HomeMy WebLinkAboutCAFR-2002COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 2002
Prepared by
THE DEPARTMENT OF FINANCE
(Member of 'Government Finance Officers
Association of the United States and Canada)
1
City of Brook yn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2002
TABLE OF CONTENTS
I. FINANCIAL SECTION
Independent Auditors' Report 15-16
A. General Purpose Financial Statements
Exhibit Page
(Combined Statements Overview
Number Number
1. INTRODUCTORY SECTION
Title Page
l
Tab a of Contents
ii A
City Officia s
1
Organization chart
2
City Manager's Letter
3
Letter of Transmittal
4-13
Certificate of Achievement
14
I. FINANCIAL SECTION
Independent Auditors' Report 15-16
A. General Purpose Financial Statements
(Combined Statements Overview
17
Combined Balance Sheet A Fund Types and
Account Groups
1 18-19
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances All Governmental
Fund Types
2 20
Combined Statement of Revenues, Expenditures and
Changes in Fund Ba ances Budget And Actual
General and Special Revenue Funds
3 21
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings Proprietary
Fund Types
4 22
Combined Statement of cash Flows
Proprietary Fund Types
5 23
Notes to Financia Statements 24-49
City of Brooklyn Center, Minnesota-
COMPREHENSIVE ANNUAL F NANCIAL REPORT
Year Ended December 31 2002
TABLE OF CONTENTS
Statement/
Schedule Page
Number Nun iber
B. Combining, Individual Fund and Account Group
Financial Statements and Schedules:
Genera Fund:
Comparative Balance Sheet
A -1 51
Comparative Statement of Revenues,
Expenditures and Changes in Fund
Balance Budget and Actua
A -2 52
Schedu a of Revenues other Financing
Sources Budget and Actual
S -1 53-54
Schedu a of Expenditures other
S -2 55-59
Financing Uses Budget and Actual
Specia Revenue Funds:
Combining Balance Sheet
B-1 61-62
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances
B-2 63-64
Statement of Revenues, Expenditures and
Changes in' Fund Balance Budget and Actual
Hous -ing and Redevelopment Authority Fund
B -3 65
Statement of Revenues, Expenditures and.
Changes in Fund Balance Budget and Actua
Economic Development Authority Fund
B -4 66
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Ear a Brown Tax Increment Financing District Fund
B -5 67
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Tax Increment District No. 3 Fund
B -6 68
City of Brook yn center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2002
TABLE OF CONTENTS
iv
Statement/
Schedule
Page
Number
Number
Statement of Revenues, Expenditures and
Changes in Fund Ba ance Budget and Actua
Tax ncrement District No. 4 Fund
B -7
59
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Police Drug Forfeiture Fund
B -8
70
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Community Deve opment Block Grant Fund
B -9
71
Statement of Revenues, Expenditures and
Changes in Fund Ba ance Budget and Actual
City Initiatives Grant Fund
B-10
72
Debt Service Funds:
Combining Balance sheet
C -1
74
Combining Statement of Revenues, Expenditures
and changes in Fund Balances
C -2
75
Capital Projects Funds:
Combining Ba ance Sheet
D -1
77
Combining Statement of Revenues, Expenditures
and changes in Fund Ba ances
D -2
78
Enterprise Funds:
Combining Balance sheet
E -1
80-81
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
E -2
82-83
Combining Statement of cash Flows
E -3
84-85
Internal Service Funds:
Combining Balance Sheet
F -1
87
iv
City of Brook yn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2002
TABLE OF CONTENTS
Statement/
Schedule
Page
Number
Number
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings
F -2
88
combining Statement of Cash Flows
F -3
89
General Fixed Asset Account Group:
Schedule of changes in General Fixed Assets
by Source
S -8
91
Schedu a of Genera Fixed Assets
by Function and Activity
S -7
92
Schedule of Changes in General Fixed Assets
by Function and Activity
S -8
93
Genera Long -Term Debt Account croup:
Comparative Statement of General
Long -Term Debt
G
98
Summary of Debt Service Requirements
to Maturity
H
98
II I. STAT STICAL SECT ON
Table
Page
Number
Number
General Governmental Expenditures by Function
1
98
General Governmental Revenues and other
Financing Sources by Source
2
99
Tax Levies and Tax Collections
3
100
Assessed Value and Estimated Market Value of A I
Taxable Property
4
101
Direct and Overlapping Tax Rates and Tax Levies
5
102
Special Assessment Billings and Collections
8
103
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita
7
104
v
City of Brooklyn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2002
TABLE OF CONTENTS
Computation of Legal Debt Margin
Computation of Direct and overlapping Debt
Ratio of Annua Debt Service Expenditures for
Genera Bonded Debt to Total General Fund
Expenditures
Schedule of Revenue Bond Coverage
Property Value and Construction
Principal Taxpayers
Schedule of nsurance Coverage
Demographic Statistics
Misce aneous Statistica Facts
Tab e
Page
Number
Number
8
105
9
106
10
107
11
108
12
109
13
110
14
111 -112
15
113
10
114 -115
A
City of Brooklyn Center, Minnesota
PRINCIPAL OFFICIALS
For the Year Ended December 31, 2002
Mayor Myrna Kragness
Councilmember Kathleen Carmody
Councilmember Kay Lasman
Councilmember Diane Niesen
Councilmember Robert Peppe
Term of office Term Expires
Four Years 12/3112006
Four Years
1213112006
Four Years
1213112004
Four Years
12/31/2006
Four Years
12/31/2004
City Manager, Michael J. McCauley
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City of Brooklyn Center
A Millennium Community
June 2, 2003
HONORABLE MAYOR AND MEMBERS OF C TY COUNC L
C TY OF BROOKLYN CENTER
hereby transmit the Comprehensive Annua Financia Report of the City of Brook yn
Center for the fisca year ended December 31 j 2002. Minnesota Statutes and City Charter,
Section 7.12, require that the financia statements of the City of Brooklyn Center be audited
by the State Auditor or a certified pubic accountant se acted by the City Counc This
requirement has been complied with by the engagement of the -firm of HLB Tautges
Redpath, Ltd. and their report is inc uded in the financia section of this report.
This report has been prepared fo owing the guide fines recommended by the Government
Finance Officers Association of the United States and Canada. The Government Finance
Officers Association awards Certificates of Achievement for Exce ence in Financial
Reporting to those governments whose Comprehensive Annual Financial Reports are
judged to conform substantia y with high standards of public financial reporting, including
generally accepted accounting principles promulgated by the Governmental Accounting
Standards Board. Our financia reports for the past nineteen years have received this
award. It is my belief that the accompanying report meets program standards, and it will be
submitted to the Government Finance Officers Association for review.
Respe y s..
Michael J. Mc
City Manager
6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number
Brooklyn Venter, MN 55430 -2199 (763) 569 -3400
City Ball TDD Number (763) 569 -3340 FAX (763) 569 -3434
FAX 763 569-3494 3
3 E7 City of Brooklyn Center
A Millennium Community
June 2, 2003
Mr. Michael J. McCau ey
City Manager
City of Brook yn Center
Dear Mr. McCauley:
The comprehensive annual financial report of the City of Brooklyn Center (the City) for the
fiscal year ended December 31, 2002 is hereby submitted. Responsibility for both the
accuracy of the data and the comp eteness and fairness of the presentation, inc uding a
disc osu res, rests with the City. To the best of our knowledge and be ief, the enc osed data
are accurate in all materia respects and are reported in a manner designed to present
fairly the financial position, results of operations and cash flows of the various funds and
account groups of the City. All disclosures necessary to enab a the reader to gain an
understanding of the government's financia activities have been included.
The comprehensive annual financial report is presented in three sections: introductory,
financia, and statistical. Included in the introductory section is this transmittal letter, the
government's organizational chart and a ist of principa officia s. The financia section
inc udes the general purpose financia statements and the combining and individua fund
and account group financial statements and schedu es, as we as the independent
auditors' report on the general purpose financial statements. The statistical section
includes selected financial and demographic information, generally presented on a multi
year basis.
The City is required to comply with the provisions of the Single Audit Act Amendments of
1 990 and the U.S. office of Management and Budget circular A -133, "Audits of States,
Local Governments, and Non Profit Organizations." This requires a single audit when
expenditures of federal grants exceed $300,000 in one year. Expenditures of federa
grants were more than $300,000 during the year ended December 31, 2002; therefore, a
single audit was required for the year ended December 31, 2002.
REPORTING ENT TY
The financial reporting entity inc udes a funds and account groups of the primary
government (i.e., the City of Brook yn center as legally defined), as well as all of its
component units. component units are legally separate entities for which the primary
government is financially accountable.
B ended component units, a though ega y separate entities, are, in substance, part of the
primary government's operations and are inc uded as part of the primary government.
Accordingly, the Economic Development Authority and the Dousing and Redeve opment
Authority are reported as special revenue funds of the city of Brooklyn center.
6302 Shingle Creek Parkway Recreation and Community Center .Phone TDD Number
Brooklyn Center, MN 55430 -2299 (763) 569 -3400
City Mall TDD Number (763) 569 -3300 FAX (763) 569 -3434 4
FAX (763) 569 -3494
The City provides a ful range of municipa services inc uding public safety (po ice and fire),
streets, sanitation, social services, culture recreation, public improvements, planning and
zoning, and general administrative services. The City operates an off -sale liquor store, a
water, sewer, recycling, street light and storm drainage utility, a golf course, and a
convention center known as the Earle Brown Heritage Center.
ECONOM C CONDITION AND OUTLOOK
The city of Brooklyn Center is a northern suburb of the Minneapo is /St. Paul metropo itan
area, adjacent to the City of Minneapolis and located 10 miles from downtown Minneapolis.
The City is who y within Hennepin county and encompasses an area of approximately 8.5
square miles. The Mississippi River forms the city's eastern boundary.
The city experienced its most rapid growth from 1 950 to 1970 when the city's popu ation
grew from 4,300 to its peak of 35,173. The 2000 Census data for the city was 29,172, a
slight increase from the 1 990 Census data of 28,887. The number of housing units has
remained stab a at 11 ,430 units; there were 11 ,704 housing units in 1990.
The estimated market value of property within the city increased 12.42% in 2002 over
2001 and it increased 12.39% in 2001 over 2000. Residential values are continuing to
show increases in early 2003 although commercial /industrial values are ess robust.
Strong demand for starter homes has continued to drive up values of residential property in
the City. Major transportation routes in and through the city, including Interstates 94 and
694, and State Highways 100 and 252, have provided a continued impetus for
development of a strong commercial tax base in the city along and adjacent to these
corridors.
Commercial and industrial properties comprise 39.82% of the city's taxab a net tax
capacity. The largest commercial property in the City is Brookdale Ma a 1 ,093,931
square -foot regions shopping center anchored by Marsha I Fields, Sears, J.C. Penney's,
and Mervyn's of California. Other retail shopping centers in the City include Brookdale
Square, a 125,000 square -foot strip center; Shingle Creek Center, a 157,000 square -foot
building anchored by Target; and Brookview' Plaza, a 70,000 square -foot center anchored
by Best Buy. Other freestanding retai estab ishments inc ude Koh 's Department Store,
Cub Foods Supermarket, and Rainbow supermarket. The Brookdale Corner retail
development, with a Cub Foods supermarket and small retail shops, has enhanced the
area surrounding the Brookda a Mall. `rhe City's municipal liquor store is located in this
newly developed area.
New construction projects in 2002 include: a new retai mall and a Culver's Restaurant at
69 and Brooklyn Boulevard for $1,616,243 and $638,858 respectively; a new I HOP
Restaurant adjacent to Brookdale Mall for $540,000; a single story office building at 3280
Northway Drive for $480,000 and an upgraded SuperAmerica gas station /convenience
store for $804,600. other commercia and industria remode ing projects inc ude Brookdale
Mali projects for $8,379,150; Medtronic for $1,587,437; and an expansion of City County
Credit U n ion for $694,700.
5
The convergence of highways in Brooklyn Center and the close proximity to downtown
Minneapolis make the City an attractive site for hotels and motels. Establishments now
operating in the City include Americl rin, Baymont I nn, Best Western, Comfort I nn, Cou ntry
Inn Suites, Extended StayAmerica, Hilton Hotel, Motel 8, and Super 8 Mote.
MAJOR EVENTS OF 2002
Brooklyn center is a mature, deve oiled suburb that is working to revita ize itse f. With its
affordable housing, excellent schoo s, beautiful parks, and convenient access, it has the
potential to continue to be a vibrant community for many years to come. The revitalization
of Brooklyn center is proceeding on three tracks: rep acement and renews of the
commercial areas of the city; replacement and enhancement of its aging streets, uti ities,
and parks; and the reinvigoration of neighborhoods.
The City continued its redevelopment effort in the Brooklyn Boulevard and 89th Avenue
area with the completion of a Culver's Restaurant on the northeast corner. The City's
Economic Development Authority continues to work with a private deve oper for
construction of a neighborhood reta i center on the property. This approximate y 5.2 acre
site contained some of the o der commercia property a on9 Brook yn Bou evard,
Redevelopment of the Joslyn pole yard site located in the southwest corner of the City
continued in 2002. In September 2001, a 1 09,588 square foot industrial building was
completed, adding to the 203,000 square foot building completed -in 1 990. This former
Environmental Protection Agency Super Fund site is being private y deve oiled with
financial assistance provided for the cleanup from the State of Minnesota and the
Metropolitan Counci Tax increment financing is being provided by the City to facilitate the
development through public improvements such as streets and storm water management
amenities.
As part of a p anned rep acement of the aging infrastructure, the City is in the process of
completing several street and utility improvements. These improvements were funded by
general ob igation improvement bonds supported with specia assessments against
benefited properties, an operating transfer from the general fund, and funds from the
capital projects funds and utility enterprise funds. About one twenty -fifth of the City's
streets and uti ities are reconstructed each year. It is expected that this wil be a perpetual
process, since at the end of twenty -five years, it will be necessary to begin the process
anew with the streets that were done first. An additional benefit of these neighborhood
projects has been the increased interest by residents and their efforts to paint, repair,
andscape and further enhance their properties.
In 1997, Equitab a Real Estate sold Brookdale Ma to Ta isman Brookdale, LLC.
Brookdale Mall is one of seven regional shopping centers in the seven county metropolitan
area. With a new owner and cooperation of existing tenants, more than $40 mi ion is
being invested to remodel and expand the current facility. Additionally, several tenants are
investing in upgrades to the facade and interior spaces to accomplish a complete
renovation. Several new tenants such as old Navy and Barnes and Nob a have been
added as part of the renovation. They will enhance the Mall's customer drawing ability and
will add significantly to the local tax base. A new food court will be completed in 2003.
EO
FINANCIAL NFGRMATIGN
Management of the city is responsible for establishing and maintaining internal controls
designed to ensure that the assets of the city are protected from loss, theft or misuse and
to ensure that adequate accounting data are compiled to a ow for the preparation of
financial statements in conformity with generally accepted accounting principles. nterna
controls are designed to provide reasonab e, but not absolute, assurance that these
objectives are met. The concept of reasonab a assurance recognizes that; (1) the cost of a
control should not exceed the benefits likely to be derived; and (2) the valuation of costs
and benefits requires estimates and judgments by management.
n addition, the city maintains budgetary contro s. The objective of these budgetary
controls is to ensure compliance with legal provisions embodied in the annual budget
appropriation approved by the city's governing body. Activities of the General Fund and
special revenue funds. are inc laded in the annua appropriated budget. Project- ength
financial plans are adopted for the capital Projects Funds. The level of budgetary control
(that is, the level at which expenditures cannot exceed the appropriated amount without
budget amendment by the city counci is estab ished by department for the General Fund
and at the aggregate fund level for all other governmental funds that adopt annual budgets.
Appropriations lapse at year -end and generally are not re- appropriated in the following
year's budget.
As demonstrated by the statements and schedules inc uded in the financial section of this
report, the city continues to meet its responsibility for sound financial management.
GENERAL FUND
The following schedule presents a summary of genera fund budgeted revenues for 2003,
and actual revenues for the fiscal year ended December 31, 2002 compared to 2001.
General Fund Revenues and other Financing Sources
7
2002 Increase
2003
2002
2001
(Decrease)
Budget
Actual
Actual
from 2001
Takes
$10,537,474
$10,990,660
$8,469,023
$2,521 ,537
Reserve for tax abatements
266
(57,510)
323,853
Licenses permits
612,720
823
788
35,367
Intergovernmental revenue
2,999,185
2
4,135,282
(1,291,653)
Charges for services
683,892
575,748
688
(112,705)
Court fines
200,000
278,557
230
48
Investment and other
Miscellaneous revenues
375,000
312,303
697
(385,583)
Total
$15,408,271
$16,091 ,236
$14,952,171
$1
7
Revenues and other Financing sources for the General Fund totaled $16,091,236 in 2002,
an increase of $1,139,065 from the previous year. From the table above, it is apparent that
the major sources of revenue available for funding of general governmental functions are
taxes and intergovernmental revenue, which, when combined, provided 88% of the total
revenues. The principai source of intergovernmental aid to the City is local government aid
of $2,265,267. The decrease in intergovernmental revenue received in 2002 is directly
related to a shift by the Legislature to fund the basic K -1 2 education levy for school districts
by reducing aids to cities. n turn, cities were permitted to levy back the aid reductions
within specific limitations.
In response to potential property tax abatements, the City had established a tax abatement
reserve in the Genera Fund. since the early 1990's, City management had estimated the
potential future abatements on arge commercia properties. The ba ance in the reserve in
the Genera Fund was $266,343 on December 31, 2001. The City eliminated the reserve
in 2092. City management believes that potential tax abatements would not materially
affect the finances of the City.
The large decrease in investment and other revenues is primari y due to the reversa of an
investment writedown taken in 2000 and reversed in 2001 resulting in higher than norms
revenue in 2001. The difference in the fair value of investment adjustments accoLinted for
$334,249 of the decrease. The prevailing low interest rate environment also lowered
interest earnings in 2002.
The fo owing schedule presents a summary of genera fund budgeted expenditures for
2003, and actual expenditures for the fiscal year ended December 31 2002, compared to
2001.
General Fund Expenditures and Other Financing Uses
►;a
u
2002 Increase
2003
2002
2001
(Decrease)
Budget
Actual
Actual
from 2001
General Government
$2,586,379
$2
$2
$49
Public Safety
8
6
5,660,600
524,063
Public Works
1 ,935,472
11986
21142,064
(1 55,372)
Community service
93,105
103,491
106,034
(2,543)
Parks and Recreation
2
2,026,409
2
(178,609)
Economic Development
332,500
340
392,805
(52,146)
Non departmental
514
516,282
372,056
144,228
Admin. Services Reimb.
(784,084)
(596,541)
(767,504)
170
Other Financing Uses
1
1,863,910
1,661,877
202,033
Total
$15,408,271
$14,828,991
$14,277,342
$551,649
►;a
u
Total expenditures and other financing uses in 2001 increased by a total of $551 ,049 over
2000, a 3.86% increase. salaries and benefits account for $271,399 of the increase, due
primarily to the 3% wage adjustment for most employees. The increase in public safety
spending includes a $533,154 increase for police protection; $135,814 of the increase
relates to police building expenditures, which were categorized as public safety in 2002
instead of general government as in prior years. Persona services expenditures not
related to the police building increased $331,954, an 8.81 increase from 2001.
The General Fund transferred $555,000 to the Special Assessment Construction Fund for
infrastructure replacement. `Phis transfer al ows the City to pay cash for street
improvements instead of borrowing through a bond issue for construction costs that would
be su pported with an add itiona property tax. The city hopes to continue this transfer in the
future as part of the p anned replacement of the City's aging infrastructure.
The General Fund had an excess of revenues and other financing sources over
expenditures and other financing uses of $1,282,245 in 2902; the excess in 2001 was
$574,529. Most of the increase in revenues is due to higher tax co ections. The evy was
estab fished to compensate for the loss of state aid as we as provide an additiona
$720,935 for ongoing operations. Additional sums were programmed for street
reconstruction projects. The net increase in revenues for taxes and intergovernmenta
revenue was $1,229,984 or $509,048 more than p anned. Delinquent tax collections of
$219,057 and the discontinuation of the $288,343 tax abatement reserve accounted forthe
higher than planned net increase.
