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J une 7, 2021
AGE NDA
1.C all to Order - 6:30 p.m.
The C ity Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet is available to the public. The packet ring binder is located
at the entrance of the c ouncil chambers.
2.Roll Call/Introductions
3.P resentation of Audit Report and M anagement Letter
a.P resentation of Audit Report
4.C ouncil/Commission Questions
5.S taff Overview of C omprehensive Annual F inancial Report
6.C ouncil/Commission Questions
7.M iscellaneous
8.Adjourn
COU N C IL ITEM M EM ORAN D UM
DAT E:6/7/2021
TO :Dr. R eggie Ed wards, Acting C ity Manager
T HR O UG H:N/A
F R O M:Mark Ebens teiner, F inanc e Direc to r
S UBJ E C T:P res entation of Aud it R eport
B ackground:
AT TAC HME N T S :
Desc rip tion Up lo ad Date Typ e
P resentatio n 6/4/2021 P res entation
P resentatio n 6/4/2021 P res entation
B C Management R ep o rt 6/4/2021 Bac kup Material
B C S pec ial P urpos e 6/4/2021 Bac kup Material
B C C AP 6/4/2021 Bac kup Material
B C Audit R ep o rt 6/4/2021 Bac kup Material
CITY OF BROOKLYN CENTER
AUDIT REPORT
YEAR ENDED DECEMBER 31, 2020
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
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
Financial Report
Unmodified or Clean Opinion
Internal Controls Over Financial Reporting
No Findings
Legal Compliance Audit Findings
Withholding Affidavit
Single Audit of Federal Awards
No Findings
AUDIT OPINIONS AND FINDINGS
Audit Summary
Governmental Funds Overview
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
Tax Rates
2018 2019 2020
Average tax rate
City 67.1 70.4 65.2
County 42.8 41.9 41.1
School 46.3 50.2 47.4
Special taxing 10.4 10.0 9.6
Total 166.6 172.5 163.3
City of Brooklyn Center
MANAGEMENT REPORT (CONT.)
Year 2018 2019 2020
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,299 32,722 32,722
Property taxes 514$ 489$ 512$ 547$ 581$ 614$
Tax increments 30 28 44 158 165 195
Franchise fees and other taxes 45 50 50 58 55 40
Special assessments 54 38 53 55 63 54
Licenses and permits 40 35 51 37 36 30
Intergovernmental revenues 342 297 201 197 374 239
Charges for services 135 108 115 33 38 25
Other 89 78 79 42 64 37
Total revenue 1,249$ 1,123$ 1,105$ 1,127$ 1,376$ 1,234$
December 31, 2019
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide City of Brooklyn Center
MANAGEMENT REPORT (CONT.)
Year 2018 2019 2020
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,299 32,722 32,722
Current
General government 152$ 128$ 107$ 114$ 114$ 128$
Public safety 300 282 306 353 367 379
Street maintenance 146 149 119 73 76 65
Parks and recreation 103 124 106 87 97 82
All other 74 75 97 84 81 113
775$ 758$ 735$ 711$ 735$ 767$
Capital outlay
and construction 438$ 376$ 355$ 304$ 408$ 290$
Debt service
Principal 168$ 182$ 88$ 101$ 112$ 125$
Interest and fiscal 43 41 28 23 24 25
211$ 223$ 116$ 124$ 136$ 150$
Total expenditures 1,424$ 1,357$ 1,206$ 1,139$ 1,279$ 1,207$
State-Wide
December 31, 2019
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Brooklyn Center
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
MANAGEMENT REPORT (CONT.)
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
One Finding Reported
Improving General Fund and Overall
Financial Position of the City
Continued Ongoing Assessment of
Financial Projections and Results Including
General, Other Operational and Enterprise
Fund Activities
SUMMARY
2020 Annual
Comprehensive Financial
Report
October 8, 2018
Review
City Council/Financial Commission Joint Work Session ‐ June 7, 2021
Mark Ebensteiner, Finance Director
General Fund
•October 8, 2018
•Positive operating budget results of $1,681,351
•Net increase in fund balance of $1,681,351 ($1,769,004 assigned fund
balance in general fund for capital transfer)
•General Fund unassigned fund balance represents 52% of next year’s
budgeted expenditures
•Fund Balance >52% for capital projects transfer based on policy
2
General Fund Revenues•October 8, 2018
•Revenues over budget by $304,632
3
2020 Significant Budget Variances Amount
Investment Earnings (net of market value) $141,188
Building permits ($143,433)
Intergovernmental Revenue $1,557,339
Lodging tax ($618,398)
Property tax revenue ($122,339)
Community Center Fees ($497,909)
General Fund Expenditures•October 8, 2018
•Expenses under budget by $1,524,220
4
2020 Significant Budget Variances Amount
Recreation Programs $434,659
Community Center $276,563
Park Maintenance $166,098
Police Protection $345,900
Street Department $260,444
Nondepartmental expenditures ($148,672)
Enterprise Funds
•Municipal Liquor
•Operating loss of $89,083, compared to operating income of $199,838 in 2019.
•Both stores were closed or had limited hours from March 18th through July 4th due to
COVID19
•EBHC
•Operating loss of $1,721,203 compared to a operating loss of $150,534 in 2019.
•$300,000 DEED grant to support operations
•Closed and/or minimal activity due to COVID19 restrictions
5
Enterprise Fund Change in Cash
Municipal Liquor ($1,326,489)
EBHC ($995,785)
Utility Funds
•Water received $1.8 million in bond proceeds to pay its’ portion of neighborhood
improvement project costs
•Sanitary Sewer received $1.1 million in bond proceeds as a result of planned project costs
6
Utility Fund Change in Cash
Water ($708,703)
Sanitary Sewer ($1,691,030)
Storm Drainage ($1,768,029)
Street Light $235,041
Recycling $5,511
Other
•Interstate Area Improvements‐ $6.5 million
•Continued work on Brooklyn Blvd. Improvements ‐ $2
million
•Grandview North Area Improvements ‐ $5.3 million
•Mill and overlay projects ‐ $2.1 million
•Water Tower #1 Rehab – total cost $780,000
•Liquor store #1 completion ‐ $2.9 million
7
Significant capital investments made during the year ($18 million)
•Central Garage ‐ Added/Replaced 18 pieces of equipment totaling $923,898, primarily public
works and police vehicles.
•Debt – Retired $6,500,000 of principal on previously issued bonds and issued $4,800,000 in new
debt for infrastructure projects.
Other Continued…
•October 8, 2018
•Net Investment gain of $1,452,728, compared to an investment gain
of $1,927,956 in 2019
•Net investment gain includes:
•Investment income of $933,773 (2019 was $1,266,690)
•Unrealized gain on investments of $518,955 (2019 was $661,266)
•Unrealized (paper gain) due to lowering interest rates
•Investments anticipated to be held to maturity
•City/EDA owned $18.3 million in assets held for resale at year‐end
8
Questions?
9
Management Report
for
City of Brooklyn Center, Minnesota
December 31, 2020
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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, 2020. 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 24, 2021
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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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 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, 2020. 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 and in our audit
engagement letter. 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, 2020:
• 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 one finding based on our testing of the City’s compliance with Minnesota laws and
regulations. This finding, as further detailed in the City’s Special Purpose Audit Reports, includes
the following:
1. For one of two contracts selected for testing that were completed during the 2020 fiscal
year, the statutory requirement to obtain a Form IC134 or Contractor’s Withholding
Affidavit prior to making the final payment to a contractor, was not met.
-2-
OTHER OBSERVATIONS AND RECOMMENDATIONS
Electronic Funds Transfers Fraud
As the use of electronic funds transfers and payment methods has become more prevalent, we have seen
increases in both the incidences of fraud related to these transactions and the dollar amounts involved.
Operational changes related to the COVID-19 pandemic, including greater reliance on technology and
more employees working remotely, have tended to increase risk in this area. We urge cities to carefully
review controls over these transactions, and consider best practices to address these risks, such as:
• Ensuring segregation of duties over these transactions by involving more than one employee in
the process.
• Requiring multi-factor authentication of requests for electronic payments from new vendors or for
changes in wiring instructions for existing vendors. It is recommended that changes for existing
vendors be verified through trusted contact information used previously for that vendor, not as
provided in the change request, to verify the accuracy of the change.
• Educate employees on the controls in place to protect the organization’s financial assets and
ensure management is supportive and accepting of the processes in place. Attempted fraudulent
transactions are often initiated using the profile of a supervisor. Employees must be comfortable
questioning unusual transactions or requests, and instructed not to circumvent internal control
procedures regardless of whom they believe initiated the transaction.
• Recommended cyber security measures, such as limiting network access and requiring robust
passwords that are changed regularly, should be implemented and followed by all city employees,
not just those directly involved with financial transactions.
• Review insurance policies to understand the coverage provided for financial losses due to
cybersecurity risks and evaluate whether they provide adequate coverage based on management’s
assessment of these risks.
Uniform Guidance Written Controls and Micro-Purchase Threshold
Federal Uniform Guidance requires that nonfederal entities must have and use documented procurement
procedures consistent with 2CFR § 200.317-320 for the acquisition of property or services required under
a federal award or subaward. Effective August 31, 2020, the federal micro-purchase threshold, which is
the threshold that allows for procurements without soliciting competitive price or rate quotations given
certain conditions, was increased from $3,500 to $10,000 in the Federal Acquisition Regulations (FAR).
Effective November 12, 2020, the Uniform Guidance was also revised to allow nonfederal entities to
establish a micro-purchase threshold higher than the $10,000 threshold established in the FAR under
certain circumstances. The nonfederal entity may self-certify a micro-purchase threshold up to $50,000 if
the requirements in 2CFR § 200.320(a)(1)(iv) are followed. Requirements include an annual
self-certification and clear documentation of the justification to support the increase in the threshold.
Acceptable reasons for justification must meet one of the following criteria:
• A qualification as a low-risk auditee, in accordance with the criteria in § 200.520 for the most
recent audit,
• An annual internal institutional risk assessment to identify, mitigate, and manage financial risks,
or,
• A higher threshold consistent with state law.
This flexibility would allow Minnesota local governments to increase and align their federal procurement
procedures, specifically the micro-purchase threshold, with state law, which allows for procurements
below $25,000 to be made without competitive price or rate quotations.
-3-
We recommend that the City review its current federal procurement policy. If the micro-purchase
threshold in your currently adopted policy is below the allowable FAR limit of $10,000, you would need
to make a one-time amendment to the policy to adopt the $10,000 FAR limit before using it. If you prefer
to increase your federal micro-purchase threshold to $25,000 to align it with state law, in addition to
amending your federal procurement policy, you would need to annually certify the higher threshold and
the justification for using the higher threshold.
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 2CFR § 200.331-333 for disbursements of
federal funds determined to be a federal subaward. A subaward is an a greement 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 2CFR § 200.501.
We recommend that the City review its current federal grant proc edures to ensure they include and are
consistent with the Uniform Guidance requirements.
-4-
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, 2020.
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.
-5-
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements 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 24, 2021.
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.
-6-
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 met hod 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 2019 fiscal year, local ad valorem property tax levies provided 40.8 percent of the total
governmental fund revenues for cities over 2,500 in population, and 37.6 percent for cities under 2,500 in
population. Total property taxes levied by all Minnesota cities for taxes payable in 2020 increased
6.1 percent from the prior year.
The total tax capacity value of property in Minnesota cities increased about 6.5 percent for the 2020 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 2020 were based on assessed market
values as of January 1, 2019), 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 10.1 percent for taxes payable in 2019 and increased
10.7 percent for taxes payable in 2020. 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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Taxable Market Value
-8-
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 5.6 percent for taxes payable in 2019 and increased
10.2 percent for taxes payable in 2020.
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
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tax Capacity
The following table presents the average tax rates applied to city residents for each of the last three levy
years:
2018 2019 2020
Average tax rate
City 67.1 70.4 65.2
County 42.8 41.9 41.1
School 46.3 50.2 47.4
Special taxing 10.4 10.0 9.6
Total 166.6 172.5 163.3
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.
-9-
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 on 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 2018 2019 2020
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,299 32,722 32,722
Property taxes 514$ 489$ 512$ 547$ 581$ 614$
Tax increments 30 28 44 158 165 195
Franchise fees and other taxes 45 50 50 58 55 40
Special assessments 54 38 53 55 63 54
Licenses and permits 40 35 51 37 36 30
Intergovernmental revenues 342 297 201 197 374 239
Charges for services 135 108 115 33 38 25
Other 89 78 79 42 64 37
Total revenue 1,249$ 1,123$ 1,105$ 1,127$ 1,376$ 1,234$
December 31, 2019
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 2020 was $1,234, a decrease of about 10.3 percent
from the prior year. The majority of this decrease was in intergovernmental revenues, which decreased
$135 per capita, due to the federal grant and county funds received for the Brooklyn Boulevard
improvement project in the prior year.
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The expenditures of governmental funds will also vary from state -wide averages and from year-to-year,
based on the City’s circumstances. Expenditures are classified into three types as follows:
• Current – These are typically the general operating type expenditures occurring on an annual
basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues.
• Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluctuating significantly from year-to-year. Many of these expenditures are
project-oriented, and are often funded by specific sources that have benefited from the
expenditure, such as special assessment improvement projects.
• Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor . Some debt may be repaid
through specific sources, such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The City’s expenditures per capita of its governmental funds for the past three years, together with
state-wide averages, are presented in the following table:
Year 2018 2019 2020
Population 2,500–10,000 10,000–20,000 20,000–100,000 32,299 32,722 32,722
Current
General government 152$ 128$ 107$ 114$ 114$ 128$
Public safety 300 282 306 353 367 379
Street maintenance 146 149 119 73 76 65
Parks and recreation 103 124 106 87 97 82
All other 74 75 97 84 81 113
775$ 758$ 735$ 711$ 735$ 767$
Capital outlay
and construction 438$ 376$ 355$ 304$ 408$ 290$
Debt service
Principal 168$ 182$ 88$ 101$ 112$ 125$
Interest and fiscal 43 41 28 23 24 25
211$ 223$ 116$ 124$ 136$ 150$
Total expenditures 1,424$ 1,357$ 1,206$ 1,139$ 1,279$ 1,207$
State-Wide
December 31, 2019
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 $32 per capita in 2020,
mainly due to the $32 increase in all other as a result of a loss on a transfer of an asset held for resale and
the write-off of an advance. Capital outlay costs per capita decreased $118 in the current year, due to the
Brooklyn Boulevard improvement project.
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GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2020, presented both by fund balance classification and by fund:
2020 2019 Change
Fund balances of governmental funds
Total by classification
Nonspendable 85,703$ 88,109$ (2,406)$
Restricted 34,032,886 32,219,640 1,813,246
Committed 7,631,587 9,570,360 (1,938,773)
Assigned 3,249,137 1,192,667 2,056,470
Unassigned 12,136,345 11,241,736 894,609
Total governmental funds 57,135,658$ 54,312,512$ 2,823,146$
Total by fund
General 14,205,568$ 12,524,217$ 1,681,351$
Tax Increment District No. 3 23,057,146 21,614,535 1,442,611
Debt Service 4,398,682 3,991,322 407,360
Capital Improvements 773,207 1,613,299 (840,092)
Municipal State Aid for Construction 2,672,384 1,294,135 1,378,249
Special Assessment Construction 1,480,133 2,742,063 (1,261,930)
Street Reconstruction 5,129,774 6,442,489 (1,312,715)
Nonmajor funds 5,418,764 4,090,452 1,328,312
Total governmental funds 57,135,658$ 54,312,512$ 2,823,146$
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 $2,823,146 during the year
ended December 31, 2020. The majority of the increase was in restricted and assigned fund balances
offset by the decrease in committed fund balance. Restricted fund balances increased $1,813,246, mainly
in funds restricted for tax increment financing and state-aid street systems. Assigned fund balances
increased $2,056,470, mainly in funds assigned for capital improvements in the General Fund that will be
transferred in 2021 in accordance with the City’s fund balance policy. These increases were offset by the
$1,938,773 decrease in funds committed for capital and street improvements.
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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.
2016 2017 2018 2019 2020
Fund Balance $11,440,897 $11,355,203 $11,563,825 $12,524,217 $14,205,568
Cash (Net)$12,326,654 $12,057,840 $12,199,624 $13,671,153 $14,812,008
Expenditures $18,849,079 $19,873,539 $21,181,481 $21,958,748 $22,006,896
$–
$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
General Fund Financial Position
Year Ended December 31,
The City’s General Fund cash and investments balance (net of interfund borrowing) at December 31,
2020 was $14,812,008, which increased $1,140,855 from 2019. Total fund balance at December 31, 2020
was $14,205,568, an increase of $1,681,351 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, 2020, the City’s General Fund had an unassigned
fund balance of 52 percent of the subsequent year’s budgeted expenditures.
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The following graph reflects the City’s General Fund revenue sources for 2020 compared to budget:
Other
Charges for Services
Intergovernmental
Licenses and Permits
Taxes
General Fund Revenue
Budget Actual
Total General Fund revenues for 2020 were $24,098,621, which was $304,632 (1.3 percent) over the final
budget. Intergovernmental revenues were $1,557,339 over budget, due to the recognition of the City’s
portion of coronavirus relief funds (CRF). This variance was offset by taxes and charges for services
under budget by $747,344 and $496,652, respectively. Taxes were under budget, mainly in lodging taxes,
due to the COVID-19 pandemic. Charges for services were under budget, mainly in community center
and recreation fees, due to closures during 2020, due to the COVID-19 pandemic.
The following graph presents the City’s General Fund revenues by source for the last five years:
Taxes Intergovernmental Other
2016 $16,128,373 $1,466,341 $2,397,091
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
$–
$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 increased $1,119,481 (4.9 percent) from the previous year, mainly in
intergovernmental revenue. Intergovernmental revenue increased $1,678,695, due to receipt of the CRF as
previously mentioned.
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The following graph illustrates the components of General Fund spending for 2020 compared to budget:
Other
Parks and Recreation
Public Works
Public Safety
General Government
General Fund Expenditures
Budget Actual
Total General Fund expenditures for 2020 were $22,006,896, which was $1,577,093 (6.7 percent) less
than budget. The largest variances occurred in the parks and recreation, public works, and public safety
functions. Parks and recreation expenditures were $861,600 under budget, due to the closure of the
community center at times during 2020, due to the COVID-19 pandemic. Public works expenditures were
$306,133 under budget, mainly in the street department. Expenditures in the public safety function were
$281,286 under budget, mainly in the building and community standards department.
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
2016 $3,019,888 $10,067,963 $1,918,330 $2,627,958 $1,214,940
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
$–
$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 $48,148, or 0.2 percent, from the prior year. General government
and public safety expenditures increased, while public works, parks and recreation, and other
expenditures decreased. General government expenditures increased $426,580 in the elections and
government buildings functions. Public safety expenditures increased $406,233 in the police and fire
protection departments. Expenditures in the public works function decreased $254,228, mainly in the
street department. Parks and recreation expenditures decreased $457,963 in the community center and
recreation programs departments.
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ENTERPRISE FUNDS OVERVIEW
The City maintains several enterprise funds to account for services the City provides that are financed
primarily through fees charged to those utilizing the service. This section of the report provides you with
an overview of the financial trends and activities of the City’s enterprise funds, which include the
Municipal Liquor, Earle Brown Heritage Center, Water Utility, Sanitary Sewer Utility, Storm Drainage
Utility, Street Light Utility, and Recycling Utility Funds.
The utility funds comprise a considerable portion of the City’s activities. These funds significantly help to
defray overhead and administrative costs and provide additional support to general government operations
by way of annual transfers. We understand that the City is proactive in reviewing these activities on an
ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over
the years, we have emphasized to our city clients the importance of these utility operations being
self-sustaining, preventing additional burdens on general government funds. This would include the
accumulation of net position for future capital improvements and to provide a cushion in the event of a
negative trend in operations.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2020, presented both by classification and by fund:
2020 2019 Change
Net position of enterprise funds
Total by classification
Net investment in capital assets 43,786,262$ 43,450,307$ 335,955$
Unrestricted 17,132,524 18,604,787 (1,472,263)
Total enterprise funds 60,918,786$ 62,055,094$ (1,136,308)$
Total by fund
Municipal Liquor 2,611,035$ 2,718,036$ (107,001)$
Earle Brown Heritage Center 4,539,013 5,877,018 (1,338,005)
Water Utility 13,225,747 13,223,758 1,989
Sanitary Sewer Utility 15,923,860 15,639,348 284,512
Storm Drainage Utility 21,635,354 21,811,793 (176,439)
Street Light Utility 2,697,489 2,501,755 195,734
Recycling Utility 286,288 283,386 2,902
Total enterprise funds 60,918,786$ 62,055,094$ (1,136,308)$
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 $1,136,308 during the year ended
December 31, 2020, mainly in unrestricted net position in the Earle Brown Heritage Center Fund.
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Water Fund
The following graph presents five years of operating results for the Water Fund:
2016 2017 2018 2019 2020
Oper Rev $3,191,538 $3,543,323 $3,807,272 $3,760,995 $4,206,283
Oper Exp $2,681,066 $3,158,986 $3,270,522 $3,702,180 $3,924,010
Oper Inc (Loss)$510,472 $384,337 $536,750 $58,815 $282,273
Oper Inc Excl Dep $1,654,136 $2,019,592 $2,130,291 $1,723,736 $2,082,391
$–
$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
Water Fund
Year Ended December 31,
The Water Fund ended 2020 with a net position of $13,225,747, an increase of $1,989 from the prior
year. Of this, $10,219,490 represents the net investment in utility distribution system capital assets,
leaving $3,006,257 of unrestricted net position.
Water Fund operating revenue was $4,206,283 for 2020, an increase of $445,288 (11.8 percent) from the
prior year, due to an approved rate increase and increase in consumption in the current year. Operating
expenses of $3,924,010 were $221,830 (6.0 percent) more than last year, mainly due to an increase in
other services expense and depreciation expense in the current year.
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Sanitary Sewer Fund
The following graph presents five years of operating results for the Sanitary Sewer Fund:
2016 2017 2018 2019 2020
Oper Rev $4,204,962 $4,287,674 $4,406,741 $4,555,940 $4,662,342
Oper Exp $3,812,606 $3,969,011 $4,121,002 $4,353,701 $4,366,560
Oper Inc (Loss)$392,356 $318,663 $285,739 $202,239 $295,782
Oper Inc Excl Dep $1,209,977 $1,216,466 $1,188,019 $1,194,190 $1,273,643
$–
$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 2020 with a net position of $15,923,860, an increase of $284,512 from
the prior year. Of this, $10,680,918 represents the net investment in the sanitary sewer capital assets,
leaving $5,242,942 of unrestricted net position.
Sanitary Sewer Fund operating revenues for 2020 were $4,662,342, which was an increase of $106,402
(2.3 percent) from the prior year, due to an approved rate increase.
Operating expenses for 2020 were $4,366,560, which was an increase of $12,859 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 2020 increased by $46,531 from the prior year.
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Storm Drainage Fund
The following graph presents five years of operating results for the Storm Drainage Fund:
2016 2017 2018 2019 2020
Oper Rev $1,620,302 $1,598,374 $1,681,234 $1,680,204 $1,691,946
Oper Exp $1,700,595 $1,815,673 $1,881,402 $2,351,376 $2,304,316
Oper Inc (Loss)$(80,293)$(217,299)$(200,168)$(671,172)$(612,370)
Oper Inc Excl Dep $1,065,816 $1,060,584 $1,109,286 $765,936 $819,380
$(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 2020 with a net position of $21,635,354, a decrease of $176,439 from
the prior year. Of this, $17,199,885 represents the net investment in capital assets, leaving $4,435,469 of
unrestricted net position.
Storm Drainage Fund operating revenues for 2020 were $1,691,946, which was a slight increase of
$11,742 from the prior year.
Operating expenses for 2020 were $2,304,316, which was $47,060 lower than the prior year, mainly in
other services expense.
The Storm Drainage Fund received capital contributions of $391,952 from governmental activities in the
current year.
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OTHER ENTERPRISE FUNDS
Liquor Fund
The following graph presents five years of operating results for the Liquor Fund:
2016 2017 2018 2019 2020
Sales $6,197,094 $6,495,300 $6,743,790 $6,855,696 $5,490,543
Cost of Sales $4,611,919 $4,769,844 $4,865,400 $5,008,694 $3,989,186
Oper Exp $1,465,790 $1,434,340 $1,613,573 $1,647,164 $1,590,440
Oper Inc (Loss)$119,385 $291,116 $264,817 $199,838 $(89,083)
Oper Inc Excl Dep $140,379 $312,919 $286,620 $218,292 $18,349
$(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 2020 with a net position of $2,611,035, a decrease of $107,001 from the prior
year. Of the net position balance, $736,550 represents the net investment in liquor capital assets, leaving
$1,874,485 of unrestricted net position.
Liquor sales for 2020 were $5,490,543, which is $1,365,153 (19.9 percent) lower than the prior year, due
primarily to the impact of COVID-19 restrictions. Operating expenses of $1,590,440 represented a
decrease of $56,724, mainly due to a decrease in rent expense offset by an increase in depreciation
expense as the City completed construction and opened a new liquor store in the current year.
The Liquor Fund had an operating loss of $89,083 in 2020, compared to operating income of $199,838 in
2019.
The Liquor Fund’s gross profit margin was 27.34 in fiscal 2020, which is higher than the average gross
profit margin of 26.75 seen over the previous five years.
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Earle Brown Heritage Center Fund
The following graph presents five years of operating results for the Earle Brown Heritage Center Fund:
2016 2017 2018 2019 2020
Sales and User Fees $4,700,175 $4,891,574 $4,844,775 $5,066,519 $1,304,966
Cost of Sales $2,066,065 $2,257,315 $2,208,993 $2,385,593 $826,353
Oper Exp $2,388,597 $2,519,580 $2,660,841 $2,831,460 $2,199,816
Oper Inc (Loss)$245,513 $114,679 $(25,059)$(150,534)$(1,721,203)
Oper Inc Excl Dep $427,518 $293,066 $174,805 $75,349 $(1,462,494)
$(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 2020 with a net position of $4,539,013, a decrease of
$1,338,005 from the prior year. Of the net position balance, $3,476,551 represents investments in Earle
Brown Heritage Center capital assets, leaving $1,062,462 of unrestricted net position.
Earle Brown Heritage Center Fund sales and user fees for 2020 were $1,304,966, which is $3,761,553
(74.2 percent) lower than last year, due to the impact of COVID-19 restrictions. Operating expenses for
2020 were $2,199,816, a decrease of $631,644 from the prior year, mainly in personal services and other
services expense, due to closures during 2020, due to the COVID-19 pandemic.
During fiscal 2020, this fund experienced depreciation expense totaling $258,709.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government-wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what the City owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, the Statement
of Net Position divides the net position into three components:
• Net Investment in Capital Assets – The portion of net position reflecting equity in capital assets
(i.e., capital assets minus related debt).
• Restricted Net Position – The portion of net position equal to resources whose use is legally
restricted minus any noncapital-related liabilities payable from those same resources.
• Unrestricted Net Position – The residual balance of net position after the elimination of net
investment in capital assets and restricted net position.
The following table presents the components of the City’s net position as of December 31, 2020 and 2019
for governmental activities and business-type activities:
2020 2019 Change
Net position
Governmental activities
Net investment in capital assets 54,471,240$ 52,560,591$ 1,910,649$
Restricted 38,473,882 35,743,847 2,730,035
Unrestricted 9,335,442 5,152,891 4,182,551
Total governmental activities 102,280,564 93,457,329 8,823,235
Business-type activities
Net investment in capital assets 43,786,262 43,450,307 335,955
Unrestricted 14,484,003 16,005,070 (1,521,067)
Total business-type activities 58,270,265 59,455,377 (1,185,112)
Total net position 160,550,829$ 152,912,706$ 7,638,123$
As of December 31,
The City’s total net position at December 31, 2020 was $7,638,123 higher than the previous year-end. Of
the increase, $8,823,235 came from governmental activities and an offset of $1,185,112 came from
business-type activities. The increase in the governmental activities was due to increases in restricted
balances for tax increment and municipal state-aid for construction. The increase in unrestricted is due to
the positive operating results of the City as a whole.
The business-type activities net position decreased in the current year as previously discussed.
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STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other
transactions that increase or reduce total net position. These amounts represent the full cost of providing
services. The Statement of Activities provides a more comprehensive measure than just the amount of
cash that changed hands, as reflected in the fund-based financial statements. This statement includes the
cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in the net position of the City for the years ended December 31,
2020 and 2019:
2019
Program
Expenses Revenues Net Change Net Change
Governmental activities
General government 4,834,450$ 412,993$ (4,421,457)$ (3,947,048)$
Public safety 13,057,043 1,814,834 (11,242,209) (10,425,374)
Public works 6,450,769 4,679,687 (1,771,082) (1,448,893)
Community service 171,344 – (171,344) (181,159)
Parks and recreation 3,218,266 455,270 (2,762,996) (2,855,965)
Economic development 2,872,886 340,195 (2,532,691) (1,721,460)
Interest on long-term debt 634,139 – (634,139) (666,343)
Business-type activities
Municipal liquor 5,699,529 5,503,163 (196,366) 85,052
Earle Brown Heritage Center 3,034,695 1,309,634 (1,725,061) (173,516)
Water utility 4,377,809 4,261,455 (116,354) (328,862)
Sanitary sewer utility 4,551,331 4,662,764 111,433 464,953
Storm drainage utility 2,441,109 1,691,946 (749,163) (726,592)
Street light utility 306,619 476,766 170,147 133,113
Recycling utility 396,402 394,495 (1,907) (5,629)
Total net (expense) revenue 52,046,391$ 26,003,202$ (26,043,189) (21,797,723)
General revenues
Property taxes 20,136,395 19,073,449
Tax increments 6,566,099 5,354,749
Lodging taxes 561,602 1,091,105
Grants and contributions not
restricted to specific programs 4,881,613 2,234,683
Unrestricted investment earnings 1,452,728 1,927,956
Gain on disposal of capital assets 82,875 63,366
Total general revenues 33,681,312 29,745,308
Change in net position 7,638,123$ 7,947,585$
Net (expense) revenue
2020
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.
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LEGISLATIVE UPDATES
The 2020 legislative session, coming in the second half of the state’s fiscal biennium, was expected to be
a typical short session focused primarily on making relatively minor modifications to the biennial budget.
Given a projected budget surplus of $1.5 billion going into the session, consideration of a substantial
capital investment and bonding bill was also a potential focus.
The start of the legislative session in February was followed by a series of significant events that changed
the course of the session, including a world-wide health pandemic, the death of George Floyd while in
police custody and the ensuing protests and unrest, and a hotly contested national election. On March 13,
2020, the Governor issued an executive order declaring a peacetime emergency, giving his administration
the ability to quickly impose restrictions and measures aimed at mitigating the COVID-19 outbreak. By
early May, the state’s budget outlook had changed from a robust surplus to a projected deficit of
$2.4 billion. The legislative session ultimately encompassed an unprecedented seven special sessions,
more than double the previous state record of three, with the final special session in mid-December.
In the end, a $1.87 billion omnibus bonding bill was passed that included $1.36 billion in general
obligation state bonding for capital improvements, $31.0 million in supplemental General Fund budget
spending, and provisions for tax relief and economic assistance. The session also yielded a new Police
Accountability Act, and a $217.0 million economic relief package to help businesses negatively impacted
by the pandemic. The following is a brief summary of legislative changes from the 2020 session or
previous legislative sessions potentially impacting Minnesota cities.
