HomeMy WebLinkAboutACFR-2024
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
13
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
-
General Employees Retirement Fund 90
-
General Employees Retirement Fund 90
Notes to the Required Supplementary Information - General Employees Retirement Fund 91
-
Public Employees Police and Fire Fund 93
-
Public Employees Police and Fire Fund 93
Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 94
96
Notes to the Required Supplementary Information - Fire Relief Association 93
98
Schedule of 99
Notes to the Required Supplementary Information - Total OPEB Liability and Related Ratios 99
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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 102
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 103
Nonmajor Special Revenue Funds
Combining Balance Sheet 104
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 106
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget to Actual
Housing and Redevelopment Authority 108
Economic Development Authority 109
Centerbrook Golf Course 110
Tax Increment District No. 5 111
Tax Increment District No. 6 112
Tax Increment District No. 7 113
Nonmajor Capital Project Funds
Combining Balance Sheet 114
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 115
General Fund
Comparative Balance Sheets 117
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 118
Debt Service Funds
Combining Balance Sheet 122
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 124
Nonmajor Proprietary Funds
Combining Statement of Net Position 126
Combining Statement of Revenues, Expenses and Changes in Net Position 127
Combining Statement of Cash Flows 128
Internal Service Funds
Combining Statement of Net Position 129
Combining Statement of Revenues, Expenses and Changes in Net Position 130
Combining Statement of Cash Flows 131
Summary Financial Report
Revenue and Expenditures for General Operations - Governmental Funds 132
Other Required Reports
Independent Report on
Minnesota Legal Compliance 135
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 136
For Each Major Federal Program and Report on
Internal Control Over Compliance Required
By the Uniform Guidance 138
Schedule of Expenditures of Federal Awards 140
Notes to the Schedule of Expenditures of Federal Awards 141
Schedule of Findings, Responses and Questioned Costs 142
Corrective Action Plan 143
145
Schedule of Prior Year Findings
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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
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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
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
Audit of the Financial Statements section of our report. We are required to be independent of the Cityand 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
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
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 theamounts 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
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 theCity
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
Analysis starting on page 17
,
Related Ratios, the Schedule of Changes in the City's OPEB Liability and Related Ratios and the related note disclosures
starting on page 9be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in accordance
with auditing standards generally accepted in the United States of America, which consisted of inquiries of management
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
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 applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial 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
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 , on our
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solelyto
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the
Abdo
Mankato, Minnesota
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As management of the City of Brooklyn Center
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
and creditors.
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 the General fund having favorable budget variances and street
reconstruction revenue related to unspent bond proceeds. The total of assigned and unassigned as shown in the
cretion.
The unassigned fund balance in the General fund as shown in the financial analysis of the C
increased from prior year.
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
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---type activities
columns of said statements.
Figure 1
Required Components of the
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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 Governmental Funds Proprietary Funds
Statements
Scope Entire City government The activities of the City Activities the City
(except fiduciary funds) that are not proprietary or operates similar to private
fiduciary, such as police, businesses, such as the
units fire and parks water and sewer system
Required financial
Statement of Net Balance Sheet Statement of Net
statements
Position Position
Statement of
Statement of Activities Revenues, Statement of
Expenditures, and Revenues, Expenses
Changes in Fund and Changes in Net
Balances Position
Statement of Cash
Flows
Accounting basis and Accrual accounting and Modified accrual Accrual accounting and
measurement focus economic resources focus accounting and current economic resources focus
financial resources focus
Type of asset/liability All assets and liabilities, Only assets expected to All assets and liabilities,
information both financial and capital, be used up and liabilities both financial and capital,
and short-term and long-that come due during the and short-term and long-
term year or soon thereafter; no term
capital assets included
Type of deferred All deferred Only deferred outflows of All deferred
outflows/inflows of outflows/inflows of resources expected to be outflows/inflows of
resources information resources, regardless of used up and deferred resources, regardless of
when cash is received or inflows of resources that when cash is received or
paid. come due during the year paid
or soon thereafter; no
capital assets included
Type of in flow/out flow All revenues and expenses Revenues for which cash All revenues and expenses
information during year, regardless of is received during or soon during the year, regardless
when cash is received or after the end of the year; of when cash is received
paid expenditures when goods or paid
or services have been
received and payment is
due during the year or
soon thereafter
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with
-sector business.
The statement of net position 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.
19
The statement of activities 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.
Hpwfsonfoubm!Gvoet. 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
-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
-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. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the
General fund, Tax Increment District No. 3, Special Assessment Construction and Street Construction, 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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Qspqsjfubsz!Gvoet. 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
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 statements 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
benefits and other post-employment benefits to its employees. Required supplementary information can be found on
page 9 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 10 of this report.
Government-wide Financial Analysis
As noted earlier, net position
the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of
the most recent fiscal year.
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
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 CenterSummary of Net Position
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20242023(Decrease)20242023(Decrease)
Assets
Current and other assets$ 80,519,256 $ 76,230,552 $ 4,288,704$ 21,171,106 $ 18,566,682 $ 2,604,424
Capital assets 77,150,752 75,481,430 1,669,322 79,525,412 79,953,078 (427,666)
Total Assets 157,670,008 151,711,982 5,958,026 100,696,518 98,519,760 2,176,758
Deferred outflows of resources11,401,709 13,141,330 (1,739,621) - - -
Liabilities
Noncurrent liabilities 36,334,481 35,804,829 529,652 38,485,497 36,725,534 1,759,963
Other liabilities 4,727,004 5,387,970 (660,966) 1,789,935 2,142,658 (352,723)
Total Liabilities 41,061,485 41,192,799 (131,314) 40,275,432 38,868,192 1,407,240
Deferred inflows of resources 13,036,986 13,179,664 (142,678) 4,117,627 4,510,759 (393,132)
Net Position
Net investment in
capital assets 56,310,500 58,550,019 (2,239,519) 43,991,642 43,008,038 983,604
Restricted 39,022,621 38,549,514 473,107 - - -
Unrestricted 19,640,125 13,381,316 6,258,809 12,311,817 12,132,771 179,046
Total Net Position$ 114,973,246$ 110,480,849$ 4,492,397$ 56,303,459 $ 55,140,809 $ 1,162,650
Net Position as a Percent of Total
Net investment in capital assets 49.0% 53.0% 78.1% 78.0%
Restricted 33.9 34.9 - -
Unrestricted 17.1 12.1 21.9 22.0
Total Net Position 100.0% 100.0% 100.0% 100.0%
net position represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position
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.
increase are as follows:
City of Brooklyn CenterChanges in Net Position
Governmental ActivitiesBusiness-type Activities
IncreaseIncrease
20242023(Decrease)20242023(Decrease)
Revenues
Program Revenues
Charges for services$ 4,888,913$ 2,536,548$ 2,352,365$ 24,766,364 $ 23,632,778 $ 1,133,586
Operating grants and
contributions 3,346,152 3,795,705 (449,553) - 253,788 (253,788)
Capital grants and
contributions 1,796,145 1,201,521 594,624 - 196,344 (196,344)
General Revenues
Property taxes 24,772,104 23,100,876 1,671,228 - --
Tax increments994,856 1,050,058 (55,202) - --
Franchise taxes673,702 561,179 112,523
Lodging taxes887,205 898,037 (10,832) - --
Grants and contributions not
restricted to specific programs 4,527,188 3,296,142 1,231,046 - --
Unrestricted
investment earnings (loss) 1,927,953 1,788,433 139,520 530,854 528,438 2,416
Other745,434 400,535 344,899 - --
Gain on sale
of capital assets450,000 194,701 255,299 - --
Total Revenues 45,009,652 38,823,735 6,185,917 25,297,218 24,611,348685,870
Expenses
General government 6,630,482 6,530,570 99,912 - --
Public safety 15,636,027 15,349,585286,442 - --
Public works 6,699,207 6,292,303 406,904 - --
Community services131,795 180,657 (48,862) - --
Park and
recreation 6,080,633 5,853,004 227,629 - --
Economic development 3,142,800 2,954,501 188,299 - --
Interest on long-term debt429,192 395,747 33,445 - --
Municipal liquor- - - 6,641,783 6,773,467 (131,684)
Heritage Center of Brooklyn Center- - - 4,729,005 4,545,057183,948
Water utility- - - 5,132,621 4,940,861191,760
Sanitary sewer utility- - - 5,716,940 5,326,043390,897
Storm drainage utility- - - 2,507,631 2,522,856 (15,225)
Street light utility- - - 545,074 653,176 (108,102)
Recycling utility- - - 628,633 537,993 90,640
-
Total Expenses 38,750,136 37,556,367 1,193,769 25,901,687 25,299,453602,234
Increase (Decrease) in Net Position
Before Contributions 6,259,516 1,267,368 4,992,148 (604,469) (688,105) 83,636
Capital Contributions (1,767,119)- (1,767,119) 1,767,119 -1,767,119
Change in Net Position 4,492,397 1,267,368 3,225,029 1,162,650 (688,105) 1,850,755
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$ 114,973,246$ 110,480,849$ 4,492,397$ 56,303,459 $ 55,140,809 $ 1,162,650
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.