GENERAL FUND BALANCE
As of December 31, 2002, the fund ba ance of the Genera Fund tota ed $7,929,774. This
ending fund balance is the equivalent of approximately six months of budgeted
expenditures for the 2003 budget. Property taxes and intergovernmental revenue
represent 88% of the budgeted general fund revenue for 2003. The State of Minnesota
has structured city finances so most of these revenues are received in the second half of
the fiscal year. Minnesota cities typically receive as little as 10% of their tota revenues in
the first six months of the year. In recognition of this fact, a major portion of the fund
balance is being designated for working capital. The designation amount is determined by
a formula adopted by the city council. The Financial Management Policies adopted by the
City Counci on June 8, 1992 established a formu a for determining a minimum eve of
fund ba ance to be maintained in the Genera Fund. Major elements of the formula inc ude
coverage of assets not readily convertib a to cash and a provision for working capita equal
to 45% of the next year's Gbrteral Fund budget. The Financia Management Po icier go on
to state that no more that 50% of any year's surplus over the minimum level sha I be
committed to other uses in that year.
J
EARLE BROWN FARM TAX INCREMENT DISTRICT
This tax increment financing J F) district had a deficit fund balance as of December 31,
2002. This condition is caused by a series of reductions in property tax class rates made
by the State of Minnesota, which have eroded the revenue base for TIF districts throughout
Minnesota. Borrowing from other City funds is required in order for the district to meet its
obligations. If the current situation continues, the district will experience annual deficits.
The TIF district will make its last transfer to the debt Service Funds in the year 2003. t
has the authority to continue to exist and collect tax increments through the year 2008.
Three years of tax collections beyond 2003 should be sufficient to repay a interna
borrowing to reduce the deficit.
ENTERPRISE OPERAT ONS
The City's enterprise operations are composed of eight separate and distinct activities:
Liquor store, Golf Course, Ear a Brown Heritage Center, Recycling, Water uti ity, sanitary
Sewer uti ity, Street Light utility and Storm Drainage utility.
The liquor store operates in a leased facility adjacent to a Cub Foods Supermarket.
Operating income for 2002 was about $80,000 less than in 2001. However, the Liquor
Fund still earned $81 ,094 after a $100,000 operating transfer to the capita Improvements
Fund.
Centerbrook Go f Course is a nine -hole, par three golf course owned and operated by the
City. Green fees have been increasing each year to keep pace with inflation and the cost
of operations. An interfund loan used to build the golf course is being repaid over a
p an ned sched u a covering twenty years. The business is increasingly competitive with
many new courses being added within the area. Poorweather in 2002 pressured revenues
and net income.
The Earle Brown Heritage Center is a pioneer farmstead that has been historically
preserved and restored as a modern mu tipurpose facility. is convention center can host
conferences, trade shows, and concerts seating 1,000 peop a in either banquet or theater
stye. The City's policy for this enterprise is to set fees and user charges at a evel that
allows the operation to break -even excluding depreciation on contributed assets. That
standard was met in 2002 and 2001.
The dwindling supply of landfill space for the disposal of so id waste continues to be a
major concern in Minnesota. State and county mandated goa s for the diversion of so id
waste to recycling programs took effect in 1989. 1 n response, the City opened a Recycling
and Refuse Fund as an enterprise fund. Thus far, the city is only operating a recycling
program in cooperation with several neighboring communities. Expansion into solid waste
collection wou d only take place if there are c ear advantages to be achieved. Recycling
participation levels should increase with a recent change in collection policy. Customers
are no longer required to sort certain recyclable items as all recyclable items can be placed
into a single container for sorting by the recycling collection entity at a central location.
10
The Street Light Uti ity Fund was established in 2002 to account for expenses related to
streetlights in the City. The majority of the City's streetlights are owned by Xcel Energy; the
City is responsible for electrical and maintenance fees for these lights. Additionally, the
City owns about 200 lights; the city is also responsible for repair and replacement of these
lights in addition to electrical and maintenance fees. By creating this utility fund, the city
has transferred funding responsibi ity for streetlight costs to benefiting properties rather
than absorbing the cost in the General Fund.
The Water and Sanitary Sewer uti ities are arge ydeveloped and a ready reach a parts of
the City. During 2002, 1.14 bil ion ga ons of water were supplied through 115 mi es of
water main from the City's nine wells and 1.1 billion ga Ions of sewage flowed through the
City's 105 miles of sewer mains. Rates for both water and sanitary sewer are reviewed
annually and are increased as needed to provide for increased operating costs, debt and
capital outlays. Three- fourths of the sewer operating expenses are fees paid to the
Metropolitan Council Environmental Services for contracted sewage treatment. P anned
rate increases should be sufficient to keep- both funds profitable. Mains and customer
service lines are being replaced as needed concurrent with the city's 25 -year program for
reconstructing infrastructure.
During the 1980's, the State of Minnesota passed egis ation that requires cities to take
greater responsibility for contro ling storm water runoff. In response to this, the city
created a Storm Drainage Uti ity Fund. Fees to property owners to support operations,
maintenance and capital improvements are based on the amount of water runoff from the
properties. The fees vary according to the size and absorption characteristics of the
respective properties. Construction of storm sewer ines has been incorporated into the
City's 25 -year program for reconstructing infrastructure.
IN`rERNAL SERV CE FUNDS
The central Garage Fund was esta b ished to own and maintain a operating vehic es and
equipment of the city va ued over $1 0,000. At present, the fund maintains over 150 pieces
of rolling and non rolling stock with a net book va ue of $2,704,950. Equipment
maintenance, repair and fuel are charged based on usage. Replacement costs are
provided from rental rates which the central Garage Fund charges city operating
departments for the use of the equipment.
The Public Employees Retirement Fund was established to provide certain health care
benefits for qualifying city employees who retire before age 55. The fund had assets of
$1 ,580,501 at year -end. The liability of the city is analyzed on an annual basis.
The Pub is Emp oyees Compensated Absences Fund accounts for liabi ities to the city
resulting from the accrual of vacation and sick leave time earned by city employees. The
liability is fully funded. Departments are charged for any increase in the liability for its
employees on an annual basis.
11
DEBT ADMINISTRATION
At December 31, 2002, the City had thirteen debt issues outstanding. These issues
include $7,425,000 of general obligation bonds, $5,370,000 of general obligation special
assessment debt, $660,000 of general obligation revenue bonds and $6,1 50,000 of
general obligation tax increment bonds. The City maintained its A -1 rating from Moody's
Investors Service.
The City issued $1 ,205,000 of bonds supported solely by special assessments during
January 2003. Tie specia assessment bond issue provided financing for various
infrastructure improvement projects in the city.
CASH MANAGEMENT
The Finance Department keeps abreast of current trends and procedures for cash
management and forecasting so as to ensure efficient and profitable use of the City's cash
resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter
118A.
nterest earned during 2002 amounted to $1 ,024,202 compared to $3,073,862 during
2001. Changes in the fair va ue of investments increased 2001 earnings by $1 ,553,780;
they decreased 2002 earnings by $28,677. The arge change in fair market va ue in 2001
was attributed to the reversal of a writedown in 2000 of a defau ted commercial paper
issue. The City has historical y held a investments to maturity. Therefore unless the City
iqu idates the investment(s) prior to maturity, it is expected that the change in fair market
value is temporary and wi be reversed in future periods.
The city adopted a written investment policy in 1090 and adopted an updated policy in
2001. The policy`s objectives are to minimize credit and market risk, provide needed
iquidity, and maintain a competitive yie d on the portfo io. Revisions to the po icy in 2001
preclude the city from purchasing individua commercial paper issues. Commercial paper
can on y be purchased through a brokerage as part of a professions y managed fund.
All deposits were either insured by federal depository insurance or co latera ized.
Investment securities are held in a custody arrangement with a bank trust department. All
investments are listed in the lowest custodial credit risk category, category 1. cash and
investment balances from al funds are combined and invested to the extent availab a in
authorized investments. Earnings from securities are allocated to the various funds in
proportion to their relative cash book ba ances.
The city has not purchased any collatera ized mortgage ob igations, derivatives, or strip
investments. In the recent past, the City has not needed to use any short-term debt and
does not anticipate such a need in the future.
12
R SK MANAGEMENT
The City insures for all significant risks. A schedule of such insurance is included in the
Statistical Section.
INDEPENDENT AUDIT
The City Charter and State Statutes require the City council to provide for an audit of the
financial transactions of the city. HLB Tautges Redpath, Ltd. has been retained for that
purpose and their unqualified opinion has been included in this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Brooklyn center for its comprehensive annual financial report for the fisca year ended
December 31, 299 1
The city of Brooklyn center was first awarded a {Certificate of Achievement for Exce ence
in Financial Reporting for its 1988 fisca year report and has received a tots of 24
certificates, including 19 consecutive certificates for the years 1983 through 2001. In order
to be awarded a Certificate of Achievement for Excellence in Financia Reporting, a
governmenta unit must pub ish an easi y readable and efficiently organized comprehensive
annual financial report; its contents must conform to program standards. Such reports
must satisfy both generally accepted accounting principles and applicable egal
requirements.
A certificate of Achievement is valid fora period of one year on y. We believe our current
report continues to conform to certificate of Achievement Program requirements and we
are submitting it to CFOA to determine its eligibility for another certificate.
Respectfully submitted,
Dou as Sell
Director of Fisca &Support Services
13
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
C*ty or Brook yn
Cuter, V'nnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
4ZAeK 40;�Ke 14.
AND
�X President
Executive Director
14
Ta utges Red path. Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Brooklyn Center, Minnesota
We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota,
as of and for the year ended December 31, 2002 as listed in the table of contents. These general purpose financial
statements are the responsibility of the City of Brooklyn Center, Minnesota's management. our responsibility is to
express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to f nancial audits contained in Government Auditing Stwuk rdds, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose
financial statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall general purpose financial statement presentation. we believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the
financial position of the City of Brooklyn Center, Minnesota, as of December 31, 2002, and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Govemment Auditing Standards, we have also issued a report dated
June 2, 2003 on our consideration of the City of Brooklyn Center, Minnesota's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That
report is an integral part of an audit performed in accordance with GovernrnentAuditing Standards and should be
read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as
a whole. The combining, individual fund and account group financial statements and schedules listed in the table of
contents are presented for purposes of additional analysis and are not a required part of the general purpose financial
statements of the City of Brooklyn Center, Minnesota. Such information, has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all
material respects, in relation to the general purpose financial statements taken as a whole. The statistical data has
not been subjected to auditing procedures applied by in our audit of the general purpose financial statements and,
accordingly, we express no opinion on it.
June 2, 2003
Ag; 0010 A I" 4*cl,
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 15
HLB Tautges Redpath, Ltd. is a member of International. A world -wide organization of accounting firms and business advisers.
(This page intentionally left blank.)
16
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financia statements are intended to provide a financia overview of
municipal operations. These reports are at a summary level and include those data
needed to control and ana yze current operations to determine compliance with legal and
budgetary limitations and to assist in the financial planning process.
17
City of Brooklyn Center
COMBINED BALANCE SHEET
All Fund Types and Account Groups
December 31, 2002
Governmental Fund Types
Special
Debt
Capital
General
Revenue
Service
Projects
ASSETS AND OTHER DEBITS
Assets:
Cash and investments
$7,937,436
$5,595,051
$5,746,017
$3,482,308
Receivables:
Interest
433,044
Accounts
63,823
9,040
1
Delinquent taxes
289,726
158,625
79,111
3,837
Special assessments
3,875,650
155,181
Due from other funds
1,116,698
Due from other governments
53,489
890
11,608
209,257
Inventories and supplies
Prepaid expenses
68,279
849
Advances to other funds
105,074
1,493,069
Fixed assets, net
Other Debits:
Amount available in Debt Service Funds
Amount to be provided for General Long -Term Debt
Total Assets and other Debits
$8,950
$6,881,113
$9,712,386
$4,945,189
LIABILITIES. EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable
$370,407
$414,616
$16,434
$1,171,329
Due to other funds
1,116,698
Due to other governments
8,019
Accrued salaries and wages
360,931
7,979
1
Accrued vacation sick pay
Accrued health insurance
Accrued interest payable
Advances from other funds
698,143
Deferred revenue
289,759
181,779
3,954,761
408,777
General obligation bonds payable
Other long -term liabilities
Special assessment bonds with governmental commitment
Revenue bonds payable
Total Liabilities
1,021,097
2,427,234
3,971,195
1,581,944
Equity and other Credits:
Contributed capital
Investment in general fixed assets
Retained earnings:
Reserved
Unreserved
Fund Balances:
Reserved
173
5
1,493,069
Unreserved:
Designated
6,527
Undesignated
1,228,448
4,453,879
1,870,176
Total Equity and Other Credits
7,929,774
4,453,879
5,74'1,'191
3,363,245
Total Liabilities, Equity and other Credits
$8,950,871
$6,881,113
$9,712,386
$4,945,189
(See notes to financial statements)
18
EXHIBIT 1
Proprietary Fund Types
Internal
Enterprise Service
$4,157,378 $6,514
Account Groups
General General
Fixed Lang -Term
Assets Debt
Totals
(Memorandum Only)
December 31,
2002 2001
$33,032,380 $35133,415
$558,376
$17,657
433,044
120
1,444,542
9
1,528,120
1
1,11 6,698
523,762
531,299
414,608
291,889
8,019
4,322,720
3,853551
7,719
1,11608
523,762
64,493
714,914
339,737
849,158
337,450
15,461
352,911
330
153,985
1,549,681
223,113
132559
14
1,598,143
1,648,143
39,574,772
2 $25,075,861
57,355,583
79,020,423
1 18,188
$5,741,191 5,741,191
5,472,514
4,827,444
13,203,809 13,203,809
16
$46,024,509
$9,243,819 $25,075,861
$18,945,004 $129,778,748
$145
$558,376
$17,657
$2,548,819
$2,733,542
1,11 6,698
523,762
8,019
60,867
7,719
439,334
409,552
714,914
714,914
733,221
1,549,681
1549,681
1,549,681
14,583
14
18
900,000
1,598,143
1,648,143
1 18,188
4,953,264
4,827,444
$13,575
13575,000
15,795,040
4,163
5,370,000
5,3709000
6,150,004
660,400
660
860
2,312,014
2,289,971
18,945,000
32,548,455
35,253,341
21,608,205
2,834
24,443,148
25,226,346-
$25,075,861
25,075,861
28,006,847
531,429
531,429
501,532
21 ,572,861
4,118,905
25,691,766
32,887,652
7,407,513
7,120,657
6,527,973
6,437,653
7
10
43,712,495
6,953,848 25,07501
97
110,273,602
$46,024
$9,243,819 $25
$18,945,000
$129,778,748
$145,526,943
19
City of Brooklyn Center EXHIBIT 2
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
All Governmental Fund Types
For the Year Ended December 31, 2002
Revenues
Taxes and special assessments
Licenses and permits
Intergovernmental
Charges for services
Court fines
Investment earnings
Change in fair value of investments
Miscellaneous
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Non departmental
Administrative Services Reimbursement
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financinq Uses( or Sources
Proceeds from sale of bonds
Sale of land
Operating transfers in
Operating transfers out
Total other Financing (Uses) Sources
Excess (Deficiency) of Revenues and other
Sources over Expenditures and other Uses
Fund Balances January 1, as previously reported
Prior period adjustment
Fund Balances January 1, as restated
Equity transfers (out) In
Fund Balances December 31
2,553,425
6,18063 70,558
1,986,592
103,491
2,026,409 99,006
340,659 1
366,282
(596,541)
3,000,000
1,062
12,965,081 1,924,450 4,062,851
3 2,106,161 (2,735,233) (5,754,243) (3,257,160) (1
474,648
208,266 3,493,910
(1,863,910) (2,199,543)
(1 (1,516,6129) 3,003,910
1 589,532 268,677
7 3,864,347 5,472,514
7 3,864,347 5,472,514
(766,343)
$7,929,774 $4,453,879 $5,741,191
(See notes to financial statements)
Special
Debt
General
Revenue
Service
$11,257,003
$3,222,992
$928,559
823,996
$15,659,306 $13,853,278
2,365,732
2,843,629
487,780
292,014
575,748
7
5,824,513
278,557
575,748
688,453
211,198
190
11 %099
(5
(4,963)
(3,054)
106,963
1 34,306
1,062,389
1 6,091
4
1,327,618
2,553,425
6,18063 70,558
1,986,592
103,491
2,026,409 99,006
340,659 1
366,282
(596,541)
3,000,000
1,062
12,965,081 1,924,450 4,062,851
3 2,106,161 (2,735,233) (5,754,243) (3,257,160) (1
474,648
208,266 3,493,910
(1,863,910) (2,199,543)
(1 (1,516,6129) 3,003,910
1 589,532 268,677
7 3,864,347 5,472,514
7 3,864,347 5,472,514
(766,343)
$7,929,774 $4,453,879 $5,741,191
(See notes to financial statements)
3,854,177 25,343 23,628
2,553,426
Totals
6,255,221
Capital
(Memorandum
only)
Projects
2002
2001
$260,752
$15,659,306 $13,853,278
2,365,732
366,282
823,996
788,529
3,416
7
5,824,513
3,000,000
575,748
688,453
1,339,493
278,557
230,408
154,757
666,550
1,020,291
(4,252)
(18,127)
1,062,389
26,448
267,717
150,369
3,854,177 25,343 23,628
2,553,426
2,504,392
6,255,221
5,572,098
1,9869692
2,142,064
103,491
106,034
2,125,415
2,392J 68
2
2,365,732
366,282
372,056
(596,541)
(767,504)
9,608,420 9
6,558,177
3,000,000
2,805,000
1 ,062,851
1,339,493
9,608,420 28,560,802 25,489,310
1,051,277
1,051,277
(4,702,966)
6,880,492
4'19,376
7,299,868
766,343
474,648
4,263,453
(4,063,453)
574,648
(2
23,651,225
419,376
24,070
730,000
572,266
4,124,184
(3,798,684)
1,627,766
(233,214)
23,884,439
23,884,439
$3,363,245 $21 ,488,089 $2301
20
City of Brooklyn Center
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
General and Special Revenue Funds
For the Year Ended December 31, 2002
Revenues
Taxes and special assessments
Licenses and permits
Intergovernmental
Charges for services
Court fines
Investment earnings
Change in fair value of investments
Miscellaneous
Total Revenues
Expenditures
General government
Public safety
Public works
Community services
Parks and recreation
Economic development
Non departmental
Admin. Services Reimbursement
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financina (Uses) Sources
Sale of land
Operating transfers in
Operating transfers out
Total other Financing (Uses) Sources
Excess (Deficiency) of Revenues and other
Sources over Expenditures and other Uses
Fund Balances January 1
Equity Transfer out
Fund Balances December 31
EXHIBIT 3
474,648 474,648
208,266 208,266
(1,645,670) (1 (218 (2 (2 5610
(1,645,670) (1,863,910) (218,240) (2,760,217) (1 1,243,588
1,262,245 1,262,245 710,454 589,532 (168,922)
7 7,433,872 3,864,347 3,864,347
(766,343) (766,343)
$7,433,872 $7,929,774 $495,902 $4574,801 $4,453 ($168,922)
(See notes to financial statements)
21
General Fund
Special Revenue Funds
Actual over
Actual over
Under(
Under(
Budget
Actual
Budget
Budget
Actual
Budget
$10,658,829
$11
$598,174
$3,415,444
$3,222,992
($192,452)
565,485
823,996
258,511
2,769,840
2,843,629
73
242,294
487,780
245,485
605,257
575,748
(29,519)
190,004
278,557
88,557
350,000
211,198
(138,802)
50,000
190,496
140,496
(5,858)
(5
(4,963)
(4,963)
34,305
106,963
72,658
68,000
1 34,306
66,306
15,173,726
16,491,236
917,510
3,775,738
4,430,611
254,873
2,441,150
2,553,426
112,276
6,451,978
6,184,663
(267,315)
20,000
70,558
50,558
2
1 ,986,692
(90,022)
103,419
103,491
72
2,288,897
2
(262,488)
99,006
99,006
342,000
340,659
(1,341)
237,067
1,754,886
1,517,819
646,582
366,282
(240
48,000
(782,684)
(596,541)
186,143
13
12, 965,081
(562,975)
305,067
1
19667
1,645,570
3,126,155
1,480,485
3,470,671
2,106
(1t412,51 0)
474,648 474,648
208,266 208,266
(1,645,670) (1 (218 (2 (2 5610
(1,645,670) (1,863,910) (218,240) (2,760,217) (1 1,243,588
1,262,245 1,262,245 710,454 589,532 (168,922)
7 7,433,872 3,864,347 3,864,347
(766,343) (766,343)
$7,433,872 $7,929,774 $495,902 $4574,801 $4,453 ($168,922)
(See notes to financial statements)
21
City of Brooklyn Center EXHIBIT 4
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
Proprietary Fund Types
For the Year Ended December 31, 2002
operatina Revenues
Sales and user fees
Cost of sales
Net operating Revenues
operatina Expenses
Personal services
Supplies
Other services
Insurance
Utilities
Rent
Depreciation
Total operating Expenses
Operating Income (Loss)
Nonoperatina Revenues Exoenses)
Investment earnings
Change in fair value of investments
Special assessments
Other revenue
Interest and fiscal agent fees
Total Net Nonoperating Revenue
Income Before Contributions and operating
Transfers
Capital Contributions
155,176
(4
451, 322
2,614
(37,799)
567,175
1,24'1,784
231,153
(6,412)
224
111,875
386,329
(10,550)
451,322
2,614
(37,799)
791,9'16
1,353,659
499,791
491,391
290,907
4
(55,138
1,231,791
2'12,142
Operating Transfers Out (2009000)
Net Income 1,253
Depreciation on contributed assets that
212,142
(200,000)
111 1
reduces contributed capital 686,971 96,228
Retained Earnings January 1, as previously reported 29,371 4,017
Prior period adjustment (6
Cumulative effect of change in accounting principle (2 (146,505)
Retained Earnings January 1, as restated 20 3
Retained Earnings December 31 $22 $4,11 8,905
(See notes to financial statements)
783,199
33,389,184
(6
(2
24,074,195
$26,223
2,866
(325,500)
2,541,429
396,477
30,451 ,278
30,451,278
$33,389,184
22
Internal
Totals
Enterprise
Service
(Memorandum only)
Funds
Funds
2002
2001
$13,025,231
$1,118,824
$14,144
$14,344,817
3
3,006
3
10,018,305
1,118,824
11,137,129
11,124,588
2
277,160
3
3
465,859
222,228
688,087
676
3
106,183
3
2
68,945
52,326
121,271
133
297,647
3
301,335
373,409
246,721
246,721
226,659
2
570,105
2
1
9
1
10 575, 386
9
674,609
(112, 866)
56'1, 743
1,635,138
155,176
(4
451, 322
2,614
(37,799)
567,175
1,24'1,784
231,153
(6,412)
224
111,875
386,329
(10,550)
451,322
2,614
(37,799)
791,9'16
1,353,659
499,791
491,391
290,907
4
(55,138
1,231,791
2'12,142
Operating Transfers Out (2009000)
Net Income 1,253
Depreciation on contributed assets that
212,142
(200,000)
111 1
reduces contributed capital 686,971 96,228
Retained Earnings January 1, as previously reported 29,371 4,017
Prior period adjustment (6
Cumulative effect of change in accounting principle (2 (146,505)
Retained Earnings January 1, as restated 20 3
Retained Earnings December 31 $22 $4,11 8,905
(See notes to financial statements)
783,199
33,389,184
(6
(2
24,074,195
$26,223
2,866
(325,500)
2,541,429
396,477
30,451 ,278
30,451,278
$33,389,184
22
City of Brooklyn Center
COMBINED STATEMENT of CASH FLOWS
Proprietary Fund Types
For the Year Ended December 31, 2002
Internal
Enterprise Service
Cash flaws from ooeratina activities: Funds Funds
Operating income (loss) $674,609 ($112,866)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation
Changes in assets and liabilities:
Receivables
Inventories
Prepaid expenses
Payables
Accrued expenses
Accrued interest payable
Accrued health insurance liability
Other nonoperating income
Net cash provided by operating activities
Cash flows from noncanital fnancina activities:
Proceeds from borrowings due to other funds
Principal payments on long -term debt
Principal payments on advance from other funds
Interest paid to other entities
Operating transfers out
Net cash used for noncapital financing activities
Cash flows from capital and related financina activities:
Acquisition and construction of capital assets
Proceeds of sale of fixed assets
Principal paid on revenue bonds
Interest paid on revenue bonds
Net cash used for capital and related financing activities
Cash flows from investina activities:
Investments purchased
Investments sold or matured
Investment earnings
Net cash (used for) provided by investing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Non cash items:
Change in fair value of investments
Golf Course Fund Capital Contribution
(5
2,938,565
231,'153
(2
(2,744,242)
3,848,946
$1,104,704
2
570,105
2
1
58,778
1,161
59
(54
(20,684)
(2,203)
(22,887)
78530
(21,426)
(21,426)
(9
(108,91'!)
