HomeMy WebLinkAboutCAFR-1998 COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1998
Michael J. McCauley, C�ty Manager
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Prepared by
THE DEPARTMENT OF FINANCE
Charies Hansen, Director
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(Member of Government Finance Officers
Association of the United States and Canada
Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1998
TABLE OF CONTENTS
Exhibit Page
Number Number
Title Page
I. INTRODUCTORY SECTION
Table of Contents i- vi
City O�cials
Organization Chart 2
City Manager's Letter 3,
Letter of Transmittal 4- 14
Certificate of Achievement 15
II. FINANC;IAL SECTION
Independent Auditors' Report 16 17
A. General Purpose Financial Statements
(Combined Statements Overview):
Combined Balance Sheet All Fund Types and
Account Groups 1 19 20
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances All Governmental
Fund Types 2 2�
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances Budget And Actual
General and Special Revenue Funds 3 22
Combined Statement of Revenues, Ex enses and
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Changes in Retained Earnings Proprietary
Fund Types 4 23
Combined Statement of Cash Flows
Proprietary Fund Types 5 24
Notes to Financial Statements 25 49
Re uired Su lementa Sch
q pp ry edule Year 2000 50 52
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1998
T
ABLE OF CONTENTS
Statement/
Schedule Page
Number Number
B. Combining, Individual Fund and Account Group
Financial Statements and Schedules:
General Fund:
Comparative Balance Sheet A-1 54
Comparative Statement of Revenues,
Expenditures and Changes in Fund
Balance Budget and Actual A-2 55
Schedule of Revenues Other Financing
Sources Budget and Actual S-1 56 57
Schedule of Expenditures Other S-2 58 62
Financing Uses Budget and Actual
Special Revenue Funds:
Combining Balance Sheet B-1 64 65
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances B-2 66 67
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Housing and Redevelopment Authority Fund B-3 68
Statement of ReVenues, Expenditures and
Changes in Fund Balance Budget and Actual
Economic Development Authority Fund B-4 69
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
E. Brown Tax Increment Financing District Fund B-5 70
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Tax Increment District No. 3 Fund B-6 71
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Citv of Brookivn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT,
Year Ended December 31. 1998
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Police Drug Forfeiture Fund B-7 72
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
Community Development Block Grant Fund B-8 73
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual
City Initiatives Grant Fund B-g 74
Debt Service Funds:
Combining Balance Sheet C-1 76
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 77
Capital Projects Funds:
Combining Balance Sheet D-1 79
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 80
Project-Length Schedule of Construction
Projects Capital Improvements Fund S-3 81
Project-Length Schedule of Construction Projects
Municipal State Aid for Construction Fund S-4 82
Project-Length Schedule of Construction Projects
Special Assessment Construction Fund S-5 83
Enterprise Funds:
Combining Balance Sheet E-1 85 86
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings E-2 87 88
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1998
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Combining Statement of Cash Flows E-3 89 90
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Municipal
Liquor Fund E-4 91
Com arative Statement of Revenues Ex enses
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and Changes in Retained Earnings Golf
Course Fund E-5 92
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Earle
Brown Heritage Center Fund E-6 93
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Recycling
and Refuse Fund E-7 94
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Water
Utility Fund E-8 95
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Sanitary
Sewer Fund E-9 96
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings Storm
Drainage Fund E-10 97
Internal Service Funds:
Combining Balance Sheet F-1 99
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings F-2 100
Combining Statement of Cash Flows F-3 101
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1998
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
by Source S-6 103
Schedule of General Fixed Assets
By Function and Activity S-7 104
Schedule of Changes in General Fixed Assets
By Function and Activity S-8 105
General Long-Term Debt Account Group:
Comparative Statement of General
Long-Term Debt G 107
Summary of Debt Service Requirements
to Maturity H 108
III. STATISTICAL SECTION Table Page
Number Number
General Governmental Expenditures by Function 1 110
General Governmental Revenues and Other
Financing Sources by Source 2 111
Tax Levies and Tax Collections 3 112
Assessed Value and Estimated Market Value of All
Taxable Property 4 113
Direct and Overlapping Tax Rates and Tax Levies 5 114
Special Assessment Billings and Collections 6 115
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 7 116
Computation of Legal Debt Margin 8 117
Computation of Direct and Overlappin Debt 9 118
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT,
Year Ended December 31. 1998
TABLE OF CONTENTS
Table Page
Number Number
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Fund
Expenditures 10 119
Schedule of Revenue Bond Covera e
9 11 120
Property Value, Construction and Bank Deposits 12 121
Principal Taxpayers 13 122
Schedule of lnsurance Coverage 14 123-124
Demographic Statistics 15 125
Miscellaneous Statistical Facts 16 126-127
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City of Brooklyn Center
CITY OFFICIALS
For the Year Ended December 31, 1998
ELECTED OFFICIALS
Term of Office Term Exnires
Mayor Myrna Kragness Four Years 12/31/2002
Counciimember Debra Hilstrom Four Years 12/31 /2002
Councilmember Ed Nelson Four Years 12/31/2002
Councilmember Kay Lasman Four Years 12/31/2000
Councilmember Robert Peppe Four Years 12/31/2000
APPO�NTED OFFICIALS
City Manager Michael J. McCaule
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City Clerk Sharon Knutson
City Treasurer Charles Hansen
City Attorney Kennedy Graven
City Prosecutor Carson Clelland
Department Heads:
Community Activities, Recreation Services James Glasoe
Community Development Brad Hoffman
Financial Services Charles Hansen
Fire/Emergency Preparedness Ronald Boman
Police Joel Downer
Public Works Diane Spector
Assessing Stephen Baker
Asst. City Manager/H:R. Director Jane Chambers
City Engineer Scott Brink
Civif Defense Coordinator Ronald Boman
Fire Marshall Ronald Boman
Heafth Officer Duane Orn, M.D.
Liquor Stores Gerald Olson
Public Works Superintendent Dave Peterson
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City of Brooklyn Center Organization
1998
ELECTORATE
City Council Advisory
Commissions
N Adminislration
Purchasing
Human Resources
City Attorney City Manager Elections
Licenses
City Clerk
Communications
Management Info Systems�
PUBLIC WORKS FIRE �EPARTMENT
POLICE DEPARTMENT FINANCIAL SERVICES COMMUNITY ACTIVITIES, COMMUNITY
RECREATION, AND SERVICES DEVELOPMENT
-Engineering -Fire Prevention -Patrol -Accounting
-Street Maint -Fire Supression -Investigaiion -Audit -Community Programs -Assessing
-Sanitary Sewer -Emergency Preparedness -Crime Prevention -Utility Billing -Recreation Programs -Inspections
-Central Garage -Community Programs -Risk Management -Community Center -EDA/HRA
-Storm Sewer -Support Services -Liquor Stores -Gov'/ Bldgs -Zonin
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-Water Dept -Dispatch -Golf Course -E.B. Heritage Cenler
-Park Maint -Senior Transportation -Plannin
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City o�Brooklyn Center
A great place to start. A great place to stay.
April 30, 1999
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn
Center for the fiscal year ended December 31, 1998. Minnesota Statutes and City Charter,
Section 7.12, require that the financial statements of the City of Brooklyn Center be audited
by the State Auditor or a certified public accountant selected by the City Council. This
requirement has been complied with by the engagement of the firm of Deloitte and Touche
LLP and their report is included in the financial section of this report.
This report has been prepared following the guidelines recommended by the Government
Finance Officers Association of the United States and Canada. The Gavernment Finance
Officers Association awards Certificates of Achievement for Excellence in Financial
Reporting to those governments whose Comprehensive Annual Financial Reports are
judged to conform substantially with high standards of public financial reporting, including
generally accepted accounting principles promulgated by the Governmental Accounting
Standards Board. Our financial reports for the past fourteen 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.
Respectf Ily submitted,
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Michael J. McCa,�i� y
City Manager
6301 Shin le Creek Pkw Brookl n Center, MN 55430-2199 Cit Hall TDD Number (612) 569-3300
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Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494
An Affirmative Action/Equal Opportunities Employer
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City of Brooklyn Center
A great place to start. A great place to stay.
April 30, 1999
Mr. Michael J. McCauley
City Manager
City of Brooklyn Center
Dear Mr. McCaule
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The comprehensive annual financial report of the City of Brooklyn Center (the City) for the
fiscal year ended December 31, 1998, is hereby submitted. Responsibility for both the
accuracy of the data, and the completeness and fairness of the presentation, including all
disclosures, rests with the City: To the best of our knowledge and belief, the enclosed data
are accurate in all material 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 enabfe the reader to gain an
understanding of the government's financial activities have been included.
The comprehensive annual financial report is presented in three sections: introductory,
financial, and statistical. Included in the introductory section is this transmittal letter, the
government's organizational chart and a list of principal officials. The financial section
includes the general purpose financial statements and the combining and individual fund
and account group financial statements and schedules, as well as the independent
auditors' report on the financial statements and schedules. A special supplemental
schedule presents the City's Y2K disclosures following the notes. 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
1996 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 federal
grants were less than $300,000 during the year ended December 31, 1998, so no single
audit was required.
REPORTING ENTITY
The financial reporting entity includes all funds and account groups of the primary
government (i.e., the City of Brooklyn 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.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 City Hall TDD Number (612) 569-3300
Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494
An Affirmatiue Action/E�ual Opportunities Employer
Blended component units, although legally separate entities, are, in substance, part of the i
primary government's operations and are included as part of the primary government.
Accordingly, the Economic Development Authority and the Housing and Redevelopment
Authority are reported as special revenue funds of the City of Brooklyn Center.
The City provides a full range of municipal services including public safety (police and fire),
streets, sanitation, social services, culture-recreation, public improvements, planning and
zoning, and general administrative services. The City also operates three off-sale liquor
stores, a public water and sewer utility, a golf course, and a convention center known as
the Earle Brown Heritage Center.
ECONOMIC CONDITION AND OUTLOOK
The City of Brooklyn Center is a northern suburb ofi the Minneapolis/St. Paul metropolitan
area, lying adjacent to the City of Minneapolis. The City is wholly within Hennepin County
and encompasses an area of approximately 8.5 square miles. The Mississippi River forms
the City's eastern boundary.
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The City experienced its most rapid growth from 1950 to 1970 when the City's population
grew from 4,300 to its peak of 35,173. The 1990 Census count for the City is 28,887, a
7.5% decline from the 1980 Census. The 1998 population, as estimated by the
Metropolitan Council, is 28,535. In contrast to the decline in population (which is due
almost entirely to fewer persons per household), the number of housing units has generally
continued to increase from 10,493 in 1970 to 11,035 in 1980 and 11,704 in 1990. The
numbers dropped slightly in 1998 to 11,295 housing units. This was due to the removal
of some units by the City in accordance with a preplanned redevelopment effort.
The estimated market value of property within the City stagnated during the early 1990s.
In 1997 it increased 3.45% over 1996 and in 1998 it increased 7.42% over 1997. The City
Assessor re ports that residential values are continuin g to show increases in early 1999
although commercial/industrial values are less robust.
Ma'or trans ortation routes in and throu h the Cit includin Interstates 94 and 694 and
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State Highways 100 and 252, have provided a continued impetus for development of a
strong commercial tax base in the City.
Commercial and industrial property comprises 53.4% of the City's taxable net tax capacity.
There are four major shopping centers located in the City. The largest commercial
property in the City is Brookdale Mall, a 1,000,000 square-foot regional shopping center
anchored by Daytons, Sears, J.C. Penney's, and Mervyn's of California. The other three
retail shopping centers in the City include Brookdale Square, a 125,000 square-foot strip
center plus an 8-screen theater; 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-free standing retail establishments including K-Mart, Kohl's Department Store,
Toys' R Us, Jerry's New Market, and a Rainbow supermarket. Westbrook Mall, which was
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the fifth shopping center, was torn down in 1999 to make way for a Cub supermarket.
New construction in 1998 includes the Extended Stay America hotel for $2,600,000;
Holiday Station Stores for $1,150,000; and River Road Dental for $600,000. Other
commercial remodeling projects included Bob Ryan Oldsmobile for $359,000; Health
System Minnesota for $620,000; Pep Boys for $660,000; Iten Chevrolet for $132,500; and
Hiawatha Rubber for $976,000.
The convergence of highways in Brooklyn Center makes it an attractive site for hotels and
motels. Establishments now operating in the City or under construction incfude Americlnn,
Baymont Inn, Comfort Inn, Country Inn Suites, Extended Stay America, Hilton Hotel,
Holiday Inn, Inn on the Farm, and Super 8 Motel.
MAJOR EVFNTS OF 199fi
1 Brooklyn Center is a mature, developed suburb which is working to revitalize itself. With
its affordable housing, excellent schools, 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: replacement and renewal of the
commercial areas of the City; replacement and enhancement of its aged infrastructure, that
is the streets, utilities, and parks; and the reinvigoration of neighborhoods.
The City continued its redevelopment effort in the Brooklyn Boulevard and 69th Avenue
area with the purchase of additional property for future commercial development and
roadway improvements.
As part of the planned replacement of the City's infrastructure, the City is in the process
of completing several major street and utility improvements. These improvements were
funded by general obligation special assessment bonds sold during 1998, an operating
transfer from the general fund, and funds from the capital projects funds and utility
enterprise funds. Abou� one twenty fifth of the City's streets are reconstructed each year.
It is expected that this will be a perpetual process, since at the end of twenty five years, it
will be necessary to start over again with the streets that were done first. A side benefit of
the street improvements has been a noticeable effort by the residents in those
neighborhoods to paint, landscape, and otherwise improve their houses.
In November 1997, voters approved the issuance of $7,900,000 of general obligation
bonds to be used toward the construction and remodeling of City police and fire facilities.
Construction of these facilities began in 1998 and will be completed in the summer of 1999.
The project is accounted for in the Capital Improvements Fund.
During 1998, the City began phase two of the 53rd Avenue Development and Linkage
Project. The Project will create a new image and focus for the southeast neighborhood by
creating new homes, green space, and a link to the Mississippi River. Phase one of the
project required the removal of 28 housing units along 53rd Avenue which will create
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opportunities for a greenway and a new low-traffic roadway. Phase two of the project
includes new owner occupied housing developed on the land not needed for the greenway.
Houses valued from $150,000 to $190,000 are being built and have sold out quickly. Most
buyers come from within a one mile radius of the project. This indicates the desire and
ca�acity for move up housing within the community. The project is accounted for in the
Economic Development Authority Fund.
In 1997, Equitable Real Estate sold Brookdale Mall to Talisman Brookdale, LLC. Talisman
Brookdale, LLC announced a large scale remodeling and expansion plan for Brookdale
Mall for 1999 and 2000. In support of the Brookdale Mall expansion, the City received a
$2,000,000 grant from the State of Minnesota during the 1997 legislative session to assist
with Shingle Creek Regional Pond project costs. The Shingle Creek Regional Pond is a
system of storm sewer and detention ponds which will provide storm water treatment for
670 acres of residential and commercial land in Brooklyn Center and Minneapolis. This
drainage area includes the Brookdale Mall and surrounding commercial area. The project
is accounted for in the Storm Drainage Fund.
During the 1998 legislative session, the City was awarded a$2,500,000 grant from the
State of Minnesota for the expansion of the Earle Brown Heritage Center. The grant will
provide funding for a new parking lot and additional meeting space for the convention
center. Construction will be complete in the spring of 1999.
FINANCIAL INFORMATION
The 1997 Minnesota legislature passed levy limits on cities. The commissioner of revenue
will determine a levy limit base for each city consisting of the 1998 property tax levy and
state aids and adjust it using 1998 inflation and population increases. The new base,
minus 1999 state aids, is the limit for 1999 property taxes. Cities will be able to establish
special levies in addition to the levy limit base for a limited number of specified purposes,
including bonded indebtedness. Indications are that the state legislature will continue levy
limits beyond their current expiration in 1999. This is a concern to Minnesota cities since
the tax increases allowed by levy limits typically are less than the general rate of inflation.
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 allow for the preparation of
financial statements in conformity with generally accepted accounting principles. Internal
controls are designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable 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.
In addition, the City maintains budgetary controls. 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
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special revenue funds are included in the annuai appropriated budget. Project-4ength
financial pians are adopted for the Capital Projects Funds. The level of budgeta .ry control
(that is, the level at which expenditures cannot legally exceed the appropriated amount)
is established 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 reappropriated in the following year"s budget.
As demonstrated by the statements and schedules included in the financial section of this
report, the City continues to meet its responsibility for sound financial management.
GENERALFUND
The following schedule presents a summary of general fund budgeted revenues for 1999,
and actual revenues for the fiscal year ended December 31, 1998, compared to 1997.
1 General Fund Revenues and Other Financina Sources
1998 Increase
1999 1998 1997 (Decrease)
1 Budqet Actual Actual from 1997
Taxes $7,860,933 $7,980,066 $6,789,756 $1,190,310
Reserve for tax abatements (30,322) (461,866) 431,544
Licenses permits 414,270 549,067 485,232 63,835
Intergovernmental revenue 3,889,507 3,875,392 3,811,900 63,492
Charges for services 862,206 771,614 757,640 13,974
Court fines 186,000 193,688 183,270 10,418
Miscellaneous revenues 292,000 425,319 458,831 (33,512)
Other financing sources 100,000 (100,000)
Total $13,504,916 $13,764,824 $12,124,763 $1,640,061
Revenues and other financing sources for the General Fund totaled $13,764,824 in 1998,
an increase of $1,640,061 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 provide 86% of the total
revenues. The principal sources of intergovernmental aid to the City are homestead and
agricultural credit aid of $1,308,965 and local government aid of $2,012,749.
Taxes increased $1,190,310 primarily due to the 1998 property tax levy increase and
higher lodging tax collections. In 1997, voters approved a bond referendum for police and
fire buildings. The property tax levy necessary to service the bond debt for 1998 was
$783,146. This new levy accounts for the majority of the increase for the 1998 actual
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compared to the 1997 actual for tax revenues.
In response to potential property tax abatements, the City has established a tax abatement
reserve in the General Fund. Since the early 1990s, City management has estimated the
potential future abatements on large commercial properties. The City added to the reserve
in the General Fund by $30,322 and $461,866 in 1998 and 1997, respectively. A tax j
abatement case was settled in 1998 which resulted in a payout from the reserve of
$1,068,848 in 1998. The balance in the reserve in the General Fund was $136,284 and
$1,174,810 on December 31, 1998 and 1997, respectively. One tax abatement on a large
commercial property Brookdale Mall was settled in 1998 within the allowance available
for it in the reserve. City management estimates that other potential tax abatements not
covered by the reserve would not materially affect the finances of the City.
Licenses and permits revenue increased due to higher building related permits and liquor
licenses. Intergovernmental revenue improved over 1997 due to increases in state aids.
For 1998 and later years, the transfer from the Municipal Liquor Fund is being made to the
Capital Improvements Fund instead of the General Fund. This change was made at the
Council's direction so that revenues for liquor operations would be used for a specific
purpose capital improvements.
The following schedule presents a summary of general fund budgeted expenditures for
1999, and actual expenditures for the fiscal year ended December 31, 1998, compared to
1997.
General Fund Exoenditures and Other Financina Uses
1998 Increase
1999 1998 1997 (Decrease)
Budget Actual Actual from 1997
2 251 141 578
General Government $2,286,773 $2,133,829 $1,99
Public Safety 5,428,967 5,137,108 5,089,072 48,036
1 8 1 868 130 86 978
Public Works 2,047,474 1,955, 0
Community Service 79,860 73,066 79,800 (6,734)
Parks and Recreation 2,232,090 2,075,180 2,186,686 (111,506)
Economic Development 261,250 313,792 248,779 65,013
521 018 312 625 311,436 1,189
Non departmental
Admin. Services Reimb. (737,487) (731,737) (661,058) (70,679)
Other Financing Uses 1,384,971 1,427,001 624,637 802,3
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Total $13,504,916 $12,695,972 $11,739,733 $956,239
Total expenditures and other financing uses in 1998 increased by a total of $956,239 over
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1997. A large part of the increase was due to the transfers out for debt service and capital
improvements. Since the 1997 budget, all General Fund and Debt Service Fund real
estate tax revenues have been recorded in the General Fund with a corresponding transfer
out to the Debt Service Funds for payment of the current year's debt service requirements.
Management believes this allows for a clearer picture of the total city real estate tax levy.
The total amount needed for debt service was $1,032,804 and $251,315 for 1998 and
1997, respectively, an increase of $781,489. The primary reason for the increase of 1998
compared to 1997 actual is the new debt service requirement related to the police and fire
bond issue. This accounts for $775,534 of the increase when comparing 1998 to 1997.
Excluding the other financing uses reveals the operating portion of the General Fund.
t Operating costs were $11,268,971 and $11,115,096 for 1998 actual and 1997 actual,
respectively. This represents only a 1.38% increase in the General Fund's cost for its own
operations.
Park and recreati:on expenditures were lower due to the elimination of various recreation
programs and cost reduction efforts.
The General Fund also transferred $394,197 to the Special Assessment Construction Fund
for infrastructure replacement. This transfer allows the City to pay cash for street
improvements instead of borrowing through a bond issue for the property tax portion of the
projects. The City anticipates this transfer to continue in the future as part of the planned
replacement of the City's aged infrastructure.
The General Fund had an excess of revenues and other financing sources over
expenditures and other financing uses of $402,398 for 1997. During 1998, the City
decided to make an equity transfer of $350,000 of this surplus to the Capital Projects
Funds. The transfer provides $125,000 for park or building needs and $225,000 for street
improvements in addition to the budgeted operating transfer for street improvements.
GENERAL FUND BALANCE
As of December 31, 1998, the fund balance of the General Fund totaled $7,338,000. This
ending fund balance is the equivalent of approximately six months of expenditures for the
1999 budget. Property taxes and intergovernmental revenue represent 82% of the
budgeted general fund revenue for 1998. 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 total revenues in the first six
months of the year. In recognition of this fact, a portion of the fund balance is being
designated for working capital.
