Management Report and Recommendations 12/31/1987

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City of Lino Lakes, Minnesota Management Report, Page 24 governmental purpose. We recommend that the City consider establishing a Closed Bond Fund in-1988 and transfer the residual balances of the 1980 Bond Fund. This fund has experienced poor collection rates on assessments. Delinquent assessments relate to one major property owner. The fund therefore had a cash deficit of nearly $40,000 at December 31, 1986. In 1987, the City collected over $88,000 of delinquent assessments and substantial penalty and late payment charges. These collec- tions reversed the cash deficit situation. The cash balance of $74,833 is available for transfer as approved by the City Council. One option available is a transfer to the City's General Fund to further improve the reserve balance (see earlier comments). Improvement Bonds of 1982 The Improvement Bonds of 1982 were refinanced by the Improvement Bonds of 1986. Bonds maturing in the years 1989 through 1991, representing $375,000, were called on February 1, 1987. Upon final bond maturity in 1988, the remaining assets of this fund should be transferred to the Improvement Bonds of 1986. The City has received bids on the sale of the City property in 1986 (see earlier commentary). There were over $177,800 of delinquent assessments receivable at December 31, 1986 compared to $22,886 at December 31, 1987. The fund experienced a 1985 collection rate on current assessments receivable of 13% causing an increase in delinquent assessments of $86,000. The City recovered nearly $74,000 of such prior delinquencies. Additionally, $110,728 of prior delinquencies were reclassified to tax forfeit status. Temporary Improvement Bonds of 1985 The Temporary Improvement Bonds of 1985 were issued to finance Weber's Addition (Tomahawk Trail) and the Rice Lake Estates Addition. Final payment on these bonds is due November, 1988 at which time definitive bonds will be required. Weber Addition was