Management Report and Recommendations 12/31/1986

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City of Lino Lakes, Minnesota Management Report, Page 25 Improvement Bonds of 1984 The Improvement Bonds of 1984 has a projected deficit of $2,164 at December 31, 1986. This projected deficit is the result of an under - assessment of the project as follows: Actual costs - December 31, 1986 $ 35,666 Capitalized interest -0- Total 35,666 Amount assessed 30,370 Difference $ 5,296 We recommend that the City review the financing of this fund and provide additional financing if required. 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 completed and assessed in 1985. Bids were requested for Rice Lake Estates in January, 1986. This project was assessed in 1986. We recommend that the City consider securing permanent financing for this temporary fund in 1987 if rates are favorable. Improvement Bonds of 1986 The Improvement Bonds of 1986 were issued to refinance the Improvement Bonds of 1982 and to finance the Sunset Road improvements. Upon final maturity of the 1982 Improvement Bonds, the remaining assets should be transferred to this fund. Special Assessment Fund Reporting National reporting standards have been amended regarding the financial statement presentation for special assessment funds. The City will be required to amend reporting procedures to comply with the new reporting standards.