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HomeMy WebLinkAboutCAFR-1992 COMPREHEN�IVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 1992 GERALD G. SPLINTER, CITY MANAGER Prepared by THE DEPARTMENT OF FINANCE Charles R. Hansen, Director 1 (Member of Government Finance Officers Association of the United States and Canada) Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1992 TABLE OF CONTENTS Exhibit Page Number Number I. INTRODUCTORY SECTION 1 Title Page Table of Contents City Officials 1 Organization Chart 2 City Manager's Letter 3 Finance Director's Letter 4- 13 Certificate of Achievement 14 I II. FINANCIAL SECTION Independent Auditors' Report 15 A. General Purpose Financial Statements (Combined Statements Overview): Combined Balance Sheet All Fund Types and Account Groups 1 17 18 Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types 2 19 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget And Actual General and Special Revenue Funds 3 20 Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Types 4 21 Combined Statement of Cash Flows Proprietary Fund Types 5 22 Notes to Financial Statements 23 49 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1992 TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining, Individual Fund and Account Group Statements and Schedules: General Fund: t Balance Sheet A-1 51 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual A-2 52 Schedule of Revenue Other Financing Sources Budget and Actual S-1 53 55 Schedule of Expenditures Budget and Actual S-2 56 61 Special Revenue Funds: Combining Balance Sheet B-1 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual B-2 64 65 Debt Service Funds: Combining Balance Sheet C-1 67 Comb' ining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 68 Capital Projects Funds: Combining Balance Sheet D-1 70 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 71 Project-Length Schedule of Construction Projects Capital Improvements Fund S-3 72 Project-Length Schedule of Construction Projects Municipal State Aid Construction Fund S-4 73 Project-Length Schedule of Construction Projects Special Assessment Construction Fund S-5 74 i 1 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1992 TABLE OF CONTENTS Statement/ Schedule Page Number Number Schedule of General Fixed Assets By Function and Activity S-7 97 Schedule of Changes in General Fixed Assets By Function and Activity S-8 98 General Long-Term Debt Account Group: Comparative Statement of General Long-Term Debt H 100 Summary of Debt Service Requirements to Maturity I 101 III. STATISTICAL SECTION Table Page Number Number General Governmental Expenditures by Function 1 103 General Governmental Revenues and Other Financing Sources By Source 2 104 Tax Levies and Tax Collections 3 105 Assessed Value and Estimated Market Value of All Taxable Property 4 106 Direct and Overlapping Tax Rates and Tax Levies 5 107 Special Assessment Billings and Collections 6 108 Ratio of Net Bonded Debt to Assessed Value and Net Debt Per Capita 7 109 Computation of Legal Debt Margin 8 110 Computation of Direct and Overlapping Debt 9 111 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 112 Schedule of Water Revenue Bond Coverage 11 113 Property Value, Construction and Bank Deposits 12 114 Principal Taxpayers 13 115 Schedule of Insurance Coverage 14 116-117 Demographic Statistics 15 118 Miscellaneous Statistical Facts 16 119-120 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1992 TABLE OF CONTENTS 5tatement/ Schedule Page Number Number Enterprise Funds: Combining Balance Sheet E-1 76 77 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 78 79 Combining Statement of Cash Flows E-3 80 81 Statement of Revenues, Expenses, and Changes in Retained Earnings Municipal Liquor Fund E-4 82 Statement of Revenues, Expenses, and Changes in Retained Earnings Golf Course Fund E-5 83 Statement of Revenues, Expenses, and Changes in Retained Earnings Earle Brown Heritage Center Fund E-6 84 Statement of Revenues, Expenses, and Changes in Retained Earnings Recycling Refuse Fund E-7 85 Statement of Revenues, Expenses, and Changes in Retained Earnings Water Utility Fund E-8 86 Statement of Revenues, Expenses, and Changes in Retained Earnings Sanitary Sewer Fund E-9 87 Statement of Revenues, Expenses, and Changes in Retained Earnings Storm Drainage Fund E-10 88 Internal Service Funds: Comparative Balance Sheet F-1 90 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings F-2 91 Comparative Statement of Cash Flows F-3 92 Agency Funds: Statement of Changes in Assets and Liabilities Employee Deferred Compensation Fund G 94 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets By Sources S-6 96 Citv of Brooklvn Center CITY OFFICIALS For the Year Ended December 31. 1992 ELECTED OFFICIALS Term of Office Term Expires Mayor Todd Paulson Four Years 12/31/94 Councilmember Celia Scott Four Years 12/31/94 Councilmember David Rosene Four Years 12/31/94 Councilmember Barbara Kalligher Four Years 12/31/96 Councilmember Kristen Mann Four Years 12/31/96 APPOINTED OFFICIALS City Manager Gerald G. Splinter City Clerk Gerald G. Splinter City Treasurer Charles R. Hansen City Attorney Holmes Graven City Prosecutor Carson Clelland Department Heads: Finance Charles R. Hansen Public Works Sy Knapp Police Trevor Hampton Fire Ronald Boman Planning Inspection Ronald Warren Recreation Arnold Mavis Assessing Mark Parish Liquor Stores Gerald Olson Personnel Coordinator Geralyn Barone EDA Coordinator Brad Hoffman City Engineer Mark Maloney Public Works Superintendent Dave Peterson Health Officer Duane Orn, M.D. Fire Marshall Ronald Boman Civil Defense Coordinator Ronald Boman -1- ORGANIZATION CHART COUNCIL-MANAGER PLAN City of Brooklyn Center, Minnesota ADVISORY CHARTER COMMISSION Various Ad Hoc Committee ELECTORATE (appointed by district court) C ADVISORY Housing Commission CITY ATTORNEY i ADVISORY CITY COUNCIL Human Rights Resources Commission PERSONNEL COORDINATOR C ADVISORY Parks Recreation Commission CITY MANAGER EDA COORDINATOR N CITY CLERK ADVISORY Planning Commission DIRECTOR EAR�E Emergency BROWN Prepared- HERITAGE C ADVISORY ness CENTER Financial Commission I I I I_ I I I I I DIRECTOR DIRECTOR DIRECTOR 1 CHIEF DIRECTOR Plannmg DIRECTOR Finance I CHIEF 1 MANAGER ASSESSOR and of Department Police of Volunteer Liquor Public Tax Ins ections Recreation Cit Environmental Fire Works Assessment p Y Department Store Department 1 1 Treasurer J Health Department Department' Department l i —1 1. I I I I Golf �Recreation Course Programs Park 1 Government� Engineering Street Public Maintenance Buildin s Utilities community g Division Division Division Centerbrook Division Division Center i CITY 6301 SHINGLE CREEK PARKWAY oF BROOKLYN CENTER, MINNESOTA 55430 B ROOK LY N TELEPHONE: 569-3300 C ENTER FAX: 569-3494 EMERGENCY POLICE FIRE 911 June 14, 1993 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, 1992. 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 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 Government 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 nine 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. Respectfully submitted, ,.4/ `t"lZ �i°�•� Geral G. Splinter City anager 1986ALL�AMEPoCACRY CITY 6301 SHINGLE CREEK PARKWAY oF BROOKLYN CENTER, MINNESOTA 55430 B ROOK LY N TELEPHONE: 569-3300 C E N T ER FAX: 569-3494 EMERGENCY POLICE FIRE 911 June 14, 1993 Mr. Gerald G. Splinter City Manager City of Brooklyn Center Dear Mr. Splinter: The comprehensive annual financial report of the City of Brooklyn Center for the fiscal year ended December 31, 1992, 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 I enable 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 general purpose financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multi year basis. The city is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and independent auditors' reports on the internal control structure and compliance with applicable laws and regulations, are issued as a separate report. 1 ,�esu��cACm �'���I'� 1 The City provides the full range of municipal services contemplated by statute or charter. This includes public safety (police and fire), streets, sanitation, health and 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. Net revenue produced in excess of working capital requirements by the municipal liquor stores operations have been used toward financing current expenditures and capital outlays of the General Fund. REPORTING ENTITY In accordance with Governmental Accounting Standards Board pronouncements, the City's financial statPments include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies, outstanding debt secured by the City's full faith and credit or revenues, and responsibility of funding deficits. As a result of applying this criteria, certain organizations have been included or excluded from the City's financial statements, as follows: INCLUDED: Housing and Redevelopment Authority (HRA) and Economic Development Authority in and for the City of Brooklyn Center (EDA). HRA and EDA were created by the City to provide housing and redevelopment assistance to Brooklyn Center citizens. They provide this assistance through the administration of various programs. Inasmuch as their governing boards are appointed by the City Council, the Council reviews and approves tax levies, the City provides major community development financing for their activities, and the City Manager is the Executive Director, they are considered to be component units for the City. EXCLUDED: The Brooklyn Center Fire Department Relief Association. This association is organized as a non-profit organization by its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the organization. All funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the association, tax levies, if necessary, are determined by the association and are only reviewed by the City, and the association pays benefits directly to its members. Because the -5- association is able to fund its programs independently of the City, it is excluded from the reporting entity. Independent School District No. 286 (Earle Brown) Independent School District No. 279 (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 287 (Suburban Hennepin County Area Vocational Technical Institute) These districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and prepare and issue their own financial reports. ECONOMIC CONDITION AND OUTLOOK Brooklyn Center is a first ring suburb on the north-west corner of Minneapolis. Its commercial district is anchored by the Brookdale Shopping Center which was built in the 1960s. Other retail and commercial businesses have grown up around the center and vacant land exists to the northeast for a substantial amount of additional business development. The business district is located at the intersection of four major highways which make it a very attractive location. Commercial development has been hurt by the soft national market for real estate. In spite of this, there has been some commercial construction, including an Investor's Savings Bank, an Evergreen Homes elderly assisted living facility, a Champion Auto Store, and an addition to the Medtronic Inc. laboratory. The greatest threat to the City's financial condition seems to come from the State of Minnesota. The State appears to have made open ended commitments to health care, nursing home care, and welfare. These programs are experiencing rapidly increasing costs, causing annual budget crises for the State. Even though the portion of the sales taxes collected by the State and shared with cities represent only about 5% of the State budget, that is where it appears the State turns first to make cuts. This always happens after the cities have set their budgets, leaving them no chance to raise other revenues. For 1992, instead of cutting the shared taxes, the State extended the 6.5% sales tax to city purchases. MAJOR INITIATIVES During 1990, the City began reconstruction of 69th Avenue North, a major collector street on the north side of the City. This four year, $6,000,000 project will widen the street to provide turn lanes, better through traffic capacity, and buffer strips between the street and neighborhood. State aid street bonds in the amount of $3,000,000 were sold in September 1991 to help fund the project. Other major funding is from state shared gasoline taxes. -6- The City of Brooklyn Center, along with three neighboring cities, joined to form the North Metro Convention Bureau. Revenues for the Bureau come from a 30 lodging tax on all hotel and motel rooms in the four cities. The Bureau's purpose is to promote conventions, many of which use the facilities of the Earle Brown Heritage Center. Conventions also generate business for the five hotels, and the many restaurants and retail stores in and around the Brookdale shopping center. In order to understancl the changing needs of its population, the City of Brooklyn Center authorized Maxfield Research Group to conduct an extensive study of the housing market in the community and changes which are impacting the community's ability to retain and attract households. This study presents an extensive survey of neighborhoods, demographic and housing market data analysis, survey of apartments, and interviews with persons knowledgeable about the housing market. As a result of this study, the City has added a housing coordinator and launched a new program to redevelop blighted houses in older neighborhoods. Funding is from the H.R.A.'s tax revenue and the interest off a$1,000,000 account that was set aside from surplus funds from a debt service fund. The City again retained Maxfield Research Group in 1991 to study office, retail, industrial and hospitality markets and make recommendations. Five districts have been evaluated due to their prominence in the community, and perceived under utilization. The study identified numerous opportunities for redevelopment, mostly for industrial sites, which will be pursued in the coming years. In 1992, the cities of Blaine and Brooklyn Park, joined Brooklyn Center in a business retention and market expansion study. Its purpose is to analyze local business needs and recommend ways to develop comprehensive marketing and promotion plans. By involving local businesses in a partnership to strengthen them, we hope to stimulate development, create jobs and build the local tax base. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure 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. The internal control structure is 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. Sinale Audit. As a recipient of federal, state and county financial assistance, the government also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to -7- those programs. This internal control structure is subject to periodic evaluation by management and the independent auditors. As a part of the City's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. The results of the City's single audit for the fiscal year ended December 31, 1992 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. Budaetina Controls. 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 special revenue funds are included in the annual appropriated budget. Project-length financial plans are adopted for the capital projects funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by department. Appropriations lapse at year end and generally are not reappropriated as part of 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. General Fund Functions. The following schedule presents a summary of general fund budgeted revenues for 1993, and actual revenues for the fiscal,year ended December 31, 1992, compared to 1991. General Fund Revenues Other Financina Sources 1992 Increase 1993 1992 1991 Decrease BUDGET ACTUAL ACTUAL From 1991 Taxes $5,350,325 $4,291,322 $4,274,089 17,233 License permits 300,230 332,186 311,751 20,435 Intergovernmental revenue 3,142,142 3,133,495 2,926,570 206,925 Charges for services 1,071,716 794,876 881,213 -86,337 Court fines 200,000 148,701 202,090 -53,389 Misc. revenues 224,000 301,771 360,800 -98,453 Other financing sources 295,000 620,000 877,477 -218,053 TOTAL $10,583,413 $9,622,351 $9,833,990 $-211,639 The total revenues decreased from the prior year because the city changed an accounting practice for wages reimbursed by enterprise and capital projects funds. These wages previously were reported as -8- expenditures in the General Fund, the reimbursement as both a revenue in General Fund and an expense in the other fund. To avoid this double counting of expenditures, they are now only shown in the enterprise or capital project funds. This change eliminated $602,100 from both revenues and expenditures that otherwise would have been in the General Fund. Other financing sources decreased because the City issued $480,000 of certificates of indebtedness in 1992, compared to $700,000 in 1991, to finance capital outlays. The following schedule presents a summary of general fund budgeted expenditures for 1993, and actual expenditures for the fiscal year ended December 31, 1992, compared to 1991. General Fund Ext�enditures 1992 Increase 1993 1992 1991 -Decrease __BUDGET_ __ACTUAL_ __ACTUAL_ From 1991 General Govt $1,667,472 $1,797,895 $1,591,108 $206,787 Public Safety 4,135,405 3,938,920 3,950,862 -11,942 Public Works 1,764,833 1,594,190 1,827,052 -232,862 Community Serv 45,647 114,579 104,706 9,873 Parks Recr 2,185,717 1,783,811 1,870,385 -86,574 Economic Development 190,000 187,606 177,179 10,427 r Non-de artmental 594 339 p 273 273 414 149 -140 876 TOTAL $10,583,413 $9,690,274 $9,935,441 $_245,167 General Government expenditures increased due to increased capital outlays and professional services. Public Works decreased because of the accounting change described above. Non-departmental decreased because workers compensation insurance premiums were allocated out to operating departments for the first time in 1992. GENERAL FUND BALANCE When the 1992 General Fund budget was adopted by the City Council, a portion of the fund balance in the amount of $315,613 was dedicated to finance 1992 appropriations. The fund balance actually decreased by only $67,923 or 1.3� in 1992. The ending fund balance of $5,040,652 is the equivalent of five months of expenditures for the 1993 budget. Property taxes and inter- governmental revenue represent 80% of the budgeted general fund revenue for 1993. The State of Minnesota has structured city finances so all 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. The unreserved, undesignated fund balance is zero as a result of this designation. The City compensates all employees upon termination for unused -9- vacation and one third of unused sick time. Such pay is accrued as a liability and an expenditure/expense as it is earned in all funds. ENTERPRISE OPERATIONS The City's enterprise operations are comprised 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 stores. Two are city owned and one is leased. In May 1989 a new long-term lease was signed for the third store and it was remodeled to improve visibility and access. Sales and profits at this store have improved as a result of the remodeling. Centerbrook Golf Course began operating in 1988 and began operating at a profit since 1990. Green fees have been increasing each year to keep pace with inflation. Expectations are for the golf course to continue to be profitable and it has begun to pay back its construction loan. 