Coronavirus Aid, Relief, and Economic Security (CARES) Act – The CARES Act provided federal
economic relief to protect the American people from the public health and economic impacts of
COVID-19. Minnesota received approximately $2.2 billion in funding under the CARES Act.
When the first legislative special session ended without an agreement on the distribution of approximately
$841.5 million of federal Coronavirus Relief Fund (CRF) funding earmarked for Minnesota local
governments, the Governor distributed the funds by executive order based on the framework of the
legislative agreement debated during the first special session. This resulted in $350.4 million being
distributed directly to Minnesota cities with populations equal to or greater than 200. The funds were
authorized for use for unbudgeted costs related to the COVID-19 pandemic, but not to replace lost
revenues. In accordance with CARES Act provisions, the CRF funding was available to cover costs that;
1) were necessary expenditures incurred due to the public health emergency related to COVID-19;
2) were not accounted for in the entity’s budget most recently approved as of March 27, 2020; and
3) were incurred during the period from March 1, 2020 through December 31, 2020 (the availability
period end date was revised by the state to November 15, 2020 for Minnesota cities).
Emergency Small Business Assistance Program – The Legislature created a program to appropriate
$60.0 million of federal CRF funding to make grants available through the Minnesota Department of
Employment and Economic Development for eligible small businesses impacted by COVID-19. Small
businesses employing up to 50 full-time employees are eligible to receive grants of up to $10,000. The
allocation is split between the metro area and greater Minnesota, with specific allocations for busines ses
owned by minorities, veterans, and women. $18.0 million of the allocation is earmarked for businesses
with 6 or less employees.
Workers’ Compensation Claims – COVID-19 Presumption – The Legislature adopted several new
provisions to state unemployment statutes related to COVID-19, including a presumption that an
employee who contracts COVID-19 has an “occupational disease” arising out of, and in the course of,
employment if the employee works in one of the specified occupations and has a confirmed case of
COVID-19. Covered occupations include nurses, healthcare workers, and workers required to provide
childcare for first responders and healthcare workers under Executive Orders 20 -02 and 20-19. The
COVID-19 presumption provision sunsets on May 1, 2021.
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Bonding Bill – The 2020 bonding bill provided financing for approximately $1.36 billion of projects.
Some of the more significant appropriations for local infrastructure included: $105 million in
undesignated grants for local road improvement and bridge replacement; $100 million for water
infrastructure and point source implementation grants; $25 million for state match of federal grants for
public facilities improvements, $20 million for natural resource asset preservation, $17 million for flood
control mitigation, $15 million for the Local Government Roads Wetlands Replacement Program;
$5 million for Metropolitan Council inflow and infiltration grants; and $5 million for metropolitan
regional parks and trails. The bill also included funding for a number of state initiatives, including:
$300 million in trunk highway bonds for the improvement of the state trunk highway system;
$145 million in appropriation bonds to fund the infrastructure and capital needs of the Minnesota Housing
Finance Agency, Minnesota Pollution Control Agency, and Minnesota Public Television; $30 million for
state agency projects aimed at promoting racial equity, $29.5 million for the state Emergency Operations
Center; and $16 million for the Minnesota Housing Finance Agency.
The bill provides authority for eligible local governments to own and operate childcare facilities, and
permits local governments to enter into management agreements with licensed childcare providers to
operate in publicly-owned facilities. It also makes cities, counties, school districts, and joint powers
boards located outside of the seven-county metro area eligible to apply for grants through the Greater
Minnesota Childcare Facility Capital Grant Program.
The bill also included a provision extending the equal pay certificate of compliance requirement to
contracts by any public entity, including political subdivisions, using state general obligation bond
proceeds for all or part of a capital project. Local governments will be responsible for requiring tha t bids
include proper certification on applicable projects, which applies to projects for goods or services valued
at more than $1 million utilizing appropriated bond proceeds on or after January 1, 2022.
Elections – A number of measures were passed to help ensure the safe and secure conduct of the 2020
state primary and general elections, including; allowing for the processing of absentee ballots to begin
14 days prior to the date of the election, extending the period during which absentee ballots could be
processed for 2 days following the election, accepting electronic filings for affidavits of candidacy or
nominating petitions, and specifying that municipalities were to use schools as polling places only when
no other public or private location was reasonably available. Funds from the federal Help America Vote
Act were made available for modernizing, securing, and improving election facilities, a portion of which
was made available for grants to local governments to fund activities prescribed by this program.
Minors Operating Lawn Care Equipment – Effective May 28, 2020, Minnesota Statutes lowered the
employment age for operating lawn care equipment to age 16. Minors aged 16 and 17 must be trained in
the safe operation of the equipment and wear appropriate personal protective equipment when operating
the lawn care equipment. The exception under this statute applies only to minors directly employed by
golf courses, resorts, rental property owners, or municipalities to perform lawn care on golf courses,
resort grounds, rental property, or municipal grounds.
Open Meeting Law Exception – The interactive television provision of the Minnesota Open Meeting
Law was amended to allow for participation in meetings by interactive electronic means, such as Skype or
Zoom, without requiring that an elected official be advised to do so by a healthcare professional for
personal or family medical reasons. This allowance is available only when a national security or
peacetime emergency has been declared and may be used up to 60 days after the emergency declaration
has been lifted. Whenever public meetings are held via interactive electronic means of this type, votes
must be conducted by roll call and be recorded in the minutes.
Expanded Authority for Electronic Signatures During COVID-19 – Effective May 17, 2020, cities
are allowed to accept certain documents, signatures, or filings electronically, by mail, or facsimile during
the COVID-19 pandemic, including; planning and zoning applications and permits; land use documents;
documents requiring the signature of licensed architects, engineers, land surveyors, geoscientists, or
interior designers; applications for birth or death certificates; or recording notary commissions. This
accommodation expires January 16, 2021, or 60 days following the termination of the peacetime public
health emergency.
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Solid Waste Recycling Exemption – The requirement that not more than 15 percent of mixed municipal
solid waste received by recycling or composting facilities be disposed of, rather than recycled or
composted, is suspended as long as the need for the exception is triggered by operational changes
implemented to address the COVID-19 pandemic.
Pension Changes – Effective January 1, 2021, the maximum lump-sum pension amount for volunteer
firefighters is increased from $10,000 to $15,000 per year of service. Municipalities are permitted to sp lit
state fire aid received between its career firefighters and its affiliated volunteer firefighters, but only if the
amount allocated to the career firefighters is approved by the membership of the volunteer firefighter
relief association. Any aid allocated to career firefighters must be used to pay the Public Employees
Retirement Association (PERA) employer contributions on their behalf within 18 months of the transfer
or be returned to the relief association.
Police Accountability Act – The Legislature passed the Police Accountability Act, which enacted a
number of changes to laws governing police conduct, training, and oversight. Among the more significant
changes adopted were:
• Defined and authorized “public safety peer counseling” and “critical incident stress
management,” and classifies information shared in these settings as private data.
• Established an Independent Use of Force Investigations Unit within the Bureau of Criminal
Apprehension to investigate all officer-involved deaths in the state, as well as criminal sexual
assault allegations against peace officers, effective August 1, 2020.
• Authorized statutory or home rule charter cities to offer incentives to encourage a person hired as
a peace officer to be a resident of the city.
• Limited the use of certain restraint methods by peace officer unless the use of deadly force is
authorized in a given situation.
• Established and modified provisions related to law enforcement use of deadly force.
• Defined and prohibited “warrior-style” training for peace officers.
• Established a 15-member “Ensuring Police Excellence and Improving Community Relations
Advisory Council” under the Police Officer Standards and Training (POST) Board, to assist the
POST Board in maintaining policies and regulating peace officers in a manner that ensures the
protection of civil and human rights.
• Established a duty for peace officers to intercede when another officer is using excessive force
and report incidents of excessive force to supervisors.
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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 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.
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.
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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 c onsistency 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 government
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.
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, 2020
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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
CFDA No.Number Expenditures
U.S. Department of Treasury
Passed through Hennepin County
COVID-19 – Coronavirus Relief Fund 21.019 19,827$
Passed through the Minnesota Department of Management and Budget
COVID-19 – Coronavirus Relief Fund 21.019 SLT0016 2,433,415
U.S. Department of Justice
Direct program
Bulletproof Vest Partnership Program 16.607 421
Passed through Hennepin County
Edward Byrne Memorial Justice Assistance Grant Program 16.738 3,253
U.S. Department of Transportation
Passed through the State of Minnesota
Highway Planning and Construction 20.205 35,207
Passed through the City of Brooklyn Park
National Priority Safety Programs 20.616 4,501
Passed through the City of Brooklyn Park
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 5,452
Total federal awards 2,502,076$
Note 1:
Note 2:
Note 3:
Note 4:Unaudited Disclosure – The City received donated personal protective equipment (PPE) with an estimated value of $8,500.
The City was unable to determine whether federal dollars were used to purchase the donated PPE.
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, 2020
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 CFDA numbers 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, 2020, 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 24, 2021.
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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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 24, 2021
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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
We have audited the City of Brooklyn Center, Minnesota’s (the City) compliance with the types of
compliance requirements described 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, 2020. The City’s major federal programs are identified in the Summary of
Audit Results section of the accompanying Schedule of Findings and Questioned Costs.
MANAGEMENT’S RESPONSIBILITY
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on compliance for each of the City ’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; 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). Those standards and the Uniform Guidance require that we plan
and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effec t on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City ’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City’s compliance.
(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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OPINION ON EACH MAJOR FEDERAL PROGRAM
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to on the previous page that could have a direct and material effect on each of its major federal
programs for the year ended December 31, 2020.
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to on the previous page. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program, 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 internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City’s 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
first paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
PURPOSE OF THIS REPORT
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.
(continued)
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REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE 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, 2020, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements. We issued our report thereon dated May 24, 2021, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming
opinions on the financial statements that collectively comprise the basic financial statements. 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 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 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 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 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 24, 2021
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-7-
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, 2020, 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 24, 2021.
MINNESOTA LEGAL COMPLIANCE
In connection with our audit, we noted that the City failed to comply with provisions of the contracting
and bidding section of the Minnesota Legal Compliance Audit Guide for the Cities, promulgated by the
State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters as
described in the Schedule of Findings and Questioned Costs as finding 2020-001. Also, 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 deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, or tax increment financing sections of the Minnesota Legal
Compliance Audit Guide for Cities, 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.
CITY’S RESPONSE TO FINDING
The City’s response to the legal compliance finding identified in our audit has been included in the
Schedule of Findings and Questioned Costs. The City’s response was not subject to the auditing
procedures applied in our audit of the financial statements and, accordingly, we express no opinion on it.
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 24, 2021
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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CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs
Year Ended December 31, 2020
-8-
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:
Program or Cluster CFDA No.
U.S. Department of Treasury – COVID-19 – Coronavirus Relief Fund 21.019
Threshold for distinguishing between type A and B programs:750,000$
Does the auditee qualify as a low-risk auditee?X Yes No
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CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2020
-9-
B. FINANCIAL STATEMENT FINDINGS
None.
C. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
D. MINNESOTA LEGAL COMPLIANCE FINDINGS
2020-001 WITHHOLDING AFFIDAVIT
Criteria – Minnesota Statutes § 270C.66.
Condition – Before making final settlement with any contractor under a contract requiring
the employment of employees for wages by said contractor or subcontractors, the City of
Brooklyn Center, Minnesota (the City) must obtain a certificate by the Commissioner of
Revenue that the contractor or subcontractor has complied with the withholding requirements
of Minnesota Statutes § 290.92 (either by obtaining a Commissioner of Revenue Form IC134
or a Contractor’s Withholding Affidavit). The City did not obtain the required certificate for
one of two contracts selected for testing prior to making final settlement in 2020.
Questioned Costs – Not applicable.
Context – One of two contracts tested was not in compliance.
Cause – This was an oversight by city personnel.
Repeat Finding – This is a current year finding.
Effect – The City did not obtain the required documentation of either a Commissioner of
Revenue Form IC134 or a Contractor’s Withholding Affidavit as required by state statutes
prior to making final settlement.
Recommendation – We recommend that the City review its policies and procedures to
ensure future compliance with this statute.
View of Responsible Official and Planned Corrective Actions – The City is in agreement
with this finding, however does believe this was an isolated incident. Strong procedures are in
place, but staff working on this specific project were new to the process, and the vendor
the City worked with was new to the withholding reporting requirements of Minnesota
Statutes § 290.92. The City will review its procedures and update if necessary, to ensure
future compliance with Minnesota Statutes.
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Corrective Action Plans and
Summary Schedule of Prior Audit Findings
Year Ended December 31, 2020
A. FINANCIAL STATEMENT FINDINGS
None.
B. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
None.
C. MINNESOTA LEGAL COMPLIANCE FINDINGS
2020-001 WITHHOLDING AFFIDAVIT
Finding Summary
Minnesota Statutes require the filing of Form IC134 or a Contractor’s Withholding
Affidavit prior to making final settlement with any contractor under a contract requiring
the employment of employees for wages by said contractor and by subcontractors. For
one contract selected for testing, the City of Brooklyn Center, Minnesota (the City) did
not obtain a Form IC134 or a Contractor’s Withholding Affidavit before making final
payment to the contractor.
Corrective Action Plan
Actions Planned – The City will review policies and procedures to ensure compliance
with this statute in the future.
Official Responsible – Mark Ebensteiner, Finance Director.
Planned Completion Date – December 31, 2021.
Disagreement With or Explanation of Finding – The City is in agreement with this
finding, however does believe this was an isolated incident. Strong procedures are in
place, but staff working on this specific project were new to the process, and the vendor
the City worked with was new to the withholding reporting requirements of Minnesota
Statutes § 290.92.
Plan to Monitor – Mark Ebensteiner, Finance Director, will ensure policies and
procedures are reviewed and updated if necessary to ensure compliance with state statutes
in the future.
D. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
No audit findings were reported for the year ended December 31, 2019.
Annual Comprehensive Financial Report
For the year ended December 31, 2020
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
Acting City Manager
Prepared By:
FINANCE DIVISION
DEPARTMENT OF FISCAL & SUPPORT SERVICES
Mark Ebensteiner
Finance Director
Andrew Splinter
Assistant Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2020
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 91
Schedule of City Contributions - Public Employees General Employees
Retirement Fund 92
Schedule of City's and Non-Employer Proportionate Share of Net Pension
Liability - Public Employees General Employees Retirement Fund 94
Schedule of City Contributions - Public Employees Police and Fire Fund 96
Schedule of City's and Non-Employer Proportionate Share of Net Pension Liability - Public
Employees Police and Fire Fund 98
Schedule of Changes in Net Pension Asset and Related Ratio - Fire Relief Association 99
Schedule of City Contributions - Fire Relief Association 100
Schedule of City Contributions - International Union of Operating Engineers
Central Pension Fund 101
Combining and Individual Fund Statements and Schedules
Governmental Funds
Nonmajor Governmental Funds
Combining Balance Sheet 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 107
Nonmajor Special Revenue Funds
Combining Balance Sheet 108
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 110
CITY OF BROOKLYN CENTER, MINNESOTA
TABLE OF CONTENTS
Nonmajor Capital Projects Funds
Combining Balance Sheet 112
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 113
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual
General Fund 114
Special Revenue Funds
Housing and Redevelopment Authority 119
Economic Development Authority 120
Community Development Block Grant 121
Police Forfeitures 122
Revolving Loan Fund 123
Centerbrook Golf Course 124
Tax Increment District No. 2 125
Tax Increment District No. 3 126
Tax Increment District No. 4 127
Tax Increment District No. 5 128
Tax Increment District No. 6 129
Tax Increment District No. 7 130
Tax Increment District No. 8 131
City Initiatives Grant 132
Debt Service Fund 133
Capital Projects Funds
Capital Improvements 134
Municipal State-Aid for Construction 135
Special Assessment Construction 136
Street Reconstruction 137
Capital Reserve Emergency 138
Technology 139
Debt Service Fund by Account
Combining Balance Sheet 140
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 142
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual
G.O. Improvement Bonds, 2013B 144
G.O. Improvement Bonds, 2015A 145
G.O. Improvement Bonds, 2016A 146
G.O. Improvement Bonds, 2017A 147
G.O. Improvement Bonds, 2018A 148
G.O. Improvement Bonds, 2019A 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 24, 2021
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, 2020.
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
1
treatment, stormwater collection and treatment, and street lighting. Community and economic
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.
Enhanced Community Image
2
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 2019 population estimated from the Metropolitan Council
estimates the population for Brooklyn Center at 32,722. The number of housing units has
increased from 10,791 in 2011 to an estimated 11,318.
The City’s taxable market value is $2,280,312,601 for taxes payable 2021, which is an increase of
$220,238,243 or 10.69 percent from last year. The taxable market value increase is driven by large
increases in residential (6.2%), Industrial (11.4%), and apartment properties (9.7%). The net tax
capacity of the City is estimated at $29,240,979 compared to $26,538,221 for taxes payable 2020,
which is an increase of $2,702,758 (10.2%). Residential housing makes up 50.7% of the 2021 tax
capacity base. According to the Hennepin County Assessor’s Office, for the valuation used to
calculate the 2021 property tax payments, the median value home in Brooklyn Center is $207,000
compared to $198,000 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.
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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 2019 totaled $1,091,105, however due to the impact of COVID 19 on
the lodging industry that number dropped to $561,602 in 2020.
City issued building permits in 2020 had a total permit value of $56,445,490, 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.
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.
4
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 City engaged a consultant to update the 2006 Opportunity Site Master Plan. A draft of
the Master Plan has been completed and a traffic study and stormwater plan are underway.
The Master Plan is in final draft form and will be going to the City Council in the summer
of 2021 for final adoption. Zoning regulations are currently being drafted for the site.
Alatus is in predevelopment on Phase I of the development, which they intend to move
ahead with in 2021. Phase I would include 750 units of multi-family housing with a mix of
market-rate and affordable, and 36,000 square feet of additional commercial space,
including 20,000 square feet of community driven entrepreneurial market space. Alatus
has partnered with Project for Pride in Living on the project. They anticipate bringing the
project through entitlements in the fall of 2021. An Environmental Assessment Worksheet
is currently underway.
Additional development activities in 2020/2021 include:
On September 24, 2018 Earle Brown Elementary School (1500 59th Avenue North)
received approval to construct a new 1,200 square foot front entry, a 23,551-square foot
second story addition, and select site improvements. Construction began following end of
the school year in June 2019 and construction is still underway at this time.
The City approved plans to construct a new car wash facility within the Shingle Creek
Crossing shopping center. The project is currently under construction.
The City approved an application by C Alan Homes to construct 13 triplexes on EDA
owned lots along Brooklyn Boulevard. The project consists of a total of 39 three-bedroom
units in 13 structures. Construction is underway on the first two buildings, with the rest to
follow through the end of 2021.
Real Estate Equities completed 270 new units at 5801 Xerxes Avenue N. The project
includes a mix of 143 affordable independent senior units (Sonder Point) and 127
workforce units (Sonder House). Buildings were completed ahead of schedule. The first
building opened April 1 and was fully leased at opening. The second building will officially
open next month and is also fully leased.
Sears has entered into a purchase agreement with Scannell Properties for the 15-acre former
Sears site. They are currently conducting environmental assessment on the site and
conducting due diligence. They anticipate submitting a formal land use application in the
summer of 2021 for a commercial business center for the site.
5
Construction is wrapping up on the 30-lot Eastbrook Estates subdivision by Developer
Centra Homes on approximately 8 acres of land located west of 252 and south of 69th
Avenue North. All 30 lots have sold and all building permits have been issued. The City
recently submitted the final punch list to Centra Homes on the new streets.
The City has entered into a Preliminary Development Agreement with J O Companies for
a multi-family apartment on the EDA-owned properties at Brooklyn Boulevard and 61st
Avenue North. JO properties has continued their due diligence and is putting together an
application for 9% Low Income Housing Tax credits to be submitted to the Minnesota
Housing Finance Authority in June.
Other Activities in 2020/2021
Brooklyn Boulevard (49th Avenue to Bass Lake Road) was reconstructed and modernized
to improve roadway safety, enhance traffic operations, reduce access points and provide
improvement bicycle and pedestrian facilities. Federal funding through the Surface
Transportation Program has been awarded to the City and Hennepin County for this
project. Phase I of the project is complete. Phase II will focus on Brooklyn Boulevard
from Bass lake Road north to 69th Avenue. Design began in 2020 and construction is
scheduled to begin spring 2021 and be completed in 2022.
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.
6
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.
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,
2019. 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 2020 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, most especially Andrew Splinter, the Assistant Finance
Director. We would like to acknowledge all staff that contributed their efforts to the Finance
operations in 2020. 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 Mark A. Ebensteiner
Acting City Manager Finance Director
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8
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2020
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, 2020
Dan Ryan Council Member Four Years December 31, 2022
Marquita Butler Council Member Four Years December 31, 2020
APPOINTED OFFICIALS
Dr. Reginald Edwards Acting 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
Joel Iverson Acting Community Activities, Recreation and Services Director Appointed
Doran Cote Director of Public Works Appointed
Mark Ebensteiner 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 Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
11
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12
13
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Brooklyn Center, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
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, 2020, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
MANAGEMENT’S RESPONSIBILITY 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; this includes
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.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(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
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
OPINIONS
In our opinion, the financial statements referred to on the previous page 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, 2020, 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.
OTHER MATTERS
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, 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.
Other 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 introductory section, combining and individual fund
statements and schedules, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not required parts of the basic financial statements.
The combining and individual fund statements and schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such 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 combining and individual fund statements and schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have 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 them.
(continued)
14
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2021
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 integral 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 24, 2021
15
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16
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2020
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, 2020.
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 $160,550,829 (net position). Of this amount, $23,819,445 (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 $7,638,123 (5.0%) from the previous year, The increase can be primarily attributed
to a significant amount of tax increment revenues and utility revenues being used for debt service and capital outlay.
•As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$57,135,658, which is an increase of $2,823,146 (5.20%) from the previous year. Of the total fund balance, $12,136,345
(21.24%) is unassigned, which is free from any internal or external constraints of its use.
•The General fund has a fund balance of $14,205,568 at the close of the current fiscal year. During 2020, the fund balance
increased $1,681,351 (13.42%) from the previous year. The unassigned fund balance at year end is $12,352,562, which
represents 52.00% of the following year's budget. The remaining portion of the fund balance is nonspendable or assigned.
•The City’s total outstanding bonded debt decreased by $1,742,000 during the current fiscal year, from $63,113,445 to
$61,371,445. The City retired $6,527,000 in principal in 2020, and issued $4,785,000 in new debt for infrastructure projects
that included the Grandview North Area Infrastructure Improvement Project and rehabilitation of Water Tower #1.
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, 2020
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 22 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 15 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, 2020
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 90 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 can be found on pages 91 through 101 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 103 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 $160,550,829 at the close of the
most recent fiscal year.
The largest portion of the City's net position ($98,257,502 or 61.20%) reflects its investment in capital assets, which includes: land
infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
19
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2020
2020 2019 2020 2019 2020 2019
Current and other assets 77,873,628$ 78,587,258$ 18,326,844$ 25,042,033$ 96,200,472$ 103,629,291$
Capital assets 72,579,894 68,784,513 81,248,474 76,186,001 153,828,368 144,970,514
Total assets 150,453,522 147,371,771 99,575,318 101,228,034 250,028,840 248,599,805
Deferred outflows of resources 4,617,608 6,222,876 - - 4,617,608 6,222,876
Long-term liabilities outstanding 38,175,263 38,201,286 36,416,500 36,385,096 74,591,763 74,586,382
Other liabilities 6,776,783 7,613,928 4,888,553 5,387,561 11,665,336 13,001,489
Total liabilities 44,952,046 45,815,214 41,305,053 41,772,657 86,257,099 87,587,871
Deferred inflows of resources 7,838,520 14,322,104 - - 7,838,520 14,322,104
Net investment in capital assets 54,471,240 52,560,591 43,786,262 43,450,307 98,257,502 96,010,898
Restricted 38,473,882 35,743,847 - - 38,473,882 35,743,847
Unrestricted 9,335,442 5,152,891 14,484,003 16,005,070 23,819,445 21,157,961
Total Net Position 102,280,564$ 93,457,329$ 58,270,265$ 59,455,377$ 160,550,829$ 152,912,706$
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 (23.96%) represents resources that are subject to external restrictions on how they may be used.
The remaining portion (14.84%) may be used to meet the City's ongoing obligations.
Current and other assets decreased by over $7.4 million during 2020. This relates to the usage of current assets to fund increases
in capital assets which increased by $8.8 million.
The governmental activities had a significant decrease 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, 2020
Governmental Activities
Governmental activities resulted in an increase of the City's net position by $8,823,235 (9.44%). Key elements of the changes are as
follows:
Revenues:2020 2019 2020 2019 2020 2019
Program revenues
Charges for services 1,946,890$ 2,781,595$ 18,300,223$ 22,857,361$ 20,247,113$ 25,638,956$
Operating grants and contributions 2,607,134 9,562,139 - - 2,607,134 9,562,139
Capital grants and contributions 3,148,955 3,148,710 - 455,363 3,148,955 3,604,073
General revenues
Property taxes 20,136,395 19,073,449 - - 20,136,395 19,073,449
Other taxes 7,127,701 6,445,854 - - 7,127,701 6,445,854
Grants and contributions not
restricted to specific programs 4,432,381 2,239,180 449,232 - 4,881,613 2,239,180
Unrestricted investment earnings 971,753 1,271,500 480,975 656,456 1,452,728 1,927,956
Gain on disposal of capital assets 82,875 58,869 - - 82,875 58,869
Total revenues 40,454,084 44,581,296 19,230,430 23,969,180 59,684,514 68,550,476
Expenses:
General government 4,834,450 4,423,425 - - 4,834,450 4,423,425
Public safety 13,057,043 12,706,644 - - 13,057,043 12,706,644
Public works 6,450,769 12,787,805 - - 6,450,769 12,787,805
Community services 171,344 181,159 - - 171,344 181,159
Parks and recreation 3,218,266 3,827,299 - - 3,218,266 3,827,299
Economic development 2,872,886 2,146,011 - - 2,872,886 2,146,011
Interest on long-term debt 634,139 666,343 - - 634,139 666,343
Municipal liquor - - 5,699,529 6,775,430 5,699,529 6,775,430
Earle Brown Heritage Center - - 3,034,695 5,242,416 3,034,695 5,242,416
Water utility - - 4,377,809 4,148,609 4,377,809 4,148,609
Sanitary sewer utility - - 4,551,331 4,546,350 4,551,331 4,546,350
Storm drainage utility - - 2,441,109 2,407,046 2,441,109 2,407,046
Street light utility - - 306,619 333,744 306,619 333,744
Recycling utility - - 396,402 410,610 396,402 410,610
Total expenses 31,238,897 36,738,686 20,807,494 23,864,205 52,046,391 60,602,891
Change in net position
before transfers 9,215,187 7,842,610 (1,577,064) 104,975 7,638,123 7,947,585
Transfers - 325,487 - (325,487) - -
Transfers - capital assets (391,952) (1,016,734) 391,952 1,016,734 - -
Change in net position 8,823,235 7,151,363 (1,185,112) 796,222 7,638,123 7,947,585
Net Position - January 1 93,457,329 86,305,966 59,455,377 58,659,155 152,912,706 144,965,121
Net Position - December 31 102,280,564$ 93,457,329$ 58,270,265$ 59,455,377$ 160,550,829$ 152,912,706$
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, 2020
Governmental activities accounted for (115.52%) 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.
Government wide charges for services and expenses for the Earle Brown Heritage Center saw significant decreases in 2020 due to the
effects of the pandemic lockdown. Operating grants and Public Works expenses were much higher in the prior year due to the outside
funding the City received and expensed for the Brooklyn Boulevard Phase 1 project that was largely County owned property.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Charges for services
4.8%
Operating grants
6.4%
Capital grants
7.8%
Property taxes
49.8%
Other taxes
17.6%
Other general revenues
11.2%Investment earnings
2.4%
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, 2020
Business-type Activities
Business-type activities decreased net position by $1,185,112, which accounts for (-15.52%) 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 Sanitary Sewer, Water, Street Light, and Recycling Utilities.
Net position of the Municpal Liquor fund, Earle Brown Heritage Center, and Storm Drainage Utility decreased during 2020.
Municipal liquor
27.4%
Earle Brown Heritage
Center 14.6%
Water utility
21.0%
Sanitary sewer utility
21.9%
Storm drainage utility
11.7%Street Light Utility
1.5%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
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, 2020
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 $57,135,658, which
is an increase of $2,823,146 (5.20%) from the previous year. The unassigned fund balance, which is not subject to internal or
external constraints upon its use, is $12,136,345, or 21.24% of total fund balance. A small portion of the fund balance, $85,703
(0.15%) 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: $34,032,886 (59.57%) of restricted fund balance; $7,631,587 (13.36%) of committed
fund balance; and $3,249,137 (5.68%) 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 $14,205,568.
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 $12,352,562, represents 56.13% of the current year General fund expenditures. Total
General fund balance represents 64.55% of those same expenditures.
The fund balance of the City’s General fund increased by $1,681,351 (13.42%) from the previous year. The City had budgeted for a
break-even year in 2020, however there was a positive variance in revenues of $304,632, and expenditures and transfers out of
$1,376,719. The revenue variance was driven by unbudgeted Coronavirus Aid, Relief, and Economic Security (CARES) Act grant funding
which was offset by significant negative variances in lodging taxes and charges for services due to various Covid-19 related shutdowns.
The largest expenditure variances were in Parks and Recreation due to shutdown of the Community Center for a large portion of the year
among other programs, and in economic development related to reduced lodging tax payments forwarded to North Metro Tourism Board.
The Tax Increment District No. 3 fund has a total fund balance of $23,057,146 at the end of the year. The increase in fund balance
was $1,442,611 (6.67%) from the previous year. The fund received $5,201,153 in tax increment revenues, expended $1,330,802 on
economic development and transferred $2,796,461 for debt service. As of December 31, 2020 the fund has total assets held for
resale of $17,860,307, the largest contributor to the decrease from prior year was transfer of property to C Alan Homes.
The Debt Service fund has a total fund balance of $4,398,682 at the end of the year. The increase in fund balance was $407,360
(10.21%) 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 $773,207, a decrease of $840,092 (52.07%) from the previous year. The
decrease was the result of the Brooklyn Boulevard improvement project.
The Municipal State Aid Construction fund has a fund balance of $2,672,384 at the end of the year. The increase in fund balance was
$1,378,249 (106.5%) from the previous year. As of December 31, 2020 the fund had a cash balance of $3,108,623 and a receivable
balance in the amount of $2,480,464 in Municipal State Aid Construction funds.
The Special Assessments Construction fund has an ending fund balance of $1,480,133 a decrease of $1,261,930 from the previous
year. The fund incurred $1,841,451 of capital expenditures during the year primarily for Grandview North Area neighborhood
infrastructure reconstruction project.
The Street Reconstruction fund has an ending fund balance of $5,129,774, a decrease of $1,312,715 from the prior year. Bond
proceeds were received in the amount of $2,036,687 to help fund capital expenditures of $4,227,779 during the year, primarily for
Grandview North 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, 2020
The enterprise funds have a combined ending net position of $60,918,786, of which $17,132,524 (28.12%) 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 113.55% 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 break-even year in 2020,
however there was a positive variance in revenues of $304,632, and expenditures and transfers of $1,376,719. The revenue variance
was driven by unbudgeted CARES grant funding which was offset by significant negative variances in lodging taxes and charges for
services due to various Covid-19 related shutdowns. The largest expenditure variances were in Parks and Recreation due to shutdown
of the Community Center for a large portion of the year among other programs, and in economic development related to reduced
lodging tax payments forwarded to North Metro Tourism Board.
