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Home My WebLink AboutCAFR-1990 COMPREHENSIVE ANNUAL AUDITED FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 1990 I GERALD G. SPLINTER, CITY MANAGER Prepared by THE DEPARTMENT OF FINANCE Paul W. Holmlund, Director (Member of Government Finance Officers Association of the United States and Canada) 1 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31. 1990 TABLE OF CONTENTS Exhibit Page Number Number I. INTRODUCTORY SECTION Title Page Table of Contents 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's Report 14 A. General Purpose Financial Statements (Combined Statements Overview): 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 lg Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget And Actual General and Special Revenue Funds 3 19 Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary Fund Type 4 20 Combined Statement of Cash Flows Proprietary Fund Type 5 21 Notes to Financial Statements 22 49 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1990 TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining and Individual Fund Financial Statements: General Fund: Balance Sheet A-1 51 Statement of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual A-2 52 Schedule of Revenue Other Financing Sources Budget and Actual S-1 53 55 Schedule of Expenditures Compared to Budget (GAAP Basis) S-2 56 61 Special Revenue Funds: Combining Balance Sheet B-1 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual B-2 64 66 Debt Service Funds: Combining Balance Sheet C-1 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 69 Capital Projects Funds: Combining Balance Sheet D-1 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 72 Project-Length Schedule of Construction Projects Capital Improvements Fund S-3 73 Project-Length Schedule of Construction Projects Municipal State Aid Construction Fund S-4 74 Project-Length Schedule of Construction Projects Special Assessment Construction Fund S-5 75 1 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1990 TABLE OF CONTENTS Statement/ Schedule Page Number Number Enterprise Funds: Combining Balance Sheet F-1 77 78 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 79 Combining Statement of Cash Flows F-3 80 Statement of Revenues, Expenses, and Changes in Retained Earnings Municipal Liquor Fund F-4 81 Statement of Revenues, Expenses, and Changes in Retained Earnings Golf Course Fund F-5 82 Statement of Revenues, Expenses, and Changes in Retained Earnings Earle Brown Heritage Center Fund F-6 83 Statement of Revenues, Expenses, and Changes in Retained Earnings Refuse Recycling Fund F-7 84 Balance Sheet Public Utilities Fund F-8 85 86 Statement of Revenues, Expenses, and Changes in Retained Earnings Public Utilities Fund F-9 87 Schedule of Water Operating Expense S-6 88 Schedule of Sewer Operating Expense S-7 89 Statement of Changes in Assets and Liabilities Employee Deferred Compensation Fund G 91 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets By Sources S-8 93 Schedule of General Fixed Assets By Function and Activity S-9 94 Schedule of Changes in General Fixed Assets By Function and Activity S-10 95 Citv of Brooklvn Center COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 1990 TABLE OF CONTENTS Statement/ Schedule Page Number Number General Long-Term Debt Account Group: Comparative Schedule of General Long-Term Debt H 97 Summary of Debt Service Requirements to Maturity I 98 III. STATISTICAL SECTION Table Page Number Number General Governmental Expenditures and Other Uses 1 100 General Governmental Revenues and Other Financing Sources 2 101 Property Tax Levies and Collections 3 102 Assessed and Market Value of Taxable Property 4 103 Property Tax Rates and Tax Levies All Overlapping Governments 5 104 Special Assessment Collections 6 105 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 106 Computation of Legal Debt Margin 8 107 Computation of Direct and Overlapping Debt 9 108 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 109 Revenue Bond Coverage 11 110 Property Value and Construction 12 111 Principal Taxpayers 13 112 Insurance Coverage 14 113-114 Demographic Statistics 15 115 Miscellaneous Statistics 16 116-117 Citv of Brooklvn Center CITY OFFICIALS For the Year Ended December 31. 1990 ELECTED OFFICIALS Term of Office Term Expires Mayor Todd Paulson Four Years 12/31/94 Councilwoman Celia Scott Four Years Z2/31/94 Councilman David Rosene Four Years 12/31/94 Councilman Gerald Pedlar Four Years 12/31/92 Councilman Philip Cohen Four Years 12/31/92 APPOINTED OFFICIALS City Manager Gerald G. Splinter i� City Clerk Patricia A. Page City Treasurer Paul W. Holmlund City Attorney Holmes Graven City Prosecutor Carson Clelland Department Heads: Finance Paul W. Holmlund Public Works Sy Knapp Police James Lindsay Fire Ronald Boman Planning Inspection Ronald Warren Recreation Arnold Mavis Assessing Mark Parish Liquor Stores Gerald Olson Personnel Coordinator Geralyn Barone EDA Coordinator Brad Hoffman City Engineer Mark Maloney Public Works Superintendent Richard Ploumen Health Officer Duane Orn, M.D. Fire Marshall Ronald Boman Sanitarian Pam Foster Civil Defense Coordinator James Lindsay I -1- ORGANIZATION CHART COUNCIL-MANAGER PLAN City of Brooklyn Cent er, Minnesota ADVISORY CHARTER COMMISSION Various Ad Hoc Committees ELECTORATE (appointed by district court) ADVISORY CITY ATTORNEY Housing Commission i ADVISORY CI7Y C(�UNCIL Human Rights Resources Commission PERSONNEL COORDINATOR ADVISORY EDA COORDINATOR Parks Recreation Commission N CITY MANAGER I ADVISORY cin c�ERK i Planning Commission I' T R EAR�E I Pr�e edy HERI p I I ness CENTER �e I I I r i I i I I �A I DIRECTOR DIRECTOR DIRECTOR CHIEF DIRECTOR CHIEF MANAGER DIRECTOR SSESSOR i Planning o f Finance of Volunteer Public and Recreation Department Police Environ- Liquor Tax Inspection Cit mental Fire Stores Works Assessment De artment I� Department De artment De artment p Treas�irer Health p p Department I I I I I Golf i ii y Course Programs Park Government Public Maintenance Buildings Engineering Street Utilities Centerbrook Community Division Division Division Division Center ivision i r CITY 6301 SHINGLE CREEK PARKWAY oF BROOKLYN CENTER, MINNESOTA 55430 B ROOKLYN TELEPHONE: 569-3300 C ENTER FAX: 569-3494 EMERGENCY POLICE FIRE 911 June 3, 1991 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, 1990. Minnesota Statutes and City Charter, Section 7.12, require that the financial statements of the City of Brooklyn Center be audited by the State Auditor or a certified public accountant selected by the City Council. This requirement has been complied with by the engagement of the firm of Deloitte and Touche 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 seven 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. Res fully submitted, Gerald Splinter City Ma ager c 19B6ALL+IMEliCACffY �,>III 6301 SHINGLE REEK PA CITY C RKWAY oF BROOKLYN CENTER, MINNESOTA 55430 i B ROOKLYN TELEPHONE: 569-3300 C ENTER FAX: 569-3494 I EMERGENCY POLICE FIRE 911 I June 3, 1991 Mr. Gerald G. Splinter City Manager City of Brooklyn Center Dear Mr. Splinter: The comprehensive annual financial report of the City of Brooklyn Center for the fiscal year ended December 31, 1990, 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 government. 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 government. Al1 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. The introductory section includes this transmittal letter, the government's organizational chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the 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 government 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 recommendations, and auditors' reports on the internal control structure and compliance with applicable laws and regulations, are issued as a separate report. 5��>�� 1 -4- The City provides the full range of municipal services contemplated by statute or charter. This includes public safety (police and fire), streets, sanitation, health and 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 know as the Earle Brown Heritage Center. Net revenue produced in excess of working capital requirements by the municipal liquor stores operations have been used toward financing current expense and capital outlay programs of the General Fund. REPORTING ENTITY In accordance with Governmental Accounting Standards Board pronouncements, the City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies, outstanding debt secured by the City's full faith and credit or revenues, and responsibility of funding deficits. As a result of applying this criteria, certain organizations have been included or excluded from the City's financial statements, as follows: INCLUDED: Housing and Redevelopment Authority (HRA) and Economic Development Authority in and for the City of Brooklyn Center (EDA). HRA and EDA were created by the City to provide housing and redevelopment assistance to Brooklyn Center citizens. They provide this assistance through the administration of various programs. Inasmuch as their governing boards are appointed by the City Council, the Council reviews and approves tax levies, the City provides major community development financing for their activities, and the City Manager is the Executive Director, they are considered to be component units for the City. EXCLUDED: The Brooklyn Center Fire De artment Relief Association. P This association is organized as a non-profit organization by its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the organization. All funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the association, tax levies, if necessary, are determined by the association and are only reviewed by the City, and the -5- association pays benefits directly to its members. Because the association is able to fund its programs independently of the City, it is excluded from the reporting entity. Independent School District No. 286 (Earle Brown) Independent School District No. 279 (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 287 (Suburban Hennepin County Area Vocational Technical Institute) These districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and prepare and issue their own financial reports. ECONOMIC CONDITION AND OUTLOOK Brooklyn Center is a first ring suburb on the north-west corner of Minneapolis. Its commercial district is anchored by the Brookdale Shopping Center which was built in the 1960s. Other retail and commercial businesses have grown up around the center and vacant land exists to the northeast for a substantial amount of additional business development. The business district is located at the intersection of four major highways which make it a very attractive location. Commercial development has been hurt by the soft national market for real estate. This is evident both in the fact that 1990 was the first time in many years that no major commercial construction took place and in the high vacancy rates in existing buildings. Vacancy rates improved in early 1991. The City expects to maintain its strong financial position in 1991, despite no increase, or possibly a decrease in state aid. MAJOR INITIATIVES During 1990, the city began reconstruction of 69th Avenue North, a major collector street on the north side of the city. This three year, $6,000,000 project will widen the street to provide a center left turn lane, right turn lanes, better through traffic capacity, and buffer strips between the street and neighborhood. Solving the bottleneck condition which has existed will improve the City's transportation network. The City of Brooklyn Center, along with three neighboring cities, joined to form the North Metro Convention Bureau. Revenues for the Bureau come from a 3% lodging tax on all hotel and motel rooms in the four cities. The Bureau's purpose is to promote conventions, many of which use the facilities of the Earle Brown Heritage Center. Conventions also generate business for the five hotels, and the many restaurants and retail stores in and around the Brookdale shopping center. -6- In order to understand the changing needs of its population, the City of Brooklyn Center authorized Maxfield Research Group to conduct an extensive study of the housing market in the community and changes which are impacting the community's ability to retain and attract households. This study presents an extensive survey of neighborhoods, demographic and housing market data analysis, survey of apartments, and interviews with persons knowledgeable about the housing market. From the findings, strategies are suggested for maintaining and improving the marketability of neighborhoods and serving the changing needs of residents. As a result of this study, the City has added a housing coordinator and funded a new program to redevelop blighted houses in older neighborhoods. The City again retained Maxfield Research Group in 1991 to study office, retail, industrial and hospitality markets and make recommendations. Five districts have been selected due to their prominence in the community, perceived under utilization, and other factors that pointed to their redevelopment potential. FINANCIAL INFORMATION Management of the government is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government 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. Sinale Audit. As a recipient of federal, state and county financial assistance, the government also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management and the independent auditors. As a part of the government's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the government has complied with applicable laws and regulations. The results of the government's single audit for the fiscal year ended December 31, 1990 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. -7- i Budaetina Controls. In addition, the government maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the government's governing body. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Project-length financial plans are adopted for the capital projects funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within an individual fund. The government also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts 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 re ort the overnment continues to meet P g its responsibility for sound financial management. General Fund Functions. The following schedule presents a summary of general fund revenues for the fiscal year ended December 31, 1990 and compares them to 1989. General Fund Revenues Other Financina Sources Increase of -Decrease ___1990___ Total 1989 From 1989 Taxes $3,854,798 40.9� $3,325,101 529,697 License ermits 297 495 3.2°s 365 247 -67 752 P Intergovernmental revenue 3,201,888 34.0% 3,628,255 -426,367 Charges for services 1,235,795 13.1� 1,124,167 111,628 Court fines 215,804 2.3� 278,812 -63,008 Misc revenues 443,623 4.7� 425,356 18,267 Other financing sources 174,925 1.8� 176,505 -1,580 TOTAL $9,424,328 100.0� $9,323,443 100,885 The large decrease in intergovernmental revenue is the result of a decision by the State of Minnesota to decrease its local government aid. By the mechanism of the levy limitation laws, this in turn forces there to be a large increase in the City's property tax revenues. Licenses permits are down because for the first time in several years, there wasn't any large commercial construction in the city in 1990. I -s- The following schedule presents a summary of general fund expenditures for the fiscal year ended December 31, 1990 and compares them to 1989. General Fund Expenditures Increase of -Decrease 1990 Total 1989 From 1989 General Government $1,823,298 18.7� $1,793,495 $29,803 Public Safety 3,474,108 35.6� 3,103,222 370,886 Public Works 1,929,950 19.8� 1,754,800 175,150 Community Services 114,633 1.2� 81,043 33,590 Parks Recreation 1,842,294 18.9� 1,814,391 27,903 Economic Development 169,942 1.7$ 168,305 1,637 Non-Departmental 396,550 4.1� 347,315 49,235 TOTAL $9,750,775 100.0$ $9,062,571 $688,204 Public Safety expenditures were increased by the addition of two police officers and two part time employees to the payroll. Supplies, contractual services, and capital outlays were all increased to support the higher overall level of activity. Community Services, while still a small part of the total budget, increased 410. This is primarily the result of shifting some programs from the General Government to the Community Services function. GENERAL FUND BALANCE I When the 1990 General Fund budget was adopted by the City Council, a portion of the fund balance in the amount of $474,551 was dedicated to finance the 1990 appropriations. The fund balance actually decreased by only $359,046 or 6.4� in 1990. The ending fund balance of $5,210,026 is the equivalent of six months of expenditures for the 1991 budget. General property taxes and intergovernmental revenue re resent 75� of the bud eted eneral P g g fund revenue for 1990. The State of Minnesota has structured city finances so all of these revenues are received in the second half of the fiscal year. Minnesota cities typically receive as little as 10� of their revenues in the first six months of the year. In recognition of this fact, a portion of the fund balance is being designated for working capital. The unreserved, undesignated fund balance has decreased to zero as a result of this designation. ENTERPRISE OPERATIONS The City's enterprise operations are comprised of five separate and distinctive activities: Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, and the Water and Sewer utility. The liquor operation is composed of three stores. Two are city owned -9- 1 and�the third is leased. In May 1989 a new long-term lease was signed for the third store and it was remodeled to improve visibility and access. Sales and profits at this store have improved in 1990 as a result of the remodeling. Centerbrook Golf Course began operating in 1988 and began operating at a profit in 1990. Rounds played have increased from 35,700 in 1989 to 38,100 in 1990. Green fees have been increasing each year to keep pace with inflation. Expectations are for the golf course to continue to be profitable and to begin paying back its construction loan. 