Management Report and Recommendations 12/31/1983

Home Search

City of Lino Lakes Management Report, Page 10 As the above schedule shows, delinquent special assessments have increased substan- tially over the past year. The ability of the City to collect special assessments is vital to the financing of the Special Assessment Debt Service Funds of the City. The primary funding of debt payments is special assessments. Timely collection of special assessments are required to assure timely availability of cash to meet the scheduled debt payments. If the City continues to experience high delinquency rates, the funds which rely on assessments will be unable to meet scheduled bond maturities on a timely basis. We recommend that the City monitor the collection rate and provide supplemental financing if assessment collections are not adequate to meet bonded debt payments. The amount listed as "City property" totaled $122,524 at December 31, 1983. This amount has increased during 1983 as the City acquired additional properties which had gone tax forfeit in previous years, with assessments still remaining. The City acquired these properties in order to recover the assessments levied against these properties. The City has received clearance to permit development of these lots from various authorities (Army Corps of Engineers and State DNR). The City now intends to sell the properties and recover the related assessments. We recommend that the City determine if the amounts are fully recoverable and that interim financing continue to be provided through scheduled property taxes. When property is acquired with assessments receivable outstanding, the City should take action to pay or abate the assessments thereon. The decision to abate assessments should be made after reviewing the projected financial position of the related debt ser- vice fund. If the non - collection of these assessments has a material adverse effect on that fund's ability to make debt payments, then the City should take action to provide replacement financing. The amount of tax forfeit assessments receivable was $18,373 at December 31, 1983. These assessments are not currently being spread for collection.