HomeMy WebLinkAbout2004 04-29 FCAAGENDA
Brooklyn Center Financial Commission
Thursday, 29 April 2004
7:00 PM
Council Commission Conference Room
I. Call to Order
II. Roll Call
III. Approval of Agenda
IV. Meeting Minutes
19 February 2004
V. Report of Subcommittee on City Council Compensation
VI. Update on Development Projects
VII. 2005 Budget Calendar
VIII. Request for Proposals for Financial Advisory Services
IX. Joint Session with City Council on 2003 Comprehensive Annual Financial
Report (CAFR)
X. Commission Recognition
XI. Other Business
XII. Adjournment
0
BROOKLYN CENTER FINANCIAL COMMISSION
Chairperson and six members
•
Donn Escher, Chairperson ({ Mark Nemec
3107 65th Avenue North 5538 Camden Avenue North
Brooklyn Center, MN 55429 Brooklyn Center, MN 55430
nickie73@comcast.net Mark.Nemec@State.MN.US
(763) 561-4533 (763) 566-1415 (h); (651)297-1944
Appointed: 7/13/92 Appointed: 6/14/99
Appointed Chair: 8/17/92 Term expires: 12/31/06
Term expires: 12/31/05 �\,`/
( Lawrence Peterson /( ^( r 9Cf
• Timothy Elftmann l 5830 June Avenue North lU ( � °lel
5301 Howe Lane Brooklyn Center, MN 55429el
Brooklyn Center, MN 55429 1peterson@strategicequipment.com
TElftmann@Compuserve.com (763) 537-7022 (h); (612) 871-2727 (w)
t)p,5:::
(763) 537-2279 Appointed: 10/25/93
Appointed: 7/13/98 Term expires: 12/31/04
Term expires: 12/31/05
Susan Shogren Smith
Jay liruska, Vice Chairperson 600 62nd Avenue North
• 5012 North Lilac Drive Brooklyn Center, MN 55430
Brooklyn Center, MN 55429 sssmith@stthomas.edu
jhruska@visi.com (763) 566-5927
(763) 535-4637 Appointed: 1/26/04
Appointed: 3/13/95 Term expires: 12/31/05
Term expires: 12/31/04
Robert Milne
6824 Beard Avenue North
Brooklyn Center, MN 55429
Phone: (763) 561-3023
Fax: (763) 560-1014
Appointed: 1/26/04
Term expires: 12/31/05
2004 City Council Liaison Kathleen Carmody(h) (763) 566-3114
councilmembercarmody@ci.brooklyn-center.mn.us
City Manager Michael McCauley(w) (763) 569-3309
mmccauley@ci.brooklyn-center.mn.us
Director of Fiscal and Support Services Dan Jordet(w) (763) 569-3345
djordet@ci.brooklyn-center.mn.us
•
[April 20,2004]
•
Bilijijif
AGENDA
Brooklyn Center Financial Commission
Thursday, 29 April 2004
7:00 PM
Council Commission Conference Room
I. Call to Order
II. Roll Call
III. Approval of Agenda
• IV. Meeting Minutes
19 February 2004
V. Report of Subcommittee on City Council Compensation
VI. Update on Development Projects
VII. 2005 Budget Calendar
VIII. Request for Proposals for Financial Advisory Services
IX. Joint Session with City Council on 2003 Comprehensive Annual Financial
Report (CAFR)
X. Commission Recognition
XI. Other Business
XII. Adjournment
•
•
Financial Commission
Regular Meeting Minutes
19 February 2004
1. Call to Order
The meeting was called to order at 7:00 PM
2. Roll Call
Members Present: Chair Escher and Commissioners Hruska, Elftmann, Nemec,
Peterson, Milne and Smith. Liaison Councilmember Carmody arrived at 7:08.
Others Present: City Manager McCauley and Director of Fiscal & Support
Services Jordet
3. Agenda
• Mr. Hruska proposed and Mr. Peterson seconded a motion to adopt the agenda
with two additional comments by Chair Escher. With all voting in favor, the
motion was adopted.
4. Minutes
Mr. Elftmann proposed and Mr. Hruska seconded a motion adopting the minutes
of the 20 October 2003 and 17 November 2003 minutes as presented. With all
voting in favor, the motion was adopted.
5. Orientation of New Members
Chair Escher allowed for suspension of the rules to allow introductions to be
done prior to the voting for a Chair for the Commission. All present introduced
themselves and gave a short summary history of their involvement in the City of
Brooklyn Center and their interest in the Commission.
6. Election of Chairperson
Mr. Elftmann nominated Mr. Escher to be Chair of the Commission for another
term. Mr. Peterson seconded the nomination. With no other nominations being
•
heard nominations were closed and all voted in favor of Mr. Escher's continuing •
as Chairperson. He, in turn, appointed Mr. Hruska as Vice Chairperson for 2004.
7. City Council Compensation
Copies of a policy on City Council compensation were distributed and reviewed.
Staff was instructed to prepare the requisite survey of neighboring communities.
Chair Escher then appointed a subcommittee of Mr. Hruska, Mr. Nemec and Ms.
Smith to review these results in late March or early April in order to make a
recommendation to the full Commission in May.
8. Other Business
Chair Escher confirmed with Mr. McCauley that work on the 2005 budget would
begin in May of 2004. Chair Escher asked that Mr. McCauley update the
Commission at that time on the status of Brooklyn Center as the #1 or #76
community in the metro property tax calculation.
The schedule for review of professional financial services was discussed and the
policy for receiving proposals was reviewed and discussed. The City will receive
Requests for Proposals (RFP's) on Financial Advisory Services in 2004. This RFP
is scheduled to be accomplished over the summer with final recommendation •
coming from the Commission in July for action by the City Council in August.
Mr. Hruska commented that it was important for Commission members to
become very familiar with the issues they discussed and spoke of having
"grassroots" understanding of the budget and its processes.
The Commission asked that staff have packets of information for meetings
distributed at least one week prior to any commission meeting.
9. Adjournment
Mr. Nemec proposed and Mr. Hruska seconded adjournment of the meeting.
Chair Escher adjourned the meting at 8:17 PM.
Donn Escher, Chairperson
ATTEST:
Daniel Jordet, Director of F & SS •
2
•
Memorandum
Date: 11 February 2004
To: Financial Commission
From: Daniel Jordet
Director of Fiscal & Support Services
Re: Background for Agenda Items
29 April 2004
Item V. Report of the Subcommittee on City Council Compensation
Please see the attached packet materials for information.
Item VI. Update on Development Projects
City Manager McCauley will give an oral update on the status of community
development projects in Brooklyn Center.
Item VII. 2005 Budget Calendar
The Financial Commission is scheduled to meet in Joint Budget Work Sessions
with the City Council on the following dates:
Monday, 17 May 2004, 6:30 PM at City Hall
Monday, 16 August 2004, 6:30 PM at City Hall
Monday, 4 October 2004 at City Hall , iy 3.° PN � l
Monday, 15 November 2004, 6:30 PM at City Hall
Monday, 6 December 2004, 7:00 PM at City Hall (Truth in Taxation Hearing)
Background information and materials will be provided to the Commissioners
prior to each of these meetings.
Item VIII. Request for Proposals for Financial Advisory Services
Please see the attached packet materials for information.
•
3
Item IX. Joint Session with the City Council on 2003 Comprehensive Annual •
Financial Report (CAFR)
The Financial Commission is scheduled to meet in Joint Session with the City
Council to review the CAFR for the 2003 fiscal year on Monda 1 June 2004 at
6:30 PM. Staff will present a summary of the information con ained in the CAFR.
The City's outside auditor, HLB Tautges Redpath, will have a representative
present to summarize the audit findings, if any, and respond to questions.
Again, Commissioners will receive materials background materials for this session
prior to the meeting.
Item X. Commission Recognition
City Manager McCauley would like to solicit feedback from Commission members
on the most appropriate means by which the City Council could express its
appreciation.
Item XI. Other Business
If there is other business or other information the Commission would like to
discuss this time is made available on the agenda.
111
Additional Items
Also attached is:
• A copy of the most recent Official Statement for the sale of bonds. This
OS gives the financial information presented to outside investors about
the City when bonds are sold. It is for your information and requires no
action.
4
•
Memorandum
Date: 9 April 2004
To: Donn Escher, Chair
Members of the Financial Commission
From: Jay Hruska, Subcommittee Chair
Re: City Council Compensation for 2005 and 2006
The Financial Commission Subcommittee on City Council Compensation met on
Thursday evening, 8 April 2004, at 6:30 PM at City Hall. Present were, Jay Hruska,
Subcommittee Chair and Mark Nemec, Subcommittee Member. Also present was
Daniel Jordet, Director of Fiscal & Support Services.
The members reviewed the materials prepared by Mr. Jordet on behalf of the
Subcommittee. Mr. Hruska asked about the inclusion of computer expenses in
Council compensation. Mr. Jordet replied that the computer allowance was rolled
into the overall Council compensation amount in 2000.
• Mr. Hruska reviewed the goals used by compensation subcommittees in the past. It
has been the goal of the group to keep City Council compensation at or above the
median of the comparison cities. For 2004, the chart shows Brooklyn Center at
110% to 111% of the median for comparison cities.
Both Mr. Hruska and Mr. Nemec pointed out that compensation consideration should
also be viewed in light of the budget constraints currently being experienced by the
City.
The Subcommittee recommends that City Council compensation be left at the 2004
levels for 2005 and that no additional amounts be paid. For 2006 the Subcommittee
recommends an increase of 2% in the base wage of City Council members. Total
cost of the increase should be about $ 1,000 for 2006. The three main reasons for
this recommendation are:
• Budget constraints
• Sensitivity to citizens concerns expressed about prioritization of expenses
• Council's current status in terms of position above the median compensation
of comparison cities
This recommendation will be forwarded to the Financial Commission for
• consideration at their 29 April 2004 meeting.
5
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City of Brooklyn Center
• 4.2 Policy and Procedure on Mayor and Council Member Total Compensation
•1. Need for Policy
The community is entitled to a clearly articulated, written description of the policy and
procedure for establishing the total compensation of local elected officials.
2. Policy
A. Service on the City Council is a civic obligation and an honor. The total
compensation of the Mayor and Council Members should, therefore, not
encourage candidacies based on monetary rather than public service objectives.
However, the compensation of Brooklyn Center elected officials shall be fair and
equitable in order to attract qualified candidates for local elective office.
B. The propriety of the compensation levels of the Mayor and Council Members
shall be evaluated through comparisons with compensation paid to similar
officials within the seven county metropolitan area.
C. The compensation levels of elected officials should be regularly reviewed and
adjusted to ensure compliance with the objectives of this policy and to avoid the
need for drastic or sudden compensation adjustments.
• D. Compensation set pursuant to this policy and procedure shall be deemed to be the
total compensation for elected officials of the City with the exception of expense
reimbursement which shall be the same as provided all other City employees.
3. Procedure
A. The City Manager shall biennially prepare a compensation report that contains an
analysis of the compensation paid to elected officials of Minneapolis-St. Paul
Area Metropolitan cities having a population within 10,000 of the City of
Brooklyn Center that are generally fully developed {Such grouping shall include
the cities of Richfield, Roseville, Maplewood, Fridley, Shoreview, White Bear
Lake, Crystal, New Hope, and Golden Valley, in addition to the City of Brooklyn
Center.) The report shall compute the average and median amounts paid to
Mayors and Council Members and correlate survey results to the current
compensation of Brooklyn Center elected City officials. The City Manager shall
assemble such additional information on compensation of City elected officials as
may be requested to assist the Commission and Council in their review of elected
official's compensation.
B. The City Manager shall submit the compensation report to the City Council and
the Financial Commission prior to June 1, for information pertaining to the
applicable calendar year.
•
7
City Council Policies Section 1Y--3 December 2003
City of Brooklyn Center
C. The Financial Commission shall biennially review the City Manager's •
compensation report and discuss possible budgetary and public perception
impacts of the indicated changes. Prior to July 1 of the same year, the
Commission shall recommend to the City Council that the compensation of the
Mayor and Council Members either remain the same or be changed to some
specific amount in the manner prescribed by law.
