HomeMy WebLinkAbout2025.07.21 CCP JOINT FINANCIALJOINT CITY COUNCIL/
FINANCIAL COMMISSION
MEETING
Council Commission Room
Chambers July 21, 2025
AGENDA
1.Call to Order - 5:00 p.m.
2.Roll Call/Introductions
3.2024 Audit Presentation
a.2024 Financial Audit Presentation
4.2026 – 2035 Capital Improvement Plan
a.2026 - 2035 Capital Improvement Plan
5.Adjournment
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Council/Financial Commission Meeting
DATE:7/21/2025
TO:City Council and Finance Commissioners
FROM:Angela Holm, Finance Director
THROUGH:Dr. Reggie Edwards, City Manager
BY:Angela Holm, Finance Director
SUBJECT:Presentation of 2024 Annual Financial Audit
Requested Council Action:
Background:
City Council Code of Policies Section 2.21 (3)(E)(5) states that an independent public
accounting firm will perform an annual audit and will publicly issue an opinion
concerning the City’s finances. For the fiscal period ending December 31, 2024 the
City procured the services of public accounting firm Abdo to perform the City’s annual
audit.
Abdo staff conducted the 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.
It is management’s responsibility to prepare and fairly present the financial statements
in accordance with accounting principles generally accepted in the United States of
America, employing relevant internal controls necessary to fulfill this responsibility.
It is the auditor’s objective to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement whether due to fraud or
error. Reasonable assurance is not absolute assurance and is not a guarantee that a
material misstatement will be detected if it exists. Misstatements are considered
material if there is a likelihood that they would influence the judgement made by a
reasonable user based on the financial statements.
The City’s Annual Comprehensive Financial Report for the Fiscal Period Ending
December 31, 2024 is included. This report is a still in draft status as staff has not
obtained the required actuarial report from the City’s Fire Relief Association.
Information in this report does not impact the overall financial health of the City but is a
required component of the audit standards.
Significant fund performance results, financial trends, and other key performance
indicators will be presented to Councilmembers and Commissioners by representatives
from Abdo.
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There are two audit findings represented in the 2024 audit. An audit finding is a
conclusion reached that indicates there are areas within an organization’s processes,
procedures, or controls that need improvement or correction. An audit finding does not
automatically indicate fraud or other malfeasance.
Corrective Action Plans to address audit findings are required. It is important to
recognize that the action plan must identify and correct the underlying cause of the
finding, not simply clear the identified transaction or transactions. Staff have begun
corrective actions on the underlying cause of these findings. The results of these
corrective actions will be included in the 2025 audit report in the Schedule of Prior Year
Findings.
The final dated version of the 2024 Annual Comprehensive Financial Report will be
included on the agenda for the regular Council meeting on July 28, 2025. Staff will
recommend acceptance of the audit report at that time.
Budget Issues:
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
ATTACHMENTS:
1.2024 Annual Comprehensive Financial Report
2.Audit Results PowerPoint Presentation
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ANNUAL FINANCIAL REPORT
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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City of Brooklyn Center, Minnesota
Annual Financial Report
Table of Contents
For the Year Ended December 31, 2024
Page No.
Introductory Section
Principal City Officials 9
Financial Section
Independent Auditor’s Report 13
Management’s Discussion and Analysis 17
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 33
Statement of Activities 34
Fund Financial Statements
Governmental Funds
Balance Sheet 38
Reconciliation of the Balance Sheet to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities 42
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
General Fund 43
Tax Increment District No. 3 44
Proprietary Funds
Statement of Net Position 45
Statement of Revenues, Expenses and Changes in Net Position 46
Statement of Cash Flows 47
Notes to the Financial Statements 49
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Fund 92
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Fund 92
Notes to the Required Supplementary Information - General Employees Retirement Fund 93
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Fund 95
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Fund 95
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 96
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 98
Notes to the Required Supplementary Information - Fire Relief Association 99
Schedule of Employer’s Fire Relief Association Contributions 100
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 101
Notes to the Required Supplementary Information - Total OPEB Liability and Related Ratios 101
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City of Brooklyn Center, Minnesota
Annual Financial Report
Table of Contents (Continued)
For The Year Ended December 31, 2024
Page No.
Combining and Individual Fund Financial Statements and Schedules
Nonmajor Governmental Funds
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 105
Nonmajor Special Revenue Funds
Combining Balance Sheet 106
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 108
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual
Housing and Redevelopment Authority 110
Economic Development Authority 111
Centerbrook Golf Course 112
Tax Increment District No. 5 113
Tax Increment District No. 6 114
Tax Increment District No. 7 115
Nonmajor Capital Project Funds
Combining Balance Sheet 116
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 117
General Fund
Comparative Balance Sheets 119
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 120
Debt Service Funds
Combining Balance Sheet 124
Combining Schedule of Revenues, Expenditures and Changes in Fund Balance s 126
Nonmajor Proprietary Funds
Combining Statement of Net Position 128
Combining Statement of Revenues, Expenses and Changes in Net Position 129
Combining Statement of Cash Flows 130
Internal Service Funds
Combining Statement of Net Position 131
Combining Statement of Revenues, Expenses and Changes in Net Position 132
Combining Statement of Cash Flows 133
Summary Financial Report
Revenue and Expenditures for General Operations - Governmental Funds 134
Other Required Reports
Independent Auditor’s Report on
Minnesota Legal Compliance 137
Independent Auditor’s Report on Internal
Control over Financial Reporting and on
Compliance and Other Matters Based on an
Audit of Financial Statements Performed in
Accordance with Government Auditing Standards 138
Independent Auditor’s Report on Compliance
For Each Major Federal Program and Report on
Internal Control Over Compliance Required
By the Uniform Guidance 140
142
143
144
147
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Findings, Responses and Questioned Costs
Corrective Action Plan
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INTRODUCTORY SECTION
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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City of Brooklyn Center, Minnesota
Principal City Officials
For the Year Ended December 31, 2024
Elected
Name Title Term Expires
April Graves Mayor 12/31/26
Marquita Butler Council Member 12/31/24
Dan Jerzak Council Member 12/31/26
Teneshia Kragnes Council Member 12/31/26
Kris Lawrence-Anderson Council Member 12/31/24
Appointed
Dr. Reginald Edwards City Manager
Siobhan Tolar City Attorney
Barb Suciu City Clerk
Garrett Flesland Police Chief
Jesse Anderson Community Development Director
Todd Berg Fire Chief
Cordell Wiseman Recreation Services Director
Elizabeth Heyman Public Works Director
Angela Holm Finance Director
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FINANCIAL SECTION
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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INDEPENDENT AUDITOR'S REPORT
Honorable Mayor and City Council
City of Brooklyn Center, Minnesota
Opinions
We have audited the accompanying financial statements of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Brooklyn Center, Minnesota, (the City) as of and
for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City as of December 31, 2024, and the respective changes in financial position and cash flows, where
applicable, thereof and the budgetary comparison for the General fund and Tax Increment District No. 3 for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
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In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
City’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Change in Accounting Principle
As described in Note 10 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 100, Accounting Changes and Error Corrections, for the year ended
December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of
the components of the financial statements. Our opinion is not modified with respect to this matter.
As described in Note 10 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of
the provisions of these statements results in significant change to the classifications of the components of the financial
statements. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis starting on page 17 and the Schedule of Employer’s Share of the Net Pension Liability, the Schedule of
Employer’s Contributions, the Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and
Related Ratios, the Schedule of Changes in the City's OPEB Liability and Related Ratios and the related note disclosures
starting on page 92 be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriat e operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules
and schedule of expenditures of federal awards as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The information has been subjected to the auditing procedures appl ied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statement themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements
and schedules and the schedule of expenditures of federal awards are fairly stated, in all material respects in relation to
the basic financial statements as a whole.
Other Information
Management is responsible for the other information in the report. The other information comprises the introductory
section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic
financial statement do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated NEED DATE, on our
consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing ,
and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control over financial reporting and compliance.
Abdo
Mankato, Minnesota
NEED DATE
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Management’s Discussion and Analysis
As management of the City of Brooklyn Center, (the City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2024.
Financial Highlights
• The assets and deferred outflows or resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year as shown in the summary of net position on the following
pages. The unrestricted amount of net position may be used to meet the City’s ongoing obligations to citizens
and creditors.
• The City’s total net position increased as shown in the summary of changes in net assets table on the following
pages. The increase this year was due to capital grants received during the year.
• For the current fiscal year, the City's governmental funds fund balances are shown in the financial analysis of the
City's Funds section of the MD&A. The total fund balance increased in comparison with the prior year. This
increase was mainly due to an increase in special revenue related to initiative grants and street reconstruction
revenue related to MSA funding. The total of assigned and unassigned as shown in the governmental fund
balance table is available for spending at the City’s discretion.
• The unassigned fund balance in the General fund as shown in the financial analysis of the City’s funds section
increased from prior year.
• The City’s total bonded debt increased during the fiscal year. The increase was a result of new improvement and
revenue bonds acquired in the current year.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s
basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition
to the basic financial statements themselves. The following chart shows how the various parts of this annual report are
arranged and related to one another:
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of combining and individual fund financial statements and
schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required
parts of this annual report are arranged and relate to one another. In addition to these required elements, we have
included a section with combining and individual fund financial statements and schedules that provide details about
nonmajor governmental funds, which are added together and presented in single columns in the basic financial
statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the
government-wide financial statements, to avoid “doubling-up” effect within the governmental and business-type activities
columns of said statements.
Figure 1
Required Components of the
City’s Annual Financial Report
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Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government
they cover and the types of information they contain. The remainder of this overview section of management’s
discussion and analysis explains the structure and contents of each of the statements.
Figure 2
Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government
(except fiduciary funds)
and the City’s component
units
The activities of the City
that are not proprietary or
fiduciary, such as police,
fire and parks
Activities the City
operates similar to private
businesses, such as the
water and sewer system
Required financial
statements
• Statement of Net
Position
• Statement of Activities
• Balance Sheet
• Statement of
Revenues,
Expenditures, and
Changes in Fund
Balances
• Statement of Net
Position
• Statement of
Revenues, Expenses
and Changes in Net
Position
• Statement of Cash
Flows
Accounting basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual
accounting and current
financial resources focus
Accrual accounting and
economic resources focus
Type of asset/liability
information
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter; no
capital assets included
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Type of deferred
outflows/inflows of
resources information
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid.
Only deferred outflows of
resources expected to be
used up and deferred
inflows of resources that
come due during the year
or soon thereafter; no
capital assets included
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Type of in flow/out flow
information
All revenues and expenses
during year, regardless of
when cash is received or
paid
Revenues for which cash
is received during or soon
after the end of the year;
expenditures when goods
or services have been
received and payment is
due during the year or
soon thereafter
All revenues and expenses
during the year, regardless
of when cash is received
or paid
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with
a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets and deferred outflows of resources and
liabilities and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
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The statement of activities presents information showing how the City’s net position changed during the most recent
fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items
that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees and charges (business-type activities). The governmental activities of
the City include general government, public safety, public works, community services, parks and recreation and economic
development. The business-type activities of the City include water, Heritage Center of Brooklyn Center, municipal liquor,
sanitary sewer utility, storm drainage utility, street lighting utility and recycling utility .
The government-wide financial statements include not only the City itself (known as the primary government), but also the
legally separate Economic Development Authority and Housing Redevelopment Authority for which the City is financially
accountable. Financial information for these component units are reported separately from the financial information
presented for the primary government itself.
The government-wide financial statements can be found starting on page 33 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City, like other state and local government, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as
well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful
to compare the information presented for governmental funds with similar information presented for governmental
activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact
by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains various individual governmental funds, several of which are Debt Service funds that are considered
one fund for financial reporting. Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Debt Service
fund and Tax Increment District No. 3, all of which are considered to be major funds. Data from the other governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental
funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General fund and Tax Increment District No. 3. Budgetary
comparison statements have been provided for the General fund and Tax Increment District No. 3 fund to demonstrate
compliance with these budgets.
The basic governmental fund financial statements can be found starting on page 38 of this report.
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Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the
same functions presented as business-type activities in the government-wide financial statements. The City uses
enterprise funds to account for its municipal liquor, Heritage Center of Brooklyn Center, water utility, sanitary sewer utility,
storm drainage utility, street light utility and recycling utility operations. Internal service funds are an accounting device
used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds
to account for its central garage operations, employee retirement benefit, employee compensation and pension activity
for the GERP and PEPFP programs. Because these services predominately benefit governmental rather than business-
type functions, they have been included within the governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for each of its operations that are considered to
be major fund of the City. Internal service funds balances have been incorporated into the functions of the governmental
activities that benefited from these services. Individual fund data for the internal services funds is provided in the form of
combining statements elsewhere in this report. The basic proprietary fund financial statem ents can be found starting on
page 45 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of
the data provided in the government-wide and fund financial statements. The notes to the financial statements can be
found starting on page 49 of this report.
Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also
presents required supplementary information concerning the City’s progress in funding its obligation to provide pension
benefits and other post-employment benefits to its employees. Required supplementary information can be found on
page 92 of this report.
The combining statements and schedules referred to earlier in connection with nonmajor governmental funds are
presented immediately following the notes to the financial statements. Combining and individual fund statements and
schedules can be found starting on page 104 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of
the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of
the most recent fiscal year.
By far, the largest portion of the City’s net position reflects its investment in capital assets (e.g., land, buildings,
infrastructure, machinery and equipment, etc.), less any related debt used to acquire those assets that are still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it shou ld
be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
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City of Brooklyn Center’s Summary of Net Position
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
Assets
Current and other assets 80,589,456$ 76,230,552$ 4,358,904$ 21,171,106$ 18,566,682$ 2,604,424$
Capital assets 75,959,827 75,481,430 478,397 79,624,469 79,953,078 (328,609)
Total Assets 156,549,283 151,711,982 4,837,301 100,795,575 98,519,760 2,275,815
Deferred outflows of resources 11,563,138 13,141,330 (1,578,192) - - -
Liabilities
Noncurrent liabilities 36,334,481 35,804,829 529,652 38,485,497 36,725,534 1,759,963
Other liabilities 4,752,675 5,387,970 (635,295) 1,789,935 2,142,658 (352,723)
Total Liabilities 41,087,156 41,192,799 (105,643) 40,275,432 38,868,192 1,407,240
Deferred inflows of resources 13,606,602 13,179,664 426,938 4,117,627 4,510,759 (393,132)
Net Position
Net investment in
capital assets 55,631,215 58,550,019 (2,918,804) 44,090,699 43,008,038 1,082,661
Restricted 38,576,901 38,549,514 27,387 - - -
Unrestricted 19,210,547 13,381,316 5,829,231 12,311,817 12,132,771 179,046
Total Net Position 113,418,663$ 110,480,849$ 2,937,814$ 56,402,516$ 55,140,809$ 1,261,707$
Net Position as a Percent of Total
Net investment in capital assets 49.0 %53.0 %78.2 %78.0 %
Restricted 34.0 34.9 - -
Unrestricted 16.9 12.1 21.8 22.0
Total Net Position 99.9 % 100.0 %100.0 % 100.0 %
Governmental Activities Business-type Activities
An additional portion of the City’s net position represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position may be used to meet the City’s ongoing obligations to
citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both
for the City as a whole, as well as for its separate governmental and business -type activities.
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Governmental Activities. Governmental activities increased the City’s net position, as shown below. Key elements of this
increase are as follows:
City of Brooklyn Center’s Changes in Net Position
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
Revenues
Program Revenues
Charges for services 4,573,642$ 2,536,548$ 2,037,094$ 24,766,364$ 23,632,778$ 1,133,586$
Operating grants and
contributions 2,830,232 4,356,884 (1,526,652) - 253,788 (253,788)
Capital grants and
contributions 2,446,078 1,201,521 1,244,557 - 196,344 (196,344)
General Revenues
Property taxes 24,769,646 23,100,876 1,668,770 - - -
Tax increments 994,856 1,050,058 (55,202) - - -
Lodging taxes 887,205 898,037 (10,832) - - -
Grants and contributions not
restricted to specific programs 3,934,901 3,296,142 638,759 - - -
Unrestricted
investment earnings (loss)1,927,953 1,788,433 139,520 530,854 528,438 2,416
Other 1,338,276 400,535 937,741 - - -
Gain on sale
of capital assets 450,000 194,701 255,299 - - -
Total Revenues 44,152,789 38,823,735 5,329,054 25,297,218 24,611,348 685,870
Expenses
General government 6,630,482 6,530,570 99,912 - - -
Public safety 15,366,678 15,349,585 17,093 - - -
Public works 12,867,649 6,292,303 6,575,346 - - -
Community services 131,795 180,657 (48,862) - - -
Park and
recreation 1,418,190 5,853,004 (4,434,814) - - -
Economic development 2,666,046 2,954,501 (288,455) - - -
Interest on long-term debt 367,016 395,747 (28,731) - - -
Municipal liquor - - - 6,641,783 6,773,467 (131,684)
Heritage Center of Brooklyn Center - - - 4,729,005 4,545,057 183,948
Water utility - - - 5,132,621 4,940,861 191,760
Sanitary sewer utility - - - 5,716,940 5,326,043 390,897
Storm drainage utility - - - 2,408,574 2,522,856 (114,282)
Street light utility - - - 545,074 653,176 (108,102)
Recycling utility - - - 628,633 537,993 90,640
-
Total Expenses 39,447,856 37,556,367 1,891,489 25,802,630 25,299,453 503,177
Increase (Decrease) in Net Position
Before Contributions 4,704,933 1,267,368 3,437,565 (505,412) (688,105) 182,693
Capital Contributions (1,767,119) - (1,767,119) 1,767,119 - 1,767,119
Change in Net Position 2,937,814 1,267,368 1,670,446 1,261,707 (688,105) 1,949,812
Net Position - January 1 110,480,849 109,213,481 1,267,368 55,140,809 55,828,914 (688,105)
Net Position - December 31 113,418,663$ 110,480,849$ 2,937,814$ 56,402,516$ 55,140,809$ 1,261,707$
Governmental Activities Business-type Activities
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• Property taxes increased $1,668,770 and charges for services $2,038,478, respectively, mainly due to increased
general fund levies and increased valuation of TIF properties.
• Capital Grants and contributions increased $1,244,557.
• Investment earnings totaled $1,929,410.
The following graphs depict various governmental activities and show the revenue and expenses directly related to those
activities.
Expenses and Program Revenues - Governmental Activities
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
General
Government
Public Safety Public Works Community
Services
Parks and
Recreation
Economic
Development
Interest on Long-
term Debt
Expenses Program Revenues
Revenues by Source - Governmental Activities
Charges for
Services 10.4%
Operating Grants
and Contributions
6.4%
Capital Grants and
Contributions 5.5%
Unrestricted
Grants and
Contributions 8.9%
Taxes/Tax
Increments 60.3%
Unrestricted
Investment
Earnings
4.4%
Other 4.1%
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Business-type Activities. Business-type activities decreased the City’s net position, as shown in the changes in net
position table. Key elements of this decrease are as follows:
• Charges for services increased by $967,168 due to an increase in usage and utility rates.
• Due to inflationary pressures, all business-related expenses trended upward, resulting in an increase of
$1,178,290 from the prior year.
Expenses and Program Revenues - Business-type Activities
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Municipality
Liquor
Heritage
Center of
Brooklyn
Center
Water Utility Sanitary
Sewer Utility
Storm
Drainage
Utility
Street Light
Utility
Recycling
Utility
Expenses Program Revenues
Revenues by Source - Business-type Activities
Charges for Services
97.6%,
Unrestricted
Investment Earnings
2.1%
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Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the year.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year. The table below outlines the governmental fund balances for the year ending
December 31, 2024.
Tax Special Other
Increment Assessment Street Nonmajor Prior Year
General District No. 3 Construction Reconstruction Governmental Total Total
Fund Balances
Nonspendable 190,099$ -$ -$ -$ 3,694$ 193,793$ 193,535$
Restricted - 20,961,704 - 7,343,327 16,871,671 45,176,702 37,421,721
Committed - -- -2,083,782 2,083,782 8,669,542
Assigned - -- -- - -
Unassigned 14,555,855 - 869,801 - (871,925) 14,553,731 11,797,376
Total 14,745,954$ 20,961,704$ 869,801$ 7,343,327$ 18,087,222$ 62,008,008$ 58,082,174$
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances shown
above. Additional information on the City’s fund balances can be found in Note 1 starting on page 49 of this report.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General
fund is shown in the table above. As a measure of the General fund’s liquidity, it may be useful to compare unassigned
fund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is
shown in the chart below along with total fund balance as a percent of total expenditures.
Current Year Prior Year Increase
Ending Balance Ending Balance (Decrease)
General Fund Fund Balances
Nonspendable 190,099$ 188,428$ 1,671$
Unassigned 14,555,855 13,407,391 1,148,464
Total 14,745,954$ 13,595,819$ 1,150,135$
General Fund Expenditures 29,073,606$ 27,821,556$
Unassigned as a Percent of Expenditures 50.1%48.2%
Total Fund Balance as a Percent of Expenditures 50.7%48.9%
The fund balance of the City’s General fund increased during the current fiscal year as shown in the table above Major
variances that occurred in the General fund from its budget are noted below in the General Fund Budgetary Highlights.
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Other major governmental fund analysis is shown below:
December 31,December 31,Increase
2024 2023 (Decrease)
Tax Increment District No. 3 fund 20,961,704$ 21,605,846$ (644,142)$
The Tax Increment District No. 3 fund decrease in fund balance during the year was due to
the district no longer collecting increment following decertification in 2021.
Special Assessment Construction 869,801$ (798,565)$ 1,668,366$
The Special Assessment account had $5,257,958 in capital improvements
that will be reimbursed by future bond proceeds.
Street Construction Fund 7,343,327$ 1,060,648$ 6,282,679$
The Street construction fund had bond proceeds that were not spent
for 2024.
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government -wide
financial statements, but in more detail. Net position of the City’s proprietary funds increased or (decreased) as follows:
Ending Ending
Net Position Net Position Increase
2024 2023 (Decrease)
Water Utility 13,977,289$ 13,162,998$ 814,291$
The decrease primarily is attributed to increase in operating expenses, interest and other costs.
Sanitary Sewer Utility 17,114,974$ 16,730,996$ 383,978$
The decrease primarily is attributed to increase in operating expenses, interest and other costs.
Stom Drainage Utility 21,052,597$ 20,751,865$ 300,732$
The decrease primarily is attributed to increase in operating expenses, interest and other costs.
General Fund Budgetary Highlights
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 28,006,619$ 28,501,354$ 494,735$
Expenditures 29,891,224 29,073,606 817,618
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,884,605) (572,252) 1,312,353
Other Financing Sources (Uses)
Transfers in 2,051,200 1,889,087 (162,113)
Transfers out (166,595) (166,700) (105)
Total Other Financing Sources (Uses)1,884,605 1,722,387 (162,218)
Net Change in Fund Balances - 1,150,135 1,150,135
Fund Balances, January 1 13,595,819 13,595,819 -
Fund Balances, December 31 13,595,819$ 14,745,954$ 1,150,135$
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Revenues were over budget by $496,192, expenditures were under budget by $980,838 and the other financing sources
(uses) were under budget by $162,218, causing fund balance to increase by $1,314,812 in 2024. The budget was
balanced during the year.
The major variances in the budget for the General fund were:
• Rental dwelling licenses and mechanical permits revenue were over budget by $92,078 and $39,275, respectively.
mainly due to increased activity in the housing market and a surge in construction projects.
• Charges for services revenue was over budget by $207,213 mainly due to the increase in rates and number of
services provided.
• Investment earnings were over by $360,037 due to an increase in interest rates and market value adjustments.
• Police expenditures were under budget by $725,761. This is due to personal services in the police department
being under budget by $940,275 due to staffing shortages.
Capital Asset and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business -type activities as of
December 31, 2024, is shown below in capital asset table (net of accumulated depreciation). This investment in capital
assets includes land, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges. The
total decrease in the City’s investment in capital assets for the current fiscal year for governmental and business -type
activities is to the City has started the Orchard Lane reconstruction project in 2024 with continued investment in capital
assets.
Major capital asset activity during the current fiscal year included the following
• Costs related to the Dupont Avenue Water Main Crossing rehabilitation project totaled $1,455,375
• Costs related to the 65th Avenue Storm rehabilitation project totaled $866,662
• Costs related to the Lift Station #5 Rehabilitation project totaled $333,246
• Costs related to the basketball court pavement replacement totaled $129,705
• Orchard Lane East Street Reconstruction project costs totaled $3,980,778
• Playground equipment replacements amounted to $347,048
Additional information on the City’s capital assets can be found in Note 3C starting on page 63 of this report.
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City of Brooklyn Center’s Capital Assets
(Net of Depreciation)
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)2024 2023
Land 5,638,873$ 5,638,873$ -$ 2,698,879$ 2,698,879$ -$ 8,337,752$ 8,337,752$
Easements 320,904 320,904 - 10,285 10,285 - 331,189 331,189
Construction in Progress 4,411,539 2,103,427 2,308,112 5,485,001 971,078 4,513,923 9,896,540 3,074,505
Land Improvements 10,286,424 10,205,874 80,550 122,216 151,371 (29,155) 10,408,640 10,357,245
Buildings and Improvements 5,940,866 6,814,998 (874,132) 21,466,882 21,419,591 47,291 27,407,748 28,234,589
Machinery and Equipment 7,751,980 5,965,420 1,786,560 303,867 272,989 - 8,055,847 6,238,409
Leased Equipment 48,718 66,433 (17,715) - - - 48,718 66,433
Street Infrastructure 41,560,523 44,365,501 (2,804,978) - - - 41,560,523 44,365,501
Street light systems - - - 1,818,830 2,009,764 - 1,818,830 2,009,764
Mains and lines - - - 47,718,509 52,419,121 - 47,718,509 52,419,121
Total 75,959,827$ 75,481,430$ 478,397$ 79,624,469$ 79,953,078$ 4,532,059$ 155,584,296$ 155,434,508$
TotalGovernmental Activities Business-type Activities
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding consisting of special
assessment, tax increment bonds, bonds secured solely by specified revenue sources (i.e., revenue bonds) and leases
payable.
City of Brooklyn Center’s Outstanding Debt
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)2024 2023
General Obligation Lease
Revenue Bonds -$ -$ -$ 2,000,000$ 2,145,000$ (145,000)$ 2,000,000$ 2,145,000$
General Obligation
Improvement Bonds 18,373,892 15,387,688 2,986,204 381,108 567,312 (186,204) 18,755,000 15,955,000
General Obligation
Tax Increment Bonds 1,745,000 2,075,000 (330,000) - - - 1,745,000 2,075,000
General Obligation
Revenue Bonds - - - 23,045,000 20,220,000 2,825,000 23,045,000 20,220,000
Certificates of Participation - - - - - - - -
General Obligation
Revenue Notes - - - 10,763,445 11,785,445 (1,022,000) 10,763,445 11,785,445
Leases Payable 50,234 67,689 (17,455) - - - 50,234 67,689
Total 20,169,126$ 17,530,377$ 2,638,749$ 36,189,553$ 34,717,757$ 1,471,796$ 56,358,679$ 52,248,134$
TotalGovernmental Activities Business-type Activities
The City’s total debt increased by $6,183,274 (approximately 10 .6 percent) during the current fiscal year. The City’s bond
rating was remained ‘AA’ from Standard & Poor’s for their 2024 issues. The City had no new bond issues in 2023.
Minnesota statutes limit the amount of net general obligation debt a City may issue to three percent of the market value
of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. The current debt limitation for
the City is $91,797,996, which is significantly in excess of the City’s outstanding general obligation debt. Additional
information on the City’s long-term debt can be found in Note 3E starting on page 66 of this report.
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Economic Factors and Next Year’s Budgets and Rates
• Continuing redevelopment throughout the City will yield net growth in tax base and stability in tax base along with
providing job growth in the City.
• Since 2008, the EDA has acquired approximately 49 acres of land including the former Brookdale Square
shopping center site, the former Target site, the former Brookdale Ford dealership property and other parcels
within the existing street boundaries of the area. The EDA entered into a Preliminary Develop ment Agreement with
Alatus, LLC as the master developer of this site. In May 2018, the site was federally designated as an Opportunity
Zone. The preliminary development concept proposed involves the construc tion of a mixed-use
apartment/hotel/commercial/single-family development together with related improvements including a
centralized park area, new roads and storm water ponding improvements.
All of these factors were considered in preparing the City’s budget for the 2024 fiscal year.
