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HomeMy WebLinkAboutCAFR-1988 COMPREHENSIVE ANNUAL AUDITED FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 1988 I GERALD G. SPLINTER, CITY MANAGER �re�ared by THE DEPARTMENT OF FINANCE Paul W. Holmiund, Director (Member of Government Finance Officers Association of the United States and Canada) B C tv Q� _�Qk1Yn ��Yl�r COMPBEHENSIVE ANNUAL FINANCIAL ��p� .`�g�.0 E�gd p e e e�gr 3,1.� 19 8 8 TABLE �O�ENTS Exhibit Page Number Number I. �1 T.B�A U ��Y �F�T I 0 N Ti tl e Page Table of Contents City Officials 1 Organization Chart 2 City Manager's Letter 3 Finance Director's Letter 4- 12 Certificate of Achievement 13 II. F�1��.I� SECTION Auditors' Report 14 -15 A. General Purpose Financial Statements (Combined Statements Overview): Combined Balance Sheet All Fund Types and Account Groups 1 17 18 Combined Statement of Revenues, Expenditures and Changes in Fund Balances All Governmental Fund Types 2 9 Combined Statement of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) And Actual General and Special Revenue Funds 3 20 Combined Statement of Revenues, Expenses and Changes in Retained Earnings Proprietary 4 21 Fund Type Combined Statement of Changes in Financial Position Proprietary Fund Type 5 22 Notes to Financial Statements 23 -�9 C i t v.� Bx' o o k.lY�1 COMPR�H�NSIVE ANNUAL FINANCIAL �EPORT �jea� Ended Decembe� 1988 TABL� CONTENTS Statement/ Schedule Page Number Number B. Combining and Individual Fund Financial Statements: General Fund: Balance Sheet A-1 51 Statement of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual A-2 52 Schedule of Revenue Other Financing Sources Budget and Actual S-1 53 55 Schedule of Expenditures Compared to Budget S-2 56 61 Special Revenue Funds: Combining Balance Sheet B-1 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual B-2 64 6b Debt Service Funds: Combining Balance Sheet C-1 69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 70 71 Capital Projects Funds: Combining Balance Sheet D-1 73 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D-2 74 Project-Length Schedule of Construction Projects Capital Improvements Fund S-3 75 Project-Length Schedule of Construction Projects Municipal State Aid Construction Fund S-4 76 Citv ,g.� B�ooklvn C��ter ��..p�EH�NSIV� ANNUAL k'INA�iC�A� �POR� Year Ended Decembe� 3,1. 12$$ TAB1� Q� CON�'ENTS Statement/ Schedule Page Number Number Project-Length Schedule of Construction Projects Special Assessment Construction Fund S-5 77 Enterprise Funds: Combining Balance Sheet F-1 79 80 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F-2 81 i Combining Statement of Changes in Financial Position F-3 $2 Statement of Revenues, Expenses, and Changes in Retained Earnings Municipal Liquor Fund F-4 83 Balance Sheet Public Utilities Fund F-5 84 85 Statement of Revenues, Expenses, and Changes in Retained Earnings Public Utilities Fund F 6 86 Schedule of Water Operating Expense S-6 87 Schedule of Sewer Operating Experrse S-7 88 Statement of Revenues, Expenses, and Changes in Retained Earnings Golf Course Fund F-7 89 i C�Y 4� B�" o o�S�.�CY1 �Yl�r COMPR�HENSIVE ANNUAL k'INANCIA� REPORT Yea� �ded Decembe� 3� a98$ TABLE CON�NTS Statement/ Schedule Page Number Number General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets By Sources S-8 91 Schedule of General Fixed Assets By Funetion and Activity S- 92 General Long-Term Debt Account Group: Comparative Schedule of General Long-Term Debt G 94 Summary of Debt Service Requirements to Maturity H 95 III. �TATISTICAL SECTION Ta bl e Nur��,� General Governmental Expenditures and Other Uses 1 97 General Governmental Revenues and Other Financing Sources 2 98 Property Tax Levies and Collections 3 99 Assessed and Market Value of Taxable Property 4 100 Property Tax Rates and Tax Levies All Overlapping Governments 5 101 Special Assessment Collections 6 102 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 103 t C i t v_ o� B� o 01S�y�] C�x1�gr COMPREH�NSIV� ANNUAL FINANCIA� R�PORT Yea� ��ded December 3�1,, 1988 TABL� CON'�I,�S Tabl e Pa e g Number Number Computation of Legal Debt Margin 8 104 Computation of Direct and Overlapping Debt 9 105 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures 10 106 Revenue Bond Coverage 11 107 Property Value and Construction 12 108 Principal Taxpayers 13 109 Insurance Coverage 14 110-111 Schedule of Cash and Temporary Cash Investments 15 112 Miscellaneous Statistics 16 113-115 i 1 1 tY Bx' o o �1Xa _C�n�� C I TY Q�� C��.� i��� Y e a���� D e c e m b er a 9 8 8 E L E C�E� Q�.�' I C I A� Term of Office Term Expires Mayor Dean Nyquist Four Years 12/31/90 Councilman Rich Theis Four Years 12/31/88 Councilman Bill Hawes Four Years 12/31/88 Councilman Gene Lhotka Four Years 12/31/90 Councilwoman Celia Scott Four Years 12/31/90 APPOIN'��D Q��'ICIALS City Manager Gerald G. Splinter Ci ty Cl erk Da rl ene Weeks City Treasurer Paul W. Holmlund City Attorney LeFevere, Lefler, Kennedy, 0'Brien Drawz Department Heads: Finance Paul W. Holmlund Public Works Sy Knapp Police James Lindsay Fire Ronald Boman Planning and Inspection Ronald Warren Recreation Arnold Mavis Assessment Peter Koole Liquor Stores Gerald Olson Personnel Coordinator Geralyn Barone EDA Coordinator Brad Hc�ffman City Engineer Bo Spurrier Public Works Superintendent Richard Ploumen Health Officer Duane Orn, M.D. Fire Marshall Gerald Pedlar Sanitarian Thomas Heenan Civil Defense Coordinator James Lindsay -1- i ORGANIZATION CHART COUNCIL-MANAGER PLAN City of Brooklyn Center, Minnesota y ADVI50RY r i CHARTER COMMISSION Capital Improvement Review Board (appointed by district court) ELECTORATE I ADVISORY Housing Commission J CITY ATTORNEY t r ti r T ADVISORY CITY COUNCIL HRA COORDINATOR Human Riqhts Resources Commission 1 T t ADVISORY parks and Recreation Commission PERSONNEL COORDINATOR L CITY MANAGER ADVISORY CITY CLERK Planning Commission 4 N I DIRECTOR I� Emergency I Prepared- ness r'� r. r T y h .q r DIRECTOR DIRECTOR DIRECTOR CHIEF DIRECTOR CHIEF MANAGER DIRECTOR ASSESSOR Planning of Finance Police of Volunteer Liquor Public Tax and Recreation Department Department Environ- Fire Stores Works Assessment Inspection City mental Department Department Department Department Treasurer Health L L r. �.1 I... .i y L t. I -i t- Golf Recreation Park Government Engineering Street Public Course Proqrams Maintenance Buildings Division Division Utilities and Division Division Division Community Center I I a. t. y r. i 6301 SHINGLE CREEK PARKWAY CITY OF r B ROOKLYN BROOKLYN CENTER, MINNESOTA 55430 TELEPHONE 561-5440 C ENTER EMERGENCY POLICE FIRE r 9„ June 16, 1989 HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL CITY OF BROOKLYN CENTER I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn Center for the fiscal year ended December 31, 1988. Minnesota Statutes and City Charter, Section 7.12, require that the financial statements of the City of Brooklyn Center be audited by the State Auditor or a certified publ ic accountant selected by the City Council. This requirement has been complied with by the engagement of the firm of Deloitte Haskins Sells and their report is included in the financial section of this report. This report has been prepared following the guidelines recommended by the Government Finance Officers Association of the United States and Canada. The Government Finance Officers Association awards Certifi- cates of Achievement for Excellence in Financial Reporting to those governments whose Comprehesive Annual Financial Reports are judged to conform substantially with high standards of public financial report- ing, incl uding general ly accepted accounting principl es promul gated by the Governmental Accounting Standards Board. Our financial reports for the past five years have received this award. It is my bel ief that the accompanying report meets program standards, and it will be submitted to the Government Finance Officers Association for review. Respectfu ly submitted, Geral G Spl inter City anager �,�C�,� p :�a ��������c� 1 -3- 6301 SHINGLE CREEK PARKWAY CITY OF B ROOKLYN BROOKLYN CENTER, MINNESOTA 55430 TELEPHONE 561-5440 C ENTER EMERGENCY POLICE FIRE 911 r June 16, 1989 i Mr. Gerald G. Splinter City Manager City of Brooklyn Center Dear Mr. Splinter: The comprehensive annual financial report of the City of Brooklyn Center for the fiseal year ended December 31, 1988, is hereby submitted. Responsibil ity for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the government. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the gov ernment. Al l di scl osures necessary to enabl e the reader to gain an understanding of the government�s financial activ ities hav e been incl uded. The comprehensive annual financial report is presented in three sec- tions: introductory, financial, and statistical. The introductory section includes this transmittal letter, the government's organiza- tional chart and a list of principal officials. The financial section includes the general purpose financial statements and the combining and individual fund and account group financial statements and schedules, as well as the auditors' report on the financial statements and schedules. The statistical section includes selected financial and demographic information, generally presented on a multiyear basis. The government is required to undergo an annual single audit in comformity with the provisions of the Single Audit Act of 1984 and U.S. Office of Management and Budget Circular A-128, Audits of State and Local Governments. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors' reports on the internal control struc- ture and compliance with applicable laws and regulations, are issued as a separate report. �cF r -4- The City provides the full range of municipal services contemplated by statute or charter. This includes public safety (police and fire), streets, sanitation, health and social services, culture-recreation, public improvements, planning and zoning, and general administrative serv ices. The City al so operates three off-sal e 1 iquor stores and a public water and sewer utility. Net revenue produced in excess of working capital requirements by the municipal liquor stores operations have been used toward financing current expense and capital outlay programs of the General Fund. POR ING ITY �E E��' In accordance with Governmental Accountin Standards Board ronounce- P u all funds account h C' financial statements incl de ments t e it s Y groups, departments, agencies, boards, commissions, and other organi- zations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of gov erning body members, budget rev iew, approv al of property tax levies, outstanding debt secured by City full faith and credit or revenues, and responsibility of funding deficits. As a result of applying this criteria, certain organizations have been included or excluded from the City's financial statements, as follows: INCLUpED: Economic Development Authority in and for the City of Brooklyn Center (EDA). The EDA was created by the City to carry out local programs for assistance to low income citizens for home improvements. Inasmuch as the EDA's governing board is appointed by the City Council, the Council reviews and approves EDA tax levies, the City provides major community development financing for EDA activities, and the City Manager is the Executive Director, the EDA is considered to be a component unit of the City. �XCLU1� The Brooklyn Center Fire Department Relief Association. -5- This association is organized as a non-profit organization by its members to provide pension and other benefits to such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the organization. All funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the association, tax 1 ev ies, if necessary, are determined by the associa- tion and are only reviewed by the City, and the association pay bene- fits directly to its members. Because the association is able to fund its programs independently of the City, it is excluded from reporting ent i ty Independent School District No. 286 (Earle Brown) Independent School District No. 279 (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 27g (Suburban Hennepin County Area Vocational Technical Institute) These districts, like all school districts in Minnesota, are complete- ly independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and prepare and issue 1 their own financial reports. ECONOMIC CONQ��'I01� ,�I OUTLOOK The City is located in the northwestern corner of the Minneapolis-St. Paul metropolitan area. While the rest of the state has experienced poor economic conditions during the 1980's due to declines in the farm and mining economies, the metropolitan area has experienced consistent growth due to its manufacturing and service industries. The outlook is for continued growth in the metropolitan area and some improvement, or at least a halt to the decline, of the farm and mining economies. MAJpR �NITIA�IV�S The City created an Economic Development Authority (EDA) in 1988 which took over all the activities and assets af the Housing and Redevelop- ment Authority (HRA) which had existed up until 1988. Under Minnesota statutes, an EDA has the authority to carry on all of the activities of an HRA, plus the right to operate an enterprise. The major new activity fo the EDA is the restoration of the Earle Brown Farm -6- historical site and its development as a convention center. Total cost of the Earle Brown Farm will be $9,200,000 and it will be open for business in Apri1 1990. The City of Brooklyn Center, along with the City of Fridley and the City of Brooklyn Park, joined to form the North Metro Convention Bureau. Revenues for the Bureau come from a 3� lodging tax on all hotel and motel rooms in the three cities. The Bureau's purpose is to promote conventions, many of which will use the facilities of the Earle Brown Farm. F�l�� C I A� 1�.EQB M_AT_19Jn Management of the government is responsbile for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in comformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Single Audit. As a recipient of federal, state and county financial assistance, the government also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by manangement and the independent auditors. As a part of the government's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance pro- grams, as well as to determine that the government has complied with appl icabl e 1 aws and regul ati ons. The resul ts of the gov ernment's single audit for the fiscal year ended December 31, 1988 provided no instances of material weaknesses in the internal control structure or significant violations of applicable laws and regulations. Budgeting Controls. In addi�ion, the government maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the government's governing body. Activities of the general fund and special revenue funds are included in the annual appropriated budget. Project-length financial plans are adopted for the capital projeets funds. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within an individual fund. The government also maintains an encumbrance accounting system as one technique of accompl ishing budgetary control. Encumbered a- mounts lapse at year end and generally are not reappropriated as part of the following year's budget. I As demonstrated by the statements and schedules included in the finan- cial section of this report, the government continues to meet its responsibility for sound financial management. General Fund Funetions. The following schedule presents a summary of general fund revenues for the fiscal year ended December 31, 1988 and compares them to 1987. Gg�era� Fund Reve�ues �t�r Financ�� ��a,�ce� Increase of (Decrease) 1988 Total 1987 From 1987 Taxes, Ad Valorem 3,318,656 37.3� 2,541,016 777,640 License permits 329,783 3.7� 345,019 (15,236) Intergovernmental revenue 3,078,491 34.6� 3,060,252 18,239 Charges for services 1,215,635 13.7� 1,114,203 101,432 Court fines 243,952 2.8� 269,903 (25,951) Misc revenues 363,918 4.1% 310,613 53,305 Other financing sources 337,871 3.8� 166,888 170,983 TOTAL $8,888,306 100�0� $7,807,8g4 1,080,412 -s- I The large increase in property taxes was caused by three factors; a normal increase in the levy, inclusion for the first time of the lodging tax, and the fact that the 1987 tax revenue had to be depressed by the write off of old receivables. Charges for services benefited from the collection of engineering fees charged to the Capital Projects Funds and the Economic Development Authority for the services of the City's Engineering Department on construction pro- jects. An increase in interest on investments raised miscellaneous revenues. Other financing sources were raised to cover some rnajor capital outlays. The following schedule presents a summary of general fund expenditures for the fiscal year ended December 31, 1988 and compares them to 1987. Gene� F� E�nen�iture� Increase of De crea se 1988 Total ___1987__ From 1987 General Government 1,768,607 20.8% 1,532,185 236,422 Public Safety 2,716,205 32.0°6 2,604,773 111 ,432 Public Works 1,768,918 20.8� 1,552,532 216,386 Community Health Services 69,117 .8� 48,185 20,932 Parks Recreation 1,706,516 20.1� 1,597,901 108,615 Economic Develop- ment 162,271 1.9� 162,271 Non-Departmental 310,475 3.6% 313,860 (3,385) TOTAL $8,502,109 100.0% $7,649,436 $852,673 The significant increase in General Government is primarily due to major capital outlays for buildings. Public Works expenditures were raised by a combination of increased costs for supplies, contractual services and capital outlays. The new category of Economic Develop- ment represents the payment to the North Ntetro Convention Bureau of the proceeds of the 3� lodging tax. -9- G�[�RAL FUND BALANC� The fund balance of the general fund increased by 8� in 1988. The ending balance of $5,657,535 is the equivalent of seven months of expenditures for the 1989 budget. 