D. Consistent with the City Charter, Section 2.07, the Mayor and Council Members
may, after conducting public hearings, set their compensation by ordinance. No
change in compensation shall be in effect until January 1, following the next
succeeding general election.
4. Authority
The authority for establishing compensation for the Mayor and Council Members is
found in Minnesota Statutes 415.11 and the City of Brooklyn Center Charter, Section
2.07.
Reference:
• City Council Minutes 1/10/94
• City Council Resolution No. 98-91
•
•
8
City Council Policies Section IV-4 December 2003
•
Memorandum
Date: 23 April 2004
To: Financial Commission
From: Daniel Jordet
Director of Fiscal & Support Services
Re: Request for Proposals for Financial Advisory Services
Every four years the City of Brooklyn Center solicits proposals from multiple
financial advisory services firms. The reason for soliciting these proposals on a
regular basis is to ensure the competitive pricing of our professional services. It
also allows firms that may have developed new and important methods or
technologies in financial advisory services to present their abilities to us for
consideration.
The most prominent use of the financial advisor is the sale of bonds for capital
projects and development. In such cases the financial advisor assists the City by
preparing documents for the legal compliance of each sale to federal and state
regulations and financial accounting standards. They prepare documents known
by such exciting titles as the Preliminary Recommendations, the Official
Statement and the Bond Record. They compile bids for bonds as received on bid
day and calculate the overall interest impacts of each bid. They also assist the
City in acquiring a rating for the bonds from Moody's Investor's Service.
At other times the financial advisor will provide management consulting,
specialized contract services, such as interim guidance on finance during
leadership transitions, capital planning advice, and technology application
recommendations.
The City Manager and Director of Fiscal & Support Services will develop a
document detailing the services required from the financial advisor at a
minimum. Each interested advisory firm will return a proposal to the City with its
rates for the various classifications of staffing use (Principal, Vice President,
Advisor, Clerical Staff, Analysis Staff) and a projected cost for bond issuance
services. These dollar amounts are reviewed along with track record for
performance and expected ability to deliver the services promised. Upon receipt
and analysis of these proposals, the Manager may recommend that the
• Commission and the Council interview one or more of the firms. From these
9
23 April 2004/RFP for Financial Advisory/page 2
•
interviews and reference checks come the final recommendation to be made to
the City Council on engagement of a financial advisor for the ensuing four year
period.
For the past several proposal periods, Springsted, Inc. has been named financial
advisor to the City of Brooklyn Center. They have done a commendable job thus
far and could merit renewal as financial advisor. However, in following the
policies of the City Council it is prudent to explore the open market from time to
time to ascertain which financial advisor might best meet the current needs of
our organization.
Mr. McCauley and Mr. Jordet will review the situation with the Commission on
Thursday evening, 29 April 2004.
•
•
10
, •
OFFICIAL STATEMENT DATED NOVEMBER 24, 2003
NEW ISSUES Ratings: Requested from Moody's
Investors Service
0 In the opinion of Briggs and Morgan,Professional Association,Bond Counsel,based on present federal and Minnesota laws,regulations,rulings and decisions,at the time of
their issuance and delivery to the original purchaser, interest on the Series 2004A Bonds is excluded from gross income for purposes of United States income tax and is
excluded,to the same extent,in computing both gross and taxable net income for purposes of State of Minnesota income tax(other than Minnesota franchise taxes measured
by income and imposed on corporations and financial institutions). Interest on the Series 2004A Bonds is not an item of tax preference for purposes of the alternative minimum
tax imposed on individuals and corporations;however,interest on the Series 2004A Bonds is taken into account for the purpose of determining adjusted current earnings for
purposes of computing the federal alternative minimum tax imposed on corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax
consequences caused by the receipt or accrual of interest on the Series 2004A Bonds or arising with respect to ownership of the Series 2004A Bonds. See'Tax Exemption-
Series 2004A Bonds"and"Other Federal Tax Considerations"herein. Interest on the Series 2004B Bonds is includable in gross income for purposes of United States and State
of Minnesota income tax. (See'Taxability of Interest-Series 2004E Bonds"herein.)
City of Brooklyn Center, Minnesota
$5,080,000* $2,490,000*
General Obligation Police and Fire Building Taxable General Obligation Tax Increment
Refunding Bonds, Series 2004A Refunding Bonds, Series 2004B
(the"Series 2004A Bonds") (the"Series 2004E Bonds")
(collectively,the"Bonds,"the"Obligations,"or the"Issues")
(Book Entry Only)
Dated Date: January 1,2004 ' Interest Due: Each February 1 and August 1,
commencing August 1, 2004
The Series 2004A Bonds will mature February 1 as follows:
2006 $580,000 2008 $600,000 2010 $640,000 2012 $685,000
2007 $590,000 2009 $620,000 2011 $655,000 2013 $710,000
The Series 2004A Bonds will be bank-qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals.
The Series 2004E Bonds will mature February 1 as follows:
• 2006 $410,000 2008 $410,000
2009 $415,000 2010 $415,000
2007 $425,000 2011 $415,000
Common to Both Issues
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All
term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth
above at a price of par plus accrued interest to the date of redemption.
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct
general ad valorem taxes. Additional sources of revenues pledged to the payment of the Bonds are described herein.
A separate bid must be submitted for each Issue, along with a certified or cashier's check or a Financial Surety Bond, for
not less than the amounts shown below. Bidders shall specify rates in integral multiples of 5/100 or 1/8 of 1%. Rates must
be in level or ascending order. Award of each issue will be made on the basis of True Interest Cost(TIC).
Minimum Bid Good Faith
Series 2004A Bonds $5,039,360 $50,800
Series 2004B Bonds $2,472,570 $24,900
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of
Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities depository of the Bonds.
Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples
thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See"Book Entry
System" herein.) U.S. Bank National Association, St. Paul, Minnesota, will serve as registrar(the"Registrar")for the Bonds
and the City will pay for registration services. Bonds will be available for delivery at DTC on or about January 8, 2004.
* Preliminary;subject to change.
III PROPOSALS RECEIVED: December 8, 2003 (Monday) until 10:00 A.M., Central Time
AWARD: December 8, 2003 (Monday) at 7:00 P.M., Central Time
r SPRINGSTED Further information may be obtained from SPRINGSTED Incorporated,
Financial Advisor to the Issuer, 85 East Seventh Place, Suite 100, Saint Paul,
Advisors to the Public Sector Minnesota 55101-2887(651)223-3000
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
•
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Obligations, together with any other
information required by law, shall constitute a "Final Official Statement" of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate to which
the Obligations are awarded copies of the Official Statement and the addendum or addenda
described in the preceding paragraph in the amount specified in the Terms of Proposal.
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect
to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Obligations for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
•
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations, other than as
contained in the Official Statement or the Final Official Statement, and if given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to
be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein. Where full texts of
documents prepared by or on behalf of the Issuer have not been included as appendices to the
Official Statement or the Final Official Statement, they will be furnished on request.
•
•
TABLE OF CONTENTS
Paoe(s)
Terms of Proposal:
$5,080,000* General Obligation Police and Fire Building
Refunding Bonds, Series 2004A i-iv
$2,490,000* Taxable General Obligation Tax Increment
Refunding Bonds, Series 2004B v-viii
Introductory Statement 1
Continuing Disclosure 1
The Bonds 2
The Series 2004A Bonds 4
The Series 2004E Bonds 5
Future Financing 5
Litigation 6
Legality 6
Tax Exemption—Series 2004A Bonds 6
• Other Federal Tax Considerations—Series 2004A Bonds 7
Taxability of Interest—Series 2004B Bonds 8
Bank-Qualified Tax-Exempt Obligations—Series 2004A Bonds 8
Ratings 8
Financial Advisor 8
Certification 9
City Property Values 10
City Indebtedness 11
City Tax Rates, Levies and Collections . 15
Funds on Hand 16
City Investments 16
General Information Concerning the City 17
Governmental Organization and Services 20
Proposed Forms of Legal Opinions • Appendix I
Continuing Disclosure Undertakings Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation Appendix III
Annual Financial Statements Appendix IV
Proposal Forms Inserted
•
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: •
TERMS OF PROPOSAL
$5,080,000*
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL OBLIGATION POLICE AND FIRE BUILDING
REFUNDING BONDS, SERIES 2004A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, December 8, 2003, until 10:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
•
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY`'. For purposes of the electronic bidding process, the time as maintained by PARITY®
shall constitute the official time with respect to all Bids submitted to PARITY°. Each bidder
shall be solely responsible for making necessary arrangements to access PARITY® for
purposes of submitting its electronic Bid in a timely manner and in compliance with the
requirements of the Terms of Proposal. Neither the City, its agents nor PARITY® shall have
any duty or obligation to undertake registration to bid for any prospective bidder or to provide or
ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY° shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY°. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY' is not
an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this
Terms of Proposal shall control. Further information about PARITY®, including any fee •
charged, may be obtained from:
PARITY°, 40 West 23`d Street, 5th Floor, New York City, New York 10010, Customer
Support, (212) 404-8102.
- i -
•
DETAILS OF THE BONDS
• The Bonds will be dated January 1, 2004, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2004. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2006 $580,000 2008 $600,000 2010 $640,000 2012 $685,000
2007 $590,000 2009 $620,000 2011 $655,000 2013 $710,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is
increased or reduced, any premium offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the percentage by which the principal amount of the
Bonds is increased or reduced.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued
interest to the date of redemption. In order to designate term bonds, the proposal must specify
"Years of Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
• representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar that shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund
in advance of maturity the February 1, 2006 through February 1, 2013 maturities of the City's
General Obligation Police and Fire Building Bonds, Series 1997B, dated December 1, 1997.
- ii -
TYPE OF PROPOSALS
Proposals shall be for not less than $5,039,360 and accrued interest on the total principal •
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $50,800,
payable to the order of the City. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement
and no interest will accrue to the purchaser, will be deposited by the City. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true •
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal that the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect 110
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
- iii -
SETTLEMENT
SWithin 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
been made impossible by action of the City, or its agents, the purchaser shall be liable to the
City for any loss suffered by the City by reason of the purchaser's non-compliance with said
terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking") whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 150 copies of
the Official Statement and the addendum or addenda described above. The City designates
the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby
that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall
enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes
of assuring the receipt by each such Participating Underwriter of the Final Official Statement.
Dated November 10, 2003 BY ORDER OF THE CITY COUNCIL
/s/ Sharon Knutson
Clerk
•
- iv -
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: •
TERMS OF PROPOSAL
$2,490,000*
CITY OF BROOKLYN CENTER, MINNESOTA
TAXABLE GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2004E
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, December 8, 2003, until 10:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted. IP
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY". For purposes of the electronic bidding process, the time as maintained by PARITY®
shall constitute the official time with respect to all Bids submitted to PARITY®. Each bidder
shall be solely responsible for making necessary arrangements to access PARITY® for
purposes of submitting its electronic Bid in a timely manner and in compliance with the
requirements of the Terms of Proposal. Neither the City, its agents nor PARITY® shall have
any duty or obligation to undertake registration to bid for any prospective bidder or to provide or
ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY" is not
an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this
Terms of Proposal shall control. Further information about PARITY®, including any fee
charged, may be obtained from: •
PARITY®, 40 West 23rd Street, 5th Floor, New York City, New York 10010, Customer
Support, (212) 404-8102.
-v-
•
DETAILS OF THE BONDS
• The Bonds will be dated January 1, 2004, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2004. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2006 $410,000 2008 $410,000 2010 $415,000
2007 $425,000 2009 $415,000 2011 $415,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is
increased or reduced, any premium offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the percentage by which the principal amount of the
Bonds is increased or reduced.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued
interest to the date of redemption. In order to designate term bonds, the proposal must specify
"Years of Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
1111 representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar that shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax
al increment revenues from Tax Increment District Number 3. The proceeds will be used to
refund in advance of maturity the February 1, 2006 through February 1, 2011 maturities of the
City's Taxable General Obligation Tax Increment Bonds, Series 1995A, dated November 1,
1995.
