely availability of cash to meet the scheduled debt payments. If the City continues to experience
<br />high delinquency rates, the funds which rely on assessments will be unable to meet scheduled
<br />bond maturities on a timely basis. We recommend that the City monitor the collection rate and
<br />provide supplemental financing if assessment collections are not adequate to meet bonded debt
<br />payments.
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