Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 18 payments designed to correlate with assessment collections. The debt payments are fixed and will not change. If the City does not collect assessments on a timely basis, cash shortages in these funds may occur. We recommend that the City carefully monitor the delinquent collection rate and provide supplemental financing if assessment collections are not adequate to meet bonded debt payments. Deferred assessments receivable represent the balance of assessment rolls which will be spread for collection in 1983 through 1990. The amount of tax forfeit assessments receivable was $132,981 at December 31, 1982. These assessments are not currently being spread for collection. Most of these assessments relate to the Improvement Bonds of 1982. Should the City not collect these assessments, the financial position of the 1982 Improvement Bond Fund would be impaired. The bond resolution issuing permanent financing for this issue anticipated reduced reve- nue flows because of the tax forfeit situation. Deferred property tax levies were sche- duled in that resolution to offset the potential effects of tax forfeited assessments. We recommend that the City determine the status of this tax forfeiture and, if deemed necessary, initiate a review of the financing of the 1982 Improvement Bond Fund (see later comments) . The amount presented as "City Property" totaled $11,569 at December 31, 1982. The assessments on this parcel relate to a property which was acquired by the City in 1981. The City has the option of "paying" these assessments to the appropriate debt service fund from other City funds or it may cancel these assessments. 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 service 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