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HomeMy WebLinkAboutCAFR-1999 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended Decem ber 31 1999 Michael J. McCaule Ci Mana er Y� tY 9 Prepared by THE DEPARTMENT OF FINANCE Charles Hansen, Director (Member of Government Finance OfFicers Canada Association of the United States and 1 City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Exhibit Page Number Number I. INTRODUCTORY SECTION Title Page i Table of Contents ii vii City Officials 1 t Organization Chart 2 City Manager's Letter 3 Letter of Transmittal 4- 14 Certificate of Achievement 15 I1. FINANCIAL SECTION Independent Auditors' Report 16 A. General Purpose Financial Statements (Combined Statements Overview): 17 Combined Balance Sheet All Fund Types and Account Groups 1 18 19 Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types 2 20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget And Actual General and Special Revenue Funds 3 21 Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Types 4 22 Combined Statement of Cash Flows Proprietary Fund Types 5 23 Notes to Financial Statements 24 49 ii City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining, Individual Fund and Account Group Financial Statements and Schedules: General Fund: Comparative Balance Sheet A-1 51 Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual A-2 52 Schedule of Revenues Other Financing Sources Budget and Actual S-1 53 54 Schedule of Expenditures Other S-2 55 59 Financing Uses Budget and Actual Special Revenue Funds: Combining Balance Sheet B-1 61 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B-2 63 64 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Housing and Redevelopment Authority Fund B-3 65 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Economic Development Authority Fund B-4 66 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual E. Brown Tax Increment Financing District Fund B-5 67 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tax Increment District No. 3 Fund B-6 68 iii t City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Statement/ Schedule Page �Jumber Number Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Tax Increment District No. 4 Fund B-7 69 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Police Drug Forfeiture Fund B-8 70 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Community Development Block Grant Fund B-9 71 Statement of Revenues, Expenditures and Changes in Fund Baiance Budget and Actual City Initiatives Grant Fund B-10 72 Debt Service Funds: Combining Balance Sheet C-1 74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 75 Capital Projects Funds: Combining Balance Sheet D-1 77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 78 Project-Length Schedule of Construction Projects Capital Improvements Fund S-3 79 Project-Length Schedule of Construction Projects Municipal State Aid for Construction Fund S-4 80 Project-Length Schedule of Construction Projects Special Assessment Construction Fund S-5 81 Enterprise Funds: Combining Balance Sheet E-1 83 84 iv City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Statement/ Schedule Page Number Number Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 85 86 Combining Statement of Cash Flows E-3 87 88 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Municipal Liquor Fund E-4 89 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Golf Course Fund E-5 90 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Earle Brown Heritage Center Fund E-6 91 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Recycling and Refuse Fund E-7 92 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Water Utility Fund E-8 93 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Sanitary Sewer Fund E-9 94 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Storm Drainage Fund E-10 95 Internal Service Funds: Combining Balance Sheet F-1 97 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 98 v 1 City of Brookiyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Statement/ Schedule Page Number Number Combining Statement of Cash Flows F-3 99 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets by Source S-6 101 Schedule of General Fixed Assets By Function and Activity S-7 102 Schedule of Changes in General Fixed Assets t By Function and Activity S-8 103 General Long-Term Debt Account Group: Comparative Statement of General Long-Term Debt G 105 Summary af Debt Service Requirements to Maturity H 106 III. STATISTICAL SECTION Table Page Number Number General Governmental Expenditures by Function 1 108 General Governmental Revenues and Other Financing Sources by Source 2 109 Tax Levies and Tax Collections 3 110 Assessed Value and Estimated Market Value of All Taxable Property 4 111 Direct and Overlapping Tax Rates and Tax Levies 5 112 Special Assessment Billings and Collections 6 113 Rati 0 of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 114 vi 1 t City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1999 TABLE OF CONTENTS Table Page Number Number Computation of Legal Debt Margin 8 115 Computation of Direct and Overlapping Debt 9 116 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures 10 117 Schedule of Revenue Bond Coverage 11 118 Property Value, Construction and Bank Deposits 12 119 Principal Taxpayers 13 120 Schedule of Insurance Coverage 14 121 122 t Demographic Statistics 15 123 Miscellaneous Statistical Facts 16 124 125 vii City of Brooklyn Center CITY OFFICIALS For the Year Ended December 31, 1999 ELECTED OFFICIALS Term of Office Term Exnires Mayor Myrna Kragness Four Years 12/31/2002 Councilmember Debra Hilstrom Four Years 12/31/2002 Councilmember Ed Nelson Four Years 12/31/2002 Councilmember Kay Lasman Four Years 12/31/2000 Councilmember Robert Peppe Four Years 12/31/2000 APPOINTED OFFICIALS City Manager Michael J. McCaule Y Asst. City Manager/H.R. Director Jane Chambers City Clerk Sharon Knutson City Treasurer Charles Hansen City Attorney Kennedy Graven City Prosecutor Carson Clelland Department Heads: Community Activities, Recreation Services James Glasoe Community Development Brad Hoffman Financial Services Charles Hansen Fire/Emergency Preparedness Ronald Boman Police Joel Downer Public Works Diane Spector Assessing Stephen Baker City Engineer Scott Brink Civil Defense Coordinator Ronald Boman Fire Marshall Ronald Boman Health Officer Duane Orn, M.D. Liquor Stores Gerald Olson Public Works Superintendent Dave Peterson 1 1 City of Brooklyn Center D�ganizafion 2000 ELECTORATE Ciry Couneil Advisory Commissions N ADMINISTRATION -Purchasing -Human Resources -Communications CilyAttomey CityManager �gmthifo.Systams -Liquor Storea -Eledions -Licenses -City Cletk I PUBLIC WORKS FIRE DEPARTMENT POLICE DEPARTMENT COMMUNII'YACTNITIES, RECREATION, AND SERVICES COMMUNITY -Engineering -Ftre PreveMan -Patrol FINANCIAL SERVICES DEVELOPMENT -SVeet Maint -Fire Suppression -Irnesti ation -AccouMin C�mun'dy Programs -Sanita Sewer -Emer anc Pr aredness 9 g -Reaeal{on Programs -Assessin 9 Y eP -Crime Prevention -Audd g ry -Community Center -Inspedions -CenVal Garage -Communiry Programs -Utility Billing -Gov't Bidgs -EDA/HRA -Storm Sewer -Support Services -Risk ManagemeM -Golf Course -Zoning Water Dept -Oispatch ;-Senior Transportation i-Heritage Center -Park Maint 1 -Planning I City of Brooklyn Center A great place to start. A great place to stay. May 17, 2000 t HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL CITY OF BROOKLYN CENTER I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn Center for the fiscal year ended December 31, 1999. Minnesota Statu#es and City Charter, Section 7.12, require that the financial statements of the City of Brooklyn Center be audited by the State Auditor or a certified public accountant selected by the City Council. This requirement has been complied with by the engagement of the firm of Deloitte and Touche LLP and their report is included in the financial section of this report. 1 This report has been prepared foNowing the guidelines recommended by the Government Finance Officers Association of the United States and Canada. The Government Finance Officers Association awards Certificates of Achievement for Excellence in Financial Reporting to those governments whose Comprehensive Annual Financial Reports are judged to conform substantially with high standards of public financial reporting, including generally accepted accounting principles promulgated by the Governmental Accounting Standards Board. Our financial reports for the past fourteen years have received this award. It is my belief that the accompanying report meets program standards, and it will be submitted to the Government Finance Officers Association for review. Respectfully sub itted, 1 y Michael J. Mc le Y City Manager 1 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 Cit Hall TDD Number (612) 569-3300 y Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494 An �rmative Action /Eq 3 l Opportunities Employer City of Brooklyn Center t A gre¢t pldce to start. A great place to stay. May 17, 2000 t Mr. Michael J. McCauley City Manager City of Brooklyn Center Dear Mr. McCauley: The comprehensive annual financial report of the City of Brooklyn Center (the City) for the fiscal year ended December 31, 1999, is hereby submitted. Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position, results of operations, and cash flows of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the government's financial activities have been included. The comprehensive annual financial report is presented in three sections: introductory, financial, and statistical. Included in the introductory section is this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generafly presented on a multi year basis. The City is required to comply with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations." This requires a"single audit" when expenditures of federal grants exceed $300,000 in one year. Expenditures of federal grants were less than $300,000 during the year ended December 31, 1999, so no single audit was required. REPORTING ENTITY The financial reporting entity includes all funds and account groups of the primary government (i.e., the City of Brooklyn Center as legally defined), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 Cit Hall TDD Number (612 569-3300 y Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494 An Affirmative Action/Equ�zl Opportunities Employer 4 Blended component units, although legally separate entities, are, in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Economic Development Authority and the Housing and Redevelopment Authority are reported as special revenue funds of the City of Brooklyn Center. The City provides a full range of municipal services including public safety (police and fire), streets, sanitation, social services, culture-recreation, public improvements, planning and zoning, and general administrative services. The City operates three off-sale liquor stores with plans to consolidate into two stores in 2000, a public water and sewer utility, a golf course, and a convention center known as the Earle Brown Heritage Center. ECONOMIC CONDITION AND OUTLOOK The City of Brooklyn Center is a northern suburb of the Minneapolis/St. Paul metropolitan area, lying adjacent to the City of Minneapolis. The City is wholly within Hennepin County and encompasses an area of approximately 8.5 square miles. The Mississippi River forms the City's eastern boundary. The City experienced its most rapid growth from 1950 to 1970 when the City's population grew from 4,300 to its peak of 35,173. The 1990 Census count for the City is 28,887, a 7.5% decline from the 1980 Census. The 1998 population, as estimated by the Metropolitan Council, is 28,535. In contrast to the decline in population (which is due almost entirely to fewer persons per household), the number of housing units has generally continued to increase from 10,493 in 1970 to 11,035 in 1980 and 11,704 in 1990. The numbers dropped slightly in 1998 to 11,295 housing units. This was due to the removal of some units by the City in accordance with a preplanned redevelopment effort. The estimated market value of properly within the City increased 7.42% in 1998 over 1997 and it increased 7.29°/a in 1999 over 1998. The City Assessor reports that residential values are continuing to show increases in early 200Q although commercial/industrial values are less robust. Major transportation routes in and through the City, including Interstates 94 and 694, and State Highways 100 and 252, have provided a continued impetus for development ofi a strong commercial tax base in the City. Commercial and industrial property comprises 52.4% of the City's taxable net tax capacity. There are four major shopping centers located in the City. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square-foot regional shopping center anchored by Daytons, Sears, J.C. Penney's, and Mervyn's of California. The other three retail shopping centers in the City include Brookdale Square, a 125,000 square-foot strip center plus an 8-screen theater; Shingle Creek Center, a 157,000 square-foot building anchored by Target; and Brookview Plaza, a 70,000 square-foot center anchored by Best Buy. Other free-standing retail establishments include K-Mart, Kohl's Department Store, Toys' R Us, and a Rainbow supermarket. Westbrook Mall, which was the fifth shopping 5 center, was torn down in 1999 to make way for a Cub supermarket and various other retail shops. New construction in 1999 includes the Regal Cinema Theater for $8,782,377; Wickes Furniture warehouse for $5,046,300; Cub Foods supermarket for $3,000,000; an addition to the Target Store for $1,100,000 and Applebee's Restaurant for $625,000. Other commercial remodeling projects included Brookdale Chrysler Plymouth for $550,000 and Northern States Power for $275,400. The convergence of highways in Brooklyn Center makes it an attractive site for hotels and motels. Establishments now operating in the City include Americlnn, Baymont Inn, Comfort Inn, Country Inn Suites, Extended Stay America, Hilton Hotel, Holiday Inn, fnn on the Farm, and Super 8 Motel. In addition, a Motel 6 is in the planning stage. MAJOR EVENTS OF 1999 Brooklyn Center is a mature, developed suburb which is working to revitalize itself. With its affordable housing, excellent schools, beautiful parks, and convenient access, it has the potential to continue to be a vibrant community for many years to come. The revitalization of Brooklyn Center is proceeding on three tracks: replacement and renewal of the commercial areas of the City; replacement and enhancement of its aged infrastructure, that is the streets, utilities, and parks; and the reinvigoration of neighborhoods. The City continued its redevelopment effort in the Brooklyn Boulevard and 69th Avenue area with the purchase of additional property for future commercial development and roadway improvements. As part of the planned replacement of the City's infrastructure, the City is in the process of completing several major street and utility improvements. These improvements were funded by general obligation special assessment bonds sold during 1999, an operating transfer from the general fund, and funds from the capital projects funds and utility enterprise funds. About one twenty-fifth of the City's streets are reconstructed each year. It is expected that this will be a perpetual process, since at the end of twenty five years, it will be necessary to start over again with the streets that were done first. A side benefit of the street improvements has been a noticeable effort by the residents in those neighborhoods to paint, landscape, and otherwise improve their houses. In November 1997, voters approved the issuance of $7,900,000 of general obligation bonds to be used toward the construction and remodeling of City police and fire facilities. Construction of these facilities began in 1998 and continued through 1999. Due to the tight construction market and difficulties with construction, the projects won't be completed until 2000. Any cost implications of the construction difficulties are not expected to materially affect the City's financial position. The project is accounted for in the Capital Improvements Fund. g During 1999, the City continued phase finro of the 53rd Avenue Development and Linkage Project. The Project will create a new image and focus for the southeast neighborhood by creating new homes, green space, and a link to the Mississippi River. Phase one of the project required the removal of 28 housing units along 53rd Avenue which will create opportunities for a green way and a new low-traffic roadway. Phase two of the project includes new owner occupied housing developed on the land not needed for the green way. Houses valued from $150,000 to $209,000 have been built and were sold out quickly. Most buyers came from within a one mile radius of the project. This indicates the desire and capacity for move up housing within the community. The project is accounted for in the Economic Development Authority Fund. In 1997, Equitable Real Estate sold Brookdale Mall to Talisman Brookdale, LLC. Talisman Brookdale, LLC announced a large scale remodeling and expansion plan for Brookdafe Mall for 1999 and 2000. The work has subsequently been deferred until 2000 and 2001. In support of the Brookdale Mall expansion, the City received a$2,000,000 grant from the State of Minnesota during the 1997 legislative session to assist with Shingle Creek Regional Pond project costs. The Shingle Creek Regional Pond is a system of storm sewer and detention ponds which will provide storm water treatment for 670 acres of residential and commercial land in Brooklyn Center and Minneapolis. This drainage area includes the Brookdale Mall and surrounding commercial area. The project was completed in 1999 and is accounted for in the Storm Drainage Fund. During the 1998 legislative session, the City was awarded a$2,500,000 grant from the State of Minnesota for the expansion of the Earle Brown Heritage Center. The grant provided funding for a new parking lot and additional meeting space for the convention center. Construction was substantially completed in 1999. The project is accounted for in the Capital Improvements Fund. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. Internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual budget appropriation approved by the City's governing body. Activities of the General Fund and special revenue funds are included in the annual appropriated budget. Project-length t financial plans are adopted for the Capital Projects Funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) 7 is established by department for the General Fund and at the aggregate fund level for all other governmental funds that adopt annual budgets. Appropriations lapse at year-end and generally are not reappropriated in the following year's budget. