HomeMy WebLinkAboutCAFR-1994 COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1994
Prepared by
THE DEPARTMENT OF FINANCE
Charles R. Hansen, Director
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(Member of Government Finance Officers
Association of the United States and Canada)
Citv of Brooklvn Center
COMPREHENSIVE A�INUAL FINANCIAL REPORT
Year Ended December 31, 1994
TABLE OF CONTENTS
Exhibit Page
Number Number
Title Page
I. INTRODUCTORY 5ECTION
Table of Contents i- iv
City Officials
Organization Chart 2
Finance Director's Letter 3 11
Certificate of Achievement 12
II. FINANCIAL SECTION
Independent Auditors' Report 13
A. General Purpose Financial Statements
(Combined Statements Overview):
Combined Balance Sheet Al1 Fund Types and
Account Groups 1 15 16
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances All Governmental
Fund Types 2 1�
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances Budget And Actual
General and Special Revenue Funds 3 18
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings Proprietary
Fund Types 4 19
Combined Statement of Cash Flows
Proprietary Fund Types 5 20
Notes to Financial Statements 21 48
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1994
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
B. Combining, Individual Fund and Account Group
Financial Statements and Schedules:
General Fund:
Balance Sheet A-1 50
Statement of Revenues, Expenditures and
Changes in Fund Balance Budget and Actual A-2 51
Schedule of Revenue Other Financing
Sources Budget and Actual S-1 52 53
Schedule of Expenditures Budget and Actual S-2 54 58
Special Revenue Funds:
Combining Balance Sheet B-1 60
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances Budget and Actual B-2 61 62
Debt Service Funds:
Combining Balance Sheet C-1 64
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C-2 65
Capital Projects Funds:
Combining Balance Sheet D-1 67
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D-2 68
Project-Length Schedule of Construction
Projects Capital Improvements Fund S-3 69
Project-Length Schedule of Construction Projects
Municipal State Aid Construction Fund S-4 70
Project-Length Schedule of Construction Projects
Special Assessment Construction Fund S-5 71
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1994
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Enterprise Funds:
Combining Balance Sheet E-1 73 74
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings E-2 75 76
Combining Statement of Cash Flows E-3 77 78
Statement of Revenues, Expenses, and Changes in
Retained Earnings Municipal Liquor Fund E-4 79
Statement of Revenues, Expenses, and Changes
in Retained Earnings Golf Course Fund E-5 80.
Statement of Revenues, Expenses, and Changes
in Retained Earnings Earle Brown
Heritage Center Fund E-6 81
Statement of Revenues, Expenses, and Changes in
Retained Earnings Recycling Refuse Fund E-7 82
Statement of Revenues, Expenses, and Changes
in Retained Earnings Water Utility Fund E-8 83
Statement of Revenues, Expenses, and Changes
in Retained Earnings Sanitary Sewer Fund E-9 84
Statement of Revenues, Expenses, and Changes
in Retained Earnings Storm Drainage Fund E-10 85
Internal Service Funds:
Combining Balance Sheet F-1 87
Comparative Statement of Revenues, Expenses and
Changes in Retained Earnings F-2 88
Combining Statement of Cash Flows F-3 89
Agency Funds:
Statement of Changes in Assets and Liabilities
Employee Deferred Compensation Fund G 91
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
by Sources S-6 93
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Citv of Brooklvn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1994
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Schedule of General Fixed Assets
By Function and Activity S-7 94
Schedule of Changes in General F�xed Assets
By Function and Activity S-8 95
General Long-Term Debt Account Group:
Comparative Statement of General Long-Term Debt H 97
Summary of Debt Service Requirements
to Maturity I gg
III. STATISTICAL SECTION Table Page
Number� Number
General Governmental Expenditures by Function 1 100
General Governmental Revenues and Other
Financing Sources by Source 2 101
Tax Levies and Tax Collections 3 102
Assessed Value and Estimated Market Value of All
Taxable Property 4 103
Direct and Overlapping Tax Rates and Tax Levies 5 104
Special Assessment Billings and Collections 6 105
Ratio of Net Bonded Debt to Assessed Value and
Net Debt Per Capita 7 106
Computation of Legal Debt Margin 8 107
Computation of Direct and Overlapping Debt 9 108
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures 10 109
Schedule of Revenue Bond Coverage 11 110
Property Value, Constru�tion and Bank Deposits 12 111
Principal Taxpayers 13 112
Schedule of Insurance Coverage 14 113-114
Demographic Statistics 15 115
Miscellaneous Statistical Facts 16 116-117
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Citv of Brooklvn Center
CITY OFFICIALS
For the Year Ended December 31 1994
ELECTED OFFICIALS
ice Term Expires
Term of Off
Mayor Myrna Kragness Four Years 12/31/98
Councilmember Barbara Kalligher Four Years 12/31/96
Councilmember Kristen Mann Four Years 12/31J96
Councilmember Kathleen Carmody Four Years 12/31/98
Councilmember Debra Hilstrom Four Years 12/31/98
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:
Community Development Brad Hoffman
Finance Charles R. Hansen
Fire/Emergency Preparedness Ronald Boman
Police Scott Kline
Public Works Diane Spector
Assessing Mark Parish
Asst. City Manager/Personnel Coordinator Nancy Gohman
City Engineer Scott Brink
Civil Defense Coordinator Ronald Boman
Fire Marshall Ronald Boman
Health Officer Duane Orn, M.D.
Liquor Stores Gerald Olson
Public Works Superintendent Dave Peterson
Recreation Arnold Mavis
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City of Brooklyn Center Organization
1994
ELECTORATE
City Council Advisory
Commissions
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Administration
Purchasing
Human Resources
City Attorney City Manager Elections
N I Licenses
City Cierk i�
PUBUC SERVICES FIRE DEPARTMENT POUCE DEPARTMENT FINANCIAL SERVICES COMMUNITY I I I
-Patrol DEVELOPMENT
-Fire Prevention -Accounting i
-Engineering -Investigation i
-Fire Supression -Audit -Assessing
-Street Mntce -Crime Prevention
-Sanitary Sew�er -Emergency Preparedness -Community Programs -Utility Billing -Inspections
-CeMrel Garage -Support Services -Risk Management -EDA/HRA
-GoJt B�d9$ -Dispatch -Management Information Services -Zoning
-Storm Sewer -Liquor Stores -EBHC
-Water DePt -Planning
-Park Mntce
-Recreation Programs i
-Community Center I
-Gdf Course
a� r +�r rr �r a�r as +r +�w
City o f Brooklyn Center
A great place to start. A great place to stay.
June 12, 1995
Honorable Mayor and City Council Members
City of Brooklyn Center
Dear Mayor Kragness and City Council Members:
Submitted herein is the Comprhensive Annual Financial Report of the
City of Brooklyn Center, Minnesota for the fiscal year ended
December 31, 1994. This report has been prepared following the
guidelines recommended by the Government Finance Officers
Association of the United States and Canada. The Government
I 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 eleven years have received this award. It is our
belief that the accompanying report meets program standards, and it
will be submitted to the Government Finance Officers Association
for review.
Responsibility for both the accuracy of the data, and the
completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and
belief, the enclosed data are accurate in all material respects and
are reported in a manner designed to present fairly the financial
position, results of operations, and cash flows of the various
funds and account groups of the city. All disclosures necessary to
enable the reader to gain an understanding of the government's
financial activities have been included.
The comprehensive annual financial report is presented in three
sections: introductory, financial, and statistical. Included in
the introductory section is this transmittal letter, the
government's organizational chart and a list of principal
officials. The financial section includes the general purpose
financial statements and the combining and individual fund and
account group financial statements and schedules, as well as the
independent auditors' report on the financial statements and
schedules. The statistical section includes selected financial and
demographic information, generally presented on a multi year basis.
The Cit is re uired to under o an annual sin le audit in
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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,
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430-2199 City Hall TDD Number (612) 569-3300
Recreation and Community Center Phone TDD Number (612) 569-3400 FAX (612) 569-3494
An Affirmatiue Action/Equal Opportunities Employer
findings and questioned costs, and independent auditors' reports on
the internal control structure and compliance with appTicable laws
and regulations, is issued as a separate report.
REPORTING ENTITY
The financial reporting entity ineludes all funds and account
groups of the primary government (i.e., the City of Brooklyn Center
as legally defined), as well as all of its component units.
Component un�ts are legally separate entities for which the primary
government is financ:ially accountable.
Blended component units, although-legally separate entities, are,
in substance, part of the primary govexnment's operations and are
included as part of the primary government. Accordingly, Economic
Development Authority and Housing and Redevelopment Authority are
reported as capital project funds of the City of Brooklyn Center.
The City provides a full range of municipal services including
public safety (police and fire), streets, sanitation, sociaT
services, culture-recreation, public improvements, planning and
zoning, and general administrative services. The City alsa
operates three off-sale liquor stores, a public water and sewer
utility, a golf course, and a convention center known as the Earle
Brown Heritage Center.
ECONOMIC CONDITI01�1 AND OUTLOOK
"The Twin Cities ranks among the largest metrop.olitan economies in
the nation, having achieved status as a major national regional
center," according to a Metropolitan Council report. Brooklyn
Center is a first ring suburb located in the northwestern corner of
Minneapolis-St. Paul metropolitan area. Its commercial district is
anchored by the Brookdale Shopping Center whYCh 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 and industrial property comprises 58� of the City's
taxable net tax capacity. There are five major shopping centers
located in the City in addition to a large number of retail
establishments including K-Mart, Kohl's Department Store, Toys R
Us, Jerry'"s New Market and Builders Square. The largest commercial
property in the City is Brookdale Mall,`an 1,000,000 square-foot
regional shopping;center anchored by Daytons, Sears, Penny's and
Mervyns. Brookdale Square, a 125,000 square-foot strip center is
occupied by Circuit City and the Drug Emporium. The remaining
three major shopping centers include Shing�.e Creek Center, a",'
157,000 square-foot three building center anchored by Target;
Westbrook Mall, an 88,000 square-foot center anchored by Dayton's
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Home Store; and Brookview Plaza, a 70,000 square-foot center
anchored by Best Buy and Office Max.
MAJOR EVENTS nF 1994
The City retained BRW, Inc. to study and provide a definitive plan
for shaping the image and the utilization of the Brooklyn Boulevard
Corridor over the next twenty years. Over the years, Brooklyn
Boulevard has been undergoing a transformation from a low-density
residential street to a major commercial arterial. Along with this
change have come pressures to accommodate more traffic and
intensify the land uses along the Corridor. The intent of the
study was to create a practical plan which will provide realistic
and comprehensive guidelines for the future development of the
Corridor.
In conjunction with the Brooklyn Boulevard Study, the City
coordinated a project with Metropolitan Council Transit Operations
for a park and ride facility on the corner of I-694 and_Brooklyn
Boulevard. The City also completed the reconstruction of 69th
Avenue and Brooklyn Boulevard and purchased properties along
Brooklyn Boulevard to assist in future redevelopment.
The City public works garage is undergoing extensive remodeling and
is expected to be completed in the spring of 1995. The garage
houses the City's street, park, vehicle maintenance and public
utilities operations. The project is estimated to cost $1.6
million. Funding for the project is from the Capital Improvements,
Water and Sewer funds.
Earle's, a unique special occasion restaurant opened in April 1994
at the Earle Brown Heritage Center. The restaurant brings gourmet
country cuisine to the North Metro Area.
The City is in the process of completing two comprehensive street
and utility improvements for the City. These improvements were
funded by general obligation bonds sold during 1994 and include the
Special Assessments Construction Fund and Storm Drainage Fund.
FINANCIAL INFORMATlON
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: (i) 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.
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Sinale Audit. As a recipient of federal, state and county
financial assistance, the City also is responsible for ensuring
that an adequate internal control structure is in place to ensure
compliance with applicable laws and regulations related to those
programs. This internal control structure is subject to periodic
evaluation by management and the independent auditors. As a part of
the City's single audit, which was 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, 1994 provided no
instances of material weaknesses in the internal control structure
or significant violations or material instances of noncompliance
with 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 a ro riated bud et. t- en a
pp p g Pro'ec 1 gth fin ncial lans are
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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 1995, and actual revenues for
the fiscal year ended December 31, 1994, compared to 1993.
General Fund Revenues Other Financina Sources 1994
Increase
1995 1994 1993 -Decrease
BUDGET ACTUAL ACTUAL From 1993
Taxes $6,376,165 $5,703,773 $5,006,710 697,063
License permits 296,400 317,620 300,480 17,140
Intergovernmental
revenue 3,479,626 3,353,247 3,167,214 186,033
Charges for
services 893,732 825,959 838,883 =12,924
Court fines 112,000 113,573 140,104 -26,531
Misc. revenues 200,000 241,570 279,211 37,641
Other financing
sources 100,000 190,000 295,000 -105,000
TOTAL $11,457,923 $10,745,742 $10,027,602 718,140
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Revenues and other financing sources for the General Fund totaled
$10,745,742 in 1994, an increase of $718,140 from the previous
year. From the table above, it is apparent that the major sources
of revenue available for funding of general governmental functions
are taxes and intergovernmental revenue, which when combined,
provide 84� of the total revenues. The principal sources of
intergovernmental aid to the City are homestead and agricultural
credit aid of 1 286 780 and oc v
1 al o ernment aid of 1 757 227.
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Other financing sources decreased $105,000 when compared to the
prior year. In the 1994 budget, the City eliminated the use of
certificates of indebtedness resulting in significant interest
savings.
The following schedule presents a summary of general fund budgeted
expenditures for 1995, and actual expenditures for the fiscal year
ended December 31, 1994, compared to 1993.
General Fund Expenditures 1994
Increase
1995 1994 1993 -Decrease
BUDGET ACTUAL ACTUAL From 1993
General Govt $1,882,240 $1,692,268 $1,560,674 131,594
Public Safety 4,882,085 4,409,490 3,870,563 538,927
Public Works 1,560,386 1,230,565 1,756,187 -525,622
Community Serv 40,860 41,495 41,325 170
Parks Recr 2,333,701 2,055,479 1,999,270 56,209
Economic
Development 187,625 199,982 178,703 21,279
Non-departmental 571,026 312,779 300,803 11,976
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TOTAL $11,457,923 $9,942,058 $9,707,525 234,533
Ex enditures for the General Fund totaled 9 942 058 in 1994 an
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overall increase of less than 2.5% when compared to 1993. Public
Safety expenditures increased primarily because of additional
personnel costs and the new central garage fees. Public Works
expenditures decreased primarily because of personnel costs being
charged to capital project funds for improvement projects and the
transfer of the vehicle maintenance operation to the Central Garage
Internal Service Fund.
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GENERAL FUND BALANCE
The fund balance, after an equity transfer of $200,000 to the
Central Garage Internal Service Fund, increased by $603,684 or
13.1� in 1994. The ending fund balance of $5,214,413 is the
equivalent of five months of expenditures for the 1995 budget.
Property taxes and inter-governmental revenue represent 86� of the
budgeted general fund revenue for 1995. The State of Minnesota has
structured city finances so most of these revenues are received in
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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
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 January 1994, a new 5 year lease was
signed for the third store, which secures favorable lease rates.
Centerbrook Golf Course began operating in 1988 and recorded
operating profits from 1990 through 1993. A combination of a major
maintenance project and the transfer of equipment to the Central
Garage caused an operating loss in 1994. Profitability is expected
to return in 1995. Green fees have been increasing each year to
keep pace with inflation.
The Earle Brown Heritage Center is a pioneer farmstead which has
been historically preserved and restored as a modern multipurpose
facility. Its convention center can host conferences, trade shows,
and concerts seating 1,000 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 City's
policy for this enterprise is to set fees and user charges at a
level which allows the operations to break-even excluding
depreciation on contributed assets.
The dwindling supply of landfill space for the disposal of garbage
has become a major concern in Minnesota. State and county mandated
goals for the diversion of garbage to recycling programs took
effect in 1989. In response, the City opened a Recycling and
Refuse Fund as an enterprise fund. So far it is operating a
recycling program. Expansion into garbage collection will take
place when there is clear advantage to be achieved by it. Goals
for the recycling program are being met.
The Water and Sanitary Sewer utilities are largely developed and
already reach all parts of the City. Rates for both water and
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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. Planned rate increases should be
sufficient to keep them both profitable.
During the 1980s, the State of Minnesota passed legislation that
requires cities to take greater responsibility for controlling
storm water runoff. In response to this, the City created a Storm
Drainage Utility Fund. Its fee structure is based upon the amount
of water discharged into the storm sewer system.
INTERNAL SERVICE FUNDS
The Central Garage Fund was established to own and maintain all
operating equipment of the City. At present, the fund maintains
some 160 pieces of rolling and non-rolling stock equipment with a
book value of $1,953,771. Equipment maintenance, repair, fuel, and
replacement costs are provided from rental rates which the Central
Garage Fund charges City operating departments for the use of the
equipment.
AGENCY FUND
The Deferred Compensation Agency Fund accounts for the I.C.M.A.
Retirement Corporation plan with a market share value totaling
$2,635,726 for City employee plan members at year end.
DEBT ADMINISTRATION
At December 31, 1994, the City had a number of debt issues
outstanding. These issues include $2,605,000 of general obligation
state aid street bonds, $1,010,000 of special�assessment debt with
government commitment, $1,830,000 of general obligation revenue
bonds and $14,085,000 of general obligation tax increment bonds.
The City maintained its A-1 rating from Moody's Investors Service.
The City issued $1,830,000 of revenue bonds and $835,000 of special
assessment bonds in 1994 to provide construction proceeds for
various improvement�projects in the City.
CASH MANAGEMENT
The Finance Department keeps abreast of current trends and
procedures for cash management and forecasting so as to ensure
efficient and profitable use of the City's cash resources. Cash is
invested only in investments authorized by Minnesota Statutes
Chapter 475. The yield on investments ranged from a high of 8.24
percent to a low of 4.12 percent. Interest earned during 1994
amounted to $1,568,375 compared to $1,912,587 during 1993. The
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City adopted a written investment policy in 1990 The policy's
objectives are to minimize credit and market risk, provide needed
liquidity, and maintain a competitive yield on the portfolio.
All deposits were either insured by federal depository insurance or
collateralized. Investment securities are held in a custody
arrangement with a bank trust department. All investments are
listed in the lowest credit risk category, Category 1. Cash
balances for all funds of the City are maintained on a combined
basis and invested, to the extent possible, in short-term
securities. Earnings from securities are allocated to the various
funds in proportion to their relative cash book balances. In the
recent past, the City hasn't needed to use any short-term debt and
doesn't anticipate such a need in the future.
The City hasn't purchased any collateralized mortgage obligations,
derivatives, or interest only strip investments. Our practice is
to hold investments to maturity. The only reason to sell prior to
maturity would be an unforeseen cash flow need. In the past two
years, there have been no occasions where investments �aere sold
prior to maturity. Of the City's portfolio as of December 31,
1994, 45� matures within 1 year, another 22� in the second year,
17� in the third year, 15� in the fourth year, and the last 1� in
the fifth year.
RISK MANAGEMENT
The City insures all significant risk. A schedule of such
insurance is included in the Statistical Section.
INDEPENDENT AUDIT
The City Charter and State Statutes require the Council to provide
for an audit of the financial transactions of'the City. Deloitte
Touche LLP has been retained for that purpose and their
unqualified opinion has been included in this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States
and Canada (GFOA) awarded a Certificate of Achievement for
Excellence im Financial Reporting to the City of Brooklyn Center
for its comprehensive annual financial report for the fiscal year
ended December 31, 1993.
