HomeMy WebLinkAbout06-06-22 FCAC IT Y
C O UNC I L/F INANC I AL
C O M M IS S IO N M E E T I NG
City Hall Council Chambers
J une 6, 2022
AGE NDA
1.Call to Order - 6:30 p.m.
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City C ounc il packet is available to the public . The packet ring binder is loc ated at
the entrance of the council chambers.
2.Roll Call / Introductions
3.P resentation of Audit Report and M anagement Letter
a.Audit Report Presentation
4.Council / Commission Questions
5.S taff Overview of Comprehensive Annual F inancial Report
6.Council / Commission Questions
7.P resentation on L iquor S tore No. 2 P roject
a.Presentation
8.Adjourn
6/3/2022
1
CITY OF BROOKLYN CENTER
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2021
James H. Eichten, CPA
Jackie Huegel, CPA
Opinion on Financial Statements
Financial statements are fairly presented in
accordance with accounting principles generally
accepted in the United States of America
Testing of Internal Controls and Compliance
Internal controls over financial reporting
Compliance with laws and regulations related to
financial reporting
AUDITOR’S ROLE
6/3/2022
2
Minnesota Legal Compliance Audit
Compliance with Minnesota state laws and
regulations
Single Audit of Federal Awards
Opinion on Schedule of Federal Awards
Compliance with each major program
Internal Controls over compliance
AUDITOR’S ROLE
Audit Summary
Planned scope and timing of audit
Audit opinions and findings
MANAGEMENT REPORT
6/3/2022
3
Financial Report
Unmodified or Clean Opinion
Internal Controls Over Financial Reporting
No Findings
Legal Compliance Audit Findings
No Findings
Single Audit of Federal Awards
No Findings
AUDIT OPINIONS AND FINDINGS
Audit Summary
Governmental Funds Overview
MANAGEMENT REPORT (CONT.)
6/3/2022
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MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
Tax Rates
2019 2020 2021
Average tax rate
City 70.4 65.2 64.7
County 41.9 41.1 38.2
School 50.2 47.4 46.0
Special taxing 10.0 9.6 9.3
Total 172.5 163.3 158.2
City of Brooklyn Center
6/3/2022
5
MANAGEMENT REPORT (CONT.)
Year 2019 2020 2021
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,722 33,782 33,782
Property taxes 540$ 517$ 537$ 581$ 595$ 604$
Tax increments 34 33 44 165 189 210
Franchise fees and other taxes 49 60 46 55 38 44
Special assessments 54 39 54 63 52 55
Licenses and permits 36 39 46 36 29 23
Intergovernmental revenues 474 367 273 374 232 346
Charges for services 113 89 91 38 25 25
Other 83 69 69 64 36 17
Total revenue 1,383$ 1,213$ 1,160$ 1,376$ 1,196$ 1,324$
December 31, 2020
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide City of Brooklyn Center
MANAGEMENT REPORT (CONT.)
Year 2019 2020 2021
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,722 33,782 33,782
Current
General government 176$ 140$ 118$ 114$ 124$ 116$
Public safety 315 288 320 367 367 380
Street maintenance 146 122 112 76 63 75
Parks and recreation 100 112 95 97 80 109
All other 95 108 104 81 109 100
832$ 770$ 749$ 735$ 743$ 780$
Capital outlay
and construction 586$ 429$ 331$ 408$ 281$ 410$
Debt service
Principal 172$ 149$ 91$ 112$ 121$ 129$
Interest and fiscal 45 42 33 24 24 22
217$ 191$ 124$ 136$ 145$ 151$
Total expenditures 1,635$ 1,390$ 1,204$ 1,279$ 1,169$ 1,341$
State-Wide
December 31, 2020
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Brooklyn Center
6/3/2022
6
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
6/3/2022
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MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
6/3/2022
8
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
6/3/2022
9
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
6/3/2022
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Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
Government-Wide Financial
Statements
Legislative Updates
Accounting and Auditing Updates
MANAGEMENT REPORT (CONT.)
Unmodified or Clean Opinion on Financial
Statements
No Findings Reported
Continued Ongoing Assessment of
Financial Projections and Results Including
General, Other Operational and Enterprise
Fund Activities
SUMMARY
6/2/2022
1
2021 Annual
Comprehensive Financial
Report
October 8, 2018
Review
City Council/Financial Commission Joint Work Session ‐June 6, 2022
Andrew Splinter, Finance Director
General Fund
•October 8, 2018
•Negative operating budget results of $649,092
•Net decrease in fund balance of $1,045,729 as City budgeted for the
use of $396,637
•General Fund unassigned fund balance represents 51% of next year’s
budgeted expenditures
•Fund Balance >52% for capital projects would be transferred based on policy
2
6/2/2022
2
General Fund Revenues•October 8, 2018
•Revenues under budget by $376,236
3
2021 Significant Budget Variances Amount
Charges for Services ($438,455)
Licenses and Permits ($241,501)
Property Taxes (reduction in excess TIF)($115,922)
Investment earnings (net of fair value adjustment)($99,088)
Lodging Taxes $232,538
Intergovernmental (grants) $189,131
General Fund Expenditures•October 8, 2018
•Expenses over budget $707,502
4
2021 Significant Budget Variances Amount
Non‐departmental (largely civil unrest costs)$(353,880)
Communications and Engagement $(98,484)
Police Protection $377,621
Convention Bureau $(112,117)
Public Works $(95,752)
6/2/2022
3
Enterprise Funds
•Municipal Liquor
•Operating loss of $329,877 which was offset by insurance proceeds in nonoperating
revenues of $349,276, compared to operating loss of $89,083 in 2020.
•Both stores were closed for a period of time following Civil Unrest
•EBHC
•Operating loss of $1,273,967 compared to a operating loss of $1,721,203 in 2020.
•$300,000 DEED grant to support operations
•Continued reduced activity due to COVID19 restrictions
5
Enterprise Fund Change in Cash
Municipal Liquor ($595,015)
EBHC ($849,440)
Utility Funds
•Water received $1.9 million in bond proceeds to pay its’ portion of neighborhood
improvement project costs
•Sanitary Sewer received $1.4 million in bond proceeds as a result of planned project costs
•Storm Drainage received $2.2 million in bond proceeds to pay its’ portion of Brooklyn
Boulevard Phase II costs
6
Utility Fund Change in Cash
Water ($776,507)
Sanitary Sewer ($568,967)
Storm Drainage $879,112
Street Light ($357,478)
Recycling ($280)
6/2/2022
4
Other
•Completed work on Interstate Area Improvements‐
$1.3 million
•Continued work on Brooklyn Blvd. Improvements ‐
$1.4 million
•Grandview South Area Improvements ‐$8.2 million
•Mill and overlay projects ‐$780,000
•Ryan Lake Area Imp– $1.2 million
•Playground equipment ‐$287,919
7
Significant capital investments made during the year ($16.9 million)
•Central Garage ‐Added/Replaced 17 pieces of equipment totaling $2,723,988, primarily public
works, fire, and police vehicles.
•Debt –Retired $7,192,000 of principal on previously issued bonds and issued $8,010,000 in new
debt for infrastructure projects.
Other Continued…
•October 8, 2018
•Net Investment loss of $150,980, compared to an investment gain of
$1,452,728 in 2020
•Net investment loss includes:
•Investment income of $544,056 (2020 was $938,061)
•Unrealized loss on investments of $695,035 (2020 was gain of $518,949)
•Unrealized (paper loss) due to increasing interest rates
•Investments anticipated to be held to maturity
•City/EDA owned $18.0 million in assets held for resale at year‐end
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6/2/2022
5
Questions?
9
Management Report
for
City of Brooklyn Center, Minnesota
December 31, 2021
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To the City Council and Management
City of Brooklyn Center, Minnesota
We have prepared this management report in conjunction with our audit of the City of Brooklyn Center,
Minnesota’s (the City) financial statements for the year ended December 31, 2021. We have organized
this report into the following sections:
•Audit Summary
•Governmental Funds Overview
•Enterprise Funds Overview
•Government-Wide Financial Statements
•Legislative Updates
•Accounting and Auditing Updates
We would be pleased to further discuss any of the information contained in this report or any other
concerns that you would like us to address. We would also like to express our thanks for the courtesy and
assistance extended to us during the course of our audit.
The purpose of this report is solely to provide those charged with governance of the City, mana gement,
and those who have responsibility for oversight of the financial reporting process comments resulting
from our audit process and information relevant to city finances in Minnesota . Accordingly, this report is
not suitable for any other purpose.
Minneapolis, Minnesota
May 31, 2022
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
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AUDIT SUMMARY
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the City Council, administration, or those charged
with governance of the City.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
OF AMERICA, GOVERNMENT AUDITING STANDARDS, AND TITLE 2 U.S. CODE OF FEDERAL
REGULATIONS (CFR) PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND
AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE)
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2021. Professional standards require that we provide you with information about our
responsibilities under auditing standards generally accepted in the United States of America, Government
Auditing Standards, the Uniform Guidance, as well as certain information related to the planned scope
and timing of our audit. We have communicated such information to you verbally, in our audit
engagement letter, and in a separate letter dated April 20, 2022. Professional standards also require that
we communicate the following information related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINION AND FINDINGS
Based on our audit of the City’s financial statements for the year ended December 31, 2021:
• We have issued an unmodified opinion on the City’s basic financial statements.
• We reported no deficiencies in the City’s internal control over financial reporting that we
considered to be material weaknesses.
• The results of our testing disclosed no instances of noncompliance required to be reported under
Government Auditing Standards.
• We reported that the Schedule of Expenditures of Federal Awards is fairly stated, in all material
respects, in relation to the basic financial statements.
• The results of our tests indicate that the City has complied, in all material respects, with the types
of compliance requirements that could have a direct and material effect on each of its major
federal programs.
• We reported no deficiencies in the City’s internal controls over compliance that we considered to
be material weaknesses with the types of compliance requirements that could have a direct and
material effect on each of its major federal programs.
• We reported no findings based on our testing of the City’s compliance with Minnesota laws and
regulations.
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FOLLOW-UP ON PRIOR YEAR FINDINGS AND RECOMMENDATIONS
As a part of our audit of the City’s financial statements for the year ended December 31, 2021, we
performed procedures to follow-up on the findings and recommendations that resulted from our prior year
audit. We reported the following finding that was corrected by the City in the current year:
• During our audit of the year ended December 31, 2020, we noted one of two contracts tested were
not in compliance with Minnesota Statutes requiring the City to obtain a Form IC134 or
Contractor’s Withholding Affidavit prior to making the final payment to a contractor. Based on
our testing, there was no similar finding in the current year.
OTHER OBSERVATIONS AND RECOMMENDATIONS
Uniform Guidance Written Procedures
The Uniform Guidance requires the City to have written procedures. During our audit, we noted that the
City had developed and adopted written federal grant procedures; however, these did not fully address
procedures specific to cash management, cost principles, budget to actual reviews, and subrecipient
monitoring as it relates to federal awards.
Federal Uniform Guidance requires the City to have documented cash management procedures in
accordance with 2 CFR 200.305, which includes payments for allowable costs charged to a federal
program among other things.
Federal Uniform Guidance requires the City to have documented cost principles for determining the
allowability of costs in accordance with 2 CFR 200 Subpart E – Cost Principles.
Federal Uniform Guidance requires the City to have documented budget to actual procedures that
includes budget to actual comparison of expenditures for each federal award in accordance with 2 CFR
§ 200.302(b)(5).
Federal Uniform Guidance requires nonfederal entities to have and use documented subrecipient
monitoring and management procedures consistent with 2 CFR § 200.331-333 for disbursements of
federal funds determined to be a federal subaward. A subaward is an agreement between the City and an
outside party for the purpose of carrying out a portion of a federal award, which creates a federal
assistance relationship with the subrecipient. The Uniform Guidance requirements for pass -through
entities include, but are not limited to:
• Providing the subrecipient with the best information available to describe the key identifiers and
terms of the federal award and subaward;
• A written risk assessment evaluating each subrecipient ’s risk of noncompliance with federal
statutes, regulations, and the terms and conditions of the subaward for purposes of determining
the appropriate subrecipient monitoring;
• Written documentation of monitoring activities of the subrecipient as necessary to ensure that the
subaward is used for authorized purposes, in compliance with federal statutes, regulations, and
the terms and conditions of the subaward, and that the subaward performance goals are achieved;
and
• Written procedures verifying that every subrecipient is audited as required by the Uniform
Guidance Subpart F when it is expected that the subrecipient’s federal awards expended during
the respective fiscal year equaled or exceeded the threshold set forth in 2 CFR § 200.501.
We recommend that the City review its current federal grant procedures to ensure they include and are
consistent with the Uniform Guidance requirements.
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Untimely Deposit of Golf Course Cash Receipts
As part of our current year audit, we noted that cash receipts at the golf course were not remitted to the
Finance Department at City Hall in a timely manner and, consequently, were not deposited in a timely
manner. An important element of internal accounting controls over cash receipts includes timely deposits
and the security of funds. It is our recommendation that the City review procedures for receipts and
deposits at the golf course to ensure all cash receipts are deposited timely.
SIGNIFICANT ACCOUNTING POLICIES
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No
new accounting policies were adopted and the application of existing policies was not changed during the
year ended December 31, 2021.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
• Net Other Post-Employment Benefits (OPEB) and Pension Liabilities – The City has
recorded liabilities and activity for OPEB and pension benefits. These obligations are calculated
using actuarial methodologies described in Governmental Accounting Standards Board Statement
Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected
changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and
employee turnover.
• Depreciation – Management’s estimates of depreciation expense are based on the estimated
useful lives of the assets.
• Compensated Absences – Management’s estimate is based on current rates of pay and sick leave
balances.
• Assets Held for Resale – Management’s estimates of this asset are based on the lower of cost or
acquisition value.
We evaluated the key factors and assumptions used by management to develop these accounting estimates
in determining that they are reasonable in relation to the basic financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The disclosures included in the notes to the basic financial statements related to OPEB
and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and
complex estimates involved in determining the disclosures.
The financial statement disclosures are neutral, consistent, and clear.
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CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatement s identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. There were no misstatements detected as a result of audit procedures that were material,
either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter dated May 31, 2022.
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to
our retention.
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OTHER MATTERS
We applied certain limited procedures to the management’s discussion and analysis (MD&A) and the
pension and OPEB-related required supplementary information (RSI) that supplements the basic financial
statements. Our procedures consisted of inquiries of management regarding the methods of preparing the
information and comparing the information for consistency with management ’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on
the RSI.
We were engaged to report on the combining and individual fund statements and schedules accompanying
the financial statements and the separately issued Schedule of Expenditures of Federal Awards, which are
not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the combining and
individual fund statements and schedules to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section and statistical section, which accompany the
financial statements, but are not RSI. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on it.
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GOVERNMENTAL FUNDS OVERVIEW
This section of the report provides you with an overview of the financial trends and activities of the City’s
governmental funds, which includes the General, special revenue, debt service, and capital project funds.
These funds are used to account for the basic services the City provides to all of its citizens, which are
financed primarily with property taxes. The governmental fund information in the City’s financial
statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current
assets to finance its current liabilities.
PROPERTY TAXES
Minnesota cities rely heavily on local property tax levies to support their governmental fund activities.
For the 2020 fiscal year, local ad valorem property tax levies provided 40.9 percent of the total
governmental fund revenues for cities over 2,500 in population, and 36.5 percent for cities under 2,500 in
population. Total property taxes levied by all Minnesota cities for taxes payable in 2021 increased
4.0 percent compared to the prior year, and 5.9 percent for all taxes payable in 2022.
The total tax capacity value of property in Minnesota cities increased about 6.3 percent for the 2021 levy
year. The tax capacity values used for levying property taxes are based on the assessed market values for
the previous fiscal year (e.g., tax capacity values for taxes levied in 2021 were based on assessed market
values as of January 1, 2020), so the trend of change in these tax capacity values lags somewhat behind
the housing market and economy in general.
The City’s taxable market value increased 10.7 percent for taxes payable in 2020 and increased
8.2 percent for taxes payable in 2021. The following graph shows the City’s changes in taxable market
value over the past 10 years:
$–
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Taxable Market Value
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Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s
property classification system to each property’s market value. Each property classification, such as
commercial or residential, has a different calculation and uses different rates . Consequently, a city’s total
tax capacity will change at a different rate than its total market value, as tax capacity is affected by the
proportion of its tax base that is in each property classification from year-to-year, as well as legislative
changes to tax rates. The City’s tax capacity increased 10.2 percent for taxes payable in 2020 and
increased 5.1 percent for taxes payable in 2021.
The following graph shows the City’s change in tax capacities over the past 10 years:
$–
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Tax Capacity
The following table presents the average tax rates applied to city residents for each of the last three levy
years:
2019 2020 2021
Average tax rate
City 70.4 65.2 64.7
County 41.9 41.1 38.2
School 50.2 47.4 46.0
Special taxing 10.0 9.6 9.3
Total 172.5 163.3 158.2
City of Brooklyn Center
The City’s portion of the tax capacity rates for Brooklyn Center residents, as well as the total tax capacity
rate, decreased from the prior year.
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GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES
The following table presents the per capita revenue of the City’s governmental funds for the past
three years, along with state-wide averages.
We have included the most recent comparative state-wide averages available from the Office of the State
Auditor to provide a benchmark for interpreting the City’s data. The amounts received from the typical
major sources of governmental fund revenue will naturally vary between cities based on factors such as a
city’s stage of development, location, size and density of its population, property values, services it
provides, and other attributes. It will also differ from year -to-year, due to the effect of inflation and
changes in its operation. Also, certain data in these tables may be classified differently than how they
appear in the City’s financial statements in order to be more comparable to the state-wide information,
particularly in separating capital expenditures from current expenditures.
We have designed this section of our management report using per capita data in order to better identify
unique or unusual trends and activities of the City. We intend for this type of comparative and trend
information to complement, rather than duplicate, information in the MD&A. An inherent difficulty in
presenting per capita information is the accuracy of the population count, which for most years is based
on estimates.
Year 2019 2020 2021
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,722 33,782 33,782
Property taxes 540$ 517$ 537$ 581$ 595$ 604$
Tax increments 34 33 44 165 189 210
Franchise fees and other taxes 49 60 46 55 38 44
Special assessments 54 39 54 63 52 55
Licenses and permits 36 39 46 36 29 23
Intergovernmental revenues 474 367 273 374 232 346
Charges for services 113 89 91 38 25 25
Other 83 69 69 64 36 17
Total revenue 1,383$ 1,213$ 1,160$ 1,376$ 1,196$ 1,324$
December 31, 2020
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide City of Brooklyn Center
The City relies more on property tax revenue for its governmental funds revenue, compared to the
average Minnesota city. The City continues to generate significantly more tax increment revenue
per capita than average, as it has made extensive use of this tool to finance commercial development.
The City’s per capita governmental funds revenue for 2021 was $1,324, an increase of about 10.7 percent
from the prior year. The majority of this increase was in intergovernmental revenues, which increased
$114 per capita, due to the federal grant and county funds received for the Brooklyn Boulevard
improvement project in the current year.
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The expenditures of governmental funds will also vary from state -wide averages and from year-to-year,
based on the City’s circumstances. Expenditures are classified into three types as follows:
• Current – These are typically the general operating type expenditures occurring on an annual
basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues.
• Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluctuating significantly from year-to-year. Many of these expenditures are
project-oriented, and are often funded by specific sources that have benefited from the
expenditure, such as special assessment improvement projects.
• Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor . Some debt may be repaid
through specific sources, such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The City’s expenditures per capita of its governmental funds for the past three years, together with
state-wide averages, are presented in the following table:
Year 2019 2020 2021
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,722 33,782 33,782
Current
General government 176$ 140$ 118$ 114$ 124$ 116$
Public safety 315 288 320 367 367 380
Street maintenance 146 122 112 76 63 75
Parks and recreation 100 112 95 97 80 109
All other 95 108 104 81 109 100
832$ 770$ 749$ 735$ 743$ 780$
Capital outlay
and construction 586$ 429$ 331$ 408$ 281$ 410$
Debt service
Principal 172$ 149$ 91$ 112$ 121$ 129$
Interest and fiscal 45 42 33 24 24 22
217$ 191$ 124$ 136$ 145$ 151$
Total expenditures 1,635$ 1,390$ 1,204$ 1,279$ 1,169$ 1,341$
State-Wide
December 31, 2020
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Brooklyn Center
The City’s governmental funds current per capita expenditures are higher than state-wide averages for
cities in the same population class. The City’s current operating costs are higher than average, mainly due
to above average public safety costs. The City’s current expenditures increased $37 per capita in 2021,
mainly due to the $29 increase in parks and recreation, due to reduced COVID-19 restrictions on
community center operations and recreation programs. Capital outlay costs per capita increased $129 in
the current year, due to the Brooklyn Boulevard improvement project.
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GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2021, presented both by fund balance classification and by fund:
2021 2020 Change
Fund balances of governmental funds
Total by classification
Nonspendable 73,526$ 85,703$ (12,177)$
Restricted 37,577,517 34,032,886 3,544,631
Committed 9,002,823 7,631,587 1,371,236
Assigned 466,716 3,249,137 (2,782,421)
Unassigned 12,877,456 12,136,345 741,111
Total governmental funds 59,998,038$ 57,135,658$ 2,862,380$
Total by fund
General 13,159,839$ 14,205,568$ (1,045,729)$
Tax Increment District No. 3 26,214,918 23,057,146 3,157,772
Debt Service 4,809,151 4,398,682 410,469
Capital Improvements 2,578,668 773,207 1,805,461
Municipal State Aid for Construction 1,956,119 2,672,384 (716,265)
Special Assessment Construction 466,716 1,480,133 (1,013,417)
Street Reconstruction 5,054,565 5,129,774 (75,209)
Nonmajor funds 5,758,062 5,418,764 339,298
Total governmental funds 59,998,038$ 57,135,658$ 2,862,380$
Governmental Funds Change in Fund Balance
Fund Balance
as of December 31,
In total, the fund balances of the City’s governmental funds increased by $2,862,380 during the year
ended December 31, 2021. The majority of the increase was in restricted and committed fund balances
offset by the decrease in assigned fund balance. Restricted fund balances increased $3,544,631, mainly in
funds restricted for tax increment financing. Committed fund balances increased $1,371,236, mainly in
funds committed for capital improvements. These increases were offset by the $2,782,421 decrease in
funds assigned for capital improvements in the General Fund and Special Assessment Construction Fund.
-11-
GENERAL FUND
The City’s General Fund accounts for the financial activity of the basic services provided to the
community. The primary services included within this fund are the administration of the municipal
operation, police and fire protection, building inspection, streets and highway maintenance, and parks and
recreation. The graph below illustrates the change in the General Fund financial position over the last
five years. We have also included a line representing annual expenditures to reflect the change in the size
of the General Fund operation over the same period.
2017 2018 2019 2020 2021
Fund Balance $11,355,203 $11,563,825 $12,524,217 $14,205,568 $13,159,839
Cash (Net)$12,057,840 $12,199,624 $13,671,153 $14,812,008 $15,481,421
Expenditures $19,873,539 $21,181,481 $21,958,748 $22,006,896 $23,866,793
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$22,000,000
$24,000,000
$26,000,000
General Fund Financial Position
Year Ended December 31,
The City’s General Fund cash and investments balance (net of interfund borrowing) at December 31,
2021 was $15,481,421, which increased $669,413 from 2020. Total fund balance at December 31, 2021
was $13,159,839, a decrease of $1,045,729 from the prior year.
Having an appropriate fund balance is an important factor in assessing the City’s financial health because
a government, like any organization, requires a certain amount of equity to operate. Generally, the amount
of equity required typically increases as the size of the operation increases. A healthy financial position
allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows
for the adequate and consistent funding of services, repairs, and unexpected costs; and can be a factor in
determining the City’s bond rating and resulting interest costs.
The City has an approved fund balance policy that states the General Fund will manage its cash flow by
having a year-end target unassigned fund balance of between 50 percent and 52 percent of next year’s
General Fund budgeted expenditures. At December 31, 2021, the City’s General Fund had an unassigned
fund balance of 51 percent of the subsequent year’s budgeted expenditures.
-12-
The following graph reflects the City’s General Fund revenue sources for 2021 compared to budget:
Other
Charges for Services
Intergovernmental
Licenses and Permits
Taxes
General Fund Revenue
Budget Actual
Total General Fund revenues for 2021 were $22,927,654, which was $376,236 (1.6 percent) under the
final budget. Charges for services and licenses and permits revenue were $438,455 and $241,501 under
budget, respectively. Charges for services were under budget, mainly due to recreation fees and
community center fees being less than anticipated. Licenses and permits were under budget, mainly due
to reduced building activity in 2021. These variances were offset by intergovernmental and tax revenues
over budget by $189,131 and $116,616, respectively. Intergovernmental revenue was over budget, mainly
due to the recognition of American Rescue Plan Act funds, which were not included in the budget. Taxes
were over budget, mainly in lodging taxes, due to a conservative budget in the current year.
The following graph presents the City’s General Fund revenues by source for the last five years:
Taxes Intergovernmental Other
2017 $16,766,847 $1,496,165 $2,275,377
2018 $17,361,854 $1,658,391 $2,663,288
2019 $18,357,019 $1,692,425 $2,929,696
2020 $18,800,513 $3,371,120 $1,926,988
2021 $19,164,973 $2,043,721 $1,718,960
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
General Fund Revenue by Source
Year Ended December 31,
Overall, General Fund revenues decreased $1,170,967 (4.9 percent) from the previous year, mainly in
intergovernmental revenue. Intergovernmental revenue decreased $1,327,399, due to receipt of the
Coronavirus Relief Funds in the prior year.
-13-
The following graph illustrates the components of General Fund spending for 2021 compared to budget:
Other
Parks and Recreation
Public Works
Public Safety
General Government
General Fund Expenditures
Budget Actual
Total General Fund expenditures for 2021 were $23,866,793, which was $331,266 (1.4 percent) more
than budget. The largest variances occurred in the other and public safety functions. Other expenditures
were $500,077 over budget, mainly in the nondepartmental department driven by expenditures responding
to civil unrest in the City. Public safety expenditures were $171,079 under budget, mainly in the police
protection department, due to vacant positions.
The following graph presents the City’s General Fund expenditures by function for the last five years:
General
Government Public Safety Public Works Parks and
Recreation Other
2017 $3,223,766 $10,687,408 $2,037,136 $2,703,475 $1,221,754
2018 $3,605,573 $11,201,317 $2,234,407 $2,761,005 $1,379,179
2019 $3,545,278 $11,861,461 $2,288,390 $2,839,662 $1,423,957
2020 $3,971,858 $12,267,694 $2,034,162 $2,381,699 $1,351,483
2021 $3,701,073 $12,750,786 $2,309,155 $3,286,003 $1,819,776
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General Fund Expenditures by Function
Year Ended December 31,
General Fund expenditures increased by $1,859,897, or 8.5 percent, from the prior year. The majority of
the increase was in the parks and recreation, public safety, and other expenditure functions. Parks and
recreation expenditures increased $904,304, mainly in the recreation programs and community center
departments, due to reduced COVID-19 restrictions. Public safety expenditures increased $483,092,
mainly in the police and fire protection departments. The increase in other expenditures of $468,293 is in
the nondepartmental department, driven by expenditures responding to civil unrest in the City as noted
above.
-14-
ENTERPRISE FUNDS OVERVIEW
The City maintains several enterprise funds to account for services the City provides that are financed
primarily through fees charged to those utilizing the service. This section of the report provides you with
an overview of the financial trends and activities of the City’s enterprise funds, which include the
Municipal Liquor, Earle Brown Heritage Center, Water Utility, Sanitary Sewer Utility, Storm Drainage
Utility, Street Light Utility, and Recycling Utility Funds.
The utility funds comprise a considerable portion of the City’s activities. These funds significantly help to
defray overhead and administrative costs and provide additional support to general government operations
by way of annual transfers. We understand that the City is proactive in reviewing these activities on an
ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over
the years, we have emphasized to our city clients the importance of these utility operations being
self-sustaining, preventing additional burdens on general government funds. This would include the
accumulation of net position for future capital improvements and to provide a cushion in the event of a
negative trend in operations.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2021, presented both by classification and by fund:
2021 2020 Change
Net position of enterprise funds
Total by classification
Net investment in capital assets 44,340,339$ 43,786,262$ 554,077$
Unrestricted 15,891,221 17,132,524 (1,241,303)
Total enterprise funds 60,231,560$ 60,918,786$ (687,226)$
Total by fund
Municipal Liquor 2,559,864$ 2,611,035$ (51,171)$
Earle Brown Heritage Center 3,580,998 4,539,013 (958,015)
Water Utility 13,426,364 13,225,747 200,617
Sanitary Sewer Utility 16,092,902 15,923,860 169,042
Storm Drainage Utility 21,487,986 21,635,354 (147,368)
Street Light Utility 2,807,327 2,697,489 109,838
Recycling Utility 276,119 286,288 (10,169)
Total enterprise funds 60,231,560$ 60,918,786$ (687,226)$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
In total, the net position of the City’s enterprise funds decreased by $687,226 during the year ended
December 31, 2021, mainly in unrestricted net position in the Earle Brown Heritage Center Fund.
-15-
WATER FUND
The following graph presents five years of operating results for the Water Fund:
2017 2018 2019 2020 2021
Oper Rev $3,543,323 $3,807,272 $3,760,995 $4,206,283 $4,610,129
Oper Exp $3,158,986 $3,270,522 $3,702,180 $3,924,010 $4,058,995
Oper Inc (Loss)$384,337 $536,750 $58,815 $282,273 $551,134
Oper Inc Excl Dep $2,019,592 $2,130,291 $1,723,736 $2,082,391 $2,448,887
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
$2,750,000
$3,000,000
$3,250,000
$3,500,000
$3,750,000
$4,000,000
$4,250,000
$4,500,000
$4,750,000
Water Fund
Year Ended December 31,
The Water Fund ended 2021 with a net position of $13,426,364, an increase of $200,617 from the prior
year. Of this, $10,400,978 represents the net investment in utility distribution system capital assets,
leaving $3,025,386 of unrestricted net position.
Water Fund operating revenue was $4,610,129 for 2021, an increase of $403,846 (9.6 percent) from the
prior year, due to an approved rate increase and increase in consumption in the current year. Operating
expenses of $4,058,995 were $134,985 (3.4 percent) more than last year, mainly due to an increase in
personal services expense and depreciation expense in the current year.
-16-
SANITARY SEWER FUND
The following graph presents five years of operating results for the Sanitary Sewer Fund:
2017 2018 2019 2020 2021
Oper Rev $4,287,674 $4,406,741 $4,555,940 $4,662,342 $4,680,679
Oper Exp $3,969,011 $4,121,002 $4,353,701 $4,366,560 $4,348,566
Oper Inc (Loss)$318,663 $285,739 $202,239 $295,782 $332,113
Oper Inc Excl Dep $1,216,466 $1,188,019 $1,194,190 $1,273,643 $1,363,032
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
$2,750,000
$3,000,000
$3,250,000
$3,500,000
$3,750,000
$4,000,000
$4,250,000
$4,500,000
$4,750,000
Sanitary Sewer Fund
Year Ended December 31,
The Sanitary Sewer Fund ended 2021 with a net position of $16,092,902, an increase of $169,042 from
the prior year. Of this, $10,943,109 represents the net investment in the sanitary sewer capital assets,
leaving $5,149,793 of unrestricted net position.
Sanitary Sewer Fund operating revenues for 2021 were $4,680,679, which was an increase of $18,337
(0.4 percent) from the prior year, due to an approved rate increase offset by a decrease in consumption.
Operating expenses for 2021 were $4,348,566, which was a decrease of $17,994 (0.4 percent) from the
prior year. The largest operating expense of this fund is to Metropolitan Council Environmental Services
(MCES) for sewer service charges. MCES disposal charges in 2021 decreased by $99,006 from the prior
year.
-17-
STORM DRAINAGE FUND
The following graph presents five years of operating results for the Storm Drainage Fund:
2017 2018 2019 2020 2021
Oper Rev $1,598,374 $1,681,234 $1,680,204 $1,691,946 $1,770,889
Oper Exp $1,815,673 $1,881,402 $2,351,376 $2,304,316 $2,307,558
Oper Inc (Loss)$(217,299)$(200,168)$(671,172)$(612,370)$(536,669)
Oper Inc Excl Dep $1,060,584 $1,109,286 $765,936 $819,380 $907,523
$(750,000)
$(500,000)
$(250,000)
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
Storm Drainage Fund
Year Ended December 31,
The Storm Drainage Fund ended 2021 with a net position of $21,487,986, a decrease of $147,368 from
the prior year. Of this, $17,103,439 represents the net investment in capital assets, leaving $4,384,547 of
unrestricted net position.
Storm Drainage Fund operating revenues for 2021 were $1,770,889, which was an increase of $78,943
(4.7 percent) from the prior year, due to an approved rate increase.
Operating expenses for 2021 were $2,307,558, a slight increase of $3,242 from the prior year.
The Storm Drainage Fund received capital contributions of $485,710 from governmental activities in the
current year.
-18-
OTHER ENTERPRISE FUNDS
Liquor Fund
The following graph presents five years of operating results for the Liquor Fund:
2017 2018 2019 2020 2021
Sales $6,495,300 $6,743,790 $6,855,696 $5,490,543 $5,556,568
Cost of Sales $4,769,844 $4,865,400 $5,008,694 $3,989,186 $4,130,013
Oper Exp $1,434,340 $1,613,573 $1,647,164 $1,590,440 $1,756,432
Oper Inc (Loss)$291,116 $264,817 $199,838 $(89,083)$(329,877)
Oper Inc Excl Dep $312,919 $286,620 $218,292 $18,349 $(210,359)
$(500,000)
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
Liquor Fund
Year Ended December 31,
The Liquor Fund ended 2021 with a net position of $2,559,864, a decrease of $51,171 from the prior year.
Of the net position balance, $731,019 represents the net investment in liquor capital assets, leaving
$1,828,845 of unrestricted net position.
Liquor sales for 2021 were $5,556,568, which is $66,025 (1.2 percent) more than the prior year.
Operating expenses of $1,756,432 represented an increase of $165,992, mainly in personal services
expense. This fund had an increase in nonoperating revenues, due to insurance proceeds received for lost
revenue during civil unrest in the City.
The Liquor Fund had an operating loss of $329,877 in 2021, compared to an operating loss of $89,083 in
2020.
The Liquor Fund’s gross profit margin was 25.67 in fiscal 2021, which is lower than the average gross
profit margin of 26.86 seen over the previous five years.
-19-
Earle Brown Heritage Center Fund
The following graph presents five years of operating results for the Earle Brown Heritage Center Fund:
2017 2018 2019 2020 2021
Sales and User Fees $4,891,574 $4,844,775 $5,066,519 $1,304,966 $1,423,803
Cost of Sales $2,257,315 $2,208,993 $2,385,593 $826,353 $768,579
Oper Exp $2,519,580 $2,660,841 $2,831,460 $2,199,816 $1,929,191
Oper Inc (Loss)$114,679 $(25,059)$(150,534)$(1,721,203)$(1,273,967)
Oper Inc Excl Dep $293,066 $174,805 $75,349 $(1,462,494)$(1,018,888)
$(2,000,000)
$(1,600,000)
$(1,200,000)
$(800,000)
$(400,000)
$–
$400,000
$800,000
$1,200,000
$1,600,000
$2,000,000
$2,400,000
$2,800,000
$3,200,000
$3,600,000
$4,000,000
$4,400,000
$4,800,000
$5,200,000
Earle Brown Heritage Center Fund
Year Ended December 31,
The Earle Brown Heritage Center Fund ended 2021 with a net position of $3,580,998, a decrease of
$958,015 from the prior year. Of the net position balance, $3,221,472 represents investments in Earle
Brown Heritage Center capital assets, leaving $359,526 of unrestricted net position.
Earle Brown Heritage Center Fund sales and user fees for 2021 were $1,423,803, which is $118,837
(9.1 percent) higher than prior year. Operating expenses for 2021 were $1,929,191, a decrease of
$270,625 from the prior year, mainly in personal services and other services expense. Revenues and
expenses in this fund continue to be impacted by COVID-19 in the current year. During fiscal 2021, this
fund had an increase in nonoperating revenues, due to Coronavirus Relief Funds received to support
operations.
During fiscal 2021, this fund experienced depreciation expense totaling $255,079.
-20-
GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government-wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what the City owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, the Statement
of Net Position divides the net position into three components:
• Net Investment in Capital Assets – The portion of net position reflecting equity in capital assets
(i.e., capital assets minus related debt).
• Restricted Net Position – The portion of net position equal to resources whose use is legally
restricted minus any noncapital-related liabilities payable from those same resources.
• Unrestricted Net Position – The residual balance of net position after the elimination of net
investment in capital assets and restricted net position.
The following table presents the components of the City’s net position as of December 31, 2021 and 2020
for governmental activities and business-type activities:
2021 2020 Change
Net position
Governmental activities
Net investment in capital assets 57,524,408$ 54,471,240$ 3,053,168$
Restricted 42,528,484 38,473,882 4,054,602
Unrestricted 10,698,650 9,335,442 1,363,208
Total governmental activities 110,751,542 102,280,564 8,470,978
Business-type activities
Net investment in capital assets 44,340,339 43,786,262 554,077
Unrestricted 13,329,034 14,484,003 (1,154,969)
Total business-type activities 57,669,373 58,270,265 (600,892)
Total net position 168,420,915$ 160,550,829$ 7,870,086$
As of December 31,
The City’s total net position at December 31, 2021 was $7,870,086 higher than the previous year-end. Of
the increase, $8,470,978 came from governmental activities and an offset of $600,892 came from
business-type activities. The increase in the governmental activities was due to increases in restricted
balances for tax increment and debt service. Net investment in capital assets in the governmental activities
increased, due to continued investment in infrastructure.
The business-type activities net position decreased in the current year as previously discussed.
-21-
STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other
transactions that increase or reduce total net position. These amounts represent the full cost of providing
services. The Statement of Activities provides a more comprehensive measure than just the amount of
cash that changed hands, as reflected in the fund-based financial statements. This statement includes the
cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in the net position of the City for the years ended December 31,
2021 and 2020:
2020
Program
Expenses Revenues Net Change Net Change
Governmental activities
General government 4,954,933$ 360,099$ (4,594,834)$ (4,421,457)$
Public safety 12,251,370 1,667,598 (10,583,772) (11,242,209)
Public works 12,756,066 11,542,432 (1,213,634) (1,771,082)
Community service 210,488 – (210,488) (171,344)
Parks and recreation 3,859,928 673,852 (3,186,076) (2,762,996)
Economic development 2,192,700 130,684 (2,062,016) (2,532,691)
Interest on long-term debt 565,379 – (565,379) (634,139)
Business-type activities
Municipal liquor 5,911,141 5,905,844 (5,297) (196,366)
Earle Brown Heritage Center 2,670,277 1,442,635 (1,227,642) (1,725,061)
Water utility 4,452,157 4,680,155 227,998 (116,354)
Sanitary sewer utility 4,499,797 4,681,779 181,982 111,433
Storm drainage utility 2,437,706 1,820,889 (616,817) (749,163)
Street light utility 389,853 487,516 97,663 170,147
Recycling utility 403,057 393,347 (9,710) (1,907)
Total net (expense) revenue 57,554,852$ 33,786,830$ (23,768,022) (26,043,189)
General revenues
Property taxes 20,359,868 20,136,395
Tax increments 7,380,184 6,566,099
Lodging taxes 732,538 561,602
Grants and contributions not
restricted to specific programs 3,216,618 4,881,613
Unrestricted investment earnings (150,550) 1,452,728
Gain on disposal of capital assets 99,450 82,875
Total general revenues 31,638,108 33,681,312
Change in net position 7,870,086$ 7,638,123$
Net (expense) revenue
2021
One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the
way the City’s governmental and business-type operations are financed. The table clearly illustrates the
dependence of the City’s governmental operations on general revenues, such as property taxes and
unrestricted grants. It also shows if the City’s business-type activities are generating sufficient program
revenues (service charges and program-specific grants) to cover expenses. This is critical given the
current downward pressures on the general revenue sources.
-22-
LEGISLATIVE UPDATES
As the first year of the fiscal biennium, the primary focus of the 2021 Minnesota legislative session would
typically have been the development of the state’s fiscal year (FY) 2022–2023 biennial budget. Positive
news on the state’s budget forecast entering the session, with projections for the end of the FY 2020–2021
biennium improving from a $2.4 billion shortfall predicted in a May 2020 special pandemic budget
projection to a $940.0 million surplus predicted in the February 2021 budget and economic forecast, was
expected to ease the budget process and relieve the pressure to make budget cuts during an already
uncertain time. However, given the significant events of the preceding year, including the COVID -19
pandemic and death of George Floyd, the focus of the regular session shifted to legislation responding to
the pressing issues that resulted from those events. The business of setting a biennial budget was
ultimately not addressed until a June special session that ended in the early morning hours of July 1st.
