HomeMy WebLinkAboutCAFR-1989 COMPREHENSIVE
e ANNUAL
AUDITED FINANCIAL REPORT
of the
CiTY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1989
GERALD G. SPLINTER, CITY MANAGER
e
Prepared by
FINANCE
THE DEPARTMENT OF
Paul W. Holmlund, Director
1
Member of Government Finance Officers
Association of the United States and Canada)
1
Citv �ooklvn Center
COMPREH�NSIVE ANNUAL �.�VANC� �POR�
Year Ended pecember 1989
TABLE QE CONTENTS
Exhibit Page
Number Number
I. ,�NTRODUC'�ORY SECTION
Ti tl e Pa ge
Table of Contents
City Officials 1
Organization Chart 2
City Manager's Letter 3
Finance Director's Letter 4- 12
Certificate of Achievement 13
II. ��NANCIAL S�C�'ION
Independent Auditors's Report 14 -15
A. General Purpose Financial Statements
(Combined Statements Overview):
1 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 (GAAP Basis)
And Actual General and Special Revenue Funds 3 20
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings Proprietary
Fund Type 4 21
Combined Statement of Changes in Financial
Position Proprietary Fund Type 5 22
Notes to Financial Statements 23 51
Citv B�ooklvn Center
COMPREHENSIVE ANNUAL FINANCI� REPORT
Yea� Ended pecembe� 1989
TABLE Q� CONTENTS
Statement/
Schedule Page
Number Number
B. Combining and Individual Fund Financial Statements:
General Fund:
Balance Sheet A-1 53
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget
(GAAP Basis) and Actual A-2 54
Schedule of Revenue Other Financing
Source s- Bud get and Actual S-1 55 57
Schedule of Expenditures Compared to
Budget S-2 58 62
Special Revenue Funds:
Combining Balance Sheet B-1 64
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances Budget and Actual B-2 65 66
Debt Service Funds:
Combining Balance Sheet C-1 69
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 70 71
Capital Projects Funds:
Combining Balance Sheet D-1 73
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 74
Project-Length Schedule of Construction
Projects Capital Improvements Fund S-3 75
Project-Length Schedule of Construction
Projects Municipal State Aid
Construction Fund S-4 76
Cit B C
I X rooklvn enter
COMPREH�NSIV� ANNUAL FINANCIAL REPORT
Yea� Ende� pecembe� 3.,� 1989
TABLE CONTENTS
I Statement/
Schedule Page
Number Number
Project-Length Schedule of Construction
I Projects Special Assessment
Construction Fund S-5 77
Enterprise Funds:
Combining Balance Sheet F-1 79 80
Combining Statement of Revenues, Expenses and
I Changes in Retained Earnings F-2 81
Combining Statement of Changes in Financial
Position F-3 82
Statement of Revenues, Expenses, and Changes
in Retained Earnings Municipal Liquor
Fund F-4 83
Statement of Revenues, Expenses, and Changes
in Retained Earnings Golf Co urse Fund F-5 84
Balance Sheet Public Utilities Fund F-6 85 86
Statement of Revenues, Expenses, and Changes
in Retained Earnings Public Utilities
Fund F 87
Statement of Revenues, Expenses, and Changes
in Retained Earnings Recycling and
Refuse Fund F-8 88
Schedule of Water Operating Expense S-6 89
I Schedule of Sewer Operating Expense S-7 90
Citv �oo}�lvn Center
COMPREHENSIV� �iUAL FINANCIAL �tEPORT
Year Ended pecembe� 3� a 989
TABLE CONTENTS
Statement/
Schedule Page
Number Number
Statement of Changes in Assets and Liabilities
Employee Deferred Compensation Fund G 92 r
General Fixed Asset Aceount Group:
Schedule of Changes in General Fixed Assets
By Sources S 94
Schedul e of General Fi xed Assets By
Funetion and Activity S-9 95
Schedule of Changes in General Fixed Assets
By Funetion and Activity 5-10 g6
General Long-Term Debt Account Group:
Comparative Schedule of General Long-Term Debt H 98
Summary of Debt Service Requirements
to Maturity I 99
III. STATISTICA� �SECTIOIy
Tabl e
l�r►b er
General Governmental Expenditures and Other
Uses 1 101
General Governmental Revenues and Other
Financing Sources 2 102
Property Tax Levies and Collections 3 103
Assessed and Market Value of Taxable
Property 4 104
Property Tax Rates and Tax Levies All
Overlapping Governm ents 5 105
Special Assessment Collections
6 106
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 7 107
Citv_ Brooklyn Center
COMPREHENSIV� �VIUAL FINANCIAL REPOR�
Yea� Ended December 3]� 1989
�'AB[,,E Q� CQNTENTS
Tabl e Pa e
g
Number Number
Computation of Legal Debt Margin 8 108
Computation of Direct and Overlapping Debt 9 109
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures 10 110
Revenue Bond Coverage 11 111
Property Value and Construction 12 112
Principal Taxpayers 13 113
Insurance Coverage 14 114-115
Schedule of Cash and Temporary Cash Investments 15 116
Demographic Statistics 16 117
Miscellaneous Statistics 17 118-119
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1
�itv Brooklvn Center
�ITY QE�IG��L�
Year Fnded pecember 3.1,� 1989
ELECTED Q�ICIALS
Term of Off ice Term Expi res
Mayor Dean Nyquist Four Years 12/31/90
Councilman Todd Paulson Four Years 12/31/92
Councilman Gerald Pedlar Four Years 12/31/92
Councilman Philip Cohen Four Years 12/31/90
Councilwoman Celia Scott Four Years 12/31/90
�PPOIN�� OFFICIALS
City Manager Gerald G. Splinter
City Clerk Darlene Weeks
City Treasurer Paul W. Holmlund
City Attorney Holmes Graven
Department Heads:
Finance Paul W. Holmlund
Public Works Sy Knapp
Pol ice James Lindsay
Fire Ronald Boman
Planning and Inspection Ronald Warren
Recreation Arnold Mavis
Assessment Mark Parish
Liquor Stores Gerald Olson
Personnel Coordinator Geralyn Barone
EDA Coordinator Brad Hoffman
City Engineer Mark Maloney
Public Works Superintendent Richard Ploumen
Health Officer Duane Orn, M.D.
Fire Marshall Ronald Boman
Sanitarian Thomas Heenan
Civil Defense Coordinator James Lindsay
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ORGANIZATION CHART COUNCIL-MANAGER PLAN
City of Brooklyn Center, Minnesota
ADVI50RY CHARTER COMMISSION
Capital Improvement Review Board L (appointed by district court)
ELECTORATE
ADVISORY
Housing Commission CITY ATTORNEY
N ,L
i
ADVISORY CITY COONCIL yRA COORDINATOR
Human Rights Resources Commission
4
4
J r
ADVISORY
Parks and Recreation Commission
PERSONNEL COORDINATOR
t
CITY MANAGER
ADVISORY
Planning Commission
CITY CLERK
i 4
N
I
DIRECTOR
Emergency
Prepared-
ness
k- e t f r
DIRECTOR DIRECTOR DIRECTOR CHIEF DIRECTOR CHIEF MANAGER DIRECTOR ASSESSOR
Planning of Finance Poliee of Volunteer Liquor Public Tax
and Recreation Department Department Environ- Fire Stores Works Assessment
Inspection City mental Department Department Department
Department Treasurer Health
L 4 �L ir s L Lr i.. L.
I
I� 1 w •r F- k- 1 I
Golf Recreation Park Government Engineering Street Public
Course Programs Maintenance Buildings Division Division Utilities
and Division Division Division
Community
Center
L. .J ��a 4 Lr L ir ,l L..
CITY 6301 SHINGLE CREEK PARKWAY
I' B �F
ROOKLYN BROOKLYN CENTER, MINNESOTA 55430
TELEPHONE 561-5440
C ENTER
EMERGENCY POLICE FIRE
911
June 1, 1990
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
I hereby transmit the Comprehensive Annual Financial Report of the I
City of Brooklyn Center for the fiscal year ended December 31 1989
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 Certifi-
cates of Achievement for Excellence in Financial Reporting to those
governments whose Comprehesive Annual Financial Reports are judged to
conform substantially with high standards of public financial report-
ing, incl uding general ly accepted accounting principl es promul gated by
the Governmental Accounting Standards Board. Our financial reports
for the past six 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.
Resp etfully submitted,
Gerald Splinter
City Manager
�t��'�'F�
WE6 41�4MfRlCI QIT
z I
1
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ciTY 6301 SHINGLE CREEK PARKWAY
oF BROOKLYN CENTER, MINNESOTA 55430
B ROOKLYN
TELEPHONE 561-5440
C ENTER EMERGENCY- POLICE FIRE
911
i
June 1, 1990
Mr. Gerald G. Splinter
City Manager
City of Brooklyn Center
Dear Mr. Splinter:
t The comprehensive annual financial report of the City of Brooklyn
Center for the fiscal year ended December 31, 1989, 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 government. 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 and results of operations of the various funds and account
groups of the gov ernment. Al l discl osures necessary to enabl e the
reader to gain an understanding of the government's financial
activities have been included.
The comprehensive annual financial report is presented in three sec-
tions: introductory, financial, and statistical. The introductory
section includes this transmittal letter, the government's organiza-
tional 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 auditors' report on the financial statements
and schedules. The statistical section includes selected financial
and demographic information, generally presented on a multiyear basis.
The government is required to undergo an annual single audit in
conformity with the prov isions of the Singl e Audit Act of 1 98� 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 auditors' reports on the internal control struc-
ture and compliance with applicable laws and regulations, are issued
as a separate report.
�t��C��,,
roatutuuewarr
1 I I
"=z.,,,�.. C1Mp',�`' i
�ieng_,
—4—
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
serv ices. The City al so operates three off-sal e 1 iquor stores, a
public water and sewer utility, and a golf course. Net revenue
produced in excess of working capital requirements by the municipal
liquor stores operations have been used toward financing current
expense and capital outlay programs of the General Fund.
REPOI,�'ING ENTITY
In accordance with Governmental Accounting Standards Board pronounce-
ments, the City's financial statements include all funds, account
groups, departments, agencies, boards, commissions, and other organi-
zations 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 City 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 redevelop-
ment 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 Couneil, the Council
rev iews and approves tax 1 ev ies, the City prov ides maj or community
development financing for their activities, and the City Manager is
the Executive Director, they are considered to be component units for
the Ci ty.
�XCLUDED:
The Brooklyn Center Fire Department Relief Association.
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This association is organized as a non-profit organization by its
members to provide pension and other benefits to such members in
aecordance 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 associa-
tion and are only rev iewed by the City, and the association pays bene-
fits directly to its members. Because the 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 Techni:cal Institute)
These districts, like all school districts in Minnesota, are complete-
ly independent of any other governmental entity. They have their own
elected Board of Education, levy their own taxes and prepare and issue
their own finaneial reports.
ECONQ� 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 inter-
section of four major highways which make it a very attractive location.
MAJOR �NITIATIV�S
The year 198g was dominated by the City's efforts, through the E.D.A.,
to restore the Earle Brown Farm historical site and develop it as a
convention center. This $9,000,000 project, known as the Earle Brown
Heritage Center, is complete and opened for business in April 1990
The center is almost fully booked for the rest of this year, which
gives it the promise of a bright future.
The City of Brooklyn Center, along with the City of Fridley and the
City of Brooklyn Park, joined to form the North Metro Convention
Bureau. Revenues for the Bureau come from a 3� lodging tax on all
hotel and motel rooms in the three cities. The Bureau's purpose is to
promote conventions, many of which will use the facilities of the
Earl e Brown Heritage Center.
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In order to understand 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,
demographie and housing market data analysis, survey of apartments,
I and interv iews with persons knowledgeabl e about the housing market.
From the findings, strategies are suggested for maintaining and
improving the marketability of neighborhoods and serving the changing
needs of residents.
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 recycl ing programs took effect in
1989 In response, the City opened a Recyeling and Refusing 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.
�]I A�ICIAL �NFORMATION
Management of the government is responsibile for establishing and
maintaining an internal control structure designed to ensure that the
assets of the government are protected from loss, �heft or misuse and
to ensure that adequate accounting data are compiled to allow for the
preparation of financial statements in comformity with generally
accepted accounting principles. The internal control structure is
designed to provide reasonable, but not absolute, assurance that these
ob'ectives are met. Th c
e once t of reasonabl e assurance reco nizes
P g
that: 1) the cost of a control shoul d not exceed the benefits l ikely
to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
Single 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 pl ace to ensure compl iance
with applicable laws and regulations related to those programs. This
internal control structure is subject to periodic evaluation by
management and the independent auditors.
As a part of the government'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 pro-
grams, as well as to determine that the government has complied with
appl icabl e 1 aws and regul ations. The resul ts of the gov ernment's
single audit for the fiscal year ended December 31 1989 provided no
instances of material weaknesses in the internal control structure or
significant violations of applicable laws and regulations.
i
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Budgeting Control s. In addition, the gov ernment maintains budgetary
controls. The objeetive of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual appropriated
budget approved by the government's governing body. Activities of the
general fund and special revenue funds are included in the annual
appropriated budget. Project-length finaneial 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 funetion and activity within an individual
fund. The government also maintains an encumbrance accounting system
as one technique of accompl ishing budgetary control. Encumbered a-
mounts 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 finan-
cial section of this report, the government continues to meet its
responsibility for sound financial management.
General Fund Functions. The following schedule presents a summary of
general fund revenues for the fiscal year ended December 31, 1989 and
compares them to 1988.
r
General Fund �evenues Other �inancin� Sourees
Increase
of (Decrease)
1989 Total 1988 From 1988
1 Taxes $3,325,101 35.7� $3,318,656 6 445
License permits 365,247 3.9� 329,783 35,�+64
Intergovernmental
revenue 3,628,255 38.9% 3,078,491 549,764
Charges for
services 1,124,167 12.1% 1,215,635 (91,468)
Court fines 278,812 3.0� 243,952 34,860
Misc revenues 425,356 4.5� 363,918 61,438
Other financing
sources ___176,505 1.9% ___337,871 (161,366)
TOTAL $9 ,323,�►43 100_0� �8,888,306 $_435,137
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The large increase in intergovernmental revenue is the result of a
decision by the State of Minnesota to increase its local government
aid. By the mechanism of the levy limitation laws, this in turn
forces there to be virtually no increase in the City's property tax
rev enues. Charges for serv ices decl ined because engineering fees
dropped more than 55� from the prior year. These fees are charged to
Capital Projects Funds and the Economic Development Fund for the
services of the City's Engineering Department on construction pro-
jects. These fees tend to be volatile because spending on construc-
tion can vary so much from one year to the next. Other financing
sources were less because the 1988 operating transfers were set
unusually high to support extra General Fund capital outlays. The
1989 level is a more normal figure.
The following schedule presents a summary of general fund expenditures
for the fiscal year ended December 31, 1989 and compares them to 1988.
Gene�a,� Fund E�nenditures
Increase
of (Decrease)
1989 Total 1988 From 1988
General Government $1,793,495 19•8� $1,768,607 24,888
Public Safety 3,103,222 34.2� 2,716,205� 387,017
Public Works 1,754,800 19•4� 1,768,918 (14,118)
Community Health
Services 81,043 .9� 69,117 11,926
Parks Recreation 1,814,391 20.0� 1,706,516 107,875
Economic Develop-
ment 168,305 1.9� 162,271 6,034
Non-Departmental 347,315 3.$% 310,475 36,840
TOTAL $9,062,571 100�0� $8,502,109 $560,462
Public Safety expenditures were increased by the addition of two
pol ice officers and a housing inspector to the payrol l. Suppl ies,
contractual services, and capital outlays were all increased to sup-
port the higher ov eral l 1 ev el of acti v ity. Communi ty HeaZ th Serv ices,
while still a small part of the total budget, increased 17�. It was a
joint three city health department until one city dropped out in
early 1989, causing Brooklyn Center and the other remaining city to
pay more of the cost.
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1
GENERAL FUND �LANCE
The fund balance of th G
e eneral Fund d cr b 8
e eased 8 46 or in
3 1 5�
Y r
1 8. Du i 8
9 9 r ng 19 9, the City changed its method of accounting for
employee benefits in the Governmental Fund Types by recognizing all
vacation and sick leave costs as expenditures when the benefits are
earned. The cumulative effect of the change on the General Fund was a
charge of $341 against the excess of revenues over expenditures
and other financing sources in 1989 Were it not for this change, the
fund bal ance woul d hav e increased by $253,�9$ or 4.5% in 1989
The ending fund balance of $5,569 is the equivalent of six months
of expenditures for the 1990 budget. General property taxes and
intergovernmental revenue represent 69� of the budgeted general fund
revenue for 1990 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 typical ly receive as 1 ittl e as 10� of their
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 has decreased to
$134,618 as a result of this disclosure.
ENTERPRIS� OPERATIONS
The City's enterprise operations are com rised of three se arate and
P P
distinctive activities: Liquor stores, the Water and Sewer utility
and the Golf Course. The liquor operation is composed of three
stores. Two are city owned and the third is leased. In May 1989 a
new long-term lease was signed for the third store and it was
remodeled to improve visability and access.
The Water and Sewer util ity is 1 argely dev el oped and al ready reaches
all parts of the City. Rates for both water and sewer were increased
effective January 1, 1989 Water sales were down because people seem
to be giving up on lawn sprinkling now in the third year of the
drought. Three fourths of the sewer operating expenses are fees paid
to the Metro Waste Control Commission for sewage treatment and those
fees increased 3•5�. Depreciation expense for the water utility
increased because large capital outlays made in 1988 were depreciated
beginning in 1989 Total operating expenses were down for Water and
increased moderately for Sewer.
Centerbrook Golf Course began operating in 19$$ and while it is show-
ing losses, it did substantially better than had been projected.
Rounds played have been constant at about 35,000 a year. Green fees
are increasing in 1990 Expectations are for the golf course to be
cl ose to breaki ng ev en in 1 990 and to hav e prof itabl e years after
that.
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�GENCY FUN�
The Deferred Compensation Agency Fund accounts for the I.C.M.A.
Retirement Corporation plan with a market share value totaling
$1,602,255 for City employee plan members at year end.
DEBT ADMINISTRATION
At December 31, 1989, the City had seven debt issues outstanding.
These issues included $1,130,000 of general obligation bonds,
$5,985,000 of tax increment debt with government commitment, $970,000
of special assessment debt with a contingent 1 iabil ity and $135 ,000
of revenue bonds. The City has an A-1 rating from Moody's Investors
Service. Under current state statutes, general obligation bonded debt
issuances are subject to a legal limitation based on 2.0 percent of
total estimated value. As of December 31, 1989, the general
obl igation bonded debt of $1 ,130,000 wa s wel l bel ow the 1 egal 1 imit of
$18,346 and debt per capita equalled $25.72. No bonds were issued
during the year.
CASH MANAGEMENT
The Finance Department keeps abreast of current trends and procedures
for cash management and forecasting so as to insure efficient and
profitable use of the City's cash resources.
Cash is invested only in investments authorized by Minnesota Statutes
Chapter 475. The yield on investments ranged from a high of 12.0
percent to a low of 4.25 percent. Interest earned during 1989
amounted to $2,256,787 compared to $2,001,478 during 19$$ The City
has a written inv estment pol icy.
All deposits were either insured by federal depository insurances 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 propor-
tion 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.