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. GENERALFUND The following schedule presents a summary of general fund budgeted revenues for 2000, and actual revenues for the fiscal year ended December 31, 1999, compared to 1998. General Fund Revenues and Other Financina Sources 1999 Increase 2000 1999 1998 (Decrease) Budqet Actual Actual from 1998 Taxes $8,134,653 $8,333,440 $7,980,066 $353,374 Reserve for tax abatements (113,949) (30,322) (83,627) Licenses permits 512,050 763,960 549,067 214,893 Intergovernmental revenue 4,067,577 3,911,480 3,875,392 36,088 Charges for services 779,750 739,054 771,614 (32,560) Court fines 200,000 205,460 193,688 11,772 Miscellaneous revenues 336,000 194,353 425,319 (230,966) Total $14,030,030 $14,033,798 $13,764,824 $268,974 Revenues and other financing sources for the General Fund totaled $14,033,798 in 1999, an increase of $268,974 from the previous year. From the table above, it is apparent that the major sources of revenue available for funding of general governmental functions are taxes and intergovernmental revenue, which, when combined, provide 86% of the total revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1,307,465 and locai gavernment aid of $2,069,744. Taxes increased $353,374 primarify due to the 1999 property tax levy increase and higher lodging tax collections. In response to potential property tax abatements, the City has established a tax abatement reserve in the General Fund. Since the early 1990's, City management has estimated the potential future abatements on large commercial properties. The City increased the reserve in the General Fund by $113,949 and $30,322 in 1999 and 1998, respectively. g The balance in the reserve in the General Fund was $250,233 and $136,284 on December 31, 1999 and 1998, respectively. City management estimates that potential tax abatements not covered by the reserve would not materially affect the finances of the City. The following schedule presents a summary of general fund budgeted expenditures for 2000, and actual expenditures for the fiscal year ended December 31, 1999, compared to 1998. General Fund Exoenditures and Other Financina Uses 1999 lncrease 2000 1999 1998 (Decrease) Budget Actual Actual from 1998 General Government $2,222,724 $2,257,957 $2,133,829 $124,128 Public Safety 5,231,133 5,336,622 5,137,108 199,514 Public Works 2,651,138 1,904,205 1,955,108 (50,903) Community Service 95,030 83,295 73,066 10,229 Parks and Recreation 2,314,041 2,132,511 2,075,18Q 57,331 Economic Development 308,750 383,927 313,792 70,135 Non departmental 478,843 343,925 312,625 31,300 Admin. Services Reimb. (749,233) (670,390) (731,737) 61,347 Other Financing Uses 1,477,604 1,591,039 1,427,001 164,038 Total $14,030,030 $13,363,091 $12,695,972 $667,119 Total expenditures and otherfinancing uses in 1999 increased by a total of $667,119 over 1998, a 5.25% increase. Contributing to the increase was a$120,000 infusion into the Employee Retirement Fund which accounts far post-retirement health care costs for City employees. Additionally, legal services increased $79,632 over 1998 levels in 9999; buildings expenses increased $50,369 as the new police building became operational; convention bureau payments increased $70,135 in tandem with higher lodging revenues; and police and fire personal services expenses increased $163,309 over 1998 levels, a 4.3% increase. The General Fund also transferred $424,917 to the Special Assessment Construction Fund for infrastructure replacement. This transfer allows the City to pay cash for street improvements instead of borrowing through a bond issue for the property tax portion of the projects. The City anticipates this transfer to continue in the future as part of the planned replacement of the City's aged infrastructure. The General Fund had an excess of revenues and other financing sources over expenditures and other financing uses of $670,707 for 1999. g GENERAL FUND BALANCE As of December 31, 1999, the fund balance of the General Fund totaled $7,308,707. This ending fund balance is the equivalent of approximately six months of expenditures for the 2000 budget. Property taxes and intergovernmental revenue represent 82% of the budgeted general fund revenue for 2000. The State of Minnesota has structured city finances so most of these revenues are received in the second half of the fiscal year. Minnesota cities typically receive as little as 10% of their totaf revenues in the first six months of the year. In recognition of this fact, a portion of the fund balance is being designated for working capital. The Financial Management Policies adopted by the City Cauncil on June 8, 1992 establish a formula for determining a minimum level of fund balance to be maintained in the General Fund. Major elements of the formula include coverage of assets not readiiy convertible to t cash and a provision for working capital equal to 45% of the next year's General Fund budget. The Financial Management Policies go on to state that no more that 50% of any year's surplus over the minimum level shall be committed to other uses in that year. Calculation of this formula on the fund balance in the General Fund as of December 31, '(998, revealed a surplus of $1,451,220 above the minimum r�quirements which is avaifable for other uses. This allowed the transfer of up to $725,610 to other funds. The City Council passed a resolution transferring $475,000 of surplus funds from the General Fund to the Capital Improvements Fund for future government building and park improvements and $225,000 to the Special Assessment Construction Fund forfuture street improvements. These appear in the financia! statements as equity transfers since they relate to the prior year's surplus. EARLE BROWN FARM TAX INCREMENT DISTRICT This tax increment financing (TIF) district had a deficit fund balance as of December 31, 1999. It is caused by a series of reductions in property tax class rates made by the State of Minnesota which have eroded the revenue base of TIF districts throughout Minnesota. Borrowing from other City funds is required in order for the district to meet its obligations. If the current situation continues, the district will experience annual deficits. The TIF district will make its last transfer to the Debt Service Funds in the year 2003. It has the authority to continue to exist and collect tax increments through the year 2008. Two years of tax collections beyond 2003 should be sufficient to repay all internal borrowing. ENTERPRISE OPERATIONS The City's enterprise operations are composed of seven separate and distinctive activities: Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary Sewer utility, and Storm Drainage utility. 10 The liquor operation is composed of three retail stores. Two stores are leased and one is owned. {n 2000, a leased store and the currently owned store will be consolidated into a new leased location, resulting in two remaining stores. The consolidation will negatively impact earnings in 2000. It is hoped that the change will increase profitability in the long term; the stores have been consistently profitable throughout their history. Centerbrook Golf Course is a nine-hole, par three golf course owned and operated by the City. Green fees have been increasing each year to keep pace with inflation. The interfund loan is being repaid over a planned schedule covering twenty years. The Earle Brown Heritage Center is a pioneer farmstead which has been historically preserved and restored as a modern mu(tipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1,000 people in either banquet or theater style. A new caterer began providing food services in the spring of 1999. The lnn on the Farm is a bed and breakfast with ten rooms available. A$2,500,000 grant from the State of Minnesota is providing for additional parking and meeting space. The City's policy for this enterprise is to set fees and user charges at a level which allows the operations to break-even excluding depreciation on contributed assets. That standard was met in 1996 and 1997, but not in other years. It is hoped that the new space will improve results. The dwindling supply of landfill space for the disposal of garbage has become a major concern in Minnesota. State and county mandated goals for the diversion of garbage to recycling programs took effect in 1989. In response, the City opened a Recycling and Refuse Fund as an enterprise fund. So far it is operating a recycling program. Expansion into garbage collection will take place when there is clear advantage to be achieved by it. Goals for the recycling program are being met. The Water and Sanitary Sewer utilities are largely developed and already reach all parts of the City. Rates for both water and sanitary sewer are reviewed annually and are increased as needed to cover inflation and the need for new capital outlays. Three-fourths of the sewer operating expenses are fees paid to the Metropolitan Council Environmental Services for sewage treatment. Planned rate increases should be sufficient to keep them both profitable. Mains and customer service lines are being replaced as needed concurrent with the City's 25-year program for reconstructing streets. During the 1980's, the State of Minnesota passed legislation that requires cities to take greater responsibility for controlling storm water runoff. In response to this, the City created a Storm Drainage Utility Fund. lts fee structure is based upan the amount of water discharged into the storm sewer system. Construction of storm sewer lines are being made concurrent with the City's 25-year program for reconstructing streets. INTERNAL SERVICE FUNDS The Central Garage Fund was established to own and maintain all operating equipment of the City valued over $10,000. At present, the fund maintains some 152 pieces of rolling 11 t and non rolling stock equipment with a net book value of $3,026,809. Equipment maintenance, repair, fuel, and replacement costs are provided from rental rates which the Central Garage Fund charges City operating departments for the use of the equipment. The Public Employees Retirement Fund was established to provide certain health care benefits for qualifying City employees who retire before age 65. The fund had assets of $1,393,362 and an estimated liability of $1,371,240 at the 1999 year-end. A transfer of $120,000 was made from the General Fund in 1999 to offset the increased liability resulting from rising health insurance premiums. DEBT ADMINISTRATION At December 31, 1999, the City had thirteen debt issues outstanding. These issues include $10,915,000 of general obligation bonds, $5,920,000 of special assessment debt with government commitment, $1,230,000 of general obligation revenue bonds and $10,420,000 of general obligation tax increment bonds. The City maintained its A-1 rating from Moody's Investors Service. The City issued $1,585,000 of bonds supported solely by special assessments during 1999. The special assessment bond issue provided financing for various improvement projects in the City. CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to ensure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 118A. The yield on investments ranged from a high of 7.89 percent to a low of 4.34 percent. Interest earned during 1999 amounted to $963,842 compared to $2,309,101 during 1998. Changes in the fair value of investments reduced 1999 earnings by $839,126, whereas they had increased the 1998 earnings by $198,243. The City has historically held all investments to maturity. Therefore unless the City liquidates the investment(s) prior to maturity, it is expected that the in fair market value is temporary and will be reversed in future periods. Aside from the changes in the fair value of investments, 1999 interest earnings were lower as a result of less money being available for investment. Proceeds of prior year's bond sales were spent on projects during 1999. The City adopted a written investment policy in 1990 and adopted an updated policy in 1997. The policy's objectives are to minimize credit and market risk, provide needed liquidity, and maintain a competitive yield on the portfolio. All deposits were either insured by federal depository insurance or collateralized. Investment securities are held in a custody arrangement with a bank trust department. All 12 1 investments are listed in the lowest custodial credit risk category, Category 1. Cash and investment balances from all funds are combined and invested to the extent available in authorized investments. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. The City has not purchased any collateralized mortgage obligations, derivatives, or strip investments. The practice is to hold investments to maturity. In the recent past, the City has not needed to use any short-term debt and does not anticipate such a need in the future. Of the City's portfolio as of December 31, 1999, 33% matures within 1 year, another 22% in the second year, 9% in the third year, 21 in the fourth year, 3% in the fifth year, and the last 12% in the sixth through the tenth years. RISK MANAGEMENT The City insures all significant risk. A schedule of such insurance is included in the Statis#ical Section. INDEPENDENT AUDIT The Cit Charter and State Statutes require the Council to provide for an audit of the Y financial transactions of the City. Deloitte Touche LLP has been retained for that purpose and their unqualified opinion has beer� included in this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City af Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31, 1998. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmentaf unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. 13 ACKNOWLEDGMENTS I want to express my appreciation to the Finance Department staff for the assistance provided during the audit. I also wish to express our appreciation to the City Manager, the Mayor, and members of the City Council for their continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, F� Charles Hansen Director of Finance Robert Sundberg Assistant Director of Finance t t 14 ertl cate o A hl m nt c e�e e r^ or Exce�_en�e ln Flnancla_ 1 I�e g 1 Presented to Cit of Broo�� n Center, y y Minnesota 1 For its Comprehensive Annual Financial F�eport f or the Fiscal Year Ended December 31, 1998 A Certificate of Achievement for F�cellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. �C�. oFRi� UF TFIE 9�, 4"� /Z� �uNiTEO STATES`�y� u�i ANU N CANA�A co�or�TaN President ?o,; CNICAG�� Executive Director De oitte Touche Deloitte Touche LLP Telephone: (612) 397-4000 400 One Financial Plaza Facsimile: (612) 397-4450 120 South Sixth Street Minneapolis, Minnesota 55402-1844 INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Brooklyn Center, Minnesota We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota, as of December 31, 1999 and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the management of the City of Brooklyn Center, Minnesota. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City of Brooklyn Center, Minnesota at December 31, 1999, and the results of its operations and the cash f7ows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City of Brooklyn Center, Minnesota. These financia] statements and schedules are also the responsibility of the management of the City of Brooklyn Center, Minnesota. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the general purpose financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2000, on our consideration of the City of Brooklyn Center's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. /�-��ll� /��-1�.��_ L May 17, 2000 DeloitteTouche Tohmatsu 16 City of Brooklyn Center, Minnesota GENERAL PURPOSE FINANCIAL STATEMENTS, The general purpose financial statements are intended to provide a financial overview of municipal operations. These reports are at a summary level and include those data needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in the financial planning process. 1 1 17 City of Brookiyn Center All Fund Types and Account Groups COMBINED BAl.ANCE SHEET December 31, 1999 Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents (Note 2) $1,218,275 $497,770 $4,544,919 $1,407,861 Investments (Notes 1F, 2) 7,117,968 2,902,799 1,123,361 8,210,074 Receivables: Accounts 66,188 12,188 2,062 Delinquent taxes (Note 1J) 158,445 7,481 Special assessments 8,554 3,471,184 480,544 Due from other funds (Note 9) 220,122 86,219 255,895 Due from other governments 140,859 1,991 364,251 Inventories and supplies (Note 1G) Prepaid expenses Advances to other funds (Note 9) 105,074 1,669,412 Fixed assets (net of accum depr. where applicable) (Notes 1 C, 3) Other Debits: Amount available in Debt Service Funds Amount to be provided for General Long-Term Debt Total Assets and Other Debits $9,035,485 $3,508,448 $9,139,464 $12,390,099 LIABILITIES, EQUITY AND OTHER CREDITS Liabilities: Accounts payable $300,707 $59,436 $1,639 $830,468 Contracts payable 155,334 Due to other funds (Note 9) 17,236 Accrued salaries and wages 374,450 6,584 5,508 Accrued vacation sick pay (Note 1 H) 634,389 18,390 Accrued health insurance Accrued interest payable Advances from other funds (Note 9) 698,143 Deferred revenue (Note 1J) 417,232 7,481 3,471,184 844,795 General obligation bonds payable (Note 6) Other long-term liabilities (Note 6) Special assessment bonds with governmental commitment (Note 6) Revenue bonds payable (Note 6) Total Liabilities 1,726,778 807,270 3,472,823 1,836,105 Equity and Other Credits: Contributed capital (Note 4) Investment in general fixed assets Retained earnings: (Notes 8 10) Reserved Unreserved Fund Balances: (Notes 8 10) Reserved 105,074 977,619 5,666,641 1,669,412 Unreserved: Designated 5,937,168 Undesignated 1,266,465 1,723,559 8,884,582 Total Equity and Other Credits 7,308,707 2,701,178 5,666,641 10,553,994 Totai Liabilities, Equity and Other Credits $9,035,485 $3,508,448 $9,139,464 $12,390,099 (See notes to financial statements) 18 EXHIBIT 1 Totals Proprietary Fund Types Account Groups (Memorandum Only) General General Internal Fixed Long-Term December 31, Enterprise Service Assets Debt 1999 1998 $910,943 $745,358 $9,325,126 $11,134,244 4,023,202 4,346,626 27,724,030 29,819,514 1,395,703 21,493 1,497,634 1,365,295 165,926 146,907 170,253 4,130,535 3,256,003 562,236 556,573 14,039 521,140 467,473 441,342 12,572 453,914 362,258 125,143 125,143 126,079 1,774,486 1,854,456 44,575,979 3,026,809 $23,361,414 70,964,202 60,372,176 $5,666,641 5,666,641 5,113, 659 21,625,834 21,625,834 22,695,472 $51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,109 $953,402 $29,186 $2,174,838 $1,681,895 85,157 240,491 307,352 545,000 562,236 385,000 54,497 8,981 450,020 438,361 83,774 28,522 765,075 730,362 1,369,891 1,369,891 1,229,333 26,467 26,467 29,831 1,076,343 1,774,486 2,026,028 4,740,692 3,521,604 $21,335,000 21,335,000 23,015,000 168,906 37,475 206,381 279,339 5,920,000 5,920,000 4,740,000 1,230,000 1,230,000 1,400,000 4,223,546 1,436,580 27,292,475 40,795,577 39,784,105 22,933,780 3,174,526 26,108,306 25,258,665 $23,361,414 23,361,414 17,043,726 409,364 409,364 392,874 24,089,914 3,541,752 27,631,666 24,472,065 8,418,746 15,387,336 5,937,168 5,726,226 11,874,606 9,205,112 47,433,058 6,716,278 23,361,414 103,741,270 97,486,004 $51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,709 19 City of Brooklyn Center EXHIBIT 2 All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1999 Totals Special Debt Capital (Memorandum Oniy) Revenues General Revenue Service Projects 1999 1998 Taxes and speciai assessments $8,219,491 $3,233,790 $690,538 $217',306 $12,361,125 $11,202,457 Licenses and permits 763,960 763,960 549,067 Intergovernmentai 3,911,480 1,663,648 308,310 2,718,728 8,602,166 4,936,343 Charges for services 739,054 739,054 771,614 Court fines 205,460 205,460 193,688 Investment eamings 346,382 200,873 137,511 502,728 1,187,494 1,586,399 Change in fair value of investments (158,708) (97,456) (32,598) (288,853) (577,615) 146,180 Saie of property 2,411,987 2,411,987 Miscellaneous 6,679 140,367 21,004 168,050 439,013 Total Revenues 14,033,798 7,553,209 1,103,761 3,170,913 25,861,681 19,824,761 Exoenditures Current: Generai government 2,257,957 2,458 2,260,415 2,134,001 Public safety 5,336,622 17,791 5,354,413 5,185,965 Publicworks 1,904,205 1,904,205 1,955,108 Communiry services 83,295 83,295 73,066 Parks and recreation 2,132,511 100,954 2,233,465 2,148,201 Economic development 383,927 2,280,977 2,664,904 893,522 Non departmental 343,925 343,925 312,625 Administrative Services Reimbursement (670,390) (670,390) (731,73� CapRal outlay 3,522,148 10,316,554 73,838,702 6,453,906 Debt service: Principal retirement 2,085,000 2,085,000 1,285,000 interest and fiscal charges 1,387,544 1,387,544 1,285,460 Total Expenditures 11,772,052 5,924,328 3,472,544 10,316,554 31,485,478 20,995,117 Excess or Deficiency(-) of Revenues Over Expenditures 2,261,746 1,628,881 (2,368,783) (7,145,641) (5,623,797) (1,170,356) t Other Financina Sources or Usesf-) Proceeds from sale of bonds 1,585,000 1,585,000 2,670,000 Operating transfers In 233,751 2,921,765 499,917 3,655,433 3,646,198 Operating transfers out (1,591,039) (2,113,751) (3,704,790) (4,071,198) Total Other Financing Sources or Uses(-) (1,591,039) (1,880,000) 2,927,765 2,084,917 1,535,643 2,245,000 F�cc�ss or Deficiency(-) of Revenues and Other Sources Over Expenditures and OtF�er Uses 670,707 (251,119) 552,982 (5,060,724) (4,088,154) 1,074,644 Fund Balances January 1 7,338,000 2,952,297 5,113,659 14,914,718 30,318,674 29,244,030 Equity Transfers In (Out) (700,000) 700,000 Fund Balances December 31 $7,308,707 $2,701,178 $5,666,641 $10,553,994 $26,230,520 $30,318,674 t (See notes to financiai statements) 20 EXHIBIT 3 City of Brooklyn Center General and Speciai Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1999 General Fund Special Revenue Funds Actual Over Actual Over Under(-) Under(-) Budget Actual Budget Budget Actuai Budget Revenues Taxes and speciai assessments $8,214,083 $8,219,491 $5,408 $2,857,761 $3,233,790 $376,029 Licenses and permits 418,628 763,960 345,332 Intergovernmental 3,894,372 3,911,480 17,108 1,718,113 1,663,648 (55,465) Charges for services 862,206 739,054 (123,152) Court fines 204,000 205,460 1,460 Investment earnings 280,000 346,382 66,382 150,000 200,873 50,873 Change in fair value of investments (158,708) (158,708) (97,456) (97,456) Sale of property 2,420,000 2,411,987 (8,013) Miscellaneous 12,000 6,679 (5,321) 24,000 140,367 116,367 Total Revenues 13,685,289 14,033,798 148,509 7,170,874 7,553,209 382,335 Expenditures General government 2,357,773 2,257,957 (99,816) 2,458 2,458 Public safety 5,433,832 5,336,622 (97,210) 26,987 26,987 Publicworks 2,016,754 1,904,205 (112,549} Community services 84,910 83,295 (1,615) Parks and recreation 2,232,090 2,132,511 (99,579) 100,954 100,954 Economicdeve{opment 385,250 383,927 (1,323) 6,328,461 5,793,929 (534,532) Non-departmental 534,653 343,925 (190,728) Admin. Services Reimbursement (737,487) (670,390) 67,097 Total Expenditures 12,307,775 11,772,052 (535,723) 6,328,461 5,924,328 (404,133) Excess or Deficiency(-) of Revenues Over Expenditures 1,577,514 2,261,746 684,232 842,413 1,628,881 786,468 Other Financina Sources or Uses(-1 Operating transfers in 1,873,609 233,751 (1,639,858) Operating transfers out (1,591,049) (1,591,039) 10 (3,023,609) (2,113,751) 909,858 Total Other Financing Sources or Uses(-) (1,591,049) (1,591,039) 10 (1,150,000) (1,880,000) (730,000) Excess or Deficiency(-) of Revenues and Other Sources Over Expenditures and Other Uses (13,535) 670,707 684,242 (307,587) (251,119) 56,468 Fund Balances January 1 7,338,000 7,338,000 2,952,297 2,952,297 Equity Transfer In (Out) (700,000) (700,000) Fund Balances December 31 $7,324,465 $7,308,707 ($15,758) $2,644,710 $2,701,178 $56,468 (See notes to financial statements) 21 City of Brooklyn Center EXHIBIT 4 Proprietary Fund Types COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 Internal Totals Enterprise Service (Memorandum Only) Operatina Revenues Funds Funds 1999 1998 Sales and user fees $12,355,755 $1,037,426 $13,393,181 $11,731,365 Cost of sales 3,285,487 3,285,487 2,880,024 Net Operating Revenues 9,070,268 1,037,426 10,107,694 8,851,341 Oaeratina Expenses Personal services 2,942,972 425,870 3,368,842 2,895,627 Supplies 363,390 191,104 554,494 539,041 Otherservices 2,861,174 57,008 2,918,182 2,714,872 Insurance 54,980 32,672 87,652 83,714 Utilities 322,062 3,559 325,621 320,038 Rent 236,172 236,172 134,107 Depreciation 1,065,311 506,396 1,571,707 1,422,134 Total Operating Expenses 7,846,061 1,216,609 9,062,670 8,109,533 Operating Income (Loss) 1,224,207 (179,183) 1,045,024 741,808 Nonoperatinq Revenues or Expenses Investmentearnings 298,676 279,611 578,287 560,125 Change in fair value of investments (134,551) (127,107) (261,658) 52,062 Special assessments 291,475 291,475 22,767 Intergovernmental 1,092,809 1,092,809 907,191 Other revenue 7,454 7,454 56,688 Interest and fiscal agent fees (90,904) (90,904) (123,502) Total Net Nonoperating 1,464,959 152,504 1,617,463 1,475,331 Income Before Operating Transfers 2,689,166 (26,679) 2,662,487 2,217,139 Operating Transfers In (Out) (70,643) 120,000 49,357 425,000 Net Income 2,618,523 93,321 2,711,844 2,642,139 Depreciation on contributed assets that reduces contributed capital 318,420 145,827 464,247 446,750 Retained Earnings January 1 21,562,335 3,302,604 24,864,939 21,776,050 Retained Earnings December 31 $24,499,278 $3,541,752 $28,041,030 $24,864,939 (See notes to financia( statements) 22 1 City of Brookiyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1999 internal Totals Enterprise Service (Memorandum Only) Cash flows from operatina activities: Funds Funds 1999 1998 Operating income (loss) $1,224,207 ($179,183) $1,045,024 $741,808 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1, 065, 311 506,396 1,571,707 1,422,134 Changes in assets and liabilities: Receivables (82,357) (14,696) (97,053) 176,983 Inventories (83,669) (7,987) (91,656) (15,787) Prepaid expenses 936 936 15,960 Payables 396,561 (51,035) 345,526 237,688 Accrued expenses (40,016) 1,271 (38,745) 58,336 Accrued interest payable (3,364) (3,364) (3,163) Accrued health insurance liability 140,558 140,558 11,104 Other nonoperating income 1,391,738 1,391,738 986,646 Net cash provided by operating activities 3,869,347 395,324 4,264,671 3,631,709 Cash flows from noncapital financinq activities: Proceeds from borrowings on long-term debt 225,208 Proceeds from borrowings due to other funds 160,000 160,000 Principal payments on long-term debt (56,302) (56,302) Principal payments on advance from other funds (79,969) (79,969) (78,071) Interest paid on advance from other funds (2,593) (2,593) (4,691) Interest paid on due to other funds (23,233) (23,233) (45,211) Operating transfers in (out) (70,643) 120,000 49,357 425,000 Net cash (used for) provided by noncapital financing activities (72,740) 120;000 47,260 522,235 Cash flows from caoital and related financinp activities: Capital contributions 1,234,880 1,234,880 1,387,582 Acquis+tion and construction of capita{ assets (4,980,286) (786,750) (5,767,036) (5,932,417) Principal paid on revenue bonds (170,000) (170,000) (165,000) Interest paid on revenue bonds (65,078) (65,078) (73,600) Net cash used for capital and related financing activities (3,980,484) (786,750) (4,767,234) (4,783,435) Cash flows from investinp activities: Investments purchased (2,370,458) (2,561,018) (4,931,476) (7,453,317) Investments sold or matured 2,052,871 2,326,995 4,379,866 6,210,378 Investmentearnings 298,676 279,611 578,287 560,125 Net cash (used for) provided by investing activities (18,911) 45,588 26,677 (682,814) Netdecrease in cash and cash equivalents (202,788) (225,838) (428,626) (1,312,305) Cash and cash equivalents at beginning of year 1,113,731 971,196 2,084,927 3,397,232 Cash and cash equivalents at end of year $910,943 $745,358 $1,656,301 $2,084,927 Non cash items: Change in fair value of investments $134,551 $127,107 $261,658 ($52,062) t (See notes to financial statements) 23 Gity of Brooklyn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1999 Note 1: Summarv of �ianificant Accountinq Policies The City of Brooklyn Center, Minnesota (City) was formed and operated pursuant to applicable Minnesota laws and statutes. The governing body consists of a five- member City Council elected at large to serve four-year staggered terms. A. Reportina Entit� The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally t separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the t City because of the significance of their operational or financial relationships with the City. BLENDED COMPONENT UNITS: t Blended component units, although legally separate entities, are, in substance, part of the government's operations and data from these units are combined with data of the primary government. Economic DevelopmentAuthority (EDA) and Housing and RedevelopmentAuthority (HRA) in and for the City of Brooklyn Center: The governing boards are the City Council: The Council reviews and approves EDA and HRA tax levies, and the City provides major community development financing for EDA and HRA activities. Debts issued for EDA and HRA activities are City general obligations. Although the EDA and HRA are legally separate from the City, they are reported as if they were part of the City because the governing boards are the same.. Complete financial statements for the EDA and HRA may be obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. JO(NT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS: The City has several agreements with governmental and other entities which provide reduced costs, better service, and additional benefits to the participants. These programs, in which the City participates, are listed below and amounts recorded within the current year financial statements are disclosed. 24 1 t Note 1: Summarv of Sianificant Acco�antina Policies lcont'dl Local Government Information Systems Association (LOGIS): This consortium of approximately 24 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 the Board, and the Consortium is fiscally independent of the City. The total amount recorded within the 1999 financial statements of the City was $325,962 for services provided which is allocated to the various funds based on applications. Complete financial statements 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 government entities. The total 1999 employee insurance benefits expense, including health and life insurance, recorded within the financial statements was $602,924. Complete financial statements may be obtained from DCA, Inc. located at 400 DCA Center, 13100 Wayzata Boulevard, Minnetonka, MN S5305-1840. OTHER: The Brooklyn Center Fire Department Relief Association (Association): The Association is organized as a nonprofit organization, legafly separate from the City, by its members to provide pension and other benefits to such members in accordance with Minnesota Statutes. Its board of directors is appointed by the membership of the Association and not by the City Council and the Association issues its own set of financiai statements. All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the Association, and are only reviewed by the City and the Association pays benefits directly to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this function. Because the Association is fiscally independent of the City, the financial statements of the Association have not been included within the City's reporting entity. (See Note 15 for disclosures relating to the pension plan operated by the Association.) The City's portion of the costs of the Association's pension benefits is included in the General Fund under public safety. Complete financial statements for the Association may be obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430. 25 1 Note 1: Summarv of Sianificant Accountina Policies (cont'd1 B. Fund Accounti�a The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund types and finro broad fund categories as follows: GOVERNMENTAL FUNDS: General Fund The General Fund is the general operating fund of the City. It is used to account for all financial reso.urces except those required to be accounted for in another fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capita! Projects Funds Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capita( facilities, other than those financed by proprietary funds. t PROPRIETARY FUNDS: Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis. 26 Note 1: Summarv of Sianificant Accountina Policies lcont'dl C. Fixed Assets and Lona-Term Liabilities The accounting and reporting of fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement, which means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Public domain general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have been excluded from general fixed assets, as such items are immovable and of value only to the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if historical cost is unavailable. Donated fixed assets are valued at their estimated market value as of the date donated. The fixed assets of the proprietary funds are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Water Sewer Mains Lines 100 years Buildings and Structures 20-40 years Water Wells and Storage Tanks 15-50 years Sewer Lift Stations 15-40 years Machinery and Equipment 5-20 years Furniture and Fixtures 5-20 years Public Utility assets financed by special assessments are recorded as contributions. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the governmental funds. 27 Note 1: Summarv of Siqnificant Accountina Policies (cont'dl All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations of these funds are included on the balance sheet. Fund equity (e.g., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund-type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. D. Basis of Accountina t Governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are susceptible to accrual include taxes, special assessments, intergovernmental revenues, charges for services, and investment earnings. Major revenues that are not susceptible to accrual include licenses and permits, fees, and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. Interest on special assessments is recognized as revenue when due, net of delinquencies. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long-term debt which is recognized when due. All proprietary funds are accounted for usin the accrual basis of accountin Their 9 9 revenues are recognized when they are earned, and expenses are recognized when they are incurred. Unbilled Water and Sewer Fund utility service receivables are recorded at year-end. The City applies all applicable Financial Accounting Standards Board (FASB) pronouncements issued prior to November 30, 1989 in accounting for its proprietary operations, E. Budaets and Budaetarv Accountina The City follows these procedures establishing the budgetary data reflected in the �nancial statements: 1. In August, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the following January. The operating budgets include expenditures and the means of financing them. 2. The County mails individual property tax notices showing the taxes which woufd result from the proposed budgets of all taxing units to each property in November. 28 Note 1: Summarv of Sianificant Accountina Policies lcont'd) 3. Public hearings are conducted to obtain taxpayer comments. 4. The budgets are legally enacted through passage of a resolution by the City Council in the month of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within the General Fund. A transfer of budgeted amounts within individual departments must be authorized by the city manager. 6. Su lemental a ro riations durin the ear ma onl be made b the Ci p p P p p 9 Y Y Y Y t Y Council. These amounts must be financed by funds from the contingency reserve set up in the General Fund or by additional revenues. 7. All budget amounts lapse at the end of the year to the extent they have not been expended. 8. Formal budgetary integration is employed as a management control device during the year for all governmental funds with the exception of Debt Service Funds and Capital Pro�ect Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and project-length budgets. 9. Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all governmental funds except for Debt Service Funds and the project-length Capital Project Funds. 10. Budgetary control is maintained at the department level for the General Fund and at the fund level for all other governmental funds that adopt annual budgets. 11. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual and aggregate amendments were not material in relation to the original appropriations. F. Investments Cash balances from all funds are combined and invested to the e�ctent available in authorized investments (see Note 2). Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Cash and investments are stated at fair value. All commercial paper and certificates of deposit with a maturity of one year or less when purchased are 2g Note 1: Summarv of Sianificant Accountinq Policies (cont'dl stated at amortized cost which approximates market value. All hi hl li uid 9 Y q unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. t G. Inventorv Inventories in the proprietary funds are valued at cost, using the weigh#ed average method in the Municipal Liquor Fund and the first-in/first-out (FIFO) method in the other proprietary funds. The costs of govemmental fund type supplies are recorded as expenditures when purchased. H. Accrued Vacation and Sick Pav The City pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expenditure/expense as it is earned. I. Fund E ui Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers, or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balance represents tentative plans for future use of financial resources. J. Prone�tv Tax Property tax levies are set by the City Council in December of each year, and are certified to Hennepin County for collection in the following year. In Minnesota, counties act as collection agents for' all property taxes. The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal properly taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts finro times a year, in July and December. 30 Note 1: Summarv of Sianificant Accoiantina Policies �cont'd) Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not known to be available to finance current expenditures. In addition, at December 31, 1999, the City has recorded $250,233 in deferred revenue for the General Fund for estimated property tax abatements on properties whose value is under appeal that are anticipated to be repaid to the County in future years. K. Total Columns on Combined Statements Total columns on the Combined Statements are captioned memorandum only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. L. Reclassification Certain account balances were reclassified for the year ended December 31, 1998. These reclassifications, which did not require a restatement of fund balance, were adjusted for comparability to the financial statements for the year ended December 31, 1999, and must be considered when comparing the financial statements of this report with those of prior reports. The chan e involves the reclassification of water meters urchased in the Water 9 P Utility Fund from cost of sales to supply expense. The reclassification increases 1998 sales and supply expense amounts by $50,435. M. New Accountina Pronouncement In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. This statement is effective for the City for the year ending December 31, 2003. Statement No. 34 will affect the presentation of the City's annual financial report. The statement also requires the City to utilize the economic resources measurement focus as well as the accrual basis of accounting. The City has not yet determined the effects Statement No. 34 will have on its financial statements. 31 Note 2: Cash and Investmen#s A. Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council. All such depositories are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the le al investments described below, as well as t 9 certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At December 31 1999 the car in amount of he i's deman it ry g t. C ty d depos s was $(203,887) and the bank balance was $270,792. Of the bank balance, $100,000 was covered by federal depository insurance (risk category A) and the remainder was covered by collateral held in the pledging bank's trust department in the City's name (risk category B). Risk Cateaorv A Insured or collateralized by securities held by the City or its agent in the City's name. B Collateralized with securities held by the pledging institution's trust department in the City's name. C Uncollateralized or collateralized with securities held by the pledging institution's trust department or agent, but not in the City's name. 32 Note 2: Cash and lnvestments (cont'dl B, investments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: a Direct obligations or obligations guaranteed by the United States or its agencies. b Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. c General obligations of the State of Minnesota or any of its municipalities. d Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System. e Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with 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. g Future contracts sold under authority of Minnesota Statutes 471:56, subdivision 5. The City has not purchased any collateralized mortgage obligations, derivatives, or strip investments. Investments are typica(ly held to maturity. Of the City's portfolio as of December 31, 1999, 33% matures within 1 year, another 22% in the second year, 9% in the third year, 21 in the fourth year, 3% in the fifth year, and the last 12% in the sixth through the tenth years. 