The City’s policy is to maintain a General fund unassigned fund balance of 50.0% - 52.0% of the ensuing year’s budgeted
General fund operations. Additionally, the City's capital project funding policy transfers the amount of fund balance
exceeding 52.0% to the Capital Improvements fund following the completed audit of the City. Total unassigned fund
balance at the end of 2023 was $13,407,391 , or 47.9% of the adopted 2024 budgeted expenditures.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the
City’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Director, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota 55430.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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Governmental Business-type
Activities Activities Total
Assets
Cash and investments 50,482,759$ 13,466,703$ 63,949,462$
Receivables
Interest 12,807 363,741 376,548
Taxes 164,749 - 164,749
Accounts, net of allowances 293,340 3,608,154 3,901,494
Notes 85,133 - 85,133
Leases 445,785 4,166,158 4,611,943
Special assessments 4,883,389 893,087 5,776,476
Intergovernmental 612,042 81,662 693,704
Internal balances 2,730,401 (2,730,401) -
Inventories 224,902 1,034,337 1,259,239
Prepaid items 82,552 287,665 370,217
Assets held for resale 20,127,822 - 20,127,822
Capital assets
Nondepreciable 10,371,316 8,194,165 18,565,481
Depreciable 65,588,511 71,430,304 137,018,815
Net pension asset 443,775 - 443,775
Total Assets 156,549,283 100,795,575 257,344,858
Deferred Outflows of Resources
Deferred pension resources 9,381,827 - 9,381,827
Deferred other postemployment benefit resources 2,181,311 - 2,181,311
Total Deferred Outflows of Resources 11,563,138 - 11,563,138
Liabilities
Accounts payable 1,211,702 500,022 1,711,724
Contracts payable 202,686 245,599 448,285
Due to other governments 68,024 137,254 205,278
Accrued interest payable 280,376 397,158 677,534
Accrued salaries and wages 1,022,421 25,059 1,047,480
Deposits payable 760,929 395,655 1,156,584
Unearned revenue 1,206,537 89,188 1,295,725
Noncurrent liabilities
Due within one year
Long-term liabilities 3,248,356 4,192,684 7,441,040
Due in more than one year
Long-term liabilities 19,702,715 34,292,813 53,995,528
Net pension liability 9,370,040 - 9,370,040
Total other postemployment benefits liability 4,013,370 - 4,013,370
Total Liabilities 41,087,156 40,275,432 81,362,588
Deferred Inflows of Resources
Intergovernmental 515,920 - 515,920
Deferred pension resources 11,918,315 - 11,918,315
Deferred other postemployment benefit resources 766,724 - 766,724
Deferred lease resources 405,643 4,117,627 4,523,270
Total Deferred Inflows of Resources 13,606,602 4,117,627 17,724,229
Net Position
Net investment in capital assets 55,631,215 44,090,699 99,721,914
Restricted
Capital projects - - -
Tax increment financing 24,379,706 - 24,379,706
Statutory housing obligation - - -
Economic development 1,866,861 - 1,866,861
Debt service 5,309,666 - 5,309,666
Law enforcement enhancements 72,619 - 72,619
Opioids 118,959 - 118,959
Community prevention, health and safety 1,399,768 - 1,399,768
State-aid street systems 4,985,547 - 4,985,547
Fire relief pension 443,775 - 443,775
Unrestricted 19,210,547 12,311,817 31,522,364
Total Net Position 113,418,663$ 56,402,516$ 169,821,179$
City of Brooklyn Center, Minnesota
Statement of Net Position
December 31, 2024
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Statement of Activities
For the Year Ended December 31, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Governmental Activities
General government 6,630,482$ 2,032,533$ 107,234$ -$
Public safety 15,366,678 1,001,732 880,734 -
Public works 12,867,649 18,205 1,361,809 2,446,078
Community services 131,795 - - -
Parks and recreation 1,418,190 878,602 79,594 -
Economic development 2,666,046 642,570 400,861 -
Interest on long-term debt 367,016 - - -
Total Governmental Activities 39,447,856 4,573,642 2,830,232 2,446,078
Business-type Activities
Municipal liquor 6,641,783 6,723,769 - -
Heritage Center of Brooklyn Center 4,729,005 4,277,786 - -
Water utility 5,132,621 4,971,997 - -
Sanitary sewer utility 5,716,940 5,560,917 - -
Storm drainage utility 2,408,574 2,105,576 - -
Street light utility 545,074 570,815 - -
Recycling utility 628,633 555,504 - -
Total Business-type Activities 25,802,630 24,766,364 - -
Total 65,250,486$ 29,340,006$ 2,830,232$ 2,446,078$
General Revenues
Property taxes, levied for general purposes
Property taxes, levied for debt service
Tax increments
Lodging taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Other
Gain on sale of capital assets
Capital Contributions From (to) Other Funds
Total General Revenues
Change in Net Position
Net Position, January 1
Net Position, December 31
Program Revenues
The notes to the financial statements are an integral part of this statement.
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Governmental Business-type
Activities Activities Total
(4,490,715)$ -$ (4,490,715)$
(13,484,212) - (13,484,212)
(9,041,557) - (9,041,557)
(131,795) - (131,795)
(459,994) - (459,994)
(1,622,615) - (1,622,615)
(367,016) - (367,016)
(29,597,904) - (29,597,904)
- 81,986 81,986
- (451,219) (451,219)
- (160,624) (160,624)
- (156,023) (156,023)
- (302,998) (302,998)
- 25,741 25,741
- (73,129) (73,129)
- (1,036,266) (1,036,266)
(29,597,904) (1,036,266) (30,634,170)
22,950,790 - 22,950,790
1,818,856 - 1,818,856
994,856 - 994,856
887,205 - 887,205
3,934,901 - 3,934,901
1,927,953 530,854 2,458,807
1,338,276 - 1,338,276
450,000 - 450,000
(1,767,119) 1,767,119 -
32,535,718 2,297,973 34,833,691
2,937,814 1,261,707 4,199,521
110,480,849 55,140,809 165,621,658
113,418,663$ 56,402,516$ 169,821,179$
Net (Expense) Revenue and
Changes in Net Position
The notes to the financial statements are an integral part of this statement.
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FUND FINANCIAL STATEMENTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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(Formerly Nonmajor)
Tax Special (Formerly Nonmajor)Other
Increment Assessment Street Nonmajor
General District No. 3 Construction Reconstruction Governmental Total
Assets
Cash and investments 16,008,886$ 1,273,194$ 1,006,064$ 7,854,967$ 18,781,827$ 44,924,938$
Receivables
Interest 1,905 - - - 10,902 12,807
Current taxes 152,434 - - - 6,321 158,755
Delinquent taxes - - - - 5,994 5,994
Accounts, net of allowances 254,791 - - - 7 254,798
Notes - - - - 85,133 85,133
Leases 11,858 - - - 433,927 445,785
Special assessments 372,557 - 2,185,750 - 2,325,082 4,883,389
Intergovernmental 15,526 - - - 578,412 593,938
Due from other funds 383,008 - - - 3,418 386,426
Inventories 183,346 - - - 3,694 187,040
Prepaid items 6,753 - - - 75,799 82,552
Assets held for resale - 19,692,844 - - 434,978 20,127,822
Total Assets 17,391,064$ 20,966,038$ 3,191,814$ 7,854,967$ 22,745,494$ 72,149,377$
Liabilities
Accounts payable 447,819$ 2,478$ -$ 511,640$ 163,251$ 1,125,188$
Contracts payable - - 146,569 - 56,117 202,686
Due to other funds - - - - 3,418 3,418
Due to other governments 68,024 - - - - 68,024
Accrued salaries and wages 1,015,921 - - - 3,323 1,019,244
Deposits payable 742,940 1,856 - - 16,133 760,929
Unearned revenue 33 - - - 1,180,833 1,180,866
Total Liabilities 2,274,737 4,334 146,569 511,640 1,423,075 4,360,355
Deferred Inflows of Resources
Unavailable revenue
Taxes - - - - 5,994 5,994
Special assessments 358,880 - 2,175,444 - 2,835,053 5,369,377
Deferred lease resources 11,493 - - - 394,150 405,643
Total Deferred Inflows of Resources 370,373 - 2,175,444 - 3,235,197 5,781,014
Fund Balances
Nonspendable 190,099 - - - 3,694 193,793
Restricted - 20,961,704 - 7,343,327 16,871,671 45,176,702
Committed - - - - 2,083,782 2,083,782
Unassigned 14,555,855 - 869,801 - (871,925) 14,553,731
Total Fund Balances 14,745,954 20,961,704 869,801 7,343,327 18,087,222 62,008,008
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 17,391,064$ 20,966,038$ 3,191,814$ 7,854,967$ 22,745,494$ 72,149,377$
City of Brooklyn Center, Minnesota
Balance Sheet
Governmental Funds
December 31, 2024
The notes to the financial statements are an integral part of this statement.
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Amounts reported for governmental activities within the statement of net position are different because
Fund Balances - Governmental Funds 62,008,008$
Net capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in the funds.69,644,502
Noncurrent liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported as liabilities in the funds.
Noncurrent liabilities at year-end consist of
Bonds payable (20,118,892)
Unamortized premium (1,701,800)
Leases payable (50,234)
Some receivables are not available soon enough to pay current-period's
expenditure, and therefore are unavailable in governmental funds.
Delinquent taxes receivable (19,677)
Special assessments receivable 4,853,457
Governmental funds do not report long-term amounts related to the
City's Fire Relief Association Pension Fund
Net pension asset 443,775
Deferred outflows of pension resources 660,947
Deferred inflows of pension resources (54,800)
Governmental funds do not report a liability for accrued interest until
due and payable.(280,376)
Internal service funds are used by management to charge the costs of various services to
individual funds. The assets and liabilities of certain internal service funds are included in
governmental activities in the statement of net position.(1,966,247)
Total Net Position - Governmental Activities 113,418,663$
December 31, 2024
City of Brooklyn Center, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
The notes to the financial statements are an integral part of this statement.
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(Formerly
Nonmajor)
Tax (Formerly Major)Special
Increment Debt Assessment
General District No. 3 Service Construction
Revenues
Taxes 23,329,835$ -$ -$ -$
Franchise fees - - - -
Special assessments 66,982 - - 583,643
Licenses and permits 913,266 - - -
Intergovernmental 2,356,113 - - -
Charges for services 700,913 3,500 - -
Fines and forfeits 361,302 - - -
Investment earnings (loss)488,405 54,444 - -
Miscellaneous 284,538 7,470 - 5
Total Revenues 28,501,354 65,414 - 583,648
Expenditures
Current
General government 5,656,220 - - -
Public safety 14,835,817 - - -
Public works 3,107,609 - - -
Community services 131,795 - - -
Parks and recreation 4,201,372 - - - Economic development 627,263 709,556 - -
Nondepartmental 508,534 - - -
Capital outlay
Public works - - - 353,062
Economic development 4,996 - - -
Debt service
Principal - - - -
Interest and other - - - -
Bond issuance costs - - - 16,537
Total Expenditures 29,073,606 709,556 - 369,599
Excess (Deficiency) of Revenues
Over (Under) Expenditures (572,252) (644,142) - 214,049
Other Financing Sources (Uses)
Transfers in 123,992 - - -
Administrative services reimbursement 1,765,095 - - -
Other Debt- Principal - - - -
Bonds and leases issued - - - 1,321,137
Premium on bonds issued - - - 133,180
Transfers out (166,700) - - -
Total Other Financing Sources (Uses)1,722,387 - - 1,454,317
Net Change in Fund Balances 1,150,135 (644,142) - 1,668,366
Fund Balances, January 1, as previously presented 13,595,819 21,605,846 5,085,185 -
Change to the financial reporting entity (Note 10)
Change from nonmajor to major - - - (798,565)
Change from major to nonmajor - - (5,085,185) -
Fund Balances, January 1, as adjusted or restated 13,595,819 21,605,846 - (798,565)
Fund Balances, December 31 14,745,954$ 20,961,704$ -$ 869,801$
City of Brooklyn Center, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2024
The notes to the financial statements are an integral part of this statement.
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(Formerly Nonmajor)Other
Street Nonmajor
Reconstruction Governmental Total
-$ 3,416,686$ 26,746,521$
673,702 - 673,702
- 759,349 1,409,974
- - 913,266
11,854 4,379,386 6,747,353
- 976,056 1,680,469
- - 361,302
474,129 707,586 1,724,564
- 112,419 404,432
1,159,685 10,351,482 40,661,583
- 348,956 6,005,176
- 561,418 15,397,235
- 306,002 3,413,611
- - 131,795
- 1,408,788 5,610,160 - 1,764,760 3,101,579
- - 508,534
4,411,344 2,124,813 6,889,219
- - 4,996
- 2,623,796 2,623,796
- 543,761 543,761
45,638 - 62,175
4,456,982 9,682,294 44,292,037
(3,297,297) 669,188 (3,630,454)
- 1,214,234 1,338,226
- - 1,765,095
- (21,069) (21,069)
3,958,863 - 5,280,000
399,082 - 532,262
- (1,171,526) (1,338,226)
4,357,945 21,639 7,556,288
1,060,648 690,827 3,925,834
- 17,795,324 58,082,174
6,282,679 (5,484,114) -
- 5,085,185 -
6,282,679 17,396,395 58,082,174
7,343,327$ 18,087,222$ 62,008,008$
The notes to the financial statements are an integral part of this statement.
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Primary
Government
Amounts reported for governmental activities in the statement of activities are different because
Net Change in Fund Balances - Governmental Funds 3,925,834$
Governmental funds report capital outlay as expenditures. However, in the statement of activities the cost
of those assets is allocated over the estimated useful lives and reported as depreciation expense.
Capital outlay 5,677,752
Depreciation/amortization expense (4,510,360)
The net effect of various miscellaneous transactions involving capital assets is to increase (decrease) net position.Capital contributions to business-type activities, net (1,767,119)
The issuance of long-term debt provides current financial resources to governmental funds, while the
repayment of principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of
premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities.
Principal repayments 2,623,796
Lease amortization 17,455
Long-term debt issued (including premiums on current year bonds)(5,280,000)
Amortization of bond premiums (315,420)
Interest on long-term debt in the statement of activities differs from the amount reported in the governmental
fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of
current financial resources. In the statement of activities, however, interest expense is recognized as the interest
accrues, regardless of when it is due.(40,097)
Long-term pension activity related to the City's Fire Relief Association
Pension Fund is not reported in governmental funds.-
Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting
certain revenues cannot be recognized until they are available to liquidate liabilities of the current period.
Property taxes (77,921)
Tax increments (16,893)
Special assessments 429,384
Internal service funds are used by management to charge the costs of various services to individual funds.
The net revenues of certain activities of internal service funds is reported with governmental activities.2,271,403
Change in Net Position - Governmental Activities 2,937,814$
Governmental Funds
For the Year Ended December 31, 2024
City of Brooklyn Center, Minnesota
Reconciliation of the Statement of
Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
General Fund
For the Year Ended December 31, 2024
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 23,409,464$ 23,409,464$ 23,329,835$ (79,629)$
Special assessments 40,000 40,000 66,982 26,982
Licenses and permits 930,055 930,055 913,266 (16,789)
Intergovernmental 2,652,075 2,652,075 2,356,113 (295,962)
Charges for services 493,700 493,700 700,913 207,213
Fines and forfeits 171,000 171,000 361,302 190,302
Investment earnings (loss)129,825 129,825 488,405 358,580
Miscellaneous 180,500 180,500 284,538 104,038
Total Revenues 28,006,619 28,006,619 28,501,354 494,735
Expenditures
Current
General government 6,002,205 6,002,205 5,656,220 345,985
Public safety 15,445,066 15,445,066 14,835,817 609,249
Public works 3,162,947 3,162,947 3,107,609 55,338
Community services 130,000 130,000 131,795 (1,795)
Parks and recreation 4,240,884 4,240,884 4,201,372 39,512
Community development 760,088 760,088 627,263 132,825
Nondepartmental 144,682 144,682 508,534 (363,852)
Capital outlay
Economic development 5,352 5,352 4,996 356
Total Expenditures 29,891,224 29,891,224 29,073,606 817,618
Excess (Deficiency) of Revenues Over
(Under) Expenditures (1,884,605) (1,884,605) (572,252) 1,312,353
Other Financing Sources (Uses)
Transfers in - - 123,992 123,992
Administrative services reimbursement 2,051,200 2,051,200 1,765,095 (286,105)
Transfers out (166,595) (166,595) (166,700) (105)
Total Other Financing Sources (Uses)1,884,605 1,884,605 1,722,387 (162,218)
Net Change in Fund Balances - - 1,150,135 1,150,135
Fund Balances, January 1 13,595,819 13,595,819 13,595,819 -
Fund Balances, December 31 13,595,819$ 13,595,819$ 14,745,954$ 1,150,135$
Budgeted Amounts
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Tax Increment District No. 3
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
Actual Variance with
Original Final Amounts Final Budget
Revenues
Charges for services -$ -$ 3,500$ 3,500$
Investment earnings (loss)60,556 60,556 54,444 (6,112)
Miscellaneous - - 7,470 7,470
Total Revenues 60,556 60,556 65,414 4,858
Expenditures
Current
Economic development
Other services and charges 732,500 732,500 709,556 22,944
Net Change in Fund Balances (671,944) (671,944) (644,142) 27,802
Fund Balances, January 1 21,605,846 21,605,846 21,605,846 -
Fund Balances, December 31 20,933,902$ 20,933,902$ 20,961,704$ 27,802$
Budgeted Amounts
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Statement of Net Position
Proprietary Funds
December 31, 2024
Governmental
411 l 601 602 651 Other Activities -
Water Sanitary Sewer Storm Drainage Enterprise Internal Service
Utility Utility Utility Funds Total Funds
Assets
Current Assets
Cash and investments 925,900$ 4,830,308$ 6,492,069$ 1,218,426$ 13,466,703$ 5,557,821$
Receivables
Interest 363,741 - - - 363,741 -
Accounts, net of allowances 1,359,496 1,382,819 430,328 435,511 3,608,154 38,542
Special assessments 891,159 1,928 - - 893,087 -
Leases 4,166,158 - - - 4,166,158 -
Intergovernmental 11,437 - - 70,225 81,662 18,104
Inventories 102,170 - - 932,167 1,034,337 37,862
Prepaid items - 264,639 - 23,026 287,665 -
Total Current Assets 7,820,061 6,479,694 6,922,397 2,679,355 23,901,507 5,652,329
Noncurrent Assets
Capital assets
Land 20,734 3,389 587,158 2,087,598 2,698,879 -
Easements - - 10,285 - 10,285 -
Land improvements - - - 570,769 570,769 -
Building and improvements 27,149,525 3,194,464 - 16,010,018 46,354,007 166,108
Machinery and equipment 240,053 254,878 161,270 886,553 1,542,754 14,676,366
Street light systems - - - 2,980,836 2,980,836 -
Mains and lines 35,925,382 35,605,675 43,632,322 - 115,163,379 -
Construction in progress 2,894,612 898,161 1,692,228 - 5,485,001 110,000
Total capital assets 66,230,306 39,956,567 46,083,263 22,535,774 174,805,910 14,952,474
Less: accumulated depreciation (31,753,914) (22,665,638) (25,674,767) (15,087,122) (95,181,441) (8,637,149)
Net capital assets 34,476,392 17,290,929 20,408,496 7,448,652 79,624,469 6,315,325
Total Assets 42,296,453 23,770,623 27,330,893 10,128,007 103,525,976 11,967,654
Deferred Outflows of Resources
Deferred pension resources - - - - - 8,720,880
Deferred other postemployment benefit resources - - - - - 2,181,311
Total Deferred Outflows of Resources - - - - - 10,902,191
Liabilities
Current Liabilities
Accounts payable 130,105 10,160 143,319 216,438 500,022 86,514
Contracts payable 50,005 26,721 29,582 139,291 245,599 -
Accrued salaries and wages payable 5,341 1,910 2,437 15,371 25,059 3,177
Accrued interest payable 208,410 81,304 80,288 27,156 397,158 -
Due to other funds - - - - - 383,008
Due to other governments 5,763 - - 131,491 137,254 -
Deposits payable 20,644 7,854 - 367,157 395,655 -
Unearned revenue - - - 89,188 89,188 -
Notes payable 1,033,000 - - - 1,033,000 -
Bonds payable 1,457,500 947,184 600,000 155,000 3,159,684 -
Compensated absences payable - - - - - 540,158
Total Current Liabilities 2,910,768 1,075,133 855,626 1,141,092 5,982,619 1,012,857
Noncurrent Liabilities
Notes payable 9,730,445 - - - 9,730,445 -
Bonds payable 11,560,324 5,580,516 5,422,670 1,998,858 24,562,368 -
Compensated absences payable - - - - - 539,987
Total other postemployment benefits liability - - - - - 4,013,370
Net pension liability - - - - - 9,370,040
Total Noncurrent Liabilities 21,290,769 5,580,516 5,422,670 1,998,858 34,292,813 13,923,397
Total Liabilities 24,201,537 6,655,649 6,278,296 3,139,950 40,275,432 14,936,254
Deferred Inflows of Resources
Deferred pension resources - - - - - 11,863,515
Deferred other postemployment benefit resources - - - - - 766,724
Deferred lease resources 4,117,627 - - - 4,117,627 -
Total Deferred Inflows of Resources 4,117,627 - - - 4,117,627 12,630,239
Net Position
Net investment in capital assets 12,501,126 11,368,199 15,065,871 5,155,503 44,090,699 6,315,325
Unrestricted 1,476,163 5,746,775 5,986,726 1,832,554 15,042,218 (11,011,973)
Total Net Position 13,977,289$ 17,114,974$ 21,052,597$ 6,988,057$ 59,132,917$ (4,696,648)$
Adjustment to reflect the consolidation
of internal service fund activities
related to enterprise funds.(2,730,401)
Net position of business-type
activities 56,402,516$
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2024
Governmental
411 l 601 602 651 Other Activities -
Water Sanitary Sewer Storm Drainage Enterprise Internal Service
Utility Utility Utility Funds Total Funds
Operating Revenues
Sales and user fees 4,968,351$ 5,560,917$ 2,105,576$ 11,009,646$ 23,644,490$ 2,940,979$
Cost of sales - - - (6,837,394) (6,837,394) -
Gross Profit 4,968,351 5,560,917 2,105,576 4,172,252 16,807,096 2,940,979
Charges for services - - - 1,111,569 1,111,569 -
Total Operating Revenues 4,968,351 5,560,917 2,105,576 5,283,821 17,918,665 2,940,979
Operating Expenses
Personal services 773,647 298,050 383,891 2,481,353 3,936,941 128,609
Supplies 581,857 25,601 22,114 100,650 730,222 551,513
Other services 1,158,202 4,129,945 433,236 2,075,278 7,796,661 368,376
Insurance 74,827 34,627 5,245 98,898 213,597 77,501
Utilities 311,136 22,802 2,803 414,283 751,024 1,062
Rent - - - 166,845 166,845 -
Depreciation/amortization 1,989,268 1,116,576 1,464,622 470,562 5,041,028 1,081,809
Total Operating Expenses 4,888,937 5,627,601 2,311,911 5,807,869 18,636,318 2,208,870
Operating Income (Loss)79,414 (66,684) (206,335) (524,048) (717,653) 732,109
Nonoperating Revenues (Expenses)
Intergovernmental - - - - - 592,287
Interest earnings 40,409 154,050 216,242 120,153 530,854 203,399
Gain (loss) on sale/disposal of capital assets - - - - - 450,000
Other revenue 119,037 - - 52,307 171,344 461,126
Interest and other costs (374,659) (116,082) (113,510) (53,224) (657,475) -
Total Nonoperating Revenues (Expenses)(215,213) 37,968 102,732 119,236 44,723 1,706,812
Income (Loss) Before Contributions (135,799) (28,716) (103,603) (404,812) (672,930) 2,438,921
Capital Contributions From (to) Other Funds 950,090 412,694 404,335 - 1,767,119 -
Change in Net Position 814,291 383,978 300,732 (404,812) 1,094,189 2,438,921
Net Position, January 1 13,162,998 16,730,996 20,751,865 7,392,869 58,038,728 (7,135,569)
Net Position, December 31 13,977,289$ 17,114,974$ 21,052,597$ 6,988,057$ 59,132,917$ (4,696,648)$
Change in net position
as shown above 1,094,189$
Adjustment to reflect the
consolidation of internal service fund
activities related to enterprise funds.167,518
Change in net position of business-type
activities.1,261,707$
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2024
Governmental
411 l 601 602 651 Other Activities -
Water Sanitary Sewer Storm Drainage Enterprise Internal Service
Utility Utility Utility Funds Total Funds
Cash Flows from Operating Activities
Receipts from customers and users 4,644,918$ 5,449,155$ 2,256,624$ 11,952,899$ 24,303,596$ 3,262,139$
Payments to suppliers (2,103,144) (4,186,603) (536,123) (9,604,102) (16,429,972) (906,632)
Payments to employees (792,689) (304,835) (393,469) (2,547,660) (4,038,653) (1,053,454)
Other operating receipts 130,474 - - 52,307 182,781 461,126
Net Cash Provided (Used) by Operating Activities 1,879,559 957,717 1,327,032 (146,556) 4,017,752 1,763,179
Cash Flows from Noncapital Financing Activities
Intergovernmental grants - - - - - 253,023
Increase (decrease) in due to other funds - - - - - (31,390)
Net Cash Provided (Used) by Noncapital Financing Activities - - - - - 221,633
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (1,449,353) (513,939) (943,183) (38,825) (2,945,300) (2,269,933)
Proceeds from sale of capital assets - - - - - 450,000
Proceeds from issuance of debt 3,305,361 1,145,630 1,652,810 - 6,103,801 -
Principal paid on long-term debt (2,433,250) (919,954) (570,000) (145,000) (4,068,204) -
Interest paid on long-term debt (477,613) (184,749) (168,568) (69,471) (900,401) -
Net Cash Provided (Used) by Capital and Related Financing Activities (1,054,855) (473,012) (28,941) (253,296) (1,810,104) (1,819,933)
Cash Flows from Investing Activities
Interest received (paid) on cash and investments (74,982) 154,050 216,242 120,153 415,463 203,399
Net Increase (Decrease) in Cash and Cash Equivalents 749,722 638,755 1,514,333 (279,699) 2,623,111 368,278
Cash and Cash Equivalents, January 1 176,178 4,191,553 4,977,736 1,498,125 10,843,592 5,189,543
Cash and Cash Equivalents, December 31 925,900$ 4,830,308$ 6,492,069$ 1,218,426$ 13,466,703$ 5,557,821$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss)79,414$ (66,684)$ (206,335)$ (524,048)$ (717,653)$ 732,109$
Adjustments to reconcile operating income to
net cash provided (used) by operating activities
Depreciation 1,989,268 1,116,576 1,464,622 470,562 5,041,028 1,081,809
Other income (expense) related to operations 119,037 - - 52,307 171,344 800,390
(Increase) decrease in assets
Accounts receivable 19,436 12,488 151,048 (91,699) 91,273 11,270
Intergovernmental (5,474) 72,999 - (70,225) (2,700) (18,104)
Special assessments (191,084) - - - (191,084) -
Prepaid items 2,772 (4,084) 4,559 6,857 10,104 4,682
Inventories 67,735 - - 81,133 148,868 2,350
Leases 245,135 - - - 245,135 -
(Increase) decrease in deferred outflows of resources
Deferred pension resources - - - - - 2,655,164
Deferred other postemployment benefit resources - - - - - (1,076,972)
Increase (decrease) in liabilities
Accounts payable (77,896) (66,973) (87,861) (2,021) (234,751) 84,788
Contracts payable 32,020 24,430 10,577 (40,934) 26,093 -
Due to other governments (1,753) - - 44,211 42,458 -
Net pension liability - - - - - (3,476,456)
Accrued salaries and wages (19,042) (6,785) (9,578) (66,307) (101,712) (12,302)
Deposits payable 13,123 (124,250) - (6,439) (117,566) -
Unearned revenue - - - 47 47 -
Compensated absences payable - - - - - (292,662)
Other postemployment benefits liability - - - - - 1,344,601
Increase (decrease) in deferred inflows of resources
Deferred pension resources - - - - - 39,716
Deferred other postemployment benefit resources - - - - - (117,204)
Deferred lease resources (393,132) - - - (393,132) -
Net cash flows provided (used) by operating activities 1,879,559$ 957,717$ 1,327,032$ (146,556)$ 4,017,752$ 1,763,179$
Schedule of Noncash Investing Capital and Financing Activities
Capital assets transferred/disposed (48,740)$ (1,456)$ 48,741$ -$ (1,455)$ -$
Capital assets contributed from other funds 950,090$ 412,694$ 404,335$ -$ 1,767,119$ -$
Amortization of bond premiums 122,481$ 71,862$ 67,304$ 13,987$ 275,634$ -$
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies
A. Reporting Entity
The City of Brooklyn Center (the City) was incorporated in 1911. The City operates under a Home Rule Charter as defined
by Minnesota Statutes which provides for a Mayor Council form of government . The governing body consists of a Mayor
and four City Council members. The Council exercises legislative authority and determines all matters of policy. The
Council appoints the city administrator who is responsible for the proper administration of all affairs relating to the City.