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. E V�RPRIS� QP�RA�ION� The City's enterprise operations are comprised of three separate and distinctive activities: Liquor stores, the Water and Sewer utility and the Golf Course. The liqour operation is composed of three stores. Two are city owned and the third is leased. In May 1989 a new long-term lease was signed for the third store and it is being remodel ed to improv e v isabil ity and access. The Water and Sewer Utility is largely developed and already reaches all parts of the City. Revenues were increased for both water and sewer by a rate increase which took effect on January 1, 1988. Water sal es were up because of 1 awn sprinkl ing during one of the dryest summers on record. Three fourths of the sewer operating expenses are fees paid to the Metro Waste Control Commission for sewage treatment and those fees increased 13�. Depreciation expense for the water utility increased because large capital outlays made in 1987 were depreciated beginning in 19$$ Emergency repairs to wells also in- flated the water operating expense. Centerbrook Golf Course began operating in 19$$ and while it showed a loss, it did substantially better than had been projeeted. Rounds played were 35 ,000 in 1988 and are projected to 37,000 in 1989 Expectations are for the golf course to be close to breaking even in 1989 and to have profitable years after that. AD� N.�T.��.T�.��1 At December 31, 1988, the City had nine debt issues outstanding. These issues included $1,440,000 of general obligation bonds, $6,060,000 of tax increment debt with gov ernment commitment, $1,220,000 of special assessment debt without government commitment and $180,000 of revenue bonds. The City has a A-1 rating from Moody's Investors Service. Under current state statutes, general obligation bonded debt issuances are subject to a legal limitation based on 7. percent of total assessed value. As of December 31, 1988, the general -10- obl igation bonded debt of $1,440,000 was wel l bel ow the 1 egal limit of $16,406 and debt per capita equalled $23.41. No bonds were issued during the year. CASH �NA�EMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to insure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter 475. The yield on maturing investments ranged from a high of 12.0 percent to a 1 ow of 4.25 percent. Interest earned during 1988 amounted to $2,001,478 compared to $2,018,741 during 1987 All deposits were either insured by federal depository insurances or collateralized. Except when the City has received a tax settlement and can't invest the funds until the next day, the collateral is never exceeded. At year end, aZl deposits were collateralized. Cash balances for all funds of the City are maintained on a combined basis and invested, to the extent possible, in short-term securities. Earnings from securities are allocated to the various funds in propor- tion to their relative cash book balances. �NDEPENDENT AUDI'� The City Charter and State Statutes require the Council to provide for an audit of the financial transactions of the City. Deloitte Haskins and Sell s has been retained for that purpose and their unqual ified opinion has been included in this report. CERTIFICA.� ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for its comprehensive annual financial report for the fiscal year ended December 31 1987 In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily read- able and efficienty organized comprehensiv e annual financial report, -11- whose contents comform to program standards. Such reports must satisfy both general ly accepted accounting principl es and appl icabl e legal requirements. A Cerificate of Achievement is valid for a period of ony year only. We believe our current report continues to comform to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligiblity for another certificate. ACKNOWLE�GEMENTS The preparation of this report on a timely basis could not be accom- plished without the efficient and dedicated services of the entire staff of the Department of Finance. I would like to express my appre- ciation to all members of the Department, with special recognition to Charles Hansen, Assistant Finance Director and Kelly Gooden, Secretary. I would also like to thank the Mayor, Council members and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner, and the independent auditors for their valuable and willing assistance. Respectfully submitted, Q� W Paul W. Holmlund Director of Finance -12- Certif icate of Achievement f or Exce�lence in Financial Aeporting Presented to Cit of Brookl n Center y 1 Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1987 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and pubhc employee rehreme nt systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ����rn� 9 NREDAA7FS o S �,r President �,K.�o Ewecutive Directar Deloitte Haskins�Sells 4300 Norwest Center 90 South Seventh Street Minneapolis, Minnesota 55402-4150 612 344-0200 ITT Telex: 4995620 FAX: (612) 339-6202 INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota: We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota and the combining, individual fund and account group financial statements of the City as of December 31, 1988 and for the year then ended, listed in Section II of the table of contents. These financial statements and the supplemental schedules discussed below are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted suditing standards. 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 sudit provides a reasonable basis for our opinion. In our opinion, such general purpose financial statements present fairly, in all material respects, the financial position of the City of Brooklyn Center, Minnesota at December 31, 1988 and the results of its operations and the changes in financial position of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Also, in our opinion, such combining, individual fund and account group financial statements present fairly, in all material respects, the financial position of each of the individual funds and account groups of the City of Brooklyn Center, Minnesota at December 31, 1988 and the results of operations of such funds and the changes in financial position of individual proprietary funds for the year then ended in conformity with generally accepted accounting principles. f —1a— Our sudit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund and account group financial statements. The accompanying financial information listed as schedules in the foregoing table of contents is presented for purposes of additional analysis and is not a required part of the financial statements. Such supplemental schedules have been subjected to the auditing procedures applied in our audit of the general purpose, combining, individual fund and account group financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the financial statements of each of the respective individual funds and account groups taken as whole. �i �/f ..k�k:d-v�-� P .�r�-rc� May 12, 1989 -15- Cit of Brookl n Center Minn y y esota GENERAL PURPOSE FINANCIAL STATEMENTS The genera 1 purpose financia 1 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. -16- City of Brooklyn Center EXHIBIT 7 All Fund Types and Account Groups COMBINED BALANCE SHEET (Continued next page) December 31, 7988 Proprietary Fiduciary Totals Governmental Fund Types Fund Type Fund Type Account Groups (Memorandum Only) Special Debt Capital General General Long- December 31, General Revenue Service Projects Enterprise Agency Fixed Assets Term Debt 1988 1987 ASSETS Cash and investments (Note 2) S5 843 038 S3 636 404 S3 515 446 S6 952 267 $3 994 569 E23 941 724 E22 211 507 Temporary improvement notes (Note 3) 183,190 112,162 102,744 214,545 246,969 859,610 679,228 Receivables: i Accounts 36,779 3,128 4,540 344,720 389,107 426,947 Delinquent Taxes (Note 1I) 96,438 1,560 7,523 105,521 73,052 Special assessments: Deferred 16,002 1,398,786 761,811 93,599 2,270,198 2,196,684 Delinquent 2,147 44,549 13,402 3,341 63,439 50,525 Due from other funds (Note 12) 253,367 25,000 278,367 70,734 Due from other governments 26,323 253,367 7,466,367 159,918 1,905,975 1,947,855 Inventories and supplies (Note 1G) 39,973 261,736 301,709 314,382 Prepaid expenses 2,162 110,551 112,773 715,658 Interfund advances (Note 12) 72,834 1,957,018 2,029,852 274,419 Restricted investments and other assets 4,127,020 4,127,020 4,128,775 Investments for deferred canpensation plan at market (Note 74) $1,339,628 1,339,628 1,163,921 Property, plant and equipment (Note 4) 18,985,299 574,214,165 33,199,464 32,979,640 Less accumulated depreciation (4,957,998) (4,957,998) (4,669,142) Amount available in Debt Service Funds E3,617,203 3,617,203 3,360,297 I Amount to be provided for General long- 7erm Debt 5,444,758 5,444,758 6,326,192 Total Assets 56,300,677 54,278,137 55,069,048 E11,394,950 523,369,724 E1,339,628 514,214,165 E9,061,961 E75,028,290 E71,650,674 City of Brooklyn Center EXNIBIT 1 All FurxJ Types and Account Groups COMBINED BALANCE SHEET (Contirwed fran prior page) December 31, 1988 Proprietary Fiduciary Totals Governmental fund Types Ftmd Type Fund Types Account Groups (Memorandum Only) Special Debt Capital General General Long- December 31, General Revenue Service Projeets Enterprise Agency Fixed Assets Term Debt 1988 1987 L(ABILITIES AND FUND EQUITY Liabilities Accounts payable E261,465 570,059 E987 E8,047 5291,422 E631,980 E434,969 Due to other funds (Note 12) 253,367 25,000 278,367 70,734 Accrued salaries and wages 223,956 20,317 244,273 168,686 Accrued vaeation sick pay (Note 1J) 68,392 28,151 E341,961 438,504 413,136 lemporary improvement notes (Note 3) 859,610 859,610 679,226 Deferred revenue 69,329 19,709 1,450,858 775,213 2,335,109 2,195,379 Interfund advances 668,042 1,361,810 2,029,852 274,419 Revenue bonds payable (Notes 5& 6) 180,000 180,000 225,000 General obligation bonds payable (Note 5) 1,440,000 1,440,000 1,740,000 Special assessment bonds payable (Note 5) 1,220,000 1,220,000 1,500,000 Tax increment bonds payabte (Note 5) 6,060,000 6,060,000 6,120,000 Deferred conipensation funds held for participants (Note 14) 1,339,628 1,339 628 1,163,921 I Total Liabilities 643,142 1,011,177 1,451,845 1,642,870 1,906,700 1,339,628 9,061,961 17,057,323 14,985,472 i Fund Equity Contributed cepital (Note 8) 11,302,495 11,302,495 t0,616,086 Invested in general fixed assets 514,214,165 14,214,165 15,990,707 Retained earnings: Reserved: Debt retirement (Note 6? 127,020 127,020 128,775 Special assessments 96,940 96,940 111,224 Plant expansion 4,000,000 4,000,000 4,000,000 Working capitat 620,000 620,000 620,000 Unreserved 5,316,569 5,316,569 5,104,603 Fund Balances: Reserved: Inventories 39,973 39,973 44,644 Debt service 3,617,203 3,617,203 3,360,297 i Unexpended appropriations 28,205 28,205 49,809 l State approved projects 2,205,510 2,205,510 2,022,872 [nterfund loans 72,834 1,957,018 2,029,852 I Unreserved: I Undesignated 5,544,728 3,266,960 5,561,347 14,373,035 14,616,185 Total Fund Equity 5,657,535 3,266,960 3,617,203 9,752,080 21,463,024 14,214,165 0 57,970,967 56,665,202 TOTAL LlAetllTlES AND FUND EoU1TY E6,300,677 S4,278,137 55,069,048 E11,394,950 E23,369,724 E1,339,628 E14,214,165 E9,061,961 E75,028,290 E71,650,674 I (See notes to financial statements> City of Brooklyn Center EXNIBIT 2 All Goverrimental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CNANGES IN fUND BALANCES Year Ended December 31, 1988 Totals (Memorandum Only) Special Debt Capital Revenues General Revenue Service Projects 1988 7987 Taxes and s cial assessments 53,318,656 5988,637 5878,672 5155,225 55,341,190 53,973,600 Licenses and permits 329,783 329,783 345,079 Intergoverrmental 3,078,491 327,431 91,632 612,819 4,110,373 3,854,503 Charges for services 1,215,635 53,577 1,269,212 1,151,243 Court fines 243,952 243,952 269,903 Investment earnings 326,248 274,123 241,284 605,975 1,447,630 1,382,558 Sale of property 0 228 665 Miscellaneous ____37,670 42,699 7,174,284 7,25T,670 Total Revenues 8,550,435 1,686,467 1,214,605 2,548,303 13,999,810 11,292,558 Expenditures Current: I General government 1,768,607 4,674 1,773,281 1,573,858 Public safety 2,716,205 2,716,205 2,604,773 Public works 1,768,918 1,768,918 1,552,532 Conmunity health services 69,117 69,117 48,185 Parks and recreation 1,706,516 59,130 1,765,646 1,597,901 Economic development 162,271 670,971 833,242 629,312 Non-departmental 310,475 43,413 353,888 355,278 Capital outlay 1,274,595 7,274,595 1,898,270 Debt service: Princi al retirement 0 640 000 640 00 1 304 925 P Interest and fiscal charges 690,275 690,275 1,017,925 7otal Expenditures _8,502,109 734,775 1,330,275 1,318,008 11,885,167 12,582,899 Excess/Deficiency(-) Revenues Over Expenditures 48,326 951,692 (115,670) 1,230,295 2,114,643 (1,290,341) Other Financing Sources or Uses(-) Proceeds of General Obligation Bonds 1,200,000 Operating transfers in 337,871 310,190 506,099 1,494,746 2,648,906 1,039,737 Operating transfers out (1,339,692) (1,219,214) (2,558,906) (929,737) Payments to escrow agent (1,170 075) l Total Other Financing Sources or Uses(-) 337,871 (1,029,502> 506,099 275,532 139,925 Excess or Deficiency(-) of Revenues and Other Sources Over Ex nditures and Other Uses 386,197 (77,810) 390,429 1,505,827 2,204,643 (1,150,416> Fund Balance January 1 5,247,769 3,477,446 3,360,297 8,008,294 20,093,806 21,250,790 Decrease in reserve inventories (4,671) (4,671) (6,568) Equity transfers 28,240 (132,676) (133,523) 237,959 0 Fund Balance December 31 55 53-266,960 $3_617_203 59,752 S22_293 520,093,806 (See notes to financial statements) -19- City of Brooklyn Center EXHIBIT 3 General and Special Revenue Fu�ds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN fUND BALANCES BUDGET (GAAP BASIS) AND ACTUAL Year Ended December 31, 1988 General F�nd Speciat Revenue Funds Actual Over Actuat Over Under(-) Under(-) _Budget Actual Budget Actual Budget Revenues Property taxes 53,422,403 53,318,656 ($103,747) 5974,369 5988,637 514,268 Licenses and permits 333,200 329,783 (3,417) intergoverrniental 3,074,468 3,078,491 4,023 327,700 327,431 (269) Charge for services 1,181,373 1,215,635 34,262 53,500 53,577 77 Court fines 270,000 243,952 (26,048) Miscellaneous 333,885 363,918 30,033 335,845 316,822 (19,023> Total Revenues 8,615,329 8,550,435 (64,894) 1,691,414 1,686,467 (4,947) Expendi tures Current: General goverronent 1,995,406 1,768,607 (226,799) 5,000 4,674 (326) Public safety 2,839,117 2,716,205 (122,912) Public works 1,864,131 1,768,918 (95,213> Community health services 68,858 69,117 259 Parks and recreation 1,793,256 1,706,516 (86,740) 60,000 59,130 (870) Economic developrtient 175,000 162,271 (12,729) 750,046 670,971 (79,075} Non-departmental 475,437 310,475 (164,962) Total Expenditures 9,211,205 8,502,109 (709,096) 815,046 734,775 (80,271) Excess or Deficiency(-) of Revenues Over Expenditures (595,876) 48,326 644,202 876,368 951,692 75,324 Other Financing Sources or Uses(-) Operating transfers in 317,876 337,871 19,995 378,565 310,190 (68,375> Operating transfers out (745,710) (1,339,692) (593,982) Total Other Financing Sources or Uses(-) 317,876 337,871 19,995 (367,145) (1,029,502) (662,357) Excess or Deficiency(-) of Revenues and Other Sources Over Expenditures and Other Uses (278,000> 386,197 664,197 509,223 (77,810) (587,033) Fund Balance January 1 5,247,769 5,247,769 0 3,477,446 3,477,446 0 Decrease in reserve for inventories (4,671) (4,671) Equity transfers 28,000 28,240 240 (132,899) (132,676) 223 Fund Balance December 31 S4_997_769 55�657_535 5659 766 S3_853_770 $3_266_960 _(5586_810) (See notes to financial statements) -20- City of Brooklyn Center EXHIBIT 4 Proprietary Fund Type COMBINED STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1988 Enterprise Funds Operating Revenues Sales and user fees $4,690,144 $4,180,583 Cost of sales 2,000,854 1,930,254 Total Operating Revenues _2,689,290 _2,250,329 Operating Expenses Personal services 638,121 499,670 Supplies 169,855 126,857 Other services 1,348,103 1,065,024 Insurance 50,767 37,918 Utilities 198,447 160,085 Rent 212,844 207,920 Depreciation 359,592 257,465 Total Operating Expenses 2,977,729 2,354,939 Operating Income or Loss(-) (288,439) (104,610) Non-Operating Revenues or Expenses Investment earnings 639,018 636,183 Special assessments 12,936 39,389 Other revenue or expense(-) 9,143 8,232 Interest and fiscal agent fees (86,731) 34 652 Non-Operating Totals 574,366 649,152 Income Before Operating Transfers 285,927 544,542 Operating Transfers Out(-) (90,000) (110,000) Net Income 195,927 434,542 Retained Earnings January 1 _9,964,602 _9,530,060 Retained Earnings December 31 $10,160,529 $9,964,602 (See notes to financial statements) -21- City of Brooklyn Center EXHIBIT_5 Proprietary Fund Type COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION For the Year Ended December 31, 1988 Enterprise Funds Sources of Financial Resources Operations: Net income for year $195,927 $434,542 Add: Items not requiring current outlay depreciation ___359,592 ___257,465 Total Resources Provided by Operations 555,519 692,007 Contribution toward construction 1,786,409 19,106 Decrease in restricted assets 1,755 18,090 Total Sources 2,343,683 729,203 Use of Financial Resources Purchase of properties 2,067,102 655,007 Payments to retire bonds 58,723 57,609 Total Uses 2,125,825 712,616 Net Increase or Decrease(_) in Working Capital __$217,858 ___$16,587 Elements of Increase or Decrease(-) in Working Capital Cash and investments $373,358 ($274,370) Temporary improvement notes 130,617 116,352 Accounts receivable 15,525 (7,907) Accrued revenue 6,142 24,451 Assessments receivable (17,493) 15,726 Due from other governments (67,425) (52,392) Inventories (8,002) (2,796) Prepaid expense (2,745) 32,058 Accounts payable (174,430) (20,732) Contracts payable 134,239 Due to other funds (25,000) 36,363 Accrued liabilities (11,575) 16,619 Current portion of long-term debt (1,114) (1,024) Net Increase or Decrease(_) in Working Capital __$217,858 ___$16,587 (See notes to financial statements) -22- �.1 �Y 9.� Br44 k 1Y�1 ��l��r NOTES �0 FINANCIAL STA�M�N�S �QB �HE YEAR �N.p.�D D�CE�R 12$$ Note 1: S�mmary �i�ni�ican� Accou��in� PQ��ies A. R�or�rJg ��titv The City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appoint- ment of governing body members, budget review, approval of property tax levies, outstanding debt secured by City full faith and credit or revenues and responsibility for funding deficits. As a result of applying the entity definition criteria of the Governmental Accounting Standards Board, certain organ- izations have been included or excluded from the City's fi- nancial statements, as follows: Included: Economic Development Authority in and for the City of Brooklyn Center (EDA). EDA was created by the City to provide housing and redevelopment assistance to Brooklyn Center citizens. The EDA provides this assistance through the admini- stration of various programs. Inasmuch as the EDA's governing board is appointed by the City Council, the Council reviews and approves EDA's tax levies, the City provides major community development financing for EDA's activities, and the City Manager is the Executive Director, the EDA is considered to be a component unit of the Ci ty .