Management Report and Recommendations 12/31/1982

Home Search

1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Lino Lakes Management Report, Page 16 II Taxes Receivable The taxes receivable of $81,671 at December 31, 1982 represents amounts levied against property but not collected by the County and remitted to the City as of December 31, 1982. The balance of taxes receivable has been fully reserved and not recognized as revenue. This reserve is a change from prior years when delinquent taxes were con - sidered to be 100% collectible and recognized as revenue when levied. Current accounting standards require that property tax revenue be recognized when measurable and available to finance current expenditures. The amount is measurable but is not available to the. City to finance current operations. The effect of this change was to decrease the beginning fund balances of the City by $44,255 at January 1, 1982. This $44,255 will be recognized as revenue as the delinquent taxes are collected in future years. The amount of delinquent property tax collections has been as follows for the past several years: Percent of Amount Current and Current Levy Levied Delinquent Collections Collected 1979 $ 220,369 $ 218,402 99.1% 1980 287,689 280,543 97.5 1981 389,737 370,727 95.1 1982 544,842 507,426 91.0 IIIn 1982, the collection rate dropped by approximately 4 percent. This increased delinquency rate was not entirely caused by property owners. The State of Minnesota is delinquent on its portion of the certified levy (i.e. homestead credits). Certified levies are sent to the County each year for collection. The State portion of homestead credit is subtracted from the levy to be spread to property owners. The portion II subtracted for 1982, however, was not fully paid by the State. This reduced aid amounted to over $11,800 for the City of Lino Lakes. This amount is a permanent loss to the City.