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EARLE BROWN FARM TAX INCREMENT DISTRICT
This tax increment financing (TIF) district had both an operating deficiency for the year
1998 and a deficit fund balance as of December 31 1998. The are caused b a series
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of reductions in property tax class rates made by the State of Minnesota which have
eroded the revenue base of 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. It has the authority to continue to exist
and collect tax increments throu h the ear 2008. Two ears of tax collections be ond
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2003 should be sufficient to repay all internal borrowing.
ENTERPRISE OPERATIONS
The City's enterprise operations are composed of seven separate and distinctive activities:
Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary
Sewer utility, and Storm Drainage utility.
The liquor operation is composed of three retail stores. Two stores are leased and one is
owned. They have been consistently profitable throughout their history.
Centerbrook Golf 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. The
interfund loan is being repaid over a planned schedule covering twenty years.
The Earle Brown Heritage Center is a pioneer farmstead which has been historically
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. A new caterer began providing food services in the spring of 1999. The Inn on the
Farm is a bed and breakfast with ten rooms available. A$2,500,000 grant from the State
of Minnesota is providing for additional parking and meeting space. The City's policy for
this enterprise is to set fees and user charges at a level which allows the operations to
break-even excluding depreciation on contributed assets. That standard has not been met
in most past years, but it is hoped that the new space will improve results.
The dwindling suppfy of landfill space for the disposal of garbage has become a major
concern in Minnesota. State and county mandated goals for the diversion of garbage to
recycling programs took effect in 1989. In response, the City opened a Recycling and
Refuse Fund as an enterprise fund. So far it is operating a recycling program. Expansion
into garbage collection will take place when there is clear advantage to be achieved by it.
Goals for the rec clin ro ram are bein met.
Y 9p 5 9
The Water and Sanitary Sewer utilities are largely developed and already reach all parts
of the City. Rates for both water and sanitary sewer are reviewed annually and are
increased as needed to cover inflation and the need for new capital outlays. Three-fourths
11
of the sewer o eratin ex enses are fees aid to the Metro olitan Council Environmental
p 9 p p p
Services for sewage treatment. Planned rate increases should be sufficient to keep them
both profitable. Mains and customer service lines are being replaced as needed
concurrent with the City's 25 year program for reconstructing streets.
r During the 1980s, the State of Minnesota passed fegislation that requires cities to take
greater responsibility for controlling storm water runoff. In response to this, the City
created a Storm Drainage Utility Fund. Its fee structure is based upon the amount of water
discharged into the storm sewer system.
INTERNAL SERVICE FUNDS
The Central Garage Fund was established to own and maintain all operating equipment
of the City. At present, the fund maintains some 155 pieces of rolling and non rolling stock
equipment with a net book value of $2,746,456. Equipment maintenance, repair, fuel, and
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 65. The fund had cash and
investments of $1,248,921 and an estimated liability of $1,229,333 at the 1998 year-end.
DEBT ADMINISTRATION
At December 31, 1998, the City had twelve debt issues outstanding. These issues include
$11,430,000 of general obligation bonds, $4,740,000 of special assessment debt with
government commitment, $1,400,000 of general obligation revenue bonds and
$11,585,000 of general obligation tax increment bonds. The City maintained its A-1 rating
from Moody's Investors Service.
The City issued $1,085,000 of special assessment bonds and $1,585,000 of general
obligation refunding bonds during 1998. The special assessment bond issue provided
financing for various improvement projects in the City. The refunding bond issue provides
for the advance redemption of bonds sold in 1991. The 1991 bonds are callable on April
1, 2000 and the refunding provides a present value savings to the City of $98,650.
CASH MANAGEMENT
The Finance De artment kee s abreast of current trends and rocedures for cash
p p p
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. The yield on investments ranged from a high of 7.7 percent to a low of 4.25 percent.
Interest earned during 1998 amounted to $2,309,101 compared to $1,912,748 during
r 12
1997. Interest earnings during 1998 were higher than normal due to interest earned on
unspent bond proceeds. The City adopted a written investment policy in 1990 and adopted
an updated policy in 1997. The policy's objectives are to minimize credit and market risk,
provide needed liquidity, and maintain a competitive yield on the portfolio.
All deposits were either insured by federal depository insurance or collateralized.
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 all funds are combined and invested to the extent available in
authorized investments. Earnings from securities are allocated to the various funds in
proportion to their relative cash book balances. 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.
The City has not purchased any collateralized mortgage obligations, derivatives, or strip
investments. The practice is to hold investments to maturity. Of the City's portfolio as of
December 31, 1998, 49% matures within 1 year, another 11 in the second year, 10% in
the third year, 6% in the fourth year, 18% in the fifth year, and the last 6% in the sixth
through the tenth years.
The City has chosen to adopt the provisions of GASB Statement No. 31, Accounting and
Financial Reporting for Certain Investments and for Exter lnvestment Pools in 1998 as
required by the statement. The City restated the 1997 Total columns to record a positive
change in fair market value of investments held at December 31, 1997 of $88,974. An
additional positive change in fair market value of investments of $198,243 was recorded
for the year ended December 31, 1998.
RISK MANAGEMENT
The City insures all significant risk. A schedule of such insurance is included in the
Statistical Section.
INDEPENDENT AUDIT
The City Charter and State Statutes require the Council to provide for an audit of the
financial transactions of the City. Deloitte Touche LLP 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 fiscal year ended
December 31, 1997.
r
In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting,
a governmental unit must publish an easily readable and efficiently o�ganized
comprehensive annual financial report, whose contents conform to program standards.
Such reports must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to Certificate of Achievement Program requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
I want to express my appreciation to the Finance Department staff for the assistance
provided during the audit. I also wish to express our appreciation to the City Manager, the
Mayor, and members of the City Council for their continued interest and support in planning
and conducting the �nancial operations of the City in a responsible and progressive
manner.
Respectfully submitted,
+�-�'z��
Charles Hansen
Director of Finance
14
Certlficate of
Achievement
for Exce��ence
in Financia�
1
Aeporting
Presented to
Clty of Brooklyn Center,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is �resented by the Government Finance Officers
Association of the United States and Canada to
government units and �ublic emnloyee retirement
systems whose comprehensive annual financial
renorts (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
CE OFaj� C/
4� �NE\
u�nho srares`�
W !w0 y
��A
x�,� CORPORA110N s President
ao �ti
CH�CFGO
t��
�G
Executive Director
Deloitte
Touche
Deloitte Touche LLP Telephone: (6121397-4000
Human Capital Advisory Services Facsimile: (612) 397-4450
400 One Financial Plaza www.us.deloitte.com
120 South Sixth Street
M�neapolis, Minnesota 55402-1844
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the
City Council of the
City of Brooklyn Center
We have audited the accompanying general purpose financial statements of the City of Brooklyn Center,
Minnesota (the City), as of December 31, 1998 and for the year then ended, listed in Section IIA of the
foregoing table of contents. These general purpose financial statements are the responsibility of the
management of the City. Our responsibility is to express an opinion on these general purpose financiat
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standazds and the standards
applicable to financial audits contained in Government Auditing Standards 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 financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1L, the City adopted Governmental Accounting Standards Board Statement No. 31,
Accoccnting and Financial Reporting for Certain Investments and for Ezternal Investment Pools.
In our opinion, such genera] purpose financial statements present fairly, in all material respects, the
financial position of the City of Brooklyn Center, Minnesota at December 31, 1998, and the results of its
operations and the cash flows of its proprietary fund types for the year then ended in confornuty with
generally accepted accounting principles.
The required supplementary information on page 50 is not a required part of the basic financial
statements, but is supplementary information required by the Governmental Accounting Standards Board,
and we did not audit and do not express an opinion on such information. Further, we were unable to
apply to the information certain procedures prescribed by professional standards because of the
unprecedented nature of the year-2000 issue and its effects, and the fact that authoritative measurement
criteria regarding the status of remediation efforts have not been established. In addition, we do not
provide assurance that the City is or will become year-2000 compliant, that the City's year-2000
remediation efforts will be successful in whole or in part, or that parties with which the City does
business are or will become yeaz-2000 compliant.
DeloitteTouche
Tohmatsu
Our audit was conducted for the purpose of fornung an opinion on the general purpose financial
statements taken as a whole. The combining and individual fund and account group �nancial statements
and schedules listed in the foregoing table of contents are presented for the purpose of additional analysis
and are not a required part of the general purpose financial statements of the City of Brooklyn Center,
Minnesota. These financial statements and schedules are also the responsibility of the manaaement of
the City. Such additional information has been subjected to the auditing procedures applied in our audit
of the general purpose financial statements and�jn our opinion, is fairly stated in all material respects
when considered in relation to the general purpose financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued our report dated April 30, 1999
on our consideration of the City's internal control over financial reporting and our tests of its compliance 1
with certain provisions of laws, regulations, contracts, and grants.
April 30, 1999
2
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The generai purpose financial statements are intended to provide a financial overview of
r municipal operations. These reports are at a summary level and include that data needed
to control and analyze current operations to determine compliance with legal and
budgetary limitations and to assist in the financial planning process.
�8
City of Brooklyn Center
All Fund Types and Account Groups
COMBINED BALANCE SHEET
December 31, 1998
Governmentai Fund Types
Special De6t Capital
Generai Revenue Service Projects
ASSETS AND OTHER DEBITS
Assets:
Cash and cash equivalents (Note 2) $1,579,370 $657,742 $4,254,687 $2,557,518
Investments (Note 2) 6,868,997 2,871,342 834,584 11,164,714
Receivables:
Accounts 84,320 32,467 3,490
Delinquenttaxes (Note 1J) 140,548 6,359
Special assessments 6,887 2,481,781 612,019
Due from other funds (Note 9) 120,238 214,891 26,013 195,431
Due from other governments 37,937 174,866 150,569
Inventories and supplies (Note 1G)
Prepaid expenses
Advances to other funds (Note 9) 105,074 1,749,382
Fixed assets (net of accum depr. where applicable) (Note 3)
Other debits:
Amount available in Debt Service Funds
Amount to be provided for General Long-Term Debt
Total Assets and Other Debits $8,943,371 $3,957,667 $7,597,065 �16,433,123
LIABILITIES. EQUITY AND OTHER CREDITS
Liabilities:
Accounts payable $397,316 $102,542 $1,625 $517,529
Contracts payable 248,016
Due to other funds (Note 9)
Accrued salaries and wages 321,940 4,849 3,115
Accrued vacation sick pay (Note 1H) 602,396 21,904
Accrued health insurance
Accrued interest payable
Advances from other funds jNote 9) 869,716
Deferred revenue (Note 1J) 283,719 6,359 2,481,781 749,745
General obligation bonds payable (Note 6)
Other long-term liabilities (Note 6)
Special assessment bonds with governmental commitment (Note 6)
Revenue bonds payable (Note 6)
Total Liabilities 1,605,371 1,005,370 2,483,406 1,518,405
Equity and Other Credits:
Contributed capital (Note 4)
Investment in generai fixed assets
Retained earnings: (Notes 8 10)
Reserved
Unreserved
Fund Balances: (Notes S 10)
Reserved 105,074 2,481,353 5,113,659 7,687,250
llnreserved:
Designated 5,726,226
Undesignated 1,506,700 470,944 7,227,468
Total Equity and Other Credits 7,338,000 2,952,297 5,113,659 14,914,718
Total Liabilities, Equity and Other Credits $8,943,371 $3,957,667 $7,597,065 $16,433,123
(See notes to financial statements)
1�
EXHIBIT 1
Totais
Proprietary Fund Types Account Groups (Memorandum Only)
Generai General
Internal Fixed Long-Term December 31,
Enterprise Service Assets Debt 1998 1997
$1,113,731 $971,196 $11,134,244 $13,191,766
F�, 3,840,168 4,239,709 29,819,514 27,104,739
1,238,221 6,797 1,365,295 1,236,830
146,907. 188,564
155,316 3,256,003 2,566,414
556,573 1,100,577
104,101 467,473 455,051
F' 357,673 4,585 362,258 346,471
126,079 126,079 142,039
1,854,456 1,932, 527
40,581,994 2,746,456 $17,043,726 60,372,176 53,313,841
$5,113,659 5,113,659 2,237,549
22,695,472 22,695,472 24,132,451
$47,517,283 $7,968,743 $17,043,726 $27,809,131 $137,270,109 $127,948,819
$582,662 $80,221 $1,681,895 $731,676
59,336 307,352 451,077
385,000 385,000 1,100,577
100,941 7,516 438,361 291,929
77,346 28,716 730,362 718,034
1,229,333 1,229,333 1,218,229
29,831 29,831 32,994
1,156,312 2,026, 028 1, 932, 527
3,521,604 3,703,191
$23,015,000 23,015,000 22,450,000
225,208 54,131 279,339
4,740,000 4,740,000 3,920,000
1,400,000 1,400, 000 1, 565,000
4,016,636 1,345,786 27,809,131 39,784,105 38,115,234
21,938,312 3,320,353 25,258,665 24,317,833
$17;043,726 17,043,726 14,495,672
392,874 392,874 571,137
2i,969,469 3,302,604 24,472,065 21,204,913
15,387,336 14,682,681
5,726,226 5,516,204
9,205,112 9,045,145
43,500,647 6,622,957 17,043,726 97,486,004 89,833,585
$47,517,283 $7,968,743 $17,043,726 $27,809,131 $137,270,109 $127,948,819
City of Brooklyn Center EXHIBIT 2
All Governmentai Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1998
Totals
Special Debt Capital (Memorandum Oniy)
Revenues General Revenue Service Projects 1998 1997
Taxes and special assessments $7,949,744 $2,237,671 $537,698 $477,344 $11,202,457 $9,560,477
Licenses and Qermits 549,067 549,067 485,232
Intergovernmental 3,875,392 359,393 308,878 392,680 4,936,343 5,122,415
Chargesforservices 771,614 771,614 757,640
Court fines 193,688 193,688 183,270
Investment earnings 377,826 257,154 53,428 897,991 1,586,399 1,254,163
Change in fair value of investments 35,118 23,773 4,259 83,030 146,180 56,715
Miscellaneous 12,375 275,345 151,293 439,013 143,895
TotalRevenues 13,764,824 3,153,336 904,263 2,002,338 19,824,761 17,563,807
Expenditures
Current:
General government 2,133,829 172 2,134,001 1,992,506
Public safety 5,137,108 48,857 5,185,965 5,107,849
Public works 1,955,108 1, 955,108 1, 868,130
Community services 73,066 73,066 79,80Q
Parks and recreation 2,075,180 73,021 2,148,201 2,212,790
Economic development 313,792 579,730 893,522 1,351,019
Non departmental 312,625 312,625 311,436
Administrative Services Reimbursement (731,737) (731,737) (661,058)
Capital outlay 321,252 6,132,654 6,453,906 4,833,321
Debt service:
Principal retirement 1,285,000 1,285,000 1,135,000
Interest and fiscal charges 1,285,460 1,285,460 1,069,278
Total Expenditures 11,268,971 1,023,032 2,570,460 6,132,654 20,995,117 19,300,071
Excess or Deficiency(-) of Revenues
Over Expenditures 2,495,853 2,130,304 (1,666,197) (4,130,316) (1,170,356) (1,736,264)
Other Financinq Sources or Uses(-)
Proceeds from sale of bonds 1,588,254 1,081,746 2,670,000 8,975,000
Operating transfers in 294,197 2,882,804 469,197 3,646,198 2,976,285
Operating transfers out (1,427,001) (2,644,197) (4,071,198) (2,876,285)
Total Other Financing Sources or Uses(-) (1,427,001) (2,350,000) 4,471,058 1,550,943 2,245,D00 9,075,000
Excess or Deficiency(-) of Revenues and Other
Sources Over Expenditures and Other Uses 1,068,852 (219,696) 2,804,861 (2,579,373) 1,074,644 7,338,736
Fund Balances January 1 6,619,148 3,171,993 2,239,528 17,213,361 29,244,030 21,905,294
Equity Transfers In (Out) (350,000) 69,270 280,730
Fund Balances December 31 $7,338,000 $2,952,297 $5,113,659 $14,914,718 $30,318,674 $29,244,030
(See notes to financial statements)
27
EXHIBIT 3
City of Brooklyn Center
General and Special Revenue Funds
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1998
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Acfual Budget
Revenues
Taxes and special assessments $7,733,573 $7,949,744 $216,171 $2,369,913 $2,237,671 ($132,242)
Licenses and permits 364,585 549,067 184,482
Intergovernmental 3,848,814 3,875,392 26,578 266,160 359,393 93,233
Charges for services 882,594 771,614 (110,980)
Courtfines 192,000 193,688 1,688
Investment earnings 300,000 377,826 77,826 150,000 257,154 107,154
Unrealized gain or (loss) 35,118 35,118 23,773 23,773
Miscellaneous 12,000 12,375 375 15,000 275,345 260,345
TotalRevenues 13,333,566 13,764,824 431,258 2,801,073 3,153,336 352,263
Expenditures
General government 2,234,395 2,133,829 (100,566) 172 172
Public safety 5,316,155 5,137,108 (179,047) 103,490 103,490
Publicworks 2,023,166 1,955,108 (68,058)
Community services 80,104 73,066 (7,038)
Parks and recreation 2,166,277 2,075,180 (91,097) 73,021 73,021
Economicdevelopment 314,500 313,792 (708) 661,164 846,349 185,185
Non-departmental 525,259 312,625 (212,634)
Admin. Services Reimbursement (715,538) (731,737) (16,199)
TotalExpenditures 11,944,318 11,268,971 (675,347) 661,164 1,023,032 361,868
4 Excess or Deficiency(-) of Revenues
Over Expenditures 1,389,248 2,495,853 1,106,605 2,139,909 2,130,304 (9,605)
Other Financina Sources or Uses(-1
Operating transfers in 391,743 294,197 (97,546)
Operating transfers out (1,378,425) (1,427,001) (48,576) (2,991,743) (2,644,197) 347,546
i� Total Qther Financing Sources or Uses(-) (1,378,425) (1,427,001) (48,576) (2,600,000) (2,350,000) 250,000
Excess or Deficiency(-) of Revenues and Other
Sources Over Expenditures and Other Uses 10,823 1,068,852 1,058,029 (460,091) (219,696) 240,395
Fund Balances January 1 6,619,148 6,619,148 3,171,993 3,171,993
Equity Transfer In (Out) (350,000) (350,000)
Fund Balances December 31 �6,629,971 �7,338,000 $708,029 $2,711,902 $2,952,297 $240,395
(See notes to financial statements)
Z�
City of Brookiyn Center EXHIBIT 4
Proprietary Fund Types
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1998
lnternai Totals
Enterprise Service (Memorandum Only)
Operatinq Revenues Funds Funds 1998 1997
Sales and user fees �10,649,346 $1,031,584 $11,680,930 $11,510,048
Cost of sales 2,880,024 2,880,024 2,698,882
Net Operating Revenues 7,769,322 1,031,584 8,800,906 8,811,166
Operatinq Expenses
Personal services 2,613,031 282,596 2,895,627 2,864,076
Supplies 295,158 193,448 488,606 503,924
Other services 2,642,884 71,988 2,714,872 2,804,864
Insurance 53,177 30,537 83,714 88,336
Utilities 315,484 4,554 320,038 313,733
Rent 134,107 134,107 81,415
Depreciation 911,003 511,131 1,422,134 1,345,133
Total Operating Expenses 6,964,844 1,094,254 8,059,098 8,001,481
Operating Income (Loss) 804,478 (62,670) 741,808 809,685
Nonoperatin4 Revenues or Exnenses (-1
Investment earnings 267,953 292,172 560,125 658,585
Unrealized gain or (loss) 24,905 27,157 52,062 32,258
Speciai assessments 22,767 22,767 48,822
Intergovernmental 907,191 907,191
Other revenue 56,688 56,688 117,166
Interest and fiscal agent fees (123,502) (123,502) (180,841)
Total Net Nonoperating 1,156,002 319,329 1,475,331 675,990
Income Before Operating Transfers 1,960,480 256,659 2,217,139 1,485,675
Operating Transfers In (Out) 425,000 425,000 (100,000)
Net income 2,385,480 256,659 2,642,139 1,385,675
Depreciation on contributed assets that
reduces contributed capital 299,430 147,320 446,750 526,191
Retained Earnings January 1 18,877,425 2,898,625 21,776,050 19,864,184
Retained Earnings December 31 �21,562,335 $3,302,604 $24,864,939 $21,776,050
(See notes to financial statements)
23
City of Brookiyn Center EXHIBIT 5
Proprietary Fund Types
COMBINED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1998
Internal Totals�
Enterprise Service (Memorandum Onty)
Cash flows from ooeratin4 activities: Funds Funds 1998 1997
Operating income (loss) $804,478 ($62,670) $741,808 $809,685
Adjustments to reconcite operating income (loss) to
net cash provided by operating activities:
Depreciation 911,003 511,131 1,422,134 1,345,133
Changes in assets and liabilities:
Receivables 179,620 (2,637) 176,983 201,370
inventories (17,292) 1,505 (15,787) 45,748
Prepaid expenses 15,960 15,960 17,529
Payables 169,145 68,543 237,688 (57,477)
Accrued expenses 55,0'10 3,326 58,336 8,289
Accrued interest payable (3,163) (3,163) (2,841)
Accrued health insurance liability 11,104 11,104 170,309
Other nonoperating income 986,646 986,646 165,988
Net cash provided by operating activities 3,101,407 530,302 3,631,709 2,703,733
Cash flows from noncapital financinq activities:
Proceeds from borrowings on long term debt 225,208 225,208
Principal payments on advance from other funds (78,071) (78,071) (203,891)
Principal payments on due from other funds (200,000)
Interest paid on advance from otherfunds (4,691) (4,691) (64,436)
Interest paid on due to other funds (45,211) (45,211) (27,148)
Operating transfers in (out) 425,000 425,000 (100,000)
Net cash used for noncapital financing activities 522,235 522,235 (595,475)
Cash flows from capitai and related financina acfivities:
Capital contributions 1,387,582 1,387,582 156,784
Acquisition and construction of capital assets {5,166,863) (765,554) (5,932,417) (3,854,534)
Principal paid on revenue bonds (165,000) (165,000) (155,000)
Interest paid on revenue bonds (73,600) (73,600) (89,257)
Net cash used for capital and related financing activities (4,017,881) (765,554) (4,783,435) (3,942,007)
Cash flows from investinq activities:
Investments purchased (3,552,017) (3,901,300) (7,453,317) (4,154,424)
Investments sold or matured 2,977,393 3,232,985 6,210,378 5,782,865
investment earnings 267,953 292,172 560,125 658,585
Net cash provided by (used for) investing activities (306,671) (376,143) (682,814) 2,287,026
Net increase (decrease) in cash and cash equivalents (700,910) (611,395) (1,312,305) 453,277
Cash and cash equivalents at beginning of year 1,814,641 9,582,599 3,397,232 2,943,955
Cash and cash equivalents at end of year $1,113,731 $971,196 $2,084,927 $3,397,232
(See notes to financial statements)
24
City of Brooklyn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1998
Note 1: Summarv of Sianificant Accountina Policies
The City of Brookiyn Center, Minnesota (City) was formed and operated pursuant
to applicable Minnesota laws and statutes. The governing body consists of a five-
member City Council elected at large to serve four-year staggered terms.
