Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 23 The above fund deficit ($41,027) is the City share of expenditures to date. The total anticipated project funding is as follows: State $ 56,367 Federal 59,346 City 82,107 Total estimated project $ 197,820 The scope of the improvements may change if the beach part of the project has a silting problem. The completion of the grant (and the construction of the beach house) may be delayed pending the outcome of the beach improvement. The City has levied property taxes to fund a portion of its share ($30,000 levied for collection in 1982). These taxes are a part of the designated fund balance of the City's General Fund. A portion of this designation may be expended directly from the General Fund through "in kind" costs (i.e., administrative and other effort which meet certain grant criteria). As the City incurs expenditures, we recommend that the City annually fund the City share from the General Fund or other designated City sources (i.e., Parks and Playground Fund). Special Assessment Funds The financial statements of the Special Assessment Funds are presented in Statements 13 and 14 of the 1984 Annual Financial Report. A Special Assessment Fund is organized to account for both the construction and financing of assessable improvement projects. The accounting principles employed by the Special Assessment Fund - Debt Service Accounts are such that future interest on bonds payable is not reflected in the Balance Sheet until the year it becomes payable and future interest on special assessments is not reflected until the year it becomes receivable. Therefore, the financial position of these funds do not reflect future interest receivable or payable. Scheduled future tax levies are not reflected as income until the year of collection. In order to pro- ject the final fund surplus or shortage these three items must be considered. 1 1 1 1 1 1 1 1 1 1 1 1 1 1