�cluded: The Brooklyn Center Fire Department Relief Association. The Association is organized as a non-profit organization by its members to provide pension and other benefits to -23- Note 1: �.1��Tl�.Y 4� �.$'1��ca� ,A�cou�tina �olicies (continued) A. �g���in� E�?titv_ continued such members in accordance with Minnesota statutes. The board of directors is elected by the membership of the or- ganization. Al1 funding is conducted in accordance with Minnesota statutes, whereby state aids flow to the associ- ation. Tax levies, if necessary, are determined by the association and are only reviewed by the City, and the association pays benefits directly to its members. Be- cause the association is able to fund its programs inde- pendently of the City, it is excluded from the reporting entity. State Aid insurance premium tax in the amount of $83,988 and ad valorem taxes in the amount of $26,743 were receipted by the City and disbursed to the Association during 19$$• Independent School District No. 286 (Earle Brown) Independent School District No. 27g (Osseo) Independent School District No. 281 (Robbinsdale) Independent School District No. 11 (Anoka) Independent School District No. 287 Suburban Hennepin County Area Voca- tional Institute) These Districts, like all school districts in Minnesota, are completely independent of any other governmental entity. They have their own elected Board of Education, levy their own taxes and issue their own financial re- ports. B. �I�SI �S�oun�in� 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, liabili- ties, fund equity, revenues, and expenditures, or ex- penses, as appropriate. Government resources are allo- cated to and accounted for in individual funds based upc�n 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 state- ments in this report, into six generic fund types and three broad fund categories as follows: -24- Note 1: Summa�,y Q,� Significa�� �lccouqtin� Pol�.cie� (continued) GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resourc- es except those required to be'accounted for in another fund. Special Revenue Funds Special Revenue Funds are used to ac- count for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified pur- poses. 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 re- lated costs. Capital Projects Funds Capital Projects Funds are used to aecount for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds. PROPRIETARY FUNDS Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. FIDU CIARY FU NDS Agency Funds Agency Funds are used to account for assets held by the City as an agent for others. C; ��,xPd Assets and Long-Te�r� Liab���,� The accounting and reporting of fixed assets and long- term liabilities associated with a fund are determined by its measurement focus. Al1 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 consid- ered a measure of "available spendable resources." Governmental fund operating statements present in- creases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to -25- Note 1: Summary Si�nifi�ant �ccountinE ��,icies (continued) present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations are accounted for in the General Fixed Assets Account Group, rather than in the governmental funds. Effective January 1, 1987, 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. Al1 fixed assets are valued at historical cost or esti- mated historical cost if historical cost is unavail- able. Donated fixed assets are valued at their esti- mated value as of the date donated. The fixed assets of the proprietary funds are depreci- ated 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 i Water Wells and Storage Tanks 15-50 years Sewer Lift Stations 15-40 years Machinery and Equipment 5-20 years Furniture and� Fixtures 5-20 years Public Utility assets financed by special assessments are recorded as contributions. Long-term liabilities expected to be financed from i� governmental funds are accounted for in the General Long Term Debt Account Group, not in the gov ernm ental funds. D: Bas� Aecounting 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. -26- Note 1: Summarv S�gnifica.�t .�,ceou�in� Po��ies (continued) 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 in- clude licenses and permits, fees and miscellaneous revenues; such revenues are recorded only as received because they are not measurable until collected. In- terest on special assessments is recognized as revenue when due, net of delinquencies. Expenditures are generally recognized under the modi- fied 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 recog- nized 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. Bud.a,�� Bud�Pta�y Aecou�tin� The City follows these procedures establishing the budgetary data reflected in the financial statements: 1. By the first regular Council meeting in September, the City Manager submits to the City Council proposed operating budgets for the fiscal year commencing the f ollowing January. The operating budgets include ex- penditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budgets are legally enacted through passage of a resolution by the City Council not ].ater than the first week of October. 4. The City Council must authorize any transfer of budgeted amounts between departments within any fund. 5. Supplemental appropriations may be made during the year by the City Council. These amounts must be financed by funds from the contingency reserve set up in the general fund or by additiona]. revenues. 6. All budget amounts lapse at the end of the year to the extent they have not been expended. -27- Note 1: Summarv �i�nific� �eco�antin� Polic�es (continued) E, ,��,�ets B�eta,�y �eco�in� cot�t},nued�. 7. Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Funds. Formal budge- tary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture pro- visions. Budgetary control for Capital Projects Funds is accomplished throu�h the use of project controls. 8. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. g. Budgetary control is maintained at the expenditure category level within each activity. Budgetary control is maintained in compliance with City Council's di- rections. City departments are not allowed to exceed budgetary expenditure totals for the department. 10. Budgeted amounts are as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the orginal appropri- ations. F. �l�estq�ents Cash balances from all funds are combined and invested to the extent available in authorized investments (see Note 2). Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Temporary cash investments are stated at cost which approximates market. G ��[.�1#�r.X Inventories are valued at the lower of average cost or market, using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are re- corded as expenditures when consumed rather than when purchased. H. o t a1 .S���ID.t� 4.n �m1�3.n.€d S t a�� e n t s 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 changes in financial position in con- formity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. -2s- Note 1: Summarv S�'gnificant �4ccou,�tin� .policies (continued) I. Pro,pertv Property tax levies are set by the City Council in October 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 record- ed as receivables by the City at that date. Revenues are acerued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts four times a year, in February, April, June and November. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by deferred revenue because they are not know n to be available to finance current expenditures. No allow- ance for uncollectable taxes has been provided because such amounts are not expected to be material. Minnesota cities operate under a levy limitation law which allows an increase in the tax levy each year equal to the Implicit Price Deflator increase or 3�, whichever is greater, further indexed by the percentage increase in households or population, whichever is greater. Levies for bonded indebtedness are not limited by this law. J. Ace���},i ated, �nnaid Vacation �ick ��y The City pays employees severance pay upon termination of employment based on accumulated sick leave and ac- crued vacation. Such pay is accrued as an expense as it is earned in the Enterprise Funds. For the General Fund, the amount to be funded in future years is recorded in the General Long-term Debt Account Group. K. �gc�assificatio� Certain 1987 accounts nave been reclassified to conform to the 1988 presentation. -29- Note 2: �b InvestIDents A. pgo o s j,� �i In accordance with Minnesota Statutes, the City main- tains deposits at those depository banks authorized by the City Council. All such depositories are 1 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 securi- ties pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that f urnishing the collateral. At December 31, 1988 the carrying amount of the City's demand deposits was $95,542 and the bank balance was $136, 367. Of the bank balance, $103 was covered by federal depository insurance (risk category 1) and the remainder by collateral held in the pledging bank's trust department in the City's name (risk category 2). Cate�orv (1) Insured or collateralized by securites held t�y *he City or its agent in the City's name (2) Collateralized with securities held by the pledging institution's trust department in the City's name 3) Uncollateral ized or collateral ized with securities held by the pledging institution, but not in the City's name Categories 2 and 3 are not procedures that are author- ized by Minnesota Statutes; however, due to the effects of cash flows, the City's deposits have temporarily fallen into these categories. -30- Note 2: C�� �rvestmen�� (continued) Amounts in category 3, as defined above, were significant at certain times during the year due to higher cash flows arising from property tax collections or the receipt of state aids. B. �yPSr men#�,� The City may also invest idle funds as authorized by Minnesota Statutes, as follows: (a) Direct obligations or obligations guaranteed by the United State or its agencies. 1 (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only inv estments are in securities de- scribed in (a above. (c General obl igations 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 corpora- tions or their Canadian subsidiaries, of the highest qual ity, and maturing in 270 days of less. (f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U. S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker- dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd. 5. -31- Note 2: Cash and Investments (continued) Balances at December 31, 1988 Credit Risk Category Carrying Market Securities Type 1 2 3 Amount Value U.S. Governments $500,000 $5,220,918 $1,506,924 $7,227,842 $7,170,491 Federal Agencies 17,823,857 1,049,782 18,873,639 18,713,373 Bankers Acceptance 1,108,759 1,108,759 1,108,759 Repurchase Agreemt 200,000 200,000 200,000 $500,000 $24,353,534 $2,556,706 $27,410,240 $27,192,623 Total Deposits (Note 2-A) ____95,542 Total Cash and Investments $27,505,782 Other Assets Investment Pools Deferred Compensation Plan $1,339,628 $1,339,628 The City's investments are categorized above to give an indica- tion of the level of risk assumed at year-end. Category 1 in- includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered invest- ments for which the securities are held by the broker's or dealer'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 broker or dealer, or by its trust department or agent but not in the City's name. Note 3: �moo�.ry �royemen� Note� Temporary Improvement Notes represent interfund borrowings to provide interim financing for construction projects or capital outlay expenditures. Such loans bear interest at 12 percent and totaled $859 ,610 and $679 ,228 at December 31, 1988 and 1987, respectively. For collection purposes, all of these notes are considered current. -32- Note 4: Fixed Assets Changes in the General Fixed Assets account group during 1988 were as follows: Balance Balance Jan. 1, Dec. 31, 1988 Additions Disposals 1988 Land $1,427,531 $1,465,868 $2,893,399 Buildings Improvements 6,008,115 99,021 $1,851,422 4,255,714 Park Properties 3,992,419 10,740 945,843 3,057,316 Furniture 470,747 97,640 568,387 Departmental Equipment _4,091,895 ___242,480 ___895,026 _3,439,349 TOTAL GENERAL FIXED ASSETS $15,990,707 $I,915,749 $3,692,291 $14,214,165 Changes in the Liquor Fund Fixed Assets during 1988 were as follows: Balance Balance Jan. 1, Dec. 31, ______1988 Additions Disposals ______1988 Land $106,776 $106,776 Buildings Improvements 216,547 216,547 Leasehold Improvements 39,670 39,670 Furniture Fixtures 41,812 $600 42,412 Departmental Equipment 115,158 37,322 $33,048 119,432 TOTAL LIQUOR FUND ASSETS $519,963 $37,922 $33,048 $524,837 -33- Note 4: Fixed Assets (continued) Changes in the Utility Fund Fixed Assets during 1988 were as follows: Balance Balance Jan. 1, Dec. 31, ______1988 Additions Disposals ______1988 WATER DEPARTMENT Land $24,816 $502 $25,318 Buildings Improvements 2,517,340 140,324 $178 2,657,486 Mains and Lines 7,570,370 7,570,370 Machinery Equipment 176,894 39,019 18,755 197,158 TOTAL WATER DEPARTMENT $10,289,420 __$179,845 ___$18,933 $10,450,332 SEWER DEPARTMENT Buildings Improvements $1,034,465 $4,722 $1,039,187 Mains and Lines 4,968,191 4,968,191 Machinery Equipment 176,894 39,019 $18,755 197,158 TOTAL SEWER DEPARTMENT $6,179,550 $43,741 $18,755 $6,204,536 TOTAL UTILITY FUND $16,468,970 __$223,586 ___$37,688 $16,654,868 Changes in the Golf Course Fixed Assets during 1988 were as follows: Balance Balance Jan. 1, Dec. 31, 1988 Additions Disposals 1988 Land $1,390,402 $1,390,402 Land Improvements 15,495 15,495 Buildings Improvements 306,021 306,021 Furniture Fixtures 16,304 16,304 Departmental Equipment ____77,372 ____77,372 TOTAL GOLF COURSE ASSETS $0 $1,805,594 $0 $1,805,594 r -34- Note 5: L�$:�rm APbt The following is a summary of bond transactions of the City O for the year ended December 31, 1988: General G.O. Tax Water Obligation Increment Improvement Revenue _____Bonds _____Bonds _____Bonds Bonds _____Total Bonds payable January 1 $1,740,000 $6,120,000 $1,500,000 $225,000 $9,585,000 Bonds issued Bonds retired ___300,000 ____60,000 ___280,000 45,000 ___685,000 Bonds payable December 31 $1,440,000 $6,060,000 $1,220,000 $180,000 $8,900,000 In addition to the bond transactions, sick and vacation accruals increased from $326,489 in 1987 to $341,961 in 1988 C�e�� Ob],j„�at Bonds General Obligation Bonds are recorded in the General Long-Term Debt Account Group and are backed by the full faith and credit of the City. ��eremen� Bonds Tax Increment Bonds are recorded in the General Long- term Debt Account Group and are backed by the full faith and credit of the City. They will be repaid from incremental tax increases on the property within certain development districts. �i,�ovement B4nds These bonds are recorded as a liability in the General Long-Term Debt Account Group and are payable primarily from special assessments levied and collected for local im- provements. The City has a contingent liability relating to a pledge of full faith and credit on the Special Assessment Bonds. The general credit of the City is obligated only to the extent that liens foreclosed against properties involved in the special assessment districts are insufficient to re- tire outstanding bonds. -35- Note 5: Long-Term Debt (continued) Long-term debt maturities (including interest of $5,274,896) are as follows: General G.O. Tax Water Obligation Increment Improvement Revenue Bonds Bonds Bonds Bonds Total 1989 $408,795 $548,888 $303,385 $52,020 $1,313,088 1990 257,175 591,838 266,979 50,265 1,166,257 1991 398,445 592,650 246,775 48,510 1,286,380 1992 334,810 645,488 168,260 46,755 1,195,313 1993 321,780 669,282 127,158 1,118,220 1994 on 7,796,945 298,693 8,095,638 $1,721,005 $10,845,091 $1,411,250 $197,550 $14,174,896 Long-term debt obligations outstanding at year-end are summarized as follows: Bond Payment issue Maturity Authorized Rates Dates Date Date And Issued Retired Outstanding Generat Obligation Bonds G.O. State-Aid Street Bonds 6.75 3-01 9-01 09-01-70 03-01-91 51,050,000 5870,000 5180,000 1969 Buitding Impr Bonds 6.5 1-01 7-01 07-01-69 01-07-90 2,280,000 2,130,000 150,000 1980 Park Improvement Bonds 7.0-7.6 2-01 8-01 09-01-80 02-01-93 1,500,000 390,000 1,170,000 Total $4,830,000 $3,390,000 51,440,000 Tax Increment Bonds 1983 G.O. Tax Incr Bonds 7.2-9.0 2-01 8-01 11-01-83 02-01-97 5930,000 5120,000 5810,000 1985 G.O. Tax Incr Bonds 6.3-8.1 2-01 8-01 12-01-85 02-01-03 5,250,000 5,250,000 Totat 56,180,000 5120,000 56,060,000 Improvement Bonds 1970 Improvement Bonds 6.75 1-01 7-01 07-01-70 01-01-90 52,250,000 52,230,000 520,000 1976 Improvement Bonds 5.2-5.4 2-01 8-01 10-18-76 02-01-91 480,000 800,000 180,000 1987 Refunding Bonds 4.0-5.5 2-01 8-01 02-23-87 02-01-97 1,200,000_ 180,000 _1,020,000 7otal 54,430,000 53,210,000 E1,220,000 4later Revenue Revenue Bonds of 1963 3.9 1-01 7-01 07-01-63 01-01-93 $1,000,000 5820,000 5180,000 On April 1, 1987, the City issued 51,200,000 in general obligation bonds with an average interest rate of 5.06 percent to advance refund 51,825,000 of outstanding 1982 Improvement Bonds with an average rate of 9.02 percent. The net proceeds of 51,170,072, plus an additional 5867,926 of 1982 Improvement eonds sinking funds uere used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust uith an escrow agent to provide for all future debt service payments on the 1982 Improvement Bonds. As a result, the 1982 Improvement Bonds are considered to be defeased and the liability for those bonds has been removed from the general long-term debt account group. At December 31, 1988, E1,625,000 of such bonds remain outstanding. -36- Note 6: �ublic U�ilities Fund Public Utilities Revenue bonds were issued during 1963 to finance an addition to the water works system. These bonds, together with related interest and service charges, are payable solely from the operations of the Public Utilities Fund and are not a general obligation of the City. The resolution authorizing and directing the issuance of these bonds contain covenants and restrictions enacted f or the purpose of protecting the bondholders' interest. Paragraph 8 of the resolution provides for the segregation of assets and the appropriation of retained earnings for debt retirement purposes and defines the manner of account- ing for the activities of the Public Utilities Fund. As required by Paragraph 10e af the issuing resolution, an analysis of each account balance appears as follows: Debt Ret�rement Aecount Accumulated amounts set aside to meet 1989 requirements for interest and principal: Investments with accrued interest 52,020 Reserve account investments 75,000 Total Debt Retirement Account: All bonds are subject to redemption (call) on any interest payment date in inverse-numerical order at par and accrued interest. -37- Note: 7 Segment Information Enterprise Funds: Municipal Public Golf Li quor Utilities Course fund Fund Fund Total Operating Revenues $2,583,594 $1,899,586 $206,964 $4,690,144 Depreciation Expense 11,392 327,751 20,449 359,592 Operating Income (Loss) 148,787 (475,733) 38,507 (288,439 Operating Transfers (aut) (90,000) (90,000� Net Income (Loss) 45,737 164,641 (14,451) 195,927 Current Capital Contributions 686,409 686,409 Property, Plant Equipment: Additions 37,922 223,586 1,805,594 2,067,102 Deletions 33,048 37,688 70,736 Net Working Capital 253,794 4,551,183 (13,187) 4,791,790 Total Assets 792,971 20,775,121 1,801,632 23,369,724 Bonds and Other Long-Term Liabilities Payable from 0perating Revenues 248,087 135,000 1,100,000 1,483,087 Total Equity $368,330 $20,422,736 $671,958 $21,463,024 Note: 8 Contributed Capital Enterprise funds have received contributed capital from several sources. The fixed assets acquired in this fashion have been depreciated along with other fund assets, but the contributions under Fund Equity on the balance sheet has not been reduced for the depreciation. During the year contributions changed by the following amounts: Public Golf Utilities Course SOURCE Fund Fund Capital Improvements Fund $686,409 Special Assessment Construction Fund Total Change $0 686,409 Contributions, January 1, 1988 10,616,086 Contributions, December 31, 1988 $10,616,086 _$686,409_ -38- NOTE 9: .PE��QI�I .P��I��llBL.IC ��,LOY� �ETI$EMENT �SSOCIA�ION ��A.