HomeMy WebLinkAboutCAFR-1987 COMPREHENSIVE
ANNUAL
AUDITED FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1987
GERALD G. SPLINTER, CITY MANAGER
l
Prepared by
THE DEPARTMENT OF FINANCE
Paul W. Holmlund, Director
i
f
1
(Member of Government Finance Officers
Association of the United States and Canada)
CitY of Brooklyn Center
COMPREHENSIV�ANNUA� FYNANCfAL REPORT
Year Ended December 31, 1g87
TABLE OF CONTENTS
Exhibit Page
Number Number
I. INTRODUCTORY SECTION
Title Page
Table of Contents
City Officials
Organization Chart 2
City Manager�s Letter 3
Finance Director's Letter 5- 17
Certificate of Achievement �g
II. FINANCIAL SECTION
Auditors' Report 19
A. General Purpose Financial Statements
(Combined Statements Overview):
Combined Balance Sheet All Fund Types and
Account Groups 1 20 21
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances All Governmental
Fund Types 2 22
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances Budget (GAAP Basis)
And Actual General and Special Revenue Funds 3 23
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings Proprietary
Fund Type 4 24
Combined Statement of Changes in Financial
Position Proprietary Fund Type 5 �5
Notes to Financial Statements 26 55
City of Brooklyn Center
COMPREHENSIVE ANNUAL N REPORT
Year Ended December 31, 1987
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
B. Combining and Individual Fund Financial Statements:
General Fund:
Balance Sheet A-1 56
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget
(GAAP Basis) and Actual A-2 57
Schedule of Revenue Other Financing
Sources Budget and Actual S-1 58 60
Schedule of Expenditures Compared to
Budget S 61 65
Special Revenue Funds:
Combining Balance Sheet B- 66
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances Budget and Actual B- 67 69
Debt Service Funds:
Combining Balance Sheet C-1 70
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 71 73
Capital Projects Funds:
Combining Balance Sheet D-1 74
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 75
Project-Length Schedule of Construction
Projects Capital Projects Fund S-3 76
Project-Length Schedule of Construction r
Projects Municipal State Aid
Construction Fund S-4 77
CitY of Brookl�n Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1g87
TABLE OF CONTENTS
1 Statement/
Schedule Page
Number Number
Project-Length Schedule of Construction
Projects Special Assessment
Construction Fund S_5 78
Enterprise Funds:
Combining Balance Sheet F-1 79 80
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings F-2 81
Combining Statement of Changes in Financial
Position F-3 82 83
Statement of Revenues, Expenses, and Changes
in Retained Earnings Municipal Liquor
Fund F-4 84
Balance Sheet Public Utilities Fund F-5 85 86
Statement of Revenues, Expenses, and Changes
in Retained Earnings Public Utilities
Fund F-6 87
Schedule of Water Operating Expense S-6 88
Schedule of Sewer Operating Expense S-7 8g
Agency Funds:
Combining Statement of Changes in Assets and
Liabilities All Agency Funds G 90 g2
City of BrooklYn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1987
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
By Sources S-8 93
Schedule of General Fixed Assets By
Function and Activity S-9 94
General Long-Term Debt Account Group:
Comparative Schedule of General Long-Term Debt H 95
Summary of Debt Service Requirements
to Maturity I 96
III. STATISTICAL SECTION
Table
Number
General Governmental Expenditures and Other
Uses 1 97
Gener Govern enta Re enue n h
al m 1 v s a d Ot er
Financing Sources 2 98
Pro ert Tax Levies and Collections 3 99
P Y
Assessed and N9arket Value of Taxable
Property 4 100
Property Tax Rates and Tax Levies All
Overlapping Governments 5 101
Special Assessment Collections 6 102
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 7 103
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1g87
TABLE OF CONTENTS
Table Page
Number Number
Computation of Legal Debt Margin 8 104
Computation of Direct and Overlapping Debt g 105
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures 10 106
Revenue Bond Coverage 11 107
Property Value and Construc�ion 12 108
Principal Taxpayers 13 109
Insurance Coverage 15 110-111
Schedule of Cash and Temporary Cash Investments 16 112
Miscellaneous Statistics 113-115
1
City of Brooklxn Center
CITY OFFICIALS
For the Year Ended December 31, 1987
ELECTED OFFICIALS
Term of Office Term Expires
Mayor Dean Nyquist Four Years 12/31/g0
Councilman Rich Theis Four Years 12/31/88
Councilman Bill Hawes Four Years 12/31/88
Councilman Gene Lhotka Four Years 12/31/90
Councilwoman Celia Scott Four Years 12/31/90
APPOINTED OFFICIALS
City Manager Gerald G. Splinter
City Clerk Darlene Weeks
City Treasurer Paul W. Holmlund
City Attorney LeFevere, Lefler,
Kennedy, 0'Brien
Drawz
Department Heads:
Finance Paul W. Holmlund
Public Works Sy Knapp
Police James Lindsay
Fire Ronald Boman
Planning and Inspection Ronald Warren
Recreation Arnold Mavis
Assessment Peter Koole
Liquor Stores Gerald Olson
Personnel Coordinator Geralyn Barone
HRA Coordinator Brad Hoffman
City Engineer Bo Spurrier
Public Works Superintendent Richard Ploumen
Health Officer Duane Orn, M.D.
Fire Marshall Gerald Pedlar
Sanitarian Thomas Heenan
Civil Defense Coordinator James Lindsay
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ORGANIZATION CHART COUNCIL-MANAGER PLAN
City of Brooklyn Center, Minnesota
ADVISORY y CHARTER COMMISSION
Capital Improvement Review Board (appointed by district court)
ELECTORATE 4
ADVISORY CITY ATTORNEY
Housing Commission
J 1
r
ADVISORY CITY COUNCIL
Human Rights Resources Commission HRA COORDINATOR
4
I r i
ADVISORY
Parks and Recreation Commission PERSONNEL COORDINATOR
4
CITY MANAGER
ADVISORY CITY CLERK
Planning Commission 4
i
N
DIRECTOR
Emerqency
Prepared-
ness
F R k- Vr- y p' r
DIRECTOR DIRECTOR DIRECTOR CHIEF DIRECTOR CHIEF MANAGER DIRECTOR ASSESSUR
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
4 i. ir 4 Ir w L. i.r
1 1
r. 4 F- -a F� ir -a
Golf Recreation Park Government Engineering Street Public
Course Programs Maintenance Buildings Division Division Utilities
and Division Division Division
Community
Center
L y L ai I�
ciTY 6301 SHINGLE CREEK PARKWAY
OF
B ROOKLYN BROOKLYN CENTER, MINNESOTA 55430
TELEPHONE 561-5440
C ENTER EMERGENCY- POLICE FIRE
911
June 28, 1988
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
In accordance with Minnesota Statutes and Section 7.12 of the City
Charter, I hereby transmit the Comprehensive Annual Financial Report
of the City of Brooklyn Center for the fiscal year ended December 31,
1987. Responsibility for both the accuracy of the presented data and
the completeness and fairness of the presentation, including all
disclosures, rests with the City. Management believes that the data
as presented is accurate in all material aspects; that it is present-
ed in a manner designed to fairly set forth the financial position
and results of operations of the City as measured by the financial
activity of its various funds; and that all disclosures necessary to
enable the reader to gain the maximum understanding of the City's
financial affairs have been included.
In developing and evaluating the City's accounting system, considera-
tion is given to the adequacy of internal accounting controls.
Internal accounting controls are discussed by the Finance Director in
his accompanying letter of transmittal and, within that framework, I
believe that the City's internal accounting controls adequately safe-
guard assets and provide reasonable assurance of proper recording of
financial transactions.
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, including generally accepted accounting principles promulgated by
the Governmental Accounting Standards Board. It is my belief that the
accompanying report meets program standards, and it will be submitted
to the Government Finance Officers Association for review.
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MAYOR AND MEMBERS OF CITY COUNCIL June 28, 1988
In accordance with the above mentioned uidelines the ac
g companying
report consists of three parts: (1) Introductory Section, including
the Finance Director's letter of transmittal; (2) Financial Section,
including the financial statements and supplemental data of the
government, accompanied by our independent auditors' report; (3)
Statistical Section, including a number of tables of data depicting
the financial history of the government for the past ten years, infor-
mation on overlapping governments, and other miscellaneous information.
Minnesota Statutes and the City Charter require that the financial
statements of the City of Brooklyn Center be audited by a certified
public accountant selected by the City Council. This requirement has
been complied with and our auditors' report is included in the finan-
cia 1 section of this report.
Respectfully submitted,
Gera G. Splinter
City Manager
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CITY 6301 SHINGLE CREEK PARKWAY
OF
B ROOKLYN BROOKLYN CENTER, MINNESOTA 55430
TELEPHONE 561-5440
C ENTER EMERGENCY POLICE FIRE
911
June 27, 1988
Mr. Gerald G. Splinter
City Manager
City of Brooklyn Center
Dear Mr. Splinter:
The Comprehensive Annual Financial Report of the City of Brooklyn
Center, Minnesota for the fiscal year ended December 31, 1987 is
submitted herewith. I believe the data, as presented, is accurate in
all material aspects; that it is presented in a manner designed to
fairly set forth the financial position and results of operations of
the City as measured by the financial activity of its various funds;
and that all disclosures necessary to enable the reader to gain the
maximum understanding of the City�s financial affairs have been in-
cluded.
THE REPORT
The organization, form and content of this report were prepared in
accordance with standards prescribed by the Governmental Accounting
Standards Board; the Government Finance Officers Association of the
United States and Canada; the Minnesota State Auditor; and the City
Charter.
ORGANIZATION
Braoklyn Center was incorporated as a Village on February 14, 1911,
and became a City of the second class on December 8, 1966 upon the
adoption of the City Charter by a referendum vote of the people.
The form of government established by the Charter is the "Council-
Manager Plan". The Council exercises the legislative power of the
City and determines all matters of policy. The Council is composed of
a Mayor and four Council persons who are elected at large. A charter
amendment in 1986 increased the term in office of the Mayor and Coun-
cil to four years. They are to be elected on a staggered basis in the
November general election. The City Manager is the head of the Admin-
istrative branch of the City Government and is responsible to the
Council for the proper administration of all affairs relating to the
City. The City Manager is also the chief accounting officer of the
City and must provide such information about the City as the Council
may require.
4 �u��
I C�
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Mr. Splinter June 27, 1988
The offices of City Clerk and City Treasurer are subordinate to, and
appointed by, the City Manager. The City Clerk has duties in
connection with the keeping of the public records. The City Treasurer
has duties in connection with the receipt, disbursement and custody of
publ ic funds. The City Attorney is appointed by the Counci 1. A 1 1
other officers and employees of the City are appointed by the City
Manager. Appointment or removal of department heads are made final
upon a majority vote of the Council.
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
In developing and evaluating the City's accounting system,
consideration is given to the adequacy of internal accounting
controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assuranee regarding: (1) the
safeguarding of assets against loss from unauthorized use or
disposition; and (2) the reliability of financial records for
preparing financial statements and maintaining accountability for
assets. The concept of reasonable assurance recognizes that: (1) the
cost of a control should not exceed the benefits likely to be derived;
and (2) the evaluation of costs and benefits requires estimates and
judgements by management.
All internal control evaluations occur within the above framework. I
believe that the City's internal accounting controls adequately safe-
guard assets and provide reasonable assurance of proper recording of
financial transactions. A summary of significant accounting policies
is contained in the Notes to Financial Statements in th2 Financial
Section of this report. Accounting for all the City's activities is
centralized under the Department of Finance. The responsibility for
maintaining and prescribing all financial records, establishing and
maintaining internal control, and preparing financial and budgetary
reports is delegated to this department.
The City Charter grants the City Council full authority over the
financial affairs of the City. The Charter requires that all funds of
the City, except funds made up of proceeds of bond issues, debt ser-
vice funds, funds accounting for special assessments, and public
service enterprise funds be budgeted. The City Manager is charged
with the responsibility of preparing the estima�es of the annual
budget and the enforcement of the provisions of the budget as speci-
fied in �he budget resolution. Upon adoption of the annual budget
resolution by the Council, it becomes the formal budget for City
operations. After the budget resolution is adopted, the Council can
increase the budget only if actual receipts exceed the estimates, or
from accumulated surplus in the amount of an unexpended appropriation
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Mr. Splinter June 27, 1g88
from the previous fiscal year. Financial reports, which compare
actual performance with the budget, are prepared monthly and presented
to the Council so the Council is able to review the financial status
and measure the effectiveness of the budgetary controls.
REPORTING EP3TITY
In accordance with Governmental Accounting Standards Board pronounce-
ments, the City's financia 1 statements inc lude a 1 1 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 for funding deficits.
As a result of applying this criteria, certain organizations ha ve been
included or excluded from the City's financial statements, as follows:
INCLUDED:
Housing and Redevelopment Authority in and for the City of Brookl n
Y
Center (HRA).
The HRA was created by the City to carry out local programs for
assistance to low income citizens for home improvements. Inasmuch as
the HRA's governing board is appointed by the City Council, the
Council reviews and approves HRA tax levies, the City provides major
community development financing for HRA activities, and the City
P�anager is the Executive Director, the HRA is considered to be a
component unit of the City.
EXCLUDED:
The Brooklyn Center Firefighter's Relief Association.
This association is organized as a non-profit organization by its
members to provide pension and other benefits to such members in
accordance with P2innesota 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
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Mr. Splinter June 27, 1988
association, tax levies, if necessary, are determined by the associa-
tion and are only reviewed by the City, and the association pays
benefits directly to its members. Because the association is able to
fund its programs independently of the City, it is excluded from
reporting entity. State Aid insurance premium tax in the amount of
$78,913 and ad valorem taxes in the amount of $41 were receipted
by the Ci�y and disbursed to the association during 1987.
Independent School District No. 286 (Earle Brown)
Independent School District No. 279 (Osseo)
Independent School District No. 281 (Robbinsdale)
Independent School District No. 11 (Anoka)
Independent School District No. 287 (Suburban Hennepin County Area
Vocational Technical Institute)
These Districts, like all school districts in Minnesota, are complete-
ly independent of any other governmental entity. They have their own
eiected Board of Education, levy their own taxes and prepare and issue
their own financial reports.
FINANCIAL PROSPECTS FOR FUTURE YEARS
Based on trends of the past several years and current projections,
there will be a greater reliance on State intergovernmental revenues
and a de-emphasis of Federal intergovernmental revenues as sources for
financing of the City's operations. A strong local tax base should
occur as a result of continued commercial development. The City�s
Hous�ng and Redevelopment Authority has succeeded in attracting such
growth through its use of tax increment financing for office and
retail complexes in the downtown district.
THE CITY AND ITS SERVICES
The City provides the full range of municipal services contemplated by
statute or charter. This includes public safety (police and fire),
streets, sanitation, health and social services, culture-recreation,
public improvements, planning and zoning, and general administrative
services. The City also operates three off-sale liquor stores and a
public water and sewer utility. 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.
The financial condition of each of the City's funds as of December 31,
1987 and the results of each funds' operations for the year, together
with a comparison of these results to budget estimates and a
comparison to the previous years' results, is presented within the
Financial Section of this report.
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Mr. Splinter June 27, 1988
GENERAL GOVERNMENT FUNCTIONS
As of December 31 1987, the fund ba lance of the Genera 1 Fund, which
had not been reserved or designated for a specific purpose, totaled
$5,200,763. This amount represents the working capital that is
available to finance the general operations of the City.
Revenues and other financing sources used for general governmental
operations totaled $7,807 in 1g87, an increase of $113 over
the previous year. The largest component of this increase was in
intergovernmental revenue from the State of Minnesota. This aid had
been increasing at a slower rate prior to 1986 and is expected to
level off in future years. Court fines were up due to an increase in
the number of tickets issued. Charges for services was the second
fastest growing component of revenues and was driven by increased
recreation fees. A decrease in licenses and permits oceurred because
the 1986 figure included an unusualZy large number of building
permits. Miscellaneous revenues declined because of lower interest
income. The following table presents an analysis of major revenue and
other financing sources of the General Fund for 1987 and compares them
to 1 g86
General Fund Revenue
Increase
of (Decrease)
1987 Total 1986 From 1986
Taxes, Ad Valorem $2,541,016 32.6� $2,566,220 (25,204)
Intergovernmental revenue 3,060,252 39•2 2,866,442 193,810
Charges for services 1,114,203 14.3 965,527 148,676
License and permits 345,019 4.4 411,406 (66,387)
Court fines 269,903 3.4 224,753 45,150
Miscellaneous revenues 310,613 4.0 318,453 (7,840)
Other financing sources 166,888 2. 341,403 (174
TOTAL $7,807,894 100.0% $7,694,204 113,690
Actual revenues and other financing sources were less �than the 1987
budgeted amount by $276
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Mr. Splinter June 27, 1988
Expenditures of funds for genera]. government operations totaled
$7,649,436 in 1987, an increase of $494,912 over the previous year.
Expenditure increases over 1986 reflect the addition of two full time
police officers and the purchase of a fire truck in the Public-Safety
category. Parks and recreation experienced a significant increase in
public participation which was offset by user fees. The following
table presents an analysis of major expenditure functions and other
uses of funds of the General Fund for 1987 and compares them to 1986:
General Fund Expenditures
Increase
of (Decrease)
1g87 Tota1 1986 From 1986
General Government
$1,532,185 20.0� $1,487,876 44,309
Public Safety 2,604,773 34.1 2,288,062 316,711
I Public Works 1,552,532 20.3 1,549,584 2,948
Community Health Services 48,185 45 ,294' 2,891
Parks and Recreation 1,597,g01 20.9 1,405,020 1g2,881
Non-Departmental 313,860 4.1 378,688 (64,828)
TOTAL $7,649,436 100.0� $7,154,524 $494,912
Expenditures of funds were $685,213 less than the 1g87 budgeted
amount.
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Mr. Splinter June 27, 1g88
Ad valorem tax levies for the current year 1987 and for the two previous
years are summarized and presented below:
1987 1986 1985
t Mill Mill 1�Ii11
Tax Levy Rate Amount Rate Amount Rate Amount
City Operations 14.829 $3,375,352 13.190 $2,853,064 12.799 $2,653,833
Debt Redemption 1.607 365,801 1.716 371,421 1.788 370,801
Public Employees'
Retirement 1.731 394,049 1.710 369 ,611 1.765 3b5,968
TOTAL LEVY 18.167 $4,135,202 16.616 $3,594,096 16.352 $3,390,602
Assessed Valuation 1987 1986 1g85
Real estate $225,925,657 $211,964,595 $207,517,122
Non-exempt personal property 4,296,�J01 4,291,916 4,276,221
Fiscal disparities adjustment (1,345,864) (2,097,533) (2,134,213)
TOTAL ASSE�SSED VALUATION $228,875 $214,158,978 $209
Minnesota's Levy Limitation Law was first implemented in 1973 The law
placed a limitation on the amount of increased property tax which a city
can levy. The amount of increase is generally limited to 5� of the
prior year's levy. The law also provides certain mechanisms by which a
municipality may adopt levies outside the levy limitations. The
following table summarizes the City's compliance with the law for the
years '1984 through 1987:
�987 1986 1985 1984
Total tax levy $4,058,617 $3,594,096 $3,390,602 $3,390,602
Less special tax levies 1,184,706 1,080,266 953,673 914,199
Limited Levy $2,873 $2,513,830 $2,436,929 $2,476,403
Levy Limitation 3,374,009 3,236,481 3,005,q71 2,921,134
UNDER LEVY LIMITATION 500,098 722,651 569 ,042 444,731
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Mr. Splinter June 27, 1g88
The State Le islature enacted a"Fiscal Dis arit Law"
g p .y in 1971 which
was not implemented until taxes payable in 1975 because of a constitu-
tional challenge. The law provides for the �'pool.ing" of 40� of all
new commercial and industrial property valuation in the seven county
metropolitan area. Valuation from this "pool" is redistributed to
taxing jurisdictions according to specified criteria. The impact of
disparity law on the City is shown below. The City has, since the
inception of the law twelve years ago, con�ributed $26 in
assessed valuation. The fiscal disparities adjustments for the
fourteen years are as follows:
Year Assessed Value P�et Received
Taxes Value Contri- Received Or
Payable buted to "Pool" From "Pool" (Contributed)
1975 2,355,241 2,816,222 460,981
1976 3,746,879 3,880,301 133,422
1977 3,726,462 3,525,256 (201,206)
1978 4,856,260 3,666,177 (1,190,083)
1979 6,172,992 4,708,800 (1,464,192)
1980 8,086,801 6,254,605 (1,832,196)
1981 9,523,651 7,842,824 (1,680,827)
1982 13,677,348 11 ,319,718 (2,357,630)
1983 16,832,813 15,395>570 (1,437,243)
1984 21 ,050,949 17,684,493 (3,366,456)
1985 22,406,97g 20,272,766 (2,134,213)
1986 22,990,819 20,893,286 (2,097,533)
1987 24,500,455 23•�54.591 (1,345,864)
1988 33,254,405 25,105,724 (8,148,681)
14 YEAR TOTAL $193 ,182,054 $166 ,520, 333 $(26
The complete reporting of the General Fund financial operations and
position can be found in the General Fund section of this report.
