Management Report and Recommendations 12/31/1986

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City of Lino Lakes, Minnesota Management Report, Page 23 Improvement Bonds of 1980 The 1980 Special Assessment Bonds fully matured in 1986. The remaining balance (after final bond payment) can be transferred to another City fund at the discretion of the City Council. We recommend that the City plan for the use of this remaining balance. One option is to use this to establish a closed bond fund. This fund may be used to finance deficits of other Special Assessment Debt Service Funds or may be used to finance minor projects for which bonding is not cost effective. The monies in this type of fund are not restricted to transfer within the Special Assessment Fund type. The Council may elect to use the residual monies for any governmental purpose. We recommend that the City establish a Closed Bond Fund in 1987 and transfer the residual balances of the 1980 Bond Fund. During 1984, this fund experienced a collection rate on current assessments of 17% for the major assessment roll. This amounted to a $42,000 increase in delinquent assessments related to one major property owner. In 1985 this collection rate improved to 53 %. However, delinquent assessment now total $90,600. The 1986 collection rate was 35 %. However, during 1986, the City collected $22,000 of delinquent assessments. The fund has a cash deficit of nearly $40,000 at December 31, 1986. Improvement Bonds of 1981 The Improvement Bonds of 1981 have a positive projected balance of $18,250 at December 31, 1987. We recommend that the City monitor the results of this fund annually. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1