1,591
(107
(377
8,906
(19,589)
(10,683)
593,951
(4,250)
(4,250)
(3,962)
126,438
453
453,936
295,747
3
438,199
3,701 t 243
4,128
{21,315}
(56,302)
(50,000)
(1,098)
(200,000)
(328,715)
(2,646,497)
(200,000)
(36,701)
(2
(619,371)
1 04,685
(514,686)
(3,722
1 ,829,79'1
155,176
(1
(1,686,214)
2,391,289
$705,075
{$4,138}
$212,142
(See notes to financial statements)
EXHIBIT 5
Totals
(Memorandum Only)
2002 2001
$561 9 743 $1,635,'138
(21,315)
(56,302)
(50,000)
(1,098)
(200,000)
(328,7'15)
(3
(200,000)
(36,701
(3
(9
4,768,357
386,329
(4,405,100)
(4
6,240,235
$1,705,094
(63,321)
(56,302)
(50,000)
(1,972)
(325,500)
(497,095)
(2
(190,000)
(53,166)
(3,218
(530,283)
3,928,596
499,791
3,898,104
4,310,645
1,932,490
$6,243,135
($5,412 ($10,550) $491
$212,142
23
City of Brook yn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2002
Note 1: Summary of Significant Accounting Policies
The City of Brook yn Center, Minnesota (the City) was formed and operates
pursuant to applicable Minnesota laws and statutes. The governing body consists
of a mayor and four City Counc members e ected at arge to serve four -year
staggered terms.
A. Reporting Entity
As required by accounting principles genera ly accepted in the United States of
America, the City's financial Statements include all funds and departments of the
City and the City's component units. The component units discussed below are
inc uded in the City's reporting entity because of the significance of their operationa
or financial relationship with the City.
BLENDED COMPONENT UNITS:
Blended component units, a though lega ly separate, are in substance, part of the
government's operations; data from these units are combined with data of the
primary government.
These additional units are the Economic Deve opment Authority (EDA) and the
Housing and Redevelopment Authority (HRA) in and forthe City of Brooklyn Center.
The governing board for each Authority is the City Cou nci The Cou nci reviews
and approves the HRA tax levy and the City provides major community
development financing for EDA and. HRA activities. Debts issued for EDA and HRA
activities are City general obligations. A though the EDA and HRA are egally
separate from the City, they are reported as part of the City because the governing
boards are the same. Comp ete financial statements for the EDA and HRA may be
obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota 55430.
JO NT VENTURES AND JO NTLY GOVERNED ORGAN ZAT ONS:
The City has several agreements with other entities that provide reduced costs,
better service, and additional benefits to the participants. The programs in which
the City participates are listed below and amounts recorded within the current year's
financial statements are disclosed.
24
Note 1: Summary of Significant Accountina Policies (cont'd)
Loca Government nformation Systems Association (LOG S):
This consortium of approximately 30 government entities provides computerized
data processing and support services to its members. LOG S is ega y separate; the
City does not appoint a voting majority of its board, and the Consortium is fiscally
independent of the City. The total amount recorded within the 2002 financial
statements of the City is $403,550 for services provided, allocated to the various
funds based on applications and /or use of services. Complete financia statements
may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley,
Minnesota, 55422.
LOG S Insurance Group:
This group provides cooperative purchasing of hea th and life insurance benefits for
approximately 45 governmental entities. The total of 2002 health and life insurance
costs paid by the City was $783,817. complete financia statements may be
obtained from Stanton Group located at 3405 Annapolis Lane, Plymouth, MN
55447.
OTHER:
The Brooklyn Center Fire Department Relief Association (the Association):
The Association is organized as a nonprofit organization, legally separate from the
City, by its members to provide pension and other benefits to such members in
accordance with Minnesota Statutes. is board of directors is a ected by the
membership of the Association and not by the city council. The Association issues
its own set of -financial statements. A I funding is conducted in accordance with
applicab a Minnesota statutes, whereby state aids flow to the Association, tax evies
are determined by the Association and are on y reviewed by the city. The
Association pays benefits direct y to its members. The Association may certify tax
levies to Hennepin County direct y if the city does not carry out this function.
Because the Association is fiscally independent of the city, the financial information
of the Association has not been included within the city's financial statements. (See
Note 15 for disc osures relating to tie pension plan operated by the Association.)
The City's portion of the costs of the Association's pension benefits is included in.
the Genera Fund under public safety. Compete financial statements for the
Association may be obtained at the City offices located at 5301 Shingle Creek
Parkway, Brooklyn Center, Minnesota 55430.
25
Note 1: Surnmary of Significant Accounting Policies (cont'd)
B. Fund Accountinq
The accounts of the city are organized on the basis of funds and account groups,
each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self -ba ancing accounts that comprise
its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Government resources are a ocated to and accounted for in individua
funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled. The various funds are grouped, in the
financial statements in this report, into six generic fund types and two broad fund
categories as fo lows;
GOVERNMENTAL FUNDS:
General Fund The General Fund is the genera operating fund of the city. It is
used to account for al financial resources except those required to be accounted for
in another fund.
Special Revenue Funds Specia Revenue Funds are used to account -for the
proceeds of certain specific revenue sources that are ega y restricted to
expenditures for specified purposes.
Debt Service Funds Debt Service Funds are used to,account for the accumulation
of resources for, and the payment of, general long -term debt principa interest, and
related costs.
Capita Projects Funds capita Projects Funds are used to account for financia
resources to be used for the acquisition or construction of major capital facilities,
other than those Financed by proprietary funds.
PROPRIETARY FUNDS:
Enterprise Funds Enterprise Funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises where
the intent is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered
primarily through user charges.
Internal Service Funds Interna Service Funds are used to account for the
financing of goods or services provided by one department to other departments of
the city on a cost reimbursement basis.
26
Note 1: Summary of Significant Accounting Policies (cont'd)
C. Fixed Assets and Lonq -Term Liabilities
The accounting and' reporting of fixed assets and long -term liabilities associated
with a fund are determined by its measurement focus. A governmental funds are
accounted for on a spending or "financial flow" measurement, which means that
only current assets and current iabilities are genera ly included on their balance
sheets. Their reported fund balance is considered a measure of "available
spendab a resources." Governmenta fund operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Fixed assets used in governmental fund type operations are accounted for in the
General Fixed Assets Account Group, ratherthan in the governmental funds. Pub is
domain general fixed assets consisting of certain improvements other than
bui dings, inc uding roads, curbs and gutters, streets and sidewalks, drainage
systems, and lighting systems, have been excluded from general fixed assets, as
such items are immovable and of value only to the City. No depreciation has been
provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if historical
cost is unavailable. Donated fixed assets are va ued at their estimated market
value as of the date donated
The fixed assets of the proprietary funds are depreciated using the straight- ine
method over the estimated useful lives of the assets. The current estimated usefu
lives are as follows:
Water Sewer Mains Lines
25 years
Buildings and Structures
25 years
Water We s and storage Tanks
25 years
Sewer Lift Stations
25 years
Machinery and Equipment
2-15 years
Furniture and Fixtures
5 years
Long -term liabi ities that are expected to be financed from governmenta funds are
accounted for in the General Long -Term debt Account Group, not in the
governmental funds.
All proprietary funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, a I assets and a liabi ities
associated with the operations of these funds are inc uded on the ba ance sheet.
Fund equity (e.g., net total assets) is segregated into contributed capital and
retained earnings components. Proprietary fund -type operating statements present
increases (e.g., revenues) and decreases (e.g., expenses) in net tota assets.
27
Note 1: Summary of Significant Accountinq Policies (cont'd)
D. Basis of Accou ntinq
Governmental funds are accounted for using the modified accrual basis of
accounting. Their revenues are recognized when they become measurable and
avai ab e. Avai ab a means co ectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period.
Major revenues that are susceptible to accrual inc ude taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major
revenues that are not susceptible to accrual include licenses and permits, fees, and
miscellaneous revenues; such revenues are recorded only as received because
they are not measurable until co lected. Interest on special assessments is
recognized as revenue when due, net of delinquencies.
Expenditures are general y recognized under the modified accrua basis of
accounting when the re ated fund iabi ity is incurred, except for principa and
interest on genera ong -term debt which is recognized when due.
A proprietary funds are accounted for using the accrual basis of accounting. Their
revenues are recognized when they are earned, and expenses are recognized when
they are incurred. Unbilled Water and Sewer Fund utility service receivab es are
recorded at year -end. The City applies a app icable Financia Accounting
Standards Board (FASB) pronouncements issued prior to November 30, 1989 in
accounting for its proprietary operations.
E. Budgets and Budgetary Accounting
The city fol ows these procedures establishing the budgetary data reflected in the
financial statements:
1. In August, the city Manager submits to the City Counci proposed operating
budgets for the fiscal year commencing the following January. The operating
budgets inc ude expenditures and the means of financing them.
2. The county mai s individual property tax notices showing the taxes that wou d
resu t from the proposed budgets of a taxing units to each property owner in
November.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legs y enacted with the passage of resolutions by the, city
Council in the month of December.
8. The City council must authorize any transfer of budgeted amounts between
departments within the General Fund. A transfer of budgeted amounts within
ind ividua departments must be authorized by the city Manager.
Note 1: Summary of Significant Accounting Policies (cont'd)
8. Supplemental appropriations during the year may orily be made by the City
Council. These amounts must be financed by funds from the contingency reserve
set up in the Genera Fund or by additional revenues.
7. A budget amounts apse at the end of the year to the extent they have not been
expended or re- encumbered by city council directive in the fo lowing fiscal year.
8. Formal budgetary integration is emp oyed as a management control device
during the year for a I governments funds with the exception of Debt Service Funds
and capital Projects Funds. Forma budgetary integration is not employed for Debt
Service Funds because effective budgetary control is alternatively achieved through
general obligation bond indenture provisions. Budgetary control for capita Projects
Funds is accomplished through the use of project controls and project- ength
budgets.
9. Budgets are adopted on a basis consistent with accounting princip es generally
accepted in the United States of America. Annual appropriated budgets are
adopted, for all governmental funds except for the project length capital Projects
Funds and the Debt Service Funds.
10. Budgetary contro is maintained at the department level for the General Fund
and at the fund evel for all other governmenta funds that adopt annua budgets.
11. Budgeted amounts are as originally adopted, or as amended by the city
Dounci Individual and aggregate amendments were not materia in re ation to the
original appropriations.
F. cash, Dash Equivalents and Investments
Dash ba ances from all funds are combined and invested to the extent avai ab a in
authorized investments (see Note 2 Earnings from such investments are al ocated
to the respective funds on the basis ,of applicable cash balance participation by
each fund. cash and investments are stated at fair va ue. Unless individual
investments become impaired, a certificates of deposit with a maturity of one year
or less when purchased are stated at amortized cost which approximates market
value. A I highly liquid unrestricted investments with a maturity of three months or
less when purchased are considered to be cash equivalents.
G. Inventories and Supplies
Inventories in the proprietary funds are valued at cost, using the weighted average
method in the Municipal Liquor Fund and the first -in /first -out (F FO) method in the
other proprietary funds. The costs of governmental fund type supp ies are recorded
as expenditures when purchased.-
29
Note 1: Summary of Significant Accounting Po icier (cont'd)
H. Accrued Vacation and Sick Pav
The City pays employees severance pay upon termination of employment based on
accumu ated sick eave and accrued vacation. such pay is accrued as an
expend itu re/expense as it is earned and accounted for in the Compensated
Absences Fund, an internal service fund established for that purpose.
I. Fund Eauity
contributed capital is recorded in proprietary funds that have received capital grants
or contributions from developers, customers, or other funds.
Reserves represent those portions of fund equity not avai ab a for appropriation or
expenditure, or ega y segregated for a specific future use. Designated fund
balance represents tentative p ans for Future use of financial resources.
J. Property Tax
Property tax evies are set by the city Cou nci in December of each year and are
certified to Hennepin County for collection in the fo owing year. In Minnesota,
counties act as collection agents for al property taxes.
The County spreads all levies over taxable property. Such taxes become liens on
properties on January 1 in the year of col ection. Revenues are accrued and
recognized in the year co lectible, net of delinquencies.
Real estate property taxes may be paid by taxpayers in two equal installments on
May 15 and October 15. Personal property taxes may be paid on February 28 and
June 30. The county provides tax settlements to titles and other taxing districts two
times a year, in Ju y and December.
Taxes that remain unpaid at December 31 are c assified as de inquent taxes
receivable and are fully offset by deferred revenue because they are not known to
be available to finance current expenditures.
K. Total columns on Combined statements
Total columns on the Combined Statements are captioned "Memorandum only" to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financia position, results of operations or cash flows in
conformity with accounting principles generally accepted in the United States of
America. I nterfu nd eliminations have not been made in the aggregation of this data.
30
Note 1: Summary of Significant Accounting Po icies (cont'd)
L. New Accounting Pronouncement
In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and
Management's Discussion and Analysis for State and Local Governments. This
statement is effective for the City for the year ending December 31, 2003.
Statement No. 34 will affect the presentation of the city's annual financial report.
Fhe statement a so requires the city to utilize the economic resources measurement
focus as well as the accrual basis of accounting. The city has not yet determined
the effects Statement No. 34 wi have on its financial statements.
M. Use of Estimates
'rhe preparation of financia statements in accordance with genera ly accepted
accounting principles (GAAP) requires management to make estimates that affect
amounts reported in the financial statements during the reporting period. Actual
results could differ from such estimates.
N. Deferred Revenue
The City reports deferred revenue on its combined ba ance sheet. Deferred
revenues arise when potentia revenue does not meet both the "measurable" and
"available" criteria for recognition in the current period. Deferred revenues also
arise when resources are received by the government before it has a legal claim to
them, as when grant monies are received prior to the incurrence of qualifying
expenditures. In subsequent periods, when both revenue recognition criteria are
met, or when the government has a egal claim to the resources, the iabi ity for
deterred revenue is removed from the combined balance sheet and revenue is
recognized.
The city's reported deferred revenues are $4,953,284. The amount inc udes
special assessments of $4,083,171; property taxes of $478,958; grants of
$224,504; water tower rental fees of $11 0,558 and $50,043 of other misceI aneous
deferred items.
Note 2: cash and Investments
Deposits
In accordance with Minnesota Statutes, the City maintains deposits at those
depository banks authorized by the city Counci All such depositories are members
of the Federal Reserve System.
Minnesota Statutes require that all city deposits be protected by insurance, surety
bond, or collateral. The market value of collateral pledged must equal 110% of the
deposits not covered by insurance or bonds.
31
Note 2: Cash and nvestments (cont'd)
Authorized collateral includes the egal investments described below, as well as
certain first mortgage notes, and certain other state or local governmentob igations.
Minnesota Statutes refit i i re that securities p edged as col ateral be held in
safekeeping by the City Treasurer or with a financia institution other than that
furnishing the collateral.
Credit Risk Category
(1) nsu red or col atera ized by securities he d by the
City or its agent in the city's name
(2) Col ateralized with securities held by the pledging
institution's trust department in the City's name
(3) Uncol atera ized or collatera ized with securities held
by the pledging institution but not in the City's name
B. I nvestments
Bank Carrying
Ba ances Amount
$103,197 $104,225
848,372 481 9 384
$950 $585,509
The City may also invest idle funds as authorized by Minnesota statutes, as fo ows:
a. direct obligations or obligations guaranteed by the United states or its
agencies.
b. shares of investment companies registered under the Federa
nvestment Company Act of 1 940 and whose only investments are in
securities described i n (a) above.
C. General obligations of the State of Minnesota or any of its
municipalities.
d. Banker's acceptances of United states banks a igib a for purchase by
the Federal Reserve System.
e. Commercial paper issued by United States corporations or their
Canadian subsidiaries, of the highest quality, and maturing in 270
days or less.
f. Repurchase or reverse repurchase agreements with banks that are
members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dea er in U.S.
government securities to the Federal Reserve Bank of New fork, or
certain Minnesota securities broker dealers.
32
Note 2: Cash and Investments (cont'd)
The City has not purchased any co atera ized mortgage obligations, derivatives
or strip investments. The City does not purchase individual commercial paper
issues; commercial paper is only held through shares of money market pools
that invest in multiple issues. Investments are typically held to maturity.
The City participates in an external investment pool sponsored by the League of
Minnesota cities. The pool is established in accordance with Minnesota
Statutes, Section 471.59. only municipalities as defined by state Statute are
permitted to participate in the fund. As of December 31, 2002, the fair value of
the city's position in the pool is the same as the value of the pool shares.
The City's investments are categorized below to give an indication of the level of
custodial credit risk assumed at year -end. category 1 includes investments that
are insured or registered or for which the securities are held by the City or its
agent in the City's name. Category 2 includes uninsured and unregistered
investments for which the securities are he d by the counter party's trust
department or agent in the city's name. category 3 includes uninsured and
unregistered investments for which the securities are held by the counter party,
or by its trust department or agent, but not in the city's name.
