HomeMy WebLinkAboutCAFR-1992 COMPREHEN�IVE
ANNUAL
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1992
GERALD G. SPLINTER, CITY MANAGER
Prepared by
THE DEPARTMENT OF FINANCE
Charles R. Hansen, Director
1
(Member of Government Finance Officers
Association of the United States and Canada)
Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1992
TABLE OF CONTENTS
Exhibit Page
Number Number
I. INTRODUCTORY SECTION
1 Title Page
Table of Contents
City Officials 1
Organization Chart 2
City Manager's Letter 3
Finance Director's Letter 4- 13
Certificate of Achievement 14
I II. FINANCIAL SECTION
Independent Auditors' Report 15
A. General Purpose Financial Statements
(Combined Statements Overview):
Combined Balance Sheet All Fund Types and
Account Groups 1 17 18
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances All Governmental
Fund Types 2 19
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances Budget And Actual
General and Special Revenue Funds 3 20
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings Proprietary
Fund Types 4 21
Combined Statement of Cash Flows
Proprietary Fund Types 5 22
Notes to Financial Statements 23 49
Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1992
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
B. Combining, Individual Fund and Account Group
Statements and Schedules:
General Fund: t
Balance Sheet
A-1 51
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual A-2 52
Schedule of Revenue Other Financing
Sources Budget and Actual S-1 53 55
Schedule of Expenditures Budget and Actual 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 65
Debt Service Funds:
Combining Balance Sheet C-1 67
Comb'
ining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 68
Capital Projects Funds:
Combining Balance Sheet D-1 70
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 71
Project-Length Schedule of Construction
Projects Capital Improvements Fund S-3 72
Project-Length Schedule of Construction Projects
Municipal State Aid Construction Fund S-4 73
Project-Length Schedule of Construction Projects
Special Assessment Construction Fund S-5 74
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1992
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Schedule of General Fixed Assets
By Function and Activity S-7 97
Schedule of Changes in General Fixed Assets
By Function and Activity S-8 98
General Long-Term Debt Account Group:
Comparative Statement of General Long-Term Debt H 100
Summary of Debt Service Requirements
to Maturity I 101
III. STATISTICAL SECTION Table Page
Number Number
General Governmental Expenditures by Function 1 103
General Governmental Revenues and Other
Financing Sources By Source 2 104
Tax Levies and Tax Collections 3 105
Assessed Value and Estimated Market Value of All
Taxable Property 4 106
Direct and Overlapping Tax Rates and Tax Levies 5 107
Special Assessment Billings and Collections 6 108
Ratio of Net Bonded Debt to Assessed Value and
Net Debt Per Capita 7 109
Computation of Legal Debt Margin 8 110
Computation of Direct and Overlapping Debt 9 111
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures 10 112
Schedule of Water Revenue Bond Coverage 11 113
Property Value, Construction and Bank Deposits 12 114
Principal Taxpayers 13 115
Schedule of Insurance Coverage 14 116-117
Demographic Statistics 15 118
Miscellaneous Statistical Facts 16 119-120
Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31. 1992
TABLE OF CONTENTS
5tatement/
Schedule Page
Number Number
Enterprise Funds:
Combining Balance Sheet E-1 76 77
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings E-2 78 79
Combining Statement of Cash Flows E-3 80 81
Statement of Revenues, Expenses, and Changes in
Retained Earnings Municipal Liquor Fund E-4 82
Statement of Revenues, Expenses, and Changes
in Retained Earnings Golf Course Fund E-5 83
Statement of Revenues, Expenses, and Changes
in Retained Earnings Earle Brown
Heritage Center Fund E-6 84
Statement of Revenues, Expenses, and Changes in
Retained Earnings Recycling Refuse Fund E-7 85
Statement of Revenues, Expenses, and Changes
in Retained Earnings Water Utility Fund E-8 86
Statement of Revenues, Expenses, and Changes
in Retained Earnings Sanitary Sewer Fund E-9 87
Statement of Revenues, Expenses, and Changes
in Retained Earnings Storm Drainage Fund E-10 88
Internal Service Funds:
Comparative Balance Sheet F-1 90
Comparative Statement of Revenues, Expenses and
Changes in Retained Earnings F-2 91
Comparative Statement of Cash Flows F-3 92
Agency Funds:
Statement of Changes in Assets and Liabilities
Employee Deferred Compensation Fund G 94
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
By Sources S-6 96
Citv of Brooklvn Center
CITY OFFICIALS
For the Year Ended December 31. 1992
ELECTED OFFICIALS
Term of Office Term Expires
Mayor Todd Paulson Four Years 12/31/94
Councilmember Celia Scott Four Years 12/31/94
Councilmember David Rosene Four Years 12/31/94
Councilmember Barbara Kalligher Four Years 12/31/96
Councilmember Kristen Mann Four Years 12/31/96
APPOINTED OFFICIALS
City Manager Gerald G. Splinter
City Clerk Gerald G. Splinter
City Treasurer Charles R. Hansen
City Attorney Holmes Graven
City Prosecutor Carson Clelland
Department Heads:
Finance Charles R. Hansen
Public Works Sy Knapp
Police Trevor Hampton
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 Dave Peterson
Health Officer Duane Orn, M.D.
Fire Marshall Ronald Boman
Civil Defense Coordinator Ronald Boman
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ORGANIZATION CHART COUNCIL-MANAGER PLAN
City of Brooklyn Center, Minnesota
ADVISORY
CHARTER COMMISSION
Various Ad Hoc Committee ELECTORATE (appointed by district court)
C ADVISORY
Housing Commission CITY ATTORNEY
i
ADVISORY
CITY COUNCIL
Human Rights Resources Commission PERSONNEL COORDINATOR
C ADVISORY
Parks Recreation Commission CITY MANAGER EDA COORDINATOR
N
CITY CLERK
ADVISORY
Planning Commission DIRECTOR EAR�E
Emergency BROWN
Prepared- HERITAGE
C ADVISORY ness CENTER
Financial Commission
I I I I_ I I I I I
DIRECTOR DIRECTOR DIRECTOR 1 CHIEF DIRECTOR
Plannmg
DIRECTOR Finance I CHIEF 1 MANAGER ASSESSOR
and of Department Police of Volunteer Liquor Public Tax
Ins ections Recreation Cit Environmental Fire Works Assessment
p Y Department Store
Department 1 1 Treasurer J Health Department Department' Department l
i
—1 1. I I I I
Golf �Recreation
Course Programs
Park 1 Government� Engineering Street Public
Maintenance Buildin s Utilities
community g Division Division Division
Centerbrook Division Division
Center
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CITY 6301 SHINGLE CREEK PARKWAY
oF BROOKLYN CENTER, MINNESOTA 55430
B ROOK LY N TELEPHONE: 569-3300
C ENTER FAX: 569-3494
EMERGENCY POLICE FIRE
911
June 14, 1993
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,
1992. 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 nine years have received
this award. It is my belief that the accompanying report meets
program standards, and it will be submitted to the Government
Finance Officers Association for review.
Respectfully submitted,
,.4/ `t"lZ �i°�•�
Geral G. Splinter
City anager
1986ALL�AMEPoCACRY
CITY 6301 SHINGLE CREEK PARKWAY
oF BROOKLYN CENTER, MINNESOTA 55430
B ROOK LY N TELEPHONE: 569-3300
C E N T ER FAX: 569-3494
EMERGENCY POLICE FIRE
911
June 14, 1993
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, 1992, is hereby
submitted. Responsibility for both the accuracy of the data, and
the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data are accurate in all material respects and
are reported in a manner designed to present fairly the financial
position, results of operations, and cash flows of the various
funds and account groups of the city. All disclosures necessary to I
enable the reader to gain an understanding of the government's
financial activities have been included.
The comprehensive annual financial report is presented in three
sections: introductory, financial, and statistical. Included in
the introductory section is this transmittal letter, the
government's organizational chart and a list of principal
officials. The financial section includes the general purpose
financial statements and the combining and individual fund and
account group financial statements and schedules, as well as the
independent auditors' report on the general purpose financial
statements and schedules. The statistical section includes
selected financial and demographic information, generally presented
on a multi year basis.
The city is required to undergo an annual single audit in
conformity with the provisions of the Single Audit Act of 1984 and
U.S. Office of Management and Budget Circular A-128, Audits of
State and Local Governments. Information related to this single
audit, including the schedule of federal financial assistance,
findings and recommendations, and independent auditors' reports on
the internal control structure and compliance with applicable laws
and regulations, are issued as a separate report.
1 ,�esu��cACm
�'���I'�
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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 known 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 expenditures and capital outlays of the General Fund.
REPORTING ENTITY
In accordance with Governmental Accounting Standards Board
pronouncements, the City's financial statPments 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 Department Relief Association.
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
association pays benefits directly to its members. Because the
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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. In spite of this, there has been some commercial
construction, including an Investor's Savings Bank, an Evergreen
Homes elderly assisted living facility, a Champion Auto Store, and
an addition to the Medtronic Inc. laboratory.
The greatest threat to the City's financial condition seems to come
from the State of Minnesota. The State appears to have made open
ended commitments to health care, nursing home care, and welfare.
These programs are experiencing rapidly increasing costs, causing
annual budget crises for the State. Even though the portion of the
sales taxes collected by the State and shared with cities represent
only about 5% of the State budget, that is where it appears the
State turns first to make cuts. This always happens after the
cities have set their budgets, leaving them no chance to raise
other revenues. For 1992, instead of cutting the shared taxes, the
State extended the 6.5% sales tax to city purchases.
MAJOR INITIATIVES
During 1990, the City began reconstruction of 69th Avenue North, a
major collector street on the north side of the City. This four
year, $6,000,000 project will widen the street to provide turn
lanes, better through traffic capacity, and buffer strips between
the street and neighborhood. State aid street bonds in the amount
of $3,000,000 were sold in September 1991 to help fund the project.
Other major funding is from state shared gasoline taxes.
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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 30 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.
In order to understancl 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. As a result of this study, the City has added a
housing coordinator and launched a new program to redevelop
blighted houses in older neighborhoods. Funding is from the
H.R.A.'s tax revenue and the interest off a$1,000,000 account that
was set aside from surplus funds from a debt service fund.
The City again retained Maxfield Research Group in 1991 to study
office, retail, industrial and hospitality markets and make
recommendations. Five districts have been evaluated due to their
prominence in the community, and perceived under utilization. The
study identified numerous opportunities for redevelopment, mostly
for industrial sites, which will be pursued in the coming years.
In 1992, the cities of Blaine and Brooklyn Park, joined Brooklyn
Center in a business retention and market expansion study. Its
purpose is to analyze local business needs and recommend ways to
develop comprehensive marketing and promotion plans. By involving
local businesses in a partnership to strengthen them, we hope to
stimulate development, create jobs and build the local tax base.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and
maintaining an internal control structure designed to ensure that
the assets of the City are protected from loss, theft or misuse and
to ensure that adequate accounting data are compiled to allow for
the preparation of financial statements in conformity with
generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute,
assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments by management.
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
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those programs. This internal control structure is subject to
periodic evaluation by management and the independent auditors.
As a part of the City'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 City has complied with
applicable laws and regulations. The results of the City's single
audit for the fiscal year ended December 31, 1992 provided no
instances of material weaknesses in the internal control structure
or significant violations of applicable laws and regulations.
Budaetina Controls. In addition, the City maintains budgetary
controls. The objective of these budgetary controls is to ensure
compliance with legal provisions embodied in the annual budget
appropriation approved by the city's governing body. Activities of
the general fund and special revenue funds are included in the
annual appropriated budget. Project-length 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 department.
Appropriations lapse at year end and generally are not
reappropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the
financial section of this report, the City continues to meet its
responsibility for sound financial management.
General Fund Functions. The following schedule presents a summary
of general fund budgeted revenues for 1993, and actual revenues for
the fiscal,year ended December 31, 1992, compared to 1991.
General Fund Revenues Other Financina Sources 1992
Increase
1993 1992 1991 Decrease
BUDGET ACTUAL ACTUAL From 1991
Taxes $5,350,325 $4,291,322 $4,274,089 17,233
License permits 300,230 332,186 311,751 20,435
Intergovernmental
revenue 3,142,142 3,133,495 2,926,570 206,925
Charges for
services 1,071,716 794,876 881,213 -86,337
Court fines 200,000 148,701 202,090 -53,389
Misc. revenues 224,000 301,771 360,800 -98,453
Other financing
sources 295,000 620,000 877,477 -218,053
TOTAL $10,583,413 $9,622,351 $9,833,990 $-211,639
The total revenues decreased from the prior year because the city
changed an accounting practice for wages reimbursed by enterprise
and capital projects funds. These wages previously were reported as
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expenditures in the General Fund, the reimbursement as both a
revenue in General Fund and an expense in the other fund. To avoid
this double counting of expenditures, they are now only shown in
the enterprise or capital project funds. This change eliminated
$602,100 from both revenues and expenditures that otherwise would
have been in the General Fund. Other financing sources decreased
because the City issued $480,000 of certificates of indebtedness in
1992, compared to $700,000 in 1991, to finance capital outlays.
The following schedule presents a summary of general fund budgeted
expenditures for 1993, and actual expenditures for the fiscal year
ended December 31, 1992, compared to 1991.
General Fund Ext�enditures 1992
Increase
1993 1992 1991 -Decrease
__BUDGET_ __ACTUAL_ __ACTUAL_ From 1991
General Govt $1,667,472 $1,797,895 $1,591,108 $206,787
Public Safety 4,135,405 3,938,920 3,950,862 -11,942
Public Works 1,764,833 1,594,190 1,827,052 -232,862
Community Serv 45,647 114,579 104,706 9,873
Parks Recr 2,185,717 1,783,811 1,870,385 -86,574
Economic
Development 190,000 187,606 177,179 10,427 r
Non-de artmental 594 339
p 273 273 414 149 -140 876
TOTAL $10,583,413 $9,690,274 $9,935,441 $_245,167
General Government expenditures increased due to increased capital
outlays and professional services. Public Works decreased because
of the accounting change described above. Non-departmental
decreased because workers compensation insurance premiums were
allocated out to operating departments for the first time in 1992.
GENERAL FUND BALANCE
When the 1992 General Fund budget was adopted by the City Council,
a portion of the fund balance in the amount of $315,613 was
dedicated to finance 1992 appropriations. The fund balance
actually decreased by only $67,923 or 1.3� in 1992. The ending fund
balance of $5,040,652 is the equivalent of five months of
expenditures for the 1993 budget. Property taxes and inter-
governmental revenue represent 80% of the budgeted general fund
revenue for 1993. 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 total revenues in the first six months of the year.
In recognition of this fact, a portion of the fund balance is being
designated for working capital. The unreserved, undesignated fund
balance is zero as a result of this designation.
The City compensates all employees upon termination for unused
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vacation and one third of unused sick time. Such pay is accrued as
a liability and an expenditure/expense as it is earned in all
funds.
ENTERPRISE OPERATIONS
The City's enterprise operations are comprised of seven separate
and distinctive activities: Liquor stores, Golf Course, Earle
Brown Heritage Center, Recycling, Water utility, Sanitary Sewer
utility, and Storm Drainage utility. The liquor operation is
composed of three stores. Two are city owned and one 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 as a result of the remodeling.
Centerbrook Golf Course began operating in 1988 and began operating
at a profit since 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 it has begun to pay 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 major concern in Minnesota. State and county mandated
goals for the diversion of garbage to recycling programs took
effect in 1989. In response, the City opened a Recycling and
Refuse Fund as an enterprise fund. So far it is operating a
recycling program. Expansion into garbage collection will take
place when there is clear advantage to be achieved by it. Goals
for the recycling program are being met.
The Water and Sanitary Sewer utilities are largely developed and
already reach all parts of the City. Rates for both water and
sanitary sewer are being increased each year to cover inflation and
the need for new capital outlays. Three-fourths of the sewer
operating expenses are fees paid to the Metropolitan Waste Control
Commission for sewage treatment and those fees increased 4.7% in
1992. Planned rate increases should be sufficient to keep them
both profitable.
During the 1980s, the State of Minnesota passed legislation that
requires cities to take greater responsibility for controlling
storm water runoff. In response to this, the City created a Storm
Drainage Utility Fund. Its fee structure is based upon the amount
'i of water discharged into the storm sewer system. During the first
two years, this utility will concentrate on doing an engineering
study to determine where problems exist with the existing system of
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storm sewers and the storm water runoff they need to handle. Then
construction of additional holding ponds and storm water facilities
will begin.
AGENCY FUND
The Deferred Compensation Agency Fund accounts for the I.C.M.A.
Retirement Corporation plan with a market share value totaling
$2,241,152 for City employee plan members at year end.
DEBT ADMINIST
RATION
At December 31, 1992, the City had seven debt issues outstanding.
These issues included $310,000 of general obligation bonds,
545 000 of certificates of indebtedness 2 885 000 of state aid
street bonds, $15,110,000 of tax increment debt with government
commitment and $385,000 of special assessment deb
t with a
contingent liability. The City has an A-1 rating from Moody's
Investors Service. Under current state statutes, general
obligation bonded debt issuances are subject to a legal limitation
based on 2.0 percent of total estimated value. As of December 31,
1991, the general obligation bonded debt of $310,000 was well below
the legal limit of $20,243,586 and debt per capita equalled minus
$6.79 because of cash in the debt service fund, compared to $4.29
at December 31, 1991. One bond issue was sold during the year. It
was General Obligation Tax Increment Refunding Bonds of 1992, for
$4,270,000. Certificates of Indebtedness were sold in the amount
of $480,000 to finance the purchase of capital equipment in the
General Fund. These certificates will be repaid over three years
from property taxes.
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 8.3
percent to a low of 3.2 percent. Interest earned during 1992
amounted to $2,026,732 compared to $2,139,499 during 1991. 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 by federal depository insurance or
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.
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As described in Note 2, the City had $23,260,000 of investments
listed in Credit Risk Category 3, as of December 31, 1992. This is
in contrast to past years when all investments were in Credit Risk
Category 1. The change occurred due to the issuance of the
Implementation Guide to GASB Statement 3. The Auditors reviewed
this area in light of the new pronouncement and found that the
insurance of the custodian of City owned securities did not
adequately protect the City in the event of bankruptcy of the
custodian. It previously had been the understanding of the City
and the Auditors that this insurance was adequate.
The City is working with the custodian to see if their insurance
can be improved, or an alternative arrangement made for custody of
securities, so as to remove any risk to the City.