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 1,000 people in either banquet or theater style. The Inn On The Farm is a bed and breakfast with eleven rooms available to complement convention activities or to be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. The dwindling supply of landfill space for the disposal of garbage has become a maj or 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 Refusing 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 Sewer utility is largely developed and already reaches all parts of the City. Rates for both water and sewer were increased effective January 1, 1990 and again on January 1, 1991. Three fourths of the sewer operating expenses are fees paid to the Metro Waste Control Commission for sewage treatment and those fees increased 11.5� in 1990. Depreciation expense for the sewer utility increased because large capital outlays made in 1989 were depreciated beginning in 1990. Total operating expenses were down for Water and increased moderately for Sewer. AGENCY FUND The Deferred Compensation Agency Fund accounts for the I.C.M.A. Retirement Corporation plan with a market share value totaling $1,793,006 for City employee plan members at year end. DEBT ADMINISTRATION At December 31, 1990, the City had seven debt issues outstanding. These issues included $950,000 of general obligation bonds, $5,860,000 of tax increment debt with government commitment, $745,000 of special assessment debt with a contingent liability and $90,000 of revenue bonds. The City has an A-1 rating from Moody's Investors Service. Under current state statutes, general -io- obligation bonded debt issuances are subject to a legal limitation based on 2.0 percent of total estimated value. As of December 31, 1990, the general obligation bonded debt of $950,000 was well below the legal limit of $19,564,226 and debt per capita equalled $17.40. No bonds were issued during the year. CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to insure 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 12.0 percent to a low of 4.25 percent. Interest earned during 1990 amounted to $2,283,402 compared to $2,256,787 during 1989. The City's written investment policy is to minimize credit and market risk, while maintaining a competitive yield on its portfolio. All deposits were either insured b federal de ositor insurance or Y P Y collateralized. At year end, all deposits were collateralized. 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 hasn't needed to use any short-term debt and doesn't anticipate such a need in the future. 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 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, 1989. 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 reguirements. -11- 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 i, submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Department of Finance. We would like to express our appreciation to all members of the Department, with special recognition to Tim Johnson, Accountant, and Kelly Gooden, Secretary. We would also like to thank the Mayor, Council members and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner, and the independent auditors for their valuable and willing assistance. Respectfully submitted, �.w. i Paul W. Holmlund Director of Finance /Y Gvrt.Q�'yt Charles R. Hansen Assistant Director of Finance I I -12- L- Certif i cate of Achie vement 1 for Ex ce__ence 1 in Finan 1 ca r Ae ortin �p g 1 Presented to Cit of Brook� n Center y y 1 Minnesota For its Comprehensive Annual 1 Financial Report for the Fiscal Year Ended December 31, 1989 1 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 (CAFR's) achieve the highest standards in government accounting and financial reporting. P �10E Of/c f' 9 UWI 0 8 AiES y �o President ur�o� o 6 CORPORAiION `''o S�AL cN�c� o Executive Director 1 Deloitte Touche 900 Pillsbury Center Facsimile: (612) 375-5418 Minneapolis, MN 55402-1483 Telephone: (612) 333-2301 INDEPENDENT Ai1DTTORS' 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 Ciry) as of December 31, 1990 and for the year then ended, listed in Section II of the foregoing table of contents. These general purpose financial statements aze the responsibility of the City's management. Our responsibiliry is to express an opinion on these general purpose financial statements based on our audi� We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements aze 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 si�cant estimates made by management, as well as evaluating the over�ll 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 Ciry of Brooklyn Center, Minnesota at December 31, 1990 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 aze also the responsibility of the �ity's management, are presented for purposes of additional analysis and aze not a required part of the 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 piapose financial statements taken as a whole. As discussed in Note 17 to the general purpose financial statements, in 1990 the Ciry changed its method of accounting for street improvement aid in the Capital Projects Municipal State Aid for Construction Fund. 1 April 19, 1991 Member w�� :::International City of Brooklyn Center, Minnesota 1 GENERAL PURPOSE FINANCIAL STATEMENTS The general purpose financial statements are intended to provide a financial overview of municipal operations. These reports are at 1 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. i I 1 -15- City of Brooklyn Center EXHIBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December 31, 1990 Proprietary Fiduciary Totals Governmental Fund Types Fund Type Fund Type Account Groups (Memorandum Onl» Special Debt Capital General General Long- December 31, General Revenue Service Proiects Enterprise A enc Fixed Assets Term Debt 1890 1989 ASSETS Cash, caeh equivalents and temporarycash investments (Notes 2& 3) a8,141,568 51,869,987 $4,590,228 57.187.870 $4,782,594 $24,372,047 525,134,149 Receivables: Accounts 32,932 5,358 537,214 575,504 500,088 Delinquent Taxes (Note ti) 196,530 9,289 15,298 221,097 101,494 Special asaessments: i Deferred 23,139 973,140 1,488,389 94,568 2,577,218 1,980,140 I Delinquent 1,573 21,402 10,295 3,810 38,880 27,975 Due from other iunds (Note 12) 106,109 50,000 158,109 140,381 I Due from other governments 22,482 108,109 1,833,835 129,137 1,891,563 2,391,935 Inventoriesandsupplies(Note1G) 327,197 327,197 288,863 Prepaid expenaes 107,942 107,942 102,250 Intertund advances (Note 12) 105,074 1,928,220 2,031,294 2,048,3� Restricted investments (Note 6) 4,123,510 4,123,510 4,125,285 Investmente for deferred compensation plan at market (Note 14) 51,793.008 1,793,008 1,Q02,255 I Property, plant and equipment (Note 4) 30,638,272 513,831,647 44,467,919 38,750,998 Less accumulated depreciation (5,806,038) (5,808,038) (5,279,795) I Amount available in Debt Service Funds 54,588,753 4,588,753 4,081,862 Amount to be provided fw General Long- Term Debt 2,9@6,247 2,988,247 4,003,338 i Total Assets s6,498,586 $1,921,544 $5,600,068 512,294.389 534,936,008 a1,793,006 513,831,647 $7,555,000 584,430,248 s79,997,385 I szxoeeesa smaee=se x=cee==x ee=eeeea xae=asasx aaeoe�ees pS��S�35 ��3�SS�S ��5'�m5� �93i'iS�� S�SS��i! i II i City of Brooklyn Center EXHIBIT 1 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued from prior page) December 31, 1990 Proprietary Fiduciary Totals Governmental Fund Types Fund Type Fund Types Account Groups (Memorandum Oniy) Special Debt Capital General GeneralLong- December3l, LIABILITIES. EQUITY AND OTHER CREDITS Generai Revenue Service Projects Enterprise Agency Fixed Assets Term Debt 1990 1989 Liabilities Accounts payabie $352,711 $240,138 $1,475 $187,426 $359,370 $1,141,120 $731,925 Due to other funds (Note 12) 106,109 50,000 158,109 140,381 Accrued salaries and wages 259,757 2,237 261,994 195,838 Accrued vacation sick pay (Notes iJ 8� 17) 488,821 29,554 518,375 471,402 Temporary improvement notes (Note 3) 6,832,000 1,616,658 8,000 8,458,658 4,037,588 Deposits payable 29,976 29,976 Deferred revenue 187,271 30,143 1,009,840 3,130,499 4,357,753 2,003,372 Interfund advances 698,143 1,333,151 2,031,294 2,048,389 Revenue bonds payable (Notes 5& 6) 90,000 90,000 135,000 Genera) obligation bonds payable (Note 5) $950,000 950.000 1,130,000 Special assessment bonds payable (Note 5) 745,000 745,000 970,000 Tax increment bonds payable (Note 5) 5,860,000 5,860,000 5,985,000 Deferred compe�sation funds held for participants (Note 14) $1,793,006 1,793,006 1,602,255 Total Liabilities 1,288,560 7,906,533 1,011,315 4,934,583 1,902,288 1,793.006 7,555,000 28,391.285 19,451,110 Eauitv and Other Credits J Contributed capital (Note 8) 22,008,677 22,008,877 11,308,292 Invested in general fixed assets 513,831,647 13,831,847 19,530,328 Retained earnings: Reserved: Debt retirement (Note 6) 123,510 123,510 125,285 Special assessments 98,178 98,178 93,544 Plant expansion (Note 6) 4,000,000 4,000,000 4,000,000 Unreserved 6,803,355 8,803,355 6,308,158 Fund Balances: Reserved: Imentories 0 32,599 Debt service 4,588,753 4,588,753 4,081,862 Unexpended appropriations 876,925 678,925 1,585,829 State approved projects 0 2,049,983 Interfund loans 105,074 1,976,220 2,081,294 2,098,369 Unreserved: Designated: Working capital 4,778,969 4,778,969 4,803,735 Unexpended appropriations 325,983 325,983 493,046 Undesignated (5,984,989) 4,706,661 (1,278,328) 4,035,465 Total Equitv and Other Credite 5,210,026 (5,984,989) 4,588,753 7,359,808 33,033,720 13,831,647 58,038,963 60,546,255 TOTALLIABILITIES,EQUITY&OTHERCREDITS $6,498,586 $1,921,544 $5,600,068 $12,294,389 $34,936,008 $1,793,006 $13,831,647 $7,555,000 $84,430,248 $79,997,365 (See notes to financial statements) City of Brooklyn Center EXHIBIT 2 All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 1990 Totals Special Debt Capital (Memora�dum Oniy) Revenues General Revenue Service Proiects 1990 1989 Taxes and special assessments $3,854,798 51,083,718 5735.977 $225,951 s5,900,442 55,348,888 Licenses and permits 297,495 297,495 365,247 Intergovernmental 3,201,888 172,232 74,771 1,474,824 4,923,715 4,692,363 Charges for services 1,235,795 87,896 1,323,691 1,197,425 Court fines 215,804 215,804 278,812 Investmentearnings 357,526 135,143 320,833 732,022 1,545,524 1,618,300 Miscellaneous 86,097 27,005 42,3B7 155,469 469,129 Total Revenues 9,249,403 1,505,992 1,131,581 2,475,164 14,362,140 13,968,164 Exoenditures Current: General government 1,823,298 189,837 2,013,135 1,798,180 Public safety 3,474,108 3,474,108 3,103,222 Public works 1,929,950 1,929,950 1,754,800 Communityhealthservices 114,633 114,633 81,043 Parksandrecreation 1,842,294 104,859 1,947,153 1,891,995 Economic development 189,942 5,281,126 5,431,068 5,590,009 Non-departmental 396,550 396,550 347,380 Capital outlay 3,805,644 3,805,644 951,099 Debt service: Principal retirement 530,000 530,000 635,000 Interest and fiscal charges 591.039 149,798 740,837 714,211 Total Exoenditures 9,750,775 5,555,822 1,121,039 3,955,442 20,383,078 16,866,939 Excess/Deficiencv(-1 of Revenues Over Expenditures (501,372) (4,049,830) 10,542 (1,480,278) (6,020,938) (2,898,775) Other Financina Sources or Uses(-1 Operating transfers in 174,925 294,541 496,549 1,942,514 2,908,529 1,081,578 Operatingtransfersout (1,154,241) (2,073,988) (3,228,229) (946,576) Total Other Financinp Sources or Uses(-1 174,925 (859,700) 498,545 (131,474) (3/9,700) 135,000 Excess or Deficiencv(-) of Revenues and Other Sources Over Exoenditures and Other Uses Before Cumulative Effect of Accountin� Chanae (328,44� (4,909,530) 507,091 (1,811,752) (6,340,638) (2,763,775) Cumulative Effect of Accounting Change (Notei� (1,633,835) (1,633,835) (341,961) Excess or DeficiencY(-) of Revenues and Other Sources Over Exoenditures and Other Uses and Cumulative Effect of Accountina Chanae (328,44� (4,909,530) 507,091 (3,245,58� (7,974,473) (3,105,736) Fund Balances Januarv 1 5,569,072 (1,075,459) 4,081,662 10,605,393 19,180,668 22,293,778 Decrease in reserve for inventories (32,599) (32,599) (7,374) Fund Balances December 31 $5,210,026 ($5,984,989) 54,588,753 $7,359,808 $11,173,596 $19,180,668 ===:z��= ===�:s=:s (See notes to financiai statements) -18- City of Brooklyn Center EXHIBIT 3 General and Special Revenue Funde COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1990 General Fund Special Revenue Funds Actual Ove� Actual Over Under(-) Under(-) Budpet Actual Budpet Budpet Actual Budpet Revenues Propertytaxes 54.059.392 53,854.798 (s204.594) 51.214.200 51,083.716 ($130.484) Licenses and permits 306,775 297,495 (9,280) Intergovernmental 3,300,345 3,201,888 (98,45� 188,500 172,232 (16.268) Charge for services 1,274,924 1,235,795 (39,129) 74,000 87,898 13,896 Court fines 287,000 215,804 (51,196) Investmentearnings 300,000 357,526 57,526 127,500 135,143 7,643 Miscellaneous 55,431 86,097 30,666 354,614 27,005 (327,609) Total Revenues 9,563,867 9,249,403 (314,464) 1,958,814 1,505,992 (452,822) F�coenditures CurrenC General government 1,947,593 1,823,298 (124,295) 180,000 189,837 9,837 Public safety 3,514,840 3,474,108 (40,732) Public worke 2,068,953 1,929,950 (139,003) Community health services 129,751 114,633 (15,118) Parks and recreation 1,902,444 1,842,294 (60,150) 85,000 104,859 19,859 Economic development 168,000 189.942 1,942 4,561,864 5,261,128 699,262 Non-departmental 490,731 396,550 (94,181) Total Expenditures 10,222,312 9,750,775 (471,53� 4,826,864 5,555,822 728.958 Excess or Deficiencv(-1 of Revenues Over Exnenditures (658,445) (501.372) 157,073 (2,868,050) (4,049,830) (1,181,780) Other Financins� Sources or Uses(-) Operating transfers in 175,024 174,925 (99) 302,700 294,541 (8,159) Operating transfers out (818,700) (1,154,241) (335,541) Total Other Financinp Sources or Uses(-) 175,024 174,925 (99) (576,000) (859,700) (343,700) Excess or Deficiencv(-1 of Revenues and Other Sources Over Exaenditures and Other Uses (483,421) (326,44� 156,974 (3,384,050) (4,909,530) (1,525,480) Fund Balances Januarv 1 5,569,072 5,569,072 (1,075,459) (1,075,459) Decrease in reserve for inventories (32,599) (32,599) Fund Balances December 31 $5,085,651 $5,210,026 $124,375 ($4,459,509) ($5,984,989) ($1,525,480) i _________________z== (See notes to financial statements) -19- EXHIBIT 4 City of Brooklyn Center Proprietary Fund Type COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1990 Enterprise Funds O�eratina Revenues 1990 1989 Sales and user fees 5 408 325 4 815 914 Cost of sales 1,891,899 1,871,551 Total O�eratin4 Revenues 3,516,426 2,944,363 Operatinq Exp enses Personal services 712,970 675,710 Supplies 178,070 208,354 Other services 2,135,359 1,424,055 Insurance 47,650 34,091 Utilities 276,047 184,043 Rent 316,041 276,234 Depreciation 532,704 385,995 Total Oneratinp Ex�enses 3,188,482 O�eratina Income or Loss(-1 (682,415) (244,119) Non-Oneratina Revenues or Ex�enses Investment earnings 737,878 720,753 Special assessments 25,530 21,930 Intergovernmental revenue 40,877 90,431 Other revenue 20,047 4,289 Interest and fiscal agent fees (90,931 91,846 Non-Operatina Totals 733,401 745,557 Income Before Oneratinq Transfers 50,986 501,438 Operating Transfers In 429,700 Operating Transfers Out(-) (110,000) (135,000) Net Income 370,686 366,438 De�reciation on contributed assets that reduces contributed canital 127,390 Retained Earnin4s Januarv 1 10,526,967 10,160,529 Retained Earnin s December 31 11 25 043 10 526 967 9 �0 (See notes to financial statements) -20- City of Brooklyn Center EXHIBIT 5 Proprietary Fund Type COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 1990 Enterprise Funds Cash flows from operatinp activities 1990 Operating income(loss) ($682,415) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating actvities: Depreciation 532,704 Increase (decrease) in assets and liabilities: Accounts receivable 9,117 Inventories (72,933) Prepaid expenses (5,692) Accounts payable 161,809 Accrued salaries and leave (20,062) Deposits payable 29,976 Total adiustments 634,919 II Net cash provided bv lused forl oueratina activities (47,496) Cash flows f�om noncapital financina activities: Net borrowings(repayments) under revolving loan arrangement (63,775) Interest paid on revolving loan (85,506) Other non-operating income 45,577 Operating grants received 40,877 Operating transfers in 429,700 Operating transfers out (110,000) Net cash �rovided bv noncaoital financina activities 256,873 Cash flows from canital and related financina activities: Capital contributions in aid of construction 10,827,775 Acquisition and construction of capital assets (11,423,582) Principal paid on revenue bonds (45,000) Interest paid on revenue bonds (5,425) Proceeds from sale of equipment 1,515 Net cash used for caQital and related financina activities (644,717) Cash flows from investinq activities: Interest on investments 737,878 Change in restricted assets 1,755 Net cash qrovided bv investina activities 739,633 Net increase d r in h n h ivalents 304 293 ec ease) cas a d cas equ Cash, cash eauivalents and temqorarv cash investments at beainninq of vear 4,478,30i Cash, cash equivalents and temporary cash investments at end of year $4,782,594 (See notes to financial statements) -21- Citv of Brooklvn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1990 Note 1: Summarv of Sianificant Accountina Policies A. Renortina Entitv The City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight res onsibilit Oversi ht s o s' 't includes such as ects p y g re p n ibili y p as appointment of governing body members, budget review, approval of property tax levies, outstanding debt secured by City full faith and credit or revenues and responsibility for funding deficits. As a result of applying the entity definition criteria of the Governmental Accounting Standards Board, certain organizations have been included or excluded from the City's financial statements, as follows: Included: Housing and Redevelopment Authorit (HRA) and Economic Y Development Authority in and for the City of Brooklyn Center (EDA). HRA and EDA were created by the City to provide housing and redevelopment assistance to Brooklyn Center citizens. They provide this assistance through the administration of various programs. Inasmuch as their governing board is appointed by the City Council, the Council reviews and approves tax levies, the City provides major community development financing for their activities, and the City Manager is the Executive Director, they are considered to be component units for the City. Excluded: The Brooklyn Center Fire Department Relief Association. The Association is organized as a non-profit organization by its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the organization. All Funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the association. Tax levies, if necessary, are determined by the association and are only reviewed by the City, and the association pays benefits directly to its members. Because the association is able to fund its programs independently of the City, it is excluded from the reporting entity. State Aid insurance -22- Note 1: Summarv of Sianificant Accountina Policies (continued) A. Reportina Entitv (continued) premium tax in the amount of $85,647 and ad valorem taxes in the amount of $24, 621 were receipted by the City and disbursed to the Association during 1990. Independent School District No. 286 (Earle Brown) Independent School District No. 279 (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 287 (Suburban Hennepin County Area Voca- tional Institute) These Districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and issue their own financial reports. B. Fund Accountina The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund types and 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 Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. -23- Note 1: Summarv of Sicrnificant Accountinct Policies (continued) B. Fund Accountinq (continued) 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. FIDUCIARY FUNDS Agency Funds Agency Funds are used to account for assets he ld b the Cit y y 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. -24- Note 1: Summarv of Sianificant Accountina Policies (continued) C. Fixed Assets and Lona-Term Liabilities (continued) The fixed assets of the proprietary funds are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Water Sewer Mains Lines 100 years Buildings and Structures 20-40 years Water Wells and Storage Tanks 15-50 years Sewer Lift Stations 15-40 years Machinery and Equipment 5-20 years Furniture and Fixtures 5-20 years Public Utility assets financed by special assessments are recorded as contributions. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long Term Debt Account Group, not in the governmental funds. 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. I I 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. i 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. -25- I Note 1: Summarv of Sianificant Accountina Policies (continued) D. Basis of Accountina (continued) Al1 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. E. Budaets and Budaetarv Accountin� The City follows these procedures establishing the budgetary data reflected in the financial statements: 1. By the first regular Council meeting 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 owner by the second week of 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 not later than the third week of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within any fund. 6. Supplemental appropriations may be made during the year 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 the General Fund and Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. _26_ i Note 1: Summarv of Sianificant Accountina Policies (continued) E. Budaets and Budaetarv Accountinq (continued) 9. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. 10. Budgetary control is maintained at the expenditure category level within each activity. Budgetary control is maintained in compliance with City Council's directions. City departments are not allowed to exceed budgetary expenditure totals for the department. 11. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations. F. Investments Cash balances from all funds are combined and invested to the extent 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. Temporary cash investments are stated at cost which approximates market. All highly liquid unrestricted investments with a maturity of three months or less when purchased are considered to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have maturities of 90 days or less. Therefore, the entire balance in such fund types is considered to be cash equivalents. G. Inventorv Inventories in the proprietary funds are valued at cost, using the first-in/first-out (FIFO) method. The costs of governmental fund type supplies are recorded as expenditures when purchased. H. 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. -27- Note 1: Summarv of Sianificant Accountina Policies (continued) I. Probertv 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 June and November. 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. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. Minnesota cities operate under a levy limitation law which allows an increase in the tax levy each year equal to the Implicit Price Deflator increase or 3�, whichever is greater, further indexed by the percentage increase in households or population, whichever is greater. Levies for bonded indebtedness are not limited by this law. J. Accumulated Unpaid Vacation and Sick Pav The City pays employees severance pay upon termination of employment based on accumulated sick leave and accrued vacation. Such pay is accrued as an expense as it is earned. -28- i Note 2: Cash and Investments A. Denosits 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. 1 At December 31, 1990 the carrying amount of the City's demand deposits was $154,108 and the bank balance was $221,974. Of the bank balance, $130,545 was covered by federal depository insurance (risk category A) and the remainder by collateral held in the pledging bank's trust department in the City's name (risk category B). Risk Cateaorv (A) Insured or collateralized by securities'held by the City or its agent in the City's name {B) Collateralized with securities held by the pledging institution's trust department in the City's name (C) Uncollateralized or collateralized with securities held by the pledging institution, but not in the City's name B. Investments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: (a) Direct obligations or obligations guaranteed by the United State or its agencies. 1 1 -29- 1 Note 2: Cash and Investments (continued) B. Investments (continued) (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) 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 of 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 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, 1990 Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value 7 U.S. Governments $75,000 5,000 $70,641 Federal Agencies 13,845,000 13,845,000 13,939,683 Commercial Paper 5,300,000 5,300,000 5,244,780 Repurchase Agreements 320,000 320,000 323,200 Totallnvestments $19,540,000 $0 $0 $19,540,000 $19,578,304 -30- r NOTE 2: Cash and Investments (continued) SUMMARY OF CASH AND TEMPORARY CASH INVESTMENTS Balances at December 31, 1990 Cash in Banks: Marquette Bank Brookdale Brooklyn Center, Minnesota $153,013 First National Bank of Minneapolis, Minnesota 1,095 Total Cash in Bank $154,108 Temaorarv Cash Investments: Carrying Investment Tvpe Interest Rate MaturitK Amount Commercial Paper 7.83-8.675% 1991 $5,300,000 U.S. Treasury bond 4.25�/0 1992 75,000 Federal Home Loan Bank bonds 7.95-9.95% 1991-1993 5,600,000 Federal National Mortgage I Association bonds 7.05-12.00% 1991-1992 4,020,000 Federal Farm Credit Bank bonds 8.05-8.70% 1991-1995 4,225,000 Repurchase Agreements 6.70% 1991 320,000 Total Tem orar Cash Investments $19,540,000 p Y Total Cash and Investments $19,694,108 Accrued interest on investments 362,681 Change funds 5,410 Performance Deposits (23,300) Temporary Improvement Notes (Note 3) 8,456,658 Total Cash, Cash Equivalents, Temporary Cash Investments, and Restricted Investments $28,495,557 r Other Assets Investment Pools Deferred Compensation Plan $1,793,006 -31- Note 3: Temborarv Imnrovement Notes Temporary Improvement Notes represent interfund borrowing to provide interim financing for construction projects or capital outlay expenditures. Such loans bear interest at 10 percent and totaled $8,456,658 and $4,037,568 at December 31, 1990 and 1989, respectively. For collection purposes, all of these notes are considered current, since they are payable on demand. See Note 19 for further details. Individual fund note balances at December 31, 1990 were as follows: Interfund Interfund Receivable Pavable General $1,925,238 E. Brown T.I.F. Distr $6,832,000 Public Employees Retirement 281,924 Park Bonds of 1980 140,912 Tax Increment Bonds of 1983 212,922 Tax Increment Bonds of 1985 147,177 Improvement Bonds of 1976 612,325 Refunding Bonds of 1987 327,733 Capital Improvements Fund 1,358,199 M.S.A. Construction Fund 704,739 Spec Assess Constr Fund 1,616,658 Municipal Liquor Fund 8,000 Public Utilities Fund 2,745,489 TOTALS $8,456,658 $8,456,658 -32- Note 4: Fixed Assets Changes in the General Fixed Assets account group during 1990 were as follows: Balance Transfers(1) Balance Jan. 1, and Dec. 31, 1990 Additions Reclassess Disnosals 1990 Land $2,893,399 ($732,338) $2,161,061 Buildings Improvements 9,315,776 $37,638 (4,833,211) $55,941 4,464,262 Park Improvements 3,056,305 (201,341) 32,971 2,821,993 Furniture Fixtures 700,163 187,357 (6,199) 146,008 735,313 Departmental Equipment 3,564,685 284,763 200,430 3,649,018 TOTAL GENERAL FIXED ASSETS $19,530,328 $509,758 ($5,773,089) $435,350 $13,831,647 Changes in the Liquor Fund Fixed Assets during 1990 were as follows: Balance Balance Jan. 1, Dec. 31, 1990 Additions Disqosals 1990 Land $107,405 $107,405 Land Improvements 4,228 4,228 Buildings 8 Improvements 292,184 $2,669 294,853 Leasehold Improvements 27,834 27,834 Furniture Fixtures 120,612 120,612 Departmental Equipment 9,128 511 9,639 TOTAL LIQUOR $561,391 $3,180 $0 $564,571 Changes in the Golf Course Fixed Assets during 1990 were as follows: Balance Balance Jan. 1, Dec. 31, 1990 Additions Disposals 1990 Land $1,391,711 $1,391,711 Land Improvements 24,979 $5,749 30,728 Buildings Improvements 303,321 303,321 Furniture 8 Fixtures 17,299 412 17,711 Departmental Equipment 86,766 3,888 90,654 TOTAL GOLF COURSE $1,824,Q76 $10,049 $1,834,125 -33- I Note 4: Fixed Assets continued Changes in the Utility Fund Fixed Assets during 1990 were as follows: Balance Balance Jan. 1, Dec. 31, 1990 Additions Dis�osals 1990 WATER DEPARTMENT Land $23,938 $23,938 Land Improvements 2,600 2,600 Buildings Improvements 3,387,906 $274,954 3,662,860 Mains and Lines 7,137,693 7,137,693 Machinery Equipment 128,789 15,929 $3,989 140,729 TOTAL WATER DEPT $10�6$0,926 $290,883 $3,989 $10 SEWER DEPARTMENT Land $3,388 $3,388 Buildings Improvements 1,027,064 $273,447 1,300,511 Mains and Lines 4,995,034 4,995,034 Machinery Equipment 128,789 15,929 $3,989 140,729 TOTAL SEWER DEPT $6,154,275 $289,376 $3,989 $6,439,662 TOTAL UTILITY $16,835,201 $580,259 $7-978 $17,407,482 Changes in the Earle Brown Heritage Center Fixed Assets during 1990 were as follows: Balance Transfered Balance Jan. 1, From Dec. 31, 1990 Additions G.F.A.� 1990 Land $925,000 $925,000 Buildings Improvements $4,210,899 4,848,089 9,058,988 Furniture Fixtures 795,881 795,881 Departmental Equipment 50,225 50,225 TOTAL E.B.H.C. $5,057,005 $5,773,089 $10,830,094 (1) $5,773,089 in assets were transfered to the Earle Brown Heritage Center enterprise fund upon its opening in April 1990. Some other assets were reclassified when an inventory was taken. -34- i Note 5: Lona-Term Debt The following is a summary of bond transactions of the City for the year ended December 31, 1990: �I General G.O. Tax Water Obligation Increment Improvement Revenue Bonds Bonds Bonds Bonds Total Bonds payable January 1 $1,130,000 $5,985,000 $970,000 $135,000 $8,220,000 Bondsissed Bonds retired 180,000 125,000 225,000 45,000 575,000 Bonds payable December 31 $950,000 $5,860,000 $745,000 $90,000 $7,645,000 General Obliaation Bonds General Obligation Bonds are recorded in the General Long-Term Debt Account Group and are backed by the full faith and credit of the City. Tax Increment Bonds I Tax Increment Bonds are recorded in the General Long-Term Debt Account Group and are backed by the full faith and credit of the City. They will be repaid from incremental tax increases on the property within certain development districts. Improvement Bonds These bonds are recorded as a liability in the General Long-Term Debt Account Group and are payable primarily from special assessments levied and collected for local improvements. The City has a contingent liability relating to a pledge of full faith and credit on the Special Assessment Bonds. The general credit of the City is obligated only to the extent that liens foreclosed against properties involved in the special assessment districts are insufficient to retire outstanding bonds. -35- Note 5: Lona-Term Debt (continuedl Long-term debt maturities (including interest of $4,050,551) are as follows: General G.O. Tax Water Obligation Increment Improvement Revenue Bonds Bonds Bonds Bonds Totat 1991 $398,445 $592,650 $246,775 $48,510 $1,286,380 1992 334,810 645,488 168,260 46,755 1,195,313 1993 321,780 669,282 127,158 1,118,220 1994 694,685 111,912 806,597 1995 725,957 92,131 818,0$8 1996 on 6-376,303 94,650 6,470,953 $1,055,035 $9,704,365 $840,886 $95,265 $11,695,551 Long-term debt obligations outstanding at year-end are summarized as follows: Bond Payment Issue Maturity Authorized Rates �i6 Dates Date Date And Issued Retired Outstandinq General Obligation Bonds G.O. State-Aid Street Bonds 6.75 3-01 9-01 09-01-70 03-01-91 $1,050,000 $990,000 $60,000 1980 Park Improvement Bonds 7.4-7.6 2-01 8-01 09-01-80 02-01-93 1,500,000 610,000 890,000 Total $2,550,000 $1,600,000 $950,000 Tax Increment Bonds a 1983 G.O. Tax Incr Bonds 7.7-9.0 2-01 8-01 11-01-83 02-01-97 $930,000 $270,000 $660,000 1985 G.O. Tax Incr Bonds 6.5-8.1 2-01 8-01 12-01-85 02-01-03 5,250,000 50,000 5,200,000 Total $6,180,000 $320,000 $5,860,000 =====ag Improvement Bonds 1976 Improvement Bonds 5.4 2-01 8-01 11-01-76 02-01-91 $980,000 $920,000 $60,000 1987 Refunding Bonds 4.5-5.5 2-01 8-01 04-01-87 02-01-97 1,200,000 515,000 685,000 Total $2,180,000 $1,435,000 $745,000 Water Revenue Revenue Bonds of1963 3.9 1-01 7-01 07-01-63 01-01-93 $1-000�000 $910_000 $90,000 On April 1, 1987, the City issued $1,200,000 in general obligation bonds with an average interest rate of 5.06 percent to advance refund $1,825,000 of outstanding 19821mprovement Bonds with an average rate of 9.02 percent. The net proceeds of $1,170,072, plus an additional $867,926 of 1982 Improvement Bonds sinking funds were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1982 Improvement Bonds. As a result, the 1982 Improvement Bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. At December 31, 1990, $1,225,000 of such bonds remain outstanding. -36- r Note 6: Public Utilities Fund Public Utilities Revenue bonds were issued during 1963 to finance an addition to the water works system. These bonds, together with related interest and service charges, are payable solely from the operations of the Public Utilities Fund and are not a general obligation of the City. The resolution authorizing and directing the issuance of these bonds contain covenants and restrictions enacted for the purpose of protecting the bondholders' interest. Paragraph 8 of the resolution provides for the segregation of assets and the appropriation of retained earnings for debt retirement purposes and defines the manner of accounting for the activities of the Public Utilities Fund. As required by Paragraph l0e of the issuing resolution, an analysis of each account balance appears as follows: Debt Retirement Account Accumulated amounts set aside to meet 1991 requirements' for interest and principal: Investments with accrued interest 48,510 Reserve account investments ___75,000 Total Debt Retirement Account: 123,510 All bonds are sub'ect to redem tion call on an interest J P Y payment date in inverse-numerical order at par and accrued interest. Temporarv Investments r Investments and Retained Earnings in the amount of $4,000,000 have been restricted for the possible future expansion of Water and Sewer facilities. i 1 1 1 1 1 -37- r Note 7: Seament Information E Brown Enterprise Funds: Municipal Golf Heritage Recycling Pubiic Liquor Course Center 8� Refuse Utilities I Fund Fund Fund Fund Fund Total Operating Revenues $2,455,551 $272,254 $347,866 $103,548 $2,229,106 $5,408,325 Depreciation Expense 26,974 23,351 127,400 354,979 532,704 Operatinglncome(Loss) 101,163 62,245 (552,490) (9,738) (283,595) (682,415) Operating Transfers In 429,700 429,700 Operating Transfers (Out) (110,000) (110,000) Net Income (Loss) (16,308) 9,869 (127,372) 28,229 476,268 370,686 Current Capital Contributions 10,827,775 10,827,775 Property, Plant Equipmeni: Additions 3,180 10,049 10,830,094 580,259 11,423,582 Deletions 7,978 7,978 Net Working Capital 167,674 55 (2,291) 47,589 5,228,842 5,441,869 Total Assets 685 418 1 821 579 10 824 007 75 900 21 529 104 34 936 008 Bonds and Other Long-Term Liabiiities Payabte from Operating Revenues 216,895 1,100,000 45,000 1,361,895 Total Equity $319,260 $668,950 $10,700,403 $47,589 $21,297,518 $33,033,720 r Note 8: Contributed Ca�ital Enterprise funds have received contributed capital from several sources. The fixed assets acquired in this fashion have been depreciated along with other fund assets. For the Golf Course and Public Utilities funds, the contributions under Fund Equity on the balance sheet have not been reduced for the depreciation. However, for the Earle Brown Heritage Center Fund, contributions under fund equity on the balance sheet have been reduced for deprectiation. During the year contributions changed by the following amounts: E Brown Golf Heritage Public Course Center Utitities SOURCES AND USES Fund Fund Fund Capital Improvements Fund $10,827,775 Depreciation charged to contributions (127,390) Total Change 0 10,700,385 0 Contributions Januar 1 1990 692 206 0 10 616 086 y Contributions, December 31, 1990 $692,206 $10,700,385 $10,616,086 -38- NOTE 9: PENSION PLANS: PUBLIC EMPLOYEES 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 classified as a defined benefit multiple employer cost sharing plans. Disclosures relating to this plan are as follows: A. Plan Description All full-time and certain part-time employees of the City of Brooklyn Center are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost sharing multiple employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. Al1 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, 1990, was $3,485,993 and $1,634,666, respectively; the City's total payroll was $5,845,630. 