RISK MANAGEM�'
The City insures all significant risk. A schedule of such insurance
is included in the Statistical Section.
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IND�PENDENT �UDIT
The City Charter and State Statutes require the Council to provide for
an audit of the financial transactions of the City. Deloitte and
Touche has been retained for that purpose and their unqualified
opinion has been included in this report.
CERTIFICA.,� ACHIFVEMENT
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, 1988.
In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a governmental unit must publish an easily read-
able 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 eligiblity for another certificate.
ACKNOWL�DGEMENTS
The preparation of this report on a timely basis could not be accom-
pl ished without the efficient and dedicated serv ices of the entire
staff of the Department of Finance. We would like to express our
appreciation to all members of the Department, with special recogni-
tion to Tim Johnson, Accountant, and Kelly Gooden, Secretary. We would
also like to thank the Mayor, 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,
Q�W•
Paul W. Holmlund
Director of Finance
R N �.Q,,�,
Charles R. Hansen
Assistant Director of Finance
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Certif icate of
Achlevement
f or Excellence
in Financial
1
Aeporting
Presented to
City of Brooklyn Center,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1988
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 (CAFR's) achieve the highest
standards in government accounting
and financial reporting.
4��p
UIUTED STRTES\ y
w RNO N President
f CRNRDA o
CORPORATION I n
S�XI.�,�
CNIC�60
��r�%���
Executtve Director
1
Deloitte
Touche
900 Pillsbury Center Telecopy: (612) 375-5418
Minneapolis, MN 55402-1483
Telephone: (612) 333-2301
INDEPENDENT AT1nITORS' REPORT
The Honorable Mayor and Members
of the City Council of the
City of Brooklyn Center, Minnesota
We have audited the accompanying general purpose financial statements
and the combining and individual fund and account group financial
statements of the City of Brooklyn Center, Minnesota as of December
31, 1989, and for the year then ended, listed in Section II of the
foregoing table of contents. These financial statements and the
supplemental schedules discussed below are the responsibility of the
City's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the general purpose financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, such general purpose financial statements present
fairly, in all material respects, the financial position of the City
of Brooklyn Center, Minnesota at December 31, 1989 and the results of
its operations and the changes in financial position of its
proprietary fund types for the year then ended, in conformity with
generally accepted accounting principles. Also, in our opinion, such
combining and individual fund and account group financial statements
present fairly, in all material respects, the financial position of
each of the individual funds and account groups of the City of
Brooklyn Center, Minnesota at December 31, 1989, and the results of
operations of such funds and the changes in financial position of
individual proprietary funds for the year then ended in conformity
with generally accepted accounting principles.
-14-
Our audit also comprehended the accompanying financial information
listed as schedules in Section II of the foregoing table of contents.
In our opinion, such additional information, when considered in
relation to the general purpose financial statements, presents fairly,
in all material respects, the information shown therein.
As discussed in Note 17 to the financial statements, in 1989 the City
changed its method of accounting for accrued vacation and sick leave.
April 20, 1990
-15-
City of Brooklyn Center, Minnesota
GENERAL PURPOS� FINANCIAL �TATEMENTS
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.
-16-
City of Brooklyn Center EXHIBIT 1
Ali Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued next page)
December3l, 1989
Proprietary Fiduciary Totals
Governmental Fund Types Fund Type Fund Type Account Groups (Memorandum Only)
Special Debt Capital General General Long- December3l,
General Revenue Service Projects Enterprise Aaency Fixed Assets Term Debt 1989 1988
ASSETS
Cash and investments (Note 2) $5,360,805 $2,071,808 53,544,687 $8,833,200 53,286,281 $21,098,581 523,941,724
Temporary improvement notes (Note 3) 879,224 320,961 537,409 1,107,954 1,192,020 4,037,588 859,610
Receivables:
Accounts 28,870 17,461 4,540 449,417 500,088 389,107
Delinquent Taxes (Note 11) 92,533 1,564 7,397 101,494 105,521
Special assessments:
Deferred 18,064 1,177,224 893,822 91,230 1,980,140 2,270,198
1 Delinquent 1,707 9,954 14,000 2,314 27,975 83,439
Due from other funds (Note 12) 90,381 50,000 140,381 278,367
Due hom other governments 20,906 90,381 2,049,983 230,685 2,391,935 1,905,975
Inventories and supplies (Note 1 G) 32,599 254,284 288,883 301,709
Prepaid expenses 102,250 102,250 112,713
Interfund advances (Note 12) 105,074 1,943,295 2,048,369 2,029,852
Resiricted investmente (Note 8) 4,125,265 4,125,285 4,127,020
Investments for deferred compensation
plan at market (Note 14) $1,602,255 1,802,255 1,339,828
Property, plant and equipment (Note 4) 19,220,668 519,530,328 38.750,998 33.199.464
Less accumulated depreciation (5,279,79� (5,279,795) (4,957,988)
Amount available in Debt Service Funds 54,081,862 4,081,@82 3,817,203
Amount to be provided for Generai Long-
Term Debt 4,003,338 4,003,338 5,444,758
Total Asaet6 56.519.811 $2.612.327 $5,276,871 512,898,574 523,674,599 51.602,255 s19,530.328 58.085,000 579.997.385 s75,028,290
ss=eeome =�eeee=v ec==a=zz szaaxsex eee=exeoa sa:�a===s =eooaa=a :sa=azxxs xsxzxaxx ex=esxasm axaxaaase
r �r r i �r
City of Brooktyn Center EXHIBIT 1
All Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued from prior page)
December3l, 1988
Proprietary Fiduciary Totals
Governmental Fund Types Fund Type Fund Types Account Groupe (Memorandum Only)
Special Debt Capital General General Long- December 31,
LIABILITIES AND FUND EQUITY General Revenue Service Pro' ts Enterprise Agency Fixed Aeaets Term Debt 1989 1988
Liabilities
Accounts payable $255.312 5198.117 $434 579.181 $198.881 5731,825 s831.980
Due to other funds (Note 12) 90,381 50,000 140,381 278,387
Accrued salaries and wages 175,028 20,810 195,838 244,273
Accrued vacation 8 eick pay (Notes 1J 1� 440,359 31,043 471,402 438,504
Temporary improvement notes (Note 3) 2,677,671 1,304,378 55,519 4,037,588 859,610
Deferred revenue 79,840 21,335 1,194,575 707,622 2,003,372 2,335,109
Interfund advances 700,282 1,348,087 2,048,389 2,029,852
Revenue bonds payable (Notes 5 8� 6) 135,000 135,000 180.000
General obligation bonde payable (Note 5) 51,130,000 1,130.000 1,440,000
Special assessment bonde payable (Note 5) 970,000 970,000 1,220,000
Tax ir.crement bonds payable (Note 5) 5,985,000 5,985,000 8,080,000
Deferred compensation funds held for
participants(Note14) $1,602,255 1,802.255 i,339,828
Total Liabilities 950,539 3,687,788 1,195,009 2,091,181 1,839,340 1,802,255 8,085,000 19,451,110 17,057,323
i Fund Eaui
Contributed capital (Note 8) 11,308,292 11,308,292 11,302,495
Invested in general fixed assets 519.530.328 19,530,328 14,214,185
Retained earnings:
Reserved:
Debt retirement (Note 6) 125,265 125,285 127,020
Special assessmente 93,544 93,544 98,940
Plant expansion (Note 6) 4,000,000 4,000,000 4,000,000
Unreserved 6.308,158 8,308,158 5,936,569
Fund Balances:
Reserved:
Inventories 32,599 32,599 38,973
Debt service 4,081,662 4,081,882 3,817,203
Unexpended appropriations 1,585,829 1,585,829 28,205
State approved projects 2,049,963 2,049,063 2,205,510
Interfund loens 105,074 1,993,295 2,098,386 2,029,852
Unreserved:
Designated:
Working capital 4,803,735 4,803,735
Unexpended appropriations 493,048 493,046
Undesignated 134,818 (1,075,459) 4,978,308 4,035,485 14,373,035
I
Total Fund Equity 5,589,072 (1,075,459) 4,081,B62 10,805,393 21,835,259 19,530,328 80,548,2b5 57,970,967
TOTAL LIABILITIES AND FUND EQUITY S8,5i9,811 $2,812,327 55,276,671 $12,698,574 $23,674,599 51.802,255 519,530,328 58,085,000 579,997,365 575,028,290
mssxsexsszaaxasa:a::ssa=xx=o m�xsax:: s::azasx =mesasvm :ssasasmx seexexaxe zaa=xssa ss:xaa:aa saxaes=a mxmxaessm axsaassas
(See notes to financial etatements) I,
City of Brooklyn Center IXHIBIT 2
All Governmental Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Year Ended December 31, 1989
Totals
Special Debt Capital (Memorandum Onl�
Revenues General Revenue Service Pro'ects 1989 1988
Taxes and special aasessments 53,325,101 5988,915 5887,752 5185.120 s5,348,888 55,341,190
Licenses and permits 385,247 385,247 329,783
Intergovernmental 3,628,255 203,942 87,463 772,703 4,892,363 4,110,373
Charges for services 1,124,167 73,258 1,197,425 1,289,212
Court fines 278,812 278,812 243,952
Investment earnings 380,418 285,729 283,673 708,480 1,818,300 1,447,630
Miscellaneous 84,938 49,730 354,481 4�,129 1,257,670
Total Revenues 9,148,938 1,581,574 1,238,888 2,000,764 13,968,164 13,999,810
Exnenditures
Current:
General government 1,793,495 4,685 1,798,180 1,773,281
Public safety 3,103,222 3,103,222 2,718,205
Public works 1,754,800 1,754,800 1,768,918
Community health services 81.043 81,043 89,117
Parks and recreation 1,814,391 77,604 1,891,995 1,785,648
Economic development 168,305 5,421,704 5,590,009 833,242
Non-departmental 347,315 65 347,380 353,888
Capital outlay 951,099 951,099 1,274,595
Debt service:
Principal retirement 635,000 635,000 840,000
Interest and fiecal charges 829,913 84,298 714,211 �0,275
Total F�cpenditures 9,082,571 5,503,993 1,264,913 1,035,482 18,868,939 11,885,187
Excess/DeficiencY(-1 Revenues Over Expenditures 84,367 (3,922,419) (28,025) 965,302 (2,898,77� 2,114,643
Other Financina Sources or Uses(-j
Operating transfers in 176,505 267,786 490,484 146,801 1,081,576 2,648,906
Operating transfers out (687,786) (258,790) (946,576) (2,558,906)
Total Other Financina Sources or Uses(-1 176,505 (420,000) 490,484 (111,989) 135,000 90,000
Excess or Deficiencv(-1 of Revenues and Other i
Sources Over Exaenditures and Other Uses Before
Cumulative Effect of Accountinn Chanae 280,872 (4,342,419) 484,459 853,313 (2,763,775) 2,204,843
Cumulative Effect of Accounting Change (Note 1� (341,961) (341,961)
Excess or Deficiencv(-1 of Revenues and Other
Sources Over Exaenditures and Other Uses
and Cumulative Effect of Accountina Chanae (81,089) (4,342,419) 464,459 853,313 (3,105,736) 2,204,643
Fund Balance Januarv 1 5,857,535 3,266,980 3,617,203 9,752,080 22,293,778 20,093,806
Decrease in reserve for inventories (7,374) (7,374) (4,871)
Fund Balance December 31 55,589,072 (51,075,459) 54,081,662 $10,805,393 519,180,868 $22,293,778
----��:s �a����=�:
(See notes to financial �atements)
-19-
Ci o( Brookl Center EXHIBIT 3
b Y�
deneral and Special Revenue Funds
i
CO
MBINED STATEMENT OF REVENUES P N IT R
EX E D U ES,
AND CHANC3ES IN FUND BALANCES BUD(�lET AND ACTUAL
Year Ended December 31, 1989
General Fund Speciel Revenue Funds
Actual Over Actuai Ove�
Under(-) Under(-)
Budaet Actual Buds�et Budget Actual Budaet
Revenues
Propertytaxes s3,333.�4 53,325,101 (58.493) 51.439,800 5988,915 (5450.885)
Licenses and permits 315,436 385,247 49,812
Intergovernmental 3,820,814 3,828,255 7,841 188,000 203,942 15,�42
Charge for services 1.251,805 1.124,187 (127 55.000 73,258 18,268
Court fines 280,011 278,812 18,801
Miscellaneous 350,878 425,358 74,480 219,025 315,456 98,434
Total Revenues 9,132,335 9,148,938 14,603 1,901,625 1,581,574 (320,051)
Exoenditures
Current:
General government 1,833,841 1,793,495 (40,146) 5,000 4,885 (315)
Public safety 3,123,915 3,103,222 (20,693)
I, Public works 1.783.298 1.754,800 (28.498)
Communityhealth services 74,841 81,043 6,402
Parksandrecreation 1,571,028 1,814,391 (56,63� 85,000 77,804 12,804
Economic development 175,000 168,305 (8,895) 9,102,914 5,421,704 (3,681,210)
Non-departmental 347,583 347,315 (288)
Total Expendituree 9,209,108 9,082,571 (146,53� 9,172,914 5,503,983 (3,688,921)
Excess or Deficiencvf-1 of Revenues Over Expenditures (78,771) 84,367 181,138 (7,271,288) (3,922,419) 3,348,870
Other Financina Sources or Uses(-1
Operating transfere in 176,207 176,505 298 251,000 267,786 16,786
Operating transfere out (671,000) (687,786) (16,786)
Total Other Financina Sources or Uses(-) 176,207 178,505 298 (420,000) (420,000) 0
Excess or Deficiencv(-1 of Revenues and Other
Sources Over Exoenditures and Other Uses Before
Cumulative Effect of Accountina Chanae 98,436 280,872 181,438 (7,�1,289) (4,342,419) 3,348,870
Cumulative Effect of Accounting Change (Note 1� (341,981) (341,961)
Excess or Deficiencvl-1 of Revenues and Other
Sources Over ExAenditures and Other Uses
and Cumulative Effect of Accountinq Chanae (242,525) (81,089) 161,436 (7,691,289) (4,342,419) 3,348,870
Fund Balance Januarv 1 5,657,535 5,657,535 3,266,960 3,266,960
Decrease in reserve for inventories (7,374) (7,374)
Fund Balance December 31 55,415,010 $5,589,072 $154,082 (54,424,329) (51,075,459) 53,348,870
easxaasaxa:as:ssxe3 xeex:aax eea:zzas =eeeeaa oexsxe amzsaxxa eeamxaasv
(See notes to financial statements)
-20-
I I
EXHIBIT 4
City of Brooklyn Center
Proprietary Fund Type
COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1989
Enterprise Funds
1989 1988
Oneratinp Revenues
Sales and user fees $4,815,914 $4,690,144
Cost of sales 1,871,551 2,000,854
Totai OQeratinq Revenues 2,944,363 2,689,290
O�eratinq Expenses
Personal services 675 710 638 121
Supplies 208,354 169,855
Other services 1,424,055 1,348,103
Insurance 34,091 50,767
Utilities 184,043 198,447
Rent 276,234 212,844
Depreciation 385,995 359,592
Total Operatinv Expenses 3,188,482 2,977,729
Oneratin4 Income or Loss(-) (244,119) (288,439) i
Non-Operatina Revenues or Expenses
Investment earnings 720,753 639,018
Special assessments 21,930 12,936
Intergovernmental revenue 90,431
Other revenue or expense(-) 4,289 9,143 i
Interest and fiscal agent fees (91,846) (86,731)
i
Non-Oneratinq Totals 745,557 574,366
Income Before Operatina Transfers 501,438 285,927
Operatinq Transfers Out� (135,000)
Net Income 366,438 195,927
Retained EarninQS Januarv 1 10,160,529 9,964,602
Retained Earnings December 31 $10,526,967 $10,160,529
(See notes to financial statements)
-21-
EXHIBIT 5
City of Brooklyn Cente�
Proprietary Fund Type
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
For the Year Ended December 31, 1989
Enterprise Funds
1989 1988
Sources of Financial Resources
Operations:
Net income for year $366,438 $195,927
Add: Items not requiring current outlay
depreciation 385,995 359,592
Total Resources Provided bv Operations 752,433 555,519
Contribution toward construction 5,797 1,786,409
Decrease in restricted assets 1,755 1,755
Total Sources 759,985 2,343,683
Use of Financial Resources
Purchase of properties 299,567 2,067,102
Payments to retire bonds 59,936 58,723
Total Uses 359,503 2,125,825
Net Increase or Decrease(-) in Working Capital $406,482 _$217,85g
Elements of Increase or Decrease(-1 in
Workin Ca ital
Cash and investments ($708,288) $373,358
Temporary improvement notes 945,051 130,617
Accounts receivable 72,244 15,525
Accrued revenue 32,453 6,142
Assessments receivable (3,396) (17,493)
Due from other governments 70,767 (67,425)
inventories (7,472) (8,002)
Prepaid expense (8,301) (2,745)
Accounts payable 92,541 (174,430)
Due to other funds (25,000) (25,000)
Accrued liabilities (3,385) (11,575)
Temporary improvement note (55,519)
Current portion of long-term debt (1,213) (1 114)
Net increase or Decrease(-) in Working Capital $400,482 $217,85g
(See notes to financial statements)
-22-
Citv �rook ,yn ,�enter
NOTES �'INANCIAL STATEMENTS r
YEAR ENDED DECEMBER 3„]� 1 q89
Note 1: Summarv S�$nificant �ecountin¢ Policies
A. Re�ortina 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 appoint-
ment of governin� body members, budget review, approval of
property tax levies, outstanding debt secured by City full
faith and credit or revenues and responsibility for funding
deficits.
As a result of applying the entity definition criteria of
the Governmental Accounting Standards Board, certain organ-
izations have been ineluded or excluded from the City�s fi-
nancial 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 citi-
zens. They provide this assistance through the admini-
stration of various programs. Inasmuch as their
governing board is appointed by the City Council, the
Council reviews and approves tax levies, the City pro-
vides 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 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 m embership of the or-
ganization. All Funding is conducted in accordance with
-23-
Note 1: Summarv Significant �lecountina Policies (continued)
A. Re,portin¢ Entitv (continued)
Minnesota statutes, whereby state aids flow to the associ-
ation. 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. Be-
II cause the association is able to fund its ro rams inde-
P
pendently of the City, it is excluded from the reporting
entity. State Aid insurance premium tax in the amount of
$85 015 and ad valorem tax s' n the am 2
e i ount of 3,621 were
receipted by the City and disbursed to the Association
during 1989.
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 Voca-
tional 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 issue their own financial re-
ports.
B. Fund Aceountin�
The accounts of the City are or�anized 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-
balancin� accounts that comprise its assets, liabili-
ties, fund equity, revenues, and expenditures, or ex-
penses, as appropriate. Government resources are allo-
cated to and accounted for in individual funds based
upon the purposes for which they are to be spent and
the means by whieh spending activities are controlled.
The various f unds are grouped, in the financial state-
ments in this report, into six 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 resourc-
es except those required to be accounted for in another fund.
-24-
Note 1: Summa.� Significant �lecountina Policies (continued)
B. Fund �ecountin¢ (continued)
Special Revenue Funds Special Revenue Funds are used to ac-
count for the proceeds of certain specific revenue sources
that are legally restricted to expenditures for specified pur-
poses.
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 re-
lated costs.
Capital Projects Funds Capital Projects Funds are used to
account for financial resources to be used for the acquisition
or construction of major capital facilities, other than those
financed by proprietary funds.
