Management Report and Recommendations 12/31/1985

Home Search

City of Lino Lakes, Minnesota Management Report, Page 11 rates, the funds which rely on assessments will be unable to meet scheduled bond maturi- ties on a timely basis. We recommend that the City monitor the collection rate and pro- vide supplemental financing if assessment collections are not adequate to meet bonded debt payments. The amount listed as "City property" totaled $129,819 at December 31, 1985. The City acquired these properties in order to recover the assessments levied against these properties. The City has received clearance to permit development of these lots from various authorities (Army Corps of Engineers and State DNR). The City intends to sell the properties and recover the related assessments in 1986. The City has deter- mined that the amounts are not fully recoverable. As such, we recommend that the City levy the portion of scheduled property taxes required to meet bonded debt payments. The City collects special assessments through Anoka County. This agency arrangement has advantages to the City primarily in saving administrative time and effort required to bill and collect special assessments. A certain level of control, however, is lost through the agency arrangement insofar as accounting records are located and maintained at both the County and the City. Correlation of these records is required to assure accurate tabulation of receivables and amounts received. In order to assure that the City's best interests are guarded, the City should improve internal records with regard to special assessments and compare such records periodically to County records. For 1985, the City accountant assisted audit personnel in reconciling such records. The above procedures will allow the City greater assurance that all of its special assessments are properly spread for collection. Additionally, the City will have the ability to generate year end balances for annual financial reporting with greater ease and accuracy. The increased level of control required is partially a function of increased assessment activity. Special assessments receivable (City -wide) was less than $100,000 in 1979. Assessments receivable were nearly $900,000 at December 31, 1985 and will exceed $2,000,000 after the Rice Lake Estates Project is assessed.