Management Report and Recommendations 12/31/1988

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City of Lino Lakes, Minnesota Management Report, Page 36 During 1984, the City established a policy regarding administrative charges (Resolution #84- 4). The policy includes a "step down" administrative charge based on the size of the project. We concur with this approach and, in our opinion, the percentages used are reasonable and comparable to those used by other suburban metropolitan cities. The policy (as implemented) requires one time transfers of administrative charges from the special assessment construction funds. However, the policy was unclear as to when the transfer for administrative charges should be made. The Public Improvement Policy now clarifies this issue. The City engineer is to calculate the charge when the project is 85% - 100% complete. We recommend that the City record the charge when received from the City engineer. On January 11, 1988 the Lino Lakes City Council approved Resolution #2 -88 adopting the Lino Lakes Public Improvement Policy. The policy covers the following areas: • Financing of public improvements for existing developed areas pursuant to Minnesota Statutes Chapter 429. • Financing of public improvements in undeveloped areas. • City financed improvements - new subdivisions. • Developer- financed improvements. • Required public improvements. • Trunk sewer area and connection charges. • Trunk water main area and connection charges. • Special assessment procedures. We commend the City for the adoption of this policy and recommend the monitoring of procedures to assure that the policy is adhered to. Economic Development District #1 On January 26, 1987 the City established the Economic Development District #1. Within the District, the City established Housing District #1 -1. The housing plan calls for adequate numbers of low to moderate housing units pursuant to MS 273.73 subd. 11. The Housing District #1 -1 has anticipated projects/bonding requirements as follows: Planning and Improvements $974,094 Legal, Planning, Fiscal and Contingency 25,000 Capitalized Interest and Bond Discount 216,404 Estimated Bond Issue $1,215,498