HomeMy WebLinkAbout2024.10.14 FCAC IT Y
C O UNC I L/F INANC I AL
C O M M IS S IO N M E E T I NG
City Hall Council Chambers
October 14, 2024
AGE NDA
1.Call to Order - 5:00 p.m.
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City C ounc il packet is available to the public . The packet ring binder is loc ated at
the entrance of the council chambers.
2.Roll call
3.P resentation of the Audit Report and M anagement Letter
a.Presentation of the 2023 Audit Report
4.Council/Commission Questions
5.M iscellaneous
6.Adjourn
COU N C IL ITEM MEMOR ANDUM
DAT E:10/14/2024
TO :Dr. R eggie Edwards , C ity Manager
T HR O UG H:N/A
F R O M:Angela Holm, F inance Director
S UBJ EC T:P resentation of the 2023 Audit R eport
Background:
AT TAC HME N T S:
Desc ription Upload Date Type
2023 Audit P res entation 10/11/2024 P res entation
City of
Brooklyn Center
2023 Financial Statement Audit
Introduction
•Audit Results
•General Fund
•Other Governmental Funds
•Enterprise Funds
•Key Performance Indicators
2
3
Audit Results
Minnesota Legal
ComplianceAuditor’s Opinion Single Audit Report
Unmodified opinion under GAAP No instances of noncompliance No instances of noncompliance with
OMB Compliance Supplement
requirements
Audit Results
2023 Audit Findings
•Internal Controls over Credit Cards
•Internal Control Finding
•Monthly Reports and Monitoring
•Internal Control Finding
4
5
•Internal Controls over Federal Procurement
•Removed for 2023
Results from Prior Year
2022 Audit Findings
6
General Fund Fund Balances
51.2%
52.0%52.0%
45.7%47.9%
$22,416,569
$23,793,989
$23,755,527
$28,668,929 $28,006,619
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$22,000,000
$24,000,000
$26,000,000
$28,000,000
$30,000,000
2019 2020 2021 2022 2023 2024
City Fund Balance Policy (50% to 52%) Unassigned Fund Balance Budget
7
General Fund Budget to Actual
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 27,678,297$ 26,787,439$ (890,858)$
Expenditures 29,530,929 27,821,556 1,709,373
Excess (Deficiency) of Revenues
Over (Under) Expenditures (1,852,632) (1,034,117) 818,515
Other Financing Sources (Uses)
Administrative services reimbursed 2,032,632 1,771,717 (260,915)
Transfers out (180,000) (180,000) -
Total Other Financing Sources (Uses)1,852,632 1,591,717 (260,915)
Net Change in Fund Balances - 557,600 557,600
Fund Balances, January 1 13,038,219 13,038,219 -
Fund Balances, December 31 13,038,219$ 13,595,819$ 557,600$
8
General Fund Revenues by Type
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Taxes Intergovernmental Transfers Other
2021 2022 2023
9
General Fund Expenditures by Type
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
General
Government
Public Safety Public Works Parks and
Recreation
Economic
Development
Other
2021 2022 2023
10
Special
Revenue
Fund
Balances
Increase
2023 2022 (Decrease)
Major
Tax Increment District No. 3 21,605,846$ 22,741,645$ (1,135,799)$
Nonmajor
Housing and Redevelopment Authority 1,612 2,338 (726)
Economic Development Authority 1,534,689 1,682,109 (147,420)
Community Development Block Grant 72,376 72,376 -
Police Forfeitures 104,772 87,490 17,282
Revolving Loan 142,405 41,272 101,133
Centerbrook Golf Course (257,858) (224,145) (33,713)
Tax Increment District No. 2 1,711,863 1,664,926 46,937
Tax Increment District No. 5 552,893 379,386 173,507
Tax Increment District No. 6 36,237 54,962 (18,725)
Tax Increment District No. 7 451,317 304,496 146,821
Tax Increment District No. 8 128,534 44,041 84,493
Tax Increment District No. 9 (2,089) - (2,089)
Tax Increment District No. 10 (2,433) - (2,433)
City Initiative Grants 2,291,366 949,672 1,341,694
Opioid Settlement Funds 77,689 10,140 67,549
American Rescue Plan Act - - -
Total 28,449,219$ 27,810,708$ 638,511$
Fund
Fund Balances
December 31
11
Capital
Project
Fund
Balances
Increase
2023 2022 (Decrease)
Nonmajor
Capital Improvements 1,728,419$ 1,463,955$ 264,464$
Municipal State Aid for Construction 3,941,993 2,582,195 1,359,798
Capital Reserve Emergency (543,963) 1,092,613 (1,636,576)
Special Assessment Construction (798,565) 868,843 (1,667,408)