The City has considered all potential units for which it is financially accountable, and other organizations for which the
nature and significance of their relationship with the City are such that exclusion would cause the City’s financial
statements to be misleading or incomplete. The Governmental Accounting Standards Board (GASB) has set forth criteria
to be considered in determining financial accountability. These criteria include appointing a voting majority of an
organization’s governing body, and (1) the ability of the primary government to impose its will on that organization or (2)
the potential for the organization to provide specific benefits to, or impose specific financial burdens on the primary
government. As required by accounting principles generally accepted in the United States of America, these financial
statements present the City and its component units, entities for which the City is considered to be financially
accountable. Component units for which the City has been determined to be fin ancially accountable can be blended with
the primary government or be included as a discrete presentation. Each discretely presented component unit is reported
in a separate column in the government-wide financial statements. Included in the City’s reporting entity, based upon the
application of these criteria, are the following blended component units.
Housing and Redevelopment Authority (HRA)
The HRA was created by the City to carry out certain redevelopment and low rent assistance programs pursuant to state
law. The HRA is primarily responsible for residential development and redevelopment. The City Council serves as the
Board of Directors for the HRA, with the power to levy taxes and enter into contracts. The Council reviews and approves
the tax levy and all expenditures for the HRA which is reported as a special revenue fund. The HRA does not issue
separate financial statements. Financial information may be obtained at the City’s offices.
Economic Development Authority (EDA)
The EDA was created pursuant to Minnesota statutes 469.090 through 469.108 to carry out economic and industrial
development and redevelopment within the City in accordance with policies established by the City Council. The
governing board for the EDA is the City Council, with the power to issue bonds and enter into contracts. The council
reviews and approves major community development improvement activities. City general obligation tax increment
financing bonds are issued to finance EDA activities which is reported as a special revenue fund. The EDA does not issue
separate financial statements. Financial information may be obtained at the City’s offices.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the activities of the City and its component units. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain
legally separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly
benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary funds. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in
the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated
absences, other postemployment benefits, and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the
current period. All other revenue items are considered to be measurable and available only when cash is received by the
City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded
on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in
which the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property
taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year for
which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility
requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the
resources are required to be used or the year when use is first permitted, matching requirements, in which the City must
provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are
provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions
must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major governmental funds:
The General fund is the government’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The Tax Increment District No. 3 special revenue fund accounts the collection of tax increment generated revenues for
parcels within the District. These funds are used to finance the various redevelopment activities throughout the City.
This fund also provides the resources to repay the debt service on bonds issued to finance these redevelopment
activities.
The Special Assessment Construction capital project fund accounts for the resources and expenditures required for
the acquisition and construction of capital facilities or improvements financed wholly or in part by special
assessments levied against benefited properties.
The Street Reconstruction capital project fund accounts for the resources and expenditures required for the
acquisition and construction of capital facilities or improvements financed wholly or in part by franchise fees.
The City reports the following major proprietary funds:
The Water fund accounts for the water service charges which are used to finance the pumping, treatment and
distribution of water to customers. Administration, wells, water treatment, water storage and distribution are included.
The Sanitary Sewer fund accounts for the wastewater service charges which are used to finance the collection and
pumping of sanitary sewage through a system of sewer lines and lift stations . Sewage is treated by the Metropolitan
Council Environmental Services whose fees represent about 60 percent of the fund’s operating expenses.
The Storm Drainage Utility fund accounts for collection and treatment of surface runoff water that does not require
sanitary wastewater treatment. It incorporates not only the storm sewer collection system, but also structures such
as holding ponds and facilities to improve water quality. Fees are based upon the quantity of water running off a
property and vary with both size and absorption characteristics of the parcel.
Additionally, the City reports the following fund types:
Internal Service funds are used to account for central garage services, health care insurance benefits for retired
employees, compensated absences and pension activity provided to other departments of the City on a cost
reimbursement basis.
As a general rule the effect of interfund activity has been eliminated from government-wide financial statements.
Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they
involved external organizations, such as buying goods and services or payment in lieu of taxes, are similarly treated when
they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the City’s
internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the
portion of tap fees intended to recover the cost of connecting new customers to the system. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
D. Assets, Deferred Outflows of Resources Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance
Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments
with original maturities of three months or less from the date of acquisition. The proprietary funds’ portion in the
government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of
the statements of cash flows.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of
the funds.
The City may invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the
highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a
final maturity of thirteen months or less.
3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations
rated “AA” or better.
4. General obligations of the Minnesota Housing Finance Agency rated “A” or better.
5. Obligation of a school district with an original maturity not exceeding 13 months and (i ) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute
section 126C.55.
6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System.
7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality
category by at least two nationally recognized rating agencies, and maturing in 270 days or less.
8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions
qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers.
9. Guaranteed investment contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic
branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt
obligations were rated in one of the top two rating categories by a nationally recognized rating agency.
Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the
pool is the same as the fair value of the shares.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1
inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level
3 inputs are significant unobservable inputs. The City’s recurring fair value measurements are listed in detail on page 6 2
and are valued using quoted market prices (Level 1 inputs).
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
The City has the following recurring fair value measurements as of December 31, 2024:
• Negotiable certificates of deposits of $7,032,121, municipal bonds of $25,207,627, federal agency securities of
$4,025,480 and U.S. treasury securities of $2,149,846 are valued using a matrix pricing model (Level 2 inputs).
The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the
League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City’s investment in
this pool is valued at amortized cost, which approximates fair value. There are no restric tions or limitations on
withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the
amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series
withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any
charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be
obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402 -1240.
Investment Policy
The City’s investment policy follows Minnesota statutes, which reduces the City’s exposure to credit, custodial credit and
interest rate risks. Specific risk information for the City is as follows:
• Custodial Credit Risk - For investments, custodial credit risk is the risk that in the event of a failure of the
counterparty, the government would not be able to recover the value of its investment or collateral securities that
are in the possession of an outside party. As of December 31, 2024 all investments were insured or registered, or
securities were held by the City or its agent in the City’s name.
• Credit Risk - Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. State law limits investments in commercial paper that is rated in the highest quality category by at
least two nationally recognized rating agencies. The City’s investment policy does not further limit the ratings of
their investments. The policy also requires that any counterparty in investment transactions be pre-qualified and
approved by the City Council and that the portfolio be diversified to limit potential losses on individual securities.
• Concentration Risk - The City’s investment policy does requires that the investment portfolio be diversified to
minimize potential losses on individual securities. As of the year end, the City had portfolio concentrations in
excess of five percent (excluding external investment pools) in the following federal agencies: Federal Home
Loan Bank (6.3 percent)
• Interest Rate Risk - The City’s investment policy mitigates interest rate risk by structuring the investment portfolio
so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity; and by investing operating funds primarily in short-term securities.
The City’s policy restricts investments to investments maturing no more than six years from the date of purchase.
No more than ten percent of the City’s portfolio at any time shall be invested in securities with maturities of more
than five years. The policy also states that the portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably expected.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Property Taxes
The City Council annually adopts a tax levy and certifies it to the County in December for collection the following year. The
County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable
property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected
by the County Treasurer and tax settlements are made to the City during January, June and November each year.
Delinquent taxes receivable include the past six years' uncollected taxes. Delinquent taxes have been offset by deferred
inflow of resources for delinquent taxes not received within 60 days after year end in the fund financial statements.
Accounts Receivable
Accounts receivable include amounts billed for services provided before year end. Delinquent utility charges are annually
certified to the county for collection. As a result, there is no allowance for uncollectable amounts in the enterprise funds.
Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Special assessments are recognized as
revenue when they are annually certified to the County or received in cash or within 60 days after year end. All
governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial
statements.
Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business -type
activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
Inventories and Prepaid Items
Inventories in the governmental funds are reported using the consumption method and valued at cost, using the first
in/first out (FIFO) method. Inventories in the proprietary funds are valued at cost, using the weighted average method in
the Municipal Liquor and Heritage Center of Brooklyn Center funds and the FIFO method in all other funds.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expense
when consumed rather than when purchased.
Lease Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received during the
lease term.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of
the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized
on a straight-line basis over the term of the lease.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Assets Held for Resale
Assets held for resale represent various property purchases made by the City with the intent to sell in order to increase tax
base or to attract new business. These assets are stated at the lower of cost or acquisition value. During the year ended
December 31, 2024 management has reviewed the cost value reported for these assets and has indicated the properties
are fairly presented for financial purposes.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), are reported in the applicable governmental or business-type activities columns in the government-wide
financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more than the amounts in the
table listed below and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. In the case of initial capitalization of general infrastructure assets
(i.e., those reported by governmental activities) the City chose to include items dating back to June 30, 1980. The City had
already accounted for its prior infrastructure at historical cost for the initial reporting of these assets. As the City
constructs or acquires capital assets each period, including infrastructure assets, they are capitalized at historical cost.
Donated capital assets are recorded at acquisition value at the date of donation.
Assets Amount
Infrastructure 250,000$
Buildings and Building Improvements 50,000
Land Improvements 25,000
Heavy Equipment 25,000
Furniture and Furnishings 10,000
Motorized Vehicles 10,000
Technology Equipment 10,000
Land Easements 10,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment of the City, as well as the component units, are depreciated using the straight line method
over the following estimated useful lives:
Assets Years
Temporary Easements Based on Contract
Land Improvements 25
Buildings and Structures 25
Water and Sewer Mains and Lines, Wells and Storage Tanks, Sewer Lift Stations 25
Infrastructure 25
Street Light Systems 15
Machinery and Equipment 5 - 15
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Deferred Outflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension
Resources and deferred other postemployment benefit resources, are reported only in the statement of net position.
These items result from actuarial calculations and current year contributions made subsequent to the respective
measurement dates.
Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation
and vested sick leave pay is accrued in the Public Employee Compensated Absences internal service fund. In accordance
with the provisions of Statement of Governmental Accounting Standards No. 16, Accounting for Compensated Absences,
a liability is recognized for that portion of accumulating sick leave benefits that is vested. The City pays out up to 230
hours of vacation upon separation and one third of accrued sick leave time. The Public Employee Compensated Absences
internal service fund is typically used to liquidate the applicable liabilities.
Postemployment Benefits Other Than Pensions
Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be
receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in group
plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage
immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially
determined, in accordance with GASB Statement 75, at January 1, 2024. The Public Employee Retirement internal service
fund is typically used to liquidate the applicable liabilities.
Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA
except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll
paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. The GERP and PEPFP Pension internal service funds are typically used to liquidate
the applicable liabilities.
The total pension expense for the GERP, PEPFP and DCP is as follows:
Single Employer
GERP PEPFP DCP Fire Relief Total
Pension Expense 513,793$ 738,127$ 1,688$ 245,067$ 1,498,675$
Proportionate Share of State's Contribution 3,227 20,106 - - 23,333
Total 517,020$ 758,233$ 1,688$ 245,067$ 1,522,008$
Public Employees Retirement
Association of Minnesota (PERA)
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long -term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type
activities, or proprietary fund type statement of net position. Bond premiums and discounts are amortized over the life of
the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
Bond issuance costs are an expense in the period incurred.
In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Deferred Inflows of Resources
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The government has one type of item, which arises only under a modified accrual basis of accounting that qualifies as
needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental
funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes and special
assessments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available.
Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position.
Deferred pension resources and deferred other postemployment benefit resources are reported only in the
statement of net position and results from actuarial calculations . Deferred lease resources are reported as deferred
inflows resulting from lease amortization calculations. Additionally, imposed nonexchange revenue transactions, state
aid, and capital funding received for subsequent years, is deferred and recognized as an inflow of resources in the period
that the resources are required to be used. This item is reported both in the governmental fund balance sheet and the
statement of net position as a deferred inflow of resources.
Fund Balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which th e
City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council (the Council), which is the City’s highest level of decision-making authority. Committed amounts
cannot be used for any other purpose unless the Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the Council itself or by an official to which the governing body delegates the authority. The Council has adopted a
fund balance policy which delegates the authority to assign amounts for specific purposes to the Finance Director.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Unassigned - The residual classification for the General fund and also negative residual amounts in other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available.
Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund
balance when expenditures are made.
The City has formally adopted a fund balance policy for the General fund. The policy establishes a year-end target
unassigned fund balance amount of 50.0 to 52.0 percent of the next year’s operating budget for cash flow needs (working
capital). At December 31, 2024 unassigned fund balance was 47.9 percent of the subsequent year’s budgeted
expenditures.
Net Position
Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred
inflows of resources. Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquiring capital assets.
b. Restricted net position - Consists of net position balances restricted by limitations imposed on their use through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
c. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net
investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as they are needed.
Note 2: Stewardship, Compliance and Accountability
A. Budgetary Information
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1
of the following year. At least one special City Council meeting is conducted to obtain public comments as required by the
State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 on a basis consistent with accounting principles generally
accepted in the United States of America for the General and special revenue funds; however, the City did not budget for
the Community Development Block Grant, Tax Increment District No. 8, Opioid Settlement and American Rescue Plan Act
funds, which are not legally obligated to complete budgets. All annual appropriations lapse at fiscal year-end. The City
does not use encumbrance accounting.
In August of each year, all departments of the City submit requests for appropriations to the City Manager so that a
budget may be prepared. Before September 30th, the proposed budget is presented to the Council for review and the
proposed levy is adopted. The Council holds public hearings and a final budget and a final tax levy are prepared and
adopted in early December.
The City’s legal level of budgetary control is at the fund level for funds other than the General fund. The legal level of
budgetary control for the General fund is at the department level. The City’s department heads may make transfers of
appropriations within a department with the approval of the City Manager. Transfers of appropriations between
departments require the approval of the City Manager. Transfers of appropriations between funds require the approval of
the Council. Budgeted amounts are as originally adopted, or as amended by the Council. There were no budget
amendments made during the year.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 2: Stewardship, Compliance and Accountability (Continued)
B. Excess of Expenditures Over Appropriations
For the year ended December 31, 2024, expenditures exceeded appropriations in the following fund:
Excess of
Expenditures
Over
Budget Actual Appropriations
Economic Development Authority 602,666$ 1,374,220$ 771,554$
Tax Increment District No. 5 474,337 488,626 14,289
Tax Increment District No. 6 134,115 136,068 1,953
Fund
These over expenditures were funded by revenues in excess of budget and available fund balances.
C. Deficit Fund Equity
The following funds had fund equity deficits at December 31, 2024:
Amount
Nonmajor
Special Revenue
Centerbrook Golf Course 235,626$
Tax Increment District No. 10 3,418
Capital Projects
Capital Reserve Emergency 629,187
Internal Service
EE Retirement Benefit 2,943,249
Pension - GERP 6,766,946
Pension - PEPFP 5,745,729
Fund
These deficits will be funded through future charges for services, tax increments, levies, assessments and interfund
transfers. Internal service fund deficits will be funded through future interfund charges, grant revenues and employee
withholdings.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds
A. Deposits and Investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and
investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside
party. In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of
irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral
pledged equal to 100 percent of the deposits not covered by insurance or bonds.
Authorized collateral in lieu of a corporate surety bond includes:
• United States government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
• General obligation securities of any state or local government with taxing powers which is rated “A” or better by a
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service;
• General obligation securities of a local government with taxing powers may be pledged as collateral against funds
deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard
& Poor’s Corporation; and
• Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity.
At year end, the City’s carrying amount of deposits was a $138,510 while the bank balance was $330,564.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Investments
As of December 31, 2024, the City had the following investments that are insured or registered, or securities held by the
city or it’s agent in the City’s name:
Credit Segmented
Quality/Time
Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3
Pooled Investments at Amortized Costs
4M Fund N/A less than 1 year 23,287,517$ -$ -$ -$
Brokered Money Market Accounts N/A less than 1 year 2,091,756 - - -
Non-pooled Investments at Fair Value
Negotiable Certificate of Deposits N/A less than 1 year 4,612,798 - 4,612,798 -
Negotiable Certificate of Deposits N/A 1 to 5 years 2,419,323 - 2,419,323 -
U.S. Treasury Securities AAA less than 1 year 1,465,890 - 1,465,890 -
U.S. Treasury Securities AAA 1 to 5 years 683,956 - 683,956 -
Federal Agency Securities AAA less than 1 year 968,770 - 968,770 -
Federal Agency Securities AAA 1 to 5 years 3,056,710 - 3,056,710 -
Municipal Bonds A1 or better less than 1 year 3,886,749 - 3,886,749 -
Municipal Bonds A1 or better 1 to 5 years 21,320,878 - 21,320,878 -
Total Investments 63,794,347$ -$ 38,415,074$ -$
(1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk.
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
Types of Investments
Fair Value Measurement Using
Cash on Hand
Cash in the possession of the City, consisting of petty cash and change funds, totals $16,405.
A reconciliation of cash and investments as shown on the statement of net position for the City is as follows:
Primary
Government
Deposits - City Pooled Account 138,510$
Investments - City Pooled Account 63,794,347
Cash on Hand 16,605
Total Cash and Investments 63,949,462$
Notes Receivable
The Revolving Loan Fund disbursed a loan to Phu Bia in the amount of $70,000 on February 15, 2022. It will be repaid in
85 monthly payments of $871 with an interest rate of 1.25 percent. This loan is secured by the borrower. The balance as
of December 31, 2024 is $58,944.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
The Revolving Loan Fund disbursed a loan to Taste of Africa in the amount of $30,000 on February 15, 2022. It will be
repaid in 84 monthly payments of $871 with an interest rate of 1.25 percent. This loan is secured by the borrower. The
balance as of December 31, 2024 is $26,189.
Lease Receivable
The City leases various tower sites to companies. These agreements contain various renewal and extension options. The
latest maturity date is projected to be in in 2039, however, the City anticipates new or revised leasing arrangements to
occur in the future. Additionally, the City has leased a portion of their building for a Logis Hot Site effective
January 1, 2022 for 48 months until December 31, 2025. Furthermore, the EDA has leased a building the Phu Bia Grocery
effective February 15, 2022 for monthly lease payments 120 months until January 15, 2032.
Long-term lease activity for the year ended December 31, 2024 was as follows:
Current Year Balance
Issue Inflow of at
Date Resources Year End
Verizon Tower Lease 1 1/1/2022 2.71 %62,805$ 946,687$
AT&T Tower Lease 2 4/1/2022 2.71 61,967 704,446
Sprint Tower 1 1/1/2022 2.71 60,444 681,920
T-Mobile Tower 2 1/1/2022 2.71 58,153 144,624
T-Mobile Tower 3 1/1/2022 2.71 52,100 718,856
Verizon Tower Lease 2 1/1/2022 2.71 63,318 821,752
Zayo Group Tower 2 1/1/2022 2.71 15,700 109,800
Dish Wireless Tower Lease 11/1/2022 5.43 3,023 38,075
Phu Bia Grocery Lease 2/15/2022 2.71 39,777 434,289
Logis Hot Site Lease 1/1/2022 2.22 11,494 11,494
Total 4,611,943$
Discount
Description Rate
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
C. Capital Assets
Capital asset activity for the City for the year ended December 31, 2024 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not Being Depreciated/Amortized
Land 5,638,873$ -$ -$ 5,638,873$
Perpetual easements 320,904 - - 320,904
Construction in progress 2,103,427 2,970,645 (662,533) 4,411,539
Total Capital Assets
not Being Depreciated/Amortized 8,063,204 2,970,645 (662,533) 10,371,316
Capital Assets Being Depreciated/Amortized
Temporary easements - - - -
Buildings and improvements 26,570,298 21,805 - 26,592,103
Land improvements 18,348,638 674,643 - 19,023,281
Machinery and equipment 15,305,454 3,066,006 (745,907) 17,625,553
Leased equipment (intangible right to use asset)97,434 - - 97,434
Street infrastructure 80,664,797 - - 80,664,797
Total Capital Assets
Being Depreciated/Amortized 140,986,621 3,762,454 (745,907) 144,003,168
Less Accumulated Depreciation/Amortization for
Temporary easements - - - -
Buildings and improvements (19,755,300) (895,937) - (20,651,237)
Land improvements (8,142,764) (594,093) - (8,736,857)
Machinery and equipment (9,340,034) (1,279,446) 745,907 (9,873,573)
Leased equipment (intangible right to use asset)(31,001) (17,715) - (48,716)
Street infrastructure (36,299,296) (2,804,978) - (39,104,274)
Total Accumulated Depreciation/Amortization (73,568,395) (5,592,169) 745,907 (78,414,657)
Total Capital Assets Being Depreciated/Amortized, Net 67,418,226 (1,829,715) - 65,588,511
Governmental Activities Capital Assets, Net 75,481,430$ 1,140,930$ (662,533)$ 75,959,827$
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Restated
Beginning Ending
Balance Increases Decreases Adjustments Balance
Business-type Activities
Capital Assets not Being Depreciated/Amortized
Land 2,698,879$ -$ -$ -$ 2,698,879$
Perpetual easements 10,285 - - - 10,285
Construction in progress 971,078 4,573,250 (59,327) - 5,485,001
Total Capital Assets
not Being Depreciated/Amortized 3,680,242 4,573,250 (59,327) - 8,194,165
Capital Assets Being Depreciated/Amortized
Land improvements 570,769 - - - 570,769
Buildings and improvements 46,091,885 59,327 - 202,795 46,354,007
Machinery and equipment 1,402,130 140,624 - 1,542,754
Street light systems 2,980,836 - - - 2,980,836
Mains and lines 115,366,174 - - (202,795) 115,163,379
Total Capital Assets
Being Depreciated/Amortized 166,411,794 199,951 - - 166,611,745
Less Accumulated Depreciation/Amortization for
Land improvements (419,398) (29,155) - - (448,553)
Buildings and improvements (24,672,294) (214,831) - - (24,887,125)
Machinery and equipment (1,129,141) (109,746) - - (1,238,887)
Street light systems (971,072) (190,934) - - (1,162,006)
Mains and lines (62,947,053) (4,496,362) - (1,455) (67,444,870)
Total Accumulated Depreciation/Amortization (90,138,958) (5,041,028) - (1,455) (95,181,441)
Total Capital Assets Being Depreciated/Amortized, Net 76,272,836 (4,841,077) - (1,455) 71,430,304
Governmental Activities Capital Assets, Net 79,953,078$ (267,827)$ -$ (1,455)$ 79,624,469$
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Depreciation expense was charged to functions/programs of the City as follows:
Governmental Activities
General government 187,526$
Public safety 512,590
Public works 3,223,559
Parks and recreation 568,792
Economic development 17,893
Capital assets held by the City's internal service funds are charged
to the various functions based on their usage of assets 1,081,809
Total Depreciation/Amortization Expense - Governmental Activities 5,592,169$
Business-type Activities
Water 1,989,268$
Sanitary Sewer 1,116,576
Storm Drainage 1,464,622
Municipal Liquor Store 119,845
Heritage Center of Brooklyn Center 159,783
Street Light Utility 190,934
Total Depreciation/Amortization Expense - Business-type Activities 5,041,028$
Construction Commitments
The City has active construction projects as of December 31, 2024. The projects include street construction and various
public facilities. At year end the City’s commitments with contractors are as follows:
Contract Remaining
Amount Commitment
ORCHARD LANE EAST IMP PROJECT 8,224,451$ 5,381,669$
Total 8,224,451$ 5,381,669$
Project
D. Interfund Receivables, Payables and Transfers
Due to/from other funds
The General fund has a due from other funds $383,008 to the internal service funds, which represents lending/borrowing
arrangements to cover temporary deficit cash balances at the end of the fiscal year. Balances will be paid with future tax
increments, interoperating revenues and/or interfund transfers. Furthermore, internal borrowings related to tax increment
financing totaled $3,418 from the EDA fund to nonmajor tax increment districts.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Interfund Transfers
Nonmajor
General Governmental
Fund Funds Total
Transfers Out
General Fund -$ 166,700$ 166,700$
Nonmajor Governmental Funds 123,992 1,047,534 1,171,526
Total 123,992$ 1,214,234$ 1,338,226$
Transfers In
During the year ended December 31, 2024 the City made the following transfers:
• From the General fund to nonmajor governmental funds for current and future technology needs ($1 00,000) and
cash flow purposes for the Centerbrook Golf Course ($66,700).
• From the nonmajor HRA fund to the nonmajor EDA fund ($579,580) as an annual cash inflow.
• From the nonmajor Tax Increment District No. 5 fund to the Debt Service for annual debt service cash flows.
E. General Long-term Debt
General Obligation Tax Increment Bonds
The following bonds were issued for redevelopment projects. The additional tax increments resulting from increased tax
capacity of redevelopment properties will be used to retire the related debt.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
Governmental
G.O. Tax Increment Bonds of 2016B 2,075,000$ 2.00 - 2.50 %12/08/16 02/01/29 1,745,000$
Rate
Interest
Description
The annual debt service requirements to maturity for general obligation tax increment bonds are as follows:
Year Ending
December 31 Principal Interest Total
2025 335,000$ 36,875$ 371,875$
2026 340,000 29,700 369,700
2027 350,000 21,938 371,938
2028 355,000 13,563 368,563
2029 365,000 4,563 369,563
Total 1,745,000$ 106,639$ 1,851,639$
General Obligation Tax Increment Bonds
Governmental Activities
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
G.O. Special Assessment (Improvement) Bonds
The following bonds were issued to finance various improvements and will be repaid primarily from special assessments
levied on the properties benefiting from the improvements. Some issues, however, are partly financed by ad valorem tax
levies. All special assessment debt is backed by the full faith and credit of the City. Each year the combined assessment
and tax levy equals 105 percent of the amount required for debt service. The excess of 5 percent is to cover any
delinquencies in tax or assessment payments.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
Governmental
G.O. Improvement Bonds of 2015A 3,416,248$ 2.00 - 2.50 %7/9/2015 2/1/2026 713,892$
G.O. Improvement Bonds of 2016A 1,820,000 0.95 - 1.85 10/13/2016 2/1/2027 585,000
G.O. Improvement Bonds of 2017A 3,735,000 2.375 - 3.00 6/8/2017 2/1/2028 1,570,000
G.O. Improvement Bonds of 2018A 3,835,000 3.00 - 5.00 6/11/2018 2/1/2029 2,035,000
G.O. Improvement Bonds of 2019A 3,355,000 4.00 - 5.00 9/12/2019 2/1/2030 2,275,000
G.O. Improvement Bonds of 2020A 1,955,000 1.00 - 2.00 11/24/2020 2/1/2031 1,520,000
G.O. Improvement Bonds of 2021A 3,005,000 2.00 - 4.00 9/22/2021 2/1/2032 2,475,000
G.O. Improvement Bonds of 2022A 2,095,000 4.00 - 5.00 12/15/2022 2/1/2033 1,920,000
G.O. Improvement Bonds of 2024A 5,280,000 4.00 - 5.00 6/13/2024 2/1/2035 5,280,000
Total G.O. Special Assessments Bonds - Governmental 18,373,892
Business-type
G.O. Improvement Bonds of 2015A 1,823,752 2.00 - 2.50 7/9/2015 2/1/2026 381,108
Total 18,755,000$
Rate
Interest
Description
The annual debt service requirements to maturity for general obligation special assessments bonds are as follows:
Year Ending
December 31 Principal Interest Total
2025 2,355,316$ 688,662$ 3,043,978$
2026 2,868,576 556,070 3,424,646
2027 2,555,000 453,669 3,008,669
2028 2,415,000 362,475 2,777,475
2029 2,060,000 280,125 2,340,125
2030 - 2034 5,510,000 575,488 6,085,488
2035 610,000 12,200 622,200
Total 18,373,892$ 2,928,689$ 21,302,581$
G.O. Special Assessment Bonds
Governmental Activities
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Year Ending
December 31 Principal Interest Total
2025 189,684$ 7,157$ 196,841$
2026 191,424 2,392 193,816
Total 381,108$ 9,549$ 390,657$
G.O. Special Assessment Bonds
Business-type Activities
G.O. Revenue Bonds
The following bonds were issued to finance capital improvements in the enterprise funds. They will be retired from net
revenues of the enterprise funds.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
Business-type
Revenue Refunding Bonds of 2015B 1,660,000$ 2.00 - 2.50 %7/9/2015 2/1/2026 170,000$
Revenue Bonds of 2016A 3,605,000 0.95 - 1.85 10/13/2016 2/1/2027 1,160,000
Revenue Bonds of 2017A 4,625,000 2.375 - 3.00 6/8/2017 2/1/2028 2,020,000
Revenue Bonds of 2018A 4,350,000 3.00 - 5.00 6/11/2018 2/1/2029 2,425,000
Revenue Bonds of 2019A 4,790,000 4.00 - 5.00 9/12/2019 2/1/2030 3,430,000
Revenue Bonds of 2020A 2,830,000 1.00 - 2.00 11/24/2020 2/1/2031 2,040,000
Revenue Bonds of 2021A 5,005,000 2.00 - 4.00 9/22/2021 2/1/2032 4,185,000
Revenue Bonds of 2022A 2,240,000 4.00 - 5.00 12/15/2022 2/1/2033 2,075,000
Revenue Bonds of 2024A 5,540,000 4.00 - 5.00 6/13/2024 2/1/2035 5,540,000
Total 23,045,000$
Rate
Interest
Description
The annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending
December 31 Principal Interest Total
2025 2,815,000$ 837,760$ 3,652,760$
2026 3,290,000 686,456 3,976,456
2027 3,430,000 560,469 3,990,469
2028 3,150,000 442,122 3,592,122
2029 2,730,000 406,337 3,136,337
2030 - 2034 6,950,000 656,119 7,606,119
2035 680,000 13,600 693,600
Total 23,045,000$ 3,602,863$ 26,647,863$
G.O. Revenue Bonds
Business-type Activities
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
G.O. Lease Revenue Bonds
These notes were issued to fund the construction of a City-owned municipal liquor store.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
Lease Revenue Bonds of 2019B 2,520,000$ 3.00 - 4.00 %09/18/19 02/01/35 2,000,000$
Rate
Interest
Description
The annual debt service requirements to maturity for notes payable are as follows:
Year Ending
December 31 Principal Interest Total
2025 155,000$ 61,700$ 216,700$
2026 160,000 55,400 215,400
2027 165,000 48,900 213,900
2028 170,000 43,050 213,050
2029 175,000 37,875 212,875
2030 - 2034 965,000 105,825 1,070,825
2035 - 2036 210,000 3,150 213,150
Total 2,000,000$ 355,900$ 2,355,900$
Business-type Activities
General Obligation Lease Revenue Bonds
General Obligation Revenue Note
The General Obligation Revenue Note was financed by the MN Public Facilities Authority Drinking Water State Revolving
Fund for the construction of a new water treatment plant.