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, 1991.
In order to be awarded a Certificate of Achievement for Excellence
in Financial Reporting, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial
report, whose contents conform to program standards. Such reports
must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year
only. We believe our current report continues to conform to
Certificate of Achievement Program requirements, and we are
submitting it to GFOA to determine its eligibility for another
certificate.
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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. We would
also like to thank the Mayor, City 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,
G�uv� R N
Charles R. Hansen
Director of Finance
�',�,�»,.e-�, I�' f
Timothy R. Johnson
Assistant Director of Finance
r
-13-
Certificate of
1
Achlevement
1
for Exce��ence
in Flnancla_
1
Ae
g
1
Presented to
Clty of Brook_yn Center,
1
Minnesota
For its Com rehensive Annual
p
Financial F�eport
for the Fiscal Year Ended
December 31, 1991
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
CE OFF
k�� OF iHE
UNfIED STATES y
W �4 y
G1NA0A President
6 CORI'OWUION
q� �1F.16II.
CNiCA6a
Executive Director
1
1
�e oi�e
Touch�
400 One Financial Plaza
120 South Sixth Street
nn,.,� G�nn� A
INDEPENDEN i AUDITORS' REPORT
�I�he I Iun��rable Ivlayor and L1emt�t�r�
of the City Council of tlle
City of Brooklyn Center, Minnesota
We have audited the accompanying ger���rai },�:rf��>,� iinanci�i s���t������ent� <�t the �;i�y ��1�
Brooklyn Center, Minnesota (the City) as of Derember 31, 1992 and for the year then ��n�it�ci,
listed in Section II of the foregoing table of contents. These general ��urpose financial
statements are the responsibility of the City's management. C�ur responsihility is t�� ex�,rc�� ar;
opinion on these general purpose financial statements based on our audit.
We conducted our audit in acc
ordanre with generally accepted auditing stanc�arcis an�i
Governmerit Auc�iting Star�dards, issued by the Comptroller General of the tJnited StateS. �I h�>ti��
standards require that we plan and perform the audit to obtain reasonable assurance about
whether tlie general purpose financial statements are free of material misstatement. An auciit
inrludes examining, on a test basis, evidence supporting the amounts and disclosures in thc
general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating th��
overall financial statement E�resentati<��1. ���c• 1��_�lic�e lhat <�ur auciil E�r<�vides a rea,c�n�,hle t,a�i5
for our opinion.
In our opinion, surh general purpose finailcial stacements present fairly, in all material
respects, the financial position of the City of Brooklyn Center, Minnesota at December 31,
1992 and the results of its operations and cash flows of its proprietary fund types for the year
then ended in conY��rmily with generall� acceE�t�ci accountin�; princi}�le,.
Our audit was conducled fc>r lhe purpc�5t <>1 (�,rming an o�inion on the general purpose
financial statements taken as a whole. T11e acc�mpanying combining and individual fund and
account group financial statements and schedules listed in the foregoing table of contents,
which are also the responsibility of the City's management, are presented for purposes ot`
additional analysis and are not a required part of the general purpose financial statements oi
the C:ity. Such financial statements and schedules have been subjected to the auditing
procedures applied in our audit of the general purpose financial statements and, in our
opinion, are fairly stated in all material respects when considered in relation to the general
purpose financial statements taken as a whc�l��.
April 16, 1993
DeloitteTouche
Tohmatsu
I�ernational
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financial statements are intended to provide a
financial overview of municipal operations. These reports are at
a summary level and include that data needed to control and analyze
current operations to determine compliance with legal and budgetary
limitations and to assist in the financial planning process.
t
1
1
�1
1
-16-
City of Brooklyn Center EXHIBIT 1
All Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued next page)
December3l, 1992
Fiduciary Totals
Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only)
General General
Special Debt Capital Internal Fixed Long-Term December 31,
General Revenue Service Proiects Enterprise Service Agency Assets Debt 1992 1991
ASSETS
Cash, cash equivalents and I I
i�vestments (Notes 2 &3) $5,939,004 $37,303 $7,279,029 $11,075,818 $4,201,398 $1,017,036 $29,549,588 $27,772.330
Receivables:
Accounts 74,079 719 1,745 791,831 868,374 752,241
Delinquent Taxes (Note 1J) 319,112 21,019 11,068 351,199 249,882
v Special assessments:
Deferred 31,639 586,902 1,095,734 91,806 1,808,081 2,267,454
Delinquent 1,767 16,016 24,422 3,839 48,04A 35,056
Due from other funds (Note 11) 206,389 208,389 66,922
Due from other governments 9,561 208,389 939,788 104,958 1,280,897 1,010,882
Inventories and supplies (Note 1 G) 283,961 283,981 315,085 j
Prepaid expenses 148,588 148,588 125,186 I
Interfund advances (Note 11) 105,074 1,872,270 1,977,34k 2,035,038
Restricted investments(Note 1H) 1,000,000 4,000,000 5,000,000 5,121,755
Investments for deferred compensation
plan at market (Note 13) $2,241,152 2,241,152 2,046,095
Property, plant and equipment (Note 4) 33,590,497 $15,151,851 48,742,348 46,535,093
Less accumulated depreciation (7,284,180) (7,284,190) (6,482,65�
Amount avaifable in Debt Service Funds $7,279,029 7,279,029 3,634,878
Amount to be provided for General Long-
Term Debt 11,955,971 11,955,971 12,730,122
Total Assets $6,446,830 $277,817 $7,902,966 $16,227,234 $35,932,689 $1,017,036 $2,241,152 $15,151,851 $19,235,000 $104,432,575 $98,235,362
(See notes to financial statements)
City of Brooklyn Center EXHIBIT t
Ail Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued from prior page)
December 31, 1992
Fiduciary Totals
Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only)
General General
Special Debt Capital Internal Fixed Long-Term December3l,
LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Proiects Enterprise Service A�ency Assets Debt 1992 1991
Liabilities
Accounts payable $277,406 $6,533 $86,654 $294,177 $664,770 $1,237,828
Due to other funds (Note 11) 206,389 206,389 66,922
Accrued salaries and wages 111,371 1,522 18,023 $191,090 322,006 512,841
Accrued vacation sick pay (Note 1 I) 528,290 39,901 568,191 559,497
Intergovernmental payable 49,671 22,880 19,326 91,877 0
Temporary improvement notes (Note 3) 1,525,000 1,414,857 2,939,857 3,413,461
Deferred revenue 489,111 33,407 $623,937 2,069,235 3,215,690 3,192,899
Interfund loans 698,143 1,279,201 1,977,344 2,035,037
Revenue bo�ds payabie (Note 5) 0 45,000
Cert. of indebtedness 8� G.O. bonds payable (Note 5) 855,000 855,000 1.060,000
G.O. state aid street bonds payable (Note 5) 2,885,000 2,885,000 3,000,000
Speciai assessment bonds payable (Note 5) 385,000 385,000 530,000
Tax increment bonds payabie (Note 5) 15,110,000 15,110,000 11,775,000
Deferred compensation funds held for participants (Note 13) $2,241,152 2,241,152 2,046,095
l i
Total Liabilities 1,406,178 2,519,143 623,937 3,595,148 1,650,628 191,090 2,241,152 19,235,000 31,462,276 29,474,580
Equitv and Other Credits
Contributed capitat (Note 21,874,890 21,874,890 22,067,103
i Investment in general fixed assets $15,151,851 15,151,851 14,243,174
Retained earnings:
Reserved:
Debt retirement 0 121,755
Special assessments 95,645 95,645 108,378
Plant expansion (Note 1 H) 4,000,000 4,000,000 4,000,000
Unreserved 8,311,526 825,946 9,137,472 8,115,774
Fund Balances (Deficits):
Reserved:
Debt service 7,279,029 7,279,029 3,634,878
Unexpended appropriations 1,057,958 1,057,958 1,142,651
Dedicated housing account 1,000,000 1,000,000 1,000,000
Interfund loans 105,074 1,872,270 1,977,344 2,035,038 I
Bond proceeds 562,130 562,130 2,082,073
Unreserved:
Designated:
Working capital 4,899,499 4,899,499 4,656,444
Unexpended appropriations 36,079 36,079 347,057
Undesignated (2,241,326) 8,139,728 5,898,402 5,226,457
TotalEquityandOtherCredits 5,040,652 (2,241,326) 7,279,029 12,632,086 34,282,061 825,946 15,151,851 72,970,299 68,760,782
I
I TOTAL LIABILITIES, EQUITY OTHER CREDITS $6,446,830 $277,817 $7,902,966 $16,227,234 $35,932,689 $1,017,036 $2,241,152 $15,151,851 $19,235,000 $104,432,575 $98,235,362
(See notes to financial statements)
City of Brooklyn Center EXHIBIT 2
All Govemmental Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES lN FUND BALANCES
For the Year Ended December 31, 1992
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 1992 1991
Taxes and special assessments $4,291,322 $1,397,075 $898,227 $502,804 $7,089,428 $7,781,185
Lice�sesandpermits 332,186 332,186 311,751
Intergovernmental 3,133,495 251,747 157,200 794,617 4,337,059 5,072,162
Charges for services 794,876 18,770 813,646 930,957
Court fines 148,701 148,701 202,090
Investment earnings 262,347 1,205 244,852 922,578 1,430,982 1,415,141
Miscellaneous 39,424 336,327 452,221 827,972 290.763
Total Revenues 9,002,351 2,005,124 1,300,278 2,B72,220 14�979,974 15,404,049
Expenditures
Current:
General government 1,797.895 1,797,895 1,591,108
Public s�fety 3,938,920 3,938,920 3,950,862
Public works 1,594,190 1,594,190 1,827,052
Community health services 114,579 114,579 104,706
Parks and recreation 1,783,811 29,122 1,812,933 1,926,695
Economic development 187,606 25,681 398,006 611,293 578,042
Nondepartmental 273,273 273,273 414,149
Capital outlay 137,590 3,186,574 3,324,164 2,796,918
Debt service:
Principal retirement 1,880,000 1,880,000 940,000
Interest and fiscal charges 119,511 1,282,135 105,511 1,507,157 1,115,027
Total F�cpenditures 9,690.274 311,904 3,162,135 3,690,091 16,854,404 15,244,559
Excess or Deficiencv(-) of Revenues Over Exoenditure (687,923) 1,693,220 (1,861,856) (1,017,871) (1,874,430) 159,490
Other Financins� Sources or Uses(-1
Operating transfers in 140,000 1,236,007 2,165,219 3,541,226 2,073,031
Operating transfers out (1,514,826) (2,296,12� (3,810,953) (2,284,261)
Proceeds from sale of refunding bonds 4,270,000 4,270�000 8,996,855
Sate of certificates of indebtedness 480,000 480,000 700,000
Total Other Financinq Sources or Uses(-1 620,000 (1,514,826) 5,50B (130,908) 4,480,273 9,485,625
Excess or Deficiencv(-1 of Revenues and Other
Sources Over Exoenditures and Other Uses (67,923) 178,394 3,644,151 (1,148,779) 2,605,843 9,645,115
Fund Balances (Deficitsl Januarv 1 5,108,575 (2,419,720) 3,634,878 13,780,865 20,104,598 10,459,483
Fun lanc
d Ba es Deficits December 31 $5 040,652 2 241 326 $7 279 029 $12,632,086 $22,710,441 $20,104,598
(See notes to financiai statements)
-19-
City of Brooklyn Center EXHIBIT 3
General and Special Revenue Funds
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1992
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Buds�et Actual Budget Budget Actual Budget
Revenues
Propertytaxes $4,689,933 $4,291,322 ($398,611) $1,323,500 $1,397,075 $73,575
Licenses and permits 294,836 332,186 37,350
Intergovernmental 2,955,970 3,133,495 177,525 215,761 251,747 35,986
Charge for services 1,012,980 794,876 (218,104) 49,500 18,770 (30,730)
Courtfines 210,000 148,701 (61,299)
Investmentearnings 350,000 262,347 {87,653) 1,205 1,205
Miscellaneous 33,741 39,424 5,B83 336,327 336,327
Total Revenues 9,547,460 9,002,351 (545,109) 1,588,761 2,005,124 416,363
Expenditures
General government 1,874,155 1,797,895 (76,260)
Public safety 4,127,528 3,938,920 (188,608)
Publicworks 1,794,743 1,594,190 (200,553)
Community health services a 119,440 114,579 (4,861)
Parks and recreation 2,006,373 1,783,811 (222,562) 65,000 29,122 (35,878)
Economic development 182,000 187,606 5,606 53,032 25,681 (27,351)
Nondepartmental 378,834 273,273 (105,561)
Capital outlay 146,370 137,590 (8,780)
Interest and fiscal charges 160,000 119,511 (40,489)
Total F�coenditures 10,483,073 8,690,274 (792,799) 424,402 311,904 (112,498)
Excess or Deficiencv(-1 of Revenues
Over Expenditures (935,613) (687,923) 247,690 1,164,359 1.693,220 528,861
Other Financina Sources or Uses(-)
Operating transfers in 140,000 140,000
Operating transfers out (i,330,535) (1,514,526) {184,291j
Sale of certificates of indebtedness 480,000 480,000
Total Other Financina Sources or Uses(-) 620,000 620,000 0 (1,330,535) (1,514,826) (184,291)
Excess or Deficiencv(-) of Revenues and Other
Sources Over Exaenditures and Other Uses (315,613) (67,923) 247,690 (166,176) 178,394 344,570
Fund Balances (Deficits) Januarv t 5,108,575 5,108,575 (2,419,720) (2�419,720)
Fund Balances (Deficits) December 31 $4,792,962 $5,040,652 $247,690 ($2,585,896) ($2,241,326) $344,570
(See notes to financial statements)
-2�-
City of Brooklyn Center EXHIBIT 4
Proprietary Fund Types
COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1992
Internal Totals
Enterprise Service (Memorandum Only)
Operatinp Revenues Funds Fund 1992 1991
Sales and user fees $7,161,117 $7,161,117 $6,471,067
Cost of sales 2,039,205 2,039,205 2,053,165
Net O�eratin4 Revenues 5,121,912 5,121,912 4,417,902
Operatinp Exp enses
Personal services 1,724,539 $2,420 1,726,959 1,198,545
Supplies 205,080 205,080 203,955
Other services 2,232,689 2,232,689 2,591,627
Insurance 43,751 43,751 42,280
Utilities 302,646 302,646 256,339
Rent 53,416 53,416 51,744
Depreciation 818,130 818,130 752,106
Total Oberatina Exqenses 5,380,251 2,420 5,382,671 5,096,596
Operatinp Loss (258,339) (2,420) (260,759) (678,694)
Nonoqeratina Revenues or Exnenses
Investment earnings 531,703 64,047 595,750 724,358
Special assessments (for service
hookups and delinquencies) 28,580 28,580 45,853
Intergovernmental revenue 0 71,862
Other revenue 3,145 3,145 2,537
Interest and fiscal agent fees (84,838) (84,838) (90,816}
Nonoqeratina Totals 478,590 64,047 542,637 753,794
Income Before OQeratina Transfers 220,251 61,627 281,878 75,100
Operating Transfers In 334,727 334,727 359,125
Operating Transfers Out(-) (65,000) (65,000) (147,895)
Net Income 489,978 61,627 551,605 286,330
Debreciation on contributed assets that
reduces contributed canital 335,605 335,605 320,421
Retained Earninas Januarv 1 11,581,588 764,319 12,345,907 11,739,156
Retained Earnings December 31 $12,407,171 $825,946 $13,233,117 $12,345,907
(See notes to financial statements)
-21-
City of Brooklyn Center EXHIBIT 5
Proprietary Fund Types
COMBINED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1992
Internal Totals
Enterprise Service (Memorandum Only)
Cash flows from operatina activities: Funds Fund 1992 1991
Operating loss ($258,339) ($2,420) ($260,759) ($678,694)
Adjustments to reconcile operating loss to net
cash provided by (used for) operating actvities:
Depreciation 818,130 818,130 752,106
Changes in assets and liabilities:
Accounts receivable (58,323) (58,323) (169,583)
inventories 31,124 31,124 12,112
Prepaid expenses (23,402) (23,402) (17,244)
Accounts payable (191,772) (191,772) 115,929
Accrued salaries and leave (11,513) (11,513) 37,646
Accrued health insurance liability (5,779) (5,779) 12,972
Other nonoperating income 31,725 31,725 48,390
Net cash �rovided bv (used for) oaeratin4 activities 337,630 (8,199) 329,431 113,634
Cash flows from noncaoital financina activities:
Net repayments under revolving loan arrangement (65,693) (55,693) (46,257)
Interest paid on revolving loan (82,898) (82,898) (87,121)
Operating grants received 0 0 71,862
Operating transfers in 334,727 334,727 359,125
Operating transfers out (65,000) (65,000) (147,895)
Net Cash nrovided bv noncaoital financina activities 121,136 121-136 149,714
Cash flows from caoital and related financina activities:
Capital contributions in aid of construction 151,167 751,167 378,847
Acquisition and construction of capital assets (1,303,208) (1,303,208) (1,752,842)
Principal paid on revenue bonds (45,000) (45,000) (45,000)
Interest paid on revenue bonds (1,940) (1,940) (3,695)
Proceeds from sale of equipment 258 1
Net cash used for caoitai and related financina activities (1,198,723) (1,198,723) (1,420,980)
Cash flows from investina activities:
Interestoninvestments 531,703 64,047 595,750 724,358
Change in restricted assets 121,755 121,755 1,755
Net cash nrovided bv investina activities 653,458 64,047 717,505 726,113
Net increase (decrease) in cash and cash equivalents (86,499) 55,848 (30,651) (431,519)
Cash and cash eauivalents at beainnina of vear 4,287,897 961,188 5,249,085 5,680,604
Cash and cash equivalents at end of year $4_201-398 $1 $5_218_434 $5-249�085
(See notes to financial statements)
-22-
Citv of Brooklvn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1992
Note 1: Summarv of Sianificant Accountina Policies
A. Reportina Entitv
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, responsibility for funding
deficits, and outstandin debt secured b the City's full
g Y
faith and credit or revenues. 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 Authority (HRA) and Economic
Development Authority (EDA) in and for the City of Brooklyn
Center.
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 or anized as a non- rofit or anization b
g P g Y
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
-23-
1 Note 1: Summarv of Si«nificant Accountina Policies (continued)
A. Reportina Entitv (continued)
premium tax in the amount of $69,110 and ad valorem taxes in
the amount of $20, 790 were receipted by the City and disbursed
to the Association during 1992.