Street Reconstruction 6,282,679 5,465,268 817,411
Technology 341,388 285,160 56,228
Total 10,951,951$ 11,758,034$ (806,083)$
Fund
December 31
Fund Balances
12
Capital
Project
Fund
Balances
(Continued)
$(2,000,000)
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
Nonspendable Restricted Committed Assigned Unassigned
2021 2022 2023
13
Debt
Service
Total
Cash and Total Bonds Year of
Investments Assets Outstanding Maturity
316 General Obligation Improvements Bonds 2013B 99,797$ 104,425$ -$ Matured
317 General Obligation Improvements Bonds 2015A 556,881 712,017 1,062,688 2026
318 General Obligation Improvements Bonds 2016A 266,294 266,981 775,000 2027
319 General Obligation Improvements Bonds 2017A 733,036 983,303 1,945,000 2028
320 General Obligation Improvements Bonds 2018A 825,217 1,405,030 2,415,000 2029
321 General Obligation Improvements Bonds 2019A 1,075,647 1,912,520 2,620,000 2030
322 General Obligation Improvements Bonds 2020A 245,203 245,968 1,720,000 2031
323 General Obligation Improvements Bonds 2021A 738,131 1,640,774 2,755,000 2032
324 General Obligation Improvements Bonds 2022A 525,296 785,748 2,095,000 2033
372 Tax Increment Bonds 2016C 1,650 1,650 - Matured
373 Tax Increment Bonds 2016B 1,550 1,550 2,075,000 2029
374 Tax Increment Bonds 2013A 800 800 - Matured
Total 5,069,502$ 8,060,766$ 17,462,688$
Total Remaining Interest Paymen 1,939,593$
Description
14
Debt
Service
(Continued)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Principal Interest
15
Internal
Service
Balances
Increase Cash
2023 2022 (Decrease)Balance
Central Garage 8,971,626$ 8,178,227$ 793,399$ 3,816,736$
EE Retirement Benefit (2,812,944) (2,499,351) (313,593) -
EE Comp Absences - - - 1,372,807
Pension - GERP (7,301,009) (7,020,007) (281,002) -
Pension - PEPFP (5,993,242) (5,476,992) (516,250) -
Total (7,135,569)$ (6,818,123)$ (317,446)$ 5,189,543$
Fund Balances
December 31
Fund
16
Water
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$4,124,408 $4,331,324 $4,173,717
$5,021,017
$2,133,030 $2,213,640 $2,624,748 $2,677,098
$2,247,206 $2,325,717
$2,571,462 $2,731,029
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Operating Disbursements Debt Payments
$3,392,232
$3,678,282
$4,043,403 $4,066,519
$3,135,562 $2,359,055
$1,223,814
$176,178
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
2020 2021 2022 2023
Actual Cash
Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
17
Sanitary
Sewer
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$4,651,102 $4,725,866 $5,001,344 $5,222,756
$3,290,666 $3,499,262 $3,670,842 $4,137,545
$640,782
$764,485
$921,002
$1,024,234
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Bond Proceeds Operating Disbursements Debt Payments
$2,409,818 $2,670,633 $2,859,655 $3,091,624
$4,878,097
$4,309,130 $4,397,803 $4,191,553
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2020 2021 2022 2023
Restricted
Actual CashMinimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
18
Storm
Drainage
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$1,715,071 $1,819,733 $1,814,981 $1,893,453
$891,718 $777,382 $864,025 $937,349
$351,396 $475,663
$555,938
$684,962
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Bond Proceeds Operating Disbursements Debt Payments
$921,522 $944,629 $1,116,975 $1,153,039
$4,119,635
$4,998,747
$4,425,391
$4,977,736
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2020 2021 2022 2023
Restricted
Actual Cash
Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
19
Municipal
Liquor
Fund
Cash Flows from
Operations and Cash
Balances
$5,544,894 $5,409,136
$7,411,344
$6,633,874 $6,178,991 $5,817,927
$6,810,369 $6,516,468
$75,674 $185,050
$294,679 $214,851
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Operating Disbursements Debt Payments
$1,729,798 $1,749,161
$1,917,443 $1,842,517
$1,441,472
$846,457
$1,123,446 $1,066,343
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2020 2021 2022 2023
Restricted
Actual Cash
Minimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs)
20
Liquor
Store -
Statewide
Averages
vs.
