Management Report and Recommendations 12/31/1986

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City of Lino Lakes, Minnesota Management Report, Page 30 The policy (as implemented) requires one time transfers of administrative charges from the special assessment construction funds. However, the policy is unclear as to when the transfer for administrative charges should be made. We recommend the City clarify their position with respect to this policy (i.e., full transfer at completeness of project or start of project or annually based on percent of completion). Enterprise Fund The Enterprise Fund of the City of Lino Lakes financial statements are presented in the 1986 Annual Financial Report in Statements 16 through 18. Presented below are condensed comparative operating statements. Contributed depre- ciation has not been included in these presentations. For The Year Ended December 31, 1986 1985 Amount Percent Amount Percent Operating Income: Water billings $ 11,608 19.42% $ 7,640 14.94% Sewer billings 41,655 69.68 39,084 76.41 Other 4,676 7.82 4,428 8.65 Total operating income 57,939 96.92 51,152 100.00 Operating Expenses: Personal services 16,204 27.10 12,438 24.32 MWCC 28,272 47.29 25,954 50.74 Repairs and maintenance 5,313 8.89 3,061 5.98 Depreciation 984 1.65 984 1.92 Other 9,008 15.07 8,689 16.99 Total operating expenses 59,781 100.00 51,126 99.95 Income (Loss) From Operations (1,842) (3.08 %) 26 .05% Other Income /(Expenses): MWCC maintenance agreement Net Income /(Loss) 7,100 $ 5,258 8,305 $ 8,331 The operating results of the Water and Sewer Utility Fund increased by $5,000 from 1985. The increased revenue was primarily the result of increased connections to sewer and water. The City is currently reviewing water and sewer rates and is considering increasing rates in 1987.