•
-vi
TAXABILITY OF INTEREST
The interest to be paid on the Bonds is includable in gross income of the recipient for United •
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and
bank excise taxes measured by net income.
TYPE OF PROPOSALS
Proposals shall be for not less than $2,472,570 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $24,900,
payable to the order of the City. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement
and no interest will accrue to the purchaser, will be deposited by the City. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal that the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the •
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
-vii -
•
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
been made impossible by action of the City, or its agents, the purchaser shall be liable to the
City for any loss suffered by the City by reason of the purchaser's non-compliance with said
terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking") whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 80 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
i Dated November 10, 2003 BY ORDER OF THE CITY COUNCIL
/s/ Sharon Knutson
Clerk
- viii
OFFICIAL STATEMENT
•
CITY OF BROOKLYN CENTER, MINNESOTA
$5,080,000*
GENERAL OBLIGATION POLICE AND FIRE BUILDING
REFUNDING BONDS, SERIES 2004A
$2,490,000*
TAXABLE GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2004B
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Brooklyn Center,
Minnesota (the "City" or the "Issuer") and its issuance of $5,080,000* General Obligation Police
and Fire Building Refunding Bonds, Series 2004A (the "Series 2004A Bonds") and $2,490,000*
Taxable General Obligation Tax Increment Refunding Bonds, Series 2004B (the "Series 2004E
Bonds"), collectively referred to as the "Bonds," the "Obligations" or the "Issues." The Bonds
are general obligations of the City for which the City pledges its full faith and credit and power
to levy direct general ad valorem taxes. Additional sources of revenues pledged to the payment
of the Bonds are described herein.
Inquiries may be directed to Mr. Curt Boganey, acting Director of Fiscal and Support Services,
City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430, or
by telephoning (763) 569-3345. Information may also be obtained from Springsted
Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2887, or by
telephoning (651) 223-3000. If information of a specific legal matter is desired, requests may
be directed to Ms. Kari Lapinsky, Briggs and Morgan Professional Association, 2200 West First
National Bank Building, 332 Minnesota Street, St. Paul, Minnesota 55101, or by telephoning
(651) 808-6536.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the "Rule"), pursuant to
the Award Resolutions and Continuing Disclosure Undertakings to be executed on behalf of the
City on or before Bond closing, the City has and will covenant (the "Undertakings") for the benefit
of holders or beneficial owners of the Bonds to provide certain financial information and operating
data relating to the City to certain information repositories annually, and to provide notices of the
occurrence of certain events enumerated in the Rule to certain information repositories or the
Municipal Securities Rulemaking Board and to any state information depository. The specific
nature of the Undertakings, as well as the information to be contained in the annual report or the
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is
increased or reduced, any premium offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the percentage by which the principal amount of the
Bonds is increased or reduced.
- 1 -
notices of material events, is set forth in the Undertakings in substantially the form attached hereto
shas Appendix II, subject to such modifications thereof or additions thereto as: (i) consistent with
requirements under the Rule, (ii) required by the purchaser(s) of the Bonds from the City and
(iii)acceptable to the Mayor and Director of Fiscal and Support Services of the City. The City
has never failed to comply in all material respects with any previous undertakings under the Rule
to provide annual reports or notices of material events. A failure by the City to comply with the
Undertakings will not constitute an event of default on the Bonds (although holders or other
beneficial owners of the Bonds will have the sole remedy of bringing an action for specific
performance). Nevertheless, such a failure must be reported in accordance with the Rule and
must be considered by any broker, dealer or municipal securities dealer before recommending the
purchase or sale of the Bonds in the secondary market. Consequently, such a failure may
adversely affect the transferability and liquidity of the Bonds and their market price.
THE BONDS
General Description
The Bonds are dated as of January 1, 2004 The Bonds will mature annually on February 1, as
set forth on the cover of this Official Statement. The Bonds are issued in book entry form.
Interest on the Bonds is payable August 1, 2004 and semi-annually thereafter on February 1
and August 1. Interest will be payable to the holder (initially Cede & Co.) registered on the
books of the Registrar on the fifteenth day of the calendar month next preceding such interest
payment date. Principal of and interest on the Bonds will be paid as described in the Section
herein entitled "Book Entry System." U.S. Bank National Association, St. Paul, Minnesota, will
• serve as Registrar for the Bonds and the City will pay for registration services.
Optional Redemption
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
Book Entry System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the Obligations. The Obligations will be issued as fully registered securities registered in the
name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by
an authorized representative of DTC. One fully registered certificate will be issued for each
maturity of each series of the Obligations, in the aggregate principal amount of such maturity,
and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct
Participants") deposit with DTC. DTC also facilitates the settlement among Direct Participants
of securities transactions, such as transfers and pledges, in deposited securities through
electronic computerized book-entry changes in Direct Participants' accounts, thereby
eliminating the need for physical movement of securities certificates. Direct Participants
("Direct Participants") include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct
Participants and by the New York Stock Exchange, Inc.; the American Stock Exchange LLC;
- 2 -
•
and the National Association of Securities Dealers, Inc. Access to the DTC system is also
o
available to others such as securities brokers and dealers, banks, and trust companies that
•
clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). The Rules applicable to DTC and its Direct and Indirect
Participants are on file with the Securities and Exchange Commission.
Purchases of Obligations under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Obligations on DTC's records. The ownership
interest of each actual purchaser of each Obligation ("Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their
holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in the Obligations are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in
the Obligations, except in the event that use of the book-entry system for the Obligations is
discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are
registered in the name of DTC's partnership nominee, Cede & Co. or such other name as
requested by an authorized representative of DTC. The deposit of Obligations with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not effect any
change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts
such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping account of their holdings on behalf of
their customers. •
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of the
Obligations may wish to take certain steps to augment transmission to them of notices of
significant events with respect to the Obligations, such as redemptions, defaults, and proposed
amendments to the security documents. Beneficial Owners of the Obligations may wish to
ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and
transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to
provide their names and addresses to the Registrar and request that copies of the notices be
provided directly to them.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
the Obligations. Under its usual procedures, DTC mails an Omnibus Proxy to the Registrar as
soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting
or voting rights to those Direct Participants to whose accounts the Obligations are credited on
the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Obligations will be made to Cede & Co. or such other
nominee as may be requested by an authorized representative of DTC. DTC's practice is to
credit Direct Participants' accounts on the payable date in accordance with their respective
holdings shown on DTC's records, unless DTC has reason to believe that it will not receive
payment on the payable date. Payments by Participants to Beneficial Owners will be governed
by standing instructions and customary practices, as is the case with securities held for the
accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC (nor its nominee), the Registrar, or the Issuer,
subject to any statutory or regulatory requirements as may be in effect from time to time.
- 3 -
Payment of principal and interest to Cede & Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of the Registrar, disbursement of
such payments to Direct Participants is the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed,
through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of
such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in
the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for
physical delivery of the Obligations in connection with a purchase or redemption will be deemed
satisfied when the ownership rights in the Obligations are transferred by the Direct Participants
on DTC's records and followed by a book-entry credit of purchased or redeemed Obligations to
the nominee holding the Obligations.
DTC may discontinue providing its services as securities depository with respect to the
Obligations at any time by giving reasonable notice to the Registrar. Under such
circumstances, in the event that a successor securities depository is not obtained, certificates
are required to be printed and delivered.
The Issuer may decide to discontinue use of the system of book-entry transfers through DTC
(or a successor securities depository). In that event, certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been
obtained from sources that the Issuer believes to be reliable, but the Issuer takes no
responsibility for the accuracy thereof.
THE SERIES 2004A BONDS
Authority and Purpose
The Series 2004A Bonds are being issued pursuant to Minnesota Statutes, Chapter 475.
Proceeds of the Series 2004A Bonds will be used to refund in advance of maturity the
February 1, 2006 through February 1, 2013 maturities (the "1997B Refunded Maturities") of the
City's $7,900,000 General Obligation Police and Fire Building Bonds, Series 1997B, dated
December 1, 1997 (the "Series 1997B Bonds"). The refunding is being conducted to achieve
interest cost savings.
The refunding will be conducted by means of a "crossover" refunding mechanism. The
proceeds of the Series 2004A Bonds will be placed in an escrow account with a bank or trust
company to be named by the City. The amount in the escrow account will be invested in
special obligations of the United States Treasury or other obligations of the United States or of
its agencies, which shall mature in such amounts and at such times as to be available to pay
debt service on the Series 2004A Bonds through the call date of the Series 1997B Bonds
(February 1, 2005). On the call date, the escrow account will cross over and pay the remaining
principal of the Series 1997E Bonds by calling in all of the 1997B Refunded Maturities at a price
of par plus accrued interest. Beginning with the August 1, 2005 interest payment the City will
start to make debt service payments on the Series 2004A Bonds, which shall have no principal
payments prior to the redemption in full of all outstanding Series 1997B Bonds.
• Actuarial services necessary to ensure the adequacy of the escrow account to provide timely
payment of the principal and interest for which the escrow account is obligated will be
performed by a certified public accounting firm.
-4 -
Security and Financing
The Series 2004A Bonds are general obligations of the City for which the City pledges its full
faith and credit and power to levy direct general ad valorem taxes. Interest payments due
through February 1, 2005 will be made from the escrow account. The City will make its first
levy in 2004 for collection in 2005. Each year's tax levy, if collected in full, will be sufficient to
pay 105% of the interest payment due August 1 in the year of collection and the principal and
interest payment due February 1 of the following year.
THE SERIES 2004B BONDS
Authority and Purpose
The Series 2004B Bonds are being issued pursuant to Minnesota Statutes, Section 469.174
through 469.1799 and Chapter 475. Proceeds of the Series 2004E Bonds will be used to
refund in advance of maturity the February 1, 2006 through February 1, 2011 maturities (the
"1995A Refunded Maturities") of the City's $4,560,000 Taxable General Obligation Tax
Increment Bonds, Series 1995A, dated November 1, 1995 (the "Series 1995A Bonds"). The
refunding is being conducted to achieve interest cost savings.
The refunding will be conducted by means of a "crossover" refunding mechanism. The
proceeds of the Series 2004B Bonds will be placed in an escrow account with a bank or trust
company to be named by the City. The amount in the escrow account will be invested in
special obligations of the United States Treasury or other obligations of the United States or of
its agencies, which shall mature in such amounts and at such times as to be available to pay
debt service on the Series 2004B Bonds through the call date of the Series 1995A Bonds
(February 1, 2005). On the call date, the escrow account will cross over and pay the remaining
principal of the Series 1995A Bonds by calling in all of the 1995A Refunded Maturities at a price
of par plus accrued interest. Beginning with the August 1, 2005 interest payment the City will
start to make debt service payments on the Series 2004B Bonds, which shall have no principal
payments prior to the redemption in full of all outstanding Series 1995A Bonds.
Actuarial services necessary to insure the adequacy of the escrow account to provide timely
payment of the principal and interest for which the escrow account is obligated will be
performed by a certified public accounting firm.
Security and Financing
The Series 2004B Bonds are general obligations of the City for which the City pledges its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will
pledge tax increment revenues from its Tax Increment District Number 3. Interest payments
due through February 1, 2005 will be made from the escrow account. Each year's tax
increment collections, if collected in full, will be sufficient to pay 105% of the interest payment
due August 1 in the year of collection and the principal and interest payment due February 1 of
the following year.
FUTURE FINANCING .
The City does not anticipate issuing any additional debt within the next 90 days.
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LITIGATION
•
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional
Association, of Saint Paul and Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has
not participated in the preparation of this Official Statement and will not pass upon its accuracy,
completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or
verify, any of the financial or statistical statements, or data contained in this Official Statement
and will express no opinion with respect thereto. Legal opinions in substantially the form set out
as Appendix I to this Official Statement, will be delivered at closing.
