HomeMy WebLinkAbout2002 06-17 CCP Work Session AGENDA
CITY COUNCIL WORK SESSION
June 17th, 2002
6:00 P.M
Philip O. Cohen Room: 2nd Floor Communitv Center
Joint Meeting with Financial Commission
1. Presentation and discussion of 2001 Comprehensive Annual Financial Report
a. Cliff Hoffman, Deloitte & Touche
2. General Discussion of 2003 Budget process
a. Uncertainties with legislature: State aids: unknown
b. Levy: best guess of levy limits
c. Fees
i. Rental housing
d. Expenditures
i. Pressures on wages
ii. Pressures on Health Insurance
iii. Public Works being studied
e. Directions
i. Levy Target in light of levy limits
ii. Restoration of EDA operating funds
iii. Service levels
1. set targets for overall personnel expenditures
iv. Contingency level
v. Fees
1. rental housing increase for inspection/enforcement
2. utility contribution to street reconstruction
vi. City Council priorities
f. Format changes
i. Preparation for GASB (Government Accounting Standards Board) 34
1. debt service out of General Fund
a. need to retain ability to know total tax levy of a General
nature in one place
ii. Consideration to net out street reconstruction and cost of Engineering
1. current reimbursement from charging projects v. net
3. Miscellaneous
4. Adjourn
l
City of Brooklyn Center
A Millennium Community
To: Mayor Kragness and Council Members Lasman, Nelson, Peppe, and Ricker
Financial Commission Members
From: Michael J. McCauley
City Manager
Date: June 13, 2002
Re: June 17, 2002 Joint Meeting of City Council with Financial Commission
Preliminary Budaet Discussion
Overview:
The 2002 budget had several notable increases:
- wages & benefits
• led by police, department head, health insurance costs, and PERA
changes (the 2002 Legislature has repealed some of the PERA changes
that extended coverage to many more employees: this will reduce the
increased costs)
• this costs increased in spite of reducing the number of authorized full -
time positions by 1 in the General Fund (3 full -time positions were
eliminated in the Enterprise Funds in 2002 budget)
- technology
o Logis special assessment for financial system of $20,000
o $86,000 (for 2002, 2003, & 2004) for anew police system.
- Special Assessment Construction Fund
o $480,000 in 2002 (409,044 in 2001, $394,197 in 2000)
- Major departmental increases:
• Police 11.24%
• Fire 9.57%
• Buildings 6.18%
Priorities for expenditures in 2002 were:
1) Maintaining current staffing and service levels
2) Maintaining the existing infrastructure
3) Neighborhood street program
4) Completion of building i sues
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
5) Enhancements
Attached are spreadsheets showing increases in departmental budgets for the period 1997
through 2002, General Fund Revenues projected with a table of parameters, and General
Fund Expenditures similarly projected. The projections do not tie with some of the
recommendations in this memorandum, but are for illustrative purposes. Using those
assumptions, we would be $208 out of balance, with expenditures exceeding
revenues. This would be before transferring to the EDA and increasing any fees /licenses.
The important assumptions in arriving at this starting point are:
I
- no increase in State Aids (we will need to actually decrease in some
categories such as police training)
- 3% increase in overall wages & salaries; 10% fringe
- 2.26% increase in revenues v. 3.56% in operating costs.
The 2003 budget will restore Community Center revenues and expenditures to a full year
of operations. To an extent increased costs will be offset by increased revenues, this will "
result in only a marginal potential impact on net operations.
2a. The May 20 Work Session of the City Council and Financial Commission was
cancelled awaiting more certainty regarding potential revenues available for the 2003
budget year. While the Legislature has now adjourned, the only certainty is that the 2002
budget revenues appear to be generally on target. There will be lost revenues in the form
of various aids for specific things such as police training. However, Local Government
Aid will be at the budgeted levels. Unless the State's revenue collections improve, I
would anticipate that the local government aids in 2003 will be reduced. There is no
ability to estimate to what extent they might be reduced.
2b. Levy limits are in place for 2003. We will not receive the calculation of our levy
limit until the end of July at the earliest according to the State Revenue Department. We
are estimating that 3% will be the rough level of that limit.
2c. The cost of administering rental housing regulations has escalated. The aging
apartment stock is presenting new and more complex issues for inspection and
compliance. We find ourselves needing the assistance of experts in structure and
microbiology to fully discharge our inspection obligations. The costs of and need for
increased legal services is also occurring at this time to enforce compliance orders and to
advise regarding compliance issues. Legal fees are also incurred in reviewing our
ordinances to address issues that have been raised and changes in the regulatory
environment in other metropolitan cities. We anticipate that those needs will continue, as
well as potentially more expensive costs of legal services associated with compliance
efforts. I would recommend a review of rental housing license fees based on these
increased costs and a corresponding increase in rental license fees.
2d.i. A number of issues are presented in preparing a 2003 budget. One of the most
significant is pressure on wages from the settlements that were made in 2002 and for
2003 by our comparative cities. Police wages have been the area of most increase. With
comparable worth, other city wages are impacted by increases in police wages. In 2002,
we settled for a 3.5% increase in patrol wages (3.35% for other employees, Captain and
Police Chief salaries were increased at much higher rates for comparability) to maintain
parity with comparable cities. Other city settlements for patrol in 2002 were:
Total
Crystal 1/13.25% 7/1.25% 3.5%
Fridley 4%
Golden Valley 3.5%
Maplewood 3.75%
New Hope 3.5%
Richfield 3.5%
Roseville not settled
White Bear Lake 3.25%
New Hope settled its 2003 contract with a 3.5% increase.
2d.ii. Health insurance is another area of rapidly increasing costs that has impacted
personnel costs in the last several years and will impact 2003 budget preparations. Health
insurance premiums have increased on average of 5 to 10% over each of the past 4 years.
Monthly Insurance Source: Stanton
Contribution Survey
1 13ro o k lyn """',-
3
Center $485.00 } ;Average of settled ( $532.56
------ ------ ........ .._._ . .......... _._...._._..._....._.__......... . _ .._......_...__...._... .............. ............................... ..... .... .. ... ._.........._.......................... ................_..............
Crystal ( $500.00
Fridley j $705.10
!Golden Valley $507.00:
!Maplewood E $613.14
! ;New Hope $465.00
!Richfield ! $495.00
j !Roseville ! $490.21 ! ! 1
... ' .......... ........................... ............................. .
!Shoreview
White Bear Lake
....... _ _ _. . ..... ...... ....
:
2d.iii. A review of public works, focused on Engineering, will begin shortly. We are
reviewing what is the appropriate supervisory configuration and organization. Springsted
will be assisting in that study. Nick Dragisich, a former city engineer and city manager,
will be preparing a review of structural alignment and cost effective means of delivering
services. There are 4 vacant positions at this time: Public Works Director, Public Works
Specialist, and 2 Engineering Technicians. I anticipate there will be some changes such
as the elimination of the Public Works Specialist position and the creation of an MIS
position. The Public Works Specialist position overlapped MIS.
2e.i. The question for the City Council is whether we should prepare a budget based on
an anticipated levy of around 3 %.
2e.ii. In balancing the 2002 budget, the EDA levy was eliminated. We will need to
consider restoring some of those to the EDA, both in the current year and in 2003. Taking
that action would reduce the 2002 General Fund monies and carry over into 2003. There
is more than sufficient money in contingency to cover a transfer and shift. EDA
operations are covered, but we are not replenishing the FDA's fund balance which is
used for EDA activities /projects.
2e.iii. Given the pressures on wages, we must remain competitive and on par with our
comparative cities. This will mean that wages and health insurance will probably grow
faster than overall General Fund Revenues. The impact of that growth will have to be
reflected in continued efforts to seek efficiency and to prioritize services that are offered
to keep the overall General Fund Budget within its resources. The greater challenge,
beyond prioritization of services leading to potential cuts, is to maintain the ability to
reconstruct streets. Street reconstruction may need to receive more funding from the
utilities. We have projects that are driven more by the condition of the water and /or sewer
lines than by the condition of the pavement.
I would suggest that overall personnel c °
gg p costs be limited m growth to 3 /o to retain our
ability to fund capital, while recognizing that wages and insurance costs would increase
at rates in excess of 3 %.
2e.iv. Contingency was increased in the 2002 budget in response to the uncertainty of
the potential impacts of September 11 t ". In the last several years, the budget has
contained a minimal contingency amount. Part of the rationale was that funding for street
reconstruction and other capital needs was an appropriate place for available funds. Also,
the monies allocated for capital project transfers constitute a contingency fund in that
these monies are not transferred until the end of the year in the normal course. In order to
re -fund a portion of EDA operations and to balance a draft budget, I would recommend
reducing contingency in the General Fund to the $50,000 range.
2e.v.
1. Based on the increased costs, both for consultants and enforcement and staff
time, I would recommend exploration of an increase in rental housing license
fees to recoup our costs.
2. 1 would also suggest exploration of increasing the contribution of the utilities
to the street reconstruction costs.
2e.vi. This section of the agenda is for input regarding priorities or issues that the City
Council /Financial Commission want addressed in the budget process.
2f.i. As we prepare for GASB 34, a number of changes will be mandated in our
budgeting and accounting. One of these will be separating the debt service levies from
the General Fund. I placed these levies into the General Fund with an accompanying
transfer out to the debt service funds in an attempt to make the budget more
comprehensive and easier to understand what the total levy was. In responding to GASB
34, I still want the presentation to allow a person to see what the General tax levels are
for the City. This can be accomplished in summary budget materials included in the
budget presentation.
2£ii. Another presentation change may be in the area of the reimbursement for
engineering wages and costs and the transfer to the street reconstruction fund. I have not
been satisfied with the process we have used since it is not as accountable as I would like.
Also, it is more complicated than necessary. The transfer in and the transfer out tend to
obscure some of the costs. We will be working on a change that would only allocate
wage and benefit costs of staff for construction projects where there is a third party
reimbursement of those cost. This would be the case where the State or State Aid would
be reimbursing those costs or where they would be charge to a City Enterprise Fund such
as the water utility. This will provide better tracking of costs and reduce double counting
occasioned by billing a project for employee time (unless third party) and then
transferring money to Special Assessment Construction Fund that is in turn transferred
back in part to cover the reimbursement to the General Fund for wages. The process
previously had been to budget against projects, but this made it difficult to track the total
cost of the Engineering Division.
General Fund Printed: 06/14/2002 1YR date entered. 11/29/2001
GENERAL Code 1997 1998 1999 20 2001 20 02 IYR I Change since 97 since 97 avg 97
City Council $126,089 $123,711 $120,603 $120,247 $124,267 $126,809 2.05'%, 52,542 0.57 $720 0.11'%
Administration $198,283 $200,219 $191,415 $181,432 $187,817 5196,270 4.50 $8,453 - 1.02% ($2,013) -0.20%
Human Resources 5166,728 1165,069 $166,239 $183,967 5192,376 $209,900 9.11'9. I $17,524 25.89%, $43,172 5.18'%
City Clerk $48,397 $69,279 $70,855 $76,024 $77,204 $82,410 6.74'%, 55,206 70.28'%6 $34,013 14.06'%
Elections $48,397 569,088 557,166 $82,373 $81,057 586,016 6.12%, $4,959 77.73'%, $37,619 15.55'!4
Finance $384,563 $412,411 $414,774 $417,768 $437,113 $461,726 5.63% $24,613 20.07'%, $77,163 4.01'%
Assessing 432 $247,358 $261,592 $262,620 $268,498 $287,756 $228,395 - 20.63'% ($59,361) -7.67%, ($18,963) -1.53%
Data Processing $241,451 $222,719 $228,006 $248,069 $275,260 $266,885 -3.04%, ($8,375) 10.53% $25,434 2.11'%
Legal $201,400 51 98,400 $ $220,000 $240,000 $24 0.00"/. W 19.1 7"/ $38,600 3.83 %.
