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HomeMy WebLinkAboutCAFR-1995 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER MINNESOTA For The Year Ended December 31, 1995 I MICHAEL J. MCCAULEY, CITY MANAGER Prepared by THE DEPARTMENT OF FINANCE Charles R. Hansen, Director (Member of Government Finance Officers Association of the United States and Canada) Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1995 TABLE OF CONTENTS Exhibit Page Number Number Title Page I. INTRODUCTORY SECTION Table of Contents i- v City Officials 1 Organization Chart 2 City Manager's Letter 3 Finance Director's Letter 4- 12 Certificate of Achievement 13 II. FINANCIAL SECTION Independent Auditors' Report 14 A. General Purpose Financial Statements (Combined Statements Overview): 1 Combined Balance Sheet All Fund Types and Account Groups 1 16 17 Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types 2 18 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget And Actual General, Special Revenue and Annually Budgeted Capital Projects Funds 3 19 Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Types 4 20 Combined.Statement of Cash Flows Proprietary Fund Types 5 21 Notes to Financial Statements 22 49 i Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1995 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 Budget and Actual S-2 55 59 Special Revenue Funds: Combining Balance Sheet B-1 61 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual B-2 62 63 Debt Service Funds: Combining Balance Sheet C-1 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 66 Capital Projects Funds: Combining Balance Sheet D-1 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 69 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Housing and Redevelopment Authority Fund D-3 70 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Economic Development Authority Fund D-4 71 Project-Length Schedule of Construction Projects Capital Improvements Fund S-3 72 Project-Length Schedule of Construction Projects Municipal State Aid Construction Fund S-4 73 ii Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1995 TABLE OF CONTENTS Statement/ Schedule Page Number Number Project-Length Schedule of Construction Projects Special Assessment Construction Fund S-5 74 Enterprise Funds: Combining Balance Sheet E-1 76 77 Combining Statement of Revenues, Expenses and Changes in Retained Earnings E-2 78 79 Combining Statement of Cash Flows E-3 80 81 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Municipal Liquor Fund E-4 82 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Golf Course Fund E-5 83 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Earle Brown Heritage Center Fund E-6 84 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Recycling and Refuse Fund E-7 85 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Water Utility Fund E-8 86 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Sanitary Sewer Fund E 8� Comparative Statement of Revenues, Expenses and Changes in Retained Earnings Storm Drainage Fund E-10 88 Internal Service Funds: Combining Balance Sheet F-1 90 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 91 Combining Statement of Cash Flows F-3 92 iii Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1995 TABLE OF CONTENTS Statement/ Schedule Page Number Number Agency Funds: Statement of Changes in Assets and Liabilities Employee Deferred Compensation Fund G 94 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets by Source S-6 96 Schedule of General Fixed Assets By Function and Activity S-7 97 Schedule of Changes in General Fixed Assets By Function and Activity S-8 98 General Long-Term Debt Account Group: Comparative Statement of General Long-Term Debt H 100 Summary of Debt Service Requirements to Maturity I 101 III. STATISTICAL SECTION Table Page Number Number General Governmental Expenditures by Function 1 103 General Governmental Revenues and Other Financing Sources by Source 2 104 Tax Levies and Tax Collections 3 105 Assessed Value and Estimated Market Value of All Taxable Property 4 106 Direct and Overlapping Tax Rates and Tax Levies 5 107. Special Assessment Billings and Collections 6 108 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 109 Computation of Legal Debt Margin 8 110 Computation of Direct and Overlapping Debt 9 111 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures 10 112 iv Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1995 TABLE OF CONTENTS Table Page Number Number Schedule of Revenue Bond Coverage 11 113 Property Value, Construction and Bank Deposits 12 114 Principal Taxpayers 13 115 Schedule of Insurance Coverage 14 116-117 Demographic Statistics 15 118 Miscellaneous Statistical Facts 16 119-120 v Citv of Brooklvn Center CITY OFFICIALS For the Year Ended December 31. 1995 ELECTED OFFICIALS Term of Office Term Expires Mayor Myrna Kragness Four Years 12/31/98 Councilmember Kristen Mann Four Years 12/31/96 Councilmember Kathleen Carmody Four Years 12/31/98 Councilmember Debra Hilstrom Four Years 12/31/98 Councilmember Elect Charles Nichols Four Years 12/31/96 APPOINTED OFFICIALS City Manager Michael J. McCauley City Clerk Sharon Knutson City Treasurer Charles R. Hansen City Attorney Kennedy Graven City Prosecu�or Carson Clelland Department Heads: Community Development Brad Hoffman Financial Services Charles R. Hansen Fire/Emergency Preparedness Ronald Boman Police Scott Kline Public Works Diane Spector Assessing Stephen Baker Asst. City Manager/Personnel Coordinator Nancy Gohman 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 Recreation Arnold Mavis -1- City of Brooklyn Center Organization ELECTORATE Cky CouncU A Commissbns Administretb� N Purchesing i City Attomey City Manager Human Resources Electbna Ucensea Cfty Clerk r FIRE DEPARTMENT POLICE DEPARTMENT FINANCIAL SERVICES COMMUNITY PUBUC SERVICES I -Fire Preventbn 'Patro1 DEVELOPMENT -Engineering -investigation -Accounling -Street Mntce -Fire Supressbn -Audit -Assessin -Emergency Preparedness -C�ime Preve�tbn -UHI 9 -SanRe Sewer fty Bflfln9 -Ins b�a �Y -Community Programs _Risk Mana ement -Cent►al Gerage -Support Servlces 9 -EDA/HRA 8 �9 8 -D(s ch -Manegement Infortnetion Servicea -Zoning -Storm Sewer -Liquor Stores -EBHC -Weter Oept -Planning -Pat1c Mntce -Recreallon Programs -Community CeMer -Gdl Course Caty of Brooklyn Center A great place to st¢rt. A great place to stay. June 10, 1996 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, 1995. Minnesota Statutes and City Charter, Section 7.12, require that the financial statements of the City of Brooklyn Center be I 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. This report has been prepared following 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 twelve 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. Respect�ully su�mitted, i �/l,�G�i��' ���C�u/'' Michael J. N�C�ey City Manage� 1 6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 City H¢ll TDD Number (612) 569-3300 Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494 An Affirmatiue Action/Equal Opportunities Employer City of Brooklyn Center A great pl¢ce to start. A great pl¢ce to stay. June 10, 1996 Mr. Michael J. McCauley City Manager City of Brooklyn Center Dear Mr. McCauley: The comprehensive annual financial report of the City of Brooklyn Center for the fiscal year ended December 31, 1995, 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 governmen�.'s organizational chart and a list of principal officials. The fihancial 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, generally presented on a multi year basis. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Information related to this single audit, including the schedule of federal financial assistance, findings and questioned costs, and independent auditors' reports on the internal control structure and compliance with applicable laws and regulations, is issued as a separate report. 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 City Hall TDD Number (612) 569-3300 Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494 An Affirmatiue Action/Equal Opportunities Employer 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, Economic Development Authority and Housing and Redevelopment Authority are reported as capital projects 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 also operates three off-sale liquor stores, 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 �astern 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 1994 population, as estimated by the Metropolitan Council, is 28,484. 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 1994 to 11,467 housing units. This was due to the removal of some units by the City in accordance with a preplanned redevelopment effort. Major transportation routes in and through the City, including Interstate 94 and 694, and State Highways 100 and 252, have provided a continued impetus for development of a strong commercial tax base in the City. Commercial and industrial property comprises 57.4% of the City's taxable net ta� capacity. There are five major shopping centers located in the City in addition to a large number of retail establishments including K-Mart, Kohl's Department Store, Toys R Us, Jerry's New Market and Builders Square. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square-foot regional shopping center anchored by Daytons, Sears, Penny's and Mervyn's of California. Brookdale Square, a 125,000 square-foot strip center plus an 8-screen theater is occupied by Circuit City, Drug Emporium and Office Depot. The remaining three major retail shopping centers include Shingle Creek Center, a 157,000 square- foot three building center anchored by Target; Westbrook Mall, an 88,000 square-foot center anchored by Dayton's Home Store; and Brookview Plaza, a 70,000 square-foot center anchored by Best Buy. -5- In 1994, Evergreen Homes, a senior citizens development of 90 units with an estimated construction cost of $2,500,000 was completed. In addition, Brookdale Mall completed a$500,000 renovation project in 1994. Building activity in 1995 included the construction of the 60-unit Comfort Inn Hotel (28,000 square-feet) and Fuddruckers Restaurant (10,000 square-feet). In Brookdale Mall, Mervyn's of California renovated the former Carson Pirie Scott store at an estimated cost of $4,000,000. MAJOR EVENTS OF 1995 The City public works garage completed an extensive remodeling project in 1995 at a cost of $1.7 million. The garage houses the City's street, park, vehicle maintenance and public utilities operations. Funding for the project is from the Capital Improvements, Water and Sewer funds. Other projects in 1995 include a park and ride facility on the corner of I-694 and Brooklyn Boulevard completed in cooperation with Metropolitan Council Transit Operations. The City is in the process of completing several compr.ehensive street and utility improvements for the City. These improvements were funded by general obligation bonds sold during 1994 �and 1995 and include the Special Assessments Construction Fund and Storm Drainage Fund. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure 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. The internal control structure is 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, special revenue funds and certain capital projects funds are included in the annual appropriated budget. Project-length financial plans are adopted for the remaining capital projects funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by -6- 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 as part of 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. GENERAL FUND The following schedule presents a summary of general fund budgeted revenues for 1996, and actual revenues for the fiscal year ended December 31, 1995, compared to 1994. General Fund Revenues Other Financina Sources 1995 Increase 1996 1995 1994 -Decrease BUDGET ACTUAL ACTUAL From 1994 Taxes $6,355,958 $5,946,363 $5,703,773 242,590 License permits 348,850 318,202 317,620 582 Intergovernmental revenue 3,540,018 3,543,009 3,443,247 99,762 Charges for services 886,068 822,530 825,959 -3,429 Court fines 144,000 178,263 113,573 64,690 Misc. revenues 258,000 271,509 241,570 29,939 Other financing sources 100,000 100,000 100,000 TOTAL $11,632,894 $11,179,876 $10,745,742 Revenues and other financin sources for the General Fund totaled 5 $11,179,876 in 1995, an increase of $434,134 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 85% of the total revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1,336,593 and local government aid of $1,799,076. The following schedule presents a summary of general fund budgeted expenditures for 1996, and actual expenditures for the fiscal year ended December 31, 1995, compared to 1994. 7 General Fund Expenditures 1995 Increase 1996 1995 1994 -Decrease __BUDGET_ ___ACTUAL ACTUAL From 1994 General Govt $1,825,246 $1,831,045 $1,692,268 138,777 Public Safety 5,049,179 4,598,618 4,409,490 189,128 Public Works 1,545,021 1,363,244 1,230,565 132,679 Community Serv 78,547 41,146 41,495 -349 Parks Recr 2,450,915 2,226,121 2,055,479 170,642 Economic Development 228,000 209,576 199,982 9,594 Non-departmental 455,986 289,747 312,7'79 -23,032 TOTAL $11,632,894 $10,559,497 $9,942,058 $617,439 1 Ex enditures for the General Fund totaled $10,559,497 in 1995, an P overall increase of 6.2% when compared to 1994. The increase is reflective of the 3.0% wage increase granted to all employees except for Police Union personnel who received 3.2o in 1995. General government expenditures increased primarily due to the costs associated with the city manager recruitment. Increased expenditures in the public safety area were due primarily to the addition of new police personnel approved in the 1995 budget. GENERAL FUND BALANCE The fund balance increased by $620,379 or 11.9% in 1995. The ending fund balance of $5,834,792 is the equivalent of six months of expenditures for the 1996 budget. Property taxes and inter- governmental revenue represent 85% of the budgeted general fund revenue for 1996. The State of Minnesota has structured city finances so most of these revenues are received in the second half of the fiscal year. Minnesota cities typically receive as little as 10% of their total revenues in the first six months of the year. In recognition of this fact, a portion of the fund balance is being designated for working capital. ENTERPRISE OPERATIONS The City's enterprise operations are comprised of seven separate and distinctive activities: Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary Sewer utility, and Storm Drainage utility. The liquor operation is composed of three retail stores. Two stores are owned and one is leased. Centerbrook Golf Course began operating in 1988 and recorded operating profits from 1990 through 1993. Profitability is -8- expected to return in 1996. Green fees have been increasing each year to keep pace with inflation. The Earle Brown Heritage Center is 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,OOo people in either banquet or theater style. The Inn on the Farm is a bed and breakfast with ten rooms available. Earle's, a unique special occasion restaurant, is also located at the Inn on the Farm. Several of the barns have been restored as unique office settings which have found a niche in the market. 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. 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 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. During the 1980s, 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. Its fee structure is based upon the amount of water discharged into the storm sewer system. INTERNAL SERVICE FUNDS The Central Garage Fund was established to own and maintain all operating equipment of the City. At present, the fund maintains some 160 pieces of rolling and non-rolling stock equipment with a net book value of $1,984,748. 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 City employees who retire before age 65. In 1995, the liability estimate was refined to reflect changes to the status of the program. As a result, the liability _9_ increased $781,205 leaving a fund balance of $91,578 at December 31, 1995. AGENCY FUND The Deferred Compensation Agency Fund accounts for the I.C.M.A. Retirement Corporation plan with a market share value totaling $3,174,761 for City employee plan members at year end. DEBT ADMINISTRATION At December 31, 1995, the City had nine debt issues outstanding. These issues include $2,455,000 of general obligation state aid street bonds, $1,705,000 of special assessment debt with government commitment, $1,830,000 of general obliqation revenue bonds and $18,055,000 of general obligation tax increment bonds. The City maintained its A-1 rating from Moody's Investors Service. The City issued $780,000 of special assessment bonds in 1995 to provide construction proceeds for various improvement projects in the City. The City also issued $4,560,000 in general obligation tax increment bonds to finance various redevelopment projects within 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 475. The yield on investments ranged from a high of 8.2 percent to a low of 4.3 percent. Interest earned during 1995 amounted to $2,071,364 compared to $1,857,203 during 1994. The City adopted a written investment policy in 1990. 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 investments are listed in the lowest credit risk category, Category 1. Cash balances for all funds of the City are maintained on a combined basis and invested, to the extent possible, in short-term securities. Earnings from securities are allocated to the various funds in proportion to their relative cash book balances. 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. The City has not purchased any collateralized mortgage obligations, derivatives, or interest only strip investments. Our practice is to hold invesents to maturity. The only reason to sell prior to 10 maturity is an unforeseen cash flow need. In the past three years, there has been only one occasion where an investment was sold prior to maturity. Of the City's portfolio as of December 31, 1995, 33% matures within 1 year, another 21% in the second year, 26% in the third year, 7% in the fourth year, and the last 13% in the fifth through the eighth years. RISK MANAGEMENT The City insures all significant risk. A schedule of such insurance is included in the Statistical Section. INDEPENDENT AUDIT The City Charter and State Statutes require the Council to provide for an audit of the financial transactions of the City. Deloitte Touche LLP has been retained for that purpose and their unqualified opinion has been included in this report. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31, 1994. In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, 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. 11 ACKNOWLEDGEMENTS We want to express our appreciation to the Finance Department staff for the assistance provided during the audit. We also wish to express our appreciation to the City Manager and 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, R,�� Charles R. Hansen Directc�r of Finance Timothy R. Johnson Assistant Director of Finance 1 1� 1 1 i 1 1 r 12 Certi lcate o Achlevement or Exce��ence ln Flnancla� Ae�ortin g nt t Prese ed o Cit of Brook�yn Center, y t Mlnnesota For its Comprehensive Annual 1 Financial Aeport f or the Fiscal Year Ended December 31, 1994 A Certificate of Achievement for Excellence 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. �NCE OF,c�"j C P~p 9 f UNITED STATES t y r w+ AND :N; President d i CORPORATION �a s s�']E.A.�t. o �y 3 1 CNICAG�� Executive Director r i De oitte Touche «P 400 One Financial Plaza Telephone: (612) 397-4000 120 South Sixth Street Facsimile: (612) 397-4450 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 (the City) as of December 31, 1995 and for the year then ended, listed in Section IIA of the foregoing Table of Contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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, 1995 and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying combining and individual fund and account group financial statements and schedules listed in the foregoing Table of Contents, which are also the responsibility of the City's management, are presented for purposes of additional analysis and are not a required paR of the general purpose financial statements of the City. Such financial statements and schedules have been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, are 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 a report dated April 15, 1996 on our consideration of the City of Brooklyn Center's internal control structure and a report dated April 15, 1996 on its compliance with laws and regulations. GG� April 15, 1996 DeloitteTouche Tohmatsu International i 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 that data needed to control and analyze current operations to determine compliance with legal and budgetary limitations and to assist in the financial planning process. 15 City of Brooklyn Center EXHIBIT All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December 31, '1995 Fiduciary Totals Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only) General Generel Special Debt Capital Intemal Fixed Long-Term December 3�, General Revenue Service Projects Enterprise Service Agency Assets Debt 1995 1994 ASSETS AND OTHER DEBITS Cash and cash equivalents (Note 2) $615,176 $5,411 5450,390 $1,116,024 $1,037,573 5433,818 53,658,392 $2,336,919 Investments (Note 2) 5,660,356 50,571 1,579,090 10,430,686 8,333,420 4,054,588 30,108,711 24,780,499 Receivables: Accounts 41,955 364 30,984 1,166,134 13,569 1,253,006 1,365,679 Delinquent taxes (Note 1L) 282,251 936 12,158 295,345 247,644 Special assessmenis: O� Deferred 12,691 465,750 905,638 131,422 1,5�5,501 1,546,406 i Delinquent 654 7,757 57,978 3,148 69,537 58,838 Due trom other funds (Note 8) 862,831 240,707 1,887,677 2,991,215 3,224,156 Due from other govemments 18,399 236,106 1,465,341 611,594 2,331,440 2,996,512 Inventories and supplies (Note 1H) 356,589 10,045 366,634 346,449 Prepaid expenses 143,211 143,211 143,157 Advances to other funds (Note 8) 105,074 1,890,741 1,995,815 2,007,127 Restricted investments (Note 11) 4,180,920 1,000,000 5,180,920 5,182,719 Restricted receivables 473,344 Investments for deterred compensation plan at market (Note 12) 53,174,761 3,174,761 2,635,726 PropeRy, plant and equipment (Note 3) 39,081,292 4,190,101 514,085,155 57,356,548 53,093,491 less accumulated depreciation (8,861,698) (2,205,353 ���,os�,os�� ��o,�as,sao) Amount available m Debt Service Funds 56,451,107 6,451,�07 5,688,104 Amount to be provided for General �ong- Term Debt 15,763,893 t5,763,893 12,011,896 Total Assets and Other Debits 57,586,042 $305,797 56,925,550 518,797,227 �42,002,685 56,496,768 53,174,761 514,085,155 522,215,000 $121,588,985 5107,952,286 (See notes to financial statements) i i i City o( Brooklyn Center Exhibi[ 1 All Fund Types and Account Groups COMBWED BALANCE SHEET (ConGnued from prior page) December 31, 1995 Fiduciary ToWls Governmental Fund Types Proprietary Fund Types Fund Types Account Groups Memorandum Only General General Special Debt Capital Internal Fixed Long-Term December37, LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Projeds Enterprise Service Agency Assets Debt 1995 1994 i Liabilities Accounts payable $245,582 51,373 58,866 5277,528 5103,362 5636,711 5757,202 Cootracts payable 3A7,132 952,564 �,Zgg,ggg �27,qgg Due to other govemments 17,785 17,785 1<2,105 Due to other funds (Note 8) 1.344.983 1,050,477 595,755 2,991,215 3,224,156 Accrued salaries and wages 134,652 4,140 37,763 3,837 180,392 150,373 Accrued vacation 8 sick pay (Note 1J) 563.171 21,970 52,459 23J25 661,325 614,893 Accmed healthlnsurance 987,081 987,081 205,8)6 Accrued �nterest payable 37,760 37,760 37,760 Advances irom other funds (Note 8) 698,143 1297,672 1,995,815 2,007,127 Oeferred revenue 790,060 13,345 5474,443 2,432,115 3,709,963 3,835,336 Liabilities payable Irom restricted assets 54J10 State aid street bonds payable (Note 5) 52,455,000 2,455,000 2 805 000 Special assessment debt with govemment commitment (Note 5) 1,705,000 1,705,000 1,010,000 I Taxincrement bonds payable(Note 5) 18,055,000 18,055,000 1C,085,000 Revenue bonds payable (Note S) 1,830,000 �,g3p,ppp �,g3p,ppp De(erred compensation lunds held tor F'' participants (Note 12) v 83,174,767 3,174,761 2,635,726 TotalLiabilities 1,751,250 2,057,844 474,443 3,864,700 5087,501 7,178,005 3,174,761 22,215,000 39,737,504 33,322,749 EawN and Other Credits CoMributed capital (No[e 6) 20,997,801 3,858,406 24,856,207 25.302,075 Investment in general tixed assets 514.085,155 14,085,155 12,985,809 Retained eammgs: Reserved Debt Service 198.3�5 198,375 90,625 Special assessments 134,570 134.570 65,476 Unreserved 15.590.498 1,520,357 17,110,855 75,837,009 Fund Balances (Deficits). Reserved: Debtservice 6.451,107 6,451,107 5.688,104 Bond proceeds 3.477,619 3,477,619 Dedicated housi�g account (Nole �1) 1,000,0� ppp ppp ppp ppp Advances to other funds 105,074 1,890,741 1,995,815 2,007,127 Unexpended appropriations 223,951 Unreserved Designated Working capilal 5,276,757 5,276,757 5,052,687 I UneMpe�ded appropnations 109,750 109,750 56,652 Undesignated 343,211 (1,752,047) 8,584,167 7155331 6.320.082 Total Equity and Other Credrts 5,834,792 (1,752,047) 6,451,107 14,932,527 36,921,184 5,378,763 14,085,155 81,851,481 74,629,537 Total LiabdiUes. Equity 8 Other Credrts 57,586,042 5305,797 56,925,550 518,797,227 542,002,685 56,496,768 53,174,767 514,085,155 522,215,000 5121,588,985 5107,952,286 (See notes to financial statements) City of Brooklyn Center EXHIBIT� All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS) For fhe Year Ended December 31, 1995 Totals Special Oebt Capital Memorandum Only Revenues General Revenue Service Projecis 1995 199q Taxes and special assessments $5,946,363 $1,766,376 $351,890 $653,623 $8,718,252 $8,053,17� Licenses and permits 318,202 318,202 317,62 intergovernmental 3,543,009 264,641 i,342,397 5.150,047 4,350,181 Charges tor services 822,530 6,264 828,794 844,37 Court fines 178,263 178,263 113,57' Investment earnings 256,304 3,114 253,540 702,273 1,215,231 1,177,27 Miscellaneous 15,205 16,820 32,025 50,730 Total Revenues 11,079,876 2,040,395 605,430 2,715,113 16,440,814 14,906,92� Exoenditures Currenr General government 1,831,045 1,831,045 1,692,26 Public safety 4,598,618 4,598,618 4,409.490 Public works 1,363,244 1,363,244 1,230,565 Community services 41,146 41,146 41,49� Parks and recreation 2,226,121 14,386 2,240,507 2,074,63 Economic development 209,576 44,025 522,931 776,532 1,001,991 Non-departmental 289,747 289,747 312,77 Capiial outlay 3,493,127 3,493,127 1,732,86� Debt service: Principal retirement 825,000 825,000 780,000 Interest and fiscal charges 78,277 1,077,985 92,563 1,248,825 1,272,97 Total Expenditures 10,559,497 136,688 1,902,985 4,108,621 16,707,791 14,549,06� Excess or Deficiency(-) of Revenues Over Expenditures 520,379 1,903,707 (1,297,555) (1,393,508) (266,977) 357,85� Other Financina Sources or Uses(-1 Proceeds from sale of bonds 468,833 4,815,920 5,284,753 828,513 Operating transfers in 100,000 t,591,725 408,736 2,100,461 2,673,99 Operating transfers out (1,549,641) (450,820) (2,000,461) (2,698,83 Totai Other Financing Sources or Uses(-) 100,OOQ (1,549,641) 2,060,558 4,773,836 5,384,753 803,67� Excess or Deficiency(-) o( Revenues and Other Sources Over Expenditures and Other Uses 620,379 354,D66 763,003 3,380,328 5,117,776 1,161,527 Fund Balances (Deficits) January 1 5.214,413 (2,106,113) 5,638,104 11,552.199 20,348,603 19,845,15� Equity Transfers Ouf (658,078) Fund Balances (Oeficits) Oecember 31 $5,$34,792 ($i,752,047) $6,451,107 $14,932,527 $25,466,379 $20,348,60� (See notes to financial statements) 18 EXHIBIT 3 City o( Brooklyn Center General, Special Revenue and Annually Budgeled Capital Projects Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For Ihe Year Ended December 31, 1995 An�ually Budgeted General Fund Special Revenue Funds Capitai Projects Funds Actual Over Actual Over Aclual Over Under( Under( Under( Budget Actual Budgel Budget Actual Budget Budget Ac�ual Budget Revenues Taxes and special assessmenls $6,398,165 $5,946,363 �($451,802)� $1,408,724 $1,766,376 $357,652 $291,527 $290,151 ($1,376) Licenses and permits 296,400 318,202 21,802 Intergovernmental 3,489,876 3,543,009 53,133 253,334 264,641 11,307 18,304 18,304 Charycs (or services 897,732 822,530 (75,202) 12,000 6,264 (5,736) Court fines 112,000 178,263 66,263 Inveslment earnings 186,000 256,304 70,3U4 1,000 3,114 2,114 62,500 142,218 79,718 Miscellaneous 14,000 15,205 1,205 23,500 12,845 (10,655) Tolal Revenues 11,394,173 11,079,876 (314,29� 1,675,058 2,040,395 365,337 395,831 463,518 67,687 Exoenditures General government 1,966,016 1,831,045 (134,971) Public safety 4,862,748 4,598,618 (264,130) Publicworks 1,560,386 1,363,244 (197,142) r-+ Commu�ityservices 41,146 41,146 Parks and recreation 2,401,651 2,226,121 (175,530) 30,000 14,386 (15,614) Economic developmenl 209,625 209,576 (49) 42,824 44,025 1,201 4,694,445 1,023,194 (3,671,251) Non-departmental 405,351 289,747 (115,604) �I interest and fiscal charges 98,000 78,277 (19,723) Tolal Expendilures 11,446,923 10,559,497 (887,426) 170,824 136,688 (34,136) 4,694,445 1,023,194 (3,671,251) Excess or Deficiency(-) of Revenues Over Expenditures (52,750) 520,379 573,129 1,504,234 1,903,707 399,473 (4,298,614) (559,676) 3,738,938 i Other Financina Sources or Uses/-1 I Sale of bonds 4,045,280 4,045,280 Operating transfers in 100,000 100,000 390,308 401,379 11,071 Operating transfers out (1,538,334) (1,549,641} (11,30� (136,974) (136,738) 236 Total Other Financing Sources or Uses(-) 100,000 100,000 0 (1,538,334) (1,549,641) (11,30� 4,298,614 4,309,927 11,307 Excess or Deficiency(-) of Revenues and Other Sources Over Expenditures and Other Uses 47,250 620,379 573,129 (34,100) 354,066 388,166 0 3,750,245 3,750,245 Fund Balances (Deficits) January 1 5,214,413 5,214,413 (2,106,113) (2,106,113) 2,216,176 2,216,176 Fund Balances (Deficits) December 31 55,261,663 a5,834,792 $573,129 ($2,140,213) ($1,752,04� 5388,166 52,21fi,176 s5,966,421 53,750,245 (See notes to ftnancial statemeMs 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, 1995 Internal Totals Enterprise Service (Memorandum Only) O�eratinq Revenues Funds Funds 1995 1994 Sales and userfees $9,715,806 $1,197,750 $10,913,556 $10,279,208 Cost of sales 2,421,192 2,421,192 2,413,423 Net Operating Revenues 7,294,614 1,197,750 8,492,364 7,865,785 Ooeratina Ex�enses Personal services 2,416,138 997,787 3,413,925 2,523,883 Supplies 285,394 204,439 489,833 462,039 Other services 2,626,706 51,702 2,678,408 2,469,419 Insurance 79,363 27,067 106,430 123,104 Utilities 344,069 344,069 343,677 Rent 86,718 86,718 69,858 Depreciation 744,394 353,413 1,097,807 1,039,710 Total Operating Expenses 6,582,782 1,634,408 8,217,190 7,031,690 Operating Income (Loss) 711,832 (436,658) 275,174 834,095 Nononeratina Revenues or Exnenses (-1 Investment earnings 609,594 246,539 856,133 679,933 Special assessments (for service hookups and delinquencies) 14,194 14,194 16,776 Other revenue 7,584 7,584 2,652 Loss on disposal of fixed assets (2,375) (2,375) (13,999) Interest and fiscal agent fees (192,851) (192,851) (123,465) Total Net Nonoperating 436,146 246,539 682,685 561,897 Income (Loss) Before Operating Transfers 1,147,978 (190,119) 957,859 1,395,992 Operating Transfers In 124,842 Operating Transfers Out (10Q,000) (100,000) (100,000) Net Income (Loss) 1,047,978 (190,119) 857,859 1,420,834 Depreciation on contributed assets that reduces contributed capital 336,822 255,949 592,771 613,790 Retained Earnings January 1 14,538,583 1,454,527 15,993,110 14,522,265 Equity Transfer from Contributed Capital 55,320 Equity Transfer In (Out) (619,099) Retained Earnings December 31 $15,923,383 51,520,357 $17,443,740 $15,993,110 (See notes to financial statements) -20- City of Brooktyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1995 Internal Totals Enterprise Service (Memorandum Only) Cash flows from o�eratino activities: Funds Funds 1995 1994 Operating income (loss) $711,832 ($436,658) $275,174 $832,136 Adjustments to reconcile operating income (loss) to net cash provided by operating actviUes: Depreciation 744,394 353,413 1,097,807 1,039,710 Changes in assets and liabilities: Receivables 537,351 (10,542) 526,809 (1,182,064) Inventories (28,014) 7,829 (20,185) (26,659) Prepaid expenses (54) (54) 10,185 Payables 791,755 87,611 879,366 49,876 Accrued expenses 9,502 2,898 12,400 16,251 Accrued interest payable 37,760 Accrued health insurance liability 781,205 781,205 (10,668) Other nonoperating income 21,778 21,778 18,929 Net cash provided by operating activities 2,788,544 785,756 3,574,300 785,456 Cash flows from nonca�ital financino activities: Proceeds from borrowings on advance from other funds 11,500 11,500 153,726 Proceeds from borrowings on due to other funds 206,550 206,550 Principal payments on advance from other funds (22,813) (22,813) (20,960) Interest paid on advance from other funds (70,273) (70,273) Interest paid on due to other funds (31,653) (31,653) (93,257) Equity transfer to Central Garage Fund (402,911) Operating transfers in 124,842 Operating transfers out (100,000) (100,000) (100,000) Net cash provided by (used for) noncapital financing activities (6,689) (6,689) (338,560) Cash flows from caoital and related financina activities: Proceeds from bond sale 1,830,000 Capitai contributions 146,963 146,963 1,060,989 Acquisition and construction of capital assets (2,998,831) (384,390) (3,383,221) (2,733,962) Interestpaid on revenue bonds (90,925) (90,925) (30,208) Net cash provided by (used for) capital and related financing activities (2,942,793) (384,390) (3,327,183) 126,819 Cash flows from investino activities: Investments purchased (6,526,420) (3,511,005) (10,037,425) (3,594,112) Investments sold or matured 6,205,733 3,019,373 9,225,106 2 Interest on investments 609,594 246,539 856,133 679,933 Net cash provided by (used for) investing activities 288,907 (245,093) 43,814 (230,855) Net increase in cash and cash equivalents 127,969 156,273 284,242 342,860 Cash and cash equivalents at beginning of year 909,604 277,545 1,187,149 844,289 Cash and cash equivalents at end of year $1,037,573 $433,818 $1,471,391 $1,187,149 NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES Gain (loss) on disposal of fixed assets ($2,375) ($2,375) ($656) Gain (loss) resulting from transfer of fixed assets to the Central Garage Fund ($10,885) Contribution of fixed assets from other funds $216,188 Fixed Assets transferred to other funds $240,349 (See notes to financial statements) 21 Citv of Brooklvn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1995 Note 1: Summarv of Sianificant Accountinct 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 Entitv The City includes all funds, organizations, institutions, agencies, departments and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. BLENDED COMPONENT UNITS: Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government. Economic Development Authority (EDA) and Housing and Redevelopment Authority (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 their sole purpose is carry out certain redevelopment projects for the City. 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. RELATED ORG.ANIZATIONS: The Brooklyn Center Fire Department Relief Association (Association): The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide -22- Note 1: Summarv of Sianificant Accountina Policies (continued) A. Reportina Entitv (continued) 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 their own set of financial 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 are included in the General Fund under public safety. JOINT 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, which the City participates in, are listed below and amounts recorded within the current year financial statements are disclosed. Local Government Information Systems Association (Logis): This consortium of approximately 20 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 1995 financial statements of the City was $238,178 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 2700 Freeway Boulevard, Suite 300, Brooklyn Center, Minnesota 55430. Logis Insurance Group: This group provides cooperative purchasing of health and life insurance benefits for approximately 45 government entities. The total amount recorded within the 1995 financial statements of the City was $414,933 for services provided. -23- Note 1: Summarv of Sianificant Accountincr Policies (continued) B. Fund Accountinq 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 seven generic fund types and three broad fund categories as follows: GOVERNMENTAL FUNDS: General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds Specia� 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 Serviee Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Projects Funds Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds. 