The following is a brief summary of legislative changes from the 2021 session or previous legislative
sessions potentially impacting Minnesota cities.
American Rescue Plan (ARP) Act – The federal ARP Act, signed into law in March 2021, provided
federal economic recovery funding for federal, state, and local government responses to the
COVID-19 pandemic. Minnesota local governments received approximately $2.1 billion in funding under
the ARP Act, including $644.0 million awarded to 21 large cities (over 50,000 population) and
$377.0 million awarded to cities and towns with a population below 50,000, with half distributed in
FY 2021 and half in FY 2022. Local governments can use ARP Act funding in four broad
categories: responding to public health and economic impacts; providing premium pay to essential
workers; providing general government services to the extent of revenue loss; or investments in water,
sewer, and broadband infrastructure.
Potential State Aid Enhancements – The 2021 Legislature increased state general fund base spending
by approximately $1.3 billion. Included are funding increases for several programs potentially of benefit
to Minnesota cities, including:
• A one-time appropriation of $5.5 million for supplemental aid to cities for FY 2022, to offset
losses of local government aid (LGA) for 96 cities under the current formula. It is expected the
Legislature will review and consider updating the LGA formula during the 2022 session.
• Annual appropriations of $1.8 million for the Greater Minnesota Business Development Public
Infrastructure Grant Program, intended to bolster local economic growth by providing grant
assistance to cities for public infrastructure needed to create and retain jobs.
• Annual appropriations of $2.5 million for local community childcare grants, intended to assist
local communities to increase the number of childcare providers to support economic
development.
• Allocating a total of $70.0 million from the state’s ARP Act funds over the biennium
($35.0 million per year) to fund the Border-to-Border Broadband Grant Program, which provides
grants to local governments for enhancing broadband availability.
• Annual allocations of $4.5 million for reimbursements to local governments for firefighter
training and education costs.
• Annual allocations of $2.9 million for reimbursement to local governments for peace officer
training costs.
• A one-time appropriation of $18.0 million for FY 2022 to the small cities assistance account to
provide additional road repair funding for cities under 5,000 population.
Truth-in-Taxation Changes – Effective for property taxes payable in 2023 and thereafter, county
auditors will be required to prepare a new statement for inclusion in its parcel-specific truth-in-taxation
notices that contains summary budget information for the county, cities, and school districts for which
they spread and collect tax levies. Cities with a population greater than 500 will be required to compile
and provide current and proposed summary budget information to the county auditor, based on the
summary budget information cities are required to submit each year to the Minnesota state auditor.
-23-
Tax Base Change for Low-Income Rental Property – Effective for assessment years 2022 and 2023,
the first-tier limit for class 4d low-income rental property is reduced from $174,000 to $100,000, with
class rates remaining at 0.75 percent on the first $100,000 and 0.25 percent on the remaining balance. The
tier limit will once again be adjusted annually after assessment year 2023.
Local Sales Tax Projects Defined – Minnesota cities are authorized to include up to five capital projects
in proposals for local sales taxes. The definition of a capital project for this purpose was updated to
include: a single building or structure, including associated infrastructure; improvements within a
single park or recreation area, or; a contiguous trail.
Tax Increment Financing (TIF) Flexibility – The Legislature enacted several measures that provide
additional flexibility for TIF spending, including:
• Allowing unobligated TIF to be used to provide loans, interest rate subsidies, or other assistance
to private developers for the construction or substantial rehabilitation of buildings and ancillary
facilities, if doing so will create jobs. Transfer authority expires on December 31, 2022, and all
transferred increment must be spent by December 31, 2025, or returned to the TIF district.
• Allowing TIF districts that have elected to increase pooling by 10 percent to use the increment for
owner-occupied housing that meets the requirements of a housing TIF district, in addition to
current low-income rental housing.
• Providing three-year extensions of the five-year and six-year rules for redevelopment districts
created after December 31, 2017, but before June 30, 2020, thereby extending their duration.
• Creating a three-city pilot program, giving temporary authority to transfer unobligated housing
TIF district increment to the cities affordable housing trust funds.
Sales and Use Tax Refund Process – Effective for purchases made after June 30, 2021, cities and other
local governments are allowed to utilize a streamlined process to secure a sales tax refund on construction
materials purchased by a contractor on behalf of the city for construction, remodeling, expansion, or
improvement of public safety facilities owned by local governments, such as police and fire stations. The
process also applies to materials used in related facilities, such as access roads, lighting, sidewalks, and
utility components. Under the process, local governments would continue to initially pay sales tax on
these materials, but would then be allowed to file for a refund of the sales tax paid. Contractors would be
required to provide the local government with the information necessary to file for the refund.
Fire Protection Special Taxing District Authority – Effective for property tax levies payable in 2023
and thereafter, the current law giving emergency medical districts taxing authority is expanded to include
fire protection districts. Two or more local units of government are now permitted to establish a special
taxing district to provide fire protection, emergency medical services, or both. The special taxing district
will have authority to levy property taxes to finance district operations, spread either across the entire
district at a set rate, or allocated to each participating jurisdiction based on factors, such as population or
service calls. Districts will also have authority to issue debt related to the function of the district. The
property tax and debt issuance authority also apply to existing districts established prior to June 30, 2021.
Open Meeting Law – The Legislature made several pandemic-related changes to the Open Meeting Law,
including removing the statutory cap of three times per year for elected officials to utilize a medical
exception for attending meetings remotely between January 1, 2021, and July 1, 2021, and removing the
requirement for elected officials participating in public meetings remotely, due to military service or
medical exceptions, to disclose their remote locations. The law changes also updated the definition of
“interactive technology” to replace “interactive television” throughout the text of the Open Meeting Laws,
and added requirements for public bodies meeting remotely to enable remote participation by the public
free of charge and enable public comment from remote locations, when practical.
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ACCOUNTING AND AUDITING UPDATES
The following is a summary of Governmental Accounting Standards Board (GASB) standards expected
to be implemented in the next few years. Due to the COVID-19 pandemic, the GASB has delayed the
original implementation dates of these and other standards as described below.
GASB Statement No. 87, Leases
A lease is a contract that transfers control of the right to use another entity’s nonfinancial asset as
specified in the contract for a period of time in an exchange or exchange -like transaction. Examples of
nonfinancial assets include buildings, land, vehicles, and equipment. Any contract that meets this
definition should be accounted for under the leases guidance, unless specifically excluded in this
statement.
Governments enter into leases for many types of assets. Under the previous guidance, leases were
classified as either capital or operating depending on whether the lease met any of the four tests. In many
cases, the previous guidance resulted in reporting lease transactions differently than similar nonlease
financing transactions.
The goal of this statement is to better meet the information needs of users by improving accoun ting and
financial reporting for leases by governments. It establishes a single model for lease accounting based on
the principle that leases are financings of the right to use an underlying asset. This statement increases the
usefulness of financial statements by requiring recognition of certain lease assets and liabilities for leases
that previously were classified as operating leases and recognized as inflows of resources or outflows of
resources based on the payment provisions of the contract.
Under this statement, a lessee is required to recognize a lease liability and an intangible right to use lease
asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments’ leasing activities.
To reduce the cost of implementation, this statement includes an exception for short -term leases, defined
as a lease that, at the commencement of the lease term, has a maximum possible term under the lease
contract of 12 months (or less), including any options to extend, regardless of their probability of being
exercised. Lessees and lessors should recognize short-term lease payments as outflows of resources or
inflows of resources, respectively, based on the payment provisions of the lease contract. The
requirements of this statement are effective for reporting periods beginning after June 15, 2021.
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GASB Statement No. 91, Conduit Debt Obligations
The primary objectives of this statement are to provide a single method of reporting conduit debt
obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
statement achieves those objectives by clarifying the existing definition of a conduit debt obligation;
establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for
accounting and financial reporting of additional commitments and voluntary commitments extended by
issuers and arrangements associated with conduit debt obligations; and improving required note
disclosures.
A conduit debt obligation is defined as a debt instrument having all of the following characteristics:
• There are at least three parties involved: (1) an issuer, (2) a third party obligor, and (3) a debt
holder or a debt trustee.
• The issuer and the third party obligor are not within the same financial reporting entity.
• The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt
of the issuer.
• The third party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt
issuance.
• The third party obligor, not the issuer, is primarily obligated for the payment of all amounts
associated with the debt obligation (debt service payments).
This statement also addresses arrangements, often characterized as leases, that are associated with conduit
debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a
conduit debt obligation and used by third party obligors in the course of their activities.
This statement requires issuers to disclose general information about their conduit debt obligations ,
organized by type of commitment, including the aggregate outstanding principal amount of the issuers’
conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities
related to supporting the debt service of conduit debt obligations also should disclose information about
the amount recognized and how the liabilities changed during the reporting period.
The requirements of this statement are effective for reporting periods beginning after December 15, 2021.
Earlier application is encouraged.
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GASB Statement No. 92, Omnibus 2020
The objectives of this statement are to enhance comparability in accounting and financial reporting and to
improve the consistency of authoritative literature by addressing practice issues that have been identified
during implementation and application of certain GASB Statements. This statement addresses a variety of
topics and includes specific provisions about the following:
• The effective date of Statement No. 87, Leases, and Implementation Guide No. 2019-3, Leases,
for interim financial reports.
• Reporting of intra-entity transfers of assets between a primary government employer and a
component unit defined benefit pension plan or defined benefit other post-employment benefit
(OPEB) plan.
• The applicability of Statements No. 73, Accounting and Financial Reporting for Pensions and
Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain
Provisions of GASB Statements 67 and 68, as amended, and No. 74, Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans, as amended, to reporting assets
accumulated for post-employment benefits.
• The applicability of certain requirements of Statement No. 84, Fiduciary Activities, to
post-employment benefit arrangements.
• Measurement of liabilities (and assets, if any) related to asset retirement obligations in a
government acquisition.
• Reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess
insurers.
• Reference to nonrecurring fair value measurements of assets or liabilities in authoritative
literature.
• Terminology used to refer to derivative instruments.
The requirements of this statement are effective for fiscal years beginning after June 15, 2021. Earlier
application is encouraged.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements
This statement provides guidance on the accounting and financial reporting for subscription-based
information technology arrangements (SBITAs) for government end users (governments). This statement
(1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an
intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires
note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended.
An SBITA is defined as a contract that conveys control of the right to use another party’s (an SBITA
vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the
underlying IT assets), as specified in the contract for a period of time in an exchange or exchange -like
transaction. Under this statement, a government generally should recognize a right-to-use subscription
asset—an intangible asset—and a corresponding subscription liability.
This statement provides an exception for short-term SBITAs with a maximum possible term under the
SBITA contract of 12 months, including any options to extend, regardless of their probability of being
exercised. Subscription payments for short-term SBITAs should be recognized as outflows of resources.
This statement requires a government to disclose descriptive information about its SBITAs other than
short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other
payments not included in the measurement of a subscription liability, principal and interest requirements
for the subscription liability, and other essential information.
The requirements of this statement are effective for fiscal years beginning after June 15, 2022, and all
reporting periods thereafter.
-27-
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
Plans—an Amendment of GASB Statement No. 14 and No. 84, and a Supersession of GASB
Statement No. 32
The primary objectives of this statement are to (1) increase consistency and comparability related to the
reporting of fiduciary component units in circumstances in which a potential component unit does not
have a governing board and the primary government performs the duties that a governing board typically
would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension
plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB
plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements;
and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting
for Internal Revenue Code Section 457 deferred compensation plans (Section 457 plans) that meet the
definition of a pension plan and for benefits provided through those plans.
The requirements of this statement that (1) exempt primary governments that perform the duties that a
government board typically performs from treating the absence of a governing board the same as the
appointment of a voting majority of a governing board in determining whether they are financially
accountable for defined contribution pension plans, defined contribution OPEB plans, or other employee
benefit plans, and (2) limit the applicability of the financial burden criterion in paragraph 7 of
Statement 84 to defined benefit pension plans and defined benefit OPEB plans that are administered
through trusts that meet the criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74,
respectively, are effective immediately.
The requirements of this statement that are related to the accounting and financial reporting for
Section 457 plans are effective for fiscal years beginning after June 15, 2021. For purposes of determining
whether a primary government is financially accountable for a potential component unit, the requirements
of this statement that provide that for all other arrangements, the absence of a governing board be treated
the same as the appointment of a voting majority of a governing board if the primary governm ent
performs the duties that a governing board typically would perform, are effective for reporting periods
beginning after June 15, 2021. Earlier application of those requirements is encouraged and permitted by
requirement as specified within this statement.
GASB Statement No. 98, The Annual Comprehensive Financial Report
This statement establishes the term annual comprehensive financial report and its acronym ACFR. That
new term and acronym replace instances of comprehensive annual financial report and its acronym in
generally accepted accounting principles for state and local governments. This statement was developed
in response to concerns raised by stakeholders that the common pronunciation of the acronym for
comprehensive annual financial report sounds like a profoundly objectionable racial slur. This statement’s
introduction of the new term is founded on a commitment to promoting inclusiveness. The requirements
of this statement are effective for fiscal years ending after December 15, 2021. Earlier application is
encouraged.
CITY OF BROOKLYN CENTER
HENNEPIN COUNTY, MINNESOTA
Special Purpose Audit Reports on
Single Audit,
Internal Controls, and
Compliance With Laws and Regulations
Year Ended
December 31, 2021
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Page
Schedule of Expenditures of Federal Awards 1
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards 2–3
Independent Auditor’s Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on the Schedule of
Expenditures of Federal Awards Required by the Uniform Guidance 4–6
Independent Auditor’s Report on Minnesota Legal Compliance 7
Schedule of Findings and Questioned Costs 8–9
Table of Contents
CITY OF BROOKLYN CENTER
HENNEPIN COUNTY, MINNESOTA
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Pass-Through
Entity
Federal Identification Federal
ALN Number Expenditures
U.S. Department of Justice
Direct program
Bulletproof Vest Partnership Program 16.607 10,027$
Passed through Hennepin County
Edward Byrne Memorial Justice Assistance Grant Program 16.738 12,113
U.S. Department of Transportation
Passed through the State of Minnesota
Highway Planning and Construction 20.205 4,640,011
U.S. Department of Treasury
Direct program
COVID-19 – Coronavirus State and Local Fiscal Recovery Funds 21.027 93,000
Passed through the Minnesota Department of Employment and
Economic Development
COVID-19 – Coronavirus Relief Fund 21.019 SLT0016 300,000
Total federal awards 5,055,151$
Note 1:
Note 2:
Note 3:
Federal Grantor/Pass-Through Grantor/Program Title
The City did not elect to use the 10 percent de minimis indirect cost rate.
CITY OF BROOKLYN CENTER
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2021
The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting.The information
in this schedule is presented in accordance with the OMB’s Uniform Administrative Requirements,Cost
Principles,and Audit Requirements for Federal Awards.Therefore,some amounts presented in this schedule may
differ from the amounts presented in, or used in the preparation of, the City’s basic financial statements.
Unless noted in the table above,the pass-through entities use the same federal Assistance Listing Numbers (ALN)
as the federal grantors to identify these grants, and have not assigned any additional identifying numbers.
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council and Management
City of Brooklyn Center, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2021, and
the related notes to the financial statements, which collectively comprise the City ’s basic financial
statements, and have issued our report thereon dated May 31, 2022.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate
in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
(continued)
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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REPORT ON COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Minneapolis, Minnesota
May 31, 2022
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL
OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE
To the City Council and Management
City of Brooklyn Center, Minnesota
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
OPINION ON EACH MAJOR FEDERAL PROGRAM
We have audited the City of Brooklyn Center, Minnesota’s (the City) compliance with the types of
compliance requirements identified as subject to audit in the U.S. Office of Management and Budget
Compliance Supplement that could have a direct and material effect on each of the City’s major federal
programs for the year ended December 31, 2021. The City’s major federal programs are identified in the
Summary of Audit Results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major programs for the year ended
December 31, 2021.
BASIS FOR OPINION ON EACH MAJOR FEDERAL PROGRAM
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further
described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination of the City’s compliance requirements
referred to above.
(continued)
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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RESPONSIBILITIES OF MANAGEMENT FOR COMPLIANCE
Management is responsible for compliance with the requirements referred to on the previous page and for
the design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements
applicable to the City’s federal programs.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF COMPLIANCE
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance objectives referred to above occurred, whether due to fraud or error, and express an opinion
on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance , but is not
absolute assurance, and is, therefore, not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the City’s
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance , whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City’s compliance with the compliance requirements referred to
above and performing such other procedures as we consider necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
(continued)
-6-
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section on the previous page and was not designed
to identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that have
not been identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM
GUIDANCE
We have audited the financial statements of the City as of and for the year ended December 31, 2021, and
have issued our report thereon dated May 31, 2022, which contained unmodified opinions on those
financial statements. Our audit was conducted for the purpose of forming opinions on the financial
statements as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for
purposes of additional analysis as required by the Uniform Guidance and is not a required part of the
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the Schedule of
Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Minneapolis, Minnesota
May 31, 2022
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INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of Brooklyn Center, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2021, and
the related notes to the financial statements, which collectively comprise the City ’s basic financial
statements, and have issued our report thereon dated May 31, 2022.
MINNESOTA LEGAL COMPLIANCE
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to
comply with the provisions of the contracting – bid laws, depositories of public funds and public
investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous
provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for
Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to
accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may have come to
our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they
relate to accounting matters.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
Minneapolis, Minnesota
May 31, 2022
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs
Year Ended December 31, 2021
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A. SUMMARY OF AUDIT RESULTS
This summary is formatted to provide federal granting agencies and pass -through agencies answers to
specific questions regarding the audit of federal awards.
Financial Statements
What type of auditor’s report is issued?X Unmodified
Qualified
Adverse
Disclaimer
Internal control over financial reporting:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?Yes X None reported
Noncompliance material to the financial statements noted?Yes X No
Federal Awards
Internal controls over major federal award programs:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?Yes X None reported
Type of auditor’s report issued on compliance for major programs?X Unmodified
Qualified
Adverse
Disclaimer
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR 200.516(a)?Yes X No
Programs tested as major programs:
Federal
Program or Cluster ALN
U.S. Department of Transportation – Highway Planning and Construction 20.205
Threshold for distinguishing between type A and B programs:750,000$
Does the auditee qualify as a low-risk auditee?X Yes No
CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2021
-9-
B. FINANCIAL STATEMENT FINDINGS
None.
C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
D. MINNESOTA LEGAL COMPLIANCE FINDINGS
None.
Corrective Action Plans and
Summary Schedule of Prior Audit Findings
Year Ended December 31, 2021
A. FINANCIAL STATEMENT FINDINGS
None.
B. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
C. MINNESOTA LEGAL COMPLIANCE FINDINGS
None.
D. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
No audit findings were reported for the year ended December 31, 2020.
Annual Comprehensive Financial Report
For the year ended December 31, 2021
City of Brooklyn Center, Minnesota
Member of the Government Finance Officers Association of the United States
ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF THE
CITY OF BROOKLYN CENTER,
MINNESOTA
Dr. Reginald M. Edwards
City Manager
Prepared By:
FINANCE DIVISION
DEPARTMENT OF FISCAL & SUPPORT SERVICES
Andrew Splinter
Finance Director
Angela Holm
Deputy Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2021
Member of Government Finance Officers
Association of the United States and Canada
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CITY OF BROOKLYN CENTER, MINNESOTA
TABLE OF CONTENTS
Page No.
INTRODUCTORY SECTION
Letter of Transmittal 1
Principal Officials 9
Organizational Chart 10
Certificate of Achievement 11
FINANCIAL SECTION
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 29
Statement of Activities 30
Fund Financial Statements
Governmental Funds
Balance Sheet 32
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 35
Statement of Revenues, Expenditures and Changes in Fund Balances 36
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 38
Statement of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual
General Fund 39
Tax Increment District No. 3 Special Revenue Fund 40
Proprietary Funds
Statement of Net Position 42
Statement of Revenues, Expenses and Changes in Net Position 44
Statement of Cash Flows 46
Notes to the Financial Statements 49
Required Supplementary Information
Schedule of Changes in the City's Total OPEB Liability and Related Ratios 89
Schedule of City Contributions - Public Employees General Employees
Retirement Fund 90
Schedule of City's and Non-Employer Proportionate Share of Net Pension
Liability - Public Employees General Employees Retirement Fund 92
Schedule of City Contributions - Public Employees Police and Fire Fund 94
Schedule of City's and Non-Employer Proportionate Share of Net Pension Liability - Public
Employees Police and Fire Fund 96
Schedule of Changes in Net Pension Asset and Related Ratio - Fire Relief Association 98
Schedule of City Contributions - Fire Relief Association 99
Schedule of City Contributions - International Union of Operating Engineers
Central Pension Fund 100
Combining and Individual Fund Statements and Schedules
Governmental Funds
Nonmajor Governmental Funds
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Nonmajor Special Revenue Funds
Combining Balance Sheet 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 108
CITY OF BROOKLYN CENTER, MINNESOTA
TABLE OF CONTENTS
Nonmajor Capital Projects Funds
Combining Balance Sheet 110
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 111
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual
General Fund 112
Special Revenue Funds
Housing and Redevelopment Authority 117
Economic Development Authority 118
Community Development Block Grant 119
Police Forfeitures 120
Revolving Loan Fund 121
Centerbrook Golf Course 122
Tax Increment District No. 2 123
Tax Increment District No. 3 124
Tax Increment District No. 5 125
Tax Increment District No. 6 126
Tax Increment District No. 7 127
Tax Increment District No. 8 128
City Initiatives Grant 129
Debt Service Fund 130
Capital Projects Funds
Capital Improvements 131
Municipal State-Aid for Construction 132
Special Assessment Construction 133
Street Reconstruction 134
Capital Reserve Emergency 135
Technology 136
Debt Service Fund by Account
Combining Balance Sheet 138
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 140
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual
G.O. Improvement Bonds, 2013B 142
G.O. Improvement Bonds, 2015A 143
G.O. Improvement Bonds, 2016A 144
G.O. Improvement Bonds, 2017A 145
G.O. Improvement Bonds, 2018A 146
G.O. Improvement Bonds, 2019A 147
G.O. Improvement Bonds, 2020A 148
G.O. Improvement Bonds, 2021A 149
G.O. Tax Increment Bonds, 2016C 150
G.O. Tax Increment Bonds, 2016B 151
G.O. Tax Increment Refunding Bonds, 2015B 152
G.O. Tax Increment Bonds, 2013A 153
Proprietary Funds
Internal Service Funds
Combining Statement of Net Position 156
Combining Statement of Revenues, Expenses and Changes in Net Position 158
Combining Statement of Cash Flows 160
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component 164
Changes in Net Position 166
Governmental Activities Tax Revenue by Source 172
Fund Balances - Governmental Funds 174
Changes in Fund Balances - Governmental Funds 176
CITY OF BROOKLYN CENTER, MINNESOTA
TABLE OF CONTENTS
Revenue Capacity
Assessed Tax Capacity and Estimated Actual Value of Taxable Property 178
Property Tax Rates - Direct and Overlapping Governments 180
Principal Property Taxpayers 182
Property Tax Levies and Collections 183
Debt Capacity
Ratios of Outstanding Debt by Type 184
Ratios of General Bonded Debt Outstanding 185
Computation of Direct and Overlapping Governmental Activities Debt 186
Legal Debt Margin Information 188
Pledged Revenue Coverage 190
Demographic and Economic Information
Demographic and Economic Statistics 191
Principal Employers 192
Operating Information
Full-Time City Government Positions by Function 193
Operating Indicators by Function 194
Capital Asset Statistics by Function 195
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May 31, 2022
Honorable Mayor and Members of the City Council
City of Brooklyn Center
Transmitted herewith is the Annual Comprehensive Financial Report of the City of Brooklyn Center
for the fiscal year ended December 31, 2021.
Management of the City of Brooklyn Center assumes full responsibility for the completeness and
reliability of the information contained in this report based on the current system of internal control.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
Minnesota Statutes and City Charter Section 7.12 require that the financial statements of the City of
Brooklyn Center be audited annually by the State Auditor or a certified public accountant selected by
the City Council. These financial statements have been audited by Malloy, Montague, Karnowski,
Radosevich, & Co., P.A. (MMKR). Their opinion is included in the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s
report and provides a narrative introduction, overview, and analysis of the basic financial statements.
Management’s Discussion and Analysis complements this letter of transmittal and should be read in
conjunction with it.
Profile of the City of Brooklyn Center
The City of Brooklyn Center was incorporated in 1911. It is a northern suburb of the Twin Cities
metropolitan area, adjacent to the City of Minneapolis and located 10 miles from its downtown area.
The City is wholly within Hennepin County and covers an area of about 8.5 square miles. The
Mississippi River forms the City’s eastern boundary.
The City has operated under the council-manager form of government since the adoption of the
City Charter in 1966. The governing body is comprised of the Mayor and four Council Members
elected at large. All members serve four-year terms with two of the Council Members standing
for election during each national election year cycle. The Mayor and Council Members hire a City
Manager who is responsible for the daily operations of the City.
The City provides a full range of municipal services to its citizens. These include police and fire
protection and services, zoning and code enforcement, municipal planning, parks, recreation
activities, construction and maintenance of streets, provision of water, wastewater collection and
treatment, stormwater collection and treatment, and street lighting. Community and economic
1
development are facilitated through a Housing and Redevelopment Authority and an Economic
Development Authority (EDA). The Boards of those two organizations are comprised of the
Mayor and members of the City Council. The City also has internal departments providing human
resources, engineering, financial management and information technology support to these various
functions. The City operates a conference and meeting facility at the Earle Brown Heritage Center,
two municipal liquor stores, and Centerbrook, an executive nine-hole golf course.
Financial planning and control for the City of Brooklyn Center is based on the Annual Operating
Budget and the multi-year Capital Improvement Program. Under Minnesota Statutes, a
preliminary property tax levy must be adopted no later than September 30 of each year for the
ensuing year’s collection. This establishes a maximum levy that may subsequently be lowered but
not raised. Effective establishment of this levy requires that a preliminary budget be prepared.
The City Manager, with the assistance of staff, prepares such a budget each year and presents it to
the City Council in August, prior to the consideration of the preliminary tax levy. In addition, the
City Council reviews the recommended rates and charges for utility funds and other operations on
an annual basis as part of the budget process. Citizens receive a notice of taxes proposed for their
individual properties in November based on the preliminary levies established by all taxing
districts. Following the receipt of this notice citizens are invited to public meetings in each taxing
jurisdiction. The City’s meeting includes information about the budget, the property tax levy and
the priorities of the City Council for the coming year as reflected by the budget allocations
proposed. Public comment is received and considered at this meeting. The final property tax levy
and the resulting operational budgets for the ensuing fiscal year are adopted at a subsequent
meeting.
In addition, a Capital Improvement Program is reviewed and revised during the budget process
each year. This includes projects for which the City may issue debt and/or assess portions of the
cost to adjacent or benefited property owners. Because there are limited funds available each year
and the City does not wish to issue excessive amounts of debt, these projects are reviewed and
reprioritized each year.
The City Council remains focused on the achievement of strategic priorities. City financial
planning, policies, spending and initiatives reflect these priorities. The City Council adopted six
strategic priorities as follows:
Resident Economic Stability
The economic stability of residents is essential to vibrant neighborhoods and to retail, restaurant,
and business growth. We will lead by supporting collaborative efforts of education, business, and
government sectors to improve income opportunities for residents.
Targeted Redevelopment
Redeveloping properties to the highest value and best use will accomplish our goals regarding
housing, job creation, and growth of the City’s tax base. We will appropriately prepare sites and
provide the necessary supporting infrastructure investments to guide redevelopment of publicly-
and privately-owned properties.
2
Enhanced Community Image
Our ability to attract and retain residents and businesses is influenced by the perception of the
City. We will take specific actions to assure that Brooklyn Center is recognized by residents,
businesses, stakeholders, and visitors as a high quality, attractive, and safe community.
Inclusive Community Engagement
In order to provide effective and appropriate services, we must clearly understand and respond to
community needs. We will consistently seek input from a broad range of stakeholders from the
general public, non-profit, and for-profit sectors. Efforts to engage the community will be
transparent, responsive, deliberately inclusive, and culturally sensitive.
Safe, Secure, and Stable Community
For residents and visitors to fully appreciate and enjoy a great quality of life, it is essential that all
neighborhoods are safe, secure, and stable. We are committed to assuring compliance with
neighborhood conditions and building safety standards, providing proactive and responsive public
safety protection, wise stewardship of City resources and policies that promote safety, security,
and a lasting stable environment.
Key Transportation Investments
Proactively maintaining an efficient and effective infrastructure will meet the high level of
community expectations. We will plan for and invest in critical infrastructure improvements that
enhance safety, improve life quality, and support opportunities for redevelopment, while
sustaining the natural environment.
Local Economy
Brooklyn Center is a mature, fully developed first ring suburb of Minneapolis. With its affordable
housing, excellent schools, beautiful parks, and convenient transportation access it has the
attributes to continue as a vibrant community for many years to come.
The City experienced its most rapid growth from 1950 to 1970 when the City’s population grew
from 4,300 to its peak of 35,173. The 2020 population estimated from the Metropolitan Council
estimates the population for Brooklyn Center at 33,782. The number of housing units has
increased from 10,812 in 2012 to an estimated 11,309.
The City’s taxable market value is $2,617,375,993 for taxes payable 2022, which is an increase of
$149,149,538 or 6.04 percent from last year. The taxable market value increase is driven by large
increases in residential (8.59%), and apartment properties (11.51%). The net tax capacity of the
City is estimated at $36,690,434 compared to $30,738,953 for taxes payable 2021, which was an
increase of $5,951,481 (19.36%). Residential housing makes up 52.0% of the 2022 tax capacity
base. According to the Hennepin County Assessor’s Office, for the valuation used to calculate the
2022 property tax payments, the median value home in Brooklyn Center is $223,000 compared to
$207,000 in the previous valuation.
Major transportation routes in and through the City, including Interstates 94 and 694, and State
Highways 100 and 252, have provided a continued impetus for development of a strong
commercial tax base in the City along these corridors.
3
There are no large, undeveloped tracts of land in Brooklyn Center and no potential for annexation
of additional undeveloped land. Therefore, the revitalization of Brooklyn Center is proceeding on
three tracks: redevelopment and renewal of the commercial and industrial areas of the City;
reconstruction and enhancement of its streets, utilities, and parks; and the revitalization of
neighborhoods.
The hospitality industry contributes a significant amount to Brooklyn Center’s economy. Lodging
tax receipts for fiscal year 2020 totaled $561,602, which was lower than normal due to the impact
of COVID 19 on the lodging industry. In 2021 the partial recovery of that industry caused that
number to increase to $732,538.
City issued building permits in 2021 had a total permit value of $42,994,387, showing a continued
trend of significant investments being made in the community.
Long Term Financial Planning
The City maintains a comprehensive Capital Improvement Plan to facilitate the replacement of its
aging infrastructure. When streets are reconstructed in this program, aging water, sanitary and
storm sewer infrastructure is also repaired or replaced. These improvements are funded by a
combination of general obligation improvement bonds supported with special assessments against
benefited properties and cash from the capital projects funds and utility enterprise funds. About
one twenty-fifth of the City’s streets and utilities are reconstructed each year. It is expected that
this will be an ongoing process and the Plan is reviewed and amended as a part of each budget
cycle. In addition, cash flows for all funds providing financing for the Plan are updated for cash
flow projections during the 15 year timeframe of the Plan. The Capital Improvements Plan projects
completion of the first citywide round of reconstruction of the streets and utilities throughout the
entire community by 2022. An additional benefit of these neighborhood projects has been the
increased investment by residents in their properties following reconstruction projects.
The development of utility rate models and of non-utility cash flow projection models has
improved the City’s ability to plan and generate cash for operations, scheduled maintenance and
capital improvements. A plan for the maintenance and upgrading of the City’s buildings and
facilities is being incorporated into spending plans for both operational repairs and for large capital
expenditure type improvements.
Major Initiatives
Successful redevelopment continues to be the key to commercial and industrial tax base growth
including:
The 80-acre Opportunity Site, which is planned for a mix of commercial and residential
redevelopment, along with regional recreational and entertainment amenities.
4
Since 2008, the EDA has acquired 44 acres of land within the Opportunity Site. This
includes the former Brookdale Square shopping center site, former Brookdale Ford
dealership property, and former Target store.
In 2016, the City Council approved the creation of a 25 year tax increment redevelopment
district and completed the soil corrections and final demolition of the former Brookdale
Ford building, floor lifts, and underground LP tank.
The EDA entered into a Preliminary Development Agreement (PDA) with Alatus, LLC, a
Minneapolis-based developer, in April 2018 for the southern 35 acres of the Opportunity
Site. The PDA identified Alatus as the master developer to plan the site and initiate a Phase
I development.
In May 2018, the census tract (27053020200) that the Opportunity Site is located within
was designated as an Opportunity Zone.
City EDA renewed its PDA with Alatus in April of 2019, taking the lead on the master
planning for the entire 80-acre Opportunity Site in collaboration with Alatus. The timing
was structured to allow Alatus to move forward with Phase I in conjunction with the
creation of a master plan.
The initiatives for 2022-2023 include:
o Completing the Opportunity Site Master Plan
o Complete community engagement process and deliver a community-based term
sheet of community benefits to be included with private development
o Completing an Opportunity Site regulatory framework to implement the Master
Plan
o Completing a housing policy plan to implement the housing goals within the
Master Plan
o Amending Tax Increment Financing District 7 to encompass the entire
Opportunity Site area
o Initiating a development within the Opportunity Site area
o Implementing a public market/business incubator within the Opportunity Site area
Additional development activities in 2022/2023 include:
Redevelopment of EDA-owned Properties
The desired outcome is to identify property to acquire and dispose of in order to facilitate
development that forwards the City’s strategic priorities.
The initiatives for 2022-2023 include:
o Identifying EDA-owned properties to strategically position for resale
o Market EDA-owned properties to attract development opportunity that forwards
the City’s strategic priorities.
o Respond to the market as needed to respond to interest in EDA-owned properties.
o Develop tools to reduce barriers for developers and investors to access EDA-
owned property and repurpose it.
5
Former Sear’s Site
The desired outcome is an inviting, attractive, and vibrant development that forwards the
City’s Strategic Priorities.
The initiatives include:
o Understand the market opportunities and constraints of the site.
o Work with the property owner to identify a use for the site that aligns with the
City’s desired outcomes.
In conjunction with the Brooklyn Boulevard reconstruction the City is undertaking a land
use study along the corridor and the creation of an overlay district with regulatory
framework intended to facilitate redevelopment. The study will include the numerous
EDA-owned properties along the corridor and identify a plan for their reuse.
The City is in the process of rewriting of its zoning ordinances. This will include the
creation of several new mixed-use zoning districts to implement the recent 2040
Comprehensive Plan. The mixed-use zoning districts will introduce higher density
housing to currently underdeveloped areas of the City where housing has historically not
been allowed, such as the Opportunity Site, along Brooklyn Boulevard, and in other key
redevelopment sites in the City.
Relevant Financial Policies
The City of Brooklyn Center includes in its Financial Policies a requirement that the General Fund
balance at year end must be between 50.0% and 52.0% of the ensuing year’s General Fund
operating budget. This provides both for cash flow needs and emergency expenditures in the short
term.
The City’s Capital Project Funding Policy provides recurring sources of funding for the City’s 15-
year Capital Improvement Plan. The Policy specifically identifies three main funding sources as
follows:
1. Audited year-end General Fund unassigned fund balance above 52% of the next year’s
General Fund operating budget
2. Audited year-end Liquor Fund unrestricted cash balance that exceeds two months of the
next year’s operating budget and one year of budgeted capital equipment needs.
3. Local Governmental Aid (LGA) received in the amount of $650,000 or half of the amount
received by the City (whichever is greater).
Also included in the Financial Policies are internal control directives to protect the City’s assets
from loss, theft or misuse. These controls provide reasonable assurance of the safety of the City’s
assets while recognizing that management estimates and judgments as to the cost of such controls
are also important to deriving maximum benefit from these controls.
6
Awards and Acknowledgements
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 Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31,
2020. The City was first awarded this certificate in 1966. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized ACFR. The
ACFR must satisfy both accounting principles generally accepted in the United States and
applicable federal, state and local legal requirements.
A Certificate of Achievement is valid for a period of one year. It is expected that the 2021 report
conforms to Certificate of Achievement Program requirements. It will be submitted to the GFOA
to determine its eligibility for another certificate.
The preparation and publication of this report would not have been possible without the dedicated
and efficient work of the Finance staff. We would like to acknowledge all staff that contributed
their efforts to the Finance operations in 2021. We would also like to thank the Mayor and City
Council for their support in promoting and maintaining the highest standards of professionalism
and management of the City of Brooklyn Center.
Respectfully Submitted,
Dr. Reginald M. Edwards Andrew Splinter
City Manager Finance Director
7
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8
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2021
Name Position Term of Office Term Expires
ELECTED OFFICIALS
Mike Elliott Mayor Four Years December 31, 2022
April Graves Council Member Four Years December 31, 2022
Kris Lawrence-Anderson Council Member Four Years December 31, 2024
Dan Ryan Council Member Four Years December 31, 2022
Marquita Butler Council Member Four Years December 31, 2024
APPOINTED OFFICIALS
Dr. Reginald Edwards City Manager Appointed
Troy Gilchrist City Attorney Contractual Appointee
Barb Suciu City Clerk Appointed
Tony Gruenig Acting Police Chief Appointed
Meg Beekman Community Development Director Appointed
Todd Berg Fire Chief Appointed
Cordell Wiseman Recreation Services Director Appointed
Michael Marsh Acting Director of Public Works Appointed
Andrew Splinter Finance Director Appointed
9
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10
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Brooklyn Center
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2020
Executive Director/CEO
11
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12
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Brooklyn Center, Minnesota
OPINIONS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Brooklyn Center,
Minnesota (the City) as of and for the year ended December 31, 2021, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of December 31, 2021, and the respective
changes in financial position, and, where applicable, cash flows thereof, and the budgetary comparison for
the General Fund and budgeted major special revenue funds for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
BASIS FOR OPINIONS
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibil ities in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern within 12 months beyond the financial statements date, including any currently known
information that may raise substantial doubt shortly thereafter.
(continued)
C E R T I F I E D
A C C O U N T A N T S
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
Kalen T. Karnowski, CPA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance
and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgement made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the responsibility
of management and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the RSI in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
(continued)
14
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining and individual fund financial statements
and schedules, as listed in the table of contents, are presented for purpose of additional analysis and are
not a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prep are
the basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. Th e other information
comprises the introductory and statistical sections, but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2022,
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City’s internal control over financial reporting or on compliance. That report is an int egral part of
an audit performed in accordance with Government Auditing Standards in considering the City’s internal
control over financial reporting and compliance.
Minneapolis, Minnesota
May 31, 2022
15
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16
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
As management of the City of Brooklyn Center (the City), we offer readers of the City's Annual Comprehensive Financial Report (ACFR),
this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2021. We encourage readers
to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which
can be found on pages 1-7 of this ACFR.
Financial Highlights
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the
most recent fiscal year by $168,420,915 (net position). Of this amount, $24,027,684 (unrestricted net position) may be used to meet the
City's ongoing obligations to citizens and creditors.
• The City’s total net position increased by $7,870,086 (4.90%) from the previous year. The increase can be primarily attributed to a
significant amount of Tax increment revenues in excess of Economic Development expenses and decreases in net pension
liabilities.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $59,998,038,
which is an increase of $2,862,380 (5.01%) from the previous year. Of the total fund balance, $12,877,456 (21.46%) is unassigned,
which is free from any internal or external constraints of its use.
• The General fund has a fund balance of $13,159,839 at the close of the current fiscal year. During 2021, the fund balance decreased
$1,045,729 (7.36%) from the previous year. The unassigned fund balance at year end is $13,090,687, which represents 50.92% of the
following year's budgeted expenditures. The remaining portion of the fund balance is nonspendable.
• The City’s total outstanding bonded debt increased by $818,000 during the current fiscal year, from $61,371,445 to $62,189,445. The
City retired $7,192,000 in principal in 2021, and issued $8,010,000 in new debt for infrastructure projects that included the
Grandview South Area Infrastructure Improvement Project and Storm Water portions of Brooklyn Boulevard Phase 2.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City's basic financial
statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This ACFR also contains other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad
overview of the City's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows
of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes
in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused vacation leave).
17
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of the City include: general government, public
safety, public works, community services, parks & recreation, economic development, and interest on long-term debt. The business- type
activities of the City include: municipal liquor, Earle Brown Heritage Center, water utility, sanitary sewer utility, storm drainage utility,
street light utility, and the recycling utility.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate
Housing and Redevelopment Authority and Economic Development Authority, for which the City is financially accountable. Although legally
separate, these component units, function for all practical purposes as a department of the City, and therefore have been included as an
integral part of the primary government.