TOTAL: 51,662,666 $1,722,488 $I,709,578 51,798,378 $1,902,850 $1,898,411 -0.23%. ($4,439) 14.18'%, $235,745 2.84
POLICE
Patrol $2,653,301 $2,709,132 $2,796,754 $2,806,718 $2,891,231 $3,251,531 12.46%, $360,300 22.55'% $598,230 4.51
Investigation $588,580 $579,855 $544,099 $623,404 5607,461 $674,510 11.04'%, $67,049 14.60% $85,930 2.92'%,
Support Services 418 $821,989 $840,719 $937,341 $970,636 $976,461 $1,044,624 6.98 $68,163 27.08% $222,635 5.42 %
Police Station Nlaint. $57,348 $109,168 $106,665 $129,566 21.47"/, $22,901 ERR $129,566 ERR
Chief 419 $157,295 $14 $131,966 $133,287 5143,630 5156,206 8.76 $12,576 - 0.69 ($1,089) - 0.14
TOTAL: $4,221,165 $4,276,492 $4,467,508 $4,643,213 $3,725,448 $5,256,437 11.24% $530,989 24.53' 1 /o $1,035,272 4.91'%,
FIRE
Fire 425 $603,820 $594,271 5592,737 $649,273 $657,472 5708,204 7.72'%, $50,732 17.29"X, $104,384 3.46'%,
Emergency Prep. 426 $51,8_7 $37,849 $ 47,183 $37,8 $44,757 $61,247 36.84'% $16,490 1 $9,376 3.62%,
TOTAL: $655,691 $642,120 $639,921 $697,088 $702,229 $769,4511 9.57'%. 67,222 17.35%, $113,760 3.47%
COMMUNITY DEV. I
Inspections' 430 $229,633 $261,724 $268,174 $309,956 $328,521 $301,851 8.12 % ($26,670) 31.45'% $72,218 6.29'%.
Planning & Zoning 431 5116,180 $111,107 $ 110,71 2 $114,539 $119,898 $124 ,239 3.62'% $4,331 6.94 $ 8,059 1.39
TOTAL: $335,873 $372,831 $378,886 $324,495 $448,419 $326,090 4.98 ($ 22,329) 23.21' %, $80,277 4.63'%
ERR $o ERR
Conv. & Tourism 433 $206,570 5218,500 $261,251) $308,750 $342,000 5342,000 0.00%, $0 65.56'% $135,430 13.1 I
Social Sevices $80,000 $80,104 S79,860 $95,030 $106,035 $103,419 -2.47%, ($2,616) 29.27%, $23,419 5.85'%
BUILDINGS
Custodial Services 440 $49,964 $55,041 560,329 $60,719 $61,440 - 100.00% 1 ($61,440) - 100.00%, ($49,964) 20.00'%
Bldg. Maint. 441 $297,469 $371,502 5398,616 $372,963 5384,564 - 100.00'% I (5384,564) - 100.00' %, (5297,469) - 20.00
Govt. Bldg ground 442 $42,952 $65,364 560,902 $61,2 $65 - 100.00'% (865,152) - 100.00'% ($ 42,952) - 20.00
TOTAL: $390,385 $491,907 $519,847 $494,934 S511,156 $532,739 6.18% $31,583 39.03 % $152,354 7.81
PUBLIC WORKS
Engineering 443 $369,546 $380,104 $429,363 5442,215 $442,658 $481,927 8.87'%. $39,269 30.41'%, $112,381 6.08
Pub. Works Admin 444 $194,025 $195,329 $204,434 $210,085 5218,250 5239,136 9.57%4 $20,886 23.25"% $45,111 4.65'%
Street Maint. 445 $919,751 $941,086 $897,028 $854,483 5857,570 $922,748 7.60% $65,178 0.33'% 52,997 0.07%
Traffic control 446 $168,747 $174,555 $181,746 $198,111 $209,206 $193,661 - 7.43'% ($15,545) 14.76'%. $24,914 2.95
Snow & Ice 447 $183,161 $191,092 $200,403 $203,642 $222,168 $225,712 1.60'% $3,544 23.23 $ 42,551 4.65' %6
Street Lighting 448 $139,000 $133,000 $134,500 $138,500 $132,500 $0 - 100.00"/ ($142,500) -100.00%, ($139,000) - 20.00
Parks Maint 449 $348,290 $302,388 $311,393 5368,996 $361,906 $354,016 - 2.18'%, ($7,890) 1.63 % $5,726 0.33%
Park Fac. Maint 450. $267,630 $275,881 $276,930 $271,623 $283,553 5290,760 284% $7,207 8.64%, $23,130 1.73'%
Nlaint. Rec. Prog 451 $53,026 $61,209 $64,195 $70,253 $68,458 $65,617 - 4.15'% ($2,841) 23.74% $12,591 4.75
Forestry 452 $103,866 $106,829 $109,419 $122,312 $126,025 $130,011 3.16 $ 3,986 25.17'% $26,145 5.03
Ice & Hockey 454 $90,777 $93,765 $102 $100,839 $107,831 $108,043 0.20% $212 19.02% $1 7,266 3.80'%.
$2,837,819 $2,856,238 $2,911,952 $2,981,060 S3,040,125 $3,011,631 -0.94% ($28,494) 6.12'%. $173,812 1.22%
CARS
CARS Admin $135,786 $141,066 $146,027 $154,422 5.75% $8,395 ERR $154,422 ERR
Rec. Admin 460 $400,701 5433,630 $322,080 $330,933 5328,871 $342,404 4.11'% $13,533 - 14.55% ($58,297) -2.91%
Adult Rec 461 $273,683 $249,490 $234,223 $224,483 $206,522 5194,767 -5.69 ($ 11,755) - 28.83'%, ($78,916) -5.77%
Teen Programs 462 $12,892 $12,966 $18,077 $15,318 $9,290 $7,8051 15.98'%, ($1,485) - 39.46'%. ($5,087) - 7.89
Youth Rec. 463 $109,644 $109,942 $108,092 $110,198 $122,499 $101,916 16.80'% ($20,583) - 7.05'%4 ($7,728) -1.41%
General Rec. 464 $56,813 553,924 555,088 556,294 $59,497 570,472 18.45'%, $10,975 24.04% 513,659 4.81%
Community Cell. 465 $275,162 5225,580 $244,418 $246,566 $227,329 5239,860 5.51'%, ! $12,531 - 12.83% ($35,302) - 2.57'%.
Pool 466 $332,259 52 39,673 $249 $255,159 5225,056 $223 - 0.90'9, ($2, - 32.87'%. ( $109,230) -6.57%
51,461,154 $1,325,205 $1,367,612 51,380,017 51,325,091 $1,334,675 0.72,584 -8.66% (5126,479) - 1.73'%.
MISCELLANEOUS
Risk Mgmt. 470 $167,000 $157,000 $152,500 $152,700 5169,400 $164,810 - 2.71'% ($4,590) - 1.31% ($2,190) - 0.26%
Central Supplies/ 471 $251,200 $375,369 $362,059 $312,376 $345,648 $432,380 25.09'%, $86,732 72.13'%, $181,180 14.43%
Civic Events 472 $1,500 $6,425 $6,459 $13,767 $9,387 $9,392 0.05 ° / $5 526.13% $7,892 105.23
Reimbursement Other Funds
474 (5699,141) ($715,538) ($737,487) ($749,233) ($770,707) (5782,684 1.55' ($11,977) 11.95 / %
° (583,543) 2.39
Transfers (debt)& Cad 475 $244,281 $1,378,425 $1,384,971 $1,477,604 S1,580,872 $1,645,670 %
4.10 %, S64,798 573.68% $1,401,389 114.74%
y
General Fund Revenues 14- Jun -02
1997 1998 1999 2000 2001 2002 2003 2004
(net of debt service)
Property Tax Levy $6,192,121 $6,332,314 $6,514,597 $6,702,315 $7,001,904 $9,205,545 $9,481,711 $9,789,867
Est. Uncollectible ($185,764) ($189,969) ($195,438) ($258,235) ($210,057) ($276,166) ($284,451) ($293,696)
Misc. Taxes $437,000 $461,000 $551,000 $650,000 $720,000 $720,000 $741,600 $763,848
Licenses & Permits $300,160 $364,585 $414,270 $512,050 $551,165 $565,485 $576,795 $594,099
Intergovernmental Revenue $221,111 $248,570 $241,398 $247,351 $251,469 $184,765 $184,765 $190,308
PERA Aid $0 $34,365 $34,365 $0 $0 $0 $0 $0
HACA $1,308,130 $1,308,130 $1,307,465 $1,379,768 $1,380,106 $0 $0 $0
LGA $1,922,164 $2,012,749 $2,069,744 $2,122,635 $2,179,744 $2,265,267 $2,265,267 $2,265,267
Low Income Housing Aid $56,892 $87,739 $64,808 $64,808 $64,808
Police Pension Aid $220,000 $245,000 $236,535 $260,931 $250,000 $250,000 $250,000 $250,000
Charges for Services $21,020 $21,900 $23,000 $23,600 $30,000 $22,870 $23,556 $24,263
Public Safety Charges $19,900 $23,700 $23,050 $31,000 $37,000 $16,250 $16,413 $16,577
Recreation Fees $450,824 $425,794 $428,056 $381,750 $330,045 $330,047 $339,948 $350,147
Community Center Fees $411,800 $411,200 $388,100 $343,400 $225,000 $235,350 $240,057 $244,858
Court Fines $192,000 $192,000 $186,000 $200,000 $185,000 $190,000 $193,800 $197,676
Misc. Revenues $12,000 $12,000 $12,000 $12,000 $12,000 $15,000 $15,000 $15,000
Interest Earnings $270,000 $300,000 $280,000 $324,000 $360,000 $350,000 $350,000 $353,500
Liquor Transfer $1 00,0 00
— -- � - -- - - -
$11,892,466 $12,203,338 $12,514,142 $12,989,457 $13,391 $14,139,221 $14,4 269 $14 826 ,521
% Increase 2.61 % 2.55% 3.80% 3.09% 5.59% 2.26% 2.54%
$increase $310,871 $310,805 $475,315 $401,658 $748,106 $320,048 $367,252
Parameters 1999 2000 2001 2002 2003 2004
Property Tax Levy 2.88% 2.88% 4.47% 2.75% 3.00% 3.25%
Est. Uncollectible 2.88% 2.88% -18.66% 31.47% 3.00% 3.00%
Misc. Taxes 19.52% 17.97% 10.77% 3.00% 3.00% 3.00%
Licenses & Permits 13.63% 23.60% 7.64% 3.00% 2.00% 3.00%
Intergovernmental Revenue perf. aid elimin -2.89% 2.47% 1.66% 0.00% 0.00% 3.00%
PERA Aid 0.00% -100.00% 0.00% 0.00% 0.00%
HACA -0.05% 5.53% 0.02% 0.00% 0.00% 0.00%
LGA 2.83% 2.56% 2.69% 0.00% 0.00% 0.00%
Low Income Housing Aid 1st year
Police Pension Aid -3.46% 10.31% -4.19% 0.00% 0.00% 0.00%
Charges for Services 5.02% 2.61% 27.12% 3.00% 3.00% 3.00%
Public Safety Charges -2.74% 34.49% 19.35% 1.00% 1.00% 1.00%
Recreation Fees 0.53% -10.82% -13.54% 10.00% 3.00% 3.00%
Community Center Fees -5.62% -11.52% -34.48% 30.00% 2.00% 2.00%
Court Fines -3.13% 7.53% -7.50% 2.00% 2.00% 2.00%
Misc. Revenues 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Interest Earnings -6.67% 15.71% 11.11% 1.00% 0.00% 1.00%
EXPENDITIIRE BY OBJECT 0
05/14/2002
1998 1999 2000 2001 2002 2003 2004
Salaries & Wages $6,576,342 $6,773,751 $7,068,283 $7,141,101 $7,505,790 $7,730,964 $7,962,893
Fringe Benefits $1,561,620 $1,655,561 $1,698,438 $1,770,038 $1,920,227 $2,112,250 $2,175,617
Supplies $530,818 $526,938 $552,706 $550,845 $553,104 $564,166 $581,091
Purchased Services $450,449 $447,812 $461,387 $472,054 $473,137 $482,600 $492,252
Communications $225,055 $226,402 $264,779 $277,481 $291,379 $298,663 $306,130
Repair Rental & Maint. $391,134 $416,077 $453,259 $488,591 $596,188 $608,112 $626,355
Other Contractual Serv. $758,422 $785,723 $853,101 $931,308 $918,708 $937,082 $955,824
Central Garage Rentals $940,704 $912,654 $890,036 $891,212 $978,204 $997,768 $1,017,723
Insurance $127,000 $126,500 $126,350 $145,150 $149,810 $166,289 $169,615
Utilities $479,450 $508,250 $518,190 $536,085 $458,580 $472,337 $486,508
Capital Outlays $310,555 $313,700 $307,162 $326,445 $258,863 $266,629 $277,294
NSP Debt service $16,660 $16,660 $4,170
Transfer to Other Funds $1,378,425 $1,384,971 $1,477,604 $1,580,872 $1,645,670 $1,645,670 $1,645,670
Administrative Service ($315,538) ($315,487) ($317,233) ($335,526) ($352,684) ($365,028) ($372,328)
Reimb. from other Funds ($400,000) ($422,000) ($432,000) ($435,181) ($430,000) ($442,900) ($456,187)
Cost of Sales $37,000 $33,000 $33,500 $23,000 $25,400 $25,908 $26,426
C onting ence $ 136,1 30 $1 31,064 $57,808 $57,8 $157, $15 $162,61