TAX EXEMPTION — SERIES 2004A BONDS
At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion
that, at the time of their issuance and delivery to the original purchaser, under present federal
and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending
ip legislation which may have a retroactive effect), the interest on each Series 2004A Bond is
excluded from gross income for purposes of United States income tax and is excluded, to the
same extent, in computing both gross income and taxable net income for purposes of State of
Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed
on corporations and financial institutions), and that interest on the Series 2004A Bonds is not an
item of tax preference for purposes of computing the federal alternative minimum tax imposed
on individuals and corporations or the Minnesota alternative minimum tax applicable to
individuals, estates or trusts; provided that interest on the Series 2004A Bonds is subject to
federal income taxation to the extent it is included as part of adjusted current earnings for
purposes of computing the alternative minimum tax imposed on certain corporations. No
opinion will be expressed by Bond Counsel regarding other federal or state tax consequences
caused by the receipt or accrual of interest on the Series 2004A Bonds or arising with respect
to ownership of the Series 2004A Bonds. Preservation of the exclusion of interest on the Series
2004A Bonds from federal gross income and state gross and taxable net income, however,
depends upon compliance by the City with all requirements of the Internal Revenue Code of
1986, as amended, (the "Code") that must be satisfied subsequent to the issuance of the Series
2004A Bonds in order that interest thereon be (or continue to be) excluded from federal gross
income and state gross and taxable net income.
The City will covenant to comply with requirements necessary under the Code to establish and
maintain the Series 2004A Bonds as tax-exempt under Section 103 thereof, including without
limitation, requirements relating to temporary periods for investments and limitations on
amounts invested at a yield greater than the yield on the Series 2004A Bonds.
•
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OTHER FEDERAL TAX CONSIDERATIONS—SERIES 2004A BONDS
I
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of their loss
reserve deduction by 15% of the amount of tax-exempt interest received or accrued during the
taxable year on certain obligations acquired after August 7, 1986, including interest on the
Series 2004A Bonds.
Foreign Insurance Companies
Foreign companies carrying on an insurance business in the United States are subject to a tax
on income which is effectively connected with their conduct of any trade or business in the
United States, including "net investment income." Net investment income includes tax-exempt
interest such as interest on the Series 2004A Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the "dividend equivalent
amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's
"effectively connected earnings and profits" adjusted for increase or decrease in "U.S. net
equity." A branch's earnings and profits may include tax-exempt municipal bond interest, such
as interest on the Series 2004A Bonds.
•
Passive Investment Income of S Corporations
Passive investment income, including interest on the Series 2004A Bonds, may be subject to
federal income taxation under Section 1375 of the Code for an S corporation that has
Subchapter C earnings and profits at the close of the taxable year if more than 25% of the
gross receipts of such S corporation is passive investment income.
Financial Institutions
For federal income tax purposes, financial institutions are unable to deduct any portion of the
interest expense allocable to the ownership of certain tax-exempt obligations acquired after
August 7, 1986, including the Series 2004B Bonds. See "Bank-Qualified Tax-Exempt Bonds —
Series 2004B Bonds" below.
General
The preceding is not a comprehensive list of all federal tax consequences which may arise from
the receipt or accrual of interest on the Series 2004A Bonds. The receipt or accrual of interest
on the Series 2004A Bonds may otherwise affect the federal income tax (or Minnesota income
tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient
is subject and the particular tax status of other items of income or deductions. All prospective
purchasers of the Series 2004A Bonds are advised to consult their own tax advisors as to the
tax consequences of, or tax considerations for, purchasing or holding the Series 2004A Bonds.
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TAXABILITY OF INTEREST—SERIES 2004B BONDS
The interest to be paid on the Series 2004B Bonds is includable in the income of the recipient
for purposes of United States and State of Minnesota income taxation.
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS—SERIES 2004A BONDS
The City will designate the Series 2004A Bonds as "bank-qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to
the ability of financial institutions to deduct from income for federal income tax purposes,
interest expense that is allocable to carrying and acquiring tax-exempt obligations. "Qualified
tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986.
Interest allocable to such obligations remains subject to the 20% disallowance under prior law.
RATINGS
Application for ratings of the Bonds has been made to Moody's Investors Service ("Moody's"),
99 Church Street, New York, New York. If ratings are assigned, they will reflect only the
opinion of Moody's. Any explanation of the significance of the ratings may be obtained only
from Moody's.
• There is no assurance that ratings, if assigned, will continue for any given period of time, or that
such ratings will not be revised or withdrawn if, in the judgment of Moody's, circumstances so
warrant. A revision or withdrawal of the ratings may have an adverse effect on the market price
of the Bonds.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Advisors to the Public Sector, of St. Paul,
Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the
Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental
officials, and other sources, who have access to relevant data to provide accurate information
for the Official Statement, and the Financial Advisor has not been engaged, nor has it
undertaken, to independently verify the accuracy of such information. The Financial Advisor is
not a public accounting firm and has not been engaged by the City to compile, review, examine
or audit any information in the Official Statement in accordance with accounting standards. The
Financial Advisor is an independent advisory firm and is not engaged in the business of
underwriting, trading or distributing municipal securities or other public securities and therefore
will not participate in the underwriting of the Bonds.
•
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CERTIFICATION
•
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser(s) will be
furnished with a certificate signed by the appropriate officers of the City. The certificate will
state that as of the date of the Official Statement, the Official Statement did not and does not as
of the date of the certificate contain any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.
•
(The Balance of This Page Has Been Intentionally Left Blank)
•
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CITY PROPERTY VALUES
2002 Indicated Market Value of Taxable Property: $1,847,358,801*
* Calculated by dividing the county assessor's estimated market value of$1,479,734,400 by the 2002
sales ratio of 80.1% for the City as determined by the State Department of Revenue.
2002 Taxable Net Tax Capacity: $17,426,504
2002 Net Tax Capacity $19,066,393
Less: Captured Tax Increment Tax Capacity (2,515,034)
Contribution to Fiscal Disparities (2,383,104)
Plus: Distribution from Fiscal Disparities 3,258,249
2002 Taxable Net Tax Capacity $17,426,504
2002 Taxable Net Tax Capacity by Type of Property
Residential Homestead $ 9,359,467 53.71
Commercial/Industrial, Public Utility, Railroad,
and Personal Property* 6,117,006 35.10
Residential Non-Homestead 1,946,600 11.17
Agricultural 3,431 0.02
• Total $17,426,504 100.00%
* Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Indicated Estimated Taxable Net
Market Value(a) Market Value Tax Capacity(b)
2002 $1,847,358,801 $1,479,734,400 $17,426,504
2001 1,661,899,635 1,367,743,400 16,212,278
2000 1,453,688,431 1,269,070,000 20,924,326
1999 1,338,503,666 1,168,513,700 20,387,444
1998 1,190,969,348 1,095,691,800 18,903,047
(a) Calculated by dividing the county assessor's estimated market value by the sales ratio as certified for
the City each year by the State Department of Revenue.
(b) See Appendix Ill for an explanation of taxable net tax capacity, the Minnesota property tax law, and
2001 legislative changes to the Minnesota property tax system. The decrease in taxable net tax
capacity for 2001 was due primarily to reductions in property tax class rates, as detailed in
Appendix Ill.
•
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Ten of the Largest Taxpayers in the City
•
2002 Net
Taxpayer Type of Property Tax Capacity
Target Corporation Retail (Target Stores,
Mervyn's, and Marshall Fields) $ 411,150
Talisman Brookdale Assoc., LLC Brookdale Mall 399,250
Medtronic Inc. Industrial 218,970
Hennepin Co. Hotel Association Commercial 198,250
Brookdale Corner LLC Retail 195,250
TLN Lanel A Ltd Partnership Apartments 189,570
Regal Cinemas Inc. Theater 169,538
Wickes Furniture Company Industrial 160,000
Sears Roebuck and Co. Department Store 145,150
Brooklyn Center Ltd. Partners Commercial 141,850
Total $2,228,978*
rt Represents 12.8% of the City's 2002 taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit
0
Legal Debt Limit (2% of Estimated Market Value) $29,594,688
Less: Net Debt Subject to Limit (Including the Series 2004A
Bonds and excluding the 1997B Refunded Maturities) (5,526,000)
Legal Net Debt Margin as of November 2, 2003 $24,068,688
General Obligation Debt Supported by Taxes(a)
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-2-03
12-1-97 $7,900,000 Police and Fire Building 2-1-2005 $ 965,000(b)
1-1-04 5,080,000 Police and Fire Building Refunding
(the Series 2004A Bonds) 2-1-2013 5,080,000
Total $6,045,000
(a) These issues are subject to the statutory debt limit.
(b) Excludes the 1997E Refunded Maturities.
•
- 1 1 -
General Obligation Debt Supported Primarily by Taxes and/or Special Assessments
• Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-2-03
8-1-94 $ 835,000 mprovement 2-1-2005 $ 185,000
11-1-95 780,000 mprovement 2-1-2006 260,000
11-1-96 1,440,000 mprovement 2-1-2007 620,000
12-1-97 1,075,000 mprovement 2-1-2008 510,000 ,
12-1-98 1,085,000 mprovement 2-1-2009 615,000
12-1-99 1,585,000 mprovement 2-1-2010 1,090,000
12-1-00 735,000 mprovement 2-1-2011 575,000
12-1-01 730,000 mprovement 2-1-2012 645,000
1-1-03 1,205,000 mprovement 2-1-2013 1,205,000
Total $5,705,000
General Obligation Debt Supported by Tax Increments
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-2-03
3-1-91 $6,050,000 Tax Increment 2-1-2004 $1,425,000
0 11-1-95 4,560,000 Taxable Tax Increment 2-1-2005 710,000*
1-1-04 2,490,000 Taxable Tax Increment Refunding
(the Series 2004B Bonds) 2-1-2011 2,490,000
Total $4,625,000
* Excludes the 1995A Refunded Maturities.
General Obligation Debt Supported by Revenues
(State Allocations and Enterprise Revenues)
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-2-03
8-1-94 $1,830,000 Storm Sewer Revenue 2-1-2005 $ 450,000
12-1-98 1,585,000 State-Aid Road Refunding 4-1-2006 845,000
Total $1,295,000
•
- 12 -
Annual Calendar Year Debt Service Payments Including These Issues and Excluding
the 1997B Refunded Maturities and the 1995A Refunded Maturities
•
G.O. Debt Supported
G.O. Debt Supported Primarily by Taxes
by Taxes and/or Special Assessments
Principal Principal
Year Principal & Interest(a) Principal & Interest
2003 (at 11-2) (Paid) (Paid) (Paid) (Paid)
2004 $ 470,000 $ 502,367.50 $1,005,000 $1,223,456.25
2005 495,000 578,127.50 990,000 1,167,697.50
2006 580,000 719,587.50 880,000 1,018,448.75
2007 590,000 718,900.00 790,000 893,033.75
2008 600,000 715,652.50 615,000 688,247.50
2009 620,000 719,927.50 510,000 559,537.50
2010 640,000 721,802.50 395,000 425,052.50
2011 655,000 716,395.00 240,000 256,336.25
2012 685,000 723,428.75 175,000 182,747.50
2013 710,000 723,135.00 105,000 107,100.00
Total $6,045,000 $6,839,323.75 $5,705,000 $6,521,657.50
G.O. Debt Supported G.O. Debt Supported
by Tax Increments by Revenues
Principal Principal •
Year Principal & Interest(b) Principal & Interest
2003 (at 11-2) (Paid) (Paid) (Paid) (Paid)
2004 $1,775,000 $1,853,060.00 $ 490,000 $ 536,100.00
2005 360,000 468,984.58 510,000 533,470.00
2006 410,000 499,635.00 295,000 300,900.00
2007 425,000 505,410.00
2008 410,000 478,297.50
2009 415,000 468,742.50
2010 415,000 452,765.00
2011 415,000 434,920.00
Total $4,625,000 $5,161,814.58 $1,295,000 $1,370,470.00
(a) Includes the Series 2004A Bonds at an assumed average annual interest rate of 3.10% and excludes
the 1997B Refunded Maturities.