A. Reaortina Entitv
The City includes all funds, organizations, institutions, agencies, departments, and
offices that are not legally separate from such. Component units are legally
separate organizations for which the elected officials of the City are financially
accountable and are included within the general purpose financia( statements of the
City because of the significance of their operational or financial relationships with
the City.
BLENDED COMPONENT UNITS:
Blended component units, although legally separate entities, are, in substance, part
of the government's operations and data from these units are combined with data
of the primary government.
Economic DevelopmentAuthority (EDA) and Housing and RedevelopmentAuthority
(HRA) in and for the City of Brooklyn Center:
The governing boards are the City Council. The Council reviews and approves EDA
and HRA tax levies, and the City provides major community development financing
for EDA and HRA activities. Debts issued for EDA and HRA activities are City
general obligations. Although the EDA and HRA are legally separate from the City,
they are reported as if they were part of the City because the governing boards are
the same. Complete �nancial statements for the EDA and HRA may be obtained
at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center,
Minnesota 55430.
.JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS:
The City has several agreements with governmental and other entities which
provide reduced costs, better service, and additional benefits to the participants.
These programs, in which the City participates, are listed below and amounts
recorded within the current year financial statements are disclosed.
25
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
Local Government Information Systems Association (LOGIS):
This consortium of approximately 24 government entities provides computerized
data processing and support services to its members. LOGIS is legally separate; the
City does not appoint a voting majority of the Board, and the Consortium is fiscally
independent of the City. The total amount recorded within the 1998 financial
statements of the City was $293,089 for services provided which is allocated to the
various funds based on applications. Complete financial statements may be
obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley,
Minnesota 55422.
r LOGIS Insurance Group:
This group provides cooperative purchasing of health and life insurance benefits for
approximately 45 government entities. The total 1998 employee insurance benefits
expense, including health and life insurance, recorded within the financial
statements was $669,703. Complete financial statements may be obtained from
DCA, Inc. located at 400 DCA Center, 13100 Wayzata Boulevard, Minnetonka, MN
55305-1840.
OTHER:
The Brooklyn Center Fire Department Relief Association (Association):
The Association is or anized as a non rofit or anization le all se arate from the
9 p 9 9 Y p
City, by its members to provide pension and other benefits to such members in
accordance with Minnesota Statutes. Its board of directors is appointed by the
membership of the Association and not by the City Council and the Association
issues its own set of financial statements. All funding is conducted in accordance
with applicable Minnesota Statutes, whereby state aids flow to the Association, tax
levies are determined by the Association, and are only reviewed by the City and the
Association pays benefits directly to its members. The Association may certify tax
levies to Hennepin County directly if the City does not carry out this function.
Because the Association is fiscally independent of the City, the financial statements
of the Association have not been included within the City's reporting entity. (See
Note 15 for disclosures relafing to the pension plan operated by the Association.)
The City's portion of the costs of the Association's pension benefits is included in
the General Fund under public safety. Complete financial statements for the
Association may be obtained at the City offices located at 6301 Shingle Creek
Parkway, Brooklyn Center, Minnesota 55430.
�6
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
B. Fund Accountina
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-balancing accounts that comprise
its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual
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 follows:
GOVERNMENTAL FUNDS:
General Fund The General Fund is the general operating fund of the City. It is 1
used to account for all financial resources except those required to be accounted
for in another fund.
Special Revenue Funds Special Revenue Funds are used to account for the
proceeds of certain specific revenue sources that are legally res#ricted 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 principal, interest, and
related costs.
Capital Projects Funds Capital Projects Funds are used to account for financial
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
primari(y through user charges.
Internal Service Funds Internal 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 reimaursement basis.
27
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
C. Fixed Assets and Lona-Term Liabilities
The accountin and re ortin of fixed assets and lon -term liabilities associated
9 p 9 J
with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement, which means that
only current assets and current liabilities are generally included on their balance
sheets. Their reported fund balance is considered a measure of "available
spendable resources." Governmental 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.
r.-�
Fixed assets used in governmental fund type operations are accounted for in the
General Fixed Assets Account Group, rather than in the governmental funds. Public
domain general fixed assets consisting of certain improvements other than
buildings, including 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 valued at their estimated market value
as of the date donated.
The fixed assets of the proprietary funds are depreciated using the straight-line
method over the estimated useful lives of the assets. The estimated useful lives are
as follows:
Water Sewer Mains Lines 100 years
Buildings and Structures 20-40 years
Water Wells and Storage Tanks 15-50 years
Sewer Lift Stations 15-40 years
Machinery and Equipment 5-20 years
Furniture and Fixtures 5-20 years
Public lJtility assets financed by special assessments are recorded as contributions.
Long-term liabilities expected to be financed from governmental funds are
accounted for in the General Long-Term Debt Account Group, not in the
governmental funds.
2�
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
Ali proprietary funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all liabilities
associated with the operations of these funds are included on the balance 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 total assets.
D. Basis of Accountina
Governmental funds are accounted for using the modified accrual basis of
accounting. Their revenues are recognized when they become measurable and
available. Available means collectible 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 include 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 collected. Interest on special assessments is
recognized as revenue when due, net of delinquencies.
Expenditures are generally recognized under the modified accrual basis of
accounting when the related fund liability is incurred, except for principal and
interest on general long-term debt which is recognized when due.
All 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 receivables are
recorded at year-end. The City applies all app{icable Financial Accounting
Standards Board (FASB) pronouncements issued prior to November 30, 1989 in
accounting for its proprietary operations.
E. Budaets and Budaetarv Accountina
The City follows these procedures establishing the budgetary data reflected in the
financial statements:
1. In August, the City Manager submits to the City Council proposed operating
budgets for the fiscal year commencing the following January. The operating
budgets include expenditures and the means of financing them.
2. The County mails individual property tax notices showing the taxes which would
result from the proposed budgets of all taxing units to each property in November.
29
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted through passage of a resolution by the City
Council in the month of December.
5. The City Council must authorize any transfer of budgeted amounts between
departments within the General Fund. A transfer of budgeted amounts within
individual departments must be authorized by the city manager.
6. Supplemental appropriations during the year may only be made by the City
Council. These amounts must be financed by funds from the contingency reserve
set up in the General Fund or by additional revenues.
7. All budget amounts lapse at the end of the year to the extent they have not been
expended.
8. Formal budgetary integration is employed as a management control device
during the year for all governmental funds with the exception of Debt Service Funds
and Capital Project Funds. Formal 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 Capital Projects
Funds is accomplished through the use of project controls and project-length
budgets.
9. Bud ets are ado ted on a basis consistent with enerall acce ted accountin
9 p 9 Y P 9
principles. Annual appropriated budgets are adopted for all governmental funds
k� except for Debt Service Funds and the project-length Capital Project Funds.
10. Budgetary control is maintained at the department level for the General Fund
and at the fund level for all other governmental funds that adopt annual budgets.
s, 11. Budgeted amounts are as originally adopted, or as amended by the City
Council. Individual and aggregate amendments were not material in relation to the
original appropriations.
F. Investments
Cash balances from all funds are combined and invested to the extent available in
authorized investments (see Note 2). Earnings from such investments are allocated
to the respective funds on the basis of applicable cash balance participation by
each fund. Cash and investments are stated at fair value. All commercial paper
and certificates of deposit with a maturity of one year or less when purchased are
30
Note 1: Summarv of Sianificant Accountina Policies (cont'd)
stated at amortized cost which a roximates market value. Ali hi hl liquid
pp 9 Y
unrestricted investments with a maturity of three months or less when purchased
are considered to be cash equivalents.
G. Inventorv
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 (FIFO) method in the
other proprietary funds. The costs of governmental fund type supplies are recorded I
as expenditures when purchased.
H. Accrued Vacation and Sick Pav
The City pays employees severance pay upon termination of employment based on
accumulated sick leave and accrued vacation. Such pay is accrued as an
expenditure/expense as it is earned.
I. Fund Eauitv i
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 appropriable for expenditure
or legally segregated for a specific future use. Designated fund balance represents
tentative plans for future use of financial resources.
J. Propertv Tax
Property tax levies are set by the City Council in December of each year, and are
certified to Hennepin County for collection in the following year. In Minnesota,
counties act as collection agents for all property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on
January 1 and are recorded as receivables by the City at that date. Revenues are
accrued and recognized in the year collectible, net of delinquencies.
Real 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 cities and other taxing districts two times a
year, in July and December.
31
Note 1: Summarv of Sianificant Accountina Policies (cont'dl
Taxes which remain unpaid at December 31 are classified as delinquent taxes
receivabie and are fully offset by deferred revenue because they are not known to
be available to finance current expenditures. At December 31, 1998, the City has
recorded $136,284 in deferred revenue for the General Fund for estimated property
tax abatements that are anticipated to be repaid to the County in future years.
K. Conduit Debt Obliaations
From time to time, the City has issued Industrial Revenue Bonds to provide
assistance to private sector entities for the acquisition and construction of 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 repayment of the bonds. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements.
L. Accountina Chanae Market Value of Investments
Government Accounting Standards Board Statement No. 31, Accounting and
Financial Reporfing for Certain Investments and for External lnvestment Pools,
establishes accounting and financial reporting standards for all investments. All
investments except commercial paper, certificates of deposit, and money market
investments are reported at fair value in the balance sheet. Fair value is the amount
at which the investment could be exchanged in a current transaction befinreen willing
parties, other than in a forced or liquidation sale. Commercial paper and non-
negotiable certificates of deposit are reported using a cost based measure incfuding
the amortization of discounts. Change in the fair value of investments is
recognized as revenue on the operating statement. Adopting the change required
the recognition of an $88,974 increase in the fair value of investments as of
t_� December 31, 1997.
r M. 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 financial position, results of operations, or cash flows in
conformity with generally accepted accounting principles. Interfund eliminations
have not been made in the aggregation of this data.
32
Note 2: Cash and Investments
A. Deoosits
In accordance with Minnesota Statutes, the City maintains deposits at those
depository banks authorized by the City Council. 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.
Authorized collateral includes the legal investments described below, as well as
certain first mortgage notes, and certain other state or local government obligations.
Minnesota Statutes require that securities pledged as collateral be held in
safekeeping by the City Treasurer or in a financial institution other than that
furnishing the collateral.
At December 31, 1998 the carrying amount of the City's demand deposits was
$(430,398) and the bank balance was $380,565. Of the bank balance, $100,000
was covered by federal depository insurance (risk category A) and the remainder
was covered by collateral held in the pledging bank's trust department in the City's
name (risk category B).
Risk Cateaorv
A Insured or collateralized b securities held b the Cit or its a ent in
Y Y Y 9
the City's name.
B Collateralized with securities held by the pledging institution's trust
department in the City's name.
C Uncollateralized or collateralized with securities held by the pledging
institution's trust department or agent, but not in the City's name.
r
33
Note 2: Cash and Investments (cont'd)
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes, as follows:
a Direct obligations or obligations guaranteed by the United States or
its agencies.
b Shares of investment companies registered under the Federal
Investment Company Act of 1940 and whose only investments are in
securities described in (a) above.
�-z
c General obligations of the State of Minnesota or any of its
municipalities.
rs
d Banker's acceptances of United States banks eligible 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 re urchase a reements with banks that are
p 9
members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or
certain Minnesota securities broker-dealers.
i� g Future contracts sold under authority of Minnesota Statutes 471.56,
subdivision 5.
The City has not purchased any collateralized mortgage obligations, derivatives,
or strip investments. Investments are typically held to maturity. Of the City's
portfolio as of December 31, 1998, 49°/o matures within 1 year, another 11% in the
second year, 10% in the third year, 6% in the fourth year, 18% in the fifth year, and
the last 6% in the sixth through the tenth years.
l-
i.
34
Note 2: Cash and Investments fcont'd)
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 held 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. In accordance with GASB Statement No. 3, investments in a money
market fund are not categorized as to custodial credit risk.
Balances at December 31, 1998:
Carrying
Credit Risk Category Amount/
Securities Type 1 2 3 Fair Value
Investments Categorized:
U.S. Governments $16,830,314 $16,830,314
Federal Agencies 4,254,777 4,254,777
Certificates of Deposit 2,804,050 2,804,050
Commercial Paper 9,519,275 9,519,275
$33,408,416 33,408,416
Investments Not categorized:
Cash in escrow for refunding bonds 1,555,950
Money market funds 5,594,799
Total Investments 40,559,165
Cash 394,593
Total Cash, Cash Equivalents, and investments $40,953,758
35
Note 2: Cash and Investments (cont'dl
SUMMARY OF CASH AND INVESTMENTS
Balances at December 31, 1998
Carrying
Cash: Amount/
Fair Value
Marquette Bank Brookdale, Brooklyn Center, Minnesota $380,565
Change funds 14,028
Totai Cash $394,593
investments:
Investment Tvpe Interest Rate Maturity
U.S.�Treasury notes 4.25 7.75% 1999 2003 $16,830,314
Federal Home Loan Mortgage
bonds 5.125 6.5% 199 9 20 0 8 2, 5 4 4, 5 5 9
Federal National Mortgage
Association bonds 6.0 7.72% 1999 2008 1,710,218
Certificates of Deposit Various 1999 2002 2,804,050
Commercial paper Various 1999 9,519,275
Minnesota Municipal Money Market Fund, Insight Investment
Management, Minneapolis, Minnesota 4,753,203
Dreyfus General Money Market Fund, Marquette Trust,
Minneapolis, Minnesota 526,417
Bond Refunding Escrow Norwest Bank 1,555,950
Money Market Fund, Norwest Bank, Minnesota 313,253
Money Market Fund, First Trust, St. Paul, Minnesota 1,926
Totallnvestments $40,559,165
Total Cash Cash E uivalents and Investments $40,953,758
q
From Exhibit 1, COMBINED BALANCE SHEET
Cash and cash equivalents $11,134,244
Investments 29,819,514
$40,953,758
36
t
Note 3: Fixed Assets
Changes in the General Fixed Assets Account Group during 1998 were as follows:
Balance Balance
Jan. 1, 1998 Additions Disposals Dec. 31, 1998
Land $2,369,064 $104,800 $2,473,864
Buildings Improvements 6,610,287 2,284,663 $118,497 8,776,453
Park Improvements 3,250,559 104,367 3,354,926
Furniture Fixtures 1,361,967 77,647 79,139 1,360,475
Departmental Equipment 903,795 178,708 4,495 1,078,008
TOTAL GENERAL F1XED
ASSETS $14,495,672 $2,750,185 $202,131 $17,043,726
The following is a summary of proprietary fund-type fixed assets at December 31, 1998:
Internai
Enterprise Service
Funds Funds
Land $3,299,529
Land Improvements 144,649
Buiidings Improvements 18,976,575
Mains Lines 27,496,552
Departmental Equipment 1,298,709 $5,142,635
Total 51,216,014 5,142,635
Less accumulated depreciation (10,634,020) (2,396,179)
Net $40,581,994 $2,746,456
Note 4: Contributed Caqital
During 1998 contributed capital changed by the following amounts:
Internal
Enterprise Service
Funds Funds
Additions:
Improvement construction $1,387,582
Deductions:
Depreciation on contributed assets (299,430) ($147,320)
Net Change 1,088,152 (147,320)
Contributed Capital, January 1, 1998 20,850,160 3,467,673
Contributed Capital, December 31, 1998 $21,938,312 $3,320,353
37
Note 5: Oneratina Leases
During 1998, the City leased space for the operation of two of its three municipal
liquor stores. One of these is a noncancelable five-year lease ending in March
2000. The other is a noncancelable finro year lease ending in May 2000. These
leases provide for minimum rent payments, plus a pro-rata share of common
area expenses. Total rental expense under the lease agreement for the years
T ended December 31, 1998 and 1997 was $55,003 and $38,133, respectively.
Future minimum rent payments under noncancelable leases are as follows:
Year Endina Amount
1999 48,457
2000 15,991
64.448
The Earle Brown Heritage Center Fund, which operates as an enterprise fund,
leased space to one tenant in 1998. The lease was renegotiated and extended
for a ten year period commencing January 1, 1999. In addition, another tenant
was signed effective April 15, 1999 with a lease which is renewable
automatically for a one year term. 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 expenditures under the
lease agreements were as fo(lows:
E 1998 1997
Rental Revenues 30,797 79,774
Rental Expenditures 52,587 61,357
Future minimum rentals to be received are as follows:
Cash Trade-Out
Year Endina. Amount Amount
1999 14,400
1999-2000 37,338/yr.
2001-2002 38,625/yr.
2003-2004 39,912/yr.
2005-2006 41,200/yr.
2007-2008 42,488/yr.
3�
NOte 6: Lona-Term Debt r
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,
1998:
General Tax Special Storm Sewer
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $10,025,000 $12,425,000 $3,920,000 $1,565,000 $27,935,000
Bonds issued 1,585,000 1,085,000 2,670,000
Bonds retired 180,000 840,000 265,000 165,000 1,450,000
Bonds payable
December 31 $11,430,000 $11,585,000 $4,740,000 $1,400,000 $29,155,000
The annual requirements to amortize all outstanding debt as of December 31, 1998,
including interest of $8,242,105, are as foilows:
General Tax Special Storm Sewer
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds Total
1999 $986,588 $1,827,232 $594,790 $237,557 $3,646,167
2000 2,579,981 1,875,554 718,665 239,110 5,413,310
2001 1,032,651 1,969,409 695,889 239,950 3,937,899
2002 1,030,749 1,973,893 672,539 240,100 3,917,281
2003 1,027,356 1,985,412 653,520 239,540 3,905,828
2004 on 8,281,066 5,407,304 2,413,790 474,460 16,576,620
$14,938,391 $15,038,804 $5,749,193 $1,670,717 $37,397,105
If special assessments are not adequate to retire the outstanding debt, the City's fuil
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.
There are a number of limitations contained in the various bond indentures. The Cit is
Y
in compliance with all requirements of the indentures.
39
Note 6: Lona Term Debt (cont'dl
Long-term debt obiigations outstanding at year-end are summarized as follows:
Bond
Payment Issue Maturity Authorized
Rates Dates Date Date And Issued Retired Outstanding
General Obligation Bonds
State-Aid Street Bonds 4.7-6.7 4-01 10-01 09-01-91 04-01-06 $3,000,000 $1,055,000 $1,945,000
Refunding State-Aid Street Bonds 3.55-4.0 4-01 10-01 12-01-98 04-01-06 1,585,000 1,585,000
Police and Fire Building Bonds 4.1-4.9 2-01 8-01 12-01-97 02-01-13 7,900,000 7,900,000
Total 12 485 000 1 055 000 11 430 0
00
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 $2,425,000 $3,625,000
r
1992 Refunding Tax Increment 4.5-5.6 2-01 8-01 02-01-92 02-01-03 4,270,000 870,000 3,400,000
1995 Taxable Tax Increment Bonds 6.0-6.75 2-01 8-01 11-01-95 02-01-11 4,560,000 4,560,000
Total $14,880,000 $3,295,000 $11,585,000
General Obli ation S ecial Assessment Bonds
9 P
1994 Street Improvement Bonds 4.1-5.5 2-01 8-01 08-01-94 02-01-05 $835,000 $225,000 $610,000
1995 Street Improvement Bonds 4.0-4.9 2-01 8-01 11-01-95 02-01-06 780,000 135,000 645,000
1996 Street Improvement Bonds 4.2-5.1 2-01 8-01 11-01-96 02-01-07 1,440,000 115,000 1,325,000
1997 Street Improvement Bonds 4.0-4.7 2-01 8-01 12-01-97 02-01-08 1,075,000 1,075,000
1998 Street Improvement Bonds 3.4-4.2 2-01 8-01 12-01-98 02-01-09 1,085,000 1,085,000
Total $5,215,000 $475,000 $4,740,000
General Obiigation Revenue Bonds
1994 Storm Sewer Revenue Bonds 4.2-5.4 2-01 8-01 08-01-94 02-01-05 $1,830,000 $430,000 $1,400,000
Total
$1,830,000 $430,000 $1,400,000
In addition to the bonded debt listed above, the City of Brooklyn Center has two amounts recorded as "Other
fong term liabilities." These are loans extended to the City by Northern States Power for the purpose of
promoting energy conservation improvements to City owned facilities. The first loan is recorded in the
General Long-term Debt Group of Accounts for $54,131 and was used for instalfation of low energy lamps in
traffic signals. it wi(I be repaid by the General Fund in 41 monthly installments of $1,388 which commenced
on 11/4/98. The second loan is recorded in the Water Fund for $225,208 and was used for installation of
controls on well pumps. It is payable in 51 monthly instaliments of $4,692 which commenced on 10/2/98.
