HomeMy WebLinkAboutCAFR-2008
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF BROOKLYN CENTER,
MINNESOTA
Cornelius L. Boganey
City Manager
Prepared By:
FINANCE DIVISION
DEPARTMENT OF FISCAL & SUPPORT SERVICES
Daniel Jordet
Director
Clara Hilger
Assistant Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2008
(Member of Government Finance Officers
Association of the United States and Canada)
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal 1
Principal Officials 6
Organizational Chart 7
Certificate of Achievement 8
FINANCIAL SECTION
Independent Auditor’s Report 9
Management’s Discussion and Analysis 11
Basic Financial Statements:
Statement of Net Assets 21
Statement of Activities 22
Governmental Funds
Balance Sheet 26
Statement of Revenues, Expenditures, and Changes in Fund Balances 30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Net Activities 33
Proprietary Funds
Statement of Net Assets 34
Statement of Revenues, Expenses, and Changes in Fund Net Assets 36
Statement of Cash Flows 38
Notes to the Financial Statements 41
Required Supplementary Information:
Budgetary Comparison Schedule-General Fund 75
Budgetary Comparison Schedule-Tax Increment District No. 3 80
Schedule of Funding Progress – Other Post Employment Benefits 81
Note to Required Supplementary Information 82
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 85
Combining Balance Sheet-Nonmajor Special Revenue Funds 88
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances-Nonmajor Special Revenue Funds 90
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FINANCIAL SECTION (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Special Revenue Fund-Housing and Redevelopment Authority 92
Special Revenue Fund-Economic Development Authority 93
Special Revenue Fund-Earle Brown Tax Increment District 94
Special Revenue Fund-Tax Increment District No. 4 95
Special Revenue Fund-Police Drug Forfeiture 96
Special Revenue Fund-Community Development Block Grant 97
Special Revenue Fund-City Initiatives Grant 98
Combining Balance Sheet-Nonmajor Debt Service Funds 100
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Debt Service Funds 101
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Debt Service Fund-G.O. Improvement Bonds 102
Debt Service Fund-General Obligation Bonds 103
Debt Service Fund-Tax Increment Bonds 104
Combining Balance Sheet-Nonmajor Capital Project Funds 106
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Capital Project Funds 107
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Capital Project Fund-Infrastructure Construction 110
Capital Project Fund-Capital Improvements 111
Capital Project Fund-Municipal State Aid for Construction 112
Capital Project Fund-Earle Brown Heritage Center Improvements 113
Capital Project Fund-Street Reconstruction 114
Capital Project Fund-Technology 115
Nonmajor Enterprise Funds
Combining Statement of Net Assets 118
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 119
Combining Statement of Cash Flows 120
Internal Service Funds
Combining Statement of Net Assets 122
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 123
Combining Statement of Cash Flows 124
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STATISTICAL SECTION (unaudited)
Net Assets by Component 126
Changes in Net Assets 127
Governmental Activities Tax Revenue by Source 131
Fund Balances – Governmental Funds 132
Changes in Fund Balances – Governmental Funds 134
Assessed Tax Capacity and Estimated Actual Value of Taxable Property 136
Property Tax Rates – Direct and Overlapping Governments 138
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
Ratios of Outstanding Debt by Type 142
Ratios of General Bonded Debt Outstanding 143
Computation of Direct and Overlapping Debt 144
Legal Debt Information 145
Pledged Revenue Coverage 146
Demographic and Economic Statistics 148
Principal Employers 149
Full Time City Government Positions by Function 150
Operating Indicators by Function 151
Capital Asset Statistics by Function 152
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City of Brooklyn Center
A Millennium Community
June 1, 2009
Honorable Mayor and Members of the City Council
City of Brooklyn Center
Transmitted herewith is the Comprehensive Annual Financial Report of the City of
Brooklyn Center for the fiscal year ended December 31, 2008.
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.
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 report
is included in the financial section of this report. In addition, MMKR is required to issue
an opinion on the City’s management and accounting for grant funds from the federal
government. This “Single Audit” opinion, when included, is designed to meet the
monitoring needs of federal grantor agencies. That report is not required for 2008 as
the City received less than $ 500,000 in total federal grants.
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 and is located in northern
Hennepin County. 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
runs the daily operations of the City.
The City of Brooklyn Center provides a full range of municipal services to its citizens.
These include police and fire protection services, zoning and code enforcement,
6301 Shingle Creek Parkway Recreation and Community Center Phone & TDD Number
Brooklyn Center, MN 55430-2199 (763) 569-3400
City Hall and TDD Number (763) 569-3300 FAX (763) 569-3434
FAX (763) 569-3494
www.cityofbrooklyncenter.org
municipal planning, parks, recreation activities, construction and maintenance of
streets, provision of water, wastewater collection and treatment, stormwater collection
and treatment, and street lighting. Community and economic development are
facilitated through the Housing and Redevelopment Authority and the Economic
Development Authority. 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, a nine-hole executive 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 15
of each year for the ensuing year’s collection. This establishes a maximum levy that
may subsequently be lowered but not raised. A ceiling is established from time to time
on that levy by the Minnesota Legislature. The ceiling is normally exclusive of levies for
debt service and referendum approved levies. Effective establishment of this levy
requires that a preliminary budget be prepared. The City Manager prepares such a
budget each summer 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
hearings known as Truth in Taxation hearings in each jurisdiction. The City’s hearing
includes information about the budget, the property tax levy and the priorities of the
City Council for the coming year as made evident by the budget allocations. Public
comment is heard and considered at this hearing. The final property tax levy is
adopted at a subsequent meeting. This forms the basis for the budget preparation and
presentation framework.
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 must be reviewed and reprioritized as the Capital
Improvement Program is developed each year.
Economic Condition and Outlook
The City of Brooklyn Center 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
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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 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 2000 Census data for the City
was 29,172, a slight increase from the 1990 Census data of 28,887. The number of
housing units has remained stable at 11,430 units; there were 11,704 housing units in
1990. As in most mature, first-ring suburbs there is a slight trend toward conversion of
single family homes to rental properties.
The total estimated market value of real and personal property within the City increased
2.66% in 2008 over 2007, 5.13% in 2007 over 2006, and 6.39% in 2006 over 2005.
Industrial values posted the largest gains going up nearly 7.6%. Multi-family and
personal property values increased slightly from 2007 to 2008. However, the trend for
increased value in the housing market reversed dramatically in 2008 and will be
reflected in lower property values for residential homes for the foreseeable future.
Residential foreclosures and vacant properties were another facet of the economic
outlook for the City in 2008. 477 or 5.78% of non-apartment residential properties in
Brooklyn Center went to Sheriff’s Sale during 2008 with 179 of those properties still in
the redemption period as of December 31, 2008. Vacant residential properties as of
December 31, 2008 numbered 293, 3.55% of the City’s non-apartment residential
housing.
Commercial/industrial properties account for 33.4% of the City’s taxable net tax
capacity in 2008, an increase of 3.2% over 2007.
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.
Factors Affecting Financial Condition
Major Events of 2008 and Local Economy
Brooklyn Center is a mature, developed first ring suburb of Minneapolis that is working
to revitalize itself. With its affordable housing, excellent schools, beautiful parks, and
convenient transportation access it has the potential to continue to be a vibrant
community for many years to come. 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:
replacement and renewal of the commercial areas of the City; reconstruction and
enhancement of its streets, utilities, and parks; and the revitalization of neighborhoods.
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Redevelopment continued to be the key to commercial and industrial tax base growth.
The City has acquired three adjacent business properties at the intersection of Highway
100 and Interstate 94. The buildings on the sites were demolished and Phase I
environmental assessments prepared. This created a 14 acre redevelopment site.
Preparations for development of 140,000 square feet of Class A office space and an
adjacent parking structure on 8 acres of the site are ongoing and construction is
expected to begin in the fall of 2009.
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A 14 acre redevelopment site at the intersection of Logan and 57 Avenues has
encountered delays because of environmental clean-up of contaminants from a dry
cleaning establishment. The extent of the contamination has been established and
remediation is underway. Study of this issue is expected to be completed early in 2009
with remediation work continuing into 2010.
The City’s “Opportunity Site” continues to be a focus for redevelopment efforts. The
City’s acquisition of a former automobile dealership site and an adjacent bar/restaurant
site present an opportunity to combine parcels with adjacent properties to create
redevelopment opportunities along County Road 10 and Highway 100.
The hospitality industry contributes a significant amount to Brooklyn Center’s economy.
Lodging tax provided over $ 320,000 for 2008 fiscal year operations. Construction
continued in 2008 on a new 260 bed hotel facility adjacent to the City’s Earle Brown
Heritage Center conference facility. The new hotel will be completed in 2009.
Infrastructure and Transportation
As part of a planned replacement of the aging infrastructure, the City continued the
program for street and utility improvements by reconstructing the Maranatha
neighborhood streets and the Northway Drive neighborhood in 2008. When streets are
reconstructed in this program, aging water, sanitary and storm sewer infrastructure is
also repaired or replaced. These improvements are funded by general obligation
improvement bonds supported with special assessments against benefited properties,
and funds 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. The current Capital Improvements Plan reflects
the reconstruction of all city streets and utilities by 2021. An additional benefit of these
neighborhood projects has been the increased activity by residents in the maintaining
and cleaning up of their properties following reconstruction projects.
Development of utility rate models has improved the City’s ability to generate cash flow
and schedule improvements to the water and sewer systems. Separate funds for street
lighting and stormwater drainage have also helped control and prioritize infrastructure
improvements and operations in these areas.
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Cash Management
The City of Brooklyn Center receives interest on all funds deposited by the City in its
bank and investment accounts. During 2008, funds were invested in various certificates
of deposit, treasury securities and mortgage back securities considered acceptable risks
under the investment limitations of Minnesota Statutes 118A. At the close of the fiscal
year this portfolio earned interest at rates ranging from 2.95% to 4.30% annually. In
addition, the City invests in the 4M funds sponsored by the League of Minnesota Cities.
2008 saw a decrease in the rate of interest paid by the 4M funds, from 4.70% at the
beginning of the year to 0.75% at the end of the year. While the return on the
investment is significantly lower for 4M and 4MPlus the advantage of using these funds
is liquidity. Treasury management seeks a balance between the availability of cash and
investment for maximum return without undue risk of public funds.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Brooklyn Center for its Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended December 31, 2007. The City was first awarded this certificate in 1966 and
has received a total of 26 certificates, including the certificate awarded for the 2007
report. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized Comprehensive Annual Financial
Report. They must satisfy both accounting principles generally accepted in the United
States and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year. It is expected that the
2008 report conforms to Certificate of Achievement Program requirements. It will be
submitted to the GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation and publication of this report would not have been possible without the
efficient work of the Finance staff, especially Clara Hilger, Assistant Finance Director.
We would like to acknowledge all staff that contributed their efforts to the Finance
operations in 2008. 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,
Cornelius L. Boganey Daniel Jordet
City Manager Director of Fiscal & Support Services
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CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2008
NamePositionTerm of OfficeTerm Expires
ELECTED OFFICIALS
Tim WillsonMayorFour YearsDecember 31, 2010
Kay LasmanCouncil MemberFour YearsDecember 31, 2008
Mary O'ConnorCouncil MemberFour YearsDecember 31, 2008
Dan RyanCouncil MemberFour YearsDecember 31, 2010
Mark YelichCouncil MemberFour YearsDecember 31, 2010
APPOINTED OFFICIALS
Cornelius L. BoganeyCity ManagerAppointed
Charles LeFevreCity AttorneyContractual Appointee
Sharon KnutsonCity ClerkAppointed
Scott BechtholdPolice ChiefAppointed
Steve LillehaugDirector of Public Works/City EngineerAppointed
Lee GatlinFire ChiefAppointed
James GlasoeCommunity Activities, Recreation and Services DirectorAppointed
Gary EitelCommunity Development DirectorAppointed
Daniel JordetDirector of Fiscal and Support ServicesAppointed
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Residents
City of Brooklyn Center, Minnesota
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
(the City) as of and for the year ended December 31, 2008, which collectively comprise the City’s basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
the City’s management. 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 of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City at December 31, 2008, and the respective
changes in financial position and cash flows, where applicable thereof, for the year then ended, in
conformity with accounting principles generally accepted in the United States of America.
As described in Note 5 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board Statement No. 45, “Accounting and Financial Reporting by Employers for
Post-Employment Benefits Other Than Pensions,” during the year ended December 31, 2008.
In accordance with Government Auditing Standards, we have also issued a report dated May 26, 2009 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 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 internal control over
financial reporting or on compliance. This report is an integral part of an audit performed in accordance
withGovernment Auditing Standards and should be considered in assessing the results of our audit.
(continued)
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Brooklyn Center (the City), we offer readers of the City of Brooklyn Center’s
Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2008. 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 through 5 of this CAFR.
Financial Highlights
The assets of the City exceeded liabilities by a 4.5 to 1 margin at the close of the most recent fiscal
year. Current assets exceed current liabilities by a 9 to 1 margin. The $ 117,004,392 of net assets
includes cash and investments, streets, buildings, equipment, land and other City assets. Of this
amount, $ 12,160,027 is classified as unrestricted net assets which may be used to meet the
government’s ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
The City’s total net assets increased by $ 2,441,307 or 2.1% from 2007 to 2008.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $ 32,547,730. Of this total amount, $ 33,119,083, or 102% is designated or reserved
through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $ 7,743,438 included $ 890 reserved
for prepaid items, $ 21,105 reserved for inventories, and $ 7,721,443 designated for cash flow
purposes.
The City’s total outstanding debt increased by $ 4,115,000 during the current fiscal year, from
$ 25,410,000 to $ 29,525,000.
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 CAFR 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 consolidated financial statement.
The statement of net assets presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets 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 assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of 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).
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, recreation and economic development. The business-type activities of the City include
water and sewer, street lighting, liquor operations, golf course, convention center, storm drainage and recycling.
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Management’s Discussion and Analysis
The government-wide financial statements can be found on pages 21 through 23 of this CAFR.
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 other 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 resource, 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 statement. 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 nineteen 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 General fund, Tax Increment District No. 3 special revenue fund, the G.O.
Improvement Bonds debt service fund, and the Infrastructure Construction capital project fund, which are
considered to be major funds. Data from the other 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 elsewhere in this CAFR.
The basic governmental fund financial statements can be found on pages 26 through 33 of this CAFR.
Proprietary funds
. 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 governmental-wide financial statements.
The City uses enterprise funds to account for its municipal liquor, golf course, Earle Brown Heritage Center,
water, sanitary sewer, storm drainage, recycling/refuse, and street lighting operations. 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 for its central garage, employee retirement, and compensated absences. Because all
of these services predominantly benefit governmental rather than business-type functions, they have been
included within the governmental activities in the government-wide financial statements.
Proprietary funds provide similar information to the government-wide financial statements but in more detail.
The proprietary fund financial statements provide separate information for the municipal liquor, golf course,
Earle Brown Heritage Center, water utility, sanitary sewer utility, and storm drainage utility operations, each of
which are considered to be major funds of the City. Conversely, all internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 34 through 39 of this CAFR.
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 41 through 73 of this CAFR.
Other information.
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information on budgetary compliance for its major funds. The City
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Management’s Discussion and Analysis
adopts an annual appropriated budget for its general, special revenue, debt service, and capital project funds. A
budgetary comparison statement has been provided for the general and major special revenue fund to
demonstrate compliance with this budget. These can be found on pages 75 through 80 of this CAFR.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal
service funds are presented immediately following the required supplementary information on budgetary
comparisons. Combining and individual fund statements and schedules can be found on pages 84 through 124
of this CAFR.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indictor of a government's financial position. In the
case of the City, assets exceeded liabilities by $ 117,004,392 at the close of the most recent fiscal year.
The largest portion of the City's net assets ($ 72,993,581 or 62 percent) reflects its investment in capital assets
(e.g. land, infrastructure, buildings, machinery, and 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.
CITY'S NET ASSETS
All 2007 comparative balances are net of the adjustments described in Note 3.D. and Note 3.E. on page 52 of
this CAFR.
As of the close of the current year, there is $ 1,002,684 in G.O. Improvement bond debt included in the Long-
term liabilities outstanding reported in the Governmental Activities that was issued to finance capital assets
reported in the Business-type Activities. This amount is not used to reduce Invested in capital assets net of
related debt in the Governmental Activities. Neither does it reduce Invested in capital Assets of the Business-
type Activities. However, it does reduce the Invested in capital assets, net of related debt in the total column.
A portion of the of the City’s net assets represents resources that are subject to external restrictions on how they
may be used. These restrictions include debt payment from assessments and taxes collected, and tax increments
collected for qualified projects. The remaining balance of unrestricted net assets ($ 12,160,027) may be used to
meet the City's ongoing obligations.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
assets, both for the government as a whole, as well as for its separate governmental and business-type activities.
The same was true for the prior fiscal year.