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Mr. Splinter June 27, 1988
DEBT ADMINISTRATION
The ratio of net bonded debt to assessed valuation and the amount of
bonded debt per capita are useful indicators of the City's debt
position to municipal management, citizens, ancl investors. This data
for the City at December 31, 1987, was as follows:
Ratio of Debt to Ratio of Debt to
Assessed Present Debt Per
Amount Value Market Value Capita
Net direct
bonded debt $6,304,454 2.75� .68� $211
Outstanding general obligation bonds at Dec�mber 31, 1g87 totaled
$9,360,000, of which $1,500,000 was issued to provide permanent
financing for water, sanitary sewer, storm sewer and streets. The
repayment of these bonds is provided from the proceeds of special
assessments levied against the benefited property. Included also in
the outstanding G.O. Bonds were $240,000 of G.O. State Aid Street
Bonds which were issued to finance state aid projects and are repaid
from state allotments. Included also were $6,120,000 of G.O. Tax
Increment Bonds which were issued to finance th� public costs involved
in the development costs of the Brookwood housing development project
and the Earle Brown Farm redevelopment project and are repaid from
incremental taxes from the City's Tax Increment Financing District.
The remaining $1,500,000 is direct tax supported debt which is repaid
by the proceeds of ad valorem tax levies. During the past year,
$1,200,000 of general obligation bonds were issued and $2,475,000 were
retired.
Outstanding revenue bonds at December 31, 1g87 totaled $225,000.
These are bonds issued in 1963 for improvements to the water utility
and are repaid from the public utilities revPnues. During the past
year, $45,000 of revenue bonds were retired.
The City has a current Moody's Investors Service bond rating of "A-1".
More detai led information about the debt position of the City can be
found in the General Long-Term Debt section of this report.
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Mr. Splinter June 27, 1g88
CASH MANAGEMENT
Temporary surpluses of individual City funds are pooled and invested
in a uniform and consistent manner. These temporary surpluses are
invested in obligations issued by the United States and its agencies,
bank certificates of deposits, repurchase agreements, and City of
Brooklyn Center construction notes issued to provide temporary
financing for construction in the special assessment funds.
The a verage yield on investments during the year was 8.24� and
investment earnings totalled $2,018,741 for the year.
CAPITAL PROJECTS FUNDS
The Capital Projects Fund was established to account for monies re-
ceived from various sources (including transfers from the LCMR and the
Lawcon and the Community Development Special Revenue Funds) and
expended on certain major, permanent facilities. A listing of current
capital projects in the Fund can be found in Schedule S-3 of this
report. During 1987, Capital Projects Fund expenditures of $1,288,372
were made. Several other funds were closed and their remaining equity
of $1,523,207 was transferred to the Capital Projects Fund in 1987.
The Fund Balance at December 31, 1987 was $3,538,118. Of this amount,
$49 ,80g was reserved for unexpended appropriations, leaving an
unreserved Fund Balance of $3,488,309.
The Municipal State Aid for Construction Fund was established to
account for monies received from the Minnesota Department of Transpor-
tation and expended for transportation related construction projects.
The City expended $533,865 of municipal state aid for construction
during 1987. The Fund Balance at December 31, 1g87 was $4 ,606,895 of
which $2,022,872 was reserve�l for unexpended appropriations or was
restricted to State approved projects, leaving an unreserved Fund
Balance of $2,584,023•
Information about these funds� financial operations and positions can
be found in the Capital. Projects Funds' section of this report.
PUBLIC UTILITIES FUND
Comparative data for the City�s Public Utilities operations for the
past two fiscal years are shown in the following table:
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Mr. Splinter June 27, 1988
�987 1986
Water Department operating revenue 556 ,222 473 ,279
Sewer Department operating revenue 1,Og7,202 1,072,1g0
Water Department operating income (82,824) (233 ,414)
Sewer Department operating income (184,380) (134 ,437)
Water Department net income 319,043 243,021
Sewer Department net income 79 ,853 151,173
Water customers at year end 8,848 8,787
Sewer customers at year end 8,813 8,791
The Public Utilities operating revenues are to be used to finance
system maintenance and future expansion and improvements. Water reve-
nues increased in 1g87 because a drier than normal summer caused
residents to do more watering of lawns. The complete reporting of the
Public Utilities'financial operations and position can be found in the
Enterprise Funds' section of this report.
LIQUOR STORES FUND
ff-sale li u r stores e
The City s three munlcipal o q o arned a combined
net income of $145,646 for the fisca 1 year ended December 31 1987•
The Liquor Fund transferred $110,000 during the year to the Genera 1
Fund to assist in the financing of City operations. A condensed
comparison of the stores' 1g87 operations with those of 1986 follows:
1987 1986
Sales $2,527,159 $2,465,749
Cost of Sales 1,930,254 1,890,311
Gross Profit on Sales 59b,905 575,438
Operating Expenses 434,311 435,76.3
Net Operating Income 162,594 139 ,675
Interest and Other Income or (Expense) (16,948) (9,52�)
P1et Income 145,646 130,154
Transfers to the General Fund 110,000 100,000
-15-
Mr. Splinter June 27, 1g88
SPECIAL ASSESSMENTS
Special assessments are used to finance and account for the construc-
tion of certain public improvements such as residential streets, storm
sewers, sanitary sewers and water mains which are to be paid for
wholly or in part from special assessments levied against benefited
property. Effective January 1, 1g86, the City implemented Governmen-
tal Accounting Standards Board No. 6, whereby the special assessments
funds have been reclassified as capital projects or debt service
funds, as appropriate.
Construction expenditures of $405 were made from the funds in
1987.
GENERAL FIXED ASSETS
The general fixed assets of the City are those fixed assets used in
the performance of general government functions and exclude the fixed
assets of the Enterprise Funds (Public Utilities and Liquor). As of
December 31 1987, the genera 1 fixed assets of the City amounted to
$�5,990,707. This amount represents the original cost of the assets
and is considerably less than their present value. Depreciation of
general fixed assets is not recognized in the City's accounting system.
The complete reporting of general fixed assets can be found in the
General Fixed Assets Account Group Section of this report.
INDEPENDENT AUDIT
Section 7.12 of the City Charter requires that the City Manager's
annual report to the Council concerning the entire financial
operations of the City be audited. This requirement has been complied
with and the auditors' report has been included in this report.
-16-
Mr. Splinter June 27, 1988
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and
Canada (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City of Brooklyn Center for its
comprehensive annual financial report for the fiscal year ended
December 31, 1986.
In order to be awarded a Certificate of Achievement for Excellence in
Financial Reporting, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial
t 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 be 1 ieve our current report continues to conform to Certificate of
Achievement Program requirements, and we are submitting it to GFOA to
determine its eligibility for another certificate.
ACKNOWLEDGEMENTS
The preparation of this report on a timely basis could not be accom-
plished without the efficient and dedicated services of the entire
staff of the Department of Finance. I would like to express my
appreciation to all members of the Department. I would also like to
thank the Mayor, Council members and the City Manager for their
interest and support in planning and conducting the financial opera-
tions of the City in a responsible and progressive manner, and the
independent auditors for their valuable and willing assistance.
Respectfully submitted,
��w.
Paul W. Holmlund
Director of Finance
PWH:ps
1
-17-
Certificate of
1
Achlevement
for Excel_ence 1
in Financial
1
F�eporting
Presented to
1
City of
Brooklyn Center, Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1986
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
governmental units and public employee retirement
systems whose comprehensive annual financial
reports (CAFR's) are judged to substantially
canform to program standards.
P N�E OfFi� I WwC..�
�t��: 'OF iHE� 9
W �UNITED STAiES\ y
nNO N President
f t CANAOA f
y� CORPORATION
a
�t •`�,s ��.Q,,: r
�.�`NICAG� '���rj����
Executive Director
Deloitte
Haskins�
1
Suite 1000
625 Fourth Avenue South
Minneapolis, Minnesota 55415-1660
(612) 333-2900
ITT Telex: 4995620
AUDITORS' REPORT
I
Honorable Mayor and Members
of the City Council
City of Brooklyn Center, Minnesota:
We have examined the general purpose financial statements of the City
of Brooklyn Center, Minnesota, and the combining, individual fund, and
account group financial statements of the City as of and for the year
ended December 31, 1987, as listed in Section II of the table of
contents. Our examination was made in accordance with generally
accepted auditing standards and, accordingly, included such tests of
the accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, the general purpose financial statements referred to
above present fairly the financial position of the City of Brooklyn
Center, Minnesota, at December 31, 1987, and the results of its
operations and the changes in financial position of its propriety fund
types for the year then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the
preceding year, after giving retroactive effect to the changes, with
which we concur, in accounting for: certain improvements in the
general fixed assets account group, a deferred compensation plan,
special assessments, and certain capital outlay expenditures, as
described in Notes 4, 14, 15, and 16, respectively, to the financial
statements.
Also, in our opinion, the combining, individual fund, and account group
financial statements referred to above present fairly the financial
position of each of the individual funds and account groups of the City
of Brooklyn Center, Minnesota, at December 31, 1987, 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 applied on a basis
consistent with that of the preceding year, after giving retroactive
effect to the changes, with which we concur, in accounting for:
certain improvements in the general fixed assets account group, a
deferred compensation plan, special assessments, and certain capital
outlay expenditures, as described in Notes 4, 14, 15, and 16,
respectively, to the financial starements.
-2-
Our examination was made for the purpose of forming an opinion on the
general purpose financial statements taken as a whole and on the
combining, individual fund, and individual account group financial
statements. The accompanying financial information listed as schedules
in Section II of the table of contents is presented for purposes of
additional analysis and is not a required part of the financial
statements of the City of Brooklyn Center, Minnesota. Such information
has been subjected to the auditing procedures applied in the
examination of the general purpose, combining, individual fund, and
individual account group financial statements, and, in our opinion, is
fairly stated in all material respects in relation to the financial
statements of each of the respective individual funds and account
groups, taken as a whole.
;'j f^
,f
�p
Ma 27, 1988
Y
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financial statements are intended to provide a
financial overview of municipal operations. These reports are at a
summary level and include that data needed to control and analyze
current operations to determine compliance with legal and budgetary
limitations and to assist in the financial planning process.
i
1
1
1
1
1
1
1
1
1
City of Brooklyn Center F�iIBIT 1
All Fund Types and Accoimt Groups
CAFBIN m BALANCE SHEET (Continued next page)
December 31, 1987
Proprietary Fiduciary Totals
Goverrmental Fund Types Fund Type Fund Type Accotmt Groups (Memorandun Only)
Special Debt Capital rr General General Long- �Decenber 31,�
General Revenue Service Projects Enterprise Agency Fixed Assets Term Debt 19�7 1986
ASSETS
Cash and irrv estments (Note 2) 5,427,838 3,309,929 3,199,786 6,652,743 3,621,211 $22,211,5�'7 �23,508,849
Temporary impravanent notes (Note 3) 177,957 104,126 80,760 200,033 116 ,352 679,228 896,023
i Receivables:
o Accoimts 11,721 1,835 82,768 7,570 323,053 426,9�7 392,557
i Delir�quent Taxes (Note 1I) 67,314 969 �,769 73,052 446,178
Special assessnents:
Deferred 18,374 1,644,448 422,638 111,224 2,196,684 2,249,��7
Delinquent 1,398 37,881 8,037 3,209 50,525 �+5,507
Due fran other fLmds (Note 10) 70,734 70,734 377,025
Due fran other goverrments 31,495 76,133 1,612,88�+ 227,3�►3 1,9�+7,855 1,788,8�+�
Inventories and supplies (Note 1G) 44,644 269,73$ 314,382 323,7u6
Prepaid expenses 2,3b2 113,296 115,658 81,23$
Interfund advances 274,419 274,419 286,003
Restricted investments and other assets 4,128,775 �+,128,775 4,228,402
Investments for deferred canpensation
plan at market Note 1�+) 1,163,921 1,163,921 98b,985
Property, plant and equignent (Note 4) 16,988,933 �15,990,707 32,979,640 31,383,991
Less accunulated depreciation -�+,669,142 -4,669,142 -u,411,676
Amoimt available in Debt Service Funds 3,360,297 3,360,297 5,�+11,061
Amoi,mt to be provided for General Long-
Term Debt 6,326,192 6,32b,192 5,557,032 I
Total Assets 5,763,331 3,583,�98 5,050,412 9,178,324 $21,233,992 1,163,921 $15,990,707 9,686,489 $71,650,674 $73,551,208
r r r i i
City of Brooklyn Center FJQ-IIDIT 1
All Fund Types and Account Groups
COhBINm BALANCE SHEET (Continued fran prior page)
December 31, 1987
Proprietary Fiduciary Totals
Goverrmental Fund Types Fund Type Fund Type Account Groups (Memorandun Only)
Special Debt Capital General General Long- December 31,
General Revenue Service Projects Enterprise Agency Fixed Assets Term Debt 198'7 19t36
LIABILITIES AND FUND EJQUTTY
Liabilities
Accounts payable 240,257 14,5T7 3,017 60,126 116,992 434,969 671,854
Contracts payable (Note 16) 0 145,341
Due to other fi.mds (Note 10) 70,734 70,734 377,026
Accrued salaries and wages 153,142 15,544 168,686 180,351
Accrued vacation sick pay (Note 1J) 65,298 21,349 326,489 413,13b 393,193
Temporary improvement notes (Note 3) 679,228 679,228 907,611
Interfund advances 274,419 274,419 286,004
Deferred revenue 56,865 20,741 1,687,098 430,675 2,195,379 2,249,�+47
Revenue bonds payable (Notes 5& 6) 225,000 225,000 270,000
General obligation bonds payable (Note 5)
Special assessment bonds payable (Note 5) 1,740,000 1,740,000 2,020,000
Tax increment bonds payable (Note 5) 1,500,000 1,500,000 2,440,000
Assessnents on City property (Note 5) 6,120,000 6,120,000 6,175,000
i Deferred canpensation fimds held for
0 20,500
participants Note 14 $1,1b3,921 1,163,421 986,985
i
Total Liabilities 515,562 106,052 1,690,115 1,170,029 653,304 1,163,921 9,686,489 14,985,472 17,123,312
Fund Equity
Contributed capital 10,616,086 10,616,086 10,596,980
Invested in general fixed assets $15,99�,7�'T 15,990,707 15,050,066
Retained earnings:
Reserved: (Note 12)
Debt retirenent 128,775 128,775 131,735
Special assessnents 111,224 111,224 278,266
Plant expansion 4,000,000 4,000,000 4,000,000
Working capital 620,000 620,000 620,000
Unreserved 5,104,603 5,104,603 k,500,059
Fund Balances:
Reserved: (Note 12)
Inventories and prepaid expenses 47,006 47,006 51,212
Debt service 3,360,297 3,360,297 4,179,583
Unexpended appropriations 49,809 49,809 583,893
State a roved o'e t
r es
PP P J 2
,022,872 2,022,872 2,016,387
Unreserved:
Undesignated 5,200,763 3,477,446 5,935,614 14,613,823 14,419,T15
Total Fund Equity 5 24 6 4 446 6 w
7,7 9 3, 77, 3,3 0,297 8,008,295 20,580,688 0 15
,990,707 0 56,665,202 56,427,896
TOTAL LIABILITIES AND FUND EQUITY 5,763,331 3,583,498 5,050,412 9,178,324 $21,233,992 $1,tb3,921 $15,990,7oT 9,686,489 $71,650,674 $73,551,208 I
(See notes to financial statements)
City af Brooklyn Center EXHIDIT 2
All Goverrmental Fund Types
CAh�INm STATEI�NT OF RE.I/ENUES, IXPENDITURES, AND CHANGES IN FUND BALANCES
Year Ended December 31, 1987
Total s
(Memorandun Only)
Special Debt Capital
General Revenue Service Projeets 1987 1986
Revenues
Taxes and special assessments 2,5�1,016 429,�100 917,180 86,004 3,973,600 3,978,522
Licenses and permits 3�+5,019 3�5,019 411,406
Intergoverrmental 3,060,252 141,23�+ 97,381 555,636 3,85u,503 3,896,59$
Charges for services 1,11�4,203 37,040 1,151,243 99�,088
Court fines 269,903 269,903 224,753
Investment earnings 272,828 281,466 336,866 491,39$ 1,382,558 1,736,514
Sale a£ property 17,035 23,500 188,130 228,665 668,359
Miscellaneous 20,750 52,050 4,467 9,800 87,067 132,463
Total Revenues N 7,641,006 964,690 1,355,89�+ 1,330,968 11,292,558 12
Expenditures
Current:
General goverrment 1,532,185 670,985 2,203,170 3,011,442
Public safety 2,604,773 2,604,773 2,288,062
Public Works 1, 552,532 1,552,532 1,549,584
Caumt.mity health services 48,185 48,185 �5,29�
Parks and recreation 1,597,901 1,597,901 1,405,020
i Noo-Departmental 313,860 41,418 355,278 378,688
N Capital outlay 1,898,210 1,898,210 1,959,�02
i Debt service:
Principal retirement 1,304,925 1,3��►,925 600,000
Interest and fiscal charges 1,017,925 1,017,925 732,806
Total Expenditures 7,649,�36 670,985 2,322,850 1,939,628 12,582,899 11,970,298
Excess/Deficiency(-) Revenues Over Expenditures -8,430 293,705 -966,956 w ��-608,660 -1,290,3�1 72,�05
Other Financing Sources or Uses(-)
Proceeds of General Obligation Bonds 1,200,000 1,200,000
Operating transfers in 166,888 91,141 405,255 376,�453 1,039,737 968,532
Operating transfers out -563,167 -366,570 -929,737 -$30,246
Payment to escraa agent -1,170,075 -1,170,075
Total Other Financing Sources or Uses(-) 166,888 -472,026 435,180 9,883 139,925 138,286
Excess or Deficiency(-) of Revenues and Other
r Sources Over Expenditures and Other Uses 158,458 -178,321 -531,776 -598,777 -1,150,416 210,691
-----M_�_
Fund Balance January 1 5,095,879 3,659,98b 5,411,061 7,083,864 21,250,790 21,040,099
Decrease in reserve for irroentories and prepaids -6,568 -6,568
Equity trarrf'ers -4,219 -1,518,988 1,523,207 0
Fund Balance December 31 5,247,769 3,�+77,�+46 3,360,297 8,008,294 $20,093,806 $21,250,790
(See notes to financial statements)
i r r
City of Brooklyn Center EXHIDTT 3
General and Special Revenue Funds
COhBINID STATEI�NT OF REUENUFS, IXPENDITURFS, AND
CHANGFS IN FUND BALANCES BllDGET (GAAP BASIS) AND ACTUAL
Year Ended December 31, 1987
General Fund Special Revenue Funds
Actual Over rY Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Property taxss 3,004,860 2,541,016 -463,844 433,890 �i29,400 -4,490
Licenses and permits 327,461 3�+5,019 17,558 0
Intergoverrmental 2,99b,�3� 3,060,252 63,818 140,000 1�11,234 1,234
Charges for services 1,116,676 1,114,203 -2,473 37,000 37,040 40
Court fines 180,000 269,903 89,9�3 0
Miscellaneous 305,765 310,613 4,848 228,571 357,016 128,445
Total Revenues
7,931,196 7,641,006 -290,190 839,461 964,690 125,229
Expenditures
N Current:
General gov errment 1,662,346 1,532,185 -130,161 1,2�10,908 670,985 -569,923
i Public safety 2,732,747 2,604,773 -127,97� 0
W Public works 1,732,755 1,552,532 -180,223 0
Community health services 50,000 48,185 -1,815 0
Parks and recreation 1,673,776 1,597,901 75,875 0
Non-Departmental 483,025 313,860 -169,165 0
Total Expenditures 8,33�+,649 7,649,�►36 685,213 1,240,908 670,985 569,923
Excess or Deficiency(-) of Revenues Over Expenditures -403,453 -8,�30 395,023 -401,447 293,705 695,152
Other Financing Sources or Uses(-)
Operating transfers in 153,�+53 166,888 13,435 167,000 91,141 -75,859
Operating transfers out 0 -446,890 -563,167 -116,277
Total Other Financing Sources or Uses(-) 153,�53 166,888 13,435 -279,890 -�472,026 -192,136
Excess or Deficiencyt-) of Revenues and Other
Sources Over Expenditures and Other Uses -250,000 158,458 408,�+58 -b81,337 -178,321 503,016
I
Fund Balance January 1 5,095,879 5,095,879 0 3,659,986 3,659,986 0
Decrease in reserve for inventories and prepaids -6,568
Equity transfers -4,219 -4y219
Fund Balance December 31 4,845,879 5,247,769 408,�158 2,974,430 3,477,446 503,016
(See notes to financial statements)
City of Brooklyn Center EXHIBIT 4
Pr opr i eta ry Fun d Ty pe
COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1987
Funds
_____________e__
1 987 1986
Qperating Revenues
Sales and user fees 4,180,583 4,011,218
Cost of sales 1, 930,254 1,890,?11
Total Operating Revenues 2,250,329 2,120,907
Operating Expenses
4
Personal services 99,670 501,351
Suppl ies 126,857 39,756
Other services 1,065,024 1,108,822
Insurance 37,918 41,793
Utilities 160,085 144,063
Rent 207,920 197,393
Depreciation
Total Operating Expenses 2,354, �,3�9,��3
Qperating Incom e or Loss(-) -104,610 -228,176
Non-Operating Revenues or Expenses
earnings 636,183 757,644
Special assessments 39,389 11 ,971
Other revenue or expense(-) 8,232 16,658
Interest and fiscal agent fees -34,�52 -37,206
�_'_"9 �7
�'on-Operating Totals 64g, 152 74 06
Income Before Operating Transfers 544,5�2 520,8g1
Qperating Transfers In 3,457
Operating Transfers Out(_)
Net Incom� 43�,54z 424,348
Retained Earnings January 1 9,530,06Q 9,105,712
Retained Earnings Becember 31 _�_9 ,964,b02 s 9,530,060
(See notes to financial statements)
-24-
City of Brooklyn Center EXHIBIT 5
Proprietary Fund Type
COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION
For the Year Ended December 31, 1987
Enterprise Funds
1987
Sources of Financial Resources
Cperations:
Net income for year 43�,542 424,348
Add: Items not requiring current outlay
depreciation 257,�65 315,822
Total Resource� Provided by Operations 692,007 740,170
Contribution toward construction 19,106 83,306
Decrease in restricted assets 18,090 70,122
Total Sources 7�9,203 893,598
Use cf Financial Resources
w Purchase of properties! 655,007 446,411
Payments to retire bonds 57,609 56,585
T�tal Uses
h'et Increase or Decrease(-) in Working Capital 16 ,587 390,602
====-e��===
Elements of Increase ar Decrease(-) in
Working Capital
Cash and investments -27�t,370 273,040
Temporary improvement notes 116,352
Accounts receivable -7,907 1G,177
Accrued revenue 24,451 -432
Assessments receivable 15,'T26 -577
Due from otrer government: -52 67,810
Inventories -2,796 18,175
Prepaid expense 32,058 5,136
Accounts payable -20,732 123,702
Contracts payable 13�,239 -92,258
Due to other funds 36,363 108,302
Due to ather goverments 5,792
Accrued liabilities 16,619 8,296
Currer�t portion of long-term debt i__`P_l 941
Net Increase or Decrease(-) in Working Capital 16,587 390,602
+--l- (See�notes to statements� Y==!!=_==l=i
-25-
Cit,y of Brooklyn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEP✓IBER 31, 1987
Note 1: Summary of Si�nificant Accountin� Policies
A. Reportin� Entity
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 governing 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 included or excluded from the City's fi-
nancial statements, as follows:
Included:
Housing and Redevelopment Authority in and for the City of
Brooklyn Center (HRA).