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 five 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 10 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 2.5 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 service equal 90. 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 -39- A. Plan Descrintion (continued) leave their contributions in the fund upon termination of public service, in order to gualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. B. Fundina Status and Proaress r 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 among employers PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations as of June 30, 1990, are shown below (in millions): PERF PEPFF Total pension benefit obligation $4,090 657 Net assets available for benefits, at cost (market value for PERF 3,547; PEPFF 803) $3,250 739 Unfunded (assets in excess of) pension benefit obligation 840 (82) The measurement of the ension benefit obli ation is based on an P g actuarial valuation as of June 30, 1990. Net assets available to pay pension benefits were valued as of June 30, 1990. C. Contributions Reauired and Contributions Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by state statutes. According to Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a"required" -40- C. Contributions Reauired and Contributions Made (continued) contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: Statutorv Rates Reauired Employee �lo�er Rates Public Employees Retirement Fund: Basic Plan and Coordinated Plan 4.44� 4.81� 10.04� Police Fire Fund 8.00� 12.00� 17.56� Total contributions made by the City during fiscal year 1990 were: Percentaae of Contribution Covered Pavroll Em�lovees E�lover �lovees �lover Public Employees Retirement Fund: Basic Plan 18,179 23,702 8.23� 10.73� Coordinated Plan 137,901 146,549 4.23� 4.48� Police Fire Fund 130,693 196,122 8.00$ 12.00� TOTALS $286,773 $366,373 The City's contribution for the year ended June 30, 1990, to the Public Employees Retirement Fund represented approximately .18 percent of total contributions required of all participating entities. For Public Employees Police and Fire Fund, contributions for the year ended June 30, 1990, represented .8 percent of total contributions required of all participating entities. D. Trend Information Ten-year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1990. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Chanaes in Actuarial Methods and Benefit Provisions For the fiscal year 1990 actuarial valuation, the PERA Board of Trustees approved the use of new withdrawal rates. The change was made to reduce, if not eliminate, the series of large, annually recurring actuarial losses in the past few years due to lower than expected terminations. With the adoption of new withdrawal rates, the pension benefit obligation increased $59,942,000 in the PERF and &6,978,000 in the PEPFF. -41- Note 10: Pension Plan Brooklvn Center Fire Denartment Relief Association A. Plan Descri t' p ion 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. The plan's baseline benefit is $450 per month after 20 years of service and attaining the age 50. There are additional benefits for service through 30 years with a maximum of $675 per month. 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 3000 times the number of years of service, with a maximum of 30 years. Spouse's, children's and funeral benefits are also rovided. These benefit rovisions and all other re irements P P are consistent with s enabling state tatutes. 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 I 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 fundin method used to determine contributions to 9 the plan, discussed in "C" below. The pension benefit obligation was determined as part of an actuarial valuation at December 31, 1990. 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. -42- I Note 10: Pension Plan (continued) B. Fundina Status and Proctress (continued) An actuarial update to the pension obligation is performed annually. On December 31, 1990, the unfunded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1,282,944 Current Employees Employer-financed vested 1,007,861 Employer-financed nonvested 263,902 Total pension benefit obligation 2,554,707 Net assets available for benefits (at cost, market equals $2,382,836) 2 409,110 Unfunded pension benefit obligation 145,597 I No chan es in a' g actu rial assumption for benefit provisions that would significantly affect the valuation of the pension benefit obligation occurred during 1990. C. Contributions Reauired and Contributions 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. The unfunded actuarial accrued liability is to be funded by December 31, 1999. The minimum tax levy obligation is the �I financial requirement for the year less anticipated state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The funding strategy for normal cost and the unfunded actuarial accrued liability should provide sufficient resources to pay plan benefits on a timely basis. Total contributions to the plan in 1990 amounted to $110,268, of which $24,621 was levied by the City of Brooklyn Center and $85,647 was from the State of Minnesota. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of December 31, 1990. The contributions represent funding for normal cost of $62,747 and the amortization of the unfunded actuarial accrued liability of $42,674. -43- Note 10: Pension Plan (continued) C. Contributions Recruired and Contributions Made (continued) 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 1990 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. 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, 1990. Three year trend information for the Association is as follows: 1990 1989 1988 Available assets as a percentage of benefit obligation 94� 93� 87°s Unfunded ension benefit P obligation as a percentage of covered payroll *not *not *not applicable applicable applicable City's contribution** as a percentage of covered payroll *not *not *not 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. -44- Note 11: Individual Fund Disclosures Deficit fund balances exist in the following funds: Special Revenue Funds: Earle Brown Tax Increment Financing District: Unreserved deficit fund balance $7,560,062 This deficit is being funded in part by the sale of $6, 050, 000 in tax increment bonds, which took place on March 1, 1991. The balance of the deficit will continue to be funded by internal borrowing, which will be repaid from future surplus tax increments. Capital Project Funds: Special Assessment Construction: Unreserved deficit fund balance $1,172,686 This deficit is being funded through internal borrowing. Bonds may be sold in the future if the balances of special assessments receivable becomes large enough to justify an issue. Enterprise Funds: Golf Course: Unreserved deficit retained earnings $23,256 This deficit is being funded through internal borrowing. It is expected that future profits will cover the deficit. -45- Note 12: Interfund Receivables and Pavables Individual interfund receivable and payable balances at December 31, 1990, were as follows: Due From/To Other Funds: Receivable fund Pavable fund Amount Economic Development Comm. Dev. Authority Block Grant $106,109 Capital Improvement Golf Course 50,000 $156,109 Interfund Loans From/To Other Funds: Receivab le fund Pavable fund Amount General Fund Econ. Dev. Auth. 105,074 Municipal State Aid for Construction Econ. Dev. Auth. 593,069 Capital Improvement Liquor Fund 233,151 Capital Improvement Golf Course 1"100,000 $2,031,294 Interfund Loan Terms: The loans a able b the Economic Develo ment Authorit are P Y Y P Y interest free and have no set repayment schedule. The loan payable by the Liquor Fund is paying interest at the rate of 8.5� and is repaying the loan principal over a period extending through the year 2000. The loan payable by the Golf Course Fund is paying interest at the rate of 5� and is repaying the loan principal over a period extending through the year 2011. Note 13: 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. I -46- 1 Note 14: Deferred Combensation 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. 1 -47- Note 15: Post-Emplovment Health Care Benefits In addition to providing pension benefits, the government provides certain health care insurance benefits for city employees who retire before age 65. Substantially all of the government's employees may be eligible for those benefits from the time they reach normal retirement age until they reach age 65 or become eligible for medicare. This benefit was initiated on April 1, 1986 and will expire on December 31, 1995 unless it is re-enacted by the City Council. The cost of retiree health care premiums actually paid during 1990 was $5,940 for four retired employees. In addition, a liability and an expenditure of $183,897 was recognized for the estimated cost of employees who will be eligible to enter the program on or before December 31, 1995. Note 16: Fund Chanaes The following funds were opened during 1990: Special Revenue: Earle Brown Tax Increment Financing District Enterprise: Earle Brown Heritage Center No funds were closed during 1990. Note 17: Chanae in the Method of Accountina: A. For Street Improvement Aid The Capital Projects Municipal State Aid For Construction Fund has been recording State of Minnesota street improvement aid as revenue in the year the State allocated the funds to the City. However, such funds were not available to the City until an equal amount had been expended by the City on improvements or repairs to specific streets in the City. On December 31, 1990, the City changed its method of accounting for street improvement aid by recognizing the annual allotment as deferred revenue. Thereafter, such amounts will be recognized as revenue in the period in which allowable expenditures are incurred. The new method of accounting for street improvement aid was adopted to properly match the revenue source with the incurred expenditures in the period in which the street improvements are performed. The cumulative effect of the change on the Municipal State Aid For Construction Fund was a charge of $1,633,835 against the deficiency of revenues and other financing sources over expenditures and other financing uses. -48- Note 17: Chanae in the Method of Accountina: (continued) B. For Accrued Vacation and Sick Leave rrior to l�a�, in the Governmental Fund Types, the City accounted for vacation and sick leave by recognizing expenditures when the benefits were paid. The liability for unpaid benefits was accrued in the General Long-Term Debt Account Group. Proprietary funds recorded their benefits on the full accrual basis of accounting. During 1989, the City changed its methad of ting for employee benefits in the Governmental Fund Types by recognizing all vacation and sick leave costs as expenditures when the benefits are earned. The new method of accounting for accrued employee benefits was adopted to recognize the I' full impact of the liability when the benefits are earned, rather than when paid. The cumulative effect of the change on the General Fund was a charge of $341,961 against the excess of revenues over expenditures and other financing sources (uses) in 1989. ote Lease N 18: The City leases space for the operation of one of its three municipal liquor stores, under a five-year lease which expires in 1994. Rental expense under the lease agreement for the years ended December 31, 1990 and 1989 was $36,950 and $28,604, respectively. Future minimum rental payments under I the lease agreement are $24,640 in 1991 through 1994. Note 19: Subseauent Event On March 1, 1991, the City sold $6,050,000 of General Obligation Tax Increment Bonds. All the bonds are general obligations of the City, and have the full faith and credit of the City pledged for their repayment. It is intended that the bonds will be repaid primarily from tax increments collected from the tax increment district. The bonds were issued to repay funds which were borrowed internally from the City for the construction of the Earle Brown Heritage Center. Note 20: Adobtion of New Renortina Standards: Statement of Cash Flows The City has implemented the provisions of Statement No. 9 of the Government Accounting Standards Board, Re�ortina Cash Flows of Pronrietarv and Nonexbendable Trust Funds and Government Entities That Use Probrietarv Fund Accountina. In the past, the Statements of Changes in Financial Position was presented for the Proprietary Fund Types. -49- City of Brooklyn Center, Minnesota 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. 1 -50- City of Brooklyn Center A-1 General Fund BALANCE SHEET December 31, 1990 Totals 1990 1989 ASSETS Cash and investments $4,216,330 $5,360,605 Temporary improvement notes 1,925,238 879,224 Accounts receivable 32,932 28,670 Taxes receivable 196,530 92,533 Due from other governments 22,482 20,906 Inventory of supplies 32,599 Interfund loan-E.D.A. 105,074 105,074 TOTAL ASSETS 6 498 586 6 19 611 $,5 i LIABILITIES AND FUND BAIANCE Liabilities Accounts payable $352,711 $255,312 Accrued salaries payable 259,757 175,028 Accrued vacation and sick pay 488,821 440,359 Deferred revenue 187,271 79,840 Total Liabilities 1,288,560 950,539 Fund Balance Reserved for: Inventories 32,599 Interfund loans 105,074 105,074 Unreserved fund balance Designated: L Working capital 4,778,969 4,803,735 Appropriated to next budget 325,983 493,046 Undesignated 134,618 Total Fund Balance 5,210,026 _5,569,072 TOTAL LIABILITIES AND FUND BALANCE $6,498,586 $6,519,611 -51- City of Brooklyn Center A-2 General Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL Year Ended December 31, 1990 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual Revenues Property taxes $4,059,392 53,854,798 (5204,594) 53,325,101 Licenses and permits 306,775 297,495 (9,280) 365,247 Intergovernmental 3,300,345 3,201,888 (98,457) 3,628,255 Charges for services 1,274,924 1,235,795 (39,129) 1,124,167 Court fines 267,000 215,804 (51,196) 278,812 Investment earnings 300,000 357,526 57,526 360,418 Miscellaneous 55,431 86,097 30,666 64,938 Total Revenues 9,563,867 9,249,403 (314,464) 9,146,938 Expenditures General government 1,947,593 1,823,298 (124,295) 1,793,495 Public safety 3,514,840 3,474,108 (40,732) 3,103,222 Public works 2,068,953 1,929,950 (139,003) 1,754,800 Community services 129,751 114,633 (15,118} 81,043 Parks and recreation 1,902,444 1,842,294 (60,150) 1,814,391 Economic development 168,000 169,942 1,942 168,305 Non-departmental 490,731 396,550 (94,181) 347,315 Total ExDenditures 10,222,312 _9,750,775 __(471,537) _9,062,571 Excess or Deficiencv(-) of I Revenues Over ExDenditures (658,445) (501,372) 157,073 84,367 Other Financina Sources Operating transfers in 175,024 174,925 (99) 176,505 Total Other Financina Sources 175,024 174,925 (99) 176,505 Excess or deficiencvt-) of Revenues and Other Financina Sources Over I Exnenditures Before Cumulative Effect of Accountina Chanae (483,421) (326,447) 156,974 260,872 Cumulative Effect of Acct. Change (341,961) Excess or deficiencv(-) of Revenues and Other FinancinQ Sources Over Ex�enditures and Cumulative Effect of AccountinQ Chanae (483,421) (326,447) 156,974 (81,089) Fund Balance January 1 5,569,072 5,569,072 5,657,535 Decrease in Reserve for Inventory (32,599) (32,599) (7,374) Fund Balance December 31 $5,085,651 $5,210,026 5124,375 55,569,072 -52- S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1990 1990 Actual Over or Under(-) 1989 Budc�et Actual Budc�et Actual Ad Valorem Taxes Property taxes $3,690,392 $3,487,029 ($203,363) $3,119,039 Penalties and interest 15,000 2,089 (12,911) 28,758 Lodging tax 354 000 365 680 11 680 177 304 Total Ad Valorem Taxes 4,059,392 3,854,798 (204,594) 3,325,101 Licenses and Permits Liquor and beer 124,100 121,667 (2,433) 128,575 Building permits 90,000 80,750 (9,250) 121,130 Mechanical permits 21,000 19,369 (1,631) 36,698 Sewer and water permits 2,000 780 (1,220) 1,483 Plumbing permits 7,000 6,942 (58) 10,006 Electrical permits 37 37 69 Garbage licenses 1,400 1,735 335 1,980 Taxicab licenses 1,100 1,590 490 1,230 Mechanicallicenses 3,000 4,168 1,168 4,428 Food licenses 20,500 21,823 1,323 21,931 Service station licenses 1,700 1,653 (47) 1,760 Vehicfe dealer licenses 900 900 0 900 Bowling licenses 700 700 0 460 Cigarette licenses 975 179 (796) 960 Swimming pool licenses 2,800 2,866 66 2,805 Sign permits 2,000 2,068 68 3,202 Rental dwelling permits 15,000 18,613 3,613 12,528 Lodging establishments 900 765 (135) 840 Amusement licenses 5,000 5,230 230 5,280 Dog licenses 5,200 3,677 (1,523) 5,658 Miscellaneous business license 1,500 1,983 483 3,324 Total Licenses and Permits 306,775 297,495 (9,280) 365,247 t -53- S-1 City of Brooklyn Center (Continued next page) General Fund SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1990 1990 Actual Over or Under(-) 1989 Budyet Actual Budc�et Actual lnteraovernmental Federal