Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 25 Improvement Bonds of 1977 The projected balance of $14,500 represents a $1,800 increase during 1984. This decrease was a result of the following: Projected balance - January 1, 1984 Change in future interest on assessments Interest on investments $ 12,700 (100) 1,900 Projected balance - December 31, 1984 $ 14,500 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 $44,000 decreased by $6,900 during 1984 as follows: Projected balance - January 1, 1984 Change in future interest on assessments Special assessment adjustments $ 50,900 (2,300) (4,600) Projected balance - December 31, 1984 $ 44,000 The special assessment adjustments were for the correcting of an error related to County correlation with City records (see earlier commentary under "Special Assessments "). During 1984, this fund experienced a collection rate on current assessments of 17% for the major assessment roll. This amounted to a $42,000 increase in delinquent assessments related to one major property owner. We recommend that the City monitor this situation to insure timely availability of cash assets to meet bond principal and interest payments. The fund has a cash deficit of $47,300 at December 31, 1984. The City should also provide supplemental financing in the form of supplemental tax levies if determined to be necessary.