HRA was created by the City to provide housing and
redevelopment assistance to Brooklyn Center citizens.
The HRA provides this assistance through the admini-.
stration of various programs. Inasmuch as the HRA's
governing board is appointed by the City Council, the
Council reviews and approves HRA tax levies, the City
provides major community development financing for HRA
activities, and the City Manager is the Executive
Director, the HRA is considered to be a component unit
of 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
-26-
Note 1: Summary of Si�nificant Accountin� Policies (continued)
A. Reportin� Entity (continued)
such members in accordance with Minnesota statutes. The
board of directors is elected by the membership of the or-
ganization. All funding is conducted in accordance with
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-
cause the association is able to fund its programs inde-
pendently of the City, it is excluded from the reporting
entity. State Aid insurance premium tax in the amount of
$78,913 and ad valorem taxes in the amount of $41 were
receipted by the City and disbursed to the Association
during 1987.
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 Accountin�
The accounts of the City are organized on the basis of
funds and account groups, each of which is considered a
separate accounting entity. The operations of each
fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, 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 sgent and
the means by which spending activities are controlled.
The various funds are grouped, in the financial state-
ments in this report, into six generic fund types and
three broad fund categories as follows:
-27-
Note 1: Summary of �nificant Accountin� Policies (continued)
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.
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 priva�e 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.
FIDUCIARY FUNDS
Agency Funds Agency Funds are used to account for assets
held by the City as an agent for others.
C: Fixed Assets and Lon�-Term Liabilities
The accounting and reporting of fixed assets and long-
term liabilities associated with a fund are determined
by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow��
measurement, which means that only current assets and
current liabilities are generally included on 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
-28-
1
Note 1: Summary of �nificant Accountin� Policies (continued)
present a summary of sources and uses of "available
spendable resources" during a period.
Fixed assets used in governmental fund type operations
are accountd for in the General Fixed Assets Account
Group, rather than in the governmental funds.
E�fective January 1, 1g87, 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.
A11 fixed assets are valued at historical cost or esti-
mated historical cost if historical cost is unavail-
able. Donated fixed assets are valued at their esti-
mated value 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:
ENTERPRISE FUNDS
Water Sewer Liquor
Main/Lines 100 yrs 100 yrs
Structure/Improvements 30 yrs 25 yrs 3-10 yrs
Equipment 5-25 yrs 3-10 yrs
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.
D: Basis of Accountin�
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.
-29-
i
Note 1: Summary of Si�nificant Account Policies (continued)
Major revenues that are susceptible to accrual inclu�e
taxes, special assessments, intergovernmental revenues,
charges for services, and �nvestment 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 accrual basis of accounting when the related fund
liability is incurred, except for principal and
interest on general long-term debt which is recognized
when due.
All proprietary funds are accounted for using the
accrual basis of accounting. Their revenues are recog-
nized when they are earned, and expenses are recognized
when they are incurred. Unbilled Water and Sewer Fund
utility service receivables are recorded at year end.
E. Bud�ets and Bud�etary Accountin�
The City follows these procedures establishing the
budgetary data reflected in the financial statements:
1. By the �irst regular Council meeting in September,
the City Manager submits to the City Council proposed
o era in h f' a ear commencin the
p t g budgets for t e isc 1 y g
following January. The operating budgets include ex-
penditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer
comments.
3. The budgets are legally enacted through passage of
a resolution by the City Council not later than the
first week of October.
4. The City Council must authorize any transfer of
budgeted amounts between departments within any fund.
5. 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.
6. Al1 budget amounts lapse at� the end of the year to
the extent they have not been expended.
-30-
t
Note 1: Summar of Si n'
y_ g ificant Accountin� Policies (continued)
E. Bud�ets and Bud�etary Accountin� (continued)
7. Formal budgetary integration is employed as a
management control device during the year for the
Gene.ral 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 ir�denture pro-
visions. Budgetary control for Capital Projects Funds
is accomplished through the use of project controls.
8. Budgets for the General and Special Revenue Funds
are adopted on a basis consistent with generally
accepted accounting principles.
g. 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 departments are not allowed to exceed
budgetary expenditure totals for the department.
10. Budgeted amounts are as originally adopted, or as
amended by the City Council. Individual amendments
were not material in relation to the orginal appropri-
tions,
F. In�estments
Cash balances from all funds are combined and invested
to the extent available in authorized investments (see
Note 2). Earnings from such investments are allocated
to the respective funds on the basis of applicable
cash balance participation by each fund. Temporary
cash investments are stated at cost which approximates
market.
G. Inventory
Inventories are valued at the lower of average cost or
market based on physical counts.
H. Total Columns on Combined Statements
Total columns on the Combined Statements are captioned
Memorandum Only to indicate that they are presented
only to facilitate financial analysis. Data in these
columns do not present financial position, results of
operations, or changes in financial position in con-
formity with generally accepted accounting principles.
Interfund eliminations have not been made in the
1 aggregation of this data.
-31-
Note 1: Summary of �nificant Accountinp Policies (continued)
I. Property Tax
Property tax levies are set by the City Council in
October of each year, and are certified to Hennepin
County for collection in the following year. In
Minnesota, counties act as collection agents for all
property taxes.
The County spreads all levies over taxable property.
Such taxes become a lien on January 1 and are record-
ed as receivables by the City at that date. Revenues
are accrued and recognized in the year collectible, net
of deliquencies.
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 F'ebruary, April,
June and November.
Taxes which remain unpaid at December 31 are classified
as delinquent taxes receivable and are fully offset by
deferred revenue because they are not known to be
available to finance current expenditures. No 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 5�, whichever is
greater, further indexed by the percentage increase in
households or population, whichever is greater. Levies for
bonded indebtedness are not limited by this law.
J. Accumulated Unpaid Vacation and Sick Pay
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 in the Enterprise Funds. For the General
Fund, the amount to be funded in future years is recorded
in the General Long-term Debt Account Group.
K. Reclassifications
Certain 1986 accounts have been reclassified to conform to
the 1987 presentation.
-32- t
Note 2: Cash and Investments
A. Deposits
��I, 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.
P•linnesota Statutes require that all City deposits
be protected by insurance, surety bond, or collateral.
The
market value of collateral pledged must equal 110�
I of the deposits not covered b insurance or bonds
Y
(140% in the case of mortgage notes pledged).
Authorized collateral includes the le al in s
g ve tments
described below, as well as certain first mortgage
notes, and certain other state or local government
t 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 furnishing the collateral.
At December 31, 1987 the carrying amount of the City's
demand deposits was $21,422 and the bank balance was
$2�3 Of the bank balance, $101 was covered
by federal depository insurance (risk category 1) and
the remainder by collateral held in the pledging bank's
trust department in the City's name (risk category 2).
Risk Category
(1) Insured or collateralized by securites held
by the City or its agent in the City's name
(2) Collateralized with securities held by the
pledging institution's trust department
in the City's name
�3) Uncollateralized or collateralized with
securities held by the pledging institution,
but not in the City's name
Categories 2 and 3 are not procedures that are author-
1 ized by Minnesota Statutes; however, due to the effects
of cash flows, the City's deposits have temporarily
fallen into these categories.
-33-
Note 2: Cash and Investments (continued)
Amounts in category 3, as defined above, were significant
at certain times during the year due to higher cash flows
arising from property tax collections or the receipt of
state aids.
B. Investments
The City may also invest idle funds as authorized by
Minnesota Statutes, as follows:
(a) Direct obligations or obligations guaranteed by
the United 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-
scribed 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.
-34-
Note 2: Cash and Investments (continued)
Balances at December 31, 1g87:
Credit Risk Category Carrying Market
Securities Type 1 2 3 Amow�t Value
U. S. Goverrments 7,052,966 7,052,966 7,015,802
Federal Agencies 14,765,257 3,039,602 17,804,85g 17,888,393
Commercial Paper 1,045,880 1 045 880 1 04 04
5,5
None 22,864,103 3,039,602 25,903,7 05 25,949,699
Total Deposits (Note 2-A) 21,422
Total Cash and Investments 25,925,127
Other Assets Def erred Compensation Plan 1,163,921 1,163,921
The City's investments are categorized above to give an indica-
tion of the level of risk assumed at year-end. Category 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 includes 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.
The City did invest in repurchase agreements during 1987, al-
though none were held at year-end.
Note 3: Temporary Improvement 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 $679 ,228 and $896 ,023 at December 31, 1987 and
1986 respectively. For collection purposes, all of these
notes are considered current.
-35-
Note 4: Fixed Assets
Changes in the General Fixed Assets account group during
19�7 were as follows:
Balance Balance
January 1, December 31,
1987 Additions Retirement 1987
Land 1,427,531 1,427,531
Buildings 5,587,524 420,591 6,008,115
Park Properties 3,832,832 159,587 3,992,419
Furniture 418,810 51,937 470,747
Departmental equipment 3,783,369 433,086 124,560 4,091,895
Total General Fixed
Assets $15,050,066 $1,065,201 124,560 $15,990,707
Effective January 1, 1987, the City adopted a policy of excluding from
general fixed assets certain "improvements" which included capitalized
expenditures for roads, bridges, curbs and gutters, streets, side-
walks, and drainage systems, amounting to $18,251, Such assets
immovable and of value only to the City; therefore, cumulative ac-
countability is not considered necessary.
Amounts excluded:
ASSETS
Storm sewers and streets $18,25�
SOURCES OF INVESTMENT
General indebtedness 532,231
Special assessments 13,185
Capital projects fund balance 4, 534,033
$18,251
i
i
-36-
1
Note 4: Fixed Assets (continued)
Utility Plant in Service
Balance Balance
January 1 December 31
1987 1987
Water Department
Mains and lines 7,091,962 7,570,370
Structures 2,213,096 2,517,340
Equipment 176 ,657 176,894
Land 24,816 24,816
TOTAL WATER DEPARTMENT 9 ,506,531 10,289,420
Sewer Department
Mains and lines 4,943,369 4,968,191
Structures 1,034,465 1,034,465
Equipment 176,657 176,894
TOTAL SEWER DEPARTMENT
6,154,491 6,179,550
Construction in Progress 156,545 -0-
TOTALS 15,817,567 16,468,970
Liquor Fund Fixed Assets
Balance Balance
January 1, December 31,
1987 1987
Land 106,776 106,776
Equipment 153,365 �56,970
Leasehold 39,670 39,670
Buildings 216,547 216,547
TOTALS $____519,963
-37-
Note 5: Lon�-Term Debt
The following is a summary of bond transactions of the City
for the year ended December 31, 1987:
General G.O. Tax Water
Obl igation Increment Impravement Revenue
Bonds Bonds Bonds Bonds Total
Bonds payable ~M~ Mw
January 1 2,020,000 6,175,000 2,4�40,000 270,000 $10,905,000
Bonds issued 1,200,000 1,200,000
Bonds retired M_ 280,000 55,000 2,140,000 �+5,000 2,520,000
Bonds pay abl e
December 31 1,7�{0,000 6,120,000 1,500,000 225,000 9,585,000
In addition to the bond transactions, sick and vacation
accruals increased from $312,593 in 1986 to $326,489 in 1987
and assessments on City property decreased from $20,500 in
1986 to none in 1987.
General Obli�ation Bonds
General Obligation Bonds are recorded in the General
Long-Term Debt Group of Accounts and are backed by the full
faith and credit of the City.
Tax Increment Bonds
Tax Increment Bonds are recorded in the General Long-
term Debt Group of Accounts 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.
Improvement Bonds
These bonds are recorded as a liability in the General
Long-Term Debt Group of accounts 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.
-38-
Note 5: Long-Term Debt (contined)
Long-term debt maturities (including interest of $5 are as follaas:
General G.O. Tax Water
Obligation Increment Improvement Revenue
Bonds Bonds Bonds Bonds Total
1988 �+19,6� 538,688 364,193 53,775 1,376,336
1989 408,795 5�8,888 303,385 52,020 1,313,0 88
1990 257,175 591,838 266,979 50,265 1,166,257
1991 398,4�5 592,650 246,775 48,510 1,286,380
1992 334,810 645,488 168,260 46,755 1,195
1993 on 321,780 8,466,227 425,851 9,213,858
2,140,685 $11,383,779 1,775,443 251,325 $15,551,232
Long-term debt obligations outstanding at year-end are sunmarized as follaas:
Bond
Payment Issue Maturity Authorized
Rates Dates Date Date And Issued Retired Outstanding
General Obligation Bonds
G.O. State-Aid Street Bonds 5.5-6.75 3-01 9-01 09-01-70 03-01-91 1,050,000 810,000 240,000
1969 Building Impr Bonds 6.5 1-01 7-01 07-01-69 01-01-90 2,280,000 1,980,000 300,000
198� Park Improvenent Bonds 7.0-8.0 2-01 �01 09-01-80 02-01-93 __1,500,000 300 __1,200,000
Total 4,830,000 $3,090,000 1,740,000
Tax Increnent Bonds
1983 G.O. Tax Incr Bonds 6.5-9.0 2-01 8-01 11-01-83 02-01-97 930,000 60,000 870,000
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 60,000 6,120,000
Improvement Bonds
1969 Improvement Bonds 6.5 1-01 7-01 07-01-69 01-01-89 755,000 735,000 20,000
1970 Improvement Bonds 5.5-6.75 1-01 7-01 07-01-70 01-01-90 2,250,000 2,210,000 40,000
1976 Improvement Bonds 4.5-5.4 2-01 8-01 10-18-76 02-01-91 980,000 740,000 240,000
198'7 Refunding Bonds 3.9-5-5 2-01 8-01 02-23-87 02-01-97 1,200,000 0 1,200,000
Total 5,185,000 $3,685,000 1,500,000
Water Revenue
Revenue Bonds of 1963 3.75-3.9 1-01 7-01 07-01-63 01-01-93 1,000,000 775,000 225,000
-39-
Note 5: Lon�-Term Debt (continued)
On April 1, 1g87, the City issued $1,200,000 in General
Obligation Bonds with an average interest rate of 5.06 per-
cent to advance refund $1,825,000 of outstanding 1982
Improvement Bonds with an average interest rate of 9.02
percent. The net proceeds of $1,170,075 (after payment of
$2g in underwriting fees, insurance, and other issuance
costs) plus an additional $867 of 1982 Improvement
Bonds sinking fund monies were used to purchase U.S. govern-
ment securities. Those securities were deposited in an ir-
revocable 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.
The City advance refunded the 1982 Improvement Bonds to
reduce its total debt service payments over the next 10
years by almost $405 ,835 and to obtain an economic gain
(difference between the present values of the debt service
payments on the old and new debt) of $141
-�o-
1 Note 6: Public Utilities Fund
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
for the purpose of protecting the bondholders' interest.
Paragraph 8 of the resolution provides for the segregation
of assets and the appropriation of retained earnings f or
debt retirement 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 Retirement Account
Accumulated amounts set aside to meet 1988
requirements for interest and principal:
Investments with accrued interest 53,775
Reserve account investments 75,000
Total Debt Retirement Account: 128,775
an interest
All bonds are sub�ect to redemption (call) on y
payment date in inverse-numerical order at par and accrued
interest.
1
1
1
t
-41-
Note: 7 Segnent Information
p----------•
Enter rise Funds Municipal Publie
Liquor Utilities
____Fund T___ Fund____ Total___
Operating Revenues 2,527,159 1,653,�24 �4,180,583
Depreciation Expense 16,752 240,713 257,465
Operating Incane (Loss) 162,59� (267,204) (104,610)
Operating Transf ers (out) (110,000) (110,000)
Net Income (Loss) 35,646 398 �+3�,542
Currect Capital Contributions 19,106 19,106
Property, Plant EquiXznent:
Additions 3,605 651,402 655,007
Deletions
Net Working Capital 248,310 4,159 ,153 4,407,463
Total Assets 703,244 20,530,748 21,233,992
Bonds and Other Long-Term
Liabilities Payable fran
Operating Revenues 261,810 180,Op0 441,810
Total Equity 322,593 $20,258,095 $20,580,688
r
-42-
Note 8: Defined Benefit Pension Plans Statewide
A. Plan Description
All full-time and certain part-time employees of the City of
Brooklyn Center are covered by defined benefit pension plans
administered by the Fublic Employees Retirement Association
of Minnesota (PERA}. The PERA administers the Public Employees
Retirement Fund and the Public Employees Police and Fire Fund
which are cost-sharing multiple-employer public employee re-
tirement systems. The payroll for employees covered by PERA
plans for the year ended December 31, 1987, was $4 ,049,065 the
City's total payroll was $4,458,859•
All full-time employees and certain part-time employees are
eligible to participate in the PERA plans. Public Employees
Retirement Fund members belong to either the Coordinated Fund
or the Basic Fund. Coordinated members are covered by Social
Security and Basic members are not. All police officers, fire
fighters and peace officers who qualify for membership by
statute are covered by the Police and Fire Fund. The PERA plans
provide pension benefits, deferred annuity, and death and dis-
ability benefits. Benefits are established by State statute.
Retirement benefits for members of the Basic and Coordinated
Funds are as follows:
(a) When age plus years of service equal 90, the full un-
reduced normal annuity is payable.
(b) As early as age 55 with at least 5 years of paid service
credit; annuity reduced 1/4 percent for each month
under age 65•
(c) Any age with at least 30 years, reduced by 1/4 percent
for each month under age 62.
(d) Age 65 or older with at least one but less than 5 years
of paid service credit (proportionate annuity). Must
terminate service at age 65 or older.
(e) Age 55 with at least 5 years of paid service credit or
any age with at least 30 years representing PERA service
combined with other fund coverage.
Retirement benefits for members of the Police and Fire Funds are
as follows:
(a) When age plus,years of service equal 90, the full un-
reduced normal annuity is payable.
(b) Age 55 or older with at least 5 years' service credit.
(c) Age.55 or older with at least 5 years paid service credit
representing PERA service combined with other fund
coverage.
(d) Age 65 or older with at least 1 year of paid service credit
(proportionate annuity). Must terminate service at age 65
or older.
-43-
r
Note 8: Defined Benefit Pension Plans (continued)
A member who terminates public service with five or more years
of credited allowable service may leave his or her amount in
the fund to qualify for an annuity at retirement age. The
annuity as determined under the formula will be increased from
the first of the month following date of termination at pre-
scribed interest rates. The former member may accept a refund
at any time pri'or to the date retirement annuity begins.
The funds also provide various death and disability benefits,
whereby the disabled employee or surviving spouse is entitled
to receive amounts determined as defined by the funds.
B. Contributions Required and Made
Covered employees are requir'ed by State statute to contribute
fixed percentages of their gross earnings to the pensi.on plans.
The City makes annual contributions to the pension plans equal
to the amount required by state statutes. Current contribution
rates for the plans are as follows:
Additional
Employee Employer Employer
Public Employees
Retirement Fund:
Basic Fund 8% 8% 2 1/2%
Coordinated Fund 4� 4� 1/4%
Police and Fire Fund 8% 12% 0
Total contributions made during fiscal year 1g87 amounted to
$489,043 of which $277,774 was made by the City and $211
was made by employees. These contributions represented 5.2
percent (City) and 6.9 percent (employees) of the covered pay-
roll.
C. Funding Status and Progress
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 the PERA'S funding status on a going-concern
basis, assess progress made in accumulating sufficient assets
to pay benefits when due, and make comparisons among Public
Employees Retirement Systems and employers. The PERA does not
make separate measurements of assets and pension benefit obli-
gation for individual employers.
-44-
Note 8: Defined Benefit Pension Plans (continued)
The pension benefit obligations of the PERA as of June 30,
1987, were as follows:
Public Public
Employees Employees
Retirement Police
Fund Fire Fund
(in thousands)
Total pension benefit obligations $2,839,047 437 ,229
Tdet assets available for benefits,
1 at market 2,608,691 549,534
Unfunded pension benefit obligation
The actuarial calculations of annual contributions include
amounts that would be required to achieve full (100 percent)
funding by the year 2009.
The measurement of the pension benefit obligation is based on an
actuarial valuation as of June 30, 1987. Net assets available
to pay pension benefits were valued as of June 30, 1g87.