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 $153,828,368 (net of accumulated depreciation). This investment in capital assets includes: land, buildings, infrastructure,
machinery and equipment, and construction in progress. The City's investment in capital assets increased $8,857,854 (6.11%) from the
previous year.
Major capital asset events during the current year included the following:
•The Interstate Area neighborhood infrastructure reconstruction project was partially completed, with a total
cost of $8,733,849 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 partially completed, with a total cost of $5,381,051 (including previous
years). This amount includes work on streets, water, sewer, storm, and street light utilities.
•The Brooklyn Boulevard street reconstruction project (49th Avenue to Bass Lake Road) continued construction, with a total of
$15,659,473 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. Phase II Engineering and Planning also got underway during 2020 totalling $1,497,673.
•The Bellvue Mill and Overlay project was completed, with a total cost of $2,114,882 (including previous years). This
amount includes work on streets, water, sewer, storm, and street light utilities.
•The Rehabilitation of Water Tower #1 was completed at a total cost of $781,799.
•The City completed construction of a municipal liquor store with total costs of $2,952,674.
•The Central Garage purchased or completed setup of 18 pieces of machinery & equipment during the year. The total outlay for
machinery and equipment during the year was $923,898
25
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2020
2020 2019 2020 2019 2020 2019
Land 5,632,883$ 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 11,469,260 5,699,286 11,855,805 6,920,806 23,325,065 12,620,092
Land improvements - - 238,599 267,754 238,599 267,754
Other land improvements 5,840,636 6,209,125 - - 5,840,636 6,209,125
Buildings and improvements 9,188,779 9,905,593 24,820,509 22,316,360 34,009,288 32,221,953
Machinery and equipment 4,484,842 4,536,876 370,749 416,323 4,855,591 4,953,199
Street infrastructure 35,874,790 36,712,046 - - 35,874,790 36,712,046
Street light systems - - 576,172 646,273 576,172 646,273
Mains and lines - - 40,677,476 42,909,321 40,677,476 42,909,321
Total 72,579,894$ 68,784,513$ 81,248,474$ 76,186,001$ 153,828,368$ 144,970,514$
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 $61,371,445.
2020 2019 2020 2019 2020 2019
General obligation tax increment bonds 7,300,000$ 9,650,000$ -$ -$ 7,300,000$ 9,650,000$
General obligation improvement bonds 16,739,519 16,525,276 1,115,481 1,294,724 17,855,000 17,820,000
General obligation revenue bonds - - 18,905,000 17,350,000 18,905,000 17,350,000
General obligation lease revenue bonds - - 2,520,000 2,520,000 2,520,000 2,520,000
General obligation revenue notes - - 14,791,445 15,773,445 14,791,445 15,773,445
Unamortized premiums (discounts)1,405,244 1,463,854 1,917,557 1,883,170 3,322,801 3,347,024
Compensated absences 1,552,660 1,408,546 - - 1,552,660 1,408,546
Net pension liability 13,240,629 11,346,322 - - 13,240,629 11,346,322
Total OPEB liability 2,451,494 2,038,900 - - 2,451,494 2,038,900
Total 42,689,546$ 42,432,898$ 39,249,483$ 38,821,339$ 81,939,029$ 81,254,237$
The City’s total outstanding bonded debt decreased by $1,742,000 during the current fiscal year, from $63,113,445 to $61,371,445.
The City retired $6,527,000 in principal in 2020, and issued $4,785,000 in new debt for infrastructure projects that included the
Grandview North Area Infrastructure Improvement Project and rehabilitation of Water Tower #1.
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 $68,409,378. 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 67 through 71 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, 2020
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 2021 fiscal year.
•The unemployment rate for the City is 8.7% at the end of the 2020 fiscal year, which is an increase from the rate of 3.6% a
year ago. This compares to the State’s average unemployment rate of 6.2% and the national average of 8.1%.
•An increase in estimated taxable market value of 7.09% from taxes payable 2020 to 2021. The taxable market value increase was
driven by significant increases in residential property values (6.2%) and apartment property values (9.7%).
•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.
•As a result of the impact of COVID 19 on the travel and tourism industry the City's collection of lodging tax was significantly impacted.
Net revenues in 2020 were approximately 50% of budget and the City plans to offset some of the continued shortfall into 2021 with
fund balance reserves untill the industry recovers.
•The COVID 19 pandemic amplified the need for emergency preparedness. CARES funding was utilized to equip the emergency
operations center with better technlogy. Going forward the City will review and expand funds available for future emergency response.
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 that 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 2020 was $14,121,566 (59.45%) of the adopted 2021 budgeted expenditures. The City intends to make a Capital Improvements
fund transfer of $1,372,967 from the General fund during 2021.
Requests for Information
This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430.
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28
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2020
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 46,891,591$ 16,596,060$ 63,487,651$
Receivables:
Accounts - net 436,152 2,876,005 3,312,157
Taxes 561,623 - 561,623
Special assessments 5,374,273 478,150 5,852,423
Internal balances 2,648,521 (2,648,521) -
Due from other governments 2,552,789 - 2,552,789
Prepaid items 52,245 243,861 296,106
Inventories 54,410 781,289 835,699
Notes receivable 59,216 - 59,216
Assets held for resale 18,295,285 - 18,295,285
Capital assets:
Nondepreciable 17,190,847 14,564,969 31,755,816
Depreciable 55,389,047 66,683,505 122,072,552
Net pension asset 947,523 - 947,523
Total assets 150,453,522 99,575,318 250,028,840
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources 4,076,073 - 4,076,073
Deferred OPEB resources 541,535 - 541,535
Total deferred outflows of resources 4,617,608 - 4,617,608
LIABILITIES
Accounts payable 871,272 477,799 1,349,071
Contracts payable 156,251 125,068 281,319
Accrued salaries and wages 510,863 83,221 594,084
Accrued interest payable 300,877 343,808 644,685
Due to other governments 146,401 106,565 252,966
Deposits payable 275,245 587,673 862,918
Unearned revenue 1,591 331,436 333,027
Compensated absences payable:
Due within one year 155,266 - 155,266
Due in more than one year 1,397,394 - 1,397,394
Total OPEB liability:
Due in more than one year 2,451,494 - 2,451,494
Bonds and net pension liability payable:
Due within one year 4,359,017 2,832,983 7,192,000
Due in more than one year 34,326,375 36,416,500 70,742,875
Total liabilities 44,952,046 41,305,053 86,257,099
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 4,840,090 - 4,840,090
Deferred OPEB resources 82,111 - 82,111
State aid received for subsequent years..2,916,319 - 2,916,319
Total deferred inflows of resources 7,838,520 - 7,838,520
NET POSITION
Net investment in capital assets 54,471,240 43,786,262 98,257,502
Restricted for:
Tax increment financing 25,284,162 - 25,284,162
Economic development 1,866,516 - 1,866,516
Law enforcement enhancements 11,158 - 11,158
Debt service 7,873,661 - 7,873,661
Pension benefits 766,001 - 766,001
State-aid street systems 2,672,384 - 2,672,384
Unrestricted 9,335,442 14,484,003 23,819,445
Total net position 102,280,564$ 58,270,265$ 160,550,829$
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, 2020
Charges For
FUNCTIONS/PROGRAMS Expenses Services
Government activities:
General government 4,834,450$ 412,993$
Public safety 13,057,043 808,885
Public works 6,450,769 13,451
Community services 171,344 -
Parks and recreation 3,218,266 408,515
Economic development 2,872,886 303,046
Interest on long-term debt 634,139 -
Total government activities 31,238,897 1,946,890
Business-type activities:
Municipal liquor 5,699,529 5,503,163
Earle Brown Heritage Center 3,034,695 1,309,634
Water utility 4,377,809 4,261,455
Sanitary sewer utility 4,551,331 4,662,764
Storm drainage utility 2,441,109 1,691,946
Street light utility 306,619 476,766
Recycling utility 396,402 394,495
Total business-type activities 20,807,494 18,300,223
Total 52,046,391$ 20,247,113$
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
-$ -$ (4,421,457)$ -$ (4,421,457)$
1,005,949 - (11,242,209) - (11,242,209)
1,527,479 3,138,757 (1,771,082) - (1,771,082)
- - (171,344) - (171,344)
36,557 10,198 (2,762,996) - (2,762,996)
37,149 - (2,532,691) - (2,532,691)
- - (634,139) - (634,139)
2,607,134 3,148,955 (23,535,918) - (23,535,918)
- - - (196,366) (196,366)
- - - (1,725,061) (1,725,061)
- - - (116,354) (116,354)
- - - 111,433 111,433
- - - (749,163) (749,163)
- - - 170,147 170,147
- - - (1,907) (1,907)
- - - (2,507,271) (2,507,271)
2,607,134$ 3,148,955$ (23,535,918) (2,507,271) (26,043,189)
General revenues:
Property taxes 20,136,395 - 20,136,395
Tax increments 6,566,099 - 6,566,099
Lodging taxes 561,602 - 561,602
Grants and contributions not
restricted to specific programs 4,432,381 449,232 4,881,613
Unrestricted investment earnings 971,753 480,975 1,452,728
Gain on disposal of capital asset 82,875 - 82,875
Transfers - capital assets (391,952) 391,952 -
Total general revenues and transfers 32,359,153 1,322,159 33,681,312
Change in net position 8,823,235 (1,185,112) 7,638,123
Net position - January 1 93,457,329 59,455,377 152,912,706
Net position - December 31 102,280,564$ 58,270,265$ 160,550,829$
31
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2020
Tax
Increment Debt
General District No. 3 Service
ASSETS
Cash and investments 14,607,156$ 5,247,197$ 4,376,976$
Receivables:
Accounts - net 171,268 7,500 -
Current taxes 130,172 20,952 10,261
Delinquent taxes 198,267 199,114 -
Special assessments 75,131 - 3,787,301
Due from other funds 204,852 - -
Due from other governments 23,920 - -
Notes receivable - - -
Inventories 32,659 - -
Prepaid items 51,343 - -
Advances to other funds - - -
Assets held for resale - 17,860,307 -
Total assets 15,494,768 23,335,070 8,174,538
LIABILITIES
Accounts payable 175,782 68,075 -
Contracts payable - - -
Accrued salaries and wages 485,256 - -
Due to other funds - - -
Due to other governments 97,975 7,844 -
Deposits payable 258,970 1,856 -
Unearned revenue 556 1,035 -
Advances from other funds - - -
Total liabilities 1,018,539 78,810 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 198,267 - -
Unavailable revenue - tax increments - 199,114 -
Unavailable revenue - special assessments 72,394 - 3,775,856
Unavailable revenue - intergovernmental - - -
Total deferred inflows of resources 270,661 199,114 3,775,856
FUND BALANCES (DEFICITS)
Nonspendable 84,002 - -
Restricted - 23,057,146 4,398,682
Committed - - -
Assigned 1,769,004 - -
Unassigned 12,352,562 - -
Total fund balances 14,205,568 23,057,146 4,398,682
Total liabilities, deferred inflows of
resources and fund balances 15,494,768$ 23,335,070$ 8,174,538$
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
1,110,319$ 3,108,623$ 1,579,756$ 5,089,944$ 5,314,031$ 40,434,002$
6,493 - - 185,966 7 371,234
- - - - 2,857 164,242
- - - - - 397,381
524 - 1,511,317 - - 5,374,273
- - - - - 204,852
10,000 2,480,464 - - 30,851 2,545,235
- - - - 59,216 59,216
- - - - 799 33,458
- - - - 902 52,245
- - - - 356,954 356,954
- - - - 434,978 18,295,285
1,127,336 5,589,087 3,091,073 5,275,910 6,200,595 68,288,377
290,424 - 30,087 127,235 152,496 844,099
63,181 - 74,169 18,901 - 156,251
- - - - 13,533 498,789
- - - - 204,852 204,852
- 384 - - 39,577 145,780
- - - - 14,419 275,245
- - - - - 1,591
- - - - 356,954 356,954
353,605 384 104,256 146,136 781,831 2,483,561
- - - - - 198,267
- - - - - 199,114
524 - 1,506,684 - - 5,355,458
- 2,916,319 - - - 2,916,319
524 2,916,319 1,506,684 - - 8,669,158
- - - - 1,701 85,703
- 2,672,384 - - 3,904,674 34,032,886
773,207 - - 5,129,774 1,728,606 7,631,587
- - 1,480,133 - - 3,249,137
- - - - (216,217) 12,136,345
773,207 2,672,384 1,480,133 5,129,774 5,418,764 57,135,658
1,127,336$ 5,589,087$ 3,091,073$ 5,275,910$ 6,200,595$ 68,288,377$
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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, 2020
Fund balances - governmental funds 57,135,658$
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 121,577,946
Accumulated depreciation (52,638,738)
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 (24,039,519)
Accrued interest payable (300,877)
Unamortized premium (1,405,244)
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 198,267
Delinquent tax increments receivable 199,114
Special assessments receivable 5,355,458
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 947,523
Deferred outflows related to the City's Fire Relief Association Pension Fund
Change of assumptions 110,343
Contributions to the plan subsequent to the measurement date 177,079
Deferred inflows related to City's Fire Relief Association Pension Fund
Grant funding of contributions to the plan subsequent to the measurement date (177,079)
Net difference between expected and actual liability, projected and actual investment earnings, and change
of assumptions (291,865)
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.(4,567,502)
Total net position - governmental activities 102,280,564$
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, 2020
Tax
Increment Debt
General District No. 3 Service
REVENUES
Property taxes 18,238,911$ -$ 1,456,676$
Tax increments - 5,201,153 -
Lodging taxes 561,602 - -
Franchise fees - - -
Licenses and permits 991,972 - -
Intergovernmental 3,371,120 - -
Charges for services 293,498 241,029 -
Special assessments 63,154 - 1,143,880
Fines and forfeits 155,462 - -
Investment earnings (net of market value adjustment)266,188 92,277 74,597
Miscellaneous 156,714 35,415 -
Total revenues 24,098,621 5,569,874 2,675,153
EXPENDITURES
Current:
General government 3,971,106 - -
Public safety 12,267,694 - -
Public works 2,034,162 - -
Community services 171,344 - -
Parks and recreation 2,368,409 - -
Economic development 632,739 1,330,802 -
Nondepartmental 547,400 - -
Capital outlay:
General government 752 - -
Public safety - - -
Public works - - -
Parks and recreation 13,290 - -
Debt service:
Principal - - 4,090,757
Interest - - 756,623
Fiscal agent fees - - 11,759
Bond issuance costs - - -
Total expenditures 22,006,896 1,330,802 4,859,139
Excess (deficiency) of revenues
over (under) expenditures 2,091,725 4,239,072 (2,183,986)
OTHER FINANCING SOURCES (USES)
Transfers in - - 2,591,346
Issuance of debt - - -
Premium on issuance of debt - - -
Transfers out (410,374) (2,796,461) -
Total other financing sources (uses)(410,374) (2,796,461) 2,591,346
Net change in fund balance 1,681,351 1,442,611 407,360
Fund balances - January 1 12,524,217 21,614,535 3,991,322
Fund balances - December 31 14,205,568$ 23,057,146$ 4,398,682$
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
-$ -$ -$ -$ 405,209$ 20,100,796$
- - - - 1,195,244 6,396,397
- - - - - 561,602
- - - 738,213 - 738,213
- - - - - 991,972
2,444,615 1,412,471 - - 607,037 7,835,243
- - 1,065 - 293,840 829,432
- - 563,786 - - 1,770,820
- - - - 640 156,102
12,296 72,176 17,527 175,021 117,823 827,905
- - - - 32,987 225,116
2,456,911 1,484,647 582,378 913,234 2,652,780 40,433,598
- - - - 232,689 4,203,795
- - - - 121,488 12,389,182
- 105,834 2,857 - - 2,142,853
- - - - - 171,344
- - - - 328,679 2,697,088
- - - - 1,004,838 2,968,379
- - - - - 547,400
- - - - - 752
- - - - 51,889 51,889
3,361,877 564 1,841,451 4,227,779 - 9,431,671
- - - - - 13,290
- - - - - 4,090,757
- - - - - 756,623
- - - - - 11,759
- - - 34,857 - 34,857
3,361,877 106,398 1,844,308 4,262,636 1,739,583 39,511,639
(904,966) 1,378,249 (1,261,930) (3,349,402) 913,197 921,959
64,874 - - - 1,176,410 3,832,630
- - - 1,955,000 - 1,955,000
- - - 81,687 - 81,687
- - - - (761,295) (3,968,130)
64,874 - - 2,036,687 415,115 1,901,187
(840,092) 1,378,249 (1,261,930) (1,312,715) 1,328,312 2,823,146
1,613,299 1,294,135 2,742,063 6,442,489 4,090,452 54,312,512
773,207$ 2,672,384$ 1,480,133$ 5,129,774$ 5,418,764$ 57,135,658$
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, 2020
Total net change in fund balances - governmental funds 2,823,146$
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 7,971,092
Depreciation expense (3,710,814)
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.(391,952)
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)(2,036,687)
Principal repayments 4,090,757
Amortization of bond discount and premium 140,297
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.28,803
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.(156,821)
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 35,599
Tax increments 169,702
Special assessments (559,592)
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.419,705
Change in net position - governmental activities 8,823,235$
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes 18,367,857$ 18,367,857$ 18,238,911$ (128,946)$
Lodging taxes 1,180,000 1,180,000 561,602 (618,398)
Licenses and permits 1,075,001 1,075,001 991,972 (83,029)
Intergovernmental 1,813,781 1,813,781 3,371,120 1,557,339
Charges for services 790,150 790,150 293,498 (496,652)
Special assessments 50,000 50,000 63,154 13,154
Fines and forfeits 246,500 246,500 155,462 (91,038)
Investment earnings (net of market value adjustment)125,000 125,000 266,188 141,188
Miscellaneous 145,700 145,700 156,714 11,014
Total revenues 23,793,989 23,793,989 24,098,621 304,632
EXPENDITURES
Current:
General government 4,039,666 4,039,666 3,971,106 68,560
Public safety 12,548,980 12,548,980 12,267,694 281,286
Public works 2,340,295 2,340,295 2,034,162 306,133
Community services 187,000 187,000 171,344 15,656
Parks and recreation 3,243,299 3,243,299 2,368,409 874,890
Economic development 826,021 826,021 632,739 193,282
Nondepartmental 398,728 398,728 547,400 (148,672)
Capital outlay:
General government - - 752 (752)
Parks and recreation - - 13,290 (13,290)
Total expenditures 23,583,989 23,583,989 22,006,896 1,577,093
Excess of revenues
over expenditures 210,000 210,000 2,091,725 1,881,725
OTHER FINANCING SOURCES (USES)
Transfers out (210,000) (210,000) (410,374) (200,374)
Net change in fund balance - - 1,681,351 1,681,351
Fund balance - January 1 12,524,217 12,524,217 12,524,217 -
Fund balance - December 31 12,524,217$ 12,524,217$ 14,205,568$ 1,681,351$
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Tax increments 4,379,239$ 4,379,239$ 5,201,153$ 821,914$
Charges for services 164,548 164,548 241,029 76,481
Investment earnings (net of market value adjustment)42,742 42,742 92,277 49,535
Miscellaneous 1,400,000 1,400,000 35,415 (1,364,585)
Total revenues 5,986,529 5,986,529 5,569,874 (416,655)
EXPENDITURES
Current:
Economic development 842,214 842,214 1,330,802 (488,588)
Excess of revenues
over expenditures 5,144,315 5,144,315 4,239,072 (905,243)
OTHER FINANCING SOURCES (USES)
Transfers in 281,502 281,502 - (281,502)
Transfers out (2,234,513) (2,234,513) (2,796,461) (561,948)
Total other financing sources (uses)(1,953,011) (1,953,011) (2,796,461) (843,450)
Net change in fund balance 3,191,304 3,191,304 1,442,611 (1,748,693)
Fund balance - January 1 21,614,535 21,614,535 21,614,535 -
Fund balance - December 31 24,805,839$ 24,805,839$ 23,057,146$ (1,748,693)$
The notes to the financial statements are an integral part of this statement.
40
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41
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2020
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
ASSETS
Current assets:
Cash and cash equivalents 1,441,472$ 1,662,759$ 3,135,562$ 4,878,097$
Receivables:
Accounts - net 8,127 10,333 1,187,312 1,121,588
Special assessments - - 474,724 3,426
Due from other governments - - - -
Prepaid items 23,248 13,279 1,259 204,816
Inventories 695,195 36,325 49,769 -
Total current assets 2,168,042 1,722,696 4,848,626 6,207,927
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 27,002,589 2,571,416
Machinery and equipment 106,913 740,815 163,334 179,130
Street light systems - - - -
Mains and lines - - 29,157,595 27,981,910
Construction in progress - - 2,524,950 4,374,913
Total capital assets 3,653,886 15,862,227 58,869,202 35,131,093
Less: accumulated depreciation (187,530) (12,385,676) (23,867,228) (18,349,448)
Net capital assets 3,466,356 3,476,551 35,001,974 16,781,645
Total noncurrent assets 3,466,356 3,476,551 35,001,974 16,781,645
Total assets 5,634,398 5,199,247 39,850,600 22,989,572
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources - - - -
Deferred OPEB resources - - - -
Total deferred outflows of resources - - - -
LIABILITIES
Current liabilities:
Accounts payable 136,941 26,111 46,102 252,368
Contracts payable - 27,841 34,523 62,704
Accrued salaries and wages 27,020 23,134 17,503 6,291
Accrued interest payable 35,667 - 182,786 69,209
Due to other governments 64,344 - 8,709 33,512
Deposits payable - 581,548 6,125 -
Unearned revenue 29,585 1,600 300,251 -
Notes payable - - 992,000 -
Bonds payable 100,000 - 848,750 577,233
Compensated absences payable - - - -
Total current liabilities 393,557 660,234 2,436,749 1,001,317
Noncurrent liabilities:
Notes payable - - 13,799,445 -
Bonds payable 2,629,806 - 10,388,659 6,064,395
Compensated absences payable - - - -
Total OPEB liability - - - -
Net pension liability - - - -
Total noncurrent liabilities 2,629,806 - 24,188,104 6,064,395
Total liabilities 3,023,363 660,234 26,624,853 7,065,712
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources - - - -
Deferred OPEB resources - - - -
Total deferred inflows of resources - - - -
NET POSITION
Net investment in capital assets 736,550 3,476,551 10,219,490 10,680,918
Unrestricted 1,874,485 1,062,462 3,006,257 5,242,942
Total net position 2,611,035$ 4,539,013$ 13,225,747$ 15,923,860$
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
4,119,635$ 1,152,977$ 205,558$ 16,596,060$ 6,457,589$
380,352 87,504 80,789 2,876,005 64,918
- - - 478,150 -
- - - - 7,554
1,259 - - 243,861 -
- - - 781,289 20,952
4,501,246 1,240,481 286,347 20,975,365 6,551,013
587,158 - - 2,698,879 -
10,285 - - 30,620 -
- - - 570,769 -
- - - 45,584,023 166,108
109,332 - - 1,299,524 10,616,777
- 1,087,627 - 1,087,627 -
36,096,405 - - 93,235,910 -
4,059,246 896,696 - 11,855,805 -
40,862,426 1,984,323 - 156,363,157 10,782,885
(19,813,346) (511,455) - (75,114,683) (7,142,199)
21,049,080 1,472,868 - 81,248,474 3,640,686
21,049,080 1,472,868 - 81,248,474 3,640,686
25,550,326 2,713,349 286,347 102,223,839 10,191,699
- - - - 3,788,651
- - - - 541,535
- - - - 4,330,186
358 15,860 59 477,799 27,173
- - - 125,068 -
9,273 - - 83,221 12,074
56,146 - - 343,808 -
- - - 106,565 621
- - - 587,673 -
- - - 331,436 -
- - - 992,000 -
315,000 - - 1,840,983 -
- - - - 155,266
380,777 15,860 59 4,888,553 195,134
- - - 13,799,445 -
3,534,195 - - 22,617,055 -
- - - - 1,397,394
- - - - 2,451,494
- - - - 13,240,629
3,534,195 - - 36,416,500 17,089,517
3,914,972 15,860 59 41,305,053 17,284,651
- - - - 4,371,146
- - - - 82,111
- - - - 4,453,257
17,199,885 1,472,868 - 43,786,262 3,640,686
4,435,469 1,224,621 286,288 17,132,524 (10,856,709)
21,635,354$ 2,697,489$ 286,288$ 60,918,786$ (7,216,023)$
60,918,786$
(2,648,521)
58,270,265$
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, 2020
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
OPERATING REVENUES
Sales and user fees 5,490,543$ 1,304,966$ 4,206,283$ 4,662,342$
Cost of sales (3,989,186) (826,353) - -
Total operating revenues 1,501,357 478,613 4,206,283 4,662,342
OPERATING EXPENSES
Personal services 909,611 1,059,005 610,323 270,334
Supplies 33,131 72,239 316,795 26,058
Other services 271,169 614,745 932,051 3,034,503
Insurance 22,687 41,952 45,435 21,115
Utilities 55,433 153,166 219,288 36,689
Rent 190,977 - - -
Depreciation 107,432 258,709 1,800,118 977,861
Total operating expenses 1,590,440 2,199,816 3,924,010 4,366,560
Operating income (loss)(89,083) (1,721,203) 282,273 295,782
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 61,484 335,719 18,862 8,271
Investment earnings (net of market value adjustment)29,667 42,811 87,134 152,855
Special assessments - - 47,046 422
Gain on sale of capital assets - - - -
Loss on sale of capital assets (34,688) - - -
Other revenue (expense)12,620 4,668 8,126 -
Interest and fiscal agent fees (87,001) - (441,452) (172,818)
Total nonoperating revenues (expenses)(17,918) 383,198 (280,284) (11,270)
Income (loss) before contributions and transfers (107,001) (1,338,005) 1,989 284,512
Capital contributions from other funds - - - -
Transfers in - - - -
Change in net position (107,001) (1,338,005) 1,989 284,512
Net position - January 1 2,718,036 5,877,018 13,223,758 15,639,348
Net position - December 31 2,611,035$ 4,539,013$ 13,225,747$ 15,923,860$
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
1,691,946$ 449,286$ 394,495$ 18,199,861$ 3,559,356$
- - - (4,815,539) -
1,691,946 449,286 394,495 13,384,322 3,559,356
324,114 - - 3,173,387 2,155,611
13,541 481 405 462,650 353,728
529,352 52,520 394,117 5,828,457 215,456
2,759 1,132 1,880 136,960 66,115
2,800 182,385 - 649,761 537
- - - 190,977 -
1,431,750 70,101 - 4,645,971 897,970
2,304,316 306,619 396,402 15,088,163 3,689,417
(612,370) 142,667 (1,907) (1,703,841) (130,061)
24,896 - - 449,232 120,006
138,112 25,587 4,809 480,975 143,848
- - - 47,468 -
- - - - 82,875
- - - (34,688) (9,316)
- 27,480 - 52,894 28,049
(119,029) - - (820,300) -
43,979 53,067 4,809 175,581 365,462
(568,391) 195,734 2,902 (1,528,260) 235,401
391,952 - - 391,952 -
- - - - 135,500
(176,439) 195,734 2,902 (1,136,308) 370,901
21,811,793 2,501,755 283,386 62,055,094 (7,586,924)
21,635,354$ 2,697,489$ 286,288$ 60,918,786$ (7,216,023)$
(1,136,308)$
(48,804)
(1,185,112)$
Business-Type Activities
45
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2020
Municipal Earle Brown Water Sanitary Sewer
Liquor Heritage Center Utility Utility
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users 5,470,790$ 1,483,816$ 4,097,420$ 4,642,831$
Receipts from interfund services provided - - - -
Other operating receipts 74,104 340,387 26,988 8,271
Payments for interfund services received (137,197) (164,676) (208,613) (199,524)
Payments to suppliers (5,188,715) (1,648,080) (1,351,884) (2,834,173)
Payments to employees (853,079) (1,010,986) (572,533) (256,969)
Net cash flows provided (used) by operating activities (634,097) (999,539) 1,991,378 1,360,436
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in (operating)- - - -
Interfund payable (operating)- 4,862 - -
Special assessments - - 149,571 (3,004)
Intergovernmental grants - - - -
Net cash flows provided (used) by noncapital financing activities - 4,862 149,571 (3,004)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (646,385) (43,919) (2,515,184) (3,678,642)
Transfers in (capital)- - - -
Principal paid on revenue and improvement bonds - - (773,750) (460,493)
Principal paid on revenue notes - - (982,000) -
Interest paid on capital debt (75,674) - (491,456) (180,289)
Proceeds from g.o. revenue bonds - - 1,825,604 1,118,107
Proceeds from sale of assets - - - -
Net cash flows provided (used) by capital and related financing activities (722,059) (43,919) (2,936,786) (3,201,317)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 29,667 42,811 87,134 152,855
Net increase (decrease) in cash and cash equivalents (1,326,489) (995,785) (708,703) (1,691,030)
Cash and cash equivalents - January 1 2,767,961 2,658,544 3,844,265 6,569,127
Cash and cash equivalents - December 31 1,441,472$ 1,662,759$ 3,135,562$ 4,878,097$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (89,083)$ (1,721,203)$ 282,273$ 295,782$
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Depreciation 107,432 258,709 1,800,118 977,861
Other income (expense) related to operations 74,104 340,387 26,988 8,271
(Increase) decrease in assets:
Accounts receivable (347) 178,850 (17,436) (19,511)
Due from other governments - 104,238 - -
Prepaid items 5,136 18,162 2,629 6,415
Inventories 33,349 (2,514) (11,173) -
(Increase) decrease in deferred outflows of resources:
Deferred outflows for pension - - - -
Increase (decrease) in liabilities
Accounts payable (754,569) (154,984) (9,365) 90,995
Due to other governments 4,452 (18,055) 3,096 -
Net pension liability - - - -
Accrued salaries and wages 4,835 (3,129) 5,675 623
Unearned revenue (19,406) - (91,427) -
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - - - -
Net cash flows provided (used) by operating activities (634,097)$ (999,539)$ 1,991,378$ 1,360,436$
NONCASH FINANCING ACTIVITIES
Acquisitions of capital assets on account -$ -$ 34,523$ -$
Capital assets contributed from other funds -$ -$ -$ -$
Capital asset trade-ins -$ -$ -$ -$
Loss on disposal of capital assets 34,688$ -$ -$ -$
Grants deposited with pension plan -$ -$ -$ -$
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
1,690,175$ 462,270$ 398,449$ 18,245,751$ -$
- - - - 3,540,812
24,896 27,480 - 502,126 37,536
(209,735) (25,766) (11,169) (956,680) (42,314)
(376,081) (200,100) (386,578) (11,985,611) (677,965)
(305,902) - - (2,999,469) (2,254,190)
823,353 263,884 702 2,806,117 603,879
- - - - 110,000
- - - 4,862 -
- - - 146,567 -
- - - - 8,841
- - - 151,429 118,841
(2,378,098) (54,430) - (9,316,658) (923,898)
- - - - 25,500
(220,000) - - (1,454,243) -
- - - (982,000) -
(131,396) - - (878,815) -
- - - 2,943,711 -
- - - - 172,432
(2,729,494) (54,430) - (9,688,005) (725,966)
138,112 25,587 4,809 480,975 143,848
(1,768,029) 235,041 5,511 (6,249,484) 140,602
5,887,664 917,936 200,047 22,845,544 6,316,987
4,119,635$ 1,152,977$ 205,558$ 16,596,060$ 6,457,589$
(612,370)$ 142,667$ (1,907)$ (1,703,841)$ (130,061)$
1,431,750 70,101 - 4,645,971 897,970
24,896 27,480 - 502,126 139,214
(1,771) 12,984 3,954 156,723 (18,045)
- - - 104,238 -
(25) - - 32,317 550
- - - 19,662 327
- - - - 1,315,958
(21,126) 10,652 (1,345) (839,742) (85,320)
- - - (10,507) -
- - - - 1,894,307
1,999 - - 10,003 558,756
- - - (110,833) -
- - - - (3,969,777)
823,353$ 263,884$ 702$ 2,806,117$ 603,879$
-$ -$ -$ 34,523$ -$
391,952$ -$ -$ 391,952$ -$
-$ -$ -$ -$ 54,000$
-$ -$ -$ 34,688$ 9,316$
-$ -$ -$ -$ 42,474$
Business-Type Activities
47
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48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2020
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, 2020
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, 2020
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.