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. The Inn On The Farm is a bed and breakfast with eleven rooms available to complement convention activities or to be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. The dwindling supply 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 recycling program are being met. 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 being increased each year to cover inflation and the need for new capital outlays. Three-fourths of the sewer operating expenses are fees paid to the Metropolitan Waste Control Commission for sewage treatment and those fees increased 4.7% in 1992. Planned rate increases should be sufficient to keep them both profitable. During the 1980s, the State of Minnesota passed legislation 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 'i of water discharged into the storm sewer system. During the first two years, this utility will concentrate on doing an engineering study to determine where problems exist with the existing system of -10- storm sewers and the storm water runoff they need to handle. Then construction of additional holding ponds and storm water facilities will begin. AGENCY FUND The Deferred Compensation Agency Fund accounts for the I.C.M.A. Retirement Corporation plan with a market share value totaling $2,241,152 for City employee plan members at year end. DEBT ADMINIST RATION At December 31, 1992, the City had seven debt issues outstanding. These issues included $310,000 of general obligation bonds, 545 000 of certificates of indebtedness 2 885 000 of state aid street bonds, $15,110,000 of tax increment debt with government commitment and $385,000 of special assessment deb t with a contingent liability. The City has an A-1 rating from Moody's Investors Service. Under current state statutes, general obligation bonded debt issuances are subject to a legal limitation based on 2.0 percent of total estimated value. As of December 31, 1991, the general obligation bonded debt of $310,000 was well below the legal limit of $20,243,586 and debt per capita equalled minus $6.79 because of cash in the debt service fund, compared to $4.29 at December 31, 1991. One bond issue was sold during the year. It was General Obligation Tax Increment Refunding Bonds of 1992, for $4,270,000. Certificates of Indebtedness were sold in the amount of $480,000 to finance the purchase of capital equipment in the General Fund. These certificates will be repaid over three years from property taxes. CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to insure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 475. The yield on investments ranged from a high of 8.3 percent to a low of 3.2 percent. Interest earned during 1992 amounted to $2,026,732 compared to $2,139,499 during 1991. The City's written investment policy is to minimize credit and market risk, while maintaining a competitive yield on its portfolio. All deposits were either insured by federal depository insurance or collateralized. At year end, all deposits were collateralized. Cash balances for all funds of the City are maintained on a combined basis and invested, to the extent possible, in short-term securities. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. In the recent past, the City hasn't needed to use any short-term debt and doesn't anticipate such a need in the future. -11- As described in Note 2, the City had $23,260,000 of investments listed in Credit Risk Category 3, as of December 31, 1992. This is in contrast to past years when all investments were in Credit Risk Category 1. The change occurred due to the issuance of the Implementation Guide to GASB Statement 3. The Auditors reviewed this area in light of the new pronouncement and found that the insurance of the custodian of City owned securities did not adequately protect the City in the event of bankruptcy of the custodian. It previously had been the understanding of the City and the Auditors that this insurance was adequate. The City is working with the custodian to see if their insurance can be improved, or an alternative arrangement made for custody of securities, so as to remove any risk to the City. 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 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, 1991. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized 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. -12- ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Department of Finance. We would like to express our appreciation to all members of the Department. We would also like to thank the Mayor, City Council members and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner, and the independent auditors for their valuable and willing assistance. Respectfully submitted, G�uv� R N Charles R. Hansen Director of Finance �',�,�»,.e-�, I�' f Timothy R. Johnson Assistant Director of Finance r -13- Certificate of 1 Achlevement 1 for Exce��ence in Flnancla_ 1 Ae g 1 Presented to Clty of Brook_yn Center, 1 Minnesota For its Com rehensive Annual p Financial F�eport for the Fiscal Year Ended December 31, 1991 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. CE OFF k�� OF iHE UNfIED STATES y W �4 y G1NA0A President 6 CORI'OWUION q� �1F.16II. CNiCA6a Executive Director 1 1 �e oi�e Touch� 400 One Financial Plaza 120 South Sixth Street nn,.,� G�nn� A INDEPENDEN i AUDITORS' REPORT �I�he I Iun��rable Ivlayor and L1emt�t�r� of the City Council of tlle City of Brooklyn Center, Minnesota We have audited the accompanying ger���rai },�:rf��>,� iinanci�i s���t������ent� <�t the �;i�y ��1� Brooklyn Center, Minnesota (the City) as of Derember 31, 1992 and for the year then ��n�it�ci, listed in Section II of the foregoing table of contents. These general ��urpose financial statements are the responsibility of the City's management. C�ur responsihility is t�� ex�,rc�� ar; opinion on these general purpose financial statements based on our audit. We conducted our audit in acc ordanre with generally accepted auditing stanc�arcis an�i Governmerit Auc�iting Star�dards, issued by the Comptroller General of the tJnited StateS. �I h�>ti�� standards require that we plan and perform the audit to obtain reasonable assurance about whether tlie general purpose financial statements are free of material misstatement. An auciit inrludes examining, on a test basis, evidence supporting the amounts and disclosures in thc general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating th�� overall financial statement E�resentati<��1. ���c• 1��_�lic�e lhat <�ur auciil E�r<�vides a rea,c�n�,hle t,a�i5 for our opinion. In our opinion, surh general purpose finailcial stacements present fairly, in all material respects, the financial position of the City of Brooklyn Center, Minnesota at December 31, 1992 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conY��rmily with generall� acceE�t�ci accountin�; princi}�le,. Our audit was conducled fc>r lhe purpc�5t <>1 (�,rming an o�inion on the general purpose financial statements taken as a whole. T11e acc�mpanying combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents, which are also the responsibility of the City's management, are presented for purposes ot` additional analysis and are not a required part of the general purpose financial statements oi the C:ity. Such financial statements and schedules have been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whc�l��. April 16, 1993 DeloitteTouche Tohmatsu I�ernational City of Brooklyn Center, Minnesota GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements are intended to provide a financial overview of 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. t 1 1 �1 1 -16- City of Brooklyn Center EXHIBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December3l, 1992 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long-Term December 31, General Revenue Service Proiects Enterprise Service Agency Assets Debt 1992 1991 ASSETS Cash, cash equivalents and I I i�vestments (Notes 2 &3) $5,939,004 $37,303 $7,279,029 $11,075,818 $4,201,398 $1,017,036 $29,549,588 $27,772.330 Receivables: Accounts 74,079 719 1,745 791,831 868,374 752,241 Delinquent Taxes (Note 1J) 319,112 21,019 11,068 351,199 249,882 v Special assessments: Deferred 31,639 586,902 1,095,734 91,806 1,808,081 2,267,454 Delinquent 1,767 16,016 24,422 3,839 48,04A 35,056 Due from other funds (Note 11) 206,389 208,389 66,922 Due from other governments 9,561 208,389 939,788 104,958 1,280,897 1,010,882 Inventories and supplies (Note 1 G) 283,961 283,981 315,085 j Prepaid expenses 148,588 148,588 125,186 I Interfund advances (Note 11) 105,074 1,872,270 1,977,34k 2,035,038 Restricted investments(Note 1H) 1,000,000 4,000,000 5,000,000 5,121,755 Investments for deferred compensation plan at market (Note 13) $2,241,152 2,241,152 2,046,095 Property, plant and equipment (Note 4) 33,590,497 $15,151,851 48,742,348 46,535,093 Less accumulated depreciation (7,284,180) (7,284,190) (6,482,65� Amount avaifable in Debt Service Funds $7,279,029 7,279,029 3,634,878 Amount to be provided for General Long- Term Debt 11,955,971 11,955,971 12,730,122 Total Assets $6,446,830 $277,817 $7,902,966 $16,227,234 $35,932,689 $1,017,036 $2,241,152 $15,151,851 $19,235,000 $104,432,575 $98,235,362 (See notes to financial statements) City of Brooklyn Center EXHIBIT t Ail Fund Types and Account Groups COMBINED BALANCE SHEET (Continued from prior page) December 31, 1992 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General General Special Debt Capital Internal Fixed Long-Term December3l, LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Proiects Enterprise Service A�ency Assets Debt 1992 1991 Liabilities Accounts payable $277,406 $6,533 $86,654 $294,177 $664,770 $1,237,828 Due to other funds (Note 11) 206,389 206,389 66,922 Accrued salaries and wages 111,371 1,522 18,023 $191,090 322,006 512,841 Accrued vacation sick pay (Note 1 I) 528,290 39,901 568,191 559,497 Intergovernmental payable 49,671 22,880 19,326 91,877 0 Temporary improvement notes (Note 3) 1,525,000 1,414,857 2,939,857 3,413,461 Deferred revenue 489,111 33,407 $623,937 2,069,235 3,215,690 3,192,899 Interfund loans 698,143 1,279,201 1,977,344 2,035,037 Revenue bo�ds payabie (Note 5) 0 45,000 Cert. of indebtedness 8� G.O. bonds payable (Note 5) 855,000 855,000 1.060,000 G.O. state aid street bonds payable (Note 5) 2,885,000 2,885,000 3,000,000 Speciai assessment bonds payable (Note 5) 385,000 385,000 530,000 Tax increment bonds payabie (Note 5) 15,110,000 15,110,000 11,775,000 Deferred compensation funds held for participants (Note 13) $2,241,152 2,241,152 2,046,095 l i Total Liabilities 1,406,178 2,519,143 623,937 3,595,148 1,650,628 191,090 2,241,152 19,235,000 31,462,276 29,474,580 Equitv and Other Credits Contributed capitat (Note 21,874,890 21,874,890 22,067,103 i Investment in general fixed assets $15,151,851 15,151,851 14,243,174 Retained earnings: Reserved: Debt retirement 0 121,755 Special assessments 95,645 95,645 108,378 Plant expansion (Note 1 H) 4,000,000 4,000,000 4,000,000 Unreserved 8,311,526 825,946 9,137,472 8,115,774 Fund Balances (Deficits): Reserved: Debt service 7,279,029 7,279,029 3,634,878 Unexpended appropriations 1,057,958 1,057,958 1,142,651 Dedicated housing account 1,000,000 1,000,000 1,000,000 Interfund loans 105,074 1,872,270 1,977,344 2,035,038 I Bond proceeds 562,130 562,130 2,082,073 Unreserved: Designated: Working capital 4,899,499 4,899,499 4,656,444 Unexpended appropriations 36,079 36,079 347,057 Undesignated (2,241,326) 8,139,728 5,898,402 5,226,457 TotalEquityandOtherCredits 5,040,652 (2,241,326) 7,279,029 12,632,086 34,282,061 825,946 15,151,851 72,970,299 68,760,782 I I TOTAL LIABILITIES, EQUITY OTHER CREDITS $6,446,830 $277,817 $7,902,966 $16,227,234 $35,932,689 $1,017,036 $2,241,152 $15,151,851 $19,235,000 $104,432,575 $98,235,362 (See notes to financial statements) City of Brooklyn Center EXHIBIT 2 All Govemmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES lN FUND BALANCES For the Year Ended December 31, 1992 Totals Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 1992 1991 Taxes and special assessments $4,291,322 $1,397,075 $898,227 $502,804 $7,089,428 $7,781,185 Lice�sesandpermits 332,186 332,186 311,751 Intergovernmental 3,133,495 251,747 157,200 794,617 4,337,059 5,072,162 Charges for services 794,876 18,770 813,646 930,957 Court fines 148,701 148,701 202,090 Investment earnings 262,347 1,205 244,852 922,578 1,430,982 1,415,141 Miscellaneous 39,424 336,327 452,221 827,972 290.763 Total Revenues 9,002,351 2,005,124 1,300,278 2,B72,220 14�979,974 15,404,049 Expenditures Current: General government 1,797.895 1,797,895 1,591,108 Public s�fety 3,938,920 3,938,920 3,950,862 Public works 1,594,190 1,594,190 1,827,052 Community health services 114,579 114,579 104,706 Parks and recreation 1,783,811 29,122 1,812,933 1,926,695 Economic development 187,606 25,681 398,006 611,293 578,042 Nondepartmental 273,273 273,273 414,149 Capital outlay 137,590 3,186,574 3,324,164 2,796,918 Debt service: Principal retirement 1,880,000 1,880,000 940,000 Interest and fiscal charges 119,511 1,282,135 105,511 1,507,157 1,115,027 Total F�cpenditures 9,690.274 311,904 3,162,135 3,690,091 16,854,404 15,244,559 Excess or Deficiencv(-) of Revenues Over Exoenditure (687,923) 1,693,220 (1,861,856) (1,017,871) (1,874,430) 159,490 Other Financins� Sources or Uses(-1 Operating transfers in 140,000 1,236,007 2,165,219 3,541,226 2,073,031 Operating transfers out (1,514,826) (2,296,12� (3,810,953) (2,284,261) Proceeds from sale of refunding bonds 4,270,000 4,270�000 8,996,855 Sate of certificates of indebtedness 480,000 480,000 700,000 Total Other Financinq Sources or Uses(-1 620,000 (1,514,826) 5,50B (130,908) 4,480,273 9,485,625 Excess or Deficiencv(-1 of Revenues and Other Sources Over Exoenditures and Other Uses (67,923) 178,394 3,644,151 (1,148,779) 2,605,843 9,645,115 Fund Balances (Deficitsl Januarv 1 5,108,575 (2,419,720) 3,634,878 13,780,865 20,104,598 10,459,483 Fun lanc d Ba es Deficits December 31 $5 040,652 2 241 326 $7 279 029 $12,632,086 $22,710,441 $20,104,598 (See notes to financiai statements) -19- City of Brooklyn Center EXHIBIT 3 General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 General Fund Special Revenue Funds Actual Over Actual Over Under(-) Under(-) Buds�et Actual Budget Budget Actual Budget Revenues Propertytaxes $4,689,933 $4,291,322 ($398,611) $1,323,500 $1,397,075 $73,575 Licenses and permits 294,836 332,186 37,350 Intergovernmental 2,955,970 3,133,495 177,525 215,761 251,747 35,986 Charge for services 1,012,980 794,876 (218,104) 49,500 18,770 (30,730) Courtfines 210,000 148,701 (61,299) Investmentearnings 350,000 262,347 {87,653) 1,205 1,205 Miscellaneous 33,741 39,424 5,B83 336,327 336,327 Total Revenues 9,547,460 9,002,351 (545,109) 1,588,761 2,005,124 416,363 Expenditures General government 1,874,155 1,797,895 (76,260) Public safety 4,127,528 3,938,920 (188,608) Publicworks 1,794,743 1,594,190 (200,553) Community health services a 119,440 114,579 (4,861) Parks and recreation 2,006,373 1,783,811 (222,562) 65,000 29,122 (35,878) Economic development 182,000 187,606 5,606 53,032 25,681 (27,351) Nondepartmental 378,834 273,273 (105,561) Capital outlay 146,370 137,590 (8,780) Interest and fiscal charges 160,000 119,511 (40,489) Total F�coenditures 10,483,073 8,690,274 (792,799) 424,402 311,904 (112,498) Excess or Deficiencv(-1 of Revenues Over Expenditures (935,613) (687,923) 247,690 1,164,359 1.693,220 528,861 Other Financina Sources or Uses(-) Operating transfers in 140,000 140,000 Operating transfers out (i,330,535) (1,514,526) {184,291j Sale of certificates of indebtedness 480,000 480,000 Total Other Financina Sources or Uses(-) 620,000 620,000 0 (1,330,535) (1,514,826) (184,291) Excess or Deficiencv(-) of Revenues and Other Sources Over Exaenditures and Other Uses (315,613) (67,923) 247,690 (166,176) 178,394 344,570 Fund Balances (Deficits) Januarv t 5,108,575 5,108,575 (2,419,720) (2�419,720) Fund Balances (Deficits) December 31 $4,792,962 $5,040,652 $247,690 ($2,585,896) ($2,241,326) $344,570 (See notes to financial statements) -2�- City of Brooklyn Center EXHIBIT 4 Proprietary Fund Types COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 Internal Totals Enterprise Service (Memorandum Only) Operatinp Revenues Funds Fund 1992 1991 Sales and user fees $7,161,117 $7,161,117 $6,471,067 Cost of sales 2,039,205 2,039,205 2,053,165 Net O�eratin4 Revenues 5,121,912 5,121,912 4,417,902 Operatinp Exp enses Personal services 1,724,539 $2,420 1,726,959 1,198,545 Supplies 205,080 205,080 203,955 Other services 2,232,689 2,232,689 2,591,627 Insurance 43,751 43,751 42,280 Utilities 302,646 302,646 256,339 Rent 53,416 53,416 51,744 Depreciation 818,130 818,130 752,106 Total Oberatina Exqenses 5,380,251 2,420 5,382,671 5,096,596 Operatinp Loss (258,339) (2,420) (260,759) (678,694) Nonoqeratina Revenues or Exnenses Investment earnings 531,703 64,047 595,750 724,358 Special assessments (for service hookups and delinquencies) 28,580 28,580 45,853 Intergovernmental revenue 0 71,862 Other revenue 3,145 3,145 2,537 Interest and fiscal agent fees (84,838) (84,838) (90,816} Nonoqeratina Totals 478,590 64,047 542,637 753,794 Income Before OQeratina Transfers 220,251 61,627 281,878 75,100 Operating Transfers