The City's contribution for the year ended June 30, 1987, to
PERA plans represented 0.2g8 percent of total contributions re-
quired of all participating entities.
Ten-year historical trend information is presented in PERA's
State PERS Comprehensive Annual Financial Report for the year
ended June 30, 1987• This information is useful in assessing
the pension plan's accumulation of sufficient assets to pay
pension benefits as they become due.
D. Related Party Investments
During 1987 and as of June 30, 1987, PERA held no securities by
the City or other related parties.
-45-
Note 9: Defined Benefit Pension Plan Brooklyn Center
Fire De artment Relief Association
P
A. Plan Description
The City contributes to the Brooklyn Center Fire Department
Relief Association ("Association"), a 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
$300 per month after 20 years of service and attaining the age
50. There are additional benefits for service through 25 years
with a maximum of $375 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 35% of the
benefit they would otherwise qualify for. Spouse's, children's
and funeral benefits are also provided. These benefit provi-
i sions and all other requirements are consistent with enabling
state statutes.
The City levies property taxes at the direction of and for the
benefit of the association plan and passes through state aids
allocated to the plan, all in accordance with enabling state
statutes.
B. Fundin Status and Fro ress
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-
areases, estimated to be payable in the future as a result of
service to date. The measure is the actuarial present �alue 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.
-46-
1
Note 9: Defined Benefit Pension Plan (continued)
The pension benefit obligation was determined as part of an
actuarial valuation at December 31, 1987. Significant ac�u-
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.
On December 31, 1987, the unfunded pension benefit obligation
was as follows:
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,247,677
Current Employees
Employer-financed vested 664,434
Employer-financed nonvested 43 ,574
Total pension benefit obligation 1 ,955,685
Net assets available for benefits 1, 946,629
Unfunded pension benefit obligation
No changes in actuarial assumptions or benefit provisions that
would significantly affect the valuation of the pension benefit
obligation occurred during 1987.
1
1
1
-47-
Note 9: Defined Benefit Pension Plan (continued)
C. Contributions Required and Contributions Made
Financial requirements of the association plan are determined
on an actuarial basis using the entry age normal actuarial cost
method. Normal cost is funded on a current basis. The unfunded
actuarial accrued liability is to be funded by December 31. 1
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
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
basis.
Total contributions to the plan in 1g87 amounted to $120,656, of
which $41,743 and $78,913 were made by the City of Brooklyn
Center and the State of Minnesota, respectively. The contribu-
ted amounts were actuarially determined as described above and
were based on an actuarial valuation as of December 31, 1984.
The contributions represent funding for normal cost of $45
and the amortization of the unfunded actuarial accrued liability
of $46�985.
Significant actuarial assumptions used to compute pension con-
tribution requirements are substantially the same as those used
to determine the standardized measure of the pension obligation.
The computation of the pension contribution requirements for
1987 was based on the same actuarial assumptions, benefit pro-
vision, actuarial funding method, and other significant factors
used to dete�rmine pension contribution requirements in previous
years.
D. Related Party Investments
During 1987 and as of December 31, 1987, the as�ociation held j
no securities issued by the City or other related parties.
E. Ten-Year Historical Trend Information
Ten-year historical trend information related to the pension
plan is presented in the Association's annual financial report.
The information is presented to enable the reader to assess the
progress made by the Association plan in accumulating suffi-
cient assets to pay pension benefits as they become due.
-48-
Note 10: Interfund Receivables and Payables
Individual interfund receivable and payable balances
at December 31, 1987, were as fallows:
Interfund Interfund
Special Revenue Funds: Receivables Payables
Community Development Block Grant 70,734
Housing and Redevelopment 70,734
70,734 ?0,734
Note 11: Contin�encies
There are several lawsuits pending in which the City is
involved. City Management estimates that the potential
claims against the City not covered by insurance resulting
from such litigation would not ma�erially affect the finan-
cial statements of the City.
Note 12: Reserved Fund Equity
Reserved:
General Fund:
Inventories and prepaid expenses 47,006
Debt Service Funds:
Debt service 3,360,297
Capital Projects Funds:
Unexpended appropriations 49,809
State approved projects 2,022,872
Note 13: Individual Fund Disclosures
Deficit fund balances exist in the followin$ funds:
Capital Projects Funds:
i Special Assessment Construction 136,718
This deficit will be funded when bands for
authorized projects are issued.
-49-
Note 14: Deferred Compensation Plan
The City offers`its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section
457. The plar�, available to all City employees, permits
them to defer a portion of their salary until future years.
The deferred compensa.tion is not available to employees
until termination, retirement, death, or unforeseeable
emergency.
All amounts of cor�pensation deferred under the plan, all
prop and�rights purchased with those amounts, and all
income attributabl'e to thase amounts, property, or rights
are {un�il paid or. made available to the employee or other
beneficiary) solel� 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: o� general'creditors of the City in'an amount
equal �o the .fair �arket value of the deferred account for
each par�ici.pant.
It is the o inion of the Cit 's le al couns 1 tha
P
Y
g
e t the Ci
t
Y
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. Plan assets and
related liabilities at that date were $986,985 and the
financial statements have been restated to include such
amounts. There was no effect on fund equities as a result
of this change. Plan assets are stated at market.
-50-
Note 15: Chan�e In Accountin� For Special Assessments
The City has implemented the provisions of Statement No. 6
of the Government�.� Accounting Standards Board, Accountin�
and Financial R�portin� for Special Assessments. In the
past, special assessments (improvement) projects and related
debt were accour�ted for in speGial assessment funds in a
separate fund type. Statement No. 6 prqvides that such
projects are to be accounted for ir� capital prp�ec�S funds,
�nd the genez�al oLligation debt is to be accounted fQr in
the general long-term debt account group anc� related debt
service fu�nds.
The change in accounting for special assessments has been
applied retroactively in �he accompanying financial stateT
ments. The effect of the change was to eliminate the
special assessment funds, increase the Janu�ry 1 1g86
fund balances in the debt serv�ce fund.�ype }�y $3
rec�uce the January 1, 1986 fund balaMCes in the capital
prajects fund type by $367,391 and trans��r the �pecial
assessment (improvement) bonds outstanding of $2,765,OOQ
at January 1, 1986, to the general long-term debt account
group.
1
1
1
1 -51-
Note 15: Change in Accounting for Special Assessments (continued)
Individual fund balances were restated as follows:
As Previously
Reported As Restated
Fund On 1-1-86 On 1-1-86
Special Assessment Funds:
Improvement Bonds of 1959 �8) -0-
Improvement Bonds of 1960 20 -0-
Improuement Bonds of 1961 91 -0-
Improvement Bonds of 1963 484,370 -0-
Improvement Bonds of 1965 128,325 -0-
�mprovement Bonds of 1966 130,39$ -0-
Improvemen� Bonds of 1969 64,4g'8 -0-
Improvement Bonds of 1970 502,722 -0-
Improvement ,Bo,nds .of 1973 208,414 -0-
Improvement Bonds of 1976 84,389 -0-
Improvement Bonds of 1 Q82 1,051 ,4g1 -0-
Special Assessment Construction (367,391) -0-
Total 184,317 -0-
Debt Service Funds:
Improv ement Bonds of 1 959 -0- 28)
Improvement Bonds of 1960 -0- 20
Improvement Bonds of 1961 -0- 91
Improvement Bonds of 1963 -0- 484,370
Improvement Bands of 1965 128,325
Improvement Bonds of 1966 -0- 160,398
Improvement Bonds of 1969 -0- 12�,498
Improvement Bonds of 1970 -0- 582,722
Improvement Bonds of 1973 -0- 208,414
Improvement Bonds of 1976 454,389
Improvement Bonds of 1982 -0 _1,173,509
Total 3,316,708
Capital Projects Funds:
Special Assessment construction -0- (367,391)
i
-52-
Note 15 Change in Accounting for Special Assessments (continued)
Additionally, as a result of this change,.the excess of
revenues and other sources over expendi.tures and other uses
for the debt service fund type increasedf(decreased)
$(619,155) and 639,393 in 1987 and 1986, respectivsly,
and for the capital projects fund type increased/(deereased)
86,745 and $(59,7�1) in 1987 and 1986 respectively.
Individual fund� were affected as follows:
....Increase (Decrease).....
Fund 1987 1986
Debt Service Funds:
Improv ement Bonds of 1 959 89 1, 1 16
I m p r o v e m e n t o n d s o f 1 9 6 0 1, 11 1 9�5
Improv ement Bonds of 1 96 1 62) 51
Tmprovement Bonds. of 1963 �+3 ,798 48,429
Improvement Bonds of 1 965 11 ,380 12,800
Improvement Bonds of 1966 5,9�6 25,306
Improvement Bonds of 1969 1,825 24;5�7
Improvement Bonds of 1970 22,348 62,
improvement Bonds of 1 973 35,264 52, 140
2mprovement Bonds .of 1976 12,758 86,141
Improvement Bonds of 1982 753,612) ____3�5,549
Total 619,155) 639,393
Capital Projects Funds:
Special Assessment Construction 86,745 59,731)
-53-
Note 16: Prior Period Correction
In prior years,-the City recogMized certain capital outlay
expenditures at the �ime that the contract was let, rather
tY�an'as work progressed and a li'ability was incurred.° In
order to corr�ct �his practiGe, the=City has restated be
ginni,ng balances at Janu�'ry 1,°1986, and 1986 expenditures
a�= �oliows:
AS
Preuiously: As
Reported Restated
ra�ital Project Fund
Contracts payable 1-1-86 30,879 p
Fund balance 1-1-86 3,287,068 3,317,947
Capital outlays 1986 1,498,534 888,915
Contracts payable 12-31-86 F40,498 0
Fund balance 12-31-86 $2,263,982 $2,904,480
Special Assessment ConstructioM Fund
Accounts payable 1-1�8b 54,288: 5,151
Fund'balancc'1-1-86 -367,391 -318,254
Capital outlays 1986 541,838 387,317
Accounts payable 12 214,230 10,572
Fund balance 12-31-86 -427,122 -223,464
r
-54-
Note 17: Fund Changes
The following funds were opened during 1987:
Debt Service.
Refunding Bonds of 1987
Agency:
Employee Deferred Compensation
The following funds were closed during 1987:
Special Revenue:
Open Space Land Acquisition
Debt Service:
Park Bonds
Library Bonds
Improvement Bonds of 1959
Improvement Bonds of 1960
Improvement Bonds of 1961
Improvement Bonds of 1963
Improvement Bonds of 1966
Improvement Bonds of 1973
Improvement Bonds of 1982
Agency:
Fire Department Relief Association
-55-
City of Brooklyn Center, P�7inneaota
GENERAL FUND
The City of Brooklyn Center Home Rule Charter provides in Section 7.11
that ��there shall be maintained in the City Treasury a classification
of Funds which shall provide for a General Fund for the payment of
such expenses of the City as the Council may deem proper, and such
other funds as may be required by statute, ordinance or resolution".
The General Fund was established to account for all revenues and
expenditures which are not required to be accounted for in other
funds. It has more diverse revenue sources than other funds. These
revenue sources include property taxes, licenses, permits, fines and
forfeits, intergovernmental, service charges, rents, and investment
earnings. The Fund's resources finance a wide range of functions,
including the current operations of general government, public safety,
public works, health and welfare, recreation, and non-departmental
expenditures.
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.
1
City of Brooklyn Center A-1
General Fund
BAI.,ANCE SHEET
December 31, 19$7 and 1986
Total s
1987 1986
ASSETS
Cash and investments 5,427,838 4,768,853
Temporary amprov �nent notes 177,957 209,580
Accounts receivable 11,721 47 ,465
Taxes receivable 67,314 403,893
Bue fran other funds 112,121
Due fran other goverrments 31 ,495 41,835
Inv entory of suppl ies 44 64�4 51 212
Prepaid expense 2,362
TOTAL ASSETS 5,763,331 5,634,959
LIABILITIES AND FU ND BALANCE
Liabilities
Accounts gayable 2�40,257 270,400
Contracts �yable 8 ,391
Due to other funds 36,901
Accrued salaries payable 153,142 160,869
Accrued v acation and sick pay 65,2g8 62,
Deferred revenue 56,865
Total Liabil ities 515,562 539 ,�80
Fund Balance
Reserved: For inventories and prepaid expenses 47,006 51,212
Unreserved fund balance 5,200,763 5,044,667
Total Fund Balance w 5,247,769 __5 095 879
TOTAL LIABILITIES AND FU ND BALANCE 5,763 5,634,
(See notes to f inancial statements)
-56-
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, 1981
1987
Actual Over
or Under( 1986
Budget Actual Budget Actual
Rev enue s
Property taxes 3 2,541,016 $-463,844 2,566,220
Licenses and permits 327,461 345,019 17,558 411,406
Intergoverrmental 2,996,434 3,060,252 63,818 2,866,442
Charges for serv ices 1,116,676 1,114,203 -2,�+73 965,527
Court fines 180,000 269,903 89,903 224,753
Miscellaneous 305,765 310,613 4,848 318,453
Total Revenues 7,931,196 7,641,006 -290,190 7,352,801
t
Expenditures
General 1 ,662,346 1,532,185 -130,161 1,487,876
Public safety 2,732,747 2,604,773 -127,974 2,288,062'
Public works 1,732,755 1,552,532 180,223 1,549,58�+
Community and health services 50,000 48,185 -1 ,815 45,29�+
Parks and recreation 1,673,776 1,597,901 -75,875 1,405,020
Non-Departmental 483,025 313,860 -169,165 378,688
Total Expenditures 8,33�,6�9 7,649,436 -685,213 7,154,524
Exce ss or Def ici ency of
P,evenues Over Expenditures -403,453 -8,430 395,023 198,277
Other Financing Sources or Uses(
Cperating transfers in 153,453 166,888 13,435 3�+1,403
Total Other Financing
Sources or Uses(-) 153,�53 166,888 13,�35 341,403
Excess or Def iciency(-) of Revenues
and Other Financing Sources Over
Expenditures and Other Uses -250,000 158,458 408,458 539 ,680
Fund Balance January 1 5,095,879 5,095,879 0 4,556,199
Decrease in Reserve for Inventory -6,568
Fund Balance December 31 4,845,879 5,247,769 408,458 5,095,879
(See notes to financial statements)
-57-
City of Brooklyn Center �-1
General Fund
UCHEDIILE �F REVENUE AND OTHER FINANCING SOURCES (Continued next page)
BUDGET P.ND ACTUAL
For the Year Ended December 31, 19$7
1 �87
------------------------------Actual�Over
or Under(-) 19$6
Budget ^_r Budget
Ad Valorem Taxes
r Property taxes 2,964,860 2,529,752 435,108 2,553,692
Penalties and interest 40,000 11,264 -28,736 12,528
����r������ r����� ��r� ���I���r���a� ����������1�
Total Ad Valoran Taxes 004 860 2 541 016 �46 844 2 566 220
3 ------3�-__
Licenses and Permits
Liqunr and 130,450 131,748 1,298 141,895
Building permits 90,000 100,4g0 10,49p 155,023
Mechanical permits 21,000 �1,497 �97 23,124
Sewer and water permits 4,000 2,649 -1,351 3,873
P1 unbing permits 8,000 7,208 -792 13,27�
Electrical permits 19,000 16,102 -2,8g8 15,730
Food licenses 14,600 20,562 5,962 17,500
Rental dwelling permits 14,000 13 -435 11,366
Dog licenses 5,250 5,337 87 5,405
Garbage licenses 1,365 1,928 563 1,617
Taxicab licenses 5G0 915 415 1,060
�echanical licenses 2,500 3,782 1,282 2,695
Service station 1 icenses 1,640 �,722 82 1,483
Vehicle dealer licenses q00 950 50 945
B a a l i r, g l i c e n s e s 7 0 0 7 0 0 0 7 0 0
Cigat�ette licenses 732 9�5 193 809
Swirrur,ing pool licenses 2,820 2,805 -15 3,023
Sign permits 1,700 3,622 1,922 2,865
Lodging establishments �56 8U5 349 714
Miscellaneous business license 5,000 5,737 737 1,q39
All other licenses and permits 2,848 1,970 -878 6,369
Total Licerses and Permits r 327,�+61 345,019 17,558 411,406
Intergoverrm ental
Federal grants:
Miscellaneous grants 5,000 2g,626 24,626 11,709
1 Tatal Federal Grants 5,000 2,626 24,626 11,709
-sa-
City of Brooklyn Center S-1
General Fund
SCHEDULE OF REVENUE AND OTH ER FINANCING SOU RCES (Continued next page)
BUDGET AND ACT(JAL
For the Year Ended December 31, 1987
1987
t
Actual Over
or Under( 1986
Budget `ww__ Actual Budget Actual
Intergoverrm ental (continued)
State grants�
Local goverrment aid 2,083,365 2,080,670 -2,695 2,004,327
Hanestead credi t aid 736,156 736,156 0 675,095
Police pension aid 93 ,000 121,234 28,23� 93 ,065
Fi remen pension aid 78,913 78,9�3 0 71,067
Miscellaneous grants 13,653 13,653 11,179
-----5 ,733
Total State Grants 2, 991,434 3,030,626 ,1g2 2,8 4
Total Intergoverrmental Rev. 2,996,434 3,060,252 63,818 2,866,442
Charges for Services
Irter-Fund charges Admin.:
Public Utility Fund 172,000 169,384 -2,616 163,969
Liquor Fund 47,000 44,618 -2,382 42,743
Other Funds 31,436 31,436 9,014
Engineering and clerical fees 120,000 88 ,673 69 ,782
General goverrment charges 33 ,620 46,06q 12,44g 36,480
Publ ic safety charges 3,000 12,239 9,239 8,635
Recreatian fees 741 ,056 721 ,78�4 634,904
Total Charges for Services 1,116,676 1,114,203 -2,473 965, 527
Court Fines
Fines 180,000 --w 269,903 89,9�3 224,753
Total Court Fines 180,000 269,903 89,903 224,753
Miscellaneous
Rent 14,000 14,620 620 12,�+93
Interest on investments 275,OQ0 272,828 -2,172 292,394
Sale of property 17,035 17,035
Other 16,765 6,130 -10,635 13,566
Total Miscellaneous f___ 305,765 310,613 4,848 318,453 1
Total Revenue 7,931,196 7,641,006 -290,190 7,352,801
-59-
City of Brooklyn Center S-1
General Fund
SCHEDULE OF REVENU� AND OTHER FINANCING SOURCES (Continued fran
BUDGET AND ACTUAL prior page)
For the Year Ended December 31, 19�'7
1987
Actual Over
or Under( 1986
Budget Actual Budget Actual
Other Financing Sources
Qperating l transfers in:
Liquor Fund 110,000 110,000 0$ 100,000
H. R. A. Fund 43,453 43,�►53 0 51,403
1 M.S.A. Fund 13 :�+35 13,435
Revenue Sharing Fund 190,000
Total Other Sources ____153,�+53 166,888 13,�35 341,403
Total Revenue and Other Sources 8,08�t,649 7,807,894 -276,755 7,694,204
(See notes to financial statements)
1
1
1
1
-60-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1987 next page)
198'7
Actual Over
or Under(-) 1986
Budget Actual Budget Actual
General Goverrment
Mayor and�CounciT:
Personal services 25,039 18,103 -6,936 18,033
Services and other charges 71,976 59,�75 -12,301 7 3,124
-----97----
Total Mayor and Council ,015 77,77 19 ,237 91 157
Charter Canmission:
Services and other charges 1,500 702 -798 1,243
Total Charter Canmission 1,500 702 -798 1,243
Administrative Office -----r-----
Personal services 276,816 266,3�+3 -10,473 260,719
Services and other charges 31,900 18,878 -13,022 23,789
Capital outlay 800 706 13 ,088
Total Ac�ninistrative Office 3�9,516 285,927 -23,589 297,59b
Elections and Voter Registration:
Personal services 19,510 16,157 -3,353 16,125
Services and other charges 13,150 724 -12,426 3,298
Capital outlay 58,600 69,031 10,431
Total Elections 91,260 85,912 -5,3�� 19,423
Assessor's Off ice:
Personal services 166,375 149,583 -16,792 137,202
Supplies 3,045 2,168 -877 1,238
Services and other charges 5,790 4,076 -1,714 3,992
Capital outlay Q 473
Total Assessor's Off ice 175,210 155,827 19 383 142 0
Fi na nce
Personal services 256,808 248,274 -8,53� 240,687
Services and other charges 1,075 3,199 2,124 1,97 2
Capital outlay 675 639 -36 756
Total Finance 258,558 2 2,112 -6,446 243,415
-61-
I City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP B.ASIS) (Continued
For the Year Ended December 31, 1987 next page)
198'7
Actual Over
or Under( 1986
Budget Actual Budget Actual
General Goverrment (continued)
w Independent Audit:
Services and other charges 12,000 8,710 -3,290 11,130
Total Independent Audit 12,000 _8,710 11 130
Legal
Services and other charges 208,773 199,574 -9,199 166,486
I,
Total Legal 208 199 ,574 -9,199 166,4 86
Goverrment Buildings
Personal services 201,533 179,571 -21,962 181,254
Supplies 17,600 13,590 -4,010 17,807
Services and other charges 149,885 126,7 34 -23,151 118,182
Capital outlay 53,115 59,007 5,892 68,710
Total Goverrment Buildings 422,133 378,902 -43,231 385,953
Data�Processing---
Suppl ies and other charges 72,031 73,140 1,109 64,871
1 Capital outlay 14,350 13,601 -74g 63,6q7
Total Data Processing 86,381 86,741 360 128,568
Tatal General Gcverrment 1,662,3�46 1,532,185 -130,161 0 1,487,876
Publ ic Saf ety
Pol ice Protection:
Personal serv ices 1,741,57 9 1,690, -51,246 1,513,500
Supplies 36,400 26,326 -10,074 25,013
Services and other charges 158,256 142,861 -15,395 124,686
Capital outlay 64,085 62,500 -1,585 59,464
Total Pol ice Protection 2,000,320 1,922,020 8,300 1,722,663
Fire Protection:
Personal services 216,022 210,544 -5,478 194,626
Supplies 16,460 19,712 3,252 15,407
Services and other charges 28,854 24,898 -3,956 23,536
Capital outlay 172,200 149,198 -23,002 ,524
Total Fire Protection 433,536 404,352 -29,184 273
-62-
City of Brooklyn Center S-2
General Fund
SCHEI�JLE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1987 next page)
198'7
Actual Over
or Under( 19�
Budget Actual Budget Actual
Public Safety (continued)
Protective Inspection:
Personal services 198,776 190,681 8,095 184,801
Supplies 1,300 1,322 22 1,032
Services and other charges 11,090 11, 532 11,064
Capital outlay 6,430 4,582 -1,848 486
To�al Protective Inspection 217,596 208,207 -9, 197 ,383
Fmergency Preparedness:
Personal serv ices 45,514 40,842 -4,672 31,50$
Supplies 865 815 -50 563
Services and other charges 10,350 5,655 -4,695 2,715
Capital outlay 0 51,182
Total Emergency Preparedness 56,729 47,312 -g,417 85,968
Animal Control:
Personal services 6,221 6,412 191 3,838
Services and other charges 7,735 5,976 -1,759 5,117
Capital outlay _____10,610 10,494 ___116
Total Animal Control 24,566 22,882 -1,684 8,955
Total Public Safety 2,732,747 2,604,773 -127,974 2,288,062
Publ ic Works
En ineerin De rtment:
g g Pa
Personal services 378,958 325,371 53,58'7 321,595
Supplies 5,100 4,580 -520 4,128
Services and other charges 9,620 18 ,392 $,772 7,192
Capital outl ay 1,000 -1,000 12,767
Total Engineering 394 678 34$ 343 46 335 345 682
Street Department:
Personal services 458,700 429,600 -2q,100 432,549
Supplies 103,975 98,660 -5,315 76,715
Services and other ch�rges 127,001 104,662 -22, 104, g03
Capital outlay 102,650 95,59�+ -7,�56 122,544
Total Street 792,326 728,516 -63,810 736,711
M,aintenance Shop:
Personal services 135,916 127,687 -8,229 121,601
Supplies 174,700 13�,623 -40,077 147,359
Services and other charges 66,650 63,686 -2,964 54,312
Ca pital outl ay 1,915 2,761 846 5,167
Total Maintenance Shop 379 ,181 328,757 -50,424 328,439
-63-
City of Brooklyn Center S_2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued
For the Year Ended December 31, 1987 next page)
1987
i Actiaal Over
nr Under(-) 1986
Budget Actual Budget Actual
Traffic Signals and Lights:
Personal services 73$ 73$
Suppl ies 900 204 -696 290
Services and other charges 165,670 1�+5,974 -19,696 138,462
Total Traff ic Signal s 166,570 146,g16 -19,654 138,752
----73--7--
Total Public Works 1, 2, 55 1,552,532 180,223 1,549 584
Communi ty Heal th Serv ice s
Health Regulation:
Services and other charges 50,000 _____48,185 ______1,815 _____45,294
Total Health Inspection 50,000 48,185 -1 815 45,294
Total Community Health 50,000 48,185 -1 ,815 T 4,2g4
5
Parks and Recreation
Personal services 167,574 161,647 -5,927 149,067
Supplies 5 ,900 5,090 -810 6,002
Services and other charges 18,100 20, 99 2,499 16,078
Ca pi tal outl ay 0 1, 6 00
1
Total Achninistration 191,574 187 -4 238 172 747
Adult Progr�ns:
Personal services 61,776 71,061 9,285 52,301
Supplies 36,510 �42,235 5,725 43,727
Services and other charges 198,803 181,710 -17 135,
Capital outlay 500 _200 -300 25
Total Adult Programs 297,589 295,206 2,383 231,
Teen Programs:
Personal serv ices 3,9 8� 3,6�9 -371 2,623
Suppl ies 600 431 -169 491
Services and ather charges 1,600 1,150 -45Q 1,415
Capital outlay 600 595 -5 350
Total Teen Programs 6,780 5,785 -995 4,879
r
Children's Programs:
Personal services 48,359 41,661 -6,698 38,450
Suppl ies 9,950 8,2�+7 1,703 8,197
Services and other charges 10, 10,9 99 �9 9,547
Total Children's Programs _____6g,259 60,907 56 194
-64-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued fran
For the Year Ended December 31, 1987 prior page)
------------------------1987--------------
Actual Over
or Under( 1986
Budget Actual Budget Actual
Parks and Recreation (continued)
General Programs:
Personal services 30,051 23,041 -7;010 30,033
Supplies 1,805 7,275 5,470 11,112
Services and other charges 49,117 42,687 -6,430 32,378
Ca pi tal outl ay 1, 000 89 8 -102
Total General Progr�ns 81,973 73,901 8,072 73,523
Community Center:
Personal services 232,850 258,224 25,37�+ 224,264
Suppl ies 40,450 46,357 5,9�7 39,064
Services and other charges 149,000 131,4g1 -17,509 139,740
Capital outlay 50,470 53,007 2,537 12 187
Total Community Center 472,770 489,07g 16,309 415,255
Park Maintenance:
Personal services 345,866 287,662 58,204 275,473
Supplies 41,400 40,263 1,137 32,761
Services and other charges 77,900 76,743 -1,157 57,696
Capital outlays 88,665 81,019 -7,646 85,103
Total Maintenance 553,831 485,687 68,144 451,033
Total Parks and Recreation 1,673,776 1,597,901 -75,875 1,405,020
Non-Departmental
Expenditures not Charged to
Depart�ments:
Personal services 225,096 129,805 -95,291 142,9�5
Supplies 19,000 17,501 -1,499 18,029
Services and other charges 213,�95 141,448 -71,647 217,754
Capital outlay 25,834 25,106 -728
Total Non-Departmental 483,025 313,860 -169,165 378,688
Total Expenditures 8,334,649 7,649,�36 -685,213 7,154,524
(See notes to financial statements)
-b5-
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The Special Revenue Funds are established to account for revenues
derived from taxes and/or other specific revenue sources. These
resources are usually restricted by statute, City Charter or ordinance
to finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
a vailable and measurable. Expenditures are recognized in the account-
ing period in which the related liability is incurred.
