HomeMy WebLinkAbout2005 05-16 CCP Joint Work Session with Financial Commission AGENDA
CITY COUNCIL FINANCIAL COMMISSION JOINT WORK SESSION
May 16, 2005
6:30 P.M.
Council Commission Conference Room
1. Presentation by Auditor of 2004 Audit and Comprehensive Annual Financial Report
2. Review of Previous Budget Prioritization
3. Review of 2006 Budget Dates:
a. August 15
b. September 12 Preliminary General Fund Levy Budget Adoption
c. October 3' Enterprise Funds
d. November 21 st
e. December 5 th Truth in Taxation hearing
f. December 12 Budget Adoption
4. Overview of 2006 Issues
a. Additional Loss of Local Government Aid
b. Revenues
i. Real Estate Tax Levy for Operations
ii. 1995 Street Bond levy
c. Expenditures
i. Personnel
1. Wages benefits
2. PERA increases
3. Dispatch
ii. Utilities
5. Prioritization/Focus for 2006 Budget Development
6. Adjourn
City of Brooklyn Center
A Millennium Community
To: Mayor and Council Members
Financial Commission
From: Michael J. McCauley
City Manager
Date: May 10, 2005
Re: Joint Work Session
AGENDA ITEM 1. AUDIT
The first part of the joint meeting will be a review of the DRAFT 2004 audit report by the City's
audit firm, Tautges Redpath. The final audit report and Comprehensive Annual Financial Report will
be made in June at a regular City Council meeting.
2006 BUDGET DISCUSSION
In May, the City Council and Financial Commission are asked to provide general direction on the
development of the draft General Fund budget documents. The draft budget is developed to address
priorities that have been developed. A general sense of the goals for the 2006 budget and the rough
parameters of revenue capacity are needed to give departments direction on the development of
budget requests. If the City Council has general or specific matters that it wants reviewed and
analyzed for the budget, identification of those issues at the beginning of the budet development
process aids in that process and allows staff time to develop appropriate scenarios for Council and
Commission review.
As indicated in the agenda, the meeting will review the general directions taken last year. The 2005
budget was essentially a continuation of the reduction strategies employed in 2004 2003. The
underlying principle guiding the reduction in service was to eliminate whole activities and to reduce
core operations at the margins so as to retain effective core services, rather than to cut all
services /activities across the board. A sense of doing what is done at an effective level was seen as
more beneficial /effective than doing more things poorly.
AGENDA ITEM 2. REVIEW OF PREVIOUS BUDGET PRIORITIZATION
2005 REVENUE OVERVIEW
For 2005, the General Fund budget increased $408,820, following a 2004 decrease of $777,519 in
operations.
6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number
Brooklyn Center, MN 55430 -2199 (763) 569 -3400
City Hall TDD Number (763) 569 -3300 FAX (763) 569 -3434
FAX (763) 569 -3494
www.cityofbrooklyncenter.org
General Fund Revenues
2005
Real Estate Taxes
73.4%
Interest
1.1%
Court Fines
1.7%
Rec. Comm. Center Fees
4.6%
Charge for Service
0.2%
State Aids
L 7.9%
Public Safety Charges Licenses Permits
0.1% 5.1
Misc. Taxes Misc. Revenue
4.8% 1.1%
2005 EXPENDITURE OVERVIEW
The budget continued the reductions implemented in 2004 after a lengthy prioritization process.
The continuation of the 2004 cuts and priorities reflected in the 2005 budget were:
The budget for all operations provides for 150 full time positions in all funds,
a decrease of 6 positions from the 2003 budget. Three full time positions
were eliminated in the 2003 budget. The mix of full time and part -time
employees is an ongoing process of balancing needs and the best mechanisms
to meet those needs through personnel configurations. In 2005, one street
position is shifted from the General Fund to the Stormwater Fund to reflect
the costs of street sweeping that relate to improving storm water quality.
Maintains Police Patrol at full strength
Maintains Fire Operations
Maintains general operations as reduced in 2004
Continues reductions is:
Street and Park maintenance
Reduced seasonal hiring
Not replacing positions vacated in 2003
05/11/2005 Page 2 of 5
Reduced use of portable toliets
o Retains
Senior Transportation
Staffing for Earle Brown Days committee
Support for Earle Brown Days parade
Funding for REACH added to the 2005 budget
o Provides no funding for:
PRISM medical transportation funding in the 2004 budget (service
may be continued in 2004 through an additional transfer in 2003)
North Hennepin Mediation Services
DARE
o Reduced levels in the following areas are continued:
Pool hours
Programming for
Seniors
Youth after school
Lks
Recreation programs
Ice
Reduced to 5 rinks
Eliminates warming houses altogether
City Watch newsletters from 6 to 4 issues annually
Entertainment in the parks and fireworks are held to the extent
donations are received
Agenda Item 3. Review of 2006 Budget Dates:
The budget meeting dates were established with the 2005 City Council calendar adoption. We have
generally started with the General Fund and done the Enterprise and Capital Funds at the end of the
process. State law requires adoption of a preliminary tax levy by the 2 week of September. (There
is a legislative proposal to accelerate that date to the 1 St week of September.) The final levy adopted
in December may be lower than the preliminary levy adopted in September. The final levy may not
be higher than the preliminary levy. The preliminary levy is sent out with the Truth in Taxation
notices. With the exception of the September 12 December 5 and December 12 meetings, all
meetings are joint work sessions of the City Council and Financial Commission at 6:30 p.m. If there
are any changes that should be made to the schedule, they can be proposed at any point in the budget
process.
Agenda Item 4. Overview of 2006 Issues
a. The most significant influence on the General Fund continues to be the reduction in
Local Government Aid. After losing $1.68 Million in Local Government Aid in 2004
05/11/2005 Page 3 of 5
with the ability to levy back only 60% of that lost aid and no levy for inflation, the
City lost an additional $310,422 in Local Government Aid in 2005. Based on joint
meetings with the Financial Commission, the City Council adopted a levy that levied
a 3.10% increase for operations and levied back the amount of aid that was lost in
2005. The estimated Local Government Aid for 2006 will not be provided by the
State until mid summer. At this point, we have no information on additional cuts to
Brooklyn Center and anticipate no increase in State assistance.
b. Revenues
i. Real estate taxes are the largest source of revenue in the General Fund (73
and the only significant source of new revenue to meet future cost increases.
Many of our license fees are limited by State statute such as liquor licenses
and amusement devices. Building permit revenues are cyclical and may need
to be adjusted downward in the budget projections. We have increased fees
at the Community Center and for programs. Interest earnings have been very
modest over the past years due to low interest rates. The reduction in the
General Fund balance will impact interest earnings.
ii. A 3% increase in real estate taxes generates approximately 300,000 or a 2.3%
increase in General Fund revenues.
iii. In 2005, the 1995 Street bonds will be retired. This is the 2 last issue that
included a levy for the City's portion of street reconstruction prior to the City
Council's acceptance of the recommendation to discontinue the use of
general obligation debt. The debt service levy in 2005 for the 1995 bonds is
$73,000. The levy for operations could increase by $73,000 without itself
increasing total taxes. Conversely, if the $73,000 was not added to General
Fund operations, it would reduce the overall levy by $73,000.
c. Expenditures
i. Personnel
1. For 2006 we are projecting the cost for increased wages and insurance
contributions at roughly $295,000 in the General Fund.
2. Unknown is whether the Legislature will increase employee and
employer contributions to PERA (Public Employee Retirement
Association). The increases being proposed for employers are:
a. From 5.57 of salary to 7 of salary for the coordinated
plan. The cost would be approximately $78,000. Current
discussion would phase this in over 4 years.
b. From 9.3% of salary to 13.5% of salary for Police Fire
PERA. The cost would be approximately $120,000. Current
proposals would impose the total increase in one year, without
05/11/2005 Page 4 of 5
a phase in.
3. Shifting dispatch to Hennepin County will result in over $100,000 in
savings in 2006. The greater impact will occur in the 2007 budget.
ii. Utilities and fuel
1. Utilities and fuel costs have increased due to increased energy costs.
a. Utilities and fuel costs were $58,000 over budget in 2004 and
costs are higher in 2005.
Agenda Item 5. Prioritization and Focus for 2006 Budget Development
As indicated above, this meeting in May is to provide direction for developing the Draft General
Fund budget so that City Council and Financial Commission priorities or issues can be addressed
in the Draft document.
Priorities
1. Maintain those developed previously?
2. Different priorities?
b. Programs
c. Other
05/11/2005 Page 5 of 5
2000 -2005
General Government'`
Public Safety
Community Development
Public Works
Social Services 2000
Parks Recreation 2005
Convention Tourism
Risk Management
Unallocated Dept.
Transfers to Technology F
$0 $1 $2 $3 $4 $5 $6 $7
Millions
Expenditures
General Government
Public Safety
Nmr
Police Fire Bonds
Community Development
Public Works
Social Services
i
Parks Recreation
Convention Tourism
Risk Management 1997
1998
Unallocated Dept 0 1999
E 2000
Reimbursement from Other Funds 2001
2002
2003
Transfers to Capital Projects 2004
2005
Transfers to Debt Service
-2 1 0 1 2 3 4 5 6 7
Millions
Groupings 2003 2004 200
'Mayor City Council $134 $128 $129
City Manager $205,689 $185 $191,504
City Clerk $164,505 $168 $171,414
Finance $675,467 $704,193 $708
'Legal $25000 $250,000 $265,000
Human Resources $225 $223,245 $220
Other Gen. Gov't. $1 $1 $1
Police $5,452 $5,331 $5 7 636 1 664
Fire $707 $692 $721
Inspections $293 $326 $341
Emergency Prep. $61,706 $63 $64,295
Public Works Admin. $575 $456,764 $495
Maintenance Streets $1 $1 $1
'Social Services $93 $73 $79,790
CARS Administration $154 $150 $159,214
Recreation Admin $1 $1,028 $1
Maintenance Parks $1 $865 $866
Convention Tourism $339 $330 $304
Unallocated ($276,868) ($370,280) ($362,547)
Other Financing $1,648,494 $2500 $70
$15 $12,982,258 $1353911,078
Operating, Debt HRA Levies State Aids
2002
2003 ■Operating Levy
State Aids
HRA Levy
2004 F7 Debt Service Levy
2005
$0 $5 $10 $15
Millions
General Fund Expenditures by Type
2005
Personnel Costs
68.6%
i
Capital Outlay
0.4%
Transfers to Other Funds
0.5%
Contingency
0.3%
Utilities
3.2%
Insurance
1.2%
Central Garage
1 6.6%
Cost of Sales
0.1%
Other Contractual
8.8%
Supplies
3.5% Repair. rental
Services 2.1%
2.8% J Communications
1.8%
General Fund 2005
City Manager
Mayor Council 1.4%
0.9% City Clerk
Convention Tourism i' 1.3%
2.2% Finance
Park Maint. 5.2%
6.3% Legal
r 1.9%
Human Res.
Recreation Admin' 1.6 °!0
7.7%
CARS Admin.
1.2% a` Other Gen. Gov't.
Social Services 7.8%
0.6%
i
Maintenance Streets
8.9
I
Public Works Admin.
3.6%
Emergency Prep.
0.5%
Inspections
2.5%
Fire
5.3%
Police
41.2%
Memorandum
Date: 13 May 2005
To: Michael McCauley
City Manager
From: Daniel Jordet
Director of Fiscal Support Service
Re: Draft of Financial Statements for A
Presented with this memorandum is a draft copy of the financial statements for
the fiscal year ended 31 December 2004. These statements, along with a
transmittal letter, a Management Discussion Analysis section and a collection
of statistical data tables, make up the Comprehensive Annual Financial Report or
CAFR. The CAFR will be presented for consideration by the City Council at the
first regular meeting in June of this year.
A draft copy of the financial statements is being presented along with a draft
copy of the audit management letter, in order to give policymakers an
orientation to the financial condition of the City prior to the start of the 2006
budget process. With the major changes in funding sources that have affected
City budgets the past three fiscal years, it is imperative that we convey the best
possible understanding of our financial condition while preparing to set the
priorities for the 2006 fiscal year. While losses of Local Government Aid (LGA)
and calls for property tax relief have reduced the revenues available for general
operations,' the expectations for service and responsiveness from our
organization have continued to grow. This makes it very important that we
understand the resources available to us as we begin to set priorities for 2006
and future years.
HLB Tautges Redpath, our audit firm for the past three years, will be present at
Monday evening's meeting to review the information contained in the financial
statements and assist us in responding to questions for the City Council and
Financial Commission.
'Revenues available for General Fund Operations
2002 16,091,236
2003 15,408,271
2004 13,235,729
2005 13,391,078
Source: Comprehensive Annual Financial Reports 2002, 2003, 2004 and Budget 2005 for the City
of Brooklyn Center.
CITY OF BROOKLYN CENTER, MINNESOTA
AUDIT MANAGEMENT LETTER
December 31, 2004
1
1
jig
To the Honorable Mayor and
Members of the City Council
City of Brooklyn Center, Minnesota
We have completed the 2004 audit of the City of Brooklyn Center and have issued our
report thereon. Our Independent Auditor's Report is included in the City's Comprehensive
Annual Financial Report. This Audit Management Letter provides a summary of audit
results along with comparisons and trend analysis of financial data.
Thank you for the opportunity to serve the City. We are available to discuss this report
with you.
May 10, 2005
HLB TAUTGES REDPATH, LTD.
Certified Public Accountants
City of Brooklyn
Minnesota
Audit Management Letter
Report Summary
REPORT SUMMARY
Several reports are issued in conjunction with the audit. A brief summary is as follows:
Report Name Elements of Report Overview
Required Reports
Comprehensive Annual Financial Financial statements Report not yet issued
Report (CAFR) Footnotes
Sunolemental information
Report on Compliance and a Internal controls over financial One reportable condition in
Internal Control reporting internal control
Compliance with laws, No findings of
regulations, contracts and noncompliance with laws,
grants regulations, contracts and
grants
State Legal Compliance Report Results of testing certain No findings of
provisions of Minnesota noncompliance
Statutes
City of
Minnesota
Audit Management Letter
Financial Statement Analysis
FINANCIAL STATEMENT ANALYSIS
The basic financial statements of the City of Brooklyn Center are presented in
Statements 1 through 8 of the 2004 Comprehensive Annual Financial Report.
Summary of Financial Activitv
A summary of financial activity for 2004 is as follows:
Increase Fund Balance
(decrease) in (Deficit)
Transfers Fund Balance/ Net Assets
Fund Revenue Expenditures (Net) Net Assets 12/31/04
General $13,235,729 $12,817,896 ($1,465,464) ($1,047,631) $6,969,449
Special Revenue:
Housing and Redevelopment Authority 223,523 (223,523)
Economic Development Authority 331,980 556,140 223,523 (637) 1,488,129
Earle Brown TIF District 733,526 30,653 (876,000) (173,127) (1,858,494)
TIF District No. 3 20,180,827 428,445 19,752,382 25,871,672
TIF District No. 4 228,060 246,644 (18,584) 88,181
Police Drug Forfeiture 27,492 76,952 (49,460) 24,708
CDBG
City Initiatives Grant 375,476 346,893 28,583 135,981
Debt Service:
General Obligation 777,446 735,497 41,949 949,658
Tax Increment 6,025 2,014,132 876,000 (1,132,107) 304,588
Special Assessment 1,161,890 1,231,691 (69,801) 5,907,073
Capital Projects:
Capital Reserve Emergency 9,688 9,688 1,346,261
Capital Improvements 238,446 494,693 300,000 43,753 1,801,483
Municipal State Aid for Construction 701,608 (533,816) 167,792 598,373
Infrastructure Construction 1,841,371 3,901,906 2,588,626 528,091 757,270
Earle Brown Heritage Center Improvements 2,741 89,456 200,000 113,285 121,448
Street Reconstruction 621,536 620,464 1,242,000 1,525,891
Technology 27,868 56,444 295,000 266,424 541,424
Enterprise:
Municipal Liquor 4,039,536 3,974,865 (125,000) (60,329) 1,158,223
Golf Course 289,360 271,127 18,233 967,545
Earle Brown Heritage Center 3,623,563 4,070,159 (200,000) (646,596) 8,986,203
Recycling and Refuse 215,328 222,821 (7,493) 86,444
Street Light Utility 210,095 165,651 (51,000) (6,556) 116,788
Water Utility 1,616,086 1,533,924 (631,440) (549,278) 9,968,383
Sanitary Sewer 2,931,056 2,310,645 (555,614) 64,797 10,465,062
Storm Drainage 1,297,990 765,647 (441,756) 90,587 11,543,662
Internal Service:
Central Garage 1,197,190 1,168,066 29,124 6,804,861
Retirement 23,646 58,465 (34,819) (17,679)
Compensated Absences 86,472 74,078 12,394 24,585
Total $56,255,554 $37,642,890 $0 $18,612,664 $96,677,172
2 �jj 11
City of
Minnesota
Audit Management Letter
Financial Statement Analysis
Property Taxes
The City has consistently experienced a solid collection rate for property taxes. A
summary of the tax levy, tax rate and collection rate for the last eight years is as follows:
Tax Tax Unpaid
Tax Collection Capacity Taxes as of
Year Levy Rate Rate 12/31/2004
1996 $6,495,206 97.9% 30.344
1997 6,746,487 98.2% 32.875
1998 7,687,124 99.4% 35.214 27,760
1999 7,896,858 99.0% 36.269 1,451
2000 8,100,334 99.3% 34.645 1,133
2001 8,199,094 96.4% 35.996 10,170
2002 10,442,170 98.0% 57.704 36,721
2003 10,355,287 97.0% 52.792 21,737
2004 10,778,957 95.4% 52.437 481,168
Total $580,140
The tax levy increase for 2002 relates to the elimination of HACA (the City received
$1,380,000 in 2001). The delinquent taxes receivable for 2004 consist primarily of
It is our understanding these taxes have been remitted to the
County in 2005.
A.
City of Brooklyn
Minnesota
Audit Management Letter
Financial Statement Analysis
Tax Increments
A summary of tax increment activity is as follows:
2004 Activity
Delinquent Less Delinquent
TIF Receivable 2004 OSA 2004 Receivable
District Name 12/31/2003 Levy TIF Fee Collections Adjustments 12/31/2004
1 Brookwood Housing $2,879 $191,511 ($664) ($184,038) ($8,537) $1,151
2 Earle Brown Farm 112,971 549,394 (1,956) (541,506) (22,555) 96,348
3 TIF #3 Redevelopment 172,625 3,569,557 (10,407) (2,880,505) (208,182) 643,088
4 France Avenue Business Park 228,753 (823) (227,930)
Total $288,475 $4,539,215 ($13,850) ($3,833,979) ($239,274) $740,587
The delinquent taxes receivable for TIF No. 3 consist primarily of
It is our understanding these taxes have been remitted to the County in 2005.
J1' jl
City of
Minnesota
Audit Management Letter
Financial Statement Analysis
Snecial Assessments
The City has experienced a solid collection rate for special assessments. A summary of
the collection rate for the last nine years is as follows:
Special Assessment
Collection Rate
Collection
Year Rate (1)
1996 94.7%
1997 95.4%
1998 96.9%
1999 95.4%
2000 95.7%
2001 90.7%
2002 93.1%
2003 95.4%
2004 95.2%
(1) Current collections as a percent of
current levy.
tO ;)J'1
City of Brooklyn
Minnesota
Audit Management Letter
Financial Statement Analysis
Interfund Pavables /Receivables
The City had the following interfund advances at December 31, 2004:
Fund Receivable Payable
General Fund $105,074
MSA Construction Fund 593,069
Tax Increment No. 3 Fund 1,200,000
Earle Brown TIF Fund 1,898,143
Capital Improvements Fund 850,000
Golf Course Fund 850,000
Total $2,748,143 $2,748,143
The interfund loan to the Earle Brown TIF Fund has existed since 1987. During 2004,
the City established a formal repayment plan by the adoption of resolution 2004 -91.
The interfund loan to the golf course was established in 1998. The loan is interest fee
and has annual payments of $55,000 to $65,000 through 2017. For 2004 the amount paid
down on the loan was $35,000.