$13,187,566 $13,504,916 $14,030,030 $14,437,943 $15,154,421 $15,658,385 $16,057,493
% Over Previous Year 2.41% 3.89% 2.91% 4.96% 3.33% 2.55%
Adjust for Debt Service ($984,228) ($990,774) ($983,407) ($990,824) ($990,824) ($990,824) ($990,824)
Adjusted Total: $12,203,338 $12,514,142 $13,046,623 $13,447,119 $14,163,597 $14,667,561 $15,066,669
% Over Previous Year 2.55% 4.26% 3.07% 5.33% 3.56% 2.72%
1998 1999 2000 2001 2002 2003 2004
Parameters
Salaries & Wages 3.00% 4.17% 1.02% 5.11% 3.00% 3.00%
Fringe Benefits 6.02% 2.52% 4.05% 8.49% 10.00% 3.00%
Supplies -0.73% 4.66% -0,34% 0.41% 2.00% 3.00%
Purchased Services -0.59% 2.94% 2.26% 0.23% 2.00% 2.00%
Communications 0.60% 14.49% 4.58% 5.01% 2.50% 2.50%
Repair Rental & Maint. 6.38% 8.20% 7.23% 22.02% 2.00% 3.00%
Other Contractual Serv. 3.60% 7.90% 8.40% -1.35% 2.00% 2.00%
Central Garage Rentals -2.98% -2.54% 0.13% 9.76% 2.00% 2.00%
Insurance -0.39% -0.12% 12.95% 3.21% 11.00% 2.00%
Utilities 6.01% 1.92% 3.34% -14.46% 3.00% 3.00%
Capital Outlays 1.01% -2.13% 5.91% -20.70% 3.00% 4.00%
NSP Debt service 100.00% 0.00% -74.97%
Transfer to Other Funds 0.47% 6.27% 6.53% 4.10% 3.00% 3.00%
Administrative Service -0.02% 0.55% 5.45% 5.11% 3.50% 2.00%
Reimb. from other Funds 5.50% 2.31% 0.73% -1.19% 3.00% 3.00%
Cost of Sales -10.81% 1.49% -45.65% 10.43% 2.00% 2.00%
Contingency -3.72% -126.72% 0.00% 173.10% 0.00% 3.00%
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May 3, 2002
Tu the City Council ofthe
City of Brooklyn Center
Brooklyn Center, Minnesota
In planning and performing our audit of the general purpose financial statements of the City of Brooklyn
Center (the City) for the year ended December 31, 2001 (on which we have issued our report dated
�
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May 3, 2002), we considered its internal control in order tudetermine our auditing procedures for the
purpose of expressing uo opinion outhe general purpose financial statements and not to provide
uuaucuoce ou the City's internal control. However, we noted certain matters involving the City's internal
control and its operation that we consider to be a reportable condition under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the City's internal control that,
in our judgment, could adversely affect the [dy`m ability to record, process, ouuuoucze, and report
fiuuuciuldata consistent with the assertions of management io the financial statements. The reportable
condition that vvc noted iu summarized below and is more completely described iu Exhibit l.
The City contracts with a third-party service organization for information systems support. The service
organization has not been examined independently under the provisions of Statement on Auditing
Standards No. 70,Servicx Organizations, for at |cuxt five years.
Our consideration ofthe City's internal control would not necessarily disclose all matters in the City's
internal control that might he reportable conditions and, accordingly, would not necessarily disclose all
reportable conditions that are also considered tohc material vvoukoeaxea. Anzutedu| weakness is
reportable condition in which the design or operation of one or more of the internal control components
does not reduce to ureludvoly low level the risk that nzisutuicneutu caused by error orfraud in un000utm
that would be material in relation to the fiuuuoiu| uiutcmontu being audited may occur and not hedetected
within u timely period hy employees io the normal course ofperforming their assigned functions. The
reportable condition described io Exhibit lix not believed inbcumaterial vveukoomo.
Comments related to the City's internal control and certain other accounting, administrative, oroperating
matters are presented in Exhibit 11 - Cuffent-Year Comments and Recommendations and Exhibit In -
Follow-Up on Prior-Year Comments and Recommendations.
This report is intended solely for the information and use of the City Council members, management, and
others within the City and is not intended to be and should not be used by anyone other than these
specified parties.
VVu will he pleased to discuss these recommendations with you and, if desired, to assist you in
implementing any of the suggestions.
Yours truly,
/
--------
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EXHIBIT I
REPORTABLE CONDITION
Computer Processing Environment:
The following observation is considered to be a reportable condition under standards established by the
American Institute of Certified Public Accountants.
Observation:
The City contracts with a third -party service organization for information systems support. The service
organization provides a full range of locally supported information systems, data processing services, and
related support services for many cities in the metropolitan area. The City relies on the service
organization for support in the code enforcement, permits and inspection, financial, payroll and human
resources, GIS (geographic information systems), fleet management, and parks and recreation system -
processing environment. In addition, the service organization supports the City's network services,
police computer -aided dispatch system, police records management system, property data system, special
assessment system, and utility billing system application software.
The service organization has not been examined independently under the provisions of Statement on
Auditing Standards (SAS) No. 70, Service Organizations, for at least five years. Fiscal 2001 represents
the second year since the implementation of J.D. Edwards, a highly complex computer processing
system.
Background:
When a user organization uses a service organization, transactions that affect the user organization's
financial statements are subjected to controls that are, at least in part, physically and operationally
separate from the user organization. When the user organization initiates transactions and the service
organization executes and does the accounting processing of those transactions, there is a high degree of
interaction between the activities at the user organization and those at the service organization. Due to
the high degree of interaction involved between the City and the service organization, it is essential that
the City have assurance that the service organization has effective controls for those transactions.
SAS No. 70, as amended by SAS Nos. 78 and 88, provides guidance on the factors an independent
auditor should consider when auditing the financial statements of an entity that uses a service
organization to process certain transactions. The statement also provides guidance for independent
auditors who issue reports on the processing of transactions by a service organization for use by other
auditors. Banks, insurance companies, payroll processing services, and other entities which provide
computer services that users rely on issue an annual report of the quality of internal controls (SAS 70
report) over data processing. The work is performed by certified public accountants which then can be
relied on by the users' auditors. This is a much more efficient approach than having each user's auditors
attempting to audit the data processing entity.
Recommendation:
We recommend the City require the service organization to obtain an SAS 70 report during calendar year
2002 and annually thereafter.
2
EXHIBIT II
CURRENT -YEAR COMMENTS AND RECOMMENDATIONS
Inventorv:
Observation:
The City uses a perpetual inventory system at the City -owned liquor store. The store performs cycle
counts on a monthly basis, comparing cycle count results to perpetual records. Book -to- physical
adjustments are made immediately for any discrepancies discovered during the cycle counts.
Recommendation:
We commend the City for implementing a cycle counting system for the inventory. We encourage the
City to formally document the results of the cycle counts, so that management may periodically review
the variances and identify the areas where recurring discrepancies exist.
Depreciation Policy:
Observation:
The City's policy regarding depreciation of new assets for the Central Garage Fund differs from that of
other funds. Many of the fixed assets recorded in the Central Garage Fund have short lives, and as a
result, the depreciation on these assets is accelerated. Some of the fixed assets involved include squad
cars, which are commonly sold at an auction every two to three years. It is common for the City to
realize a gain on the sale of the asset, because the assets are initially recorded at an estimated $0 salvage
value. To offset the accelerated depreciation, any gains on the sale of assets recorded in the Central
Garage Fund are netted against depreciation expense.
Recommendation:
While the netting of depreciation and gains on the sale of assets does not produce a material
misstatement, the practice is not in accordance with accounting principles generally accepted in the
United States of America. We recommend that the City set up estimated salvage values for the fixed
assets recorded in the Central Garage Fund, which will allow the City to record depreciation expense that
reflects the replacement cost of the fixed assets recorded in the Central Garage Fund.