Federal Revenue Sharin� Fund: This Fund was established to account
for funds received under the "State and Local Fiscal Assistance Act of
1972" as amended in 1976.
Public Em�lo�ees Retirement Fund: This Fund was originally
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 individual Fund.
Diseased Tree Removal Fund: This Fund was established to account for
the collection of resources and expenditure of these resources for
diseased tree control.
LCMR and Lawcon Fund: This Fund was established to account for land
and water conservation funds received from federal and state grants.
Transfers are made from this Fund to the Capital Projects Fund where
accounting for project costs takes place.
Community Development Block Grant Fund: The Fund was established to
account for funds received under Title I of the Housing and Community
Development Act of 1974 Transfers are made from this Fund to the
Capital Projects Fund where accounting for project costs takes place.
Housin� and Redevelopment Authorit.y Fund: This Fund was established
to account for the Housing and Redevelopment Authority (HRA) of
Brooklyn Center.
City of Brooklyn Center B-1
Special Revenue Funds
COhBINING BALANCE SHEET
Year Ended December 31, 19$T
Federal Public Diseased Car�a�ity Housing and
Revenue Fmplayees Tree LCMR and Developnent Redevelopnent
Sharing Retiranent Removal Lawcon Block Grant Authorit� 1987 1986
ASSETS
Cash and investments 26,442 693,152 4,096 92,500 12,182 2,481,557 3,309,929 3,508,330
Temporary improv anent notes 22,754 81,372 104,126 143,902
Accoi.mts receivable 1,835 1,835 10,083
Taxes receivable
Delinquent taxes 969 969 7,3�$
Deferred special assessnents 18,374 1g,374 2p,27$
Delinquent special assessnents 1,398 1,398 704
Due fran other funds 70,734 70,73�+ 149,783
Due fran other goverrments 5,399 70,734 76,133 53,7�i
i TOTAL ASSETS 26,442 T15,906 25,703 97,899 82,916 2,634,632 3,583,�9$ 3,89�,173
i
LIABILITIES AND FUND BALANCE
Liabilities N
Accounts peyable 14,577 14,577 20,287
Due to other funds 70,734 70,734 182,034
Deferred revenue 19,772 969 20,741 20,278
Constructions loans peyable 0 11,588
Total Liabilities 0 0 19,772 MM 0 70,73� 15,546 106,052 234,187
Fund Balances
�Unreserved 26,442 715,906 5,931 97,899 12,182 2,619,086 3,477,446 3,659,98b
Total Fund Balances 26,442 715,906 5,931 97,899 12,182 2,619,086 3,477,446 3,659,98b
TOTAL LIABIL.ITIES AND FUND BALANCES S 26,442 715,906 25,703 97,899 $2,916 2,634,632 3,583,�+98 3,894,173
(See notes to financial statements)
City of Brooklyn Center B-2
Special Revenue Funds
COhBINING STATEMENT OF REUEMI6, IXPENDITURFS, AND 4iANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued next page)
Year Ended December 31, 1987
Federal Revenue Sharing Fund Public Employees Retirement Fund
Over Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Property taxes
Intergov errmental
Federal grants
State grants
Total Intergoverrmental
Charges far services:
Fees
Adm ini. str ativ e
Total Charges for Services
Miscellaneous:
Investment'earnings 2,000 1,9b2 -38 55,000 54,504 -496
Other
M�-------
6 Total Miscellaneous 2,000 1,9b2 -38 55,000 54,504 -496
Total Revenues 2,000- 1,9b2 --38 M 55 ,000 5�,504 496
Expenditures
Personal services 4,500 4,127 373
Services and other charges 500 151 -3�+9
Total Expenditures 5,000 4,278 -7?2
Excess or Deficit(-) of Revenues Over Expenditures YM 2,000 1,962 -3$ M 50,000 M~ 50,226 226
Other Financing Sources or (Jses(-)
Operating transfers in
Operating transfers out
Total Other Financing Sources or Uses(-)
Excess or Deficit(-) of Revenues and Sot.u^ces Over
Expendttures and Other Uses 2,000 1,962 -38 50,000 50,226 226
Fund Balances January 1 24,480 24,480 665,680 665,680
Fquity Transfers Out
Fund Balances December 31 26,480 26,442 -38 715,680 715,906 226
(See notes to financial statements)
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�'43
Z� ��'J �T��ff
Ci.t3� af �rooklyn Ce�r B-�
�Cia1 Re�,a� F1�
OS'BIIVIP� SPA'�If CF' 1�yEN7E5, D�PDIIIF�.S, !�D Q�ll[J� IN EIAD BAI.�S RD�f ADD PL�.[IAL (Cmtit�.e�i frmm P��' F�)
Yeer EYrbd �enbe�' 31, 1567
Opa� �e La�d Aoq�ri.sitirn F1x�d Hasirg arrl Rec��el�t AutYxarity 'Ibta]s
O�er O�er O�er
tYr�r(-) ihder(-) 1�87 �9�7 [ix�r(-) 1�6
�t Acb�al �t Fix�t Actzal B�t &�t Pct�al Rz�t Ach.al
Re��s
PiopPrty ta�s 433,&J� 429,400 �4,49� 43j,e�D 429�� 4,4� 5T,�3
Ir�rg�xrnr�rtal:
F�ral 0 125�400 125.�A �`13 �.847
Sta� �ts 15�O�D 15,:� 15,000 15,3�5 3�5 13,9�
Ztrtal 15�� 15,:65 1q0,Q00 141,�34 1,z34 Zr9,779
Q� f� seLViaas:
Fbes �j,000 �,�T 35l �,034
Ackmnis-trati�e 2,m0 1,663 317 2,�7
Zbt�al Qar�s far Servioas 37,00� 37,0�0 40 �,561
Mi.soel7ar�as:
Tn��t eamir� �'1 3Z1 0 10D,�0 213,:OD 113,� 'IEB,�'I �'l,qEb 113:145 375�F�'f
Otipr 0 �,2;0 E5,946 14,FF6 F:O,e 0 75,}%0 15,�0 9�7,443
�tal Mi.soellar�s �'1 �'�'1 0 1Q,Z0 �D,446 1�,'196 2�.571 �T,016 1�,445 �3,Oa8
7.b1a1 Re�s�s 321 �I 0 E01,140 '725,211 12d,Q1`1 8'A,46� 964,�0 125,� 1,�8,711
l�rsa�al secvites 2,6�5 2,E�5 4,:OU 6,752 2,� 33,�34
�rices �d a13�r ctar�s 1,'195,9C8 63�,687 5�3�'1 9,Z6,4C�B G64.z33 fi2�'I75 1,49Dr4�
Tbtal �itzuas 1,1�,9C8 6�,312 -%6,93� 1,2q0.9�e 670,9g5 �3,�3 1,�3,:66
F�ess or �ficisx,y cff Re�,ea� O�ec� �ctiiiuss �'1 '�'1 0 �334,7�3 �,5� �O,E;67 4D1,447 �33�'lU Ff�j,1Q �sl,r'�
Oti�er �s�cirg Sauoes cc Llsas(-)
(�eratir�g trarsfers in 0 167,000 91,141 75,ffA 167,000 91,141 =75,8� 142,813
Operatirg tr-ansfers out 0 $�,�0 -q41,940 115,�0 --046,�0 �63,167 116,Z77 407,�3
Zbtal Other FYrsrr.irg Saunas c� Uses(-) 0 0 0 193� f0�'r�A -"�0,9a3 �i9� -�47Z,C�6 9�,1:6 -Z64,210
or D�iciaY,y of' Re�av� and Sa,a�as O�er
F.xpa�di� and ot3�r t7s�s i�1 �'1 0 =754,E�3 -�4,90� 4A,7�9 -E�1,337 178,�'I 503,016 -A83,�5
F1r�i �]arr,�as Ja'aacy 1 3 ,8�3 3�� 0 2,ST3,� 2,g73,5'86 0 3,FfA,S'66 3,693,�6 0 4,148,931
F�itY �ar�ers Q�t 4,2'►9 d,2'19 0 0 �,219 4,219 0
Ftx�d �]ames 0.�r 31 0 0 0 2,119��'B 2,619,C65 4A,758 �-'',974,4� $3,477,446 �03,016 $3��,:�
(S22 YY7�,-'S 1D firxirr.ial y��)
r �r
1
City of Brooklyn Center, Minnesota
DEBT SERVICE FUNDS
The Debt Service Funds were established to account for the payment
(from taxes and other resources) of interest and principal on long-
term general obligation debt.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the 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:
Park Bonds Debt Service Fund: This Fund was established to account
for the accurnulation of resources for payment of principal and
interest on general obligation bonds authorized by the electorate in
1957 to finance various park improvements.
Library Bonds Debt Service Fund: This Fund was established to account
for the accumulation of resources for payment of principal and
interest on general obligation bonds authorized by the electorate in
1964 to finance the construction of the City Library. The Library was
sold to Hennepin County during 1969 and the proceeds of the sale are
used for making principal and interest payments. The taxes levied for
debt redemption have been cancelled.
General Obli�ation State Aid Street Bonds Debt Service. This Fund was
established to account for the accumulation of resources, including a
combination of state aid allotments and special assessments, for
payment of principal and interest on bonds issued in 1g70 to finance a
comprehensive improvement and upgrading of those arterial streets
qualifying as state aid routes.
1969 Buildin� and Improvement Debt Service Fund: This Fund was
established to account for the accumulation of resources for payment
of principa 1 and interest on genera 1 ob 1 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.
Park Bonds of 1980 Debt Service Fund: This Fund was established to
account for the accumulation of resources for payment of priMCipal and
interest on general obligation bonds authorized by the electorate in
1980 to finance the improvement and eqipping of parks, parklands and
related public recreational facilities. These improvements include
neighborhood parks, Central Park, Palmer Nature Center, Shingle Creek
Trailway and the Arboretum.
Debt Service Funds(continued)
GPneral Obli�ation Tax Increment Bonds of 1983 Fund: This Fund was
established to account for the accumulation of resources for payment
of principal and interest on general obligation bonds issued in 1983
to finance purchase of land and installation of utilities for housing
for the elderly.
Genera 1 Obl igation Tax Increment Bonds of 1 g85 Fund: This Fund was
established to account for the accumulation of resources for payment
of principal and interest on general obligation bonds issued in 1985
to finance the purchase and redevelopment of the historic Earle Brown
Farm in Brooklyn Center.
Improvement Bond Funds: These funds were established to account for
the collection of special assessments for the payment of principal and
interest on general obligation bonds. The bonds were sold periodical-
ly to finance improvements deemed to benefit the properties against
which the assessments are levied.
Refundin� Bonds of 1987 Fund: This fund was established to account
for the collection of assessments for the payment of prin-
cipal and interest on general obligation bonds. The bonds were sold
during 1g87 to refund Improvement Bonds of 1g82.
(�ty cff �klyn Ca�her G�
L�bt Senriae Flxrls
&T�l� gEEP
�er 31, 1�87
1�FA Blcg Parit �x Itxx� Tax Im.c� I�ro�s'tt Io�cv�,�eit I�e�t Reflx�dir� �Yrta1s
Ia�'�t Bmds �t Bar� �rt Bm�s Ba�ris af Bar.� cff Ba�c�s af Pa�s of
Ba'r�s c8 'K3Bp c� 1983 c� 1995 "19E� 'Ig10 'Iq76 19�1 1�87 1�
A�
c�sh irnes�ts 452,C� 216,4A 493,'� 3�0,669 130,87� S E�,�e 4TZ,eC2 450,888 3, �99,786 5,193,�14
�acy inpro�s7t rrrt�s 14,�(77 15,Ui9 �,581 15,486 14,8U/ 80,'�0 133,149
Arxarrts rncei.vable �,768 �,'758 15,640
reaei�.able 2,3� 2,433 4,'r�A 31 �3
�aal ieoeiwiale:
ry 14,527 13,:C� 117,168 1,499,249 1,6q4,4q8 1,�7,2a3
2,9�3 5,461 2,0$ 27,e0e 37,eB'1 40,649
D�e II� at3�er ii.r�
6,034
A� 4�3,17'1 218,&:� 474,Z11 3�0,69j 147,� S E66,4C�1 E�,521 2,Q75,514 5,�,412 7,3�/,018
T7AATT.T'PTFS AM FlM BAL�S
v
O itahilitj
3,017 3,017 3.017
D� t� otY�r ftrr�s 5�E1/
�ferred ce�,sa� 2,3:6 2,433 17,C60 18,9� 119,z33 1,5�/,�51 1,687�0:8 1,�7�?A3
Zbt-al Liabilitias 2,3� 2,433 17,C6D S 18,9� 119,Z33 1,5:O,C�68 1,C�0,115 1,�35,�7
F1nd �l�
i 4E6,8� 216.4A 474.27"� 3�0,6e9 1:0,8"i0 647�433 486�� 545�446 3�:FA,�I 4,1'r�3,5S3
ihc�ttied 1�231,478
�btal Ft.nd �]arn�s 4E6,8� 216,4�3 474,27"1 3�0,69� 1A,SUi 647.43� 4�,� 545,446 3,3CO,297 5,411,061
�PAI, t.Taurr.rrr� AM FU�D BAL�S 4Ef�,171 218,8� 474,27'i 3�O,C� 147,�0 S E66,q04 S E(7T,521 2,075,514 5,(F0,412 7.347,018
(See nates to firnrnial sta-�anaits)
City of Brooklyn Center C-2
Debt Service Funds
CONBINING STATEMENT OF REVENUFS, EXPENDITURFS, AND CHANGFS IN FUND BALANCES
Year Ended December 31, 1987
State Aid 1969 Bldg Park Tax Incre- Tax Incr�
Park Library Street Improvsnent Bonds ment Bonds ment Bonds
Bonds Bonds Bonds Bonds of 1980 of 1983 of 1985
Revenues
Property taxes 124,850 130,833 170,082
Special assessnents
Intergovermental revenue:
State grant Hcmestead credit 35,682 38,021 23,678
Investment earnings 17,119 7,161 36,402 8,301 26,724 21,409
Other
Total Revenues 17,119 7,161 196,934 177,155 ry 220,484 21,409
Expenditures M
Principal 60,000 140,000 80,000 55,000
Interest 18,165 28,600 92,820 71,918 410,725
Fiscal agent fees 200 142 164 404
Other
Total Expenditures 78,365 168,742 172,984 126,918 411,129 II
Excess or Deficiency of Revenues r M N
Over Expenditures r 17,119 7,161 -78,365 28,192 �t,171 93,566 -389,720
Other Finaneing Sources or Uses(-)
Sale of bonds M N
Operating transfers in 78,365 326,890
Operating transfers out
Payment to escraa agent
Total Other Financing Sources
or Uses(-) 78,365 32b,890
Excess or Deficiency of Revenues and
Other Sources over Expenditures 17,119 7,161 0 28,192 4,171 93,566 -62,830
Fund Balances January 1 207,858 86,9u7 0 438,643 212,288 380,705 �53,519
Fquity Transfers In/Out(-) -224,977 -94,108
Fund Balances December 31 0 0 0 466,835 216,459 474,271 39�,689
(See notes to financial statements)
r i
I
City Brooklyn Center C-2
Debt Service Funds
CANBINING STATEMENT OF REVENU�, IXPENDITURES, AND CHANGES IN FUND BALANCFS
Year Ended December 31, 19$'7
Impravement Improv�ent Imprw�nent Improvsnent Improvement Improvsnent Improvement
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of
195 9 196 0 1961 196 3 196 5 196 6 196 9
Revenues
Property taxes
Special assessments 16,605
Intergovermental revenue:
State grant F�mestead credit
Investment earnings 89 98 5 43,874 11,605 13,599 10,671
Other 1,013 24 3,k30
Total Revenues 89 1,111 29 r 43,874 11,605 17,029 27,276
Expenditures �M� w____
Principal 10,000 20,000
Interest 480 2,600
Fiscal agent fees 200 106
Other 91 76 225 403 2,7�5
Total Expenditures 91 76 225 r 11,083 25,451
Excess or Deficiency of Revenues
Over Expenditures 89 1,111 -62 43,798 11,3� 5,946 1,825
Other Financing Sources or Uses(-)
Sale of bonds
Operating transfers in
Operating transfers out
Payment to escrow agent
Total Other Financing Sources
or Uses(-)
Excess or Def iciency of Revenues and
rOther Sources over Expenditures 89 1,111 -62 �3,798 11,380 5,946 1,825
Fund Balances January 1 1,088 965 1 532,799 141,125 165,704 129,0�5
Equity Transfers In/Out(-) -1,177 -2,076 -80 -576,597 -152,505 -171,650
Fund Balances December 31 0 0 0 0 0 0 130 870
(See notes to financial statements)
City of Brooklyn Center C-2
Debt Service Funds
CO[�INING STATEMENT OF REUENUFS, EXPENDITURES, AND CHANGFS IIV FUND BALANCES
Year Ended December 31, 1987
Impravsnent Improvenent Impravement Impra+�nent Refunding Totals
Bonds of Bonds of Bonds of Bonds of Bonds of
1970 1 �f 3 1976 1982 1987 1987 1986
Revenues
Property taxes 425,765 698,057
Special assessments 9,377 20,671 60,280 3�+,482 491,415 550,860
Intergovermental revenue:
State grant Hanestead credit 97,381 99,076
Investment earnings 50,35�+ 21,396 34,390 33,669 336,866 440,398
Other 4 �467
Total Revenues 59,731 42,067 9�,670 418,151 1,355,894 1,788,391
Expenditures _M
Principal 20,000 65,000 854,925 1,304,925 600,000
Interest 4,0�0 14,225 286,679 930,252 717,350
Fiscal agent fees 200 36 29,925 31,377 1,839
Other 13,143 6,803 2,651 30,159 56,296 13,617
i Total Expenditures 37 ,383 6,803 81,912 1,201,688 2,322,850 1,
J����� �r�
`i Excess or Deficieney of Revenues
Over Expenditures N 22,3�8 35,264 12,758 783,537 966,956 455,585
Other Financing Sources or Uses(-) N
Sale of bonds r 1,200,000 1,200,000
Operating transf ers in 405,255 85,000
Operating transfers out 0 -5,697
Payment to escraw agent -1,170,075 -1,170,075
Total Other Financing So�.mces N
or Uses(-) 29,925 435,180 79,303
Excess or Deficiency of Revenues and
Other Sources over Expenditures 22,3�+$ 35,264 i2,758 -753,612 -531,776 53u,888
Fund Balances danuary 1 625,091 260,554 �475,530 1,299,058 5,411,061 4,876,173
Fquity Transfers In/Out(-) -295,818 -545,446 5�+5,446 -1,518,9$$
Fund Balances December 31 647,439 0 488,288 0 5�15,�46 3,360,297 5,411,061
(See notes to financial statements)
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS 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 utilizes the modified accrual basis of accounting.