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.
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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.
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, with special recognition to Theresa
Eichten, Accountant. 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,
C��,«�,�� R N
Charles R. Hansen
Director of Finance
ti".'1�-r��
Timothy R. Johnson
Assistant Director of Finance
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Certificate of
Achievement
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or Exce��ence
in Financia=
�e�ortln
g
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Presented to
Cit of Broo n Center
y
Minnesota
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For its Comprehensive Annual
Financial F�eport
for the Fiscal Year Ended
December 31, 1993
A Certificate of Achievement far 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 camprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
P N�E ORF
°N� �9 1 v 1
W yy
t CANAOA President
6 CORPORATION
�IE�4.1[.
O� r
CHICAGa�
Executive Director
De oitte
Touche «P
400 One Financial Plaza Telephone: (612) 397-4000
120 South Sixth Street Facsimile: (612) 397-4450
Minneapolis, Minnesota 55402-1844
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members
of the City Council of the
1 City of Brooklyn Center, Minnesota
We have audited the accompanying general purpose financial statements of the City of Brooklyn Center,
Minnesota (the City) as of December 31, 1994 and for the year then ended, listed in Section IIA of the
foregoing table of contents. These general purpose financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these general purpose financial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditing standazds and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, such genetal purpose financial statements present fairly, in all material respects, the
financial position of the City of Brooklyn Center, Minnesota at December 31, 1994 and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The accompanying combining and individual fund and account group
financial statements and schedules listed in the foregoing table of contents, which are also the
responsibility of the City's management, are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the City. Such financial statements and
schedules have been subjected to the auditing procedures applied in our audit of the general purpose
financial statements and, in our opinion, are fairly stated in all material respects when considered in
relation to the general purpose financial statements taken as a whole.
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April 17, 1995
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DeloitteTouche
Tohmatsu
International
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpos� 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.
I
I' 14
City of Brooklyn CeMer EXHIBIT 1
All Fund Types and Acxount Groups
COMBINED BALANCE SHEET (Continued next page)
December 31, 1994
Fiduciary Totals
Govemmental Fund Types Proprietary Fund Types Fund Types Axount Groups (Memorandum Ony)
Generel Generel
Special Debt Capital Irrternal Fixed Long-Term December3l,
General Revenue Service Projects Enterprise Service Agency Assets Debt 1994 1993
ASSETS AND OTHER DEBITS
Cash, cash eguivalents and
investments (Notes 2 8 3) $6,Oy1,449 $53,189 $1,505,385 $9,845,647 $4,922,337 $3,840,501 $26,238,508 $24,311,553
Receivabies:
Accounts 42,150 280,572 69,192 970,738 3,027 1,365,679 1,082,393
DeUnquertttaxes(Note1K) 237,996 9,648 247,644 191,149
Special assessments:
Deferced 21,010 445,415 1,018,095 61,886 1,546,406 1,538,827
Delinquent 1,145 7,922 46,181 3,590 58,838 43,068
Due from �her (unds (Note 11) 103,066 103,066 147,584
Duefromothergovemmerrts 21,841 65,816 1,968,764 940,091 2,996,512 1,969,190
Irnentories and supplies (Note 1G) 328,575 17,874 346,449 319,790
Prepaid expenses 143,157 143,157 153,342
Cn
IMerfund advances (Note 11) 105,074 1,902,053 2,007,127 1,958,087
Restricted investments (Note 1H) 4,182,719 1,000,000 4,000,000 9,182,799 9,184,451
Restricted receivables 473,344 473,344
InvestmeMs for deterced compensation
plan at market (Note 13) $2,635,726 2,635,726 2,532,735
Property, plard and equipment (Note 4) 36,170,962 3,936,720 $12,985,809 53,093,491 49,921,592
Less accumulated depreciation (8,203,431) (1,982,949) (10,186,380) (9,398,500)
Amour�t available in Debt Service Funds $5,688,104 5,688,104 5,846,719
Amour�t to be pravided for General Long-
Term Debt 12,011,896 12,011,896 11,798,281
Total Assets ar� Other Debits $6,478,510 $421,732 $6,141,441 $15,962,646 $39,811,249 $5,815,173 $2,635,726 $12,985,809 $17,700,000 $107,952,286 $101,600,261
(See notes to financial statemeMs)
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�■r At �r a� �r rr �s r
City of Brooklyn Center Exhibit 1
All Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued from prior page}
December 31, 1994
Fiducia
ry
Totals
Governmental Fund Types Proprietary Fund Types Fund Types Account Groups Memorandum Only
Genera� General
Special Debt Capitai Internal Fixed �ong-Term December3l,
LIABILITlES, EQUITY AND OTHER CREDITS General Revenue Service Projects Enterprise Service Agency Assets Debt 1994 1993
Liabilities
Accounts payable $266,152 $19,414 $72,258 $383,627 $15,751 $757,202 $746,724
Contracts payable 127,485 127,485
Duetoothergovernments 44,132 97,973 142,105 81,913
Due to other funds (Note 11) 65,816 37,250 103,066 147,584
Accrued salaries and wages 109,902 4,585 32,321 209,441 356,249 387,445
Accrued vacation sick pay (Note 11) 526,755 18,640 48,399 21,099 614,893 598,591
Accrued interest payable 37,760 37,760
Temporary improvement notes (Note 3) 1,624,344 1,107,541 389,205 3,121,090 2,713,882
Deferred revenue 317,156 22,155 $453,337 3,042,688 3,835,336 3,442,432
Intertund loans (Note 11) 698,143 1,308,984 2,007,127 1,958,087
Liabilities payable from restricted assets 54,710 54,710 I
State aid street bonds payable (Note 5) $2,605,000 2,605,000 2,750,000
Special assessment debt with government
commRment (Note 5) 1,010,000 1,010,000 275,000
Tax increment bonds payable (Note 5) 14,085,000 94,085,000 14,620,000
Revenue bonds payable (Note 5) 1,830,000 1,830,000
Deferred compensation tunds held for
paRicipants (Note 13) $2,635,726 2,635,726 2,532,735
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i-+ Total Liabilities 1,264,097 2,527,845 453,337 4,410,447 4,085,006 246,291 2,635,726 17,700,000 33,322,749 30,254,393
i Eauitv and Other Credits
Contributed capital (Note 6) 21,187,660 4,114,355 25,302,015 24,718,109
Investment in general fixed assets $12,965,609 12,985,809 12,260,340
Retained earnings:
Reserved:
Debt Service 90,625 90,625
Special assessments 65,476 65,476 90,148
Plant expansion (Note 1H) 4,000,000 4,000,000 4,000,000
Unreserved 10,382,482 1,454,527 11,837,Q09 10,432,117
Fund Balances (Deficits):
Reserved:
Debt service 5,688,104 5,688,104 5,846,719
Unexpended appropria4ions 223,951 223,951 679,551
Dedicated housing accouM (Note 1H) 1,000,000 1,000,000 1,000,000
interfund �oans 105,074 1,902,053 2,007,127 1,958,087
Unreserved:
Designated:
Working capftal 5,052,687 5,052,687 4,466,375
Unexpended appropriations 56,652 56,652 39,280
Undesignated (2,106,113) 8,426,195 6,320,082 5,855,142
TotalEquityandOtherCredits 5,214,413 (2,106,113) 5,688,104 11,552,199 35,726,243 5,568,882 12,985,809 74,629,537 71,345,868
TotalLiabilities,Equity&OtherCredits $6,478,510 5421,732 $6,141,441 $15,962,646 $39,811,249 $5,815,173 52,635,726 $12,985,809 $17,700,000 $107,952,286 5101,600,261
(See notes to financial statements)
City of Brooldyn Center EXHIBIT 2
All Governmental Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Y�r Ended December 31, 1994
Totals
Special Debt Capital Memorandum Only
Revenues General Revenue Service Projects 7994 1993
Taxes and special assessments $5,703,773 $1,529,651 $328,696 �491,057 $8,053,177 $7,571,724
Licenses and permits 317,620 3�7,�p 3pp�qgp
Intergovemmental 3,353,247 184,836 812,098 4,350,181 3,6i9,863
Charges for services 825,959 18,413 844,372 850,366
Court fines 113,573 113,573 140,104
Investmenteamings 218,671 2,233 261,876 694,490 1,177,270 1,330,768
Miscellaneous 22,899 27,831 50,730 728,667
Total Revenues 10,555,742 1,735,133 590,572 2,025,476 14,906,923 14,601,972
Exoenditures
Current:
General government 1,692,268 1,692,268 1,560,674
Public safety 4,409,490 4,409,490 3,870,563
Publicworks 1,230,565 �,23p,�,5 �,7��987
Community services 41,495 41,495 41,325
Parks and recreation 2,055,479 19,159 2,074,638 2,071,668
Economicdevelopment 199,982 72,270 729,739 1,001,991 675,150
Non-departmental 312,779 312,779 300,803
Capital outlay 1,732,862 1,732,862 2,629,938
Debt service:
Principal retirement 7gp,ppp 780 ppp ��p
Interest and fiscal charges 81,656 1,082,191 109,132 1,272,979 1,399,704
Total Expenditures 9,942,058 173,085 1,862,191 2,571,733 14,549,067 15,967,012
Excess or Deficiency(-) of Revenues Over Expendit 613,684 1,562,048 (1,271,619) (546,25� 357,856 (1,365,040)
Other Financina Sources or Uses(-1
Proceeds from sale of bonds 3,533 824,980 828,513
Operating transfers in 190,000 1,559,471 1,014,519 2,763,990 2,316,801
Operatingtransfersout (1,559,678) (1,229,154) (2,788,832) (2,301,611)
Sale of certificates of indebtedness Zp ppp
Total Other Financing Sources or Uses(-) 190,000 (1,559,678) 1,563,004 610,345 803,671 135,190
Excess or Deficiency(-) of Revenues and Other
Sources Over Expenditures and Other Uses 803,684 2,370 291,385 64,088 1,161,527 (1,229,850)
Fund Balances (Deficits) January 1 4,610,729 (2,108,483) 5,846,719 11,496,189 19,845,154 22,710,441
EquityTrensfersOut (200,000) (450,000) (8,078) (658,078) (1,635,43�
Fund Balances (Deficits) December 31 $5,214,413 (a2,106,113) $5,688,104 $11,552,199 $20,348,603 $19,845,154
(See notes to financial statements)
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I City of Brooldyn 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, 1994
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Propertytaxes $5,884,414 35,703,773 ($180,641) �1,365,000 51,529,651 $164,651
Licenses and permits 289300 317,62Q 28,320
Intergovemmental 3,320,818 3,353,247 32,429 235,627 184,836 (50,791j
Charge for services 943,133 825,�9 (117,174) 15,000 18,413 3,413
Court fines 144,000 113,573 (30,42�
Investment eamings 170,000 218,671 48,671 1,500 2,233 733
Miscellaneous 14,500 22,899 8,399
Total Revenues 10,766,165 10,555,742 (210,423) 1,617,127 1,735,133 118,006
Exoenditures
Generalgovemment 1,808,919 1,692,268 (tf6,651)
1 Public safety 4,675,502 4,409,490 (266,012)
Public works 1,562,401 1.230,565 (331,836)
Community services 41,572 41,495 (77)
Parks and recreation 2,205,448 2,055,479 (149,969) 28,000 19,159 (8,841)
Economicdevelopment 206,000 199,982 (6,018) 1,100 72,270 71,170
Non-departmental 456,323 312,779 (143,544)
Interest and fiscal charges 104,000 81,656 (22,344)
Total Expenditures 10,956,165 9,942,058 (1,014,10� 133,100 173,085 39,985
Excess or Deficiency(-) of Revenues
Over Expenditures (190,000) 613,684 803,684 1,484,027 1,562,048 78,021
Other Financina Sources or Uses(-1
Operating transfers in 190,000 190,000
Operating transfers out (1,638,806) (1,559,678) 79,128
Total Other Financing Sources or Uses(-) 190,000 190,000 0 (1,638,806) (1,559,678) 79,128
Excess or Deficiency(-) of Revenues and Other
Sources Over Expenditures and Other Uses 0 803,684 803,684 (154,779) 2,370 157,149
Fund Balances (Deficits) January 1 4,610,729 4,610,729 (2,108,483) (2,108,483)
Equ'dy Transfer Out (200,000) (200,000)
Fund Balances (Deficits) December 31 $4,410,729 a5,214,413 E803,684 ($2,263,262) ($2,106.113) 3157,149
(See notes to financial statements)
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City of Brooklyn Center EXHIBIT 4
Proprietary Fund Types
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1994
Intemal Totals
Enterprise Service (Memorandum Only)
Oneratina Revenues Funds Funds 1994 1993
Sales and user fees $9,248,796 $1,030,412 $10,279,208 $8,417,244
Cost of sales 2,413,423 2,413,423 2,244,689
Net Operating Revenues 6,835,373 1,030,412 7,865,785 6,172,555
OperatinC�„Ex�enses
Personal services 2,246,599 277,284 2,523,883 2,038,654
Supplies 281,683 180,356 462,039 234,704
Other services 2,414,671 54,748 2,469,419 2,223,486
Insurance 97,067 26,037 123,104 71,671
Utilities 343,677 343,677 307,402
Rent 69,858 69,858 69,772
Depreciation 721,297 318,413 1,039,710 795,527
Total Operating Expenses 6,174,852 856,838 7,031,690 5,741,216
Operating Income Loss 660,521 173,574 834,095 431,339
Nononeratina Revenues or Exnenses f-1
Investment eamings 518,661 1fi1,272 679,933 581,819
Special assessments (for service
hookups and delinquencies) 16,776 16,776 30,407
Other revenue 2,153 499 2,652 2,036
Loss on disposal of fixed assets (11,541) (2,458) (13,999)
Interest and fiscal agent fees (123,465) (123,465) (84,491)
Total Net Nonoperating 402,584 159,313 561,897 529,771
Income Before Operating Transfers 1,063,105 332,887 1,395,992 961,110
Operating Transfers In 124,842 124,842 84,810
Operating Transfers Out(-) (100,000) (100,000) (100,000)
Net Income 1,087,947 332,887 1,420,834 945,920
Depreciation on contributed assets that
reduces contributed capital 338,532 275,258 613,790 343,228
Retained Earnings January 1 13�,675,883 846,382 14,522,265 13,233,117
Equity Transfer from Contributed Capital 55,320 55,320
Equity Transfer tn (Out) (619,099) (619,099)
Retained Earnings December 31 $14,538,583 $1,454,527 $15,993,110 $14,522,265
(See notes to financial statements)
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City of Brooklyn Center EXHIBIT 5
Proprietary Fund Types
COMBINED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1994
Internal Totals
Enterprise Service (Memorandum Only)
Cash flows from operatinq activities: Funds Funds 1994 1993
Operating income (loss) $660,521 $173,574 $834,095 $431,339
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating acNities:
Depreciation 721,297 318,413 1,039,710 795,527
Loss on sale of fixed assets 2,458 2,458
Changes in assets and liabilities:
Accounts receivable and due from other governments (1,179,037) (3,027) (1,182,064) (278,177)
Inventories (8,785) (17,874) (26,659) (35,829)
Prepaid expenses 10,185 10,185 (4,754)
Accounts payable 34,125 15,751 49,876 90,709
Accrued salaries and leave (8,413) 24,664 16,251 31,209
Accrued interest payable 37,760 37,760
Accrued heafth insurance liability (10,668) (10,668) 25,454
Other nonoperating income 18,929 499 19,428 32,443
Net cash provided by (used for) operating activities 286,582 503,790 790,372 1,087,921
Cash flows from nonca�ital financina activities:
Proceeds from borrowings on revolving loan 153,726 153,726 305,479
Principal payments on revolving loan (20,960) (20,960) (19,257)
Interest paid on revolving loan (93,257) (93,257) (84,491)
Operating transfers in 124,842 124,842 84,810
Operating transfers out (100,000) (100,000) (100,000)
Net cash provided by noncapital financing activities 64,351 64,351 186,541
Cash flows from capital and related financina activities:
Proceeds from bond sale 1,830,000 1,830,000
Capital contributions 1,060,989 1,060,989 1,685,287
Equity transfer to Central Garage Fund (402,911) (402,911)
Acquisition and construction of capital assets (2,154,965) (583,913) (2,738,878) (1,250,812)
Interest paid on revenue bonds (30,208) (30,208)
Net cash provided by (used for) capital and related
financing activities (758,084) 477,076 (281,008) 434,475
Cash flows from investinv activities:
Interest on investments 518,661 161,272 679,933 581,819
Net cash provided by investing activities 518,661 161,272 679,933 581,819
Net increase (decrease) in cash and cash equivalents 111,510 1,142,138 1,253,648 2,290,756
Cash and cash equivalents at beginning of year 4,810,827 2,698,363 7,509,190 5,218,434
Cash and cash equivalents at end of year $4,922,337 $3,840,501 $8,762 $7,509,190
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Gain (loss) on disposal of fixed assets ($656)
Gain (loss) resulting from transfer of fixed assets
to the Central Garage Fund (10,885)
Contribution of ficed assets from other funds 216,188
Fixed Assets transferred to other funds 216,188 24,161
(See notes to financial statemenfis)
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Citv of Brooklvn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31. 1994
Note 1: Summarv of Sicrnificant Accountina Policies
The City of Brooklyn Center, Minnesota (City) was formed and
I
operated pursuant to applicable Minnesota laws and statutes.
The overnin bod consists of a five-member Cit Council
g g Y Y
elected at large to serve four-year staggered terms.
A. Reportina Entitv
The City includes all funds, organizations, institutions,
agencies, departments and offices that are not legally
separate from such. Component units are legally separate
organizations for which the elected officials of the City are
financially accountable and are included within the general
purpose financial statements of the City because of the
si nificance of t
heir o erational or financial relationshi s
g P P
with the City.
BLENDED COMPONENT UNITS:
Blended com onent u
p nits, although legally separate entities,
are, in substance, part of the government's operations and so
data from these units are combined with data of the primary
government.
Economic Development Authority (EDA) and Housing and
Redevelopment Authority (HRA) in and for the City of Brooklyn
Center:
The governing boards are the City Council. The Council
reviews and approves EDA and HRA tax levies, and the City
provides major community development financing for EDA and HRA
activities. Debts issued for EDA and HRA activities are City
general obligations. Although the EDA and HRA are legally
separate from the City, they are reported as if they were part
of the City because their sole purpose is carry out certain
redevelopment projects for the City. Complete financial
statements for the EDA and HRA may be obtained at the City
offices located at 6301 Shingle Creek Parkway, Brooklyn
Center, Minnesota 55430.
RELATED ORGANIZATIONS:
The Brooklyn Center Fire Department Relief Association
(Association):
The Association is organized as a nonprof�t organization,
legally separate from the �ity, by its members to provide
21
I Note 1: Summarv of Sianificant Accountina Policies (continued)
A. Renortina Entitv (continued)
pension and other benefits to such members in accordance with
Minnesota Statutes. Its board of directors is appointed by
the membership of the Association and not by the City Council
and the Association issues their own set of financial
statements. All funding is conducted in accordance with
applicable Minnesota Statutes, whereby state aids flow to the
Association, tax levies are determined by the Association, and
are only reviewed by the City and the Association pays
benefits directly to its members. The Association may certify
tax levies to Hennepin County directly if the City does not
carry out this function. Because the Association is fiscally
independent of the City, the financial statements of the
Association have not been included within the City's reporting
entity. (See Note 9 for disclosures relating to the pension
plan operated by the Association.) The City's portion of the
I costs of the Association's pension benefits are included in
the General Fund under public safety.
I JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS:
The City has several agreements with governmental and other
entities which provide reduced costs, better service, and
additional benefits to the participants. These programs,
which the City participates in, are listed below and amounts
recorded within the current year financial statements are
disclosed.
Local Government Information Systems Association (Logis):
This consortium of approximately 20 government entities
provides computerized data processing and support services to
its members. Logis is legally separate•' the City does not
appoint a voting majority of the Board, and; the Consortium is
fiscally independent of the City. The total amount recorded
within the 1994 financial statements of the City was $222,400
for services provided which is allocated to the various funds
based on applications. Complete finacial statements may be
obtained at the LOGIS offices located at 2700 Freeway
Boulevard, Sui�e 300, Brooklyn Center, Minnesota 55430.
Logis Insurance Group:
This group provides cooperative purchasing of health and life
insurance benefits for approximately 45 government entities.
The total amount recorded within the 1994 financial statements
of the City was $455,219 for services provided.
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Note 1: Summarv of Sianificant Accountina Policies (continued)
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.
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.
Capital Projects Funds Capital Projects Funds are used to
account for financial resources to be used for the acquisition
or construction of ma'or ca ital facilities other than those
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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 rimaril throu h user charges.
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Internal Service Funds Internal Service Funds are used to
account for the financing of goods or services provided by one
department to other departments of the City on a cost
reimbursement basis.
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Note l: Summarv of Sianificant Accountina Policies (continued)
B. Fund Accountina (continued)
FIDUCIARY FUNDS:
Agency Funds Agency Funds are used to account for assets
held by the City as an agent for others.
C. Fixed Assets and Lona-Term Liabilities
The accounting and reporting of fixed assets and long-term
liabilities associated with a fund are determined by its
measurement focus. All governmental funds are accounted for
on a spending or "financial flow" measurement, which means
that only current assets and current liabilities are generally
included on their balance sheets. Their reported fund balance
is considered a measure of "available spendable resources."
Governmental fund operating statements present increases
(revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and
uses of "available spendable resou�ces" during a period.
Fixed assets used in governmental fund type operations are
accounted for in the General Fixed Assets Account Group,
rather than in the governmental funds. Public domain general
fixed assets consisting of certain improvements other than
buildings, including roads, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems have been
excluded from general fixed assets, as such items are
immovable and of value only to the City. No depreciation has
been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated
historical cost if historical cost is urtavailable. 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.
-24-
Note 1: Summarv of Sianificant Accountina Policies (continued)
C._Fixed As�ets and Lona-Term Liabilities (continued)
Long term liabilities expected to be financed from
governmental funds are accounted for in the General Long-Term
Debt Account Group, not in the governmental funds.
All proprietary funds are accounted for on a flow of economic
resources measurement focus. With this measurement focus, all
assets and all liabilities associated with the operations of
these funds are included on the balance sheet. Fund equity
(i.e., net total assets) is segregated into contributed
capital and retained earnings components. Proprietary
fund-type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net total assets.
D. Basis of Accountina
Governmental funds and agency funds are accounted for using
the modified accrual basis of accounting. Their revenues are
recognized when they become measurable and available.
Available means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include taxes,
special assessments, intergovernmental revenues, charges for
services, and investment earnings. Major revenues that are
not susceptible to accrual include licenses and permits, fees
and miscellaneous revenues; such revenues are recorded only as
received because they are not measurable until collected.
Interest on special assessments is recognized as revenue when
due, net of delinquencies.
Expenditures are generally recognized �under the modified
accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general
long-term debt which is recognized when due.
All proprietary funds are accounted for using the accrual
basis of accounting. Their revenues are recognized when they
are earned, and expenses are recognized when they are
incurred. Unbilled Water and Sewer fund utility service
receivables are recorded at year end.
E. Budaets and Budaetarv Accountinq
The City follows these procedures establishing the budgetary
data reflected in the financial statements:
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Note 1: Summarv of Sianificant Accountina Policies (continued)
E. Budaet� and Budaetarv Accountina (continued)
1. In August, the City Manager submits to the City Council
proposed operating budgets for the fiscal year commencing the
following January. The operating budgets include expenditures
and the means of financing them.
2. The County mails individual property tax notices showing
I the ta s osed bud e
xe which would result from the ro ts of all
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taxing units to each property in November.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted through passage of a
resolution by the City Council in the month of December.
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
extent they have not been expended.
8. Formal budgetary integration is employed as a management
control device during the year for the General Fund and
Special Revenue Funds. Formal budgetary integration is not
employed for Debt Service Funds because effective budgetary
control is alternatively achieved through general obligation
bond indenture provisions. Budgetary ,control for Capital
Projects Funds is accomplished through•the use of project
controls.
9. Budgets are adopted on a basis consistent with generally
accepted accounting principles. Annual appropriated budgets
are adopted for the General and Special Revenue Funds.
10. Budgetary control is maintained at the department level,
in compliance with the City Council's directions.
11. Budgeted amounts are as originally adopted, or as amended
by the City Council. Individual amendments were not material
in relation to the original appropriations.
F. Investments
Cash balances from all funds are combined and invested to the
extent available in authorized investments (see Note 2).
Earnings from such investments are allocated to the respective
26
Note 1: Summarv of Sianificant Accountincr Policies (continued)
F. Investments (continued)
funds on the basis of applicable cash balance participation by
each fund. Cash investments are stated at amortized cost
(which approximates marketj except for Deferred Compensation
Fund assets which are recorded at market. All highly liquid
unrestricted investments with a maturity of three months or
less when purchased are considered to be cash equivalents.
All of the investments allocated to the proprietary fund types
have maturities of 90 days or less. Therefore, the entire
balance in such fund types is considered to be cash
equivalents.
G. Inventorv
Inventories in the proprietary funds are valued at cost, using
the first-in/first-out (FIFO) method in the Earle Brown
Heritage Center Fund and weighted average in the Municipal
Liquor Fund. The costs of governmental fund type supplies are
recorded as expenditures when purchased.
H. Restricted Assets and Retained Earnincts
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. The City Council passed a resolution
establishin a$1 000 000 endowment account in the Ca ital
g P
Project Economic Development Authority Fund. The endowment
account's interest is used by the E.D.A. to fund various
housing programs. Investments in the Refunding Tax Increment
Bonds of 1992 Debt Service Fund are classified as restricted
because the securities have been placed in an irrevocable
trust with an escrow agent.
I. Accumulated Unbaid Vacation and Sick Pav
The City pays employees severance pay upon termination of
employment based on accumulated sick leave and accrued
vacation. Such pay is accrued as an expenditure/expense as it
is earned.
J. Fund Eauitv
Contributed capital is recorded in proprietary funds that have
received capital grants or contributions from developers,
customers or other funds.
Reserves represent those portions of fund equity not
appropriable for expenditure or legally segregated for a
specific future use. Designated fund balance represents
tentative plans for future use of financial resources.
-27-
Note 1: Summarv of Sianificant Accountina Policies (continued)
II K. Pronertv 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.
I Real ro ert taxes ma be aid b tax a ers in two e ual
P P Y Y P Y P Y q
installments on May 15 and October 15. Personal property
taxes may be paid on February 28 and June 30. The County
provides tax settlements to cities and other taxing districts
two times a year, in July and December.
Taxes which remain unpaid at December 31 are classified as
delinquent taxes receivable and are fully offset by deferred
revenue because they are not known to be available to finance
current expenditures. At December 31, 1994, the City has
I� recorded $79,160 in deferred revenue for the General Fund for
estimated property tax abatements that are anticipated to be
repaid to the County in early 1995.
L. Reclassification
Certain 1993 accounts have been reclassified to conform to the
1994 presentation.
M. 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.
I
II
-28-
Note 2: Cash and Investments
A. Denosits
In accordance with Minnesota Statutes, the City maintains
deposits at those depository banks authorized by the City
Council. All such depositories are members of The
Federal Reserve System.
Minnesota Statutes require that all City deposits be
protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110� of the
deposits not covered by insurance or bonds (140� in the
case of mortgage notes pledged).
Authorized collateral includes the legal investments
described below, as well as certain first mortgage notes,
and certain other state or local government obligations.
Minnesota Statutes require that securities pledged as
collateral be held in safekeeping by the City treasurer
or in a financial institution other than that furnishing
the collateral.
At December 31, 1994 the carrying amount of the City's
demand deposits was $804,107 and the bank balance was
$1,322,723. Of the bank balance, $265,046 was covered by
federal depository insurance (risk category A), $497,965
was on deposit at the Federal Reserve Bank of Minneapolis
in the City's name, and the remainder was covered by
collateral held in the pledging bank's trust department
in the City's name (risk category B),
Risk Catectorv
(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
secur•ities 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.
-29-
Note 2: Cash and Investments (continued)
B. Investments (continued)
(b) Shares of investment companies registered under
the Federal Investment Company Act of 1940 and
whose only investments are in securities described
in (a) above.
(c) General obligations of the State of Minnesota or
any of its municipalities.
(d) Bankers acceptances of United States banks eligible
for purchase by the Federal Reserve System.
(e) Commercial paper issued by United States
corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days 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 categoriz�d 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 ir� the Gity's name.
Category 2 includes uninsured and unregistered
investments for which the securities are held by the
counter party's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered
investments for which the securities are held by the
counter party, or by its trust department or agent, but
not in the City's name.
Balances at December 31, 1994
Credit Risk Category Carrying Market
Securities Type 1 2 3 Amount Value
U.S. Govemments $16,402,700 $16,402,700 $16,117,762
Federal Agencies 11,335,000 11,335,000 10,948,507
Commercial Paper 2,000,000 2,000,000 1,950,539
$29,737,700 $0 $0 $29,737,700 $29,016,808
-30-
NOTE 2: Cash and Investments (continued)
SUMMARY OF CASH AND IIdVESTMENTS
Balances at December 31, 1994
Cash in Banks Carrying
Amount
Marquette Bank Brookdale, Brooklyn Center, Minnesota $202,368
American Bank, St. Paul, Minnesota 20
Riverside Bank, Minneapolis, Minnesota 103,754
Federal Reserve Bank, Minneapolis, Minnesota 497,965
Total Cash in Bank $804,107
Investments:
Investment Tvpe Interest Rate MaturitX
U.S. Treasury notes 4.1 7.6% 1995 1999 $16,402,700
Federal Home Loan Bank bonds 4.6 8.2°� 1995 1998 4,400,000
Federal Home Loan Mortgage
bonds 5.2% 1998 300,000
Federal National Mortgage
Association bonds 4.4 8.2% 1996 1998 5,635,000
Federal Farm Credit Bank bonds 5.5°k 1995 1,000,000
Commercial Paper 6.4 6.6% 1995 2,000,000
Total Investments $29,737,700
Minnesota Municipal Money Market 1,452,578
Money Market Fund, First Trust, St. Paul, Minnesota 72,661
Total Cash and Investments $32,067,046
Accrued interest on investments 351,172
Discounts on investments (127,736)
Premiums on investments 27,628
Change funds 7,593
Performance Deposits (25,566)
Temporary Improvement Notes (Note 3) 3,121,090
Total Cash, Cash Equivalents, Investments,
and Restricted Investments $35,421,227
Other Assets Investment Pools Deferred Compensation Plan $2,635,726
From Exhibit 1 COMBINED BALANCE SHEET
Cash and investments $26,238,508
Restricted investments 9,182,719
$35,421,227
31 r
I
Note 3: Temporarv
Imbrovement Notes
Temporary Improvement Notes represent interfund borrowing
to provide interim financing for construction projects or
capital outlay expenditures. Such loans bear interest at
7 percent and totaled $3,121,090 and $2,713,882 at
December 31, 1994 and 1993, respectively. For collection
purposes, all of these notes are considered current,
since they are payable on demand.
Individual fund note balances at December 31, 1994 were
as follows:
Interfund Interfund
Receivable Pavable
General $1,044,340
E. Brown T.I.F. District $1,624,344
Tax Increment Bonds of 1985 104,621
Tax Increment Bonds of 1991 109,417
Refunding Bonds of 1987 21,790
Street Improv Bonds of 1994 23,471
Capital Improvements Fund 985,503
M.S.A. Construction Fund 454,716
Spec Assess Construct Fund 1,107,541
Economic Development Authority 377,232
i E. Brown Heritage Center Fund ___389,205
TOTALS $3,121,090 $3,121,090
I
1
1
t
32
Note 4: Fixed Assets
Changes in the General Fixed Assets Account Group during 1994 were as follows:
Balance Balance
Jan. 1, 1994 Additions Disposals Transfers in Dec. 31, 1994
Land $2,369,801 $2,369,801
Buildings 8� Improvements 4,944,348 $472,886 5,417,234
Park Improvements 2,953,620 99,181 $13,697 3,039,104
Fumiture 8 Fixtures 995,626 153,000 34,385 1,114,241
Departmental Equipment 996,945 50,053 25,730 $24,161 1,045,429
TOTAL GENERAL FIXED
ASSETS $12,260,340 $775,120 $73,812 $24,161 $12,985,809
The following is a summary of proprietary fund-type fixed assets at December 31, 1994:
Internal
Enterprise Service
Funds Funds
Land $2,738,600
Land Improvements 84,981
Buildings 8� Improvements 16,119,716
Mains Lines 15,971,551
Fumiture Fixtures 1,122,255
Departmental Equipment 133,859 $3,936,720
Total 36,170,962 3,936,720
Less accumulated depreciation (8,203,431) (1,982,949)
Net $27,967,531 $1,953,771
Construction in progress is included in building and park improvements and is comprised of the following:
Total Expended
Project to
Proiect Authorization 12/31/94 Committed
Central Garage Improvements $1,611,852 $623,301 $998,369
Park Playground Equipment 176,836 84,151 101,658
Total $1,788,688 $707,452 $1,100,027
-33-
Note 5: Lona-Term Debt
I The City's long-term debt includes state aid street bonds,
special assessment improvement bonds, and tax increment bonds;
all of which are recorded in the General Long-Term Debt
Account Group. In addition, the City issued storm sewer
revenue bonds which are recorded as a liability in the Storm
Drainage Fund.
The following is a summary of bond transactions of the City
for the.year ended December 31, 1994:
State Special Tax
Aid Street Assessment Revenue increment
Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $2,750,000 $275,000 $14,620,000 $17,645,000
Bonds issued 835,000 $1,830,000 2,665,000
Bonds retired 145,000 100,000 535,000 780,000
Bonds payable
December31 $2,605,000 $1,010,000 $1,830,000 $14,085,000 $19,530,000
State Aid Street Bonds
Future allotments from Municipal State Aid for Streets will
repay these bonds which are backed by the full faith and
credit of the City.
St�ecial Assessment Bonds
The special assessment bonds are payable primarily from
special assessments levied for local improvements and are
backed by the full faith and credit of the City.
Revenue Bonds
The Storm Sewer �Bonds are general obligation revenue bonds and
are backed by the full faith and credit of the City. Revenues
to repay the bonds are provided by the Storm Drainage Fund.
Tax Increment Bonds
Tax Increment Bonds will be repaid from incremental tax
increases on the property within certain development districts
and are backed by the full faith and credit of the City.
I I�
34
Note 5: Lona-Term Debt (continued)
Refundinq Tax Increment Bonds_
In a prior year, the City issued $4,270,000 in General
Obligation Tax Increment Refunding Bonds, Series 1992A with a
net interest rate of 5.329�. The proceeds of the 1992 bond
issue will be used to advance refund $4,180,000 of the City's
$5,250,000 General Obligation Tax Increment Bonds, Series
1985A, callable on February 1, 19.96 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.
Long-term debt maturities (including interest of $7,247,173) are as follows:
State Special Tax
Aid Street Assessment Revenue Increment
Bonds Bonds Bonds Bonds Total
1995 $306,325 $133,521 $90,625 $'1,461,130 $'l,991,601
1996 307,872 158,608 198,315 1,501,995 2,166,790
1997 308,588 158,065 237,595 1,917,523 2,621,771
1998 308,478 113,365 240,390 1,975,825 2,638,058
1999 307,560 109,605 237,558 2,072,383 2,727,106
2000 on 2,183,308 616,450 1,433,160 10,398,929 14,631,847
$3,722,131 $1,289,614 $2,437,643 $19,327,785 $26,777,173
-35-
Note 5: Long-Term Debt (continued)
Long-term debt obligat+ons outstanding at year-end are summarized as foliows:
Bond
Paymerrt Issue Maturity Authorized
Rates Dates Date Date Md Issued Retired Outstanding
State Aid Street Bonds
G.O. State-Aid Street Bonds 4.7-6.65 4-01 10-01 09-01-91 04-01-06 53,000,000 a395,000 $2,605.000
Total $3,000,000 $395,000 $2,605,000
Special Assessment Bonds
1987 Refunding Bonds 4.7-5.5 2-01 8-01 04-01-87 02-01-97 E1,200,000 $1,025,000 $175,000
1994 Street Improvement Bonds 4.1-5.5 2-01 8-01 08-01-94 02-01-05 835,000 835.00�
Total $2,035,000 �1,025,000 $1,010,
000
Revenue Bonds
1994 Storm Sewer Revenue Bonds 4.2-5.4 2-01 8-01 08-01-94 02-01-05 31,830,000 $1,830,000
Total $1,830,000 $1,830�000
Tax Increment Bonds
1985 G.O. Tax Increment Bonds 6.7�8.1 2-01 5-01 12-01-85 OZ-01-03 35,250,000 E535,000 $4,715,000
i 1991 G.O. Tax tncrement Bonds 4.7�.0 2-01 8-01 03-01-91 02-01-04 6,050,000 950,000 5,100,000
1992 G.O. Refunding Tax Incr Bonds 4.5-5.6 2-01 8-01 OZ-01-92 02-01-03 4,270,000 4,270,000
Total a15,570,000 51,485,000 $14,085,000
Note 6: Contributed Capital
During 1994 contributed capital changed by the following amounts:
Irrtemal
E�1tB�n58 $6NIC8
Funds Funds
Additions:
Transfers In b1,277,177
Deductions
Transfer to Retained Eamings �a��
Transfers Out (24,161)
Depreciation on contributed assets �338�532) �275�258)
Net Change �393,852) 9n�758
Contributed Capital, January 1, 1994 21,581,512 3,136,597
Contributed Cap'dal, December31, 1994 �21,187,660 a4,114,355
-36-
Note 7: Segment Information as of and for the Year Ended December 31, 1994 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 $2,698,373 $302,050 $2,248,111 $134,740 $1,053,689 $2,126,822 $685,011 $9,248,796
Depreciation Expense 15,717 13,659 343,328 236,850 110,855 888 721,297
Operating Income (Loss) 148,125 42,620 (440,568) 15,868 95,866 318,484 480,126 660,521
Operating Transfers In 124,842 124,842
Operating Transfers (Out) (100,000) (100,000)
Equity Transfer (Out) (14,549) (110,342) (147,022) (218,828) (128,358) (619,099)
Net Income (Loss) 39,036 (24,397) (338,532) 21,005 374,972 533,443 482,420 1,087,947
Property, Plant Equipment: I
Additions 51,384 45,455 51,838 576,809 297,606 1,131,873 2,154,965
Deletions 70,531 107,804 175 130,076 137,517 62,555 508,658
Net Working Capital 172,408 3,512 (80,039) 105,712 1,265,121 3,755,161 1,234,375 6,456,250
Total Assets 676,075 1,718,702 10,446,840 106,27� 13,857,231 9,719,031 3,287,093 39,811,249
Bonds and Other Long-Term
Liabilities Payable from
Operating Revenues 136,172 1,150,000 1,830,000 3,116,172
Total Equity $378,775 $562,323 $9,884,857 $105,712 $13,798,029 $9,646,174 $1,350,373 $35,726,243
NOTE Pension Plans:
Public Em�olovees Retirement Association (PERA1
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. All 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, 1994, was $4,214,312 and
$1,945,791 respectively; the City's total payroll was $7,219,832.