City of
Minnes
Audit Management Letter
General Fund
GENERAL FUND
The General Fund of the City accounts for current operating expenditures common to
all cities. These basic services include (but are not limited to) public safety, public works,
parks and recreation, community services and general government.
For the City of Brooklyn Center, the General Fund is financed by three major sources:
1) taxes; 2) intergovernmental; and, 3) charges for services.
A graph of the major revenue sources is as follows:
$12,000,000
$11,000,000
$10,000,000 3
$9,000,000 L
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000 u "s'
$1,000,000
$0 I 2000 1 2001 2002 1 2003 2004
—Intergovem ental $4,076,169 $4,135,282 $2,843,629 I $1,948,457 $1,419,210
—Taxes $8,745,172 $8,411,513 $11,257,003 I $10,799,074 $10,025,495
—0— All Other $1,827,025 I $2,405,376 $1,990,604 $2,155,379 $1,791,024
j v
JJJ t�.
City of Brooklyn
Minnesota
Audit Management Letter
General Fund
The fund balance of the General Fund decreased by $1,047,631 in 2004 as follows:
Budget Actual Variance
Revenue $12,982,258 $13,235,729 $253,471
Expenditures 13,741,342 13,601,980 139,362
Increase (decrease) before other financing sources (759,084) (366,251) 392,833
Other financing sources (uses):
Administrative services reimbursed 784,084 784,084
Transfers to other funds (25,000) (25,000)
Total other financing sources (uses) 759,084 759,084 0
Increase in General Fund balance before equity transfer $0 392,833 $392,833
Equity transfer out (1,440,464)
Net increase (decrease) in fund balance ($1,047,631)
City of klyn Center,
Minneso
Audit Management Letter
General Fund
The City's December 31, 2004 fund balance was $6,969,449. The City's General Fund
balance has been as follows for the past six years:
$9,000,000
General Fund Balance
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2000 2001 2002 2003 2004
City of
Minnesota
Audit Management Letter
General Fund
A summary of General Fund balance for the past three years is as follows:
General Fund Balance
Component 12/31/2002 12/31/2003 12/31/2004
Reserved for advances to other funds $105,074 $105,074 $105,074
Designated for working capital 6,527,973 6,031,077 6,862,871
Subtotal 6,633,047 6,136,151 6,967,945
Reserved for prepaids 68,279 5,309 1,504
Undesignated 1,228,448 1,875,620
Total $7,929,774 $8,017,080 $6,969,449
Working Cauital Reserve
The City adopted an "adequate fund balance policy formula" in 1980. This policy
defines the minimum fund balance elements. This policy was amended in 2004. A
calculation of working capital reserve is as follows:
2002 2003. 2004*
1. Items not readily convertible to cash:
a. Accounts receivable $53,489 $57,908
b. Advances to other funds 105,074 105,074
c. Restricted assets 131,153
2. Amount appropriated to the ensuing
year's budget
3. Amounts reserved to working capital:
(45% of current year budget less debt service) 6,474,484 5,842,016
(50 -52% of ensuing year's budget) 6,862,671
$6,633,047 $6,136,151 $6,862,671
*The amout of fund balance available at December 31, 2004 is 51 of the 2005 budget.
City of
Minnesota
Audit Management Letter
Special Revenue Funds
SPECIAL REVENUE FUNDS
Special Revenue Funds are a classification of funds to account for activities segregated
by City policy, Federal or State statutes for specific purposes. The City maintained eight
Special Revenue Funds during 2004.
1 Housing and Redevelopment Authoritv Fund (202)
The HRA has authority to levy an ad valorem property tax for housing and
redevelopment purposes. The HRA Fund accounts for property tax levies. A summary of
financial activity is as follows:
Housing and Redevelopment Authority
2002 2003 2004
Revenue and other sources:
Property taxes $194,766 $207,854 $223,523
Expenditures and other uses:
Transfer to EDA 194,766 207,854 223,523
Increase in fund balance 0 0 0
Fund balance January 1
Fund balance December 31 $0 $0 $0
1 Pursuant to MS 469.033, the HRA's le limit is an amount equal to 0.0144% of
levy q
taxable market value.
City of Brooklyn
Minnesota
Audit Management Letter
Special Revenue Funds
Economic Development Authoritv Fund (203)
The EDA Fund accounts for the financial activity of the EDA. In addition to this fund,
the Earle Brown Heritage Center Fund accounts for the EDA operations of the Center. A
summary of financial activity is as follows:
Economic Development Authority t
2002 2003 2004
Revenue and other sources:
Property taxes $5,974 $36
Intergovernmental 53,623 188,495 54,273
Investment earnings 29,440 20,276 19,721
Reimbursements 257,986
Other 49,000 89,002
Sale of capital assets 474,648 73,175
Transfer from CDBG 13,500
Transfer from HRA 194,766 207,854 223,523
Total revenue and other sources 820,951 578,838 555,503
Expenditures and other uses:
Personal services 176,508 124,580 118,632
Supplies 579 2,962 475
Services and other charges 154,052 235,876 143,888
Purchase of land 293,145
Total expenditures and other uses 331,139 363,418 556,140
Increase (decrease) in fund balance 489,812 215,420 (637)
Fund balance January 1 783,534 1,273,346 1,488,766
Fund balance December 31 $1,273,346 $1,488,766 $1,488,129
City of
Minnesota
Audit Management Letter
Special Revenue Funds
TIF District No. 2 Earle Brown Farm TIF Fund (277)
The Earle Brown Farm TIF Fund accounts for TIF No. 1 (Brookwood Housing) and
TIF No. 2 (Earle Brown Farm). A summary of financial activity is as follows:
Earle Brown TIF
2002 2003 2004
Revenue and other sources:
Tax increment $815,568 $833,553 $725,544
Investment earnings 4,503 7,982
Total revenue and other sources 815,568 838,056 733,526
Expenditures and other uses:
Personal services 4,210 18,235 22,170
Interest 11,516 26,420
Services and other charges 2,050 11,314 8,483
Transfer to Tax Increment Bonds Debt Service 1,410,000 653,000 876,000
Total expenditures and other uses 1,427,776 708,969 906,653
Increase (decrease) in fund balance (612,208) 129,087 (173,127)
Fund balance (deficit) January 1 (1,202,247) (1,814,455) (1,685,368)
Fund balance (deficit) December 31 ($1,814,455) ($1,685,368) ($1,858,495)
1
i
City of Brooklyn
Minnesota
Audit Management Letter
Special Revenue Funds
The fund deficit is financed by loans from the following funds:
$105,074 General Fund
593,069 MSA Construction
1,200,000 TIF No. 3
$1,898,143 Total
It is anticipated by management that future tax increment collections will be sufficient
to repay the interfund loans.
Obligations of this district decreased by $1,425,000 in 2004 as shown below:
i
Balance Balance
Bond Issue at 12/31/03 at 12/31/04
Tax Increment Bonds of 1991 $1,425,000
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r City of Center,
Minnesota
Audit Management Letter
Special Revenue Funds
i TIF District No. 3 Fund (278)
A summary of financial activity is as follows:
TIF No. 3
2002 2003 2004
Revenue and other sources:
Tax increment $2,067,009 $2,308,605 $2,880,586
Investment earnings 150,386 81,399 127,140
Bonds issued 17,245,000
Total revenue and other sources 2,217,395 2,390,004 20,252,726
Expenditures and other uses:
Personal services 8,945 28,010 36,001
Interest 95,881 20,000
Services and other charges 768,293 531,549 392,444
Transfer to Tax Increment Bonds Debt Service 570,000 548,000
Total expenditures and other uses 1,443,119 1,127,559 428,445
Increase in fund balance 774,276 1,262,445 19,824,281
Fund balance January 1 4,082,569 4,856,845 6,119,290
Fund balance December 31 $4,856,845 $6,119,290 $25,943,571
y
City of
Minnesota
Audit Management Letter
Special Revenue Funds
Services and other charges for 2004 include the following:
$391,287 Professional services
1,157 Other
$392,444 Total
The obligations of this TIF District are shown below:
Balance Balance
Bond/Note 12/31/03 12/31/04
Taxable Tax Increment Bonds of 1995 $3,080,000 $2,730,000
Taxable Tax Increment Bonds of 2004D 17,245,000
Total $3,080,000 $19,975,000
The 2004 Bonds were issued to finance the acquisition and clearance of a
redevelopment site within TIF No. 3.
City of Brooklyn
Minnesota
Audit Management Letter
Special Revenue Funds
TIF District No. 4 Fund (279)
A summary of financial activity is as follows:
TIF No. 4
2002 2003 2004
Revenue and other sources:
Tax increment $139,675 $246,968 $227,930
Investment earnings 1,232 130
Total revenue and other sources 140,907 246,968 228,060
Expenditures and other uses:
Personal services 4,016 3,118 387
Services and other charges 183,923 202,307 246,257
Total expenditures and other uses 187,939 205,425 246,644
Increase (decrease) in fund balance (47,032) 41,543 (18,584)
Fund balance (deficit) January 1 112,254 65,222 106,765
Fund balance (deficit) December 31 $65,222 $106,765 $88,181
Services and other charges for 2004 consist primarily of Twin Lakes Business Park TIF
Note repayment. The obligations of this TIF District include the following:
Balance
12/31/04
Twin Lake Business Park TIF Note $2,350,726
The TIF note is a limited obligation and repayment and is based solely on tax
increments received. The City has pledged 97.5% of tax increments collected to the payment
of the note. Interest on the note is at 8
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City of Brooklyn
Minnesota
Audit Management Letter
Special Revenue Funds
Police Drue Forfeiture Fund (205)
The Police Drug Forfeiture Fund accounts for property and/or cash seized by the police
department. A summary of financial activity is as follows:
Police and Drug Forfeiture
2002 2003 2004
Revenue and other sources:
Investment earnings $2,186 $1,106 $1,022
Forfeiture revenue 27,587 27,571 26,470
Total revenue and other sources 29,773 28,677 27,492
Expenditures and other uses:
Supplies 7,936 2,009 21,578
Services and other charges 11,370 55,374
Total expenditures and other uses 7,936 13,379 76,952
Increase (decrease) in fund balance 21,837 15,298 (49,460)
Fund balance January 1 37,033 58,870 74,168
Fund balance December 31 $58,870 $74,168 $24,708
City of Brooklyn
Minnesota
Audit Management Letter
Special Revenue Funds
Community Development Block Grant Fund (204)
A summary of financial activity is as follows:
Community Development Block Grant Fund
2002 2003 2004
Revenue and other sources:
CDBG $352,000 $201,000
Expenditures and other uses:
Shingle Creek tower project 325,000 175,000
Transfer to EDA (CEAP) 13,500
CEAP 13,500 26,000
Total expenditures and other uses 352,000 201,000 0
Increase in fund balance $0 $0 $0
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City of
Minnesota
Audit Management Letter
Special Revenue Funds
Citv Initiatives Grant Fund (286)
The City Initiatives Grant Fund accounts for donations received from outside parties.
A summary of financial activity is as follows:
i
City Initiatives Grant
2002 2003 2004
Revenue and other sources:
Intergovernmental $82,157 $370,800 $288,828
Investment earnings 2,289 2,532 3,469
Other 57,719 109,006 83,179
Total revenue and other sources 142,165 482,338 375,476
Expenditures and other uses:
Personal services 6,219 52,347 108,268
Supplies 24,946 212,808 190,849
Services and other charges 136,845 123,836 47,776
Interest 31
Transfer to Capital Improvements Fund 11,277
Total expenditures and other uses 179,318 388,991 346,893
Increase (decrease) in fund balance (37,153) 93,347 28,583
Fund balance January 1 51,204 14,051 107,398
Fund balance December 31 $14,051 $107,398 $135,981 i
City of Br oo klyn
Minnes
Audit Management Letter
Debt Service Funds
DEBT SERVICE FUNDS
Debt Service Funds are a type of governmental fund to account for the accumulation of
resources for the payment of interest and principal on debt (other than Enterprise Fund debt).
Current governmental reportin g standards do not provide for the matching of long -term
1 debt with its related financing sources. Although this information can be found in the City's
CAFR, it is located in several separate sections of the CAFR. The following schedule
extracts information from sections of the 2004 Comprehensive Annual Financial Report to
provide an overview analysis of long -term debt and its related funding.
i
Assets Pledeed for Debt Retirement 12/31/2004 Scheduled Final
Fund Deferred Outstanding Property Maturity
Fund Descrintion Balance Revenue"' Totals Princinal Taxes Date
Tax Increment Debt:
Tax Increment Bonds of 1991 (TIF 2)(376) $273 $273 D 02/01/04
Refunding Tax Increment Bonds of 1992 (TIF 2) 361,094 361,094 0 02/01/03
Taxable Tax Increment Bonds of 1995 (TIF 3)(378) 37,221 37,221 2,730,000 (1) 02/01/05
Tax Increment Refunding Bonds of 2004B (TIF 3)(379) 2,470,000 (l) 02/01/11
Taxable Tax Increment Bonds of 2004D (TIF 3)(380) 17,245,000 f 1 02/01/20
Total tax increment debt 398,588 0 398,588 22,445,000 0
Special Assessment Debt:
Improvement Bonds of 1994 (30 1) 153,000 9,680 162,680 95,000 02/01/05
Improvement Bonds of 1995 (302) 99,232 19,464 118,696 175,000 73,626 02/01/06
Improvement Bonds of 1996 (303) 462,642 100,588 563,230 470,000 236,853 02/01/07
Improvement Bonds of 1997 (304) 206,976 182,146 389,122 405,000 02/01/08
Improvement Bonds of 1998 (307) 377,393 238,420 615,813 505,000 02/01/09
Improvement Bonds of 1999 (308) 401,354 580,796 982,150 930,000 02/01/10
Improvement Bonds of2000(309) 506,912 286,909 793,821 495,000 02101/11
Improvement Bonds of2001(310) 385,420 300,681 686,101 565,000 02/01/12
Improvement Bonds of 2003 (311) 314,142 718,453 1,032,595 1,060,000 02/01/13
Improvement Bonds of 2004C (314) 1,010,000 02/01/15
Total special assessment debt 2,907,071 2,437,137 5344,208 5,710,000 310,479
1 General Obligation Debt
Refunding State -Aid Street Bonds (306) 4,982 4,982 575,000 04/01/06
Police and Fire Building Bonds (305) 949,658 46,137 995,795 5,405,000 02/01/05
Police and Fire Building Bonds of 2004A (314) 5.045.000 02/01/13
Total general obligation debt 954,640 46,137 1,000,777 11,025,000 0
Total All Debt Service Funds $4,260,299 $2,483,274 $6,743,573 $39,180,000 $310,479
Future tax increment amounts subject to valuation and tax capacity rate fluctuations.
I Deferred revenue primarily consists of uncollected special assessments.
A
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City of
Minnesota
Audit Management Letter
Debt Service Funds
General Obligation Bonds
The State -Aid Street Bonds are funded by MSA construction allotments (principal
portion) and MSA maintenance allotments interest portion).
p
The Police and Fire Building Bonds were funded by an annual transfer of property tax
monies from the General Fund. Beginning 2004, property tax collections are allocated
directly to this fund.
305/314 306
199713/2004A 1998B
Bonds Bonds Total
Revenues:
Property taxes $768,774 $768,774
MSA 297,850 297,850
Investment earnings 8,672 5,182 13,854
Bonds issued
Total revenues 777,446 303,032 1,080,478
Expenditures:
Principal 470,000 270,000 740,000
Interest 264,467 27,850 292,317
Fiscal agent fees 1,030 200 1,230
Total expenditures 735,497 298,050 1,033,547
Increase (decrease) $41,949 $4,982 $46,931
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Brooklyn City of
Minnesota
Audit Management Letter
Debt Service Funds
Special Assessment Bonds
The Special Assessment Improvement Bonds are funded by a combination of resources.
These funding sources include special assessments and transfers from the General Fund. A
summary of 2004 financial activity is as follows:
301 302 303 304 307 308 309 310 311
1994 1995 1996 1997 1998 1999 2000 2001 2003
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total
Revenues:
Property taxes $62,823 $64,129 $110,594 $237,546
Special assessments 8,943 11,525 60,459 87,229 90,295 183,545 88,961 127,212 235,054 893,223
Investment earnings 1,839 1,024 5,606 2,527 4,761 7,054 4,992 3,318 31,121
Transfer from other funds
Total revenues 73,605 76,678 176,659 89,756 90,295 188,306 96,015 132,204 238,372 1,161,890
Expenditures:
Principal 90,000 85,000 150,000 105A00 110,000 160,000 80,000 80,000 145,000 1,005,000
Interest 7,632 10,488 27,412 20,683 22,602 47,945 25,135 23,063 33,497 218,457
Fiscal agent fees 978 1,048 1,369 878 690 881 807 602 981 8,234
Total expenditures 98,610 96,536 178,781 126,561 133.292 208,826 105,942 103,665 179,478 1,231,691
Increase (decrease) ($25,005) ($19,858) ($2,122) ($36.805) ($42,997) ($20.520) ($9,927) $28,539 $58,894 ($69,801)
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City of
Minnesota
Audit Management Letter i
Capital Projects Funds
CAPITAL PROJECTS FUNDS
The fund balances (deficits) of the Capital Projects Funds were as follows at December
31, 2003 and 2004:
Fund Balance (Deficit)
December 31, Increase/
Fund 2003 2004 (Decrease)
Capital Reserve Emergency $1,336,573 $1,346,261 $9,688
Capital Improvements 1,757,730 1,801,483 43,753
Municipal State Aid for Construction 430,581 598,373 167,792
Infrastructure Construction 229,179 757,270 528,091
Earle Brown Heritage Center Improvements 8,163 121,448 113,285
Street Reconstruction 283,891 1,525,891 1,242,000
Technology 275,000 541,424 266,424
Totals $4,321,117 $6,692,150 $2,371,033
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City of
Minnesota
Audit Management Letter
Capital Projects Funds
Capital Reserve Emergencv Fund (406)
The Capital Reserve Emergency Fund was established to account for monies held in
reserve for catastrophic losses or unforeseen capital items.
Financial activity for the past three years is as follows:
Capital Reserve Emergency Fund
2002 2003 2004
Revenue and other sources:
Investment earnings $47,174 $31,439 $9,688
Expenditures and other uses:
Expenditures 58,976 24,356
Increase (decrease) in fund balance (11,802) 7,083 9,688
Fund balance January 1 1,341,292 1,329,490 1,336,573
Fund balance December 31 $1,329,490 $1,336,573 $1,346,261
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City of Brooklyn
Minnesota
Audit Management Letter
Capital Projects Funds
Capital Improvements Fund (401)
The Capital Improvements Fund was established to provide funds for major capital
outlays.
Financial activity for the past three years is as follows:
Capital Improvements
2002 2003 2004
Revenue and other sources:
Investment earnings $60,737 $13,494 $9,336
Other 21,005 126,308 122,910
CFL grant 106,200
Transfer from General Fund 285,000 225,000 175,000
Transfer from City Initiatives Fund 11,277
Transfer from Liquor Fund 100,000 125,000
Total revenue 478,019 364,802 538,446
Expenditures and other uses:
Project costs 2,596,999 368,047 494,693
Increase (decrease) in fund balance (2,118,980) (3,245) 43,753
Fund balance January 1 3,879,955 1,760,975 1,757,730
Fund balance December 31 $1,760,975 $1,757,730 $1,801,483
This fund provides an interfund loan to the Golf Course Fund. The balance of the loan
was $850,000 at December 31, 2004.