In 334,727 334,727 359,125 Operating Transfers Out(-) (65,000) (65,000) (147,895) Net Income 489,978 61,627 551,605 286,330 Debreciation on contributed assets that reduces contributed canital 335,605 335,605 320,421 Retained Earninas Januarv 1 11,581,588 764,319 12,345,907 11,739,156 Retained Earnings December 31 $12,407,171 $825,946 $13,233,117 $12,345,907 (See notes to financial statements) -21- City of Brooklyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1992 Internal Totals Enterprise Service (Memorandum Only) Cash flows from operatina activities: Funds Fund 1992 1991 Operating loss ($258,339) ($2,420) ($260,759) ($678,694) Adjustments to reconcile operating loss to net cash provided by (used for) operating actvities: Depreciation 818,130 818,130 752,106 Changes in assets and liabilities: Accounts receivable (58,323) (58,323) (169,583) inventories 31,124 31,124 12,112 Prepaid expenses (23,402) (23,402) (17,244) Accounts payable (191,772) (191,772) 115,929 Accrued salaries and leave (11,513) (11,513) 37,646 Accrued health insurance liability (5,779) (5,779) 12,972 Other nonoperating income 31,725 31,725 48,390 Net cash �rovided bv (used for) oaeratin4 activities 337,630 (8,199) 329,431 113,634 Cash flows from noncaoital financina activities: Net repayments under revolving loan arrangement (65,693) (55,693) (46,257) Interest paid on revolving loan (82,898) (82,898) (87,121) Operating grants received 0 0 71,862 Operating transfers in 334,727 334,727 359,125 Operating transfers out (65,000) (65,000) (147,895) Net Cash nrovided bv noncaoital financina activities 121,136 121-136 149,714 Cash flows from caoital and related financina activities: Capital contributions in aid of construction 151,167 751,167 378,847 Acquisition and construction of capital assets (1,303,208) (1,303,208) (1,752,842) Principal paid on revenue bonds (45,000) (45,000) (45,000) Interest paid on revenue bonds (1,940) (1,940) (3,695) Proceeds from sale of equipment 258 1 Net cash used for caoitai and related financina activities (1,198,723) (1,198,723) (1,420,980) Cash flows from investina activities: Interestoninvestments 531,703 64,047 595,750 724,358 Change in restricted assets 121,755 121,755 1,755 Net cash nrovided bv investina activities 653,458 64,047 717,505 726,113 Net increase (decrease) in cash and cash equivalents (86,499) 55,848 (30,651) (431,519) Cash and cash eauivalents at beainnina of vear 4,287,897 961,188 5,249,085 5,680,604 Cash and cash equivalents at end of year $4_201-398 $1 $5_218_434 $5-249�085 (See notes to financial statements) -22- Citv of Brooklvn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1992 Note 1: Summarv of Sianificant Accountina Policies A. Reportina Entitv The City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies, responsibility for funding deficits, and outstandin debt secured b the City's full g Y faith and credit or revenues. As a result of applying the entity definition criteria of the Governmental Accounting Standards Board, certain organizations have been included or excluded from the City's financial statements, as follows: Included: Housing and Redevelopment Authority (HRA) and Economic Development Authority (EDA) in and for the City of Brooklyn Center. HRA and EDA were created by the City to provide housing and redevelopment assistance to Brooklyn Center citizens. They provide this assistance through the administration of various programs. Inasmuch as their governing board is appointed by the City Council, the Council reviews and approves tax levies, the City provides major community development financing for their activities, and the City Manager is the Executive Director, they are considered to be component units for the City. Excluded: The Brooklyn Center Fire Department Relief Association. The Association is or anized as a non- rofit or anization b g P g Y its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the organization. All funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the Association. Tax levies, if necessary, are determined by the Association and are only reviewed by the City, and the Association pays benefits directly to its members. Because the Association is able to fund its programs independently of the City, it is excluded from the reporting entity. State Aid insurance -23- 1 Note 1: Summarv of Si«nificant Accountina Policies (continued) A. Reportina Entitv (continued) premium tax in the amount of $69,110 and ad valorem taxes in the amount of $20, 790 were receipted by the City and disbursed to the Association during 1992. Independent School District No. 286 (Earle Brown) Independent School District No. 279 (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 287 (Suburban Hennepin County Area Vocational Institute) L These districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and issue their own financial reports. 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 seven generic fund types and three broad fund categories as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 1 Special Revenue Funds Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. -24- Note 1: Summarv of Sianificant Accountina Policies (continued) B. Fund Accountina (continued) Capital Proj ects Funds Capital Proj ects 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 primarily through user charges. Internal Service Funds Internal Service Funds are used to account �or the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. FIDUCIARY FUNDS A enc Funds A enc Funds are used to account for assets 9 Y 5 Y held by the City as an agent for others. C. Fixed Assets and Lona-Term Liabilities r The accounting and reporting of fixed assets and long-term liabilities associated 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 thei.r 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. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, j 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. -25- Note 1: Summarv of Sianificant Accountina Policies (continued) C. Fixed Assets and Lona-Term Liabilities (continued) Al1 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 Utility 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. All 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 (i.e., 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 Accountinq Governmental funds and agency 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. Ma�or 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. -26- Note l: Summarv of Sianificant Accountina Policies (continued) D. Basis of Accountinq (continued) 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. E. Budaets and Budaetarv Accountina The City follows these procedures establishing the budgetary data reflected in the financial statements: 1. By the first regular Council meeting 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 propert owner by the second week of Y November. 3. Public hearings are conducted to obtain taxpayer comments. 4. The budgets are legally enacted through passage of a resolution by the City Council not later than the third week of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within any fund. 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 I extent they have not been expended. 8. Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation -27- i Note 1: Summarv of Si«nificant Accountina Policies (continued) E. Budaets and Budaetarv Accountina (continued) bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. 9. Budc�ets for the General and Special Revenue Funds are I adopted on a basis consistent with generally accepted accounting principles. 10. Budgetary control is maintained at the department level, I in compliance with the City Council's directions. 11. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual amendments taere not material I in reZation 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 investments are stated at cost which approximates market except for Deferred Compensation Fund assets. Al1 highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. AI1 of the investments allocated to the proprietary fund types have maturities of 90 days or less. Therefore, the entire balance in such fund types is considered to be cash equivalents. I G. Inventorv Inventories in the proprietary funds are valued at cost, using the first-in/first-out (FIFO) method. The costs of governmental fund type supplies are recorded as expenditures when purchased. H. Restricted Assets and Retained Earninas Investments and Retained Earnings in the amount of $3,700,000 in the Water Utility Fund and $300,000 in the Sanitary Sewer Fund have been restricted for the possible future expansion of the facilities. I. Accumulated Unnaid Vacation and Sick Pav I The City pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expense as it is earned. -28- i Note 1: Summarv of Sianificant Accountina Policies continued 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 Caunty provides tax settlements to cities and other taxing districts two times a year, in June and November. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Minnesota cities operate under a levy limitation law which allows an increase in the tax levy each year equal to the Implicit Price Deflator increase or 3%, whichever is greater, further indexed by the percentage increase in households or population, whichever is greater. Levies for bonded indebtedness are not limited by this law. This limitation has been eliminated for taxes payable beginning in 1993. K. Reclassifications Certain 1991 accounts have been reclassified to conform to the 1992 presentation. L. 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. -29- Note 2: Cash and Investments A. Deposits 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 (140% in the case of mortgage notes pledged). 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, 1992 the carrying amount of the City's demand deposits was $40,138 and the bank balance was $391,159. Of the bank balance, $129,595 was covered by federal depository insurance (risk category A) and the remainder by collateral held in the pledging bank's trust department in the City's name (risk category B). Risk Cateaorv (A) Insured or collateralized by securities held by the City or its agent in 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, but not in the City's name 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. -30- Note 2: Cash and InvPStments (continued) B. Investments (continued) (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. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers 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 repurchase agreements with banks that are 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. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. 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 incZudes 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. Balances at December 31, 1992 Credit Risk Category Carrying Market Securities Type 1_ 2 3 Amount Value U.S. Governments $4,686,100 $12,085,000 $16,771,100 $16,965,951 Federal Agencies 11,175,000 11,175,000 11,064,686 $4,686,100 $0 $23,260,000 $27,946,100 $28,030,637 -31- NOTE 2: Cash and Investments (continued) I SUMMARY OF CASH AND INVESTMENTS Balances at December 31, 1992 Cash in Banks: Carrying Amount Marquette Bank Brookdale, Brooklyn Center, Minnesota $35,005 First National Bank of Minneapolis, Minnesota 243 First National Bank of Omaha, Nebraska 4,876 American Bank, St. Paul, Minnesota Total Cash in Bank $40,138 Investments: Investment Tv�e Interest Rate Maturitv U.S. Treasury bond 2.4-7.3% 1993-1996 $16,771,100 Federal Home Loan Bank bonds 4.4-8.3% 1993-1997 5,200,000 Federal National Mortgage Association bonds 6.3-8.2% 1994-1997 5,135,000 Federai Farm Credit Bank bonds 3.2-3.4% 1993 840,000 Total I nvestments $27,946,100 Minnesota Municipal Money Market 2,617,674 Money Market Fund, First Trust, St. Paul, Minnesota 429,358 Total Cash and Investments $31,033,270 Accrued interest on investments 264,736 Discounts on investments (220,889) Premiums on investments 15,329 Change funds 5,635 Performance Deposits (33,350) Certificates of Indebtedness 545,000 Temporary fmprovement Notes (Note 3) 2,939,857 Total Cash, Cash Equivalents, Investments, and Restricted Investments $34,549,588 Other Assets Pools =_Deferred Compensation Plan $2,241,152 From Exhibit 1, COMBINED BALANCE SHEET t Cash and investments $29,549,588 Restricted investments 5,000,000 $34,549,588 -32- Note 3: Temborarv Improvement Notes Temporary Improvement Notes represent interfund borrowing to provide interim financing for construction projects or capital outlay expenditures. Such loans bear interest at 8 percent and totaled $2,939,857 and $3,413,461 at December 31, 1992 and 1991, respectively. For collection purposes, all of these notes are considered current, since they are payable on demand. Individual fund note balances at December 31, 1992 were as follows: Interfund Interfund Receivable Pavable General $856,200 E. Brown T.I.F. District $1,525,000 Park Bonds of 1980 72,814 Tax Increment Bonds of 1985 76,473 Tax Increment Bonds of 1991 95,081 Refunding Bonds of 1987 202,345 Capital Improvements Fund 814,430 M.S.A. Construction Fund 553,099 Spec Assess Construct Fund 1,414,857 Economic Development Authority 269,415 TOTALS $2,939,857 $2,939,857 N ote 4: Fixed Assets Changes in the General Fixed Assets Account Group during 1992 were as follows: Balance Balance Jan. 1, Dec. 31, 1992 Additions Disnosals 1992 Land $2,213,061 $155,398 $2,368,459 Buildings Improvements 4,588,978 267,865 $140 4,856,703 Park Improvements 2,858,857 10,255 2,869,112 Furniture Fixtures 741,046 219,391 22,835 937,602 Departmental Equipment 3,841,232 459,278 180,535 4,119,975 TOTAL GENERAL FIXED ASSETS $14,243,174 $1,112,187 $203,510 $15,151,851 -33- Note 4: Fixed Assets (continuedl Changes in the Municipal Liquor Fund Fixed Assets (at cost) during 1992 were as follows: Balance Balance Jan. 1, Dec. 31, 1992 Additions Disqosals 1992 Land $107,405 $107,405 Land Improvements 4,228 4,228 Buildings Improvements 294,852 294,852 Leasehold Improvements 27,834 27,834 Furniture Fixtures 127,668 $4,253 $10 131,911 Departmental Equipment 16,464 16,464 TOTAL MUNICIPAL LIQUOR $578,451 $4,253 $10 $582,694 Changes in the Golf Course Fixed Assets (at cost) during 1992 were as follows: Balance BalanCe Jan. 1, Dec. 31, 1992 Additions Disposals 1992 Land $1,391,711 $1,391,711 Land Improvements 30,728 30,728 Buildings Improvements 303,321 303,321 Furniture 8� Fixtures 17,711 17,711 Departmental Equipment 105,384 $16,401 121,785 TOTAL GOLF COURSE $1,848,855 $16,401 $0 $1,865,256 Changes in the Earle Brown Heritage Center Fixed Assets (at cost} during 1992 were as follows: Balance Balance Jan. 1, Dec. 31, 1992 Additions Disposals 1992 Land $925,000 $925,000 Buildings Improvements 9,405,894 $101,526 9,507,420 Furniture Fixtures 812,465 35,511 $1,535 846,441 Departmental Equipment 67,723 14,130 81,853 TOTAL E. B. H.C. $11,211,082 $151,167 $1,535 $11,360,714 -34- N 4: ote Fixed Assets (continuedl Changes in the Water Utility Fund Fixed Assets (at cost) during 1992 were as follows: Balance Balance Jan. 1, Dec. 31, 1992 Additions Dis�osals 1992 Land $23,938 $23,938 Land Improvements 2,600 2,600 Buildings Improvements 4,109,105 $26,988 4,136,093 Mains and Lines 7,650,905 63,849 7,714,754 r Machinery Equipment 123,865 98,121 $29,425 192,561 TOTAL WATER UTILITY $11,910,413 $188,958 $29,425 $12,069,946 Chan es in the Sanitar Sewer Fund Fixed Assets at cost durin 1992 were as follows: 9 Y 9 Balance Balance Jan. 1, Dec. 31, 1992 Additions Dist�osals 1992 Land $3,388 $3,388 Buildings Improvements 1,372,980 $545,842 $11,138 1,907,684 Mains and Lines 5,206,690 356,789 5,563,479 Machinery Equipment 160,060 32,767 20,192 172,635 TOTAL SANITARY SEWER $6,743,118 $935,398 $31,330 $7,647,186 Changes in the Storm Drainage Fund Fixed Assets (at cost) during 1992 were as follows: Balance Balance Jan. 1, Dec. 31, 1992 Additions Dis os I 1992 q as Furniture Fixtures 2 146 2 146 Departmental Equipment 62,555 62,555 TOTAL STORM DRAINAGE $0 $64,701 $0 $64,701 -35- i Note 5: Lona-Term Debt The City's long-term debt includes general obligation bonds, certificates of indebtedness, state aid street bonds, tax increment bonds, and improvement bonds; all of which are recorded in the General Long-Term Debt Account Group. The following is a summary of bond transactions of the City for the year ended December 31, 1992: General Obligatian Bonds G.O. State Special G.O. Tax Water Certificates Aid Street Assessment Increment Revenue of Indebtedness Bonds Bonds Bonds Bonds Total Bonds payable January 1 $1,060,000 $3,000,000 $530,000 $11,775,000 $45,000 $16,410,000 Bonds issued 480,000 4,270,000 4,750,000 Bonds retired 685,000 115,000 145,000 935,000 45,000 1,925,000 Bonds payable December 31 $855,000 $2,885,000 $385,000 $15,110,000 $0 $19,235,000 General Obliaation Bonds Certificates of Indebtedness General Obligation Bonds and Certificates of Indebtedness are backed by the full faith and credit of the City and are paid from property taxes. G.O. State Aid Street Bonds Future allotments from Municipal State Aid for Streets will repay these bonds which are backed by the full faith and credit of the City. S�ecial Assessment Refundinq Bonds These bonds are payable primarily from special assessments levied and collected for local improvements. The City has a contingent liability relating to a pledge of full faith and credit on the Special Assessment Bonds The general credit of the City is obligated only to the extent that liens foreclosed against properties involved in the special assessment districts are insufficient to retire outstanding bonds. G.O. Tax Increment Bonds Tax Increment Bonds will be repaid from incremental tax increases on the property within certain development districts and are backed by the full faith and credit of the City. -36- Note 5: Lona-Term Debt fcontinuedl Refundina Tax Increment Bonds On January 13, 1992, the City issued $4,270,000 in General Obligation Tax Increment Refunding Bonds, Series 1992A with a net interest rate of 5.329°s. The proceeds of the 1992 bond issue will be used to advance refund $4,180,000 of the City's $5,250,000 General Obligation Tax Increment Bonds, Series 1985A, callable on February 1, 1996 and with a net interest rate of 8.054%. The proceeds of $4,242,551, together with other City funds in the amount of $250, (after payment of $45,137 in bond issue costs) were used to purchase State and Local Government Securities (SLG's). Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of remaining maturities of the refunded bonds at the call date and for the interest on the refunding bonds through the call date. The City is responsible for principal and interest payments on the refunded bonds through the call date. The principal balances of both the refunded and refunding bonds are reported in the General Long-Term Debt Account Group until the call date of the refunded bonds, at which time the refunded bonds will be considered defeased and the related liability will be removed from the General Long-Term Debt Account Group. The City advance refunded the 1985 General Obligation Tax Increment Bonds to reduce its debt service payments by $430,748 and to obtain an economic gain (the difference between the present values of the debt service payments on the old and the new debt) of $295,046. Long-term debt maturities (including interest of $8,641,436) are as foliows: General Obligation Bonds G.O. State Special G.O. Tax Certificates Aid Street Assessment Increment of Indebtedness Bonds Bonds Bonds Total 1993 $749,980 $306,180 $127,158 $1,423,468 $2,606,786 1994 172,400 309,071 111,912 1,439,570 2,032,953 1995 306,325 92,131 1,461,130 1,859,586 1996 307,872 53,550 1,501,995 1,863,417 1997 308,588 41,100 1,917,523 2,267,211 1998 on 2,799,346 14,447,137 17,246,483 $922,380 $4,337,382 $425,851 $22,190,823 $27,876,436 -37- Note 5: Long-Term Debt (continued) Long-term debt obligations outstanding at year-end are summarized as foilows: Bond Payment Issue Maturity Authorized Rates Dates Date Date And Issued Retired Outstandinq General Obligation Issues 1991 Certificates of Indebtedness 8.0 12-31 01-01-91 12-31-93 $700,000 $475,000 $225,000 1992 Certificates of Indebtedness 8.0 12-31 01-01-92 12-31-94 480,000 160,000 320,000 1980 Park Improvement Bonds 7.5-7.6 2-01 8-01 09-01-80 02-01-93 1,500,000 1,190,000 310,000 Total $2_680 $1_825_000 $855_000 G.O. State Aid Street Bonds G.O. State-Aid Street Bonds 4.7-6.65 4-01 10-01 09-01-91 04-01-06 $3,000,000 $115,000 $2,885,000 Total $3,000,000 $115,000 $2,885,000 Special Assessment Bonds 1987 Refunding Bonds 4.7-5.5 2-01 8-01 04-01-87 02-01-97 $1,200,000 $815,000 $385,000 Total $1,200,000 $815,000 $385,000 G.O. Tax Increment Bonds 1985 G.O. Tax Increment Bonds 6.75-8.1 2-01 8-01 12-01-85 02-01-03 $5,250,000 $210,000 $5,040,000 1991 G.O. Tax Increment Bonds 4.7-6.0 2-01 8-01 03-01-91 02-01-04 6,050,000 250,000 5,800,000 Total $13,700,000 $2,090,000 $11,610,000 Refunding Tax Increment Bonds of 1992 1992 G.O. Tax Incr Bonds 4.5-5.6 2-01 8-01 02-01-92 02-01-03 $4,270,000 $4,270,000 Total $4,270,000 $0 $4,270,000 -38- I Note 6: Segment Information as of and for the Year Ended December 31, 1992 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 $2,664,667 $284,923 $795,157 $104,261 $896,857 $1,920,796 $494,456 $7,161,117 Depreciation Expense 28,764 25,435 335,605 233,447 194,879 818,130 Operating Income (Loss) 134,327 67,600 (661,191) 328 (98,995) 12,563 287,029 (258,339) Operating Transfers In 334,727 334,727 Operating Transfers (Out) (65,000) (65,000) Net Income (Loss) 53,885 15,233 (335,605) 5,120 215,616 234,670 301,059 489,978 Current Capital Contributions 143,392 143,392 Property, Plant Equipment: Additions 4,253 16,401 151,167 188,958 935,398 64,701 1,360,878 Deletions 10 1,535 29,425 31,330 62,300 Net Working Capital 204,819 31,639 (4,263) 77,650 1,203,077 3,292,412 430,364 5,235,698 Total Assets 653,006 1,782,314 10,675,538 94,146 13,378,134 8,844,790 504,761 35,932,689 Bonds and Other Long-Term Liabilities Payable from Operating Revenues 179,944 1,080,000 1,259,944 Total Equity $364,221 $696,493 $10,566,617 $77,650 $13,336,542 $8,745,473 $495,065 $34,282,061 i i Note 7: Contributed Capital Enter rise funds hav r 'v p e ecei ed contributed capital from several sources. The fixed assets acquired in this fashion have been depreciated along with other fund assets. For the Golf Course and Public Utilities funds, the contributions under Fund Equity on the balance sheet have not been reduced for the depreciation. However, for the Earle Brown Heritage Center Fund, contributions under fund equity on the balance sheet have been reduced for deprectiation. During the year contributions changed by the following amounts: E. Brown Golf Heritage Water Sanitary Course Center Utility Sewer SOURCES AND USES Capital Improvements Fund $143,392 Depreciation charged to contributions (335,605) II Total Change 0 (192,213) 0 0 Contributi n o s, January 1, 1992 $692,206 10,758,811 $4,997,510 $5,618,576 Contributions, December 31, 1992 $692,206 $10,566,598 $4,997,510 $5,618,576 I -40- I NOTE 8: PENSION PLANS: PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) City employees participate in the pension plans administered by the Public Employees Retirement Association (PERA). In accordance with Government Accounting Standards Board Statement No. 5, the PERA plans are classified as a defined benefit multiple employer cost sharing plans. Disclosures relating to this plan are as follows: A. Plan Description 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 Fund (PEPFF) which are cost sharing multiple employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. Al1 police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1992, was $3,858,906 and $1,737,067 respectively; the City's total payroll was $6,384,416. 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 of credited service. The defined retirement benefits are based on member's average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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 member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, 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. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5 percent for each year of service. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a 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 will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their -41- NOTE 8: PENSION PLANS (continued) A. Plan Descri�tion (continued) 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. B. Contributions Recruired and Contributions Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a"required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutorv Rates Reauired E�loyee �lover Rates Public Employees Retirement Fund: Basic Plan and Coordinated Plan 4.41% 4.74% 9.95% Police Fire Fund 8.00% 12.00% 18.60% Total contributions made by the City during fiscal year 1992 were: Percentaae of Contribution Covered Pavroll Emplovees Emplo`ter Emplovees Employer Public Employees Retirement Fund: i, Basic Plan 16,182 21,097 8.23% 10.73% Coordinated Plan 155,542 163,181 4.23% 4.48% Police Fire Fund 138,781 208,172 8.00% 12.00% TOTALS $310,505 $392,450 The City's contribution for the year ended June 30, 1992, to the Public Employees Retirement Fund, represented approximately .17 percent of total contributions required of all participating entities. For Public Employees Police and Fire Fund, contributions for the year ended June 30, 1992, represented .7 percent of total contributions required of all participating entities. -42- NOTE 8: PENSION PLANS (continued) C. Fundinct Status and Proqress Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1992, are shown below (in millions): PERF PEPFF Total pension benefit obligation $4,868 Net assets available for benefits, at cost (market value for PERF 4,068; PEPFF 1,013) $3,933 964 Unfunded (assets in excess of) pension benefit obli ation 935 142 �J The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1992. Net assets available to pay pension benefits were valued as of June 30, 1992. Changes in Benefit Provisions Effective for June 30, 1992, valuation, legislative activity since the last actuarial valuation resulted in some minor changes in benefit provision for the two funds. These changes did not have a significant impact on the PERF or the PEPFF. D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1992. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Partv Investments As of June 30, 1992 and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. -43- Note 9: Pension Plan Brooklvn Center Fire De�artment Relief Association A. Plan Description The City contributes to the Brooklyn Center Fire Department Relief Association ("Association"). In accordance with Government Accounting Standards Board Statement No. 5, it is classified as a defined benefit single employer public employee retirement system. Volunteer fire fighters of the City are members of the Association and its pension plan. The plan's baseline benefit is $450 per month after 20 years of service and attaining the age 50. There are additional benefits for service through 30 years with a maximum of $675 per month. Vesting begins with 10 years of service and benefits are pro-rated for members who have between 10 and 20 years of service. Members may choose to take a lump sum settlement instead of the pension, equal to $3,000 times the number of years of service, with a maximum of 30 years. Spouse's, children's and funeral benefits are also provided. These benefit provisions and all other requirements are consistent with enabling state statutes. The City levies property taxes at the direction of and for the benefit of the association plan and passes through state aids allocated to the plan, all in accordance with enabling state statutes. B. Fundina Status and Proaress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected benefit increases, estimated to be payable in the future as a result of service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the funding status of the association plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among plans. It is independent of the actuarial funding method used to determine contributions to the plan, discussed in "C" below. The pension benefit obligation was determined as part of an actuarial valuation at December 31, 1992. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future assets of 5 percent per year compounded annually, and (b) no post retirement benefit increases. An actuarial update to the pension obligation is performed annually. On December 31, 1992, the unfunded pension benefit obligation was as follows: i -44- Note 9: Pension Plan (continued) B: Fundina Status and Proaress (continuedl Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,385,958 Current Employees Employer-financed vested 1,012,739 Employer-financed non-vested 264,222 Total ension benefit obli ation 2,662,919 P 9 Net assets available for benefits (at cost, market equals $2,690,412) 2,729.341 Assets in excess of ension P benefit obligation (66,422) I No changes in actuarial assumption for benefit provisions that would significantly affect the valuation of the pension benetit obligation occurred during 1992. C. Contributions Reauired and Contributions Made Financial requirements of the association plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The net assets available for benefits exceeded the actuarial accrued liabilit as of December Y 31, 1992. Contributions at the level specified by the last full actuarial study will continue to be made until a new study revises the contribution level. The minimum tax levy obligation is the financial requirement for the year less anticipated state aids. The funding strategy for normal cost should provide sufficient resources to pay lan benefits on a timel basis. P Y Total contributions to the plan in 1992 amounted to $89,900, of which $20, 790 was levied by the City of Brooklyn Center and $69,110 was from the State of Minnesota. The contributed amounts were actuariall Y determined as described above and were based on an actuarial valuation as of January 1, 1991. The contributions represent funding for normal cost of $63,946 and the amortization of the unfunded actuarial accrued liability of $19,844. Significant actuarial assumptions used to compute pension contribution requirements are substantially the same as those used to determine the standardized measure of the pension obligation. -45- Note 9: Pension Plan (continued) C. Contributions Reauired and Contributions Made (continued) The computation of the pension contribution requirements for 1992 was based on the same actuarial assumptions, benefit provision, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years. D. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information may be found in the Association's annual financial report for the year ended December 31, 1992. Three year trend information for the Association is as follows: 1992 1991 1990 Available assets as a percentage of benefit obligation 103% 99% 94% I, Unfunded pension benefit obligation as a percentage of covered payroll *not *not *not applicable applicable applicable City's contribution** as a percentage of covered payroll *not *not *not applicable applicable applicable *The Brooklyn Center Fire Department is a volunteer organization; thus, no covered payroll exists. **The City's contribution was made in accordance with actuarially determined requirements. E. Related Party Investments As of De cember 30, 1992, the Association held no securities issued by the City or other related parties. -46- Note 10: Individual Fund Disclosures_ Deficit fund ba],ances exist in the followinq funds: Special Revenue Funds: Earle Brown Tax Increment Financing District: Unreserved deficit fund balance $2,271,328 This deficit is being funded through internal borrowing, which will be repaid from future surplus tax increments. Capital Project Funds: Special Assessment Construction: Unreserved deficit fund balance $1,164,780 This deficit is being funded through internal borrowin Bonds ma be g Y sold in the future if the balances of special assessments receivable becomes large enough to justify an issue. Note 11: Inter-fund Receivables and Pavables Individual inter-fund receivable and payable balances at December 31, 1992, were as follows: Due From/To Other Funds: Receivable fund Payable fund Amount Economic Development Community Development Authority Block Grant $206.389 I $206,389 Inter-fund Loans From/To Other Funds: Receivable fund Pavable fund Amount, General Fund E. Brown T.I.F. 105,074 Municipal State Aid for Construction E. Brown T.I.F. 593,069 Capital Improvements Liquor Fund 199,201 Capital Improvements Golf Course 1,080,000 $1,977,344 Inter-fund Loan Terms: The loans payable by the Earle Brown Tax Increment Financing District are interest free and have no set repayment schedule. The loan payable by the Liquor Fund is paying interest at the rate of 8.5% and is repaying the loan principal over a period extending through the year 2000. The loan payable by the Golf Course Fund is paying interest at the t rate of 5% and is repaying the loan principal over a period extending through the year 2008. -47- I Note 12: Continaencies There are several lawsuits pending in which the City is involved. I I City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. Note 13: Deferred Comnensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City is reporting the activity of this plan as an agency fund and carries its investment at market value. Note 14: Post-Emblovment Health Care Benefits In addition to the pension benefits described in Note 8, the City provides certain health care insurance benefits for city employees who retire before age 65. Substantially all of the City's full time employees may be eligible for those benefits from the time they retire with a full annuity from PERA (Note 9A), until they reach age 65 or i become eligible for medicare. Four employees currently meet this requirement. This benefit was initiated on April 1, 1986 and will expire on December 31, 1995 unless it is re-enacted by the City Council The cost of retiree health care premiums for the years ended December 31, 1992 and 1991 was $8,199 and $6,706, respectively. In addition, the expenditures in 1992 were reduced by $5,779 and increased by 12,972 in 1991 to account for the change in the liability for the estimated cost of employees who will be eligible to enter the program on or before December 31, 1995. -48- I e Note 15: Lease The City leases space for the operation of one of its three municipal liquor stores, under a five-year lease which expires in 1994. Rental expense under the lease agreement for the years ended December 31, 1992 and 1991 was $36,031 and $34,747, respectively. Future minimum rental payments under the lease agreement for 1993 and 1994 are $28,160 and $11,733, respectively. -49- Cit of Brookl n Center Minnesota Y Y GENERAL FUND The City of Brooklyn Center Home 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, rents, 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. t This Fund utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. -50- �I City of Brooklyn Center A-1 General Fund BALANCE SHEET r December 31, 1992 1992 1991 ASSETS t Cash and investments $5,Q82,804 $5,321,044 Temporary improvement notes 856,200 914,825 Accounts receivable 74,079 42,604 Taxes receivable 319,112 189,647 Due from other governments 9,561 15,284 Interfund loan-E. Brown T.I.F. 105,074 105,074 TOTAL ASSETS $6,446,830 $6,588,478 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $277,406 $510,289 Accrued safaries payable 111,371 286,020 Accrued vacation and sick pay 528,290 520,012 Deferred revenue 489,111 163,582 Total Liabilities 1,406,178 1,479,903 Fund Balance Reserved for: Interfund loans 105,074 105,074 Unreserved fund balance Designated: Working capital 4,899,499 4,656,444 Appropriated to next budget 36,079 347,057 Total Fund Balance 5,040,652 5,108,575 TOTAL LIABILITIES AND FUND BALANCE 6 446 830 6 588 478 -51- City of Brooklyn Center A-2 General Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 31, 1992 I 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual Revenues Property taxes $4,689,933 54,291,322 ($398,611) 54,274,089 1 Licenses and permits 294,836 332,186 37,350 311,751 Intergovernmental 2,955,970 3,133,495 177,525 2,926,570 Charges for services 1,012,980 794,876 (218,104) 881,213 Court fines 210,000 148,701 (61,299) 202,090 Investment earnings 350,000 262,347 (87,653) 323,106 Miscellaneous 33,741 39,424 5,683 37,694 Total Revenues 9,547,460 _9,002,351 (545,109) _8,956,513 Exnenditures General government 1,874,155 1,797,895 (76,260) 1,591,108 Public safety 4,127,528 3,938,920 (188,608) 3,950,862 Public works 1,794,743 1,594,190 (200,553) 1,827,052 Community services 119,440 114,579 (4,861) 104,706 Parks and recreation 2,006,373 1,783,811 (222,562) 1,870,385 Economic development 182,000 187,606 5,606 177,179 Non-departmental 378,834 273,273 (105,561) 414,149 Total Exnenditures 10,483,073 _9,690,274 (792,799) _9,935,441 Deficiencv of Revenues Over ExDenditures (935,613) (687,923) 247,690 (978,928) Other Financina Sources Operating transfers in 140,000 140,000 0 177,477 Sale of cert. of indebtedness 480 000 480,000 0 700,000 Total Other FinancinQ Sources 620,000 620,000 0 877,477 Deficiencv of Revenues and Other Financina Sources Over Exoenditures (315,613? (67,923) 247,690 (101,451) Fund Balance January 1 5,108,575 5,108,575 0 5,210,026 I, Fund Balance December 31 $4,792,962 $5,040,652 $247,690 55,108,575 1 1 -52- S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 1992 Actual Over or Under(-) 1991 B Actual Budpet Actual udaet Ad Valorem Taxes Pro ert taxes 4 284 933 3 893 784 $391,149 $3,897,499 P Y Penalties and int r 2 1 039 18 961 1 022 e est 0 000 Lodging tax 385,000 394,960 9,960 373,007 Special assessments 1,539 1,539 2,561 Total Ad Valorem Taxes 4 4-291-322 (398,611) __4,274,089 Licenses and Permits Liquor and beer 126,000 110,036 (15,964) 138,348 Building permits 80,Q00 114,482 34,482 82,079 Mechanical permits 18,000 27,861 9,861 19,445 Sewer and water permits 750 3,041 2,291 996 Plumbing permits 7,000 12,549 5,549 6,650 Electrical permits 34 34 39 Garbage licenses 1,945 2,156 211 1,985 Taxicab licenses 600 400 (200) 563 Mechanicallicenses 3,000 3,483 483 3,756 Food licenses 19,501 18,321 (1,180) 23,019 Service station licenses 1,795 1,365 (430) 1,910 Vehicle dealer licenses 900 900 0 900 Bowling licenses 700 700 0 808 Cigarette licenses 375 1,115 740 1,273 Swimming pool licenses 2,535 2,415 (120) 2,942 Sign permits 2,000 2,003 3 1,842 Rental dwelling permits 16,020 18,084 2,064 12,999 Lodging establishments 935 138 (797) 1,105 Amusement licenses 5,630 5,583 (47) 5,967 Dog licenses 5,650 5,724 74 3,426 Miscellaneous business license 1,500 1,796 296 1,699 Total Licenses and Permits 294,836 332,186 37,350 311,751 -53- S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND �THER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 1992 Actual Over or Under(-) 1991 1 Budyet Actual Budqet Actual Interaovernmental Federai grants: Miscellaneous grants $6,000 $7,560 $1,560 $7,330 Total Federal Grants 6,000 7,560 1,560 7,330 i State grants: Local government aid 1,647,162 1,787,378 140,216 1,679,415 Homestead credit aid 1,033,058 1,033,058 0 953,469 Police pension aid 177,000 198,632 21,632 176,958 Fireman pension aid 70,000 69,110 (890) 70,248 Police training 15,000 6,922 (8,078) 14,402 Miscellaneous grants 7,750 30,835 23,085 24,748 Total State Grants 2,949,970 3,125,935 175,965 2,919,240 Total Interaovernmental Rev. 2,955,970 3,133,495 177,525 2,926,570 Charaes for Services Engineering and clerical fees 0 0 0 103,789 General government charges 27,210 34,934 7,724 25,383 I Public safety charges 17,000 25,669 8,669 20,540 Recreation fees 968,770 734,273 (234,497) 731,501 Total Charaes for Services 1,012,980 794,876 (218,104) 881,213 Court Fines 1 Fines 210,000 148,701 (61,299) 202,090 Total Court Fines 210,000 (61-299) 202,090 Miscellaneous Interest on investments 350,000 262,347 (87,653) 323,106 Forfeited drug money 15,241 21,297 6,056 19,073 Other 18,500 18,127 (373) 18,621 I Total Miscellaneous 383,741 301,771 81,970 360,800 Total Revenues _$9,547,460 _$9,002,351 _$8,956,513 -54- S-1 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 1992 Actual Over or Under(-) 1991 Budyet Actual Budqet Actual Other Financinq Sources Operating transfers in: Liquor Fund $65,000 $65,000 $0 $130,000 M.S.A. Fund 75,000 75,000 0 29,582 Storm Drainage Fund 0 0 0 17,895 Sale of cert. of indebtedness 480,000 480,000 0 700,000 Total Other Financina Sources 620,000 620,000 0 877,477 Total Revenues and Other Sources $10,167,460 $9,622,351 ($545,109) $9,833,990 -55- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1992 next page) 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual General Government Mayor and Council: Personal services 530,211 $30,316 $105 529,286 Services and other charges 57,379 48,160 Total Mavor and Council 87,590 78,476 (9,114) 75,795 Charter Commission: Services and other charges 3,200 3,113 (87) 1,177 Total Charter Commission 3,200 Administrative Office: Personal services 340,745 332,323 (8,422) 318,837 Services and other charges 76,200 58,360 (17,840) 20,585 Capital outlay 0 0 0 330 Charged to other funds (77,266) (77,266) 0 (74,476) Total Administrative Office 339,679 313,417 (26,262) 265,276 Elections and Voter Registration: Personal services 46,198 36,304 (9,894) 13,917 Supplies 1,900 1,560 (340) 0 Services and other charges 6,870 6,317 (553) 3,146 Total Elections 54,968 44,181 (10,787) 17,063 Assessor's Office: Personal services 191,868 174,040 (17,828) 173,010 Supplies 3,650 3,496 (154) 1,221 Services and other charges 6,060 4,488 (1,572) 4,096 Capital outlay 2,500 1,741 (759) 0 Total Assessor°s Office 204,078 183,765 (20,313) 178,327 Finance: Personal services 405,706 404,299 (1,407) 376,181 Supplies 2,450 1,633 (817) 1,921 Services and other charges 1,750 1,364 (386) 1,450 Capital outlay 2,300 2,100 (200) 1,094 Charged to other funds (211,333) (211,333) 0 (203,810) Total Finance 200,873 198,063 (2,810) 176,836 -56- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1992 next page) 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual General Government (continued) Independent Audit: Services and other charges 16,450 16,450 0 15,400 Total IndeDendent Audit 16,450 16,450 0 15,400 t Legal: Services and other charges $209,500 $202,220 (57,280) 5200,009 Total LeQal 209,500 202,220 (7,280) 200,009 Government Buildings: Personal services 238,269 246,776 8,507 205,344 Supplies 22,718 29,617 6,899 23,903 Services and other charges 160,600 160,108 (492) 156,101 Capital outlay 32,077 29,169 (2,908) 53,195 Total Government Buildinas 453,664 ___438,543 Data Processing: Supplies 8,000 5,353 (2,647) 7,438 Services and other charges 155,164 164,400 9,236 142,634 Capital outlay 140,989 122,787 (18,202) 72,610 I Total Data Processina 304,153 292,540 (11,613) Total General Government $1,874,155 $1,797,895 ($76,260) 51,591,108 I -57- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1992 next page) 1992 Actual Over or Under(-) 1991 Budaet Actual BudQet Actual Public Safetv Police Protection: Personal services $2,844,809 52,779,280 (565,529) $2,567,997 Supplies 40,147 40,636 489 38,057 Services and other charges 282,632 233,121 (49,511) 255,216 Capital outlay 91,855 95,740 3,885 76,417 Total Police Protection _3,259,443 3,148,777 (110,666) _2,937,687 Fire Protection: Personal services 297,534 286,026 (11,508) 249,201 Supplies 23,400 22,565 (835) 22,005 Services and other charges 52,480 46,763 (5,717) 24,748 Capital outlay 85,630 62,609 (23,021) 329,838 Total Fire Protection 459,044 417,963 (41,081) 625,792 Protective Inspection: Personal services 311,963 305,335 (6,628) 286,452 Supplies 1,700 1,157 (543) 3,616 Services and other charges 4,475 2,136 (2,339) 21,342 Capital outlay Total Protective Insnection 318,523 308,628 (9,895) 311,471 Emergency Preparedness: Personal services 39,294 23,643 (15,651) 47,742 Supplies 2,392 2,135 (257) 687 Services and other charges 9,152 3,472 (5,680) 5,354 Capital outlay 0 0 0 800 Total Emeraencv Preparedness 29,250 (21,588) Animal Control: Personal services 16,955 11,774 (5,181) 11,711 I i Supplies 500 322 (178) 1,949 Services and other charges 6,875 9,848 2,973 7,669 Capital outlay 15,350 12,358 (2,992) 0 Total Animal Control 39,680 34,302 (5,378) 21,329 Total Public Safetv 54,127,528 53,938,920 ($188,608) 53,950,862 -58- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1992 next page) 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual Public Works Engineering Department: Personal services $459,298 $423,429 ($35,869) $427,446 Supplies 4,700 2,928 (1,772) 3,594 Services and other charges 8,865 6,008 (2,857) 4,872 Capital outlay 1,200 1,077 (123) 3,015 Charged to other funds (213,501) (214,247) (746) (45,864) Total Encrineerina DeDt. 260,562 219,195 (41,367) 393,063 Street Department: Personal services 563,638 535,359 {28,279) 522,124 Supplies 159,800 125,361 (34,439) 128,765 Services and other charges 159,020 123,827 (35,193) 156,757 Capital outlay 90,248 61,856 (28,3y2) 113,530 Charged to other funds (100,000) (100,000) 0 (91,525) Total Street DeDt. 872,706 746,403 (126,303) 829,651 Maintenance Shop: Personal services 169,350 169,053 (297) 149,926 Supplies 212,925 216,867 3,942 219,502 Services and other charges 94,950 80,379 (14,571) 79,558 Capital outlay 0 0 4,781 Total Maintenance Shoo 477,225 466,299 (10,926) 453,767 Traffic Signals and Lights: Services and other charges 181,200 159,243 (21,957) 147,423 Total Traffic 159,243 (21,957) 147,423 Weed Control: Services and other charaes 3,050 0 3,148 Total Weed Control 3,050 3,050 0 3,148 Total Public Works $1,794,743 $1,594,190 ($200,553) $1,827,052 r -59- Cit of Brookl n Center S-2 Y Y General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1992 next page) 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual Communitv Services Health Inspection: Service and other charges $88,930 $84,069 ($4,861) $75,215 Total Health Insoection 88,930 84,069 (4,861) 75,215 Social Services: Service and other charges 30,510 0_ Total Social Services 30,510 30,510 0 29,491 Total Communitv Services 5119,440 5114,579 ($4,861) $104,706 Parks and Recreation Administration: Personal services 283,963 276,802 (7,161) 256,245 Supplies 8,300 11,741 3,441 11,269 Services and other charges 27,000 23,170 (3,830) 23,581 Capital outlay 0 0 0 17,697 Total Administration 319,263 311,713 (7,550) 308,792 Adult Programs: Personal services 64,283 83,660 19,377 83,209 Supplies 60,595 45,490 (15,105) 47,320 Services and other charges 190,591 146,544 (44,047) 150,986 Total Adult Proarams 315,469 275,694 (39,775} 281,515 r Teen Programs: Personal services 7,837 5,525 (2,312) 5,858 Supplies 641 491 (150) 194 L Services and other charges 4,770 6,862 2,092 5,018 Capital outlay 600 0 (600) 1,774 Total Teen Proarams 13,848 12,878 (970) 12,844 Children's Programs: Personal services 61,603 62,499 896 52,376 Supplies 11,313 10,563 (750) 9,560 Services and other charges 11,805 9,770 (2,035) 12,376 Capital outlay 197 0 (197) Total Children's Proarams 84,918 82,832 (2,086) 74,312 -60- S-2 City of Brooklyn Center (Continued from General Fund prior page� SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL For the Year Ended December 31, 1992 1992 Actual Over or Under(-) 1991 Budaet Actual Budaet Actual Parks and Recreation (continued) General Programs: Personal services $47,932 $46,580 ($1,352) 539,105 Supplies 2,281 8,901 6,620 2,235 Services and other charges 44,268 33,818 (10,450) 40,265 Total General Proarams 94,481 (5,182} -g1,605 Community Center: Personal services 338,773 282,981 (55,792) 285,618 Supplies 65,541 66,550 1,009 38,114 Services and other charges 167,110 147,331 (19,779) 135,142 Capital outlay 12,736 10,297 (2,439) 18,405 Total Communitv Center 584,160 507,159 (77,001) 477,279 Park Maintenance: Personal services 347,874 322,679 (25,195) 338,459 Supplies 77,000 56,332 (20,668) 67,485 Services and other charges 127,350 95,583 (31,767) 113,427 Capital outlay 42,010 29,642 (12,368) 126,192 Charged to other funds 0 0 0 (11,525) Total Park Maintenance 504,236 (89,998) 634,038 Total Parks and Recreation $2,006,373 51,783,811 (5222,562) $1,870,385 Economic Develonment Convention Bureau: Services and other charges 182,000 187,606 5,606 177,179 Total Economic Develo�ment $182,000 $187,606 55,606 $177,179 Nondenartmental Expenditures not Charged to Departments: Personal services 146 3,099 2,953 181,410 Supplies 25,000 19,595 (5,405) 19,876 Services and other charges 331,488 230,542 (100,946) 210,720 Capital outlay 22,200 20,037 (2,163) 2,143 Total Nondeoartmental $378 834 $273,273 ($105,561) 5414,149 Total Expenditures 510,483,073 $9,690,274 ($792,799) $9,935,441 -61- City of Brooklyn Center, Minnesota SPECIAL REVENUE FUNDS The S ecial Revenue Funds are established to account for revenues P derived from taxes and/or other specific 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 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. Earle Brown Farm Tax Increment Financina District. 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 issued for that purpose. Diseased Tree Removal Fund: This Fund was established to account for the collection of resources and expenditure of these resources for diseased tree control. Costs are reimbursed by private property owners, or the City, depending upon where the tree was located. Communitv Develobment 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. -62- City of Brooklyn Center B-1 Special Revenue Funds COMBINING BALANCE SHEET December 31, 1992 Earle Brown Tax Incr. Diseased Community Financing Tree Development Totals District Removal Block Grant 1992 1991 ASSETS Cash and investments $8,019 $29,284 $37,303 $62,481 Accounts receivable 719 719 2,020 Deferred special assessments 31,639 31,639 33,963 Delinquent special assessments 1,767 1,767 1,440 Due from other governments $206,389 206,389 66,922 TOTAL ASSETS $8,019 $63,409 $206,389 $277,817 $166,826 a, LIABILITIES AND FUND BALANCES (DEFICITS� Liabilities Accounts payable $6,533 $6,533 $6,863 Intergovernmental payable 49,671 49,671 0 Due to other funds $206,389 206,389 66,922 Temporary improvement notes 1,525,000 1,525,000 1,779,215 Deferred revenue $33,407 33,407 35,403 Advances from other funds 698,143 698,143 698,143 Total Liabilities 2,279,347 33,407 206,389 2,519,143 2,586,546 Fund Balances (Deficitsl Unreserved (2,271,328) 30,002 0 (2,241,326) (2,419,720) Total Fund Balances (Deficitsl (2,271,328) 30,002 0 (2,241,326) (2,419,720) TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $8,019 $63,409 $206,389 $277,817 $166,826 i City of Brookiyn Center B Special Revenue Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 Earle Brown Farm Tax Increment District Diseased Tree Removal Over Over Under(-) Under(-) Budget Actual Budget BudAet Actual Budqet Revenues Propertytaues $1,308,500 $1,379,425 $70,925 Special assessments $15,000 $17,650 $2,650 Total ProoertvTaxes 1,308,500 1,379,425 70,925 15,000 17,650 2,650 Intergovernmental: Federal grants Total Intergovernmental Charges for services: Fees 49,500 18,770 (30,730) Total Char9es for Services 49,500 18,770 (30,730) Miscellaneous Investmenteamings 500 1,205 705 Land Sale 336,327 $336,327 Total Miscellaneous 336,327 $336,327 500 1,205 705 Total Revenues 1,308,500 1,715,752 407,252 65,000 37,625 (27,375) II Exoenditures Services and other charges 53,032 25,681 (27,351) 65,000 29,122 (35,878) Capital outlay 146,370 137,590 (8,780) Interest 160,000 119,511 (40,489) I Total Ex�enditures 359,402 282,782 (76,620) 65,000 29,122 (35,878) Excess of Revenues Over Exoenditures 949,098 1,432,970 483,872 0 8,503 8,503 Other Financina Sources or Uses(-) Operatingtransfersout (1,114,774) (1,263,079) (148,305) Sale of Bonds Total Other Financina Sources or Uses(-1 (1,114,774) (1,263,079) (148,305) Excess or Deficiencv of Revenues and Other Sources Over F�coenditures and Other Uses (165,676) 169,891 335,567 0 8,503 8,503 Fund Balances (Deficitsl Januarv t (2,441,219) (2,441,219) 0 21,499 21,499 0 Fund Balances (Deficits) December 31 ($2,606,895) ($2,271,328) $335,567 $21,499 $30,002 $8,503 -64- City of Brooklyn Center B Special Revenue Funds (Continued from prior page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1992 Community Development Block Grant Fund Totals Over Over Under(-) 1992 1992 .Under(-) 1991 Buds�et Actual Budget Budget Actual Budget Actuai Revenues Propertytaxes $1,308,500 $1,379,425 $70,925 $1,377,594 Special assessments 15,000 17,650 2,650 16,730 Total ProaertvTaxes 1,323,500 1,397,075 73,575 1,394,324 Intergovernmental: Federal grants $215,761 $251,747 $35,986 215,761 251,747 35,986 180,440 Total interaovernmental 215,761 251,747 35,986 215,761 251,747 35,986 180,440 Charges for services: Fees 49,500 18,770 (30,730) 49,744 Total Charqes for Services 49,500 18,770 (30,730) 49,744 Miscellaneous: Investmentearnings 1,205 1,205 346 Land Sale 336,327 336,327 Total Miscellaneous 337,532 337,532 346 Total Revenues 215,761 251,747 35,986 1,588,761 2,005,124 416,363 1,624,854 Exoenditures Services and other charges 118,032 54,803 (63,229) 138,884 Capital outlay 146,370 137,590 (8,780) 380,729 Interest 160,000 119,511 (40,489) 229,446 Total Expenditures 424,402 311,904 (112,498) 749,059 Excess of Revenues Over Exnenditures 215,761 251,747 35,986 1,164,359 1,693,220 528,861 875,795 Other Financina Sources or Uses(-1 Operatingtransfersout (215,761) (251,74� (35,986) (1,330,535) (1,514,826) (184,291) (1,743,29� Sale of Bonds 0 0 0 5,996,855 Totai Other Financina Sources or Uses(-1 _(215,761) (251,74� (35,986) (1-330,535) (1,514,826) (184,291) 4,253,558 F�ccess or Deficiencv of Revenues and Other Sources Over Ex�enditures and Other Uses 0 0 0 (166,176) 178,394 344,570 5,129,353 Fund Balances (Deficiis) Januarv 1 0 0 0 (2,419,720) (2,419,720) 0 (7,549,073) Fund Balances (Deficits) December 31� $0 $0 $0 ($2�585�896) ($2,241-326) $344,570 ($2�419,720) -65- City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the payment (from taxes and other resources) of interest and principal on long- term general obligation debt. 