The government-wide financial statements can be found on pages 29 through 31 of this ACFR.
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities
in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the
end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the
information presented for governmental funds with similar information presented for governmental activities in the government-wide financial
statements. By doing so, readers may better understand the long-term impact of the City's near-term financial decisions. Both the
governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a
reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains 21 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for the following: General, Tax Increment District No.
3, Debt Service, Capital Improvements, Municipal State Aid for Construction, Special Assessment Construction, and Street Reconstruction
Funds which are considered to be major funds. Data from the other 14 governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements or
schedules, elsewhere in this ACFR.
The City adopts an annual appropriated budget for nearly all funds presented in this ACFR. A budgetary comparison statement has been
provided in the basic financial statements for the General fund and the Tax Increment District No. 3 fund. The budgetary comparison
statements for any nonmajor funds are provided elsewhere in this ACFR.
The basic governmental fund financial statements can be found on pages 32 through 40 of this ACFR.
18
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Proprietary Funds: Proprietary funds provide similar information to the government-wide financial statements, but in more detail.
The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The
City uses enterprise funds to account for its: municipal liquor, Earle Brown Heritage Center, water utility, sanitary sewer utility, storm
drainage utility, street light utility, and recycling utility. All of the City's enterprise funds are considered to be major funds, and separate
information is provided for each of them in the basic financial statements.
Internal service funds are an accounting device to accumulate and allocate costs internally among the City's various functions. The City uses
internal service funds to account for its: central garage, employee retirement benefits, pension - coordinated, pension - police and fire, and
compensated absences accumulations. All internal service funds are combined into a single, aggregated presentation in the proprietary fund
financial statements. Individual data for the internal service funds is provided in the form of combining statements elsewhere in this ACFR.
Because all of these services predominately benefit governmental rather than business-type functions, they have been included as
governmental activities in the government-wide financial statements.
The basic proprietary fund financial statements can be found on pages 42 through 47 of this ACFR.
Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found on pages 49 through 87 of this ACFR.
Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required
supplementary information, for other post-employment benefits (OPEB) and defined benefit pension plans. The schedule of changes in the
City's total OPEB liability and related ratios, City contributions, City's and non-employer proportionate share of net pension liability, and
schedule of changes in Net Pension Asset and related ratio can be found on pages 89 through 100 of this ACFR. The combining and
budgetary comparison statements referred to earlier in connection with nonmajor governmental funds and internal service funds are presented
immediately following the required supplementary information. Combining and budgetary comparison statements can be found on pages 104
through 161 of this ACFR.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets
and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $168,420,915 at the close of the most recent
fiscal year.
The largest portion of the City's net position ($101,864,747 or 60.48%) reflects its investment in capital assets, which includes: land
infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding. The City uses
these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's
investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
19
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
2021 2020 2021 2020 2021 2020
Current and other assets 85,487,799$ 77,873,628$ 17,243,510$ 18,326,844$ 102,731,309$ 96,200,472$
Capital assets 76,577,405 72,579,894 84,347,583 81,248,474 160,924,988 153,828,368
Total assets 162,065,204 150,453,522 101,591,093 99,575,318 263,656,297 250,028,840
Deferred outflows of resources 10,414,884 4,617,608 - - 10,414,884 4,617,608
Long-term liabilities outstanding 31,847,791 38,175,263 38,522,739 36,416,500 70,370,530 74,591,763
Other liabilities 11,857,751 6,776,783 5,398,981 4,888,553 17,256,732 11,665,336
Total liabilities 43,705,542 44,952,046 43,921,720 41,305,053 87,627,262 86,257,099
Deferred inflows of resources 18,023,004 7,838,520 - - 18,023,004 7,838,520
Net investment in capital assets 57,524,408 54,471,240 44,340,339 43,786,262 101,864,747 98,257,502
Restricted 42,528,484 38,473,882 - - 42,528,484 38,473,882
Unrestricted 10,698,650 9,335,442 13,329,034 14,484,003 24,027,684 23,819,445
Total Net Position 110,751,542$ 102,280,564$ 57,669,373$ 58,270,265$ 168,420,915$ 160,550,829$
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government
as a whole, as well as for its separate governmental and business-type activities.
A portion of the City’s net position (25.25%) represents resources that are subject to external restrictions on how they may be used. The
remaining portion (14.27%) may be used to meet the City's ongoing obligations.
Current and other assets increased by over $6.5 million during 2021. This relates to funding received in advance for construction of Brooklyn
Boulevard Phase 2, unspent bond proceeds, and funding received under the American Rescue Plan Act that will be spent in a future year.
Capital assets increased by $7,096,620 during the fiscal year due to contruction of Interstate Area, Grandview North and South Area Infrastructure
improvement projects, the City portion of Brooklyn Boulevard Phase I and II, and vehicle acquisitions in the Central Garage.
Other liabilities increased by $5,591,396 due to significant amounts of uneared revenue in the General Fund due to ARPA received ahead of
expenditures, and project reimbursements on Brooklyn Boulevard Phase II ahead of related expenditures in the Capital Improvement Fund.
The governmental activities had a significant increase in the amount of deferred outflows and inflows of resources. The change is primarily a result
of GASB Statement No. 68 in which the City is required to report its proportionate share of the Minnesota Public Employees Retirement Association
(PERA) net pension liabilities and deferred outflows and inflows of resources. Recording these items does not change the City's future contribution
requirements or obligations under the plans, which are determined by Minnesota statutes.
CITY OF BROOKLYN CENTER - SUMMARY OF NET POSITION
Governmental Activities Business-Type Activities Total
20
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Governmental Activities
Governmental activities resulted in an increase of the City's net position by $8,470,978 (8.28%). Key elements of the changes are as
follows:
Revenues:2021 2020 2021 2020 2021 2020
Program revenues
Charges for services 1,648,798$ 1,946,890$ 19,362,165$ 18,300,223$ 21,010,963$ 20,247,113$
Operating grants and contributions 8,572,992 2,607,134 - - 8,572,992 2,607,134
Capital grants and contributions 4,152,875 3,148,955 50,000 - 4,202,875 3,148,955
General revenues
Property taxes 20,359,868 20,136,395 - - 20,359,868 20,136,395
Other taxes 8,112,722 7,127,701 - - 8,112,722 7,127,701
Grants and contributions not
restricted to specific programs 2,916,618 4,432,381 300,000 449,232 3,216,618 4,881,613
Unrestricted investment earnings (100,702) 971,753 (49,848) 480,975 (150,550) 1,452,728
Gain on disposal of capital assets 99,450 82,875 - - 99,450 82,875
Total revenues 45,762,621 40,454,084 19,662,317 19,230,430 65,424,938 59,684,514
Expenses:
General government 4,954,933 4,834,450 - - 4,954,933 4,834,450
Public safety 12,251,370 13,057,043 - - 12,251,370 13,057,043
Public works 12,756,066 6,450,769 - - 12,756,066 6,450,769
Community services 210,488 171,344 - - 210,488 171,344
Parks and recreation 3,859,928 3,218,266 - - 3,859,928 3,218,266
Economic development 2,192,700 2,872,886 - - 2,192,700 2,872,886
Interest on long-term debt 565,379 634,139 - - 565,379 634,139
Municipal liquor - - 5,911,141 5,699,529 5,911,141 5,699,529
Earle Brown Heritage Center - - 2,670,277 3,034,695 2,670,277 3,034,695
Water utility - - 4,452,157 4,377,809 4,452,157 4,377,809
Sanitary sewer utility - - 4,499,797 4,551,331 4,499,797 4,551,331
Storm drainage utility - - 2,437,706 2,441,109 2,437,706 2,441,109
Street light utility - - 389,853 306,619 389,853 306,619
Recycling utility - - 403,057 396,402 403,057 396,402
Total expenses 36,790,864 31,238,897 20,763,988 20,807,494 57,554,852 52,046,391
Change in net position
before transfers 8,971,757 9,215,187 (1,101,671) (1,577,064) 7,870,086 7,638,123
Transfers - capital assets (500,779) (391,952) 500,779 391,952 - -
Change in net position 8,470,978 8,823,235 (600,892) (1,185,112) 7,870,086 7,638,123
Net Position - January 1 102,280,564 93,457,329 58,270,265 59,455,377 160,550,829 152,912,706
Net Position - December 31 110,751,542$ 102,280,564$ 57,669,373$ 58,270,265$ 168,420,915$ 160,550,829$
CITY OF BROOKLYN CENTER - CHANGES IN NET POSITION
Governmental Activities Business-Type Activities Total
21
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Governmental activities accounted for (107.64%) of the increase in the City's net position. The change in net position from the previous year
can be attributed to prepaid special assessments, tax increment revenues received in Tax Increment District #3, and municipal state aid and
other intergovernmental revenues earned related to capital spending.
Charges for services in Business-type activities increased significantly from the prior year due to increased revenue in the Municipal Liquor
fund as they were closed for a portion of 2020. Revenues for Public Utilities also rose due to rate increases.
Operating grants and Public Works expenses were much higher than the prior year due to the outside funding the City received and expensed
for the Brooklyn Boulevard Phase 2 project that was largely County owned property.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Charges for services
3.6%
Operating grants
18.7%
Capital grants
9.1%
Property taxes
44.5%
Other taxes
17.7%
Other general revenues
6.6%Investment earnings
-0.2%
Revenues by Source
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
General
government
Public safety Public works Community
services
Parks and
recreation
Economic
development
Interest on
long-term debt
Function Expenses vs. Program Revenues
Expense Program Revenue
22
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Business-type Activities
Business-type activities decreased net position by $600,892, which accounts for (-7.64%) of the total growth in the City's net position. The
factors contributing to this change are illustrated below:
The net position of the business-type activities increased for the Water, Sanitary Sewer, and Street Light Utilities. Net position of the
Municpal Liquor, Earle Brown Heritage Center, Storm Drainage Utility, and Recycling Utility decreased during 2021.
Municipal liquor
28.5%
Earle Brown Heritage Center
12.9%
Water utility
21.4%
Sanitary sewer utility
21.7%
Storm drainage utility
11.7%Street Light Utility
1.9%Recycling utility
1.9%
Business-type Activities - Function Expenses
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Municipal
liquor
Earle Brown
Heritage Center
Water utility Sanitary sewer
utility
Storm drainage
utility
Street light
utility
Recycling
utility
Function Expenses vs. Program Revenues
Expense Program Revenue
23
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Financial Analysis of the Government's Funds
Governmental Funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund
balance may serve as useful measure of a government's net resources available at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $59,998,038, which is an
increase of $2,862,380 (5.01%) from the previous year. The unassigned fund balance, which is not subject to internal or external constraints
upon its use, is $12,877,456, or 21.46% of total fund balance. A small portion of the fund balance, $73,526 (0.12%) is in nonspendable form.
The remaining fund balance has either internal or external constraints upon its use, and can be broken down into the following components:
$37,577,517 (62.63%) of restricted fund balance; $9,002,823 (15.01%) of committed fund balance; and $466,716 (0.78%) of assigned fund
balance. A more detailed breakdown of fund balance components can be found in the basic financial statements.
The General fund is the primary operating fund of the City. At the end of the current fiscal year, total fund balance is $13,159,839. As a
measure of the General fund's liquidity, it may be useful to compare both unassigned and total fund balance, to total fund expenditures.
Unassigned balance, which is $13,090,687, represents 54.85% of the current year General fund expenditures. Total General fund balance
represents 55.14% of those same expenditures.
The fund balance of the City’s General fund decreased by $1,045,729 (7.36%) from the previous year. The City had budgeted for a reduction in fund
balance of $396,637 in 2021 after a large increase in 2020. There was a negative variance in revenues and transfers in of $322,826, and
expenditures and transfers out of $326,266. The revenue variance was driven by licenses and permits and charges for services being under budget
The largest expenditure variances were in Nondepartmental and Economic Development expenditures, the Nondepartmental variance was driven by
expenditures responding to civil unrest following the death of Daunte Wright and the Economic Development variance was driven by remittances to
the North Metro Tourism board as lodging tax collections for 2021 exceeded the budgeted amount.
The Tax Increment District No. 3 fund has a total fund balance of $26,214,918 at the end of the year. The increase in fund balance was
$3,157,772 (13.70%) from the previous year. The fund received $6,205,922 in tax increment revenues, expended $891,138 on economic
development and transferred $2,243,137 for debt service. As of December 31, 2021 the fund has total assets held for resale of $17,974,292,
the largest contributor to the increase from prior year was tax increment revenue in excess of budget.
The Debt Service fund has a total fund balance of $4,809,151 at the end of the year. The increase in fund balance was $410,469 (9.33%)
from the previous year. The increase in fund balance is primarily the result of prepaid special assessments.
The Capital Improvements fund has a total fund balance of $2,578,668, an increase of $1,805,461 (233.50%) from the previous year. The
increase was the result of local government aid and grant funding of prior year costs of the Brooklyn Boulevard Phase 2 improvement project.
The Municipal State Aid Construction fund has a fund balance of $1,956,119 at the end of the year. The decrease in fund balance was
$716,265 (-26.80%) from the previous year due to spending on Municipal State Aid eligible construction projects in excess of the State's
allocation for 2021. As of December 31, 2021 the fund had a cash balance of $1,956,116 and a receivable balance in the amount of
$4,333,254 in Municipal State Aid Construction funds.
The Special Assessments Construction fund has an ending fund balance of $466,716 a decrease of $1,013,417 from the previous year. Bond
proceeds were received in the amount of $1,320,192 to help fund $2,802,631 of capital expenditures during the year, primarily for Grandview
South Area neighborhood infrastructure reconstruction project.
The Street Reconstruction fund has an ending fund balance of $5,054,565, a decrease of $75,209 from the prior year. Bond proceeds were
received in the amount of $2,031,065 to help fund capital expenditures of $2,807,050 during the year, primarily for Grandview South Area
neighborhood infrastructure reconstruction project.
Proprietary Funds: The City's proprietary funds provide the same type of information presented as business-type activities found in the
government-wide financial statements, but in more detail.
24
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
The enterprise funds have a combined ending net position of $60,231,560, of which $15,891,221 (26.38%) is unrestricted and can be used for
operations. As a measure of the liquidity of the enterprise funds, it may be useful to compare the unrestricted net position to the operating
expenses. For the current year, unrestricted net position is 104.59% of the current year operating expenses. Other factors concerning the
finances of these funds have already been addressed in the discussion of the City's business-type activities.
General Fund Budgetary Highlights
During the year, there were no amendments to the General Fund budget. The City had budgeted for a reduction in fund balance of $396,637 in 2021
after a large increse in 2020. There was a negative variance in revenues and transfers in of $322,826, and expenditures and transfers out of
$326,266. The revenue variance was driven by licenses and permits and charges for services being under budget. The largest expenditure variances
were in Nondepartmental and Economic Development expenditures, the Nondepartmental variance was driven by expenditures responding to civil
unrest following the death of Daunte Wright and the Economic Development variance was driven by remittances to the North Metro Tourism board
as lodging tax collections for 2021 exceeded the budgeted amount.
Capital Asset and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business-type activities at the end of the current year, amounts
to $160,924,988 (net of accumulated depreciation). This investment in capital assets includes: land, easements, land improvements, street light
systems, buildings, infrastructure, machinery and equipment, and construction in progress. The City's investment in capital assets increased
$7,096,620 (4.61%) from the previous year.
Major capital asset events during the current year included the following:
• The Interstate Area neighborhood infrastructure reconstruction project was completed, with a total cost of $10,068,415 including
construction in progress from the previous year. This amount includes work on streets, as well as water, sewer, storm and street light
utilities.
• The Grandview North Area Infrastructure project was substantially completed, with a total cost of $5,383,301 (including previous
years). This amount includes work on streets, water, sewer, storm, and street light utilities.
• The Grandview South Area Infrastructure project was substantially completed, with a total cost of $8,180,169. This amount includes
work on streets, water, sewer, storm, and street light utilities.
• The Brooklyn Boulevard street reconstruction project Phase 1 completed construction, with a total of $17,541,280 in costs (including
previous years). This amount includes work on streets, as well as water, sewer, storm and street light utilities. Federal funding through
the Surface Transportation Program has been awarded to the City and Hennepin County for this project. Approximatley 66.9% of the
constructed infrastructure in this phase belongs to Hennepin County.
• The Brooklyn Boulevard street reconstruction project Phase 2 began construction, with a total of $9,106,660 in costs (including
previous years). This amount includes work on streets, as well as water, sewer, storm and street light utilities. Federal funding through
the Surface Transportation Program has been awarded to the City and Hennepin County for this project. Approximatley 71.4% of the
constructed infrastructure in this phase belongs to Hennepin County.
• Playground equipment was replaced at Bellvue, Firehouse, Orchard, and Northport Parks totalling $287,919.
• The Central Garage purchased or completed setup of 17 pieces of machinery & equipment during the year. The total outlay for
machinery and equipment during the year was $2,723,988.
25
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
2021 2020 2021 2020 2021 2020
Land 5,632,883$ 5,632,883$ 2,698,879$ 2,698,879$ 8,331,762$ 8,331,762$
Easements 88,704 88,704 10,285 10,285 98,989 98,989
Construction in progress 3,444,546 11,469,260 3,129,782 11,855,805 6,574,328 23,325,065
Land improvements - - 209,523 238,599 209,523 238,599
Other land improvements 8,667,723 5,840,636 - - 8,667,723 5,840,636
Buildings and improvements 8,331,464 9,188,779 23,926,537 24,820,509 32,258,001 34,009,288
Machinery and equipment 5,294,857 4,484,842 310,009 370,749 5,604,866 4,855,591
Street infrastructure 45,117,228 35,874,790 - - 45,117,228 35,874,790
Street light systems - - 1,404,269 576,172 1,404,269 576,172
Mains and lines - - 52,658,299 40,677,476 52,658,299 40,677,476
Total 76,577,405$ 72,579,894$ 84,347,583$ 81,248,474$ 160,924,988$ 153,828,368$
Additional information on the City’s capital assets can be found in Note 3 (C) on pages 62 through 63 of this ACFR.
Long-Term Debt: At the end of the current year, the City had outstanding long-term bonded debt of $62,189,445.
2021 2020 2021 2020 2021 2020
General obligation tax increment bonds 4,870,000$ 7,300,000$ -$ -$ 4,870,000$ 7,300,000$
General obligation improvement bonds 17,815,502 16,739,519 934,498 1,115,481 18,750,000 17,855,000
General obligation revenue bonds - - 22,350,000 18,905,000 22,350,000 18,905,000
General obligation lease revenue bonds - - 2,420,000 2,520,000 2,420,000 2,520,000
General obligation revenue notes - - 13,799,445 14,791,445 13,799,445 14,791,445
Unamortized premiums (discounts)1,595,587 1,405,244 2,303,519 1,917,557 3,899,106 3,322,801
Compensated absences 1,342,231 1,552,660 - - 1,342,231 1,552,660
Net pension liability 8,362,012 13,240,629 - - 8,362,012 13,240,629
Total OPEB liability 2,679,945 2,451,494 - - 2,679,945 2,451,494
Total 36,665,277$ 42,689,546$ 41,807,462$ 39,249,483$ 78,472,739$ 81,939,029$
The City’s total outstanding bonded debt increased by $818,000 during the current fiscal year, from $61,371,445 to $62,189,445. The
City retired $7,192,000 in principal in 2021, and issued $8,010,000 in new debt for infrastructure projects that included the Grandview
South Area Infrastructure Improvement Project and Storm Water portions of Brooklyn Boulevard Phase 2.
The City’s bond rating is AA from Standard & Poor’s Ratings Services.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Taxable Market Value. The current
debt limitation for the City is $74,046,794. The City does not currently have any debt outstanding that is applicable to the limit.
Additional information on the City’s long-term debt can be found in Note 3 (F) on pages 66 through 70 of this ACFR.
Governmental Activities Business-type Activities Total
CITY OF BROOKLYN CENTER - CAPITAL ASSETS
Governmental Activities Business-type Activities Total
CITY OF BROOKLYN CENTER - LONG-TERM LIABILITIES
(net of depreciation)
26
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2021
Economic Factors and Next Year's Budget and Rates
All of these factors were considered in the preparation of the City’s budget for the 2022 fiscal year.
• The unemployment rate for the City is 5.9% at the end of the 2021 fiscal year, which is a decrease from the rate of 8.7% a year ago.
This compares to the State’s average unemployment rate of 3.4% and the national average of 5.3%.
• An increase in estimated taxable market value of 6.04% from taxes payable 2021 to 2022. The taxable market value increase was
driven by significant increases in residential property values (8.6%) and apartment property values (11.5%).
• Continuing redevelopment throughout the City will yield net growth in tax base and stability in tax base along with providing job
growth in the City.
• Since 2008, the EDA has acquired approximately 35 acres of land including the former Brookdale Square shopping center site and
former Brookdale Ford dealership property. The EDA entered into a Preliminary Development Agreement with Alatus, LLC as the
master developer of this site. In May 2018, the site was federally designated as an Opportunity Zone. The preliminary
development concept proposed involves the construction of a mixed-use apartment/hotel/commercial/single-family development
together with related improvements including a centralized park area, new roads and storm water ponding improvements.
The City’s policy is to maintain a General fund unassigned fund balance of 50% - 52% of the ensuing year’s budgeted General fund
operations. Additionally the City's capital project funding policy transfers the amount of fund balance exceeding 52% to the Capital
Improvements fund following the completed audit of the City's ACFR. Total unassigned and assigned fund balance at the end of 2021
was $13,090,687 (50.92%) of the adopted 2022 budgeted expenditures. The City does not intend to make a Capital Improvements
transfer in 2022.
Requests for Information
This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an interest
in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Director, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430.
27
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28
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2021
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 50,687,442$ 14,327,485$ 65,014,927$
Receivables:
Accounts - net 891,825 3,761,553 4,653,378
Taxes 746,619 - 746,619
Special assessments 5,925,165 561,803 6,486,968
Internal balances 2,562,187 (2,562,187) -
Due from other governments 5,057,279 - 5,057,279
Prepaid items 30,591 238,363 268,954
Inventories 68,045 916,493 984,538
Notes receivable 37,222 - 37,222
Assets held for resale 18,409,270 - 18,409,270
Capital assets:
Nondepreciable 9,166,133 5,838,946 15,005,079
Depreciable 67,411,272 78,508,637 145,919,909
Net pension asset 1,072,154 - 1,072,154
Total assets 162,065,204 101,591,093 263,656,297
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 9,773,883 - 9,773,883
Deferred OPEB resources 641,001 - 641,001
Total deferred outflows of resources 10,414,884 - 10,414,884
LIABILITIES
Accounts payable 1,411,399 487,963 1,899,362
Contracts payable 541,546 135,596 677,142
Accrued salaries and wages 532,664 99,488 632,152
Accrued interest payable 282,962 374,112 657,074
Due to other governments 78,098 118,643 196,741
Deposits payable 190,892 424,284 615,176
Unearned revenue 4,002,704 474,172 4,476,876
Compensated absences payable:
Due within one year 134,223 - 134,223
Due in more than one year 1,208,008 - 1,208,008
Total OPEB liability:
Due within one year 150,986 - 150,986
Due in more than one year 2,528,959 - 2,528,959
Bonds and net pension liability payable:
Due within one year 4,532,277 3,284,723 7,817,000
Due in more than one year 28,110,824 38,522,739 66,633,563
Total liabilities 43,705,542 43,921,720 87,627,262
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 13,618,565 - 13,618,565
Deferred OPEB resources 71,188 - 71,188
State aid received for subsequent years..4,333,251 - 4,333,251
Total deferred inflows of resources 18,023,004 - 18,023,004
NET POSITION
Net investment in capital assets 57,524,408 44,340,339 101,864,747
Restricted for:
Statutory housing obligation 342,740 - 342,740
Tax increment financing 28,667,342 - 28,667,342
Economic development 1,910,507 - 1,910,507
Law enforcement enhancements 67,249 - 67,249
Debt service 8,686,697 - 8,686,697
Pension benefits 897,830 - 897,830
State-aid street systems 1,956,119 - 1,956,119
Unrestricted 10,698,650 13,329,034 24,027,684
Total net position 110,751,542$ 57,669,373$ 168,420,915$
The notes to the financial statements are an integral part of this statement.
29
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
Charges For
FUNCTIONS/PROGRAMS Expenses Services
Government activities:
General government 4,954,933$ 360,099$
Public safety 12,251,370 560,771
Public works 12,756,066 3,681
Community services 210,488 -
Parks and recreation 3,859,928 620,839
Economic development 2,192,700 103,408
Interest on long-term debt 565,379 -
Total government activities 36,790,864 1,648,798
Business-type activities:
Municipal liquor 5,911,141 5,905,844
Earle Brown Heritage Center 2,670,277 1,442,635
Water utility 4,452,157 4,680,155
Sanitary sewer utility 4,499,797 4,681,779
Storm drainage utility 2,437,706 1,770,889
Street light utility 389,853 487,516
Recycling utility 403,057 393,347
Total business-type activities 20,763,988 19,362,165
Total 57,554,852$ 21,010,963$
The notes to the financial statements are an integral part of this statement.
30
Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
-$ -$ (4,594,834)$ -$ (4,594,834)$
1,106,827 - (10,583,772) - (10,583,772)
7,385,876 4,152,875 (1,213,634) - (1,213,634)
- - (210,488) - (210,488)
53,013 - (3,186,076) - (3,186,076)
27,276 - (2,062,016) - (2,062,016)
- - (565,379) - (565,379)
8,572,992 4,152,875 (22,416,199) - (22,416,199)
- - - (5,297) (5,297)
- - - (1,227,642) (1,227,642)
- - - 227,998 227,998
- - - 181,982 181,982
- 50,000 - (616,817) (616,817)
- - - 97,663 97,663
- - - (9,710) (9,710)
- 50,000 - (1,351,823) (1,351,823)
8,572,992$ 4,202,875$ (22,416,199) (1,351,823) (23,768,022)
General revenues:
Property taxes 20,359,868 - 20,359,868
Tax increments 7,380,184 - 7,380,184
Lodging taxes 732,538 - 732,538
Grants and contributions not
restricted to specific programs 2,916,618 300,000 3,216,618
Unrestricted investment earnings (100,702) (49,848) (150,550)
Gain on disposal of capital asset 99,450 - 99,450
Transfers - capital assets (500,779) 500,779 -
Total general revenues and transfers 30,887,177 750,931 31,638,108
Change in net position 8,470,978 (600,892) 7,870,086
Net position - January 1 102,280,564 58,270,265 160,550,829
Net position - December 31 110,751,542$ 57,669,373$ 168,420,915$
31
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2021
Tax
Increment Debt
General District No. 3 Service
ASSETS
Cash and investments 15,282,088$ 8,315,524$ 4,797,382$
Receivables:
Accounts - net 683,017 - -
Current taxes 82,358 7,847 6,874
Delinquent taxes 145,114 499,752 -
Special assessments 77,596 - 4,167,403
Due from other funds 199,333 - -
Due from other governments 8,093 - -
Notes receivable - - -
Inventories 38,575 - -
Prepaid items 30,577 - -
Advances to other funds - - -
Assets held for resale - 17,974,292 -
Total assets 16,546,751 26,797,415 8,971,659
LIABILITIES
Accounts payable 369,721 68,401 2,000
Contracts payable - - -
Accrued salaries and wages 517,065 - -
Due to other funds - - -
Due to other governments 32,618 11,453 -
Deposits payable 164,617 1,856 -
Unearned revenue 2,084,514 1,035 -
Advances from other funds - - -
Total liabilities 3,168,535 82,745 2,000
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 145,114 - -
Unavailable revenue - tax increments - 499,752 -
Unavailable revenue - special assessments 73,263 - 4,160,508
Unavailable revenue - intergovernmental - - -
Total deferred inflows of resources 218,377 499,752 4,160,508
FUND BALANCES (DEFICITS)
Nonspendable 69,152 - -
Restricted - 26,214,918 4,809,151
Committed - - -
Assigned - - -
Unassigned 13,090,687 - -
Total fund balances 13,159,839 26,214,918 4,809,151
Total liabilities, deferred inflows of
resources and fund balances 16,546,751$ 26,797,415$ 8,971,659$
The notes to the financial statements are an integral part of this statement.
32
Municipal
State Aid Special Other
Capital for Assessment Street Nonmajor Total
Improvements Construction Construction Reconstruction Governmental Governmental
4,871,356$ 1,956,116$ 814,779$ 4,894,836$ 5,576,296$ 46,508,377$
- - - 187,563 2,507 873,087
- - - - 4,674 101,753
- - - - - 644,866
524 - 1,679,642 - - 5,925,165
- - - - - 199,333
592,308 4,333,254 - - 116,323 5,049,978
- - - - 37,222 37,222
- - - - 4,374 42,949
- - - - - 30,577
- - - - 255,575 255,575
- - - - 434,978 18,409,270
5,464,188 6,289,370 2,494,421 5,082,399 6,431,949 78,078,152
605,359 - 191,022 8,933 150,759 1,396,195
362,482 - 160,163 18,901 - 541,546
- - - - 10,673 527,738
- - - - 199,333 199,333
- - - - 33,128 77,199
- - - - 24,419 190,892
1,917,155 - - - - 4,002,704
- - - - 255,575 255,575
2,884,996 - 351,185 27,834 673,887 7,191,182
- - - - - 145,114
- - - - - 499,752
524 - 1,676,520 - - 5,910,815
- 4,333,251 - - - 4,333,251
524 4,333,251 1,676,520 - - 10,888,932
- - - - 4,374 73,526
- 1,956,119 - 324,161 4,273,168 37,577,517
2,578,668 - - 4,730,404 1,693,751 9,002,823
- - 466,716 - - 466,716
- - - - (213,231) 12,877,456
2,578,668 1,956,119 466,716 5,054,565 5,758,062 59,998,038
5,464,188$ 6,289,370$ 2,494,421$ 5,082,399$ 6,431,949$ 78,078,152$
33
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34
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
December 31, 2021
Fund balances - governmental funds 59,998,038$
Amounts reported for the governmental activities within the statement of net position are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported as
assets in governmental funds.
Cost of capital assets 127,793,941
Accumulated depreciation (56,620,564)
Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore,
are not reported as liabilities in governmental funds.
Bonds payable (22,685,502)
Accrued interest payable (282,962)
Unamortized premium (1,595,587)
Some receivables are not available soon enough to pay for the current period's
expenditures, and therefore, are unavailable in governmental funds.
Delinquent property taxes receivable 145,114
Delinquent tax increments receivable 499,752
Special assessments receivable 5,910,815
The Plan Fiduciary Net Position of the City's Fire Relief Association Pension Fund currently exceeds the
actuarially determined total pension liability creating a net pension asset 1,072,154
Deferred outflows related to the City's Fire Relief Association Pension Fund
Change of assumptions 48,506
Contributions to the plan subsequent to the measurement date 187,797
Deferred inflows related to City's Fire Relief Association Pension Fund
Grant funding of contributions to the plan subsequent to the measurement date (187,797)
Net difference between expected and actual liability, projected and actual investment earnings, and change
of assumptions (222,830)
Internal service funds are used by management to charge the cost of certain activities to individual funds.
The assets, liabilities, and deferred outflows/inflows are included in the governmental statement of net
position.(3,309,333)
Total net position - governmental activities 110,751,542$
The notes to the financial statements are an integral part of this statement.
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2021
Tax
Increment Debt
General District No. 3 Service
REVENUES
Property taxes 18,432,435$ -$ 1,531,175$
Tax increments - 6,205,922 -
Lodging taxes 732,538 - -
Franchise fees - - -
Licenses and permits 774,592 - -
Intergovernmental 2,043,721 - -
Charges for services 387,295 77,732 -
Special assessments 40,766 - 1,343,740
Fines and forfeits 161,915 - -
Investment earnings (charges) (net of fair value adjustment)(19,188) (20,493) (10,620)
Miscellaneous 373,580 27,386 -
Total revenues 22,927,654 6,290,547 2,864,295
EXPENDITURES
Current:
General government 3,701,073 - -
Public safety 12,750,786 - -
Public works 2,309,155 - -
Community services 210,488 - -
Parks and recreation 3,276,003 - -
Economic development 625,866 891,138 -
Nondepartmental 981,670 - -
Capital outlay:
Public works - - -
Parks and recreation 10,000 - -
Economic development 1,752 - -
Debt service:
Principal - - 4,359,017
Interest - - 670,248
Fiscal agent fees - - 18,481
Bond issuance costs - - -
Total expenditures 23,866,793 891,138 5,047,746
Excess (deficiency) of revenues
over (under) expenditures (939,139) 5,399,409 (2,183,451)
OTHER FINANCING SOURCES (USES)
Transfers in 108,410 1,500 2,595,420
Issuance of debt - - -
Premium on issuance of debt - - -
Transfers out (215,000) (2,243,137) (1,500)
Total other financing sources (uses)(106,590) (2,241,637) 2,593,920
Net change in fund balance (1,045,729) 3,157,772 410,469
Fund balances - January 1 14,205,568 23,057,146 4,398,682
Fund balances - December 31 13,159,839$ 26,214,918$ 4,809,151$
The notes to the financial statements are an integral part of this statement.
36
Municipal
State Aid Special Other
Capital for Assessment Street Nonmajor Total
Improvements Construction Construction Reconstruction Governmental Governmental
-$ -$ -$ -$ 449,411$ 20,413,021$
- - - - 873,624 7,079,546
- - - - - 732,538
- - - 748,209 - 748,209
- - - - - 774,592
8,189,135 1,354,625 - - 102,987 11,690,468
- - 1,650 - 362,230 828,907
- - 489,600 - - 1,874,106
- - - - 67,627 229,542
(3,961) (7,622) - (18,105) (12,084) (92,073)
1,601 - - - 20,841 423,408
8,186,775 1,347,003 491,250 730,104 1,864,636 44,702,264
- - - - 207,662 3,908,735
- - - - 80,080 12,830,866
- 209,036 1,077 - - 2,519,268
- - - - - 210,488
- - - - 418,328 3,694,331
- - - - 681,985 2,198,989
- - - - - 981,670
6,381,314 1,854,232 2,802,631 2,807,050 - 13,845,227
- - - - - 10,000
- - - - - 1,752
- - - - - 4,359,017
- - - - - 670,248
- - - - - 18,481
- - 21,151 29,328 - 50,479
6,381,314 2,063,268 2,824,859 2,836,378 1,388,055 45,299,551
1,805,461 (716,265) (2,333,609) (2,106,274) 476,581 (597,287)
- - - - 665,180 3,370,510
- - 1,183,866 1,821,134 - 3,005,000
- - 136,326 209,931 - 346,257
- - - - (802,463) (3,262,100)
- - 1,320,192 2,031,065 (137,283) 3,459,667
1,805,461 (716,265) (1,013,417) (75,209) 339,298 2,862,380
773,207 2,672,384 1,480,133 5,129,774 5,418,764 57,135,658
2,578,668$ 1,956,119$ 466,716$ 5,054,565$ 5,758,062$ 59,998,038$
37
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2021
Total net change in fund balances - governmental funds 2,862,380$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities the
cost of those assets is allocated over their estimated useful lives as depreciation.
Capital outlays 6,716,774
Depreciation expense (3,981,826)
Contributions of capital assets from the proprietary funds increase net position in the statement of
activities, but do not appear in the governmental funds because they are not financial resources.(500,779)
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, the governmental funds report
the affect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are
deferred and amortized in the statement of activities
Long-term debt issued (including premiums on current year bonds)(3,351,257)
Principal repayments 4,359,017
Amortization of bond discount and premium 155,914
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due, and
thus requires the use of current financial resources. In the statement of activities, however, interest
expense is recognized as the interest accrues, regardless of when it is due.17,915
Contributions to the Fire Relief Association Pension are reported as expenses in the fund financial
statements. In the statement of activities, however, all facets of the pension plan are taken into account
and when considering things such as investment return, changes in assumptions, and plan performance
differing from expectations, pension expense related to this retirement plan for the year was reported at
the following amount.131,829
Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of
accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the
current period.
Property taxes (53,153)
Tax increments 300,638
Special assessments 555,357
Internal service funds are used by management to charge the cost of certain activities to individual funds.
This amount is net revenue attributable to governmental activities.1,258,169
Change in net position - governmental activities 8,470,978$
The notes to the financial statements are an integral part of this statement.
38
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND - STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes 18,548,357$ 18,548,357$ 18,432,435$ (115,922)$
Lodging taxes 500,000 500,000 732,538 232,538
Licenses and permits 1,016,093 1,016,093 774,592 (241,501)
Intergovernmental 1,854,590 1,854,590 2,043,721 189,131
Charges for services 825,750 825,750 387,295 (438,455)
Special assessments 100,000 100,000 40,766 (59,234)
Fines and forfeits 216,000 216,000 161,915 (54,085)
Investment earnings (net of fair value adjustment)79,900 79,900 (19,188) (99,088)
Miscellaneous 163,200 163,200 373,580 210,380
Total revenues 23,303,890 23,303,890 22,927,654 (376,236)
EXPENDITURES
Current:
General government 3,734,626 3,734,626 3,701,073 33,553
Public safety 12,921,865 12,921,865 12,750,786 171,079
Public works 2,275,017 2,275,017 2,309,155 (34,138)
Community services 187,000 187,000 210,488 (23,488)
Parks and recreation 3,277,320 3,277,320 3,276,003 1,317
Economic development 504,909 504,909 625,866 (120,957)
Nondepartmental 627,790 627,790 981,670 (353,880)
Capital outlay:
Parks and recreation 7,000 7,000 10,000 (3,000)
Economic development - - 1,752 (1,752)
Total expenditures 23,535,527 23,535,527 23,866,793 (331,266)
Excess (deficiency) of revenues
over (under) expenditures (231,637) (231,637) (939,139) (707,502)
OTHER FINANCING SOURCES (USES)
Transfers in 55,000 55,000 108,410 53,410
Transfers out (220,000) (220,000) (215,000) 5,000
Total other financing sources (uses)(165,000) (165,000) (106,590) 58,410
Net change in fund balance (396,637) (396,637) (1,045,729) (649,092)
Fund balance - January 1 14,205,568 14,205,568 14,205,568 -
Fund balance - December 31 13,808,931$ 13,808,931$ 13,159,839$ (649,092)$
The notes to the financial statements are an integral part of this statement.
39
CITY OF BROOKLYN CENTER, MINNESOTA
TAX INCREMENT DISTRICT NO. 3 - STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Tax increments 4,514,347$ 4,514,347$ 6,205,922$ 1,691,575$
Charges for services 96,190 96,190 77,732 (18,458)
Investment earnings (net of fair value adjustment)44,600 44,600 (20,493) (65,093)
Miscellaneous 921,206 921,206 27,386 (893,820)
Total revenues 5,576,343 5,576,343 6,290,547 714,204
EXPENDITURES
Current:
Economic development 1,562,156 1,562,156 891,138 671,018
Excess of revenues
over expenditures 4,014,187 4,014,187 5,399,409 1,385,222
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,500 1,500
Transfers out (2,244,938) (2,244,938) (2,243,137) 1,801
Total other financing sources (uses)(2,244,938) (2,244,938) (2,241,637) 3,301
Net change in fund balance 1,769,249 1,769,249 3,157,772 1,388,523
Fund balance - January 1 23,057,146 23,057,146 23,057,146 -
Fund balance - December 31 24,826,395$ 24,826,395$ 26,214,918$ 1,388,523$
The notes to the financial statements are an integral part of this statement.