City of
Minnesota
Audit Management Letter
Capital Projects Funds
A summary by project is as follows:
2004
Project Expenditures
Grandview Park Tennis Court (2004 -16) $24,561
Grandview Athletic Field Lighting (2004 -17) 139,214
Grandview Hockey Rink Lighting (2004 -18) 5,375
Grandview Miscellaneous Improvements (2004 -19) 5,115
Central Park Lighting (2004 -20) 5,995
Grandview Park Youth Activity Center 300,000
Other 14,433
Total $494,693
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City of
Minnesota
Audit Management Letter
Capital Projects Funds
Municipal State Aid for Construction Fund (402) i
The Municipal State Aid for Construction Fund was established to account for the state
allotment of gasoline tax collections. Transactions for the past three years have been as
follows:
Municipal State Aid for Construction
2002 2003 2004
Revenue and other sources:
MSA construction $1,337,502 $145,387 $604,510
MSA maintenance 90,000
Investment earnings 26,362 72 3,543
Other revenue 3,000 3,555
Total revenue and other sources 1,366,864 145,459 701,608
Expenditures and other uses:
Project costs 1,410,361 335,609
Transfer to Infrastructure Fund 533,816
Total expenditures and other uses 1,410,361 335,609 533,816
Increase (decrease) in fund balance (43,497) (190,150) 167,792
Fund balance January 1 664,228 620,731 430,581
Fund balance December 31 $620,731 $430,581 $598,373
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City of
Minnesota
Audit Management Letter
Capital Projects Funds
Infrastructure Construction Fund (407)
The Infrastructure Construction Fund was established to account for improvements
financed by special assessments. The financial transactions of this fund for the past three
years have been as follows:
Infrastructure Construction Fund
2002 2003 2004
Revenues and other sources:
Special assessments $260,752 $79,207 $420,557
Intergovernmental 2,487,946 332,182 378,147
Investment earnings 16,232 10,934 98
Other 12,843 24,554 32,569
Bond proceeds 1,196,140 1,002,286
Transfer from General Fund 555,000 480,000 375,000
Transfer from MSA Construction Fund 533,816
Residual equity transfer from General Fund 766,343
Total revenue and other sources 4,099,116 2,123,017 2,742,473
Expenditures and other uses:
Project costs 5,542,084 1,445,887 3,894,192
Increase (decrease) in fund balance (1,442,968) 677,130 (1,151,719)
Fund balance January 1 995,017 (447,951) 229,179
Fund balance (deficit) December 31 ($447,951) $229,179 ($922,540)
City of Brooklyn
Minnesota
Audit Management Letter
Capital Projects Funds
A summary by project is as follows:
2003 2004
Project Expenditures Expenditures
River Interceptor (99 -11) $30,047 $188,474
Garden City Central Improvement (00 -01) 6,726 499
Brooklyn Blvd Landscaping (00 -21) 1,298
Southwest Area Improvements (02 -01) 187,932 9,275
France Avenue Relocation (02 -04) 197,446 310,872
Garden City South Improvement (02 -05) 115,957 1,000
Shingle Creek Trail (02 -19) 61,784
Happy Hollow Improvements (03 -01, 02, 03, 04) 709,591 264,887
Northport Improvements (04 -01, 02, 03, 04) 29,001 2,560,483
Misc. Concrete Repair (03 -14) 26,002 11,322
Brooklyn Blvd Traffic Study (03 -15) 9,339
Shingle Creek Parkway (04 -12, 13, 14) 359,042
Other 70,764 188,338
Total $1,445,887 $3,894,192
Earle Brown Heritage Center Improvements Fund (408)
This fund was established to account for monies set aside for future improvements. i
City of Broo klyn
Minnes
Audit Management Letter
Capital Projects Funds
Street Reconstruction Fund (409)
This fund was established to account for road projects which are financed wholly or in
part by special assessments. This fund was formerly the Special Assessment Construction
Fund. Financial transactions for the past two years is as follows:
2003 2004
Revenue and other sources:
Interest income $252 $9,457
Transfer from General Fund 183,639 620,464
Transfer from Liquor Fund 100,000
Franchise fees 612,079
Total revenue and other sources 283,891 1,242,000
Expenditures and other uses
Increase in fund balance 283,891 1,242,000
Fund balance January 1 283,891
Fund balance December 31 $283,891 $1,525,891
�TO J
City of
Minnesota
Audit Management Letter
Capital Projects Funds
Technoloev Fund (410)
This fund was established in 2003 to account for funds set aside for technology
improvements or major technology renovations /replacements. Financial transactions for the
past two years is as follows:
2003 2004
Revenue and other sources:
Transfer from General Fund $275,000 $295,000
Interest earnings 4,868
Other 23,000
Total revenue and other sources 275,000 322,868
Expenditures and other uses 56,444
Increase in fund balance 275,000 266,424
Fund balance January 1 275,000
Fund balance December 31 $275,000 $541,424
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of Brooklyn
Minnesota
Audit Management Letter
Enterprise Funds
ENTERPRISE FUNDS
The City maintains eight Enterprise Funds as follows:
Municipal Liquor
Golf Course
Earle Brown Heritage Center
Recycling and Refuse
Street Light Utility
Water Utility
Sanitary Sewer
Storm Drainage
City of Brooklyn
Minnesota
Audit Management Letter
Enterprise Funds
Municipal Liquor Fund
The financial activity of this fund for the past three years has been as follows:
Municipal Liquor
2002 2003 2004
Amount Percent Amount Percent Amount Percent
Sales $3,435,556 100.0% $3,407,990 100.0% $4,026,679 100.0%
Cost of sales (2,593,765) (75.5 (2,554,637) (75.0 (3,035,621) (75.4
Gross margin 841,791 24.5% 853,353 25.0% 991,058 24.6%
Operating expenses:
Personal services 364,054 10.6% 381,227 11.2% 457,919 11.4%
Supplies 11,804 0.3% 25,669 0.8% 39,100 1.0%
Other services 100,202 2.9% 116,784 3.4% 139,727 3.5%
Insurance 7,433 0.2% 6,997 0.2% 11,176 0.3%
Utilities 11,828 0.3% 12,636 0.4% 27,066 0.7%
Rent 158,702 4.6% 144,499 4.2% 228,632 5.7%
Depreciation 35,580 1.0% 35,580 1.0% 35,624 0.9%
Total operating expense 689,603 19.9% 723,392 21.2% 939,244 23.5%
Operating income 152,188 4.6% 129,961 3.8% 51,814 1.1%
Other income (expense) net 29,506 0.9% 22,072 0.6% 12,857 0.3%
Transfer to Capital Projects Fund (100,000) (2.9 (100,000) (2.9 (125,000) (3.1
Change in net assets $81,694 2.6% $52,033 1.5% ($60,329) (1.7 0/6)
City of Broo klyn
Minnesota
Audit Management Letter
Enterprise Funds
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $247,882 $279,607 ($253,091) �l}
Less purchase of capital assets (50,932)
Subtotal 247,882 279,607 (304,023)
Transfer to Capital Improvements Fund (100,000) (100,000) (125,000)
Investment earnings 28,169 14,956 10,488
Net increase in cash and investments $176,051 $194,563 ($418,535)
Cash and investment balance at December 31 $801,993 $996,556 $578,021
The primary reason for use of cash is an increase in inventory of $277,000.
Comparison With Other Municipal Liauor Stores
The Office of the State Auditor (OSA) annually publishes "An Analysis of Minnesota
Municipal Liquor Store Operations. The most recent report available is for 2003. The
following analysis compares Brooklyn Center's liquor operations with those reported in the
OSA report.
There are twenty -two metro area cities that operate off -sale only operations. The City of
Brooklyn Center ranks 10th in sales among metro area cities.
It should be noted that the following compari sons are strictly a comparison of amounts
reported. There are a number of factors that affect operating results that are not included in
this comparison. These factors include the mix of product sold, philosophy regarding sales
techniques such as high volume /lower margin, demographics and location.
City of
Minnesota
Audit Management Letter
Enterprise Funds
Gross Margin Analvsis
The gross margin of the liquor operations has averaged 21 over the past five
years. Gross margin measures the sales less the direct cost of products sold. A
comparison to state averages for Minnesota municipal off -sale operations is as follows:
Cost of Gross Margin State
Sales Sales Amount Percent Average
1999 $3,560,613 $2,694,622 $865,991 24.3% 23.6
2000 3,584,829 2,734,318 850,511 23.7% 23.8%
2001 3,552,152 2,696,042 856,110 24.1% 24.0%
2002 3,435,556 2,593,765 841,791 24.5% 24.4%
2003 3,407,990 2,554,637 853,353 25.0% 23.9%
2004 4,026,679 3,035,621 991,058 24.6% Not available
Source: Minnesota Office of the State Auditor Metropolitan Area Off -Sale Operations
Oneratina Expenses
Operating expenses for the past several years have been as follows:
Percent of Sales
Year Amount City State Average
1999 $632,638 17.7 16.2%
2000 696,830 19.5% 16.5%
2001 643,452 18.1% 16.6%
2002 689,603 19.9% 16.2%
2003 723,392 21.2% 17.7%
2004 939,244 23.3% Not available
The City of Brooklyn Center does not compare favorably with State averages for
operating expenses.
i
Minnesota City of Brooklyn Center,
Audit Management Letter
Enterprise Funds
Net Income
Net income for the past several years is as follows:
Amount Percent of Sales
State State
Year City Average City Average
1999 $249,024 $142,546 6.9% 7.5%
2000 144,577 158,275 3.9% 7.7%
2001 272,734 163,125 7.7% 7.8
2002 181,694 155,981 5.5% 8.1%
2003 152,033 N/A 4.5% 7.0%
2004 64,671 N/A 1.6% N/A
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City of
Minnes
Audit Management Letter
Enterprise Funds
Golf Course Fund
The financial activity of this fund for the past three years has been as follows:
i
Golf Course
2002 2003 2004
Operating revenue:
Sales $278,664 $294,149 $284,992
Operating expenses:
Personal services 144,912 126,866 131,383
Supplies 29,219 19,501 15,616
Other services 64,203 88,494 73,313
Insurance 9,003 8,002 7,721
Utilities 13,758 17,208 15,123
Depreciation 13,045 27,912 27,971
Total expenses 274,140 287,983 271,127
Operating income $4,524 $6,166 $13,865
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $13,165 $38,292 $44,578
Less purchase of capital assets (11,161)
Less debt service (50,000) (15,000) (35,000)
Subtotal (47,996) 23,292 9,578
Investment earnings 2,606 1,048 1,571
Net increase (decrease) in cash and investments ($45,390) $24,340 $11,149
Cash and investment balance at December 31 $37,281 $61,621 $72,770
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City of Broo klyn
Minnes
Audit Management Letter
Enterprise Funds
Earle Brown Heritaee Center Fund
The financial activity of this fund for the past three years has been as follows:
Earl Brown Heritage Center
2002 2003 2004
Amount Percent Amount Percent Amount Percent
Sales $3,480,535 100.0% $3,393,810 100.0% $3,565,197 100.0%
Cost of sales (385,341) (11.1 (1,644,608) (48.5 (1,889,930) (53.0
Gross margin 3,095,194 88.9% 1,749,202 51.5% 1,675,267 47.0%
Operating expenses:
Personal services 1,740,912 56.2% 812,146 46.4% 819,068 48.9%
Supplies 275,360 8.9% 90,368 5.2% 129,728 7.7%
Other services 489,964 15.8% 340,303 19.5% 366,421 21.9%
Insurance 34,776 1.1% 30,672 1.8% 32,649 1.9%
Utilities 146,742 4.7% 157,339 9.0% 170,658 10.2%
Rent 88,019 2.8% 104,776 6.0% 93,062 5.6%
Depreciation 582,083 18.8% 571,632 32.7% 568,643 33.9%
Total operating expense 3,357,856 108.3% 2,107,236 120.6% 2,180,229 130.1%
Operating income (loss) (262,662) (19.4 (358,034) (69.1 (504,962) (83.1 0
Other income (expense) net 20,878 03% 11,631 0.7% 58,366 3.5%
Transfer to other funds (100,000) (3.2 0.0% (200,000) (11.9
Change in net assets ($341,784) (21.9 ($346,403) (68.4 ($646,596) (91.5 1
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $324,754 $171,524 $126,030
Less purchase of capital assets
Subtotal 324,754 171,524 126,030
Investment earnings 22,553 17,376 15,273
Transfer to EBHC Improvements Fund (100,000) (200,000)
Other (1,098)
Net increase (decrease) in cash and investments $246,209 $188,900 ($58,697)
Cash and investment balance at December 31 $666,529 $855,429 $796,732
City of
Minnesota
Audit Management Letter
Enterprise Funds
Recvcline and Refuse Fund
The financial activity of this fund for the past three years has been as follows:
Recycling and Refuse
2002 2003 2004
Operating revenue 21 4 212 271 214
p g 0,95 347
Operating expenses:
Other services 215,032 223,504 221,443
Insurance 179 175 1,378
Total operating expenses 215,211 223,679 222,821
Operating income (loss) ($4,257) ($11,408) ($8,474)
i
City of Brooklyn
Minnesota
Audit Management Letter
Enterprise Funds
Water Utilitv Fund
The financial activity of this fund for the past three years has been as follows:
Water Utility
2002 2003 2004
Operating revenue $1,364,076 $1,530,592 $1,583,450
Operating expenses:
Depreciation 698,773 648,115 588,767
All other 873,462 991,576 945,157
Total operating expenses 1,572,235 1,639,691 1,533,924
Operating income (loss) (208,159) (109,099) 49,526
Nonoperating revenues (expenses):
Income 68,864 46,717 32,636
Transfers net (631,440)
Total nonoperating revenues (expenses) 68,864 46,717 (598,804)
Change in net assets ($139,295) ($62,382) ($549,278)
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $437,240 $628,197 $533,977
Less purchase of capital assets (650,253) (309,930) (28,630)
Less debt service (56,302)
Subtotal (269,315) 318,267 505,347
Investment earnings 47,077 31,180 29,613
Transfer to Infrastructure Construction Fund (631,440)
Net increase (decrease) in cash and investments ($222,238) $349,447 ($96,480)
Cash and investment balance at December 31 $1,541,308 $1,890,755 $1,794,275
i
City of Brooklyn
Minnesota
Audit Management Letter
Enterprise Funds
Sanitary Sewer Fund
The financial activity of this fund for the past three years has been as follows:
Sanitary Sewer Fund
2002 2003 2004
Operating revenue $2,664,730 $2,870,109 $2,833,836
Operating expenses 2,550,584 2,556,224 2,310,645
Operating income (loss) 114,146 313,885 523,191
Nonoperating revenues (expenses):
Income 42,950 77,355 97,220
Transfers (555,614)
Change in net assets $157,096 $391,240 $64,797
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $660,035 $848,185 $994,102
Less purchase of capital assets (1,023,781) (416,742) (142,840)
Subtotal (363,746) 431,443 851,262
Investment earnings 42,678 26,473 33,018
Transfer to Infrastructure Construction Fund (555,614)
Net increase (decrease) in cash and investments ($321,068) $457,916 $328,666
Cash and investment balance at December 31 $682,184 $1,140,100 $1,468,766
i
City of Broo klyn
Minnes
Audit Management Letter
Enterprise Funds
Storm Drainatie Fund
The financial activity of this fund for the past three years has been as follows:
Storm Drainage
2002 2003 2004
Operating revenues
User fees $1,377,638 $1,264,512 $1,276,778
Special assessments 429,873 112,254 554
Other 26,363
Investment earnings 5,675 10,237 20,658
Total operating revenues 1,813,186 1,413,366 1,297,990
Operating expenses:
Personal services 100,000
Supplies 3,153 3,861 1,917
Other services 126,656 290,369 225,729
Insurance 1,932 1,292 1,328
Depreciation 474,574 513,608 527,619
Interest 36,701 25,835 9,054
Total operating expenses 743,016 834,965 765,647
Transfers 441,756
Change in net assets $1,070,170 $578,401 $90,587
r
4
j '9
City of Ce nter,
Minnesota
Audit Management Letter
Enterprise Funds
The cash flow of this fund has been as follows:
2002 2003 2004
Net cash from operating activities $1,126,992 $1,115,712 $1,041,553
Less purchase of capital assets (961,302) (323,343)
Less debt service (236,701) (235,835) (229,055)
Subtotal (71,011) 556,534 812,498
Investment earnings 5,674 14,321 23,527
Special assessments 429,873
Transfer to Infrastructure Construction Fund (441,756)
Net increase in cash and investments $364,536 $570,855 $394,269
Cash and investment balance at December 31 $343,221 $914,076 $1,308,345
Street LiLyht Utilitv Fund
This fund was established in 2004. The financial activity is as follows:
Street Light Utility Fund
2002 2003 2004
Operating revenues:
User fees $213,078 $200,224 $208,121
Other 8,060
Investment earnings 966 1,035 1,974
Total operating revenues 214,044 209,319 210,095
Operating expenses:
Other services 152,660 146,504 165,651
Transfers (51,000)
Change in net assets $61,384 $62,815 ($6,556)
rp
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1 `raj �0 tn t
City of
Minnesota
Audit Management Letter
Internal Service Funds
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing on a cost reimbursement
basis of goods or services provided by one department to another department within the City.
During 2004, the City maintained the following Internal Service Funds:
Internal Service Funds
Cash and Investment Balance
December 31,
Fund 2002 2003 2004
Compensated Absences $741,038 $795,418 $881,890
Retirement (Post Employment
Insurance Benefits) 1,574,666 1,564,375 1,529,053
Central Garage 4,198,486 4,541,395 4,779,713
Total $6,514,190 $6,901,188 $7,190,656
1
City of Brooklyn
Minnesota
Audit Management Letter
Other Matters
OTHER MATTERS
As required by Government Auditing Standards, we have issued an internal control
report. That report identified one reportable condition relating to grant monitoring.
Government Auditing Standards also requires communication of other matters that
came to our attention during the audit. They are as follows:
Outstanding Checks. The City has five outstanding checks from 2001 ($95) and 16
outstanding checks from 2002 ($5,187. Minnesota Statutes M.S. 345.41) require
unclaimed property held for more than three years be delivered to the State Commissioner of
Commerce.
Golf Course Z- Tapes. The golf course currently prepares a report that summarizes daily cash
register activity. These reports are forwarded to the finance department. However, the cash
register z -tapes are destroyed. We recommend the z -tapes be retained and forwarded to the
finance department.