Re venues 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.'
The City�s Capital Projects Funds included in this section are:
Capi-tal Pro Fund: This Fund was established in 1968 to provide
funds, and to account for the expenditure of such funds, for ma jor
capital outlays including, but not be limited to, construction or-
acquisition of major permanent facilities having a relatively long
1 ife; and/or to reduce debt incurred for capita 1 outlays. The
financing sources of the Fund include ad valorem taxation, transfers
from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
Municipal State Aid for Construction Fund: This Fund was established
to account for the state allotment of gasoline tax collections used
for transportation related construction projects.
Special Assessment Construction Fund: This Fund was established to
account for the resources and expenditures required for the acquisi-
tion and construction of capital facilities or improvements financed
wholly or in part by special assessments levied against benefited
properties. Special Assessment Debt Service Funds are established to
pay principal and interest on the general obligation special assess-
ment bonds sold to finance improvements.
Ci ty of Brooklyn Center D-1
Capital Projects Funds
COMBINING BALANCE SHEET
December 31 1987
Muni ei pal Speci al
Capital State Aid Assessment Totals
Projects for Construction
Fund Construction Fund 1987 1986
ASSETS
Cash and investments 3,203,0 85 2,898,9$? 550,671 6,652,743 6,2 80,5 96
Temporary improvement notes 105,009 95,024 200,033 248,108
Accounts receivable 7,570 7,570 12,860
Special assessments:
Deferred 7,929 414,709 422,638 301,926
Delinquent 4,897 3,140 8,037 2, 114
Due from other funds 109,087
Due f rom other governments 1,612,884 1,612,884 1,398,355
Interfund loan-municipal liquor 274,419 274,419 286,003
TOTAL ASSETS 3,602,909 4,606,895 468,520 9,178,324 8,639,049
'i' LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable 51,965 8,161 60,126 281,890
Contracts payable 2,711
Due to other funds 72,635
Temporary improvement notes 679,228 679,228 896,023
Def erred revenue 12,826 417,849 430,675 301,926
-------5----
Total Liabilities 64,791 9,10 ,238 1,170,029 1,555,185
Fund Balances
Reserved:
Unexpended appropriations �9,809 49,809 583,893
State approv ed projects 2,022,87 2 2,022,872 2,016,3 87
Unreserved 3,488,309 2,5 84,023 -136,718 5,935,614 4,483,5 84
Total Fund Balances 3,538 4,606,895 -136,718 8,008,295 7,083,864
TOTAL LIABILITIES AND FUND BALANCES 3,602,909 $�,606,895 968,520 9,178,324 8,639,049
(See notes to financial statements)
r
r
City of Brooklyn Center D-2
Capital Projects Fund
COMBINING STATEMENT OF REYENUES, EXPENDITU RES AND CHANGES IN FUND BALANCE
Year Ended December 31, 1987
Municipal Special
Capital State Aid Assessment Totals
Projects for Construction
Fund Construction Fund 1987 1986
Revenues
Special assessments 86,004 86,004 106,002
Intergovernmental:
State grants 555,636 555,636 651,301
Investment earnings 180,587 260,641 50,170 491,39$ 628,117
Sale of land 188,130 188,130 138,759
Other 9,800 9,800 78,561
Total Revenues 368,717 816,277 145,974 1,33�,968 1,602,740
Expenditures
Other services 1,530 39,888 41,418 41,756
Capital outlays 1,286,842 245,660 365,708 1,898,210 1,9�7,646
Total Expenditures 1,288,372 245,660 �+05,596 1,939,628 1,959,�+02
u
Excess or Deficiency of Revenues
p---------
Over Ex enditures -919,655 570,617 -259,622 -608,660 -356,662
Other Financing Sources of Uses(-)
Operating transf ers in 30,086 3�+6,367 376,453 399,316
Operating transfers out -366,5?0 -366,570 -417,526
Total Other Financing Sources
or Uses( 30,086 366,570 3�+6,367 9,883 18,210
Excess or Deficiency of Revenues and Other
-------p--
Sources Over Ex enditures and Other Uses 889,569 204,047 86,7�+5 -598,777 -37u,872
Fund Balance January 1 2,90�,480 4,402,848 -223,464 7,083,864 7,458,736
Equity Transfers In 1,523,207 1,523,207
Fund Balance December 31 3,538,118 4,606,895 $-136,719 8,008,294 7,083,864
(See notes to financial statements)
City of Brooklyn Center S-3
Capital Projects Fund
PROJEC�'-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
Fram Beginning to December 31 1 987
Project Overexpended(-)
1987 to Date Unexpended
Type of Project Appropriations Expenditures Expenditures Appropriations
Central Park Plaza 528,142 29,500 528,958 -816
Centerbrook Golf course 1,770,392 806,379 1,753,583 16,809
Central Park pedestrian trail 93,700 8,440 93 ,991 -2g1
Civic Center building access 20,000 58 8,57$ 11,422
Palmer Lake basin 256,485 54,147 282,418 -25,
Central Park Phase III 270,806 8,066 261,733 9,073
Police Department remodeling 55,868 1,606 56,252 -384
Satellite dumpster enclosure 70,625 58,686 58,686 11,g39
Community Center remodeling 355,475 314,112 314,112 �41
Palmer Lake trail extension 10,200 5,848 1-0,948 -748
Replat I-g4 property 33 33,000
3,464,693 1,286,842 3,369,259 --r 95 ,434
(See notes to financial statements)
r
City of Brooklyn Center S-4
Municipal State Aid Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1987
Project Overexpended(-)
1987 to Date Unexpended
Project Number Appropriation Expenditures Expenditures Appropriations
Golf course storrn sewer 85-23 190,842 190,842 190,842 0
Humboldt Ave sidewalk 86-06 23,787 1,195 24,4g7 -710
Street impr. 69th Ave 87-08 60,000 16,142 16,142 43,858
Camden Ave sidewalk 87-1G 53,23�+ �7,481 37,481 15,753
Totals 327,863 245,660 268,962 58,901
(See notes to financial statements)
City of Brooklyn Center S
Special Assessment Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
Fran Beginning to December 31, 1987
Project Overexpended(-)
Project 19$`7 to Date Unexpended
Type of Project Nunber Appropriations Expenditures �Expenditures Appropriations
Dallas street curb 85-12 67 ,938 63,406 83,281 -15,3�+3
Earle Brawn Farm storm sewer 86-08 167,656 159,611 182,381 -14,725
Earle Braan Farm utilities 86-20 90,671 19,107 91,005 -334
Street i.mpr. 69 70th Ave 86-10 365,109 119,962 269,696 95,413
o Halifax storm sewer 87-22 2,500 2,622 2,622 -122
France Ave reconstruction 88-05 1,000 1,000 1,000
694,874 365,708 629,985 6�+,889
(See notes to financial statements)
�w +�■i r
City of Brooklyn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were established to account for the financing of
self-supporting activities of the City which render services on a user
charge basis to the general public.
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:
Munici�al Liquor Fund: This Fund was established to account for the
operations of the City's three municipal off-sale liquor stores.
Public Utilities Fund: This Fund was established to account for the
operations of the City owned water and sanitary sewer systems.
City of Brooklyn Center
Enterprise Funds 1
CON�INING B.ALANCE SHEET
December 31, 1987
Muni ci pal Publ ic Total s
Liquor Utilities
Fund Fund 1987 1986
ASSETS------------
Current Assets
Cash and investments 71,740 3,549,471 3,621,211 3,734,297
Temporary improv snent notes 116,352 116,352 161,284
Accowlts receivabl e- net 2,578 102,649 105,227 113,134
Assessmen�s receivable:
Def erred 111,224 111,224 g6,667
Delinquent 3,2�9 3,209 2,040
Accrued revenue 217,826 217,826 193,375
Due fran other gov errments 227 227 294,865
Inventories 258,859 10,879 269,738 272,534
Prepaid expenses 33,974 79,322 113,296 81,238
Total Current Assets 367,151 4,418,275 4,785,426 4,949,434
Restricted Assets
Temporary investments 4,000,000 4,000,000 4,000,000
Debt retirement investments 128,775 128 131, 735
Total Restricted Assets 4,128,775 4,128,775 4,131,735
Fixed Assets
Mains and 1 ines 12,538,561 12,538,561 12,035,331
Structures 216,547 3,551,805 3,768,352 3,464,108
Equixxnent 156,970 353,788 510,758 506,679
Land 100,878 24,816 125,6g4 125,694
Land improv enents 5,898 5,898 5,898 1
Leasehold improv anents 39,670 39,670 39,670
Construction in progress 156,545
519,963 16,468,970 16,988,933 16,333,925
Less: Allaaance for
depreciation _____183,870 ___4,485,272 ___4,669,142 4,411,676
Total Fixed Assets 336,093 11,983,698 12,319,791 11,922,2�+9
TOTALS 703 ,244 _$20,530,748 _$21,233,992 _$21,003,418
(See notes to financial statements)
-79-
t
F-1
Municipal Public Totals
Liquor Utilities
Fund Fund 1987 1986
LIABILITIES, CANTRIBUTIONS
AND RETAINED EARNINGS
Current Liabilities
Acco�ts payable 91,207 25,785 116,992 118;553
Contracts payable 0 13�,239
Due to other funds 0 36,363
Accrued salaries payable 7,786 7,758 15,544 13,13$
Accrued vacation and
sick pay 7,239 14,110 21,349 18,081
Current portion of
long-term debt 12,609 45,000 57,609 56,585
-----211,4-� -------6'---
Total Current Liabil ities 118,841 92,653 9 37 959
Long-Term Liabilities
Construction loan 261,810 261,810 274,41'9
Revenue bonds 180,000 180,000 225,000
Total Long-term Liabilities 261,810 180,000 441,810 49g,419
Fund Equity
Contributions 10,616,086 10,616,086 10,596,980
Retained earnings:
Reserv ed:
Debt retirenent 128,775 128,775 131,735
Restricted assessnents 111,224 111,224 96,667
Plant expansion 4,000,000 4,000,000 4,000,000
Working capital 620,000 620,000 620,000
Unreserved 322,593 4,782,010 5,104,603 4,681,658
Total Retained Earnings _____322,593 9,642,009 9,964,602 9,530,060
Total Fund Equity 322,593 20,258,095 20,580,688 20,127,040
TOTALS 703,244 $20,530,7�8 �21,233,992 $21,003,418
(See notes to financial statements)
-so-
City of Brooklyn Center F-2
Enterprise Funds
CONBINING STATEN�NT OF REVENtJES, EXPENSES AND CHANGES IN RETAINm EARNINGS
For the Year Ended December 31, 19$'7
Municipal Public Totals__
Liquor Utilities
Fund Fund 1987 1986
Operating_Revenues
Sales and user fees 2,527,159 1,653,424 4,180,583 4,011,218
Cost of sales ___1,930,254 ___1,930,254 ___1,890,311
Gross Margin 596,905 1,653,424 2,250,329 2,120,907
Operating Expenses
Personal services 247,443 252,227 �+99,670 501,351
Suppl ies 10,366 116,491 126,857 39,756
Other services 79,7$$ 985,236 1,065,024 1,108,822
Insurance 29,699 8,219 37,918 41,793
Utilities 23,727 136,358 160,085 144,063
Rent 26,536 181,384 207,920 197,393
Depreciation 16,752 240,713 257,465 315,905
Total Operating Expenses 43�4,311 1,920,628 2,354, 2,3�9,083
Operating Income 162,594 -267,204 -104,610 -228,176
Nonoperating Revenues or Expenses(-)
Investment earnings 6,539 629,644 636,183 757,644
Special assessments 39,389 39,389 11,971
Other revenue or expense(-) 379 7,853 8,232 16,658
Interest and f iscal
agent fees 23,866 -10,786 -34,652 -37,206
Nonoperating Totals -16,g48 666,100 649,152 7�49,067
Income Before Operating
Transfers 145,646 398,896 544,542 520,891
Operating Transf ers:
In 3��57
Out(-) -110,000 -110,000 -100,000
Net Income 35,646 398,896 434,542 424,348
Retained Earninigs January 1 286,9�+7 9,243 ,113 9,530,060 9,105,712
Retained Earnings December 31 322,593 9,642,009 9,964,602 9,530,060
(See notes to f inancial statements)
-81-
Cit of Brookl n Center F-3
Y Y
Enterprise Funds
CON�INING STATEN�NT OF CHANGES IN FINANCIAL POSITION (Continued next page)
For the Year Ended December 31, 1987
Municipal Public Totals
Liquor Utilities
Fund Fund 1 19
Sources of Financial Resources
Operations:
Net incane for year 35,646 398,89b 43�+,542` 424,348
Add: Items not requiring
current outlay
depreciation 16,752 240,713 257,�65 315,822
Total Resources Prov ided
By Operations 52,398 639,609 692,007 7�0,170
Contributions taaard
construction 19,106 19,106 83,3�
Decrease in restricted assets 18,Og0 18,Og0 70,122
Total Sources 52,398 676,805 729,203 893,598
Uses of Financial Resources
Purchase of properties 3,605 651,402 655,007 446,411
Debt retir�nent 12,609 45,000 57,609 56,585
Total Uses 16,214 b96,402 712,616 502,996
Net Increase or Decrease(-) in
Working Capital 36,184 -19,597 16,58'7 390,602
-s2-
City of Brooklyn Center F-3
Enterprise Funds
COI�INING STATEN�NT OF CHANG ES IN FINANCIAL POSITION (Continued f ran
For the Year Ended December 31, 1987 prior page)
Municipal Public Totals
Liquor Utilities
Fund Fund ____1987 1986
Elements of Increase or Decrease(-)
in Working Capital
Cash and inv estments 6,141 $-280,511 $-274,370 273,040
Temporary improvement notes 116,352 116,352
Accounts receivable 1,498 -g,405 -7,907 10,177
Accrued revenue 24,451 24,451 -432
Assessments receivable 15,7 15,726 577
Due fran other gov errments 52, 392 52, 392 -67,810
Inventories 2,884 88 2,7g6 18,175
Prepaid expense 2�4,756 7,302 32,058 5,136
Accotults pay�ble -13,051 -7,681 -20,732 123,702
Contracts payable 134,239 13�,239 -92,258
Due to other funds 36,363 36,363 108,302
Due to other goverrments 0 5,792
Accrued liabilities 20,748 -4,129 16,619 8,296
Current portion of long-term
debt -1,024 -1,024 41
9
Net Increase or Decrease(-)
IN WORKING CAPITAL 36,184 -19,597 16,557 390,
(See notes to f inancial statements)
-83-
City of Brooklyn Center F_4
Muni ci pal Liq uor Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
Year Ended December 31, 1987
Year Ended December 31,
1987 1986
Sal es
Liquor 784,209 754,203
Beer 1,288,929 1,213,223
Wine 386,369 �+06,685
Soft drinks 48,822 48,20g
Other merchandise 18,830 43,429
Total Sales __2,527,159 __2_465,7�9
Lesss Cost of Sales __1,930,254 __1,89�,311
Gross Margin 596,9�5 575,438
Operating Expenses
Personal services 247,4�+3 244,170
Supplies 10,366 10,839
Other services 79;7$$ 85,046
Insurance 29,699 29,768
Utilities 23,727 21 ,357
Rent 26,536 28,811
Depreciation 16,752 15,772
Total Expense 43�,311 435,763
Operating Income ____162,594 139,675
Non Operating Revenue or Expense(-)
Investment earnings 6,539 $,914
Other revenue of expense(-) 379 6,372
Interest and fiscal agent f ees -23,866 -24,807
1
-16 948 -9,521
Operating Transfers to General Fund ____110,000 ____100,000
Net Income 35,646 30,154
Retained Earnings January 1 286,947 256,793
Retained Earnings December 31 322,593 286,947
i
(See notes to financial statments)
-84-
City of Brooklyn Center
Public Utilities Fund
BALAIVCE SH EET
December 31, 1987
Total s
W ater Se�wer
Accounts Accounts 1987 1986
ASS ETS
Current Assets
Cash and inv estments 727,103 2,822,368 3,54g,471 3,668,698
Temporary improvment notes 23,82$ 92,524 116,352 161,28�+
Accounts receiv abl e- net 31,677 70,g7 2 102,649 112,054
Accrued revenue 61,025 156,801 217,826 193,375
Assessments receivable:
Deferred 111,22�4 111,224 96,667
Delinquent 3,209 3,209 2,040
Due fran other gov errments 227 227 294, 865
Inventories 10,879 10,879 10,791
Prepaid expenses 79,322 79,322 72,020
Total Current Assets g68,945 3,449,330 4,418,275 4,611,79�
Restricted Assets
Temporary investments 3,700,000 300,000 4,000,000 4,000,000
Debt retirement investments 128,775 128,775 131,735
Total Restricted Assets 3,828,775 300,000 4,128,775 4,131,735
Fixed Assets
Mains and lines 7,570,370 4,g68,191 12,538,561 12,035,331
Structures 2,517,3�0 1,034,465 3,551,805 3,247,561
Equi�xnent 176,894 176,89�+ 353,788 353,314
Land 24,816 24,816 24,816
Construction in progress _____156,545
10,28g,420 6,179,550 16,468,97 0 15,817,567
Less: All aaance for
Depreciation 2,445 411 2 0 861 4 485 2 2 4 244 558
39> 7
Total Fixed Assets 7,844,009 4,139,689 11,983,698 11,573,009
TOTALS $12,641,72g 7,889,019 $20,530,748 $20,316,538
(See notes to financial statements)
-85-
F-5
Total s
Water S�►aer
Accounts Accounts 1987 1986
LIABILITIES, CONTRTBUTIONS AND
RETAINED EARNINGS
Current Liabilities
----�Y----
Accounts abl e 25,785 25,785 18,104
Contracts payable 13�+,239
Due to other funds 36,363
Accrued salaries payable 3,879 3,879 7,758
Accrued vacaton and sick pay 7,055 7,055 14,110 17 ,739
Current portion of
long-term debt �5,000 45,000 45,000
Total Current Liabilities 81,719 10,934 92,653 251,445
Long-Term Liabilities
Revenue Bonds 180,000 180,OOQ 225,000
Total Long-Term Liabilities 180,000 _____180,000 225,000
Fund Equity
Contributions ___4,997,510 5,618,576 10,616,086 10,596,980
Retained Earnings:
Reserved:
Debt Retir�nent 128,775 128,775 131,735
Restricted assessments 111,224 111,22�4 g6,667
Plant expansion 3,700,000 300,000 4,000,000 4,000,000
Working capital 170,000 450,000 620,000 620,000
Unreserved 3,272,501 1,509 ,509 4,782,010 4,39�,711
Total Retained Earnings 7,382,500 2,259,509 9,642,009 9,243,113
Total Fund Equity 12, 380,010 7,878,085 20,258,095 19,840,093
TOTAI.,S $12,641,729 7,88g,019 $20,530,748 $20,316,538
-86-
City of Brookln Center F-6
Public Utilities Fund
SCHEDULE OF REVENUES, EXPENSES AIVD
CHANGFS IN RETAINED EARNINGS
For the Year Ended December 31, 1987
Totals
Water Sewer
AccoLmts Accounts 1987 19�b
Operating Revenue
Service to consuners 541,165 1,091,749 1,632,914 1,521,569
Service hook-up charges 6,704 6,704 11,121
Sal e of ineters (net) 5,950 5,950 4,658
Penalties 2,403 5,453 7,856 8,121
Total Operating Revenue 556 222 1 0 202 1 65 424 1 4�+6
Operating Expenses 639,046 1,281,582 1,920,628 1,913,320
Operating Income or Loss(-) -82,824 -184,380 -267,204 -367,851
Nonoperating Revenues or Expenses(_)
Inv estment earnings 391,639 238,005 629,644 740,678
Special Assessnents 19,695 19,694 39,389 11,971
Metro Waste Control Canm. 6,534 6,534 8,052
Other 1,319 1,319 10,286
Interest and f iscal fees -10,786 -10,786 -12,
Total Nonoperating 401,867 264,233 666,100 758,588
Incane Before Operating
Transfers 319,043 79,853 398,896 390,737
Operating Transfers In or Out(-) 3,�57
Net Income 319,0�3 .79,853 398,896 394,19�
Retained Earnings January 1 7,063,457 2,179,656 9,243,113 8,848,919
Retained Earnings December 31 7,382,500 2,259,50g 9,642,009 9,2�3,113
(See notes to financial statments)
-s7-
City of Brooklyn Center S-6
Publ ic Util iti es Fund
SCHEDULE OF WATER OPERATING EXPENSE
For the Year Ended December 31, 1987
Classification by Function
Year Ended December 31,
Source of Achnin- Custaner
Supply Transmission istration Accounting 1987 1986
Personal Services:
Salaries and wages 32,208 22,220 48,846, 34,311 137,585 146,762
Payroll taxes 11,841 11,841 9,969
Employee benefits g,827 9,827 8,860
32,208 22,220 70,51�1 3�,311 159,253 165,591
Supplies and materials 89,426 9,9b9 1,089 312 100,796 26,568
Heat, Light and Power:
Electricity 117,243 91 117 102,870
Gas 3,933 3,933 4,003
121,176 91 0 0 121,267 106,87 3
Contractual Services:
Professional Services 10 3,176 3,186 22,341
Postage 10,617 10,617 11,074
Insurance 415 3,500 3,915 6,119
Repairs and maintenance 1,276 -23,793 8,300 -14,217 62,735
Rent and ac�ninistration g0,692 90,6g2 85,371
F�uipnent rental 6,488 7,377 13 865 19 804
I
�,286 -23,378 112,156 17,994 108,058 207,444
7
Depreciation 88,524 61,148 14g 672 200 22
Totals 332,620 70,050 183,759 52,617 639,OU6 706,703
(See notes to f inancial statements)
City of Brooklyn Center S-7
Public Utilities Fund
SCHEDi1LE OF SQnIER OPERATING EXPENSE
For the Year Ended December 31, 1987
Classification by Funetion
Year Ended December 31,
Disposal and Admin- Custaner
Pumping Tran:�nission istration AccoLmting 1987 19�
Personal Services:
Salaries and wages 22,183 31,�+33 17,690 71,306 72,771
Payroll taxes 11,841 11,841 9,920
Employee benefits 9,827 9,827 8,899
22 31,433 39,358 92,974 91,590
Suppl ies and materials 5, 10,257 135 15,695 2,349
Heat, Light and Pow er:
Electricity 14,817 14,817 15,�+41
Gas 264 264 392
I
_15,081 15;081 �5� 833
Contractual Serv ices: I
Professional Services 1,461 1,461 5,432
Postage 2,880 2,880 2,653
Insurance 804 3,500 4,304 5,906
Repairs and maintenance -279 2,042 1,761 3,524 5,646
Rent and achninistration g0,692 90,692 83,211
Equi�xnent rental 6,488 7,377 13,865 19,704
Metro Waste Control
Commission 926,083 926,083 850,889
City of Brooklyn Park 23 ,982 23,982 23,508
949,786 2,846 103,902 10,257 1,066,791 996,949
Depreciation 51,723 39,318 91,041 99,906
Totals 1,044,076 83,854 143,395 10,257 1,281,582 1,206,627
(See notes to financial statements)
i r r r i r �s r
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 funds included in this section are:
Fire De artment Relief Associa�tion A�enc� Fund: This fund was es�tab-
lished �o account for the collection of property taxes by the City for
the Brooklyn Center Volunteer Fire Department Relief Association to be
used for fire fighters' pensions. This fund was closed in 1987.
