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City of Lino Lakes <br />Management Report, Page 37 <br />When bonds are sold in excess of actual expenditures, the unspent bond proceeds are <br />available in lieu of additional assessments. For this project, we were unable to locate <br />a tabulation of the above factors which totaled $45,000. <br />We recommend that the City review its assessment procedures and esta blish a method <br />of assessing which considers the above listed factors. <br />1 <br />1 <br />1 <br />Improvement Bonds of 1982 <br />In 1982, the City refinanced the Temporary Bonds of 1979 by issuing permanent bonds <br />in the amount of $750,000. The new issue was sold at a higher rate of interest than the <br />assessments which were pledged for repayment. Due to this situation, the City <br />reassessed the assessments at a higher rate to more closely match the new rate the City <br />incurred. We concur with this strategy and recommend that future assessment of projects <br />(prior to final bonding) include a provision to increase interest on assessment upon <br />securing permanent financing. <br />Lakes Addition #7 <br />Lakes Addition #7 has had the following transactions from inception: <br />1981 1982 Total <br />Miscellaneous $ 183 $ -0- $ 183 <br />Preliminary Construction Costs 22,099 668 22,767 <br />Fund deficit - December 31, 1982 $ (22,584) <br />The above deficit should be funded through a permanent bond sale to finance the <br />project. If the project is not ordered, the City may charge the developer directly <br />through a letter of credit arrangement. <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />F <br />1 <br />1 <br />