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 benef it
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 l0 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 arid 1.5 percent for Coordinated members. For PEPFF
members, the annuity accrual rate is 2.65 percent for each year of
service. For PERF members whose annuity is calculated using Method
1, and for all PEPFF members, a full annuity is available when age
plus years of 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
38
NOTE 8: Pension Plans (continued)
A. Plan Descri�tion (continued)
annuity is payable over joint lives. Members may also leave their
contributions in the fund upon termination of public service, in order
to qualify for a deferred.annuity at retirement age. Refunds of
contributions are available at any time to members who leave public
service, but before retirement benefits begin.
B. Contributions Reauired and Contributions Made
Minnesota Statutes Chapter 353 sets the rate for employer and employee
contributions. The City makes annual contributions to the pension
plans equal to the amount required by state statutes. According to
Minnesota Statutes Chapter 356.215, Subd. 4(g), the date of full
funding required for the PERF and the PEPFF is the year 2020. As part
of the a u
nn al actuarial valuation PERA s actuar determines the
Y
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
Employee �loyer Rates*
Public Employees
Retirement Fund:
Basic Plan and
Coordinated Plan 4.30� 4.60� 9.58�
Police Fire Fund 7.90� 11.70� 17.45�
The recommended rates scheduled above represent the required rates
for fiscal year 1994 contributions as reported in the July 1, 1993,
actuarial valuation reports.
Total contributions made by the City during fiscal year 1994 were:
Percentaae of
Contribution Covered Pavroll
Emplovees �lover �lovees �loyer
Public Employees
Retirement Fund:
Basic Plan 7,213 9,405 8.23� 10.73$
Coordinated
Plan 174,557 184,873 4.23� 4.48%
Police Fire
Fund _148,179 _222,266 7.60� 11.40�
TOTALS $329,949 $416,544
-39-
NOTE 8: Pension Plans (continued)
B: Contributions Reauired and Contributions Made fcontinued)
The City's contribution for the year ended June 30, 1994, to the
Public Employees Retirement Fund, represented approximately .16
percent of total contributions required of all participating entities.
For Public Employees Police and Fire Fund, contributions for the year
ended June 30, 1994, represented .7 percent of total contributions
required of all participating entities.
C. Fundina Status and Proaress
1. Pension Benefit Obligation
The "pension benefit obligation" is a standardized disclosure measure
I 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 mak�
separate measurements of assets and pension benefit obligation for
individual employers.
The pension benefit obligations as of June 30, 1994,
are shown below (in millions):
PERF PEPFF
Total pension benefit obligation $5,626 $1,021
Net assets available for benefits,
at cost (market value for
PERF $4,763; PEPFF $1,237) $4,734 $1,230
Unfunded (assets in excess of)
pension benefit obligation 892 (209)
The measurement of •the pension benefit obligation is based on an
actuarial valuation as of June 30, 1994. Net assets available to pay
pension benefits were valued as of June 30, 1994.
For the PERF, significant actuarial assumptions used in the
calculation of the pension benefit obligation include.(a) a rate of
return on the investment of present and future assets of 8.5 percent
per year, compounded annually, prior to retirement, and 5 percent per
year, compounded annually, following retirement; (b) projected salary
increases taken from a select and ultimate table; (c) payroll growth
at 6 percent per year, consisting of 5 percent inflation and one
percent due to growth in group size; (d) post-retirement benefit
-40-
NOTE 8: Pension Plans (continued)
C. Fundinct Status and Proaress fcontinued)
increases that are accounted for by the 5 percent rate of return
assumption following retirement; and (e) mortality rates based on the
1983 Group Annuity Mortality Table set forward one year for retired
members and set back five years for each active member.
Actuarial assumptions used in the calculation of the PEPFF include (a)
a rate of return on the investment of present and future assets of 8.5
percent per year, compounded annually, prior to retirement, and 5
percent per year, compounded annually, following retirement, (b)
projected salary increases of 6.5 percent per year, compounded
annually, attributable to the effects of inflation; (c) post-
retirement increases that are accounted for by the 5 percent rate of
return assumption following retirement; and (d) mortality rates based
on the 1971 Group Annuity Mortality Table projected to 1984 for males
and females.
2. Changes in Plan Provisions
The 1994 legislative session did not include any benefit improvements
which would impact funding costs for the PERF and the PEPFF.
3. Changes in Actuarial Assumptions
Prior to fiscal year 1994, the salary increase assumption and
mortality tables used in the calculation of the pension benefit
obligation for the PERF were the same as those specified for the
PEPFF. For the July 1, 1994 actuarial valuation, PERA's board of
trustees approved new mortality rates updated to the 1983 Group
Annuity Mortality Table, salary increases which were changed to a
select and ultimate table, and new payroll growth assumption which was
changed from 6.5 percent to 6 percent. These changes were made to
reflect actual experience of the plan.
With the adoption of the actuarial assumption changes and the new
mortality table for the PERF, the pension benefit obligation increased
$56,596,000. The actuarial assumption changes also necessitated a
$81,201,000 transfer from the PERF benefit reserve to the PERF
Minnesota Post Retirement Investment Fund (MPRIF) Reserve to finance
the increased obligation for future retirement benefits. The change
in the mortality rate assumptions increased the PERF's costs because
pensioners are living longer than assumed previously. The change in
the salary increase assumption, however, offset some of the additional
costs because lower salary increases generally translate into lower
liabili�ies in the future.
Potential changes in the assumptions used for the PEPFF inay be made
in the future after completion of a special experience study for that
fund. Completion of the PEPFF experience study is expected by
February 1, 1995.
41
NOTE 8: Pension Plans (continued)
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,
1994. 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, 1994 and far the fiscal year then ended, PERA held no
securities issued by the City or other related parties.
Note 9: Pension Plan Brooklvn Center
Fire Debartment Relief Association
A. Plan Describtion
The City contributes to the Brooklyn Center Fire Department Relief
Association ("Association"). In accordan.ce with Government Accounting
j� Standards Board Statement No 5, it is classif ied as a def ined benef it
single employer public employee retirement system.
Volunteer f ire f ighters of the City are members of the Association and
its pension plan. An actuarial study was completed during 1993 which
developed a schedule of benefit increases which will take effect on
January 1 of each year. The plan's baseline benefit after 20 years
of service and attaining the age 50 increases.to $490 per month in
1994, $510 per month in 1995, and $530 per month in 1996. There are
additional benefits for service through 30 years. Vesting begins with
10 years of service and benefits are pro-rated for members who have
between 10 and 20 years of service. Members may choose to take a lump
sum settlement instead of the pension, equal ta $3,500 in 1994, $3,750
in 1995, and $4,000 in 1996, times the number of years of service,
with a maximum of 30 years. Spouse's, children's and funeral benefits
are also provided. These benefit provisions and all other
requirements are consistent with enabling state statutes.
The City levies property taxes at the direction of and for the benefit
of the association pian 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
-42-
Note 9: Pension Plan (continued)
B. Fundina Statu� and Proaress lcontinuedl
the association plans on a going-concern basis, assess progress made
in accumulating sufficient assets to pay benefits when due, and make
comparisons among plans. It is independent of the actuarial funding
method used to determine contributions to the plan, discussed in "C"
below.
The pension benefit obligation was determined as part of an actuarial
valuation at January 1, 1993 and updated as of January 1, 1995.
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, 1994, the unfunded pension benefit obligation was as
follows:
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,367,952
Current Employees
Employer-financed vested 1,242,271
Employer-financed non-vested 182,792
Total pension benefit obligation 2,793,015
Net assets available for benefits
(at cost, market equals $2,575,071) 2 685,737
Unfunded pension benefit obligation 107,278
The pension benefit obligation increased by $111,660 because of the
additional year of service credited to plan members.
C. Contributions Reauired and Contributions Made
Financial requirements of the association plan are determined on an
actuarial basis using the entry age normal actuarial cost method.
Normal cost is funded on a current basis. The unfunded actuarial
accrued liability is to be funded by December 31, 1999.
Contributions at the level specif ied by the last full actuarial study
will continue to be made until a new study revises the contribution
Ievel. The minimum tax levy obligation is the financial requirement
for the year less anticipated state aids. The funding strategy for
normal cost should provide sufficient resources to pay plan benefits
on a timely basis.
-43-
Note 9: Pension Plan (continued)
C. Contributions Recruired and Contributions Made fcontinued)
Total contributions to the plan in 1994 amounted to $102,895, of which
$36, 092 was levied by the City of Brooklyn Center and $66, 803 was from
the State of Minnesota. The contributed amounts were actuarially
determined as described above and were based on an actuarial valuation
as of January 1, 1993. The contributions represent funding for normal
cost of $68,698 and the amortization of the unfunded actuarial accrued
liability of $26,241.
Significant actuarial assumptions used to compute pension contribution
requirements are substantially the same as those used to determine the
standardized measure of the pension obligation. The computation of
the pension contribution requirements for 1994 was based on the same
I actuarial assumptions, benefit provision, actuarial funding method,
and other significant factors used to determine pension contribution
requirements in previous years with the exception of the change noted
in Section B above.
D. Trend Information
Trend information gives an indication of the progress made in
accumulating sufficient assets to pay benefits when due. Ten year
trend information may be found in the Association's annual financial
report for the year ended December 31, 1994. Three year trend
information for the Association is as follows:
1994 1993 1992
Available assets as a
percentage of benef it
obligation 96� 98� 101�
Unfunded pension benefit
obligation as a percentage
of covered payroll *not *not *not
applicable applicable applicable
City's contribution**
as a percentage of *not *not *not
covered payroll applicable applicable applicable
*The Brooklyn Center Fire Department is a volunteer organization;
thus, no covered payroll exists.
**The City's contribution was made in accordance with actuarially
determined requirements.
E. Related Partv Investments
As of December 31, 1994, the Association held no securities issued by
the City or other related parties.
-44-
Note 10: Individual Fund Disclosures
Deficit fund balan�es exist in the followinq funds:
Special Revenue Funds:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $2,159,874
This deficit is being funded through internal borrowing, which will
be repaid from future surplus tax increments.
Capital Project Funds:
Special Assessment Canstruction:
Unreserved deficit fund balance $787,706
This deficit is being funded through internal borrowing. Bonds may
be sold in the future if the balances of special assessments
receivable becomes large enough to justify an issue.
Enterprise Funds:
Golf Course:
Unreserved deficit retained earnings $74,563
This deficit is being funded through internal borrowing. It is
expected that future profits will cover the deficit.
Excess of Ext�enditures Over Abbrobriations
e ded
For the year ended December 31, 1994, expenditures exc e
appropriations in the Earle Brown Tax Increment Financing District
special revenue fund by $48,826. This overexpenditure was funded by
excess tax increment revenues.
Note il: Inter-fund Receivables and Pavables
Individual inter-fund receivable and payable balances at December 31,
1994, were as follows:
Due From/To Other Funds:
Receivable fund Payable fund Amount
Economic Development Community Development
Authority Block Grant 65,816
Munici al State Aid for S ecial Assessment
P P
Construction Construction 37,250
$103,066
-45-
Note 11: Inter-fund Receivables and Pavables (continued)
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 158,984
Capital Improvements Golf Course 1.150.000
$2,007,127
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
rate of 5� and is repaying the loan principal over a period extending
through the year 2009.
Note 12: Continaencies
There are several lawsuits pending in which the City is involved.
City Management estimates that the potential claims against the City
not covered by insurance resulting from such litigation would not
materially affect the financial statements of the City.
Note 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.
-46-
Note 13: Deferred Compensation Plan (continued)
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-Emplovment 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 8A), until they reach age 65 or
become eligible for medicare. Eight employees currentl.y meet this
requirement. The cost of retiree health care remiums for the ears
P Y
ended December 31, 1994 and 1993 was $43,477 and $13,996,
respectively. In addition, the expenditures in 1994 were reduced by
$10,668 and increased by $25,454 in 1993 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, 1999.
Note 15: Operatina Leases
The City leases space for the operation of one of its three municipal
liquor stores, under a five-year lease which expired on January 31,
1994. A new lease has been signed which will run through March 31,
1999. The lease provides for minimum rent payments, plus a pro-rata
share of common area expenses. Total rental expense under the lease
agreement for the years ended December 31, 1994 and 1993 was $35,410
and $38,896, respectively. Future minimum rent payments are as
follows:
Year Endina Amount
'1995 25,447
1996 26,327
1997 27,207
1998 28,087
1999 7,040
$114,108
-47-
Note 15: Ot�eratinq Leases (continued)
The Earle Brown Heritage Center Fund, which operates as an enterprise
fund, leases space to four tenants. Three of the leases have terms
greater than one year and require annual rent increases to cover the
anticipated effects of inflation. Rental revenues and expenditures
under the lease agreements are as follows:
1994 1993
Rental Revenues $116,326 $118,045
Rental Expenditures $103,248 93,302
Total minimum rentals to be received in the future under the lease
terms are as follows:
Year Endina Amount
1995 $105,736
1996 74,675
1997 40,517
1998 4,632
$225,560
Note 16: Fund Chanaes
The Street Improvement Bonds of 1994 Fund was.established as a debt
service fund in 1994.
48
City of Brooklyn Center, Minnesota
GENERAL FUND
The City of Brooklyn Center Home Rule Charter provides in Section
7.11 that "there shall be maintained in the City Treasury a
classification of Funds which shall provide for a General Fund for
the payment of such expenses of the City as the Council may deem
proper, and such other funds as may be required by statute,
ordinance or resolution".
The General Fund was established to account for all revenues and
expenditures which are not required to be accounted for�in other
funds. It has more diverse revenue sources than other funds.
These revenue sources include property taxes, licenses, permits,
fines and forfeits, intergovernmental, service charges, rents, and
investment earnings. The Fund's resources finance a wide range of
functions, including the current operations of general government,
public safety, public works, health and welfare, recreation, and
non-departmental expenditures.
This Fund utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in
the accounting period in which the related liability is incurred.