Emplo.yee Deferred Compensation Fund: This fund was established �o
account for funds on deposit with the trustees who administer the City
sponsored deferred compensation plans.
City of Brooklyn Center G
CONBINING STATEMENT OF CHANGFS IN ASSETS AND LIABILITIES
For the Year Ended December 31, 1987 (Continued
next page)
Balance Balance
December 31, December 31,
____1986 Additions_ Deductions ____1987
Fi re Department Rel ief
Association Agency Fund
Assets
Investments 42,227 1,169 43,396 0
Taxes receivable 10,885 4�48 11, 0
Tota1 Assets 53,112 1,617 54,729 0
Liabilities
Due to other funds 43 3 96 43 396 0
Prin�ipal's balance 9,716 9,716 0
Total Liabilities 53,112 0 53,112 0
-90-
City of Brooklyn Center G
CONB INING STATEMEN T OF CH ANG FS IN ASSETS AND L I.AB IL ITIES
For the Year Ended December 31, 1987 (Continued
next page)
Balance Balance
December 31, December 31,
1986 Additions Deductions 1987
Fmployee Deferred
Compensation Fund
Assets
Investments for deferred
canpensation plans held
by trustees 986,985 202,483 25,5�7 1,163,921
Total Assets g86,985 202,483 25,547 1,163,921
Liabilities
Due to employees for
deferred canpensation 986,985 202,483 25,547 1,163,921
Total Liabilities 986,985 202,483 25,5�+7 1,163,921
I
-91-
City of Brooklyn Center G
CONBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL �ENCY FUNDS
For the Year Ended December 31, 1987 Continued f ran
prior page)
Balance Balance
December 31, December 31,
____1986 Additions_ Deductions ____1987
Totals All Agency Funds
Assets
Investments for deferred
compensation plans held
by trustees 986,985 202,483 25,547 1,163,921
Investments 42,227 1,169 43,396 0
Taxes receivable 10,885 �+4$ 11, 0
Total Assets l 1,040,097
Liabilities
Due to employees for
deferred compensation 986,985 202,4 83 25,5 47 1,163,921
Due to other funds 43,396 �+3,3� 0
Principal's balance 9,716 9,716 0
Total Liabilities 1,040,097 202,483 78,659 1,163,921
(See notes to f inancial statements)
-92-
1
City of Brooklyn Center, Minnesota
GENERAL FIXED ASSET ACCOUNT GRQUP
1
The General Fixed Asset Account Group was established to account for
the City's fixed assets which are not accounted for in an enterprise
fund, and which are tangible in nature, have a life longer than the
current fiscal year, and have a significant value. Depreciation is
not recorded on those assets.
1
City of Brooklyn Center S-8
SCHEDULE OF CHANGES IN GEfVERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 19�'7
Balance Balance
January 1, December 31,
1987 Acquisitions Disposals 1g87
Investments in General Fixed
t Assets (At_cost)
Land and improv �nents 1,427,531 1,427,531
Buildings and improvements
(includes buildings) 5,58'7,524 420,591 6,008,115
Park properties
(includes buildings) 3,832,832 159,587 3,992,419
Furniture 418,810 51,937 470,747
Departmental equipnent 3,783,369 �+33,086 124,560 4,091,895
Total Investments in General
Fixed Assets $15,050,066 1,065,201 124,560 $15,99�,7�'7
Sources of Investments
j' General Indebtedness 600,4g1 600,491
General Fund revenues (includes
ad valorem taxes) 5,133,336 590,636 124,560 5,599,412
Liquor store income 304,571 3��+,571
Contributions 327,398 327,398
Capi tal proj ects funds
G.O. bonds 3,129,798 3,129,798
Tax levies 265,243 265,243
Sale of assets 156,654 156,654
Debt Service Funds excess 198,386 198,386
Capital Projects Fund
Balance 3,4g2,398 474,565 3,96b,963
Fe der al gr ant s 1,120 ,182 1,120 ,182
State grants 321,609 _____321,609
Total Sources of Investments $15,050,066 1,065,201 124,560 $15,990,707
(See notes to financial statements)
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1
S-
9
Ci ty of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1987
Function Total Land Buildings Equipment
General
government 5,990,173 ,�+27,531 �+,562,642
General
gov ernment
buildings 6,008,115 6,008,115
Parks includes
buildings) 3,992,419 3,992,419
Totals $15,990,707 5,419,950 6,008,115 �,562,642
i
(See notes to financial statements)
-94-
City of Brooklyn Center, Minnesota
GENERAL LONG-TERM DEBT ACCOUNT GROUP
The General Long-Term Debt Account Group was established ta accou�t
for the City�s unmatured general obligation long-term debt that is
secured by the full faith and credit of the City and is no the
primary obligation of a Special Assessment Fund or an Enterprise F'und
of the City.
City of Brooklyn Center H
COMPARATIVE SCHEDULE OF GENERAL LONG-TERM DEBT
December 31, 1987
December_31,
---�987 1986
Amounts Available and to be Provided
Amounts available in Debt Service Funds (1) 3,360,297 $�,�79,583
Amounts to be provided:
From future tax lev ies $31 152 1, 1 47,73�
From future tax increments 5,255,040 5,3��,776
From future gas tax allocations _____240,000 _____300,000
Total Available and to be Provided 9 $90,968
General Lon -Term Debt Pa able
g Y
General Obligation Bonds 1,7 40,000 2,0 20,000
Special Assessment Bonds 1,500,000 2,440,000
Tax Increment Bonds 6,120,000 6,175,000
Assessments on City Property 20,500
Sick and vaeation accruals 326 312,593
Total General Long-Term Debt 9,686,489 $10,968
(See notes to financial statements)
1) Amounts for 1986 have been restated to include Special Assessment
Funds. Some of those f unds had paid all of their outstanding debt,
but still had assets left. These funds have been excluded from this
statement. As a result, the Debt Service Funds, Combining Balance
Sheet, Fund Balance for 1986 does not match the amounts available
for 1 986 shown on this page. These funds were closed during 1987
-95-
City of Brooklyn Center I
SUh41ARY OF DEBT SEAVICE RF�UIREMENTS TO MATURITY
December 31, 198'�
G.O. Special G.O. Tax
General Obligation Bonds Asses�nent Bonds Incrsnent Bonds Water Revenue Bonds Debt Service Requirsnent
Year Principal Interest Principal Interest Principal Interest Principel Interest Principal Interest
1988 S 300,000 119,680 280,000 84,193 60,000 478,688 45,000 8,775 685,000 691,336
1989 310,000 98,795 250,000 53,385 75,000 473,$$$ �5,000 7,020 680,000 633,088
199� 180,000 77,175 225,000 41,979 125,000 466,83$ 45,000 5,265 575,000 591,257
1991 3�,000 58,445 215,000 31,775 135,000 45T,650 45,000 3,510 735,000 551,3�
1992 300,000 34,810 1�5,000 23,260 200,000 445,488 45,000 1,755 690,000 505,313
1993 310,000 11,780 110,000 17,158 240,�00 429,282 660,000 458,220
i
1994 100,000 11,912 285,000 409,685 385,000 421,597 I I
1995 85,000 7,131 3�,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
199$ �30,000 289,780 430,000 289,780
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 96,997
2003 800,000 32,400 800,000 32,400
1,740,000 k00,685 1,500,000 275,443 6,120,000 5,263,779 225,000 26,325 9,585,000 5,966,232
r
Cit of Brookl n Center Minnesota
Y Y
STATISTICAL SECTION
The statistical section presents comparative statistical data for the
past ten years, and other pertinent information involving taxes,
revenues, expenditures, bonded debt, prop_erty valuations, insurance
coverages and miscellaneous statistics.
This information is intended to be useful and of interest to investors
in City bonds, financial institutions, and others interested in
1 municipal government financial statistics.
With the exception of Table 9(Computation of Direct and Overlapping
Debt) and information concerning school districts in the Nliscellaneous
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.
i
1
1
1
1
i
City of Brooklyn Center TABLE 1
GENERAL GWERNMENTAL
EXPENDITUES AND OTHER USES BY FUNCTION (1)
Last Ten Fiscal Years
Community
Fiscal General Public Public Health Parks and Non- Transfers Total
Year Goverrrnent Safety Works Services Recreation Departmental Out Expenditures
19'78 868,776 $1,151,480 733 ,615 66,423 7g5,116 3,615,410
1979 688,539 1,317,938 883,870 48,576 851,684 227,486 4,018,093
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 1,176,4�47 39,385 1,162,878 19'7 ,79� $250,000 5,324,780
I 1982 1,007,781 "I ,901,839 1,213,941 36,244 1,122,299 247,755 5,529,859
1983 1,054,064 1,875,122 1,288,081 28,663 1,268,907 91 ,953 5,606,790
1984 1,112,173 1,985,108 1,383,039 30,437 1,319,298 337,624 6,167,679
19�5 1,283,050 2,143,843 1,560,842 34,3� 1,389,075 416,937 6,828,073
198b 1,487,876 2,288,062 1,54g,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
(1) Funds ineluded in this table are the Generas Fund..
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City of Brooklyn Center TABLE 2
GENERAL GOV ERNMENTAL
REVE(VUES AND OTHER FINANCING SOURCES BY SOURCE (1)
Last Ten Fiscal Years
General
Fiscal Property Licenses Intergov ern- Charges for Fines and Transf ers Total
Year Taxes Permits mental Services Forfeitures Miscellaneous In Revenue
1978 1,650,791 179,062 1,173,054 360,488 68,281 92,638 574,080 4,098,394
19'79 2,131,443 186,464 1,298,545 465,885 82,466 135,889 b50,527 �,951,219�
1980 2,188,218 195 1,496,924 451,688 111,382 300, 434,243 5,178,724
1981 1,655,642 207,100 2,388,848 728,828 111,596 188,284 544,9b5 5,825,263
1982 1,935,403 249,015 2,213,�86 790,333 146 ,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
198� 2,��7,352 296,667 2,524,494 919,796 158,823 337,201 33�,�+52 6,974,785
1985 2,444,153 3�'7,806 2,618,957 979,543 187,045 3�8,316 311,926 7,277,746
1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 3�1,403 7,694,204
1987 2,541,016 3�+5,019 3,060,252 1,114,203 269,903 310,613 166,888 7,807,894
(1) Funds included in this table are the General Fund.
City of Brooklyn Center TABLE 3
TAX LEUIES AND TAX COLLECTIONS
Last Ten Fiscal Years
Collections Percentage Collections Ratio of
of Current Levy of Prior Ratio of Delir�quent
Year's Taxes Collected Year's Taxes Total Delinquent Taxes to
Year During Fiscal During Fiscal During Fiscal Total Collections Taxes Current Year
Collected Tax Levy Period Period Period Collections of Tax Levy Receivable Tax Levy
1978 2,060,012 1,995,621 96.87� 163,701 2,159,322 1.0482:1 170,662 .08285:1
1979 2,316,550 2,277,59'7 98.32 58,083 2,335,680 1.0083:1 146,042 .06304:1
1980 2,350,734 2,306,803 98.13 62,371 2,369,174 1.0078:1 135,953 .05783:1
1981 2,746,020 2,619,758 95.40 27,183 2,646,941 .9639:1 235,032 •08559:1
1982 2,9b5,702 2,854,688 96.26 45,419 2,900,107 .9779:1 300,627 .10137:1
1983 2,482,3b9 2,420,772 97.52 75,u37 2,496,209 1.0056:1 286,787 .11553:1
1984 2,83b,968 2,721,413 95.93 111,596 2,833,009 .998b:1 290,74b .102�+8:1
1985 2,931,266 2,657,094 90.65 178,709 2,835,803 •9674:1 38b,209 .13176:1
1986 2,88b,824 2,849,382 98•70 32,739 2,882,121 .99�+:1 390,912 .13541:1
1987 3,39b,789 3,242,573 95.46� 68,651 3,311,224 .9748:1 73,052 .02151
t� r
r
G�t3� c�' �dclyn �r TAH� 4
AS� VALIE ADD Nl�{EP VALLE ALL TAXA�E �Y
Iast Ztri FY.scal Yeacs
1979 1�J 1�'1 19� 1933 1�84 1�j 1� 1967 1996
R�u]ati.al (Achat) 33,'�T7D 3'�,95D 31,�0 :D,9�o �J,83o �J,6�D :0,2�7 �,'79�
F�al Prnpei�ty
Asses�d �al�:
City:
'?Z,CJ75,0'15 70,5�.9T3 �,133�5� 74,2�8,43� 75,2�-'�072 78,112,774 81,�2,1� �0,912,548 91,�9,246 90,��,�7
ESa�ess ar�d r�tr`ed 54,8�3,227 63,�� eJ�63�,9�1 1(ki,715,9�4 122„E9.C87 124,3�5,�3 1ffi,444,9�4 125,1�9,Cf�6 1�,433�5�3 �54,�31,�5
Acea-wic� a]locatirn (riet) 1,4G4,19e 1.8i,''�96 9,68�,�7 -2,�7,63J �,437,2�t3 3,�6,4% �2,134,213 -2,0�7,533 -1,345,864 �,148,661
125,A4,� 132,�J,�J 161,Q9t 176,E,�b,744 19��183,516 1A��,171 2?�,3�,9�3 213��G,673 2�J,0'17,� Z6,C�5,Fi�'1
'78,OOD 742,474 4,U�7,611 5�437.588 9.784,473
Zbtal assessed valte 125,504,�0 1�,290.Q3D "161,079.F�9 176,6�5,744 196,183,916 198,974,1?1 �4,640,4� ���7,06? 224,5?9,7� ?�i,261,1�
i
F�t;,�,t� 33G,g11,5� 451,5�9� EA�,637��6 �1�7D1,757 7�5.476�C63 775,�6.-'.40D '788,107,e:1D St3�3Tl.S�U e54,846,Y� 910,336„t�D
o I�rsQ'gl p�
0
A�w,zd �a1te 4,38�,337 3.�,'X6 4�a27,CS�6 4,113,767 3,573,567 4,148,'�i 4,275,721 4,291,916 4,�,ODt 4,510,313
Es-tivated �rl�t �81� 10,277,90D 8,�i6,� 9,�5,� 9,566�9�D 9,2q0,ON 9,648,270 9,944,'�D 9�9B7.2J0 9�9�0,70D 10,483,100
?b�l �ab]e P�perty
A.s9esseci �elt� 129�833�447 136�096.846 $'I��'IC6��7"j 18�,740 aJ0,157�:� a73�122��11 278�516��j6 214�156�978 22s3�875,794 2�J,771�441
Estina�d i►erl�t �al� 401,019,4�? 460,335.H� 614,0���6 E67,2�i8,Ff�7 734,716,033 784,810,Ea0 $'�,U�,500 Fi�3��3,� 854.837.2N $�,�i,900
Ratio of A�s�essed Ual� tA
E��°tivatEd N�t�t Ualt� .31g1�:1 .2�Ei1:1 .�:1 .�/C66:1 .ZJ"L¢3:1 .2;�2:1 .251'78:1 .2�'10:1 .25qC�:1 .2�061:1
F�r C�piita Ualtati�
Val� 3,854.40 4,1�D.41 5.2ffi.e� 5,8�.?2 6,4�.:D 6,�.48 6,778.61 6,9�1.8� 7,%1.8� 7,'754.68
Fsti�rated N�rl�t Ual� $12,U(7.73 13,J2.Y� $19,GEA.K 21,531.74 �3,831.21 25.456.07 25,�3.� �,�J.e� �,573.EA :0,942.75
City c� �roalclyn Ce�rher TA�E 5
TAX R!� ArD TAX LEV�S
Last Fiscal Yeers
�1X Rt� (N�LS) {2)
ScY�ool Ibstr�icts F�r�epin Zbtal (�i.y, Sc�nol, a�d Canty
�Y
Year Area Voo-'I� No. e86 No. 279 No. 261 I3� 11 a�d S�eci,al No. �6 No. Z79 I.� No. 281 I� No. 11
Collsr,tible City (1) Sc�ml (Farl �r�) (Cl�eo) (Roblair�le) (Arrls) Disiricts (F.arl Bi�) (Qs�eo) (Ro�hir�le)
1q�9 17.� 2.227 47.451 45•C�(3 46.645 47•'7� �.4:0 16S.008 100.6�0 1C2.2�L 101.�
15�0 17.2�15 1.68'I 42.98'1 3�345 41.4TS 43.212 34.560 96.4�3/ 92.851 94.J79 95.03?