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2004
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City o f B ro ok' n C enter
y
i Minnesota
i Draft Financial Statements
for the
Comprehensive Annual Financial Report
1 For the year ended December 31, 2004
1
1
Table of Contents
Table of Principal Officials 1
Organizational Chart 2
Statement of Net Assets 3
Statement of Activities 4
Governmental Funds
Balance Sheet 6
Statement of Revenues, Expenditures and Changes in Fund Balance 8
Reconciliation of Statement 10
Proprietary Funds
Statement of Net Assets 12
Statement of Revenues, Expenses and Changes in Fund Net Assets 14
Statement of Cash Flows 16
Notes to the Financial Statements 19
Required Supplementary Information
Budgetary Comparison Schedule- General Fund 49
Budgetary Comparison Schedule -Earle Brown Tax Increment District 55
Budgetary Comparison Schedule -Tax Increment District 3 56
Note A on Budgetary Compliance 57
Nonmajor Governmental Funds
Combining Balance Sheet 58
Combining Statement of Revenues, Expenditures and Changes 59
Subcombining Balance Sheet Special Revenue Funds 60
Subcombining Statement of Revenues Special Revenue Funds 62
Special Revenue Funds- Housing and Redevelopment Authority 64
Special Revenue Funds- Economic Development Authority 65
Special Revenue Funds -Tax Increment District 4 66
Special Revenue Funds- Police Drug Forfeiture Fund 67
Special Revenue Funds Community Development Block Grant 68
Special Revenue Funds -City Initiatives Grant Fund 69
Subcombining Balance Sheet -Debt Service Funds 70
Subcombining Statement of Revenue -Debt Service Funds 71
Subcombining Balance Sheet Capital Project Funds 72
Subcombining Statement of Revenues Capital Project Funds 74
l
Nonmajor Proprietary Funds
Subcombining Statement of Net Assets 76
Subcombining Statement of Revenues, Expenses and Changes 77
Subcombining Statement of Cash Flows 78
Internal Service Funds
Subcombining Statement of Net Assets 79
Subcombining Statement of Revenues, Expenses and Changes 80
Subcombining Statement of Cash Flows 81
H
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2004
Name Position Term of Office Term Expires
ELECTED OFFICIALS
Myrna Kragness Mayor Four Years December 31, 2006
S Kathleen Carmody Council Member Four Years December 31, 2006
Kay Lasman Council Member Four Years December 31, 2004
Diane Niesen Council Member Four Years December 31, 2006
Robert Peppe Council Member Four Years December 31, 2004
APPOINTED OFFICIALS
Michael J. McCauley City Manager Appointed
Curt Boganey Assistant City Manager Appointed
Charles LeFevre City Attorney Contractual Appointee
Sharon Knutson City Clerk Appointed
Scott Bechthold Police Chief Appointed
Todd Blomstrom Director of Public Works /City Engineer Appointed
Ronald Boman Fire Chief Appointed
James Glasoe Community Activities, Recreation Services Director Appointed
Brad Hoffman Community Development Director Appointed
Daniel Jordet Director of Fiscal Support Services Appointed
1
City of Brooklyn Center Organization
N 2004
Electorate I
City Council Advisory Commissions
Administration
City Attorney City Manager Human Resources
Communications
Information Technology
Elections
•Licenses
City Clerk
t
i�
Public Works Police Deoartment Community Activities, Enterorise'`
Engineering Patrol Recreation. and Services Liquor Stores
Street Maintenance investigation Earle Brown Heritage Center
Crime Prevention •Community Programs
Sanitary Sewer Recreation Programs
Central Garage Community Programs Community Center
Storm Sewer Support Services Government Buildings
Water Department Dispatch Golf Course
Park Maintenance
Fire Deoartment Fiscal and Suoaort Services Communitv Develooment
Fire Prevention Accounting Inspections
Fire Suppression Audit Economic Development
Emergency Preparedness Utility Billing Housing Redevelopment Authority
Risk Management Zoning
Assessing Planning
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2004 j P r
Primary Government
Governmental Business -Type
Assets: Activities Activities Total
Cash and investments 49,434,187 7,810,556 57,244,743
Receivables:
Interest 95,779 95,779
Accounts 273,202 1,640,086 1,913,288
Taxes 1,424,733 1,424,733
Special assessments 3,232,554 276,455 3,509,009
Internal balances 875,998 (875,998)
Due from other governments 741,569 741,569
Inventories and supplies 617,041 617,041
Prepaid expenses 1,504 1,504
Inventories at cost 28,120 160,466 188,586
Restricted assets:
Cash and investments 7,460,747 7,460,747
Capital assets net 34,583,271 36,359,095 70,942,366
Total assets 98,151,664 45,987,701 144,139,365
Liabilities:
Accounts payable 662,073 437,794 1,099,867
Deposits payable 209,740 209,740
Accrued salaries and wages 200,893 28,184 229,077
Accrued health insurance 1,548,581 1,548,581
Accrued interest payable 406,484 406,484
Unearned revenue 14,566 135,861 150,427
Compensated absences payable:
Due within one year 857,305 857,305
Bonds payable:
Due within one year 9,815,000 230,000 10,045,000
Due in more than one year 29,365,000 29,365,000
Total liabilities 42,869,902 1,041,579 .43,911,481
Net assets:
Invested in capital assets, net of related debt 2,080,436 36,359,095 38,439,531
Restricted for:
Debt service 11,198,325 11,198,325
Tax increment purposes 24,317,766 24,317,766
Unrestricted 17,685,235 8,587,027 26,272,262
Total net assets 55,281,762 44,946,122 100,227,884
Fund Balance restrictions and investment in capital assets to be determined
The accompanying notes are an integral part of these'fmancial statements. 3
II
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES f
For The Year Ended December 31, 2004
Charges For
Expenses Services
Functions /Proerams
Primary government:
Government activities:
General government 2,678,467 315,120
Public safety 7,566,713 687,731
Public works 2,486,899 23,533
Community services 67,324
Parks and recreation 2,255,232 618,199
Economic development 1,357,950
Nondepartmentat 333,669
Administrative services reimbursement (784,084)
Interest on long -term debt 1,218,030
Total government activities 17,180,200 1,644,583
Business -type activities:
Municipal liquor 939,244 991,058
Golf course 271,127 284,992
E. Brown Heritage Center 2,180,229 1,675,267
Recycling and refuse 222,821 214 208 ,,347 121
Street light utility 165,651
Water utility 1,533,924 1,583,450
Sanitary sewer 2,310,645 2,833,836
Storm drainage 756,593 1,276,778
Total business -type activities 8,380,234 9,067,849
Total primary government 25,560,434 10,712,432
4 The accompanying notes are an integral part of these financial statements.
J Statement 2
i
Net (Expense) Revenue and
1 Program Revenues Changes in Net Assets
Operating Capital Primary Government
Grants and Grants and Governmental Business -Type
Contributions Contributions Activities Activities Total
(2,363,347) (2,363,347)
788,831 (6,090,151) (6,090,151)
90,000 2,423,411 50,045 50,045
54,273 (13,051) (13,051)
(1,637,033) (1,637,033)
(1,357,950) (1,357,950)
(333,669) (333,669)
784,084 784,084
(1,218,030) (1,218,030)
933,104 2,423,411 (12,179,102) (12,179,102)
51,814 51,814
13,865 13,865
(504,962) (504,962)
(8,474) (8,474)
42,470 42,470
49,526 49,526
523,191 523,191
520,185 520,185
687,615 687,615
1 933,104 2,423,411 (12,179,102) 687,615 (11,491,487)
General revenues:
Property taxes 11,444,064 11,444,064
P
Tax increment collections 4,286,172 4,286,172
Grants and contributions not
restricted to specific programs 912,253 912,253
Unrestricted investment earnings 486,341 102,696 589,037
Loss on disposal of fixed asset (263,943) (263,943)
Other 1,186,850 117,864 1,304,714
Transfers 2,004, 810 (325,000) 1,679, 810
Total general revenues and transfers 20,056,547 (104,440) 19,952,107
Change in net assets 7,877,445 583,175 8,460,620
Net assets beginning 47,404,317 44,362,947 91,767,264
1
Net assets ending 55,281,762 44,946,122 100,227,884
The accompanying notes are an integral part of these financial statements. 5
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET r a
GOVERNMENTAL FUNDS a
December 31, 2004
Earle Brown
T1F
Assets
General District
Cash and investments 7,060,259 20,374
Receivables:
Interest 95,779
Current taxes 95,904
22,720 19,365
Accounts
Delinquent taxes 467,754 97,499
Special assessments
Due from other funds
Due from other governments 19,111
Prepaid expenses 1,504
Advances to other funds 105,074
Restricted assets:
Cash and investments 119,153
Total assets 7,987,258 137,238
Liabilities and Fund Balances
Liabilities:
Accounts payable 353,040
Due to other funds 1,200,000
Due to other governments
Accrued salaries and wages 190,883 90
Advances from other funds 698,143
Deferred revenue 473,886 97,499
Total liabilities 1,017,809 1,995,732
Fund balances:
Reserved for:
Prepaid items 1,504
Loan receivable 105,074
Debt service
Unreserved:
Designated reported in:
General Fund 6,862,871
Special Revenue Funds
Capital Project Funds
Undesignated reported in:
General Fund
Special Revenue Funds (1,858,494)
Capital Project Funds
Total fund balances 6,969,449 (1,858,494)
Total liabilities and fund balances 7,987,258 137,238
t
6 The accompanying notes are an integral part of these financial statements.
I a Statement 3
TIF Special Other Infra- Total
District Assessment Infrastructure Governmental Activity Governmental
No. 3 Bonds Construction Funds Eliminations Funds
24,648,976 2,893,144 268,576 7,352,202 42,243,531
95,779
1,792 6,310 104,006
35,347 9,146 174,737 261,315
643,088 34,814 77,572 1,320,727
2,41 4 818,091 3,232,554
4 63
1,200,000 (1,200,000)
664,066 58,392 741,569
1,504
1,443,069 (698,143) 850,000
2,392,658 4,948,936 7,460,747
28,920,069 5,344,213 1,759,879 14,061,218 (1,898,143) 56,311,732
12,017 147,651 96,418 609,126
(1,200,000)
634 2,185 3,731 197,523
(698,143)
643,088 2,437,140 852,773 86,006 4,590,392
655,739 2,437,140 1,002,609 186,155 (1,898,143) 5,397,041
1,504
105,074
2,907,073 7,646,251 10,553,324
6,862,871
19,565,759 19,565,759
4,491,811 4,491,811
8,698,571 1,737,001 8,577,078
757,270 757,270
28,264,330 2,907,073 757,270 13,875,063 50,914,691
28,920,069 5,344,213 1,759,879 14,061,218 (1,898,143) 56,311,732
Fund balance reported above 50,914,691
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are not
financial resources, and therefore, are not reported in the funds 32,539,964
Other long -term assets are not available to pay for current-
period expenditures and, therefore, are deferred in the funds. 4,575,826
Long -term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the funds. (39,586,484)
Internal service funds are used by management to charge the cost of certain activities to individual funds.
The assets and liabilities are included in the governmental statement of net assets 6,837,765
Net assets of governmental activities 55,281,762
The accompanying notes are an integral part of these financial statements. 7
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AN
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
Earle Brown
TIF
General District
Revenues:
Taxes and special assessments 10,025,495 725,544
Licenses and permits 678,077
Intergovernmental 1,419,210
Charges for services 678,057
Court fines 254,980
Investment earnings (net of market value adjustment) 86,208 7,982
Miscellaneous 93,702
Total revenues 13,235,729 733,526
Expenditures:
Current:
General government 2,585,597
Public safety 6,642,254
Public works 1,679,440
Community services 67,324
Parks and recreation 1,981,998
Economic development 311,698 30,653
Nondepartmental 333,669
Administrative services reimbursement (784,084)
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Nondepartmental
Debt service:
Principal retirement
Interest
Paying agent fees
Total expenditures 12,817,896 30,653
Revenues over (under) expenditures 417,833 702,873
Other financing sources (uses):
Bonds issued
Discount on debt issued
Purchase of land
Transfers in
Transfers out (1,465,464) (876,000)
Total other financing sources (uses) (1,465,464) (876,000)
Net increase (decrease) in fund balance (1,047,631) (173,127)
Fund balance January 1 8,017,080 (1,685,367)
Fund balance December 31 6,969,449 (1,858,494)
8 The accompanying notes are an integral part of these financial statements.
1 l Statement 4
1
TIF Special Other Intra Total
District Assessment Infrastructure Governmental Activity Governmental
No.3 Bonds Construction Funds Eliminations Funds
2,880,586 1,130,769 420,557 1,220,227 16,403,178
678,077
378,147 1,441,663 3,239,020
22,041 11,428 711,526
254,980
137,468 31,121 98 116,962 379,839
10,528 1,117,751 1,221,981
3,018,054 1,161,890 831,371 3,908,031 22,888,601
8,444
2
1 423,845 7,066,099
127,739 6,928 1,814,107
6 7,324
1,981,998
505,664 509,639 1,357,654
333,669
(784,084)
137,456 137,456
3,765,453 487,765 4,253,218
1,005,000 2,515,000 3,520,000
218,457 612,995 831,452
8,234 1,000 47,399 56,633
505,664 1,231,691 3,894,192 4,749,471 23,229,567
2,512,390 (69,801) (3,062,821) (841,440) (340,966)
19,715,000 1,010,000 5,045,000 25,770,000
(82,350) (7,714) (6,439) (96,503)
(293,145) (293,145)
2,588,626 2,514,987 (3,098,803) 2,004,810
(757,339) 3,098,803
I 19,632,650 3,590,912 6,503,064 27,385,162
22,145,040 (69,801) 528,091 5,661,624 27,044,196
6,119,290 2,976,874 229,179 8,213,439 23,870,495
28,264,330 2,907,073 757,270 13,875, 063 50 914
691
The accompanying notes are an integral part of these financial statements. 9
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVE.NUES, f� Statement 5
EXPENDITURES, AND CHANGES IN FUND BALA CE O
GOVERNMENTAL FUNDS r"
For The Year Ended December 31, 2004
Amounts reported for governmental activities in the
statement of activities are different because:
Net changes in fund balances total governmental funds (statement 4) 27,044,196
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current
period. 3,038,634
In the statement of activities, only the gain on the sale of capital
assets is reported. However, in the governmental funds, the
proceeds from the sale increase financial resources. Thus, the
change in net assets differs from the change in fund balance by the
cost of the capital assets sold.
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. 367,861
The issuance of g
e. debt bonds long-term provides current financial resources
g leases)
to governmental funds, while the repayment of the principal of long -term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any effect on net assets. This amount is the net effect of these differences in the treatment
of long -term debt and related items. (22,250,000)
Internal service funds are used by management to charge the cost of
certain activities to individual funds. This amount is net revenue attributable to
governmental activities. 6,700
Accrued interest reported in the statement of activities does not require the use
of current financial resources and, therefore, is not reported as
expenditures in governmental funds. (329,946)
Change in net assets of governmental activities (statement 2) 7,877,445
10 The accompanying notes are an integral part of these financial statements.
Y
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f
s
This page has been left blank intentionally.
11
CITY F BROOKLYN CENTE NE
C O R, MINNESOTA
STATEMENT OF NET ASSETS j' l
PROPRIETARY FUNDS
December 31, 2004
Business -Type Activities
Major Enterprise Funds
Municipal Golf Earle Brown
Liquor Course Heritage Center
Assets:
Current assets:
Cash and cash equivalents 578,021 72,770 796,733
Accounts receivable net 7,990 275,315
Special assessments receivable
Prepaid items 20,799 11,958
Inventories at cost 552,689 1,715 34,789
Total current assets 1,159,499 74,485 1,118,795
Noncurrent assets:
Capital assets:
Land 1,390,402 1,493,300
Land improvements 40,258 327,830
Buildings and structures 192,771 487,946 11,091,389
Machinery and equipment 111,166 11,160 45,544
Mains and lines
Total capital assets 303,937 1,929,766 12,958,063
Less: Allowance for depreciation (142,362) (184,815) (4,641,453)
Net capital assets 161,575 1,744,951 8,316,610
Total noncurrent assets 161,575 1,744,951 8,316,610
Total assets 1,321,074 1,819,436 9,435,405
Liabilities:
Current liabilities:
Accounts payable 154,952 959 226,239
Deposits payable 209,740
Accrued salaries payable 7,754 932 11,623
Accrued interest payable
Deferred revenue 145 1,600
Current portion of long -term debt
Advances from other funds 850,000
Total current liabilities 162,851 851,891 449,202
Noncurrent liabilities:
Bonds payable
Compensated absences payable
Accrued health insurance liability
Total noncurrent liabilities
Total liabilities 162,851 851,891 449,202
Net assets:
Invested in capital assets, net of related debt 161,575 1,744,951 8,316,610
Unrestricted 996,648 (777,406) 669,593
Total net assets 1,158,223 967,545 8,986,203
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net assets of business -type activities
12 The accompanying notes are an integral part of these financial statements.
Statement 6
Business -Type Activities
Major Enterprise Funds Other
Water Sanitary Storm Enterprise Total Internal Total
Utility Sewer Drainage Funds Enterprise Service Proprietary
1,788,154 1,468,766 1,308,346 117,957 6,130,747 7,190,656 13,321,403.
345,723 651,272 261,776 98,010 1,640,086 11,887 1,651,973
269,573 2,864 4,018 276,455 276,455
500 127,209 160,466 160,466
27,848 617,041 28,120 645,161
2,431,798 2,250,111 1,574,140 215,967 8,824,795 7,230,663 16,055,458
23,093 3,389 287,158 3,197,342 3,197,342
368,088 368,088
3,365,558 2,623,691 17,761,355 17,761,355
128,668 179,130 475,668 5,807,809 6,283,477
13,715,708 12,450,492 11,979,555 38,145,755 38,145,755
17,233,027 15,256,702 12,266,713 59,948,208 5,807,809 65,756,017
(9,539,361) (7,023,632) (2,057,490) (23,589,113) (3,764,502) (27,353,615)
7,693,666 8,233,070 10,209,223 36,359,095 2,043,307 38,402,402
7,693,666 8,233,070 10,209,223 36,359,095 2,043,307 38,402,402
10,125,464 10,483,181 11,783,363 215,967 45,183,890 9,273,970 54,457,860
17,023 16,186 9,700 12,735 437,794 52,947 490,741
209,740 209,740
5,942 1,933 28,184 3,370 31,554
134,116 135,861 135,861
230,000 230,000 230,000
850,000 850,000
157,081 18,119 239,700 12,735 1,891,579 56,317 1,947,896
857,305 857,305
1,548,581 1,548,581
2,405,886 2,405,886
157,081 18,119 239,700 12,735 1,891,579 2,462,203 4,353,782
7,693,666 8,233,070 10,209,223 36,359,095 2,043,307 38,402,402
2,274,717 2,231,992 1,334,440 203,232 6,933,216 4,768,460 11,701,676
9 10,465,062 11,543,663 203,232 43,292,311 6,811,767 50,104,078
(25,988)
43,266,323
The accompanying notes are an integral part of these financial statements. 13
YN CENTER MINNESOTA
CITY OF BROOKE
STATEMENT OF REVENUES, EXPENSES AND r r�
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Business -Type Activities
Major Entemrise Funds
Municipal Golf Earle Brown
Liquor Course Heritage Center
Operating revenues:
Sales and user fees 4,026,679 284,992 3,565,197
Cost of sales 3,035,621 1,889,930
Total operating revenues 991,058 284,992 1,675,267
Operating expenses:
P g P
Personal services 457,919 131,383 819,068
Supplies 39,100 15,616 129,728
Other services 139,727 73,313 366,421
Insurance 11,176 7,721 32,649
Utilities 27,066 15,123 170,658
Rent 228,632 93,062
Depreciation 35,624 27,971 568,643
Total operating expenses 939,244 271,127 2,180,229
Operating income (loss) 51,814 13,865 (504,962)
Nonoperating revenues (expenses):
Investment earnings 9,209 1,379 13,485
Special assessments
Gain (loss on sale of fixed asset
Other revenue 3,648 2,989 44,881
Interest and fiscal agent fees
Total nonoperating revenues (expenses) 12,857 4,368 58,366
Income (loss) before contributions and transfers 64,671 18,233 (446,596)
Transfers:
Transfer to Capital Project Funds (125,000) (200,000)
Change in net assets (60,329) 18,233 (646,596) 1
Net assets January 1 1,218,552 949,312 9,632,799
Net assets December 31 .1,158,223 967,545 545 8 986 203
14 The accompanying notes are an integral part of these financial statements.
1 Statement 7
Business -Type Activities
Major Enterprise Funds Other Total
Water Sanitary Storm Enterprise Intra Activity Enterprise Internal Total
utility Sewer Drainage Funds Elimination Funds Service Proprietary
1,583,450 2,833,836 1,276,778 422,468 $13,993,400 1,047,210 $15,040,610
4,925,551 4,925,551
1,583,450 2,833,836 1,276,778 422,468 9,067,849 1,047,210 10,115,059
361,918 135,907 1,906,195 330,306 2,236,501
148,368 12,572 1,917 77 347,378 237,261 584,639
302,751 1,663,580 225,729 233,061 3,004,582 89,566 3,094,148
9,930 4,773 1,328 2,657 70,234 43,497 113,731
122,190 24,389 152,677 512,103 2,555 514,658
321,694 321,694
588,767 469,424 527,619 2,218,048 523,346 2,741,394
1,533,924 2,310,645 756,593 388,472 8,380,234 1,226,531 9,606,765
49,526 523,191 520,185 33,996 687,615 (179,321) 508,294
26,020 28,990 20,658 2,955 102,696 106,502 209,198
13,262 220 554 14,036 14,036
29,202 29,202
(6,646) 68,010 112,882 50,316 163,198
(9,054) (9,054) (9,054)
32,636 97,220 12,158 2,955 220,560 186,020 406,580
82,162 620,411 532,343 36,951 908,175 6,699 914,874
(631,440) (555,614) (441,755) (51,000) (2,004,809) (2,004,809)
(549,278) 64,797 90,588 (14,049) (1,096,634) 6,699 (1,089,935)
i 10,517,661 10,400,265 11,453,075 217,281 44,388,945 6,805,068 51,194,013
9,968,383 $10,465,062 $11,543,663 203,232 $43,292,311 6,811,767 $50,104,078
The accompanying notes are an integral part of these financial statements. 15
CITY OF BROOKLYN CENTER MINNESOTA
STATEMENT OF CASH FLOWS 1
PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Business -Type Activities
Major Enterprise Funds
Municipal Golf Earle Brown
Liquor Course Heritage Center
Cash flows from operating activities:
Receipts from customers and users 3,751,751 284,992 3,532,400
Receipts from interfund services provided
Payments to suppliers (3,537,465) (110,445) (2,606,682)
Payments to employees (469,745) (132,767) (842,781)
Miscellaneous revenue 2,368 2,798 43,093
Net cash flows from operating activities (253,091) 44,578 126,030
Cash flows from noncapital financing activities:
Principal repayments on advance (35,000)
Tr
ansfers out (125,000) (200,000)
Net cash flows from noncapital financing activities (125,000) (35,000) (200,000)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (50,932)
Principal paid on revenue bonds
Interest paid on revenue bonds Net cash flows from capital and related financial activities (50,932)
Cash flows from investing activities:
Interest on investments 10,488 1,571 15,273
Net cash flows from investing activities 10,488 1,571 15,273
Net increase (decrease) in cash and cash equivalents (418,535) 11,149 (58,697)
Cash and cash equivalents January 1 996,556 61,621 855,429
Cash and cash equivalents December 31 578,021 72,770 796,732
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 51,814 13,865 (504,962)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
24 27
Depreciation 35,6 971 568,6
Changes in assets and liabilities:
Decrease (increase) in receivables 2,367 (10,523)
Decrease (increase) in inventories (277,444) 1,865 (371)
Decrease (increase) in prepaid expenses 4 (3,594)
Increase (decrease) in payables (56,143) (537) 75,768
Increase (decrease) n accrued expenses (11,826) (1,384) (23,714)
P
Increase (decrease) in accrued deferred revenue 145 (18,310)