Establishing a Preaudit Entrance Conference:
Observation:
With the advent of Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements - and Management's Discussion and Anal -for State and Local Governments
(where governmental accounting will more closely follow the private sector), combined with conflicting
news, opinions, and proposed reforms circulating in this "Enron era," preaudit entrance conferences are
likely to become more common in the public sector.
3
Background:
The optimal governance relationship is frequently described as one in which the City Council,
management, and the external auditors recognize their interdependency and engage in open, candid
dialogue. Management, the external auditors, and the City Council must work together in a spirit of
mutual respect and cooperation. The components of the Committee of Sponsoring Organizations
(COSO) Framework is one of the most important tools for implementing effective internal controls and
financial management.
Recommendation:
Management and the City Council should consider establishing a preaudit entrance conference between
management, the auditors, and the City Council. We recognize the commitment of the City Council and
management to maintain strong internal controls over financial reporting and also encourage the City to
promote a citywide focus on applying the principles of the COSO Framework.
The following is a summary of the COSO Framework, which is considered best practices for financial
management.
Components of the COSO Framework:
The COSO Framework provides a common definition of internal control over financial reporting and
general standards or criteria for maintenance of effective internal control. The COSO Framework
broadly defines internal control as a process, affected by an entity's board of directors, management and
other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the
following categories:
• Effectiveness and efficiency of operations
• Reliability of financial reporting
• Compliance with applicable laws and regulations.
COSO further identifies five components indicative of an overall system of internal control, which
provide reasonable assurance that management's specific objectives with respect to financial reporting,
compliance with laws and regulations, and operating efficiency will be achieved. These interrelated
components are as follows:
Control Environment - The control environment sets the tone of an organization, influencing the control
consciousness of its people. It is the foundation for all other components of internal control, providing
discipline and structure. Control environment factors include the integrity, ethical values, and
competence of the institution's people; management's philosophy and operating style; the way
management assigns authority and responsibility, and organizes and develops its people; and the attention
and direction provided by the City Council.
Risk Assessment - Every entity faces a variety of risks from external and internal sources that must be
assessed. A precondition to risk assessment is establishment of objectives, linked at different levels and
internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement
of the objectives, forming a basis for determining how the risks are managed. Because economic,
industry, regulatory, and operating conditions will continue to change, mechanisms are needed to identify
and deal with the special risks associated with change.
4
Control Activities - Control activities 'ie
are the policies and procedures that help ensure mana
p p e p e ` ement
directives are carried out. They help ensure that necessary actions are taken to address risks to
achievement of the institution's objectives. Control activities occur throughout the organization, at all
levels and in all functions. They include a range of activities as diverse as approvals, authorizations,
verifications, reconciliations, reviews of operating performance, security of assets, and segregation of
duties.
Information and Communication - Pertinent information must be identified, captured, and communicated
in a form and time frame that enable people to carry out their responsibilities. Information systems
produce reports, containing operational, financial, and compliance - related information, that make it
possible to run and control the business. They deal not only with internally generated data, but also
information about external events, activities, and conditions necessary for informed business decision -
making and accurate external reporting. Effective communication must also occur in a broader sense, in
all directions throughout the organization. All personnel must receive a clear message from senior
management that control responsibilities must be taken seriously. They must understand their own role
in the internal control system, as well as how individual activities relate to the work of others. They must
have a means of communicating significant information upstream. There also needs to be effective
communication with external parties, such as customers, suppliers, regulators, and taxpayers.
Monitoring - Internal control should be monitored - a process that assesses the quality of the system's
performance over time. This is accomplished through ongoing monitoring activities, separate
evaluations, or a combination of the two. Ongoing monitoring occurs in the course of operations. It
includes regular management and supervisory activities, and other actions personnel take in performing
their duties. Internal audit frequently performs a monitoring function within institutions. The scope and
frequency of separate evaluations will depend primarily on an assessment of risks and the effectiveness
of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with
serious matters reported to senior management and the City Council.
Accrual for Postemployment Benefits:
Observation:
The City offers postemployment medical benefits to qualifying employees. This liability has continued
to increase significantly over the years, and an outside actuarial valuation of the liability has never been
performed. In the prior year, we recommended that the City have an outside actuarial valuation
performed to develop a baseline for this liability. The City has performed its own detailed analysis of the
liability in fiscal 2000. The analysis included actuarial factors (such as inflation rates).
Recommendation:
We continue to recommend that an outside actuarial valuation be performed by qualified professionals.
As implementation of GASB Statement No. 34 approaches, the City will be required to adopt full accrual
accounting to include accounting for postemployment benefits. We understand the City has been
reluctant to have an outside actuarial valuation because the cost may exceed the benefits. However, once
the baseline valuation is performed, such valuation could then be updated every two to three years
(versus every year), as necessary.
5
Segregation of Duties - Utility Billing:
Observation:
During testing of controls, we noted that mailed payments are received directly by the utility billing
department. Segregation of duties related to the receipt and recording of funds is an important control
that mitigates the risk of fraud and the misappropriation of funds.
Recommendation:
We recommend that the City consider setting up a lock -box system that would allow segregation of
billing and cash receipts within the billing department.
Financial Reporting Model:
On June 30, 1999, the GASB issued Statement No. 34. GASB Statement No. 34 changes the framework
of financial reporting for state and local governments.
The primary requirement of GASB Statement No. 34 is that financial statements must be accompanied by
a narrative introduction and analytical overview of the government's financial activities in the form of
"management's discussion and analysis" (MD &A). The new MD &A will be classified as Required
Supplemental Information (RSI) and has specific requirements as to content. Additionally, the
measurement focus and accounting basis will change for most funds.
The major changes as a result of GASB Statement No. 34 are as follows:
• Creation of an entitywide statement of activities that is designed to display information about the
government as a whole, except for fiduciary activities. The statement highlights both the total
expense of each different function and the net expense of that same function (i.e., total expense less
related revenues such as fees, charges, and restricted grants). Activities will be presented in a net
expense format breaking out governmental and business -type activities separately. An entitywide
statement of net assets is also required.
• Fund financial statements will include a general fund and all other nonmajor governmental funds in
aggregate. A balance sheet and statement of revenues, expenditures, and changes in fund balances
will be required.
• Fund financial statements will also include proprietary and fiduciary funds. The fiduciary funds
should include financial information for fiduciary funds and similar component units. Statements of
net assets; revenues, expenses, and changes in net assets; and cash flows will be required for the
proprietary fund activities. A balance sheet and statement of revenues, expenditures, and changes in
fund balances will be required for fiduciary funds.
• Budgetary comparisons are included as RSI presenting the original budget in addition to the final
amended budget for the general fund and for each major special revenue fund that has a legally
adopted annual budget. The reporting model will require a budgetary comparison for the general
fund and individual major special revenue funds following the notes to the financial statements.
Notes are required to explain any excess of expenditures over appropriations in individual funds.
• The measurement focus and basis of accounting for the statement of net assets and the statement of
activities should be prepared utilizing the economic resources measurement focus and the accrual
basis of accounting.
6
The requirements of GASB Statement No. 34 are effective for the City in 2003.
We recommend that the City review the provisions of GASB Statement No. 34 to determine the
appropriate changes that will be made to the City's current financial reporting model when adopted.
Because of the significant changes, conversion or obtainment of the data will require a plan and long lead
times in many cases. We recommend you set forth a plan to assess the data requirements for the City and
lay out an implementation plan as soon as possible. Our firm has developed an assessment and
implementation tool that is intended to help organizations through the process.
7
EXHIBIT III
FOLLOW -UP ON PRIOR -YEAR COMMENTS AND RECOMMENDATIONS
Investment Policy:
In the prior year, we recommended that the City continue its efforts to improve controls and monitoring
of its investments to include reevaluating its investment policy on a regular basis. The City updated its
investment policy in the current year. As such, this comment will not be repeated.
Fixed Asset Trade -ins:
It is common for the City to purchase new equipment and trade in old equipment at the same time. In the
prior year, the City was not capitalizing the trade -in value of old equipment as part of the new asset. The
City made the correction in the current fiscal year and the comment will not be repeated.
Accrual for Postemployment Benefits:
The City offers postemployment medical benefits to qualifying employees. In the prior year, we
recommended that the City have an outside actuarial valuation performed to develop a baseline for this
liability.
See current year updated comment.
Segregation of Duties - Utility Billing:
During testing of controls in the prior year, we noted that mailed payments are received directly by the
utility billing department. We recommended that the City consider setting up a lock -box system that
would allow segregation of billing and cash receipts within the billing department.
Due to a lack of resources available, the City has not yet been able to implement a lock -box system. This
comment will be repeated in the current year.
Capitali<ation Policy:
The City capitalizes all assets purchased with a value of $1,000 or greater, which is in compliance with
the Government Finance Officers Association (GFOA) recommended practice that governments set a
minimum threshold for capitalization of $1,000 and a maximum threshold of $5,000. We recommended
that the City consider reevaluating its policy and establishing guidelines in accordance with GFOA
recommendations, taking into consideration the costs and benefits of maintaining its current
capitalization threshold of $1,000. The City decided to reevaluate its policy simultaneously with GASB
Statement No. 34 in 2003. This comment will not be repeated in the current year.
Financial Reporting Model:
See current -year recommendation regarding GASB Statement No. 34.
8
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INDEPENDENT AUDITORS" REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED UPON THE AUDIT PERFORMED IN
ACCORDANCE WITH GOVERNMENT»%UDIJiNG STANDARDS
�
Honorable Mayor and Members of the City Council
�
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City of Brooklyn Center, Minnesota
We have audited the financial statements of the City of Brooklyn Center (the City) as of and for the year
ended December 31, 2001, and have issued our report thereon dated May 3, 2002. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America; the
standards applicable tofiuuocia) audits contained in Government Auditing Standards, issued 6vthe
un
CoptoUorGcueodof the lJuitudStates; and the provisions nf the &yh/nczotuLegal Con�//i 'ccAudit
Guidefor Local Government, promulgated by the Legal Compliance Task Force pursuant .oMinnesota
�
Statutes Section 6.65.
�
Compliance:
As part of obtaining reasonable assurance about whether the City's fiounoiu|statements are free of
material misstatement, vve performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, noncompliance with which could have u direct and material effect oo the
determination of financial statement amounts. The Minnesota Legal Compliance Audit Guide/orLocal
Government covers five main categories ofcompliance to be tested: contracting and bidding, deposits
and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our tests of
compliance included all of the listed categories. However, providing un opinion oo compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards or the Minnesota Legal Compliance Audit Guidefor Local Government.
/ntonnw/ Control Over Financial Reporting:
In planning and performing our audit, we considered the City's internal control over financial reporting in
order to determine our auditing procedures for the purpose of expressing an opinion on the financial
atutcnuoutm and not to provide uauoruuoe on the internal control over financial reporting. However, we
noted u matter involving the City's internal control over financial reporting and its opnruduo that we
consider to be a reportable condition under standards established by the American Institute of Certified
Public Accountants. Reportable conditions involve matters coming tu our attention relating to significant
deficiencies iu the design or operation of the City's internal control that, in our judgment, could adversely
affect the City's ability to record, process, summarize. and report financial data consistent with the
assertions of management in the financial statements. The reportable condition that we noted iu
summarized below and more completely described in the attached Exhibit.