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 Institute)
L 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 seven generic fund types and three broad
fund categories as follows:
GOVERNMENTAL FUNDS
General Fund The General Fund is the general operating fund
of the City. It is used to account for all financial
resources except those required to be accounted for in another
fund.
1 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.
-24-
Note 1: Summarv of Sianificant Accountina Policies (continued)
B. Fund Accountina (continued)
Capital Proj ects Funds Capital Proj ects Funds are used to
account for financial resources to be used for the acquisition
or construction of major capital facilities, other than those
financed by proprietary funds.
PROPRIETARY FUNDS
Enterprise Funds Enterprise Funds are used to account for
operations that are financed and operated in a manner similar
to private business enterprises where the intent is that the
costs {expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be
financed or recovered primarily through user charges.
Internal Service Funds Internal Service Funds are used to
account �or the financing of goods or services provided by one
department to other departments of the City on a cost
reimbursement basis.
FIDUCIARY FUNDS
A enc Funds A enc Funds are used to account for assets
9 Y 5 Y
held by the City as an agent for others.
C. Fixed Assets and Lona-Term Liabilities r
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 thei.r 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, j
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.
-25-
Note 1: Summarv of Sianificant Accountina Policies (continued)
C. Fixed Assets and Lona-Term Liabilities (continued)
Al1 fixed assets are valued at historical cost or estimated
historical cost if historical cost is unavailable. Donated
fixed assets are valued at their estimated market value as of
the date donated.
The fixed assets of the proprietary funds are depreciated
using the straight-line method over the estimated useful lives
of the assets. The estimated useful lives are as follows:
Water Sewer Mains Lines 100 years
Buildings and Structures 20-40 years
Water Wells and Storage Tanks 15-50 years
Sewer Lift Stations 15-40 years
Machinery and Equipment 5-20 years
Furniture and Fixtures 5-20 years
Public Utility assets financed by special assessments are
recorded as contributions.
Long-term liabilities expected to be financed from
governmental funds are accounted for in the General Long-Term
Debt Account Group, not in the governmental funds.
All proprietary funds are accounted for on a flow of economic
resources measurement focus. With this measurement focus, all
assets and all liabilities associated with the operations of
these funds are included on the balance sheet. Fund equity
(i.e., net total assets) is segregated into contributed
capital and retained earnings components. Proprietary
fund-type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net total assets.
D. Basis of Accountinq
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.
Ma�or 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.
-26-
Note l: Summarv of Sianificant Accountina Policies (continued)
D. Basis of Accountinq (continued)
Expenditures are generally recognized under the modified
accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general
long-term debt which is recognized when due.
All proprietary funds are accounted for using the accrual
basis of accounting. Their revenues are recognized when they
are earned, and expenses are recognized when they are
incurred. Unbilled Water and Sewer fund utility service
receivables are recorded at year end.
E. Budaets and Budaetarv Accountina
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 propert owner by the second week of
Y
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 during the year may only be
made by the City Council. These amounts must be financed by
funds from the contingency reserve set up in the general fund
or by additional revenues.
7. All budget amounts lapse at the end of the year to the
I 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
-27-
i
Note 1: Summarv of Si«nificant Accountina Policies (continued)
E. Budaets and Budaetarv Accountina (continued)
bond indenture provisions. Budgetary control for Capital
Projects Funds is accomplished through the use of project
controls.
9. Budc�ets for the General and Special Revenue Funds are
I adopted on a basis consistent with generally accepted
accounting principles.
10. Budgetary control is maintained at the department level,
I in compliance with the City Council's directions.
11. Budgeted amounts are as originally adopted, or as amended
by the City Council. Individual amendments taere not material
I in reZation 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. Cash investments are stated at cost which
approximates market except for Deferred Compensation Fund
assets. Al1 highly liquid unrestricted investments with a
maturity of three months or less when purchased are considered
to be cash equivalents. AI1 of the 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.
I 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. Restricted Assets and Retained Earninas
Investments and Retained Earnings in the amount of $3,700,000
in the Water Utility Fund and $300,000 in the Sanitary Sewer
Fund have been restricted for the possible future expansion of
the facilities.
I.
Accumulated Unnaid Vacation and Sick Pav
I 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 1: Summarv of Sianificant Accountina Policies continued
J. Propertv Tax
Property tax levies are set by the City Council in December of
each year, and are certified to Hennepin County for collection
in the following year. In Minnesota, counties act as
collection agents for all property taxes.
The County spreads all levies over taxable property. Such
taxes become a lien on January 1 and are recorded as
receivables by the City at that date. Revenues are accrued
and recognized in the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal
installments on May 15 and October 15. Personal property
taxes may be paid on February 28 and June 30. The Caunty
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. This limitation has
been eliminated for taxes payable beginning in 1993.
K. Reclassifications
Certain 1991 accounts have been reclassified to conform to the
1992 presentation.
L. Total Columns on Combined Statements
Total columns on the Combined Statements are captioned
Memorandum Only to indicate that they are presented only to
facilitate financial analysis. Data in these columns do not
present financial position, results of operations, or cash
flows in conformity with generally accepted accounting
principles. Interfund eliminations have not been made in the
aggregation of this data.
-29-
Note 2: Cash and Investments
A. Deposits
In accordance with Minnesota Statutes, the City maintains
deposits at those depository banks authorized by the City
Council. All such depositories are members of The
Federal Reserve System.
Minnesota Statutes require that all City deposits be
protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the
deposits not covered by insurance or bonds (140% in the
case of mortgage notes pledged).
Authorized collateral includes the legal investments
described below, as well as certain first mortgage notes,
and certain other state or local government obligations.
Minnesota Statutes require that securities pledged as
collateral be held in safekeeping by the City treasurer
or in a financial institution other than that furnishing
the collateral.
At December 31, 1992 the carrying amount of the City's
demand deposits was $40,138 and the bank balance was
$391,159. Of the bank balance, $129,595 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 States or its agencies.
-30-
Note 2: Cash and InvPStments (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 or less.
(f) Repurchase or reverse repurchase agreements with
banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000,
a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York,
or certain Minnesota securities broker-dealers.
(g) Future contracts sold under authority of
Minnesota Statutes 471.56, subdivision 5.
The City's investments are categorized below to give an
indication of the level of custodial credit risk assumed
at year-end. Category 1 includes investments that are
insured or registered or for which the securities are
held by the City or its agent in the City's name.
Category 2 incZudes 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, 1992
Credit Risk Category Carrying Market
Securities Type 1_ 2 3 Amount Value
U.S. Governments $4,686,100 $12,085,000 $16,771,100 $16,965,951
Federal Agencies 11,175,000 11,175,000 11,064,686
$4,686,100 $0 $23,260,000 $27,946,100 $28,030,637
-31-
NOTE 2: Cash and Investments (continued)
I SUMMARY OF CASH AND INVESTMENTS
Balances at December 31, 1992
Cash in Banks: Carrying
Amount
Marquette Bank Brookdale, Brooklyn Center, Minnesota $35,005
First National Bank of Minneapolis, Minnesota 243
First National Bank of Omaha, Nebraska 4,876
American Bank, St. Paul, Minnesota
Total Cash in Bank $40,138
Investments:
Investment Tv�e Interest Rate Maturitv
U.S. Treasury bond 2.4-7.3% 1993-1996 $16,771,100
Federal Home Loan Bank bonds 4.4-8.3% 1993-1997 5,200,000
Federal National Mortgage
Association bonds 6.3-8.2% 1994-1997 5,135,000
Federai Farm Credit Bank bonds 3.2-3.4% 1993 840,000
Total I nvestments $27,946,100
Minnesota Municipal Money Market 2,617,674
Money Market Fund, First Trust, St. Paul, Minnesota 429,358
Total Cash and Investments $31,033,270
Accrued interest on investments 264,736
Discounts on investments (220,889)
Premiums on investments 15,329
Change funds 5,635
Performance Deposits (33,350)
Certificates of Indebtedness 545,000
Temporary fmprovement Notes (Note 3) 2,939,857
Total Cash, Cash Equivalents, Investments,
and Restricted Investments $34,549,588
Other Assets Pools =_Deferred Compensation Plan $2,241,152
From Exhibit 1, COMBINED BALANCE SHEET
t Cash and investments $29,549,588
Restricted investments 5,000,000
$34,549,588
-32-
Note 3: Temborarv Improvement Notes
Temporary Improvement Notes represent interfund borrowing
to provide interim financing for construction projects or
capital outlay expenditures. Such loans bear interest at
8 percent and totaled $2,939,857 and $3,413,461 at
December 31, 1992 and 1991, respectively. For collection
purposes, all of these notes are considered current,
since they are payable on demand.
Individual fund note balances at December 31, 1992 were
as follows:
Interfund Interfund
Receivable Pavable
General $856,200
E. Brown T.I.F. District $1,525,000
Park Bonds of 1980 72,814
Tax Increment Bonds of 1985 76,473
Tax Increment Bonds of 1991 95,081
Refunding Bonds of 1987 202,345
Capital Improvements Fund 814,430
M.S.A. Construction Fund 553,099
Spec Assess Construct Fund 1,414,857
Economic Development Authority 269,415
TOTALS $2,939,857 $2,939,857
N ote 4:
Fixed Assets
Changes in the General Fixed Assets Account Group during 1992 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Disnosals 1992
Land $2,213,061 $155,398 $2,368,459
Buildings Improvements 4,588,978 267,865 $140 4,856,703
Park Improvements 2,858,857 10,255 2,869,112
Furniture Fixtures 741,046 219,391 22,835 937,602
Departmental Equipment 3,841,232 459,278 180,535 4,119,975
TOTAL GENERAL FIXED
ASSETS $14,243,174 $1,112,187 $203,510 $15,151,851
-33-
Note 4: Fixed Assets (continuedl
Changes in the Municipal Liquor Fund Fixed Assets (at cost) during 1992 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Disqosals 1992
Land $107,405 $107,405
Land Improvements 4,228 4,228
Buildings Improvements 294,852 294,852
Leasehold Improvements 27,834 27,834
Furniture Fixtures 127,668 $4,253 $10 131,911
Departmental Equipment 16,464 16,464
TOTAL MUNICIPAL LIQUOR $578,451 $4,253 $10 $582,694
Changes in the Golf Course Fixed Assets (at cost) during 1992 were as follows:
Balance BalanCe
Jan. 1, Dec. 31,
1992 Additions Disposals 1992
Land $1,391,711 $1,391,711
Land Improvements 30,728 30,728
Buildings Improvements 303,321 303,321
Furniture 8� Fixtures 17,711 17,711
Departmental Equipment 105,384 $16,401 121,785
TOTAL GOLF COURSE $1,848,855 $16,401 $0 $1,865,256
Changes in the Earle Brown Heritage Center Fixed Assets (at cost} during 1992
were as follows:
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Disposals 1992
Land $925,000 $925,000
Buildings Improvements 9,405,894 $101,526 9,507,420
Furniture Fixtures 812,465 35,511 $1,535 846,441
Departmental Equipment 67,723 14,130 81,853
TOTAL E. B. H.C. $11,211,082 $151,167 $1,535 $11,360,714
-34-
N 4:
ote Fixed Assets (continuedl
Changes in the Water Utility Fund Fixed Assets (at cost) during 1992 were as follows:
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Dis�osals 1992
Land $23,938 $23,938
Land Improvements 2,600 2,600
Buildings Improvements 4,109,105 $26,988 4,136,093
Mains and Lines 7,650,905 63,849 7,714,754 r
Machinery Equipment 123,865 98,121 $29,425 192,561
TOTAL WATER UTILITY $11,910,413 $188,958 $29,425 $12,069,946
Chan es in the Sanitar Sewer Fund Fixed Assets at cost durin 1992 were as follows:
9 Y 9
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Dist�osals 1992
Land $3,388 $3,388
Buildings Improvements 1,372,980 $545,842 $11,138 1,907,684
Mains and Lines 5,206,690 356,789 5,563,479
Machinery Equipment 160,060 32,767 20,192 172,635
TOTAL SANITARY SEWER $6,743,118 $935,398 $31,330 $7,647,186
Changes in the Storm Drainage Fund Fixed Assets (at cost) during 1992
were as follows:
Balance Balance
Jan. 1, Dec. 31,
1992 Additions Dis os I 1992
q as
Furniture Fixtures 2 146 2 146
Departmental Equipment 62,555 62,555
TOTAL STORM DRAINAGE $0 $64,701 $0 $64,701
-35-
i
Note 5: Lona-Term Debt
The City's long-term debt includes general obligation bonds,
certificates of indebtedness, state aid street bonds, tax
increment bonds, and improvement bonds; all of which are
recorded in the General Long-Term Debt Account Group.
The following is a summary of bond transactions of the City
for the year ended December 31, 1992:
General
Obligatian
Bonds G.O. State Special G.O. Tax Water
Certificates Aid Street Assessment Increment Revenue
of Indebtedness Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $1,060,000 $3,000,000 $530,000 $11,775,000 $45,000 $16,410,000
Bonds issued 480,000 4,270,000 4,750,000
Bonds retired 685,000 115,000 145,000 935,000 45,000 1,925,000
Bonds payable
December 31 $855,000 $2,885,000 $385,000 $15,110,000 $0 $19,235,000
General Obliaation Bonds Certificates of Indebtedness
General Obligation Bonds and Certificates of Indebtedness are
backed by the full faith and credit of the City and are paid
from property taxes.
G.O. State Aid Street Bonds
Future allotments from Municipal State Aid for Streets will
repay these bonds which are backed by the full faith and
credit of the City.
S�ecial Assessment Refundinq Bonds
These bonds 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.
G.O. Tax Increment Bonds
Tax Increment Bonds will be repaid from incremental tax
increases on the property within certain development districts
and are backed by the full faith and credit of the City.
-36-
Note 5: Lona-Term Debt fcontinuedl
Refundina Tax Increment Bonds
On January 13, 1992, the City issued $4,270,000 in General
Obligation Tax Increment Refunding Bonds, Series 1992A with a
net interest rate of 5.329°s. The proceeds of the 1992 bond
issue will be used to advance refund $4,180,000 of the City's
$5,250,000 General Obligation Tax Increment Bonds, Series
1985A, callable on February 1, 1996 and with a net interest
rate of 8.054%. The proceeds of $4,242,551, together with
other City funds in the amount of $250, (after payment of
$45,137 in bond issue costs) were used to purchase State and
Local Government Securities (SLG's). Those securities were
deposited in an irrevocable trust with an escrow agent to
provide for the payment of remaining maturities of the
refunded bonds at the call date and for the interest on the
refunding bonds through the call date. The City is
responsible for principal and interest payments on the
refunded bonds through the call date. The principal balances
of both the refunded and refunding bonds are reported in the
General Long-Term Debt Account Group until the call date of
the refunded bonds, at which time the refunded bonds will be
considered defeased and the related liability will be removed
from the General Long-Term Debt Account Group.
The City advance refunded the 1985 General Obligation Tax
Increment Bonds to reduce its debt service payments by
$430,748 and to obtain an economic gain (the difference
between the present values of the debt service payments on the
old and the new debt) of $295,046.
Long-term debt maturities (including interest of $8,641,436) are as foliows:
General
Obligation
Bonds G.O. State Special G.O. Tax
Certificates Aid Street Assessment Increment
of Indebtedness Bonds Bonds Bonds Total
1993 $749,980 $306,180 $127,158 $1,423,468 $2,606,786
1994 172,400 309,071 111,912 1,439,570 2,032,953
1995 306,325 92,131 1,461,130 1,859,586
1996 307,872 53,550 1,501,995 1,863,417
1997 308,588 41,100 1,917,523 2,267,211
1998 on 2,799,346 14,447,137 17,246,483
$922,380 $4,337,382 $425,851 $22,190,823 $27,876,436
-37-
Note 5: Long-Term Debt (continued)
Long-term debt obligations outstanding at year-end are summarized as foilows:
Bond
Payment Issue Maturity Authorized
Rates Dates Date Date And Issued Retired Outstandinq
General Obligation Issues
1991 Certificates of Indebtedness 8.0 12-31 01-01-91 12-31-93 $700,000 $475,000 $225,000
1992 Certificates of Indebtedness 8.0 12-31 01-01-92 12-31-94 480,000 160,000 320,000
1980 Park Improvement Bonds 7.5-7.6 2-01 8-01 09-01-80 02-01-93 1,500,000 1,190,000 310,000
Total $2_680 $1_825_000 $855_000
G.O. State Aid Street Bonds
G.O. State-Aid Street Bonds 4.7-6.65 4-01 10-01 09-01-91 04-01-06 $3,000,000 $115,000 $2,885,000
Total $3,000,000 $115,000 $2,885,000
Special Assessment Bonds
1987 Refunding Bonds 4.7-5.5 2-01 8-01 04-01-87 02-01-97 $1,200,000 $815,000 $385,000
Total $1,200,000 $815,000 $385,000
G.O. Tax Increment Bonds
1985 G.O. Tax Increment Bonds 6.75-8.1 2-01 8-01 12-01-85 02-01-03 $5,250,000 $210,000 $5,040,000
1991 G.O. Tax Increment Bonds 4.7-6.0 2-01 8-01 03-01-91 02-01-04 6,050,000 250,000 5,800,000
Total $13,700,000 $2,090,000 $11,610,000
Refunding Tax Increment Bonds of 1992
1992 G.O. Tax Incr Bonds 4.5-5.6 2-01 8-01 02-01-92 02-01-03 $4,270,000 $4,270,000
Total $4,270,000 $0 $4,270,000
-38-
I
Note 6: Segment Information as of and for the Year Ended December 31, 1992 was as follows:
E. Brown
Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage
Fund Fund Fund Fund Fund Fund Fund Total
Operating Revenues $2,664,667 $284,923 $795,157 $104,261 $896,857 $1,920,796 $494,456 $7,161,117
Depreciation Expense 28,764 25,435 335,605 233,447 194,879 818,130
Operating Income (Loss) 134,327 67,600 (661,191) 328 (98,995) 12,563 287,029 (258,339)
Operating Transfers In 334,727 334,727
Operating Transfers (Out) (65,000) (65,000)
Net Income (Loss) 53,885 15,233 (335,605) 5,120 215,616 234,670 301,059 489,978
Current Capital Contributions 143,392 143,392
Property, Plant Equipment:
Additions 4,253 16,401 151,167 188,958 935,398 64,701 1,360,878
Deletions 10 1,535 29,425 31,330 62,300
Net Working Capital 204,819 31,639 (4,263) 77,650 1,203,077 3,292,412 430,364 5,235,698
Total Assets 653,006 1,782,314 10,675,538 94,146 13,378,134 8,844,790 504,761 35,932,689
Bonds and Other Long-Term
Liabilities Payable from
Operating Revenues 179,944 1,080,000 1,259,944
Total Equity $364,221 $696,493 $10,566,617 $77,650 $13,336,542 $8,745,473 $495,065 $34,282,061
i i
Note 7: Contributed Capital
Enter rise funds hav r 'v
p e ecei ed 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 Water Sanitary
Course Center Utility Sewer
SOURCES AND USES
Capital Improvements Fund $143,392
Depreciation charged to contributions (335,605)
II
Total Change 0 (192,213) 0 0
Contributi n
o s, January 1, 1992 $692,206 10,758,811 $4,997,510 $5,618,576
Contributions, December 31, 1992 $692,206 $10,566,598 $4,997,510 $5,618,576
I
-40-
I
NOTE 8: 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, 1992, was $3,858,906 and
$1,737,067 respectively; the City's total payroll was $6,384,416.