Balances at December 31, 2002:
Securities Type
Investments categorized:
U.S. Government
Federal agencies
Investment pools
Total investments
Deposits
Petty cash /change funds
Total cash and investments
Carrying
Credit Risk category Amount/
1 2 3 Fair Value
$4,858,750 $4
22,494, 787 22,494, 787
$27,353,537
27,353,537
5, 088, 850
32,442,398
585
4
$33,032,380
33
Note 3: Fixed Assets
Changes in the General Fixed Assets Account croup during 2002 were as follows:
The city Council approved an amended fixed asset policy. The policy increased
capitalization thresholds and shortened most useful lives.
Balance
Dec. 31, 2662
$3,298,944
18,525,674
2,906,141
0
345
$25,075,861
The fallowing is a summary of proprietary fund -type fixed assets at December 31, 2002:
Balance
Internal
Enterprise
Jan. 1, 2002
Additions
Adjustments*
Land
$3,646,636
$3,1 97,342
$347,726
Buildings Improvements
17,894
$2,282,032
1
Park Improvements
3
218,064
1
Furniture Fixtures
1
617,506
1
Departmental Equipment
1,194,499
25,699
874,452
TOTAL GENERAL FIXED
(3,106,076)
Net
$39,574,772
ASSETS
$28,006,847
$2,525,795
$5,456,781
The city Council approved an amended fixed asset policy. The policy increased
capitalization thresholds and shortened most useful lives.
Balance
Dec. 31, 2662
$3,298,944
18,525,674
2,906,141
0
345
$25,075,861
The fallowing is a summary of proprietary fund -type fixed assets at December 31, 2002:
Note 4: contributed Cacital
During 2002 contributed capital changed by the following amounts:
Internal
Enterprise Service
Funds Funds
Deductions:
Depreciation on contributed assets ($686,971) ($96,228)
Contributed capital, January 1, 2002 22,295,175 2
Contributed capital, December 31, 2002 $21,608,205 $2,834,943
34
Internal
Enterprise
Service
Funds
Funds
Land
$3,1 97,342
Land Improvements
368,488
Buildings Improvements
17,328,964
Mains Lines
37
Departmental Equipment
617,506
$5,811,026
Total
58, 669, 667
5
Less accumulated depreciation
(19,094,895)
(3,106,076)
Net
$39,574,772
$2,704,950
Note 4: contributed Cacital
During 2002 contributed capital changed by the following amounts:
Internal
Enterprise Service
Funds Funds
Deductions:
Depreciation on contributed assets ($686,971) ($96,228)
Contributed capital, January 1, 2002 22,295,175 2
Contributed capital, December 31, 2002 $21,608,205 $2,834,943
34
Note 5: Cperatina Leases
The City leased space for its municipal liquor store in 2002. The ten
year lease, which began in June 2000, has an option of a ten -year
extension. This lease provides for a minimum monthly base rent
payment, p us a pro -rata share of common area expenses. n addition,
it requires additional lease payments if agreed -upon revenue
thresholds are attained. This ease may be canceled at the City's
option if the city ceases liquor operations. Total rental expense under
the ease agreements for the years ended December 31, 2002 and
2001 was $158,702 and $140,873, respectively. Future minimum rent
payments under the current agreement are as follows:
Year Endinq
2003 -2004
2005
2006 -2009
2010
Amount
01,350 per year
05,226
100,170 per year
44.703
$724.404
The Ear a Brown Heritage Center Fund, which operates as an
enterprise fund, leased space to two tenants in 2002. one tenant
signed a lease for a ten -year period commencing January 1, 1999.
Another tenant has signed a two -year lease for $'10,200 per year
commencing January 1, 2003. Payment from this tenant will be in the
form of audio /visual equipment trade -out. This equipment will be used
by the Heritage center for client events. Rental revenues and
expenses under the lease agreements were as fol ows:
2002 2001
Rental Revenues $62 $62
Rental Expenses $58 $26,688
Future minimum rentals to be received are as follows:
YEAR 2003 2004 2005 2006 2007 2008
CASH $41,563 $41,533 $41,200 $41,307 $42,488 $38,947
TRADE- $22,$OO $22,800
OUT
35
Note 6: Lonq-Term Debt
The city's long -term debt includes general obligation bonds, tax increment bonds, and
special assessment improvement bonds, all of which are recorded in the General Long
Term Debt Account Group. In addition, the City issued storm sewer revenue bonds
which are recorded as a liability in the Storm Drainage Fund.
The following is a summary of bond transactions for the year ended December 31, 2002:
$9,368,422 $7,392,716 $6,216,552 $714,000 $23,631 ,690
If special assessments are not adequate to retire the outstanding debt, the city's full faith
and credit are pledged for their redemption. The general obligation, tax increment, and
storm sewer revenue bonds are backed by the full faith and credit of the City.
36
General
Tax
Special
Storm Sewer
Obligation
I ncrement
Assessment
Revenue
Bonds
Bonds
Bonds
Bonds
Total
Bonds payable
January 1
$8,105,000
$7,690,000
$6,150,060
$860,000
$22,805,000
Bonds retired
680,000
1,540,004
780,000
200,000
3
Bonds payable
December 31
$7,425,000
$6,1 50,000
$5,370,000
$660,000
$1 9,605,000
The annual requirements to amortize
all outstanding debt as
of December 31,
2002
including interest of $4,026,690, are as follows:
General
Tax
Special
Storm Sewer
Obligation
Increment
Assessment
Revenue
Bonds
Bonds
Bonds
Bonds
Total
2003
$1
$1,985,412
$1,092,596
$239,540
$4,344,904
2004
1
2
1
238,250
4,327,831
2005
1
531
1 1 006,455
236,210
2
2006
1
507,362
864
2
2007 on
5J76
2
2
9
$9,368,422 $7,392,716 $6,216,552 $714,000 $23,631 ,690
If special assessments are not adequate to retire the outstanding debt, the city's full faith
and credit are pledged for their redemption. The general obligation, tax increment, and
storm sewer revenue bonds are backed by the full faith and credit of the City.
36
Note 6: Lona Term Debt (cont'd)
Long -term debt obligations outstanding at year -end are summarized as follows:
37
Bond
Payment
Issue
Maturity
Authorized
Rates
Dates
Date
Date
And Issued
Retired
Outstanding
General Obligation Bonds
Refunding State -Aid Street Bonds
3.55 -4.0
4 -01
10 -01
12 -01 -98
04 -01 -06
$1,585,000
$485,000
$1
Police and Fire Building Bonds
4.1 -4.9
2 -01
8 -01
12 -01 -97
02 -01 -13
7
$1,575,000
6,325,000
Total
$9,485,000
$2,060,000
$7,425, 000
General Obligation Tax Increment Bonds
1991 Tax Increment Bonds
4.7 -6.0
2 -01
8 -01
03 -01 -91
02 -01 -04
$6,050,000
$4
$1,975,000
1992 Refunding Tax Increment
4.5 -5.6
2 -01
8 -01
02 -01 -92
02 -01 -03
4
3,505,000
765
1995 Taxable Tax Increment Bonds
6.0 -6.75
2 -01
8 -01
11 -01 -95
02 -01 -11
4
1
3
Total
$14
$8
$6,150,000
General Obligation Special Assessment Bonds
1994 Street Improvement Bonds
4.1 -5.5
2 -01
8 -01
08 -01 -94
02 -01 -05
$835,000
$560,000
$275,004
1995 Street Improvement Bonds
4.0 -4.9
2 -01
8 -01
11 -01 -95
02 -01 -06
780,000
440,000
340,000
1996 Street'Improvement Bonds
4.2 -5.1
2 -01
8 -01
11 -01 -96
02 -01 -07
1,440,000
675,000
765
1997 Street Improvement Bonds
4.0 -4.7
2 -01
8 -01
12 -01 -97
02 -01 -08
1,075,000
455,000
620,000
1998 Street improvement Bonds
3.4 -4.2
2 -01
8 -01
12 -01 -98
02 -01 -09
1
355,000
730,000
1999 Street Improvement Bonds
4.1 -5.0
2 -01
8 -01
12 -01 -99
02- 01 -10-
1
330
1 ,255
2000 Street Improvement Bonds
4.3 -4.9
2 -01
8 -01
12 -01 -00
02 -01 -11
735,000
80,000
655,000
2001 Street Improvement Bonds
2.6 -4.4
2 -01
8 -01
12 -01 -01
02 -01 -12
730,000
730,000
Total
$8,265,000
$2,895,000
$5,370,000
General Obligation Revenue Bonds
1994 Storm Sewer Revenue Bonds
4.2 -5.4
2-018-01
08 -01 -94
02 -01 -05
$1,830,000
$1
$660,000
Total
$1,830,000
$1,170,000
$660,000
37
Note 6: Lona Term Debt (cont'd)
In addition to the bonded debt listed above, the City of Brooklyn Center had an amount
recorded as "other long term liabilities" in 2001. This was a loan extended to the City by
Northern States Power for the purpose of promoting energy conservation improvements to
City owned facilities, The loan was recorded in the General Longterm Debt Group of
Accounts and was used for installation of low energy lamps in traffic signals. It was repaid
by the General Fund in 41 monthly installments of $1,388 which commenced on November
4, 1998. The debt was paid off in 2002.
General
Long -Term
Debt
Other long term liabilities payable January 1 $4,163
Liabilities retired during 2002
(4,163)
Other long term liabilities payable December 31 $0
Conduit debt obligations
From time to time, the city has issued Housing Revenue Bonds and Industrial
Revenue Bonds to provide assistance to private sector entities for the acquisition
and construction of housing, industrial, and commercial facilities deemed to be in
the public interest. The bonds are, secured by the property financed and are
payable solely from payments received on the underlying mortgage loans. upon
repayment of the bonds, ownership of the acquired facilities transfers to the
private sector entity served by the bond issue. Neither the City, the' State, nor
any political subdivision thereof is obligated in any manner for the repayment of
the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 31, 2002, there were five series of Housing Revenue or
Industrial Revenue Bonds outstanding, with an aggregate principal amount
payable of $24,225,000. Several variable debt issues are also outstanding.
9
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Mete 8: Reserved /Designated Fund Equity
Fund balances and retained earnings in the various funds have
been reserved or designated for the following purposes:
Reserved Fund Equity
Retained Earnings:
Enterprise Funds:
Water Uti ity Fund Specia. Assessments
Sanitary Sewer Fund Specia Assessments
Storm Drainage Fund
Debt Service
Special Assessments
Tota l Rese rued Retained Earnings
Fund Ba a noes:
General Fund:
Advances to Other Funds
Prepaid Expenses
Debt Service Funds:
General ab igation Bonds Debt Service
Tax Increment Bonds Debt Service
Special Assessment Bonds Debt Service
Total Debt Service Funds
Capital Projects Funds:
Capital Improvements Fund
Advances to Other Funds
Municipal State Aid for Construction Fund
Advances to Other Funds
Total Capital Projects Funds
Tota Reserved Fund Balances
Total Reserved Fund Equity
Designated Fund Equ itv
General Fund:
Working Capital
Total Designated Fund Equity
$275,437
3,455
239,540
129997
531 ,429
105,074
68,279
173,353
871,970
2,212
2,656,759
5,74'1,191
11 111
593,069
1
7
$7,870,763
$6,527,973
$6,527,973
40
Note 9: nterru nd Receiva b es and Pava bles
Due to /from other funds are short -term receivableslpayables. Advances
to/from other funds are considered ong -term receivableslpayables.
Advances have maturities extending through the year 2017. Advances
between funds are offset by a fund balance reserve account and are not
expendable or available financial resources. Advance and due to
amounts are subtracted from the respective funds' monthly cash
balances which form the basis for interest allocation. Subsequent y,
these iabi ities result in an interest rate charge equal to the city's
investment return. Negative cash balances result in interest charges for
affected funds.
Due from Due to
Other Funds other Funds
Special Revenue Funds:
Tax Increment #3 Fund 1
Earle Brown Farm Tax Increment Fund 1 18
Total 1 1,116,698
Advances to Advances from
Other Funds other Funds
General Fund 1 05,074
Special Revenue Funds:
Earle Brown Farm Tax Increment Fund 598
Capital Projects Funds:
Capital Improvements Fund 900
Municipal State Aid construction Fund 593,069
Enterprise Funds:
Golf Course Fund 900,000
Total 1 1
41
Note 10: ndividual Fund Disclosures
A deficit fund ba ance exists at December 31, 2002 in the fo owing funds:
Earle Brown Tax ncrement Financing District:
Unreserved deficit fund balance $1,814,455
Special Assessment construction Fund:
Unreserved deficit fund balance $447,951
The deficit of the Tax ncrement Fund is being funded through interna borrowing
and will be repaid from future surplus tax increments. The deficit of the
Construction Fund will be funded by bonds issued in 2003.
Excess of Expenditures over Appropriations:
For the year ended Decerber 31, 2002, expenditures exceeded budget at the
department level for the General Fund or the fund level for all other funds (i.e.,
the legal level of budgetary control) as follows:
General Fund Departments:
Finance
Legal
Government Buildings
Protective Inspection
Streets
Social Services
Children's Programs
Administrative Reimbursement
Other Financing Uses
Specia Revenue Funds:
Economic Development Authority
Earle Brown Tax Increment District
Tax ncrement District No. 3
Tax Increment District No. 4
Community Development B ock Grant
City n itiatives Grant
Note 11: contingencies. Subsequent Events and commitments
$4,415
102,716
52,057
8,005
56,274
72
1,115
1 86,'143
218,240
$94
7,775
718,119
2
96,206
123,299
Arbitrage Rebate Liability: The Tax Reform Act of 1985 requires governmental
entities to pay to the federal government income earned on the proceeds from
the issuance of debt in excess of interest costs, pending the expenditure of the
borrowed funds. `phis rebate of interest income (known as arbitrage) applies to
governmental debt issued after August 31, 1986.,
42
Note 11: Contingencies, Subsequent Events and Commitments (cont.)
The City issued greater then $5 million of bonds in the years 1991, 1992 and
1997 and therefore is required to rebate excess investment income re ating to
these issues to the federal government. The City rebated $99,232 during 2002
for the 1997B Bonds. The extent of the City's liabi ity for arbitrage on
the remaining bond issues is not determinable at this time. However, in the
opinion of management, any such liability wou d be immateria
Program Compliance: Federa program activities are subject to financial and
compliance regulation. To the extent that any expenditures are disallowed or
other compliance features are not met, a liability to the respective grantor
agency could result.
Legal Claims: The City is subject to certain legal claims in the normal course of
business. Management does not expect the reso ution of these c aims wi have
a material impact on the City's financial condition or results of operations.
Federa and State Funds: Amounts received or receivab a from federa and
state agencies are subject to agency audit and adjustment. Any disa owed
claims, inc uding amounts already collected, may constitute a iabi ity of the
applicable funds. The amount, if any, of funds which may be disallowed by the
agencies cannot be determined at this time although the City expects such
amounts, if any, to be immaterial.
Tax Increment Districts: The City's tax increment districts are subject to review
by the State of Minnesota office of the state Auditor (OSA). Any disal owed
claims or misuse of tax increments could become a liability of the applicable
fund. Management has indicated that they are not aware of any instances of
non compliance which wou d have a material effect on the financial statements.
Grants: The City approved grants in the amount of $325,000 to Boca Limited
Partnership. The grant requires repayment if certain requirements are not met.
In turn, the City would be required to return the funds to Hennepin County.
Subsequent Events: on January 9, 2003, the City c osed on a ten year debt
issue of $1,205,000 to finance the 2002 street improvement projects.
Contractua Commitments: The City has entered into severs contractua
commitments which are in process at year end. At December 31 2002, the
City's committed ob igation for such projects was approximately $805,000.
Contingent Liability: rhe City entered into two limited tax increment notes with
developers whereby the City shall pay the developers the lesser of the
schedu ed payment or avai able tax increment. Whether a payment wi occur
and if so, the amount of the payment (s) are uncertain since all payments are
dependent on the City receiving tax increment from the developer's project. As
such, this liabi ity has not been recorded in the financial statements. A schedule
of the notes outstanding at December 31, 2002 is as fo ows:
43
Note '1 1 Contingencies, Subsequent Events and Commitments (cant.)
Original 12131/2002 Interest Maturity
Note Principal Balance Rate Date
Twin Lakes Business Park $1,000,000 $333,333 8.00% 8/1/2003
Twin Lakes Business Park $2,169,938 $2 8.00%
No maturity date is set. Payments will continue until the principal is paid.
Note 12: Risk Management
The City is exposed to various risks of oss related to torts; theft of, damage to
and destruction of assets; errors and omissions and natural disasters for which
the City carries commercial insurance policies. The city retains risk for the
deductib a portions of the insurance policies. The amount of these deductib es
is considered immateria to the financia statements.
There were no significant reductions in insurance from the previous year or
sett ements in excess of insurance coverage for any of the past three years.
Note 13: Post -Emp ovment Health care Benefits
The City has provided post retirement hea th care benefits, as per the
requirements of a city Counci reso ution, for certain retirees and their
dependents since 1986. Fu time errlp ogees have the option of retaining
membership in the City's health .insurance plan for which the city will pay the
single person premium unti such time as the retiree is eligible for Medicare
coverage or at age 65, whichever is sooner. f the retiree desires to continue
family coverage, the additional cost for fami y coverage shall be paid by the
retiree to the City. There are two methods whereby an employee can qualify
under this program. First, the empoyee,on the date of his/her retirement, must
meet a igibi ity requirements for a fu retirement annuity under PERA (Note 14A)
without reduction of benefits because of age, disability, or any other reason for
reduction. n addition, the employee must have been employed full time by the
City for the ast ten consecutive, years prior to the effective date of retirement.
Additiona y, emp oyees who are retiring after twenty -five years of consecutive
service with the City and are eligib a to receive a pension from PERA shall have
the option of retaining membership in the City's health insurance plan for which
the employee will pay the premiu u ntil such time as the retiree is eligib a to
receive a full- retirement annuity under PERA or PERA po ice. At that time, the
City will pay the single person premium anti suc i time as the retiree is eligib e
for Medicare coverage or at age 65, whichever'is sooner. Employees participate
in this program on -a voluntary basis.
As of December 31, 2002, eight employees currently participate in this program.
The cost of City paid hea th care premiums for the years ended December 31,
2002 and 2001 was $25,896 and $24,520, respective y. Fund iabilities are paid
on a- pay as you go basis with investment earrings of the Fund. The $1,543,68'1
recorded as a iabi ity reflects the City's ba ance expensed and accrued for
future years for this obligation. The liability will remain unchanged unti a
thorough analysis of future liabi ities is performed.
44
Note 14: Defined Benefit Pension P ans Statewide
A. Plan Description
All full --time and certain part -time emp oyees of the city of Brooklyn center are
covered by defined benefit pension plans administered by the Public Employees
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund PEPFF), which are cost sharing, multiple -emp oyer retirement plans.
These plans are estab ished and administered in accordance with Minnesota
Statutes, Chapters 353 and 355.
PERF members be ong to either the coordinated Plan or the Basic Pan.
Coordinated Plan members are covered by Social security and Basic members
are not. All new members must participate in the coordinated Plan. All police
officers, fire fighters, and peace officers who qualify for membership by statute
are covered by the PEPFF,
PERA provides retirement benefits aswe as disability benefits to members, and
benefits to survivors upon death of a igible members. Benefits are estab ished
by state statute, and vest after three years of credited service. The defined
retirement benefits are based on member's highest average salary for any five
successive years of al owable service, age, and years of credit at termination of
service.
Two methods are used to compute benefits for PERF's coordinated and Basic
members. The retiring member receives the higher of step rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic P an member is 2.2 percent of average sa ary for
each of the first 10 years of service and 2.7 percent for each- remaining year.
The annuity accrua rate for a coordinated Pan member is 1.2 percent of
average salary for each of the first 10 years and 1.7 percent for each remaining
year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary
for Basic Plan members and 1.7 percent for coordinated P an members for each
year of service. For a I PEPFF members and PERF members whose annuity is
calculated using Method 1, a fu I annuity is available when age p us years of
service equal 90. A reduced annuity is also available to eligible members
seeking early retirement.
There are different types of annuities avai able to members upon retirement. A
normal annuity is a ifetime annuity that ceases upon the death of the retiree -no
no survivor annuity is payable. There are also various types of joint and survivor
annuity options available which will reduce the monthly normal annuity amount,
because the annuity is payable over joint ives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for
a deferred annuity at retirement age. Refunds of contributions are avai ab a at
anytime to members who leave public service, before retirement benefits begin.
45
Note 14: Defined Benefit Pension Plans Statewide (cont'd)
The benefit provisions stated in the previous paragraphs of this section are
current provisions and apply to active plan participants. Vested, terminated
emp oyees who are entit ed to benefits but are not receiving them yet, are bound
by the provisions in effect at the time they ast terminated their public service.