Other nonoperating income 2,368 2,798 43,093
Total adjustments (304,905) 30,713 630,992
Net cash provided by operating activities (253,091) 44,578 126,030
16 The accompanying notes are an integral art of these financial statements.
P
Statement 8
r
Business -Type Activities
Major Enterprise Funds Other Total
Water Sanitary Storm Enterprise Enterprise Internal Total
Utility Sewer Drainage Funds Funds Service Proprietary
1,529,230 2,842,750 1,286,228 416,147 13,643,498 13,643,498
1,038,818 1,038,818
(627,517) (1,773,293) (242,359) (376,808) (9,274,569) (345,016) (9,619,585)
(370,759) (139,557) (1,955,609) (262,031) (2,217,640)
3,023 64,202 (2,316) (410) 112,758 64,721 177,479
533,977 994,102 1,041,553 38,929 2,526,078 496,492 3,022,570
(35,000) (35,000)
1 (631,440) (555,614) (441,755) (51,000) (2,004,809) (2,004,809)
(631,440) (555,614) (441,755) (51,000) (2,039,809) (2,039,809)
(34,751) (142,840) (228,523) (328,324) (556,847)
(220,000) (220,000) (220,000)
(9,055) (9,055) (9,055)
(34,751) (142,840) (229,055) (457,578) (328,324) (785,902)
29,613 33,018 23,527 3,365 116,855 121,300 238,155
29,613 33,018 23,527 3,365 116,855 121,300 238,155
(102,601) 328,666 394,270 (8,706) 145,546 289,468 435,014
1,890,755 1,140,100 914,076 126,663 5,985,200 6,901,188 12,886,388
1,788,154 1,468,766 1,308,346 117,957 6,130,746 7,190,656 13,321,402
49,526 523,191 520,185 33,996 687,615 (179,321) 508,294
588,767 469,424 527,619 2,218,048 523,346 2,741,394
(59,720) 8,914 9,450 (6,321) (55,833) (8,392) (64,225)
(258) (276,208) (13,268) (289,476)
(362) (8,489) (12,441) (12,441)
(44,278) (59,490) (3,352) 11,664 (76,368) 41,131 (35,237)
(8,841) (3,650) (10,033) (59,448) 68,275 8,827
6,120 (12,045) (12,045)
3,023 64,202 (2,316) (410) 112,758 64,721 177,479
484,451 470,911 521,368 4,933 1,838,463 675,813 2,514,276
533,977 994,102 1,041,553 38,929 2,526,078 496,492 3,022,570
The accompanying notes are an integral part of these financial statements. 17
cj
r
This a has been left blank Intentional/
Pa9 Y
18
CITY OF BROOKLYN CENTER, M OTA r f s
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Brooklyn Center, Minnesota (the City) was formed and operates pursuant to applicable
Minnesota laws and statutes. The governing body consists of a mayor and four City Council members
elected at -large to serve four -year staggered terms.
A. FINANCIAL REPORTING ENTITY
As required by accounting principles generally accepted in the United States of America, the City's
financial statements include all funds and departments of the City and the City's component units.
The component units discussed below are included in the City's reporting entity because of the
significance of their operational or financial relationship with the City.
BLENDED COMPONENT UNITS
Blended component units, although legally separate, are in substance, part of the government's
operations; data from these units are combined with data of the primary government.
These additional units are the Economic Development Authority (EDA) and the Housing and
Redevelopment Authority (HRA) in and for the City of Brooklyn Center.
The governing board for each Authority is the City Council. The Council reviews and approves
the HRA tax levy and the City provides major community development financing for EDA and
HRA activities. Debts issued for EDA and HRA activities are City general obligations. Although
the EDA and HRA are legally separate from the City, they are reported as part of the City because
the governing boards are the same. Complete financial statements for the EDA and HRA may be
obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota
55430
JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
The City has several agreements with other entities that provide reduced costs, better service, and
additional benefits to the participants. The programs in which the City participates are listed
below and amounts recorded within the current year's financial statements are disclosed.
Local Government Information Svstems Association (LOGIS)
This consortium of approximately 30 government entities provides computerized data processing
and support services to its members. LOGIS is legally separate; the City does not appoint a voting
majority of its board, and the Consortium is fiscally independent of the City. The total amount
recorded within the 2004 financial statements of the City is $439,830 for general services and
application upgrades provided. Costs were allocated to the various funds based on applications
and/or use of services. Complete financial statements may be obtained at the LOGIS offices
located at 5750 Duluth Street, Golden Valley, Minnesota 55422.
19
l� t
CITY OF BROOKLYN CENTER, MI E 'IrA
NOTES TO FINANCIAL STATEMEN
December 31, 2004
Loeis Insurance Grout)
This group provides cooperative purchasing of health and life insurance benefits for approximately
45 governmental entities. The total of 2003 health and life insurance costs paid by the City was
$942,380. Complete financial statements may be obtained from Stanton Group located at 3405
Annapolis Lane, Plymouth, Minnesota 55447.
OTHER
The Brooklvn Center Fire Denartment Relief Association (the Association)
The Association is organized as a nonprofit organization, legally separate from the City, by its
members to provide pension and other benefits to members in accordance with Minnesota Statutes.
Its board of directors is elected by the membership of the Association and not by the City Council
The Association issues its own set of financial statements. All funding is conducted in accordance
with applicable Minnesota Statutes, whereby state aids flow to the Association, tax levies are
determined by the Association and are only reviewed by the City. The Association pays benefits
directly to its members. The Association may certify tax levies to Hennepin County directly if the
City does not carry out this function. Because the Association is fiscally independent of the City,
the financial information of the Association has not been included within the City's financial
statements. (See Note 15b for disclosures relating to the pension plan operated by the
Association.) The City's portion of the costs of the Association's pension benefits is included in
the General Fund under public safety. Complete financial statements for the Association may be
obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota
55430.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS i
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the primary
government and its component units. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business -type activities, which rely
to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or business -type activity are offset by program revenues. Direct expenses are those that
are clearly identifiable with a specific function or business -type activity. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business -type activity and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function or business type activity. Taxes and other items not included among program revenues
are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
20
ff
CITY OF BROOKLYN CENTER, XV 0JA /'1
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the Proprietary Fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers all revenues, except reimbursement
grants, to be available if they are collected within 60 days of the end of the current fiscal period.
Reimbursement grants are considered available if they are collected within one year of the end of
the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. All other revenue items are considered to be measurable and available only
when cash is received by the government.
The government reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Earle Brown TIF District Special Revenue Fund has the authority to collect tax
increments which are used for the historic restoration of the Earle Brown Farm and for debt
service payments of bonds which were issued for the same purpose.
The TIF District No. 3 Sp ecial Revenue Fund has the authority to collect tax increments which
p tY
are used for various redevelopment projects within the City and for debt service payments of
bonds which were issued for the same purpose.
The Special Assessment Bonds Debt Service Fund is used to account for the accumulation of
resources for the payment of special assessment bonds. These bonds were sold to finance
certain public improvements such as residential streets and storm sewers or the provision of
services which are to be paid for wholly or in part from special assessments levied against
benefited property.
21
J
CITY OF BROOKLYN CENTER, MI E rA
NOTES TO FINANCIAL STATEMEN"It
December 31, 2004
The In astructure Construction Capital Projects Fund was established to account for the
resources and expenditures required for the acquisition and construction of capital facilities or
improvements financed wholly or in part by special assessments levied against benefited
properties.
The government reports the following major proprietary funds:
The Municipal Liquor Fund accounts for the operations of the City's municipal off -sale liquor
9
stores.
The Golf Course Fund accounts for operations of Centerbrook Golf Course, a 9 hole par 3
course owned by the.City.
The Earle Brown Heritage Center Fund accounts for the operation of a convention center.
The Earle Brown Heritage Center is a pioneer farmstead that has been historically preserved
and restored as a modern multipurpose facility. Its convention center can host conferences,
trade shows, and concerts seating 1,000 people in either banquet or theater style. The facility
hosts many meetings, parties, weddings and receptions.
The Water Utility Fund accounts for the provision of water to customers. Administration,
wells, water storage, and distribution are included.
The Sanitary Sewer Fund accounts for the collection and pumping of sanitary sewage through
a system of sewer lines and lift stations. Sewage is treated by the Metropolitan Council
Environmental Services whose fees represent about 66 of this fund's expenses.
The Storm Drainage Fund accounts for the operations and improvements of the storm water
drainage system. It incorporates not only the storm sewer system, but also water structures
such as holding ponds and facilities to improve water quality. Fees are based upon the amount
of water running off a property and vary with both size and absorption characteristics of the
parcel.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government -wide and proprietary-fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private
sector guidance for their business -type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private- sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as
revenues, expenditures or expenses if they involved external organizations, such as buying goods
and services or payments in lieu of taxes, are similarly treated when they involve other funds of the
City of Brooklyn Center. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
22
CITY OF BROOKLYN CENTER, MV )0JA J 1—'- 1
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
I
Additionally, the government reports the following fund type:
Internal Service Funds account for compensated absences, health care insurance benefits and
central garage services provided to other departments of the City on a cost reimbursement
basis.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the municipal liquor, golf course, Earl Brown Heritage Center,
water utility, sanitary sewer, storm drainage and street light enterprise funds are charges to
customers for sales and services. Operating expenses for enterprise funds include the cost of sales
and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the
government's policy to use restricted resources first, then unrestricted resources as they are
needed.
D. BUDGETS
The City Charter grants the City Council full authority over the financial affairs of the City. The
City Manager is charged with the responsibility of preparing the estimates of the annual budget and
the enforcement of the provisions of the budget as specified in the City Charter. Upon adoption of
the annual budget resolution by the Council, it becomes the formal appropriation budget for City
operations. All budget adjustments must be approved by the Council. Budgets for the General and
Special Revenue Funds are adopted on a basis consistent with accounting principles generally
accepted in the United States of America. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is, at present, not considered necessary to assure effective
budgetary control or to facilitate effective cash management.
23
1" 1
CITY OF BROOKLYN CENTER, MI NE ItA
NAN
NOTES TO FINANCIAL STATEMEN C
December 31, 2004
LEGAL COMPLIANCE BUDGETS
The City follows these procedures establishing the budgetary data reflected in the financial
statements:
1. In August, the City Manager submits to the City Council proposed operating budgets for
the fiscal year commencing the following January. The operating budgets include
expenditures and the means of financing them.
2. The County mails individual property tax notices showing the taxes that would result from
the proposed budgets of all taxing units to each property owner in November.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted with the passage of resolutions by the City Council in the
month of December.
5. The City Council must authorize any transfer of budgeted amounts between departments
within the General Fund. A transfer of budgeted amounts within individual departments
must be authorized by the City Manager.
6. Supplemental appropriations during the year may only be made by the City Council.
These amounts must be financed by funds from a contingency reserve set up in the
General Fund or by additional revenues.
7. All budget amounts lapse at the end of the year to the extent they have not been expended
or re- encumbered by City Council directive in the following fiscal year.
8. Formal budgetary integration is employed as a management control device during the year
for all governmental funds with the exception of Debt Service Funds and Capital Project
Funds. Formal budgetary integration is not employed for Debt Service Funds because
effective budgetary control is alternatively achieved through general obligation bond
indenture provisions. Budgetary control for Capital Projects Funds is accomplished
through the use of project controls and project length budgets.
9. Budgets are adopted on a basis consistent with accounting principles generally accepted
in the United States of America. Annual appropriated budgets are adopted for all
governmental funds except for the project -length Capital Projects Funds and Debt Service
Funds.
10. Budgetary control is maintained at the department level for the General Fund and at the
fund level for all other governmental funds that adopt annual budgets.
11. Budgeted amounts are as originally adopted, or as amended by the City Council.
Individual and aggregate amendments were not material in relation to the original
appropriations.
BUDGET VARIANCES
For the year ended December 31, 2004, expenditures exceeded appropriations in the Economic
Development Authority, Police Drug Forfeiture and City Initiatives Grant Special Revenue Funds
by $25,572, $51,952 and $163,789 respectively.
24
CITY OF BROOKLYN CENTER, MIINR4 OrI A
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
E. CAS H AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent available in certificates of
deposit, U.S. government securities and other securities authorized by State Statute. Investment
income is allocated to the respective funds on the basis of applicable cash balance participation by
each fund. Investments are stated at fair value, based upon quoted market prices as of the balance
sheet date. Investment income is accrued at the balance sheet date.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received. These interfund
balances are eliminated on the government -wide financial statements.
For purposes of the statement of cash flows the City considers all highly liquid investments with a
maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary funds have original maturities of 90 days or less.
Therefore the entire balance in the Proprietary Funds are considered cash equivalents.
F. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as interfund
receivables payables." All short-term interfund receivables and payables at December 31, 2004
are planned to be eliminated in 2005. Long -term interfund loans are classified as "interfund loan
receivable /payable." Any residual balances outstanding between the governmental activities and
business -type activities are reported in the government -wide financial statements as "internal
balances."
Property taxes and special assessments have been reported net of estimated uncollectible accounts.
(See Note 1 G and I) Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables
and have not been reported.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible
for billing and collecting all property taxes for itself, the City, the local School District and other
taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the
City at that date. Real property taxes are payable (by property owners) on May 15 and October 15
of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June
30 of each year. These taxes are collected by the County and remitted to the City on or before July
7 and December 2 of the same year. Delinquent collections for November and December are
received the following January. The City has no ability to enforce payment of property taxes by
property owners. The County possesses this authority.
25
CITY OF BROOKLYN CENTER, MI N 0) A t' r 1,
NOTES TO FINANCIAL STATEME
December 31, 2004
GOVERNMENTIWIDE FINANCIAL STATEMENTS,
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS,
The City recognizes property tax revenue when it becomes both measurable and available to
finance expenditures of the current period. In practice, current and delinquent taxes and State
credits received by the City in July, December and January are recognized as revenue for the
current year. Taxes collected by the County by December 31 (remitted to the City the following
January) and taxes and credits not received at the year end are classified as delinquent and due
from County taxes receivable. The portions of delinquent taxes not collected by the City in
January are fully offset by deferred revenue because they are not available to finance current
expenditures.
H. MARKET VALUE HOMESTEAD CREDIT
Property taxes on residential agricultural homestead property (as defined by State Statutes) are
partially reduced by market value homestead credit (MVHC). This credit is paid to the City by the
State in lieu of taxes levied against homestead property. The State remits this credit through
installments each year. The credit is recognized as revenue by the City at the time of collection.
The City has recorded this with property tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond
issue. Collection of annual installments (including interest) is handled by the County Auditor in
the same manner as property taxes. Property owners are allowed to (and often do) prepay
assessments in full without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City
Council or court action. If special assessments are allowed to go delinquent, the property is
subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the
County's costs of administering all tax forfeit properties. Pursuant to State Statutes, a property
shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted
by the City Council. Uncollectible special assessments are not material and have not been
reported.
26
CITY OF BROOKLYN CENTER MI N O1fA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments that are collected by the County by December 31 (remitted to the City the following
January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funding are completely
offset by deferred revenues.
J. INVENTORIES
GOVERNMENTAL FUNDS
The primary government does not maintain material amounts of inventory within the other
governmental funds. Inventories of governmental funds are recorded as expenditures when
consumed rather than when purchased.
PROPRIETARY FUNDS
Inventories in the proprietary funds are valued at cost, using the weighted average method in the
Municipal Liquor Fund and the first in/first -out (FIFO) method in the other proprietary funds. The
costs of governmental fund type supplies are recorded as expenditures when purchased.
K. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government -wide and fund financial statements.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-
type activities columns in the government -wide financial statements. Capital assets are defined by
the government as assets with an initial, individual cost of more than $5,000 (amount not rounded)
and an estimated useful life in excess of one year. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business -type activities is
included as part of the capitalized value of the assets constructed. For the year ended December
31, 2004, no interest was capitalized in connection with construction in progress.
27
C ITY OF BROOKLYN CENTER MI E A
C r
1
NOTES TO FINANCIAL STATEMEN
December 31, 2004
Property, plant and equipment of the primary government, as well as the component units, is
depreciated using the straight line method over the following estimated useful lives:
Paved streets 25 years
Water and sewer mains and lines 25 years
Buildings and structures 25 years
Water wells and storage tanks 25 years
Sewer lift stations 25 years
Street lights and traffic lights 15 years
Machinery and equipment 5 15 years
Departmental equipment 5 years
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay is accrued in the internal service fund financial statements. A liability
for these amounts is reported in governmental funds only if they have matured, for example, as a
result of employee resignations and retirements. In accordance with the provisions of Statement of
Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is
recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is
recognized for that portion of accumulating sick leave benefits that is vested as severance pay.
N. LONG -TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial
statements, long -term debt and other long -term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts, as well as issuance costs, are immaterial and are
expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources. Premiums received on debt issuances are reported as other
financing sources while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
O. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for
amounts not appropriable for expenditure or legally segregated for a specific future use.
Designated fund balances represent tentative plans for future use of financial resources.
28
CITY OF BROOKLYN CENTER, MI QJA 1
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures /expenses in the
reimbursing fund and as reductions of expenditures /expenses in the fund that is reimbursed.
Interfund loans are reported as an interfund loan receivable or payable which offsets the movement
of cash between funds. All other interfund transactions are reported as transfers.
Q. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting
principles (GAAP) requires management to make estimates that affect amounts reported in the
financial statements during the reporting period. Actual results could differ from such estimates.
R. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL
STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL
FUND BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET
ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance total
governmental funds and net assets governmental activities as reported in the government-
wide statement of net assets. One element of that reconciliation explains that "long -term
liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds." The details of this $31,999,585 difference are as
follows:
Bonds payable $31,593,101
Accrued interest payable 406,484
Net adjustment to reduce fund balance total
governmental funds to arrive at net assets
governmental activities $31,999,585
29
I J
CITY OF BROOKLYN CENTER, M NE YA
NOTES TO FINANCIAL STATEMEN
December 31, 2004
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL,
FUND STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND.
BALANCES AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES,
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances total governmental funds
and changes in net assets ofgovernmental activities as reported in the government -wide
statement of activities. One element of that reconciliation explains that "Governmental funds
report capital outlays as expenditures. However, in the statement of activities the cost of those
assets is allocated over their estimated useful lives and reported as depreciation expense."