4 9
City of Brooklyn Center A_1
General Fund
�ALANCE SHEET
December 31, 1994
1994 1993
ASSETS
Cash and investments $5,027,109 $4,668,426
Temporary improvement notes 1,044,340 857,003
Accounts receivable 42,150 50,988
Taxes receivable 237,996 183,987
Due from other govemments 21,841 11,927
Interfund loan-E. Brown T.I.F. 105,074 105,074
TOTAL ASSETS $6,478,510 $5,877,405
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $266,152 $277,288
Due to other governments 44,132 4,961
Accrued salaries payable 109,902 123,328
Accrued vacation and sick pay 526,755 537,112
Deferred revenue 317,156 323,987
Total Liabilities 1,264,097 1,266,676
Fund Balance
Reserved for: Interfund loans 105,074 105,074
Unreserved fund balance
Designated:
Working capital 5,052,687 4,466,375
Appropriated to next budget 56,652 39,280
Total Fund Balance 5,214,413 4,610,729
TDTAL LIABILITIES AND FUND BALANCE $6,478,510 $5,877,405
-50-
City of Brooklyn Center A
General Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE BUDGET AND ACTUAL
For the Year Ended December 31, 1994
1994
Hctual Over
or Under(-) 1993
Budget Actual Budget Actuai
Revenues
Propertytaxes $5,884,414 $5,703,773 ($180,641) $5,006,710
Licenses and permits 289,300 317,620 28,320 300,480
Intergovernmental 3,320,818 3,353,247 32,429 3,167,214
Charges for senrices 943,133 825,959 (117,174) 838,883
Court fines 144,000 113,573 (30,42� 140,104
Investment earnings 170,000 218,671 48,671 249,688
Miscellaneous 14,500 22,899 8,399 29,523
Total Revenues 10,766,165 10,555,742 (210,423) 9,732,602
Expenditures
General government 1,808,919 1,692,268 (116,651) 1,560,674
Public safety 4,675,502 4,409,490 (266,012) 3,870,563
Public works 1,562,401 1,230,565 (331,836) 1,756,187
Communityservices 41,572 41,495 (7� 41,325
Parks and recreation 2,205,448 2,055,479 (149,969) 1,999,270
Economic development 206,000 199,982 (6,018) 178,703
Non-departmental 456,323 312,779 (143,544) 300,803
Total Expenditures 10,956,165 9,942,058 (1,014,107) 9,707,525
Excess or Deficiency of
Revenues Over Expenditures (190,000) 613,684 803,684 25,077
Other Financina Sources
Operating transfers in 190,000 190,000 0 175,000
Sale of cert. of indebtedness 0 120,000
Total Other Financing
Sources 190,000 190,000 0 295,000
Excess or Deficiency of
Revenues and Other Financing
Sources Over Expenditures 0 803,684 803,684 320,077
Fund Balance January 1 4,610,729 4,610,729 0 5,040,652
Equity Transfer Out (200,000) (200,000) 0 (750,000)
Fund Balance December 31 $4,410,729 $5,214,413 $803,684 $4,610,729
51
S-1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
�or the Year Ended December 31, 1994
1994
Actual Over
or .Under(-) 1993
Budget Actual Budget Actual
Ad Valorem Taxes
Property taxes $5,489,414 $5,286,415 ($202,999) $4,636,996
Penalties and interest (5,793) (5,793) (7,459)
Lodging tax 395,000 421,069 26,069 376,146
Special assessments 2,082 2,082 1,027
Total Ad Valorem Taxes 5,884,414 5,703,773 (180,641) 5,006,710
Licenses and Permits
Liquor and beer 112,700 120,939 8,239 104,077
Building permits 95,000 109,057 14,057 111,297
Mechanical permits 20,000 28,855 8,855 31,905
Sewer and water permits 1,000 1,046 46 620
Plumbing permits 8,000 14,202 6,202 15,701
Garbage licenses 2,100 2,145 45 2,005
Taxicab licenses 400 (400) 540
Mechanicallicenses 3,400 3,834 434 3,435
Service station licenses 1,700 1,805 105 2,326
Vehicle dealer licenses 1,000 600 (400) 950
Bowling licenses 700 1,153 453 708
Cigarette licenses 1,000 1,123 123 1,055
Swimming pool licenses 0 (45)
Sign permits 2,000 2,373 373 3,178
Rental dwelling permits 28,000 16,350 (11,650) 11,089
Amusement licenses 5,600 7,952 2,352 5,098
Dog licenses 5,700 4,765 (935) 4,746
Miscellaneous business license 1,000 1,421 421 1,795
Total Licenses and Permits 289,300 317,620 28,320 300,480
Interaovernmental
Federal grants:
Miscellaneous grants 6,000 9,549 3,549 25,844
Total Federal Grants 6,000 9,549 3,549 25,844
State grants:
Local govemment aid 1,757,227 1,757,227 0 1,697,804
Homestead credit aid 1,280,603 1,286,780 6,177 1,162,475
Police pension aid 195,988 215,838 19,850 205,637
Fireman pension aid 70,000 66,803 (3,197) 64,039
Police training 10,000 11,822 1,822 11,415
Miscellaneous grants 1,000 5,228 4,228 0
Total State Grants 3,314,818 3,343,698 28,880 3,141,370
Total Intergovernmental Rev. $3,320,818 $3,353,247 $32,429 $3,167,214
-52-
S_1
City of Brookl�m Center (Continued from
General Fund prior page)
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1994
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
Charaes for Services
General govemment charges $35,100 $39,578 $4,478 $37,967
Public safety charges 22,100 30,476 8,376 16,861
Recreation fees 885,933 755,905 (130,028) 784,055
Total Charges for Services 943,133 825,959 (117,174) 838,883
Court Fines
Fines 144,000 113,573 (30,427) 140,104
Total Court Fines 144,000 113,573 (30,427) 140,104
Miscellaneous
Interest on investments 170,000 218,671 48,671 249,688
Forfeited dn.�g money 12,481 12,481 20,990
Other 14,500 10,418 (4,082) 8,533
Total Miscellaneous 184,500 241,570 57,070 279,211
Total Revenues 10,766,165 10,555,742 (210,423) 9,732,602
Other Financina Sources
Operating transfers in:
Liquor Fund 100,000 100,000 0 100,000
M.S.A. Fund 90,000 90,000 0 75,000
Sale of cert. of indebtedness 0 120,000
Total Other Financing Sources 190,000 190,000 0 295,000
Total R v
e enues and Other Sources $10,956,165 $10,745,742 ($210,423) $10,027,602
53
City of Brooklyn Center S
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1994 next page)
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
Generai Govemment
Mayor and CounciL
Personal services $31,688 $31,709 $21 $30,944
Services and other charges 54,000 39,179 (14,821) 45,828
Total Mayor and Council 85,688 70,888 (14,800) 76,772
Charter Commission:
Services and other charges 9,500 2,768 (6,732) 916
Total Charter Commission 9,500 2,768 (6,732) 916
Administrative Office:
Personal services 306,240 289,194 (17,046) 270,717
Services and other charges 70,159 68,587 (1,572) 20,394
Capital outlay 0 2,338
Charged to other funds (22,719) (22,719) 0 (22,236)
Total Administrative Office 353,680 335,062 (18,618) 271,213
Elections and Voter Registration:
Personal services 48,811 39,962 (8,849) 19,297
Supplies 3,400 1,668 (1,732)
Services and other charges 7,425 5,685 (1,740) 3,669
Total Elections 59,636 47,315 (12,321) 22,966
Assessor's Office:
Personal services 191,144 185,815' (5,329) 184,726
Supplies 3,600 985 (2,615) 2,552
Services and other charges 14,048 10,436 (3,612) 2,917
Capital outlay 1,126 1,154 28
Total Assessor's Office 209,918 198,390 (11,528) 190,195
Finance:
Personal services 353,236 350,254 (2,982) 337,086
Supplies 2,450 2,088 (362) 2,713
Services and other charges 1,625 1,582 (43) 1,630
Capital outlay 0 652
Charged to other funds (199,048) (199,048) 0 (195,75�
Total Finance $158,263 $154,876 ($3,38� $146,324
54
City of Brooklyn Center S-2
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1994 next page)
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
General Govemment (continued)
Independent Audit:
Services and other charges $18,000 $17,850 ($150) $17,500
Total Independent Audit 18,000 17,850 (150) 17,500
Legal:
Services and other charges 204,196 174,709 (29,487) 185,216
Total Legal 204,196 174,709 (29,487) 185,216
Government Buildings:
Personal services 139,252 138,189 (1,063) 114,388
Supplies 27,500 20,465 (7,035) 27,089
Services and other charges 173,074 182,076 9,002 171,357
Capital outlay 16,570 15,663 (907) 16,743
Total Govemment Buildings 356,396 356,393 (3) 329,577
Data Processing:
Personal services 59,445 57,288 (2,157) 51,048
Supplies 9,10fl 7,310 (1,790) 10,040
Services and other char�es 207,559 193,399 (14,160) 201,569
Capital outlay 88,146 86,628 (1,518) 65,850
Charged to other funds (10,608) (10,608) 0 (8,512)
Total Data Processing 353,642 334,017 (19,625) 319,995
Total General Govemment 1,808,919 1,692,268' (116,651) 1,560,674
Public Safetv
Police Protection:
Personal services 3,084,409 2,909,028 (175,381) 2,821,642
Supplies 79,154 78,233 (921) 46,277
Services and other charges 609,030 560,925 (48,105) 270,014
Capital outlay 30,540 58,769 28,229 68,460
Total Potice Protection 3,803,133 3,606,955 (196,178) 3,206,393
Fire Protection:
Personal services 299,653 264,362 (35,291) 272,770
Supplies 28,382 29,080 698 24,565
Services and other charges 161,154 158,964 (2,190) 32,093
Capital outlay 43,680 39,887 (3,793) 36,448
Total Fire Protection $532,869 $492,293 ($40,576) $365,876
55
City of Brooklyn Center S
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1994 next page)
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
Public Safetv (continued)
Protective Inspection:
Personal services $262,885 $251,014 ($11,871) $257,805
Supplies 1,550 3,382 1,832 587
Services and other charges 28,072 15,341 (12,731) 6,131
Capital outlay 850 (850)
Total Protective Inspection 293,357 269,737 (23,620) 264,523
Emergency Preparedness:
Personal services 35,083 31,769 (3,314) 30,419
Supplies 1,400 765 (635) 472
Services and other charges 9,660 7,971 (1,689) 2,880
Total Emergency Preparedness 46,143 40,505 (5,638) 33,771 �i
Total Public Safety 4,675,502 4,409,490 (266,012) 3,870,563
Public Works
Engineering Department:
Personal seivices 492,476 315,313 (177,163) 459,526
Supplies 4,400 7,510 3,110 4,220
Services and other charges 23,856 22,924 (932) 5,705
Charged to other funds (206,914) (195,949) 10,965 (140,069)
Total Engineering Dept. 313,818 149,798 (164,020) 329,382
Street Department:
Personal services 558,120 456,211 (101,909) 547,694
Supplies 165,300 142,988 (22,312) 164,977
Services and other charges 625,163 581,568 (43,595) 335,037
Capital outlay 0 51,324
Charged to other funds (100,000) (100,000) 0 (100,000)
Total Street Dept. 1,248,583 1,080,767 (167,816) 999,032
Maintenance Shop:
Personal services 0 179,290
Supplies 0 222,175
Services and other charges 0 23,390
Capital outlay 0 2,918
Total Maintenance Shop 0 0 0 427,773
Total Public Works $1,562,401 $1,230,565 ($331,836) $1,756,187
56
Cit of Brookl n Center S-2
Y Y
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1994 next page)
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
Communitv Services
Social Services
Service and other charges $41,572 $41,495 ($7� $41,325
Total Social Services 41,572 41,495 (7� 41,325
Total Community Services 41,572 41,495 (7� 41,325
Parks and Recreation
Administration:
Personal services 189,325 186,154 (3,171) 274,464
Supplies 13,000 8,084 (4,916) 7,873
Services and other charges 35,991 33,918 (2,073) 24,698
Total Administration 238,316 228,156 (10,160) 307,035
Adult Programs
Personal services 139,350 140,005 655 104,389
Supplies 49,770 40,800 (8,970) 51,631
Services and other charges 182,120 142,015 (40,105) 150,623
Capital outlay 0 296
Total Adult Programs 371,240 322,820 (48,420) 306,939
�I Teen Programs:
Personal services 8,679 8,495 (184) 7,735
Supplies 496 1,301 805 765
Services and other charges 6,417 5,740 (67n 5,710
Total Teen Programs 15,592 15,536 (56) 14,210
Children's Programs
Personal services 75,254 73,367 (1,88'n 62,093
Supplies 12,861 11,646 (1,215) 10,963
Services and other charges 14,799 13,885 (914) 12,193
Total Children's Programs 102,914 98,898 (4,016) 85,249
General Programs
Personal services 46,731 44,837 (1,894) 35,415
Supplies 1,571 308 (1,263) 6,371
Services and other charges 41,627 40,703 (924) 38,083
Total General Programs $89,929 $85,848 ($4,081) $79,869
j
5 7
City of Brooklyn Center S
General Fund
SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL (Continued from
For the Year Ended December 31, 1994 prior page)
1994
Actual Over
or Under(-) 1993
Budget Actual Budget Actual
Parks and Recreation (continuedl
Community Center:
Personal services $433,558 $423,919 ($9,639) $405,021
Supplies 67,292 66,905 (38� 61,058
Services and other charges 149,479 158,783 9,304 170,339
Capital outlay 0 8,351
Total Community Center 650,329 649,607 (722) 644,769
Park Maintenance:
Personal services 349,919 300,382 (49,537) 290,314
Supplies 76,400 58,090 (18,310) 73,802
Services and other charges 304,659 291,703 (12,956) 113,208
Capital outlay 6,150 4,439 (1,711j 83,875
Total Park Maintenance 737,128 654,614 (82,514) 561,199
Total Parks and Recreation 2,205,448 2,055,479 (149,969) 1,999,270
Economic Develo�ment
Convention Bureau:
Services and other charges 206,000 199,982 (6,018) 178,703
Total Economic Development 206,000 199,982 (6,018) 178,703
Nondeuartmental
Expenditures not Charged to
Departments:
Personal services 1,224 1,224 206
Supplies 30,300 25,681 (4,619) 26,441
Services and other charges 393,023 255,064 (137,959) 265,078
Capital outlay 33,000 30,810 (2,190) 9,078
Total Nondepartmental 456,323 312,779 (143,544) 300,803
Total Expenditures $10,956,165 $9,942,058 ($1,014,10n $9,707,525
-58-
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The Special Revenue Funds are established to account for revenues
derived from taxes and/or other specific revenue sources. These
resources are usually restricted by statute, City Charter or ordinance
to finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the
accounting period in which the related liability is incurred.
Earle Brown Farm Tax Increment Financinq District: This fund has the
authority to collect tax increments which are used for the historic
restoration of the Earle Brown Farm and for debt service payments of
bonds which also were issued for that purpose.
Diseased Tree Removal Fund: This Fund was established to account for
the collection of resources and expenditure of these resources for
diseased tree control. Costs are reimbursed by private property
owners, or the General Fund, depending upon where the tree was
located.
Communitv 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.
5 9
i
Cit of Brookl n Center -1
Y Y B
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 1994
Earle Brown
Tax Incr. Diseased Community
Financing Tree Development Totals
District Removal Block Grant 1994 1993
ASSETS
Cash and investments $53,189 $53,189 $39,528
Accounts receivable $280,000 572 280,572 460
Deferred special assessments 21,010 21,Oi 0 26,430
Delinquentspecial assessments 1,145 1,145 1,100
Due from other govemments $65,816 65,816 148,006
TOTALASSETS $280,000 $75,916 $65,816 $421,732 $215,524
a LIABILITIES AND FUND BALANCES (DEFICITS)
0
Liabilities
Accounts payable $19,414 $19,414 $2,602
Due to other govemments 97,973 97,973 76,404
Due to other funds $65,816 65,816 147,584
Temporary improvement notes 1,624,344 1,624,344 1,371,744
Deferred revenue $22,155 22,155 27,530
Advances from other funds 698,143 698,143 698,143
Totai Liabilities 2,439,874 22,155 65,816 2,527,845 2,324,007
Fund Balances lDeficits)
Unreserved (2,159,874) 53,761 0 (2,106,113) (2,108,483)
Total Fund Balances (Deficits) (2,159,874) 53,761 0 (2,106,113) (2,108,483)
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $280,000 $75,916 $65,816 $421,732 $215,524
City of Brooklyn Cerrter B-2
Special Revenue Funds (Corrtinued next page)
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1994
Earle Brovm Farm
Tax Incremerrt District Diseased Tree Removal
Over Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Propertytaxes $1,350,000 �1,514,763 $164,763
Special assessmeMs a15,000 $14,888 ($112)
Total Property Taxes 1,350,000 1,514,763 164,763 15,000 14,888 (112)
Intergovernmental:
Federal grants
Total Intergovernmental
Charges for services:
Fees 15,000 18,413 3,413
Total Charges for Services 15,000 18,413 3,413
Miscellaneous:
Investmenteamings 1,500 2,233 733
Total Miscellaneous 1,500 2,233 733
Total Revenues 1,350,000 1,514,763 164,763 31,500 35,534 4,034
Exoenditures
Services and othercharges 1,100 72,270 71,170 28,000 19,159 (8,841)
Interest 104,000 81,656 (22,344)
Total Expenditures 105,100 153,926 48,826 28,000 19,159 (8,841)
Excess of Revenues Over Expenditures 1,244,900 1,360,837 115,937 3,500 16,375 12,875
Other Financina Sources or Uses (-1
Operafing transfers out (1,403,179) (1,374,842) 28,337
Excess or Deficiency of Revenues and Other Sources
Over Expenditures and Other Uses (158,279) (14,005) 144,274 3,500 16,375 12,875
Fund Balances (Deficits) January 1 (2,145,869) (2,145,869) 0 37,386 37,386 0
Fund Balances (Deficits) December 31 ($2,304,148) (a2.159.874) 3144,274 a40.886 a53,761 $12,875
61
City of Brooklyn Cerrter B=2
Special Revenue Funds (Continued ftom prior page)
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
For the Year Ended December 31, 1994
Community Developme�
Block Grant Totals
Over Over
I Under(-) 1994 1994 Under(-) 1993
Dudget Actual Budget Budget Actual Budget Actual
Revenues
Propertytaxes y1,350,000 31,514,763 a164,763 a1,508,964
Special assessments 15,000 14,888 (112) 17,461
Total Property Taxes 1,365,000 1,529,651 164,651 1,526,425
Intergovernmental:
Federal grants $235,627 $184,836 ($50,791) 235,627 184,836 (50,791) 240,781
Total Intergovernmental 235,627 184,836 (50,791) 235,627 184,836 (50,791) 240,781
Charges for services:
Fees 15,000 18,413 3,413 11,483
Total Charges for Services 15,000 18,413 3,413 11,483
Miscellaneous:
Investmenteamings 1,500 2,233 733 1,838
Total Miscellaneous 1,500 2,233 733 1,838
I Total Revenues 235,627 184,836 (50,791) 1,617,127 1,735,133 118,006 1,780,527
Exoenditures
Services and other charges 29,100 91,429 62,329 24,440
Interest 104,000 81,656 (22,344) 97,653
Total Expenditures 133,100 173,085 39,985 122,093
Excess of Revenues Over Expenditures 235,627 184,836 (50,791) 1,484,027 1,562,048 78,021 1,658,434
Other Financina Sources or Uses (-1
Operating transfers out (235,627) (184,836) 50,791 (1,638,806) (1,559,678) 79,128 (1,525,591)
Excess or Deficiency of Revenues and Other Sources
Over Expenditures and Other Uses 0 0 0 (154,779) 2,370 157,149 132,843
Fund Balances (Deficits) January 1 0 0 0 (2,108,483) (2,108,483) 0 (2,241,326)
Fund Balances (Deficits) December 31 $0 a0 a0 (32,263,262) ($2,106.113) a157,149 ($2.108.483)
1
-62-
I
City of Brooklyn Canter, 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:
State Aid Street Bonds Debt Service Fund: This Fund accounts for the
accumulation of state aid allotments, for payment of principal and
interest on bonds issued in 1991 to finance a comprehensive
improvement and upgrading 69th Avenue North as a state aid route.
Tax Increment Bonds of 1985 1991 Funds: These Funds were
established to account for the accumulation of resources for payment
of principal and interest on general obligation bonds issued in 1985
and 1991 to finance the purchase and red�velopment of the historic
Earle Brown Farm in Brooklyn Center.
Refundina Tax Increment Bonds of 1992 Fund: This fund was established
to account for the resources that will be used to advance refund the
Tax Increment Bonds of 1985.
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.
Street Imbrovement Bonds of 1994 Fund: This Fund was established to
account for the collection of special assessments and property taxes
for the payment of principal and interest on general obligation
improvement bonds. The bonds were sold during 1994 to finance the
first year of the City's neighborhood street improvement program.
i
1
-63-
I�
City of Brooklyn Center C_1
Debt Service Funds
COMBWlNG BALANCE SHEET
December 31, 1994
Refunding
Tax Tax Tax Street
Increment Increment Increment Refunding Improvement
Bonds Bonds Bonds Bonds Bonds Totals
of 1985 of 1991 of 1992 of 1987 of 1994 1994 1993
ASSETS
Cash and investments $502,773 $525,819 $104,712 $112,782 $1,246,086 $1,403,812
Temporary improvement notes 104,621 109,417 21,790 23,471 259,299 258,456
Special assessments receivable:
Deferred 287,808 157,607 445,415 428,305
Delinquent 7,922 7,922 6,685
Restricted Investments $4,182,719 4,182,719 4,184,451
rn
TOTALASSETS $607,394 $635,236 $4,182,719 $422,232 $293,860 $6,141,441 $6,281,709
LIABI�ITIES AND FUND BALANCES
Liabilities
Deferred revenue $295,730 $157,607 $453,337 $434,990
Total Liabilities 295,730 157,607 453,337 434,990
Fund Balances
Reserved for debt service $607,394 $635,236 $4,182,719 126,502 136,253 5,688,104 5,846,719
Total Fund Balances 607,394 635,236 4,182,719 126,502 136,253 5,688,104 5,846,719
TOTAL LIABILITIES AND
FUND BALANCES $607,394 $635,236 $4,182,719 $422,232 $293,860 $6,141,441 $6,281,709
r
City of Brookiyn Center G2
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1994
State Tax Tax Tax Street
Aid increment Increment Increment Refunding Improvement
Street Bonds Bonds Bonds Bonds Bonds Totals
Bonds of 1985 of 1991 of 1992 of 1987 of 1994 1994 1993
Revenues
Property taxes $220,998
$196 867 $131,829 $328,696 233,087
S ecial assessments
P
Intergovenmental revenue 58,410
Investment eamings $8,259 $6,335 217,891 28,200 1,191 261,876 332,322
Total Revenues 8,259 6,335 217,891 225,067 133,020 590,572 844,817
Exnenditures
Principal $145,000 185,000 350,000 100,000 780,000 1,710,000
Irnerest 164,071 380,698 304,250 219,623 11,913 1,080,555 1,186,585
Fiscal agent fees 400 536 400 300 1,636 1,685
Total E�enditures 309,471 566,234 654,650 219,623 111,913 300 1,862,191 2,898,270
Excess or Deficiency of Revenues
Over Expenditures (309,471) (557,975) (648,315) (1,732) 113,154 132,720 (1,271,619) (2,053,453)
Other Financina Sources or Uses l-�
Proceeds from sale of bonds 3,533 3,533 0
Operating transfers in 309,471 600,000 650,000 1,559,471 1,746,580
Operating transfers out 0 (240,000)
Total Other Financing Sources or Uses 309,471 600,000 650,000 3,533 1,563,004 1,506,580
Excess or Deficiency of Revenues and
Other Sources over Expenditures
and Other Uses 0 42,025 1,685 (1,732) 113,154 136,253 291,385 (546,873)
Fund Balances January 1 0 565,369 633,551 4,184,451 463,348 0 5,846,719 7,279,029
Equity T�ansfer In (Out) (450,000) (450,000) (885,437)
Fund Balances December 31 $0 $607,394 $635,236 $4,182,719 $126,502 $136,253 $5,688,104 $5,846,719
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS FUNDS
i The Capital Projects Funds are established to account for all
resources used for the construction or acquisition of capital
facilities b the Cit exce t those financed b Enter rise Funds.
Y Y P Y P
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:
Capital Improvements Fund: This Fund was established in 1968 to
provide funds, and to account for the expenditure of such funds, for
major capital outlays including, but not be limited to, construction
or acquisition of major permanent facilities having a relatively long
life; and/or to reduce debt incurred for capital outlays. The
financing sources of the Fund include ad valorem taxation, transfers
from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
Municibal State Aid for Construction Fund: This Fund was established
i to account for the state allotment of gasoline tax collections used
for transportation related construction projects.