The City contracts with uthird-party service organization for information systems support. The service
organization has not been examined independently under the provisions of Statement on Auditing
�
Standards No. 70, Service 0rgx/dzur/o//s, for at least five years.
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Our consideration of the internal control over financial reporting would not necessarily disclose all
matters in the internal control that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses. However, we do not
believe that the reportable condition described in the attached Exhibit is a material weakness. A material
weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would be
material in relation to the general purpose financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions.
This report is intended solely for the information and use of the Mayor and City Council members,
management, and others within the City and officials of applicable federal and state agencies and should
not be used by anyone other than these specified parties.
�e
May 3, 2002
2
EXHIBIT
REPORTABLE CONDITION
Computer Processing Environment:
The following observation is considered to be a reportable condition under standards established by the
American Institute of Certified Public Accountants.
Observation:
The City contracts with a third -party service organization for information systems support. The service
organization provides a full range of locally supported information systems, data processing services, and
related support services for many cities in the metropolitan area. The City relies on the service
organization for support in the code enforcement, permits and inspection, financial, payroll and human
resources, GIS (geographic information systems), fleet management, and parks and recreation system -
processing environment. In addition, the service organization supports the City's network services, police
computer -aided dispatch system, police records management system, property data system, special
assessment system, and utility billing system application software.
The service organization has not been examined independently under the provisions of Statement on
Auditing Standards (SAS) No. 70, Service Organizations, for at least five years. Fiscal 2001 represents
the second year since the implementation of J.D. Edwards, a highly complex computer processing system.
Background:
When a user organization uses a service organization, transactions that affect the user organization's
financial statements are subjected to controls that are, at least in part, physically and operationally
separate from the user organization. When the user organization initiates transactions and the service
organization executes and does the accounting processing of those transactions, there is a high degree of
interaction between the activities at the user organization and those at the service organization. Due to the
high degree of interaction involved between the City and the service organization, it is essential that the
City have assurance that the service organization has effective controls for those transactions.
SAS No. 70, as amended by SAS Nos. 78 and 88, provides guidance on the factors an independent
auditor should consider when auditing the financial statements of an entity that uses a service
organization to process certain transactions. The statement also provides guidance for independent
auditors who issue reports on the processing of transactions by a service organization for use by other
auditors. Banks, insurance companies, payroll processing services, and other entities which provide
computer services that users rely on issue an annual report of the quality of internal controls (SAS 70
report) over data processing. The independent examination is performed by certified public accountants
which then can be relied on by the users' auditors. This is a much more efficient approach than having
each user's auditors attempting to audit the data processing entity.
Recommendation:
We recommend the City require the service organization to obtain an SAS 70 report during calendar year
2002 and thereafter annually.
3
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May 3.2002
To the City Council ufthe
City of Brooklyn Center
Brooklyn Center, Minnesota
Dear Council Members:
We have audited the general purpose fiuuuciu|statements of the City of Brooklyn Center, Minnesota (the
City) for the year ended December 31, 2001, and have issued our report thereon dated May 3, 2002.
Our professional standards require that we communicate with you concerning certain matters that may be
of interest to you in fulfilling your obligation to oversee the fiouociu\ reporting and disclosure process for
�
which management of the City iuresponsible. VVo have prepared the following comments to assist you io
�
fulfilling that obligation.
Our Responsibility Under Generally Accepted Audi/h/XStandards:
Our responsibility under auditing standards generally accepted in the United States of America (generally
accepted auditing standards) has been described to you ioour engagement letter dated December l7,
200\� ��u described in that 1e� , letter, �bnoo standards require among other things, that we obtain an
�
� undoretundiogof the City's botcruul control sufficient toplan the audit and todetermine the nature,
�
timing, and extent o[ audit procedures tobeperformed. We have issued u separate report to you, also
dated May 3, 2002, containing our comments on the City's internal control.
Significant Accounting Policies:
The City's significant accounting policies are set forth in the notes to the City's geuuou) purpose flouocio1
otutenooutu. During the year ended December 31. 2001, there were no significant changes in previously
adopted accounting policies c« their application.
Management's Judgments and Accounting 2j///noros:
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's current judgments. Those judgments are normally based oo knowledge and
experience about past and current events and ou assumptions about future events. Significant accounting
estimates reflected iu the City's 2001 general purpose financial statements include the valuation of
property tax receivables. I)udug the year ended December 3} are not aware of any significant
changes ivaccounting estimates nciu management's *udgneutxrelating to such estimates.
rm noa k'uU
City Council of the
City of Brooklyn Center
May 3. 2002
Page 2
Audit Adjustments:
Our audit was designed to obtain reasonable, rather than absolute, assurance about whether the financial
statements are free of material misstatement, whether caused by error or fraud. In addition, we are
obligated by generally accepted auditing standards to inform you of any adjustments arising from the
audit that could, in our judgment, either individually or in the aggregate, have a significant effect on the
City's financial reporting process. All proposed audit adjustments (whether recorded or uncorrected)
were reviewed with management and were determined, individually or in the aggregate, not to have a
significant effect on the financial reporting process.
In addition, we are obligated by generally accepted auditing standards to inform you about uncorrected
misstatements (regardless of whether they have a significant effect on the financial reporting process)
aggregated by us during the current engagement and pertaining to the latest period presented that were
determined by management to be immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. We did not detect any misstatements during the audit.
Other Information in the Comprehensive Annual Financial Report:
When audited general purpose financial statements are included in documents containing other
information such as the City's Comprehensive Annual Financial Report, generally accepted auditing
standards require that we read such other information and consider whether it, or the manner of its
presentation, is materially inconsistent with the information, or the manner of its presentation, in the
general purpose financial statements audited by us. We have read the other information in the City's
Comprehensive Annual Financial Report and have inquired as to the methods of measurement and
presentation of such information. If we had noted a material inconsistency, or if we had obtained any
knowledge of a material misstatement of fact in the other information, we would have discussed this
matter with management and, if appropriate, with the City Council.
Disagreements with Management:
We have not had any disagreements with management related to matters that are material to the City's
2001 general purpose financial statements.
Difficulties Encountered in Performing the Audit:
In our judgment, we received the full cooperation of the City's management and staff and had unrestricted
access to the City's senior management in the performance of our audit.
This report is intended solely for the information and use of the City Council, management, and others
within the City and is not intended to be and should not be used by anyone other than these specified
parties.
We will be pleased to discuss this report with you further at your convenience.
Yours truly,
C
City of Brooklyn Center
Agreat place to start.. A great, place to stay.
Selected Financial Information
December 31, 2001
1
CITY OF BROOKLYN CENTER
Operating Fund Status
December 31, 2001 vs. December 31, 2000 and December 31, 1999
(in thousands)
Special Internal
General Revenue Enterprise Service
Fund Funds Funds Funds Total
Fund balance at
December 31, 2001 $ 7,434 $ 3,864 $ 51,667 $ 6,948 $ 69,913
Less property (48,147) (2,867) (51,014)
Liquid fund balance $ 7.434 $ 3.864 $ 3.520 $ 4.081 $ 18.899
Fund balance at
December 31, 2000 $ 7,452 $ 2,794 $ 49,422 $ 6,652 $ 66,320
Less property (46,893) (2,989) (49,882)
Liquid fund balance $ 7.452 $ 2.794 $ 2.529 $ 3.663 $ 16.438
Fund balance at
December 31, 1999 $ 7,309 $ 2,701 $ 47,433 $ 6,716 $ 64,159
Less property (44,576) (3,027) (47,603)
Liquid fund balance $ 7.309 $ 2.701 $ 2.857 $ 3.689 $ 16.556
1
CITY OF BROOKLYN CENTER
Productivity Measures
1999 2000 2001
Population 28 535 29,172 29 172
p , ,
Number of Households 11,295 11,300 11,530
Number of Full -time Equivalents (FTE)* 132 133 122
Population per FTE 216 219 239
Households per FTE 86 85 95
* General fund only.
CITY F C
O BROOKLYN ENTER
Enterprise Funds - Operating Income (Loss)
in thousands
1999 2000 2001
Income (loss) before operating transfers:
Water utility $ 283 $ 166 $ 376
Sanitary sewer 452 531 722
Golf course 65 78 36
Municipal liquor store 249 145 273
Recycling and refuse (1) (2) 4
Earle Brown Heritage Center (449) 101 131
Storm drainage 2,090 1,021 1,030
i
Total enterprise funds S 2.689 $ 2.040 S 2.572
3
f
CITY OF BROOKLYN CENTER
Selected Performance Indicators
December 31, 2001
1999 2000 2001
DEBT MEDIANS:
City Net Debt Per Capita $ 240 $ 221 $ 203
Ratio of Net City Debt to Estimated
Full Value .34% .31% .32%
ENTERPRISE MEDIANS -
Operating Ratio:
1
Water uti 1 ity 60.1% 69.1% 63.1%
Sewer and storm 57.1 53.6 51.8
Recycling 101.2 102.2 101.7
Earle Brown Heritage Center 101.7 84.7 84.6
Liquor 68.5 80.3 70.9
Golf course 76.5 72.7 86.3
f
f
f
4
CITY OF BROOKLYN CENTER
Performance Definitions
December 31, 2001
DEBT MEDIANS:
Gross bonded Debt service
Net debt per capita = debt - funds on hand
Estimated population
Ratio of net debt to Gross bonded Debt service
estimated full value = debt - funds on hand
Estimated market value
ENTERPRISE MEDIANS -
Operating ratio = Operating expenses (without depreciation)
Operating revenues
CITY OF BROOKLYN CENTER
Utility Enterprise Fund Comparisons
As of December 31, 2001
(in millions)
Gross
Property
Cash and Fund and Accumulated
City Investments Equity Equipment Depreciation Deficit **
Brooklyn Park $14.7 $97.7 $110.5 $24.3 $(9.6)
Winona 8.0 18 8 32.7 12.0 (4.0)
Minnetonka 214 94.8 129.1 47.8 (26.4)
Burnsville* 12.0 42.1 51,5 25.1 (13.1)
Bloomington 20.6 760 100.5 46.0 (25 4)
Plymouth 17.1 58.6 64.8 24.6 (7.5)
Blaine 15.9 73.0 75.2 18.4 (2.5)
Brooklyn Center 2.8 38.9 45.3 9.4 (6.6)
* Amounts are as of December 31, 2000.
** Calculated as the difference between cash and investments and accumulated depreciation.
6
CITY OF BROOKLYN CENTER
General Fund Revenues
2000 2001
Total Revenues - $14,648,366 Total Revenues = $14,952,171
1% 5%
28%
60%
28%
e 56%
11%
2002
Total Budgeted Revenues = $15,154,42'
2%
18%
9%
71%
0 Taxes
D Fines, forfeits, licenses and permits, charges for services,
and refunds and reimbursements
D Intergovernmental
■ Other revenues
7
I ,
CITY OF BROOKLYN CENTER
General Fund Expenditures
2000 2001
Total Expenditures = $13,825,020 Total Expenditures = $14,277,342
12% 12%
16 /°
° 39% 15% 40%
18%
18%
15% 15%
2002
Total Budgeted Expenditures = $15,154,421
12%
15%
42%
17%
4%
0 Public Safety*
M Public Works"
E:1 General Government
0 Parks and Recreation
E::] Other
Public Safety includes police /fire building bonds (approximately 5% of total
expenditures in each year).