Balance
Authorized Issue Maturity at
and Issued Date Date Year End
PFA Revenue Note of 2015 19,622,797$ 1.00 %01/20/15 08/20/34 10,763,445$
Rate
Interest
Description
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
The annual debt service requirements to maturity for notes payable are as follows:
Year Ending
December 31 Principal Interest Total
2025 1,033,000$ 108,030$ 1,141,030$
2026 1,043,000 97,700 1,140,700
2027 1,053,000 87,270 1,140,270
2028 1,064,000 76,740 1,140,740
2029 1,075,000 66,100 1,141,100
2029 - 2033 5,495,445 167,150 5,662,595
Total 10,763,445$ 602,990$ 11,366,435$
General Obligation Revenue Notes
Governmental Activities
Annual revenues from charges for services, principal and interest payments, and percentage of revenue required to cover
principal and interest payments are as follows:
Sanitary Storm Municipal
Water Sewer Drainage Liquor
Revenue 4,968,351$ 5,560,917$ 2,105,576$ 2,141,600$
Principal and Interest 2,910,863 1,104,703 738,568 214,471
Percent of Revenue 58.6%19.9%35.1%10.0%
Leases Payable
The City leases golf carts for use at the Centerbrook Golf Course. Lease payments amount to $18,900 annually and will
mature on September 11, 2027 at a discount rate of 2.42 percent.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2024, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
General obligation
tax increment bonds 2,075,000$ -$ (330,000)$ 1,745,000$ 335,000$
General obligation
special assessment bonds 15,387,688 5,280,000 (2,293,796) 18,373,892 2,355,316
Bond premium 1,386,380 532,262 (216,842) 1,701,800 -
Less amounts for
unamortized discounts - - - - -
Total Bonds Payable 18,849,068 5,812,262 (2,840,638) 21,820,692 2,690,316
Leases Payable 67,689 - (17,455) 50,234 17,882
Compensated Absences
Payable 1,372,807 (292,662) 1,080,145 540,158
Governmental Activity
Long-term Liabilities 20,289,564$ 5,812,262$ (3,150,755)$ 22,951,071$ 3,248,356$
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Business-type Activities
Bonds Payable
General obligation
improvement bonds 567,312$ -$ (186,204)$ 381,108$ 189,684$
General obligation
revenue bonds 20,220,000 5,540,000 (2,715,000) 23,045,000 2,815,000
General obligation lease
revenue bonds 2,145,000 - (145,000) 2,000,000 155,000
Bond premium 2,007,777 563,800 (275,633) 2,295,944 -
Total Bonds Payable 24,940,089 6,103,800 (3,321,837) 27,722,052 3,159,684
Leases Payable - - - - -
Notes Payable
General obligation
revenue notes 11,785,445 - (1,022,000) 10,763,445 1,033,000
Business-type Activity
Long-term Liabilities 36,725,534$ 6,103,800$ (4,343,837)$ 38,485,497$ 4,192,684$
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Conduit Debt Obligations with Limited Commitments
From time to time, the City has issued Housing Revenue Bonds, Health Care Facilities Revenue Bonds and School
Facilities Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of
rental housing, educational or health care 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 issuance. Neither
the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of December 31, 2024, there were two series of fixed rate Multifamily Housing Revenue Refunding bonds, one Housing
Revenue Development Refinancing Note, two Healthcare Revenue Notes, four Senior Housing Development Revenue
Notes, three Multifamily Housing Revenue bonds, One Multifamily Housing Note and four Charter School Lease Revenue
bonds outstanding. The aggregate amount of the conduit debt as of December 31, 2024 is $90,366,645.
F. Components of Fund Balance
At December 31, 2024 portions of the City’s fund balance are not available for appropriation due to not being in spendable
form (nonspendable), legal restrictions (restricted), City Council action (committed) and policy and/or intent (assigned).
The following is a summary of the components of fund balance:
Tax Other
Increment Street Street Governmental
General District No. 3 Reconstruction Reconstruction Funds Total
Nonspendable
Inventories 183,346$ -$ -$ -$ 3,694$ 187,040$
Prepaid items 6,753 - - - - 6,753
Total 190,099$ -$ -$ -$ 3,694$ 193,793$
Restricted
Debt service -$ -$ -$ -$ 5,015,909$ 5,015,909$
Tax increment financing - 20,961,704 - - 3,412,008 24,373,712
Economic development - - - - 1,866,861 1,866,861
Law enforcement enhancements - - - - 72,619 72,619
Opiods - - - - 118,959 118,959
Community prevention, health
and safety - - - - 1,399,768 1,399,768
Municipal street projects - - - 7,343,327 4,985,547 12,328,874
Total -$ 20,961,704$ -$ 7,343,327$ 16,871,671$ 45,176,702$
Committed
Community prevention, health
and safety -$ -$ -$ -$ 180,374$ 180,374$
Technology improvements - - - - 433,121 433,121
Capital projects - - - - 1,470,287 1,470,287
Total -$ -$ -$ -$ 2,083,782$ 2,083,782$
Unassigned 14,555,855$ -$ 869,801$ -$ (871,925)$ 14,553,731$
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide
A. Plan Description
General Employees Retirement Plan (General Plan)
Public Employees Police and Fire Plan (Police and Fire Plan)
B. Benefits Provided
General Employee Plan Benefits
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only
be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is
“vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and
reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least
one year of service qualify for a retirement benefit.
General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary
for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are
used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step
or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General
Plan members receive 1.2 percent of the highest average salary for each of the first 10 years of service and 1.7 percent
for each additional year. Under the Level formula, General Plan members receive 1.7 percent of highest average salary for
all years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of
service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55
if they have three or more years of service. Early retirement benefits are reduced by .25 percent for each month under
age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month
the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit
at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early
retirement begins at age 55 with an actuarial reduction applied to the benefit.
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered
according to Minnesota Statutes chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes chapter 356 defines each
plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section
401(a) of the Internal Revenue Code.
Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and
other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is
required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion
criteria.
Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the
membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other
PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan
coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the
entity’s governing body. The resolution must state that the position meets plan requirements.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Plan Benefits
C. Contributions
General Employees Fund Contributions
Police and Fire Fund Contributions
Minnesota Statutes chapters 353, 353E, 353G and 356 set the rates for employer and employee contributions.
Contribution rates can only be modified by the state Legislature.
General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the
City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General
Employees Fund for the years ending December 31, 2024, 2023 and 2022, were $833,711, $758,282 and $729,550,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024
and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the
Police and Fire Fund for the years ending December 31, 2024, 2023 and, 2022 were $883,853, $869,104 and $734,786,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of
the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a
maximum of 1.5 percent. The 2024 annual increase was 1.5 percent. Recipients that have been receiving the annuity or
benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a prorated increase.
Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members
hired on or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years.
After five years, vesting increase by 10 percent each full year of service until members are 100 percent vested after ten
years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire
Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of
service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early
retirement benefits are reduced by 0.417 percent each month members are younger than age 55.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent.
Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective
date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but
less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
D. Pension Costs
General Employees Fund Pension Costs
City's Proportionate Share of the Net Pension Liability 4,654,385$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 120,353
Total 4,774,738$
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 434,833$ -$
Changes in Actuarial Assumptions 22,562 1,733,011
Net Difference Between Projected and Actual Investment Earnings - 1,300,833
Changes in Proportion 78,249 37,620
Contributions Paid to PERA Subsequent to the Measurement Date 423,259 -
Total 958,903$ 3,071,464$
During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees
Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan
pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to
meet the definition of a special funding situation. The City recognized $214,145 for the year ended December 31, 2024 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-
behalf contributions to the General Employees Fund.
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability
was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s
participating employers. The City’s proportionate share was 0.1259 percent at the end of the measurement period and
0.1231 percent for the beginning of the period.
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
For the year ended December 31, 2024, the City recognized pension expense of $513,793 for its proportionate share of
the General Employees Plan’s pension expense. In addition, the City recognized an additional $3,227 as pension expense
(and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General
Employees Fund.
At December 31, 2024, the City reported a liability of $4,654,385 for its proportionate share of the General Employees
Fund’s net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s
contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net
pension liability associated with the City totaled $120,353.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
(1,408,129)$
(204,090)
(566,869)
(356,732)
Police and Fire Fund Pension Costs
City's Proportionate Share of the Net Pension Liability 4,715,655$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 179,759
Total 4,895,414$
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the $28.4 million in supplemental state aid because this contribution was not considered to
meet the definition of a special funding situation. The City recognized $101,786 for the year ended December 31, 2024 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-
behalf contributions to the Police and Fire Fund.
The $423,259 reported as deferred outflows of resources related to pensions resulting from the City's contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
2025
2026
2027
The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024.
The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation,
additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not
meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1,
2024. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90
percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent
funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated with
the City totaled $179,759.
For the year ended December 31, 2024, the City recognized pension expense of $738,127 for its proportionate share of
the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $20,106 as pension expense
(grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire
Fund.
2028
At December 31, 2024, the City reported a liability of $4,715,655 for its proportionate share of the Police and Fire Fund’s
net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share
of the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received
from all of PERA’s participating employers. The City’s proportionate share was 0.3584 percent at the end of the
measurement period and 0.3453 percent for the beginning of the period.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 1,823,240$ -$
Changes in Actuarial Assumptions 5,291,180 6,693,320
Net Difference Between Projected and Actual Investment Earnings - 1,834,737
Changes in Proportion 203,481 263,994
Contributions Paid to PERA Subsequent to the Measurement Date 444,076 -
Total 7,761,977$ 8,792,051$
(470,039)$
1,273,520
(648,256)
(1,738,043)
108,668
E. Long-term Expected Return on Investment
Domestic Equity 33.5 %5.10 %
International Equity 16.5 5.30
Fixed Income 25.0 0.75
Private Markets 25.0 5.90
Total 100.0 %
Asset Class Allocation on Investment
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
The $444,076 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be
recognized in pension expense as follows:
2025
2026
2027
2028
2029
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on
a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of
expected future rates of return are developed for each major asset class. These ranges are combined to produce an
expected long-term rate of return by weighting the expected future rates of return by the target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Long-term
Target Expected Return
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
F. Actuarial Assumptions
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions
Changes in Plan Provisions
- The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to
reflect the changes in assumptions.
The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as
of June 30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan
investments used to determine the total liability is 7.0%. The 7.0% assumption is based on a review of inflation and
investment return assumptions from a number of national investment consulting firms. The review provided a range of
investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range.
Inflation is assumed to be 2.25% for the General Employees Plan and Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1.0% for the Police and
Fire Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of
service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual
increments from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality
rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are
adjusted slightly to fit PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was
last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023
actuarial valuation. The Police and Fire Plan were reviewed in 2024. PERA anticipates the experience study will be
approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025
actuarial valuation.
- Rates of merit and seniority were adjusted, resulting in slightly higher rates.
- Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight
adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members.
- Minor increase in assumed withdrawals for males and females.
- Lower rates of disability.
- Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent
experience study.
- Minor changes to form of payment assumptions for male and female retirees.
- Minor changes to assumptions made with respect to missing participant data.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund
Changes in Actuarial Assumptions
Changes in Plan Provisions
G. Discount Rate
H. Pension Liability Sensitivity
1 Percent 1 Percent
Decrease (6.0%)Current (7.0%)Increase (8.0%)
General Employees Fund 10,165,925$ 4,654,385$ 120,640$
Police and Fire Fund 11,144,013 4,715,655 (563,373)
I. Pension Plan Fiduciary Net Position
- The State contribution of $9 million per year will continue until the earlier of 1) both the Police and Fire Plan and the
State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of
assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded
status for one year.
- The additional $9 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three
consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was
previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July
1, 2048 if earlier).
Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial
report that includes financial statements and required supplementary information. That report may be obtained on the
Internet at www.mnpera.org.
The discount rate used to measure the total pension liability in 2024 was 7.0 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at rates set
in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and
Fire Plans were projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
- There were no changes in actuarial assumptions since the previous valuation.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 5: Other Pension Plans
The City has City Council members that are covered by the Defined Contribution Plan (DCP), a multiple -employer deferred
compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue
Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses,
therefore, there is no future liability to the employer. Minnesota statutes, chapter 353d.03, specifies plan provisions,
including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5 percent of salary which is matched by the elected official's
employer. Employees who are paid for their services may elect to make member contributions in an amount not to exceed
the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of
the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0
percent of employer contributions and twenty-five hundredths of 1.0 percent (0.25 percent) of the assets in each
member's account annually.
Total contributions made by the City during the fiscal year 2024 were:
Employee Employer Employee Employer Required Rate
1,688$ 1,688$ 5.00%5.00%5.00%
Percentage of
Contribution Amount Covered Payroll
Additional City employees belonging to International Union of Operating Engineers (IUOE) are participants in a multiple -
employer defined benefit pension plan Central Pension Fund of the International Union of Operating Engineers and
Participating Employers (CPF) administered by the Board of Trustees of the Central Pension Fund. The plan is a cost -
sharing pension multi-employer plan that is not a state or local governmental pension plan. The plan issues a publicly
available financial report located on their website at www.cpfiuoe.org. The City has 26 employees who are covered by this
pension plan. The plan provides benefits such as monthly retirement income, special and early retirement benefits, post -
retirement surviving spouse benefits, pre-retirement surviving spouse benefits, and disability benefits. The plan is a
supplemental pension fund authorized by Minnesota Statutes, 356.24, subdivision 1(9). The City's contributions to the
plan are pursuant to a collective bargaining agreement. Total employer contributions for the year ended
December 31, 2024 were $1,688.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Defined Benefit Pension Plans - Fire Relief Association
A.Plan Description
All members of the City’s fire department (the Department) are covered by a defined benefit plan administered by the
Sample Fire Department Relief Association (the Association). As of December 31, 2023, the plan covered 31 active
firefighters, 14 inactive members, five retired/disabled firefighters and eight surviving spouses/beneficiaries. The plan is a
single employer retirement plan and is established and administered in accordance with Minnesota statute, chapter 69.
The City levies property taxes at the direction of and for the benefit of the plan and passes through state aids allocated to
the plan, all in accordance with enabling state statutes. The minimum tax levy obligation is the financial contribution
requirement for the year less anticipated state aids.
B.Benefits Provided
Basic Service Pension for Retired Members
Upon retirement each individual will receive a lump sum distribution of $10,000 per year of service. This benefit level was
placed into effect on June 28, 2021. Prior to 1998, a monthly benefit level of $26.50 was available for retirees. The
monthly benefit is no longer an option for retiring members. Vested, terminated members, who are entitled to benefits but
are not yet receiving them, are bound by the provisions in effect at the time of termination from membership. A firefighter
who completes at least 20 years as an active member of the Department is entitled, after age 50, to a full service pension
upon retirement.
Basic Service Pension for Deferred Pensioner
The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed
fewer than 20 years of service. The reduced pension, available to members with 10 years of service, shall be equal to 60
percent of the pension as prescribed by the bylaws. This percentage increases 4 percent per year so that at 20 years of
service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the
age of 50 years and have completed at least 10 years of active membership are entitled to a reduced service pension not
to exceed the amount calculated by multiplying the member's service pension for the completed years of service times
the applicable non-forfeitable percentage of pension.
C.Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is
funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes
and voluntary City contributions (if applicable). The State of Minnesota contributed $205,560 in fire state aid to the plan
on behalf of the Department for the year ended December 31, 202 3, which was recorded as a revenue. Required employer
contributions are calculated annually based on statutory provisions. The City made no voluntary contributions to the plan.
The firefighter has no obligation to contribute to the plan.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
D. Pension Costs
At December 31, 2024, the City reported a net pension asset of $(443,775) for the Association. The net pension liability
(asset) was measured as of December 31, 2023. The total pension liability used to calculate the net pension liability
(asset) in accordance with GASB 68 was determined by specialist applying an actuarial formula to specific census data
certified by the Department. The following table presents the changes in net pension liability (asset) during the year:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Balances at January 1, 2024 2,721,158$ 3,164,933$ (443,775)$
Changes for the Year
Service cost 149,011 - 149,011
Interest 131,975 - 131,975
Changes in benefit terms 263,965 - 263,965
Changes in assumptions - - -
Differences between expected and actual experience - - -
Contributions - employer - -
Contributions - state and local - 223,177 (223,177)
Investment income (loss)- 276,399 (276,399)
Benefit payments (183,515) (183,515) -
Administrative expense - (24,825) 24,825
Net Changes 361,436 291,236 70,200
Balances at December 31, 2024 3,082,594$ 3,456,169$ (373,575)$
For the year ended December 31, 2024, the City recognized pension expense of $32,173.
At December 31, 2024, the City reported its deferred outflows of resources and deferred inflows of resources to the plan
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes in Actuarial Assumptions 24,554$ 1,544$
Liability Experience (Gains) and Losses 25,912 141,381
Net Difference Between Projected and Actual Earnings on Plan Investments 69,864 -
Changes in Proportion - -
Investment (Gains) and Losses - -
Contributions Paid to Plan Subsequent to the Measurement Date 223,177 -
Total 343,507$ 142,925$
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
Deferred outflows of resources totaling $223,177 related to the Plan resulting from the City’s contributions to pensions
subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year
ended December 31, 2024. Amounts reported as deferred outflows of resources related to the plan will be recognized in
pension expense as follows:
2025 39,802$
2026 68,297
2027 (56,724)
2028 (29,681)
2029 (18,149)
Thereafter (26,140)
E. Actuarial Assumptions
The total pension liability at December 31, 2024 was determined using the entry age normal actuarial cost method and
the following actuarial assumptions:
Expected Long-Term Investment Return 5.50%, net of investment expense
Investment Rate of Return 5.50%
Inflation Rate 2.50%
Mortality
Pre-retirement Pub-2010 Public Safety Employee mortality tables projected
with mortality improvement scale based on scale MP-2021.
Post-retirement Pub-2010 Healthy Retired Public Safety mortality tables projected
with mortality improvement scale based on scale MP-2021.
Male rates are adjusted by a factor of 0.98.
Post-disability Pub-2010 Public Safety Disabled Retiree mortality tables projected
with mortality improvement scale based on scale MP-2021.
Male rates are adjusted by a factor of 1.05.
Since the prior measurement date, the following assumptions changed:
• The expected investment return and discount rate decreased from 5.25 percent to 4.75 percent to reflect updated
capital market assumptions.
• The disability, mortality and withdrawal assumptions were updated from the rates used in the July 1, 2020
Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2022 Minnesota PERA
Police and Fire Plan actuarial valuation.
• The inflation assumption increased from 2.25 percent and 2.50 percent.
F. Discount Rate
The discount rate used to measure the total pension liability was 4.75 percent. The projection of cash flows used to
determine the discount rate assumed that City contributions will be made at the actual statutory contribution rate. Based
on those assumptions, the Association's fiduciary net position was projected to be available to make all projected future
benefit payments of the current plan members. Therefore, the long -term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
G.Asset Allocation
The long-term expected rate of return on pension plan investments was set based on the plan’s target investment
allocation along with long-term return expectations by asset class. All economic assumptions were based on input from
various published sources and projected future financial data available.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in
the following table:
Asset Class
Domestic Equity 45.0 %4.52 %
International Equity 15.0 5.08
Fixed Income 35.0 2.44
Real Estate and Alternatives - 3.73
Cash 5.0 0.99
Total 100.00 %
Long-term
Target Expected Real
Allocation Rate of Return
H.Pension Liability Sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in
the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a
discount rate one percent lower or one percent higher than the current discount rate:
1 Percent 1 Percent
Decrease (3.75%) Current (4.75%) Increase (5.75%)
Defined Benefit Plan (349,947)$ (443,775)$ (532,355)$
I.Pension Plan Fiduciary Net Position
The Association issues a financial report that includes financial statements and required supplementary information for
the Brooklyn Center Fire Department Relief Association. That report is available at the City of Brooklyn Center City offices.
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Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 18
Active Plan Members 145
Total Plan Members 163
B. Funding Policy
C. Actuarial Methods and Assumptions
Discount Rate 3.77%
Expected Long-Term Investment Return N/A
20-Year Municipal Bond Yield 3.77%
Inflation Rate 2.60%
Salary Increases N/A
Medical Trend Rate N/A
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 7: Postemployment Benefits Other Than Pensions
A. Plan Description
The City administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides
lifetime healthcare insurance for eligible retirees and their spouses through the City’s group health insurance plan, which
covers both active and retired members. Benefit provisions are established through negotiations between the City and
the union representing employees and are renegotiated each three-year bargaining period. The component unit is
included in the City’s plan. The Retiree Health Plan does not issue a publicly available financial report.
At December 31, 2024, the following employees were covered by the benefit terms:
Contribution requirements also are negotiated between the City and union representatives. The City does not contribute
to the cost of current-year premiums for eligible retired plan members and their spouses.
For the year ended December 31, 2024, the City's average contribution rate was 30.4 percent of covered-employee
payroll. For the fiscal year 2024, the City did not directly contribute to the plan. The General fund is typically used to
liquidate the governmental portion of the net OPEB obligation.
The City’s total OPEB liability of $4,013,370 was measured as of December 31, 2023, and the OPEB liability was
determined by an actuarial valuation as of December 31, 2023.
The total OPEB liability in the December 31, 2023 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
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D. Changes in the Total OPEB Liability
Total OPEB
Liability
Balances at December 31, 2023 2,668,769$
Changes for the Year
Service Costs 114,787
Interest Costs 108,000
Assumption Changes 141,643
Differences between expected and actual experience 1,213,970
Benefit Payment (233,799)
Net Changes 1,344,601
Balances at December 31, 2024 4,013,370$
Since the prior measurement date, the following assumptions changed:
Since the prior measurement date, the following plan provisions changed:
Since the prior measurement date, the following benefit terms changed:
• None
• The discount rate was changed from 4.05 percent to 3.77 percent.
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 7: Postemployment Benefits Other Than Pensions(Continued)
The discount rate used to measure the total OPEB liability was 3.77 percent. Assets were projected using expected
benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected
asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit
payments after the trust fund is exhausted are discounted at the 20-year municipal bond rate. The equivalent single rate
is the discount rate.
The mortality tables were updated from the RP-2014 Mortality Tables (Blue Collar for Public Safety, White Collar for
Others) with MP-2018 Generational Improvement Scale to the Pub-2010 Public Retirement Plans Headcount-Weighted
Mortality Tables (General, Safety) with MP-2020 Generational Improvement Scale.
Economic assumptions are based on input from a variety of published sources of historical and projected future financial
data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the
other economic assumptions.
• None
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
1 Percent Discount Rate 1 Percent
Decrease 2.77%Current 3.77%Increase 4.77%
4,479,201$ 4,013,370$ 3,620,055$
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
3,577,676$ 4,013,370$ 4,534,426$
F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 1,756,536$ -$
Changes in Actuarial Assumptions 350,209 766,724
Contributions Paid to OPEB Subsequent to the Measurement Date 74,566 -
Total 2,181,311$ 766,724$
184,738$
184,738
178,368
174,611
165,311
Thereafter 452,255
For the year ended December 31, 2024, the City Recognized OPEB expense of $150,425. At December 31, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
2029
2025
2027
The following presents the City’s net OPEB liability, as well as what the City’s net OPEB liability would be if it were
calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current
healthcare cost trend rate:
2028
6.75% Decreasing
to 6.45%
7.75% Decreasing
to 7.45%
8.75% Decreasing
to 8.45%
2026
Deferred outflows of resources totaling $74,566 related to pensions resulting from the City’s contributions to OPEB
subsequent to the measurement date will be recognized as a reduction of the OPEB liability as of December 31, 2025.
Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in pension
expense as follows:
Note 7: Postemployment Benefits Other Than Pensions (Continued)
E. Sensitivity of the Net OPEB Liability
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were
calculated using a discount rate one percentage point lower or one percentage point higher than the current discount
rate:
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Other Information
A.Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance
through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with
approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation
and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims
above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City’s coverage in any
of the past three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s
management is not aware of any incurred but not reported claims.
B.Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally
the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at
this time although the City expects such amounts, if any, to be immaterial.
C.Legal Debt Margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the
market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and therefore, excludes
debt financed partially or entirely by special assessments, enterprise fund revenues or tax increments. As of
December 31, 2024, the City is under the legal debt margin.
D.Tax Increment Districts
The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any
disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated
that they are not aware of any instances of noncompliance which would have a material effect on the financial
statements.
E.Arbitrage Rebate
The Tax Reform Act of 1986 requires governmental entities to pay to the federal government income earned on the
proceeds from the issuance of debt in excess of interest costs, pending the expenditures of the borrowed funds. This
rebate of interest income (known as arbitrage) applies to governmental debt issued after August 31, 1986. The City issued
greater than $5 million of bonds in subsequent years and thereafter is required to rebate excess investment income
relating to these issues to the federal government. The extent of the City’s liability for the arbitrage rebates on the
remaining bond issues is not determined at this time. However, in the opinion of management any such liability would be
immaterial.
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City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 9: Jointly Governed Organizations
The City has several agreements with other entities that provide reduced costs, better service, and additional benefits to
the participants. The programs in which the City participates are listed below and amounts recorded within the current
year’s financial statements are disclosed.
Local Government Information Systems Association (LOGIS)
This consortium of approximately 30 government entities provides computerized data processing and support services to
its members. LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is
fiscally independent of the City. The total amount recorded within the 2024 financial statements of the City is $823,198 for
general services and application upgrades provided. Costs were allocated to the various funds based on applications
and/or use of services. Complete financial statements for LOGIS may be obtained at the LOGIS offices located at 5750
Duluth Street, Golden Valley, Minnesota 55422.
LOGIS Insurance Group
This group provides cooperative purchasing of health and life insurance benefits for approximately 45 governmental
entities. The total of 2023 health and life insurance costs paid by the City was $1,872,634. Complete financial statements
may be obtained from Gallagher Benefit Services, Inc. located at 3600 American Blvd West, Bloomington, MN 55431.
Note 10: Adjustments to Beginning Balances and Changes in Accounting Principle
Change within Major and Nonmajor Fund Reporting
During fiscal year 2024, the Special Assessment Construction and Street Reconstruction capital project funds were
determined to be major and the Debt Service fund was determined to be nonmajor. The effects of the changes within
the financial reporting entity are shown in applicable financial statement.