Sbecial 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 Redevelonment Authoritv Fund IH.R.A.): This fund has
authority to levy an ad valorem property tax for the purpose of
conducting housing and redevelopment projects. These projects are now
done in the E.D.A. Fund and all tax proceeds are transferred to that
fund.
Economic 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.
I
-66-
City of Brooklyn Center D-1
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1994
Municipal
State Aid Special Economic
Capital for Assessment Development Totals
Improvements Construction Construction Authority
Fund Fund Fund Fund 1994 1993
ASSETS
Cash and investments $4,735,988 $2,185,206 $294,153 $812,849 $8,028,196 $7,976,715
Temporary improvement notes 985,503 454,716 377,232 1,817,451 1,598,423
Accounts Receivable 67,698 1,494 69,192 15,202
Taxes receivable 9,648 9,648 7,162
Special assessments:
Deferred 1,018,095 1,018,095 997,804
Delinquent 46,181 46,181 31,423
Due from other funds 37,250 65,816 103,066 147,584
Due from other governments 1,968,764 1,968,764 1,644,536
fntertund loans:
Municipal liquor 158,984 158,984 179,944
Golf course 1,150,000 1,150,000 1,080,000
Earle Brown T.I.F. District 593,069 593,069 593,069
Restricted investments 1,000,000 1,000,000 1,000,000
TOTA� ASSETS $7,030,475 $5,239,005 $1,426,127 $2,2 67,039 $15,962,646 $15,271,862
LIABILITIES AND FUND BALANCES (DEFICITSI
Liabilities
Accounts payable $41,577 $6,836 $3,925 $19,920 $72,258 $62,622
Contracts payable 86,450 41,035 127,485
Due to other governments 548
Due to other funds 37,250 37,250
Accrued salaries and wages 770 319 841 2,655 4,585 2,400
Accrued vacation and sick pay 18,640 18,640 17,519
Temporary improvement notes 1,107,541 1,107,541 1,036,659
Deferred revenue 1,968,764 1,064,276 9,648 3,042,688 2,655,925
Total Liabilities 128,797 2,016,954 2,213,833 50,863 4,410,447 3,775,673
Fund Balances fDeficitsl
Reserved:
Unexpended appropriations 223,951 223,951 679,551
Dedicated housing account 1,000,000 1,000,000 1,00O,OOQ
Advances to other funds 1,308,984 593,069 1,902,053 1,853,013
Unreserved 5,368,743 2,628,982 (787,706) 1,216,176 8,426,195 7,963,625
Total Fund Balances (Deficits) 6,901,678 3,222,051 (787,706) 2,216,176 11,552,199 11,496,189
TOTAL LIABILITIES AND
2 267,039 $15,962,646 $15,271,862
FUND BALANCES (DEFICITS) $7,030,475 $5,239,005 $1,426,127
-67-
CitY of B►ooldYn CeMe►' D-2
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1994
Municipal Housing
State Aid Special and Economic
Capital for Assessment Redevelop Devebpmerrt
ImprovemeMs Construction Construction Fund Authority Totals
Fund Fund Fund Authority Fund 1984 1993
Revenues
Property taues 5115,104 s123,443 5238,547 $262,432
Special assessmeMs 5252,510 252,510 322,072
IMergovemmental 5488.957 17,835 305,306 812,098 213,458
InvestmeM eamings 5429,653 151,699 16,912 96,226 694,490 746,920
Miscellaneous 1.045 26.786 27.831 699.144
Totai Revenues 430,698 640,656 269,422 132,939 551,761 2.025,476 2,244,026
Emenditures
Personal services 29,134 28,6:i1 148,762 151,491 358,018 152,008
Supplies 259 12 2,000 932 3,203 14,363
Services and other charges 143,415 58,558 86,110 362,609 651,692 770,330
Capital outlays 433,451 246,122 555,408 214,707 1,449,688 2.188,642
Interest 109.116 16 109.132 113,781
Total Expe�dkures 606,259 334,323 901,396 729,755 2,571,733 3,239,124
Excess or Deficiency of Revenues
Over Expendkures (175,561) 306,333 (631,974) 132,939 (177,994) (546,25'n (995,098)
Other Financina Sources or Uses(-)
Proceeeds from sale of bonds 824,980 g2q,ggp
Operatiny trensfers in 226,744 787,775 1,014,519 395,221
Operating transfers out (470,000) (399.471) (226.744) (132.939) (1.229.154) (536,020)
Total Other Financing Sources or Uses(-) (470,000) (172.72� 598.236 (132,939) 787,775 610,345 (140,799)
Excess or Deficiency of Revenues and Other
Financing Sources Over Expend'Rures and
Other Financing tJses (645,561) 133,606 (33,738) 0 609,781 134,088 (1,135,89�
Fund Balance (Deficits) January 1 7,547,239 3,088,445 (153,968) 1,614,473 11,496,189 12,632,086
Equity Transfers In (Out) (8,078) (8,078)
Fund Balance (DeficRs) December 31 56,901,678 53,222,051 (5787.706) SO 52.216.176 511.552,199 $11,496,189
-68-
City of Brooklyn Center S-3
Capital Improvements Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnina to December 31. 1994
Project Over(-) Under
1994 to Date Expended
Type of Project Appropriations Exqenditures Expenditures Approqriations
Fire training facility $70,000 $0 $50,000 $20,000
Central garage improvements 1,128,716 476,498 498,811 629,905
Replat I-94 property 33,000 2,020 38,561 (5,561)
Hockey field lights 14,400 15,030 15,030 (630)
Interim city hall remodelling 440,000 24,454 24,454 415,546
Pedestrian bridge repair 84,470 1,717 1,717 82,753
Park playground equipment 176,836 84,151 84,151 92,685
ADA curb removals 63,170 2,389 2,389 60,781
Totals $2,010,592 606 259
715 113
$1,295,479
I
i
City of Brookl�n Center S
Municipal State Aid Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beqinnin4 to December 31. 1994
Project Over(-) Under
1994 to Date Expended
Project Appropriation Expenditures Expenditures Appropriations
Humboldt Avenue impFOVements 5,200 25,113 31,919 (26,719)
69th Avenue soil correction 997,737 3,688 966,291 31,446
69th Avenue reconstruction 585,328 (93,064) 539,751 45,577
69th Avenue landscaping, phase I 315,8�0 11,490 267,243 48,627
69th Avenue landscaping, phase II 70,523 55,124 55,124 15,399
Pavement management program 30,070 12,317 34,056 (3,986)
Shingle Creek Parkway overlay 282,827 310,205 310,205 (27,378)
o Misc. sidewalk replacement 14,700 820 820 13,880
69th Ave. Shingle Cr. Pkwy. bridge replacement 1,802 1,802 (1,802) i
Brooklyn Boulevard street improvement 230,745 6,828 6,828 223,917
Totals $2,533,000 $334,323 $2,214,U39 $318,961
I
City of Brooklyn Center S-5
Special Assessment Construction Fund
PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beainnina to December 31. 1994
Project Over(-) Under
1994 to Date Expended
Type of Proiect Appropriations Expenditures Expenditures Appropriations
69th Ave reconstruction $2,486,162 ($37,250) $2,493,687 ($7,525) j
James, Knox 54th Ave. street improvements 230,686 232,597 232,612 (1,926)
57th Ave. street improvements 4,574 4,574 (4,574)
Humboldt Avenue street improvements 13,075 13,075 (13,075)
73rd Avenue street improvements 2,489 2,489 (2,489)
Northwest area street improvements 595,346 594,979 602,396 (7,050) I
Woodbine neighborhood street improvements 16,432 16,432 (16,432)
Totals $3,312,194 $826,896 $3,365,265 ($53,071)
City of Brooklyn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were established to account for the financing of
self supporting activities of the City which render services on a user
charge basis to the general public.
i 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 individuaZly. Several of the barns have been
restored as unique office settings which have found a niche in the
market.
Recvclina and Refuse Fund: This fund accounts for the operation of
a state mandated recycling program. Exp'ansion into refuse collection
will take place only when there is a clear advantage to be achieved
by it.
Water Utilities Fund: This Fund accounts for the provision of water
to customers. Administration, wells, water storage, and distribution
are included.
Sanitarv Sewer Fund:� This Fund accounts for the collection and pumping
of sanitary sewage through a system of sewer lines and lift stations.
Sewage is treated by the Metropolitan 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.
-72-
City of Brooklyn Cerrter E_1
Errterprise Funds (Continued ne� page)
COMBINING BALANCE SHEET
December 31, 1994
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center 8� Refuse Utility Sewer Drainage Totals
ASSETS Fund Fund Fund Fund Fund Fund Fund 1994 1993
Curcent Assets i
Cash and cash equivalents $44,488 $3,329 $237,617 a71,621 $1,055,146 $3,119,193 a390,943 $4,922,337 $4,L�10,827
Accounts receivable net 2,112 194,939 7,302 65,150 126,061 39,842 435,406 491,886
Accrued revenue 27,354 17I,412 279,306 106,260 535,332 523,857
Special assessments receivable:
Deferred 60,955 931 61,886 86,288
Delinquerrt 3,590 3,590 3,860
Due from other govemments 190,751 749,340 94Q,091 164,721
Inventories 284,034 6,562 20,909 17,070 328,575 319,790
w Prepaid expenses 2,902 28,479 111,776 143,157 153,342
TotalCurrentAssets 333,536 9,891 481,944 106,277 1,324,323 3,828,018 1,286,385 7,370,374 6,554,571
Restricted Assets
Temporary cash investrnetrts 3,700,000 300,000 4,000,000 4,000,000
Revenue bond construction account
Due from oUier govemmerrts 473,344 473,344
Total Restricted Assets 3,700,000 300,000 473,344 4,473,344 4,000,000
Faed Assets
Mains and lines 8,583,770 s,152,994 1,234,787 15,971,551 14,113,366
SVuctures 327,595 30:i,321 9,532,145 4,249,575 1,707,080 16,119,716 15,949,897
Equipmerrt 127,897 35,390 984,071 65,034 36,986 6,736 1,256,114 1,685,236
Land 107.405 1,391,711 925,000 23,938 3,388 287,156 2,738,600 2,738,600
Land improvements 6,719 75,662 2,600 84,981 37,556
569,616 1,806,084 11,441,216 12,924,917, 7,900,448 1,528,681 36,170,962 34,524,655
Less: Allowance for depreciation 227,077 97,273 1,476,320 4,092,009 2,309,435 1,317 8,203,431 7,763.063
7otal Fixed Assets 342,539 1,708,811 9,964,896 8,832,908 5,591,013 1,527,364 27,967,531 26,761,592
TOTALS $676,075 31,718,702 �10,446,840 3106,277 313,857,231 a9,719,031 $3,287,093 a39,811,249 �37,316,163
i
ri r■� rrr r� r +i■� r■�
E-4
(Continued from
E. Brown prior page)
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center 8 Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1994 1993
LIABILITIES AND FUND EQUITY
Current Liabilities
Acxounts payable 3108,813 $5,306 a142,922 $565 $40,240 $71,775 314,006 $383,627 $404,212
Accrued salaries payable 5,808 653 18,409 6,125 1,082 244 32,321 45,173
Accrued vacation and sick pay 23,695 420 11,447 12,837 48,399 43,960
Accrued irrterest payable 37,760 37,760
Temporary improvement note 389,205 389,205 305,479
Currer�t portion of long-term debt 72,812 22,812 20,959
Total CurreM Liabilities 161,128 6,379 561,983 565 59,202 72,857 52,010 914,124 819,783
i Currerrt Liabilfies �avable from
Resticted Assets
AcxouMs Payable 54,710 54,710
Lona-Term Liabilities
Bonds payable 1,830,000 1,830,000
Construction ban 136,172 1,150,000 1,286,172 1,238,985
Total Long-term Liabilities 136,172 1,150,000 1,830,000 3,116,172 1,238,985
Fund Ea�
Contributions 636,886 9,884,838 4,997,510 5,6'68,426 21,187,660 21,581,512
Re�ined �mings (Deficits)
Reserved:
Debt Service 90,625 90,625
Special assessmerrts 64,545 931 65,476 90,148
Plarrt expansion 3,700,000 300,000 4,000,000 4,000,000
Unreserved 378,775 (74,563) 19 105,712 5,035,974 3,676,817 1,259,748 10,382,482 9,585,735
Total Re�ined Eamings (Deficits) 378,775 (74,563) 19 105,712 8,800,519 3,977,748 1,350,373 14,538,583 13,675,883
Total Fund Equity 378,775 562,323 9,884,857 105,712 13,798,029 9,646,174 1,350,373 35,726,243 35,257,395
TOTALS 3676,075 a1,718,702 a10,446,840 a106,277 513,857,231 59,719,031 a3,287,093 339,811,249 a37,316,163
I
City of Brooklyn Center E_2
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Oneratina Revenues Fund Fund Fund Fund Fund Fund Fund 1994 1993
Sales and userfees $2,698,373 $302,050 $2,248,111 $134,740 $1,053,689 $2,126,822 $685,011 $9,248,796 $8,417,244
Cost of sales 2,023,603 34,550 355,270 2,413,423 2,244,689
Net Operating Revenues 674,770 267,500 1,892,841 134,740 1,053,689 2,126,822 685,011 6,835,373 6,172,555
i
v O�eratina Exnenses
v Personal services 369,660 124,681 1,144,161 319,984 185,622 102,491 2,246,599 1,999,204
Supplies 8,551 20,713 150,743 554 79,614 18,330 3,178 281,683 234,704
Other services 61,755 46,761 478,017 117,447 160,136 1,454,327 96,228 2,414,671 2,221,486
Insurance 13,318 7,987 41,202 871 12,277 19,312 2,100 97,067 71,671
Utiliti� 22,234 11,079 141,510 148,962 19,892 343,677 307,402
Rent 35,410 34,448 69,858 69,772
Depreciation 15,717 13,659 343,328 236,850 110,855 888 721,297 795,527
Total Operating Expenses 526,645 224,880 2,333,409 118,872 957,823 1,808,338 204,885 6,174,852 5,699,766
Operating lncome (Loss) $148,125 $42,620 ($440,568) $15,868 $95,866 $318,484 $480,126 $660,521 $472,789
r� r r�t r r� r� r r �■r
E
(Continued from
rior a e
P P 9
E. Brown
Municipal Golf Heritage Recyciing Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1994 1993
Nonooeratina Revenues or Expenses(-)
Investment eamings $4,036 $5,137 $266,561 $202,997 $39,930 $518,661 $519,933 I
Special assessments:
Service hookups delinquencies 16,177 599 16,776 30,407
Otherrevenue 650 1,431 72 2,153 2,036
Gain (loss) on disposal of fixed assets 716 ($10,952) ($105) (5,063) 11,291 (7,428) (11,541)
Interest and fiscal agent fees (14,491) (56,065) (22,701) (30,208) (123,465) (84,491)
V
Nonoperating Totals (9,089) (67,017) (22,806) 5,137 279,106 214,959 2,294 402,584 467,885
Income Before Operating Transfers 139,036 (24,397) (463,374) 21,005 374,972 533,443 482,420 1,063,105 940,674
Operating Transfers In 124,842 124,842 84,810
Operating Transfers Out (100,000) (100,000) (100,000)
Net Income (Loss) 39,036 (24,397) (338,532) 21,005 374,972 533,443 482,420 1,087,947 925,484
Depreciation on contributed assets
that reduces contributed capital 338,532 338,532 343,228
I
Retained ar
E rnngs Jan. 1 354,288 4,856 19 84,707 8,572,569 3,663,133 996,311 13,675,883 12,407,171
Equity Transfer from Contributed Capital 55,320 55,320
Equity Transfer In (Out) (14,549) (110,342) (147,022) (218,828) (128,358) (619,099)
Retained Earnings December 31 $378,775 ($74,563) $19 $105,712 $8,800,519 $3,977,748 $1,350,373 $14,538,583 $13,675,883
City of Brooklyn Center E
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1994
E. Brown
Municipal GoIF Heritage Recycling Water Sanitary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Cash flows from operatina activities: Fund Fund Fund Fund Fund Fund Fund 1994 1993
Operating income(loss) $148,125 $42,620 ($440,568) $15,868 $95,866 $318,484 $480,126 $660,521 $472,789
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
De recia6on 15 717 13 659 343 328 236 850 110 855 888 721 297 795 527
P
Changes in assets and liabilfies:
Accounts receivable 1,662 24,429 (10,798) 25,869 7,148 (1,227,347) (1,179,037) (278,177)
Inventories (9,543) (553) 884 427 (8,785) (35,829)
Prepaid expenses (1,579) 8,551 3,213 10,185 (4,754)
Accounts payable 30,410 1,662 (47,709) (7,846) 7,995 (19,073) 68,686 34,125 90,709
Accrued salaries and leave• 2,289 (2,106) (12,201) 3,095 266 244 (8,413) 31,209
Accrued interest payable 37,760 37,760
Other nonoperating income 650 17,608 671 18,929 32,443
Net cash provided by (used for)
operating activities 187,731 55,282 (123,286) (2,776) 387,710 421,564 (639,643) 286,582 1,103,917
Cash flows from noncaoital financina activities:
Proceeds from borrowings on revoNing loan 70,000 83,726 153,726 305,479
Principal repayments on revolving loan (20,960) (20,960) (19,257)
Interest paid on revoNing loan (14,491) .(56,065) (22,701) (93,257) (84,491)
Operating transfers in 124,842 124,842 84,810
Operating transfers out (100,000) (100,000) (100,000)
Net cash provided by (used for)
noncapitalfinancingactivities ($135,451) $13,935 $185,867 $0 $0 $0 $0 $64,351 $186,541
I I
I
E- I I
(Continued from
prior page)
E. Brown
Municipal Golf Heritage Recycling Water Sanftary Storm
Liquor Course Center Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1994 1993
Cash flows from capital and related
financina activities:
Proceedsfrom bondsale $1,830,000 $1,830,000
Capital contributions $49,850
Equitytransferto Central Garage Fund ($4,334) {$69,057) ($65,524) ($184,509) (79,487) (402,911)
Acquisition and construction of
capital assets (51,384) (45,455) ($51,838) (576,809) (297,606) (1,131,873) (2,154,965) (1,250,812)
Interest paid on revenue bonds, (30,208) (30,208)
Net cash provided by (used for) capital
and related financing activities (55,718) (114,512) (51,838) 0 (642,333) (482,115) 588,432 (758,084) (1,200,962)
Cash flows from investina activities:
Interest on investments 4,036 $5,137 266,561 202,997 39,930 518,661 519,933
Net cash provided by investing
activfies 4,036 0 0 5,137 266,561 202,997 39,930 518,661 519,933
Net increase (decrease) in cash and
cash equivalents 598 (45,295) 10,743 2,361 11,938 142,446 (11,281) 111,510 609,429
Cash and cash equivalents at
beginningoftheyear 43,890 48,624 226,874 69,260 1,043,208 2,976,747 402,224 4,810,827 4,201,398
Cash and cash equivalents at
endoftheyear $44,488 $3,329 $237,617 $71,621 $1,055,146 $3,119,193 $390,943 $4,922,337 $4,810,827
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Gain (Loss) on disposal of fixed assets ($551) ($105) ($656)
Gain (Loss) resulting from transfer of
fixed assets to the Central Garage Fund 1,267 ($10,952) ($5,063) $11,291 ($7,428) (10,885)
Fixed Assets transferred to Central
Garage Fund, net of depreciation 10,215 41,285 81,498 34,319 48,871 216,188
E-4
City of Brooklyn Center
Municipal Liquor Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993
Sales
Liquor $867,557 $860,914
Wine 265,032 265,333
Beer 1,397,958 1,318,596
Soft drinks 55,944 57,352
Other merchandise 111,882 113,760
Total Sales 2,698,373 2,615,955
Less: Cost of Sales 2,023,603 1,976,173
Net Operating Revenues 674,770 639,782
O�eratina Ex�enses
Personal services 369,660 356,468
Supplies 8,551 6,481
Other services 61,755 51,705
Insurance 13,318 31,534
Utilities 22,234 23,119
Rent 35,410 38,896
Depreciation 15,717 29,044
Total Operating Expenses 526,645 537,247
Operating Income 148,125 102,535
Nonoperatina Revenue or Ex�ensel-)
Investment earnings 4,0$6 3,124
Otherrevenue 650 601
Gain on disposal of fixed assets 716
Interest and fiscal agent fees (14,491) (16,193)
Total Nonoperating (9,089) (12,468)
Operating Transfers to General Fund 100,000 100,000
Net Income (Loss) 39,036 (9,933)
Retained Earnings January 1 354,288 364,221
Equity Transfer In (Out) (14,549)
Retained Eamings December 31 $378,775 $354,288
-79-
E-5
City of Brooklyn Center
Golf Course Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993
O�eratina Revenues
Green fees $232,862 $213,469
Rentals 8,542 7,644