158'1 16.603 1.510 33•5�2 3j.427 40.'757 37.996 33.373 84.9;6 84.913 �•243 Sl.9TZ
'1�82 16.3�j 1.qEA 3$.'$1 42.993 5�.5?A 46.847 33•;67 9D.214 94.426 101.�7 95.811
I 1583 �5.57'1 1.119 42.�6 46.� �.9�'� 45.474 33.�7 g3-543 96.C� 1C73.548 �.00�2
1984 .17.CJ�6 1.446 49•9E5 54.9�3 �.�35 55•�5 �.a77 '�3 'IQ9.4:�9 111.875 1C17•�
1985 16.�6 1.49� 49•3�? 51.1A. :6.1Q0 �.S�D 34.443 101.77"I 'I�.b� 1C8.5�3 103.'�
1566 '�'T.183 1.5�j 52.545 54.345 �3.4:0 3�.740 �.�6 'IC6.&5 1CB.C�29 113.'734 1C8.489
1�1 18.167 1.421 49.640 y"j.'783 56.� 5¢.� Jj .315 1C1�.543 110.6� 111.8� 1C8.qC8
1�eB 19•Z37 1.493 �.372 61.ff}� 58•433 C�.181 118.5C77 13�.99� 117•XB 119.�3
77
o TAX LE,Y.�.S (DCLI�)
Sct'�ool Lhstr�icts I�r�epin
Yesr Anea Voo-� No. �6 No. 279 Na �'1 No. 11 S��eaial S�d�ool�.s
Collec�tible C�ty Scrnol (�'arl &vaxi) (Clsseo) (Rd�air�]e) Uk'rk�a) Ihsiricts ari Co�xtty
'K119 2,3�6,gA 2�►099 $1,763,457 $1,711,,6'I $1,e:1,e64 794,944 4,603,OD� �13,2�t7,904
1�eD 2,�0,734 �3,243 'I,731.432 1,:68,49'� 1,Ff�J,314 1,,�2,E61 4,?`i1,67'1 13,744,546
193'1 2,746,C0� 237,EfT/ 1,93�,916 1,636,937 2,U6,145 'lE6,J2 S.�,C64 15,310,661
'K,ffi 2,9ET,'� 2'fj,�CB 2,422,618 2,C61,�5 2,6Cb,0U4 861,745 6,0G6,917 17,�,499
1�83 2,4�,�A �P,�6 2,'IJ0,8�B 2,6�,277 2,'78'1,�(3 1,0�9,119 6,?16,83� 18,6q8,17"1
'ISB4 2,8�b.968 �7,333 3.�,'�73 3,0�,749 3,178,504 1,Z79,�6 7,Cff.OBO 21.C8T,'�3
�9a5 2,�1,2:6 310,3�4 3�442,445 3,0'14,744 3,187,�1 1,a96,533 7,27T,150 21,�0,�3
�9e6 2,ee6,s24 �1�794 3�?75,z�3 3,'�4,'irn 3.416,�0� 1,329,'�T 7,y33�315 ?2,5g3,49B
1987 3�3�6,'78� 2q3,194 3.900,� 3,�3,3Z3 3,'?��934 1,i 8,086,:60 2�1,142,5�
1�B 3,576,8'I2 307,�6 4,6C�,8�6 3,'7���57 3,875.9C6 $1,531,fflt 8,852,T11 �i,545,�A
(1) Imludes tax ]evy fcc tY�e Housirg a�3 Re�l.q�aYt Atrttx.�ity af E�uoklyn Ca�r�r of a�thind �n17..
(2) (Y�e unil rai.9as $1.0� in ta�s f� each $1,0�.o0 c� asses9ed �alt.e.
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City of Brooklyn Center TABLE 6
SPECIAL ASSESSMENT COLLECTIONS
Last Ten Fiscal Years
Percent
Current Collections Total
Collection Collections
Year Percent of Prior Total to Current
Collected Total Levy Amount of Levy Years Collections Levy
1978 607,046 407,224 67.08� 168,�77 575,701 94.84�
1979 585,105 461,550 78.88� 439,371 900,921 153.9$%
1980 655, 175 572,104 87 .32� 239,038 811 ,1 42 123.81�
0
N 1981 395,439 335,859 84.93% 95,963 �31,822 109.20%
1982 733,1 98 6�+9,�72 88.58� 95,962 7�5,434 101 .67� I
1983 981 ,733 908,531 92.54� 57,463 965,994 98.�►0�
1984 813,013 768,241 9�+.49� 79,617 847,858 104.29�
1985 715,1 85 698,756 97 .70� 84,781 783,537 109.56�
1986 631,296 631,165 99.98� 11,953 6�+3,118 101.87�
1987 572,851 552,168 96.39� 3,139 555,307 96.94%
City of Brooklyn Center TABLE 7
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
Ratio of Net
Less: Amount Bonded Debt Net Bonded
Fiscal Estimated Assessed Gross in Debt Net to Assessed Debt Per
Year Population Value Bonded Debt Service Funds Bonded Debt Values Capita
1978 33,700 $123,965,136 6,215,000 2,652,259 3,562,741 .02873:1 105.72
0
W
1979 32,950 129,893,447 5,475,000 3,138,481 2,336,519 .01799:1 70.91
1980 31,230 136,096,846 6,265,000 2,519,067 3,7�5,933 .02752:1 119.95
1981 30,990 165,106,705 5,650,000 3,031,39$ 2,618,602 .01586:1 84.50
1982 30,820 180,740,511 7,680,000 4,145,073 3,53�+,927 .01956:1 114.70
1983 30,830 200,157,503 7,985,000 4,849,112 3,135,888 .01567:1 101.72
1984 30,820 203,122,897 7,040,000 3,348,669 3,691,331 .01817:1 119.77
1985 30,630 208,916,656 11,550,000 4,871,780 6,678,220 .0319'7:1 218.03
1986 30,267 214,158,978 10,905,000 5,457,898 5,447,102 .0254�4:1 179.97
1987 29,759 $228,875,794 9,585,000 3,2�,5�6 6,304,454 .02755:1 211.85
City of Brooklyn Center Table_8
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1987
1
Assessed value, January 1, 198$ $228,875,794
Debt limit, 7.33� of assessed value 16,776,596
Total bonded debt 9,585,000
Deductions (See Note 5):
A. Bonds:
1. Special Assessment
Bonds 1,500,000
2. State Aid Street Bonds 240,000
3. Utility Revenue Bonds 225,000
4. Tax Increment Bonds 6,120,000
8,085,000
B. General Debt Service Funds 683,294
Total Deductions 8,768,294
1 Total Debt Applicable to Debt Limit 816
Legal Debt Margin, December 31, 1987 15 ,959 ,890
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1 -104-
City of Brooklyn Center TABLE 9
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1987
City of Brooklyn Center Share
Governmental Unit Gross Debt Sinking Funds Net Debt Per Cent Amount
Direct and Overlapping Debt
Direct Debt:
City of Brooklyn Center (1) 9,585,000 3,409,321 6,175,679 100.0� 6,175,679'
Overlapping Debt:
School Districts:
No. 281 (Robbinsdale) 8,110,000 2,848,213 5,261,787 10.2% 536,702
No. 11 (Anoka) 24,585,000 1,05�+,285 23,530,715 5.9� 1,3$$,312
No. 279 (Osseo) 53,115,000 2,573,595 50,541,u05 26.8� 13,545,097
No. 286 (Brooklyn Center) 320,000 64,840 255,160 100.0� 255,160
Area Vocational Technical School No. 287 5,900,000 954,387 �+,9�+5,613 4•9� 242,335
Metropolitan Transit 16,350,000 5,313,000 11,037,000 1.5% 165,555
Metropolitan Council (2) 39,385,000 21,395,676 17,989,324 1-5� 269,840
Metropolitan Airport (3) 0 0 0 0.096 0
o Hennepin County 61,025,000 7,062,382 53,962,618 2.7� 1,456,991
Hennepin County Park Reserve District 0 0 0 2.7� 0
i
Total Overlapping Debt 208,790,000 41,266,378 167,523,622 17,859,992
Total Direct and Overlapping Debt 218,375,000 44,675,699 173,b99,301 24,035,671
(1) Includes $1,500,000 debt o�tstanding to be paid f rom special assessments, $240,000 debt outstanding on State Aid Street
bonds, $225,000 debt outstanding on revenue bonds, and $6,120,000 debt outstanding on Tax Increment bonds.
(2) Excludes $253,247,000 (less $42,589,889 in sinking funds) of the Metropolitan Council issued G.O. sewer bonds. These
sewer bonds are supported from sewer charges to government units (including Brooklyn Center) within the metropolitan
sewer system.
(3) Excludes $126,125,000 (less $30,836,576 in sinking funds) of G.O. Airport bonds supported from airport user fees and
rentals.
Overlapping
Comparative Net Debt Ratios Chargeable to City Total Direct Debt Debt
Debt to assessed value 228,875,79�►) 10.50� 2.70� 7.80�
Debt to market value 864,837,250) 2.78% 0.71� 2.07%
Per capita debt, population 29,759) 807.68 207.52 600.15
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Cit of Brookl n Center TABLE 10
Y Y
RATIO OF ANNUAL DEBT SERVICE EXPENDITU RES FOR GENERAL
BONDED DEBT T0 TOTAL GENERAL EXPENDITU RES
Last Ten Fiscal Years
Ratio of
Total Debt Service
Total (1) General (2) to General
Year Principal ____Interest Debt Service Expenditures Expenditures
1978 220,000 160,180 380,180 3,996,283 9.51%
1979 210,000 146,9�5 356,905 4,629,146 7.71%
1980 195,000 134,211 329,211 4,722,011 6.97�
1981 185,000 226,785 411 ,785 5,330,337 7•73�
1982 195,000 22�1,100 419,100 6,056,275 6.92�
1983 240,000 210,620 450,620 6,726,636 6.70�
198� 255,000 250,132 505,132 7,209,109 7.01�
1985 255,000 251,095 506,095 9,$$5,047 5.12�
1986 275,000 507,558 782,558 9,�7�►,265 8.2b�
1987(3) 2,475,000 930,252 3,405,252 $11,813,3� 28•$3�
(1) For years 1978 through 1986 General Obl igation Bonds and G. 0. Tax Increment
Bonds are included. Fran 1987 onward, Improvement Bonds (formerly Special
Assessment Bonds) are also included.
(2) Includes General, Special Revenue, and Debt Service funds.
3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of
198'7 and the defeasance of Improvement Bonds of 1982•
I -106-
City of Brooklyn Center TABLE 11
SCH EDU LE OF R EV ENU E BOND CAV ERAG E
Last Ten Fiscal Years
Ratio of
Net
Net Revenue
Gross (1) Revenue to Debt
Year Revenue Expenses Available Principal Interest Total Service
197 8$ 1,371,519 817,154 554,365 35,000 24,375 59,375 9•337:1
1979 1,572,244 824,417 747,827 35,000 23,010 58,010 12.8g1:1
1980 1,950,3�� 952,850 997,�90 35,000 21,645 56,645 17.609:1
1981 2,272,211 1,189,203 1,083,008 40,000 20,280 60,280 17.966:1
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 2,38b,974 1,550,216 836,758 40,000 15,600 55,600 15.050:1
1985 2,435,238 1,5�9,645 885,593 45,000 14,0�10 59,040 15.000:1
1986 2,316,456 1,613,187 703,269 45,000 12,399 57,399 12.252:1
1987 2,33�,310 1,679,915 650,395 45,000 10,786 55,78b 11.659:1
(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
Construction Residential Construction Property Value*
Year Value Units Value Commercial Residentlal Non-Taxable
1978 5,247,131 239 6,816,300 140,651,752 285,436,500 $50,386,615
1979 $,209,394 76 3,392,700 161,917,915 330,196,500 50,386,615
1980 12,5�4,300 43 3,061,000 215,536,256 392,096,600 52,828,091
I 19$1 12,926,950 33 1,157,000 228,523,271 483,354,800 52,828,091
1982 2,�+97,700 70 2,055,000 235,045,689 490,430,400 52,828,Og1
1983 5,342,000 140 8,677,800 268,460,800 506,701,600 52,828,0 91
1984 6,037,900 77 8,954,300 201,274,889 586,929,400 62,287,088
1985 29,553,108 14 827,700 199,882,500 613,694,000 64,906,838
19� 14,689,661 157 9,737,806 246,784,100 608,890,900 92,384,868
1987 7,220,527 9 855,202 286,096,3Q� 634,230,700 $89,7�+5,168
Estimated market value
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City of Brooklyn Center TABLE 13
PRINCIPAL TAXPAYERS
December 31, 1987
Percentage
19$'7 of total
Market Market
Taxpayers Type of Business Valuation Value
Equitable Life Assurance
Society of America Brookdale Shopping Center 37,742,800 4.16�
Robert H. Bradl ey Office and Warehouse Building 13,092,400 1.44�
Norman Chazin Apartment Buildings 13,�83,300 1.44�
Ryan Constrcaction Office Buildings 12,848,500 1.42�
Shing].e Creek Plaza II Land, Warehouse and Off ice
Buildings 11,g25,500 1.31�
Commercial Partners Brookdale Square Shopping
Center 8,40�4,300 0.93�
Ttain Lake North Compatry Apartments 8 O.g2�
Cigna Real Estate Funds, Off ice Buildings 7,g80,000 0.87%
Ltd. Partnership
Sears Roebeck and Canpany Sears Departrnent Store 7,8g1,200 0.87�
Plaza Real Estate Partners Hotel/Motel 6,870,700 0.76%
Total Market Value 128,176,600 13.1%
r
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City of Brooklyn Center Table 14
SCHEDiJLE OF INSURANCE COVERAGE
Effective January 1 1988
Policy Period
Type of Coverage and Details Fran To Liability Limits
I. Statutory Liability to Employees
a. Workers' Compensation 01-01-88 01-01-89 Statutory
(participant in the League
of Minnesota Cities Insurance
Trust Self-Insured Workers'
Compensa tion Program)
II. Liabil ity to the Publ ic
a. General liability,
t comprehensive 01-01-88 01-01-89
(1) Bodily injury $600,000 canbined single
limit
(2) Property damage $600,000 canbined single
limit
(3) Personal injury $600,000 canbined single
limit
b. Automobile liability,
comprehensive 01-01-88 01-01-89
(1) Bodily injury $600,000 occurrence
(2) Property damage $600,000 occurrence
(3) Uninsured motorist $600,000 occurrence
c. Liquor stores' dram shop 01-01-88 01-01-8g $1,000,000 each common cause
III. Loss of Income on City Enterprises
a. Liquor stores 01-01-88 01-01-8g $450,000
b. Public utilities 01-01-88 01-01-89 $450,000
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City of Brooklyn Center Table 14
SCH EDU LE OF IN SU RANCE COV ERAG E
Effective January 1, 1988 (Continued fran prior page)
Bui 1 di n s
g
a nd
____Policy Period Structures Content:
(Replacement (Replacement
Type of Coverage and Details Fran To Cost) Cost)
-----I------c----------------------
N. nsuran e on City Property 01 01 88 01 01 89
a. Publ ic and institutional
property, all risk, blanket
$14,715,900; $1,000 deductibl e,
replacement value on buildings,
except stated value on Earle
Brawn Farm buildings
(1) Civic Center $4,683,000 468,000
(2) East Fire Station 504,000 56 ,000
(3) Municipal Service Garage $1,142,000 220,Q00
(4) Elevated Water Towers 3 locations $2,611,000 0
(5) Park Shelter Buildings 17 locations $1,270,000 51,000
(6) Piunp Houses 7 locations 440,000 120,000
(7) Lift Stations 9 locations 305,000 68,000
(8) Meter Station 14,000 0
(9) Storage Building 242,000 0
(10) Outdoor lighting sy stems 7 locations 285,000 0
(11) Liquor Store and Fire Station $�77,000 201,000
(12) Hunboldt Liquor Store 210,000 163,000
(131 Leased Liquor Store 0 205,000
(14) Movable Properties 0 154,97�
(15) Pedestrian Bridge �►31,000 0
(16) Picnic Shelter 48,000 0
(17) Earle Brawn Farm Buildings 501,900 0
Liabil ity Limits
b. Boiler and machinery 01-01-88 01-01-89 $3,000,000 per accident
c. Autanotive physical damage 01-01-88 01-01-89
(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,OOD
The comprehensive general liability includes the follawing additional coverages:
(a) .A11 snployees as additional insureds
(b) Personal injury coverage to include false arrest, libel, slander, wrongf'ul
entry or eviction or invasion of right of privacy.
(c) Broad contractual liability
d) Products 1 iabil ity
(e) Public Officials' liability
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City of Brooklyn Center TABLE 15
SCHEDiJLE OF CASH AND TEMPORARY CASH INVESTI�NTS
December 31, 1987
Cash in Banks:
First Brookdale State Bank
Brooklyn Center, Minnesota 20,192
First National Bank of Minneapol is,
Minneapolis, Minnesota 1,230
Temporary Investments:
Interest
T -_______Rate Maturity f_-____-
y�---------
Commercial Paper 7.620 1988 1,045,880
U.S. Treasury bills 6.g12 1988 225,722
U. S. Treasury bonds 4.25 1992 75,000
U.S. Treasury notes 6.21-8.34 1g88- 6,752,244
Federal Hane Loan Bank bonds 6.55 1988 10,828,797
Federal National Mortgage
Association bonds 7.05-12.00 1988-1992 6,576,062
Federal Farm Credit Bank bonds 9•�+5-11.50 1988 400,000 25 ,903 ,705
Interfund borraaings -(temporary impravement notes) 67g,228
Accrued interest on investments 422,489
Change funds 4,935
Total Cash and Temporary Cash Investments 27,031,779
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City of Brooklyn Center
MISCELLANEOUS STATISTICAL FACTS
December 31, 1987
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 Years Begins Janaury 1
Area of City 8 1/2 square miles
Miles of Streets:
City 104.25
County 6.49
State _10.79
Miles of Storm Sewers 3g.Ofi
Number of Street Li hts
g 949
Building Permits:
Number of Permits Issued:
1987 573
1986 604
1 985 521
198� 5 45
1 983 660
1982
1981 516
51 8
1980 563
197 9_ Y 6 06
197 8 818
Estimated Cost:
1987 10,421,724
1986 28,594,810
1985 32,328,938
1984 15,606,354
1983 ___Y.___ 16,096,550
1982 5,968,824
1981 16,1 90,205
1980 17,454,6g0
1979 13,081,520
197 8 13 0 81 5 2 0
Fire Protection:
Number of Stations 2
Number of Volunteer Firemen 32
Police Protection:
Number of Stations
Number of Full-time Employees �}4
Number of Part-time Employees 7
Police Department Vehicles 16
-113-
City of Brooklyn Center
MISCELLANEOUS STATISTICAL FACTS
December 31, 1987
i, Parks and Recreation:
Park property totals 522 acres developed to serve a wide variety of recreational
interests. Areas include playlots, playgrounds, playfie].ds, trails, nature areas
and an arboretun.
Full-time employees 13
Part-time employees seasonal 150
Pl ay groun ds 17
Park shelters 17
Ice skating rinks 10
Hockey rinks 6
Softball diamonds 26
Baseball diamonds 6
Tennis courts �g
Basketball courts �g
Municipal Water Plant:
Nunber of connections $,$4$
Average daily consunption 4,0�{0,094 gallons
Peak daily consunption 12,000,500 gallons
Plant capacity daily 16,500,000 gallons
Miles of water mains 111.69 miles
Nunber of fire hydrants $20
Nunber of wells g
Nunber of elevated reservoirs 3
Storage capacity 3,000,000 gallons
Water rate per thousand 35 cents
Municipal Sewer Plant:
Nunber of connections $,813
Miles of sanitary sewer 104.21
Daily disposal capacity 7,646,400 gallons
Nunber of lift stations 10
Residential rate $21.25 per q uarter
Municipal Liquor Stores (Off-Sale):
Nunber of aaned stores 2
N�nber of leased stores
1987 sales 2,527,159
City Employees:
As of December 31, 1987
Permanent or regular 126
Temporary or part-time 277
Total �03
Elections:
Last General Election November 4, 1986
Registered voters 19,�80
Votes cast 10,094
Percentage of registered voters voting 51.8�
Last Municipal Election 19�
Registered voters 19,480
Votes cast 10,094
Percentage of registered voters voting 51.8�
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City of Brooklyn Center
MISCELLANEOUS STATISTICAL FACTS
December 31, 1987
Popul ati on
1940 1, 87 0
1950 4,284
1960 24,356
19b5 (special census) 30,108
1980 31,230
1981 (per official estimates) 30,990
1982 (per official estimates) 30,820
1983 (per official estimates) 30,830
1984 (per official estimates) 30,820
1985 (per official estimates) 30,630
1986 (per official estimates) 30,267
1987 (per official estimates) 29,759
Educa ti on
Publ ic School s
School districts within Brooklyn Center (4)
No. 11 No. 286 No. 281 No. 279
(Anoka) (Earle Brawn) (Robbinsdale) (Osseo)
Total school buildings 35 2 22 21
School buildings within
Brooklyn Center 1 2 1 3
Total students registered 3z,190 1,526 14,112 18,054
Students fran Brooklyn
Center registered 989 1,376 570 1674
Total square miles in
school district 172 2.8 30 66.5
Square miles within
Brooklyn Center 1.5 2.8 2.25 2.5
1987 assessed valuation 772,721,444 $78,492,750 770,195,010 59�,287
1987 assessed valuation
I in Brooklyn Center 24,727,832 78,492,750 66,330,779 61,141 87
Parochial schools (1)
St. Alphonsus School grades 4 through 8- Total students registered: 302
Assessed valuation prior to fiscal disparies and tax increment calculations
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