Change in Accounting Principle
During fiscal year 2024, the City adopted the provisions of the Governmental Accounting Standard Board (GASB)
Statement No. 100, Accounting Changes and Error Corrections, and Statements No. 101, Compensated Absences, for the
year ended December 31, 2024. Adoption of the provisions of these statement results in significant change to the
classifications of the components of the financial statements. There were no adjustments or restatements of beginning
balances needed for the adoption of these statements.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Retirement Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2024 0.1259 %4,654,385$ 120,353$ 4,774,738$ 10,655,463$ 43.7 %86.7 %
6/30/2023 0.1231 6,883,614 189,767 7,073,381 10,176,093 67.6 83.1
6/30/2022 0.1250 9,900,041 290,319 10,190,360 7,042,154 140.6 76.7
6/30/2021 0.1206 5,150,160 157,297 5,307,457 8,685,747 59.3 87.0
6/30/2020 0.1240 7,434,367 229,207 7,663,574 8,843,395 84.1 79.0
6/30/2019 0.1189 6,573,715 204,324 6,778,039 8,411,938 78.1 80.2
6/30/2018 0.1194 6,623,822 217,244 6,841,066 7,892,915 83.9 79.5
6/30/2017 0.1201 7,667,105 96,388 7,763,493 7,735,587 99.1 75.9
6/30/2016 0.1172 9,516,060 124,251 9,640,311 7,269,667 130.9 68.9
6/30/2015 0.1243 6,441,872 - 6,441,872 7,303,595 88.2 78.2
Schedule of Employer’s PERA Contributions - General Employees Retirement Fund
Contributions in
Relation to the Contributions as
Statutorily Statutorily Contribution City's a Percentage of
Required Required Deficiency Covered Covered
Year Contribution Contribution (Excess)Payroll Payroll
Ending (a)(b)(a-b)(c)(b/c)
12/31/2024 833,711$ 833,711$ -$ 11,116,147$ 7.50 %
12/31/2023 758,282 758,282 - 10,110,427 7.50
12/31/2022 727,505 727,505 - 9,700,067 7.50
12/31/2021 673,181 673,181 - 8,977,525 7.50
12/31/2020 649,561 649,561 - 8,660,814 7.50
12/31/2019 651,633 651,633 - 8,688,397 7.50
12/31/2018 612,983 612,983 - 8,173,316 7.50
12/31/2017 572,442 572,442 - 7,634,297 7.50
12/31/2016 550,846 550,846 - 7,344,613 7.50
12/31/2015 564,168 564,168 - 7,522,240 7.50
City of Brooklyn Center, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2024
Net Position
Proportion of
Percentage of
as a PercentageCovered
City's
Proportionate
Share of the
Net Pension
Plan Fiduciary
City's
Liability as a
the Net Pension Payroll of the Total
Liability (a/c)Pension Liability
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Notes to the Required Supplementary Information - General Employee Retirement Fund
City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Changes in Actuarial Assumptions
2024 - The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience study
(dated June 29, 2023): Rates of merit and seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were adjusted as
follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early
retirement rates for Tier 1 and Tier 2 members. Minor increase in assumed withdrawals for males and females. Lower rates of disability.
Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. Minor
changes to form of payment assumptions for male and female retirees. Minor changes to assumptions made with respect to missing participant
data.
2023 - The investment return and single discount rates were changed from 6.5 percent to 7.0 percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The
mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that
average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The
changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were
changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous
rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience
study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and
employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled
annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality
table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age
difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100%
Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option
changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per
year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.
2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested
deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and
3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year
for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year
thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single
discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30,
2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and
2.50 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year
thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - General Employee Retirement Fund (Continued)
Changes in Plan Provisions
2024 - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in
assumptions.
2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period
of those hired after Juen 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase
delay for early retirements on or after January 1, 2024 was eliminated. A one-time non-compounding benefit increase of 2.5 percent minus the
actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after.
Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state’s
special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial
equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will
still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.0 percent per year with a
provision to increase to 2.5 percent upon attainment of 90.0 percent funding ratio to 50.0 percent of the Social Security Cost of Living
Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the
first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients,
or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar
years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total
pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions
were revised.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Employer’s Share of PERA Net Pension Liability - Public Employees Police and Fire Fund
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2024 0.3584 %4,715,655$ 179,759$ 4,895,414$ 4,963,447$ 95.0 %87.0 %
6/30/2023 0.3453 5,962,882 240,183 6,203,065 4,693,362 127.0 86.5
6/30/2022 0.3429 2,646,825 126,416 2,773,241 4,151,333 63.8 70.5
6/30/2021 0.4161 3,211,851 144,394 3,356,245 5,100,055 63.0 93.7
6/30/2020 0.4405 5,806,261 136,792 5,943,053 4,970,710 116.8 87.2
6/30/2019 0.4483 4,772,606 - 4,772,606 4,729,530 100.9 89.3
6/30/2018 0.4330 4,615,334 - 4,615,334 4,549,453 101.4 88.8
6/30/2017 0.4410 5,954,025 - 5,954,025 4,529,519 131.4 85.4
6/30/2016 0.4290 17,216,517 - 17,216,517 4,128,855 417.0 63.9
6/30/2015 0.4460 5,067,604 - 5,067,604 4,031,138 125.7 86.6
Schedule of Employer’s PERA Contributions - Public Employees Police and Fire Fund
Contributions in
Relation to the Contributions as
Statutorily Statutorily Contribution City's a Percentage of
Required Required Deficiency Covered Covered
Year Contribution Contribution (Excess)Payroll Payroll
Ending (a)(b)(a-b)(c)(b/c)
12/31/2024 883,853$ 883,853$ -$ 4,993,522$ 17.70 %
12/31/2023 869,104 869,104 - 4,910,192 17.70
12/31/2022 734,786 734,786 - 4,151,333 17.70
12/31/2021 832,803 832,803 - 4,705,104 17.70
12/31/2020 887,315 887,315 - 5,013,084 17.70
12/31/2019 818,676 818,676 - 4,829,945 16.95
12/31/2018 761,952 761,952 - 4,703,405 16.20
12/31/2017 720,865 720,865 - 4,449,784 16.20
12/31/2016 689,601 689,601 - 4,256,796 16.20
12/31/2015 687,935 687,935 - 4,246,511 16.20
Proportionate
City's
Share of the
Net Pension
Liability as a Plan Fiduciary
City's Percentage of Net Position
Liability (a/c)Pension Liability
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund
Changes in Actuarial Assumptions
2024 - There were no changes in actuarial assumptions since the previous valuation.
2023 - The investment return assumption was changed from 6.5 percent to 7.0 percent. The single discount rate changed from 5.4 percent to 7.0
percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate changed from 6.50
percent to 5.40 percent.
2021 - The investment return and single discount rates were changed from 7.5 percent to 6.5 percent, for financial reporting purposes. The
inflation assumption was changed from 2.5 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.0
percent. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety
Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was
changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010
Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020). Assumed rates of salary
increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more
unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to
service-based rates. The changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and
decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members
was changed from 60.0 percent to 70.0 percent. Minor changes to form of payment assumptions were applied.
2020 - The mortality projection scale was changed from MP-2018 to MP-2019.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2016 to MP-2017.
2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that
average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined
Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested
members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-
2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for
the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from
separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor
annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year
through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year
thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single
discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflation were decreased by
0.25 percent to 3.25 percent for payroll growth and 2.5 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year
thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund (Continued)
Changes in Plan Provisions
2024 - The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol
Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The
contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The additional $9.0 million contribution will
continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1,
2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets
basis for one year (or July 1, 2048 if earlier).
2023 - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. The vesting
requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with
50 percent vesting after five years increasing incrementally to 100 percent after 10 years. A one-time non-compounding benefit increase of 3.0
percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023 prior
to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. The total and permanent duty disability
was increased, effective July 1, 2023.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - There were no changes in plan provisions since the previous valuation.
2019 - There were no changes in plan provisions since the previous valuation.
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per
year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100 percent funding, or
July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019 and 11.8 percent
of pay, effective January 1, 2020. Employer contributions were changed from 16.2 percent to 16.95 percent of pay, effective January 1, 2019 and
17.7 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning
July 1, 2018. Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred
members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that
average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined
service annuity (CSA) load was 30.0 percent for vested and non-vested, deferred members. The CSA has been changed to 33.0 percent for vested
members and 2.0 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-
2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for
the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65.0 percent to 60.0 percent. Assumed age difference was changed from
separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor
annuities was increased. The assumed postretirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year
through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent per annum to 7.5 percent per annum.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5
percent, to a fixed rate of 2.5 percent.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
(Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report (Fire Relief Report
Date 2023) Date 2022) Date 2021) Date 2020) Date 2019) Date 2018) Date 2017) Date 2016) Date 2015) Date 2014)
Total Pension Liability
Service cost 149,011$ 137,340$ 114,281$ 112,974$ 99,907$ 107,405$ 98,240$ 120,802$ 88,266$ 85,904$
Interest 131,975 135,288 124,570 136,948 137,983 171,057 191,790 174,191 173,219 178,242
Changes in benefit terms 263,965 15,086 242,775 - 164,525 18,251 - 26,709 - -
Changes in assumptions - 34,989 - 5,863 - 52,746 44,974 (50,396) 358,422 -
Differences between expected and actual experience - 44,119 - (17,492) - (141,409) - (75,613) - -
Benefit payments (183,515) (170,479) (430,577) (520,165) (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Net Changes 361,436 196,343 51,049 (281,872) 52,193 (536,161) 203,396 59,525 560,891 (353,395)
Total Pension Liability - January 1 2,721,158 2,524,815 2,473,766 2,755,638 2,703,445 3,239,606 3,036,210 2,976,685 2,415,794 2,769,189
Total Pension Liability - December 31 (a)3,082,594$ 2,721,158$ 2,524,815$ 2,473,766$ 2,755,638$ 2,703,445$ 3,239,606$ 3,036,210$ 2,976,685$ 2,415,794$
Plan Fiduciary Net Position
Employer contributions -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Contributions - state and local 223,177 205,560 186,797 180,079 165,652 164,147 154,366 147,002 143,061 158,545
Investment income (loss)276,399 (438,162) 308,374 199,905 503,214 (236,910) 557,117 275,625 (181,185) 149,635
Benefit payments (183,515) (170,479) (430,577) (520,165) (350,222) (744,211) (131,608) (136,168) (59,016) (617,541)
Administrative expense (24,825) (18,497) (24,003) (17,060) (21,126) (15,708) (15,024) (9,495) (14,560) (10,080)
Net Changes 291,236 (421,578) 40,591 (157,241) 297,518 (832,682) 564,851 276,964 (111,700) (319,441)
Total Plan Fiduciary Net Position - January 1 3,164,933 3,586,511 3,545,920 3,703,161 3,405,643 4,238,325 3,673,474 3,396,510 3,508,210 3,827,651
Total Plan Fiduciary Net Position - December 31 (b)3,456,169$ 3,164,933$ 3,586,511$ 3,545,920$ 3,703,161$ 3,405,643$ 4,238,325$ 3,673,474$ 3,396,510$ 3,508,210$
Total Net Pension Liability (Asset) - December 31 (a-b)(373,575)$ (443,775)$ (1,061,696)$ (1,072,154)$ (947,523)$ (702,198)$ (998,719)$ (637,264)$ (419,825)$ (1,092,416)$
Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability (b/a)112.1%116.3%142.1%143.3%134.4%126.0%130.8%121.0%114.1%145.2%
Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
City's Net Pension Liability (Asset) as a Percentage of
Covered Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - Fire Relief Association
Changes in Actuarial Assumptions
2023 - The expected investment return and discount rate decreased from 5.25 percent to 4.75 percent to reflect updated
capital market assumptions. The disability, mortality and withdrawal assumptions were updated from the rates used in
the July 1, 2020 Minnesota PERA Police and Fire Plan actuarial valuation to the rates used in the July 1, 2022 Minnesota
PERA Police and Fire Plan actuarial valuation. The inflation assumption increased from 2.25 percent and 2.50 percent.
2022 - There were no changes in actuarial assumptions since the previous valuation.
2021 - The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2018 Minnesota PERA
Police and Fire Plan actuarial valuation to the rates used in the July 1, 2020 Minnesota PERA Police and Fire Plan actuarial
valuation. The inflation assumption was changed from 2.50 percent to 2.25 percent based on an updated historical
analysis of inflation rates and forward-looking market expectations.
2020 - There were no changes in actuarial assumptions since the previous valuation.
2019 - The mortality and withdrawal assumptions were updated from the rates used in the July 1, 2016 Minnesota PERA
Police and Fire Plan actuarial valuation to the rates used in the July 1, 2018 Minnesota PERA Police and Fire Plan actuarial
valuation. The inflation assumption was changed from 2.75 percent to 2.50 percent.
2018 - The discount rate was changed from 6.25 percent to 5.75 percent to reflect updated capital market assumptions.
2017 - The discount rate was changed from 5.75 percent to 6.25 percent to reflect updated capital market assumptions.
2016 - The discount rate was changed from 7.00 percent to 5.75 percent to reflect updated capital market assumptions.
Changes in Benefit Terms
2023 - There were no changes in benefit terms since the previous valuation.
2022 - The lump sum distribution upon retirement per year of service was changed from $8,500 to $10,000.
2021 - There were no changes in benefit terms since the previous valuation.
2020 - The lump sum distribution upon retirement per year of service was changed from $7,700 to $8,500.
2019 - The lump sum distribution upon retirement per year of service was changed from $7,600 to $7,700.
2018 - There were no changes in benefit terms since the previous valuation.
2017 - The lump sum distribution upon retirement per year of service was changed from $7,500 to $7,600.
2016 - There were no changes in benefit terms since the previous valuation.
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City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Employer’s Fire Relief Association Contributions
Actuarial Actual Contribution
Determined Contributions Excess
Year Contribution Paid (Deficiency)
Ending (a)(b)(a-b)
12/31/24 138,138$ -$ (138,138)$
12/31/23 48,372 223,177 174,805
12/31/22 48,372 205,560 157,188
12/31/21 67,773 187,797 120,024
12/31/20 67,773 170,652 102,879
12/31/19 85,089 159,147 74,058
12/31/18 85,089 154,366 69,277
12/31/17 71,203 147,002 75,799
12/31/16 71,203 143,061 71,858
12/31/15 101,453 158,545 57,092
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Schedule of Changes in the City's OPEB Liability and Related Ratios
2024 2023 2022 2021 2020
Total OPEB Liability
Service Costs 114,787$ 149,390$ 168,883$ 144,086$ 114,736$
Interest Costs 108,000 66,441 58,795 69,311 85,818
Assumption Changes 141,643 22,792 861,034 16,844 45,132
Differences between expected and actual experience 1,213,970 (546,218) (442,198) 130,147 277,698
Benefit Payment (233,799) (199,109) (150,986) (131,937) (110,790)
Net Change in Total OPEB Liability 1,344,601 (506,704) 495,528 228,451 412,594
Total OPEB Liability - Beginning 2,668,769 3,175,473 2,679,945 2,451,494 2,038,900
Total OPEB Liability - Ending 4,013,370$ 2,668,769$ 3,175,473$ 2,679,945$ 2,451,494$
Covered - Employee Payroll 13,200,000$ 12,400,000$ 12,200,000$ 12,190,688$ 12,599,989$
City's total OPEB liability as a percentage of
covered employee payroll 30.40 %21.52 %26.03 %21.98 %19.46 %
Changes in assumptions:
Changes in Plan Provisions:
Changes in benefits:
2024 - Medical trend was updated based on recently published trend model. Discount rate was changed from 4.05 percent to 3.77 percent. Medical per
capital claims tables were updated based on recent experience and demographics. Future retiree medical plan blending was updated based on analysis
of medical plan election rates. Future retirement participation rates for future retirees were updated from 50% to 40% based on an analysis of past plan
experience. Future retiree spouse participation rates were updated from 40% to 30% based on analysis of past plan experience.
2023 - The discount rate was changed from 2.12 percent to 4.05 percent.
2022 - The medical trend rate was updated based on recently published trend model and trend surveys to better reflect future anticipated experience.
Medical per capita claims tables were updated based on recent experience and demographics. The discount rate was updated from 2.12 percent to 2.06
percent based on recent municipal bond index rates. Withdrawal, retirement, mortality, disability and salary scale assumptions were updated to those
included in the recently published PERA actuarial valuations. Future retiree participation rates were updated from 65% to 50% based on analysis of past
plan experience. Future retiree spouse participation rates were updated from 40% for PERA Coordinated and 60% for PERA Police and Fire to 40% based
on analysis of past plan experience. Future retiree medical plan blending was updated based on an analysis of medical plan election rates as of the
valuation date.
2021 - The discount rate was changed from 2.74 percent to 2.12 percent.
2020 - The discount rate was changed from 4.09 percent to 2.74 percent. The healthcare trend rates, mortality tables, and payroll growth rates were
• None
• None
City of Brooklyn Center, Minnesota
Required Supplmentary Information (Continued)
For the Year Ended Decemeber 31, 2024
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BLANK INTENTIONALLY
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COMBINING AND INDIVIUDAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
103
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Nonmajor Nonmajor (Formerly Major)
Special Capital Debt
Revenue Projects Service Total
Assets
Cash and investments 7,448,542$ 6,323,325$ 5,009,960$ 18,781,827$
Receivables
Interest 10,902 - - 10,902
Current taxes 6,321 - - 6,321
Delinquent taxes 5,994 - - 5,994
Accounts, net of allowances 7 - - 7
Notes 85,133 - - 85,133
Leases 433,927 - - 433,927
Special assessments - - 2,325,082 2,325,082
Intergovernmental 62,492 515,920 - 578,412
Due from other funds 3,418 - - 3,418
Inventories 3,694 - - 3,694
Prepaid items 75,799 - - 75,799
Advances to other funds - - - -
Assets held for resale 434,978 - - 434,978
Total Assets 8,571,207$ 6,839,245$ 7,335,042$ 22,745,494$
Liabilities
Accounts payable 155,811$ 7,440$ -$ 163,251$
Contracts payable - 56,117 - 56,117
Due to other funds 3,418 - - 3,418
Accrued salaries and wages 3,323 - - 3,323
Deposits payable 16,133 - - 16,133
Unearned revenue 1,180,833 - - 1,180,833
Total Liabilities 1,359,518 63,557 - 1,423,075
Deferred Inflows of Resources
Unavailable revenue
Taxes 5,994 - - 5,994
Special assessments - 515,920 2,319,133 2,835,053
Deferred lease resources 394,150 - - 394,150
Total Deferred Inflows of Resources 400,144 515,920 2,319,133 3,235,197
Fund Balances
Nonspendable 3,694 - - 3,694
Restricted 6,870,215 4,985,547 5,015,909 16,871,671
Committed 180,374 1,903,408 - 2,083,782
Unassigned (242,738) (629,187) - (871,925)
Total Fund Balances 6,811,545 6,259,768 5,015,909 18,087,222
Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,571,207$ 6,839,245$ 7,335,042$ 22,745,494$
City of Brooklyn Center, Minnesota
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2024
104
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Page 107 of 213
(Formerly Major)
Special Capital Debt
Revenue Projects Service Total
Revenues
Taxes
Property taxes 586,081$ -$ 1,818,856$ 2,404,937$
Tax increments 1,011,749 - - 1,011,749
Special assessments - - 759,349 759,349
Intergovernmental 1,408,207 2,971,179 - 4,379,386
Charges for services 976,056 - - 976,056
Investment earnings (loss)303,000 258,893 145,693 707,586
Miscellaneous 112,419 - - 112,419
Total Revenues 4,397,512 3,230,072 2,723,898 10,351,482
Expenditures
Current
General government 241,630 107,326 - 348,956
Public safety 561,418 - - 561,418
Public works - 306,002 - 306,002
Parks and recreation 1,408,788 - - 1,408,788
Economic development 1,764,760 - - 1,764,760
Capital outlay
Public works - 2,124,813 - 2,124,813
Debt service
Principal - - 2,623,796 2,623,796
Interest and other - - 543,761 543,761
Total Expenditures 3,976,596 2,538,141 3,167,557 9,682,294
Excess (Deficiency) of Revenues Over
(Under) Expenditures 420,916 691,931 (443,659) 669,188
Other Financing Sources (Uses)
Transfers in 739,851 100,000 374,383 1,214,234
Other Debt- Principal (21,069) - - (21,069)
Transfers out (1,171,526) - - (1,171,526)
Total Other Financing Sources (Uses)(452,744) 100,000 374,383 21,639
Net Change in Fund Balances (31,828) 791,931 (69,276) 690,827
Fund Balance, January 1, as previously reported 6,843,373 10,951,951 - 17,795,324
Change to the financial reporting entity (Note 10)
Change from nonmajor to major fund - (5,484,114) - (5,484,114)
Change from major to nonmajor fund - - 5,085,185 5,085,185
Fund Balances, January 1, as adjusted or restated 6,843,373 5,467,837 5,085,185 17,396,395
Fund Balances, December 31 6,811,545$ 6,259,768$ 5,015,909$ 18,087,222$
City of Brooklyn Center, Minnesota
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended December 31, 2024
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202 203 204 205 206 207 613 277
Housing and Economic Community Local Tax
Redevelopment Development Development Police Revolving Affordable Centerbrook Increment
Authority Authority Block Grant Forfeitures Loan Housing Golf Course District No. 2
Assets
Cash and investments 8,113$ 1,578,409$ 72,376$ 120,459$ 60,585$ 191,777$ (234,075)$ 1,328,065$
Receivables
Interest - 10,902 - - - - - -
Current taxes - -- - - - - -
Delinquent taxes - -- - - - - -
Accounts, net of allowances - -- - - - 7 -
Notes - -- - 85,133 - - -
Leases - 433,927 - - - - - -
Intergovernmental - -- - - - - -
Due from other funds - 3,418 - - - - - -
Inventories - -- - - - 3,694 -
Prepaid items - -- - - - - -
Assets held for resale - 12,000 - - - - - 422,978
Total Assets 8,113$ 2,038,656$ 72,376$ 120,459$ 145,718$ 191,777$ (230,374)$ 1,751,043$
Liabilities
Accounts payable -$ 682$ -$ 31,707$ -$ -$ 5,099$ -$
Due to other funds - - - - - - - -
Accrued wages payable - 3,170 - - - - 153 -
Deposits payable - -- 16,133 - - - -
Unearned revenue - -- - - - - -
Total Liabilities - 3,852 - 47,840 - - 5,252 -
Deferred Inflows of Resources
Unavailable revenue
Taxes - - - - - - - -
Deferred lease resources - 394,150 - - - - - -
Total Deferred Inflows of Resources - 394,150 - - - - - -
Fund Balances
Nonspendable
Inventories - - - - - - 3,694 -
Restricted
Tax increment financing - - - - - 191,777 - 1,751,043
Economic development 8,113 1,640,654 72,376 - 145,718 - -
Law enforcement enhancements - - - 72,619 - - - -
Opioids - - - - - - - -
Community prevention, health and safety - - - - - - - -
Committed
Cable communications - - - - - - - -
Unassigned - - - - - - (239,320) -
Total Fund Balances 8,113 1,640,654 72,376 72,619 145,718 191,777 (235,626) 1,751,043
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 8,113$ 2,038,656$ 72,376$ 120,459$ 145,718$ 191,777$ (230,374)$ 1,751,043$
City of Brooklyn Center, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2024
106
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Page 109 of 213
280 281 282 283 284 285 286 287 292
Tax Tax Tax Tax Tax Tax City Opioid American
Increment Increment Increment Increment Increment Increment Initiative Settlement Rescue
District No. 5 District No. 6 District No. 7 District No. 8 District No. 9 District No. 10 Grants Funds Plan Act Total
660,815$ 43,718$ 562,877$ 172,653$ 22,983$ -$ 1,603,069$ 128,639$ 1,128,079$ 7,448,542$
- - - - - - - - - 10,902
6,321 - - - - - - - - 6,321
- - 5,994 - - - - - - 5,994
- - - - - - - - - 7
- - - - - - - - - 85,133
- - - - - - - - - 433,927
- - - - - - 62,492 - - 62,492
- - - - - - - - - 3,418
- - - - - - - - - 3,694
- - - - - - - - 75,799 75,799
- - - - - - - - - 434,978
667,136$ 43,718$ 568,871$ 172,653$ 22,983$ -$ 1,665,561$ 128,639$ 1,203,878$ 8,571,207$
-$ -$ 179$ -$ -$ -$ 85,419$ 9,680$ 23,045$ 155,811$
- - - - - 3,418 - - - 3,418
- - - - - -- - - 3,323
- - - - - -- - - 16,133
- - - - - -- - 1,180,833 1,180,833
- - 179 - - 3,418 85,419 9,680 1,203,878 1,359,518
- - 5,994 - - - - - - 5,994
- - - - - - - - - 394,150
- - 5,994 - - - - - - 400,144
- - - - - - - - - 3,694
667,136 43,718 562,698 172,653 22,983 - - - - 3,412,008
- - - - - - - - - 1,866,861
- - - - - - - - - 72,619
- - - - - - - 118,959 - 118,959
- - - - - - 1,399,768 - - 1,399,768
- - - - - - 180,374 - - 180,374
- - - - - (3,418) - - - (242,738)
667,136 43,718 562,698 172,653 22,983 (3,418) 1,580,142 118,959 - 6,811,545
667,136$ 43,718$ 568,871$ 172,653$ 22,983$ -$ 1,665,561$ 128,639$ 1,203,878$ 8,571,207$
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202 203 204 205 206 207 613 277
Housing and Economic Community Local Tax
Redevelopment Development Development Police Revolving Affordable Centerbrook Increment
Authority Authority Block Grant Forfeitures Loan Housing Golf Course District No. 2
Revenues
Taxes
Property taxes 586,081$ -$ -$ -$ -$ -$ -$ -$
Tax increments - - - - - - - -
Intergovernmental - 211,878 - - - 188,983 - -
Charges for services - 630,263 - - - - 316,382 -
Investment earnings (loss)- 58,464 - 2,918 1,976 2,794 - 40,454
Miscellaneous - -- -1,337 - - -
Total Revenues 586,081 900,605 - 2,918 3,313 191,777 316,382 40,454
Expenditures
Current
General government - - - - - - - -
Public safety - - - 35,071 - - - -
Parks and recreation - - - - - - 454,421 -
Economic development - 1,374,220 - - - - - 1,274
Total Expenditures - 1,374,220 - 35,071 - - 454,421 1,274
Excess (Deficiency) of Revenues
Over (Under) Expenditures 586,081 (473,615) - (32,153) 3,313 191,777 (138,039) 39,180
Other Financing Sources (Uses)
Transfers in - 579,580 - - - - 160,271 -
Other Debt- Principal - -- - - - - -
Transfers out (579,580) - - - - - - -
Total Other Financing Sources (Uses)(579,580) 579,580 - - - - 160,271 -
Net Change in Fund Balances 6,501 105,965 - (32,153) 3,313 191,777 22,232 39,180
Fund Balances, January 1 1,612 1,534,689 72,376 104,772 142,405 - (257,858) 1,711,863
