Management Report and Recommendations 12/31/1988

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City of Lino Lakes, Minnesota Management Report, Page 28 4th Avenue The 4th Avenue Project was funded primarily from MSA allotments. A portion of the project was assessed in 1987. This project was bonded in 1987. We recommend that the City transfer the remaining balance of $5,431 to the related Debt Service Fund in 1989. 80th Street The 80th Street Fund was established in 1987 and will be financed by the State for the construction of the bridge and Anoka County for construction of the road. The City will pay for engineering and other minor costs. The deficit of $18,563 at December 31, 1988 and future expenditures require a City funding source. The primary funding source for the City will be a reimbursement agreement with the State Department of Transportation. The City is scheduled to be reimbursed based on the following schedule: City share $7,644 State share 74,517 Total $82,161 The City has already incurred $18,500 in preliminary costs. We recommend that the City 1) project City costs including the amount to be paid to Anoka County pursuant to the joint powers agreement, 2) determine potential additional liability if cost overruns are incurred and 3) require favorable cash flow terms relative to receipts from the State and payments to Anoka County. Rice Lakes Estates Addition The City began this project in 1985. The project was funded by the Temporary Improvement bonds of 1985 which were subsequently permanently financed by the 1988 Improvement Bonds. The project was scheduled for completion in 1987. The City has retained this fund because final street overlays were not complete at December 31, 1988 (see later comments) . We recommend that this fund be closed to the 1988 Improvement Bonds Fund after final completion of construction. North Road This fund was established in 1986 to account for North Road Improvements. This project was financed by the Temporary Improvement Bonds of 1985 which were subsequently permanently