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. -24- Note 1: Summarv of Sianificant Accountina Policies (continued) B. Fund Accountina (continued) FIDUCIARY FUNDS: Agency Funds Agency Funds are used to account for assets held by the City as an agent for others. 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. -25- Note 1: Summarv of Siqnificant Accountina Policies (continued) C. Fixed Assets and Lona-Term Liabilities (continued) 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. 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 (i.e., 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 Governmental funds and agency 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 using the accrual basis of accounting. Their revenues are recognized when they are earned, and expenses are recognized when they are incurred. Unbilled Water and Sewer fund utility service receivables are recorded at year end. The City applies all 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 financial statements: -26- Note 1: Summarv of Sianificant Accountinq Policies (continued) E. Budaets and Budcretarv Accountinq (continued) 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 would result from the proposed budgets of all taxing units to each property in November. 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. S. The Cit Council must authorize an transfer of bud eted Y Y g amounts between departments within any fund. 6. Supplemental appropriations during the year may only be made by the City Council. These amounts must be financed by funds from the contingency reserve set up in the general fund or by additional revenues. 7. All budget amounts lapse at the end of the year to the extent they have not been expended. 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 certain Capital Project Funds which have adopted project-length budgets. 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 project-length Capital Projects Funds is accomplished through the use of project controls. 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 certain project-length Capital Project Funds. 10. Budgetary control is maintained at the department level for the General Fund and at 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. 2 7 Note 1: Summarv of Sianificant Accountina Policies (continued) F. Budaet/GAAP Reconciliation The following schedule reconciles the Combined Statement of Revenues, Expenditures and Changes in Fund Balance Budget to Actual to the amount on the Combined Statement of Revenues, Expenditures and Changes in Fund Balances: Fund Balances (budget) 5,966,421 Timing difference (project-length budgets) 8,966,106 Fund Balances (GAAP) $14.932.527 The funds which adopt project-length budgets are the Capital Improvements, Municipal State Aid for Construction and the Special Assessment Construction capital projects funds. G. Investments Cash balances from all funds are combined and invested to the e�tent 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 amortized cost (which approximates market) except for Deferred Compensation Fund assets which are recorded at market. Al1 highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. H. Inventorv Inventories in the ro rietar funds are valued at cost, usin P P Y 9 the weighted average in the Municipal Liquor Fund and the first-in/first-out (FIFO) method in the other proprietary funds. The costs of qovernmental fund type supplies are recorded as expenditures when purchased. I. Restricted Assets and Retained Earninas The City Council passed a resolution establishing a$1,000,000 endowment account in the Capital Project Economic Development Authority Fund. The endowment account's interest is used by the E.D.A. to fund various housing programs. Investments in the Refunding Tax Increment Bonds of 1992 Debt Service Fund are classified as restricted because the securities have been placed in an irrevocable trust with an escrow agent. J. Accumulated Unpaid Vacation and Sick Pav The City pays employees severance pay upon termination of employme.nt based on accumulated sick leave and accrued vacation. Such pay is accrued as an expenditure/expense as it is earned. -28- Note l: Summarv of Sianificant Accountina Policies (continued) K. Fund Eauitv 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. L. Propertv 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 property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts two times a year, in July and December. 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. At December 31, 1995, the City has recorded $507, 809 in deferred revenue for the General Fund for estimated property tax abatements that are anticipated to be repaid to the County in future years. M. Reclassification Certain 1994 accounts have been reclassified to conform to the 1995 presentation. N. 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. -29- Note 2: Cash and Investments i 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 (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as 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, 1995 the carrying amount of the City's demand deposits was $282,026 and the bank balance was $616,179. Of the bank balance, $194.,924 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 b securities held Y 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. 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. 3 0 Note 2: Cash and Invest:nents (continued) B. Investments (continued) (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers 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 s investments are categorized below to give an indication of the level of custodial credit risk assumed at year-end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the City�s name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the City's name. Balances at December 31, 1995: Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Governments 316,580,SC0 316,580,900 316,768,026 Federal Agencies 15,835,CCo 15,835,00o 15,870,985 Commercial Paper 4,20o,C(;0 4,2CO 4,124,624 �36,615,�C0 50 30 536, 536,763,635 31 NOTE 2: Cash and Investments (continued) SUMMARY OF CASH AND INVESTMENTS Balances at December 31, 1995 Cash in Banks: Carrying Amount Marquette Bank Brookdale, Brooklyn Center, Minnesota $200,758 American Bank, St. Paul, Minnesota 20 Riverside Bank, Minneapolis, Minnesota g� ,248 Total Cash in Bank �282,026 Investments Investment Tvoe interest Rate Maturity U.S. Treasury notes 4.3 7.8% 1996 2000 $16,580,900 Fede�al Home Loan Bank bonds 4.6 6.9% 1996 2000 5,900,Q00 Federal Home Loan Mortgage bonds 5.2% 1998 300,000 Federal National Mortgage Association bonds 5.6 8.2% 1996 2003 9,635,000 Commercial Paper 5.5 5.8% 1996 4,200,000 Total lnvestments $36,615,900 Minnesota Municipal Money Market 1,705,361 Money Market Fund, First Trust, St. Paul, Minnesota 75,748 $38,679,035 Accrued interest on investments 356,288 Discounts on investments (121,499) Premiums on investments 52,717 Change funds 6,514 Performance Deposits (25,032) Total Cash, Cash Equivalents, Investments, and Restricted Investments $38,948,023 Other Assets Investment Pools Deferred Compensation Plan $3,174,761 From Exhibit 1, COMBINED BALANCE SHEET Cash and cash equivalents �3,658,392 Investments $30,108,711 Restricted investments 5,180,920 $38,948,023 -32- Note 3: Fixed Assets Changes in the General Fixed Assets Account Group during 1995 were as follows: Balance Balance Jan. 1, 1995 Additions Disposals Dec. 31, 1995 Land $2,369,801 $2,369,801 Buildings 8 Improvements 5,417,234 $814,058 $15,795 6,215,497 Park Improvements 3,039,104 114,806 43,279 3,110,631 Furniture Fixtures 1,114,241 415,233 222,795 1,306,679 Departmental Equipment 1,045,429 88,144 51,026 1,082,547 TOTAL GENERAL FIXED ASSETS $12,985,809 $1,432,241 $332,895 $14,085,155 The following is a summary of proprietary fund-type fixed assets at December 31, 1995: Internal Enterprise Service Funds Funds Land $2,738,600 Land Improvements 92,954 Buildings Improvements 16,520,591 Mains Lines 18,455,923 Departmental Equipment 1,273,224 $4,190,101 Total 39,081,292 4,190,101 Less accumulated depreciation (8,861,698) (2,205,353) Net $30,219,594 $1,984,748 Construction in progress is included in furniture and fixtures of the General Fixed Assets Account Group and was comprised of the following: Total Expended Project to Proiect Authorization 12/31/95 Committed Interim City Hall Remodelling $440,000 $387,670 $70,366 The overexpenditure from the interim City Hall Remodelling Project was the result of personal service costs being charged against the project where no provision was made in the project budget for such costs. The overexpenditures will be funded by available fund balance. -33- Note 4: Operatina Leases The City leases space for the operation of one of its three municipal liquor stores uncler a noncancelable five-year lease. The lease provides for minimum rent payments, plus a pro-rata share of common area expenses. Total rental expense under the lease agreement for the years ended December 31, 1995 and 1994 was $32,584 and $35,410, respectively. Future minimum rent payments are as follows: Year Endina Amount 1996 26,327 1997 27,207 1998 28,087 1999 7,040 The Earle Brown Heritage Center Fund, which operates as an enterprise fund, leases space to four tenants. Three of the leases have terms greater than one year and require annual rent increases to cover the anticipated effects of inflation. Rental revenues and expenditures under the lease agreements are as follows: 1995 1994 Rental Revenues $112,109 $116,326 Rental Expenditures $102,742 $103,248 Total minimum rentals to be received in the future under the lease terms are as follows: Year Endina Amount 1996 79,596 1997 45,620 1998 ___9,918 $135,134 34 Note 5: Lona-Term Debt The City's long-term debt includes state aid street bonds, special assessment improvement bonds, and tax increment 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. 1 The following is a summary of bond transactions of the City for the year ended December 31, 1995: State Speciai Tax Aid Street Assessment Revenue Increment Bonds Bonds Bonds Bonds Total Bonds payable January 1 $2,605,000 $1,010,000 $1,830,000 �14,085,000 $19,530,000 Bonds issued 780,000 4,560,000 5,340,000 Bonds retired 150,000 85,000 590,000 825,000 Bonds payable December 31 $2,455,000 $1,705,000 $1,830,000 $18,055,000 $24,045,000 State Aid Street Bonds Future allotments from Municipal State Aid for Streets will repay these bonds which are backed by the full faith and credit of the City. Special Assessment Bonds The special assessment bonds are payable primarily from special assessments levied for local improvements and are backed by the full faith and credit of the City. Revenue Bonds The Storm Sewer Bonds are general obliaation revenue bonds and are backed by the full faith and credit of the City. Revenues to repay the bonds are provided by the Storm Drainage Fund. Tax Increment Bonds Tax Increment Bonds will be repaid from incremental tax increases on the property within certain development districts and are backed by the full faith and credit of the City. 35 Note 5: Lona-Term Debt continued Refundina Tax Increment Bonds In a prior year, the City issued $4,270,000 in General Obligation Tax Increment Refunding Bonds, Series 1992A with a net interest rate of 5.329%. The proceeds of the 1992 bond issue will be used to advance refund $4,180,000 of the City's $5,250,000 General Obligation Tax Increment Bonds, Series 1985A, callable on February 1, 1996 and with a net interest rate of 8.054%. The proceeds of $4,242,551, together with other City funds in the amount of $250, (after payment of $45,137 in bond issue costsj were used to purchase State and Local Government Securities (SLG's). Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of remaining maturities of the refunded bonds at the call date and for the interest on the refunding bonds through the call date. The City is responsible for principal and interest payments on the refunded bonds through the call date. The principal balances of both the refunded and refunding bonds are reported in the General Long-Term Debt Account Group until the call date of the refunded bonds, at which time the refunded bonds will be considered defeased and the related liability will be removed from the General Long-Term Debt Account Group. Long-term debt maturities (including interest of $7,738,708) are as foilows: State Special Tax Aid Street Assessment Revenue Increment Bonds Bonds Bonds Bonds Total 1996 $307,872 $184,790 $198,315 $5,738,999 $6,429,976 1997 308,588 256,675 237,595 1,535,892 2,338,750 998 308,478 214,240 240,390 1,555,040 2,318,148 1999 307,560 212,470 237,557 1,827,233 2,584,820 2000 310,706 210,237 239,110 1,875,554 2,635,607 2001 on 1,872,602 1,073,738 1,194,050 11,336,017 15,476,407 $3,415,806 �2,152,150 �2,347,017 $23,868,735 $31,783,708 -36- Note 5: Long-Term Debt (continued) Long-term debt obligations outstanding at year-end are summarized as follows: Bond Payment Issue Maturity Authorized Rates Dates Date Date And Issued Retired Outstanding State Aid Street Bonds G.O. State-Aid Street Bonds 4.7-6.65 4-01 10-01 09-01-91 0401-06 $3,000.000 $545,000 $2,455,000 Total $3,000,000 $545,000 $2,455,000 Special Assessment Bonds 1987 Refunding Bonds 4.7-5.5 2-01 8-01 04-01-87 02-01-97 $1,200,000 $1,110,000 $90,000 1994 Street Improvement Bonds 4.1-5.5 2-01 8-01 OS-01-94 02-01-05 835,000 835,000 1995 Street Improvement Bonds 4.0-4.9 2-01 8-01 11-01-95 02-01-06 780,000 780,000 Total $2,815,000 $1,110,000 $1,705,000 Revenue Bonds 1994 Storm Sewer Revenue Bonds 4.2-5.4 2-01 8-01 08-01-94 02-01-05 $1,830,000 $1,830,000 Total $1,830,000 $1,830,000 Tax Increment Bonds 1985 G.O. Tax Increment Bonds 6.75-8.1 2-01 8-01 12-01-85 02-01-03 55,250,000 $775,000 $4,475,000 1991 G.O. Tax Increment Bonds 4.7-6.0 2-01 8-01 03-01-91 02-01-04 6,050,000 1,300,000 4,750,000 1992 G.O. Refunding Tax Incr Bonds 4.5-5.6 2-01 8-01 02-01-92 02-01-03 4,270,000 4,270,000 1995 Taxable G.O. Tax Increment Bonds 6.0-6.75 2-01 8-01 11-01-95 02-01-11 4,560,000 4,560,000 Total $20,130,000 $2,075,000 $18,055,000 Note 6: Contributed Capital During 1995 contributed capital changed by the foilowing amounts: Internal Enterprise Service Funds Funds Additions: Improvement construction $146,963 Deductions: Depreciation on contributed assets (336,822) ($255,949) Net Change (189,859) (255,949) Contributed Capital, January 1, 1995 21,187,660 4,114,355 Contributed Capital, December 31, 1995 $20,997,801 $3,858,406 t 3 7 Note 7: Segment Information as of and for the Year Ended December 31, 1995 was as follows: E. Brown Enterprise Funds: Municipal Goff Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Fund Fund Fund Fund Fund Fund Fund Total Operating Revenues $2,696,776 $301,588 $2,385,465 $212,179 $1,048,834 $2,282,067 $788,897 $9,715,806 Depreciation Expense 20,045 15,990 347,505 241,251 114,132 5,471 744,394 Operating Income (Loss) 143,120 33,481 (435,950) (3,038) (5,574) 381,357 598,436 711,832 Operating Transfers (Out) (100,000) (100,000) Net Income (Loss) 37,�474 (24,646) (467,951) 2,594 296,068 624,046 580,392 1,047,977 Current Capital Contributions 146,963 146,963 Property, Plant Equipment: Additions 23,105 3,314 81,123 350,265 1,280,515 1,260,509 2,998,831 Deletions 1,804 5,726 748 66,461 13,763 88,502 Net Working Capiial 181,993 3,535 (281,260) 108,306 5,152,669 3,513,865 1,125,326 9,804,434 Total Assets 663,706 1,703,655 10,203,249 108,806 14,157,494 11,158,661 4,007,114 42,002,685 Bonds and OtherLong-Term Liabilities Payable from Operating Revenues 111,344 1,161,500 1,830,000 3,102,844 Total Equity $416,249 $537,677 $9,416,907 $108,306 $14,094,097 $10,270,220 $2,077,728 $36,921,184 Note 8: Interfund Receivables and Pavables Due from other funds and due to other funds are short-term receivables/payables which have interest rates of 0% to 7%. Advances to other funds and advances from other funds are considered long-term receivables/payables. Advances have interest rates of 0% to 8.5% with maturities extending through the year 2011. Advances between funds are offset by a fund balance reserve account and are not expendable available financial resources. Due From Due to Other Funds Other Funds 1 General Fund 862,831 Special Revenue Funds: E.B. Farm Tax Increment Fin. Fund $1,109,340 Comm. Development Block Grant Fund 235,643 Debt Service Funds: Tax Increment Bonds of 1985 Fund 78,835 Tax Increment Bonds of 1991 Fund 78,920 Tax Increment Bonds of 1995 Fund 56,651 Refunding Bonds of 1987 Fund 26,301 Capital Projects Funds: Capital Improvements Fund 582,626 M.S.A. Construction Fund 372,303 Special Assessments Constr. Fund 1,050,477 Economic Development Authority Fund 932,748 Enterprise Funds: Earle Brown Heritage Center Fund 595,755 Total $2,991,215 $2,991,215 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 1,297,672 M.S.A. Construction Fund 593,069 Enterprise Funds: Municipal Liquor Fund 136,172 Golf Course Fund _1,161,500 Total $1,995,815 $1,995,815 3 9 Note 9: Individual Fund Disclosures Deficit fund balances exist in the followina funds: Special Revenue Funds: Earle Brown Tax Increment Financing District: Unreserved deficit fund balance $1,807,020 This deficit is being funded through internal borrowing and will be repaid from future surplus tax increments. Capital Projects Funds: Special Assessment Construction: Unreserved deficit fund balance $536,769 This deficit is being funded through internal borrowing and will be repaid from the collection of special assessments already levied. Enterprise Funds: Golf Course: Unreserved deficit retained earnings $99,209 Earle Brown Heritage Center: Unreserved deficit retained earnings $131,109 These deficits are being funded through internal borrowing�. It is expected that future profits will cover the defici.ts. Note 10: Continaencies There are several lawsuits pending in which the City is involved. City Management estimates that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial statements of the City. Note 11: Risk Manaaement 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 deductible portions of the insurance policies. The amount of these deductibles are 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. -40- Note 12: Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to•all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. The City is reporting the activity of this plan as an agency fund and carries its investment at market value. Note 13: Post-Em�lovment Health Care Benefits The City provides post-retirement health care benefits, as per the requirements of a City Council resolution, for certain retirees and their dependents. 