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 leave their
-41-
NOTE 8: PENSION PLANS (continued)
A. Plan Descri�tion (continued)
contributions in the fund upon termination of public service, in order
to qualify for a deferred annuity at retirement age. Refunds of
contributions are available at any time to members who leave public
service, but before retirement benefits begin.
B. Contributions Recruired 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" contribution rate. Current combined
statutory contribution rates and actuarially required contribution
rates for the plans are as follows:
Statutorv Rates Reauired
E�loyee �lover Rates
Public Employees
Retirement Fund:
Basic Plan and
Coordinated Plan 4.41% 4.74% 9.95%
Police Fire Fund 8.00% 12.00% 18.60%
Total contributions made by the City during fiscal year 1992 were:
Percentaae of
Contribution Covered Pavroll
Emplovees Emplo`ter Emplovees Employer
Public Employees
Retirement Fund:
i, Basic Plan 16,182 21,097 8.23% 10.73%
Coordinated
Plan 155,542 163,181 4.23% 4.48%
Police Fire
Fund 138,781 208,172 8.00% 12.00%
TOTALS $310,505 $392,450
The City's contribution for the year ended June 30, 1992, to the
Public Employees Retirement Fund, represented approximately .17
percent of total contributions required of all participating entities.
For Public Employees Police and Fire Fund, contributions for the year
ended June 30, 1992, represented .7 percent of total contributions
required of all participating entities.
-42-
NOTE 8: PENSION PLANS (continued)
C. Fundinct Status and Proqress
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, 1992,
are shown below (in millions):
PERF PEPFF
Total pension benefit obligation $4,868
Net assets available for benefits,
at cost (market value for
PERF 4,068; PEPFF 1,013) $3,933 964
Unfunded (assets in excess of)
pension benefit obli ation 935 142
�J
The measurement of the pension benefit obligation is based on an
actuarial valuation as of June 30, 1992. Net assets available to pay
pension benefits were valued as of June 30, 1992.
Changes in Benefit Provisions
Effective for June 30, 1992, valuation, legislative activity since the
last actuarial valuation resulted in some minor changes in benefit
provision for the two funds. These changes did not have a significant
impact on the PERF or the PEPFF.
D. Ten-Year Historical Trend Information
Ten-year historical trend information is presented in PERA's
Comprehensive Annual Financial Report for the year ended June 30,
1992. This information is useful in assessing the pension plan's
accumulation of sufficient assets to pay pension benefits as they
become due.
E. Related Partv Investments
As of June 30, 1992 and for the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
-43-
Note 9: Pension Plan Brooklvn Center
Fire De�artment Relief Association
A. Plan Description
The City contributes to the Brooklyn Center Fire Department Relief
Association ("Association"). In accordance with Government Accounting
Standards Board Statement No. 5, it is classified as a defined benefit
single employer public employee retirement system.
Volunteer fire fighters of the City are members of the Association and
its pension plan. 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 $3,000 times the number of years of service, with
a maximum of 30 years. Spouse's, children's and funeral benefits are
also provided. These benefit provisions and all other requirements
are consistent with enabling state statutes.
The City levies property taxes at the direction of and for the benefit
of the association plan and passes through state aids allocated to the
plan, all in accordance with enabling state statutes.
B. Fundina Status and Proaress
The amount shown below as the "pension benefit obligation" is a
standardized disclosure measure of the present value of pension
benefits, adjusted for the effects of projected benefit increases,
estimated to be payable in the future as a result of service to date.
The measure is the actuarial present value of credited projected
benefits and is intended to help users assess the funding status of
the association plans on a going-concern basis, assess progress made
in accumulating sufficient assets to pay benefits when due, and make
comparisons among plans. It is independent of the actuarial funding
method used to determine contributions to the plan, discussed in "C"
below.
The pension benefit obligation was determined as part of an actuarial
valuation at December 31, 1992. 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.
An actuarial update to the pension obligation is performed annually.
On December 31, 1992, the unfunded pension benefit obligation was as
follows:
i
-44-
Note 9: Pension Plan (continued)
B: Fundina Status and Proaress (continuedl
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,385,958
Current Employees
Employer-financed vested 1,012,739
Employer-financed non-vested 264,222
Total ension benefit obli ation 2,662,919
P 9
Net assets available for benefits
(at cost, market equals $2,690,412) 2,729.341
Assets in excess of ension
P
benefit obligation (66,422)
I
No changes in actuarial assumption for benefit provisions that would
significantly affect the valuation of the pension benetit obligation
occurred during 1992.
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 net assets available
for benefits exceeded the actuarial accrued liabilit as of December
Y
31, 1992. Contributions at the level specified by the last full
actuarial study will continue to be made until a new study revises the
contribution level. The minimum tax levy obligation is the financial
requirement for the year less anticipated state aids. The funding
strategy for normal cost should provide sufficient resources to pay
lan benefits on a timel basis.
P Y
Total contributions to the plan in 1992 amounted to $89,900, of which
$20, 790 was levied by the City of Brooklyn Center and $69,110 was from
the State of Minnesota. The contributed amounts were actuariall
Y
determined as described above and were based on an actuarial valuation
as of January 1, 1991. The contributions represent funding for normal
cost of $63,946 and the amortization of the unfunded actuarial accrued
liability of $19,844.
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.
-45-
Note 9: Pension Plan (continued)
C. Contributions Reauired and Contributions Made (continued)
The computation of the pension contribution requirements for 1992 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, 1992. Three year trend
information for the Association is as follows:
1992 1991 1990
Available assets as a
percentage of benefit
obligation 103% 99% 94%
I, Unfunded pension benefit
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.
E. Related Party Investments
As of De
cember 30, 1992, the Association held no securities issued by
the City or other related parties.
-46-
Note 10: Individual Fund Disclosures_
Deficit fund ba],ances exist in the followinq funds:
Special Revenue Funds:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $2,271,328
This deficit is being funded through internal borrowing, which will
be repaid from future surplus tax increments.
Capital Project Funds:
Special Assessment Construction:
Unreserved deficit fund balance $1,164,780
This deficit is being funded through internal borrowin Bonds ma
be
g Y
sold in the future if the balances of special assessments
receivable becomes large enough to justify an issue.
Note 11: Inter-fund Receivables and Pavables
Individual inter-fund receivable and payable balances at December 31,
1992, were as follows:
Due From/To Other Funds:
Receivable fund Payable fund Amount
Economic Development Community Development
Authority Block Grant $206.389
I $206,389
Inter-fund Loans From/To Other Funds:
Receivable fund Pavable fund Amount,
General Fund E. Brown T.I.F. 105,074
Municipal State Aid
for Construction E. Brown T.I.F. 593,069
Capital Improvements Liquor Fund 199,201
Capital Improvements Golf Course 1,080,000
$1,977,344
Inter-fund Loan Terms:
The loans payable by the Earle Brown Tax Increment Financing District
are 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 t
rate of 5% and is repaying the loan principal over a period extending
through the year 2008.
-47-
I Note 12: Continaencies
There are several lawsuits pending in which the City is involved.
I I City Management estimates that the potential claims against the City
not covered by insurance resulting from such litigation would not
materially affect the financial statements of the City.
Note 13: Deferred Comnensation Plan
The City offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 457. The plan, available
to all City employees, permits them to defer a portion of their salary
until future years. The deferred compensation is not available to
employees until termination, retirement, death, or unforeseeable
emergency.
All amounts of compensation deferred under the plan, all property and
rights purchased with those amounts, and all income attributable to
those amounts, property, or rights are (until paid or made available
to the employee or other beneficiary) solely the property and rights
of the City (without being restricted to the provisions of benefits
under the plan), subject only to the claims of the City's general
creditors. Participants' rights under the plan are equal to those of
general creditors of the City in an amount equal to the fair market
value of the deferred account for each participant.
It is the opinion of the City's legal counsel that the City has no
liability for losses under the plan but does have the duty of due care
that would be required of an ordinary prudent investor. The City
believes it is unlikely that it will use the assets to satisfy the
claims of general creditors in the future.
The City is reporting the activity of this plan as an agency fund and
carries its investment at market value.
Note 14: Post-Emblovment Health Care Benefits
In addition to the pension benefits described in Note 8, the City
provides certain health care insurance benefits for city employees who
retire before age 65. Substantially all of the City's full time
employees may be eligible for those benefits from the time they retire
with a full annuity from PERA (Note 9A), until they reach age 65 or
i become eligible for medicare. Four employees currently meet this
requirement. 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 for the years ended
December 31, 1992 and 1991 was $8,199 and $6,706, respectively. In
addition, the expenditures in 1992 were reduced by $5,779 and
increased by 12,972 in 1991 to account for the change in the
liability for the estimated cost of employees who will be eligible to
enter the program on or before December 31, 1995.
-48-
I
e
Note 15: Lease
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,
1992 and 1991 was $36,031 and $34,747, respectively. Future minimum
rental payments under the lease agreement for 1993 and 1994 are
$28,160 and $11,733, respectively.
-49-
Cit of Brookl n Center Minnesota
Y Y
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.
t 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.
-50-
�I
City of Brooklyn Center A-1
General Fund
BALANCE SHEET r
December 31, 1992
1992 1991
ASSETS t
Cash and investments $5,Q82,804 $5,321,044
Temporary improvement notes 856,200 914,825
Accounts receivable 74,079 42,604
Taxes receivable 319,112 189,647
Due from other governments 9,561 15,284
Interfund loan-E. Brown T.I.F. 105,074 105,074
TOTAL ASSETS $6,446,830 $6,588,478
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $277,406 $510,289
Accrued safaries payable 111,371 286,020
Accrued vacation and sick pay 528,290 520,012
Deferred revenue 489,111 163,582
Total Liabilities 1,406,178 1,479,903
Fund Balance
Reserved for: Interfund loans 105,074 105,074
Unreserved fund balance
Designated:
Working capital 4,899,499 4,656,444
Appropriated to next budget 36,079 347,057
Total Fund Balance 5,040,652 5,108,575
TOTAL LIABILITIES AND FUND BALANCE 6 446 830 6 588 478
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City of Brooklyn Center A-2
General Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
Year Ended December 31, 1992
I 1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
Revenues
Property taxes $4,689,933 54,291,322 ($398,611) 54,274,089
1 Licenses and permits 294,836 332,186 37,350 311,751
Intergovernmental 2,955,970 3,133,495 177,525 2,926,570
Charges for services 1,012,980 794,876 (218,104) 881,213
Court fines 210,000 148,701 (61,299) 202,090
Investment earnings 350,000 262,347 (87,653) 323,106
Miscellaneous 33,741 39,424 5,683 37,694
Total Revenues 9,547,460 _9,002,351 (545,109) _8,956,513
Exnenditures
General government 1,874,155 1,797,895 (76,260) 1,591,108
Public safety 4,127,528 3,938,920 (188,608) 3,950,862
Public works 1,794,743 1,594,190 (200,553) 1,827,052
Community services 119,440 114,579 (4,861) 104,706
Parks and recreation 2,006,373 1,783,811 (222,562) 1,870,385
Economic development 182,000 187,606 5,606 177,179
Non-departmental 378,834 273,273 (105,561) 414,149
Total Exnenditures 10,483,073 _9,690,274 (792,799) _9,935,441
Deficiencv of Revenues
Over ExDenditures (935,613) (687,923) 247,690 (978,928)
Other Financina Sources
Operating transfers in 140,000 140,000 0 177,477
Sale of cert. of indebtedness 480 000 480,000 0 700,000
Total Other FinancinQ
Sources 620,000 620,000 0 877,477
Deficiencv of Revenues
and Other Financina Sources
Over Exoenditures (315,613? (67,923) 247,690 (101,451)
Fund Balance January 1 5,108,575 5,108,575 0 5,210,026
I,
Fund Balance December 31 $4,792,962 $5,040,652 $247,690 55,108,575
1
1
-52-
S-1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1992
1992
Actual Over
or Under(-) 1991
B Actual
Budpet Actual udaet
Ad Valorem Taxes
Pro ert taxes 4 284 933 3 893 784 $391,149 $3,897,499
P Y
Penalties and int r 2 1 039 18 961 1 022
e est 0 000
Lodging tax 385,000 394,960 9,960 373,007
Special assessments 1,539 1,539 2,561
Total Ad Valorem Taxes 4 4-291-322 (398,611) __4,274,089
Licenses and Permits
Liquor and beer 126,000 110,036 (15,964) 138,348
Building permits 80,Q00 114,482 34,482 82,079
Mechanical permits 18,000 27,861 9,861 19,445
Sewer and water permits 750 3,041 2,291 996
Plumbing permits 7,000 12,549 5,549 6,650
Electrical permits 34 34 39
Garbage licenses 1,945 2,156 211 1,985
Taxicab licenses 600 400 (200) 563
Mechanicallicenses 3,000 3,483 483 3,756
Food licenses 19,501 18,321 (1,180) 23,019
Service station licenses 1,795 1,365 (430) 1,910
Vehicle dealer licenses 900 900 0 900
Bowling licenses 700 700 0 808
Cigarette licenses 375 1,115 740 1,273
Swimming pool licenses 2,535 2,415 (120) 2,942
Sign permits 2,000 2,003 3 1,842
Rental dwelling permits 16,020 18,084 2,064 12,999
Lodging establishments 935 138 (797) 1,105
Amusement licenses 5,630 5,583 (47) 5,967
Dog licenses 5,650 5,724 74 3,426
Miscellaneous business license 1,500 1,796 296 1,699
Total Licenses and Permits 294,836 332,186 37,350 311,751
-53-
S-1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF REVENUES AND �THER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1992
1992
Actual Over
or Under(-) 1991
1 Budyet Actual Budqet Actual
Interaovernmental
Federai grants:
Miscellaneous grants $6,000 $7,560 $1,560 $7,330
Total Federal Grants 6,000 7,560 1,560 7,330
i State grants:
Local government aid 1,647,162 1,787,378 140,216 1,679,415
Homestead credit aid 1,033,058 1,033,058 0 953,469
Police pension aid 177,000 198,632 21,632 176,958
Fireman pension aid 70,000 69,110 (890) 70,248
Police training 15,000 6,922 (8,078) 14,402
Miscellaneous grants 7,750 30,835 23,085 24,748
Total State Grants 2,949,970 3,125,935 175,965 2,919,240
Total Interaovernmental Rev. 2,955,970 3,133,495 177,525 2,926,570
Charaes for Services
Engineering and clerical fees 0 0 0 103,789
General government charges 27,210 34,934 7,724 25,383
I Public safety charges 17,000 25,669 8,669 20,540
Recreation fees 968,770 734,273 (234,497) 731,501
Total Charaes for Services 1,012,980 794,876 (218,104) 881,213
Court Fines
1 Fines 210,000 148,701 (61,299) 202,090
Total Court Fines 210,000 (61-299) 202,090
Miscellaneous
Interest on investments 350,000 262,347 (87,653) 323,106
Forfeited drug money 15,241 21,297 6,056 19,073
Other 18,500 18,127 (373) 18,621
I
Total Miscellaneous 383,741 301,771 81,970 360,800
Total Revenues _$9,547,460 _$9,002,351 _$8,956,513
-54-
S-1
City of Brooklyn Center (Continued from
General Fund prior page)
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1992
1992
Actual Over
or Under(-) 1991
Budyet Actual Budqet Actual
Other Financinq Sources
Operating transfers in:
Liquor Fund $65,000 $65,000 $0 $130,000
M.S.A. Fund 75,000 75,000 0 29,582
Storm Drainage Fund 0 0 0 17,895
Sale of cert. of indebtedness 480,000 480,000 0 700,000
Total Other Financina Sources 620,000 620,000 0 877,477
Total Revenues and Other Sources $10,167,460 $9,622,351 ($545,109) $9,833,990
-55-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1992 next page)
1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
General Government
Mayor and Council:
Personal services 530,211 $30,316 $105 529,286
Services and other charges 57,379 48,160
Total Mavor and Council 87,590 78,476 (9,114) 75,795
Charter Commission:
Services and other charges 3,200 3,113 (87) 1,177
Total Charter Commission 3,200
Administrative Office:
Personal services 340,745 332,323 (8,422) 318,837
Services and other charges 76,200 58,360 (17,840) 20,585
Capital outlay 0 0 0 330
Charged to other funds (77,266) (77,266) 0 (74,476)
Total Administrative Office 339,679 313,417 (26,262) 265,276
Elections and Voter Registration:
Personal services 46,198 36,304 (9,894) 13,917
Supplies 1,900 1,560 (340) 0
Services and other charges 6,870 6,317 (553) 3,146
Total Elections 54,968 44,181 (10,787) 17,063
Assessor's Office:
Personal services 191,868 174,040 (17,828) 173,010
Supplies 3,650 3,496 (154) 1,221