Leagues 10,340 8,219
Golf lessons 10,390 11,101
Concessions 18,237 17,348
Merchandise 18,909 19,918
Pop machine 2,394 1,825
Miscellaneous 376 509
Total Operating Revenues 302,050 280,033
Less: Cost of Sales 34,550 29,352
Net Operating Revenues 267,500 250,681
O�eratin�Expenses
Personal services 124,681 128,636
Supplies 20,713 16,061
Otherservices 46,761 17,801
Insurance 7,987 3,767
Utilities 11,079 8,943
Depreciation 13,659 23,236
Total Operating Expenses 224,880 198,444
O eratin Income 42 620 52,237
P 9
Nonoperatina Revenue or Exaense(-)
Investment earnings 2,332
Loss on disposal of fixed assets (10,952)
Interest and fiscal agent fees (56,065) (54,000)
Total Nonoperating (67,017) (51,668)
j Net Income (Loss) (24,39� 569
Retained Earnings (Deficit) January 1 4,856 4,287
Equity Transfer from Contributed Capital 55,320
Equity Transfer In (Out) (110,342)
Retained Earnings (Deficit) December 31 ($74,563) $4,856
-80-
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, 1994
1994 1993
Oneratina Revenues
Conventions $592,208 $536,118
Catering 1,240,038 946,306
Inn on the Farm 299,539 211,624
Office Rents 116,326 118,045
Total Operating Revenues 2,248,111 1,812,093
Less: Cost of Sales 355,270 239,164
Net Operating Revenues 1,892,841 1,572,929
Operatinq Expenses
Personal services 1,144,161 914,048
Supplies 150,743 128,897
Other services 478,017 423,723
Insurance 41,202 17,220
Utilities 141,510 128,677
Rent 34,448 30,876
Depreciation 343,328 343,228
Total O.perating Expenses 2,333,409 1,986,669
Operating Loss r440,568) (413,740)
Nonoperatina Revenue or ExAense(-�
Loss on disposal of fixed assets (105)
Interest and fiscal agent fees �(22,701) (14,298)
Total Nonoperating (22,806) (14,298)
Operating Transfers In 124,842 84,810
Net Loss (338,532) (343,228)
Depreciation on contributed assets that
reduces contributed capital 338,532 343,228
Retained Eamings January 1 19 19
Retained Earnings December 31 $19 $19
81
E-7
City of Brooklyn Center
Recycling Refuse Fund
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993
Operatina Revenues
Recycling service fees $134,186 $106,196
t Recycling container sales 554 567
Total Operating Revenues 134,740 106,763
Operatinp Expenses
Supplies 554 567
Other services 117,447 103,527
Insurance 871
Total Operating Expenses 118,872 104,094
Operating Income (Loss) 15,868 2,669
Nonoperatina Revenues
Investment earnings 5,137 4,388
Total Nonoperating 5,137 4,388
Net Income 21,005 7,057
Retained Earnings January 1 84,707 77,650
Retained Earnings December 31 $105,712 $84,707
-82-
1
City of Brooklyn Center E-8
Water Utility Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993
OperatinQ Revenues
Service to customers $962,369 $772,401
Sale of ineters 33,140 30,346
Penalties 58,180 45,387
Total Operating Revenues 1,053,689 848,134
�eratina Expenses
Personal services 319,984 317,283
Supplies 79,614 68,699
Contractual services 160,136 133,652
Insurance 12,277 10,564
Utilities 148,962 128,901
Depreciation 236,850 267,279
Total Operating Expenses 957,823 926,378
Operating Income (Loss) 95,866 (78,244)
Nonoaeratina Revenues or Exqenses(-)
Investment earnings 266,561 280,860
Special assessments (for hookups delinquencies) 16,177 30,101
Other 1,431 820
Loss on disposal of fixed assets (5,063)
Total Nonoperating 279,106 311,781
Net Income 374,972 233,537
Retained Earnings January 1 8,572,569 8,339,032
Equity Transfer 1n (Out) (147,022)
Retained Earnings December 31 $8,800,519 $8,572,569
_83_ i
City of Brooklyn Center E-9
Sanitary Sewer Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993
Oneratina Revenues
Service to customers $2,126,822 $2,114,429
Operatina Exnenses
Personal services 185,622 182,430
Supplies 18,330 13,999
Contractual services 59,066 66,654
Metro Waste Control Commission Charges 1,395,261 1,364,719
Insurance 19,312 8,586
Utilities 19,892 17,762
Depreciation 110,855 126,055
Total Operating Expenses 1,808,338 1,780,205
Operating Income 318,484 334,224
Nononeratinq Revenues
Investment earnings 202,997 201,091
Special assessments (for hookups delinquencies) 599 306
Other 72 615
Gain on disposal of fixed assets 11,291
Total Nonoperating 214,959 202,012
Net Income 533,443 536,236
Retained Earnings January 1 3,663,133 3,126,897
Equity Transfer In (Out) (218,82g�
Retained Earnings December 31 $3,977,748 $3,663,133
-84-
City of Brooklyn Center E-10
Storm Drainage Fund
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
1994 1993 i
Oqeratina Revenues
Service to customers $685,011 $639,837
Total Operating Revenues 685,011 639,837
Operatinq Expenses
Personal services 102,491 100,339
Supplies 3,178
Contractual services 96,228 59,705
Insurance 2,100
Depreciation 888 6,685
Total Operating Expenses 204,885 166,729
Operating Income 480,126 473,108
Nonoperatina Revenues or Exqense(-1
Investment earnings 39,930 28,138
Loss on disposal of fixed assets (7,428)
Interest and fiscal agent fees (30,208)
Total Nonoperating 2,294 28,138
Net Income 482,420 501,246
Retained Earnings January 1 996,311 495,065
Equity Transfer In (Out) (128,358) j
Retained Earnings December 31 $1,350,373 $996,311
-85-
City of Brooklyn Center, Minnesota
INTERNAL S
ERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement
basis, for the financing of goods or services provided lay 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 Emt�lovees Retirement Fund: This fund provides certain health
care insurance benefits for City employees who retire before age 65.
Substantially all of the City's full time employees may_be eligible
for those benefits from the time they qualify for an unreduced PERA
pension until they reach age 65 or become eligible for medicare.
Currently investment earnings are sufficient to provide benefits. In
the event that future costs would exceed earnings, other funds would
be charged for the costs associated with their employees.
Central Garaae Fund: This fund was established to account for the
acquisition and maintenance of all City vehicles and rolling stock
equipment. Vehicle and equipment maintenance, repair, and replacement
will be provided from rental rates which the Central Garage charges
City operating departments for use of the equipment.
-86-
City of Brooklyn Center
Intemal Service Funds
COMBINING BA�ANCE SHEET
December 31, 1994
Em lo ee Central
P Y
Retirement Garage Totals
ASSETS Fund Fund 1994 1993
Current Assets
Cash and cash equivalents $1,029,964 $2,810,537 $3,840,501 $2,698,363
Accounts receivable 2,710 317 3,027
Inventories 17,874 17,874
Total Current Assets 1,032,674 2,828,728 3,861,402 2,698,363
Fixed Assets
Equipment 3,936,720 3,936,720 3,136,597
Less: Allowancefordepreciation 1,982,949 1,982,949. 1,635,437
Total Fixed Assets 1,953,7�1 1,953,771 1,501,160
TOTALASSETS $1,032,674 $4,782,499 $5,815,173 $4,199,523
LIABILITIES AND FUND EQUITY
Current Liabilities
Accounts payable $15,751 $15,751
Accrued salaries payable 3,565 3,565
Accrued vacation and sick pay 21,099 21,099
Accrued health liability $205,876 205,876 $216,544
Total Current Liabilities 205,876 40,415 246,291 216,544
Fund E uit
Contributions:
Transfers from:
General Fund 950,000 950,000 750,000
Debt Service Funds 1,335,437 1,335,437 885,437
Capital Projects Funds 8,078 8,078
Enterprise Funds 588,304 588,304
General Fixed Asset Account Group 1,232,536 1,232,536 1,501,160
TotaC Contributions 4,114,355 4,114,355 3,136,597
Retained Eamings:
Unreserved 826,798 627,729 1,454,527 846,382
Total Fund Equity 826,798 4,742,084 5,568,882 3,982,979
TOTAL LIABILITIES AND FUND EQUITY $1,032,674 $4,782,499 $5,815,173 $4,199,523
-87-
City of Brooklyn Center F-2
intemal Service Funds
COMBINING STATEPAENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1994
Employee Central
Retirement Garage Totals
Fund Fund 1994 1993
Operatina Revenues
Biilings to departments $1,005,914 $1,005,914
Sales 24,498 24,498
Total Operating Revenues 1,030,412 1,030,412
Operatiny Expenses
Personal services $80,598 196,686 277,284 $39,450
Supplies 180,356 180,356
Other services 54,748 54,748 2,000
Insurance 26,037 26,037
Depreciation 318,413 318,413
Total Expenses 80,598 776,240 856,838 41,450
Operating Income (Loss) (80,598) 254,172 173,574 (41,450)
Nono�eratina Revenue or Exaense
Investment Eamings 61,014 100,258 161,272 61,886
Other 499 499
Loss on sale of fixed assets (2,458) (2,458)
Total Nonoperating 61,014 98,299 159,313 61,886
Net Income (Loss) (19,584) 352,471 332,887 20,436
Depreciation on contributed assets that
reduces contributed capital 275,258 275,258
Retained Earnings January 1 846,382 846,382 825,946
Retained Eamings December31 $826,798 $627,729 $1,454,527 $846,382
-88-
City of Brooklyn Center F
Intemal Service Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1994
Employee Central
Retirement Garage Totals
Fund Fund 1994 1993
Cash flows from ooeratina activities:
Operating income (loss) ($80,598) $254,172 $173,574 ($41,450)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
Depreciation 318,413 318,413
Loss on sale of fixed assets 2,458 2,458
Changes in assets and liabilities:
Accounts receivable (2,710) (31 (3,02�
Inventories (17,874) (17,874)
Accounts payable 15,751 15,751
Accrued salaries and leave 24,664 24,664
Accrued health insurance liability (10,668) (10,668) 25,454
Other nonoperating income 499 499
Net cash provided by (used for) operating activities (93,976) 597,766 503,790 (15,996)
Cash flows from canital and related
financina activities:
Capital contributions 1,060,989 1,060,989 1,635,437
Acquisition of fixed assets (583,913) (583,913)
Net cash provided by capital and related
financing activities: 477,076 477,076 1,635,437
Cash flows from investina activities
Interest on investments 61,014 100,258 161,272 61,886
Net cash provided by investing activities 61,014 100,258 161,272 61,886
Net increase (decrease) in cash and cash equivalents (32,962) 1,175,100 1,142,138 1,681,327
Cash and cash equivalents at beginning
of the year 1,062,926 1,635,437 2,698,363 1,017,036
Cash and cash equivalents at end of
the year $1,029,964 $2,810,537 $3,840,501 $2,698,363
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Contribution of fixed assets from other funds $216,188
Fixed Assets transferred to General Fixed Assets
Account Group, net of depreciation 24,161
-89-
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:
Emolovee Deferred Combensation Fund: This fund was established to
account for funds on deposit with the trustees who administer the City
sponsored deferred compensation plan.
r
r
-90-
City of Brooklyn Center G
Employee Deferred Compensation Fund
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 1994
December 31, December 31,
1993 1994
Balance Additions Deductions Balance
ASSETS
Investments for deferred
compensation plans held
by trustees (1) $2,532,735 $263,326 $160,335 $2,635,726
TOTAL ASSETS $2,532,735 $263,326 $160,335 $2,635,726
LIABILITIES
Due to employees for
deferred compensation $2,532,735 $263,326 $160,335 $2,635,726
TOTAL LIABILITIES $2,532,735 $263,326 $160,335 $2,635,726
(1) Investments are reported at market value.
91
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 enterpris�
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.
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City of Brooklyn Center S-6
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1994
January 1, December 31,
1994 1994
Balance Acquisitions Disposals Balance
Investments in General Fix�d Assets
Land $2,369,801 $2,369,801
Buildings and improvements 4,944,348 $472,886 5,417,234
Park improvements 2,953,620 99,181 $13,697 3,039,104
Furniture 995,626 153,000 34,385 1,114,241
Departmental equipment 996,945 74,214 25,730 1,045,429
Total Investments in General
Fixed Assets $12,260,340 $799,281 $73,812 $12,985,809
Sources of Investments
33
Generallndebtedness $1,115,247 $6,714 $1,108,5
General Fund revenues 5,178,647 $180,311 31,178 5,327,780
Liquor store income 169,051 1,017 168,034
Contributions 181,767 24,161 1,094 204,834
Capital projects funds 4,794,929 594,809 28,868 5,360,870
Federal rants 820,699 4,941 815,758
9
Total ources of Investments 12 260 340 799 281 $73 812 $12,985,809
S
Includes $24,161 transfer of fixed assets from the Central Garage Internal Service Fund.
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S-7
Cit of Brookl n Center
Y Y
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1994
Buildings and Park Furniture and
Function Land Improvements Improvements Equipment Total
General govemment $495,501 $495,501
Government buildings $303,770 $4,790,589 $286,845 45,305 5,426,509
Public safety 50,450 1,096,677 1,147,127
Public works 604 185,807 186,411
Recreation 264,995 264,995
Parks 2,066,031 575,591 2,752,259 71,385 5,465,266
Totals $2,369,801 $5,417,234 $3,039,104 $2,159,670 $12,985,809
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S-8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 1994
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 1994 Additions Deductions 1994
General government $404,910 �97,720 $7,129 $495,501
Government buildings 4,939,337 494,142 6,970 5,426,509
Public safety 1,125,368 50,770 29,011 1,147,127
Public works 147,465 38,946 186,411
Recreation 294,481 1,216 30,702 264,995
Parks 5,348,779 116,487 5,465,266
Totals $12,260,340 $799,281 $73,812 $12,985,809
�ity 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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H City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG-TERM DEBT
December 31, 1994 and 1993
December 31,
1994 1993
Amounts Available and to be Provided
Amounts available in Debt Service Funds $5,688,104 $5,846,719
Amounts to be provided:
From future tax levies 747,245
From future tax increments 8,659,651 9,048,281
From future gas #ax allocations 2,605,000 2,750,000
Total Available and to be Provided $17,700,000 $17,645,000
General Lona-Term Debt Pavable
State Aid Street Bonds $2,605,000 $2,750,000
Special Assessment Bonds 1,010,000 275,000
Tax Increment Bonds 14,085,OOQ 14,620,000
Total eneral Lon -Term Debt 17 700,000 $17,645,000
G g
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City of Brooklyn Center 1
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1994
State Aid Special Total Debt
Street Bonds Assessment Bonds Tax Increment Bonds Service Requirements
Year Principal Interest Principal Interest Principal Interest Principal interest
1995 $150,000 $156,325 $85,000 $48,521 $590,000 $871,130 $825,000 $1,075,976
1996 160,000 147,872 115,000 43,608 670,000 831,995 945,000 1,023,475
1997 170,000 138,588 120,000 38,065 1,140,000 777,523 1,430,000 954,176
1998 180,000 128,478 80,000 33,365 1,270,000 705,825 1,530,000 867,668
�o
00 1999 190,000 117,560 80,000 29,605 1,450,000 622,383 1,720,000 769,548
2000 205,000 105,706 85,000 25,560 1,610,000 526,271 1,900,000 657,537
2001 220,000 92,740 85,OU0 21,289 1,810,000 416,806 2,115,000 530,835
2002 230,000 78,788 85,000 16,954 2,005,000 292,282 2,320,000 388,024
2003 245,000 63,821 90,000 12,403 2,115,000 155,820 2,450,000 232,044
2004 265,000 47,496 90,000 7,632 1,425,000 42,750 1,780,000 97,878
2005 285,000 29,616 95,000 2,612 380,000 32,228
2006 3Q5,000 10,141 305,000 10,141
$2,605,000 $1,117,131 $1,010,000 $279,614 $14,085,000 $5,242,785 $17,700,000 $6,639,530
City of Brooklyn Center, Minnesota
I
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
�I municipal government financial�statistics.
j
�1
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City of Brooklyn Center TABLE 1
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)
Last Ten Fiscal Years
Fiscal General Public Public Community Parks and Economic Non- Total
Year Govemment Safety Works Senrices Recreation Development Departmental Expenditures
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 1,549,584 45,294 1,405,020 378,688 7,154,524
1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436
1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109
0 1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571
0
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
1993 1,560,674 3,870,563 1,756,187 41,325 1,999,270 178,703 300,803 9,707,525
1994 $1,692,268 $4,409,490 $1,230,565 $41,495 $2,055,479 $199,982 $312,779 $9,942,058
(1) Funds included in this table are the General Fund.
City of Brooklyn Center TABLE 2
GENERALGOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1)
Last Ten Fiscal Years
General Other
Fiscal Property Licenses Intergovem- Charges for Court Financing Total
Year Taxes 8� Permits mental Services Fines Misc. Sources Revenue
1985 $2,444,153 $387,806 $2,618,957 $979,543 $187,045 $348,316 $311,926 $7,277,746
1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 341,403 7,694,204
1987 2,541,016 345,019 3,060,252 1,114,203 269,903 310,613 166,888 7,807,894
1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306
1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443
1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070
1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990
1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351
1993 5,006,710 300,480 3,T67,214 838,883 140,104 279,211 295,000 10,027,602
1994 $5,703,773 $317,620 $3,353,247 $825,959 $113,573 $241,570 $190,000 $10,745,742
(1) Funds included in this table are the General Fund. I
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
Yea�s Taxes Collected. Year's Taxes Collections Delinquent Taxes as
Year During Fiscal During Fiscal During Fiscal Total as a% of Taxes a% of
Collected Tax LeW(2) Period Period Period Collections Tax LeW Receivable Tax Lew
1985 $2,931,266 $2,657,094 90.65% $178,709 $2,835,803 96.74% $386,209 13.18%
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%
i
1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08°k 84,948 2.42%
0
N
1990 4,092,978 3,857,576 94.25% 12,241 3,869,817 94.55% 221,097 5.40%
1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35°k
1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92%
1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45%
1994 $5,857,342 $5,634,255 96.19% ($176,148) $5,458,107 93.18% $246,311 4.21°k
(1) Funds included in this table are the General Fund, Certificates of Indebtedness, Park Bonds, H.R.A., and E.D.A..