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Management’s Discussion and Analysis
Current assets increased in the governmental activities primarily due to the issuance of bonds, the proceeds of
which are to be used for redevelopment within the City. Total liabilities increased with the issuance of two new
bond issues in 2008. The increase in restricted net assets can be attributed to the acquisition of redevelopment
property.
Current assets in the business-type activities increased due to higher per unit fees charged in 2008 on utility
services and a conscious effort to minimize direct costs to provide services in those activities.
Governmental Activities
Governmental activities resulted in a decrease of the City's net assets by ($ 285,828), while the increase in total
net assets was $ 2,441,307. Key elements of the changes are as follows:
CITY’S CHANGES IN NET ASSETS
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Management’s Discussion and Analysis
In the Governmental Activities, Operating grants and contributions increased due to the award of a federal grant
for police officers. Total taxes increased by $ 400,000 because of higher taxes levied. Grants and contributions
not restricted decreased due to the State’s unallotment of the second half of the City’s general aid awarded for
2008. General government expenses increased due to increased legal fees for the CenterPointe lawsuit,
increased utility costs, and building repairs. Public safety expenses increased due to increased costs for utilities
and motor fuels. Public works expenses decreased due to lower equipment repairs and replacement costs.
Parks and recreation expenses increased due to increased utility costs for the Community Center and Pool as
well as building repairs.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Governmental Activities -2008Revenues
Other revenues
Unrestricted investment
2.8%
earnings
Other taxes
3.8%
14.7%
Charges for services
11.6%
Operating grants and
contribtutions
4.2%
Capital grants and
Property taxes and tax
contributions
increments
11.2%
51.7%
Governmental Activities -2008Expenses
Economic development
Interest on long-term
16.4%
debt
5.0%
General government
Parks and recreation
15.4%
12.8%
Community services
0.3%
Public works
11.5%
Public safety
38.6%
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Management’s Discussion and Analysis
Business-type activities
Business-type activities increased net assets by $ 2,727,135. Below are graphs showing the business-type
activities revenue and expense comparisons:
Business-type Activities -2008Revenues
Unrestricted investment
earnings
2.2%
Net charges for services
97.8%
Business-type Activities -2008Expenses
Storm drainage utility
Non-major enterprise
11.3%
4.4%
Municipal liquor
11.0%
Sanitary sewer utility
29.4%
Golf course
3.1%
Earle Brown Heritage
Center
Water utility
23.4%
17.4%
Expenses increased in 2008 in Municipal Liquor due to an increase in full time staff. Street light utility
expenses decreased due to replacement of some standard streetlight fixtures with decorative light fixtures.
16
Management’s Discussion and Analysis
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, unreserved 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
$ 32,547,730. Approximately 31% of this amount, $ 10,019,663, is reserved (restricted in its use) because it has
already been committed to specific uses by outside influences or action of the City Council; 1) $ 5,187,263 to
provide for debt service, 2) $ 792,488 for advances to other funds, 3) $ 489,928 for committed contracts, 4)
$ 8,644 for prepaid items, 5) $ 21,105 for inventories, and 6) $ 3,520,235 for statutory housing obligation. The
unreserved fund balance of $ 23,099,420 includes designations of 1) $ 7,721,443 for general fund working
capital, 2) $ 10,391,989 for economic development, and 3) $ 4,985,988 for capital improvements. The
remaining deficit balance of $ 571,353 is undesignated and unreserved.
The general fund is the primary operating fund of the City. At the end of the current fiscal year, total fund
balance reached $ 7,743,438, all of which was either reserved or designated. As a measure of the general fund’s
liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance
represents 51% of total general fund expenditures for 2008.
The fund balance of the City’s general fund decreased by $ 198,976 in 2008. This decrease was due to a
$ 540,000 unallotment of intergovernmental aid provided by the State of Minnesota late in the fiscal year.
The Tax Increment District No. 3 fund had a total fund balance of $ 10,882,132 at the end of 2008. The net
decrease in the fund balance was $ 1,760,556. The majority of this decrease was the net result of the issuance
of $ 4,335,000 in bonds and the purchase of property for redevelopment of $ 6,475,000.
The G.O. Improvement Bonds fund had a fund balance of $ 2,793,086 at the end of 2008, all of which was
reserved for debt service. The net decrease in fund balance for 2008 was $ 233,299, which was due to the use
of collections in previous years to pay bond principal and interest as programmed.
The fund balance of the Infrastructure Construction fund at the end of 2008 had a deficit of $ 276,982. This
represents a reduction from the 2007 deficit of $ 1,013,446. This reduction is the result of the City issuing
improvement debt for the special assessment portion of both the 2007 and 2008 projects.
Proprietary funds
. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The unrestricted net assets in the respective major proprietary funds are the municipal liquor fund - $ 1,890,998,
golf course - $ (786,181), Earle Brown Heritage Center - $ 964,893, water utility - $ 2,987,184, sanitary sewer
utility - $ 3,167,259 and storm drainage utility - $ 2,295,241. The increases (decreases) in net assets for the
major enterprise funds were: municipal liquor $ 270,720, golf course $ (46,446), Earle Brown Heritage Center
$ (313,440), water utility $ 280,452, sanitary sewer utility $ 328,974, and storm drainage utility $ 1,904,082.
General Fund Budgetary Highlights
During the year, there were no amendments to the General Fund budget appropriations. Budget exceeded actual
revenues and other financing sources by $ 491,692. The major contributor to this was the unallotment of aids
by the State in December 2008. Actual expenditures and other financing uses were lower than budgeted for the
year by $ 292,716. This resulted from the reduction of the amounts paid to the internal service fund for
compensated absences balances at the end of the year, eliminating the budgeted transfer of money to the
Technology Fund, reduction of the transfers to the Central Garage Fund for vehicle replacement that was
budgeted, and a conscientious effort to reduce expenditures due to the cuts in state aid.
17
Management’s Discussion and Analysis
It is anticipated that the unallotment of state aid that occurred in 2008 will increase in amount over the next two
fiscal years. This will adversely affect the operations of the General Fund requiring reprioritization of General
Fund programs and procedures. The City Council is, subsequent to the 2008 year end reports, preparing for
further reductions in state aid for the 2009 and 2010 fiscal years.
Capital Asset and Debt Administration
Capital assets
. The City’s investment in capital assets for governmental and business type activities as of
December 31, 2008 totals $ 81,958,581 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, infrastructure, machinery and equipment. The total increase in the City’s investment
in capital assets from 2007 to 2008 was 4.4 percent (3.6 percent increase for governmental activities and a 5.2
percent increase for business-type activities).
Major capital asset events during the year included the following:
Two major infrastructure reconstruction projects were completed during the year, with a final cost of
$ 5,062,157.
Two infrastructure reconstruction projects were begun and substantially completed during the 2008.
These projects account for $ 5,839,511 in construction-in-progress at the end of the year.
CITY'S CAPITAL ASSETS
(net of depreciation)
Additional information on the City’s capital assets can be found in Note 4.C. on pages 55 through 57 of this
CAFR.
Long-term debt
. At the end of the current fiscal year, the City had long-term bonded debt outstanding of
$ 29,525,000, all of which is backed by the full faith and credit of the government. Of the total outstanding
debt, $ 3,275,000 is general obligation bonds payable from directly levied property tax, $ 20,560,000 is tax
increment bonds payable with the collected proceeds of tax increment projects and $ 5,690,000 is improvement
bonds payable from special assessment levies against individual properties adjacent to the improvements.
Additional long-term liabilities include $ 1,075,953 for compensated absences, the accumulated vacation and
vested sick leave not used by employees at the end of 2008, and $ 147,045 for net OPEB obligation related to
health insurance costs paid by and for retirees.
18
Management’s Discussion and Analysis
CITY’S OUTSTANDING DEBT
General Obligation Bonds, General Obligation Tax Increment Bonds,
General Obligation Improvement Bonds, and Compensated Absences
The City’s total bonded debt increased by $ 4,115,000 during the current fiscal year due to the net result of the
issuance of two bonds, $ 4,335,000 of general obligation tax increment bonds and $ 2,390,000 of general
obligation improvement bonds and the scheduled payment of bond obligations.
The City maintains an A1 rating from Moody's on all issues.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated
Market Value. The current debt limitation for the City is $ 65,676,378. Only $ 2,076,766 of the City's net
outstanding debt is counted within the statutory limitation representing about 3.2 percent of the total limit.
Additional information on the City’s long-term debt can be found in Note 4.F. on pages 60 through 62 of this
CAFR.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City is 5.6 percent at the end of the 2008 fiscal year, which is an increase
from the rate of 4.6 percent a year ago. This compares to the State’s average unemployment rate of 4.9
percent and the national average of 4.8 percent.
Redevelopment of the Central Business District and other commercial properties continues and will yield
net growth in tax base and stability in tax base through mixed use development goals.
Utility rates have been subjected to rigorous study and projected into a 15 year model to allow for system
maintenance, technology changes and capital repair and replacements while moderating annual rate
adjustments.
All of these factors were considered in the preparation of the City’s budget for the 2009 fiscal year.
During the year, unreserved fund balance in the general fund decreased by $ 198,976. Policy requirements for
working capital in the General Fund will be reexamined in light of the expected significant cutbacks of state aid
to the Fund in future years.
Water, sanitary sewer, storm, and street light utility rates were increased for the 2008 budget year. Residential
water rates were increased by 5.0 percent, sanitary sewer by 2.5 percent, storm drainage by 7.2 percent and
street lights by 4.9 percent. These increases were necessary to ensure that the municipal utilities be self-
supporting through revenue, as required by the City charter. These rates along with future projected rate
increases are reviewed annually to ensure compliance with the requirements of the charter.
19
Management’s Discussion and Analysis
Requests for information
This financial report is designed to provide a general overview of the City’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 Director of Fiscal and Support Services,
City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
20
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 1
STATEMENT OF NET ASSETS
December 31, 2008
GovernmentaBusiness-Type
l
ASSETS
ActivitiesActivitiesTotal
Cash and investment$38,384,706$ 8,742,598$47,127,304
s
Receivables:
Accounts262,208 2,059,8152,322,023
Taxes653,986 -653,986
Special assessments4,176,429 562,2324,738,661
Internal balances876,128 (876,128)-
Due from other government869,254 -869,254
s
Prepaid expenses8,644 192,120200,764
Inventories46,449 634,644681,093
Assets held for resale11,805,629 11,805,629-
Restricted assets:
Cash and investment108,000 -108,000
s
Capital assets:
ondepreciable8,236,134 6,367,00714,603,141
N
Depreciable31,150,087 36,205,35367,355,440
Total assets96,577,654 53,887,641150,465,295
LIABILITIES
Accounts payable408,208 223,609631,817
Accrued salaries and wages447,908 66,529514,437
ueo oer governmens, ,,
Duetoothergovernments64896705073539
Dttht64896705073539
Contracts payable359,167 147,338 506,505
Deposits payable875 232,354233,229
Accrued interest payable515,994 -515,994
Unearned revenue17,902 111,482129,384
Liabilities payable from restricted assets:
Deposits payable108,000 -108,000
Compensated absences payable:
Due within one yea107,595 -107,595
r
Due in more than one yea968,358 -968,358
r
et OPEB obligation:
N
Due in more than one yea147,045 -147,045
r
Bonds payable:
Due within one yea -4,140,000 4,140,000
r
Due in more than one yea25,385,000 25,385,000-
r
Total liabilities32,612,541 848,36233,460,903
NET ASSETS
Invested in capital assets, net of related debt31,423,905 42,572,36072,993,581
Restricted for:
Debt service8,772,819 8,772,819-
Tax increment purposes23,077,965 23,077,965-
Unrestricted690,424 10,466,91912,160,027
Total net assets$63,965,113$ 53,039,279$117,004,392
The accompanying notes are an integral part of these financial statements.The accompanying notes are an integral part of these financial statements.
21
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2008
Charges Fo
r
FUNCTIONS/PROGRAMS
ExpensesServices
Primary government:
Government activities:
General governmen$3,498,767$1,115,038
t
Public safet8,760,880780,080
y
Public works2,596,754 127,489
Community service 72,893-
s
Parks and recreation2,910,825754,079
Economic developmen3,713,34024,435
t
Interest on long-term deb1,125,712-
t
Total government activities22,679,1712,801,121
Business-type activities:
Municipal liquor1,125,5171,492,644
Golf course304,832253,824
Earle Brown Heritage Center2,403,6761,959,628
Recycling and refus 259,774265,983
e
Street light utilit 250,260182,402
y
Water utilit1,783,2752,003,633
y
Sanitary sewer utilit3,018,4183,264,649
y
Storm drainage utilit1,162,9571,553,236
y
Total business-type activities10,247,06011,037,648
Total primary governmen$32,926,231$13,838,769
t
The accompanying notes are an integral part of these financial statements.
22
Statement 2
Program Revenueset (Expense) Revenue and Changes in Net Assets
N
OperatingCapitalPrimary Governmen
t
Grants anGrants anGovernmentaBusiness-Type
ddl
ContributionsContributionsActivitiesActivitiesTotal
$ 100$ -$(2,383,629)$ -$(2,383,629)
776,508 -(7,204,292) -(7,204,292)
90,000 2,706,056326,791 -326,791
- -(72,893) -(72,893)
- -(2,156,746) -(2,156,746)
137,276 -(3,551,629) -(3,551,629)
- -(1,125,712) -(1,125,712)
1,003,884 2,706,056(16,168,110) -(16,168,110)
- --367,127367,127
- --(51,008)(51,008)
- --(444,048)(444,048)
- -- (6,209)(6,209)
- -- 67,85867,858
- --220,358220,358
- --246,231246,231
- --390,279390,279
- --790,588790,588
$ 1,003,884$ 2,706,056(16,168,110)790,588(15,377,522)
General revenues:
Property taxes12,458,724 -12,458,724
Tax increments2,912,773 -2,912,773
Lodging taxes619,962 -619,962
Grants and contributions not
restricted to specific programs607,073 -607,073
Unrestricted investment earning 243,322903,939 1,147,261
s
Gain on disposal of capital asset73,036 -73,036
Transfers(1,693,225)1,693,225-
Total general revenues and transfers15,882,2821,936,54717,818,829
Change in net assets(285,828)2,727,1352,441,307
et assets - beginning, as previously state 50,312,14460,580,262 110,892,406
Nd
Prior period adjustment1,153,297 -1,153,297
Change in accounting principle2,517,382 -2,517,382
et assets - beginning, restate 50,312,14464,250,941 114,563,085
Nd
et assets - ending$63,965,113$53,039,279$117,004,392
N
23
24
FUND FINANCIAL STATEMENTS
25
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2008
Tax Incremen
t
GeneralDistrict No. 3
ASSETS
Cash and investment$8,178,381$10,746,426
s
Receivables:
Accounts81,800-
Current taxes108,1662,728
Delinquent taxes401,52527,320
Special assessments--
Due from other government40,992144,810
s
Interfund receivable--
Prepaid items890-
Inventories21,105-
Advances to other funds--
Asset held for resale-11,018,629
Restricted assets:
Cash and investments-performance deposit108,000-
s
Total assets8,940,859 21,939,913
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable254,99311,832
Accrued salaries and wages425,539-
Due to other funds--
Due to other governments6,489-
Contracts payable--
Deposits payable875-
Interfund payable--
Deferred revenue401,52511,045,949
Liabilities payable from restricted assets:
Deposits payable108,000-
Total liabilities1,197,42111,057,781
Fund balances:
Reserved:
Advances to other funds--
Committed contracts--
Debt service--
Inventories21,105-
Prepaid items890-
3,520,235-
Statutory housing obligatio
n
Unreserved:
Designated, reported in:
General Fun -7,721,443
d
Special Revenue Funds- 7,361,897
Capital Project Funds- -
Undesignated, reported in:
Special Revenue Funds--
Capital Project Funds--
Total fund balances7,743,43810,882,132
Total liabilities and fund balances$8,940,859$21,939,913
The accompanying notes are an integral part of these financial statements.
