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HomeMy WebLinkAboutCAFR-2001COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 2001 Michael J. McCauley, City Manager Prepared by THE DEPARTMENT OF FINANCE (Member of Government Finance Officers Association of the United States and Canada) City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FI NANC AL REPORT Year Ended December 31, 2001 TABLE OF CONTENTS INTRODUCTORY SECTION Title Page Table of Contents City Officials Organization Chart City Manager's Letter Letter of Transmittal Certificate of Achievement I I. FINANCIAL SECTION Independent Auditors' Report A. General Purpose Financial Statements (Combined Statements overview): Combined Balance Sheet -All Fund Types and Account Groups Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Govern menta Fund Types Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget And Actual General and Special Revenue Funds Combined Statement of Revenues, Expenses and Changes in Retained Earnings M Proprietary Fund Types Combined Statement of Cash F ows Proprietary Fund Types Notes to Financia Statements Exhibit Page Number Number I II VII 2 3 4 -14 15 16 17 1 18 -19 2 20 3 21 4 22 5 23 24-47 City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2001 TABLE OF CONTENTS B. Combining, Individual Fund and Account Group Financial Statements and Schedules: General Fund: Comparative Balance Sheet Comparative Statement of Revenues, Expenditures and Changes in Fund. Balance Budget and Actual Schedule of Revenues Other Financing Sources Budget and Actual Schedule of Expenditures other Financing Uses Budget and Actual Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Statement of Revenues, Expenditures and Changes in Find Balance Budget and Actual Housing and Redevelopment Authority Fund Statement of Revenues, Expenditures and Changes in -Fund Balance Budget and Actual. Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Earle Brown Tax Increment Financing District Fund Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tax Increment District No. 3 Fund Statement/ Schedule Page Number Number A-1 A -2 S -'I S -2 B-1 49 51-52 53-57 5g -5o B -2 61 -62 B -3 63 B -4 54 55 m City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2001 TABLE OF CONTENTS iv Statement/ Schedule Page Number Number Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tax Increment District No. 4 Fund B -7 67 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Police Drug Forfeiture Fund B -8 68 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Community Development Block Grant Fund B-9 69 Statement of Revenues, Expenditures and Changes in Fund Balance Budge_ t and Actual City Initiatives Grant Fund B -10 70 Debt Service Funds: Combining Balance Sheet C-1 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 73 Capital Projects Funds: Combining Balance Sheet D -1 75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D -2 76 Project- Length Schedule of Construction Projects Capital Improvements Fund S-3 77 Project Length Schedule of Construction Projects Municipal State Aid for Construction Fund S -4 78 Project- Length Schedule of Construction Projects Specia Assessment Construction Fund S -5 79 Enterprise Funds: Combining Balance Sheet E -1 .81-82 iv City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2001 TABLE OF CONTEIWTS Statement/ Schedule Page Number Number Combining Statement of Revenues, Expenses and Changes in Retained Earnings E -2 83-84 Combining Statement of Cash Flows E -3 85-86 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Municipal Liquor Fund E -4 87 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Golf Course Fund E -5 88 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Earle Brown Heritage Center Fund E -5 89 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Recycling and Refuse Fund E -7 90 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Water Utility Fund E -8 91 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Sanitary Sewer Fund E -9 92 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Storm Drainage Fund E -10 93 Internal Service Funds: Combining Balance Sheet F -1 95 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F -2 96 City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2001 TABLE OF CONTENTS Combining Statement of cash Flows General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets by Source Schedule of General Fixed Assets by Function and Activity Schedule of changes in General- Fixed Assets by Function and Activity General Long -Term Debt Account Group: Comparative Statement of General Long -Term Debt Summary of Debt Service Requirements to Maturity 11. STATISTICAL- SECTION General Governmental Expenditures by Function General Governmental Revenues and other Financing Sources by Source Tax Levies and Tax Collections Assessed Value and Estimated Market Value of All Taxable Property Direct and overlapping Tax Rates and Tax Levies Special Assessment Billings and collections Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per, capita Statement/ Schedule Page Number Number F -3 97 S -G 99 S-7 100 S -8 101 G 103 H 104 Table Page Number Number 1 106 2 107 3 108 4 109 5 110 0 111 7 112 vi City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2001 TABLE OF CONTENTS Demographic Statistics 15 121 Miscellaneous Statistical Facts 16 122-123 vi i Table P Page Number N Number Computation of Legal Debt Margin 8 8 1 113 Computation of Direct and Overlapping Debt g g 1 114 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures 1 10 1 118 Schedule of Revenue Bond Coverage 1 11 1 115 Property Value and Construction 1 12 1 117 Principal Taxpayers 1 13 1 113 Schedule of Insurance coverage 1 14 1 119-120 vi i City of Brooklyn center CITY OFFICIALS For the Year Ended December 31, 2001 ELECTED OFFICIALS Term of Office Mayor Myrna Kragness Councilmember Kay Lasman Councilmember Ed Nelson Councilmember Robert Peppe Councilmember Tim Ricker Four Years Four Years Four Years Four Years Four Years APPOINwrED OFFICIALS Term Expires 1213112002 12/31/2004 12/3112002 12/31/2004 12/31/2002 City Manager Michael J. McCauley Asst. city Manager /H.R. Director Jane chambers City Clerk Sharon Knutson City Treasurer Douglas Sell City Attorney Kennedy Graven City Prosecutor Carson Clelland Department Heads: Community Activities, Recreation Services James Olasoe Community Development Brad Hoffman Fiscal and Support Services Douglas Se Fire /Emergency Preparedness Ronald Boman Police Joel Downer Public Works Diane Spector Assessing Nancy Wojcik City Engineer Todd Howard Civil Defense coordinator Ronald Boman Fire Marshall Ronald Boman Health Officer Duane Orn, M.D. Liquor Stares Jeanne Mueller Public Works Superintendent Dave Peterson 1- 15 ti tz- LU 2 CL oiS 0 rr C I r LU ua to CL 4Z 32 VD uj CD ul o- or IA 0 e LL. US- ca I N c;n- rn R U.3 US 0 U 6 1 C ca tz- LU 2 CL oiS 0 rr C I r LU ua to CL 4Z 32 VD uj CD ul o- or IA 0 e LL. US- ca City of Brooklyn Center A Millennium Community May 3, 2002 HONORABLE MAYOR AND MEMBERS of CITY COUNCIL CITY OF BROOKLYN CENTER I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn Center for the fisca year ended December 31, 2001. Minnesota statutes and City Charter, Section 7.1 2, require that the financial statements of the City of Brooklyn Center be audited by the State Auditor or a certified public accountant selected by the City Council. This requirement has been complied with by the engagement of the firm of Deloitte Touche LLP and their report is included in the financial section of this report. This report has been prepared following the guidelines recorn mended by the Government Finance officers Association of the United States and Canada. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose Comprehensive Annual Financial Reports are judged to conform substantially with high standards of pub is financia reporting, inc uding generally accepted accounting princip es promu gated by the Governmenta Accounting Standards Board. our financial reports for the past fourteen years have received this award. It is my belief that the accompanying report meets program standards, and it will be submitted to the Government Finance officers Association for review. %-f- 6391 Shingle Creek Parkway Brooklyn Center, SIN 55430-2199 City .mall TDD Number (763) 569 -3300 FAX (763) 569 -3494 Recreation and Community Center Phone TDD Number (763) 569-3400 FAX (763) 569 -3434 3 iE7 cot y May 3, 2002 of Brooklyn Center A Millennium Community Mr. Michae J. Mccau ey City Manager City of Brooklyn Center Dear Mr. Mccau ey: The comprehensive annual financial report of the City of Brooklyn Center (the City) for the fiscal year ended December 31, 2001 is hereby submitted. Responsibility for both the accuracy of the, data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enc used data are accurate in a materia respects and are reported in a manner designed to present fairly the financial position, resu is of operations, and cash flows of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the government's financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. Included in the introductory section is this transmittal letter, the government's organizational chart and a list of principal officials. The financia section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on the genera purpose financial statements. The statistical section includes se ected financia and demographic information, genera y presented on a multi year basis. The City is required to comply with the provisions of the Single Audit Act Amendments of 1 996 and the Q.J.S. office of Management and Budget Circular A -1 33, "Audits of States, Local Governments, and Non Profit organizations." This requires a single audit when expenditures of federal grants exceed $300,000 in one year. Expenditures of federal grants were less than $300,000 during the year ended December 31, 2001; therefore, no single audit vas required for the year ended December 31, 2001. REPORTING ENT N The financial reporting entity includes all funds and account groups of the primary government (i.e., the City of Brooklyn Center as legally defined), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. 6301 Shingle Creek Parkway Recreation and Community Center Phone chi TDD Number Brooklyn Center, MN 55430 -2199 (763) 569 -3400 City Hall c& TDD Number (763) 569 -3300 FAX (763) 569 -3434 4 FAX (763) 569-3494 Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Economic Development Authority and the Housing and Redevelopment Authority are reported as special revenue funds of the City of Brooklyn Center. The City provides a full range of municipal services inc uding public safety (police and fire), streets, sanitation, social services, culture- recreation, public improvements, planning and zoning, and general administrative services. The City operates an off -sale liquor store, a public water, sewer, recycling and storm drainage utility, a golf course, and a convention center known as the Earle Brown Heritage Center. ECONOMIC CONDITION AND OUTLOOK The City of Brooklyn Center is a northern suburb of the Minneapolis /St. Paul metropolitan area, ying adjacent to the City of Minneapolis and located 10 miles from downtown _Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 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 29,17, 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. There were 4 new housing units constructed in 2001. The estimated market value of property within the city increased 12.39% in 2001 over 2000 and it increased 12.46% in 2000 over 1999. The City Assessor reports that residential values are continuing to show increases in early 2002 a though commercial /industrial values are less robust. Strong demand for starter homes has continued to drive up values of residential property in the City. Major transportation routes in and through the city, including I nterstates 94 and 594, and State Highways 100 and 252, have provided a continued impetus for development of a strong commercial tax base in the City along and adjacent to these corridors. Commercial and industrial properties comprise 40.55% of the City's taxable net tax capacity. The largest commercial property in the city is Brookdale Mall, a 1,000,000 square -foot regional shopping center anchored by Marshall Fields, Sears, J.C. Penney's, and Mervyn's of California. Other retail shopping centers in the City include Brookdale Square, a 125,000 square -foot strip center; Shingle creek Center, a 157,000 square -foot building anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored by Best Buy. Other freestanding retail establishments include Kohl's Department Store, Cub Foods Supermarket, and Rainbow Supermarket. The Brookdale corner retail development, with a cub Foods Supermarket and small retail shops, has enhanced the area surrounding the Brookdale Mall. The City's municipal liquor store is located in this newly developed area. 5 New construction projects in 2001 include a new industrial building in the France Avenue Business Park for $3,937,790; an addition to Evergreen Park Elementary School for $'1,363,995; Franz Repo office building for $1,266,045; a new showroom for Brookdale Dodge for $1 ,000,000 and the completion of the Brookpark Dental building for $892,000. Other commercial and industrial remodeling projects include Brookdale Mail projects for $1 9,30'1,'180; Brooklyn Center Community Center for $3,31 7,999; Medtronic for $2,692,640; Traveler's Express tenant improvements for $697,375 and L.S. West alarm and generator replacements for $538,000. The convergence of highways in Brooklyn Center and the close proximity to downtown Minneapolis make the City an attractive site for hotels and motels. Establishments now operating in the City include Americinn Baymont nn, Comfort Inn, Country Inn Suites, Extended StayAmerica, Hilton Hotel, Holiday Inn, Motel 6, and Super 8 Motel. MAJOR EVENTS OF 2001 Brooklyn center is a mature, developed suburb that is working to revita ize itse f. With its affordable housing, excellent schools, beautiful parks, and convenient access, it has the potential to continue to be a vibrant community for many years to come. The revitalization of Brooklyn center is proceeding on three tracks: replacement and renewal of the commercia areas of the city; replacement and enhancement of its aging streets, utilities, and parks; and the reinvigoration of neighborhoods. The City continued its redevelopment effort in the Brooklyn Boulevard and 89th Avenue area with the completion of acquisition and demolition of properties on the northeast corner. This approximately 5.2 acre site contained some of the older commercial property along Brook yn Bou evard. The city's Economic Development Authority has entered into a development agreement with a private developer for construction of a neighborhood retail center on the property. The project is scheduled to begin in the spring of 2002. Redevelopment of the Joslyn pole yard site located in the southwest corner of the city continued in 2001. In September, a 109,588 square foot industrial building was comp eted, adding to the 203,000 square foot building completed in 1999. This former Environmental Protection Agency Super Fund site is being privately developed with financial assistance provided for the cleanup from the State of Minnesota and the Metropolitan council. Tax increment financing is being provided by the City to facilitate the development through public improvements such as streets and storm water management amenities. Construction on the third phase of the project is anticipated in the near future. As part of a planned replacement of the aging infrastructure, the city is in the process of completing several major street and uti ity improvements. These improvements were funded by general obligation improvement bonds supported with special assessments against benefited properties, an operating transfer from the general fund, and funds from the capital projects funds and utility enterprise ftinds. About one twenty -fifth of the city's streets and utilities are reconstructed each year. It is expected that this will be a perpetual process, since at the end of twenty --five years, it will be necessary to begin the process anew with the streets that were done first. An additional benefit of these neighborhood projects has been the increased interest by residents and their efforts to paint, repair, G landscape and further enhance their properties. In 1997, Equitable Real Estate so d Brookdale Mail to Talisman Brookdale, LLC. Brookdale Mail is one of seven regional shopping centers in the seven county metropolitan. area. With a new owner and cooperation of existing tenants, more than $49 million is being invested to remode and expand the current facility. Additionally, several tenants are investing in upgrades to the fagade and interior spaces to accomplish a complete renovation. Several new tenants such. as Old Navy and Barnes and Noble have been added as part of the renovation. They will enhance the Mall's customer drawing ability and will add significantly to the local tax base. FINANCIAL INFORMATION Management of the city is responsible for establishing and maintaining interns controls designed to ensure that the assets of the city are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal contra s are designed to provide reasonable, but not abso ute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the City maintains budgQtary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriation approved by the City's governing body. Activities of the General Fund and special revenue funds are included in the annual appropriated budget. Project length financial plans are adopted for the capital Projects Funds. The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount without budget amend ment by the City Council) is established by department for the General Fund and at the aggregate fund level for all other governmental funds that adopt annual budgets. Appropriations lapse at year -end and generally are not re- appropriated in the following year's budget. As demonstrated by the statements and schedu es inc uded in the financial section of this report, the city continues to meet its responsibi ity for sound financia management. VA GENERAL FUND The following schedule presents a summary of general fund budgeted revenues for 2002, and actual revenues for the fiscal year ended December 31, 2001 compared to 2000. General Fund Revenues and Other Financing Sources Revenues and other financing sources for the General Fund tota ed $1 4,052,171 in 2001, an increase of $303,805 From the previous year. From the table above, it is apparent that the major sources of revenue available for funding of general governmental functions are taxes and intergovernmental revenue, which, when combined, provided 84% of the total revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1 ,380,106 and local government aid of $2,1 79,744. The decrease in intergovernmental revenue budgeted in 2002 is due to State legislation increasing the property tax burden for cities in exchange for increasing State aid to K -12 education. Homestead and agricultural aid is eliminated in 2002. In response to potential property tax abatements, the City has established a tax abatement reserve in the General Fund. Since the early 1990's, City management has estimated the potential future abatements on large commercial properties. The City increased the reserve in the General Fund by $57,510 in 2001. The balance in the reserve in the General Fund was $266,343 and $208,833 on December 31, 2001 and 2000, respectively. City management estimates that potential tax abatements not covered by the reserve would not materia y affect the finances of the City. The large increase in investment and other revenues is primarily due to the reversal of an investment writedown taken in 2000. In March 2001, the City received the full proceeds of a defaulted issue. The increase in license and permit revenues is attributed to an increase in construction and remodeling activity. As noted above, some individual large -scale projects were undertaken during 2001. P1' 2001 increase 2002 2001 2000 (Decrease) Budget Actual Actual from 2000 Taxes 1 0,658,829 $8,469,023 $8,703,772 $(234,749) Reserve for tax abatements (57,510) 41,400 (98,910) Licenses permits 565,485 788 632 156 Intergovernmental