The details of this $2,535,384 difference are as follows:
Capital outlay $3,900,133
Depreciation expense (1,364,749)
Net adjustment to increase net changes in fund
balances total governmental funds to arrive at
changes in net assets of governmental activities $2,535,384
Another element of that reconciliation states that "Revenues in the Statement of Activities that
do not provide current financial resources are not reported as revenues in the funds." The
details of this $367,927 difference are as follows:
General property taxes deferred revenue:
At December 31, 2003 ($391,585)
At December 31, 2004 580,140
Tax increment taxes deferred revenue:
At December 31, 2003 (288,475)
At December 31, 2004 740,587
Special assessments deferred revenue:
At December 31, 2003 (3,491,475)
At December 31, 2004 3,218,735
Other deferred revenues:
At December 31, 2003 (36,431)
At December 31, 2004 36,431
Net adjustments to increase net changes in fund balances
total governmental funds to arrive at changes in net
assets of governmental activities $367,927
Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of
30
f 1
CITY OF BROOKLYN CENTER,�
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
principal of the long -term debt consumes the current financial resources of governmental
funds." Neither transaction, however, has any effect on net assets. The details of this
($14,663,101) difference are as follows:
Debt issued or incurred:
Issuance of general improvement bonds ($18,183,101)
Principal repayments:
General obligation debt 740,000
General improvement bonds 1,005,000
Tax increment bonds 1,775,000
Net adjustment to decrease net changes in
fund balances total governmental funds to
arrive at changes in net assets of
governmental activities ($14,663,101)
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council. All such depositories are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral.
The market value of collateral pledged must equal 110% of the deposits not covered by insurance or
bonds.
Authorized collateral includes the legal investments described below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that
securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution
other than that furnishing the collateral.
31
l am
CITY OF BROOKLYN CENTER, M N 'rA
NOTES TO FINANCIAL STATEME
December 31, 2004
Balances at December 31, 2004 are as follows:
Carrying Bank
Amount Balance
1) Insured or collateralized by securities held by the City
or its agent in the City's name. 4,122,475 4,318,473
2) Collateralized with securities held by the pledging
institution trust department in the City's name.
3) Uncollateralized or collateralized with securities not in
the City's name.
Totals 4,122,475 4,318,473
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities or organizations created by an act of congress, excluding mortgage- backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax exempt
securities, or repurchase or reverse repurchase agreements.
c) General obligations of the State of Minnesota or any of its municipalities.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker dealers;
or, a bank qualified as a depositor.
32
CITY OF BROOKLYN CENTER, MI N�Q A
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Balances at December 31, 2004:
Carrying/Fair
Custodial Credit Risk Category Value
Securities Type 1 2 3 Amount
Federal agencies 4,444,903 4,444,903
Totals 4,444,903 4,444,903
114
Investment pools 47,114,515
515
Deposits 4,122,475
Total deposits and investments 55,681,893
Petty cash and change 7,175
The City's investments are categorized above to give an indication of the level of custodial credit risk
assumed at year end. Category 1 includes investments that are insured or registered or for which the
securities are held by the City or its agent in the City's name. Category 2 includes uninsured and
unregistered investments for which the securities are held by the counterparty's trust department or
agent in the City's name. Category 3 includes uninsured and unregistered investments for which the
securities are held by the counterparty or by its trust department or agent but not in the City's name.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2004 are as
follows:
Maior Funds
Earle TIF Special
Brown TIF District Assessment Infrastructure Water Sanitary Storm Nonmajor
General District No.3 Bonds Construction Utility Sewer Drainage Funds Total
Special assessments receivable S S $2,173,016 $298,020 $242,615 $2,577 $3,616 S $2,719,844
Delinquent property taxes 10,491 10,491
Delinquent tax increment 97,499 97,499
Loan receivable 105.074 1,443,069 1.548,143
$105074 $97,499 $2,177016 $298,020 $242,615 $2,577 $3,616 $1,453,560 $4,375,977
33
f� d
CITY OF BROOKLYN CENTER, MI NE 'pA J f r
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not year, the various components yet earned. At the end of
the current fiscal Y onents of deferred revenue and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned
Delinquent property taxes receivable (General Fund) 467,754
Delinquent property taxes receivable (Special Assessment Bonds) 34,814
Delinquent property taxes receivable (Nonmajor Funds) 31,435
Delinquent tax increment collections (Earl Brown TIF District) 97,499
Delinquent tax increment collections (TIF District #3) 643,088
Special assessments not yet due (Special Assessment Bonds) 2,402,346
Special assessments not yet due (Special Assessment Construction) 816,413
Grant drawdowns prior to meeting all eligibility requirements (Nonmajor Funds) 8,434
Fees received but unearned (General Fund) 6,132
Fees received but unearned (Special Assessment Construction) 36,360
Total deferred /unearned revenue for governmental funds $4,535,841 8,434
Note 4 CAPITAL ASSETS
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government 83,102
Public safety 398,684
Public works 628,330
Parks and recreation 254,634
Capital assets held by the governments internal service
funds are charged to the various functions based on their
usage of the assets 523,346
Total depreciation expense governmental activities 1,888,096
Business -type activities:
Municipal liquor fund 35,624
Golf course fund 27,971
Earle Brown Heritage Center Fund 568,643
Water utility fund 588,767
Sanitary sewer fund 469,424
Storm drainage fund 527,619
Total depreciation expense business -type activities 2,218,048
34
t
CITY OF BROOKLYN CENTER, MIZN OtfA�
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
CONSTRUCTION COMMITMENTS
At December 31, 2004, the City had construction project contracts in progress. The commitments
related to remaining contract balances are summarized as follows:
Contract Remaining
Project Project Amount Commitment
2004 -01 Northport Streets 2,673,332 83,847
2004 -16 Grandview Park 183,884 9,615
2,857,216 93,462
Note 5 OPERATING LEASES
The City leases space for its municipal liquor stores. The leases are both ten -year leases and began in 2000
and 2003. Both leases have options for a ten -year extension. The leases provide for a minimum monthly
base rent payment, plus a pro -rata share of common area expenses. In addition, they requires additional
lease payments if agreed -upon revenue thresholds are attained. These leases may be cancelled at the City's
option if the City ceases liquor operations. Total rental expense under the lease agreements for the years
ended December 31, 2004 and 2003 was $288,444 and $142,730, respectively. Future minimum rent
payments under the current agreements are as follows:
Total
Year Minimum
Ending Rents
2005 188,897
2006 193,530
2007 193,530
2008 193,530
2009 193,530
2010 136,158
2011 93,360
2012 93,360
2013 93,360
$1,379,255
Note 6 LONG -TERM DEBT
The City issues general obligation bonds and equipment certificates to provide funds for the acquisition and
construction of major capital facilities. The reporting entity's long -term debt is segregated between the
amounts to be repaid from governmental activities and amounts to be repaid from business -type activities.
35
f l� J f I
CITY OF BROOKLYN CENTER, MI NE AA
NOTES TO FINANCIAL STATEMEN
December 31, 2004
GOVERNMENTAL ACTIVITIES
As of December 31, 2004, the long -term debt of the financial reporting entity consisted of the
following:
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/04
General Obligation Bonds:
Refunding State -Aid Street Bonds 3.55% 4.00% 12/1/1998 4/1/2006 S 1,585,000 S 575,000
Police and Fire Building Bonds 4.10 0 /.4.90% 12/1/1997 2/1/2013 7,900,000 5,405,000
Police and Fire Building Refunding Bonds 2.00% -3.35% 1/1/2004 2/1/2013 5,045,000 5,045,000
Total General Obligation Bonds 14,530,000 11,025,000
G.O. Tax Increment Bonds:
Taxable Tax Increment Bonds of 1995 6.00 1 /66.75% 11/1/1995 2/1/2011 4,560,000 2,730,000
Taxable Tax Increment Refunding Bonds of 2004 2.25 %4.40% 1/1/2004 2/1/2011 2,470,000 2,470,000
Taxable Tax Increment Bonds of 2004 4.75 12/1/2004 2/l/2020 17,245,000 17,245,000
Total Tax Increment Bonds 24,275,000 22,445,000
G.O. Improvement Bonds:
1994 Street Improvement Bonds 4.10 -5.50% 811/1994 2/1/2005 835,000 95,000
1995 Street Improvement Bonds 4.00 11/1/1995 2/1/2006 780,000 175,000
1996 Street Improvement Bonds 4.20°/x5.10% 11/1/1996 2/1/2007 1,440,000 470,000
1997 Street Improvement Bonds 4.00 0 /".70% 12/1/1997 2/112008 1,075,000 405,000
1998 Street Improvement Bonds 3.40% 4.20% 12/1/1998 2/1/2009 1,085,000 505,000
1999 Street Improvement Bonds 4.10 4 /65.00% 12/1/1999 2/1/2010 1,585,000 930,000
000 495,000
2000 Street Improvement Bonds 4.30%4.90 12/112000 2/1/2011 735,
P
00 e Improvement 2.60°/x4.40% 12/112001 2/1/2012 730,000 565,000
2 I Street mp ovement Bonds
2003 Street Improvement Bonds 1.45 %4.00% 1/112003 2/1/2013 1,205,000 1,060,000
2004 Street Improvement Bonds 2.10 9 /6 12/1/2004 2/1/2015 1,010,000 1,010,000
Total G.O. Improvement Bonds 10,480,000 5,710,000
Total bonded indebtedness 49,285,000 39,180,000
Compensated absences payable
Total City indebtedness governmental
activities S 49,285,000 40,037,305
BUSINESS -TYPE ACTIVITIES
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/04
G.O. Revenue Bonds:
1994 Storm Sewer Revenue Bonds 4.20 8/1/1994 2/1/2005 1,830,000 2X000
Total business -type activities 1,830,000 S 230,000
36
CITY OF BROOKLYN CENTER A
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Annual debt service requirements to maturity for long -term debt are as follows:
General Obligation Bonds Tax Increment Bonds G.O. Improvement Bonds
Year Ending Governmental Activities Governmental Activities Governmental Activities
December 31 Principal Interest Principal Interest Principal Interest
2005 5,685,000 403,302 3,140,000 806,494 990,000 198,661
2006 875,000 143,018 1,000,000 887,080 1,000,000 167,286
2007 590,000 124,690 1,050,000 847,236 900,000 129,316
2008 600,000 110,553 1,030,000 804,491 720,000 96,798
2009 610,000 93,903 1,095,000 759,214 615,000 70,407
2010 640,000 75,153 1,120,000 710,280 495,000 47,977
2011 640,000 55,633 1,165,000 658,155 340,000 31,111
2012 685,000 34,581 800,000 612,212 270,000 19,234
2013 700,000 11,725 1,240,000 563,762 200,000 10,309
2014 1,305,000 503,319 90,000 4,928
2015 1,380,000 439,550 90,000 1,643
2016 1,450,000 372,338
2017 1,540,000 299,400
2018 1,610,000 220,650
2019 1,720,000 136,325
2020 1,800,000 46,125
Total S 11,025,000 S 1,052,558 22,445,000 8,666,631 S 5,710,000 777,670
Storm Sewer Revenue Bonds
Year Ending Business -Type Activities
December 31 Principal Interest
2005 230,000 6,210
Total $230,000 $6,210
CHANGE IN LONG -TERM LIABILITIES
Long -term liability activity for the year ended December 31, 2004, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation bonds 6,720,000 5,045,000 (740,000) 11,025,000 5,685,000
Tax increment bonds 4,505,000 19,715,000 (1,775,000) 22,445,000 3,140,000
G.O. special assessment bonds 5,705,000 1,010,000 (1,005,000) 5,710,000 990,000
Total bonds payable 16,930,000 25,770,000 (3,520,000) 39,180,000 9,815,000
Compensated absences 7 93,227 637,234' 1563,156) 857 857;305
Total government activity
long -term liabilities $17,713,227 26,407,234 (4,083,156) 40,037,305 10,672,305
Business -type activities
Storm sewer revenue bonds 450,000 (220,000) 230,000 230,000
37
CITY OF BROOKLYN CENTER, MI NE
NOTES TO FINANCIAL STATEM SN y
December 31, 2004
For the governmental activities, loans payable are generally liquidated by the general fund.
Compensated absences are liquidated by the Internal Service Fund.
All long -term bonded indebtedness outstanding at December 31, 2004 is backed by the full faith and
i
lin
credit of the City, including improvement and revenue b and issues. Delinquent assessments receivable
at December 31, 2004 totaled $87,633.
Note 7 CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds to provide
assistance to private sector entities for the acquisition and construction of housing, industrial, and
commercial facilities deemed to be in the public interest. The bonds are secured by the property financed
and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the
bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue.
Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
As of December 31, 2004, there were six series of Housing Revenue or Industrial Revenue Bonds
outstanding, with an aggregate principal amount payable Several variable debt issues are also
outstanding.
38
CITY OF BROOKLYN CENTER, (!IA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 8 RESERVED/DESIGNATED FUND EOUITY
Fund balances and retained earnings in the various funds have been reserved or designated for the following
1 purposes:
Reserved Fund Equity
Fund balances:
Major funds:
General fund:
Prepaid items 1,504
Advances to other funds 105,074
Total general fund 106,578
Special Assessment Bonds:
Debt service 2,907,073
Nonmajor Funds:
Loan receivable 2,153,038
Debt service 1,259,229
Total nonmajor funds 3,412,267
Total governmental funds 6,425,918
Designated Fund Equity
Major funds:
General fund:
Working capital 6,862,871
TIF District #3:
Bonding covenants 19,565,759
Statutory housing obligation 2,196,681
Total governmental funds 28,625,311
39
�1
CITY OF BROOKLYN CENTER, MI NE 'iA
NOTES TO FINANCIAL STATEMEN
December 31, 2004
1
Note 9 INTERFUND RECEIVABLES/PAYABLES. LOANS AND TRANSFERS,
Individual fund interfund receivable and payable balances at December 31, 2003 are as follows: 1
Due from Due to
Fund Other Funds Other Funds
Major Funds:
TIF District #3 1,200,000
Earl Brown TIF District 1,200,000
Total 1,200,000 1,200,000
1
Advances to Advances From
Fund Other Funds Other Funds
Major Funds:
General Fund 105,074
Earl Brown TIF District 698,143
Golf Course 850,000
Non -Major Funds:
Capital Improvements Fund 850,000
Municipal State Aid for Construction Fund 593,069
1,548,143 1,548,143
The above balances are not expected to be eliminated within one year of December 31, 2004.
40
I
CITY OF BROOKLYN CENTER, M14 Q A
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Interf ind transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General Fund 1,465,464
Earle Brown TIF District 876,000
Infrastructure Construction 2,586,626
Nonmajor Funds 2,516,987 759,339
Total govenmental funds 5,103,613 3,100,803
Proprietary Funds:
Enterprise
Utility Funds 1,679,810
Earle Brown Heritage Center Capital 200,000
Municipal Liquor 125,000
Total proprietary funds 2,004,810
r Total 5,103,613 5,105,613
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund or to provide additional capital and infrastructure funding. In addition,
interfund transfers are occasionally authorized to allow redistribution of resources between funds for the
most efficient use of funds. In 2004, transfers from the General Fund to nonmajor governmental funds such
as the Street Reconstruction and Technology Funds allowed excess fund General Fund balance to be put to
use in ways that would reduce the need for taxes or other sources of public funds in the nonmajor funds.
41
I`
CITY OF BROOKLYN CENTER,
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 10 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City of Brooklyn Center's legal debt margin for 2004 and 2003 is
computed as follows:
December 31,
2004 2003
Market value (after fiscal disparities) $1,959,999,100 $1,840,115,300
Debt limit 2% of Market Value $39,199,982 $36,802,306
Amount of debt applicable to debt limit:
Total bonded debt $39,410,000 $17,380,000
Less: Special assessment bonds (5,710,000) (5,705,000)
State Aid Street Bonds (575,000) (845,000)
Tax Increment Bonds (22,445,000) (4,505,000)
Utility Revenue Bonds (230,000) (450,000)
Total debt applicable to debt limit $10,450,000 $5,875,000
Legal debt margin $28,749,982 $30,927,306
Note i l DEFICIT FUND BALANCES
A deficit fund balance exists at December 31, 2004 in the following fund:
Major Funds:
Unreserved deficit fund balance
Earle Brown Tax Increment Financing District: 1,858,494
Infrastructure Construction Fund 792,540
The deficits are being funded through internal borrowing and will be repaid from future surplus tax
increments and construction transfers form utility funds.
42
CITY OF BROOKLYN CENTER, M.1 SQTA l r'�
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 12 CONTINGENCIES. SUBSEOUENT EVENTS AND COMMITMENTS
A. ARBITRAGE REBATE
The Tax Reform Act of 1986 requires governmental entities to pay to the federal government
income earned on the proceeds from the issuance of debt in excess of interest costs, pending the
expenditure of the borrowed funds. This rebate of interest income (known as arbitrage) applies to
governmental debt issued after August 31, 1986.
The City issued greater than $5 million of bonds in the years 1991, 1992, 1997 and 2004 and
therefore is required to rebate excess investment income relating to these issues to the federal
government. The extent of the City's liability for arbitrage rebates on the remaining bond issues is
not determinable at this time. However, in the opinion of management, any such liability would be
immaterial.
B. LITIGATION
The City is subject to certain legal claims in the normal course of business. Management does not
expect the resolution of these claims will have a material impact on the City's financial condition
or results of operations.
C. FEDERAL AND STATE FUNDS
Amounts received or receivable from federal and state agencies are subject to agency audit and
adjustment. Any disallowed claims, including amounts already collected, may constitute a liability
of the applicable funds. The amount, if any, of funds which may be disallowed by the agencies
cannot be determined at this time although the City expects such amounts, if any, to be immaterial.
D. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability
of the applicable fund. Management has indicated that they are not aware of any instances of
noncompliance which would have a material effect on the financial statements.
E. PROGRAM COMPLIANCE
Federal program activities are subject to financial and compliance regulation. To the extent that
any expenditures are disallowed or other compliance features are not met, a liability to the
respective grantor agency could result.
43
f J
J
CITY OF BROOKLYN CENTER, M N OTA
r
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
F. GRANTS
The City approved grants in the amount of $500,000 to Boca Limited Partnership. The grant
requirements are not met. In turn the City requires repayment if certain requu� would be required to
the funds to Hennepin County.
return p
G.' SUBSEQUENT EVENTS
On February 1, 2005 the City paid off the principal amounts outstanding for the 1997 General
Obligation Police and Fire Building Bonds and closed the obligation. Finding for this transaction
was provided by the sale of the 2004 General Obligation Police and Fire Building Refunding
bonds and sinking fund monies.
On February 1, 2005 the City paid off the outstanding principal for the 1995 G.O. Tax Increment
Bonds and closed the obligation. Funding for this transaction was provided by the 2004 G.O. Tax
Increment Refunding Bonds.
H. CONTINGENT LIABILITY
The City entered into two limited tax increment notes with developers whereby the City shall pay
the developers the lesser of the scheduled payment or available tax increment. Whether a payment
will occur and if so, the amount of the payment(s) are uncertain since all payments are dependent
on the City receiving tax increment from the developer's project. As such, this liability has not
been recorded in the financial statements. A schedule of the notes outstanding at December 31,
2004 is as follows:
Amended Original 12/31/2004 Interest Maturity
Note Principal Balance Rate Date
Twin Lakes business Park 2 „424,199.00 2,350,725.51 8.00%
*No maturity date is set. Payments will continue until the principal is paid, or for 10 years, whichever comes first.
Note 13 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions and natural disasters for which the City carries commercial insurance policies. The
City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is
considered immaterial to the financial statements. I I
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three years.
44
CITY OF BROOKLYN CENTER, M1 lr! >OTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 14 POST EMPLOYMENT HEALTH CARE BENEFITS
The City has provided post employee health care benefits, as per the requirements of the City Council
resolution, for certain retirees and their dependents since 1986. Full time employees have the option of
retaining membership in the City's health insurance plan for which the City will pay the single person
premium until such time as the retiree is eligible for Medicare coverage or at age 65, whichever is sooner.
If the retiree desires to continue family coverage, the additional cost for family coverage shall be paid by
the retiree to the City. There are two methods whereby an employee can qualify under this program. First,
the employee, on the date of his/her retirement, must meet eligibility requirements for a full retirement
annuity under PERA (Note 15A) without reduction of benefits because of age, disability, or any other
reason for reduction. In addition, the employee must have been employed full time by the City for the last
ten consecutive years prior to the effective date of retirement. Additionally, employees who are retiring
after twenty-five years of consecutive service with the City and are eligible to receive a pension from PERA
shall have the option of retaining membership in the City's health insurance plan for which the employee
will pay the premium until such time as the retiree is eligible to receive a full- retirement annuity under
PERA or PERA police. At that time, the City will pay the single- person premium until such time as the
retiree is eligible for Medicare coverage or at age 65, whichever is sooner. Employees participate in this
program on a voluntary basis.