40
Note 7: Seament Information
Segment information as of and for the year ended December 31, 1998 was as follows:
E. Brown
Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage
Fund Fund Fund Fund Fund Fund Fund Total
Operating Revenues $3,200,585 $290,654 $2,540,085 $209,007 $1,179,383 $2,289,620 $940,012 $10,649,346
Depreciation Expense 40,787 12,697 354,590 255,689 185,732 61,508 911,003
Operating Income (Loss) 174,749 31,969 (436,837) (5,684) 104,333 257,138 678,811 804,479
.ry Operating Grants 907,191 907,191
Operating Transfers In (Out) (75,000) 500,000 425,000
Net Income (Loss) 116,781 35,240 (456,842) (990) 344,121 350,306 1,996,864 2,385,480
Current Capital Contributions 6,839 1,174,611 206,132 1,387,582
Property, Plant Equipment:
Additions 39,421 11,660 1,261,433 1,211,962 546,448 2,095,939 5,166,863
Deletions 85,796 14,026 3,097 2,498 105,417
Net Working Capital 408,448 (13,989) (370,064) 99,942 3,084,753 1,829,375 411,739 5,450,204
Total Assets 906,489 1,712,926 10,322,792 118,824 15,705,578 11,271,144 7,479,530 47,517,283
Bonds and Other Long-Term
Liabilities Payable from
Operating Revenues 26,343 1,050,000 168,906 1,230,000 2,475,249
Total Equity $687,841 $606,160 $9,629,921 $99,942 $15,268,220 $11,240,286 $5,968,277 $43,500,647
Note 8: Reserved/Desianated Fund Eauitv
Fund balances and retained earnings in the various funds have
been reserved or designated for the following purposes:
Reserved Fund Eauitv
Retained Earnin s:
9
Enterprise Funds:
Water Utility Fund Special Assessments $107,701
Sanitary Sewer Fund Special Assessments 4,680
Storm Drainage Fund
Debt Service 237,558
Special Assessments 42,935
j Total Reserved Retained Earnings 392,874
Fund Balances:
General Fund:
Advances to other Funds 105,074
Special Revenue Funds:
Economic Development Authority Fund
Bond Proceeds 2,481,353
Debt Service Funds:
General Obligation Bonds Debt Service 2,172,728
Tax Increment Bonds Debt Service 1,851,766
Special Assessment Bonds Debt Service 1,089,165
Total Debt Service Funds 5,113,659
Capital Projects Funds:
Capital Improvements Fund
Advances to other Funds 1,156,313
Bond Proceeds 5,937,869
Municipal State Aid for Construction Fund
Advances to other Funds 593,069
Total Capital Projects Funds 7,687,251
Total Reserved Fund Balances 15,387,337
Total Reserved Fund Equity $15,780,211
Desianated Fund Eauitv
General Fund:
Working Capital $5,712,691
Appropriated to next budget 13,535
Total General Fund $5,726,226
42
Note 9: InterFund Receivables and Pavables
Due from other funds and due to other funds are short-term
receivables/payables which have interest rates of 0% to 6.5%.
Advances to other funds and advances from other funds are considered
long-term receivables/payables. Advances have interest rates of 0% to
6.5% with 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.
Due from Due to
OtherFunds OtherFunds
Generai Fund 120,238
Special Revenue Funds:
Economic Development Authority Fund 214,891
Community Development Block Grant 171,573
Debt Service Funds:
Tax Increment Bonds 26,013
Capital Projects Funds
Capital Reserve Emergency Fund 15,911
Capital Improvements Fund 131,530
M.S.A. Construction Fund 30,971
Special Assessments Constr. Fund 17,019
Enterprise Funds:
Earle Brown Heritage Center Fund 385,000
Total 556,573 556,573
Advances to Advances from
OtherFunds OtherFunds
General Fund 105,074
Special Revenue Funds:
E.B. Farm Tax Increment Fin. Fund 698,143
Capital Projects Funds
Capital Improvements Fund 1,156,312
M.S.A. Construction Fund 593,069
Enterprise Funds
Municipal Liquor Fund 56,312
Golf Course Fund 1,100,000
Total 1,854,455 1,854,455
43
Note 10: Individual Fund Disclosures
Deficit fund balances exist at December 31. 1998 in the followina funds:
Special Revenue Funds:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $671,437
This deficit is being funded through internal borrowing and will be repaid from
future surplus tax increments.
Enterprise Funds:
Golf Course Fund $37,565
E. Brown Heritage Center Fund $134,766
r-}
These deficits are being funded through internal borrowing and wifl be repaid
from future income of the enterprises.
Excess of Exnenditures over Annronriations:
For the year ended December 31, 1998, expenditures exceeded budget at the
fund level (i.e., the legal level of budgetary control) as follows:
Saecial Revenue Funds: Excess
Economic Development Authority Fund $169,532
Earle Brown Farm Tax Increment District 1,184
Tax Increment District No. 3 14,469
City Initiatives Grant Fund $176,683
The over expenditures in the Economic Development Authority were due to
initiation of a construction project approved by the governing board, but for
which no budget adjustment was made. The over expenditures were funded by
fund balance. The over expenditures in the tax increment districts resulted from
increased professional services to support administration of the districts. The
over expenditures were funded by tax increment revenues. The over
�:r expenditures in the City Initiatives Grant Fund was the result of new grants not
included in the adopted 1998 budget. The over expenditures were funded by
grant revenues.
Note 11: Continaencies
There are a few lawsuits pending in which the City is involved. City
Management estimates that the potential claims against the City not covered by
insurance resulting from such litigation would not materially affect the City's
financial position.
44
Note 12: Risk Manaaement
The City is exposed to various risks of loss 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
deductible portions of the insurance policies. The amount of these deductibles
is considered immaterial to the financial statements.
There were no significant reductions in insurance from the previous year or
settlements in excess of insurance coverage for any of the past three years.
However, the City did increase the deductible portion of the insurance policies
and� the amount of this increase is considered immaterial to the financial
statements.
Note 13: Post-Emplovment Health Care Benefits
The City has provided post-retirement health care benefits, as per the
requirements of a City Council resolution, fior certain retirees and their
dependents since 1986. Full time employees have the option of retaining
membership in the City's health insurance plan for which the City will pay the
single person premium until such time as the retiree is eligible for Medicare
coverage or at age 65, whichever is sooner. If the retiree desires to continue
family coverage, the additional cost for family coverage shatl be paid by the
retiree to the City. To qualify under this program, the employee, on the date of
his/her retirement, must meet eligibility requirements for a full retirement annuity
under PERA (Note 14A) without reduction of benefits because of age, disability,
or any other reason for reduction. In addition, the employee must have been
employed full time by the City for the last ten consecutive years prior to the
effective date of retirement. Employees participate in this program on a
voluntary basis.
As of December 31, 1998, seven employees currently participate in this
program. The cost of City paid health care premiums for the years ended
December 31, 1998 and 1997 was $14,861 and $13,204, respectively. In
addition, the expenditures in 1998 and 1997 were increased by $11,104 and
$170,309, respectively, to account for the change in the accrued health
insurance liability. The $1,229,333 recorded as a liability reflects the City's best
estimate of the vested obligation to be funded for fhis program as of December
31, 1998.
Note 14: Defined Benefit Pension Plans Statewide
A. Plan Descriotion
All full-time and certain part-time employees 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
45
Note 14: Defined Benefit Pension Plans Statewide (cont'dl
Fur�d (PEPFF) which are cost sharing, multiple-employer retirement plans.
These plans are established and administered in accordance with Minnesota
Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan.
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 as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established
by State Statute, and vest after three years af credited service. The defined
retirement benefits are based on member's highest average salary for an y five
successive years of allowable 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 Ptan member who retired before July 1, 1997
is 2 percent of average salary for each of the first 10 years of service and 2.5
percent for each remaining year. The annuity accrual rate for Basic members
who retire on or after July 1, 1997 is 2.2 percent of average salary for each of
the first 10 years of service and 2.7 percent for each remaining year. For a
Coordinated Plan memberwho retired before July 1, 1997, the annuity accrual
rate is 1 percent of average salary for each of the first 10 years and 1.5 percent
for each remaining year. For Coordinated members who retire on or after July
1, 1997, the annuit y accrual rates increase b y 0.2 percent (to 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 2.5 percent of average salary
for Basic Plan members and 1.5 percent for Coordinated Plan members who
retire before July 1, 1997. Annuity accrual rates increase 0.2 percent for
members who retire on or after July 1, 1997. For PEPFF members, the annuity
accrual rate is 2.65 percent for each year of service for members who retired
before July 1, 1997. Effective July 1, 1997, the accrual rate is increased to 3.0
percent. For all PEPFF members and PERF members whose annuity is
calculated using Method 1, a full annuity is available when age plus years of
service equal 90. A reduced annuity is also available to eligible members
seeking early retirement.
There are different types of annuities available to members upon retirement.
A normal annuity is lifetime annuity that ceases upon the death of the retiree
no survivor annuity is payable. There are also various types of joint and survivor
annuity options available which wiff reduce the monthly normal annuity amount,
because the annuity is payable over joint lives. Members may also leave their
46
Note 14: Defined Benefit Pension Plans Statewide (cont'd)
contributions in the fund upon termination of public service in order to qualify for
a deferred annuity at retirement age. Refunds of contributions are available at
any time to members who leave public service, but before retirement benefits
begin.
The benefit provisions stated in the previous paragraphs of this section are
current provisions and apply to active plan participants. Vested, terminated
employees who are entitled to benefits but are not receiving them yet, are bound
by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial
statements and required suppfementary information for PERF and PEPFF. That
report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul,
Minnesota 55102 or by calling (651) 296-7460 or 1-800-652-9026.
B. Fundina Policv
Minnesota Statutes Chapter 353 sets the rate for employer and employee
contributions. These statutes are established 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 Plan members are required to contribute 8.23% and 4.23%,
respectively, of their annual covered salary. PEPFF members are required to
contribute 7.60% of their annual covered salary. The City of Brooklyn Center is
required to contribute the following percentages of annual covered payroll:
10.73% for Basic Plan PERF members, 4.48% for Coordinated Plan PERF
members, and 11.40% for PEPFF members. The City's contributions to the
Public Employees Retirement Fund for the years ended December 31, 1998,
1997, and 1996 were $277,561, $218,414, and $214,976, respectively. The
City's contributions to the Pub�ic Empfoyees Police Fire Fund tor the years
ended December 31, 1998, 1997, and 1996 were $269,796, $268,181, �nd
$248,237, respectively. The City's contributions were equal to the contractually
required contributions for each year as set by state statute.
Note 15: Pension Plan Brooklvn Center Fire Denartment Relief Association
Plan Descrintion
The City contributes to the Brooklyn Center Fire Department Relief Association
(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,
including financial statements and required Plan supplementary information, that
is available at the City offices.
47
Note 15: Pension Plan Brooklvn Center Fire Deoartment Relief Association lcont'dl
Fundina Policv and Annual Pension Cost
The City levies 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
enabling state statutes. The minimum tax levy obligation is the financial
contribution requirement for the year less anticipated state aids.
Contributions: Total contrib�tions to the Plan in 1998 were $107,215, of which
$20,179 was levied by the City of Brooklyn Center and $87,036
was from the State of Minnesota. The actuarially determined
contribution based on an actuarial valuation perFormed at
January 1, 1997 was $95,176 which represents funding for
normal cost of $75,000, amortization of the unfunded actuarial
accrued liability of $3,000, and administration of $17,176.
Actuarial valuation date: January 1, 1999 updated from the base year
actuarial study as of January 1, 1997.
Actuarial cost method: Entry age normal cost method.
Amortization method: The Plan had become fully funded by December
31, 1998.
Remaining amortization period: None.
Actuarial assumptions:
Investment rate of return 7.5% compounded annually
Projected salary increases Not applicable
Post retirement benefits None
Three-vear Trend Information
Annual Net
Year Pension APC Pension
Endina Cost (APCI Contributed Obliaation
12/31 /96 $106, 092 $127, 564 0
12/31/97 $108,451 $123,070 $0
12/31/98 $95,176 $107,215 $0
48
Note 15: Pension Plan Brooklvn Center Fire Department Relief Association (cont'dl
Schedule of Fundina Proaress
Actuarial
Actuarial Accrued Excess of
Value of Liability (AAL) Assets Funded
Fiscal Assets Entry Age over AAL Ratio
Year (al (bl (a-bl (a/bl
1996 $2,681,668 $2,369,045 $312,623 113.2%
1997 $2,966,487 $2,603,605 $362,882 113.9%
1998 $3,056,068 $2,617,530 $438,538 116.8%
(1) 1996 and 1998 are based on an actuarial valuation as of 1/1/97 and 1/1/99,
respectively. 1997 is based on an actuarial update of the 1/1/97 actuarial
valuation. I
(2) The Brooklyn Center Fire Department is a volunteer organization; thus no
covered payroll exists.
Related Partv Investments
As of December 31, 1998, the Association held no securities issued by the City
or other related parties.
Note 16: Fund Chanaes
The following funds were opened during 1998:
Debt Service:
GO Street Improvement Bonds of 1998 Fund
GO State Aid Road Refunding Bonds of 1998 Fund
No funds were cfosed during 1998.
Note 17: Residual Epuitv Transfers
The Special Assessment Construction Capital. Projects Fund transferred
$69,270 to the GO Street Improvement Bonds of 1994 Fund to correct for an
error in handling special assessment prepayments that was made in 1994.
Also, the General Fund transferred $125,000 to the Capital Improvements
Capital Projects Fund and $225,000 to the Special Assessment Construction
Capital Projects Fund. The transfers represent funds from the prior year's
surplus of revenues over expenditures. The funds will be used for future park
and street improvements. The amounts are not expected to be repaid and are
reflected as residual equity transfers in the City's financial statements.
�9 r
City of Brooklyn Center, Minnesota
REOUIRED SUFPLEMENTAL SCHEDULE YEAR 2000
GENERAL DESCRIPTION
The City of Brooklyn Center (the City) is currently addressing the Year 2000 (Y2K) issues related
to its computer systems and other electronic equipment. The Y2K issue refers to the fact that many
computer programs use only the last two digits to refer to a year. Therefore both 1900 and 2000
would be referred to as "00." Computer programs which have not been adjusted to recognize the
difference between those two years in programs will fail or create errors. Also, some programs may
not be able to reco nize that 2000 is a lea ear. Further the Y2K issue could effect electronic
g PY
equipment such as environmental systems, elevators, and vehicles containing computer chips that
have date recognition features.
In 1998 the City of Brooklyn Center appointed its Assistant City Manager as coordinator of its Y2K
Committee. The Y2K Committee has identified various computer systems and pieces of electronic
equipment that are critical to conducting the City's operations and need to be Y2K compliant. The
City's Y2K Coordinator is monitoring Y2K compliance efforts at various departments on a quarterly
basis and, along with the City Manager, is assigning resources to accelerate compliance for all
mission critical systems and equipment. The City's Y2K Committee is also monitoring and assisting
departments' efforts to develop contingency plans should any Y2K related failures adversely affect
mission critical operations. Individual departments are solely responsible for the Y2K compliance
of systems and equipment that are not mission critical.
RESOURCES COMMITTED
During 1998 and 1999, the City has or is replacing several mission critical systems as part of the
City's long term capital outlay program. These include the SCADA system for controlling the
Water Utility, the INTRAC system for controlling the Sanitary Sewer Utility, the Police and Fire
radio dispatch and paging system, and the phone system. Vendors of these systems have indicated
that the software and hardware are Y2K compliant.
Additional resources are likely to be needed to resolve all remaining mission critical Y2K issues.
The City has identified its Capital Reserve Emergency Fund to be the source of these funds as the
needs are finally determined.
50
WORK STAGES
The City is performing the following stages of work to address the Y2K issues:
A. Awareness Sta�e
The Awareness Stage involves establishing a budget and project plan for dealing with the
Y2K issues.
B. Assessr�ent Sta�e
The Assessment Stage includes identifying the systems and components for which the Y2K
work in needed.
C. Remediation Sta�e
The Remediation Stage will list the required changes to the systems and equipment for the
Y2K Compliance.
D. Validation and Testin� Sta�e
The Validation and Testing Stage will consist of validating and testing any changes that were
made during the Remediation Stage to make the hardware and software Y2K compliant.
Durin 1998 the Ci contracted with LDSi Consultin Services to conduct an inventorv and
g t3' g
assessment of the City's computer hardware and software. Mission critical hardware and software
applications were determined and manufacturers were contacted for information on their product's
Y2K compliance. A report of these results and recommendations was submitted to the City.
The City has identified the following systems and electronic equipment that are mission critical (that
is, critical to conduction of operations). Those systems are:
1. LOGIS Software
The City contracts with LOGIS for much of its software for its financial accounting system.
The financial software includes:
Payroll
Fund accounting
Utility Billing
Police Computer Aided Dispatch and Police Records Management
Vehicle and EquipmentManagement System
The City has received a letter from LOGIS which states that the status of its systems is as
follows:
Payroll System is complaint with Y2K except for minor issues of non-compliance. These
will not prevent the City from processing payroll after the year 2000.
All other LOGIS systems are Y2K compliant.
51
2. Denartmental comnuter hardware and software
The LDSi assessment identified various items of computer hardware and software which are
Y2K compliant or which need upgrade or replacement to be Y2K compliant. These issues
will be resolved during 1999.
SEC DISCLOSURE
The Cit has identified external arties whose re aredness for Y2K could affect the Cit 's abili
Y P P P Y tY
to provide services and meet its obligations including timely payments of iridebtedness. Examples
of such external parties are as follows:
1. Hennenin Countv (the Countvl
The County is responsible for billing and collecting properry taxes and special assessments.
The County reports that software and hardware used in its billing and collecting procedures
are Y2K compliant.
2. FinancialInstitutions
Various financial institutions are the paying agents for the City's bond issues. The City is
in the process of contacting the financial institutions to determine the testing and validation
status of their wire transfer and paying agent related systems.
Investments for the Cit are held in various financial institutions. The Cit is in the rocess
Y Y P
of contacting financial institutions to determine the remediation status of their wire transfer
and investment related systems.
The City has expended $12,584 (not including internal staff time) associated with fixing the Y2K
issues to date. The City does not have an estimate of future expenditures required to fix remaining
Y2K issues. The City has not incurred losses because of the Y2K issue.
Liabilities associated with the City's Y2K issues at December 31, 1998 are zero.
UNCERTAINTIES
Because of the unprecedented nature of the Y2K issue, its effects and the success of related
remediation efforts will not be fully determined until the year 2000 and thereafter. Management
cannot assure that the City is or will be Y2K ready, that the City's remediation efforts will be
successful in whole or in part, or that parties with whom the City does business will be Y2K ready.
52
Cit of Brookl n Center Minnesota
Y Y
GENERALFUND
The City of Brooklyn Center Horne Rule Charter provides in Section 7.11 that there shall
be maintained in the City Treasury a classification of Funds which shall 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 General Fund was established to account for all 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, intergovernmental, 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 welfare, recreation, and
non-departmental expenditures.
F
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.