Services and other charges 6,060 4,488 (1,572) 4,096
Capital outlay 2,500 1,741 (759) 0
Total Assessor°s Office 204,078 183,765 (20,313) 178,327
Finance:
Personal services 405,706 404,299 (1,407) 376,181
Supplies 2,450 1,633 (817) 1,921
Services and other charges 1,750 1,364 (386) 1,450
Capital outlay 2,300 2,100 (200) 1,094
Charged to other funds (211,333) (211,333) 0 (203,810)
Total Finance 200,873 198,063 (2,810) 176,836
-56-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1992 next page)
1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
General Government (continued)
Independent Audit:
Services and other charges 16,450 16,450 0 15,400
Total IndeDendent Audit 16,450 16,450 0 15,400 t
Legal:
Services and other charges $209,500 $202,220 (57,280) 5200,009
Total LeQal 209,500 202,220 (7,280) 200,009
Government Buildings:
Personal services 238,269 246,776 8,507 205,344
Supplies 22,718 29,617 6,899 23,903
Services and other charges 160,600 160,108 (492) 156,101
Capital outlay 32,077 29,169 (2,908) 53,195
Total Government Buildinas 453,664 ___438,543
Data Processing:
Supplies 8,000 5,353 (2,647) 7,438
Services and other charges 155,164 164,400 9,236 142,634
Capital outlay 140,989 122,787 (18,202) 72,610
I Total Data Processina 304,153 292,540 (11,613)
Total General Government $1,874,155 $1,797,895 ($76,260) 51,591,108
I
-57-
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1992 next page)
1992
Actual Over
or Under(-) 1991
Budaet Actual BudQet Actual
Public Safetv
Police Protection:
Personal services $2,844,809 52,779,280 (565,529) $2,567,997
Supplies 40,147 40,636 489 38,057
Services and other charges 282,632 233,121 (49,511) 255,216
Capital outlay 91,855 95,740 3,885 76,417
Total Police Protection _3,259,443 3,148,777 (110,666) _2,937,687
Fire Protection:
Personal services 297,534 286,026 (11,508) 249,201
Supplies 23,400 22,565 (835) 22,005
Services and other charges 52,480 46,763 (5,717) 24,748
Capital outlay 85,630 62,609 (23,021) 329,838
Total Fire Protection 459,044 417,963 (41,081) 625,792
Protective Inspection:
Personal services 311,963 305,335 (6,628) 286,452
Supplies 1,700 1,157 (543) 3,616
Services and other charges 4,475 2,136 (2,339) 21,342
Capital outlay
Total Protective Insnection 318,523 308,628 (9,895) 311,471
Emergency Preparedness:
Personal services 39,294 23,643 (15,651) 47,742
Supplies 2,392 2,135 (257) 687
Services and other charges 9,152 3,472 (5,680) 5,354
Capital outlay 0 0 0 800
Total Emeraencv Preparedness 29,250 (21,588)
Animal Control:
Personal services 16,955 11,774 (5,181) 11,711
I i Supplies 500 322 (178) 1,949
Services and other charges 6,875 9,848 2,973 7,669
Capital outlay 15,350 12,358 (2,992) 0
Total Animal Control 39,680 34,302 (5,378) 21,329
Total Public Safetv 54,127,528 53,938,920 ($188,608) 53,950,862
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City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1992 next page)
1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
Public Works
Engineering Department:
Personal services $459,298 $423,429 ($35,869) $427,446
Supplies 4,700 2,928 (1,772) 3,594
Services and other charges 8,865 6,008 (2,857) 4,872
Capital outlay 1,200 1,077 (123) 3,015
Charged to other funds (213,501) (214,247) (746) (45,864)
Total Encrineerina DeDt. 260,562 219,195 (41,367) 393,063
Street Department:
Personal services 563,638 535,359 {28,279) 522,124
Supplies 159,800 125,361 (34,439) 128,765
Services and other charges 159,020 123,827 (35,193) 156,757
Capital outlay 90,248 61,856 (28,3y2) 113,530
Charged to other funds (100,000) (100,000) 0 (91,525)
Total Street DeDt. 872,706 746,403 (126,303) 829,651
Maintenance Shop:
Personal services 169,350 169,053 (297) 149,926
Supplies 212,925 216,867 3,942 219,502
Services and other charges 94,950 80,379 (14,571) 79,558
Capital outlay 0 0 4,781
Total Maintenance Shoo 477,225 466,299 (10,926) 453,767
Traffic Signals and Lights:
Services and other charges 181,200 159,243 (21,957) 147,423
Total Traffic 159,243 (21,957) 147,423
Weed Control:
Services and other charaes 3,050 0 3,148
Total Weed Control 3,050 3,050 0 3,148
Total Public Works $1,794,743 $1,594,190 ($200,553) $1,827,052
r
-59-
Cit of Brookl n Center S-2
Y Y
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1992 next page)
1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
Communitv Services
Health Inspection:
Service and other charges $88,930 $84,069 ($4,861) $75,215
Total Health Insoection 88,930 84,069 (4,861) 75,215
Social Services:
Service and other charges 30,510 0_
Total Social Services 30,510 30,510 0 29,491
Total Communitv Services 5119,440 5114,579 ($4,861) $104,706
Parks and Recreation
Administration:
Personal services 283,963 276,802 (7,161) 256,245
Supplies 8,300 11,741 3,441 11,269
Services and other charges 27,000 23,170 (3,830) 23,581
Capital outlay 0 0 0 17,697
Total Administration 319,263 311,713 (7,550) 308,792
Adult Programs:
Personal services 64,283 83,660 19,377 83,209
Supplies 60,595 45,490 (15,105) 47,320
Services and other charges 190,591 146,544 (44,047) 150,986
Total Adult Proarams 315,469 275,694 (39,775} 281,515
r
Teen Programs:
Personal services 7,837 5,525 (2,312) 5,858
Supplies 641 491 (150) 194
L Services and other charges 4,770 6,862 2,092 5,018
Capital outlay 600 0 (600) 1,774
Total Teen Proarams 13,848 12,878 (970) 12,844
Children's Programs:
Personal services 61,603 62,499 896 52,376
Supplies 11,313 10,563 (750) 9,560
Services and other charges 11,805 9,770 (2,035) 12,376
Capital outlay 197 0 (197)
Total Children's Proarams 84,918 82,832 (2,086) 74,312
-60-
S-2
City of Brooklyn Center (Continued from
General Fund prior page�
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL
For the Year Ended December 31, 1992
1992
Actual Over
or Under(-) 1991
Budaet Actual Budaet Actual
Parks and Recreation (continued)
General Programs:
Personal services $47,932 $46,580 ($1,352) 539,105
Supplies 2,281 8,901 6,620 2,235
Services and other charges 44,268 33,818 (10,450) 40,265
Total General Proarams 94,481 (5,182} -g1,605
Community Center:
Personal services 338,773 282,981 (55,792) 285,618
Supplies 65,541 66,550 1,009 38,114
Services and other charges 167,110 147,331 (19,779) 135,142
Capital outlay 12,736 10,297 (2,439) 18,405
Total Communitv Center 584,160 507,159 (77,001) 477,279
Park Maintenance:
Personal services 347,874 322,679 (25,195) 338,459
Supplies 77,000 56,332 (20,668) 67,485
Services and other charges 127,350 95,583 (31,767) 113,427
Capital outlay 42,010 29,642 (12,368) 126,192
Charged to other funds 0 0 0 (11,525)
Total Park Maintenance 504,236 (89,998) 634,038
Total Parks and Recreation $2,006,373 51,783,811 (5222,562) $1,870,385
Economic Develonment
Convention Bureau:
Services and other charges 182,000 187,606 5,606 177,179
Total Economic Develo�ment $182,000 $187,606 55,606 $177,179
Nondenartmental
Expenditures not Charged to
Departments:
Personal services 146 3,099 2,953 181,410
Supplies 25,000 19,595 (5,405) 19,876
Services and other charges 331,488 230,542 (100,946) 210,720
Capital outlay 22,200 20,037 (2,163) 2,143
Total Nondeoartmental $378 834 $273,273 ($105,561) 5414,149
Total Expenditures 510,483,073 $9,690,274 ($792,799) $9,935,441
-61-
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The S ecial Revenue Funds are established to account for revenues
P
derived from taxes and/or other specific revenue sources. These
resources are usually restricted by statute, City Charter or ordinance
to finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the
accounting period in which the related liability is incurred.
Earle Brown Farm Tax Increment Financina District. This fund has the
authority to collect tax increments which are used for the historic
restoration of the Earle Brown Farm and for debt service payments of
bonds which also issued for that purpose.
Diseased Tree Removal Fund: This Fund was established to account for
the collection of resources and expenditure of these resources for
diseased tree control. Costs are reimbursed by private property
owners, or the City, depending upon where the tree was located.
Communitv Develobment 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-
City of Brooklyn Center B-1
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 1992
Earle Brown
Tax Incr. Diseased Community
Financing Tree Development Totals
District Removal Block Grant 1992 1991
ASSETS
Cash and investments $8,019 $29,284 $37,303 $62,481
Accounts receivable 719 719 2,020
Deferred special assessments 31,639 31,639 33,963
Delinquent special assessments 1,767 1,767 1,440
Due from other governments $206,389 206,389 66,922
TOTAL ASSETS $8,019 $63,409 $206,389 $277,817 $166,826
a, LIABILITIES AND FUND BALANCES (DEFICITS�
Liabilities
Accounts payable $6,533 $6,533 $6,863
Intergovernmental payable 49,671 49,671 0
Due to other funds $206,389 206,389 66,922
Temporary improvement notes 1,525,000 1,525,000 1,779,215
Deferred revenue $33,407 33,407 35,403
Advances from other funds 698,143 698,143 698,143
Total Liabilities 2,279,347 33,407 206,389 2,519,143 2,586,546
Fund Balances (Deficitsl
Unreserved (2,271,328) 30,002 0 (2,241,326) (2,419,720)
Total Fund Balances (Deficitsl (2,271,328) 30,002 0 (2,241,326) (2,419,720)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $8,019 $63,409 $206,389 $277,817 $166,826
i
City of Brookiyn Center B
Special Revenue Funds (Continued next page)
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1992
Earle Brown Farm
Tax Increment District Diseased Tree Removal
Over Over
Under(-) Under(-)
Budget Actual Budget BudAet Actual Budqet
Revenues
Propertytaues $1,308,500 $1,379,425 $70,925
Special assessments $15,000 $17,650 $2,650
Total ProoertvTaxes 1,308,500 1,379,425 70,925 15,000 17,650 2,650
Intergovernmental:
Federal grants
Total Intergovernmental
Charges for services:
Fees 49,500 18,770 (30,730)
Total Char9es for Services 49,500 18,770 (30,730)
Miscellaneous
Investmenteamings 500 1,205 705
Land Sale 336,327 $336,327
Total Miscellaneous 336,327 $336,327 500 1,205 705
Total Revenues 1,308,500 1,715,752 407,252 65,000 37,625 (27,375)
II
Exoenditures
Services and other charges 53,032 25,681 (27,351) 65,000 29,122 (35,878)
Capital outlay 146,370 137,590 (8,780)
Interest 160,000 119,511 (40,489)
I
Total Ex�enditures 359,402 282,782 (76,620) 65,000 29,122 (35,878)
Excess of Revenues Over Exoenditures 949,098 1,432,970 483,872 0 8,503 8,503
Other Financina Sources or Uses(-)
Operatingtransfersout (1,114,774) (1,263,079) (148,305)
Sale of Bonds
Total Other Financina Sources or Uses(-1 (1,114,774) (1,263,079) (148,305)
Excess or Deficiencv of Revenues and Other Sources
Over F�coenditures and Other Uses (165,676) 169,891 335,567 0 8,503 8,503
Fund Balances (Deficitsl Januarv t (2,441,219) (2,441,219) 0 21,499 21,499 0
Fund Balances (Deficits) December 31 ($2,606,895) ($2,271,328) $335,567 $21,499 $30,002 $8,503
-64-
City of Brooklyn Center B
Special Revenue Funds (Continued from prior page)
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1992
Community Development
Block Grant Fund Totals
Over Over
Under(-) 1992 1992 .Under(-) 1991
Buds�et Actual Budget Budget Actual Budget Actuai
Revenues
Propertytaxes $1,308,500 $1,379,425 $70,925 $1,377,594
Special assessments 15,000 17,650 2,650 16,730
Total ProaertvTaxes 1,323,500 1,397,075 73,575 1,394,324
Intergovernmental:
Federal grants $215,761 $251,747 $35,986 215,761 251,747 35,986 180,440
Total interaovernmental 215,761 251,747 35,986 215,761 251,747 35,986 180,440
Charges for services:
Fees 49,500 18,770 (30,730) 49,744
Total Charqes for Services 49,500 18,770 (30,730) 49,744
Miscellaneous:
Investmentearnings 1,205 1,205 346
Land Sale 336,327 336,327
Total Miscellaneous 337,532 337,532 346
Total Revenues 215,761 251,747 35,986 1,588,761 2,005,124 416,363 1,624,854
Exoenditures
Services and other charges 118,032 54,803 (63,229) 138,884
Capital outlay 146,370 137,590 (8,780) 380,729
Interest 160,000 119,511 (40,489) 229,446
Total Expenditures 424,402 311,904 (112,498) 749,059
Excess of Revenues Over Exnenditures 215,761 251,747 35,986 1,164,359 1,693,220 528,861 875,795
Other Financina Sources or Uses(-1
Operatingtransfersout (215,761) (251,74� (35,986) (1,330,535) (1,514,826) (184,291) (1,743,29�
Sale of Bonds 0 0 0 5,996,855
Totai Other Financina Sources or Uses(-1 _(215,761) (251,74� (35,986) (1-330,535) (1,514,826) (184,291) 4,253,558
F�ccess or Deficiencv of Revenues and Other Sources
Over Ex�enditures and Other Uses 0 0 0 (166,176) 178,394 344,570 5,129,353
Fund Balances (Deficiis) Januarv 1 0 0 0 (2,419,720) (2,419,720) 0 (7,549,073)
Fund Balances (Deficits) December 31� $0 $0 $0 ($2�585�896) ($2,241-326) $344,570 ($2�419,720)
-65-
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-
term general obligation debt.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the
accounting period in which the principal and interest are due.
The City's Debt Service funds included in this section are:
Certificates of Indebtedness Debt Service Fund: This Fund accounts
for the property taxes raised to pay the principal and interest on
certificates of indebtedness sold in 1991 to finance the purchase of
capital equipment in the General Fund.
General Obliaation State Aid Street Bonds Debt Service: This Fund
accounts for the accumulation of state aid allotments, for payment of
principal and interest on bonds issued in 1991 to finance a
comprehensive improvement and upgrading 69th Avenue North as a state
aid route.
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 author�.zed 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 C�eek
Trailway and the Arboretum.
General Obliaation Tax Increment Bonds of 1983 Fund: This Fund
accounts 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 1991 Funds: These
Funds were established to account for the accumulation of resources
for payment of principal and interest on general obligation bonds
issued in 1985 and 1991 to finance the purchase and redevelopment of
the historic Earle Brown Farm in Brooklyn Center.
Refundina Tax Increment Bonds of 1992: This fund was established to
account for the resources that will be used to advance refund the Tax
Increment Bonds of 1985.
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.
-66-
City of Brooklyn Center C-1
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 1992
Refunding
Tax Tax Tax
Park Increment Increment Increment Refunding
Bonds Bonds Bonds Bonds Bonds Totals
of 1980 of 1985 of 1991 of 1992 of 1987 1992 1991
ASSETS
Cash and investments $431,332 $453,003 $563,229 $4,186,114 $1,198,637 $6,832,315 $3,070,702
Temporary improvement notes 72,814 76,473 95,081 202,346 446,714 528,567
Taxes receivable 21,019 21,019 55,078
Special assessments receivable:
Deferred 586,902 586,902 797,085
Delinquent 16,016 16,016 8,700
rn
TOTAL ASSETS $525,165 $529,476 $658,310 $4,186,114 $2,003,901 $7,902,966 $4,460,132
LIABILITIES AND FUND BALANCES
Liabilities
Deferred revenue $21,019 $602,918 $623,937 $825,254
Total Liabilities 21,019 602,918 623,937 825,254
Fund Balances
Reserved 504,146 529,476 658,310 4,186,114 1,400,983 7,279,029 3,634,878
Total Fund Balances 504,146 529,476 658,310 4,186,114 1,400,983 7,279,029 3,634,878
TOTAL LIABILITIES AND FUND BALANCES $525,165 $529,476 $658,310 $4,186,114 $2,003,901 $7,902,966 $4,460,132
�w r �r r� �r r
r i■s r r i r�
City of Brooklyn Center C=2
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Year Ended December 31, 1992
Refunding
State Tax Tax Tax Tax
Certificates Aid Park Increment Increment Increment Increment Refunding
of Street Bonds Bonds Bonds Bonds Bonds Bonds Totals
Indebtedness Bonds of 1980 of 1983 of 1985 of 1991 of 1992 of 1987 1992 1991
Revenues
Property taxes $363,603 $268,547 $632,150 $736,120
Special assessments $266,077 266,077 301,662
Intergovenmental revenue 89,165 68,035 157,200 128,939
Investment earnings 6,232 17,107 $25,984 $10,641 109,242 75,646 244,852 266,896
Total Revenues 459,000 353,689 0 25,984 10,641 109,242 341,723 1,300,279 1,433,617
Expenditures
Principal $385,000 $115,000 300,000 585,000 100,000 250,000 145,000 1,880,000 940,000
a, Interest 74,000 192,254 34,810 24,569 400,300 336,200 109,811 23,260 1,195,204 746,401
Fiscal agent fees 400 938 842 784 400 4,350 7,714 3,886
Bond issuance costs 79,217 79,217
Total Expenditures 459,000 307,654 335,748 610,411 501,084 586,600 193,378 168,260 3,162,135 1,690,287
Excess or Deficiencv of Revenues
Over Exqenditures 0 (307,654) 17,941 (610,411) (475,100) (575,959) (84,136) 173,463 (1,861,856) (256,670)
Other Financinq Sources
Proceeds from sale of refunding bonds 4,270,000 4,270,000 0
Operating transfers in 307,654 308,103 620,000 250 1,236,007 1,266,100 'i
Total Other Financinq Sources 307,654 308,103 620,000 4,270,250 5,506,007 1,266,100
Excess or Deficiencv of Revenues and
Other Sources over Exqenditures 0 0 17,941 (610,411) (166,997) 44,041 4,186,114 173,463 3,644,151 1,009,430
Fund Balances Januarv 1 0 0 486,205 802,309 504,575 614,269 1,227,520 3,634,878 4,588,753
EquityTransfer In (Out) (191,898) 191,898 0 1,963,305
Fund Balances December 31 $0 $0 $504,146 $0 $529,476 $658,310 $4,186,114 $1,400,983 $7,279,029 $3,634,878
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are established to account for all
resources used for the construction or acquisition of capital
facilities by the City except those financed by Enterprise Funds.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
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 acquisitian of major permanent facilities having a relatively long
life; and/or to reduce debt incurred for capital outlays. The
financing sources of the Fund include ad valorem taxation, transfers
from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
Municibal State Aid for Construction Fund: This Fund was established
to account for the state allotment of gasoline tax collections used
for transportation related construction projects.