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. In lieu of the City payment of the single person premium, the qualified employee may elect to receive a lump sum payment calculated by multiplying the number of months between the date on which the employee retires and the employees 65th birthday times the monthly average single person premium. To qualify under this program, 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 41 Note 13: Post-Emplovment Health Care Benefits (continued) consecutive years prior to the effective date of retirement. Employees participate in this program on a voluntary basis. As of December 31, 1995, nine employees currently participate in this program. The cost of City paid health care premiums for the years ended December 31, 1995 and 1994 was $18,317 and $43,477, respectively. In addition, the expenditures in 1995 were increased by $781,205 to reflect a refinement in the estimate of the liability for the cost of employees who will be eligible for this program. The program was originally enacted in 1986 as an experimental program with a five year sunset provision. The original method of estimating the liability reflected this temporary five year program life span. Repeated extensions of the program have been approved to the point where it can no longer be viewed as temporary or experimental. The 1995 refinement of the liability estimate reflects the current status of the program. NOTE 14: Pension Plans: Public Emplovees Retirement Association (PERA) City employees participate in the pension plans administered by the Public Employees Retirement Association (PERA). In accordance with Government Accounting Standards Board Statement No 5, the PERA plans are classif ied as a def ined benefit multiple employer cost sharing plans. Disclosures relating to this plan are as follows: A. Plan Description Al1 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. A11 police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1995 was $4,350,869 and $2,024,724 respectively; the City's total payroll was $7,583,974. -42- NOTE 14: Pension Plans (continued) A. Plan Describtion (continued) 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 average salary for any f ive successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for 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 member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a Coordinated member, the annuity accrual rate is 1 percent of average salary for each of the first l0 years and 1.5 percent for each remaining year. Using Method 2, the annuity accrual rate is 2.5 percent of average salary for Basic members and 1.5 percent for Coordinated members. For PEPFF members, the annuity accrual rate is 2.65 percent for each year of service. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of servi.ee 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 be�ore retirement benefits begin. 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 benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. B. Contributions Reauired and Contributions Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, -43- NOTE 14: Pension Plans (continued) B: Contributions Reauired and Contributions Made (continuedl Subd. 4(g) the date of full funding required for the PERF and the PEPFF is July 1, 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a"required" contribution rate. The required contribution rate consists of (a) normal costs based on entry age normal cost methods, (b) a supplemental contribution for amortizing any unfunded actuarial accrued liability by the date required for full funding, and (c) an allowance for administrative expenses. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutorv Rates Reauired Emplovee Emblo er Rates* Public Employees Retirement Fund: Basic Plan and Coordinated Plan 4.31% 4.60% 9.760 Police Fire Fund 7.60% 11.40% 19.00% The recommended rates scheduled above represent the required rates for fiscal year 1995 contributions as reported in the July l, 1994, actuarial valuation reports. Total contributions made by the City during fiscal year 1995 were: Percentaae of Contribution Covered Pavroll Emplovees Emplover Emplovees Emplover Public Employees Retirement Fund: Basic Plan 7,443 9,705 8.23% 10.73% Coordinated Plan 184,043 194,920 4.23% 4.48% Police Fire Fund 153,879 230,818 7.60% 11.40% TOTALS $345,365 $435,443 The City s contribution for the year ended June 30., 1995, to the PERF represented approximately .17% of total contributions required of all participating entities. For PEPFF, contributions for the year ended June 30, 1995, represented .69% of total contributions required of all participating entities. 44 NOTE 14: Pension Plans (continued) C. Fundina Status and Proaress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and participating employers. The measure is independent of the actuarial funding method used to determine required contributions, which is discussed in Note B. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1995 are shown below (in millions): PERF PEPFF Total pension benefit obligation $5,994 $1,113 Net assets available for benefits, at cost (market �value for PERF $5,267; PEPFF $1,445) $5,074 $1,356 Unfunded (assets in excess of) pension benefit obligation $_-920 $_(243) The pension benefit obligation was determined as part of an actuarial valuation at July 1, 1995. For the PERF, significant actuarial assumptions used in the calculation of the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement; (b) projected salary increases taken from an age table which incorporates a 5 percent base inflation assumption; (cj payroll growth at 6 percent per year, consisting of 5 percent inflation and one percent due to growth in group size; (d) post-retirement benefit increases that are accounted for by the 5 percent rate of return assumption following retirement; and (e) mortality rates based on the 1983 Group Annuity Mortality Table set forward one year for retired members and set back five years for each active member. -45- NOTE 14: Pension Plans (continuedj C. Fundina Status and Proqress (continued)� Actuarial assumptions used in the calculation of the PEPFF include (a) a rate of return on the investment of present and future assets of 8.5 percent per year, compounded annually, prior to retirement, and 5 percent per year, compounded annually, following retirement, (b) projected salary increases of 6.5 percent per year, compounded annually, attributable to the effects of inflation; (c) post-retirement increases that are accounted for by the 5 percent rate of return assumption following retirement; and (d) mortality rates based on the 1971 Group Annuity Mortality Table projected to 1984 for males and females. 2. Changes in Plan Provisions Since the July l, 1994 actuarial valuation, there were no changes in actuarial assumptions for the PERF and the PEPFF which impacted funding costs. Potential changes in the actuarial assumptions used for the PEPFF inay be made in the future. Results of an experience study for the fund during the four-year period ending June 30, 1994, disclosed (a) retirees are living longer; (b) the expected active member death rate is declining; (c) the trend towards earlier retirement continues; and (d) the pattern of salary increases varies substantially by ages, with a strong merit and seniority component at the younger ages. Based on these results, PERA will soon consider revising the actuarial assumptions for retirement age, mortality, payroll growth, and individual salary increases. These changes, if adopted within fiscal year 1996, will significantly impact the July 1, 1996 actuarial valuation of the PEPFF. 3. Changes in Actuarial Assumptions The 1995 legislative session did not include any benefit improvements which would impact funding costs for the PERF and the PEPFF. D. Ten-Year Historical Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1995. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Partv Investments As of June 30, 1995 and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. -46- Note 15: Pension Plan Brooklvn Center Fire Debartment Relief Association A. Plan Description The City contributes to the Brooklyn Center Fire Department Relief Association (Association). In accordance with Government Accounting Standards Board Statement No. 5, it is classified as a defined benefit single employer public employee retirement system. Volunteer fire fighters of the City are members of the Association and its pension plan. An actuarial study was completed during 1993 which developed a schedule of benefit increases which will take effect on January 1 of each year. The plan's baseline benefit after 20 years of service and attaining the age 50 increases to $490 per month in 1994, $510 per month in 1995, and $530 per month in 1996. There are additional benefits for service through 30 years. Vesting begins with 10 years of service and benefits are pro-rated for members who have between 10 and 20 years of service. Members may choose to take a lump sum settlement instead of the pension, equal to $3,500 in 2994, $3,750 in 1995, and $4,000 in 1996, times the number of years of service, with a maximum of 30 years. Spouse's, children's and funeral benefits are also provided. These benefit provisions and all other requirements are consistent with enabling state statutes. The City levies property taxes at the direction of and for the benefit of the association plan and passes through state aids allocated to the plan, all in accordance with enabling state statutes. B. Fundina Status and Proaress The amount shown below as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected benefit increases, estimated to be payable in the future as a result of service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the funding status of the association plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among plans. It is independent of the actuarial funding method used to determine contributions to the plan, discussed in "C" below. The pension benefit obligation was determined as part of an actuarial valuation at January 1, 1993 and updated as of January 1, 1996. Significant actuarial assumptions used include (a) a rate of return on the investment of present and future assets of 5 percent per year compounded annually, and (b) no post retirement benefit increases. -47- Note 15: Pension Plan (continued) B. Fundina Status and Proaress (continuedl An actuarial update to the pension obligation is performed annually. On December 31, 1995, the overfunded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,341,406 Current Employees Employer-financed vested 1,181,872 Employer-financed non-vested 191.932 Total pension benefit obligation 2,715,210 Net assets available for benefits (at cost, market eguals $2,741,480) 2.734,697 Overfunded pension benefit obligation (19,487) The pension benefit obligation decreased by $77,805 because the payment of lump sum distributians offset the additional year of service credited to plan members. C. Contributions Reauired and Cor�tributions Made Financial requirements of the association plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. Contributions at the level specified by the last full actuarial study will continue to be made until a new study revises the contribution level. The minimum tax levy obligation is the financial requirement for the year less anticipated state aids. The funding strategy for normal cost should provide sufficient resources to pay plan benefits on a timely basis. Total contributions to the plan in 1995 amounted to $111,391, of which $42,092 was levied by the City of Brooklyn Center and $69,299 was from the State of Minnesota. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of January 1, 1993. The contributions represent funding for normal cost of $68,698 and the amortization of the overfunded actuarial accrued liability of $26,241. -48- Note 15: Pension Plan (continued) C. Contributions Rec�uired and Contributions Made lcontinued) Significant actuarial assumptions used to compute pension contribution requirements are substantially the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contribution requirements for 1994 was based on the same actuarial assumptions, benefit provision, actuarial funding method, and other significant factors used to determine pension contribution requirements in previous years with the exception of the change noted in Section B above. D. Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten year trend information may be found in the Association's annual financial report for the year ended December 31, 1995. Three year trend information for the Association is as follows: 1995 1994 1993 Available assets as a percentage of benefit obligation 101% 96% 98% City's contribution** as a percentage of *not *not *not covered payroll applicable applicable applicable *The Brooklyn Center Fire Department is a volunteer organization; thus, no covered payroll exists. **The City's contribution was made in accordance with actuarially determined requirements. E. Related Partv Investments As of December 31, 1995, the 7�ssociation held no securities issued by the City or other related parties. Note 16: Fund Chanaes The Street Improvement Bonds of 1995 Fund and Tax Increment Bonds of 1995 Fund were established as debt service funds in 1995. -49- City of Brooklyn Center, Minnesota 1 GENERAL FUND The City of Brooklyn Center Home Rule Charter provides in Section 7.11 that "there shall be maintained in the City Treasury a classification of Funds which 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, rents, 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 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. 5 0 City of Brookiyn Center A_,1 General Fund COMPARATIVE BALANCE SHEET December 31, 1995 1995 1994 ASSETS Cash and cash equivalents $615,176 $371,061 Investments 5,660,356 4,656,048 Accounts receivable 41,955 42,150 Delinquent taxes receivable 282,251 237,996 Due from other funds 862,831 1,044,340 Due from other governments 18,399 21,841 Advance to other funds 105,074 105,074 TOTAL ASSETS $7,586,042 $6,478,510 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $245,582 $266,152 Due to other governments 17,785 44,132 Accrued salaries payable 134,652 109,902 Accrued vacation and sick pay 563,171 526,755 Deferred revenue 790,060 317,156 Total Liabilities 1,751,250 1,264,097 Fund Balance Reserved for advances to other funds 105,074 105,074 Unreserved fund balance Designated: Working capital 5,276,757 5,052,687 Appropriated to next budget 109,750 56,652 Undesignated: 343,211 Total Fund Balance 5 834 792 5 214 413 TOTAL LIABILITIES AND FUND BALANCE $7,586,042 $6,478,510 1 51 City of Brooklyn Center A General Fund t COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1995 1995 Actua� over or Under(-) 1994 Budget Actual Sudget Actual Revenues Property taxes $6,398,165 $5,946,363 ($451,8�2) $5,703,773 Licenses and permits 296,400 318,202 21,802 317,620 Intergovernmental 3,489,876 3,543,009 53,133 3,443,247 Charges for services 897,732 822,530 (75,202) 825,959 Court fines 112,000 178,263 66,263 113,573 Investment earnings 186,000 256,304 70,304 218,671 Miscellaneous 14,000 15,205 1,205 22,899 Total Revenues 11,394,173 11,079,876 (314,297) 10,645,742 Ex�enditures General government 1,966,016 1,831,045 (134,971) 1,692,268 Public safety 4,862,748 4,598,618 (264,130) 4,409,490 t Publicworks 1,560,386 1,363,244 (197,142) 1,230,565 Community services 41,146 41,146 0 41,495 Parks and recreation 2,401,651 2,226,121 (175,530) 2,055,479 Economic development 209,625 209,576 (49) 199,982 Non-departmental 405,351 289,747 (115,604) 312,779 Total Expenditures 11,446,923 10,559,497 (887,426) 9,942,058 Excess or Deficiency of Revenues Over Expenditures (52,750) 520,379 573,129 703,684 Other Financino Sources Operating transfers in 100,000 100,000 0 100,000 Total Other Financing Sources 100,000 100,000 0 100,000 Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures 47,250 620,379 573,129 803,684 Fund Baiance January 1 5,214,413 5,214,413 0 4,610,729 Equity Transfer Out 0 0 0 (200,000) Fund Balance December 31 $5,261,663 $5,834,792 $573,129 $5,214,413 -52- S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1995 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual Ad Valorem Taxes Property taxes $5,981,165 $5,508,843 ($472,322) $5,286,495 Penaities and interest (4,698) (4,698) (5,793) Lodging tax 417,000 441,159 24,159 421,069 Special assessments 1,059 1,059 2,082 Total Ad Valorem Taxes 6,398,165 5,946,363 (451,802) 5,703,773 Licenses and Permits Liquor and beer 112,700 105,550 (7,150) 120,939 Building permits 100,000 109,007 9,007 109,057 Mechanical permits 25,000 41,149 16,149 28,855 Sewer and water permits 1,000 141 (859) 1,046 Plumbing permits 10,000 21,826 11,826 14,202 Garbage licenses 2,000 2,245 245 2,145 Taxicab licenses SQO 450 (50) Mechanicallic�nses 4,000 3,978 (22) 3,834 Service station licenses 1,700 1,365 (335) 1,805 Vehicle dealer licenses 1,000 968 (32) 600 Bowling licenses 700 908 208 1,153 Cigarette licenses 1,300 850 (450) 1,123 Sign permits 2,000 2,081 81 2,373 Rentaf dwelling permits 20,000 11,988 (8,012) 16,350 Amusement licenses 8,100 8,302 202 7,952 Dog licenses 4,800 4,713 (87) 4,765 Misce�laneous business license 1,600 2,681 1,081 1,421 Total Licenses and Permits 296,400 318,202 21,802 317,620 