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2020 are planned to be eliminated in 2021. 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, 2020
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, 2020
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 position that applies 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.
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 except that PERA's fiscal year end is
June 30. 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 position that applies 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, 2020
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, 2020 the
unassigned fund balance of the General fund was 52% 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, 2020
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, 2020
For the year ended December 31, 2020 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:
Elections and voter registration 174,154$ 181,607$ (7,453)$
Assessing 210,200 239,969 (29,769)
Government buildings 939,939 1,152,247 (212,308)
Fire protection 1,556,794 1,592,343 (35,549)
Protective inspection 287,086 350,321 (63,235)
Emergency preparedness 11,500 47,801 (36,301)
Engineering department 1,080,500 1,087,684 (7,184)
Park and recreation administration 258,903 274,623 (15,720)
Community development administration 263,121 366,653 (103,532)
Nondepartmental 398,728 547,400 (148,672)
Transfers out 210,000 410,374 (200,374)
Special Revenue Funds:
Tax Increment District No. 3 842,214 1,330,802 (488,588)
Capital Project Funds:
Capital Improvements 1,331,800 3,361,877 (2,030,077)
Special Assessment Construction 1,042,300 1,844,308 (802,008)
Street Reconstruction 2,350,000 4,262,636 (1,912,636)
Nonmajor Funds:
Special Revenue Funds:
Economic Development Authority 475,088 705,483 (230,395)
Police Forfeitures 13,000 57,025 (44,025)
Centerbrook Golf Course 301,550 322,533 (20,983)
Tax Increment District No. 7 - 30,845 (30,845)
B. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2020 in the following funds:
Unassigned deficit fund balance
Nonmajor Funds:
Centerbrook Golf 199,713$
Tax Increment District No. 6 4,004
Tax Increment District No. 8 12,500
Unrestricted deficit net position
Internal Service Funds:
EE Retirement Benefit 1,932,817
Pension - GERF 7,017,266
Pension - PEPFF 6,805,858
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, 2020
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 $0.
As of December 31, 2020 the City had the following investments and maturities:
Investment Type Fair Value No maturity < 1 1 - 3 3 - 6
Negotiable certificates of deposit 22,320,852$ -$ 9,380,862$ 9,199,480$ 3,740,510$
Federal agency notes 8,506,204 - 1,522,144 6,984,060 -
Municipal bonds 11,819,342 - 1,712,762 4,514,461 5,592,119
External investment pool - 4M Fund 13,966,187 13,966,187 - - -
Money market 6,860,361 6,860,361 - - -
Total Investments 63,472,946$ 20,826,548$ 12,615,768$ 20,698,001$ 9,332,629$
As of December 31, 2020, 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 21,790,000$ 22,320,852$ 35.17%
Federal agency notes AA 8,360,000 8,506,204 13.40%
Municipal bonds A or better 11,110,000 11,819,342 18.62%
External investment pool - 4M Fund Not rated 13,966,185 13,966,187 22.00%
Money market AAA 6,860,329 6,860,361 10.81%
Total Investments 62,086,514$ 63,472,946$ 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 63,472,946$
Petty cash and change funds 14,705
Total cash, cash equivalents, and investments 63,487,651$
The deposits and investments of the City are presented in the financial statements as follows:
Statement of Net Position
Cash and investments 63,487,651$
Investment Maturities (in years)
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2020:
Investment Type 12/31/2020 Level 1 Level 2 Level 3
Investments at fair value:
Negotiable certificates of deposit 22,320,852$ -$ 22,320,852$ -$
Federal agency notes 8,506,204 - 8,506,204 -
Municipal bonds 11,819,342 - 11,819,342 -
Money market 6,860,361 6,860,361 - -
Total Investments 49,506,759$ 6,860,361$ 42,646,398$ -$
Investments at amortized cost:
External investment pool - 4M Fund 13,966,187
Total 63,472,946$
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 Home Loan Bank (5.86%).
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, 2020
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2020 are as follows:
Delinquent Delinquent Due from
Property Tax Special Other Notes
Taxes Increments Assessments Governments Receivable
Major Funds:
General 198,267$ -$ 72,394$ -$ -$
Tax Increment District No. 3 - 199,114 - - -
Debt Service - - 3,775,856 - -
Capital Improvements - - 524 - -
Municipal State Aid for Construction - - - 2,480,464 -
Special Assessment Construction - - 1,506,684 - -
Nonmajor Funds
Revolving Loan - - - - 59,216
Total 198,267$ 199,114$ 5,355,458$ 2,480,464$ 59,216$
The Economic Development Authority (EDA) offers a down payment and closing cost assistance program to home buyers purchasing
foreclosed or vacant properties as their principal residence. The program offers up to a $10,000, no-interest deferred loan that is
forgivable if the borrower resides in the property for five consecutive years. As of December 31, 2020, the balance of these loans is
$20,000. There has been an allowance for doubtful accounts recorded for the same amount, as it is fully expected that these loans will
be forgiven.
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 $1,692 ending December 1, 2023. As the
repayments are made, the City will remit 60% to the Minnesota Department of Employment and Economic Development.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land 5,632,883$ -$ -$ 5,632,883$
Easements - perpetual 88,704 - - 88,704
Construction in progress 5,699,286 7,197,360 (1,427,386) 11,469,260
Total capital assets, not being depreciated 11,420,873 7,197,360 (1,427,386) 17,190,847
Capital assets, being depreciated:
Easements - temporary 22,715 - - 22,715
Buildings and improvements 25,991,735 218,790 - 26,210,525
Land improvements 12,436,714 - - 12,436,714
Machinery and equipment 11,912,222 1,082,024 (690,149) 12,304,097
Street infrastructure 62,763,683 1,432,250 - 64,195,933
Total capital assets, being depreciated 113,127,069 2,733,064 (690,149) 115,169,984
Less accumulated depreciation for:
Easements - temporary 22,715 - - 22,715
Buildings and improvements 16,086,142 935,604 - 17,021,746
Land improvements 6,227,589 368,489 - 6,596,078
Machinery and equipment 7,375,346 1,035,185 (591,276) 7,819,255
Street infrastructure 26,051,637 2,269,506 - 28,321,143
Total accumulated depreciation 55,763,429 4,608,784 (591,276) 59,780,937
Total capital assets being depreciated - net 57,363,640 (1,875,720) (98,873) 55,389,047
Governmental activities capital assets - net 68,784,513$ 5,321,640$ (1,526,259)$ 72,579,894$
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government 158,369$
Public safety 508,861
Public works 2,548,751
Parks and recreation 493,049
Economic development 1,784
Capital assets held by the City's internal service funds are
charged to the various functions based on their usage of the assets 897,970
Total depreciation expense - governmental activities 4,608,784$
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 6,920,806 7,921,595 (2,986,596) 11,855,805
Total capital assets, not being depreciated 9,629,970 7,921,595 (2,986,596) 14,564,969
Capital assets, being depreciated:
Easements - temporary 20,335 - - 20,335
Land improvements 570,769 - - 570,769
Buildings and improvements 41,998,401 3,778,393 (192,771) 45,584,023
Machinery and equipment 1,384,542 84,745 (169,763) 1,299,524
Street light systems 1,087,627 - - 1,087,627
Mains and lines 92,290,915 944,995 - 93,235,910
Total capital assets, being depreciated 137,352,589 4,808,133 (362,534) 141,798,188
Less accumulated depreciation for:
Easements - temporary 20,335 - - 20,335
Land improvements 303,015 29,155 - 332,170
Buildings and improvements 19,682,041 1,274,244 (192,771) 20,763,514
Machinery and equipment 968,219 95,631 (135,075) 928,775
Street light systems 441,354 70,101 - 511,455
Mains and lines 49,381,594 3,176,840 - 52,558,434
Total accumulated depreciation 70,796,558 4,645,971 (327,846) 75,114,683
Total capital assets being depreciated - net 66,556,031 162,162 (34,688) 66,683,505
Business-type activities capital assets - net 76,186,001$ 8,083,757$ (3,021,284)$ 81,248,474$
Depreciation expense was charged to functions/programs of the City as follows:
Business-type activities:
Municipal liquor 107,432$
Earle Brown Heritage Center 258,709
Water utility 1,800,118
Sanitary sewer utility 977,861
Storm drainage utility 1,431,750
Street light utility 70,101
Total depreciation expense - business-type activities 4,645,971$
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
CONSTRUCTION COMMITMENTS
At December 31, 2020 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 12,670,125$ 97,134$
51st Avenue Frontage Road Improvements 616,511 3,126
Water Tower #1 Rehab 707,950 52,022
Lift Station #2 Rehab 997,000 121,034
Lift Station #6 Rehab 369,200 53,800
Bellvue Mill & Overlay 2,472,410 329,945
Interstate Area Improvements 9,667,269 1,873,608
Grandview North Area Improvements 5,074,230 183,413
Total 32,574,695$ 2,714,082$
D. INTERFUND BALANCES AND TRANSFERS
The composition of due to/from other fund balances at December 31, 2020 are as follows:
Due from Due to
Other Funds Other Funds
Major Funds:
General 204,852$ -$
Nonmajor Funds:
Centerbrook Golf Course - 192,352
Tax Increment District No. 8 - 12,500
Total 204,852$ 204,852$
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, interfund transfers, and/or receipt of federal
grant funds.
Individual fund advances to and advances from other funds at December 31, 2020 are as follows:
Advances to Advances From
Other Funds Other Funds
Nonmajor Funds:
Tax Increment District No. 5 -$ 356,954$
Tax Increment District No. 2 356,954 -
356,954$ 356,954$
The $356,954 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 $110,000 in 2019 through 2024.
Project
Fund
Fund
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
The composition of interfund transfers as of December 31, 2020 are as follows:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General -$ 410,374$
Tax Increment District No. 3 - 2,796,461
Debt Service 2,591,346 -
Capital Improvements 64,874 -
Nonmajor Funds:
Housing and Redevelopment Authority - 404,462
Economic Development Authority 404,462 -
Centerbrook Golf Course 85,000 -
Tax Increment District No. 4 561,948 -
Tax Increment District No. 5 - 356,833
Technology 125,000 -
Total governmental funds 3,832,630 3,968,130
Proprietary Funds:
Governmental activities: Internal Service
Central Garage 25,500 -
EE Comp Absences 110,000 -
Total proprietary funds 135,500 -
Total all funds 3,968,130$ 3,968,130$
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 2020, the following non-routine transfers were made
between funds:
•The General Fund transferred $25,500 to the Central Garage to fund a vehicle out of the 2020 budget that was not yet
purchased.
•The General Fund transferred $110,000 to the EE Comp Absenses fund to set aside previously levied funds for increases in
Part-Time Livable Wages during 2021.
•The General Fund transferred $64,874 to the Capital Improvements fund for Unassigned Fund Balance at 12/31/19 in excess of
52% of the 2020 General Fund budget.
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2020 was $12,000. Future minimum lease
revenues under the current agreement is as follows:
Year Total
Ending Minimum Rents
2021 12,000$
2022 12,000
2023 12,000
2024 12,000
2025 12,000
60,000$
The City leased space for both of its liquor stores for part of 2020, one of which was replaced by the new City owned building. The
remaining 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 agreements for the year ended
December 31, 2020 was $190,977. Future minimum base rent payments under the remaining agreement are as follows:
Year Total
Ending Minimum Rents
2021 93,360$
2022 93,360
2023 93,360
280,080$
The City is the lessor in an operating lease for a building being used for a sit-down restaurant. The lease was originally signed in 2011
with a ten year term with an option to extend for an additional five years. For the year ended 2020, the City received $103,029 in
rental revenue. Future minimum base rent revenues under the current agreement are as follows:
Year Total
Ending Minimum Rents
2021 96,190$
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
The City is 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. For the year ended 2020, the City received $78,810 in rental revenue. Future minimum base rent
revenues under the current agreement are as follows:
Year Total
Ending Minimum Rents
2021 78,810$
2022 78,810
2023 78,810
236,430$
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, 2020 was $13,234. Future minimum base rent payments under
the current agreement are as follows:
Year Total
Ending Minimum Rents
2021 12,012$
2022 12,012
2023 12,012
36,036$
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.
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/2020
G.O. Tax Increment Bonds:
Taxable Tax Increment Bonds of 2013A 2.00 - 3.25%12/19/2013 02/01/2022 6,040,000$ 4,335,000$
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 1,725,000 890,000
Total G.O. Tax Increment Bonds 9,840,000 7,300,000
G.O. Improvement Bonds:
Improvement Bonds, 2013B 3.00%12/19/2013 02/01/2024 4,920,000 1,495,000
Improvement Bonds, 2015A 2.00 - 2.50%07/09/2015 02/01/2026 3,416,248 2,089,519
Improvement Bonds, 2016A 2.00%10/13/2016 02/01/2027 1,820,000 1,320,000
Improvement Bonds, 2017A 2.25 - 3.00%06/08/2017 02/01/2028 3,735,000 3,035,000
Improvement Bonds, 2018A 3.00 - 5.00%07/10/2018 02/01/2029 3,835,000 3,490,000
Improvement Bonds, 2019A 4.00 - 5.00%09/12/2019 02/01/2030 3,355,000 3,355,000
Improvement Bonds, 2020A 1.00 - 2.00%11/24/2020 02/01/2031 1,955,000 1,955,000
Total G.O. Improvement Bonds 23,036,248 16,739,519
Unamortized Bond Premiums 1,970,038 1,405,244
Total - bonded indebtedness 34,846,286$ 25,444,763
Other Liabilities:
Compensated absences payable 1,552,660
Net pension liability 13,240,629
Total OPEB liability 2,451,494
Total governmental activities 42,689,546$
All long-term bonded indebtedness outstanding at December 31, 2020 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 services 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 $8,174,538 of assets accumulated in the debt
service funds for future debt service. Included within those accumulated assets, there was a combined $3,797,562 of property taxes and
special assessments receivable.
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Annual debt service requirements to maturity for governmental activities long-term debt are as follows:
G.O. Tax Increment Bonds G.O. Improvement Bonds
Principal Interest Principal Interest
2,430,000$ 166,520$ 1,929,017$ 503,727$
2,490,000 92,680 2,042,277 448,966
305,000 50,333 2,015,537 381,688
330,000 43,525 2,053,796 313,234
335,000 36,875 1,880,316 245,643
1,410,000 69,763 6,593,576 424,670
- - 225,000 1,406
7,300,000$ 459,696$ 16,739,519$ 2,319,334$
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 and 2020 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 12/31/2020
G.O. Improvement Bonds:
Improvement Bonds, 2015A 2.00 - 2.50%07/09/2015 02/01/2026 1,823,752$ 1,115,481$
G.O. Lease Revenue Bonds:
Lease Revenue Bonds of 2019B 3.00 - 4.00%09/18/2019 02/01/2035 2,520,000 2,520,000
General Obligation Taxable Utility Revenue Bonds:
Revenue Refunding Bonds of 2015A 2.00 - 2.50%07/09/2015 02/01/2026 1,660,000 860,000
Revenue Bonds of 2016A 2.00%10/13/2016 02/01/2027 3,605,000 2,615,000
Revenue Bonds of 2017A 2.25 - 3.00%06/08/2017 02/01/2028 4,625,000 3,805,000
Revenue Bonds of 2018A 3.00 - 5.00%07/10/2018 02/01/2029 4,350,000 4,005,000
Revenue Bonds of 2019A 4.00 - 5.00%09/12/2019 02/01/2030 4,790,000 4,790,000
Revenue Bonds of 2020A 1.00 - 2.00%11/24/2020 02/01/2031 2,830,000 2,830,000
Total General Obligation Taxable Utility Revenue Bonds 21,860,000 18,905,000
General Obligation Taxable Utility Revenue Notes:
PFA Revenue Note of 2015 1.00%01/20/2015 08/20/2034 19,622,797 14,791,445
Unamortized Bond Premiums 2,091,162 1,917,557
Total business-type activities 47,917,711$ 39,249,483$
2025
Total
2031
2026-2030
Governmental Activities
Year Ending
December 31
2021
2022
2023
2024
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Annual debt service requirements to maturity for business-type activities long-term debt are as follows:
G.O. Improvement Bonds
Principal Interest Principal Interest
180,983$ 22,871$ 100,000$ 83,600$
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 2,393 850,000 217,775
- - 995,000 76,425
1,115,481$ 78,840$ 2,520,000$ 659,500$
G.O. Revenue Bonds
Principal Interest Principal Interest
1,560,000$ 580,763$ 992,000$ 148,310$
1,965,000 536,169 1,002,000 138,390
2,030,000 469,119 1,012,000 128,370
2,105,000 399,175 1,022,000 118,250
2,160,000 326,206 1,033,000 108,030
8,780,000 609,272 5,320,000 383,160
305,000 1,906 4,410,445 111,800
18,905,000$ 2,922,610$ 14,791,445$ 1,136,310$
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, 2020, the liquor, water, sewer, and storm utility funds provided net revenues of
($123,398), which accounts for a debt-service coverage ratio of (3.72%) on principal and interest payments of $3,315,058.
2021
2022
2023
Total
2024
2025
2026-2030
2031-2035
Year Ending
December 31
2021
2022
2023
2024
2025
2026-2030
2031-2035
Business-Type Activities
G.O. Lease Revenue Bonds
G.O. Revenue Notes
Business-Type Activities
Total
Year Ending
December 31
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2020 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
G.O. tax increment bonds 9,650,000$ -$ (2,350,000)$ 7,300,000$ 2,430,000$
G.O. improvement bonds 16,525,276 1,955,000 (1,740,757) 16,739,519 1,929,017
Premium 1,463,854 81,687 (140,297) 1,405,244 -
Total bonds payable 27,639,130 2,036,687 (4,231,054) 25,444,763 4,359,017
Compensated absences 1,408,546 276,840 (132,726) 1,552,660 155,266
Net Pension liability:
GERF 6,573,715 1,721,186 (860,533) 7,434,368 -
PEPFF 4,772,607 2,126,814 (1,093,160) 5,806,261 -
Total OPEB liability 2,038,900 523,384 (110,790) 2,451,494 -
Total government activity
long-term liabilities 42,432,898$ 6,684,911$ (6,428,263)$ 42,689,546$ 4,514,283$
Business-type activities:
Bonds payable:
G.O. improvement bonds 1,294,724$ -$ (179,243)$ 1,115,481$ 180,983$
G.O. lease revenue bonds 2,520,000 - - 2,520,000 100,000
G.O. revenue bonds 17,350,000 2,830,000 (1,275,000) 18,905,000 1,560,000
G.O. revenue notes 15,773,445 - (982,000) 14,791,445 992,000
Premium 1,883,170 113,711 (79,324) 1,917,557 -
Total business-type activity
long-term liabilities 38,821,339$ 2,943,711$ (2,515,567)$ 39,249,483$ 2,832,983$
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.
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, 2020 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, and two Charter School Lease Revenue bonds outstanding. The aggregate amount of conduit debt as of
December 31, 2020 is $66,619,253.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
G. FUND EQUITY
Net position reported in the government-wide statement of net position at December 31, 2020 include the following:
Governmental activities
Net investment in capital assets:
Cost of capital assets 132,360,831$
Less: accumulated depreciation (59,780,937)
Less: related long-term debt outstanding (18,108,654)
Total net investment in capital assets 54,471,240
Restricted:
Tax increment financing 25,284,162
Economic development 1,866,516
Law enforcement enhancements 11,158
Debt service 7,873,661
Pension benefits 766,001
State-aid Street Systems 2,672,384
Total restricted 38,473,882
Unrestricted 9,335,442
Total governmental activities net position 102,280,564$
Related debt for governmental activities capital assets includes $16,739,519 in G.O. Improvement Bonds and $1,456,131 of premium
which was the amount issued to finance the street portion of construction projects.
Business-type activities
Net investment in capital assets:
Cost of capital assets 156,363,157$
Less: accumulated depreciation (75,114,683)
Less: related long-term debt outstanding (38,359,620)
Add: unspent bond proceeds 897,408
Total net investment in capital assets 43,786,262
Unrestricted 14,484,003
Total business-type activities net position 58,270,265$
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Aggregated fund balances reported in the governmental funds balance sheet at December 31, 2020 include the following:
Governmental funds
Nonspendable Restricted Committed Assigned
General
Inventories 32,659$ -$ -$ -$
Prepaid Items 51,343 - - -
Capital Improvements - - - 1,769,004
Tax Increment District No. 3
Tax Increment Financing - 23,057,146 - -
Debt Service
Debt Service - 4,398,682 - -
Capital Improvements
Capital Improvements - - 773,207 -
Municipal State-Aid for Construction
State-Aid street systems - 2,672,384 - -
Special Assessment Construction
Capital Improvements - - - 1,480,133
Street Reconstruction Fund
Street Improvements - - 5,129,774 -
Nonmajor Funds
Centerbrook Golf Course 799 - - -
Tax Increment Financing - 2,027,902 - -
Economic Development 902 1,865,614 - -
Law Enforcement Enhancements - 11,158 - -
Public Safety - - 8,112 -
Cable Communications - - 124,159 -
Community Recreation - - 78,475 -
Emergency Capital Improvements - - 1,171,730 -
Technology Improvements - - 346,130 -
Total fund balances 85,703$ 34,032,886$ 7,631,587$ 3,249,137$
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.
73
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 of average salary for
each of the first 10 years of service and 1.7 percent of average salary for each additional year. Under Method 2, the accrual rate for
Coordinated members is 1.7 percent of average salary 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.
Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the
postretirement increase will be 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, unreduced pension is earned when members are
age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90.
Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the
postretirement increase will be 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 2020. The City
was required to contribute 7.5 percent for Coordinated Plan members in calendar year 2020. The City's contributions to the GERF
for year ended December 31, 2020 were $649,561. The City's contributions were equal to the required contributions as set by state
statute.
74
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
2. PEPFF CONTRIBUTIONS
Police and Fire member’s contribution rates increased from 11.3 percent of pay to 11.8 percent and employer rates increased from
16.95 percent to 17.70 percent on January 1, 2020. The City contributions to the PEPFF for the year ended December 31, 2020
were $887,315. The City's contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
The City reported amounts for pension expense in the statement of activities, as well as deferred outflows, deferred inflows, and
net pension liability in the statement of net position associated with various plans as follows:
Pension Deferred Deferred Net Pension
Pension Plan Expense Outflows Inflows Liability
PERA - GERF 441,092$ 739,813$ 322,712$ 7,434,368$
PERA - PEPFF 713,552 3,048,838 4,048,434 5,806,261
PERA - PEDCP 1,623 - - -
Fire Relief Association 156,821 287,422 468,944 -
Central Pension Fund 48,624 - - -
Total 1,361,712$ 4,076,073$ 4,840,090$ 13,240,629$
1. GERF PENSION COSTS
At December 31, 2020, the City reported a liability of $7,434,368 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 million to the fund in
2020. 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
$229,207. The net pension liability was measured as of June 30, 2020, 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,
2019 through June 30, 2020, relative to the total employer contributions received from all of PERA's participating employers. At
June 30, 2020, the City's proportion was 0.1240 percent which was an increase of 0.0051 percent from its proportion measured as
of June 30, 2019.
For the year ended December 31, 2020, the City recognized pension expense of $660,193 for its proportionate share of the
GERF's pension expense. In addition, the City recognized an additional $19,948 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 and business type activities to $441,092
75
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 65,005$ 28,128$
Changes in actuarial assumptions - 269,542
Differences between projected and actual investment earnings 148,293 -
Changes in proportion 211,476 25,042
GERF contributions paid subsequent to the measurement date 315,039 -
Totals 739,813$ 322,712$
$315,039 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year Pension
Ended Expense
December 31,Amount
2021 (350,610)$
2022 61,677
2023 211,381
2024 179,614
Total 102,062$
2. PEPFF PENSION COSTS
At December 31, 2020, the City reported a liability of $5,806,261 for its proportionate share of the PEPFF's net pension liability.
The net pension liability was measured as of June 30, 2020, 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, 2019
through June 30, 2020, relative to the total employer contributions received from all of PERA's participating employers. At June
30, 2020, the City's proportion was 0.4405 percent which was a decrease of 0.0078 percent from its proportion measured as of
June 30, 2019.
The State of Minnesota contributed $13.5 million to the Police and Fire Fund in the plan fiscal year endd June 30, 2020. The
contribution consisted of $4.5 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 $4.5 million direct state was paid on
October 1, 2019. Thereafter, 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.
76
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 $4.5 million in direct state aid. The State of Minnesota's proportionate share of the net pension liability
associated with the City totaled $136,792. 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, 2020 the City recognized pension expense of $1,003,794 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 $713,552. The City recognized $42,085 as grant revenue for its proportionate share of the State of
Minnesota's pension expense for the contribution of $4.5 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 $39,645 for the year ended December 31, 2020 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
At December 31, 2020, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred
inflows of resources related to pension from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 256,552$ 268,536$
Changes in actuarial assumptions 1,895,001 3,624,420
Differences between projected and actual investment earnings 183,529 -
Changes in proportion 269,247 155,478
PEPFF contributions paid subsequent to the measurement date 444,509 -
Totals 3,048,838$ 4,048,434$
$444,509 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other
amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense
as follows:
Year Pension
Ended Expense
December 31,Amount
2021 (412,255)$
2022 (1,534,203)
2023 247,322
2024 264,798
2025 (9,767)
Total (1,444,105)$
77
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual entry-age normal actuarial cost
method and the following actuarial assumptions:
Inflation
Active Member Payroll Growth
Investment Rate of Return
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants for all
plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of
living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan and 1.0
percent per year for the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent
four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for
Police and Fire Plan was completed in 2020. The recommended assumptions for these plans were adopted by the Board and will be
effective with the July 1, 2020 actuarial valuations if approved by the state legislature.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employees Fund
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.
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.
Police and Fire Fund
Changes in Actuarial Assumptions
• The morality projection scale was changed from MP-2018 to MP-2019.
General Employees Plan
2.25% per year
3.00% per year
7.50%
2.5% per year
3.25% per year
7.50%
Police & Fire Plan
78
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 Stocks 35.50%5.10%
International Stocks 17.50%5.30%
Bonds (Fixed Income)20.00%0.75%
Alternative Assets (Private Markets)25.00%5.90%
Cash 2.00%0.00%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%. 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.
G. 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 6.50%11,914,712$ 6.50%11,572,715$
Current Discount Rate 7.50%7,434,368 7.50%5,806,261
1% Higher 8.50%3,738,443 8.50%1,035,532
H. 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
Police and Fire Fund
Sensitivity of Net Pension Liability
General Employees Fund
Asset Class
79
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2019, the membership of the Association consisted of:
Retirees and beneficiaries currently receiving benefits 14
Terminated employees entitled to benefits but not yet receiving them 15
Active plan participants - vested 8
Active plan participants - non-vested 19
Total 56
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 $8,500 per year
of service. This benefit level was placed into effect on January 1, 2019. 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.
80
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 2020. 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, 2020, the City reported an asset of $947,523 for the difference between the Fire Relief Plan Fiduciary net position
and the total pension liability. The net pension asset was measured as of December 31, 2019, and the total pension liability used to
calculate the net pension asset was determined by an actuarial valuation as of that date.
Changes in Net Pension Asset
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
Balance at 12/31/19 2,703,445$ 3,405,643$ (702,198)$
Changes for the year
Service cost 99,907 - 99,907
Interest 137,983 - 137,983
Changes of benefit terms 164,525 - 164,525
Contributions - State and local - 165,652 (165,652)
Net investment income - 503,214 (503,214)
Benefit payments (350,222) (350,222) -
Administrative expenses - (21,707) 21,707
Other changes - 581 (581)
Net changes 52,193 297,518 (245,325)
Balance at 12/31/20 2,755,638$ 3,703,161$ (947,523)$
Plan Changes since the prior measurement date include the following:
The lump sum benefit amount increased from $7,700 to $8,500
At December 31, 2020, the City reported deferred outflows of resources, and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions 110,343$ 17,076$
Difference between expected and actual liability - 128,077
Difference between projected and actual investment earnings - 146,712
Contribution paid subsequent to measurement date 177,079 177,079
Totals 287,422$ 468,944$
$177,079 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, 2021. Deferred
inflows of resources totaling $177,079 related to state aid received subsequent to the measurement date will be recognized for its
impact on the net pension liability in the year ended December 31, 2021.
81
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Pension
Ended Expense
December 31,Amount
2021 (32,730)$
2022 (67,508)
2023 14,291
2024 (80,190)
2026 (12,213)
Thereafter (3,172)
Total (181,522)$
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 January 1, 2019.
• Actuarial cost is determined using the Entry Age Normal Cost Method.
• The actuarial value of assets is market 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 2.50 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-2017, from a base year
of 2006.
Post-retirement:RP-2014 annuitant generational mortality table projected
with mortality improvement scale MP-2017 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-2017 from a base year of
2006. Male rates are adjusted by a factor of .96.
82
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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%4.76%7.26%
International Equity 15.00%5.41%7.91%
Fixed Income 30.00%2.01%4.51%
Real Estate and Alternatives 0.00%4.53%7.03%
Cash and Equivalents 10.00%0.74%3.24%
Total 100.00%6.58%
Reduced for assumed investment expense -1.40%
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 (853,630)$ (947,523)$ (1,035,823)$
of the Net Pension (Asset) Liability
Asset Class
City's Proportionate Share
83
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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, 2020 were $48,624. With regard to withdrawal from the pension plan,
the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to the CPF as pre-tax
employer contributions.
Note 7 DEFINED CONTRIBUTION PLAN
There are five City Council members of the City covered by the Public Employees Defined Contribution Plan (PEDCP), a
multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the
Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
The defined contribution plan consists of individual accounts paying a lump-sum benefit, plan benefits depend solely on amounts
contributed to the plan plus investment earnings, less administrative expenses, therefore, there is no future liability to the employer.
Minnesota Statutes, Chapter 353(D.03), specifies plan provisions, including the employee and employer contribution rates for those
qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent of salary
which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares
in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2
percent of employer contributions and twenty-five hundredths of 1 percent (.0025%) of the assets in each member's account annually.
Pension expense for the year is equal to contributions made. Total contributions made by the City during fiscal year 2020 were:
For the Year Ended:Employee Employer Employee Employer Employee Employer
1,623$ 1,623$ 5.0%5.0%5.0%5.0%December 31, 2020
Required Rate for Employees &
Employers Percentage of Covered PayrollContribution Amount
84
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 $131,937.
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 $2,451,494 as of year-end was measured as of December 31, 2019, 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 2.74%
20-year municipal bond yield 2.74%
Inflation rate 2.00%
Salary increases 3.25%
Medical trend rate 7.67% grading to 5.00% over 8 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 2.74
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 4.09 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 55 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%.