26
Statement 3
Page 1 of 2
Othe
r
G.O. ImprovemenInfrastructureonmajoTotal
tNr
BondsConstructioGovernmentaGovernmenta
nll
$ 2,807,597$82,119$9,967,528$31,782,051
-6,418159,196247,414
116-33,334144,344
16,036-64,761509,642
4,050,704125,725-4,176,429
--683,452869,254
--11,11511,115
--7,7548,644
---21,105
--792,488792,488
--787,00011,805,629
---108,000
6,874,453214,26212,506,62850,476,115
29,3249,51371,774377,436
--13,020438,559
--135,000135,000
---6,489
-359,167-359,167
---875
--11,11511,115
4,052,043122,564869,66316,491,744
---108,000
4,081,367491,2441,100,57217,928,385
--792,488792,488
-426,12563,803489,928
2,793,086-2,394,1775,187,263
---21,105
--7,7548,644
---3,520,235
---7,721,443
--3,030,09210,391,989
--4,985,9884,985,988
--131,754131,754
-(703,107)-(703,107)
2,793,086(276,982)11,406,05632,547,730
$ 6,874,453$214,262$12,506,628$50,476,115
27
CITY OF BROOKLYN CENTER, MINNESOTAStatement 3
Page 2 of 2
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2008
Fund balance - governmental funds is different from net assets - governmental activities because
:
Total fund balances (Statement 3)$32,547,730
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported in the funds.35,631,036
Other long-term assets are not available to pay for current-period expenditures
and, therefore, are deferred in the funds.16,473,842
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds.(30,040,994)
Internal service funds are used by management to charge the cost of certain
activities to individual funds. The assets and liabilities
are included in the governmental statement of net assets.9,353,499
et assets of governmental activities (Statement 1)$63,965,113
N
28
29
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2008
Tax Incremen
t
GeneralDistrict No. 3
REVENUES
Property taxes$11,375,539$-
Tax increments-1,906,053
Franchise fees--
Lodging taxes619,962-
Special assessments--
Licenses and permits643,736-
Intergovernmenta 115,0461,112,272
l
Charges for services749,001-
Fines and forfeits302,986-
Investment earnings (net of market value adjustment149,484272,709
)
Miscellaneous74,16412,500
Total revenues15,027,1442,306,308
EXPENDITURES
Current:
General governmen -3,308,211
t
Public safet -7,763,370
y
Public works1,969,958-
Community service72,893-
s
Parks and recreation2,311,735-
Economic developmen296,3327,051,514
t
ondepartmental301,396-
N
Administrative services reimbursemen(802,775)-
t
Capital outlay:
General governmen --
t
Public works--
Parks and recreation--
Economic developmen 45,171-
t
Debt service:
Principal retirement--
Interest--
Fiscal agent fees--
Bond issuance costs-33,818
Total expenditures15,221,1207,130,503
Revenues over (under) expenditures(193,976)(4,824,195)
OTHER FINANCING SOURCES (USES)
Issuance of debt-4,335,000
Discount on issuance of deb (28,178)-
t
Premium on issuance of deb --
t
Transfers in--
Transfers out(5,000)(1,243,183)
Total other financing sources (uses)(5,000)3,063,639
et increase (decrease) in fund balances(198,976)(1,760,556)
N
Fund balances - January 17,942,41412,642,688
Fund balances - December 31$7,743,438$10,882,132
The accompanying notes are an integral part of these financial statements.
30
Statement 4
Othe
r
G.O. ImprovemenInfrastructureonmajoTotal
tNr
BondsConstructioGovernmentaGovernmenta
nll
$ -606$$1,027,769$12,403,914
--988,5422,894,595
--643,934643,934
---619,962
816,192472,956-1,289,148
---643,736
--984,2422,211,560
--12,403761,404
---302,986
61,133-250,551733,877
-42,159320,238449,061
877,931515,1154,227,67922,954,177
--266,9363,575,147
--285,1598,048,529
-55,754114,1522,139,864
---72,893
--97,5562,409,291
--318,4737,666,319
---301,396
---(802,775)
--362,442362,442
-2,617,1441,337,9973,955,141
--168,249168,249
---45,171
980,000-1,904,9532,884,953
145,121-915,0441,060,165
8,987-2,25211,239
28,574--62,392
1,162,6822,672,8985,773,21331,960,416
(284,751)(2,157,783)(1,545,534)(9,006,239)
50,0682,339,932-6,725,000
---(28,178)
1,384--1,384
-831,2971,138,2361,969,533
--(301,175)(1,549,358)
51,4523,171,229837,0617,118,381
(233,299)1,013,446(708,473)(1,887,858)
3,026,385(1,290,428)12,114,52934,435,588
$ 2,793,086$(276,982)$11,406,056$32,547,730
31
32
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 5
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESM AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2008
Amounts reported for governmental activities in the statement of activities are different because:
et changes in fund balances - total governmental funds (Statement 4$(1,887,858)
N)
Governmental funds report capital outlays as expenditures. However, in the statement o
f
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlays exceeded depreciation
in the current period.865,383
Revenues in the statement of activities that do not provide current financial resources are no
t
reported as revenues in the funds.5,148,523
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consume
s
the current financial resources of governmental funds. Neither transaction, however, ha
s
any effect on net assets. This amount is the net effect of these differences in the treatmen
t
of long-term debt and related items.(4,115,000)
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.(242,568)
Accrued interest reported in the statement of activities does not require the use of current financial
resources and, therefore, is not reported as expenditures in governmental funds.(54,308)
Change in net assets of governmental activities (Statement 2$(285,828)
)
The accompanying notes are an integral part of these financial statements.
33
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
December 31, 2008
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
ASSETS
Current assets:
Cash and cash equivalents$1,318,525$ 8,645$1,153,340
Receivables:
Accounts - ne -7,780 262,111
t
Special assessments- --
Due from other funds135,000 --
Interfund receivable- --
Prepaid items22,906 -4,987
Inventories594,385 1,99731,231
Total current assets2,078,596 10,6421,451,669
oncurrent assets:
N
Capital assets:
Lan 1,390,402- 1,493,300
d
Land improvement 65,637- 327,830
s
Buildings and structures192,771 487,94611,267,201
Machinery and equipmen 11,160111,167 293,878
t
Street lights- --
Mains and lines- --
Construction in progress- --
Total capital assets303,938 1,955,14513,382,209
Less: Allowance for depreciatio (294,288)(255,732) (6,892,515)
n
et capital assets 1,660,85748,206 6,489,694
N
Total assets2,126,802 1,671,4997,941,363
LIABILITIES
Current liabilities:
Accounts payable118,122 2,29567,418
Accrued salaries payable18,888 2,01125,535
Due to other governments50,074 2914,631
Interfund payable- --
Contracts payable- -147,338
Deposits payable- -230,254
Unearned revenue514 -1,600
Advances from other funds- 792,488-
Compensated absences payable-curren -- -
t
Total current liabilities187,598 796,823486,776
oncurrent liabilities:
N
Compensated absences payable-long-ter -- -
m
et OPEB obligation- --
N
Total noncurrent liabilities- --
Total liabilities187,598 796,823486,776
NET ASSETS
Invested in capital assets48,206 1,660,8576,489,694
Unrestricted1,890,998 (786,181)964,893
Total net assets$1,939,204$ 874,676$7,454,587
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
et assets of business-type activitie
Ns
The accompanying notes are an integral part of these financial statements.
34
Statement 6
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
WaterSanitary SeweStorm DrainageonmajoTotalInternalTotal
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 2,191,3022,068,255$ 1,929,535$ $72,996$8,742,598$ 6,602,655$15,345,253
493,372 819,675 364,834112,0432,059,815 14,7942,074,609
560,178 1,823 231 562,232- 562,232-
- -- 135,000- 135,000-
- - 4,354-4,354 -4,354
500 163,727- 192,120- 192,120-
7,031 -- 634,644- 25,344659,988
3,129,336 3,176,527 2,298,954185,03912,330,763 6,642,79318,973,556
20,734 3,389 287,158 3,194,983- 3,194,983-
- -- 393,467- 166,108559,575
3,033,212 2,705,423- 17,686,553- 17,686,553-
128,668 179,130- 724,003- 7,388,7318,112,734
- --83,54083,540 -83,540
16,511,055 14,669,683 20,745,425 51,926,163- 51,926,163-
739,522 1,183,531 919,394329,5773,172,024 3,172,024-
20,433,191 18,741,156 21,951,977413,11777,180,733 7,554,83984,735,572
(11,673,803) (9,144,934) (6,347,101) (34,608,373)- (3,799,654)(38,408,027)
8,759,388 9,596,222 15,604,876413,11742,572,360 3,755,18546,327,545
11,888,724 12,772,749 17,903,830598,15654,903,123 10,397,97865,301,101
14,794 4,796 1,66414,520223,609 30,772254,381
13,574 4,472 2,049-66,529 9,34975,878
2,316 ---67,050 -67,050
- --4,3544,354 -4,354
- -- 147,338- 147,338-
2,100 -- 232,354- 232,354-
109,368-- 111,482- 111,482-
- -- 792,488- 792,488-
- ---- 107,595107,595
142,152 9,268 3,71318,8741,645,204 147,7161,792,920
-----968,358968,358
- ---- 147,045147,045
- --- 1,115,403- 1,115,403
142,152 9,268 3,71318,8741,645,204 1,263,1192,908,323
8,759,388 9,596,222 15,604,876413,11742,572,360 3,755,18546,327,545
2,987,184 3,167,259 2,295,241166,16510,685,559 5,379,67416,065,233
$ 11,746,572$ 12,763,481$ 17,900,117$579,28253,257,919$ 9,134,859$62,392,778
(218,640)
$53,039,279
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2008
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
OPERATING REVENUES
Sales and user fees$5,484,529$ 253,824$3,831,972
Cost of sales3,997,698 -1,875,280
Total operating revenues1,486,831 253,8241,956,692
OPERATING EXPENSES
Personal services597,687 146,453894,062
Supplies23,836 20,606123,906
Other services176,419 80,488526,185
Insurance11,514 6,05651,588
Utilities41,030 20,293221,067
Ren -243,925 -
t
Depreciation26,431 27,244579,118
Total operating expenses1,120,842 301,1402,395,926
Operating income (loss)365,989 (47,316)(439,234)
NONOPERATING REVENUES (EXPENSES)
Intergovernmenta -- -
l
Investment earning 87033,918 31,443
s
Special assessments- --
Gain (loss) on sale of capital asset- --
Other revenue5,813 -2,936
Total nonoperating revenues (expenses)39,731 87034,379
Income (loss) before contributions and transfers405,720 (46,446)(404,855)
Capital contributions- -326,415
Transfers out(135,000) -(235,000)
Change in net assets270,720 (46,446)(313,440)
et assets - January 1, as previously reported1,668,484 921,1227,768,027
N
Change in accounting principle- --
et assets - January 11,668,484 7,768,027921,122
N
et assets - December 31$1,939,204$ 7,454,587874,676$
N
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities (Statement 2)
The accompanying notes are an integral part of these financial statements.
36
Statement 7
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
WaterSanitary SeweStorm DrainageonmajoTotalInternalTotal
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 1,967,534$ 3,264,115$ 1,553,036$510,034$16,865,044$ 1,490,179$18,355,223
- -- 5,872,978- 5,872,978-
1,967,534 3,264,115 1,553,036510,03410,992,066 1,490,17912,482,245
449,506 175,905 79,710 2,343,323- 729,6553,072,978
138,465 18,691 13,1741,004339,682 486,940826,622
407,076 2,218,759 296,203285,5323,990,662 152,8764,143,538
12,598 5,202 2,6182,74392,319 53,120145,439
157,055 35,093 159,106-633,644 1,879635,523
- -- 243,925- 243,925-
611,328 553,549 763,536 2,561,206- 631,2503,192,456
1,776,028 3,007,199 1,155,241448,38510,204,761 2,055,72012,260,481
191,506 256,916 397,79561,649787,305 (565,541)221,764
- ---- 10,77010,770
52,847 71,524 48,6794,041243,322 170,062413,384
33,939 147--34,086 -34,086
- ---- 73,03673,036
2,160 387 200-11,496 26,80638,302
88,946 72,05848,8794,041288,904280,674569,578
280,452 328,974 446,67465,6901,076,209 (284,867)791,342
- 1,457,408- 329,5772,113,400 2,113,400-
- --(50,175)(420,175) (420,175)-
280,452 328,974 1,904,082345,0922,769,434 (284,867)2,484,567
11,466,120 12,434,507 15,996,035234,19050,488,485 6,902,34457,390,829
- --- 2,517,382- 2,517,382
11,466,120 12,434,507 15,996,035234,19050,488,485 9,419,72659,908,211
$ 11,746,572$ 12,763,481$ 17,900,117$579,282$53,257,919$ 9,134,859$62,392,778
(42,299)
$2,727,135
37
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2008
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users$ 253,8245,486,174$ 3,886,705$
Receipts from interfund services provided---
Payments to suppliers(4,545,575) (125,711)(2,798,310)
Payments to employee(591,270) (145,929)(885,464)
s
Miscellaneous revenue5,813-2,936
et cash flows provided (used) by operating activities355,142 (17,816)205,867
N
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers out(135,000) (235,000)-
Special assessments---
Interfund receivable(135,000)--
Interfund payable---
et cash flows provided (used) by noncapital financing activities(270,000) (235,000)-
N
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (25,379)- -
Proceeds from sale of assets---
et cash flows provided (used) by capital and related financing activities (25,379)- -
N
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments33,918 87031,443
et increase (decrease) in cash and cash equivalents119,060 (42,325)2,310
N
Cash and cash equivalents - January 11,199,465 50,9701,151,030
Cash and cash equivalents - December 31$1,318,525$ 8,645$1,153,340
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) $365,989$ (47,316)$(439,234)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation26,431 27,244579,118
Changes in assets and liabilities:
(Increase) decrease in receivables1,577 44,719-
(Increase) decrease in inventories(85,935) 590(411)
(Increase) decrease in prepaid expenses(918)-(319)
Increase (decrease) in payables35,700 1,14210,460
Increase (decrease) in accrued expenses6,417 5248,598
Increase (decrease) in deferred revenue68--
Other nonoperating income5,813-2,936
Total adjustments(10,847) 29,500645,101
et cash flows provided (used) by operating activities$355,142$ (17,816)$205,867
N
Noncash financing activities:
Capital contributions$-$ 326,416-$
Gain on sale of assets---
The accompanying notes are an integral part of these financial statements.
38
Statement 8
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
WaterSanitary SeweStorm DrainageonmajoTotalInternalTotal
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 1,916,264$ 3,215,858$ 1,520,286$507,274$16,786,385$ 16,786,385-$
- --- 1,483,757- 1,483,757
(733,770) (2,290,761) (313,800)(463,817)(11,271,744) (729,448)(12,001,192)
(445,524) (174,365) (79,210) (2,321,762)- (526,834)(2,848,596)
2,160 387 200-11,496 37,57649,072
739,130 751,119 1,127,47643,4573,204,375 265,0513,469,426
- --(50,175)(420,175) (420,175)-
(67,106) 407--(66,699) (66,699)-
- - (4,354) (139,354)- (139,354)-
- --4,3544,354 -4,354
(67,106) 407 (4,354)(45,821)(621,874) (621,874)-
(725,404) (1,095,864) (623,086)(83,540)(2,553,273) (792,282)(3,345,555)
- ---- 123,528123,528
(725,404) (1,095,864) (623,086)(83,540)(2,553,273) (668,754)(3,222,027)
52,847 71,524 48,6794,041243,322 170,062413,384
(533) (272,814) 548,715(81,863)272,550 (233,641)38,909
2,068,788 2,464,116 1,380,820154,8598,470,048 6,836,29615,306,344
$2,068,255$2,191,302$ 1,929,535$72,996$8,742,598$ 6,602,655$15,345,253
$ 191,506$ 256,916$ 397,795$61,649$787,305$ (565,541)$221,764
611,328 553,549 763,536 2,561,206- 631,2503,192,456
(33,078) (48,257) (32,750)(2,760)(70,549) (6,333)(76,882)
9,039 ---(76,717) 7,700(69,017)
- (8,955)--(10,192) (10,192)-
(26,215) (4,061) (1,805)(15,432)(211) (42,333)(42,544)
3,982 1,540 500-21,561 202,732224,293
(19,592)---(19,524) (19,524)-
2,160 387 200-11,496 37,57649,072
547,624 494,203 729,681(18,192)2,417,070 830,5923,247,662
$ 739,130$ 751,119$ 1,127,476$43,457$3,204,375$ 265,051$3,469,426
$ -$ 1,457,408-$$329,577$-
- --- 73,036
39
40
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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 also applies Financial Accounting Standards Board (FASB)
statements and interpretations issued prior to December 1, 1989 to its governmental and business-type activities
at the government-wide financial reporting level and to its proprietary funds at the fund reporting level,
provided they do not conflict with or contradict GASB pronouncements.
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. 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. 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 in the Economic Development Authority, Earle Brown TIF District, TIF District No. 3,
TIF District No. 4, and the Community Development Block Grant Special Revenue Funds; the Tax
Increment Bonds Debt Service Fund; the Earle Brown Heritage Center Improvements Capital Project Fund;
and the Earle Brown Heritage Center Enterprise Fund. The EDA does not issue separate financial
statements. Financial information may be obtained at the City’s offices.
41
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in
net assets) 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.
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
government considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal period. 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, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period 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.
42
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
(Continued)
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Tax Increment District No. 3 Special Revenue Fund has the authority to collect tax increments
which are used for various redevelopment projects within the City and for debt service payments of
bonds which were issued for the same purpose.