Interaovernmental Federal grants: Miscellaneous grants 6,000 5,716 (284) 9,549 Total Federal Grants 6,000 5,716 (284) 9,549 State grants: Local government aid 1,799,076 1,799,076 0 1,757,227 Homestead credit aid 1,300,110 1,336,593 36,483 1,286,780 Police pension aid 210,440 220,630 10,190 215,838 Fireperson pension aid 64,000 69,299 5,299 66,803 Police training 10,000 10,712 712 11,822 Street maintenance aid 90,000 90,000 0 90,000 Miscellaneous grants 10,250 10,983 733 5,228 Total State Grants 3,483,876 3,537,293 53,417 3,433,698 Total Intergovernmental Rev. $3,489,876 $3,543,009 $53,133 $3,443,247 t -53- S_1 City of Brookiyn Center {Continued from Genera� Fund prior page) SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1995 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual CharQes for Services General government charges $32,500 $22,075 ($10,425) $39,578 Public safety charges 18,100 31,806 13,706 30,476 Recreation fees 847,132 768,649 (78,483) 755,905 Total Charges for Services 897,732 822,530 (75,202) 825,959 Court Fines Fines 112,000 178,263 66,263 113,573 Total Court Fines 112,000 178,263 66,263 113,573 Miscellaneous Interest on investments 186,000 256,304 70,304 218,671 Forfeited drug money 3,597 3,597 12,481 Other 14,000 11,608 (2,392) 10,418 Total Miscellaneous 200,000 271,509 71,509 241,570 Total Revenues 11,394,173 11,079;876 (314,297) 10,645,742 Other Financino Sources Operating transfers in: Liquor Fund 100,000 100,000 0 100,000 Total Revenues and Other Sources 11,494,173 11,179,876 (314,297) 10,745,742 -54- City of Brooklyn Center S General Fund SCHEDUL� OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1995 next page) 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actuai General Government Mayor and Council: Personal services $32,540 $32,307 ($233) $31,709 Services and other charges 91,750 71,437 (20,313) 39,179 Total Mayor and Council 124,290 103,744 (20,546) 70,888 Charter Commission: Services and other charges 9,500 2,634 (6,866) 2,768 Total Charter Commission 9,500 2,634 (6,866) 2,768 Administrative Office: Personal services 374,232 375,603 1,371 289,194 Services and other charges 68,493 68,373 (120) 68,587 Capital outlay 9,200 7,910 (1,290) Charged to other funds (27,725) (27,725) 0 (22,719) Total Administrative Office 424,200 424,161 (39) 335,062 Elections and Voter Registration: Personal services 28,986 18,417 (10,569) 39,962 Supplies 900 (900) 1,668 Senrices and other charges 7,450 3,321 (4,129) 5,685 Total Elections and Voter Registration 37,336 21,738 (15,598) 47,315 Assessor's Office: Personal services 197,677 184,267 (13,410) 185,815 Supplies 3,000 1,422 (1,578) 985 Services and other charges 8,675 9,705 1,030 10,436 Capital outlay 0 1,154 Total Assessor's Office 209,352 195,394 (13,958) 198,390 Finance: Personal services 366,327 364,287 (2,040) 350,254 Supplies 2,700 2,987 287 2,088 Services and other charges 1,820 1,728 (92) 1,582 Charged to other funds (197,394) (197,394} 0 (199,048) Total Finance $173,453 $171,608 ($1,845) $154,876 55 City of Brooklyn Center S�2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL {Continued For the Year Ended December 31, 1995 next page) 1995 Actual Over or Under(-) 1994 Budget Actuai Budget Actual General Government (continued) Independent Audit. Services and other charges $18,400 $18,130 ($270) $17,850 Total Independent Audit 18,400 18,130 (270) 17,850 Legal: Services and other charges 204,700 183,725 (20,975) 174,709 Total Legal 204,700 183,725 (20,975) 174,709 Government Buildings: Personal services 130,055 127,063 (2,992) 138,189 Supplies 25,250 26,908 1,658 20,465 Services and other charges 184,034 187,548 3,514 182,076 Capital outlay 19,584 16,491 (3,093) 15,663 Total Government Buildings 358,923 358,010 (913) 356,393 Data Processing: Personal services 66,379 51,933 (14,446) 57,288 Supplies 9,746 4,057 (5,689) 7,310 Services and other charges 252,124 214,672 (37,452) 193,399 Capital outlay 91,427 95,053 3,626 86,628 Charged to other funds (13,814) (13,814) 0 (10,608) Total Data Processing 405,862 351,901 (53,961) 334,017 Total General Government 1,966,016 1,831,045 (134,971) 1,692,268 Public Safetv Police Protection: Personal services 3,221,726 3,006,488 (215,238) 2,909,028 Supplies 62,449 62,579 130 78,233 Services and other charges 640,829 645,423 4,594 560,925 Capital outlay 86,373 77,327 (9,046) 58,769 Total Police Protection 4,011,377 3,791,817 (219,560) 3,606,955 Fire Protection: Personal services 317,103 286,701 (30,402) 264,362 Supplies 41,856 41,052 (804) 29,080 Services and other charges 150,786 148,447 (2,339) 158,964 Capital outlay 15,450 17,722 2,272 39,887 Total Fire Protection $525,195 $493,922 ($31,273) $492,293 -56- Cit of Brookl n Center Y Y S_2 General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1995 next page) 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual Public Safetv (continued) Protective Inspection: Personal services $264,783 $252,158 ($12,625) $251,014 Supplies 1,950 1,093 (857) 3,382 Services and other charges 21,082 26,906 5,824 15,341 Capital out{ay 1,200 764 (436) Total Protective Inspection 289,015 280,921 (8,094) 269,737 Emergency Preparedness: Personal services 25,492 23,853 (1,639) 31,769 Supplies 1,400 1,169 (231) 765 Services and other charges 10,269 6,936 (3,333) 7,971 Total Emergency Preparedness 37,161 31,958 (5,203) 40,505 Total Pubiic Safety 4,862,748 4,598,618 (264,130) 4,409,490 Public Works Engineering Department: Personal services 537,826 357,791 (180,035) 315,313 Supplies 8,420 7,293 (1,127) 7,510 Services and other charges 24,762 28,765 4,003 22,924 CapitalOutlay 3,736 3,924 188 Charged to other funds (202,552) (190,114) 12,438 (195,949) Total Engineering Dept. 372,192 207,659 (164,533) 149,798 Street Department: Personal services 428,229 448,530 20,301 456,211 Supplies 156,000 141,885 (14,115) 142,988 Services and other charges 697,435 660,374 (37,061) 581,568 Capital outlay 6,530 4,796 (1,734) Charged to other funds (100,000) (100,000) 0 (100,000) Total Street Dept. 1,188,194 1,155,585 (32,609} 1,080,767 Total Public Works 1,560,386 1,363,244 (197,142) 1,230,565 Communitv Services Social Services Service and other charges 41,146 41,146 0 41,495 Total Social Services 41,146 41,146 0 41,495 Total Community Services $41,146 $41,146 $0 $41,495 5 7 City of Brooklyn Center S General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued For the Year Ended December 31, 1995 next page) 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual Parks and Recreation Administration: Personal services $0 $186,154 Supplies 0 8,084 Services and other charges 0 33,918 Total Administration 0 0 0 228,156 Adult Programs: Personal services 247,620 241,181 (6,439) 140,005 Supplies 39,259 41,552 2,293 40,800 Services and other charges 153,813 157,082 3,269 142,015 Total Adult Programs 440,692 439,815 (877) 322,820 Teen Programs Personal services 17,649 13,595 (4,054) 8,495 Supplies 572 1,061 489 1,301 Services and other charges 5,200 5,970 770 5,740 Total Teen Programs 23,421 20,626 (2,795) 15,536 Children's Programs: Personal services 122,823 116,982 (5,841) 73,367 Supplies 12,150 12,543 393 11,646 Services and other charges 22,867 28,003 5,136 13,885 Total Children's Programs 157,840 157,528 (312) 98,898 General Programs: Personal services 84,772 65,818 (18,954) 44,837 Supplies 790 722 (68) 308 Services and other charges 44,279 48,218 3,939 40,703 Total General Programs 129,841 114,758 (15,083) 85,848 Community Center: Personal services 521,209 498,374 (22,835) 423,919 Supplies 89,000 87,561 (1,439) 66,905 Senrices and other charges 189,500 212,596 23,096 158,783 Capital outlay 11,000 11,494 494 Total Community Center $810,709 $810,025 ($684) $649,607 i -58- City of Brooklyn Center S General Fund SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued from For the Year Ended December 31, 1995 prior page) 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual Parks and Recreation fcontinuedl Park Maintenance: Personal services $450,795 $333,792 ($117,003) $300,382 Supplies 62,700 52,732 (9,968) 58,090 Services and other charges 296,951 289,023 (7,928) 291,703 Capital outlay 28,702 7,822 (20,880) 4,439 Total Park Maintenance 839,148 683,369 (155,779) 654,614 Total Parks and Recreation 2,401,651 2,226,121 (175,530) 2,055,479 Economic Develonment Convention Bureau: Services and other charges 209,625 209,576 (49) 199,982 Total Economic Development 209,625 209,576 (49) 199,982 Nondeoartmental Expenditures not Charged to Departments: Personal services 0 1,224 Supplies 26,765 29,359 2,594 25,681 Services and other charges 375,511 260,388 (115,123) 255,064 Capital outlay 3,075 (3,075) 30,810 Total Nondepartmental 405,351 289,747 (115,604) 312,779 Total Expenditures $11,446,923 $10,559,497 ($887,426) $9,942,058 t -59- City of Brooklyn Center, Minnesota SPECIAL REVENUE FUNDS The Special Revenue Funds are established to account for revenues derived from taxes and/or other specific revenue sources. These resources are usually restricted by 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. Earle Brown Farm Tax Increment Financina District: 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. Diseased Tree Removal Fund: This Fund was established to account for the collection of resources and expenditure of these resources for diseased tree control. Costs are reimbursed by private property owners, or the General Fund, depending upon where the tree was located. Communitv Development Block Grant Fund: 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. 6 0 City of Brooklyn Center B Special Revenue Funds COMBINING BALANCE SHEET December 31, 1995 Earle Brown Tax Incr. Diseased Community Financing Tree Development Totals District Removal Block Grant 1995 1 gg4 ASSETS Cash and cash equivalents $5,411 $5,411 $3,844 Investments 50,571 50,571 49,345 Accounts receivable 364 364 280,572 Deferred special assessments 12,691 12,691 21,01Q Delinquent special assessments 654 654 1,145 Due from other governments $463 $235,643 236,106 65,816 TOTAL ASSETS $463 $69,691 $235,643 $305,797 $421,732 I I LIABILITIES AND FUND BALANCES (DEFICITSI rn Liabilities Accounts payable $1,373 $1,373 $19,414 Due to other governments g7,g73 Due to other funds $1,109,340 $235,643 1,344,983 1,690,160 Advances from other funds 698,143 698,143 698,143 Deferred revenue 13,345 13,345 22,155 Total Liabilities 1,807,483 14,718 235,643 2,057,844 2,527,845 I Fund Balances (Deficits) Unreserved (1,807,020) 54,973 0 (1,752,047) (2,106,113) Total Fund Balances (Deficits) (1,807,020) 54,973 0 (1,752,047) (2,106,113) I TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $463 $69,691 $235,643 $305,797 $421,732 City of Brooklyn Center B_2 Special Revenue Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAI.ANCES BUDGET AND ACTUAL For the Year Ended December 31, 1995 Earle Brown Farm Tax Increment District Diseased Tree Removal Over Over Under(-) Under(-) Budget Actual Budget Budget Actual Budget Revenues Propertytaxes $1,391,724 $1,755,156 $363,432 Special assessments $17,000 $11,220 ($5,780) Total PropertyTaxes 1,391,724 1,755,156 363,432 17,000 11,220 (5,780) Intergovernmental: Federal grants Total Intergovernmental Charges for services: Fees 0 5,000 5,000 12,000 1,264 (10,736) Total Charges for Services 0 5,000 5,000 12,000 1,264 (10,736) Miscellaneous: Investment earnings 1,000 3,114 2,114 Total Miscellaneous 1,000 3,114 2,114 Total Revenues 1,391,724 1,760,156 368,432 30,000 15,598 (14,402) Exoenditures Services and other charges 42,824 44,025 1,201 30,000 14,386 (15,614) Interest 98,000 78,277 (19,723) Total Expenditures 140,824 122,302 (18,522) 30,000 14,386 (15,6'14) Excess of Revenues Over Expenditures 1,250,900 1,637,854 386,954 0 1,212 1,212 Other Financina Sources or Uses Operating trensfers out (1,285,000) (1,285,000) 0 fxcess or Deficiency of Revenues and Other Sources Over Expenditures and Other Uses (34,100) 352,854 386,954 0 1,212 1,212 Fund Balances (Deficits) January 1 (2,159,874) (2,159,874) 0 53,761 53,76'I 0 Fund Balances (Deficits) Oecember 31 ($2,193,974) ($1,807,020) $386,954 $53,761 $54,973 $1,212 -62- 1 City of Brooklyn Center 6=2 Special Revenue Funds (Continued from prior page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1995 Community Development Block Grant Totals Over Over Under(-) 1995 1995 Under(-) 1994 Budget Actual Budget Budget Actual Budget Actual Revenues Propertytaxes $1,391,724 $1,755,156 $363,432 $1,514,763 Special assessments 17,000 11,220 (5,780) 14,888 TotalPropertyTaxes 1,408,724 1,766,376 357,652 1,529,651 Intergovernmental: Federal grants $253,334 $264,641 $11,307 253,334 264,641 11,307 184,836 Totallntergovernmental 253,334 264,641 11,307 253,334 264,641 11,307 184,836 Charges for services: Fees 12,000 6,264 (5,736) 18,413 Total Charges for Services 12,000 6,264 (5,736) 18,413 Miscellaneous: Investment earnings 1,000 3,114 2,114 2,233 Total Miscellaneous 1,000 3,114 2,114 2,233 Total Revenues 253,334 264,641 11,307 1,675,058 2,040,395 365,337 1,735,133 Exoenditures Services and other charges 72,824 58,411 (14,413) 91,429 Interest 98,000 78,277 (19,723) 81,656 Total Expenditures 170,824 136,688 (34,136) 173,085 Excess of Revenues Over Expenditures 253,334 264,641 11,307 1,504,234 1,903,707 399,473 1,562,048 Other Financina Sources or Uses Operatingtransfersout (253,334) (264,641) (11,307) (1,538,334) (1,549,641) (11,30� (1,559,678) Excess or Deficiency Revenues and Other Sources Over Expenditures and Other Uses 0 0 0 (34,100) 354,066 388,166 2,370 Fund Balances (Oeficits) January 1 0 0 0 (2,106,113) (2,106,113) 0 (2,108,483) Fund Balances (Deficits) December 31 $0 $0 $0 ($2,140,213) ($1,752,047) $388,166 ($2,106,113) -63- City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS I The Debt Service Funds were established to account for the payment (from taxes and other resources) of interest and principal on long- term general obligation debt. 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 principal and interest are due. The City's Debt Service funds included in this section are: State Aid Street Bonds Debt Service Fund: This Fund accounts for the accumulation of state aid allotments, for payment of principal and interest on bonds issued in 1991 to finance a comprehensive improvement and upgrading 69th Avenue North as a state aid route. Tax Increment Bonds of 1985 1991 Funds: These Funds were established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1985 and 1991 to finance the purchase and redevelopment of the historic Earle Brown Farm in.Brooklyn Center. Refundina Tax Increment Bonds of 1992 Fund: This fund was established to account for the resources that will be used to advance refund the Tax Increment Bonds of 1985. Tax Increment Bonds of 1995 Fund: This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1995 to finance various redevelopment projects within the City. Refundina Bonds of 1987 Fund: This Fund was established to account for the collecti.on of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold during 1987 to refund Improvement Bonds of 1982. Street Imnrovement Bonds of 1994 and 1995 Funds: These Funds were established to account for the collection of special assessments and property taxes for the payment of principal and interest on general obligation improvement bonds. The bonds were sold during 1994 and 1995 to finance the City's neighborhood street improvement program. -64- C-1 City of Brooklyn Center Debt Service Funds COMBINING BALANCE SHEET December 31, 1995 Refunding Tax Tax Tax Tax Street Street Increment Increment Increment Increment Refunding improvement Improvement Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals of 1985 of 1991 of 1992 of 1995 of 1987 of 1994 of 1995 1995 1994 ASSETS Cash and cash equivalents $55,335 $55,395 $39,763 $18,461 $220,692 $60,744 $450,390 $194,684 Investments 517,174 517,733 371,640 172,543 1,579,090 1,051,402 Delinquent taxes Receivabfe 936 936 Special assessments receivabie: Deferred 150,048 124,777 190,925 465,750 445,415 Delinquent 7,423 334 7,757 7,922 Due from other funds 78,835 78,920 56,651 26,301 240,707 259,299 Restricted Investments $4,180,920 4,180,920 4,182,719 rn TOTALASSETS $651,344 $652,048 $4,180,920 $468,054 $374,776 $346,739 $251,669 $6,925,550 $6,141,441 LIABILITIES AND FUND BAIANCES Liabilities Deferred revenue $157,471 $126,047 $190,925 $474,443 $453,337 Total Liabilities 157,471 126,0�7 190,925 474,443 453,337 Fund Balances Reserved for debt service $651,344 $652,048 $4,180,920 $468,054 217,305 220,692 60,744 6,451,107 5,688,104 Total Fund Balances 651,344 652,048 4,180,920 468,054 217,305 220,692 60,744 6,451,107 5,688,104 TOTAL LIABILITIES AND FUND BALANCES $651,344 $652,048 $4,180,920 $468,054 $374,776 $346,739 $251,669 $6,925,550 $6,141,441 G2 City of Brookiyn Center I Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1995 Refunding State Tax Tax Tax Tax Street Street Aid Increment Increment Increment Increment Refunding Improvement Improvement Street Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totats Bonds of 1985 of 1991 of 1992 of 1995 of 1987 of 1994 of 1995 1995 1994 I I Revenues Property taxes $70,214 �70,214 Special assessments a177,860 46,449 $57,367 281,676 $328,696 Investment earnings $9,829 �8,350 $217,823 $2,440 5,074 9,466 558 253,540 261,876 Total Revenues 9,829 8,350 217,823 2,440 182,934 126,129 57,925 605,430 590,572 Exaenditures Principal $150,000 240,000 350,000 85,000 825,000 780,000 Interest 156,325 365,370 286,138 219,622 7,131 41,390 1,075,976 1,080,555, I Fiscal agent fees 400 509 400 200 300 200 2,009 1,636 rn °i Total Expenditures 306,725 605,879 636,538 219,622 200 92,131 41,690 200 1,902,985 1,862,191 i Excess or Deficiency of Revenues Over Expenditures (306,725) (596,050) (628,188) (1,799) 2,240 90,803 84,439 57,725 (1,297,555) (1,271,619) Other Financinq Sources or Uses Proceeds from sale of bonds 465,814 3,019 468,833 3,533 Operating transfers in 306,725 640,000 645,000 1,591,725 1,559,471 Total Other Financing Sources or Uses 306,725 640,000 645,000 465,814 3,019 2,060,558 1,563,004 Excess or Deficiency of Revenues and Other Sources over Expenditures I and Other Uses 0 43,950 16,812 (1,799) 468,054 90,8Q3 84,439 60,744 763,003 291,385 Fund Balances January 1 0 607,394 635,236 4,182,719 0 126,502 136,253 0 5,688,104 5,846,719 Equity Transfer In (Out) (q50,ppp� Fund