33 Note 2: Cash and Investments (cont'dl The City's investments are categorized below to give an indication of the level of custodial credit risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the City's name. In accordance with GASB Statement No. 3, investments in a money market fund are not categorized as to custodial credit risk. Balances at December 31, 1999: Carrying Credit Risk Category Amount/ Securities Type 1 2 3 Fair Value Investments Cate orized: 9 U.S. Government $12,304,330 $12,304,330 Federal agencies 10,736,097 10,736,097 Commercial paper 6,181,184 6,181,184 $29,221,611 29,221,611 (nvestments Not categorized: Money market funds 5,110,594 Certificates of deposit $$2,786 Cash in escrow for refundirig bonds 1,550,740 Tota1 Investments 36,765,731 Cash 283,425 Total Cash, Cash Equivalents, and Investments $37,049,156 34 Note 2: Cash and Investments (cont'dl SUMMARY OF CASH AND INVESTMENTS Balances at December 31, 1999 Investments: Carrying Amount/ Investment Tvpe Interest Rate Maturity Fair Value U.S. Treasury notes 4.25 7.75% 2000 2003 $12,304,330 Federal Home Loan Mortgage bonds 5.125 6.5% 2000 2008 6,385,677 Federal National Mortgage Association bonds 5.75 7.1 2000 2009 4,350,420 Commercial paper Various 2000 6,181,184 Total lnvestments $29,221,611 Deposits: Minnesota Municipal Money Market Fund, Insight Investment Management, Minneapolis, Minnesota 4,270,183 Dreyfus General Money Market Fund, Marquette Trust, Minneapolis, Minnesota 765,427 Money Market Fund, Norwest Bank, Minnesota 70,236 Money Market Fund, First Trust, St. Paul, Minnesota 4,748 Certificates of Deposit 882,786 Bond Refunding Escrow Norwest Bank 1,550,740 Marquette Bank Brookdale, Brooklyn Center, Minnesota 270,792 Change funds 12,633 Total Deposits $7,827,545 Total Cash, Cash Equivalents, and Investments $37,049,156 From Exhibit 1, COMBINED BALANCE SHEET Cash and cash equivalents $9,325,126 Investments 27,724,030 $37,049,156 35 Note 3: Fixed Assets Changes in the General Fixed Assets Account Group during 1999 were as foilows: Balance Balance Jan. 1, 1999 Additions Disposals Dec. 31, 1999 Land $2,473,864 $2,473,864 Buildings Improvements 8,776,453 $6,090,518 $150,247 14,716,724 Park Improvements 3,354,926 276,113 30,798 3,600,241 Furniture Fixtures 1,360,475 1,360,475 Departmental Equipment 1,078,008 205,357 73,255 1,210,110 TOTAL GENERAL FIXED ASSETS $17,043,726 $6,571,988 $254,300 $23,361,414 The following is a summary of proprietary fund-type fixed assets at December 31, 1999: I nternal Enterprise Service Funds Funds Land $3,299,529 Land Improvements 501,671 Buildings Improvements 20,400,437 Mains Lines 30,512,514 Departmental Equipment 1,476,073 $5,583,067 Total 56,190,224 5,583,067 Less accumulated depreciation (11,614,245) (2,556,258) Net $44, 575, 979 $3, 026, 809 Note 4: Contributed Capital During 1999 contributed capital changed by the following amounts: Internal Enterprise Service Funds Funds Additions: Improvement construction $1,313,888 Deductions: Depreciation on contributed assets (318,420) ($145,827) Net change 995,468 (145,827) Contributed Capital, January 1, 1999 21,938,312 3,320,353 Contributed Capital, December 31, 1999 $22,933,780 $3,174,526 36 Note 5: Oneratina Leases During 1999, the City leased space for the operation of finro of its three municipal liquor stores. One of these is a lease renewed on a year by year basis. This lease was to end in March 2000, but has subsequently been extended for one year to March 2001. The other is a noncancelable two year lease ending in May 2000, which has been subsequently extended through July 2000. This lease will be allowed to expire as the store is expected to be moving to a new location in August 2000. A ten-year lease with an option of an additional ten years has been signed for the new location; the effective start date is dependent on construction completion. These leases provide for minimum rent payments, plus a pro-rata share of common area expenses. In addition, the latter lease requires additional lease payments if agreed upon revenue thresholds are attained. Total rental expense under the lease agreements for the years ended December 31, 1999 and 1998 was $69,922 and $55,003, respectively. Future minimum rent payments under noncancelable leases are as follows: Year Endina Amoun# 2000 78,179 2001 98,169 2002-2004 91,350/yr. 2005 95,025 2006-2009 100,170/yr. 2010 58.433 1.004.536 The Earle Brown Heritage Center Fund, which operates as an enterprise fund, leased space to two tenants in 1999. One lease is for a ten year period commencing January 1, 1999. In addition, another tenant has signed two separate leases which are both renewable automatically for one year terms. The first lease began April 15, 1999 and is for $19,200 per year. The second lease period commenced January 1, 2000 and is for $3,600 per year. Payment from this tenant will be in the form of audio/visual equipment trade-out. This equipment will be used by the Heritage Center for client events. Rental revenues and expenditures under the lease agreements were as follows: 1999 1998 Rental Revenues 51,538 30,797 Rental Expenditures 32,338 52,587 Future minimum rentals to be received are as follows: Cash Trade-Out Year Endina Amount Amount 2000 37,338 22,800 2001-2002 38,625/yr. 2003-2004 39,912/yr. 2005-2006 41,200/yr. 2007-2008 42,488/yr. 37 Note 6: Lona-Term Debt The City's long-term debt includes general obligation bonds, tax increment bonds, and special assessment improvement bonds, all of which are recorded in the General Long- Term Debt Account Group. In addition, the City issued storm sewer revenue bonds which are recorded as a liability in the Storm Drainage Fund. The following is a summary of bond transactions for the year ended December 31, 1999: General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total Bonds payable January 1 $11,430,000 $11,585,000 $4,740,000 $1,400,000 $29,155,000 Bonds issued 1,585,000 1,585,000 Bonds retired 515,000 1,165,000 405,000 170,000 2,255,000 Bonds payable December 31 $10,915,000 $10,420,000 $5,920,000 $1,230,000 $28,485,000 The annual requirements to amortize all outstanding debt as of December 31, 1999, including interest of $7,267,874, are as follows: General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total 2000 $2,579,981 $1,875,554 $766,972 $239,110 $5,461,617 2001 1,032,651 1,969,409 929,966 239,950 4,171,976 2002 1,030,749 1,973,893 999,727 240,100 4,244,469 2003 1,027,356 1,985,412 873,614 239,540 4,125,922 2004 1,032,318 2,012,303 836,763 238,250 4,119,634 2005 on 7,248,749 3,395,000 2,749,297 236,210 13,629,256 $13,951,804 $13,211,571 $7,156,339 $1,433,160 $35,752,874 If special assessments are not adequate to retire the outstanding debt, the City's full faith and credit are pledged for their redemption. The general obligation, tax increment, and storm sewer revenue bonds are backed by the full faith and credit of the City. There are a number of limitations contained in the various bond indentures. The City is in compliance with all requirements of the indentures. 38 Note 6: Lona Term Debt lcont'd) Long-term debt obiigations outstanding at year-end are summarized as follows: Bond Payment Issue Maturity Authorized Rates Dates Date Date And issued Retired Outstanding General Obligation Bonds State-Aid Street Bonds 4.7-6.7 401 10-01 09-01-91 04-01-06 $3,000,000 $1,245,000 $1,755,000 Refunding State-Aid Street Bonds 3.55-4.0 401 10-01 12-01-98 04-01-06 1,585,000 1,585,000 Police and Fire Building Bonds 4.1-4.9 2-01 8-01 12-01-97 02-01-13 7,900,000 325,000 7,575,000 Total $12,485,000 $1,570,000 $10,915,000 General Obiigation Tax Increment Bonds 1991 Tax Increment Bonds 4.7-6.0 2-01 8-01 03-01-91 02-01-04 $6,050,000 $2,825,000 $3,225,000 t 1992 Refunding Tax Increment 4.5-5.6 2-01 8-01 02-01-92 02-01-03 4,270,000 1,410,000 2,860,000 1995 Taxable Tax increment Bonds 6.0-6.75 2-01 8-01 11-01-95 02-01-11 4,560,000 225,000 4,335,000 Total $14,880,000 $4,460,000 $10,420,000 General Obligation Special Assessment Bonds 1994 Street Improvement Bonds 4.1-5.5 2-01 8-01 08-01-94 02-01-05 $835,000 $305,000 $530,000 1995 Street Improvement Bonds 4.0-4.9 2-01 8-01 11-01-95 02-01-06 780,000 210,000 570,000 1996 Street lmprovement Bonds 4.2-5.1 2-01 8-01 11-01-96 02-01-07 1,440,000 250,000 1,190,000 1997 Street Improvement Bonds 4.0-4.7 2-01 8-01 12-01-97 02-01-08 1,075,000 115,000 960,000 1998 Street Improvement Bonds 3.4-4.2 2-01 8-01 12-01-98 02-01-09 1,085,000 1,085,000 1999 Street Improvement Bonds 4.1-5.0 2-01 8-01 12-01-99• 02-01-10 1,585,000 1,585,000 Total $6,800,000 $880,000 $5,920,000 Generai Obligation Revenue Bonds 1994 Storm Sewer Revenue Bonds 4.2-5.4 2-01 8-Q'I 08-01-94 02-01-05 $9,830,000 $600,000 $1,230,000 Total $1,830,000 $600,000 $1,230,000 1 39 Note 6: Lona Term Debt (cont'dl in addition to the bonded debt listed above, the City of Brookiyn Center has two amounts recorded as "Other long term liabilities." These are loans extended to the City by Northern States Power for the purpose of promoting energy conservation improvements to City owned facilities. The first loan is recorded in the General Long-term Debt Group of Accounts for $54,131 and was used for installation of low energy lamps in tra�c signals. It will be repaid by the General Fund in 41 monthly installments of $1,388 which commenced on November 4, 1998. The second loan is recorded in the Water Fund for $225,208 and was used for installation of controls on well pumps. It is payable in 51 monthly installments of $4,692 which commenced on October 2, 1998. General Long-Term Water Debt Fund Total Other long term liabilities payable January 1 $54,131 $225,208 $279,339 Liabilities issued Liabilities retired 16,656 56,302 72,958 Other long term t liabilities payabte t December 31 $37,475 $168,906 $206,381 Conduit debt obliaations From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds to provide assistance to private sector entities for the acquisition and construction of housing, industrial, and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 1999, there were five series of Housing Revenue or Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of approximately $22,230,000. 40 Note 7: Seament Information Segment information as of and for the year ended December 31, 1999 was as follows: E. Brown Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary �torm I Liquor Course Center Refuse Utility Sewer Draina�e Fund Fund Fund Fund Fund Fund Fund Total i Operating Revenues $3,560,613 $355,534 $3,490,692 $210,764 $1,354,179 $2,384,106 $999,867 $12,355,755 I Depreciation Expense 39,821 13,847 376,209 356,572 203,019 75,843 1,065,311 Operating Income (Loss) 233,353 62,064 (425,411) (2,618) 184,418 404,939 767,462 1,224,207 -p Operating Grants 1,092,809 1,092,809 Operating Transfers In (Out) (75,000) 4,357 (70,643) Net Income (Loss) 174,024 64,662 (444,287) (347) 282,508 451,495 2,090,468 2,618,523 Current Capital Contributions 1,234,880 1,234,880 Property, Plant Equipment: Additions 1,973 4,358 1,405,140 580,005 605,891 2,382,921 4,980,288 Deletions 79,008 6,077 85,085 Net Working Capital 593,977 10,162 (608,402) 99,595 3,087,526 1,877,998 15,129 5,075,985 Total Assets 1,043,265 1,736,298 11,528,386 100,595 15,879,489 11,783,887 9,584,684 51,656,604 Bonds and Other Long-Term Liabilities Payable from Operating Revenues 1,000,000 168,906 1,050,000 2,218,906 Total Equity $861,865 $670,822 $10,499,522 $99,595 $15,550,728 $11,691,781 $8,058,745 $47,433,058 Note 8: Reserved/Desianated Fund Eauitv Fund balances and retained earnings in the various funds have been reserved or designated for the following purposes: Reserved Fund Epuitv Retained Eamings: Enterprise Funds: Water Utility Fund Special Assessments $132,628 Sanitary Sewer Fund Special Assessments 4,351 Storm Drainage Fund Debt Service 239,110 Special Assessments 33,275 Total Reserved Retained Earnings 409,364 Fund Balances: General Fund: Advances to Other Funds 105,074 Special Revenue Funds: Economic Development Authority Fund Bond Proceeds 977,619 Debt Service Funds: General Obligation Bonds Debt Service 2,276,608 Tax Increment Bonds Debt Service 1,914,953 Special Assessment Bonds Debt Service 1,475,08a Total Debt Service Funds S,666,641 Capital Projects Funds: Capital Improvements Fund Advances to Other Funds 1,076,343 Municipal State Aid for Construction Fund Advances to Other Funds 593,069 Total Capital Projects Funds 1,669,412 Total Reserved Fund Balances 8,418,746 Total Reserved Fund Equity $8,828,110 Desianated Fund Eauitv General Fund: Working Capital $5,937,168 Total General Fund $5,937,168 42 Note 9: Interfund Receivables and Pavabies Due from other funds and due to other funds are short-term receivables/payabies which have interest rates of 0% to 6.5%. Advances to other funds and advances from other funds are considered long-term receivables/payables. Advances have interest rates of 0% to 7% with maturities extending through the year 2017. Advances between funds are offset by a fund balance reserve account and are not expendable or available financial resources. Due from Due to Other Funds Other Funds General Fund 220,122 Special Revenue Funds: Economic Development Authority Fund 56,213 Tax Increment #3 Fund 30,006 Tax Increment #4 Fund 17,236 Capital Projeets Funds: Capital Res.erve Emergency Fund 30,303 Capital Improvements Fund 131,948 M.S.A. Construction Fund 49,737 Special Assessments Constr. Fund 43,907 Enterprise Funds: Earle Brown Heritage Center Fund 545,000 t Total 562,236 562,236 Advances to Advances from Other Funds Other Funds General Fund 105,074 Special Revenue Funds: E.B. Farm Tax Increment Fin. Fund 698,143 Capital Projects Funds Capital Improvements Fund 1,076,343 M.S.A. Construction Fund 593,069 Enterprise Funds: Municipal Liquor Fund 26,343 Golf Course Fund 1,050,000 Total 1,774,486 1,774,486 43 1 Note 10: Individual Fund Disclosures Deficit fund balances Pxist at December 31 1999 in the following funds: Special Revenue Funds Earle Brown Tax Increment Financing District: Unreserved deficit fund balance $656,428 Tax Increment District No. 4 Unreserved deficit fund balance $17,462 These deficits are being funded through internal borrowing and will be repaid from future surplus tax increments. Enterprise Funds: E. Brown Heritage Center Fund $260,633 This deficit is being funded through internal borrowing and will be repaid from future income of the enterprise. Excess of Exnenditures over Annronriations: For the year ended December 31, 1999, expenditures exceeded budget at the fund level (i.e., the legal level of budgetary control) as follows: Snecial Revenue Funds: Excess Housing and Redevelo ment Authorit 3 215 p Y Tax Increment District No. 3 57,149 Tax Increment District No. 4 17,462 Police Drug Forfeiture Fund 20,558 City Initiatives Grant Fund $109,841 The over expenditures in the Housing and Redevelopment Authority were due to higher property tax revenues than anticipated resulting in a larger transfer out, but for which no budget adjustment was made. The over expenditures in the tax increment districts resulted from higher property tax rebates than budgeted and the creation of a new district which was not budgeted. The over expenditures were funded by tax increment revenues. The over expenditures in the Police Drug ForFeiture and City Initiatives Grant Funds were the result of no budgets for the funds. The over expenditures were funded by fund revenues. Note 11: Continaencies There are a few lawsuits pending in which the City is involved. City t Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the City's financial position. 44 Note 12: Risk Manaaemen� The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions and natural disasters for which the City carries commercial insurance policies. The City retains risk for the deduetibfe portions of the insurance policies. The amount of these deductibles is considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three years. However, the City did increase the deductible portion of the insurance policies and the amount of this increase is considered immaterial to the financial statements. Note 13: Post-Emalovment Health Care Benefits The City has provided post-retirement health care benefits as per the requirements of a City Council resolution, for certain retirees and their dependents since 1986. Full time employees have the option of retaining membership in the City's health insurance plan for which the City will pay the single person premium until such time as the retiree is eligible for Medicare coverage or at age 65, whichever is sooner. If the retiree desires to continue family coverage, the additional cost for family coverage shall be paid by the retiree to the City. There are two methods whereby an employee can qualify under this program. First, the employee, on the date of his/her retirement, must meet eligibility requirements for a full retirement annuity under PERA (Note 14A) without reduction of benefits because of age, disability, or any other reason for reduction. In addition, the employee must have been employed full time by the City for the last ten consecutive years prior to the effective date of retirement. Additiona(ly, employees who are retiring after twenty-five years of consecutive senrice with the City and are eligible to receive a pension from PERA shall have the option of retaining membership in the City's health insurance plan for which the employee will pay the premium until such time as the retiree is eligible to receive a full-retirement annuity under PERA or PERA police. At that time, the City will pay the single-person premium until such time as the retiree is eligible for Medicare coverage or at age 65, whichever is sooner. Employees participate in this program on a voluntary basis. As of December 31, 1999, seven employees currently participate in this program. The cost of City paid health care premiums for the years ended December 31, 1999 and 1998 was $16,354 and $14,861, respectively. In addition, the expenditures in 1999 and 1998 were increased by $140,558 and $11,104, respectively, to account for the change in the accrued health insurance liability. The $1,369,891 recorded as a liability reflects the City's best estimate of the vested obligation to be funded for this program as of December 31, 1999. 45 Note 14: Defined Benefit Pension Plans Statewide A. Plan Descrintion All full-time and certain part-time employees of the City of Brooklyn Center are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF),which are cost sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by statute t are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic members. The retiring member receives the higher of step rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For all PEPFF members and PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. 46 Note 14: Defined Benefit Pension Plans Statewide (cont'dl The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial re ort that includes financial p statements and required supplementary information for PERF and PEPFF. That t report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul, Minnesota, 55102 or by calling (651) 296-7460 or 1-800-652-9026. B. Fundina Policv Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75%, respectively, of their annual covered salary. PEPFF members are required to contribute 7.60% of their annual covered salary. The Ci#y of Brooklyn Center is required to contribute the following percentages of annual covered payroll: 11.43% for Basic Plan PERF members, 5.18°/a for Coordinated Plan PERF members, and 11.40% for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years ended December 31, 1999, 1998, and 1997 were $285,779, $277,561, and $218,414, respectively. The City's contributions to the Public Employees Police Fire Fund for the years ended December 31, 1999, 1998, and 1997 were $254,859, $269,796, and $268,181, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 15: Pension Plan Brooklvn Center Fire De�artment Relief Association Plan Descrintion The City contributes to the Brooklyn Center Fire Department Relief Association (Association) which is the administrator of a single employer retirement system to provide a retirement plan (the Plan) to volunteer fire fighters of the City who are members of the Association. The Association issues a financial report, including financial statements and required Plan supplementary information, that is available at the City offices. Fundina Policv and Annual Pension Cos# 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. 47 Note 15: Pension Plan Brooklvn Center Fire Department Relief Association (cont'dl Contributions: Total contributions to the Plan in 1999 were $116,570, of which $27,086 was levied by the City of Brooklyn Center and $89,484 was from the State of Minnesota. The actuarially determined contribution based on an actuarial valuation performed at January 1, 1997 was $96,617 which represents funding for normal cost of $71,537 and administration of $25,080. Actuarial valuation date: January 1, 2000 updated from the base year t actuarial study as of January 1, 1999. Actuarial cost method: Entry age normal cost method. Amortization method: The Plan was fully funded as of December 31, 1999. Remaining amortization period: None. Actuarial assumptions Investment rate of return 7.5% compounded annually Projected salary increases (�ot applicable t Post retirement benefits None Three-vear Trend Information Negative Annual Net Year Pension APC Pension Endina Cost (APC) Contributed Obliaation 12/31/97 $108,451 $123,070 $362,882 12/31 /98 $95,176 $107,215 $438, 538. 12/31/99 $96,617 $116,570 $789,400 1 Schedule of Fundinq Proaress Actuarial Actuarial Accrued Excess of Value of Liability (AAL) Assets Funded Fiscal Assets Entry Age over AAL Ratio Year (al (b) la-b) (a/b� 1997 $2,966,487 $2,603,605 $362,882 113.9% 1998 $3,056,068 $2,617,530 $438,538 116.8% 1999 $3,319,342 $2,529,942 $789,400 131.2% (1) 1998 is based on an actuarial valuation as of 1/1 /99. 1997 and 1999 are based on an actuarial update of the 1/1/97 and 1/1/99 actuarial valuations, respectively. 48 Note 15: Pension Plan Brooklvn Center Fire De�artment Relief Association (cont'd) (2) The Brooklyn Center Fire Department is a volunteer organization; thus no covered payroll exists. Related Partv Investments As of December 3�, 1999, the Association held no securities issued by the City or other related parties. Note 16: Fund Chanaes The following funds were o ened durin 1999: p 9 Special Revenue: Tax Increment Financing District #4 Debt Service: GO Street Improvement Bonds of 1999 Fund No funds were closed during 1999. Note 17: Residual Enuitv TransfPrs The General Fund transferred $475,000 to the Capital Improvements Capital Projects Fund and $225,000 to the Special Assessment Construction Capital Projects Fund. The transfers represent funds from the prior year's surplus of revenues over expenditures. The funds will be used for future park and street improvements. The amounts are not expected to be repaid and are reflected as residual equity transfers in the City's financial statements. 49 City of Brooklyn Center, Minnesota GENERALFUND The City of Brooklyn Center Home Rule Charter provides in Section 7.11 that "there shall be maintained in the City Treasury a classification of Funds which shall provide for a General Fund for the payment of such expenses of the City as the Council may deem proper, and such other funds as may be required by statute, ordinance or resolution." The General Fund was established to account for all revenues and expenditures which are not required to be accounted for in other funds. It has more diverse revenue sources than other funds. These revenue sources include property taxes, licenses, permits, fines and forfeits, intergovernmental, service charges, and investment earnings. The Fund's resources finance a wide range of functions, including the current operations of general government, public safety, public works, health and welfare, recreation, and non-departmental expenditures. This fund utilizes the modified accrual basis of accountin Revenues are reco nized in 9 9 the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. 