�. City employees participate in the pension plans administered by the Public Employ ees Retirement Association (PERA). In accordance with Government Accounting Standards Board State- ment No. 5, the PERA plans are classified as a defined- benefit multiple-employer cost-sharing plans. Disclosures relating to this plan is as follows: A: Plan Deseribtio� All full-time and certain part-time employees of the City of Brooklyn Center are covered by defined pension plans admin- istered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Re�irement 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 Coor- dinated 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, 1988, was $3,�75,589 and $1,2�43,775 re- spectf ul ly the Ci ty' s total pay roll was $4, 91 4, 164. PERA provides retirement benefits as well as disability bene- fits to members and benefits to survivors u on death of eligible members. Benefits are established by state statute, and vest after five 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. The annuity ac- crual rate for a Basic member is 2 percent of average salary for each of the first 10 years of service and 2.5 percent for each remaining year. For a coordinated member, the annuity accrual is 1 percent of average salary for each of the first 10 years and 1.5 percent for each remaining year. For PEPFF members, the annuity accrual rate is 2.5 percent of average salary for each of the first 25 years and 2 percent for each remaining year. For both PERF and PEPFF, members are eligi- ble for a full annuity when age plus years of service equal 90. -39- There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but bef ore retirement benefits begin. B. F�.��g S t a t u s��rQg�� 1. Pension Benefit Obligation The "pension benefit obligation" is a standarized disclosure measure af 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 the PERA'S funding status on a going-concern basis, assess progess made in accumulating sufficient assets to pay benefits w hen due, and make compar- i isons among Public Employees Retirement Systems and employers. PERA does not make separate measurements of assets and pension benefit obligations for individual empl oy er s The pension benefit obligations as of June 30, 19$$, were as follows: Publ ic Publ ic Employees Employees Retirement Police Fund Fire Fund (in millions) Total pension benefit obligations $3 ,334 $513 available for benefits Net assets at cost (market value of PERF $2,749; PEPFF $585) $2,611 $544 Unfunded (assets in excess of) pension benefit obligation $__723 $(31) -40- The measurement of the pension benefit obligations is based on an actuarial valuation as of June 30, 1988. Net assets available to pay pension benefits were valued as of June 30, 1988. 2. Change in Actuarial Methods Prior to fiscal year 1988, the mortality table used was the UP-1984 Unisex set forward on y ear for males and set back four years for females. For fiscal year 1988, the PERA Board of Trustees approved the use of the 1971 Group Annuity Mortality Table projected to 1984 for males and females. The change was made in order to reduce, if not eliminate, the series of large, annually recurring mortality losses that have been realized in the last f our years. With the adoption of the new mortality table, the projected benefit obligation increased $179,670,000 in Public Employees Retirement Fund and $18,805,000 in Public Employees Police and Fire Fund. The change is actuarial methods does not affect the City's contribution rate. C. �ntribut�ons Reaui.� Made Minnesota Statutes Chapter 353 sets the rate for employer and employee contributions. The City makes annual contribu- tions to the pension plans equal to the amount required by state statutes. Minnesota Statutes Chapter 356.215, subd. 4(g) provides the formula for determining the date of full funding f or the PERF and the PEPFF. Those dates are 2010 and 2018 respectively. As part of the annual actuarial valuation, PERA' S actuary determines the sufficiency of the statutory contribution rates toward meeting the required full funding deadline. The actuary compares the actual con- tribution rate to a"required" contribution rate. Current statutory rates and actuarially required contribution rates for the plans are as follows: -41- Statut R tes Rea Q .l�r� �Y �molov� �m,�,� Public Employees Retirement Fund: Basic Plan 8� 10.50� 9.46% Coordinated Plan 4� 4.25� 5.11� Publ ic Employees Police Fire Fund 8� 12.00� 15.97� Total contributions made by the City during fiscal year 1988 were as follows: Percentage of CQ��� u t i o n C�_v��d P�y�^ 011 ��.A.�4Y� ��P� oY� �!C►P 1 oX� E m.P�.4Y.�� X� Public Employees Retirement Fund: Basic Plan 15,542 20,�402 8� 10.50� Coordinated Plan 114,936 122,455 4� 4.25� Public Employees Police Fire Fund 98,702 14g,253 8� 12.00� The City s contribution for the year ended June 30, 19$$, to the Public Employees Retirement Fund represented approximate- ly .2 percent of total contributions required of all partici- pating entities. For Public Employees Police and Fire Fund, contributions for the year ended June 30, 1988, represented .7 percent of total contributions req uired by all partici- pating entities. D. �elated Pa�ty .Investm��t� As of June 30, 1988, and for the fiscal year then ended, PERA held no securities issued by the City or other related par- ties. E. �rend In�rmatio,� Ten-year historical trend information is presented in PERA'S Comprehensive Annual Financial Report for the Year ended June 30, 1988. This inf ormation is useful in assessing the pension plan's accumulation of sufficient assets to pay per.- sion benefits as they become due. -42- Note 10: Pension Plan �ooklvn �enter DeAartment �g.],j,g� Association A. pese���ion The City contributes to the Brooklyn Center Fire Department Relief Association ("Association"). In accordance with Government Accounting Standards Board Statement No. 5, it is classified as a defined-benefit single-employer public employee retirement system. Volunteer firefighters of the City are members of the Associa- tion and its pension plan. The plan's baseline benefit is $450 per month after 20 years of service and attaining the age 50. There are additional benefits for service through 30 years with a maximum of $675 per month. Vesting begins with 10 years of service and benefits are pro-rated for members who have be- tween 10 and 20 years of service. Members may choose to take a lump sum settlement instead of the pension, equal to 35� of the benefit they would otherwise qualify for. Spouse's, children's and funeral benefits are also provided. These benefit provi- sions and all other requirements are consistent with enabling state statutes. The City levies property taxes at the direction of and for the benefit of the association plan and passes through state aids allocated to the plan, all in accordance with enabling state statutes. B. Fundi�g Status ��g�ess 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 in- creases, estimated to be payable in the future as a result of service to date. The measure is the actuarial present value of credited projected benefits and is intended to help users assess the funding status of the association plans on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among plans. It is independent of the actuarial funding method used to determine contributions to the plan, discussed in "C" below. t t 43- r Note 10: �Y].�.�n �n (continued) The pension benefit obligation was determined as part of an actuarial valuation at December 31, 1987• Significant actu- arial 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. On December 31, 1987, the unf unded pension benefit obligation was as follows: Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $1 ,247,677 Current Employees Employer-financed vested 664,434 Employer-financed nonvested 43,574 Total ension benefit obligation 1, 955,685 P Net assets available for benefits at cost, market equals $1,904,114 1,946,62g Unfunded pension benefit obligation 9 ,056 In 1988 the benefit levels were increased. The 1989 acturial valuation will reflect the new benefit levels. -44- Note 10: P�nsion P� (continued) C. ,����butio� �g,�ire� CQ��hution� Madg Financial requirements of the association plan are determined on an actuarial basis using the entry age normal actuarial cost method. Normal cost is funded on a current basis. The unfunded actuarial accrued liability is to be funded by December 31, 1999 The minimum tax levy obligation is the financial require- ment for the year less anticipated state aids. Any additional payments by the City shall be used to amortize the unfunded liability of the relief association. The funding strategy for normal cost and the unfunded actuarial accrued liability should provide sufficient resources ta pay plan benefits on a timely basis. Total contributions to the plan in 1988 amounted to $110,731, of which $26,743 was levied by the City of Brooklyn Center and $83,g88 was from the Sta�e of Minnesota. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of December 31, 1987. The contributions represent funding for normal cost of $59,759 and the amortization of the unfunded actuarial accrued liability of $40,642. Significant actuarial assumptions used to compute pension con- tribution 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 1988 was based on the same actuarial assumptions, benefit pro- vision, actuarial funding method, and other significant factors used to determine pension contribution req uirements in previous years. D. ��ated ��X �vestments During 1988 and as of December 31, 1988, the association held no securities issued by the City or other related parties. E Tr� .��r�� 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, 1988. Two-year trend information for the Association is as follows 1986 is not available): -45- Note 10: Pensio� Plan (continued) 1988 1987 Available assets as a percentage of pension benefit obligation 99� 99� r Unfunded pension benefit obligation as a percentage of covered payroll not* not� Applicable Applicable City's contribution�'* as a percentage of covered payroll not* not* Applicable Applicable *The Brooklyn Center Fire Department is a volunteer organiza- tion; thus, no covered payroll exists. �*The City's contribution was made in accordance with actuar- ially determined req uirements. Note 11 I�dividua� ,��1 Dise�.osu�gs Deficit fund balances exist in the following funds: Capital Projects Funds: Special Assement Construction: Unreserved fund balance 755,181 This deficit will be funded when bonds for authorized pro- jects are issued. Enterprise Funds: Golf Course: Unreserved retained earnings 14,451 -46- Note 12: ,j�terf� �eiv�� ��yables Individual interfund receivable and payable balances at December 31, 1988, were as follows: Due From/To Other Funds: Receiva,�� fund �,�pab� �moun.� Economic Development Comm. Dev. Authorit Block G rant $253 367 Y Capital Projects Golf Course $278,367 Interfund Loans From/To Other Funds: Rece,�vabjg fund vah Amour� P�.. 1� �ia1� General Fund Econ. Dev. Auth. 72,834 Municipal State Aid for Construction Econ. Dev. Auth 593,069 Special Assessment Construction Fund Econ. Dev. Auth 2,139 Capital Projects Liquor Fund 261 ,810 Capital Projects Golf Course �a00 $2,029,852 Interfund Loan Terms: The loans payable by the Economic Development Authority 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 is paying interest at the rate of 5� and is repaying the loan principal over a period extending through the year 2011. N o t e 13 S.4��.Y]� c i e s 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 finan- cial statements of the City. -47- Note 14: �omnensatio� �lan 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 def erred 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 far each participant. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes it is unlikely that it will use the assets to satisfy the claims of general credi- tors in the future. Effective January 1, 1 987, the City is reporting the ac- tivity of this plan as an agency fund. There was no effect on fund equities as a result of this change. Inasmunch as the City has no other fiduciary funds, the activity during the year is summarized as follows: Balance Balance January 1, December 31, ��itio�� D��uctio�� 1988 Other assets $1,163,921 $184,366 8,659 $1,339,b28 ��BILI'�ES Deferred compensation Funds held for parti- cipants. $1,163,921 $184,366 $__8,659 $1,339,628 -48- Note 15: �ost_Emnloyment HP�� Care Benefj,ts In addition to providing pension benefits, the government pro- vides certain health care insurance benefits for city employees who retire before age 65. Substantially all of the government's employees may be eligible for those benefits from the time they reach normal retirement age until they reach age 65 or become eligible for medicare. The cost of retiree health care insurance benefits is recognized as an expenditure as premiums are paid. For 19$$, those costs total $4,674. This benefit was initiated on April 1, 1986 and will expire on December 31 1990 unless it is re-enacted by the City Council. Note 16: Fund C�anaes The following funds were opened during 19$$: Enterprise: Golf Course owin funds were closed durin 1 88: The foll g g 9 Special Revenue: Rev enue Sharing LAWCON Debt Service: Improvement Bonds of 1969 Note 17: Subsea �ve�t On May 8, 1989 the City Council, acting as the Economic De- velopment Authority, entered into contracts totaling $4,562, for the restoration of the Earle Brown Farm historical site and its development as a convention center. It is intended that the construction will be paid for from fund balances and internal borrowing. The borrowing will be repaid from future tax inerements. -49- City of Brooklyn Center, P�Zinnesota 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 sha 1 1 provide for a Genera 1 Fund for the payment of such e�xpenses 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. i -50- City of Brooklyn Center A-1 General Fund BALANCE SHEET December 31, 1988 and 1987 Totals 1988 1987 ASSETS Cash and investments $5,843,038 $5,427,838 Temporary improvement notes 183,190 177,957 Accounts receivable 36,719 11,721 Taxes receivable 96,438 67,314 Due from other governments 26,323 31,495 Inventory of supplies 39,973 44,644 Prepaid expense 2,162 2,362 Interfund loan-E.D.A. 72,834 TOTAL ASSETS $6,300,677 $5,763,331 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $261,465 $240,257 Accrued salaries payable 223,956 153,142 Accrued vacation and sick pay 68,392 65,298 Deferred revenue 89,329 56,865 Total Liabilities 643,142 515,562 Fund Balance Reserved for: Inventories 39,973 44,644 Interfund loan 72,834 Unreserved fund balance 5,544,728 5,203,125 Total Fund Balance _5,657,535 _5,247,769 TOTAL LIABILITIES AND FUND BALANCE $6,300,677 $5,763,331 (See notes to financial statements) -51- City of Brooklyn Center A-2 General Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET (GAAP BASIS) AND ACTUAL Year Ended December 31, 1988 1988 Actual Over or Under(-) 1987 Budget ____Actual ____Budget ____Actual Revenues Property taxes $3,422,403 $3,318,656 ($103,747� $2,541,016 Licenses and permits 333,200 329,783 (3,417_ 345,019 Intergovernmental 3,074,468 3,078,491 4,023 3,060,252 Charges for services 1,181,373 1,215,635 34,262 1,114,203 Court fines 270,000 243,952 (26,048) 269,903 Miscellaneous _333,885 ___363,918 ____30,033 ___310,613 Total Revenues 8,615,329 8,550,435 (64,894) 7,641,006 Expenditures General government 1,995,406 1,768,607 226,799� 1,532,185 Public safety 2,839,117 2,716,205 122,912 2,604,773 Public works 1,864,131 1,768,918 (95,213 1,552,532 Community and health services 68,858 69,117 259 48,185 Parks and recreation 1,793,256 1,706,516 86,740 1,597,901 Economic Development 175,000 162,271 12,729 Non-Departmental 475,437 310,475 (164,962 313,860 Total Expenditures 9,211,205 8,502,109 (709,096) 7,649,436 Excess or Deficiency(-) of Revenues Over Expenditures (595,876) 48,326 _644,202 _(8,430) Other Financing Sources or Uses(-) Operating transfers in 317,876 ___337,871 ____19,995 ___166,888 Total Other Financing Sources or Uses(-) 317,876 __337,871 _19,995 166,888 Excess or Deficiency(-) of Revenues and Other Financing Sources Over Expenditures and Other Uses (278,000) 386,197 664,197 158,458 Fund Balance January 1 5,247,769 5,247,769 0 5,095,879 Decrease in Reserve for Inventory �4,671) (4,671) (6,568) Equity Transfers ____28,000 _____8,240 _______240 Fund Balance December 31 $4,997,769 $5,657,535 $659,766 $5,247,769 (See notes to financial statements) r _52_ S_ City of Brooklyn Center General Fund (Continued next page) SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1988 1988 Actual Over or Under(-) 1987 ____Budget ____Actual ____Budget ____Actual Ad Valorem Taxes Property taxes $3,204,403 $3,139,274 ($65,129` $2,529,752 Penalties and interest 