Balances December 37 $0 $651,344 $652,048 $4,180,920 $468,054 $217,305 $220,692 $60,744 56,451,107 $5,688,104 Min esota City of Brooklyn Center, n CAPITAL PROJECTS FUNDS 1 e a ds are established to account for all Th Capit 1 Pro�ects Fun 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 available 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: Housina and Redevelonment Authoritv Fund �H.R.A.): This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A. Fund and all tax proceeds are transferred to that fund. Economic Develobment Authoritv Fund: This Fund was established to account for the Economic Development Authority (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 transfers from the C.D.B.G. and H.R.A. funds. Capital Improvements 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 major 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. Municibal 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. Special 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. -67- D-1 City of Brooklyn Center Capital Projects Funds COMBINING BALANCE SHEET December 31, 1995 Municipal Economic State Aid Special Development Capital for Assessment Totals Authority Improvements Construction Construction Fund Fund Fund Fund 1995 1994 ASSETS Cash and cash equivalents $392,649 $408,948 $261,321 $53,106 $1,116,024 $580,181 Investments 3,669,811 3,822,152 2,442,382 496,341 10,430,686 7,448,015 Accounts receivable 300 30,684 30 69,192 Delinquenttaxes receivable 12,158 12,158 9,648 Special assessments: Deferred 905,638 905,638 1,018,095 Delinquent 57,978 57,978 46,181 Due from other funds 932,748 582,626 372,303 1,887,677 1,920,517 Due from other governments 1,465,341 1,465,341 1,968,764 Advance to other funds 1,297,672 593,069 1,890,741 1,902,053 Restricted investments 1,000,000 1,000,000 1,000,000 TOTAL ASSETS $6,007,666 $6,142,082 $5,134,416 $1,513,063 $18,797,227 $15,962,646 UAB1L171ES ANO FUND BAL4NCES (DEFfCITSI Liabilities Accounts payable $4,350 $2,212 $2,304 $8,866 $72,258 Contracts payable 120,258 $194,475 32,399 347,132 127,485 Dueto other funds 1,050,477 1,050,477 1,144,791 Accrued salaries and wages 2,767 165 172 1036 4,140 4,585 Accrued vacation and sick pay 21,970 21,970 18,640 Deferred revenue 12,158 1,456,341 963,616 2,432,115 3,042,688 Tota1 Liab�lities 41,245 122,635 1,650,988 2,049,832 3,864,700 4,410,447 Fund Balances (Deficits) Reserved: Bond proceeds 3,477,619 3,477,619 Dedicated housing account 1,000,000 1,000,000 1,000,000 Advances to other funds 1,297,672 593,069 1,890,741 1,902,053 Unexpended appropriations 223,951 Unreserved 1,488,802 4,721,775 2,890,359 (536,769) 8,564,167 8,426,195 Total Fund Balances (Deficits) 5,966,421 6,019,447 3,483,428 (536,769) 14,932,527 11,552,199 TOTA� LIABILITIES AND FUND BALANCES (DEFICITS) $6,007,666 $6,142,082 $5,134,416 $1,513,063 $18,797,227 $15,962,646 -68- Ciry of Brooklyn Center Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUNO BALANCES For the Year Ended December 31, 1995 Housing Municipal and Economic State Aid Special Redevelop Development Capital for Assessment Authority Authority Improvements Construction Construction Totals Fund Fund Fund Fund Fund 1995 1994 Revenues Propertytaxes $118,434 5171,717 5290.151 5238,547 Special assessments $363,472 363,472 252,510 Intergovemmental 18,304 $39,553 $1,268,540 16,000 1,342,397 722,098 Investment earnings 142,218 370,449 177,310 12,296 702,273 694,490 Miscellaneous 12,845 3,975 16,820 27,831 Total Revenues 136,738 326,780 413.977 7,445,850 391,768 2.715,113 1,935,476 Exoenditures Pe►sonai services 161,950 57,522 21,498 109,374 350,344 358,018 Supplies 643 4,385 16 2,379 7,423 3,203 Services and other charges 360,338 95,917 269,163 111,553 836,971 651,692 Capital ouUay 500,186 1,138,384 579,714 603,036 2,821,320 1,449,688 Interest 77 92,486 92,563 109,132 Totai Expenditures 1,023,194 1,296,208 870,391 918,828 4,108.621 2,571,733 Excess or Deficiency of Revenues Over Expenditures 136,738 (696,414) (882,231) 575,459 (527,060) (1,393,508) (636,25n Other Finaneina Sourees or Uses!-1 Proceeeds from sale of bonds 4,045,280 770,640 4,815,920 824,980 Operating transfers in 401,379 7,357 408,736 1,014,519 Operating transfers out (136,738) (314,082) (450,820) (1,139,154) Total Other Financing Sources or Uses(-) (136,738) 4,446,659 (314,082) 777,997 4,773,836 700,345 Excess or Deficiency of Revenues a�d Other Financing Sources Over Expenditures and OtherFinancingUses 0 3,750,245 (882,231) 261,377 250,937 3,380,328 64,088 Fund Balance (Deficits) January 1 2,216,176 6,901,678 3,222,051 (787,706) 11,552,199 11,496,189 Equity Trensfers In (Out) (g,p7gj Fund Balance (Deficits) December 31 $0 $5,966,421 $6,019,447 $3,483,428 (5536,769) $14,932,527 �11,552,199 -69- City of Brooklyn Center D Housing and Redevelopment Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES lN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1995 1995 Acival Over or Under(-) 1994 Budget Actual Budget Actual Revenues Property taxes $118,670 $118,434 ($236) $115,104 Intergovemmental 18,304 18,304 0 17,835 Totai Revenues 136,974 136,738 (236) 132,939 Other Financinq Uses Operating transfers out 136,974 136,738 (236) 132,939 Excess or Deficiency of Revenues over Other Financing Uses 0 0 0 0 Fund Balance January 1 0 0 0 0 Fund Balance December 31 $0 $0 $0 $0 -70- City of Brooklyn Center D_4 Economic Devefopment Authority Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Year Ended December 31, 1995 1995 Actual Over or Under(-) 1994 Budget Actual Budget Actual Revenues Property taxes $172,857 $171,717 ($1,140) $123,443 Intergovemmental 305,306 Investment Earnings 62,500 142,218 79,718 96,226 Misceilaneous 23,500 12,845 (10,655) 26,786 Total Revenues 258,857 326,780 67,923 551,76i Exqenditures Personal Services 160,596 161,950 1,354 151,491 Supplies 2,300 643 (1,657) 932 Services and other charges 400,222 360,338 (39,884) 362,609 CapitalOutlays 4,131,327 500,186 (3,631,141) 214,707 Interest 77 77 16 Total Expenditures 4,694,445 1,023,194 (3,671,251) 729,755 Excess or Deficiency of 1 Revenues over Expenditures (4,435,588) (696,414) 3,739,174 (177,994) Other Financinp Sources Sale of Bonds 4,045,280 4,045,280 0 Operating transfers in 390,308 401,379 11,071 787,775 Total Other Financing Sources 4,435,588 4,446,659 11,071 787,775 Excess or Deficiency of Revenues and Other Financing Sources Over Expenditures 0 3,750,245 3,750,245 609,781 Fund Balance January 1 2,216,176 2,216,176 0 1,614,473 Equity Transfer Out (8,078) Fund Balance December 31 $2,216,176 $5,966,421 $3,750,245 $2,216,176 71 S-3 City of Brooklyn Center Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From BeQinnina to December 31. 1995 Project Over(-) Under 1995 to Date Expended Type of Project Appropriations Expenditures Expenditures Appropriations Fire training facility $95,000 $20,000 $70,000 $25,000 Central garage improvements 1,133,624 723,813 1,222,624 (89,000) Interim city hall remodelling 440,000 363,216 387,670 52,330 Park playground equipment 157,711 109,323 193,474 (35,763) N Misc. curbing, excavation, removals 44,348 42,396 42,396 1,952 ADA trails,curb removals, ramps 44,638 37,460 39,849 4,789 Totals $1,915,321 $1,296,208 $1,956,013 ($40,692) I r S-4 City of Brooklyn Center I, Municipal State Aid Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnina to December 31. 1995 Project Over(-) Under 1995 to Date Expended Project Appropriation Expenditures Expenditures Appropriations I i Humboldt Avenue improvements 507,486 369,532 401,451 106,035 69th Avenue soil correction 997,737 3,417 969,708 28,029 Shingle Creek Parkway overlay 430,620 102,817 413,022 17,598 Misc. sidewalk replacement 16,917 15,931 16,751 166 69th Ave., Shingle Creek Parkway to Dupont Ave. 1,712,926 54,882 56,684 1,656,242 I Brooklyn Boulevard street improvement 207,090 162,163 168,991 38,099 Woodbine Neighborhood street improvements 75,740 134,760 134,760 (59,020) James/Knox/54th Avenue improvements 26,889 26,889 (26,889) w Totals $3,948,516 $870,391 $2,188,256 $1,760,260 I S-5 City of Brooklyn Center Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnina to December 31. 1995 Project Over(-) Under 1995 to Date Expended Type of Project Appropriations Expenditures Expenditures Appropriations James, Knox 54th Ave. street improvements $232,286 ($1,399) $231,213 $1,073 57th Ave. street improvements 144,905 26,189 30,763 114,142 Humboldt Aven�e street improvements 50,703 37,628 50,703 Northwest area street improvements 596,946 (8,295) 594,101 2,845 Woodbine neighborhood street improvements 917,675 741,053 757,485 160,190 Orchard Lane East street improvements 925,700 40,587 40,587 885,113 Logan, James, Knox Avenue improvements 590,615 15,613 15,613 575,002 Totals $3,458,830 $851,376 $1,720,465 $1,738,365 City of Brooklyn Center, Minnesota t 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: Municipal 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. t 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. Earle�'s, a unique special occasion restaurant, is also located at the "Inn on the Farm". Several 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 Utilities Fund: This Fund accounts for the provision of water to customers. 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. -75- City of Brooklyn Center E_1 Enterprise Funds (Continued ne�R page) COMBINING BALANCE SHEET December 31, 1995 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Gourse Center Refuse Utility Sewer Drainage Totals ASSETS Fund Fund Fund Fund Fund Fund Fund 1995 1994 Current Assets Cash and cash equivalents $1,945 $478 $143,522 $6,668 $478,047 $356,088 $50,825 $1,037,573 $909,604 Investments 62,324 4,467,974 3,328,099 475,023 8,333,420 8,012,733 Accounts receivabie net 8,693 315,029 11,269 66,630 144,536 41,901 588,058 435,406 Accrued revenue 28,545 131,912 298,823 118,796 578,076 535,332 Special assessments receivable: Deferred 49,394 5,666 76,362 131,422 61,886 Delinquent 3,148 3,148 3,590 Due from other govemments 149,789 461,805 611,594 940,091 inventories 301,000 7,535 29,093 18,961 356,589 328,575 Prepaid expenses 6,468 17,438 119,305 143,211 143,157 i V Total Current Assets 318,106 8,013 505,082 108,806 5,216,066 4,402,306 1,224,712 11,783,091 11,370,374 rn Restricted Assets Revenue bond construction account Due from other governments 473,344 Total Restricted Assets 473,344 Fixed Assets Mains and lines 8,715,706 7,244,920 2,495,297 18,455,923 15,971,551 Structures 327,595 301,875 9,555,862 4,439,590 1,895,669 16,520,591 16,119,716 Equipment 143,013 32,636 1,040,729 26,887 23,223 6,736 1,273,224 1,256,114 Land 107,405 1,391,711 925,000 23,938 3,388 287,158 2,738,600 2,738,600 Land improvements 12,904 77,450 2,600 92,954 84,981 590,917 1,803,672 11,521,591 13,208,721 9,167,200 2,789,191 39,081,292 36,170,962 Less: Aliowance for depreciation 245,317 108,030 1,823,424 4,267,293 2,410,845 6,789 8,861,698 8,203,431 Total Net FixedAssets 345,600 1,695,642 9,698,167 8,941,428 6,756,355 2,782,402 30,219,594 27,967,531 TOTALS $663,706 $1,703,655 $10,2Q3,249 $108,806 $14,157,494 $11,158,661 $4,007,114 $42,002,685 $39,811,249 I I E-1 (Continued from E. Brown prior page) Municipai Golf Heritage Recycling Water Sanitary Storm Liquor Course Center 8 Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1995 1994 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $81,794 $2,308 $153,032 $500 $18,525 $19,435 $1,934 $277,528 $383,627 Contracts payable 26,390 866,875 59,299 952,564 Accrued salaries payabie 5,783 640 23,795 5,021 2,131 393 37,763 32,321 Accrued vacation and sick pay 23,708 1,530 13,760 13,461 52,459 48,399 Accrued interest payabte 37,760 37,760 37,760 Due to other funds 595,755 595,755 389,205 Current portion of long-term debt 24,828 24,828 22,812 Total Current Liabilities 136,113 4,478 786,342 500 63,397 888,441 99,386 1,978,657 914,124 Current Liabilities oavable from Resticted Assets v Accounts Payable 54,710 v i Lona-Term Liabilities Bonds payable 1,830,000 1,830,000 1,830,D00 Advances from other funds 111,344 1,161,500 1,272,844 1,286,172 Total Long-term Liabilities 111,344 1,161,500 1,830,000 3,102,844 3,116,172 Fund Eau� Contributions 636,886 9,548,016 4,997,510 5,668,426 146,963 20,997,801 27,187,660 Retained earnings (Deficits) Reserved: Debt Service 198,315 198,315 90,625 Special assessments 52,542 5,666 76,362 134,570 65,476 Unreserved 416,249 (99,209) (131,109) 108,306 9,044,045 4,596,128 1,656,088 15,590,498 14,382,482 Total Retained Earnings (Deficits) 416,249 (99,209) (131,109) 108,306 9,096,587 4,601,794 1,930,765 15,923,383 14,538,583 Totai Fund Equity 416,249 537,677 9,416,907 108,306 14,094,097 10,270,220 2,077,728 36,921,184 35,726,243 I TOTALS $663,706 $1,703,655 $10,203,249 $108,806 $14,157,494 $11,158,661 34,007,114 $42,002,685 $39,811,249 City of Brooklyn Center E_2 Enterprise Funds (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Ooeratina Revenues Fund Fund Fund Fund Fund Fund Fund 1995 1994 Sales and user fees $2,696,776 $301,588 $2,385,465 $212,179 $1,048,834 $2,282,067 $788,897 $9,715,806 $9,248,796 Cost of sales 2,043,179 36,102 341,911 2,421,192 2,413,423 Net Operating Revenues 653,597 265,486 2,043,554 212,179 1,048,634 2,282,067 788,897 7,294,614 6,835,373 Oaeratina Exaenses Personai services 365,502 127,233 1,258,271 376,422 186,002 102,708 2,416,138 2,246,599 i Suppiies 13,063 21,471 152,491 87,234 11,110 25 285,394 281,683 Otherservices 41,659 46,757 493,619 214,909 185,115 1,564,506 80,141 2,626,706 2,414,671 Insurance 13,941 7,988 36,255 308 12,981 5,774 2,116 79,363 97,067 i Utilities 23,683 12,566 137,229 151,405 19,186 344,069 343,677 Rent 32,584 54,134 86,718 69,858 Depreciation 20,045 15,990 347,505 241,251 114,132 5,471 744,394 721,297 Totai Operating Expenses 510,477 232,005 2,479,504 215,217 1,054,408 1,900,710 190,461 6,582,782 6,174,852 Operating Income (Loss} $143,120 $33,481 ($435,950) ($3,038) ($5,574) $381,357 $598,436 $711,832 $660,521 I I r E-2 (Continued from prior page) E. Brown I Municipal Goif Heritage Recycling Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totais Fund Fund Fund Fund Fund Fund Fund 1995 1994 Nononeratina Revenues or Expenses(-1 Investment earnings $2,069 $5,632 $290,593 $238,419 $72,881 $609,594 $518,661 Special assessments: Service hookups delinquencies 8,883 5,311 14,194 16,776 Other revenue 4,924 2,660 7,584 2,153 Gain (loss) on disposal of fixed assets ($493) ($347) (494) (1,041) (2,375) (11,541 Interest and fiscal agent fees (12,639) (57,634) (31,653) (90,925 192,851 (123,465) Nonoperating Totals (5,646) (58,127) (32,000) 5,632 30t,642 242,689 (18,044) 436,t46 402,584 i Income Before Operating Transfers 137,474 (24,646) (467,950) 2,594 296,068 624,046 580,392 1,147,978 1,063,105 Operating Transfers In 124,842 Operating Transfers Out (100,000) (�pp,ppp� ��pp,ppp� Net Income (Loss) 37,474 (24,646) (467,950) 2,594 296,068 624,046 580,392 1,047,978 1,087,947 Depreciation on contributed assets that reduces contributed capital 336,822 336,822 338,532 Retained Earnings (Deficits) Jan. 1 378,775 (74,563) 19 105,712 8,800,519 3,977,748 1,350,373 14,538,583 13,675,883 Equity Transfer from Contributed Capital 55,320 Equity Transfer In (Out) �g�g,pgg� Retained Earnings (Deficits) Dec. 31 $416,249 ($99,209) ($131,109) $108,306 $9,096,587 34,601,794 $1,930,765 315,923,383 a14,538,583 City of Brooklyn Center E_3 Enterprise Funds (Continued next page) COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1995 E. Brown Municipal Golf Heritage Recycling Water Sanitary Storm Liquor Course Center 8 Refuse Utility Sewer Drainage Totals Cash flows from ooeratina activities: Fund Fund Fund Fund Fund Fund Fund 1995 1994 Operating income(loss) $143,120 $33,481 ($435,950) ($3,038) ($5,574) $3$1,357 $598,436 $711,832 $660,521 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 20,045 15,990 347,505 241,251 114,132 5,471 744,394 72t,297 Changes in assets and liabilities: Receivables (6,581) (120,090) (5,158) 1,023 (1,765) 669,922 537,351 (1,179,037) Inventories (16,966) (973) (8,184) (1,891) (28,014) (8,785) Prepaid expenses (3,566) 11,041 (7,529) (54) 10,185 Payables (27,019) (2,998) 10,110 (65) 4,675 814,535 (7,483) 791,755 34,125 Accrued expenses (12) 1,097 7,699 (480) 1,049 149 9,502 (8,413) Accrued interest payable 37,760 Other nonoperating income 4,924 11,543 5,311 21,778 18,929 p Net cash provided by (used for) operating activities 113,945 46,597 (187,869) (8,261) 250,547 1,307,090 1,266,495 2,788,544 286,582 Cash flows from noncaoital financina activities� Proceeds from borrowings on advance 11,500 11,500 70,000 Proceeds from borrowings on due to other funds 206,550 206,550 83,726 Principal repayments on advance (22,813) (22,g�3� (2p,ggp� Interest paid on advance from other funds (12,639) (57,634) (70,273) (70,556) Interest paid on due to other funds (31,653) (31,653) (22,701) Equity transfer to Central Garage Fund (qp2,g� Operating transfers in 124,842 Operating transfers out (100,000) (100,000) (100,000) Net cash provided by (used forj noncapitai financing activities ($135,452) ($46,134) $174,897 $0 $0 $0 $0 ($6,689 ($338,560) I �I E-3 (Continued from prior page) E. Brown Municipal Golf Heritage Recyciing Water Sanitary Storm Liquor Course Center Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund Fund Fund Fund 1995 1994 I Cash flows from capital and related 'I financina activities: Proceeds from bond sale $1,830,000 Capital contributions $146,963 $146,963 Acqu'rsition and construction of capital assets ($23,105) ($3,314) ($81,123) ($350,265) ($1,280,515) (1,260,509) (2,998,831) (2,154,965) Interest paid on revenue bonds (90,925) (90,925) (30,208) Net cash provided by (used for) capital and related financing activities (23,105) (3,314) (81,123) $0 (350,265) (1,280,515) (1,204,471) (2,942,793) (355,173) Cash flows from investina activities Investments purchased (42,290) (3,383,684) (2,634,374) (466,072) (6,526,420) (1,777,024) i investments sold or matured 46,411 3,327,212 2,478,370 353,740 6,205,733 1,857,406 Interest on investments 2,069 5,632 290,593 238,419 72,881 609,594 518,661 i Net cash provided by (used for) investingactivities 2,069 0 0 9,753 234,121 82,415 (39,451) 288,907 599,043 Net increase (decrease) in cash and cash equivalents (42,543) (2,851) (94,095) 1,492 134,403 108,990 22,573 127,969 191,892 Cash and cash equivalents at