(b) Includes the Series 2004B Bonds at an assumed average annual interest rate of 3.90% and excludes
the 1995A Refunded Maturities.
•
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Summary of General Obligation Direct Debt
• Gross Less: Debt Net
Debt Service Funds(a) Direct Debt
Supported by Taxes $6,045,000 $ (519,000) $5,526,000
Supported Primarily by Taxes and/or
Special Assessments 5,705,000 (2,370,000) 3,335,000
Supported by Tax Increments 4,625,000 (226,000) 4,399,000
Supported by Revenues 1,295,000 (b) 1,295,000 ,
(a) Debt service funds are as of October 31, 2003 and include money to pay both principal and interest.
(b) The State Aid Road Refunding Bonds are paid from allotments made by the State of Minnesota
Municipal State Aid Highway Fund;and the Storm Sewer Bonds are paid directly from net revenues of
the Storm Drainage Enterprise Fund.
Indirect General Obligation Debt
Debt Applicable to
2002 Taxable G.O. Debt Tax Capacity in City
Taxing Unit(a) Net Tax Capacity As of 11-2-030b1 Percent Amount
Hennepin County $ 987,427,336 $372,720,000 1.8% $ 6,708,960
Hennepin County
Regional Railroad 987,427,336 49,395,000 1.8 889,110
Hennepin Parks 736,733,176 33,595,000 2.4 806,280
0 ISD 11 (Anoka-Hennepin) 136,345,729 171,873,637 1.6 2,749,978
ISD 279 (Osseo) 93,552,554 214,705,000 6.1 13,097,005
ISD 281 (Robbinsdale) 72,136,094 122,780,000 5.8 7,121,240
ISD 286 (Brooklyn Center) 5,410,670 41,685,000 100.0 41,685,000
Metropolitan Council 2,159,346,919 24,290,000(c1 0.8 194,320
Metropolitan Transit 1,881,444,406 160,085,000 0.9 1,440,765
Total $74,692,658
(a) Only those taxing units with debt outstanding are shown here.
(b) Excludes general obligation tax and aid anticipation debt and revenue supported debt.
(c) Excludes outstanding general obligation bonds and loans supported by sanitary sewer system
revenues, 911 user fees or housing rental revenues.
Debt Ratios
G.O. Net G.O. Indirect &
Direct Debt* Net Direct Debt `
To 2002 Indicated Market Value ($1,847,358,801) 0.72% 4.76%
Per Capita (29,185—2002 State Demographer's Estimate) $454 $3,014
* Excludes general obligation debt supported by revenues.
0
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CITY TAX RATES, LEVIES AND COLLECTIONS
•
Tax Capacity Rates for City Resident in Independent School District 286
2002/03
For
1998/99 1999/00 2000/01 2001/02 Total Debt Only
Hennepin County 40.994% 39.655% 37.624% 50.409% 50.607% 3.940%
City of Brooklyn Center(a) 36.998 35.369 36.797 58.901 54.021 1.475
ISD 286 (Brooklyn Center)(b) 59.807 44.356 47.211 26.338 49.817 33.283
Special Districts(c) 8.553 8.426 8.126 7.068 7.757 3.092
Total 146.352% 127.806% 129.758% 142.716% 162.202% 41.790%
(a) The City also has a 2002/03 tax rate of 0.05290%spread on the market value of property in support of
debt service.
(b) Independent School District 286 (Brooklyn Center) also has a 2002/03 tax rate of 0.17224% spread
on the market value of property in support of an excess operating levy.
(c) Special districts include Met Council, Mosquito Control, Met Transit, Hennepin Park Museum,
Hennepin County Regional Rail Authority, and Hennepin County Parks.
NOTE: Property taxes are determined by multiplying the net tax capacity by the tax capacity rate
expressed as a percentage. (See Appendix Ill.)
Tax Levies and Collections •
Collected During Collected
Net Collection Year As of 12-31-02
Levy/Collect Lam* Amount Percent Amount Percent
2002/03 $10,142,006 (In Process of Collection)
2001/02 9,554,090 $9,262,642 96.9% $9,262,642 96.9%
2000/01 8,398,669 8,132,527 96.8 8,344,571 99.4
1999/00 8,096,388 8,044,803 99.4 8,068,749 99.7
1998/99 7,880,606 7,824,102 99.3 7,859,058 99.7
The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy
is the basis for computing tax capacity rates. The net levy starting in 2001/02 was affected by
legislative changes in 2001 to the Minnesota property tax law. See Appendix Ill.
40
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FUNDS ON HAND
• As of October 31, 2003
Fund Cash and Investments
General $ 6,000,000
Special Revenue 6,000,000
Capital Projects 1,500,000
Debt Service:
Special Assessment 2,370,000
Tax Increment 226,000
Building Improvement 519,000
Enterprise 6,000,000
Internal Service 6,600,000
Total $29,215,000
CITY INVESTMENTS
The City's investment policy, last revised in July 2001, has the objectives of preserving safety of
principal, retaining sufficient liquidity, providing a market rate of return, and yielding a stable
return on all invested City funds.
Minnesota Statutes, Chapter 118A, authorize and define an investment program for municipal
governments. The City shall invest in the following instruments allowed by Minnesota Statutes:
a. Securities that are the direct obligations or are guaranteed or insured issues of the
United States, its agencies, its instrumentalities, or organizations created by an act of
Congress; including governmental bills, notes, bonds, and other securities.
b. Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is
rated in the highest quality by at least two nationally recognized rating agencies and
matures in 270 days or less. These investments are limited by City policy to funds that
are professionally managed and include a mix of investments.
c. Time deposits that are fully insured by the Federal Deposit Insurance Corporation or
bankers acceptances of U.S. banks.
d. Repurchase agreements and reverse repurchase agreements may be entered into with
financial institutions identified by Minnesota Statutes, Chapter 118A.
e. Securities lending agreements may be entered into with financial institutions identified
by Minnesota Statutes, Chapter 118A.
f. Minnesota joint powers investment trusts may be entered into with trusts identified by
Minnesota Statutes, Chapter 118A
g. Money market mutual funds regulated by the Securities and Exchange Commission and
whose portfolios consist only of short-term securities permitted by Minnesota Statutes,
Chapter 118A.
- 16 -
h. Bonds of the City of Brooklyn Center issued in prior years may be redeemed at current
market price, which may include a premium, prior to maturity using surplus funds of the •
debt service fund set up for that issue. Such repurchased bonds shall be canceled and
removed from the obligation of the fund.
Derivative securities, which obtain their value by the calculation of some portion of the value of
another security, shall not be purchased. Mortgage-backed securities, even if insured by a
Federal Agency, and stripped securities also shall not be purchased, pursuant to the policy.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation
of capital in the overall portfolio. Safety of principal is the foremost objective.
Liquidity and yield are also important considerations. It is essential that the investment portfolio
remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
The investment portfolio of the City shall be designed to attain a market-average rate of return
during budgetary and economic cycles, taking into account the City's investment risk
constraints and liquidity needs. Return on investment is of least importance compared to the
objectives for safety and liquidity. Securities shall be held to maturity with the exceptions of
meeting the liquidity needs of the portfolio and minimizing loss of principal for a security of
declining credit. Securities of various maturities shall be purchased so that at least half of the
investment portfolio will remain for two or more years with known interest rates.
Authority to manage the investment program is vested in the City Manager, City Treasurer, and
Assistant City Treasurer, with the City Treasurer responsible for establishing and maintaining
an internal control structure to provide reasonable assurance that the objectives of the policy
are met.
•
As of October 31, 2003 the City had $29,215,000 (par value) invested, with a market value of
$29,661,000 (100% of the original cost to the City). U.S. Treasury notes represented 3% of the
City's portfolio, with $800,000 invested. Government agency securities totaled $21,720,000,
representing 74% of the portfolio. The balance, representing 23% of the portfolio, is in money
market accounts. Twenty-nine percent of the City's portfolio matures within three years or less,
17% matures within six years or less, and none of the securities held by the City has a maturity
later than 2017.
GENERAL INFORMATION CONCERNING THE CITY
The City of Brooklyn Center is a northern suburb of the Minneapolis/Saint Paul metropolitan
area, lying adjacent to the City of Minneapolis. The City is wholly within Hennepin County and
encompasses an area of approximately 8.5 square miles. The Mississippi River forms the
City's eastern boundary.
The City experienced its most rapid growth from 1950 to 1970 when the City's population grew
from 4,300 to its peak of 35,173. The current 2002 State Demographic Center estimate count
for the City was 29,185, a 0.02% increase from the 2000 Census. The 2000 U.S. Census count
for the City was 29,172, a 1.0% increase from the 1990 Census. The number of housing units
has generally continued to increase from 10,493 in 1970 to 11,035 in 1980, 11,370 in 1990,
11,430 in 2000 and 11,432 in 2001.
•
Major transportation routes in and through the City, including Interstate Highways 94 and 694
and State Highways 100 and 252, have provided a continued impetus for development of a
strong commercial tax base in the City.
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Growth and Development
4110 Commercial and industrial property comprises 35% of the City's taxable net tax capacity. There
are four major shopping centers located in the City in addition to a large number of retail
establishments, including Kohl's Department Store, Cub Foods, and Rainbow Foods. The
largest commercial property in the City is Brookdale Mall, a 1,000,000-square-foot regional
shopping center anchored by Marshall Field's, Sears, JC Penney, and Mervyn's. Remodeling
and construction activity at Brookdale is nearly complete. In addition to the facility owner
investment, several tenants, including Marshall Field's, have made a significant investment in
upgrades. A new Old Navy and Barnes and Noble retail outlets are now open. During
construction and remodeling, the mall has experienced some vacancies.
The other three retail shopping centers include Brookdale Square, a 125,000-square-foot strip •
mall center plus an eight-screen theater; Shingle Creek Center, a 157,000-square-foot building
anchored by Target; and Brookview Plaza, a 70,000-square-foot center anchored by Best Buy.
Another free-standing retail establishment includes the Regal Cinema Theater, an 85,000-
square-foot, 20-screen theater that opened in the summer of 2000.
The convergence of highways in Brooklyn Center make it an attractive site for hotels and
motels. Establishments now operating here include: Americlnn, Best Western, Baymont Inn,
Comfort Inn, County Inn & Suites, Extended Stay America Hotel, Hilton Hotel, Motel 6, and
Super 8 Motel.
Summary of Building Permits
• New Residential
Total Permits Permits only
Year Number Value Number Value
2003 (at 10-31) 789 $51,361,068 7 $ 765,000
2002 476 50,701,779 2 280,000
2001 954 63,720,613 0 -0-
2000 1,299 20,450,844 3 311,800
1999 1,745 44,188,569 7 679,600
1998 1,482 23,216,525 4 612,900
1997 796 18,274,806 3 225,000
1996 607 16,647,400 18 1,126,000
1995 603 11,945,264 2 153,000
1994 604 13,038,263 9 587,000
1993 520 11,437,250 7 505,000
•
- 18-
Major Employers in the City
•
Approximate
Number
Employer Product/Service of Employees
Brookdale Center Shopping Center 1,700
Graco, Inc. Spray Paint Equipment 832
Promeon, Div. of Medtronics Medical Components 300
Target Retail 200
Cub Foods Grocery 180
Ault, Inc. Manufacturing 150
TCR Corporation Metal Components 135
Cass Screw Machine Products Screw Machine Parts 123
Best Buy Electronic Retail 110
Kohl's Retail 100
Precision Inc. Electronic Transformers and Coils 100
Creative Banner Assemblies Banners and Flags 63
Northwest Athletic Club Health Club 53
Hiawatha Rubber Company Custom Rubber Molder 52
Source: Telephone survey of individual employers, conducted July 2003.
Labor Force Data
September 2003 September 2002
Civilian Unemployment Civilian Unemployment •
Labor Force Rate Labor Force Rate
Hennepin County 697,310 4.8% 698,925 4.5%
Minneapolis/St. Paul MSA 1,826,881 4.6 1,828,463 4.3
Minnesota 2,928,375 4.4 2,920,134 4.1
Source: Minnesota Department of Economic Security. 2003 data are preliminary.