grants: Miscellaneous grants $5,000 $6,974 $1,974 $5,850 Total Federal Grants 5,000 6,974 1,974 5,850 t State grants: Local government aid 2,060,162 1,954,435 (105,727) 2,657,957 Homestead credit aid 953,640 953,640 0 705,540 Police pension aid 160,000 160,109 109 139,342 Fireman pension aid 87,000 85,647 (1,353) 85,015 Police training 4,500 11,040 6,540 15,264 Miscellaneous grants 30,043 30,043 0 19,287 Total State Grants 3,295,345 3,194,914 (100,431) 3,622,405 Total Interqovernmental Rev. 3,300,345 3,201,888 (98,457) 3,628,255 Charqes for Services Inter-Fund charges Admin.: Public Utility Fund 211,000 206,499 (4,501) 196,810 Liquor Fund 59,000 56,777 (2,223) 51,276 E.D.A. Fund 53,000 52,982 (18) 50,038 Engineering and clerical fees 150,000 155,746 5,746 91,472 General government charges 27,330 28,480 1,150 39,269 Public safety charges 14,000 17,151 3,151 17,414 Recreation fees 760,594 718,160 (42,434) 677,888 Totat Charaes for Services 1,274,924 1,235,795 (39,129 1,124,167 Court Fines Fines 267,000 215,804 (51,196) 278,812 Total Court Fines 267,000 215,804 (51,196) 278,812 -54- S-1 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1990 1990 Actua{ Over or Under(-) 1989 Budqet Actual Budyet Actual Miscellaneous Rent $14,000 $12,000 ($2,000) $12,000 Interest on investments 300,000 357,526 57,526 360,418 Forfeited drug money 30,981 43,769 12,788 24,284 Other 10,450 30,328 19,878 28,654 Total Miscellaneous 355,431 443,623 88,192 425,356 Total Revenue 9,563,867 9,249,403 (314,464) 9,146,938 Other Financinp Sources Operating transfers in: Liquor Fund 110,000 110,000 0 135,000 M.S.A. Fund 65,024 64,925 (99) 21,451 Capital Projects Fund 0 20 054 Total Other Financinq Sources 175,024 174,925 (99) 176,505 Total Revenue and Other Sources $9,738,891 $9,424,328 ($314,563) $9,323,443 -55- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1990 next page) 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual General Government Mayor and Council: Personal services $23,822 $17,417 (56,405) $17,041 Services and other charges 55,302 53,385 (1,917) 72,074 Total Mavor and Council 79,124 70,802 (8,322) 89,115 Charter Commission: Services and other charges 1,500 1,354 (146) 834 Total Charter Commission 1,500 1,354 (146) 834 Administrative Office: Personal services 341,975 340,789 (1,186) 312,423 Services and other charges 43,900 18,082 (25,818) 32,676 Capital outlay 780 516 (264) 5,018 Total Administrative Office 386,655 359,387 (27,268) 350,117 Elections and Voter Registration: Personal services 36,083 31,564 (4,519) 17,746 Supplies 1,350 1,161 (189) 0 I' Services and other charges 5,660 4,328 (1,332) 134 Total Elections 43,093 37,053 (6,040) 17,880 I Assessor's Office: P r e sonal services 184,484 162,939 (21,545) 153,489 Supplies 3,310 2,608 (702) 1,250 Services and other charges 6,032 3,655 (2,377) 4,221 Capital outlay 1,215 368 (847) 603 Total Assessor's Office 195,041 ___169,570 (25,471) 159,563 Finance: Personal services 365,719 339,277 (26,442) 302,147 Supplies 2,350 2,465 115 2,055 Services and other charges 3,260 1,399 (1,861) 1,716 Capital outlay 1,092 Total Finance 376,444 345,654 (30,790) 307,010 Independent Audit: Services and other charges 15,000 15,000 0 14,500 Total IndeDendent Audit 15,000 15,000 0 14,500 I -56- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1990 next page) 1990 Actual Over or Under(-) 1989 Budaet Actual BudQet Actual General Government (continued) Legal: Services and other charges $189,600 $185,993 ($3,607) 5250,175 Total Leaal 189,600 185,993 (3,607) 250,175 Government Buildings: Personal services 197,685 198,649 964 171,815 Supplies 19,975 21,402 1,427 26,405 Services and other charges 143,900 166,473 22,573 165,751 Capital outlay 99,043 65,870 (33,173) 80,034 Total Government Buildinas 460,603 452,394 (8,209) 444,005 Data Processing: Supplies 5,000 5,075 75 4,353 Services and other charges 120,651 120,390 (261) 100,795 Capital outlay 74,882 60,626 ____55,148 Total Data Processina 200,533 186,091 (14,442) 160,296 Total General Government 1,947,593 1,823,298 __(124,295) _1,793,495 -57- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1990 next page) 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual Public Safetv Police Protection: Personal services 52,389,574 52,312,505 (577,069) 52,096,542 Supplies 62,245 58,762 (3,483) 28,717 Services and other charges 162,492 240,625 78,133 195,987 Capital outlay 104,829 102,733 (2,096) 90,916 Total Police Protection 2,719,140 2,714,625 (4,515) 2,412,162 Fire Protection: Personal services 261,117 247,817 (13,300) 246,510 Supplies 20,640 16,980 (3,660) 17,636 Services and other charges 38,054 38,693 639 35,126 Capital outlay 73,740 67,088 (6,652) 38,307 Total Fire Protection 393,551 370,578 (22,973) 337 579 Protective Inspection: Personal services 277,472 269,004 (8,468) 250,818 Supplies 1,420 1,773 353 1,255 Services and other charges 34,628 38,450 3,822 25,651 Capital outlay 1,500 1,486 I Total Protective Insnection 315,020 310,713 (4,307) 281,296 Emergency Preparedness: Personal services 55,509 51,439 (4,070) 47,150 Supplies 2,905 1,068 (1,837) 625 Services and other charges 8,904 8,646 (258) 6,283 Capital outlay 1,300 1,307 7 3,914 I Total Emeraencv Preparedness 68,618 62,460 (6,158) 57,972 I' I Animal Control: Personal services 10,836 10,609 (227) 8,759 Supplies 550 176 (374) 357 Services and other charges 7,125 4,947 (2,178) 5,097 Total Animal Control 18,511 15,732 14,213 Total Public Safetv 3,514,840 3,474,108 (40,732) 3,103,222 -58- I City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1990 next page) 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual Public Works Engineering Department: Personal services $419,441 $413,007 (56,434) $377,885 Supplies 5,100 4,123 (977) 2,790 Services and other charges 7,765 9,819 2,054 12,155 Capital outlay 350 611 261 9,036 Total EnaineerinQ Dept. 432,656 401,866 Street Department: Personal services 515,820 492,702 (23,118) 470,373 Supplies 138,700 117,538 (21,162) 111,349 Services and other charges 181,775 129,627 (52,148) 159,068 Capital outlay 140,274 127,215 (13,059) 53,330 Total Street Dent. 976,569 867,082 (109,487) 794,120 Maintenance Shop: Personal services 152,069 143,132 (8,937) 137,281 Supplies 188,700 196,694 7,994 177,119 Services and other charges 83,200 87,181 3,981 70,761 Capital outlay 3,800 4,136 336 28,955 Total Maintenance Shon 427,769 431,143 3,374 414,116 Traffic Signals and Lights: Services and other charges 177 900 158,040 (19,860) 144,698 Total Traffic 177,900 158,040 (19,860) 144,698 Watershed Districts: Services and other charges 46,125 Total Watershed Districts_ 54,059 46,125 (7,934) 0 Total Public Works 2,068,953 1,929,950 1,754,800 -59- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1990 next page) 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual Communitv Services Health Inspection: Service and other charges __5102,829 ___588,546 ($14,283) 581,043 Total Health Inspection 102,829 88,546 (14,283) 81,043 Social Services: Service and other charges 26,922 26,087 (835) 0 Total Social Services 26,922 (835) Total Communitv Services 129,751 114,633 (15,118) 81,043 Parks and Recreation Administration: Personal services 246,786 242,871 (3,915) 227,681 Supplies 7,400 9,481 2,081 8,609 Services and other charges 25,950 24,482 (1,468) 32,236 Capital outlay 8,000 7,673 (327) 7,943 Total Administration 288,136 284,507 (3,629) 276,469 Adult Programs• Personal services 57,460 76,472 19,012 80,689 Supplies 48,967 51,545 2,578 60,108 Services and other charges 19B,569 158,053 (40,516) 162,026 Capital outlay 0 (250) _640 Total Adult Proarams 305,246 286,070 (19,176) 303,463 Teen Programs: Personal services 7,918 5,801 (2,117) 6,977 Supplies 1,280 254 (1,026) 1,342 1 Services and other charges 2,275 3,112 837 3,114 Capital outlay 900 990 90 695 Total Teen Proarams 12,373 10,157 (2,216) Children's Programs: Personal services 58,881 52,530 (6,351) 48,944 Supplies 10,765 11,117 352 10,099 Services and other charges 10,776 9,140 (1,636) 8,089 Capital outlay 370 370 0 0 Total Children's Proarams 73,157 (7,635) 67,132 -60- S-2 City of Brooklyn Center (Continued from General Fund prior page) SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) For the Year Ended December 31, 1990 1990 Actual Over or Under(-) 1989 Budaet Actual Budaet Actual Parks and Recreation (continued) General Programs: Personal services $32,140 $30,495 (51,645) $29,489 Supplies 4,598 3,152 (1,446) 10,203 Services and other charges 52,226 46,694 (5,532) 38,233 Capital outlay 0 0 0 364 Total General Pro4rams 88,964 80,341 78,289 Community Center: Personal services 279,896 263,005 (16,891) 258,464 Supplies 56,617 55,922 (695) 49,851 Services and other charges 132,455 153,022 20,567 131,421 Capital outlay 35,155 29,407 (5,748) 78,936 Total Communitv Center 504,123 501,356 (2,767) 518,672 Park Maintenance: Personal services 346,185 345,029 (1,156) 322,013 Supplies 73,500 61,504 (11,996) 65,905 Services and other charges 113,100 120,593 7,493 117,379 Capital outlay 90,025 79,580 (10,445) 52,941 Total Park Maintenance 622,810 606,706 (16,104) 558,238 Total Parks and Recreation, 1,902,444 1,842,294 (60,150) 1,814,391 Economic Develonment Convention Bureau: Services and other charges 168,000 169,942 1,942 168,305 Total Economic Develonment 168,000 169,942 1,942 168,305 Non-De�artmental Expenditures not Charged to Departments: Personal services 207,420 180,536 (26,884) 160,689 Supplies 19,000 20,510 1,510 21,921 Services and other charges 260,881 192,406 (68,475) 157,375 Capital outlay 3,430 (332) Total Non-DeDartmental 490,731 396,550 (94,181) 347,315 Total Expenditures $10,222,312 $9,750,775 (5471,537) 59,062,571 -61- 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. Economic Develobment Authoritv Fund: This Fund was established to account for the Economic Development Authority (EDA) 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. Housina and Redevelopment Fund (H.R.A.): This fund has the 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. Earle Brown Farm Tax Increment Financin� 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 issued for that purpose. Public Emplovees Retirement Fund: This Fund was originally established to account for the central collection of employer and employees' share to pay employee pension contributions under various pension programs. Pension contributions are now processed through each individual Fund. This fund now provides certain health care insurance benefits for City employees who retire before age 65. 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 City, 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. -62- i City of Brooklyn Center B-1 Special Revenue Funds COMBINING BALANCE SHEET December 31, 1990 Earle Brown Economic Tax Incr. Public Diseased Community Development Financing Employees Tree Development Authoritv District Retirement Removal Block Grant 1990 1989 ASSETS Cash and investments $762,535 $373 $616,086 $9,069 $1,388,063 $2,071,808 Temporary improvement notes 281,924 281,924 320,961 Accounts receivable 5,358 5,358 17,461 Delinquent taxes 5,431 3,838 9,269 1,564 Deferred special assessments 23,139 23,139 18,064 Delinquent special assessments 1,573 1,573 1,707 i Due from other funds 106,109 106,109 90,381 Due from other governments $106,109 106,109 90,381 TOTAL ASSETS $874,075 $4,211 $898,010 $39,139 $106,109 $1,921,544 $2,612,327 `i LIABILITIES AND FUND BALANCES Liabilities Accounts payable $18,673 $34,130 $183,897 $3,438 $240,138 $198,117 I Due to other funds $106,109 106,109 90,381 Tem orar Im rovement Notes 6,832,000 6,832,000 2,677,671 P Y P Deferred revenue 5,431 24,712 30,143 21,335 Advances from other funds 698,143 698,143 700,282 Total Liabilities 24,104 7,564,273 183,897 28,150 106,109 7,906,533 3,687,786 Fund Balances Unreserved 849,971 (7,560,062) 714,113 10,989 0 (5,984,989) (1,075,459) Total Fund Balances 849,971 (7,560,062) 714,113 10,989 0 (5,984,989) (1,075,459) TOTAL LIABILITIES AND FUND BALANCE $874,075 $4,211 $898,010 $39,139 $106,109 $1,921,544 $2,612,327 Ciry of B�ooklyn Center �p I Special Revenue Funds (Continued next page) COMBININO STATEMENT OF REVENUES, EXPENDITURE3, AND CHANOES IN FUND BALANCE3 BUDOET AND ACTUAL For the Vear Ended December 31, 1990 Housing and Earle B�own Farm Economic Oevelopment Authoriry Redevelopment Authority Tax Inaement Distrfct Over Over pver Under( Under( Under( Budget Actual Budget Budget Actual Budget Budget Actual Budget I Reveoues Prope�ytaxes a�ia,zoo aio�,i» (s�,o2a) ai,ioo,000 as�s,sas �ai2a,ae�� Intergovernmental: Federal grants State grants 16,500 18,428 (72) Totallnteraovernmental 16,500 18,428 p2) Charges for services: Fees Administrative Total Charaes Tor Services Miscellaneous: Investmentearnings $57,000 $60,199 $3,1gg Other 78,000 18,000 343,614 (343,614) Total Miscellaneous 57,000 78,199 21,199 343,614 0 (343,874) TotalRevenues 57,000 78,199 21,19g 130,700 123,805 (7,096) 1,443,814 976,639 (487,075) Expenditu�es Personal services qg��Gg p8 994 ��9 �62� I Supplies 212 525 3/3 Services and other charges /98,892 141,488 (55,4pq) Capitaloutlay 67,767 66,970 (19� 3,749,437 4,632,�82 883,325 Interest 600,000 390,387 (109,6/3) TotalExoenditures 312,427 237,977 (74,450) 4,249,437 6,023,149 773,712 Excess or Deficit(-lof Revenues Over Exoenditures (255,42� (159,778) 95,849 130,700 123,605 (7,095) (2,805,823) (4,046,610) (1,240,78n I Other Financ+nq Sources or Uses(-) Operating transfers in 302,700 294,541 (8,159) Operating transfers out 4 (130,700) (123,805) 7,096 (516,000) (869,�00) (343,700) Total Other Financinq Sources or Uses(-) 302,700 294,541 (g,159) (130,700) (/23,805) 7,095 (576,000) (869,700) (343,700) Excess or Deficit(-) of Revenues and Other Sources Over Exoenditures and Other Uses 4'7,273 134,763 g7,490 (3,321,823) (4,906,310) (1,b84,48n Fund 9alances Januarv 1 715,208 715,208 0 (2,653,752) (2,663,762) 0 Fund Balances December3l $762,481 $849,971 $87,490 $0 $0 $0 ($5,975,575) ($7,560,062) ($1,584,48� �__sa.�e�as��z�s�es �:::asa �s�s�� a a�asa� �s��a'� .��s�� -64- City of Brooklyn Center B=2 Special Revenue Funde (Continued next page) COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL For the Year Ended December 31, 1990 Pubiic Employees Retirement Diseased Tree Removal Over Over Under(-) Under(-) Buds�et Actual Budget Budpet Actual Budpet Revenues Propertytaxes Intergovernmental: Federal grants State grants Total Intersaovernmental Charges for services: Fees $68,000 $80,110 12,110 Administrative 6,000 7,786 1,78B Total Charaes for Services 74,000 87,896 13,896 Miscellaneous: Investment earnings $70,000 $72,412 $2,412 2,082 2,082 Other 11,000 9,005 (1,99� Total Miscellaneous 70,000 72,412 2,412 11,000 11-087 87 Total Revenues 70,000 72,412 2,412 85,000 98,983 13,983 Exaenditures Personal services 180,000 189,837 9,837 Supplies Services and other charges 85,000 104,859 19,859 Capital outlay Interest Total Exoenditures 180,000 189,837 9,837 85,000 104,859 19,859 Excess or Deficit(-) of Revenues Over Expenditures (110,000) (117,425) (7,425) 0 (5,876) (5,876) Other Financina Sources or Uses(-1 Operating transfers in Operating transfers out Total Other Financina Sources or Uses(-1 0 0 0 0 0 0 Excess or Deficit(-) of Revenues and Other Sources Over Ex�enditures and Other Uses (110,000) (117,425) (7,425) 0 (5,876) (5,876) Fund Balances Januarv 1 831,538 831,538 0 16,865 16,865 0 Fund Balances December 31 $721,538 $714,113 ($7,425) $16,865 $10,989 ($5,876) -65- Ciry of Brooklyn Center B Special Revenue Funds (Continued from prior page) COMBININa STATEMENT OF REVENUES, EXPENDITURES, AND CHANOES IN FUND BALANCE3 BUDOET AND ACTUAL For the Year Ended December 31, 7990 Communiry Development Block Qrant Fund Totals Over Over Under(-) 1980 1990 Under(-) 1989 Budget Actual Budget Budget Actual Budget Actual Revenues Propertytaxes $1,214,200 $1,083,718 ($130,484) $988,915 Inte�governmentaL• Federalgrants a172,000 $155,804 ($16,196) 172,000 166,804 (18,198) 189,28b I State granta /8,600 18,428 (72) 14,857 I Totallnteraovernmental 172,000 156,804 (16,196) 188,600 172,232 (16,268) 203,942 Charges ior services: Fees 88,000 80,110 12,110 67,794 Administrative 8,000 7,786 1,786 6,464 Total Charaes tor Services 74,000 87,896 13,896 73,268 Miscellaneous: Investmentearnings 500 450 (50) 127,500 135,143 7,&43 285,729 Other 354,614 27,OOb (327,609) 49,730 TotalMiscellaneous 500 450 (50) 482,114 182,148 (319,986) 31b,469 TotalFtevenues 172,500 156,254 (16,246) 1,958,814 1,606,992 (452,822) 1,581,574 Expenditures Personalservicee 7L8,156 218,831 (9,325) 4,686 Supplies 212 b26 313 Services and othercharges 281,892 246,347 (35,545) 5,499,308 Capital ou�lay 3,818,804 4,899,732 883,128 Interest 500,000 390,387 (109,613) Total Expenditures 4,828,864 5,555,822 728,958 5,503,993 Excess or Deficiencv ot Revenues Over Exoenditures 172,500 156,254 (16,246) (2,888,050) (4,049,830) (1,181,780) (3,922,479) Othe� Fina�cing Sowces or Uses(-1 Operating transfere in 302,700 294,541 (8,159) 287,786 Opereti�g transfers out �nz,000� �i�o,ass� i,osa �aia,�oo� �i,�sa,2a�� sas,sa�� se�,�as) Total Other Financina Sources or Uses(-) (172,000) (170,936) 1,064 (516,000) (859,700) (343,700) (a20,000) Excess or Deficiencv of Revenues and Other Sources Over Exnenditures and Other Uses 500 (14,682) (15,182) (3,384,050) (4,909,530) (1,525,480) (4,342,419) Fund Balances Januarv 1 14,682 14,682 0 (1,075,459) (1,075,459) 0 3,266,960 F� d 8 f D=o b 31 $15 f 182 ==`f- i ($15 182) ($4 (E5 ($1 ($1 -66- I City of Brooklyn Center, Minnesota DEBT SERVICE FUNDS The Debt Service Funds were established to account for the payment (from taxes and other resources) of interest and principal on long- i 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 related liability is incurred, except for principal and interest which are recognized when due. The City's Debt Service funds included in this section are: General�Obliaation State Aid Street Bonds Debt Service: This Fund was established to account for the accumulation of resources, including a combination of state aid allotments and special assessments, for payment of principal