TheG. O. Improvement Bonds Debt Service Fund is used to account for the accumulation of resources
for the payment of improvement bonds. These bonds were sold to finance certain public
improvements such as residential streets and storm sewers or the provision of services which are to be
paid for wholly or in part from special assessments levied against benefited property.
TheInfrastructure Construction Capital Project 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.
The government reports the following major enterprise funds:
TheMunicipal Liquor Fund accounts for the operations of the City’s municipal off-sale liquor stores.
TheGolf Course Fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf
course owned by the City.
TheEarle Brown Heritage Center Fund accounts for the operation of a convention center. 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.
TheWater Utility Fund accounts for the pumping, treatment and distribution of water to customers.
Administration, wells, water storage, and distribution are included.
The Sanitary Sewer Utility 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 64% of this fund’s expenses.
TheStorm Drainage Utility 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.
43
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
(Continued)
Additionally, the government reports the following fund type:
Internal Service Funds account for compensated absences, health care insurance benefits and central
garage services provided to other departments of the City on a cost reimbursement basis.
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.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating 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.
44
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. CASH AND INVESTMENTS
(Continued)
The City’s investment policy authorizes the City to invest in the following:
a) Securities that are direct obligations or are guaranteed or insured issues of the United States, its
agencies, its instrumentalities, or organizations created by an act of congress, including
governmental bills, notes, bonds and other securities.
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 270 days or less.
c) Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers
acceptances of U.S. banks.
d) Repurchase agreements and reverse repurchase agreements with financial institutions identified by
Minnesota Statutes Chapter 118A.
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.
Investments are reported at fair value, based on quoted market prices as of the balance sheet date.
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 “interfund receivable/payable.” All short-
term interfund receivables and payables at December 31, 2008 are planned to be eliminated in 2009. 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 a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable financial resources.
The City expects to make full collection of all trade and property tax receivables, so no allowance is
considered necessary.
45
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
E. RECEIVABLES AND PAYABLES
(Continued)
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 deferred revenue 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.
G. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the government 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 fair market 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
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. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed. For the year ended December 31, 2008 no interest was
capitalized in connection with construction in progress.
46
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
G. CAPITAL ASSETS
(Continued)
Capital assets of the City, as well as the component units, are depreciated using the straight line method
over the following estimated useful lives:
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 and traffic light systems 15 years
Machinery and equipment 5-15 years
H. 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 Employee Compensated Absences fund. A
liability for these amounts is reported in governmental funds only if they have matured, for example, as a
result of employee resignations and retirements. 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, or expected to vest, as severance pay.
I. 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 assets. Bond premiums and
discounts, as well as issuance costs, are immaterial and are expensed in the year of bond issuance.
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.
J. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net
assets for proprietary funds. Fund equity in the government-wide financial statements is classified as net
assets for both governmental and business-type activities.
Fund balance
– Generally, fund balance represents the difference between current assets and current
liabilities. The City reserves those portions of fund balance which are legally segregated for a specific
future use or which do not represent available, spendable resources and are therefore not available for
general appropriation or expenditure. Unreserved fund balance indicates that portion of fund balance that
is available for appropriation in future periods. Designations are management’s intent to set aside these
resources for specific purposes.
47
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
J. FUND EQUITY
(Continued)
Net assets
– Net assets represent the difference between assets and liabilities. Net assets, invested in capital
assets net of related debt, 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 assets are 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 other net assets are reported as unrestricted.
When both restricted and unrestricted resources are available for an allowable use, it is the government’s
policy to use restricted resources first, then unrestricted resources as they are needed.
K. 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.
L. 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.
M. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) recently approved the following statements which
were not implemented in these financial statements. The effect of these standards may have on future
financial statements has not been determined at this time.
Statement No. 51, Accounts and Financial Reporting for Intangible Assets. This statement establishes
accounting and financial reporting requirements for intangible assets including easements, water rights,
timber rights, patents, trademarks and computer software. The provisions of this statement are effective for
financial statements for periods beginning after June 15, 2009.
48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances – total governmental funds and changes in net assets
of governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that “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 and reported as
depreciation expense.” The details of this $ 865,383 difference are as follows:
Another element of that reconciliation states that “Revenues in the Statement of Activities that do not
provide current financial resources are not reported as revenues in the funds.” The details of this
$ 5,148,523 difference are as follows:
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
ANT THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
(Continued)
Another element of that reconciliation states that “The issuance of long-term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of principal of the long-
term debt consumes the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets.” The details of this $ 4,115,000 difference are as follows:
Note 3 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, except for the Capital Reserve Emergency Fund. All annual
appropriations lapse at fiscal year end.
In August, 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 15. 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
material supplemental budgetary appropriations during the year.
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
(Continued)
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2008 expenditures exceeded appropriations in the following General
Fund departments and special revenue funds:
C. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2008 in the following funds:
The deficits are being funded through internal borrowing and will be repaid from construction transfers
from utility funds, future bond issuance, investment earnings, and internal transfers.
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
(Continued)
D. CHANGES IN ACCOUNTING PRINCIPLE
FUND AND GOVERNMENT-WIDE STATEMENTS
In 2008, the City prospectively implemented the requirements of a new accounting pronouncement, GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions. Prior to 2008, the City reported a liability for other postemployment benefits other than
pensions (OPEB) based on the City’s best estimate of the future liability. At December 31, 2007, that
liability was $ 2,517,382. Under GASB Statement No. 45, the only liability reported is the Net Pension
Obligation, which is the difference between the annual required contribution as actuarially determined and
the City’s actual contribution (see Note 5.C.). The accrued health insurance liability was decreased and the
beginning net assets were increased by $ 2,517,382.
E. PRIOR PERIOD ADJUSTMENTS
GOVERNMENT-WIDE STATEMENTS
In 2008, land held for resale was removed from the capital assets in the Governmental Activities. A
portion of the land was sold and the remaining portion was added as land held for resale in the
Governmental Activities column on the Statement of Net Assets. Beginning Net Assets was decreased by
the value of the land removed from capital assets, $ 1,077,766. Beginning Net Assets was increased by the
value of the land that was reclassified as land held for resale, $ 750,000.
In 2008, a thorough inventory of land owned by the City and its blended component units revealed several
parcels not included in the capital assets in the Governmental Activities. Beginning net assets in the
Governmental Activities was increased by $ 2,481,992, the total purchase price for all parcels. In addition,
several capital assets were reclassified from Land to Land improvements. Beginning Net Assets was
reduced by the accumulated depreciation of $ 1,000,929.
The net effect of the change in accounting principle and prior period adjustments is summarized below:
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 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
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Authorized collateral includes the legal investments described below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that
furnishing the collateral.
At year-end, the City’s carrying value amount of deposits was $ 354,920 composed of bank balances of
$ 506,050. All balances were covered by federal depository insurance or by perfected collateral held by the
Federal Reserve Bank.
As of December 31, 2008 the City had the following investments and maturities:
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
(Continued)
Interest rate risk – The City’s investment policy requires interest earnings remain stable and predictable
through at least the next budget cycle and that at least 50% of the investment portfolio remain for two or
more years with known interest rates. 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. 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. As of December 31, 2008 the City’s investment in FHLB, FNMA and FHLMC
notes were all rated AAA by Moody’s Investor Service. The City’s external investment pool is with 4M
which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities.
The 4M fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the
value of the pool shares.
– The City’s investment policy requires that the investment portfolio be
Concentration of credit risk
diversified to minimize potential losses on individual securities.
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. All of the City’s investments
were held in an institutional trust under contract with the City for safekeeping services.
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2008 are as
follows:
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end of
the current fiscal year, the various components of deferred revenue and unearned revenue reported in the
governmental funds were as follows:
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
B. RECEIVABLES
(Continued)
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 six
years, commencing on August 1, 2005, and calls for monthly lease payments based on the square-footage.
Lease revenue for the year ended December 31, 2008 was $ 9,302. Future minimum lease payments are as
$ 9,091 annually through 2010 and $ 5,303 for 2011.
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2008 was as follows:
During 2008, assets valued at $1,224,308 were transferred from Governmental Activities construction in
progress to Business-Type activities mains and lines.
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
C. CAPITAL ASSETS
(Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
C. CAPITAL ASSETS
(Continued)
CONSTRUCTION COMMITMENTS
At December 31, 2008 the City had construction project contracts in progress. The commitments related to
remaining contract balances are summarized as follows:
D. INTERFUND BALANCES AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2008 are as follows:
Due fromDue to
FundOther FundsOther Funds
Major Funds:
Municipal Liquor$ 135,000$ -
Nonmajor Funds:
Capital Improvements - 135,000
Total$ 135,000$ 135,000
The $135,000 between the Municipal Liquor and Capital Improvement Funds is expected to be eliminated
within one year of December 31, 2008.
Advances to Advances From
FundOther FundsOther Funds
Major Funds:
Golf Course$ -$ 792,488
Nonmajor Funds:
Capital Improvements 792,488 -
$ 792,488$ 792,488
The $792,488 advance between the Golf Course and Capital Improvements funds is not expected to be
eliminated within one year of December 31, 2008.
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS
(Continued)
Interfund payables/receivables are representative of lending/borrowing arrangements to cover deficit cash
balances at the end of the fiscal year. Balance will be paid with transfers from other funds, collections of
outstanding receivables, and the issuance of bonds to finance completed infrastructure projects.
Interfund transfers:
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS
(Continued)
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 2008, the transfer from the General Fund to the City Initiatives Grant Fund
is to provide the funding authorized by the City Council for the Centennial Celebration to be held in 2011.
Transfers from the Tax Increment District No. 3 fund to the Tax Increment Bonds fund were made to pay
the 2008 debt service requirements for the bonds. The transfer from the Street Light Utility fund to the
Infrastructure Construction Fund was used to fund certain street construction projects.
E. OPERATING LEASES
The City leases space for its municipal liquor stores. The leases are both ten-year leases and began in 2000
and 2003. Both leases have options for a ten-year extension. The leases provide 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. These leases 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, 2008 was $ 243,925. Future minimum base rent payments under the current agreements are
as follows:
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
(Continued)
F. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the construction of major capital facilities,
construction of infrastructure, and economic development and redevelopment. General obligation bonds
have been issued for governmental activities.
As of December 31, 2008 the long-term debt of the financial reporting entity consisted of the following:
GOVERNMENTAL ACTIVITIES
All long-term bonded indebtedness outstanding at December 31, 2008 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 tax
increments 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. Delinquent tax increments in the
governmental funds at December 31, 2008 were $ 27,320; delinquent special assessments in the
governmental funds at December 31, 2008 were $ 56,064, which is included in the special assessments
receivable balance of $ 4,176,429.
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG-TERM DEBT
GOVERNMENTAL ACTIVITIES (Continued)
The G.O. Improvement Bonds were issued to finance the construction and replacement of street and storm
drainage capital assets. Of the $ 5,690,000 outstanding at December 31, 2008 the amounts applicable to
street and storm capital assets is $ 4,687,316 and $ 1,002,684, respectively.
Annual debt service requirements to maturity for long-term debt are as follows:
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2008 was as follows:
Compensated absences are liquidated by the Public Employees Compensated Absences Fund.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG-TERM DEBT
(Continued)
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, 2008 there were three series of fixed rate Multifamily Housing Revenue Refunding
bonds, one Housing Revenue Development Refinancing Note, one series of Variable Rate Demand
Refunding Industrial Revenue Bonds, two Healthcare Revenue Notes, and four Senior Housing
Development Revenue Notes outstanding. The aggregate amount of conduit debt obligations at December
31, 2008 is $ 30,566,244.
G. FUND EQUITY
Net assets reported in the government-wide statement of net assets at December 31, 2008 include the
following:
Related debt for governmental activities capital assets includes $ 3,275,000 in General Obligation Bonds
and $ 4,687,316 in G.O. Improvement Bonds, the amount issued to finance the street portion of
construction projects. The remaining $ 1,002,684 of the G.O. Improvement Bonds outstanding was issued
to finance the storm drainage portion of construction projects.
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY
(Continued)
Governmental fund balances reported on the fund financial statements as of December 31, 2008 include the
following:
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY
(Continued)
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 (WRCA) 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.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three years.
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
(Continued)
B. EMPLOYEE RETIREMENT PLANS
1. DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are
established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member’s highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA,
60 Empire Drive Suite 200, St. Paul, Minnesota, 55103-2088 or by calling 651-296-7460 or 800-652-
9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the state legislature. The City makes annual contributions to the
pension plans equal to the amount required by state statutes. PERF Coordinated Plan members are
required to contribute 6.00% of their annual covered salary. PEPFF members are required to
contribute 8.60% of their annual covered salary. The City is required to contribute the following
percentages of annual covered payroll: 6.50% for Coordinated Plan PERF members and 12.90% for
PEPFF members. The City’s contributions to the Public Employees Retirement Fund for the years
ending December 31, 2008, 2007, and 2006 were $ 428,616, $ 392,528, and $ 363,334, respectively.
The City’s contributions to the Public Employees Police and Fire Fund for the years ending December
31, 2008, 2007, and 2006 were $ 444,527, $ 374,495, and $ 318,913, respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by state statute.
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
(Continued)
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
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.
The Association provides retirement benefits to members and survivors, upon death of eligible
members. Benefits are established by the Association and approved by the City Council under the
applicable statutes. The defined retirement benefits are based on a member’s years of service. Vesting
begins after the 10th year of service with a 60% benefit increasing to 100% after the 20th year of
service.
Full benefits are available after 20 years of service by the member and having attained the age of 50.
The current benefit available is a lump sum distribution of $ 7,500 per year of service. 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 of membership.
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.
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.
CONTRIBUTIONS
Total contributions to the plan in 2007 were $ 139,441 of which all was from the State of Minnesota.
The actuarially determined contribution based on an actuarial valuation performed at January 1, 2007
was $ 59,159, which represents funding for normal cost of $ 98,697 and amortization of the excess
over the actuarial accrued liability of ($ 39,538). Actual contributions have continued at higher levels
to allow for a transition to a defined contribution plan in the future. These higher payments are
irrevocable and do not affect the level of future City contributions, nor do they constitute an asset of
the City.
The City’s $ 139,441 contribution to the Association in 2007 was recorded as intergovernmental
revenue and fire department expenditure in the General Fund.
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
(Continued)
The information below is the most recent data available.
THREE YEAR TREND INFORMATION
SCHEDULE OF FUNDING PROGRESS
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
(Continued)
C. OTHER POST-EMPLOYMENT BENEFITS
In 2008, the City prospectively implemented the requirement of a new accounting pronouncement, GASB
Statement No. 45, Accounting and Financial Reporting by Employer for Postemployment Benefits Other
than Pensions.
PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 5.B., the City provides postemployment
health care benefits for retired employees and police disabled in the line of duty, through a single-employer
defined benefit plan administered by the City. The authority to provide these benefits is established in
Minnesota Statutes Sections 471.61 subd. 2a. and 299A.465. The benefits, benefit levels, employee
contributions and employer contributions are governed by the City and can be amended by the City through
its personnel manual and collective bargaining agreements with employee groups. The Plan is not
accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The
Plan does not issue a separate report.
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 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.
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS
BENEFITS PROVIDED (Continued)
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.
PARTICIPANTS
As of the actuarial valuation dated January 1, 2008, participants consisted of:
FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-go
basis. The City Council may change the funding policy at any time.
ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual other post employment benefit (OPEB) cost is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and amortize any unfunded actuarial obligation (or funding
excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2008 was
calculated as follows:
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS
ANNUAL OPEB COSTS AND NET OPEB OBLIGATION (Continued)
The City first had an actuarial valuation performed for the plan as of January 1, 2008 to determine the
funded status of the plan as of that date as well as the employer’s ARC for the fiscal year ended December
31, 2008. The City’s annual OPEB cost (expense) of $ 314,184 was equal to the ARC for the fiscal year, as
the transition liability was set to zero as of December 31, 2007. The City’s annual OPEB cost, the
percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2008 were as
follows:
FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited into a trust for future benefits;
therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
ACTUARIAL ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the health care cost trend. Amounts determined
regarding the funding status of the plan and the annual required contribution of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multi-year trend information that shows whether the actuarial
value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS
ACTUARIAL ASSUMPTIONS (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the Projected Unit Credit actuarial cost was used. The actuarial
assumptions included a 4.5% investment rate of return (net of administrative expenses) and an initial
annual health care cost trend rate of 10.0% reduced by 0.5% each year to arrive at an ultimate health care
cost trend rate of 5.0%. The actuarial value of assets as $0. The plans’ unfunded actuarial accrued liability
is being amortized using a 5.0% payroll growth rate method over 30 years on a closed basis. The
remaining amortization period at December 31, 2008 was 29 years.
