Management Report and Recommendations 12/31/1987

Home Search

City of Lino Lakes, Minnesota Management Report, Page 12 rates, the funds which rely on assessments will be unable to meet scheduled bond maturi- ties on a timely basis. We recommend that the City monitor the collection rate and pro- vide supplemental financing if assessment collections are not adequate to meet bonded debt payments. The amount listed as "City property" totaled $148,096 at December 31, 1987. The City acquired these properties in order to recover the assessments levied against these properties. The City has received clearance to permit development of these lots from various authorities (Army Corps of Engineers and State DNR). The City intends to sell the properties and recover the related assessments. The City has determined that the amounts will not be fully recoverable. The City has received bids on the property and is currently litigating a settlement. The City collects special assessments through Anoka County. This agency arrangement has advantages to the City primarily in saving administrative time and effort required to bill and collect special assessments. A certain level of control, however, is lost through the agency arrangement insofar as accounting records are located and maintained at both the County and the City. Correlation of these records is required to assure accurate tabulation of receivables and amounts received. In order to assure that the City's best interests are guarded, the City should improve internal records with regard to special assessments and compare such records periodically to County records. Additionally, Anoka County is not providing detail of penalty and interest on delinquent collections. In light of the magnitude of past delinquencies, this allocation should be provided (penalties and late charges totaled over $75,000 for the City in 1987). Estimated allocations were made for these amounts for 1987. We recommend that the City request improved data from the County.