1 50 A_1 City of Brooklyn Center General Fund COMPARATIVE BALANCE SHEET December 31, 1999 1999 1998 ASSETS t Cash and cash equivalents $1,218,275 $1,579,370 Investments 7,117,968 6,868,997 Accounts receivable 66,188 84,320 Delinquent taxes receivable 166,999 147,435 Due from other funds 220,122 120,238 Due from other governments 140,859 37,937 Advance to other funds 105,074 105,074 TOTAL ASSETS $9,035,485 $8,943,371 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $300,707 $397,316 Accrued salaries payable 374,450 321,940 Accrued vacation and sick pay 634,389 602,396 Deferred revenue delinquent taxes 166,999 147,435 Deferred revenue tax abatements 250,233 136,284 Totai Liabilities 1,726,778 1,605,371 Fund Balance: Reserved for advances to other funds 105,074 105,074 Unreserved fund balance Designated: Working capital 5,937,168 5,712,691 Appropriated fo next budget 13,535 Undesignated 1,266,465 1,506,700 Total Fund Balance 7,308,707 7,338,000 TOT UND BALANCE 9 AL LIABILITIES AND F ,035,485 $8,943,371 51 A-2 City of Brooklyn Center General Fund COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES 1N FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes $8,214,083 $8,333,440 $119,357 $7,980,066 Property tax abatements reserve (113,949) (113,949) (30,322) Licenses and permits 418,628 763,960 345,332 549,067 Intergovernmental 3,894,372 3,911,480 17,108 3,875,392 Charges for services 862,206 739,054 (123,152) 771,614 Court fines 204,000 205,460 1,460 193,688 Investment earnings 280,000 346,382 66,382 377,826 Change in fair value of investments (158,708) (158,708) 35,118 Miscelianeous 12,000 6,679 (5,321) 12,375 Total Revenues 13,885,289 14,033,798 148,509 13,764,824 Expenditures General government 2,357,773 2,257,957 (99,816) 2,133,829 Public safety 5,433,832 5,336,622 (97,210) 5,137,108 Publicworks 2,016,754 1,904,205 (112,549) 1,955,108 Community services 84,910 83,295 (1,615) 73,066 Parks and recreation 2,232,090 2,132,511 (99,579) 2,075,180 Economic development 385,250 383,927 (1,323) 313,792 Non departmental 534,653 343,925 (190,728) 312,625 Administrative Services Reimbursement (737,487) (670,390) 67,097 (731,737) Total Expenditures 12,307,775 11,772,052 (535,723) 11,268,971 Excess or Deficiency of Revenues Over Expenditures 1,577,514 2,261,746 684,232 2,495,853 Other Financina Sources or Uses (-1 Operating transfers out (1,591,049) (1,591,039) 10 (1,427,001) Total Other Financing Sources or Uses (1,591,049) (1,591,039) 10 (1,427,001) Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (13,535) 670,707 684,242 1,068,852 Fund Balance January 1 7,338,000 7,338,000 6,619,148 Equity Transfers Out (700,000) (700,000) (350,000) Fund Balance December 31 $7,324,465 $7,308,707 ($15,758) $7,338,000 52 S-1 (Continued next page) City of Brooklyn Center General Fund SCHEDULE OF REVENUES AND OTHER FINANC(NG SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Ad Valorem Taxes Gross property taxes $7,404,933 $7,525,118 $120,185 $7,328,286 Penalties and interest (1,994) (1,994) {10,524) Lodging tax 808,150 808,266 116 660,613 Speciai assessments 1,000 2,050 1,050 1,691 Total Taxes 8,214,083 8,333,440 119,357 7,980,066 Reserve for Propertv Tax Abatements Tax abatements under litigation (113,949) (113,949) (30,322) Total Property Tax Abatements (113,949) (113,949) (30,322) Licenses and Permits Liquor and beer 142,358 108,135 (34,223) 103,063 Building permits 150,000 482,144 332,144 280,851 Mechanical permits 30,000 58,365 28,365 46,563 Sewer and water permits 1,000 1,741 741 995 Plumbing permits 18,000 45,743 27,743 29,508 Garbage licenses 3,225 2,845 (380) 3,060 Taxicab licenses 2,700 175 (2,525) 625 Mechanical iicenses 4,500 4,154 (346) 5,102 Pawn shop licenses 8,000 12,750 �4,750 12,100 Service station licenses 2,995 3,933 938 2,770 Vehicle dealer licenses 1,575 1,575 1,400 Bowling licenses 700 720 20 1,970 Cigarette licenses 3,900 3,825 (75) 3,417 Sign permits 2,500 2,925 425 3,152 Rental dwelling permits 28,215 19,182 (9,033) 38,209 Amusernent licenses 8,960 7,432 (1,528) 7,495 Dog licenses 8,000 5,836 (2,164) 5,909 Misceilaneous business license 2,000 2,480 480 2,878 Total Licenses and Permits 418,628 763,960 345,332 549,067 Interaovernmental Federal grants: Miscellaneous grants 5,000 5,351 351 5,208 Total Federai Grants $5,000 $5,351 $351 $5,208 53 -1 S (Continued from prior page) t City of Brooklyn Center General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actuai I nteraovern mental lcontinuedl State grants: Local govemment aid $2,069,744 $2,069,744 $2,012,749 Local performance aid 34,529 34,529 37,778 Homestead credit aid 1,307,465 1,307,465 1,308,965 Police pension aid 241,400 248,748 $7,348 260,931 PERA aid 34,365 34,365 34,365 Fireperson pension aid 84,619 89,484 4,865 87,036 Police training 13,700 14,156 456 13,293 E-911 phone service 12,750 17,019 4,269 15,606 Street maintenance aid 90,000 90,000 90,000 Miscellaneous grants 800 619 (181) 9,461 Total State Grants 3,889,372 3,906,129 16,757 3,870,184 Total intergovemmental 3,894,372 3,911,480 17,108 3,875,392 Charaes for Services t General govemment charges 23,000 28,058 5,058 31,804 Public safety charges 23,050 41,864 18,814 31,980 Recreation fees 816,156 669,132 (147,024) 707,830 Total Charges for Services 862,206 739,054 (123,152) 771,614 Court Fines Fines 204,000 205,460 1,460 193,688 Total Court Fines 204,000 205,460 1,460 193,688 Miscellaneous Interest on investments 280,000 346,382 66,382 377,826 Change in fair value of investments (158,708) (958,708) 35,118 Other 12,000 6,679 (5,321) 12,375 Total Miscellaneous 292,000 194,353 (97,647) 425,319 Total Revenues $13,885,289 $14,033,798 $148,509 $13,764,824 S4 S-2 City of Brooklyn Center (Continued next page) General Fund SCHEDULE UF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actuai General Government Mayor and Council: Personal services $40,323 $40,435 $112 $39,337 Supplies 800 1,566 766 725 Services and other charges 79,480 72,731 (6,749) 69,395 Total Mayor and Council 120,603 114,732 (5,871) 109,457 Administrative Office: Personal services 344,659 337,409 (7,250) 311,846 Supplies 1,700 4,054 2,354 4,651 Services and other charges 80,150 77,576 (2,574) 89,432 Capital outlay 2,000 1,934 (66) 5,435 Total Administrative Office 428,509 420,973 (7,536) 411,364 Elections and Voter Registration: Personal seroices 50,066 44,271 (5,795) 47,8�3 Supplies 900 (900) 941 Services and other charges 6,200 623 (5,577) 4,876 Total Elections and Voter Registration 57,166 44,894 (12,272) 53,620 Assessor's Office: Personal services 219,556 209,435 (10,121) 205,157 Supplies 2,500 2,416 (84) 4,605 Services and other charges 34,664 30,329 (4,335) 29,382 Capital outlay 5,900 6,167 267 2,866 Total Assessor's Office 262,620 248,347 (14,273) 242,010 Finance: Personal services 393,879 368,311 (25,568) 376,102 Supplies 6,100 6,020 (80) 4,332 Services and other charges 8,295 6,833 (1,462) 6,309 Capital outlay 6,500 5,111 (1,389) 12,043 Total Finance 414,774 386,275 (28,499) 398,786 Legal: Services and other charges 268,900 268,388 (512) 188,756 Total Legal 268,900 268,388 (512) 188,756 Government Buildings: Personal services 214,871 192,470 (22,401) 183,791 Supplies 65,650 74,567 8,917 59,074 Services and other charges 286,224 271,942 (14,282) 261,692 Capital outlay 10,450 23,929 13,479 7,982 Total Government Buildings $577,195 $562,908 ($14,287) $512,539 55 S City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actuai General Government (continued) Data Processing: Personal services $67,383 $58,387 ($8,996) $59,436 Supplies 10,000 7,692 (2,308) 9,325 Services and other charges 130,323 128,858 (1,465) 121,788 Capital outlay 20,300 16,503 (3,797) 26,748 Totai Data Processing 228,006 211,440 (16,566) 217,297 Total General Government 2,357,773 2,257,957 (99,816) 2,133,829 Public Safetv Police Protection: Personal services 3,644,892 3,584,414 (60,478) 3,437,383 Supplies 67,823 65,959 (1,864) 72,336 Services and other charges 669,995 647,662 (22,333) 588,678 Capital outiay 27,450 27,686 236 32,742 Total Police Protection 4,410,160 4,325,721 (84,439) 4,131,139 Fire Protection: Personal services 371,541 360,714 (10,827) 344,436 Supplies 35,300 33,649 (1,651) 34,773 Services and other charges 147,761 147,816 55 192,372 Capital outlay 43,000 54,642 11,642 43,639 Total Fire Protection 597,602 596,821 (781) 615,220 Protective Inspection: Personal services 327,528 333,041 5,513 318,011 Supplies 4,200 3,249 (951) 2,495 Services and other charges 39,658 27,779 (11,879) 26,100 Capital outlay 7,500 7,500 Total Protective Inspection 378,886 371,569 (7,317) 346,606 Emergency Preparedness: Personal services 38,165 32,587 (5,578) 35,292 Supplies 1,500 937 (563) 1,385 Services and other charges 7,519 8,987 1,468 7,466 Total Emergency Preparedness 47,184 42,511 (4,673) 44,143 Total Public Safety $5,433,832 $5,336,622 ($97,210) $5,137,108 1 S6 S-2 City of Brooklyn Center (Continued neut page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actuai Public Works Engineering Department: Personal services $583,767 $578,709 ($5,058) $541,017 Supplies 5,150 4,932 (218) 4,801 Services and other charges 27,180 21,674 (5,506) 31,688 Capital outlay 17,700 16,955 (745) 10,207 Total Engineering Department 633,797 622,270 (11,527) 587,713 Street Department: Personal services 584,921 558,924 (25,997) 599,138 Supplies 168,450 132,860 (35,590) 128,181 Services and other charges 560,006 500,322 (59,684) 637,300 Capital outlay 69,580 89,829 20,249 2,776 Total Street Department 1,382,957 1,281,935 (101,022) 1,367,395 Total Public Works 2,016,754 1,904,205 (112,549) 1,955,108 Communitv Services Social Services Service and other charges 84,910 83,295 (1,615) 73,066 Total Community Services 84,910 83,295 (1,615) 73,066 Parks and Recreation Administration: Personal services 367,216 371,701 4,485 358,500 Supplies 16,600 12,856 (3,744) 16,528 Services and other charges 52,650 43,947 (8,703) 62,312 Capital outlay 21,400 21,924 524 Total Administration 457,866 450,428 (7,438) 437,340 Adult Programs: Persona� services 81,270 74,065 (7,205) 91,711 Supplies 26,415 28,182 1,767 25,557 Services and other charges 126,538 107,143 (19,395) 108,862 Total Adult Programs 234,223 209,390 (24,833) 226,130 Teen Programs: Personal services 12,327 2,977 (9,350) 5,950 Supplies 1,450 58 (1,392) 1,206 Services and other charges 4,300 1,308 (2,992) 2,634 Total Teen Programs $18,077 $4,343 ($13,734) $9,790 57 S-2 City of Brooklyn Center (Continued next page) t General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Parks and Recreation (continuedl Children's Programs: Personal services $93,837 $82,818 ($11,019) $87,022 Supplies 8,950 13,170 4,220 10,194 Services and other charges 5,305 5,869 564 4,932 Total Children's Programs 108,092 101,857 (6,235) 102,148 General Programs: Personal services 22,106 23,053 947 22,938 Supplies 200 4 (196) 49 Services and other charges 32,782 31,198 (1,584) 27,649 Total General Programs 55,088 54,255 (833) 50,636 Community Center: Personal services 391,579 374,111 (17,468) 365,912 Supplies 48,000 50,603 2,603 19,114 Services and other charges 54,687 53,331 (1,356) 80,572 Capital outlay 4,887 4,887 Total Community Center 494,266 482,932 (11,334) 465,598 Park Maintenance: Personal services 531,772 504,118 (27,654) 482,562 Supplies 61,250 47,986 (13,264) 53,859 Services and other charges 240,256 242,612 2,356 209,025 Capital outlay 31,200 34,590 3,390 38,092 Total Park Maintenance 864,478 829,306 (35,172) 783,538 Total Parks and Recreation 2,232,090 2,132,511 (99,579) 2,075,180 Economic Develoament Convention Bureau: Services and other charges 385,250 383,927 (1,323) 313,792 Total Economic Development 385,250 383,927 (1,323) 313,792 Nondeoartmental Expenditures not Charged to Departments: Personal services 47,654 40,986 (6,668) 2,883 Supplies 27,000 26,276 (724) 27,852 Services and other charges 439,999 258,840 (181,159) 277,336 Capital outlay 20,000 17,823 (2,177) 4,554 Total Nondepartmental $534,653 $343,925 ($190,728) $312,625 S8 S-2 City of Brooklyn Center (Continued from prior page) General Fund SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Administrative Service Reimbursement Charged to other funds ($737,487) ($670,390) $67,097 ($731,737) Total Administrative Service Reimbursement (737,487) (670,39�) 67,097 (731,737) t Other Financma Uses Operating transfers out: Special Assessment Construction Fund 424,917 424,917 394,197 Earle Brown Heritage Center Fund 4,358 4,357 (1) Employee Retirement Fund 120,000 120,000 Special Assessment Bonds Debt Service Fund 262,279 262,274 (5) 257,270 Police Fire Building Debt Service Fund 779,495 779,491 (4) 775,534 Total Other Financing Uses 1,591,049 1,591,039 (10) 1,427,001 Total Expenditures and Other Financing Uses $13,898,824 $13,363,091 ($535,733) $12,695,972 59 City of Brooklyn Center, Minnesota 1 SPECIAL REVENUE FUNDS The Special Revenue Funds are established to account for revenues derived from tax es and/or other specific revenue sources. These resources are usually restricted by statute, City Charter or ordinance to finance specific City functions or activities. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Housina and Redevelooment Authoritv Fund (H.R.A.I; This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A. Fund and all tax proceeds are transferred to that fund. Economic Develonment Authoritv Fund (E.D.A.1: This fund was established to account for the Economic DevelopmentAuthority (E.D.A.) of Brooklyn Center. The E.D.A. carries out activities which previously were done by the H.R.A., plus it has authority to operate an enterprise. The Earle Brown Heritage Center operates under this authority and a statement of its operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and housing projects, funded by an ad valorem property tax levy, and transfers from the C.D.B.G.and H.R.A.funds. Earle Brown Farm Tax Increment Financina District Fund: This fund has the authority to collect tax increments which are used for the historic restoration of the Earle Brown Farm and for debt service payments of bonds which also were issued for that purpose. Tax Increment Districts No. 3 and No. 4 Funcis: These funds have the authority to collect tax increments which are used for various redevelopment projects within the City and for debt service payments of bonds which also were issued for that purpose. Police Drua Forfeiture Fund: This fund was established to account for property and/or cash seized by police personnel. Communitv Develonment Bl�ck Grant Fund �C.D.B.G.1; The fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. Transfers are made from this fund to the Economic Development Authority Fund where accounting for project costs takes place. Citv Initiatives Grant Fund: Revenues and expenditures from grants received from other entities are accounted for in this fund. Grant programs for 1999 include several public safety grants, an after school enrichment recreation grant and a local planning assistance grant. t 60 City of Brooklyn Center Special Revenue Funds COMBINING BALANCE SHEET December 31, 1999 1 Economic Earie Brown Tax Development Tax incr. Increment Authority Financing District Fund District No.3 ASSETS Cash and cash equivalents $309,264 $9,597 $165,087 Investments 1,803,505 55,964 962,724 Accounts receivable 12,188 Delinquent taxes receivable 7,481 Due from other funds 56,213 30,006 Due from other governments TOTAL ASSETS $2,188,651 $65,561 $1,157,817 LIABILITIES AND FUND BALANCES (DEFICITSI I Liabilities: Accounts payable $17,518 $23,846 $17,783 Due to other funds Accrued salaries payable 6,584 Accrued vacation and sick pay 18,390 Advances from other funds 698,143 Deferred revenue 7,481 Total Liabilities 49,973 721,989 17,783 Fund Balances {Deficits): Reserved: Bond proceeds 977,619 Unreserved 1,161,059 (656,428) 1,140,034 Total Fund Balances (Deficits) 2,138,678 (656,428) 1,140,034 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $2,188,651 $65,561 $1,157,817 61 B-1 1 Tax increment Police Drug City District Forfeiture initiatives Totals No. 4 Fund Grant Fund 1999 1998 $3,798 $10,024 $497,770 $657,742 22,147 58,459 2,902,799 2,871,342 12,188 32,467 7,481 6,359 86,219 214,891 1, 991 1, 991 174, 866 $0 $25,945 $70,474 $3,508,448 $3,957,667 $226 $63 $59,436 $102,542 17,236 17,236 171,573 6, 584 4, 849 18,390 21,904 698,143 698,143 7,481 6,359 17,462 63 807,270 1,005,370 977,619 2,481,353 (17,462) $25,945 70,411 1,723,559 470,944 (17,462) 25,945 70,411 2,701,178 2,952,297 $0 $25,945 $70,474 $3,508,448 $3,957,667 62 City of Brooklyn Center Special Revenue Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1999 Housing and Economic Earle Brown Tax Redevelopment Development Tax Increment increment Authority Authority Financing District Fund Fund District No.3 Revenues Property taxes $137,711 $193,489 $1,337,190 $1,565,400 Intergovernmental 18,304 1,454,756 Investment earnings 140,557 17,862 37,832 Change in fair value of investments (73,789) (8,145) (14,174) Sale of property 2,411,987 Miscellaneous 87,148 Total Revenues 156,015 4,214,148 1,346,907 1,589,058 Expenditures Personal services 172,309 Supplies 583 Services and other charges 1,821,775 1,898 266,950 Capital outlay 3,512,952 Interest Total Expenditures 5,507,619 1,898 266,950 Excess or Deficiency of Revenues Over Expenditures 156,015 (1,293,471) 1,345,009 1,322,108 Other Financinp Sources or Uses(-) Operating transfers in 233,751 Operating transfers out (156,015) (1,330,000) (550,000) Total Other Financing Sources or Uses(-) (156,015) 233,751 (1,330,000) (550,000) Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (1,059,720) 15,009 772,108 Fund Balances (Deficits) January 1 3,198,398 (671,437) 367,926 t Fund Balances (Deficits) December 31 $0 $2,138,678 ($656,428) $1,140,034 63 1 B-2 Tax Police City Increment Drug Community Initiatives District Forfeiture Development Grant Totals No. 4 Fund Block Grant Fund 1999 1998 $3,233,790 $2,237,671 $77,736 $112,852 1,663,648 359,393 $1,714 2,908 200,873 257,154 (634) (714) (97,456) 23,773 2,411,987 221,040 20,008 33,211 140,367 54,305 21,088 77,736 148,257 7,553,209 3,153,336 13,935 186,244 224,397 8,788 294 9,665 2,184 $17,125 2,574 95,612 2,205,934 473,806 9,196 3, 522,148 321, 252 337 337 1, 393 17,462 20,558 109,841 5,924,328 1,023,032 (17,462) 530 77,736 38,416 1,628,881 2,130,304 233,751 294,197 (77,736) (2,113,751) (2,644,197) (77,736) (1,880,000) (2,350,000) (17,462) 530 38,416 (251,119) (219,696) 25,415 31,995 2,952,297 3,171,993 ($17,462) $25,945 $0 $70,411 $2,701,178 $2,952,297 1 64 B=3 City of Brooklyn Center Housing and Redevelopment Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes $134,496 $137,711 $3,215 $104,294 Intergovernmental 18,304 18,304 18,330 Totai Revenues 152,800 156,015 3,215 122,624 Other Financina Uses Operating transfers out (152,800) (156,015) (3,215) (122,624) Excess or Deficiency of Revenues Over Other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 1 1 65 B_4 City of Brooklyn Center Economic Development Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes $189,051 $193,489 $4,438 $171,088 Intergovernmental 1,460,000 1,454,756 (5,244) Investment earnings 150,000 140,557 (9,443) 205,426 Change in fairvalue of invesfinents (73,789) (73,789) 19,094 Sale of property 2,420,000 2,411,987 (8,013) 221,040 Miscellaneous 24,000 87,148 63,148 37,603 Total Revenues 4,243,051 4,214,148 (28,903) 654,251 Expenditures Personal services 177,892 172,309 (5,583) 174,785 Supplies 1,900 583 (1,317) 131 Services and other charges 2,036,318 1,821,775 (214,543) 262,360 Capital outlays 3,900,550 3,512,952 (387,598) 266,619 Total Expenditures 6,116,660 5,507,619 (609,041) 703,895 Excess or Deficiency of Revenues Over Expenditures (1,873,609) (1,293,471) 580,138 (49,644) Other Financina Sources Operating transfers in 1,873,609 233,751 (1,639,858) 294,197 Operating transfers out (500,000) Total Other Financing Sources 1,873,609 233,751 (1,639,858) (205,803) Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures (1,059,720) (1,059,720) (255,447) Fund Balance January 1 3,198,398 3,198,398 3,453,845 Fund Balance December 31 $3,198,398 $2,138,678 ($1,059,720) $3,198,398 66 B=5 City of Brooklyn Center Earle Brown Farm Tax Increment District Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes $1,226,212 $1,337,190 $110,978 $1,145,815 investment earnings 17,862 17,862 23,611 Change in fairvalue of investments (8,145) (8,145) 2,195 Total Revenues 1,226,212 1,346,907 120,695 1,171,621 t Exnenditures Senrices and other charges 2,000 1,898 (102) 3,184 Total Expenditures 2,000 1,898 (102) 3,184 1 Excess or Deficiency of Revenues Over Expenditures 1,224,212 1,345,009 120,797 1,168,437 Other Financina Uses (-1 Operating transfers out (1,330,000) (1,330,000) (1,280,000) Total Other Financing Uses (1,330,000) (1,330,000) (1,280,000) 1 Excess or Deficiency of Revenues Over Expenditures and Other Financing Uses (105,788) 15,009 120,797 (111,563) Fund Balance (Deficit) January 1 (671,437) (671,437) (559,874) Fund Balance (Deficit) December 31 ($777,225) ($656,428) $120,797 ($671,437) 67 1 B City of Brooklyn Center Tax Increment District No. 3 Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actuai Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes $1,308,002 $1,565,400 $257,398 $816,474 Investment earnings 37,832 37,832 23,818 Change in fair value of investments (14,174) (14,174) 2,214 Total Revenues 1,308,002 1,589,058 281,056 842,506 Expenditures Services and other charges 209,801 266,950 57,149 139,270 Total Expenditures 209,801 266,950 57,149 