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: Certificates of Indebtedness Debt Service Fund: This Fund accounts for the property taxes raised to pay the principal and interest on certificates of indebtedness sold in 1991 to finance the purchase of capital equipment in the General Fund. General Obliaation State Aid Street Bonds Debt Service: This Fund accounts for the accumulation of state aid allotments, for payment of principal and interest on bonds issued in 1991 to finance a comprehensive improvement and upgrading 69th Avenue North as a state aid route. Park Bonds of 1980 Debt Service Fund: This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds author�.zed by the electorate in 1980 to finance the improvement and equipping of parks, park lands and related public recreational facilities. These improvements include neighborhood parks, Central Park, Palmer Nature Center, Shingle C�eek Trailway and the Arboretum. General Obliaation Tax Increment Bonds of 1983 Fund: This Fund accounts for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1983 to finance purchase of land and installation of utilities for housing for the elderly. General Obliaation Tax Increment Bonds of 1985 1991 Funds: These Funds were established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1985 and 1991 to finance the purchase and redevelopment of the historic Earle Brown Farm in Brooklyn Center. Refundina Tax Increment Bonds of 1992: This fund was established to account for the resources that will be used to advance refund the Tax Increment Bonds of 1985. Refundina Bonds of 1987 Fund: This Fund was established to account for the collection of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold during 1987 to refund Improvement Bonds of 1982. -66- City of Brooklyn Center C-1 Debt Service Funds COMBINING BALANCE SHEET December 31, 1992 Refunding Tax Tax Tax Park Increment Increment Increment Refunding Bonds Bonds Bonds Bonds Bonds Totals of 1980 of 1985 of 1991 of 1992 of 1987 1992 1991 ASSETS Cash and investments $431,332 $453,003 $563,229 $4,186,114 $1,198,637 $6,832,315 $3,070,702 Temporary improvement notes 72,814 76,473 95,081 202,346 446,714 528,567 Taxes receivable 21,019 21,019 55,078 Special assessments receivable: Deferred 586,902 586,902 797,085 Delinquent 16,016 16,016 8,700 rn TOTAL ASSETS $525,165 $529,476 $658,310 $4,186,114 $2,003,901 $7,902,966 $4,460,132 LIABILITIES AND FUND BALANCES Liabilities Deferred revenue $21,019 $602,918 $623,937 $825,254 Total Liabilities 21,019 602,918 623,937 825,254 Fund Balances Reserved 504,146 529,476 658,310 4,186,114 1,400,983 7,279,029 3,634,878 Total Fund Balances 504,146 529,476 658,310 4,186,114 1,400,983 7,279,029 3,634,878 TOTAL LIABILITIES AND FUND BALANCES $525,165 $529,476 $658,310 $4,186,114 $2,003,901 $7,902,966 $4,460,132 �w r �r r� �r r r i■s r r i r� City of Brooklyn Center C=2 Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 1992 Refunding State Tax Tax Tax Tax Certificates Aid Park Increment Increment Increment Increment Refunding of Street Bonds Bonds Bonds Bonds Bonds Bonds Totals Indebtedness Bonds of 1980 of 1983 of 1985 of 1991 of 1992 of 1987 1992 1991 Revenues Property taxes $363,603 $268,547 $632,150 $736,120 Special assessments $266,077 266,077 301,662 Intergovenmental revenue 89,165 68,035 157,200 128,939 Investment earnings 6,232 17,107 $25,984 $10,641 109,242 75,646 244,852 266,896 Total Revenues 459,000 353,689 0 25,984 10,641 109,242 341,723 1,300,279 1,433,617 Expenditures Principal $385,000 $115,000 300,000 585,000 100,000 250,000 145,000 1,880,000 940,000 a, Interest 74,000 192,254 34,810 24,569 400,300 336,200 109,811 23,260 1,195,204 746,401 Fiscal agent fees 400 938 842 784 400 4,350 7,714 3,886 Bond issuance costs 79,217 79,217 Total Expenditures 459,000 307,654 335,748 610,411 501,084 586,600 193,378 168,260 3,162,135 1,690,287 Excess or Deficiencv of Revenues Over Exqenditures 0 (307,654) 17,941 (610,411) (475,100) (575,959) (84,136) 173,463 (1,861,856) (256,670) Other Financinq Sources Proceeds from sale of refunding bonds 4,270,000 4,270,000 0 Operating transfers in 307,654 308,103 620,000 250 1,236,007 1,266,100 'i Total Other Financinq Sources 307,654 308,103 620,000 4,270,250 5,506,007 1,266,100 Excess or Deficiencv of Revenues and Other Sources over Exqenditures 0 0 17,941 (610,411) (166,997) 44,041 4,186,114 173,463 3,644,151 1,009,430 Fund Balances Januarv 1 0 0 486,205 802,309 504,575 614,269 1,227,520 3,634,878 4,588,753 EquityTransfer In (Out) (191,898) 191,898 0 1,963,305 Fund Balances December 31 $0 $0 $504,146 $0 $529,476 $658,310 $4,186,114 $1,400,983 $7,279,029 $3,634,878 City of Brooklyn Center, Minnesota CAPITAL PROJECTS FUNDS The Capital Projects Funds are established to account for all 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: Cabital Improvements 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 acquisitian 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. Municibal 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. Special 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. Housina and Redevelo�ment Fund (H.R.A.): This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment proj ects These proj ects are now done in the E. D. A. Fund and all tax proceeds are transferred to that fund. Economic Development Authoritv Fund: 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 transfers from the C.D.B.G. and H.R.A. funds. -69- City of Brooklyn Center p Capital Projects Funds COMBINING BALANCE SHEET December 31, 1992 Municipal Special Economic Capital State Aid Assessment Development Totals Improvements for Construction Authority Fund Construction Fund Fund 1992 1991 ASSETS Cash and investments $5,253,806 $3,276,396 $278,463 $630,209 $9,438,874 $10,655,557 Temporary improvement notes 814,430 553,099 269,415 1,636,944 1,970,069 Accounts Receivable 1,500 245 1,745 0 Taxes receivable 1,777 9,291 11,068 5,157 Special assessments Deferred 1,095,734 1,095,734 1,330,718 Delinquent 24,422 24,422 22,226 Due from other funds 206,389 206,389 66,922 Due from oth r v e go ernments 939,788 939,788 810,559 Interfund loans: Municipal liquor 199,201 99,201 216,895 Golf course 1,080,000 1,080,000 1,120,000 Earle Brown T.I.F. District 593,069 593,069 593,069 Restricted investments 1,000,000 1,000,000 1,000,000 r TOTALASSETS $7,3�47,437 $5,363,852 $1,400,396 $2,115,549 $16,227,234 $17,791,172 LIABILITIES AND FUND BALANCES IDEFICITS) Liabilities Accounts payable $8,931 $14,081 $30,163 $33,479 $86,654 $215,401 Accrued salaries payable 1,522 1,522 0 Intergovernmental payable 22,880 22,880 0 Temporary improvement notes 1,414,857 1,414,857 1,626,246 Deferred revenue 939,788 1,120,156 9,291 2,069,235 2,168,660 Total Liabilities 8,931 953,869 2,565,176 67,172 3,595,148 4,010,307 Fund Balances (Deficits) i Reserved: Unexpended appropriations 653,308 404,650 1,057,958 1,142,651 Dedicated housing account 1,000,000 1,000,000 1,000,000 Advances to other funds 1,279,201 593,069 1,872,270 1,929,964 Bond proceeds 562,130 562,130 2,062,073 Unreserved 5,405,997 _2,850,134 (1,164,780) 1,048,377 8,139,728 7,646,177 Total Fund BalanceslDeficits) 7,338,506 4,409,983 (1,164,780) 2,048,377 12,632,086 13,780,865 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $7,347,437 $5,363,852 $1,400,396 $2,715,549 $16,227,234 $17,791,172 t -70- City of Brooklyn Center �=2 Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1992 Municipal Special Housing Economic Capital State Aid Assessment and Development Improvements for Construction Redevelop Authority Totals Fund Construction Fund Fund Fund 1992 1991 Revenues Property taxes $128,362 $128,362 $130,022 Speciai assessments $374,442 374,442 344,968 Intergovernmental $700,120 14,497 $80,000 794,617 1,836,213 Investment earnings $437,165 332,166 27,330 125,917 922,578 824,793 Other 435,403 250 16,568 452,221 253,069 Total Revenues 872,568 1,032,536 401,772 142,859 222,485 2,672,220 3,389,065 Expenditures Personal services 64,050 64,050 57,289 Supplies 5,142 296 106 754 6,298 150 Services and other charges 40,258 143,606 495,441 327,658 1,006,963 257,482 Capital outlays 424,845 639,070 1,277,187 186,167 2,507,269 2,419,557 Interest 105,511 105,511 135,294 Total6coenditures 470,245 782,972 1,878,245 558,629 3,690,091 2,869,772 Excess or Deficiencv of Revenues i Over Exoenditures 402,323 249,564 (1,476,473) 142,859 (336,144) (1,017,871) 519,293 Other Financins� Sources or Uses(-) Operating transfers in 1,770,613 394,606 2,165,219 629,454 Operating transfers out (2,153,268) (142,859) (2,296,12� (540,864) Sale of Bonds 0 3,000,000 Total Other Financina Sources or Uses(-1 (2,153,268) 1,770,613 (142,859) 394,606 (130,908) 3,088,490 Excess or Deficiencv of Revenues and Other Financina Sources Over Expenditures and Other Financina Uses 402,323 (1,903,704) 294,140 0 58,462 (1,148,779) 3,607,783 Fund Balance (Deficitsl Januarv 1 6,936,183 6,313,687 (1,458,920) 1,989,915 13,780,865 8,209,777 Equity Transfer In ---_Y_--- 0 1,963,305 Fund Balance (Deficits) December 31 $7,338,506 $4,409,983 ($1,164,780) $0 $2,048,377 $12,632,086 $13,780,865 -71- City of Brooklyn Center S-3 Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnin4 to December 31, 1992 Project Over(-) Under 1992 to Date Expended �e of Pro'� Approp riations Exqenditures Exaenditures Aqprop riations Council Chambers lighting $5,279 $5,279 $5,279 $0 Police reception remodel 3,870 3,144 3,144 726 Air quality study 21,350 5,000 5,000 16,350 Community Center lights 18,784 19,378 19,378 (594) Purchase 4100-51 st Ave. N. 159,397 156,740 156,740 2,657 Replat I-94 property 33,000 3,044 37,144 (4,144) Community Center water slide 217,631 204,029 222,427 (4,796) Community Center code corrections 31,400 29,241 31,605 (205) Civic Center water heater 28,550 30,814 31,048 (2,498) Community Center concession stand 14,391 13,576 14,391 0 Totals $533,652 $470,245 $526,156 $7,496 r City of Brooklyn Center S-4 Municipal State Aid Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnina to December 31, 1992 Project Over(-) Under 1992 to Date Expended Pro'� Approp riation Exqenditures Exqenditures Approq riations 69th Ave professional services $156,000 $26,933 $143,141 $12,859 i 69th Ave right of way acquisition 2,471,392 309,226 2,470,105 1,287 W 69th Ave soil correction 1,022,227 272,195 673,800 348,427 Trail improvement project 107,785 105,100 108,023 (238) Humboldt Square trail improvement 44,298 38,615 44,298 0 Engineer certification training 5,000 1,545 1,545 3,455 TH252 signals 95 95 (95) Sidewalk replacement 13,285 13,496 13,496 (211) Transportation system study 10,000 6,629 6,629 3,371 Neighborhood street study 3,097 3,097 (3,097) 69th Ave landscaping 263,800 6,041 6,041 257,759 Totals $4,093,787 $782,972 $3,470,270 $623,517 City of Brooklyn Center S-5 Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From BeQinnina to December 31. 1992 Project Over(-) Under 1992 to Date Expended I �e of Pro'� Approp riations Exqenditures Exaenditures Apqrop riations West River Road 66th to 73rd $1,585,705 $8,723 $1,553,131 $32,574 69th Ave Reconstruction 2,258,024 1,780,853 2,054,156 203,868 Totals $3,843,729 $1,789,576 $3,607,287 $236,442 i City of Brooklyn Center, Minnesota ENTERPRISE FUNDS The Enterprise Funds were established to aceount for the financing of self supporting activities of the City which render services on a user charge basis to the general public. 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: Municibal Liauor Fund: This Fund accounts for the operations of the City's three municipal 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 operation of 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. The "Inn On The Farm" is a bed and breakfast with eleven rooms available to complement convention activities or be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. Recvclina and Refuse Fund: This fund accounts for the operation of s ection a state mandated recycling program. Expansion into refu e coll will take place only when there is a clear advantage to be achieved by it. Water Utilities Fund: This Fund accounts for the provision of water to customers. Administration, wells, water storage, and distribution are included. Sanitarv 5ewer Fund: This Fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan Waste Control Commission 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. -75- City of Brooklyn Center E-1 Enterprise Funds Continued next page) COMBINING BALANCE SHEET December 31, 1992 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals ASSETS Fund Fund Fund Fund Fund Fund Fund 1992 1991 Current Assets Cash and cash equivalents $16,921 $29,296 $35,446 $73,170 $965,394 $2,760,463 $320,708 $4,201,398 $4,287,897 Accounts receivable net 2,769 68,442 67,861 137,887 34,380 311,339 303,019 Accrued revenue 20,976 105,969 268,575 84,972 480,492 404,598 Assessments receivable: Deferred 88,945 2,861 91,806 105,688 Delinquent 3,839 3,839 2,690 Due from other governments 104,959 104,959 118,117 Inventories 263,136 8,164 12,661 283,961 315,085 Prepaid expenses 30,834 770 116,984 148,588 125,186 Total Current Assets 313,660 37,460 104,658 94,146 1,244,669 3,391,729 440,060 5,626,382 5,662,280 Restricted Assets Temporary cash investments 3,700,000 300,000 4,000,000 4,000,000 Debt retirement investments 0 121,755 Total Restricted Assets 3,700,000 300,000 4,000,000 4,121,755 Fixed Assets Mains and lines 7,714,754 5,563,479 13,278,233 12,857,595 Structures 294,852 303,321 9,507,420 4,136,093 1,907,684 16,149,370 15,486,152 Equipment 148,375 139,496 928,294 192,561 172,635 64,701 1,646,062 1,431,340 Land 107,405 1,391,711 925,000 23,938 3,388 2,451,442 2,451,442 Land improvements 4,228 30,728 2,600 37,556 37,556 Leasehold improvements 27,834 27,834 27,834 582,694 1,865,256 11,360,714 12,069,946 7,647,186 64,701 33,590,497 32,291,919 Less: Aliowance for depreciation 243,348 120,402 789,834 3,636,481 2,494,125 0 7,284,190 6,462,657 Total Fixed Assets 339,346 1,744,854 10,570,880 8,433,465 5,153,061 64,701 26,306,307 25,829,262 TOTALS $653,006 $1,782,314 $10,675,538 $94,146 $13,378,t34 $8,844,790 $504,761 $35,932,689 $35,613,297 r r r� r �r r� r s E-1 (Continued from E. Brown prior page) Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1992 1991 LIABILITIES AND FUND EQUITY Current Liabilities Accountspayabie $68,008 $1,820 $92,149 $16,496 $26,918 $79,137 $9,649 $294,177 $505,275 Accrued salaries payable 4,536 792 7,476 4,318 854 47 18,023 29,952 Intergovernmental payable 19,326 19,326 0 Accrued vacation and sick pay 17,040 3,209 9,296 10,356 39,901 39,485 Temporary improvement note 0 8,000 Current portion of long-term debt 19,257 19,257 62,693 Total Current Liabilities 108,841 5,821 108,921 16,496 41,592 99,317 9,696 390,684 645,405 Lona-Term Liabilities Construction loan 179,944 1,080,000 1,259,944 1,319,201 Total Lona-term Liabilities 179,944 1,080,000 1,259,944 1,319,201 Fund Eau� Contributions 692,206 10,566,598 4,997,510 5,618,576 21,874,890 22,067,103 Retained earnings Reserved: Debt retirement 0 121,755 il I S ec a assessments 92 7 4 2 1 P 8 ,86 95,645 108,378 Plant expansion 3;700,000 300,000 4,000,000 4,000,000 I Unreserved 364,221 4,287 19 77,650 4,546,248 2,824,036 $495,065 8,311,526 7,351,455 Total Retained Earninos 364,221 4,287 19 77,650 8,339,032 3,126,897 495,065 12,407,171 11,581,588 Total Fund Eauitv 364,221 696,493 10,566,617 77,650 13,336,542 8,745,473 495,065 34,282,061 33,648,691 TOTALS $653,006 $1,782,314 $10,675,538 $94,146 $13,378,134 $8,844,790 $504,761 $35,932,689 $35,613,297 City of Brooklyn Center E Enterprise Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 E. Brown Municipal Golf Heritage Recyciing Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Operating Revenues Fund Fund Fund Fund Fund Fund Fund 1992 1991 Sales and user fees $2,664,667 $284,923 $795,157 $104,261 $896,857 $1,920,796 $494,456 $7,161,117 $6,471,067 Cost of sales 2,011,103 28,102 2,039,205 2,053,165 Net Oqeratinq Revenues 653,564 256,821 795,157 104,261 896,857 1,920,796 494,456 5,121,912 4,417,902 i Operatinp Exqenses Personal services 343,673 126,145 604,842 348,313 199,990 101,576 1,724,539 1,178,867 Supplies 8,358 13,883 60,576 399 105,388 12,995 3,481 205,080 203,955 I Otherservices 51,496 10,219 307,791 103,534 173,799 1,483,480 102,370 2,232,689 2,591,627 Insurance 30,548 3,769 9,434 43,751 42,280 Utilities 20,367 9,770 120,715 134,905 16,889 302,646 256,339 Rent 36,031 17,385 53,416 51,744 Depreciation 28,764 25,435 335,605 233,447 194,879 818,130 752,106 Total Operatin4 Expenses 519,237 189,221 1,456,348 103,933 995,852 1,908,233 207,427 5,380,251 5,076,918 Oneratinalncome(Loss) 134,327 67,600 (661,191) 328 (98,995) 12,563 287,029 (258,339) (659,016) E-2 (Continued from prior page) E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1992 1991 Nonoperatin4 Revenues or Exqenses(-� Investment earnings $1,200 $3,633 $4,792 $286,501 $221,547 $14,030 $531,703 $654,474 Special assessments: Service hookups delinquencies 28,283 297 28,580 45,853 Intergovernmental revenue 0 71,862 Other revenue 1,115 1,767 263 3,145 2,537 Interest and fiscal agent fees (17,75� (56,000) ($9,141) (1,940) (84,838) (90,816) Nonoeeratina Totals (15,442) (52,36� (9,141) 4,792 314,611 222,107 14,030 478,590 683,910 Income Before O�eratina Transfers 118,885 15,233 (670,332) 5,120 215,616 234,670 301,059 220,251 24,894 Operating Transfers In 334,727 334,727 359,125 Operating Transfers Out (65,000) (65,000) (147,895) Netincome(Loss� 53,885 15,233 (335,605) 5,120 215,616 234,670 301,059 489,978 236,124 Depreciation on contributed assets that reduces contributed capital 335,605 335,605 320,421 Retained EarninaslDeficiUJan. 