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning balance – January 1, 2020 2,038,900$
Changes for the year
Service cost 114,736
Interest 85,818
Differences between expected and actual experience 45,132
Changes of assumptions 277,698
Benefit payments (110,790)
Total net changes 412,594
Ending balance – December 31, 2020 2,451,494$
Assumption changes since the prior measurement date include the following:
• 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.
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 1.74%2.74%3.74%
Total OPEB Liability 2,688,402$ 2,451,494$ 2,241,541$
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 6.67 to 4.00%7.67 to 5.00%8.67 to 6.00%
over 8 years over 8 years over 8 years
Total OPEB Liability 2,174,590$ 2,451,494$ 2,783,035$
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
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 $240,933. As of year-end, the City reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Changes in actuarial assumptions 284,406$ 82,111$
Difference between expected and actual economic experience 125,192 -
Contribution paid subsequent to measurement date 131,937 -
Totals 541,535$ 82,111$
A total of $131,937 reported as defered outflows of resources related to OPEB resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2021.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year OPEB
Ended Expense
December 31,Amount
2021 40,379$
2022 40,379
2023 40,379
2024 40,379
2025 40,379
Thereafter 125,592
Total 327,487$
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, 2020
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.
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 2020 financial statements of the City is $1,101,229 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 2020 health and life insurance costs paid by the City was $1,876,463. 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
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2020
E. TAX ABATEMENTS
The City entered into a property tax abatement with Hurlbut-Zeppa Charitable Trust AR under Minnesota Statute 469.1813. Under the
Statute the City may grant a prospective property tax abatement if (1) it expects the benefits to the City of the abatement agreement to
at least equal the costs of the proposed agreement or intends the abatement to phase in a property tax increase and (2) it finds that
doing so is in the public interest. The abatement increased the City's tax base and provided employment opportunities within the City.
For the year ended December 31, 2020, the City abated $101,575 of property taxes to Hurlbut-Zeppa Charitable Trust AR for the
construction and opening of the Embassy Suites Hotel. The abatement is equal to the City's portion of increased property taxes paid on
the increased market value of the development of the property for payable years 2010 to 2019.
F. SUBSEQUENT EVENT
The City is exposed to numerous liabilities subsequent to year end resulting from an Officer involved shooting that received national
media attention. These include potential settlements with the victim's family, security costs to prevent the destruction of police
headquarters by protestors, and potential lawsuits involving the dismissal of employees without due process. The results of these
items cannot be estimated at this time and no potential liabilities have been recorded as of year end.
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CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS
For the Year Ended December 31, 2020
2020 2019 2018
Total OPEB liability
Service cost 114,736$ 143,059$ 130,096$
Interest 85,818 71,986 71,659
Differences between expected and actual experience 45,132 43,355 73,751
Changes of assumptions 277,698 (103,957) 51,929
Benefit payments (110,790) (130,222) (156,791)
Net change in total OPEB liability 412,594 24,221 170,644
Total OPEB liability - beginning of year 2,038,900 2,014,679 1,844,035
Total OPEB liability - end of year 2,451,494$ 2,038,900$ 2,014,679$
Covered payroll 12,599,989$ 12,122,568$ 11,524,587$
Total OPEB liability as a percentage of covered payroll 19.46%16.82%17.48%
Note 1: 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.
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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 Contributions as a
Required to the Statutorily Required Deficiency Covered Percentage of
Fiscal Year Ending Contributions (a)Contributions (b)(Excess) (a -b)Payroll** (d)Covered Payroll (b/d)
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 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, 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".
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
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
94
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 $6.0 million, which meets the special funding situation definition, was due September 2015.
2015 Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030, and 2.5 percent per year thereafter, to 1.0 percent per year
through 2035, and 2.5 percent per year thereafter.
95
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Required Supplementary Information (Last Ten Years*)
Statutorily Contributions in Relation Contribution Contributions as a
Required to the Statutorily Required Deficiency Covered Percentage of
Fiscal Year Ending Contributions (a)Contributions (b)(Excess) (a -b)Payroll** (d)Covered Payroll (b/d)
December 31, 2020 887,315$ 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, 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".
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.
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.
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CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CHANGES IN NET PENSION ASSET AND RELATED RATIO
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years*)
2020 2019 2018 2017 2016 2015
Total Pension Liability
Service Cost 99,907$ 107,405$ 98,240$ 120,802$ 88,266$ 85,904$
Interest 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 - (141,409) - (75,613) - -
Changes of Assumptions - 52,746 44,974 (50,396) 358,422 -
Benefit Payments (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Net Change in Total Pension Liability 52,193 (536,161) 203,396 59,525 560,891 (353,395)
Total Pension Liability - Beginning of Year 2,703,445 3,239,606 3,036,210 2,976,685 2,415,794 2,769,189
Total Pension Liability - End of Year 2,755,638 2,703,445 3,239,606 3,036,210 2,976,685 2,415,794
Plan Fiduciary Net Position
Contributions - State and Local 165,652 164,147 154,366 147,002 143,061 158,545
Net Investment Income 503,214 (236,910) 557,117 275,625 (181,185) 149,635
Benefit Payments (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Administrative Expenses (21,707) (15,708) (15,024) (9,495) (14,560) (10,080)
Other 581 - - - - -
Net Change in Plan Fiduciary Net Position 297,518 (832,682) 564,851 276,964 (111,700) (319,441)
Plan Fiduciary Net Position - Beginning of Year 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 3,703,161 3,405,643 4,238,325 3,673,474 3,396,510 3,508,210
Net Pension Liability (Asset) - End of Year (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 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
Net Pension Liability as a Percentage of Covered Payroll 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).
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 withdrawel 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 $7,600
2016 Changes in Actuarial Assumptions
The discount rate was changed from 7.00% to 5.75% to reflect updated capital market assumptions.
99
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Actuarially Determined Contribution 67,773$ 85,089$ 85,089$ 71,203$ 101,453$ 101,453$ 111,463$ 111,463$ 135,929$ 183,928$
Contributions in Relation to the
Actuarially Determined Contribution 170,652 159,147 154,366 147,002 143,061 158,545 134,340 151,503 101,119 165,697
Contribution Deficiency (Excess)(102,879) (74,058) (69,277) (75,799) (41,608) (57,092) (22,877) (40,040) 34,810 18,231
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:
Actuarilly 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
100
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, 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
December 31, 2011 50,603
101
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102
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. 4
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 soil remediation projects within the France Avenue Business Park.
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
103
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.
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 has 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.
104
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.
105
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2020
Total
Special Capital Nonmajor
Revenue Project Governmental
ASSETS
Cash and investments 3,785,923$ 1,528,108$ 5,314,031$
Receivables:
Accounts - net 7 - 7
Current taxes 2,857 - 2,857
Due from other governments 30,851 - 30,851
Inventory 799 - 799
Prepaid items 902 - 902
Notes receivable 59,216 - 59,216
Advances to other funds 356,954 - 356,954
Assets held for resale 434,978 - 434,978
Total assets 4,672,487$ 1,528,108$ 6,200,595$
LIABILITIES
Accounts payable 142,248$ 10,248$ 152,496$
Accrued salaries and wages 13,533 - 13,533
Due to other funds 204,852 - 204,852
Due to other governments 39,577 - 39,577
Deposits payable 14,419 - 14,419
Advances from other funds 356,954 - 356,954
Total liabilities 771,583 10,248 781,831
FUND BALANCES
Nonspendable
Inventory 799 - 799
Prepaid items 902 - 902
Restricted
Tax increment financing 2,027,902 - 2,027,902
Economic development 1,865,614 - 1,865,614
Law enforcement enhancements 11,158 - 11,158
Committed
Public safety 8,112 - 8,112
Cable communications 124,159 - 124,159
Community recreation 78,475 - 78,475
Emergency capital improvements - 1,171,730 1,171,730
Technology improvements - 346,130 346,130
Unassigned (216,217) - (216,217)
Total fund balances 3,900,904 1,517,860 5,418,764
Total liabilities and fund balances 4,672,487$ 1,528,108$ 6,200,595$
106
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2020
Total
Special Capital Nonmajor
Revenue Project Governmental
REVENUES
Property taxes 405,209$ -$ 405,209$
Tax increments 1,195,244 - 1,195,244
Intergovernmental 548,844 58,193 607,037
Charges for services 293,840 - 293,840
Fines and forfeits 640 - 640
Investment earnings (net of market value adjustment)84,185 33,638 117,823
Miscellaneous 32,987 - 32,987
Total revenues 2,560,949 91,831 2,652,780
EXPENDITURES
Current:
General government - 232,689 232,689
Public safety 121,488 - 121,488
Parks and recreation 328,679 - 328,679
Economic development 1,004,838 - 1,004,838
Capital outlay:
Public safety 51,889 - 51,889
Total expenditures 1,506,894 232,689 1,739,583
Excess (deficiency) of revenues
over (under) expenditures 1,054,055 (140,858) 913,197
OTHER FINANCING SOURCES (USES)
Transfers in 1,051,410 125,000 1,176,410
Transfers out (761,295) - (761,295)
Total other financing sources (uses)290,115 125,000 415,115
Net change in fund balance 1,344,170 (15,858) 1,328,312
Fund balances - January 1 2,556,734 1,533,718 4,090,452
Fund balances - December 31 3,900,904$ 1,517,860$ 5,418,764$
107
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2020
Housing and Economic Community
Redevelopment Development Development Police Revolving Centerbrook
Authority Authority Block Grant Forfeitures Loan Golf
ASSETS
Cash and investments -$ 1,793,279$ 72,376$ 25,577$ 17,455$ 46$
Receivables:
Accounts - net - - - - - 7
Current taxes 2,857 - - - - -
Due from other governments - - - - - -
Inventory - - - - - 799
Prepaid items - 902 - - - -
Notes receivable - - - - 59,216 -
Advances to other funds - - - - - -
Assets held for resale - 12,000 - - - -
Total assets 2,857$ 1,806,181$ 72,376$ 25,577$ 76,671$ 852$
LIABILITIES
Accounts payable -$ 50,158$ -$ -$ -$ 3,872$
Accrued salaries and wages - 5,881 - - - 3,175
Due to other funds - - - - - 192,352
Due to other governments - - - - 35,530 367
Deposits payable - - - 14,419 - -
Advances from other funds - - - - - -
Total liabilities - 56,039 - 14,419 35,530 199,766
FUND BALANCES (DEFICITS)
Nonspendable
Inventory - - - - - 799
Prepaid items - 902 - - - -
Restricted
Tax increment financing - - - - - -
Economic development 2,857 1,749,240 72,376 - 41,141 -
Law enforcement enhancements - - - 11,158 - -
Committed
Public safety - - - - - -
Cable communications - - - - - -
Community recreation - - - - - -
Unassigned - - - - - (199,713)
Total fund balances (deficits)2,857 1,750,142 72,376 11,158 41,141 (198,914)
Total liabilities and fund balances 2,857$ 1,806,181$ 72,376$ 25,577$ 76,671$ 852$
108
Total
Tax Tax Tax Tax Tax Tax City Nonmajor
Increment Increment Increment Increment Increment Increment Initiative Special
District No. 2 District No. 4 District No. 5 District No. 6 District No. 7 District No. 8 Grants Revenue
932,394$ 961$ 547,262$ 83,787$ 127,232$ -$ 185,554$ 3,785,923$
- - - - - - - 7
- - - - - - - 2,857
- - - - - - 30,851 30,851
- - - - - - - 799
- - - - - - - 902
- - - - - - - 59,216
356,954 - - - - - - 356,954
422,978 - - - - - - 434,978
1,712,326$ 961$ 547,262$ 83,787$ 127,232$ -$ 216,405$ 4,672,487$
-$ -$ -$ 87,036$ -$ -$ 1,182$ 142,248$
- - - - - - 4,477 13,533
- - - - - 12,500 - 204,852
- 961 1,247 755 717 - - 39,577
- - - - - - - 14,419
- - 356,954 - - - - 356,954
- 961 358,201 87,791 717 12,500 5,659 771,583
- - - - - - - 799
- - - - - - - 902
1,712,326 - 189,061 - 126,515 - - 2,027,902
- - - - - - - 1,865,614
- - - - - - - 11,158
- - - - - - 8,112 8,112
- - - - - - 124,159 124,159
- - - - - - 78,475 78,475
- - - (4,004) - (12,500) - (216,217)
1,712,326 - 189,061 (4,004) 126,515 (12,500) 210,746 3,900,904
1,712,326$ 961$ 547,262$ 83,787$ 127,232$ -$ 216,405$ 4,672,487$
109
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, 2020
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 405,209$ -$ -$ -$ -$ -$
Tax increments - - - - - -
Intergovernmental - 395,702 - - - 1,964
Charges for services - - - - - 292,009
Fines and forfeits - - - 640 - -
Investment earnings (net of market value adjustment)- 37,721 - 1,071 335 537
Miscellaneous - 20,670 - - - -
Total revenues 405,209 454,093 - 1,711 335 294,510
EXPENDITURES
Current:
Public safety - - - 5,136 - -
Parks and recreation - - - - - 322,533
Economic development - 705,483 - - - -
Capital outlay:
Public safety - - - 51,889 - -
Total expenditures - 705,483 - 57,025 - 322,533
Excess (deficiency) of revenues
over (under) expenditures 405,209 (251,390) - (55,314) 335 (28,023)
OTHER FINANCING SOURCES (USES)
Transfers in - 404,462 - - - 85,000
Transfers out (404,462) - - - - -
Total other financing sources (uses)(404,462) 404,462 - - - 85,000
Net change in fund balance 747 153,072 - (55,314) 335 56,977
Fund balances (deficits) - January 1 2,110 1,597,070 72,376 66,472 40,806 (255,891)
Fund balances (deficits) - December 31 2,857$ 1,750,142$ 72,376$ 11,158$ 41,141$ (198,914)$
110
27700-46412 27900-46414 28000-46415 28000-46415 28000-46415 28000-46415 28600-*
Total
Tax Tax Tax Tax Tax Tax City Nonmajor
Increment Increment Increment Increment Increment Increment Initiative Special
District No. 2 District No. 4 District No. 5 District No. 6 District No. 7 District No. 8 Grants Revenue
-$ -$ -$ -$ -$ -$ -$ 405,209$
- 362,217 531,096 178,535 123,396 - - 1,195,244
- - - - - - 151,178 548,844
- - - - - - 1,831 293,840
- - - - - - - 640
19,125 4,080 14,583 886 2,086 - 3,761 84,185
5,932 6,157 - - - - 228 32,987
25,057 372,454 545,679 179,421 125,482 - 156,998 2,560,949
- - - - - - 116,352 121,488
- - - - - - 6,146 328,679
6,926 38,504 34,999 188,081 30,845 - - 1,004,838
- - - - - - - 51,889
6,926 38,504 34,999 188,081 30,845 - 122,498 1,506,894
18,131 333,950 510,680 (8,660) 94,637 - 34,500 1,054,055
- 561,948 - - - - - 1,051,410
- - (356,833) - - - - (761,295)
- 561,948 (356,833) - - - - 290,115
18,131 895,898 153,847 (8,660) 94,637 - 34,500 1,344,170
1,694,195 (895,898) 35,214 4,656 31,878 (12,500) 176,246 2,556,734
1,712,326$ -$ 189,061$ (4,004)$ 126,515$ (12,500)$ 210,746$ 3,900,904$
111
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2020
Total
Capital Nonmajor
Reserve Capital
Emergency Technology Projects
ASSETS
Cash and investments 1,171,730$ 356,378$ 1,528,108$
LIABILITIES
Accounts payable - 10,248 10,248
FUND BALANCES
Committed
Emergency capital improvements 1,171,730 - 1,171,730
Technology improvements - 346,130 346,130
Total fund balances 1,171,730 346,130 1,517,860
Total liabilities and fund balances 1,171,730$ 356,378$ 1,528,108$
112
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, 2020
Total
Capital Nonmajor
Reserve Capital
Emergency Technology Projects
REVENUES
Intergovernmental -$ 58,193$ 58,193$
Investment earnings (net of market value adjustment)26,975 6,663 33,638
Total revenues 26,975 64,856 91,831
EXPENDITURES
Current:
General government - 232,689 232,689
Excess (deficiency) of revenues
over (under) expenditures 26,975 (167,833) (140,858)
OTHER FINANCING SOURCES
Transfers in - 125,000 125,000
Net change in fund balance 26,975 (42,833) (15,858)
Fund balances - January 1 1,144,755 388,963 1,533,718
Fund balances - December 31 1,171,730$ 346,130$ 1,517,860$
113
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property taxes 18,349,805$ 18,349,805$ 18,227,466$ (122,339)$
Penalties and interest 18,052 18,052 11,445 (6,607)
Lodging tax 1,180,000 1,180,000 561,602 (618,398)
Total taxes 19,547,857 19,547,857 18,800,513 (747,344)
Special assessments 50,000 50,000 63,154 13,154
Licenses and permits:
Liquor and beer licenses 52,800 52,800 44,525 (8,275)
Building permits 550,000 550,000 406,567 (143,433)
Mechanical permits 85,000 85,000 71,123 (13,877)
Sewer and water permits 3,500 3,500 2,440 (1,060)
Plumbing permits 75,000 75,000 133,209 58,209
Garbage licenses 3,290 3,290 2,770 (520)
Mechanical licenses 9,000 9,000 9,345 345
Service station licenses 2,190 2,190 2,230 40
Vehicle dealer licenses 1,500 1,500 1,500 -
Cigarette licenses 2,850 2,850 3,150 300
Sign permits 3,500 3,500 1,558 (1,942)
Rental dwelling licenses 210,246 210,246 195,324 (14,922)
Amusement licenses 515 515 175 (340)
Electrical Permits 65,000 65,000 88,452 23,452
ROW permits 5,000 5,000 23,550 18,550
Miscellaneous licenses and permits 5,610 5,610 6,054 444
Total licenses and permits 1,075,001 1,075,001 991,972 (83,029)
Intergovernmental:
Federal:
CARES funding - - 1,569,647 1,569,647
State:
Local government aid 1,059,416 1,059,416 1,066,938 7,522
Police pension aid 408,000 408,000 438,686 30,686
PERA aid 34,365 34,365 - (34,365)
Fireperson pension aid 160,000 160,000 177,079 17,079
Police training 48,000 48,000 46,105 (1,895)
Other state grants 3,000 3,000 23,714 20,714
Local:
Miscellaneous grants 101,000 101,000 48,951 (52,049)
Total intergovernmental 1,813,781 1,813,781 3,371,120 1,557,339
Charges for services:
General government charges 68,900 68,900 86,279 17,379
Public safety charges 95,250 95,250 79,128 (16,122)
Community development fees 33,000 33,000 12,219 (20,781)
Recreation fees 241,000 241,000 43,768 (197,232)
Community Center fees 352,000 352,000 72,104 (279,896)
Total charges for services 790,150 790,150 293,498 (496,652)
Fines and forfeits 246,500 246,500 155,462 (91,038)
Miscellaneous:
Investment earnings (net of market value change)125,000 125,000 266,188 141,188
Other 145,700 145,700 156,714 11,014
Total miscellaneous 270,700 270,700 422,902 152,202
Total revenues 23,793,989 23,793,989 24,098,621 304,632
114
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services 56,099$ 56,099$ 55,997$ 102$
Supplies 450 450 17 433
Services and other charges 85,660 85,660 81,741 3,919
Total mayor and council 142,209 142,209 137,755 4,454
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services 951,794 951,794 859,476 92,318
Supplies 9,250 9,250 3,606 5,644
Services and other charges 146,930 146,930 137,266 9,664
Total administrative office 1,107,974 1,107,974 1,000,348 107,626
Elections and voter registration:
Current:
Personal services 147,604 147,604 144,058 3,546
Supplies 8,000 8,000 18,996 (10,996)
Services and other charges 18,550 18,550 17,801 749
Total current 174,154 174,154 180,855 (6,701)
Capital outlay - - 752 (752)
Total elections and voter registration 174,154 174,154 181,607 (7,453)
Finance:
Current:
Personal services 593,997 593,997 533,863 60,134
Supplies 6,100 6,100 3,417 2,683
Services and other charges 56,484 56,484 53,122 3,362
Total finance 656,581 656,581 590,402 66,179
Assessing
Current:
Supplies 200 200 - 200
Services and other charges 210,000 210,000 239,969 (29,969)
Total assessing 210,200 210,200 239,969 (29,769)
Legal:
Current:
Services and other charges 435,000 435,000 416,521 18,479
Communications and engagement
Current:
Personal services 210,647 210,647 169,665 40,982
Supplies - - 3,599 (3,599)
Services and other charges 124,860 124,860 101,891 22,969
Total communications and engagement 335,507 335,507 275,155 60,352
Government buildings:
Current:
Personal services 285,835 285,835 270,725 15,110
Supplies 35,850 35,850 96,761 (60,911)
Services and other charges 618,254 618,254 784,761 (166,507)
Total government buildings 939,939 939,939 1,152,247 (212,308)
Information technology:
Current:
Personal services 345,025 345,025 341,948 3,077
Supplies 5,700 5,700 12,714 (7,014)
Services and other charges 345,531 345,531 281,346 64,185
Total information technology 696,256 696,256 636,008 60,248
Total general government 4,697,820 4,697,820 4,630,012 67,808
115
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Public safety:
Police protection:
Current:
Personal services 8,035,416$ 8,035,416$ 7,851,520$ 183,896$
Supplies 184,850 184,850 175,319 9,531
Services and other charges 1,264,018 1,264,018 1,111,545 152,473
Total police protection 9,484,284 9,484,284 9,138,384 345,900
Fire protection:
Current:
Personal services 1,040,302 1,040,302 1,075,414 (35,112)
Supplies 67,300 67,300 60,675 6,625
Services and other charges 449,192 449,192 456,254 (7,062)
Total fire protection 1,556,794 1,556,794 1,592,343 (35,549)
Protective inspection:
Current:
Personal services 239,686 239,686 272,511 (32,825)
Supplies 5,000 5,000 293 4,707
Services and other charges 42,400 42,400 77,517 (35,117)
Total protective inspection 287,086 287,086 350,321 (63,235)
Building and community standards
Current:
Personal services 1,032,347 1,032,347 932,637 99,710
Supplies 6,800 6,800 9,596 (2,796)
Services and other charges 144,669 144,669 196,612 (51,943)
Total current 1,183,816 1,183,816 1,138,845 44,971
Capital outlay 25,500 25,500 - 25,500
Total building and community standards 1,209,316 1,209,316 1,138,845 70,471
Emergency preparedness:
Current:
Supplies 4,500 4,500 43,702 (39,202)
Services and other charges 7,000 7,000 4,099 2,901
Total emergency preparedness 11,500 11,500 47,801 (36,301)
Total public safety 12,548,980 12,548,980 12,267,694 281,286
Public works:
Engineering department:
Current:
Personal services 1,003,332 1,003,332 1,052,592 (49,260)
Supplies 13,325 13,325 2,728 10,597
Services and other charges 63,843 63,843 32,364 31,479
Total engineering department 1,080,500 1,080,500 1,087,684 (7,184)
Street department:
Current:
Personal services 865,955 865,955 816,263 49,692
Supplies 153,230 153,230 105,928 47,302
Services and other charges 730,610 730,610 567,160 163,450
Total street department 1,749,795 1,749,795 1,489,351 260,444
Total public works 2,830,295 2,830,295 2,577,035 253,260
116
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Community services:
Social services:
Current:
Services and other charges 187,000$ 187,000$ 171,344$ 15,656$
Parks and recreation:
Administration:
Current:
Personal services 249,628 249,628 245,576 4,052
Services and other charges 7,475 7,475 12,369 (4,894)
Total administration 258,903 258,903 274,623 (15,720)
Recreation programs:
Current:
Personal services 618,407 618,407 394,951 223,456
Supplies 60,350 60,350 16,287 44,063
Services and other charges 277,113 277,113 109,973 167,140
Total recreation programs 955,870 955,870 521,211 434,659
Community center:
Current:
Personal services 429,871 429,871 232,672 197,199
Supplies 35,750 35,750 34,957 793
Services and other charges 206,130 206,130 127,559 78,571
Total community center 671,751 671,751 395,188 276,563
Park maintenance:
Current:
Personal services 836,007 836,007 730,091 105,916
Supplies 69,475 69,475 32,572 36,903
Services and other charges 451,293 451,293 428,014 23,279
Total park maintenance 1,356,775 1,356,775 1,190,677 166,098
Total parks and recreation 3,243,299 3,243,299 2,381,699 861,600
Economic development:
Convention bureau:
Current:
Services and other charges 562,900 562,900 266,086 296,814
Community development administration
Personal services 187,996 187,996 186,943 1,053
Supplies 9,125 9,125 21,416 (12,291)
Services and other charges 66,000 66,000 65,346 654
Total current 263,121 263,121 273,705 (10,584)
Capital outlay - - 92,948 (92,948)
Total community development administration 263,121 263,121 366,653 (103,532)
Total economic development 826,021 826,021 632,739 193,282
Nondepartmental:
Expenditures not charged to departments:
Current:
Personal services (295,000) (295,000) - (295,000)
Supplies 22,500 22,500 7,913 14,587
Services and other charges 671,228 671,228 539,487 131,741
Total nondepartmental 398,728 398,728 547,400 (148,672)
Total expenditures 24,732,143 24,732,143 23,207,923 1,524,220
117
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, 2020
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Excess (deficiency) of revenues
over (under) expenditures (938,154)$ (938,154)$ 890,698$ 1,828,852$
OTHER FINANCING SOURCES (USES)
Transfers in - administrative services reimbursed 1,148,154 1,148,154 1,201,027 52,873
Transfers out (210,000) (210,000) (410,374) (200,374)
Total other financing sources (uses)938,154 938,154 790,653 (147,501)
Net change in fund balance - - 1,681,351 1,681,351
Fund balance - January 1 12,524,217 12,524,217 12,524,217 -
Fund balance - December 31 12,524,217$ 12,524,217$ 14,205,568$ 1,681,351$
118
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, 2020
Actual
Original Final Amounts
REVENUES
Taxes:
Property taxes 405,069$ 405,069$ 405,209$
OTHER FINANCING SOURCES (USES)
Transfers out (405,069) (405,069) (404,462)
Net change in fund balance - - 747
Fund balance - January 1 2,110 2,110 2,110
Fund balance - December 31 2,110$ 2,110$ 2,857$
Budgeted Amounts
119
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, 2020
Actual
Original Final Amounts
REVENUES
Intergovernmental -$ -$ 395,702$
Investment earnings (net of market value adjustment)16,076 16,076 37,721
Miscellaneous 75,000 75,000 20,670
Total revenues 91,076 91,076 454,093
EXPENDITURES
Current:
Economic development:
Personal services 328,531 328,531 172,057
Supplies 2,500 2,500 9,111
Services and other charges 144,057 144,057 524,315
Total expenditures 475,088 475,088 705,483
Excess (deficiency) of revenues
over (under) expenditures (384,012) (384,012) (251,390)
OTHER FINANCING SOURCES
Transfers in 405,069 405,069 404,462
Net change in fund balance 21,057 21,057 153,072
Fund balance - January 1 1,597,070 1,597,070 1,597,070
Fund balance - December 31 1,618,127$ 1,618,127$ 1,750,142$
Budgeted Amounts
120
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental 150,000$ 150,000$ -$
EXPENDITURES
Current:
Economic development:
Services and other charges 150,000 150,000 -
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$
121
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Fines and forfeitures 13,000$ 13,000$ 640$
Investment earnings (net of market value adjustment)1,057 1,057 1,071
Total revenues 14,057 14,057 1,711
EXPENDITURES
Current:
Public safety:
Supplies 12,400 12,400 5,136
Services and other charges 600 600 -
Capital outlay:
Public safety - - 51,889
Total expenditures 13,000 13,000 57,025
Net change in fund balance 1,057 1,057 (55,314)
Fund balance - January 1 66,472 66,472 66,472
Fund balance - December 31 67,529$ 67,529$ 11,158$
122
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment)-$ -$ 335$
Net change in fund balance (150,000) (150,000) 335
Fund balance - January 1 40,806 40,806 40,806
Fund balance - December 31 (109,194)$ (109,194)$ 41,141$
123
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental -$ -$ 1,964$
Charges for services 239,250 239,250 292,009
Investment earnings - - 537
Miscellaneous 2,000 2,000 -
Total revenues 241,250 241,250 294,510
EXPENDITURES
Current:
Parks and Recreation:
Personal services 161,304 161,304 170,153
Supplies 28,100 28,100 23,347
Services and other charges 112,146 112,146 129,033
Total expenditures 301,550 301,550 322,533
Excess (deficiency) of revenues
over (under) expenditures (60,300) (60,300) (28,023)
OTHER FINANCING SOURCES
Transfers in 85,000 85,000 85,000
Net change in fund balance 24,700 24,700 56,977
Fund balance (deficit) - January 1 (255,891) (255,891) (255,891)
Fund balance (deficit) - December 31 (231,191)$ (231,191)$ (198,914)$
124
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment)13,626$ 13,626$ 19,125$
Miscellaneous 5,280 5,280 5,932
Total revenues 18,906 18,906 25,057
EXPENDITURES
Current:
Economic development:
Services and other charges - - 6,926
Capital outlay:
Economic development 100,000 100,000 -
Total expenditures 100,000 100,000 6,926
Excess (deficiency) of revenues over (under) expenditures (81,094) (81,094) 18,131
OTHER FINANCING SOURCES
Transfers in 93,893 93,893 -
Net change in fund balance 12,799 12,799 18,131
Fund balance - January 1 1,694,195 1,694,195 1,694,195
Fund balance - December 31 1,706,994$ 1,706,994$ 1,712,326$
125