139,270 t Excess or Deficiency of Revenues Over Expenditures 1,098,201 1,322,108 223,907 703,236 Other Financina Uses Operating transfers out (550,000) (550,000) (570,000) Total Other Financing Uses (550,000) (550,000) (570,000) Excess or Deficiency of Revenues Over Expenditures and Other Financing Uses 548,201 772,108 223,907 133,236 Fund Salance January 1 367,926 367,926 234,690 Fund Balance December 31 $916,127 $1,140,034 $223,907 $367,926 68 1 B_7 City of Brookiyn Center Tax Increment District No. 4 Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Property taxes Investment earnings Change in fair value of investments Total Revenues Expenditures Services and other charges $17,125 $17,125 Interest 337 337 Total Expenditures 17,462 17,462 Excess or Deficiency of Revenues Over Expenditures (17,462) (17,462) Fund 8alance January 1 Fund Balance December 31 ($17,462) ($17,462) 1 1 1 69 1 B City of Brooklyn Center Police Drug Forfeiture Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Forfeited drug money $20,008 $20,008 $14,307 Investment earnings 1,714 1,714 945 Change in fair value of investments (634) (634) 88 Total Revenues 21,088 21,088 15,340 Expenditures Supplies 8,788 8,788 Services and other charges 2,574 2,574 Capital outlays 9,196 9,196 Total Expenditures 20,558 20,558 Excess or Deficiency of Revenues Over Expenditures 530 530 15,340 Fund Balance January 1 $25,415 25,415 10,075 Equity Transfer In Fund Balance December 31 $25,415 $25,945 $530 $25,415 1 1 1 1 70 B City of Brooklyn Center Community Development Block Grant Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actuai Over or Under(-) 1998 Budget Actual Budget Actual Revenues IntergovernmentaL Federal Grants $240,809 $77,736 ($163,073) $171,573 Total Revenues 240,809 77,736 (163,073) 171,573 Other Financinq Uses Operating transfers out (240,809) (77,736) 163,073 (171,573) Excess or Deficiency of Revenues Over Other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 1 1 1 1 1 71 B-10 City of Brooklyn Center City Initiatives Grant Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1999 1999 Actual Over or Under(-) 1998 Budget Actual Budget Actual Revenues Intergovernmental $112,852 $112,852 $169,490 Investment earnings 2,908 2,908 3,354 Change in fair value of investments (714) (714) 182 Miscellaneous 33,211 33,211 2,395 Total Revenues 148,257 148,257 175,421 Expenditures Personal services 13,935 13,935 49,612 t Supplies 294 294 2,053 Services and other charges 95,612 95,612 68,992 Capital outlays 54,633 1, 393 Total Expenditures 109,841 109,841 176,683 1 Excess or Deficiency of Revenues over Expenditures 38,416 38,416 (1,262) Fund Balance January 1 $31,995 31,995 33,257 Fund Balance December 31 $31,995 $70,411 $38,416 $31,995 72 City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the accumulation of resources for, and the payment of principal and interest on long-term general obligation debt other than revenue bonds and the City's liability for compensated absences. This fund type utilizes the modified accrual basis of accounting. Revenues are reco nized in 9 the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the principal and interest are due. The City's Debt Service Funds included in this section are: General Obliaation Bonds F�and: This fund is used a to ccount for the accumulation of resources for payment of general obligation bonds and interest thereon. Tax Increment Bonds Fund: This fu nd is used to account for the accumulation of resources for payment of tax increment general obligation bonds and interest thereon. These bonds were sold to finance the purchase and redevelopment of the historic Earle Brown Farm and other various redevelopment projects within the City. Snecial Assessment Bonds Fund: This fund is used to account for the accumulation of resources for the payment of special assessment bonds. These bonds were sold to finance certain public improvements such as residential streets and storm sewers or the provision of services which are to be paid for wholly or in part from special assessments levied against benefited property. 73 C 1 City of Brooklyn Center Debt Service Funds COMBINING BALANCE SHEET December 31, 1999 Generai Tax Speciaf Obiigation increment Assessment Totals Bonds Bonds Bonds 1999 1998 ASSETS Cash and cash equivalents $2,146,691 $1,642,308 $755,920 $4,544,919 $4,254,687 Investments 129,979 273,395 719,987 1,123,361 834,584 Special assessments receivable: Deferred 3,452,530 3,452,530 2,471,774 Delinquent 18,654 18,654 10,007 Due from other funds 26,013 TOTALASSETS $2,276,670 $1,915,703 $4,947,091 $9,139,464 $7,597,065 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $62 $750 $827 $1,639 $1,625 Deferred revenue 3,471,184 3,471,184 2,481,781 Total Liabilities 62 750 3,472,011 3,472,823 2,483,406 Fund Balances: Reserved for debt service 2,276,608 1,914,953 1,475,080 5,666,641 5,113,659 Total Fund Balances 2,276,608 1,914,953 1,475,080 5,666,641 5,113,659 TOTAL LIABILITIES AND FUND BALANCES $2,276,670 $1,915,703 $4,947,091 $9,139,464 $7,597,065 74 C=2 City of Brooklyn Center Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1999 General Tax Speciai Obligation Increment Assessment Totais Bonds Bonds Bonds 1999 1998 Revenues Special assessments $690,538 $690,538 $537,698 intergovernmental $308,310 308,310 308,878 Investment earnings 58,777 $22,129 56,605 137,511 53,428 Change in fair value of investments (4,288) (9,967) (18,343) (32,598) 4,259 Total Revenues 362,799 12,162 728,800 1,103,761 904,263 Expenditures Principal 515,000 1,165,000 405,000 2,085,000 1,285,000 In#erest 521,592 662,232 189,790 1,373,614 1,244,923 Fiscal agent fees 1,818 1,743 10,369 13,930 8,122 Bond issuance costs 32,415 Total Expenditures 1,038,410 1,828,975 605,159 3,472,544 2,570,460 Excess or Deficiency of Revenues Over Expenditures (675,611) (1,816,813) 123,641 (2,368,783) (1,666,197) Other Financina Sources or Uses Proceeds from sale of bonds 1,588,254 Operating transfers in 779,491 1,880,000 262,274 2,921,765 2,882,804 Total Other Financing Sources or Uses 779,491 1,880,000 262,274 2,921,765 4,471,058 Excess or Deficiency of Revenues and Other Sources Over Expenditures and Other Uses 103,880 63,187 385,915 552,982 2,804,861 Fund Balances January 1 2,172,728 1,851,766 1,089,165 5,113,659 2,239,528 Equity Transfer In (Out) 69,270 Fund Balances December 31 $2,276,608 $1,914,953 $1,475,080 $5,666,641 $5,113,659 1 75 City ofi Brookiyn Center, Minnesota I CAPITAL PROJECTS FUNDS The Capital Projects Funds are established to account for all resources used for the construction or acquisition of capital facilities by the City except those financed by Enterprise Funds. This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting period in which they become availabfe and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. The City's Capital Projects Funds included in this section are: Canital Reserve Emeraencv Fund: This fund was established in 1997 to account for monies held in reserve for catastrophic losses. Caqital Imnrovements Fund: This fund was established in 1968 to provide funds, and to account for the expenditure of such funds, for major capital outlays including, but not be limited to, construction or acquisition of ma�or permanent facilities having a relatively long life; and/or to reduce debt incurred for capital outlays. The financing sources of the fund include ad valorem taxation, transfers from other Funds, issuance of bonds, federal and state grants, and investment earnings. Municinal State Aid for Construction Fund: This fund was established to account for the state allotment of gasoline tax collections used for transportation related construction projects. Snecial Assessment Construction Fund: This fund was established to account for the resources and expenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefitted properties. 1 76 D 1 City of Brooklyn Center Capital Projects Funds COMBINING BALANCE SHEET December 31, 1999 Municipal Capital State Aid Special Reserve Capital for Assessment Totals Emergency Improvements Construction Construction Fund Fund Fund Fund 1999 1998 ASSETS Cash and cash equivalents $166,718 $725,940 $273,639 $241,564 $1,407,861 $2,557,518 Investments 972,231 4,233,388 1,595,749 1,408,706 8,210,074 11,164,714 Accounts receivable 2,062 2,062 3,490 Special assessments: Deferred 392,727 392,727 510,077 Delinquent 87,817 87,817 101,942 Due from other funds 30,303 131,948 49,737 43,907 255,895 195,431 t Due from other governments 364,251 364,251 150,569 Advance to otherfunds 1,076,343 593,069 1,669,412 1,749,382 TOTALASSETS $1,169,252 $6,167,619 $2,876,445 $2,176,783 $12,390,099 $16,433,123 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $758,268 $2,883 $69,317 $830,468 $517,529 Contracts payable 68,087 6,312 80,935 155,334 248,016 Accrued salaries and wages 162 5,346 5,508 3,115 Deferred revenue 364,251 480,544 844,795 749,745 Total Liabilities 826,355 373,608 636,142 1,836,105 1,518,405 Fund 8alances: Reserved: Advances to other funds 1,076,343 593,069 1,669,412 1,749,381 Bond proceeds 5,937,869 Unreserved $1,169,252 4,264,921 1,909,768 1,540,641 8,884,582 7,227,468 Total Fund Balances 1,169,252 5,341,264 2,502,837 1,540,641 10,553,994 14,914,718 TOTAL LIABILITIES AND FUND BALANCES $1,169,252 $6,167,619 $2,876,445 $2,176,783 $12,390,099 $16,433,123 77 D-2 City of Brooklyn Center Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1999 Municipal Capital State Aid Special Reserve Capital for Assessment Emergency Improvements Construction Construction Totals Fund Fund Fund Fund 1999 1998 Revenues Special assessments $217,306 $217,306 $477,344 Intergovernmental $2,500,000 $218,728 2,718,728 392,680 Investmentearnings $64,867 266,820 121,417 49,624 502,728 897,991 Change in fair value of investments (28,728) (177,721) (56,537) (25,867) (288,853) 83,030 Sale of property 77,157 Miscellaneous 21,004 21,004 74,136 Total Revenues 36,139 2,610,103 283,608 241,063 3,170,913 2,002,338 Expenditures Personal services 11,726 11,359 214,776 237,861 228,765 Supplies 11,421 448 11,869 16,026 Services and other charges 455,031 206,008 345,134 1,006,173 1,079,332 Capital outlay 7,240,316 287,038 1,533,297 9,060,651 4,808,531 Total Expenditures 7,718,494 504,405 2,093,655 10,316,554 6,132,654 Excess or Deficiency of Revenues Over Expenditures 36,139 (5,108,391) (220,797) (1,852,592) (7,145,641) (4,130,316) Other Financina Sources or Uses(-) Proceeds from sale of bonds 1,585,000 1,585,000 1,081,746 Operating transfers in 75,000 424,917 499,917 469,197 Total Other Financing Sources or Uses 75,000 2,009,917 2,084,917 1,550,943 Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 36,139 (5,033,391) (220,797) 157,325 (5,060,724) (2,579,373) Fund Balances January 1 1,133,113 9,899,655 2,723,634 1,158,316 14,914,718 17,213,361 Equity Transfers In 475,000 225,000 700,000 350,000 Equity Transfers (Out) (69,270) Fund Balances December31 $1,169,252 $5,341,264 $2,502,837 $1,540,641 $10,553,994 $14,914,718 7$ S-3 City of Brookiyn Center Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1999 Project (Over) Under 1999 to Date Expended Project Appropriations Expenditures Expenditures Appropriations Central garage improvements $1,234,311 $26,740 $1,273,607 ($39,296) Civic Center Addition 239,960 62,751 62,751 177,209 East fire station project 1,106,000 696,879 953,440 152,560 West fire station project 2,539,000 2,130,897 2,755,180 (216,180) Police station project 4,345,000 3,227,497 4,717,536 (372,536) Telephone system 182,465 (537) 206,879 (24,414) E. B. Heritage Center 2,500,000 1,330,799 2,453,594 46,406 Central Park improvement 90,000 125,778 129,915 (39,915) Park Improvements 105,600 49,341 49,341 56,259 Park shelter renovations 28,654 36,522 138,455 (109,801) Lions Park improvements 30,200 31,827 31,827 (1,627) Totals $12,401,190 $7,718,494 $12,772,525 ($371,335) S-4 City of Brooklyn Center Municipal State Aid for Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1999 Project (Over) Under 1999 to Date Expended Project Appropriation Expenditures Expenditures Appropriations 69th Ave., Shingle Creek Pkwy to Dupont Ave. improvement $1,774,882 $4,856 $1,692,411 $82,471 69th Ave. fence painting 25,000 14,115 14,115 10,885 Brooklyn Boulevard improvements 600,000 105,673 318,053 281,947 John Martin Drive street improvements 46,946 64 45,973 973 Landscape nodes upgrades 48,963 470 44,991 3,972 o MAC Park Nature Trail 6,250 6,505 6,505 (255) Signal lamp replacement program 81,289 5,855 81,289 0 53rd Avenue trail 245,912 195,550 196,971 48,941 Miscellaneous sidewalk retaining wall replacements 54,747 24,360 24,360 30,387 Miscellaneous bituminous repairs 60,000 29,497 29,497 30,503 Paint signal poles 25,000 22,604 22,604 2,396 S.E. Neighborhood improvements 168,983 106,330 106,330 62,653 73rd Avenue improvements 29 29 (29) Earle Brown Drive improvements 119,398 59,965 59,965 59,433 Bellvue neighborhood improvements 211,537 (71,468) 154,260 57,277 Totals $3,468,907 $504,405 $2,797,353 $671,554 S-5 City of Brooklyn Center Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1999 Project (Over) Under 1999 to Date Expended Project Appropriations Expenditures Expenditures Appropriations Logan, James and Knox Avenues improvements $746,847 $58 $243,661 $503,186 James 67th Avenue overlay 150,968 286 156,855 (5,887) Orchard Lane West improvements 1,893,194 107,325 1,932,904 (39,710) Diseased tree removals 28,275 28,182 (28,182) Reforestation of 1999 improvement projects 52,958 9,773 9,773 43,185 I Bellvue neighborhood street improvements 995,289 (79,122) 823,772 171,517 St. AI's neighborhood street improvements 391,816 (17,056) 349,484 42,332 68th Avenue and Lee street improvements 196,858 328 197,186 (328) Southeast neighborhood 1,634,182 1,223,420 1,264,083 370,099 John Martin Drive 129,162 188 131,356 (2,194) 73rd Avenue improvement 2,789 2,789 (2,789) Garden City improvement 37,000 37,000 (37,000) Azelia Avenue improvement 76,244 73,590 73,590 2,654 Earle Brown Drive improvement 223,916 223,916 223,916 0 Camden 66th Avenue improvement 548,035 482,885 490,111 57,924 Totals $7,039,469 $2,093,655 $5,964,662 $1,074,807 1 City of Brooklyn Center, Minnesota ENTERPRISE FUNDS The Enterprise Funds were established to account for the financing of self-supporting activities of the City which render services on a user charge basis to the general public. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become objectively measurable. Expenses are recognized in the period incurred, if objectively measurable. The City's Enterprise Funds included in this section are: Municinal Liauor Fund: This fund accounts for the operations of the City's three municipal off-sale liquor stores. Golf Course Fund: This fund accounts for operations of Centerbrook Golf Course, a 9 hole, par 3 course owned by the City. Earle Brown Heritaae Center Fund: This fund accounts for the operation of a pioneer farmstead which has been historically preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1,000 people in either banquet or theater style. The "Inn On The Farm" is a bed and breakfast with ten rooms available to complement convention activities or be rented individually. Two of the barns have been restored as unique office settings which have found a niche in the market. Recvclina and Refuse Fund: This fund accounts for the operation of a state-mandated recycling program. Expansion into refuse collection will take place only when there is a clear advantage to be achieved by it. Water Utilitv Fund: This fund accounts for the provision of water to custom�rs. Administration, wells, water storage, and distribution are included. Sanitarv Sewer Fund: This fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan Council Environmental Services whose fees represent about 75% of this fund's expenses. Storm Drainaae Fund: This fund accounts for the operations and improvements of the storm water drainage system. It incorporates not only the storm sewer system, but also water structures such as holding ponds and facilities to improve water quality. Fees are based upon the amount of water running off a property and vary with both size and absorption characteristics of the parcel. 82 City of Brooklyn Center Enterprise Funds COMBINING BALANCE SHEET December 31, 1999 E. Brown Municipal Golf Heritage Liquor Course Center ASSETS Fund Fund Fund Current Assets: Cash and cash equivalents $64,230 $9,733 $4,335 I nvestments 348,321 54,134 Accounts receivable net 2,190 380,114 Accrued revenue Special assessments receivable: Deferred Delinquent Due from other governments Inventories 354,788 11,771 33,458 Prepaid expenses 5,848 2,555 Total Current Assets 775,377 75,638 420,462 Fixed Assets: Mains and lines Structures 293,531 317,090 11,295,029 Equipment 133,531 28,077 967,442 Land 100,878 1,391,711 1,493,300 Land improvements 12,833 77,450 386,745 540,773 1,814, 328 14,142,516 Less: Accumulated Depreciation 272,885 153,668 3,034,592 Total Net Fixed Assets 267,888 1,660,660 11,107,924 Total Assets $1,043,265 $1,736,298 $11,528,386 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable $100,478 $7,509 $438,058 Contracts payable Due to other funds 545,000 Accrued salaries payable 14,820 1,928 23,490 Accrued vacation and sick pay 39,759 6,039 22,316 Accrued interest payable Current portion of long-term debt 26,343 50,000 Total Current Liabilities 181,400 65,476 1,028,864 Long-Term Liabilities: Advances from other funds 1,000,000 Other long term liabilities Bonds payable Total Long-term Liabilities 1,000,000 Fund Equity: Contributions 643,725 10, 760,155 Retained earnings (Deficits) Reserved: Debt service Special assessments Unreserved 861,865 27,097 (260,633) Total Fund Equity 861,865 670,822 10,499,522 Total Liabilities and Fund Equity $1,043,265 $1,736,298 $11,528,386 83 E-1 Recycling Water Sanitary Storm Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund 1999 1998 $8,501 $413,103 $195,058 $215,983 $910,943 $1,113,731 49,573 2,409,052 1,137,498 24,624 4,023,202 3,840,168 15,174 112,004 180,763 71,359 761,604 623,545 27,347 139,270 321,655 145,827 634,099 614,676 118,794 4,351 33,275 156,420 144,708 13,833 13,833 10,608 14,039 14,039 104,101 41,325 441,342 357,673 116,740 125,143 126,079 100,595 3,247,381 1,970,104 491,068 7,080,625 6,935,289 11,714,420 9,768,706 9,029,388 30,512,514 27,496,552 5,719,320 2,775,467 20,400,437 18,976,575 144,789 192,136 10,098 1,476,073 1,298,709 23,093 3,389 287,158 3,299,529 3,299,529 13,857 10,786 501,671 144,649 17,615,479 12,739,698 9,337,430 56,190,224 51,216,014 4,983,371 2,925,915 243,814 11,614,245 10,634,020 12,632,108 9,813,783 9,093,616, 44,575,979 40,581,994 $100,595 $15,879,489 $11,783,887 $9,584,684 $51,656,604 $47,517,283 $1,�00 $91,386 $59,719 $255,252 $953,402 $582,662 48,383 22,554 14,220 85,157 59,336 545,000 385,000 10,290 3,969 54,497 100,941 t 9,796 5,864 83,774 77,346 26,467 26,467 29,831 180,000 256,343 249,969 1,000 159,855 92,106 475,939 2,004,640 1,485,085 1,000,000 1,076,343 168,906 168,906 225,208 1,050,000 1,050,000 1,230,000 168,906 1,050,000 2,218,906 2,531,551 4,997,510 5,668,426 863,964 22,933,780 21,938,312 239,110 239,110 237,558 132,628 4,351 33,275 170,254 155,316 99,595 10,420,590 6,019,004 6,922,396 24,089,914 21,169,461 99,595 15,550,728 11,691,781 8,058,745 47,433,058 43,500,647 $100,595 $15,879,489 $11,783,887 $9,584,684 $51,656,604 $47,517,283 84 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 E. Brown Municipal Golf Heritage Liquor Course Center Fund Fund Fund Operatina Revenues Sales and user fees $3,560,613 $355,534 $3,490,692 Cost of sales 2,694,622 31,860 559,005 Gross Margin 865,991 323,674 2,931,687 Operatina Exqenses Personal services 387,260 145,159 1,902,030 Supplies 16,133 25,703 196,100 Other services 85,923 56,704 539,705 Insurance 8,146 6,877 27,125 Utilities 25,433 13,320 149,679 Rent 69,922 166,250 Depreciation 39,821 13,847 376,209 Total Operating Expenses 632,638 261,610 3,357,098 Operating Income (Loss) 233,353 62,064 (425,411) Nonoperatina Revenues or Expenses(-) Investment earnings 18,910 4,270 Change in fair value of investments (7,266) (1,672) Special assessments I ntergovernmental Other revenue 6,620 Interest and fiscal agent fees (2,593) (23,233) Total Nonoperating 15,671 2,598 (23,233) Income (Loss) Before Operating Transfers 249,024 64,662 (448,644) Operating Transfers In (Out) (75,000) 4,357 Net Income (Loss) 174,024 64,662 (444,287) Depreciation on contributed assets that reduces contributed capital 318,420 Retained Earnings (Deficits) Jan. 1 687,841 (37,565) (134,766) Retained Earnings (Deficits) Dec. 31 $861,865 $27,097 ($260,633) 85 E-2 1 1 Recycling Water Sanitary Storm Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund 1999 1998 $210,764 $1,354,179 $2,384,106 $999,867 $12,355,755 $10,699,781 3,285,487 2,880,024 210,764 1,354,179 2,384,106 999,867 9,070,268 7,819,757 291,786 116,939 99,798 2,942,972 2,613,031 114,297 11,157 363,390 345,593 213,297 291,688 1,618,912 54,945 2,861,174 2,642,884 85 6,406 4,522 1,819 54,980 53,177 109,012 24,618 322,062 315,484 236,172 134,107 356,572 203,019 75,843 1,065,311 911,003 213,382 1,169,761 1,979,167 232,405 7,846,061 7,015,279 (2,618) 184,418 404,939 767,462 1,224,207 804,478 4,189 148,205 85,103 37,999 298,676 267,953 (1,918) (72,990) (38,885) (11,820) (134,551) 24,905 22,415 338 268,722 291,475 22,767 1,092,809 1,092,809 