revenue 2,769,840 4 4 59,113 Charges for services 6059267 688,453 779 (90 Court fines 190 230,408 180,676 49,732 Investment and other Miscellaneous revenues 365,000 697,856 234 463,146 Total 5 1 154,421 $14,952 $14 $303,805 Revenues and other financing sources for the General Fund tota ed $1 4,052,171 in 2001, an increase of $303,805 From the previous year. From the table above, it is apparent that the major sources of revenue available for funding of general governmental functions are taxes and intergovernmental revenue, which, when combined, provided 84% of the total revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1 ,380,106 and local government aid of $2,1 79,744. The decrease in intergovernmental revenue budgeted in 2002 is due to State legislation increasing the property tax burden for cities in exchange for increasing State aid to K -12 education. Homestead and agricultural aid is eliminated in 2002. In response to potential property tax abatements, the City has established a tax abatement reserve in the General Fund. Since the early 1990's, City management has estimated the potential future abatements on large commercial properties. The City increased the reserve in the General Fund by $57,510 in 2001. The balance in the reserve in the General Fund was $266,343 and $208,833 on December 31, 2001 and 2000, respectively. City management estimates that potential tax abatements not covered by the reserve would not materia y affect the finances of the City. The large increase in investment and other revenues is primarily due to the reversal of an investment writedown taken in 2000. In March 2001, the City received the full proceeds of a defaulted issue. The increase in license and permit revenues is attributed to an increase in construction and remodeling activity. As noted above, some individual large -scale projects were undertaken during 2001. P1' The following schedule presents a summary of general fund budgeted expenditures for 2002, and actual expenditures for the fiscal year ended December 31, 2001, compared to 2000. General Fund Expenditures and Other Financing Uses Other Financing Uses 1 1,661,877 1 129,639 Total $15,154,421 $14,277 $13,825,030 $452,312 Total expenditures and other financing uses in 2001 increased by a total of $452,3'12 over 2000, a 3.27% increase. Salaries and benefits account for $186,918 of the increase, due primarily to the 3% wage adjustment for most employees. Additionally, other financing uses increased $129,639, reflecting a budgeted transfer to the Capital Projects Fund for Civic center improvements. Finally, the increase in public safety expenditures reflects market influences that resulted in higher wages, less than historical turnover resulting in less unpaid time for temporarily vacant positions, and less use of unpaid leave time. The General Fund transferred $409,044 to the Special Assessment construction Fund for infrastructure replacement. This transfer allows the City to pay cash for street improvements instead of borrowing through a bond issue for construction costs that would be supported with an additional property tax. The City anticipates this transfer to continue in the future as part of the planned replacement of the city's aging infrastructure. The General Fund had an excess of revenues and other financing sources over expenditures and other financing uses of $674,829 in 2001; the excess in 2000 was $823,336. Contributing to the excess, a large portion of the increase in revenues is due to the reversal of an investment writedown taken in 2000. consequently, investment revenue exceeded budgeted amounts by $313,829. License and permit revenues were also $232,464 higher than budgeted as a result of increased construction activity. D 2001 Increase 2402 2001 2000 (Decrease) Budget Actual Actual from 2000 General Government $2,570,716 $2,504,392 $2,421,762 $82,630 Public Safety 6,322,412 5 5 223,240 Public works 2 2 2 41,199 Community Service 103,419 106,034 95 10,886 Parks and Recreation 2 2 2 (11,080) Economic Development 342,000 392,805 397,507 (4 Non departmental 606,582 372,055 419,789 (47 Admin. Services Reimb. (782,684) (767,504) (795,737) 28,233 Other Financing Uses 1 1,661,877 1 129,639 Total $15,154,421 $14,277 $13,825,030 $452,312 Total expenditures and other financing uses in 2001 increased by a total of $452,3'12 over 2000, a 3.27% increase. Salaries and benefits account for $186,918 of the increase, due primarily to the 3% wage adjustment for most employees. Additionally, other financing uses increased $129,639, reflecting a budgeted transfer to the Capital Projects Fund for Civic center improvements. Finally, the increase in public safety expenditures reflects market influences that resulted in higher wages, less than historical turnover resulting in less unpaid time for temporarily vacant positions, and less use of unpaid leave time. The General Fund transferred $409,044 to the Special Assessment construction Fund for infrastructure replacement. This transfer allows the City to pay cash for street improvements instead of borrowing through a bond issue for construction costs that would be supported with an additional property tax. The City anticipates this transfer to continue in the future as part of the planned replacement of the city's aging infrastructure. The General Fund had an excess of revenues and other financing sources over expenditures and other financing uses of $674,829 in 2001; the excess in 2000 was $823,336. Contributing to the excess, a large portion of the increase in revenues is due to the reversal of an investment writedown taken in 2000. consequently, investment revenue exceeded budgeted amounts by $313,829. License and permit revenues were also $232,464 higher than budgeted as a result of increased construction activity. D GENERAL FUND BALANCE As of December 31, 2001, the fund balance of the General Fund totaled $7,433,872. This ending fund balance is the equivalent of approximately six months of budgeted expenditures for the 2002 budget. Property taxes and intergovernmental revenue represent 84% of the budgeted general fund revenue for 2002. The State of Minnesota has structured city finances so most of these revenues are received in the second half of the fiscal year. Minnesota cities typically receive as little as 10% of their total revenues in the first six months of the year. In recognition of this fact, a major portion of the fund balance is being designated for working capital. The Financial Management Policies adopted by the City Council on June 8, 1902 established a formula for determining a minimum level of fund balance to be maintained in the General Fund. Major elements of the formula include coverage of assets not readily convertible to cash and a provision for working capital equal to 45% of the next year's General Fund budget. The Financial Management Policies go on to state that no more that 50% of any year's surplus over the minimum level shall be committed to other uses in that year. Calculation of this formula on the fund balance in the General Fund as of December 31, 2000 revealed a surplus of $1,387,234 above the minimum requirements that is available for other uses. This allowed the transfer of up to $593,517 to other funds. The city Council passed a resolution transferring $458,000 of surplus funds from the General Fund to the capita Improvements Fund for future government building and park improvements and $225,000 tothe Special Assessment Construction Fund forfuture street improvements. These appear in the financial statements as equity transfers since they relate to the prior year's surplus. EARLE BROWN FARM TAX INCREMENT DISTRICT This tax increment financing (TIF) district had a deficit fund balance as of December 31, 2001. It is caused by a series of reductions in property tax class rates made by the State of Minnesota, which have eroded the revenue base for T F districts throughout Minnesota. Borrowing from other City funds is required in order for the district to meet its obligations. If the current situation continues, the districtwill experience annual deficits. The TIF district will make its last transfer to the Debt Service Funds in the year 2003. It has the authority to continue to exist and collect tax increments through the year 2008. Two -years of tax collections beyond 2003 should be sufficient to repay all internal borrowing. 10 ENTERPRISE OPERATIONS The City's enterprise operations are composed of seven separate and distinct activities: Liquor store, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary Sewer utility, and Storm Drainage utility. The liquor store operation has gradually been consolidated into one ocation. The remaining store operates in a leased facility adjacent to the new Cub Foods Supermarket. The City had operated three stores in the past. This past year was another transition year for the liquor operation as a formerly leased store was vacated and conso idated with the new location. Revenue levels for the new site have matched the aggregate level of revenues of three former locations. The operating results for 2001 are in lire with results prior to the transition year of 2000. Centerbrook Golf Course is a nine -hole, par three golf course owned and operated by the City. Green fees have been increasing each year to keep pace with inflation and the cost of operations. An interfund loan used to build the golf course is being repaid over a planned schedule covering twenty years. The business is increasingly competitive with many new courses being added within the area. Poorweather in 2001 pressured revenues and net income. 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 seating 1,000 people in either banquet or theater style. The City's policy for this enterprise is to set fees and user charges at a level that allows the operation to break -even excluding depreciation on contributed assets. That standard was met in 2001. To improve operating results, the bed and breakfast operation was changed during the year by eliminating individual room rentals and tying room rentals to other events requiring all rooms to be rented, as it was not economically feasible to profitably operate a lodging facility with only ten rooms. The dwindling supply of landfill space for the disposal of solid waste continues to be a major concern in Minnesota. State and county mandated goals for the diversion of solid waste to recycling, programs took effect in 1989. In response, the City opened a Recycling and Refuse Fund as an enterprise fund. Thus far, the City is only operating a recycling program in cooperation with several neighboring commUnities. Expansion into solid waste collection would only take place if there are clear advantages to be achieved. Recycling participation levels should increase with a recent change in co lection po icy. Customers are no longer required to sort certain recyclable items as all recyclable items can be placed into a single container for sorting by the recycling collection entity at a central location. The Water and Sanitary Sewer utilities are largely developed and already reach all parts of the City. During 2001,13 bi lion gallons of water were supplied through 115 miles of water main from the City's nine wells and 1.1 billion gallons of sewage flowed through the City's 105 miles of sewer mains. Rates for both water and sanitary sewer are reviewed annually and are increased as needed to provide for increased operating costs, debt and capital outlays. Three fourths of the sewer operating expenses are fees paid to the Metropolitan Counci Environmenta Services for contracted sewage treatment. P anned rate increases 11 should be sufficient to keep both funds profitable. Mains and customer service Ines are being replaced as needed concurrent with the City's 25 -year program for reconstructing infrastructure. Security of the City's water system was reviewed after the September 11, 2001 activities and was found to be very secure. During the 1980's, the State of Minnesota passed legislation that requires cities to take greater responsibi ity for contro ling storm water runoff. In response to this, the City created a Storm Drainage Utility Fund. Fees to property owners to support operations, maintenance and capital improvements are based on the amount of water runoff from the properties. The fees vary according to the size and absorption characteristics of the respective properties. Construction of storm sewer ines has been incorporated into the City's 25 -year program for reconstructing infrastructure. INTERNAL SERVICE FUNDS The Central Garage Fund was estab fished to own and maintain a I operating vehic es and equipment of the City valued over $10,000. At present, the fund maintains over 150 pieces of rolling and non rolling stock with a net book value of $2,855,874. Equipment maintenance, repair and fuel are charged based on usage. Replacement costs are provided from rental rates which the Central Garage Fund charges City Operating departments for the use of the equipment. The Public Employees Retirement Fund was established to provide certain health care benefits for qualifying City employees who retire before age 55. The fund had assets of $1,540,818 at year -end. The liability of the City is analyzed on an annual basis. A new fund, the Public Employees Compensated Absences Fund, was added in 2001. "rhe fund will account for liabilities to the City resulting from the accrual of vacation and sick eave time earned by City employees. The liabi ity is fu y funded. Departments are charged for any increase in the liability for its employees on an annual basis. DEBT ADMINISTRATION At December 31, 2001, the City had fourteen debt issues outstanding. These issues include $8,105,000 of general obligation bonds, $5,150,000 of general obligation special assessment debt, $850,000 of general obligation revenue bonds and $7,590,000 of general obligation tax increment bonds. The City maintained its A -1 rating from Moody's Investors Service. rhe City issued $730,000 of bonds supported solely by special assessments during 2001. The special assessment bond issue provided financing for various infrastructure improvement projects in the City. 12 CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to ensure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 118A. Interest earned during 2001 amounted to $3,073,882 compared to $1,1 23,714 during 2000. Changes in the fair value of investments increased 2001 earnings by $1,583,780; they decreased 2000 earnings by $708,285. The large change in fair value is attributed to the reversal of a writedown in 2000 of a defaulted commercial paper issue. The City has historically held a investments to maturity. Therefore unless the City iquidates the investment(s) prior to maturity, it is expected that the change in fair market value is temporary and w II be reversed in future periods. The City adopted a written investment policy in 1990 and adopted an updated policy in 2001. The policy's objectives are to minimize credit and market risk, provide needed liquidity, and maintain a competitive yield on the portfolio. Revisions to the policy in 2001 preclude the City from purchasing individual commercial paper issues. Commercial paper can only be purchased through a brokerage as part of a professionally managed fund. All deposits were either insured by federal depository insurance or collateralized. Investment securities are held in a custody arrangement with a bank trust department. All investments are listed in the lowest custodial credit risk category, Category 1. Cash and investment balances from all funds are combined and invested to the extent available in authorized investments. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. The City has not purchased any collateralized mortgage obligations, derivatives, or strip investments. In the recent past, the City has not needed to use any short -term debt and does not anticipate such a need in the future. Of the City's portfolio as of December 31, 2001, 40% matures within 1 year, another 52% in the second year and the last 8% by the eighth year. RISK MANAGEMENT The city insures for all significant risks. A schedule of such insurance is included in the Statistical Section. INDEPENDENT AUDIT The City Charter and State Statutes require the City Council to provide for an audit of the financial transactions of the City. Deloitte Touche LLP has been retained for that purpose and their unqualified opinion has been included in this report. 13 CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31, 2000. The City of Brooklyn Center was first awarded a Certificate of Achievement for Excellence in Financial Reporting for its 1966 fiscal year report and has received a total of 23 certificates, including 18 consecutive certificates for the years 1983 through 2000. In order to be awarded a certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report; its contents must conform to program standards. such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A certificate of Achievement is va id for a period of one year only. We believe our current report continues to conform to certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS We want to express our appreciation to all City staff for the assistance provided during the audit. we also wish to express our appreciation to the Mayor, members of the city Council, and the City Manager for their continued interest and support in planning and conducting the financial operations of the city in a responsible and progressive manner. Respectfully submitted, Douglas Sell Director of Fiscal Support Services Robert Sundberg Assistant Director of Finance 14 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Brooklyn Center, tilinnesota Forits Comprehensive Annua'. Financia- Report f or the Fisca'- Year Ended December 3 2000 A Certificate of Achievement for Excellence in Financia- Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public emp_oyee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 'vYV'V F THE �HIT£D STATE CV 00 Ala con CANADA Pr silent CORPORATION lIly Executive Director Deloitte Touche LLP 400 One Financial Plaza 120 South Sixth Street Minneapolis, Minnesota 55402 -1844 Tel: (612) 397 -4000 Fax: (612) 397 -4450 www.deloitte.com INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Brooklyn Center, Minnesota Deloitte &Touche We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota (the City) as of December 31, 2001 and for the year then ended, listed in the foregoing table of contents. 'These general purpose financial statements are the responsibility of the management of the City. our responsibility is to express an opinion on these general purpose 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City as of December 31, 2001 and the results of its operations and the cash flows of its proprietary fund types for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City. These financial statements and schedules are also the responsibility of the management of the City. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. The statistical data on pages 106 -123 are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City. Such additional information has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated May 3, 2002, on our consideration of the City's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. May 3, 2002 Deloitte Touche Tohmatsu City of Brooklyn center, Minnesota GENERAL PURPOSE F NANCIAL STATEMENTS The genera purpose financial statements are intended to provide a financial overview of municipal operations. These reports are at a summary evel and include those data needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in the financial planning process. 