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The following graphs depict various governmental activities and show the revenue and expenses directly related to those
activities.
Expenses and Program Revenues -Governmental Activities
Revenuesby Source -Governmental Activities
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Business-type Activities. Business-
position table. Key elements of this decrease are as follows:
Charges for services increased by $967,168due to an increase in usage and utility rates.
Due to inflationary pressures, all business-relatedexpenses trended upward, resulting in an increase of
$1,178,290from the prior year.
Expenses and Program Revenues-Business-type Activities
Revenuesby Source-Business-type Activities
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Financial Analysis of the City
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
available for spending at the end of the year.
Hpwfsonfoubm!Gvoet governmental funds is to provide information on near-term inflows, outflows
and balances of spendable
particular, unassigned fund balance
spending at the end of the fiscal year. The table below outlines the governmental fund balances for the year ending
December 31, 2024.
49 of this report.
The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General
fund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is
shown in the chart below along with total fund balance as a percent of total expenditures.
variances that occurred in the General fund from its budget are noted below in the General Fund Budgetary Highlights.
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Other major governmental fund analysis is shown below:
Qspqsjfubsz!Gvoet/ -wide
General Fund Budgetary Highlights
Final
BudgetedActualVariance with
AmountsAmountsFinal Budget
Revenues$ 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 $494,735, expenditures were under budget by $817,618 and the other financing sources
(uses) were under budget by $162,218, causing fund balance to increase by $1,150,135 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. -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 -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
th
Costs related to the 65 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 $347,048
n be found in Note 3C starting on page 63 of this report.
City of Brooklyn CenterCapital Assets
(Net of Depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
IncreaseIncrease
20242023(Decrease)20242023(Decrease)20242023
Land$ 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 5,602,464 2,103,427 3,499,037 5,385,944 971,078 4,414,866 10,988,408 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 Improvements5,940,866 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$ 77,150,752 $ 75,481,430 $ 1,669,322$ 79,525,412 $ 79,953,078 $ 4,433,002$ 156,676,164$ 155,434,508
28
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 CenterOutstanding Debt
increased by $6,183,274 (approximately 10.6
2024 issues.
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 Additional
-term debt can be found in Note 3E starting on page 66 of this report.
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 Development Agreement with
Alatus, LLC as the master developer of this site. In May 2018, the site was federally designated as an Opportunity
Zone. The preliminary development concept proposed involves the construction of a mixed-use
apartment/hotel/commercial/single-family development together with related improvements including a
centralized park area, new roads and storm water ponding improvements.
5 fiscal year.
-
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 2024 was $14,555,855, or 49.4% of the adopted 2024 budgeted expenditures.
Requests for Information
information should be addressed to the Finance Director, City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota 55430.
29
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30
GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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32
City of Brooklyn Center, Minnesota
Statement of Net Position
December 31, 2024
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets
Cash and investments$ 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 4,853,457 881,005 5,734,462
Intergovernmental 641,974 93,744 735,718
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 11,562,241 8,095,108 19,657,349
Depreciable 65,588,511 71,430,304 137,018,815
Net pension asset 373,575 - 373,575
Total Assets 157,670,008 100,696,518 258,366,526
Deferred Outflows of Resources
Deferred pension resources 9,220,398 - 9,220,398
Deferred other postemployment benefit resources 2,181,311 - 2,181,311
Total Deferred Outflows of Resources 11,401,709 - 11,401,709
Liabilities
Accounts payable 700,062 500,022 1,200,084
Contracts payable 714,326 245,599 959,925
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 1,180,866 89,188 1,270,054
Noncurrent liabilities
Due within one year
Long-term liabilities 3,248,356 4,192,684 7,441,040
Other postemployment benefits liability 233,799 - 233,799
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
Other postemployment benefits liability 3,779,571 - 3,779,571
Total Liabilities 41,061,485 40,275,432 81,336,917
Deferred Inflows of Resources
Deferred pension resources 11,864,619 - 11,864,619
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 13,036,986 4,117,627 17,154,613
Net Position
Net investment in capital assets 56,310,500 43,991,642 100,302,142
Restricted
Tax increment financing 24,379,706 - 24,379,706
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 5,501,467 - 5,501,467
Fire relief pension 373,575 - 373,575
Unrestricted 19,640,125 12,311,817 31,951,942
Total Net Position$ 114,973,246 $ 56,303,459$ 171,276,705
The notes to the financial statements are an integral part of this statement.
33
City of Brooklyn Center, Minnesota
Statement of Activities
For the Year Ended December 31, 2024
Program Revenues
Operating Capital
Charges forGrants andGrants and
Functions/ProgramsExpensesServicesContributionsContributions
Governmental Activities
General government$ 6,630,482$ 2,346,420$ 107,234$ -
Public safety 15,636,027 1,003,116 880,734 -
Public works 6,699,207 18,205 1,877,729 1,796,145
Community services 131,795 - - -
Parks and recreation 6,080,633 878,602 79,594 -
Economic development 3,142,800 642,570 400,861 -
Interest on long-term debt 429,192 - - -
Total Governmental Activities 38,750,136 4,888,913 3,346,152 1,796,145
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 2,507,631 2,105,576 - -
Street light utility 545,074 570,815 - -
Recycling utility 628,633 555,504 - -
Total Business-type Activities 25,901,687 24,766,364 - -
Total $ 64,651,823 $ 29,655,277 $ 3,346,152$ 1,796,145
General Revenues
Property taxes, levied for general purposes
Property taxes, levied for debt service
Tax increments
Franchise taxes
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
The notes to the financial statements are an integral part of this statement.
34
Net (Expense) Revenue and
Changes in Net Position
GovernmentalBusiness-type
ActivitiesActivitiesTotal
$ (4,176,828)$ -$ (4,176,828)
(13,752,177) - (13,752,177)
(3,007,128) - (3,007,128)
(131,795) - (131,795)
(5,122,437) - (5,122,437)
(2,099,369) - (2,099,369)
(429,192) - (429,192)
(28,718,926) - (28,718,926)
- 81,986 81,986
- (451,219) (451,219)
- (160,624) (160,624)
- (156,023) (156,023)
- (402,055) (402,055)
- 25,741 25,741
- (73,129) (73,129)
- (1,135,323) (1,135,323)
(28,718,926) (1,135,323) (29,854,249)
22,953,248 - 22,953,248
1,818,856 - 1,818,856
994,856 - 994,856
673,702 - 673,702
887,205 - 887,205
4,527,188 - 4,527,188
1,927,953 530,854 2,458,807
745,434 - 745,434
450,000 - 450,000
(1,767,119) 1,767,119 -
33,211,323 2,297,973 35,509,296
4,492,397 1,162,650 5,655,047
110,480,849 55,140,809 165,621,658
$ 114,973,246$ 56,303,459 $ 171,276,705
The notes to the financial statements are an integral part of this statement.