PROPRIETARY FUNDS
Enterprise Funds Enterprise Funds are used to account for
operations that are financed and operated in a manner similar
to private business enterprises where the intent is that
the costs (expenses, including depreciation of providing
goods or services to the general public on a continuing basis
be financed or recovered primarily through user charges.
FIDU CIARY FU NDS
Agency Funds Agency Funds are used to account for assets
held by the City as an agent for others.
C. �j.xed Assets Lon�-Term Liabilities
The aecounting 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 their
balance sheets. Their reported fund balance is consid-
ered a measure of "available spendable resources."
Governmental fund operating statements present in-
creases (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.
-25-
Note 1: Summarv Significa�t �ecountina �olicies (continued)
C. Fixed Assets �r Lon�-Term Liabilities (continued)
Fixed assets used in governmental fund type operations
are accounted for in the General Fixed Assets Account
Group, rather than in the governmental funds.
Effective January 1, 1987, public domain general fixed
assets consisting of certain improvements other than
buildings, including roads, curbs and gutters,
streets and sidewalks, drainage systems, and lighting
systems have been excluded from general fixed assets,
as such items are immovable and of value only to the
City. No depreciation has been provided on general
fixed assets.
All fixed assets are valued at historical cost or esti-
mated historical cost if historical cost is unav ail-
able. Donated fixed assets are valued at their esti-
mated market value as of the date donated.
The fixed assets of the proprietary funds are depreci-
ated 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 measure-
ment 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.
-26-
r
Note 1: Summar_v Signifieant �ecountine Policies (continued)
D. Basis �lecountin�t
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.
Major revenues that are susceptible to accrual include
taxes, special assessments, intergovernmental revenues,
charges for services, and investment earnings.
Major revenues that are not susceptible to accrual in-
clude licenses and permits, fees and miscellaneous
revenues; such revenues are recorded only as received
because they are not measurable until collected. In-
terest on special assessments is recognized as revenue
when due, net of delinquencies.
Expenditures are generally recognized under the modi-
fied aecrual 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 re-
cognized when they are earned, and expenses are recog-
nized when they are incurred. Unbilled Water and Sewer
fund utility service receivables are recorded at year
end.
E. Bude�ets Budgetary �ecountin�
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 ex-
penditures and the means of financing them.
2. The County mails individual property tax notices
showing the taxes which would result from the pro-
posed budgets of all taxing units to each property
owner by the second week of November.
-27-
Note 1: Summar,y �ignificant �ecountin� Polic�es (continued)
E. Bud�et� Budaetarv �ecountina (continued)
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.
r 6. Supplemental appropriations may be made during the
year by the City Council. These amounts must be
financed by funds from the contingency reserve set up
in the general fund or by additional revenues.
7. All budget amounts lapse at the end of the year to
the extent they have not been expended.
8. Formal bud etar inte ration is em lo ed as a
g Y
g P Y
management control device during the year f or the
General Fund and Special Revenue Funds. Formal budge-
tary integration is not employed for Debt Service Funds
because effective budgetary control is alternatively
achieved through general obligation bond indenture pro-
visions. Budgetary control for Capital Projects Funds
is accomplished through the use of project controls.
9. Budgets for the General and Special Revenue Funds
are adopted on a basis consistent with generally
accepted accounting principles.
10. Budgetary control is maintained at the expenditure
category level within each activity. Budgetary control
is maintained in compliance with City Council's di-
rections. City de partm ents are not allowed to exceed
budgetary expenditure totals for the department.
11. Bud e e
g t d amounts are as originally adopted, or as
amended by the City Council. Individual amendments
were not material in relation to the orginal appropri-
ations.
F. ��}rest[rJgnts
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
-2s-
Note 1: �mmarv g� �ignifieant Accountin¢ Policies (continued)
F. Investments (continued)
to the respective funds on the basis of applicable
cash balance participation by each fund. Temporary
cash investments are stated at cost which approximates
market.
G. Inventorv
Inventories are valued at cost, using the first-in/
first-out (FIFO) method. The costs of governmental
fund-type inventories are recorded as expenditures
when consumed rather than when purchased.
H. �'ota� Columns Combined Stateme�g
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 changes in financial position in con-
formity with generally accepted accounting principles.
Interfund eliminations have not been made in the
aggregation of this data.
I. Pro�ertv
Property tax 1 evies 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 pro erty.
P
Such taxes become a lien on January 1 and are record-
ed as receivables by the City at that date. Revenues
are accrued and recognized in the year collectible, net
of delinquencies.
Real property taxes may be paid by taxpayers in two
equal installments on May 15 and October 15. Personal
property taxes may be paid on February 28 and June 30.
The County provides tax settlements to cities and other
taxing districts four times a year, in February, April,
June and November.
Taxes which remain unpaid at December 31 are classified
as delinquent taxes receivable and are fully offset by
-29-
Note 1: Summarv .g.� S�g�ficant �ccountin� Policies (continued)
I. Prooertv (continued)
deferred revenue because they are not known to be
available to finance current expenditures. No allow-
ance for uncollectable 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, f urther indexed by the percentage in crease in
households or population, whichever is greater. Levies for
bonded indebtedness are not limited by this law.
J. Accumulated, Un�aid Vacation Sick ,�,y
The City pays employees severance pay upon termination
of employment based on accumulated sick leave and ac-
crued vacation. Such pay is accrued as an expense as
it is earned.
K. Reclassifications
Certain 1988 accounts have been reclassified to conform to
the 1989 presentation.
-30-
Note 2: Cash Investments
A. Denosits
In accordance with Minnesota Statutes, the City main-
tains 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 110X
of the deposits not covered by insuranee 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 securi-
ties pledged as collateral be held in safekeeping by
the City treasurer or in a financial institution
other than that f urnishing the collateral.
At December 31 1989 the carrying amount of the City's
demand deposits was $229,02g and the bank balance was
$1 Of the bank balance, $201,616 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 CateEOrv
(A) Insured or collateralized by securites 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) Uncollateral ized or collateral ized with
securities held by the pledging institution,
but not in the City's name
Categories B and C are not procedures that are author-
ized, by Minnesota Statutes; however, due to the effects
of cash flows, the City's deposits have temporarily
fallen into category B.
-31-
Note 2: Cas� �pvPSt�ents, (continued)
B. ��yestmP�
The City may also invest idle funds as authorized by
Minnesota Statutes, as follows:
(a) Direct obligations or obligations guaranteed by
the United State or its agencies.
(b) Shares of investment companies registered under
the Federal Investment Company Act of 1940 and
whose only investments are in securities de-
seribed 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 corpora-
tions or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days of 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, subd. 5.
-32-
Note 2: Cash and investments lcontinuedl
Balances at December 31, 1989
Credit Risk Category Carrying Market
Securities Type 2 3 Amount Value
U.S. Governments $3,459,797 $3,459,797 $3,464,419
Federal Agencies 19,294,813 19,294,813 19,268,300
Commercial Paper 1,720,833 1,720,833 1,719,010
$24,475,443 $0 $24,475,443 $24,451,729
Total Deposits (Note 2-A) 229,029
Temporary improvement notes 4,037,568
Change funds and deposits 3,860
Accrued interest on investments 513,514
Total Cash, Investments and Temp. Impr. Notes $29,259,414
Other Assets Investment Pools Deferred
Compensation Plan $1,602,255 $1,602,255
The City's investments are categorized above to give an indica-
tion of the level of risk assumed at year-end. Cate�ory 1 in-
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 ineludes uninsured and unregistered invest-
ments for which the securities are held by the broker's or
dealer'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 broker or dealer, or by
its trust department or agent but not in the City's name.
Note 3: Tem��y Imnrovement Notes
Temporary Improvement Notes represent interfund borrowings to
provide interim financing for construction projects or capital
outlay expenditures. Such loans bear interest at 12 percent
and totaled $4,037,568 and $859,610 at December 31, 1989 and
1988, respectively. For collection purposes, all of these
notes are considered current.
-33-
,I
Note 4: Fixed Assets
Changes in the General Fixed Assets account group during 1989 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1989 Additions Dis�osals 1989
Land $2,893,399 $2,893,399
Buildings 8 Improvements 4,255,714 $5,066,593 $6,531 9,315,776
Park Improvements 3,057,316 11,204 12,215 3,056,305
Furniture Fixtures 568,387 144,904 13,128 700,163
Departmental Equipment 3,439,349 319,740 194,404 3,564,685
TOTAL GENERAL FIXED
ASSETS $14,214,165 $5,542,441 $226,278 $19,530,328
i
Changes in the Liquor Fund Fixed Assets during 1989 were as foliows:
Balance Balance
Jan. 1, Dec. 31,
1989 Additions Disposals 1989
Land $107,405 $107,405
Land Improvements 4,228 4,228
Buildings Improvements 293,069 $885 292,184
Leasehold Improvements 9,638 27,834 9,638 27,834
Furniture 8� Fixtures 101,369 21,660 2,417 120,612
Departmental Equipment 9,128 9,128
TOTAL LIQUOR FUND ASSETS $524,837 _$49,494 $12,940 $561,391
-34-
Note 4: Fixed Assets (continued)
Changes in the Utility Fund Fixed Assets during 1989 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1989 Additions Dis�osals 1989
WATER DEPARTMENT
Land $23,938 $23,938
Land Improvements 2,600 2,600
Buildings Improvements 3,333,385 $54,521 3,387,906
Mains and Lines 7,128,843 8,850 7,i37,693
Machinery Equipment 107,806 26,285 $5,302 128,789
TOTAL WATER DEPARTMENT $10�596,572 $89,656 $5,302 $10,680,926
SEWER DEPARTMENT
Land $1,380 $2,008 $3,388
Buildings Improvements 980,919 84,545 $38,400 1,027,064
Mains and Lines 4,968,191 26,843 4,995,034
Machinery Equipment 107,806 26,285 5,302 128,789
TOTAL SEWER DEPARTMENT $6 $139,681 $43,702 $6-154,275
TOTAL UTILITY FUND $16,654,868 $229,337 $49,004 $16,835,201
Changes in the Golf Course Fixed Assets during 1989 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1989 Additions Dis�osals 1989
Land $1,390,402 $1,309 $1,391,711
Land Improvements 15,495 9,484 24,979
Buildings 8� Improvements 306,021 $2,700 303,321
Furniture Fixtures 16,304 995 17,299
Departmental Equipment 77,372 10,448 1,054 86,766
TOTAL GOLF COURSE ASSETS $1,805,594 $22,236 $3,754 $1,824,076
-35-
Note ebt
5 I�g�r_m p
The following is a summary of bond transactions of the City
for the year ended December 31, 1989:
General G.O. Tax Water
Obligation Increment Improvement Revenue
Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $1,440,000 $6,060,000 $1,220,000 $180,000 $8,900,000
Bondsissed
Bonds retired 310,000 75,000 250,000 45,000 680,000
Bonds payable
December 31 $1,130,000 $5,985,000 $970,000 $135,000 $8,220,000
General Obli�ation Bonds
General Obligation Bonds are recorded in the General
Long-Term Debt Account Group and are backed by the full
faith and credit of the City.
T� Increment Bonds
Tax Increment Bonds are recorded in the General Long-
Term Debt Account Group and are backed by the full faith
and credit of the City. They will be repaid from
incremental tax increases on the property within certain
development districts.
ImDroveme� Bonds
These bonds are recorded as a liability in the General
Long-Term Debt Account Group and are payable primarily
from special assessments levied and collected for local im-
provements. 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 re-
tire outstanding bonds.
-36-
Note 5: Lona-Term Debt (continued)
Long-term debt maturities (including interest of $4,641,808) are as follows:
General G.O. Tax Water
Obligation Increment Improvement Revenue
Bonds Bonds Bonds Bonds Totai
1990 257,175 591,838 266,979 50,265 1,166,257
1991 398,445 592,650 246,775 48,510 1,286,380
1992 334,810 645,488 168,260 46,755 1,195,313
1993 321,780 669,282 127,158 1,118,220
1994 694,685 111,912 806,597
1995 on 7,102,260 186,781 7,289,041
$1,312,210 $10,296,203 $1,107,865 $145,530 $12,861,808
Long-term debt obligations outstanding at year-end are summarized as follows:
Bond
Payment Issue Maturity Authorized
Rates Dates Date Date And Issued Retired Outstandinq
General Obligation Bonds
G.O. State-Aid Street Bonds 6,75 3-01 9 01 09 01 70 03 01 91 $1,050,000 $930,000 $120,000
1969 Building Impr Bonds 6.5 1-01 7-01 07-01-69 01-01-90 2,280,000 2,280,000 0
1980 Park Improvement Bonds 7.0-7.6 2-01 8-01 09-01-80 02-01-93 _1,500,000 490,000 1 �01_0,000
Total 830 000 3 700 000 $1 130 000
$4
Tax Increment Bonds
1983 G.O. Tax Incr Bonds 7.2 9.0 2 01 8 01 11 01 83 02 01 97 930 000 $195 000 $735 000
1985 G.O. Tax Incr Bonds 6.3-8.1 2-01 8-01 12-01-85 02-01-03 5,250,000 0 5,250,000
Total $6,180,000 $195,000 $5,985,000
Improvement Bonds
1970 Improvement Bonds 6.75 1-01 7-01 07-01-70 01-01-90 $2,250,000 $2,250,000 $0
1976 Improvement Bonds 5.2-5.4 2-01 8-01 11-01-76 02-01-91 980,000 860,000 120,000
1987 Refunding Bonds 4.0-5.5 2-01 8-01 04-01-87 02-01-97 1,200,000 350,000 850,000
Total $4,430,000 $3,460,000 $970,000
Water Revenue
Revenue Bonds of 1963 3.9 1-01 7-01 07-01-63 01-01-93 $1,000,000 $865,000 $135,000
On April 1, 1987, the City issued $1,200 in general obligation bonds with an average interest rate
of 5.06 percent to advance refund $1,825,000 of outstanding 1982 Improvement Bonds with an average
rate of 9.02 percent. The net proceeds of $1,170 plus an additional $867,926 of 1982 Improvement
Bonds sinking funds were used to purchase U.S. government securities. Those securities were deposited
in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1982
Improvement Bonds. As a result, the 1982 Improvement Bonds are considered to be defeased and the
liability for those bonds has been removed from the general long-term debt account group. At December 31,
1989, $1,425,000 of such bonds remain outstanding.
-37-
Note 6: Pub� Utilities
Public Utilities Revenue bonds were issued during 1963
to finance an addition to the water works system. These
bonds, together with related interest and service charges,
are payable solely from the operations of the Public
Utilities Fund and are not a general obligation of the
City. The resolution authorizing and directing the issuance
of these bonds contain covenants and restrictions enacted
f or the purpose of protecting the bondholders' interest.
Paragraph 8 of the resolution provides for the segregation
of assets and the appropriation of retained earnings for
debt retirem ent purposes and defines the manner of account-
ing for the activities of the Public Utilities Fund.
As required by Paragraph 10e of the issuing resolution,
an analysis of each account balance appears as follows:
Debt Reti�^ement Aceount
Accumulated amounts set aside to meet 1990
requirements for interest and principal:
Investments with accrued interest 50,265
Reserve account investments 75,000
Total Debt Retirement Account: 125,265
All bonds are subject to redemption (call) on any interest
payment date in inverse-num erical order at par and accrued
interest.
Temn_ora�y Investments
Investments and Retained Earnings in the amount of
$4,000,000 have been restricted for the possible future
expansion of Water and Sewer facil ities.
_38_
Note: 7 Seament Information
Enterprise Funds: Municipal Golf Public Recycling
Liquor Course Utitities Refuse
Fund Fund Fund Fund Total
Operating Revenues $2,414,126 $224,388 $2,092,818 $84,582 $4,815,914
Depreciation Expense 19,842 23,684 342,469 385,995
Operatinglncome(Loss) 111,154 34,601 (325,492) (64,382) (244,119)
Operating Transfers (out) (135,000) (135,000)
Net Income (Loss) (32,762) (18,674) 398,514 19,360 366,438
Current Capital Contributions 5,797 5,797
Property, Plant Equipment:
Additions 49,494 22,236 229,337 301,067
Deletions 12,940 3,754 49,004 65,698
Net Working Capital 176,444 (23,116) 5,019,584 19,360 5,192,272
Total Assets 702,429 1,817,172 21,052,547 102,451 23,674,599
Bonds and Other Long-Term
Liabilities Payable from
Operating Revenues 233,151 1,100,000 90,000 1,423,151
Total Equity $335,568 $659,081 $20,821,250 $19,360 $21,835,259
Note: S Contributed Caqital
Enterprise funds have received contributed capital from several sources.
The fixed assets acquired in this fashion have been depreciated along with
other fund assets, but the contributions under Fund Equity on the balance
sheet has not been reduced for the depreciation. During the year
contributions changed by the following amounts:
Public Golf
Utilities Course
SOURCE Fund Fund
Capital Improvements Fund s-- $5,797
Total Change $0 5,797
Contributions, January 1, 1989 10,616,086 686,409
Contributions, December 31, 1989 $10,616,086 $692,206
-39-
NOTE 9: PENSION �LANS�UBLIC �1 LOY�FS RF�IREMFN� ASSQCIATION (PERAZ
City employees participate in the pension plans administered
by the Public Employees Retirement Association (PERA). In
accordance with Government Accounting Standards Board State-
ment No. 5, the PERA plans are classified as a defined-
benefit multiple-employer cost-sharing plans.
Disclosures relating to this plan are as follows:
i A. P1an Aese�ntio�
A
All full-time and certain part-time employees of the City of
Brooklyn Center are covered by defined benefit pension plans
administered by the Publ ic 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 Coor-
dinated 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. All
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, 1989, was $3,167,806 and $1,482,279, re
spectively; the City's total payroll was $5,634,474.
PERA provides retirement benefits as well as disability bene-
fits to members, and benefits to survivors upon death of
eligible members. Benefits are established by State Statute,
and vest af ter 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 of the first 25 years and 2 percent for each remaining
year. 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.
-40-
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 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. Fundin¢ Status Pro¢ress
1. 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 progess made in accumulating
sufficient assets to pay benefits when due, and make compar-
isons among Public Employees Retirement Systems and among
employers. PERA does not make separate measurements of
assets and pension benefit obli ation for individual
g
empl oy ers.
The pension benefit obligations as of June 30, 1989,
are shown below:
PERF PEPFF
(in millions)
Total pension benefit obligation $3,714
Net assets available for benefits,
at market value (Cost for PERF
�2,935 PEPFF $638) $3,801 694
Unfunded (assets in excess of)
pension benefit obligation (87) $(112)
The measurement of the pension benefit obligation is
based on an actuarial valuation as of June 30, 1989 Net
assets available to pay pension benefits were valued as
of June 30, 1989.
-41-
2. Changes in Actuarial Methods and Benefit Provisions
A number of benefit improvements became effective during
fiscal year 1989 Some of the major improvements affect-
ing each fund include a reduction in the period required
for vesting from five years to three years; an option for
members hired before July 1, 1989, to have their annuity
i calculated under a level benefit accrual formula; the
interest rate credited on refunds of inember contributions
inereased from 5 percent to 6 percent; and the provision
for an automatic bounce back feature for all joint and
I� survivor annuity options. In the PEPFF, age/or service re-
quirements were reduced for eligibility for a normal retire-
ment annuity, and early retirement annuity, and for certain
disability and survivor benefits.