PERA issues a publicly available financia report that includes financial
statements and required supplementary information for PERF and PEPFF. That
report may be obtained by writing to PERA, 60 Empire Drive, ##200, St. Paul,
Minnesota, 55103 or by ca ing (551) 290 -7480 or 1-800 -652 -9025.
B. Fundina Policy
Minnesota Statutes Chapter 353 sets the rate for emp oyer and employee
contributions. These statutes are estab fished and amended by the state
Legislature. The City makes annual contributions to the pension plans equal to
the amount required by state statutes. PERF Basic Plan members and
Coordinated Pan members are required to contribute 9.10% and 5.1
respective y, of their annual covered sa ary. PEPFF members are required to
contribute 6.20 of their annua covered salary. The city of Brookyn center is
required to contribute the following percentages of annual covered payro I:
11.78% for Basic Pan PERF members, 5.53% for Coordinated Plan PERF
members, and 9.30% for PEPFF members. The city's contributions to the
Pub is Emp oyees Retirement Fund for the years ended December 31, 2002,
2001, and 2000 were $299,954, $295,052, and $299,879, respective y. The
City's contributions to the Public Employees Police Fire Fund for the years
ended December 31, 2002, 2001, and 2000 were $255,923, $239,799, and
$223,541, respective y. The city's contributions were equa to the contractua y
required contributions for each year as set by State statute.
Note 15: Pension Plan Brooklyn center Fire Department Relief Association
Plan Description
The city contributes to the Brook yn center Fire Department Relief Association
(the Association) which is the administrator of a single employer retirement
system to provide a retirement plan (the Plan) to volunteer fire fighters of the
City who are members of the Association. The Association issues a financial
report which is available at city offices.
Fundinq Policy and Annual Pension cost
The city evies property taxes at the direction of and for the benefit of the Plan
and passes through state aids allocated to the Plan, all in accordance with,
enab ing State statutes. The minimum tax levy obligation is the financial
contribution requirement for the year less anticipated state aids.
Note 15: Pension Plan B rooklvn Center Fire Department Relief Association (cont'd)
Contributions: Total contributions to the Plan in 2902 were $118,598, of which
$16,239 was levied by the City of Brooklyn Center and
$192,269 was from the State of Minnesota. The actuarially
determined contribution based on an actuarial valuation
performed at January 1, 2901 was $56,879, which represents
funding for normal cost of $45,795 and administration of
$11,084. Actual contributions have continued at higher levels
to allow for a transition to a defined contribution plan in the
future. These higher payments are irrevocable and do not
affect the eve of future City contributions. They do not
constitute an asset of the City.
Annual pension cost and changes in the net pension obligation during the year were as
fol. ows:
Annual Required contribution $73,563
nterest on Net Pension obligation 119084
Adjustments to the Annual Required Contribution [27,768]
Annual Pension cost 56,879
Contributions Made 118
ncrease in Negative Net Pension obligation 61,629
Beginning Ba ance, Negative Net Pension obligation 621 ,028
Ending Balance, Negative Net Pension obligation 682
The information below is the most recent data available.
Actuarial valuation date:
Actuarial cost method:
Amortization method:
Remaining amortization period:
Actuarial assumptions:
Investment rate of return
Discount rate for obligations
Projected salary increases
Post retirement benefits
Three -vear Trend Information
Annual
Pension Cost
Year Ended (APC) APC Contributed
12/31198 $95,176 $107,215
12/31/99 $96 $116
12/31100 $96,617 $120,175
1/1/01.
Entry age normal cost method.
Level dollar amount amortized on a
c osed basis.
18 years.
7.5% compounded annua y.
7.5
Not app icab e.
None.
Percentage of
APC
contributed
112.64%
120.65%
124.38%
Negative. Net
Pension
Ob igation
$438,538
$789,400
$621,028
Note 15: Pension Plan Brooklvn Center Fire Department Relief Association (cont'd)
Schedule of Funding Prowess
Re ated Party Investments
As of December 31, 2002, the Association he d no securities issued by the City
or other related parties.
Note 18: Fund chances
The following funds were opened during 2002:
Capital Project:
Earle Brown Heritage center Improvements Fund
Debt Service:
GO Street mprovement Bonds of 2003 Fund
No funds were closed during 2002.
Note 17: cumulative Effect of Chanqe in Accounting Principle
During 2002, the city Counci approved an amended capita asset po icy. This
policy increased the capita ization threshold from $1,000 to $10,000 for
equipment and $250,000 for infrastructure. This change has resulted in the City
adjusting their fined asset isting to on y- inc ude assets that camp y with the
amended policy. The effects of this change for prior years cannot be reasonably
estimated.
The cumulative effect of this change is as follows:
Fund
Municipa Liquor Fund
Co f course Fund
Earl Brown Heritage center Fund
Water Utility Fund
Sanitary sewer Utility Fund
Storm Drainage Uti ity Fund
Central Garage Fund
Total for All Funds
Amount
$9,331
$46,909
$434,061.
$1,614,746
$388,897
$270,059'
$1106,505
$2,870,508
E U196
Actuarial
Excess of
Actuarial Va. ue
Accrued
Assets over
Funded Fiscal
of Assets
Liability
Liability
Funded Ratio
Year
(A)
(B)
(A) -(B)
A1B
1998
$3,055,058
$2,817,530
$438,538
118.8/0
1999
$3,319,342
$2,529,942
$789,400
131.2%
2000
$3,078,103
$2,457,135
$021 ,028
125.3
Re ated Party Investments
As of December 31, 2002, the Association he d no securities issued by the City
or other related parties.
Note 18: Fund chances
The following funds were opened during 2002:
Capital Project:
Earle Brown Heritage center Improvements Fund
Debt Service:
GO Street mprovement Bonds of 2003 Fund
No funds were closed during 2002.
Note 17: cumulative Effect of Chanqe in Accounting Principle
During 2002, the city Counci approved an amended capita asset po icy. This
policy increased the capita ization threshold from $1,000 to $10,000 for
equipment and $250,000 for infrastructure. This change has resulted in the City
adjusting their fined asset isting to on y- inc ude assets that camp y with the
amended policy. The effects of this change for prior years cannot be reasonably
estimated.
The cumulative effect of this change is as follows:
Fund
Municipa Liquor Fund
Co f course Fund
Earl Brown Heritage center Fund
Water Utility Fund
Sanitary sewer Utility Fund
Storm Drainage Uti ity Fund
Central Garage Fund
Total for All Funds
Amount
$9,331
$46,909
$434,061.
$1,614,746
$388,897
$270,059'
$1106,505
$2,870,508
E U196
Note 18: Prior Period Adjustment
Receivables: The fund balance of the Capital Project fund type at December
31,2001 has been restated from amounts previous y reported to correct an error in
the amount reported for Due from other Governments. As a resu t of the
restatement, the city's fund balance at the beginning of the year has been
increased by $419,376.
Fixed Assets: During 2002 the city amended its policy regarding estimated useful
lives of fixed assets. The prior and current estimated usefu Ives are as fo ows:
Asset Type
Water Sewer Mains Lines
Bui dings and Structures
Water We s and Storage Tanks
Sewer Lift Stations
Machinery and Equipment
Furniture and Fixtures
Prior to 2002 2002
99 years
20-40 years
15-50 years
1 5-40 years
5-20 years
5 -20 years
25 years
25 years
25 years
25 years
2 -15 years
5 years
Because of the significance of this change, it was treated as a prior period
adjustment rather than a prospective adjustment. The depreciation expense
reported for 2002 is the amount determined using the revised estimated useful
life. A summary of the prior period adjustment by fund is as fo ows:
Fund
Amount
Golf Course Fund
$5,266
Earl Brown Heritage center Fund
$103,588
Water Utility Fund
$3,588,141
Sanitary Sewer Utility Fund
$2,703,920
Storm Drainage Utility Fund
$43,588
Total for Funds
$6,444,481
Me
City of Brooklyn Center, Minnesota
GENERAL FUND
The City of Brook yn Center Home Rule Charter provides in section 7.11 that "there sha
be maintained in the City Treasury a c assification of Funds which sha provide for a
General Fund for the payment of such expenses of the City as the Council may deem
proper, and such other funds as may be required by statute, ordinance or resolution."
The Genera Fund was established to account for al revenues and expenditures which are
not required to be accounted for in other funds. It has more diverse revenue sources than
other funds. 'these revenue sources include property taxes, licenses, permits, fines and
forfeits, intergovernmenta service charges, and investment earnings. The Fund's
resources finance a wide range of functions, including the current operations of general
government, public safety, public works, health and we fare, recreation, and
non departmental expenditures.
This fund utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the related liability is incurred.
50
City of Brook yn Center
Genera Fund
COMPARATIVE BALANCE SHEET
December 31, 2002
A-1
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $370,407 $508,939
Accrued salaries payable 3609931 335,501
Deferred revenue 289,759 325
Deferred revenue tax abatements 266,343
Total Liabilities 1 ,021 ,097 -1 9 436,532
Fund Balance:
Reserved for advances to other funds 105,074 105,074
Reserved for prepaid expenses 68,279
Unreserved fund balance
Designated:
Working capital 6 1 527 7 973 6
U ndesignated 1 9 228,448 891,145
Total Fund Balance 7 7
TOTAL LIABILITIES AND FUND BALANCE $8,950,871 $8,870,404
51
2002
2001
ASSETS
Cash and investments
$7,937,436
$8,248,964
Accrued interest
$433,944
$120,890
Accounts receivable
63,823
67,160
Delinquent taxes receivable
289,726
263,126
Due from other governments
53
65,190
Prepaid expenses
68,279
Advance to other funds
1 05,074
105
TOTAL ASSETS
$8,950,871
$8,870,404
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $370,407 $508,939
Accrued salaries payable 3609931 335,501
Deferred revenue 289,759 325
Deferred revenue tax abatements 266,343
Total Liabilities 1 ,021 ,097 -1 9 436,532
Fund Balance:
Reserved for advances to other funds 105,074 105,074
Reserved for prepaid expenses 68,279
Unreserved fund balance
Designated:
Working capital 6 1 527 7 973 6
U ndesignated 1 9 228,448 891,145
Total Fund Balance 7 7
TOTAL LIABILITIES AND FUND BALANCE $8,950,871 $8,870,404
51
City of Brooklyn Center
General Fund
COMPARATIVE STATEMENT OF REVENUES, EXPEND TUBES,
AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
A -2
Expenditures
General government
2
2002
112,276
2
Public safety
6
6,184,663
Actual Over
5,660,600
Public works
2
1 9 986,692
(Under)
2001
Community services
Budget
Actual
Budget
Actual
Revenues
2
2
(262
2
Property taxes
$16,658,829
$10,990,660
$331,831
$8,469,023
Property tax abatements reserve
606,582
266,343
$266,343
(57,510)
Licenses and permits
565,485
823,996
258
788,629
Intergovernmental
2
2
73,789
4
Charges for services
605,267
575,748
(29,519)
688,453
Court fines
196,000
278,557
88,557
230
Investment earnings
350,000
211
(138,802)
345
Change in fair value of investments
(5,858)
(5,858)
328,391
Miscellaneous
34,305
106,963
72,658
24
Total Revenues
15,173,726
16
91 7
14
Expenditures
General government
2
2
112,276
2
Public safety
6
6,184,663
(267,315)
5,660,600
Public works
2
1 9 986,692
(90,022)
2
Community services
1 03,419
1 03,491
72
106.,034
Parks and recreation
2
2
(262
2
Economic development
342
340,659.
1,341)
392,805
Non departmental
606,582
366,282
(240,300)
372,056
Administrative Services Reimbursement
(782,684L
(596,541)
186,143
(767,504)
Total Expenditures
13,528
12,965,081
(562,975)
12,615
Excess of Revenues over Expenditures 1,645,670 3
Other Financina Uses
Operating transfers out (1,645,670)
Total Other Financing Uses {1,645,670}
Excess of Revenues and other Financing Sources
Over Expenditures and Other Financing Uses
Fund Balance January 1
Equity Transfers Out
Fund Balance December 31
7,433,872
$7,433,872
1
(1
1,262,245
7,433,872
(766,343)
$7,929,774
1 ,480,485
(218,240
(218,240)
1,262,245
$1,262,245
2,336,706
(1
(1
674,829
7,452,043
(693,000)
$7,433,872
52
S -1
(Continued next page)
City of Brooklyn Center
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 2002
53
2002
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Ad Valorem Taxes
Gross property taxes
$9,938,829
$10
$337,259
$7,635
Penalties and interest
(3,324)
(3,324)
1
Lodging tax
720,000
717,176
(2,824)
826
Special assessments
720
720
4
Total Taxes
1 0,658,829
1 0,990,660
331,831
8
Reserve for Procertv Tax Abatements
Tax abatements under litigation
266,343
266,343
(57,510)
Total Property Tax Abatements
266
266,343
(57,510)
Licenses and Permits
Liquor and beer
99,900
111 9 598
11
1 04,219
Building permits
310,000
475
165,471
497,283
Mechanical permits
50,000
82,341
32,341
77,806
Sewer and water permits
1
1,693
693
904
Plumbing permits
35,000
42,327
7
40,823
Garbage licenses
2
3
200
3
Taxicab licenses
300
600
300
1
Mechanical licenses
4
6
1
61025
Pawn shop licenses
12,000
12,000
12,000
Service station licenses
3
2
(680)
2
Vehicle dealer licenses
2,000
11 1 750
(250)
2,250
Bowling licenses
480
724
240
725
Cigarette licenses
4
2
(1,181)
4
Sign permits
3,000
2
(267)
3
Rental dwelling permits
28,000
69,222
41
24,004
Amusement licenses
1
2
830
1
Dog licenses
4,079
Row permits
5
4
(332)
Miscellaneous business license
2
1 1 730
(770L
2,330
Total Licenses and Permits
565,485
823,996
258
788,629
Intercavernmental
Federal grants:
Miscellaneous grants
5
(5,000)
4
Total Federal Grants
$5,000
($5,000)
$4
53
S -1
(Continued from prior page)
City of Brooklyn Center
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 2002
Miscellaneous
Interest on investments
350,000
2002
(138,802)
345
Change in fair value of investments
(5,858)
Actual over
328,391
Other
34
106
(Under)
2001
Total Miscellaneous
Budget
Actual
Budget
Actual
Intergovernmental (continued)
$15,173,726
$16,091,236
$917,510
$14,952
State grants:
Local government aid
$2,265,267
$2,265
$2
Homestead credit aid
1,380
Police pension aid
250,000
244,840
($5,160)
228
PERA aid
34,365
34
34
Fireperson pension aid
90,000
102,269
12,269
90,148
Police training
14,000
17,393
3
19,166
E-911 phone service
15
19
4
18
Street maintenance aid
30,000
90,000
60,000
90,000
Low income housing aid
64,808
64
87,738
Miscellaneous grants
1,400
5
3,637
2,956
Total State Grants
2
2
78,789
4
Total Intergovernmental
2
2
73,789
4
Charges for Services
General government charges
23,620
40,099
16
39
Public safety charges
16,250
25,468
9
30,760
Recreation fees
565,397
510,181
(55
618,392
Total Charges for Services
605,267
575,748
(29,519)
688,453
Court Fines
Fines
190,000
278
88,557
230,408
Total Court Fines
190
278,557
88,557
230
Miscellaneous
Interest on investments
350,000
211,198
(138,802)
345
Change in fair value of investments
(5,858)
(5,858)
328,391
Other
34
106
72,658
24
Total Miscellaneous
384
312
(72
697
Total Revenues
$15,173,726
$16,091,236
$917,510
$14,952
54
55
S-2
City of Brooklyn Center
(Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING- USES
BUDGET AND ACTUAL
For the Year Ended, December 31, 2002
2002
Actual Over
(Under)
2001
Budget Actual
Budget
Actual
General Government.
Mayor and Council:
Personal services
$47
$45,492
($2
$42,927
Supplies
1,650
754
(900)
891
Services and other charges
77
-79,557
2,442
78 9 828
Total Mayor and Council
128
125,799
(1
122,446
Administrative Office:
Personal services
409
411,578
1
377,646
Supplies
11,250
6,729
(4,521
3
Services and other charges
67,395
41
(26
57
Capital outlay
1
Total Administrative Office
488
459,453
(29,127)
439
Elections and Voter Registration:
Personal services
74,816
50
(24
55,888
Supplies
3
1,077
(1,923)
95
Services and other charges
8
32
24,336.
1,932
Total Elections and Voter Registration
86
83,922
(2
57,915
Assessor's Office:
Personal services
191
181
(10
177
Supplies
41050
5
1
877
Services and other charges
32
28,942
(3 1 559)
31,085
Capital outlay
1
Total Assessor's Office
228,395
215,356
(13,039)
210,812
Finance:
Personal services
442
451
8
436
Supplies
9
5
(3
1,068
Services and other charges
9,450
8,918
(532)
9
Capital outlay
2
Total Finance
461,726
466,141
4
44$,926
Lega
Services and other charges
240
342,716
102,716
262,061
Total Legal
240,000
342,718
102
262,061
Government Buildings:
Personal services
239,649
238
(1,251)
229,959
Supplies
60
70
10,217
86,943
Services and other charges
242
295,866
53,101
386,985
Capital outlay
r
3
Total Government Buildings
$542,739
$604,806
$62,067
$687
55
S -2
56
City of Brooklyn Center
(Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
Actual Over
(Under)
2001
Budget
Actual
Budget
Actual
General Government (continued)
Data Processing:
Personal services
$81 ,837
$83,296
$1,459
$77,436
Supplies
27,520
20,719
(6,801)
10,489
Services and other charges
1 57,528
151 0 218
(6,310)
138,241
Capital outlay
49,976
Total Data Processing
266,885
255,233
(11
275
Total General Government
2
2,553,426
112,276
2,504,392
Public Safety
Police.Protection:
Personal services
4,211,564
4
(62,822)
3
Supplies
136,545
108,223
(28,322)
96,607
Services and other charges
908
746,419
(161,909)
635,792
Capital outlay
56,236
Total police Protection
5
5
(2:53,053)
49555,220
Fire Protection:
Personal services
494,848
405,867
(8
397
Supplies
69
82,699
13,599
41
Services and other charges
204,056
179
(24,600)
183
Capital outlay
20,200
24,999
4,799
43,208
Total Fire Protection
708,204
693,021
(15,183)
665,436
Protective Inspection:
Personal services
364,208
373
9
332,952
Supplies
11
9,338
(1
2
Services and other charges
50
51,797
915
56
Capital outlay
4
Total Protective inspection
426,090
434,786
8,696
396,698
Emergency Preparedness:
Personal services
46,432
40
(5,459)
34,719
Supplies
2
2
36
1,681
Services and other charges
12,415
10,063
(29352)
6,846
Total Emergency Preparedness
61,247
53,472
(7,775)
43,246
Total Public Safety
$6,451
$6,1 84,663
($267
$5,664,600
56
57
S -2
City of Brooklyn Center
(Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December
31, 2002
2002
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Public Works
Engineering Department:
Personal services
$644,406
$421,440
($222,966)
$613
Supplies
27
23,268
(3
3,743
Services and other charges
54
135,059
80,602
33
Capital outlay
a
179825
Total Engineering Department
r 726,063
579,767
(146,296)
668,249
Street Department:
Personal services
665,483
756
91,121
642,978
Supplies
172,900
163,871
(9
163
Services and other charges
512,268
486,450
(25,818)
567,889
Capital outlay
99,268
Total Street Department
1,350,651
1
56,274
1,473,815
Total Public Works
2
1
(90,022)
2,142
Community Services
Social Services:
Service and other charges
103,419
103,491
72
106,034
Total Community Services
103,419
143,491
72
106,034
Parks and Recreation
Administration:
Personal services
403,326
426,786
23,460
378,491
Supplies
35,025
32,019
(3,006)
7,125
Services and other charges
64,250
41,687
(22,563)
47,646
Capital outlay
6,966
Total Administration
502,601
500,492
(2
440,228
Adult Programs:
Personal services
124,092
61
(62
66
Supplies
19,625
30,867
11,242
20,690
Services and other charges
51,050
78
27
97,120
Total Adult Programs
194,767
171,308
(23
184,255
Teen Programs:
Personal services
5
2,606
(3
3
Supplies
600
3
(597)
1,207
Services and other charges
1
870
(430)
997
Total Teen Programs
$7
$3,479
($4,326)
$5 1 878
57
58
S -2
City of Brooklyn Center
(Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2042
2002
Actual Over
(Under)
2001
Budget
Actual
Budget
Actual
Parks and Recreation (continued)
Children's Programs:
Personal services
$84,410
$87,590
$3
$89,889
Supplies
13,102
1 x,874
(2
16,191
Services and other charges
4
4
163
4,555
Total Children's Programs
101,916
103,031
19115
1 10,635
General Programs:
Personal services
30,290
20,291
(9
29,863
Supplies
150
227
77
76
Services and other charges
40,032
35,508
(4,524)
39,150
Total General Programs
70,472
56,026
(14,446)
69,089
Community Center:
Personal services
372,189
311,291
(60,898)
423,075
Supplies
20,600
13
(6,849)
9,266
Services and other charges
70,100
52,380
(17,720)
77,048
Capital outlay
8,844
Total Community Center
462,889
377,422
(85,467)
518,229
Park Maintenance:
Personal services
585,706
503
(82,297)
513,694
Supplies
65,500
42,383
(23,117)
58,335
Services and other charges
297,241
2680859
(28,382)
301,444
Capital outlay
3
Total Park Maintenance
948,447
814,651
(133,796)
876,704
Total Parks and Recreation
2,288,897
2
(262
2
Economic Development
Convention Bureau:
Services and other charges
342,000
340,659
(1,341
3929805
Total Economic Development
342,400
340,659
(1,341)
392,805
NondeQartmental
Expenditures not Charged to
Departments:
Personal services
47,547
2
(45
5,215
Supplies
31,200
30,708
(492)
28
Services and other charges
527,835
333,075
(194,760)
335,8oa
Capital outlay
3,012
Total Nondepartmental
$606,582
$366
($240,300)
$372,056
58
S -2
City of Brooklyn Center (Continued from prior page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2002
59
2002
Actual over
(Under)
2041
Budget
Actual
Budget
Actual
Administrative Service Reimbursement
Charged to other funds
{$782,684}
($596,541)
$186
L$767,504)
Total Administrative Service Reimbursement
(782,684)
(596,541)
186,143
(767,504)
Other Financings Uses
Operating transfers out:
Special Assessment Construction Fund
480
555,000
75,000
409,044
Capital Project Fund
125,000
285,000
160
245,700
Debt Service Funds
1
1
(16,760)
1,007,133
Total Other Financing Uses
1,645,670
1
218,240
11661
Total Expenditures and other Financing Uses
$15,173,726
$14,828,991
($344,735)
$14
59
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The Special Revenue Funds are established to account for revenues derived from taxes and/or other specific
revenue sources. These resources are usually restricted by State statute or by City charter or ordinance to
finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting
period in which they become available and measurable. Expenditures are recognized in the accounting period in
which the related liability is incurred.