and interest on bonds issued in 1970 to finance a comprehensive improvement and upgrading of I i those arterial streets qualifying as state aid routes. Park Bonds of 1980 Debt Service Fund: This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds authorized by the electorate in 1980 to finance the improvement and equipping of parks, park lands and related public recreational facilities. These improvements include neighborhood parks, Central Park, Palmer Nature Center, Shingle Creek Trailway and the Arboretum. General Obliaation Tax Increment Bonds of 1983 Fund: This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1983 to finance purchase of land and installation of utilities for housing for the elderly. General Obliaation Tax Increment Bonds of 1985 Fund: This Fund was established to account for the accumulation of resources for payment of principal and interest on general obligation bonds issued in 1985 to finance the purchase and redevelopment of the historic Earle Brown Farm in Brooklyn Center. Improvement Bond Funds: These funds were established to account for the collection of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold periodically to finance improvements deemed to benefit the properties against which the assessments are levied. Refundina Bonds of 1987 Fund: This fund was established to account for the collection 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. -67- City of Brooklyn Center C-1 Debt Service Funds COMBINING BALANCE SHEET December 31, 1990 Park Tax Incre- Tax Incre- Improvement Refunding Bonds ment Bonds ment Bonds Bonds of Bonds of Totals of 1980 of 1983 of 1985 1976 1987 1990 1989 ASSETS Cash and investments $307,934 $465,298 $321,625 $1,338,110 $716,192 $3,149,159 $3,544,687 Temporary improvement notes 140,912 212,922 147,177 612,325 327,733 1,441,069 537,409 7axes receivable 13,364 1,934 15,298 7,397 Special assessments receivable: Deferred 6,585 966,555 973,140 1,177,224 Delinquent 2,784 18,618 21,402 9,954 TOTAL ASSETS $462,210 $678,220 $468,802 $1,961,738 $2,029,098 $5,600,068 $5,276,671 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $57 $1,418 $1,475 $434 Deferred revenue $13,364 11,303 985,173 1,009,840 1,194,575 Total Liabilities 13,364 11,360 986,591 1,011,315 1,195,009 Fund Balance Reserved 448,846 $678,220 $468,802 1,950,378 1,042,507 4,588,753 4,081,662 Total Fund Balances 448,846 678,220 468,802 1,950,378 1,042,507 4,588,753 4,081,662 TOTAL LIABILITIES AND FUND BAIANCES $462,210 $678,220 $468,802 $1,961,738 $2,029,098 $5,600,068 $5,276,671 r �r r City of Brooklyn Center C Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 1990 State Tax Tax Aid Park Increment Increment Improvement Refunding Street Bonds Bonds of Bonds of Bonds of Bonds of Totals Bonds of1980 1983 1985 1976 1987 1990 1989 Revenues Propertytaxes $273,115 $130,243 $613 $403,971 $448,376 Special assessments 33,729 $298,277 332,006 419,376 Intergovenmentalrevenue 74,771 74,771 87,463 Investment earnings 17,841 49,339 $30,225 155,122 68,306 320,833 283,673 Total Revenues 365,727 179,582 30,225 189,464 366,583 1,131,581 1,238,888 Exoenditures Principal $60,000 120,000 75,000 50,000 60,000 165,000 530,000 635,000 Interest 6,075 71,100 57,688 409,150 4,830 37,149 585,992 626,068 Fiscal agent fees 474 624 699 887 515 1,848 5,047 3,651 Other 0 194 Total Exnenditures 66,549 191,724 133,387 460,037 65,345 203,997 1,121,039 1,264,913 I Excess or Deficiencv of Revenues Over Exoenditures (66,549) 174,003 46,195 (429,812) 124,119 162,586 10,542 (26,025) Other Financina Sources or Uses(-1 Operating transfers in 66,549 430,000 496,549 490,484 Total Other Financina Sources or Uses(-) 66,549 430,000 496,549 490,484 Excess or Deficiencv of Revenues and Other Sources over Expenditures 0 174,003 46,195 188 124,119 162,586 507,091 464,459 Fund Balances Januarv 1 0 274,843 632,025 468,614 1,826,259 879,921 4,081,662 3,617,203 Fund Balances December 31 $0 $448,846 $678,220 $468,802 $1,950,378 $1,042,507 $4,588,753 $4,081,662 eea=emxxeeeeeeese�an sozeee eeee=ea :eeev=a voemoe= m==xsxa: z=exxse eeeeeeev sxc=e=v= City of Brooklyn Center, Minnesota CAPITAL PROJECTS FUNDS The Capital Projects Funds are established to account for all resources us�ed 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: Cabital 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. Municipal 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 whally or in part by special assessments levied against benefitted properties. 1 -70- City of Brooklyn Center D Capital Projects Funds COMBINING BALANCE SHEET December 31, 1990 Municipal Special Capital State Aid Assessment Totals Improvements for Construction Fund Construction Fund 1990 1989 ASSETS Cash and investments $2,968,064 $1,534,965 $621,703 $5,124,732 $6,833,200 Temporary improvement notes 1,358,199 704,739 2,062,938 1,107,954 Accounts receivable 0 4,540 Special assessments: Deferred 1,494 1,484,875 1,486,369 693,622 Delinquent 199 10,096 10,295 14,000 Due from other funds 50,000 50,000 50,000 Due from other governments 1,633,835 1,633,835 2,049,963 Interfund loans: Municipal liquor 233,151 233,151 248,087 Golf course 1,100,000 1,100,000 1,100,000 Economic development authority 593,069 593,069 595,208 TOTAL ASSETS $5,711,107 $4,466,608 $2,116,674 $12,294,389 $12,696,574 _____====�a ====�ass LIABILITIES AND FUND BALANCES Liabilities Accounts payable $2,039 $7,656 $177,731 $187,426 $79,181 Temporary improvement notes 1,616,658 1 1,304,378 Deferred revenue 1,693 1,633,835 1,494,971 3,130,499 707,622 Total Liabilities 3,732 1,641,491 3,289,360 4,934,583 2,091,181 Fund Balances Reserved: Unexpended appropriations 223,951 452,974 676,925 1,585,829 State approved projects 0 2,049,963 Advances to other funds 1,383,151 593,069 1,976,220 1,993,295 Unreserved 4�100,273 __1,779,074 (1,172,686) 4,706,661 4 Total Fund Balances 5,707,375 2,825,117 (1,172,686) 7,359,806 10,605,393 TOTAL LIABILITIES AND FUND BALANCES $5-711 $4�466 $2-116�674 $12-294-389 $12�696 -71- City of Brooklyn Center D Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 1990 Municipal Special Capital State Aid Assessment Improvements for Construction Totals Fund Construction Fund 1990 1989 Revenues Special assessments $1,888 $224,063 $225,951 $165,120 Intergovernmental: State grants $819,187 655,637 1,474,824 772,703 Investment earnings 425,396 279,018 27,608 732,022 708,480 Other 42,367 42,367 354,461 Total Revenues 427,284 1,140,572 907,308 2,475,164 2,000,764 Exeenditures Interest 58 149,740 149,798 84,363 Capital outlays 168,120 1,210,709 2,426,815 3,805,644 951,099 Total Exnenditures 168,120 1,210,767 2,576,555 3,955,442 1,035,462 1 Excess or Deficiencv of Revenues Over Ex�enditures 259,164 (70,195) (1,669,24� (1,480,278) 965,302 i Other Financina Sources or Uses(-) Operating transfers in 94,289 1,848,225 1,942,514 146,801 Operating transfers out (1,979,699) (94,289) (2,073,988) (258,790) Total Other Financinq Sources or Uses(-) 0 (1,885,410) 1,753,936 (131,474) (111,989) F�ccess or Deficiencv of Revenues and Other Financina Sources Over Expenditures and Other Financina Uses Before Cumulative Effect of Accountina Chanae 259,164 (1,955,605) 84,689 (1,611,752) 853,313 Cumulative Effect of Accounting Change (1,633,835) (1,633,835) Excess or Deficiencv of Revenues and Other Financina Sources Over Ex�enditures Other Financina Uses and Cumulative Effect of Accountina Chanae 259,164 (3,589,440) 84,689 (3,245,58� 853,313 Fund Balance Januarv 1 5,448,211 6,414,557 (1,257,375) 10,605,393 9,752,080 Fund Balance December 31 $5,707,375 $2,825,117 ($1,172,686) $7,359,806 $10,605,393 -72- City of Brooklyn Center S-3 Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnina to December 31. 1990 Project Over(-) Under 1990 to Date Expended �e of Pro'�ect Approp riations Expenditures Expenditures Aaaropriations I Replat I-94 property $33,000 $6,950 $33,178 ($178) �I Telephone System 96,828 104,965 118,497 (21,669) Council Chambers Sound 8,169 10,288 10,288 (2,119) Cable TV Improvements 223,951 223,951 I, Constitution Hall 4,540 4,540 (4,640) Central Park Irrigation 45,420 41,377 41,377 4,043 Totals $407,368 $168,120 $207,880 $199,488 i City of Brooklyn Center S-4 Municipal State Aid Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnin4 to December 31, 1990 Project Over(-) Under 1990 to Date Expended Proiect Number Appropriation Expenditures Expenditures Aqpropriations Street improvement 69th Ave 87-08 $60,000 $4,556 $68,451 ($8,451) Shingle Creek Parkway Cty Rd 10 87-23 9,065 0 2,812 6,253 North Lilac Drive trailway 88-19 143,152 25,186 143,152 0 Signal at S.C.P. Freeway 88-25 87,920 79,909 85,124 2,796 Brookdale Square turnlane 89-18 59,598 0 58,365 1,233 Unity Ave culvert 89-29 15,000 0 11,367 3,633 69th Ave professional services 90-10a 114,900 62,411 62,411 52,489 69th Ave right of way acquisition 90-10b 1,104,300 878,320 878,320 225,980 Dupont 65th Ave signals 90-11 88,364 78,849 78,849 9,515 Humboldt 65th Ave signals 90-12 61,094 53,726 53,726 7,368 Xerxes Ave sidewalk improvment 90-19 27,680 27,752 27,752 (72) Totals $1,771,073 $1,210,709 $1,470,329 $300,744 City of Brooklyn Center S-5 Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beainnina to December 31. 1990 Project Over(-) Under Project 1990 to Date Expended �e of Pro'� Number Appropriations Exoenditures Exqenditures AqprOp riations West River Road 66th to 73rd 88-18 $1,585,705 $1,374,800 $1,436,952 $148,753 Brookdale Square Signal 88-24 78,627 36,144 74,426 4,201 Fremont/Girard Alley 89-08 97,854 12,196 97,854 0 Girard/Humboldt Alley 89-15 38,136 3,801 38,136 0 Emerson/Freeway Alley 89-16 39,487 4,214 39,487 0 Lakeview Alley 89-17 13,634 2,432 13,634 0 Brookdale Square Entrance 89-19 128,445 8,969 128,445 0 Freeway Blvd. Improvement 89-26 762,463 673,556 673,556 88,907 Humboldt Ave Improvement 89-27 234,078 191,446 191,446 42,632 69th Ave Reconstruction Seg 2 90-10 195,000 119,257 119,257 75,743 Totals $3,173,429 $2,426,815 $2,813,193 $360,236 I I City of Brooklyn Center, Minnesota ENTERPRISE FUNDS I The Enter rise Fu p nds were established to account for the financing of self supporting activities of the City which render services on �I 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: Munici�al Liauor Fund: This Fund was established to account for the operations of the City's three municipal off-sale liquor stores. i Golf Course Fund: This fund was established to account for operations of Centerbrook Golf Course, a 9 hole, par 3 course owned by the City. Earle Brown Heritacre Center. This fund was established to account 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 eleven rooms available to complement convention activities or be rented individually. Several of the barns have been restored as unique office settings which have found a niche in the market. I� Recvclina and Refuse Fund: This fund was established to account 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. Public Utilities Fund: This Fund was established to account for the production and distribution of water to customers and the collection of sanitary sewage to be treated by the Metropolitan Waste Control Commission. i6- City of Brooklyn Center F Enterprise Funds Continued next page) COMBINING BALANCE SHEET December 31, 1990 E Brown Municipal Golf Heritage Recycling Public Liquor Course Center Refuse Utitities Totals ASSETS Fund Fund Fund Fund Fund 1990 1989 Current Assets Cash, cash equivalents and temporary cash investments $6,666 $47,112 $42,486 $63,444 $4,622,886 $4,782,594 $4,478,301 Accounts receivabte net 1,078 78,827 157,657 237,562 192,996 Accrued revenue 12,456 287,196 299,652 256,421 Assessments receivable: Deferred 94,568 94,568 91,230 Delinquent 3,610 3,610 2,314 Due from other governments 129,137 129,137 230,685 Inventories 307,888 5,572 13,737 327,197 254,264 Prepaid expenses 1,305 106,637 107,942 102,250 Total Current Assets 316,937 52,684 121,313 75,900 5,415,428 5,982,262 5,608,461 Restricted Assets Temporary cash investments 4,000,000 4,000,000 4,000,000 Debt retirement investments 123,510 123,510 125,265 Total Restricted Assets 4,123,510 4,123,510 4,125,265 I, I Fixed Assets Mains and lines 12,132,727 12,132,727 12,132,727 I I Structures 294,852 303,321 9,058,988 4,963,371 14,620,532 5,010,475 Equipment 130,252 108,365 846,106 281,458 1,366,181 491,383 Land 107,405 1,391,711 925,000 27,326 2,451,442 1,526,442 Land improvements 4,228 30,728 2,600 37,556 31,807 I Leasehold improvements 27,834 27,g34 27,g34 I 564,571 1,834,125 10,830,094 17,407,482 30,636,272 19,220,668 Less: Allowance for depreciation 196,090 65,230 127,400 5,417,316 5,806,036 5,279,795 I Total Fixed Assets 368,481 1,768,895 10,702,694 11,990,166 24,830,236 13,940,873 TOTALS $685,418 $1,821,579 $10,824,007 $75,900 $21,529,104 $34,936,008 $23,674,599 r rr rw r� r. r� r�. F-1 (Continued from E Brown prior page) Municipai Golf Heritage Recycling Public Liquor Course Center Refuse Utilities Totals Fund Fund Fund Fund Fund 1990 1989 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $110,647 $1,644 $93,628 $28,311 $125,140 $359,370 $198,881 Due to other funds 50,000 50,000 50,000 Accrued salaries payabie 929 204 1,104 2,237 20,810 Accrued vacation and sick pay 13,431 781 15,342 29,554 31,043 Temporary improvement note 8,000 8,000 55,519 Deposits payable 29,976 29,976 Current portion of long-term debt 16,256 45,000 61,256 59,936 Total Current Liabilities 149,263 52,629 123,604 28,311 186,586 540,393 416,189 II i LonA-Term Liabilities Construction loan 216,895 1,100,000 1,316,895 1,333,151 Revenue bonds 45,000 45,000 90,000 Total Lonq-term Liabilities 216,895 1,100,000 45,000 1,361,895 1,423,151 Fund Eauitv Contributions 692,206 10,700,385 10,616,086 22,008,677 11,308,292 Retained earnings: Reserved: Debt retirement 123,510 123,510 125,265 Restricted assessments 98,178 98,178 93,544 Plant expansion 4,000,000 4,000,000 4,000,000 Unreserved 319,260 (23,256) 18 47,589 6,459,744 6,803,355 6,308,158 Total Retained Earninps 319,260 (23,256) 18 47,589 10,681,432 11,025,043 10,526,967 Total Fund Epuitv 319,260 668,950 10,700,403 47,589 21,297,518 33,033,720 21,835,259 TOTALS $685,418 $1,821,579 $10,824,007 $75,900 $21,529,104 $34,936,008 $23,674,599 City of Brooklyn Center F_2 Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS/rlc For the Year Ended December 31, 1990 E Brown Municipal Golf Heritage Recycling Public Liquor Course Center Refuse Utilities Totals Fund Fund Fund Fund Fund 1990 1989 Ooeratina Revenues Sales and user fees $2,455,551 $272,254 $347,866 $103,548 $2,229,106 $5,408,325 $4,815,914 Costofsales 1,863,843 28,056 1,891,899 1,871,551 GrossMarain 244,198 347,866 103,548 2,229,106 3,516,426 2,944,363 Operatina Exoenses Personal services 263,255 122,018 327,697 712,970 675,710 Supplies 10,385 14,569 54.253 43 98,820 178.070 208,354 Otherservices 106,124 10,452 600,695 113,243 1,304,845 2,135,359 1,424,055 Insurance 23,258 3,388 9,202 11,802 47,650 34,091 Utilities 23,598 8,175 91,690 152,584 276,047 184,043 Rent 36,951 17,116 261,974 316,041 276,234 Depreciation 26,974 23,351 127,400 354,979 532,704 385,995 Total Ooeratina Exoenses 490,545 181,953 900,356 113,286 2,512,701 4,198,841 3,188,482 Oaeratina Income (Lossl 101,163 62,245 (552,490) (9,738) (283,595) (682,415) (244,119) Nonooeratina Revenues or Exoenses(-) Investmentearnings 4,744 5,124 728,010 737,878 720,753 Special assessments 25,530 25,530 21,930 Intergovernmentai revenue 40,877 40,877 90,431 Other revenue 8,299 11,748 20,047 4,289 Interest and fiscal age�t fees (20,514) (57,500) (4,582) (2,910) (5,425) (90,931) (91,846) Nonooeratina Totals (7,471) (52,376) (4,582) 37,967 759,863 733,401 745,557 Income Before Ooeratina Transfers 93,692 9,869 (557,072) 28,229 476,268 50,986 501,438 Operatina Transfers: In 429,700 429,700 out�-� �iio,000� �iio_000� (135 ,000� Net Income (16,308) 9,869 (127,372) 28,229 476,268 370,686 366,438 Deoreciation on contributed assets that reduces contributed capital 127,390 127,390 Retained Earninas Januarv 1 335,568 (33,125) 0 19,360 10,205,164 10,526,967 10,160.529 Retained Earnings December 31 $319,260 ($23,256) $18 $47,589 $10,681,432 $11,025,043 $10,526,967 -79- City of Brooklyn Center F Enterprise Funds COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 1990 E Brown Municipal Golf Heritage Recycling Public Liquor Course Center Refuse Utilities Totals Cash flows from operatin4 activities: Fund Fund Fund Fund Fund 1990 Operating income(loss) $101,163 $62,245 ($552,490) ($9 ($283,595) ($682,415) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating actvities: Depreciation 26,974 23,351 127,400 354,979 532,704 Increase (decrease) in assets and liabilities: Accounts receivable 8,402 (78,827) 89,995 (10,453) 9,117 Inventories (64,311) (1,141) (7,481) (72,933) Prepaid expenses 2,590 (8,282) (5,692) Accounts payable 14,093 (3,42� 93,628 739 56,776 161,809 Accrued salaries and leave (6,540) (2,035) (11,48� (20,062) Deposits payable 29,976 29;976 Total adiustments (18,792) 16,748 172,177 90,734 374,052 634,919 Net cash erovided bv (used for) operatina 82,371 78,993 (380,313) 80,996 90,457 (47,496) Cash flows from noncao�tai f�nancma activities: Net borrowings(repayments) under revolving loan arrangement (8,256) (55,519) (63,775) Interest paid on revolving loan (20,514) (57,500) (4,582) (2,910) (85,506) Other non-operating income 8,299 37,278 45,577 Operating grants received 40,877 40,877 Operating transfers in 429,700 429,700 Operating transfers out (110,000) (110,000) Net cash orovided bv (used for) noncanital financina activities (130,471) (57,500) 425,118 (17,552) 37,278 256,873 Cash flows from canital and related financinq activities: Capital Contributions in aid of construction 10,827,775 10,827,775 Acquisition and construction of capital assets (3,180) (10,049) (10,830,094) (580,259) (11,423,582) Principal paid on revenue bonds (45,000) (45,000) Interest paid on revenue bonds (5,425) (5,425) Proceeds from sale of equipment 1,515 1,515 Net cash used for caoital and related financina activities (3,180) (10,049) (2,319) 0 (629,169) (644,717) Cash flows from investino activities: Interest on