Management Report and Recommendations 12/31/1984

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City of Lino Lakes, Minnesota Management Report, Page 8 A concept for the City to consider in the planning process for this fund is the ability to assess a portion of a project (based on lateral benefit) and to draw down full project costs for MSA. This practice is acceptable and allows the City to main- tain an MSA cash balance which is available for other MSA projects. The advantage of utilizing this system is that an equitable charge is made to property owners along the MSA route (which is comparable to what other property owners would pay) and the City increases the amount of cash available for other such improvements. The Community Development Block Grant receivable represents the amount of grant earned through the construction of the Senior Citizen Facility and for funding of the Alexander House (see later comments). The police contract receivable represents the fourth quarter of 1984 payment. Taxes Receivable Delinquent taxes receivable were as follows for 1982 through 1984: 1984 1983 1982 Delinquent balance - January 1 $ 84,603 $ 81,671 $ 44,254 Current levy Total receivable 690,000 587,845 544,842 774,603 669,516 589,096 Receipts: County: Current 467,696 380,063 332,566 Delinquent 33,045 34,223 23,750 State 187,721 170,627 139,283 Total receipts 688,462 584,913 495,599 Unadjusted balance Homestead credit loss 86,141 84,603 93,497 11,826 Delinquent balance $ 86,141 $ 84,603 $ 81,671 Total collections as a percent of current levy 100% 99% 91% In 1983 and 1984, the collection rates were much improved over the preceding years. Property taxes are a primary revenue source of the City. We recommend that the City monitor the collection rate for property taxes and prepare revenue operation budgets based on the expected delinquency rate.