For each fund, there were changes in the actuarial assumptions
used in the annual actuarial valuation. Effective for all
funds beginning in fiscal year 1989 the preretirement in-
terest rate assumption was increased from 8 percent to 8.5
percent. Additionally for the PERF and the PEPFF, the
amortization target date has been ehanged to 2020. Shown be-
low are the effects on the pension benefit obligation of
these changes in plan benefits and actuarial assumptions.
Inerease (Decrease) in Pension
Benefit Obligation Due to:
(In Thousands)
PERF PEPFF
Changes in plan benefits $127,472 27,851
Changes in actuarial assumptions (84,15�4) (25 ,963)
Net increase in pension benefit
obliga tion 43,318 1,888
C. Contribut�ons Required Contribu�ions Made
Minnesota Statutes Chapter 353 sets the rate for empl oyer
and employee contributions. The City makes annual contribu-
tions to the pension plans equal to the amount required by
state statutes. According to Minnesota Statutes Chapter
356 .215, Subd. 4(g), the date of full funding required for
the PERF and the PEPFF is the year 2020. As part of the an-
nual actuarial valuation, PERA'S actuary determines the suffi-
ciency of the statutory contribution rates towards meeting
the required full funding deadline. The actuary compares
the actual contribution rate to a"required" contribution
rate. Current combined statutory contribution rates and
actuarially required contribution rates for the plans are
as follows:
_42_
Statutorv Rates Required
F�nloyee EmDloyer Rates
Public Employees
Retirement Fund:
Basic Plan and
Coordinated Plan 4.27� 4.67� 9.42�
Public Employees
Police Fire Fund 8.00� 12.00% 16.69�
Total contributions made by the City during fiscal year 1989
were:
Percentage of
Contribution Covered Payroll
Emnlovees E�plov� ��i Qvees Em,pl,ov�
Public Employees
Retirement Fund:
Basic Plan 16,61�+ 21,73$ 8.23� 10.73%
Coordinated
Plan 121,640 129,046 4.23°6 4.48�
Public Employees
Pol ice Fi re
Fund 118,636 177,874 8.00� 12.00�
TOTALS $256,890 $328,b58
The City's contribution for the year ended June 30, 1989 to
the Public Employees Retirement Fund represented approximate-
ly .18 percent of total contributions required of all partici-
pating entities. For Public Employees Police and Fire Fund,
contributions for the year ended June 30, 1989 represented
.8 percent of total contributions required of all partici-
pating entities.
D. Relatec� Partv �yestments
As of June 30, 1989 and for the fiscal year then ended, PERA
held no securities issued by the City or other related par-
ties.
E. �rend Information
Ten-year historical trend information is presented in PERA'S
Comprehensive Annual Financial Report for the year ended
June 30, 1989 This information is useful in assessing the
pension plan's accumulation of sufficient assets to pay pen-
sion benefits as they become due.
-43-
Note 10: �ension �lan �ooklvn Center
Fire De�artment Relief Association
A. Plan peseri�tion
The City contributes to the Brooklyn Center Fire Department
Relief Association ("Association"). In accordance with
Government Aceounting Standards Board Statement No. 5, it is
classified as a defined-benefit single-employer public employee
retirement system.
Volunteer firefighters of the City are members of the Associa-
tion 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 be-
tween 10 and 20 years of service. Members may choose to take a
lump sum settlement instead of the pension, equal to 3000 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
I I benefit of the association plan and passes through state aids
allocated to the plan, all in accordance with enabling state
statutes.
B. Fundin� Statu� �g�^ess
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 in-
creases, 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.
-44-
Note 10: Pension plan (continued)
B. Funding �tatus �,�gess (continued)
The pension benefit obligation was determined as part of an
actuarial valuation at December 31, 1988• Significant actu-
arial 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 obli�ation is performed
annually. On December 31 1988, the unfunded pension benefit
obligation was as follows:
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,3�8,3$$
Current Employees
Employer-financed vested 914,160
Employer-financed nonvested 122,698
Total pension benefit obligation 2,385,246
Net assets available for benefits
(at cost, market equals $2,063,232) 2,086,031
Unfunded pension benefit obligation $__299,215
No changes in actuarial assumption for benefit provisions that
would significantly affect the valuation of the pension benefit
obligation occurred during 1989
i
-45-
Note 10: Pension Plan (continued)
I C. Contributions Rec�ired Contribut�ons 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 unfunded
actuarial accrued liability is to be funded by December 31,
1999 The minimum tax levy obligation is the financial require-
ment for the year less anticipated state aids. Any additional
payments by the City shall be used to amortize the unfunded
i� liability of the relief association. The funding strategy for
normal cost and the unfunded actuarial accrued liability should
provide sufficient resources to pay plan benefits on a timely
ba si s.
Total contributions to the plan in 1989 amounted to $108 of
which $23,621 was levied by the City of Brooklyn Center and
$85,015 was from the State of Minnesota. The contributed
amounts were actuarially determined as described above and
were based on an actuarial valuation as of December 31, 1988•
The contributions represent funding for normal cost of $62,747
and the amortization of the unfunded actuarial accrued liability
of $42,674.
Significant actuarial assumptions used to compute pension con-
tribution requirements are substantially the same as those used
to determine the standardized measure of the pension obligation.
The computation of the pension contribution requirements for
1989 was based on the same actuarial assum ptions, benefit pro-
vision, actuarial funding method, and other significant factors
used to determine pension contribution requirements in previous
years.
D. .�ated Partv �.pvestme tn ,s
During 1989 and as of December 31, 1989, the association held
no securities issued by the City or other related parties.
-46-
Note 10: Pension Plan (continued)
E. �rend nformation
Trend inf orm ation 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 1989 Three-year
trend information for the Association is as follows:
1988 1987 1986
Available assets as a
percentage of benef it
obl igation 87� 99°� 90�
Unfunded pension benefit
obligation as a per-
centage of covered not* not* not*
payroll 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 organiza-
tion; thus, no covered payroll exists.
�'*The City's contribution was made in accordance with actuar-
ially determined requirements.
-47-
Note 11 �ndividual Fund Disclos
Deficit fund balances exist in the following funds:
Capital Projects Funds:
Special Assessment Construction:
Unreserved fund balance 1
This deficit is being funded through internal borrowing.
Bonds may be sold in the future if the balances of special
assessments receivable becomes large enough to justify an
issue.
Enterprise Funds:
Golf Co urse:
Unreserved retained earnings
This deficit is being funded through internal borrowing.
It is expected that future profits will cover the deficit.
Special Revenue Funds:
Economic Development Authority
Unreserved fund balance $_1,938,5�4
This deficit is being funded through internal borrowing.
The City may sell bonds when the construction of the
Earle Brown Heritage Center is complete in 1990 The bonds
would be repaid by tax increments, or the City may choose to
wait for the tax increments to repay the internal borrowing.
-48-
Note 12: Interfund �teceivables P�,vables
Individual interfund receivable and payable balances
at December 31, 1989, were as follows:
Due From/To Other Funds:
�teceivable fund �,vab],� fund Amount
Economic Development Comm. Dev.
Authority Block G rant 90,381
Capital Improvement Golf Course 50,000
$140,381
Interfund Loans From/To Other Funds:
Receivable fund Pavable fund Amount
General Fund Econ. Dev. Auth. 105,074
Municipal State Aid
for Construction Econ. Dev. Auth 593 ,06g
Special Assessment
Construction Fund Econ. Dev. Auth. 2,
Capital Improvement Liquor Fund 248,087
Capital Improvement Golf Course 1.,_a00.000.
$2,048,369
Interfund Loan Terms:
The loans payable by the Economic Development Authority 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 is paying interest at the rate of
5� and is repaying the loan principal over a period extending
through the year 2011.
Note 13: Contin�encies
There are several lawsuits pending in which the City is
involved. City Management estimates that the potential
claims against the City not covered by insurance resulting
from such litigation would not materially affeet the finan-
cial statements of the City.
-49-
Note 14: peferred Compensation 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 def erred com pensation 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 ri�hts
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 t 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 credi-
tors in the future.
Effective January 1, 1987, the City is reporting the ac-
tivity of this plan as an agency fund and carries its in-
vestment at market value.
Note 15: �'ost_Emolovme� Health Care Benefits
In addition to providing pension benefits, the government pro-
vides certain health care insurance benefits for city employees
who retire before age 65. Substantially all of the government's
employees may be eligible for those benefits from the time
they reach normal retirement age until they reach age 65 or
become eligible for medicare. The cost of retiree health care
insurance benefits is recognized as an expenditure as premiums
are paid. For 1989 those costs total $4,685. This benefit was
initiated on April 1, 1986 and will expire on December 31 1990
unless it is re-enacted by the City Council.
-50- I
Note 16: Fund Changes
The following funds were opened during 1989
Enterprise:
Recycling and Refuse
The following funds were closed during 1989
Debt Serv ice
Building and Improvement Bonds of 1969
Improvement Bonds of 1970
Note 17: Chan�e j�l #tYl� Met� ,g� �lccountin� �r �eerued Vacation
Sic1� Leave
Prior to 1989, in the Governmental Fund Types, the City account-
ed for vacation and sick leave by recognizing expenditures when
the benefits were paid. The liability for unpaid benefits was
accrued in the General Long-Term Debt Account Group. Proprie-
tary funds recorded their benefits on the full accrual basis of
accounting.
During 1989, the City changed its method of accounting f or em-
ployee benefits in the Governmental Fund Types by recognizing
all vacation and siek leave costs as expenditures when the
benefits are earned. The new method of accounting for accrued
employee benefits was adopted to recognize the full impact of
the liability when the benefits are earned, rather than when
paid.
The cumulative effect of the change on the General Fund was a
charge of $3�1 against the excess of revenues over expend-
itures and other financing sources (uses) in 1989
Note 18: 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, 1989 and 1988 was $28,604 and $27,507,
respectively. Future minimum rental payments under the lease
agreement are $24,640 in 1990 through 1994
-51-
City of Brooklyn Center, Minnesota
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 shal l prov ide 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 funetions,
including the current operations of general government, public safety,
publ ic works, heal th and wel fare, recreation, and non-departmental
expenditures.
This Fund utilizes the modified accrual basis of accounting. Revenues
are recognized in the accounting period in which they become available
and measurable. Expenditures are recognized in the accounting period
in which the related liability is incurred.
-52-
City of Brooklyn Center A-1
General Fund
BALANCE SHEET
December 31, 1989
Totals
1989 1988
ASSETS
Cash and investments $5,360,605 $5,843,038
Temporary improvement notes 879,224 183,190
Accounts receivable 28,670 36,719
Taxes receivable 92,533 96,438
Due from other governments 20,906 26,323
Inventory of supplies 32,599 39,973
Prepaid expense 2,162
Interfund loan-E.D.A. 105,074 72,834
TOTAL ASSETS $6,519,611 $6,300,677
LIABILITIES AND FUND BALANCE I
Liabilities
Accounts payable $255,312 $261,465
Accrued salaries payable 175,028 223,956
Accrued vacation and sick pay 440,359 68,392
Deferred revenue 79,840 89,329
Total Liabilities 950,539 643,142
Fund Balance
Reserved for:
Inventories 32,599 39,973
Interfund loans 105,074 72,834
Unreserved fund balance
Designated:
Working capital 4,803,735 r
Appropriated 1990 budget 493,046
Undesignated 134,618 5,544,728
Total Fund Balance 5,569,072 5,657,535
TOTAL LIABIL
ITIES AND FUND BALANCE $6,519,611 $6,300,677
(See notes to financial statements)
-53-
City of Brooklyn Center A-2
General Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL
Year Ended December 31, 1989
19B9
Actual Over
or Under(-) 1988
Budaet Actual Budaet Actual
Revenues
Property taxes 53,333,594 $3,325,101 ($8,493) $3,318,656
Licenses and permits 315,435 365,247 49,812 329,783
Intergovernmental 3,620,614 3,628,255 7,641 3,078,491
Charges for services 1,251,805 1,124,167 (127,638) 1,215,635
Court fines 260,011 278,812 18,801 243,952
Miscellaneous 350,876 425,356 74,480 363,918
Total Revenues 9,132,335 9,146,938 14,603 8,550,435
Ex�enditures
General government 1,833,641 1,793,495 (40,146) 1,768,607
Public safety 3,123,915 3,103,222 (20,693) 2,716,205
Public works 1,783,298 1,754,800 (28,498) 1,768,918
Community and health services 74,641 81,043 6,402 69,117
Parks and recreation 1,871,028 1,814,391 (56,637) 1,706,516
Economic Development 175,000 168,305 (6,695) 162,271
Non-Departmental ___347,583 347,315 310,475
Total Expenditures 9,209,106 9,062,571 (146,535) 8,502,109
Excess or Deficiencvl-) of
Revenues Over Expenditures (76,771) 84,367 161,138 48,326
Other Financina Sources
Operating transfers in 176,207 176,505 298 337,871
Total Other Financina
Sources 176,207 176,505 298 337,871
Excess or deficiencv(-) of Revenues
and Other Financina Sources Over
Ex�enditures Before Cumulative
Effect of Accountina Chanae 99,436 260,872 161,436 386,197
Cumulative Effect of Acct. Change (341,961) (341,961)
Excess or deficiencv(-) of Revenues
and Other FinancinQ Sources Over
Ex�enditures and Cumulative
Effect of Accountina Chanae (242,525) (81,089) 161,436 386,197
Fund Balance Januarv 1 5,657,535 5,657,535 5,247,769
Decrease in Reserve for Inventory (7,374) (7,374) (4,671)
Equity Transfers 28,240
Fund Balance December 31 $5,415,010 55,569,072 $154,062 55,657,535
(See notes to financial statements)
-54-
S-1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1989
1989
Actual Over
or Under(-) 1988
Budqet Actual Budqet Actual
Ad Valorem Taxes
Property taxes $3,134,594 $3,119,039 ($15,555) $3,139,274
Penalties and interest 15,000 28,758 13,758 8,522
Lodging tax 184,000 177,304 170,860
Total Ad Valorem Taxes 3,333,594 3,325,101 (8,493) 3,318,656
Licenses and Permits
Liquor and beer 124,100 128,575 4,475 122,953
Building permits 100,000 121,130 21,130 95,758
Mechanical permits 22,000 36,698 14,698 23,331
Sewer and water permits 3,000 1,483 (1,517) 1,423
Plumbing permits 8,000 10,006 2,006 8,327
Electrical permits 69 69 11,071
Garbage licenses 1,900 1,980 80 1,905
Taxicab licenses 1,450 1,230 (220) 1,175
Mechanical licenses 2,800 4,428 1,628 3,588
Food licenses 19,500 21,931 2,431 22,136
Service station licenses 1,665 1,760 95 1,375
Vehicle dealer licenses 900 900 0 925
Bowling licenses 700 460 (240) 735
Cigarette licenses 975 960 (15) 920
Swimming pool licenses 2,745 2,805 60 2,805
Sign permits 2,000 3,202 1,202 2,239
Rental dwelling permits 12,000 12,528 528 15,150
Lodging establishments 1,000 840 (160) 1,135
Amusement licenses 4,000 5,280 1,280 5,670
Dog licenses 5,200 5,658 458 5,389
Miscellaneous business license 1,500 3,324 1,824 1,773
Total Licenses and Permits 315,435 365,247 49,812 329,783
r
i
-55-
S-1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDU�E OF REVENUE AND OTHER FINANCiNG SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1989
1989
ActualOver
or Under(-) 1988
Budc�et Actual Budc�et Actual
interaovernmental
Federal grants:
Miscellaneous grants $5,000 $5,850 $850 $5,658
5,000 5,850 850 5,658
Total Federal Grants
State grants
Localgovernmentaid 2,661,084 2,657,957 (3,127) 2,080,644
Homestead credit aid 708,030 705,540 (2,490) 761,178
Police pension aid 146,000 139,342 (6,658) 125,953
Fireman pension aid 88,000 85,015 (2,985) 83,988
Police training 4,500 15,264 10,764 12,412
Miscellaneous grants 8,000 19,287 11,287 6,858
Total State Grants 3,615,614 3,622,405 6,791 3,071,033
Local grants:
Metro Council 1,800
Total Local Grants 1,800
Total Interqovernmental Rev. 3,620,614 3,628,255 7,641 3,078,491
Charaes for Services
Inter-Fund charges Admin.:
Public Utility Fund 199,000 196,810 (2,190) 185,337
Liquor Fund 53,000 51,276 (1,724) 45,914
E.D.A. Fund 49,831 50,038 207 46,241
Engineering and clerical fees 125,000 91,472 (33,528) 209,765
General government charges 36,500 39,269 2,769 27,238
Public safety charges 11,500 17,414 5,914 13,617
Recreation fees 776,974 677,888 (99,086) 687,523
Total Charqes for Services 1,251,805 1,124,167 ___(127,638) 1,215,635
Court Fines
Fines 260,011 278,812 18,801 243,952
Total Court Fines 260,011 278,812 18,801 243,952
-56-
S
-1
City of Brooklyn Center (Continued from
Generai Fund prior page)
SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1989
1989
Actual Over
or Under(-)
1988
Budqet Actual Budyet Actual
Miscellaneous
Rent $14,000 $12,000 ($2,000) $12,000
Interest on investments 295,000 360,418 65,418 326,248
Forfeited drug money 23,576 24,284 708 0
Other 18,300 28,654 10,354 25,670
Total Miscellaneous 350 876 425 356 74 480 363 918
Total Revenue 9,132,335 9,146,938 14,603 8,550,435
Other Financin4 Sources