(2) Includes property taxes only; lodging tax and tax increments are excluded.
City of Brooklyn Center TABLE 4
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABIE PROPERTY (1)
Last Ten Fiscal Years
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994(4)
Population 30,630 30,267 29,759 29,420 28,578 28,810 28,887 28,558 28,533 28,533
Real Property
Assessed value (2): Tax Tax(3) Tax Tax Tax Tax
C�, CaP��' �aPa��Y �P��Y Capacity Capacity Capacity
Residerdial 581,072,128 $90,912,548 591,929,2I6 590,162,927 517,834,805 510,133,274 59,730,898 59,193,012 59,077,238 $9,110,096
Non-residential 126,444,994 125,109,658 739,433,999 154,031,355 19,707,624 16,785,832 16,305,868 16,013,701 14,654,123 13,665,143
Area-wide allocation (2,134,213) (2,097,533) (1,345,864) (8,148,681) (977,841) (1,365,235) (1,384,936) (7,550,097) (1,533,767) (954,616)
205,382,909 213,924,673 230,017,381 236,045,601 30,564,588 24,953,871 24,651,830 23,656,676 22,197,594 21,820,623
LessTa�clncrementDistrict 742,474 4,057,611 5,437,588 9,784,473 2,097,505 1,540,518 1,315,724 7,374,157 1,184,328 1,165,933
Tofal assessed velue 204,640,435 209,867,062 724,579,793 226,267,128 28,467,083 23,413,353 23,336,106 72,282,459 21,013,266 20,�4,690
1
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EstimatedMarketValue 788,107,800 813,377,800 854,846,550 910,336,3U0 930,463,900 1,000,269,000 1,076,754,000 1,015,968,800 978,404,700 959,668,700
O
W
Personal Property
p��l� 4,276,721 4,291,916 4,296,001 4,510,313 190,299 530,526 539,121 543,237 549,751 622,500
Estimatedmarketvalue 9,944,700 9,981,200 9.990,700 10,489,100 3,627,500 10 10,564,700 11,349,900 11,957,700 73,532,600
TMaI Ta�ble Property
q���l� 5208,916,656 $214,158,978 5228,875,794 5230,771,441 528,657,382 523,943,879 523,875,227 522,825,696 521563,077 521277,190
I Estimatedmarketvalue 5798,052,500 5823,359,000 5864,837,250 5920,825,400 5954,091,400 51,010,879,520 57,027,318,700 51,012,179,300 5990355,200 3973201,300
Assessed Yalue a perceM of
EstimatedMerlatValue 28.18% 26.01% 28.4&96 25.08% 3.00% 2.37% 2.32% 2.28% 2.76% 2.19%
Per Capita Valuations
Assessed Value 56,827 57,076 57,691 57,844 $1,003 5831 5827 $799 5756 5746
Estimated MarketVaiue 526�056 $27,Z03 529,067 531,299 533,386 535,088 535,563 535�403 534,709 534,108
I
(1) Source: Ciry of &ooldyn CeMer Assessing DepartmeM i�
(2) The Minnesota Legislature changed d�e PropeAY �c system for taxes payable in 1989. The tau bese of properlY wes changed from assessed values to tax capacity values.
(3) The reduction in residential values is due to a change in the state mandated fortnula from gross tax capacily to net ta�c capacitY.
(4) The 1994 population estimate was not available. The 1993 population estimate was used.
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City of Brooklyn Center TABLE 5
DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES (1)
Last Ten Fiscal Years
TAX RATES IN MILLS (2j Hennepin
School Districts County Total Citv School. and (:�i��y
Year Vo-Tech No.286 No.279 No.281 No.11 Special No.286 No.279 No.281 No.11
Collectible City (3) School Earl Brown Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka
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 1223 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.�08 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466
1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335
1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143
0 1994 27.030 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439
TAX LEVIES IN DOLLAR School Districts Hennepin
y County Total City,
Year Vo-Tech No.286 No.279 No.281 No.11 Special Schools,
Collectible City (3) School Earl Brown Osseo Robbinsdale Anoka Districts and County
1985 $2,931,266 $310,394 $3,442,445 $3,014,744 $3,187,821 $1,286,533 $7,207,150 $21,380,353
1986 2,886,824 327,794 3,776,253 3,194,101 3,476,104 1,329,107 7,593,315 22,583,498
1987 3, 396, 789 293,194 3, 900, 388 3, 409, 323 3, 726, 934 1, 327, 348 8, 088, 560 24,142, 536
1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559
1989 3,505,850 293,205 4,059,518 3,770,603 3,791,546 2,179,665 8,776,213 26,376,600
1990 4, 092, 978 244, 258 3, 718,102 3,171, 054 4, 028, 724 1, 099, 641 8, 052, 590 24, 407, 347
1991 4,670,606 234,927 4,169,240 3,266,615 4,365,729 1,207,395 8,992,605 26,907,117
1992 5,072,385 123,029 4,596,776 3,516,409 4,444,416 1,293,144 8,344,678 27,390,837
1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332
1994 $5,857,342 $166,681 $4,175,027 $3,472,013 $4,526,288 $1,287,264 $9,384,582 $28,869,197
(1) Sources: City of Brooklyn Center Assessing Department and Hennepin County Department of Property Tax Public Records.
(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.
City of Brooklyn Center TABLE 6
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Last Ten Fiscai Years
Percent
Current Collections Total
Special Percent Collection Collections
Year Assessment of of Prior Total to Current
Collected Billinqs Amount Billin�s Years Collections Levy
1985 $715,185 $698,756 97.70% $84,781 $783,537 109.56%
1986 631,296 631,165 99.98% 11, 953 643,118 101.87%
1987 572,851 552,168 96.39% 3,139 555,307 96.94%
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%
1993 488,163 469, 814 96.24% 21,188 491, 002 100.58%
1994 $466,784 $444,670 95.26% $7,592 $452,262 96.89%
City of Brooklyn Center TABLE 7
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA
Last Ten Fiscal Years
Less: Ratio of Net Net
Gross Amounts Net Bonded Debt Bonded
Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per
Year Population Value Debt (1) Service Fund Debt Values Capita
1985 30,630 $208,916,656 $2,290,000 $846,014 $1,443,986 0.69% 47.14
1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49
1987 29,759 228,875,794 1,740,000 683,294 1,056,706 0.46% 35.51
1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41
Less: Ratio of Net Net
Tax Gross Amounts Net Bonded Debt to Bonded
Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per
Year Population Value Debt (1) Service Fund Debt Value Capita
1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92
1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40
1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29
1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79)
1993 28,533 21,563,017 0.00°k
1994 (2) 28,533 $21,277,190 $0 $0 $0 0.00% $0
(1) Includes only bonded debt supported by property taxes.
(2) 1993 population estimate.
City of Brooklyn Center Table 8
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1994
i Market Value $973,201,300
Debt limit, 2% of market value 19,464,026
Total bonded debt 19,530,000
Deductions (See Note 5):
A. Bonds:
1. S ecial Assessment Bonds 1,010,000
P
2. State Aid Street Bonds 2,605,000
3. Tax Increment Bonds 14,085,000
4. Utility Revenue Bonds 1,830,000
Total Deductions 19,530,000
Total Debt Applicable to Debt Limit
19 464 026
Legal Debt Margin, December 31, 1994
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10 7
City of Brooklyn Center TABLE 9
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1994
City's Share
Govemmental Unit Gross Debt Sinking Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $0 $0 $0 100.0% $0
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 0 0 0 10.1 0
No.11 Anoka 120,142,792 38,636,744 81,506,048 5.9% 4,808,857
No.279 Osseo 172,820,000 51,445,437 121,374,563 6.9% 8,374,845
No. 286 Earl Brown 4,875,000 0 4,875,000 100.0% 4,875,000
Metropolitan Transit 1,400,000 593,000 807,000 1.1% 8,877
Metropolitan Council (2) 87,860,000 41,638,716 46,221,284 1.0% 462,213
o Hennepin County 67,780,000 5,565,489 62,214,511 2.1% 1,306,505
°D Hennepin County Park Reserve District 16,875,000 1,459,316 15,415,684 2.9% 447,055
Total Overla�nina Debt 471,752,792 139,338,702 332,414,090 20,283,351
Total Dired and Overlapping Debt $471,752,792 $139,338,702 $332,414,090 $20,283,351
(1) Includes onty general obligation debt which is being repaid through property taxes.
(2) The Metropolitan Council also has outstanding $291,645,000 of general obligation sanitary sewer bonds
and loans which are supported by system revenues.
Direct Overlapping
Comnarative Net Debt Ratios Charaeable to Citv Total Debt Debt
Debt to tax capacity value $21,277,190 95.33% 0.00% 95.33°�
Debt to market value $973,201,300 2.08°� 0.00% 2.08%
Per capita debt, population 28,533 $710.87 $0.00 $710.87
TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDE� DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
Debt Service
Total (1) Total (2) as a Percent
Debt General of General
Year Principal Interest Service Expenditures Expenditures
1985 $255, 000 $251, 095 $506, 095 $6, 828, 073 7. 41
1986 275 000 507, 558 782, 558 7,154, 524 10.94%
1987(3) 2,475,000 930,252 3,405,252 7,649,436 44.52%
1988 640, 000 682, 561 1, 322, 561 8, 502,109 15. 56%
1989 635, 000 626, 068 1, 261, 068 9, 062, 571 13.92%
1990 530, 000 585, 992 1,115, 992 9, 434, 517 11.83%
1991 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%
1993 1, 710, 000 1,186, 585 2, 896, 585 9, 707, 525 29.84%
1994 $780, 000 $1, 080, 555 $1, 860, 555 $9, 942, 058 18. 71
1 For ears 1984 through 1986, General Obligation Bonds and G.O.
O Y
Tax Increment Bonds are included. From 1987 onward, Improvement
Bonds, formerly Special Assessment Bonds, are also included.
From 1991 onward, Certificates of Indebtedness are inc�uded.
(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.
109
City of Brooklyn Center TABLE 11
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
Ratio of
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service
Water Utilitv Fund
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
1987 556,222 412,653 968,875 489,374 479,501 45,000 10,786 55,786 8.595 :1
1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1
1989 687,9�2 425,030 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
0 1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48,695 8.147 :1
1992 896,857 316,551 1,213,408 762,405 451,003 45,000 1,940 46,940 9.608 :1
1993 848,134 311,781 1,159,915 659,099 500,816 0 0 0 N/A
1994 $1,053,689 $284,169 $1,337,858 5720,973 $616,885 $0 $0 $0 N/A
Storm Drainaae Fund (2)
1991 $374,040 $2,&28 $376,668 $164,767 $211,901 $0 $0 $0 N/A
1992 494,456 14,030 508,486 207,427 301,059 0 0 0 N/A
1993 639,837 28,138 667,975 160,044 507,931 0 0 0 N/A
1994 $685,011 $39,930 $724,941 $211,425 $513,516 $0 $30,208 $30,208 17.00 :1 I
(1) Excludes depreciation and interest on bonds.
(2) The Storm Drainage Fund was established in 1991.
City of Brooklyn Center TABLE 12
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last Ten Fiscal Years
Commercial Residential
Constnaction (1) Construction (1) Property Value (2)
Bank
Year Value Units Value Commercial Residential Non-Taxable Deposits(3)
1985 $29,553,108 14 $827,700 $201,274,889 $586,929,400 $62,287,088 N/A
1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 N/A
1987 7,220,527 9 885,202 246,784,100 608,890,900 92,384,868 N/A
1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A
1989 7,288,205 4 278,138 321,452,800 678,898,700 83,719,768 $219,077,986
1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488
1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156
1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 199,800,971
1993 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700 200,539,494
1994 $5,504,477 9 $587,000 $301,702,300 $671,499,000 $109,600,200 $197,886,000
(1) Construction values were supplied by the City of Brooklyn Center Community Development Department.
(2) Estimated maricet values we�e supplied by the City of Brooklyn Center Assessing Department.
(3) Bank deposits were supplied by the banks.
Cit of Brookl n Center TABLE 13
y v
PRINCIPAL TAXPAYERS
December 31, 1994
Percentag
1994 of Total
Market Market
Taxpayers Type of Business Valuation (1) Value
le o' er 58 908 800 6.05%
S C Ltd Partners Brookda Sh pping Cent
Prudential Insurance Co. Shopping Center/Office Buildings 15,635,700 1.61
Ryan Construction Office Buildings 15,206,300 1.56%
Dayton-Hudson Corp. Department Stores 13,340,900 1.37%
First Industrial Realty Trust Warehouse/Office Buildings 9,105,700 0.94%
Sears Roebeck and Co. Department Store 8,825,900 0.91
Norman Chazin Apartment Buildings 8,219,500 0.84%
Lutheran Brotherhood Office/V1/arehouse 6 704 500 0.69%
NW Raquet Clubs Health Club/Fitness 6,662,500 0.68%
Carson Pirie Scott Department Store 6,232,800 0.64%
Total Market Value $148,842,600 15.29%
TOTAL CITY MARKET VALUE $973,201,300
(1) Market values were supplied by the City of Brooklyn Center Assessing Department.
112
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 1995
Policy Period
Tvpe of Coveraoe and Details From To Liability Limits
I. Statutorv Liabilitv to Em Ip oyees
a. Workers' Compensation 01-01-95 01-01-96 Statutory
(participant in the League of
Minnesota Ci�es 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 01-01-95 01-01-96 $600,000 combined single limit
(2) Properly damage 01-01-95 01-01-96 $600,000 combined single limit
(3) Personaf injury 01-01-95 01-01-96 $600,000 combined single limit
b. Automobile liability,
comprehensive 01-01-95 01-01-96
(1) Bodily injury $600,000 occurrence
(2) Property damage $600,000 occurrence
(3) Uninsured motorist $600,000 occurrence
c. Liquor stores' dram shop 01-01-95 01-01-96 $1,000,000 each common
cause
d. Golf Course and Central Park 04-01-95 10-31-95 $1,000,000 each common
liquor liabil'dy cause
e. Personal accident, Council 01-01-95 01-01-96 $100,000 accidental death
Commissions $400/week short term disability
$1,000 Medical
f. Personal accident, Volunteers 01-01-95 01-01-96 $100,000 accidental death
$400/week short term disability
$1,000 Medical
113
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 1995
Buildings
and
Policy Period Structures Content:
(Replacement (Replacement
Type of Coverage and Details From To Cost) Cost)
III. Insurance on Ciiy Property 01-01-95 01-01-96
a. Public and institutional
property, all risk, blanket
$31,669,900; $1,000 deductible
replacement value on buildings.
(1) Civic Center $7,869,600 $1,047,000
(2) East Fire Station $676,700 $149,000
(3) Municipal Senrice Garage $1,452,000 $536,000
(4) Elevated Water Tov�rers 3 locations $3,628,500 $0
(5} Park Shelter Buildings 17 locations $1,522,000 $55,000
(6) Pump Houses 10 locations $940,000 $110,000
(7) Lift Stations -10 locations $1,093,500 $71,000
(8) Meter Station $17,000 $0
(9) Storage Building $418,500 $0
(10) Outdoor lighting systems 7 locations $316,000 $0
(11) Liquor Store and Fire Station $560,700 $307,800
(12) Humboldt Liquor Store $247,600 $160,000
(13) Leased Liquor Store $49,500 $160,000
(15) Pedestrian Bridge 2 locations $1,120,500 $0
{16) Picnic Shelter $57,000 $0
(17) Earle Brown Heritage Center $7,256,500 $1,421,000
(18) Centerbrook Golf Course Club House $328,600 $22,000
(19) Centerbrook Golf Course Garage $35,900 $2,000
(20) Lions Park Concession Stand $36,000 $3,000
Liability Limits
b. Boiler and machinery 01-01-95 01-01-96 $3,000,000 per accident
c. Automotive physical damage 01-01-95 01-01-96
(1) Comprehensive ACV-$1,OOOdeductible
(2) Collision ACV $1,000 deductible
IV. Crimina! Acis
a. Faithful pertormance blanket position $100,000 per loss
b. Money and securities (broad form) Various
c. Depositor's forgery $100,000
114
i
City of Brooklyn Center TABLE 15
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
School Enroliments (3)
Mpis-St.Paul No. 286
Fiscal Unemployment C.P.I. No.11 No.279 No.281 Earle
Year Population Rate (1) °r6 (2) Anoka Osseo Robbinsdale Brown
1985 30,630 4.5% N/ A 1,032 2,003 567 1,326
1986 30,267 3.9% 1.3% 1,011 1,838 555 1,361
1987 29,759 4.1 3.0% 989 1,674 570 1,376
1988 29,420 3.5% 5.0% 989 1,674 563 1,456
1989 28,578 3.5% 4.1 671 1,674 563 1,652
1990 28,810 3.2% 4.1 642 1,616 540 1,747
1991 28,887 4.6% 2.3% 807 1,680 521 1,327
1992 28,558 4.4% 1.4% 671 1,178 526 1,709
1993 28,533 4.3% 2.7% 691 1,106 540 1,685
1994 (4) 28,533 2.6% 2.7% 661 1,071 577 1,681
(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) 1993 population estimate.
115
TABLE 16
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
December 31, 1994
Date of Incorporation February 14, 1911
Date of Adoption of City Charter November 8, 1966
Date City Charter Effective December 8, 1966
Form of Govemment Council-Manager
Fiscal Year Begins January 1
Area of City 8 1/2 square miles
Miles of Streets:
City 105.69
County 6.49
State 10.79
Miles of Storm Sewers 41.13
Number of Street Lights: Owned by N.S.P 991
Owned by City 73
Building Permits Number Estimated
Issued Cost
1994 607 $13,418,453
1993 520 11,437,250
1992 573 14,286,465
1991 466 8,800,980
1990 504 8,035,605
1989 526 19,217,696
1988 554 10,846,987
1987 573 10,421,724
1986 604 28,594,810
1985 521 32,328,938
City Employees as of December 31, 1994
Regular full-time 141
Temporary or part-time 209
Total 350
Fire Protection:
Number of Stations 2
Number of Full-time Employees 1
Number of Volunteer Firefi hters 29
9
Police Protection:
Number of Stations 1
Number of Full-time Employees 52
Number of Part-time Employees 16
116
City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 1994 prior page)
Parks and R�creation:
Park property totals 522 acres developed to serve a wide variety of
recreational interests. Area include playlots, playgrounds, pla�elds,
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
Municipal Water Plant:
Number of connections 8,880
Average daily consumption in gallons 3,450,712
Peak daily consumption in gallons 7,757,000
Plant capacity gallons per day 17,652,000
Miles of wate� mains 114.582
Number of fire hydrants 837
Number of wells 9
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.86
Municipal Sewer Plant:
Number of connections 8,797
Miles of sanitary sewer 104.98
Daily disposal capacity in gallons 10,938,240
Number of lift stations 10
Residential rate per quarter $42.50
Municipal Liquor Stores (Off-sale):
Number of owned stores 2
Number of leased stores 1
1994 sales $2,698,373
Elections:
Last General Election November 8, 1994
Registered voters 17,593
Votes cast 10,751
Percentage of registered voters voting 61
Last Municipal Election 1994
Registered voters 17,593
Votes cast 10,751
Percentage of registered voters voting 61
117