35
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36
FUND FINANCIAL STATEMENTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
37
City of Brooklyn Center, Minnesota
Balance Sheet
Governmental Funds
December 31, 2024
(Formerly Nonmajor)
TaxSpecial(Formerly Nonmajor)Other
Increment AssessmentStreetNonmajor
GeneralDistrict No. 3ConstructionReconstructionGovernmentalTotal
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 358,880 - 2,175,444 - 2,319,133 4,853,457
Intergovernmental 29,203 - 10,306 - 584,361 623,870
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$ - $ - $ 163,251$ 613,548
Contracts payable - - 573,635 84,574 56,117 714,326
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 4,334 573,635 84,574 1,423,075 4,360,355
Deferred Inflows of Resources
Unavailable revenue
Taxes - - - - 5,994 5,994
Special assessments 358,880 - 2,175,444 - 2,319,133 4,853,457
Intergovernmental - - - - 515,920 515,920
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 - - - 79,493 269,592
Restricted - 20,961,704 - 7,770,393 16,871,671 45,603,768
Committed - - 442,735 - 2,083,782 2,526,517
Unassigned 14,555,855 - - - (947,724) 13,608,131
Total Fund Balances 14,745,954 20,961,704 442,735 7,770,393 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
The notes to the financial statements are an integral part of this statement.
38
City of Brooklyn Center, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2024
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.70,835,427
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 5,994
Special assessments receivable 4,853,457
Intergovernmental 515,920
Governmental funds do not report long-term amounts related to the
City's Fire Relief Association Pension Fund
Net pension asset 373,575
Deferred outflows of pension resources 499,518
Deferred inflows of pension resources (1,104)
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$ 114,973,246
The notes to the financial statements are an integral part of this statement.
39
City of Brooklyn Center, Minnesota
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2024
(Formerly
Nonmajor)
Tax(Formerly Major)Special
Increment DebtAssessment
GeneralDistrict No. 3ServiceConstruction
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 488,405 54,444 - -
Miscellaneous 284,538 7,470 - 5
Total Revenues 28,501,354 65,414 - 583,648
Expenditures
Current
General government 5,607,768 - - -
Public safety 14,884,269 - - -
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 safety - - - -
Public works - - - 780,128
Parks and recreation - - - -
Economic development 4,996 - - -
Debt service
Principal - - - -
Interest and other - - - -
Bond issuance costs - - - 16,537
Total Expenditures 29,073,606 709,556 - 796,665
Excess (Deficiency) of Revenues
Over (Under) Expenditures (572,252) (644,142) - (213,017)
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) - 1,241,300
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$ - $ 442,735
The notes to the financial statements are an integral part of this statement.
40
(Formerly Nonmajor)Other
StreetNonmajor
ReconstructionGovernmentalTotal
$ -$ 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 5,956,724
- 561,418 15,445,687
- 306,002 3,413,611
- - 131,795
- 1,408,788 5,610,160
- 1,785,829 3,122,648
- - 508,534
- 192,645 192,645
3,984,278 1,455,415 6,219,821
- 476,753 476,753
- - 4,996
- 2,623,796 2,623,796
- 543,761 543,761
45,638 - 62,175
4,029,916 9,703,363 44,313,106
(2,870,231) 648,119 (3,651,523)
- 1,214,234 1,338,226
- - 1,765,095
- - -
3,958,863 - 5,280,000
399,082 - 532,262
- (1,171,526) (1,338,226)
4,357,945 42,708 7,577,357
1,487,714 690,827 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
$ 7,770,393$ 18,087,222$ 62,008,008
The notes to the financial statements are an integral part of this statement.
41
City of Brooklyn Center, Minnesota
Reconciliation of the Statement of
Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
For the Year Ended December 31, 2024
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 6,868,677
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. (40,098)
Long-term pension activity related to the City's Fire Relief Association
Pension Fund is not reported in governmental funds. (177,933)
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 (75,463)
Tax increments (16,893)
Intergovernmental515,920
Special assessments 452,598
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$ 4,492,397
The notes to the financial statements are an integral part of this statement.
42
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
Budgeted Amounts
ActualVariance with
OriginalFinalAmountsFinal 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 5,607,768 394,437
Public safety 15,445,066 15,445,066 14,884,269 560,797
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
The notes to the financial statements are an integral part of this statement.
43
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
Budgeted Amounts
ActualVariance with
OriginalFinalAmountsFinal 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
The notes to the financial statements are an integral part of this statement.
44
City of Brooklyn Center, Minnesota
Statement of Net Position
Proprietary Funds
December 31, 2024
Business-type Activities - Enterprise Funds
Governmental
411 l 601602651 OtherActivities -
WaterSanitary SewerStorm DrainageEnterpriseInternal Service
UtilityUtilityUtilityFundsTotalFunds
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 879,077 1,928 - - 881,005 -
Leases 4,166,158 - - - 4,166,158 -
Intergovernmental 23,519 - - 70,225 93,744 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 1,593,171 - 5,385,944 110,000
Total capital assets 66,230,306 39,956,567 45,984,206 22,535,774 174,706,853 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 20,309,439 7,448,652 79,525,412 6,315,325
Total Assets 42,296,453 23,770,623 27,231,836 10,128,007 103,426,919 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 14,966,814 5,155,503 43,991,642 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 $ 20,953,540 $ 6,988,057$ 59,033,860 $ (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$ 56,303,459
The notes to the financial statements are an integral part of this statement.
45
City of Brooklyn Center, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities - Enterprise Funds
Governmental
411 l 601602651 OtherActivities -
WaterSanitary SewerStorm DrainageEnterpriseInternal Service
UtilityUtilityUtilityFundsTotalFunds
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 4,129,945 532,293 2,075,278 7,895,718 368,376
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 2,410,968 5,807,869 18,735,375 2,208,870
Operating Income (Loss) 79,414 (66,684) (305,392) (524,048) (816,710) 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) (202,660) (404,812) (771,987) 2,438,921
Capital Contributions From (to) Other Funds 950,090 412,694 404,335 - 1,767,119 -
Change in Net Position 814,291 383,978 201,675 (404,812) 995,132 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$ 20,953,540$ 6,988,057$ 59,033,860$ (4,696,648)
Change in net position
as shown above$ 995,132
Adjustment to reflect the
consolidation of internal service fund
activities related to enterprise funds. 167,518
Change in net position of business-type
activities.$ 1,162,650
The notes to the financial statements are an integral part of this statement.
46
City of Brooklyn Center, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities - Enterprise Funds
Governmental
411 l 601602651 OtherActivities -
WaterSanitary SewerStorm DrainageEnterpriseInternal Service
UtilityUtilityUtilityFundsTotalFunds
Cash Flows from Operating Activities
Receipts from customers and users$ 4,632,836 $ 5,449,155 $ 2,256,624 $ 11,952,899 $ 24,291,514 $ 3,262,139
Payments to suppliers (2,103,144) (4,186,603) (635,180) (9,604,102) (16,529,029) (1,016,632)
Payments to employees (792,689) (304,835) (393,469) (2,547,660) (4,038,653)(1,053,454)
Other operating receipts 142,556 - - 52,307 194,863 461,126
Net Cash Provided (Used) by Operating Activities 1,879,559 957,717 1,227,975 (146,556) 3,918,6951,653,179
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) (844,126) (38,825) (2,846,243)(2,159,933)
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) 70,116 (253,296) (1,711,047)(1,709,933)
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 10,843,5925,189,543
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) $ (305,392)$ (524,048) $ (816,710) $ 732,109
Adjustments to reconcile operating income to
net cash provided (used) by operating activities
Depreciation/amortization 1,989,268 1,116,576 1,464,622 470,562 5,041,0281,081,809
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 495 72,999 - (70,225) 3,269(18,104)
Special assessments (197,053) - - - (197,053)-
Prepaid items 2,772 (4,084) 4,559 6,857 10,104 4,682
Inventories 67,735 - - 81,133 148,8682,350
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)(25,212)
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$ 1,227,975 $ (146,556) $ 3,918,695$ 1,653,179
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$ -
The notes to the financial statements are an integral part of this statement.