1 310,336 (10,946) 19 72,530 8,123,416 2,892,227 194,006 11,581,588 11,025,043 Retained Earnings December 31 $364,221 $4,287 $19 $77,650 $8,339,032 $3,126,897 $495,065 $12,407,171 $11,581,588 City of Brooktyn Center E Enterprise Funds (Continued next page) COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1992 E. Brown Municipal Goif Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Cash flow5 from ooeratinq activities Fund Fund Fund Fund Fund Fund Fund 1992 1991 Operating income(loss) $134,327 $67,600 ($661,191) $328 ($98,995) $12,563 $287,029 ($258,339) ($659,016) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation 28,764 25,435 335,605 233,447 194,879 818,130 752,106 Changes in assets and liabilities Accounts receivable 78 2,088 293 (13,857) (19,106) (27,819) (58,323) (169,583) Inventories 28,464 (1,822) 4,482 31,124 12,112 Prepaid expenses (26,560) 2,295 863 (23,402) (17,244) Accounts payable (39,520) (2,104) (24,829) (24,156) 1,357 (112,169) 9,649 (191,772) 115,929 0o Accrued salaries and leave (5,278) 954 7,796 (4,279) (10,753) 47 (11,513) 37,646 Other nonoperating income 1,115 30,050 560 31,725 48,390 Net cash provided bv (used for) ooeratinq activities 121,390 90,063 (338,236) (23,535) 152,205 66,837 268,906 337,630 120,340 Cash flows from nonca�ital financina activities: Net borrowings(repayments) under revolving loan arrangement (25,693) (40,000) (65,693) (46,25� Interest paid on revolving loan (17,75� (56,000) (9,141) (82,898) (87,121) Operating grants received 0 71,862 Operating transfers in 334,727 334,727 359,125 Operating transfers out (65,000) (65,000) (147,895) Netcash provided bv(usedfor) noncapital financina activities (108 (96,000) 325,586 0 0 0 0 121,136 149,714 E-3 (Continued from prior page) E. Brown Municipal Gotf Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1992 1991 Cash flows from capital and related financinq activities: Capital contributions in aid of construction $151,167 $151,167 $378,847 Acquisition and construction of capital assets ($4,253) ($10,62� (151,16� ($156,325) ($916,135) ($64,701) (1,303,208) (1,752,842) Principal paid on revenue bonds (45,000) (45,000) (45,000) Interest paid on revenue bonds (1,940) (1,940) (3,695) Proceeds from sale of equipment 258 258 1,710 Netcash provided bv(usedfor)capital and related financinq activities (4,253) (10,627) 258 0 (203,265) (916,135) (64,701) (1,198,723) (1,420,980) Cash flows from investina activities: Interest on investments 1,200 3,633 $4,792 286,501 221,547 14,030 531,703 654,474 Change in restricted assets 121,755 121,755 1,755 Netcash qrovided bvinvestinp activities 1,200 3,633 0 4,792 408,256 221,547 14,030 653,458 656,229 Net increase (decrease) in cash and cash equivalents 9,887 (12,931) (12,392) (f8,743) 357,196 (627,751) 218,235 (86,499) (494,69� Cash and cash equivalents at beQinnina of the vear 7,034 42,227 47,838 91,913 608,y98 3,388,214 102,473 4,287,897 4,782,594 Cash and cash equivalents at end of the year $16,921 $29,296 $35,446 $73,170 $965,394 $2,760,463 $320,708 $4,201,398 $4,287,897 E-4 City of Brooklyn Genter Municipal Liquor Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 1992 1991 Sales Liquor $835,492 $838,198 Wine 286,301 302,435 Beer 1,373,225 1,393,410 Soft drinks 55,463 52,195 Other merchandise 114,186 92,602 Total Sales 2,664,667 2�678,840 Less: Cost of Sales 2,011,103 2,025,288 Net Operatinq Revenues 653,564 653,552 O�eratina Exp enses Personal services 343,673 339,487 Supplies 8,358 8,781 Other services 51,496 58,085 Insurance 30,548 28,911 Utilities 20,367 20,715 Rent 36,031 34,747 Depreciation 28,764 26,175 Total OAeratina Exoenses 51_9,237 516,901 Oqeratinp Income 134,327 136,651 Nononeratinq Revenue or Expense(-� Investment earnings 1,200 2,189 Other revenue 1,115 1,430 Interest and fiscal agent fees (17,757) (19,194) Total Nonoqeratina, (15,442) (15,575) Operatinq Transfers to General Fund 65,000 130,000 Net Income (Lossl 53,885 (8,924) Retained Earninqs Januarv 1 310,336 319,260 Retained Earnings December 31 $364,221 $310,336 -82- E-5 City of Brooklyn Center Golf Course Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 1992 1991 Oqeratina Revenues Green fees $216,491 $209,976 Rentals 8,885 8,622 Leagues 6,217 6,147 Golf lessons 11,433 13,706 Concessions 18,599 17,771 Merchandise 20,545 19,216 Pop machine 2,302 2,849 Miscellaneous 451 (187) Total Oneratina Revenues 284,923 278,100 Less: Cost of Sales 28,102 27,877 Net Operatinp Revenues 256,821 250,223 Operatin Ex penses Personal services 126,145 122,901 Supplies 13,883 17,223 Other services 10,219 10,680 Insurance 3,769 4,261 Utilities 9,770 7,623 Depreciation 25,435 23,963 Total O�eratina Exqenses 189,221 186,651 Operatina Income 67,600 63,572 Nononeratina Revenue or Exbense(-� Investment earnings 3,633 6,238 Interest and fiscal agent fees (56,000) (57,500) Total Nonoperatinq (52,367) (51,262) Net Income 15,233 12,310 Retained Earninas (Deficitl Januarv 1 (10,946) (23,256) Retained Earnings (Deficit) December 31 $4,287 ($10,946) -83- E-6 City of Brooklyn Center Earle Brown Heritage Center Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 1992 1991 Oaeratino Revenues Conventions $496,704 $342,909 Inn on the Farm 185,180 153,159 Office Rents 113,273 90,918 Total Oaeratino Revenues 795,157 586,986 O�eratino Exnenses i Personal services 604,842 433,681 Supplies 60,576 62,644 Other services 307,791 318,701 Insurance 9,434 9,108 Utilities 120,715 94,552 Rent 17 385 16 997 Depreciation 335,605 320,421 Total Oneratina Ex[�enses 1,456,348 1,256,104 Oqeratina Loss (661,191) (669,118) Nonoqeratina Revenue or Exnense(-1 I nterest and fiscal agent fees (9,141) (10,427) Total Nono�eratin 9,141 10,427) q Oqeratinq Transfers In 334,727 359,125 Net Loss (335,605) (320,420) Depreciation on contributed assets that reduces contributed canital 335,605 320,421 Retained Earninas Januarv 1 19 18 I Retained Earnings December 31 $19 $19 -84- E-7 City of Brooklyn Center j Recycling Refuse Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 I 1992 1991 Operatino Revenues Recycling service fees $103,862 $103,120 Recycling container sales 399 6,789 Total Ooeratinq Revenues 104,261 109,909 Operatina Exaenses Supplies 399 655 Other services 103,534 160,767 Total Oqeratin4 Exnenses 103,933 161,422 I I OaeratinQ Income (Lossl 328 (51,513) NonooeratinQ Revenues Intergovernmental revenue 71,862 Investment earnings 4,792 4,592 Nonoberatinq Totais 4,792 76,454 Net Income 5,120 24,941 I j Retained Earninqs Januarv 1 72,530 47,589 i� Retained Earnings December 31 $77,650 $72,530 -85- City of Brooklyn Center E-8 Water Utilit Fund Y STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 Totals 1992 1991 Oqeratin4 Revenues Service to customers $843,697 $675,708 Sale of ineters t8,401 18,280 Penalties 34,759 9,434 Total Oneratina Revenues 896,857 703,422 Operatino Exqenses Personal services 348,313 233,744 Supplies 105,388 94,945 Utilities 134,905 116,516 Contractual services 173,799 251,903 Depreciation 233,447 253,574 Total Oneratin4 Exaenses 995,852 950,682 Operatinc� Loss (98,995) (247,260) Nonoperatino Revenues or Expenses(-1 Investment earnings 286,501 344,834 Special assessments (for hookups delinquencies) 28,283 44,480 Other 1,767 1,107 Interest and fiscal fees (1,940) (3,695) Total Nononeratina 314,611 386,726 Net Income 21 1 139 466 5,6 6 Retained Earninas Januarv 1 8,123,416 7,983,950 Retained Earnings December 31 $8,339,032 $8,123,416 -86- City of Brooklyn Center E-9 Sanitary Sewer Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 Totals 1992 1991 Oqeratina Revenues Service to customers $1,920,796 $1,697,886 Penalties 41,884 Total O�erat�nQ Revenues 1,920,796 1,739, 0 Operatina Expenses Personal services 199,990 135,521 Supplies 12,995 19,685 Utilities 16,889 16,933 Contractual services 71,898 191,966 Metro Waste Control Commission Charges 1,411,582 1,348,313 Depreciation 194,879 1 Total O�eratinq Exr�enses 1,908,233 1,840,391 I� Oqeratina Income or Loss(-1 12,563 (100,621) Nonoperatinq Revenues Investment earnings 221,547 293,993 Special assessments (for hookups delinquencies) 297 1,373 Other 263 Total Nonoqeratinq 222,107 295,366 Net Income 234,670 194,745 Retained Earninqs Januarv 1 2,892,227 2,697,482 Retained Earnings December 31 $3,126,897 $2,892,227 -87- City of Brooklyn Center E-10 Starm Drainage Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1992 1992 1991 Oaeratin4 Revenues Service to customers $494,456 $374,040 Total O�eratina Revenues 494 456 374 040 Operatino Ex�enses Personal services 101,576 2,833 Supplies 3,481 22 Contractual services 102,370 161,912 Total O�eratin4 Exnenses 207,427 164,767 Oneratin4lncome 287,029 209,273 Nononeratina Revenues Investment earnings 14,030 2,628 Total Nonoqeratinq 14,030 2,628 Operating Transfer to General Fund 17,895 Net Income 301,059 194,006 Retained Earnin4s Januarv 1 194,006 Retained Earnings December 31 $495,065 $194,006 -$8- Cit of Brookl n Center Minnesota Y Y INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. Public Emplovees 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 employees 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. Currently investment earnings are sufficient to provide benefits. In the event that future costs would exceed earnings, other funds would be charged for the costs associated with their employees. -89- City of Brooklyn Center F-1 Internal Service Fund COMPARATIVE BALANCE SHEET December 31, 1992 Emplovee Retirement Fund ASSETS 1992 1991 Current Assets Cash, cash equivalents and temporary cash investments $1,017,036 $961,188 Total Current Assets 1,017,036 961,188 TOTAL ASSETS $1,017,036 $961,188 LIABILITIES AND FUND EQUITY, Current Liabilities Accrued hsalth liability $191,090 $196,869 Total Current Liabilities 191,090 196,869 Fund E uit Retained Earnings Unreserved 825,946 764,319 Total Fund Equitv 825,946 764,319 TOTAL LIABILITIES AND FUND EQUITY $1,017,036 $961,188 -90- City of Brooklyn Center F-2 Internal Service Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS December 31, 1992 Emplovee Retirement Fund 1992 1991 Operatina Exnenses Personal services $2,420 $19,678 Total Oneratinq Exqenses 2,420 19,678 OperatinQ Loss (2,420) (19,678) Nonoqeratina Revenues Investment earnings 64,047 69,884 Total Nonoqeratin 64 047 69 884 q Net Income 61,627 50,206 Retained Earninas Januarv 1 764,319 714,113 Retained Earnings December 31 $825,946 $764,319 I -91- City of Brooklyn Center F-3 Internal Service Fund i COMPARATIVE STATEMENT OF CASH FLOWS For the Year Ended December 31, 1992 Emplovee Retirement Fund 1992 1991 Cash flows from oneratina activities: Operating loss ($2,420) ($19,678) Adjustments to reconcile operating loss to net cash used for operating actvities Increase (decrease) in assets and liabilities Accrued health insurance liability (5,779} 12,972 Net cash used for operatinq activities (8,199) (6,706) Cash flows from investinQ activities Interest on investments 64,047 69,884 Net cash nrovided bv investina activities 64,047 69,884 Net increase in cash and cash equivalents 55,848 63,178 Cash and cash eouivalents at beainnina of vear 961,188 898,010 Cash and cash equivalents at end of year $1,017,036 $961,188 I i -92- City of Brooklyn Center, Minnesota AGENCY FUNDS Agency Funds are established to account for assets held by the City as an agent for other City Funds, governments, or individuals. The Agency Funds are maintained on the modified accrual basis of accounting. The City's Agency fund included in this section is: Emnlovee Deferred Compensation Fund: This fund was established to account for funds on deposit with the trustees who administer the City sponsored deferred compensation plan. i I� I -93- i� City of Brooklyn Center G Employee Deferred Compensation Fund STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended December 31, 1992 Balance Balance December 31, December 31, 1991 Additions Deductions 1992 ASSETS Investments for deferred compensation plans held by trustees (1) $2,046,095 $330,533 $135,476 $2,241,152 TOTAL ASSETS 2 046 095 330 533 135 476 2 241 152 LIABILITIES Due to employees for deferred compensation $2,046,095 $330,533 $135,476 $2,241,152 TOTAL LIABILITIES $2,046,095 $330,533 $135,476 $2,241,152 (1) Investments are reported at market value. -94- 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. -95- City of Brooklyn Center S-6 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1992 Balance Balance January 1, December 31, 1992 Acauisitions Disaosals 1992 Investments in General Fixed Assets Land $2,213,061 $155,398 $2,368,459 Buildings and improvements 4,588,978 267,865 $140 4,856,703 Park improvements 2,858,857 10,255 2,869,112 Furniture 741,046 219,391 22,835 937,602 Departmental equipment 3,841,232 459,278 180,535 4,119,975 Total Investments in General Fixed Assets $14,243,174 $1,112,187 $203,510 $15,151,851 Sources of Inv estments General Indebtedness $807,704 $480,000 $10,051 $1,277,653 General Fund revenues 6,242,355 208,923 78,267 6,373,011 Liquor store income 219,755 2,735 217,020 Contributions 236,284 2,940 233,344 Capital projects funds 5,670,223 423,264 96,240 5,997,247 Federal grants 1,066,853 13,277 1,053,576 Total Sources of Investments $14,243,174 $1,112,187 $203,510 $15,151,851 -96- rl i I� If� S-7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1992 Other Function Land Buildinas Imqrovements E ui ment Total General government $416,284 $416,284 Government buildings $303,770 $4,270,868 $286,845 48,802 4,910,285 i, Public safety 450 2,355,994 2,356,444 Public works 9,793 1,511,520 1,521,313 Recreation 286,325 286,325 Parks 2,064,689 575,592 2,582,267 438,652 5,661,200 I I Totals $2,368,459 $4,856,703 $2,869,112 $5,057,577 $15,151,851 S-8 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 1992 General Fixed General Fixed Assets Assets January 1, December 31, Function 1992 Additions Deductions 1992 General government $344,766 $94,309 $22,791 $416,284 Government buildings 4,642,559 267,866 140 4,910,285 Public safety 1,937,102 473,718 54,376 2,356,444 Public works 1,537,239 99,084 115,010 1,521,313 Recreation 275, 794 10, 799 268 286,325 Parks 5,505,714 166,411 10,925 5,661,200 Totals $14,243,174 $1,112,187 $203,510 $15,151,851 i 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. i 1 1 1 1 -99- r H City of Brooklyn Center COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1992 and 1991 December 31, 1992 1991 Amounts Availabie and to be Provided Amounts available in Debt Service Funds $7,279,029 $3,634,878 Amounts to be provided: From future tax increments 9 070 971 9 730 122 From future gas tax allocations 3,000,000 Total Available and to be Provided $19,235,000 $16,365,000 i General Lonq-Term Debt Pav�ble General Obligation Bonds $310,000 $610,000 Certificates of indebtedness 545,000 450,000 G.O. State Aid Street Bonds 2,885,000 3,000,000 Special Assessment Bonds 385,000 530,000 Tax Increment Bonds 15,110,000 11,775,000 Total General Long Term Debt $19,235,000 $16,365,000 -100- �t �r r� r w� rr �r r�r r� r■r City of Brooklyn Center I SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1992 General Obligation G.O. State G.O. Special G.O. Tax Total Debt Bonds Certificates Aid Street Bonds Assessment Bonds Increment Bonds Service Reouirements Year Principal Interest Principal Interest Principal Interest Princieal Interest Princi�al Interest 1993 $695,000 $54,980 $135,000 $171,180 $110,000 $17,158 $490,000 $933,468 $1,430,000 $1,176,786 1994 160,000 12,400 145,000 164,071 100,000 11,912 535,000 904,570 940,000 1,092,953 1995 150,000 156,325 85,000 7,131 590,000 871,130 825,000 1,034,586 1996 160,000 147,872 50,000 3,550 670,000 831,995 880,000 983,417 1997 170,000 138,588 40,000 1,100 1,140,000 777,523 1,350,000 917,211 0 1998 180,000 128,478 1,270,000 705,825 1,450,000 834,303 I 1999 190,000 117,560 1,450,000 622,383 1,640,000 739,943 2000 205,000 105,706 1,610,000 526,271 1,815,000 631,977 I I� 2001 220,000 92,740 1,810,000 416,806 2,030,000 509,546 I 2002 230,000 78,788 2,005,000 292,282 2,235,000 371,070 I 2003 245,000 63,821 2,115,000 155,820 2,360,000 219,641 2004 265,000 47,496 1,425,000 42,750 1,690,000 90,246 2005 285,000 29,616 285,000 29,616 2006 305,000 10,141 305,000 10,141 $855,000 $67,380 $2,885,000 $1,452,382 $385,000 $40,851 $15,110,000 $7,080,823 $19,235,000 $8,641,436 City of Brooklyn Center, Minnesota 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. With the exception of Table 9(Computation of Direct and Overlapping Debt) and information concerning school districts in the Miscellaneous Statistical Facts section, all statistical information sources were internal City records. The source of Table 9 information was the Hennepin County Department of Finance. The sources of school district information were the various school districts. _1�2_ City of Brooklyn Center TABLE 1 GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Fiscal Years Community Fiscal General Public Public Health Parks and Economic Non- Total Year Government Safetv Works Services Recreation Develo�ment Deaartmental Expenditures 1983 $1,054,064 $1,875,122 $1,288,081 $28,663 $1,268,907 $91,953 $5,606,790 1984 1,112,173 1,985,108 1,383,039 30,437 1,319,298 337,624 6,167,679 1985 1,283,050 2,143,843 1,560,842 34,326 1,389,075 416,937 6,828,073 1986 1,487,876 2,288,062 1,549,584 45,294 1,405,020 378,688 7,154,524 0 w 1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436 1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571 1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517 1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441 1992 $1,797,895 $3,938,920 $1,594,190 $114,579 $1,783,811 $187,606 $273,273 $9,690,274 (1) Funds included in this table are the General Fund. r� r r �w �r r� �r rr i City of Brooklyn Center TABLE 2 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) Last Ten Fiscal Years General Other Fiscal Property Licenses lntergovern- Charges for Fines and Financing Total Year Taxes Permits mental Services Forfeitures Misc. Sources Revenue 1983 $2,133,859 $328,019 $2,459,133 $859,928 $154,812 $244,433 $489,111 $6,669,295 1984 2,407,352 296,667 2,524,494 919,796 158,823 337,201 330,452 6,974,785 1985 2,444,153 387,806 2,618,957 979,543 187,045 348,316 311,926 7,277,746 1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 341,403 7,694,204 0 -P 1987 2,541,016 345,019 3,060,252 1,114,203 269,903 310,613 166,888 7,807,894 1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306 1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443 1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070 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 (1) Funds included in this table are the General Fund. I (TABLE3) City of Brooklyn Center TABLE 3 TAX LEVIES AND TAX COLLECTIONS (1) 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�!o of Taxes a% of Collected Tax Levy� Period Period Period Collections Tax Levv Receivable Tax Lew 1983 $2,482,369 $2,420,772 97.52% $75,437 $2,496,209 100.56% $286,787 11.55% 1984 2,836,968 2,721,413 95.93% 111,596 2,833,009 99.86% 290,746 10.25% 1985 2,931,266 2,657,094 90.65% 178,709 2,835,803 96.74% 386,209 13.18% 'I 1986 2,886,824 2,849,382 98.70% 32,739 2,882,121 99.84% 390,912 13.54% 1987 3,396,789 3,242,573 95.46% 68,651 3,311,224 97.48% 73,052 2.15% 1988 3,576,812 3,488,174 97.52% 13,090 3,501,264 97.89% 105,521 2.95% 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 4,659,449 4,478,115 96.11 79,443 4,557,558 97.81 249,882 5.36% 1992 $5,072,044 $4,818,439 95.00% $6,898 $4,825,337 95.14% $351,199 6.92% (1) Funds included in this table are the General Fund, Certificates of Indebtedness, Park Bonds, and H.R.A. (2) Includes property taxes only; lodging tax and tax increments are excluded. �s a� r �r �s City of Brooklyn Center TABLE 4 ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (1) Last Ten Fiscal Years 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992(4� Population 30,830 30.820 30,630 30.267 29,759 29.420 28,578 28,810 28,887 28,598 Real PropertY Assessed value (2): Tax Tax (3) Tax Tau City. Capacity Capacity Capacity Capacity Residential $75.252.072 578.112.774 $81.072.128 a90.912.548 591,929.246 $90,162.927 511.834.805 510.133.274 59.730.898 59.193.012 Non—resi dential 122,369,087 124,305,853 126,444,994 125.109.658 139,433,999 154,031,355 19,707.624 16,185,832 16,305,868 16,013,701 Area—wide allocation (t.437.243) (3.386.456) (2.134,213) (2.097.533) (1.345.864) (8.148.681) (977.841) (1.365.23� (1.384.936) (1.550.09� 196.183,916 199,052,171 205,382,909 213,924,673 230,017,381 236,045,601 30,564,588 24,953.871 24,651.830 23,656,616 Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,518 1,315,724 1,374,157 Total assessed value 196,183,916 198,974,171 204,640,435 209,867,062 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459 Estimated Market Value 725,476,089 775,162,400 788,107,800 813,377,800 854,846.550 910,336,300 950,463,900 1,000,2�,000 1,016,754,000 1,015,968,800 Personal Prope� i Assessed value 3,973,587 4,148,726 4,276,221 4,297,916 4,296,001 4,510,313 190,299 530,528 539,121 543,237 O Estimated marketvalue 9,240,000 9,648,200 9,944,700 9,981,200 9,990,700 10,489,100 3,627,500 10,610,520 10,564,700 11,349,900 i Total Taxable Proaertv Assessed value $200,157,503 5203,122,897 5208,916,656 5214,158,978 5228.875,794 5230,771,441 528.657.382 523,943,879 S23,875,227 522.825,�6 I Estimated marketvalue $734,716,089 $784,810,600 $798,052,500 5823,359,000 5864,837,250 a920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 51,012,179,300 Assessed Value as a aercent of Estimated Market Value 27.249b 25.889b 26.18�fo 26.0196 26.4696 25.064b 3.009b 2.374b 2.3296 2.269b Per Caoita Valuations Assessed Value 56,492 56,591 a6,821 $7,076 S7.