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41
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2021
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
ASSETS
Current assets:
Cash and cash equivalents 846,457$ 813,319$ 2,359,055$ 4,309,130$
Receivables:
Accounts - net 521,367 121,598 1,508,777 1,079,827
Special assessments - - 561,803 -
Due from other governments - - - -
Prepaid items 11,775 11,816 1,259 212,254
Inventories 814,746 39,059 62,688 -
Total current assets 2,194,345 985,792 4,493,582 5,601,211
Noncurrent assets:
Capital assets:
Land 594,298 1,493,300 20,734 3,389
Easements - - - 20,335
Land improvements - 570,769 - -
Buildings and improvements 2,952,675 13,057,343 27,011,754 2,991,669
Machinery and equipment 106,913 740,815 163,334 179,130
Street light systems - - - -
Mains and lines - - 33,558,819 33,823,673
Construction in progress - - 667,144 551,237
Total capital assets 3,653,886 15,862,227 61,421,785 37,569,433
Less: accumulated depreciation (307,048) (12,640,755) (25,764,981) (19,380,367)
Net capital assets 3,346,838 3,221,472 35,656,804 18,189,066
Total noncurrent assets 3,346,838 3,221,472 35,656,804 18,189,066
Total assets 5,541,183 4,207,264 40,150,386 23,790,277
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources - - - -
Deferred OPEB resources - - - -
Total deferred outflows of resources - - - -
LIABILITIES
Current liabilities:
Accounts payable 198,480 28,922 27,991 141,237
Contracts payable - 135,596 - -
Accrued salaries and wages 31,048 29,961 19,313 8,755
Accrued interest payable 34,000 - 191,908 79,572
Due to other governments 55,855 10,553 21,529 30,706
Deposits payable - 419,634 4,650 -
Unearned revenue 46,117 1,600 426,455 -
Notes payable - - 1,002,000 -
Bonds payable 135,000 - 1,071,250 721,473
Compensated absences payable - - - -
Current OPEB liability - - - -
Total current liabilities 500,500 626,266 2,765,096 981,743
Noncurrent liabilities:
Notes payable - - 12,797,445 -
Bonds payable 2,480,819 - 11,161,481 6,715,632
Compensated absences payable - - - -
Noncurrent OPEB liability - - - -
Net pension liability - - - -
Total noncurrent liabilities 2,480,819 - 23,958,926 6,715,632
Total liabilities 2,981,319 626,266 26,724,022 7,697,375
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources - - - -
Deferred OPEB resources - - - -
Total deferred inflows of resources - - - -
NET POSITION
Net investment in capital assets 731,019 3,221,472 10,400,978 10,943,109
Unrestricted 1,828,845 359,526 3,025,386 5,149,793
Total net position 2,559,864$ 3,580,998$ 13,426,364$ 16,092,902$
Net position from this Statement
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
The notes to the financial statements are an integral part of this statement.
Business-Type Activities
42
Governmental
Activities-
Storm Drainage Street Light Recycling Total Internal
Utility Utility Utility Enterprise Service
4,998,747$ 795,499$ 205,278$ 14,327,485$ 4,179,065$
381,508 76,496 71,980 3,761,553 18,738
- - - 561,803 -
- - - - 7,301
1,259 - - 238,363 14
- - - 916,493 25,096
5,381,514 871,995 277,258 19,805,697 4,230,214
587,158 - - 2,698,879 -
10,285 - - 30,620 -
- - - 570,769 -
- - - 46,013,441 166,108
130,512 - - 1,320,704 11,494,834
- 2,016,839 - 2,016,839 -
41,147,316 - - 108,529,808 -
1,375,348 536,053 - 3,129,782 816,301
43,250,619 2,552,892 - 164,310,842 12,477,243
(21,257,538) (612,570) - (79,963,259) (7,073,215)
21,993,081 1,940,322 - 84,347,583 5,404,028
21,993,081 1,940,322 - 84,347,583 5,404,028
27,374,595 2,812,317 277,258 104,153,280 9,634,242
- - - - 9,537,580
- - - - 641,001
- - - - 10,178,581
85,204 4,990 1,139 487,963 15,204
- - - 135,596 -
10,411 - - 99,488 4,926
68,632 - - 374,112 -
- - - 118,643 899
- - - 424,284 -
- - - 474,172 -
- - - 1,002,000 -
355,000 - - 2,282,723 -
- - - - 134,223
- - - - 150,986
519,247 4,990 1,139 5,398,981 306,238
- - - 12,797,445 -
5,367,362 - - 25,725,294 -
- - - - 1,208,008
- - - - 2,528,959
- - - - 8,362,012
5,367,362 - - 38,522,739 12,098,979
5,886,609 4,990 1,139 43,921,720 12,405,217
- - - - 13,207,938
- - - - 71,188
- - - - 13,279,126
17,103,439 1,940,322 - 44,340,339 5,404,028
4,384,547 867,005 276,119 15,891,221 (11,275,548)
21,487,986$ 2,807,327$ 276,119$ 60,231,560$ (5,871,520)$
60,231,560$
(2,562,187)
57,669,373$
Business-Type Activities
43
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2021
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
OPERATING REVENUES
Sales and user fees 5,556,568$ 1,423,803$ 4,610,129$ 4,680,679$
Cost of sales (4,130,013) (768,579) - -
Total operating revenues 1,426,555 655,224 4,610,129 4,680,679
OPERATING EXPENSES
Personal services 1,018,026 898,864 658,369 242,910
Supplies 81,577 40,789 305,369 30,210
Other services 320,498 519,470 887,879 2,987,690
Insurance 24,411 39,446 53,447 22,207
Utilities 54,704 175,543 256,178 34,630
Rent 137,698 - - -
Depreciation 119,518 255,079 1,897,753 1,030,919
Total operating expenses 1,756,432 1,929,191 4,058,995 4,348,566
Operating income (loss)(329,877) (1,273,967) 551,134 332,113
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - 300,000 - -
Investment earnings (net of fair value adjustment)(1,174) (2,880) (11,465) (15,254)
Special assessments - - 66,491 -
Gain on sale of capital assets - - - -
Loss on sale of capital assets - - - -
Other revenue (expense)349,276 18,832 3,535 1,100
Interest and fiscal agent fees (69,396) - (409,078) (148,917)
Total nonoperating revenues (expenses)278,706 315,952 (350,517) (163,071)
Income (loss) before contributions and transfers (51,171) (958,015) 200,617 169,042
Capital contributions from other funds - - - -
Transfers out - - - -
Change in net position (51,171) (958,015) 200,617 169,042
Net position - January 1 2,611,035 4,539,013 13,225,747 15,923,860
Net position - December 31 2,559,864$ 3,580,998$ 13,426,364$ 16,092,902$
Change in net position from this Statement
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net position of business-type activities
The notes to the financial statements are an integral part of this statement.
Business-Type Activities
44
Governmental
Activities-
Storm Drainage Street Light Recycling Total Internal
Utility Utility Utility Enterprise Service
1,770,889$ 448,957$ 393,347$ 18,884,372$ 3,828,626$
- - - (4,898,592) -
1,770,889 448,957 393,347 13,985,780 3,828,626
328,245 - - 3,146,414 934,694
27,703 10 10 485,668 389,569
502,701 102,590 401,643 5,722,471 281,000
2,874 885 1,404 144,674 66,663
1,843 185,253 - 708,151 3,614
- - - 137,698 -
1,444,192 101,115 - 4,848,576 927,530
2,307,558 389,853 403,057 15,193,652 2,603,070
(536,669) 59,104 (9,710) (1,207,872) 1,225,556
50,000 - - 350,000 91,986
(15,722) (2,894) (459) (49,848) (8,629)
- - - 66,491 -
- - - - 99,450
- - - - (30,157)
- 38,559 - 411,302 74,707
(130,687) - - (758,078) -
(96,409) 35,665 (459) 19,867 227,357
(633,078) 94,769 (10,169) (1,188,005) 1,452,913
485,710 15,069 - 500,779 -
- - - - (108,410)
(147,368) 109,838 (10,169) (687,226) 1,344,503
21,635,354 2,697,489 286,288 60,918,786 (7,216,023)
21,487,986$ 2,807,327$ 276,119$ 60,231,560$ (5,871,520)$
(687,226)$
86,334
(600,892)$
Business-Type Activities
45
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2021
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 5,059,860$ 1,312,538$ 4,327,789$ 4,725,866$
Receipts from interfund services provided - - - -
Other operating receipts 349,276 318,832 3,535 1,100
Payments for interfund services received (178,000) (188,435) (300,118) (280,345)
Payments to suppliers (4,683,454) (1,440,712) (1,290,359) (2,991,197)
Payments to employees (956,473) (848,783) (623,163) (227,720)
Net cash flows provided (used) by operating activities (408,791) (846,560) 2,117,684 1,227,704
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers out - - - -
Special assessments - - 66,491 -
Intergovernmental grants - - - -
Net cash flows provided (used) by noncapital financing activities - - 66,491 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets - - (2,552,583) (2,438,339)
Principal paid on revenue and improvement bonds (100,000) - (848,750) (577,233)
Principal paid on revenue notes - - (992,000) -
Interest paid on capital debt (85,050) - (484,967) (187,252)
Proceeds from g.o. revenue bonds - - 1,929,083 1,421,407
Proceeds from sale of assets - - - -
Net cash flows provided (used) by capital and related financing activities (185,050) - (2,949,217) (1,781,417)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (1,174) (2,880) (11,465) (15,254)
Net increase (decrease) in cash and cash equivalents (595,015) (849,440) (776,507) (568,967)
Cash and cash equivalents - January 1 1,441,472 1,662,759 3,135,562 4,878,097
Cash and cash equivalents - December 31 846,457$ 813,319$ 2,359,055$ 4,309,130$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (329,877)$ (1,273,967)$ 551,134$ 332,113$
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Depreciation 119,518 255,079 1,897,753 1,030,919
Other income (expense) related to operations 349,276 318,832 3,535 1,100
(Increase) decrease in assets:
Accounts receivable (513,240) (111,265) (321,465) 41,761
Assessments receivable - - (87,079) 3,426
Prepaid items 11,473 1,463 - (7,438)
Inventories (119,551) (2,734) (12,919) -
(Increase) decrease in deferred outflows of resources:
Deferred outflows for pension - - - -
Increase (decrease) in liabilities
Accounts payable 61,539 (51,348) (54,109) (176,641)
Due to other governments (8,489) 10,553 12,820 -
Net pension liability - - - -
Accrued salaries and wages 4,028 6,827 1,810 2,464
Unearned revenue 16,532 - 126,204 -
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - - - -
Net cash flows provided (used) by operating activities (408,791)$ (846,560)$ 2,117,684$ 1,227,704$
NONCASH FINANCING ACTIVITIES
Capital assets contributed from other funds -$ -$ -$ -$
Capital asset trade-ins -$ -$ -$ -$
Loss on disposal of capital assets -$ -$ -$ -$
Grants deposited with pension plan -$ -$ -$ -$
Capitalized loss on trade-in -$ -$ -$ -$
The notes to the financial statements are an integral part of this statement.
Business-Type Activities
46
Governmental
Activities-
Storm Drainage Street Light Recycling Total Internal
Utility Utility Utility Enterprise Service
1,769,733$ 459,965$ 402,156$ 18,057,907$ -$
- - - - 3,875,059
50,000 38,559 - 761,302 74,707
(272,184) (47,930) (17,831) (1,284,843) (57,132)
(195,031) (251,678) (384,146) (11,236,577) (699,563)
(310,167) - - (2,966,306) (2,748,526)
1,042,351 198,916 179 3,331,483 444,545
- - - - (108,410)
- - - 66,491 -
- - - - 15,549
- - - 66,491 (92,861)
(1,902,483) (553,500) - (7,446,905) (2,723,988)
(315,000) - - (1,840,983) -
- - - (992,000) -
(160,663) - - (917,932) -
2,230,629 - - 5,581,119 -
- - - - 102,409
(147,517) (553,500) - (5,616,701) (2,621,579)
(15,722) (2,894) (459) (49,848) (8,629)
879,112 (357,478) (280) (2,268,575) (2,278,524)
4,119,635 1,152,977 205,558 16,596,060 6,457,589
4,998,747$ 795,499$ 205,278$ 14,327,485$ 4,179,065$
(536,669)$ 59,104$ (9,710)$ (1,207,872)$ 1,225,556$
1,444,192 101,115 - 4,848,576 927,530
50,000 38,559 - 761,302 151,144
(1,156) 11,008 8,809 (885,548) 46,932
(83,653) -
- - - 5,498 (14)
- - - (135,204) (4,144)
- - - - (5,848,395)
84,846 (10,870) 1,080 (145,503) (11,691)
- - - 14,884 -
- - - - (4,878,617)
1,138 - - 16,267 10,375
- - - 142,736 -
- - - - 8,825,869
1,042,351$ 198,916$ 179$ 3,331,483$ 444,545$
485,710$ 15,069$ -$ 500,779$ -$
-$ -$ -$ -$ 160,000$
-$ -$ -$ -$ 30,157$
-$ -$ -$ -$ 42,474$
-$ -$ -$ -$ 52,000$
Business-Type Activities
47
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48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The City of Brooklyn Center was incorporated in 1911 and has operated under a Council/Manager form of government since the
adoption of the City charter in 1966. The governing body consists of a Mayor and four City Council members elected at-large to serve
four-year staggered terms. The City provides a full range of municipal services to its citizens, including public safety (police and fire
protection), highways and streets, parks and recreation, public improvements, planning and inspections, economic development, sanitary
and storm sewer, water, and general administrative services.
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City have been prepared in accordance with accounting principles generally accepted in the United States
of America (GAAP), as applied to governmental units by the Governmental Accounting Standards Board (GASB).
The City’s significant accounting policies are described below.
A. REPORTING ENTITY
The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are not legally separate from the
City. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are
included within the basic financial statements of the City because of the significance of their operational or financial relationships
with the City.
The City is considered financially accountable for a component unit if it appoints a voting majority of the organization’s governing
body and is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of
services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits
to, or impose specific financial burdens on, the City.
Blended component units, although legally separate, are, in substance, part of the government’s operations. A blended component
unit is reported as if it were a fund of the City throughout the year. It is included at both the government-wide and fund financial
reporting levels.
A description of the City’s blended component units follows:
City of Brooklyn Center Housing and Redevelopment Authority (HRA) - The City Council serves as the Board of Directors for the
HRA, with the power to levy taxes and enter into contracts. The Council reviews and approves the tax levy and all expenditures for
the HRA. The HRA is reported as a Special Revenue fund. The HRA does not issue separate financial statements. Financial
information may be obtained at the City’s offices.
City of Brooklyn Center Economic Development Authority (EDA) – The governing board for the EDA is the City Council, with the
power to issue bonds and enter into contracts. The council reviews and approves major community development improvement
activities. City general obligation tax increment financing bonds are issued to finance EDA activities. The EDA is reported as a
Special Revenue fund. The EDA does not issue separate financial statements. Financial information may be obtained at the City’s
offices.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all
activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and
charges for support.
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1)
charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given
function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements
of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and
major individual enterprise funds are reported as separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual
basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end
of the current fiscal year. Reimbursement grants are considered available if they are collected within one year of the end of the
current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to claims and judgments, compensated absences, net pension liabilities, and
OPEB are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal
year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Only the
portion of special assessments receivable due within the current fiscal year is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available only when cash is received by the
government.
The City reports the following major governmental funds:
General Fund
This is the City’s primary operating fund. It accounts for all financial resources of the general government, except
those required to be accounted for in another fund. Most of the current day-to-day operations of the governmental
units are financed from this fund.
Tax Increment District No. 3 Special Revenue Fund
This fund was established to account for the collection of tax increment generated revenues for parcels within the
District. These funds are used to finance the various redevelopment activities throughout the City. This fund also
provides the resources to repay the debt service on bonds issued to finance these redevelopment activities.
Debt Service Fund
This fund is used to account for the collection of property taxes, special assessments and other resources which are
used to repay the principal and interest on debt issued for various improvements in the City.
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Capital Improvements Capital Project Fund
This fund was established to provide funds and to account for the expenditure of such funds, for major capital outlays.
The accumulation of funds to provide for such outlays is an attempt to reduce future debt issuance. The financing
sources of the fund primarily consist of transfers from other funds.
Municipal State-Aid for Construction Capital Project Fund
This fund was established to account for the state allotment of construction and maintenance aid. The source of the
State funding is provided for through the collection of gasoline taxes. The funds accumulated must be used on
transportation related construction and maintenance projects.
Special Assessment Construction Capital Project Fund
This fund was established to account for the resources and expenditures required for the acquisition and construction
of capital facilities or improvements financed wholly or in part by special assessments levied against benefited
properties.
Street Reconstruction Capital Project Fund
This fund was established to account for the resources and expenditures required for the acquisition and construction
of capital facilities or improvements financed wholly or in part by franchise fees.
The government reports the following major enterprise funds:
Municipal Liquor Fund
The fund accounts for the operations of the City’s municipal off-sale liquor stores.
Earle Brown Heritage Center Fund
The Earle Brown Heritage Center is a pioneer farmstead that has been historically preserved and restored as a
modern multipurpose facility. Its convention center can host conferences, trade shows and concerts.
Water Utility Fund
The fund accounts for pumping, treatment and distribution of water to customers. Administration, wells, water
treatment, water storage, and distribution are included.
Sanitary Sewer Utility Fund
The fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations.
Sewage is treated by the Metropolitan Council Environmental Services whose fees represent about 60% of this fund’s
operating expenses.
Storm Drainage Utility Fund
The fund accounts for the collection and treatment of surface runoff water that does not require sanitary wastewater
treatment. It incorporates not only the storm sewer collection system, but also structures such as holding ponds and
facilities to improve water quality. Fees are based upon the quantity of water running off a property and vary with
both size and absorption characteristics of the parcel.
Street Light Utility Fund
The fund accounts for the electrical service, maintenance, repair and replacement of lights owned by the City as well
as those lights owned by Xcel Energy.
Recycling Utility Fund
The fund accounts for the contracted services to provide a City wide recycling program.
Additionally, the City reports the following fund type:
Internal Service Funds
Account for compensated absences, health care insurance benefits for retired employees, pension liabilities, and
central garage services provided to other departments of the City on a cost reimbursement basis.
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to
this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations,
such as buying goods and services or payments in lieu of taxes. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the enterprise funds and internal service funds are charges to customers for sales
and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
D. CASH AND INVESTMENTS
The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All
of the cash and investments allocated to the proprietary funds have original maturities of 90 days or less.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized
investments. Earnings from pooled investments are allocated on the basis of applicable participation by each of the funds.
The City’s investment policy authorizes the City to invest in the following:
a) Securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, itsUnited States Securities: including bonds, notes, bills or other securities which are direct obligations of the United States, its
agencies, its instrumentalities, or organizations created by an act of Congress, which carry full faith and credit of the United States.
b) Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least two
nationally recognized rating agencies and matures in 90 days or less.
c) Certificates of Deposits (Time Deposits) that are fully insured by the Federal Deposit Insurance Corporation.
d) Repurchase agreements and reverse repurchase agreements may be entered into with financial institutions identified by Minnesota
Statutes Chapter 118A. Reverse repurchase agreements may only be entered into for a period of 90 days or less and only to meet
short-term cash flow needs.
e) Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes Chapter 118A.
f) Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter 118A.
g) Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of short term
securities permitted by Minnesota Statutes 118A.
h) Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a
premium, prior to maturing using surplus funds of the debt service fund set up for that issue.
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
i) General obligation bonds of state or local governments rated A or better by a national bond rating service.
j) Revenue obligations of state or local governments rated AA or better by a national bond rating agency.
k) The Minnesota Municipal Money Market Fund (4M) that was established by the League of Minnesota Cities to address the
investment needs of Minnesota cities.
Investments are reported at fair value, based on quoted market prices as of the balance sheet date, except for investments in external
investment pools, which are stated at amortized cost. The reported value of these funds is the same as the value of the pool shares.
For the 4M fund, there are no unfunded commitments, redemption frequency is daily, and there is no redemption notice for the Liquid
class; the redemption notice period is 14 days for the Plus Class. Adjustments necessary to record investments at fair value are
recorded in the operating statement as increases or decreases in investment earnings. Investment income on commingled funds is
allocated monthly, based on month-end balances.
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered.
Short-term interfund loans are classified as “due to/from other funds.” All short-term interfund receivables and payables at December
31, 2021 are planned to be eliminated in 2022. Long-term interfund loans are classified as “advances to/from other funds.” Any
residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide
financial statements as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset by restricted or committed fund balance in applicable
governmental funds. This classification is based on the restraint that will be placed on the advanced funds when they are returned to
the lending fund.
All miscellaneous accounts receivable and trade receivables, other than utilities, are presented net of an allowance for doubtful
accounts. All utility trade receivables are reported at gross because it is the City’s policy to certify delinquent account balances as
special assessments. The City expects to make full collection of all property tax and special assessment receivables, so no allowance
is considered necessary.
Property tax levies are submitted to the County in December each year. The County allocates these levies across taxable properties in
the City based on valuations certified in the prior year. The County collects these levies and distributes the City’s proceeds in June
and December of the fiscal year. These taxes are reported as general revenues in the government-wide financial statements in the year
levied. Unpaid taxes at December 31 become liens on the respective property and are classified as delinquent receivables and are
fully offset by a deferred inflow of resources in the fund financial statements. Delinquent taxes receivable includes the past six years
of uncollected taxes.
Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are
recorded as receivables upon certification to the County. Governmental special assessments have been offset by a deferred inflow of
resources for collections not received within 60 days after year end in the fund financial statements.
F. INVENTORIES AND PREPAID ITEMS
Inventories in the governmental funds are reported using the consumption method and valued at cost, using the first in/first out (FIFO)
method. Inventories in the proprietary funds are valued at cost, using the weighted average method in the Municipal Liquor and Earle
Brown Heritage Center Funds and the FIFO method in all other funds.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as
expenditures/expenses at the time of consumption.
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
G. ASSETS HELD FOR RESALE
Assets held for resale represent various property purchases made by the City with the intent to sell in order to increase tax base or to
attract new businesses. These assets are stated at the lower of cost or acquisition value. During the year ended December 31, 2021
management has reviewed the cost value reported for these assets and has indicated the properties are fairly presented for financial
reporting purposes.
H. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and
intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost
in excess of the amounts in the table below and an estimated useful life in excess of one year. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the
date of donation.
Infrastructure $ 250,000
Buildings and Building Improvements 50,000
Land Improvements 25,000
Heavy Equipment 25,000
Furniture and Furnishings 10,000
Motorized Vehicles 10,000
Technology Equipment 10,000
Land Easements 10,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not
capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets of the City, as well as the component units, are depreciated using the straight line method over the following estimated
useful lives:
Easements - temporary
Land improvements 25 years
Buildings and structures 25 years
Water and sewer mains and lines, wells and storage
tanks, sewer lift stations 25 years
Infrastructure 25 years
Street light systems 15 years
Machinery and equipment 5 - 15 years
I. DEFERRED OUTFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources.
This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that apply to a
future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items
that qualify for reporting in the category and are reported only in the statements of net position. These items result from actuarial
calculations and current year pension and OPEB contributions made subsequent to the measurement date.
Based on Contract
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
J. PENSIONS
For purposes of measuring the net pension liability/asset, deferred outflows of resources, deferred inflows of resources, and pension
expense, information about the fiduciary net position of the applicable pension and additions to or deductions from the pension plan's
fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, plan contributions are
recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance
with the benefit terms. Investments are reported at fair value.
K. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net assets that apply to future periods and
so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of items, which arise under a
modified accrual basis of accounting, which qualify for reporting in this category. One item, unavailable revenue, is reported only in
the governmental funds Balance Sheet. The governmental funds report unavailable revenue from sources such as: property taxes, tax
increments, and special assessments. These amounts are deferred and recognized as an inflow of resources in the period the amounts
become available. The second item, imposed nonexchange revenue transactions, state aid, and capital funding received for subsequent
years, is deferred and recognized as an inflow of resources in the period that the resources are required to be used. This item is
reported both in the governmental fund balance sheet and the government-wide statement of Net Position as a deferred inflow of
resources. The third item results from actuarial calculations related to the City's pension and OPEB obligations.
L. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and vested
sick leave pay is accrued in the Public Employees Compensated Absences internal service fund. In accordance with the provisions of
Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, a liability is recognized for that
portion of accumulating sick leave benefits that is vested. The City pays out up to 230 hours of vacation upon seperation and one third
of accrued sick leave time.
M. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Under Minnesota Statute 471.61, subdivision 2(b), public employers must allow retirees and their dependents to continue coverage
indefinitely in an employer-sponsored health care plan, under the following conditions: 1) retirees must be receiving (or eligible to
receive) an annuity from a Minnesota public pension plan; 2) coverage must continue in group plan until age 65 and pay no more than
the group premium; and 3) retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a
pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement No. 75, at January 1, 2020. The
liability is accrued in the Public Employees Retirement internal service fund.
N. LONG TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund
type statement of net position. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using
the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs,
during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt
issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
O. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net position for proprietary funds.
Fund equity in the government-wide financial statements is classified as net position for both governmental and business-type
activities.
Fund Balance – In the fund financial statements, governmental funds report fund balance in classifications that disclose
restraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – consists of amounts that are not in spendable form or are required to be maintained intact.
Restricted – consists of amounts related to externally imposed constraints established by creditors, grantors or
contributors; or constraints imposed by state statutory provisions.
Committed – consists of internally imposed constraints. These constraints are imposed by formal action (resolution)
of the City Council, which is the highest level of decision making authority.
Assigned – consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the
City’s intended use. These constraints are established by the City Council or, pursuant to council resolution, the City
Manager or the City Manager's designee.
Unassigned – is the residual classification for the general fund and also reflects negative residual amounts in other
funds.
When both restricted and unrestricted fund balances are available for an allowable use, it is the City’s policy to use restricted
resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for
an allowable use, it is the City’s policy to use resources in the following order; 1) committed, 2) assigned, and 3) unassigned.
The City has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target unassigned fund
balance amount of 50-52% of the next year’s operating budget for cash flow needs (working capital). At December 31, 2021 the
unassigned fund balance of the General fund was 51% of the subsequent year’s budgeted expenditures.
Net Position – Net position represents the difference between assets, deferred outflows of resources, deferred inflows of
resources, and liabilities. Net position, net investment in capital assets, consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balances of any bonds used for the acquisition, construction, or improvement of those assets. Net position
is reported as restricted when there are limitations imposed on their use either through constitutional provisions or enabling
legislation, or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. All remaining
net position is reported as unrestricted.
When both restricted and unrestricted net position are available for an allowable use, it is the government’s policy to use restricted
resources first, then unrestricted resources as they are needed.
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues and expenditures or expenses. Transactions that constitute
reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other
interfund transactions are reported as transfers.
Q. USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect
amounts reported in the financial statements and accompanying notes. Actual results could differ from such estimates.
R. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board recently approved the following statements which were not implemented in these
financial statements. The effect these standards may have on future financial statements has not been determined at this time.
Statement No. 87, Leases. The goal of this statement is to better meet the information needs of users by improving accounting and
financial reporting for leases by governments. It establishes a single model for lease accounting based on the principle that leases are
financings of the right to use an underlying asset. This statement increases the usefulness of financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as
inflows of resources or outflows of resources based on the payment provisions of the contract. The statement excludes short-term
leases of 12 months (or less). The requirements of this statement are effective for reporting periods beginning after June 15, 2021.
Note 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States for all
governmental funds. All annual appropriations lapse at fiscal year end.
In September, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following
January. The proposed general fund budget and preliminary tax levy must be certified to the County prior to September 30. The
Council holds public hearings on the certified budget and levy and must submit a final levy to the County prior to the end of December.
The appropriated budget is prepared by fund and department. The City Council must authorize any transfer of budgeted amounts
between departments or funds. Transfers of budgeted amounts within departments in the General Fund must be authorized by the City
Manager. The legal level of budgetary control is the department level for the General Fund and the fund level for all other
governmental funds. There were no supplemental budgetary appropriations or amendments during the year.
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
For the year ended December 31, 2021 expenditures and transfers out exceeded appropriations in the following General Fund
departments and other governmental funds:
Final Excess of
Budget Actual Appropriations
Major Funds:
General Fund:
Mayor and council 162,790$ 176,396$ (13,606)$
Elections and voter registration 108,560 109,197 (637)
Assessing 255,500 258,175 (2,675)
Legal 435,000 477,689 (42,689)
Communications and engagement 381,859 480,343 (98,484)
Government buildings 942,289 949,291 (7,002)
Information technology 697,078 724,282 (27,204)
Fire protection 1,638,897 1,752,015 (113,118)
Protective inspection 280,547 389,981 (109,434)
Engineering department 1,112,931 1,125,936 (13,005)
Street department 1,652,086 1,734,833 (82,747)
Community services 187,000 210,488 (23,488)
Recreation programs 933,963 1,008,315 (74,352)
Community center 630,472 653,400 (22,928)
Convention bureau 237,500 349,617 (112,117)
Community development administration 267,409 278,001 (10,592)
Nondepartmental 627,790 981,670 (353,880)
Debt Service Fund 5,044,266 5,047,746 (3,480)
Capital Project Funds:
Special Assessment Construction 2,142,300 2,824,859 (682,559)
Nonmajor Funds:
Special Revenue Funds:
Police Forfeitures - 11,127 (11,127)
Centerbrook Golf Course 337,576 395,451 (57,875)
Tax Increment District No. 7 2,941 73,835 (70,894)
Tax Increment District No. 8 - 9,630 (9,630)
Capital Project Funds:
Technology 81,800 207,662 (125,862)
B. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2021 in the following funds:
Unassigned deficit fund balance
Nonmajor Funds:
Centerbrook Golf 191,101$
Tax Increment District No. 8 22,130
Unrestricted deficit net position
Internal Service Funds:
EE Retirement Benefit 2,157,279
Pension - GERF 6,374,420
Pension - PEPFF 5,657,950
The deficits are being funded through internal borrowing and will be repaid from future collections of tax increment revenues,
intergovernmental revenue, customer revenues, and internal transfers. The Internal service fund deficits will be funded through
future interfund charges, state grant revenues, and employee withholdings.
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Note 3 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks authorized by the City Council. All
such depositories are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The fair value of collateral
pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal investments
described in Note 1.D., as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota
Statutes require that securities pledged as collateral be placed in safekeeping in a restricted account at the Federal Reserve bank, or in
an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial
institution furnishing the collateral.
At year-end, the City’s carrying value and bank balance of deposits was $40.
As of December 31, 2021 the City had the following investments and maturities:
Investment Type Fair Value No maturity < 1 1 - 3 3 - 6
Negotiable certificates of deposit 16,046,249$ -$ 5,957,368$ 5,392,019$ 4,696,862$
U.S. Treasury securities 1,456,569 - - - 1,456,569
Federal agency notes 10,434,590 - 3,914,740 3,556,924 2,962,926
Municipal bonds 16,252,939 - 1,589,532 8,569,916 6,093,491
External investment pool - 4M Fund 19,932,178 19,932,178 - - -
Money market 875,957 875,957 - - -
Total Investments 64,998,482$ 20,808,135$ 11,461,640$ 17,518,859$ 15,209,848$
As of December 31, 2021, the City had the following summary of investments related to the credit risk, par values and fair
values of securities:
% of total
Investment Type Credit Risk (*) Par Fair Value Portfolio
Negotiable certificates of deposit Not rated 15,955,000$ 16,046,249$ 24.69%
U.S. Treasury securities N/A 1,500,000 1,456,569 2.24%
Federal agency notes AA 10,360,000 10,434,590 16.05%
Municipal bonds A or better 15,780,000 16,252,939 25.01%
External investment pool - 4M Fund Not rated 19,932,178 19,932,178 30.67%
Money market AAA 875,957 875,957 1.35%
Total Investments 64,403,135$ 64,998,482$ 100.00%
(*) The credit risk for the Federal Agency Notes, Municipal Bonds and Money Market ratings are provided by S&P.
Cash and investments at year-end consist of the following:
Investments 64,998,482$
Deposits 40
Petty cash and change funds 16,405
Total cash, cash equivalents, and investments 65,014,927$
The deposits and investments of the City are presented in the financial statements as follows:
Statement of Net Position
Cash and investments 65,014,927$
Investment Maturities (in years)
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices
in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to
value securities based on the securities relationship to benchmark quoted prices.
The City has the following recurring fair value measurements as of December 31, 2021:
Investment Type 12/31/2021 Level 1 Level 2 Level 3
Investments at fair value:
Negotiable certificates of deposit 16,046,249$ -$ 16,046,249$ -$
U.S. Treasury securities 1,456,569 - 1,456,569 -
Federal agency notes 10,434,590 - 10,434,590 -
Municipal bonds 16,252,939 - 16,252,939 -
Money market 875,957 875,957 - -
Total Investments 45,066,304$ 875,957$ 44,190,347$ -$
Investments at amortized cost:
External investment pool - 4M Fund 19,932,178
Total 64,998,482$
Interest rate risk – The City’s investment policy mitigates interest rate risk by structuring the investment portfolio so that securities
mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity; and by investing operating funds primarily in short-term securities. The City's policy restricts investments to investments
maturing no more than six years from the date of the purchase. No more than ten percent of the City's portfolio at any time shall be
invested in securities with maturities of more than five years. The policy also states that the portfolio shall remain sufficiently liquid to
meet all operating requirements that may be reasonably expected.
Credit risk – The City’s investment policy restricts investment instruments to those authorized by Minnesota Statutes §118A as listed in
Note 1.D. The policy also requires that any counterparty in investment transactions be pre-qualified and approved by the City Council
and that the portfolio be diversified to limit potential losses on individual securities.
Concentration of credit risk – The City’s investment policy requires that the investment portfolio be diversified to minimize potential
losses on individual securities. As of year end, the City had portfolio concentrations in excess of five percent (excluding external
investment pools) in the following federal agencies: Federal Farm Credit Bank (7.31%).
Custodial credit risk – The City’s investment policy requires that securities purchased from any bank or dealer be placed with an
independent third party for custodial safekeeping. Investments in investment pools and money markets are not evidenced by securities
that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. All of the City’s remaining
investments were held in an institutional trust under contract with the City for safekeeping services.
Fair Value Measurement Using
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2021 are as follows:
Delinquent Delinquent Due from
Property Tax Special Other Notes
Taxes Increments Assessments Governments Receivable
Major Funds:
General 145,114$ -$ 73,263$ -$ -$
Tax Increment District No. 3 - 499,752 - - -
Debt Service - - 4,160,508 - -
Capital Improvements - - 524 - -
Municipal State Aid for Construction - - - 4,333,251 -
Special Assessment Construction - - 1,676,520 - -
Nonmajor Funds
Revolving Loan - - - - 37,222
Total 145,114$ 499,752$ 5,910,815$ 4,333,251$ 37,222$
The Revolving Loan Fund received a grant from the Minnesota Investment Fund and disbursed an interest-free loan to Get Bizzy coffee
in the amount of $101,513 in 2018. It will be repaid in 60 monthly installments of $1,692 ending December 1, 2023. As the
repayments are made, the City will remit 60% to the Minnesota Department of Employment and Economic Development.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2021 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 5,632,883$ -$ -$ 5,632,883$
Easements - perpetual 88,704 - - 88,704
Construction in progress 11,469,260 7,016,084 (15,040,798) 3,444,546
Total capital assets, not being depreciated 17,190,847 7,016,084 (15,040,798) 9,166,133
Capital assets, being depreciated:
Easements - temporary 22,715 - - 22,715
Buildings and improvements 26,210,525 79,985 - 26,290,510
Land improvements 12,436,714 3,252,353 - 15,689,067
Machinery and equipment 12,304,097 1,961,438 (1,081,630) 13,183,905
Street infrastructure 64,195,933 11,722,921 - 75,918,854
Total capital assets, being depreciated 115,169,984 17,016,697 (1,081,630) 131,105,051
Less accumulated depreciation for:
Easements - temporary 22,715 - - 22,715
Buildings and improvements 17,021,746 937,300 - 17,959,046
Land improvements 6,596,078 425,266 - 7,021,344
Machinery and equipment 7,819,255 1,066,307 (996,514) 7,889,048
Street infrastructure 28,321,143 2,480,483 - 30,801,626
Total accumulated depreciation 59,780,937 4,909,356 (996,514) 63,693,779
Total capital assets being depreciated - net 55,389,047 12,107,341 (85,116) 67,411,272
Governmental activities capital assets - net 72,579,894$ 19,123,425$ (15,125,914)$ 76,577,405$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government 156,481$
Public safety 506,241
Public works 2,823,345
Parks and recreation 488,562
Economic development 7,197
Capital assets held by the City's internal service funds are
charged to the various functions based on their usage of the assets 927,530
Total depreciation expense - governmental activities 4,909,356$
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Land 2,698,879$ -$ -$ 2,698,879$
Easements - perpetual 10,285 - - 10,285
Construction in progress 11,855,805 7,867,986 (16,594,009) 3,129,782
Total capital assets, not being depreciated 14,564,969 7,867,986 (16,594,009) 5,838,946
Capital assets, being depreciated:
Easements - temporary 20,335 - - 20,335
Land improvements 570,769 - - 570,769
Buildings and improvements 45,584,023 429,418 - 46,013,441
Machinery and equipment 1,299,524 21,180 - 1,320,704
Street light systems 1,087,627 929,212 - 2,016,839
Mains and lines 93,235,910 15,293,898 - 108,529,808
Total capital assets, being depreciated 141,798,188 16,673,708 - 158,471,896
Less accumulated depreciation for:
Easements - temporary 20,335 - - 20,335
Land improvements 332,170 29,076 - 361,246
Buildings and improvements 20,763,514 1,323,390 - 22,086,904
Machinery and equipment 928,775 81,920 - 1,010,695
Street light systems 511,455 101,115 - 612,570
Mains and lines 52,558,434 3,313,075 - 55,871,509
Total accumulated depreciation 75,114,683 4,848,576 - 79,963,259
Total capital assets being depreciated - net 66,683,505 11,825,132 - 78,508,637
Business-type activities capital assets - net 81,248,474$ 19,693,118$ (16,594,009)$ 84,347,583$
Depreciation expense was charged to functions/programs of the City as follows:
Business-type activities:
Municipal liquor 119,518$
Earle Brown Heritage Center 255,079
Water utility 1,897,753
Sanitary sewer utility 1,030,919
Storm drainage utility 1,444,192
Street light utility 101,115
Total depreciation expense - business-type activities 4,848,576$
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
CONSTRUCTION COMMITMENTS
At December 31, 2021 the City had construction project contracts in progress. The commitments related to remaining contract
balances are summarized as follows:
Contract Remaining
Amount Commitment
Brooklyn Boulevard Corridor Project Phase 1 12,673,007$ 87,379$
Brooklyn Boulevard Corridor Project Phase 2 12,270,998 6,344,197
51st Avenue Frontage Road Improvements 616,510 2,501
Grandview North Area Improvements 5,074,230 183,413
Grandview South Area Improvements 8,754,418 297,617
Ryan Lake Industrial Park Area Improvements 2,362,116 305,181
Total 41,751,279$ 7,220,288$
D. INTERFUND BALANCES AND TRANSFERS
The composition of due to/from other fund balances at December 31, 2021 are as follows:
Due from Due to
Other Funds Other Funds
Major Funds:
General 199,333$ -$
Nonmajor Funds:
Centerbrook Golf Course - 186,387
Tax Increment District No. 8 - 12,946
Total 199,333$ 199,333$
Interfund due to/from balances are representative of lending/borrowing arrangements to cover deficit cash balances at the end of
the fiscal year. Balances will be paid with future tax increments, operating revenues, and/or interfund transfers.
Individual fund advances to and advances from other funds at December 31, 2021 are as follows:
Advances to Advances From
Other Funds Other Funds
Nonmajor Funds:
Tax Increment District No. 5 -$ 255,575$
Tax Increment District No. 2 255,575 -
255,575$ 255,575$
The $255,575 advance between the Tax Increment District No. 2 and the Tax Increment District No. 5 funds was made to provide
funding for a specific development project within the City. The financing plan for the Tax Increment District projects payments of
approximately $110,000 in 2019 through 2024.
Project
Fund
Fund
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The composition of interfund transfers as of December 31, 2021 are as follows:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General 108,410$ 215,000$
Tax Increment District No. 3 1,500 2,243,137
Debt Service 2,595,420 1,500
Nonmajor Funds:
Housing and Redevelopment Authority - 450,180
Economic Development Authority 450,180 -
Centerbrook Golf Course 85,000 -
Tax Increment District No. 5 - 352,283
Technology 130,000 -
Total governmental funds 3,370,510 3,262,100
Proprietary Funds:
Governmental activities: Internal Service
EE Comp Absences - 108,410
Total all funds 3,370,510$ 3,370,510$
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another
fund or to provide additional capital and infrastructure funding. In addition, interfund transfers are occasionally authorized to allow
redistribution of resources between funds for the most efficient use of funds. In 2021, the following non-routine transfers were made
between funds:
•The EE Comp Absenses Fund transferred $108,410 to the General fund to return previously levied funds for increases in
Part-Time Livable Wages during 2021.
•The Debt Service fund transferred $1,500 to Tax Increment District No. 3 upon payoff of the Tax Increment Refunding Bonds of
2015B
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
E. OPERATING LEASES
The City has leased a portion of the police second floor expansion area to the Local Government Information Systems Association
(LOGIS) as a backup computer facility. The lease has a term of ten years, commencing on January 12, 2016 and calls for monthly
lease payments based on square-footage. Lease revenue for the year ended December 31, 2021 was $12,000. Future minimum lease
revenues under the current agreement is as follows:
Year Total
Ending Minimum Rents
2022 12,000$
2023 12,000
2024 12,000
2025 12,000
48,000$
The City leased space for one of its liquor stores during 2021. The lease is ten years and began in 2013. The lease provides for a
minimum monthly base rent payment, plus a pro-rata share of common area expenses. Additional lease payments are required if
agreed-upon revenue thresholds are attained. The lease may be cancelled at the City’s option if the City ceases liquor operations. Total
rental expense under the lease agreement for the year ended December 31, 2021 was $137,698. Future minimum base rent payments
under the remaining agreement are as follows:
Year Total
Ending Minimum Rents
2022 93,360$
2023 93,360
186,720$
The City was the lessor in an operating lease for a building, known as "Building D", consisting of approximately 4,100 square feet and
located within the Earle Brown Heritage Center. The lease was originally signed January 1, 2009 with a ten year term with an option
for two renewals of five years each. The building was occupied in October of 2011 and the 10-year term began at that time. For the
year ended 2021, the City received $67,815 in rental revenue. The renewal terms have not been excercised and the lease expired at the
end of October 2021.
