Management Report and Recommendations 12/31/1983

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City of Lino Lakes Management Report, Page 13 Bonds Payable Balance - January 1, 1983 1983 Bond Issues 1983 Bonds Retired Balance - December 31, 1983 Bonds Payable Special General Assessments Debt $ 986,600 $ 55,700 Totals $ 1,042,300 100,000 100,000 51,320 55,700 107,020 $ 1,035,280 $ -0- $ 1,035,280 The bonds mature in 1983 through 1993. In 1983, the City sold the $100,000 G.O. Bond of 1983 to finance the Baldwin Lake Mobile Home Park Sewer Improvements. Scheduled bonded debt payments for all bonds including interest for 1984 is approximately $195,000. Detail of outstanding bond issues are contained in Exhibit 1 of the 1983 Annual Financial Report. A recent change in Federal legislation requires that municipal bonds be registered. Registration can be effected by a variety of methods depending upon the nature of the debt instrument. The objective of any system is to maintain a record of ownership. Any sale or transfer of ownership requires action by the named "registrar" to update ownership records. The City has issued the $100,000 General Obligation Improvement Bonds of 1983. The City has named itself as the registrar of record for this issue. As registrar (and paying agent), the City increases its responsibility for administration of the debt. The 1983 issue is a relatively small issue and consists of twenty bonds ($5,000 denominations). Additionally, the bondholder is a local bank. As such, the sales or transfers of the bonds is less likely and therefore the City may not be required to effect numerous transfer documents. Larger issues, however, may be designed to include an increased number of bonds and therefore a greater likelihood of periodic transfers. The cost /benefit factor of naming a third party registrar (versus assuming this respon- sibility internally) for larger issues should be carefully considered for any future (larger) bond issues.