17 City of Brooklyn Center COMBINED BALANCE SHEET All Fund Types and Account Groups December 31, 2001 ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents (Notes 1 F, 2) Investments (Notes 1 F, 2) Receivables: Accounts Delinquent taxes (Note 1 J) Special assessments Due from other funds (Note 9) Due from other governments Inventories and supplies (Note 1 G) Prepaid expenses Advances to other funds (Nate 9) Fixed assets, net (Notes 1 C, 3) Other Debits: Amount available in Debt Service Funds Amount to be provided for General Long -Term Debt Total Assets and Other Debits LIABILITIES. EQUITY AND OTHER CREDITS Liabilities: Accounts payable Contracts payable Due to other funds (Note 9) Accrued salaries and wages Accrued vacation sick pay (Note 1 H) Accrued health insurance Accrued interest payable Advances from other funds (Note 9) Deferred revenue (Note 1J) General obligation bonds payable (Note 6) Other long -term liabilities (Note 6) Special assessment bonds with governmental commitment (Note 6) Revenue bonds payable (Note 6) Total Liabilities Equity and other Credits: Contributed capital (Note 4) Investment in general fixed assets Retained earnings: (Notes 8 10) Reserved Unreserved Fund Balances: (Notes 8 10) $8,870,404 $5,414,421 $9,004,037 $8,614,686 $508,939 $328,752 $1,526 $996,382 49,000 502,447 335,501 7,130 5,959 698,143 592,092 13,602 3,529,897 691,853 1,436,532 1,550,074 3,531,523 1,734,194 Reserved 105,074 5,472,514 Unreserved: Designated 6,437,653 Undesignated 891,145 3 Total Equity and other Credits 7,433,872 3,864,347 5,472,514 Total Liabilities, Equity and Other Credits $8,870,404 $5,414,421 $9,044,037 (See notes to financial statements) 1,543,069 5,337,423 6,880,492 $8,614,685 18 Governmental Fund Types Special Debt Capital General Revenue Service Projects $5,050,325 $2,840,392 $4,596,407 $3,873,515 3,309,529 1,856,007 863,930 2,533,055 67,160 9,021 2,878 263,126 13,602 101,718 1,893 3,428,179 198,209 502,447 65,190 192,952 1 3,803 462,067 105,074 1 ,543,069 $8,870,404 $5,414,421 $9,004,037 $8,614,686 $508,939 $328,752 $1,526 $996,382 49,000 502,447 335,501 7,130 5,959 698,143 592,092 13,602 3,529,897 691,853 1,436,532 1,550,074 3,531,523 1,734,194 Reserved 105,074 5,472,514 Unreserved: Designated 6,437,653 Undesignated 891,145 3 Total Equity and other Credits 7,433,872 3,864,347 5,472,514 Total Liabilities, Equity and Other Credits $8,870,404 $5,414,421 $9,044,037 (See notes to financial statements) 1,543,069 5,337,423 6,880,492 $8,614,685 18 EXHIBIT 1 Proprietary Fund Types Internal Enterprise Service Account Groups General General Fixed Long -Term Assets Debt Totals (Memorandum Only) December 31, 2041 2000 $2,394,189 $3,848,946 1,561,929 2,516,990 1,461,809 10,379 34,269 52,201 227,163 4,047,950 21,315 223 115,146 1,610,121 31 6,766 13,258 132,559 122,818 48,146,702 2,866,874 $28,006,847 $5,472,514 16,476, 649 $54,410,938 $9,256,447 $28,006,847 $21,949,163 $22,613,774 $9557,149 12,640,531 23,235,825 1 1,466,179 41 4,608 52,201 3,853,551 4,047,950 523,762 223 849,158 1,610,121 330,024 408,554 132,559 122,818 1,648,143 1,898,143 79,020,423 75,207,392 5,472,514 4,736,609 1 6,476,649 1 9,304,211 $145,526,943 $'141,681,092 $748,475 $1 6,066 28,006,847 $2,600,240 $2,345,470 93,302 32,887,652 30,018,102 133,302 81,103 21,315 6,097,387 10,092,915 523,762 223,929 51,961 9,401 $141,681,092 19 409,552 441,345 733,221 733,221 790,167 1,54901 1,549,681 1,423,243 18,833 18,833 22,795 950,000 1,648,143 108 4,827,444 4,224,260 $15,795,000 15,795,004 17,900,000 4 4,163 77,122 6,150,000 6,1 50,040 6,1 20,000 864,400 860,000 1,050,000 2,743,886 2,307,969 21,949,"! 63 35,253,341 36,397,577 22,295,175 2,931,171 $28,006,847 25,226,346 25,622,823 28,006,847 25 501,532 433,176 32,887,652 30,018,102 7,120,657 7,412,371 6,437,653 6,097,387 10,092,915 10,374,681 110,273,602 105,283,515 $145,526,943 $141,681,092 19 501,532 28,870,345 4,017,307 51,667,052 6,948,478 28,006,847 $54 $9,256,447 $28,046,847 $21,949,163 Revenues Taxes and special assessments Licenses and permits Intergovernmental Charges for services Court fines Investment earnings Change in fair value of investments Miscellaneous Total Revenues Exoen d itu res Current: General government Public safety Public works Community services Parks and recreation Economic development Non departmental Administrative Services Reimbursement Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess or Deficiency( of Revenues Over Expenditures Other Financina Uses( or Sources Proceeds from sale of bonds Sale of fixed assets Operating transfers in Operating transfers out Total Other Financing Uses( or Sources Excess or Deficiency( of Revenues and Other Sources Over Expenditures and Other Uses Fund Balances January 1 Equity Transfers (Out) In Fund Balances December 31 City of Brooklyn Center All Governmental Fund Types For the Year Ended December 31, 2001 2,504,392 Special Debt General Revenue Service $8,411,513 $4,144,215 $1,205,378 788,629 392,805 1,972,927 4,135,282 1,343,486 295,745 688,453 7 1,"188,882 230,408 779,060 7,515 1,339,093 345,438 192,359 121,235 328,391 207,173 99,968 24,057 11 3,904 12,408 14,952,171 6,001 ,137 1,722,326 2,504,392 Totals 5,66000 11,498 2,142,064 Projects 1 06,034 2600 2,205,018 187,150 392,805 1,972,927 372,056 632,549 (767,504) 5,824,513 7 1,"188,882 2,805,000 1 73,024 1,158,554 12,6'15,465 3,533,481 3,963,554 EXHIBIT 952,696 23,628,330 24,001,243 2,504,392 Totals 5,672,498 Capital (Memorandum Only) Projects 2001 2600 $102,172 $1 3,863,278 $13,586,195 2,763,028 788,629 632,549 50,009 5,824,513 7 7,275,675 688,453 779,060 7,515 1,339,093 230,408 180,676 351,259 1,020,291 1 426,857 1,062,389 (490,651) 12,408 150,369 125,012 952,696 23,628,330 24,001,243 2,504,392 2,429,196 5,672,498 5 2,142,064 2,100,865 1 06,034 95,148 2,392,168 2,344,758 2,365,732 2,763,028 372,056 419,789 (767,504) (795,737) 5,369,295 6558,177 7,275,675 2,805,000 3,970,000 7,515 1,339,093 1,295,938 5,376,810 25,489,310 27,351,813 2,336,706 2,467,656 (2,241,228) (4,424,114) (1,864,980) (3,350,570) 572,266 166,807 2,977,133 (1,661,877) (2,136,807) (1,661,877) (1,397,734) 2,977,133 674,829 1,069,922 735,905 7,452,043 2,794,425 4 (693,000) $7,433,872 $3,864,347 $5,472,514 730,000 730,000 735,000 572,266 194,491 980,244 4,124,1.84 5,479,120 (3,798,684) (5,404,122) 1,714,244 1,627,765 1,004,489 (2,71 3,870) (233,214) (2,346,081) 8,901,362 23,884,439 26,230,524 693,000 $6,880,492 $2301,225 $23,884,439 (See notes to financial statements) 20 EXHIBIT 3 Revenues Taxes and special assessments Licenses and permits Intergovernmental Charges for services Court fines Investment earnings Change in fair value of investments Miscellaneous Total Revenues Expenditures General govemment Public safety Public works Community services Parks and recreation Economic development Non departmental Admin. Services Reimbursement Total Expenditures Excess or Deficiency( of Revenues Over Expenditures Other Financing Uses( or Sources Sale of fixed assets Operating transfers in Operating transfers out Total other Financing Uses( or Sources Excess or Deficiency( of Revenues and Other Sources over Expenditures and other Uses Fund Balances January 1 Equity Transfer out Fund Balances December 31 City of Brooklyn Center `,OMBINED STATEMENT OF REVENUES, EXPENDITURES, JD CHANGES IN FUND BALANCES BUDGET AND ACTUAL General and Special Revenue Funds For the Year Ended December 31, 2001 General Fund Special Revenue Funds Actual over Actual over Under( Under(-) Budget Actual Budget Budget Actual Budget $8,558,675 $8,411,513 ($147,162) $4,364,080 $4,144,215 ($219,865) 556,165 788,629 232,464 4,129, 753 4,135,282 5,529 409,896 1,343,486 933,590 622,045 688,453 66,408 185,000 230 45,408 360,000 345,438 (14,562) 63,000 1 92,359 129,359 328,391 328,391 207,173 207,173 12,000 24,057 12,057 33 1 13,904 79,934 14,423,638 14,952,171 528,533 4,870,946 6,001,137 1,130,191 2,443,879 2,504,392 60,513 5,769,431 5,660,600 (108,831) 24,970 90,096 65,126 2,083,822 2,142,064 58,242 105,035 106,034 (1) 2,267,089 2,205,018 (62,071) 150,000 187,413 37,413 342,000 392,805 50,805 1 ,018,116 3,255,972 2,237,856 480,517 372,056 (108,461) (770,707) (767,504) 3,203 12,722,066 12,615,465 (106,601) 1,193,086 3,533,481 2,340,395 1,701,572 2,335,706 635,134 3,677,860 2,467,656 (1,210,204) 572,266 572,256 410,086 166,807 (243,279) (1,701,572) (1,661,877) 39,695 (2,380,086) (2,136,807) 243,279 (1,701,572) (1,661,877) 39,695 (1,970,000) (1,397,734) 572,266 674,829 674,829 1 ,707,860 1,069,922 (637,938) 7,452,043 7,452,043 2,794,425 2,794,425 (693,000) (693,400) $7,452,043 $7,433,872 ($18,171) $4,502,285 $3,864,347 ($637,938) (See notes to financial statements) 21 Operatina Expenses Personal services City of Brooklyn Center 409,406 EXH I BIT 4 3 COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES 426,605 250,085 IN RETAINED EARNINGS 650 Other services 2 Proprietary Fund Types 2,936,042 2 Insurance For the Year Ended December 31, 2991 51 133,586 113 Internal Totals 2 373 Enterprise Service (Memorandum Only) Operatina Revenues Funds Funds 2001 2900 Sales and user fees $13 $1,085,046 $1 4 $14,1 02 Cost of sales 31220,229 3,220 3,304 Net Operating Revenues 10,039 1,085 112124,588 10 Operatina Expenses Personal services 2 409,406 3,298,805 3 Supplies 426,605 250,085 676,690 650 Other services 2 65,585 2,936,042 2 Insurance 81,798 51 133,586 113 Utilities 370 2 373 336,257 Rent 226,659 226,659 193,774 Depreciation 1 552,091 1,844 1 Total Operating Expenses 8 1 ,584 9,489,450 9 Operating Income (Loss) 11881,676 (246,538) 1,635,138 1,364 Nonooeratinc Revenues or Expenses H, Investment earnings 222 277,381 499 580 Change in fair value of investments 225,952 265,439 491 (217 634) Special assessments 290,907 290,907 3539157 Other revenue 4 4 10,275 Interest and fiscal agent fees (55,138) (55,138) (83,507) Loss on sale of fixed assets (30,989) Total Net Nonoperating Revenue 688,971 542,820 1 611,929 Income Before Operating Transfers 21570,647 296,282 2 1,976 Operating Transfers Out (325,500) (325,500) (75,000) Net Income 2 296,282 2,541,429 1 Depreciation on contributed assets that reduces contributed capital 323,422 73,055 396,477 509,088 Retained Earnings January 1 26,803 3,647,970 30,451,278 28,041 ,030 Retained Earnings December 31 $29,371,877 $4,017,307 $33,389,184 $30,451 (See notes to financial statements) 22 City of Brooklyn Center EXHIBIT 5 COMBINED STATEMENT OF CASH FLOWS Proprietary Fund Types For the Year Ended December 31, 2001 (See notes to financial statements) 23 Internal Totals Enterprise Service (Memorandum Only) Cash flows from or)eratina activities: Funds Funds 2001 2000 Operating income (loss) $1,881,676 ($246,538) $1,635,138 $1,364,231 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,292,168 552,091 1,844,259 1 Changes in assets and liabilities: Receivables (52,598) (2 (54,963) (213,627) Inventories 80,515 (1,985) 78,530 45,360 Prepaid expenses (9,741) (9 2,325 Payables (377,118) (377,176) 110 Accrued expenses (109,006) 702,957 593,951 24,461 Accrued interest payable (3,962) (39962) (3,675) Accrued health insurance liability 126,438 126,438 53,352 Other nonoperating income 295,747 295,747 363,432 Net cash provided by operating activities 2,997,681 1,130,540 4,128,221 3,631,386 Cash flows from noncanital financina activities: Proceeds from borrowings due to other funds (63,321) (63,321) 54,636 Principal payments on long -term debt (56,302) (56,302) (56,302) Principal payments on advance from other funds (50,000) (50,000) (621,343) Interest paid on advance from other funds (515) Interest paid on due to other funds (23,848) Interest paid to other entities (1,972) (1,972) Operating transfers out (325,500) (325,500) (75,000) Net cash used for noncapital financing activities (497,095) (497,095) (692,372) Cash flows from capital and related financina activities: Capital contributions 23,605 Acquisition and construction of capital assets (2,545,415) (430,004) (2 (4,416,412) Proceeds of sale of fixed assets 221,241 Principal paid on revenue bonds (190,000) (190,000) (180,000) Interest paid on revenue bonds (53,166) (53,166) (59,144) Net cash used for capital and related financing activities (2,788,581) (430,004) (3 (4 Cash flows from investina activities: Investments purchased (99,636) (430,647) (534,283) (5,039,305) Investments sold or matured 1 2,193,995 3,928,596 6 Investment earnings 222,410 277,381 499,791 580,627 Net cash provided by investing activities 1,857,375 2,040,729 3,598,104 1,747,885 Net increase in cash and cash equivalents 1,569,380 2,741 4,310,645 276,189 Cash and cash equivalents at beginning of year 824,809 1,107,681 1,932,490 1 ,655,301 Cash and cash equivalents at end of year $2,394,189 $3,848,946 $5,243,135 $1,932,490 Non cash items: Change in fair value of investments $225,952 $265,439 $491,391 ($261 (See notes to financial statements) 23 City of Brooklyn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2001 Note 1: Summary of Significant Accounting Policies The city of Brooklyn Center, Minnesota (the city) was formed and operates pursuant to applicab a Minnesota aws and statutes. The governing body consists of a mayor and four city council members elected at arge to serve four -year staggered terms. A. Reporting Entity As required by accounting principles generally accepted in the United States of America, the City's financial statements include all funds and departments of the City and the city's component units. The component units discussed below are included in the City's reporting entity because of the significance of their operations or financial relationship with the city. BLENDED COMPONENT UNITS: Blended component units, although legally separate, are in substance, part of the government's operations; data from these units are combined with data of the primary government. These additional units are the Economic Development Authority (EDA) and the Housing and Redevelopment Authority (H RA) in and for the city of Brooklyn center. The governing board for each Authority is the City Counci The Counci reviews and approves the HRA tax evy and the city provides major community development financing for EDA and HRA activities. Debts issued for EDA and H,RA activities are City general obligations. A though the EDA and HRA are legally separate from the city, they are reported as part of the city because the governing boards are the same. Complete f nancia I statements for the EDA and HRA may be obtained at the city offices located at 0301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. 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. 24 Note 1: Surnmary of Sianificant Accounting Policies (cont'd) Local Government Information Systems Association (LOGIS): This consortium of approximately 29 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 2001 financia statements of the City is $377,221 for services provided, allocated to the various funds based on app ications and/or use of services. comp ete financia statements may be obtained at the LOGIS offices located at 5750 Du uth Street, Golden Va ey, Minnesota, 55422. LOGIS Insurance Group: This group provides cooperative purchasing of hea th and life insurance benefits for approximately 45 governmental entities. The total of 2001 health and life insurance costs paid by the city was $721,457. Complete financial statements may be obtained from DCA, Inc. located at 400 DCA center, 13100 Wayzata Boulevard, Minnetonka, MN 55305 -1840. OTHER: The Brooklyn center Fire Department Re ief Association (the Association): The Association is organized as a nonprofit organization, legs ly separate From the City, by its members to provide pension and other benefits to such 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 financia statements. Al funding is conducted in accordance with applicab a 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 evies to Hennepin county directly if the city does not carry out t wMis function. Because the Association is fisca y independent of t ie city, the financia information of the Association has not been inc uded within tie city's financial statements. (See Note 15 for disclosures relating to the pension plan operated by the Association.) The city's portion of the costs of the Association's pension benefits is included in the General Fund under public safety. complete financial statements for the Association may be obtained at the City offices located at 5301 Shing a creek Parkway, Brooklyn center, Minnesota 55430. 25 Note 1: Summary of Significant Accounting Po icies (cont'd), B. Fund Accounting The accounts of the city are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted forwith a separate set of self balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund types and two broad fund categories as follows: GOVERNMENTAL FUNDS: General Fund The General Fund is the general operating fund of the city. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Projects Funds capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capita facilities, other than those financed by proprietary funds. PROPR ETARY FUNDS: Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner simi arto private business enterprises -where the intent is that the costs (expenses, inc uding depreciation) of providing goods or services to the general pubic on a continuing basis be financed or recovered primarily through user charges. Interna Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. M91 Note 1: Summary of Siqnificant Accountinq Policies (cont'd) C. Fixed Assets and Lonq -Term Liabilities The accounting and reporting of fixed assets and long -term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement, which means that only current assets and current iabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "ava.ilable spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, ratherthan in the governmenta funds. Public domain general fixed assets consisting of certain improvements other than bui dings, inc uding roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have been excluded from general fixed assets, as such items are immovable and of value only to the city. No depreciation has been provided on general fixed assets. A fixed assets are valued at historical cost or estimated historica cost if historical cost is unavailable. Donated fixed assets are valued at their estimated market value as of the date donated. The fixed assets of the proprietary funds are depreciated using the straight -line method over the estimated useful Ives of the assets. The estimated useful lives are as follows: Water sewer Mains Lines 99 years Buildings and Structures 20 -40 years Water Wells and Storage Tanks 15 -50 years Sewer Lift Stations 15-40 years Machinery and Equipment 5 -20 years Furniture and Fixtures 5 -20 years Long -term iabilities that are expected to be financed from governmental funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. 27 Note 1: Summary of Sianificant Accounting Policies (cont'dl All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, a assets and all liabilities associated with the operations of these funds are included on the balance sheet. Fund equity (e.g., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund -type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. D. Basis of Accountinq Governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Available means co ectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual include icenses and permits, fees, and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Interest on special assessments is recognized as revenue when due, net of delinquencies. Expenditures are generally recognized under the modified accrua basis of accounting when the related fund liability is incurred, except for principal and interest on general long -term debt which is recognized when due. A proprietary funds are accounted for using the accrua basis of accou nting. Their revenues are recognized when they are earned, and expenses are recognized when they are incurred. Unbilled Water and Sewer Fund utility service receivables are recorded at year -end. The City applies all applicab a Financial Accounting Standards Board (FASB) pronouncements issued prior to November 30, 1989 in accounting for its proprietary operations. E. Budgets and Budqetary Accountinq The City follows these procedures establishing the budgetary data reflected in the financia statements: 1. In August, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The operating budgets include expenditures and the means of financing them. 2. The County mails individual property tax notices showing the taxes that woUld result from the proposed budgets of all taxing units to each property owner in November. W Note 1: Su mmary of Sianificant Accou ntinq Policies (cont'd) 3. Public hearings are conducted to obtain taxpayer comments. 4. The budgets are legally enacted with the passage of resolutions by the City Council in the month of December. 6. The city council must authorize any transfer of budgeted amounts between departments within the General Fund. A transfer of budgeted amounts within individual departments must be authorized by the city Manager. 