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 4,379,239$ 4,379,239$ 5,201,153$
Charges for services 164,548 164,548 241,029
Investment earnings (net of market value adjustment)42,742 42,742 92,277
Miscellaneous 1,400,000 1,400,000 35,415
Total revenues 5,986,529 5,986,529 5,569,874
EXPENDITURES
Current:
Economic development:
Services and other charges 842,214 842,214 1,330,802
Excess of revenues over expenditures 5,144,315 5,144,315 4,239,072
OTHER FINANCING SOURCES (USES)
Transfers in 281,502 281,502 -
Transfers out (2,234,513) (2,234,513) (2,796,461)
Total other financing sources (uses)(1,953,011) (1,953,011) (2,796,461)
Net change in fund balance 3,191,304 3,191,304 1,442,611
Fund balance - January 1 21,614,535 21,614,535 21,614,535
Fund balance - December 31 24,805,839$ 24,805,839$ 23,057,146$
126
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 4
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 343,087$ 343,087$ 362,217$
Investment earnings (net of market value adjustment)570 570 4,080
Miscellaneous - - 6,157
Total revenues 343,657 343,657 372,454
EXPENDITURES
Current:
Economic development:
Services and other charges 287,502 287,502 38,504
Excess of revenues over expenditures 56,155 56,155 333,950
OTHER FINANCING SOURCES
Transfers in - - 561,948
Net change in fund balance 56,155 56,155 895,898
Fund balance (deficit) - January 1 (895,898) (895,898) (895,898)
Fund balance (deficit) - December 31 (839,743)$ (839,743)$ -$
127
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 469,467$ 469,467$ 531,096$
Investment earnings (net of market value adjustment)7,678 7,678 14,583
Total revenues 477,145 477,145 545,679
EXPENDITURES
Current:
Economic development:
Services and other charges 268,894 268,894 34,999
Excess of revenues over expenditures 208,251 208,251 510,680
OTHER FINANCING SOURCES (USES)
Transfers out (356,833) (356,833) (356,833)
Net change in fund balance (148,582) (148,582) 153,847
Fund balance - January 1 35,214 35,214 35,214
Fund balance (deficit) - December 31 (113,368)$ (113,368)$ 189,061$
128
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments 194,731$ 194,731$ 178,535$
Investment earnings (net of market value adjustment)- - 886
Total revenues 194,731 194,731 179,421
EXPENDITURES
Current:
Economic development:
Services and other charges 199,731 199,731 188,081
Net change in fund balance (5,000) (5,000) (8,660)
Fund balance - January 1 4,656 4,656 4,656
Fund balance (deficit) - December 31 (344)$ (344)$ (4,004)$
129
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments -$ -$ 123,396$
Investment earnings (net of market value adjustment)- - 2,086
Total revenues - - 125,482
EXPENDITURES
Current:
Economic development:
Services and other charges - - 30,845
Net change in fund balance - - 94,637
Fund balance - January 1 31,878 31,878 31,878
Fund balance - December 31 31,878$ 31,878$ 126,515$
130
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, 2020
Budgeted Amounts Actual
Original Final Amounts
EXPENDITURES
Current:
Economic development:
Services and other charges -$ -$ -$
Net change in fund balance - - -
Fund balance (deficit) - January 1 (12,500) (12,500) (12,500)
Fund balance (deficit) - December 31 (12,500)$ (12,500)$ (12,500)$
131
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental 193,568$ 193,568$ 151,178$
Charges for services 18,500 18,500 1,831
Investment earnings (net of market value adjustment)941 941 3,761
Miscellaneous 18,200 18,200 228
Total revenues 231,209 231,209 156,998
EXPENDITURES
Current:
Public safety:
Personal services 129,768 129,768 114,592
Supplies 13,500 13,500 721
Services and other charges 11,300 11,300 1,039
Parks and recreation:
Personal services 6,237 6,237 1,592
Supplies 9,000 9,000 3,817
Services and other charges 23,500 23,500 737
Total expenditures 193,305 193,305 122,498
Net change in fund balance 37,904 37,904 34,500
Fund balance - January 1 176,246 176,246 176,246
Fund balance - December 31 214,150$ 214,150$ 210,746$
132
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, 2020
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Property taxes 1,455,133$ 1,455,133$ 1,456,676$
Special assessments 989,949 989,949 1,143,880
Investment earnings (net of market value adjustment)27,751 27,751 74,597
Total revenues 2,472,833 2,472,833 2,675,153
EXPENDITURES
Debt service:
Principal 4,090,757 4,090,757 4,090,757
Interest 756,624 756,624 756,623
Fiscal agent fees 15,000 15,000 11,759
Total expenditures 4,862,381 4,862,381 4,859,139
Excess (deficiency) of revenues
over (under) expenditures (2,389,548) (2,389,548) (2,183,986)
OTHER FINANCING SOURCES
Transfers in 2,591,346 2,591,346 2,591,346
Net change in fund balance 201,798 201,798 407,360
Fund balance - January 1 3,991,322 3,991,322 3,991,322
Fund balance - December 31 4,193,120$ 4,193,120$ 4,398,682$
133
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, 2020
Actual
Original Final Amounts
REVENUES
Intergovernmental 1,059,416$ 1,059,416$ 2,444,615$
Investment earnings (net of market value adjustment)17,520 17,520 12,296
Total revenues 1,076,936 1,076,936 2,456,911
EXPENDITURES
Capital outlay:
Public works 1,331,800 1,331,800 3,361,877
Excess (deficiency) of revenues
over (under) expenditures (254,864) (254,864) (904,966)
OTHER FINANCING SOURCES
Transfers in 200,000 200,000 64,874
Net change in fund balance (54,864) (54,864) (840,092)
Fund balance - January 1 1,613,299 1,613,299 1,613,299
Fund balance - December 31 1,558,435$ 1,558,435$ 773,207$
Budgeted Amounts
134
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, 2020
Actual
Original Final Amounts
REVENUES
Intergovernmental 1,257,955$ 1,257,955$ 1,412,471$
Investment earnings (net of market value adjustment)51,359 51,359 72,176
Total revenues 1,309,314 1,309,314 1,484,647
EXPENDITURES
Current:
Public works:
Supplies 70,000 70,000 62,993
Services and other charges 90,000 90,000 42,841
Capital outlay:
Public works 60,000 60,000 564
Total expenditures 220,000 220,000 106,398
Net change in fund balance 1,089,314 1,089,314 1,378,249
Fund balance - January 1 1,294,135 1,294,135 1,294,135
Fund balance - December 31 2,383,449$ 2,383,449$ 2,672,384$
Budgeted Amounts
135
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, 2020
Actual
Original Final Amounts
REVENUES
Charges for services -$ -$ 1,065$
Special assessments 764,229 764,229 563,786
Investment earnings (net of market value adjustment)- - 17,527
Total revenues 764,229 764,229 582,378
EXPENDITURES
Current:
Public works
Supplies - - 189
Services and other charges 2,300 2,300 2,668
Capital outlay:
Public works 1,040,000 1,040,000 1,841,451
Total expenditures 1,042,300 1,042,300 1,844,308
Excess (deficiency) of revenues
over (under) expenditures (278,071) (278,071) (1,261,930)
Fund balance - January 1 2,742,063 2,742,063 2,742,063
Fund balance - December 31 2,463,992$ 2,463,992$ 1,480,133$
Budgeted Amounts
136
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, 2020
Actual
Original Final Amounts
REVENUES
Franchise fees 710,000$ 710,000$ 738,213$
Investment earnings (net of market value adjustment)95,058 95,058 175,021
Total revenues 805,058 805,058 913,234
EXPENDITURES
Capital outlay:
Public works 2,350,000 2,350,000 4,227,779
Debt service:
Bond issuance costs - - 34,857
Total expenditures 2,350,000 2,350,000 4,262,636
Excess (deficiency) of revenues
over (under) expenditures (1,544,942) (1,544,942) (3,349,402)
OTHER FINANCING SOURCES
Issuance of debt 2,000,000 2,000,000 1,955,000
Premium on issuance of debt - - 81,687
Total other financing sources 2,000,000 2,000,000 2,036,687
Net change in fund balance 455,058 455,058 (1,312,715)
Fund balance - January 1 6,442,489 6,442,489 6,442,489
Fund balance - December 31 6,897,547$ 6,897,547$ 5,129,774$
Budgeted Amounts
137
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, 2020
Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment)15,919$ 15,919$ 26,975$
Net change in fund balance 15,919 15,919 26,975
Fund balance - January 1 1,144,755 1,144,755 1,144,755
Fund balance - December 31 1,160,674$ 1,160,674$ 1,171,730$
Budgeted Amounts
138
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, 2020
Actual
Original Final Amounts
REVENUES
Intergovernmental -$ -$ 58,193$
Investment earnings (net of market value adjustment)5,521 5,521 6,663
Total revenues 5,521 5,521 64,856
EXPENDITURES
Current:
General government:
Supplies 127,200 127,200 86,764
Services and other charges 159,500 159,500 145,925
Capital outlay:
General government 60,000 60,000 -
Total expenditures 346,700 346,700 232,689
Excess (deficiency) of revenues
over (under) expenditures (341,179) (341,179) (167,833)
OTHER FINANCING SOURCES
Transfers in 125,000 125,000 125,000
Net change in fund balance (216,179) (216,179) (42,833)
Fund balance - January 1 388,963 388,963 388,963
Fund balance - December 31 172,784$ 172,784$ 346,130$
Budgeted Amounts
139
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
DEBT SERVICE FUND BY ACCOUNT
December 31, 2020
General General General General
Obligation Obligation Obligation Obligation
Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds
2013B 2015A 2016A 2017A
ASSETS
Cash and investments 832,171$ 614,524$ 233,674$ 805,076$
Receivables:
Current taxes 2,718 1,788 1,515 1,978
Special assessments 257,536 419,917 - 576,871
Total assets 1,092,425 1,036,229 235,189 1,383,925
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 254,882 417,547 - 575,496
FUND BALANCES
Restricted for debt service 837,543 618,682 235,189 808,429
Total deferred inflows of
resources and fund balances 1,092,425$ 1,036,229$ 235,189$ 1,383,925$
140
General General Tax
Obligation Obligation Tax Tax Increment Tax
Improvement Improvement Increment Increment Refunding Increment Total
Bonds Bonds Bonds Bonds Bonds Bonds Debt
2018A 2019A 2016C 2016B 2015B 2013A Service
930,046$ 956,884$ 1,050$ 1,050$ 1,500$ 1,001$ 4,376,976$
1,779 483 - - - - 10,261
1,058,357 1,474,620 - - - - 3,787,301
1,990,182 2,431,987 1,050 1,050 1,500 1,001 8,174,538
1,057,636 1,470,295 - - - - 3,775,856
932,546 961,692 1,050 1,050 1,500 1,001 4,398,682
1,990,182$ 2,431,987$ 1,050$ 1,050$ 1,500$ 1,001$ 8,174,538$
141
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, 2020
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 385,918$ 253,812$ 215,034$ 280,766$ 252,609$
Special assessments 171,636 166,611 - 186,253 246,340
Investment earnings (net of market value adjustment)12,797 9,607 2,956 14,055 16,314
Total revenues 570,351 430,030 217,990 481,074 515,263
EXPENDITURES
Debt service:
Principal 535,000 335,757 175,000 350,000 345,000
Interest 52,875 49,589 28,150 90,838 158,225
Fiscal agent fees 2,043 4,533 450 1,128 400
Total expenditures 589,918 389,879 203,600 441,966 503,625
Excess (deficiency) of revenues
over (under) expenditures (19,567) 40,151 14,390 39,108 11,638
OTHER FINANCING SOURCES
Transfers in - - - - -
Net change in fund balances (19,567) 40,151 14,390 39,108 11,638
Fund balances (deficits) - January 1 857,110 578,531 220,799 769,321 920,908
Fund balances - December 31 837,543$ 618,682$ 235,189$ 808,429$ 932,546$
142
General Tax
Obligation Tax Tax Increment Tax
Improvement Increment Increment Refunding Increment Total
Bonds Bonds Bonds Bonds Bonds Debt
2019A 2016C 2016B 2015B 2013A Service
68,537$ -$ -$ -$ -$ 1,456,676$
373,040 - - - - 1,143,880
18,868 - - - - 74,597
460,445 - - - - 2,675,153
- 285,000 - 1,730,000 335,000 4,090,757
141,601 22,008 46,825 25,950 140,562 756,623
2,305 450 450 - - 11,759
143,906 307,458 47,275 1,755,950 475,562 4,859,139
316,539 (307,458) (47,275) (1,755,950) (475,562) (2,183,986)
- 308,508 48,325 1,757,450 477,063 2,591,346
316,539 1,050 1,050 1,500 1,501 407,360
645,153 - - - (500) 3,991,322
961,692$ 1,050$ 1,050$ 1,500$ 1,001$ 4,398,682$
143
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 385,509$ 385,509$ 385,918$
Special assessments 175,321 175,321 171,636
Investment earnings (net of market value adjustment)6,513 6,513 12,797
Total revenues 567,343 567,343 570,351
EXPENDITURES
Debt service:
Principal 535,000 535,000 535,000
Interest 52,875 52,875 52,875
Fiscal agent fees 1,500 1,500 2,043
Total expenditures 589,375 589,375 589,918
Net change in fund balance (22,032) (22,032) (19,567)
Fund balance - January 1 857,110 857,110 857,110
Fund balance - December 31 835,078$ 835,078$ 837,543$
Budgeted Amounts
144
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 253,543$ 253,543$ 253,812$
Special assessments 123,898 123,898 166,611
Investment earnings (net of market value adjustment)4,152 4,152 9,607
Total revenues 381,593 381,593 430,030
EXPENDITURES
Debt service:
Principal 335,757 335,757 335,757
Interest 49,589 49,589 49,589
Fiscal agent fees 1,500 1,500 4,533
Total expenditures 386,846 386,846 389,879
Net change in fund balance (5,253) (5,253) 40,151
Fund balance - January 1 578,531 578,531 578,531
Fund balance - December 31 573,278$ 573,278$ 618,682$
Budgeted Amounts
145
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 214,806$ 214,806$ 215,034$
Investment earnings (net of market value adjustment)1,744 1,744 2,956
Total revenues 216,550 216,550 217,990
EXPENDITURES
Debt service:
Principal 175,000 175,000 175,000
Interest 28,150 28,150 28,150
Fiscal agent fees 1,500 1,500 450
Total expenditures 204,650 204,650 203,600
Net change in fund balance 11,900 11,900 14,390
Fund balance - January 1 220,799 220,799 220,799
Fund balance - December 31 232,699$ 232,699$ 235,189$
Budgeted Amounts
146
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 280,486$ 280,486$ 280,766$
Special assessments 126,710 126,710 186,253
Investment earnings (net of market value adjustment)7,569 7,569 14,055
Total revenues 414,765 414,765 481,074
EXPENDITURES
Debt service:
Principal 350,000 350,000 350,000
Interest 90,838 90,838 90,838
Fiscal agent fees 1,500 1,500 1,128
Total expenditures 442,338 442,338 441,966
Net change in fund balance (27,573) (27,573) 39,108
Fund balance - January 1 769,321 769,321 769,321
Fund balance - December 31 741,748$ 741,748$ 808,429$
Budgeted Amounts
147
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 252,329$ 252,329$ 252,609$
Special assessments 216,155 216,155 246,340
Investment earnings (net of market value adjustment)7,773 7,773 16,314
Total revenues 476,257 476,257 515,263
EXPENDITURES
Debt service:
Principal 345,000 345,000 345,000
Interest 158,225 158,225 158,225
Fiscal agent fees 1,500 1,500 400
Total expenditures 504,725 504,725 503,625
Net change in fund balance (28,468) (28,468) 11,638
Fund balance - January 1 920,908 920,908 920,908
Fund balance - December 31 892,440$ 892,440$ 932,546$
Budgeted Amounts
148
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, 2020
Actual
Original Final Amounts
REVENUES
Property taxes 68,460$ 68,460$ 68,537$
Special assessments 347,865 347,865 373,040
Investment earnings (net of market value adjustment)- - 18,868
Total revenues 416,325 416,325 460,445
EXPENDITURES
Debt service:
Interest 141,601 141,601 141,601
Fiscal agent fees 1,500 1,500 2,305
Total expenditures 143,101 143,101 143,906
Net change in fund balance 273,224 273,224 316,539
Fund balance - January 1 645,153 645,153 645,153
Fund balance - December 31 918,377$ 918,377$ 961,692$
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, 2020
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Principal 285,000$ 285,000$ 285,000$
Interest 22,008 22,008 22,008
Fiscal agent fees 1,500 1,500 450
Total expenditures 308,508 308,508 307,458
Excess (deficiency) of revenues
over (under) expenditures (308,508) (308,508) (307,458)
OTHER FINANCING SOURCES
Transfers in 308,508 308,508 308,508
Net change in fund balance - - 1,050
Fund balance - January 1 - - -
Fund balance - December 31 -$ -$ 1,050$
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, 2020
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Interest 46,825$ 46,825$ 46,825$
Fiscal agent fees 1,500 1,500 450
Total expenditures 48,325 48,325 47,275
Excess (deficiency) of revenues
over (under) expenditures (48,325) (48,325) (47,275)
OTHER FINANCING SOURCES
Transfers in 48,325 48,325 48,325
Net change in fund balance - - 1,050
Fund balance - January 1 - - -
Fund balance - December 31 -$ -$ 1,050$
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, 2020
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Principal 1,730,000$ 1,730,000$ 1,730,000$
Interest 25,950 25,950 25,950
Fiscal agent fees 1,500 1,500 -
Total expenditures 1,757,450 1,757,450 1,755,950
Excess (deficiency) of revenues
over (under) expenditures (1,757,450) (1,757,450) (1,755,950)
OTHER FINANCING SOURCES
Transfers in 1,757,450 1,757,450 1,757,450
Net change in fund balance - - 1,500
Fund balance - January 1 - - -
Fund balance - December 31 -$ -$ 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, 2020
Actual
Original Final Amounts
EXPENDITURES
Debt service:
Principal 335,000$ 335,000$ 335,000$
Interest 140,563 140,563 140,562
Fiscal agent fees 1,500 1,500 -
Total expenditures 477,063 477,063 475,562
Excess (deficiency) of revenues
over (under) expenditures (477,063) (477,063) (475,562)
OTHER FINANCING SOURCES
Transfers in 477,063 477,063 477,063
Net change in fund balance - - 1,501
Fund balance (deficit) - January 1 (500) (500) (500)
Fund balance (deficit) - December 31 (500)$ (500)$ 1,001$
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, 2020
Central EE Retirement EE Comp
Garage Benefit Absences
ASSETS
Current assets:
Cash and cash equivalents 4,738,970$ 57,549$ 1,661,070$
Receivables:
Accounts - net 64,918 - -
Due from other governments 7,554 - -
Inventories 20,952 - -
Total current assets 4,832,394 57,549 1,661,070
Noncurrent assets:
Capital assets:
Building and improvements 166,108 - -
Machinery and equipment 10,616,777 - -
Total capital assets 10,782,885 - -
Less: accumulated depreciation (7,142,199) - -
Net capital assets 3,640,686 - -
Total noncurrent assets 3,640,686 - -
Total assets 8,473,080 57,549 1,661,070
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources - - -
Deferred OPEB resources - 541,535 -
Total deferred outflows of resources - 541,535 -
LIABILITIES
Current liabilities:
Accounts payable 27,173 - -
Accrued salaries and wages 13,778 (1,704) -
Due to other governments 621 - -
Compensated absences payable - - 155,266
Total current liabilities 41,572 (1,704) 155,266
Noncurrent liabilities:
Compensated absences payable - - 1,397,394
Total OPEB liability - 2,451,494 -
Net pension liability - - -
Total noncurrent liabilities - 2,451,494 1,397,394
Total liabilities 41,572 2,449,790 1,552,660
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources - - -
Deferred OPEB resources - 82,111 -
Total deferred inflows of resources - 82,111 -
NET POSITION
Net investment in capital assets 3,640,686 - -
Unrestricted 4,790,822 (1,932,817) 108,410
Total net position 8,431,508$ (1,932,817)$ 108,410$
156
Total
Pension -Pension - Internal
GERF PEPFF Service
-$ -$ 6,457,589$
- - 64,918
- - 7,554
- - 20,952
- - 6,551,013
- - 166,108
- - 10,616,777
- - 10,782,885
- - (7,142,199)
- - 3,640,686
- - 3,640,686
- - 10,191,699
739,813 3,048,838 3,788,651
- - 541,535
739,813 3,048,838 4,330,186
- - 27,173
- - 12,074
- - 621
- - 155,266
- - 195,134
- - 1,397,394
- - 2,451,494
7,434,367 5,806,262 13,240,629
7,434,367 5,806,262 17,089,517
7,434,367 5,806,262 17,284,651
322,712 4,048,434 4,371,146
- - 82,111
322,712 4,048,434 4,453,257
- - 3,640,686
(7,017,266) (6,805,858) (10,856,709)
(7,017,266)$ (6,805,858)$ (7,216,023)$
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, 2020
Central EE Retirement EE Comp
Garage Benefit Absences
OPERATING REVENUES
Sales and user fees 1,734,675$ 43,949$ 243,856$
OPERATING EXPENSES
Personal services 453,607 268,929 278,431
Supplies 353,728 - -
Other services 215,456 - -
Insurance 66,115 - -
Utilities 537 - -
Depreciation 897,970 - -
Total operating expenses 1,987,413 268,929 278,431
Operating income (loss)(252,738) (224,980) (34,575)
NONOPERATING REVENUES (EXPENSE)
Intergovernmental 9,487 8,841 -
Investment earnings (net of market value adjustment)108,847 2,016 32,985
Gain on sale of capital assets 82,875 - -
Loss on sale of capital assets (9,316) - -
Other revenue 28,049 - -
Total nonoperating revenues (expense)219,942 10,857 32,985
Income (loss) before transfers (32,796) (214,123) (1,590)
Transfers in 25,500 - 110,000
Change in net position (7,296) (214,123) 108,410
Net position - January 1 8,438,804 (1,718,694) -
Net position - December 31 8,431,508$ (1,932,817)$ 108,410$
158
Total
Pension -Pension - Internal
GERF PEPFF Service
649,561$ 887,315$ 3,559,356$
441,092 713,552 2,155,611
- - 353,728
- - 215,456
- - 66,115
- - 537
- - 897,970
441,092 713,552 3,689,417
208,469 173,763 (130,061)
19,948 81,730 120,006
- - 143,848
- - 82,875
- - (9,316)
- - 28,049
19,948 81,730 365,462
228,417 255,493 235,401
- - 135,500
228,417 255,493 370,901
(7,245,683) (7,061,351) (7,586,924)
(7,017,266)$ (6,805,858)$ (7,216,023)$
159
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2020
Central EE Retirement EE Comp
Garage Benefit Absences
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided 1,716,131$ 43,949$ 243,856$
Other operating receipts 37,536 - -
Payments for interfund services received (42,314) - -
Payments to suppliers (677,965) - -
Payments to employees (449,855) (133,142) (134,317)
Net cash flows provided (used) by
operating activities 583,533 (89,193) 109,539
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental - 8,841 -
Transfers in - 110,000
Net cash flows provided by
noncapital financing activities - 8,841 110,000
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (923,898) - -
Transfers in 25,500 - -
Proceeds from sale of assets 172,432 - -
Net cash flows provided (used) by capital
and related financing activities (725,966) - -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 108,847 2,016 32,985
Net increase (decrease) in cash and cash equivalents (33,586) (78,336) 252,524
Cash and cash equivalents - January 1 4,772,556 135,885 1,408,546
Cash and cash equivalents - December 31 4,738,970$ 57,549$ 1,661,070$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (252,738)$ (224,980)$ (34,575)$
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Other income related to operations 37,536 - -
Depreciation 897,970 - -
(Increase) decrease in assets:
Accounts receivable (18,544) 499 -
Inventories 327 - -
Prepaid items 550 - -
(Increase) decrease in deferred outflows of resources:
Deferred pension resources - (264,679) -
Increase (decrease) in liabilities:
Accounts payable (85,320) - -
Net pension liability - - -
Accrued salaries and wages 3,752 410,890 144,114
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - (10,923) -
Net cash provided (used) by operating activities 583,533$ (89,193)$ 109,539$
NONCASH FINANCING ACTIVITIES
Loss on disposal of capital assets 9,316$ -$ -$
Capital asset trade-ins 54,000$ -$ -$
Grants deposited with pension plan -$ -$ -$
160
Total
Pension -Pension - Internal
GERF PEPFF Service
649,561$ 887,315$ 3,540,812$
- - 37,536
- - (42,314)
- - (677,965)
(649,561) (887,315) (2,254,190)
- - 603,879
- - 8,841
110,000
- - 118,841
- - (923,898)
- - 25,500
- - 172,432
- - (725,966)
- - 143,848
- - 140,602
- - 6,316,987
-$ -$ 6,457,589$
208,469$ 173,763$ (130,061)$
19,948 81,730 139,214
- - 897,970
- - (18,045)
- - 327
- - 550
(169,169) 1,749,806 1,315,958
- - (85,320)
860,652 1,033,655 1,894,307
- - 558,756
(919,900) (3,038,954) (3,969,777)
-$ -$ 603,879$
-$ -$ 9,316$
-$ -$ 54,000$
2,784$ 39,690$ 42,474$
161
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162
STATISTICAL SECTION
This part of the City of Brooklyn Center’s comprehensive annual 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 comprehensive annual 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)
2011 2012 2013 2014
Governmental activities
Net investment in capital assets 45,761,042$ 45,261,629$ 42,281,203$ 42,947,577$
Restricted 24,847,507 24,259,292 27,219,086 28,061,977
Unrestricted 4,376,334 5,875,289 11,205,289 12,357,196
Total governmental activities net position 74,984,883$ 75,396,210$ 80,705,578$ 83,366,750$
Business-type activities
Net investment in capital assets 45,051,128$ 42,406,210$ 42,466,488$ 48,537,132$
Unrestricted 8,300,659 11,856,924 12,208,126 6,819,765
Total business-type activities net position 53,351,787$ 54,263,134$ 54,674,614$ 55,356,897$
Primary government
Net investment in capital assets 90,812,170$ 87,667,839$ 84,747,691$ 91,484,709$
Restricted 24,847,507 24,259,292 27,219,086 28,061,977
Unrestricted 12,676,993 17,732,213 23,413,415 19,176,961
Total primary government net position 128,336,670$ 129,659,344$ 135,380,192$ 138,723,647$
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
2015 2016 2017 2018 2019 2020
47,941,800$ 48,358,875$ 53,152,985$ 52,794,327$ 52,560,591$ 54,471,240$
36,810,593 29,554,944 27,309,336 30,501,419 35,743,847 38,473,882
(5,495,836) 789,884 1,400,658 3,010,220 5,152,891 9,335,442
79,256,557$ 78,703,703$ 81,862,979$ 86,305,966$ 93,457,329$ 102,280,564$
47,201,239$ 43,483,294$ 43,553,672$ 42,831,977$ 43,450,307$ 43,786,262$
8,452,630 13,606,322 14,613,409 15,827,178 16,005,070 14,484,003
55,653,869$ 57,089,616$ 58,167,081$ 58,659,155$ 59,455,377$ 58,270,265$
95,143,039$ 91,842,169$ 96,706,657$ 95,626,304$ 96,010,898$ 98,257,502$
36,810,593 29,554,944 27,309,336 30,501,419 35,743,847 38,473,882
2,956,794 14,396,206 16,014,067 18,837,398 21,157,961 23,819,445
134,910,426$ 135,793,319$ 140,030,060$ 144,965,121$ 152,912,706$ 160,550,829$
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)
2011 2012 2013 2014
GOVERNMENTAL ACTIVITIES
Expenses
General government 3,216,321$ 3,246,015$ 3,165,400$ 3,736,487$
Public safety 9,268,897 9,604,521 9,618,906 10,186,645
Public works 2,771,602 3,561,914 4,215,855 3,688,238
Community services 100,849 141,505 149,203 145,503
Parks and recreation 2,895,769 2,796,561 2,752,539 2,977,707
Economic development 2,542,520 5,438,372 3,833,915 3,234,623
Interest on long-term debt 865,799 768,241 490,162 887,190
Total expenses 21,661,757 25,557,129 24,225,980 24,856,393
Program Revenues
Charges for services:
General government 1,078,109 1,082,741 798,088 651,188
Public safety 1,547,446 1,402,204 786,828 722,697
Public works 16,191 270,680 5,879 157,889
Parks and recreation 721,663 897,592 650,522 598,173
Economic development 88,737 19,734 90,656 477,088
Operating grants and contributions 1,637,743 3,165,588 3,089,220 1,746,637
Capital grants and contributions 5,299,705 491,404 4,427,586 1,671,830
Total program revenues 10,389,594 7,329,943 9,848,779 6,025,502
Net (expense) / revenue (11,272,163) (18,227,186) (14,377,201) (18,830,891)
General Revenues and Transfers
Taxes:
Property 13,336,056 14,307,993 14,943,008 14,988,007
Tax increments 2,525,057 2,751,249 3,098,620 3,790,363
Lodging taxes 852,302 882,620 881,252 914,651
Unrestricted grants and contributions 549,649 496,679 590,916 1,499,015
Investment earnings (net)191,510 85,560 (81,438) 236,936
Gain on disposal of capital asset 111,530 113,976 54,211 27,100
Transfers (749,308) 436 200,000 675,257
Transfers - capital assets - - - (639,266)
Total general revenues and transfers 16,816,796 18,638,513 19,686,569 21,492,063
Change in Net Position 5,544,633$ 411,327$ 5,309,368$ 2,661,172$
166
Table 2
Page 1 of 3
2015 2016 2017 2018 2019 2020
3,527,323$ 3,891,671$ 4,007,850$ 4,426,549$ 4,423,425$ 4,834,450$
10,707,602 13,222,625 12,438,818 11,757,362 12,706,644 13,057,043
3,867,406 4,099,559 4,542,244 6,501,746 12,787,805 6,450,769
135,604 136,349 143,103 164,544 181,159 171,344
3,053,328 3,183,198 2,995,396 3,234,386 3,827,299 3,218,266
5,419,304 6,825,271 1,917,039 2,543,381 2,146,011 2,872,886
723,000 654,205 540,799 693,575 666,343 634,139
27,433,567 32,012,878 26,585,249 29,321,543 36,738,686 31,238,897
653,535 563,744 530,459 483,572 476,377 412,993
548,669 656,642 683,172 1,047,683 1,030,980 808,885
226,645 79,987 46,359 464,254 259,675 13,451
564,217 635,597 608,590 593,692 754,408 408,515
225,057 417,332 296,103 212,847 260,155 303,046
2,605,477 2,323,913 1,716,671 3,872,109 9,562,139 2,607,134
5,184,381 4,061,903 1,407,482 3,435,074 3,148,710 3,148,955
10,007,981 8,739,118 5,288,836 10,109,231 15,492,444 7,702,979
(17,425,586) (23,273,760) (21,296,413) (19,212,312) (21,246,242) (23,535,918)
15,320,998 15,757,198 16,736,759 17,650,461 19,073,449 20,136,395
3,805,367 3,667,590 4,652,373 5,147,964 5,354,749 6,566,099
1,075,425 1,159,519 1,206,565 1,167,961 1,091,105 561,602
1,670,928 1,939,431 1,701,232 2,065,832 2,239,180 4,432,381
254,366 230,705 265,604 442,835 1,271,500 971,753
27,800 57,765 88,326 80,786 58,869 82,875
236,312 93,935 67,898 (782,750) 325,487 -
(1,034,574) (185,237) (263,068) 478,610 (1,016,734) (391,952)
21,356,622 22,720,906 24,455,689 26,251,699 28,397,605 32,359,153
3,931,036$ (552,854)$ 3,159,276$ 7,039,387$ 7,151,363$ 8,823,235$
167
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2011 2012 2013 2014
BUSINESS-TYPE ACTIVITIES
Expenses
Municipal liquor 1,218,399$ 1,274,375$ 5,674,937$ 5,690,792$
Golf course 284,673 273,023 263,425 271,698
Earle Brown Heritage Center 2,602,074 2,768,719 4,835,131 5,137,712
Water utility 1,825,558 1,855,345 2,025,496 1,900,518
Sanitary sewer utility 3,277,874 3,317,427 3,382,810 3,514,687
Storm drainage utility 1,407,712 1,501,652 1,552,327 1,784,907
Recycling utility 284,440 285,853 289,043 291,239
Street light utility 232,716 222,835 257,079 245,426
Total expenses 11,133,446 11,499,229 18,280,248 18,836,979
Program Revenues
Charges for services:
Municipal liquor 1,620,315 1,656,125 6,072,334 5,861,066
Earle Brown Heritage Center 2,026,063 2,293,386 4,294,723 4,578,433
Water utility 1,990,664 2,321,539 2,318,176 2,235,332
Sanitary sewer utility 3,474,588 3,592,530 3,675,936 3,942,534
Storm drainage utility 1,621,104 1,660,849 1,622,012 1,638,575
Other activities 778,584 853,585 882,995 1,127,116