D. 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 2004 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.
E. 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.
F. CONTINGENT LIABILITIES
Tax Increment Notes
In May 2002, the City entered into two limited tax increment notes with developers whereby the City will
pay the developers a percentage of the available tax increment. Whether payments will occur and the
amount of the payments is unpredictable since all payments are dependent on the City receiving tax
increment revenues from the developer’s project. As such, this liability has not been recorded in the
financial statements. Any potential liability ends with the decertification of the tax increment district.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
F. CONTINGENT LIABILITIES
(Continued)
A schedule of the notes outstanding at December 31, 2008 is as follows:
G. 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
2008 financial statements of the City is $ 365,684 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 2008 health and life insurance costs paid by the City was $ 1,183,456.
Complete financial statements may be obtained from Stanton Group located at 3405 Annapolis Lane,
Plymouth, Minnesota 55447.
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.B.2. 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.
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
Note 5 OTHER INFORMATION
(Continued)
H. SUBSEQUENT EVENT
In March 2009, the City purchased the property at 2545 County Road 10 from Jopaul Properties LLC for
$ 677,831 for redevelopment. This property will be recorded in the Tax Increment District No. 3 fund as
Assets held for resale at cost, not to exceed net realizable value, until the property is sold.
73
74
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
REVENUES
Taxes:
Property taxes11,233,679$$11,233,679$ 10,811,528$(422,151)
Market value homestead credit-- 543,128543,128
Penalties and interest-- 20,88320,883
Lodging ta665,000665,000 619,962(45,038)
x
Total taxes11,898,67911,898,679 11,995,50196,822
Licenses and permits:
Liquor and beer licenses83,00083,000 76,370(6,630)
Building permits300,000300,000 211,462(88,538)
Mechanical permits70,00070,000 52,898(17,102)
Sewer and water permits1,0001,000 831(169)
Plumbing permits30,00030,000 45,76615,766
Garbage licenses3,0703,070 3,030(40)
Mechanical licenses3,3003,300 5,9302,630
Service station licenses2,4902,490 2,313(177)
Vehicle dealer licenses1,5001,500 1,250(250)
Bowling licenses720720 720-
Cigarette licenses3,1503,150 3,838688
Sign permits2,5002,500 2,910410
Rental dwelling license175,000175,000 181,5596,559
s
Amusement license 1,0001,000 830 (170)
s
Electrical Permits40,000 40,000 45,306 5,306
ROW permits1,0001,000 4,0803,080
Miscellaneous licenses and permits6,1156,115 4,643(1,472)
Total licenses and permits723,845723,845 643,736(80,109)
Intergovernmental:
Federal:
Other federal grants-- 1,7981,798
State:
Local government ai 1,113,2431,113,243 572,708 (540,535)
d
Police pension aid283,000283,000 290,1617,161
PERA aid34,36534,365 34,365-
Fireperson pension aid160,000160,000 117,983(42,017)
Police training-- 16,42216,422
Local:
Miscellaneous grants61,40061,400 78,83517,435
Total intergovernmental1,652,0081,652,008 1,112,272(539,736)
Charges for services:
General government charges33,12533,125 27,964(5,161)
Public safety charges15,60015,600 42,07026,470
Community development fee -- 1,590 1,590
s
Recreation fees306,229 306,229 316,564 10,335
Community Center fee339,150339,150 360,81321,663
s
Total charges for services694,104694,104 749,00154,897
75
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Revenues (continued):
Fines and forfeits248,000$ 248,000$ 302,986$ 54,986$
Miscellaneous:
Investment earnings (net of market value change185,000185,000 149,484(35,516)
)
Othe97,200 74,16497,200 (23,036)
r
Total miscellaneous282,200282,200 223,648(58,552)
Total revenues15,498,83615,498,836 15,027,144(471,692)
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services52,86452,864 48,3124,552
Materials and supplies600600 148452
Services and other charges80,83680,836 77,3743,462
Total mayor and council134,300134,300 125,8348,466
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services617,057617,057 617,686(629)
Materials and supplies3,5003,500 1,3302,170
Services and other charges48,67548,675 39,8618,814
Total administrative office669,232669,232 658,87710,355
Elections and voter registration:
Current:
Personal services61,10761,107 51,8289,279
Materials and supplies3,0003,000 2,608392
Services and other charges35,03635,036 34,872164
Total elections and voter registration99,14399,143 89,3089,835
Assessor's office:
Current:
Personal services258,218258,218 248,9039,315
Materials and supplies5,1755,175 4,738437
Services and other charges43,99543,995 42,1141,881
295,75511,633
Total assessor's office307,388307,388
Finance:
Current:
Personal services446,325446,325 434,96911,356
Materials and supplies4,0504,050 3,465585
Services and other charges12,80012,800 10,0342,766
Total finance463,175463,175 448,46814,707
Legal:
Current:
Services and other charges325,000325,000 461,454(136,454)
76
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures:
General government (continued):
Government buildings:
Current:
Personal services286,514$ 286,514$ 289,388$ (2,874)$
Materials and supplies93,15093,150 89,1034,047
Services and other charges360,521360,521 504,216(143,695)
Total government buildings740,185740,185 882,707(142,522)
Information technology:
Current:
Personal services192,815192,815 194,002(1,187)
Materials and supplies18,00018,000 8,9189,082
Services and other charges162,952162,952 142,88820,064
Total information technolog373,767373,767 345,80827,959
y
Total general governmen 3,112,1903,112,190 3,308,211 (196,021)
t
Public safety:
Police protection:
Current:
Personal services5,172,9405,172,940 5,151,48621,454
Materials and supplies124,094124,094 111,43812,656
Services and other charges875,067875,067 886,424(11,357)
Total police protection6,172,1016,172,101 6,149,34822,753
Fire protection:
Current:
Personal services551,563551,563 514,82536,738
Materials and supplies85,60085,600 66,83918,761
Services and other charges278,312278,312 237,63140,681
Total fire protection915,475915,475 819,29596,180
Protective inspection:
Current:
Personal services594,560594,560 563,52831,032
Materials and supplies4,8004,800 2,8371,963
Services and other charges131,858131,858 141,300(9,442)
Total protective inspection731,218731,218 707,66523,553
Emergency preparedness:
Current:
Personal services58,39058,390 61,490(3,100)
Materials and supplies22,40022,400 21,2531,147
Services and other charges6,2406,240 4,3191,921
Total emergency preparedness87,03087,030 87,062(32)
Total public safety7,905,8247,905,824 7,763,370142,454
77
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures (continued):
Public works:
Engineering department:
Current:
Personal services509,486$ 509,486$ 513,925$ (4,439)$
Materials and supplies6,3406,340 3,5622,778
Services and other charges49,08049,080 53,003(3,923)
Total engineering department564,906564,906 570,490(5,584)
Street department:
Current:
Personal services748,458748,458 740,5287,930
Materials and supplies142,300142,300 136,8895,411
Services and other charges553,560553,560 522,05131,509
Total street department1,444,3181,444,318 1,399,46844,850
Total public works2,009,2242,009,224 1,969,95839,266
Community services:
Social services:
Current:
Services and other charges73,01973,019 72,893126
Civic events:
Current:
Services and other charges5,0005,000 -5,000
Total community service78,019 72,89378,019 5,126
s
Parks and recreation:
Administration:
Current:
Personal services512,835171,318 165,5385,780
Materials and supplies12,3001,100 925175
Services and other charges67,2105,790 4,816974
Total administration592,345178,208 171,2796,929
Recreation programs:
Current:
Personal services93,628435,145 453,553(18,408)
Materials and supplies23,12834,328 40,974(6,646)
Cost of good sold to public14,04614,046 36,666(22,620)
Services and other charges119,550180,970 190,271(9,301)
Total adult programs250,352664,489 721,464(56,975)
Community center:
Current:
Personal services436,035436,035 432,6093,426
Materials and supplies36,00036,000 19,22716,773
Services and other charges75,75075,750 95,597(19,847)
Total community cente547,785547,785 547,433352
r
78
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 5 of 5
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures:
Parks and recreation (continued):
Park maintenance:
Current:
Personal services558,003$ 558,003$ 531,061$ 26,942$
Materials and supplies76,69076,690 59,13717,553
Services and other charges297,759297,759 281,36116,398
Total park maintenance932,452932,452 871,55960,893
Total parks and recreation2,322,9342,322,934 2,311,73511,199
Economic development:
Convention bureau:
Current:
Services and other charges315,875315,875 296,33219,543
ondepartmental:
N
Expenditures not charged to departments:
Current:
Personal services-- (2,093)2,093
Materials and supplies18,50018,500 20,608(2,108)
Services and other charges446,270446,270 278,695167,575
Total nondepartmental464,770464,770 301,396163,374
Total expenditures16,208,83616,208,836 16,023,895184,941
Revenues over (under) expenditures(710,000)(710,000) (996,751)(286,751)
OTHER FINANCING SOURCES (USES)
Transfers in - administrative services reimburse760,000760,000 802,77542,775
d
Transfers from other funds20,00020,000 -(20,000)
Transfers to other funds(70,000)(70,000) (5,000)65,000
Total other financing sources (uses)710,000710,000 797,77587,775
et increase (decrease) in fund balance$-$ (198,976)- $(198,976)
N
Fund balance - January 1 7,942,414
Fund balance - December 31$ 7,743,438
79
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - TAX INCREMENT DISTRICT NO. 3
For the Year Ended December 31, 2008
Variance wit
h
Final Budget -
Budgeted AmountsPositive
OriginalFinalActual(Negative)
REVENUES
Taxes:
Tax increments1,890,991$$1,890,991$ 1,900,386$9,395
Market value homestead credit-- 5,6675,667
Intergovernmenta -- 115,046 115,046
l
Investment earnings (net of market value adjustment400,000400,000 272,709(127,291)
)
Miscellaneous-- 12,50012,500
Total revenues2,290,9912,290,991 2,306,30815,317
EXPENDITURES
Current:
Economic development:
Personal services-- 33,002(33,002)
Supplies-- 346(346)
Services and other charges284,000284,000 7,018,166(6,734,166)
Capital outlay:
Economic developmen -- 45,171 (45,171)
t
Debt service:
Bond issuance costs- - 33,818 (33,818)
Total expenditures284,000284,000 7,130,503(6,846,503)
Revenues over (under) expenditures2,006,9912,006,991 (4,824,195)(6,831,186)
OTHER FINANCING SOURCES (USES)
Issuance of debt- 4,335,000- 4,335,000
Discount on issuance of deb -- (28,178) (28,178)
t
Transfers out(1,834,491) (1,834,491) (1,243,183) 591,308
Total other financing sources (uses)(1,834,491)(1,834,491) 3,063,6394,898,130
et increase (decrease) in fund balance$172,500$172,500 (1,760,556)$(1,933,056)
N
Fund balance - January 1 12,642,688
Fund balance - December 31$ 10,882,132
80
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 11
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS
For the Year Ended December 31, 2008
Unfunde
d
ActuarialActuarialActuarialActuarialUAAL as
a
ValuationValue ofAccrueAccrueFundeCoveredPercentage of
ddd
DateAssetsLiability (AALLiability (UAAL)RatioPayrollCovered Payroll
)
$ $3,996,1360.00%8,882,315$ 44.99%
January 1, 2008$ -3,996,136
Percentage
Annuaof Annua
ll
Fiscal YearOPEBEmployeOPEB Costet OPEB
rN
EndedCosContributionContributedObligation
t
December 31, 2008314,184$ $ 167,13953.20%$147,045
The City implemented GASB Statement No. 45 for the year ended December 31, 2008.
nformation for prior years is not available.
I
81
CITY OF BROOKLYN CENTER, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2008
Note A LEGAL COMPLIANCE – BUDGET
The General Fund and Tax Increment District No. 3 Special Revenue Fund budgets are legally adopted on a
basis consistent with accounting principles generally accepted in the United States of America. The legal level
of budgetary control is the department level for the General Fund and the fund level for all other governmental
funds. The following General Fund departments and major special revenue funds had expenditures in excess of
budgeted appropriations:
82
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources
that are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and
payment of, interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
83
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 12
COMBINING BALANCE SHEET
ONMAJOR GOVERNMENTAL FUNDS
N
December 31, 2008
Total
SpecialDebtCapitalonmajo
Nr
RevenueServiceProjectGovernmenta
l
ASSETS
Cash and investment$ 2,385,4223,098,821$ 4,483,285$ 9,967,528$
s
Receivables:
Accounts-- 159,196159,196
Current taxes24,5798,755 -33,334
Delinquent taxes17,25447,507 -64,761
Due from other government72,079- 611,373683,452
s
Interfund receivable11,115- -11,115
Prepaid items7,754- -7,754
Advances to other funds-- 792,488792,488
Assets held for resale787,000- 787,000-
Total assets4,018,6022,441,684 6,046,34212,506,628
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable2,711- 69,06371,774
Accrued salaries and wages13,020- -13,020
Due to other funds-- 135,000135,000
Interfund payable11,115- -11,115
Deferred revenue822,15647,507 869,663-
Total liabilities849,00247,507 204,0631,100,572
Fund balances:
Reserve 2,394,1777,754 856,291 3,258,222
d
Unreserved:
Designate -3,030,092 4,985,988 8,016,080
d
Undesignate -131,754 - 131,754
d
Total fund balances3,169,6002,394,177 5,842,27911,406,056
Total liabilities and fund balances$4,018,602$2,441,684$ 6,046,342$12,506,628
84
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 13
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR GOVERNMENTAL FUNDS
N
For the Year Ended December 31, 2008
Total
SpecialDebtCapitalonmajo
Nr
RevenueServiceProjectGovernmenta
l
REVENUES
Property taxes$ 727,482300,287$ -$ 1,027,769$
Tax increments988,542- 988,542-
Franchise fees-- 643,934643,934
Intergovernmenta -282,869 701,373 984,242
l
Charges for services12,403- -12,403
Investment earnings (net of market value adjustment61,57253,815 135,164250,551
)
Miscellaneous93,236- 227,002320,238
Total revenues1,738,909781,297 1,707,4734,227,679
EXPENDITURES
Current:
General governmen-- 266,936266,936
t
Public safet -285,159 - 285,159
y
Public works2,575- 111,577114,152
Parks and recreation42,480- 55,07697,556
Economic developmen -318,473 - 318,473
t
Capital outlay:
General governmen-- 362,442362,442
t
Public works- 1,337,997- 1,337,997
Parks and recreation-- 168,249168,249
Debt service:
Principal retirement274,9531,630,000 1,904,953-
Interest-915,044 915,044-
Fiscal agent fees-2,252 -2,252
Total expenditures923,6402,547,296 2,302,2775,773,213
Revenues over (under) expenditures815,269(1,765,999) (594,804)(1,545,534)
OTHER FINANCING SOURCES (USES)
Transfers in306,175462,061 370,0001,138,236
Transfers out(301,175)- (301,175)-
Total other financing sources (uses)5,000462,061 370,000837,061
et increase (decrease) in fund balances820,269(1,303,938) (224,804)(708,473)
N
Fund balances - January 12,349,3313,698,115 6,067,08312,114,529
Fund balances - December 31$3,169,600$2,394,177$ 5,842,279$11,406,056
85
86
NONMAJOR SPECIAL REVENUE FUNDS
The City of Brooklyn Center had the following Special Revenue Funds during the year:
Housing and Redevelopment Authority Fund (HRA) - This fund has authority to levy an
ad valorem property tax for the purpose of conducting housing and redevelopment
projects. These projects are accounted for in the EDA Fund; all tax proceeds are
transferred to that fund.
Economic Development Authority Fund (EDA) - This fund was established to account
for the Economic Development Authority (EDA) of Brooklyn Center. The EDA carries
out development activities; it has authority to operate an enterprise. The Earle Brown
Heritage Center operates under this authority, as well as the tax increment financing
activities. The EDA also does redevelopment and housing projects, funded by an ad
valorem property tax levy and transfers from the CDBG and HRA funds.
Earle Brown Tax Increment District – This fund has the authority to collect tax
increments which are used for the historic restoration of the Earle Brown Farm and for
debt service payments on bonds which were issued for the same purpose.
Tax Increment District No. 4 Fund – This fund has the authority to collect tax increments
which are used for various redevelopment projects within the City and for debt service
payments of bonds which were issued for the same purpose.
Police Drug Forfeiture Fund - This fund was established to account for property and/or
cash seized by Police Department personnel.
Community Development Block Grant Fund (CDBG) - This fund was established to
account for funds received under Title I of the Housing and Community Development
Act of 1974.
City Initiatives Grant Fund – Revenues and expenditures from grants received from
outside entities are accounted for in this fund. Programs include several federal, state,
and local public safety grants, and state and local recreation grants.