6. Supp ementa appropriations during the year may on y be made by the City Council. These amounts must be financed by funds from the contingency reserve set up in the General Fund or by additional revenues. 7. All budget amounts lapse at the end of the year to the extent they have not been expended or re- encumbered by city council directive in the following fiscal year. 8. Formal budgetary integration is emp oyed as a management contro device during the year for all governmental funds with the exception of Debt service Funds and capital Projects Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for capital Projects Funds is accomplished through the use of project controls and project- ength budgets. g. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for al governmenta funds except for the project- ength capita Projects Funds and the Debt Service Funds. 10. Budgetary control is maintained at the department level for the General Fund and at the fund level for a I other governmental funds that adopt annua budgets. I I. Budgeted amounts are as originally adopted, or as amended by the city Counci Individual and aggregate amendments were not material in re ation to the origina appropriations. F. Cash, Cash Eauiva ents and nvestments Cash ba ances from a I funds are combined and invested to the extent availab a in authorized investments (see Note 2 Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Cash and investments are stated at fair value. Unless individual investments become impaired, a I certificates of deposit with a maturity of one year 29 Note 1: Summary of Significant Accountinq Policies (cont'd), or less when purchased are stated at amortized cost which approximates market value. All highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. G. Inventories and Supplies nventories in the proprietary funds are va ued at cost, using the weighted average method in the Municipal Liquor Fund and the first -in /first -out (FIFO) method in the other proprietary funds. The costs of governmenta fund type supplies are recorded as expenditures when purchased. H. Accrued Vacation and Sick Pav The city pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expenditure /expense as it is earned and accounted for in the Compensated Absences Fund, an interns service fund estab fished for that purpose. I. Fund Equity contributed capital is recorded in proprietary funds that have received capital grants or contributions from deve oilers, customers, or other funds. Reserves represent those portions of fund equity not available for appropriation or expenditure, or legally segregated for a specific future use. Designated fund balance represents tentative p ans for future use of financia resources. J. Property Tax Property tax levies are set by the city council in December of each year and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The county spreads all levies over taxable property. Such taxes become liens on properties on January 1 in the year of collection. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real estate property taxes may be paid by taxpayers in two equal insta Iments on May 15 and October 15. Persona property taxes may be paid on February 28 and June 30. The county provides tax sett ements to cities and other taxing districts two times a year, in July and December. 30 Note 1: Summary of Significant Accountinq Policies (cont'd), Taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fu y offset by deferred revenue because they are not known to be avai able to finance current expenditures. In addition, at December 31, 2001 the city has recorded $200,343 in deferred revenue for the General Fund for estimated property tax abatements on properties whose value is under appeal that are anticipated to be repaid to the County in future years. K. Total Columns on combined Statements Tota co urnns on the combined Statements are captioned "Memorandum on Y" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, resu is of operations or cash flows in conformity with accounting principles generally accepted in the United States of America. I nterfund a iminations have not been made in the aggregation of this data. L. New Accounting Pronouncement n J u ne 1999, the GASB issued statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Govemments. This statement is effective for the city for. the year ending December 31, 2003. Statement No. 34 will affect the presentation of the city's annual financial report. The statement also requires the city to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City has not yet determined the effects Statement No. 34 will have on its financial statements. Note 2: cash and Investments Der)osits In accordance with Minnesota Statutes, the city maintains deposits at those depository banks authorized by the city council. All such depositories are members of the Federal Reserve system. Minnesota statutes require that all city deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. 31 Note 2: Cash and Investments (cont'd) Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or ocal government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or with a financial institution other than that furnishing the collateral. Credit Risk Category Bank carrying Balances Amount (1) nsured or co atera ized by securities he d by the City or its agent in the City's name $114,086 $115,408 (2) collateralized with securities held by the pledging institution's trust department in the City's name 1 481,388 (3) Unco ateralized or collatera ized with securities held by the p edging institution but not in the City's name $1,493,3 $597,7 B. nvestments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: a Direct obligations or obligations guaranteed by the United States or its agencies. b Shares of investment companies registered under the Federal nvestment company Act of 1940 and whose only investments are in securities described in (a) above. c General obligations of the State of Minnesota or any of its municipalities. d Banker's acceptances of United States banks a igible for purchase by the Federal Reserve System. e Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capita ization exceeding $10,000,000, a primary reporting dea er in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker dealers. 32 Note 2: Cash and Investments (cont'd} The City has not purchased any collateralized mortgage obligations, derivatives or strip investments. The city does not purchase individual commercial paper issues; commercial paper is only held through shares of money market pools that invest in multiple issues. Investments are typically held to maturity. Of the City's portfolio as of December 31, 2001, 40% matures within 1 year, another 52% matures in the second year, and 8% matures in eight years. The city participates in an external investment pool sponsored by the League of Minnesota Cities. The pool is established in accordance with Minnesota Statutes, Section 471.59. Only municipalities as defined by State Statute are permitted to participate in the fund. As of December 31, 2001, the fair value of the City's position in the pool is the same as the value of the pool snares. The City's investments are categorized below to give an indication of the level of custodial credit risk assumed at year -end. category 1 includes investments that are insured or registered or for which the securities are held by the city or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the city's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the City's name. Balances at December 31, 2001: Carrying Credit Risk category Amount/ Securities Type 1 2 3 Fair Value Investments categorized: Negotiable certificates of Deposit $2 $2,927,477 U.S. Government 5,959,158 5 Federal agencies 3,629,966 3,629,966 $12,516,601 12 Investment pools 22 Total investments 34,644 Deposits 597,774 Petty cash /change funds 12 Total cash and investments $35 33 Note 3: Fined Assets Changes in the General Fixed Assets Account Group during 2001 were as follows: Balance The following is a summary of proprietary fund -type fixed assets at December 31, 2001: Jan. 1, 2001 Additions Disposals Land $3,551 $95 Funds Buildings Improvements 15,686 212379949 $30,305 Park Improvements 3,701 270 Buildings Improvements Furniture Fixtures 1,263, 568 102 66,725 Departmental Equipment 1 142 69,489 TOTAL GENERAL FIXED 61, 517, 824 5 Less accumulated depreciation ASSETS $25,324,975 $2,848 $166,519 The following is a summary of proprietary fund -type fixed assets at December 31, 2001: Note 4: Contributed Capital During 2001 contributed capital changed by the following amounts: Enterprise Funds Deductions: Depreciation on contributed assets Net change Contributed capital, January 1, 2001 Contributed capital, December 31, 2001 ($323,422) (323,422) 22,618,597 Internal Service Funds ($73,055) (73,055) 3,004,226 $22,295,175 $2,931,171 Balance Dec. 31, 2001 $3,646,630 17,894,507 3,971,979 1,299,232 1,194,499 $2$ M Internal Enterprise Service Funds Funds Land $3,198,651 Land improvements 491 Buildings Improvements 24 Mains Lines 35,738 Departmental Equipment 1 $5 Total 61, 517, 824 5 Less accumulated depreciation (13,371,122) (3,067,896) Net $48 $2 Note 4: Contributed Capital During 2001 contributed capital changed by the following amounts: Enterprise Funds Deductions: Depreciation on contributed assets Net change Contributed capital, January 1, 2001 Contributed capital, December 31, 2001 ($323,422) (323,422) 22,618,597 Internal Service Funds ($73,055) (73,055) 3,004,226 $22,295,175 $2,931,171 Balance Dec. 31, 2001 $3,646,630 17,894,507 3,971,979 1,299,232 1,194,499 $2$ M Note 5: Operating Leases The city leased space for the operation of two municipal liquor stores in 2001. The first of these leases ended in March 2001 and was not renewed because The City discontinued iquor sales at this ocation. The second was a ten -year lease, which began in June 2000, with the option of a ten --year extension. This ease provides for a minimum monthly base rent payment, plus a pro -rata share of common area expenses. n addition, it requires additiona ease payments if agreed upon revenue thresho ds are attained. This lease may be cancelled at the city's option if the city ceases liquor operations. Total rental expense under the lease agreements for the years ended December 31 200 1 and 2000 was $140,873 and $117,659, respectively. Future minimum rent payments under the current agreement are as fol ows: Year Endinq, 2002 -2004 2005 2006-2009 2010 Amount 91 ,350 per year 98,225 100, 170 per year 44,798 $815.754 The Earle Brown Heritage Center Fund, which operates as an enterprise fund, eased space to two tenants in 2001. one tenant signed a lease for a ten -year period commencing January 1, 1999. Another tenant has signed two separate eases, both of which are renewable automatically for one -year terms. The first lease began April 15, 1 999 and is for $1 9,200 per year. The second lease began January I, 2000 and is for $3,500 per year. Payment from this tenant wi be in the form of audiolvisua equipment trade -out. This equipment will be used by the Heritage Center for client events. Rental revenues and expenses under the ease agreements were as follows: 2001 2000 Renta Revenues $62,629 Renta Expenses $26,688 Future minimum rentals to be received are as follows: YEAR 2002 2003 2004 2005 2006 2007 2008 CASH $39,660 $39,912 $40,020 $41,200 $41,307 $42,488 $38,947 TRADE- $22,$OO OUT 35 Note 6: Long -Term Debt The City's long-term debt includes general obligation bonds, tax increment bonds, and special assessment improvement bonds, all of which are recorded in the General Long -Term Debt Account Group. In addition, the City issued storm sewer revenue bonds which are recorded as a liability in the Storm Drainage Fund. The following is a summary of bond transactions for the year ended December 31, 2001: Bonds payable January 1 Bonds issued Bonds retired Bonds payable December 31 General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total $8,760,000 $9,140,000 $6,120,000 $1 $25 2003 1 1 730,000 239,540 730,000 655,000 1 700,000 190,000 2 $8,105,000 $7,690 $6,150,000 $860,000 $22,805,000 The annual requirements to amortize all outstanding debt as of December 31, 2001, including interest of $5,100,930, are as follows: General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total 2002 $1,030,749 $1,973 $'1,029,498 $240,100 $4 2003 1 1 1 239,540 4 2004 1 2 1 238,250 4 2005 1 ,035,374 531 ,123 1 236,210 2 2005 1 ,036,412 507,362 864,846 2 2007 on 5,176, 962 2 2 9 173 $10 $9,366,609 $7,246,050 $954,100 $27,905,930 If special assessments are not adequate to retire the outstanding debt, the City's full faith and credit are pledged for their redemption. The general obligation, tax increment, and storm sewer revenue bonds are backed by the full faith and credit of the City. 36 Mote 6: Lono Term Debt (cont'd), Long -term debt obligations outstanding at year -end are summarized as follows: Bond Payment Issue Maturity Rates Dates Date Date General Obligation Bonds 02 -01 -05 Refunding State -Aid Street Bonds 3.55 -4.0 4 -01 10 -01 Police and Fire Building Bonds 4.1 -4.9 2 -01 8 -01 Total 02 -01 -08 General Obligation Tax Increment Bonds 1991 Tax Increment Bonds 4.7 -6.0 2 -01 8 -01 1992 Refunding Tax Increment 4.5 -5.6 2 -01 8-01 1995 Taxable Tax Increment Bonds 6.0 -5.75 2 -01 8 -01 Total General Obligation Special Assessment Bonds 1994 Street Improvement Bonds 4.1 -5.5 2 -01 8-01 1995 Street Improvement Bonds 4.0 -4.9 2 -01 8 -01 1996 Street Improvement Bonds 4.2 -5.1 2 -01 8 -01 1997 Street Improvement Bonds 4.0 -4.7 2 -01 8 -01 1996 Street Improvement Bonds 3.44.2 2 -01 8 -01 1999 Street Improvement Bonds 4.1 -5.0 2 -01 8 -01 2000 Street Improvement Bonds 4.3 -4.9 2 -01 8 -01 2001 Street Improvement Bonds 2.6 -4.4 2 -01 8 -01 Total General Obligation Revenue Bonds 1994 Storm Sewer Revenue Bonds 4.2 -5.4 2-018-01 Total 12 -01 -98 04 -01 -06 12 -01 -97 02 -01 -13 03 -01 -91 02 -01 -04 02 -01 -92 02 -01 -03 11 -01 -95 02 -01 -11 08 -01 -94 02 -01 -05 11 -01 -95 02 -01 -06 11 -01 -96 02 -01 -07 12 -01 -97 02 -01 -08 12 -01 -98 02 -01 -09 12 -01 -99 02 -01 -10 12 -01 -00 02-01 -11 12 -01 -01 02 -01 -12 08 -01 -94 02- 011 -05 Authorized And Issued Retired $1, 585, 000 $240,000 7,900,000 $1,140,000 $9 $1,380,000 $6,050,000 $3 4 2,720,000 4,560,000 820,000 $14,880,000 $7,190,000 $835,000 $475,000 780,000 360,000 1,440,000 530,000 1 345,000 1 240,000 1, 585, 000 165,000 735,000 730,000 $8,255,000 $2,115,000 $1,830,000 $970,000 $1,830,000 $970,000 37 Outstanding $1,345,000 6,760,000 $8,105,000 $2,400,000 1 3,740,000 $7,690,000 $360,000 420,004 910,oOo 730,000 845,000 1,420,0100 735,004 730,000 $6,150,000 $860,000 $860,000 Note 6: Lonq Term Debt (cont'd) In addition to the bonded debt listed above, the City of Brooklyn Center has an amount recorded as "Other long term liabilities." This is a loan extended to the City by Northern States Power for the purpose of promoting energy conservation improvements to City owned facilities. The loan is recorded in the General Longterm Debt Croup of Accounts and was used for installation of low energy lamps in traffic signals. It will be repaid by the General Fund in 41 monthly installments of $1,388 which commenced on November 4, 1998. General Long -Term Debt Other long term liabilities payable January 1 $20 Liabilities retired during 2001 (16,656) Other long term liabilities payable December 31 $4J63 Conduit debt obligations From time to tune, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds to provide assistance to private sector entities for the acquisition and construction of housing, industrial, and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2001, there were five series of Housing Revenue or Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of approximately $25 S ct'o'l u r) P. Cr) C� 6 to cr� V*l co CO C( to )U') co U") Ci al CO 00 UO) C%4 C�t Cf) CO 1 L U') C 4 U") CD c C 0 0 C'4 U en Q0 (o -COO cr O r -cr CD N W- No. O U CD ul U) N. co (D 0 C:) C%4 to VOW s! to c U VO* OD cr) cr) 121 U- bat p N 00 S C A d) u ri 3: C: Ol "0 VOO, 3; C: Sk C:) o 'o c of 03 OD Ul Vol CD ce) No $WW C-A 0) U") cr) U") ce) Jo- 0 Vol 0 Ul Vol vo Vol u to� VII to Vol 43) C e 0 WOW 0 Ck. L 5 r- Ul 0 co 0 0 0 So ca moo" 0 0 0 0 -ra woo. 4) ul 0 c p 0) CL. Ce 0 C 0 (D 0 o B Q. 16 0) 0 0 39 Note 8: Reserved Desianated Fund Eauitv Fund balances and retained earnings in the various funds have been reserved or designated for the following purposes: Reserved Fund Ea uity Retained Earnings: Enterprise Funds: Water Utility Fund Special Assessments Sanitary Sewer Fund Special Assessments Storm Drainage Fund Debt Service Special Assessments Total Reserved Retained Earnings Fund Balances: General Fund: Advances to Other Funds Debt Service Funds: General Obligation Bonds Debt Service Tax Increment Bonds Debt Service Special Assessment Bonds Debt Service Total Debt Service Funds Capital Projects Funds: Capital Improvements Fund Advances to Other Funds Municipal State Aid for Construction Fund Advances to other Funds Total Capital Projects Funds Total Reserved Fund Balances Total Reserved Fund Equity Desiq nated Fund Eq u itv General Fund: Working Capital Total General Fund $239,328 3 240,100 18,365 501,532 105,074 831,588 2,'184,523 2,455,303 5 950,000 593,069 1 7,120,557 $7,522,189 $5,437,553 $5,437,553 40 Note 9: nterfund Receivables and Pavab es Due to/from other funds are short -term receivab eslpayables. Advances to/from other funds are considered long -term receivableslpayables. Advances have maturities extending through the year 2917. Advances between funds are offset by a fund ba a nce reserve account and are not expendable or avai ab a financial resources. Advance and due to amounts are subtracted from the respective funds' monthly cash balances which form the basis for interest allocation, Subsequently, these liabilities result in an interest rate charge equal to the city's investment return. Negative cash balances result in interest charges for affected funds. Due from Due to Other Funds other Funds Special Revenue Funds: Tax Increment #3 Fund 502 Earle Brown Farm Tax Increment Fund 502,447 Enterprise Funds: Water Utility Fund 21,315 Storm Drainage Fund 21,315 Total 523,762 523,762 41 Advances to Advances from Other Funds other Funds General Fund 1 05,074 Special Revenue Funds: Earle Brown Farm Tax Increment Fund 698,143 Capital Projects Funds: Capital Improvements Fund 950,009 Municipal State Aid construction Fund 593 Enterprise Funds: Golf course Fund 950,040 Total 1 1 41 Note 10: Individual Fund Disclosures A deficit fund balance exists at December 31, 2061 in the following Special Revenue Fund: Earle Brown Tax Increment Financing District: Unreserved deficit fund ba ance $1,202,247 This deficit is being funded through internal borrowing and will be repaid from future surplus tax increments. Excess of Expenditures over Appropriations: For the year ended December 31, 2001, expenditures exceeded budget at the department level for the Genera Fund or the fund level for all other funds (i.e., the ega eve of budgetary contro )as fo ows: General Fund Departments: Finance $11,813 Legal 22,061 Government Buildings 69 Data Processing 482 Fire Protection 7 Engineering 7,341 Streets 50,901 General Recreation Programs 91592 Community center 65,844 Convention Bureau 50,805 Administrative Reimbursement 31203 Soecaa Revenue Funds: Economic Development Authority $1 Earle Brown Tax Increment District 27,886 Tax Increment District No. 3 403,067 Police Drug Forfeiture 17,328 City Initiatives Grant 119 Note 11: Continoencies and Commitments There are several lawsuits pending in which the City is invo ved. city management estimates that the potential claims against the city not covered by insurance resulting from such litigation would not materially affect the City's financial position. The city has approximately $1.5 million in contractual commitments re ated to current projects. 42 Note 12: 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 for which the City carries commercial insurance po icies. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is considered immaterial to the financial statements. 