Fund Balances, December 31 8,113$ 1,640,654$ 72,376$ 72,619$ 145,718$ 191,777$ (235,626)$ 1,751,043$
City of Brooklyn Center, Minnesota
Nonmajor Special Revenue Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
(Continued on the Following Pages)
For the Year Ended December 31, 2024
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280 281 282 283 284 285 286 287 292
Tax Tax Tax Tax Tax Tax City Opioid American
Increment Increment Increment Increment Increment Increment Initiative Settlement Rescue
District No. 5 District No. 6 District No. 7 District No. 8 District No. 9 District No. 10 Grants Funds Plan Act Total
-$ -$ -$ -$ -$ -$ -$ -$ -$ 586,081$
440,688 142,621 96,082 285,539 46,819 - - - - 1,011,749
- - - - - - 146,030 - 861,316 1,408,207
- - - - - - 29,411 - -976,056
49,434 928 19,039 4,283 249 - 75,525 1,694 45,242 303,000
- - - - 347 - 25,839 84,896 - 112,419
490,122 143,549 115,121 289,822 47,415 - 276,805 86,590 906,558 4,397,512
- - - - - - 241,630 - - 241,630
- - - - - - 481,027 45,320 - 561,418
- - - - - - 141,380 - 812,987 1,408,788
1,496 136,068 3,740 245,703 1,274 985 - - - 1,764,760
1,496 136,068 3,740 245,703 1,274 985 864,037 45,320 812,987 3,976,596
488,626 7,481 111,381 44,119 46,141 (985) (587,232) 41,270 93,571 420,916
- - - - - - - - - 739,851
- - - - (21,069) - - - - (21,069)
(374,383) - - - - - (123,992) - (93,571) (1,171,526)
(374,383) - - - (21,069) - (123,992) - (93,571) (452,744)
114,243 7,481 111,381 44,119 25,072 (985) (711,224) 41,270 - (31,828)
552,893 36,237 451,317 128,534 (2,089) (2,433) 2,291,366 77,689 - 6,843,373
667,136$ 43,718$ 562,698$ 172,653$ 22,983$ (3,418)$ 1,580,142$ 118,959$ -$ 6,811,545$
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City of Brooklyn Center, Minnesota
Housing and Redevelopment Authority
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Taxes
Property taxes 586,081$ 586,081$ -$ 508,233$
Other Financing Sources (Uses)
Tranfers out 586,081 579,580 (6,501) 508,959
Net Change in Fund Balances - 6,501 6,501 (726)
Fund Balances, January 1 1,612 1,612 - 2,338
Fund Balances, December 31 1,612$ 8,113$ 6,501$ 1,612$
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City of Brooklyn Center, Minnesota
Economic Development Authority
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Intergovernmental -$ 211,878$ 211,878$ -$
Charges for services - 630,263 630,263 -
Investment earnings (loss)16,806 58,464 41,658 62,882
Total Revenues 16,806 900,605 883,799 62,882
Expenditures
Current
Economic development
Personal services 342,145 393,246 (51,101) 231,972
Other services and charges 260,521 980,974 (720,453) 387,289
Total Expenditures 602,666 1,374,220 (771,554) 619,261
Excess (Deficiency) of Revenues
Over (Under) Expenditures (585,860) (473,615) 112,245 (556,379)
Other Financing Sources (Uses)
Transfer in 586,081 579,580 6,501 508,959
Net Change in Fund Balances 221 105,965 118,746 (47,420)
Fund Balances, January 1 1,534,689 1,534,689 - 1,682,109
Fund Balances, December 31 1,534,910$ 1,640,654$ 118,746$ 1,634,689$
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City of Brooklyn Center, Minnesota
Centerbrook Golf Course
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Charges for services 297,000$ 316,382$ 19,382$ 315,465$
Miscellaneous - - - 1,670
Total Revenues 297,000 316,382 19,382 317,135
Expenditures
Current
Parks and recreation
Personal services 236,849 244,371 (7,522) 216,659
Supplies 36,386 31,751 4,635 30,660
Other services and charges 199,691 178,299 21,392 183,529
Total Expenditures 472,926 454,421 18,505 430,848
Excess (Deficiency) of Revenues
Over (Under) Expenditures (175,926) (138,039) 877 (113,713)
Other Financing Sources (Uses)
Transfers in 80,000 160,271 (80,271) 80,000
Net Change in Fund Balances (95,926) 22,232 (79,394) (33,713)
Fund Balances, January 1 (257,858) (257,858) - (224,145)
Fund Balances, December 31 (353,784)$ (235,626)$ (79,394)$ (257,858)$
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City of Brooklyn Center, Minnesota
Tax Increment District No. 5
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Tax increments 498,468$ 440,688$ (57,780)$ 498,472$
Investment earnings (loss)5,869 49,434 43,565 39,127
Total Revenues 504,337 490,122 (14,215) 537,599
Expenditures
Current
Economic development
Other services and charges 30,000 1,496 28,504 5,759
Excess (Deficiency) of Revenues
Over (Under) Expenditures 474,337 488,626 14,289 531,840
Other Financing Sources (Uses)
Transfers out (373,525) (374,383) (858) (358,333)
Net Change in Fund Balances 100,812 114,243 13,431 173,507
Fund Balances, January 1 552,893 552,893 - 379,386
Fund Balances, December 31 653,705$ 667,136$ 13,431$ 552,893$
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City of Brooklyn Center, Minnesota
Tax Increment District No. 6
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Tax increments 133,878$ 142,621$ 8,743$ 133,879$
Investment earnings (loss)- 928 928 306
Total Revenues 133,878 143,549 9,671 134,185
Expenditures
Current
Economic development
Other services and charges 134,115 136,068 (1,953) 152,910
Net Change in Fund Balances (237) 7,481 7,718 (18,725)
Fund Balances, January 1 36,237 36,237 - 54,962
Fund Balances, December 31 36,000$ 43,718$ 7,718$ 36,237$
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City of Brooklyn Center, Minnesota
Tax Increment District No. 7
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024 2023
Final Actual Variance with Actual
Budget Amounts Final Budget Amounts
Revenues
Tax increments 170,135$ 96,082$ (74,053)$ 143,246$
Investment earnings (loss)2,800 19,039 16,239 16,860
Total Revenues 172,935 115,121 (57,814) 160,106
Expenditures
Current
Economic development
Other services and charges 45,791 3,740 42,051 13,285
Net Change in Fund Balances 127,144 111,381 (15,763) 146,821
Fund Balances, January 1 451,317 451,317 - 304,496
Fund Balances, December 31 578,461$ 562,698$ (15,763)$ 451,317$
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401 402 406 410
Municipal
State Aid Capital
Capital for Reserve
Improvements Construction Emergency Technology Total
Assets
Cash and investments 1,526,404$ 4,992,987$ (629,187)$ 433,121$ 6,323,325$
Receivables
Intergovernmental - 515,920 - - 515,920
Total Assets 1,526,404$ 5,508,907$ (629,187)$ 433,121$ 6,839,245$
Liabilities
Accounts payable -$ 7,440$ -$ -$ 7,440$
Contracts payable 56,117 - - - 56,117
Total Liabilities 56,117 7,440 - - 63,557
Deferred Inflows of Resources
Unavailable revenue
Intergovernmental - 515,920 - - 515,920
Fund Balances
Restricted
Municipal street projects - 4,985,547 - - 4,985,547
Committed
Capital projects 1,470,287 - - - 1,470,287
Technology improvements - - - 433,121 433,121
Unassigned - - (629,187) - (629,187)
Total Fund Balances 1,470,287 4,985,547 (629,187) 433,121 6,259,768
Total Liabilities, Deferred Inflows of Resources 1,526,404$ 5,508,907$ (629,187)$ 433,121$ 6,839,245$
and Fund Balances
City of Brooklyn Center, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2024
116
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Page 119 of 213
401 402 406 407 409 410
(Formerly (Formerly
Municipal Nonmajor)Nonmajor)
State Aid Capital Special
Capital for Reserve Assessment Street
Improvements Construction Emergency Construction Reconstruction Technology Total
Revenues
Intergovernmental 1,810,548$ 1,160,631$ -$ -$ -$ -$ 2,971,179$
Investment earnings 56,133 188,925 - - - 13,835 258,893
Total Revenues 1,866,681 1,349,556 - - - 13,835 3,230,072
Expenditures
Current
General government - - 85,224 - - 22,102 107,326
Public works - 306,002 - - - - 306,002
Capital outlay
Public works 2,124,813 - - - - - 2,124,813
Total Expenditures 2,124,813 306,002 85,224 - - 22,102 2,538,141
Excess (Deficiency) of Revenues
Over (Under) Expenditures (258,132) 1,043,554 (85,224) - - (8,267) 691,931
Other Financing Sources (Uses)
Transfers in - - - - - 100,000 100,000
Net Change in Fund Balances (258,132) 1,043,554 (85,224) - - 91,733 791,931
Fund Balances, January 1, as previously presented 1,728,419 3,941,993 (543,963) (798,565) 6,282,679 341,388 10,951,951
Change to the financial reporting entity (Note 10)
Change from nonmajor to major - - - 798,565 (6,282,679) - (5,484,114)
Fund Balances, January 1, as adjusted or restated 1,728,419 3,941,993 (543,963) - - 341,388 5,467,837
Fund Balances, December 31 1,470,287$ 4,985,547$ (629,187)$ -$ -$ 433,121$ 6,259,768$
City of Brooklyn Center, Minnesota
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended December 31, 2024
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BLANK INTENTIONALLY
118
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General Fund
Comparative Balance Sheets
December 31, 2024 and 2023
2024 2023
Assets
Cash and temporary investments 16,008,886$ 14,090,769$
Receivables
Interest 1,905 1,523
Current taxes 152,434 67,247
Delinquent taxes - 69,142
Accounts, net of allowances 254,791 235,254
Leases 11,858 23,455
Special assessments 372,557 232,681
Intergovernmental 15,526 10,445
Due from other funds 383,008 671,122
Inventories 183,346 68,944
Prepaid items 6,753 119,484
Total Assets 17,391,064$ 15,590,066$
Liabilities
Accounts payable 447,819$ 270,182$
Due to other governments 68,024 130,352
Accrued wages payable 1,015,921 692,922
Deposits payable 742,940 579,616
Unearned revenue 33 -
Total Liabilities 2,274,737 1,673,072
Deferred Inflows of Resources
Unavailable revenue
Property taxes - 69,142
Special assessments 358,880 229,046
Deferred lease resources 11,493 22,987
Total Deferred Inflows of Resources 370,373 321,175
Fund Balances
Nonspendable 190,099 188,428
Unassigned 14,555,855 13,407,391
Total Fund Balances 14,745,954 13,595,819
Total Liabilities, Deferred Inflow of
Resources and Fund Balances 17,391,064$ 15,590,066$
City of Brooklyn Center, Minnesota
119
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City of Brooklyn Center, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued on Following Pages)
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes
Property taxes 22,497,464$ 22,497,464$ 22,442,630$ (54,834)$ 20,938,324$
Penalties and interest 12,000 12,000 - (12,000) 50,716
Lodging tax 900,000 900,000 887,205 (12,795) 898,037
Total taxes 23,409,464 23,409,464 23,329,835 (79,629) 21,887,077
Special assessments 40,000 40,000 66,982 26,982 40,774
Licenses and permits
Liquor and beer licenses 30,200 30,200 56,579 26,379 46,805
Building permits 500,000 500,000 281,624 (218,376) 414,941
Mechanical permits 45,000 45,000 84,275 39,275 134,493
Sewer and water permits 3,000 3,000 2,680 (320) 1,990
Plumbing permits 65,000 65,000 76,165 11,165 64,253
Garbage licenses 2,375 2,375 5,750 3,375 2,225
Mechanical licenses 10,000 10,000 8,745 (1,255) 9,730
Service station licenses 2,190 2,190 3,185 995 1,330
Vehicle dealer licenses 1,500 1,500 1,500 - 1,500
Cigarette licenses 3,240 3,240 6,600 3,360 2,325
Sign permits 2,000 2,000 2,230 230 2,101
Rental dwelling licenses 200,000 200,000 292,078 92,078 301,938
Amusement licenses 50 50 105 55 15
Electrical permits 50,000 50,000 70,480 20,480 85,652
ROW permits 10,000 10,000 15,275 5,275 7,550
Miscellaneous 5,500 5,500 5,995 495 4,135
Total licenses and permits 930,055 930,055 913,266 (16,789) 1,080,983
Intergovernmental
State
Local government aid 1,513,990 1,513,990 1,513,990 - 1,250,185
Police pension aid 440,000 440,000 476,097 36,097 366,611
PERA aid - - - - -
Fireperson pension aid 208,000 208,000 245,067 37,067 223,177
Police training 48,000 48,000 36,491 (11,509) -
Other 392,085 392,085 29,400 (362,685) 130,253
Local
Miscellaneous 50,000 50,000 55,068 5,068 3,891
Total intergovernmental 2,652,075 2,652,075 2,356,113 (295,962) 1,974,117
Charges for services
General government 82,200 82,200 153,465 71,265 155,645
Public safety 10,500 10,500 23,439 12,939 22,572
Public works 500 500 4,161 3,661 4,500
Community development 10,000 10,000 18,200 8,200 24,038
Recreation 130,500 130,500 172,322 41,822 153,002
Community center 260,000 260,000 329,326 69,326 296,338
Total charges for services 493,700 493,700 700,913 207,213 656,095
Fines and forfeits 171,000 171,000 361,302 190,302 333,467
Investment earnings (loss)129,825 129,825 488,405 358,580 510,641
Miscellaneous
Other 180,500 180,500 284,538 104,038 304,285
Total miscellaneous 180,500 180,500 284,538 104,038 304,285
Total Revenues 28,006,619 28,006,619 28,501,354 494,735 26,787,439
Budgeted Amounts
2024
120
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City of Brooklyn Center, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures
Current
General government
Mayor and Council
Personal services 60,306$ 60,306$ 59,094$ 1,212$ 58,323$
Supplies - - 4,898 (4,898) 1,914
Other services and charges 121,473 121,473 125,846 (4,373) 128,042
Total Mayor and Council 181,779 181,779 189,838 (8,059) 188,279
Administrative (Manager, Clerk, HR) offices
Personal services 1,117,072 1,117,072 1,021,972 95,100 873,699
Supplies 14,925 14,925 16,806 (1,881) 21,958
Other services and charges 188,164 188,164 205,909 (17,745) 219,576
Total administrative (Manager, Clerk, HR) offices 1,320,161 1,320,161 1,244,687 75,474 1,115,233
Elections and voter registration
Personal services 187,940 187,940 210,555 (22,615) 75,950
Supplies 10,000 10,000 5,043 4,957 375
Other services and charges 38,400 38,400 11,793 26,607 12,381
Total elections and voter registration 236,340 236,340 227,391 8,949 88,706
Finance
Personal services 746,557 746,557 666,335 80,222 576,039
Supplies 18,000 18,000 12,222 5,778 4,726
Other services and charges 69,745 69,745 121,316 (51,571) 93,621
Total finance 834,302 834,302 799,873 34,429 674,386
Assessing
Other services and charges 270,000 270,000 125,455 144,545 268,916
Legal
Other services and charges 470,000 470,000 541,795 (71,795) 604,933
Communications and engagements
Personal services 342,611 342,611 365,007 (22,396) 246,665
Supplies - - - - -
Other services and charges 282,201 282,201 159,382 122,819 170,437
Total communications and engagements 624,812 624,812 524,389 100,423 417,102
Government buildings
Personal services 487,313 487,313 399,259 88,054 438,337
Supplies 86,750 86,750 103,236 (16,486) 82,600
Other services and charges 636,679 636,679 700,689 (64,010) 645,273
Total government buildings 1,210,742 1,210,742 1,203,184 7,558 1,166,210
Information technology
Personal services 374,544 374,544 360,927 13,617 323,302
Supplies 16,100 16,100 13,825 2,275 15,872
Other services and charges 463,425 463,425 424,856 38,569 365,057
Total information technology 854,069 854,069 799,608 54,461 704,231
Total general government 6,002,205 6,002,205 5,656,220 345,985 5,227,996
2024
Budgeted Amounts
121
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City of Brooklyn Center, Minnesota
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures (Continued)
Current (Continued)
Public safety
Community prevention, health and safety
Personal services 162,894$ 162,894$ 160,436$ 2,458$ 183,910$
Supplies 7,705 7,705 4,624 3,081 2,280
Other services and charges 135,830 135,830 278,346 (142,516) 107,219
Total community prevention, health and safety 306,429 306,429 443,406 (136,977) 293,409
Police protection
Personal services 9,119,764 9,119,764 8,178,985 940,779 7,995,503
Supplies 292,225 292,225 263,976 28,249 333,011
Other services and charges 1,785,642 1,785,642 2,000,334 (214,692) 1,920,354
Total police protection 11,197,631 11,197,631 10,443,295 754,336 10,248,868
Fire protection
Personal services 1,415,037 1,415,037 1,400,808 14,229 1,202,377
Supplies 84,200 84,200 74,727 9,473 106,643
Other services and charges 868,119 868,119 792,827 75,292 784,093
Total fire protection 2,367,356 2,367,356 2,268,362 98,994 2,093,113
Protective inspection
Personal services 265,927 265,927 270,446 (4,519) 243,212
Supplies - - - - 125
Other services and charges 14,027 14,027 7,753 6,274 40,065
Total protective inspection 279,954 279,954 278,199 1,755 283,402
Building and community standards
Personal services 1,108,840 1,108,840 1,102,037 6,803 1,008,988
Supplies 7,775 7,775 11,436 (3,661) 6,002
Other services and charges 147,681 147,681 278,684 (131,003) 234,145
Total building and community standards 1,264,296 1,264,296 1,392,157 (127,861) 1,249,135
Emergency preparedness
Supplies 19,000 19,000 2,355 16,645 11,420
Other services and charges 10,400 10,400 8,043 2,357 9,958
Total emergency preparedness 29,400 29,400 10,398 19,002 21,378
Total public safety 15,445,066 15,445,066 14,835,817 609,249 14,189,305
Public works
Engineering department
Personal services 1,097,345 1,097,345 975,429 121,916 844,988
Supplies 8,622 8,622 6,935 1,687 9,659
Other services and charges 87,607 87,607 123,533 (35,926) 74,572
Total engineering department 1,193,574 1,193,574 1,105,897 87,677 929,219
Street department
Personal services 868,335 868,335 1,116,047 (247,712) 969,030
Supplies 240,219 240,219 142,538 97,681 162,464
Other services and charges 860,819 860,819 743,127 117,692 852,207
Total street department 1,969,373 1,969,373 2,001,712 (32,339) 1,983,701
Total public works 3,162,947 3,162,947 3,107,609 55,338 2,912,920
Budgeted Amounts
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2024
With Comparative Actual Amounts for Year Ended December 31, 2023
2024
General Fund
122
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City of Brooklyn Center, Minnesota
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures (Continued)
Current (Continued)
Community services
Other services and charges 130,000$ 130,000$ 131,795$ (1,795)$ 180,657$
Recreaction programs
Personal services 1,078,162 1,078,162 1,052,959 25,203 1,017,893
Supplies 39,825 39,825 17,652 22,173 62,242
Other services and charges 154,594 154,594 188,771 (34,177) 210,723
Total recreation programs 1,272,581 1,272,581 1,259,382 13,199 1,290,858
Community center
Personal services 834,988 834,988 884,906 (49,918) 716,993
Supplies 81,700 81,700 70,583 11,117 75,384
Other services and charges 236,490 236,490 249,890 (13,400) 217,216
Total community center 1,153,178 1,153,178 1,205,379 (52,201) 1,009,593
Park maintenance
Personal services 1,099,183 1,099,183 1,050,461 48,722 1,063,767
Supplies 90,400 90,400 79,353 11,047 112,776
Other services and charges 625,542 625,542 606,797 18,745 557,190
Total park maintenance 1,815,125 1,815,125 1,736,611 78,514 1,733,733
Total parks and recreation 4,240,884 4,240,884 4,201,372 39,512 4,034,184
Economic development
Convention bureau
Other services and charges 430,000 430,000 370,651 59,349 524,997
Community development administration
Personal services 272,173 272,173 195,654 76,519 145,952
Supplies 4,675 4,675 7,078 (2,403) 1,618
Other services and charges 53,240 53,240 53,880 (640) 36,796
Total community development administration 330,088 330,088 256,612 73,476 184,366
Total economic development 760,088 760,088 627,263 132,825 709,363
Nondepartmental
Unallocated
Personal services (400,000) (400,000) - (400,000) -
Supplies 8,000 8,000 12,163 (4,163) 14,435
Other services and charges 536,682 536,682 496,371 40,311 545,290
Total nondepartmental 144,682 144,682 508,534 (363,852) 559,725
Total Current 29,885,872 29,885,872 29,068,610 817,262 27,814,150
Capital Outlay
Public works - - - - 581
Economic development 5,352 5,352 4,996 356 6,825
Total Capital Outlay 5,352 5,352 4,996 356 7,406
Total Expenditures 29,891,224 29,891,224 29,073,606 817,618 27,821,556
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,884,605) (1,884,605) (572,252) (1,312,353) (1,034,117)
Other Financing Sources (Uses)
Transfers in
Operating - - 123,992 (123,992) -
Administrative services reimbursed 2,051,200 2,051,200 1,765,095 286,105 1,771,717
Transfers out (166,595) (166,595) (166,700) 105 (180,000)
Total Other Financing Sources (Uses)1,884,605 1,884,605 1,722,387 162,218 1,591,717
Net Change in Fund Balances - - 1,150,135 (1,150,135) 557,600
Fund Balances, January 1 13,595,819 13,595,819 13,595,819 - 13,038,219
Fund Balances, December 31 13,595,819$ 13,595,819$ 14,745,954$ (1,150,135)$ 13,595,819$
With Comparative Actual Amounts for Year Ended December 31, 2023
2024
Budgeted Amounts
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual (Continued)
For the Year Ended December 31, 2024
123
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City of Brooklyn Center, Minnesota
Debt Service Funds
Combining Balance Sheet (Continued on the Following Pages)
December 31, 2024
316 317 318 319 320 321
General General General General General General
Obligation Obligation Obligation Obligation Obligation Obligation
Improvement Improvement Improvement Improvement Improvement Improvement
Bonds 2013B Bonds 2015A Bonds 2016A Bonds 2017A Bonds 2018A Bonds 2019A
Assets
Cash and investments 116,087$ 541,452$ 281,863$ 690,168$ 769,928$ 1,046,967$
Receivables
Special assessments 2,360 79,555 - 183,555 462,983 666,902
Total Assets 118,447$ 621,007$ 281,863$ 873,723$ 1,232,911$ 1,713,869$
Deferred Inflows of Resources
Unavailable revenue
Special assessments 2,137$ 76,563$ -$ 183,369$ 461,390$ 665,947$
Fund Balances
Restricted
Debt service 116,310 544,444 281,863 690,354 771,521 1,047,922
Total Liabilities, Deferred Inflows of
Resources and Fund Balances 118,447$ 621,007$ 281,863$ 873,723$ 1,232,911$ 1,713,869$
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322 323 324 372 373 375
General General General
Obligation Obligation Obligation Tax Tax Tax
Improvement Improvement Improvement Increment Increment Increment
Bonds 2020A Bonds 2021A Bonds 2022A Bonds 2016C Bonds 2016B Bonds 2013A Total
274,332$ 785,091$ 500,429$ 1,293$ 1,550$ 800$ 5,009,960$
- 750,225 179,502 - - - 2,325,082
274,332$ 1,535,316$ 679,931$ 1,293$ 1,550$ 800$ 7,335,042$
-$ 750,225$ 179,502$ -$ -$ -$ 2,319,133$
274,332 785,091 500,429 1,293 1,550 800 5,015,909
274,332$ 1,535,316$ 679,931$ 1,293$ 1,550$ 800$ 7,335,042$
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City of Brooklyn Center, Minnesota
Debt Service Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
(Continued on the Following Pages)
For the Year Ended December 31, 2024
316 317 318 319 320 321
General General General General General General
Obligation Obligation Obligation Obligation Obligation Obligation
Improvement Improvement Improvement Improvement Improvement Improvement
Bonds 2013B Bonds 2015A Bonds 2016A Bonds 2017A Bonds 2018A Bonds 2019A
Revenues
Taxes
Property taxes -$ 260,397$ 211,785$ 285,759$ 249,971$ 189,736$
Special assessments 1,987 83,142 - 72,811 139,779 211,366
Investment earnings (loss)15,059 15,327 7,555 21,128 22,139 33,391
Total Revenues 17,046 358,866 219,340 379,698 411,889 434,493
Expenditures
Debt service
Principal - 348,796 190,000 375,000 380,000 345,000
Interest - 21,771 13,600 47,263 86,350 114,425
Fiscal agent fees - 1,735 858 1,360 1,583 2,245
Total Expenditures - 372,302 204,458 423,623 467,933 461,670
Excess (Deficiency) of Revenues
Over (Under) Expenditures 17,046 (13,436) 14,882 (43,925) (56,044) (27,177)
Other Financing Sources (Uses)
Transfers in - - - - - -
Net Change in Fund Balances 17,046 (13,436) 14,882 (43,925) (56,044) (27,177)
Fund Balances, January 1 99,264 557,880 266,981 734,279 827,565 1,075,099
Fund Balances, December 31 116,310$ 544,444$ 281,863$ 690,354$ 771,521$ 1,047,922$
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322 323 324 372 373 375
General General General
Obligation Obligation Obligation Tax Tax Tax
Improvement Improvement Improvement Increment Increment Increment
Bonds 2020A Bonds 2021A Bonds 2022A Bonds 2016C Bonds 2016B Bonds 2013A Total
241,080$ 213,382$ 166,746$ -$ -$ -$ 1,818,856$
- 171,375 78,889 - - - 759,349
16,050 14,854 190 - - - 145,693
257,130 399,611 245,825 - - - 2,723,898
200,000 280,000 175,000 - 330,000 - 2,623,796
26,600 82,250 95,625 - 43,525 - 531,409
1,438 758 1,160 357 858 - 12,352
228,038 363,008 271,785 357 374,383 - 3,167,557
29,092 36,603 (25,960) (357) (374,383) - (443,659)
- - - - 374,383 - 374,383
29,092 36,603 (25,960) (357) - - (69,276)
245,240 748,488 526,389 1,650 1,550 800 5,085,185
274,332$ 785,091$ 500,429$ 1,293$ 1,550$ 800$ 5,015,909$
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City of Brooklyn Center, Minnesota
Statement of Net Position
Nonmajor Proprietary Funds
December 31, 2024
609 408 l 617 652 653
Municipal Heritage Center Street Light Recycling
Liquor of Brooklyn Center Utility Utility Total
Assets
Current Assets
Cash and investments 1,129,226$ (684,606)$ 778,897$ (5,091)$ 1,218,426$
Receivables
Accounts, net of allowances 9,467 169,986 109,496 146,562 435,511
Intergovernmental - 70,225 - - 70,225
Inventories 932,167 - - - 932,167
Prepaid items 8,105 14,921 - - 23,026
Total Current Assets 2,078,965 (429,474) 888,393 141,471 2,679,355
Noncurrent Assets
Capital assets
Land 594,298 1,493,300 - - 2,087,598
Land improvements - 570,769 - - 570,769
Building and improvements 2,952,675 13,057,343 - - 16,010,018
Machinery and equipment 106,913 779,640 - - 886,553
Street light systems - - 2,980,836 - 2,980,836
Less accumulated depreciation/amortization (665,928) (13,259,188) (1,162,006) - (15,087,122)
Total Capital Assets
(Net of Accumulated Depreciation/Amortization)2,987,958 2,641,864 1,818,830 - 7,448,652
Total Assets 5,066,923 2,212,390 2,707,223 141,471 10,128,007
Liabilities
Current Liabilities
Accounts payable 187,789 24,036 3,981 632 216,438
Contracts payable - 139,291 - - 139,291
Accrued salaries and wages payable 7,710 7,661 - - 15,371
Accrued interest payable 27,156 - - - 27,156
Due to other governments 64,093 17,712 - 49,686 131,491
Deposits payable - 367,157 - - 367,157
Unearned revenue 89,188 - - - 89,188
Bonds payable 155,000 - - - 155,000
Total Current Liabilities 530,936 555,857 3,981 50,318 1,141,092
Noncurrent Liabilities
Bonds payable 1,998,858 - - - 1,998,858
Total Liabilities 2,529,794 555,857 3,981 50,318 3,139,950
Net Position
Net investment in capital assets 834,100 2,502,573 1,818,830 - 5,155,503
Unrestricted 1,703,029 (846,040) 884,412 91,153 1,832,554
Total Net Position 2,537,129$ 1,656,533$ 2,703,242$ 91,153$ 6,988,057$
Business-type Activities - Enterprise Funds
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City of Brooklyn Center, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Proprietary Funds
For the Year Ended December 31, 2024
609 408 l 617 652 653
Municipal Heritage Center Street Light Recycling
Liquor of Brooklyn Center Utility Utility Total
Operating Revenues
Sales and user fees 6,765,956$ 4,243,690$ -$ -$ 11,009,646$
Cost of sales (4,624,356) (2,213,038) - - (6,837,394)
Gross Profit 2,141,600 2,030,652 - - 4,172,252
Charges for services - - 556,065 555,504 1,111,569
Total Operating Revenues 2,141,600 2,030,652 556,065 555,504 5,283,821
Operating Expenses
Personal services 1,210,627 1,270,726 - - 2,481,353
Supplies 42,185 58,465 - - 100,650
Other services 389,237 897,687 162,251 626,103 2,075,278
Insurance 42,639 51,165 2,564 2,530 98,898
Utilities 78,986 145,972 189,325 - 414,283
Rent 166,845 - - - 166,845
Depreciation/amortization 119,845 159,783 190,934 - 470,562
Total Operating Expenses 2,050,364 2,583,798 545,074 628,633 5,807,869
Operating Income (Loss)91,236 (553,146) 10,991 (73,129) (524,048)
Nonoperating Revenues (Expenses)
Interest earnings 37,699 54,021 27,141 1,292 120,153
Other revenue 3,461 34,096 14,750 - 52,307
Interest and other costs (53,224) - - - (53,224)
Total Nonoperating Revenues (Expenses)(12,064) 88,117 41,891 1,292 119,236
Change in Net Position 79,172 (465,029) 52,882 (71,837) (404,812)
Net Position, January 1 2,457,957 2,121,562 2,650,360 162,990 7,392,869
Net Position, December 31 2,537,129$ 1,656,533$ 2,703,242$ 91,153$ 6,988,057$
Business-type Activities - Enterprise Funds
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609 408 l 617 652 653
Municipal Heritage Center Street Light Recycling
Liquor of Brooklyn Center Utility Utility Total
Cash Flows from Operating Activities
Receipts from customers and users 6,766,003$ 4,133,414$ 560,076$ 493,406$ 11,952,899$
Payments to suppliers and vendors (5,283,340) (3,383,461) (358,986) (578,315) (9,604,102)
Payments to and on behalf of employees (1,246,469) (1,301,191) - - (2,547,660)
Other receipts 3,461 34,096 14,750 - 52,307
Net Cash Provided (Used) by Operating Activities 239,655 (517,142) 215,840 (84,909) (146,556)
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets - (38,825) - - (38,825)
Principal paid on long-term debt (145,000) - - - (145,000)
Interest paid on long-term debt (69,471) - - - (69,471)
Net Cash Used by Capital and Related Financing Activities (214,471) (38,825) - - (253,296)
Cash Flows from Investing Activities
Interest received on cash and investments 37,699 54,021 27,141 1,292 120,153
Net Increase (Decrease) in Cash and Cash Equivalents 62,883 (501,946) 242,981 (83,617) (279,699)
Cash and Cash Equivalents, January 1 1,066,343 (182,660) 535,916 78,526 1,498,125
Cash and Cash Equivalents, December 31 1,129,226$ (684,606)$ 778,897$ (5,091)$ 1,218,426$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss)91,236$ (553,146)$ 10,991$ (73,129)$ (524,048)
Adjustments to reconcile operating income to
net cash provided (used) by operating activities
Depreciation/amortization 119,845 159,783 190,934 - 470,562
Other income (expense) related to operations 3,461 34,096 14,750 - 52,307
(Increase) decrease in assets
Accounts receivable - (33,612) 4,011 (62,098) (91,699)
Assessment receivable - - - - -
Intergovernmental - (70,225) - - (70,225)
Prepaid items 9,205 (2,348) - - 6,857
Inventories 43,252 37,881 - - 81,133
Increase (decrease) in liabilities
Accounts payable 8,097 (5,904) (4,846) 632 (2,021)
Contract payable - (40,934) - - (40,934)
Due to other governments 354 (5,829) - 49,686 44,211
Accrued salaries and wages (35,842) (30,465) - - (66,307)
Deposits payable - (6,439) - - (6,439)
Unearned revenue 47 - - - 47
Increase (decrease) in deferred inflows of resources
Deferred pension resources 239,655 (517,142) 215,840 - -