87
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
ONMAJOR SPECIAL REVENUE FUNDS
N
December 31, 2008
Housing anEconomicEarle Brown
d
RedevelopmenDevelopmenTax Incremen
ttt
AuthoritAuthoritDistric
yyt
ASSETS
Cash and investment$-$1,875,128$987,944
s
Receivables:
Current taxes2,718 -21,861
Delinquent taxes17,254 --
Due from other government- --
s
Interfund receivable- 11,115-
Prepaid items- --
Asset held for resale-787,000-
Total assets19,9722,673,2431,009,805
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable- 2,428-
Accrued salaries and wages- 6,325-
Interfund payable- --
Deferred revenue17,254787,000-
Total liabilities17,254795,753-
Fund balances:
Reserved:
Prepaid items- --
Unreserved:
Designated:
Economic developmen 1,877,4902,718 1,009,805
t
Undesignate- --
d
Total fund balances2,7181,877,4901,009,805
Total liabilities and fund balances$19,972$2,673,243$1,009,805
88
Statement 14
Total
TaxPoliceCommunitCitonmajo
yyNr
IncremenDrugDevelopmenInitiativesSpecial
tt
District No. 4ForfeitureBlock GrantGranRevenue
t
$ 140,079$ 24,881$-$ 70,789$3,098,821
- -- -24,579
- -- -17,254
- -11,115 60,96472,079
- -- -11,115
- 7,754- -7,754
- -- -787,000
140,079 32,63511,115131,7534,018,602
- 266- 172,711
- -- 6,69513,020
- -11,115 -11,115
- -- 17,902822,156
- 26611,115 24,614849,002
- 7,754- -7,754
140,079 -- -3,030,092
- 24,615-107,139131,754
140,079 32,369-107,1393,169,600
$140,079$ 32,635$11,115$131,753$4,018,602
89
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR SPECIAL REVENUE FUNDS
N
For the Year Ended December 31, 2008
Housing anEconomicEarle Brown
d
RedevelopmenDevelopmenTax Incremen
ttt
AuthoritAuthoritDistric
yyt
REVENUES
Property taxes$ -300,287$ -$
Tax increments- - 701,339
Intergovernmenta- --
l
Charges for services- --
Investment earnings (net of marke
t
value adjustment)-45,70713,668
Miscellaneous- 11,935-
Total revenues300,287 57,642715,007
EXPENDITURES
Current:
Public safety:
Personal services- --
Supplies- --
Services and other charges- --
Total public safety- --
Public works:
Supplies- --
Parks and recreation:
Personal services- --
Supplies- --
Services and other charges- --
Total parks and recreation- --
Economic development:
Personal services-173,879-
Supplies- 1,734-
Services and other charges-117,1052,900
Total economic development-292,7182,900
Debt service:
Principal- --
Total expenditures-292,7182,900
Revenues over (under) expenditures300,287(235,076)712,107
OTHER FINANCING SOURCES (USES)
Transfers in-299,858-
Transfers out(299,858) (1,317)-
Total other financing sources (uses)(299,858)298,541-
et increase (decrease) in fund balances429 63,465712,107
N
Fund balances - January 12,2891,814,025297,698
Fund balances - December 31$2,718$1,877,490$1,009,805
90
Statement 15
Total
TaxPoliceCommunitCitonmajo
yyNr
IncremenDrugDevelopmenInitiativesSpecial
tt
District No. 4ForfeitureBlock GrantGranRevenue
t
$ -$ -$-$ -$300,287
287,203 -- -988,542
- 85222,230259,787282,869
- -- 12,40312,403
748 199- 1,25061,572
- 38,449- 42,85293,236
287,951 39,50022,230316,2921,738,909
- --240,880240,880
- 5,524- 6,32711,851
- 16,410- 16,01832,428
- 21,934-263,225285,159
- -- 2,5752,575
- -- 6,1166,116
- -- 9,3299,329
- -- 27,03527,035
- -- 42,48042,480
- -- -173,879
- -- -1,734
625 -22,230 -142,860
625 -22,230 -318,473
274,953 -- -274,953
275,578 21,93422,230308,280923,640
12,373 17,566- 8,012815,269
1,317 -- 5,000306,175
- -- -(301,175)
1,317 -- 5,0005,000
13,690 17,566- 13,012820,269
126,389 14,803- 94,1272,349,331
$ 140,079$ 32,369$-$107,139$3,169,600
91
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 16
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Taxes:
Property taxes$ 302,191302,191$ $285,625
Market value homestead credit- -14,662
Total revenues302,191 302,191300,287
OTHER FINANCING SOURCES (USES)
Transfers out(302,191) (302,191)(299,858)
et increase (decrease) in fund balance$-$ -429
N
Fund balance - January 12,289
Fund balance - December 31$2,718
92
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 17
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$65,000$ 65,000$45,707
)
Miscellaneous- -11,935
Total revenues65,000 65,00057,642
EXPENDITURES
Current:
Economic development:
Personal services209,691 209,691173,879
Supplies2,750 2,7501,734
Services and other charges111,703 111,703117,105
Total expenditures324,144 324,144292,718
Revenues over (under) expenditures(259,144) (259,144)(235,076)
OTHER FINANCING SOURCES (USES)
Transfers in302,191 302,191299,858
Transfers out- -(1,317)
Total other financing sources (uses)302,191 302,191298,541
et increase (decrease) in fund balance$43,047$ 43,04763,465
N
Fund balance - January 11,814,025
Fund balance - December 31$1,877,490
93
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 18
SPECIAL REVENUE FUND - EARLE BROWN TAX INCREMENT DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Taxes:
Tax increments$ 624,102624,102$ $701,339
Investment earnings (net of market value adjustment5,000 5,00013,668
)
Total revenue629,102 629,102715,007
EXPENDITURES
Current:
Economic development:
Services and other charges22,000 22,0002,900
et increase (decrease) in fund balance$ 607,102607,102$ 712,107
N
Fund balance - January 1297,698
Fund balance - December 31$1,009,805
94
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 19
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, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Tax increments$271,536$ 271,536$287,203
Investment earnings (net of market value adjustment 300300 748
)
Total revenues271,836 271,836287,951
EXPENDITURES
Current:
Economic development:
Services and other charges- -625
Debt service:
Principal249,813 249,813274,953
Total expenditures249,813 249,813275,578
Revenues over (under) expenditures22,023 22,02312,373
OTHER FINANCING SOURCES (USES)
Transfers in- -1,317
et increase (decrease) in fund balance$22,023$ 22,02313,690
N
Fund balance - January 1126,389
Fund balance - December 31$140,079
95
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 20
SPECIAL REVENUE FUND - POLICE DRUG FORFEITURE
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$ --$ $852
l
Investment earnings (net of market value adjustment1,000 1,000199
)
Miscellaneous28,000 28,00038,449
Total revenues29,000 29,00039,500
EXPENDITURES
Current:
Public safety:
Supplies22,000 22,0005,524
Services and other charges7,000 7,00016,410
Total expenditures29,000 29,00021,934
et increase (decrease) in fund balance$-$ -17,566
N
Fund balance - January 114,803
Fund balance - December 31$32,369
96
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 21
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, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$193,749$ 193,749$22,230
l
EXPENDITURES
Current:
Economic development:
Services and other charges193,749 193,74922,230
et increase (decrease) in fund balance$-$ --
N
Fund balance - January 1-
Fund balance - December 31$-
97
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 22
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$190,250$ 190,250$259,787
l
Charges for services11,578 11,57812,403
Investment earnings (net of market value adjustment -- 1,250
)
Miscellaneous(3,600) (3,600)42,852
Total revenues198,228 198,228316,292
EXPENDITURES
Current:
Public safety:
Personal services246,281 246,281240,880
Supplies- -6,327
Services and other charges- -16,018
Total public safety246,281 246,281263,225
Public works:
Supplies- -2,575
Parks and recreation:
Personal services4,874 4,8746,116
Supplies10,400 10,4009,329
Services and other charges47,720 47,72027,035
Total parks and recreation62,994 62,99442,480
Total expenditures309,275 309,275308,280
Revenues over (under) expenditures(111,047)(111,047)8,012
OTHER FINANCING SOURCES (USES)
Transfers in- -5,000
et increase (decrease) in fund balance$(111,047)$ (111,047)13,012
N
Fund balance - January 194,127
Fund balance - December 31$107,139
98
NONMAJOR DEBT SERVICE FUNDS
The City's Debt Service Funds account for the following types of bonded indebtedness:
General Obligation Bonds Fund – This fund is used to account for the accumulation of
resources for payment of general obligation bonds and interest thereon.
Tax Increment Bonds Fund – This fund is used to account for the payment of tax
increment general obligation bonds and interest thereon. These bonds were sold to
finance the purchase and redevelopment of various redevelopment projects within the
City. Financing for this debt is transferred from the Tax Increment District No. 3 Fund as
needed.
99
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 23
COMBINING BALANCE SHEET
ONMAJOR DEBT SERVICE FUNDS
N
December 31, 2008
Total
GeneralTaxonmajo
Nr
ObligationIncremenDebt
t
BondsBondsService
ASSETS
Cash and investment$ 1,195,9431,189,479$ $2,385,422
s
Receivables:
Current taxes8,755 -8,755
Delinquent taxes47,507 -47,507
Total assets1,245,741 1,195,9432,441,684
LIABILITIES AND FUND BALANCE
Liabilities:
Deferred revenue47,507 -47,507
Fund balances:
Reserved:
Debt service1,198,234 1,195,9432,394,177
Total liabilities and fund balances$1,245,741$ 1,195,943$2,441,684
100
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 24
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR DEBT SERVICE FUNDS
N
For the Year Ended December 31, 2008
Total
GeneralTaxonmajo
Nr
ObligationIncremenDebt
t
BondsBondsService
REVENUES
Property taxes$727,482$ -$727,482
Investment earnings (net of market value adjustment 35,06618,74953,815
)
Total revenues746,231 35,066781,297
EXPENDITURES
Debt service:
Principal600,000 1,030,0001,630,000
Interest110,553 804,491915,044
Fiscal agent fees750 1,5022,252
Total expenditures711,303 1,835,9932,547,296
Revenues over (under) expenditures34,928 (1,800,927)(1,765,999)
OTHER FINANCING SOURCES (USES)
Transfers in- 462,061462,061
et increase (decrease) in fund balances34,928 (1,338,866)(1,303,938)
N
Fund balances - January 11,163,306 2,534,8093,698,115
Fund balances - December 31$1,198,234$ 1,195,943$2,394,177
101
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 25
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Property taxes$-$ -$606
Special assessments988,390 988,390816,192
Investment earnings (net of market value adjustment 77,40077,400 61,133
)
Total revenues1,065,790 1,065,790877,931
EXPENDITURES
Debt service:
Principal980,000 980,000980,000
Interest145,122 145,122145,121
Fiscal agent fees15,850 15,8508,987
Bond issuance fees- -28,574
Total expenditures1,140,972 1,140,9721,162,682
Revenues over (under) expenditures(75,182) (75,182)(284,751)
OTHER FINANCING SOURCES (USES)
Issuance of debt- -50,068
Premium on issuance of deb -- 1,384
t
Total other financing sources (uses)- -51,452
et increase (decrease) in fund balance$(75,182)$ (75,182)(233,299)
N
Fund balance - January 13,026,385
Fund balance - December 31$2,793,086
102
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 26
DEBT SERVICE FUND - GENERAL OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Property taxes$730,152$ 730,152$727,482
Investment earnings (net of market value adjustment 20,00020,000 18,749
)
Total revenues750,152 750,152746,231
EXPENDITURES
Debt service:
Principal600,000 600,000600,000
Interest110,551 110,551110,553
Fiscal agent fees1,500 1,500750
Total expenditures712,051 712,051711,303
et increase (decrease) in fund balance$38,101$ 38,10134,928
N
Fund balance - January 11,163,306
Fund balance - December 31$1,198,234
103
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 27
DEBT SERVICE FUND - TAX INCREMENT BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$ --$ $35,066
)
EXPENDITURES
Debt service:
Principal$1,030,000$ 1,030,000$1,030,000
Interest804,491 804,491804,491
Fiscal agent fees3,000 3,0001,502
Total expenditures1,837,491 1,837,4911,835,993
Revenues over (under) expenditures(1,837,491) (1,837,491)(1,800,927)
OTHER FINANCING SOURCES (USES)
Transfers in1,837,491 1,837,491462,061
et increase (decrease) in fund balance$-$ (1,338,866)-
N
Fund balance - January 12,534,809
Fund balance - December 31$1,195,943
104
NONMAJOR CAPITAL PROJECT FUNDS
The City of Brooklyn Center had the following Capital Project Funds during the year:
Capital Reserve Emergency Fund - This fund was established in 1997 to account for
monies held in reserve for catastrophic losses or unforeseen capital items.
Capital Improvements Fund - This fund was established in 1968 to provide funds, and to
account for the expenditure of such funds, for major capital outlays including, but not
limited to, construction or acquisition of major permanent facilities having a relatively
long life; and/or to reduce debt incurred for capital outlays. The financing sources of the
fund include ad valorem taxation, transfers from other funds, issuance of bonds, federal
and state grants, and investment earnings.
Municipal State Aid Fund - This fund was established to account for the state allotment
of gasoline tax collections used for transportation related construction and maintenance
projects.
Earle Brown Heritage Center Improvements Fund - This fund was established to provide
a stable source of funds to pay for periodic capital improvements needed at the facility.
– This fund accounts for franchise fees collected, which have
Street Reconstruction Fund
been dedicated to the reconstruction of the City’s infrastructure.
Technology Fund - This fund, established in 2003, accounts for funds set aside for
technology improvements or major technology renovations/replacements.
