Management Report and Recommendations 12/31/1983

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City of Lino Lakes Management Report, Page 29 Improvement Bonds of 1980 The projected fund position of $50,890 increased by $1,362 due primarily to interest earned on investments during 1983. Also, during 1982, this fund experienced a collection rate on current assessments of II 16 %. This amounted to a $48,000 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 is in a cash deficit of $23,800 at December 31, 1983. The City should also provide supplemental financing in the form of supplemental tax levies if determined to be necessary. Improvement Bonds of 1982 The Improvement Bonds of 1982 are adequately financed based on assets provided for payment of the bonds. The fund, however, is carrying assessments on City property totaling $122,500 for which payment terms have not been established (see previous comments). There is also $8,600 of tax forfeit assessments which have no payment terms and $74,000 of delinquent assessments receivable. The fund experienced a 1983 collection rate on current assessments receivable of 64 %. The fund does have future scheduled tax levies of $267,764. The City, however, cancelled the 1983/84 levy of $36,244. The City should prepare projections on this fund to insure that adequate cash assets II will be available on a timely basis to meet bond principal and interest payments as they become due.