Brooklyn
Center
Liquor
Store
Total Total Total
Sales 5,556,568$ 100.0 %6,909,980$ 100.0 %6,565,245$ 100.0 %
Cost of Sales (4,130,013) (74.3) (5,108,499) (73.9) (4,619,717) (70.4)
Gross profit 1,426,555 25.7 1,801,481 26.1 1,945,528 29.6
Operating Expenses (1,756,432) (31.6) (1,790,242) (25.9) (1,973,321) (30.1)
Operating Income (Loss)(329,877) (5.9) 11,239 0.2 (27,793) (0.5)
Nonoperating Income (Expenses)278,706 5.0 (70,475) (1.0) (14,878) (0.2)
Change in Net Position (51,171)$ (0.9) (59,236)$ (0.8) (42,671)$ (0.7)
Cash and Temporary
Investments 846,457$ 1,123,446$ 1,066,343$
2022
Percent
2023
Percent
2021
Percent
Sales 100.0 %100.0 %100.0 %
Cost of Sales 74.1 73.7 73.7
Gross Profit 25.9 26.3 26.3
Operating Expenses 18.6 16.0 16.0
Operating Income 7.3 10.3 10.3
Nonoperating Revenues (Expenses)- 0.3 0.3
Income Before Transfers 7.3 %10.6 %10.6 %
Source: Analysis of Municipal Liquor Store Operations, for the year ended December 31, 2021.
Published by the Minnesota Office of the State Auditor.
of Sales of Sales of Sales
Off-Sale Only
2020 2021 2022
Percent Percent Percent
21
Heritage
Center of
Brooklyn
Center
Fund
Cash Flows from
Operations and Cash
Balances
$1,824,203 $1,631,370
$3,169,983
$3,829,228
$2,823,742 $2,477,930
$3,760,452
$4,247,633
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$1,411,871
$1,238,965
$1,880,226 $2,123,817
$1,662,759
$813,319
$177,821 $(182,660)
$(500,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2020 2021 2022 2023
Actual Cash Minimum Target Balance (50% of Operating Costs)
22
Street
Light
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$489,750 $498,524 $511,742 $508,396
$225,866
$299,608
$373,770
$458,489
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$112,933 $149,804 $186,885 $229,245
$1,152,977
$795,499
$461,598
$535,916
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2020 2021 2022 2023
Actual Cash Minimum Target Balance (50% of Operating Costs)
23
Recycling
Utility
Fund
Cash Flows from
Operations and Cash
Balances
$398,449 $402,156 $394,693 $414,073 $397,747 $401,977 $362,384
$571,503
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2020 2020 2021 2021 2022 2022 2023 2023
Operating Receipts Operating Disbursements Debt payments (including related transfers)
$198,874 $200,989
$181,192
$285,752
$205,558 $205,278
$231,202
$78,526
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2020 2021 2022 2023
Actual Cash Minimum Target Balance (50% of Operating Costs)
24
Cash and Investments Balances
by Fund Type
$65,014,927
$57,010,506 $57,489,609
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2021 2022 2023
General Fund Capital Funds Special Revenue Funds
Debt Service Funds Enterprise Funds Internal Service Funds
25
Taxes
Key Performance Indicators
2020 2021 2022 2023
Class 2 Cities (20,001 -
100,000)43.1%42.7%N/A N/A
Comparable City Group 44.5%43.8%N/A N/A
Cities in Hennepin County 41.5%40.1%N/A N/A
City of Brooklyn Center 66.6%66.3%57.1%56.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Tax Rate
26
Taxes
Key Performance Indicators
2020 2021 2022 2023
Class 2 Cities (20,001 -
100,000)$620 $654 N/A N/A
Comparable City Group $710 $751 N/A N/A
Cities in Hennepin County $847 $878 N/A N/A
City of Brooklyn Center $807 $848 $690 $680
$-
$200
$400
$600
$800
$1,000
$1,200
Taxes -Per Capita
27
Debt
Key Performance Indicators
2020 2021 2022 2023
Class 2 Cities (20,001 -
100,000)10.85%12.08%N/A N/A
Comparable City Group 12.13%15.01%N/A N/A
Cities in Hennepin County 12.80%12.62%N/A N/A
City of Brooklyn Center 16.31%16.21%16.50%8.05%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Debt Service Expenditures as a Percent of Current Expenditures
28
Expenditures
Key Performance Indicators
2020 2021 2022 2023
Class 2 Cities (20,001 -
100,000)$755 $739 N/A N/A
Comparable City Group $851 $778 N/A N/A
Cities in Hennepin County $913 $929 N/A N/A
City of Brooklyn Center $744 $784 $850 $990
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Current Expenditures -Per Capita
29
Expenditures
Key Performance Indicators
2020 2021 2022 2023
Class 2 Cities (20,001 -
100,000)$319 $315 N/A N/A
Comparable City Group $239 $187 N/A N/A
Cities in Hennepin County $430 $447 N/A N/A
City of Brooklyn Center $281 $413 $284 $108
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Capital Expenditures -Per Capita
30
Your Abdo Team
Tom Olinger, CPA
Partner
thomas.olinger@abdosolutions.com
Layne Kockelman, CPA
Senior Manager
layne.kockelman@abdosolutions.com
Ellie Singleton
Associate
ellie.singleton@abdosolutions.com
Dave Abriol
Associate
dave.abriol@abdosolutions.com
Phien Doan
Associate
phien.doan@abdosolutions.com