Special Assessment Construction Fund: This Fund was established to
account for the resources and expenditures required for the
acquisition and construction of capital facilities or improvements
financed wholly or in part by special assessments levied against
benefitted properties.
Housina and Redevelo�ment Fund (H.R.A.): This fund has authority to
levy an ad valorem property tax for the purpose of conducting housing
and redevelopment proj ects These proj ects are now done in the E. D. A.
Fund and all tax proceeds are transferred to that fund.
Economic Development Authoritv Fund: This Fund was established to
account for the Economic Development Authority (E.D.A.) of Brooklyn
Center. The E.D.A. carries out activities which previously were done
by the H.R.A., plus it has authority to operate an enterprise. The
Earle Brown Heritage Center operates under this authority and a
statement of its operations can be found in the enterprise fund
section of this report. The E.D.A. also does redevelopment and
housing projects, funded by transfers from the C.D.B.G. and H.R.A.
funds.
-69-
City of Brooklyn Center p
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1992
Municipal Special Economic
Capital State Aid Assessment Development Totals
Improvements for Construction Authority
Fund Construction Fund Fund 1992 1991
ASSETS
Cash and investments $5,253,806 $3,276,396 $278,463 $630,209 $9,438,874 $10,655,557
Temporary improvement notes 814,430 553,099 269,415 1,636,944 1,970,069
Accounts Receivable 1,500 245 1,745 0
Taxes receivable 1,777 9,291 11,068 5,157
Special assessments
Deferred 1,095,734 1,095,734 1,330,718
Delinquent 24,422 24,422 22,226
Due from other funds 206,389 206,389 66,922
Due from oth r v
e go ernments 939,788 939,788 810,559
Interfund loans:
Municipal liquor 199,201 99,201 216,895
Golf course 1,080,000 1,080,000 1,120,000
Earle Brown T.I.F. District 593,069 593,069 593,069
Restricted investments 1,000,000 1,000,000 1,000,000
r
TOTALASSETS $7,3�47,437 $5,363,852 $1,400,396 $2,115,549 $16,227,234 $17,791,172
LIABILITIES AND FUND BALANCES IDEFICITS)
Liabilities
Accounts payable $8,931 $14,081 $30,163 $33,479 $86,654 $215,401
Accrued salaries payable 1,522 1,522 0
Intergovernmental payable 22,880 22,880 0
Temporary improvement notes 1,414,857 1,414,857 1,626,246
Deferred revenue 939,788 1,120,156 9,291 2,069,235 2,168,660
Total Liabilities 8,931 953,869 2,565,176 67,172 3,595,148 4,010,307
Fund Balances (Deficits) i
Reserved:
Unexpended appropriations 653,308 404,650 1,057,958 1,142,651
Dedicated housing account 1,000,000 1,000,000 1,000,000
Advances to other funds 1,279,201 593,069 1,872,270 1,929,964
Bond proceeds 562,130 562,130 2,062,073
Unreserved 5,405,997 _2,850,134 (1,164,780) 1,048,377 8,139,728 7,646,177
Total Fund BalanceslDeficits) 7,338,506 4,409,983 (1,164,780) 2,048,377 12,632,086 13,780,865
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $7,347,437 $5,363,852 $1,400,396 $2,715,549 $16,227,234 $17,791,172
t
-70-
City of Brooklyn Center �=2
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1992
Municipal Special Housing Economic
Capital State Aid Assessment and Development
Improvements for Construction Redevelop Authority Totals
Fund Construction Fund Fund Fund 1992 1991
Revenues
Property taxes $128,362 $128,362 $130,022
Speciai assessments $374,442 374,442 344,968
Intergovernmental $700,120 14,497 $80,000 794,617 1,836,213
Investment earnings $437,165 332,166 27,330 125,917 922,578 824,793
Other 435,403 250 16,568 452,221 253,069
Total Revenues 872,568 1,032,536 401,772 142,859 222,485 2,672,220 3,389,065
Expenditures
Personal services 64,050 64,050 57,289
Supplies 5,142 296 106 754 6,298 150
Services and other charges 40,258 143,606 495,441 327,658 1,006,963 257,482
Capital outlays 424,845 639,070 1,277,187 186,167 2,507,269 2,419,557
Interest 105,511 105,511 135,294
Total6coenditures 470,245 782,972 1,878,245 558,629 3,690,091 2,869,772
Excess or Deficiencv of Revenues
i Over Exoenditures 402,323 249,564 (1,476,473) 142,859 (336,144) (1,017,871) 519,293
Other Financins� Sources or Uses(-)
Operating transfers in 1,770,613 394,606 2,165,219 629,454
Operating transfers out (2,153,268) (142,859) (2,296,12� (540,864)
Sale of Bonds 0 3,000,000
Total Other Financina Sources or Uses(-1 (2,153,268) 1,770,613 (142,859) 394,606 (130,908) 3,088,490
Excess or Deficiencv of Revenues and Other
Financina Sources Over Expenditures and
Other Financina Uses 402,323 (1,903,704) 294,140 0 58,462 (1,148,779) 3,607,783
Fund Balance (Deficitsl Januarv 1 6,936,183 6,313,687 (1,458,920) 1,989,915 13,780,865 8,209,777
Equity Transfer In ---_Y_--- 0 1,963,305
Fund Balance (Deficits) December 31 $7,338,506 $4,409,983 ($1,164,780) $0 $2,048,377 $12,632,086 $13,780,865
-71-
City of Brooklyn Center S-3
Capital Improvements Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnin4 to December 31, 1992
Project Over(-) Under
1992 to Date Expended
�e of Pro'� Approp riations Exqenditures Exaenditures Aqprop riations
Council Chambers lighting $5,279 $5,279 $5,279 $0
Police reception remodel 3,870 3,144 3,144 726
Air quality study 21,350 5,000 5,000 16,350
Community Center lights 18,784 19,378 19,378 (594)
Purchase 4100-51 st Ave. N. 159,397 156,740 156,740 2,657
Replat I-94 property 33,000 3,044 37,144 (4,144)
Community Center water slide 217,631 204,029 222,427 (4,796)
Community Center code corrections 31,400 29,241 31,605 (205)
Civic Center water heater 28,550 30,814 31,048 (2,498)
Community Center concession stand 14,391 13,576 14,391 0
Totals $533,652 $470,245 $526,156 $7,496
r
City of Brooklyn Center S-4
Municipal State Aid Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnina to December 31, 1992
Project Over(-) Under
1992 to Date Expended
Pro'� Approp riation Exqenditures Exqenditures Approq riations
69th Ave professional services $156,000 $26,933 $143,141 $12,859 i
69th Ave right of way acquisition 2,471,392 309,226 2,470,105 1,287
W 69th Ave soil correction 1,022,227 272,195 673,800 348,427
Trail improvement project 107,785 105,100 108,023 (238)
Humboldt Square trail improvement 44,298 38,615 44,298 0
Engineer certification training 5,000 1,545 1,545 3,455
TH252 signals 95 95 (95)
Sidewalk replacement 13,285 13,496 13,496 (211)
Transportation system study 10,000 6,629 6,629 3,371
Neighborhood street study 3,097 3,097 (3,097)
69th Ave landscaping 263,800 6,041 6,041 257,759
Totals $4,093,787 $782,972 $3,470,270 $623,517
City of Brooklyn Center S-5
Special Assessment Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From BeQinnina to December 31. 1992
Project Over(-) Under
1992 to Date Expended I
�e of Pro'� Approp riations Exqenditures Exaenditures Apqrop riations
West River Road 66th to 73rd $1,585,705 $8,723 $1,553,131 $32,574
69th Ave Reconstruction 2,258,024 1,780,853 2,054,156 203,868
Totals $3,843,729 $1,789,576 $3,607,287 $236,442
i
City of Brooklyn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were established to aceount for the financing of
self supporting activities of the City which render services on a user
charge basis to the general public.
Revenues and expenses in these Funds are recognized on the accrual
basis of accounting. Revenues are recognized in the accounting period
in which they are earned and become objectively measurable. Expenses
are recognized in the period incurred, if objectively measurable.
The City's Enterprise Funds included in this section are:
Municibal Liauor Fund: This Fund accounts for the operations of the
City's three municipal off-sale liquor stores.
Golf Course Fund: This fund accounts for operations of Centerbrook
Golf Course, a 9 hole, par 3 course owned by the City.
Earle Brown Heritaae Center Fund: This fund accounts for the
operation of a pioneer farmstead which has been historically preserved
and restored as a modern multipurpose facility. Its convention center
can host conferences, trade shows, and concerts seating 1,000 people
in either banquet or theater style. The "Inn On The Farm" is a bed
and breakfast with 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.
Recvclina and Refuse Fund: This fund accounts for the operation of
s ection
a state mandated recycling program. Expansion into refu e coll
will take place only when there is a clear advantage to be achieved
by it.
Water Utilities Fund: This Fund accounts for the provision of water
to customers. Administration, wells, water storage, and distribution
are included.
Sanitarv 5ewer Fund: This Fund accounts for the collection and pumping
of sanitary sewage through a system of sewer lines and lift stations.
Sewage is treated by the Metropolitan Waste Control Commission whose
fees represent about 75% of this fund's expenses.
Storm Drainaae Fund: This Fund accounts for the operations and
improvements of the storm water drainage system. It incorporates not
only the storm sewer system, but also water structures such as holding
ponds and facilities to improve water quality. Fees are based upon
the amount of water running off a property and vary with both size and
absorption characteristics of the parcel.
-75-
City of Brooklyn Center E-1
Enterprise Funds Continued next page)
COMBINING BALANCE SHEET
December 31, 1992
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
ASSETS Fund Fund Fund Fund Fund Fund Fund 1992 1991
Current Assets
Cash and cash equivalents $16,921 $29,296 $35,446 $73,170 $965,394 $2,760,463 $320,708 $4,201,398 $4,287,897
Accounts receivable net 2,769 68,442 67,861 137,887 34,380 311,339 303,019
Accrued revenue 20,976 105,969 268,575 84,972 480,492 404,598
Assessments receivable:
Deferred 88,945 2,861 91,806 105,688
Delinquent 3,839 3,839 2,690
Due from other governments 104,959 104,959 118,117
Inventories 263,136 8,164 12,661 283,961 315,085
Prepaid expenses 30,834 770 116,984 148,588 125,186
Total Current Assets 313,660 37,460 104,658 94,146 1,244,669 3,391,729 440,060 5,626,382 5,662,280
Restricted Assets
Temporary cash investments 3,700,000 300,000 4,000,000 4,000,000
Debt retirement investments 0 121,755
Total Restricted Assets 3,700,000 300,000 4,000,000 4,121,755
Fixed Assets
Mains and lines 7,714,754 5,563,479 13,278,233 12,857,595
Structures 294,852 303,321 9,507,420 4,136,093 1,907,684 16,149,370 15,486,152
Equipment 148,375 139,496 928,294 192,561 172,635 64,701 1,646,062 1,431,340
Land 107,405 1,391,711 925,000 23,938 3,388 2,451,442 2,451,442
Land improvements 4,228 30,728 2,600 37,556 37,556
Leasehold improvements 27,834 27,834 27,834
582,694 1,865,256 11,360,714 12,069,946 7,647,186 64,701 33,590,497 32,291,919
Less: Aliowance for depreciation 243,348 120,402 789,834 3,636,481 2,494,125 0 7,284,190 6,462,657
Total Fixed Assets 339,346 1,744,854 10,570,880 8,433,465 5,153,061 64,701 26,306,307 25,829,262
TOTALS $653,006 $1,782,314 $10,675,538 $94,146 $13,378,t34 $8,844,790 $504,761 $35,932,689 $35,613,297
r r r� r
�r r� r s
E-1
(Continued from
E. Brown prior page)
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1992 1991
LIABILITIES AND FUND EQUITY
Current Liabilities
Accountspayabie $68,008 $1,820 $92,149 $16,496 $26,918 $79,137 $9,649 $294,177 $505,275
Accrued salaries payable 4,536 792 7,476 4,318 854 47 18,023 29,952
Intergovernmental payable 19,326 19,326 0
Accrued vacation and sick pay 17,040 3,209 9,296 10,356 39,901 39,485
Temporary improvement note 0 8,000
Current portion of long-term debt 19,257 19,257 62,693
Total Current Liabilities 108,841 5,821 108,921 16,496 41,592 99,317 9,696 390,684 645,405
Lona-Term Liabilities
Construction loan 179,944 1,080,000 1,259,944 1,319,201
Total Lona-term Liabilities 179,944 1,080,000 1,259,944 1,319,201
Fund Eau�
Contributions 692,206 10,566,598 4,997,510 5,618,576 21,874,890 22,067,103
Retained earnings
Reserved:
Debt retirement 0 121,755
il I
S ec a assessments
92 7 4 2 1
P 8 ,86 95,645 108,378
Plant expansion 3;700,000 300,000 4,000,000 4,000,000 I
Unreserved 364,221 4,287 19 77,650 4,546,248 2,824,036 $495,065 8,311,526 7,351,455
Total Retained Earninos 364,221 4,287 19 77,650 8,339,032 3,126,897 495,065 12,407,171 11,581,588
Total Fund Eauitv 364,221 696,493 10,566,617 77,650 13,336,542 8,745,473 495,065 34,282,061 33,648,691
TOTALS $653,006 $1,782,314 $10,675,538 $94,146 $13,378,134 $8,844,790 $504,761 $35,932,689 $35,613,297
City of Brooklyn Center E
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
E. Brown
Municipal Golf Heritage Recyciing Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Operating Revenues Fund Fund Fund Fund Fund Fund Fund 1992 1991
Sales and user fees $2,664,667 $284,923 $795,157 $104,261 $896,857 $1,920,796 $494,456 $7,161,117 $6,471,067
Cost of sales 2,011,103 28,102 2,039,205 2,053,165
Net Oqeratinq Revenues 653,564 256,821 795,157 104,261 896,857 1,920,796 494,456 5,121,912 4,417,902
i
Operatinp Exqenses
Personal services 343,673 126,145 604,842 348,313 199,990 101,576 1,724,539 1,178,867
Supplies 8,358 13,883 60,576 399 105,388 12,995 3,481 205,080 203,955 I
Otherservices 51,496 10,219 307,791 103,534 173,799 1,483,480 102,370 2,232,689 2,591,627
Insurance 30,548 3,769 9,434 43,751 42,280
Utilities 20,367 9,770 120,715 134,905 16,889 302,646 256,339
Rent 36,031 17,385 53,416 51,744
Depreciation 28,764 25,435 335,605 233,447 194,879 818,130 752,106
Total Operatin4 Expenses 519,237 189,221 1,456,348 103,933 995,852 1,908,233 207,427 5,380,251 5,076,918
Oneratinalncome(Loss) 134,327 67,600 (661,191) 328 (98,995) 12,563 287,029 (258,339) (659,016)
E-2
(Continued from
prior page)
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1992 1991
Nonoperatin4 Revenues or Exqenses(-�
Investment earnings $1,200 $3,633 $4,792 $286,501 $221,547 $14,030 $531,703 $654,474
Special assessments:
Service hookups delinquencies 28,283 297 28,580 45,853
Intergovernmental revenue 0 71,862
Other revenue 1,115 1,767 263 3,145 2,537
Interest and fiscal agent fees (17,75� (56,000) ($9,141) (1,940) (84,838) (90,816)
Nonoeeratina Totals (15,442) (52,36� (9,141) 4,792 314,611 222,107 14,030 478,590 683,910
Income Before O�eratina Transfers 118,885 15,233 (670,332) 5,120 215,616 234,670 301,059 220,251 24,894
Operating Transfers In 334,727 334,727 359,125
Operating Transfers Out (65,000) (65,000) (147,895)
Netincome(Loss� 53,885 15,233 (335,605) 5,120 215,616 234,670 301,059 489,978 236,124
Depreciation on contributed assets
that reduces contributed capital 335,605 335,605 320,421
Retained EarninaslDeficiUJan. 1 310,336 (10,946) 19 72,530 8,123,416 2,892,227 194,006 11,581,588 11,025,043
Retained Earnings December 31 $364,221 $4,287 $19 $77,650 $8,339,032 $3,126,897 $495,065 $12,407,171 $11,581,588
City of Brooktyn Center E
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1992
E. Brown
Municipal Goif Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Cash flow5 from ooeratinq activities Fund Fund Fund Fund Fund Fund Fund 1992 1991
Operating income(loss) $134,327 $67,600 ($661,191) $328 ($98,995) $12,563 $287,029 ($258,339) ($659,016)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities
Depreciation 28,764 25,435 335,605 233,447 194,879 818,130 752,106
Changes in assets and liabilities
Accounts receivable 78 2,088 293 (13,857) (19,106) (27,819) (58,323) (169,583)
Inventories 28,464 (1,822) 4,482 31,124 12,112
Prepaid expenses (26,560) 2,295 863 (23,402) (17,244)
Accounts payable (39,520) (2,104) (24,829) (24,156) 1,357 (112,169) 9,649 (191,772) 115,929
0o Accrued salaries and leave (5,278) 954 7,796 (4,279) (10,753) 47 (11,513) 37,646
Other nonoperating income 1,115 30,050 560 31,725 48,390
Net cash provided bv (used for)
ooeratinq activities 121,390 90,063 (338,236) (23,535) 152,205 66,837 268,906 337,630 120,340
Cash flows from nonca�ital financina activities:
Net borrowings(repayments) under
revolving loan arrangement (25,693) (40,000) (65,693) (46,25�
Interest paid on revolving loan (17,75� (56,000) (9,141) (82,898) (87,121)
Operating grants received 0 71,862
Operating transfers in 334,727 334,727 359,125
Operating transfers out (65,000) (65,000) (147,895)
Netcash provided bv(usedfor)
noncapital financina activities (108 (96,000) 325,586 0 0 0 0 121,136 149,714
E-3
(Continued from
prior page)
E. Brown
Municipal Gotf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1992 1991
Cash flows from capital and related
financinq activities:
Capital contributions in aid of construction $151,167 $151,167 $378,847
Acquisition and construction of
capital assets ($4,253) ($10,62� (151,16� ($156,325) ($916,135) ($64,701) (1,303,208) (1,752,842)
Principal paid on revenue bonds (45,000) (45,000) (45,000)
Interest paid on revenue bonds (1,940) (1,940) (3,695)
Proceeds from sale of equipment 258 258 1,710
Netcash provided bv(usedfor)capital
and related financinq activities (4,253) (10,627) 258 0 (203,265) (916,135) (64,701) (1,198,723) (1,420,980)
Cash flows from investina activities:
Interest on investments 1,200 3,633 $4,792 286,501 221,547 14,030 531,703 654,474
Change in restricted assets 121,755 121,755 1,755
Netcash qrovided bvinvestinp
activities 1,200 3,633 0 4,792 408,256 221,547 14,030 653,458 656,229
Net increase (decrease) in cash and