Financial Institutions
Branch facilities of financial institutions located in Brooklyn Center include: Wells Fargo
Minnesota, National Association; Bremer Bank, National Association; and TCF National Bank
Minnesota, as well as numerous credit unions.
Source: http://www.ffiec.gov/nic
•
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Education
The City is served by four independent school districts: ISD 11 (Anoka-Hennepin), ISD 279
(Osseo), ISD 281 (Robbinsdale) and ISD 286 (Brooklyn Center). The City's taxable net tax
capacity is attributable to each of the four school districts as follows:
Portion of 2002 Taxable Net Tax
Capacity Located in the City % of Total
ISD 286 (Brooklyn Center)* $ 5,410,670 31.0%
ISD 281 (Robbinsdale) 4,146,744 23.8
ISD 279 (Osseo) 5,694,722 32.7
ISD 11 (Anoka-Hennepin) 2,174,368 12.5
Total $17,426,504 100.0°A)
* ISD 286 is located entirely within the City of Brooklyn Center.
Medical
Major medical facilities in the Minneapolis/St. Paul metropolitan area are easily accessible to all
City residents. North Memorial Medical Center is located in the adjacent City of Robbinsdale
and has 518 acute care beds. Unity Hospital is located in the adjacent City of Fridley and has
275 acute care beds.
Source: http://www.health.state.mn.us/divs/fpc/directory/fpcdir.html
S
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Brooklyn Center has been a municipal corporation since 1911, and is governed under a Home
Rule Charter adopted in 1966 and subsequently amended. The City has a Council-Manager
form of government. The Mayor and four Council Members are elected to serve overlapping
four-year terms.
Individuals comprising the current City Council are listed below:
Expiration of Term
Myrna Kragness Mayor December 31, 2006
Kathleen Carmody Council Member December 31, 2006
Kay Lasman Council Member December 31, 2004
Diane Niesen Council Member December 31, 2006
Robert Peppe Council Member December 31, 2004
The City Manager, Mr. Michael J. McCauley, is responsible for the administration of Council
policy and the daily management of the City. The Manager is appointed by the Council and
serves at its discretion. Mr. McCauley has served the City in the position of City Manager since
December 1995.
- 20 -
The acting Director of Fiscal and Support Services, Mr. Curt Boganey, is responsible for
directing the City's financial operations, including preparation of the annual financial report and •
interim reports, and the investment of City funds.
Services
The City has 154 full-time employees serving in various departments. Forty-two full-time sworn
police officers and a support staff of 14 provide protective services in the City. Fire protection is
provided by one full-time member and a 48-member volunteer force. The City has two fire
stations and a class 5 insurance rating.
All areas of the City are serviced by municipal water and sewer systems. Water is supplied by
nine wells and storage is provided by three elevated tanks with a combined total capacity of
3.0 million gallons. The municipal water system has a pumping capacity of 17.6 million gallons
per day (mgd). The average daily water demand is estimated to be 2.5 mgd and peak demand
is estimated to be 10 mgd. Water connections totaled 8,934 as of December 31, 2002.
Although the City owns and maintains its own sanitary and storm sewer collection systems,
wastewater treatment facilities are owned and operated by the Metropolitan Council's Office of
Environmental Services. The City is billed an annual service charge by Met Council, which
charge is adjusted each year based on the prior years' actual usage. The City had 8,786 sewer
connections at the end of 2002.
During 2002, the City leased space for the operation of its municipal liquor store facility. The
City entered into a 10-year lease, which began in June 2000, with an option of an additional
10-year extension. Total rental expense under the lease agreements for the years ending •
December 31, 2002 and 2001 were $158,702 and $140,873, respectively. Future lease
payments are predicted on a formula that includes a base rate rent, property taxes, and gross
revenues.
City offices are located in the Brooklyn Center Civic Center which was constructed in 1971. City
Hall was upgraded in 2002 to add additional technology and customer service abilities. The
Civic Center was remodeled and upgraded in 2002 expanding exercise and game rooms and
adding classrooms and craft rooms. The 300-seat hall and 50-meter indoor/outdoor swimming
pool were upgraded. The City maintains 527 acres of parkland, much of which is located along
Shingle Creek forming a "green way" north to south through the City. Recreational facilities
include a par 3 nine-hole golf course, 20 playgrounds, softball and baseball diamonds,
basketball courts, tennis courts, hockey and skating rinks, nature areas, trails, and an
arboretum.
•
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2003 General Fund Budget Summary
Revenues: Expenses:
Property Taxes $ 9,837,474 General Government $ 2,566,379
Sales Tax (Lodging) 700,000 Public Safety 6,222,250
Fines and Forfeitures 200,000 Public Works 2,964,216
Licenses and Permits 612,720 Social Services 93,105
Intergovernmental Revenue 2,999,185 Parks and Recreation 1,427,860
Service Charges 683,892 Convention and Tourism 332,500
Miscellaneous Revenue 375,000 Community Development 423,085
Nondepartmental 514,466
Transfer-out 1,648,494
Administrative Service
Reimbursement (784,084)
Total Revenues $15.408.271 Total Expenses $15.408.271
Action taken by the 2003 Minnesota Legislature provided for total reductions in City Aid
(formerly titled Local Government Aid and Market Value Homestead Credit) of $142,000,000 in
collection year 2003 and $170,000,000 in collection year 2004. The effect of these changes to
the City is a reduction in aid of approximately $1.2 million in 2003 and $1.7 million in 2004.
Minnesota law allows the City to levy for 60% of the lost aid during the levy cycle payable in
2004.
The City anticipates taking the following action to cope with the state mandated reduction in
• aids:
• The City will reduce the number of employees through retirement and normal attrition.
• Certain programs and activities will be cut to further reduce expenditures.
The City has a balanced budget for 2003 and expects to have a balanced budget for 2004.
Employee Pension Plans
All full-time and certain part-time employees of the City of Brooklyn Center are covered by
defined benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the
Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-Employer
retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated members are covered by Social Security and Basic members are not. All new
members must participate in the Coordinated Plan. All police officers, fire fighters and peace
officers who qualify for membership by statute are covered by the PEPFF. The City's
contributions to PERF for the years ending December 31, 2002, 2001, and 2000 were
$299,954, $296,052, and $299,879, respectively. The City's contributions to PEPFF for the
years ended December 31, 2002, 2001, and 2000 were $255,923, $239,799, and $223,541,
respectively. The contributions were equal to the required contributions for each year.
The City contributes to the Brooklyn Center Fire Department Relief Association, a single-
Employer public employee retirement system. The City levies property taxes at the direction of
and for the benefit of the Association and passes through State-aids allocated to the
• Association, all in accordance with enabling State statutes. City and State-aid contributions
totaled $16,239 and $102,269, respectively, in 2002. The actuarial valuation performed at
January 1, 2001 was $56,879, which represents funding for normal cost of $45,795, and
administration costs of$11,084.
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APPENDIX III
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION •
(effective through payable 2003 with 2003 Legislative changes incorporated)
Following is a summary of certain statutory provisions effective through payable 2003 relative to
tax levy procedures, tax payment and credit procedures, and the mechanics of real property
valuation. The summary does not purport to be inclusive of all such provisions or of the specific
provisions discussed, and is qualified by reference to the complete text of applicable statutes,
rules and regulations of the State of Minnesota.
Chapter 21, Laws of Minnesota Special Session 2003-1 was passed by the 2003 Minnesota
Legislature and signed by the Governor on June 8, 2003. The enactment of this legislation
caused changes for payable years 2003 and thereafter. These changes are incorporated in the
following discussions.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by
statute, be appraised at least once every five years as of January 2 of the year of appraisal.
With certain exceptions, all property is valued at its market value, which is the value the
assessor determines to be the price the property to be fairly worth, and which is referred to as
the "Estimated Market Value."
Limitation of Market Value Increases. Minn. Stat., Sec. 273.11, Subdivision la, was amended
in 2001 to provide for a full phase-out of Limited Market Value, arriving at 100% of the
assessor's estimated market value in the 2007 assessment year. Beginning with assessment
year 2003, the amount of the increase shall not exceed the greater of (1) 12% of the value in
the preceding assessment, or (2) 20% of the difference between the current assessment and
the preceding assessment. For assessment year 2004, the amount of the increase shall not
exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 25% of the
difference between the current assessment and the preceding assessment. For assessment
year 2005, the amount of the increase shall not exceed the greater of (1) 15% of the value in
the preceding assessment, or (2) 33% of the difference between the current assessment and
the preceding assessment. For assessment year 2006, the amount of the increase shall not
exceed the greater of (1) 15% of the value in the preceding assessment, or (2) 50% of the
difference between the current assessment and the preceding assessment.
Indicated Market Value. Because the Estimated Market Value as determined by an assessor
may not represent the price of real property in the marketplace, the "Indicated Market Value" is
generally regarded as more representative of full value. The Indicated Market Value is
determined by dividing the Estimated Market Value of a given year by the same year's sales
ratio determined by the State Department of Revenue. The sales ratio represents the overall
relationship between the Estimated Market Value of property within the taxing unit and actual
selling price.
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied,
extended and collected. The Net Tax Capacity is computed by applying the class rate
percentages specific to each type of property classification against the Estimated Market Value.
Class rate percentages vary depending on the type of property as shown on the last page of
this Appendix. The formulas and class rates for converting Estimated Market Value to Net Tax
Capacity represent a basic element of the State's property tax relief system and are subject to
annual revisions by the State Legislature. •
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate,
expressed as a percentage.
III-1
•
Property Tax Payments and Delinquencies
• (Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and
collected by the various counties within the State. Each taxing jurisdiction is required to certify
the annual tax levy to the county auditor within five (5) working days after December 20 of the
year preceding the collection year. A listing of property taxes due is prepared by the county
auditor and turned over to the county treasurer on or before the first business day in March.
The county treasurer is responsible for collecting all property taxes within the county. Real
estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the
taxes on real property is due on or before May 15. The remainder is due on or before
October 15. Real property taxes not paid by their due date are assessed a penalty that,
depending on the type of property, increases from 2% to 4% on the day after the due date. In
the case of the first installment of real property taxes due May 15, the penalty increases to 4%
or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax. However, personal property that is owned by a tax-exempt entity, but is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties
as real property.
On the first business day of January of the year following collection all delinquencies are
subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a
publication of legal action and a mailing of notice of action to delinquent parties. Those
property interests not responding to this notice have judgment entered for the amount of the
delinquency and associated penalties. The amount of the judgment is subject to a variable
interest determined annually by the Department of Revenue, and equal to the adjusted prime
rate charged by banks, but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural
homestead and seasonal residential recreational property located within cities or three (3) years
with respect to other types of property to redeem the property. After expiration of the
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the
State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof,
then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel,
with any remaining balance in most cases being divided on the following basis: county - 40%;
town or city - 20%; and school district-40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker
credit, which relates property taxes to income and provides relief on a sliding income scale; and
targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
. the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid,
equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid.
HACA has been repealed for cities, school districts, and townships and applies only to counties.
III-2
Levy Limitations for Counties and Cities (M.S. 275.70 to 275.74)
Levy limitations are in effect for property taxes levied in 2003 and payable in 2004 for all •
counties and those cities with populations over 2,500. In calculating levy limits, the starting
point is the local government's levy limit base for property taxes payable in 2003, less any
unused levy authority, less 40% of the 2004 estimated Local Government Aid (LGA) reduction.
Significantly, cities that did not levy to the limit for taxes payable in 2003 are penalized in that
their unused levy authority is eliminated. Additionally, cities are authorized to levy to replace
only 60% of the 2004 LGA reduction. A referendum to seek an increase over this statutory levy
limit, effective for the current levy year, may be held up until the November general election.