Housina and Redevelopment Authority Fund (H. R.A.): This fund has authority to levy an ad valorem property tax
for the purpose of conducting housing and redevelopment projects. These projects are accounted for in the
E.D.A. Fund; all tax proceeds are transferred to that fund.
Economic Development Authority Fund (E.D.A.): This fund was established to account for the Economic
Development Authority (E. D.A. of Brooklyn Center. The E. D.A. carries out development activities; it has authority
to operate an enterprise. The Earle Brown Heritage center operates under this authority and a statement of its
operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and
housing projects, funded by an ad valorem property tax levy and transfers from the C.D.B.G. and H.R.A. funds.
Earle Brown Farm Tax Increment Financina District Fund: This fund has the authority to collect tax increments
which are used for the historic restoration of the Earle Brown Farm and for debt service payments of.bonds which
were issued for the same purpose.
Tax Increment Districts No. 3 and No. 4 Funds: These funds have the authority to collect tax increments which are
used for various redevelopment projects within the city and for debt service payments of bonds which were issued
for the same purpose.
Police Drua Forfeiture Fund: This fund was established to account for property and /or cash seized by Police
Department personnel.
Communitv Development Block Grant Fund (C.D.B.G.).: The fund was established to account for funds received
under Title I of the Housing and Community Development Act of 1 974. Transfers are made from this fund to the
Economic Development Authority Fund; projects are accounted for in the Economic Development Authority Fund.
City Initiatives Grant Fund: Revenues and expenditures from grants received from outside entities are accounted
for in this fund. Grant programs for 2002 include several public safety grants, an after school enrichment
recreation grant and a local planning assistance grant.
W
City of Brooklyn Center
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 2002
ASSETS
Gash and investments
Accounts receivable
Delinquent taxes receivable
Due from other funds
Due from other governments
Prepaid expenses
TOTAL ASSETS
Economic Earle Brown
Development Tax I ncr.
Authority Financing
Fund District
$1,274,889
9,000
Tax
Increment
District
No. 3
$4 36,835
8 $53,734 95
1,1 16,698
504 386
849
$1,294,146 $54,120 $5,349,520
LIABILITIES AND FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable
$5
$395
Due to other funds
$1,116
Due to other governments
Accrued salaries payable
6
1
Advances from other funds
698
Deferred revenue
8,904
53,734
95
Total Liabilities
20,800
1
492,675
Fund Balances (Deficits
Unreserved
1,273,346
1
4
Total Fund Balances (Deficits)
1
(1,814,455)
4,856
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS)
$1,294
$54,120
$5,349,520
61
Tax
9
Increment
Police Drug
District
Forfeiture
No. 4
Fund
$55,398
$58,870
$65,308
$86
86
65,222
55,222
$65,308
$58,870
$58,874
58,870
$58,870
City
Initiatives
Grant Fund
$59,149
$59,'149
$13,911
8,019
14
23,154
45,498
14,051
14
$59,149
B -1
Totals
2902 2991
$5,595,051 $4,696,399
9
9
158,625
13,602
1,115,698
502,447
890
192,952
849
13,602
$6,881,113 $5,414
$414,615 $328
1,116, 698
502,447
8,019
3
7
7
698,147
698,143
181
13,602
2 1
4
3
4
3
$6,851,1113
$5,414,421
62
City of Brooklyn Center
4
8,945
Special Revenue Funds
(1
4,082569
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
2,050
768,293
AND CHANGES IN FUND BALANCE
1 1516
95
For the Year Ended December 31, 2002
17,776
873,119
Housing
797
1
and Economic
Earle Brown
Tax
Redevelopment Development
Tax Increment
Increment
Authority Authority
Financing
District
Fund Fund
District
No. 3
Revenues
Property taxes $194 $5
$815568
$2
Intergovernmental 53,623
Investment earnings 30,280
154,348
Change in fair value of investments (840)
(3,962)
Miscellaneous 49,000
Total Revenues 194,766 138
815,568
2
Expenditures
Personal services
Supplies
Services and other charges
Capital outlay
Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing (Uses) Sources
Sale of land
Operating transfers in
Operating transfers out
Total Other Financing (Uses) Sources
Excess (Deficiency) of Revenues and other
Financing Sources Over Expenditures and
Other Financing Uses
Fund Balances (Deficits) January 1
Fund Balances (Deficits) December 31
1 76
4
8,945
579
(1
4,082569
1 54,052
2,050
768,293
1 1516
95
33'1,139
17,776
873,119
194 (193
797
1
474,648
208,266
(194,766) (1 (570
194, 766) 682 1,410, 000) (570, 000
489
(612,208)
774,276
783,534
(1
4,082569
$0 $1, 273, 346
{$1, 814
$4,856, 845
63
B -2
Tax
Police
(37,153)
City
1,069,922
112,254
Increment
Drug
Community
Initiatives
$65,222
$58,870
District
Forfeiture
Development
Grant
Totals
No. 4
Fund
Block Grant
Fund
2002
2001
$1399675
$3,222,992
$4,144,215
$352
$82,157
487,780
1
1,287
$2
2
190,495
192,359
(35)
(62)
(64)
(4,963)
207,173
27
57,719
1 34,305
113,904
140,907
29,773
$352,000
142,165
4,030,611
6,001,137
4
6
199
210,297
79936
24,946
33
5,813
1 83
338,500
1 36,845
1
1
1,188,882
31
1 07,428
173,024
1 87,939
7,936
338
168,041
1,924,454
3,533,481
(47,032)
21,837
13
{25,875}
21106
2
474,648
572
2082265
1661
(13,504)
(11
(2
(2,136
(13
(11,277)
(1,516,629)
(1,397,734)
(47,032)
21,837
(37,153)
589
1,069,922
112,254
37, 033
511
3,864,347
2
$65,222
$58,870
$0 $14,451
$4
$3,864,347
64
City of Brooklyn Center
Housing and Redevelopment Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE r- BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
Revenues
Property taxes
Intergovernmental,
Total Revenues
Other Financing Uses
Operating transfers out
(Deficiency) Excess of
Revenues Over Other Financing Uses
Fund Balance January 1
Fund Balance December 31
Budget
$191,393
191
197,313
(5,920)
($5;920)
Actual Over
(.Under)
Actual Budget
$1 94,766 $3,373
194,766 3,373
194,766 (2,547)
5,929
$0 $5,920
B -3
2001
Actual
$'147,'123
19,654
166
(166,807)
$0
W
City of Brooklyn center
Economic Development Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
B -4
r•
Actual over
(Linder)
2001
Budget
Actual
Budget
Actual
Revenues
Property taxes
$5
$5,974
$205,694
Intergovernmental
53,623
53
1,1 16,842
Investment earnings
$30,000
30,280
280
39,312
Change in fair value of investments
(840)
(840)
1 00,202
Miscellaneous
49,000
49,000
57,863
Total Revenues
30,000
138,037
108,037
1
Expenditures
Personal services
168
176,508
8,030
197
Supplies
1
579
(1,171)
33
Services and other charges
66,839
154
87,213
1
Capital outlays
1
Total Expenditures
237,067
331,139
94,072
2
Deficiency of Revenues
Over Expenditures
(207
193,102)
13,965
{1,003,610}
Other Financing Sources
Sale of land
474,648
474,648
572,266
Operating transfers in
433
208,266
(225,421)
166
Total other Financing Sources
433,687
682,914
249
739,073
Excess (Deficiency) of Revenues
and other Financing Sources
Over Expenditures
226
489,812
263,192
(264,597)
Fund Balance January 1
783,534
783
1,048,131
Fund Balance December 31
$1
$1
$263,192
$783,534
r•
City of Brook yn Center
Earle Brown Farm Tax Increment Financing District Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
B -5
67
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Property taxes
$785,082
$815
$29,886
$1,035,349
Investment earnings
5
(5,000)
Change in fair value of investments
6,628
Total Revenues
790,682
815
24,886
1,041,977
Expenditures
Personal services
4,210
4
Services and other charges
10,000
2
(7,950)
11657
Interest
11
11,516
30,229
Total Expenditures
1 0,000
1 7,776
7,776
31,886
Excess of
Revenues over Expenditures
780,682
797
17
1
Other Financina Uses
Operating transfers out
(1,410,000)
(1,410,000)
(1
Total other Financing Uses
(1,410,000)
(1 ,410,000)
(1
(Deficiency) Excess of Revenues
Over Expenditures
and other Financing Uses
(629,318)
(612,208)
17
(379,909)
Fund Deficit January 1
(1
(1,202,247)
(822,338)
Fund Deficit December 31
($1,831,565)
($1,814,455)
$17,110
($1,202,247)
67
City of Brooklyn center
Tax Increment District No. 3 Fund
STATEMENT OF REVENUES, EXPEND TURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
Actual Over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Property taxes
$2,216
.$2
($149,448)
$2,502,000
Investment earnings
1 0,000
154,348
144
146,493
Change in fair value of investments
(3,962)
(3
95,775
Total Revenues
2
2
(9
2
Expenditures
Personal services
8
8,945
Services and other charges
155,900
758,293
613,293
507,423
Interest.
.95
95,881
38,445
Total Expenditures
155,000
873,119
718,119
545,868
Excess of Revenues
Over Expenditures
2
1
(727
2
Other Financing Uses
Operating transfers out
(570,000)
(570,000)
(580,000)
Total Other Financing Uses
(570
(570,000)
(580,000)
Excess of Revenues
Over Expenditures
and other Financing Uses
1
7749276
(727,181)
1
Fund Balance January 1
4
4,082
2
Fund Balance December 31
$5,584,026
$4,856,845
($727,181)
$4,0829569
City of Brooklyn Center
Tax Increment District No. 4 Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANCES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
B -7
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Property taxes
$221,912
$1 39,575
($82
$254,949
Investment earnings
5
1 7 257
(3,733)
Change in fair value of investments
(35)
(351
Total Revenues
225
140
(85,905)
254,049
Expenditures
Personal services
4
4
Services and other charges
1 81,530
1 83,923
2
16,713
Interest
1 04,087
Total Expenditures
181 ,530
187,939
2
1 20,800
Excess (Deficiency) of
Revenues over Expenditures
45,382
(47,032)
(88,398)
133,249
Fund Balance (Deficit) January 1
112
112
(20
Fund Balance December 31
$157,636
$65,222
($88,398)
$112
City of Brook yn Center
Police Drug Forfeiture Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES N
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31 2002
2002
o
11-0
70
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Forfeited drug money
$20,000
$27
$7,587
$31 ,950
Investment earnings
2
2,248
2,829
Change in fair value of investments
(6
1
Total Revenues
20,000
29,773
9
36
Expenditures
Supplies
8
7
(64)
1
Services and other charges
2
(2,000)
2
Capital outlays
1 0,000
(10,000)
33,563
Total Expenditures
20
7
(12
37,328
Excess (Deficiency) of Revenues
Over Expenditures
21,837
21,837
(556)
Fund Balance January 1
37,033
37
37,589
Fund Balance December 31
$37,033
$58,870
$21
off
$37
J=
70
City of Brook yn Center
Community Development Block Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
2002
B -9
71
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Intergovernmental:
Federal Grants
$242,294
$352,000
$109,708
$232,308
Total Revenues
242,294
352,000
109,706
232,308
Expenditures
Services and other charges
242,294
338,500
$98
Total Expenditures
242
338,500
96,205
Excess of Revenues
Over Expenditures
13,500
13,500
232,308
Other Financina Sources (Uses)
Operating transfers out
(13,500)
(13,500)
(232,308)
Excess (Deficiency) of
Revenues over Other Financing Uses
Fund Balance January 1
Fund Balance December 31
$0
$0
$0
$0
71
City of Brooklyn Center
City Initiatives Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES N
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 2002
B--10
72
2002
Actual over
(Under)
2001
Budget
Actual
Budget
Actual
Revenues
Intergovernmental
$82
$82
$206,960
Investment earnings
21353
2
3
Change in fair value of investments
(64)
(64)
2
Miscellaneous
$48
57
9,719
24
Total Revenues
48
142,165
94
237
Expenditures
Personal services
8
6,219
(1,781)
12,611
Supplies
24,946
24,946
4,375
Services and other charges
40,000
136,845
96,845
178,169
Capital outlays
78598
Interest
31
31
263
Total Expenditures
48,000
168
120
274
(Deficiency) Excess of Revenues
Over Expenditures
(25,876)
(25,876)
(36,665)
Other Financing (Uses) Sources
Operating transfers out
(11,277)
(1'1,277)
Total other Financing (Uses) Sources
(11,277)
(11,277)
(Deficiency) Excess of Revenues
Over Expenditures
and other Financing Uses
(37,153)
(37,153)
(36,665)
Fund Balance January 1
51,204
51
87,869
Fund Balance December 31
$51,204
$14,051
($37,153)
$51,204
72
City of Brooklyn Center, Minnesota
DEBT SERVICE FUNDS
The Debt Service Funds were established to account for the accumulation of resources for
and the payment of principal and interest on ong -term genera obligation debt other than
revenue bonds and the city's iability for compensated absences.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the principal and interest are due.
The city's Debt Service Funds included in this section are:
General obligation Bonds Fund: This fund is used to account for the accumulation of
resources for payment of genera obligation bonds and interest thereon.
Tax I n creme nt Bonds Fund: This fund is used to account for the accumulation of resources for
payment of tax increment general obligation bonds and interest thereon. These bonds_ were
so d to finance the purchase and redeve opment of the historic Ear a Brown Farm and other
various redeve opment projects within the city.
Special Assessment Bonds Fun This fund is used to account for the accLimu ation of
resources for the payment of special assessment bonds. These bonds were sold to finance
certain public improvements such as residential streets and storm sewers or the provision of
services which are to be paid for wholly or in part from special assessments levied against
benefited property.
73
City of Brook yn Center
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 2002
ASSETS
Cash and investments
U n remitted taxes
Delinquent taxes receivable
Special assessments receivable:
Deferred
Delinquent
TOTAL ASSETS
General Tax Special
Obligation Increment Assessment
Bonds Bonds Bonds
$871,970 $2,212 $2,661,585
11,608
26,931 10,380
3,875,650
4'1,800
$898,901 $2,212,462 $6,601,023
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable
Deferred revenue $26,931
Total Liabilities 26
Fund Balances:
Reserved for debt service 871,970 $2,212
Total Fund Balances 871,970 2 7 212,462
TOTAL LIABILITIES AND
$16,434
3,927,830
3,944,264
2,656,759
2,656,759
C -1
Totals
2002 2001
$5,746,017
1 1,608
37,311
3,875,650
41,800
$9,712,386
$5,460,337
13,803
9,645
3,428,179
92,073
$9,004,037
$16,434
3
761
3,971 ,195
5,741,191
5,741,191
$1,626
3,529,897
3,53'1,523
5,472,514
5,472,514
FUND BALANCES $898,901 $2 $6,601 $9,712,386 $9,004,037
74
C -2
City of Brooklyn Center
Debt Service Funds
COMBINING STATEMENT"' OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 2002
Revenues
Property taxes
Special assessments
Intergovernmental
Investment earnings
Change in fair value of investments
Total Revenues
Expenditures
Principal
Interest
Fiscal agent fees
Total Expenditures
(Deficiency) Excess of Revenues
Over Expenditures
Other Financing Sources (Uses)
Operating transfers in
Total other Financing Sources
Excess (Deficiency) of Revenues and
Other Sources over Expenditures
and other Uses
Fund Balances January 1
Fund Balances December 31
General
Tax
Special
268,677
735,905
Obligation
Increment
Assessment
Totals
4, 736, 609
Bonds
Bonds
Bonds
2002
2001
$'176,000
$928,559
$928
1
$292
292,014
295,745
1 6,439
$23,328
70,332
11 0,099
1 21,235
(456)
(646)
(1
(3
99
307
22,682
996
1
1
680
1
780,000
3
2,805
350
433,893
249
1
1,149,623
1
950
269154
28,712
8
11032
1
1,055,651
4
3
(724,360)
(1
(58
(2
(2,241,228)
764
1
259,168
3
2,977,133
764
1 ,980,000
259,168
3,003
2,977,133
40,382
27,839
200,456
268,677
735,905
831
2,184, 623
2,456, 303
5,472, 514
4, 736, 609
$871
$2,212,462
$2,656
$5,741,191
$5,472,514
75
City of Brook yn Center, Minnesota
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are established to account for a resources used for the
construction or acquisition of capita faci ities by the City except those financed by Enterprise
Funds.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the related liability is incurred.
The City's Capital Projects Funds included in this section are:
Cacita Reserve Emergency Fund: This fund was estab fished in 1997 to account for monies
he d in reserve for catastrophic losses or unforeseen capital items.
Capital Improvements Fund: This fund was estab ished in 1988 to provide funds, and to
account for the expenditure of such funds, for major capital outlays including, but not limited to,
construction or acquisition of major permanent faci ities having a relatively ong life; and/or to
reduce debt incurred for capital out ays. The financing sources of the fund include ad va orem
taxation, transfers from other funds, issuance of bonds, federal and state grants, and
investment earnings.
Municipal State Aid for Construction Fund: This fund was established to account forthe state
allotment of gasoline tax collections used for transportation related construction projects.
Specia Assessment Construction Fund: This fund was estab ished to account for the
resources and expenditures required for the acquisition and construction of capital facilities or
improvements financed wholly or in part by special assessments evied against benefited
properties.
Earle Brown Heritage Center Improvements Fund: This fund was established to provide a
stable source of funds to pay for periodic capital improvements needed at the facility.