53
A-1
City of Brooklyn Center
General Fund
COMPARATIVE BALANCE SHEET
December 31, 1998
1998 1997
ASSETS
Cash and cash equivalents $1,579,370 $2,576,390
investments 6,868,997 5,747,323
Accounts receivable 84,320 51,154
Delinquent taxes receivable 147,435 186,089
Due from other funds 120,238 337,154
Due from other governments 37,937 91,192
Advance to other funds 105,074 105,074
TOTAL ASSETS $8,943,371 $9,094,376
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $397,316 $290,040
Accrued salaries payable 321,940 222,479
Accrued vacation and sick pay 602,396 601,810
Deferred revenue delinquent taxes 147,435 186,089
Deferred revenue tax abatements 136,284 1,174,810
Total Liabilities 1,605,371 2,475,228
Fund Balance:
Reserved for advances to other funds 105,074 105,074
Unreserved fund balance
Designated:
Working capital 5,712,691 5,513,492
Appropriated to next budget 13,535 2,712
Undesignated 1,506,700 997,870
Total Fund Balance 7,338,000 6,619,148
TOTAL LtABILITIES AND FUND BALANCE $8,943,371 $9,094,376
54
A
City of Brooklyn Center
General Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actuai Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Property taxes $7,733,573 $7,980,066 $246,493 $6,789,756
Property tax abatements reserve (30,322) (30,322) (461,866)
Licenses and permits 364,585 549,067 184,482 485,232
intergovernmental 3,848,814 3,875,392 26,578 3,811,900
Charges for services 882,594 771,614 (110,980) 757,640
Courtfines 192,000 193,688 1,688 183,270
Investment earnings 300,000 377,826 77,826 354,597
Change in fair value of investments 35,118 35,118 17,368
Miscellaneous 12,000 12,375 375 1 4,
Total Revenues 13,333,566 13,764,824 431,258 12,042,131
t Expenditures
General government 2,234,395 2,133,829 (100,566) 1,992,251
Public safety 5,316,155 5,137,108 (179,047) 5,089,072
Public works 2,023,166 1,955,108 (68,058) 1,868,130
Community services 80,104 73,066 (7,038) 79,800
Parks and recreation 2,166,277 2,075,180 (91,097) 2,186,686
Economic development 314,500 313,792 (708) 248,779
Non departmental 525,259 312,625 (212,634) 311,436
Administrative Services Reimbursement (715,538) (731,737) (16,199) (661,058)
Total Expenditures 11,944,318 11,268,971 (675,347) 11,115,096
Excess or Deficiency of
Revenues Over Expenditures 1,389,248 2,495,853 1,106,605 927,035
Other Financina Sources or Uses (-1
Operating transfers in 100,000
Operating transfers out (1,378,425) (1,427,001) (48,576) (624,637)
Total Other Financing
Sources or Uses (1,378,425) (1,427,001) (48,576) (524,637)
Excess or Deficiency of Revenues
and Other Financing Sources Over
Expenditures and Other Financing Uses 10,823 1,068,852 1,058,029 402,398
Fund Balance January 1 6,619,148 6,619,148 6,522,498
Equity Transfers Out (350,000) (350,000) (305,748)
Fund Balance December 31 $6,629,971 $7,338,000 $708,029 $6,619,148
55
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, 1998
1998
Actuai Over
or Under(-) 1997
Budget Actual Budget Actual
Ad Valorem Taxes
Gross property taxes $7,126,573 $7,328,286 $201,713 $6,273,163
Penalties and interest (10,524) (10,524) (8,283)
Lodging tax 606,000 660,613 54,613 523,745
Special assessments 1,000 1,691 691 1,131
Total Taxes 7,733,573 7,980,066 246,493 6,789,756 1
Reserve for Pronertv Tax Abatements
Tax abatements under litigation (30,322) (30,322) (461,866)
Total Property Tax Abatements (30,322) (30,322) (461,866)
Licenses and Permits
Liquor and beer 120,800 103,063 (17,737) 138,168
Building permits 130,000 280,851 150,851 211,042
Mechanical permits 30,000 46,563 16,563 51,601
Sewer and water permits 1,500 995 (505) 986
Plumbing permits 18,000 29,508 11,508 23,273
Garbage licenses 2,825 3,060 235 2,180
Taxicab licenses 2,025 625 (1,400) 475
Mechanicallicenses 4,000 5,102 1,102 4,395
Pawn shop licenses 12,100 12,100 8,000
Service station licenses 2,670 2,770 100 2,356
Vehicle dealer licenses 1,400 1,400 1,013
Bowling licenses 1,400 1,970 570 348
Cigarette licenses 3,250 3,417 167 2,017
Sign permits 2,500 3,152 652 2,453
Rental dweliing permits 28,215 38,209 9,994 7,430
Amusement licenses 8,300 7,495 (805) 6,550
Dog licenses 5,700 5,909 209 8,872
Miscellaneous business license 2,000 2,878 878 14,073
Total Licenses and Permits 364,585 549,067 184,482 485,232
interaovernmental
Federal grants:
Miscellaneous grants 7,000 5,208 (1,792) 73,181
Total Federal Grants $7,000 $5,208 ($1,792) $73,181
55
S
(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, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Interaovernmental (continued)
State grants:
Local government aid $2,012,749 $2,012,749 $1,922,164
Local performance aid 37,778 37,778 32,093
Homestead credit aid 1,308,130 1,308,965 $835 1,308,130
Police pension aid 245,000 260,931 15,931 236,535
PERA aid 34,365 34,365 17,183
Fireperson pension aid 88,272 87,036 (1,236) 84,619
Police training 14,000 13,293 (707) 13,675
E-911 phone service 10,750 15,606 4,856 12,724
t� Street maintenance aid 90,000 90,000 90,000
Miscellaneous grants 770 9,461 8,691 21,596
Totai State Grants 3,841,814 3,870,184 28,370 3,738,719
Totallntergovernmental 3,848,814 3,875,392 26,578 3,811,900
Charaes for Services
General government charges 21,900 31,804 9,904 23,666
Public safety charges 23,700 31,980 8,280 25,568
Recreation fees 836,994 707,830 (129,164) 708,406
Total Charges for Services 882,594 771,614 (110,980) 757,640
Court Fines
Fines 192,000 193,688 1,688 183,270
Total Court Fines 192,000 193,688 1,688 183,270
Miscellaneous
Interest on investments 300,000 377,826 77,826 354,597
Change in fair value of investments 35,118 35,118 17,368
Other 12,000 12,375 375 104,234
Total Miscellaneous 312,000 425,319 113,319 476,199
l Total Revenues 13,333,566 13,764,824 431,258 12,042,131
Other Financinp Sources
Operating transfers in:
Liquor Fund 100,000
E_� Total Other Financing Sources 100,000
Total Revenues and Other
Financing Sources $13,333,566 $13,764,824 $431,258 $12,142,131
k_�;'
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, 1998
1998
Actuai Over
or Under(-) 1997
Budget Actual Budget Actual
General Government
Mayor and Council:
Personal services $42,511 $39,337 ($3,174) $40,363
Supplies 400 725 325 777
Services and other charges 80,800 69,395 (11,405) 68,862
Total Mayor and Council 123,711 109,457 (14,254) 110,002
Administrative Office:
Personal services 343,767 311,846 (31,921) 310,301
Supplies 5,200 4,651 (549) 3,411
Services and other charges 80,600 89,432 8,832 84,362
Capital outlay 5,000 5,435 435 2,761
Total Administrative Office 434,567 411,364 (23,203) 400,835
Elections and Voter Registration:
Personal services 57,638 47,803 (9,835) 36,990
Supplies 2,500 941 (1,559) 19
Services and other charges 8,950 4,876 (4,074) 4,267
Total Elections and Voter Registration 69,088 53,620 (15,468) 41,276
Assessor's Office:
Personal services 219,092 205,157 (13,935) 207,761
Supplies 2,850 4,605 1,755 2,948
Services and other charges 36,150 29,382 (6,768) 27,554
Capital outlay 3,500 2,866 (634) 6,079
Total Assessor's Office 261,592 242,010 (19,582) 244,342
Finance:
Personal services 386,376 376,102 (10,274) 371,511
Supplies 5,100 4,332 (768) 3,863
Services and other charges 7,935 6,309 (1,626) 7,070
Capital outiay 13,000 12,043 (957) 8,346
Totaf Finance 412,411 398,786 (13,625) 390,790
Legal:
Services and other charges 198,400 188,756 (9,644) 163,849
Total Legal 198,400 188,756 (9,644) 163,849
Government Buildings:
Personal services 190,416 183,791 (6,625) 161,406
Supplies 52,100 59,074 6,974 36,143
Services and other charges 259,191 261,692 2,501 197,037
Capital outlay 10,200 7,982 (2,218) 14,870
Total Government Buildings $511,907 $512,539 $632 $409,456
58
S
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, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
General Government (continued)
Data Processing:
Personal services $66,456 $59,436 ($7,020) $54,295
Suppfies 10,000 9,325 (675) 9,969
Services and other charges 120,763 121,788 1,025 127,839
Capital outlay 25,500 26,748 1,248 39,598
Total Data Processing 222,719 217,297 (5,422) 231,701
z-�
Total General Government 2,234,395 2,133,829 (100,566) 1,992,251
Public Safetv
r Police Protection:
Personal services 3,530,940 3,437,383 (93,557) 3,391,434
Supplies 66,768 72,336 5,568 61,272
Services and other charges 649,646 588,678 (60,968) 555,519
Capital outlay 31,850 32,742 892 53,235
Total Police Protection 4,279,204 4,131,139 (148,065) 4,061,460
Fire Protection:
Personal services 342,049 344,436 2,387 344,212
Supplies 34,400 34,773 373 32,875
Services and other charges 194,822 192,372 (2,450) 179,705
Capital outlay 45,000 43,639 (1,361) 48,187
Totai Fire Protection 616,271 615,220 (1,051) 604,979
Protective Inspection:
Personal services 315,834 318,011 2,177 287,202
Supplies 2,200 2,495 295 1,917
Services and other charges 34,797 26,100 (8,697) 55,982
Capital outlay 20,000 (20,000)
Total Protective Inspection 372,831 346,606 (26,225) 345,101
i
Emergency Preparedness:
Personal services 38,930 35,292 (3,638) 44,175
t�' Supplies 1,500 1,385 (115) 12,814
Services and other charges 7,419 7,466 47 14,877
Capital outlay 5,666
Total Emergency Preparedness 47,849 44,143 (3,706) 77,532
Total Public Safety $5,316,155 $5,137,108 ($179,047) $5,089,072
`;1
59
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, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Pubiic Works
Engineering Department:
Personal services $540,249 $541,017 $768 $481,997
Supplies 4,900 4,801 (99) 5,312
Services and other charges 27,834 31,688 3,854 20,465
Capital outlay 9,450 10,207 757 8,831
Total Engineering Department 582,433 587,713 5,280 516,605
Street Department:
Personal services 558,785 599,138 40,353 541,236
Supplies 165,750 128,181 (37,569) 135,305
Services and other charges 716,198 637,300 (78,898) 667,790
Capital outlay 2,776 2,776 7,194
Totai Street Department 1,440,733 1,367,395 (73,338) 1,351,525
Total Public Works 2,023,166 1,955,108 (68,058) 1,868,130
Communitv Services
Social Services:
Service and other charges 80,104 73,066 (7,038) 79,800
Total Community Services 80,104 73,066 (7,038) 79,800
Parks and Recreation
Administration:
Personal services 349,399 358,500 9,101 319,060
Supplies 17,500 16,528 (972) 8,251
Services and other charges 61,531 62,312 781 40,778
Capital outlay 5,200 (5,200) 1,932
Total Administration 433,630 437,340 3,710 370,021
Adult Programs:
Personal services 80,808 91,711 10,903 86,855
Supplies 38,025 25,557 (12,468) 27,150
Services and other charges 130,657 108,862 (21,795) 105,478
Capital outlay 4,495
Total Adult Programs 249,490 226,130 (23,360) 223,978
Teen Programs:
Personal services 8,083 5,950 (2,133) 11,042
Supplies 500 1,206 706 1,424
Services and other charges 4,383 2,634 (1,749) 5,199
Total Teen Programs $12,966 $9,790 ($3,176) $17,665
60
S-2
City of Brooklyn Center (Continued next page)
General Fund
r SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
t BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
i' Budget Actual Budget Actual
Parks and Recreation (continuedl
Children's Programs:
Personal services $91,448 $87,022 ($4,426) $85,823
Supplies 13,450 10,194 (3,256) 11,588
Services and other charges 5,044 4,932 (112) 3,601
j' Total Children's Programs 109,942 102,148 (7,794) 101,012
General Programs:
Personal services 23,094 22,938 (156) 26,254
Supplies 150 49 (101) 52
Services and other charges 30,680 27,649 (3,031) 36,293
Total General Programs 53,924 50,636 (3,288) 62,599
Community Center:
Personai services 362,333 365,912 3,579 375,662
Supplies 18,925 19,114 189 56,824
Services and other charges 84,995 80,572 (4,423) 152,741
Capital outlay 2,9�2
J Total Community Center 466,253 465,598 (655) 588,139
Park Maintenance:
Personal services 510,990 482,562 (28,428) 436,641
Supplies 63,500 53,859 (9,641) 56,281
Services and other charges 224,552 209,025 (15,527) 298,799
Capital outlay 41,030 38,092 (2,938) 31,551
r Total Park Maintenance 840,072 783,538 (56,534) 823,272
Total Parks and Recreation 2,166,277 2,075,180 (91,097) 2,186,686
Economic Develo�ment
Convention Bureau:
��f' Services and other charges 314,500 313,792 (708) 248,779
Total Economic Development 314,500 313,792 (708) 248,779
Nondeoartmental
Expenditures not Charged to
Departments:
Personal services 78,764 2,883 (75,881) 3,227
Supplies 27,000 27,852 852 26,443
Services and other charges 419,495 277,336 (142,159) 277,856
Capital outlay 4,554 4,554 3,910
t Total Nonde artmental $525,259 $312,625 ($212,634) $319 ,436
P
t
61
S_2
City of Brooklyn Center (Continued from prior page)
Generai Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 1998 1
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Administrative Service Reimbursement
Charged to other funds ($715,538) ($731,737) ($16,199) ($661,058}
Total Administrative Service Reimbursement (715,538) (731,737) (16,199) (661,058)
Other Financina Uses
Operating transfers out:
Special Assessment Construction Fund 394,197 394,197 394,197
Special Assessment Bonds Debt Service Fund 238,375 257,270 18,895 230,440
Police Fire Building Debt Service Fund 745,853 775,534 29,681
Total Other Financing Uses 1,378,425 1,427,001 48,576 624,637
Total Expenditures and Other Financing Uses $13,322,743 $12,695,972 ($626,771) $11,739,733
62
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The S ecial Revenue Funds are established to account for revenues derived from taxes and/or other s ecific
P P
revenue sources. These resources are usually restricted by statute, City Charter or ordinance to finance specific
City functions or activities.
This fund type utilizes the modified accruai basis of accounting. Revenues are recognized in the accounting
period in which they become available and measurabfe. Expenditures are recognized in the accounting period
in which the related liability is incurred.
Housina and Redevelo�ment Authoritv Fund (H.R.A.I: This fund has authority to levy an ad valorem property tax
for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A.
Fund and all tax proceeds are transferred to that fund.
Economic Develonment Authoritv Fund (E.D.A.I: This fund was established to account for the Economic
Development Authority (E.D.A.) of Brooklyn Center. The E.D.A. carries out activities which previously were done
by the H.R.A., plus 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
also were issued for that purpose.
Tax Increment District No. 3 Fund: This fund has the authority to collect tax increments which are used for various
redevelopment projects within the City and for debt service payments of bonds which also were issued for that
purpose.
Police Drua Forfeiture Fund: This fund was established to account for property and/or cash seized by police
personnel.
Communitv Develooment Block Grant Fund: The fund was established to account for funds received under Title
I of the Housing and Community Development Act of 1974. Transfers are made from this fund to the Economic
Development Authority Fund where accounting for project costs takes place.
Citv initiatives Grant Fund: Revenues and expenditures from grants received from other governmental entities are
accounted for in this fund. Grant programs for 1997 include several public safety grants, an after schoo4
enrichment recreation grant and a local planning assistance grant.
63
City of Brooklyn Center
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 1998
Economic Earle Brown Tax
Development Tax Incr. Increment
Authority Financing District
Fund District No.3
ASSETS
Cash and cash equivalents $566,890 $4,533 $78,363
Investments 2,474,732 19,787 342,092
Accounts receivable 13,954
Delinquent taxes receivable 6,359
Due from other funds 214,891
Due from other governments 2,386 907
TOTAL ASSETS $3,276,826 $26,706 $421,362
LIABILITIES AND FUND BALANCES (DEFICITSI
Liabilities:
Accounts payable $45,387 $53,436
Accrued salaries payable 4,778
Accrued vacation and sick pay 21,904
Due to other funds
Advances from other funds $698,143
Deferred revenue 6,359
Total Liabilities 78,428 698,143 53,436
Fund Balances (Deficits):
Reserved:
Bond proceeds 2,481,353
Unreserved 717,045 (671,437) 367,926
Total Fund Balances (Deficits) 3,198,398 (671,437) 367,926
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $3,276,826 $26,706 $421,362
64
B-1
Community
Police Drug Development City
Forfeiture Block Initiatives Totals
Fund Grant Fund Grant Fund 1998 1997
$4,737 $3,219 $657,742 $1,150,410
20,678 14,053 2,871,342 2,578,557
18,513 32,467 5,750
6,359 8,765
214, 891 136, 017
$171,573 174,866 41,124
$25,415 $171,573 $35 785 $3 957,667 $3,920,623
$3,719 $102,542 $14,808
71 4,849 4,157
21,904 22,757
$171, 573 171, 573
698,143 698,143
6,359 8,765
171,573 3,790 1,005,370 748,630
2,481,353 2,945,726
$25,415 31,995 470,944 226,267
25,415 31,995 2,952,297 3,171,993
$25,415 $171,573 $35,785 $3,957,667 $3,920,623
65
City of Brooklyn Center
Special Revenue Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 1998
Housing
and Economic Earle Brown
Redevelopment Development Tax increment
Authority Authority Financing
Fund Fund District
Revenues
Property taxes $104,294 $171,088 $1,145,815
Intergovernmentai 18,330
Investment earnings 205,426 23,611
Change in fair value of investments 19,094 2,195
Sale of property 221,040
Miscellaneous 37,603
Total Revenues 122,624 654,251 1,171,621
Expenditures
Personal services 174,785
Supplies 131
Services and other charges 262,360 3,184
Capital outiay 266,619
Interest
Total Expenditures 703,895 3,184
Excess or Deficiency of Revenues
Over Expenditures 122,624 (49,644) 1,168,�37
Other Financinp Sources or Uses(-1
Proceeeds from sale of bonds
Operating transfers in 294,197
Operating transfers out (122,624) (500,000) (1,280,000)
Total Other Financing Sources or Uses(-) (122,624) (205,803) (1,280,000)
Excess or Deficiency of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses (255,447) (111,563)
Fund Balances (Deficits) January 1 3,453,845 (559,874}
Equity Transfers In
Fund Balances (Deficits) December 31 $0 $3,198,398 ($671,437)
66
B-2
Tax Police City
Increment Drug Community Initiatives
District Foreiture Development Grant Totals
No. 3 Fund Block Grant Fund 1998 1997
$816,474 $2,237,671 $2,213,886
$171,573 $169,490 359,393 530,922
23,818 $945 3,354 257,154 255,551
2,214 88 182 23,773 12,517
221, 040
14,307 2,395 54,305 34,734
842,506 15,340 171,573 175,421 3,153,336 3,047,610
49,612 224,397 183,794
2,053 2,184 3,787
139,270 68,992 473,806 959,373
54,633 321,252 2,126,448
1,393 1,393
139,270 176,683 1,023,032 3,273,402
703,236 15,340 171,573 (1,262) 2,130,304 (225,792)
294,197 577,895
(570,000) (171,573) (2,644,197) (2,077,895)
(570,000) (171,573) (2,350,000) (1,500,000)
133,236 15,340 (1,262) (219,696) (1,725,792)
234,690� 10,075 33,257 3,171,993 4,892,037
5,748
$367,926 $25,415 $0 $31,995 $2,952,297 $3,171,993
67
B-3
City of Brooklyn Center
Housing and Redevelopment Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Property taxes $125,583 $104,294 ($21,289) $121,575
Intergovernmental 18,304 18,330 26 18,304
Total Revenues 143,887 122,624 (21,263) 139,879
Other Financina Uses
Operating transfers out (143,887) (122,624) 21,263 (139,879)
Excess or Deficiency of
Revenues Over Other Financing Uses
Fund Balance January 1
Fund Balance December 31
6� r
B
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, 1998
1998
ActualOver
or Under(-) 1997
Budget Actual Budget Actua!
Revenues
Property taxes $177,620 $171,088 ($6,532) $174,279
Investment earnings 150,000 205,426 55,426 236,661
Change in fair value of investments 19,094 19,094 11,592
Sale of property 221,040 221,040
Miscellaneous 15,000 37,603 22,603 17,938
Total Revenues 342,620 654,251 311,631 440,470
Expenditures
Personal services 175,452 174,785 (667) 168,740
Supplies 2,500 131 (2,369) 1,462
Services and other charges 356,411 262,360 (94,051) 874,782
Capital outlays 266,619 266,619 2,115,342
Total Expenditures 534,363 703,895 169,532 3,160,326
Excess or Deficiency of
Revenues Over Expenditures (191,743) (49,644) 142,099 (2,719,856)
Other Financin4 Sources
Operating transfers in 391,743 294,197 (97,546) 577,895
Operating transfers out (750,000) (500,000) 250,000
Total Other Financing Sources (358,257) (205,803) 152,454 577,895
Excess or Deficiency of
Revenues and Other Financing Sources
Over Expenditures (550,000) (255,447) 294,553 (2,141,961)
Fund Balance January 1 3,453,845 3,453,845 5,595,806
Fund Balance December 31 $2,903,845 $3,198,398 $294,553 $3,453,845
69
B
City of Brooklyn Center
Earie Brown Farm Tax increment District Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Property taxes $1,183,342 $1,145,815 ($37,527) $1,515,487
Investment earnings 23,611 23,611 9,657
Change in fair value of investrnents 2,195 2,195 473
Total Revenues 1,183,342 1,171,621 (11,721) 1,525,617
Expenditures
Services and other charges 2,000 3,184 1,184 2,269
Total Expenditures 2,000 3,184 1,184 2,269
Excess or Deficiency of
Revenues Over Expenditures 1,181,342 1,168,437 (12,905) 1,523,348
Other Financina Uses
Operating transfers out (1,280,000) (1,280,000) (1,240,000)
Total Other Financing Uses (1,280,000) (1,280,000) (1,240,000)
Excess or Deficiency of
Revenues Over Expenditures
and Other Financing Uses (98,658) (111,563) (12,905} 283,348
Fund Balance (Deficit) January 1 (559,874) (559,874) (843,222)
Fund Balance (Deficit) December 31 ($658,532) ($671,437) ($12,905) ($559,874)
70
B
City of Brooklyn Center
Tax Increment District No. 3 Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Property taxes $883,368 $816,474 ($66,894) $402,545
Investment earnings 23,818 23,818 7,321
Change in fair value of investments 2,214 2,214 358
Total Revenues 883,368 842,506 (40,862) 410,224
Expenditures
Services and other charges 124,801 139,270 14,469 54,987
Total Expenditures 124,801 139,270 14,469 54,987
Excess or DeficienEy of
Revenues Over Expenditures 758,567 703,236 (55,331) 355,237
Other Financina Uses l-1
Operating transfers out (570,000) (570,000) (260,000)
Total Other Financing Uses (570,000) (570,000) (260,000)
Excess or Deficiency of
Revenues Over Expenditures
and Other Financing Uses 188,567 133,236 (55,331) 95,237
Fund Balance January 1 234,690 234,690 139,453
Fund Balance December 31 $423,257 $367,926 ($55,331) $234,690
71
B_7
City of Brooklyn Center
Police Drug Forfeiture Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Forfeited drug money $14,307 $14,307 $6,127
investment earnings 945 945 415
Change in fair value of investments 88 88 2p
Total Revenues 15,340 15,340 6,562
Expenditures
Supplies 2,235
Total Expenditures 2,235
Excess or Deficiency of
Revenues Over Expenditures 15,340 15,340 4,327
Fund Balance January 1 $10,075 10,075
Equity Transfer In 5,748
Fund Balance December 31 $10,075 $25,415 $15,340 $10,075
72
B
City of Brookiyn Center
t Community Development Block Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Intergovemmental:
Federat Grants $247,856 $171,573 ($76,283) $438,016
Totai Revenues 247,856 171,573 (76,283) 438,016
Other Financina Uses
Operating transfers out (247,856) (171,573) 76,283 438,016
Excess or Deficiency of
Revenues Over Other Financing Uses
Fund Balance January 1
Fund Balance December 31
1'
73
B-9
City of Brooklyn Center
City Initiatives Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1998
1998
Actual Over
or Under(-) 1997
Budget Actual Budget Actual
Revenues
Intergovernmental $169,490 $169,490 $74,602
Investment earnings 3,354 3,354 1,497
Change in fair value of investments 182 182 74
Miscellaneous 2,395 2,395 10,669
Total Revenues 175,421 175,421 86,842
Expenditures
Personal services 49,612 49,612 15,054
Supplies 2,053 2,053 90
Services and other charges 68,992 68,992 27,335
Capital outlays 54,633 54,633 11,106
1,393 1,393
Total Expenditures 176,683 176,683 53,585
Excess or Deficiency of
Revenues over Expenditures (1,262) (1,262) 33,257
Fund Balance January 1 $33,257 33,257
Fund Balance December 31 $33,257 $31,995 ($1,262) $33,257
1
74
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 long-term general obligation debt other than
revenue bonds and the City's liability 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 Obliaation Bonds Fund: This fund is used to account for the accumulation of
resources for payment of general obligation bonds and interest thereon.