investments 4,744 5,124 728,010 737,878 Change in restricted assets i,755 1,755 Net cash orovided bv lused for) investina activities 4,744 5,124 0 0 729,765 739,633 Net increase (decrease) in cash and cash equivalents (46,536) 16,568 42,486 63,444 228,331 304,293 Cash, cash eauivalents and temporarv cash investments at beainnin4 of vear 53,202 30,544 4,394,555 4,478,301 Cash, cash equivalents and temporary cash investments at end of year $6�666 $47-112 $42,486 $63,444 $4�622 $4-782�594 -80- F-4 City of Brooklyn Center Municipal Liquor Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1990 1990 1989 Sales Liquor $797,256 $769,100 Beer 1,287,434 1,268,903 Wine 297,824 316,883 Soft drinks 49,800 44,334 Other merchandise 23,237 14,906 Total Sales 2,455,551 2,414,126 Less: Cost of Sales 1,863,843 1,844,619 Gross Marpin 591,708 569,507 Operatinq Expenses Personal services 263,255 249,355 Supplies 10,385 10,525 Other services 106,124 99,712 Insurance 23,258 23,124 Utilities 23,598 27,191 Rent 36,951 28,604 Depreciation 26,974 19,842 Total Oqeratina Exr�enses 490,545 458,353 Operatina Income 101,163 111,154 Non Operatinq Revenue or Expense(-1 Investment earnings 4,744 9 659 Other revenue 8,299 3,152 I Interest and fiscal agent fees (20,514) (21,727) Total Non Operatinq (7,471) (8,916) O�eratinq Transfers to General Fund 110,000 135,000 Net Income (16,308) (32,762) Retained Earninqs Januarv 1 335,568 368,330 Retained Earnings December 31 $319,260 $335 568 -81- F-5 City of Brooklyn Center Golf Course Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1990 1990 1989 Sales Green fees $204,873 $170,260 Rentals 9,392 8,283 Leagues 4,901 3,012 Golf lessons 12,706 4,673 Concessions 17,068 16,702 Merchandise 20,123 17,123 Pop machine 2,719 3,020 Miscellaneous 472 1,785 Total Sales 272,254 224,858 Less: Cost of Sales 28,056 26,932 Gross Marqin 244,198 197,926 Operatinc�Expenses Personal services 122,018 100,440 Supplies 14,569 17,450 Other services 10,452 9,660 Insurance 3,388 3,385 Utilities 8,175 8,236 Depreciation 23,351 23,684 Total Operatinp Exqenses 181,953 162,855 O�eratinp Income 62,245 35,071 Non Oneratinq Revenue or Ex�ense(-1 Investment earnings 5,124 2,505 Interest and fiscal agent fees (56,250) Total Non O�eratinq (52,376) (53,745) Net Income 9,869 18,674 Retained Earninas Januarv 1 (33,125) (14,451) Retained Earnings December 31 ($23,256) ($33,125) -82- F-6 City of Brooklyn Center Earle Brown Heritage Center Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNtNGS For the Year Ended December 31, 1990 1990 Sales Conventions $217,080 Inn on the Farm 69,993 Office Rents 59,707 Other 1,086 Total Sales 347,866 O�eratinp Exp enses Supplies 54,253 Other services 600,695 Insurance 9,202 Utilities 91,690 Rent 17,116 Depreciation 127,400 Total Oqeratina Exnenses 900,356 O�eratina Income (552,490) Non Oaeratinq Revenue or Ex�ense(-) Interest and fiscal agent fees (4,582) Total Non Oqeratinq 4 582 Oneratinp Transfers In 429,700 Net Income (Loss) (127,372) De�reciation on contributed assets that reduces contributed cabital 127,390 Retained Earninqs Januarv 1 0 Retained Earnings December 31 $18 -83- F City of Brooklyn Center Recycling Refuse Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1990 I 1990 1989 Operatin4 Revenues Recycling service fees $102,854 $54,449 Recycling container sales 694 30,133 Gross Marain 103,548 84,582 Operatinq_Exnenses Supplies 43 69,798 Other services 113,243 79,166 Total Operatinp Expenses 113,286 148,964 Oneratina Income (9,738) (64,382) Non Operatinq Revenues or Expenses(-1 Intergovernmental revenue 40,877 90,431 Interest and fiscal agent fees (2,910) (6,689) Nonoqeratinq Totals 37,967 83,742 Net Income 28,229 19,360 Retained Earninas Januarv 1 19,360 0 Retained Earnings December 31 $47,589 $19,360 -84- (PUBS1) City of Brooklyn Center Public Utilities Fund BALANCE SHEET December 31, 1990 Water Sewer Totals Accounts Accounts 1990 1989 ASSETS Current Assets Cash, cash equivalents and tem orar h i 4 4 622 886 4 394 555 p y cas nvestments $1,256,222 $3,366,66 Accounts receivable net 54,186 103,471 157,657 183,516 Accrued revenue 82,642 204,554 287,196 244,401 Assessments receivable: Deferred 94,568 94,568 91,230 Delinquent 3,610 3,610 2,314 Due from other governments 129,137 129,137 140,254 Inventories 13,737 13,737 6,256 Prepaid expenses 106,637 106,637 98,355 Total Current Assets 1 3 5,415,428 5,160,881 Restricted Assets Temporary cash investments 3,700,000 300,000 4,000,000 4,000,000 Debt retirement investments 123,510 123,510 125,265 Total Restricted Assets 3,823,510 300,000 4,123,510 4,125,265 Fixed Assets Mains and lines 7,137,693 4,995,034 12,132,727 12,132,727 Structures 3,662,860 1,300,511 4,963,371 4,414,970 Equipment 140,729 140,729 281,458 257,578 Land improvements 2,600 2,600 2,600 Land 23,938 3,388 27,326 27,326 10,967,820 6,439,662 17,407,482 16,835,201 Less: Allowance for Depreciation 3,154,042 2,263,274 5,417,316 5,068,800 Total Fixed Assets 7,813,778 4,176,388 11,990,166 11,766,401 TOTALS $13,142,253 $8,386,851 $21,529,104 $21,052,547 -85- F Water Sewer Totals Accounts Accounts 1990 1989 LIABILITIES AND FUND EQUITY Current Liabilities Accounts payable $62,570 $62,570 $125,140 $68,364 Accrued salaries payable 552 552 1,104 9,879 Accrued vacaton and sick pay 7,671 7,671 15,342 18,054 Current portion of long-term debt 45,000 45,000 45,000 Total Current Liabilities 115,793 70,793 186,586 141,297 Lona-Term Liabilities Revenue Bonds 45,000 45,000 90,000 Total Lona-Term Liabilities 45,000 45,000 90,000 Fund E uit Contributions 4,997,510 _5,618,576 10�616,086 10,616,086 Retained Earnings: Reserved: Debt Retirement 123,510 123,510 125,265 Restricted assessments 98,178 98,178 93,544 Plant expansion 3,700,000 300,000 4,000,000 4,000,000 Unreserved 4,062,262 2,397,482 6,459,744 5,986,355 Total Retained Earninqs 7,983,950 2,697,482 10,681,432 10,205,164 Total Fund Eauitv 12,981,460 8,316,058 21,297,518 20,821,250 TOTALS $13,142,253 $8,386,851 $21,529,104 $21,052,547 -86- City of Brooklyn Center F=9 Public Utilities Fund STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1990 Water Sewer Totals Accounts Accounts 1990 1989 O�eratina Revenue Service to customers $630,167 $1,503,496 $2,133,663 $2,038,397 Service hook-up charges 57,180 91 57,271 6,135 Sale of ineters 2,336 2,336 15,218 Penalties 6,464 29,372 35,836 33,068 Total O�eratinq Revenue 696,147 1,532,959 2,229,y06 2,092,818 O�eratin�penses Personal services 209,603 118,094 327,697 325,915 Supplies 86,794 12,026 98,820 110,581 Utilities 134,378 18,206 152,584 148,616 Contractual services 173,722 163,907 337,629 404,415 Metro Waste Control Comm. 1,240,992 1,240,992 1,086,314 Depreciation 248,478 106,501 354,979 342,469 Total O�eratinq Ex�enses 852,975 1,659,726 2,512,701 2,418,310 Oqeratina Income or Loss(-) ___(156,828) (126,767) (283,595) (325,492) Non O�eratina Revenues or Expenses(-1 Investment earnings 416,446 311,564 728,010 708,589 Special Assessments 12,765 12,765 25,530 21,930 Metro VVaste Control Comm. 0 10 Other 11,433 315 11,748 657 Interest and fiscal fees (5,425) (5,425) (7,180) Total Non OQeratinq 435,219 324,644 759,863 724,006 Net Income 278,391 197,877 476,268 398,514 Retained Earninps Januarv 1 7,705,559 2,499,605 10,205,164 9,806,650 Retained Earnings December 31 $7,983,950 $2,697,482 $10,681,432 $10,205,164 _87_ r■� r r r i s r �s City of Brooklyn Center S-6 Public Utilities Fund SCHEDULE OF WATER OPERATING EXPENSES For the Year Ended December 31, 1990 Classification by Function Source of Admin- Customer Totals S upply Transmission istration Accountinq 1990 1989 Personal Services: Salaries and wages $30,027 $58,249 $59,984 $33,649 $181,909 $191,958 Payroll taxes 14,799 14,799 13,948 Employee benefits 12,895 12,895 11,348 30,027 58,249 87,678 33,649 209,603 217,254 Supqlies and material 75,648 9,960 615 571 86,794 90,418 I Heat, liqht and qower. Electricity 128,612 1,502 130,114 129,486 Gas 4,264 4,264 2,882 132,876 1,502 134,378 132,368 Contractual Services: Professional services 2,675 1,518 4,193 43,338 Postage 13,190 13,190 12,369 Insurance 5,901 5,901 3,791 Repairs and maintenance 6,361 4,782 7,732 1,345 20,220 41,795 Rent and administration 109,249 109,249 104,405 Equipment rental 5,457 15,512 20,969 19,891 6,361 7,457 129,857 30,047 173,722 225,589 Depreciation 82,192 166,286 248,478 253,248 Totals $327,104 $243,454 $218,150 $64,267 $852,975 $918,877 City of Brooklyn Center S-7 Public Utilities Fund SCHEDULE OF SEWER OPERATING EXPENSES For the Year Ended December 31, 1990 Classification by Function Disposal Admin- Customer Totals Pumpinq Transmission istration Accountinq 1990 1989 Personal Services: Salaries and wages $28,560 $38,469 $22,838 $89,867 $83,365 Payroll taxes 14,799 14,799 13,948 Employee benefits 13,428 13,428 11,348 28,560 38,469 51,065 118,094 108,661 Suqblies and material 4,357 7,080 589 12,026 20,163 Heat, liaht and power 18,206 18,206 16,248 Contractual Services: Professional services 1,895 1,895 1,706 Postage 1,140 $2,691 3,831 2,772 Insurance 5,901 5,901 3,791 Repairs and maintenance 7,019 10,715 2,790 20,524 19,922 Rent and administration 109,755 109,755 104,405 Equipment rental 5,457 16,544 22,001 18,929 Metro Waste Control Comm. 1,211,344 1,211,344 1,086,314 City of Brooklyn Park 29,648 29,648 27,301 I� I 1,248,011 10,715 126,938 19,235 1,404,899 1,265,140 I Depreciation 56,601 49,900 106,501 89,221 Totals $1,355,735 $106,164 $178,592 $19,235 $1,659,726 $1,499,433 I i i 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 Compensation Fund: This fund was established to account for funds on deposit with the trustees who administer the City sponsored deferred compensation plan. -90- City of Brooklyn Center G Employee Deferred Compensation Fund STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For the Year Ended December 31, 1990 Balance Balance December 31, December 31, 1989 Additions Deductions 1990 N ASSETS Investments for deferred compensation plans held by trustees (1) $1,602,255 $275,447 $84,696 $1,793,006 TOTAL ASSETS $1,602,255 $275,447 $84,696 $1,793,006 LIABILITIES Due to employees for deferred compensation $1,602,255 $275,447 $84,696 $1,793,006 TOTAL LIABILITIES $1,602,255 $275,447 $84,696 $1,793,006 (1) Investments are reported at market value. -91- City of Brooklyn Center, Minnesota r 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. -92- City of Brooklyn Center S-8 I SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1990 Balance Transfers(1) Balance January 1, and December 31, 1990 Acauisitions Reclasses Dis�osals 1990 Investments in Genera! Fixed Assets Land $2,893,399 ($732,338) $2,161,061 Buildings and improvement� 9,315,776 $37,638 (4,833,211) $55,941 4,464,262 Park improvements 3,056,305 (201,341) 32,971 2,821,993 Furniture 700,163 187,357 (6,199) 146,008 735,313 De artmental e ui m n 3 564 2 4 7 200 430 3 649 018 p q p e t ,685 8, 63 Total Investments in General Fixed Assets $19,530,328 $509,758 ($5,773,089) $435,350 $13,831,647 Sources of Investments Generallndebtedness $454,160 $14,372 $439,788 General Fund revenues 5,788,160 $509,758 183,167 6,114,751 Liquor store income 230,420 7,292 223,128 Contributions 247,750 7,840 239,910 Capital projects funds: G.O. bonds 4,940,870 ($2,785,896) 68,195 2,086,779 Tax levies 3,074,260 (2,767,193) 9,717 297,350 Sale of assets 126,119 3,991 122,128 Debt Service Funds excess 159,551 5,049 154,502 Capital Projects Fund Balance 3,170,413 100,328 3,070,085 Federaf grants 1,095,281 (220,000) 27,698 847,583 State grants 243,344 7,701 235,643 Total Sources of Investments $19,530,328 $509,758 ($5,773,089) $435,350 $13,831,647 (1) $5,773,089 in assets were transfered to the Earle Brown Heritage Center enterprise fund upon its opening in April 1990. Some other assets were reclassified during an inventory. -93- i i i r S-9 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1990 Other Function Land Buildin4s Imbrovements E ui ment Total General government $336,669 $336,669 Government buildings $303,770 $3,889,308 $276,469 49,234 4,518,781 Public safety 450 1,910,982 1,911,432 I Public works 604 1,394,253 1,394,857 I Recreation 266,347 266,347 Parks 1,857,291 573,900 2,545,524 406,995 5,383,710 Economic Development Authority 19,851 19,851 Totals $2,161,061 $4,464,262 $2,821,993 $4,384,331 $13,831,647 S-10 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1990 General Fixed General Fixed Assets Assets January 1, December 31, Function 1990 Additions Transfers(11 Deductions 1990 General government $326,900 $37,245 $27,476 $336,669 Government buildings 4,557,960 40,126 79,305 4,518,781 Public safety 1,857,536 171,951 118,055 1,911,432 Public works 1,274,281 160,910 40,334 1,394,857 Recreation 257,239 48,934 39,826 266,347 Parks 5,465,536 48,528 130,354 5,383,710 Economic Development Authority 5,790,876 2,064 ($5,773,089) 19,851 Totals $19,530,328 $509,758 ($5,773,089) $435,350 $13,831,647 �I (1) $5,773,089 in assets were transfered to the Earle Brown Heritage Center enterprise fund upon its opening in April 1990. i City of Brooklyn Center, Minnesota GENERAL LONG-TERM DEBT ACCOUNT GROUP The General Long Term Debt Account Group was established to account for the City's unmatured general obligation long term debt that is secured by the full faith and credit of the City and is not the primary obligation of an Enterprise Fund of the City. 1 1 -96- City of Brooklyn Center I COMPARATIVE SCHEDULE OF GENERAL LONG-TERM DEBT December 31, 1990 December 31, 1990 1989 Amounts Available and to be Provided Amounts available in Debt Service Funds $4,588,753 $4,081,662 Amounts to be provided: From future tax increments 2,906,247 3,883,338 From future gas tax allocations 60,000 120,000 Total Available and to be Provided $7,555,000 $8,085,000 General Lonq-Term Debt Pavable General Obligation Bonds $950,000 $1,130,000 S ecial Assessment Bonds 745 000 970 000 p Tax Increment Bonds 5,860,000 5,985,000 Total General Long-Term Debt $7,555,000 $8,085,000 i 1 1 -97- City of Brooklyn Center SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 1990 General G.O. Special G.O. Tax Water Debt Obli4ation Bonds Assessment Bonds Increment Bonds Revenue Bonds Service Reauirements Year Princioal Interest Principal Interest Princiqal Interest Principal Interest Princi�al Interest 1991 $340,000 $58,445 $215,000 $31,775 $135,000 $457,650 $45,000 $3,510 $735,000 $551,380 1992 300,000 34,810 145,000 23,260 200,000 445,488 45,000 1,755 690,000 505,313 1993 310,000 11,780 110,000 17,158 240,000 429,282 660,000 458,220 7 gg4 100,000 11,912 285,000 409,685 385,000 421,597 i 1995 85,000 7,131 340,000 385,957 425,000 393,088 �0 1996 50,000 3,550 420,000 356,416 470,000 359,966 I 1997 40,000 1,100 420,000 323,325 460,000 324,425 ggg 430,000 289,780 430,000 289,780 1999 510,000 252,395 510,000 252,395 2000 595,000 208,195 595,000 208,i95 I 2001 690,000 156,795 690,000 156,795 2002 795,000 96,997 795,000 96,997 2003 800,000 32,400 800,000 32,400 $950,000 $105,035 $745,000 $95,886 $5,860,000 $3,844,365 $90,000 $5,265 $7,645,000 $4,050,551 City of Brooklyn Center, Minnesota STATISTICAL SECTION I 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. With the exception of Table 9(Computation of Direct and Overlapping Debt) and information concerning school districts in the Miscellaneous Statistical Facts section, all statisticaZ I information sources were internal City records. The source of Table 9 information was the Hennepin County Department of Finance. The sources of school district information were the various school districts. -99- City of Brooklyn Center TABLE 1 GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1) Last Ten Fiscal Years Community Fiscal General Public Public Health Parks and Economic Non- Transfers Total Year Government SafetY Works Services Recreation Deveioqment Deaartmental Out Exqenditures 1981 $910,131 $1,588,149 $1,176,447 $39,385 $1,162,878 $197,790 $250,000 $5,324,780 1982 1,007,781 1,901,839 1,213,941 36,244 1,122,299 247,755 5,529,859 1983 1,054,064 1,875,122 1,288,081 28,663 1,268,907 91,953 5,606,790 0 1984 1,112,173 1,985,108 1,383,039 30,437 1,319,298 337,624 6,167,679 1985 1,283,050 2,143,843 1,560,842 34,326 1,389,075 416,937 6,828,073 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 $162,271 314,475 8,502,109 I 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571 I 1990 $1,823,298 $3,474,108 $1,929,950 $114,633 $1,842,294 $169,942 $396,550 $9,750,775 i (1) Funds included in this table are the General Fund. I r �r rr w� r City of Brooklyn Center TABLE 2 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) Last Ten Fiscal Years General Fiscal Property Licenses Intergovern- Charges for Fines and Total Year Taxes Permits mental Services Forfeitures Misc. Transfers In Revenue 1981 $1,655,642 $207,100 $2,388,848 $728,828 $111,596 $188,284 $544,965 $5,825,263 1982 1,935,403 249,015 2,213,486 790,333 146,204 195,945 407,309 5,937,695 1983 2,133,859 328,019 2,459,133 859,928 154,812 244,433 489,111 6,669,295 1984 2,407,352 296,667 2,524,494 919,796 158,823 337,201 330,452 6,974,785 0 1985 2,444,153 387,806 2,618,957 979,543 187,045 348,316 311,926 7,277,746 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 1990 $3,854,798 $297,495 $3,201,888 $1,235,795 $215,804 $443,623 $174,925 $9,424,328 (1) Funds included in this table are the General Fund. City of Brooklyn Center TABLE 3 TAX LEVIES AND TAX COLLECTIONS (1) Last Ten Fiscal Years Collections Percentage Collections of Current of Levy of Prior Total Delinquent Year's Taxes Collected Year's Taxes Collections Delinquent Taues as Year During Fiscal During Fiscal During Fiscal Total as a�/o of Taxes a�/o of Collected Tax Levv,u Period Period Period Collections Tax LevY Receivable Tax Levv 1981 $2,746,020 $2,619,758 95.40% $27,183 $2,646,941 96.39% $235,032 8.56% 1982 2,965,702 2,854,688 96.26% 45,419 2,900,107 97.79% 300,627 10.14% 1983 2,482,369 2,420,772 97.52% 75,437 2,496,209 100.56% 286,787 11.55% 0 1984 2,836,968 2,721,413 95.93% 111,596 2,833,009 99.86% 290,746 10.25�0 N 1 1985 2,931,266 2,657,094 90.65% 178,709 2,835,803 96.74% 386,209 13.189/0 1986 2,886,824 2,849,382 98.70% 32,739 2,882,121 99.84% 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% 13,090 3,501,264 97.89% 105,521 2.95% 1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08% 84,948 2.42% 1990 $4,092,978 $3,$57,576 94.25% $12,241 $3,869,817 94.55% $221,097 5.40% (1) Funds included in this table are the General Fund, 69 Bldg Bonds, Park Bonds, and H.R.A. (2) Includes property taxes only; lodging tax and tax increments are excluded. r City of Brooklyn Center TABLE 4 ASSESSED VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY (1) Last Ten Fiscal Years 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Population 30,990 30.820 30.830 30,820 30.630 30,267 29,759 29.420 28,578 28,810 Real Property Assesaed value (2): Tax Tax City: �Ps�rtY C�nY Residential 582.133.535 574.268.430 i'75.252.072 578.112,774 581.072.128 590.912.548 591.929.246 590.162.927 511,834.805 510.133,274 Non-residential 80,826,961 104,715,944 122.389,087 124,305,853 128.444.994 125,109,658 139,433,999 154,031.355 19,707,624 18,185,832 area-wide anocacion (�.eso.s2�► (2.a��.sao� (�.