beginning of the year 44,488 3,329 237,617 5,176 343,644 247,098 28,252 909,604 717,712 Cash and cash equivalents at end of the year $1,945 $478 $143,522 $6,668 $478,047 $356,088 $50,825 $1,037,573 b909,604 NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES I Gain (Loss) on disposal of fixed assets ($493) ($347) ($494) (a1,041) ($2,375) ($656) Gain (Loss) resulting from transfer of fixed assets to the Central Garage Fund ($10,885) Fixed Assets transferred to Central Garage Fund, net of depreciation a216,188 I 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, 1995 1995 1994 Sales Liquor $878,251 $867,557 Wine 267,177 265,032 Beer 1,378,541 1,397,958 Soft drinks 56,404 55,944 Other merchandise 116,403 111,882 Total Sales 2,696,776 2,698,373 Less: Cost of Sales 2,043,179 2,023,603 Net Operating Revenues 653,597 674,770 Operatinp Expenses Personaf services 365,502 369,660 Supplies 13,063 8,551 Other services 41,659 61,755 Insurance 13,941 13,318 Utilities 23,683 22,234 Rent 32,584 35,410 Depreciation 20,045 15,717 Total Operating Expenses 510,477 526,645 Operating Income 143,120 148,125 Nonoperatina Revenue or Ex�ense(-) Investment eamings 2,069 4,036 Other revenue 4,924 650 Gain on disposal of fixed assets 716 Interest and fiscal agent fees (12,639) (14,491) Total Nonoperating (5,646) (9,089) O eratin Transfers to General Fund 100 000 100 000 P 9 Net Income 37,474 39,036 Retained Earnings January 1 378,775 354,288 Equity Transfer In (Out) (14,549) Retained Earnings December 31 $416,249 $378,775 -82- E-5 City of Brooklyn Center Goif Course Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 1995 9994 Oneratina Revenues Green fees $227,233 $232,862 Rentals 8,683 8,542 Leagues 7,577 10,340 Golf lessons 11,135 10,390 Concessions 21,689 18,237 Merchandise 22,132 18,909 Pop machine 2,734 2,394 Miscellaneous 405 376 Total �perating Revenues 301,588 302,050 Less: Cost of Sales 36,102 34,550 Net Operating Revenues 265,486 267,500 Operatinp Expenses Personal services 127,233 124,681 Supplies 21,471 20,713 Other services 46,757 46,761 Insurance 7,988 7,987 Utilities 12,566 11,079 Depreciation 15,990 13,659 Total Operating F�cpenses 232,005 224,880 Operating Income 33,489 42,620 Nonoperatin4 Revenue or Expense(-) Loss on disposal of fixed assets (493) (10,952) Interest and fiscal agent fees (57,634) (56,065) Total Nonoperating (58,127) (67,017) Nef Loss (24,646) (24,397) Retained Eamings (Deficit) January 1 (74,563) 4,856 Equity Transfer from Contributed Capital 55,320 Equity Transfer In (Out) (110,342) Retained Earnings (Deficit) December 31 ($99,209) ($74,563) -83- E-6 I 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, 1995 1996 1994 Ooeratino Revenues Conventions $702,466 $592,208 Catering 1,249,546 1,240,038 Inn on the Farm 321,344 299,539 Office Rents 112,109 116,326 Total Operating Revenues 2,385,465 2,248,111 Less: Cost of Sales 341,911 355,270 Net Operating Revenues 2,043,554 1,892,841 Oneratina Exoenses Personal services 1,258,271 1,144,161 Supplies 152,491 150,743 Other services 493,619 478,017 Insurance 36,255 41,202 Utilities 137,229 141,510 Rent 54,134 34,448 Depreciation 347,505 343,328 Totat Operating Expenses 2,479,504 2,333,409 Operating Loss (435,950) (440,568) Nonoqeratina Revenue or Expense(-1 Loss on disposal of fixed assets (347) (105) Interest and fiscal agent fees (31,653) (22,701) Total Nonoperating (32,000) (22,806) Operating Transfers In 124,842 Net Loss (467,950) (338,532) Depreciation on contributed assets that reduces contributed capital 336,822 338,b32 Retained Earnings January 1 19 19 Retained Earnings (Deficit) December 31 ($131,109) $19 -84- I E_� City of Brooklyn Center Recycling 8� Refuse Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 1995 1994 Operatina Revenues Recycling service fees $212,179 $134,740 Operatina Expenses Supplies 554 Other services 214,909 117,447 Insurance 308 871 Total Operating Expenses 215,217 118,872 Operating Income (Loss) (3,038) 15,868 Nonoperatina Revenues Investment earnings 5,632 5,137 Total Nonoperating 5,632 5,137 Net Income 2,594 21,005 Retained Earnings January 1 105,712 84,707 Retained Earnings December 31 $108,306 $105,712 -85- City of Brooklyn Center E-8 Water Utility Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 1995 1994 Operatinp Revenues Service to customers $968,257 $962,369 Sale of ineters 23,768 33,140 Penalties 56,809 58,180 Total Operating Revenues 1,048,834 1,053,689 Operatinq Expenses Personal services 376,422 319,984 Supplies 87,234 79,614 Contractual services 185,115 160,136 Insurance 12,981 12,277 Utilities 151,405 148,962 Depreciation 241,251 236,850 Total Operating Expenses 1,054,408 957,823 Operating Income (Loss) (5,574) 95,866 Nonoqeratinq Revenues or Expenses(-1 Investment earnings 290,593 266,561 Special assessments (for hookups definquencies) 8,883 16,177 Other 2,660 1,431 Loss on disposal of fixed assets (494) (5,063) Total Nonoperating 301,642 279,106 Net Income 296,068 374,972 Retained Earnings January 1 8,800,519 8,572,569 Equity Transfer In (Out) (147,022) Retained Eamings December 31 $9,096,587 $8,800,519 -86- City of Brooklyn Center E-9 Sanitary Sewer Fund COMPARATIVE STATEMENT OF REVENUES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 1995 1994 Operatina Revenues Service to customers $2,282,067 $2,126,822 Operatinq Expenses Personal services 186,002 185,622 Supplies 11,110 18,330 Contractual services 137,176 59,066 Metropolitan Council Environmental Services 1,427,330 1,395,261 Insurance 5,774 19,312 Utilities 19,186 19,892 Depreciation 114,132 110,855 Total Operating Expenses 1,900,710 1,808,338 Operating Income 381,357 318,484 Nonoqeratinq Revenues Investment earnings 238,419 202,997 Special assessments (for hookups delinquencies) 5,311 599 Other 72 Gain (loss) on disposal of fixed assets (1,041) 11,291 Total Nonoperating 242,689 214,959 Net Income 624,046 533,443 Retained Earnings January 1 3,977,748 3,663,133 Equity Transfer In (Out) (218,828) Retained Eamings December 31 $4,601,794 $3,977,748 87 City of Brooklyn Center E-10 Storm Drainage Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 1995 1994 Operatinq Revenues Service to customers $788,897 $685,011 Operatin4 Expenses Personal services 102,708 102,491 Supplies 25 3,178 Contractual services 80,141 96,228 Insurance 2,116 2,100 Depreciation 5,471 888 Total Operating Expenses 190,461 204,885 Operating Income 598,436 480,126 Nonoperatin4 Revenues or Exnense(-) Investment earnings 72,881 39,930 Loss on disposal of fixed assets (7,428) Interest and fiscal agent fees (90,925) (30,208) Total Nonoperating (18,044) 2,294 Net Income 580,392 482,420 Retained Earnings January 1 1,350,373 996,311 Equity Transfer In (Out) (128,358) Retained Earnings December 31 $1,930,765 $1,350,373 -88- City of Brooklyn Center, Minnesota INTERNAL SERVICE FUNDS Internal Service Funds are used to account, on a cost reimbursement basis, for the financing of goods or services provided by one department to other departments of the City. Revenues and expenses in these funds are recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. Public Emplovees 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 employees 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. Currently investment earnings are sufficient to provide benefits. 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. r -89- F-� City of Brooklyn Center Intemal Service Funds COMBtNING BALANCE SHEET December 31, 1995 Public Employee Central RetiremeM Garage Totals ASSETS Fund Fund 1995 1994 Current Assets Cash and cash equivalents $103,997 $329,821 $433,818 $277,545 Investments 971,983 3,082,605 4,054,588 3,562,956 Accounts receivable 2,679 10,890 13,569 3,027 Inventories 10,045 10,045 17,874 Total Current Assets 1,078,659 3,433,361 4,512,020 3,861,402 Fixed Assets Eguipment 4,190,101 4,190,101 3,936,720 Less: Ailowance for depreciation 2,205,353 2,205,353 1,982,949 Total Net Fixed Assets 1,984,748 1,984,748 1,953,771 TOTALASSETS $1,078,659 $5,418,109 $6,496,768 $5,815,173 LIABILITIES AND FUND EQUITY Currenf Liabilities Accounts payable $103,362 $103,362 $15,751 Accrued salaries payable 3,837 3,837 3,565 Accrued vacation and sick pay 23,725 23,725 21,099 Accrued health insurance liability $987,081 987,081 205,876 Total Current Liabilities 987,081 130,924 1,118,005 246,291 r Fund Epui Contributions: Transfers from: General Fund 950,000 950,000 950,000 Debt Service Funds 1,335,437 1,335,437 1,335,437 Capital Projects Funds 8,078 8,078 8,078 Enterprise Funds 588,304 588,304 588,304 General Fixed Asset Account Group 976,587 976,587 1,232,536 Total Contributions 3,858,406 3,858,406 4,114,355 Retained Earnings: Unreserved 91,578 1,428,779 1,520,357 1,454,527 Total Fund Equity 91,578 5,287,185 5,378,763 5,568,882 TOTAL LIABILITIES AND FUND EQUITY $1,078,659 $5,418,109 $6,496,768 $5,815,173 90 F City of Braoklyn Center Internal Service Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1995 Public Employee Central Retirement Garage Totals Fund Fund 1995 1994 Oqeratinq Revenues Billingstodepartments $1,178,383 $1,178,383 $1,005,914 Sales 19,367 19,367 22,539 Total Operating Revenues 1,197,750 1,197,750 1,028,453 Operatin4 Exnenses Personal Services $799,522 198,265 997,787 277,284 Supplies 204,439 204,439 180,356 Other Services 51,702 51,702 54,748 tnsurance 27,067 27,067 26,037 Depreciation 353,413 353,413 318,413 Total Operating Expenses 799,522 834,88& 1,634,408 856,838 Operating Income (Loss) (799,522) 362,864 (436,658) 171,615 Nonoaeratina Revenue or Exnense Investment Earnings 64,302 182,237 246,539 161,272 Net Income (Loss) (735,220) 545,101 (190,119) 332,887 Depreciation on contributed assets that reduces contributed capital 255,949 255,949 275,258 Retained Earnings January 1 826,798 627,729 1,454,527 846,382 Retained Earnings December 31 $91,578 $1,428,779 $1,520,357 $1,454,527 r 91 F City of Brooklyn Center Intemal Service Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1995 Employee Central Retirement Garage Totals Fund Fund 1995 1994 Cash flows from operatinq activities: Operating income (loss) ($799,522) $362,864 ($436,658) $171,615 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 353,413 353,413 318,413 Changes in assets and liabilities: Accounts receivable 31 (10,573) (10,542) (3,027) Inventories 7,829 7,829 (17,874) Accounts payable 87,611 87,611 15,751 Accrued salaries and leave 2,898 2,898 24,664 Accrued health insurance liability 781,205 781,2�5 {10,668) Net cash provided by (used for) operating activities (18,286) 804,042 785,756 498,874 Cash flows from caoital and related financinq activities: Capital contributions 1,060,989 Acquisition of fixed assets (384,390) (384,390) (578,997) Net cash provided by capital and related financing activities: (384,390) (384,390) 481,992 Cash flows from investin4 activities: Investments purchased (740,269) (2,770,736) (3,511,005) (1,817,088) Investments sold or matured 723,817 2,295,556 3,019,373 825,918 Interest on investments 64,302 182,237 246,539 161,272 Net cash provided by (used for) investing activities 47,850 (292,943) (245,093) (829,898} Net increase (decrease) in cash and cash equivalents 29,564 126,709 156,273 150,968 Cash and cash equivalents at beginning of the year 74,433 203,112 277,545 126,577 Cash and cash equivalents at end of the year $103,997 $329,821 $433,818 $277,545 NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES Contribution of fixed assets from other funds $216,188 Fixed Assets transferred to General Fixed Assets Account Group, net of depreciation 24,161 -92- City of Brooklyn Center, Minnesota AGENCY FUNDS Agency Funds are established to account for assets held by the City as an agent for other City Funds, governments, or individuals. The Agency Funds are maintained on the modified accrual basis of accounting. The City's Agency Fund included in this section is: Em�lovee Deferred Comnensation Fund: This fund was established to account for funds on deposit with the trustees who administer the City sponsored deferred compensation plan. -93- City of Brooklyn Center G Employee Deferred Compensation Fund STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended December 31, 1995 December 31, December 31, 1994 1995 Balance Additions Deductions Balance ASSETS Investments for deferred compensation plans held by trustees (1) $2,635,726 $662,472 $123,437 $3,174,761 TOTAL ASSETS $2,635,726 $662,472 $123,437 $3,174,761 LIABILITIES Due to employees for deferred compensation $2,635,726 $662,472 $123,437 $3,174,761 TOTAL LIABILITIES $2,635,726 $662,472 $123,437 $3,174,761 (1) Investments are reported at market value. -94- 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 on those assets. -95- City of Brooklyn Center S� SCHEDULE OF CHANGES IN GENERAL FiXED ASSETS BY SOURCE For the Year Ended December 31, 1995 January 1, December 31 1995 1995 Balance Acquisitions Disposals Balance Investments in General Fixed Assets Land $2,369,801 $2,369,80� Buildings and improvements 5,417,234 $814,058 $15,795 6,215,49 Park improvements 3,039,104 114,806 43,279 3,110,631 Furniture 1,114,241 415,233 222,795 1,306,67 Departmental equipment 1,045,429 88,144 51,026 1,082,54 Total Investments in General Fixed Assets $12,985,809 $1,432,241 $332,895 $14,085,155 Sources of Investments Generallndebtedness $1,108,533 $28,877 $1,079,656 General Fund revenues 5,327,780 $236,633 133,405 5,431,0081 Liquor store income 168,034 4,377 163,657 Contributions 204,834 32,393 5,336 231,891 Capital projects funds 5,360,870 1,163,215 139,650 6,384,435, Federal grants 815,758 21,250 794,508 Total Sources of Investments $12,985,809 $1,432,241 $332,895 $14,085,155 -96- s i■■i s-� City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1995 Buildings and Park Furniture and Function Land Improvements Improvements Equipment Total General government $444,737 $444,737 Government buildings $303,770 $5,569,456 $292,329 338,736 6,504,291 Public safety 70,450 1,133,052 1,203,502 Public works 145,350 145,350 Recreation 257,958 257,958 t Parks 2,066,031 575,591 2,818,302 69,393 5,529,317 Totals $2,369,801 $6,215,497 $3,110,631 $2,389,226 $14,085,155 S-8 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 1995 General Fixed General Fixed Assets Assets January 1, December 31, Function 1995 Additions Deductions 1995 Genera( government $495,501 $41,785 $92,549 $444,737 Government buildings 5,426,509 1,099,614 21,832 6,504,291 Public safety 1,147,127 132,304 75,929 1,203,502 Public works 186,411 27,388 68,449 145,350 Recreation 264,995 21,827 28,864 257,958 Parks 5,465,266 109,323 45,272 5,529,317 Totals $12,985,809 $1,432,241 $332,895 $14,085,155 r r■� r r�■� 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. -99- i 1 City of Brooklyn Center H I COMPARATIVE STATEMENT OF GENERAL LONGTERM DEBT December 31, 1995 December 31, 1995 1994 Amounts Available and to be Provided Amounts available in Debt Service Funds $6,451,107 $5,688,104 Amounts to be provided: From future tax levies 1,206,259 747,245 From future tax increments 12,102,634 8,659,65t From future gas tax allocations 2,455,000 2,605,000 Total Available and to be Provided $22,215,000 $17,700,000 General Lonp-Term Debt Pavable State Aid Street Bonds $2,455,000 $2,605,000 Special Assessment Bonds 1,705,000 1,010,000 Tax Increment Bonds 18,055,000 14,085,000 Total General Long-Term Debt $22,215,000 $17,700,000 100 �I City of Brooklyn Center I SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1995 State Aid Specia! Total Debt Street Bonds Assessment Bonds Tax Increment Bonds Service Requirements Year Principal Interest Principai Interest Principal Interest Principai Interest 1996 $160,000 $147,872 $115,000 $69,790 $4,850,000 $888,999 $5,125,000 $1,106,661 1997 170,000 138,588 185,Q00 71,675 780,000 755,892 1,135,000 966,955 1998 180,000 128,478 150,000 64,240 840,000 715,040 1,170,000 907,758 1999 190,000 117,560 155,000 57,470 1,165,000 662,233 1,510,000 837,263 2000 205,000 105,706 160,000 50,237 1,280,000 595,554 1,645,000 751,497 2001 220,000 92,740 160,000 42,704 1,450,000 519,409 1,830,000 654,853 0 2002 230,000 78,788 165,000 34,919 1,540,000 433,892 1,935,000 547,599 I 2003 245,000 63,821 170,000 26,728 1,645,000 340,412 2,060,000 430,961 2004 265,000 47,496 175,000 18,120 1,775,000 237,302 2,215,000 302,918 2005 285, 000 29, 616 180, 000 9, 062 360, 000 171,123 825, 000 209, 801 2006 305,000 10,141 90,000 2,205 360,000 147,362 755,000 159,708 2007 385, 000 122, 585 385, 000 122, 585 2008 385,000 96,694 385,000 96,694 2009 400,000 70,200 400,000 70,200 2010 415,000 42,694 415,000 42,694 i 2p� 425,000 14,344 425,000 14,344 $2,455,000 $960,806 $1,705,000 $447,150 $18,055,000 $5,813,735 $22,215,000 $7,221,691 City of Brookl n Center, Minnesota Y 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. -102- TABLE 1 City of Brooklyn Center GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION Last Ten Fiscal Years Fiscal General Public Public Community Parks and Economic Non- Total Year Government Safety Works Services Recreation Development Departmental Expenditures 1986 $1,487,876 $2,288,062 $1,549,584 $45,294 $1,405,020 $378,688 $7,154,524 1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436 1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571 i 0 1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517 w 1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441 1992 1,797,895 3,938,920 1,594,190 114,579 1,783,811 187,606 273,273 9,690,274 1993 1,560,674 3,870,563 1,756,187 41,325 1,999,270 178,703 300,803 9,707,525 1994 1,692,268 4,409,490 1,230,565 41,495 2,055,479 199,982 312,779 9,942,058 1995 $1,831,045 $4,598,618 $1,363,244 $41,146 $2,226,121 $209,576 $289,747 $10,559,497 I Note: Table includes General Fund only. Source: City Finance Department Records I TABLE 2 City of Brooklyn Center GENERALGOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE Last Ten Fiscal Years I I General Other Fiscal Property Licenses Intergovern- Charges for Court Financing Totaf Year Taxes Permits mental Services Fines Misc. Sources Revenue �I 1986 $2,566,220 $411,406 $2,866,442 $965,527 $224,753 $318,453 $341,403 $7,694,204 1987 2,541,016 345,019 3,060,252 1,114,203 269,903 310,613 166,888 7,807,894 1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306 1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443 i 1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070 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 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 Note: Table includes General Fund only. Source: City Finance Department Records TABLE 3 Ciry 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 Coltected 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. 