Operating transfers in:
Liquor Fund 135,000 135,000 0 90,000
M.S.A. Fund 21,153 21,451 298 17,411
Capital Projects Fund 20,054 20,054 0 227,876
Community Development 0 2,584
Total Other Sources 176,207 176,505 298 337,871
Total Revenue and Other Sources $9,308,542 $9,323,443 $14,901 $8,888,306
(See notes to financial statements)
-57-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1989 next page)
1989
Actual Over
or Under(-) 1988
BudQet Actual Budaet Actual
General Government
Mayor and Council:
Personal services $23,707 $17,041 (56,666) $18,412
Services and other charges 80,145 72,074 (8,071) 82,275
Total Mavor and Council 103,852 89,115 (14,737) 100,687
Charter Commission:
Services and other charges 1,500 (666) 597
Total Charter Commission 1,500 834 (666) 597
Administrative Office:
Personal services 311,220 312,423 1,203 293,748
Services and other charges 38,663 32,676 (5,987) 18,216
Capital outlay _____5,018 (647)
Total Administrative Office 355,548 350,117 (5,431) 314,370
Elections and Voter Registration:
Personal services 22,743 17,746 (4,997) 30,168
Supplies 0 0 0 1,407
Services and other charges 325 134 (191) 3,230
Capital outlay 0 0 0 (7,382)
Total Elections 23,068 17,880 (5,188) 27,423
Assessor's Office:
Personal services 152,407 153,489 1,082 150,881
Supplies 2,745 1,250 (1,495) 525
Services and other charges 5,534 4,221 (1,313) 4,841
Capital outlay 600 603 3
Total Assessor's Office 161,286 159,563 (1,723) 156,247
Finance:
Personal services 301,220 302,147 927 269,479
Supplies 2,300 2,055 (245) 2,158
Services and other charges 3,050 1,716 (1,334) 1,898
Capital outlay
Total Finance 307,670 307,010 (660) 274,930
Independent Audit:
Services and other charges 14,500 14,500 0 14,500
Total Inde�endent Audit 0 14,500
-58-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1989 next page)
1989
Actual Over
or Under(-) 1988
Budaet Actual Budaet Actual
General Government (continued)
Legal:
Services and other charges 5251,815 $250,175 (51,640) $184,301
Total LeQal 251,815 250,175 (1,640) 184,301
Government Buildings:
Personal services 173,841 171,815 (2,026) 169,656
Supplies 17,675 26,405 8,730 19,960
Services and other charges 147,244 165,751 18,507 177,812
Capital outlay 223,216
Total Government Buildinas 450,822 444,005 (6,817) 590,644
Data ProCessing:
Supplies 4,500 4,353 (147) 2,910
Services and other charges 92,000 100,795 8,795 83,185
Capital outlay 67,080 55,148 (11,932) 18,813
Total Data Processina 163,580 160,296 (3,284) 104,908
Total General Government 1,833,641 1,793,495 (40,146) 1,768,607
Public Safetv
Police Protection:
Personal services 2,096,191 2,096,542 351 1,849,558
Supplies 28,878 28,717 (161) 31,409
Services and other charges 189,324 195,987 6,663 166,985
Capital outlay 97,218 90,916 (6,302)
Total Police Protection 2,411,611 2,412,162 551 2,123,988
Fire Protection:
Personal services 247,442 246,510 (932) 240,081
Supplies 18,640 17,636 (1,004) 16,403
Services and other charges 38,054 35,126 (2,928) 27,984
Capital outlay 40,748 38,307 (2,441) 12,877
Total Fire Protection 344,884 337,579 (7,305) 297,345
Protective Inspection:
Personal services 259,384 250,818 (8,566) 210,926
Supplies 1,200 1,255 55 1,122
Services and other charges 23,500 25,651 2,151 16,021
Capital outlay 5,570 3,572 (1,998) 738
Total Protective InsDection 289,654 281,296 (8,358) 228,807
-59-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1989 next page)
1989
Actual Over
or Under(-) 1968
P
ublic Safetv
continued) Budaet Actual Bud et A
a ctual
Emergency Preparedness:
Personal services $49,624 547,150 ($2,474) $45,727
Supplies 750 625 (125) 285
Services and other charges 8,628 6,283 (2,345) 4,467
Capital outlay (111)
Total Emer�encv Prenaredness 63,027 57,972 (5,055) 53,338
Animal Control:
Personal services 7,114 8,759 1,645 6,838
Supplies 500 357 (143) 269
Services and other charqes 7,125 (2,028)
Total Animal Control 14,739 14,213 (526) 12,727
Total Public Safetv 3,123,915 3,103,222 (20,693) 2,716,205
Public Works
Engineering Department:
Personal services 386,686 377,885 (8,801) 365,006
Supplies 5,400 2,790 (2,610) 3,718
Services and other charges 10,290 12,155 1,865 13,893
Capital outlay 7,600 9,036 1,436 9,894
Total En�ineerina 409,976 401,866 (8,110) 392,511
Street Department:
Personal services 471,258 470,373 (885) 452,257
Supplies 111,400 111,349 (51) 97,651
Services and other charges 159,375 159,068 (307) 155,487
Capital outlay 60,500 53,330 (7,170) 149,350
Total Street 802,533 ____(8,413) 854,745
Maintenance Shop:
Personal services 137,172 137,281 109 132,730
Supplies 181,000 177,119 (3,881) 165,115
Services and other charges 69,750 70,761 1,011 71,292
Capital outlay 29,967 28,955 (1,012) 895
�il
Total Maintenance Shop 417,889 414,116 (3,773) 370,032
Traffic Signals and Lights:
Services and other charges 152,900 144,698 (8,202) 151,630
Total Traffic Sianals 152,900 ___144,698 (8,202)
Total Public Works 1,783,298 1,754,800 (28,498) 1,768,918
-60-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1989 next page)
1989
Actual Over
or Under(-) 1988
Budaet Actual Budaet Actual
Communitv Health Services
Health Inspection:
Service and other charges $74,641 581,043 56,402 569,117
Total Health Inspection 74,641 81,043 6,402 69,117
Total Communitv Health 74,641 81,043 6,402 69,117
Parks and Recreation
Administration:
Personal services 235,393 227,681 (7,712) 204,138
Supplies 6,200 8,609 2,409 6,923
v' h r h r 4 200 32 236 (1 964) 32,335
Ser ices and ot e c a es 3,
9
Capital outlay 3,185 7,943 4,758 6,659
Total Administration 278,978 276,469 (2,509) 250,055
Adult Programs:
Personal services 59,847 80,689 20,842 69,895
Supplies 46,550 60,108 13,558 56,318
Services and other charges 209,298 162,026 (47,272) 156,697
Capital outlay _______640
Total Adult Proarams 316,370 303,463 (12,907) 283,017
Teen Programs:
Personal services 7 225 6,977 (248) 7,414
Su lies 1,350 1,342 (8) 480
PA
Services and other charges 2,900 3,114 214 2,521
Capital outlay 725 695 (30) 650
Total Teen Proarams 12,200 11,065
Children's Programs:
Personal services 55,570 48,944 (6,626) 49,519
Supplies 10,371 10,099 (272) 8,730
Services and other char es 14 050 8 089 (5,961) 8,542
J
Capital outlay 6,000 0 (6,000) 0
Total Children's Proarams 85,991 67,132 t18,859) 66,791
General Programs:
Personal services 29,260 29,489 229 31,086
Supplies 3,730 10,203 6,473 1,879
Services and other charges 54,624 38,233 (16,391) 43,667
Capital outlay
Total General Proarams 88,014 78,289 (9,725) 76,893
-61-
S-2
City of Brooklyn Center (Continued from
General Fund prior page)
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS)
For the Year Ended December 31, 1989
1989
Actual Over
or Under(-) 1988
Budaet Actual Budaet Actual
Parks and Recreation (continued)
Community Center:
Personal services $263,952 $258,464 (55,488) $280,331
Supplies 46,350 49,851 3,501 45,939
Services and other charges 130,485 131,421 936 135,877
Capital outlay 86,670 78,936 (7,734) 35,596
Total Communitv Center 527,457 518,672 (8,785) 497,743
Park Maintenance:
Personal services 330,503 322,013 (8,490} 302,400
Supplies 63,100 65,905 2,805 78,156
Services and other charges 101,300 117,379 16,079 87,820
Capital outlay 67,115 52,941
Total Maintenance 562,018 558,238 (3,780) 520,952
Total Parks and Recreation 1,871,028 1,814,391 (56,637) 1,706,516
Economic Develonment
Convention Bureau:
Services and other charges 175,000 168,305 (6,695) 162,271
Total Economic Development 175,000 168,305 (6,695) 162,271
Non-DeAartmental
Expenditures not Charged to
Departments:
Personal services 101,351 160,689 59,338 161,274
Supplies 19,000 21,921 2,921 16,404
Services and other charges 219,657 157,375 (62,282) 131,242
Capital outlay 7,575 7,330 (245) 1,555
Total Non-Denartmental 347,583 347,315 (268) 310,475
Total Expenditures $9,209,106 $9,062,571 ($146,535) $8,502,109
(See notes to financial statements)
-62-
City of Brooklyn Center, Minnesota
S�ECIAL REVENUE FUNDS
The Special Rev enue Funds are establ ished to account for revenues
derived from taxes and/or other specific revenue sources. These
resources are usually restricted by statute, City Charter or ordinance
to finance specific City funetions 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 account-
ing period in which the related liability is incurred.
E�S2�].4�1� ��Yg.�4�ID.��1� ����14r��Y �1�115� T h i s F u n d w a s e s t a b 1 i s h e d t o
account for the Economic Development Authority (EDA) 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. It
collects tax increments, which are funding the construction of the
Earle Brown Heritage Center. This complex will operate as a conven-
tion center, beginning in 1990 The E.D.A. al so does redevel opment
and housing projects, funded by transfers from the C.D.B.G. and H.R.A.
funds.
Housin� Redeyg�onment Fund (H.R.A.): This fund has the authority
to levy an ad valorem property tax for the purpose of conducting
housing and redevelopment projects. These projects are now done in
the E.D.A. Fund and all tax proceeds are transferred to that fund.
���1.1� E1�.�14Y�g� ����r�.���� E��� T h i s Fu n d w a s o r i g i na 1 1 y
established to account for the central collection of employer and
employees' share to pay employee pension contributions under various
pension programs. Pension contributions are now processed through
each indiv idual Fund. This fund now prov ides certain heal th care
insurance benefits for City employees who retire before age 65.
Diseased Tree Remoy�� Fund; This Fund was establ ished 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.
Comm�nitv �gye�o�ment B�,� Grant Fund; The Fund was establ ished 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 projeet costs
takes place.
-63-
City of Brooklyn Center B-1
Speciai Revenue Funds
COMBINING BALANCE SHEET
Year Ended December 31, 1989
Economic Public Diseased Community
Development Employees Tree Development
Authoritv Retirement Removal Block Grant 1989 1988
ASSETS
Casfi and investments $1,335,378 $714,163 $7,585 $14,682 $2,071,808 $3,636,404
Temporary improvement notes 203,586 117,375 320,961 112,162
Accounts receivable 8,181 9,280 17,461 3,128
Delinquent taxes 1,564 1,564 1,560
Deferred special assessments 18,064 18,064 16,002
Delinquent special assessments 1,707 1,707 2,147
Due from other funds 90,381 90,381 253,367
Due from other governments 90,381 90,381 253,367
TOTAL ASSETS $1,639,090 $831,538 $36,636 $105,063 $2,612,327 $4,278,137
i
rn
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $198,117 $198,117 $70,059
Due to other funds $90,381 90,381 253,367
Temporary Improvement Notes 2,677,671 2,677,671
Deferred revenue 1,564 $19,771 21,335 19,709
Advances from other funds 700,282 700,282 668,042
Total Liabilities 3,577,634 19,771 90,381 3,687,786 1,011,177
Fund Balances
Unreserved (1,938,544) $831,538 16,865 14,682 (1,075,459) 3,266,960
Total Fund Balances (1,938,544) 831,538 16,865 14,682 (1,075,459) 3,266,960
TOTAL LIABILITIES AND FUND BALANCES $1,639,090 $831,538 $36,636 $105,063 $2,612,327 $4,278,137
(See notes to financial statements)
Gty ot B�ookyn Csmsr �p
Spscial Fievsnus Funds (Continued neM page)
COMBININO STATEMENT OF REVENUES, D(PENDITURE3, AND CMANOE3 IN FUND BALANCES BUDOEf AND ACTUAL
Year Endsd Decembe� 31, 1989
Houe{ng and Public Employeee
Ecenomic Devebpmsnt Authaity Rsdevsbpment Authwity Rsttremsnt
Ove� Ovsr Over
Unde�(-) Under(-) Under(-)
Revenues Budget Actual Budget Budflet Actuai Budflet BudOet Actual Budgst
Property taxes 51,378,800 5925,071 (S4b1,629) S�i S8:f,844 5844
Intergovernmenhl:
Federal grante
sute grants te,00o u,es7 (1�343)
Totallntemovernmental 18 ,00o u,ss� �i,saa�
Charges tor services:
Feee
Adminfstrative
Total Charaes tor Servfces
Miscellaneous:
Investmenteaznings 110,000 197,728 87,728 a65,000 566,801 51,801�
Other 32,726 39,108 8,383
Total Miscellaneoue 142,725 236,838 94,111 86,000 86,801 1,801
TotalRevenues t,b19,325 1,181,907 (357,418) 79,000 78,601 (499) 86,000 88,801 1,801
Exoenditures
Personal services 6,000 4,685 (31�
Services and otherchargee 9,t67,914 6,421,704 (3,746,210)
Total Exoenditures 9,167,9/4 5,421,704 (3,746,210) 5,000 4,88fi (31b)
Excess or Defidt(-1 of Revenuea Over E�menditures (7,848,b89) (4,259,79n 3,388,792 79,000 78,501 (499) 80,000 62,116 2,116
Other Financina Sources or Uses(-)
Operating tranafers in 251,000 267,786 16,788
Operating transfers out �azo,000� �azo,000� o �re,000� pa,soi� ass
Total Other Financina 3ources or Usee(-) (189,000) (152,214) 18,786 (19,000) (78,501) 499
Excess w Deficft(-1 of Revenues and 3ources
Over Exoenditures and Other Uses (7,817,589) (4,412,011) 3,40b,678
80,000 62,118 2,118
Fund Balances Januarv 1 2,4�3,467 2,473,487 0 789,422 769,472 0
EauiN Transfere Out
Fund Balances December3l ($5,344,172) ($1,9;i8,544) $3,405,578 $0 $0 SO $82g,422 $831,538 52,118
����������"���e"':
(See notes to financial statements)
-65-
I�
i
Clry ot &ookyn Gnt�r B-2
Specfal Rsvenw Funds (Continusd from prior pape)
COMBININQ 3TATEMENT OF f�VENUE3, IXPENDITURE3, AND CHANOES IN FUND BAIANCEB BUDfiET AND ACTUAL
Ysar Ended Dscsmbe� 31, 1889
Community Devslopment
Dtae�ed Tree Rsmoval Blxk Orant Fund Totals
Over Over Over
Unde�(-) undeK-) issa ieea Under( fsea
Budoet Actual Budqst Budflet Actual Bud9et Bud et Actual Budcet Actual
Revenues
Propery taxes 51,439,800 5988,915 (5460,88� $988,837
Intergovernmental:
Federalgrants 5172,000 5189,28b 517,28b 172,000 iB9,286 17,28b 312,774
State grants �e,000 u,ss� �i,aaa) ia,ss�
Totallnteraovernmental 172,00p tgg,28b 17,285 188,000 203,942 16,942 327,431
Charges for servioee:
Fees Sb0,000 $87,794 517,794 60,000 87,794 17,794 48,877
Administrative 6,000 b,484 464 b,000 6,464 484 4,700
TotalCharaesfor Services 55,000 73,268 1g,258 56,000 73,268 18,258 63,577
Miscellaneoue:
Investme�tearnings 1,300 1,200 (100) 178,300 266,729 89,429 274,123
Other 10,000 10,672 822 42,726 49,730 7,005 42,898
Total Mi
scellaneous �p
000 10 82'2
872 1,300 1,200 (100) 219,02b 3/6,459 98,434 316,822
TotalRevenues� 65,000 83,880 18,880 173,300 190,486 17.18b 1,901,825 1,581,b74 (320,Ob1) 1.886,487
Expenditures
Peraonalservices 5,000 4,886 (315) 4,874
Services and othercharges 85,000 77,604 12,804 9,232,914 6,499,308 (3,733,808) 730,101
Total Exoenditures 65,000 77,804 12,804 9,237,914 6,503,983 (3,733,921) 734,776
Excess or Deficiencv of Revenuee Over Exoenditurea 0 6,278 8,278 173,300 190,48b 17,185 (7,336,289) (3,922,4t9) 3,413,870 961,892
Other Financina Sources or Uses(-1
Operating transfere in 2b1,000 287,786 18,786 310,190
Operating transfers out (172,000) (189,285) (17,285) (671,000) (887,78� (16,786) (1,339,�2)
Total Other Pinancina Sources or Uses(-) (172,000) (189,285) (17,285) (420,000) (420,000) 0 (1,029,502)
Excess a Deficiencv of Revenuea and Sources
Over E�mendituree and Other Usee 0 8,278 8,278 1,300 1,200 (100) (7,756,289) (4,342,419) 3,413,870 (77,810)
Fund Balances Januarv 1 10,589 10,589 0 13,482 13,482 0 3,288,980 3,286,980 0 3,477,448
EouIN Transfers Out ��32 8�6�
Fund Balances December 31 310,589 $18,885 56.278 574,782 $14,882 ($100) ($4,489,329) ($1,075,459) $3,473,870 $3,286,960
(See �otes to flnancial etatements)
-66-
City of Brooklyn Center, Minnesota
D� S�RVIC� FUNDS
The Debt Serv ice Funds were establ ished to account for the payment
(from taxes and other resources) of interest and principal on long-
term general obligation debt.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
av ail abl e and measurabl e. Expenditures are recogniz ed in the account-
ing period in which the related liability is incurred, except for
principal and interest which are recognized when due.
The City's Debt Service funds included in this section are:
Genera�, Qb�i�ation State Aid �eet Bonds Debt Seryice; This Fund was
established to account for the aceumulation of resources, including a
combination of state aid allotments and special assessments, for
payment of principal and interest on bonds issued in 1970 to finance a
comprehensive improvement and upgrading of those arterial streets
q ualifying as state aid routes.
14.�3 B� j�.].�,��.g T m,�� oy� m� n� b t S��y� c� F�,� d: T h i s Fu n d w a s
established to aceount for the accumulation of resources for payment
of principal and interest on general obl igation bonds authorized by
the electorate in 1968 to finance construction of the Civic Center,
Municipal Service Garage, East Fire Station, and the development of
existing parks.
1�r14 B4�1S1� 4� 14$Q .P��� �.�rY�.�� ���5� T h i s Fu n d w a s e s t a b 1 i s h e d t o
account for the accumulation of resourees for payment of principal and
interest on general obl igation bonds authorized by the el ectorate in
1980 to finance the improvement and eqipping of parks, parklands and
rel ated publ ic recreational facil ities. These improv ements include
neighborhood parks, Central Park, Palmer Nature Center, Shingle Creek
Trailway and the Arboretum.
��.�gr a�, Q���g�.��4� T.�.� I r� crg���� BQ r�� s Q� 1Q$� u�� T h i s Fu n d w a s
established to account for the accumulation of resources for payment
of principal and interest on general obligation bonds issued in 1g83
to finance purchase of land and installation of utilities for housing
for the elderly.
G.��gr a�, Q����;��.�4� T�� I n cr� mg�.� B��� s o� 148 F��� T h i s Fu n d w a s
established to account for the accumulation of resources for payment
of principal and interest on general obl igation bonds issued in 1985
to finance the purchase and redevelopment of the historic Earle Brown
Farm in Brooklyn Center.
-67-
Debt Service Funds(continued)
Im�ro�g�nent Bond Funds: These funds were establ ished to account for
the collection of special assessments for the payment of prineipal and
interest on general obl igation bonds. The bonds were sol d periodical-
ly to finance improvements deemed to benefit the properties against
which the assessments are 1 ev ied.
Refu�din� Bonds 128� Fund: This fund was established to account
for the collection of special assessments for the payment of prin-
cipal and interest on general obligation bonds. The bonds were sold
during 1987 to refund Improvement Bonds of 1982.