907,191 460 374 7,454 56,688 (65,078) (90,904) (123,502) 2,271 98,090 46,556 1,323,006 1,464,959 1,156,002 (347) 282,508 451,495 2,090,468 2,689,166 1,960,480 (70,643) 425,000 (347) 282,508 451,495 2,090,468 2,618,523 2,385,480 318,420 299,430 99,942 10,270,7�0 5,571,860 5,104,313 21,562,335 18,877,425 $99,595 $10,553,218 $6,023,355 $7,194,781 $24,499,278 $21,562,335 t 86 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1999 E. Brown Municipal Golf Heritage Liquor Course Center Cash flows from operatina activities: Fund Fund Fund Operating income (loss) $233,353 $62,064 ($425,411) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 39,821 13,847 376,209 Changes in assets and liabilities: Receivables 1,596 40 (110,232) Inventories (46,254) (5,892) (9,688) Prepaid expenses 3,521 3,291 Payables (14,880) 4,709 231,183 Accrued expenses 7,601 4,001 (55,190) Accrued interest payable Other nonoperating income 6,620 Net cash provided by (used for) operating activities 231,378 78,769 10,162 Cash flows from noncaoital financin4 activities: Proceeds from borrowings on long term debt Proceeds from borrowings due to other funds 160,000 Principal repayments on long term debt Principal repayments on advance (29,969) (50,000) Interest paid on advance from other funds (2,593) Interest paid on due to other funds (23,233) Operating transfers in (out) (75,000) 4,357 Net cash provided by (used for) noncapital financing activities (107,562) (50,000) 141,124 Cash flows from caoital and related financina activities: Capital contributions 1,234,880 Acquisition and construction of capital assets (1,972) (4,358) (1,405,140) Principal paid on revenue bonds Interest paid on reve�ue bonds Nef cash used for capital and related financing activities (1,972) (4,358) (170,260) Cash flows from investinq activities: Investments purchased (205,230) (31,895) Investments sold or matured 73,033 5,711 Interest on investments 18,910 4,270 Net cash provided by (used for) investing activities (113,287) (21,914) Net increase (decrease) in cash and cash equivalents 8,557 2,497 (18,974) Cash and cash equivalents at beginning of the year 55,673 7,236 23,309 Cash and cash equivalents at end of the year $64,230 $9,733 $4,335 Non cash items: Change in fair value of investments ($7,266) ($1,672) $7 E-3 Recycling Water Sanitary Storm Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund 1999 1998 ($2,618) $184,418 $404,939 $767,462 $1,224,207 $804,478 356,572 203,019 75,843 1,065,311 911,003 (931) (56,508) 65,860 17,818 (82,357) 179,620 (21,835) (83,669) (17,292) (5,876) 936 15,960 (17,882) (54,756) 60,104 188,083 396,561 169,145 2,461 1,144 (33) (40,016) 55,010 (3,364) (3,364) (3,163) 22,875 338 1,361,905 1,391,738 986,646 (21,431) 433,227 729,528 2,407,714 3,869,347 3,101,407 t 225,208 160, 000 (56,302) (56,302) (79,969) (78,071) (2,593) (4,691) (23,233) (45,211) (70,643) 425,000 (56,302) (72,740) 522,235 1,234,880 1,387, 582 (580,004) (605,891) (2,382,921) (4,980,286) (5,166,863) (170,000) (170,000) (165,000) (65,078) (65,078) (73,600) (580,004) (605,891) (2,617,999) (3,980,484) (4,017,881) (29,208) (1,419,406) (670,210) (14,509) (2,370,458) (3,552,017) 40,556 1,337,565 439,826 156,180 2,052,871 2,977,393 4,189 148,205 85,103 37,999 298,676 267,953 15,537 66,364 (145,281) 179,670 (18,911) (306,671) 1 (5,894) (136,715) (21,644) (30,615) (202,788) (700,910) 14,395 549,818 216,702 246,598 1,113,731 1,814,641 $8,501 $413,103 $195,058 $215,983 $910,943 $1,113,731 ($1,918) ($72,990) ($38,885) ($11,820) ($134,551) $24,905 1 E-4 City of Brooklyn Center Municipal Liquor Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1999 1998 Sales Liquor $1,137,459 $1,013,416 Wine 346,560 320,164 Beer 1,852,088 1,670,662 Soft drinks 65,162 58,511 Other merchandise 159,344 137,832 Total Sales 3,560,613 3,200,585 Less: Cost of Sales 2,694,622 2,433,185 Gross Margin 865,991 767,400 Oqeratina Expenses Personal services 387,260 396,389 Supplies 16,133 11,699 Other services 85,923 54,522 Insurance 8,146 9,679 Utilities 25,433 24,572 Rent 69,922 55,003 Depreciation 39,821 40,787 Total Operating Expenses 632,638 592,651 Operating Income 233 353 174 749 Nonoperatina Revenues or Exnenses(-1 Investment earnings 18,910 12,139 Change in fair value of investments (7,266) 1,128 Other revenue 6,620 8,456 Interest and fiscal agent fees (2,593) (4,691) Total Nonoperating 15,671 17,032 Operating Transfers to Other Funds 75,000 75,000 Net Income 174,024 116,781 Retained Earnings January 1 687,841 571,060 Retained Earnings December 31 $861,865 $687,841 89 E-5 City of Brooklyn Center Golf Course Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1999 1998 Operatina Revenues Green fees $269,653 $218,562 Rentals 12,791 10,402 Leagues 12,125 7,972 Golf lessons 2,918 5,487 Concessions 30,010 25,610 Merchandise 24,691 19,975 Pop machine 1,599 1,232 Misceilaneous 1,747 1,414 Total Operating Revenues 355,534 290,654 Less: Cost of Sales 31,860 36,211 Gross Margin 323,674 254,443 Operatina Exqenses Personal services 145,159 121,482 Supplies 25,703 18,484 Other services 56,704 49,390 Insurance 6,877 6,280 Utilities 13,320 14,141 Depreciation 13,847 12,697 Total Operating Expenses 261,610 222,474 Operating Income 62,064 31,969 Nonooeratina Revenues or Expensesf-1 Investment earnings 4,270 2,993 Change in fairvalue of investments (1,672) 278 Total Nonoperating 2,598 3,271 Net Income 64,662 35,240 Retained Earnings (Deficit) January 1 (37,565) (72,805) Retained Earnings (Deficit) December 31 $27,097 ($37,565) 90 E 6 City of Brooklyn Center Earle Brown Heritage Center Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1999 1998 Operatina Revenues Conventions $811,202 $667,981 Catering 2,418,368 1,614,577 Inn on the Farm 209,584 226,730 Office Rents 51,538 30,797 Total Operating Revenues 3,490,692 2,540,085 Less: Cost of Sales 559,005 410,628 Gross Margin 2,931,687 2,129,457 Operatina Expenses Personal services 1,902,030 1,398,512 Supplies 196,100 159,880 Other services 539,705 412,878 Insurance 27,125 24,504 Utilities 149,679 136,826 Rent 166,250 79,104 Depreciation 376,209 354,590 Total Operating Expenses 3,357,098 2,566,294 Operating Loss (425,411) (436,837) Nonoperatinca Revenues or Exaenses(-1 Interest and fiscal agent fees (23,233) (20,005) Total Nonoperating (23,233) (20,005) Operating Transfers from Other Funds 4,357 Net Loss (444,287) (456,842) Depreciation on contributed assets that reduces contributed capital 318,420 299,430 Retained Earnings (Deficit) January 1 (134,766) 22,646 Retained Earnings (Deficit) December 31 ($260,633) ($134,766) 91 E-7 City of Brooklyn Center Recycling and Refuse Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1999 1998 Oaeratina Revenues Recycling service fees $210,764 $209,007 Oqeratina Expenses Other services 213,297 214,575 Insurance 85 116 Total Operating Expenses 213,382 214,691 Operating Loss (2,618) (5,684) Nonoperatina Revenues Investment earnings 4,189 4,295 Change in fair value of investments (1,918) 399 Total Nonoperating 2,271 4,694 Net Loss (347) (990) Retained Earnings January 1 99,942 100,932 Retained Earnings December 31 $99,595 $99,942 1 g2 E-8 City of Brooklyn Center Water Utility Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1999 1998 Operatina Revenues Service to customers $1,211,746 $1,111,267 Sale of ineters 25,241 24,922 Penalties 71,717 78,404 Rentals 45,475 15,225 Total Operating Revenues 1,354,179 1,229,818 Oaeratina Exaenses Personal services 291,786 388,388 Supplies 114,297 140,728 Contractual services 291,688 217,885 Insurance 6,406 6,735 Utilities 109,012 116,060 Depreciation 356,572 255,689 Total Operating Expenses o 1,169,761 1,125,485 Operating Income 184,418 104,333 Nonoperatina Revenues or Expenses(-) Investment earnings 148,205 167,803 Change in fair value of investments (72,990) 15,597 Special assessments (for hookups delinquencies) 22,415 15,156 Other 460 41,232 Total Nonoperating 98,090 239,788 Net Income 282,508 344,121 Retained Earnings January 1 10,270,710 9,926,589 Retained Earnings December 31 $10,553,218 $10,270,710 93 E-9 City of Brooklyn Center Sanitary Sewer Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1 1999 1998 Oqeratina Revenues Service to customers $2,384,106 $2,289,620 t Oqeratina Exoenses Personal services 116,939 206,760 Supplies 11,157 13,748 Contractual services 187,113 130,100 Metropolitan Council Environmental Services 1,431,799 1,468,099 Insurance 4,522 4,158 Utilities 24,618 23,885 Depreciation 203,019 185,732 Total Operating Expenses 1,979,167 2,032,482 Operating Income 404,939 257,138 Nonoqeratina Revenues Investment earnings 85,103 80,723 Change in fair value of investments (38,885) 7,503 Special assessments (for hookups delinquencies) 338 4,942 Total Nonaperating 46,556 93,168 Net Income 451,495 350,306 Retained Earnings January 1 5,571,860 5,221,554 Retained Earnings December 31 $6,023,355 $5,571,860 1 94 E-10 City of Brooklyn Center Storm Drainage Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 1 1999 1998 Operatina Revenues Service to customers $999,867 $940,012 Operatina Exoenses Personal services 99,798 101,500 Supplies 1,054 Contractual services 54,945 95,435 Insurance 1,819 1,705 Depreciation 75,843 61,508 Total Operating Expenses 232,405 261,202 Operating Income 767,462 678,810 Nonoperatina Revenues or Expenses(-) Investment earnings 37,999 Change in fair value of investments (11,820) Special assessments 265,626 Special assessments interest 3,096 2,669 Intergovernmental 1,092,809 907,191 Other revenue 374 7,000 Interest and fiscal agent fees (65,078) (98,806) Total Nono eratin 1 323 006 818 054 t p 9 Operating Transfers from Other Funds 500,000 Net Income 2,090,468 1,996,864 Retained Earnings January 1 5,104,313 3,107,449 Retained Earnin s December 31 7 194 781 5 104 313 9 95 City of Brooklyn Center, Minnesota INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost rei.mbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. The City's Internal Service Funds included in this section are: 1 Public Emnlovees Retirement Fund: This fund provides certain health care insurance benefits for City employees who retire before age 65. Substantially all of the City's full-time police and fire employees and all other full-time employees hired before July 1, 1989, may be eligible for those benefits from the time they qualify for an unreduced PERA pension until they reach age 65 or become eligible for Medicare. In the event that future costs would exceed earnings, other funds would be charged for the costs associated with their employees. Central Garaae Fund: This fund was established to account for the acquisition and maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment maintenance, repair, and replacement will be provided from rental rates which the Central Garage charges City operating departments for use of the equipment. 96 F-1 City of Brooklyn Center internal Service Funds COMBINING BALANCE SHEET December 31, 1999 Public Employees Central Retirement Garage Totals ASSETS Fund Fund 1999 1998 Current Assets: Cash and cash equivalents $203,765 $541,593 $745,358 $971,196 Investments 1,188,274 3,158,352 4,346,626 4,239,709 Accounts receivable 1,323 20,170 21,493 6,797 Inventories 12,572 12,572 4,585 Total CurrentAssets 1,393,362 3,732,687 5,126,049 5,222,287 Fixed Assets: Equipment 5,583,067 5,583,067 5,142,635 Less: Accumulated depreciation 2,556,258 2,556,258 2,396,179 Total net fixed assets 3,026,809 3,026,809 2,746,456 TOTALASSETS $1,393,362 $6,759,496 $8,152,858 $7,968,743 LIABILITIES AND FUND EQUITY Current Liabilities: Accounts payable $1,349 $27,837 $29,186 $80,221 Accrued salaries payable 8,981 8,981 7,516 Accrued vacation and sick pay 28,522 28,522 28,716 Accrued health insurance liability 1,369,891 1,369,891 1,229,333 Total Current Liabilities 1,371,240 65,340 1,436,580 1,345,786 Fund Equity: Contributions: General Fund 869,689 869,689 909,640 Debt Service Funds 1,222,544 1,222,544 1,278,703 Capital Projects Funds 7,395 7,395 7,735 Enterprise Funds 538,570 538,570 563,310 General Fixed Asset Account Group 536,328 536,328 560,965 Total Contributions 3,174,526 3,174,526 3,320,353 Retained Earnings (Deficits): Unreserved 22,122 3,519,630. 3,541,752 3,302,604 Total Fund Equity (Deficits) 22,122 6,694,156 6,716,278 6,622,957 TOTAL LIABILITIES AND FUND EQUITY $1,393,362 $6,759,496 $8,152,858 $7,968,743 97 F=2 City of Brooklyn Center Internal Service Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1999 Pubiic Employees Central Retirement Garage Totals Fund Fund 1999 1998 Operatinq Revenues Billings to departments $967,480 $967,480 $974,664 Sales 69,946 69,946 56,920 Total Operating Revenues 1,037,426 1,037,426 1,031,584 Operatina Expenses Personal services $156,912 268,958 425,870 282,596 Supplies 191,104 191,104 193,448 Other services 57,008 57,008 71,988 Insurance 32,672 32,672 30,537 Utilities 3,559 3,559 4,554 Depreciation 506,396 506,396 511,131 Total Operating Expenses 156,912 1,059,697 1,216,609 1,094,254 Operating Income (Loss) (156,912) (22,271) (179,183) (62,670) Nonoperatinq Revenues or Expenses (-1 Investment earnings 71,073 208,538 279,611 292,172 Change in fair value of investments (31,627) (95,480) (127,107) 27,157 Total Nonoperating 39,446 113,058 152,504 319,329 lncome (Loss) Before Operating Transfers (117,466) 90,787 (26,679) 256,659 Operating Transfers In 120,000 120,000 Net Income (Loss) 2,534 90,787 93,321 256,659 Depreciation on contributed assets that reduces contributed capital 145,827 145,827 147,320 Retained Earnings (Deficit) January 1 19,588 3,283,016 3,302,604 2,898,625 Retained Earnings (Deficit) December31 $22,122 $3,519,630 $3,541,752 $3,302,604 gg F 3 City of Brooklyn Center Internal Service Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1999 Employee Central Retirement Garage Totals Fund Fund 1999 1998 Cash flows from oqeratinq activities: Operating income (loss) ($156,912) ($22,271) ($179,183) ($62,670) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 506,396 506,396 511,931 Changes in assets and liabilities: Accounts receivable (1,323) (13,373) (14,696) (2,637) Inventories (7,987) (7,987) 1,505 Accounts payable 1,349 (52,384) (51,035) 68,543 Accrued salaries and leave 1,271 1,271 3,326 t Accrued health insurance liability 140,558 140,558 11,104 Net cash provided by (used for) operating activities (16,328) 411,652 395,324 530,302 Cash flows from noncapital financina activities: Operating transfers in 120,000 120,000 Net cash provided by noncapital financing activities 120,000 120,000 Cash flows from canital and related financina activities: Acquisition of fixed assets (786,750) (786,750) (765,554) Net cash used for capital and related financing activities (786,750) (786,750) (765,554) Cash flows from (used forl investinq activities: Investments purchased (700,127) (1,860,891) (2,561,018) (3,901,300) Investments sold or matured 496,376 1,830,619 2,326,995 3,232,985 Interest on investments 71,073 208,538� 279,611 292,172 Net cash provided by (used for) investing activities (132,678) 178,266 45,588 (376,143) Net increase (decrease) in cash and cash equivalents (29,006) (196,832) (225,838) (611,395) Cash and cash equivalents at beginning of the year 232,771 738,425 971,196 1,582,591 Cash and cash equivalents at end of the year $203,765 $541,593 $745,358 $971,196 t Non cash items: Change in fair value of investments ($31,627) ($95,480) ($127,107) $27,157 99 t 1 City of Brooklyn Center, Minnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, and which are tangible in nature, have a life longer than the current fiscal year, and have a significant value. Depreciation is not recorded t on those assets. 1 1 t 1 1 n 100 S-6 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1999 January 1, December 31, 1999 1999 Balance Acquisitions Disposals Balance Investments in General Fixed Assets Land $2,473,864 $2,473,864 1 Buildings and improvements 8,776,453 $6,090,518 $150,247 14,716,724 Park improvements 3,354,926 276,113 30,798 3,600,241 Furniture 1,360,475 1,360,475 Departmental equipment 1,078,008 205,357 73,255 1,210,110 Total Investments in General Fixed Assets $17,043,726 $6,571,988 $254,300 $23,361,414 Sources of Investments Generallndebtedness $3,373,771 $6,055,274 $50,338 $9,378,707 General Fund revenues 5,657,953 254,834 84,419 5,828,367 Liquor store income 152,614 2,277 150,337 Contributions 216,245 5,557 3,226 218,576 Capital projects funds 6,902,244 256,323 102,985 7,055,583 Federal grants 740,899 11,055 729,844 Total Sources of Investments $17,043,726 $6,571,988 $254,300 $23,361,414 t 1 101 S-7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1999 Buildings and Park Furniture and Function Land Improvements Improvements Equipment Total General overnment 661678 661678 J Government building $406,070 $13,887,241 $357,511 414,198 15,065,020 Public safety 2,500 115,744 1,026,282 1,144,526 Public works 5,450 170,664 176,114 Recreation 35,180 204,520 239,700 Parks 2,065,294 673,109 3,242,730 93,243 6,074,376 Totals $2,473,864 $14,716,724 $3,600,241 $2,570,585 $23,361,414 102 S-8 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITI( For the Year Ended December 31, 1999 General Fixed General Fixed Assets Assets January 1, December 31, Function 1999 Additions Deductions 1999 General government $662,917 $57,593 $58,832 $661,678 Government building 9,095,387 6,132,058 162,425 15,065,020 Public safety 1, 072, 003 72, 523 1,144, 526 Public works 141,112 49,425 14,423 176,114 Recreation 197,266 42,434 239,700 Parks 5,875,041 217,955 18,620 6,074,376 Totals $17,043,726 $6,571,988 $254,300 $23,361,414 103 1 City of Brooklyn Center, Minnesota GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long-Term Debt Account Group was established to account for the City's unmatured general obligation long-term debt that is secured by the full faith and credit of the City and is not the primary obligation of an Enterprise Fund of the City. 1 1 1 1 1 1 104 G City of Brooklyn Center COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT December 31, 1999 December 31, 1999 1998 Amounts Available and to be Provided Amounts Available in Debt Service Funds $5,666,641 $5,113,659 Amounts to be Provided: From future property tax levies 6,885,867 8,151,404 From future gas tax allocations 1,790,000 1,980,000 From future tax increments 8,505,047 9,733,233 From future special assessments 4,444,920 2,830,835 Total Amounts Available and to be Provided $27,292,475 $27,809,131 General Lona-Term Debt Pavable General obligation bonds $10,915,000 $11,430,000 Other long term liabilities 37,475 54,131 Tax increment bonds 10,420,000 11,585,000 General obligation special assessment bonds with governmental commitment 5,920,000 4,740,000 Total General Long-Term Debt $27,292,475 $27,809,131 1 1 105 I H City of Brooklyn Center SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1999 Totai Debt General Obligation Bonds Tax Increment Bonds Special Assessment Bonds Service Requirements Year Principal Interest Principal Interest Principal Interest Principal Interest 2000 $2,155,000 $424,981 $1,280,000 $595,554 $535,000 $231,972 $3,970,000 $1,252,507 2001 655,000 377,651 1,450,000 519,409 700,000 229,966 2,805,000 1,127,026 2002 680,000 350,749 1,540,000 433,892 700,000 199,727 2,920,000 984,368 2003 705,000 322,356 1,645,000 340,413 705,000 168,614 3,055,000 831,383 2004 740,000 292,318 1,775,000 237,302 700,000 136,763 3,215,000 666,383 2005 775,000 260,374 360,000 171,123 705,000 104,144 1,840,000 535,641 2006 810,000 226,412 360,000 147,362 605,000 73,520 1,775,000 447,294 2007 540,000 196,640 385,000 122,585 515,000 47,386 1,440,000 366,611 2008 565,000 171,219 385,000 96,694 355,000 27,205 1,305,000 295,118 2009 595,000 144,100 400,000 70,200 250,000 13,292 1,245,000 227,592 2010 625,000 115,274 415,000 42,694 150,000 3,750 1,190,000 161,718 2011 655,000 84,710 425,000 14,344 1,080,000 99,054 2012 690,000 52,257 690,000 52,257 2013 725,000 17,762 725,000 17,762 $10,915,000 $3,036,803 $10,420,000 $2,791,572 $5,920,000 $1,236,339 $27,255,000 $7,064,714 1 106 City of Brooklyn Center, Minnesota 1 STATISTICAL SECTION The statistical section presents comparative statistical data for the past ten years, and other pertinent information involving taxes, revenues, expenditures, bonded debt, property valuations, insurance coverage and miscellaneous statistics. This information is intended to be useful and of interest to investors in City bonds, financial institutions, and others interested in municipal government financial statistics. 