** The 2002 adopted budget classifies government building expenses as Public Works,
whereas the 2001 CAFR classifies such expenses as General Government.
x
CITY OF BROOKLYN CEN TER
General Fund Revenues /Expenditures
Per Household for 2001
$1,400 -/ $1,297
$1,238
$1 ,200
$1 ,000
$800
$600
$400
$200
$0 Z�7
Revenues Expenditures
Note: The average tax paid on the average valued home of $105,600 was $37.42 per
month or $449 annually.
CITY OF BROOKLYN CENTER
Unreserved Undesignated General Fund Balance
Compared to Annual Expenditures
Unreserved
Undesignated Next Year Percentage
Year Ended General Annual of
December 31 Fund Balance Expenditures Expenditures
1999 $ 1,266,465 $ 13,825,030 9.2%
2000 1,249,582 14,437,943 8.7
2001 891,145 15,154,421* 5.9*
*2002 budgeted expenditures.
10
Mr ri r rrr �r CIS IM M M r M M M M r
CITY OF BROOKLYN CENTER
Debt Service Schedule
(Principal and Interest)
$4,500,000
$4,000,000
$3,500,000
$3 ,000,000
$2 ,500,000
$2 ,000 ,000
$1 ,500,000
$1 ,000 ,000
$500,000
$0
N M 00 O O N M
O O O O O O O O �-
O O O O O O O O O O O O
N N N N N N N N N N N N
❑ General Obligation Bonds ❑ Tax Increment Bonds JW Special Assessments Bonds
i
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11
CITY OF BROOKLYN CENTER
Relative Values of Best
Practices in Ratings
Best Practice Value
Fund balance reserve policy/working capital reserves Very Significant
Multiyear financial forecasting Significant
Quarterly financial reporting and monitoring Significant
Contingency planning policies Influential
Policies regarding nonrecurring revenue Influential
Depreciation of general fixed assets Influential
Debt affordability reviews and policies Very Significant
Pay-as-you-go capital funding policies Significant
Rapid debt retirement policies of more than 65% in 10 years Significant
Five-year capital improvement plan integrating operating costs Influential
Financial reporting award (GFOA, ASBO) Influential
Budgeting award (GFOA, ASBO) Influential
GFOA - Government Finance Officers Association
ASBO - Association for School Budgeting Officers
Note: The City of Brooklyn Center follows most of these best practices.
12
I
I �
Worst Practices Having
Significant Rating Concern
1. Cash basis accounting.
2. Qualified audit opinion for material weaknesses.
3. Deficit financing for two of last five years.
4. Slow debt retirement less than 35% in 10 years).
( Y )
5. Unfunded accrued pension liability (funding ratio less than 60%).
6. TRANS/RANs growing significantly faster than annual spending.
7. Debt restructuring that defers less than 35% of current debt service.
8. Overreliance on nonrecurring revenue of less than 15%.
9. Aggressive investment policy for operating funds.
10. Pension contribution deferral in the current budget year.
11. Budgetary impasse beyond legal completion date.
12. Lack of capital improvement plan.
13. Excess interfund borrowing, with no capacity to repay in near future.
TRANs - Tax and revenue anticipation notes. RANs - Revenue anticipation notes.
Note: The City of an of these practices.
Brooklyn Center does not follow
Y Y p
I �
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13
CITY OF BROOKLYN CENTER
Competitive Advantages
• Written financial constitution.
• Strong enterprise fund performance. Users being charged to maintain system.
• Strong bond ratios.
• Consistent financial management.
' • Conservative accounting.
g
• Geographic location.
•
Al bond rating.
Challenges
• Economic viability of Earle Brown Heritage Center.
• Internal cost of implementing new GASB reporting model.
• Employee Recruitment and Retention.
14
COMPREHENSIVE
ANNUAL
1
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 2001
Michael J. McCauley, City Manager
1
Prepared by
1
THE DEPARTMENT OF FINANCE
1
(Member of Government Finance Officers
Association of the United States and Canada)
I �
i
City of Brooklyn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001
TABLE OF CONTENTS
Exhibit Page
' I. INTRODUCTORY SECTION Number Number
Title Page i
Table of Contents ii - vii
City Officials 1
' Organization Chart 2
City Manager's Letter 3
Letter of Transmittal 4-14
Certificate of Achievement 15
ll. FINANCIAL SECTION
Independent Auditors' Report 16
A. General l Purpose Financial Statements
S e
(Combined Statements - Overview): 17
Combined Balance Sheet - All Fund Types and
Account Groups 1 18-19
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types 2 20
Combined Statement of Revenues, Expenditures and
' Changes in Fund Balances - Budget And Actual -
General and Special Revenue Funds 3 21
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - Proprietary
Fund Types 4 22
Combined Statement of Cash Flows -
Proprietary Fund Types 5 23
Notes to Financial Statements 24-47
i
ii
1
of Brooklyn Center Minnesota ,
City y ,
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001 '
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number '
B. Combining, Individual Fund and Account Group
Financial Statements and Schedules:
General Fund:
Comparative Balance Sheet A -1 49
Comparative Statement of Revenues,
Expenditures and Changes in Fund
Balance - Budget and Actual A -2 50
Schedule of Revenues & Other Financing
Sources - Budget and Actual S -1 51-52
Schedule of Expenditures & Other S -2 53-57
Financing Uses - Budget and Actual '
Special Revenue Funds:
Combining Balance Sheet B -1 59-60
Combining Statement of Revenues,
Expenditures and Changes in Fund
B -2 61 - 62
Balances
Statement of Revenues, Expenditures and '
Changes in Fund Balance - Budget and Actual
Housing and Redevelopment Authority Fund B -3 63
of Revenues Statement Expenditures and p
Changes in Fund Balance - Budget and Actual '
Economic Development Authority Fund B -4 64
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Earle Brown Tax Increment Financing District Fund B -5 65
Statement of Revenues, Expenditures and ,
Changes in Fund Balance - Budget and Actual
Tax Increment District No. 3 Fund B -6 66 ,
iii
Center Minnesota
City of Brooklyn ,
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Tax Increment District No. 4 Fund B -7 67
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Police Drug Forfeiture Fund B-8 68
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Community Development Block Grant Fund B -9 69
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
City Initiatives Grant Fund B -10 70
Debt Service Funds:
Combining Balance Sheet C -1 72
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C -2 73
Capital Projects Funds:
Combining Balance Sheet D -1 75
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D -2 76
Project- Length Schedule of Construction
Projects - Capital Improvements Fund S -3 77
Project- Length Schedule of Construction Projects
- Municipal State Aid for Construction Fund S -4 78
Project- Length Schedule of Construction Projects
- Special Assessment Construction Fund S -5 79
Enterprise Funds:
Combining Balance Sheet E -1 81 -82
iv
' City of Brooklyn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Combining Statement of
Revenues, Expenses and
Changes in Retained Earnings E -2 83-84
Combining Statement of Cash Flows E -3 85-86
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Municipal
Liquor Fund E -4 87
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Golf
Course Fund E -5 88
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Earle
Brown Heritage Center Fund E -6 89
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Recycling
and Refuse Fund E -7 90
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Water
Utility Fund E -8 91
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Sanitary
Sewer Fund E 92
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Storm '
Drainage Fund E -10 93
Internal Service Funds:
Combining Balance Sheet F -1 95
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings F -2 96
v
' City of Brooklyn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001
TABLE OF CONTENTS
r Statement/
Schedule Page
Number Number
Combining Statement of Cash Flows F -3 97
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
by Source S -6 99
Schedule of General Fixed Assets
by Function and Activity S -7 100
Schedule of Changes in General Fixed Assets
by Function and Activity S -8 101
General Long -Term Debt Account Group:
Comparative Statement of General
Long -Term Debt G 103
Summary of Debt Service Requirements
to Maturity H 104
III. STATISTICAL SECTION Table Page
Number Number
General Governmental Expenditures by Function 1 106
General Governmental Revenues and Other
Financing Sources by Source 2 107
Tax Levies and Tax Collections 3 108
Assessed Value and Estimated Market Value of All
Taxable Property 4 109
Direct and Overlapping Tax Rates and Tax Levies 5 110
Special Assessment Billings and Collections
6 111
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 7 112
vi
of Brooklyn Center Minnesota ,
Cit y y ,
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 2001
TABLE OF CONTENTS ,
Table Page
Number Number
Computation of Legal Debt Margin 8 113
Computation of Direct and Overlapping Debt 9 114 '
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Fund
Expenditures 10 115
Schedule of Revenue Bond Coverage 11 116
Property Value and Construction 12 117
Principal Taxpayers 13 118
Schedule of Insurance Coverage 14 119-120 '
Demographic Statistics 15 121
Miscellaneous Statistical Facts 16 122-123
i
1
vii
i
1
City of Brooklyn Center
CITY OFFICIALS
For the Year Ended December 31, 2001
ELECTED OFFICIALS
Term of Office Term Expires
Mayor Myrna Kragness Four Years 12/31/2002
Councilmember Kay Lasman Four Years 12/31/2004
Councilmember Ed Nelson Four Years 12/31/2002
Councilmember Robert Peppe Four Years 12/31/2004
Councilmember Tim Ricker Four Years 12/31/2002
APPOINTED OFFICIALS
City Manager Michael J. McCauley y a gr
Asst. City Manager /H.R. Director Jane Chambers
City Clerk Sharon Knutson
City Treasurer Douglas Sell
City Attorney Kennedy & Graven
City Prosecutor Carson & Clelland
Department Heads:
Community Activities, Recreation & Services James Glasoe
Community Development Brad Hoffman
Fiscal and Support Services Douglas Sell
Fire /Emergency Preparedness Ronald Boman
Police Joel Downer
Public Works Diane Spector
Assessing Nancy Wojcik
City Engineer Todd Howard
Civil Defense Coordinator Ronald Boman
Fire Marshall Ronald Boman
Health Officer Duane Orn, M.D.
