Management Report and Recommendations 12/31/1982

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City of Lino Lakes Management Report, Page 35 Special Assessment Funds The financial statements of the Special Assessment Funds are presented in Statements 14 and 15 of the 1982 Annual Financial Report. A Special Assess g to account for both the construction and financing of assessable improvement projects. Lent Fund is or anized 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. 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 provided" is reported to increase the fund equity to zero. This "amount to be provided" is each funds' supplemental financing requirement. This supplemental financing pri- marily will consist of future tax levies (scheduled and/or unscheduled) but can be realized through future interest on investments, permanent transfers -in and /or other City Council designated sources. Presented herewith, are projected financial positions based on scheduled future tax levies, future interest payable on bonds, and estimated future interest receivable on deferred assessments. Future interest on investments are not considered due to the uncertainties involved. 1 1 1 1 1 1 1 1 1 1 1 F 1 1 1