105
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
ONMAJOR CAPITAL PROJECT FUNDS
N
December 31, 2008
Capital
ReserveCapital
EmergencImprovements
y
ASSETS
Cash and investment$1,427,690$591,981
s
Receivables:
Accounts --
Due from other government --
s
Advances to other funds -792,488
Total assets1,427,6901,384,469
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable --
Due to other funds -135,000
Total liabilities -135,000
Fund balances:
Reserved:
Advances to other funds -792,488
Committed contracts --
Unreserved:
Designated for capital improvements1,427,690456,981
Total fund balances1,427,6901,249,469
Total liabilities and fund balances$1,427,690$1,384,469
106
Statement 28
MunicipalEarle BrownTotal
State AiHeritageonmajo
dNr
foCenteStreetCapital
rr
ConstructioImprovementsReconstructioTechnologyProjects
nn
$ 184,281$ 466,299$1,398,617$414,417$4,483,285
- -159,196 -159,196
611,373 -- -611,373
- -- -792,488
795,654 466,2991,557,813414,4176,046,342
724 53,464- 14,87569,063
- -- -135,000
724 53,464- 14,875204,063
- -- -792,488
- -- 63,80363,803
794,930 412,8351,557,813335,7394,985,988
794,930 412,8351,557,813399,5425,842,279
$ 795,654$ 466,299$1,557,813$414,417$6,046,342
107
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR CAPITAL PROJECT FUNDS
N
For the Year Ended December 31, 2008
Capital
ReserveCapital
EmergencImprovements
y
REVENUES
Franchise fees$ -$-
Intergovernmenta--
l
Investment earnings (net of market value adjustment 36,01414,077
)
Miscellaneous 33,24938,420
Total revenues 69,26352,497
EXPENDITURES
Current:
General government:
Supplies --
Services and other charges -86,576
Total general governmen -86,576
t
Public works:
Supplies --
Services and other charges 21,42723,903
Total public works 21,42723,903
Parks and recreation:
Services and other charges -55,076
Capital outla
y
General governmen --
t
Public works -23,975
Parks and recreation -168,249
Total capital outlay -192,224
Total expenditures 21,427357,779
Revenues over (under) expenditures 47,836(305,282)
OTHER FINANCING SOURCES (USES)
Transfers in -135,000
et increase (decrease) in fund balances 47,836(170,282)
N
Fund balances - January 11,379,8541,419,751
Fund balances - December 31$1,427,690$1,249,469
108
Statement 29
MunicipalEarle BrownTotal
State AiHeritageonmajo
dNr
foCenteStreetCapital
rr
ConstructioImprovementsReconstructioTechnologyProjects
nn
$ -$ -$643,934$ -$643,934
701,373 -- -701,373
19,812 9,95742,606 12,698135,164
- 155,088- 245227,002
721,185 165,045686,540 12,9431,707,473
- -- 42,86942,869
- 62,810- 74,681224,067
- 62,810-117,550266,936
26,249 -- -26,249
26,955 -13,043 -85,328
53,204 -13,043 -111,577
- -- -55,076
- 326,415- 36,027362,442
611,373 -702,649 -1,337,997
- -- -168,249
611,373 326,415702,649 36,0271,868,688
664,577 389,225715,692153,5772,302,277
56,608 (224,180)(29,152)(140,634)(594,804)
- 235,000- -370,000
56,608 10,820(29,152)(140,634)(224,804)
738,322 402,0151,586,965540,1766,067,083
$ 794,930$ 412,835$1,557,813$399,542$5,842,279
109
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 30
CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Special assessments$400,000$ 400,000$472,956
Miscellaneous30,000 30,00042,159
Total revenues430,000 430,000515,115
EXPENDITURES
Current:
Public works:
Services and other charges- -55,754
Capital outlay:
Public works7,550,500 7,550,5002,617,144
Total expenditures7,550,500 7,550,5002,672,898
Revenues over (under) expenditures(7,120,500) (7,120,500)(2,157,783)
OTHER FINANCING SOURCES (USES)
Issuance of debt2,500,000 2,500,0002,339,932
Transfers in5,515,000 5,515,000831,297
Total other financing sources (uses)8,015,000 8,015,0003,171,229
et increase (decrease) in fund balance$ 894,500894,500$ 1,013,446
N
Fund balance - January 1(1,290,428)
Fund balance - December 31$(276,982)
110
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 31
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$9,522$ 9,522$14,077
)
Miscellaneous15,000 15,00038,420
Total revenues24,522 24,52252,497
EXPENDITURES
Current:
General government:
Services and other charges- -86,576
Public works:
Services and other charges17,056 286,55623,903
Parks and recreation:
Services and other charges- -55,076
Capital outlay:
Public works269,500 -23,975
Parks and recreation- -168,249
Total capital outlay269,500 -192,224
Total expenditures286,556 286,556357,779
Revenues over (under) expenditures(262,034) (262,034)(305,282)
OTHER FINANCING SOURCES (USES)
Transfers in135,000 135,000135,000
et increase (decrease) in fund balance$(127,034)$ (127,034)(170,282)
N
Fund balance - January 11,419,751
Fund balance - December 31$1,249,469
111
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 32
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, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$814,000$ 814,000$701,373
l
Investment earnings (net of market value adjustment 10,00010,000 19,812
)
Total revenues824,000 824,000721,185
EXPENDITURES
Current:
Public works:
Supplies26,900 26,90026,249
Services and other charges33,400 33,40026,955
Total public works60,300 60,30053,204
Capital outlay:
Public works817,000 817,000611,373
Total expenditures877,300 877,300664,577
et increase (decrease) in fund balance$(53,300)$ (53,300)56,608
N
Fund balance - January 1738,322
Fund balance - December 31$794,930
112
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 33
CAPITAL PROJECT FUND - EARLE BROWN HERITAGE CENTER IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$ --$ $9,957
)
Miscellaneous- -155,088
Total revenues- -165,045
EXPENDITURES
Current:
General government:
Services and other charges280,000 280,00062,810
Capital outlay:
General governmen -- 326,415
t
Total expenditures280,000 280,000389,225
Revenues over (under) expenditures(280,000) (280,000)(224,180)
OTHER FINANCING SOURCES (USES)
Transfers in200,000 200,000235,000
et increase (decrease) in fund balance$(80,000)$ (80,000)10,820
N
Fund balance - January 1402,015
Fund balance - December 31$412,835
113
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 34
CAPITAL PROJECT FUND - STREET RECONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Franchise fees$660,000$ 660,000$643,934
Investment earnings (net of market value adjustment 50,00050,000 42,606
)
Total revenues710,000 710,000686,540
EXPENDITURES
Current:
Public works:
Services and other charges- -13,043
Capital outlay:
Public works1,050,000 1,050,000702,649
Total expenditures1,050,000 1,050,000715,692
et increase (decrease) in fund balance$(340,000)$ (340,000)(29,152)
N
Fund balance - January 11,586,965
Fund balance - December 31$1,557,813
114
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 35
CAPITAL PROJECT FUND - TECHNOLOGY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2008
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$9,000$ 9,000$12,698
)
Miscellaneous- -245
Total revenues9,000 9,00012,943
EXPENDITURES
Current:
General government:
Supplies377,617 377,61742,869
Services and other charges- -74,681
Total general governmen377,617 377,617117,550
t
Capital outlay:
General governmen -- 36,027
t
Total expenditures377,617 377,617153,577
Revenues over (under) expenditures(368,617) (368,617)(140,634)
OTHER FINANCING SOURCES (USES)
Transfers in70,000 70,000-
et increase (decrease) in fund balance$(298,617)$ (298,617)(140,634)
N
Fund balance - January 1540,176
Fund balance - December 31$399,542
115
116
NONMAJOR ENTERPRISE FUNDS
The City of Brooklyn Center had the following nonmajor Enterprise Funds during the
year:
Recycling and Refuse Fund - This fund accounts for the operation of a state-mandated
recycling program.
Street Light Utility Fund - This fund was created to account for expenses related to
streetlights within the City. Benefiting properties are billed for these expenses.
117
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 36
COMBINING STATEMENT OF NET ASSETS
ONMAJOR ENTERPRISE FUNDS
N
December 31, 2008
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
ASSETS
Current assets:
Cash and cash equivalents$-$ 72,996$72,996
Receivables:
Accounts - ne 58,39353,650 112,043
t
Total current assets53,650 131,389185,039
oncurrent assets:
N
Capital assets:
Street light system 83,540- 83,540
s
Construction in progress- 329,577329,577
et capital assets- 413,117413,117
N
Total assets53,650 544,506598,156
LIABILITIES
Current liabilities:
Accounts payable864 13,65614,520
Interfund payable4,354 -4,354
Total liabilities5,218 13,65618,874
NET ASSETS
Invested in capital assets- 413,117413,117
Unrestricted48,432 117,733166,165
Total net assets$48,432$ 530,850$579,282
118
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 37
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
ONMAJOR ENTERPRISE FUNDS
N
For the Year Ended December 31, 2008
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
OPERATING REVENUES
Sales and user fees$259,774$ 250,260$510,034
OPERATING EXPENSES
Supplies89 9151,004
Other services264,313 21,219285,532
Insurance1,581 1,1622,743
Utilities- 159,106159,106
Total operating expenses265,983 182,402448,385
Operating income (loss)(6,209) 67,85861,649
NONOPERATING REVENUES (EXPENSES)
Investment earnings (net of market value adjustment 3,938103 4,041
)
Income (loss) before contributions and transfers(6,106) 71,79665,690
Capital contributions- 329,577329,577
Transfers out- (50,175)(50,175)
Change in net assets(6,106) 351,198345,092
et assets - January 154,538 179,652234,190
N
et assets - December 31$48,432$ 530,850$579,282
N
119
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 38
COMBINING STATEMENT OF CASH FLOWS
ONMAJOR ENTERPRISE FUNDS
N
For the Year Ended December 31, 2008
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers$260,343$ 246,931$507,274
Payments to suppliers(265,568) (198,249)(463,817)
et cash flows provided (used) by operating activities(5,225)48,68243,457
N
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out- (50,175)(50,175)
Interfund payable4,354 -4,354
et cash flows provided (used) by
N
noncapital financing activities4,354 (50,175)(45,821)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets- (83,540)(83,540)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments103 3,9384,041
et increase (decrease) in cash and cash equivalents (81,095)(768) (81,863)
N
Cash and cash equivalents - January 1768 154,091154,859
Cash and cash equivalents - December 31$-$ 72,996$72,996
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $(6,209)$ 67,858$61,649
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in receivables569 (3,329)(2,760)
Increase (decrease) in payables415 (15,847)(15,432)
Total adjustments984 (19,176)(18,192)
et cash flows provided (used) by operating activities$(5,225)$ 48,682$43,457
N
Noncash financing activities:
Capital contributions$-$ 329,577
120
INTERNAL SERVICE FUNDS
The City’s Internal Service Funds included in this section are:
Central Garage Fund - 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.
Public Employees Retirement Fund - 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 employees 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.
Public Employees Compensated Absences Fund - This fund accounts for payment of
unused vacation and sick leave time and the allocation of such costs to user departments.
121
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 39
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2008
Total
CentralEE RetiremenEE CompInternal
t
GarageBenefiAbsencesService
t
ASSETS
Current assets:
Cash and cash equivalents$4,180,414$1,447,386$ 974,855$6,602,655
Receivables:
Accounts - ne14,149645 -14,794
t
Inventories25,344- -25,344
Total current assets4,219,9071,448,031 974,8556,642,793
oncurrent assets:
N
Capital assets:
Land improvement166,108- 166,108-
s
Machinery and equipmen -7,388,731 - 7,388,731
t
Total capital assets7,554,839- 7,554,839-
Less: Allowance for depreciatio(3,799,654)- (3,799,654)-
n
et capital assets3,755,185- 3,755,185-
N
Total assets7,975,0921,448,031 974,85510,397,978
LIABILITIES
Current liabilities:
Accounts payable30,772- -30,772
Accrued salaries payable9,349- -9,349
Compensated absences payable-curren -- 107,595 107,595
t
Accrued health insurance liability-curren -- - -
t
Total current liabilities40,121- 107,595147,716
oncurrent liabilities:
N
Compensated absences payable-long-ter -- 968,358 968,358
m
et OPEB Obligation-147,045 147,045-
N
Total noncurrent liabilities-147,045 968,3581,115,403
Total liabilities40,121147,045 1,075,9531,263,119
NET ASSETS
Invested in capital assets3,755,185- 3,755,185-
Unrestricted4,179,7861,300,986 (101,098)5,379,674
Total net assets$7,934,971$1,300,986$ (101,098)$9,134,859
122
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 40
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2008
Total
CentralEE RetiremenEE CompInternal
t
GarageBenefiAbsencesService
t
OPERATING REVENUES
Sales and user fees$1,399,535$71,112$ 19,532$1,490,179
OEPRATING EXPENSES
Personal services269,302314,184 146,169729,655
Supplies486,940- 486,940-
Other services152,876- 152,876-
Insurance53,120- -53,120
Utilities1,879- -1,879
Depreciation631,250- 631,250-
Total operating expenses1,595,367314,184 146,1692,055,720
Operating income (loss)(195,832)(243,072) (126,637)(565,541)
NONOPERATING REVENUES (EXPENSES)
Intergovernmenta 10,770- - 10,770
l
Investment earnings (net of market value adjustment107,14637,377 25,539170,062
)
Gain (loss) on sale of capital assets73,036- -73,036
Other revenue26,806- -26,806
Total nonoperating revenues (expenses)206,98848,147 25,539280,674
Change in net assets11,156(194,925) (101,098)(284,867)
et assets - January 1 , as previously reported7,923,815(1,021,471) 6,902,344-
N
Change in accounting principle 2,517,382- 2,517,382-
Net assets - January 1, restated 7,923,815 1,495,911 9,419,726-
et assets - December 31$7,934,971$1,300,986$ (101,098)$9,134,859
N
123
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 41
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2008
Total
CentralEE RetiremenEE CompInternal
t
GarageBenefiAbsencesService
t
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided$1,393,113$71,112$ 19,532$1,483,757
Payments to suppliers(729,448)- (729,448)-
Payments to employee(265,862)(167,050)(93,922)(526,834)
s
Miscellaneous revenue26,80610,770 -37,576
et cash flows provided (used) by operating activities424,609 (85,168) (74,390) 265,051
N
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets(792,282)- (792,282)-
Proceeds from sale of capital assets123,528- 123,528-
et cash flows provided (used) by capital
N
and related financing activities(668,754)- (668,754)-
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments107,14637,377 25,539170,062
et increase (decrease) in cash and cash equivalents(136,999) (47,791) (48,851) (233,641)
N
Cash and cash equivalents - January 14,317,4131,495,177 1,023,7066,836,296
Cash and cash equivalents - December 31$4,180,414$1,447,386$ 974,855$6,602,655
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $(195,832)$(243,072)$ (126,637)$(565,541)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation631,250- 631,250-
Changes in assets and liabilities:
(Increase) decrease in receivables(6,422)89 -(6,333)
(Increase) decrease in inventories7,700- -7,700
Increase (decrease) in payables(42,333)- -(42,333)
Increase (decrease) in accrued expenses3,440147,045 52,247202,732
Other nonoperating income26,80610,770 -37,576
Total adjustments620,441157,904 52,247830,592
et cash provided (used) by operating activities$424,609$(85,168)$ (74,390)$265,051
N
Noncash financing activities:
Gain on sale of assets$73,036$-$ -
124
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 126
These tables contain trend information to help the reader understand
the City’s financial performance by placing it in historical perspective.
Revenue Capacity 136
These tables contain information to help the reader assess the City’s
most significant “own-source” revenue, property taxes.
Debt Capacity 142
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 148
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 150
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.
125
126
127
128
129
130
CITY OF BROOKLYN CENTER, MINNESOTA
Table 3
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
Last six fiscal years
(accrual basis of accounting)
(Unaudited)
PropertyTaxLodging
TaxIncrementsTaxTotal
2003$ 10,407,613$3,527,881$661,267$14,596,761
2004 10,788,1454,285,166656,85915,730,170
2005 11,288,8833,980,518710,61915,980,020
2006 11,618,4862,682,874738,77615,040,136
2007 12,200,5752,677,630706,93015,585,135
2008 12,458,7242,912,773619,96215,991,459
Note: Data for 1999-2002 is not available; the City did not prepare government-wide financial statements on an accrual basis for those years
131
CITY OF BROOKLYN CENTER, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
1999200020012002
General Fun
d
Reserve$105,074$105,074$ 105,074$173,353
d
Unreserved7,203,6337,346,969 7,328,7987,756,421
Total general fund$7,308,707$7,452,043$ 7,433,872$7,929,774
All other governmental fund
s
Reserve$ 7,307,2978,313,672$$ 7,015,583$7,234,260
d
Unreserved, reported in:
Special revenue funds1,723,5591,816,806 3,864,3474,453,879
Capital project funds8,884,5827,308,293 5,337,4231,870,176
Total all other governmental funds$18,921,813$16,432,396$ 16,217,353$13,558,315
132
Table 4
200320042005200620072008
$ 110,383$ 106,578$11,080$500$ 700$21,995
7,906,697 6,862,8717,283,8717,508,690 7,941,7147,721,443
$ 8,017,080$ 6,969,449$7,294,951$7,509,190$ 7,942,414$7,743,438
$ 7,509,315$ 13,230,540$5,150,818$5,176,808$ 11,288,685$9,997,668
6,211,019 25,750,17924,853,26722,862,211 11,738,46010,523,743
2,133,079 4,969,5063,232,8204,164,400 3,466,0294,282,881
$ 15,853,413$ 43,950,225$33,236,905$32,203,419$ 26,493,174$24,804,292
133
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
1999200020012002
Revenues
Property taxes$7,740,375$8,265,296$ 7,932,469$10,739,847
Tax increments2,902,5903,196,108 3,967,3983,022,252
Franchise fees-- --
Lodging taxes808,266836,857 826,957717,176
Special assessments909,8941,287,934 1,136,4541,190,031
Licenses and permits763,960632,549 788,629823,996
Intergovernmenta8,602,1667,899,522 5,824,5137,039,895
l
Charges for services739,054779,060 688,453575,748
Fines and forfeits205,460180,676 230,408278,557
Investment earning 798,229609,879 2,082,680 648,423
s
Miscellaneous168,050125,012 150,369267,717
Total revenues23,449,69424,001,243 23,628,33025,303,642
Expenditures
General governmen2,260,4152,429,196 2,504,3922,553,426
t
Public safet5,354,4135,453,143 5,672,0986,255,221
y
Public works1,904,2052,100,865 2,142,0641,986,692
Community service 95,14883,295 106,034 103,491
s
Parks and recreation2,233,4652,344,768 2,392,1682,125,415
Economic developmen2,664,9042,763,028 2,365,7322,095,545
t
ondepartmental343,925419,789 372,056366,282
N
Administrative services reimbursemen (795,737)(670,390) (767,504) (596,541)
t
Capital outla13,838,7027,275,675 6,558,1779,608,420
y
Debt service
Principal2,085,0003,970,000 2,805,0003,000,000
Interest1,373,6141,282,512 1,330,1621,034,139
Other charges13,93013,426 8,93128,712
Total expenditures31,485,47827,351,813 25,489,31028,560,802
Revenues over (under) expenditures(8,035,784)(3,350,570) (1,860,980)(3,257,160)
Other financing sources (uses)
Issuance of debt1,585,000735,000 730,000-
Discount on issuance of deb-- --
t
Premium on issuance of deb-- --
t
Sale of capital assets2,411,987194,491 572,266474,648
Transfers in3,655,4335,479,120 4,124,1844,263,453
Transfers out(3,704,790)(5,404,122) (3,798,684)(4,063,453)
Refunded bonds redeemed-- --
Total other financing sources (uses)3,947,6301,004,489 1,627,766674,648
et change in fund balances$(4,088,154)$(2,346,081)$ (233,214)$(2,582,512)
N
Debt service as a percentage of
noncapital expenditures14.82%23.05%18.41%16.81%
134
Table 5
200320042005200620072008
$ 10,268,278$ 10,598,478$11,641,177$11,525,040$ 12,094,359$12,403,914
3,466,114 3,834,0604,680,6882,664,144 2,727,6372,894,595
- 612,079662,614658,410 658,620643,934
661,267 656,858710,619738,776 706,930619,962
1,232,682 1,313,7821,226,6551,214,571 1,364,4131,289,148
827,685 678,077675,530722,633 673,156643,736
3,479,082 3,239,0202,578,0312,375,697 3,171,7452,211,560
709,623 711,526754,575722,218 705,736761,404
290,408 254,980253,748256,600 291,423302,986
317,749 385,0221,078,4341,601,731 1,519,503733,877
607,582 609,902427,839477,296 404,420449,061
21,860,470 22,893,78424,689,91022,957,116 24,317,94222,954,177
2,475,323 2,594,0412,586,9932,839,150 2,951,1883,575,147
6,620,481 7,025,6297,014,5287,299,842 7,550,4348,048,529
2,114,3781,814,1072,197,1271,817,120 2,310,8462,139,864
91,581 67,32486,043123,172 74,38972,893
2,030,402 1,981,9982,121,1302,212,142 2,314,0992,409,291
1,758,257 1,006,5502,076,0231,386,558 5,659,3317,666,319
331,223 333,669315,355363,967 354,848301,396
(607,221) (784,084)(754,085)(529,362) (744,590)(802,775)
1,881,360 4,724,2898,335,9165,918,472 4,524,5244,531,003
3,220,000 3,751,5132,772,1893,127,146 2,786,0762,884,953
905,518 881,0161,214,7511,197,392 1,134,4121,060,165
26,079 126,85823,75853,226 12,89673,631
20,847,381 23,522,91027,989,72825,808,825 28,928,45331,960,416
1,013,089 (629,126)(3,299,818)(2,851,709) (4,610,511)(9,006,239)
1,205,000 25,770,000-1,460,000 -6,725,000
(8,860) (96,503)-(445) -(28,178)
- ----1,384
73,175 --- --
3,703,509 5,103,6132,811,7932,784,116 5,881,2571,969,533
(3,603,509) (3,098,803)(2,619,793)(2,211,209) (6,018,629)(1,549,358)
- (7,280,000)-- (529,138)-
1,369,315 27,678,307(7,088,000)2,032,462 (666,510)7,118,381
$ 2,382,404$ 27,049,181$(10,387,818)$(819,247)$(5,277,021)$(1,887,858)
21.88%24.89%18.37%19.14%15.90%14.65%
135
CITY OF BROOKLYN CENTER, MINNESOTA
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
(Unaudited)
1999200020012002
Real Property:
Residential$9,309,893$ 8,928,7389,976,862$ $8,495,196
onresidential10,657,58811,002,424 9,225,99114,093,094
N
Area-wide allocatio537,4061,504,330 746,438635,875
n
Personal property452,849437,707 452,680262,882
Less:
Tax increment districts2,054,6592,533,878 3,296,6242,450,218
Total Assessed Tax Capacity18,903,07720,387,445 20,924,32616,169,726
Direct Tax Rate 36.26934.645 35.99658.901
1
Estimated Market Value1,098,665,9001,177,854,4001,324,649,1001,488,832,300
Total Assessed Tax Capacity as a percentage
of Estimated Market Value1.72%1.73%1.58%1.09%
Beginning in 2002, the State of Minnesota significantly reduced state aids to the City and allowed these amounts to be included
1
in the proptery tax levy.