The City leases golf carts used at Centerbrook Golf Course. A new lease was signed May 10, 2019 with a 4 year term. Total rental
expenses under the lease agreements for the year ended December 31, 2021 was $15,307. Future minimum base rent payments under
the current agreement are as follows:
Year Total
Ending Minimum Rents
2022 12,012$
2023 12,012
24,024$
F. LONG-TERM DEBT
GOVERNMENTAL ACTIVITIES
The City issued general obligation improvement bonds to provide funds for the construction of major capital facilities and construction
of infrastructure. These bonds are reported in the governmental activities of the City.
The City issued general obligation tax increment bonds to finance various redevelopment projects and redevelopment property
acquisitions within the City. These bonds are reported in the governmental activities of the City.
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/2021
G.O. Tax Increment Bonds:
Taxable Tax Increment Bonds of 2013A 2.00 - 3.25% 12/19/2013 02/01/2022 6,040,000$ 2,195,000$
Tax Increment Bonds of 2016B 2.00 - 2.50% 12/08/2016 02/01/2029 2,075,000 2,075,000
Taxable Tax Increment Bonds of 2016C 2.00 - 2.30% 12/08/2016 02/01/2023 1,725,000 600,000
Total G.O. Tax Increment Bonds 9,840,000 4,870,000
G.O. Improvement Bonds:
Improvement Bonds, 2013B 3.00% 12/19/2013 02/01/2024 4,920,000 965,000
Improvement Bonds, 2015A 2.00 - 2.50% 07/09/2015 02/01/2026 3,416,248 1,750,502
Improvement Bonds, 2016A 2.00% 10/13/2016 02/01/2027 1,820,000 1,140,000
Improvement Bonds, 2017A 2.25 - 3.00% 06/08/2017 02/01/2028 3,735,000 2,680,000
Improvement Bonds, 2018A 3.00 - 5.00% 07/10/2018 02/01/2029 3,835,000 3,140,000
Improvement Bonds, 2019A 4.00 - 5.00% 09/12/2019 02/01/2030 3,355,000 3,180,000
Improvement Bonds, 2020A 1.00 - 2.00% 11/24/2020 02/01/2031 1,955,000 1,955,000
Improvement Bonds, 2021A 2.00 - 4.00% 09/22/2021 02/01/2032 3,005,000 3,005,000
Total G.O. Improvement Bonds 26,041,248 17,815,502
Unamortized Bond Premiums 2,316,295 1,595,587
Total - bonded indebtedness 38,197,543$ 24,281,089
Other Liabilities:
Compensated absences payable 1,342,231
Net pension liability 8,362,012
Total OPEB liability 2,679,945
Total governmental activities 36,665,277$
All long-term bonded indebtedness outstanding at December 31, 2021 is backed by the full faith and credit of the City, including
improvement and tax increment bond issues. Bonds in the governmental activities will be retired by future property tax levies, tax
increments or special assessments accumulated in the specific debt service funds. In the event that a deficiency exists because of
unpaid or delinquent taxes or special assessments at the time a debt service payment is due, the City must provide resources to cover
the deficiency until other resources are available. At the end of the current year, there are $8,971,659 of assets accumulated in the debt
service funds for future debt service. Included within those accumulated assets, there was $4,167,403 of special assessments receivable.
Annual debt service requirements to maturity for governmental activities long-term debt are as follows:
G.O. Tax Increment Bonds G.O. Improvement Bonds
Principal Interest Principal Interest
2,490,000$ 92,680$ 2,042,277$ 532,954$
305,000 50,333 2,265,537 474,538
330,000 43,525 2,333,796 395,484
335,000 36,875 2,170,316 316,493
340,000 29,700 2,213,576 238,495
1,070,000 40,063 6,465,000 385,206
- - 325,000 3,250
4,870,000$ 293,176$ 17,815,502$ 2,346,420$
2026
Total
2032
2027-2031
Governmental Activities
Year Ending
December 31
2022
2023
2024
2025
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
BUSINESS-TYPE ACTIVITIES
The City issued general obligation revenue bonds to finance the metering of all City connected water and sewer utility services in
2010 which were refunded in 2015. The City also issued general obligation revenue bonds in 2015, 2016, 2017, 2018, 2019, 2020
and 2021 for utility portions of infrastructure improvement projects and a Revenue Note financed by the MN Public Facilities
Authority Drinking Water State Revolving Fund for the construction of a new water treatment plant. In 2019 the City issued Lease
Revenue Bonds for the construction of a City-owned municipal liquor store. These bonds are reported in the business-type activities
of the City.
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/2021
G.O. Improvement Bonds:
Improvement Bonds, 2015A 2.00 - 2.50% 07/09/2015 02/01/2026 1,823,752$ 934,498$
G.O. Lease Revenue Bonds:
Lease Revenue Bonds of 2019B 3.00 - 4.00% 09/18/2019 02/01/2035 2,520,000 2,420,000
General Obligation Taxable Utility Revenue Bonds:
Revenue Refunding Bonds of 2015A 2.00 - 2.50% 07/09/2015 02/01/2026 1,660,000 695,000
Revenue Bonds of 2016A 2.00% 10/13/2016 02/01/2027 3,605,000 2,265,000
Revenue Bonds of 2017A 2.25 - 3.00% 06/08/2017 02/01/2028 4,625,000 3,380,000
Revenue Bonds of 2018A 3.00 - 5.00% 07/10/2018 02/01/2029 4,350,000 3,635,000
Revenue Bonds of 2019A 4.00 - 5.00% 09/12/2019 02/01/2030 4,790,000 4,540,000
Revenue Bonds of 2020A 1.00 - 2.00% 11/24/2020 02/01/2031 2,830,000 2,830,000
Revenue Bonds of 2021A 2.00 - 4.00% 09/22/2021 02/01/2032 5,005,000 5,005,000
Total General Obligation Taxable Utility Revenue Bonds 26,865,000 22,350,000
General Obligation Taxable Utility Revenue Notes:
PFA Revenue Note of 2015 1.00% 01/20/2015 08/20/2034 19,622,797 13,799,445
Unamortized Bond Premiums 2,667,281 2,303,519
Total business-type activities 53,498,830$ 41,807,462$
Annual debt service requirements to maturity for business-type activities long-term debt are as follows:
G.O. Improvement Bonds
Principal Interest Principal Interest
182,723$ 19,234$ 135,000$ 78,900$
184,463 15,562 140,000 73,400
186,204 11,623 145,000 67,700
189,684 7,157 155,000 61,700
191,424 2,393 160,000 55,400
- - 875,000 189,450
- - 810,000 49,350
934,498$ 55,969$ 2,420,000$ 575,900$
Year Ending
December 31
2022
2023
2024
2025
2026
2027-2031
2032-2035
Business-Type Activities
G.O. Lease Revenue Bonds
Total
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
G.O. Revenue Bonds
Principal Interest Principal Interest
1,965,000$ 674,575$ 1,002,000$ 138,390$
2,405,000 622,869 1,012,000 128,370
2,550,000 536,525 1,022,000 118,250
2,625,000 445,356 1,033,000 108,030
2,650,000 349,956 1,043,000 97,700
9,575,000 601,597 5,373,000 329,960
580,000 5,800 3,314,445 67,300
22,350,000$ 3,236,678$ 13,799,445$ 988,000$
The utility revenue bonds, lease revenue bonds, and notes are backed by the full faith and credit of the City. Bonds and Notes in the
business-type activities will be retired with the net revenues of the Liquor fund, Water Utility, Sanitary Sewer Utility, and Storm
Drainage Utility systems. (Net revenues of each system are defined as the excess of gross revenues and earnings over the normal,
reasonable, and current costs of operating and maintaining the system.) In the event that a deficiency exists because of inadequate net
revenues at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources are
available. For the year ended December 31, 2021, the liquor, water, sewer, and storm utility funds provided net revenues of $16,701,
which accounts for a debt-service coverage ratio of 0.45% on principal and interest payments of $3,750,915.
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2021 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O. tax increment bonds 7,300,000$ -$ (2,430,000)$ 4,870,000$ 2,490,000$
G.O. improvement bonds 16,739,519 3,005,000 (1,929,017) 17,815,502 2,042,277
Premium 1,405,244 346,257 (155,914) 1,595,587 -
Total bonds payable 25,444,763 3,351,257 (4,514,931) 24,281,089 4,532,277
Compensated absences 1,552,660 404,137 (614,566) 1,342,231 134,223
Net Pension liability:
GERF 7,434,368 5,177,183 (7,461,391) 5,150,160 -
PEPFF 5,806,261 7,401,928 (9,996,337) 3,211,852 -
Total OPEB liability 2,451,494 269,048 (40,597) 2,679,945 150,986
Total government activity
long-term liabilities 42,689,546$ 16,603,553$ (22,627,822)$ 36,665,277$ 4,817,486$
Business-type activities:
Bonds payable:
G.O. improvement bonds 1,115,481$ -$ (180,983)$ 934,498$ 182,723$
G.O. lease revenue bonds 2,520,000 - (100,000) 2,420,000 135,000
G.O. revenue bonds 18,905,000 5,005,000 (1,560,000) 22,350,000 1,965,000
G.O. revenue notes 14,791,445 - (992,000) 13,799,445 1,002,000
Premium 1,917,557 576,119 (190,157) 2,303,519 -
Total business-type activity
long-term liabilities 39,249,483$ 5,581,119$ (3,023,140)$ 41,807,462$ 3,284,723$
Compensated absences are liquidated by the Public Employees Compensated Absences internal service fund and the total OPEB
liability by the Public Employees Retirement internal service fund. Net pension liabilities will be liquidated by the Pension - GERF
and Pension - PEPFF internal service funds.
G.O. Revenue Notes
Business-Type Activities
Year Ending
2023
2024
Total
2025
2026
2027-2031
2032-2035
December 31
2022
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds or Notes to provide assistance to
qualified private sector entities for the acquisition and construction of housing, industrial, or commercial facilities deemed to be in the
public interest. The bonds or notes are secured by the property financed and are payable solely from payments received on the
underlying mortgage loans. The City has no obligation of its assets or of its general tax base for the repayment of any of these bonds or
notes. Accordingly, the bonds or notes are not reported as liabilities in the accompanying financial statements. Upon final redemption
of the bonds or notes, ownership of the property transfers to the private sector entity served by the bond or note issue.
As of December 31, 2021 there were two series of fixed rate Multifamily Housing Revenue Refunding bonds, one Housing Revenue
Development Refinancing Note, two Healthcare Revenue Notes, four Senior Housing Development Revenue Notes, three Multifamily
Housing Revenue bonds, one Multifamily Housing Revenue Note, and four Charter School Lease Revenue bonds outstanding. The
aggregate amount of conduit debt as of December 31, 2021 is $93,720,730.
G. FUND EQUITY
Net position reported in the government-wide statement of net position at December 31, 2021 include the following:
Governmental activities
Net investment in capital assets:
Cost of capital assets 140,271,184$
Less: accumulated depreciation (63,693,779)
Less: related long-term debt outstanding (19,377,158)
Add: unspent bond proceeds 324,161
Total net investment in capital assets 57,524,408
Restricted:
Statutory housing obligation 342,740
Tax increment financing 28,667,342
Economic development 1,910,507
Law enforcement enhancements 67,249
Debt service 8,686,697
Pension benefits 897,830
State-aid Street Systems 1,956,119
Total restricted 42,528,484
Unrestricted 10,698,650
Total governmental activities net position 110,751,542$
Related debt for governmental activities capital assets includes $17,815,502 in G.O. Improvement Bonds and $1,561,656 of premium
which was the amount issued to finance the street portion of construction projects.
Business-type activities
Net investment in capital assets:
Cost of capital assets 164,310,842$
Less: accumulated depreciation (79,963,259)
Less: related long-term debt outstanding (41,087,440)
Add: unspent bond proceeds 1,080,196
Total net investment in capital assets 44,340,339
Unrestricted 13,329,034
Total business-type activities net position 57,669,373$
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Aggregated fund balances reported in the governmental funds balance sheet at December 31, 2021 include the following:
Governmental funds
Nonspendable Restricted Committed Assigned
General
Inventories 38,575$ -$ -$ -$
Prepaid Items 30,577 - - -
Tax Increment District No. 3
Statutory Housing Obligation - 342,740 - -
Tax Increment Financing - 25,872,178 - -
Debt Service
Debt Service - 4,809,151 - -
Capital Improvements
Capital Improvements - - 2,578,668 -
Municipal State-Aid for Construction
State-Aid street systems - 1,956,119 - -
Special Assessment Construction
Capital Improvements - - - 466,716
Street Reconstruction Fund
Street Improvements - 324,161 4,730,404 -
Nonmajor Funds
Centerbrook Golf Course 4,374 - - -
Tax Increment Financing - 2,295,412 - -
Economic Development - 1,910,507 - -
Law Enforcement Enhancements - 67,249 - -
Public Safety - - 7,465 -
Cable Communications - - 159,354 -
Community Recreation - - 89,430 -
Emergency Capital Improvements - - 1,169,273 -
Technology Improvements - - 268,229 -
Total fund balances 73,526$ 37,577,517$ 9,002,823$ 466,716$
Note 4 DEFINED BENEFIT PENSION PLAN - CITY EMPLOYEES
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public
Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under
Section 401(a) of the Internal Revenue Code.
1. GENERAL EMPLOYEES RETIREMENT FUND (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. GERF members belong to the Coordinated
Plan. Coordinated Plan members are covered by Social Security.
2. PUBLIC EMPLOYEES POLICE AND FIRE FUND (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all
police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters
belonging to a local fire relief association that elected to merge with and transfer assets and administration to PERA.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified
by the state legislature.
Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the
time they last terminated their public service.
1. GERF BENEFITS
General Employees Plan benefits are based on a member’s highest average salary for any five successive years of allowable service,
age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members.
Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members
hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2 percent for each of the first 10 years of
service and 1.7 percent for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7 percent for all
years of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and
normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social
Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the
cost-of-living adjustment (COLA) announced by the Social Security Administration (SSA), with a minimum increase of at least 1
percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June
30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least
one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to
July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay
to normal retirement.
2. PEPFF BENEFITS
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50 percent
after five years up to 100 percent after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014,
vest on a prorated basis from 50 percent after ten years of service up to 100 percent after twenty years of credited service. The
annuity accrual rate is 3 percent of average salary for each year of service. A full annuity is available for Police and Fire Plan
members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. Recipients that
have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will
receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June
30 before the effective date of the increase will receive a reduced prorated increase.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by
the state legislature.
1. GERF CONTRIBUTIONS
Coordinated Plan members were required to contribute 6.5 percent of their annual covered salary in calendar year 2021. The City
was required to contribute 7.5 percent for Coordinated Plan members in calendar year 2021. The City's contributions to the GERF
for year ended December 31, 2021 were $673,181. The City's contributions were equal to the required contributions as set by state
statute.
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
2. PEPFF CONTRIBUTIONS
Police and Fire members were required to contribute 11.8 percent of their annual covered salary in calendar year 2021. The City was
required to contribute 17.70 percent for Police and Fire members in calendar year 2021. The City's contributions to the PEPFF were
$832,803. The City's contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
The City reported amounts for pension expense in the statement of activities, as well as deferred outflows, deferred inflows, and
net pension liability in the statement of net position associated with various plans as follows:
Pension Deferred Deferred Net Pension
Pension Plan Expense Outflows Inflows Liability
PERA - GERF 43,026$ 3,653,683$ 4,877,943$ 5,150,160$
PERA - PEPFF (251,359) 5,883,897 8,329,995 3,211,852
PERA - PEDCP 1,655 - - -
Fire Relief Association (131,829) 236,303 410,627 -
Central Pension Fund 53,695 - - -
Total (284,812)$ 9,773,883$ 13,618,565$ 8,362,012$
1. GERF PENSION COSTS
At December 31, 2021, the City reported a liability of $5,150,160 for its proportionate share of the GERF's net pension liability. The
City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16.0 million to the fund in 2021.
The State of Minnesota is considered a nonemployer contributing entity and their contribution meets the definition of a special
funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $157,297.
The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30,
2021, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share
was 0.1206 percent at the end of the measurement period and 0.1240 percent for the beginning of the period.
The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net
pension liability that was associated with the City were as follows;
City's Proportionate share of the net pension liability $5,150,160
State's proportionate share of the net pension liability associated with the City $157,297
For the year ended December 31, 2021, the City recognized pension expense of $432,677 for its proportionate share of the
GERF's pension expense. In addition, the City recognized an additional $12,691 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota's contribution of $16 million to the GERF. Adjustments for deferred inflows and
outflows dereased the total amount reported across governmental activities to $43,026.
73
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
At December 31, 2021, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 31,195$ 158,123$
Changes in actuarial assumptions 3,144,581 115,607
Net collective differences between projected and actual investment earnings - 4,444,394
Changes in proportion 140,984 159,819
GERF contributions paid subsequent to the measurement date 336,923 -
Totals 3,653,683$ 4,877,943$
$336,923 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year Pension
Ended Expense
December 31,Amount
2022 (204,092)$
2023 (54,388)
2024 (86,155)
2025 (1,216,548)
Total (1,561,183)$
2. PEPFF PENSION COSTS
At December 31, 2021, the City reported a liability of $3,211,852 for its proportionate share of the PEPFF's net pension liability.
The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability
was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30,
2021, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share
was 0.4161 percent at the end of the measurement period and 0.4405 percent for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2021. The
contribution consisted of $9.0 million in direct state aid that does meet the definition of a special funding situation and $9.0 million
in supplemental state aid that does not meet the definition of a special funding situation. The $9.0 million direct state was paid on
October 1, 2020. By October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or
July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until
the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. Strong asset
returns for the fiscal year ended 2021 will accelerate the phasing out of these state contributions, although we do not anticipate them
to be phased out during the fiscal year ending 2022.
74
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of
Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules)
for the $9.0 million in direct state aid. The State of Minnesota's proportionate share of the net pension liability associated with the
City totaled $144,394. Police and Fire Plan employers need to recognize their porportionate share of the State of Minnesota's
pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For
the year ended December 31, 2021 the City recognized pension expense of $159,841 for its proportionate share of the Police and
Fire Plan's pension expense. Adjustment for deferred inflows and outflows adjusted this amount reported to public safety activities to
a negative $251,359. The City recognized $37,449 as grant revenue for its proportionate share of the State of Minnesota's pension
expense for the contribution of $9.0 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation
schedules for the $9 million in supplemental state aid. The City recognized $26,296 for the year ended December 31, 2021 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
At December 31, 2021, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred
inflows of resources related to pension from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 626,910$ -$
Changes in actuarial assumptions 4,720,581 1,869,814
Net collective differences between projected and actual investment earnings - 6,100,738
Changes in proportion 161,803 359,443
PEPFF contributions paid subsequent to the measurement date 374,603 -
Totals 5,883,897$ 8,329,995$
$374,603 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year Pension
Ended Expense
December 31,Amount
2022 (2,226,372)$
2023 (444,847)
2024 (427,371)
2025 (701,940)
2026 979,829
Total (2,820,701)$
75
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
E. LONG-TERM EXPECTED RETURN ON INVESTMENT
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term
expected rate of return on a regular basis using a building-block method in which best-estimate ranges of expected future rates of
return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by
weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Long-Term
Target Expected Real
Allocation Rate of Return
Domestic Equity 33.50% 5.10%
International Equity 16.50% 5.30%
Fixed Income 25.00% 0.75%
Private Markets 25.00% 5.90%
Total 100.00%
F. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual entry-age normal actuarial cost
method. The long-term rate of return on pension plan investments used in the determination of the total liability is 6.5 percent. This
assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting
firms. The review provided a range of return investment return rates deemed to be reasonable by the actuary. An investment return of
6.5 percent was deemed to be within that range of reasonableness for financial reporting purposes.
Inflation is assumed to be 2.25 percent for the General Employees Plan and 2.25 percent for the Police and Fire Plan. Benefit
increases after retirement are assumed to be 1.25 percent for the General Employees Plan. The Police and Fire Plan benefit increase
is fixed at 1 percent per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25 percent after one year of service to
3.0 percent after 29 years of service and 6.0 percent per year thereafter. In the Police and Fire Plan, salary growth assumptions range
from 11.75 percent after one year of service to 3.0 percent after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for
the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit
PERA's experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent four-year experience study
for the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and became effective
with the July 1, 2020 actuarial valuation. The most recent four-year experience study for the Police and Fire Plan was compleded in
2020, adopted by the Board and became effective with the July 1, 2021 actuarial valuation
The following changes in actuarial assumptions and plan provisions occurred in 2021:
General Employees Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes.
• The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
Asset Class
76
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Police and Fire Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial
reporting purposes
• The inflation assumption was changed from 2.50 percent to 2.25 percent
• The payroll growth assumption was changed from 3.25 percent to 3.00 percent.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the
Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020.
• The base mortality for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table
(with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disable annuitant
mortality table (with future mortality improvement according to Scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall
impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes
result in slightly more unreduced retirements and fewer assumed early retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes
result in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates
result in more projected disabilities.
• Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to
form of payment assumptions were applied.
G. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.5%. The projection of cash flows used to determine the discount
rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on these assumptions, the
fiduciary net positions of the General Employees Fund and the Police and Fire Fund was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
H. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the
discount rates disclosed in the preceding paragraphs, as well as what the City's proportionate share of the net pension liability would
be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rates:
1% Lower 5.50% 10,503,698$ 5.50% 10,197,084$
Current Discount Rate 6.50% 5,150,160 6.50% 3,211,852
1% Higher 7.50% 757,256 7.50% (2,514,309)
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that
includes financial statements and required supplementary information. That report may be obtained by:
Internet:www.mnpera.org
Phone:(651) 296-7460
Mail:60 Empire Drive, #200
St. Paul, MN 55103-2088
General Employees Fund Police and Fire Fund
Sensitivity of Net Pension Liability
77
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Note 5 DEFINED BENEFIT PENSION PLAN - SINGLE EMPLOYER - FIRE RELIEF ASSOCIATION
A. PLAN DESCRIPTION
The City contributes to the Brooklyn Center Fire Department Relief Association (the Association) which is the administrator of a
single employer, public employee defined benefit retirement system to provide a retirement plan (the Plan) to volunteer firefighters of
the City who are members of the Association. The Association is organized and operates under the provisions of Minnesota State
Statutes 424A, and provides benefits in accordance with those statutes.
At December 31, 2020, the membership of the Association consisted of:
Retirees and beneficiaries currently receiving benefits 13
Terminated employees entitled to benefits but not yet receiving them 14
Active plan participants - vested 6
Active plan participants - non-vested 25
Total 58
The Association issues a financial report that includes financial statements and required supplementary information for the Brooklyn
Center Fire Department Relief Association. That report is available at the City of Brooklyn Center City offices.
B. BENEFITS PROVIDED
Basic Service Pension for Retired Members - Upon retirement each individual will receive a lump sum distribution of $10,000 per year
of service. This benefit level was placed into effect on June 28, 2021. Prior to 1998, a monthly benefit level of $26.50 was
available for retirees. The monthly benefit is no longer an option for retiring members. Vested, terminated members, who are entitled
to benefits but are not yet receiving them, are bound by the provisions in effect at the time of termination from membership.
Basic Service Pension for Deferred Pensioner - A member who is otherwise qualified for a service pension but who has not reached
the age of 50 years may retire from the Fire Department without forfeiting the member's right to such pension. Upon approval of an
application therefore, the deferred pensioner shall receive a pension based on the benefit level at that time multiplied by such person's
years of active service with the Fire Department and further multiplied by the decimal equivalent of the applicable percentage
determined from the following table:
Years of Service Applicable Percentage
10 60%
11 64
12 68
13 72
14 76
15 80
16 84
17 88
18 92
19 96
20 and beyond 100
C. FUNDING POLICY
The City levies property taxes at the direction of and for the benefit of the Plan and passes through state aids allocated to the Plan, all
in accordance with enabling State statutes. The minimum tax levy obligation is the financial contribution requirement for the year less
anticipated state aids.
78
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
D. CONTRIBUTIONS
Authority for contributions to the pension plan is established by Minn. Stat. § 69.77 and may be amended only by the Minnesota State
Legislature. See 2018 Minn. Laws, ch. 111, art. 5, § 31 to 42 and 80. There are no employee contributions. The City provided no
statutory contributions in 2021. The actuary compares the actual statutory contribution rate to a "required" contribution rate. The
required contribution rate consists of: (a) normal costs based on entry age normal cost methods, (b) a supplemental contribution for
amortizing any unfunded actuarial accrued liability, and (c) an allowance for administrative expenses.
E. PENSION COSTS
At December 31, 2021, the City reported an asset of $1,072,154 for the difference between the Fire Relief Plan Fiduciary net position
and the total pension liability. The net pension asset was measured as of December 31, 2020, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of that date.
Changes in Net Pension Asset
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Balance at 12/31/20 2,755,638$ 3,703,161$ (947,523)$
Changes for the year
Service cost 112,974 - 112,974
Interest 136,948 - 136,948
Differences in experiences (17,492) - (17,492)
Changes of assumptions 5,863 - 5,863
Contributions - State and local - 180,079 (180,079)
Net investment income - 199,905 (199,905)
Benefit payments (520,165) (520,165) -
Administrative expenses - (17,060) 17,060
Net changes (281,872) (157,241) (124,631)
Balance at 12/31/21 2,473,766$ 3,545,920$ (1,072,154)$
The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2018 Minnesota PERA Police & Fire Plan
actuarial valuation to the rates used in the July 1, 2020 Minnesota PERA Police & Fire Plan actuarial valuation. The inflation assumption
decreased from 2.50% to 2.25% based on an updated historical analysis of inflation rates and forward-looking market expectations.
At December 31, 2021, the City reported deferred outflows of resources, and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions 48,506$ 8,746$
Difference between expected and actual liability - 111,353
Difference between projected and actual investment earnings - 102,731
Contribution paid subsequent to measurement date 187,797 187,797
Totals 236,303$ 410,627$
$187,797 reported as deferred outflows of resources related to pensions resulting from state aid received subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2022. Deferred
inflows of resources totaling $187,797 related to state aid received subsequent to the measurement date will be recognized for its
impact on the net pension liability in the year ended December 31, 2022.
Increase (Decrease)
79
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Pension
Ended Expense
December 31,Amount
2022 (72,842)$
2023 8,957
2024 (85,524)
2025 (17,549)
2026 (4,659)
Thereafter (2,707)
Total (174,324)$
F. ACTUARIAL ASSUMPTIONS
The Association is funded with contributions from the City of Brooklyn Center. The actuarially determined contributions in the
Schedule of Contributions are calculated as of the beginning of the fiscal year in which contributions were reported.
The following methods and assumptions were used to calculate the actuarially determined contributions reported in the most recent
fiscal year end.
• The most recent actuarial valuation date is December 31. 2020.
• Actuarial cost is determined using the Entry Age Normal Cost Method.
• The actuarial value of assets is fair value.
• The unfunded accrued liability is amortized using a 20-year rolling end date.
• Investment rate of return is 5.25 percent.
• The inflation rate assumption is 2.25 percent.
• Mortality assumptions for pre-retirement, post-retirement, and post-disability are:
Pre-retirement:RP-2014 employee generational mortality table projected
with mortality improvement scale MP-2019, from a base year
of 2006.
Post-retirement:RP-2014 annuitant generational mortality table projected
with mortality improvement scale MP-2019 from a base year of
2006. Male rates are adjusted by a factor of .96.
Post-disability:RP-2014 annuitant generational mortality table projected
with mortality improvement scale MP-2019 from a base year of
2006. Male rates are adjusted by a factor of .96.
80
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
The long-term expected rate of return on pension plan investments was determined using a building-block method in which
best-estimates of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These asset class estimates are combined to produce the portfolio long-term expected rate of
return by weighting the expected future real rates of return by the current asset allocation percentage (or target allocation, if available)
and by adding expected inflation.
Best-estimates of geometric real and nominal rates of return for each major asset class included in the pension plan's asset allocation as
of the measurement date are summarized in the following table:
Long-term Long-Term
Allocation at Expected Real Expected Nominal
Measurement Date Rate of Return Rate of Return
Domestic Equity 45.00%4.90% 7.15%
International Equity 15.00%5.32% 7.57%
Fixed Income 35.00%1.40% 3.65%
Real Estate and Alternatives 0.00%4.43% 6.68%
Cash and Equivalents 5.00%0.09% 2.34%
Total 100.00%6.48%
Reduced for assumed investment expense -1.30%
Net assumed investment return (weighted average rounded to 1/4%)5.25%
G. DISCOUNT RATE
The discount rate used to measure the total pension liability was 5.25 percent. The projection of cash flows used to determine the
discount rate assumed that City contributions will be made at the actual statutory contribution rate. Based on those assumptions, the
Association's fiduciary net position was projected to be available to make all projected future benefit payments of the current plan
members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
H. PENSION LIABILITY (ASSET) SENSITIVITY
The following presents the net pension asset calculated using the discount rate of 5.25 percent, as well as what the net pension
(asset)/liability would be if it were calculated using a discount rate that is one-percentage-point lower (4.25 percent) or one
percentage- point higher (6.25 percent) than the current rate:
4.25% 5.25% 6.25%
One Point Current One Point
Decrease Rate Increase
Net Pension (Asset)/Liability (982,649)$ (1,072,154)$ (1,156,189)$
of the Net Pension (Asset) Liability
Asset Class
City's Proportionate Share
81
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Note 6 MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN
City employees belonging to International Union of Operating Engineers (IUOE) are participants in a multiple-employer defined
benefit pension plan Central Pension Fund of the International Union of Operating Engineers and Participating Employers (CPF)
administered by the Board of Trustees of the Central Pension Fund. The plan is a cost-sharing pension plan that is not a state or local
governmental pension plan, is used to provide defined benefit pensions both to employers that are not state or local governmental
employers, and has no predominant state or local government employer. The Plan issues a publicly available financial report located on
their website at www.cpfiuoe.org.
The City has 26 employees who are covered by this pension plan. The plan provides benefits such as monthly retirement income,
special and early retirement benefits, post-retirement surviving spouse benefits, pre-retirement surviving spouse benefits, and disability
benefits. The CPF is a supplemental Pension Fund authorized by Minnesota Statutes, 356.24, subdivision 1(9). The CPF Plan of
Benefits and the Agreement and Declaration of Trust will serve as the governing documents.
The City's contributions to the plan are pursuant to a collective bargaining agreement with the IUOE which expires December 31,
2021. The required contribution rate is $0.96 per hour, which is applied to all compensated hours, and capped at $5,000 per year.
Total employer contributions for the year ended December 31, 2021 were $53,695. With regard to withdrawal from the pension plan,
the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pre-tax
employer contributions.
Note 7 DEFINED CONTRIBUTION PLAN
There are five City Council members of the City covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the
Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
The defined contribution plan consists of individual accounts paying a lump-sum benefit, plan benefits depend solely on amounts
contributed to the plan plus investment earnings, less administrative expenses, therefore, there is no future liability to the employer.
Minnesota Statutes, Chapter 353(D.03), specifies plan provisions, including the employee and employer contribution rates for those
qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent of salary
which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares
in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2
percent of employer contributions and twenty-five hundredths of 1 percent (.0025%) of the assets in each member's account annually.
Pension expense for the year is equal to contributions made. Total contributions made by the City during fiscal year 2021 were:
For the Year Ended: Employee Employer Employee Employer Employee Employer
1,655$ 1,655$ 5.0% 5.0%5.0%5.0%December 31, 2021
Required Rate for Employees &
Employers Percentage of Covered PayrollContribution Amount
82
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
Note 8 OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides post-employment insurance benefits to certain eligible employees through its OPEB Plan, a single-employer
defined benefit plan administered by the City. All post-employment benefits are based on contractual agreements with employee
groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do
not include any specific contribution or funding requirements. The plan does not issue a publicly available financial report. No plan
assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
B. Benefits Provided
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the
individual terminates service with the City through service retirement or disability retirement. Former employees who are receiving,
or who have met age and service requirements to receive, an annuity from a Minnesota public pension plan and those receiving a
disability benefit from such a plan are immediately eligible to participate in this Plan. Retirees may obtain dependent coverage if the
employee received dependent coverage immediately before leaving employment. Covered spouses may continue coverage after the
death of a retiree. In addition, the surviving spouse of an active employee may continue coverage in the group health insurance plan
after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay the premium as
described below:
Employees hired before January 1, 1992 with continuous full-time employment
Employees who, on the date of their retirement, meet eligibility requirement for a full retirement annuity under PERA or PERA
Police without reduction of benefits because of age, disability, or any other reason for reduction shall be eligible for the City to pay
100% of the single-person premium until such time as the retiree is eligible for Medicare or at age 65, whichever is sooner. If the
retiree desires to continue coverage in excess of single coverage, the additional cost for the coverage shall be paid to the City by the
retiree on a monthly basis.
Employees hired after January 1, 1992
The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they
participate.
The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees
exceed the blended premium paid by retirees, they are receiving an implicit rate subsidy (benefit). The coverage levels are the same
as those afforded to active employees.
Disabled police and firefighter
The City is required to continue to pay the employer’s contribution toward health coverage for police or firefighters disabled in the
line of duty per Minnesota Statute 299A.465, until age 65. Dependent coverage is included, if the dependents were covered at the
time of the disability.
C. Contributions
The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as
determined periodically by the City. The City’s current year required pay-as-you-go contributions to finance the benefits described in
the previous section totaled $150,986.
83
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation
Retirees and beneficiaries receiving benefits 14
Active plan members 163
Total members 177
E. Total OPEB Liability of the City
The City’s total OPEB liability of $2,679,945 as of year-end was measured as of December 31, 2020, and was determined by an
actuarial valuation as of January 1, 2020.
F. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the following actuarial assumptions,
applied to all periods included in the measurement, unless otherwise specified:
Discount rate 2.12%
20-year municipal bond yield 2.12%
Inflation rate 2.00%
Salary increases 3.25%
Medical trend rate 7.33% grading to 5.00% over 7 years
The actuarial assumptions used in the latest valuation were based on those used to value pension liabilities for Minnesota city
employees. The state pension plans base their assumptions on periodic experience studies. Economic assumptions are based on input
from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness
with the source information as well as for consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield rate of 2.12
percent, which was set by considering published rate information for 20-year high quality, tax-exempt, general obligation municipal
bonds as of the measurement date. The City discount rate used in the prior measurement date was 2.74 percent.
Mortality rates were based on the RP-2014 White Collar Mortality Tables with MP-2018 Generational Improvement Scale (with
Blue Collar adjustment for Police and Fire Personnel). The mortality rates used in the previous study were based on the RP-2014
adjusted to 2006 White Collar Mortality Tables with MP-2016 Generational Improvement Scale (Blue Collar Tables for Police and
Fire Personnel). Medical trend rates were also changed from the previous study to better anticipate short-term and long-term medical
increases.
Future retirees electing coverage is assumed to be 65 percent for employees. Spouses of Coordinated Plan participants is assumed to
be 40% electing coverage and spouses of Police & Fire Fund participants is assumed to be 60%.
84
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2021 2,451,494$
Changes for the year
Service cost 144,086
Interest 69,311
Differences between expected and actual experience 16,844
Changes of assumptions 130,147
Benefit payments (131,937)
Total net changes 228,451
Ending balance – December 31, 2021 2,679,945$
Assumption changes since the prior measurement date include the following:
• The discount rate was changed from 2.74 percent to 2.12 percent.
H. Total OPEB Liability Sensitivity to Discount and Health-Care Trend Rate Changes
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate:
Current
1% Decrease Discount Rate 1% Increase
OPEB Discount Rate 1.12%2.12% 3.12%
Total OPEB Liability 2,940,872$ 2,679,945$ 2,448,001$
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were
calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current
healthcare cost trend rates:
Current Medical
1% Decrease Trend Rate 1% Increase
Medical Trend Rate 6.33 to 4.00% 7.33 to 5.00% 8.33 to 6.00%
over 7 years over 7 years over 7 years
Total OPEB Liability 2,345,849$ 2,679,945$ 3,082,651$
85
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows of Resources
For the current year ended, the City recognized OPEB expense of $269,048. As of year-end, the City reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions 366,722$ 71,188$
Difference between expected and actual economic experience 123,293 -
Contribution paid subsequent to measurement date 150,986 -
Totals 641,001$ 71,188$
A total of $150,986 reported as defered outflows of resources related to OPEB resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2022.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year OPEB
Ended Expense
December 31,Amount
2022 55,651$
2023 55,651
2024 55,651
2025 55,651
2026 55,651
Thereafter 140,572
Total 418,827$
Note 9 OTHER INFORMATION
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions and
natural disasters.
Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool
currently operating as a common risk management and insurance program for Minnesota cities: general liability, property, automobile,
mobile property and marine, crime, employee dishonesty, boiler, and open meeting law. The City pays an annual insurance premium to
the LMCIT for its insurance coverage. The City is subject to supplemental assessments if deemed necessary by the LMCIT. Currently,
the LMCIT is self-sustaining through member premiums and reinsures through commercial companies for claims in excess of various
amounts. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is considered
immaterial to the financial statements.
Workers’ compensation coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an annual
premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures
through Workers’ Compensation Reinsurance Association (WCRA) as required by law. For workers’ compensation, the City is not
subject to a deductible. The City’s workers’ compensation is retroactively rated. With this type of coverage, final premiums are
determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until
received or paid.
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2021
There were no significant changes in insurance from the previous year or settlements in excess of insurance coverage for any of the past
three years.
B. ARBITRAGE REBATE
The Tax Reform Act of 1986 requires governmental entities to pay to the federal government income earned on the proceeds from the
issuance of debt in excess of interest costs, pending the expenditure of the borrowed funds. This rebate of interest income (known as
arbitrage) applies to governmental debt issued after August 31, 1986. The City issued greater than $5 million of bonds in subsequent
years and therefore is required to rebate excess investment income relating to these issues to the federal government. The extent of the
City’s liability for arbitrage rebates on the remaining bond issues is not determinable at this time. However, in the opinion of
management, any such liability would be immaterial.
C. LITIGATION
The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution of these claims
will have a material impact on the City’s financial condition or results of operations.
The City is exposed to a liability resulting from an Officer involved shooting that received national media attention in April 2021.
Potential settlement with the victim's family cannot be estimated at this time and no potential liabilities have been recorded as of year
end.
D. JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
The City has several agreements with other entities that provide reduced costs, better service, and additional benefits to the
participants. The programs in which the City participates are listed below and amounts recorded within the current year’s financial
statements are disclosed.
Local Government Information Systems Association (LOGIS)
This consortium of approximately 30 government entities provides computerized data processing and support services to its members.
LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is fiscally independent of the
City. The total amount recorded within the 2021 financial statements of the City is $782,219 for general services and application
upgrades provided. Costs were allocated to the various funds based on applications and/or use of services. Complete financial
statements for LOGIS may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422.
LOGIS Insurance Group
This group provides cooperative purchasing of health and life insurance benefits for approximately 45 governmental entities. The total
of 2021 health and life insurance costs paid by the City was $1,997,186. Complete financial statements may be obtained from
Gallagher Benefit Services, Inc. located at 3600 American Blvd West, Bloomington, MN 55431.
The Brooklyn Center Fire Department Relief Association (the Association)
The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide pension and other
benefits to members in accordance with Minnesota Statutes. Its board of directors is elected by the membership of the Association and
not by the City Council. The Association issues its own set of financial statements. All funding is conducted in accordance with
applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association and are only
reviewed by the City. The Association pays benefits directly to its members. The Association may certify tax levies to Hennepin
County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial
information of the Association has not been included within the City’s financial statements. (See Note 5 for disclosures relating to the
pension plan operated by the Association.) Complete financial statements for the Association may be obtained at the City offices
located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
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CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
For the Year Ended December 31, 2021
2021 2020 2019 2018
Total OPEB liability
Service cost 144,086$ 114,736$ 143,059$ 130,096$
Interest 69,311 85,818 71,986 71,659
Differences between expected and actual experience 16,844 45,132 43,355 73,751
Changes of assumptions 130,147 277,698 (103,957) 51,929
Benefit payments (131,937) (110,790) (130,222) (156,791)
Net change in total OPEB liability 228,451 412,594 24,221 170,644
Total OPEB liability - beginning of year 2,451,494 2,038,900 2,014,679 1,844,035
Total OPEB liability - end of year 2,679,945$ 2,451,494$ 2,038,900$ 2,014,679$
Covered employee payroll 12,190,688$ 12,599,989$ 12,122,568$ 11,524,587$
Total OPEB liability as a percentage of covered payroll 21.98%19.46%16.82%17.48%
Note 1: 2021 Changes in Actuarial Assumptions
The discount rate was changed from 2.74 percent to 2.12 percent.