1986 $2,886,824 $2,849,382 98.70°!0 $32,739 $2,882,121 99.84°Io $390,912 13.54% 1987 3,396,789 3,242,573 95.46% 68,651 3,311,224 97.48% 73,052 2.15% 1988 3,576,812 3,488,174 97.52°10 13,090 3,501,264 97.89°l0 105,521 2.95% 1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08% 84,948 2.42% 0 u 1990 4,�92,978 3,857,576 94.25°l0 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% i 1994 5,857,342 5,634,255 96.19% (176,148) 5,458,107 93.18% 246;311 4.21% I 1995 $6,501,197 $6,367,437 97.94% ($75,645) $6,291,792 96.78% $288,716 4.44% Total tax levy is net of Homestead and Agricultural Credit Aid. Source: City Finance Department Records r r TABLE 4 City of Brooklyn Center ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (7) Last ien Fiscal Years 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995(3) I Population 30,267 29,�59 29,420 28,578 28,810 28,887 28,558 28,533 28,484 28,484 Real PropeAy Assessed value (1): Tax 7ax(2j Tax Tax 7ax Tax 7ax i City Capacity Capaciry Capacity CapacRy Capacity Capacity Capacity Residential $90,912,548 $91,929,246 $90,162,927 $11,834,805 510,133,274 $9,730,898 $9,793,012 $9,077,238 $9,110,096 $9,045,048 Non-residential 725,109, 658 139, 433, 999 154, 031, 355 19, 707, 624 16,185, 832 16, 305, 868 16,013, 701 14, 654,123 13, 665,143 13, 567, 573 Area-wide allocation (2 (1,345,864) (8,148,681) (977,841) (1,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) 213,924,673 230,017,381 236,045,601 30,564,588 24,953,871 24,fi51,830 23,656,616 22,197,594 21,820,623 21,925,326 Less Tax Increment District 4,057,611 5,437,588 9,784,473 2,097,505 t,540,518 1,315,724 1,374,157 1,184,328 1,165,933 1,230,055 Totalassessedvalue 209,867,062 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459 21,013,266 20,654,690 20,695,271 Estimated Market Value 813,377,800 854,846,550 910,336,300 950,463,900 1,000,269,000 1,016,754,000 1,015,968,800 978,404,100 959,668,700 961,811,400 F-+ O Personal Property Assessed value 4,291,916 4,296,001 4,510,313 190,299 530,526 539,121 543,237 549,751 622,500 622,500 Estimated market value 9,987,200 9,990,700 10,489,100 3,627,500 10,610,520 10,564,700 11,349,900 11,951,100 13,532,600 13,532,600 Total Taxable Property Assessedvalue $214,158,978 $228,875,794 $230,771,441 $28, 657,382 23,943,879 $23,875.227 $22,825.696 $21,563,017 $21,277,190 $21,317,771 Estimated market value $823,359, $864,837, $920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 $1,012,179,300 $990,355,200 $973,207,300 $975,344,000 Assessed Value as a percent of Estimated Market Value 26.01% 26.46% 25.06% 3.00% 2.37% 2.32% 2.26% 2.18% 2.19% 2.79Yo I Per Capita Valuations Assessed Value $7,076 $7,691 $7,844 $1,003 $831 $827 $799 $756 $747 $748 Estimated Market Va�ue $27,203 $29,061 $31,299 $33,386 $35,088 $35,563 $35,443 $34,709 $34,167 534,242 Source: City Assessing Department Records and Hennepin County (1) The Minnesota Legfsiature changed the property tax system for taxes payable in 1989. The tax base of property was changed Trom assessed values to tax capacity values. I (2) The reduction in residendal values is due to a change in the state mandated formula from gross lax capacity to net tax capacity. (3j The 1995 population estimate was not avatlable. The 7994 popuiation estimate was used. TABLE 5 City of Brooklyn Center DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES Last Ten Fiscal Years TAX RATES IN MILLS (1) Hennepin School Districts County Total City. School. and Countv Year Vo-7ech No.286 No.279 No.281 No.11 Special No.286 No.279 No.281 No.11 Collectible City (2) School Earl Brown Osseo Robbinsdale Anoka Districts Eari Brown Osseo ftobbinsdale Anoka 1986 17.183 1.535 52.545 54.345 59.450 55.740 35.566 106.829 108.629 113.734 108.489 1987 18.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408 1988 19.237 1.493 59.372 61.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823 TAX RATES IN TAX CAPACITY RATES(2) 1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542 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 Q.513 54.696 65.766 58.723 56.525 40.888 117.Ot 9 128.089 121.046 118.335 1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 t 30.143 1994 27.030 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439 1995 29.532 76.861 70.142 67.197 61.402 45.370 151.763 145.044 142.099 136.304 TAX LEVIES IN DOLLARS School Districts Hennepin County 8 Total City, p Year Vo-Tech No. 286 No. 279 No. 281 No. t t Special Schoots, Collectible City (2) Schoo{ Ea�l Srown Osseo Robbinsdale Anoka Districts and County i 1986 $2,886,824 $327,794 $3,776,253 $3,194,101 $3,476,104 $1,329,107 $7,593,315 $22,583,498 1987 3,396,789 293,194 3,900,388 3,409,323 3,726,934 1,327,348 8,088,560 24,142,536 1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559 1889 3,505,850 293,205 4,059,518 3,770,603 3,791,546 2,179,665 8,776,213 26,376,600 1990 4,092,978 244,258 3,718,102 3;171,054 4,028,724 1,099,641 8,052,590 24,A07,347 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 $8,557,035 329,797,465 Source: City Community 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 inciudes Brooklyn Center E.D.A. and H.R.A.. I i ai■ r �w TABLE 6 City of Brooklyn Center SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Collection Collections Year Assessment of of Prior Total to Current I Collected Billinqs Amount Billings Years Collections LeW I 1986 $631,296 $631,165 99.98% $11,953 $643,118 101.87% I 1987 572,851 552,168 96.39% 3,139 555,307 96.94% 1988 556,028 526,594 94.71 2,723 529,317 95.20% I 1989 562,484 545,242 96.93% 59,944 605,186 107,59% I 1990 504,682 476,874 94.49% 14,327 491,201 97.33% 9991 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% 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% Source: City Finance Department Records TABLE 7 City of Brooklyn Center RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscai Years Less: Ratio of Net Net Gross Amounts Net Bonded Debt Bonded Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per Year Population Value Debt (1) Service Fund Debt Values Capita 1986 S30,267 $214,158,978 $2,020,000 5945,736 $1,074,264 0.50% 35.49 1987 29,759 228,875,794 1,740,000 683,294 1,056,706 0.46°/a 35.51 1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41 Less: Ratio of Net Net Tax Gross Amounts Net Bonded Debt to Bonded o Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per �o Year Population Value Debt (1) Service Fund Debt Value Capita 1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92 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 28,4$4 21,277,190 0.00% 1995 (2) 28,484 $21,317,771 SO SO SO 0.00°k $0 Source: City Finance Department Records and Hennepin County (1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds. I (2) 1994 population estimate. r Table 8 City of Brooklyn Center COMPUTATION OF LEGAL DEBT MARGIN December 31, 1995 Market Value $975,344,000 Debt (imit, 2% of market value 19,506,880 Total bonded debt 24,045,000 Deductions (See Note 5): A. Bonds 1. Special Assessment Bonds 1,705,000 2. State Aid Street Bonds 2,455,000 3. Tax Increment Bonds 18,055,000 4. Utility Revenue Bonds 1,830,000 Total Deductions 24,045,000 Total Debt Applicable to Debt Limit 0 Le al Debt Mar i c mbe 995 19 506 880 g gn,Dee r31,1 Source: City Finance and Community Development Records 1 1 1 _��o_ TABLE 9 City of Brooklyn Center COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1995 City's Share Governmentai Unit Gross Debt Sinking Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $0 $0 $0 100.0°l0 $0 Overlapping Debt: School Districts: No.281 Robbinsdale 0 (22,273) 22,273 9.40% 2,094 No.11 Anoka 144,562,792 38,053,799 106,508,993 5.90% 6,284,031 No.279 Osseo 165,760,000 48,296,249 117,463,751 6.38% 7,494,187 No. 286 Earl Brown 4,650,000 0 4,650,000 100.00% 4,650,000 Metropofitan Transit 1,400,000 0 1,400,000 1.19% 16,660 Metropolitan Council (2) 100,140,000 10,514,473 89,625,527 1.08% 967,956 Hennepin County 80,495,000 6,081,905 74,413,095 1.96% 1,458,497 Hennepin County Park Reserve District 18,245,000 2,196,754 16,048,246 2.68% 430,093 i Total Overlas�aina Debt 515,252,792 105,120,907 410,131,885 21,303,517 Total Direct and Overlapping Debt $515,252,792 $105,120,907 $410,131,885 $21,303,517 Source: City Finance Department Records, Hennepin County, and I.S.D. 11, Anoka (1) Includes only general obligation debt which is being repaid through property taxes. (2) The Metropolitan Council also has outstanding $283,645,000 of general obligation sanitary sewer bonds and loans which are supported by system revenues. Direct Overlapping Com�arative Net Debt Ratios Charaeable to Citv Total Debt Debt Debt to tax capacity value $21,317,771 99.93% 0.00% 99.93% Debt to market value $975,344,000 2.18% 0.00% 2.18% Per capita debt, population 28,484 $747.91 $0.00 $747.91 I r i r 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 1986 $275,000 $507,558 $782,558 $7,154,524 10.94% 1987(1) 2,475,000 930,252 3,405,252 7,649,436 44.52% 1988 640,000 682,561 1,322,561 8,502,109 15.56% 1989 635,000 626,068 1,261,068 9,062,571 13.92% 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% 1992(2) 1,880,000 1,195,204 3,075,204 9,690,274 31.73% 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% Source: City Finance Department Records (1) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. (2) Amounts for 1992 are higher because Tax Increment Bonds of 1983 were called for payment prior to maturity. 112 TABLE 11 City of Brooklyn Center SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Ratio of Net Non- Net Revenue Operating Operating Gross Revenue to Debt Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service Water Utifitv Fund 1986 $473,279 $488,834 $962,113 $506,466 $455,647 $45,000 $12,399 $57,399 7.938 :1 1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1 1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1 1989 687,982 425,U30 1,113,012 665,629 447,383 45,000 7,180 52,180 8.574 :1 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 $301,642 $1,350,476 $813,157 $537,319 $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 21'1,425 513,516 0 30,208 30,208 17.00 :1 1995 $788,897 $72,881 $861,778 $184,990 $676,788 $0 $90,925 $90,925 7.44 :1 Source: City Finance Department Records (1) Excludes depreciation and interest on bonds. (2) The Storm Drainage Fund was established in 1991. I r i r I TABLE 12 City of Brooklyn Center PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS Last Ten Fiscal Years Commercial Residential Construction Construction Property Value Bank Year Value Units Value .Commercial Residential Non-Taxable Deposits 1986 $14,689,661 157 $9,737,806 $199,882,500 $613,694,000 $64,906,838 N/A 1987 7,220,527 9 885,202 246,784,100 608,890,900 92,384,868 N/A 1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A 1989 7,288,205 4 278,138 321,452,800 678,898,700 83,719,768 $219,077,986 1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488 1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156 1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 199,800,971 1993 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700 200,539,494 1994 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200 197,886,000 1995 $9,541,847 2 $153,000 $297,268,000 $678,076,000 $110,458,200 $255,238,839 Source: City Finance Department Records, Community Development Department Records, and Local Banks. TABLE13 City of Brooklyn Center PRINCIPAL TAXPAYERS December 31, 1995 Percentage 1995 of Total Market Market Taxpayers Type of Business Valuation Value S C Ltd Partners Brookdale Shopping Center $49,819,800 5.11 Dayton-Hudson Corp. Department Stores 22,756,100 2.33% Prudential Insurance Co. Sho in Center/Office Buildin s 14 846 100 1.52% Pp 9 9 Ryan Construction Office Buildings 14,487,900 1,49% First Industrial Realty Trust Warehouse/Office Buildings 9,486,600 0.97% Sears Roebeck and Co. Department Store 9,161,100 0.94% Twin Lake North Apartments 6,624,000 0.68% NW Raquet Clubs Health Club/Fitness 6,232,100 0.64% Plaza RE Partners Hilton Hotel 5,280,000 0.54°/a Lutheran Brotherhood Office/Warehouse 5,027,600 0.52% Total Market Value $133,413,700 13.68% TOTAL CITY MARKET VALUE $975,344,000 Source: City Community Development Records 115 City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued next page) Effective January 1, 1996 Policy Period Tvoe of Coveraae and Details From To Liability Limits I. Statutorv Liabilitv to Emnlovees a. Workers' Compensation 01-01-96 01-01-97 Statutory (participant in the League of Minnesota Cities Insurance Trust Self- Insured Workers' Compensation Program) II. Liabilitv to the Public a. Comprehensive general liability include 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 01-01-96 01-01-97 $600,000 combined single limit (2) Property damage 01-01-96 01-01-97 $600,000 combined single limit (3) Personal injury 01-01-96 01-01-97 $600,000 combined single limit b. Automobile liability, comprehensive 01-01-96 01-01-97 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence c. Liquor stores' dram shop 01-01-96 01-01-97 $1,000,000 each common cause d. Goif Course and Central Park 04-01-96 10-3'I-97 $1,000,000 each common liquor liability cause e. Personal accident, Council 0'1-01-96 01-01-97 $100,000 accidental death Commissions $400/week short term disability $1,000 Medical f. Personal accident, Volunteers 01-01-96 01-01-97 $100,000 accidental death $400/week short term disability $1,000 Medical 116 City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 1996 Buiidings and Policy Period Structures Content: (Repiacement (Replacement Type of Coverage and Details From To Cost) Cost) III. Insurance on City Property 01-01-96 01-01-97 a. Public and institutional property, all risk, blanket $33,914,000; $1,000 deductible replacement value on buildings. (1) Civic Center $8,066,000 $1,170,000 (2) East Fire Station $694,000 $153,000 (3) Municipal Service Garage $2,800,000 $550,000 t (4) Elevated Water Towers 3 locations $3,722,000 $0 (5) Park Shelter Buildings 17 locations $1,557,000 $55,000 (6) Pump Houses 10 locations $96'1,000 $110,000 (7� Lift Stations 10 locations $1,140,000 $71,000 (8) Meter Station $17,000 $0 (9) Storage Building $429,000 $20,000 (10) Outdoor ligFiting systems 7 locations $316,000 $0 (11) Liquor Store and Fire Station $575,000 $330,000 (12) Humboldt Liquor Store $254,000 $170,000 (13) Leased Liquor Store $51,000 $180,000 (15) Pedestrian Bridge 2 locations $1,152,000 $0 (16) Picnic Shelter $58,000 $0 (17) Earle Brown Heritage Center $7,427,000 $1,462,000 (18) Centerbrook Golf Course Club House $335,000 $22,000 (19) Centerbrook Golf Course Garage $37,000 $7,000 (20) l.ions Park Concession Stand $37,Q00 $3,000 Liability Limits b. Boiler and machinery 01-01-96 01-01-97 $5,000,000 per accident c. Automotive physical damage 01-01-96 01-01-97 (1) Comprehensive ACV-$1,OOOdeductible (2) Collision ACV $1,000 deductible 1V. Criminal Acts a. Faithful pertormance blanket position $5Q0,000 per loss b. Money and securities (broad form) Various c. Depositor's forgery $100,000 117 TABLE 15 City of Brooklyn Center DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enroliments (2) Mpis-St:Paul No. 286 Fiscal Unempioyment C.P.I. No.11 No.279 No.281 Earle Year Population Rate (1) %(1) Anoka Osseo Robbinsdale Brown 1986 30,267 3.9% 1.3% 1,011 1,838 555 1,361 1987 29,759 4.1 3.0% 989 1,674 570 1,376 1988 29,420 3.5% 5.0% 989 1,674 563 1;456 1989 28,578 3.5% 4.1 671 1,674 563 1,652 1990 28,810 3.2% 4.1 642 1,69 6 540 1,747 1991 28,887 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 (3) 28,484 2.9% 2.8% 664 1,113 567 1,645 (1) Minnesota Department of Jobs and Training, Research and Statistics Dept. Twin Cities metro area average for year. (2) School enrollment data was supplied by the schoots. (3) 1994 population estimate. 128 TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1995 Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Govemment Council-Manager Fiscal Year Begins January 1 Area of City 8 1J2 square miles Miles of Streets: City 105.69 County 6.49 State 10.79 Miles of Storm Sewers 41.13 Number of Street Lights Owned by N.S.P 1007 Owned by City 73 Building Permits: Number Estimated Issued Cost 1995 603 $11,948,205 1994 607 13,418,453 1993 520 11,437,250 1992 573 14,286,465 1991 466 8,800,980 1990 504 8,035,605 1989 526 19,217,696 1988 554 10,846,987 1987 573 10,421,724 1986 604 28,594,810 City Employees as of December 31, 1995 Regular full-time 149 Temporary or part-time 177 Total 326 Fire Protection: Number of Stations 2 Number of Full-time Employees 1 Number of Volunteer Firefighters 26 Police Protection: Number of Stations 1 Number of Full-time Employees 58 Number of Part-time Employees 14 119 Cit of Brookl n Center TABLE 16 Y Y MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 1995 prior page) Parks and Recreation: Park property totals 522 acres developed to serve a wide variety of recreational interests. Area include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Playgrounds Park shelters 17 Ice skating rinks 7 Hockey rinks 5 Softball diamonds 26 Baseball diamonds 6 Tennis courts 8 Basketball courts 15 Municipal Water Plant: Number of connections 8,773 Average daily consumption in gallons 3,468,025 Peak daily consumption in gallons 8,693,000 Plant capacity gailons per day 17,652,000 Miles of water mains 114.582 Number of fire hydrants 955 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.86 Municipal Sewer Plant: Number of connections 8,775 Miles of sanitary sewer 104.98 Daily disposal capacity in gallons 10,938,240 Number of lift stations 10 Residential rate per quarter $42.50 Municipal Liquor Stores (Off-sale): Number of owned stores 2 Number of leased stores 1 1995 sales $2,696,776 Elections: Last General Election November 8, 1994 Registered voters 17,593 Votes cast 10,751 Percentage of registered voters voting 61 Last Municipal Election 1994 Reg+stered voters 17,593 Votes cast 10,751 Percentage of registered voters voting 61% 120