35,000 8,522 26,478 11,264 Lodging tax 183,000 170,860 _12,140 Total Ad Valorem Taxes 3,422,403 3,318,656 (103,747) 2,541,016 Licenses and Permits Liquor and beer 127,400 122,953 (4,447) 131,748 Building permits 95,000 95,758 758 100,490 Mechanical permits 21,000 23,331 2,331 21,497 Sewer and water permits 3,500 1,423 2,077� 2,649 Plumbing permits 9,500 8,327 1,173 7,208 Electrical permits 19,000 11,071 _7,929 16,102 Garbage licenses 1,900 1,905 5� 1,928 Taxicab licenses 900 1,175 275 915 Mechanical licenses 2,700 3,588 888 3,782 Food licenses 17,800 22,136 4,336 20,562 Service station licenses 1,600 1,375 (225) 1,722 Vehicle dealer licenses 900 925 25 950 Bowling licenses 700 735 35 700 Ci�arette licenses 900 920 20 925 Swimming pool licenses 2,600 2,805 205 2,805 Sign permits 2,000 2,239 239 3,622 Rental dwelling permits 14,000 15,150 1,150 13,565 Lodging establishments 1,000 1,135 135 805 Amusement licenses 4,000 5,670 1,670 5,737 Dog licenses 5,250 5,389 139 5,337 Miscellaneous business license 1,550 1,773 223 1,970 Total Licenses and Permits 333,200 329,783 (3,417) 345,019 -53- S-1 City of Brooklyn Center General Fund (Continued next page) SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES BUDGET AND ACTUAL For the Year Ended December 31, 1988 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual Intergovernmental Federal grants: Miscellaneous grants 5,000 5,658 658 29,626 Total Federal Grants 5,000 5,658 658 29,626 State grants: Local government aid $2,080,644 $2,080,644 $0 $2,080,670 Homestead credit aid 761,178 761,178 0 736,156 Police pension aid 135,000 125,953 (9,047) 121,234 Firemen pension aid 83,988 83,988 0 78,913 Police training 12,412 12,412 Miscellaneous grants 6,858 6,858 0 13,653 Total State Grants 3,067,668 3,071,033 _____3,365 3,030,626 Local grants: Metro Council 1,800 1,800 0 Total Local Grants 1 800 1,800 0 0 Total Intergovernmental Rev. 3,074,468 3,078,491 4,023 3,060,252 Charges for Services Inter-Fund charges Admin.: Public Utility Fund 180,000 185,337 5,337 169,384 Liquor Fund 49,000 45,914 (3,086) 44,618 E.D.A. Fund 45,085 46,241 1,156 31,436 Engineering and clerical fees 120,000 209,765 89,765 88,673 General government charges 36,620 27,238 (9,382) 46,069 Public safety charges 3,500 13,617 10,117 12,239 Recreation fees 747,168 687,523 (59,645) 721,784 Total Charges for Services 1,181,373 1,215,635 34,262 1,114,203 Court Fines F�nes 270,000 243,952 (26,048) 269,903 Total Court Fines 270,000 243,952 (26,048) ___269,903 I I -54- S-1 City of Brooklyn Center General Fund (Continued from SCHEDULE OF REVENUE AND OTHER FINANCING SOURCES prior page) BUDGET AND ACTUAL For the Year Ended December 31, 1988 -----------------1988----------------- Actual Over or Under(-) 1987 ____Budget ____Actual ____Budget ____Actual Miscellaneous Rent 14,000 12,000 (2,000) 14,620 Interest on investments 295,000 326,248 31,248 272,828 Sale of property 75 75 17,035 Other ____24,885 25,595 _______710 _____6,130 Total Miscellaneous 333,885 363,918 30,033 310,613 Total Revenue 8,615,329 8,550,435 ___(64,894) 7,641,006 Other Financing Sources Operating transfers in: Liquor Fund $90,000 $90,000 $0 $110,000 H.R.A. Fund 0 43,453 M.S.A. Fund 17,411 17,411 13,435 Capital Projects Fund 227,876 227,876 0 Community Development 2,584 2,584 Total Other Sources 317,876 337,871 19,995 166 888 Total Revenue and Other Sources $8,933,205 $8,888,306 __($44,899) $7,807,894 (See notes to financial statements) -55- City of Brooklyn Center S_2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1988 next page) 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual General Government_ Mayor and Council: Personal services $25,122 $18,412 ($6,710� $18,103 Services and other charges 106,079 ____82,275 ___(23,804 59,675 Total Mayor and Council 131,201 100,687 (30,514) 77,778 Charter Commission: Services and other charges 1,500 597 (903) 702 Total Charter Commission 1,500 ______597 __(903) _______702 Administrative Office: Personal services 305,994 293,748 12,246' 266,343 Services and other charges 34,150 18,216 �15,934 18,878 Capital outlay 2,431 2,406 (25, 706 Total Administrative Office 342,575 _314,370 (28,205) ___285,927 Elections and Voter Registration: Personal services 35,406 30,168 (5,238) 16,157 Supplies 1,000 1,407 407 Services and other charges 2,400 3,230 830 724 Capital outlay 770 (7,382) (8,152) 69,031 Total Elections 39,576 _27,423 ___(12,153) ____85,912 Assessor's Office: Personal services 170,050 150,881 (19,169� 149,583 Supplies 2,785 525 (2,260 2,168 Services and other charges 5,517 4,841 (676 4,076 Total Assessor's Office 178,352 156,247 (22,105) __155,827 Finance: Personal services 280,803 269,479 (11,324) 248,274 Supplies 2,000 2,158 158 Services and other charges 1,500 1,898 398 3,199 Capital outlay 1,300 1,395 95 639 Total Finance ___285,603 ___274,930 (10,673) ___252,112 -56- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1988 next page) 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual General Government_(continued) Independent Audit: Services and other charges $14,500 $14,500 $0 $8,710 Total Independent Audit 14,500 14,500 0 8,710 Legal: Services and other charges 189,000 184,301 (4,699) 199,574 Total Legal 189,000 184,301 (4,699) 199,574 Government Buildings: Personal services 211,166 169,656 (41,510) 179,571 Supplies 17,250 19,960 2,710 13,590 Services and other charges 172,523 177,812 5,289 126,734 Capital outlay 303,344 223,216 (80,128) 59,007 Total Government Buildings 704,283 590,644 (113,639) 378,902 Data Processing: Supplies 3,000 2,910 �90) Services and other charges 81,635 83,185 1, 50 73,140 Capital outlay 24,181 18,813 (5,368 13,601 Total Data Processing 108,816 104,908 (3,908) 86,741 Total General Government 1,995,406 1,768,607 (226,799) 1,532,185 Public Safety Police Protection: Personal services 1,918,560 1,849,558 (69,002 1,690,333 Supplies 40,120 31,409 8,711 26,326 Services and other charges 172,198 166,985 5,213 142,861 Capital outlay 83,210 76,036 _7,174 62,500 Total Police Protection 2,214,088 2,123,988 (90,100) 1,922,020 Fire Protection: Personal services 246,511 240,081 (6,430 210,544 Supplies 17,300 16,403 (897 19,712 Services and other charges 30,205 27,984 �2,221 24,898 Capital outlay 14,550 12,877 _1,673, 149,198 Total Fire Protection 308,566 ___297,345 ___(11,221) ___404,352 -57- City of Brooklyn Center S_2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1988 next page) 1988 Actual Over or Under(-) 1987 Budget _Actual ____Budget ____Actual Public Safety (continued) Protective Inspection: Personal services $222,959 $210,926 ($12,033) $190,681 Supplies 1,000 1,122 122 1,322 Services and other charges 17,563 16,021 (1,542) 11,622 Capital outlay 725 738 13 4,582 Total Protective Inspection 242,247 ___228,807 ___(13,440) ___208,207 Emergency Preparedness: Personal services 48,008 45,727 (2,281� 40,842 Supplies 1,057 285 (772 815 Services and other charges 7,970 4,467 (3,503 5,655 Capital outlay 3,000 2,859 (141, Total Emergency Preparedness 60,035 ____53,338 ____(6,697) ____47,312 Animal Control: Personal services 6,506 6,838 332 6,412 Supplies 500 269 (231 Services and other charges 7,175 5,620 (1,555 5,976 Capital outlay 0� 10,494 Total Animal Control 14,181 12,727 (1,454) 22,882 Total Public Safety 2,839,117 2,716,205 (122,912) 2,604,773 Public Works Engineering Department: Personal services 384,750 365,006 (19,744 325,371 Supplies 5,100 3,718 (1,382� 4,580 Services and other charges 10,120 13,893 3,773 18,392 Capital outlay 14,200 _____9,894 ____(4,306) Total Engineering 414,170 392,511 (21,659) 348,343 Street Department: Personal services 482,598 452,257 (30,341� 429,600 Supplies 106,600 97,651 (8,949 98,660 Services and other charges 155,250 155,487 237� 104,662 Capital outlay 158,400 149,350 __(9,050) _95,594 Total Street 902,848 854,745 (48,103) 728,516 �i -s8- City of Brooklyn Center S-2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1988 next page) 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual Public Works (continued) Maintenance Shop: Personal services $141,913 $132,730 ($9,183 $127,687 Supplies 171,600 165,115 (6,485; 134,623 Services and other charges 60,900 71,292 10,392 63,686 Capital outlay 800 895 95 2,761 Total Maintenance Shop 375,213 370,032 (5,181) 328,757 Traffic Signals and Lights: Personal services 0 738 Supplies 900 26 (874 204 Services and other charges 171,000 ___151,604 ___(19,396_ ___145,974 Total Traffic Signals 171,900 151,630 (20,270) 146,916 Total Public Works 1,864,131 1,768,918 ___(95,213) 1,552,532 Community Health Services Health Regulation: Services and other charges 68,858 69,117 259 48,185 Total Health Inspection ____68,858 ____69,117 _______259 ____48,185 Total Community Health 68,858 69,117 259 48,185 Parks and Recreation Administration: Personal services 224,464 204,138 (20,326) 161,647 Supplies 6,200 6,923 723 5,090 Services and other charges 30,400 32,335 1,935 20,599 Capital outlay 7,000 6,659 (341) Total Administration 268,064 250,055 (18,009) 181,336 Adult Programs: Personal services 55 594 69 895 14 301 71 061 Supplies 49 735 56 318 6 583 42 235 Services and other charges 189,901 156,697 (33,204 181,710 Ca ital outla 500 107 393 200 P Y Total Adult Programs 295,130 283,017 (12,713) 295,206 -59- City of Brooklyn Center S_2 General Fund SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) (Continued For the Year Ended December 31, 1988 next page) 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual Parks and Recreation (continued) Teen Programs: Personal services $8,506 $7,414 ($1,092� $3,609 Supplies 575 480 (95 431 Services and other charges 3,300 2,521 (779 1,150 Capital outlay 650 650 0� 595 Total Teen Programs 13,031 11,065 (1,966) 5,785 Children's Programs: Personal services 49,163 49,519 356 41,661 Supplies 10,150 8,730 1,420) 8,247 Services and other charges 11,675 8,542 _3,133) 10,999 Total Children's Programs 70,988 66,791 (4,197) 60,907 General Programs: Personal services 30,633 31,086 453 23,041 Supplies 1,275 1,879 604 7,275 Services and other charges 53,758 43,667 (10,091� 42,687 Capital outlay 300 261 (39 898 Total General Programs 85 966 76,893 (9,073) 73,901 Community Center: Personal services 233,069 280,331 47,262 258,224 Supplies 40,050 45,939 5,889 46,357 Services and other charges 137,502 135,877 (1,625) 131,491 Capital outlay 103,908 35,596 (68,312) 53,007 Total Community Center 514,529 497,743 (16,786) 489,079 Park Maintenance: Personal services 331,143 302,400 (28,743) 287,662 Supplies 58,600 78,156 19,556 40,263 Services and other charges 93,900 87,820 6,080 76,743 Capital outlay 61,305 52,576 _8,729_ 81,019 Total Maintenance 544,948 520,952 (23,996) 485,687 Total Parks and Recreation 1,793,256 1,706,516 (86,740) 1,597,901 -60- i S_2 City of Brooklyn Center General Fund (Continued from SCHEDULE OF EXPENDITURES COMPARED TO BUDGET (GAAP BASIS) prior page) For the Year Ended December 31, 1988 1988 Actual Over or Under(-) 1987 Budget Actual Budget Actual Economic Development Convention Bureau Services and other charges __$175,000 __$162,271 ($12,729) Total Economic Development 175,000 162,271 (12,729) 0 Non_Departmental Expenditures not Charged to Departments: Personal services 179,902 161,274 (18,628 129,805 Supplies 19,000 16,404 (2,596 17,501 Services and other charges 272,795 131,242 (141,553 141,448 Capital outlay _____3,740 ____1,555 ____(2,185_ ____25,106 Total Non-Departmental 475,437 310,475 (164,962) 313,860 Total Expenditures $9,211,205 $8,502,109 _($709,096) $7,649,436 (See notes to financial statements) -61- I City of Brooklyn Center, Minnesota S��CIAL REVENUE FUNp� The Special Revenue Funds are establ ished 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 funetions 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 aecount- ing period in which the related liability is incurred. �corlomic pgyg�o��nent Autk��'�ty Fund: This Fund was establ ished to account for the Economic Development Authority (EDA) of Brooklyn Center. ��Si�r�� ��y�r��� �har��.g This Fund was establ ished to account for funds received under the "State and Local Fiseal Assistance Act of 1972" as amended in 1976. P��.��� �g���, oyg e� Rg��r����� T h i s F u n d w a s o r i g i n a 1 1 y established to account for the central collection of employer and employees' share to pay employee pension contributions under various pension programs. Pension contributions are now processed through each individual Fund. Diseased Tree Remoy�� Fund: This Fund was established to account for the collection of resources and expenditure of these resources for diseased tree control. �MR Lawcon Fund: This Fund was established to account for land and water conservation funds received from federal and state grants. Transfers are made from this Fund to the Capital Projects Fund where accounting for project costs takes place. Co�munity �gy��4,Pment B.�ock Grant Fund: The Fund was established to account for funds received under Titl e I of the Housing and Community Development Act of 197�. Transfers are made from this Fund to the Capital Projects Fund where accounting for project costs takes place. -62- City of Brooklyn Center B-1 Special Revenue Funds COMBINING BALANCE SHEET Year Ended December 31, 1988 Economic Public Diseased Community Development Employees Tree Development Authority Retirement Removal Block Grant 1988 1987 ASSETS Cash and investments $2,868,370 $746,946 $7,606 $13,482 $3,636,404 $3,309,929 Temporary improvement notes 89,686 22,476 112,162 104,126 Accounts receivable 145 2,983 3,128 1,835 Delinquent taxes 1,560 1,560 969 0 2 18 374 16 002 16 0 Deferred s ecial assessments P Delinquent special assessments 2,147 2,147 1,398 Due from other funds 253,367 253,367 70,734 Due from other governments 253,367 253,367 76,133 TOTAL ASSETS $3,213,128 $769,422 $28,738 $266,849 $4,278,137 $3,583,498 W LIABILITIES AND FUND BALANCE Liabilities Accounts payable $70,059 $70,059 $14,577 Due to other funds $253,367 253,367 70,734 Deferred revenue 1,560 $18,149 19,709 20,741 Advances from other funds 668,042 668,042 Total Liabilities 739,661 18,149 253,367 1,011,177 106,052 Fund Balances Unreserved 2,473,467 $769,422 10,589 13,482 3,266,960 3,477,446 Total Fund Balances 2,473,467 769,422 10,589 13,482 3,266,960 3,477,446 TOTAL LIABILITIES AND FUND BALANCES $3,213,128 $769,422 $28,738 $266,849 $4,278,137 $3,583,498 (See notes to financial statementsj City of Brooklyn Center B-2 Special Reve�ue Funds COMBINING STAtEMENT OF REVENUES, El(VENDI7URES, AND CHANGES IN PUND BALANCES BUDGET AND ACTUAL (Contirwed next pege) Year Ended Deeember 31, 1988 Economic Developnent Authority Federol Reverxx Shering Over Over Urxler( Utider( Reverwes Budget Actual Budget Budget Actuat Budget Property taxes f974,369 f986,637 514,268 lntergovernnental: Federal grants State grants 15,000 14,657 <343) Total Intergovernmental 15,000 14,657 <343) Charpes for serviee�: fees Admi�istrotive Total Charges for Services Miscellaneous: Investment eerninga 224,000 206,298 (17,702) f1,558 f1,798 f240 Other 32,687 32,488 1 I Totel Miscettaneous 256,487 238,786 (17,701) 1,558 1,798 240 Total Revenues 1,245,856 1,242,080 (3,776) 1,558 1,T98 260 Expenditures Perso�al serviees 0 Services end other eharges 750,046 670,971 (79,075) Totel Expenditures 750,046 670,971 <79,075) I Excess or Defieit(-) of Reverwes Over Experditures 495,810 571,109 75,299 1,558 1,798 240 Other Finenetnp Sourees or Uees(-) Operating transfers in 378,565 310,190 (68,375) operating transfers out (431,710> (1,026,918) (595,208> Total Other Pinaneing Sources of Uses(-) (53,145> <716,728) (663,583) I Exeess or Defieit(-) of Revenues and Sources Over Expenditures and Other Uses 462,665 (145,619) (588,284) 1,558 1,798 240 Fund Balances Jarwery 1 2,619,086 2,619,086 0 26,442 26,442 0 Equity Transfers Out (28,000) (28,240) (240) Fund Balances December 31 f3,061,751 52,473,467 (f588,284) f0 f0 f0 z�"::----- (See notes to finencial statements) City of Brooklyn Center B-2 Special Revenue Ftaids COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (Continued next page) Por The Year Ended December 31, 1988 Public Employees Retirement Fund Diseased Tree Removel Fund LCMR and Laucon Furd Over Over Over Under(-) Under(-) Urder(-) Budget Aetual Budget Budget Actual Budget Budget Actual Budget Revenues Vroperty taxes I ntergoverrnienta l Federal grants State grants Total intergovernmental Charges for services: Fees E49,000 E48,877 (E123) Administrative 4,500 4,700 200 Total Charges for Services 53,500 53,577 77 Miscellaneous: Investment eerni�gs t59,000 E58,190 (E810) 0 f7,000 f6,537 (E463) Other 0 10,500 10,211 t289) 0 Total Miseelteneous 59,000 58,190 (810) 10,500 10,211 (289) 7,000 6,537 (463) lr' Total Revenues 59,000 58,190 (810) 64,000 63,788 (212) 7,000 6,537 (463) Expenditures Personal services 5,000 4,674 Services and other eharges 60,000 59,130 (870) Total Expenditures 5,000 4,674 0 60,000 59,130 (870) Exeess or Defieieney of Revenuee Over Expenditures 54,000 53,516 (810) 4,000 4,658 658 7,000 6,537 (463) I Other Ftneneing Sourees or Uses(-) Operating tranafers in Operating transfers out Total Other Financing Sourees or Uses(-S I Exeess or Oeficiency of Revenues and Sources Over Expenditures and Other Uses 54.U00 53,516 (810) 4,000 4,658 658 7,000 6,537 (463) Furid ealanees January 1 715,906 715,906 0 5,931 5,931 0 97,899 97,899 0 Equity Transfers Out (104,899) (104,436) 463 Fund Balances December 31 f769,906 E769,422 (E810) E9,931 510,589 E658 EO EO EO (See notes to financial statements) I City of Brooklyn Center B-2 Special Revenue Funds COMBINING STATEMENT OF REVENUES, EXPENOITURES, ANO CNANGES IN FUND BALANCES BUDGET ANO ACTUAL (Continued from prior pege) Year Ended December 31, 1988 Cam�unity Development Block Grant fund Totals Over Over Under(-) 1988 1988 Under(-) 1987 Budget Actuat Budget Budget Actual Budget Actual Revenues-------._. Property taxea f976,369 5988,637 f14,268 f429,400 I nt ergoverrnienta l Federel grants f312,700 E312,774 E74 312,700 312,774 74 125,869 State grants 15,000 14,657 (343) 15,365 Total lntergovernmentat 312,700 312,774 74 327,700 327,431 (269) 141,234 tharges for serviees: Fees 49,000 48,877 (123> 35,357 Administrative 4,500 4,700 200 1,683 Total Charges for Services 53,500 53,577 77 37,040 Miseellaneous: Irnestment earnings 1,300 1,300 0 292,858 274,123 (18,735) 281,466 Other 0 62,987 42,699 (288) 75,550 I Totel Miscellaneous 1,300 1,300 0 335,845 316,822 (19,023> 357,016 I Toe�l Reverxies 314,000 314,074 74 1,691,416 1,686,467 (4,947) 964,690 Experxli turea Personal serviees 5,000 4,674 (326) 6.752 Services and other ehsrpes 810.046 TS0,101 <79.945) 664,233 Total Expenditures 815,046 734,775 (80,271) 670,985 Excess or Defieieney of Reverwes Over Expenditures 314,000 314,074 74 876,368 951,692 75,324 293,705 Other Finanein9 Sourees or Uses(-) Operating transfers i� 0 378,565 310,190 (68,375) 91,141 operating transfers out (314,000) (312,774) 1,226 (745,710) (1,339,692) (593,982) (563,167) Totat Other Finaneing Sources of Uses(-) (314,000) (312,774) 1,226 (36T,145) (1,029,502) (662,357) (472,026) Excess or Deficiency of Revernms arxl Sources Ove� Expenditures and Other Uses 0 1,300 1,300 509,223 (77,810> (587,033) (178,321) Fund Balances January 7 12,182 12,182 0 3,477,446 3,477,446 0 3,659,986 Equity Transfers Out (132,899) (132,676) 223 (4,219) Furxl ealanees December 31 E12,182 f13,482 51,300 f3,853,770 f3,266,960 (f586,810) f3,477,446 (See notes to financiel statements) City of Brooklyn Center, Minnesota DEBT S�RVIC� FUN� The Debt Serv ice Funds were establ ished 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 account- ing period in which the related liability is incurred, except for principal and interest which are recognized when due. The City's Debt Service funds included in this section are: �Cener�� Q����atiQn State �j,� S�eet Bonds Debt 8eryice: This Fund was established to account for the accumulation of resources, including a combination of state aid allotments and special assessments, for payment of principal and interest on bonds issued in 1970 to finance a comprehensive improvement and upgrading of those arterial streets qualifying as state aid routes. 