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. Note 13: Post- Emploument Health Care Benefits The City has provided post retirement hea th care benefits, as per the requirements of a city council resolution, for certain retirees and their dependents since 1986. Full time employees have the option of retaining membership in the city's health insurance plan for which the city wi I pay the single person premium until such time as the retiree is eligib a for Medicare coverage or at age 65, whichever is sooner. If the retiree desires to continue family coverage, the additional cost for family coverage sha I be paid by the retiree to the City. There are two methods whereby an employee can qualify under this program. First, the emp oyee, on the date of his/her retirement, must meet a igibi ity requirements for a fu I retirement annuity under PERA (Note 14A) without reduction of benefits because of age, disabi ity, or any other reason for reduction. In addition, the employee must have been employed full time by the City for the last ten consecutive years prior to the effective date of retirement. Additionally, employees who are retiring after twenty -five years of consecutive service with the City and are eligible to receive a pension from PERA shall have the option of retaining membership in the City's health insurance plan for which the employee will pay the premium until such time as the retiree is eligible to receive a full- retirement annuity under PERA or PERA police. At that time, the City wi I pay the single- person premium unti such time as the retiree is a igible for Medicare coverage or at age 65, whichever is sooner. Employees participate in this program on a voluntary basis. As of December 31, 2001, eight employees currently participate in this program. The cost of City paid health care premiums for the years ended December 31, 2001 and 2000 was $24,520 and $17,715, respectively. The $1,549,681 recorded as a liability reflects the city's current balance accrued for this obligation. The liability will be analyzed on an ongoing basis. 43 Note 14: Defined Benefit Pension Plans Statewide A. Plan Description All full -time and certain part -time employees of the city of Brooklyn Center are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Po ice and Fire Fund (PEPFF), which are cost sharing, multiple- employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 355. PERF members be ong to either the coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute are covered by the PEPFF. 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 member's highest average salary for any five successive years of a owable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERF's coordinated and Basic members. The retiring member receives the higher of step rate benefit accrual formula (Method 1 or a leve accrua formula (Method 2). Under Method 1, the annu ity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For all PEPFF members and PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced annuity is also available to eligible members seeking early retirement. There are different types of annuities availab a to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree no survivor annuity is payable. There are also various types of joint and survivor annuity options availab a which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may a so eave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, before retirement benefits begin. 44 Note 14: Defined Benefit Pension Plans Statewide (cont'd) The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their pub is 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, 514 St. Peter street, #200, St. Papa Minnesota, 55102 or by ca i ng (651) 296 -7460 or 1 -800- 552 -9026. B. Fundinc Policv Minnesota statutes Chapter 353 sets the rate for employer and emp oyee contributions. These statutes are estab ished and amended by the state Legislature. The City makes annual contributions to the pension plans equal to the amount required by State statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75 respectively, of their annual covered sa ary. PEPFF members are required to contribute 7.50% of their annual covered salary. The City of Brooklyn Center is required to contribute the following percentages of annua covered payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and 11.40% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ended December 31, 2001, 2000, and 1990 were $290,052, $299,879, and $285,779, respectively. The City's contributions to the Public Employees Police Fire Fund for the years ended December 31, 2901, 2000, and 1999 were $239,799, $223,541, and $254,859, respectively. The City's contributions were equa to the contractua ly required contributions for each year as set by state Statute. Note 15; Pension Plan Brooklyn Center Fire Department Relief Association Plan Description The City contributes to the Brooklyn Center Fire Department Re ief Association (the Association) which is the administrator of a single employer retirement system to provide a retirement p an (the P an) to volunteer fire fighters of the City who are members of the Association. The Association issues a financial report which is available at City offices. Fundinq Policv and Annual Pension Cost 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 ess anticipated state aids. 45 Note 15: Pension Plan Brooklyn Center Fire Department Relief Association (cont'd) Contributions: Total contributions to the Plan in 2001 were $11 8,508, of which $28,360 was levied by the City of Brooklyn Center and $90,148 was from the State of Minnesota. The actuarially determined contribution based on an actuarial valuation performed at January 1, 2001 was $56,879, which represents funding for normal cost of $45,795 and administration of $1 1,084. 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. They do not constitute an asset of the city. Annual pension cost and changes in the net pension obligation during the year were as follows: Annua Required contribution $73,563 Interest on Net Pension obligation 11 Adjustments to the Annual Required Contribution (27,768) Annual Pension Cost 56 Contributions Made 118,508 Increase in Negative Net Pension obligation 61,629 Beginning Balance, Negative Net Pension obligation 621,028 Ending Balance, Negative Net Pension Obligation 682,657 The information be ow is the most recent data availab e. Actuarial valuation date: Actuarial cost method: Amortization method: Remaining amortization period: Actuaria assumptions: Investment rate of return Discount rate for obligations Projected salary increases Post retirement benefits Three -vear Trend Information Annual Pension cost Year Ended (APC) APC Contributed 12/31/98 $95,176 $107,215 12/31/99 $96,617 $116,570 12/31100 $96,6117 $120,175 1/1/01. Entry age normal cost method. Level dollar amount amortized on a closed basis. 18 years. 7.5% compounded annually. 7.5 Not applicable. None. Percentage of APC contributed 112.64% 120.65% 124.38% Negative Net Pension Obligation $438,538 $789,400 $621,028 46 Note 15: Pension Plan Brooklvn Center Fire Department Relief Association (cont'd) Schedule of Fundinc Procress Re ated Partv nvestments Funded Ratio A/B 116.8% 131.2% 125.3% As of December 31, 2001, the Association held no securities issued by the city or other related parties. Note 15: Fund Chances The following funds were opened during 2001; Debt Service: GC Street improvement Bonds of 2001 Fund Internal Service: Compensated Absences Fund No funds were closed during 2001. Note 17: Residual Eauitv Transfers The General Fund transferred $488,000 to the Capital Improvements capita Projects Fund and $225,000 to the Special Assessment Construction capital Projects Fund. The transfers represent funds from the prior year's surplus of revenues over expenditures. The funds will be used forfuture park, building and street improvements. The amounts are not expected to be repaid and are ref ected as residua equity transfers in the city's financial statements, 47 Actuarial Excess of Actuarial Value Accrued Assets over Funded Fiscal of Assets Liability Liability Year (A) (B) (A) -(B) 1998 $3,056,voo $2 $438,538 1999 $3,319,342 $2,529,942 $789,400 2000 $3,078,183 $2,457,135 $821,028 Re ated Partv nvestments Funded Ratio A/B 116.8% 131.2% 125.3% As of December 31, 2001, the Association held no securities issued by the city or other related parties. Note 15: Fund Chances The following funds were opened during 2001; Debt Service: GC Street improvement Bonds of 2001 Fund Internal Service: Compensated Absences Fund No funds were closed during 2001. Note 17: Residual Eauitv Transfers The General Fund transferred $488,000 to the Capital Improvements capita Projects Fund and $225,000 to the Special Assessment Construction capital Projects Fund. The transfers represent funds from the prior year's surplus of revenues over expenditures. The funds will be used forfuture park, building and street improvements. The amounts are not expected to be repaid and are ref ected as residua equity transfers in the city's financial statements, 47 City of Brooklyn center, Minnesota GENERAL FUND The City of Brooklyn Center Home Rule Charter provides in Section 7.11 that "there shall be maintained in the City Treasury a classification of Funds which sha I provide for a General Fund for the payment of such expenses of the city as the council may deem proper, and such other funds as may be required by statute, ordinance or resolution." The General Fund was established to account for all revenues and expenditures which are not required to be accounted for in other funds. It has more diverse revenue sources than other funds. These revenue sources include property taxes, icenses, permits, fines and forfeits, intergovernmental, service charges, and investment earnings. The Fund's resources finance a wide range of functions, including the current operations of general government, public safety, public works, health and welfare, recreation, and non departmental expenditures. This fund uti izes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related iabi ity is incurred. City of Brooklyn Center General Fund COMPARATIVE BALANCE SHEET December 31, 200 1 A -1 2001 2000 ASSETS Cash and cash equivalents $5,060, $1,887,383 Investments 3 61811,176 Accounts receivable 67,160 78,883 Delinquent taxes receivable 263,126 68,299 Due from other governments 65,190 105,902 Advance to other funds 105,074 105,074 TOTAL ASSETS $8,870,404 $9,056,717 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $508,939 $313,966 Accrued salaries payable 335,501 372,090 Accrued vacation and sick pay 641,486 Deferred revenue 325 68 Deferred revenue tax abatements 266,343 208 Total Liabilities 1,436,532 1 Fund Balance: Reserved for advances to other funds 105,074 105,074 Unreserved fund balance Designated: Working capital 6 6 Undesignated 891 1,249,582 Total Fund Balance 7 7 TOTAL LIABILITIES AND FUND BALANCE $8,870,404 $9,056,717 49 City of Brooklyn Center General Fund COMPARATIVE STATEMEIVT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 A -2 Expenditures General government 2 2001 60,513 2 Public safety 5,769 5 Actual Over 5,437 Public works 2,083 2 (Under) 2000 Community services Budget Actual Budget Actual Revenues 2 2 (62,071) 2,216,098 Property taxes $8,558,675 $8,469,023 ($89,652) $8,703,772 Property tax abatements reserve 480 (57,510) (57,510) 41 Licenses and permits 556,165 788 232 632,549 Intergovernmental 4 4 35 51529 41076 Charges for services 622 688,453 66 779,060 Court fines 185,000 230,408 45,408 180,676 Investment earnings 360,000 345,438 (14,562) 378,481 Change in fair value of investments (1 328,391 328,391 (153,454) Miscellaneous 12,000 24 12,057 9 Total Revenues 14 14,952,171 528,533 14,648,366 Expenditures General government 2 2 60,513 2 Public safety 5,769 5 (108,831) 5,437 Public works 2,083 2 58,242 2,100,865 Community services 106,035 106,034 (1) 95 Parks and recreation 2 2 (62,071) 2,216,098 Economic development 342,000 392,805 50,805 397,507 Non departmental 480 372,056 (108,461) 419,789 Administrative Services Reimbursement (770,707) (767,504) 3,203 (795,737) Total Expenditures 12,722 12 (106,60'1) 12,292,792 Excess of Revenues Over Expenditures 1 ,701,572 2,336,706 635,134 21355,574 Other Financinq Uses Operating transfers out {1,701,572} (1,661,877) 39,695 (1,532,2381 Total Other Financing Uses (1 (1 39 (11532 Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 674,829 6749829 823,336 Fund Balance January 1 7 7 7,308,707 Equity Transfers Out (693,000) (693,000) (680,0001 Fund Balance December 31 $7,452,043 $7 ($18,171) $7 50 S -1 (Continued next page) City of Brooklyn Center General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 Actual Over (Under) 2000 Budget Actual Budget Actual Ad Valorem Taxes Gross property taxes $7,838,675 $7,635,539 ($203,136) $7,807,516 Penalties and interest 1,623 1,623 55,900 Lodging tax 720,000 826,957 106,957 836,857 Special assessments 4,904 4,904 3,499 Total Taxes 8,558,675 8,469,023 (89,652) 8,703,772 Reserve for Propertv Tax Abatements Tax abatements under litigation (57,510) (57,510) 41,400 Total Property Tax Abatements (57,510) (57,510) 41,400 Licenses and Permits Liquor and beer 99,900 104,219 4,319 100,575 Building permits 305,000 497,283 192,283 353,915 Mechanical permits 50,000 77,806 27,806 60,874 Sewer and water permits 1,000 904 (96) 1,073 Plumbing permits 35,000 40,823 5,823 31,204 Garbage licenses 2,955 3,130 175 3,141 Taxicab licenses 750 1,000 250 625 Mechanical licenses 4,800 6,025 1,225 5,825 Pawn shop licenses 12,000 12,000 0 12,000 Service station licenses 3,495 2,877 (618) 2,140 Vehicle dealer licenses 1,750 2,250 500 1,750 Bowling licenses 480 725 245 720 Cigarette licenses 4,050 4,090 40 3,150 Sign permits 3,000 3,715 715 4,316 Rental dwelling permits 21,000 24,004 3,004 40,715 Amusement licenses 2,485 1,369 (1,116) 2,668 Dog licenses 6,000 4,079 (1,921) 3,866 Miscellaneous business license 2,500 2,330 (170) 3,992 Total Licenses and Permits 556,165 788,629 232,464 632,549 Interaovernmental Federal grants: Miscellaneous grants 5,000 4,555 (445) 4,737 Total Federal Grants $5,000 $4,555 ($445) $4,737 51 S -1 (Continued from prior page) City of Brooklyn Center General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 Actual Over (Under) 2000 Budget Actual Budget Actual Intergovernmental (continued) State grants: Local government aid $2,179,744 $2,179,744 $2,122,635 Homestead credit aid 1,380,106 1,380,106 1,379,768 Police pension aid 230,695 228,208 ($2,487) 258,973 PERA aid 34,365 34,365 34,365 Fireperson pension aid 89,484 90,148 664 92,155 Police training 14,000 19,166 5,166 16,326 E -911 phone service 18,000 18,296 296 19,229 Street maintenance aid 90,000 90,000 90,000 Low income housing aid 87,739 87,738 (1) 56,892 Miscellaneous grants 620 2,956 2,336 1,089 Total State Grants 4,124,753 4,130,727 5,974 4,071,432 Total Intergovernmental 4,129,753 4,135,282 5,529 4,076,169 Charges for Services General government charges 30,000 39,301 9,301 51,016 Public safety charges 37,000 30,760 (6,240) 40,436 Recreation fees 555,045 618,392 63,347 687,608 Total Charges for Services 622,045 688,453 66,408 779,060 Court Fines Fines 185,000 230,408 45,408 180,676 Total Court Fines 185,000 230,408 45,408 180,676 Miscellaneous Interest on investments 360,000 345,438 (14,562) 378,481 Change in fair value of investments 328,391 328,391 (153,454) Other 12,000 24,057 12,057 9,713 Total Miscellaneous 372,000 697,886 325,886 234,740 Total Revenues $14,423,638 $14,952,171 $528,533 $14,648,366 52 X7`2 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF EXPEIVDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 Actual Over (Under) 2000 Budget Actual Budget Actual General Government Mayor and Council: Personal services $45,317 $42,927 ($2,390) $44,899 Supplies 1,550 691 (859) 2,892 Services and other charges 77,400 78,828 1 70,258 Total Mayor and Council 124,267 122,446 (1 114,049 Administrative Office: Personal services 382,527 377,646 (4 369 Supplies 61650 3 (3,177) 5 Services and other charges 67,020 57 (9,936) 55,808 Capital outlay 1 1,204 5 Total Administrative Office 457,397 439,403 {17,994} 435,599 Elections and Voter Registration: Personal services 73 55,888 (17,794) 72,167 Supplies 1,000 95 (905) 2,806 Services and other charges 6,375 1,932 (4 1 Total Elections and Voter Registration 81,057 57 (23,142) 76,606 Assessor's Office: Personal services 169,238 1177,779 8,541 229,049 Supplies 2,600 877 (1 3 Services and other charges 38,136 31,085 (5 31,070 Capital outlay 3 1 (1 2 Total Assessor's Office 210,974 210,812 (162) 265,293 Finance: Personal services 418,448 436 18,355 377 Supplies 6,100 1,068 (5,032) 5 Services and other charges 8,565 9 475 8 Capital outlay 4 2 (1 3,977 Total Finance 437 448,926 11 395,297 Legal: Services and other charges 240,000 262,061 22,061 276,384 Total Legal 240,000 262,061 22,061 276,384 Government Buildings: Personal services 247,504 229,959 (17,545) 228 Supplies 79,150 66 (12,207) 65,398 Services and other charges 288 386,985 98,828 298,863 Capital outlay 3,400 3 1 204 200 15,387 Total Government Buildings $617,811 $687,087 $69,275 $612,232 53 54 S -2 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31 2001 2901 Actual over (Under) 2000 Budget Actual Budget Actual General Government (continued Data Processing: Personal services $77,253 $77,036 ($217) $72,059 Supplies 10 10 489 10,409 Services and other charges 148 138,241 (9 134,379 Capital outlay 40,000 49 9 29,455 Total Data Processing 275,260 275,742 482 246,302 Total General Government 2,443 2 60,513 2 Public Safetv Police Protection: Personal services 3 3 14,669 3 Supplies 79,695 96 16,912 60 Services and other charges 720,222 635,792 (84 694,170 Capital outlay 66,950 56,236 (10,714) 48,559 Total Police Protection 4,618 4 (63,563) 4 Fire Protection: Personal services 404,616 397,910- (6 391 Supplies 38,300 41 2,787 35 Services and other charges 169,556 183,231 13,575 170,365 Capital outlay 45 43,208 (1 65 Total Fire Protection 657,472 665,436 7 663,061 Protective Inspection: Personal services 401,181 332 (68,229) 374,202 Supplies 3 2,854 (346) 3 Services and other charges 38,238 56 18 34,924 Capital outlay 5 4,361 (1 9 439) Total Protective Inspection 448 396,698 (51 ,721) 412 Emergency Preparedness: Personal services 34,338 34,719 381 31,122 Supplies 1 1,681 (219) 1,661 Services and other charges 8,519 6 {1,673} 10,564 Total Emergency Preparedness 44,757 43 (1,511) 43,347 Total Public Safety $5,769,431 $5,660,600 ($108,831) $5,437,369 54 55 Sw2 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AN ACTUAL For the Year Ended December 31, 2001 2001 Actual Over (Under) 2000 Budget Actual Budget Actual Public Works Engineering Department: Personal services $613,559 $613 ($517) $616,271 Supplies 5,350 3 1 4 Services and other charges 27,299 33,639 6 23,444 Capital outlay 14,700 17,825 31125 7,832 Total Engineering Department 660,908 668 7,341 651,750 Street Department: Personal services 630 642,978 12 643,894 Supplies 153,500 163,684 10,180 182,810 Services and other charges 537,130 567,889 30,759 524 Capital outlay 101,450 99,268 (2 97 ,425 Total Street Department 1 1,473,815 50,901 1 Total Public Works 2 2 58,242 2,100 Community Services Social Services: Service and other charges 1069035 106,034 (1) 95,148 Total Community Services 106 106,034 (1) 95,148 Parks and Recreation Administration: Personal services 384,958 378,491 (6 385,911 Supplies 15,500 7 (8 15,808 Services and other charges 55,765 47,646 (8,119) 49,766 Capital outlay 12,900 6 (5,934) 16,575 Total Administration 469 440 (28,895) 468,064 Adult Programs: Personal services 71,767 66,445 (5 65,740 Supplies 21,030 20,690 (340) 19,412 Services and other charges 113,725 97,120 (16,605) 99,824 Total Adult Programs 206 184,255 (22,267) 184 Teen Programs: Personal services 7 3 (3 4,521 Supplies 600 1 607 134 Services and other charges 1 1 300 997 (303) Total Teen Programs $9,290 $5,878 {$3 $4 55 S -2 56 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 200 1 2001 Actual over (Under) 2000 Budget Actual Budget Actual Parks and Recreation (continued) Children's Programs: Personal services $1 02,265 $89,889 ($12,376) $1 00,784 Supplies 1 5,220 16,191 971 13,269 Services and other charges 5 4,555 (459) 4 Total Children's Programs 122,499 110,635 (11 118,801 General Programs: Personal services 24,362 29,863 5 30,123 Supplies 204 ?6 (124) 122 Services and other charges 34,935 39,150 4,215 39,177 Total General Programs 59 69,089 9 69,422 Community Center: Personal services 356,015 423 67,060 405 Supplies 17,050 9 (7 53,099 Services and other charges 70,800 77,048 6,248 42,482 Capital outlay 8,520 8 320 Total Community Center 452,385 51 8,223 65,844 501,372 Park Maintenance: Personal services 586,130 513,694 (72,436) 519 Supplies 65 58,335 (6,915) 51 Services and other charges 293,693 301,444 7 272,077 Capital outlay 2,700 3 531 25 Total Park Maintenance 947,773 876,704 (71,069) 868,812 Total Parks and Recreation 2 2,205,018 (62,071) 2 6,098 Economic Development Convention Bureau: Services and other charges 342,000 392,805 50,805 397 Total Economic Development 342 392,805 50,805 397,507 Nondenartmental Expenditures not Charged to Departments: Personal services 18,139 5,215 (12,924) 34 Supplies 27 28,029 19029 25 Services and other charges 423 335,800 (88,128) 351,464 Capital outlay 11,450 3 (8 8 Total Nondepartmental $480,517 $372,056 ($108 $419,789 56 M 57 City of Brooklyn Center (Continued from prior page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCIIVG USES BUDGET AIV D ACTUAL For the Year Ended December 31, 2001 2001 Actual over (Under) 2000 Budget Actual Budget Actual Administrative Service Reimbursement Charged to other funds ($770,707) ($767,504) $3,203 ($795 Total Administrative Service Reimbursement (770,707) (767,504) 3,203 (795,737) Other Financinc Uses Operating transfers out: Special Assessment Construction Fund 409,044 409,044 394,197 Capital Project Fund 245 245,700 100,000 Special Assessment Bonds Debt Service Fund 261,336 247,697 (13 258,488 Police Fire Building Debt Service Fund 785 759,436 (26 779,553 Total other Financing Uses 1,701,572 1 (39 1 Total Expenditures and other Financing Uses $14,423,638 $14,277,342 ($146 $13,825,030 57 City of Brooklyn Center, Minnesota SPECIAL REVENUE FUNDS The Special Revenue Funds are established to account for revenues derived from taxes and/or other specific revenue sources. These resources are usually restricted by State statute or by City charter or ordinance to finance specific City functions or activities. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Housing and Redevelopment Authority Fund (H.R.A.): 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 E.D.A. Fund; all tax proceeds are transferred to that fund. Economic Development Authority Fund (E.D.A.): This fund was established to account for the Economic Development Authority (E.D.A.) of Brooklyn Center. The E.D.A. carries out development activities; it has authority to operate an enterprise. The Earle Brown Heritage center operates under this authority and a statement of its operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and housing projects, funded by an ad valorem property tax levy and transfers from the C.D.B.G. and H.R.A. funds. Earle Brown Farm Tax Increment Financinq District Fund: 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 of bonds which were issued for the same purpose. Tax Increment Districts No. 3 and No. 4 Funds: These funds have 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 Druq Forfeiture Fund: This fund was established to account for property and /or cash seized by Police Department personnel. Community Development Block Grant Fund (C.D.B.G.): The fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. Transfers are made from this fund to the Economic Development Authority Fund; projects are accounted for in the Economic Development Authority Fund. Citv Initiatives Grant Fund: Revenues and expenditures from grants received from outside entities are accounted for in this fund. Grant programs for 2000 include several public safety grants, an after school enrichment recreation grant and a local planning assistance grant. 58 City of Brooklyn Canter Special Revenue Funds COMBINING BALANCE SHEET December 31, 2001 59 Economic Earle Brown Tax Development Tax Incr. Increment Authority Financing District Fund District No. 3 ASSETS Dash and cash equivalents $530,010 $2,183,207 Investments 345,151 1 Accounts receivable 9,021 Delinquent taxes receivable 13,802 Due from other funds 502,447 Due from other governments 1,550 139,893 TOTAL ASSETS $899,334 $0 $4,220,180 LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $95 $1,857 $137,591 Due to other funds 502 Accrued salaries payable 8 Accrued vacation and sick pay Advances from other funds 898,143 Deferred revenue 13,802 Total Liabilities 115,800 1 137,591 Fund Balances (Deficits): Reserved. Bond proceeds Unreserved 783 (1 4 Total Fund Balances (Deficits) 783,534 (1,202,247) 4 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $895,334 $0 $4 59 B -1 Tax Increment Police Drug city District Forfeiture Initiatives Totals No. 4 Fund Grant Fund 2991 2900 $68 $37,775 $41 ,234 $2 $764,137 44,576 24 26,964 1,856,007 2 9 12,334 13,602 3 502 139 51, 509 192,p952 447,322 $112 $62,478 $119 $5,414,421 $4,135,868 $488 $25,445 $68,168 $328,752 $483,213 502 1 39,293 335 7,130 17 698,143 698,143 13,662 3,690 488 25,445 68,503 1,550 1 977,619 112 37,033 $51204 3,864 1,816,806 112 37,033 51,204 3 2 $11 2,742 $62 $119 $5,414,421 $4,135,868 .1 61 City of Brooklyn Center Special Revenue Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2001 Housing and Economic Earle Brown Tax Redevelopment Development Tax Increment Increment Authority Authority Financing District Fund Fu nd District No. 3 Revenues Property taxes $147,123 $205,694 $1,035,349 $2,502 Intergovernmental 19,684 1 16,842 Investment earnings 39,312 146,493 Change in fair value of investments 100,202 6 95,775 Miscellaneous 57 Total Revenues 166,807 1,519,913 1 2,744,268 Exoend itu res Personal services 197,686 Supplies 33 Services and other charges 1,249,143 1 507,423 Capital outlay 1,076,721 Interest 30,229 38,445 Total Expenditures 2,523,583 31,886 545,868 Excess (Deficiency) of Revenues Over Expenditures 166,807 (1,003,670) 1,010,091 2 98,400 Other Financina (Uses) Sources Sale of fixed assets 572,266 Operating transfers in 166,807 Operating transfers out (166,807) (1,390,000) (580 Total Other Financing (Uses) Sources (166,897) 739,073 (1 (580 (Deficiency) Excess of Revenues and Other Financing Sources over Expenditures and Other Financing Uses (264,597) (379,909) 1 Fund Balances (Deficits) January 1 1 (822,338) 2,464,169 Fund Balances (Deficits) December 31 $0 $783 ($1,202,247) $4,082 61 B -2 Tax Police {3605} City 93,247 (20,995) Increment Drug Community Initiatives $112,254 $37 District Forfeiture Development Grant Totals No. 4 Fund Block Grant Fund 2001 2000 $254,049 $4,144,215 $3 $206,960 1,343,486 2 $2,829 3,725 192 252,888 1 2 207,173 (113,679) 31,954 24,091 113,904 105,299 254,049 36,772 $0 237,351 6,001 ,137 6 12,611 210,297 190,390 1,405 4 5,813 14 16,713 2 178,169 1 2 33,563 78,598 1 1 188,882 1 9 703,932 104,087 263 173,024 211 120,800 37,328 274,016 3,533,481 4,221,340 133,249 (556) 0 (36,665) 2,467,656 1,818,756 572,266 1 94 166,807 401 (2,136,807) {2,321,884} (1 (1 133,249 (556) {3605} 1 93,247 (20,995) 37,589 87,869 2,794,425 2,701,178 $112,254 $37 $0 $51,204 $3,864,347 $2,794 62 City of Brooklyn Center Housing and Redevelopment Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 B -3 Excess (Deficiency) of Revenues over other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 63 Actual over (Under) 2000 Budget Actual Budget Actual Revenues Property taxes $150,190 $147J23 ($3,067) $149,892 Intergovernmental 1904 19 19,654 Total Revenues 169,874 166 (3,067) 169,576 Other Financinc Uses Operating transfers out (16%874) {166,807} 3 (169 Excess (Deficiency) of Revenues over other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 63 City of Brooklyn Center Economic Development Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 B-4 2000 Actual $210,588 1,812,425 134,209 (49,279) 32,759 2,144,702 182,428 251 2,008,456 1, 636,491 3,827,624 (1,686,922) 194,491 401 ,884 596,375 (1 t090,547) 2,138,678 $1,048 64 Actual over (Under) Budget Actual Budget Revenues Property taxes $210,229 $205,694 ($4,535) Intergovernmental 1 1 Investment earnings 30,000 39 9,312 Change in fair value of investments 100,202 1 04,202 Miscellaneous 9 57 48,863 Total Revenues 249,229 1 1 Expenditures Personal services 190,774 197,686 5 Supplies 1,350 33 (1 Services and other charges 461,591 1 787,552 Capital outlays 5 1 1 ,071,121 Total Expenditures 659,315 2 1 Deficiency of Revenues Over Expenditures (410,086) (1 (593,584) Other Financina Sources Sale of fixed assets 572 572,266 Operating transfers in 410 166,807 (243,279) Total Other Financing Sources 410,086 739,073 328,987 Deficiency of Revenues and Other Financing Sources Over Expenditures (264 (264,597) Fund Balance January 1 1 1,048,131 Fund Balance December 31 $1,048,131 $783,534 ($264,597) B-4 2000 Actual $210,588 1,812,425 134,209 (49,279) 32,759 2,144,702 182,428 251 2,008,456 1, 636,491 3,827,624 (1,686,922) 194,491 401 ,884 596,375 (1 t090,547) 2,138,678 $1,048 64 City of Brooklyn Center Earle Brown Farm Tax Increment Financing District Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 1 0,091 (1 60,463) (1,390,000) 1,390,000) (379,909) (822,338) ($1,202,247) (1 60,463) ($160,463) B -5 2000 Actual $1,186,908 18,364 (7,163) 1,198,109 4,019 4,0'19 1,1 94,090 (1 (1 (165,910) (656,428) ($822,338) ►w 1 Budget Revenues (Under) Property taxes $1,171,554 Investment earnings 3,000 Change in fair value of investments (3,000) Total Revenues 1 Expenditures (132,577) Services and other charges 4 Interest 30,229 Total Expenditures 4 Excess (Deficiency) of Revenues Over Expenditures 1,170,554 Other Financing Uses Operating transfers out 1,390,040) Total Other Financing Uses 1,390,000) Deficiency of Revenues Over Expenditures and Other Financing Uses (219,446) Fund Deficit January 1 (822 Fund Deficit December 31 ($'1,04'1,784) 1 0,091 (1 60,463) (1,390,000) 1,390,000) (379,909) (822,338) ($1,202,247) (1 60,463) ($160,463) B -5 2000 Actual $1,186,908 18,364 (7,163) 1,198,109 4,019 4,0'19 1,1 94,090 (1 (1 (165,910) (656,428) ($822,338) ►w 1 Actual Over (Under) Actual Budget $1 ,035,349 ($136,205) (3,000) 61628 6,628 1 (132,577) 1 (2 30,229 30,229 31,886 27,886 1 0,091 (1 60,463) (1,390,000) 1,390,000) (379,909) (822,338) ($1,202,247) (1 60,463) ($160,463) B -5 2000 Actual $1,186,908 18,364 (7,163) 1,198,109 4,019 4,0'19 1,1 94,090 (1 (1 (165,910) (656,428) ($822,338) ►w 1 City of Brooklyn center Tax Increment District No. 3 Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 i of Actual over (Under) 2000 Budget Actual Budget Actual Revenues Property taxes $2,614,327 $2,502,000 ($112 $1,999,665 Investment earnings 25,000 146,493 121,493 96,804 Change in fair value of investments 95,775 95,775 (55 Total Revenues 2 2,744,268 104,941 2,041 Expenditures Services and other charges 142,801 507 364,622 157,301 Interest 38,445 38 Total Expenditures 142 545 403,067 157,301 Excess of Revenues Over Expenditures 2 2 (298,126) 1,884,135 Other Financing Uses Operating transfers out (580 (580,000) (560,000) Total Other Financing Uses (580,000) (580,000) (560 Excess of Revenues Over Expenditures and Other Financing Uses 1,916,526 1 (298,126) 1 Fund Balance January 1 2,464,169 2 1 Fund Balance December 31 $4,380,695 $4,082 ($298,126) $2 of City of Brooklyn Center Tax Increment District No. 4 Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 Revenues Property taxes Investment earnings Change in fair value of investments Total Revenues Expenditures Services and other charges Interest Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Fund Deficit January 1 Fund (Deficit) Balance December 31 B -7 2000 Actual $9,535 9,535 1 2,857 211 13,068 (3, 533) (17,462) ($24,995) 67 Actual Over (Under) Budget Actual Budget $21 7,780 $254 $36,269 5 ($51000) 222,780 254,049 $31 ,269 212,000 16,713 ($1 95,287) 104,087 194,087 212,000 120,800 (91,200) 10 133,249 122,469 (20,995) (20,995) ($1 0,215) $112,254 $122,469 B -7 2000 Actual $9,535 9,535 1 2,857 211 13,068 (3, 533) (17,462) ($24,995) 67 City of Brooklyn Center Police Drug Forfeiture Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 B -8 2000 Actual $1 6,880 2,078 (905) 18,053 3,798 2,611 6,409 11,644 25,945 $37,589 31_: Actual Over (Under) Budget Actual Budget Revenues Forfeited drug money $20,040 $31 $11 Investment earnings 2,829 2 Change in fair value of investments 1 1,993 Total Revenues 20,000 36,772 16,772 Expenditures Supplies 8 1 (5 Services and other charges 2 2 360 Capital outlays 10,000 33 23,563 Total Expenditures 20,000 37,328 17,328 (Deficiency) Excess of Revenues Over Expenditures (556) (556) Fund Balance January 1 37,589 37,589 Fund Balance December 31 $37 $37,033 ($556) B -8 2000 Actual $1 6,880 2,078 (905) 18,053 3,798 2,611 6,409 11,644 25,945 $37,589 31_: City of Brooklyn Center Community Development Block Grant Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 B Me Actual over (Under) 2040 Budget Actual Budget Actual Revenues Intergovernmental: Federal Grants $240,212 ($240,212) $232,308 Total Revenues 240,212 (240,212) 232 Other Financina Uses Operating transfers out (240,212) 240,212 (232,308) Excess (Deficiency) of Revenues Over other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 Me City of Brooklyn Center City Initiatives Grant Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 2001 2001 B -10 2000 Actual $174,583 1,433 (1,299) 55,660 230,377 7,964 10,566 126,948 67,441 21 2,919 17,458 70,4'11 $87,869 70 Actual Over (Under) Budget Actual Budget Revenues Intergovermrnental $154,400 $206,960 $56,960 Investment earnings 3 3 Change in fair value of investments 2 2 Miscellaneous 4,970 24,091 19,121 Total Revenues 154,970 237,351 82 Expenditures Personal services 8 12,611 4 Supplies 4 4 Services and other charges 71 178,169 106,699 Capital outlays 75,000 78,598 3,598 Interest 253 263 Total Expenditures 154,970 274,016 119,046 (Deficiency) Excess of Revenues Over Expenditures (36,665) (36,665) Fund Balance January 1 87,869 87 Fund Balance December 31 $87,869 $51 ($36,665) B -10 2000 Actual $174,583 1,433 (1,299) 55,660 230,377 7,964 10,566 126,948 67,441 21 2,919 17,458 70,4'11 $87,869 70 City of Brooklyn center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the accumulation of resources for and the payment of principal and interest on long -term general obligation debt other than revenue binds and tie City's liability for compensated absences. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become avai ab a and measurable. Expenditures are recognized in the accounting period in which the principa and interest are due. The city's Debt Service Funds included in this section are: General ob ieation Bonds Fund: This fund is used to account for the accumu ation of resources for payment of general obligation bonds and interest thereon. Tax Increment Bonds Fund: This fund is used to account for the accumulation of resources for payment of tax increment genera obligation bonds and interest thereon. These bonds were sold to finance the purchase and redevelopment of the historic Earle Brown Farm and other various redevelopment projects within the city. Special Assessment Bonds Fund: This fund is used to account for the accumulation of resources for the payment of special assessment 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 who y or in part from special assessments levied against benefited property. 71 C -1 ASSETS Cash and cash equivalents Investments Unremitted taxes Delinquent taxes receivable Special assessments receivable: Deferred Delinquent TOTAL ASSETS LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable Deferred revenue Total Liabilities Fund Balances: Reserved for debt service Total Fund Balances TOTAL LIABILITIES AND FUND BALANCES City of Brooklyn Center Debt Service Funds COMBINING BALANCE SHEET December 31, 2001 General Tax Special Obligation Increment Assessment Bonds Bonds Bonds $736,716 94,935 27,826 $859,477 $2,024,811 1 60,562 $2,185,373 $1,834,880 608,433 13 $9,645 3,428,179 64,247 $5,95%187 Totals $750 2041 2004 $4,596 $3 863,930 '1,259,561 13,803 3 9 759 3,428,179 3 92 30,488 $9 $8,315,599 $63 $750 $813 $1 $3,384 27,825 3 3,529,897 3 27 759 3 3,531,523 3 831,588 2 2 5 4,736,643 831,588 2,1 84,623 2 5 4,736,609 $859 $2,185,373 $5,959 $9,004 $8,315,599 72 City of Brooklyn Center Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2001 Revenues Property taxes Special assessments Intergovernmental Investment earnings Change in fair value of investments Total Revenues Expenditures Principal Interest Fiscal agent fees Total Expenditures (Deficiency) Excess of Revenues Over Expenditures Other Financing Sources (Uses) Operating transfers in Operating transfers out Total Other Financing Sources Excess (Deficiency) of Revenues and Other Sources Over Expenditures and other Uses Fund Balances January 1 Fund Balances December 31 General Tax Obligation Increment Bonds Bonds $176,000 $295,745 (1 1 8,175 20,146 16,397 18,550 330,317 21 4,696 655,000 1 377,551 519 1 1 1,034,076 1,970,909 {703,759} (1 759,436 1,970,004 759 1,970,000 Special Assessment Bonds $1,029,378 82,914 65,021 1 ,177,3'13 700,000 252,553 6,006 958,569 218,744 247,697 247,697 55 213,787 466 775,911 1,970 1 $831,588 $2,184,623 $2,456,303 C -2 Totals (930 2001 2000 $1 76,000 $4,73609 1 $994 295,745 291 121 ,235 141 ,277 99 (49 1 ,722,326 1 ,377,867 2,845,000 3,970,000 1 49,623 1,282,512 8 13,426 3,963 5,265 (2 (3 2 4 (19550 2 2 735,945 (930 4 5 $5,472,514 $4,73609 73 City of Brook yn Center, Minnesota CAPITAL PROJECTS FUNDS The capital Projects Funds are estab ished to account for a resources used for the construction or acquisition of capital facilities by the city except those financed by Enterprise Funds. This fund type utilizes the modified accrua basis of accounting. Revenues are recognized in the accounting period in which they become available and measurab e. Expenditures are recognized rin the accounting period in which the related iabi ity is incurred. The city's capital Projects Funds inc uded in this section are: Capital Reserve Emercencv Fund: This fund was established in 1997 to account for monies held in reserve for catastrophic losses. Capital Improvements Fund: This fund was estab fished in 1968 to provide funds, and to account for the expenditure of such funds, for major capital outlays including, but not imited to, construction or acquisition of major permanent facilities having a re ative y ong ife; and/or to reduce debt incurred for capita out ays. The financing sources of the fund include ad va. orem taxation, transfers from other funds, issuance of bonds, federal and state grants, and investment earnings. Municipal State Aid for construction Fund: This fund was established to account for the state a otment of gasoline tax co ections used for transportation re ated construction projects. Special Assessment Construction Fund: This fund was established to account for the resou rtes a n expend itu res req u i red for the acq u isition a n construction of ca Pita I faciI ities or improvements financed wholly or its part by special assessments evied against benefitted properties. 