��.2�) (s.3es,� (2.�sa �2,oe�.s�� (i.�.ssa) (s.taa.es�) (en.aa�) (i.�,z� 161,079,6� 178,626,744 196.183,916 199,052,171 205,382.909 213,924,673 230,017,381 238,045.801 30,564,588 24,953,871 Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,518 Total assessed value 161,079,6� 176,626,744 196,183,916 198,974.171 204,640,435 209,867,062 224.579.793 226,261.128 28,467,083 23.413,353 �l I Estimated Market Value 604,637,388 657.701,757 725,476,089 775,162,400 788,107,800 813,377,800 854,846,550 910,338,300 950,463,900 1,000,2�,000 I Personal Pr ert I Assessed value 4,027,036 4,113,767 3,973,587 4,148,728 4,278,221 4,291,916 4,298,001 4,510,313 190,298 530,528 0 w Estimated marketvalue 9,385,200 9,586,900 9.240,000 9,648,200 9.944,700 9,981,200 9,�0.700 10,489,100 3,827.500 10.810,520 Total Taxable Propertv Assessed value 5165.106.705 5180.740.511 Z200.157.503 Z203.122.897 5208.916.658 s214.158.978 t228.875.794 5230.771,441 528.657.382 523.943.879 =:s=----- ------a:: Estimated market value 5614.002.568 5�7.288.657 S'734.716,089 5784.810.800 5798.052.500 s823.359.000 5864.837.250 5920.825.400 s954.091.400 s1.010.879.520 eeeev---- saaeeeeex ____nee=e ��m _cxv ----xosaa _____namz ________s �I Assessed Value as a percent of I Estimated Market Value 26.899b 27.0996 27.24% 25.88% 28.18% 26.01% 28.4846 25.0896 3.00% 2.37% Per Capita Valuations Aseesaed Value 55.328 55.864 �.492 s6.561 56.821 57.076 s'7.�81 57.844 s1,003 5831 Estimated Market Value 519.813 t21.651 523.831 s'25.464 526.055 527.203 s29.081 531.299 s33.386 xi.5.088 {1) Souroe: City of Brooklyn Center Aseessing DepartmeM (2) The Min�esota Legislature changed the property tax system for taxes payable in 1989. The tax base of property was changed trom assessed values to tax capacity values. (3) The reduction in residential values is due to a cfiange in the state mandated formula f�om gross tax capacity to net tax capacity. City of Brookiyn Center TABLE 5 TAX RATES AND TAX LEVIES (1) Last Ten Fiscal Years TAX RATES IN MILLS (2) Hennepin School Districts County Total City, School, and County Year Vo-Tech No.286 No.279 No.281 No.11 Special No.286 No.279 No.281 No.11 Collectible Cit 2 Schaol Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka 1981 16.603 1.510 33.512 33.427 40.757 37.996 33.373 84.998 84.913 92.243 87.972 1982 16.397 1.469 38.781 42.993 50.524 46.847 33.567 90.214 94.426 101.957 96.811 1983 15.971 1.119 42.896 46.035 52.901 45.474 33.557 93.543 96.682 103.548 95.002 1984 17.096 1.446 49.965 54.909 58.326 55.225 35.007 103.514 108.458 111.875 107.328 '1985 16.506 1.490 49.332 51.199 56.100 52.830 34.443 101.771 103.638 108.539 103.779 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 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 0 TAX LEVIES IN DOLLARS Hennepin School Districts County Total City, Year Vo-Tech No.286 No.279 No.281 No.11 Sqecial Schools, Collectible City (2) School Earl Brown Osseo Robbinsdale Anoka Districts and County 1981 $2,746,020 $237,607 $1,939,916 $1,636,937 $2,058,145 $766,972 $5,925,084 $15,310,681 1982 2,965,702 265,508 2,422,618 2,061,005 2,606,004 881,745 6,066,917 17,269,499 1983 2,482,369 202,256 2,790,808 2,625,207 2,781,573 1,049,119 6,716,839 18,648,171 1984 2,836,968 287,933 3,328,173 3,090,749 3,178,504 1,279,696 7,085,080 21,087,103 1985 2,931,266 310,394 3,442,445 3,014,744 3,187,821 1,286,533 7,207,150 21,380,353 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 1989 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 24,407,347 1991 $4,670,606 $234,927 $4,169,240 $3,266,615 $4,365,729 $1,207,395 $8,992,605 $26,907,117 (1) Source: Hennepin County Department of Property Tax Public Records. (2) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center. (3) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989. r City of Brooklyn Center TABLE 6 SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years Percent Current Collections Total Special Percent Collection Collections Year Assessment of of Prior Total to Current Collected Billinas Amount Billinqs Years Collections LevY 1981 $395,439 $335,859 84.93% $95,963 $431,822 109.20% 1982 733,198 649,472 88.58% 95,962 745,434 101.67% 1983 981,733 908,531 92.54% 57,463 965,994 98.40% 1984 813,013 768,241 94.49% 79,617 847,858 104.29% 1985 715,185 698,756 97.70% 84,781 783,537 109.56% 1986 631,296 631,165 99.98% 11,953 643,118 101.87% 1987 572,851 552,168 96.39% 3,139 555,307 96.94Qlo 1988 556,028 526,594 94.71 2,723 529,317 95.20% 1989 562,484 545,242 96.93% 59,944 605,186 107.59% 1990 $504,682 $476,874 94.49% $14,327 $491,201 97.33% City of Brooklyn Center TABLE 7 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA Last Ten Fiscal 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 Service Fund Debt Values C apita 1981 30,990 $165,106,705 $3,235,000 $508,101 $2,726,899 1.65% $87.99 1982 30,820 180,740,511 3,040,000 606,062 2,433,938 1.35% 78.97 1983 30,830 200,157,503 2,800,000 678,318 2,121,682 1.06% 68.82 0 1984 30,820 203,122,897 2,545,000 628,786 1,916,214 0.94% 62.17 rn 1985 30,630 208,916,656 2,290,000 846,014 1,443,986 0.69% 47.14 1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49 1987 29,759 228,875,794 1,740,000 683,294 1,056,706 0.46% 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 Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per Year Population Value Debt Service Fund Debt Value Ca ita 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 r i City of Brooklyn Center Table 8 COMPUTATION OF LEGAL DEBT MARGIN December 31, 1990 Estimated rnarket value for taxes payable in 1990 $1,000,269,000 Debt limit, 2% of market value 20,005.380 Total bonded debt 7,645,000 Deductions (See Note 5): A. Bonds: 1. Special Assessment Bonds 745,000 2. State Aid Street Bonds 60,000 3. Utility Revenue Bonds 90,000 4. Tax Increment Bonds 5,860,000 6, 755, 000 B. General Debt Service Funds 448,846 Total Deductions 7,203,846 Total Debt Applicable to Debt Limit 441,154 Legal Debt Margin, December 31, 1990 $19,564,226 -lo�- City of Brooklyn Center TABLE 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1990 City's Share Governmental Unit Gross Debt Sinkinq Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $890,000 $448,846 $441,154 100.0% $441,154 Overlapping Debt: School Districts: No. 281 Robbinsdale 3,050,000 1,985,063 1,064,937 10.2% 108,624 No. 11 Anoka 33,908,605 3,623,250 30,285,355 5.9% 1,786,836 No. 279 Osseo 67,670,000 4,644,366 63,025,634 26.8% 16,890,870 No. 286 Brooklyn Center 40,000 40,000 0 100.0% 0 Area Vocational Technical School No. 287 2,000,000 823,390 1,176,610 4.9% 57,654 Metropolitan Transit 9,250,000 3,261,000 5,989,000 1.5% 89,835 Metropolitan Council (2) 78,570,000 24,789,912 53,780,088 1.5% 806,701 Metropolitan Airport (3) 0 0 0 0.0% 0 Hennepin County 118,530,000 6,055,853 112,474,147 2.7�/0 3,036,802 Hennepin County Park Reserve District 6,175,000 70,050 6,104,950 2.7% 164,834 Total Overlapqina Debt 319,193,605 45,292,884 273,900,721 22,942,156 Total Direct and Overlapping Debt $320,083,605 $45,741,730 $274,341,875 $23,383,310 (1) Includes only general obligation debt which is being repaid through property taxes. (2) Excludes $303,026,000 less $51,667,000 in sinking funds of Metropolitan Council issued G.O. Sewer Bonds. These bonds are supported from sewer charges to governments (including Brooklyn Center) in the metropolitan sewer system. (3) Excludes $154,400,000 less $37,909,000 in sinking funds of G.O. Airport bonds supported from airport user fees. Direct Overlapping Comparative Net Debt Ratios Charaeable to Citv Total Debt Debt I Debt to tax capacity value $23,943,879 97.66% 1.84% 95.82% Debt to market value $1,010,879,520 2.31 �/0 0.04% 2.27% Per capita debt, population 28,810 $811.64 $15.31 $796.33 I TABLE 10 City of Brooklyn Center I' RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Debt Service Total (1) Total (2) as a Percent Debt General of General Year Princiqal Interest Service Ex�enditures Expenditures 7.7 1981 $185, 000 $226, 785 $411, 785 $5, 324, 780 3 r 1982 195,000 224,100 419,100 5,529,859 7.58% 1983 240,000 210,620 450,620 5,606,790 8.04% 1984 255,000 250,132 505,132 6,167,679 8.19% 1985 255,000 251,095 506,095 6,828,073 7.41 1986 275,000 507,558 782,558 7,154,524 10.94% 1987(3) 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 530 000 992 1 11 2 9 750 775 11.45% $585, 5,99 I (1) For years 1981 through 1986, General Obligation Bonds and G.O. Tax Increment Bonds are included. From 1987 onward, Improvement Bonds, formerly Special Assessment Bonds, are also included. (2) The fund included in the expenditures column is the General Fund. (3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. I -io9- City of Brooklyn Center TABLE 11 SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscat Years Ratio of Net Net Revenue Gross Revenue to Debt 'Year Revenue E�enses(� Available Princiaal Interest Total Service 1981 $2,272,211 $1,189,203 $1,083,008 $40,000 $20,280 $60,280 17.966 :1 1982 2,242,053 1,565,291 676,762 40,000 18,720 58,720 11.525 :1 1983 2,195,913 1,465,713 73U,200 40,000 17,160 57,160 12.775 :1 1984 2,386,974 1,550,216 836,758 40,000 15,600 55,600 15.050 :1 1985 2,435,238 1,549,645 885,593 45,000 14,040 59,040 15.000 :1 1986 2,316,456 1,613,187 703,269 45,000 12,399 57,399 12.252 :1 1987 2,330,310 1,679,915 650,395 45,000 10,786 55,786 11.659 :1 1988 2,548,849 2,047,568 501,2$1 45,000 8,889 53,889 9.302 :1 1989 2,824,004 2,075,841 748,163 45,000 7,180 52,180 14.338 :1 1990 $2,983,544 $2,157,722 $825,822 $45,000 $5,425 $50,425 16.377 :1 (1) Excludes depreciation and interest on bonds. r -110- i i r■� r City of Brooklyn Center TABLE 12 PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years Commercial Residential Construction (1) Construction (1) Property Value (2) Bank Year Value Units Value Commercial Residential Non-Taxable �osits(� 1981 $12,926,950 33 $1,157,000 $215,536,256 $392,096,600 $52,828,091 N/A 1982 2,497,700 70 2,055,000 228,523,271 483,354,800 52,828,091 N/A 1983 5,342,000 140 8,677,800 235,045,689 490,430,400 52,828,091 N/A 1984 6,037,900 77 8,954,300 268,460,800 506,701,600 52,828,091 N/A i 1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 N/A I 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 (1) Construction values were supplied by the City of Brooklyn Center Planning Department. (2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department. (3) Bank deposits were supplied by the banks. City of Brooklyn Center TABLE 13 PRINCIPAL TAXPAYERS December 31, 1990 Percentage 1990 of total Market Market Taxpavers Tv�e of Business Valuation Value Equitable Real Estate Society of America Brookdale Shopping Center $55,228,200 5.46% Ryan Construction Office Buildings 21,717,400 2.15% Shingle Creek Plaza II Land, Warehouse and Office I Buildings 13,406,700 1.33% Commercial Partners Brookdale Square Shopping Center 12,322,400 1.22% Norman Chazin Apartment Buildings 12,231,100 1.21% Robert H. Bradley Office and Warehouse Building 9,600,400 0.95% Sears Roebeck and Company Sears Department Store 9,096,000 0.90% Ci na Real Estate Funds Office B il in 9 u d gs 8,794,400 0.87 /o Ltd. Partnership Twin Lake North Company Apartments 8,325,000 0.82% Plaza Real Estate Partners Hotel/Motel 8,288,300 0.82% Total Market Value $159,009,900 15.73% r 1 M rk a et values were supplied by the City of Brooklyn Center Assessing Department. -112- City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE Effective January 1, 1991 (Continued next page) Policy Period Tvpe of Coveraae and Details From To Liabilitv Limits I. Statutorv Liabilitv to Emnlovees a. Workers' Compensation 01-01-91 01-01-92 Statutory (participant in the League of Minnesota Cities Insurance Trust Self-Insured Workers' Compensation Program) II. Liabilitv to the Public a. Comprehensive general liability incfude the fottowing additional coverages: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction or invasien of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 01-01-91 01-01-92 $600,000 combined single limit (2) Property damage 01-01-91 01-01-92 $600,000 combined single limit (3) Personal injury 01-01-91 01-01-92 $600,000 combined single limit b. Automobite liability, comprehensive 01-01-91 01-01-92 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence c. Liquor stores' dram shop 01-01-91 01-01-92 $1,000,000 each common cause d. Golf Course and Central Park 04-01-91 10-31-91 $1,000,000 each common liquor liability cause e. Personal accident, Council 03-01-91 03-01-92 $100,000 accidental death Commissions $400/week short term disability f. Personal accident, Volunteers 05-01-91 05-01-92 $100,000 accidental death $400/week short term disability $1,000 Medical -113- City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 1991 Buildings and Policy Period Structures Content: (Replacement (Replacement Tv�e of Coveraqe and Details From To Cost� Cost� III. Insurance on Citv Propertv 01-01-91 01-01-92 a. Public and institutional property, ali risk, blanket $24,036,400; $1,000 deductible replacement value on buildings. (1) Civic Center $5,457,000 $547,000 (2) East Fire Station $536,000 $60,000 (3) Municipal Service Garage $1,206,000 $236,000 (4) Elevated Water Towers 3 locations $3,104,000 $0 (5) Park Shelter Buildings 17 locations $1,362,000 $55,000 (6) Pump Houses 7 locations $471,000 $127,000 (7) Lift Stations 9 locations $622,000 $71,000 (8) Meter Station $15,000 $0 (9) Storage Building $360,000 $0 (10) Outdoor lighting systems 7 locations $316,000 $0 (11) Liquor Store and Fire Station $517,000 $211,000 (12) Humboldt Liquor Store $230,000 $171,000 (13) Leased Liquor Store $45,000 $215,000 (14) Movable Properties $0 $186,000 (15) Pedestrian Bridge $476,000 $0 (16) Picnic Shelter $51,000 $0 (17) Earle Brown Heritage Center $6,100,000 $1,121,000 (18) Centerbrook Golf Course Club House $284,000 $22,000 (19) Centerbrook Golf Course Garage $11,000 $2,000 (20) Lions Park Concession Stand $32,000 $3,000 Liabilitv Limits b. Boiler and machinery 01-01-91 01-01-92 $3,000,000 per accident c. Automotive physical damage 01-01-91 01-01-92 (1) Comprehensive ACV $250 deductible (2) Collision ACV $500 deductible IV. Criminal Acts a. Faithful performance blanket position $100,000 per loss b. Money and securities (broad form) Various c. Depositor's forgery $100,000 -114- I' City of Brooklyn Center TABLE 15 DEMOGRAPHIC STATISTICS Last Ten Fiscal Years School Enrollments (1) I No 286 Fiscal No 11 No 279 No 281 Earle Unemployment Year Population Anoka Osseo Robbinsdale Brown Rate 1981 30,990 1,292 2,442 700 1,327 6.4% I 1982 30,820 1,238 2,263 630 1,298 6.5% 1983 30,830 1,300 2,184 622 1,311 6.4% 1984 30,820 1,103 2,039 700 1,310 4.8% 1985 30,630 1,032 2,003 567 1,326 4.5% 1986 30,267 1,011 1,838 555 1,361 3.9% 1987 29,759 989 1,674 570 1,376 4.1 1988 29,420 989 1,674 563 1,456 3.5% 1989 28,578 671 1,674 563 1,652 3.5% 1990 28,810 642 1,616 540 1,747 3.2% 1 School enroiiment data was su lied b the h Is. I PP Y sc o0 (2) Minnesota Department of Jobs and Training, Research and Statistics Dept. -115- TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 1990 Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of G�vernment Council-Manager Fiscal Year Begins January 1 Area of City 8 1/2 square miles Miles of Streets City 104.25 County 6.49 State 10.79 Miles of Storm Sewers 40.71 Number of Street Lights 994 Building Permits: Number Estimated Issued Cost 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 1985 521 32,328,938 1984 545 15,606,354 1983 660 16,096,550 1982 516 5,968,824 1981 518 $16,190,205 City Employees as of December 31, 1990 Regular full-time 137 Temporary or part-time 233 Total 370 Fire Protection: Number of Stations 2 Number of Full-time Employees 1 Number of Volunteer Firemen 32 Police Protection: Number of Stations 1 Number of Full-time Employees 51 Number of Part-time Employees 19 -116- t City of Brook{yn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 1990 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 17 Park shelters 17 Ice skating rinks 10 Hockey rinks 6 Softball diamonds 26 Baseball diamonds 6 Tennis courts 10 Basketball courts 15 Municipal Water Plant: Number of connections 8,916 Average daily consumption in gallons 3,658,000 Peak daily consumption in gallons 9,290,000 Plant capacity gallons per day 16,500,000 Miles of water mains 112.22 Number of fire hydrants 827 Number of wells 9 Number of elevated reservoirs 3 Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.55 Municipal Sewer Plant; Number of connections 8,806 Miles of sanitary sewer 104.73 Daily disposal capacity in gallons 8,497,440 Number of lift stations 10 Residential rate per quarter $31.50 I r Municipal Liquor Stores (Off-sale): Number of owned stores 2 Number of leased stores 1 1990 sales $2,455,551 Elections: Last General Election November 6, 1990 Registered voters 18,339 Votes cast 11,313 Percentage of registered voters voting 64% Last Municipal Election 1990 Registered voters 18,339 Votes cast 11,313 Percentage of registered voters voting 64% -117-