2020 Changes in Actuarial Assumptions
The discount rate was changed from 4.09 percent to 2.74 percent.
The healthcare trend rates, mortality tables, and payroll growth rates were updated for changes in recent
studies and inflationary adjustments.
2019 Changes in Actuarial Assumptions
The discount rate was changed from 3.44 percent to 4.09 percent.
2018 Changes in Actuarial Assumptions
The health care trend rates were changed to better anticipate short-term and long-term medical increases.
The mortality table was updated from RP-2014 adjusted to 2006 to the RP-2014 White Collar Mortality
Tables with MP-2016 Generational Improvement Scale.
The actuarial cost method was changed from entry age, level dollar to entry age, level percent of pay as
prescribed by GASB 75.
The discount rate was changed from 4.50 percent to 3.44 percent.
Note 2:The City implemented GASB Statement No. 75 for the year ended December 31, 2018. The schedules within
the RSI section require a 10-year presentation. Additional years will be presented as they become available.
Note 3:There are no assets accumulated in a trust that meet the criteria of GASB codification P22.101 or P52.101 to
pay related benefits for the OPEB plan.
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CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
Required Supplementary Information (Last Ten Years*)
Statutorily Contributions in Relation Contribution Covered Contributions as a
Required to the Statutorily Required Deficiency Employee Percentage of
Fiscal Year Ending Contributions (a) Contributions (b) (Excess) (a -b) Payroll** (d) Covered Payroll (b/d)
December 31, 2021 673,181$ 673,181$ -$ 8,977,525$ 7.50%
December 31, 2020 649,561 649,561 - 8,660,814 7.50%
December 31, 2019 651,633 651,633 - 8,688,397 7.50%
December 31, 2018 612,983 612,983 - 8,173,316 7.50%
December 31, 2017 572,442 572,442 - 7,634,297 7.50%
December 31, 2016 550,846 550,846 - 7,344,613 7.50%
December 31, 2015 564,168 564,168 - 7,522,240 7.50%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered employee payroll is defined as "pensionable wages".
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CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY'S AND NON-EMPLOYER PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
Required Supplementary Information (Last Ten Years*)
Proportionate share
of the Net Pension Employer's
Employer's Employer's Employer's proportionate Liability and the Proportionate Share Plan Fiduciary
Proportion Proportionate Share share of the State of Employer's share of the of the Net Pension Net Position as a
(Percentage) of (Amount) of the Minnesota's proportionate State of Minnesota's Employer's Liability (Asset) as Percentage of
the Net Pension Net Pension share of the Net Share of the Net Covered a Percentage of its the Total Pension
Fiscal Year Ending Liability (Asset)Liability (Assets) Pension Liability Pension Liability Payroll** Covered Payroll Liability
June 30, 2021 0.1206%5,150,160$ 157,297$ 5,307,457$ 8,685,747$ 59.29%87.00%
June 30, 2020 0.1240%7,434,368 229,207 7,663,575 8,843,395 84.07%79.10%
June 30, 2019 0.1189%6,573,715 204,324 6,778,039 8,411,938 78.15%80.23%
June 30, 2018 0.1194%6,623,822 217,244 6,841,066 7,892,915 83.92%79.50%
June 30, 2017 0.1201%7,667,105 96,388 7,763,493 7,735,587 99.11%75.90%
June 30, 2016 0.1172%9,516,060 124,251 9,640,311 7,269,667 130.90%68.91%
June 30, 2015 0.1243%6,441,872 - 6,441,872 7,303,595 88.20%78.20%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
2021 Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.50 percent to 6.50 percent for financial reporting purposes
The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020
2020 Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was
eliminated for privatizations occurring after June 30, 2020.
2020 Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than
previous rates.
Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements
and slightly fewer Rule of 90 and early retirements.
Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower
than the previous rates for years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for
males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The
base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant
mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%.
The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%.
The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly.
2019 Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding
contribution was changed prospectively, requiring $16.0 million due per year through 2031.
2019 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018
92
2018 Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June
30,2024.
Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.00 percent, effective January 1, 2019. Augmentation that has already accrued fro deferred members will still apply.
Contribution stabilizer provisions were repealed
Postretirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to
50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees,
disability benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2018 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017
The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.
2017 Changes in Plan Provisions
The State's contribution for the Minneaplis Employees Retirement Fund equals $16 million in 2017 and 2018 and $6 million thereafter
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The
state's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2017 Changes in Actuarial Assumptions
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60.0 percent for vested and nonvested deferred members. The
revised CSA loads are now zero percent for active member liability, 15.0 percent for vested deferred member liability, and 3.0 percent for nonvested deferred member
liability.
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044, and 2.5 percent per
year thereafter.
2016 Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035, and 2.5 percent per year thereafter, to 1.0 percent per year
for all years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were
decreased by .25 percent to 3.25 percent for payroll growth, and 2.5 percent for inflation.
2015 Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged in the General Employees Retirement Fund, which increased the total pension
liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the state's
contribution of $6.0 million, which meets the special funding situation definition, was due September 2015.
2015 Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030, and 2.5 percent per year thereafter, to 1.0 percent per year
through 2035, and 2.5 percent per year thereafter.
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CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Required Supplementary Information (Last Ten Years*)
Statutorily Contributions in Relation Contribution Covered Contributions as a
Required to the Statutorily Required Deficiency Employee Percentage of
Fiscal Year Ending Contributions (a) Contributions (b) (Excess) (a -b) Payroll** (d) Covered Payroll (b/d)
December 31, 2021 832,803$ 832,803$ -$ 4,705,104$ 17.70%
December 31, 2020 887,315 887,315 - 5,013,084 17.70%
December 31, 2019 818,676 818,676 - 4,829,945 16.95%
December 31, 2018 761,952 761,952 - 4,703,405 16.20%
December 31, 2017 720,865 720,865 - 4,449,784 16.20%
December 31, 2016 689,601 689,601 - 4,256,796 16.20%
December 31, 2015 687,935 687,935 - 4,246,511 16.20%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
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CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY'S AND NONEMPLOYER PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES POLICE & FIRE FUND
Required Supplementary Information (Last Ten Years*)
Proportionate share
of the Net Pension
Employer's proportionate Liability and the Employer's Proportionate
Employer's Proportion Employer's Proportionate share of the State of Employer's share of the Share of the Net Pension Plan Fiduciary Net
(Percentage) Share (Amount) of the Minnesota's proportionate State of Minnesota's Employer's Liability (Asset) as a Position as a
of the Net Pension Net Pension Liability share of the Net Share of the Net Covered Percentage of its Percentage of the
Fiscal Year Ending Liability (Asset)(Assets)Pension Liability Pension Liability Payroll** Covered Payroll Total Pension Liability
June 30, 2021 0.4161%3,211,852$ 144,394$ 3,356,246$ 5,100,055$ 62.98% 93.70%
June 30, 2020 0.4405%5,806,261 136,792 5,943,053 4,970,710 116.81% 87.20%
June 30, 2019 0.4483%4,772,607 - 4,772,607 4,729,530 100.91% 89.30%
June 30, 2018 0.4330%4,615,334 - 4,615,334 4,549,453 101.45% 88.80%
June 30, 2017 0.4410%5,954,026 - 5,954,026 4,529,519 131.45% 85.40%
June 30, 2016 0.4290%17,216,517 - 17,216,517 4,128,855 416.98% 63.90%
June 30, 2015 0.4460%5,067,604 - 5,067,604 4,031,138 125.71% 86.60%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
2021 Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.50 percent to 6.50 percent for financial reporting purposes.
The inflation assumption was changed from 2.50 percent to 2.25 percent.
The payroll growth assumption was changed from 3.25 percent to 3.0 percent.
The base mortality table for healthy annuitants and employees was chagned from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortaility improvement scale was changed from
MP-2019 to MP-2020.
The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public
Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The change results in slightly more unreduced retirements and fewer assumed early retirements.
Assumed rates of withdrawal were changed from select and ultimate ratesto service-based rates. The changes result in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities.
Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied.
2020 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
2018 Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00 percent for all years, with no trigger.
An end date of July 1, 2048 was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier
Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020.
Employer Contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019 and 17.7 percent of pay, effective January 1, 2020.
Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.00 percen, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2018 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
96
2017 Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the
previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements
The Combined Service Annuity (CSA) load was 30 percent for vested and nonvested deferred members. The CSA has been changed to 33 percent for vested members and
2 percent for nonvested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006),
with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled
annuitants was changed from the RP-2000 Disabled Mortality Table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more
expected terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60 percent.
Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to
be four years older) to the assumption that males are two years older than females.
The assumed percentage of female members electing joint and survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year through 2064, and 2.5 percent thereafter.
The single discount rate changed from 5.6 percent to 7.5 percent per annum.
2016 Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037, and 2.5 percent thereafter, to 1.0 percent per year for all future
years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate changed from 7.9 percent to 5.6 percent.
The assumed future salary increases, payroll growth, and inflation were decreased by .25 percent to 3.25 percent for payroll growth, and 2.5 percent for inflation.
2015 Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5
percent.
2015 Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030, and 2.5 percent per year thereafter,
to 1.0 percent per year through 2037, and 2.5 percent per year thereafter.
97
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CHANGES IN NET PENSION ASSET AND RELATED RATIO
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years*)
2021 2020 2019 2018 2017 2016 2015
Total Pension Liability
Service Cost 112,974$ 99,907$ 107,405$ 98,240$ 120,802$ 88,266$ 85,904$
Interest 136,948 137,983 171,057 191,790 174,191 173,219 178,242
Changes in Benefit Terms 164,525 18,251 - 26,709 - -
Differences Between Expected and Actual Experience (17,492) - (141,409) - (75,613) - -
Changes of Assumptions 5,863 - 52,746 44,974 (50,396) 358,422 -
Benefit Payments (520,165) (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Net Change in Total Pension Liability (281,872) 52,193 (536,161) 203,396 59,525 560,891 (353,395)
Total Pension Liability - Beginning of Year 2,755,638 2,703,445 3,239,606 3,036,210 2,976,685 2,415,794 2,769,189
Total Pension Liability - End of Year 2,473,766 2,755,638 2,703,445 3,239,606 3,036,210 2,976,685 2,415,794
Plan Fiduciary Net Position
Contributions - State and Local 180,079 165,652 164,147 154,366 147,002 143,061 158,545
Net Investment Income 199,905 503,214 (236,910) 557,117 275,625 (181,185) 149,635
Benefit Payments (520,165) (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Administrative Expenses (17,060) (21,707) (15,708) (15,024) (9,495) (14,560) (10,080)
Other - 581 - - - - -
Net Change in Plan Fiduciary Net Position (157,241) 297,518 (832,682) 564,851 276,964 (111,700) (319,441)
Plan Fiduciary Net Position - Beginning of Year 3,703,161 3,405,643 4,238,325 3,673,474 3,396,510 3,508,210 3,827,651
Plan Fiduciary Net Position - End of Year 3,545,920 3,703,161 3,405,643 4,238,325 3,673,474 3,396,510 3,508,210
Net Pension Liability (Asset) - End of Year (1,072,154) (947,523) (702,198) (998,719) (637,264) (419,825) (1,092,416)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability 143.3% 134.4% 126.0% 130.8% 121.0% 114.1% 145.2%
Covered Payroll n/a n/a n/a n/a n/a n/a n/a
Net Pension Liability as a Percentage of Covered Payroll n/a n/a n/a n/a n/a n/a n/a
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015
(using a December 31, 2014 measurement date).
2021 Changes in Actuarial Assumptions
The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2018 Minnesota PERA Police & Fire Plan actuarial valuation to
the rates used in the July 1, 2020 Minnesota PERA Police & Fire Plan actuarial valuation.
The inflation assumption decreased from 2.50% to 2.25% based on an updated historical analysis of inflation rates and forward-looking market expectations.
2020 Changes in Benefit Terms
The lump sum distribution upon retirement per year of service was changed from $7,700 to $8,500
2019 Changes in Actuarial Assumptions
The discount rate was changed from 5.75% to 5.25% to reflect updated capital market assumptions.
The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2016 Minnesota PERA Police & Fire Plan actuarial valuation to
the rates used in the July 1, 2018 Minnesota PERA Police & Fire Plan actuarial valuation.
The inflation assumption was updated from 2.75% to 2.50%.
2019 Changes in Benefit Terms
The lump sum distribution upon retirement per year of service was changed from $7,600 to $7,700
2018 Changes in Actuarial Assumptions
The discount rate was changed from 6.25% to 5.75% to reflect updated capital market assumptions.
2017 Changes in Actuarial Assumptions
The discount rate was changed from 5.75% to 6.25% to reflect updated capital market assumptions.
2017 Changes in Benefit Terms
The lump sum distribution upon retirement per year of service was changed from $7,500 to $7,600
2016 Changes in Actuarial Assumptions
The discount rate was changed from 7.00% to 5.75% to reflect updated capital market assumptions.
98
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Actuarially Determined Contribution 67,773$ 67,773$ 85,089$ 85,089$ 71,203$ 101,453$ 101,453$ 111,463$ 111,463$ 135,929$
Contributions in Relation to the
Actuarially Determined Contribution 187,797 170,652 159,147 154,366 147,002 143,061 158,545 134,340 151,503 101,119
Contribution Deficiency (Excess) (120,024) (102,879) (74,058) (69,277) (75,799) (41,608) (57,092) (22,877) (40,040) 34,810
Covered Payroll n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Contributions as a Percentage of
Covered Payroll n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Notes to Schedule
Valuation date:
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age normal cost method
Amortization method Straight-line amortization over a closed 5-year period
Remaining amortization period 5 years
Asset valuation method Fair value
Inflation 2.50%
Salary increases Not applicable
Investment rate of return 5.25% compounded annually
Retirement age Members are assumed to retire at the later of age 50 or 20 years of service
Mortality Based on RP-2014 Annuitant Mortality Table
99
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
INTERNATIONAL UNION OF OPERATING ENGINEERS CENTRAL PENSION FUND
Required Supplementary Information (Last Ten Years)
Required
Fiscal Year Ending Contributions
December 31, 2021 53,695$
December 31, 2020 48,624
December 31, 2019 53,912
December 31, 2018 51,152
December 31, 2017 50,782
December 31, 2016 51,410
December 31, 2015 51,699
December 31, 2014 51,868
December 31, 2013 52,046
December 31, 2012 51,636
100
CITY OF BROOKLYN CENTER, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
A special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted
or committed to expenditure for specified purposes other than debt service or capital projects.
Housing and Redevelopment Authority (HRA)
This fund was established to account for housing and redevelopment projects within the City of Brooklyn Center.
The HRA has the authority to levy an ad-valorem property tax levy, which is the primary funding source for
the expenditures from this fund. Annually, the cash balance at the end of the year is transferred into the EDA fund.
Economic Development Authority (EDA)
This fund was established to account for the development related activities in the City of Brooklyn Center. The
EDA generates the funding to accomplish the development projects from grants, excess funding from the HRA
property tax levy, or from transfers from other funds of the City.
This fund was established to account for the collection of grant funding for related projects within the City. During
the year, the City received grant funding through the Neighborhood Stabilization Program, which is for the
acquisition of run-down properties, the improvement of said properties, and then marketing them to the public.
Police Forfeitures
This fund was established to account for the proceeds from property seized by Police Department personnel.
Revolving Loan
This fund was established to account for the proceeds and disbursement of revolving loan funds granted from the
Minnesota Investment Fund.
Centerbrook Golf
The Centerbrook Golf fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf course
owned by the City.
Tax Increment District No. 2
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District, which
consisted of the redevelopment of the properties historically referred to as the Earle Brown Farm.
Tax Increment District No. 5
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District, which
consisted of the redevelopment of the former Brookdale mall site, which is now called Shingle Creek Crossing.
Tax Increment District No. 6
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District.
Tax Increment District No. 7
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District.
Tax Increment District No. 8
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District.
City Initiative Grants
Revenues and expenditures from grants received from outside entities are accounted for in the fund. The Police
Department receive several federal, state and other local grants, which are accounted for here. Other activities
include grant funding for local recreation programs and cable television.
Community Development Block Grant
101
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND
Debt service funds are used to account for and report financial resources that are restricted, committed or
assigned to expenditure for principal, interest and other charges related to long-term debt.
General Obligation Improvement Bonds, 2013B
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2024.
General Obligation Improvement Bonds, 2015A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2026.
General Obligation Improvement Bonds, 2016A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2027.
General Obligation Improvement Bonds, 2017A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2028.
General Obligation Improvement Bonds, 2018A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2029.
General Obligation Improvement Bonds, 2019A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2030.
General Obligation Improvement Bonds, 2020A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2031.
General Obligation Improvement Bonds, 2021A
This fund was established to accumulate collections of special assessments which were levied on the property
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond
has a final maturity date of February 1, 2032.
Tax Increment Bonds, 2016C
This fund was established to account for the collection of tax-increment generated revenues, which are annually
transferred from Tax Increment District No. 5 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2023.
Tax Increment Bonds, 2016B
This fund was established to account for the collection of tax-increment generated revenues, which are annually
transferred from Tax Increment District No. 5 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2029.
Tax Increment Refunding Bonds, 2015B
This fund was established to account for the collection of tax-increment generated revenues, which are annually
transferred from Tax Increment District No. 3 fund. The bond was issued to refund the maturities of the Tax
Increment Bonds, 2004D. This original bond was issued to finance various redevelopment projects within the City.
This bond had a final maturity date of February 1, 2020.
Tax Increment Bonds, 2013A
This fund was established to account for the collection of tax-increment generated revenues, which are annually
transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2022.
102
CITY OF BROOKLYN CENTER, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other
capital assets.
Capital Reserve Emergency
This fund was established to account for monies held in reserve for catastrophic losses or unforeseen capital items.
Technology
This fund was established to provide funds and to account for the expenditure of such funds, for technological
improvements/renovations.
103
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2021
Total
Special Capital Nonmajor
Revenue Project Governmental
ASSETS
Cash and investments 4,124,867$ 1,451,429$ 5,576,296$
Receivables:
Accounts - net 2,507 - 2,507
Current taxes 4,674 - 4,674
Due from other governments 116,323 - 116,323
Inventory 4,374 - 4,374
Notes receivable 37,222 - 37,222
Advances to other funds 255,575 - 255,575
Assets held for resale 434,978 - 434,978
Total assets 4,980,520$ 1,451,429$ 6,431,949$
LIABILITIES
Accounts payable 136,832$ 13,927$ 150,759$
Accrued salaries and wages 10,673 - 10,673
Due to other funds 199,333 - 199,333
Due to other governments 33,128 - 33,128
Deposits payable 24,419 - 24,419
Advances from other funds 255,575 - 255,575
Total liabilities 659,960 13,927 673,887
FUND BALANCES (DEFICITS)
Nonspendable
Inventory 4,374 - 4,374
Restricted
Tax increment financing 2,295,412 - 2,295,412
Economic development 1,910,507 - 1,910,507
Law enforcement enhancements 67,249 - 67,249
Committed
Public safety 7,465 - 7,465
Cable communications 159,354 - 159,354
Community recreation 89,430 - 89,430
Emergency capital improvements - 1,169,273 1,169,273
Technology improvements - 268,229 268,229
Unassigned (213,231) - (213,231)
Total fund balances 4,320,560 1,437,502 5,758,062
Total liabilities and fund balances 4,980,520$ 1,451,429$ 6,431,949$
104
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2021
Total
Special Capital Nonmajor
Revenue Project Governmental
REVENUES
Property taxes 449,411$ -$ 449,411$
Tax increments 873,624 - 873,624
Intergovernmental 102,987 - 102,987
Charges for services 362,230 - 362,230
Fines and forfeits 67,627 - 67,627
Investment earnings (net of fair value adjustment)(9,388) (2,696) (12,084)
Miscellaneous 20,841 - 20,841
Total revenues 1,867,332 (2,696) 1,864,636
EXPENDITURES
Current:
General government - 207,662 207,662
Public safety 80,080 - 80,080
Parks and recreation 418,328 - 418,328
Economic development 681,985 - 681,985
Total expenditures 1,180,393 207,662 1,388,055
Excess (deficiency) of revenues
over (under) expenditures 686,939 (210,358) 476,581
OTHER FINANCING SOURCES (USES)
Transfers in 535,180 130,000 665,180
Transfers out (802,463) - (802,463)
Total other financing sources (uses)(267,283) 130,000 (137,283)
Net change in fund balance 419,656 (80,358) 339,298
Fund balances - January 1 3,900,904 1,517,860 5,418,764
Fund balances - December 31 4,320,560$ 1,437,502$ 5,758,062$
105
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2021
Housing and Economic Community
Redevelopment Development Development Police Revolving Centerbrook
Authority Authority Block Grant Forfeitures Loan Golf
ASSETS
Cash and investments -$ 1,800,660$ 57,376$ 81,668$ 33,288$ -$
Receivables:
Accounts - net - 2,500 - - - 7
Current taxes 2,088 - - - - -
Due from other governments - 84,749 15,000 - - -
Inventory - - - - - 4,374
Notes receivable - - - - 37,222 -
Advances to other funds - - - - - -
Assets held for resale - 12,000 - - - -
Total assets 2,088$ 1,899,909$ 72,376$ 81,668$ 70,510$ 4,381$
LIABILITIES
Accounts payable -$ 87,982$ -$ -$ -$ 1,003$
Accrued salaries and wages - 6,955 - - - 3,718
Due to other funds - - - - - 186,387
Due to other governments - - - - 29,439 -
Deposits payable - 10,000 - 14,419 - -
Advances from other funds - - - - - -
Total liabilities - 104,937 - 14,419 29,439 191,108
FUND BALANCES (DEFICITS)
Nonspendable
Inventory - - - - - 4,374
Restricted
Tax increment financing - - - - - -
Economic development 2,088 1,794,972 72,376 - 41,071 -
Law enforcement enhancements - - - 67,249 - -
Committed
Public safety - - - - - -
Cable communications - - - - - -
Community recreation - - - - - -
Unassigned - - - - - (191,101)
Total fund balances (deficits)2,088 1,794,972 72,376 67,249 41,071 (186,727)
Total liabilities and fund balances 2,088$ 1,899,909$ 72,376$ 81,668$ 70,510$ 4,381$
106
Total
Tax Tax Tax Tax Tax City Nonmajor
Increment Increment Increment Increment Increment Initiative Special
District No. 2 District No. 5 District No. 6 District No. 7 District No. 8 Grants Revenue
1,025,671$ 600,193$ 70,050$ 214,940$ -$ 241,021$ 4,124,867$
- - - - - - 2,507
- 2,586 - - - - 4,674
- - - - - 16,574 116,323
- - - - - - 4,374
- - - - - - 37,222
255,575 - - - - - 255,575
422,978 - - - - - 434,978
1,704,224$ 602,779$ 70,050$ 214,940$ -$ 257,595$ 4,980,520$
-$ 37,851$ -$ -$ 8,650$ 1,346$ 136,832$
- - - - - - 10,673
- - - - 12,946 - 199,333
- 1,483 835 837 534 - 33,128
- - - - - - 24,419
- 255,575 - - - - 255,575
- 294,909 835 837 22,130 1,346 659,960
- - - - - - 4,374
1,704,224 307,870 69,215 214,103 - - 2,295,412
- - - - - - 1,910,507
- - - - - - 67,249
- - - - - 7,465 7,465
- - - - - 159,354 159,354
- - - - - 89,430 89,430
- - - - (22,130) - (213,231)
1,704,224 307,870 69,215 214,103 (22,130) 256,249 4,320,560
1,704,224$ 602,779$ 70,050$ 214,940$ -$ 257,595$ 4,980,520$
107
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2021
20200-46321 20300-4631* 20400-46323 20500-4219* 20500-4219* 20500-4219*
Housing and Economic Community
Redevelopment Development Development Police Revolving Centerbrook
Authority Authority Block Grant Forfeitures Loan Golf
REVENUES
Property taxes 449,411$ -$ -$ -$ -$ -$
Tax increments - - - - - -
Intergovernmental - - - - - -
Charges for services - 22,980 - - - 322,638
Fines and forfeits - - - 67,627 - -
Investment earnings (net of fair value adjustment)- (3,688) - (409) (70) -
Miscellaneous - - - - - -
Total revenues 449,411 19,292 - 67,218 (70) 322,638
EXPENDITURES
Current:
Public safety - - - 11,127 - -
Parks and recreation - - - - - 395,451
Economic development - 424,642 - - - -
Total expenditures - 424,642 - 11,127 - 395,451
Excess (deficiency) of revenues
over (under) expenditures 449,411 (405,350) - 56,091 (70) (72,813)
OTHER FINANCING SOURCES (USES)
Transfers in - 450,180 - - - 85,000
Transfers out (450,180) - - - - -
Total other financing sources (uses)(450,180) 450,180 - - - 85,000
Net change in fund balance (769) 44,830 - 56,091 (70) 12,187
Fund balances (deficits) - January 1 2,857 1,750,142 72,376 11,158 41,141 (198,914)
Fund balances (deficits) - December 31 2,088$ 1,794,972$ 72,376$ 67,249$ 41,071$ (186,727)$
108
27700-46412 28000-46415 28000-46415 28000-46415 28000-46415 28600-*
Total
Tax Tax Tax Tax Tax City Nonmajor
Increment Increment Increment Increment Increment Initiative Special
District No. 2 District No. 5 District No. 6 District No. 7 District No. 8 Grants Revenue
-$ -$ -$ -$ -$ -$ 449,411$
- 524,564 187,064 161,996 - - 873,624
- - - - - 102,987 102,987
- - - - - 16,612 362,230
- - - - - - 67,627
(1,898) (2,154) (75) (573) - (521) (9,388)
2,586 - - - - 18,255 20,841
688 522,410 186,989 161,423 - 137,333 1,867,332
- - - - - 68,953 80,080
- - - - - 22,877 418,328
8,790 51,318 113,770 73,835 9,630 - 681,985
8,790 51,318 113,770 73,835 9,630 91,830 1,180,393
(8,102) 471,092 73,219 87,588 (9,630) 45,503 686,939
- - - - - - 535,180
- (352,283) - - - - (802,463)
- (352,283) - - - - (267,283)
(8,102) 118,809 73,219 87,588 (9,630) 45,503 419,656
1,712,326 189,061 (4,004) 126,515 (12,500) 210,746 3,900,904
1,704,224$ 307,870$ 69,215$ 214,103$ (22,130)$ 256,249$ 4,320,560$
109
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2021
Total
Capital Nonmajor
Reserve Capital
Emergency Technology Projects
ASSETS
Cash and investments 1,169,273$ 282,156$ 1,451,429$
LIABILITIES
Accounts payable - 13,927 13,927
FUND BALANCES
Committed
Emergency capital improvements 1,169,273 - 1,169,273
Technology improvements - 268,229 268,229
Total fund balances 1,169,273 268,229 1,437,502
Total liabilities and fund balances 1,169,273$ 282,156$ 1,451,429$
110
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2021
Total
Capital Nonmajor
Reserve Capital
Emergency Technology Projects
REVENUES
Investment earnings (net of fair value adjustment)(2,457)$ (239)$ (2,696)$
EXPENDITURES
Current:
General government - 207,662 207,662
Excess (deficiency) of revenues
over (under) expenditures (2,457) (207,901) (210,358)
OTHER FINANCING SOURCES
Transfers in - 130,000 130,000
Net change in fund balance (2,457) (77,901) (80,358)
Fund balances - January 1 1,171,730 346,130 1,517,860
Fund balances - December 31 1,169,273$ 268,229$ 1,437,502$
111
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 1 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property taxes 18,530,305$ 18,530,305$ 18,420,805$ (109,500)$
Penalties and interest 18,052 18,052 11,630 (6,422)
Lodging tax 500,000 500,000 732,538 232,538
Total taxes 19,048,357 19,048,357 19,164,973 116,616
Special assessments 100,000 100,000 40,766 (59,234)
Licenses and permits:
Liquor and beer licenses 59,250 59,250 69,925 10,675
Building permits 500,000 500,000 365,811 (134,189)
Mechanical permits 50,000 50,000 48,339 (1,661)
Sewer and water permits 3,500 3,500 2,420 (1,080)
Plumbing permits 75,000 75,000 43,448 (31,552)
Garbage licenses 2,500 2,500 2,870 370
Mechanical licenses 9,000 9,000 7,100 (1,900)
Service station licenses 2,200 2,200 1,820 (380)
Vehicle dealer licenses 1,500 1,500 1,500 -
Cigarette licenses 2,850 2,850 2,600 (250)
Sign permits 3,000 3,000 2,040 (960)
Rental dwelling licenses 211,243 211,243 155,814 (55,429)
Amusement licenses 400 400 55 (345)
Electrical Permits 85,000 85,000 63,600 (21,400)
ROW permits 5,000 5,000 1,750 (3,250)
Miscellaneous licenses and permits 5,650 5,650 5,500 (150)
Total licenses and permits 1,016,093 1,016,093 774,592 (241,501)
Intergovernmental:
Federal:
CARES funding - - 93,000 93,000
State:
Local government aid 1,147,225 1,147,225 1,141,915 (5,310)
Police pension aid 431,000 431,000 442,009 11,009
PERA aid 34,365 34,365 - (34,365)
Fireperson pension aid 180,000 180,000 187,797 7,797
Police training 48,000 48,000 44,306 (3,694)
Other state grants 10,000 10,000 59,694 49,694
Local:
Miscellaneous grants 4,000 4,000 75,000 71,000
Total intergovernmental 1,854,590 1,854,590 2,043,721 189,131
Charges for services:
General government charges 76,500 76,500 73,414 (3,086)
Public safety charges 153,250 153,250 32,038 (121,212)
Community development fees 3,000 3,000 257 (2,743)
Recreation fees 241,000 241,000 108,741 (132,259)
Community Center fees 352,000 352,000 172,845 (179,155)
Total charges for services 825,750 825,750 387,295 (438,455)
Fines and forfeits 216,000 216,000 161,915 (54,085)
Miscellaneous:
Investment earnings (net of fair value change)79,900 79,900 (19,188) (99,088)
Other 163,200 163,200 373,580 210,380
Total miscellaneous 243,100 243,100 354,392 111,292
Total revenues 23,303,890 23,303,890 22,927,654 (376,236)
112
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 2 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services 56,680$ 56,680$ 59,196$ (2,516)$
Supplies 450 450 1,581 (1,131)
Services and other charges 105,660 105,660 115,619 (9,959)
Total mayor and council 162,790 162,790 176,396 (13,606)
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services 964,636 964,636 750,801 213,835
Supplies 9,700 9,700 5,183 4,517
Services and other charges 136,130 136,130 201,056 (64,926)
Total administrative office 1,110,466 1,110,466 957,040 153,426
Elections and voter registration:
Current:
Personal services 89,260 89,260 85,967 3,293
Supplies 3,500 3,500 5,076 (1,576)
Services and other charges 15,800 15,800 18,154 (2,354)
Total elections and voter registration 108,560 108,560 109,197 (637)
Finance:
Current:
Personal services 601,566 601,566 536,023 65,543
Supplies 7,450 7,450 2,633 4,817
Services and other charges 60,165 60,165 58,101 2,064
Total finance 669,181 669,181 596,757 72,424
Assessing
Current:
Services and other charges 255,500 255,500 258,175 (2,675)
Legal:
Current:
Services and other charges 435,000 435,000 477,689 (42,689)
Communications and engagement
Current:
Personal services 275,559 275,559 237,618 37,941
Supplies 6,900 6,900 2,708 4,192
Services and other charges 99,400 99,400 240,017 (140,617)
Total communications and engagement 381,859 381,859 480,343 (98,484)
Government buildings:
Current:
Personal services 296,194 296,194 278,654 17,540
Supplies 40,650 40,650 65,357 (24,707)
Services and other charges 605,445 605,445 605,280 165
Total government buildings 942,289 942,289 949,291 (7,002)
Information technology:
Current:
Personal services 362,617 362,617 340,082 22,535
Supplies 4,350 4,350 11,434 (7,084)
Services and other charges 330,111 330,111 372,766 (42,655)
Total information technology 697,078 697,078 724,282 (27,204)
Total general government 4,762,723 4,762,723 4,729,170 33,553
113
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 3 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Public safety:
Police protection:
Current:
Personal services 8,243,373$ 8,243,373$ 7,490,705$ 752,668$
Supplies 162,150 162,150 306,230 (144,080)
Services and other charges 1,366,954 1,366,954 1,597,921 (230,967)
Total current 9,772,477 9,772,477 9,394,856 377,621
Total police protection 9,772,477 9,772,477 9,394,856 377,621
Fire protection:
Current:
Personal services 1,078,920 1,078,920 1,161,642 (82,722)
Supplies 80,200 80,200 99,768 (19,568)
Services and other charges 479,777 479,777 490,605 (10,828)
Total current 1,638,897 1,638,897 1,752,015 (113,118)
Total fire protection 1,638,897 1,638,897 1,752,015 (113,118)
Protective inspection:
Current:
Personal services 255,747 255,747 328,908 (73,161)
Supplies - - 4,434 (4,434)
Services and other charges 24,800 24,800 56,639 (31,839)
Total current 280,547 280,547 389,981 (109,434)
Total protective inspection 280,547 280,547 389,981 (109,434)
Building and community standards
Current:
Personal services 1,057,093 1,057,093 1,025,383 31,710
Supplies 5,000 5,000 5,120 (120)
Services and other charges 141,251 141,251 167,485 (26,234)
Total current 1,203,344 1,203,344 1,197,988 5,356
Total building and community standards 1,203,344 1,203,344 1,197,988 5,356
Emergency preparedness:
Current:
Supplies 19,600 19,600 11,995 7,605
Services and other charges 7,000 7,000 3,951 3,049
Total emergency preparedness 26,600 26,600 15,946 10,654
Total public safety 12,921,865 12,921,865 12,750,786 171,079
Public works:
Engineering department:
Current:
Personal services 1,036,287 1,036,287 1,045,764 (9,477)
Supplies 13,620 13,620 13,941 (321)
Services and other charges 63,024 63,024 66,231 (3,207)
Total engineering department 1,112,931 1,112,931 1,125,936 (13,005)
Street department:
Current:
Personal services 735,870 735,870 964,366 (228,496)
Supplies 156,520 156,520 127,910 28,610
Services and other charges 759,696 759,696 642,557 117,139
Total street department 1,652,086 1,652,086 1,734,833 (82,747)
Total public works 2,765,017 2,765,017 2,860,769 (95,752)
114
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 4 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Community services:
Current:
Services and other charges 187,000$ 187,000$ 210,488$ (23,488)$
Parks and recreation:
Administration:
Current:
Personal services 260,063 260,063 205,697 54,366
Supplies - - 3,474 (3,474)
Services and other charges 7,200 7,200 10,915 (3,715)
Total administration 267,263 267,263 220,086 47,177
Recreation programs:
Current:
Personal services 639,609 639,609 693,828 (54,219)
Supplies 49,900 49,900 40,338 9,562
Services and other charges 244,454 244,454 274,149 (29,695)
Total recreation programs 933,963 933,963 1,008,315 (74,352)
Community center:
Current:
Personal services 426,122 426,122 442,873 (16,751)
Supplies 37,100 37,100 32,323 4,777
Services and other charges 167,250 167,250 178,204 (10,954)
Total community center 630,472 630,472 653,400 (22,928)
Park maintenance:
Current:
Personal services 879,954 879,954 847,642 32,312
Supplies 79,625 79,625 59,820 19,805
Services and other charges 486,043 486,043 486,740 (697)
Total current 1,445,622 1,445,622 1,394,202 51,420
Capital outlay 7,000 7,000 10,000 (3,000)
Total park maintenance 1,452,622 1,452,622 1,404,202 48,420
Total parks and recreation 3,284,320 3,284,320 3,286,003 (1,683)
Economic development:
Convention bureau:
Current:
Services and other charges 237,500 237,500 349,617 (112,117)
Community development administration
Personal services 188,689 188,689 191,184 (2,495)
Supplies 11,500 11,500 5,145 6,355
Services and other charges 67,220 67,220 79,920 (12,700)
Total current 267,409 267,409 276,249 (8,840)
Capital outlay - - 1,752 (1,752)
Total community development administration 267,409 267,409 278,001 (10,592)
Total economic development 504,909 504,909 627,618 (122,709)
Nondepartmental:
Expenditures not charged to departments:
Current:
Personal services (345,000) (345,000) - (345,000)
Supplies 14,150 14,150 6,986 7,164
Services and other charges 958,640 958,640 974,684 (16,044)
Total nondepartmental 627,790 627,790 981,670 (353,880)
Total expenditures 25,053,624 25,053,624 25,446,504 (392,880)
115
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 5 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Excess (deficiency) of revenues
over (under) expenditures (1,749,734)$ (1,749,734)$ (2,518,850)$ (769,116)$
OTHER FINANCING SOURCES (USES)
Transfers in 55,000 55,000 108,410 53,410
Transfers in - administrative services reimbursed 1,518,097 1,518,097 1,579,711 61,614
Transfers out (220,000) (220,000) (215,000) 5,000
Total other financing sources (uses)1,353,097 1,353,097 1,473,121 120,024
Net change in fund balance (396,637) (396,637) (1,045,729) (649,092)
Fund balance - January 1 14,205,568 14,205,568 14,205,568 -
Fund balance - December 31 13,808,931$ 13,808,931$ 13,159,839$ (649,092)$
116
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Taxes:
Property taxes 452,913$ 452,913$ 449,411$
OTHER FINANCING SOURCES (USES)
Transfers out (452,913) (452,913) (450,180)
Net change in fund balance - - (769)
Fund balance - January 1 2,857 2,857 2,857
Fund balance - December 31 2,857$ 2,857$ 2,088$
Budgeted Amounts
117
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Charges for services -$ -$ 22,980$
Investment earnings (net of fair value adjustment)10,900 10,900 (3,688)
Total revenues 10,900 10,900 19,292
EXPENDITURES
Current:
Economic development:
Personal services 334,291 334,291 180,229
Supplies 2,500 2,500 364
Services and other charges 415,091 415,091 244,049
Total expenditures 751,882 751,882 424,642
Excess (deficiency) of revenues
over (under) expenditures (740,982) (740,982) (405,350)
OTHER FINANCING SOURCES
Transfers in 452,913 452,913 450,180
Net change in fund balance (288,069) (288,069) 44,830