14524 B�a��si�.�g �.�.�r4������ _sgr���� �_u�� Th i s Fu n d w a s established to account for the accumulation of resources for payment of principal and interest on general obl igation bonds authorized by the electorate in 1968 to finance construction of the Civic Center, Municipal Service Garage, East Fire Station, and the development of existing parks. BQ r�.�� 4� 14$Q Dg�� S�ry�,�� ��a�� T h i s F u n d w a s e s t a b 1 i s h e d t o account for the accumulation of resources for payment of principal and interest on general obligation bonds authorized by the electorate in 1980 to finance the improvement and eqipping of parks, parklands and related public recreational facilities. These improvements include neighborhood parks, Central Park, Palmer Nature Center, Shingle Creek Trailway and the Arboretum. G��g� a� ,Q�].�g a�.�4 n�.�X I n c�� m��� BQ r��� Q� 1Q8 3� F��� T h i s F u n d w a s established to account for the accumulation of resources for payment of principal and interest on general obl igation bonds issued in 1 983 to finance purchase of land and installation of utilities for housing for the elderly. ��.��r a� ��],�g a�.�4� I r��rg�7g37� B4��� 4� 14$� F�L�� T h i s Fu n d w a s established to account for the accumulation of resources for payment of principal and interest on general obl igation bonds issued in 1 985 to finance the purchase and redevelopment of the historic Earle Brown Farm in Brooklyn Center. -67- pebt S�,�vie� �unds continued Imoroy ement Bond Fun,�: These funds were established to account for the collection of special assessments for the payment of principal and interest on general obligation bonds. The bonds were sold periodical- ly to finance improvements deemed to benefit the properties against which the assessments are 1 ev ied. Refundin� Bonds 1987 Fun�: This fund was established to account for the collection of special assessments for the payment of prin- cipal and interest on general obligation bonds. The bonds were sold during 1987 to refund Improvement Bonds of 1982. -68- City of Brooklyn Center C-1 Debt Service Funds COPI6INING BALANCE SHEET December 31, 1988 1969 Bldg Park Tax Incre- Tax Incre- improvement Improvement Refunding Totals Improvement Bonds ment eonds ment Bonds Bonds of eonds of Bonds of Bonds of 1980 of 1983 of 1985 1970 1976 1987 1988 1987 ASSETS Cash and investments 5497,171 5238,648 5546,368 5420,827 $664,082 5490,655 $657,695 53,515,446 $3,199,786 Temporary improvement notes 15,589 17,132 13,195 20,822 15,384 20,622 102,744 80,760 Accounts receivable 0 82,768 Taxes receivable 3,648 3,875 7,523 4,769 Special assessments receivable: Deferred 6,283 72,345 1,320,158 1,398,786 1,644,448 Delinquent 5,341 3,028 36,180 44,549 37,881 TOTAL ASSETS 5516,408 5242,523 5563,500 5434,022 5696,528 5581,412 52,034,655 $5,069,048 $5,050,412 I I rn LIABILITIES AND FUND BALANCES Liabilities Accounts payable 5987 5987 $3,017 I Deferred revenue 53,648 53,875 511,624 $75,373 51,356,338 1,450,858 1,687,098 Total Liabilities 3,648 3,875 987 11,624 75,373 1,356,338 1,451,845` 1,690,115 I I Fund Balance Reserved 512,760 238,648 562,513 5434,022 684,904 506,039 678,317 3,617,203 3,360,297 Total Fund Balances 512,760 238,648 562,513 434,022 684,904 506,039 678,317 3,617,203 3,360,297 TOTAL LIABILITIES AND fUND BALANCES 5516,408 5242,523 5563,500 5434,022 5696,528 $581,412 52,034,655 E5,069,048 55,050,412 (See notes to financial statements) City of Brooklyn Center C-2 Debt Service Funds COMBINING STATEMENT Of REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 1988 State Aid 1969 Bldg 8 Park Tax Incre- Tax Incre- Improvement Street Improvement Bonds ment Bonds ment Bonds Bonds of Bonds Bonds _of of 1983 _of_7985 Revenues Property taxes 5140,975 8151,656 5762,496 Special assessments 513,557 Intergovenmental revenue: State grant Homestead credit 34,166 36,766 20,700 Investment earnings 40,429 10,022 33,996 522,822 70,801 Other Total Revenues 275,570 198,444 217,192 22,822 24,352 Expenditures Principal 560,000 750,000 90,000 60,000 20,000 Interest 14,160 19,500 86,020 67,963 470,725 1,300 Fiscal agent fees 229 145 235 987 474 106 Other 293 Total Expenditures 74,389 169,645 176,255 128,950 411,199 21,699 Excess or Deficiency of Revenues Over Ex nditures (74,389) 22,189 ____88,242 (388,377) 2,653 Other Financing Sources or Uses(-) Sale of bonds Operating transfers in 74,389 431,710 Payment to escrou agent Total Other Financing Sources or Uses(-) ___431,710 Excess or Deficiency of Revenues and Other Sources over Expenditures 45,925 22,189 88,242 43,333 2,653 Fund Balances January 1 0 466,835 216,459 474,271 390,689 130,870 Equity Transfers In/Out(-) (133 523) Fund Balances December 31 SO 5512,760 5238,648 5562,513 5434,022 SO (See notes to financiat statements) -70- City of Brooklyn Center C-2 Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPEND[TURES, AND CHANGES IN FUND BALANCES Year Ended December 31, 1988 Improvement Improvement Refunding Totals BorxJs of Bonds of BorxJs of 1970 1976 1987 1988 1987 Revenues Property taxes S455,127 5425,765 Special assessments 58,388 553,268 5348,338 423,545 491,415 Intergoverwnental revenue: State grant Homestead credit 91,632 97,381 Investment earnings 52,861 35,931 34,422 241,284 336,866 Other 3,017 3,017 4,467 Total Revenues ____61,249 ____89,199 ___385,777 1,214,605 1,355,894 Expenditures Principal 20,000 60,000 780,000 640,000 7,304,925 Interest 2,700 11,070 69,123 682,561 930,252 Fiscal agent fees 359 31 567 3,133 31,377 Other 725 347 3,216 4,581 56,296 Total Expenditures 23,784 71,448 252,906 1,330,275 2,322,850 Excess or Deficiency of Revenues Over Ex nditures 37,465 17,751 132,871 (115,670) (966,956) Other Financing Sources or Uses(�) Sale of bonds 0 1,200,000 Operating transfers in 506,099 405,255 Payment to escrow agent (1,770,075) Total Other Financing Sources or Uses(-) 506,099 ___435,180 Excess or Deficiency of Revenues and Other Sources over Expenditures 37,465 17,751 132,871 _390,429 (531,776) Fund Balances January 1 647,439 488,288 545,446 3,360,297 5,411,061 Equity Transfers In/Out(-) (133,523) (1,518,988) Furx! Balances December 31 5684,904 5506,039 5678,317 53,617,203 53,360,297 (See notes to financial statements) -71- Cit B y of rooklyn Center, Minnesota CAPI'��L .�ROJ�C,�� FUN1�S The Capital Projects Funds are established to account for all resourc- es used for the construction or acquisition of capital facilities by the City except those financed by Enterprise Funds. This fund type util izes 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 account- ing period in which the rel ated 1 iabil ity is incurred. The City's Capital Projects Funds included in this section are: C�,oita,� ImnrQyeme�,t� F�.�; This Fund was establ ished in 1 g68 to pro- vi�e 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. I Mun� State Aid �or Con�t�ructio� F��d; This Fund was establ ished to account for the state allotment of gasoline tax collections used I for transportation related construction projects. S��i�� �sessmer�t Co.pst�ruction Fund: This Fund was established to account for the resources and expenditures required for the acquisi- tion and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefited properties. -72- City of Brooklyn Center D-1 Capital Projects Funds COMBINING BALANCE SHEET December 31, 1988 Municipal Special Capital State Aid Assessment Improvements for Construction Fund Construction Fund 1988 1987 ASSETS Cash and investments 53,385,935 53,456,441 5109,891 $6,952,26Z 56,652,743 Temporary improvement notes 106,167 108,378 214,545 200,033 Accounts receivable 4,540 4,540 7,570 Special assessments: Deferred 6,875 754,936 761,811 422,638 Delinquent 7,104 6,298 13,402 8,03T Due from other funds 25,000 25,000 Due from other goverriments 1,641 1,464,726 1,466,367 1,612,884 Interfund loans: Municipal liquor 261,810 261,810 274,419 Golf course 1,100,000 1,100,000 Economic development authority 593,069 2,139 595,208 TOTAL ASSETS 54 55 5873_264 S11_394 59,178,324 LIABILITIES AND FUND BALANCE Liabilities Accounts payable 52,204 5381 55,462 58,047 E60,126 Temporary improvement notes 859,610 859,610 679,228 Deferred revenue 13,979 761,234 775,213 430,675 Total liabilities 16,183 387 1,626,306 1,642,870 1,170,029 Fund Balances Reserved: Unexpended appropriations 28,205 28,205 49,809 State approved projects 2,205,510 2,205,510 2,022,872 Advances to other funds 1,361,810 593,069 2,139 1,957,018 Unreserved 3,492,874 2,823,654 (755,181> 5,567,347 5,935,614 Total Fund Balances 4,882,889 5,622,233 (753,042) 9,752,080 8,008,295 TOTAL LIABILITIES AND FUND BALANCES $4,899,072 55,622,614 $873,264 511,394,950 $9,178,324 (See notes to financial statements) -73- City of Brooklyn Center D�2 Capitat Projects Fund COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 1988 Municipal Speciat Capital State Aid Assessment Totals Irtq�rovements for Construction Fund Construction Revenues Special assessments 52,548 5152,677 5155,225 586,004 I ntergoverrxnenta l State grants E612,819 612,819 555,636 Investment earnings 334,547 246,363 25,065 605,975 497,398 Sale of land 188,130 Reimtwrsement of prior year�s construction expenditures 1,100,000 1,100,000 Other 72,440 Total Revenues 1,437,095 861,026 250,182 2,548,303 1,330,968 Expenditures Other services 338 43,075 43,413 41,418 Capital outlays 1,115,293 1,274,595 1,898,210 7otal Expenditures 102,407 57,233 1,158,368 1,318,008 1,939,628 1 Excess or Deficiency of Revenues Over Expenditures 1,334,688 803,793 (908,186) 1,230,295 (608,660) Other Financing Sources of Uses(-) Operating transfers in 897,976 596,770 1,494,746 376,453 Operating transfers out (227,876) (686,431) (304,907) (1,219,214) (366,570) Total Other Financing Sources or Uses(-) (227,876) ___211,545 275,532 9,883 Excess or Deficiency of Revenues and Other Sources Over Expenditures and Other Uses 1,106,812 1,015,338 (616,323) 1,505,827 (598,777) fund Balance January 1 3,538,118 4,606,895 (136,719) 8,008,294 7,083,864 Equity Transfers In 237,959 237,959 1,523,207 Fund Balance December 31 S4_882_889 S5_622_233 _(5753 59 S8_008-294 (See notes to financial statements) -74- City of Brooklyn Center S-3 Capital Improvements Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1988 Project Overexpended(-) 1988 to Date Unexpended Type of Project Appropriations Expenditures Expenditures Appropriations u Centerbrook Improvements $26,900 $10,230 $10,230 $16,670 Centerbrook Golf course 1,786,409 55,139 1,786,409 0 Replat I-94 property 33,000 19,065 19,065 13,935 Flood plain acquisition 894 894 894 0 Community Center improvements 363,045 16,741 372,873 (9,828) $2,210,248 $102,069 $2,189,471 $20,777 (See notes to financial statements) I i r r i A r City of -Brooklyn Center S-4 Municipal State Aid Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1988 Project Overexpended(-) 1988 to Date Unexpended Project Number Appropriation Expenditures Expenditures Appropriations Street impr. 69th Ave 87-08 $60,000 $43,293 $59,435 $565 rn Camden Ave sidewalk 87-10 53,234 4,121 41,580 11,654 Miscellaneous sidewalks 88-14 8,550 9,438 9,438 (888) Humbolt Ave sidewalks 88-17 3,962 3,962 North Lilac Dr Trailway 88-19 3,900 3,900 Signal at S.C.P. Freeway 88-25 7,250 381 381 6,869 Totals $136,896 $57,233 $110,834 $26,062 (See notes to financial statements) City of Brooklyn Center S-5 Special Assessment Construction Fund PROJECT-LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 1988 Project Overexpended(-) Project 1988 to Date Unexpended Type of Project Number Apropriations Expenditures Expenditures Appropriations Street impr. 69 70th Ave 86-10 $365,109 $5,969 $275,665 $89,444 Halifax storm sewer 87-22 22,359 20,027 22,650 (291) Logan Ave reconstruction 88-04 533,455 512,581 512,581 20,874 France Ave reconstruction 88-05 293,666 279,213 280,213 13,453 Lakebreeze Ave reconstruction 88-06 194,142 186,723 186,723 7,419 50th Ave reconstruction 88-07 112,725 109,788 109,788 2,937 West River Road 66th to 73rd 88-18 59 59 (59) Brookdale Square Signal 88-24 933 933 (933) $1,521,456 $1,115,293 $1,388,612 $132,844 (See notes to financial statements) r i S e City of Brooklyn Center, Minnesota �NTER,�RIS� FUN� The Enterprise Funds were established to account for fehe financing of self-supporting activities of the City which render services on a user eharge basis to the general public. Revenues and expenses in these Funds are recognized on the accrual basis of accounting. Revenues are recogniz�d 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: �unicig�� �auor �i�: This Fund was established to account for the operations of the City's three municipal off-sale liquor stores. �p��� ���it�g� Fund: This Fund was established to account for the operations of the City owned water and sanitary sewer systems. Course Fund: This fund was established to account for operations of the City owned golf course. w -7s- City of Brooklyn Center Enterprise Funds COMBINING BALANCE SHEET December 31, 7988 Municipal Public Golf Totals Liquor Utilities Course Furx1 Furxl Fund 1988 1987 ASSETS Current Assets Cash and investments 5158,578 E3,824,452 E11,539 53,994,569 53,621,211 Tertiporary improvement notes 246,969 246,969 116,352 Accounts receivable net 5,692 115,060 120,752 105,227 Accrued revenue 223,968 223,968 217,826 Assessments receivable: Deferred 93,599 93,599 111,224 Delinquent 3,341 3,347 3,209 Due from other goverrnients 159,918 159,978 227,343 Inventories 246,232 10,556 4,948 261,736 269,738 Prepaid expenses 19,846 90,705 110,551 113,296 Total Current Assets 430,348 _4,768,568 ____16,487 _5,215,403 _4,785,426 Restricted Assets Temporary investments 4,000,000 4,000,000 4,000,000 Debt retirement investments 127,020 127,020 128,775 Total Restricted Assets 4,127,020 4,127,020 4,128,775 Fixed Assets Mains and lines 72,538,561 12,538,561 12,538,561 Structures 216,547 3,696,673 306,021 4,219,241 3,768,352 Equipment 161,844 394,316 93,676 649,836 510,758 Land 100,878 25,378 1,390,402 1,516,598 125,694 Land improvements 5,898 15,495 27,393 5,898 Leasehold improvements 39,670 39,670 39,670 524,837 16,654,868 1,805,594 18,985,299 76,988,933 Less: Allowance for depreciation 162,214 4,775,335 20,449 4,957,998 4,669,742 Total Fixed Assets 11,879,533 1,785,145 14,027,301 12,319,791 TOTALS 5792,971 520,775,121 E1,801,632 523,369,724 521,233,992 (See notes to financial statements) -79- F1 Municipal Public Golf Totals Liquor Utiiities Course Fund Fund fund 1988 1987 LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS Curre�t Liabilities Accounts payable 5143,873 5145,793 51,756 5291,422 5116,992 Due to other funds 25,000 25,000 Accrued salaries payable 8,938 9,911 1,468 20,317 75,544 Accrued vacation and sick pay 10,020 76,681 1,450 28,151 21,349 Current portion of long-term debt 13,723 45,000 58,723 57,609 Total Current Liabilities 176,554 217,385 29,674 ___271,494 Long-Term Liabilities Construction loan 248,087 7,700,000 1,348,087 261,810 Revenue bonds 135,000 135,000 180,000 Total Long-term Liabilities __248,087 135,000 1,100,000 7,483,087 441,810 Fund Equity Contributions 10,616,086 686,409 11,302,495 10,616,086 Retained earnings: Reserved: Debt retirement 127,020 727,020 128,775 Restricted assessments 96,940 96,940 171,224 Plant expansion 4,000,000 4,000,000 4,000,000 Working capital 620,000 620,000 620,000 Unreserved _368,330 4,962,690 5,316,569 5,704,603 Total Retained Earnings 368,330 9,806,650 (14,451) 10,160,529 9,964,602 Total Pund Equity 368,330 20,422,736 671,958 21,463,024 20,580,688 TOTALS 5792,977 820_775,121 S1_801,632 S23_369,724 S21_233,992 (See notes to financial statements) -80- City of Brooklyn Center F-Z Enterprise Funds COMBINING STATEMENT Of REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1988 Municipal Public Golf Totals liquor Utilities Course Fund f�xid Fund 1988 1987 Operating Revenues Sales and user fees 52,583,594 51,899,586 5206,964 54,690,144 54,180�583 Cost of sales 1,977,728 23,126 2,000,854 1,930,254 Gross Margin 605,866 1,899,586 183,838 2,689,290 2,250,329 Operating Expenses Personal services 246,975 309,929 81,217 638,721 499,670 Supplies 9,829 142,467 17,565 169,855 126,857 Other services 92,672 1,241,574 13,917 1,348,103 1,065,024 Insurance 35,758 11,056 3,953 50,767 37,918 Utilities 32,946 157,271 8,230 198,447 160,085 Rent 27,507 185,337 212,844 207,920 Depreciation 11,392 327,751 20,449 359,592 257,465 Total Operating Expenses 457,079 2,375,319 2,9T7,729 2,354,939 Operating lncome 148,787 (475,733) 38,507 (288,439) (104,610) Nonoperating Revenues or Expenses(�) Investment earnings 9,084 628,015 7,919 639,018 636,183 Special assessments 12,936 72,936 39,389 Other revenue or expense(-) 708 8,312 123 9,143 8,232 Interest and fiscal agent fees (22,842) (8,889) (55,000) (86,73 U (34,652) Nonoperating Totals (13,050) 640,374 ___(52,958) 574,366 Income Before Operating Transfers 164,647 ___285,927 ___544,542 Operating Transfers Out(-) (90,000> ___(90,000) (710,000) Net Income 45,737 164,641 (14,451) 195,927 434,542 Retained Earnings danuary 1 322,593 9,642,009 0 9,964,602 9,530,060 Retained Earnings December 31 5368_330 59,806,650 (514 451) 510,160,529 E9,964,602 (See notes to financial statements) -81- City of Brooklyn Center F-3 Enterprise Funds COMBINING STATEMENT OF CHANGES IN FINANCIAL POSITION For the Year Ended December 31, 1988 Municipal Public Golf Totals Liquor Utilities Course Fund Fund_ Fund___ 7987 Sources of Financial Resources Operations: Net income for year 545,737 5164,641 (514,451) E795,927 5434,542 Add: Items not requiring current outlay- depreciation 11,392 327,751 20,449 359,592 257,465 Total Resources Provided By Operations 57,129 492,392 5,998 555,519 692,007 Contributions touard construction 1,786,409 1,786,409 19,106 Decrease in restricted assets 1,T55 18,090 Total Sources 57,129 494,147 1,792,407 2,343,683 729,203 Uses of Pinancial Resources Purchase of properties 37,922 223,586 7,805,594 2,067,102 655,007 Debt retirement 73,723 45,000 58,723 57,609 Total Uses 51,645 268,586 1,805,594 2,125,825 712,616 NeY, Increase or Decrease(-) in .4lorking Capital $5,484 5225,561 (573,187) 5217,858 516,587 Elwnents of Increase or Decrease(-) in Working Capital Cash and investments 586,838 5274,981 511,539 5373,358 (S274,370> Temporary improvement notes 130,617 130,677 116,352 Accounts receivable 3,174 12,471 15,525 (7,907> Accrued revenue 6,142 6,142 24,451 Assessments receivable (1T,493) (17,493) 15,726 Due from other goverrrnents (67,425) (67,425) (52,392) Inventories (72,627) (323) 4,948 (8,002> (2,796> Prepaid expense (14,128) 11,383 (2,745> 32,058 Accoimts payable (52,666) (120,008) (7,756) (174,430) (20,732) Contracts payable 0 134,239 Due to other funds (25,000) (25,000) 36,363 Accrued liabilities (3,933> (4,724) (2,918) (11,575) 16,619 Current portion of long-term debt (1,114) (7,114) (1,024) Net Increase or Decrease(-) In Working Capital 55,484 E225,561 (513,187) E217,858 516,587 (See notes to financial statements) -82- City of Brooklyn Center F_4 Municipal Liquor Fund STATEMENT -0F REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS Year Ended December 31, 1988 Year Ended December 31, 1988 1987 Sales Liquor $806,608 $784,209 Beer 1,344,281 1,288,929 Wine 364,220 386,369 Soft drinks 48,756 48,822 Other merchandise 19,729 18,830 Total Sales 2,583,594 2,527,159 Less: Cost of Sales 1,977,728 1,930,254 Gross Margin ___605,866 ___596,905 Operating Expenses Personal services 246,975 247,443 Supplies 9,829 10,366 Other services g2�('72 �g��gg Insurance 35,758 29,699 Utilities 32,946 23,727 Rent 27,507 26,536 Depreciation 11,392 16,752 Total Expense 457,079 434,311 Operating Income 148,787 162,594 Non Operating Revenue or Expense(-) Investment earnings 9,084 6,539 Other revenue of expense(-) 708 379 Interest and fiscal agent fees (22,842) (23,866) (13,050) (16,948) O perating Transfers to General Fund 90,000 110,000 Net Income 45,737 35,646 Retained Earnings January 1 322,593 286,947 Retained Earnings December 31 $368,330 $322,593 (See notes to financial statements) -83- City of Brooklyn Center Public Utilities Fund BALANCE SHEET December 31, 1988 Totals Water Sewer Accounts Accounts ___1988___ ___1987__ ASSETS Current Assets Cash and investments $898,151 $2,926,301 $3,824,452 $3,549,471 Temporary improvment notes 58,000 188,969 246,969 116,352 Accounts receivable net 34,668 80,392 115,060 102,649 Accrued revenue 67,490 156,478 223,968 217,826 Assessments receivable: Deferred 93,599 93,599 111,224 Delinquent 3,341 3,341 3,209 Due from other governments 159,918 159,918 227,343 Inventories 10,556 10,556 10,879 Prepaid expenses ____90,705 ____90,705 ____79,322 Total Current Assets 1,165,805 3,602,763 4,768,568 4,418,275 Restricted Assets Temporary investments 3,700,000 300,000 4,000,000 4,000,000 Debt retirement investments 127,020 127,020 128,775 Total Restricted Assets 3,827,020 300,000 4,127,020 4,128,775 Fixed Assets Mains and lines 7,570,370 4,968,191 12,538,561 12,538,561 Structures 2,657,486 1,039,187 3,696,673 3,551,805 Equipment 197,158 197,158 394,316 353,788 Land 25,318 ____25,318 ____24,816 10,450,332 6,204,536 16,654,868 16,468,970 Less: Allowance for Depreciation 2,660,850 2,114,485 4,775,335 4,485,272 Total Fixed Assets 7,789,482 4,090,051 11,879,533 11,983,698 TOTALS $12,782,307 $7,992,814 $20,775,121 $20,530,748 (See notes to financial statements) -84- F_5 Totals Water Sewer Accounts Accounts 1988 1987 LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS Current Liabilities Accounts payable $72,897 $72,896 $145,793 $25,785 Accrued salaries payable 4,955 4,956 9,911 7,758 Accrued vacaton and sick pay 8,341 8,340 16,681 14,110 Current portion of long-term debt ____45,000 ____45,000 ____45,000 Total Current Liabilities 131,193 86,192 217,385 92,653 Long_Term Liabilities Revenue Bonds 135,000 135,000 180,000 Total Long-Term Liabilities 135,000 ___135,000 ___180,000 Fund Equity Contributions _4,997,510 _5,618,576 10,616,086 10,616,086 Retained Earnings: Reserved• Debt Retirement 127,020 127,020 128,775 Restricted assessments 96,940 96,940 111,224 Plant expansion 3,700,000 300,000 4,000,000 4,000,000 Working capital 170,000 450,000 620,000 620,000 Unreserved 3,424,644 1,538,046 4,962,690 4,782,010 Total Retained Earnings 7,518,604 _2,288,046 _9,806,650 _9,642,009 Total Fund Equity 12,516,114 7,906,622 20,422,736 20,258,095 TOTALS $12,782,307 $7,992,814 $20,775,121 $20,530,748 -85- City of Brooklyn Center F-6 Public Utilities Fund SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1988 Water Sewer ---------Totals--------- Accounts Accounts 1988 1987 Operating Revenue Service to consumers $681,872 $1,181,378 $1,863,250 $1,632,914 Service hook-up charges 6,741 6,741 6,704 Sale of ineters (net) 1,386 1,386 5,950 Penalties 4,655 23,554 28,209 7,856 Total Operating Revenue _694,654 1,204,932 _1,899,586 _1,653,424 i Operating Expenses 924,722 _1,450,597 _2,375,319 _1,920,628 Operating Income or Loss(-) (230,068) (245,665) (475,733) (267,204) Nonoperating Revenues or Expenses(-) Investment earnings 366,642 261,373 628,015 629,644 Special Assessments 6,468 6,468 12,936 39,389 Metro Waste Control Comm. 6,361 6,361 6,534 Other 1,951 1,951 1,319 Interest and fiscal fees __(8,889) __(8,889) ___(10,786) Total Nonoperating 366,172 274,202 640,374 666,100 Net Income 136,104 28,537 164,641 398,896 Retained Earnings January 1 _7,382,500 _2,259,509 _9,642,009 _9,243,113 Retained Earnings December 31 $7,518,604 $2,288,046 $9,806,650 $9,642,009 (See notes to financial statements) -86- i r City of Brooklyn Center S-6 Public Utilities Fund SCHEDULE OF WATER OPERATING EXPENSE For the Year Ended December 31, 1988 _______________Classification by Function Year Ended December 31, Source of Admin- Customer Supply Transmission istration Accounting 1988 1987 Personal Services: Salaries and wages $41,344 $60,790 $58,940 $31,755 $192,829 $137,585 Payroll taxes 13,588 13,588 11,841 Employee benefits 9,2�6 9,276 9,827 41,344 60,790 81,804 31,755 215,693 159,253 Supplies and material 107,240 11,614 1,766 341 120,961 100,796 Heat, light and power: Electricity 136,329 641 136,970 117,334 Gas 4,414 1,076 5,490 3,933 140,743 1,717 142,460 121,267 I Contractual Services: Professional services 15,439 2,902 800 936 20,077 3,186 I Postage 11,307 11,307 10,617 I Insurance 5,528 5,528 3,915 I, Repairs and maintenance 22,727 28,690 9,583 61,000 (14,217) Rent and administration 98,668 98,668 90,692 nt 1 376 4 208 15 lll 19 701 13 865 E ui ment re a q P 38,166 31,968 118,787 27,360 216,281 108,058 Depreciation 133,512 95,815 229,327 149,672 Totals $461,005 $201,904 $202,357 $59,456 $924,722 $639,046 (See notes to financial statements) City of Brooklyn Center S-7 Public Utilities Fund SCHEDULE OF SEWER OPERATING EXPENSE For the Year Ended December 31, 1988 Classification by Function Year Ended December 31, Disposal and Admin- Customer Pumping Transmission istration Accounting 1988 1987 Personal Services: Salaries and wages $27,023 $26,768 $17,582 $71,373 $71,306 Payroll taxes 13,588 13,588 11,841 Employee benefits 9,276 9,276 9,827 27,023 26,768 40,446 94,237 92,974 Supplies and material 11,077 10,231 193 21,501 15,695 Heat, light and power Electricity 14,452 14,452 14,817 Gas 358 358 264 14,810 14,810 15,081 Contractual Services: Professional services 3,171 3,171 1,461 Postage $3,537 3,537 2,880 Insurance 5,528 5,528 4,304 Repairs and maintenance 3,129 8,830 4,384 16,343 3,524 Rent and administration 98,668 98,668 90,692 Equipment rental 4,208 14,469 18,677 13,865 Metro Waste Control Commission 1,049,939 1,049,939 926,083 City of Brooklyn Park 25,732 25,732 23,982 1,078,800 8,830 115,959 18,006 1,221,595 1,066,791 Depreciation 48,772 49,682 98,454 91,041 Totals $1,180,482 $95,511 $156,598 $18,006 $1,450,597 $1,281,582 (See notes to financial statements) s� r■r r r wr a� +r F_7 City of Brooklyn Center Golf Course Fund STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 1988 Sales Green fees $162,531 Rentals 7,688 Leagues 1,712 Concessions 16,968 Merchandise 14,328 Pop machine 3,379 Miscellaneous 358 Total Sales ___206,964 Less: Cost of Sales 23,126 Gross Margin 183,838 Operating Expenses Personal services 81,217 �upplies 17,565 Other services 13,917 Insurance 3,953 Utilities 8,230 Depreciation ____20,449 Total Expense 145,331 Operating Income 38 507 Non Operating Revenue or Expense(_) Investment earnings 1,919 Other revenue of expense(-) 123 Interest and fiscal agent fees (55 000) Total Non Operating (52 958) Net Income (14,451) Retained Earnings January 1 p Retained Earnings December 31 ($14 451) (See notes to financial statements) -89- 1 1 City of Brooklyn Center, P�Iinnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, and which are tangible in nature, have a life longer than the current fiscal year, and have a significant value. Depreciation is not recorded on those assets. _90_ City of Brooklyn Center S-8 SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 1988 Balance Balance January 1, December 31, 1988 Acquisitions Disposals 1988 Investments in General Fixed Assets (At cost) Land $1,427,531 $1,465,868 $2,893,399 Buildings and improvements 6,008,115 99,021 $1,851,422 4,255,714 Park improvements 3,992,419 10,740 945,843 3,057,316 Furniture 470,747 97,640 568,387 Departmental equipment _4,091,895 ___242,480 ___895,026 _3,439,349 Total Investments in General Fixed Assets $15,990,707 $1,915,749 $3,692,291 $14,214,165 Sources of Investments General Indebtedness $600,491 $138,984 $461,507 General Fund revenues 5,599,412 $362,880 690,765 5,271,527 Liquor store income 304,571 70,424 234,147 Contributions 327,398 75,640 251,758 Capital projects funds: G.O. bonds 3,129,798 3,129,798 I Tax levies 265,243 48 527 216,716 Sale of assets 156,654 28,495 128,159 Debt Service Funds excess 198,386 36,254 162,132 Capital Projects Fund Balance 3,966,963 1,524,629 2,269,892 3,221,100 Federal grants 1,120,182 28,240 258,982 889,440 State grants 321,609 74,328 247,281 Total Sources of Investments $15,990,707 $1,915,749 $3,692,291 $14,214,165 (See notes to financial statements) _9, r i �1 S-9 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 1988 Other Function Land Buildings Improvements Equipment Total General government $293,940 $293,940 Government buildings $245,712 $4,036,721 61,421 4,343,854 Public safety 1,740,474 1,740,474 Public works 1,262,773 1,262,773 N Recreation 207,840 207,840 Parks 1,722,687 218,993 $3,057,316 429,002 5,427,998 Economic Development Authority 925,000 12,286 937,286 Totals $2,893,399 $4,255,714 $3,057,316 $4,007,736 $14,214,165 (See notes to financial statements) I City of Brooklyn Center, Minnesota GEN�RAL LONG-TERM �B� ACCOUN� GROU� The General Long-Term Debt Account Group was establ ished 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. -93- I G City of Brooklyn Center COMPARATIVE SCHEDULE OF GENERAL LONG-TERM DEBT December 31, 1988 December 31, Amounts Available and to be Provided Amounts available in Debt Service Funds $3,617,203 $3,360,297 Amounts to be provided: From future tax levies 201,293 831,152 From future tax increments 5,063,465 5,255,040 From future gas tax allocations ___180,000 ___240,000 Total Available and to be Provided $9,061,961 $9,686,489 General Long-Term Debt Payable General Obligation Bonds $1,440,000 $1,740,000 Special Assessment Bonds 1,220,000 1,500,000 Tax Increment Bonds 6 060 000 6 120 000 Sick and vacation accruals 341,961 326,489 Total General Long-Term Debt $9,061,961 $9,686,489 (See notes to financial statements) I I -94- City of Brooklyn Center H SUMMARY Of DEBT SERVICE REQUIREMENTS TO MATURITY Decernber 31, 1988 G.O. Special G.O. Tax General Obligation Bonds Assessment Bonds Increment Bonds Water Revenue Bonds Debt Service Requirement Year Principal Interest Principal Interest Principal Interest Principal [nterest Principal Interest 1989 $310,000 $98,795 5250,000 553,385 575,000 5473,888 545,000 57,020 5680,000 5633,088 1990 180,000 77,175 225,000 41,979 125,000 466,838 45,000 5,265 575,000 591,257 1991 340,000 58,445 215,000 31,775 135,000 457,650 45,000 3,510 735,000 551,380 1992 300,000 34,810 145,000 23,260 200,000 445,488 45,000 1,755 690,000 505,313 1993 310,000 11,780 110,000 17,158 240,000 429,282 660,000 458,220 i 1994 100,000 11,912 285,000 409,685 385,000 421,597 1995 85,000 7,131 340,000 385,957 425,000 393,088 1996 50,000 3,550 420,000 356,416 470,000 359,966 1997 40,000 1,100 420,000 323,325 460,000 324,425 1998 430,000 289,780 430,000 289,T80 1999 510,000 252,395 510,000 252,395 2000 595,000 208,195 595,000 208,195 2001 690,000 156,795 690,000 156,795 2002 795,000 96,997 795,000 96,997 2003 800,000 32,400 800,000 32,400 E1,440,000 5281,005 E1,220,000 E191,250 56,060,000 E4,785,091 E180,000 517,550 58,900,000 55,274,896 I I City of Brooklyn Center, P�innesota STATISTICAL SECTION The statistical section presents comparative statistical data for the past ten years, and other pertinent information involving taxes, re venues, expenditures, bonded debt, property valuations, insurance coverages and miscellaneous statistics. This information is intended to be useful and of interest to investors in City bonds, financial institutions, and others interested in municipal government financial statistics. With the exception of Table 9(Computation of Direct and Overlapping Debt) and information concerning school districts in the Nliscellaneous Statistical Facts section, all statistical information sources were internal City records. The source of Table 9 information was the Hennepin County Department of Finance. The sources of school district information were the various school districts. I -96- City of Brooklyn Center TABLE 1 GENERAL GOVERNMENTAL EXPENDITURES AND OTHER USES BY FUNCTION (1) Last Ten Fiscal Years Community Fiscal General Public Public Health Parks and Economic Non- Transfers Total Year Government Safety Works Services Recreation Development Departmental Out Expenditures 1979 $688,539 $1,317,938 $883,870 $48,576 $851,684 $227,486 $4,018,093 1980 839,307 1,442,619 1,103,166 37,336 917,224 241,256 $490,000 5,070,908 1981 910,131 1,588,149 1,176,447 39,385 1,162,878 197,790 $250,000 5,324,780 1982 1,007,781 1,901,839 1,213,941 36,244 1,122,299 247,755 5,529,859 1983 1,054,064 1,875,122 1,288,081 28,663 1,268,907 91,953 5,606,790 1984 1,112,173 1,985,108 1,383,039 30,437 1,319,298 337,624 6,167,679 1985 1,283,050 2,143,843 1,560,842 34,326 1,389,075 416,937 6,828,073 1986 1,487,876 2,288,062 1,549,584 45,294 1,405,020 378,688 7,154,524 1987 1,532,185 2,604,773 1,552,532 48,185 1,597,901 313,860 7,649,436 1988 $1,768,607 $2,716,205 $1,768,918 $69,117 $1,706,516 $162,271 $310,475 $8,502,109 (1) Funds included in this table are the General Fund. �r w� r .�r �r •�r +�.r �•r a.� r,� City of Brooklyn Center TABLE 2 GENERAL GOVERNMENTAL REVENUES AND OTHER FINANCING SOURCES BY SOURCE (1) Last Ten Fiscal Years General Fiscal Property Licenses Intergovern- Charges for Fines and Transfers Total Year Taxes Permits mental Services Forfeitures Misc. In Revenue 1979 $2,131,443 $186,464 $1,298,545 $465,885 $82,466 $135,889 $650,527 $4,951,219 1980 2,188,218 195,931 1,496,924 451,688 111,382 300,338 434,243 5,178,724 1981 1,655,642 207,100 2,388,848 728,828 111,596 188,284 544,965 5,825,263 1982 1,935,403 249,015 2,213,486 790,333 146,204 195,945 407,309 5,937,695 1983 2,133,859 328,019 2,459,133 859,928 154,812 244,433 489,111 6,669,295 0 1984 2,407,352 296,667 2,524,494 919,796 158,823 337,201 330,452 6,974,785 1985 2,444,153 387,806 2,618,957 979,543 187,045 348,316 311,926 7,277,746 1986 2,566,220 411,406 2,866,442 965,527 224,753 318,453 341,403 7,694,204 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 (1) Funds included in this table are the General Fund. City of Brooklyn Center TABLE 3 TAX LEVIES AND TAX COLLECTIONS Last Ten Fiscal Years Collections Percentage Collections Ratio of of Current Lev of Prior Ratio of Delin uent Y q Year's Taxes Collected Year's Taxes Total Delinquent Taxes to Year Tax Levy During Fiscal During Fiscal During Fiscal Total Collections Taxes Current Year Collected (1) Period Period Period Collections of Tax Levy Receivable Tax Levy 1979 $2,316,550 $2,277,597 98.32% $58,083 $2,335,680 1.0083:1 $146,042 .06304:1 1980 2,350,734 2,306,803 98.13% 62,371 2,369,174 1.0078:1 135,953 .05783:1 1981 2,746,020 2,619,758 95.40% 27,183 2,646,941 .9639:1 235,032 .08559:1 1982 2,965,702 2,854,688 96.26% 45,419 2,900,107 .9779:1 300,627 .10137:1 1983 2,482,369 2,420,772 97.52% 75,437 2,496,209 1.0056:1 286,787 .11553:1 1984 2,836,968 2,721,413 95.93% 111,596 2,833,009 .9986:1 290,746 .10248:1 1985 2,931,266 2,657,094 90.65% 178,709 2,835,803 .9674:1 386,209 .13176:1 1986 2,886,824 2,849,382 98.70% 32,739 2,882,121 .9984:1 390,912 .13541:1 1987 3,396,789 3,242,573 95.46% 68,651 3,311,224 .9748:1 73,052 .02151:1 1988 $3,642,504 $3,488,174 95.76% $13,090 $3,501,264 .9612:1 $105,521 .02897:1 (1) Includes property taxes only; lodging tax and tax increments are excluded. (General fund, 69 Bldg Bonds, Park Bonds, and E.D.A.) City of Brooklyn Center TABLE 4 ASSESSED VALUE AND MARKET VALUE OF ALL TAXABLE PROPERTY Last Ten Fiscal Years 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 Population (Actuat) 32,950 31,230 30,990 30,820 30,830 30,820 30,630 30,267 29,759 29,420 Real Property Assessed value: City: Homestead 572,075,015 570,506,973 582,133,535 574,268,430 $75,252,072 578,112,774 581,072,128 590,912,548 591,929,246 590,162,927 Non-homestead 54,893,227 63,605,303 80,626,961 104,715,944 122,369,087 124,305,853 126,444,994 125,109,658 139,433,999 154,031,355 Area-uide allocation (1,464,192) (1,832,196) (1,680,827) (2,357,630) (1,437,243> (3,366,456) (2,134,213) (2,097,533) (1,345,864) (8,148,681 125,504,050 132,280,080 161,079,669 176,626,744 196,183,916 199,052,171 205,382,909 213,924,673 230,017,381 236,045,601 Less Tax Increment District 78,000 742,474 4,057,611 5,437,588 9,784,473 i Total assessed vatue 125,504,050 132,280,080 161,079,669 176,626,744 196,183,916 198,974,171 204,640,435 209,867,062 224,579,793 226,261,128 Estimated Market Value 396 811,532 451 519 456 604 637 366 657 701 757 725 476,089 775 162 400 788,107 800 813 377 800 854 846 550 910 336 300 o Personal Property Assessed value 4,389,397 3,816,766 4,027,036 4,113,767 3,973,587 4,148,726 4,276,221 4,291,916 4,296,001 4,510,313 Estimated market value 10,207,900 8,876,200 9,365,200 9,566,900 9,240,000 9,648,200 9,944,700 9,981,200 9,990,700 10,489,100 Total Taxable Property Assessed vatue 5129,893,447 E136,096,846 5165,106,705 E180,740,511 5200,157,503 5203,122,897 5208,916,656 5214,158,978 $228,875,794 5230,771,441 Estimated market value $407,019,432 5460,395,656 5614,002,566 5667,268,657 5734,716,089 5784,810,600 5798,052,500 8823,359,000 5864,837,250 5920,825,400 Ratio of Assessed Value to Estimated Market Value .319133:1 .29561:1 .26890:1 .27086:1 .27243:1 .25882:1 .26178:1 .26010:1 .26465:1 .25061:1 Per Capita Valuations Assessed Value 53,942 54,358 55,328 $5,864 56,492 $6,591 $6,821 57,076 57,691 57,844 Estimated Market Value 512,353 514,742 519,813 $21,651 523,831 525,464 526,055 527,203 529,061 E31,299 City of Brooklyn Center TABIE 5 TAX RATES AND TAX LEVIES Last Ten Fiscal Years TAX RATES IN MILLS (2) School Districts Hennepin Total City, School, and County County Year Area Vo-Tech No. 286 No. 279 No. 281 No. 11 Special No. 286 No. 279 No. 281 No. 71 Collectible City (1) School Earl Brown Osseo Robbinsdale Anoka Districts Earl BroWn Osseo Robbinsdale Anoka 1979 17.880 2.227 47.451 45.0T3 46.645 47.706 35.450 703.008 100.630 102.202 101.036 1980 17.245 1.681 42.981 39.345 41.473 43.212 34.580 96.487 92.851 94.979 95.037 1981 16.603 1.510 33.512 33.427 40.757 37.996 33.373 84.998 84.913 92.243 87.972 1982 16.397 1.469 38.781 42.993 50.524 46.847 33.567 90.214 94.426 101.957 96.871 1983 15.971 1.119 42.896 46.035 52.901 45.474 33.557 93.543 96.682 103.548 95.002 1984 17.096 1.446 49.965 54.909 58.326 55.225 35.007 103.514 108.458 111.875 107.328 1985 16.506 1.490 49.332 51.199 56.100 52.830 34.443 101.771 103.638 108.539 103.779 1986 17.183 1.535 52.545 54.345 59.450 55.740 35.566 106.829 108.629 113.734 108.489 7987 18.