Source: City Assessing Department
136
Table 6
200320042005200620072008
$ 9,362,788$ 10,532,558$12,177,307$13,942,981$ 15,436,568$16,033,784
9,430,533 9,775,3529,903,1579,475,576 9,573,4059,864,552
875,145 1,097,5961,023,6181,161,174 1,624,1082,155,636
273,072 281,963294,377298,953 283,198291,815
2,538,825 3,134,4173,122,6652,559,620 2,463,6312,405,929
17,402,713 18,553,05220,275,79422,319,064 24,453,64825,939,858
52.792 53.69351.72348.069 45.36645.081
1,673,812,000 1,840,115,300 1,959,999,1002,035,666,1002,140,133,6002,197,067,700
1.04%1.01%1.03%1.10%1.14%1.18%
137
CITY OF BROOKLYN CENTER, MINNESOTA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
(Unaudited)
Overlapping Rates
Metro
CitCountDist 11Dist 279Dist 281Dist 286Districts
yy
1999 36.998 40.99454.856 59.807
54.337 47.716 6.035
2000 35.369 39.65551.792 44.356
53.284 48.492 6.039
2001 36.740 37.67952.224 47.139
56.784 46.678 5.830
2002 58.901 50.78929.082 26.338
30.092 30.213 3.537
2003 54.021 50.60726.941 49.817
35.042 29.179 3.825
2004 53.693 47.32421.050 39.892
23.709 34.258 3.502
2005 51.723 44.17221.492 36.159
24.336 29.989 3.304
2006 48.069 41.01620.046 39.781
21.815 28.489 2.924
2007 45.366 39.11019.353 36.154
23.758 28.750 2.671
2008 45.081 38.57116.983 37.519
19.710 27.243 2.562
Source: City Assessing Department and Hennepin County Property Tax Services
1
Watershed levy was levied in 2006 and 2008 in schools districts 279 and 281, and parts of school districts 11 and 286.
138
Table 7
Total Direct and Overlapping Rates
OtheDistrict 11District 11DistricDistricDistrict 286District 286
rtt
DistrictsWatershed no watershewith watershe279281no watershewith watershe
1 dddd
3.247 - 142.130 - 141.611 134.990 147.081 -
3.111 - 135.966 - 137.458 132.666 128.530 -
2.294 - 134.767 - 139.327 129.221 129.682 -
3.844 - 146.153 - 147.163 147.284 143.409 -
5.161 - 140.555 - 148.656 142.793 163.431 -
3.986 - 129.555 - 132.214 142.763 148.397 -
4.078 - 124.769 - 127.613 133.266 139.436 -
4.074 0.073 116.129 116.202 117.971 124.645 135.864 135.937
4.639 - 111.139 - 115.544 120.536 127.940 -
4.835 0.265 108.032 108.297 111.024 118.557 128.568 128.833
139
CITY OF BROOKLYN CENTER, MINNESOTA
Table 8
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
20081999
Percentage ofPercentage of
et TaxTotal Taxet TaxTotal Tax
NN
TaxpayerCapacitRanCapacity ValueCapacitRanCapacity Value
ykyk
Brooks Mall Properties LLC$ 394,29011.52%$867,78324.49%
Luther Properties 382,45221.47% --
Regal Cinemas, Inc. 245,75830.95% --
BCC Associates, LLC 223,25040.86% --
CSM Freeway Airport, LL 221,97050.86% --
C
Twin Lakes LL 217,80060.84% --
C
Brookdale Corner, LLC 209,85070.81% --
Medtronic, Inc. 199,39880.77% --
Twin Lake Nort 175,73890.68%318,05071.65%
h
Wickes Furniture Compan 171,170100.66% --
y
Dayton-Hudson Corp.--1,006,10215.20%
Prudential Insurance Co.--503,18432.60%
Ryan Construction Co.--581,30443.01%
Lang-Nelso--364,38551.88%
n
Bradley Real Estate Inc.--342,05061.77%
First Industrial Realty Trus--274,97481.42%
t
JC Penney's--260,20091.35%
AMB Property, LP--203,046101.05%
Totals$ 2,441,6769.41%$4,721,07824.42%
Source: City Assessing Department
140
141
142
CITY OF BROOKLYN CENTER, MINNESOTA
Table 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last ten fiscal years
(Unaudited)
Less: AmountPercentage of
s
GeneralAvailable iet GeneralEstimate
nNd
ObligationDebt ServiceObligationMarket ValuePer
BondsFunDebtof PropertyCapita
d
1999$ 7,575,000$ 725,868$6,849,1320.58%$240
2000 7,175,000 775,9116,399,0890.48%219
2001 6,760,000 831,5885,928,4120.40%203
2002 6,325,000 871,9705,453,0300.33%187
2003 5,875,000 907,7094,967,2910.27%170
2004 10,450,000 5,903,5774,546,4230.23%157
2005 5,045,000 1,054,2303,990,7700.20%142
2006 4,465,000 1,104,7493,360,2510.16%120
2007 3,875,000 1,163,3062,711,6940.12%97
2008 3,275,000 1,198,2342,076,7660.09%74
143
CITY OF BROOKLYN CENTER, MINNESOTA
Table 12
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
as of December 31, 2008
(Unaudited)
EstimatedEstimated Share
DebtPercentageof Overlapping
1
Governmental UnitOutstandingApplicable Debt
Overlapping debt:
School Districts:
No. 11 Anoka$ 146,832,1997.00%$ 10,278,254
No. 279 Osseo 208,393,2404.42% 9,210,981
No. 281 Robbinsdale 240,892,7964.96% 11,948,283
No. 286 Earle Brown 28,801,021100.00% 28,801,021
Metropolitan Council 137,904,6530.62% 855,009
Hennepin County 501,975,3591.37% 6,877,062
Hennepin Regional RR Authority 43,486,8621.37% 595,770
Hennepin County Park Reserve District 72,794,8151.81% 1,317,586
Total overlapping debt$1,025,855,506 69,883,966
2
City of Brooklyn Center direct debt 2,076,766
Total direct and overlapping debt$71,960,732
Source: City Finance Department, Hennepin County, and Springsted Financial Advisors.
1
The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining
the portion of each entity's tax capacity that is within the City's boundaries and dividing it by that entity's total tax capacity.
2
Includes only general obligation debt which is repaid through property taxes, net of amounts available.
144
CITY OF BROOKLYN CENTER, MINNESOTA
Table 13
LEGAL DEBT INFORMATION
Last ten fiscal years
(Unaudited)
Total net debt
applicable to the limit
Total net debtas a percentage of
Debt Limiapplicable to limitLegal debt margidebt limi
tnt
1999$ 21,911,836$6,849,132$15,062,70431.26%
2000 23,370,2746,399,08916,971,18527.38%
2001 25,381,4005,928,41219,452,98823.36%
2002 27,354,8685,453,03021,901,83819.93%
2003 29,594,6884,967,29124,627,39716.78%
2004 32,503,0964,546,42327,956,67313.99%
2005 36,003,5363,990,77032,012,76611.08%
2006 39,219,0543,360,25135,858,8038.57%
2007 42,259,9582,711,69439,548,2646.42%
2008 65,676,3782,076,76663,599,6123.16%
Legal Debt Margin Calculation for Fiscal Year 2008
Taxable Market Value$2,189,212,600
Debt limit (2% of Taxable Market Value)65,676,378
Debt applicable to limit
et general obligation bonds2,076,766
N
Legal debt margi$63,599,612
n
145
CITY OF BROOKLYN CENTER, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
(Unaudited)
Storm Sewer Bonds
StorLess:et
mN
SeweOperatingAvailableDebt Service
r
ChargesExpensesRevenuePrincipalInterestCoverage
1999$ 999,867$ 232,405$767,462$170,000$ 67,5583.23
2000 1,074,619 307,389767,230180,000 59,1103.21
2001 1,129,502 327,412802,090190,000 49,9503.34
2002 1,377,638 662,747714,891200,000 40,1002.98
2003 1,264,512 809,130455,382210,000 29,5401.90
2004 1,276,778 756,593520,185220,000 18,2502.18
2005 1,293,841 1,086,600207,241230,000 6,2100.88
2006 ---- -
-
2007 ---- -
-
2008 ---- -
-
146
Table 14
Special Assessment BondsTax Increment Bonds
SpecialTax
AssessmenDebt ServiceIncremenDebt Service
tt
CollectionsPrincipalInterestCoverageCollectionsPrincipalInterestCoverage
$ 1,165,000$ 662,232$
$ 690,538$ 405,000$ 189,790 1.162,902,590 1.59
994,839 535,000 231,972 1.30 3,186,573 1,280,000 595,554 1.70
1,029,378 700,000 252,563 1.08 3,713,349 1,450,000 519,409 1.89
928,559 780,000 249,497 0.90 2,882,577 1,540,000 433,893 1.46
1,153,044 870,000 242,749 1.04 3,142,158 1,645,000 340,413 1.58
1,410,344 1,005,000 218,457 1.15 3,606,130 1,775,000 286,867 1.75
1,058,557 990,000 197,760 0.89 3,576,209 770,000 729,740 2.38
1,035,961 1,000,000 167,284 0.89 1,609,994 1,000,000 887,080 0.85
884,261 900,000 162,486 0.83 1,707,470 1,050,000 847,236 0.90
816,798 980,000 145,121 0.73 1,906,053 1,030,000 804,491 1.04
147
CITY OF BROOKLYN CENTER, MINNESOTA
Table 15
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
(Unaudited)
School Enrollments
Per Capitao. 286
N
PersonalPersonalUnemploymeno. 11o. 279o. 281Earle
tNNN
PopulationIncomeIncomeRateAnokOsseoRobbinsdaleBrow
an
$ 40,0781,143,625,730$
1999 28,5352.4% 40,964 22,171 1 3,800 1,734
1,255,767,084
2000 29,172 43,0473.0% 41,314 22,017 1 3,706 1,682
1,267,929,360
2001 29,180 43,4524.2% 41,419 22,041 1 3,754 1,724
1,276,318,420
2002 29,185 43,7325.2% 41,383 21,824 1 3,656 1,732
1,316,943,534
2003 29,174 45,1415.9% 41,254 21,698 1 3,765 1,732
1,393,429,205
2004 29,005 48,0415.6% 41,592 21,620 1 6,196 1,691
1,418,442,444
2005 28,137 50,4124.8% 41,596 21,792 1 3,368 1,679
1,476,102,405
2006 27,901 52,9054.6% 41,310 22,071 1 3,194 1,705
****
2007 27,9015.6% 40,656 21,859 1 2,891 1,763
****
2008 27,9077.6% 40,152 21,001 1 2,526 2,012
Sources:Population - Metropolitan Council
Personal income - Bureau of Economic Analysis
Unemployment rate - Minnesota Department of Employment and Economic Development
School Enrollments - Minnesota Department of Education
** - personal income data not available for these years
148
CITY OF BROOKLYN CENTER, MINNESOTA
Table 16
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
(Unaudited)
20081999
Percentage ofPercentage of
Total CityTotal City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Brookdale Center 113.65%1,900 110.47%1,700
Promeon, Division of Medtronics 29.70%1,350 31.85%300
Graco, Inc. 35.75%800 70.62%100
Independent School District #286 42.18%303
Nations Care Link 51.62%225
Cub Foods 61.22%170
City of Brooklyn Center 71.10%153 22.16%350
Best Buy 81.04%145
Target 91.01%140
TCR Corporation 101.01%140 51.08%175
Hoffman Engineering 41.66%270
Ault, Inc. 60.99%160
Cass Screw Machine Products 80.77%125
Precision, Inc. 90.62%100
Haiwatha Rubber Company 100.52%85
Totals 5,32638.26%3,36520.73%
Source: Minnesota Department of Employment and Economic Development
149
CITY OF BROOKLYN CENTER, MINNESOTA
Table 17
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION
Last ten fiscal years
(Unaudited)
1999200020012002200320042005200620072008
General governmen
t
Administrativ
e
6.4 6.4 6.5 6.5 6.5 6.0 6.0 6.0 6.0 7.0
Elections
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance
7.0 7.0 7.0 7.0 6.0 6.0 6.0 6.0 6.0 5.0
Assesso
r
4.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Government buildings
5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Information technolog
y
1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0
Total general governmen 24.424.4 24.523.523.523.023.023.0 23.023.0
t
Public safet
y
Police
Officers 42.042.0 42.042.042.042.042.042.0 43.046.0
Civilians17.0 17.0 16.016.015.015.015.015.0 12.012.0
Fire
1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0
Building inspectio
n
4.0 5.0 5.0 4.0 4.0 4.0 4.0 4.0 4.0 6.0
Total public safety 65.064.0 64.063.062.062.062.063.0 61.066.0
Public works
Engineerin 10.010.0 10.010.08.0
g
7.0 7.0 6.0 6.0 5.0
Streets 10.910.9 10.911.011.010.09.0 10.0 10.011.0
Total public works 20.920.9 20.921.019.017.016.016.0 16.016.0
Parks and recreation
Administratio
n
6.0 6.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0 6.0
Community cente
r
5.0 5.5 5.5 5.0 5.0 3.0 3.0 3.0 3.0 3.0
Park maintenance 10.010.0 10.010.010.08.0
8.0 7.0 7.0 7.0
Total park and recreation21.0 21.5 21.521.020.017.017.016.0 16.016.0
Economic developmen
t
4.6 4.6 4.5 4.5 4.5 4.0 4.0 4.0 4.0 4.0
Municipal liquor
3.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0
Golf course
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Earle Brown Heritage Center13.0 13.0 13.011.011.011.011.011.0 11.011.0
Water
5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.3 5.3 5.3
Sanitary sewe
r
2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.3 2.3 2.3
Storm sewe
r
- - - - - - 1.0 1.4 1.4 1.4
Central garage
5.1 5.1 5.1 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Total
164.0166.5165.5160.0156.0150.0150.0151.0150.0155.0
Source: City Annual Budget documents
150
151
152