■ Liquor Stores Jeanne Mueller
Public Works Superintendent Dave Peterson
t
City of Brooklyn Center Organization
2001
ELECTORATE
City Council Advisory
Commissions
ADMINISTRATION I
- Purchasing
City Attorney City Manager - Co Human Resources
mmunications
-Mgmt. Info. Systems
- Elections
- Licenses
-City Clerk
1
PUBLIC WORKS \ POLICE DEPARTMENT I I FISCALAND COMMUNITY ACTIVITIES,
I FIRE DEPARTMENT
SUPPORT SERVICES RECREATION, AND SERVICES COMMUNITY DEVELOPMENT
- Engineering - Patrol ENTERPRISE
Street Main' I - Investigation - Accounting - Community Programs - Inspections
Sanitary Sewer
Fire Prevention me Prevention Audit Cr - Recreation Programs Economic Development Authority - Liquor
Fire Suppression - Housin & Redevelo Redevelopment Authorit i - Herita e Center
Central Garage Community Programs Utility Billing Community Center g p y 9
Emergency Preparedness
Storm Sewer - Support Services -Risk Management -Gov't Bldgs - Zoning
-Water Dept j j - Dispatch I - Assessing -Golf Course ` - Planning
-Park Maint - Senior Transportation
N
rr r■r rr rr rr r r rr rr +r� rr rr ■r rr r� rr rr rr rr
City of Brooklyn Center
A Millennium Community
May 3, 2002
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn
Center for the fiscal year ended December 31, 2001. Minnesota Statutes and City Charter,
Section 7.12, require that the financial statements of the City of Brooklyn Center be audited
by the State Auditor or a certified public accountant selected by the City Council. This
requirement has been complied with by the engagement of the firm of Deloitte & Touche
LLP and their report is included in the financial section of this report.
This report has been prepared following the guidelines recommended by the Government
Finance Officers Association of the United States and Canada. The Government Finance
Officers Association awards Certificates of Achievement for Excellence in Financial
Reporting to those governments whose Comprehensive Annual Financial Reports are
judged to conform substantially with high standards of public financial reporting, including
generally accepted accounting principles promulgated by the Governmental Accounting
Standards Board. Our financial reports for the past fourteen years have received this
award. It is my belief that the accompanying report meets program standards, and it will be
submitted to the Government Finance Officers Association for review.
Respec sub itt ,
Michael
J. Mc ley
City Manage
• s
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 3
FAX (763) 569 -3494
T City of Brooklyn Center
A Millennium Community
May 3, 2002
Mr. Michael J. McCauley
City Manager
City of Brooklyn Center
Dear Mr. McCauley:
The comprehensive annual financial report of the City of Brooklyn Center (the City) for the
fiscal year ended December 31, 2001 is hereby submitted. Responsibility for both the
accuracy of the data and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data
are accurate in all material respects and are reported in a manner designed to present
fairly the financial position, results of operations, and cash flows of the various funds and
account groups of the City. All disclosures necessary to enable the reader to gain an
understanding of the government's financial activities have been included.
The comprehensive annual financial report is presented in three sections: introductory,
financial, and statistical. Included in the introductory section is this transmittal letter, the
government's organizational chart and a list of principal officials. The financial section
includes the general purpose financial statements and the combining and individual fund
and account group financial statements and schedules, as well as the independent
auditors' report on the general purpose financial statements. The statistical section
includes selected financial and demographic information, generally presented on a multi
year basis.
The City is required to comply with the provisions of the Single Audit Act Amendments of
1996 and the U.S. Office of Management and Budget Circular A -133, "Audits of States,
Local Governments, and Non - Profit Organizations." This requires a single audit when
expenditures of federal grants exceed $300,000 in one year. Expenditures of federal
grants were less than $300,000 during the year ended December 31, 2001; therefore, no
single audit was required for the year ended December 31, 2001.
REPORTING ENTITY
The financial reporting entity includes all funds and account groups of the primary
government (i.e., the City of Brooklyn Center as legally defined), as well as all of its
component units. Component units are legally separate entities for which the primary
government is financially accountable.
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 4
FAX (763) 569 -3494
Blended component units, although legally separate entities, are, in substance, part of the
primary government's operations and are included as part of the primary government.
Accordingly, the Economic Development Authority and the Housing and Redevelopment
Authority are reported as special revenue funds of the City of Brooklyn Center.
The City provides a full range of municipal services including public safety (police and fire),
streets, sanitation, social services, culture- recreation, public improvements, planning and
zoning, and general administrative services. The City operates an off -sale liquor store, a
public water, sewer, recycling and storm drainage utility, a golf course, and a convention
center known as the Earle Brown Heritage Center.
ECONOMIC CONDITION AND OUTLOOK,
The City of Brooklyn Center is a northern suburb of the Minneapolis /St. Paul metropolitan
area, lying adjacent to the City of Minneapolis and located 10 miles from downtown
Minneapolis. The City is wholly within Hennepin County and encompasses an area of
approximately 8.5 square miles. The Mississippi River forms the City's eastern boundary.
The City experienced its most rapid growth from 1950 to 1970 when the City's population
grew from 4,300 to its peak of 35,173. The 2000 Census data for the City was 29,172, a
slight increase from the 1990 Census data of 28,887. The number of housing units has
remained stable at 11,430 units; there were 11,704 housing units in 1990. There were 4
✓� new housing units constructed in 2001.
The estimated market value of property within the City increased 12.39% in 2001 over
' 2000 and it increased 12.46% in 2000 over 1999. The City Assessor reports that
residential values are continuing to show increases -in early 2002 although
commercial /industrial values are less robust. Strong demand for starter homes has
continued to drive up values of residential property in the City. Major transportation routes
in and through the City, including Interstates 94 and 694, and State Highways 100 and 252,
have provided a continued impetus for development of a strong commercial tax base in the
City along and adjacent to these corridors.
Commercial and industrial properties comprise 40.55% of the City's taxable net tax
capacity. The largest commercial property in the City is Brookdale Mall, a 1,000,000
square -foot regional shopping center anchored by Marshall Fields, Sears, J.C. Penney's,
and Mervyn's of California. Other retail shopping centers in the City include Brookdale
Square, a 125,000 square -foot strip center; Shingle Creek Center, a 157,000 square -foot
building anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored
by Best Buy. Other freestanding retail establishments include Kohl's Department Store,
' Cub Foods Supermarket, and Rainbow Supermarket. The Brookdale Corner retail
development, with a Cub Foods Supermarket and small retail shops, has enhanced the
area surrounding the Brookdale Mall. The City's municipal liquor store is located in this
newly developed area.
5
New construction projects in 2001 include a new industrial building in the France Avenue
Business Park for $3,937,790; an addition to Evergreen Park Elementary School for
$1,363,995; Franz Repo office building for $1,266,045; a new showroom for Brookdale
Dodge for $1,000,000 and the completion of the Brookpark Dental building for $892,000.
Other commercial and industrial remodeling projects include Brookdale Mall projects for
$19,301,180; Brooklyn Center Community Center for $3,317,999; Medtronic for
$2,692,640; Traveler's Express tenant improvements for $697,375 and U.S. West alarm
and generator replacements for $638,000.
The convergence of highways in Brooklyn Center and the close proximity to downtown
Minneapolis make the City an attractive site for hotels and motels. Establishments now
operating in the City include Americlnn, Baymont Inn, Comfort Inn, Country Inn & Suites,
Extended StayAmerica, Hilton Hotel, Holiday Inn, Motel 6, and Super 8 Motel.
MAJOR EVENTS OF 2001
Brooklyn Center is a mature, developed suburb that is working to revitalize itself. With its
affordable housing, excellent schools, beautiful parks, and convenient access, it has the
potential to continue to be a vibrant community for many years to come. The revitalization
of Brooklyn Center is proceeding on three tracks: replacement and renewal of the
commercial areas of the City; replacement and enhancement of its aging streets, utilities,
and parks; and the reinvigoration of neighborhoods.
The City continued its redevelopment effort in the Brooklyn Boulevard and 69th Avenue
area with the completion of acquisition and demolition of properties on the northeast
corner. This approximately 5.2 acre site contained some of the older commercial property
along Brooklyn Boulevard. The City's Economic Development Authority has entered into a '
development agreement with a private developer for construction of a neighborhood retail
center on the property. The project is scheduled to begin in the spring of 2002.
Y
Redevelopment of the Joslyn pole and site located in the southwest corner of the City
p Y p
continued in 2001. In September, a 109,588 square foot industrial building was completed,
adding to the 203,000 square foot building completed in 1999. This former Environmental
Protection Agency Super Fund site is being privately developed with financial assistance
provided for the cleanup from the State of Minnesota and the Metropolitan Council. Tax
increment financing is being provided by the City to facilitate the development through
public improvements such as streets and storm water management amenities.
Construction on the third phase of the project is anticipated in the near future.
As part of a planned replacement of the aging infrastructure, the City is in the process of
completing several major street and utility improvements. These improvements were
funded by general obligation improvement bonds supported with special assessments
against benefited properties, an operating transfer from the general fund, and funds from
the capital projects funds and utility enterprise funds. About one twenty -fifth of the City's
streets and utilities are reconstructed each year. It is expected that this will be a perpetual
process, since at the end of twenty -five years, it will be necessary to begin the process
anew with the streets that were done first. An additional benefit of these neighborhood
projects has been the increased interest by residents and their efforts to paint, repair,
6
I�
landscape and further enhance their properties.
In 1997, Equitable Real Estate sold Brookdale Mall to Talisman Brookdale, LLC.
Brookdale Mall is one of seven regional shopping centers in the seven county metropolitan
area. With a new owner and cooperation of existing tenants, more than $40 million is
being invested to remodel and expand the current facility. Additionally, several tenants are
investing in upgrades to the fagade and interior spaces to accomplish a complete
renovation. Several new tenants such as Old Navy and Barnes and Noble have been
added as part of the renovation. They will enhance the Mall's customer drawing ability and
will add significantly to the local tax base.
FINANCIAL INFORMATION
Management of the City is responsible for establishing and maintaining internal controls
designed to ensure that the assets of the City are protected from loss, theft or misuse and
to ensure that adequate accounting data are compiled to allow for the preparation of
financial statements in conformity with generally accepted accounting principles. Internal
controls are designed to provide reasonable, but not absolute, assurance that these
objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a
control should not exceed the benefits likely to be derived; and (2) the valuation of costs
and benefits requires estimates and judgments by management.
In addition, the City maintains budgetary controls. The objective of these budgetary
controls is to ensure compliance with legal provisions embodied in the annual budget
appropriation approved by the City's governing body. Activities of the General Fund and
t special revenue funds are included in the annual appropriated budget. Project - length
financial plans are adopted for the Capital Projects Funds. The level of budgetary control
(that is, the level at which expenditures cannot exceed the appropriated amount without
budget amendment by the City Council) is established by department for the General Fund
and at the aggregate fund level for all other governmental funds that adopt annual budgets.
Appropriations lapse at year -end and generally are not re- appropriated in the following
year's budget.
As demonstrated by the statements and schedules included in the financial section of this
report, the City continues to meet its responsibility for sound financial management.
i
7
i
GENERALFUND
The following schedule presents a summary of general fund budgeted revenues for 2002,
and actual revenues for the fiscal year ended December 31, 2001 compared to 2000.
