Management Report and Recommendations 12/31/1986

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City of Lino Lakes, Minnesota Management Report, Page 10 As the above schedule shows, special assessment collection rates have fluctuated substantially over the past several years. The ability of the City to collect special assessments is vital to the financing of the Special Assessment Debt Service Funds of the City. The primary funding of debt payments is special assessments. Timely collec- tion of special assessments are required to assure timely availability of cash to meet the scheduled debt payments. If the City continues to experience high delinquency 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 $148,097 at December 31, 1986. 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 may not be fully recoverable. As such, we recommend that the City levy the portion of scheduled property taxes required to meet bonded debt payments. 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.