Tax Increment 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 sold to finance the purchase and redevelopment of the historic Earle Brown Farm and
other various redevelopment projects within the City.
Sqecial Assessment Bonds Fund: This fund is used to account for the accumulation 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.
75
G City of Brooklyn Center
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 1998
General Tax Special
Obligation Increment Assessment Totals
Bonds Bonds Bonds 1998 1997
ASSETS
Cash and cash equivalents $2,082,092 $1,570,444 $602,151 $4,254,687 $1,162,128
Investments 90,699 256,059 487,826 834,584 1,026,983
Special assessments receivabie:
Deferred 2,471,774 2,471,774 1,509,789
Delinquent 10,007 10,007 4,010
Due from other funds 26,013 26,013 50,806
TOTALASSETS $2,172,791 $1,852,516 $3,571,75$ $7,597,065 $3,753,716
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable $63 $750 $812 $1,625 $389
Deferred revenue 2,481,781 2,481,781 1,513,799
Total Liabilities 63 750 2,482,593 2,483,406 1,514,188
Fund Balances:
Reserved for debt service 2,172,728 1,851,766 1,089,165 5,113,659 2,239,528
Total Fund Balances 2,172,728 1,851,766 1,089,165 5,113,659 2,239,528
TOTAL LIABILITIES AND
FUND BALANCES $2,172,791 $1,852,516 $3,571,758 $7,597,065 $3,753,716
76
G2
City of Brooklyn Center
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1998
General Tax Special
Obligation Increment Assessment Totals
Bonds Bonds Bonds 1998 1997
Revenues
Special assessments $537,698 $537,698 $253,169
Intergovernmental $308,878 308,878 308,988
Investment earnings 4,500 $20,246 28,682 53,428 72,220
Change in fair value of investments 1,882 2,377 4,259 1,979
E
Total Revenues 313,378 22,128 568,757 904,263 636,356
Expenditures
Principal 180,000 840,000 265,000 1,285,000 1,135,000
Interest 368,965 715,040 160,918 1,244,923 1,017,128
Fiscal agent fees 1,860 1,700 4,562 8,122 2,060
Bond issuance costs 32,415 32,415
Total Expenditures 583,240 1,556,740 430,480 2,570,460 2,154,188
Excess or Deficiency of Revenues
OverExpenditures (269,862) (1,534,612) 138,277 (1,666,197)� (1,517,832)
I�, Other Financinq Sources or Uses (-1
Proceeds from sale of bonds 1,585,000 3,254 1,588,254 63,818
Operating transfers in 775,534 1,850,000 257,270 2,882,804 1,730,440
Total Other Financing Sources
or Uses 2,360,534 1,850,000 260,524 4,471,058 1,794,258
Excess or Deficienc of Revenues and
Y�)
Other Sources Over Expenditures
and Other Uses 2,090,672 315,388 398,801 2,804;861 276,426
Fund Balances January 1 82,056 1,536,378 621,094 2,239,528 2,260,484
Equity Transfer in (Out) 69,270 69,270 (297,382)
Fund Balances December 31 $2,172,728 $1,851,766 $1,089,165 $5,113,659 $2,239,528
1 77
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS FUNDS
The Capitai Projects Funds are established to account for aii resources used for the
construction or acquisition of capital facilities 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:
Canital Reserve Emeraencv Fund: This fund was established in 1997 to account for monies
held in reserve for catastrophic losses.
Caaital Imnrovements Fund: This fund was established in 1968 to provide funds, and to
account for the expenditure of such funds, for major capital outlays including, but not be limited
to, construction or acquisition of major permanent facilities having a relatively long life; and/or
to reduce debt incurred for capital outlays. The financing sources of the fund include ad
valorem taxation, transfers from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
Municioal State Aid for Construction Fund: This fund was established to account for the state
allotment of gasoline tax collections used for transportation related construction projects.
Snecial Assessment Construction Fund: This fund was established 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 levied against benefitted
properties.
78
D 1 City of Brookiyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1998
Municipal
Capitai State Aid Special
Reserve Capital for Assessment Totals
Emergency Improvements Construction Construction
Fund Fund Fund Fund 1998 1997
ASSETS
Cash and cash equivalents $208,221 $1,721,271 $405,307 $222,719 $2,557,518 $4,905,606
Investments 908,981 7,514,120 1,769,346 972,267 11,164,714 10,967,001
Accounts receivable 3,490 3,490 16,426
Special assessments:
Deferred 510,077 510,077 669,338
Delinquent 101,942 101,942 46,240
Due from other funds 15,911 131,530 30,971 17,019 195,431 576,600
Due from other governments 150,569 150,569 135,564
Advance to otherfunds 1,156,313 593,069 1,749,382 1,827,453
TOTALASSETS $1,133,113 $10,523,234 $2,949,262 $1,827,514 $16,433,123 $19,144,228
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $474,168 $1,559 $41,802 $517,529 $92,964
Contracts payable 149,411 86,105 12,500 248,016 300,021
Due to other funds 715,577
Accrued salaries and wages 238 2,877 3,115 2,577
Deferred revenue 137,726 612,019 749,745 819,728
Total Liabilities 623,579 225,628 669,198 1,518,405 1,930,867
Fund Balances:
Reserved:
Advances to other funds 1,156,312 593,069 1,749,381 1,827,453
Bond proceeds 5,937,869 5,937,869 7,564,900
Unreserved $1,133,113 2,805,474 2,130,565 1,158,316 7,227,468 7,821,008
Total Fund Balances 1,133,113 9,899,655 2,723,634 1,158,316 14,914,718 17,213,361
TOTAL LIABILITIES AND I`
FUND BALANCES $1,133,113 $10,523,234 $2,949,262 $1,827,514 $16,433,123 $19,144,228
79
D-2
City of Brooklyn Center
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1998
Municipal
Capitai State Aid Special
Reserve Capital for Assessment
Emergency Improvements Construction Construction Totals
Fund Fund Fund Fund 1998 1997
Revenues
Special assessments $477,344 $477,344 $765,532
Intergovernmental $392,680 392,680 470,605
Investment earnings $62,522 $628,312 124,348 82,809 897,991 571,795
Change in fair value of
investments 5,811 57,964 11,558 7,697 83,030 24,851
Sale of property 77,157 77,157
Miscellaneous 345 62,400 11,391 74,136 4,927
Total Revenues 68,333 763,778 590,986 579,241 2,002,338 1,837,710
Expenditures
Personal services 6,150 19,221 203,394 228,765 204,989
Supplies 11,409 818 3,799 16,026 8,814
Services and other charges 874,543 105,344 99,445 1,079,332 528,671
Accounts receivable write-off 30,684
Capital outlay 2,766,404 460,143 1,581,984 4,808,531 1,934,137
Interest 50,090
To#al Expenditures 3,658,506 585,526 1,888,622 6,132,654 2,757,385
Excess or Deficiency of Revenues
Over Expenditures 68,333 (2,894,728) 5,460 (1,309,381) (4,130,316) (919,675)
Other Financina Sources or Uses(-)
Proceeds from sale of bonds 1,081,746 1,081,746 8,911,182
Operating transfers in 75,000 394,197 469,197 567,950
Operating transfers out (173,753)
Total Other Financing Sources
or Uses 75,000 1,475,943 1,550,943 9,305,379
Excess or Deficiency of Revenues
and Other Financing Sources
Over Expenditures and
Other Financing Uses 68,333 (2,819,728) 5,460 166,562 (2,579,373) 8,385,704
Fund Balances January 1 1,064,780 12,594,383 2,718,174 836,024 17,213,361 8,230,275
Equity Transfers In 125,000 225,000 350,000 597,382
Equity Transfers (Out) (69,270) (69,270)
Fund Balances December 31 $1,133,113 $9,899,655 $2,723,634 $1,158,316 $14,914,718 $17,213,361
80
S-3
City of Brooklyn Center
Capital Improvements Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1998
Project (Over) Under
1998 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Pool ozonation system $38,500 $32,666 $35,759 $2,741
Central garage improvements 1,133,624 11,547 1,246,867 (113,243)
East fire station project 1,106,000 218,849 256,561 849,439
West fire station project 2,539,000 472,175 624,283 1,914,717
°O Police station project 4,345,000 1,398,758 1,490,039 2,854,961
Telephone system 182,465 207,416 207,416 (24,951)
E. B. Heritage Center 2,500,000 1,122,795 1,122,795 1,377,205
Central Park improvement 4,137 4,137 (4,137)
Playground equipment 90,000 83,230 83,230 6,770
Park shelter renovations 28,654 101,933 101,933 (73,279)
Garden City playground 5,000 5,000 5,000
Totals $11,968,243 $3,658,506 $5,178,020 $6,790,223
S-4
City of Brooklyn Center
Municipal State Aid for Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1998
Project (Over) Under
1998 to Date Expended
Project Appropriation Expenditures Expenditures Appropriations
69th Ave., Shingle Creek Pkwy to Dupont Ave. improvement $1,744,298 $37,773 $1,687,555 $56,743
France Ave., 69th Avenue to North City Limits improvements 398,217 98,354 271,757 126,460
Miscellaneous sidewalk repairs 32,690 8,665 8,665 24,025
Kylawn Park trail linkage 28,650 28,665 28,665 (15)
Brooklyn Boulevard improvements 207,090 2,225 212,380 (5,290)
John Martin Drive street improvements 46,946 45,909 45,909 1,037
Landscape nodes upgrades 48,963 44,521 44,521 4,442
Signal lamp replacement program 80,150 75,434 75,434 4,716
53rd Avenue trail 100,000 1,421 1,421 98,579
Miscellaneous sidewalk retaining wall replacements 58,812 59,484 59,484 (672)
James 67th Avenue improvement 6,150 5,201 5,201 949
Lee 68th Avenue improvement (52,894) (47,855) (47,855) (5,039)
Bellvue neighborhood improvements 239,078 225,729 225,729 13,349
Totals $2,938,150 $585,526 $2,618,866 $319,284
S-5
City of Brooklyn Center
Special Assessment Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1998
Project (Over) Under
1998 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Logan, James and Knox Avenues improvements $746,847 $6,811 $243,603 $503,244
James 67th Avenue overlay 180,541 156,569 156,569 23,972
Orchard Lane West improvements 2,017,610 29,738 1,825,579 192,031
Diseased tree removals 32,418 32,418 (32,418)
O6 Reforestation of 1997 improvement projects 52,958 53,317 53,317 (359)
Bellvue neighborhood street improvements 988,789 878,025 902,894 85,895
St. AI's neighborhood street improvements 337,958 357,980 366,540 (28,582)
68th Avenue and Lee street improvements 196,604 194,707 196,858 (254)
Southeast neighborhood 40,663 40,663 (40,663)
John Martin Drive 129,162 131,168 131,168 (2,006)
Camden 66th Avenue improvement 7,226 7,226 (7,226)
Totals $4,650,469 $1,888,622 $3,956,835 $693,634
City of Brooklyn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were established to account for the financing of self supporting activities
of the City which render services on a user charge basis to the general public.
r 5
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
objectively measurable. Expenses are recognized in the period incurred, if objectively
measurable.
The City's Enterprise Funds included in this section are:
Municinal Liauor Fund: This fund accounts for the operations of the City's three municipal
�-s 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 Heritaae Center Fund: This fund accounts for the o eration of a pioneer
p
farmstead which has been historically preserved and restored as a modern multipurpose
facility. Its cor�vention center can host conferences, trade shows, and concerts seating 1,000
people in either banquet or theater style. The "Inn On The Farm" is a bed and breakfast with
ten rooms available to complement convention activities or be rented individually. Earle's, a
unique special occasion restaurant, is also located at the "Inn on the Farm". Several of the
barns have been restored as unique office settings which have found a niche in the market.
e-' Recvclina and Refuse Fund: This fund accounts for the operation of a state mandated
recycling program. Expansion into refuse collection will take place only when there is a clear
advantage to be achieved by it.
Water Utilitv Fund: This fund accounts for the rovision of water to customers. Administration,
p
wells, water storage, and distribution are included.
Sanitarv Sewer Fund� ion and um in of sanita sewa e
This fund accounts for the collect p p g ry g
through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan
Council Environmental Services whose fees represent about 75% of this fund's expenses.
Storm Drainaae 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 holding ponds and facilities to improve water quality. Fees are based upon
the amount of water running off a property and vary with both size and absorption
characteristics of the parcel.
84
City of Brookiyn Center
Enterprise Funds
COMBINING BALANCE SHEET
December 31, 1998
E. Brown
Municipai Golf Heritage
Liquor Course Center
ASSETS Fund Fund Fund
Current Assets:
Cash and cash equivalents $55,673 $7,236 $23,309
Investments 223,391 29,622
Accounts receivable net 3,786 40 269;882
Accrued revenue
Special assessments receivable:
Deferred
Delinquent
Due from other governments
Inventories 308,534 5,879 23,770
Prepaid expenses 9,369 5,846
Total Current Assets 600,753 42,777 322,807
Fixed Assets:
Mains and lines
Structures 293,531 317,090 10,250,090
Equipment 131,559 23,719 961,711
Land 100,878 1,391,711 1,493,300
Land improvements 12,833 77,450 32,275
538,801 1,809,970 12,737,376
Less: Accumulated Depreciation 233,065 139,821 2,737,391
Total Net Fixed Assets 305,736 1,670,149 9,999,985
Total Assets $906,489 $1,712,926 $10,322,792
LIABIUTIES AND FUND EQUITY
Current Liabilities:
Accounts payable $115,358 $2,800 $206,875
Contracts payable
Accrued salaries payable 12,490 1,289 74,391
Accrued vacation and sick pay 34,488 2,677 26,605
Accrued interest payable
Due to other funds 385,000
Current portion of long-term debt 29,969 50,000
Total Current Liabilities 192,305 56,766 692,871
Long-'�erm Liabilities:
Advances from otherfunds 26,343 1,050,000
Other long term liabilities
Bonds payabie
Total Long-term Liabilities 26,343 1,d50,000
Fund Equity:
Contributions 643,725 9,764,687
Retained earnings (Deficits)
Reserved:
Debt service
Special assessments
Unreserved 687,841 (37,565) (134,766)
Total Fund Equity 687,841 606,160 9,629,921
Total Liabilities and Fund Equity $906,489 $1,712,926 $10,322,792
85 r
E-1
Recycling Water Sanitary Storm
Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund 1998 1997
$14,395 $549,818 $216,702 $246,598 $1,113,731 $1,814,641
62,839 2,400,202 945,999 178,115 3,840,168 3,240,638
14,284 90,388 181,689 63,476 623,545 544,453
27,306 129,304 321,156 136,910 614,676 614,887
97,740 4,680 42,288 144,708 326,074
9,961 647 10,608 4,673
79,143 24,95$ 104,101 187,171
19,490 357,673 340,381
110,864 126,079 142,039
118,824 3,296,903 1,860,233 692,992 6,935,289 7,214,957
11,628,729 9,217,756 6,650,067 27,496,552 24,743,952
5,358,733 2,757,131 18,976,575 17,451,182
19,691 155,531 6,498 1,298,709 1,124,718
23,093 3,389 287,158 3,299,529 2,737,605
11,305 10,786 144,649 97,112
17,041,551 12,133,807 6,954,509 51,216,014 46,154,569
4,632,876 2,722,896 167,971 10,634,020 9,828,433
12,408,675 9,410,911 6,786,538 40,581,994 36,326,136
$118,824 $15,705,578 $11,271,144 $7,479,530 $47,517,283 $43,541,093
$18,882 $145,189 $18,169 $75,389 $582,662 $321,797
49,336 4,000 6,000 59,336 151,056
9,781 2,957 33 100,941 56,312
7,844 5,732 77,346 66,965
29,831 29,831 32,994
385,000 385,000
17.0,000 249,969 243,071
18,882 212,150 30,858 281,253 1,485,085 1,257,195
j 1,076,343 1,156,313
225,208 225,208
1,230,000 1,230,000 1,400,000
225,208 1,230,000 2,531,551 2,556,313
4,997,510 5,668,426 863,964 21,938,312 20,850,160
237,558 237,558 240,390
107,701 4,680 42,935 155,316 330,747
99,942 10,163,009 5,567,180 4,823,820 21,169,461 18,306,288
99,942 15,268,220 11,240,286 5,968,277 43,500,647 39,727,585
$118,824 $15,705,578 $11,271,144 $7,479,530 $47,517,283 $43,541,093
$6
City of Brooklyn Center
Enterprise Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
E. Brown
Municipal Goif Heritage
Liquor Course Center
Fund Fund Fund
Oaeratinq Revenues
Sales and user fees $3,200,585 $290,654 $2,540,085
Cost of sales 2,433,185 36,211 410,628
Gross Margin 767,400 254,443 2,129,457
Ooeratina Expenses
Personal services 396,389 121,482 1,398,512
Supplies 11,699 18,484 159,880
Other services 54,522 49,390 412,878
Insurance 9,679 6,280 24,504
Utilities 24,572 14,141 136,826
Rent 55,003 79,104
Depreciation 40,787 12,697 354,590
Total Operating Expenses 592,651 222,474 2,566,294
Operating Income (Loss) 174,749 31,969 (436,837)
Nonoqeratinq Revenues or Expensesf-)
Investment earnings 12,139 2,993
Change in fair value of investments 1,128 278
Special assessments
I ntergovernmental
Other revenue 8,456
Interest and fiscal agent fees (4,691) (20,005)
Total Nonoperating 17,032 3,271 (20,005)
Income (Loss) Before Operating Transfers 191,781 35,240 (456,842)
Operating Transfers In (Out) (75,000)
Net Income (Loss) 116,781 35,240 (456,842)
Depreciation on contributed assets
that reduces contributed capital 299,430
Retained Earnings (Deficits) Jan. 1 571,060 (72,805) 22,646
Retained Earnings (Deficits) Dec. 31 $687,841 ($37,565) ($134,766)
87
E-2
Recycling Water Sanitary Storm
Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund 1998 1997
$209 007 $1 179 383 2 289 620 940 012 10 649 346 10 327 518
2,880,024 2,698,882
209,007 1,179,383 2,289,620 940,012 7,769,322 7,628,636
r
388,388 206,760 101,500 2,613,031 2,438,518
90,293 13,748 1,054 295,158 281,867
214,575 217,885 1,598,199 95,435 2,642,884 2,737,667
116 6,735 4,158 1,705 53,177 60,252
116,060 23,885 315,484 313,733
134,107 81,415
255,689 185,732 61,508 911,003 902,717
214,691 1,075,050 2,032,482 261,202 6,964,844 6,816,169
(5,684) 104,333 257,138 678,810 804,478 812,467
4,295 167,803 80,723 267,953 368,582
399 15,597 7,503 24,905 18,053
15,156 4,942 2,669 22,767 48,822
907,191 907,191 101,920
41,232 7,000 56,688 15,246
(98,806) (123,502) (180,841)
4,694 239,788 93,168 818,054 1,156,002 371,782
(990) 344,121 350,306 1,496,864 1,960,480 1,184,249
500,000 425,000 (100,000)
(990) 344,121 350,306 1,996,864 2,385,480 1,084,249
299,430 348,738
100,932 9,926,589 5,221,554 3,107,449 18,877,425 17,444,438
$99,942 $10,270,710 $5,571,860 $5,104,313 $21,562,335 $18,877,425
8$
City of Brooklyn Center
Enterprise Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1998
E. Brown
Municipal Golf Heritage
Liquor Course Center
Cash flows from ope�atinq activities: Fund Fund Fund
Operating income (loss) $174,749 $31,969 ($436,837)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation 40,787 12,697 354,590
Changes in assets and liabilities:
Receivables (2,286) (40) (28,296)
inventories (12,563) (769)
Prepaid expenses (2,799) 3,275
Payables 21,998 2,322 41,564
Accrued expenses 7,992 453 43,954
Accrued interest payable
Other nonoperating income 8,456
Net cash provided by (used for)
operating activities 236,334 47,401 (22,519)
Cash flows from noncapital financinq activities:
Proceed5 from borrowings on long term debt
Principal repayments on advance (28,071) (50,000)
Principal repayments on due to other funds
Interest paid on advance from other funds (4,691)
Interest paid on due to other funds (20,005)
Operating transfers in (out) (75,000)
Net cash used for noncapital
financing activities (107,762) (50,000) (20,005)
Cash flows from capital and related
financinq activities:
Capital contributions 6,839 1,174,611
Acquisition and construction of capital assets (39,421) (11,660) (1,261,433)
Principal paid on revenue bonds
Interest paid on revenue bonds
Net cash used for capitai and related
financing activities (39,421) (4,821) (86,822)
Cash flows from investino activities:
Investments purchased (221,925) (29,259)
Investments sold or matured
Interest on investments 12,139 2,993
Net cash provided by (used for)
investing activities (209,786) (26,266)
Net increase (decrease) in cash and
cash equivalents (120,635) (33,686) (129,346)
Cash and cash equivalents at
beginning of the year 176,308 40,922 152,655
Cash and cash equivalents at
end of the year $55,673 $7,236 $23,309
89
E
Recycling Water Sanitary Storm
Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund 1998 1997
($5,684) $104,333 $257,138 $678,810 $804,478 $812,467