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48
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December31, 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
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
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 financially 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-ng 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 inf
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
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.
49
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.
50
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
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
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
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.
51
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
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.
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.
4.
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.
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
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
2
and are valued using quoted market prices (Level 1 inputs).
52
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 regulator
this pool is valued at amortized cost, which approximates fair value. There are no restrictions 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
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
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 a
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 - 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
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.
ted 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.
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.
53
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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
(i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
-type
activities are reported in the government-
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
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.
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.
54
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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.
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:
AssetsYears
Temporary EasementsBased on Contract
Land Improvements25
Buildings and Structures25
Water and Sewer Mains and Lines, Wells and Storage Tanks, Sewer Lift Stations25
Infrastructure25
Street Light Systems15
Machinery and Equipment5 - 15
55
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 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
uciary net position have been determined on the same basis as they are reported by PERA
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:
Public Employees Retirement
Association of Minnesota (PERA)Single Employer
GERPPEPFPDCPFire ReliefTotal
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
56
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 the
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
-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.
57
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 the
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
-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.
58
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:
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:
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.
59
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
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
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
etter 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
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.
a $138,510 while the bank balance was $330,564.
60
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
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.
61
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 $26,189.
Lease Receivable
The City leases various tower sites to companies. These agreements contain various renewal and extension options. The
latest maturity date is projected to be in in 2039, however, the City anticipates new or revised leasing arrangements to
occur in the future. Additionally, the City has leased a portion of their building for a Logis Hot Site effective
January 1, 2022 for 48 months until December 31, 2025. Furthermore, the EDA has leased a building the Phu Bia Grocery
effective February 15, 2022 for monthly lease payments 120 months until January 15, 2032.
Long-term lease activity for the year ended December 31, 2024 was as follows:
Current YearBalance
Discount
IssueInflow ofat
DescriptionRate
DateResourcesYear End
Verizon Tower Lease 11/1/2022 2.71 %$ 62,805$ 946,687
AT&T Tower Lease 24/1/2022 2.71 61,967 704,446
Sprint Tower 11/1/2022 2.71 60,444 681,920
T-Mobile Tower 21/1/2022 2.71 58,153 144,624
T-Mobile Tower 31/1/2022 2.71 52,100 718,856
Verizon Tower Lease 21/1/2022 2.71 63,318 821,752
Zayo Group Tower 21/1/2022 2.71 15,700 109,800
Dish Wireless Tower Lease11/1/2022 5.43 3,023 38,075
Phu Bia Grocery Lease2/15/2022 2.71 39,777 434,289
Logis Hot Site Lease1/1/2022 2.22 11,494 11,494
Total$ 4,611,943
62
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:
BeginningEnding
BalanceIncreasesDecreasesBalance
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 4,161,570 (662,533) 5,602,464
Total Capital Assets
not Being Depreciated/Amortized 8,063,204 4,161,570 (662,533) 11,562,241
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$ 2,331,855 $ (662,533)$ 77,150,752
63
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
64
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:
Construction Commitments
The City has active construction projects as of December 31, 2024. The projects include street construction and various
public facilities
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.
65
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
Interfund Transfers
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 ($100,000) and
cash flow purposes for the Centerbrook Golf Course ($66,700).
From the ARPA fund interest earned to the nonmajor fund for cash flow purposes for the Centerbrook Golf Course
($93,571).
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($374,383).
From City Initiative Grants to General fund for ($123,992) for project costs.
E. General Long-term Debt
General Obligation Tax Increment Bonds
The following bonds were issued for redevelopment projects. The additional tax increments resulting from increased tax
capacity of redevelopment properties will be used to retire the related debt.
Balance
Interest
AuthorizedIssueMaturityat
DescriptionRate
and IssuedDateDateYear End
Governmental
G.O. Tax Increment Bonds of 2016B$ 2,075,000 2.00 - 2.50%12/08/1602/01/29$ 1,745,000
The annual debt service requirements to maturity for general obligation tax increment bonds are as follows:
General Obligation Tax Increment Bonds
Governmental Activities
Year Ending
December 31PrincipalInterestTotal
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
66
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.
The annual debt service requirements to maturity for general obligation special assessments bonds are as follows:
G.O. Special Assessment Bonds
Governmental Activities
Year Ending
December 31PrincipalInterestTotal
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
67
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Detailed Notes on all Funds (Continued)
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.
The annual debt service requirements to maturity for general obligation revenue bonds are as follows:
G.O. Revenue Bonds
Business-type Activities
Year Ending
December 31PrincipalInterest 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
68
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.
The annual debt service requirements to maturity for notes payable are as follows:
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
Interest
AuthorizedIssueMaturityat
DescriptionRate
and IssuedDateDateYear End
PFA Revenue Note of 2015$ 19,622,797 1.00 %01/20/1508/20/34$ 10,763,445
69
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
The annual debt service requirements to maturity for notes payable are as follows:
Annual revenues from charges for services, principal and interest payments, and percentage of revenue required to cover
principal and interest payments are as follows:
Leases Payable
The City leases golf carts for use at the Centerbrook Golf Course. Lease payments amount to $18,900 annually and will
mature on September 11, 2027 at a discount rate of 2.42 percent.
70
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Changes in Long-term Liabilities
Long-term liability activity for the year ended December 31, 2024, was as follows:
BeginningEndingDue Within
BalanceIncreasesDecreasesBalanceOne Year
Governmental Activities
Bonds Payable
General obligation
tax increment bonds$ 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 -
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
BeginningEndingDue Within
BalanceIncreasesDecreasesBalanceOne 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 2,007,777 563,801(275,634) 2,295,944 -
Total Bonds Payable 24,940,089 6,103,801 (3,321,838) 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 $ 6,103,801 $ (4,343,838)$ 38,485,497$ 4,192,684
7171
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
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
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:
Other
Tax
Governmental
Increment Street Street
GeneralFundsTotal
District No. 3ReconstructionReconstruction
Nonspendable
Inventories
$ 183,346$ -$ -$ -$ 3,694$ 187,040
Prepaid items
6,753 - - - 75,799 82,552
Total
$ 190,099$ -$ -$ -$ 79,493$ 269,592
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
- - - 7,770,393 4,985,547 12,755,940
Total
$ -$ 20,961,704 $ -$ 7,770,393$ 16,871,671 $ 45,603,768
Committed
Community prevention, health
and safety
$ -$ -$ -$ -$ 180,374$ 180,374
Technology improvements - - - - 433,121 433,121
- - 442,735 - 1,470,287 1,913,022
Capital projects
Total$ - $- $ 442,735 $ - $ 2,083,782 $ 2,526,517
Unassigned
$ 14,555,855 $ -$ -$ -$ (947,724) $ 13,608,131
72
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide
A.Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered
according to Minnesota Statutes chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes chapter 356 defines each
401(a) of the Internal Revenue Code.
General Employees Retirement Plan (General Plan)
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.
Public Employees Police and Fire Plan (Police and Fire Plan)
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
B.Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only
be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is
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 Employee Plan Benefits
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.
73
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
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.
Police and Fire Plan Benefits
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.