As of December 31, 2004, 12 employees currently participate in this program. The cost of City paid health
care premiums for the years ended December 31, 2004 and 2003 was $58,465 and $38,615, respectively.
Fund liabilities are paid on a pay -as- you -go basis with investment earnings of the Fund. The $1,548,581
recorded as a liability is not an actuarially determined amount, but the City's best estimate of the future
liability. The liability will remain unchanged until a thorough analysis of future liabilities is performed.
Note 15 DEFINED BENEFIT PENSION PLANS STATEWIDE
A. STATEWIDE- PERA
PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERT) and the Public Employees Police and Fire
Fund (PEPFF) which are cost sharing, multiple- employer retirement plans. These plans are established
and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All olice officers firefighters and peace officers who qualify for membership
P g P q fy P
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
45
CITY OF BROOKLYN CENTER, MI E
NOTES TO FINANCIAL STATEMEN
December 31, 2004
credited service. The defined retirement benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
The benefit provisions stated in the previous paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are
not receiving them yet are bound by the provisions in effect at the time they last terminated their
public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651)296 -7460 or 1 -800- 652 -9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions
to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 9.10% and 5.10 respectively, of their
annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered
salary. The City is required to contribute the following percentages of annual covered payroll:
11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members, and 9.30%
for PEPFF members. The City's contributions to the Public Employees Retirement Fund for the
years ending December 31, 2004, 2003 and 2002 were $223,220, $309,237 and $299,954,
respectively. The City's contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 2004, 2003 and 2002 were 272,860, $257,234 and $255,923, respectively.
The City's contributions were equal to the contractually required contributions for each year as set
by state statute.
B. PENSION PLAN BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
PLAN DESCRIPTION
The City contributes to the Brooklyn Center Fire Department Relief Association (the Association)
which is the administrator of a single employer retirement system to provide a retirement plan (the
Plan) to volunteer firefighters of the City who are members of the Association. The Association
issues a financial report which is available at City offices.
FUNDING POLICY AND ANNUAL PENSION COST
The City levies property taxes at the direction of and for the benefit of the Plan and passes through
state aids allocated to the Plan, all in accordance with enabling State statutes. The minimum tax
levy obligation is the financial contribution requirement for the year less anticipated state aids.
46
CITY OF BROOKLYN CENTER, M )QJA J
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
CONTRIBUTIONS
TRI S
Total contributions to the plan in 2002 were 118,508, of which $16,239 was levied by the City of
Brooklyn Center and $102,269 was from the State of Minnesota. The actuarially determined
contribution based on an actuarial valuation performed at January 1, 2003 was $111,821, which
represents funding for normal cost of $90,148 and administration of $21,673. Actual contributions
have continued at higher levels to allow for a transition to a defined contribution plan in the future.
These higher payments are irrevocable and do not affect the level of future City contributions.
They do not constitute an asset of the City.
The information below is the most recent data available.
Actuarial valuation date 1/1/2003
Actuarial cost method Entry age normal cost method
Amortization method Level dollar amount amortized
on a closed basis
Remaining amortization period 18 years
Actuarial assumptions:
Investment rate of return 7.5% compounded annually
Discount rate for obligations 7.50%
Projected salary increases Not applicable
Post retirement benefits None
Inflation rate Not applicable
THREE -YEAR TREND INFORMATION
Three Year Trend Information
Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
12/31/200 $96,617 100% $0
12/31/2001 118,508 100% 0
12/31/2002 118,508 100% 0
47
-J
CITY OF BROOKLYN CENTER, M E JA
NOTES TO FINANCIAL STATEMEN
December 31, 2004
SCHEDULE OF FUNDING PROGRESS
Assets in
Excess of
Actuarial Actuarial Actuarial (Unfunded)
Valuation Value of Accrued Accrued Funded
Date Assets Liability Liability Ratio
12/31/2000 $3,078,163 $2,457,135 $621,028 125.30
12/31/2001 2,925,352 2,608,543 316,809 112.10%
12/31/2002 2,540,231 2,478,786 61,445 102.50%
RELATED PARTY INVESTMENTS
As of December 31, 2004, the Association held no securities issued by the City or other related 1
parties.
Note 16 FUND CHANGES
No new funds were opened by the City of Brooklyn Center in 2004.
48
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION J r� 1 Statement 9
BUDGETARY COMPARISON SCHEDULE GENE L� f Page 1 of 6
For The Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Revenues: Original Final Amounts (Negative)
Taxes:
Property taxes and market value homestead credit 9,212,152 9,212,152 9,364,727 152,575
Penalties and interest 3,909 3,909
Lodging tax 660,000 660,000 656,859 (3,141)
Total taxes 9,872,152 9,872,152 10,025,495 153,343
Licenses and permits:
Liquor and beer 107,700 107,700 118,910 11,210
Building permits 350,000 350,000 280,270 (69,730)
Mechanical permits 55,000 55,000 69,137 14, 137
Sewer and water permits 1,000 1,000 2,187 1,187
Plumbing permits 35,000 35,000 33,569 (1,431)
Garbage licenses 3,100 3,100 3,080 (20)
Taxicab licenses 1,300 1,300
Mechanical licenses 6,000 6,000 5,984 (16)
Pawn shop licenses 12,000 12,000 3,000 (9,000)
Service station licenses 2,800 2,800 2,545 (255)
Vehicle dealer licenses 1,750 1,750 1,750
Bowling licenses 720 720 720
Cigarette licenses 3,000 3,000 3,938 938
Sign permits 3,000 3,000 2,572 (428)
Rental dwelling permits 71,000 71,000 93,042 22,042
Amusement licenses 2,000 2,000 1,450 (550)
Electrical Permits 40,000 40,000 40,107 107
ROW permits 7,481 7,481
Miscellaneous business license 4,000 4,000 7,035 3,035
Total licenses and permits 698,070 698,070 678,077 (19,993)
Intergovernmental:
State:
Local government aid 877,555 877,555 877,555
Police pension aid 250,000 250,000 254,525 4,525
PERA aid 34,365 34,365 34,365
Fireperson pension aid 92,500 92,500 158,991 66,491
Police training 16,400 16,400 15,040 (1,360)
E -911 phone service 15,000 15,000 20,618 5,618
Street maintenance aid
Low income housing aid
Miscellaneous grants 49,396 49,396 58,116 8,720
Total intergovernmental 1,335,216 1,335,216 1,419,210 83,994
Charges for services:
General government charges 30,670 30,670 36,324 5,654
Public safety charges 18,450 18,450 23,534 5,084
Recreation fees 273,150 273,150 314,415 41,265
Community Center fees 304,550 304,550 303,784 (766)
Total charges for services 626,820 626,820 678,057 51,237
49
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION r Statement 9
BUDGETARY COMPARISON SCHEDULE GENE L F j Page 2 of 6
For The Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues: (continued)
Fines and forfeits 225,000 225,000 254,980 29,980
Miscellaneous:
Investment earnings 150,000 150,000 97,825 (52,175)
Change in fair value of investments (11,617) (11,617)
Other 75,000 75,000 93,702 18,702
Total miscellaneous 225,000 225,000 179,910 (45,090)
Total revenues 12,982,258 12,982,258 13,235,729 253,471
Expenditures:
General government:
Mayor and council:
Current:
Personal services 50,989 50,989 46,633 4,356
Materials and supplies 100 100 20 80
Contractual services 77,319 77,319 80,900 (3,581)
Total mayor and council 128,408 128,408 127,553 855
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services 439,131 439,131 446,335 (7,204)
Materials and supplies 4,850 4,850 2,908 1,942
Contractual services 47,700 47,700 31,947 15,753
Total administrative office 491,681 491,681 481,190 10,491
Elections and voter registration:
Current:
Personal services 53,580 53,580 55,930 (2,350)
Materials and supplies 1,000 1,000 1,331 (331)
Contractual services
31,075 31,075 35,506 (4,431)
655 8 5 655 92 767 (7,112)
Total elections and voter registration 85
Assessor's office:
Current:
Personal services 221,275 221,275 211,409 9,866
550 2 1
550 324 1 226
Materials and supplies 2
Contractual services ervices 38,486 38,486 34,889 3,59
7
Total current 262,311 262,311 247,622 14,689
Capital outlay
Total assessor's office 262,311 262,311 247,622 14,689
Finance:
Current:
Personal services 429,382 429,382 403,530 25,852
Materials and supplies 1,550 1,550 1,540 10
Contractual services 10,950 10,950 22,220 (11,270)
Total current 441,882 441,882 427,290 14,592
Capital outlay
5(rbtal finance 441,882 441,882 427,290 14,592
TER MINNESOTA
CITY OF BROOKLYN CENTER,
REQUIRED SUPPLEMENTARY INFORMATION l� 1 Statement 9
BUDGETARY COMPARISON SCHEDULE GENE L� Page 3 of 6
For The Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
General government: (continued)
Legal:
Current:
Personal services 250,000 250,000 251,222 (1,222)
Government buildings:
Current:
Personal services 246,868 246,868 243,714 3,154
Materials and supplies 55,600 55,600 48,603 6,997
Contractual services 253,013 253,013 326,391 (73,378)
Total government buildings 555,481 555,481 618,708 (63,227)
Information Technology:
Current:
Personal services 155,478 155,478 156,112 (634)
Materials and supplies 16,000 16,000 16,039 (39)
Contractual services 163,013 163,013 167,094 (4,081)
1 Total current 334,491 334,491 339,245 (4,754)
Capital outlay
Total information technology 334,491 334,491 339,245 (4,754)
Total general government 2,549,909 2,549,909 2,585,597 (35,688)
Public safety:
Police protection:
Current:
Personal services 4,426,172 4,426,172 4,538,475 (112,303)
Materials and supplies 92,372 92,372 86,927 5,445
Contractual services 812,046 812,046 785,021 27,025
Total current 5,330,590 5,330,590 5,410,423 (79,833)
Capital outlay 800 800 800
Total police protection 5,331,390 5,331,390 5,410,423 (79,033)
Fire protection:
Current:
Personal services 428,350 428,350 453,377 (25,027)
Materials and supplies 48,000 48,000 56,660 (8,660)
Contractual services 195,867 195,867 209,094 (13,227)
Total current 672,217 672,217 719,131 (46,914)
Capital outlay 20,700 20,700 20,700
Total fire protection 692,917 692,917 719,131 (26,214)
51
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION j Statement 9
BUDGETARY COMPARISON SCHEDULE GENE F 1 f Page 4 of 6
For The Year Ended December 31, 2004 P 1 1
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Public safety: (continued)
Protective inspection:
Current:
Personal services 389,797 389,797 379,524 10,273
Materials and supplies 4,050 4,050 2,560 1,490
Contractual services 66,441 66,441 75,642 (9,201)
Total protective inspection 460,288 460,288 457,726 2,562
Emergency preparedness:
Current:
Personal services 50,903 50,903 46,810 4,093
Materials and supplies 2,400 2,400 931 1,469
Contractual services 9,760 9,760 7,233 2,527
Total emergency preparedness 63,063 63,063 54,974 8,089
Total public safety 6,547,658 6,547,658 6,642,254 (94,596)
f ty
Public works:
Engineering department:
Current:
Personal services 408,187 408,187 433,932 (25,745)
Materials and supplies 3,720 3,720 4,506 (786)
Contractual services 38,857 38,857 33,702 5,155
Total current 450,764 450,764 472,140 (21,376)
Capital outlay 6,000 6,000 6,000
Total engineering department 456,764 456,764 472,140 (15,376)
Street department:
Current:
Personal services 646,561 646,561 633,756 12,805
Materials and supplies 144,400 144,400 97,376 47,024
Contractual services 534,189 534,189 476,168 58,021
Total current 1,325,150 1,325,150 1,207,300 117,850
Capital outlay
Total street department 1,325,150 1,325,150 1,207,300 1.17,850
Total public works 1,781,914 1,781,914 1,679,440 102,474
Community services:
Social services:
Current:
5,700
Contractual services 73,024 73,024 67,324
52
MINNESOTA
CITY OF BROOKLYN CENTER,
REQUIRED SUPPLEMENTARY INFORMATION J t Statement 9
BUDGETARY COMPARISON SCHEDULE GENE L� Page 5 of 6
For The Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Parks and recreation:
Administration:
Current:
Personal services 438,905 438,905 429,357 9,548
Materials and supplies 11,000 11,000 5,991 5,009
Contractual services 51,650 51,650 53,451 (1,801)
Total current 501,555 501,555 488,799 12,756
Capital outlay
Total administration 501,555 501,555 488,799 12,756
Adult programs:
Current:
Personal services 111,163 111,163 53,329 57,834
Materials and supplies 10,300 10,300 14,659 (4,359)
Cost of good sold to public 20,333 20,333 21,953 (1,620)
Contractual services 20,623 20,623 89,201 (68,578)
Total adult programs 162,419 162,419 179,142 (16,723)
Teen programs
Current:
Personal services 3,434 3,434 1,795 1,639
Materials and supplies 700 700 571 129
Contractual services
Total teen programs 4,134 4,134 2,366 1,768
Youth programs:
Current:
Personal services 30,139 30,139 32,186 (2,047)
Materials and supplies 7,570 7,570 7,173 397
Contractual services 9,100 9,100 660 8,440
Total youth programs 46,809 46,809 40,019 6,790
General programs:
Current:
Personal services 12,268 12,268 10,201 2,067
Materials and supplies 75 75 65 10
Contractual services 4,500 4,500 8,684 (4,184)
Total general programs 16,843 16,843 18,950 (2,107)
Community center:
Current:
Personal services 378,169 378,169 374,236 3,933
Materials and supplies 17,750 17,750 12,853 4,897
Contractual services 51,800 51,800 66,644 (14,844)
Total current 447,719 447,719 453,733 (6,014)
Capital outlay
Total community center 447,719 447,719 453,733 (6,014)
53
CITY OF BROOKLYN CENTER, MINNESOTA i
REQUIRED SUPPLEMENTARY INFORMATION l i Statement 9
BUDGETARY COMPARISON SCHEDULE GENE L T Page 6 of 6
For The Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Parks and recreation: (continued)
Park maintenance:
Current:
Personal services 508,223 508,223 493,796 14,427
Materials and supplies 56,100 56,100 42,079 14,021
Contractual services 301,221 301,221 263,114 38,107
Total current 865,544 865,544 798,989 66,555
Capital outlay
Total park maintenance 865,544 865,544 798,989 66,555
Total parks and recreation 2,045,023 2,045,023 1,981,998 63,025
Economic development:
Convention bureau:
Current:
Personal services 330,000 330,000 311,698 18,302
Nondepartmental:
Expenditures not charged to departments:
Current:
Personal services 51,427 51,427 49,367 2,060
Materials and supplies 23,500 23,500 17,122 6,378
Contractual services 338,887 338,887 267,180 71,707
Total current 413,814 413,814 333,669 80,145
Capital outlay
Total nondepartmental 413,814 413,814 333,669 80,145
Total expenditures 13,741,342 13,741,342 13,601,980 139,362
Revenues over (under) expenditures (759,084) (759,084) (366,251) 392,833
Other financing sources (uses):
Transfers in administrative services reimbursed 784,084 784,084 784,084 I
Transfers to other funds (25,000) (25,000) (25,000)
Transfers of General Fund Equity (1,440,464) (1,440,464)
Total other financing sources (uses) 759,084 759,084 (681,380) (1,440,464)
Net increase decrease in fund balance (1,047,631) (1,047,631)
Fund balance January 1 8,017,080
Fund balance December 31 6,969,449
54
CITY OF BROOKLYN CENTER MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE EARL BR T RE NT DISTRICT
For the Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Property taxes 1,104,017 1,104,017 725,544 (378,473)
Interest earnings (net of market value adjustment) 7,982 7,982
Total revenue 1,104,017 1,104,017 733,526 (370,491)
Expenditures:
Services and other charges 25,000 25,000 30,652 (5,652)
Revenues over (under) expenditures 1,079,017 1,079,017 702,874 (376,143)
Other financing sources (uses):
Transfers out (1,492,750) (1,492,750) (876,000) 616,750
Net increase(decrease)in fund balance (413,733) (413,733) (173,126) 240,607
Fund balance January 1 (1,685,368)
t Fund balance December 31 (1,858,494)
i
55
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE -TAX �C�R�]E �r• 3
For the Year Ended December 31, 2004
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Property taxes 3,472,780 3,472,780 2,880,586 (592,194)
Interest 127,140 127,140
Total revenues 3,472,780 3,472,780 3,007,726 (465,054)
Expenditures:
Services and other charges 428,445 (428,445)
Interest
Total expenditures 428,445 (428,445)
Revenues over expenditures 3,472,780 3,472,780 2,579,281 (893,499)
Other financing sources (uses):
Bond Sale Proceeds 17,173,101 17,173,101
Transfers out (550,000) (550,000) 550,000
Net increase in fund balance 2,922,780 2,922,780 19,752,382 16,829,602
Fund balance January 1
6,119,290
Fund balance December 31 25,871,672
56
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2004
Note A LEGAL COMPLIANCE BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principals generally accepted
in the United States of America. The legal level of budgetary control is at the department level of the General
Fund. The following is a listing of General Fund departments whose expenditures exceed budgeted appropriations.