-68-
r
City of Brooklyn Center C-1
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 1989
I Park Tax Incre- Tax Incre- Improvement Refunding
Bonds ment Bonds ment Bonds Bonds of Bonds of Totals
of 1980 of 1983 of 1985 1976 1987 1989 1988
ASSETS
Cash and investments $274,843 $542,812 $402,467 $1,568,583 $755,982 $3,544,687 $3,515,446
Temporary improvement notes 89,213 66,147 257,801 124,248 537,409 102,744
Taxes receivable 4,001 3,396 7,397 7,523
Special assessments receivable:
Deferred 37,626 1,139,598 1,177,224 1,398,786
Delinquent 1,225 8,729 9,954 44,549
TOTAL ASSETS $278,844 $632,025 $468,614 $1,868,631 $2,028,557 $5,276,671 $5,069,048
a`
LIABILITIES AND FUND BALANCES
Liabilities
Accounts payable $125 $309 $434 $987
Deferred revenue $4,001 42,247 1,148,327 1,194,575 1,450,858 II
Total Liabilities 4,001 42,372 1,148,636 1,195,009 1,451,845
Fund Balance
Reserved 274,843 $632,025 $468,614 1,826,259 879,921 4,081,662 3,617,203
Total Fund Balances 274,843 632,025 468,614 1,826,259 879,921 4,081,662 3,617,203
TOTAL LIABIUTIES AND FUND BALANCES $278,844 $632,025 $468,614 $1,868,631 $2,028,557 $5,276,671 $5,069,048
(See notes to financial statements)
City of Brooklyn Center C
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Year Ended December 31, 1989
State Aid 1969 Bldg Park Tax Incre- Tax Incre-
Street Improvement Bonds ment Bonds ment Bonds
Bonds Bonds of 1980 of 1983 of 1985
Revenues
Property taxes $135,944 $165,908 $146,524
Special assessments
Intergovenmental revenue:
State grant: Homestead credit 30,790 37,679 18,994
Investment earnings 49,636 11,886 42,672 $25,859
Other
Total Revenues 216,370 215,473 208,190 25,859
Ex�enditures
Principal $60,000 150,000 100,000 75,000
Interest 10,125 9,750 78,920 63,163 410,725
Fiscal agent fees 359 175 358 515 542
Other
I
Total Exnenditures 70,484 159,925 179,278 138,678 411,267
Excess or Deficiencv of Revenues
Over Exoenditures (70,484) 56,445 36,195 69,512 (385,408)
Other Financina Sources or Uses(-)
Operating transfers in 70,484 420,000
Total Other Financin4 Sources
or Uses(-� 70,484 420,000
i
Excess or Deficiencv of Revenues and
Other Sources over Expenditures 0 56,445 36,195 69,512 34,592
Fund Balances January 1 0 512,760 238,648 562,513 434,022
Equity Transfers In/Out(-) 569 205
Fund Balances December 31 $0 $0 $274,843 $632,025 $468,614
(See notes to financial statements)
-70-
City of Brooklyn Center C^2
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Year Ended December 31, 1989
Improvement Improvement Refunding
Bonds of Bonds of Bonds of Totals
1970 1976 1987 1989 1988
Revenues
PrOpertytaxes $448,376 $455,127
Special assessments $12,071 $42,574 $364,731 419,376 423,545
Intergovenmental revenue:
State grant: Homestead credit 87,463 91,632
Investment earnings 61,117 40,455 52,048 283,673 241,284
Other 0 3,017
Total Revenues 73,188 83,029 416,779 1,238,888 1,214,605
Expenditures
Principal 20,000 60,000 170,000 635,000 640,000
Interest 1,350 7,980 44,055 626,068 682,561
Fiscal agent fees 359 223 1,120 3,651 3,133
Other 194 194 4,581
Total Exoenditures 21,903 68,203 215,175 1,264,913 1,330,275
Excess or Deficiencv of Revenues
Over Exqenditures 51,285 14,826 201,604 (26,025) (115,670)
Other Financina Sources or Uses(-)
Operating transfers in 490,484 506,099
Total Other Financinq Sources
or Uses(-� 490,484 506,099
Excess or Deficiencv of Revenues and
Other Sources over Exnenditures 51,285 14,826 201,604 464,459 390,429
Fund Balances Januarv 1 684,904 506,039 678,317 3,617,203 3,360,297
EquityTransfers in/Out(-) (736,189) 1,305,394 0 (133,523)
Fund Balances December 31 $0 $1,826,259 $879,921 $4,081,662 $3,617,203
(See notes to financial statements)
-71-
City of Brooklyn Center, Minnesota
CAPITAL p�OJECTS FUNDS
The Capital Projects Funds are established to account for all resourc-
es used for the construction or acquisition of capital facilities by
the City except those financed by Enterprise Funds.
This fund type util izes 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 account-
ing period in which the rel ated 1 iabil ity is incurred.
The City's Capital Projects Funds included in this section are:
Capita� Improyg�Pnts Fund: This Fund was establ ished in 1 968 to pro-
vide funds, and to account for the expenditure of such funds, for
major capital outlays including, but not be limited to, construction
or acquisition of major permanent facilities having a relatively long
life; and/or to reduce debt incurred for capital outlays. The
financing sourees of the Fund include ad valorem taxation, transfers
from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
�uniciDa�, Sta�g Canstruction Fund: This Fund was establ ished
to account for the state allotment of gasoline tax collections used
for transportation related construction projects.
�ecia], }�sseSsme� Construction Fund: This Fund was established to
account for the resources and expenditures required for the acquisi-
tion and construction of capital facilities or improvements financed
wholly or in part by special assessments levied against benefited
properties.
-72-
City of Brooklyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1989
Municipal Special
Capital State Aid Assessment Totals
Improvements for Construction
Fund Construction Fund 1989 1988
ASSETS
Cash and investments $3,489,741 $3,251,558 $91,901 $6,833,200 $6,952,267
Temporary improvement notes 573,550 534,404 1,107,954 214,545
Accounts receivable 4,540 4,540 4,540
Special assessments:
Deferred 2,901 690,721 693,622 761,811
Qe4inquent 2,242 11,758 14,000 13,402
Due from other funds 50,000 50,000 25,000
Due from other governments 2,049,963 2,049,963 1,466,367
Interfund loans:
Munici al li uor 248 087 248,087 261,810
P 4
Golf course 1,100,000 1,100,000 1,100,000
Economic development authoriry 593,069 2,139 595,208 595,208
TOTAL ASSETS $5,471,061 $6,428,994 $796,519 $12,696,574 $11,394,950
LIABIUTIES AND FUND BALANCE
Liabilities
Accounts payable $17,707 $14,437 $47,037 $79,181 $8,047
Temporary improvement notes 1,304,378 1,304,378 859,610
Deferred revenue 5,143 702,479 707,622 775,213
Total Liabilities 22,850 14,437 2,053,894 2,091,181 1,642,870
Fund Balances
Reserved:
Unexpended appropriations 324,307 1,261,522 1,585,829 28,205
State approved projects 2,049,963 2,049,963 2,205,510
Advances to other funds 1,398,087 593,069 2,139 1,993,295 1,957,018
Unreserved 3,725,817 2,510,003 (1,259,514) 4,976,306 5,561,347
Totai Fund Balances 5,448,211 6,414,557 (1,257,375) 10,605,393 9,752,080
TOTAL LIABILITIES AND FUND BALANCE $5,471,061 $6,428,994 $796,519 $12,696,574 $11,394,950
(See notes to financial statements)
-73-
City of Brooklyn Center D
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
Year Ended December 31, 1989
Municipal Special
Capital State Aid Assessment
Improvements for Construction Totals
Fund Construction Fund 1989 1988
Revenues
Special assessments $9,366 $155,754 $165,120 $155,225
Intergovernmental: State grants $772,703 772,703 612,819
Investment earnings 387,720 310,745 10,015 708,480 605,975
Reimbursement of prior year's
construction expenditures 0 1,100,000
Other 235,639 118,822 354,461 74,284
Total Revenues 632,725 1,083,448 284,591 2,000,764 2,548,303
Expenditures
Other services 84,363 84,363 43,413
Capital outlays 47,349 259,906 643,844 951,099 1,274,595
Total F�c�enditures 47,349 259,906 728,207 1,035,462 1,318,008
F�ccess or Deficiencv of Revenues
Over Exnenditures 585,376 823,542 (443,616) 965,302 1,230,295
Other Financinp Sources of Uses(-�
Operating transfers in 103,759 43,042 146,801 1,494,746
Operating transfers out (20,054) (134,97� (103,759) (258,790) (1,219,214)
Total Other Financinq Sources or Uses(-) (20,054) (31,218) (60,71 111,989 275,532
Excess or Deficiencv of Revenues and Other
Sources Over Exnenditures and Other Uses 565,322 792,324 (504,333) 853,313 1,505,827
Fund Balance Januarv 1 4,882,889 5,622,233 (753,042) 9,752,080 8,008,294
Epuitv Transfers In 237,959
Fund Balance December 31 $5�448-211 $6�414�557 ($1-257-375) $10 $9_752
(See notes to financial statements)
-74-
City of Brookiyn Center S-3
Capital improvements Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnina to December 31. 1989
Project Over(-) Under
1989 to Date Expended
�e of Pro'�ect Aqpropriations Exqenditures Exqenditures ADprOpriations
Centerbrook Improvements $46,900 $26,653 $36,884 $10,016
Replat I-94 property 33,000 7,163 26,227 6,773
Telephone System 96,828 13,533 13,533 83,295
Council Chambers Sound 8,169 8,169
Cable TV Improvements 226,069 226,069
Totals $410,966 $47,349 $76,644 $334,322
(See notes to financial statements)
i
r w�
r r r r
City of Brooklyn Center S
Municipal State Aid Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnina to December 31, 1989
Project Over(-) Under
1989 to Date Expended
Pr oiect Number Approp riation Exqenditures Exbenditures Approp riations
State of Minnesota repayment 80 $3,241 $3,241 $3,241 $0
Storm Sewer Highway 252 86-17 7,712 7,712 7,712 0
Street impr. 69th Ave 87-08 60,000 4,460 63,894 (3,894)
Camden Ave sidewalk 87-10 53,234 5,348 46,927 6,307
Shingle Creek Parkway 8� Cty Rd 10 87-23 9,065 2,812 2,812 6,253
Humbolt Ave sidewalks 88-17 3,963 3,968 3,968 (5)
North Lilac Dr Trailway 88-19 123,753 117,966 117,966 5,787
Signal at S.C.P. Freeway 88-25 7,250 4,833 5,215 2,035
Landscape Lakebreeze Ave 89-14 10,955 10,585 10,585 370
Brookdale Square turnlane 89-18 59,598 58,365 58,365 1,233
Humboldt Ave sidewalks 89-20 13,052 13,052 13,052 0 I
Xerxes Ave sidewalks 89-21 6,876 6,946 6,946 (70)
Freeway Blvd. Improvements 89-26 15,840 4,313 4,313 11,527
Unity Ave Culvert 89-29 15,000 11,367 11,367 3,633
Minnesota Standard Computer Workstation 4,916 4,938 4,938 (22)
Totals $394,455 $259,906 $361,301 $33,154
(See notes to financial statements)
City of Brooklyn Center S-5
Special Assessment Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beqinninq to December 31, 1989
Project Over(-) Under
Project 1989 to Date Expended
�e of Pro'�ect Number Approp riations Ex�enditures Expenditures A ro riations
I
Logan Ave reconstruction 88-04 $533,455 $91,221 $603,803 ($70,348)
France Ave reconstruction 88-05 293,666 55,184 335,397 (41,731)
Lakebreeze Ave reconstruction 88-06 194,143 66,999 253,722 (59,579)
50th Ave reconstruction 88-07 112,725 45,054 154,842 (42,117)
West River Road 66th to 73rd 88-18 140,200 62,092 62,151 78,049 �i
Brookdale Square Signal 88-24 77,877 37,349 38,282 39,595 I
FremonUGirard Alley 89-08 92,626 85,658 85,658 6,968
Girard/Humboldt Alley 89-15 38,889 34,335 34,335 4,554
Emerson/FreewayAlley 89-16 41,141 35,273 35,273 5,868
Lakeview Alley 89-17 8,880 11,203 11,203 (2,323)
Brookdale Square Entrance 89-19 119,544 119,476 119,476 68
Totals $1,653,146 $643,844 $1,734,142 ($80,996)
(See notes to financial statements)
r■� rs r w
City of Brooklyn Center, Minnesota
�NTERPRIS� FUNDS
The Enterprise Funds were established to account for the financing of
self-supporting activities of the City which render services on a user
charge basis to the general public.
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:
���ici�,� �iaug� �.i This Fund was established to account for the
operations of the City's three municipal off-sale liquor stores.
G��� Course Fund: This fund was established to account for operations
of Centerbrook Gol f Course, a 9 hol e, par 3 course owned by the City.
�i�]��c �J�,'�ities Fund: This Fund was established to account for the
production and distribution of water to customers and the collection
of sanitary sewage to be treated by the Metropolitan Waste Control
Commission.
�gcye.�in� and Refuse Fund: This fund was establ ished to account for
the operation of a state mandated recycling program. Expansion into
refuse collection will take place only when there is a clear advantage
to be a chi ev ed by i t.
-7s-
City of Brooklyn Center
Enterprise Funds
COMBINING BALANCE SHEET
December 31, 1989
Municipal Golf Public Recycling
Liquor Course Utilities Refuse Totals
Fund Fund Fund Fund 1989 1988
ASSETS
Current Assets
Cash and investments $53,202 $30,544 $3,202,535 $3,286,281 $3,994,569
Temporary improvement notes 1,192,020 1,192,020 246,969
Accounts receivable net 9 183,516 192,996 120,752
ACCruedrevenue 244,401 $12,020 256,421 223,968
Assessments receivable:
Deferred 91,230 91,230 93,599
Delinquent 2,314 2,314 3,341
Due from other governments 140,254 90,431 230,685 159,918
Inventories 243,577 4,431 6,256 254,264 261,736
Prepaid expenses 3,895 98,355 102,250 110,551
Total Current Assets 310,154 34,975 5,160,881 102,451 5,608,461 5,215,403
Restricted Assets
Temporary investments 4,000,000 4,000,000 4,000,000
Debt retirement investments 125,265 125 127,020
Total Restricted Assets 4-125,265 4-127,020
Fixed Assets
Mains and lines 12,132,727 12,132,727 12,097,034
Structures 292,184 303,321 4,414,970 5,010,475 4,839,472
Equipment 129,740 104,065 257,578 491,383 501,164
Land 107,405 1,391,711 27,326 1,526,442 1,516,598
Land improvements 4,228 24,979 2,600 31,807 21,393
Leasehold improvements 27,834 27,834 9,638
561,391 1,824,076 16,835,201 19,220,668 18,985,299
Less: Allowance for
depreciation 169,116 41,879 5,068,800 5,279,795 4,957,998
Total Fixed Assets 392,275 1,782,197 11,766,401 13,940,873 14,027,301
TOTALS $702,429 $1,817,172 $21,052,547 $102,451 $23,674,599 $23,369,724
(See notes to financial statements)
-79-
F_1
Municipal Golf Public Recycling
Liquor Course Utilities Refuse Totals
Fund Fund Fund Fund 1989 1988
LIABILITIES. CONTRIBUTIONS
AND RETAINED EARNINGS
Current Liabilities
Accounts payable $97,874 $5,071 $68,364 $27,572 $198,881 $291,422
Due to other funds 50,000 50,000 25,000
Accrued salaries payable 9,435 1,496 9,879 20,810 20,317
Accrued vacation and sick pay 11,465 1,524 18,054 31,043 28,151
Temporary improvement note 55,519 55,519
Current portion of long-term debt 14,936 45,000 59,936 58,723
Total Current Liabilities 133,710 58,091 141,297 83,091 416,189 423,613
Lona-Term Liabilities
Construction loan 233,151 1,100,000 1,333,151 1,348,087
Revenue bonds 90,000 90,000 135,000
Total Lona-term Liabilities 233,151 1,100,000 90,000 1,423,151 1,483,087
Fund E uit
Contributions 692,206 10,616,086 11,308,292 11,302,495
Retained earnings:
Reserved:
Debt retirement 125,265 125,265 127,020
Restricted assessments 93,544 93,544 96,940
Plant expansion 4,000,000 4,000,000 4,000,000
Unreserved 335,568 (33,125) 5,986,355 19,360 6,308,158 5,936,569
Total Retained Earninqs 335,568 (33,125) 10,205,164 19,360 10,526,967 10,160,529
Total Fund Eauitv 335,568 659,081 20,821,250 19,360 21,835,259 21,463,024
TOTALS $702,429 $1 $21 $102,451 $23�674 $23-369_724
(See notes to financial statements)
-80-
City of Brooklyn Center F
Enterprise Funds
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1989
Municipal Golf Public Recycling
Liquor Course Utilities Refuse Totals
Fund Fund Fund Fund 1989 1988
O�eratinp Revenues
Sales and user fees $2,414,126 $224,388 $2,092,818 $84,582 $4,815,914 $4,690,144
Cost of sales 1,844,619 26,932 1,871,551 2,000,854
Gross Mars�in 569,507 197,456 2,092,818 84,582 2,944,363 2,689,290
Joeratina�enses
Personal services 249,355 100,440 325,915 675,710 638,121
Supplies 10,525 17,450 110,581 69,798 208,354 169,855
Otherservices 99,712 9,660 1,235,517 79,166 1,424,055 1,348,103
Insurance 23,124 3,385 7,582 34,091 50,767
Utilities 27,191 8,236 148,616 184,043 198,447
Rent 28,604 247,630 276,234 212,844
Depreciation 19,842 23,684 342,469 385,995 359,592
Total Oneratinq Exoenses 458,353 162,855 2,418,310 148,964 3-188,482 2,977,729
Ooeratinq Income 111,154 34,601 (325,492) (64,382) (244,119) (288,439)
Nonooeratina Revenues or Exoenses(-�
Investment earnings 9,659 2,505 708,589 720,753 639,018
Special assessments 21,930 21,930 12,936
Intergovernmental revenue 90,431 90,431
Otherrevenue 3,152 470 667 4,289 9,143
Interest and fiscal agent fees (21,72� (56,250) (7,180) (6,689) (91,846) (86,731)
Nono�eratinq Totals (8,916) (53,275) 724,006 83,742 745,557 574,366
Income Before Ooeratinq
Transfers 102,238 (18,674) 398,514 19,360 501,438 285,927
O�eratina Transfers Outl-) (135,000) (135,000) (90,000)
Net Income (32,762) (18,674) 398,514 19,360 366,438 195,927
Retained Earninqs Januarv 1 368,330 (14,451) 9,806,650 0 10,160,529 9,964,602
Retained Earnings December 31 $335,568 ($33,125) $10,205,164 $19,360 $10,526,967 $10,160,529
===a=====-
(See notes to financial statements)
-81-
City of Brooklyn Center F
Enterprise Funds
COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION
For the Year Ended December 31, 1989
Municipal Golf Public Recycling
Liquor Course Utilitiss Refuse Totals
Fund Fund Fund Fund 1989 1988
Sources of Financial Resources
Operations:
Net income for year ($32,762) ($18,674) $398,514 $19,360 $366,438 $195,927
Add: Items not requiring current
outlay depreciation 19,842 23,684 342,469 385,995 359,592
Total Resources Provided
BY OD erations (12,920) 5,010 740,983 19,360 752,433 555,519
Contributions toward construction 5,797 5,797 1,786,409
Decrease in restricted assets 1-755 1�755 1,755
Total Sources (12,920) 10,807 742,738 19,360 759,985 2,343,683
Uses of Financial Resources
Purchase of properties 49,494 20,736 229,337 299,567 2,067,102
Debt retirement 14,936 45,000 59,936 58,723
Total Uses 64,430 20,736 274,337 0 359,503 2,125,825
Net Increase or Decrease(-)
In Working Capital ($77,350) ($9,929) $468,401 $19,360 $400,482 $217,858
Elements of Increase or Decrease(-1
in Workina Capital
Cash and investments ($105,376) $19,005 ($621,91� ($708,288) $373,358
Temporary improvement notes 945,051 945,051 130,617
Accounts receivable 3,788 68,456 72,244 15,525
Accrued revenue 20,433 $12,020 32,453 6,142
Assessments receivable (3,396) (3,396) (17,493)
�ue from other governments (19,664) 90,431 70,767 (67,425)
Inventories (2,655) (51 (4,300) (7,472) (8,002)
Prepaid expense (15,951) 7,650 (8,301) (2,745)
Accounts payable 45,999 (3,315) 77,429 (27,572) 92,541 (174,430)
Due to other funds (25,000) (25,000) (25,000)
1 Accrued liabilities (1,942) (102) (1,341) (3,385) (11,575)
Temporary improvement note (55,519) (55,519)
Current portion of long-term debt (1,213) (1,213) (1,114)
Net Increase or Decrease(-)
In Working Capital ($77,350) ($9,929) $468,401 $19,360 $400,482 $217,858
(See notes to financial statements)
-82-
F-4
City of Brooklyn Center
Municipal Liquor Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1989
Year Ended December 31.
