Management Report and Recommendations 12/31/1986

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City of Lino Lakes, Minnesota Management Report, Page 22 Presented herewith, are projected financial positions of the various Special Assessment Debt Funds of the City (excluding the Temporary Improvement Bonds of 1985) based on scheduled future tax levies, future interest payable on bonds, and estimated future interest receivable on deferred assessments. Future interest on investments are not considered due to the uncertainties involved. Fund Scheduled Future Interest Projected Year of Position Future Add: Deduct: Fund Final Debt Service Fund 12/31/86 Tax Levies Assessments Bonds Position Maturity Improvement Bonds of 1977 $ 16,912 $ 285 $ 316 $ 16,881 1987 improvement Bonds of 1981 18,096 8,336 8,175 18,257 1991 Improvement Bonds of 1982 533,869 49,728 55,475 528,122(1) 1988 Improvement Bonds of 1983 15,636 34,691 25,650 24,677 1993 Improvement Bonds of 1984 (1,285) $ 284 9,756 10,919 (2,164) 1994 Improvement Bonds of 1986 (276,553) 105,314 74,012 96,580 (193,807)(1) 1993 Totals $ 306,675 $ 105,598 $ 176,808 $ 197,115 Total projected fund position Less: City property assessments included in projections Adjusted projected fund position Statutory reserve (5% of unmatured bond requirements) Excess projected fund position (1) Funds will be combined after call provision and retirement of all 1982 bonds. Projected balance (net) is $334,315 at December 31, 1986. 391,966 140,329 251,637 70, 100 $ 181, 537 The overall actual and projected fund positions of the Special Assessment Funds indicate that these bond funds are adequately financed at December 31, 1986. The reader should be cautioned that the above projected position is based upon fund balances and that these funds may experience cash overdraft balances due to timing of assessment collections (i.e., delinquencies). Improvement Bonds of 1977 The projected balance of $16,900 represents a $1,200 increase during 1986. This increase was primarily the result of interest on investments. We recommend that the City monitor the projected balance and develop a plan for the intended use of the balance available upon final payment in 1987.