Certain property tax levies are authorized outside of the new overall levy limitation ("special
levies"). Special levies do not include levies for bonded indebtedness on installment payments
on conditional sales contracts, state-aid road bonds, contracts for deed, tax increment revenue
bonds, and lease payments under certificates of participation. In order to receive approval for
any special levy claims outside of the overall levy limitation, requests for such special levies
must be submitted to the Property Tax Division of the Department of Revenue on or before
September 15th in the year in which the levy is to be made for collection in the following year.
The Department of Revenue has the authority to approve, reduce or deny a special levy
request. Home-rule charter cities now are authorized to exceed any levy limits and referendum
requirements contained in their city charters and increase their property tax levies if such
increases are necessary to offset the 2004 LGA reductions. Final adjustments to all levies
must be made by the Department of Revenue on or before December 10th.
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory .
"net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is
defined as the amount remaining after deducting from gross debt the amount of current
revenues that are applicable within the current fiscal year to the payment of any debt and the
aggregate of the principal of the following:
1. Obligations issued for improvements that are payable wholly or partially from the
proceeds of special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems,
and public lighting, heating or power systems, and any combination thereof, or for any
other public convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their
issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than •
those described above.
III-3
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies
to the county auditor of the county(ies) within which the municipality is situated. Such levies
shall be in an amount that if collected in full will, together with estimates of other revenues
pledged for payment of the obligations, produce at least five percent in excess of the amount
needed to pay principal and interest when due. Notwithstanding any other limitations upon the
ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for
payment of general obligation indebtedness is without limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
"Fiscal Disparities Law"
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as
"Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott,
excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax
base. A distribution index, based on the factors of population and real property market value
per capita, is employed in determining what proportion of the net tax capacity value in the area-
wide tax base shall be distributed back to each assessment district.
(The Balance of This Page Has Been Intentionally Left Blank)
•
III-4
STATUTORY FORMULAE
CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR •
MAJOR PROPERTY CLASSIFICATIONS
Net Tax
Net Tax Capacity Net Tax Capacity Levy Year
General Classifications Levy Year 1999 Levy Year 2000 2001, 2002, 2003
Residential Homestead First$76,000 of EMV at First$76,000 of EMV at See next page.
1.00% 1.00%
EMV in excess of$76,000 EMV in excess of$76,000
at 1.65% at 1.65%
Residential Non-Homestead 2.40%; except certain 2.40%; except certain See next page.
4 or more units cities of 5,000 cities of 5,000
population or less at population or less at
2.15% 2.15%
Agricultural Homestead First$76,000 EMV of First$76,000 EMV of See next page.
house, garage and 1 house, garage and 1
acre at 1.00% acre at 1.00%
EMV in excess of$76,000 EMV in excess of$76,000
of house, garage and 1 of house, garage and 1
acre at 1.65% acre at 1.65%
Remaining Property: Remaining Property:
First$115,000 of EMV at First$115,000 of EMV at
0.35% 0.35%
EMV in excess of EMV in excess of
$115,000 and less than $115,000 and less than •
$600,000 at 0.80% $600,000 at 0.80%
EMV in excess of EMV in excess of
$600,000 at 1.20% $600,000 at 1.20%
Agricultural Non-Homestead First$76,000 of EMV of First$76,000 of EMV of See next page.
house, garage and 1 house, garage and 1
acre at 1.20% acre at 1.20%
EMV in excess of$76,000 EMV in excess of$76,000
of house, garage and 1 of house, garage and 1
acre at 1.65% acre at 1.65%
EMV of land and other EMV of land and other
buildings at 1.20% buildings at 1.20%
Commercial-Industrial First$150,000 of EMV at First$150,000 of EMV at See next page.
2.40% 2.40%
EMV in excess of EMV in excess of
$150,000 at 3.40% $150,000 at 3.40%
Seasonal/Recreational Non-Commercial Non-Commercial See next page.
Residential First$76,000 of EMV at First$76,000 of EMV at
1.20% 1.20%
EMV in excess of EMV in excess of
$76,000 at 1.65% $76,000 at 1.65%
Commercial— 1.60% Commercial— 1.60%
Homestead Resorts— Homestead Resorts—
1.00% 1.00%
Vacant Land N/A N/A See next page.
(All vacant land is (All vacant land is •
reclassified to highest and reclassified to highest and
best use pursuant to local best use pursuant to local
zoning ordinance) zoning ordinance)
III-5
2001 PROPERTY TAX AMENDMENTS
1111
The Omnibus Tax Bill adopted by the Minnesota Legislature during the First Special Session in
2001 (the "Tax Bill") made numerous changes to the property tax system. Among its
provisions, the Tax Bill provided for the assumption by the State of Minnesota of the general
education property tax levy and certain transit costs; increased the appropriation for Local
Government Aids by $140,000,000; re-imposed levy limits for two years on counties and cities
over 2,500 in population; repealed the Homestead and Agricultural Credit Aid for cities, school
districts and townships; provided for the gradual elimination of Limited Market Valuation; and
compressed the class rates applicable to various classes of property.
2001 Class Rate Changes Local Tax Local Tax Local Tax
Payable Payable Payable
Property Type 2001 2002 2003
Residential Homestead
Up to$76,000 1.000% 1.000% 1.000%
$76,000-$500,000 1.650% 1.000% 1.000%
Over$500,000 1.650% 1.250% 1.250%
Residential Non-homestead
Single Unit
Up to$76,000 1.200% 1.000% 1.000%
$76,000-$500,000 1.650% 1.000% 1.000%
Over$500,000 1.650% 1.250% 1.250%
2-3 unit and undeveloped land 1.650% 1.500% 1.250%1
Market Rate Apartments
Regular 2.400% 1.800%2 1.500%2
Small City 2.150% 1.800%2 1.500%2
• Low-Income 1.000% 0.900%3 1.000%3
Commercial/Industrial/Public Utility
Up to$150,000 2.400% 1.500% 1.500%
Over$150,000 3.400% 2.000% 2.000%
Electric Generation Machinery 3.400% 2.000% 2.000%
Seasonal Recreational Commercial
Homestead Resorts(1 c)
Up to$500,000 1.000% 1.000% 1.000%
Over$500,000 1.000% 1.250% 1.250%
Seasonal Resorts (4c)
Up to$500,000 1.650% 1.000% 1.000%
Over$500,000 1.650% 1.250% 1.250%
Seasonal Recreational Residential
Up to$76,000 1.200% 1.000%4 1.000%4
$76,000-$500,000 1.650% 1.000%4 1.000%4
Over$500,000 1.650% 1.250%4 1.250%4
Disabled Homestead 0.450% 0.450% 0.450%
Agricultural Land&Buildings
Homestead
Up to$115,000 0.350% 0.550%4 0.550%4
$115,000-$600,000 0.800% 0.550%4 0.550%4
Over$600,000 1.200% 1.000%4 1.000%4
Non-homestead 1.200% 1.000%4 1.000%4
1 Rate reduced to 1.25% in pay 2003 and thereafter.
2 Rate reduced to 1.5%in pay 2003 and 1.25%in pay 2004 and thereafter.
0 3 Rate increased to 1% in pay 2003,classification abolished thereafter.
4 Exempt from referendum market value tax.
III-6
APPENDIX IV .
ANNUAL FINANCIAL STATEMENTS
•
The City is audited annually by an independent certified public accounting firm. Data on the
following pages has been extracted from the City's financial audited statements for years
ending December 31, 2002, 2001, and 2000. Governmental funds and expendable trust funds
are accounted for using the modified accrual basis of accounting. Proprietary funds are
accounted for using the accrual basis of accounting. The reader should be aware that the
complete audited financial statements may contain additional data relating to the information
presented here, which may interpret, explain or modify it.
The City's comprehensive annual financial reports for the years ending 1983 through 2001 were
awarded the Certificate of Achievement for Excellence in Financial Reporting by the
Government Finance Officers Association of the United States and Canada (GFOA). The
Certificate of Achievement is the highest form of recognition for excellence in state and local
government financial reporting.
In order to be awarded the Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents
conform to program standards. Such CAFR must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City believes its CAFR
continues to conform to the Certificate of Achievement program requirements and has
submitted its CAFR for the 2002 fiscal year to GFOA.
•
•
IV-1
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City of Brooklyn Center
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
•
All Governmental Fund Types •
For the Year Ended December 31,2002
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 2002 2001
Taxes and special assessments $11257,003 $3,222,992 5928,559 $260,752 $15,669,306 $13,863,278
Licenses and permits 823,996 823,996 788,629
Intergovernmental 2,843,629 487,780 292,014 3,416,472 7,039,895 5,824,513
Charges for services 575,748 575,748 688,453
Court fines 278,557 278,557 230,408
Investment earnings 211,198 190,496 110,099 154,757 666,550 1,020,291
Change in fair value of investments (5,858) (4,963) (3,054) (4,252) (18,127) 1,062,389
Miscellaneous 106,963 134,306 26,448 267,717 150.369
Total Revenues 16,091,236 4,030,611 1,327,618 3,854,177 25,303,642 23,628.330
Expenditures
Current
General government 2,553,426 2,553,426 2,504,392
Public safety 6,184,663 70.558 6,255,221 5,672,098
Public works 1,986,692 1,986,692 2,142,064
Community services 103,491 103,491 106,034
Parks and recreation 2,026,409 99,006 2,125,415 2,392,168
Economic development 340,659 1,754,886 2.095,545 2,365,732
Non departmental 366,282 366,282 372,056
Administrative Services Reimbursement (596,541) (596,541) (767,504)
Capital outlay 9,608.420 9,608,420 6,558,17.