�1 $7,844 S1.003 $831 $827 5798 Estimated Market Value $23,831 $25,464 $26,055 527.203 S29,061 531,299 533,386 $35,088 535,563 535,393 (1) Source: City of Brooklyn Center Assessing Department (2) The Minnesota Legislature changed the property tau system for taues payable in 1989. The tax base of property was changed from assessed values to tax capaciry values. (3) The reduction in residential values is due to a change in the state mandated formula from gross tax capacity to net tax capacity. (4) Population Source: City of Brooklyn Center Planning Department Estimate City of Brooklyn Center TABLE 5 DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES (1) Last Ten Fiscal Years TAX RATES IN MILLS (2) Hennepin School Districts Gounty Total City, School, and County Year Vo-Tech No.286 No.279 No.281 No.11 Special No.286 No.279 No.281 No.11 Collectible Cit 3 School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka 1983 15.971 1.119 42.896 46.035 52.901 45.474 33.557 93.543 96.682 103.548 95.002 1984 17.096 1.446 49.965 54.909 58.326 55.225 35.007 103.514 108.458 111.875 107.328 1985 16.506 1.490 49.332 51.199 56.100 52.830 34.443 101.771 103.638 108.539 103.779 1986 17.183 1.535 52.545 54.345 59.450 55.740 35.566 106.829 108.629 113.734 108.489 1987 18.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408 1988 19.237 1.493 59.372 61.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823 TAX RATES IN TAX CAPACITY RATES(2) 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 65J66 58.723 56.525 40.888 117.019 128.089 121.046 118.335 0 TAX LEVIES iN DOLLARS Hennepin School Districts County Total City, Year Vo-Tech No.286 No.279 No.281 No.11 Special Schools, Collectible Cit 3 School Earl Brown Osseo Robbinsdale Anoka Districts and Countv 1983 $2,482,369 $202,256 $2,790,808 $2,625,207 $2,781,573 $1,049,119 $6,716,839 $18,648,171 1984 2,836,968 287,933 3,328,173 3,090,749 3,178,504 1,279,696 7,085,080 21,087,103 1985 2,931,266 310,394 3,442,445 3,014,744 3,187,821 1,286,533 7,207,150 21,380,353 1986 2,886,824 327,794 3,776,253 3,194,101 3,476,1Q4 1,329,107 7,593,315 22,583,498 1987 3,396,789 293,194 3,900,388 3,409,323 3,726,934 1,327,348 8,088,560 24,142,536 1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559 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 (1) Sources: (1983-1991) Hennepin County Department of Property Tax Public Records. (1992) City of Brooklyn Center Assessing Department (2) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989. (3) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center. �■�r r■� r� a� r �r r.� �r r i City of Brooklyn Center TABLE 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Collection Collections Year Assessment of of Prior Total to Current Collected Billinqs Amount Billinqs Years Collections LevX 1983 $981,733 $908,531 92.54% $57,463 $965,994 98.40% 1984 813,013 768,241 94.49% 79,617 847,858 104.29% I 1985 715,185 698,756 97.70% 84,781 783,537 109.56% 1986 631, 296 631,165 99.98% 11, 953 643,118 101.87% �i 1987 572,851 552,168 96.39% 3,139 555,307 96.94% I 1988 556,028 526,594 94.71 2,723 529,317 95.20% 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% 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% City of Brooklyn Center TABLE 7 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA Last Ten Fiscal Years Less: Ratio of Net Net Gross Amounts Net Bonded Debt Bonded Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per Year Pooulation Value Debt (1� Service Fund Debt Values Ca ita 1983 30,830 $200,157,503 $2,800,000 $678,318 $2,121,682 1.06% $68.82 1984 30,820 203,122,897 2,545,000 628,786 1,916,214 0.94% 62.17 1985 30,630 208,916,656 2,290,000 846,014 1,443,986 0.69% 47.14 1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49 E 1987 29,759 228,875,794 1,740,000 683,294 1,056,706 0.46% 35.51 1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41 Less: Ratio of Net Net Tax Gross Amounts Net Bonded Debt to Bonded Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per Year Po�ulation Value Debt Service Fund Debt Value C apita 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�10 4.29 1992 (2) 28,598 $22,825,696 $310,000 $504,146 ($194,146) -0.85% ($6.79) (1) Includes only bonded debt supported by property taxes. (2) Source: City of Brooklyn Center Planning Department Estimate r City of Brooklyn Center Table 8 COMPUTATION OF LEGAL DEBT MARGIN December 31, 1992 Estimated market value for taxes payable in 1992 $1,012,179,300 Debt limit, 2% of market value 20,243,586 Total bonded debt 18,690,000 Deductions (See Note 5): A. Bonds: 1. Special Assessment Bonds 385,000 2. State Aid Street Bonds 2,885,000 3. Tax Increment Bonds 15,110,000 18,380,000 B. General Debt Service Funds 504,146 Total Deductions 18,884,146 Total Debt Applicable to Debt Limit (194,146) Legal Debt Margin, December 31, 1992 $20,437,732 i 1 1 _11�_ City of Brookiyn Center TABLE 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1992 City's Share Governmental Unit Gross Debt Sinkin4 Funds Net Debt Percent Amount Direct Debt: Citv of Brooklvn Center (1) $310,000 $504,146 ($194,146) 100.0% ($194,146) Overlapping Debt: School Districts: No. 281 Robbinsdale 590,000 388,417 201,583 10.2% 20,561 No.11 Anoka 61,913,635 5,805,907 56,107,728 5.9% 3,310,356 No. 279 Osseo 59,541,292 1,648,708 57,892,584 26.8% 15,515,213 No. 286 Brooklyn Center 5,500,000 31,000 5,469,000 100A% 5,469,000 Metropolitan Transit 5,850,000 2,900,000 2,950,000 1.5% 44,250 Metropolitan Council (2) 88,375,000 27,597,379 60,777,621 1.5% 911,664 Hennepin County 65,895,000 5,752,983 60,142,017 2J% 1,623,834 Hennepin County Park Reserve District 8,350,000 693,131 7,656,869 2J% 206,735 Total Overlabqina Debt 296,014,927 44,817,525 251,197,402 27,101,613 I Total Direct and Overlapping Debt $296,324,927 $45,321,671 $251,003,256 $26,907,467 (1) Includes only general obligation debt which is being repaid through property taxes. (2) Excludes $293,455,000 less $31,327,349 in sinking funds of Metropolitan Council issued G.O. Sewer Bonds. These bonds are supported from sewer charges to governments (including Brooklyn Center) in the metropolitan sewer system. Direct Overlapping Comqarative Net Debt Ratios Charaeable to Citv Total Debt Debt Debt to tax capacity value $22,825,696 117.88% -0.85% 118.73% Debt to market value $1,012,179,300 2.66% -0.02% 2.68% Per capita debt, population 28,598 $940.89 ($6.79) $947.68 r TABLE 10 City of Brooklyn Center RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscai Years Debt Service Total (1) Totai (2) as a Percent Debt General of General I Year PrinciQal Interest Service Exqenditures Exqenditures 1983 $240,000 $210,620 $450,620 $5,606,790 8.04% 1984 255, 000 250,132 505,132 6,167, 679 8.19% 1985 255,000 251,095 506,095 6,828,073 7.41 1986 275 000 507 558 782 558 7 154 524 10.94% 1987(3) 2,475,000 930,252 3,405,252 7,649,436 44.52% 1988 640,000 682,561 1,322,561 8,502,109 15.56% 1989 635,000 626,068 1,261,068 9,062,571 13.92% 1990 434 517 11.83% 530,000 585,992 1,115,992 9, 199� 940,000 746,401 1,686,401 9,935,441 16.97% 1992(4) $1,880,000 $1,195,204 $3,075,204 $9,690,274 31.73% (1) For years 1983 through 1986, General Obligation Bonds and G.O. Tax Increment Bonds are included. From 1987 onward, Improvement Bonds, formerly Special Assessment Bonds, are also included. From 1991 onward, Certificates of Indebtedness are included. (2) The fund included in the expenditures column is the General Fund. (3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. (4) Amounts for 1992 are higher because Tax Increment Bonds of 1983 were called for payment prior to maturity. -112- City of Brooklyn Center TABLE 11 SCHEDULE OF WATER REVENUE BOND COVERAGE Last Ten Fiscal Years Ratio of Net Non- Net Revenue Operating Operating Gross Revenue to Debt Year Revenue Revenue Revenue Exqensesfl� Available Princiqal Interest Total Service 1982 $507,421 $490,149 $997,570 $377,321 $620,249 $40,000 $18,720 $58,720 10.563 :1 1983 443,565 465,987 909,552 397,265 512,287 40,000 17,160 57,160 8.962 :1 1984 482,558 496,357 978,915 459,771 519,144 40,000 15,600 55,600 9.337 :1 W 1985 546,817 512,538 1,059,355 478,958 580,397 45,000 14,040 59,040 9.831 :1 1986 473,279 488,834 962,113 506,466 455,647 45,000 12,399 57,399 7.938 :1 i 1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1 I, 1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1 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 (1) Excludes depreciation and interest on bonds. �r r �r �r �■ir a� r i �r ai r +i■� �r i r r� �r City of Brooklyn Center TABLE 12 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Commercial Residential Construction (1) Construction (1) Property Value (2) Bank Year Value Units Value Commercial Residential Non-Taxable Deposits(� 1983 $5,342,000 140 $8,677,800 $235,045,689 $490,430,400 $52,828,091 N/A 1984 6,037,900 77 8,954,300 268,460,800 506,701,600 52,828,091 N/A j 1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 N/A I I 1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A 1987 7,220 9 885,202 246,784,100 608,890,900 92,384,868 N/A 1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A 1989 7,288,205 4 278,138 321,452,800 678,898,700 �3,719,768 $219,077,986 1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488 1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156 I 1992 $2,077,865 21 $1,483,710 $344,860,700 $667,318,600 $107,747,100 $199,800,971 (1) Construction values were supplied by the City of Brooklyn Center Planning Department. I (2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department. I I (3) Bank deposits were supplied by the banks. r City of Brooklyn Center TABLE 13 PRINCIPAL TAXPAYERS December 31, 1992 Percentage 1992 of total Market Market Tax�ayers Tvpe of Business Valuation (11 Value Equitable Reai Estate Society of America Brookdale Shopping Center $66,438,700 6.56% Ryan Construction Office Buildings 17,911,500 1.77% Dayton-Hudson Corp Department Store 14,863,200 1.47% Commercial Partners Brookdale Square Shopping Center 13,326,700 1.32% o Norman Chazin Apartment Buildings 10,497,900 1.04 /o Sears Roebeck and Company Department Store 9,419,100 0.93% Robert H. Bradley Office and Warehouse Building 9,089,700 0.90% Shingle Creek Plaza II Land, Warehouse and Office Buildings 8,924,600 0.88% Carson Pirie Scott Department Store 7,290,300 0.72% Plaza Real Estate Partners Hotel/Motel 7,040,000 0.70% Total Market Value $164,801,700 16.28% TOTAL CITY MARKET VA�UE $1,012,179,300 (1) Market values were supplied by the City of Brooklyn Center Assessing Department. -115- City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE Effective January 1, 1993 (Continued next page) Policy Period Tvqe of Covera4e and Details From To Liabilitv Limits l. Statutorv Liabilitv to Em�lovees a. Workers' Compensation 01-01-93 01-01-94 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: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction or invasion of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 01-01-93 01-01-94 $600,000 combined single limit (2) Property damage 01-01-93 01-01-94 $600,000 combined single limit (3) Personal injury 01-Q1-93 01-01-94 $600,000 combined single limit b. Automobile liability, comprehensive 01-01-93 01-01-94 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence c. Liquor stores' dram shop 01-01-93 01-01-94 $1,000,000 each common cause d. Golf Course and Central Park 04-01-93 10-31-94 $1,000,000 each common liquor liability cause e. Personal accident, Council 03-01-93 03-01-94 $100,000 accidental death Commissions $400/week short term disability f. Personal accident, Volunteers 05-01-93 05-01-94 $100,000 accidental death $400/week short term disability $1,000 Medical -116- City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 1993 Buildings and Policy Period Structures Content: (Replacement (Replacement Tv�e of Coveraqe and Details From To Cost� Costl I II. Insurance on Citv Pro�ertv 01-01-93 01-01-94 a. Public and institutional property, all risk, blanket $25,853,500; $1,d00 deductible replacement value on buildings. (1) Civic Center $5,770,400 $547,000 (2) East Fire Station $566,200 $60,000 (3) Municipal Service Garage $1,293,100 $236,000 (4) Elevated Water Towers 3 locations $3,347,600 $0 (5) Park Shelter Buildings 17 locations $1,403,000 $55,000 (6) Pump Houses 10 locations $867,300 $110,000 (7) Lift Stations 10 locations $1,008,100 $71,000 i (8) Meter Station $15,500 $0 9 Stora e Buitdin $386, i 00 $0 O 9 9 (10) Outdoor lighting systems 7 locations $316,000 $0 (11) Liquor Store and Fire Station $545,200 $211,000 (12) Humboldt Liquor Store $223,400 $171,000 (13) Leased Liquor Store $46,400 $215,000 (14) Movable Properties $0 $186,000 (15) Pedestrian Bridge 2 locations $1,034,000 $0 (16) Picnic Shelter $52,500 $0 (17) Earle Brown Heritage Center $6,809,000 $1,121,000 (18) Centerbrook Golf Course Club House $288,400 $22,000 (19) Centerbrook Golf Course Garage $20,000 $2,000 (20) Lions Park Concession Stand $33,000 $3,000 Liabilitv Limits b. Boiler and machinery 01-01-93 01-01-94 $3,000,000 per accident c. Automotive physical damage 01-01-93 01-01-94 (1) Comprehensive ACV $250 deductible (2) Collision ACV $500 deductible IV. Criminal Acts a. Faithful performance blanket position $100,000 per loss b. Money and securities (broad form) Various c. Depositor's forgery $100,000 -117- �I Cit of Brookl n Center TABLE 15 Y Y DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enrollments (3) Mpls-St.Paul No 286 Fiscal Unemployment C.P.I. No 11 No 279 No 281 Earle Year Population Rate (1� Anoka Osseo Robbinsdale Brown 1983 30,830 6.4% N/ A 1,300 2,184 622 1,311 1984 30,820 4.8% N/ A 1,103 2,039 700 1,310 1985 30 630 4.5% N/ A 1 032 2 003 567 1 326 1986 30,267 3.9% 1.3% 1,011 y,838 555 1,361 1987 29,759 4.1 3.0% 989 1,674 570 1,376 1988 29,420 3.5% 5.0% 989 1,674 563 1,456 I I' 1989 28,578 3.5% 4.1 671 1,674 563 1,652 1990 28,810 3.2% 4.1 642 1,616 540 1,747 1991 28,887 4.6% 2.3% 807 1,680 521 1,327 1992 28,598(4) 4.4% 1.4% 671 1,178 526 1,709 (1) Minnesota Department of Jobs and Training, Research and Statistics Dept. Twin Cities metro area average for year. (2) U.S. Department of Labor, Bureau of Labor Statistics. All urban consumers, (CPI-U) 1982-84, second half change from prior year. (3) School enrollment data was supplied by the schools. (4) Source: City of Brooklyn Center Planning Department Estimate -118- TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1992 Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Government Council-Manager Fiscal Year Begins January 1 Area of City 8 1/2 square miles Miles of Streets City 105.69 County 6.49 State 1 p, 79 Miles of Storm Sewers 41.13 Number of Street Lights: Owned by N.S.P 1003 Owned by City 73 Building Permits: Number Estimated Issued Cost 1992 573 $14,286,465 1991 466 8,800,980 1990 504 8,035,605 1989 526 19,217,696 1988 554 10,846,987 1987 573 10,421,724 1986 604 28,594,810 1985 521 32,328,938 1984 545 15,606,354 1983 660 16,096,550 City Employees as of December 31, 1992 Regular full-time 144 Temporary or part-time 175 Total S1 g Fire Protection: Number of Stations 2 Number of Full-time Employees 1 I Number of Volunteer Firemen 35 Police Protection: Number of Stations 1 Number of Full-time Employees 54 Number of Part-time Employees 16 -119- City of Brookl n Center TABI.E 16 Y MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 1992 prior page) Parks and Recreation: Park property totals 522 acres developed to serve a wide variety of recreational interests. Area include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Playgrounds 17 Park shelters 17 Ice skating rinks 7 Hockey rinks 5 Softball diamonds 26 Baseball diamonds 6 Tennis courts 18 Basketball courts 15 I Municipal Water Plant: Number of connections 8,910 Average daily consumption in gallons 3,625,284 Peak daily consumption in gallons 10,168,000 Plant capacity gallons er da 17,652,000 P Y Miles of water mains 114.052 Number of fire hydrants 835 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.73 Municipal Sewer Plant; Number of connections 8,798 Miles of sanitary sewer 104.98 Daily disposal capacity in gallons 10,938,240 Number of lift stations 10 Residential rate per quarter $40.00 Municipal Liquor Stores (Off-sale): Number of owned stores 2 Number of leased stores 1 1992 sales $2,664,667 Elections: Last General Election November 3, 1992 Registered voters 20,640 Votes cast 15,642 Percentage of registered voters voting 76% Last Municipal Election 1992 Registered voters 20,640 Votes cast 15,642 Percentage of registered voters voting 76% -120- 1