Management Report and Recommendations 12/31/1987

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City of Lino Lakes, Minnesota Management Report, Page 9 Property taxes are a primary revenue source of the City. The reduction in property taxes receivable represents an adjustment to County records. The County made this report available for 1987 for the first time. The prior receivable balance represented arrived at balances (levies minus collections). The adjustments, therefore, cover multiple years. The adjustments represent abatements, forfeits and other such property tax adjustments. In 1982 the State arbitrarily reduced homestead credits received by the City. No replacement aid was provided. The State proposes changes in tax credits annually. We recommend that the City continue efforts to monitor State financial legislation to react to adverse proposals on a timely basis. The City's collectible 1988 tax levy and budget reflects an under allocation of tax levies for debt as follows: Initial budgeted tax levy per Resolution 71 -87 Reserved for debt $ 1,146,850 48,000 Balance - General Fund $ 1,098,850 Second budget (adjusted for lower debt tax levy) Reserved for debt Balance - General Fund Third revised budget Reserved for debt $ 1,146,850 43,500 $ 1,103,350 $ 1,146,850 117,000 Balance - General Fund $ 1,029,850 The third revised budget is closer to the actual amount required for debt service, however, the allocation remains under the anticipated levies as follows: 1985 Certificates 1987 Certificates Total Authorized Per Third by Bond Revised Resolution Budget Difference $ 39,000 $ 39,000 $ -0- 87,428 78,000 (9,428) $ 126,428 $ 117,000 $ (9,428)