C.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 Employees Fund Contributions
General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the
Employees Fund for the years ending December 31, 2024, 2023 and 2022, were $833,711, $758,282 and $729,550,
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024
Police and Fire Fund for the years ending December 31, 2024, 2023 and, 2022 were $883,853, $869,104 and $734,786,
74
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
At December 31, 2024, the City reported a liability of $4,654,385 for its proportionate share of the General Employees
pension liability associated with the City totaled $120,353.
City's Proportionate Share of the Net Pension Liability$ 4,654,385
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 120,353
Total$ 4,774,738
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net
0.1231 percent for the beginning of the period.
For the year ended December 31, 2024, the City recognized pension expense of $513,793 for its proportionate share of
Employees Fund.
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 $214,145 for the year ended December 31, 2024 as
behalf contributions to the General Employees Fund.
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences Between Expected and Actual Economic Experience$ 434,833 $ -
Changes in Actuarial Assumptions22,562 1,733,011
Net Difference Between Projected and Actual Investment Earnings- 1,300,833
Changes in Proportion78,249 37,620
Contributions Paid to PERA Subsequent to the Measurement Date423,259 -
Total$ 958,903 $ 3,071,464
75
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
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
$ (1,408,129)
2026
(204,090)
2027
(566,869)
2028
(356,732)
Police and Fire Fund Pension Costs
net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to
employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received
measurement period and 0.3453 percent for the beginning of the period.
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
the City totaled $179,759.
City's Proportionate Share of the Net Pension Liability$ 4,715,655
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 179,759
Total$ 4,895,414
For the year ended December 31, 2024, the City recognized pension expense of $738,127 for its proportionate share of
Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the $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 $101,786 for the year ended December 31, 2024 as
behalf contributions to the Police and Fire Fund.
76
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Defined Benefit Pension Plans - Statewide (Continued)
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences Between Expected and Actual Economic Experience$ 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
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
$ (470,039)
2026
1,273,520
2027
(648,256)
2028
(1,738,043)
2029
108,668
E. Long-term Expected Return on Investment
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
TargetExpected Return
Asset ClassAllocationon 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 %
77
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 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
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.
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions
-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.
Changes in Plan Provisions
reflect the changes in assumptions.
78
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
-There were no changes in actuarial assumptions since the previous valuation.
Changes in Plan Provisions
-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 $9 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three
consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was
previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July
1, 2048 if earlier).
G.Discount Rate
The discount rate used to measure the total pension liability in 2024 was 7.0 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at rates set
in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and
Fire Plans were projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
H.Pension Liability Sensitivity
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
1 Percent1 Percent
Decrease (6.0%)Current (7.0%)Increase (8.0%)
General Employees Fund$ 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
report that includes financial statements and required supplementary information. That report may be obtained on the
Internet at www.mnpera.org.
79
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:
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.
Note 6: Defined Benefit Pension Plans - Fire Relief Association
A.Plan Description
All members of the City of Brooklyn Center
administered by the Brooklyn Center Fire Department Relief Association (the Association). As of December 31, 2023, the
plan covered 31 active firefighters, 13 inactive members, five retired/disabled firefighters and seven 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.
80
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Defined Benefit Pension Plans - Fire Relief Association (Continued)
B.Benefits Provided
Basic Service Pension for Retired Members
Upon retirement each individual will receive a lump sum distribution of $12,000 per year of service. This benefit level was
placed into effect on April 12, 2023. 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 $244,067 in fire state aid to the plan
on behalf of the Department for the year ended December 31, 2024 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.
81
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 $(373,575) 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:
For the year ended December 31, 2024, the City recognized pension expense of $245,067.
At December 31, 2024, the City reported its deferred outflows of resources and deferred inflows of resources to the plan
from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Changes in Actuarial Assumptions$ - $ 1,104
Liability Experience (Gains) and Losses 37,382 -
Net Difference Between Projected and Actual Earnings on Plan Investments 218,069 -
Changes in Proportion - -
Investment (Gains) and Losses - -
Contributions Paid to Plan Subsequent to the Measurement Date 244,067 -
Total$ 499,518 $ 1,104
82
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 $244,067
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:
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 Return4.75%, net of investment expense
Investment Rate of Return4.75%
Inflation Rate2.50%
Mortality
Pre-retirementPub-2010 Public Safety Employee mortality tables projected
with mortality improvement scale based on scale MP-2021.
Post-retirementPub-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-disabilityPub-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.
83
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 7: Postemployment Benefits Other Than Pensions
A. Plan Description
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
At December 31, 2024, the following employees were covered by the benefit terms:
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments18
Active Plan Members145
Total Plan Members163
B. Funding Policy
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.
C. Actuarial Methods and Assumptions
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:
Discount Rate3.77%
Expected Long-Term Investment ReturnN/A
20-Year Municipal Bond Yield3.77%
Inflation Rate2.60%
Salary IncreasesN/A
Medical Trend RateN/A
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.
84
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 7: Postemployment Benefits Other Than Pensions (Continued)
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.
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:
E. Sensitivity of the Net OPEB Liability
calculated using a discount rate one percentage point lower or one percentage point higher than the current discount
rate:
1 PercentDiscount Rate1 Percent
Decrease 2.77%Current 3.77%Increase 4.77%
$ 4,479,201$ 4,013,370$ 3,620,055
85
City of Brooklyn Center, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 7: Postemployment Benefits Other Than Pensions (Continued)
calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current
healthcare cost trend rate:
Healthcare Cost
1 Percent DecreaseTrend Rates1 Percent Increase
6.75% Decreasing 7.75% Decreasing 8.75% Decreasing
to 6.45%to 7.45%to 8.45%
$ 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
For the year ended December 31, 2024, the City Recognized OPEB expense of $150,425. At December 31, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
DeferredDeferred
OutflowsInflows
of Resourcesof Resources
Differences Between Expected and Actual Economic Experience$ 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
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:
2025
$ 184,738
2026
184,738
2027
178,368
2028
174,611
2029
165,311
Thereafter 452,255
86
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
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
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
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 govern
remaining bond issues is not determined at this time. However, in the opinion of management any such liability would be
immaterial.
87
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
ial 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 $1,014,482
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 $2,067,160. Complete financial statements
may be obtained from Gallagher Benefit Services, Inc. located at 3600 American Blvd West, Bloomington, MN 55431.
Note 10: Adjustments to Beginning Balances and Changes in Accounting Principle
Change within Major and Nonmajor Fund Reporting
During fiscal year 2024, the Special Assessment Construction and Street Reconstruction capital project funds were
determined to be major and the Debt Service fund was determined to be nonmajor. The effects of the changes within
the financial reporting entity are shown in applicable financial statement.
Change in Accounting Principle
During fiscal year 2024, the City adopted the provisions of the Governmental Accounting Standard Board (GASB)
Statement No. 100, Accounting Changes and Error Corrections, and Statements No. 101, Compensated Absences, for the
year ended December 31, 2024. Adoption of the provisions of these statement results in significant change to the
classifications of the components of the financial statements. There were no adjustments or restatements of beginning
balances needed for the adoption of these statements.