1989 1988
Sales
Liquor $769,100 $806,608
Beer 1,268,903 1,344,281
Wine 316,883 364,220
Soft drinks 44,334 48,756
Other merchandise 14,906 19,729
Total Sales 2,414,126 2,583,594
Less: Cost of Sales 1 1,977,728
Gross Marain 569,507 605,866
Operatinc�Expenses
Personal services 249,355 246,975
Supplies 10,525 9,829
Other services 99,712 92,672
Insurance 23,124 35,758
Utilities 27,191 32,946
Rent 28,604 27,507
Depreciation 19,842 11,392
Total Expense 458,353 457,079
Oqeratinq Income 111,154 148,787
Non O�eratinq Revenue or Exaense(-)
Investment earnings 9,659 9,084
Otherrevenue 3,152 708
Interest and fiscal agent fees (21,727) (22,842)
Total Non Operatinq (8,916) (13,050)
Operatina Transfers to General Fund 135,000 90,000
Net Income (32,762) 45,737
Retained Earninas Januarv 1 368,330 322,593
Retained Earnings December 31 $335,568 $368,330
(See notes to financial statements)
-83-
F-5
City of Brooklyn Center
Golf Course Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1989
Year Ended December 31,
1989 1988
Sales
Green fees $170,260 $162,531
Rentals 8,283 7,688
Leagues 3,012 1,712
Golf lessons 4,673
Concessions 16,702 16,968
Merchandise 17,123 14,328
Pop machine 3,020 3,379
Miscellaneous 1,785 358
Total Sales 224,858 206,964
Less: Cost of Sales 26,932 23,126
Gross Marpin 197,926 183,838
O�eratinq Expenses
Personal services 100,440 81,217
Supplies 17,450 17,565
Other services 9,660 13,917
Insurance 3,385 3,953
Utilities 8,236 8,230
Depreciation 23,684 20,449
Total Expense 162,855 145,331
Operatina Income 35,071 38,507
Non Oneratina Revenue or Ex�ense(-1
Investment earnings 2,505 1,919
Other revenue 123
Interest and fiscal agent fees (56,250) (55,000)
Total Non Operatinq (53,745) (52,958)
Net Income (18,674) (14,451)
Retained Earninas Januarv 1 (14,451) 0
1 Retained Earnings December 31 ($33,125) ($14,451)
(See notes to financial statements)
-84-
n r
City of Brooklyn Ce te
Public Utilities Fund
BALANCE SHEET
December 31, 1989
Water Sewer Totals
Accounts Accounts 1989 1988
ASSETS
Current Assets
Cash and investments $763,987 $2,438,548 $3,202,535 $3,824,452
Temporary improvement notes 284,364 907,656 1,192,020 246,969
Accounts receivable net 60,328 123,188 183,516 115,060
Accrued revenue 80,343 164,058 244,401 223,968
Assessments receivable:
Deferred 91,230 91,230 93,599
Delinquent 2,314 2,314 3,341
Due from other governments 140,254 140,254 159,918
Inventories 6,256 6,256 10,556
Prepaid expenses 98,355 98,355 90,705
Total Current Assets 1,288,822 3,872,059 5,160,881 4,768,568
Restricted Assets
Temporary investments 3,700,000 300,000 4,000,000 4,000,000
Debt retirement investments 125,265 125,265 127,020
Total Restricted Assets 3,825,265 300,000 4,125,265 4,127,020
Fixed Assets
Mains and lines 7,137,693 4,995,034 12,132,727 12,097,034
Structures 3,387,906 1,027,064 4,414,970 4,314,304
Equipment 128,789 128,789 257,578 215,612
Land improvements 2,600 2,600 2,600
Land 23,938 3,388 27,326 25,318
10,680,926 6,154,275 16,835,201 16,654,868
Less: Allowance for
Depreciation 2,908,795 2-160,005 5,068,800 4,775,335
Total Fixed Assets 7,772,131 3,994,270 11,766,401 11,879,533
TOTALS $12,886,218 $8,166,329 $21,052,547 $20,775,121
(See notes to financial statements) I
-85-
F=6
Water Sewer Totals
Accounts Accounts 1989 1988
LIABILITIES. CONTRIBUTIONS AND,
RETAINED EARNINGS
Current Liabilities
Accounts payable $34,182 $34,182 $68,364 $145,793
Accrued salaries payable 4,940 4,939 9,879 9,911
Accrued vacaton and sick pay 9,027 9,027 18,054 16,681
Current portion of long-term debt 45,000 45,000 45,000
Total Current Liabilities 93,149 48,148 141,297 217,385
Lonq-Term Liabilities
Revenue Bonds 90,000 90,000 135,000
Total Lona-Term Liabilities 90,000 90,000 135,000
Fund E uit
Contributions 4,997,510 5,618,576 10,616,086 10,616,086
Retained Earnings:
Reserved:
Debt Retirement 125,265 125,265 127,020
Restricted assessments 93,544 93,544 96,940
Plant expansion 3,700,000 300,000 4,000,000 4,000,000
Unreserved 3,786,750 2,199,605 5,986,355 5,582,690
Total Retained Earninqs 7,705,559 2,499,605 10,205,164 9,806,650
Total Fund Equitv 12,703,069 _8,118,181 20,821,250 20,422,736
TOTALS $12,886,218 $8,166,329 $21,052,547 $20,775,121
-86-
City of Brooklyn Center F
Public Utilities Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1989
Water Sewer Totals
Accounts Accounts 1989 1988
Oneratina Revenue
Service to customers $662,165 $1,376,232 $2,038,397 $1,863,250
Service hook-up charges 5,818 317 6,135 6,741
Sale of ineters 15,218 15,218 1,386
Penalties 4,781 28,287 33,068 28,209
Total Operatinq Revenue 687,982 1,404,836 2,092,818 1,899,586
Operatinq Expenses 918,877 1,499,433 2,418,310 2,375,319
Operatinq Income or Loss(-) (230,895) (325,492) (475,733)
Nono�eratina Revenues or Expenses(-1
Investment earnings 413,408 295,181 708,589 628,015
Special Assessments 10,965 10,965 21,930 12,936
Metro Waste Control Comm. 10 10 6,361
Other 657 657 1,951
Interest and fiscal fees (7,180) (7,180) (8,889)
Total Non oqeratinq 417,850 306,156 724,006 640,374
Net Income 186,955 211,559 398,514 164,641
Retained Earninas Januarv 1 7,518,604 2,288,046 9,806,650 9,642,009
Retained Earnings December 31 $7,705,559 $2,499,605 $10,205,164 $9,806,650
(See notes to financial statements) i
1
i
_8�_ 1
i
F-8
City of Brooklyn Center
Recycling Refuse Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1989
1989
Operatina Revenues
Recycling service fees $54,449
Recycling container sales 30,133
Gross Marqin 84,582
Operatinq Ex�enses
Supplies 69,798
Other services 79,166
Total Oneratinq Expenses 148,964
Operatina Income (64,382)
Nono�eratinq Revenues or Expenses(-1
Intergovernmental revenue 90,431
Interest and fiscal agent fees (6,689)
Nono�eratinq Totals 83,742
Net Income 19,360
Retained Earninqs Januarv 1 0
Retained Earnings December 31 $19,360
(See notes to financial statements)
-88-
City of Brooklyn Center S
Public Utilities Fund
SCHEDULE OF WATER OPERATING EXPENSE
For the Year Ended December 31, 1989
Classification by Function
Source of Admin- Customer Year Ended December 31.
S UqpIV Transmission istration Accountinq 1989 1988
Personal Services:
Salaries and wages $39,287 $59,863 $56,979 $35,829 $191,958 $192,829
Payroll taxes 13,948 13,948 13,588
Employee benefits 11,348 11,348 9,276
39,287 59,863 82,275 35,829 217,254 215,693
Supplies and material 77,175 12,654 197 392 90,418 120,961
Heat, liqht and �ower:
Electricity 126,224 3,262 129,486 136,970
Gas 2,882 2,882 5,490
�o
129,106 3,262 132,368 142,460
Contractual Services:
Professional services 224 43,114 43,338 20,077
Postage 12,369 12,369 11,307
Insurance 3,791 3,791 5,528
Repairs and maintenance 9,186 23,700 8,025 884 41,795 61,000
Rent and administration 104,405 104,405 98,668
Equipment rental 879 6,869 12,143 19,891 19,701
9,410 24,579 166,204 25,396 225,589 216,281
Depreciation 84,873 168,375 253,248 229,327
Totals $339,851 $268,733 $248,676 $61,617 $918,877 $924,722
(See notes to financial statements)
��w r�r r� r� rr �r �r r� �s r�r► �w r� r
r� r� ri■r r_r r� ri■� r r�r r� ���r rr �w
City of Brooklyn Center S-7
Public Utilities Fund
SCHEDULE OF SEWER OPERATING EXPENSE
For the Year Ended December 31, 1989
Classification by Function
Disposal Admin- Customer Year Ended December 31.
Pumpinq Transmission istration Accountinq 1989 1988
Personal Services:
Salaries and wages $26,428 $36,209 $20,728 $83,365 $71,373
Payroll taxes 13,948 13,948 13,588
Employee benefits 11,348 11,348 9,276
26,428 36,209 46,024 108,661 94,237
Supblies and material 7,967 12,119 77 20,163 21,501
Heat, liaht and power 16,248 16,248 14,810
Contractual Services:
o Professional services 1,706 1,706 3,171
Postage $2,772 2,772 3,537
Insurance 3,791 3,791 5,528
Repairs and maintenance 4,862 11,387 3,673 19,922 16,343
Rent and administration 104,405 104,405 98,668
Equipment rental 6,869 12,060 18,929 18,677
Metro Waste Control
Commission 1,086,314 1,086,314 1,049,939
City of Brooklyn Park 27,301 27,301 25,732
1,118,477 11,387 120,444 14,832 1,265,140 1,221,595
Denreciation 39,539 49,682 89,221 98,454
Totals $1,208,659 $109,397 $166,545 $14,832 $1,499,433 $1,450,597
(See notes to financial statements)
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 seetion is:
�m�,�ayee Deferred Co�g�rsation F�d: This fund was established to
account f or f unds on deposit with the trustees w ho administer the City
sponsored def erred compensation plan.
r
-91-
City of Brooklyn Center G
Employee Deferred Compensation Fund
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 1989
Balance Balance
December 31, December 31,
1988 Additions Deductions 1989
ASSETS
Investments for deferred
compensation plans held
by trustees (1) $1,339,628 $337,553 $74,926 $1,602,255
TOTAL ASSETS $1,339,628 $337,553 $74,926 $1,602,255
LIABILITIES
Due to employees for
deferred compensation $1,339,628 $337,553 $74,926 $1,602,255
TOTAL LIABILITIES $1,339,628 $337,553 $74,926 $1,602,255
(See notes to financial statements)
(1) Investments are reported at market value.
-92-
r City of Brooklyn Center, Minnesota
G�NERAL FIX .�D ASSET ACCOUNT GROIIP
The General Fixed Asset Account Group was establ ished to account for
the City's fixed assets which are not accounted for in an enterprise
fund, and which are tangibl e in nature, hav e a 1 ife longer than the
current fiscal year, and have a significant value. Depreciation is
not recorded on those assets.
-93-
City of Brooklyn Center S-8
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1989
Balance Balance
January 1, December 31,
1989 Acauisitions Dis�osals 1989
Investments in General Fixed
Assets
Land $2,893,399 $2,893,399
Buildings and improvements 4,255,714 $5,066,593 $6,531 9,315,776
Park improvements 3,057,316 11,204 12,215 3,056,305
Furniture 568,387 144,904 13,128 700,163
Departmental equipment 3,439,349 319,740 194,404 3,564,685
Total Investments in General
Fixed Assets $14,214,165 $5,542,441 $226,278 $19,530,328
Sources of Investments
General Indebtedness $461,507 $7,347 $454,160
General Fund revenues 5,271,527 $600,551 83,918 5,788,160
Liquor store income 234,147 3,727 230,420
Contributions 251,758 4,008 247,750
Capital projects funds:
G.O. bonds 3,129,798 1,860,896 49,824 4,940,870
Tax levies 216,716 2,860,994 3,450 3,074,260
Sale of assets 128,159 2,040 126,119
Debt Service Funds excess 162,132 2,581 159,551
Capital Projects Fund Balance 3,221,700 51,287 3,170,413
Federal grants 889,440 220,000 14,159 1,095,281
State grants 247,281 3,937 243,344
Total Sources of Investments $14,214,165 $5,542,441 $226,278 $19,530,328
(See notes to financial statements)
-94-
i
S-9
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1989
Other
Function Land Buildinqs Imarovements E ui ment Total
General government $400 $961 $325,539 $326,900
Government buildings $245,712 3,857,654 349,747 104,847 4,557,960
Public safety 1,630 1,855,906 1,857,536 i
Public works 1,274,281 1,274,281
Recreation 257,239 257,239 I
Parks 1,722,687 614,201 2,705,597 423,051 5,465,536
Economic Development
Authority 925,000 4,841,891 23,985 5,790,876
Totals $2,893,399 $9,315,776 $3,056,305 $4,264,848 $19,530,328
(See notes to financial statements)
$-10
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
December 31, 1989
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 1989 Additions Deductions 1989
General ov rmm
g e e t $293,940 $52,086 $19,126 $326,900
Government buildings 4,343,854 214,106 4,557,960
Public safety 1,740,474 172,416 55,354 1,857,536
Public works 1,262,773 130,471 118,963 1,274,281
Recreation 207,840 56,606 7,207 257,239
Parks 5,427,998 63,166 25,628 5,465,536
Economic Development
Authority 937,286 4,853,590 5,790,876
Totals $14,214,165 $5,542,441 $226,278 $19,530,328
(See notes to financial statements)
-96-
City of Brooklyn Center, Minnesota
GENERAL LONG-TERM DEBT ACCOUN� 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 obl�gation of an Enterprise Fund of the City.
-97-
H I
City of Brooklyn Center
COMPARATIVE SCHEDULE OF GENERAL LONG-TERM DEBT
December 31, 1989
December 31,
1989 1988
Amounts Available and to be Provided
Amounts available in Debt Service Funds $4,081,662 $3,617,203
Amounts to be provided:
From future tax levies 201,293
From future tax increments 3,883,338 5,063,465
From future gas tax allocations 120,000 180,000
Total Available and to be Provided $8,085,000 $9,061,961
General Lona-Term Debt Pavable
General Obligation Bonds $1,130,000 $1,440,000
Special Assessment Bonds 970,000 1,220,000
Tax Increment Bonds 5,985,000 6,060,000
Sick and vacation accruals 341,961
Total General Long-Term Debt $8,085,000 $9,061,961
(See notes to financial statements)
i
-98-
City of Brooklyn Center I
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1989
General G.O. Special G.O. Tax Water Debt
Obliqation Bonds Assessment Bonds Increment Bonds Revenue Bonds Service Reauirements
Year Princi�al Interest Princi�al Interest Princi�al Interest Princi�al Interest Princi�al Interest
1990 $180,000 $77,175 $225,000 $41,979 $125,000 $466,838 $45,000 $5,265 $575,�0 $591,257
1991 340,000 58,445 215,000 31,775 135,000 457,650 45,000 3,510 735,000 551,380
1992 300,000 34,810 145,000 23,260 200,000 445,488 45,000 1,755 690,000 505,313
1993 310,000 11,780 110,000 17,158 240,000 429,282 660,000 458,220
1994 100,000 11,912 285,000 409,685 385,000 421,597
i 1995 85,000 7,131 340,000 385,957 425,000 393,088
1996 50,000 3,550 420,000 356,416 470,000 359,966
1997 40,000 1,100 420,000 323,325 460,000 324,425
1998 430,000 289,780 430,000 289,780
1999 510,000 252,395 510,000 252,395
2000 595,000 208,195 595,000 208,195
2001 690,000 156,795 690,000 156,795
2002 795,000 96,997 795,000 �,997
2003 800,000 32,400 800,000 32,400
$1,130,000 $182,210 $970,000 $137,865 $5,985,000 $4,311,203 $135,000 $10,530 $8,220,000 $4,641,808
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City of Brooklyn Center, Minnesota
STATISTICAL S�CTION
1
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
coverages and miscellaneous statistics.
This information is intended to be useful and of interest to inv estors
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 g information was the
Hennepin County Department of Finance. The sources of school district
information were the various school districts.
-100-
City of Brooklyn Center TABLE 1
I GENERAL GOVERNMENTAL
EXPENDITURES AND OTHER USES BY FUNCTfON (1)
Last Ten Fiscal Years
Community
Fiscal General Public Public Health Parks and Economic Non- Transfers Total
Year Government SafetY Works Services Recreation Develobment Departmental Out Expenditures
1980 $839,307 $1,442,619 $1,103,166 $37,336 $917,224 $241,256 $490,000 $5,070,908
1981 910,131 1,588,149 1,176,447 39,385 1,162,878 197,790 $250,000 5,324,780
1982 1,007,781 1,901,839 1,213,941 36,244 1,122,299 247,755 5,529,859
0 1983 1,054,064 1,875,122 1,288,081 28,663 1,268,907 91,953 5,606,790
1 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
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
(1) Funds included in this table are the General Fund.
City of Brooklyn Center TABLE 2
GENERAL GOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1)
Last Ten Fiscal Years
General
Fiscal Property Licenses Intergovern- Charges for Fines and Total
Year Taxes Permits mental Services Forfeitures Misc. Transfers In Revenue
1980 $2,188,218 $195,931 $1,496,924 $451,688 $111,382 $300,338 $434,243 $5,178,724
1981 1,655,642 207,100 2,388,848 728,828 111,596 188,284 544,965 5,825,263
1982 1,935,403 249,015 2,213,486 790,333 146,204 195,945 407,309 5,937,695
1983 2,133,859 328,019 2,459,133 859,928 154,812 244,433 489,111 6,669,295
0
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
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 $,888,306
1989 $3,325,101 $365,247 $3,628,255 $1,124,167 $278,812 $425,356 $176,505 $9,323,443
(1) Funds included in this table are the General Fund.
City of Brooklyn Center TABLE 3
TAX LEVIES AND TAX COLLECTIONS (1)
Last Ten Fiscal Years
Collections Percentage Collections
of Current of Levy of Prio� 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�/o of
Collected Tax Levy� Period Period Period Collections Tax Lew Receivable Tax LevY
1980 $2,350,734 $2,306,803 98.13% $62,371 $2,369,174 100.78% $135,953 5.78%
1981 2,746,020 2,619,758 95.409io 27,183 2,646,941 96.39% 235,032 8.56%
1982 2,965,702 2,854,688 96.26% 45,419 2,900,107 97.79% 300,627 10.14%
1983 2,482,369 2,420,772 97.52% 75,437 2,496,209 100.56% 286,787 11.55%
0
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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%
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% I
i
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%
(1) Funds included in this table are the General Fund, 69 Bldg Bonds, Park Bonds, and H.R.A.