Fund balance - January 1 1,750,142 1,750,142 1,750,142
Fund balance - December 31 1,462,073$ 1,462,073$ 1,794,972$
Budgeted Amounts
118
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental -$ -$ -$
EXPENDITURES
Current:
Economic development:
Services and other charges - - -
Net change in fund balance - - -
Fund balance - January 1 72,376 72,376 72,376
Fund balance - December 31 72,376$ 72,376$ 72,376$
119
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURES
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Fines and forfeitures 13,000$ 13,000$ 67,627$
Investment earnings (net of fair value adjustment)700 700 (409)
Total revenues 13,700 13,700 67,218
EXPENDITURES
Current:
Public safety:
Supplies - - 11,127
Net change in fund balance 13,700 13,700 56,091
Fund balance - January 1 11,158 11,158 11,158
Fund balance - December 31 24,858$ 24,858$ 67,249$
120
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - REVOLVING LOAN FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of fair value adjustment)-$ -$ (70)$
Net change in fund balance - - (70)
Fund balance - January 1 41,141 41,141 41,141
Fund balance - December 31 41,141$ 41,141$ 41,071$
121
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CENTERBROOK GOLF COURSE
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Charges for services 267,250$ 267,250$ 322,638$
Miscellaneous 2,000 2,000 -
Total revenues 269,250 269,250 322,638
EXPENDITURES
Current:
Parks and Recreation:
Personal services 167,873 167,873 198,825
Supplies 25,750 25,750 23,677
Services and other charges 143,953 143,953 172,949
Total expenditures 337,576 337,576 395,451
Excess (deficiency) of revenues
over (under) expenditures (68,326) (68,326) (72,813)
OTHER FINANCING SOURCES
Transfers in 85,000 85,000 85,000
Net change in fund balance 16,674 16,674 12,187
Fund balance (deficit) - January 1 (198,914) (198,914) (198,914)
Fund balance (deficit) - December 31 (182,240)$ (182,240)$ (186,727)$
122
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 2
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of fair value adjustment)7,500$ 7,500$ (1,898)$
Miscellaneous 3,619 3,619 2,586
Total revenues 11,119 11,119 688
EXPENDITURES
Current:
Economic development:
Services and other charges - - 8,790
Capital outlay:
Economic development 100,000 100,000 -
Total expenditures 100,000 100,000 8,790
Excess (deficiency) of revenues over (under) expenditures (88,881) (88,881) (8,102)
OTHER FINANCING SOURCES
Transfers in 98,826 98,826 -
Net change in fund balance 9,945 9,945 (8,102)
Fund balance - January 1 1,712,326 1,712,326 1,712,326
Fund balance - December 31 1,722,271$ 1,722,271$ 1,704,224$
123
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 3
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 4,514,347$ 4,514,347$ 6,205,922$
Charges for services 96,190 96,190 77,732
Investment earnings (net of fair value adjustment)44,600 44,600 (20,493)
Miscellaneous 921,206 921,206 27,386
Total revenues 5,576,343 5,576,343 6,290,547
EXPENDITURES
Current:
Economic development:
Services and other charges 1,562,156 1,562,156 891,138
Excess of revenues over expenditures 4,014,187 4,014,187 5,399,409
OTHER FINANCING SOURCES (USES)
Transfers in - - 1,500
Transfers out (2,244,938) (2,244,938) (2,243,137)
Total other financing sources (uses)(2,244,938) (2,244,938) (2,241,637)
Net change in fund balance 1,769,249 1,769,249 3,157,772
Fund balance - January 1 23,057,146 23,057,146 23,057,146
Fund balance - December 31 24,826,395$ 24,826,395$ 26,214,918$
124
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 5
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 506,524$ 506,524$ 524,564$
Investment earnings (net of fair value adjustment)5,700 5,700 (2,154)
Total revenues 512,224 512,224 522,410
EXPENDITURES
Current:
Economic development:
Services and other charges 263,945 263,945 51,318
Excess of revenues over expenditures 248,279 248,279 471,092
OTHER FINANCING SOURCES (USES)
Transfers out (356,083) (356,083) (352,283)
Net change in fund balance (107,804) (107,804) 118,809
Fund balance - January 1 189,061 189,061 189,061
Fund balance - December 31 81,257$ 81,257$ 307,870$
125
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 6
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 170,221$ 170,221$ 187,064$
Investment earnings (net of fair value adjustment)100 100 (75)
Total revenues 170,321 170,321 186,989
EXPENDITURES
Current:
Economic development:
Services and other charges 170,222 170,222 113,770
Net change in fund balance 99 99 73,219
Fund balance (deficit) - January 1 (4,004) (4,004) (4,004)
Fund balance (deficit) - December 31 (3,905)$ (3,905)$ 69,215$
126
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 7
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 117,648$ 117,648$ 161,996$
Investment earnings (net of fair value adjustment)100 100 (573)
Total revenues 117,748 117,748 161,423
EXPENDITURES
Current:
Economic development:
Services and other charges 2,941 2,941 73,835
Net change in fund balance 114,807 114,807 87,588
Fund balance - January 1 126,515 126,515 126,515
Fund balance - December 31 241,322$ 241,322$ 214,103$
127
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 8
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
EXPENDITURES
Current:
Economic development:
Services and other charges -$ -$ 9,630$
Net change in fund balance - - (9,630)
Fund balance (deficit) - January 1 (12,500) (12,500) (12,500)
Fund balance (deficit) - December 31 (12,500)$ (12,500)$ (22,130)$
128
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental 193,568$ 193,568$ 102,987$
Charges for services 17,000 17,000 16,612
Investment earnings (net of fair value adjustment)600 600 (521)
Miscellaneous 18,200 18,200 18,255
Total revenues 229,368 229,368 137,333
EXPENDITURES
Current:
Public safety:
Personal services 95,425 95,425 29,452
Supplies 13,800 13,800 38,760
Services and other charges 10,800 10,800 741
Parks and recreation:
Personal services 6,249 6,249 629
Supplies 9,000 9,000 13,669
Services and other charges 23,500 23,500 8,579
Total expenditures 158,774 158,774 91,830
Excess (deficiency) of revenues
over (under) expenditures 70,594 70,594 45,503
Fund balance - January 1 210,746 210,746 210,746
Fund balance - December 31 281,340$ 281,340$ 256,249$
129
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Property taxes 1,540,648$ 1,540,648$ 1,531,175$
Special assessments 904,186 904,186 1,343,740
Investment earnings (net of fair value adjustment)18,600 18,600 (10,620)
Total revenues 2,463,434 2,463,434 2,864,295
EXPENDITURES
Debt service:
Principal 4,359,017 4,359,017 4,359,017
Interest 670,249 670,249 670,248
Fiscal agent fees 15,000 15,000 18,481
Total expenditures 5,044,266 5,044,266 5,047,746
Excess (deficiency) of revenues
over (under) expenditures (2,580,832) (2,580,832) (2,183,451)
OTHER FINANCING SOURCES (USES)
Transfers in 2,601,021 2,601,021 2,595,420
Transfers out - - (1,500)
Total other financing sources (uses)2,601,021 2,601,021 2,593,920
Net change in fund balance 20,189 20,189 410,469
Fund balance - January 1 4,398,682 4,398,682 4,398,682
Fund balance - December 31 4,418,871$ 4,418,871$ 4,809,151$
130
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Intergovernmental 13,350,416$ 13,350,416$ 8,189,135$
Investment earnings (net of fair value adjustment)9,700 9,700 (3,961)
Miscellaneous - - 1,601
Total revenues 13,360,116 13,360,116 8,186,775
EXPENDITURES
Capital outlay:
Public works 14,870,900 14,870,900 6,381,314
Excess (deficiency) of revenues
over (under) expenditures (1,510,784) (1,510,784) 1,805,461
OTHER FINANCING SOURCES
Transfers in 175,000 175,000 -
Issuance of debt 1,933,000 1,933,000 -
Total other financing sources 2,108,000 2,108,000 -
Net change in fund balance 597,216 597,216 1,805,461
Fund balance - January 1 773,207 773,207 773,207
Fund balance - December 31 1,370,423$ 1,370,423$ 2,578,668$
Budgeted Amounts
131
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - MUNICIPAL STATE AID FOR CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Intergovernmental 1,357,475$ 1,357,475$ 1,354,625$
Investment earnings (net of fair value adjustment)28,900 28,900 (7,622)
Total revenues 1,386,375 1,386,375 1,347,003
EXPENDITURES
Current:
Public works:
Supplies 70,000 70,000 69,198
Services and other charges 105,000 105,000 139,838
Capital outlay:
Public works 2,962,000 2,962,000 1,854,232
Total expenditures 3,137,000 3,137,000 2,063,268
Net change in fund balance (1,750,625) (1,750,625) (716,265)
Fund balance - January 1 2,672,384 2,672,384 2,672,384
Fund balance - December 31 921,759$ 921,759$ 1,956,119$
Budgeted Amounts
132
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - SPECIAL ASSESSMENT CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Charges for services -$ -$ 1,650$
Special assessments 1,223,114 1,223,114 489,600
Investment earnings (net of fair value adjustment)13,200 13,200 -
Total revenues 1,236,314 1,236,314 491,250
EXPENDITURES
Current:
Public works
Services and other charges 2,300 2,300 1,077
Capital outlay:
Public works 2,140,000 2,140,000 2,802,631
Debt service:
Bond issuance costs - - 21,151
Total expenditures 2,142,300 2,142,300 2,824,859
Excess (deficiency) of revenues
over (under) expenditures (905,986) (905,986) (2,333,609)
OTHER FINANCING SOURCES
Issuance of debt - - 1,183,866
Premium on issuance of debt - - 136,326
Total other financing sources - - 1,320,192
Net change in fund balance (905,986) (905,986) (1,013,417)
Fund balance - January 1 1,480,133 1,480,133 1,480,133
Fund balance - December 31 574,147$ 574,147$ 466,716$
Budgeted Amounts
133
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - STREET RECONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Franchise fees 710,000$ 710,000$ 748,209$
Investment earnings (net of fair value adjustment)55,500 55,500 (18,105)
Total revenues 765,500 765,500 730,104
EXPENDITURES
Capital outlay:
Public works 4,543,000 4,543,000 2,807,050
Debt service:
Bond issuance costs - - 29,328
Total expenditures 4,543,000 4,543,000 2,836,378
Excess (deficiency) of revenues
over (under) expenditures (3,777,500) (3,777,500) (2,106,274)
OTHER FINANCING SOURCES
Issuance of debt 2,000,000 2,000,000 1,821,134
Premium on issuance of debt - - 209,931
Total other financing sources 2,000,000 2,000,000 2,031,065
Net change in fund balance (1,777,500) (1,777,500) (75,209)
Fund balance - January 1 5,129,774 5,129,774 5,129,774
Fund balance - December 31 3,352,274$ 3,352,274$ 5,054,565$
Budgeted Amounts
134
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL RESERVE EMERGENCY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Investment earnings (net of fair value adjustment)10,400$ 10,400$ (2,457)$
Net change in fund balance 10,400 10,400 (2,457)
Fund balance - January 1 1,171,730 1,171,730 1,171,730
Fund balance - December 31 1,182,130$ 1,182,130$ 1,169,273$
Budgeted Amounts
135
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - TECHNOLOGY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Investment earnings (net of fair value adjustment)3,200$ 3,200$ (239)$
EXPENDITURES
Current:
General government:
Supplies 11,800 11,800 59,489
Services and other charges 10,000 10,000 148,173
Capital outlay:
General government 60,000 60,000 -
Total expenditures 81,800 81,800 207,662
Excess (deficiency) of revenues
over (under) expenditures (78,600) (78,600) (207,901)
OTHER FINANCING SOURCES
Transfers in 130,000 130,000 130,000
Net change in fund balance 51,400 51,400 (77,901)
Fund balance - January 1 346,130 346,130 346,130
Fund balance - December 31 397,530$ 397,530$ 268,229$
Budgeted Amounts
136
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137
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
DEBT SERVICE FUND BY ACCOUNT
December 31, 2021
General General General General General
Obligation Obligation Obligation Obligation Obligation
Improvement Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds
2013B 2015A 2016A 2017A 2018A
ASSETS
Cash and investments 806,126$ 600,544$ 236,714$ 840,271$ 893,960$
Receivables:
Current taxes 1,821 1,198 1,015 1,325 1,192
Special assessments 114,036 320,928 - 408,554 891,438
Total assets 921,983 922,670 237,729 1,250,150 1,786,590
LIABILITIES
Accounts payable 200 200 200 200 200
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 111,672 320,446 - 408,185 890,086
FUND BALANCES (DEFICIT)
Restricted for debt service 810,111 602,024 237,529 841,765 896,304
Total liabilities, deferred inflows of
resources and fund balances 921,983$ 922,670$ 237,729$ 1,250,150$ 1,786,590$
138
General General General Tax
Obligation Obligation Obligation Tax Tax Increment Tax
Improvement Improvement Improvement Increment Increment Refunding Increment Total
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Debt
2019A 2020A 2021A 2016C 2016B 2015B 2013A Service
1,033,167$ 60,557$ 326,043$ -$ -$ -$ -$ 4,797,382$
323 - - - - - - 6,874
1,210,827 - 1,221,620 - - - - 4,167,403
2,244,317 60,557 1,547,663 - - - - 8,971,659
200 200 - 200 200 - 200 2,000
1,208,499 - 1,221,620 - - - - 4,160,508
1,035,618 60,357 326,043 (200) (200) - (200) 4,809,151
2,244,317$ 60,557$ 1,547,663$ -$ -$ -$ -$ 8,971,659$
139
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
DEBT SERVICE FUND BY ACCOUNT
For the Year Ended December 31, 2021
General General General General General
Obligation Obligation Obligation Obligation Obligation
Improvement Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds
2013B 2015A 2016A 2017A 2018A
REVENUES
Property taxes 382,389$ 252,889$ 211,337$ 282,785$ 250,614$
Special assessments 160,998 115,198 - 188,928 207,551
Investment earnings (net of fair value adjustment)(1,556) (1,166) (447) (1,644) (1,764)
Total revenues 541,831 366,921 210,890 470,069 456,401
EXPENDITURES
Debt service:
Principal 530,000 339,017 180,000 355,000 350,000
Interest 36,900 42,842 24,600 80,263 140,850
Fiscal agent fees 2,363 1,720 3,950 1,470 1,793
Total expenditures 569,263 383,579 208,550 436,733 492,643
Excess (deficiency) of revenues
over (under) expenditures (27,432) (16,658) 2,340 33,336 (36,242)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses)- - - - -
Net change in fund balances (27,432) (16,658) 2,340 33,336 (36,242)
Fund balances - January 1 837,543 618,682 235,189 808,429 932,546
Fund balances (deficits) - December 31 810,111$ 602,024$ 237,529$ 841,765$ 896,304$
140
General General General Tax
Obligation Obligation Obligation Tax Tax Increment Tax
Improvement Improvement Improvement Increment Increment Refunding Increment Total
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Debt
2019A 2020A 2021A 2016C 2016B 2015B 2013A Service
66,514$ 84,647$ -$ -$ -$ -$ -$ 1,531,175$
342,522 - 328,543 - - - - 1,343,740
(2,100) (43) (1,900) - - - - (10,620)
406,936 84,604 326,643 - - - - 2,864,295
175,000 - - 290,000 - - 2,140,000 4,359,017
155,425 22,847 - 16,258 46,825 - 103,438 670,248
2,585 1,400 600 850 850 - 900 18,481
333,010 24,247 600 307,108 47,675 - 2,244,338 5,047,746
73,926 60,357 326,043 (307,108) (47,675) - (2,244,338) (2,183,451)
- - - 305,858 46,425 - 2,243,137 2,595,420
- - - - - (1,500) - (1,500)
- - - 305,858 46,425 (1,500) 2,243,137 2,593,920
73,926 60,357 326,043 (1,250) (1,250) (1,500) (1,201) 410,469
961,692 - - 1,050 1,050 1,500 1,001 4,398,682
1,035,618$ 60,357$ 326,043$ (200)$ (200)$ -$ (200)$ 4,809,151$
141
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2013B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 385,222$ 385,222$ 382,389$
Special assessments 152,016 152,016 160,998
Investment earnings (net of fair value adjustment)4,000 4,000 (1,556)
Total revenues 541,238 541,238 541,831
EXPENDITURES
Debt service:
Principal 530,000 530,000 530,000
Interest 36,900 36,900 36,900
Fiscal agent fees 1,500 1,500 2,363
Total expenditures 568,400 568,400 569,263
Net change in fund balance (27,162) (27,162) (27,432)
Fund balance - January 1 837,543 837,543 837,543
Fund balance - December 31 810,381$ 810,381$ 810,111$
Budgeted Amounts
142
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2015A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 254,732$ 254,732$ 252,889$
Special assessments 107,835 107,835 115,198
Investment earnings (net of fair value adjustment)2,700 2,700 (1,166)
Total revenues 365,267 365,267 366,921
EXPENDITURES
Debt service:
Principal 339,017 339,017 339,017
Interest 42,842 42,842 42,842
Fiscal agent fees 1,500 1,500 1,720
Total expenditures 383,359 383,359 383,579
Net change in fund balance (18,092) (18,092) (16,658)
Fund balance - January 1 618,682 618,682 618,682
Fund balance - December 31 600,590$ 600,590$ 602,024$
Budgeted Amounts
143
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2016A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 212,940$ 212,940$ 211,337$
Investment earnings (net of fair value adjustment)700 700 (447)
Total revenues 213,640 213,640 210,890
EXPENDITURES
Debt service:
Principal 180,000 180,000 180,000
Interest 24,600 24,600 24,600
Fiscal agent fees 1,500 1,500 3,950
Total expenditures 206,100 206,100 208,550
Net change in fund balance 7,540 7,540 2,340
Fund balance - January 1 235,189 235,189 235,189
Fund balance - December 31 242,729$ 242,729$ 237,529$
Budgeted Amounts
144
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2017A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 284,784$ 284,784$ 282,785$
Special assessments 117,146 117,146 188,928
Investment earnings (net of fair value adjustment)4,400 4,400 (1,644)
Total revenues 406,330 406,330 470,069
EXPENDITURES
Debt service:
Principal 355,000 355,000 355,000
Interest 80,263 80,263 80,263
Fiscal agent fees 1,500 1,500 1,470
Total expenditures 436,763 436,763 436,733
Net change in fund balance (30,433) (30,433) 33,336
Fund balance - January 1 808,429 808,429 808,429
Fund balance - December 31 777,996$ 777,996$ 841,765$
Budgeted Amounts
145
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2018A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 252,462$ 252,462$ 250,614$
Special assessments 204,623 204,623 207,551
Investment earnings (net of fair value adjustment)5,000 5,000 (1,764)
Total revenues 462,085 462,085 456,401
EXPENDITURES
Debt service:
Principal 350,000 350,000 350,000
Interest 140,850 140,850 140,850
Fiscal agent fees 1,500 1,500 1,793
Total expenditures 492,350 492,350 492,643
Net change in fund balance (30,265) (30,265) (36,242)
Fund balance - January 1 932,546 932,546 932,546
Fund balance - December 31 902,281$ 902,281$ 896,304$
Budgeted Amounts
146
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2019A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 67,036$ 67,036$ 66,514$
Special assessments 322,566 322,566 342,522
Investment earnings (net of fair value adjustment)1,800 1,800 (2,100)
Total revenues 391,402 391,402 406,936
EXPENDITURES
Debt service:
Principal 175,000 175,000 175,000
Interest 155,425 155,425 155,425
Fiscal agent fees 1,500 1,500 2,585
Total expenditures 331,925 331,925 333,010
Net change in fund balance 59,477 59,477 73,926
Fund balance - January 1 961,692 961,692 961,692
Fund balance - December 31 1,021,169$ 1,021,169$ 1,035,618$
Budgeted Amounts
147
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2020A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Property taxes 83,472$ 83,472$ 84,647$
Investment earnings (net of fair value adjustment)- - (43)
Total revenues 83,472 83,472 84,604
EXPENDITURES
Debt service:
Interest 22,848 22,848 22,847
Fiscal agent fees 1,500 1,500 1,400
Total expenditures 24,348 24,348 24,247
Net change in fund balance 59,124 59,124 60,357
Fund balance - January 1 - - -
Fund balance - December 31 59,124$ 59,124$ 60,357$
Budgeted Amounts
148
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2021A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
REVENUES
Special assessments -$ -$ 328,543$
Investment earnings (net of fair value adjustment)- - (1,900)
Total revenues - - 326,643
EXPENDITURES
Debt service:
Fiscal agent fees - - 600
Net change in fund balance - - 326,043
Fund balance - January 1 - - -
Fund balance - December 31 -$ -$ 326,043$
Budgeted Amounts
149
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2016C
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Principal 290,000$ 290,000$ 290,000$
Interest 16,258 16,258 16,258
Fiscal agent fees 1,500 1,500 850
Total expenditures 307,758 307,758 307,108
Excess (deficiency) of revenues
over (under) expenditures (307,758) (307,758) (307,108)
OTHER FINANCING SOURCES
Transfers in 307,758 307,758 305,858
Net change in fund balance - - (1,250)
Fund balance - January 1 1,050 1,050 1,050
Fund balance (deficit) - December 31 1,050$ 1,050$ (200)$
Budgeted Amounts
150
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2016B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Interest 46,825$ 46,825$ 46,825$
Fiscal agent fees 1,500 1,500 850
Total expenditures 48,325 48,325 47,675
Excess (deficiency) of revenues
over (under) expenditures (48,325) (48,325) (47,675)
OTHER FINANCING SOURCES
Transfers in 48,325 48,325 46,425
Net change in fund balance - - (1,250)
Fund balance - January 1 1,050 1,050 1,050
Fund balance (deficit) - December 31 1,050$ 1,050$ (200)$
Budgeted Amounts
151
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT REFUNDING BONDS, 2015B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
OTHER FINANCING USES
Transfers out -$ -$ (1,500)$
Net change in fund balance - - (1,500)
Fund balance - January 1 1,500 1,500 1,500
Fund balance - December 31 1,500$ 1,500$ -$
Budgeted Amounts
152
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2013A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2021
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Principal 2,140,000$ 2,140,000$ 2,140,000$
Interest 103,438 103,438 103,438
Fiscal agent fees 1,500 1,500 900
Total expenditures 2,244,938 2,244,938 2,244,338
Excess (deficiency) of revenues
over (under) expenditures (2,244,938) (2,244,938) (2,244,338)
OTHER FINANCING SOURCES
Transfers in 2,244,938 2,244,938 2,243,137
Net change in fund balance - - (1,201)
Fund balance - January 1 1,001 1,001 1,001
Fund balance (deficit) - December 31 1,001$ 1,001$ (200)$
Budgeted Amounts
153
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154
CITY OF BROOKLYN CENTER, MINNESOTA
INTERNAL SERVICE FUNDS
Internal service funds are used to account for and report financial resources for the purchase of goods or services
provided by one department to other departments of the City on a cost reimbursement basis.
Central Garage
This fund was established to account for the acquisition and maintenance of all City vehicles and rolling stock
equipment. Vehicle and equipment maintenance and repair costs are charged to the departments as incurred.
Replacement costs are charged to the departments over the estimated useful life of the vehicles and equipment.
Employees (EE) Retirement Benefits
This fund accounts for certain health care insurance benefits for City employees who retire before age 65.
Substantially all of the City's full-time police and fire employees and all other full-time employeers hired
before July 1, 1989 may be eligible for those benefits from the time they qualify for an unreduced PERA
pension, until they reach age 65 or become eligible for Medicare. In the event that future costs would exceed
earnings, other funds would be charged for the costs associated with their employees.
Employees (EE) Compensated Absences
This fund accounts for payment of unused vacation and vested sick leave benefits, and the allocation of such
costs to the respective departments and funds of the City.
Pension - GERF
This fund was established to account for the net pension liability and related expense recorded with the adoption
of GASB Statement No. 68 related to the PERA Coordinated plan, and the allocation of such costs to the
respective departments and funds of the City.
Pension - PEPFF
This fund was established to account for the net pension liability and related expense recorded with the adoption
of GASB Statement No. 68 related to the PERA Police and Fire plan, and the allocation of such costs to the
repsective departments and funds of the City.
155
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2021
Central EE Retirement EE Comp
Garage Benefit Absences
ASSETS
Current assets:
Cash and cash equivalents 2,893,982$ (57,148)$ 1,342,231$
Receivables:
Accounts - net 18,738 - -
Due from other governments 7,301 - -
Prepaid items 14 - -
Inventories 25,096 - -
Total current assets 2,945,131 (57,148) 1,342,231
Noncurrent assets:
Capital assets:
Construction in progress 816,301 - -
Building and improvements 166,108 - -
Machinery and equipment 11,494,834 - -
Total capital assets 12,477,243 - -
Less: accumulated depreciation (7,073,215) - -
Net capital assets 5,404,028 - -
Total noncurrent assets 5,404,028 - -
Total assets 8,349,159 (57,148) 1,342,231
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources - - -
Deferred OPEB resources - 641,001 -
Total deferred outflows of resources - 641,001 -
LIABILITIES
Current liabilities:
Accounts payable 15,204 - -
Accrued salaries and wages 14,927 (10,001) -
Due to other governments 899 - -
Compensated absences payable - - 134,223
Current OPEB liability - 150,986 -
Total current liabilities 31,030 140,985 134,223
Noncurrent liabilities:
Compensated absences payable - - 1,208,008
Noncurrent OPEB liability - 2,528,959 -
Net pension liability - - -
Total noncurrent liabilities - 2,528,959 1,208,008
Total liabilities 31,030 2,669,944 1,342,231
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources - - -
Deferred OPEB resources - 71,188 -
Total deferred inflows of resources - 71,188 -
NET POSITION
Net investment in capital assets 5,404,028 - -
Unrestricted 2,914,101 (2,157,279) -
Total net position 8,318,129$ (2,157,279)$ -$
156
Total
Pension - Pension - Internal
GERF PEPFF Service
-$ -$ 4,179,065$
- - 18,738
- - 7,301
- - 14
- - 25,096
- - 4,230,214
- - 816,301
- - 166,108
- - 11,494,834
- - 12,477,243
- - (7,073,215)
- - 5,404,028
- - 5,404,028
- - 9,634,242
3,653,683 5,883,897 9,537,580
- - 641,001
3,653,683 5,883,897 10,178,581
- - 15,204
- - 4,926
- - 899
- - 134,223
- - 150,986
- - 306,238
- - 1,208,008
- - 2,528,959
5,150,160 3,211,852 8,362,012
5,150,160 3,211,852 12,098,979
5,150,160 3,211,852 12,405,217
4,877,943 8,329,995 13,207,938
- - 71,188
4,877,943 8,329,995 13,279,126
- - 5,404,028
(6,374,420) (5,657,950) (11,275,548)
(6,374,420)$ (5,657,950)$ (5,871,520)$
157
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2021
Central EE Retirement EE Comp
Garage Benefit Absences
OPERATING REVENUES
Sales and user fees 1,885,971$ 29,037$ 407,634$
OPERATING EXPENSES
Personal services 469,841 269,048 404,138
Supplies 389,569 - -
Other services 281,000 - -
Insurance 66,663 - -
Utilities 3,614 - -
Depreciation 927,530 - -
Total operating expenses 2,138,217 269,048 404,138
Operating income (loss)(252,246) (240,011) 3,496
NONOPERATING REVENUES (EXPENSE)
Intergovernmental - 15,549 -
Investment earnings (net of fair value adjustment)(5,133) - (3,496)
Gain on sale of capital assets 99,450 - -
Loss on sale of capital assets (30,157) - -
Other revenue 74,707 - -
Total nonoperating revenues (expense)138,867 15,549 (3,496)
Income (loss) before transfers (113,379) (224,462) -
Transfers out - - (108,410)
Change in net position (113,379) (224,462) (108,410)
Net position - January 1 8,431,508 (1,932,817) 108,410
Net position - December 31 8,318,129$ (2,157,279)$ -$
158
Total
Pension - Pension - Internal
GERF PEPFF Service
673,181$ 832,803$ 3,828,626$
43,026 (251,359) 934,694
- - 389,569
- - 281,000
- - 66,663
- - 3,614
- - 927,530
43,026 (251,359) 2,603,070
630,155 1,084,162 1,225,556
12,691 63,746 91,986
- - (8,629)
- - 99,450
- - (30,157)
- - 74,707
12,691 63,746 227,357
642,846 1,147,908 1,452,913
- - (108,410)
642,846 1,147,908 1,344,503
(7,017,266) (6,805,858) (7,216,023)
(6,374,420)$ (5,657,950)$ (5,871,520)$
159
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2021
Central EE Retirement EE Comp
Garage Benefit Absences
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,932,404$ 29,037$ 407,634$
Other operating receipts 74,707 - -
Payments for interfund services received (57,132) - -
Payments to suppliers (699,563) - -
Payments to employees (468,692) (159,283) (614,567)
Net cash flows provided (used) by
operating activities 781,724 (130,246) (206,933)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental - 15,549 -
Transfers out - (108,410)
Net cash flows provided (used) by
noncapital financing activities - 15,549 (108,410)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (2,723,988) - -
Proceeds from sale of assets 102,409 - -
Net cash flows provided (used) by capital
and related financing activities (2,621,579) - -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments (5,133) - (3,496)
Net increase (decrease) in cash and cash equivalents (1,844,988) (114,697) (318,839)
Cash and cash equivalents - January 1 4,738,970 57,549 1,661,070
Cash and cash equivalents - December 31 2,893,982$ (57,148)$ 1,342,231$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (252,246)$ (240,011)$ 3,496$
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Other income related to operations 74,707 - -
Depreciation 927,530 - -
(Increase) decrease in assets:
Accounts receivable 46,433 499 -
Inventories (4,144) - -
Prepaid items (14) - -
(Increase) decrease in deferred outflows of resources:
Deferred pension resources - (99,466) -
Increase (decrease) in liabilities:
Accounts payable (11,691) - -
Net pension liability - - -
Accrued salaries and wages 1,149 219,655 (210,429)
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - (10,923) -
Net cash provided (used) by operating activities 781,724$ (130,246)$ (206,933)$
NONCASH FINANCING ACTIVITIES
Loss on disposal of capital assets 30,157$ -$ -$
Capitalized loss on trade-in 52,000$ -$ -$
Capital asset trade-ins 160,000$ -$ -$
Grants deposited with pension plan -$ -$ -$
160
Total
Pension -Pension - Internal
GERF PEPFF Service
673,181$ 832,803$ 3,875,059$
- - 74,707
- - (57,132)
- - (699,563)
(673,181) (832,803) (2,748,526)
- - 444,545
- - 15,549
- - (108,410)
- - (92,861)
- - (2,723,988)
- - 102,409
- - (2,621,579)
- - (8,629)
- - (2,278,524)
- - 6,457,589
-$ -$ 4,179,065$
630,155$ 1,084,162$ 1,225,556$
12,691 63,746 151,144
- - 927,530
- - 46,932
- - (4,144)
- - (14)
(2,913,870) (2,835,059) (5,848,395)
- - (11,691)
(2,284,207) (2,594,410) (4,878,617)
- - 10,375
4,555,231 4,281,561 8,825,869
-$ -$ 444,545$
-$ -$ 30,157$
-$ -$ 52,000$
-$ -$ 160,000$
2,784$ 39,690$ 42,474$
161
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162
STATISTICAL SECTION
This part of the City of Brooklyn Center’s annual comprehensive financial report presents detailed
information as a context for understanding the financial statements, note disclosures, and supplementary
information. This section includes information for the primary government, including any blended
component units.
Contents Page
Financial Trends 164
These tables contain trend information to help the reader understand the
City’s financial performance by placing it in historical perspective.
Revenue Capacity 178
These tables contain information to help the reader assess the City’s most
significant “own-source” revenue, property taxes.
Debt Capacity 184
These tables present information to help the reader assess the affordability
of the government’s current levels of outstanding debt and the City’s ability
to issue debt in the future.
Demographic and Economic Information 191
These tables offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take
place.
Operating Information 193
These tables contain service and infrastructure data to help the reader
understand how the City’s financial report relates to the services the City
provides and the activities it performs.
Sources: unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial
reports for the relevant year.
163
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
Last ten fiscal years
(accrual basis of accounting)
2012 2013 2014 2015
Governmental activities
Net investment in capital assets 45,261,629$ 42,281,203$ 42,947,577$ 47,941,800$
Restricted 24,259,292 27,219,086 28,061,977 36,810,593
Unrestricted 5,875,289 11,205,289 12,357,196 (5,495,836)
Total governmental activities net position 75,396,210$ 80,705,578$ 83,366,750$ 79,256,557$
Business-type activities
Net investment in capital assets 42,406,210$ 42,466,488$ 48,537,132$ 47,201,239$
Unrestricted 11,856,924 12,208,126 6,819,765 8,452,630
Total business-type activities net position 54,263,134$ 54,674,614$ 55,356,897$ 55,653,869$
Primary government
Net investment in capital assets 87,667,839$ 84,747,691$ 91,484,709$ 95,143,039$
Restricted 24,259,292 27,219,086 28,061,977 36,810,593
Unrestricted 17,732,213 23,413,415 19,176,961 2,956,794
Total primary government net position 129,659,344$ 135,380,192$ 138,723,647$ 134,910,426$
Sources: The data for this table has been extracted from the respective years ACFR document.
The City implemented GASB Statement No. 68 and GASB No. 71 in fiscal 2015. Years prior to 2015 have not been restated.
The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated.
164
Table 1
2016 2017 2018 2019 2020 2021
48,358,875$ 53,152,985$ 52,794,327$ 52,560,591$ 54,471,240$ 57,524,408$
29,554,944 27,309,336 30,501,419 35,743,847 38,473,882 42,528,484
789,884 1,400,658 3,010,220 5,152,891 9,335,442 10,698,650
78,703,703$ 81,862,979$ 86,305,966$ 93,457,329$ 102,280,564$ 110,751,542$
43,483,294$ 43,553,672$ 42,831,977$ 43,450,307$ 43,786,262$ 44,340,339$
13,606,322 14,613,409 15,827,178 16,005,070 14,484,003 13,329,034
57,089,616$ 58,167,081$ 58,659,155$ 59,455,377$ 58,270,265$ 57,669,373$
91,842,169$ 96,706,657$ 95,626,304$ 96,010,898$ 98,257,502$ 101,864,747$
29,554,944 27,309,336 30,501,419 35,743,847 38,473,882 42,528,484
14,396,206 16,014,067 18,837,398 21,157,961 23,819,445 24,027,684
135,793,319$ 140,030,060$ 144,965,121$ 152,912,706$ 160,550,829$ 168,420,915$
165
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
Last ten fiscal years
(accrual basis of accounting)
2012 2013 2014 2015
GOVERNMENTAL ACTIVITIES
Expenses
General government 3,246,015$ 3,165,400$ 3,736,487$ 3,527,323$
Public safety 9,604,521 9,618,906 10,186,645 10,707,602
Public works 3,561,914 4,215,855 3,688,238 3,867,406
Community services 141,505 149,203 145,503 135,604
Parks and recreation 2,796,561 2,752,539 2,977,707 3,053,328
Economic development 5,438,372 3,833,915 3,234,623 5,419,304
Interest on long-term debt 768,241 490,162 887,190 723,000
Total expenses 25,557,129 24,225,980 24,856,393 27,433,567
Program Revenues
Charges for services:
General government 1,082,741 798,088 651,188 653,535
Public safety 1,402,204 786,828 722,697 548,669
Public works 270,680 5,879 157,889 226,645
Parks and recreation 897,592 650,522 598,173 564,217
Economic development 19,734 90,656 477,088 225,057
Operating grants and contributions 3,165,588 3,089,220 1,746,637 2,605,477
Capital grants and contributions 491,404 4,427,586 1,671,830 5,184,381
Total program revenues 7,329,943 9,848,779 6,025,502 10,007,981
Net (expense) / revenue (18,227,186) (14,377,201) (18,830,891) (17,425,586)
General Revenues and Transfers
Taxes:
Property 14,307,993 14,943,008 14,988,007 15,320,998
Tax increments 2,751,249 3,098,620 3,790,363 3,805,367
Lodging taxes 882,620 881,252 914,651 1,075,425
Unrestricted grants and contributions 496,679 590,916 1,499,015 1,670,928
Investment earnings (net)85,560 (81,438) 236,936 254,366
Gain on disposal of capital asset 113,976 54,211 27,100 27,800
Transfers 436 200,000 675,257 236,312
Transfers - capital assets - - (639,266) (1,034,574)
Total general revenues and transfers 18,638,513 19,686,569 21,492,063 21,356,622
Change in Net Position 411,327$ 5,309,368$ 2,661,172$ 3,931,036$
166
Table 2
Page 1 of 3
2016 2017 2018 2019 2020 2021
3,891,671$ 4,007,850$ 4,426,549$ 4,423,425$ 4,834,450$ 4,954,933$
13,222,625 12,438,818 11,757,362 12,706,644 13,057,043 12,251,370
4,099,559 4,542,244 6,501,746 12,787,805 6,450,769 12,756,066
136,349 143,103 164,544 181,159 171,344 210,488
3,183,198 2,995,396 3,234,386 3,827,299 3,218,266 3,859,928
6,825,271 1,917,039 2,543,381 2,146,011 2,872,886 2,192,700
654,205 540,799 693,575 666,343 634,139 565,379
32,012,878 26,585,249 29,321,543 36,738,686 31,238,897 36,790,864
563,744 530,459 483,572 476,377 412,993 360,099
656,642 683,172 1,047,683 1,030,980 808,885 560,771
79,987 46,359 464,254 259,675 13,451 3,681
635,597 608,590 593,692 754,408 408,515 620,839
417,332 296,103 212,847 260,155 303,046 103,408
2,323,913 1,716,671 3,872,109 9,562,139 2,607,134 8,572,992
4,061,903 1,407,482 3,435,074 3,148,710 3,148,955 4,152,875
8,739,118 5,288,836 10,109,231 15,492,444 7,702,979 14,374,665
(23,273,760) (21,296,413) (19,212,312) (21,246,242) (23,535,918) (22,416,199)
15,757,198 16,736,759 17,650,461 19,073,449 20,136,395 20,359,868
3,667,590 4,652,373 5,147,964 5,354,749 6,566,099 7,380,184
1,159,519 1,206,565 1,167,961 1,091,105 561,602 732,538
1,939,431 1,701,232 2,065,832 2,239,180 4,432,381 2,916,618
230,705 265,604 442,835 1,271,500 971,753 (100,702)
57,765 88,326 80,786 58,869 82,875 99,450
93,935 67,898 (782,750) 325,487 - -
(185,237) (263,068) 478,610 (1,016,734) (391,952) (500,779)
22,720,906 24,455,689 26,251,699 28,397,605 32,359,153 30,887,177
(552,854)$ 3,159,276$ 7,039,387$ 7,151,363$ 8,823,235$ 8,470,978$
167
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2012 2013 2014 2015
BUSINESS-TYPE ACTIVITIES
Expenses
Municipal liquor 1,274,375$ 5,674,937$ 5,690,792$ 5,816,363$
Golf course 273,023 263,425 271,698 270,307
Earle Brown Heritage Center 2,768,719 4,835,131 5,137,712 4,739,543
Water utility 1,855,345 2,025,496 1,900,518 2,179,892
Sanitary sewer utility 3,317,427 3,382,810 3,514,687 3,694,880
Storm drainage utility 1,501,652 1,552,327 1,784,907 1,883,154
Recycling utility 285,853 289,043 291,239 292,282
Street light utility 222,835 257,079 245,426 281,661
Total expenses 11,499,229 18,280,248 18,836,979 19,158,082
Program Revenues
Charges for services:
Municipal liquor 1,656,125 6,072,334 5,861,066 6,061,680
Earle Brown Heritage Center 2,293,386 4,294,723 4,578,433 4,649,162
Water utility 2,321,539 2,318,176 2,235,332 2,640,665
Sanitary sewer utility 3,592,530 3,675,936 3,942,534 4,095,017
Storm drainage utility 1,660,849 1,622,012 1,638,575 1,635,655
Other activities 853,585 882,995 1,127,116 988,038
Operating grants and contributions - 52,775 63,547 30,522
Capital grants and contributions - - - -
Total program revenues 12,378,014 18,918,951 19,446,603 20,100,739
Net (expense) / revenue 878,785 638,703 609,624 942,657
General Revenues and Transfers
Unrestricted grants and contributions - - - -
Investment earnings (net)32,998 (27,223) 108,650 127,686
Transfers (436) (200,000) (675,257) (236,312)
Transfers - capital assets - - 639,266 1,034,574
Total general revenues and transfers 32,562 (227,223) 72,659 925,948
Change in Net Position 911,347$ 411,480$ 682,283$ 1,868,605$
168
Table 2
Page 2 of 3
2016 2017 2018 2019 2020 2021
6,123,608$ 6,241,998$ 6,478,599$ 6,775,430$ 5,699,529$ 5,911,141$
309,910 335,029 333,768 - - -
4,507,406 4,825,489 4,874,026 5,242,416 3,034,695 2,670,277
2,903,198 3,294,345 3,670,089 4,148,609 4,377,809 4,452,157
3,864,514 4,068,468 4,213,511 4,546,350 4,551,331 4,499,797
1,700,515 1,848,887 1,959,195 2,407,046 2,441,109 2,437,706
291,980 366,608 385,811 410,610 396,402 403,057
272,072 267,069 274,252 333,744 306,619 389,853
19,973,203 21,247,893 22,189,251 23,864,205 20,807,494 20,763,988
6,206,584 6,503,094 6,745,617 6,860,482 5,503,163 5,905,844
4,731,876 4,917,167 4,858,384 5,068,900 1,309,634 1,442,635
3,216,506 3,585,597 3,888,716 3,819,747 4,261,455 4,680,155
4,210,081 4,288,655 4,406,741 4,555,940 4,662,764 4,681,779
1,620,452 1,598,624 1,681,733 1,680,454 1,691,946 1,770,889
1,088,695 1,071,232 1,119,322 871,838 871,261 880,863
16,481 - - - - -
106,488 - - 455,363 - 50,000
21,197,163 21,964,369 22,700,513 23,312,724 18,300,223 19,412,165
1,223,960 716,476 511,262 (551,481) (2,507,271) (1,351,823)
- - - - 449,232 300,000
120,485 165,819 258,591 656,456 480,975 (49,848)
(93,935) (67,898) 782,750 (325,487) - -
185,237 263,068 (478,610) 1,016,734 391,952 500,779
211,787 360,989 562,731 1,347,703 1,322,159 750,931
1,435,747$ 1,077,465$ 1,073,993$ 796,222$ (1,185,112)$ (600,892)$
169
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2012 2013 2014 2015
TOTAL PRIMARY GOVERNMENT
Expenses
Governmental activities 25,557,129$ 24,225,980$ 24,856,393$ 27,433,567$
Business-type activities 11,499,229 18,280,248 18,836,979 19,158,082
Total expenses 37,056,358 42,506,228 43,693,372 46,591,649
Program Revenues
Governmental activities 7,329,943 9,848,779 6,025,502 10,007,981
Business-type activities 12,378,014 18,918,951 19,446,603 20,100,739
Total program revenues 19,707,957 28,767,730 25,472,105 30,108,720
Net (expense) / revenue (17,348,401) (13,738,498) (18,221,267) (16,482,929)
General Revenues and Transfers
Governmental activities 18,638,513 19,686,569 21,492,063 21,356,622
Business-type activities 32,562 (227,223) 72,659 925,948
Total general revenues and transfers 18,671,075 19,459,346 21,564,722 22,282,570
Change in Net Position 1,322,674$ 5,720,848$ 3,343,455$ 5,799,641$
Sources: The data for this table has been extracted from the respective years ACFR document.