255,689 185,732 61,508 911,003 902,717
(400) (31,632) (16,592) 258,866 179,620 199,927
(3,960) (17,�92) 38,678
15,484 15,960 17,529
18,049 69,020 1,816 14,376 169,145 27,409
3,727 (848) (268) 55,010 7,988
(3,163) (3,163) (2,841)
56,388 4,942 916,860 986,646 165,988
11,965 453,565 447,672 1,926,989 3,101,407 2,169,862
225,208 225,208
(78,071) (203,891)
(200,000)
(4,691) (64,436)
(25,206) (45,211) (27,148)
500,000 425,000 (100,000)
225,208 474,794 522,235 (595,475)
206,132 1,387,582 156,784
(1,211,962) (546,448) (2,095,939) (5,166,863) (3,351,103)
(165,000) (165,000) (155,000)
(73,600) (73,600) (89,257)
(1,211,962) (546,448) (2,128,407) (4,017,881) (3,438,576)
(57,824) (2,208,621) (870,490) (163,898) (3,552,017) (2,364,424)
37,281 2,106,080 743,706 90,326 2,977,393 3,905,211
4,295 167,803 80,723 267,953 368,582
(16,248) 65,262 (46,061) (73,572) (306,671) 1,909,369
(4,283) (467,927) (144,837) 199,804 (700,910) 45,180
18,678 1,017,745 361,539 46,794 1,814,641 1,769,461
$14,395 $549,818 $216,702 $246,598 $1,113,731 $1,814,641
9�
E 4 City of Brooklyn Center
Municipal Liquor Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Sales
Liquor $1,013,416 $966,551
Wine 320,164 317,450
Beer 1,670,662 1,536,179
Soft drinks 58,511 57,410
Other merchandise 137,832 129,392
Total Sales 3,200,585 3,006,982
Less: Cost of Sales 2,433,185 2,295,705
Gross Margin 767,400 711,277
Operatina Expenses
Personal services 396,389 376,810
Supplies 11,699 11,903
Other services 54,522 42,742
Insurance 9,679 14,348
Utilities 24,572 26,558
Rent 55,003 38,133
Depreciation 40,787 24,768
Total Operating Expenses 592,651 535,262
Operating Income 174,749 176,015
Nonoperatinq Revenues or Exoenses(-)
Investment earnings 12,139 6,910
Change in fair value of investments 1,128 338
Other revenue 8,456 8,644
Interest and fiscal agent fees (4,691) (6,936)
Total Nonoperating 17,032 8,956
Operating Transfers to Other Funds 75,000 100,000
Net Income 116,781 84,971
Retained Earnings January 1 571,060 486,089
Retained Earnings December 31 $687,841 $571,060
91
E-5
City of Brooklyn Center
Golf Course Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Operatina Revenues
Green fees $218,562 $268,808
Rentals 10,402 12,555
Leagues 7,972 12,647
Golf lessons 5,487 8,692
Concessions 25,610 29,821
Merchandise 19,975 19,324
Pop machine 1,232 1,678
Miscellaneous 1,414 855
Total Operating Revenues 290,654 354,380
Less: Cost of Sales 36,211 39,906
Gross Margin 254,443 314,474
Operatina Exqenses
Personal services 121,482 137,761
Supplies 18,484 23,573
Other services 49,390 49,432
lnsurance 6,280 5,624
Utilities 14,141 11,652
Depreciation 12,697 17,251
Total Operating Expenses 222,474 245,293
Operating Income 31,969 69,181
Nonoperatin4 Revenues or Expenses(-)
Investment earnings 2,993 1,729
Change in fair value of investments 278 85
Interest and fiscal agent fees (57,500)
Total Nonoperating 3,271 (55,686)
Net Income 35,240 13,495
Retained Earnin s Deficit Janua 1 72 805 86 300
9 rY
Retained Earnings (Deficit) December 31 ($37,565) ($72,805}
9�
E 6 City of Brooklyn Center
Earle Brown Heritage Center Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Operatinq Revenues
Conventions $667,981 $672,223
Catering 1,614,577 1,467,157
Inn on the Farm 226,730 311,929
Office Rents 30,797 79,774
Total Operating Revenues 2,540,085 2,531,083
Less: Cost of Sales 410,628 363,271
Gross Margin 2,129,457 2,167,812
Operatina Expenses
Persona� services 1,398,512 1,275,391
Supplies 159,880 148,935
Other services 412,878 481,211
Insurance 24,504 25,142
Utilities 136,826 132,645
Rent 79,104 43,282
Depreciation 354,590 379,413
Total Operating Expenses 2,566,294 2,486,019
Operating Loss (436,837) (318,207)
Nonoqeratina Revenues or Exnenses(-)
Interest and fiscal agent fees (20,005) (27,148)
Total Nonoperating (20,0051 (27,148)
Net Loss (456,842) (345,355)
Depreciation on contributed assets that
reduces contributed capital 299,430 348,738
Retained Earnings (Deficit) January 1 22,646 19,263
Retained Earnings (Deficit) December 31 ($134,766) $22,646
93
E-7
r City of Brooklyn Center
Recycling and Refuse Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Operatina Revenues
Recycling service fees $209,007 $210,070
Oaeratina Expenses
r-�
Other services 214,575 219,354
Insurance 116 105
Total Operating Expenses 214,691 219,459
t
Operating Loss (5,684) (9,389)
Nonoperatina Revenues
Investment earnings 4,295 4,783
Change in fair value of investments 399 234
j
Total Nonoperating 4,694 5,017
Net Loss (990) (4,372)
Retained Earnings January 1 100,932 105,304
Retained Earnings December 31 $99,942 $100,932
94
E-8
City of Brooklyn Center r
Water Utility Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Oqeratina Revenues
Service to customers $1,060,832 $1,006,711
Sale of ineters 24,922 14,400
Penalties 78,404 83,091
Rentals 15,225 12,197
Totai Operating Revenues 1,179,383 1,116,399
Operatina Expenses
Personal services 388,388 353,186
Supplies 90,293 86,813
Contractual services 217,885 201,094
Insurance 6,735 9,874
Utilities 116,060 118,145
Depreciation 255,689 233,746
Total Operating Expenses 1,075,050 1,002,858
Operating Income 104,333 113,541
Nonoperatina Revenues or Expenses(-)
Investment earnings 167,803 243,860
Change in fair value of investments 15,597 11,944
Special assessments (for hookups delinquencies) 15,156 23,114
Other 41,232 546
Totaf Nonoperating 239,788 279,464
Net Income 344,121 393,005
Retained Earnings January 1 9,926,589 9,533,584
Retained Earnings December 31 $10,270,710 $9,926,589
95
E-9
City of Brooklyn Center
Sanitary Sewer Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
,I.' Oaeratina Revenues
Service to customers $2,289,620 $2,251,684
Oaeratina Exqenses
Personal services 206,760 189,167
Supplies 13,748 10,340
f t Contractual services 130,100 107,466
z� Metropolitan Council Environmental Services 1,468,099 1,545,389
Insurance 4,158 3,982
Utilities 23,885 24,733
Depreciation 185,732 187,905
Total Operating Expenses 2,032,482 2,068,982
Operating Income 257,138 182,702
Nono�eratina Revenues
Investment earnings 80,723 107,888
Change in fair value of investments 7,503 5,285
Special assessments (for hookups delinquencies) 4,942 389
Other 6,056
y' Total Nonoperating 93,168 119,618
Net Income 350,306 302,320
Retained Earnings January 1 5,221,554 4,919,234
Retained Earnings December 31 $5,571,860 $5,221,554
1 96
E-10
City of Brooklyn Center
Storm Drainage Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
1998 1997
Operatina Revenues
Service to customers $940,012 $856,920
Oqeratina Expenses
Personal services 101,500 106,203
Supplies 1,054 303
Contractual services 95,435 90,979
Insurance 1,705 1,177
Depreciation 61,508 59,634
Total Operating Expenses 261,202 258,296
Operating Income 678,810 598,624
Nonoperatina Revenues or Expenses(-)
Investment earnings 3,412
Change in fair value of investments 167
Special assessments interest 2,669 25,319
Intergovernmental 907,191 101,920
Other revenue 7,000
Interest and fiscai agent fees (98,806) (89,257)
Total Nonoperating 818,054 41,561
Operating Transfers from Other Funds 500,000
Net Income 1,996,864 640,185
Retained Earnings January 1 3,107,449 2,467,264
Retained�Earnings December 31 $5,104,313 $3,107,449
97 t
City of Brooklyn Center, Minnesota
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement basis, for the financing
�T
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.
i Public Emnlovees Retirement Fund: This fund provides certain health care insurance benefits
for City employees who retire before age 65. Substantially all of the City's full time police and
r fire employees; and all other full time employees hired before July 1, 1989, may be eligible for
those benefits from the time they qualify for an unreduced PERA pension until they reach age
65 or become eligible for Medicare. In the event that future costs would exceed earnings,
other funds would be charged for the costs associated with their employees.
Central Garaae Fund: This fund was established to account for the acquisition and
maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment
1 maintenance, repair, and replacement will be provided from rental rates which the Central
Garage charges City operating departments for use of the equipment.
E
98
F-1
City of Brooklyn Center
Internai Service Funds
COMBINING BALANCE SHEET
December 31, 1998
Public
Employees Central
Retirement Garage Totals
ASSETS Fund Fund 1998 1997
Current Assets:
Cash and cash equivalents $232,771 $738,425 $971,196 $1,582,591
Investments 1,016,150 3,223,559 4,239,709 3,544,237
Accounts receivable 6,797 6,797 4,160
Inventories 4,585 4,585 6,090
Total CurrentAssets 1,248,921 3,973,366 5,222,287 5,137,078
Fixed Assets:
Equipment 5,142,635 5,142,635 4,778,894
Less: Accumulated Depreciation 2,396,179 2,396,179 2,286,861
Total Net Fixed Assets 2,746,456 2,746,456 2,492,033
TOTAL ASSETS $1,248,921 $6,719,822 $7,968,743 $7,629,111
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable $80,221 $80,221 $11,678
Accrued salaries payable 7,516 7,516 6,404
Accrued vacation and sick pay 28,716 28,716 26,502
Accrued health insurance liability $1,229,333 1,229,333 1,218,229
Totai Current Liabilities 1,229,333 116,453 1,345,786 1,262,813
Fund Equity:
Contributions:
General Fund 909,640 909,640 950,000
Debt Service Funds 1,278,703 1,278,703 1,335,437
Capital Projects Funds 7,735 7,735 8,078
Enterprise Funds 563,310 563,310 588,304
General Fixed Asset Account Group 560,965 560,965 585,854
Total Contributions 3,320,353 3,320,353 3,467,673
Retained Earnings (Deficits):
Unreserved 19,588 3,283,016 3,302,604 2,898,625
Total Fund Equity (Deficits) 19,588 6,603,369 6,622,957 6,366,298
TOTAL LIABILITIES�AND FUND EQUITY $1,248,921 $6,719,822 $7,968,743 $7,629,111
99
1
F-2
City of Brooklyn Center
internal Service Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1998
Public
Employees Central
Retirement Garage Totals
Fund Fund 1998 1997
Operatino Revenues
Billings to departments $974,664 $974,664 $1,106,021
'r Sales 56,920 56,920 76,509
Total Operating Revenues 1,031,584 1,031,584 1,182,530
Operatina Exnenses
Personal services $25,965 256,631 282,596 425,558
Supplies 193,448 193,448 222,057
Other services 71,988 71,988 64,262
Insurance 30,537 30,537 28,084
Utilities 4,554 4,554 2,935
Depreciation 511,131 511,131 442,416
i;' Total Operating Expenses 25,965 1,068,289 1,094,254 1,185,312
i
Operating Income (Loss) (25,965) (36,705} (62,670) (2,782)
Nonoperatinq Revenues or Expenses
Investment earnings 69,336 222,836 292,172 290,003
Change in fair value of investments 6,445 20,712 27,157 14,205
Total Nonoperating 75,781 243,548 319,329 304,208
Net Income (Loss) 49,816 206,843 256,659 309,426
Depreciation on contributed assets that
reduces contributed capital 147,320 147,320 177,453
Retained Earnings (Deficit) January 1 (30,228) 2,928,853 2,898,625 2,419,746
Retained Earnings (Deficit) December 31 $19,588 $3,283,016 $3,302,604 $2,898,625
100
1
F-3
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1998
Employee Central
Retirement Garage Tota{s
Fund Fund 1998 1997
Cash flows from operatinq activities:
Operating income (loss) ($25,965) ($36,705) ($62,670) ($2,782)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
Depreciation 511,131 511,131 442,416
Changes in assets and liabilities:
Accounts receivable 2,398 (5,035) (2,637) 1,443
Inventories 1,505 1,505 7,070
Accounts payable 68,543 68,543 (84,886)
Accrued salaries and leave 3,326 3,326 301
Accrued heaith insurance liability 11,104 11,104 170,309
Net cash provided by (used for} operating activities (12,463) 542,765 530,302 533,871
Cash flows from caqital and related
financinp activities:
Acquisition offixed assets (765,554) {765,554) (503,431)
Net cash used for capital and related financing activities (765,554) (765,554) (503,431)
Cash flows from (used for) investina activities:
Investments purchased (935,042) (2,966,258) (3,901,300) (1,790,000)
Investments sold or matured 744,990 2,487,995 3,232,985 1,877,654
Interest on investments 69,336 222,836 292,172 290,003
Net cash provided by (used for) investing activities (120,716) (255,427) (376,143) 377,657
Net increase (decrease) in cash
and cash equivalents (133,179) (478,216) (611,395) 408,097
Cash and cash equivalents at beginning
of the year 365,950 1,216,641 1,582,591 1,174,494
Cash and cash equivalents at end of
the year $232,771 $738,425 $971,196 $1,582,591
101
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, and which are tangible in nature, have a life
longer than the current fiscal year, and have a significant value. Depreciation is not recorded
on those assets.
z
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S-6
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1998
January 1, December 31,
1998 1998
Balance Acquisitions Disposals Balance
Investments in General Fixed Assets
Land $2,369,064 $104,800 $2,473,864
Buildings and improvements 6,610,287 2,284,663 $118,497 8,776,453
Park improvements 3,250,559 104,367 3,354,926
Furniture 1,361,967 77,647 79,139 1,360,475
Departmental equipment 903,795 178,708 4,495 1,078,008
Total Investments in General
Fixed Assets $14,495,672 $2,750,185 $202,131 $17,043,726
Sources of Investments
Generallndebtedness $1,302,146 $2,089,782 $18,157 $3,373,771
General Fund revenues 5,520,457 214,475 76,979 5,657,953
Liquor store income 154,772 2,158 152,614
Contributions 219,303 3,058 216,245
Capital projects funds 6,547,618 445,928 91,302 6,902,244
Federal grants 751,376 10,477 740,899
Total Sources of Investments $14,495,672 $2,750,185 $202,131 $17,043,726
103
S-7
1
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1998
r
Buildings and Park Furniture and
Function Land Improvements Improvements Equipment Totai
General government $662,917 $662,917
Government building $406,070 $7,973,779 $301,340 414,198 9,095,387
Public safety 2,500 115,744 953,759 1,072,003
Publicworks 141,112 141,112
r Recreation 13,821 183,445 197,266
Parks 2,065,294 673,109 3,053,586 83,052 5,875,041
Totals $2,473,864 $8,776,453 $3,354,926 $2,438,483 $17,043,726
�i'
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704
S-8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 1998
1
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 1998 Additions Deductions 1998
v rnment 648 332 93 724 $79 139 $662 917
Generai go e
Government building 6,948,744 2,269,635 122,992 9,095,387
Public safety 967,836 104,167 1,072,003
Public works 119,983 21,129 141,112
Recreation 176,917 20,349 197,266
Parks 5,633,860 241,181 5,875,041
Totafs $14,495,672 $2,750,185 $202,131 $17,043,726
1
1
1
1
1
105
City of Brooklyn Center, Minnesota
GENERAL LONG-TERM DEBT ACCOUNT GROUP
The General� Long-Term Debt Account Group was established to account for the City's
unmatured general obligation long-term debt that is secured by the full faith and credit of the
City and is not the primary obligation of an Enterprise Fund of the City.
:1
1
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y,
.i
r.
e,:.
r ,n6
G
City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1998
December 31
1998 1997
Amounts Available and to be Provided
Amounts Available in Debt Service Funds $5,113,6�9 $2,237,549
Amounts to be Provided:
From future tax levies 10,982,239 11,117,530
From future tax increments 9,733,233 10,889,921
From future gas tax allocations 1,980,000 2,125,000
Total Amounts Available and to be Provided $27,809,131 $26,370,000
General Lona-Term Debt Pavable
General obligation bonds $11,430,000 $10,025,000
Other long term liabilities 54,131
Tax increment bonds 11,585,000 12,425,000
General obligation special assessment bonds
with governmental commitment 4,740,000 3,920,000
Total General Long-Term Debt $27,809,131 $26,370,000
1
107
H
City of Brooklyn Center
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1998
Total Debt
General Obligation Bonds Tax Increment Bonds Special Assessment Bonds Service Requirements
Year Principal Interest Principal Interest Principal Interest Principal Interest
1999 $515,000 $471,588 $1,165,000 $662,232 $405,000 $189,789 $2,085,000 $1,323,609
2000 2,155,000 424,981 1,280,000 595,554 535,000 183,665 3,970,000 1,204,200
2001 655,000 377,651 1,450,000 519,409 535,000 160,889 2,640,000 1,057,949
2002 680,000 350,749 1,540,000 433,892 535,000 137,539 2,755,000 922,180
e-�
2003 705,000 322,356 1,645,000 340,413 540,000 113,520 2,890,000 776,289
r-:
2004 740,000 292,318 1,775,000 237,302 540,000 88,817 3,055,000 618,437
;i
2005 775,000 260,374 360,000 171,123 545,000 63,399 1,680,000 494,896
2006 810,000 226,412 360,000 147,362 450,000 40,019 1,620,000 413,793
2007 540,000 196,640 385,000 122,585 360,000 21,170 1,285,000 340,395
2008 565,000 171,219 385,000 96,694 200,000 8,390 1,150,000 276,303
2009 595,000 144,100 400,000 70,200 95,000 1,995 1,090,000 216,295
2010 625,000 115,274 415,000 42,694 1,040,000 157,968
2011 655,000 84,710 425,000 14,344 1,080,000 99,054
2012 690,000 52,257 690,000 52,257
2013 725,000 17,762 725,000 17,762
$11,430,000 $3,508,391 $11,585,000 $3,453,804 $4,740,000 $1,OQ9,192 $27,755,000 $7,971,387
t
`�1
1 108
Cit of Brookl n Center Minnesota
Y Y
STATISTICAL 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 miscellaneous statistics.
This information is intended to be useful and of interest to investors in City bonds, financial
institutions, and others interested in municipal government financial statistics.
f-
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4
;1
109
TABLE 1
City of Brooklyn Center
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
Fiscal General Public Public Community Parks and Economic Non- Admin. Services Total
Year Government Safety Works Services Recreation Development Departmental Reimbursement Expenditures
1989 $1,793,495 $3,103,222 $1,754,800 $81,043 $1,814,391 $168,305 $347,315 ($389,596) $8,672,975
1990 1,823,298 3,474,108 1,929,950 114,633 1,842,294 169,942 396,550 (472,004) 9,278,771
1991 1,869,394 3,950,862 1,964,441 104,706 1,881,910 177,179 414,149 (427,200) 9,935,441
1992 2,086,494 3,938,920 1,908,437 114,579 1,783,811 187,606 273,273 (602,846) 9,690,274
1993 1,787,179 3,870,563 1,996,256 41,325 1,999,270 178,703 300,803 (466,574) 9,707,525
1994 1,925,003 4,409,490 1,526,514 41,495 2,055,479 199,982 312,779 (528,684) 9,942,058
0
1995 2,069,978 4,598,618 1,653,358 41,146 2,226,121 209,576 289,747 (529,047) 10,559,497
1996 1,968,780 5,022,324 1,649,526 78,442 2,282,054 201,600 317,148 (611,534) 10,908,340
1997 1,992,251 5,089,072 1,868,130 79,800 2,186,686 248,779 311,436 (661,058) 11,115,096
1998 $2,133,829 $5,137,108 $1,955,108 $73,066 $2,075,180 $313,792 $312,625 (�731,737) $11,268,971
Note: Table includes General Fund oniy.
Source: City Finance Department Records
��J ___a
TABLE 2
City of Brooklyn Center
GENERALGOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE
Last Ten Fiscal Years
General Other
Fiscal Property Licenses Intergovern- Charges for Court Financing Total
Year Taxes Permits mental Services Fines Misc. Sources Revenue
1989 $3,325,101 $365,247 $3,628,255 $734,571 $278,812 $425,356 $176,505 $8,933,847
1990 3,854,798 297,495 3,201,888 763,791 215,804 443,623 174,925 8,952,324
1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990
1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351
1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602
1994 5,703,773 317,620 3,443,247 825,959 113,573 241,570 100,000 10,745,742
1995 5,946,363 318,202 3,543,009 822,530 178,263 271,509 100,000 11,179,876
1996 6,120,877 402,000 3,618,075 839,583 186,761 328,750 100,000 11,596,046
1997 6,327,890 485,232 3,811,900 757,640 183,270 458,831 100,000 12,124,763
1998 $7,949,744 $549,067 $3,875,392 $771,614 $193,688 $425,319 $13,764,824
Note: Table includes General Fund only.