(2) Includes property taxes only; lodging tax and tax increments are excluded.
r
City of Brooklyn Center TABLE 4
ASSESSED VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY (1)
Last Ten Fiscal Years
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989
Pooulation 31,230 30,990 30,820 30,830 30,820 30,630 30,267 29,759 29,420 28,578
Real Prope�rt
Assessed value (2): T
City:
Capacity
Homestead $70,506,973 $82,133,535 $74,268.430 $75,252,072 $78,112,774 $81,072,128 $90,912.548 $91,929,246 $90,162,927 511,834.805
Non-homestead 63,605,303 80,62B,961 104,715,944 122,369,087 124,305,853 126,444,994 125,109,658 139,433,999 154,031,355 19,707,824
Area-wide allocation (1,832,196) (1,680,82� (2,357,630) (1,437,243) (3,366,458
(2,134,213) (2,097,533) (1,345,864) (8.148.881) (977,841)
132,280,080 161,079,669 176,626,744 196,183,916 199,052,171 205,382,909 213,924,673 230,017,381 236,045,801 30,584,568
Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 2,097,505
Total assessed value 132,280,080 161,079,669 176,B28,744 196,183,916 198,974,171 204,640,435 209,867,062 224,579,793 226,261,128 28,487,083
Estimated Market Value 451,519,456 604,637,366 657,701,757 725,476,089 775,162,400 788,107,800 813,377,800 854,848,550 910,338,300 950,483,900
Personal Prooertv
i Assessed value 3,816,766 4,027,036 4,113,767 3,973,587 4,148,726 4,276,221 4,291,916 4,298,001 4,510,313 190,299
Estimated market value 8,876,200 9,365,200 9,566,900 9,240,000 9,848,200 9,944,700 9,981,200 9,990,700 10,489,100 3,827,500
�P
I
Total Taxable Prooertv
Assessed value $136,096,846 $165,106,705 $180,740,511 $200,157,503 $203,122,897 $208,916,658 $214,158,978 $228,875,794 $230,771,441 $28,657,382
�_=====a� ====�aa== ===�sz::= ::_��:::a
Estimated market value $460,395,656 $614,002,566 $B67,268,657 $734,716,089 $784,810,800 $798,052,500 $823,359,000 $884,837,250 $920,825,400 5954,091,400
Assessed Value as a percent of
Estimated Market Value 29.56�Po 26.89�Po 27.09�i6 27.24a� 25.884U 26.18�i6 26.01gb 2B.46o� 25.069b 3.004b
Per Caoita Valuations
Assessed Value $4,358 $5,328 $5,864 $6,492 $6,591 $6,821 $7,076 $7,691 $7,844 51,003
Estimated Market Value $14,742 $19,813 $21,651 $23,831 $25,464 $28,055 $27,203 $29,081 $31,299 $33,386
(1) Source: City of Brooklyn Center Assessing Department
(2) The Minnesota Legislature changed the property tax system for taxes payable in 1989. The tax base of property was changed from assessed values to tau capacity values.
City of Brooklyn Center TABLE 5
TAX RATES AND TAX LEVIES
Last Ten Fiscal Years
TAX RATES IN MILLS (2) Hennepin
School Districts County 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 1 School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka
1980 17.245 1.681 42.981 39.345 41.473 43.212 34.580 96.487 92.851 94.979 95.037
1981 16.603 1.510 33.512 33.427 40.757 37.996 33.373 84.998 84.913 92.243 87.972
1982 16.397 1.469 38.781 42.993 50.524 46.847 33.567 90.214 94.426 101.957 96.811
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
1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542
i
TAX LEVIES �N DOLLARS Hennepin
School Districts County Total City,
Year Vo-Tech No.286 No.279 No.281 No.11 Special Schools,
Collectible Cit 1 School Earl Brown Osseo Robbinsdale Anoka Districts and Countv
1980 $2,350,734 $203,243 $1,737,432 $1,568,491 $1,650,314 $1,522,661 $4,711,671 $13,744,546
1981 2,746,020 237,607 1,939,916 1,636,937 2,058,145 766,972 5,925,084 15,310,681
1982 2,965,702 265,508 2,422,618 2,061,005 2,606,004 881,745 6 066 917
17,269,499
1983 2,482,369 202,256 2,790,808 2,625,207 2,781,573 1,049,119 6,716,839 1g,64g,17�
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 3,476,104 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
(1) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center.
(2) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989.
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City of Brooklyn Center TABLE 6
SPECIAL ASSESSMENT COLLECTIONS
Last Ten Fiscal Years
Percent
Current Collections Total
Special Percent Collection Collections
Year Assessment of of Prior Total to Current
Collected Billinc�s Amount Billinqs Years Collections LevX
1980 $655,175 $572,104 87.32% $239, 038 $811,142 123.81
1981 395,439 335,859 84.93% 95,963 431,822 109.20%
0 1982 733,198 649,472 88.58% 95,962 745,434 101.67%
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%
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%
1987 572 851 2 1 0 o II
55 68 96.39 /0 3,139 555,307 96.94 /o
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%
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 Pobulation Value Debt Service Fund Debt Values C aaita
1980 31,230 $136,096,846 $3,420,000 $403,728 $3,016,272 2.22% $96.58
1981 30,990 165,106,705 3,235,000 508,101 2,726,899 1.65% 87,gg
1982 30,820 180,740,511 3,040,000 606,062 2,433,938 1.35% 78.g7
1983 30,830 200,157,503 2,800,000 678,318 2,121,682 1.06% 68.82
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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
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 aaita
1989 28,578 $28,657,382 $1,130,000 $274,843 $855,157 2.98% $2g.g2
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T I
City of Brookiyn Center ab e 8
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1989
Estimated market value for taxes payable in 1989 $954,091,400
Debt limit, 2% of market value 19,081,828
Total bonded debt 8,220,000
i
Deductions (See Note 5):
A. Bonds:
1. Special Assessment Bonds 970,000
2. State Aid Street Bonds 120,000
3. Utility Revenue Bonds 135,000
4. Tax Increment Bonds 5,985,000
7,210,000
B. General Debt Service Funds 274,843
Total Deductions 7,484,843
Total Debt Applicable to Debt Limit 735,157
Legal Debt Margin, December 31, 1989 $18,346,671
-108-
City of Brooklyn Center TABLE 9
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1989
City's Share
Governmental Unit Gross Debt Sinkina Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $1,130,000 $274,843 $855,157 100.0�/0 $855,157
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 3,938,023 2,448,365 1,489,658 10.2% 151,945
994 325
11 An ka 20 415 000 3 562,031 16,852,969 5.9
No. o
No.279 Osseo 49,830,000 3,669,000 46,161,000 26.8�/0 12,371,148
No. 286 Brooklyn Center 120,000 91,955 28,045 100.OMo 28,045
Area Vocational Technical School No. 287 3,300,000 949,095 2,350,905 4.9°k 115,194
Metropolitan Transit 10,950,000 5,707,000 5,243,000 1.5% 78,645
Metropolitan Council (2) 52,090,000 21,751,044 30,338,956 1.5�/0 455,084
Metropolitan Airport (3) 0 0 0 0.0% 0
Hennepin County 96,775,000 8,652,910 88,122,090 2.7�/0 2,379,296
Hennepin County Park Reserve District (4) 3,800,000 26,142 3,773,858 2.7% 101,894
Total Overlaopinq Debt 241,218,023 46,857,542 194,360,481 16,675,578
Total Direct and Overlapping Debt $242,348,023 $47,132,385 $195,215,638 $17,530,735
(1) Includes only general obligation debt which is being repaid through property taxes.
(2) Excludes $371,881,000 less $134,440,000 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.
(3) Excludes $161,695,000 less $37,454,470 in sinking funds of G.O. Airport bonds supported from airport user fees.
(4) Excludes $2,395,000 less $256,042 in sinking funds of Hennepin County issued G.O. Baker Golf Revenue Bonds. These
bonds are supported from golf fees at Baker Park golf course.
Direct Overlapping
Comqarative Net Debt Ratios Charaeable to Citv Total Debt Debt
Debt to tax capaciry value $28,657,382 61.17�/0 2.98�/0 58.199�0
Debt to market value $954,091,400 1.84% 0.09�/0 1.759�
Per capita debt, population 28,578 $613.43 $29.92 $583.51 I
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I TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
Debt Service
Total (1) Total (2) as a Percent
Debt General of General
Year Princiaal Interest Service Exqenditures Exaenditures
1980 $195,000 $134,211 $329,211 $5,070,908 6.49%
1981 185,000 226,785 411,785 5,324,780 7.73%
1982 195, 000 224,100 419,100 5, 529, 859 7.58%
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%
(1) For years 1979 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.
(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.
-110-
City of Brooklyn Center TABLE 11
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
Ratio of
Net
Net Revenue
Gross Revenue to Debt
Year Revenue E�x enses�l,1 Available Principal Interest Total Service
1980 $1,950,340 $952,850 $997,490 $35,000 $21,645 $56,645 17.609 :1
1981 2 272 211 1 1 2 1 40 000 20 280 60 280 17.966 :1
89, 03 ,083,008
1982 2,242,053 1,565,291 676,762 40,000 18,720 58,720 11.525 :1
1983 2,195,913 1,465,713 730,200 40,000 17,160 57,160 12.775 :1
1984 2 386 974 1 550 216 836 758 40 000 15,600 55,600 15.050 :1
1985 2,435,238 1,549,645 885,593 45,000 14,040 59,040 15.000 :1
1986 2,316,456 1,613,187 703,269 45,000 12,399 57,399 12.252 :1
1987 2 330 310 1 679 915 650 395 45 000 10 786 55 786 11.659 :1
1988 2,548,849 2,047,568 501,281 45,000 8,889 53,889 9.302 :1
1989 $2,824,004 $2,075,841 $748,163 $45,000 $7,180 $52,180 14.338 :1
(1) Excludes depreciation and interest on bonds.
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City of Brooklyn Center TABLE 12
PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
Commercial Residential
Construction (1) Construction (1) Property Value (2)
Bank
Year Value Units Value Commercial Residential Non-Taxable De�osits(31
1980 $12,544,300 43 $3,061,000 $161,917,915 $330,196,500 $50,386,615 N/A
1981 12,926,950 33 1,157,000 215,536,256 392,096,600 52,828,091 N/A
1982 2,497,700 70 2,055,000 228,523,271 483,354,800 52,828,091 N/A
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
N
1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 N/A
1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A
1987 7,220,527 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 $83,719,768 $219,077,986
(1) Construction values were supplied by the City of Brooklyn Center Planning Department.
(2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department.
(3) Bank deposits were supplied by the banks.
City of Brooklyn Center TABLE 13
PRINCIPAL TAXPAYERS
December 31, 1989
Percentage
1989 of total
Market Market
Taxqavers Tvqe of Business Valuation Value
Equitable Real Estate
Society of America Brookdale Shopping Center $47,048,200 4.93%
Ryan Construction Office Buildings 21,532,600 2.26%
Shingle Creek Plaza II Land, Warehouse and Office
Buildings 13,607,500 1.43%
Norman Chazin Apartment Buildings 12,231,100 1.28%
Robert H. Bradley Office and Warehouse Building 11,003,200 1.15%
Commercial Partners Brookdale Square Shopping
Center 10,921,600 1.14%
Twin Lake North Company Apartments 8,843,000 0.93%
Sears Roebeck and Company Sears Department Store 8,662,900 0.91%
Cigna Real Estate Funds, Office Buildings 8,498,700 0.89%
Ltd. Partnership
Plaza Real Estate Partners Hotel/Motel 7,893,600 0.83%
Total Market Value $150,242,400 15.75%
(1) Market values were supplied by the City of Brooklyn Center Assessing Department.
-113-
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE
Effective January 1, 1990 (Continued next page)
Policy Period
Tvoe of Coveraae and Details From To Liabilitv Limits
I. Statutorv Liabilitv to Emplovees
a. Workers' Compensation 01-01-90 01-01-91 Statutory
(participant in the League
of Minnesota Cities Insurance
Trust Self-Insured Workers'
Compensation Program)
II. Liabilitv to the Public
a. Generalliability,
comprehensive 01-01-90 01-01-91
(1) Bodily injury $600,000 combined single limit
(2) Property damage $600,000 combined single limit
(3) Personal injury $600,000 combined single limit
The 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
b. Automobile liability,
comprehensive 01-01-90 01-01-91
(1) Bodily injury $600,000 occurrence
(2) Property damage $600,000 occurrence
(3) Uninsured motorist $600,000 occurrence
c. Liquor stores' dram shop 01-01-90 01-01-91 $1,000,000 each common
cause
d. Golf Course and Central Park 04-01-90 10-31-90 $1,000,000 each common
liquor liability cause
III. L
oss of Income on Citv Enternrises
a. Liquor stores 01-01-90 01-01-91 $450,000
b. Public utilities 01-01-90 01-01-91 $450,000
-114-
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 1990
Buildings
and
Policy Period Structures Content:
(Replacement (Replacement
Tvpe of Coveraqe and Details From To Cost� Cost�
IV. Insurance on Citv Prooertv 01-01-90 01-01-91
a. Public and institutional
property, all risk, blanket
I
$18,908,000; $1,000 deductible
replacement value on buildings.
(1) Civic Center $4,917,000 $492,000
(2) East Fire Station $529,000 $59,000
(3) Municipal Service Garage $1,200,000 $231,000
(4) Elevated Water Towers 3 locations $2,742,000 $0
(5) Park Shelter Buildings 17 locations $1,333,000 $76,000
(6) Pump Houses 7 locations $462,000 $126,000
(7) Lift Stations 9 locations $320,000 $71,000
(8) Meter Station $15,000 $0
(9) Storage Building $254,000 $0
(10) Outdoor lighting systems 7 locations $300,000 $0
(11) Liquor Store and Fire Station $501,000 $211,000
(12) Humboldt Liquor Store $221,000 $171,000
(13) Leased Liquor Store $0 $215,000
(14) Movable Properties $0 $186,000
(15) Pedestrian Bridge $453,000 $0
(16) Picnic Shelter $50,000 $0
(17) Earle Brown Heritage Center $5,642,000 $1,121,000
(18) Centerbrook Golf Course Club House $221,000 $22,000
(19) Centerbrook Golf Course Garage $16,000 $2,000
(20) Lions Park Concession Stand $32,000 $3,000
Liabilitv Limits
b. Boiler and machinery 01-01-90 01-01-91 $3,000,000 per accident
c. Automotive physical damage 01-01-90 01-01-91
(1) Comprehensive ACV $250 deductible
(2) Collision ACV $500 deductible
V. Criminal Acts
a. Faithful performance blanket position $100,000 per loss
b. Money and securities (broad form) Various
c. Depositor's forgery $100,000
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City of Brooklyn Center TABLE 15
SCHEDULE OF CASH AND TEMPORARY CASH INVESTMENTS
December 31, 1989
Cash in Banks
Marquette Bank Brookdale
Brookiyn Center, Minnesota $227,413
First National Bank of Minneapolis,
Minneapolis, Minnesota 1,616
Temporary Investments:
Carrying
Investment Tvpe Interest Rate Maturitv Amount
Commercial Paper 8.271 1990 $1,720,833
U.S. Treasury bond 4.25 1992 75,000
U.S. Treasury notes 7.036-9.125 1990 3,459,797
Federal Home Loan Bank bonds 6.55-10.00 1990-1992 7,150,098
Federal National Mortgage
Association bonds 7.12-12.00 1990-1992 7,469,715
Federal Farm Credit Bank bonds 8.30-9.75 1990 4,600,000
Total Temporary Investments 24,475,443
Total Cash and Investments per Note 2 24,704,472
i Interfund borrowings -(temporary improvement notes) 4,037,568
Accrued interest on investments 513,514
Change funds 5,360
Performance Deposits (1,500)
Total Cash �Temporary Investments and Restricted Investments $29,259,414
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City of Brooklyn Center TABLE 16
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
School Enrollments (2)
Per No 286
Fiscal Capita No 11 Earle No 281 No 279 Unemployment
Year Population Incomelll Anoka Brown Robbinsdale Osseo Rate
1980 31,230 $12,344 1,337 1,367 775 2,649 4.7%
1981 30,990 13,978 1,292 1,327 700 2,442 6.4%
1982 30,820 14,879 1,238 1,298 630 2,263 6.5%
1983 30,830 15,626 1,300 1,311 622 2,184 6.4%
1984 30,820 17,222 1,103 1,310 700 2,039 4.8%
J
1
1985 30,630 18,240 1,032 1,326 567 2,003 4.5%
1986 30,267 19,303 1,011 1,361 555 1,838 3.9%
1987 29,759 20,075 989 1,376 570 1,674 4.1
1988 29 420 20 878 989 1 456 563 1 674 3.5%
1989 28,578 $21,713 671 1,652 563 1,674 3.5%
(1) Minnesota Department of Jobs and Training Regional Economic Information System, Bureau of Economic
Analysis. Per capita income figures for 1981-1984 are revised as of 4/30/88. Figures for 1987, 1988,
and 1989 are estimates.
(2) School enrollment data was supplied by the schools. I
r r
TABLE 17
City of Brookiyn Center (Continued
M{SCELLANEOUS STATISTICAL FACTS next page)
December 31, 1989
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:
C ity 104. 25
County 6.49
State 10J9
Miles of Storm Sewers 40.26
Number of Street Lights 994
Building Permits: Number Estimated
Issued Cost
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
1982 516 5,968,824
1981 518 16,190,205
1980 563 $17,454,690
City Employees as of December 31, 1989
Regular full-time 132
Temporary or part-time 261
Total 393
Fire Protection:
Number of Stations 2
Number of Full-time Employees 1
Number of Volunteer Firemen 38
Police Protection:
Number of Stations 1
Number of Full-time Employees 50
Number of Part-time Employees 14
Police Department Vehicles 21
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City of Brooklyn Center TABLE 17
MISCELLANEOUS STATISTICAL FACTS (Continued
December 31, 1989 next 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.
Full-time employees 14
Part-time employees 200
Playgrounds 17
Park shelters
17
Ice skating rinks 10
Hockey rinks g
Softball diamonds 26
Baseball diamonds 6
Tennis courts 1 g
Basketball courts 1 g
Municipal Water Plant:
Number of connections 8,891
Average daily consumption in galtons 4,396,871
Peak daily consumption in gallons 11,408,000
Plant capacity gallons per day 16,500,000
Miles of water mains 112.22
Number of fire h drants
Y 827
Number of wells g
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.43
Municipal Sewer Plant;
Number of connections g,g16
Miles of sanitary sewer 104.73
Daily disposal capacity in gallons 8,497,440
Number of lift stations 1p
Residential rate per quarter $25.15
Municipal Liquor Stores (Off-sale):
Number of owned stores 2
Number of leased stores 1
1989 sales $2,414,126
Elections
Last General Election Nov m r
e be 8, 1988
Registered voters 19,690
Votes cast 15,462
Percentage of registered voters voting 78.5%
Last Municipal Election 1988
Registered voters 19,690
Votes cast 15,462
Percentage of registered voters voting 78.5%
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