76
City of Brooklyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 2002
D-1
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued salaries and wages
Deferred revenue
Total Liabilities
$199,708 $166,592 $805
-1,838
201 207,427
20'1,546 367,942 1,012,456
Fund Balances:
$1,036
Reserved:
Municipal
Advances to other funds
Earle Brown
Unreserved $1,329,490
860
Total Fund Balances 1,329,490
Capital
TOTAL LIABILITIES AND
State Aid
Special
Heritage
Reserve
Capital
for
Assessment
Center
Totals
Emergency
Improvements
Construction
Construction
improvements
Fund
Fund
Fund
Fund
Fund
2002
2001
ASSETS
Cash and Investments
$1,329,490
$1,062,521
$194
$396,043
$100,000
$3,082,308
$6,406
Accounts receivable
1 9 537
1 9 537
2
Special assessments:
Unremitted
7
7
Deferred
155,181
155
198,209
Delinquent
3,837
3,837
1,893
Due from other governments
201
201,350
462,067
Advance to other funds
900,000
593,069
1
1
TOTAL ASSETS
$1,329,490
$1,962,521
$988,673
$564,505
$'100,000
$4,945
$8,614
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued salaries and wages
Deferred revenue
Total Liabilities
$199,708 $166,592 $805
-1,838
201 207,427
20'1,546 367,942 1,012,456
Fund Balances:
$1,036
Reserved:
5,959
Advances to other funds
900,000
Unreserved $1,329,490
860
Total Fund Balances 1,329,490
1,760,975
TOTAL LIABILITIES AND
$8,61406
FUND BALANCES $1,329,490
$1,962,521
$1
$1,036
1
5,959
408,777
6919853
1,581,944
1
593,069
1
1,543
27,662
(447,951) $100,000 '1,870,176
5,337
620,731
(447,951) 100,000 3,363,245
6,580,492
$985
$564,505 $100,000 $4,945,189
$8,61406
77
City of Brooklyn Center
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 2002
Municipal Earle Brown
Capital State Aid Special Heritage
Reserve Capital for Assessment Center
D -2
Expenditures
Personal services
Supplies
Services and other charges
Capital outlay
Interest
Total Expenditures
(Deficiency) Excess of Revenues
Over Expenditures
17,176
Emergency
Improvements
Construction
Construction Improvements
Totals
4,758
20,466
Fund
Fund
Fund
Fund Fund
2002
2001
Revenues
3,983,488
396,277
555,040
7,5'15
58,976 2,596,999
Special assessments
9
5,376,810
$260,752
$260,752
$102
Intergovernmental
$10,400
$918,126
2,487,946
3,416,472
50,000
Investment earnings
$48,520
62,470
27,114
1 5,653
154,757
361,259
Change in fair value of
Fund Balances January 1, as restated
1,083,604
investments
(1
(1,733)
(752)
(421)
(4,252)
426,857
Miscellaneous
$620,731
10,605
3,444
12,843
26,448
12,408
Total Revenues
47,174
81,742
947,488
2,777,773
3,854,177
952,896
Expenditures
Personal services
Supplies
Services and other charges
Capital outlay
Interest
Total Expenditures
(Deficiency) Excess of Revenues
Over Expenditures
17,176
4,942
22,118
266,755
4
57
4,758
20,466
9,850 46,604
112,868
169,322
1
49,126 2,528,518
1,292,551 5,542,027
9
3,983,488
396,277
555,040
7,5'15
58,976 2,596,999
•1,410,361 5,542,084
9
5,376,810
(11,802} (2,515,257) (462,873) (2,764,311
Other Financina Sources
Proceeds from sale of bonds
Operating transfers in
396,277
555
$100,000
Total Other Financing Sources
396,277
555,040
100,000
(Deficiency) Excess of Revenues
and Other Financing Sources
Over Expenditures (11,802)
(2,118,980)
(462,873)
(2,249,311)
100,000
Fund Balances January 1, as previously reported 1,341,292
3,879,955
664,228
995,017
Prior period adjustment
419,375
Fund Balances January 1, as restated
1,083,604
Equity Transfers In
766,343
Fund Balances December 31 $1,329,490
$1,760,975
$620,731
{$447,951
$100 ,000
(5,754,243) {4,424,'! 141
730,040
1 980,244
1,051,277 1,710,244
(4,702,966) (2,113,870)
6,880,492 8,909 ,362
41 9,376
7,299,868
766,343 693,000
$3,363,245 $6,880,492
W �J
City of Brook yn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were estab fished to account for the financing of se f- supporting activities
of the City which render services on a user charge basis to the general pub ic.
Revenues and expenses in these funds are recognized on the accrua basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
objectively measurable. Expenses are recognized in tie period incurred, if objective y
measurable.
The city's Enterprise Funds inc uded in this section are:
Municjpal Liquor Fund: This fund accounts for the operations of the City's municipa off -sale
liquor stores.
Golf Course Fund: This fund accounts for operations of Centerbrook Golf course, a 9 hole,
par 3 course owned by the City.
Earle Brown Heritage Center Fund: This fund accounts for the operation of a convention
center. The Earle Brown Heritage Center is a pioneer farmstead that has been historica y
preserved and restored as a modern multipurpose facility. Its convention center can host
conferences, trade shows, and concerts seating 1 ,000 people in either banquet or theater
style. The facility hosts many meetings, parties, weddings and receptions.
Recycling and Refuse Fund: This fund accounts for the operation of a state mandated
recyc ing program. Expansion into refuse collection wil take place only when there is a clear
advantage to be achieved by it.
Water tlti ity Fund: This fund accounts for the provision of water to customers. Administration,
wells, water storage, and distribution are included.
Sanitary Sewer Fund_: This fund accounts for the collection and pumping of sanitary sewage
through a system of sewer ines and ift stations. Sewage is treated by the Metropo itan
Counci Environmenta Services whose fees represent about 75% of this fund's expenses.
Storm Drainage Fund: This fund accounts for the operations and improvements of the storm
water drainage system. It incorporates not only the storm sewer system, but also water
structures such as ho ding ponds and facilities to improve water qua ity. Fees are based upon
the amount of water running off a property and vary with both size and absorption
characteristics of the parcel.
Street Liqht Utility Fund: This fund was created to account for expenses related to
street ights within the City. Benefitting properties are bi ed for these expenses.
79
City of Brooklyn center
Enterprise Funds
COMBINING BALANCE SHEET
December 31, 2002
E. Brown
Municipal
Golf
Heritage
Recycling
Liquor
course
Center
Refuse
ASSETS
Fund
Fund
Fund
Fund
Current Assets:
r
Cash and investments
$801 9 993
$37,281
$856
$54,501
Accounts receivable net
160
187,596
20,534
Accrued revenue
25,931
Special assessments receivable:
Deferred
Delinquent
Due from other governments
575351
Due from other funds
Inventories
279
7
26,750
Prepaid expenses
12,580
12
Total Current Assets
1 ,287
44
892
1 00,965
Fixed Assets:
Mains and lines
Structures
487
11,091
Equipment
253,003
11,150
45,544
Land
1
1
Land improvements
40,258
327,830
253,003
1
1 2,958,083
Less: Accumulated Depreciation
71,159
128,932
3
Total Net Fixed Assets
181,844
1
9
Total Assets
$1
$1
$10
$100,966
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable
$150,737
$1,329
$341
$1,097
Due to other funds
Accrued salaries payable
15
2
27,129
Accrued interest payable
Deferred revenue
1
Current portion of long -term debt
50
Total current Liabilities
166p612
53,659
370
1
Long -Term Liabilities:
Advances from other funds
850,000
Bonds payable
Total Long -term Liabilities
850,000
Fund Equity:
Contributed Capital
543,725
9
Retained earnings
Reserved:
Debt service
Special assessments
Unreserved
1,156,519
298,120
544,622
99,869
Total Fund Equity
1
941
9
99,869
Total Liabilities and Fund Equity
$1,333,131
$1
$10 9 349,793
$100,965
80
E -1
Street Light
Water
Sanitary
Storm
$558
$841
Utility
Utility
Sewer
Drainage
Totals
Fund
Fund
Fund
Fund
2002
2001
$30,361
$1,541,308
$682,184
$343,221
$4
$3
16,641
171
255
$99
751,810
753,823
25,726
129,676
344,582
1 66,717
692
747,986
1 1,410
222,498
3
12,903
238,856
227,163
52,939
94
53,033
34,269
7,142
450,000
64,493
115
450,000
1
29,315
24,109
5
863,964
337,450
315
1 29
239,540
153,985
132,559
72,728
21149,401
1
622,766
6,449,737
6
61
13,405,200
'12,096,356
11,656,212
37,157,768
359738,550
61,318
3
2,418
10,874
17,328
20
128
179,130
617,505
'1,658, 703
23,093
3
287,158
3,197,342
3,198,551
368,088
491
16
1 4,697
11,943,370
58
61,517,824
8
6
1,016,263
19,094,895
13,371, "122
8
8
10,927
39,574,772
48
$72,728
$1 0
$10
$11,549,873
$46
$54,41 0
$11,410
$28,323
$23,002
$616
$558
$841
21,315
10,313
5,220
60
519961
14,583
14
18
116,588
118,188
21 0
260,000
250,000
1 1,410
155,224
28
225,199
1,012,014
1,1 83,886
850,000
900,000
450,000
450
660,000
450,000
1
1
4,997,510
5
863,964
21,608,205
22,295,175
239,540
239,540
240,100
275,437
3
12,997
291,889
261
61
5,307
4,337,144
9
21
28,870
61,318
10, 580, 043
10, 009, 025
10,874
43, 712,495
51 ,667,052
$72,728 $1 0,735,267 $10,037,247 $11,549,873 $46,024,509 $54,410,938
81
City of Brooklyn Center
Enterprise Funds
COMBINING STA rEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2002
Operatina Revenues
Sales and user fees
Cost of sales
Gross Margin
0peratina Expenses
Personal services
Supplies
Other services
Insurance
Utilities
Rent
Depreciation
Total Operating Expenses
Operating Income (Loss)
Nonweratina Revenues or Expenses(
Investment earnings
Change in fair value of investments
Special assessments
Other revenue
Interest and fiscal agent fees
Total Nonoperating Revenues or Expenses(
Income Before contributions and Operating
Transfers
Capital Contributions
Operating Transfers Out
Net Income (Loss)
Depreciation on contributed assets
that reduces contributed capital
Retained Earnings Jan. 1, as previously reported
Prior period adjustment
Cumulative effect of change in accounting principle
Retained Earnings Jan. 1, as restated
21 2,142
(1 00
E. Brown
Municipal
Golf
Heritage
Liquor
Course
center
Fund
Fund
Fund
$3,435,556
$278,664
$3,480,535
2
27
385,341
841,791
250
3
364, 054
144
1
11,804
29,219
275,360
1 00
36,383
489,964
7
9
34
11 ,828
1 3,758
146,742
158,702
88
35,580
13,045
478,497
689,603
246,320
3
152
4,524
(159,076)
28,169
2
22,553
(667)
(74)
(577)
2,004
(1,098)
29,506
2
2D,878
181
7,123
(138,198)
21 2,142
(1 00
(1 00
81
219,271
(238,198)
686,971
1
131,024
633
(5,266)
(103,586)
(9
(46,909
(434,061)
"1,084,825
78,849
95,849
Recycling
Refuse
Fund
$210,954
21 0,954
21 5,032
179
215,211
(4,257)
2,632
(73)
2,559
(1,698)
(1,698)
101,567
101567
Retained Earnings Dec. 31 $1,1 66,519 $298,120 $544,622 $99,869
82
E -2
Street Light
Water
Sanitary
Storm
utility
utility
Sewer
Drainage
Totals
Fund
Fund
Fund
Fund
2092
2001
$21 3
$1,364,076
$2,664,730
$1,377,638
$13
$1 3,259
3,006
3
213,078
1
2
1
10,018,305
1 0,039, 542
318,567
150,889
100,000
2
2
131,985
14,338
3
465,859
426,605
152,660
310,468
1,791,739
126
3
2
66
1 4,851
4
1,932
68,945
81 ,798
10 1,591
23,728
297,647
370
246,721
226
698,773
565
431
2
1 1 292,168
152,726
1
2
662,747
9
8 57,866
60,352
(208,159)
114,146
714,891
674
1,881,676
993
48,416
43
5
155,176
222
(1
(1,218)
(162)
(4,138)
225
21,178
271
429,873
451,322
290
610
2
4
(36,701)
(37,799)
(55
966
68,864
42
398
567,175
688,971
61,318
(139
157,096
121 13
1,241 ,784
2,570,647
2'12,'142
(200,000)
(325
61
(139,295)
157,096
1,113,738
1
2,245,147
686,971
323,422
10,924,715
7
9
29,371,877
26,803,308
(3,588,'141)
(2
(43,568)
(6
(1,6'14,746)
(388,897)
(270,059)
(2,764,003)
5 t 828
4,183, 503
8
20,163, 393
26, 803, 308
$61
$5,582
$4,340
$10,010,710
$22
$29 ,877
83
City of Brooklyn Center
Enterprise Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2002
Non cash items:
Change in fair value of investments .($667) ($74) ($577) ($73)
Capital contribution $212,142
84
E. Brown
Municipal
Golf
Heritage
Recycling
Liquor
Course
Center
Refuse
Cash flows from oceratina activities:
Fund
Fund
Fund
Fund
Operating income (loss)
$152,188
$4
($159,076)
($4,257)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation
35,580
13,045
478,497
Changes in assets and liabilities:
Receivables
55,540
807
56
(2
Inventories
(20
3
(1
Prepaid expenses
(3
(7,200)
Payables
22,330
(8,394)
(46
472
Accrued expenses
3,898
(385)
4,620
Accrued interest payable
Other nonoperating income
2
Net cash provided by (used for)
operating activities
247,882
13,165
324
(6,292)
Gash flows from noncapital financing activities:
Proceeds from i nterfu nd paya bl eslreceiva bi es
Principal repayments on long term debt
Principal repayments on advance
(50
Interest paid to other entities
(1
Operating transfers out
(100,000)
(100,000)
Net cash used for noncapital
financing activities
(100
(50,000)
(101
Cash flows from capital and related
financing activities:
Acquisition and construction of capital assets
(11,161)
Principal paid on revenue bonds
Interest paid on revenue bonds
Net cash used for capital and related
financing activities
(11.
Cash flows from investing activities:
Investments purchased
(716
(33, 004)
(597
(48,839)
Investments sold or matured
294,392
34,677
209
26,533
Interest on investments
28,169
2
22
2
Net cash (used for) provided by
investing activities
(393
4,352
(365,096)
(19,674)
Net (decrease) increase in cash and
cash equivalents
(245,637)
(43
(141,440)
(25
Cash and cash equivalents at
beginning of the year
381,151
50,340
254,639
35
Cash .and cash equivalents at
end of the year
$135,514
$6
$113,199
$9,243
Non cash items:
Change in fair value of investments .($667) ($74) ($577) ($73)
Capital contribution $212,142
84
E -3
Street Light
Water
Sanitary
Storm
Utility
Utility
Sewer
Drainage
Totals
Fund
Fund
Fund
Fund
2002
2001
$60,352
($208,159)
$114
$714,891
$674,609
$1 9 676
698,773
565,185
431,006
2,222,086
1
(42,367)
3,806
(10,419)
(2,271)
58,778
(52
(1,977)
(20,684)
80,515
(1 0,943)
(21,426)
(9
11
(76
38
(12,384)
(1 08,911)
(377
(984)
1
8
(109,006)
(4,250)
(4
(3,962)
21 9 788
271
429,873
453,936
295,747
29,395
437,240
660,035
1,556,865
3
2,997,581
(21,315)
(21,315)
(63,321)
(56,302)
(56
(56,302)
(50,000)
(509000)
(1,098)
(1,972)
(200,000)
(325,500)
(56,302)
(21,315)
(328
(497,095)
(650
(1 023, 781
(961, 302)
(2
{2,545,415}
(200
(200,000)
(19o,000)
(36,701)
(36
(53,166)
(650,253)
(1
(1
(2
(2,788581)
(27
(1
(611
(307
(3
(99,636)
1
797,205
440,271
22,387
1
1
993
48,416
43
5,837
155,176
222,410
(24
(5359571)
(127,148)
(279,342)
(1
1
5
(804,886)
(490,894)
58,205
(1,689,114)
11569,380
1 9 066,268
606
2,394,189
824,809
$5
$261,382
$115,688
$58,205
$705,075
$2,394,189
($27)
($1,340)
($1,218)
($162)
($4
$225,952
$212,142
85
City of Brook yn Center, Minnesota
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement basis, for the financing
of goods or services provided by one department to other departments of the city.
Revenues and expenses in these funds are recognized on the accrual basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
measurable. Expenditures are recognized in the accounting period in which they are incurred.
The City's Internal Service Funds included in this section are:
Public E m plovees compensated Absences Fund: This fund accounts for payment of unused
vacation and sick eave time and the a ovation of such costs to user departments.
Public Emplovees Retirement Fund: This fund accounts for certain health care insurance
benefits for City employees who retire before age 65. Substantia y all of the city's fu -time
police and fire employees and a I other fu -time errip oyees hired before Ju y 1, 1989 may be
e igible for those benefits from the time they qualify for an unreduced PERA pension until they
reach age 65 or become a igible for Medicare. In the event that future costs would exceed
earnings, other funds would be charged for the costs associated with their employees.
Central Garage Fund: This fund was estab ished to account for the acquisition and
maintenance of all City vehic es and rolling stock equipment. Vehicle and equipment
maintenance, repair, and .replacement will be provided from rental rates which the Centra
Garage charges City operating departments for use of the equipment.
F4091
City of Brooklyn Center
Internal Service Funds
COMBINING BALANCE SHEET
December 31, 2002
Public
Employees Public
ASSETS
Current Assets:
Cash and investments
Accounts receivable
Inventories
Total Current Assets
Fixed Assets:
Equipment
Less: Accumulated depreciation
Total net fixed assets
TOTAL ASSETS
F -1
Compensated
Employees
Central
Current Liabilities:
24,674 25,376
Absences
Retirement
Garage
Totals
Accrued salaries payable
Fund
Fund
Fund
2002
2991
$741,038
$1,574,666
$4,198,486
$6,514,190
$6,365,936
5,935
3
9
1 0,379
714,914
1
15,461
15,461
13,258
741,038
1
4
6,538,869
6
Debt Service Funds
5
5
5
3
3
3
2 2 2,866,874
$741 $1,580 $6,922,180 $9,243,819 $9,256
LIABILITIES AND FUND EQUITY
$1 6,066
7,719 7,719
Current Liabilities:
24,674 25,376
25,067
Accounts payable
733,221
$702
Accrued salaries payable
2
2,282,902
Total Current Liabilities
478,956
702
Long -term Liabilities:
Accrued vacation and- sick pay
$714,914
Accrued health insurance liability
1
Total Long -term Liabilities
714,914
1
Fund Equity:
Contributions:
General Fund
Debt Service Funds
Capital Projects Funds
Enterprise Funds
General Fixed Asset Account Group
Total- Contributions
Retained Earnings:
Unreserved
26,124
30,218
Total Fund Equity
26,124
39,218
TOTAL LIABILITIES AND FUND EQUITY
$741,038
$1,580,601
$1 6,955 $1707
$1 6,066
7,719 7,719
9,001
24,674 25,376
25,067
714,914
733,221
1
1,549,681
2
2,282,902
776,657
776,657
803
1,091,766
1
1,128,825
6
6
6
480,959
484,959
497
478,956
478,956
495,213
2 2 2,931,171
4,062
4
4,017,307
6
6,953,848
6
$6,922,180
$9,243,819
$9,256,447
87
F -2
f
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2002
Public
Employees Public
Compensated Employees
Central
Absences Retirement
Garage
Totals
Fund Fund
Fund
2002
2001
ooeratina Revenues
Billings to departments
$1,104,873
$1,104,873
$1,069,164
Sales
$1,652
12
13
15
Total Operating Revenues
1,652
1
1,118
1,085
0peratina E xpen s e s
Personal services
25
251,264
277,160
409,406
Supplies
222,228
222,228
250
Other services
106,183
1 06,183
65
Insurance
52,326
52
51,788
Utilities
3
3,688
2,629
Depreciation
570,105
570,105
552,091
Total operating Expenses
25,896
1
1,231 ,690
1,331 ,584
Operating (Loss) Income
(24,244)
(88,622)
(112
{246,538}
Nonooeratinp Revenues [Excensesl
Investment earnings
$26,869 56,016
148,268
231
277,381
Change in fair value of investments
(745) (1
(4
(6,412)
265
Total Nonoperating Revenues (Expenses)
26,124 54,462
144,155
224,741
542
Net Income (Loss)
26,124 30,218
55,533
111,875
296,282
Depreciation on contributed assets that
reduces contributed capital
95,228
96,228
?3,055
Retained Earnings January 1, as previously reported
4,017
4
3,647,970
Cumulative effect of change in accounting principle
(1 06,505)
{106,505L
Retained Earnings January 1, as restated
3
3
3,647,970
Retained Earnings December 31
$26,124 $30,218
$4,062,563
$4
$4,017,307
f
City of Brooklyn Center
Internal Service Funds
COMBINING STA "fEMENT OF CASH FLOWS
For the Year Ended December 31, 2002
Public
Employees Public
F -3
Compensated Employees Central
Absences Retirement Garage Totals
Fund Fund Fund 2002 2001
Cash flows from operating activities:
Operating loss ($24 ($88 ($112 ($246,538)
Adjustments to reconcile operating
loss to net cash (used for) provided by
operating activities:
Depreciation
Changes in assets and liabilities:
Accounts receivable
lnventorles
Accounts payable
Accrued salaries and leave
Accrued health insurance liability
Net cash (used for) provided by operating activities
Cash flows from capital and related
financing activities:
Acquisition of fixed assets
Proceeds of sale of fixed assets
Net cash used for capital and related financing activities
Cash flows (used for) provided by investing activities:
Investments purchased
Investments sold or matured
Interest on investments
Net cash (used for) provided by investing activities
Net (decrease) increase in cash
and cash equivalents
Cash and cash equivalents at beginning
of the year
Cash and cash equivalents at end of
the year
Non cash items:
Change in fair value of investments
(299,342) (642,868) (1,725,545) J2,667,7551 2
(317 (666 (1 (2,744 2 ,265
443,317 933,257 2 3,848,946 1
$125,668 $267,039 $711 ,997 $1,1 04 $3,84(~3,946
($745) ($1,554) ($4 ($6,4121 $265,439
16M
570,105
570
552,091
329
832
1 1 161
(2
(2
(2
(1,985)
565
1
1
($18,307)
(1
(19589)
702,957
126,438
(18,307)
(23,350)
479,856
438,199
1,130,540
(619,371)
(619,371)
(430
104
10085
(514
(514,686)
(430,004)
(664,056)
(1
(3,762,333)
(5
(430,647)
337,845
712,201
108,520
2
2,193,995
26
56,016
148,268
231,153
277,381
(299,342) (642,868) (1,725,545) J2,667,7551 2
(317 (666 (1 (2,744 2 ,265
443,317 933,257 2 3,848,946 1
$125,668 $267,039 $711 ,997 $1,1 04 $3,84(~3,946
($745) ($1,554) ($4 ($6,4121 $265,439
16M
City of Brooklyn Center, Minnesota
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group was established to account for the City's fixed assets
which are not accounted for in an enterprise fund, are tangible in nature, have a ife onger
than the current fisca year, and have a significant va ue. Depreciation is not recorded on
those assets.