Net Cash Provided (Used) by Operating Activities 239,655$ (517,142)$ 215,840$ (84,909)$ (146,556)$
Schedule of Noncash Investing Capital and Financing Activities
Amortization of bond premiums 13,987$ -$ -$ -$ 13,987$
Business-type Activities
City of Brooklyn Center, Minnesota
Statement of Cash Flows
Nonmajor Proprietary Funds
For the Year Ended December 31, 2024
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701 703 704 905 906
Central EE Retirement EE Comp Pension -Pension - Garage Benefit Absences GERP PEPFP Total
Assets
Current Assets
Cash and investments 4,129,640$ -$ 1,428,181$ -$ -$ 5,557,821$
Receivables
Accounts, net of allowances -38,542 - - - 38,542
Intergovernmental 18,104 - - - - 18,104
Inventories 37,862 - - - - 37,862
Total Current Assets 4,185,606 38,542 1,428,181 - - 5,652,329
Noncurrent Assets
Capital assets
Building and improvements 166,108 - - - - 166,108
Machinery and equipment 14,676,366 - - - - 14,676,366
Construction in progress 110,000 - - - - 110,000
Less accumulated depreciation (8,637,149) - - - - (8,637,149)
Total Capital Assets
(Net of Accumulated Depreciation)6,315,325 - - - - 6,315,325
Total Assets 10,500,931 38,542 1,428,181 - - 11,967,654
Deferred Outflows of Resources
Deferred pension resources - - - 958,902 7,761,978 8,720,880
Deferred other postemployment benefit resources -2,181,311 - - - 2,181,311
Total Deferred Outflows of Resources -2,181,311 -958,902 7,761,978 10,902,191
Liabilities
Current Liabilities
Accounts payable 86,514 - - - - 86,514
Accrued salaries and wages payable 3,177 - - - - 3,177
Due to other funds -383,008 - - - 383,008
Compensated absences payable - - 540,158 - - 540,158
Total Current Liabilities 89,691 383,008 540,158 - - 1,012,857
Noncurrent Liabilities
Compensated absences payable - - 539,987 - - 539,987
Total other postemployment benefits liability -4,013,370 - - - 4,013,370
Net pension liability - - - 4,654,380 4,715,660 9,370,040
Total Noncurrent Liabilities -4,013,370 539,987 4,654,380 4,715,660 13,923,397
Total Liabilities 89,691 4,396,378 1,080,145 4,654,380 4,715,660 14,936,254
Deferred Inflows of Resources
Deferred pension resources - - - 3,071,468 8,792,047 11,863,515
Deferred other postemployment benefit resources -766,724 - - - 766,724
Total Deferred Inflows of Resources -766,724 -3,071,468 8,792,047 12,630,239
Net Position
Investment in capital assets 6,315,325 - - - - 6,315,325
Unrestricted 4,095,915 (2,943,249) 348,036 (6,766,946) (5,745,729) (11,011,973)
Total Net Position 10,411,240$ (2,943,249)$ 348,036$ (6,766,946)$ (5,745,729)$ (4,696,648)$
City of Brooklyn Center, Minnesota
Internal Service Funds
Combining Statement of Net Position
December 31, 2024
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701 703 704 905 906
Central EE Retirement EE Comp Pension -Pension - Garage Benefit Absences GERP PEPFP Total
Operating Revenues
Sales and user fees 2,940,979$ -$ -$ -$ -$ 2,940,979$
Operating Expenses
Personal services 479,676 383,907 (292,662) (316,691) (125,621) 128,609
Supplies 551,513 - - - - 551,513
Other services 368,376 - - - - 368,376
Insurance 77,501 - - - - 77,501
Utilities 1,062 - - - - 1,062
Depreciation 1,081,809 - - - - 1,081,809
Total Operating Expenses 2,559,937 383,907 (292,662) (316,691) (125,621) 2,208,870
Operating Income (Loss)381,042 (383,907) 292,662 316,691 125,621 732,109
Nonoperating Revenues (Expenses)
Intergovernmental - 253,023 - 217,372 121,892 592,287
Interest earnings (loss)147,446 579 55,374 - - 203,399
Gain (loss) on sale/disposal of capital assets 450,000 - - - - 450,000
Other revenue 461,126 - - - - 461,126
Total Nonoperating Revenues (Expenses)1,058,572 253,602 55,374 217,372 121,892 1,706,812
Change in Net Position 1,439,614 (130,305) 348,036 534,063 247,513 2,438,921
Net Position, January 1 8,971,626 (2,812,944) - (7,301,009) (5,993,242) (7,135,569)
Net Position, December 31 10,411,240$ (2,943,249)$ 348,036$ (6,766,946)$ (5,745,729)$ (4,696,648)$
City of Brooklyn Center, Minnesota
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Net Position
For the Year Ended December 31, 2024
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701 703 704 905 906
Central EE Retirement EE Comp Pension -Pension -
Garage Benefit Absences GERF PEPFF Total
Cash Flows from Operating Activities
Receipts from interfund services provided 2,922,875$ -$ -$ 217,372$ 121,892$ 3,262,139$
Payments to suppliers and vendors (906,632) - - - - (906,632)
Payments to and on behalf of employees (491,978) (222,212) - (217,372) (121,892) (1,053,454)
Other receipts 461,126 - - - - 461,126
Net Cash Provided (Used) by Operating Activities 1,985,391 (222,212) - - - 1,763,179
Cash Flows from Noncapital Financing Activities
Intergovernmental grants - 253,023 - - - 253,023
Increase (decrease) in due to other funds - (31,390) - - - (31,390)
Net Cash Provided (Used) by Noncapital Financing Activities - 221,633 - - - 221,633
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets (2,269,933) - - - - (2,269,933)
Proceeds from sale of capital assets 450,000 - - - - 450,000
Net Cash Used by Capital and Related Financing Activities (1,819,933) - - - - (1,819,933)
Cash Flows from Investing Activities
Interest received on cash and investments 147,446 579 55,374 - - 203,399
Net Increase (Decrease) in Cash and Cash Equivalents 312,904 - 55,374 - - 368,278
Cash and Cash Equivalents, January 1 3,816,736 - 1,372,807 - - 5,189,543
Cash and Cash Equivalents, December 31 4,129,640$ -$ 1,428,181$ -$ -$ 5,557,821$
Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities
Operating income (loss)381,042$ (383,907)$ 292,662$ 316,691$ 125,621$ 732,109$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities
Other income related to operations 461,126 - - 217,372 121,892 800,390
Depreciation 1,081,809 - - - - 1,081,809
(Increase) decrease in assets
Accounts receivable - 11,270 - - - 11,270
Intergovernmental (18,104) - - - - (18,104)
Prepaid items 4,682 - - - - 4,682
Inventories 2,350 - - - - 2,350
(Increase) decrease in deferred outflows of resources
Deferred pension resources - - - 796,997 1,858,167 2,655,164
Deferred other postemployment benefit resources - (1,076,972) - - - (1,076,972)
Increase (decrease) in liabilities
Accounts payable 84,788 - - - - 84,788
Accrued wages payable (12,302) - - - - (12,302)
Net pension liability - - - (2,229,234) (1,247,222) (3,476,456)
Compensated absences payable - - (292,662) - - (292,662)
Other postemployment benefits liability - 1,344,601 - - - 1,344,601
(Increase) decrease in deferred inflows of resources
Deferred pension resources - - - 898,174 (858,458) 39,716
Deferred other postemployment benefit resources - (117,204) - - - (117,204)
Net Cash Provided (Used) by Operating Activities 1,985,391$ (222,212)$ -$ -$ -$ 1,763,179$
City of Brooklyn Center, Minnesota
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended December 31, 2024
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City of Brooklyn Center, Minnesota
Summary Financial Report
Revenues and Expenditures For General Operations
Governmental Funds
For the Years Ended December 31, 2024 and 2023
Percent
Total Total Increase
2024 2023 (Decrease)
Revenues
Taxes 26,746,521$ 25,242,632$ 5.96 %
Franchise fees 673,702 561,179 20.05
Special assessments 1,409,974 1,632,828 (13.65)
Licenses and permits 913,266 1,080,983 (15.52)
Intergovernmental 6,747,353 7,616,656 (11.41)
Charges for services 1,680,469 996,512 68.64
Fines and forfeits 361,302 348,045 3.81
Investment earnings (loss)1,724,564 1,323,823 30.27
Miscellaneous 404,432 410,427 (1.46)
Total Revenues 40,661,583$ 39,213,085$ 3.69 %
Per Capita 1,197$ 1,154$ 3.69 %
Expenditures
Current
General government 6,005,176$ 7,164,544$ (16.18) %
Public safety 15,397,235 14,335,045 7.41
Public works 3,413,611 3,199,285 6.70
Community services 131,795 180,657 (27.05)
Culture and recreation 5,610,160 5,294,298 5.97
Economic development 3,101,579 2,914,683 6.41
Nondepartmental 508,534 559,725 (9.15)
Capital outlay
Public safety - 82,425 (100.00)
Public works 6,889,219 2,861,851 140.73
Culture and recreation - 718,320 (100.00)
Economic development 4,996 6,825 (26.80)
Debt service
Principal 2,623,796 2,355,537 11.39
Interest and other charges 543,761 589,269 (7.72)
Bond issuance costs 62,175 - N/A
Total Expenditures 44,292,037$ 40,262,464$ 10.01 %
Per Capita 1,303$ 1,185$ 10.01 %
Total Long-term Indebtedness 20,169,126$ 17,530,377$ 15.05 %
Per Capita 594$ 516$ 15.05
General Fund Balance - December 31 14,745,954$ 13,595,819$ 8.46 %
Per Capita 434$ 400$ 8.46
The purpose of this report is to provide a summary of financial information concerning the City of Brooklyn Center to
interested citizens. The complete financial statements may be examined at City Hall, Brooklyn Center, Minnesota.
Questions about this report should be directed to the Finance Director at 763-569-3345.
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OTHER REQUIRED REPORTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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BLANK INTENTIONALLY
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INDEPENDENT AUDITOR’S REPORT ON
MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and City Council
City of Brooklyn Center, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial
statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund
information of the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2024, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated NEED DATE.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the
provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit
Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. §6.65, insofar as they relate to accounting
matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly,
had we performed additional procedures, other matters may have come to our attention regarding the City’s
noncompliance with the above referenced provisions, insofar as they relate to accounting matters.
This report is intended solely for the information and use of those charged with governance and management of the City
and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties.
Abdo
Mankato, Minnesota
NEED DATE
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and City Council
City of Brooklyn Center, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of
the United States, the financial statements of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Brooklyn Center, Minnesota (the City), as of and for the year
ended December 31, 2024, which collectively comprise the City’s basic financial statements and have issued our report
thereon dated NEED DATE.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees,
in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a
reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected
and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance. We consider the
deficiencies described in the accompanying Schedule of Findings, Responses and Questioned Costs as items 2024-001
and 2004-002 to be a significant deficiency.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and
therefore, material weaknesses or significant deficiencies may exist that were not identified However, as described in the
accompanying Schedule of Findings, Responses and Questioned Costs, we identified a certain deficiency in internal
control that we consider to be a material weakness and another deficiency that we consider to be a significant deficiency
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
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The City’s Responses to Findings
The City’s response to the findings identified in our audit are described in the accompanying Schedule of Findings,
Responses and Questioned Costs. The City’s responses were not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results
of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This
report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Abdo
Mankato, Minnesota
NEED DATE
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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
Honorable Mayor and City Council
City of Brooklyn Center, Minnesota
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Brooklyn Center, Minnesota (the City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of
the City’s major federal programs for the year ended December 31, 2024. The City’s major federal programs are
identified in the summary of auditor’s results section of the accompanying Schedule of Findings, Responses and
Questioned Costs.
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that
could have a direct and material effect on each of its major federal programs for the year ended December 31, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s
Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a
legal determination of the City ’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation,
and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules,
and provisions of contracts or grant agreements applicable to City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City ’s compliance
based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting
material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s
compliance with the requirements of each major federal program as a whole.
140
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In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the
Uniform Guidance, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding the City’s compliance with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
•Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design
audit procedures that are appropriate in the circumstances and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that
we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not
allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance.
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in
internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,
this report is not suitable for any other purpose.
Abdo
Mankato, Minnesota
NEED DATE
141
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Assistance Pass-Through Total PassedListingEntity Identifying Federal Through toNumberNumberExpendituresSubrecipients
U.S. Department Direct Edward Byrne Memorial Justice Assistance Grant Program 16.738 None 3,536$ -$ of Justice
U.S. Department Minnesota Department COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027C G90ARPADIST 861,316 - of Treasury of Revenue
Total Federal Expenditures 864,852$ -$
Funding Source Department/Entity Name
City of Brooklyn Center, Minnesota
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2024
Federal Administering Program
142
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City of Brooklyn Center, Minnesota
Notes to the Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2024
Note 1: Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of Brooklyn
Center, Minnesota (the City) for the year ended December 31, 2024. The City's reporting entity is defined in Note 1A to the
City's financial statements. The information in this schedule is presented in accordance with the requirement of the
Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. All Federal awards received
directly from Federal agencies as well as Federal awards passed through other government agencies are included on the
schedule.
Note 2: Summary of Significant Accounting Policies for Expenditures
Expenditures reported on this schedule are reported on the modified accrual basis of accounting.
Note 3: Pass-through Entity Identifying Numbers
Pass-through entity identifying numbers, if any, are presented where available.
Note 4: Subrecipients
There were no pass through dollars provided to subrecipients.
Note 5: Indirect Cost Rate
During the year ended December 31, 2024, the City did not elect to use the 10% de minimis indirect cost rate.
143
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Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting
Material weaknesses identified?No
Significant deficiencies identified not considered to be material weaknesses?Yes
Noncompliance material to financial statements noted?No
Federal Awards
Internal control over major programs
Material weaknesses identified?No
Significant deficiencies identified not considered to be material weaknesses?No
Type of auditor's report issued on compliance for major programs Unmodified
Any audit findings disclosed that are required to be reported in accordance with
2CFR section 200.516(a) of the Uniform Guidance.No
Identification of Major Programs/Clusters ALN No.
Coronavirus State and Local Fiscal Recovery Funds 21.027C
Dollar threshold used to distinguish between Type A and Type B Programs $750,000
Auditee qualified as low-risk auditee?No
Section II - Financial Statement Findings
Section III - Major Federal Award Findings and Questioned Costs
Section IV - Corrective Action Plans
A Corrective Action Plan is attached as required to be reported under the Uniform Guidance.
Section V - Schedule of Prior Year Audit Findings
Prior year audit findings are attached.
City of Brooklyn Center, Minnesota
Schedule of Findings, Responses and Questioned Costs
For the Year Ended December 31, 2024
There were two significant deficiencies (2023-001 and 2023-002) but no material weaknesses or
instances of noncompliance reported in the Independent Auditor's Report on Internal Control over
Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .
There were no significant deficiencies, material weaknesses or instances of noncompliance
including questioned costs that are required to be reported in accordance with the Uniform
144
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City of Brooklyn Center, Minnesota
Schedule of Findings, Responses and Questioned Costs (Continued)
For the Year Ended December 31, 2024
Finding Description
2024-001 Internal Controls over Credit Cards
Condition: During our audit, we discovered the City did not follow written procedures under their purchasing
policy dated November 24, 2019.
Criteria: The City’s policy requires only purchases that cannot readily be made through the City’s normal
vendor payment process to be authorized for credit card use. Moreover, a significant number of
transactions lack the necessary documentation and support required by the purchasing policy.
Cause: We noted several transactions purchased on City credit cards outside of the allowed exceptions
and not properly documented as described in the purchasing policy.
Effect: The City did not have proper controls in place to ensure the purchasing policy was being
followed.
Recommendation: The City should continuously review, on a recommended annual basis, their written policies and
procedures to adhere to ongoing changes in the current environment.
Management Response:
The City will work to establish changes to ensure future policies and procedures are reviewed on a regular basis.
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City of Brooklyn Center, Minnesota
Schedule of Findings, Responses and Questioned Costs (Continued)
For the Year Ended December 31, 2024
Finding Description
2024-001 Internal Controls over American Rescue Plan Act Obligations
Condition: During our audit, we discovered the City did not have all approved contracts as of December 31,
2024 to meet the obligation requirements on file for review.
Criteria: The American Rescue Plan Act grant deadline for spending and obligating dollars to be spent is
December 31, 2024. The grant requires that obligated fund have signed and approved contracts
in place by December 31, 2024 and to be spent by December 31, 2026. The City’s control should
have these contracts on file for review of the obligated funds. These contracts were not readily
available for review at the time of the audit.
Cause: We noted several of the documented obligations that did not have signed and approved
obligations as of December 31, 2024 available for review.
Effect: This could result in loss of funds for this potentially obligated projects and the return of the
received federal dollars that are not properly documented.
Recommendation: The City should have these contacts on file for review to meet the appropriate grant
requirements.
Management Response:
The City review these obligations and to ensure these contracts are on file for review and meet grant obligations .
146
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2024-001 Internal Controls over Credit Cards
CORRECTIVE ACTION PLAN (CAP):
1.Explanation of Disagreement with Audit Findings:
There is no disagreement with the audit finding.
2.Actions Planned in Response to Finding:
The City will work to establish changes to ensure future policies and procedures are reviewed on a regular basis.
3.Official Response of Ensuring CAP:
Dr. Reginald M. Edwards, City Manager, is the official responsible for ensuring correction of this significant deficiency.
4.Planned Completion Date for CAP:
December 31, 2025
5.Plan to Monitor Completion of CAP
The City Council will be monitoring this corrective action plan.
Sincerely,
Dr. Reginald M. Edwards
City Manager
147
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City of
Brooklyn Center
2024 Financial Statement Audit
DRAFT
Page 151 of 213
Introduction
•Audit Results
•General Fund
•Other Governmental Funds
•Enterprise Funds
•Key Performance Indicators
2
DRAFT
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3
Audit Results
Minnesota Legal
ComplianceAuditor’s Opinion Single Audit Report
Unmodified opinion under GAAP No instances of noncompliance No instance of noncompliance with
OMB Compliance Supplement
requirements
DRAFT
Page 153 of 213
Audit Results
2024 Audit Findings
•Internal Controls over Credit Cards
•Internal Control Finding
•Internal Controls over ARPA Obligations
•Internal Control Finding
4
DRAFT
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5
•Internal Controls over Credit Cards
•Internal Control Finding
•Monthly Reports and Monitoring
•Removed for 2024
Results from Prior Year
2023 Audit FindingsDRAFT
Page 155 of 213
6
General Fund Fund Balances
52.0%52.0%
45.7%46.3%
49.4%
$23,793,989 $23,755,527
$28,668,929 $28,958,636 $29,481,545
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2020 2021 2022 2023 2024 2025
City Fund Balance Policy (50% to 52%) Unassigned Fund Balance Budget
DRAFT
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7
General Fund Budget to Actual
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 28,006,619$ 28,501,354$ 494,735$
Expenditures 29,891,224 29,073,606 817,618
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,884,605) (572,252) 1,312,353
Other Financing Sources (Uses)
Transfers in - 123,992 123,992
Administrative services reimbursed 2,051,200 1,765,095 (286,105)
Transfers out (166,595) (166,700) (105)
Total Other Financing Sources (Uses)1,884,605 1,722,387 (162,218)
Net Change in Fund Balances - 1,150,135 1,150,135
Fund Balances, January 1 13,595,819 13,595,819 -
Fund Balances, December 31 13,595,819$ 14,745,954$ 1,150,135$
DRAFT
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8
General Fund Revenues by Type
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Taxes Intergovernmental Transfers Other
2022 2023 2024
DRAFT
Page 158 of 213
9
Taxes
Key Performance Indicators
2021 2022 2023 2024
Class 2 Cities (20,001 - 100,000)43.1%42.7%N/A N/A
Comparable City Group 43.8%43.8%N/A N/A
Cities in Hennepin County 41.5%40.1%N/A N/A
City of Brooklyn Center 57.1%55.9%54.7%56.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Tax RateDRAFT
Page 159 of 213
10
Taxes
Key Performance Indicators
2021 2022 2023 2024
Class 2 Cities (20,001 - 100,000)$620 $654 N/A N/A
Comparable City Group $751 $771 N/A N/A
Cities in Hennepin County $847 $878 N/A N/A
City of Brooklyn Center $848 $690 $737 $729
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Taxes -Per CapitaDRAFT
Page 160 of 213
11
General Fund Expenditures by Type
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
General
Government
Public Safety Public Works Parks and
Recreation
Economic
Development
Other
2022 2023 2024
DRAFT
Page 161 of 213
12
Special
Revenue
Fund
Balances
Increase
2024 2023 (Decrease)
Major
Tax Increment District No. 3 20,961,704$ 21,605,846$ (644,142)$
Nonmajor
Housing and Redevelopment Authority 8,113 1,612 6,501
Economic Development Authority 1,640,654 1,534,689 105,965
Community Development Block Grant 72,376 72,376 -
Police Forfeitures 72,619 104,772 (32,153)
Revolving Loan 145,718 142,405 3,313
Local Affordable Housing 191,777 - 191,777
Centerbrook Golf Course (235,626) (257,858) 22,232
Tax Increment District No. 2 1,751,043 1,711,863 39,180
Tax Increment District No. 5 667,136 552,893 114,243
Tax Increment District No. 6 43,718 36,237 7,481
Tax Increment District No. 7 562,698 451,317 111,381
Tax Increment District No. 8 172,653 128,534 44,119
Tax Increment District No. 9 22,983 (2,089) 25,072
Tax Increment District No. 10 (3,418) (2,433) (985)
City Initiative Grants 1,580,142 2,291,366 (711,224)
Opioid Settlement Funds 118,959 77,689 41,270
American Rescue Plan Act - - -
Total 27,773,249$ 28,449,219$ (675,970)$
Fund
Fund Balances
December 31
DRAFT
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13
Capital
Project
Fund
Balances
Increase
2024 2023 (Decrease)
Major
Special Assessment Construction 869,801$ (798,565)$ 1,668,366$
Street Reconstruction 7,343,327 6,282,679 1,060,648
Nonmajor
Capital Improvements 1,470,287 1,728,419 (258,132)
Municipal State Aid for Construction 4,985,547 3,941,993 1,043,554
Capital Reserve Emergency (629,187) (543,963) (85,224)
Technology 433,121 341,388 91,733
Total 14,472,896$ 10,951,951$ 3,520,945$
Fund
December 31
Fund Balances
DRAFT
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14
Capital
Project
Fund
Balances
(Continued)
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Nonspendable Restricted Committed Assigned Unassigned
2022 2023 2024
DRAFT
Page 164 of 213
15
Debt
Service
Total
Cash and Total Bonds Year of
Investments Assets Outstanding Maturity
316 General Obligation Improvements Bonds 2013B 116,087$ 118,447$ -$ Matured
317 General Obligation Improvements Bonds 2015A 541,452 621,007 713,892 2026
318 General Obligation Improvements Bonds 2016A 281,863 281,863 585,000 2027
319 General Obligation Improvements Bonds 2017A 690,168 873,723 1,570,000 2028
320 General Obligation Improvements Bonds 2018A 769,928 1,232,911 2,035,000 2029
321 General Obligation Improvements Bonds 2019A 1,046,967 1,713,869 2,275,000 2030
322 General Obligation Improvements Bonds 2020A 274,332 274,332 1,520,000 2031
323 General Obligation Improvements Bonds 2021A 785,091 1,535,316 2,475,000 2032
324 General Obligation Improvements Bonds 2022A 500,429 679,931 1,920,000 2033
325 General Obligation Improvements Bonds 2024A - - 5,280,000 2035
372 Tax Increment Bonds 2016C 1,293 1,293 - Matured
373 Tax Increment Bonds 2016B 1,550 1,550 1,745,000 2029
374 Tax Increment Bonds 2013A 800 800 - Matured
Total 5,009,960$ 7,335,042$ 20,118,892$
Total Remaining Interest Payments 3,035,328$
Description
DRAFT
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16
Debt
Service
(Continued)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2025 2026 2027 2028 2029 2030 2031 2032 2033
Principal Interest
DRAFT
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17
Internal
Service
Balances
Increase Cash
2024 2023 (Decrease) Balance
Central Garage 10,411,240$ 8,971,626$ 1,439,614$ 4,129,640$
EE Retirement Benefit (2,943,249) (2,812,944) (130,305) -
EE Comp Absences 348,036 - 348,036 1,428,181
Pension - GERP (6,766,946) (7,301,009) 534,063 -
Pension - PEPFP (5,745,729) (5,993,242) 247,513 -
Total (4,696,648)$ (7,135,569)$ 2,438,921$ 5,557,821$
Fund Balances
December 31
Fund DRAFT
Page 167 of 213
18
Water
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$4,331,324 $4,173,717
$5,021,017 $4,775,392
$2,213,640 $2,624,748 $2,677,098 $2,895,833
$2,325,717
$2,571,462 $2,731,029 $2,910,863
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Operating Disbursements Debt Payments
$3,678,282
$4,043,403 $4,249,412 $4,175,887
$2,359,055
$1,223,814
$176,178
$925,900
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2021 2022 2023 2024
Actual Cash
Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
DRAFT
Page 168 of 213
19
Sanitary
Sewer
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$4,725,866 $5,001,344 $5,222,756 $5,449,155
$3,499,262 $3,670,842
$4,137,545 $4,491,438
$764,485
$921,002
$1,024,234
$1,104,703
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Bond Proceeds Operating Disbursements Debt Payments
$2,670,633 $2,859,655
$3,173,476 $3,268,570
$4,309,130 $4,397,803 $4,191,553
$4,830,308
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
DRAFT
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20
Storm
Drainage
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$1,819,733 $1,814,981 $1,893,453
$2,256,624
$777,382 $864,025 $937,349 $929,592
$475,663
$555,938
$684,962 $738,568
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Bond Proceeds Operating Disbursements Debt Payments
$944,629 $1,116,975 $1,207,243 $1,149,160
$4,998,747
$4,425,391
$4,977,736
$6,492,069
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
DRAFT
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21
Municipal
Liquor
Fund
Cash Flows from
Operations and Cash
Balances
$5,409,136
$7,411,344
$6,633,874 $6,769,464
$5,817,927
$6,810,369 $6,516,468 $6,529,809
$185,050
$294,679 $214,851 $214,471
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Operating Disbursements Debt Payments
$1,749,161
$1,917,443 $1,843,588 $1,845,852
$846,457
$1,123,446 $1,066,343 $1,129,226
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
DRAFT
Page 171 of 213
22
Liquor
Store -
Statewide
Averages
vs.