Operating grants and contributions - - 52,775 63,547
Capital grants and contributions 80,186 - - -
Total program revenues 11,591,504 12,378,014 18,918,951 19,446,603
Net (expense) / revenue 458,058 878,785 638,703 609,624
General Revenues and Transfers
Unrestricted grants and contributions - - - -
Investment earnings (net)79,016 32,998 (27,223) 108,650
Transfers 749,308 (436) (200,000) (675,257)
Transfers - capital assets - - - 639,266
Total general revenues and transfers 828,324 32,562 (227,223) 72,659
Change in Net Position 1,286,382$ 911,347$ 411,480$ 682,283$
168
Table 2
Page 2 of 3
2015 2016 2017 2018 2019 2020
5,816,363$ 6,123,608$ 6,241,998$ 6,478,599$ 6,775,430$ 5,699,529$
270,307 309,910 335,029 333,768 - -
4,739,543 4,507,406 4,825,489 4,874,026 5,242,416 3,034,695
2,179,892 2,903,198 3,294,345 3,670,089 4,148,609 4,377,809
3,694,880 3,864,514 4,068,468 4,213,511 4,546,350 4,551,331
1,883,154 1,700,515 1,848,887 1,959,195 2,407,046 2,441,109
292,282 291,980 366,608 385,811 410,610 396,402
281,661 272,072 267,069 274,252 333,744 306,619
19,158,082 19,973,203 21,247,893 22,189,251 23,864,205 20,807,494
6,061,680 6,206,584 6,503,094 6,745,617 6,860,482 5,503,163
4,649,162 4,731,876 4,917,167 4,858,384 5,068,900 1,309,634
2,640,665 3,216,506 3,585,597 3,888,716 3,819,747 4,261,455
4,095,017 4,210,081 4,288,655 4,406,741 4,555,940 4,662,764
1,635,655 1,620,452 1,598,624 1,681,733 1,680,454 1,691,946
988,038 1,088,695 1,071,232 1,119,322 871,838 871,261
30,522 16,481 - - - -
- 106,488 - - 455,363 -
20,100,739 21,197,163 21,964,369 22,700,513 23,312,724 18,300,223
942,657 1,223,960 716,476 511,262 (551,481) (2,507,271)
- - - - - 449,232
127,686 120,485 165,819 258,591 656,456 480,975
(236,312) (93,935) (67,898) 782,750 (325,487) -
1,034,574 185,237 263,068 (478,610) 1,016,734 391,952
925,948 211,787 360,989 562,731 1,347,703 1,322,159
1,868,605$ 1,435,747$ 1,077,465$ 1,073,993$ 796,222$ (1,185,112)$
169
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2011 2012 2013 2014
TOTAL PRIMARY GOVERNMENT
Expenses
Governmental activities 21,661,757$ 25,557,129$ 24,225,980$ 24,856,393$
Business-type activities 11,133,446 11,499,229 18,280,248 18,836,979
Total expenses 32,795,203 37,056,358 42,506,228 43,693,372
Program Revenues
Governmental activities 10,389,594 7,329,943 9,848,779 6,025,502
Business-type activities 11,591,504 12,378,014 18,918,951 19,446,603
Total program revenues 21,981,098 19,707,957 28,767,730 25,472,105
Net (expense) / revenue (10,814,105) (17,348,401) (13,738,498) (18,221,267)
General Revenues and Transfers
Governmental activities 16,816,796 18,638,513 19,686,569 21,492,063
Business-type activities 828,324 32,562 (227,223) 72,659
Total general revenues and transfers 17,645,120 18,671,075 19,459,346 21,564,722
Change in Net Position 6,831,015$ 1,322,674$ 5,720,848$ 3,343,455$
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
2015 2016 2017 2018 2019 2020
27,433,567$ 32,012,878$ 26,585,249$ 29,321,543$ 36,738,686$ 31,238,897$
19,158,082 19,973,203 21,247,893 22,189,251 23,864,205 20,807,494
46,591,649 51,986,081 47,833,142 51,510,794 60,602,891 52,046,391
10,007,981 8,739,118 5,288,836 10,109,231 15,492,444 7,702,979
20,100,739 21,197,163 21,964,369 22,700,513 23,312,724 18,300,223
30,108,720 29,936,281 27,253,205 32,809,744 38,805,168 26,003,202
(16,482,929) (22,049,800) (20,579,937) (18,701,050) (21,797,723) (26,043,189)
21,356,622 22,720,906 24,455,689 26,251,699 28,397,605 32,359,153
925,948 211,787 360,989 562,731 1,347,703 1,322,159
22,282,570 22,932,693 24,816,678 26,814,430 29,745,308 33,681,312
5,799,641$ 882,893$ 4,236,741$ 8,113,380$ 7,947,585$ 7,638,123$
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
2011 13,336,056$ 2,525,057$ 852,302$ 16,713,415$
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
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)
2011 2012 2013 2014
General Fund
Nonspendable 32,308$ 88,952$ 26,139$ 21,967$
Assigned 2,614 - 2,754,124 908,761
Unassigned 9,695,913 10,597,944 9,602,450 10,089,353
Total general fund 9,730,835$ 10,686,896$ 12,382,713$ 11,020,081$
All other governmental funds
Nonspendable -$ -$ -$ -$
Restricted 13,331,705 12,912,357 26,350,322 26,434,113
Committed 3,021,318 3,651,995 7,579,688 10,514,871
Assigned - - - -
Unassigned (2,515,053) (3,425,001) (1,432,495) (1,763,877)
Total all other governmental funds 13,837,970$ 13,139,351$ 32,497,515$ 35,185,107$
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
2015 2016 2017 2018 2019 2020
78,859$ 92,388$ 105,634$ 82,309$ 86,479$ 84,002$
804,815 715,544 149,630 6,500 64,874 1,769,004
10,287,243 10,632,965 11,099,939 11,475,016 12,372,864 12,352,562
11,170,917$ 11,440,897$ 11,355,203$ 11,563,825$ 12,524,217$ 14,205,568$
1,500$ 1,500$ 7,976$ 8,163$ 1,630$ 1,701$
30,365,411 23,355,609 23,888,356 26,097,132 32,219,640 34,032,886
9,306,224 10,852,995 9,678,002 9,007,923 9,570,360 7,631,587
- - 567,537 1,534,666 1,127,793 1,480,133
(2,425,064) (1,783,271) (1,671,355) (1,372,348) (1,131,128) (216,217)
37,248,071$ 32,426,833$ 32,470,516$ 35,275,536$ 41,788,295$ 42,930,090$
175
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
2011 2012 2013 2014
Revenues
Property taxes 13,396,611$ 14,389,842$ 15,094,464$ 15,036,602$
Tax increments 2,527,316 2,685,822 3,149,533 3,795,708
Franchise fees 659,066 647,346 651,832 647,071
Lodging taxes 852,302 882,620 881,252 914,651
Special assessments 1,975,470 1,294,521 1,877,116 1,794,126
Licenses and permits 961,947 858,593 1,084,003 1,021,410
Intergovernmental 4,929,902 3,607,218 3,159,571 2,706,299
Charges for services 1,122,350 1,056,241 1,073,917 1,229,513
Fines and forfeits 340,356 336,740 315,982 364,927
Investment earnings (net)143,661 48,322 (71,059) 188,913
Miscellaneous 296,427 742,269 423,822 344,690
Total revenues 27,205,408 26,549,534 27,640,433 28,043,910
Expenditures
General government 2,930,516 2,978,738 3,045,365 3,173,282
Public safety 8,674,195 9,090,324 9,117,541 9,622,239
Public works 2,030,930 1,982,540 1,982,311 2,107,959
Community services 100,849 141,505 149,203 145,503
Parks and recreation 2,412,952 2,532,827 2,481,763 2,457,622
Economic development 2,337,253 5,215,619 3,076,454 2,855,983
Nondepartmental 316,376 287,692 400,835 364,501
Capital outlay 5,558,718 699,563 4,319,756 3,950,187
Debt service
Principal 2,965,613 2,666,790 2,655,000 1,905,000
Interest 895,053 797,785 698,702 802,892
Other charges 14,581 7,677 179,044 9,039
Total expenditures 28,237,036 26,401,060 28,105,974 27,394,207
Excess (deficiency) of revenues
over (under) expenditures (1,031,628) 148,474 (465,541) 649,703
Other financing sources (uses)
Transfers in 3,083,093 2,320,883 4,860,459 10,463,495
Issuance of debt - - 10,960,000 -
Premium on issuance of debt - - 367,405 -
Sale of capital assets - 108,532 - -
Refunded bonds redeemed - - - -
Transfers out (3,409,350) (2,320,447) (4,660,459) (9,788,238)
Total other financing sources (uses)(326,257) 108,968 11,527,405 675,257
Restatements for: prior period adjustments
or change in accounting principle - - 9,992,117 -
Capital outlay 5,558,718 699,563 4,319,756 3,950,187
Debt service
Principal 2,965,613 2,666,790 2,655,000 1,905,000
Interest 895,053 797,785 698,702 802,892
Other charges 14,581 7,677 179,044 9,039
Total expenditures 28,237,036 26,401,060 28,105,974 27,394,207
Excess (deficiency) of revenues
over (under) expenditures (1,031,628) 148,474 (465,541) 649,703
176
Table 5
2015 2016 2017 2018 2019 2020
15,115,171$ 15,906,488$ 16,728,993$ 17,677,601$ 19,026,811$ 20,100,796$
3,669,198 3,667,013 4,824,659 5,116,958 5,384,934 6,396,397
653,648 664,501 702,600 705,608 711,255 738,213
1,075,425 1,159,519 1,206,565 1,167,961 1,091,105 561,602
1,715,159 1,788,247 1,766,736 1,790,485 2,052,187 1,770,820
859,534 932,051 904,785 1,209,029 1,172,439 991,972
4,748,476 3,745,850 3,882,902 6,349,918 12,241,725 7,835,243
967,707 882,473 933,608 1,060,712 1,233,678 829,432
291,682 240,197 295,184 300,324 275,183 156,102
203,172 175,675 208,441 356,841 1,074,114 827,905
429,575 884,187 419,034 698,993 734,347 225,116
29,728,747 30,046,201 31,873,507 36,434,430 44,997,778 40,433,598
2,938,436 3,011,710 3,231,248 3,693,876 3,732,084 4,203,795
10,004,475 10,309,827 10,964,032 11,406,837 12,004,521 12,389,182
2,031,813 2,109,867 2,168,156 2,343,902 2,491,449 2,142,853
135,604 136,349 143,103 164,544 181,159 171,344
2,790,624 2,678,944 2,738,418 2,793,889 3,182,921 2,697,088
5,269,625 5,307,692 1,764,198 2,098,968 1,960,093 2,968,379
450,129 527,819 505,586 462,056 520,518 547,400
10,475,770 5,987,524 10,210,993 9,811,817 13,352,312 9,497,602
3,025,000 2,720,000 3,502,497 3,275,978 3,677,497 4,090,757
826,053 829,812 625,032 674,020 736,838 756,623
127,218 127,194 51,655 79,167 42,326 46,616
38,074,747 33,746,738 35,904,918 36,805,054 41,881,718 39,511,639
(8,346,000) (3,700,537) (4,031,411) (370,624) 3,116,060 921,959
4,541,584 4,318,650 3,978,278 3,826,488 4,051,616 3,832,630
10,016,248 5,620,000 3,735,000 3,835,000 3,355,000 1,955,000
309,809 112,879 186,502 332,016 667,404 81,687
4,820 - - - 9,200 -
- (6,670,000) - - - -
(4,312,661) (4,232,250) (3,910,380) (4,609,238) (3,726,129) (3,968,130)
10,559,800 (850,721) 3,989,400 3,384,266 4,357,091 1,901,187
- - - - - -
2,213,800$ (4,551,258)$ (42,011)$ 3,013,642$ 7,473,151$ 2,823,146$
13.95%12.79%15.98%13.44%12.09%15.37%
177
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
2011 2012 2013 2014
Estimated actual value:
Real estate 1,682,317,900$ 1,633,327,900$ 1,506,661,400$ 1,497,679,200$
Personal property 15,487,000 16,139,200 18,257,700 18,319,800
Total estimated actual value 1,697,804,900$ 1,649,467,100$ 1,524,919,100$ 1,515,999,000$
Tax Capacity
Real estate 20,759,133$ 18,351,627$ 17,129,016$ 17,358,722$
Personal property 304,150 316,491 358,867 360,506
Contribution to fiscal disparities (2,774,593) (2,619,012) (2,335,813) (2,495,133)
Receipt from fiscal disparities 7,123,008 7,194,133 6,844,540 7,117,154
Tax increments (2,093,764) (1,922,253) (2,169,035) (2,675,416)
Net tax capacity for direct rate 23,317,934$ 21,320,986$ 19,827,575$ 19,665,833$
Net Tax Capacity as a Percentage
of Estimated Actual Market Value 1.37%1.29%1.30%1.30%
Property Tax Levies
General revenues 12,905,340$ 13,207,954$ 13,632,326$ 13,673,970$
Debt service 695,632 708,581 711,725 687,000
Housing and Redevelopment Auth.310,831 302,288 246,160 282,110
Total property taxes levied 13,911,803$ 14,218,823$ 14,590,211$ 14,643,080$
Tax Rates
General revenues 54.234 61.036 67.485 70.587
Debt service 2.983 3.323 3.590 3.547
Housing and Redevelopment Auth.1.341 1.457 1.128 1.609
Total Direct Tax Rate 58.558 65.816 72.202 75.742
Sources: The data for this table has been provided by Hennepin County.
178
Table 6
2015 2016 2017 2018 2019 2020
1,648,833,600$ 1,758,565,800$ 1,848,110,900$ 2,032,296,900$ 2,213,280,300$ 2,423,198,500$
18,829,900 20,237,100 22,039,201 22,289,300 20,965,000 24,978,300
1,667,663,500$ 1,778,802,900$ 1,870,150,101$ 2,054,586,200$ 2,234,245,300$ 2,448,176,800$
18,953,288$ 20,185,645$ 21,298,314$ 23,515,623$ 25,525,066$ 28,320,711$
370,476 398,267 435,044 440,046 412,752 489,976
(2,690,138) (2,635,082) (2,833,028) (2,766,592) (3,196,246) (3,186,988)
6,833,738 6,505,797 7,233,190 7,524,375 7,670,475 8,412,528
(2,764,303) (2,884,208) (3,292,251) (3,592,531) (3,873,826) (4,795,248)
20,703,061$ 21,570,419$ 22,841,269$ 25,120,921$ 26,538,221$ 29,240,979$
1.24%1.21%1.22%1.22%1.19%1.19%
14,381,534$ 14,728,750$ 15,344,946$ 15,963,823$ 17,034,997$ 18,402,263$
396,496 639,485 849,968 1,142,127 1,392,119 1,540,648
280,460 308,518 329,079 345,978 380,098 452,913
15,058,490$ 15,676,753$ 16,523,993$ 17,451,928$ 18,807,214$ 20,395,824$
68.266 68.788 66.798 62.589 65.116 60.361
1.760 2.987 3.700 4.478 5.284 4.872
1.230 1.517 1.406 1.365 1.460 1.356
71.256 73.292 71.904 68.432 71.860 66.589
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)
2011 55.575 2.983 58.558 45.840 23.999 24.217 34.387 47.697 2.949 6.223
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
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)
0.568 0.568 137.569 138.137 138.137 138.355 148.525 161.267 161.835 161.835
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
181
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS Table 8
Current Year and Nine Years Ago
2020 2011
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 676,210$ 1 2.31%482,900$ 1 2.07%
The Molasky Group Governmental 484,650 2 1.66%
Marvin F Poer and Company Commercial 388,250 3 1.33%
Lake Point, LLC Apartment 306,138 4 1.05%
TLN Lanel Ltd Apartment 300,318 5 1.03%
Medtronic, Inc.Industrial 280,430 6 0.96%184,650 9 0.79%
Brooklyn Hotel Partners Commercial 277,830 7 0.95%
Brookdale Corner, LLC Commercial 276,050 8 0.94%188,250 8 0.81%
G B Homes LLC Commercial 271,438 9 0.93%
Melrose Gates LLC Apartments 233,400 10 0.80%
Twin Lakes LLC Apartment 409,452 2 1.76%
Lang-Nelson Commercial 283,913 3 1.22%
Regal Cinemas, Inc.Commercial 235,758 4 1.01%
CSM Freeway Airport, LLC Commercial 233,062 5 1.00%
BCC Associates Commercial 219,250 6 0.94%
Capmark Commercial 192,145 7 0.82%
Target Commercial 160,250 10 0.69%
Totals 3,494,714$ 11.96%2,589,630$ 11.11%
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
2011 13,911,803$ 12,947,358$ 93.1%964,445$ 13,911,803$ 100.0%
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%80,777 15,644,484 99.8%
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%18,679 18,692,074 99.4%
2020 20,395,824 20,338,489 99.7%- 20,338,489 99.7%
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
2011 1,385,000$ 13,720,000$ 3,260,000$ (80,604)$ -$ -$ 2,210,000$ -$ (21,933)$ 20,472,463$ 1.18%678$
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%1,977
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
2011 18,365,000$ (80,604)$ 1,203,611$ 17,080,785$ 1.01%566$
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%643
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, 2020
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable Debt
Overlapping debt:
School Districts:
No. 11 Anoka 258,745,000$ 5.43%14,049,854$
No. 279 Osseo 143,861,460 3.47%4,991,993
No. 281 Robbinsdale 172,139,921 4.48%7,711,868
No. 286 Brooklyn Center 48,065,048 100.00%48,065,048
Metropolitan Council 103,225,628 0.54%557,418
Hennepin County 998,790,298 1.06%10,587,177
Hennepin Regional RR Authority 93,859,422 1.06%994,910
Three Rivers Park District 42,954,642 1.52%652,911
Total overlapping debt 1,861,641,419$ 87,611,179
City of Brooklyn Center direct debt 25,444,763
Total direct and overlapping debt 113,055,942$
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
2011 2012 2013 2014
Taxable Market Value 1,692,594,600$ 1,468,159,885$ 1,338,405,415$ 1,329,268,428$
Debt Limit Percentage 3.00%3.00%3.00%3.00%
Debt Limit 50,777,838 44,044,797 40,152,162 39,878,053
Total net debt applicable to limit 181,389 - - -
Legal debt margin 50,596,449$ 44,044,797$ 40,152,162$ 39,878,053$
Total net debt applicable to the limit
as a percentage of debt limit 0.36%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
2015 2016 2017 2018 2019 2020
1,489,548,076$ 1,585,423,689$ 1,677,496,115$ 1,870,350,254$ 2,060,074,358$ 2,280,312,601$
3.00%3.00%3.00%3.00%3.00%3.00%
44,686,442 47,562,711 50,324,883 56,110,508 61,802,231 68,409,378
- - - - - -
44,686,442$ 47,562,711$ 50,324,883$ 56,110,508$ 61,802,231$ 68,409,378$
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
2011 747,145$ 685,214$ 1,432,359$ 745,000$ 136,890$ 162.42%
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%
Tax Increment Bonds
Tax Increment Debt Service
Collections Principal Interest Coverage
2011 1,321,205$ 1,290,000$ 702,530$ 66.31%
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%
Utility Revenue Bonds
Water, Sewer,
and Storm Less:Net
Utility Operating Available Debt Service
Charges Expenses Revenue Principal Interest Coverage
2011 5,421,679$ 5,011,775$ 409,904$ 140,000$ 83,438$ 183.45%
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%
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%
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
2011 30,204 10,791 1,734,223,068 57,417 8.2%32.8 38,686 20,686 12,062 2,109
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 32,722 11,318 2,504,934,544 76,552 8.7%31.9 37,719 20,672 11,692 2,333
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
2020 2011
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Hennepin County 9,300 *1 56.96%
Promeon Inc., A Division of Medtronic 1,100 2 6.74%1,100 1 7.30%
Luther Auto Group 555 3 3.40%
Independent School District #286 396 4 2.43%385 2 2.55%
City of Brooklyn Center 342 5 2.09%160 5 1.06%
Wal-Mart 278 6 1.70%
University of Minnesota Physicians 212 7 1.30%
Caribou Coffee Headquarters 200 8 1.22%250 3 1.66%
Presbyterian Homes, Marantha Care Center 200 8 1.22%
TCR Corporation 150 10 0.92%145 7 0.96%
Independent School District #279 185 4 1.23%
TCF Call Center 150 6 1.00%
Target 140 8 0.93%
Cub Foods 130 9 0.86%
Kohls 100 10 0.66%
Totals 12,733 77.98%2,745 17.55%
* Not all employees located in Brooklyn Center
Sources: The data for this table has been extracted from Official Statements for bonds issued in 2011 and 2020.
192
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Table 17
Last ten fiscal years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 3.0 3.5 3.5 - - - - - -
Human Resources 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 4.0
Communications and Engagement - - - - - - 1.0 1.0 1.0 2.0
Information technology 2.0 2.0 2.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0
Building Maintenance 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Total general government 22.0 21.0 21.5 21.5 18.0 18.0 20.0 20.5 20.0 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 42.0 41.0 41.0 40.0 42.0 42.0 42.0 42.0
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 1.0 2.0 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 63.0 62.0 63.0 63.0 65.0 65.0 65.0 65.0
Community Development
Community Development Admin - - - - - - - 2.3 2.3 2.3
Business Development - - - - - - - 1.2 1.2 2.2
Planning & Zoning 1.5 1.5 1.5 1.5 1.5 1.2 1.2 - - -
Inspections 4.0 4.0 4.0 5.0 5.0 5.2 4.2 - - -
Code Enforcement 5.0 4.0 5.0 5.0 4.0 3.4 4.4 - - -
Building and Community Standards - - - - - - - 8.5 8.5 8.5
Total Community Development 10.5 9.5 10.5 11.5 10.5 9.8 9.8 12.0 12.0 13.0
Public works
Engineering & Admin 6.0 6.0 7.0 7.0 7.0 7.0 7.0 7.0 8.0 8.0
Street Maintenance 8.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 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 16.0 15.0 16.0 16.0 16.0 16.0 16.0 16.0 17.0 16.0
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 4.0 5.0 5.0 5.0
Community Center 3.0 - - - - - - - - -
Parks Maintenance 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 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 16.0 13.0 13.0 13.0 13.0 13.0 13.0 14.0 15.0 16.0
Economic Development 2.5 2.5 2.5 2.5 2.5 2.2 2.2 2.0 2.0 2.0
Municipal Liquor 4.0 4.0 5.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0
Earle Brown Heritage Center 11.0 11.0 11.0 12.0 12.0 13.0 13.0 13.0 14.0 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 1.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 3.4 3.4
Central Garage 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Total 160.0 155.0 158.5 159.5 156.0 157.0 161.0 164.5 167.0 172.0
Sources: The data for this table has been extracted from the respective years budget document.
193
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194
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195
Council Worksession
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection via
telephone Dial: 1-312-626-
6799 Meeting I D:
2365542887# P asscode:
04152021#
J une 7, 2021
AGE NDA
The City C ounc il requests that attendees turn off cell phones and pagers during the meeting. A copy
of the full City Council packet is available to the public at http://cityofbrooklyncenter.org/.
1.Call to Order - 5:30 p.m.
2.Roll Call
3.Opportunity Site Infrastructure F ramework Discussion
a.Opportunity S ite I nfrastructure Framework Discussion
4.City M anager P osition Discussion
5.Adjourn
C ouncil Worksession
DAT E:6/7/2021
TO :C ity C ouncil
F R O M:D r. Reggie Edwards, A c#ng City Manager
T H R O U G H :N/A
BY:M eg Beekman, C ommunity D evelopment D irector
S U B J E C T:O pportunity S ite I nfrastructure F ramew ork D iscussion
B ackground:
I n A pril 2019, the City renewed a P reliminary D evelopment A greement w ith A latus for 35 acres of the 80-
acre O pportunity S ite. The agreement outlined roles and responsibili#es for each party, which included the
City taking the lead on mas ter planning for the s ite, in partners hip w ith A latus, and incorpora#ng the larger
80-acre O pportunity S ite into the master plan. A latus for their part in the agreement was tasked w ith
implemen#ng an ini#al phas e of development and con#nuing their work to bring a development forw ard.
Throughout 2019, the City, along w ith its cons ultant team, worked to develop the O pportunity S ite Mas ter
P lan. This was a mul#-phas ed approach that involved a combina#on of technical asses s ment, ini#al
community engagement, feasibility analysis, and further community engagement to con#nue to re?ne the
plan.
The scale and reach of community engagement on this project has exceeded that of any past effort in the
City ’s history; how ever, the intent with this project is to ensure that the outcomes truly benefit the res idents
of Brooklyn Center, and this neces s itates a much deeper, more inclus ive engagement strategy.
F rom the beginning, the engagement approach w as intended to support this vision through an in-depth,
inclus ive proces s that connected with divers e groups and view s throughout the city.
P rinciples guiding this approach included:
• C ons is tency w ith city goals and policies, including the new city comprehens ive plan.
• Ensuring the development provided direct acces s and benefits for city residents .
• A uthen#c engagement to connect people with the decision-making process.
• M eaningful opportuni#es to influence outcomes for the plan and the site.
• Trans parency in decision making, to build trust and accountability.
W hile thes e principles have remained, the approach to engagement has evolved and changed s ince then, in
res pons e to feedback on effec#venes s , and changes in external condi#ons .
The C ity is working w ith N EO O Partners on a public engagement s trategy that includes contrac#ng with
community partners to lead deeper and more meaningful engagement w ith community, and the crea#on of
a ci#z en advisory tas kforce to dis#ll the engagement res ults and create a community benefits plan for the
development. S taff w ill pres ent the community partner propos als and pres ent a revised #meline for the
engagement work at the J une 14 C ity C ouncil mee#ng.
M aster P lan
A mas ter plan is a big picture, values-driven plan that informs future development of an area. M aster plans
do not provide details on specific development projects . Typically master plans cons is t of tw o primary
components ; 1) a s et of phys ical infrastructure framew orks that comprise the phys ical layout of the area
w ith roads , parks , trails, s tormw ater, land use and u#li#es , and 2) an implementa#on component that
iden#fies how the physical elements w ill be delivered and what they are intended to achieve. This
component may include development goals, community benefits, financial feas ibility, zoning regula#ons,
detailed infrastructure design, and s hort and longer-term ac#on steps .
A draG mas ter plan largely compris ed of the physical infras tructure frameworks was completed in J anuary
2020. This was based on early engagement efforts , the City ’s comprehensive plan, the geographic context
of the site, and the phys ical reali#es of the redevelopment areas . The inten#on at that point w as to move
into an engagement phase to develop the implementa#on component of the plan. This process was s low ed
due to the pandemic and then further delayed by civil unres t, but is being re-engaged under an engagement
s trategy developed by N EO O Partners , and in collabora#on w ith community partners.
I n the interim, a traffic s tudy was conducted, based on the draG master plan, and a regional stormwater
plan was developed for the s ite. O ne of the next steps to complete the implementa#on component of the
mas ter plan is to develop more refined designs for the roads , streets capes and u#li#es . Refined des igns are
needed to complete cos t es#mates and s tormw ater planning, and to develop an implementa#on plan for
the public improvements.
I n addi#on, Three Rivers Park D istrict has commiIed to providing a 4-acre “mini-regional park”, w ithin the
development area. They have amended their parks and trails master plan to include the project and have
included it in their 2024 C I P. They w ill begin an engagement and planning process for the park later in 2021.
M N D O T holds approximately 5 acres of right of way adjacent to H ighway 100 and in the middle of a highly
visible area w ithin the redevelopment plan. This R O W is for John M ar#n D rive and connects to the John
Mar#n D rive acces s and bridge over H ighway 100, w hich is also owned by M N D OT. The draG master plan
calls for the closure of this access and bridge, and for M N D O T to vacate that R O W, allow ing it to be
incorporated into a future development area. At pres ent, M N D O T has expres s ed hes ita#on to move ahead
w ith any review of that R O W, due to a future 2026 H ighway 100 improvement that may need stormwater
capacity. S taff has been w orking with M N D OT to ens ure they unders tand that the highest and best use of
that land is not a stormwater pond, nor is w ai#ng to determine M N D O T's poten#al future need for the land
acceptable. Thes e convers a#ons are ongoing.
The E DA controls approximately 44 of the 80-acre O pportunity S ite area. The balance of land is privately
ow ned by various par#es. Nearly all of thos e proper#es are for s ale, or have willing s ellers. S taff has
received numerous inquiries from par#es interested in acquiring thes e parcels . I nterest includes
redevelopment concepts , as w ell as reus e concepts . G enerally, propos ed concepts are for us es that do not
align w ith the draG master plan. This is not surprising s ince the draG mas ter plan calls for a s ignificant re-
visioning of the area, to intensify the land us e, bring new infrastructure and ameni#es to the site, and
deliver outcomes that the market w ould not be able to deliver on its own without city s upport.
The concern is that absent a vis ion for the s ite, the C ity has limited ability to ensure that any reus e or
redevelopment of private property within the O pportunity S ite aligns with what the C ity wants to achieve
on the site. W ithout an adopted framew ork for future redevelopment, it is more difficult for s taff to convey
the C ity ’s vision and provide direc#on to property ow ners and pros pec#ve buyers.
The 2040 C omprehens ive P lan iden#fies future land us es of Trans it O riented D evelopment and Commercial
Mixed Use; however, the zoning for the s ite allow s auto-oriented retail and commercial uses , which are not
in alignment w ith the vis ion. A moratorium on new development w as put into place in A ugus t 2019, and
expired in A ugus t 2020. The City does not have the ability to put into place another moratorium.
I nfrastructure F ramework
I n order to complete the O pportunity S ite M aster P lan, and specifically the implementa#on component,
S taff is s eeking direc#on from the City Council on the physical infras tructure components of the draG
mas ter plan. These cons is t of four elements:
Land us e
Parks and O pen S pace
S tormw ater
A ccess and Connec#vity
The purpos e of the w ork s ession discussion this evening is to provide an overview of these four elements,
and get direc#on from Council. Each component is described in more detail in the sec#ons below.
Bas ed on the dis cus s ion, S taff is propos ing that the C ity C ouncil take ac#on to approve the infrastructure
framew ork at a future mee#ng. The approval of an infras tructure framework is needed in order to provide
guidance on the draG mas ter plan, and to facilitate the comple#on of the implementa#on component. I n
addi#on, guidance from Council is needed to progres s and facilitate dis cus s ions w ith Three Rivers Park
D istrict and M N D OT. A n approved infras tructure framework would als o allow staff to ar#culate the C ity ’s
vision for the site, and put s taff in a beIer nego#a#ng pos i#on when talking with exis #ng property ow ners
and pros pec#ve interested par#es .
The sec#ons below outline the vision and outcomes for each infrastructure element.
Land Use
“D owntown Brooklyn C enter will feature building and development paerns that are mixed, sustainable,
and connec ve - crea ng nodes of mixed use ac vity and neighborhoods for people to live and enjoy at any
stage of life.”
Land us es within the O pportunity S ite are intended to allow for a mix of us es, including those s uppor#ve of
or oriented around trans it, pedestrian and bicycle facili#es, and that s upport local job crea#on and bus iness
grow th. L and uses of this nature were informed by the 2040 Brooklyn C enter C omprehens ive P lan, and
community input on the need for living-wage jobs, increasing the C ity ’s tax bas e, and providing
opportuni#es to divers ify Brooklyn C enter ’s economy and hous ing. The final land use policy direc#on w ill be
s upported by an implementa#on plan, w hich w ill be imbedded w ithin the final O pportunity S ite M aster P lan
as well as with new z oning districts in an updated C ity zoning code.