cash equivalents 9,887 (12,931) (12,392) (f8,743) 357,196 (627,751) 218,235 (86,499) (494,69�
Cash and cash equivalents at
beQinnina of the vear 7,034 42,227 47,838 91,913 608,y98 3,388,214 102,473 4,287,897 4,782,594
Cash and cash equivalents at
end of the year $16,921 $29,296 $35,446 $73,170 $965,394 $2,760,463 $320,708 $4,201,398 $4,287,897
E-4
City of Brooklyn Genter
Municipal Liquor Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
1992 1991
Sales
Liquor $835,492 $838,198
Wine 286,301 302,435
Beer 1,373,225 1,393,410
Soft drinks 55,463 52,195
Other merchandise 114,186 92,602
Total Sales 2,664,667 2�678,840
Less: Cost of Sales 2,011,103 2,025,288
Net Operatinq Revenues 653,564 653,552
O�eratina Exp enses
Personal services 343,673 339,487
Supplies 8,358 8,781
Other services 51,496 58,085
Insurance 30,548 28,911
Utilities 20,367 20,715
Rent 36,031 34,747
Depreciation 28,764 26,175
Total OAeratina Exoenses 51_9,237 516,901
Oqeratinp Income 134,327 136,651
Nononeratinq Revenue or Expense(-�
Investment earnings 1,200 2,189
Other revenue 1,115 1,430
Interest and fiscal agent fees (17,757) (19,194)
Total Nonoqeratina, (15,442) (15,575)
Operatinq Transfers to General Fund 65,000 130,000
Net Income (Lossl 53,885 (8,924)
Retained Earninqs Januarv 1 310,336 319,260
Retained Earnings December 31 $364,221 $310,336
-82-
E-5
City of Brooklyn Center
Golf Course Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
1992 1991
Oqeratina Revenues
Green fees $216,491 $209,976
Rentals 8,885 8,622
Leagues 6,217 6,147
Golf lessons 11,433 13,706
Concessions 18,599 17,771
Merchandise 20,545 19,216
Pop machine 2,302 2,849
Miscellaneous 451 (187)
Total Oneratina Revenues 284,923 278,100
Less: Cost of Sales 28,102 27,877
Net Operatinp Revenues 256,821 250,223
Operatin Ex penses
Personal services 126,145 122,901
Supplies 13,883 17,223
Other services 10,219 10,680
Insurance 3,769 4,261
Utilities 9,770 7,623
Depreciation 25,435 23,963
Total O�eratina Exqenses 189,221 186,651
Operatina Income 67,600 63,572
Nononeratina Revenue or Exbense(-�
Investment earnings 3,633 6,238
Interest and fiscal agent fees (56,000) (57,500)
Total Nonoperatinq (52,367) (51,262)
Net Income 15,233 12,310
Retained Earninas (Deficitl Januarv 1 (10,946) (23,256)
Retained Earnings (Deficit) December 31 $4,287 ($10,946)
-83-
E-6
City of Brooklyn Center
Earle Brown Heritage Center Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
1992 1991
Oaeratino Revenues
Conventions $496,704 $342,909
Inn on the Farm 185,180 153,159
Office Rents 113,273 90,918
Total Oaeratino Revenues 795,157 586,986
O�eratino Exnenses i
Personal services 604,842 433,681
Supplies 60,576 62,644
Other services 307,791 318,701
Insurance 9,434 9,108
Utilities 120,715 94,552
Rent 17 385 16 997
Depreciation 335,605 320,421
Total Oneratina Ex[�enses 1,456,348 1,256,104
Oqeratina Loss (661,191) (669,118)
Nonoqeratina Revenue or Exnense(-1
I nterest and fiscal agent fees (9,141) (10,427)
Total Nono�eratin 9,141 10,427)
q
Oqeratinq Transfers In 334,727 359,125
Net Loss (335,605) (320,420)
Depreciation on contributed assets that
reduces contributed canital 335,605 320,421
Retained Earninas Januarv 1 19 18
I
Retained Earnings December 31 $19 $19
-84-
E-7
City of Brooklyn Center
j Recycling Refuse Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
I 1992 1991
Operatino Revenues
Recycling service fees $103,862 $103,120
Recycling container sales 399 6,789
Total Ooeratinq Revenues 104,261 109,909
Operatina Exaenses
Supplies 399 655
Other services 103,534 160,767
Total Oqeratin4 Exnenses 103,933 161,422
I I OaeratinQ Income (Lossl 328 (51,513)
NonooeratinQ Revenues
Intergovernmental revenue 71,862
Investment earnings 4,792 4,592
Nonoberatinq Totais 4,792 76,454
Net Income 5,120 24,941
I j Retained Earninqs Januarv 1 72,530 47,589
i� Retained Earnings December 31 $77,650 $72,530
-85-
City of Brooklyn Center E-8
Water Utilit Fund
Y
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
Totals
1992 1991
Oqeratin4 Revenues
Service to customers $843,697 $675,708
Sale of ineters t8,401 18,280
Penalties 34,759 9,434
Total Oneratina Revenues 896,857 703,422
Operatino Exqenses
Personal services 348,313 233,744
Supplies 105,388 94,945
Utilities 134,905 116,516
Contractual services 173,799 251,903
Depreciation 233,447 253,574
Total Oneratin4 Exaenses 995,852 950,682
Operatinc� Loss (98,995) (247,260)
Nonoperatino Revenues or Expenses(-1
Investment earnings 286,501 344,834
Special assessments (for hookups delinquencies) 28,283 44,480
Other 1,767 1,107
Interest and fiscal fees (1,940) (3,695)
Total Nononeratina 314,611 386,726
Net Income 21 1 139 466
5,6 6
Retained Earninas Januarv 1 8,123,416 7,983,950
Retained Earnings December 31 $8,339,032 $8,123,416
-86-
City of Brooklyn Center E-9
Sanitary Sewer Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
Totals
1992 1991
Oqeratina Revenues
Service to customers $1,920,796 $1,697,886
Penalties 41,884
Total O�erat�nQ Revenues 1,920,796 1,739, 0
Operatina Expenses
Personal services 199,990 135,521
Supplies 12,995 19,685
Utilities 16,889 16,933
Contractual services 71,898 191,966
Metro Waste Control Commission Charges 1,411,582 1,348,313
Depreciation 194,879 1
Total O�eratinq Exr�enses 1,908,233 1,840,391
I� Oqeratina Income or Loss(-1 12,563 (100,621)
Nonoperatinq Revenues
Investment earnings 221,547 293,993
Special assessments (for hookups delinquencies) 297 1,373
Other 263
Total Nonoqeratinq 222,107 295,366
Net Income 234,670 194,745
Retained Earninqs Januarv 1 2,892,227 2,697,482
Retained Earnings December 31 $3,126,897 $2,892,227
-87-
City of Brooklyn Center E-10
Starm Drainage Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1992
1992 1991
Oaeratin4 Revenues
Service to customers $494,456 $374,040
Total O�eratina Revenues 494 456 374 040
Operatino Ex�enses
Personal services 101,576 2,833
Supplies 3,481 22
Contractual services 102,370 161,912
Total O�eratin4 Exnenses 207,427 164,767
Oneratin4lncome 287,029 209,273
Nononeratina Revenues
Investment earnings 14,030 2,628
Total Nonoqeratinq 14,030 2,628
Operating Transfer to General Fund 17,895
Net Income 301,059 194,006
Retained Earnin4s Januarv 1 194,006
Retained Earnings December 31 $495,065 $194,006
-$8-
Cit of Brookl n Center Minnesota
Y Y
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement
basis, for the financing of goods or services provided by one
department to other departments of the City.
Revenues and expenses in these funds are recognized on the accrual
basis of accounting. Revenues are recognized in the accounting period
in which they are earned and become measurable. Expenditures are
recognized in the accounting period in which they are incurred.
Public Emplovees Retirement Fund: This fund provides certain health
care insurance benefits for City employees who retire before age 65.
Substantially all of the City's full time employees may be eligible
for those benefits from the time they qualify for an unreduced PERA
pension until they reach age 65 or become eligible for medicare.
Currently investment earnings are sufficient to provide benefits. In
the event that future costs would exceed earnings, other funds would
be charged for the costs associated with their employees.
-89-
City of Brooklyn Center F-1
Internal Service Fund
COMPARATIVE BALANCE SHEET
December 31, 1992
Emplovee Retirement Fund
ASSETS 1992 1991
Current Assets
Cash, cash equivalents and
temporary cash investments $1,017,036 $961,188
Total Current Assets 1,017,036 961,188
TOTAL ASSETS $1,017,036 $961,188
LIABILITIES AND FUND EQUITY,
Current Liabilities
Accrued hsalth liability $191,090 $196,869
Total Current Liabilities 191,090 196,869
Fund E uit
Retained Earnings
Unreserved 825,946 764,319
Total Fund Equitv 825,946 764,319
TOTAL LIABILITIES AND FUND EQUITY $1,017,036 $961,188
-90-
City of Brooklyn Center F-2
Internal Service Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
December 31, 1992
Emplovee Retirement Fund
1992 1991
Operatina Exnenses
Personal services $2,420 $19,678
Total Oneratinq Exqenses 2,420 19,678
OperatinQ Loss (2,420) (19,678)
Nonoqeratina Revenues
Investment earnings 64,047 69,884
Total Nonoqeratin 64 047 69 884
q
Net Income 61,627 50,206
Retained Earninas Januarv 1 764,319 714,113
Retained Earnings December 31 $825,946 $764,319
I
-91-
City of Brooklyn Center F-3
Internal Service Fund
i COMPARATIVE STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1992
Emplovee Retirement Fund
1992 1991
Cash flows from oneratina activities:
Operating loss ($2,420) ($19,678)
Adjustments to reconcile operating loss to
net cash used for operating actvities
Increase (decrease) in assets and liabilities
Accrued health insurance liability (5,779} 12,972
Net cash used for operatinq activities (8,199) (6,706)
Cash flows from investinQ activities
Interest on investments 64,047 69,884
Net cash nrovided bv investina activities 64,047 69,884
Net increase in cash and cash equivalents 55,848 63,178
Cash and cash eouivalents at beainnina of vear 961,188 898,010
Cash and cash equivalents at end of year $1,017,036 $961,188
I
i
-92-
City of Brooklyn Center, Minnesota
AGENCY FUNDS
Agency Funds are established to account for assets held by the City
as an agent for other City Funds, governments, or individuals.
The Agency Funds are maintained on the modified accrual basis of
accounting.
The City's Agency fund included in this section is:
Emnlovee Deferred Compensation Fund: This fund was established to
account for funds on deposit with the trustees who administer the City
sponsored deferred compensation plan.
i
I�
I
-93-
i�
City of Brooklyn Center G
Employee Deferred Compensation Fund
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 1992
Balance Balance
December 31, December 31,
1991 Additions Deductions 1992
ASSETS
Investments for deferred
compensation plans held
by trustees (1) $2,046,095 $330,533 $135,476 $2,241,152
TOTAL ASSETS 2 046 095 330 533 135 476 2 241 152
LIABILITIES
Due to employees for
deferred compensation $2,046,095 $330,533 $135,476 $2,241,152
TOTAL LIABILITIES $2,046,095 $330,533 $135,476 $2,241,152
(1) Investments are reported at market value.
-94-
City of Brooklyn Center, Minnesota
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group was established to account for
the City's fixed assets which are not accounted for in an enterprise
fund, and which are tangible in nature, have a life longer than the
current fiscal year, and have a significant value. Depreciation is
not recorded on those assets.
-95-
City of Brooklyn Center S-6
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1992
Balance Balance
January 1, December 31,
1992 Acauisitions Disaosals 1992
Investments in General Fixed Assets
Land $2,213,061 $155,398 $2,368,459
Buildings and improvements 4,588,978 267,865 $140 4,856,703
Park improvements 2,858,857 10,255 2,869,112
Furniture 741,046 219,391 22,835 937,602
Departmental equipment 3,841,232 459,278 180,535 4,119,975
Total Investments in General
Fixed Assets $14,243,174 $1,112,187 $203,510 $15,151,851
Sources of Inv
estments
General Indebtedness $807,704 $480,000 $10,051 $1,277,653
General Fund revenues 6,242,355 208,923 78,267 6,373,011
Liquor store income 219,755 2,735 217,020
Contributions 236,284 2,940 233,344
Capital projects funds 5,670,223 423,264 96,240 5,997,247
Federal grants 1,066,853 13,277 1,053,576
Total Sources of Investments $14,243,174 $1,112,187 $203,510 $15,151,851
-96-
rl i I� If�
S-7
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1992
Other
Function Land Buildinas Imqrovements E ui ment Total
General government $416,284 $416,284
Government buildings $303,770 $4,270,868 $286,845 48,802 4,910,285 i,
Public safety 450 2,355,994 2,356,444
Public works 9,793 1,511,520 1,521,313
Recreation 286,325 286,325
Parks 2,064,689 575,592 2,582,267 438,652 5,661,200 I I
Totals $2,368,459 $4,856,703 $2,869,112 $5,057,577 $15,151,851
S-8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 1992
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 1992 Additions Deductions 1992
General government $344,766 $94,309 $22,791 $416,284
Government buildings 4,642,559 267,866 140 4,910,285
Public safety 1,937,102 473,718 54,376 2,356,444
Public works 1,537,239 99,084 115,010 1,521,313
Recreation 275, 794 10, 799 268 286,325
Parks 5,505,714 166,411 10,925 5,661,200
Totals $14,243,174 $1,112,187 $203,510 $15,151,851
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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.
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City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1992 and 1991
December 31,
1992 1991
Amounts Availabie and to be Provided
Amounts available in Debt Service Funds $7,279,029 $3,634,878
Amounts to be provided:
From future tax increments 9 070 971 9 730 122
From future gas tax allocations 3,000,000
Total Available and to be Provided $19,235,000 $16,365,000
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General Lonq-Term Debt Pav�ble
General Obligation Bonds $310,000 $610,000
Certificates of indebtedness 545,000 450,000
G.O. State Aid Street Bonds 2,885,000 3,000,000
Special Assessment Bonds 385,000 530,000
Tax Increment Bonds 15,110,000 11,775,000
Total General Long Term Debt $19,235,000 $16,365,000
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City of Brooklyn Center I
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1992
General Obligation G.O. State G.O. Special G.O. Tax Total Debt
Bonds Certificates Aid Street Bonds Assessment Bonds Increment Bonds Service Reouirements
Year Principal Interest Principal Interest Principal Interest Princieal Interest Princi�al Interest
1993 $695,000 $54,980 $135,000 $171,180 $110,000 $17,158 $490,000 $933,468 $1,430,000 $1,176,786
1994 160,000 12,400 145,000 164,071 100,000 11,912 535,000 904,570 940,000 1,092,953
1995 150,000 156,325 85,000 7,131 590,000 871,130 825,000 1,034,586
1996 160,000 147,872 50,000 3,550 670,000 831,995 880,000 983,417
1997 170,000 138,588 40,000 1,100 1,140,000 777,523 1,350,000 917,211
0 1998 180,000 128,478 1,270,000 705,825 1,450,000 834,303 I
1999 190,000 117,560 1,450,000 622,383 1,640,000 739,943
2000 205,000 105,706 1,610,000 526,271 1,815,000 631,977 I I�
2001 220,000 92,740 1,810,000 416,806 2,030,000 509,546 I
2002 230,000 78,788 2,005,000 292,282 2,235,000 371,070 I
2003 245,000 63,821 2,115,000 155,820 2,360,000 219,641
2004 265,000 47,496 1,425,000 42,750 1,690,000 90,246
2005 285,000 29,616 285,000 29,616
2006 305,000 10,141 305,000 10,141
$855,000 $67,380 $2,885,000 $1,452,382 $385,000 $40,851 $15,110,000 $7,080,823 $19,235,000 $8,641,436
City of Brooklyn Center, Minnesota
STATISTICAL SECTION
The statistical section presents comparative statistical data for the
past ten years, and other pertinent information involving taxes,
revenues, expenditures, bonded debt, property valuations, insurance
coverage and miscellaneous statistics.
This information is intended to be useful and of interest to investors
in City bonds, financial institutions, and others interested in
municipal government financial statistics.
With the exception of Table 9(Computation of Direct and Overlapping
Debt) and information concerning school districts in the Miscellaneous
Statistical Facts section, all statistical 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.
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City of Brooklyn Center TABLE 1
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last Ten Fiscal Years
Community
Fiscal General Public Public Health Parks and Economic Non- Total
Year Government Safetv Works Services Recreation Develo�ment Deaartmental Expenditures
1983 $1,054,064 $1,875,122 $1,288,081 $28,663 $1,268,907 $91,953 $5,606,790
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
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1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436
1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109
1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571
1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517
1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441
1992 $1,797,895 $3,938,920 $1,594,190 $114,579 $1,783,811 $187,606 $273,273 $9,690,274
(1) Funds included in this table are the General Fund.
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City of Brooklyn Center TABLE 2
GENERAL GOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1)
Last Ten Fiscal Years
General Other
Fiscal Property Licenses lntergovern- Charges for Fines and Financing Total
Year Taxes Permits mental Services Forfeitures Misc. Sources Revenue
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
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
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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 3,201,888 919,537 215,804 443,623 174,925 9,108,070
1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990
1992 $4,291,322 $332,186 $3,133,495 $794,876 $148,701 $301,771 $620,000 $9,622,351
(1) Funds included in this table are the General Fund.