S -6
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL F XED ASSETS BY SOURCE
For the Year Ended December 31, 2002
January 1,
2002
Balance
December 31,
2002
Acquisitions Adjustments* Balance
Investments in Genera Fixed Assets
Land $3,646,639
Buildings and improvements 17
Park improvements 3
Furniture 1
Departmental equipment 1,194,499
Total investments in General
Fixed Assets $28,006,847
$347,726 $3,298,904
$2,282,032 1 9 651,469 18,525
218,064 1 2
1,299,232 0
25,699 874,452 345,746
$2 $5,456,781 $25
Sources of Investments
Genera indebtedness
$1111
General Fund revenues
7
Liquor store income
579,843
Contributions
403,247
Capital projects funds
6
Federa grants
777,834
$1,115,436 $10,211 ,111
$25,699
7
436,836
143
403,247
0
2,500 2
6,725,125
777,834
0
Total Sources of Investments $28,006,847 $2,525,795 $5,456,781 $25,075,861
1
All adjustments were due to new asset thresholds established January 1, 2002.
0-1
S -7
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 2002
92
Buildings and
Furniture and
Function
Land
rnprovements
Improvements
Equipment
Tota
General government
$1,285,473
$2,604,727
$38,266
$3,928,491
Public safety
11 6
9
242,656
9,691 ,609
Public works
80,124
2 20,397
29,066
2
Recreation
75
4 24,881
$21 5,075
35,738
4 1 436
Parks
1 2 740 9 761
143,012
2 9 066
4
Totals
$3,298,904
$18
$2,906
$345,746
$25
92
S -8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 2092
Totals $28,006,847 $2,525,795 $5,456,781 $0 $25,075,861
All adjustments were due to new asset thresholds established January 1, 2002.
Reclassifications were used to move assets to their functional areas in preparation for GASB 34
implementation.
-OX
General Fixed
General Fixed
Assets
Assets
January 1,
December 31,
Function
2002
Additions
Adjustments*
Reclassed
2002
General government
$1,590,107
$357,277
$2,695,661
$3,928,491
Government buildings
18,188,090
$1,869,718
1
(18,407,591)
Public safety
1
25,699
975,365
9
9
Public works
218
189,081
2
2
Recreation
250,892
581,806
215,154
3
4,451,435
Parks
6
48,572
2
49574,839
Totals $28,006,847 $2,525,795 $5,456,781 $0 $25,075,861
All adjustments were due to new asset thresholds established January 1, 2002.
Reclassifications were used to move assets to their functional areas in preparation for GASB 34
implementation.
-OX
City of Brooklyn Center, Minnesota
GENERAL LONG-TERM DEBT ACCOUNT GROUP
The General Long -Term Debt Account Group was estab !shed to account for the City's
unmatured genera ob ration long -term debt that is secured by the full faith and credit of the
City and is not the primary ob igation of an Enterprise Fund of the City.
94
G
City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG- TERM DEBT
December 31, 2002
December 31,
2002 2001
Amounts Available and to be Provided
Amounts Available in Debt service Funds $5,741,191 $5,472,514
Amounts to be Provided:
From future property tax levies
5
5
From future gas tax allocations
1
1,345,000
From future tax increments
3
5
From future special assessments
2
3,693
Total Amounts Avai able and to be Provided
$18,945,000
$21 ,949,153
General Lona- -Te Debt Pavable
General obligation bonds $7,425,000 $8,105,000
Other long term liabilities 4
Tax increment bonds 6 7
General obligation special assessment bonds
with governmenta commitment 5 0
Total General Long -Term Debt $18,945,000 $21
r� `r
Year
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
City of Brooklyn Center
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2002
General Obligation Bonds
Principal
Interest
$705,000
$322
740
292,318
775,000
260,374
810
226,412
540
196
565,000
171,219
595,000
144,100
625
115,274
655,000
84,710
690,000
52,257
725,000
17
$7,425,000
$1 9 883,422
Tax Increment Bonds
Principal
Interest
$1
$340,413
1
237,302
360
171,123
360,000
147
385,000
122
385,000
96,694
400,000
70,209
415
42,694
425,000 14,344
Special Assessment Bonds
Principal
Interest
$870,000
$222
860,000
184,960
860
146,455
755,000
109
665,000
77,525
495,000
51
390,000
31,145
280,000
15,564
130,000
5,866
65,000
1
$6.,150, 000 $1,242,717 $5 $846,552
Total Debt
Service Requirements
Principal Interest
$3,220
$885,365
3, 375, 000
714
1
577,952
1 9 925,000
483
19590,000
396,750
1,445
319,078
1,385
245,445
1
173,532
1,21 4
1 04
755,040
53,687
725
179762
$18
$3,972
rr
City of Brooklyn Center, Minnesota-
STATIST CAL SECTION
The statistical section presents comparative statistical data for the past ten years, and other
pertinent information involving taxes, revenues, expenditures, bonded debt, property
valuations, insurance coverage and mince laneous statistics.
Tits information is intended to be usefu and of interest to investors in City b financia
institutions, and others interested in municipa government financia statistics.
97
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104
TABLE 7
City of Brooklyn Center
RATIO OF NET BONDED DEBT
TO ASSESSED VALUE AND
NET BONDED
DEBT PER CAPITA
Last Ten Fiscal Years
(Unaudited)
Less:
Ratio of
Amounts
Net Bonded
Net
Tax
Gross in Debt
Net
Debt to Tax
Bonded
Fiscal
Estimated
Capacity
Bonded Service
Bonded
capacity
Debt Per
Year
Population
Value
Debt Ll) Fund
Debt
Value
Capita
1993
28,533
$21,563,01.7
0.00%
1994
28,484
21
0.00%
1995
28
21,317,771
0.00%
1996
28
29,815,317
0.00%
1997
28,515
19,329
$7 $82,056
$7
40.45%
$274.17
1998
28,535
18,903,047
7 616,778
7
38.53%
255.24
1999
28
20
7,575 725
6,849,132
33.59%
240.03
2000
29,172
20, 924, 328
7 72 5, 930
6
30.82%
221.07
2001
29,172
18,357
6 831
5
32.29%
203.22
2002
29,172
18
6 871,970
5,453,030
29.02%
186.93
Source:
City Finance Department and Hennepin
County records
(1)
Amount does not include tax increment, state aid street, special assessment,
or revenue bonds.
104
Table 8
City of Brooklyn Center
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2002
(Unaudited)
Market Value
Debt imit, 2% of market va ue
Total bonded debt
Deductions (See Note 0
Bonds:
1. Special Assessment Bonds
2. State Aid Street Bonds
3. Tax Increment Bonds
4. Uti ity Revenue Bonds
Total Deductions
Total Debt Applicable to Debt Limit
Legal Debt Margin, December 31, 2002
Source: City Finance and Assessing Department records
$1,873,8'12,000
33
19,605,000
5,370,000
1,100, 000
0,1 50,000
660,000
13,280,000
5,325,000
$27,151,240
105
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TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDI'I "URES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Total
General Fund
Expenditures
$9,707,525
9,942,058
1 0,559,497
10, 908, 340
11,739,733
12, 695, 972
13, 363, 091
13,825,030
14,277,342
1 4
Source: City Finance Department records
(1) Amounts for 1996 are higher because of the defeasance of the Tax
Increment Bonds of 1985.
Debt Service
as a Percent
of General
Expenditures
29.84%
18.71%
18.00%
57.13%
18.33%
19.93%
25.51%
37.99/0
27.70%
27.20%
107
Total
Debt
Year
Principal
interest
Service
1 993
$1,710,000
$1,186,535
$2,895,585
1994
780
1
1
1995
825,000
1,075
1,900
1996(1)
51125,000
1
6,231,661
1997
1
1
2,152, 128
1998
1
11244
2
1999
2
1
3
2000
3,970,000
1
5
2001
2
1,149,623
3
2002
3,000,000
1,034,139
4
Total
General Fund
Expenditures
$9,707,525
9,942,058
1 0,559,497
10, 908, 340
11,739,733
12, 695, 972
13, 363, 091
13,825,030
14,277,342
1 4
Source: City Finance Department records
(1) Amounts for 1996 are higher because of the defeasance of the Tax
Increment Bonds of 1985.
Debt Service
as a Percent
of General
Expenditures
29.84%
18.71%
18.00%
57.13%
18.33%
19.93%
25.51%
37.99/0
27.70%
27.20%
107
TABLE 11
City of Brooklyn Center
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
(Unaudited)
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service
Storm Drainaae Fund
1993 $639,837 $28,138 $667,975 $160,044 $507,931 $0 $0 $0 N/A
1994 685,011 39,930 724,941 211,425 513,516 0 30,208 30,208 17.00 :1
1995 788,897 72,881 861,778 184,990 676,788 0 90,625 90,625 7.47 :1
1996 822,980 47,363 870,343 204,969 665,374 110,000 86,390 196,390 3.39 :1
1997 856,920 130,651 987,571 198,662 788,909 155,000 79,754 234,754 3.36 :1
1998 940,012 916,860 1,856,872 199,694 1,657,178 165,000 72,227 237,227 6.99 :1
1999 999,867 1,257,928 2,257,795 156,562 2,101,233 170,000 64,193 234,193 8.97 :1
2000 1,074,619 313,068 1,387,687 154,183 1,233,504 180,000 59,144 239,144 5.16 :1
2001 1,129,502 280,740 1,410,242 157,110 1,253,132 190,000 53,166 243,166 5.15 :1
2002 1,377,638 435,548 1,813,186 231,741 1,581,445 200,000 36,701 236,701 6.68 :1
Source: City Finance Department records
(1) Excludes depreciation and interest on bonds.
0
00
TABLE 12
City of Brooklyn Center
PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
(Unaudited)
Building Permits Commercial New Residential
Issued Construction Construction Property Value
Year Number Estimated Cost Value Units Value Commercial Residential Non - Taxable
1993 520 $11,437,250 $7,598,108 7 $505,000 $322,295,300 $668,059,900 $108,955,700
1994 607 13,418,453 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200
1995 603 11,948,205 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200
1996 607 16,647,400 12,527,095 18 1,126,000 284,786,600 703,806,700 108,473,400
1997 796 18,274,806 10,905,475 3 225,000 287,163,000 722,917,000 111,226,700
1998 1,482 23,216,525 14,261,800 4 612,900 314,457,700 770,883,400 152,964,200
1999 1,745 44,188,569 10,528,100 7 679,600 333,929,200 832,334,600 155,999,500
2000 1,299 20,450,844 13,254,213 3 311,800 358,293,500 837,022,400 164,002,100
2001 956 63,947,218 10,750,000 4 464,000 367,026,000 970,653,400 165,437,000
2002 976 58,089,510 18,680,014 10 1,335,000 529,390,100 1,130,494,300 163,517,000
Source: City Finance, Assessing and Community Development Department records
0
TABLE 13
City of Brooklyn Center
PRINCIPAL TAXPAYERS
December 31, 2002
(Unaudited)
Percentage
2002 of Total
Market City Market
Taxpayers Type of Business Valuation Value
Talisman Brookdale, LLC Shopping Center $45,000,000 2.69%
Target Stores Retail 20,670,000 1.23%
BCC Associates, LLC /Reliastar Office 13,570,000 0.81%
Regal Cinemas, Inc. Theater 11,500,000 0.69%
Brookdale Corner, LLC Retail 9,800,000 0.59%
Hennepin County Hotel Association Hotel 9,750,000 0.58%
TLN LA NEL Apartment 13,188,000 0.79%
Sears Roebuck and Co. Department Store 7,548,500 0.45%
DJS Holdings, Inc. Industrial 7,652,000 0.46%
Wickes Furniture Company Industrial 7,190,000 0.43%
Total Market Value $145,868,500 8.71%
TOTAL CITY MARKET VALUE $1,673,812,000
Source: City Assessing Department records
110
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 2003
(Unaudited)
Policy Period
Tvpe of Coverage and Details From To Liability Limits
I. Statutory Liabilitv to Emr)lovees
a. Workers' Compensation 04 -01 -02 04 -01 -03 Statutory
(participant in the League of
Minnesota Cities Insurance Trust Self -
Insured Workers' Compensation Program)
II. Liabilitv to the Public
a. Comprehensive general liability includes the following additional coverages:
(a) All employees as additional insureds
(b) Personal injury coverage to include false arrest, libel, slander, wrongful
entry or eviction, or invasion of right of privacy.
(c) Broad contractual liability
(d) Products liability
(e) Public Officials' liability
(1) Bodily injury 04 -01 -02 04 -01 -03 $1,000,000 occurrence
(2) Property damage 04 -01 -02 04 -01 -03 $1,000,000 occurrence
(3) Personal injury 04 -01 -02 04 -01 -03 $1,000,000 occurrence
b. Automobile liability,
comprehensive 04 -01 -02 04 -01 -03
(1) Bodily injury $1,000,000 occurrence
(2) Property damage $1,000,000 occurrence
(3) Uninsured motorist $1,000,000 occurrence
C. Liquor stores' dram shop 01 -01 -02 01 -01 -03 $1,000,000 occurrence
$1,000,000 annual aggregate
d. Golf Course and Central Park 01 -01 -02 01 -01 -03 $1,000,000 occurrence
liquor liability $1,000,000 annual aggregate
e. Personal accident, Volunteers 01 -01 -02 01 -01 -03 $100,000 accidental death
$100,000 permanent impairment
$400 /week short-term disability
$1,000 medical
$500,000 per accident
111
City of Brooklyn Center
SCHEDULE OF INSURANCE COVERAGE
Effective January 1, 2003
(Unaudited)
Type of Coverage and Details
Policy Period
From To
III. Insurance on City Property 04 -01 -02 04 -01 -03
a. Public and institutional property,
all risk, blanket $38,437,934; $1,000
deductible replacement value on buildings.
(1) Civic Center
(2) East Fire Station
(3) West Fire Station
(4) Municipal Service Garage
(5) Elevated Water Towers 3 locations
(6) Park Shelter Buildings -17 locations
(7) Pump Houses -10 locations
(8) Lift Stations -10 locations
(9) Meter Station
(10) Storage Building
(11) Outdoor lighting systems 7 locations
(12) Leased Liquor Store
(13) Pedestrian Bridge 2 locations
(14) Picnic Shelters (4)
(15) Earle Brown Heritage Center
(16) Centerbrook Golf Course Club House
(17) Centerbrook Golf Course Garage
(18) Lions Park Concession Stand
(19) Police Station
(20) Centerbrook Golf Course Maintenance Building
(21) Centerbrook Golf Course Property in the Open
b. Boiler and machinery 04 -01 -02 04 -01 -03
C. Automotive physical damage 04 -01 -02 04 -01 -03
(1) Comprehensive
(2) Collision
IV. Criminal Acts
a. Faithful performance blanket position
b. Money and securities (broad form)
C. Depositor's forgery
Table 14
(Continued from prior page)
Buildings,
Structures,
and Contents
(Replacement
Cost)
$1 D,427,178
$1,551,125
$3,339,000
$3,344,830
$4,'186,407
$1,608,825
$1,098,161
$1,339,434
$19,462
$509,245
$345,984
$477,000
$1,295,278
$144,372
$11,884,287
$403,288
$49,736
$43,460
$5,618,000
$210,000
$106,000
Liability Limits
$5,000,000 per accident
ACV $1,000 deductible
ACV $1,000 deductible
$500,000 per occurrence
Various
$100,000
112
City of Brooklyn Center
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(Unaudited)
TABLE 15
113
School Enrollments (4)
City
No. 286
Fiscal
Unemployment Mpls -S #.Paul
No. 11
No. 279
No. 281
Earle
Year
Population (1)
Rate (2)
C.P.I. (3)
Anoka
Osseo
Robbinsdale
Brown
1993
28,533
5.1%
4.4%
37
29,998
13
1
1994
28,484
3.4%
3.2%
38
21,216
14,072
1,875
1995
28,463
3.1%
2.9%
39,152
21
13,595
11658
1996
28,502
3.0%
3.1%
39,874
21,664
14,099
1
1997
28,515
2.3%
2.5%
40,402
21,992
14,010
1
1998
28,535
1.9 0
2.0%
40,923
22,028
13
1,788
1999
28,535
2.4%
2.2%
40,964
22,171
13,800
1
2000
29
3.0%
2.6%
41,314
22
13,706
1,682
2001
29,172
3.9%
3.3%
41,419
22,041
13,754
1
2002
29,172
4.8%
4.2%
41,383
21,824
13,656
1
(1)
Source: Metropolitan Council
(2)
Source: Minnesota Department of
Economic Security; average rate for the past year
(3)
Source: U.S. Bureau of Labor
(4)
Source: Minnesota
Department of
Children, Families Learning (Brooklyn
Center has parts of
these four Districts within the City)
113
City of Brooklyn Center
MISCELLANEOUS STATISTICAL FACTS
December 31, 2002
(Unaudited)
Date of incorporation
Date of adoption of City Charter
Date City Charter effective
Form of government
Fiscal year begins
Area of City
Miles of streets:
City
County
State
Miles of sidewalks
Miles of trails
Miles of storm sewers
Number of street lights: owned by N.S.P
Owned by City
City employees as of December 31, 2002
Authorized regular full -time
Temporary or part -time
Total
Fire protection:
Number of stations
Number of full -time employees
Number of voiunteer firefighters
Police protection:
Number of stations
Number of sworn police officers
Number of other full -time employees
Number of part -time employees
TABLE 16
(Continued
next page)
February 14, 1911
November 8, 1966
December 8, 1966
Council- Manager
January 1
8 1/2 square miles
105,856
6.49
10.79
34.8
11.2
84.02
915
172
160
250
410
2
34
1
45
15
9
114
City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 2002 prior page)
(Unaudited)
Parks and Recreation:
Park property totals 527 acres developed to serve a wide variety of
recreational interests. The areas include playlots, playgrounds, playfields,
trails, nature areas and an arboretum.
Archery range
1
Playgrounds
20
Park shelters
9
Picnic shelters
10
Ice skating rinks
13
Hockey rinks
6
Softball diamonds
19
Baseball diamonds
5
Tennis courts
14
Basketball courts
19
Football /soccer fields
3
Municipal water plant:
Number of connections
6
Average daily consumption in gallons
3
Peak daily consumption in gallons
6
Plant capacity gallons per day
1 7,652,000
Miles of water mains
115
Number of fire hydrants
974
Number- of wells
9
Number of elevated reservoirs
3
Storage capacity in gallons
3
Water rate per thousand gallons
$0.98
Municipal sewer plant:
Number of connections 8
Miles of sanitary sewer 1 05.61
Daily disposal capacity in gallons 10,938
Number of lift stations 10
Residential rate per quarter $52.50
Municipal liquor stores (Off- sale):
Number of leased stores 1
2002 sales $3,435,556
Elections:
Last general election November 5, 2002
Registered voters
16
Votes cast
10,678
Percentage of registered voters voting
64.03%
Last municipal election November 5, 2002
Registered voters
16
Votes cast
10
Percentage of registered voters voting
64.03%
115