Management Report and Recommendations 12/31/1983

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City of Lino Lakes Management Report, Page 27 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. Special Assessment Funds The financial statements of the Special Assessment Funds are presented in Statements 14 and 15 of the 1983 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 financing primarily but can be realized 1 1 1 1 1 The nature of a Special Assessment - Debt Service Fund is such that it will not reflect a fund deficit. In a fund which would reflect a deficit an "amount to be provi- ded" is reported to increase the fund equity to zero. This "amount to be provided" is each funds' supplemental financing requirement. This supplementa will consist of future tax levies (scheduled and /or unscheduled) through future interest on investments, permanent transfers -in an d /or other City Council designated sources.