Transit O riented D evelopment D istrict (TO D )
The majority of the O pportunity S ite w ill be guided for Transit O riented D evelopment (TO D ). TO D supports
opportuni#es for trans it-suppor#ve and trans it-oriented land uses that als o facilitate pedestrian and bicycle
us e. The TO D district requires intensi#es and paIerns of development that support vibrant pedestrian
ac#vity, and discourages land us es and development paIerns that could decrease w alkability or interfere
w ith future grow th of trans it-oriented development and trans it ridership. The district promotes sustainable
urban places that include places to live, work, s hop, and recreate locally, reduces reliance on automobiles ,
and encourages the use of public trans it. The dis trict fosters job crea#on and economic growth in proximity
to trans it and provides res idents with new hous ing and lifestyle choices w ith more nearby ameni#es and
s ocial interac#on spaces.
S outheast S egment
For the approximately 20-acre s egment located in the southeast of the O pportunity S ite, three land us e
op#ons are being explored. Each is being asses s ed as to their viability, support of community goals, and
alignment w ith the larger Mas ter P lan vision. A s eries of ini#al pros and cons are provided for addi#onal
cons idera#on.
O p#on 1 | Regional Recrea#on AIrac#on
A n ini#al concept for the southeast segment was the introduc#on of a major recrea#on aIrac#on, to
establis h a regional des #na#on within the City. A n aIrac#on of this nature would anchor and drive ac#vity
for the s urrounding O pportunity S ite, providing a significant draw, and create more market interest in the
area. A n aIrac#on of this nature w ould need to provide year-round indoor and outdoor opportuni#es for
public ac#vi#es and gathering, mee#ng a w ell-know n public need. I f designed well, the aIrac#on could
connect to surrounding neighborhoods via sidew alks and trails, promo#ng overall O pportunity S ite
acces s ibility. S uch a us e could als o provide opportuni#es to meet community recrea#on needs ; however, a
s ignificant s ource of cus tomers would need to be draw n from the broader region.
To be viable, the aIrac#on w ould almos t certainly need to be privately ow ned and operated, but with public
S outheast S egment: Regional Recrea on A"rac on
P ros Cons
·Would present a major des #na#on and ac#vity
center for the O pportunity S ite and City
·P romote year-round healthy recrea#on for
residents and vis itors
·Could provide needed community indoor
and/or outdoor gathering s pace(s )
·A ddres s a need for entry-level jobs
·Could support local and regional connec#vity
and s us tainability goals, especially w ith any
outdoor recrea#on features
·P resent opportuni#es for placemaking and
es tablishing unique community des#na#ons
reflec#ve of the many ethnici#es that make up
Brooklyn C enter
·S ingle s ite owner simplifies coordina#on
around roadways, u#li#es, s tormw ater, and
related infrastructure
·U nknown #meline or prospec#ve aIrac#on
·Typically requires high upfront cost of
cons truc#on & management
·Recrea#on jobs are generally limited, low
paying, and seasonal – unlikely to offer a large
number of living-wage jobs or advancement
opportuni#es
·Forecasted for very high traffic demands , which
w ould require s everal traffic mi#ga#on efforts
in/around the O pportunity S ite
·S uch users are few and the pandemic may have
impacted the market demand for s uch a facility
acces s ibility. D is counted rates for Brooklyn C enter residents could be purs ued to promote local benefit.
O p#on 2 | Busines s Mixed Use
Busines s Center O p#ons for the southeast segment has s ince evolved to include the concept of a mixed
bus iness- and manufacturing-oriented land use concept. Leveraging adjacent acces s to major highways and
great visibility, this designa#on w hich w ould allow for a busines s center with manufacturing and busines s
produc#on alongs ide suppor#ve retail/services to encourage a more dynamic and connected experience for
the public, employees, and busines s ow ners . The res ul#ng manufacturing, assembly, produc#on, repair,
and distribu#on uses w ould co-locate s mall-s cale retail uses into an appropriately scaled, integrated district.
This concept does not guide for significant residen#al us es, but may allow for limited live-work
opportuni#es.
I ntroducing industrial type uses to the O pportunity S ite w ould not come w ithout challenges , each of which
w ould require a comprehensive strategy of mindful site design, suppor#ve programma#c and/or policy
s ystems, and sustainability guidance to mi#gate poten#al issues . A pproaches being explored include:
S ustainability guidance to pr omote envir onmental s tewardship, closed-loop material/was te
sys tems , and leveraging na#onal momentum around s us tainable manufacturing prac#ces .
I n contr as t to tr adi#onal large buffers and use s epar a#on, a “neighborhood seam” w ould be
sculpted betw een the TO D and Bus ines s M ixed Us e dis tr icts , integra#ng mul#modal access
and s caled gathering spaces to pr omote natur al tr ans i#ons and acces s ibility. S imilarly, mixing
uses w ithin the district reduces busines s s ystem footprints and busines s cos ts .
Require higher-than-average thres holds of impervious s urfaces and green infras tructure
throughout the dis trict to promote s us tainability and mi#gate stormwater runoff.
L ocal hire and job training pr ogr ams to support local living w age j obs and ensure capitol is
recirculated back into the local community.
A ffordable rental s paces to promote startup and bus iness needs of all s iz es.
Building orienta#on that keeps trucking aw ay from res iden#al areas, and vis ually hidden.
S outheast S egment: B usiness M ixed Use
P ros Cons
·D irectly res ponds to an expres s ed community
need for living w age jobs , while pres en#ng
opportunity for local hire programs .
·Would provide flexible w orking spaces for
busines s es to grow and expand
·Could provide affordable, flexible s pace for local
busines s es in need of bou#que manufacturing
and w arehouse/distribu#on - opportunity to
develop a busines s -focus ed incubator
·Leverages s trong market demand for this type
of use, which als o w ould allow for s tronger
des ign and performance s tandards for projects
·Low infrastructure cos ts regularly produces a
net-posi#ve tax bas e
·W ith integrated uses come opportuni#es to
es tablish a unique district iden#fy, reflec#ng the
rich cultural entrepreneurialis m of the many
ethnici#es that make up Brooklyn Center.
·Retail loca#ons along the edge of the district
present opportuni#es for placemaking and
public gathering s paces .
·Co-loca#ng res iden#al uses near and w ithin the
district reduces transporta#on needs , promotes
access for w orkers, s upports local retail, and
creates general dis trict vibrancy.
·S ignificantly reduces traffic forecas ts compared
to a regional recrea#on aIrac#on, requiring
minimal-to-no mi#ga#on efforts
·Located near s everal regional and s tate-w ide
routes - H w y 100 and I -94/694 – offering strong
distribu#on connec#vity
·Leverages interest of exis #ng area property
owner that w is hes to redevelop their property
·I ndus trial and manufacturing jobs tradi#onally
carry higher was te produc#on and energy needs
·I ntegra#ve land us e models oriented around
indus trial are not well establis hed
·Nois e, light, and related impacts would need to
be well unders tood w ith mi#ga#ng measures
put in place
·Poten#al pollu#on effects w ould need to be well
unders tood w ith mi#ga#ng measures put in
place
·Establis hing closed-loop s ystems requires
heavy coordina#on and management
·Would risk aIrac#ng heavy-shipping interest,
and require coordina#on of s hipping routes
around the O pportunity S ite - this can be
mi#gated with strong zoning that regulates the
s cale and type of busines s us es which would be
permiIed.
·P hased buildout could complicate coordina#on
of roadw ays , u#li#es , stormwater, and related
infras tructure
O p#on 3 | Transit O riented D evelopment
A third op#on w ould be to con#nue use of the TO D des igna#on. G uiding the area for TO D w ould ensure
uniformity of urban form and mix of uses w ith the rest of the O pportunity S ite, and present the mos t
s traight-forward land us e op#on. S uch a designa#on how ever w ould decreas e opportuni#es to establis h a
unique ac#vity center and des #na#on within this segment. I t would als o make more it more difficult to
establis h an employment center with busines s grow th opportuni#es. F urther, res iden#al projects along
H wy 100 may prove to be les s than des irable for developers and res idents, and may require s creening or
other buffers.
S outheas t S egment C oncept : Trans it O rie nted D e velopment
P ros Cons
·G reatest flexibility in allow able land uses
·Would provide opportuni#es for addi#onal
residen#al units to the city
·Con#nuity of neighborhood form and dens ity
with rest of O pportunity S ite
·P romote con#nued s upport for trans it s ervices ,
and mul#-model connec#vity w ithin and around
the O pportunity S ite
·Wouldn’t support the crea#on of an area
des#na#on or employment center
·P roximity to H w y 11 may deter residen#al
development
·D oesn’t leverages interes t of exis#ng area
property ow ner that wishes to increase jobs, or
regular industrial development inquires
·U nknown traffic impacts , as the TO D concept
for this area has not yet been s tudied
·U nknown stormwater and u#lity impacts, as
the TO D concept for this area has not yet been
s tudied
S taff is s eeking direc#on from the City Council on land us e for the southeast 20 acres of the site.
O pen S pace
“D owntown Brooklyn C enter will feature a sy stem of open spaces, streets, trails and pedestrian areas that
promotes healthy living, gathering, social gathering, and environmental responsibility.”
The infrastructure framew ork includes a network of parks and plaz as, connected by sidew alks and trails. A
new neighborhood park is located on the north side of the site, connected by a garden street to a 4-acre
micro regional park that w ill be managed by Three Rivers Park D is trict on the s outh s ide. Pocket parks and
plazas are planned throughout to create places for people to gather and recreate.
S ome of these open spaces and plazas w ill be privately ow ned and maintained, with public access granted
through eas ements. O ther elements of the open s pace plan will be new publicly ow ned spaces that w ill be
maintained by the City. This w ill require careful planning to ens ure that thes e spaces can be maintained in an
efficient and cos t effec#ve manner.
The framework iden#fies the following outcomes for the open space plan:
A n inclusiv e, acces s ible, welcoming and dy namic public realm that becomes a social and gathering
center for the en#re C ity.
A n “ins ide out ” City that aIracts people to spend #me outside together throughout all s eas ons of the
year. Recrea#onal and leisure ac#vi#es for all ages and abili#es.
Connec#ng to and leveraging the poten#al of Centennial Park
A green and ac#ve s tormw ater s y s tem that prov ides health, recrea#onal, and env ironmental benefits
to all.
S tormwater
“A green and ac ve stormw ater sy stem that provides health, recrea onal, and environmental benefits to
all”
A regional s tormw ater plan has been developed for the O pportunity S ite, bas ed on the draG plan. The
regional s ystem is des igned to manage stormwater for the en#re s ite. I nfiltra#on is planned through
neighborhood raingardens, s treets des igned w ith s torm w ater bes t prac#ces , and larger deten#on areas .
S tormw ater would be carried primarily in a linear greenway that runs through the s ite adjacent to a regional
trail.
D evelopment projects would provide infiltra#on enhancements on their s ites and connect to the regional
s ystem. A s part of the implementa#on plan, a build-out plan and fee s ystem needs to be developed to
ensure that the regional stormwater s ystem will be built in a cohes ive manner and can be paid for.
A regional s tormw ater sys tem benefits the C ity by allowing more intens ive us e of developable land and
crea#ng more value. F urther, by u#liz ing innova#ve best prac#ces for s tormw ater and going above and
beyond the minimum s tandards, the regional stormwater plan will be eligible for s tate funding to support its
build-out.
A ccess and Connec vity
“D owntown Brooklyn C enter will have a transporta on sy stem that encourages walking and biking, is well
connected to the region and reduces the need to ow n a car by providing safe, affordable, convenient and
accessible op ons.”
The infrastructure framew ork iden#fies a hierarchy of roadways, s idewalks and trails that connect both
w ithin the site as well as to bring people easily into the site. The roadw ays and their approximate loca#ons
are a cri#cal component to the infras tructure framework because they create a series of pedes trian-s caled
blocks that w ill make up the urban form of the site and dictate where development can occur.
Each roadw ay is categoriz ed by type. The different types of roadw ays dictate their func#on and purpose
w ithin the development. S ome roads will be designed to carry through-traffic and thus more vehicles, w hile
others are des ignated as neighborhood streets , and w ill be des igned for lower traffic.
A garden s treet connects the site north to south and is envis ioned as a low traffic, “shared” s treet, w ith
pocket parks and ample traffic calming devices. The garden street elevates the role of the pedestrian and
bicyclist, w hile minimizing the role of vehicles . This street is s imilar to those s een in places s uch as
A msterdam, w here they are designed as res iden#al streets that discourage cut-through traffic. S tudies have
s how n that thes e types of streets are safer for people and promote social w ellbeing for neighborhoods.
O utcomes of the access and connec#vity framew ork are:
P riori#z ing pedestrians to create a w alkable community
Crea#ng a safe and connected bicycle network
Ens uring vehicular acces s to D owntown from throughout the City and the region.
Es tablishing a netw ork of s tr eets that enables people to get round easily w ithout the us e of a car if
they chos e.
This roadw ay network represents road types that do not currently exis t in the C ity. Becaus e the goals for
the area include a dens er development paIern, on-street parking w ill very likely be part of the design, as
w ell as w ell as integrated sidew alk and trail features. A mple s treetscaping, including street furniture, ligh#ng
and lands caping, all w ill require extens ive maintenance. A s part of the implementa#on plan, it will be
neces s ary to understand w hat the maintenance requirements will be and how this will be accomplis hed. For
example, new equipment and prac#ces may be needed to effec#vely plow and remove s now.
S ome of the streets s how n on the plan may be privately owned and maintained, w hile others will be new
public s treets. D etermining w ho w ill be responsible for building and maintaining the s treet netw ork w ill be a
cri#cal component of the implementa#on plan. I n some cas es, depending on the development #ming, new
s treet sec#ons may need to be constructed in advance of a par#cular development phase. P lanning for this,
and how it will be paid for, will als o be needed.
The exact loca#on of the s treets within the mas ter plan are less important than their typologies . For
example, depending on how the former Target site redevelops, the streets in that area may adjus t a bit;
how ever, their func#on w ill remain cons tant.
N ext S teps
S taff is s eeking direc#on from the City Council on the physical infras tructure framework elements. Most
especially, the framework of L and U s e requires addi#onal dis cus s ing and direc#on.
Bas ed on the dis cus s ion, staff will make any needed revis ions to the infrastructure framew ork, with the goal
of bringing it back to a future Council mee#ng for approval. O nce approved, s taff w ill con#nue the process
of developing the implementa#on component of the Mas ter P lan. This will include a robus t engagement
effort as w ell as designing and planning for the open space, s tormw ater, u#lity and access plans .
B udget I ssues:
None at this #me
I nclusive C ommunity Engagement:
Extensive community engagement has occurred in varying degrees over the las t three years on this site.
A ddi#onal engagement is planned and w ill be presented at the J une 14 C ity C ouncil mee#ng.
A n racist/Equity Policy Effect:
The draG master plan framew ork has been developed from its incep#on with an equity lens, focus ed on
producing equitable outcomes and mi#ga#ng dis placement risks . The infras tructure framework provides
the founda#on upon which the implementa#on por#on of the plan can be developed, which will iden#fy a
community benefits plan to ensure thes e outcomes take place.
S trategic Priori es and Values:
Targeted Redevelopment
AT TA C H M E N TS :
D escrip#on U pload D ate Type
F ramework 6/4/2021 Backup M aterial
Downtown Brooklyn Center
Framework Plan
Brooklyn Center, MN
Draft Report as of June 4, 2021
Prepared for:
City of Brooklyn Center
Prepared by:
Cuningham Group Architecture, Inc.
The City recognizes that historically, development
patterns have resulted in disparate impacts, particu-
larly on communities of color. These disparities have
resulted in harm; such as displacement and exclusion
from the benefits of new investment. The city endeav-
ors to reverse these disparities and enhance equitable
outcomes by working towards a more responsible
means of advancing development
2Downtown Brooklyn Center Master Plan Brooklyn Center, Minnesota Background06/04/21
Introduction..........page 3
Purpose of the Plan
Community Values
Guiding Principles
Overall Vision
Context
Organization of the Site
Four Frameworks.....page 8
Land Use
Open Space
Stormwater
Access and Connection
Table of Contents
3Downtown Brooklyn Center Master Plan Brooklyn Center, Minnesota 06/04/21
1. Introduction
4Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Introduction
Brooklyn Center is a City of the Future.
The population is rich with diversity from around the world. The large
number of children and youth will be future leaders in the years to
come.
Brooklyn Center also brings strengths from its past. Its location is
accessible and connected. And people still value its stock of affordable
housing with convenient access to jobs, shopping and services.
But the transition from past to future is not without challenges. For the
city, it means transitioning spaces and places built for a previous era,
that no longer meet current needs. For the people, it means addressing
past and current practices that exclude some people from benefitting
from progress and opportunity, particularly people of color, people with
low-incomes, and renters. This includes addressing the potential for
displacement and gentrification in the city.
The Opportunity Site project can’t meet every need. But it can help. For
the city, this means creating a new place that strives to meet the needs
of residents and workers, adds value to the community, and becomes
a source of community pride. For the people, this means creating
an accountable process that addresses past problems and provides
transparency, accountability, and benefit to existing residents of the
community.
Purpose of this Plan
This document sets clear high level direction for the community vision
for redevelopment and how the physical structure of the area must
change in order to enable this change.
This Framework Plan has two sections :
1. Background and Vision for Redevelopment
2. Four Frameworks
This document is not a full Master Plan. Adoption and acceptance of
this document sets the direction for a fully developed Master Plan and
it allows City Staff and officials to have discussions with developers and
property owners while a full Master Plan is in development.
5Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21 Background
Overall Vision for a New Downtown
Brooklyn Center
Downtown Brooklyn Center...
• Will be a place that represents all of what Brooklyn Center is and can
become.
• People will choose to invest their time and energies in Downtown
Brooklyn Center as much for what it is as for what it is near.
• It will contain a mix of uses that appeal to both current and future
residents, entrepreneurs, and visitors of Brooklyn Center.
• It will have a significant amount of new medium and high density
housing that helps diversify the City’s housing stock - allowing
residents to stay in Brooklyn Center and also attracting new
residents.
• It will be a place that nurtures local businesses while also attracting
new businesses that appeal locally and regionally.
• It will generate value to the City by leveraging its irreplaceable assets
- proximity to the park and civic buildings, centrality to the City and
it’s people, and access to the region.
Community Values
Expressed in the Plan
Guiding Principles
Fiscal Responsibility
Diversity and inclusivity
Flexibility
Affordability
Health and Wellness
Community Pride
Environmental Sustainability
Local Benefit
Counteracting Displacement
Four guiding principles emerged from the com-
munity workshops that reinforce a sense of
community pride in Brooklyn Center
The Opportunity Site and its Surroundings
Natural Systems
The Opportunity site is located
a mile from the Mississippi
River and adjacent to Shingle
Creek. Both are part of regional
recreational systems that are
significant amenities.
Neighborhoods
The area was developed in the
1960’s when land uses were
strictly separated. As a result,
the site is separated from
neighborhood by large parks and
highways.
Brooklyn Center in the Region The Opportunity Site in Brooklyn Center
Highways
The Opportunity Site is located
along major freeways and
highways. It is easily accessible
from throughout the region. This
Plan recommends a combination
of local and regional attractions
that benefit from the Sites
location and access.
Trails
The Site is located at the junction
of two regional trails which
connect to the Mississippi River
to the east, and large parks and
lakes tot he west north and south.
The Plan recommends leveraging
these assets and routing the trail
through the Site.
Transit
Metro Transit recently opened the
C and D Bus Rapid Transit (BRT)
Lines - both which terminate at
a charging and layover station
adjacent to the Opportunity Site.
This Plan recommends relocating
the station in the Opportunity Site
and making it part of a mobility
hub that serves the area.
Local Roads
The Site has few local roads
serving it and through it.
Redevelopment of the Site
will require considerable new
infrastructure in order for it to
be redeveloped
6Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Publicly Owned Properties in the
Opportunity Site
The Opportunity Site is approximately 100 acres.
Approximately 40% (shown in red) of it is publicly
owned. While this study focuses on the Opportunity
Site, it took into consideration a significantly
larger area because of its close relationship to the
Opportunity Site.
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Background
Opportunity SiteOpportunity Site
Area of Area of Influence and Influence and ConsiderationConsideration
Publicly Owned PropertiesPublicly Owned Properties
With approximately 40% of the Opportunity Site
publicly owned, the City can leverage its influence
on future redevelopment. By undertaking a public
engagement the City can guide redevelopment in a
manner that reflects the wishes, desires, and needs
of the Community.
As property owner and driver of the Master Plan,
redevelopment of the Opportunity Site can deliver
substantially more public benefits than if the redevel-
opment was exclusively privately driven.
7Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Concepts that
Organize The Site
Trail and park connections to the
expansive regional system1
Community Anchors to create a
core to Brooklyn Center3
A spine to organize
neighborhoods2
Local connections to make access
to Downtown easy4
Earle Brown Earle Brown Conference Conference CenterCenter
Earle Brown Earle Brown Elementary Elementary SchoolSchool
Brooklyn Brooklyn Center City Center City HallHall
Summit DriveSummit Drive
Centennial ParkCentennial Park
County County Building / Building / LibraryLibrary
8Downtown Brooklyn Center Master Plan Brooklyn Center, Minnesota 06/04/21
Four Frameworks
Four Frameworks
TOMORROW
Open Space
Stormwater
Transportation
9Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
TODAY
Open Space
Stormwater
Transportation
Land Use
The Opportunity Site is a former retail district that is
currently occupied with a collection of uses that don’t
reinforce each other in a meaningful way. Much of the
land is vacant and underused
The Opportunity Site is adjacent to regional trails, as
well as a large City Park - however there are no parks
open spaces, or direct connections to regional trail
within the Opportunity Site
The Opportunity Site is almost completely
impervious with buildings and parking lots.
Rainwater that falls on the site is piped to
Shingle Creek, picking up contaminants
and sediment along the way. It is out of
compliance with local, watershed, and
regional requirements
The Opportunity Site is easy to get to due to its strong
regional access, however it lacks an internal street
system, pedestrian connections, and bike facilities to
encourage redevelopment.
Open Space
Stormwater
Transportation
Land Use
Downtown Brooklyn Center will feature building and
development patterns that are mixed, sustainable, and
connective - creating nodes of mixed use activity and
neighborhoods for people to live and enjoy at any stage
of life.
Downtown Brooklyn Center will feature system of
open spaces, streets, trails and pedestrian areas that
promotes healthy living, gathering, social gathering,
and environmental responsibility.
A green and active stormwater system
that provides health, recreational, and
environmental benefits to all
Downtown Brooklyn Center will have a transportation
system that encourages walking and biking, is well
connected to the region and reduces the need to own
a car by providing safe, affordable, convenient and
accessible options.
Land Use
Transit Oriented Development
Business Mixed Use
Active Uses Such as Retail
explainer explainer explainer
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FeaturesFrameworkOutcomes
The Framework Plan contains parks, plazas,
and open spaces designed to encourage
gathering, socializing, and cultural expression.
The spaces will be welcoming, accessible, and
inclusive. The pulse of the City will be on display
throughout the year in these spaces. Special
consideration will be given to designing spaces
that are active throughout the year. The spaces
and activities will change with the seasons.
An “Inside Out” City
Land uses allow for developments supportive
of or oriented around transit, pedestrian and
bicycle facilities, and that support local job
creation and business growth. Land uses
of this nature were informed by the 2040
Brooklyn Center Comprehensive Plan, and
community input on the need for living-
wage jobs, increasing the City’s tax base, and
providing opportunities to diversify Brooklyn
Center’s economy and housing. The final land
use policy direction will be supported by an
implementation plan, which will be imbedded
within the final Opportunity Site Master Plan
as well as with new zoning districts in an
updated City zoning code.
10Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Downtown Brooklyn Center will feature building and development patterns that
are mixed, sustainable, and connective - creating nodes of mixed use activity and
neighborhoods for people to live and enjoy at any stage of life.
New market rate and
affordable housing designed
to be walkable, neighborly,
and welcoming.
New neighborhoods with
neighborhood parks and
amenities at their core and a
“garden street” linking them.
Commercial development
that supports local living wage
jobs.
An entrepreneurial market to
incubate and accelerate local
businesses.
Housing for all Stages of LifeHousing for all Stages of Life
Buildings and Spaces for an Entrepreneurial Downtown Brooklyn Center has an
entrepreneurial population with
a high percentage of first and
second generation Americans, the
community boasts small home
grown businesses in retail, food,
and professional services. The
Framework Plan creates buildings
and spaces for these activities to
flourish. An Entrepreneurial Market
will provide in house marketing,
financial, and mentor support while
also offering access to customers
in a market hall. In addition, plazas
will be designed with kiosks, food
trucks, and other opportunities for
pop up retail.
Brooklyn Center lacks the full range
of housing options. As a result,
some residents are foced to look
for housing outside the City as they
move through different phases of
life. The Opportunity Site will include
apartments and townhouses that
are both Market rate and Affordable.
Efforts will also be made to provide
ownership housing across the
income levels as well.
IMIAGE
descriptions on following pages
Land Use (Continued)
11Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
TOD supports opportunities for
transit-supportive and transit-oriented
development, as well as land uses that
support pedestrian and bicycle use.
The TOD district requires intensities
and patterns of development that
support vibrant pedestrian activity, and
discourages land uses and development
patterns that could decrease walkability
or interfere with future growth of
transit-oriented development and
transit ridership. The district promotes
sustainable urban places that include
places to live, work, shop, and recreate
locally, reduce reliance on automobiles,
and encourage the use of public transit.
The district fosters job creation and
economic growth in proximity to transit
and provides residents with new housing
and lifestyle choices with more nearby
amenities and social interaction spaces.
This will be the guidance for the majority
of the Opportunity Site.
Transit Oriented Development District (TOD)
Transit Oriented Development District (TOD)
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Main Street
Three Rivers Park
Land Use (Continued)
Benefits
12Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
The MX-B1 designation guides land for a
mix of business and light industrial uses
with allowance for supporting retail/
service uses. This designation encourages
redevelopment or development of
commercial, office, general business
and light industrial uses in coordination
with supporting retail/commercial uses
to encourage a more dynamic and
connected experience for workers. This
land use does not plan for residential
uses but may include limited live-work
opportunities as established through
supporting official controls. This guidance
will apply to an employment district
adjacent to the highway, providing
proximity to the TOD core, while still
managing freight traffic and impacts
effectively.
Rooftop community solar and micro grid
Pervious pavement to encourage infiltration
Businesses with public interface located at activity nodes that face the neighborhoood
Clear and simple pedestrian connections to the neightbohood
Green edge for stormwater, trails, habitat public art and other shared amenities
Smaller scale employment uses in the neighborhood - maker spaces, live work units
»Living wage jobs with low barrier to entry
»Jobs that are matched to the skills of the
neighborhood
»Higher than average job density (minimum
25 jobs/acre)
»Local hiring and local job development
»Incubator / Accelerator / Collaboration space
for small business and start ups
»Net Positive tax base
»Workforce development and training
»Local and distinctive business mix that
share resouces
»Businesses that complement existing
industrial base
»Employee base supports local retail and
restaurants
»Back room inventory and logistics for local
retail
»Potential event space for community
gathering
Business Mixed Use (MX-B1)
Open Space
Downtown Brooklyn Center will feature system of open spaces, streets, trails and
pedestrian areas that promotes healthy living, gathering, social gathering, and
environmental responsibility.
Framework
An inclusive, accessible,
welcoming and dynamic
public realm that becomes a
social and gathering center for
the entire City.
An “inside out” City that
attracts people to spend time
outside together throughout
all seasons of the year.
Recreational and leisure
activities for all ages and
abilities.
Connecting to and leveraging
the potential of Centennial
Park
A green and active
stormwater system that
provides health, recreational,
and environmental benefits to
all.
Outcomes Features
An “Inside Out” City
Neighborhood ParkD
Stormwater GreenwayE
13Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
The Three Rivers Park District will establish
their first “urban bridging” park in Brooklyn
Center. in an effort to introduce inner ring
communities such as Brooklyn Center to its vast
park resources throughout Hennepin County,
the District endeavors to build 3-4 acre parks
in the underserved communities. These parks
will serve as a “bridge” to the more natural
parks in the county. The District will fund, build,
manage, maintain, and program these parks
specifically for Brooklyn Center residents.
The Framework Plan contains parks, plazas, and
open spaces designed to encourage gathering,
socializing, and cultural expression. The spaces
will be welcoming, accessible, and inclusive.
they will draw indoor activities to the outdoors.
The pulse of the City will be on display
throughout the year in these spaces. Special
consideration will be given to designing spaces
that are active throughout the year. The spaces
and activities will change with the seasons.
IMIAGE
IMIAGE
Three Rivers “Bridging” ParkA
Parklets and Garden StreetB
BC PlazaC
A
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B
B
C
Parklets
Neighborhood Parks
Plaza
Three Rivers Park
Greenway
Regional Recreational Attraction
Three Rivers Urban Bridging Park
Stormwater
FeaturesFrameworkOutcomes
14Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Stormwater will be integrated with the design
of the area so it has multiple functions. Instead
of relyingon expensive “hard” infrastructure
to move rainwater to areas lakes and rivers,
rainwater will be harnassed and used as a
resource. For example, the linear greenway that
filters water before it percolates into the soils
will als serve as a regional bike trail.
In areas where stormwater is underground, it
will be stored and used for irrigation, with th e
excess returning to the groundwater aquifer.
A green and active stormwater system that provides health,
recreational, and environmental benefits to all
Downtown will feature a
stormwater system that man-
ages rainwater throughout
the District while also serving
as a health, recreational, and
aesthetic amenity for residents
and visitors.
Urban Green Streets
Greenway and
treatment train
Neighborhood Rain
Gardens
Larger detention areas
Linear Stormwater parks and greenways
along the edge of the large greenspace C
Green Streets with Urban StormwaterA
Ponding areasD
A Garden Street with Rain gardens and
ParkletsB
C
B
A
D
Shared Stacked Green infrastructure
District Stormwater System
Pavers and soil cells filter
runoff and encourage root
growth
Blue Green Roofs use rain
water to irrigate plants on
roofs and on site.
Soil cells with impermeable
liners keep polluted water
from infiltrating
A diverse mix of salt tolerant
and winter hardy plants
reduce heat island effects and
enhance human comfort
C
A
D
B
C
A
D
B
Access and Connectivity
Shingle Creek Parkway
Main Street
Garden Street
Parkway
Neighborhood Street
Prioritizing pedestrians to
create a walkable community
Creating a safe and connected
bicycle network
Ensuring vehicular access to
Downtown from throughout
the City and the region.
Establishing a network of
streets that enables people to
get round easily without the
use of a car if they chose.
FrameworkOutcomes Features
Mobility Hub?
Integrating Regional Trails
15Downtown Brooklyn Center Framework Plan Brooklyn Center, Minnesota 06/04/21
Downtown Brooklyn Center will have a transportation system that encourages
walking and biking, is well connected to the region and reduces the need to own a
car by providing safe, affordable, convenient and accessible options.
A “Garden Street” will be the primary pedestrian
spine through the development. The Garden
Street will be a narrow residential space lined
with townhouses and small apartments. It
will be a primarilly pesedstrian zone, though
bicyclists and slow speed cars would be
permitted, primarilly to access residential
parking areas. The Garden Street will contain
small play spaces, gardens, and other residential
amenities.
Slow Zones are segments of streets that
are specifically designated and designed for
slower traffic than otherwise similar streets in
the City. The Framework Plan will designate
areas around the Three Rivers Park and at the
terminus of John Martin Drive as Slow Zones.
This will improve the quality of the adjacent
spaces, create a safer environment for all users,
and enable pedestrians to easilly cross the
street.
Garden Street
Slow Zones