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408 7988 19.237 1.493 59.372 61.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823 0 TAX LEVIES IN DOLLARS School Districts Hennepin County Total CitY. Year Area Vo-Tech No. 286 No. 279 No. 281 No. 11 Special Schools, Collectible City School Earl Brown Osseo Robbinsdale Anoka Districts and County 7979 52,316,550 5252,099 51,763,457 51,711,981 $1,805,864 E794,944 54,603,009 513,247,904 1980 2,350,734 203,243 1,737,432 1,568,491 1,650,314 1,522,661 4,711,671 13,744,546 1981 2,746,020 237,607 1,939,916 1,636,937 2,058,145 766,972 5,925,084 15,310,681 1982 2,965,702 265,508 2,422,618 2,061,005 2,606,004 881,745 6,066,917 1T,269,499 1983 2,482,369 202,256 2,790,808 2,625,207 2,781,573 1,049,119 6,716,839 18,648,171 1984 2,836,968 287,933 3,328,173 3,090,749 3,178,504 1,279,696 7,085,080 21,087,103 1985 2,931,266 310,394 3,442,445 3,014,744 3,187,821 1,286,533 7,207,150 21,380,353 7986 2,886,824 327,794 3,776,253 3,194,701 3,476,104 1,329,107 7,593,315 22,583,498 7987 3,396,789 293,194 3,900,388 3,409,323 3,726,934 1,327,348 8,088,560 24,142,536 7988 53,576,812 S30T,506 54,602,806 53,782,157 53,875,906 51,537,601 58,862,771 526,545,559 (1) Includes tax levy for the Econanic Development Authority of Brooklyn Center of one third mill. (2) One mill raises 51.00 in taxes for each 51,000.00 of assessed value. City of Brooklyn Center TABLE 6 SPECIAL ASSESSMENT COLLECTIONS Last Ten Fiscal Years Current Collections Percent Total Special Percent Collection Collections Year Assessment of of Prior Total to Current Collected Billings Amount Billings Years Collections Levy 1979 $585,105 $461,550 78.88% $439,371 $900,921 153.98� 1980 655,175 572,104 87.32% 239,038 811,142 123.81% 1981 395,439 335,859 84.93% 95,963 431,822 109.20$ N 1982 733,198 649,472 88.58% 95,962 745,434 101.67� 1983 981,733 908,531 92.54% 57,463 965,994 98.400 1984 813,013 768,241 94.49� 79,617 847,858 104.29� 1985 715,185 698,756 97.70% 84,781 783,537 109.56% 1986 631,296 631,165 99.98� 11,953 643,118 101.87� 1987 572,851 552,168 96.39% 3,139 555,307 96.94� 1988 $556,028 $526,594 94.71% $2,723 $529,317 95.20% City of Brooklyn Center TABLE 7 RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET DEBT PER CAPITA Last Ten Fiscal Years Less: Ratio of Net Net Gross Amounts Net Bonded Debt Bonded Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per Year Population Value Debt Service Fund Debt Values Capita 1979 32,950 $129,893,447 $2,115,000 $363,471 $1,751,529 1.35% $53.16 1980 31,230 136,096,846 3,420,000 403,728 3,016,272 2.22% 96.58 1981 30,990 165,106,705 3,235,000 508,101 2,726,899 1.65% 87.99 0 W 1982 30,820 180,740,511 3,040,000 606,062 2,433,938 1.35% 78.97 1983 30,830 200,157,503 2,800,000 678,318 2,121,682 1.06% 68.82 1984 30,820 203,122,897 2,545,000 628,786 1,916,214 0.94% 62.17 1985 30,630 208,916,656 2,290,000 846,014 1,443,986 0.69% 47.14 1986 30,267 214,158,978 2,020,000 945,736 1,074,264 0.50% 35.49 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 City of Brooklyn Center COMPUTATION OF LEGAL DEBT MARGIN December 31, 1988 Assessed value, for taxes payable in 1988 Debt limit, 7.33% of assessed value Total bonded debt Deductions (See Note 5): A. Bonds: 1. Special Assessment Bonds 2. State Aid Street Bonds 3. Utility Revenue Bonds 4. Tax Increment Bonds B. General Debt Service Funds Total Deductions Total Debt Applicable to Debt Limit Legal Debt Margin, December 31, 1988 8,900,000 1,220,000 180,000 180,000 6,060,000 7,640,000 751,408 8,391,408 Table 8 $230,771,441 16,915,547 508,592 $16,406,955 -104- City of Brooklyn Center TABLE 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 1988 City's Share Governmental Unit Gross Debt Sinking Funds Net Debt Per Cent Amount Direct Debt: City of Brooklyn Center (1) $1,440,000 $751,408 $688,592 100.0% $688,592 Overlapping Debt: School Districts: No. 281 (Robbinsdale) 6,360,000 2,513,189 3,846,811 10.2% 392,375 No. 11 (Anoka) 27,720,000 2,851,974 24,868,026 5.9% 1,467,214 No. 279 Osseo 51,515,000 3,466,000 48,049,000 26.8% 12,877,132 No. 286 Brook�yn Center) 220,000 92,712 127,288 100.0% 127,288 Area Vocational Technical School No. 287 4,600,000 1,013,123 3,586,877 4.9% 175,157 Metropolitan Transit 13,650,000 5,910,000 7,740,000 1.5% 116,100 Metropolitan Council (2 53,680,000 22,036,000 31,644,000 1.5% 474,660 Metropolitan Airport (3_ 0 0 0 0.0% 0 o Hennepin County 77,725,000 7,510,808 70,214,192 2.7q 1,895,783 'I Total Overlapping Debt 235,470,000 45,393,806 190,076,194 17,526,308 i Total Direct and Overlapping Debt $236,910,000 $46,145,214 $190,764,786 $18,214,900 (1) Includes only general obligation debt which is being repaid through property taxes. (2) Excludes $255,804,000 less $37,074,000 in sinking funds of Metropolitan Council issued G.O. Sewer Bonds. These bonds are supported from sewer charges to governments (including Brooklyn Center) in the metropolitan sewer system. (3) Excludes $169,730,000 less $37,463,924 in sinking funds of G.O. Airport bonds supported from airport user fees. Direct Overlapping Comparative Net Debt Ratios Chargeable to City Total Debt Debt Debt to assessed value $230,771,441 7.89% 0.30% 7.59% Debt to market value $920,825,400 1.97% 0.07�0 1.90% Per capita debt, population 29,420 $619.14 $23.41 $595.73 TABLE_10 City of Brooklyn Center RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years Ratio of Total (1) Total Debt Service Debt General (2) to General Year Principal Interest Service Expenditures Expenditures 1979 $210,000 $146,905 $356,905 $4,629,146 7.71� 1980 195,000 134,211 329,211 4,722,011 6.97% 1981 185,000 226,785 411,785 5,330,337 7.73% 1982 195,000 224,100 419,100 6,056,275 6.92% 1983 240,000 210,620 450,620 6,726,636 6.70� 1984 255,000 250,132 505,132 7,209,109 7.01% 1985 255,000 251,095 506,095 9,885,047 5.12% 1986 275,000 507,558 782,558 9,474,265 8.26% 1987(3) 2,475,000 930,252 3,405,252 11,813,346 28.83% 1988 640,000 682,561 1,322,561 10,567,159 12.52% (1) For years 1979 through 1986, General Obligation Bonds and G.O. Tax Increment Bonds are included. From 1987 onward, Improvement Bonds, formerly Special Assessment Bonds, are also included. (2) Included General, Special Revenue, and Debt Service funds. (3) Amounts for 1987 are higher because of the issuance of Refunding Bonds of 1987 and the defeasance of Improvement Bonds of 1982. -106- City of Brooklyn Center TABLE 11 SCHEDULE OF REVENUE BOND COVERAGE Last Ten Fiscal Years Ratio of Net Net Revenue Gross Expenses Revenue to Debt Year Revenue (1) Available Principal Interest Total Service 1979 $1,572,244 $824,417 $747,827 $35,000 $23,010 558,010 12.891 :1 1980 1,950,340 952,850 997,490 35,000 21,645 56,645 17.609 :1 1981 2,272,211 1,189,203 1,083,008 40,000 20,280 60,280 17.966 :1 1982 2,242,053 1,565,291 676,762 40,000 18,72.0 58,720 11.525 :1 1983 2,195,913 1,465,713 730,200 40,000 17,160 57,160 12.775 :1 1984 2,386,974 1,550,216 836,758 40,000 15,600 55,600 15.050 :1 1985 2,435,238 1,549,645 885,593 45,000 14,040 59,040 15.000 :1 1986 2,316,456 1,613,187 703,269 45,000 12,399 57,399 12.252 :1 1987 2,330,310 1,679,915 650,395 45,000 10,786 55,786 11.659 :1 1988 $2,548,849 $2,047,568 $501,281 $45,000 58,889 $53,889 9.302 :1 (1) Excludes depreciation and interest on bonds. -107- 1 City of Brooklyn Center TABLE 12 PROPERTY VALUE AND CONSTRUCTION Last Ten Fiscal Years Commercial Residential Construction Construction Property Value (1) Year Value Units Value Commercial Residential Non-Taxable 1979 $8,209,394 76 $3,392,700 $140,651,752 $285,436,500 $50,386,615 1980 12,544,300 43 3,061,000 161,917,915 330,196,500 50,386,615 1981 12,926,950 33 1,157,000 215,536,256 392,096,600 52,828,091 1982 2,497,700 70 2,055,000 228,523,271 483,354,800 52,828,091 1983 5,342,000 140 8,677,800 235,045,689 490,430,400 52,828,091 1984 6,037,900 77 8,954,300 268,460,800 506,701,600 52,828,091 1985 29,553,108 14 827,700 201,274,889 586,929,400 62,287,088 1986 14,689,661 157 9,737,806 199,882,500 613,694,000 64,906,838 1987 7,220,527 9 885,202 246,784,100 608,890,900 92,384,868 1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 (1) Estimated market value. -108- City of Brooklyn Center TABLE 13 PRINCIPAL TAXPAYERS December 31, 1988 Percentage 1988 of total Market Market ________Taxpayers _____Type of Business Valuation ___Value Equitable Life Assurance Society of America Brookdale Shopping Center $37,742,800 4.10% Robert H. Bradley Office and Warehouse Building 13,092,400 1.42% Norman Chazin Apartment Buildings 13,083,300 1.42% Ryan Construction Office Buildings 12,848,500 1.40% Shingle Creek Plaza II Land, Warehouse and Office Buildings 11,925,500 1.30% Commercial Partners Brookdale Square Shopping Center 8,404,300 0.91% Twin Lake North Company Apartments 8,337,900 0.91% Cigna Real Estate Funds, Office Buildings 7,980,000 0.87% Ltd. Partnership Sears Roebeck and Company Sears Department Store 7,891,200 0.86% Plaza Real Estate Partners Hotel/Motel 6,870,700 0.75% Total Market Value $128,176,600 13.94% -109- i City of Brooklyn Center Table 14 SCHEDULE 4F INSURANCE COVERAGE Effective January 1, 1989 (Continued next page) Policy Period Type of Coverage and Details From To Liability Limits I. Statutory Liability to Employees a. Workers' Compensation 01-01-89 01-01-90 Statutory (participant in the League of Minnesota Cities Insurance Trust Self-Insured Workers' Compensation Program) II. Liability to the Public a. General liability, comprehensive 01-01-89 01-01-90 (1) Bodily injury $600,000 combined single limit (2) Property damage $600,000 combined single limit (3) Personal injury $600,000 combined single limit b. Automobile liability, comprehensive 01-01-89 O1-01-90 (1) Bodily injury $600,000 occurrence (2) Property damage $600,000 occurrence (3) Uninsured motorist $600,000 occurrence c. Liquor stores' dram shop 01-01-89 01-01-90 $1,000,000 each common cause III.'Loss of Income on City Enterprises a. Liquor stores 01-01-89 01-01-90 $450,000 b. Public utilities 01-01-89 O1-OI-90 $450,000 i -110- i City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE Effective January 1, 1989 (Continued from prior page) Suildings and ____Policy_Period Structures Content: (Replacement (Replacement Type of Coverage and Details From To Cost) Cost) IV. Insurance on City Property 01-01-89 01-01-90 a. Public and institutional property, all risk, blanket $14,996,400; $1,000 deductible, replacement value on buildings, except stated value on Earle Brown Farm buildings 1 Civic Center $4,683,000 468,000 2 East Fire Station 504,000 56,000 3 Municipal Service Garage $1,142,000 220,000 4 Elevated Water Towers 3 locations $2,611,000 0 5 Pa•rk Shelter Buildings 17 locations $1,270,000 51,000 6 Pump Houses 7 locations 440,000 120,000 7 Lift Stations 9 locations 305,000 68,000 8 Meter Station 14,000 0 9 Storage Building 242,000 0 lb� Outdoor lighting systems 7 locations 285,000 0 11 Liquor Store and Fire Station 477,000 201,000 12 Humboldt Liquor Store 210,000 163,000 13 Leased Liquor Store 0 205,000 14 Movable Properties 0 154,974 15 Pedestrian Bridge 431,000 0 16 Picnic Shelter 48,000 0 ,17, Earle Brown Farm Buildings 501,900 0 Liability Limits b. Boiler and machinery 01-01-89 01-01-90 $3,000,000 per accident c. Automotive physical damage Ol-Ol-89 01-01-90 1 Comprehensive ACV -$250 deductible ,2, Collision ACV $500 deductible V. Criminal Acts a. Faithful performance blanket position $100,000 per loss b. Money and securities (broad form) Various c. Depositor's forgery $100,000 The comprehensive general liability includes the following additional coverages: a All employees as additional insureds b; Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction or invasion of right of privacy. c Broad contractual liability d Products liability e_ Public Officials' liability -111- City of Brooklyn Center TABLE 15 SCHEDULE OF CASH AND TEMPORARY CASH INVESTMENTS December 31, 1988 Cash in Banks: I� First Brookdale State Bank Brooklyn Center, Minnesota $93,236 First National Bank of Minneapolis, Minneapolis, Minnesota 2,306 I �I Temporary Investments: Interest Carr in Type Rate Maturity ____Amoun9 Banker's Acceptance 9.376 1989 $1,108,759 Repurchase Agreement 8.000 1989 200,000 U.S. Treasury bond 4.25 1992 75,000 U.S. Treasury notes 6.284-8.336 1989-1990 7,152,842 Federal Home Loan Bank bonds 6.55-9.95 1989-1991 13,703,857 ;II Federal National Mortgage Association bonds 8.375-12.00 1989-1992 2,869,782 Federal Farm Credit Bank bonds 8.30-8.75 1989-1990 2,300,000 27,410,240 Total Cash and Investments per Note 2 27,505,782 Interfund borrowings -(temporary improvement notes) 859,610 Accrued interest on investments 570,814 Change funds 5,490 Performance Deposits (13,342) Total Cash, Temporary Cash Investments and Restricted Investments $28,928,354 -112- City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS December 31, 1988 (Continued next page) Date of Incorporation February 14, 1911 Date of Adoption of City Charter November 8, 1966 Date City Charter Effective December 8, 1966 Form of Government Council-Manager Fiscal Years Begins Janaury 1 Area of City 8 1/2 square miles Miles of Streets: City 104.25 County 6.49 State 10.79 Miles of Storm Sewers 39.91 Number of Street Lights 954 Building Permits: Number of Permits Issued: 1988 554 1987 573 1986 604 1985 521 1984 545 1983 660 1982 I 516 1981 518 1980 563 1979 606 Estimated Cost: 1988 10,846,987 1987 10,421,724 1986 28,594,810 1985 32,328,938 1984 15,606,354 1983 16,096,550 1982 5,968,824 1981 16,190,205 1980 17,454,690 I 1979 13,081,520 Fire Protection: Number of Stations 2 Number of Volunteer Firemen 38 Police Protect�on: Number of Stations 1 Number of Full-time Employees 47 Number of Part-time Employees 7 Police Department Vehicles 16 -113- City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS December 31, 1988 (Continued next page) Parks and Recreation: Park property totals 522 acres developed to serve a wide variety of recreational interests. Areas include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Full-time employees 13 Part-time employees (seasona�) 150 Playgrounds 17 Park shelters 17 Ice skating rinks 10 Hockey rinks 6 Softball diamonds 26 Baseball diamonds 6 Tennis courts 18 Basketball courts 18 Munici pal Water Plant: Number of connections 8,873 Average daily consumption 4,866,435 gallons Peak daily consumption 12,639,000 gallons Plant capacity daily 16,500,000 gallons Miles of water mains 111.70 miles Number of fire hydrants 820 Number of wells 9 Number of elevated reservoirs 3 Storage capacity 3,000,000 gallons Water rate per thousand 39 cents Munici pal Sewer Plant: Number of connections 8,817 Miles of sanitary sewer 104.21 Daily disposal capacity 7,862,400 gallons Number of lift stations 10 Residential rate $23.20 per quarter Munici pal Liquor Stores (Off-Sale): Number of owned stores 2 Number of leased stores 1 1988 sales $2,583,594 City Employees• As of December 31, 1988 Permanent or regular 133 Temporary or part-time 287 Total 420 Elections: Last General Election November 8, 1988 Registered voters 19,690 Votes cast 15,462 Percenta�e ot registered voters voting 78.5% Last Municipal Election 1988 Registered voters 19,690 Votes cast 15,462 Percentage of registered voters voting 78.5% -114- City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS December 31, 1988 (Continued from prior page) Population: 1940 1,870 1950 4,284 1960 24,356 1965 (specia� census) 30,108 1980 31,230 1981 per otticia� estimates 30,990 1982 per official estimates 30,820 1983 per official estimates 30,830 1984 per official estimates 30,820 j 1985 per official estimates 30,630 1986 per official estimates 30,267 1987 per official estimates 29,759 1988 _per official estimates, 29,420 Education: Public Schools School districts within Brooklyn Center (4) No. 11 No. 286 No. 281 No. 279 __Anoka Earle_Brown Robbinsdale _Osseo Total school buildings 35 2 22 21 School buildings within Brooklyn Center 1 2 1 3 Total students registered 33,000 1,594 13,933 18,468 Students from Brooklyn Center registered 989 1,456 563 1,674 Total square miles in school district 172 2.8 30 66.5 Square miles within Brooklyn Center 1.5 2.8 2.25 2.5 1988 assessed valuation 829,417,124 88,580,883 $770,195,010 $594,287,239 1988 assessed valuation in Brooklyn Center 24,727,832 88,580,883 66,330,779 61,141,587 -115-