74 75 DW1 City of Brooklyn center Capital Projects Funds COMBINING BALANCE SHEET December 31, 2001 Municipal Capital State Aid Special Reserve Capital for Assessment Totals Emergency Improvements construction Construction Fund Fund Fund Fund 2001 2400 ASSETS Cash and cash equivalents $810,967 $2,078,778 $309,995 $673,775 $3 $1,492,707 Investments 530,325 1 ,359,401 202,719 440,610 2,533,355 5 Accounts receivable 2 2 1 Special assessments: Deferred 198,209 198,209 232,599 Delinquent 1,893 1,893 37 Due from other governments 455,391 6 462,067 892,906 Advance to other funds 950,000 593,069 1 1,593,069 TOTAL ASSETS $1,341,292 $4,388,179 $1,561,174 $1,324,441 $8,614,686 $9,660,786 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $508,224 $438,555 $49,643 $996,382 $373,191 Contracts payable 3,000 37,040 40,000 17 Accrued salaries and wages- 5,959 5 Deferred revenue 455,391 236,462 691 368,432 Total Liabilities 508,224 896,946 329,024 1,734,194 759,424 Fund Balances: Reserved: Advances to Other funds 950,000 593,069 1 1 Unreserved $1,341,292 2 71,'159 995,017 5,337,423 7,308,233 Total Fund Balances 1,341,292 3,879,955 664,228 995,017 6,880,492 8 TOTAL LIABILITIES AND FUND BALANCES $1,341,292 $4,388 $1,561,174 $1,324,041 $8 $9,660 75 Other Financing Sources Proceeds from sale of bands 730,004 730,009 735,000 Operating transfers in D -2 409,044 980 City of Brooklyn Center Total Other Financing Sources 571,200 1,139,044 1 1 9 304,197 Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 200 1 Over Expenditures 129,197 (1,453,915) (912,383) (476,769) (2 (2,332,632) Municipal 4,865,870 1,576,611 1,246,785 8,901,362 10,553,994 Capital 468,000 State Aid Special 580,400 Fund Balances December 31 $1,341 $3 Reserve Capital for Assessment Emergency Improvements Construction Construction Totals Fund Fund Fund Fund 2001 2000 Revenues Special assessments $102,172 $102,172 $289,596 Intergovernmental $50,090 50,009 1 Investment earnings $65,479 $232,200 35,057 28,523 361 515 Change in fair value of inyestments 63,718 216,195 99,540 47,404 426,857 (174 Miscellaneous 5,585 6,823 12,408 10,000 Total Revenues 129,197 453,980 184,597 184,922 952,696 '1,934,914 Expenditures Personal services 8,206 25,152 233,397 266,755 271,304 Supplies 354 19,324 788 20,466 510 Services and other charges 426,238 428,391 243,957 1,098 617,988 Capital outlay 2 624,11 -3 1 3,983,488 4,681 Interest 7 7 Total Expenditures 2,479,095 1,496,980 1,800,735 5,376,810 5 Excess (Deficiency) of Revenues Over Expenditures 129,197 (2,025,115) (912,383) (1,615,813) (4,424,114) (31636,829) Other Financing Sources Proceeds from sale of bands 730,004 730,009 735,000 Operating transfers in 571 409,044 980 569,197 Total Other Financing Sources 571,200 1,139,044 1 1 9 304,197 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures 129,197 (1,453,915) (912,383) (476,769) (2 (2,332,632) Fund Balances January 1 1 4,865,870 1,576,611 1,246,785 8,901,362 10,553,994 Equity Transfers In 468,000 225,000 693,000 580,400 Fund Balances December 31 $1,341 $3 $654,228 $995 $6 $8,941 76 cly (n 11 00— 00 LO cc) cp 00 cr) co C 4 t13 Q C� OD co Ce) LO CO ce) q 00 0 ul C� co c e CF) U Wb W. CD LO CF) 00 C4 Cr, U 0 cq c ce) '0 0 0 V" V. vo� fiJ C 6 0 C%A LO CO UD 00 LO t C Cl� V. ul Cyr? U 0 CO CD Cyr? 0 0 "Cr C-4 tl� 0. Vol co r r C:I U") cl, co C 0 0 0 to CD 00 C e Clkl CD C r-- C-4 0 C 4 TOO, 0 in OOZ 0 ul C'j co WON* 0 Iwo LU a 0 U CL V- t r r UO) C) 0 c) -CPO' I CO co 0 0 CD 0 0 0 0 0 0 0. cb ,V C .0.4 5 5 z 0 tt3' 43) CD 0 0 U.- co 1 {l.. 0 0 a CL 0' CL. 0 'co Z, 0 0 .I I" co W co Ul. a-OP ?p sow* CL 3: w CL. (n 11 0 L LU ,0, 41 co S. C7 LO 0 r N 0 c r 00 to N tfi Q N C� .ct to N N N CD N +q 3.. •tom Ll W L13 0 0� T3 N p Tow ..Z. Co t!3 C O 0 0 a o 0 ccl 0 ul �CD co ::3 U. LLI uj 0 LY CL. C3 C O C> Vol U-) OD e— (D to r— N 0 I 0 CL RA C 0 CO oo S t CSC?" 4 Act CD CO To" r CV C1r) N U co C C� 11 1O 00 0 Vol "10 0 c? 9 0 a co C D CD ILn 7 (0 tU 0 4) o Z 5 -,44 0 c co CO ul C L C 1 C C13 19 C F) qr r R (.0 00 to LO Co qr 0 C e LO 00 V- 00 U 0 c e 00 co O Cq 00 r. Lq CO CN C� V� 04 r 0 C CF) co LO U LO CO cli uj r ce) CO rr ul C� CO 00 N N (0 0 LO 0 co a. Wk 0 01- X LU U C*4 D 0( OTIM" 0 V) C e N 0 CF) :3 (D C 4 to Q 0) 40% c m c f V% Wh sk cf) 0 cnO E 0 V� N cq 00 LO c: 0 3z W 0 0 c ul 0 0 0 "boo E CD cn too LU cn T. snow c (D 2 CL LL Z uj LU (1) V) 0--.O 0 0 C) C 4 OL IOOW*% c) (D o E o 0 sow 0 E a- C o 0 E 0 0 E E 0 0 Room E "am E 0 0 0 Now C: 0 0 0 0 w 0 r' o 1.- 0 0 CO CL 0 0 Ce) cn rik City of Brooklyn Center, Minnesota ENTERPRISE FINDS The Enterprise Funds were established to account for the financing of se f- supporting activities of the City which render services on a user charge basis to the general pub ic. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become objectively measurab e. Expenses are recognized in the period incurred, if objective y measurable. The city's Enterprise Funds inc uded in this section are: Municipal Liquor Fund: _This fund accounts for the operations of the city's municipal off -sale liquor stores. Golf course Fund: This fund accounts for operations of Centerbrook Golf Course, a 9 hole, par 3 course owned by the City. Earle Brown Heritage Center Fund: This fund accounts for the operation of a convention center. The Ear a Brown Heritage center is a pioneer farmstead that has been historically preserved and restored as a modern multipurpose faci ity. Its convention center can host conferences, trade shows, and concerts seating 1 ,000 people in either banquet or theater style. The facility hosts many meetings, parties, weddings and receptions. Recyclinq and Refuse Fund: This fund accounts for the operation of a state mandated recyc ing program. Expansion into refuse co ection wi take place on y when there is a c ear advantage to be achieved by it. Water Utilitv Fund: This fund accounts forthe provision of waterto customers. Administration, we s, water storage, and distribution are included. Sanitary Sewer Fund: This fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropo itan Council Environmental Services whose fees represent about 75% of this fund's expenses. Storm Drainac, a Fund: This fund accounts for the operations and improvements of the storm water drainage system. It incorporates not only the storm sewer system, but also water structures such as holding ponds and facilities to improve water quality. Fees are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. 01] ASSETS Current Assets: Cash and cash equivalents Investments Accounts receivable net Accrued revenue Special assessments receivable: Deferred Delinquent Due from other governments Due from other funds Inventories Prepaid expenses Total Current Assets Fixed Assets: Mains and lines Structures Equipment Land Land improvements Less: Accumulated Depreciation Total Net Fixed Assets Total Assets LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable Contracts payable Due to other funds Accrued salaries payable Accrued vacation and sick pay Accrued interest payable Current portion of long -term debt Total Current Liabilities Long -Term Liabilities: Advances from other funds Other long term liabilities Bonds payable Total Long -term Liabilities Fund Equity: Contributed Capital Retained earnings Reserved: Debt service Special assessments Unreserved Total Fund Equity Total Liabilities and Fund Equity City of Brooklyn Center Enterprise Funds COMBINING BALANCE SHEET December 31, 2001 Municipal Golf Liquor Course Fund Fund $381,151 $54,340 245,458 32,331 1,080 807 111,971 258,828 10,956 9,297 1 94,434 317,090 269,859 31 1,391,71'1 77,450 269,859 1,817,823 43,104 175,070 226 1 $1,234,540 $1,737,187 $128,407 $9 11 2 50,099 140 62 900,000 909,999 643,725 1,094,156 131 9 1324 1,094,156 774 $1,234,540 $1,737,'187 E. Brown Heritage Center Fund $254,639 166,258 243,785 24,850 4,833 694,365 11,318,307 977,847 1,493,300 388,985 14,178,439 3,705,4'11 14,473 $11,167,393 $389,838 22,509 412,347 10,121,550 633,496 10,755,446 $1 '1,167,393 Recycling Refuse Fund $35,209 23,025 17,6'16 26,342 1 02,192 $'102,192 $625 625 10'1,567 1 01,567 $'102,192 81 E -1 Water Sanitary Storm $748,475 $1,155,592 utility Sewer Drainage Totals 63,302 Fund Fund Fund 2041 2000 $1,066,268 $606,582' $2 $824,809 697,278 396,670 1 9 020 2 152,401 244,721 $93,413 753 716 171,571 344,577 165 707,986 649,125 205,060 3,739 18,364 227,163 171,397 34,268 1 34,269 21,828 3 1 15,146 163 21 ,315 660 219315 84 22,132 660 31 6 397 4,997,514 118,429 863,964 132,559 122,818 2,373,468 1 277,274 6,264,236 6 13,547,963 11,222,6171 10,967,916 35,738,550 33,340,939 5,845,417 2 8,952 20,430,842 20,779,526 154,573 21 2,953 11,899 1 9 658,703 1,475,285 23,093 3,389 287,158 3,198 3,198,651 13,857 10,786 491,078 491 19,584,903 14 11,277,759 61 7,824 59,285 5,747,629 3,'132,586 567,322 13,371,122 1 2,392 13,837,274 11 w 256 ,455 1 0,710,437 48,146,702 46,893,456 $16,210 $12,971,173 $10,987,719 $54,410,938 $53,01 5,499 $209,918 $9,964 $748,475 $1,155,592 67,362 13,000 $13,400 93,302 63,302 21 21,315 84 11,297 3,463 51,961 59,505 1 0'1,462 18,833 18,833 22,795 200 250,000 240,400 288,517 26,427 253,148 1 1 900,000 9 56 660 660,004 864,044 660 1,560,000 'I ,866 4,997,514 5 863,964 22,295,175 22,618 240,140 240,100 239 239,328 3 18,365 261,432 1 93,226 10,685,387 7 8,952 28,874,345 26,370,132 15,922,225 12,944 10 51,667,052 49,421,905 $16,210,742 $12,971,173 $14,987,711 $54,410,938 $53,015,499 82 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 200 1 Operatina Revenues Sales and user fees Cost of sales Gross Margin Operatinc Expenses Personal services Supplies Other services Insurance Utilities Rent Depreciation Total Operating Expenses Operating Income (Loss) Nonweratinp Revenues or Expenses( Investment earnings Change in fair value of investments Special assessments Other revenue Interest and fiscal agent fees Loss on sale of fixed assets Total Nonoperating Revenues or Expenses( Income Before Operating Transfers Operating Transfers Out Net Income Depreciation on contributed assets that reduces contributed capital Retained Earnings Jan. 1 Retained Earnings Dec. 31 E. Brown Municipal Golf Heritage Liquor Course Center Fund Fund Fund $3,552 $320 $3,920,676 2 33,887 490 856 286,218 3 333 152,382 1 15 25,620 215,874 89,471 46,195 527,716 8,928 8,449 41,714 19,146 14 181 140,873 85,786 36,488 14,736 416,296 643 261,646 3,319,484 212,658 24,572 110,892 31 ,727 6 17,907 23,509 5 3 4,840 (737) (1,235) 60,076 11,651 1 9,851 272 36,223 130,743 (110 (10,000) 162 260223 1 30,743 323,422 931 ,422 104,801 179,331 $1 $131,024 $633,496 E -2 Recycling Water Sanitary Storm Refuse utility Sewer Drainage Totals Fund Fund Fund Fund 2001 2000 $211,388 $1,520,959 $2 $1 $13,259,771 $12,968 39229,229 3 211,388 1,520,950 2 1 29 1 0 9 315,805 136 100,893 2 3 153,738 16,277 426 422,065 214,846 348,917 1 52 2 2,785 143 11,742 7 3,604 81 ,798 65,212 128,774 26 370,780 333,452 226,659 193,774 414,965 239,381 170,302 1,292,168 1 ,204 214 1,373,941 2 327,412 8 8 (31601) 147,009 588,056 802,490 11881 1 3,714 103,255 59,238 222 275,169 3,875 105,247 73,948 14,375 225 (93,118) 20,253 289- 270,365 290,907 353,157 4,840 1 0,275 (53,166) (55,138) (83,507). (30,989) 7,589 228,755 133,475 227,574 688,971 430,987 3 375 721,531 1 2 2,040,242 (170,500) (35,000) (325,500) (75,000) 3 205,264 721,531 994,664 2,245 1 323,422 338 97,579 '10, 719,451 6 8,215,935 26 9 803 9 308 24,499,278 $1 01,567 $10,924,715 $7,276,320 $9,210,599 $29 $26,803,308 84 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2001 Municipal Golf Liquor course Cash flows from operating activities: Fund Fund Operating income (loss) $212 $24,572 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation Changes in assets and liabilities: Receivables Inventories Prepaid expenses Payables Accrued expenses Accrued interest payable Other nonoperating income Net cash provided by (used for) operating activities Cash flows from noncapital financing activities: Proceeds from interfund payableslreceivables Principal repayments on long term debt Principal repayments on advance Interest paid on advance from other funds Interest paid on interfund payables /receivables Interest paid to other entities Operating transfers out Net cash used for noncapital financing activities Cash flows from capital and related f nancinq activities: Capital contributions Acquisition and construction of capital assets Proceeds of sale of fixed assets Principal paid on revenue bonds Interest paid on revenue bonds Net cash used for capital and related financing activities Cash flows from investing activities: Investments purchased Investments sold or matured Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Non cash items: Change in fair value of investments 36,488 52,015 67,816 2,947 9,196 (56,545) 14,736 4,840 329,415 (1 10,000) (110,000) (8,599) (8,599) (15,512) 72,628 31,727 88,843 299,659 81,492 $381,151 $23,509 (807) 110 8,614 (6,223) E. Brown Heritage Center Fund $11 0,892 Recycling Refuse Fund ($3,601) 416,296 95,581 7,906 (1,383) (359,960) (24,051) (3,230) (625) 41,002 245,281 (7 (50,000) (737) (10,000) (60,737) (1,235) (1,235) (5,352) (5,352) (2,043) 49,926 6,569 54,452 29,365 20,975 $50,340 $5,819 (38,092) (38,092) (11,493) 17,907 6,414 212,368 42,271 $254,639 $3,'179 (1,455) 27,843 3,714 30,102 22,646 12,563 $35,209 $3,875 85 E -3 Water Sanitary Storm utility Sewer Drainage Totals Fund Fund Fund 2491 2000 $147,009 $588,056 $802,994 $1,881 ,676 $1,699,255 414,965 239,381 170,302 1,292,168 1 (81,019) (85,206) (29,932) (52,598) (227,148) 4 80,515 44 (11,305) (9 2,325 108 (110,853) (32,293) (377,118) 124 (14,433) (7 (293) (109,096) 22,699 (3,962) (3 (3 20,253 289 270,365 295,747 363 600,261 612 1 2,997,681 3,135,130 (63,321) (63,321) 84,636 (56,302) (56,302) (56 (50,000) (621,343) (515) (23,848) (1,972) (170,500) (35,000) (325,500) (75,490) (226,802) (98,321) (497,095) (692,372) 23,605 (1,048,031) (600,176) (845,165) (2,545,415) (3,769 221,241 (190,000) (190,000) (1 (53,166) (53,166) (59,144) r (1,048,031) (600,176) (1 (2 (3 (44 (25 (99,636) (2 1,199, 529 374,300 10 1 734, 601 3,102, 790 103,255 59,238 222,410 275,169 1,258,719 408,470 10,375 1 1,235,218 584,147 421,195 1,569, 384 (86,134) 482,121 185,387 824,809 910,943 $1,066,268 $606,582 $0 $2,394,189 $824,809 $105,247 $73,948 $19,375 $225,952 ($939118 6 City of Brook yn Center Municipal Liquor Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES I N RETAINED EARNINGS For the Year Ended December 31, 2001 Sales Liquor Wine Beer Soft drinks Other merchandise Total Sales Less: Cost of Sales Gross Margin Dperatina Excenses Personal services Supplies Other services Insurance Utilities Rent Depreciation Total Operating Expenses Operating Income Nonweratina Revenues (EXOenses) Investment earnings Change in fair value of investments Other revenue Interest and fiscal agent fees Loss on sale of fixed assets Total Nonoperating Revenues (Expenses) Operating Transfers to Other Funds Net Income Retained Earnings January 1 Retained Earnings December 31 E -4 2001 2000 $1,1 67 $1 400 37306 1,829,213 1 ,841,592 53,960 59,319 100,821 141,258 3,552,152 3 2 2,734,318 856 850,511 333 415,887 15,096 20,989 89 99,258 8,928 9 19,146 19,481 140,873 117,659 36 1 4 643,452 696,830 212,658 153,681 31 ,727 23,509 4,840 60,076 110,000 162 931,422 $1,094,156 30,929 (12,738) 4,189 (515) (30,989) (9,124) 75,000 69,557 861,865 $931,422 87 E -5 City of Brooklyn Center Golf Course Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 2001 2000 Operatinq Revenues Green fees $240,258 $272 Rentals 11,411 12,509 Leagues 13 12,522 Golf lessons 4 5,555 Concessions 30,757 33,214 Merchandise 17,427 20,378 Pop machine 1 1 Miscellaneous 1 1,064 Total Operating Revenues 320 359 Less: Cost of Sales 33,887 36 Gross Margin 286 322 Or)eratinq Expenses Personal services 152 148 Supplies 25,620 20,196 Other services 46,195 44,372 Insurance 8 8 Utilities 14 13,617 Depreciation 14,736 13,837 Total operating Expenses 261,646 248 Operating Income 24,572 74 Nonoperatina Revenues (Expenses) Investment earnings 6,569 6 Change in fair value of investments 5 (3,203) Interest and fiscal agent fees (737) Total Nonoperating Revenues (Expenses) 11,651 3 Operating Transfers to Other Funds 10,000 Net Income 26,223 77 Retained Earnings January 1 104,801 27,097 Retained Earnings December 31 $131 $1 City of Brook yn Center Earle Brown Heritage Center Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 0mratina Revenues Conventions Catering Inn on the Farm Office Rents Total Operating Revenues Less: Cost of Sales Gross Margin ODeratinc Expenses Personal services Supplies Other services Insurance Utilities Rent Depreciation Total Operating Expenses Operating Income Nonooeratina Revenues Expenses) Investment earnings Change in fair value of investments Interest and fiscal agent fees Total Nonoperating Revenues (Expenses) Net Income Depreciation on contributed assets that reduces contributed capital Retained Earnings (Deficit) January 1 Retained Earnings December 31 2001 $1,1 28,895 2,6'17,576 11'1,576 62,629 3,920,676 490,300 3,430,376 1 ,850,268 215,874 527,716 41,714 181 ,830 85,786 416,296 3,319,484 1'10,892 17,907 3,179 (1,235) 19,851 130,743 323,422 179,331 $633,496 E -6 2000 $1,022,997 2,792,04'1 207 60,138 3,992,737 533,428 3,459,309 1,955,572 230 481,383 30,504 154 76,'115 405,284 3,334,285 125,024 (23,848) (23,848) 101,176 338,788 (260,633) $179,331 E -7 City of Brooklyn Center Recycling and Refuse Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND GRANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 2001 Ooeratinci Revenues Recycling service fees $211,888 Orwatina Expenses Other services 214,846 Insurance 143 Total Operating Expenses 214 Operating Loss (3,661) Nonoperatina Revenues (Expenses) Investment earnings 3 Change in fair value of investments 3 Total Nonoperating Revenues (Expenses) 7,589 Net ncome (Loss) 3 Retained Earnings January 1 97,579 Retained Earnings December 31 $191,587 2000 $210,168 214 119 214,889 (4,721) 4 (1,851) 2,765 (2,016) 99,595 $97,579 &I City of Brooklyn Center Water Utility Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 2001 2000 Operating Revenues Service to customers $1,304,117 $1,219,961 Sale of meters 29 2 Pena ties 85,998 73,174 Renta s 100,949 52 Total operating Revenues 11520 1 ,348,221 Ooeratinp Expenses Personal services 315,805 314 Supplies 153,738 138,493 Contractual services 348,917 348,149 Insurance 11 8 Utilities 128,774 121,326 Depreciation 414,985 400,358 Total operating Expenses 1 1 Operating Income 147,009 18,811 Nonooeratinp,Revenues (Expenses) nvestment earnings 103,255 142,820 Change in fair va ue of investments 105 (39,259) Special assessments (for hookups delinquencies) 20,253 39 Other 8 Tota Nonoperating Revenues (Expenses) 228,755 149,422 operati -ng Transfers to other Funds 170,500 Net Income 205,284 185,233 Retained Earnings January 1 10,719,451 10,553,218 Retained Earrings December 31 $1 0,924,715 $10,719,451 91 E -9 City of Brooklyn center Sanitary Sewer Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 2001 2000 Or)eratina Revenues Service to customers $2,604,998 $2,398,323 Operating Expenses Personal services 136,201 120,051 Supplies 15,277 11 Contractual services 213,555 .198,209 Metropolitan council Environmenta Services 1 ,377,544 1 Insurance 7 5 Utilities 26,766 23,985 Depreciation 239 213,401 Total Operating Expenses 2 1,921,445 Operating Income 588,055 476,878 Nonoperatinq Revenues (Expenses) Investment earnings 59,238 90 Change in fair value of investments 73,948 (36,067) Special assessments for hookups and delinquencies 289 314 Tota Nonoperating Revenues (Expenses) 133,475 54,556 Net ncome 721,531 531,434 Retained Earnings January 1 8 8,023,355 Retained Earnings December 31 $7,276,320 $5,554,789 92 E -10 City of Brooklyn Center Storm Drainage Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 2001 2000 Gperatinp Revenues Service to customers $1,129,502 $1,074,619 Operating Expenses Personal services 190,893 1 00,000 Supplies 475 Contractua services 52,613 51,062 Insurance 3 2,646 Depreciation 170,302 153,206 Total operating Expenses 327412 307,389 Operating ncome 802,090 767,23 -0 Nonoperatina Revenues (Expenses) Investment earnings Charge in fair value of investments 10,375 Special assessments 270 310,588 Special assessments interest 21480 Intergovernmental Other revenue Interest and fiscal agent fees (53,166) (59,144) Total Nonoperating Revenues (Expenses) 227,574 253,924 Operating Transfers to other Funds 35 Net Income 994 11021,154 Retained Earnings January 1 8 71194 Retained Earnings December 31 $9,21 0,599 $8,215,935 93 City of Brooklyn Center, Minnesota INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. The City's I nterna Service Funds included in this section are: Public Employees Comr)ensated Absences Fund: This fund accounts for payment of unused vacation and sick leave time and the allocation of such costs to user departments. Public Employees Retirement Fund: This fund accounts for certain health care insurance benefits for City employees who retire before age 85. Substantially all of the City's full -time po ice and fire emp ogees and a. other fu -time ernp ogees hired before Ju y 1, 1 989 may be eligible for those benefits From the time they qualify for an unreduced PERA pension until they reach age 55 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. Central Garage Fund: This fund was established to account for the acquisition and maintenance of a I City vehicles and ro ing stock equipment. Vehicle and equipment maintenance, repair, and replacement wil be provided from rental rates which the central Garage charges City operating departments for use of the equipment. ASSETS Current Assets: Cash and cash equivalents Investments Accounts receivable Inventories Total Current Assets Fixed Assets: Equipment Less: Accumulated depreciation Total net fixed assets TOTAL ASSETS LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable Accrued salaries payable Accrued vacation and sick pay Accrued health insurance liability Total Current Liabilities Long -term Liabilities: Accrued vacation and sick pay Accrued health insurance liability Total Long -term Liabilities Fund Equity: Contributions: General Fund Debt Service Funds Capital Projects Funds Enterprise Funds General Fixed Asset Account Group Total Contributions Retained Earnings: L14reserved Total Fund Equity TOTAL LIABILITIES AND FUND EQUITY City of Brooklyn Center Internal Service Funds COMBINING BALANCE SHEET December 31, 2001 Public Employees Public Compensated Employees Absences Retirement Fund Fund $443,317 $933,257 289,904 61 D,297 -6 733,221 1,549,818 $733,221 $1,549,818 Central Garage Fund $2,472,372 1,616,789 4,115 1 3,258 4,106,534 5,934,770 3,067,896 2,866,874 $6,973,408 $137 $15,929 9,001 137 24,930 $733,221 1,549,681 733,221 1 $733,221 $1,549,818 803,429 1,1 28,825 6,829 497,284 495,213 2,931,171 4,017,307 6,948,478 $6 F91 Totals $16,124 2991 2000 $3,848,946 $1,107,681 2 4,014,899 10,379 8 13,258 11,273 6 5,141,867 5,934,770 5 3,067,896 2,738,853 2 2 $9,256,447 $8,1 30,828 $16,066 $16,124 9,001 9,750 6 29,515 497,284 1,423,243 25,467 1,478,632 733,221 1,549,681 2,282,902 803,020 823,034 1,128,825 1 6 6,999 497,284 509,678 495,213 507,556 2,931,171 3,004,226 4,017,307 3 6,948,478 6,652,196 $9,256,447 $8,130,828 Z,IR City of Brooklyn Center Internal Service Funds COMBINING STATEMENT of REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2001 Public Employees Public Compensated Employees Central Absences Retirement Garage Fund Fund Fund operatina Revenues Billings to departments Sales Total operating Revenues operatina Expenses Personal services Supplies Other services Insurance Utilities Depreciation Total operating Expenses Operating Loss Nonoceratinc Revenues (Expenses) Investment earnings Change in fair value of investments Total Nonoperating Revenues (Expenses) Net Income (Loss) Depreciation on contributed assets that reduces contributed capital Retained Earnings January 1 Retained Earnings December 31 $1,069,184 15,882 1,085,046 F -2 Totals 2001 2000 $1 $1 $15,882 70 1,085,046 1s133 $1 50,957 258,449 409,406 351 250,085 250,085 228 65,585 65,585 62 51,788 51 ,788 48,716 2,629 2,629 3,205 552 552,091 684,448 150,957 1,180,627 1 ,33'1,584 1,378,901 (150,957) (95581) (246,538) (245,024) 75,894 201,487 277,381 305,458 75,063 190,376 265,439 (124516) 150,957 391,863 542,820 180,942 296,282 296,282 (64 73,955 73,055 170,300 3,647,970 3,647,970 3,541,752 $0 $0 $4,017,307 $4,017,307 $3,647 g. City of Brooklyn Center Internal Service Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2001 Public Employees Public Compensated Employees Absences Retirement Fund Fund Cash flows from operatina activities: Operating loss ($150,957) Adjustments to reconcile operating loss to net cash (used for) provided by operating activities: Depreciation Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued salaries and leave Accrued health insurance liability Net cash provided by (used for) operating activities Cash flows from capital and related financing activities: Acquisition of fixed assets Net cash used for capital and related financing activities Cash flows (used for) Qrovided by investina activities: Investments purchased Investments sold or matured Interest on investments Net cash (used for) provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Non cash items: Change in fair value of investments F -3 Central Garage Totals Fund 2091 2000, ($95,581) ($246,538) ($245,024) 97 552,091 552,091 684,448 ($3,191) 826 (2,365) 13 (1,985) (1,985) 1 31 (89) (58) (13, 062) 733,221 (30,264) 702,957 1,762 126,438 126,438 53,352 733,221 (27,679) 424 1 496,256 (430,004) (430,004) (646,600) (430,004) (430,004) (646,600) (289,904) (38568) (102,175) (430,647) (2,896,564) 616,497 1,577,498 2,193,995 3,1 03,773 75,894 201,487 277,381 305,458 (289,904) 653,823 1,676,810 2,040,729 512,667 443,317 626,144 1,671,804 2,741,265 362,323 307,113 800,568 1,107,681 745,358 $443,317 $933,257 $2,472,372 $3,848,946 $1 ,107,681 $75,063 $190,376 $265,439 ($124,516) 97 City of Brooklyn Center, Minnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, are tangib a in nature, have a ife onger than the current fiscal year, and have a significant value. Depreciation is not recorded on those assets. S -8 1 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 2001 Sources`.of Investments General Indebtedness January 1, $712,,570 $11,328,547 December 31, 8 2001 188,519 7 Liquor store income 2001 383,312 Balance Acquisitions Disposals Balance Investments in General Fixed Assets Capital projects funds 8,948,457 8,948,457 Land $3,551,830 $95,000 777 $3,848,834 Buildings and improvements 15 2,237,909 $30,305 17,394,507 Park improvements 3 270,804 3 Furniture 1 102,389 58,725 1 Departmental equipment 1,121,599 142 89 1 Total Investments in General Fixed Assets $25,324,975 $2,848,391 $188,519 $28,006,847 Sources`.of Investments General Indebtedness $10,813,877 $712,,570 $11,328,547 General Fund revenues 8 1 9 581,083 188,519 7 Liquor store income 218,538 383,312 579,848 Contributions 244,942 1 58,305 403,247 Capital projects funds 8,948,457 8,948,457 Federal grants 744,813 33 777 Total Sources of Investments $25,324,975 $2,848,391 $188,519 $28,008,847 S -7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 2601 100 Buildings and Furniture and Function Land Improvements Improvements Equipment Total General government $1,172,766 $417 $1,590,107 Government buildings 406,676 $17,636,579 $313,342 438,699 18 Public safety 2 11 8,624 9,955 1 1 032,578 1 63,657 Public works 3,625 214,522 218 Recreation 13,821 237,071 250,892 Parks 2 731,483 3 1 54 6,595 Totals $3 $17 $3 $2,493 $289006,847 100 MIRM City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 2991 Totals $25 $2,848 $166,519 $28,006,847 101 General Fixed General Fixed Assets Assets January 1, December 31, Function 2001 Additions Deductions 2091 General government $1,604,317 $19,881 $34,091 $1,590,197 Government buildings 16,045,095 2 14,901 18 Public safety 994,002 282,790 93,135 1 Public works 193,399 33,737 8 218,147 Recreation 233,979 16 250,892 Parks 6 183 357,174 15,403 6 Totals $25 $2,848 $166,519 $28,006,847 101 City of Brooklyn Center, Minnesota GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -Term Debt Account Group was established to account for the City's unmatured general ob igation long -term debt that is secured by the fu faith and credit of the City and is not the primary obligation of an Enterprise Fund of the City. 102 G City of Brooklyn Center COMPARA "rIVE STATEIUIENT OF GENERAL LONG -TERM DEBT December 31, 2001 Amounts Available and to be Provided Amounts Available in Debt Service Funds Amounts to be Provided: From future property tax levies From future gas tax allocations From future tax increments From future special assessments Total Amounts Available and to be Provided General Lonp -Term Debt Pavable General obligation bonds Other long term liabilities Tax increment bonds General obligation special assessment bonds with governmental commitment Total General Long -Term Debt December 31, 2001 2000 $5,472,514 $4,735,509 5,932,579 0 1 1 5,808,378 7 09,153 3 4 $21,949,153 $24,040,820 $3,105,000 $8,750,000 4 20,820 71690,000 9 5 5 $21,949,'153 $24,040,820 103 Year 2092 2003 2004 2005 2006 2007 2408 2009 2010 2011 2012 2013 20'14 City of Brooklyn center SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 2001 General Obligation Bonds Principal Interest $680,000 $350,749 705,000 322,356 740,000 292 775,040 260,374 810,000 226,412 540,000 195,640 565,000 171,219 595,000 144,100 625,000 11 5,274 655,000 84,710 690,000 52,257 725,000 17,762 Tax Increment Bonds Principal Interest $1,540,040 $433,892 1,645,000 340,413 1,775,000 237,302 360,000 171,123 360,000 147,362 385,000 122,585 385,000 96 490,440 70,240 415,040 42,694 425,000 14,344 Special Assessment Bonds Principal Interest $780,000 $249,498 870,000 222,595 860,400 184,960 860,000 146 755,000 109,846 665,000 77,525 495,000 51,165 390,000 31,145 280,000 15,564 130,000 5,866 65,000 1,430 $8,105,000 $2,234,171 H Total Debt Service Requirements Principal Interest $3,000,000 $1,034,139 3 $885,365 3 $714,580 1,995,000 $577,952 1,925,000 $483 1,594,000 $396,750 1,445,000 $319,078 1 2 385 9 400 $245 1,320,040 $173 1,21 0,000 $104,920 755,000 $53,687 725,000 $17,762 $700,000 $1,676,609 $6,150,004 $1,096,050 $21,945,000 $5,006 104 City of Brooklyn Center, Minnesota STATISTICAL SECTION The statistical section presents comparative statistica data for the past ten years, and other pertinent information involving taxes, revenues, expenditures, bonded debt, property valuations, insurance coverage and miscellaneous statistics. This information is intended to be usefu and of interest to investors in City bonds, financia institutions, and others interested in municipa government financial statistics. 105 r W U) lrlr rr.- N LO CT) 4t o) T- r.- Lr) 0) to (D cv u? o qt CII) o a) o n. I;r Q m i=' a7 Q N �t C tin 0 0 L oo N ni L6 o c ro to L(3 CD N n. 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Co 0 C: C13 LU C) uj U) (n Lij CL W 0 N 0 N C14 0 Cq 0A U") C,e) cq 0 CL (1) .Mo. o o '0A 10 ql*: LO 0 ui 10 N CD u Lfi CD CD CD 4 0 W m CL 0 00 CC) co 0 0 CD lvo� 00 (1) tJ U. co 00 V. c6 LO C.0 cri ol M�r 0 cc Wet 0 LO E TWO" CD 00 tc� LO c1r) co 00 �3 CL C6 00 U") CD to co LO co co C6 00 CD qqr (D LO co %t E, Lo dopm CL *woo U) (1) CD cc c TOO CD co LO 0) UD (M CF) CD 0) TWO mr," 0 V— (1) 111 CD CD qv*" VOW V r 112 TABLE 7 City of Brooklyn Center RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years (Unaudited) Less; Ratio of Amounts Net Bonded Net Tax Gross in Debt Net Debt to Tax Bonded Fiscal Estimated Capacity Bonded Service Bonded Capacity Debt Per Year Population Value Debt (1) Fund Debt Value Capita 1992 28,558 $22,825,696 $310 $504 ($194 0.85% (6.79) 1993 28,533 21,563,017 0.00% 1994 28,484 21,277,190 0.00% 1995 28,463 21,317,771 0.00% 1996 28,502 20 0.00% 1997 28,515 19 7 82,056 7 40.45% 274.17 1998 28,535 18 7,900 616,778 7 38.53% 255.24 1999 28,535 20,387,445 7 725,868 6 33.59% 240.03 2000 29 20 7,175,000 725,930 0 30.82% 221.07 2001 29,172 18,357,062 6,760,000 831,551 5 32.29% 203.22 Source: City Finance Department and Hennepin County records (1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds. 112 Table 8 City of Brooklyn Center COMPUTATION OF LEGAL DEBT MARGIN December 31, 2001 (Unaudited) Market Value $1 ,475,520,200 Debt limit, 2% of market value 29,5101404 Total bonded debt 22 Deductions (See Note 6): Bonds: 1. Special Assessment Bonds 6 2. State Aid Street Bonds 11345 3. Tax Increment Bonds 7 4. Utility Revenue Bonds 860 Total Deductions 16 Total Debt Applicable to Debt Limit 5,7509000 Legal Debt Margin, December 31, 2001 $22,750,404 Source: City Finance and Assessing Department records 113 C,41 c e 0) o C4 to C-4 ce) T. 00 T— is C'4 o u s Ic" -<r 00 co L C LO C-A Q co S: ce) -too Vol ui c) 0 ui u V- VOW co co- vm� V, C co ce) 0) 0 Vw 1 Cq c e C4- wl CD. co C CA. co 'n CF) Ir+ t"' 1 ski T— -Vol* co cri c e Ul) U') u CO. cn %CL LU to ce) CJ i t.� C� to Vol t—. 0 ce) ce) U co C CC) co U 5 -COO 10 1 U') (D Ito V, t— co cr� 46. u CD Iwo C4 W Ct) 0 0 F ()0 (1) CO 04 VOW top* .000* 0 Iwo- 0 U.- 0 0 I-W .P (D I (D 0 uw co 0 30; 0 co *0 4) C: 2:7 Wow Z7 vu 0) o Cm 00 CD (OD t— CD cO Is- t6 0 0 0 0 C: p 0 r C: c� as s 114 0 au o TABLE 10 City of Brooklyn Center RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES Last Ten Fiscal Years (Unaudited) Source: City Finance Department records (1) Amounts for 1996 are higher because of the defeasance of the Tax Increment Bonds of 1985.- Debt Service as a Percent of General Expenditures 31.73% 29.84% 18.71 18.00% 57.13% 18.33% 19.93% 25.51% 37.99% 27.70% 115 Total Tota I Debt General Fund Year Principal Interest Service Expenditures 1992 $1 $1 $3,075,204 $9,690,274 1993 1 1 2 9,707,525 1994 780,000 1 1 9 1995 825,000 1,075,975 1 10,559 19 96(l) 5,125,000 1 6 10 1997 1,135,000 1 2 11,739,733 1998 1 1 2 12 1999 2 1 3 13,363 2000 3 1,282,512 5,252,512 13,825 2001 2 1 3 14,277 Source: City Finance Department records (1) Amounts for 1996 are higher because of the defeasance of the Tax Increment Bonds of 1985.- Debt Service as a Percent of General Expenditures 31.73% 29.84% 18.71 18.00% 57.13% 18.33% 19.93% 25.51% 37.99% 27.70% 115 r r H CD cn Cd H W m w .CL C7 OQ lL ''�t r` l• r` C37 GC7 LU w w w W r C t_ C6 r.- l� o 0 a CD N a r` w t,! 3 Lo Q r C6 v Z cu o U "C3 N 7+ W 'cv Z 7 0 0 0 w ca mW m 0 r 0 .uJ D Q) W w N x c3 It W Q7 N N- Q (D r` M o 0 00 N M d" M :3 Vd a Q C o N j Ol (1] 0 w C7 (D C N a Cu CD a3 Q Q �C Q Q Q Q d Q zzzzzzzzz 0vao©0C�vaa rn Cfl Nt 0000000000 r 0 a v o 0 a 0 v a a Q M 0 Ley M M P-- 0 W r M v vO oc OD N c0 OD It Lq r- r 0 W t` 1` M M CO 0 a a� r� Ln l� r cv cD Ln r� N CSC C] M d Cn C33 LL7 r C 0 LL7 N T LC7 W r M M 0 0 r%- CO r` r• Ga C70 CTS 0 aoU)W04tM -0MUO Ca t- Lo o r R W b- a d' CA M o d' Q7 r d' W r� Cry C3] r- 6 Ca C6 C C33 f` C33 N M M tt M d" W d' l� r r r r r r r r r r T- V 00 Mgt a M W N M LC] W W M W N W ONO Ln r� r r C'7 U l%- Ln l� M� C7 t11 M N N N N r N649. 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CO 0 u l CD C s V- m LU CT a- 00 Co c o a a) 06 5 :0 1 Nw ti c r w 'COO VOO y CD U-) t N w 0) Vol, I ca Soo co -A t S -r- V- a) VOO Vol City of Brooklyn Center PRINCIPAL TAXPAYERS December 31, 2661 (Unaudited) TABLE 13 Total Market Value $1 36, 27 5,60 0 10.06% TOTAL CITY MARKET VALUE $1,354,431,300 Source: City Assessing Department records 118 Percentage 2001 -of Total Market City Market Taxpayers Type of Business Valuation Value Talisman Brookdale, LLC Shopping Center $27,587,600 2.04% Target Stores Retail 21,440,000 1.55% BCC Associates, LLC /Reliastar Office 16,410,000 1.21% TLN LA NEL Apartment 12,648,400 0.93% Regal Cinemas, Inc. Theater 11,150,000 0.82% Brookdale Corner, LLC Retail 11,010,000 0.81% Hennepin County Hotel Association Hotel 10,540,000 0.78% D,3S Holdings, Inc. Industrial 9110000 0.67% Sears Roebuck and Co. Department Store 8 0.66% Wickes Furniture Company Industrial 7 0.58% Total Market Value $1 36, 27 5,60 0 10.06% TOTAL CITY MARKET VALUE $1,354,431,300 Source: City Assessing Department records 118 City of Brooklyn Center SCHEDULE OF INSURANCE COVERAGE Effective January 1, 2042 (Unaudited) Policy Period Type of Coveraqe and Details From TO 1. Statutory Liability to EmMovees a. Workers' Compensation 04 -01 -02 04- 01-03 (participant in the League of Minnesota Cities Insurance Trust Self Insured Workers' Compensation Program) II. Liability to the Public a. Comprehensive general liability includes the following additional coverages: (a) All employees as additional insureds entry or eviction, or invasion of right of privacy. {c} Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 04 -01 -02 04 -01 -03 (2) Property damage 04 -01 -02 04 -01 -03 (3) Personal injury 04 -01 -02 04 -01 -03 b. Automobile liability, comprehensive 04 -01 -02 04 -01 -03 (1) Bodily injury (2) Property damage (3) Uninsured motorist C. Liquor stores' dram shop 01 -01 -02 01 -01 -03 d. Golf Course and Central Park liquor liability e. Personal accident, Volunteers 01 -01 -02 01 -01 -03 01-01-02 .01-01-03 Table 14 (Continued next page) Liability Limits Statutory $1,000,000 combined single limit $1,000,000 combined single limit $1,000,000 combined single limit $1,000,000 occurrence $1 ,000,000 occurrence $1 ,000,000 occurrence $1,000,000 each common cause $1,000,000 each common cause $100,000 accidental death $4001week short -term disability $1,040 medical 119 City of Brooklyn Center SCHEDULE OF INSURANCE OVERAGE Effective January 1, 2002 (Unaudited) Type of Coverage and Details III. Insurance on City Property a. Public and institutional property, all risk, blanket $36,142,440; $1,009 deductible replacement value on buildings, (1) Civic Center East Fire Station (3) West Fire Station (4) Municipal Service Garage (5) Elevated Water Towers 3 locations (6) Park Shelter Buildings -17 locations (7) Pump Houses 10 locations (8) Lift Stations 10 locations (9) Meter Station (10) Storage Building (11) Outdoor lighting systems 7 locations (12) Humboldt Liquor Store (13) Leased Liquor Store (14) Leased Liquor Store (15) Pedestrian Bridge 2 locations (16) Picnic Shelter (17) Earle Brown Heritage Center (18) Centerbrook Golf Course Club House (19) Centerbrook Golf course Garage (29) Lions Park Concession Stand Policy Period From To 04-01 -02 04-01-03 Table 14 (Continued from prior page) Buildings, Structures, and Contents (Replacement Cost) $9,779,750 $1 ,453,325 $3,150,000 $3,085,5+00 $3,949,44❑ $1 ,517 $1,132,200 $1,266,840 $18,360 $480,420 $325,400 $455,940 $233,000 $240;720 $1 1 221 9 960 $135,200 $11,195,220 $380,460 $46,920 $41 ,000 Liability Limits b. Boiler and machinery 04 -01 -02 04 -01 -03 $5,000,000 per accident C. Automotive physical damage 04 -01 -02 04 -01 -03 (1) Comprehensive ACV $1,000 deductible (2) Collision ACV $1,000 deductible IV. Criminal Acts a. Faithful performance blanket position $500,000 per loss b. Money and securities (broad form) Various C. Depositor's forgery $1 00 120 City of Brooklyn Center DEMOGRAPHIC STAnsTICS Last Ten Fiscal Years (Unaudited) TABLE 15 No, 286 Earle Brown 1,722 1,750 1 1,658 1 1,746 1,788 1 1,682 1,724 121 School Enrollments (4) City Fiscal Unemployment Mpls- St.Paui No. 11 No. 279 No. 281 Year Population (1) Rate (2) C.P.I. (3) Anoka Osseo Robbinsdale 1992 28,558 5.1% 3.9% 36,525 20,658 13,905 1993 28,533 5.1% 2.5% 37,777 20,998 13,519 1994 28,484 3.4% 3.4% 38,344 21 21,6 14 1995 28,463 3.1% 2.3% 39-,152 21,479 13,595 1996 28 3.0% 3.4% 39,874 21,664 14,099 1997 28,515 2.3% 1.9% 40,402 21,992 '14,010 1998 28,535 1.9% 2.3% 40,923 22,028 13 1999 28,535 2.4% 3.6% 40,964 22,'171 '13,800 2000 29,172 3.0% 4.2% 41 22 13,706 2001 29,172 3.9% 3.3% 41 22,041 13,754 (1) Source: Metropolitan Council (2) Source: Minnesota Department of Economic Security; average rate for the past year (3) Source: U.S. Bureau of Labor (4) Source: Minnesota Department of Children, Families Lea_ rning (Brooklyn Center has parts of these four Districts within the City) No, 286 Earle Brown 1,722 1,750 1 1,658 1 1,746 1,788 1 1,682 1,724 121 TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 2001 (Unaudited) Date of incorporation February 14, 1911 Date of adoption of City Charter November 8, 1966 Date City Charter effective December 8, 1966 Form of government Council- Manager Fiscal year begins January 1 Area of City 8 112 square miles Miles of streets: city 105.856 County 6.49 State 10.79 Miles of sidewalks 34.8 Miles of trails 11.2 Miles of storm sewers 84.02 Number of street lights: owned by N.S.P 915 Owned by City 172 City employees as of December 31, 2001 Authorized regular full -time 166 Temporary or part -time 250 Total 416 Fire protection: Number of stations 2 Number of full -time employees 1 Number of volunteer firefighters 34 Police protection: Number of stations 1 Number of sworn police officers. 44 Number of other full -time employees 13 Number of part -time employees 9 122 City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 2001 prior page) (Unaudited) Parks and Recreation: Park property totals 527 acres developed to serve a wide variety of recreational interests. The areas include playlots, playgrounds, playflelds, trails, nature areas and an arboretum. Playgrounds 20 Park shelters 10 Picnic shelters 10 Ice skating rinks 13 Hockey rinks 8 Softball diamonds 21 Baseball diamonds 5 Tennis courts 14 Basketball courts 19 Football /soccer fields 3 Municipal water plant: Number of connections 8 Average daily consumption in gallons 3,538,490 Peak daily consumption in gallons 10 Plant capacity gallons per day 17,552,000 Miles of water mains 114 Number of fire hydrants 975 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3 Water rate per thousand gallons $0.98 Municipal sewer plant: Number of connections 8,754 Miles of sanitary sewer 1 05.51 Daily disposal capacity in gallons 1 0,938,240 Number of lift stations 10 Residential rate per quarter $50.00 Municipal liquor stores (off- sale): Number of leased stores 1 2001 sales $3,552,152 Elections: Last general election November 7, 2000 Registered voters 17,843 Votes cast 13 Percentage of registered voters voting 72.88% Last municipal election November 7, 2000 Registered voters 17,843 Votes cast 13,004 Percentage of registered voters voting 72.88% 123