88
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
89
City of Brooklyn Center, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2024
City's
Proportionate
State's
Share of the
Proportionate
Net Pension
City'sShare of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sPercentage ofNet Position
Share ofLiabilityCity's
Proportion ofCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
the Net PensionPayrollof the Total
YearLiabilitythe CityTotalPayroll
Liability(a/c)Pension Liability
Ending(a)(b)(a+b)(c)
6/30/20240.1259%$ 4,654,385$ 120,353$4,774,738 $ 10,655,463 43.7%86.7%
6/30/20230.1231 6,883,614 189,767 7,073,381 10,176,093 67.683.1
6/30/20220.1250 9,900,041 290,31910,190,360 7,042,154 140.676.7
6/30/20210.1206 5,150,160 157,297 5,307,457 8,685,747 59.387.0
6/30/20200.1240 7,434,367 229,207 7,663,574 8,843,395 84.179.0
6/30/20190.1189 6,573,715 204,324 6,778,039 8,411,938 78.180.2
6/30/20180.1194 6,623,822 217,244 6,841,066 7,892,915 83.979.5
6/30/20170.1201 7,667,105 96,388 7,763,493 7,735,587 99.175.9
6/30/20160.1172 9,516,060 124,251 9,640,311 7,269,667 130.968.9
6/30/20150.1243 6,441,872- 6,441,872 7,303,595 88.278.2
Contributions in
Relation to theContributions as
StatutorilyStatutorilyContributionCity'sa Percentage of
RequiredRequiredDeficiencyCoveredCovered
YearContributionContribution(Excess)PayrollPayroll
Ending(a)(b)(a-b)(c)(b/c)
12/31/2024$ 833,711$ 833,711$ - $ 11,116,1477.50%
12/31/2023 758,282 758,282 - 10,110,4277.50
12/31/2022 727,505 727,505 - 9,700,0677.50
12/31/2021 673,181 673,181 - 8,977,5257.50
12/31/2020 649,561 649,561 - 8,660,8147.50
12/31/2019 651,633 651,633 - 8,688,3977.50
12/31/2018 612,983 612,983 - 8,173,3167.50
12/31/2017 572,442 572,442 - 7,634,2977.50
12/31/2016 550,846 550,846 - 7,344,6137.50
12/31/2015 564,168 564,168 - 7,522,2407.50
90
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
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.
91
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
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.
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.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar
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 $892 million. Upon consolidation, state and employer contributions
were revised.
92
City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
City's
Proportionate
State's
Share of the
Proportionate
Net Pension
City'sShare of
Liability as aPlan Fiduciary
Proportionatethe Net Pension
City'sPercentage ofNet Position
Share ofLiabilityCity's
Proportion ofCoveredas a Percentage
Fiscalthe Net PensionAssociated withCovered
the Net PensionPayrollof the Total
YearLiabilitythe CityTotalPayroll
Liability(a/c)Pension Liability
Ending(a)(b)(a+b)(c)
6/30/20240.3584%$ 4,715,655$ 179,759$4,895,414 $ 4,963,447 95.0%87.0%
6/30/20230.3453 5,962,882 240,183 6,203,065 4,693,362 127.086.5
6/30/20220.3429 2,646,825 126,416 2,773,241 4,151,333 63.870.5
6/30/20210.4161 3,211,851 144,394 3,356,245 5,100,055 63.093.7
6/30/20200.4405 5,806,261 136,792 5,943,053 4,970,710 116.887.2
6/30/20190.4483 4,772,606- 4,772,606 4,729,530 100.989.3
6/30/20180.4330 4,615,334- 4,615,334 4,549,453 101.488.8
6/30/20170.4410 5,954,025- 5,954,025 4,529,519 131.485.4
6/30/20160.4290 17,216,517- 17,216,517 4,128,855 417.063.9
6/30/20150.4460 5,067,604- 5,067,604 4,031,138 125.786.6
Contributions in
Relation to theContributions as
StatutorilyStatutorilyContributionCity'sa Percentage of
RequiredRequiredDeficiencyCoveredCovered
YearContributionContribution(Excess)PayrollPayroll
Ending(a)(b)(a-b)(c)(b/c)
12/31/2024$ 883,853$ 883,853$ - $ 4,993,52217.70%
12/31/2023 869,104 869,104 - 4,910,19217.70
12/31/2022 734,786 734,786 - 4,151,33317.70
12/31/2021 832,803 832,803 - 4,705,10417.70
12/31/2020 887,315 887,315 - 5,013,08417.70
12/31/2019 818,676 818,676 - 4,829,94516.95
12/31/2018 761,952 761,952 - 4,703,40516.20
12/31/2017 720,865 720,865 - 4,449,78416.20
12/31/2016 689,601 689,601 - 4,256,79616.20
12/31/2015 687,935 687,935 - 4,246,51116.20
93
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.
94
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
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.
95
City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
2024202320222021202020192018201720162015
(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$ 9 8,240$ 120,802$
88,266 $ 85,904
Interest1 31,9751 35,2881 24,5701 36,9481 37,9831 71,0571 91,7901 74,1911 73,2191 78,242
Changes in benefit terms2 63,965 15,0862 42,775 -1 64,525 18,251- 26,709 --
Changes in assumptions - 34,989- 5,863 - 52,746 44,974( 50,396)3 58,422-
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 Changes3 61,4361 96,343 51,049 (281,872) 52,193 (536,161)2 03,396 59,5255 60,891 (353,395)
Total Pension Liability - January 12 ,721,1582 ,524,8152 ,473,7662 ,755,6382 ,703,4453 ,239,6063 ,036,2102 ,976,6852 ,415,7942 ,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 local2 23,1772 05,5601 86,7971 80,0791 65,6521 64,1471 54,3661 47,0021 43,0611 58,545
Investment income (loss)2 76,399 (438,162)3 08,3741 99,9055 03,214 (236,910)5 57,1172 75,625 (181,185)1 49,635
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 Changes2 91,236 (421,578) 40,591 (157,241)2 97,518 (832,682)5 64,8512 76,964 (111,700) (319,441)
Total Plan Fiduciary Net Position - January 13 ,164,9333 ,586,5113 ,545,9203 ,703,1613 ,405,6434 ,238,3253 ,673,4743 ,396,5103 ,508,2103 ,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 PayrollN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
City's Net Pension Liability (Asset) as a Percentage of
Covered PayrollN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available.
96
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
2024 There were no changes in actuarial assumptions since the previous valuation.
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
2024- The lump sum distribution upon retirement per year of service was changed from $10,000 to $12,000.
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 $7,600.
2016 - There were no changes in benefit terms since the previous valuation.
97
City of Brooklyn Center, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
98
City of Brooklyn Center, Minnesota
Required Supplmentary Information
For the Year Ended Decemeber 31, 2024
Tdifevmf!pg!Dibohft!jo!uif!Djuz(t!PQFC!Mjbcjmjuz!boe!Sfmbufe!Sbujpt
20242023202220212020
Total OPEB Liability
Service Costs$ 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 payroll30.40 %21.52 %26.03 %21.98 %19.46 %
Dibohft!jo!bttvnqujpot;
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
updated for changes in recent studies and inflationary adjustments.
2019 - The discount rate was changed from 3.44 percent to 4.09 percent.
2018 - The discount rate was changed from 4.50 percent to 3.44 percent. The health care trend rates were changed to better anticipate short-term and
long-term medical increases. The mortality table was updated from RP-2014 adjusted to 2006 to the RP-2014 White Collar Mortality Tables with MP-2016
Generational Improvement Scale. The actuarial cost method was changed from entry age, level dollar to entry age, level percent of pay as prescribed by
GASB 75.