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(TABLE3) 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 Taxes as
Year During Fiscal During Fiscal During Fiscal Total as a�!o of Taxes a% of
Collected Tax Levy� Period Period Period Collections Tax Levv Receivable Tax Lew
1983 $2,482,369 $2,420,772 97.52% $75,437 $2,496,209 100.56% $286,787 11.55%
1984 2,836,968 2,721,413 95.93% 111,596 2,833,009 99.86% 290,746 10.25%
1985 2,931,266 2,657,094 90.65% 178,709 2,835,803 96.74% 386,209 13.18%
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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 3,857,576 94.25% 12,241 3,869,817 94.55% 221,097 5.40%
1991 4,659,449 4,478,115 96.11 79,443 4,557,558 97.81 249,882 5.36%
1992 $5,072,044 $4,818,439 95.00% $6,898 $4,825,337 95.14% $351,199 6.92%
(1) Funds included in this table are the General Fund, Certificates of Indebtedness, Park Bonds, and H.R.A.
(2) Includes property taxes only; lodging tax and tax increments are excluded.
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City of Brooklyn Center TABLE 4
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (1)
Last Ten Fiscal Years
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992(4�
Population 30,830 30.820 30,630 30.267 29,759 29.420 28,578 28,810 28,887 28,598
Real PropertY
Assessed value (2): Tax Tax (3) Tax Tau
City. Capacity Capacity Capacity Capacity
Residential $75.252.072 578.112.774 $81.072.128 a90.912.548 591,929.246 $90,162.927 511.834.805 510.133.274 59.730.898 59.193.012
Non—resi dential 122,369,087 124,305,853 126,444,994 125.109.658 139,433,999 154,031,355 19,707.624 16,185,832 16,305,868 16,013,701
Area—wide allocation (t.437.243) (3.386.456) (2.134,213) (2.097.533) (1.345.864) (8.148.681) (977.841) (1.365.23� (1.384.936) (1.550.09�
196.183,916 199,052,171 205,382,909 213,924,673 230,017,381 236,045,601 30,564,588 24,953.871 24,651.830 23,656,616
Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,518 1,315,724 1,374,157
Total assessed value 196,183,916 198,974,171 204,640,435 209,867,062 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459
Estimated Market Value 725,476,089 775,162,400 788,107,800 813,377,800 854,846.550 910,336,300 950,463,900 1,000,2�,000 1,016,754,000 1,015,968,800
Personal Prope�
i Assessed value 3,973,587 4,148,726 4,276,221 4,297,916 4,296,001 4,510,313 190,299 530,528 539,121 543,237
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Estimated marketvalue 9,240,000 9,648,200 9,944,700 9,981,200 9,990,700 10,489,100 3,627,500 10,610,520 10,564,700 11,349,900
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Total Taxable Proaertv
Assessed value $200,157,503 5203,122,897 5208,916,656 5214,158,978 5228.875,794 5230,771,441 528.657.382 523,943,879 S23,875,227 522.825,�6 I
Estimated marketvalue $734,716,089 $784,810,600 $798,052,500 5823,359,000 5864,837,250 a920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 51,012,179,300
Assessed Value as a aercent of
Estimated Market Value 27.249b 25.889b 26.18�fo 26.0196 26.4696 25.064b 3.009b 2.374b 2.3296 2.269b
Per Caoita Valuations
Assessed Value 56,492 56,591 a6,821 $7,076 S7.�1 $7,844 S1.003 $831 $827 5798
Estimated Market Value $23,831 $25,464 $26,055 527.203 S29,061 531,299 533,386 $35,088 535,563 535,393
(1) Source: City of Brooklyn Center Assessing Department
(2) The Minnesota Legislature changed the property tau system for taues payable in 1989. The tax base of property was changed from assessed values to tax capaciry values.
(3) The reduction in residential values is due to a change in the state mandated formula from gross tax capacity to net tax capacity.
(4) Population Source: City of Brooklyn Center Planning Department Estimate
City of Brooklyn Center TABLE 5
DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES (1)
Last Ten Fiscal Years
TAX RATES IN MILLS (2) Hennepin
School Districts Gounty 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 3 School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka
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(2)
1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542
1990 17.479 1.103 42.099 57.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919
1991 19.208 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466
1992 20.922 0.513 54.696 65J66 58.723 56.525 40.888 117.019 128.089 121.046 118.335
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TAX LEVIES iN DOLLARS Hennepin
School Districts County Total City,
Year Vo-Tech No.286 No.279 No.281 No.11 Special Schools,
Collectible Cit 3 School Earl Brown Osseo Robbinsdale Anoka Districts and Countv
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 3,476,1Q4 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
1992 $5,072,385 $123,029 $4,596,776 $3,516,409 $4,444,416 $1,293,144 $8,344,678 $27,390,837
(1) Sources: (1983-1991) Hennepin County Department of Property Tax Public Records.
(1992) City of Brooklyn Center Assessing Department
(2) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989.
(3) Includes tax levy for the Housing and Redevelopment Authority of Brooklyn Center.
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City of Brooklyn Center TABLE 6
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Last Ten Fiscal Years
Percent
Current Collections Total
Special Percent Collection Collections
Year Assessment of of Prior Total to Current
Collected Billinqs Amount Billinqs Years Collections LevX
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% I
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% �i
1987 572,851 552,168 96.39% 3,139 555,307 96.94% I
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%
1991 612,744 595,362 97.16% 23,135 618,497 100.94%
1992 $558,265 $533,439 95.55% $13,801 $547,240 98.03%
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 Pooulation Value Debt (1� Service Fund Debt Values Ca ita
1983 30,830 $200,157,503 $2,800,000 $678,318 $2,121,682 1.06% $68.82
1984 30,820 203,122,897 2,545,000 628,786 1,916,214 0.94% 62.17
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
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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 Po�ulation Value Debt Service Fund Debt Value C apita
1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92
1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40
1991 28,887 23,875,227 610,000 486,205 123,795 0.52�10 4.29
1992 (2) 28,598 $22,825,696 $310,000 $504,146 ($194,146) -0.85% ($6.79)
(1) Includes only bonded debt supported by property taxes.
(2) Source: City of Brooklyn Center Planning Department Estimate
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City of Brooklyn Center Table 8
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1992
Estimated market value for taxes payable in 1992 $1,012,179,300
Debt limit, 2% of market value 20,243,586
Total bonded debt 18,690,000
Deductions (See Note 5):
A. Bonds:
1. Special Assessment Bonds 385,000
2. State Aid Street Bonds 2,885,000
3. Tax Increment Bonds 15,110,000
18,380,000
B. General Debt Service Funds 504,146
Total Deductions 18,884,146
Total Debt Applicable to Debt Limit (194,146)
Legal Debt Margin, December 31, 1992 $20,437,732
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City of Brookiyn Center TABLE 9
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1992
City's Share
Governmental Unit Gross Debt Sinkin4 Funds Net Debt Percent Amount
Direct Debt: Citv of Brooklvn Center (1) $310,000 $504,146 ($194,146) 100.0% ($194,146)
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 590,000 388,417 201,583 10.2% 20,561
No.11 Anoka 61,913,635 5,805,907 56,107,728 5.9% 3,310,356
No. 279 Osseo 59,541,292 1,648,708 57,892,584 26.8% 15,515,213
No. 286 Brooklyn Center 5,500,000 31,000 5,469,000 100A% 5,469,000
Metropolitan Transit 5,850,000 2,900,000 2,950,000 1.5% 44,250
Metropolitan Council (2) 88,375,000 27,597,379 60,777,621 1.5% 911,664
Hennepin County 65,895,000 5,752,983 60,142,017 2J% 1,623,834
Hennepin County Park Reserve District 8,350,000 693,131 7,656,869 2J% 206,735
Total Overlabqina Debt 296,014,927 44,817,525 251,197,402 27,101,613 I
Total Direct and Overlapping Debt $296,324,927 $45,321,671 $251,003,256 $26,907,467
(1) Includes only general obligation debt which is being repaid through property taxes.
(2) Excludes $293,455,000 less $31,327,349 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.
Direct Overlapping
Comqarative Net Debt Ratios Charaeable to Citv Total Debt Debt
Debt to tax capacity value $22,825,696 117.88% -0.85% 118.73%
Debt to market value $1,012,179,300 2.66% -0.02% 2.68%
Per capita debt, population 28,598 $940.89 ($6.79) $947.68
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TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscai Years
Debt Service
Total (1) Totai (2) as a Percent
Debt General of General
I Year PrinciQal Interest Service Exqenditures Exqenditures
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 434 517 11.83%
530,000 585,992 1,115,992 9,
199� 940,000 746,401 1,686,401 9,935,441 16.97%
1992(4) $1,880,000 $1,195,204 $3,075,204 $9,690,274 31.73%
(1) For years 1983 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.
From 1991 onward, Certificates of Indebtedness are 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.
(4) Amounts for 1992 are higher because Tax Increment Bonds of 1983
were called for payment prior to maturity.
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City of Brooklyn Center TABLE 11
SCHEDULE OF WATER REVENUE BOND COVERAGE
Last Ten Fiscal Years
Ratio of
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Exqensesfl� Available Princiqal Interest Total Service
1982 $507,421 $490,149 $997,570 $377,321 $620,249 $40,000 $18,720 $58,720 10.563 :1
1983 443,565 465,987 909,552 397,265 512,287 40,000 17,160 57,160 8.962 :1
1984 482,558 496,357 978,915 459,771 519,144 40,000 15,600 55,600 9.337 :1
W 1985 546,817 512,538 1,059,355 478,958 580,397 45,000 14,040 59,040 9.831 :1
1986 473,279 488,834 962,113 506,466 455,647 45,000 12,399 57,399 7.938 :1
i
1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1 I,
1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1
1989 687,982 425,030 1,113,012 665,629 447,383 45,000 7,180 52,180 8.574 :1
1990 696,147 440,644 1,136,791 604,497 532,294 45,000 5,425 50,425 10.556 :1
1991 $703,422 $390,421 $1,093,843 $697,108 $396,735 $45,000 $3,695 $48,695 8.147 :1
(1) Excludes depreciation and interest on bonds.
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City of Brooklyn Center TABLE 12
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last Ten Fiscal Years
Commercial Residential
Construction (1) Construction (1) Property Value (2)
Bank
Year Value Units Value Commercial Residential Non-Taxable Deposits(�
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 j
1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 N/A I I
1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A
1987 7,220 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 �3,719,768 $219,077,986
1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488
1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156 I
1992 $2,077,865 21 $1,483,710 $344,860,700 $667,318,600 $107,747,100 $199,800,971
(1) Construction values were supplied by the City of Brooklyn Center Planning Department.
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(2) Estimated market values were supplied by the City of Brooklyn Center Assessing Department. I
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(3) Bank deposits were supplied by the banks.
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City of Brooklyn Center TABLE 13
PRINCIPAL TAXPAYERS
December 31, 1992
Percentage
1992 of total
Market Market
Tax�ayers Tvpe of Business Valuation (11 Value
Equitable Reai Estate
Society of America Brookdale Shopping Center $66,438,700 6.56%
Ryan Construction Office Buildings 17,911,500 1.77%
Dayton-Hudson Corp Department Store 14,863,200 1.47%
Commercial Partners Brookdale Square Shopping
Center 13,326,700 1.32%
o
Norman Chazin Apartment Buildings 10,497,900 1.04 /o
Sears Roebeck and Company Department Store 9,419,100 0.93%
Robert H. Bradley Office and Warehouse Building 9,089,700 0.90%
Shingle Creek Plaza II Land, Warehouse and Office
Buildings 8,924,600 0.88%
Carson Pirie Scott Department Store 7,290,300 0.72%
Plaza Real Estate Partners Hotel/Motel 7,040,000 0.70%
Total Market Value $164,801,700 16.28%
TOTAL CITY MARKET VA�UE $1,012,179,300
(1) Market values were supplied by the City of Brooklyn Center Assessing Department.
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City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE
Effective January 1, 1993 (Continued next page)
Policy Period
Tvqe of Covera4e and Details From To Liabilitv Limits
l. Statutorv Liabilitv to Em�lovees
a. Workers' Compensation 01-01-93 01-01-94 Statutory
(participant in the League
of Minnesota Cities Insurance
Trust Self-Insured Workers'
Compensation Program)
II. Liabilitv to the Public
a. Comprehensive general liability include the following additional coverages:
(a) All employees as additional insureds
(b) Personal injury coverage to include false arrest, libel, slander, wrongful
entry or eviction or invasion of right of privacy.
(c) Broad contractual liability
(d) Products liability
(e) Public Officials' liability
(1) Bodily injury 01-01-93 01-01-94 $600,000 combined single limit
(2) Property damage 01-01-93 01-01-94 $600,000 combined single limit
(3) Personal injury 01-Q1-93 01-01-94 $600,000 combined single limit
b. Automobile liability,
comprehensive 01-01-93 01-01-94
(1) Bodily injury $600,000 occurrence
(2) Property damage $600,000 occurrence
(3) Uninsured motorist $600,000 occurrence
c. Liquor stores' dram shop 01-01-93 01-01-94 $1,000,000 each common
cause
d. Golf Course and Central Park 04-01-93 10-31-94 $1,000,000 each common
liquor liability cause
e. Personal accident, Council 03-01-93 03-01-94 $100,000 accidental death
Commissions $400/week short term disability
f. Personal accident, Volunteers 05-01-93 05-01-94 $100,000 accidental death
$400/week short term disability
$1,000 Medical
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City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 1993
Buildings
and
Policy Period Structures Content:
(Replacement (Replacement
Tv�e of Coveraqe and Details From To Cost� Costl
I II. Insurance on Citv Pro�ertv 01-01-93 01-01-94
a. Public and institutional
property, all risk, blanket
$25,853,500; $1,d00 deductible
replacement value on buildings.
(1) Civic Center $5,770,400 $547,000
(2) East Fire Station $566,200 $60,000
(3) Municipal Service Garage $1,293,100 $236,000
(4) Elevated Water Towers 3 locations $3,347,600 $0
(5) Park Shelter Buildings 17 locations $1,403,000 $55,000
(6) Pump Houses 10 locations $867,300 $110,000
(7) Lift Stations 10 locations $1,008,100 $71,000
i (8) Meter Station $15,500 $0
9 Stora e Buitdin $386, i 00 $0
O 9 9
(10) Outdoor lighting systems 7 locations $316,000 $0
(11) Liquor Store and Fire Station $545,200 $211,000
(12) Humboldt Liquor Store $223,400 $171,000
(13) Leased Liquor Store $46,400 $215,000
(14) Movable Properties $0 $186,000
(15) Pedestrian Bridge 2 locations $1,034,000 $0
(16) Picnic Shelter $52,500 $0
(17) Earle Brown Heritage Center $6,809,000 $1,121,000
(18) Centerbrook Golf Course Club House $288,400 $22,000
(19) Centerbrook Golf Course Garage $20,000 $2,000
(20) Lions Park Concession Stand $33,000 $3,000
Liabilitv Limits
b. Boiler and machinery 01-01-93 01-01-94 $3,000,000 per accident
c. Automotive physical damage 01-01-93 01-01-94
(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
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�I
Cit of Brookl n Center TABLE 15
Y Y
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
School Enrollments (3)
Mpls-St.Paul No 286
Fiscal Unemployment C.P.I. No 11 No 279 No 281 Earle
Year Population Rate (1� Anoka Osseo Robbinsdale Brown
1983 30,830 6.4% N/ A 1,300 2,184 622 1,311
1984 30,820 4.8% N/ A 1,103 2,039 700 1,310
1985 30 630 4.5% N/ A 1 032 2 003 567 1 326
1986 30,267 3.9% 1.3% 1,011 y,838 555 1,361
1987 29,759 4.1 3.0% 989 1,674 570 1,376
1988 29,420 3.5% 5.0% 989 1,674 563 1,456
I I' 1989 28,578 3.5% 4.1 671 1,674 563 1,652
1990 28,810 3.2% 4.1 642 1,616 540 1,747
1991 28,887 4.6% 2.3% 807 1,680 521 1,327
1992 28,598(4) 4.4% 1.4% 671 1,178 526 1,709
(1) Minnesota Department of Jobs and Training, Research and Statistics Dept.
Twin Cities metro area average for year.
(2) U.S. Department of Labor, Bureau of Labor Statistics.
All urban consumers, (CPI-U) 1982-84, second half change from prior year.
(3) School enrollment data was supplied by the schools.
(4) Source: City of Brooklyn Center Planning Department Estimate
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TABLE 16
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
December 31, 1992
Date of Incorporation February 14, 1911
Date of Adoption of City Charter November 8, 1966
Date City Charter Effective December 8, 1966
Form of Government Council-Manager
Fiscal Year Begins January 1
Area of City 8 1/2 square miles
Miles of Streets
City 105.69
County 6.49
State 1 p, 79
Miles of Storm Sewers 41.13
Number of Street Lights: Owned by N.S.P 1003
Owned by City 73
Building Permits: Number Estimated
Issued Cost
1992 573 $14,286,465
1991 466 8,800,980
1990 504 8,035,605
1989 526 19,217,696
1988 554 10,846,987
1987 573 10,421,724
1986 604 28,594,810
1985 521 32,328,938
1984 545 15,606,354
1983 660 16,096,550
City Employees as of December 31, 1992
Regular full-time 144
Temporary or part-time 175
Total S1 g
Fire Protection:
Number of Stations 2
Number of Full-time Employees 1
I Number of Volunteer Firemen 35
Police Protection:
Number of Stations 1
Number of Full-time Employees 54
Number of Part-time Employees 16
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City of Brookl n Center TABI.E 16
Y
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 1992 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 7
Hockey rinks 5
Softball diamonds 26
Baseball diamonds 6
Tennis courts 18
Basketball courts 15
I Municipal Water Plant:
Number of connections 8,910
Average daily consumption in gallons 3,625,284
Peak daily consumption in gallons 10,168,000
Plant capacity gallons er da 17,652,000
P Y
Miles of water mains 114.052
Number of fire hydrants 835
Number of wells 9
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.73
Municipal Sewer Plant;
Number of connections 8,798
Miles of sanitary sewer 104.98
Daily disposal capacity in gallons 10,938,240
Number of lift stations 10
Residential rate per quarter $40.00
Municipal Liquor Stores (Off-sale):
Number of owned stores 2
Number of leased stores 1
1992 sales $2,664,667
Elections:
Last General Election November 3, 1992
Registered voters 20,640
Votes cast 15,642
Percentage of registered voters voting 76%
Last Municipal Election 1992
Registered voters 20,640
Votes cast 15,642
Percentage of registered voters voting 76%
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