Brooklyn
Center
Liquor
Store
Sales 100.0 %100.0 %100.0 %
Cost of Sales 73.7 73.7 73.7
Gross Profit 26.3 26.3 26.3
Operating Expenses 16.0 16.0 16.0
Operating Income 10.3 10.3 10.3
Nonoperating Revenues (Expenses)0.3 0.3 0.3
Income Before Transfers 10.6 %10.6 %10.6 %
Source: Analysis of Municipal Liquor Store Operations, for the year ended December 31, 2021.
Published by the Minnesota Office of the State Auditor.
of Sales of Sales of Sales
Off-Sale Only
2021 2022 2023
Percent Percent Percent
Total Total Total
Sales 6,909,980$ 100.0 %6,565,245$ 100.0 %6,765,956$ 100.0 %
Cost of Sales (5,108,499) (73.9) (4,619,717) (70.4) (4,624,356) (68.3)
Gross profit 1,801,481 26.1 1,945,528 29.6 2,141,600 31.7
Operating Expenses (1,790,242) (25.9) (1,973,321) (30.1) (2,050,364) (30.3)
Operating Income (Loss)11,239 0.2 (27,793) (0.5) 91,236 1.4
Nonoperating Income (Expenses)(70,475) (1.0) (14,878) (0.2) (12,064) (0.2)
Change in Net Position (59,236)$ (0.8) (42,671)$ (0.7) 79,172$ 1.2
Cash and Temporary
Investments 1,123,446$ 1,066,343$ 1,129,226$
2023
Percent
2024
Percent
2022
Percent
DRAFT
Page 172 of 213
23
Heritage
Center of
Brooklyn
Center
Fund
Cash Flows from
Operations and Cash
Balances
$1,631,370
$3,169,983
$3,829,228 $4,167,510
$2,477,930
$3,760,452
$4,247,633
$4,684,652
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$1,238,965
$1,880,226
$2,123,817 $2,342,326
$813,319
$177,821 $(182,660)$(684,606)
$(1,000,000)
$(500,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (50% of Operating Costs)
DRAFT
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24
Street
Light
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$498,524 $511,742 $508,396
$574,826
$299,608
$373,770
$458,489
$358,986
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$149,804 $186,885 $229,245
$179,493
$795,499
$461,598
$535,916
$778,897
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (50% of Operating Costs)
DRAFT
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25
Recycling
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$402,156 $394,693 $414,073
$493,406
$401,977 $362,384
$571,503 $578,315
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2021 2021 2022 2022 2023 2023 2024 2024
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$200,989
$181,192
$285,752
$289,158
$205,278
$231,202
$78,526
$(5,091)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2021 2022 2023 2024
Actual Cash Minimum Target Balance (50% of Operating Costs)
DRAFT
Page 175 of 213
26
Cash and Investments Balances
by Fund Type
$57,010,506 $57,489,609
$63,949,462
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2022 2023 2024
General Fund Capital Funds Special Revenue Funds
Debt Service Funds Enterprise Funds Internal Service Funds
DRAFT
Page 176 of 213
27
Debt
Key Performance Indicators
2021 2022 2023 2024
Class 2 Cities (20,001 - 100,000)10.85%12.08%N/A N/A
Comparable City Group 15.01%11.63%N/A N/A
Cities in Hennepin County 12.80%12.62%N/A N/A
City of Brooklyn Center 16.21%16.50%8.05%8.64%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Debt Service Expenditures as a Percent of Current ExpendituresDRAFT
Page 177 of 213
28
Expenditures
Key Performance Indicators
2021 2022 2023 2024
Class 2 Cities (20,001 - 100,000)$755 $739 N/A N/A
Comparable City Group $778 $773 N/A N/A
Cities in Hennepin County $913 $929 N/A N/A
City of Brooklyn Center $784 $850 $990 $1,005
$-
$200
$400
$600
$800
$1,000
$1,200
Current Expenditures -Per CapitaDRAFT
Page 178 of 213
29
Expenditures
Key Performance Indicators
2021 2022 2023 2024
Class 2 Cities (20,001 - 100,000)$319 $315 N/A N/A
Comparable City Group $187 $262 N/A N/A
Cities in Hennepin County $430 $447 N/A N/A
City of Brooklyn Center $413 $284 $108 $203
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Capital Expenditures -Per CapitaDRAFT
Page 179 of 213
30
Your Abdo Team
Tom Olinger, CPA Kelsey Groskreutz Dave Abriol
Partner Senior Associate Associate
Phien Doan Kayley Eigenberg Jacob Spindler
Associate Associate Associate
DRAFT
Page 180 of 213
Council/Financial Commission Meeting
DATE:7/21/2025
TO:City Council and Finance Commissioners
FROM:Angela Holm, Finance Director
THROUGH:Dr. Reggie Edwards, City Manager
BY:Angela Holm, Finance Director
SUBJECT:Presentation of 2026 – 2035 Capital Improvement Plan
Requested Council Action:
Background:
Each year, City staff prepare a Capital Improvement Plan for the Council’s
consideration. This plan generally encompasses ten years of activity with a focus on
the first two or three years. Projects are often re-aligned each year within the plan to
accommodate funding needs or opportunities as well as continued evaluations of
infrastructure needs.
The Capital Improvement Plan outlines larger projects that are not considered
operational in nature. The projects often involve construction of roads, trails, and park
rehabilitation projects, as well as utility infrastructure improvement projects such as
water mains, wells, and lift stations. Due to the diverse nature of the projects, activity is
accounted for and reported in multiple funds in the City’s financial statements.
The Public Works Department manages and administers the overall plan. Collaboration
with the Finance Department is needed to ensure there is sufficient oversight of cash
flows related to each project as well as manage financing needs.
Budget Issues:
The Capital Improvement Plan is a significant component of the City’s overall budget.
Action on most projects requires extensive planning work so these projects and related
funding needs to be appropriated each year.
Inclusive Community Engagement:
Antiracist/Equity Policy Effect:
Strategic Priorities and Values:
Page 181 of 213
ATTACHMENTS:
1.2026 – 2035 Capital Improvement Plan Detail Worksheet
2.PowerPoint Presentation
Page 182 of 213
Capital Improvement Program
2026 - 2035
Special Street MSA Storm Drainage Sanitary Sewer Water Street Light Capital Projects Outside Total Project
Project Assessments Reconst. Fund Fund Utility Utility Utility Utility Funds Funds Cost
2026
John Martin Drive Improvements $310,000 $490,000 $50,000 $10,000 $160,000 $1,020,000
Humboldt Avenue (CR 57) Reconstruction (53rd to 57th)$310,000 $425,000 $276,500 $238,000 $311,500 $7,000 $2,912,000 (A)$4,480,000
Traffic Sig Sys Rehab. (Shingle Creek Pkwy/John Martin) - (Include strategic improvements such as
transition from loops, EVP, and modern cabinet)$172,000 $517,000 $689,000
Stormwater Structure Sediment Managment Project $150,000 $150,000
Hazardous Tree Management and Reforestation $150,000 $150,000
61st & Perry Avenues Storm Sewer Improvement $314,000 $314,000
2026 Storm Water Ponds Rehab $207,000 $207,000
Lift Station Nos. 3 Rehabilitation and Parking Lot Mill and Overlay $384,000 $384,000
Well No. 5 (Including VFD and Door) and Water Treatment Plant HSP No. 3 Rehab $139,000 $139,000
Heritage Center/Opportunity Area Street Light Replacement $391,000 $391,000
Well Parking Lot Mill and Overlay Project (3,4,5,6,10,8, and 9)$73,000 $73,000
Park Lighting Project $50,000 $50,000
Parks Improvement Program $200,000 $200,000
Generator Upgrade at Public Works Garage $160,000 $160,000
Facility Capital Improvement Program $170,000 $770,109 $940,109
2026 Subtotal $620,000 $597,000 $1,007,000 $997,500 $802,000 $683,500 $448,000 $1,280,109 $2,912,000 $9,347,109
NOTES:(A) Hennepin County funding estimated at 75% for street and storm costs and 25% City funding - Humboldt is a county road (CR 57)
2027
Orchard Lane North Area Improvements $800,000 $1,690,000 $850,000 $130,000 $500,000 $3,970,000
53rd and Xerxes Avenue Improvements $80,000 $230,000 $90,000 $30,000 $20,000 $400,000 $850,000
Humboldt Avenue and 65th Avenue Area Improvements $210,000 $310,000 $4,800,000 $200,000 $300,000 $1,820,000 $10,000 $2,000,000 (A)$9,650,000
Traffic Sig Sys Rehab.(66th Ave/Camden Ave) - (Include strategic improvements such as transition
from loops, EVP, and modern cabinet)$355,000 $355,000 $710,000
Traffic Calming Program $100,000 $100,000
Hazardous Tree Management and Reforestation $150,000 $150,000
69th Avenue Trail Reconstruction $227,000 $227,000
East and West Palmer Park Flood Mitigation $200,000 $200,000
Evergreen, Firehouse & Northport Park Security Improvements $269,000 $269,000
Lift Station Nos. 7 and 10 Rehabilitation, and Nos. 7 Concrete Pad Replacement $1,257,000 $1,257,000
Well No. 10 (Include light poles, unit heater, and exhaust fan) and Water Treatment Plant HSP No. 1
Rehab $150,000 $150,000
Lift Station and Well Façade Replacement. Wells 6,10,3,4,9,8, and Lift Station 1 $92,000 $92,000
Water Treatment Plant Redundant Water Main Connection $1,497,000 $1,497,000
Park Lighting Project $50,000 $50,000
Parks Improvement Program $200,000 $200,000
City Public Art $50,000 $50,000
Portable Generator Connections at East and West Fire Stations $100,000 $100,000
Facility Capital Improvement Program $325,310 $325,310
2027 Subtotal $1,090,000 $2,912,000 $5,155,000 $1,340,000 $1,717,000 $4,079,000 $60,000 $1,094,310 $2,400,000 $19,847,310NOTES:(A) This project, originally programmed for 2028, was combined and advanced to 2027 after the City successfully secured a pedestrian safety grant.
Page | 1Page 183 of 213
Capital Improvement Program
2026 - 2035
Special Street MSA Storm Drainage Sanitary Sewer Water Street Light Capital Projects Outside Total Project
Project Assessments Reconst. Fund Fund Utility Utility Utility Utility Funds Funds Cost
2028
Orchard Lane South Area Improvements $1,370,000 $4,250,000 $1,900,000 $340,000 $860,000 $8,720,000
Humboldt Avenue Improvements (69th to 73rd)$140,000 $590,000 $330,000 $500,000 $260,000 $1,820,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Water Treatment Plant HSP No. 2 Rehab $50,000 $50,000
Parks Improvement Program $200,000 $200,000
Emergency Responder Radio Replacement (Police/Fire) $500,000 $500,000
Facility Capital Improvement Program $159,200 $159,200
2028 Subtotal $1,510,000 $4,840,000 $2,230,000 $840,000 $1,170,000 $1,009,200 $11,599,200
NOTES:
2029
Highway 252/I-94 MnDOT Project $100,000 $780,000 $310,000 $140,000 $20,000 $170,000 $20,000 $29,500,000 (A)$31,040,000
Meadowlark Gardens Area Improvements $590,000 $1,630,000 $710,000 $140,000 $480,000 $30,000 $3,580,000
68th Avenue and Lee Avenue Improvements $330,000 $150,000 $140,000 $210,000 $170,000 $10,000 $1,010,000
Traffic Calming Program $100,000 $100,000
Retaining Wall Replacement (miscellaneous locations)$132,000 $132,000
Hazardous Tree Management and Reforestation $150,000 $150,000
2029 Storm Water Ponds Rehab $125,000 $125,000
Well Nos. 4 (VFD) and 9 (Including RTU, Switchgear, and Unit Heater) and Water Treatment Plant
HSP No. 4 Rehab $417,000 $417,000
Freeway and Highway Utility Crossing Replacement $633,000 $602,000 $1,235,000
Traffic Sig Sys Rehab (Shingle Creek Pkwy/Summit) - (Include strategic improvements such as
transition from loops, EVP, and modern cabinet)$188,000 $565,000 $753,000
Traffic Sig Sys Rehab. (Shingle Crk Pkwy/Brookdale Sq) - (Include strategic improvements such as
transition from loops, EVP, and modern cabinet)$249,000 $505,000 $754,000
Responder Radio Replacement (Public Works) $100,000 $100,000
Parks Improvement Program $200,000 $200,000
Facility Capital Improvement Program $512,453 $512,453
2029 Subtotal $1,020,000 $3,097,000 $1,380,000 $1,115,000 $1,003,000 $1,839,000 $60,000 $1,094,453 $29,500,000 $40,108,453
NOTES:(A) Provisional project. Funding estimated outside source ($29,500,000) and City Capital Improvements Fund ($5,500,000)
2030
St. Alphonsus Area Improvements $290,000 $1,070,000 $380,000 $50,000 $440,000 $2,230,000
Garden City North Area Mill and Overlay $540,000 $3,130,000 $3,060,000 $900,000 $740,000 $8,370,000
Garden City Central Area Mill and Overlay $460,000 $3,050,000 $1,520,000 $440,000 $120,000 $5,590,000
West Fire Station Parking Lot Mill and Overlay (With Garden City Project)$127,409 $127,409
Hazardous Tree Management and Reforestation $150,000 $150,000
Sanitary Sewer Lining (Miss. River Trunk N. of I-694 to 70th/Willow)$1,725,000 $1,725,000
Well Nos. 6 (Including Enclosure, HVAC, and Plumbing) and 8 (Including Switchgear and VFD) ;
Water Treatment Plant HSP No. 2 Rehab $387,000 $387,000
Public Works Grarage Reconstruction Project $10,000,000 $35,000,000 $45,000,000
Golf Course Bridge Repairs (North, Middle, and South)$200,000 $200,000
Parks Improvement Program $200,000 $200,000
City Public Art $50,000 $50,000
Facility Capital Improvement Program $711,375 $711,375
2030 Subtotal $1,290,000 $7,377,409 $4,960,000 $3,115,000 $1,687,000 $11,311,375 $35,000,000 $64,740,784
NOTES:
Page | 2Page 184 of 213
Capital Improvement Program
2026 - 2035
Special Street MSA Storm Drainage Sanitary Sewer Water Street Light Capital Projects Outside Total Project
Project Assessments Reconst. Fund Fund Utility Utility Utility Utility Funds Funds Cost
2031
Garden City South Mill and Overlay $80,000 $2,550,000 $1,470,000 $530,000 $1,460,000 $6,090,000
73rd Ave N Improvements (Humboldt to TH252)$120,000 $860,000 $190,000 $190,000 $20,000 $290,000 (A)$1,670,000
73rd Ave N Improvements (Penn to Humboldt)$100,000 $700,000 $230,000 $70,000 $420,000 (B)$1,520,000
69th Ave and Shingle Creek Pkwy Improvements $1,500,000 $4,680,000 $350,000 $110,000 $10,000 $6,650,000
69th Avenue Landscape Rehabilitation $90,656 $90,656
Traffic Calming Program $100,000 $100,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Storm Water Pond 57-004, 57-005 & 70-002 Rehab $77,000 $77,000
Lift Station No. 1 Generator Replacement $236,000 $236,000
Well No. 3 (Including VFD) and Water Treatment Plant HSP BW Rehab $270,000 $270,000
Parks Improvement Program $225,000 $225,000
Facility Capital Improvement Program $625,000 $625,000
2031 Subtotal $1,800,000 $4,300,656 $4,680,000 $2,317,000 $1,136,000 $2,170,000 $10,000 $1,000,000 $290,000 $17,703,656
NOTES:(A) 50% Cost sharing of street & storm with City of Brooklyn Park ($295k) per 1999 agreement
(B) 50% Cost sharing of street & storm with City of Brooklyn Park ($285k) per 2004 agreement
2032
Earle Brown Drive Area Improvements $800,000 $1,810,000 $210,000 $20,000 $320,000 $1,410,000 $4,570,000
Shingle Creek Pkwy and Xerxes Ave Mill and Overlay $810,000 $1,330,000 $440,000 $40,000 $580,000 $100,000 $1,290,000 $4,590,000
Xerxes Mill and Overlay (Northway to 694)$80,000 $510,000 $900,000 $140,000 $40,000 $870,000 $2,540,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Brooklyn Blvd Street Light Replacement (65th to BP Border)$1,019,000 $1,019,000
Storm Water Pond 12-002, 12-003, 12-004, 12-005 & 18-001 Rehab $730,000 $730,000
Well No. 5 and 11 and Water Treatment Plant HSP No. 1 Rehab $260,000 $260,000
Parks Improvement Program $300,000 $300,000
Facility Capital Improvement Program $570,019 $570,019
2032 Subtotal $1,690,000 $3,650,000 $900,000 $1,520,000 $100,000 $2,030,000 $1,119,000 $1,020,019 $2,700,000 $14,729,019
NOTES:
Page | 3Page 185 of 213
Capital Improvement Program
2026 - 2035
Special Street MSA Storm Drainage Sanitary Sewer Water Street Light Capital Projects Outside Total Project
Project Assessments Reconst. Fund Fund Utility Utility Utility Utility Funds Funds Cost
2033
Southwest Area Mill and Overlay $620,000 $1,670,000 $1,530,000 $1,500,000 $590,000 $2,890,000 $10,000 $8,810,000
Happy Hollow Mill and Overlay $330,000 $1,410,000 $390,000 $1,120,000 $230,000 $460,000 $3,940,000
Stormwater Structure Sediment Managment Project $200,000 $200,000
Traffic Calming Program $100,000 $100,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Well No. 10 (Including VFD) and Water Treatment Plant HSP No. 2 Rehab $155,000 $155,000
Parks Improvement Program $200,000 $200,000
City Public Art $50,000 $50,000
Self Contained Breathing Apparatus (SCBA) Replacement (Fire)$500,000 $500,000
Facilty Capital Improvement Program $195,906 $195,906
2033 Subtotal $950,000 $3,180,000 $1,920,000 $2,820,000 $820,000 $3,505,000 $10,000 $1,095,906 $14,300,906
NOTES:
2034
Southeast Alleys Improvements $1,520,000 $120,000 $10,000 $1,650,000
Centerbrook Area Mill and Overlay $300,000 $1,500,000 $810,000 $90,000 $60,000 $70,000 $2,830,000
Water Treatment Plant HSP No. 4 $142,000 $142,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Parks Improvement Program $200,000 $200,000
Facility Capital Improvement Program $661,089 $661,089
2034 Subtotal $300,000 $3,020,000 $930,000 $90,000 $202,000 $80,000 $1,011,089 $5,633,089
NOTES:
2035
Northport Area Improvements $390,000 $2,460,000 $1,410,000 $900,000 $140,000 $80,000 $5,380,000
69th Ave (CSAH 130) Reconstruction (Unity to Brooklyn Blvd)$40,000 $6,550,000 $730,000 $950,000 $1,160,000 $10,000 $5,465,000 $14,905,000
Lions Park South Mill and Overlay $420,000 $1,910,000 $1,100,000 $130,000 $3,570,000 $80,000 $7,210,000
Traffic Calming Program $100,000 $100,000
Traffic Sig Sys Rehab.(Freeway Blvd and 65th) - (Include strategic improvements such as transition
from loops, EVP, and modern cabinet)$800,000 $800,000
City Public Art $50,000 $50,000
Hazardous Tree Management and Reforestation $150,000 $150,000
Parks Improvement Program $200,000 $200,000
Facility Capital Improvement Program $599,837 $599,837
Emergency Outdoor Warning Sirens (2040)$160,000 $160,000
2035 Subtotal $850,000 $5,270,000 $7,960,000 $2,730,000 $1,220,000 $4,810,000 $90,000 $1,159,837 $5,465,000 $29,554,837
NOTES:
TOTALS $11,120,000 $38,244,065 $23,002,000 $20,959,500 $10,843,000 $22,175,500 $1,877,000 $21,076,298 $78,267,000 $227,564,363
Page | 4Page 186 of 213
Capital Improvement Plan 2026 –2035
City Council/Financial Commission Joint Work Session, July 21, 2025
Angela Holm, Finance Director, Elizabeth Heyman, Public Works Director, Kory Andersen Wagner, Public Works PlannerPage 187 of 213
What is the CIP?
•Capital Improvement Plan (CIP)
•Plan for major capital investments over the next 10 years
•Developed by prioritizing a list of capital projects based on need, funding
opportunities, and operations capacity
•Change is expected
•Focus on the first 2-3 years
•2026 projects will be appropriated in the 2026 budget
2
Everything
needs
maintenance!
Page 188 of 213
What is the CIP?
•Types of Projects
•Street Improvements
•Public Utilities – water, sewer, etc.
•Park & Trail Improvements
•Facilities Improvements
•Flooding mitigation
•Various Funding Sources
•Utility fees, special assessments, franchise fees, State Aid, a portion of Local
Government Aid, grants
3Page 189 of 213
CIP Themes
•Tackling much needed building maintenance
•Strategic investments in our parks
•Critical investments in our water, storm, and sanitary systems
•Setting up for future grant opportunities
•Continuing our ongoing investments in street and utility infrastructure
4Page 190 of 213
CIP Grant Strategy
•Leverage capital funding as grant matching dollars
•Multiple successes with this strategy
•Humboldt and 65th Ave Area Improvements Project: $2,000,000
•Pour in Place Playground Surface: $100,000
•Important to use placeholder projects in out years
•Upcoming
•East and West Palmer Park Flood Mitigation
5Page 191 of 213
Street Project Prioritization
•Right fix at the right time
•Driven by pavement ratings
•Age of utilities
•Another layer
•Documenting speeds and traffic volume
before projects
6Page 192 of 213
Street Projects
7
•Investments in street and
utility infrastructure
•Large street projects
•2026: Humboldt Ave (53rd to
57th) - County
•2026: John Martin Drive
•2027: Humboldt & 65th Area
•2027/2028: Orchard N/S
•2028: Humboldt Ave (69th to
73rd )
Page 193 of 213
Hennepin County Street Project
8
2026: Humboldt Avenue (CR 57) Reconstruction
•Last reconstructed in 1930
•One of the few remaining rural county roadways in the metro
•Based on county cost share policy, we are contributing approx.
$1.5 M
•The maintenance agreement will be negotiated
Page 194 of 213
Humboldt and 65th Area
9
•2027 Construction
•$2M MetCouncil Regional Soliciation
Grant
•BCCS partnership
•Goal(s): improve roadway safety,
calm traffic, make it easier for
students to walk and bike to school,
and reduce future city maintenance
costs
•BC’s first roundabouts!
Page 195 of 213
Cost Share Challenges
10
•Hennepin County and MnDOT cost
share expectations for upcoming
roadway projects with uncertain
timelines
•69th Avenue (Brooklyn Blvd to
Brooklyn Park border)
•MN 252
•May force us to move projects
•Cost share reform in progress at the
local and state level
Page 196 of 213
Community Center and Public Works Garage
•Community Center Upgrades
•$3.5 - $4M in deferred maintenance
•$5.1M in state funding
•Public Works Garage Placeholder: 2030
•$3.5M in deferred maintenance
•$1.5M funded to start design and engineering
•Exploring funding options
11Page 197 of 213
Major Utility Projects: Next 2 Years
12
Project Year Project Estimate
Well No. 11: Well and Pumphouse 2024/2025 $3.0M - Entirely water utility
Humboldt Avenue (CR 57)
Reconstruction (53rd to 57th)2026 $4.4M ($0.8M in storm, sanitary, and water)
Humboldt Avenue and 65th
Avenue Area Improvements 2027 $9.6M ($2.3M in storm, sanitary, and water)
Orchard Lane North Area
Improvements 2027 $3.9M ($1.5M in storm, sanitary, and water)
Water Treatment Plant Redundant
Water Main Connection 2027 $1.5M - Entirely water utility
Page 198 of 213
Traffic Calming
•$100,000 every other year starting
in 2025 for permanent projects
•Allows the city to make
improvements faster
•Newton Ave
•Four permanent speed tables
•Grandview Neighborhood
•Upcoming pilot Summer 2025
13Page 199 of 213
Facility Capital Improvement Program
•2023 Facilities Assessment
•Recent fixes: Police HVAC / plumbing;
new City Hall elevator
•In progress: West Fire roof, Police
generator, building concrete repair
•Next step:
•Implement asset-management
software to prioritize preventive work
and stretch asset life
14Page 200 of 213
Park Capital Plan
•Park Capital Investment Plan Completed Spring 2025
•2025 Projects
•Pour in Place at six parks (HC grant)
•Evergreen Park Building Repairs
•Amphitheater Repair
•Firehouse Softball Field Irrigation
•$200,000 in 2026
•Scoping projects
•Identifying CIP projects that can be leveraged with grants
•Longer Term
•Beginning work on Centennial Park Pond restoration and surrounding areas and opportunity for a splash pad
•East and West Palmer Park Flood mitigation
15Page 201 of 213
Financial Highlights of Proposed
CIP•No bonding is anticipated for 2026 Capital Improvement Projects
•Capital Funds maintain positive cash flow and sufficient ending
balances
•Capital Funds “self-finance” some components of the proposed
projects
•External funding sources are noted as applicable
•Funding model is appropriation based – meaning the appropriation is
based on the project, not the specific funding year
16Page 202 of 213
Capital Projects Fund
•The Capital Projects Fund can be referred to as the “Everything Else
Capital Fund”
•Primary funding source is 50% of the Local Government Aid
appropriated by the State Legislature each year
•Is also used as a “pass-through” fund for capital improvement grants
•Fund does not have operating expenses
17Page 203 of 213
Capital Projects Fund Cash Flow
18
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Capital Improvements Fund
City Funded Capital Outlay External Funded Capital Outlay Cash Balance - Ending
Page 204 of 213
Special Assessments Fund
•The Special Assessments Fund accounts for resources and
expenditures that are financed wholly or in part by special
assessments levied against benefitted properties
•Special Assessment revenue is often collected over a ten-year period
•Assessment revenues are projected in this fund with the assumption
that 25% of a new assessment will be collected in the first year
•Expenditures that will be funded by bonds are placeholders in this
fund until the bond is issued
•Other capital activities that do not require bonding are exclusive to
this fund
19Page 205 of 213
Special Assessments Fund Cash
Flow
20
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Special Assessments Reconstruction Fund
Expenditures Cash Balance - Ending
Page 206 of 213
Street Reconstruction Fund
•The Street Reconstruction Fund accounts for resources and
expenditures for major street infrastructure improvements
•Ongoing maintenance activities are not included in this fund
•Primary sources of funding are franchise fees collected from
CenterPoint and Xcel Energy
•Purpose of this fund is to accumulate resources to reduce need for
debt issuance
•Improvements funded by issuance of bonds require debt service
property tax levies
21Page 207 of 213
Street Reconstruction Fund Cash
Flow
22
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Street Reconstruction Fund
Expenditures Cash Balance - Ending
Page 208 of 213
Municipal State Aid Fund
•Authorized by the Minnesota Legislature in 1957
•Provides annual maintenance allocation and annual construction
allocation
•Construction funds are tied to specific projects that must be approved
by MNDOT
•Projects reimbursed over time via an annual allocation
•Construction funding can lag years behind completion of projects in
some cases (advances may be allowed)
23Page 209 of 213
MSA Fund Cash Flow
24
(6,000,000)
(4,000,000)
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
MSA Fund
Expenditures Cash Balance - Ending
Page 210 of 213
Utility Funds Capital Improvements
•Many large street projects have utility components that need to be
funded by the respective utility fund
•Utility infrastructure ages and needs to be rehabilitated/replaced
•Large utility projects require sufficient funding to fully fund the
project, or continued revenues to support debt service payments
•As Enterprise funds, the primary revenue source is fees for service
•Utility Fund budgets and proposed rates will be presented in greater
detail at the Council/Commission meeting on October 20, 2025
25Page 211 of 213
Water Fund Cash Flow
26
(5,000,000)
-
5,000,000
10,000,000
15,000,000
20,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Capital outlay Cash Balance - Ending Minimum Targeted Balance*
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Questions?
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