The City implemented GASB Statement No. 68 and GASB No. 71 in fiscal 2015. Years prior to 2015 have not been restated
The City implemented GASB Statement No. 75 in fiscal 2018. Years prior to 2018 have not been restated.
170
Table 2
Page 3 of 3
2016 2017 2018 2019 2020 2021
32,012,878$ 26,585,249$ 29,321,543$ 36,738,686$ 31,238,897$ 36,790,864$
19,973,203 21,247,893 22,189,251 23,864,205 20,807,494 20,763,988
51,986,081 47,833,142 51,510,794 60,602,891 52,046,391 57,554,852
8,739,118 5,288,836 10,109,231 15,492,444 7,702,979 14,374,665
21,197,163 21,964,369 22,700,513 23,312,724 18,300,223 19,412,165
29,936,281 27,253,205 32,809,744 38,805,168 26,003,202 33,786,830
(22,049,800) (20,579,937) (18,701,050) (21,797,723) (26,043,189) (23,768,022)
22,720,906 24,455,689 26,251,699 28,397,605 32,359,153 30,887,177
211,787 360,989 562,731 1,347,703 1,322,159 750,931
22,932,693 24,816,678 26,814,430 29,745,308 33,681,312 31,638,108
882,893$ 4,236,741$ 8,113,380$ 7,947,585$ 7,638,123$ 7,870,086$
171
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE Table 3
Last ten fiscal years
(accrual basis of accounting)
Property Tax Lodging
Taxes Increments Taxes Total
2012 14,307,993$ 2,751,249$ 882,620$ 17,941,862$
2013 14,943,008 3,098,620 881,252 18,922,880
2014 14,988,007 3,790,363 914,651 19,693,021
2015 15,320,998 3,805,367 1,075,425 20,201,790
2016 15,757,198 3,667,590 1,159,519 20,584,307
2017 16,736,759 4,652,373 1,206,565 22,595,697
2018 17,650,461 5,147,964 1,167,961 23,966,386
2019 19,073,449 5,354,749 1,091,105 25,519,303
2020 20,136,395 6,566,099 561,602 27,264,096
2021 20,359,868 7,380,184 732,538 28,472,590
Sources: The data for this table has been extracted from the respective years ACFR document.
172
This page has been left blank intentionally.
173
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
2012 2013 2014 2015
General Fund
Nonspendable 88,952$ 26,139$ 21,967$ 78,859$
Assigned - 2,754,124 908,761 804,815
Unassigned 10,597,944 9,602,450 10,089,353 10,287,243
Total general fund 10,686,896$ 12,382,713$ 11,020,081$ 11,170,917$
All other governmental funds
Nonspendable -$ -$ -$ 1,500$
Restricted 12,912,357 26,350,322 26,434,113 30,365,411
Committed 3,651,995 7,579,688 10,514,871 9,306,224
Assigned - - - -
Unassigned (3,425,001) (1,432,495) (1,763,877) (2,425,064)
Total all other governmental funds 13,139,351$ 32,497,515$ 35,185,107$ 37,248,071$
Sources: The data for this table has been extracted from the respective years ACFR document.
Note: The 2013 fund balances have been restated to align the City's reporting using GASB No. 65.
Note: The 2015 fund balances have been restated to align the City's reporting using GASB No. 68.
174
Table 4
2016 2017 2018 2019 2020 2021
92,388$ 105,634$ 82,309$ 86,479$ 84,002$ 69,152$
715,544 149,630 6,500 64,874 1,769,004 -
10,632,965 11,099,939 11,475,016 12,372,864 12,352,562 13,090,687
11,440,897$ 11,355,203$ 11,563,825$ 12,524,217$ 14,205,568$ 13,159,839$
1,500$ 7,976$ 8,163$ 1,630$ 1,701$ 4,374$
23,355,609 23,888,356 26,097,132 32,219,640 34,032,886 37,577,517
10,852,995 9,678,002 9,007,923 9,570,360 7,631,587 9,002,823
- 567,537 1,534,666 1,127,793 1,480,133 466,716
(1,783,271) (1,671,355) (1,372,348) (1,131,128) (216,217) (213,231)
32,426,833$ 32,470,516$ 35,275,536$ 41,788,295$ 42,930,090$ 46,838,199$
175
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
2012 2013 2014 2015
Revenues
Property taxes 14,389,842$ 15,094,464$ 15,036,602$ 15,115,171$
Tax increments 2,685,822 3,149,533 3,795,708 3,669,198
Franchise fees 647,346 651,832 647,071 653,648
Lodging taxes 882,620 881,252 914,651 1,075,425
Special assessments 1,294,521 1,877,116 1,794,126 1,715,159
Licenses and permits 858,593 1,084,003 1,021,410 859,534
Intergovernmental 3,607,218 3,159,571 2,706,299 4,748,476
Charges for services 1,056,241 1,073,917 1,229,513 967,707
Fines and forfeits 336,740 315,982 364,927 291,682
Investment earnings (net)48,322 (71,059) 188,913 203,172
Miscellaneous 742,269 423,822 344,690 429,575
Total revenues 26,549,534 27,640,433 28,043,910 29,728,747
Expenditures
General government 2,978,738 3,045,365 3,173,282 2,938,436
Public safety 9,090,324 9,117,541 9,622,239 10,004,475
Public works 1,982,540 1,982,311 2,107,959 2,031,813
Community services 141,505 149,203 145,503 135,604
Parks and recreation 2,532,827 2,481,763 2,457,622 2,790,624
Economic development 5,215,619 3,076,454 2,855,983 5,269,625
Nondepartmental 287,692 400,835 364,501 450,129
Capital outlay 699,563 4,319,756 3,950,187 10,475,770
Debt service
Principal 2,666,790 2,655,000 1,905,000 3,025,000
Interest 797,785 698,702 802,892 826,053
Other charges 7,677 179,044 9,039 127,218
Total expenditures 26,401,060 28,105,974 27,394,207 38,074,747
Excess (deficiency) of revenues
over (under) expenditures 148,474 (465,541) 649,703 (8,346,000)
Other financing sources (uses)
Transfers in 2,320,883 4,860,459 10,463,495 4,541,584
Issuance of debt - 10,960,000 - 10,016,248
Premium on issuance of debt - 367,405 - 309,809
Sale of capital assets 108,532 - - 4,820
Refunded bonds redeemed - - - -
Transfers out (2,320,447) (4,660,459) (9,788,238) (4,312,661)
Total other financing sources (uses)108,968 11,527,405 675,257 10,559,800
Restatements for: prior period adjustments
or change in accounting principle - 9,992,117 - -
Net change in fund balances 257,442$ 21,053,981$ 1,324,960$ 2,213,800$
Debt service as a percentage of
noncapital expenditures 13.48%14.10%11.55%13.95%
Sources: The data for this table has been extracted from the respective years ACFR document.
Note: The 2013 fund balances have been restated to align the City's reporting using GASB No. 65.
176
Table 5
2016 2017 2018 2019 2020 2021
15,906,488$ 16,728,993$ 17,677,601$ 19,026,811$ 20,100,796$ 20,413,021$
3,667,013 4,824,659 5,116,958 5,384,934 6,396,397 7,079,546
664,501 702,600 705,608 711,255 738,213 748,209
1,159,519 1,206,565 1,167,961 1,091,105 561,602 732,538
1,788,247 1,766,736 1,790,485 2,052,187 1,770,820 1,874,106
932,051 904,785 1,209,029 1,172,439 991,972 774,592
3,745,850 3,882,902 6,349,918 12,241,725 7,835,243 11,690,468
882,473 933,608 1,060,712 1,233,678 829,432 828,907
240,197 295,184 300,324 275,183 156,102 229,542
175,675 208,441 356,841 1,074,114 827,905 (92,073)
884,187 419,034 698,993 734,347 225,116 423,408
30,046,201 31,873,507 36,434,430 44,997,778 40,433,598 44,702,264
3,011,710 3,231,248 3,693,876 3,732,084 4,203,795 3,908,735
10,309,827 10,964,032 11,406,837 12,004,521 12,389,182 12,830,866
2,109,867 2,168,156 2,343,902 2,491,449 2,142,853 2,519,268
136,349 143,103 164,544 181,159 171,344 210,488
2,678,944 2,738,418 2,793,889 3,182,921 2,697,088 3,694,331
5,307,692 1,764,198 2,098,968 1,960,093 2,968,379 2,198,989
527,819 505,586 462,056 520,518 547,400 981,670
5,987,524 10,210,993 9,811,817 13,352,312 9,497,602 13,856,979
2,720,000 3,502,497 3,275,978 3,677,497 4,090,757 4,359,017
829,812 625,032 674,020 736,838 756,623 670,248
127,194 51,655 79,167 42,326 46,616 68,960
33,746,738 35,904,918 36,805,054 41,881,718 39,511,639 45,299,551
(3,700,537) (4,031,411) (370,624) 3,116,060 921,959 (597,287)
4,318,650 3,978,278 3,826,488 4,051,616 3,832,630 3,370,510
5,620,000 3,735,000 3,835,000 3,355,000 1,955,000 3,005,000
112,879 186,502 332,016 667,404 81,687 346,257
- - - 9,200 - -
(6,670,000) - - - - -
(4,232,250) (3,910,380) (4,609,238) (3,726,129) (3,968,130) (3,262,100)
(850,721) 3,989,400 3,384,266 4,357,091 1,901,187 3,459,667
- - - - - -
(4,551,258)$ (42,011)$ 3,013,642$ 7,473,151$ 2,823,146$ 2,862,380$
12.79%15.98%13.44%12.09%15.37%13.04%
177
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
2012 2013 2014 2015
Estimated actual value:
Real estate 1,633,327,900$ 1,506,661,400$ 1,497,679,200$ 1,648,833,600$
Personal property 16,139,200 18,257,700 18,319,800 18,829,900
Total estimated actual value 1,649,467,100$ 1,524,919,100$ 1,515,999,000$ 1,667,663,500$
Tax Capacity
Real estate 18,351,627$ 17,129,016$ 17,358,722$ 18,953,288$
Personal property 316,491 358,867 360,506 370,476
Contribution to fiscal disparities (2,619,012) (2,335,813) (2,495,133) (2,690,138)
Receipt from fiscal disparities 7,194,133 6,844,540 7,117,154 6,833,738
Tax increments (1,922,253) (2,169,035) (2,675,416) (2,764,303)
Net tax capacity for direct rate 21,320,986$ 19,827,575$ 19,665,833$ 20,703,061$
Net Tax Capacity as a Percentage
of Estimated Actual Market Value 1.29%1.30%1.30%1.24%
Property Tax Levies
General revenues 13,207,954$ 13,632,326$ 13,673,970$ 14,381,534$
Debt service 708,581 711,725 687,000 396,496
Housing and Redevelopment Auth.302,288 246,160 282,110 280,460
Total property taxes levied 14,218,823$ 14,590,211$ 14,643,080$ 15,058,490$
Tax Rates
General revenues 61.036 67.485 70.587 68.266
Debt service 3.323 3.590 3.547 1.760
Housing and Redevelopment Auth.1.457 1.128 1.609 1.230
Total Direct Tax Rate 65.816 72.202 75.742 71.256
Sources: The data for this table has been provided by Hennepin County.
178
Table 6
2016 2017 2018 2019 2020 2021
1,758,565,800$ 1,848,110,900$ 2,032,296,900$ 2,213,280,300$ 2,423,198,500$ 2,580,188,500$
20,237,100 22,039,201 22,289,300 20,965,000 24,978,300 26,330,300
1,778,802,900$ 1,870,150,101$ 2,054,586,200$ 2,234,245,300$ 2,448,176,800$ 2,606,518,800$
20,185,645$ 21,298,314$ 23,515,623$ 25,525,066$ 28,320,711$ 30,421,876$
398,267 435,044 440,046 412,752 489,976 517,001
(2,635,082) (2,833,028) (2,766,592) (3,196,246) (3,186,988) (3,804,245)
6,505,797 7,233,190 7,524,375 7,670,475 8,412,528 8,694,109
(2,884,208) (3,292,251) (3,592,531) (3,873,826) (4,795,248) (5,089,788)
21,570,419$ 22,841,269$ 25,120,921$ 26,538,221$ 29,240,979$ 30,738,953$
1.21%1.22%1.22%1.19%1.19%1.18%
14,728,750$ 15,344,946$ 15,963,823$ 17,034,997$ 18,402,263$ 19,532,363$
639,485 849,968 1,142,127 1,392,119 1,540,648 1,791,762
308,518 329,079 345,978 380,098 452,913 482,206
15,676,753$ 16,523,993$ 17,451,928$ 18,807,214$ 20,395,824$ 21,806,331$
68.788 66.798 62.589 65.116 60.361 59.738
2.987 3.700 4.478 5.284 4.872 5.002
1.517 1.406 1.365 1.460 1.356 1.520
73.292 71.904 68.432 71.860 66.589 66.260
179
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
Overlapping Rates
Operating Debt Service Total Direct School School School School Metro Other
Rate Rate Rate County District 11 District 279 District 281 District 286 Districts (1)Districts (2)
2012 62.493 3.323 65.816 48.231 23.325 24.930 32.810 48.020 3.084 6.439
2013 68.613 3.590 72.202 49.461 26.801 27.973 32.347 56.031 3.242 6.847
2014 72.195 3.547 75.742 49.858 28.471 30.128 35.081 54.563 3.335 7.226
2015 69.495 1.760 71.256 46.398 22.695 27.450 33.511 53.097 3.006 6.779
2016 70.305 2.987 73.292 45.356 21.105 26.545 34.115 54.720 2.899 6.631
2017 68.204 3.700 71.904 44.087 18.805 27.005 31.861 40.559 2.821 6.498
2018 63.954 4.478 68.432 42.808 18.651 25.187 32.191 46.271 2.683 6.290
2019 66.576 5.284 71.860 41.661 16.545 24.729 29.450 49.744 2.529 5.981
2020 61.717 4.872 66.589 41.084 16.893 22.008 26.447 47.372 2.461 5.758
2021 61.258 5.002 66.260 38.210 16.325 22.355 25.770 46.178 2.268 5.545
Sources: The data for this table has been provided by Hennepin County.
Note (1) - Metro Districts include: Mosquito Control, Metropolitan Council, and Metro Transit
Note (2) - Other Districts include: Hennepin Parks, Park Museum, Regional Railroad Authority, and Hennepin HRA.
Note (3) - The Watershed levies are applicable to all of School Districts 279 & 281, and portions of School Districts 11 & 286.
City Direct Rate
180
Table 7
Total Direct and Overlapping Rates
Watershed Watershed ISD 11 &ISD 11 &ISD 286 &ISD 286 &
Districts A(3) Districts B(3)ISD 11 Watershed A (3)Watershed B (3)ISD 279 ISD 281 ISD 286 Watershed A (3)Watershed B (3)
0.001 0.001 146.895 146.896 146.896 148.501 156.381 171.590 171.591 171.591
0.101 0.101 158.553 158.654 158.654 159.826 164.200 187.783 187.884 187.884
0.101 0.322 164.632 164.733 164.954 166.391 171.343 190.724 190.825 191.046
0.256 0.107 150.133 150.389 150.240 155.145 161.205 180.536 180.792 180.643
0.247 0.072 149.283 149.530 149.355 154.970 162.540 182.898 183.145 182.970
0.267 0.223 144.115 144.382 144.338 152.582 157.438 165.869 166.136 166.092
0.079 0.119 138.864 138.943 138.983 145.479 152.483 166.484 166.563 166.603
0.332 0.134 138.576 138.908 138.710 147.092 151.813 171.775 172.107 171.909
0.157 0.060 132.785 132.942 132.845 138.057 142.496 163.264 163.421 163.324
0.843 0.348 128.608 129.451 128.956 135.481 138.896 158.461 159.304 158.809
181
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS Table 8
Current Year and Nine Years Ago
2021 2012
Percentage of Percentage of
Net Tax Total Tax Net Tax Total Tax
Taxpayer Classification Capacity Rank Capacity Value Capacity Rank Capacity Value
The Luther Company, LLP Commercial 719,700$ 1 2.34%408,521$ 1 1.92%
The Molasky Group Governmental 505,250 2 1.64%
Marvin F Poer and Company Commercial 408,690 3 1.33%
Lake Point, LLC Apartment 322,313 4 1.05%
TLN Lanel Ltd Apartment 320,600 5 1.04%
Brooklyn Hotel Partners Commercial 312,250 6 1.02%
Medtronic, Inc.Industrial 310,250 7 1.01%182,250 8 0.85%
G B Homes LLC Commercial 291,850 8 0.95%
Brookdale Corner, LLC Commercial 288,730 9 0.94%188,250 7 0.88%
Melrose Gates LLC Apartments 250,113 10 0.81%
Twin Lakes LLC Apartments 376,700 2 1.77%
Lang-Nelson Commercial 283,913 3 1.33%
Regal Cinemas, Inc.Commercial 239,758 4 1.12%
BCC Associates Commercial 219,250 5 1.03%
CSM Freeway Airport, LLC Commercial 191,470 6 0.90%
Target Commercial 179,650 9 0.84%
Shingle Creek LLC Commercial 156,650 10 0.74%
Totals 3,729,746$ 12.13%2,426,412$ 11.38%
Sources: The data for this table has been provided by Hennepin County.
182
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS Table 9
Last ten fiscal years
Collected within the
Certified Fiscal Year of the Levy Collections in Total Collections to Date
Property Percentage Subsequent Percentage
Tax Levy Amount of Levy Years Amount to Date
2012 14,218,823$ 13,942,766$ 98.1% 275,291$ 14,218,057$ 100.0%
2013 14,590,211 14,472,075 99.2% 118,136 14,590,211 100.0%
2014 14,643,080 14,470,227 98.8% 172,853 14,643,080 100.0%
2015 15,058,490 14,815,657 98.4% 242,833 15,058,490 100.0%
2016 15,676,753 15,563,707 99.3%95,744 15,659,451 99.9%
2017 16,523,993 16,411,246 99.3% 112,747 16,523,993 100.0%
2018 17,451,928 17,356,168 99.5%82,580 17,438,748 99.9%
2019 18,807,214 18,673,395 99.3%99,487 18,772,882 99.8%
2020 20,395,824 20,262,005 99.3% 133,819 20,395,824 100.0%
2021 21,806,331 21,606,459 99.1%- 21,606,459 99.1%
Sources: The data for this table has been provided by Hennepin County and from City financial documents.
Note: The components of the Certified Property Tax Levy can be viewed in table 6 of the statistical section.
183
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE Table 10
Last ten fiscal years
Governmental Activities
General Tax G.O.Bond Utility Lease Utility G.O.Bond Percentage
Obligation Increment Improvement Premiums Revenue Revenue Revenue Improvement Premiums Total of Personal Per
Bonds Bonds Bonds (Discounts)Notes (PFA)Bonds Bonds Bonds (Discounts)Debt Income Capita
2012 700,000$ 12,795,000$ 2,590,000$ (68,643)$ -$ -$ 2,075,000$ -$ (20,367)$ 18,070,990$ 1.00%591$
2013 - 17,470,000 6,920,000 198,657 - - 1,940,000 - (18,800) 26,509,857 1.44%871
2014 - 16,040,000 6,445,000 106,966 - - 1,800,000 - (29,767) 24,362,199 1.28%815
2015 - 20,885,000 8,591,248 418,858 17,545,158 - 1,660,000 1,823,752 47,000 50,971,016 2.53%1,651
2016 - 16,180,000 9,526,248 546,888 18,663,445 - 5,125,000 1,823,752 191,851 52,057,184 2.47%1,667
2017 - 14,220,000 11,718,751 660,254 17,709,445 - 9,585,000 1,646,249 417,622 55,957,321 2.60%1,797
2018 - 11,945,000 14,552,773 903,685 16,746,445 - 13,465,000 1,472,227 747,050 59,832,180 2.60%1,852
2019 - 9,650,000 16,525,276 1,463,854 15,773,445 2,520,000 17,350,000 1,294,724 1,883,170 66,460,469 2.70%2,031
2020 - 7,300,000 16,739,519 1,405,244 14,791,445 2,520,000 18,905,000 1,115,481 1,917,557 64,694,246 2.58%1,915
2021 - 4,870,000 17,815,502 1,595,587 13,799,445 2,420,000 22,350,000 934,498 2,303,519 66,088,551 2.47%1,956
Sources: The data for this table has been provided from City financial documents.
Note: More detailed information for Population and Personal Income can be viewed in table 15 of the statistical section.
Business-Type Activities
184
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 11
Last ten fiscal years
Percentage of
General Plus: Net Premium Less: Amounts Net General Estimated
Obligation (Discount) on General Restricted to Obligation Market Value Per
Bonds Obligation Bonds Debt Service Debt of Property Capita
2012 16,085,000$ (68,643)$ 1,186,758$ 14,829,599$ 0.90%485$
2013 24,390,000 198,657 1,190,972 23,397,685 1.53%769
2014 22,485,000 106,966 1,909,441 20,682,525 1.36%692
2015 29,476,248 418,858 8,747,914 21,147,192 1.27%685
2016 25,706,248 546,888 1,876,481 24,376,655 1.37%781
2017 25,938,751 660,254 1,909,441 24,689,564 1.32%793
2018 26,497,773 903,685 2,816,343 24,585,115 1.20%761
2019 26,175,276 1,463,854 3,991,322 23,647,808 1.06%723
2020 24,039,519 1,405,244 4,398,682 21,046,081 0.86%623
2021 22,685,502 1,595,587 4,809,151 19,471,938 0.75%576
Sources: The data for this table has been provided from City financial documents.
Note: More detailed information for Population can be viewed in table 15 of the statistical section.
Note: More detailed information for Estimated Property Values can be viewed in table 6 of the statistical section.
185
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING Table 12
GOVERNMENTAL ACTIVITIES DEBT
December 31, 2021
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable Debt
Overlapping debt:
School Districts:
No. 11 Anoka 251,620,000$ 5.93%14,918,550$
No. 279 Osseo 150,885,000 4.01%6,050,489
No. 281 Robbinsdale 198,980,000 5.16%10,267,368
No. 286 Brooklyn Center 46,194,000 100.00%46,194,000
Metropolitan Council 193,320,000 0.62%1,198,584
Hennepin County 1,053,595,000 1.28%13,486,016
Hennepin Regional RR Authority 90,580,000 1.28%1,159,424
Three Rivers Park District 52,890,000 1.82%962,598
Total overlapping debt 2,038,064,000$ 94,237,028
City of Brooklyn Center direct debt 24,281,089
Total direct and overlapping debt 118,518,117$
Source: Hennepin County Taxpayer Services Department
Note: More detailed information for the City's outstanding debt can be viewed in table 10 of the statistical section.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of
the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident, and therefore responsible for repaying the debt, of each overlapping government.
Note: The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated
by determining the portion of each entity's tax capacity that is within the City's boundaries, and dividing it by the entity's
total tax capacity.
186
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187
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
2012 2013 2014 2015
Taxable Market Value 1,468,159,885$ 1,338,405,415$ 1,329,268,428$ 1,489,548,076$
Debt Limit Percentage 3.00%3.00%3.00%3.00%
Debt Limit 44,044,797 40,152,162 39,878,053 44,686,442
Total net debt applicable to limit - - - -
Legal debt margin 44,044,797$ 40,152,162$ 39,878,053$ 44,686,442$
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%
Sources: The data for this table has been provided by Hennepin County and from City financial documents.
188
Table 13
2016 2017 2018 2019 2020 2021
1,585,423,689$ 1,677,496,115$ 1,870,350,254$ 2,060,074,358$ 2,280,312,601$ 2,468,226,455$
3.00%3.00%3.00%3.00%3.00%3.00%
47,562,711 50,324,883 56,110,508 61,802,231 68,409,378 74,046,794
- - - - - -
47,562,711$ 50,324,883$ 56,110,508$ 61,802,231$ 68,409,378$ 74,046,794$
0.00%0.00%0.00%0.00%0.00%0.00%
189
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE Table 14
Last ten fiscal years
Special Assessment Bonds
Special Net
Assessment Property Tax Available Debt Service
Collections Collections Revenue Principal Interest Coverage
2012 561,618$ 704,454$ 1,266,072$ 670,000$ 111,460$ 162.01%
2013 485,034 703,019 1,188,053 590,000 88,870 175.00%
2014 674,253 678,966 1,353,219 475,000 160,447 212.96%
2015 1,120,946 389,705 1,510,651 1,270,000 187,221 103.67%
2016 797,089 632,692 1,429,781 885,000 228,423 128.41%
2017 1,040,491 842,093 1,882,584 1,542,497 221,044 106.75%
2018 1,138,317 1,137,519 2,275,836 1,000,978 304,587 174.32%
2019 1,547,331 1,383,180 2,930,511 1,382,497 434,643 161.27%
2020 1,143,880 1,456,676 2,600,556 1,740,757 521,278 114.97%
2021 1,343,740 1,531,175 2,874,915 1,929,017 503,727 118.18%
Tax Increment Bonds
Tax Increment Debt Service
Collections Principal Interest Coverage
2012 2,388,702$ 925,000$ 651,744$ 151.50%
2013 2,766,160 1,365,000 598,107 140.91%
2014 3,038,983 1,430,000 642,445 146.64%
2015 2,953,728 1,755,000 638,832 123.39%
2016 2,969,836 1,835,000 601,389 121.89%
2017 4,500,329 1,960,000 403,988 190.37%
2018 4,757,113 2,275,000 369,433 179.89%
2019 5,047,023 2,295,000 434,643 194.33%
2020 5,732,249 2,350,000 235,345 221.72%
2021 6,730,486 2,430,000 166,521 259.21%
Utility Revenue Bonds
Water, Sewer,
and Storm Less:Net
Utility Operating Available Debt Service
Charges Expenses Revenue Principal Interest Coverage
2012 5,889,769$ 5,084,012$ 805,757$ 135,000$ 81,562$ 372.07%
2013 5,951,703 5,335,477 616,226 135,000 80,188 286.37%
2014 6,151,426 5,334,905 816,521 140,000 76,902 376.45%
2015 6,667,218 5,665,327 1,001,891 1,815,352 238,401 48.78%
2016 9,016,802 8,194,267 822,535 1,084,000 226,543 62.76%
2017 9,429,371 8,943,670 485,701 1,296,503 211,072 32.22%
2018 9,895,247 9,272,926 622,321 1,607,022 532,724 29.08%
2019 9,997,139 10,407,257 (410,118) 2,055,503 736,877 -14.69%
2020 10,560,571 10,594,886 (34,315) 2,436,243 803,141 -1.06%
2021 11,061,697 10,715,119 346,578 2,732,983 832,882 9.72%
Lease Revenue Bonds
Liquor Less:Net
Gross Operating Available Debt Service
Margin Expenses Revenue Principal Interest Coverage
2020 1,501,357$ 1,590,440$ (89,083)$ -$ 75,674$ -117.72%
2021 1,426,555 1,756,432 (329,877) 100,000 85,050 -178.26%
Sources: The data for this table has been provided from City financial documents.
190
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15
Last ten fiscal years
School Enrollments
Per Capita No. 286
No. of Personal Personal Unemployment Median No. 11 No. 279 No. 281 Brooklyn
Population Households Income Income Rate Age Anoka Osseo Robbinsdale Center
2012 30,569 10,812 1,800,452,962$ 58,898$ 7.2%33.1 38,403 20,623 12,181 2,177
2013 30,426 10,862 1,843,846,026 60,601 6.1%33.3 38,183 20,689 12,266 2,182
2014 29,889 10,756 1,909,936,989 63,901 4.8%32.3 37,853 20,398 12,385 2,399
2015 30,864 10,994 2,013,289,584 65,231 4.6%32.8 38,016 20,511 12,714 2,401
2016 31,231 11,042 2,105,812,637 67,427 4.3%32.3 38,739 20,847 12,553 2,415
2017 31,145 11,063 2,155,919,190 69,222 3.9%32.1 38,764 21,221 12,553 2,566
2018 32,299 11,289 2,297,783,159 71,141 3.3%31.8 38,802 21,472 12,546 2,492
2019 32,722 11,318 2,457,847,586 75,113 3.6%31.9 39,057 21,509 12,388 2,350
2020 33,782 11,309 2,504,934,544 76,552 8.7%31.9 37,719 20,672 11,692 2,333
2021 33,782 11,309 2,674,960,106 79,183 5.8%31.9 38,230 20,609 11,362 2,167
Sources: Population & Households - Metropolitan Council
Personal Income - Calculated by the City
Per Capita Personal Income - US Department of Commerce; Bureau of Economic Analysis
Unemployment Rate - Minnesota Department of Employment and Economic Development
Median Age - US Department of Commerce, Bureau of the Census
School Enrollment - Minnesota Department of Education
191
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL EMPLOYERS Table 16
Current Year and Nine Years Ago
2021 2012
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Hennepin County 9,300 * 1 61.53%
Promeon Inc., A Division of Medtronic 1,100 2 7.28%1,100 1 7.18%
Luther Auto Group 555 3 3.67%400 2 2.61%
Independent School District #286 396 4 2.62%385 3 2.51%
City of Brooklyn Center 342 5 2.26%160 8 1.04%
Wal-Mart 278 6 1.84%300 4 1.96%
University of Minnesota Physicians 212 7 1.40%
Caribou Coffee Headquarters 200 8 1.32%250 5 1.63%
Presbyterian Homes, Marantha Care Center 200 8 1.32%
TCR Corporation 150 10 0.99%
FBI Field Office 250 5 1.63%
Independent School District #279 185 7 1.21%
TCF Call Center 150 9 0.98%
Target 150 9 0.98%
Totals 12,733 84.25%3,330 21.73%
* Not all employees located in Brooklyn Center
Sources: The data for this table has been extracted from Official Statements for bonds issued in 2012 and 2021.
192
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Table 17
Last ten fiscal years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government
Administrative 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Elections 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
City Clerk 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Finance 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Assessor 3.0 3.5 3.5 - - - - - - -
Human Resources 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0
Communications and Engagement - - - - - 1.0 1.0 1.0 2.0 2.0
Information technology 2.0 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 3.0
Building Maintenance 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Total general government 21.0 21.5 21.5 18.0 18.0 20.0 20.5 20.0 22.0 22.0
Public safety
Police
Administration 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Investigation 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
Patrol 42.0 42.0 41.0 41.0 40.0 42.0 42.0 42.0 42.0 41.5
Support Services 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0
Facility Maintenance 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Fire 1.0 1.0 1.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0
Emergency Preparedness 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Total public safety 63.0 63.0 62.0 63.0 63.0 65.0 65.0 65.0 65.0 64.5
Community Development
Community Development Admin - - - - - - 2.3 2.3 2.3 2.3
Business Development - - - - - - 1.2 1.2 2.2 2.3
Planning & Zoning 1.5 1.5 1.5 1.5 1.2 1.2 - - - -
Inspections 4.0 4.0 5.0 5.0 5.2 4.2 - - - -
Code Enforcement 4.0 5.0 5.0 4.0 3.4 4.4 - - - -
Building and Community Standards - - - - - - 8.5 8.5 8.5 8.5
Total Community Development 9.5 10.5 11.5 10.5 9.8 9.8 12.0 12.0 13.0 13.0
Public works
Engineering & Admin 6.0 7.0 7.0 7.0 7.0 7.0 7.0 8.0 8.0 7.0
Street Maintenance 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 6.0 6.0
Traffic Control 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Total public works 15.0 16.0 16.0 16.0 16.0 16.0 16.0 17.0 16.0 15.0
Parks and recreation
Administration 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Recreation Programs 4.0 4.0 4.0 4.0 4.0 4.0 5.0 5.0 5.0 6.0
Parks Maintenance 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 7.0 7.0
Golf Course 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Forestry 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Total park and recreation 13.0 13.0 13.0 13.0 13.0 13.0 14.0 15.0 16.0 17.0
Economic Development 2.5 2.5 2.5 2.5 2.2 2.2 2.0 2.0 2.0 2.0
Municipal Liquor 4.0 5.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0
Earle Brown Heritage Center 11.0 11.0 12.0 12.0 13.0 13.0 13.0 14.0 16.0 16.0
Water 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3
Sanitary Sewer 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3
Storm Drainage 2.4 2.4 2.4 2.4 2.4 2.4 2.4 3.4 3.4 3.4
Central Garage 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0
Total 155.0 158.5 159.5 156.0 157.0 161.0 164.5 167.0 172.0 172.5
Sources: The data for this table has been extracted from the respective years budget document.
193
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
OPERATING INDICATORS BY FUNCTION Table 18
Last ten fiscal years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Violent crimes 113 129 97 113 112 125 118 109 134 184
Property crimes 1,561 1,712 1,195 1,080 1,076 1,087 1,070 1,231 1,284 1,173
Total calls for service 39,736 37,370 35,914 34,997 35,558 37,041 37,658 38,370 36,420 32,959
Fire
Fires/All other calls 781 634 844 769 824 726 700 798 447 830
Medical calls 1,209 1,209 1,263 1,212 1,348 742 720 824 772 887
Fire inspections performed 295 270 197 9 33 140 225 281 614 802
Streets
Total miles 105.73 105.73 105.73 105.73 105.73 105.73 105.73 105.73 106.06 106.06
Miles of streets reconstructed 0.70 2.90 3.01 3.91 2.74 5.57 4.00 7.00 4.40 5.47
Parks and recreation
Community Center Admissions 59,550 62,434 56,142 31,882 50,944 55,418 55,734 53,490 16,065 29,812
Acres of park maintained 527 527 527 527 527 527 527 527 527 527
Municipal liquor
Number of stores 2 2 2 2 2 2 2 2 2 2
Sales (in thousands)$5,964 $6,063 $5,852 $6,057 $6,197 $6,495 $6,744 $6,856 $5,573 $5,556
Golf course
Rounds sold 12,875 11,724 11,023 12,359 12,601 11,960 11,106 11,883 14,930 16,046
Earle Brown Heritage Center
Bookings 460 397 409 374 375 371 510 1,066 206 101
Functions 1,053 1,082 1,014 935 955 861 782 994 214 148
Water
Connections 8,894 8,896 8,909 8,927 8,933 8,942 8,962 8,969 8,969 9,014
Miles of water mains 121.80 119.70 119.87 119.40 121.10 121.40 121.40 121.00 121.80 121.80
Average daily consumption 3,196,072 3,000,378 2,819,874 2,794,874 2,927,562 3,067,362 2,949,468 2,747,411 2,786,633 2,979,769
Sanitary sewer
Connections 8,813 8,783 8,789 8,788 8,788 8,769 8,774 8,748 8,748 8,447
Miles of sanitary sewer 105.61 105.61 105.61 97.51 98.40 98.40 98.40 98.00 98.60 98.52
Sources: The data for this table has been provided by each respective City department.
194
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CAPITAL ASSET STATISTICS BY FUNCTION Table 19
Last ten fiscal years
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units
Marked squads 9 10 10 10 10 11 11 12 12 12
Other vehicles 16 18 18 18 18 18 18 18 18 18
Fire
Stations 2 2 2 2 2 2 2 2 2 2
Fire trucks 8 8 8 8 8 8 8 8 8 8
Other vehicles 3 3 3 5 5 5 6 5 5 5
Public works
Streets (miles)105.73 105.73 105.73 105.73 105.73 105.73 105.73 105.73 106.06 106.06
Mobile equipment 14 13 14 14 14 14 14 14 14 14
Heavy duty trucks 13 12 13 13 13 13 13 14 14 14
Other vehicles 6 7 6 4 5 4 4 4 4 4
Parks and recreation
Parks acreage 527 527 527 527 527 527 527 527 527 527
Trails (miles)21.6 21.6 14.2 14.9 15.3 15.7 15.7 16.6 16.6 16.1
Community centers 1 1 1 1 1 1 1 1 1 1
Ground maintenance equipment 15 14 12 11 11 11 11 12 12 12
Other vehicles 8 8 8 8 8 8 8 8 8 8
Water
Water mains (miles)121.80 119.70 119.87 119.40 121.10 121.40 121.40 121.00 121.80 121.80
Wells 9 9 9 9 9 9 9 9 9 9
Water treatment plant - - - - 1 1 1 1 1 1
Sewer
Sanitary sewers (miles)105.61 105.61 105.61 97.51 98.40 98.40 98.30 98.00 98.60 98.52
Lift Stations 10 10 10 10 10 10 10 10 10 10
Storm sewers (miles)74.20 83.01 84.55 86.28 88.18 88.60 90.00 90.16 91.30 92.46
Sources: The data for this table has been provided by each respective City department.
195
6/6/2022
1
Brooklyn Center
Liquor Store #2 Project Work Session
October 8, 2018
Review
City Council Work Session, June 6, 2022
Andrew Splinter, Finance Director
Tonight’s Worksession
•October 8, 2018
•Andy will provide framework for discussion, project timeline and
present overview
•Tom will review market share areas, potential sites for new store
•Latoya will speak to the impact on the community, proximity to
church and school
•Meg will describe how the construction of Liquor Store No.2 can
provide leverage for additional development (office condos)
2
6/6/2022
2
Background
•October 8, 2018
•Why Municipal Liquor?
•Allows the City to limit the number of liquor stores within the City and dictate
their location
•Profits from Liquor store provide Property Tax Relief through reduced Capital
Project Bonding
3
Project Timeline
•October 8, 2018
•Design Phase will take approximately 4 months
•we have missed the window for the 2022 construction season
•Design Phase must be underway by September 1, 2022 to capitalize on entire
2023 construction season
•Bid Awarded January/February 2023
•Project Completion January/February 2024
•Current lease expires on 12‐31‐23
4
6/6/2022
3
Tom – Market Reach
5
In 2018 we had Shenehon conduct a
consulting analysis. They identified 3
trade sectors for our liquor stores.
Southern sector contains Store #1
Per capita liquor spending $400‐$500
Northwest sector contains Store#2
Per capita liquor spending $200‐$300
Northeast sector future store
Per capita spending $750‐$1000
Potential Site for New Store
•Main concern for new store was visibility, current location
is setback from Brooklyn Blvd and somewhat hidden due
to the location of Culvers, Speedway, and surrounding
businesses
•Accessibility with easy in and out access from Brooklyn
Boulevard
•Security – lighting at leased location is not sufficient in
parking lot
6
6/6/2022
4
Potential Site for New Store
•Reviewed sites on Brooklyn Boulevard owned by EDA for
any opportunities to utilize existing City assets
•Site at 70th Ave N and Brooklyn Boulevard is ideal for
visibility and access
•To maximize EDA investment, leverage liquor store
construction to meet other EDA goals of creating more
commercial space for local businesses and wealth building
7
Community Impact
•St Alphonsus Catholic school, Church and community playground are
approximately 588 feet from Liquor Store #2. A Parking lot and a residential
street separate the building structures.
•65%‐73% of residents in the immediate area of liquor store #2 are non‐white
community members, per the 2010 Census tract.
8
6/6/2022
5
Safety, Visibility and Health
•Within the past one year 118 incidents that required police assistance
occurred in the immediate area of liquor store #2.
•24 Police responses to Liquor store #2 vs surrounding residences and
establishments.
•Prior installed standard lighting requirements most likely do not meet
current community standard recommendations proposed by CPETD
(Crime Prevention Through Environmental Design, Lighting for Safety).
•Outdoor garage removal and poor sewage drainage pose a health risk
for staff and community
9
Planning and EDA
•Zoning Considerations
•City and EDA‐owned
Parcels within the market
share area
•Available commercial
land/space within the
market share
•Leverage land to meet
EDA strategic priorities
10
6/6/2022
6
Office Condominiums
•A recent market study conducted for the Brooklyn Boulevard study found
that office condominiums would be a desired and feasible product type
along the corridor
•The EDA has a strategic priority around Business Economic Stability –
which includes providing stable bricks and mortar opportunities for local
businesses and wealth building
•The site offers an opportunity to develop 6‐8 office condo units that can
be sold by the EDA with a scoring system that favors local entrepreneurs
•Due diligence is underway to determine the financial feasibility of the
office condo concept
•The goal of the initiative would be for the EDA to recoup any development
expenses through the sale of the units
11
Initial
Site
Plan
12
6/6/2022
7
Next Steps
City Staff is seeking approval to proceed with seeking proposals for
architectural and engineering services related to construction of new
Liquor Store Number 2 and additional office condominium space at the
corner of Brooklyn Boulevard and 70th Ave North.
13
Questions?
14