Management Report and Recommendations 12/31/1985

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Moe City of Lino Lakes, Minnesota Management Report, Page 26 Improvement Bonds of 1977 The projected balance of $15,700 represents a $1,200 increase during 1985. This increase was a result of the following: Projected balance - January 1, 1985 Interest on investments Projected balance - December 31, 1985 $ 14,500 1,200 $ 15,700 We recommend that the City monitor the projected balance and develop a plan for the intended use of the balance available upon final payment in 1987. Improvement Bonds of 1980 The projected fund position of $43,200 decreased by $800 during 1985 as follows: Projected balance - January 1, 1985 Change in future interest on assessments Projected balance - December 31, 1985 $ 44,000 (800) $ 43,200 During 1984, this fund experienced a collection rate on current assessments of 17% Immo 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. We recommend that the City monitor this situation to insure timely availability of cash assets to meet bond prin- cipal and interest payments. The fund has a cash deficit of nearly $40,000 at December 31, 1985. The City should also provide supplemental financing in the form of supplemental tax levies if determined to be necessary. Improvement Bonds of 1981 The Improvement Bonds of 1981 have a positive projected balance of $17,875 at December 31, 1985. We recommend that the City monitor the results of this fund annually.