Management Report and Recommendations 12/31/1985

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City of Lino Lakes, Minnesota Management Report, Page 27 Improvement Bonds of 1982 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 fund does have future scheduled tax levies of $190,535. The City, however, cancelled the 1984/85 levy of $36,262 and the 1985/86 levy of $40,967. 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 $24,282 at December 31, 1985. We recommend that the City monitor the results of this fund annually. Improvement Bonds of 1984 The Improvement Bonds of 1984 has a projected deficit of $2,062 at December 31, 1985. This projected deficit is the result of an under- assessment of the project as follows: Actual costs - December 31, 1985 $ 35,400 Estimated additional costs 1,500 Capitalized interest -0- Total 36,900 Amount assessed 30,370 Difference $ 6,530 We recommend that the City review the financing of this fund and provide additional financing if required.