1 1 1 107 TABLE 1 City of Brooklyn Center GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fisca! Years Fiscal General Public Public Community Parks and Economic Non- Admin. Services Total Year Govemment Safety Works Services Recreation Development Departmental Reimbursement Expenditures 1990 $1,823,298 $3,474,108 $1,929,950 $114,633 $1,842,294 $169,942 $396,550 ($472,004) $9,278,771 1991 1,869,394 3,950,862 1,964,441 104,706 1,881,910 177,179 414,149 (427,200) 9,935,441 1992 2,086,494 3,938,920 1,908,437 114,579 1,783,811 187,606 273,273 (602,846) 9,690,274 1993 1,787,179 3,870,563 1,996,256 41,325 1,999,270 178,703 300,803 (466,574) 9,707,525 1994 1,925,003 4,409,490 1,526,514 41,495 2,055,479 199,982 312,779 (528,684) 9,942,058 1995 2,069,978 4,598,618 1,653,358 41,146 2,226,121 209,576 289,747 (529,047) 10,559,497 1996 1,968,780 5,022,324 1,649,526 78,442 2,282,054 201,600 317,148 (611,534) 10,908,340 1997 1,992,251 5,089,072 1,868,130 79,800 2,186,686 248,779 311,436 (661,058) 11,115,096 1998 2,133,829 5,137,108 1,955,108 73,066 2,075,180 313,792 312,625 (731,737) 11,268,971 1999 $2,257,957 $5,336,622 $1,904,205 $83,295 $2,132,511 $383,927 $343,925 ($670,390) $11,772,052 Note: Table includes General Fund only. Source: City Finance Department Records I TABLE 2 City of Brooklyn Center GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE Last Ten Fiscal Years General Other Fiscal Property Licenses Intergovern- Charges for Court Financing Total Year Taxes Permits mental Services Fines Misc. Sources Revenue 1990 $3,854,798 $297,495 $3,201,888 $763,791 $215,804 $443,623 $174,925 $8,952,324 I 1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990 1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351 0 1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602 1994 5,703,773 317,620 3,443,247 825,959 113,573 241,570 100,000 10,745,742 1995 5,946,363 318,202 3,543,009 822,530 178,263 271,509 100,000 11,179,876 1996 6,120,877 402,000 3,618,075 839,583 186,761 328,750 100,000 11,596,046 1997 6,327,890 485,232 3,811,900 757,640 183,270 458,831 $100,000 12,124,763 1998 7,949,744 549,067 3,875,392 771,614 193,688 425,319 13,764,824 1999 $8,219,491 $763,960 $3,911,480 $739,054 $205,460 $194,353 $14,033,798 n ral Fund Note: Table includes Ge e onl Y Source: City Finance Department Records TABLE 3 City of Brooklyn Center TAX LEVIES AND TAX COLLECTIONS Last Ten Fiscal Years Collections Percentage Collections of Current of Levy of Prior Total Delinquent Year's Taxes Coilected Year's Taxes Collections Delinquent Taxes as Year During Fiscal During Fiscal During Fiscal Total as a% of Taxes a% of Collected Tax Levy Period Period Period Collections Tax Levy Receivable Tax Levy 1990 $4,092,978 $3,857,576 94.25% $12,241 $3,869,817 94.55% $221,097 5.40% 1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35% 1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92% 1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45% 1994 5,857,342 5,634,255 96.19% (176,148) 5,458,107 93.18% 246,311 4.21% 1995 6,501,197 6,367,437 97.94% (75,645) 6,291,792 96.78% 288,717 4.44% 1996 6,495,206 6,358,392 97.89% (11,917) 6,346,475 97.71% 208,862 3.22% 1997 6,746,487 6,626,336 98.22% (57,329) 6,569,007 97.37% 186,089 2.76% 1998 7,687,124 7,643,080 99.43% (51,327) 7,591,752 98.76% 146,907 1.91% 1999 $7,896,858 $7,824,214 99.08% $30,110 $7,854,324 99.46% $165,926 2.10% Total tax levy is net of Homestead and Agricultural Credit Aid. Source: City Finance Department Records TABLE 4 City of Brooklyn Center ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY Last Ten Fiscal Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Population (1) 28,810 28,887 28,558 28,533 28,484 28,463 28,502 28,515 28,535 28,535 Real Property Assessed va�ue: Tax (2) Tax Tax Tax Tax Tax Tax Tax Tax Tax City: Capacity Capacity Capaciry Capaciry Capacity Capacity Capacity Capacity Capacity Capacity Residential $10,133,274 $9,730,898 $9,193,012 $9,077,238 $9,110,096 $9,045,048 $9,485,333 $9,182,859 $9,309,893 $9,976,862 Non-residentiai 16,185, 832 16, 305,868 16,013,701 14,654,123 13,665,143 13,567, 573 12,837,157 11, 082,436 10,657, 588 11,002,424 Area-wide allocation (1,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) (586,003) 226,287 537,406 1,504,330 24,953,871 24,651,830 23,656,616 22,197,594 21,820,623 21,925,326 21,736,487 20,491,582 20,504,887 22,483,616 j Less Tax Increment Distdct 1,540,518 1,315,724 1,374,157 1,184,328 1,165,933 1,230,055 1,495,154 1,665,054 2,054,659 2,533,878 I Total assessed value 23,413,353 23,336,106 22,282,459 21,013,266 20,654,690 20,695,271 20,241,333 18,826,528 18,450,228 19,949,738 I i EstimatedMarketValue 1,000,269,000 1,016,754,000 1,000,829,400 978,404,100 959,668,700 961,811,400 976,115,400 1,010,170,000 1,085,605,600 1,164,801,300 �I Personal Property Assessed value 530,526 539,121 543,237 549,751 622,500 622,500 573,984 502,668 452,849 437,707 Estimatedmarketvalue 10,610,520 10,564,700 11,349,900 11,951,100 13,532,600 13,532,600 12,477,900 12,566,700 13,006,300 13,053,100 Totat Taxable Property Assessed value (2) $23,943,879 $23,875,227 $22,825,696 $21,563,017 $21,277,190 $21,317,771 $20,815,317 $19,329,196 $18,903,047 $20,387,445 Estimatedmarketvalue $1,010,879,520 $1,027,318,700 $1,012,179,300 $990,355,200 $973,201,300 $975,344,000 $988,593,300 $1,022,736,700 $1,098,611,900 $1,177,854,400 Assessed Value as a percent of Estimated Market Value 2.37% 2.32°/a 226% 2.18°/a 2.19% 2.19% 2.11 1.89% 1.72°!0 1.73% Per Capita Valuations Assessed Value $831 $827 $799 $756 $747 $749 $730 $678 $662 $714 Estimated Market Value $35,088 $35,563 $35,443 $34,709 $34,167 $34,267 $34,685 $35,867 $38,501 $41,278 Source: City Assessing Department Records and Hennepin County (1) The Metropolitan Council is the sources of population estimates and they have not yet released the 1999 estimate. (2) The Minnesota Legislature has repeatedly reduced property tax class rates so that assessed value has fallen even as market values increased. City of Brooklyn Center TABLE 5 DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES Last Ten Fiscal Years TAX RATES IN TAX CAPACITY RATES (1 2) Hennepin School Districts (3) County Total City, School, and County Year Vo-Tech No.286 No.279 No.281 No.11 Special No.286 No.279 No.281 No.11 Collectible City (2) School Earle Brown Osseo Robbinsdale Anoka Districts Earle Brown Osseo Robbinsdale Anoka 1990 17.479 1.103 42.099 57.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919 1991 19.208 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466 1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335 1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 i 34.529 132.469 129.328 130.143 1994 27.603 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439 1995 31.090 76.861 70.142 67.197 61.402 45.370 151.763 145.044 142.099 136.304 1996 30.344 58.682 67.155 64.762 64.387 44.170 133.196 141.669 139.276 138.901 1997 32.875 56.260 62.666 63.757 55.588 42.174 131.309 137.715 138.806 130.637 1998 35.214 51.567 56.386 65.350 51.824 45.869 132.650 137.469 146.433 132.907 1999 36.269 59.807 54.337 47.716 54.856 50.276 146.352 140.882 134.261 141.401 N Hennepin TAX LEVIES IN DOLLARS School Districts County Total City, Year Vo-Tech No.286 No.279 No.281 No.11 Special Schools, Collectibie City (2) School Earle Brown Osseo Robbinsdale Anoka Districts and County 1990 $4,092,978 $244,258 $3,718,102 $3,171,054 $4,028,724 $1,099,641 $8,052,590 $24,407,347 1991 4,670,606 234,927 4,169,240 3,266,615 4,365,729 1,207,395 8,992,605 26,907,117 1992 5,072,385 123,029 4,596,776 3,516,409 4,444,416 1,293,144 8,344,678 27,390,837 1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332 1994 5,857,342 $166,681 4,175,027 3,472,013 4,526,288 1,287,264 9,384,582 28,869,197 1995 6,501,197 5,367,479 3,288,144 4,814,025 1,269,585 8,557,035 29,797,465 1996 6,495,206 4,850,400 3,863,698 4,397,705 1,441,657 9,403,100 30,451,766 1997 6,746,487 4,472 3,708,238 3,899,126 1,361,059 8,854,518 29,041,634 1998 7,686,521 4,322,965 4,042,283 3,750,650 1,420,301 8,964,681 30,187,401 1999 $7,896,858 $4,293,610 $3,800,203 $3,150,416 $1,276,178 $9,471,114 $29,888,379 Source: City Communiry Development Department Records and Hennepin County (1) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989. (2) Tax levy includes Brooklyn Center E.D.A. and H.R.A.. (3) Beginning in 1998, a portion of the school levy shown was paid by the state as an education homestead credit. The state-paid portion totaled $1,669,976 in 1999. TABLE 6 City of Brooklyn Center SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Coilection Collections Year Assessment of of Prior Total to Current Collected Billings Amount Billings Years CoNections Levy 1990 $504,682 $476,874 94.49% $14,327 $491,201 97.33% 1991 612,744 595,362 97.16% 23,135 618,497 100.94% 1992 558,265 533,439 95.55% 13,801 547,240 98.03% w 1993 488,163 469, 814 96.24% 21,188 491, 002 100.58% 1994 466,784 444,670 95.26% 7,592 452,262 96.89% 1995 476,852 458,439 96.14% 5,497 463,936 97.29% 1996 485,019 459,316 94.70% 4,617 463,933 95.65% 1997 498,022 475,080 95.39% 2,470 477,550 95.89% 1998 541,477 524,609 96.88% 24,870 549,479 101.48% 1999 $688,691 $657,537 95.48% $34,532 $692,069 100.49% Source: City Finance Department Records 1 TABLE 7 City of Brooklyn Center RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years Less: Ratio of Amounts Net Bonded Net Tax Gross in Debt Net Debt to Tax Bonded Fiscal Estimated Capacity Bonded Service Bonded Capacity Debt Per Year Population Value Debt (1) Fund Debt Value Capita 1990 28,810 $23,943,879 $950,000 $448,846 $501,154 2.09% $17.40 1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29 1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79) 1993 28,533 21,563,017 0.00% 1994 28,484 21,277,190 0.00% 1995 28,463 21,317,771 0.00% 1996 28,502 20,815,317 0.00% 1997 28,515 19,329,196 7,900,000 82,056 7,817,944 40.45% 274.17 1998 28,535 18,903,047 7,900,000 616,778 7,283,222 38.53% 255.24 1999 28,535 $20,387,445 $7,575,000 $725,868 $6,849,132 33.59% $240.03 Source: City Finance Department Records and Hennepin County (1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds. 1 114 Table 8 City of Brooklyn Center COMPUTATION OF LEGAL DEBT MARGIN December 31, 1999 Market Value $1,177,854,400 Debt limit, 2% of market value 23,557,088 Total bonded deb 2 4 000 t 8, 85, Deductions (See Note 6): Bonds: 1. Special Assessment Bonds 5,920,000 2. State Aid Street Bonds 3,340,000 3. Tax Increment Bonds 10,420,000 4. Utility Revenue Bonds 1,230,000 Total Deductions 20,910,000 Total Debt Applicable to Debt Limit 7,575,000 Legal Debt Margin, December 31, 1999 $15,982,088 1 Source: City Finance and Community Development Records 115 TABLE 9 City of Brooklyn Center COMPUT'ATION OF DIRECT AND OVERLAPPING DEBT December 31, 1999 City's Share Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $7,575,000 $725,868 $6,849,132 100.0% $6,849,132 Overlapping Debt: School Districts: No.281 Robbinsdate 18,900,000 454,190 18,445,810 6.99% 1,289,362 No.11 Anoka 126,528,072 45,198,255 81,329,817 1.34% 1,089,820 No.279 Osseo 102,980,000 4,039,719 98,940,281 5.76% 5,698,960 No.286 EarlBrown 3,560,000 325,000 3,235,000 100.00% 3,235,000 Metropolitan Council 110,297,310 0 110,297,310 0.83% 915,468 Hennepin County 165,060,000 1,155,544 163,904,456 1.69% 2,769,985 Hennepin County Park Reserve District 18,080,000 3,659,100 14,420,900 2.24% 323,028 Total Overlappinq Debt 545,405,382 54,831,808 490,573,574 15,321,623 Total Direct and Overlapping Debt $552,980,382 $55,557,676 $497,422,706 $22,170,755 Direct Overlapping Comparative Net Debt Ratios Charqeable to Citv Total Debt Debt Debt to tax capacity value $20,387,445 108.75% 33.59% 75.15% Debt to market value $1,177,854,40Q 1.88% 0.58% 1.30% Per capita debt, population 28,535 $776.97 $240.03 $536.94 Source: City Finance Department Records, Hennepin County, and I.S.D. 11, Anoka I (1) Includes only general obligation debt which is being repaid through property taxes. TABLE 10 City of Brooklyn Center RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES Last Ten Fiscal Years Debt Service Total Total as a Percent Debt General Fund of General Year Principal Interest Service Expenditures Expenditures 1990 $530,000 $585,992 $1,115,992 $9,434,517 11.83% 1991 940,000 746,401 1,686,401 9,935,441 16.97% o 1992 1,880,000 1,195,204 3,075,204 9,690,274 31.73/0 1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84% 1994 780,000 1,080,555 1,860,555 9,942,058 18.71% 1995 825,000 1,075,976 1,900,976 10,559,497 18.00% 1996(1) 5,125,000 1,106,661 6,231,661 10,908,340 57.13% 1997 1,135,000 1,017,128 2,152,128 11,739, 733 18.33% 1998 1,285,000 1,244,923 2,529,923 12,695,972 19.93% 1999 $2,085,000 $1,323,609 $3,408,609 $13,363,091 25.51% Source: City Finance Department Records (1) Amounts for 1996 are higher because of the defeasance of the Tax Increment Bonds of 1985. 117 TABLE 11 City of Brooklyn Center SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Net Non- Net Revenue Operating Operating Gross Revenue to Debt Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Totai Service Water Utilitv Fund 1990 $696,147 $440,644 $1,136,791 $604,497 $532,294 $45,000 $5,425 $50,425 10.556 :1 1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48;695 8.147 :1 1992 896,857 316,551 1,213,408 762,405 451,003 $45,000 $1,940 $46,940 9.608 :1 1993 848,134 311,781 1,159,915 659,099 500,816 0 0 0 N/A 1994 1,053,689 284,169 1,337,858 720,973 616,885 0 0 0 N/A 1995 1,048,834 302,136 1,350,970 813,157 537,813 0 0 0 N/A 1996 1,145,040 281,364 1,426,404 759,171 667,233 0 0 0 N/A 1997 1,116,399 267,520 1,383,919 769,112 614,807 0 0 0 N/A 1 1998 1,179,383 239,788 1,419,171 819,361 599,810 0 0 0 N/A 1999 $1,376,952 $282,508 $1,659,460 $835,962 $823,498 0 0 0 N/A Storm Drainaae Fund (21 1991 $374,040 $2,628 $376,668 $164,767 $211,901 $0 $0 $0 N/A 1992 494,456 14,030 508,486 207,427 301,059 0 0 0 N/A 1993 639,837 28,138 667,975 160,044 507,931 0 0. 0 N/A 1994 685,011 39,930 724,941 211,425 513,516 0 30,208 30,208 17.00 :1 1995 788,897 72,881 861,778 184,990 676,788 0 90,625 90,625 7.47 :1 1996 822,980 47,363 870,343 204,969 665,374 110,000 86,390 196,390 3.39 :1 1997 856,920 130,651 987,571 198,662 788,909 155,000 79,754 234,754 3.36 :1 1998 940,012 916,860 1,856,872 199,694 1,657,178 165,000 72,227 237,227 6.99 :1 1999 999,867 1,257,928 $2,257,795 $'156,562 $2,101,233 $170,000 $64,193 $234,193 8.97 :1 Source: City Finance Department Records (1) Excludes depreciation and interest on bonds. (2) The Storm Drainage Fund was established in 1991. r TABLE12 City of Brooklyn Center PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years Building Permits Commercial New Residential Issued Construction Construction Property Value Year Number Estimated Cost Value Units Value Commercial Residential Non-7axable 1990 504 $8,035,605 $5,750,567 1 $65,249 $333,967,220 $676,912,300 $83,719,768 1991 466 8,800,980 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 I 1992 573 14,286,465 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 1993 520 11,437,250 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700 I I a 1994 607 13,418,453 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200 1995 603 11,948,205 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200 i 1996 607 16,647,400 12,527,095 18 1,126,000 284,786,600 703,806,700 108,473,400 1997 796 18,274,806 10,905,475 3 225,000 287,163,000 722,917,000 111,226,700 1998 1,482 23,216,525 14,261,800 4 612,900 314,457,700 770,883,400 152,964,200 1999 1,745 $44,188,569 $10,528,100 7 $679,600 $333,929,200 $832,334,600 $155,999,500 Source: City Finance Department Records and Community Development Department Records. TABLE 13 City of B�ooklyn Center PRINCIPAL TAXPAYERS December 31, 1999 Percentage 1999 of Total Market City Market Taxpayers Type of Business Valuation Value Talisman Brookdale, LLC Shopping Center $22,925,000 1.97% Lang-Nelson Senior Housing 22,550,000 1.94% Target Stores Retail 20,521,700 1.76% Prudential Insurance Co. Industrial/Office/Hotel 18,435,000 1.58% ReliaStar Ryan Construction Co. Office/Retail 14,420,000 1.24% GE Capital Industrial 8,794,600 0.76% Bradley Real Estate Inc. Retail 8,700,900 0.75% Sears Roebuck and Co. Department Store 8,000,000 0.69% Fleming Foods Supermarket 7,653,400 0.66% AMB Property, LP Industrial 5,573,000 0.48% Total Market Value $137,573,600 11.83% TOTAL CITY MARKET VALUE $1,164,801,300 t Source: City Community Development Records 120 City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued next page) Effective January 1, 2000 Policy Period Tvpe of Coveraqe and Details From To Liability Limits I. Statutorv Liabilitv to Emplovees a. Workers' Compensation 04-01-00 04-01-01 Statutory (participant in the League of Minnesota Cities Insurance 7rust Self- Insured Workers' Compensation Program) II. Liabilitv to the Public a. Comprehensive general liability includes the following additional coverages: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction, or invasion of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 04-01-00 04-01-01 $1,000,000 combined single limit t (2) Property damage 04-01-00 04-01-01 $1,000,000 combined single limit (3) Personal injury 04-01-00 04-01-01 $1,000,000 combined single limit b. Automobile liability, comprehensive 04-01-00 04-01-01 (1) Bodily injury $1,000,000 occurrence (2) Property damage $1,000,000 occurrence (3) Uninsured motorist $1,000,000 occurrence c. Liquor stores' dram shop 01-01-00 01-01-01 $1,000,000 each common cause d. Golf Course and Central Park 01-01-00 01-01-01 $1,000,000 each common liquor liability cause e. Personal accident, Volunteers 01-01-00 01-01-01 $100,000 accidental death $400/week short-term disability $1,000 medical 1 121 City of Srooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 2000 Buildings, Structures, Policy Period and Contents (Replacement Type of Coverage and Details From To Cost) III. Insurance on City Property 04-Q1-00 04-01-01 t a. Public and institutional property, all risk, blanket$36,142,440; $1,000 deductible replacement value on buildings. (1) Civic Center $9,779,760 (2) East Fire Station $1,463,325 (3) West Fire Station $3, 9 50,000 t (4) Municipal Service Garage $3,085,500 (5) Elevated Water Towers 3 locations $3,949,440 (6) Park Shelter Buildings 17 locations $1,517,760 (7) Pump Houses 10 locations $1,132,200 (8) Lift Stations 10 locations $1,266,840 (9) Meter Station $18,360 (10) Storage Building $480,420 (11) Outdoor lighting systems 7 locations $326,400 (12) Humboldt Liquor Store $455,940 (13) Leased Liquor Store $233,000 (14) Leased Liquor Store $240,720 (15) Pedestrian 8ridge 2 locations $1,229,960 (16) Picnic Shelter $136,200 (17) Earle Brown Heritage Center $11,195,220 (18) Centerbrook Golf Course Club House $380,460 (19) Centerbrook Golf Course Garage $46,920 (20) Lions Park Concession Stand $41,000 Liability Limits b. Boiler and machinery 04-01-00 04-01-01 $5,000,000 per accident c. Automotive physical damage 04-01-00 04-01-01 (1) Comprehensive ACV $1,000 deductible (2) Collision ACV $1,000 deductible N. Criminal Acts a. Faithful performance blanket position $500,000 per loss b. Money and securities (broad form) Various c. Depositor's forgery $100,000 122 1 TABLE 15 City of Brooklyn Center DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enroilments (3) Mpis-St.Paul No. 286 Fiscal Unemployment C.P.I. No.11 No.279 No.281 Earle Year Population (1) Rate (2) %(2) Anoka Osseo Robbinsdale Brown 1990 28,887 3.2% 4.1% 642 1,616 540 1,747 1991 28,810 4.6% 2.3% 807 1,680 521 1,327 1992 28,558 4.4% 1.4% 671 1,178 526 1,709 1993 28,533 4.3% 2.7% 691 1,106 540 1,685 1994 28,484 2.6% 2.7% 661 1,071 577 1,681 1995 28,463 2.9% 2.8% 664 1,113 567 1,645 1996 28,502 4.0% 3.3% 670 1,109 549 1,672 1997 28,515 3.3% 2.3% 680 1,111 586 1,701 1998 28,535 2.5% 1.9% 731 1,756 77$ 1,701 1999 28,535 2.2% 3.2% 776 1,791 800 1,708 (1) Source: Metropolitan Council. (2) Source: Minnesota Department of Economic Security, Research and Statistics Dept. Twin Cities metro area average for year. (3) School enro{4ment data was supplied by the schools. 1 1 123 1 TABLE 16 City of Brookiyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1999 Date of Incorporation February 94, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Government Council-Manager Fiscal Year Begins January 1 Area of City 8 1/2 square miles Miles of Streets: City 105.856 County 6.49 State 10.79 Miles of Storm Sewers 81.65 Number of Street Lights: Owned by N.S.P 905 Owned by City 97 City Employees as of December 31, 1999 Authorized regular full-time 164 Temporary or part-time 200 Total 364 t Fire Protection: Number of Stations 2 Number of Full-time Employees 1 Number of Volunteer Firefighters 42 Police Protection: t Number of Stations 1 Number of Full-time Employees 55 Number of Part-time Employees 8 1 124 City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued ftom December 31, 1999 prior page) Parks and Recreation: Park property totals 527 acres developed to serve a wide variety of recreational interests. Area inciude piaylots, playgrounds, playfields, traiis, nature areas and an arboretum. Playgrounds 20 Park shelters 12 Picnic shelters 7 Ice skating rinks 13 Hockey rinks 6 Softball diamonds 26 Baseball diamonds 6 Tennis courts 16 Basketba{{ voffeybail courts Municipal Water Plant: Number of connections 8,933 Average daily consumption in gallons 3,366,551 Peak daily consumption in gallons 7,965,000 Plant capacity gallons per day 17,652,000 Miles of water mains 114.9 Number of fire hydrants 963 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.91 Municipal Sewer Plant: Number of connections 8,796 Miles of sanitary sewer 105.43 Daily disposal capacity in gallons 10,938,240 Number of lift stations 10 Residential rate per quarter $47.50 Municipal Liquor Stores (Off-sale): t Number of owned stores Number of leased stores 2 1999 sales $3,560,613 Efections: Last General Election November 3, 1998 Registered voters 17,394 Votes cast 12,224 Percentage of registered voters voting 70.28% Last Municipal Election November 3, 1998 Registered voters 17,394 Votes cast 12,224 Percentage of registered voters voting 70.28% 125