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Dibohft!jo!cfofgjut;
99
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100
COMBINING AND INDIVIUDAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
101
City of Brooklyn Center, Minnesota
Combining Balance Sheet
Nonmajor Governmental Funds
December 31, 2024
NonmajorNonmajor(Formerly Major)
SpecialCapitalDebt
RevenueProjectsServiceTotal
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 - - 2,319,133 2,319,133
Intergovernmental 62,492 515,920 5,949 584,361
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
Intergovernmental - 515,920 - 515,920
Special assessments - - 2,319,133 2,319,133
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 79,493 - - 79,493
Restricted 6,870,215 4,985,547 5,015,909 16,871,671
Committed 180,374 1,903,408 - 2,083,782
Unassigned (318,537) (629,187) - (947,724)
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
102
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
(Formerly Major)
SpecialCapitalDebt
RevenueProjectsServiceTotal
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 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 1,785,829 - - 1,785,829
Capital outlay
Public safety - 192,645 - 192,645
Public works - 1,455,415 - 1,455,415
Parks and recreation - 476,753 - 476,753
Debt service
Principal - - 2,623,796 2,623,796
Interest and other - - 543,761 543,761
Total Expenditures 3,997,665 2,538,141 3,167,557 9,703,363
Excess (Deficiency) of Revenues Over
(Under) Expenditures 399,847 691,931 (443,659) 648,119
Other Financing Sources (Uses)
Transfers in 739,851 100,000 374,383 1,214,234
Other Debt- Principal - - - -
Transfers out (1,171,526) - - (1,171,526)
Total Other Financing Sources (Uses) (431,675) 100,000 374,383 42,708
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
103
City of Brooklyn Center, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2024
313314315316317318724388
Housing and EconomicCommunityLocalTax
RedevelopmentDevelopmentDevelopmentPoliceRevolvingAffordableCenterbrookIncrement
AuthorityAuthorityBlock GrantForfeituresLoanHousingGolf CourseDistrict 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 -
Prepaid items - - - - - - - -
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
104
3913923933943953963973983:3
TaxTaxTaxTaxTaxTaxCityOpioid American
IncrementIncrementIncrementIncrementIncrementIncrementInitiativeSettlement Rescue
District No. 5District No. 6District No. 7District No. 8District No. 9District No. 10GrantsFunds Plan ActTotal
$ 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
- - - - - - - - 75,799
75,799
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) - - (75,799)
(318,537)
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
105
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
313314315316317318724388
Housing and EconomicCommunityLocalTax
RedevelopmentDevelopmentDevelopmentPoliceRevolvingAffordableCenterbrookIncrement
AuthorityAuthorityBlock GrantForfeituresLoanHousingGolf CourseDistrict No. 2
Revenues
Taxes
Property taxes$ 586,081 $ -$ -$ -$ -$ -$
-$ -
Tax increments - - - - - -
- -
Intergovernmental - 211,878 - - - 188,983
- -
Charges for services - 630,263 - - - -
316,382 -
Investment earnings - 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
106
3913923933943953963973983:3
TaxTaxTaxTaxTaxTaxCityOpioid American
IncrementIncrementIncrementIncrementIncrementIncrementInitiativeSettlement Rescue
District No. 5District No. 6District No. 7District No. 8District No. 9District No. 10GrantsFundsPlan ActTotal
$ -$ -$ -$ -$ -$ -$ -$
-$ -$ 586,081
440,688142,621 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 22,343 985 -
- - 1,785,829
1,496 136,068 3,740 245,703 22,343 985 864,037 45,320
812,987 3,997,665
488,626 7,481 111,381 44,119 25,072 (985) (587,232) 41,270
93,571 399,847
- - - - - -
- - - 739,851
- - - - - -
- - - -
(374,383) - - - - - (123,992)
- (93,571) (1,171,526)
(374,383) - - - - - (123,992)
- (93,571) (431,675)
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
107
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
Revenues
Taxes
Property taxes$ 586,081 $ 586,081 $ -$ 508,233
Other Financing Sources (Uses)
Tranfers out586,081579,580 (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
108
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
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 services342,145393,246 (51,101)231,972
Other services and charges260,521 980,974 (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)
Transfers out - - - (100,000)
Transfer in586,081 579,580 6,501 508,959
Total Other Financing Sources (Uses)586,081579,5806,501408,959
Net Change in Fund Balances 221 105,965 118,746 (147,420)
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 $ 1,534,689
109
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
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 236,849244,371 (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)
110
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
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 1552,893552,893 -379,386
Fund Balances, December 31$ 653,705 $ 667,136 $ 13,431$ 552,893
111
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
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
112
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
20242023
FinalActualVariance withActual
BudgetAmountsFinal BudgetAmounts
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
113
City of Brooklyn Center, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2024
512513517521
Municipal
State AidCapital
CapitalforReserve
ImprovementsConstructionEmergencyTechnologyTotal
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 Inflow of
and Fund balance$ 1,526,404$ 5,508,907$ (629,187)$ 433,121$ 6,839,245
114
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
401402406407409410
(Formerly(Formerly
Municipal Nonmajor)Nonmajor)
State AidCapitalSpecial
CapitalforReserveAssessmentStreet
ImprovementsConstructionEmergencyConstructionReconstructionTechnologyTotal
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 safety 192,645 - - - - - 192,645
Public works 1,455,415 - - - - - 1,455,415
Parks and recreation 476,753 - - - - - 476,753
Total Expenditures 2,124,813 306,00285,224 - -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
115
THIS PAGE IS LEFT
BLANK INTENTIONALLY
116
City of Brooklyn Center, Minnesota
General Fund
Comparative Balance Sheets
December 31, 2024 and 2023
20242023
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 358,880 229,046
Intergovernmental 29,203 14,080
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 governments68,024130,352
Accrued wages payable1,015,921692,922
Deposits payable742,940579,616
Unearned revenue 33 -
Total Liabilities 2,274,737 1,673,072
Deferred Inflows of Resources
Unavailable revenue
Property taxes -69,142
Special assessments358,880229,046
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
117
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
2024
2023
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
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
118
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
2024
2023
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
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 487,313 487,313 350,807 136,506 438,337
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 1,154,732 56,010 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 5,607,768 394,437 5,227,996
119
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
2024
2023
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
Expenditures (Continued)
Current (Continued)
Public safety
Community prevention, health and safety
Personal services$ 162,894$ 162,894$ 218,515$ (55,621)$ 188,866
Supplies 7,705 7,705 4,624 3,081 2,280
Other services and charges 141,760 141,760 279,718 (137,958) 111,867
Total community prevention, health and safety 312,359 312,359 502,857 (190,498) 303,013
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 1,779,712 1,779,712 1,989,335 (209,623) 1,910,753
Total police protection 11,191,701 11,191,701 10,432,296 759,405 10,239,267
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 40,062
Total protective inspection 279,954 279,954 278,199 1,755 283,399
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 14,884,269 560,797 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
120
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
2024
2023
Budgeted Amounts
ActualVariance withActual
OriginalFinalAmountsFinal BudgetAmounts
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
121
City of Brooklyn Center, Minnesota
Debt Service Funds
Combining Balance Sheet (Continued on the Following Pages)
December 31, 2024
316317318319320321
GeneralGeneralGeneralGeneralGeneralGeneral
ObligationObligationObligationObligationObligationObligation
ImprovementImprovementImprovementImprovementImprovementImprovement
Bonds 2013BBonds 2015ABonds 2016ABonds 2017ABonds 2018ABonds 2019A
Assets
Cash and investments$ 116,087$ 541,452$ 281,863$ 690,168$ 769,928$ 1,046,967
Receivables
Intergovernmental 223 2,992 - 186 1,593 955
Special assessments 2,137 76,563 - 183,369 461,390 665,947
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
122
322323324372373375
GeneralGeneralGeneral
ObligationObligationObligationTaxTaxTax
ImprovementImprovementImprovementIncrementIncrementIncrement
Bonds 2020ABonds 2021ABonds 2022ABonds 2016CBonds 2016BBonds 2013ATotal
$ 274,332$ 785,091$ 500,429$ 1,293$ 1,550$ 800$ 5,009,960
- - - - - - 5,949
- 750,225 179,502 - - - 2,319,133
$ 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
123
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
316317318319320321
GeneralGeneralGeneralGeneralGeneralGeneral
ObligationObligationObligationObligationObligationObligation
ImprovementImprovementImprovementImprovementImprovementImprovement
Bonds 2013BBonds 2015ABonds 2016ABonds 2017ABonds 2018ABonds 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 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
124
322323324372373375
GeneralGeneralGeneral
ObligationObligationObligationTaxTaxTax
ImprovementImprovementImprovementIncrementIncrementIncrement
Bonds 2020ABonds 2021ABonds 2022ABonds 2016CBonds 2016BBonds 2013ATotal
$ 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
125
City of Brooklyn Center, Minnesota
Statement of Net Position
Nonmajor Proprietary Funds
December 31, 2024
Business-type Activities - Enterprise Funds
609408 l 617652653
Municipal Heritage CenterStreet LightRecycling
Liquor of Brooklyn CenterUtilityUtilityTotal
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
126
City of Brooklyn Center, Minnesota
Statement of Revenues, Expenses and Changes in Net Position
Nonmajor Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities - Enterprise Funds