Source: City Finance Department Records
TABLE 3
City of Brooklyn Center
TAX LEVIES AND TAX COLLECTIONS
Last Ten Fiscal Years
Collections Percentage Collections
of Current of Levy of Prior Total Delinquent
Year's Taxes Collected Year's Taxes Collections Delinquent Taxes as
Year During Fiscal During Fiscal During Fiscal Total as a°lo of Taxes a% of
Collected Tax Levy Period Period Period Collections Tax Levy Receivable Tax Levy
1989 $3,505,850 $3,418,111 97.50% $55,502 $3,473,613 99.08% $84,948 2.42%
1990 4,092,978 3,857,576 94.25% 12,241 3,869,817 94.55% 221,097 5.40%
1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35%
1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92%
1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45%
1994 5,857,342 5,634,255 96.19% (176,148) 5,458,107 93.18% 246,311 4.21%
1995 6,501,197 6,367,437 97.94% (75,645) 6,291,792 96.78% 288,717 4.44%
1996 6,495,206 6,358,392 97.89% (11,917) 6,346,475 97.71% 208,862 3.22%
1997 6,746,487 6,626,336 98.22% (57,329) 6,569,007 97.37% 186,089 2.76%
1998 $7,687,124 $7,643,080 99.43% ($51,327) $7,591,752 98.76% $146,907 1.91%
Total tax levy is net of Homestead and Agricultural Credit Aid.
Source: City Finance Departmen# Records
i
TABLE 4
Ciiy of Brooklyn Center
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
Last Ten Fiscat Years
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Population (t) 28,578 28,810 28,887 28,558 28,533 28,484 28,463 28,502 28,515 28,535
Real Property
Assessed value: Tax Tax (2) Tax Tax Tax Tax Tax Tax Tax Tax
City: Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capaciry Capacity
Residential $11,834,805 g10,133,274 $9,730,898 $9,193,012 $9,077,238 $9,110,096 $9,045,048 $9,485,333 $9,182,859 $9,309,893
Non-residential 19, 707,624 16,185, 832 16, 305, 868 16,013,701 14,654,123 13,665,143 13,567,573 12,837,157 11,082,436 10,657,588
Area-wide allocation (977,841) (7,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) (586,003) 226,287 537,406
30,564,588 24,953,871 24,651,830 23,656,616 22,197,594 21,820,623 21,925,326 21,736,487 20,491,582 20,504,687
Less Tax Increment District 2,097,505 1,540,St8 7,315,724 1,374,157 1,184,328 1,165,933 1,230,055 1,495,154 1,665,054 2,054,659
Total assessed value 28,467,083 23,413,353 23,336,106 22,282,459 21,013,266 20,654,690 20,695,271 20,241,333 18,826,528 78,450,228
Estimated Market Value 950,463,900 1,000,269,000 1,016,754,000 1,000,829,400 978,404,100 959,668,700 967,811,400 976,175,400 1,010,170,000 1,085,605,600
�'�Personal Property
Assessed value 190,299 530,526 539,121 543,237 549,751 622,500 622,500 573,984 502,668 452,849
Estimaled market value 3,627,500 10,610,520 10,564,700 11,349,900 11,951,100 13,532,600 13,532,600 12,477,900 12,566,700 13,006,300
Total Taxable Property
Assessed value (2) $28,657,382 $23,943,879 $23,875,227 $22,825,696 $21,563,017 $21,277,190 $21,317,771 $20,815,317 $19,329,196 $18,903,047
Estimated market value $954,091,400 $1,010,879,520 $1,027,318,700 $1,Ot2,179,300 $990,355,200 $973,201,300 $975,344,000 $988,593,300 $1,022,736,700 $1,096,611,900
Assessed Value as a percent of
Estimated Market Value 3.00°/, 2.37% 2.32°/, 2.26% 2.18% 2.19°Io 2.19°/, 2.17 1.89% 1.72%
Per Capita Valuations
Assessed Value $1,003 $831 $827 $799 $756 $747 $749 $730 $678 $662
Estimated Market Value $33,386 $35,088 $35,563 $35,443 $34,709 $34,167 a34,267 g34,685 $35,867 $38,501
Source: City Assessing Department Records and Hennepi� County
(7) The Metropolitan Council is the sources of population estimates and they have not yet released the 1996 estimate.
(2) The Minnesota Legistature has repeatedly reduced property tax ciass rates so that assessed vatue has fallen even as market values increased.
City of Brooklyn Center TABLE 5
DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES
Last Ten Fiscal Years
TAX RATES IN TAX CAPACITY RATES(1 2) Hennepin
School Districts (3) County Totai City, School, and County
Year Vo-Tech No.286 No.279 No.281 No.11 Speciai No.286 No.279 No.281 No.11
Coilectible City (2) School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka
1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542
1990 17.479 1.103 42.099 57.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919
1991 19.208 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466
1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335
1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143
1994 27.603 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439
1995 31.090 76.861 70.142 67.197 61.402 45.370 151.763 145.044 142.099 136.304
1996 30.344 58.682 67.155 64.762 64.387 44.170 133.196 141.669 139.276 138.901
1997 32.875 56.260 62.666 63.757 55.588 42.174 131.309 137.715 138.806 130.637
1998 35.214 51.567 56.386 65.350 51.824 45.869 132.650 7 37.469 146.433 132.907
Hennepin
TAX IEVIES IN DOLLARS School Districfs County Total City,
Year Vo-Tech No.286 No.279 No.281 No.11 Special Schoois,
Coliectible City (2) Schooi Earl Brown Osseo Robbinsdale Anoka Districts and County
1989 $3,505,850 $293,205 $4,059,518 $3,770,603 $3,791,546 $2,179,665 $8,776,213 $26,376,600
1990 4,092,978 244,258 3,718,102 3,171,054 4,028,724 1,099,641 8,052,590 24,407,347
1991 4,670,606 234,927 4,169,240 3,266,615 4,365,729 1,207,395 8,992,605 26,907,117
1992 5,072,385 123,029 4,596,776 3,516,409 4,444,416 1,293,144 8,344,678 27,390,837
1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332
1994 5,857,342 $166,681 4,175,027 3,472,013 4,526,288 1,287,264 9,384,582 28,869,197
1995 6,501,197 5,367,479 3,288,144 4,814,025 1,269,585 8,557,035 29,797,465
1996 6,495,206 4,850,400 3,863,698 4,397,705 1,441,657 9,403,100 30,451,766
1997 6,746,487 4,472,206 3,708,238 3,899,126 1,361,059 8,854,518 29,041,634
1998 $7,686,521 $4,322,965 $4,042,283 $3,750,650 $1,420,301 $8,964,681 $30,187,401
Source: City Community Development Department Records and Hennepin County
(1) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989.
(2) Tax levy includes Brooklyn Center E.D.A. and H.R.A..
(3) Beginning in 1998, a portian of the school levy shown was paid by the state as an education homestead credit. The state paid portion totaled $778,800 in 1998.
i
"'y
TABLE 6
City of Brooklyn Center
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Last Ten Fiscal Years
Percent
Current Collections Totai
Special Percent Collection Collections
Year Assessment of of Prior Total to Current I I
Collected Billings Amount Billings Years Collections Levy
1989 $562,484 $545,242 96.93% $59,944 $605,186 107.59%
1990 504,682 476,874 94.49% 14,327 491,201 97.33% I
1991 612,744 595,362 97.16% 23,135 618,497 100.94%
1992 558,265 533,439 95.55% 13,801 547,240 98.03%
1993 488,163 469,814 96.24% 21,188 491,002 100.58%
1994 466,784 444,670 95.26% 7,592 452,262 96.89%
1995 476,852 458,439 96.14% 5,497 463,936 97.29%
1996 485,019 459,316 94.70% 4,617 463,933 95.65%
1997 498,022 475,080 95.39% 2,470 477,550 95.89%
1998 $541,477 $524,609 96.88% $24,870 $549,479 101.48%
Source: City Finance Department Records
TABLE 7
City of Brooklyn Center
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscai Years
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 (1) Fund Debt Vafue Capita
1989 28,578 $28,657,382 $1,130,000 $274,843 $855,157 2.98% 29.92
1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40
1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29
1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79)
1993 28,533 21,563,017 0.00%
1994 28,484 21,277,190 0.00%
1995 28,463 21,317,771 0.00%
1996 28,502 20,815,317 0.00% I
1997 28,515 19,329,196 7,900,000 82,056 7,817,944 40.45% 274.17
1998 28,535 $18,903,047 $7,900,000 $616,778 $7,283,222 38.53% $255.24
Source: City Finance Department Records and Hennepin Counry
(1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds.
`I "I 6 t
Table 8
City of Brooklyn Center
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1998
Market Value 1 098 611 900
Debt limit, 2% of market value 21,972,238
Total bonded debt 29,155,000
Deductions (See Note 6):
Bonds:
1. Special Assessment Bonds 4,740,000
2. State Aid Street Bonds 3 530 000
3. Tax Increment Bonds 11,585,000
4. Utility Revenue Bonds 1,400,000
Total Ded'uctions 21,255,000
Total Debt A licable to Debt Limit
pp 7,900,000
Le al Debt Mar in
g g, December 31, 1998 $14,072,238
Source: City Finance and Community Development Records
c
117
TABLE 9
City of Brooklyn Center
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1998
City's Share
Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $7,900,000 $616,778 $7,283,222 100.0% $7,283,222
Overlapping Debt:
School Districts:
No.281 Robbinsdale 0 0 0 6.92% 0
No.11 Anoka 132,218,490 44,813,739 87,404,751 5.90% 5,156,880
No.279 Osseo 108,710,000 23,847,417 84,862,583 5.83% 4,947,489
No. 286 Earl Brown 3,885,000 500,000 3,385,000 100.00% 3,385,000
Metropolitan Council 132,875,000 28,826,811 104,048,189 0.85% 884,410
Hennepin County 147,500,000 4,232,128 143,267,872 1.65% 2,363,920
Hennepin County Park Reserve District 15,165,000 2,758,047 12,406,953 2.19% 271,712
Total OverlappinQ Debt 540,353,490 104,978,142 435,375,348 17,009,411
Tota� Direct and Overlapping Debt $548,253,490 $105,594,920 $442,658,570 $24,292,633
Direct Overlapping
Comaarative Net Debt Ratios CharQeable to Citv Total Debt Debt
Debt to tax capacity value $18,903,047 128.51 38.53% 89.98°/a
Debt to market value $1,098,611,900 2.21% 0.66% 1.55%
Per capita debt, population 28,535 $851.33 $255.24 $596.09
Source: City Finance Department Records, Hennepin County, and I.S.D. 11, Anoka
{1) Includes only general obligation debt which is being repaid through property taxes.
a■� r �e r
TABLE 10
City of Brooklyn Center
RATiO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
Debt Service
Total Total as a Percent
Debt General Fund of General
Year Principal Interest Service Expenditures Expenditures
1989 $635,000 $626,068 $1,261,068 $9,062,571 13.92%
1990 530,000 585,992 1,115,992 9,434,517 11.83%
1991 940,000 746,401 1,686,401 9,935,441 16.97%
1992 1,880,000 1,195,204 3,075,204 9,690,274 31.73%
1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84%
1994 780,000 1,080,555 1,860,555 9,942,058 18.71%
1995 825,000 1,075,976 1,900,976 10,559,497 18.00%
1996(1) 5,125,000 1,106,661 6,231,661 10,908,340 57.13%
1997 1,135, 000 1, 017,128 2,152,128 11, 739,733 18.33%
1998 $1,285,000 $1,244,923 $2,529,923 $12,695,972 19.93%
Source: City Finance De artment Records
P
(1) Amounts for 1996 are higher because of the defeasance of the Tax
Increment Bonds of 1985.
119
TABLE 11
City of Brooklyn Center
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service
Water Uti�itv Fund
1989 $687,982 $425,030 $1,113,012 $665,629 $447,383 $45,000 $7,180 $52,180 8.574 :1
1990 696,147 440,644 1,136,791 604,497 532,294 45,000 5,425 50,425 10.556 :1
1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48,695 8.147 :1
1992 896,857 316,551 1,213,408 762,405 451,003 45,000 1,940 46,940 9.608 :1
1993 848,134 311,781 1,159,915 659,099 500,816 0 0 0 N/A
1994 1,053,689 284,169 1,337,858 720,973 616,885 0 0 0 N/A
1995 1,048,834 302,136 1,350,970 813,157 537,813 0 0 0 N/A
1996 1,145,040 281,364 1,426,404 759,171 667,233 0 0 0 N/A
1997 1,116,399 267,520 1,383,919 769,112 614,807 0 0 0 N/A
0 1998 $1,179,383 $239,788 $1,419,171 $819,361 $599,810 $0 $0 $0 N/A
Storm Drainaqe Fund (2)
1991 $374,040 $2,628 $376,668 $164,767 $211,901 $0 $0 $0 N/A
1992 494,456 14,030 508,486 207,427 301,059 0 0 0 N/A
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 90,925 90,925 7.44 :1
1996 822,980 47,363 870,343 204,969 665,374 110,000 86,69.0 196,690 3.38 :1
1997 856,920 130,651 987,571 198,662 788,909 155,000 89,257 244,257 3.23 :1
1998 $940,012 $916,860 $1,856,872 $199,694 $1,657,178 $165,000 $98,806 $263,806 6.28 :1
Source: City Finance Department Records
(1) Excludes depreciation and interest on bonds.
(2) The Storm Drainage Fund was established in 1991.
�r r r r �r
TABLE 12
City of Brooklyn Center
PROPERTY VALUE AND CONSTRUCTION
l.ast Ten Fiscal Years
Commercial New Residential
Construction Construction Property Value
Year Value Units Value Commercial Residential Non-Taxable
1989 $7,288,205 4 $278,138 $321,452,800 $678,898,700 $83,719,768
1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768
1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168
1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100
1993 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700
N
1994 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200
1995 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200
1996 12,527,095 18 1,126,000 284,786,600 703,806,700 108,473,400
1997 10,905,475 3 225,000 287,163,000 722,917,000 111,226,700
1998 $14,261,800 4 $612,900 $314,457,700 $770,883,400 $152,964,200
Source: City Finance Department Records and Community Development Department Records.
TABLE 13
City of Brooklyn Center
PRINCIPAL TAXPAYERS
December 31, 1998
Percentag
1998 of Total
Market City Marke
Taxpayers Type of Business Valuation Value
Dayton-Hudson Corp. Retail/Office $27,266,700 2.51
Talisman Brookdale, LLC Shopping Center 21,475,000 1.98%
Prudential insurance Co. Industrial/Office/Hotel 18,199,000 1.68%
Ryan Construction Co. Office/Retaii 15,704,800 1.45%
Lang-Nelson Apartments 15,600,000 1.44% r
Bradley Real Estate Inc. Retail 8,700,900 0.80%
Sears Roebuck and Co. Department Store 8,000,000 0.74%
Brookdale Center Ltd. Retail/Grocery 7,653,400 0.71
J.C. Penny's Department Store 6,077,000 0.56%
AMB Property, LP Industrial 5,525,000 0.51%
Totai Market Value $134,201,800 12.37%
TOTAL CITY MARKET VALUE $1,084,925,900
Source: City Community Development Records
7�z
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 1999
Policy Period
Tvpe of Coveraae and Details From To Liability Limits
I. Statutorv Liabilitv to Emplovees
a. Workers' Compensation 01-01-99 04-01-00 Statutory
(participant in the League of
Minnesota Cities Insurance Trust Self-
Insured Workers' Compensation Program)
II. Liabilitv to the Public
a. Comprehensive general liability include the following additional coverages:
i, (a) All employees as additional insureds
(b) Personal injury coverage to include false arrest, libei, slander, wrongful
entry or eviction or invasion of right of privacy.
(c) Broad contractual liability
(d) Products liability
(e) Public Officials' liability
i
(1) Bodily injury 01-01-99 04-01-00 $750,000 combined singie limit
(2) Property damage 01-01-99 04-01-00 $750,000 combined single limit
(3) Personal injury 01-01-99 04-01-00 $750,000 combined single limit
t b. Automobile liability,
comprehensive 01-01-99 04-01-00
(1) Bodily injury $750,000 occurrence
(2) Property damage $750,000 occurrence
(3) Uninsured motorist $750,000 occurrence
,i
c. Liquor stores' dram shop 01-01-99 01-01-00 $1,000,000 each common
cause
d. Golf Course and Central Park 01-01-99 01-01-00 $1,000,000 each common
liquor liability cause
i
e. Personal accident, Volunteers 01-01-99 01-01-00 $100,Q00 accidental death
$400/week short term disability
$1,000 Medical
123
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 1999
Buildings,
Structures,
Policy Period and Contents
(Replacement
Type of Coverage and Details From To Cost)
III. Insurance on City Property 01-01-99 04-01-00
a. Public and institutional property,
all risk, blanket $36,142,440; $1,000
deductible replacement value on buildings.
(1) Civic Center $9,779,760
(2) East Fire Station $896,580
(3) West Fire Station $851,000
(4) Municipal Service Garage $3,155,500
(5) Elevated Water Towers 3 locations $3,949,440
(6) Park Shelter Buildings 17 focations $1,709,520
(7) Pump Houses 10 locations $1,132,200
(8) Lift Stations 10 locations $1,266,840
(9) Meter Station $18,360
(10) Storage Building $480,420
(11) Outdoor lighting systems 7 locations $326,400
(12) Humboidt Liquor Store $455,940
(13) Leased Liquor Store $233,000
(14) Leased Liquor Store $240,720
(15) Pedestrian Bridge 2 locations $1,221,960
(16) Picnic Shelter $61,200
(17) Earle Brown Heritage Center $9,395,220
(18) Centerbrook Goif Course Club House $380,460
(19) Centerbrook Golf Course Garage $46,920
(20) Lions Park Concession Stand $41,000
Liability Limits
b. Boiler and machinery 01-01-99 04-01-00 $5,000,000 per accident
c. Automotive physical damage 01-01-99 04-01-00
(1) Comprehensive ACV $1,000 deductible
(2) Col�ision ACV $1,000 deductible
IV. Criminal Acts
a. Faithful perFormance blanket position $500,000 per loss
b. Money and securities (broad form) Various
c. Depositor's forgery $100,000
124
TABLE T5
City of Braoklyn Center
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
School Enrollments (3)
Mpis-St. Paul No. 286
Fiscal Unemployment C.P.I. No.11 No.279 No.281 Earle
Year Population (1) Rate (2) %(2) Anoka Osseo Robbinsdale Brown
1989 28,578 3.5% 4.1% 671 1,674 563 1,652
1990 28,887 3.2% 4.1% 642 1,616 540 1,747
1991 28,810 4.6% 2.3% 807 1,680 521 1,327
1992 28,558 4.4% 1.4% 671 1,178 526 1,709
1993 28,533 4.3% 2.7% 691 1,106 540 1,685
1994 28,484 2.6% 2.7% 661 1,071 577 1,681
1995 28,463 2.9% 2.8% 664 1,113 567 1,645
1996 28,502 4.0% 3.3% 670 1109 549 1672
1997 28,515 3.3% 2.3% 680 1,111 586 1,701
1998 28,535 2.5% 1.9% 731 1,756 778 1,701
(1) Source: Metropolitan Council.
(2) Source: Minnesota Department of Jobs and Training, Research and Statistics Dept.
Twin Cities metro area average for year.
(3) School enrollment data was supplied by the schools.
125
TABLE 16
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
December 31, 1998
Date of Incorporation February 14, 1911
Date of Adoption of City Charter November 8, 1966
Date City Charter Effective December 8, 1966 r
Form of Government Council-Manager
Fiscal Year Begins January 1
Area of City 8 1/2 square miles
Miles of Streets:
C�tY 105.856
County 6.49
State 10.79
Miles of Storm Sewers gp g2
Number of Street Lights: Owned by N.S.P 922
Owned by City 100
Building Permits: Number Estimated
Issued Cost
1998 1482 $23,216,525
1997 796 18,274,806
1996 607 16,647,400
1995 603 11,948,205
1994 607 13,418,453
1993 520 11,437,250
1992 573 14,286,465
1991 466 8, 800, 980
1990 504 8,035,605
1989 526 $19,217,696
City Employees as of December 31, 1998
Authorized regular full-time 160
Temporary or part-time 190
Total 350
Fire Protection:
Number of Stations 2
Number of Full-time Employees 1
Number of Volunteer Firefighters 38
Folice Protection.
Number of Stations 1
Number of Full-time Employees 57
Number of Part-time Employees 14
1�6
City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 1998 prior page)
Parks and Recreation:
Park property totals 527 acres developed to serve a wide variety of
recreational interests. Area include playlots, playgrounds, playfields,
trails, nature areas and an arboretum.
Playgrounds 20
Park she4ters 16
Ice skating rinks 13
Hockey rinks 6
Softball diamonds 24
Baseball diamonds 4
Tennis courts 16
Basketball volleyball courts 18
Y Municipal Water Piant:
Number of connections 8,907
Average daily consumption in gallons 3,555,501
Peak dai{y consumption in galfons 7,758,000
Plant capacity galions per day 17,652,000
Miles of water mains 114.65
Number of fire hydrants 956
Number of wells 9
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.89
Municipal Sewer Plant:
Number of connections 8,784
Mi{es of sanitary sewer 105.18
Daily disposal capacity in gallons 10,938,240
Number of lift stati�ns 10
Residential rate per quarter $45.25
Municipal Liquor Stores (Off-sale):
Number of owned stores 1
Number of leased stores 2
1997 sales $3,200,585
Elections:
i' Last General Efection November 3, 1998
Registered voters 17,394
Votes cast 12,224
Percentage of registered voters voting 70.28%
Last Municipal Election November 3, 1998
Registered voters 17,394
Votes cast 12,224
Percentage of registered voters voting 70.28%
127