Debt service:
Principal retirement 3,000,000 3,000,000 2,805,000
Interest and fiscal charges 1,062,851 1,062,851 1,339.093
Total Expenditures 12,965,081 1,924,450 4,062,851 9,608,420 28,560,802 25,489,310
Excess(Deficiency)of Revenues
Over Expenditures 3,126,155 2,106,161 (2,735233) (5.754,243) (3,257,160) (1,860,980)
Other Financing Uses(-)or Sources
Proceeds from sale of bonds 730,000
Sale of land 474,648 474,648 572,266
Operating transfers in 208,266 3,003,910 1,051,277 4,263,453 4,124,184
Operating transfers out (1,863,910) (2,199,543) (4,063,453) (3,798.684)
Total Other Financing(Uses)Sources (1,863,910) (1,516,629) 3,003,910 1,051277 674,648 1,627,766
Excess(Deficiency)of Revenues and Other •
Sources Over Expenditures and Other Uses . 1,262,245 589,532 268,677 (4,702,966) (2,582,512) (233,214)
Fund Balances January 1,as previously reported 7,433,872 3,864,347 5,472,514 6,880,492 23,651,225 23,884,439
Prior period adjustment 419,376 419,376
Fund Balances January 1,as restated 7,433,872 3,864,347 5,472,514 7,299,868 24,070,601 23,884,439
Equity transfers(Out)In (766.343) 766,343
Fund Balances December31 $7,929,774 $4,453,879 55,741,191 $3,363,245 $21,488,089 $23,651,225
•
IV-5
City of Brooklyn Center
• All Governmental Fund Types
For the Year Ended December 31,2001
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 2001 2000
Taxes and special assessments $8,411,513 $4,144,215 $1,205,378 $102,172 $13,863,278 $13,586,195
Licenses and permits 788,629 788,629 632,549
Intergovernmental 4,135,282 1,343.486 295,745 50,000 5,824,513 7,899,522
Charges for services 688,453 688,453 779,060
Court fines 230,408 230,408 180,676
Investment earnings 345,438 192.359 121,235 361,259 1,020.291 1,288,880
Change in fair value of investments 328,391 207,173 99,968 426,857 1,062.389 (490,651)
Miscellaneous 24,057 113,904 12,408 150,369 125,012
Total Revenues 14,952,171 6.001,137 1,722,326 952,696 23.628.330 24,001,243
Expenditures
Current:
General government 2.504,392 2,504,392 2,429.196
Public safety 5,660,600 11,498 5,672,098 5,453,143
Public works 2,142,064 2,142.064 2,100.865
Community services 106,034 106.034 95,148
Parks and recreation 2,205,018 187,150 2.392,168 2,344,768
Economic development 392,805 1.972,927 2.365,732 2,763,026
Non departmental 372,056 372,056 419.789
Administrative Services Reimbursement 0 (767,504) •
(767,504) (795,737)
pital outlay 1,188,882 5,369,295 6,558,177 7,275.675
Debt service:
Principal retirement 2,805,000 2.805,000 3,970,000
Interest and fiscal charges 173.024 1,158,554 7,515 1,339.093 1,295 938
Total Expenditures 12,615.465 3.533.481 3,963.554 5,376.810 25,489,310 27,351,813
Excess or Deficiency(-)of Revenues
Over Expenditures 2,336,706 2,467,656 (2,241,228) (4,424,114) (1,860.980) (3,350,570)
Other Financina Uses(-)or Sources
Proceeds from sale of bonds 730,000 730,000 735,000
Sale of fixed assets 572,266 572,266 194,491
Operating transfers in 166.807 2,977,133 980,244 4,124,184 5,479,120
Operating transfers out (1,661,877) (2.136.807) (3,798,684) (5.404,122)
Total Other Financing Uses(-)or Sources (1.661,877) (1,397,734) 2,977,133 1,710,244 1,627,766 1.004,489
Excess or Deficiency(-)of Revenues and Other
Sources Over Expenditures and Other Uses 674,829 1,069,922 735.905 (2,713,870) (233,214) (2.346,081)
Fund Balances January 1 7,452,043 2,794.425 4,736,609 8,901,362 23,884,439 26,230,520
Equity Transfers(Out)In (693,000) 693,000
Fund Balances December 31 67,433,872 53.864,347 $5,472,514 66,880,492 $23,651,225 $23,884,439
•
IV-6
City of Brooklyn Center
All Governmental Fund Types •
COMBINED STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
For the Year Ended December 31,2000
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 2000 1999
Taxes and special assessments 58,745,172 S3,556.588 $994,839 3289,596 S13,586,195 S12,361,125
Licenses and permits 632,549 632.549 763,960
Intergovernmental 4,076,169 2,239,000 291,245 1,293,108 7,899.522 8,602,166
Charges for services 779.060 779,060 739,054
Court fines 180,676 180.676 205,460
Investment earnings 378,481 252,888 141,277 516,234 1.288,880 1,187,494
Change in fair value of investments (153,454) (113.679) (49.494) (174,024) (490,651) (577,615)
Miscellaneous 9,713 105.299 10,000 125,012 168.050
Total Revenues 14,648,366 6,040,096 1,377,867 1.934,914 24,001,243 23,449,694
Expenditures
Current:
General government 2,421,762 7,434 2,429,196 2.260.415
Public safety 5,437,360 15,783 5,453,143 5,354.413
Public works 2,100,865 2,100,865 1,904,205
Community services 95,148 95,148 83.295
Parks and recreation 2,216,098 128.670 2,344.768 2,233.465
Economic development 397,507 2,365,521 2,763.028 2,564 904
Non departmental - 419,789 419,789 343.925
Administrative Services Reimbursement (795,737) (795,737) (670,390
Capital outlay 1,703,932 5,571,743 7,275,675 13,838,7�
Debt service:
Principal retirement 3,970,000 3.970,000 2.085.000
Interest and fiscal charges 1,295,938 1,295,938 1,387,544
Total Expenditures 12,292,792 4.221,340 5,265,938 5,571,743 27.351,813 31,485,478
Excess or Deficiency(-)of Revenues
Over Expenditures 2,355,574 1.818,756 (3.888,071) (3,636.829) (3,350,570) (8.035.784)
Other Financing Uses(-1 or Source_4
Proceeds from sale of bonds 735,000 735,000 1,585.000
Sale of fixed assets 194,491 194,491 2,411,987
Operating transfers in 401,884 4.508.039 569,197 5,479.120 3.655,433
Operating transfers out (1,532,238) (2,321,884) (1,550.000) (5.404.122) (3.704,790)
Total Other Financing Uses(-)or Sources (1,532.238) (1.725.509) 2.958.039 1.304,197 1,004,489 3.947,530
Excess or Deficiency(-)of Revenues and Other
Sources Over Expenditures and Other Uses 823,336 93,247 (930,032) (2.332.632) (2.346.081) (4.088,154)
•
Fund Balances January 1 7,308.707 2,701,178 5.666,641 10.553.994 26,230,520 30 318,574
Equity Transfers(Out)In (680,000) 680.000
Fund Balances December 31 57,452,043 52.794.425 54,736.609 38,901,362 523,884.439 525.230,520
•
IV-7
City of Brooklyn Center
111 COMBINED STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
General and Special Revenue Funds
For the Year Ended December 31,2002
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Taxes and special assessments $10,658,829 $11,257,003 $598,174 $3,415,444 $3,222,992 ($192,452)
Licenses and permits 565,485 823,996 258,511
Intergovernmental 2,769,840 2,843,629 73,789 242,294 487,780 245,486
Charges for services 605,267 575,748 (29,519)
Court fines 190,000 278,557 88,557
Investment earnings 350,000 211,198 (138,802) 50,000 190,496 140,496
Change in fair value of investments (5,858) (5,858) (4,963) (4,963)
Miscellaneous 34,305 106,963 72,658 68,000 134,306 66,306
Total Revenues 15,173,726 16,091,236 917,510 3,775,738 4,030,611 254,873
Expenditures
General government 2,441,150 2,553,426 112,276
Public safety
6,451,978 6,184,663 (267,315) 20,000 70,558 50.55E
Public works 2,076,714 1,986,692 (90,022)
Community services 103,419 103,491 72
•Parks and recreation 2,288,897 2,026,409 (262,488) 99,006 99,006
Economic development 342,000 340,659 (1,341) 237,067 1,754,886 1,517,819
Non-departmental 606,582 366.282 (240,300) 48,000
Admin.Services Reimbursement (782,684) (596,541) 186,143
Total Expenditures 13,528,056 12,965,081 (562,975) 305,067 1,924,450 1,667,383
Excess(Deficiency)of Revenues
Over Expenditures 1,645.670 3,126,155 1,480,485 3,470,671 2,106,161 (1.412.510)
Other Financinq(Uses)Sources
Sale of land 474,648 474,648
Operating transfers in 208,266 208.266
Operating transfers out (1,645,670) (1,863,910) (218,240) (2,760,217) (2,199,543) 560,674
Total Other Financing(Uses)Sources (1,645,670) - (1,863,910) (218,240) (2,760,217) (1,516,629) 1,243,588
Excess(Deficiency)of Revenues and Other
Sources Over Expenditures and Other Uses 1,262,245 1,262,245 710,454 589.532 (168,922)
Fund Balances January 1 7,433,872 7,433,872 3.864,347 3,864,347
Equity Transfer Out (766,343) (766,343)
Fund Balances December 31 $7,433,872 $7,929,774 $495,902 $4,574,801 $4,453,879 ($168.922)
•
IV-8
City of Brooklyn Center
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL •
General and Special Revenue Funds
For the Year Ended December 31,2001
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenues
Taxes and special assessments S8,558,675 58,411,513 ($147,162) $4,364,080 $4,144,215 ($219,865)
Licenses and permits 556,165 788,629 232,464
Intergovernmental 4,129,753 4,135,282 5,529 409,896 1,343,486 933,590
Charges for services 622,045 688,453 66,408
Court fines 185,000 230,408 45,408
Investment earnings 360,000 345,438 (14,562) 63,000 192,359 129,359
Change in fair value of investments 328,391 328,391 207,173 207,173
Miscellaneous 12,000 24,057 12,057 33,970 113,904 79,934
Total Revenues 14.423,638 14,952,171 528,533 4,870.946 6,001,137 1,130,191
Expenditures I
General government 2,443,879 2,504,392 60,513
Public safety 5.769,431 5,660,600 (108,831) 24,970 90,096 65,126
Public works 2,083,822 2,142,064 58,242
Community services 106,035 106,034 (1)
Parks and recreation 2,267,089 2,205,018 (62.071) 150,000 187,413 37,44
Economic development 342,000 392,805 50.805 1,018,116 3,255,972 2,237,8
Non-departmental 480,517 372,056 (108,461)
Admin.Services Reimbursement (770.707) (767,504) 3,203
Total Expenditures 12,722,066 12,615,465 (106,601) 1,193.086 3,533,481 2,340,395
Excess or Deficiency(-)of Revenues
Over Expenditures 1,701,572 2.336,706 635,134 3,677.860 2,467,656 (1.210,204)
Other Financing Uses(-)or Sources
Sale of fixed assets 572,266 572.266
Operating transfers in 410,086 166,807 (243,279)
Operating transfers out (1,701,572) (1,661,877) 39,695 (2,380,086) (2.136,807) 243,279
Total Other Financing Uses(-)or Sources (1,701,572) (1,661,877) 39,695 (1,970,000) (1,397,734) 572,266
Excess or Deficiency(-)of Revenues and Other
Sources Over Expenditures and Other Uses 674,829 674,829 1,707,860 1.069,922 (637,938)
Fund Balances January 1 7,452,043 7,452,043 2,794,425 2,794,425
Equity Transfer Out (693.000) (693.000)
Fund Balances December 31 $7,452,043 $7,433,872 ($18,171) S4.502,285 $3,864,347 (5637,938)
III
IV-9
•
City of Brooklyn Center
General and Special Revenue Funds
COMBINED STATEMENT OF REVENUES,EXPENDITURES,
AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
For the Year Ended December 31,2000
General Fund Special Revenue Funds
Actual Over Actual Over
Under(-) Under(-)
Budget Actual Budget Budget Actual Budget
Revenue$
Taxes and special assessments 68,134,653 S8,745.172 $610,519 $3,582,012 $3,556.588 (625.424)
Licenses and permits 512,050 632.549 120,499
Intergovernmental 4.067.577 4,076,169 8.592 2248.417 2,239,000 (9,417)
Charges for services 779,750 779,060 (690)
Court fines 200,000 180,676 (19,324)
Investment earnings 324,000 378,481 54.481 70.000 252,888 182,888
Change in fair value of investments (153,454) (153.454) (113,679) (113.679)
Miscellaneous 12,000 9.713 (2,287) 87,000 105,299 18,299
Total Revenues 14,030,030 14.648,366 618,336 5,987,429 6,040,096 52,667
•
,,xoenditures
General government 2,402,331 2,421,762 19.431 7,434 7.434
Public safety 5.655,628 5.437,360 (218,268) 100,000 83,224 (16.776)
is works 2,047,036 2,100,865 53,829
imunity services 95,030 95.148 118
Parks and recreation 2,314.041 2,216,098 (97,943) 150,000 128,670 (21.330)
Economic development 308,750 397.507 88,757 4,153,241 4,002,012 (151,229)
Non-departmental 478,843 419.789 (59.054)
Admin.Services Reimbursement (749,233) (795,737) (46.504)
Total Expenditures 12.552.426 12.292,792 (259.634) 4,403.241 4,221,340 (181,901)
Excess or Deficiency(-)of Revenues
Over Expenditures 1,477,604 2.355.574 877,970 - 1,584.188 1.818,756 234,568
Other Financing Uses(-1 or Sources
Sale of fixed assets 194,491 194.491
Operating transfers in 405,474 401.884 (3,590)
Operating transfers out (1,477,604) (1,532,238) (54,634) (2,325,474) (2,321,884) 3,590
Total Other Financing Uses(-)or Sources (1,477,604) (1,532,238) (54.634) (1,920,000) (1,725,509) 194,491
Excess or Deficiency(-)of Revenues and Other •
Sources Over Expenditures and Other Uses ' 823,336 823.336 (335,812) 93,247 429.059
Fund Balances January 1 7,308,707 7,308,707 2,701,178 2,701,178
Equity Transfer Out (680,000) (680,000)
Fund Balances December 31 67,308,707 S7,452,043 S143,336 $2,365,366 $2,794,425 $429.059
III
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