609408 l 617652653
Municipal Heritage CenterStreet LightRecycling
Liquor of Brooklyn CenterUtilityUtilityTotal
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
127
City of Brooklyn Center, Minnesota
Statement of Cash Flows
Nonmajor Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities
609408 l 617652653
Municipal Heritage CenterStreet LightRecycling
Liquor of Brooklyn CenterUtilityUtilityTotal
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
128
City of Brooklyn Center, Minnesota
Internal Service Funds
Combining Statement of Net Position
December 31, 2024
701703704905906
CentralEE RetirementEE CompPension -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
Inventories37,862 - - - - 37,862
Total Current Assets 4,185,606 38,542 1,428,181 - - 5,652,329
Noncurrent Assets
Capital assets
Building and improvements166,108 - - - - 166,108
Machinery and equipment14,676,366 - - - - 14,676,366
Construction in progress110,000 - - - - 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 - - -958,9027,761,978 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 payable86,514 - - - - 86,514
Accrued salaries and wages payable3,177 - - - - 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 - - -4,654,3804,715,660 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 - - -3,071,4688,792,047 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)
129
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
701703704905906
CentralEE RetirementEE CompPension -Pension -
Garage Benefit Absences GERP PEPFP
Total
Operating Revenues
Sales and user fees$ 2,940,979$ -$ -$ -$ -$ 2,940,979
Operating Expenses
Personal services479,676383,907 (292,662) (316,691) (125,621) 128,609
Supplies551,513 - - - - 551,513
Other services 368,376 - - - - 368,376
Insurance77,501 - - - - 77,501
Utilities1,062 - - - - 1,062
Depreciation1,081,809 - - - - 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)
130
City of Brooklyn Center, Minnesota
Internal Service Funds
Combining Statement of Cash Flows
For the Year Ended December 31, 2024
701703704905906
CentralEE RetirementEE CompPension -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 (1,016,632) - - - - (1,016,632)
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 1,875,391 (222,212) - - - 1,653,179
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 (2,159,933) - - - - (2,159,933)
Proceeds from sale of capital assets 450,000 - - - - 450,000
Net Cash Used by Capital and Related Financing Activities (1,709,933) - - - - (1,709,933)
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 (25,212) - - - - (25,212)
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$ 1,875,391$ (222,212) $ - $ - $ - $ 1,653,179
131
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
TotalTotalIncrease
20242023(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$ 5,956,724$ 7,164,544 (16.86)%
Public safety 15,445,687 14,335,045 7.75
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 3,122,648 2,914,683 7.14
Nondepartmental 508,534 559,725 (9.15)
Capital outlay
Public safety 192,645 82,425 133.72
Public works 6,219,821 2,861,851 117.34
Culture and recreation 476,753 718,320 (33.63)
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$ 44,313,106$ 40,262,464 10.06%
Per Capita$ 1,304$ 1,185 10.06%
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.
132
OTHER REQUIRED REPORTS
CITY OF BROOKLYN CENTER
BROOKLYN CENTER, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
133
THIS PAGE IS LEFT
BLANK INTENTIONALLY
134
INDEPENDENT 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, and have
issued our report thereon dated .
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,
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.
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Mankato, Minnesota
135
CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIALSTATEMENTS 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 statementsof 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, 2024statements and have issued our report
thereon dated .
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
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
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 2004-002to 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.
136
s
sidentified in our audit are described in the accompanying Schedule of Findings,
Responsesand Questioned Costsresponseswerenot subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion onthem.
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
report isan integral part of an audit performed in accordance with Government Auditing Standards in considering the
Abdo
Mankato, Minnesota
137
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 auditedthe 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
December 31, 2024
identified in the
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
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
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 o
Our objectives are to obtain reasonable assurance about whether material noncompliance with the 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
compliance with the requirements of each major federal program as a whole.
138
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
compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
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
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 ofa 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.
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.
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Mankato, Minnesota
139
140
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.
141
City of Brooklyn Center, Minnesota
Schedule of Findings, Responses and Questioned Costs
For the Year Ended December 31, 2024
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issuedUnmodified
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 programsUnmodified
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.
21.027C
Coronavirus State and Local Fiscal Recovery Funds
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
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.
Section III - Major Federal Award Findings and Questioned Costs
There were no significant deficiencies, material weaknesses or instances of
noncompliance including questioned costs that are required to be reported in accordance
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.
142
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. We noted several transactions purchased on City credit cards
outside of the allowed exceptions and not properly documented as described in the purchasing
policy.
Criteria:
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: Unknown
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 and
procedures in place to ensure compliance with policies.
143
City of Brooklyn Center, Minnesota
Schedule of Findings, Responses and Questioned Costs (Continued)
For the Year Ended December 31, 2024
Finding Description
2024-002 Internal Controls over Signed Contracts and ARPA Obligations
Condition: During our audit, we sampled various contracts for proper authorization and dates related
amounts that have been obligated for grant reimbursement. We noted an obligation with a
contract date in 2024 but signatures showed 2025. There were also several contracts that did not
have dates on their signature block which provides documentation of contract execution.
Criteria: Document management of contracts with proper date and signatures is an important control for
the appropriate documentation and approval of agreements with the City and requirements for
ARPA fund reimbursement in the future.
Cause: Unknown
Effect: This could result in errors with proper application of contracts and overall future budgeting if
there are change in contracts. This could also could result in loss of funding if tied to any grant
requirements.
Recommendation: The City should have these contracts on file for review with proper authorization. There is
software that implements electronic signatures that can help in this process to ensure proper
approval and retention. The City should also review and have on file all ARPA obligations for
review. The City should consult their attorney for proper form and execution of these contracts. If
there are invalid contracts the obligation and expenditures might not be allowable which will
result in a requirement to be reimburse the Federal Agency for that portion of the grant.
Management Response:
The City will these contracts and look to implement a process around contract retention and approval.
144
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
145
2024-002 Internal Controls over Contracts
CORRECTIVE ACTION PLAN (CAP):
6.Explanation of Disagreement with Audit Findings:
There is no disagreement with the audit finding.
7.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.
8.Official Response of Ensuring CAP:
Dr. Reginald M. Edwards, City Manager, is the official responsible for ensuring correction of this significant deficiency.
9.Planned Completion Date for CAP:
December 31, 2025
10.Plan to Monitor Completion of CAP
The City Council will be monitoring this corrective action plan.
Sincerely,
Dr. Reginald M. Edwards
City Manager
146
City of Brooklyn Center, Minnesota
Schedule of Prior Year Findings
For the Year Ended December 31, 2024
Finding Description
2023-001 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:
vendor payment process authorized for credit card use.
Cause: We noted several transactions purchased on City credit cards outside of the allowed exceptions
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.
2023-002 Monthly Reports and Monitoring
Condition: During our audit, we noted that City Council is not consistently receiving complete financial
reports.
Criteria: The City Council is ultimately responsible for overseeing financial reporting. Reviewing
accounting reports, including budget to actual reports, for all funds is important in making all
financial decisions. It is also important from a monitoring standpoint since there is limited
segregation of duties.
Cause:
The budget reports did not appear to be included in the City Council packet each month.
Effect: Without formal approval, the City Council appears to have not been provided with sufficient
information throughout the year to analyze and monitor activity.
Recommendation: We recommend that City Council formally receive and closely review reports monthly, quarterly at
a minimum, including budget to actual as well as cash balances for each fund compared to the
previous reporting period.
Management Response:
Management plans to implement the recommendation described above.
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