Management Report and Recommendations 12/31/1986

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1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Lino Lakes, Minnesota Management Report, Page 24 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 Improvement Bonds of 1982 are adequately financed based on assets provided for payment of the bonds. The fund, however, is carrying assessments on City property totaling $129,819 for which payment terms have not been established (see previous comments). The City has advertised for bids on the sale of the City property in 1986 (see earlier commentary). There is also $177,800 of delinquent assessments receivable. The fund experienced a 1985 collection rate on current assessments receivable of 13% causing an increase in delinquent assessments of $86,000. The 1986 collection rate on current assessments receivable was 35 %. The fund does have future scheduled tax levies of $190,535. The City, however, cancelled the collectible 1985, 1986 and 1987 levies for this fund. The City should prepare projections on this fund to insure that adequate cash assets will be available on a timely basis to meet bond principal and interest payments as they become due. Improvement Bonds of 1983 The Improvement Bonds of 1983 have a positive projected balance of $24,677 at December 31, 1986. We recommend that the City monitor the results of this fund annually.