Final Over
Budget Actual Budget
Major Funds:
General Fund:
Elections and voter registration 85,665 92,767 (7,102)
Legal 250,000 251,122 (1,122)
Govrnment buildings 555,481 618,708 (63,227)
Information technology 334,491 339,245 (4,754)
Police protection 5,331,390 5,410,423 (79,033)
Fire protection 692,917 719,131 (26,214)
Engineering department 456,764 472,140 (15,376)
Adult recreation programs 162,419 179,142 (16,723)
General recreation programs 16,843 18,950 (2,107)
1 Community center 447,719 453,733 (6,014)
Spepcial Revenue Funds:
Earle Brown T.I.F. District 25,000 30,652 (5,652)
T.I.F. District 3 428,445 (428,445)
r
57
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 12
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS f r
r f
December 31, 2004 1
Total
Nonmajor
Special Debt Capital Governmental
Assets: Revenue Service Project Funds
Cash and investments 1,711,655 1,249,052 4,391,495 7,352,202
Receivables:
Accounts 8,470 166,267 174,737
Current Taxes 1,116 5,194 6,310
Delinquent taxes 31,435 46,137 77,572
Due from other funds
Due from other governments 58,392 58,392
Advances to other funds 1,443,069 1,443,069
Restricted assets:
Cash and investments 4,948,936 4,948,936
Total assets 1,811,068 6,249,319 6,000,831 14,061,218
Liabilities and Fund Balance
Liabilities:
A ccounts payable
30,467 65,951 96,418
Due to other funds
Due to other governments
Accrued salaries and wages 3,731 3,731
Deferred revenue 39,869 46,137 86,006
Total liabilities 74,067 46,137 65,951 186,155
Fund balance:
Reserved 6,203,182 1,443,069 7,646,251
Unreserved:
Designated 4,491,811 4,491,811
Undesignated 1,737,001 1,737,001
Total fund balance 1,737,001 6,203,182 5,934,880 13,875,063 t
Total liabilities and fund balance 1,811,068 6,249,319 6,000,831 14,061,218
58
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPEN IT RES AND 1 Statement 13
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
Total Nonmajor
Special Debt Capital Governmental
Revenues: Revenue Service Project Funds
Taxes and special assessments 451,453 768,774 1,220,227
Intergovernmental 343,103 800,710 1,143,813
Charges for services 11,428 11,428
Investment earnings (net of market value adjustment) 24,342 52,987 39,633 116,962
Miscellaneous 356,207 761,544 1,117,751
Total revenues 1,186,533 821,761 1,601,887 3,610,181
Expenditures:
Current:
General government 8,444 8,444
Public safety 423,845 423,845
Public works 6,928 6,928
Economic development 509,639 509,639
Capital outlay:
General government 137,456 137,456
Public works 487,765 487,765
Debt service:
Principal retirement 2,245,000 2,245,000
Interest 585,145 585,145
Paying agent fees 47,399 47,399
Total expenditures 933,484 2,877,544 640,593 4,451,621
Revenues over under expenditures 253,049 (2,055,783) 961,294 (841,440)
r Other financing sources (uses):
Purchase of land (293,145) (293,145)
Bonds issued 5,045,000 5,045,000
Discount on debt issued (6,439) (6,439)
Transfers in 223,523 876,000 1,415,464 2,514,987
Transfers out (223,523) (533,816) (757,339)
Total other financing sources (uses) (293,145) 5,914,561 881,648 6,503,064
Net increase (decrease) in fund balance (40,096) 3,858,778 1,842,942 5,661,624
Fund balance January 1 1,777,097 2,344,404 4,091,938 8,213,439
Fund balance December 31 1,737,001 6,203,182 5,934,880 13,875,063
59
CITY OF BROOKLYN CENTER
SUBCOMBINING BALANCE SHEET Statement 14
NONMAJOR SPECIAL REVENUE FUNDS r' y) T
December 31, 2004
Total
Economic Tax Police City Nonmajor
Development Increment Drug Initiatives Special
Authority District Forfeiture Grant Revenue
Fund No.4 Fund Fund Funds
Assets
Cash and investments 1,462,866 80,123 45,465 123,201 1,711,655
Current Taxes Receivable 1,116 1,116
Accounts receivable 8,098 372 8,470
Delinquent taxes receivable 31,435 31,435
Due from other governments 26,855 473 31,064 58,392
Total assets 1,522,272 88,221 45,938 154,637 1,811,068
Liabilities and Fund Balance
Liabilities:
Accounts payable 215 40 21,230 8,982 30,467
Due to other governments
Accrued salaries payable 2,494 1,237 3,731
Deferred revenue 31,435 8,434 39,869
Total liabilities 34,144 40 21,230 18,653 74,067
Fund balance:
Unreserved 1,488,128 88,181 24,708 135,984 1,737,001
Total liabilities and fund balance 1,522,272 88,221 45,938 154,637 1,811,068
60
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61
CITY OF BROOKLYN CENTER
SUBCOMBINING STATEMENT OF REVENUES, E' DITURES f�
AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2004
Housing
and Economic
Redevelopment Development
Authority Authority
Fund Fund
Revenues:
Property taxes 223,523
Intergovernmental 54,273
Charges for services
Investment earnings 19,721
Miscellaneous 257,986
Total revenues 223,523 331,980
Expenditures:
Personal services 118,632 V
Supplies 475
Services and other charges 143,888
Total expenditures 262,995
Revenues over (under) expenditures 223,523 68,985
Other financing sources (uses):
Purchase of land (293,145)
Transfers in 223,523
Transfers out (223,523)
Total other financing sources (uses) (223,523) (69,622)
Net increase in fund balance (637)
Fund balance January 1 1,488,766
Fund balance December 31 1,488,129
62
Statement 15
1
Total
Tax Police Community City Nonmajor
Increment Drug Development Initiatives Special
District Forfeiture Block Grant Revenue
No.4 Fund Grant Fund Funds
227,930 451,453
288,830 343,103
11,428 11,428
130 1,022 3,469 24,342
26,470 71,751 356,207
60
228,0 27,492 375,478 1,1 86,533
387 108,268 227,287
21,578 190,849 212,902
246,257 55,374 47,776 493,295
246,644 76,952 346,893 933,484
(18,584) (49,460) 28,585 253,049
(293,145)
223,523
(223,523)
(293,145)
1 (18,584) (49,460) 28,585 (40,096)
106,765 74,168 107,398 1,777,097
88,181 24 135,983 1
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CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND HOUSING AND REDE PMENT AUT�IOIj ITY FUND Statement 16
SCHEDULE OF REVENUES, EXPENDITURES AN I f
CHANGES IN FUND BALANCE BUDGET AND f
For The Year Ended December 31, 2004
Budgeted Amounts Actual
Original Final Amounts
Revenues:
Property taxes 225,423 225,423 223,523
Expenditures
Revenues over expenditures 225,423 225,423 223,523
Other fmancing sources (uses):
(225,423) (225,423) (223,523)
Transfers out
Net increase in fund balance
Fund balance January 1
Fund balance December 31
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1
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND ECONOMIC DEVELO T t AYTI�ORIW FUND Statement 17
SCHEDULE OF REVENUES, EXPENDITURES AN
CHANGES IN FUND BALANCE BUDGET AN Ab
For The Year Ended December 31, 2004
Budgeted Amounts Actual
Original Final Amounts
Revenues:
Property taxes
Intergovernmental 54,273
Investment earnings (net of market value adjustment) 19,721
Miscellaneous 12,000 12,000 257,986
Total revenues 12,000 12,000 331,980
Expenditures:
Current:
Personal services 166,817 166,817 118,632
Supplies 1,550 1,550 475
Services and other charges 69,056 69,056 143,888
Debt service:
Interest
Total expenditures 237,423 237,423 262,995
Revenues over (under) expenditures (225,423) (225,423) 68,985
1 Other financing sources (uses):
Purchase of land (293,145)
Transfers in 225,423 225,423 223,523
Total other financing sources (uses) 225,423 225,423 (69,622)
Net increase (decrease) in fund balance (637)
Fund balance January 1 1,488,766
Fund balance December 31 1,488,129
i 65
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND TAX INCREMENT DI T NO.4 FUND'' 1 Statement 18
SCHEDULE OF REVENUES, EXPENDITURES AN J� r
CHANGES IN FUND BALANCE BUDGET AND C ALt
For The Year Ended December 31, 2004
i
Budgeted Amounts Actual
Original Final Amounts
Revenues:
Property taxes 344,503 344,503 227,930
130
Interest earnings (net of market value adjustment)
344,503 344,503 228,060
Total revenues
Expenditures:
Current:
Personal services 387
Services and other charges 10,000 10,000 14,744
Debt service:
Principal 335,890 335,890 231,513
Interest
Total expenditures 345,890 345,890 246,644
Revenues over expenditures (1,387) (1,387) (18,584)
Fund balance January 1 106,765
Fund balance December 31 88,181
66
1 CITY OF BROOKLYN CENTER MINNESOTA
SPECIAL REVENUE FUND POLICE DRUG FORMT FUND t Statement 19
SCHEDULE OF REVENUES, EXPENDITURES ANd J K
CHANGES IN FUND BALANCE BUDGET AN Ad, For The Year Ended December 31, 2004
i
1 Budgeted Amounts Actual
Original Final Amounts
Revenues:
1 Forfeited drug money 25,000 25,000 26,470
Investment earnings (net of market value adjustment) 1,022
Total revenues 25,000 25,000 27,492
Expenditures:
Current:
Supplies 25,000 25,000 21,578
Services and other charges 14,904
Capital equipment 40,470
1 Total expenditures 25,000 25,000 76,952
Revenues over expenditures (49,460)
Fund balance January 1 74,168
Fund balance December 31 24,708
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CITY OF BROOKLYN CENTER, MINNESOTA 1
SPECIAL REVENUE FUND COMMUNITY DEVEfPTWNT BLOCK gTtANT FUND Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AN l j�� r J
CHANGES IN FUND BALANCE BUDGET AND AL
For The Year Ended December 31, 2004
1
Budgeted Amounts Actual 1
Original Final Amounts
Revenues:
Intergovernmental:
Federal grants 244,811 244,811
Expenditures: 1
Current:
Services and other charges 244,811 244,811
Revenues over expenditures 1
Fund balance January 1
Fund balance December 31
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1
1
1
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68
CITY OF BROOKLYN CENTER MINNESOTA
SPECIAL REVENUE FUND -CITY INITIATIVES G N FUND
I Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AN �f�
CHANGES IN FUND BALANCE BUDGET A AI,.
For The Year Ended December 31, 2004
Budgeted Amounts Actual
Original Final Amounts
Revenues:
Intergovernmental 209,000 209,000 288,830
Charges for services 9,825 9,825 11,428
Investment earnings 3,469
Miscellaneous 29,028 29,028 71,751
Total revenues 247,853 247,853 375,478
Expenditures:
Current:
Personal services 28,686 28,686 108,268
Supplies 134,370 134,370 190,849
Services and other charges 20,048 20,048 47,776
Total expenditures 183,104 183,104 346,893
Net increase (decrease) in fund balance 64,749 64,749 28,585
Fund balance January 1 107,398
Fund balance December 31 135,983
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CITY OF BROOKLYN CENTER, MINNESOTA
Statement 22
SUBCO
MBINING BALANCE SHEET 1
NONMAJOR DEBT SERVICE FUNDS J� F
December 31, 2004
Total
Nonmajor
General Tax Debt
Obligation Increment Service
Bonds Bonds Funds
Assets
Cash and investments 944,464 304,588 1,249,052
Current taxes receivable 5,194 5,194
Delinquent taxes receivable 46,137 46,137
Restricted assets:
Cash and investments 4,948,936 4,948,936
Total assets 5,944,731 304,588 6,249,319
Liabilities and Fund Balance
Liabilities:
Accounts payable
Deferred revenue 46,137 46,137
Total liabilities 46,137 46,137
Fund balance:
Reserved:
Reserved for debt service 5,898,594 304,588 6,203,182
Total liabilities and fund balance 5,944,731 304,588 6,249,319
70
CITY OF BROOKLYN CENTER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES PE DIT RES AD4`d 1 Statement 23
CHANGES IN FUND BALANCE f
NONMAJOR DEBT SERVICE FUNDS
1
For The Year Ended December 31, 2004
Total
Nonmajor
General Tax Debt
Obligation Increment Service
Bonds Bonds Funds
Revenues:
Property Tax 768,774 768,774
Investment earnings (net of market value adjustment) 46,962 6,025 52,987
Total revenues 815,736 6,025 821,761
Expenditures:
Principal 470,000 1,775,000 2,245,000
Interest 347,842 237,303 585,145
Fiscal agent fees 45,570 1,829 47,399
Total expenditures 863,412 2,014,132 2,877,544
Revenues over (under) expenditures (47,676) (2,008,107) (2,055,783)
Other financing ources
g uses):
Bonds issued 5,045,000 5,045,000
Discount on debt issued (6,439) (6,439)
Transfers in 876,000 876,000
Total other financing sources (uses) 5,038,561 876,000 5,914,561
Net increase (decrease) in fund balance 4,990,885 (1,132,107) 3,858,778
Fund balance January 1 907,709 1,436,695 2,344,404
Fund balance December 31 5,898,594 304,588 6,203,182
71
BROOKLYN CENTER, MINNESOTA
CITY OF B R,
SUBCOMBINING BALANCE SHEET f
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2004 .J
Capital
Reserve Capital
Emergency Improvements
Assets Fund Fund
Cash and investments 1,346,261 951,483
Accounts receivable
Due from other funds
Advance to other funds 850,000
1,346,261 1,801,483
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Total liabilities
Fund balance:
Reserved:
Advances to other funds 850,000
Unreserved:
Undesignated 1,346,261 951,483
Total fund balance 1,346,261 1,801,483
Total liabilities and fund balance 1,346,261 1,801,483
72
J 1 Statement 24
Municipal Earle Brown Total
State Aid Heritage Nonmajor
for Center Street Capital
Construction Improvements Reconstruction Technology Projects
Fund Fund Fund Fund Funds
5,304 187,399 1,360,763 540,285 4,391,495
165,128 1,139 166,267
593,069 1,443,069
598,373 187,399 1,525,891 541,424 6,000,831
65,951 65,951
65,951 65,951
593,069 1,443,069
5,304 121,448 1,525,891 541,424 4,491,811
598,373 121,448 1,525,891 541,424 5,934,880
598,373 187,399 1,525,891 541,424 6,000,831
73
CITY OF BROOKLYN CENTER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, E50YENPITURES ANI;F'
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2004
Capital
Reserve Capital
Emergency Improvements
Fund Fund
Revenues:
Intergovernmental 106,200
Investment earnings 9,688 9,336
Miscellaneous 122,910
Total revenues 9,688 238,446
Expenditures:
Services and other charges 6,928
Capital outlay 487,765
Total expenditures 494,693
Revenue over (under) expenditures 9,688 (256,247)
Other financing sources (uses):
Transfers in/(out) 300,000
Net increase (decrease) in fund balance 9,688 43,753
Fund balance January 1 1,336,573 1,757,730
Fund balance December 31 1,346,261 1,801,483
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r 1 Statement 25
Municipal Earle Brown Total
State Aid Heritage Nonmajor
for Center Street Capital
Construction Improvements Reconstruction Technology Projects
Fund Fund Fund Fund Funds
694,510 800,710
3,543 2,741 9,457 4,868 39,633
3,555 612,079 23,000 761,544
701,608 2,741 621,536 27,868 1,601,887
8,444 15,372
89,456 48,000 625,221
89,456 56,444 640,593
701,608 (86,715) 621,536 (28,576) 961,294
(533,816) 200,000 620,464 295,000 881,648
167,792 113,285 1,242,000 266,424 1,842,942
430,581 8,163 283,891 275,000 4,091,938
598,373 121,448 1,525,891 541,424 5,934,880
75
CITY OF BROOKLYN CENTER, MINNESOTA
SUBCOMBINING STATEMENT OF NET ASSETS Statement 26
NONMAJOR ENTERPRISE FUNDS
December 31, 2004
Total
Nonmajor
Recycling and Street Light Enterprise
Refuse Fund Utility Fund Funds
Assets:
Cash and cash equivalents 36,427 81,530 117,957
Accounts receivable net 50,767 47,243 98,010
Total assets 87,194 128,773 215,967
Liabilities:
Accounts payable 750 11,985 12,735
Net assets:
Unreserved 86,444 116,788 203,232
Total net assets 86,444 116,788 203,232
76
CITY OF BROOKLYN CENTER MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, E E ES f l� l Statement 27
AND CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
For The Year Ended December 31, 2004
Total
Nonmajor
Recycling and Street Light Enterprise
Refuse Fund Utility Fund Funds
i Operating revenues:
Sales and user fees 214,347 208,121 422,468
Operating expenses:
Supplies 77 77
Other services 221,443 11,618 233,061
Insurance 1,378 1,279 2,657
Utilities 152,677 152,677
Total operating expenses 222,821 165,651 388,472
Operating income (loss) (8,474) 42,470 33,996
Nonoperating revenues (expenses):
Investment earnings 981 1,974 2,955
Transfer to capital project funds (51,000) (51,000)
Total nonoperating revenues (expenses) 981 (49,026) (48,045)
Change in net assets (7,493) (6,556) (14,049)
Net assets January 1 93,937 123,344 217,281
Net assets December 31 86,444 116,788 203,232
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CITY OF BROOKLYN CENTER, MINNESOTA 1
SUBCOMBINING STATEMENT OF CASH FLOWS/—) lJ Statement 28
NONMAJOR ENTERPRISE FUNDS r
For The Year Ended December 31, 2004��
Total
Nonmajor
Recycling and Street Light Enterprise
Refuse Fund Utility Fund Funds
Cash flows from operating activities:
Receipts from customers 211,111 205,036 416,147
Payments to suppliers (222,985) (153,823) (376,808)
Miscellaneous revenue (136) (274) (410)
Net cash flows from operating activities (12,010) 50,939 38,929
Cash flows from non capital financing activities 1
Transfers out (51,000) (51,000)
Cash flows from investing activities:
Interest on investments 1,117 2,248 3,365
Net increase in cash and cash equivalents (10,893) 2,187 (8,706)
Cash and cash equivalents January 1 47,320 79,343 126,663
Cash and cash equivalents December 31 36,427 81,530 117,957 1
Noncash items:
Change in fair value of investments (136) (274) (410)
Capital contribution
Reconciliation of operating income to net cash provided (used)
by operating activities:
Operating income (loss) (8,474) 42,470 33,996
Adjustments to reconcile operating income (loss) to net cash provided
by (used for) operating activities:
Changes in assets and liabilities:
Decrease (increase) in receivables (3,236) (3,085) (6,321) 1
Increase (decrease) in payables (164) 11,828 11,664
Other nonoperating income (136) (274) (410)
Net cash flows from operating activities (12,010) 50,939 38,929 1
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CITY OF BROOKLYN CENTER, MINNESOTA
SUBCOMBINING STATEMENT OF NET ASSETS 1 Statement 29
INTERNAL SERVICE FUNDS
December 31, 2004
Central EE Retirement EE Comp
Garage Benefit Absences Total
Assets:
Current assets:
Cash and cash equivalents 4,779,713 1,529,053 881,890 7,190,656
Accounts receivable net 10,038 1,849 11,887
Inventories at cost 28,120 28,120
Total current assets 4,817,871 1,530,902 881,890 7,230,663
Noncurrent assets:
Capital assets:
Machinery and equipment 5,807,809 5,807,809
Less: Allowance for depreciation (3,764,502) (3,764,502)
Net capital assets 2,043,307 2,043,307
Total noncurrent assets 2,043,307 2,043,307
Total assets 6,861,178 1,530,902 881,890 9,273,970
Liabilities:
Current liabilities:
Accounts payable 52,947 52,947
Accrued salaries payable 3,370 3,370
Total current liabilities 56,317 56,317
Noncurrent liabilities:
Compensated absences payable 857,305 857,305
Accrued health insurance liability 1,548,581 1,548,581
Total noncurrent liabilities 1,548,581 857,305 2,405,886
Total liabilities 56,317 1,548,581 857,305 2,462,203
Net assets:
Invested in capital assets, net of related debt 2,043,307 2,043,307
Unrestricted 4,761,554 (17,679) 24,585 4,768,460
Total net assets 6,804,861 (17,679) 24,585 6,811,767
79
CITY OF BROOKLYN CENTER, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, E ES AND Statement 30
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2004
Central EE Retirement EE Comp
Garage Benefit Absences Total
Operating revenues:
Charges for services 1,047,210 74,078 1,121,288
Operating expenses:
Personal services 271,841 58,465 74,078 404,384
Supplies 237,261 237,261
Other services 89,566 89,566
Insurance 43,497 43,497
Utilities 2,555 2,555
Depreciation 523,346 523,346
Total operating expenses 1,168,066 58,465 74,078 1,300,609
120 856 58 465
Operating income (loss) (179,321)
Nonoperating revenues (expenses):
Investment earnings 70,462 23,646 12,394 106,502
Gain (loss) on sale of fixed asset 29,202 29,202
Other revenue 50,316 50,316
Total nonoperating revenues (expenses) 149,980 23,646 12,394 186,020
Change in net assets 29,124 (34,819) 12,394 6,699
Net assets January 1 6,775,737 17,140 12,191 6,805,068
Net assets December 31 6,804,861 (17,679) 24,585 6,811,767
80
CITY OF BROOKLYN CENTER MINNESOTA
SUBCOMBINING STATEMENT OF CASH FLOW r),, f Statement 31
INTERNAL SERVICE FUNDS
For The Year Ended December 31, 2004
Central EE Retirement EE Comp
Garage Benefit Absences Total
Cash flows from operating activities:
Receipts from interfund services provided 1,040,667 (1,849) 1,038,818
Payments to suppliers (345,016) (345,016)
Payments to employees (278,990) (57,119) 74,078 (262,031)
Miscellaneous revenue 69,728 (3,285) (1,722) 64,721
Net cash flows from operating activities 486,389 (62,253) 72,356 496,492
1 Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (328,324) (328,324)
Cash flows from investing activities:
Interest on investments 80,253 26,931 14,116 121,300
Net increase in cash and cash equivalents 238,318 (35,322) 86,472 289,468
Cash and cash equivalents January 1 4,541,395 1,564,375 795,418 6,901,188
Cash and cash equivalents December 31 4,779,713 1,529,053 881,890 7,190,656
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) (120,856) (58,465) (179,321)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 523,346 523,346
Changes in assets and liabilities:
Decrease (increase) in receivables (6,543) (1,849) (8,392)
Decrease (increase) in inventories (13,268) (13,268)
Increase (decrease) in payables 41,131 41,131
Increase (decrease) in accrued expenses (7,149) 1,346 74,078 68,275
Other nonoperating income 69,728 (3,285) (1,722) 64,721
Total adjustments 607,245 (3,788) 72,356 675,813
Net cash provided by operating activities 486,389 (62,253) 72,356 496,492
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