General Fund Revenues and Other Financing Sources
2001 Increase
2002 2001 2000 (Decrease)
Budget Actual Actual from 2000
Taxes $10,658,829 $8,469,023 $8,703,772 $(234,749)
Reserve for tax abatements (57,510) 41,400 (98,910)
Licenses & permits 565,485 788,629 632,549 156,080
Intergovernmental revenue 2,769,840 4,135,282 4,076,169 59,113
Charges for services 605,267 688,453 779,060 (90,607)
Court fines 190,000 230,408 180,676 49,732
Investment and other
Miscellaneous revenues 365,000 697,886 234,740 463,146
Total $ _$14,95 $14,648,366 $ 303,805
Revenues and other financing sources for the General Fund totaled $14,952,171 in 2001,
an increase of $303,805 from the previous year. From the table above, it is apparent that
the major sources of revenue available for funding of general governmental functions are
taxes and intergovernmental revenue, which, when combined, provided 84% of the total
revenues. The principal sources of intergovernmental aid to the City are homestead and
agricultural credit aid of $1,380,106 and local government aid of $2,179,744. The
decrease in intergovernmental revenue budgeted in 2002 is due to State legislation
increasing the property tax burden for cities in exchange for increasing State aid to K -12
education. Homestead and agricultural aid is eliminated in 2002. I�
In response to potential property tax abatements, the City has established a tax abatement
reserve in the General Fund. Since the early 1990's, City management has estimated the
potential future abatements on large commercial properties. The City increased the
reserve in the General Fund by $57,510 in 2001. The balance in the reserve in the
General Fund was $266,343 and $208,833 on December 31, 2001 and 2000, respectively.
City management estimates that potential tax abatements not covered by the reserve
would not materially affect the finances of the City.
The large increase in investment and other revenues is primarily due to the reversal of an
investment writedown taken in 2000. In March 2001, the City received the full proceeds of
a defaulted issue. The increase in license and permit revenues is attributed to an increase
in construction and remodeling activity. As noted above, some individual large -scale
projects were undertaken during 2001.
8
'i
The following schedule presents a summary of general fund budgeted expenditures for
2002, and actual expenditures for the fiscal year ended December 31, 2001, compared to
2000.
I�
General Fund Expenditures and Other Financing Uses
2001 Increase
2002 2001 2000 (Decrease)
Budget Actual Actual from 2000
General Government $2,570,716 $2,504,392 $2,421,762 $82,630
Public Safety 6,322,412 5,660,600 5,437,360 223,240
Public Works 2,063,184 2,142,064 2,100,865 41,199
Community Service 103,419 106,034 95,148 10,886
Parks and Recreation 2,283,122 2,205,018 2,216,098 (11,080)
Economic Development 342,000 392,805 397,507 (4,702)
Non departmental 606,582 372,056 419,789 (47,733)
Admin. Services Reimb. (782,684) (767,504) (795,737) 28,233
Other Financing Uses 1,645,670 1,661,877 1,532,238 129,639
Total $15,154,421 $14,277,342 $13,825,030 $452,312
Total expenditures and other financing uses in 2001 increased b a total of $452,312 over
a g Y
2000, a 3.27% increase. Salaries and benefits account for $186,918 of the increase, due
primarily to the 3% wage adjustment for most employees. Additionally, other financing
uses increased $129,639, reflecting a budgeted transfer to the Capital Projects Fund for
Civic Center improvements. Finally, the increase in public safety expenditures reflects
market influences that resulted in higher wages, less than historical turnover resulting in
less unpaid time for temporarily vacant positions, and less use of unpaid leave time.
The General Fund transferred $409,044 to the Special Assessment Construction Fund for
infrastructure replacement. This transfer allows the City to pay cash for street
improvements instead of borrowing through a bond issue for construction costs that would
be supported with an additional property tax. The City anticipates this transfer to continue
in the future as part of the planned replacement of the City's aging infrastructure.
The General Fund had an excess of revenues and other financing sources over
expenditures and other financing uses of $674,829 in 2001; the excess in 2000 was
$823,336. Contributing to the excess, a large portion of the increase in revenues is due to
the reversal of an investment writedown taken in 2000. Consequently, investment revenue
exceeded budgeted amounts by $313,829. License and permit revenues were also
$232,464 higher than budgeted as a result of increased construction activity.
� � 9
GENERAL FUND BALANCE
As of December 31, 2001, the fund balance of the General Fund totaled $7,433,872. This
ending fund balance is the equivalent of approximately six months of budgeted
expenditures for the 2002 budget. Property taxes and intergovernmental revenue
represent 84% of the budgeted general fund revenue for 2002. The State of Minnesota
has structured city finances so most of these revenues are received in the second half of
the fiscal year. Minnesota cities typically receive as little as 10% of their total revenues in
the first six months of the year. In recognition of this fact, a major portion of the fund
balance is being designated for working capital.
The Financial Management Policies adopted by the City Council on June 8, 1992
established a formula for determining a minimum level of fund balance to be maintained in
the General Fund. Major elements of the formula include coverage of assets not readily
convertible to cash and a provision for working capital equal to 45% of the next year's
General Fund budget. The Financial Management Policies go on to state that no more that
50% of any year's surplus over the minimum level shall be committed to other uses in that
year.
Calculation of this formula on the fund balance in the General Fund as of December 31,
2000 revealed a surplus of $1,387,234 above the minimum requirements that is available
for other uses. This allowed the transfer of up to $693,617 to other funds.
The City Council passed a resolution transferring $468,000 of surplus funds from the
General Fund to the Capital Improvements Fund for future government building and park
improvements and $225,000 to the Special Assessment Construction Fund for future street
improvements. These appear in the financial statements as equity transfers since they
relate to the prior year's surplus.
EARLE BROWN FARM TAX INCREMENT DISTRICT,
This tax increment financing (TIF) district had a deficit fund balance as of December 31, !�
2001. It is caused by a series of reductions in property tax class rates made by the State
of Minnesota, which have eroded the revenue base for TIF districts throughout Minnesota.
Borrowing from other City funds is required in order for the district to meet its obligations. If
the current situation continues, the district will experience annual deficits. The TIF district
will make its last transfer to the Debt Service Funds in the year 2003. It has the authority to
continue to exist and collect tax increments through the year 2008. Two years of tax,
collections beyond 2003 should be sufficient to repay all internal borrowing.
10
I �
ENTERPRISE OPERATIONS
The City's enterprise operations are composed of seven separate and distinct activities:
Liquor store, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary
Sewer utility, and Storm Drainage utility.
The liquor store operation has gradually been consolidated into one location. The
remaining store operates in a leased facility adjacent to the new Cub Foods Supermarket.
The City had operated three stores in the past. This past year was another transition year
for the liquor operation as a formerly leased store was vacated and consolidated with the
new location. Revenue levels for the new site have matched the aggregate level of
revenues of three former locations. The operating results for 2001 are in line with results
prior to the transition year of 2000.
Centerbrook Golf Course is a nine -hole, par three golf course owned and operated by the
City. Green fees have been increasing each year to keep pace with inflation and the cost
of operations. An interfund loan used to build the golf course is being repaid over a
planned schedule covering twenty years. The business is increasingly competitive with
many new courses being added within the area. Poor weather in 2001 pressured revenues
and net income.
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 City's policy for this enterprise is to set fees and user charges at a level that
allows the operation to break -even excluding depreciation on contributed assets. That
standard was met in 2001. To improve operating results, the bed and breakfast operation
was changed during the year by eliminating individual room rentals and tying room rentals
to other events requiring all rooms to be rented, as it was not economically feasible to
profitably operate a lodging facility with only ten rooms.
The dwindling supply of landfill space for the disposal of solid waste continues to be a
major concern in Minnesota. State and county mandated goals for the diversion of solid
waste to recycling programs took effect in 1989. In response, the City opened a Recycling
and Refuse Fund as an enterprise fund. Thus far, the City is only operating a recycling
program in cooperation with several neighboring communities. Expansion into solid waste
collection would only take place if there are clear advantages to be achieved. Recycling
participation levels should increase with a recent change in collection policy. Customers
are no longer required to sort certain recyclable items as all recyclable items can be placed
into a single container for sorting by the recycling collection entity at a central location.
The Water and Sanitary Sewer utilities are largely developed and already reach all parts of
the City. During 2001, 1.3 billion gallons of water were supplied through 115 miles of water
main from the City's nine wells and 1.1 billion gallons of sewage flowed through the City's
105 miles of sewer mains. Rates for both water and sanitary sewer are reviewed annually
and are increased as needed to provide for increased operating costs, debt and capital
outlays. Three - fourths of the sewer operating expenses are fees paid to the Metropolitan
Council Environmental Services for contracted sewage treatment. Planned rate increases
11
should be sufficient to keep both funds profitable. Mains and customer service lines are ,
being replaced as needed concurrent with the City's 25 -year program for reconstructing
infrastructure. Security of the City's water system was reviewed after the September 11,
2001 activities and was found to be very secure.
During the 1980's, the State of Minnesota passed legislation that requires cities to take
t rm water runoff. In response to this, the City
greater responsibility f r controllin o p
o
9 9 s
created a Storm Drainage Utility Fund. Fees to property owners to support operations,
maintenance and capital improvements are based on the amount of water runoff from the
properties. The fees vary according to the size and absorption characteristics of the
p rY 9
respective properties. Construction of storm sewer lines has been incorporated into the
City's 25 -year program for reconstructing infrastructure.
INTERNAL SERVICE FUNDS,
The Central Garage Fund was established to own and maintain all operating vehicles and
equipment of the City valued over $10,000. At present, the fund maintains over 150 pieces
of rolling and non rolling stock with a net book value of $2,866,874. Equipment
maintenance, repair and fuel are charged based on usage. Replacement costs are
provided from rental rates which the Central Garage Fund charges City operating
departments for the use of the equipment.
The Public Employees Retirement Fund was established to provide certain health care
d assets of
benefits for qualifying City employees who retire before age 65. The fund had
$1,549,818 at year -end. The liability of the City is analyzed on an annual basis.
A new fund, the Public Employees Compensated Absences Fund, was added in 2001.
The fund will account for liabilities to the City resulting from the accrual of vacation and sick
Departments are
leave time earned b City employees. The liability is fully funded. p
Y Y Y
charged for any increase in the liability for its employees on an annual basis.
DEBT ADMINISTRATION
At December 31, 2001, the City had fourteen debt issues outstanding. These issues
include $8,105,000 of general obligation bonds, $6,150,000 of general obligation special
assessment debt, $860,000 of general obligation revenue bonds and $7,690,000 of
general obligation tax increment bonds. The City maintained its A -1 rating from Moody's
Investors Service.
The City issued $730,000 of bonds supported solely by special assessments during 2001.
The special assessment bond issue provided financing for various infrastructure
improvement projects in the City.
12
I �
CASH MANAGEMENT
The Finance Department keeps abreast of current trends and procedures for cash
management and forecasting so as to ensure efficient and profitable use of the City's cash
resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter
118A.
Interest earned during 2001 amounted to $3,073,862 compared to $1,123,714 during
2000. Changes in the fair value of investments increased 2001 earnings by $1,553,780;
they decreased 2000 earnings by $708,285. The large change in fair value is attributed to
the reversal of a writedown in 2000 of a defaulted commercial paper issue. The City has
historically held all investments to maturity. Therefore unless the City liquidates the
investment(s) prior to maturity, it is expected that the change in fair market value is
temporary and will be reversed in future periods.
t
The City adopted a written investment policy m 1990 and adopted an updated policy in
2001. The policy's objectives are to minimize credit and market risk, provide needed
liquidity, and maintain a competitive yield on the portfolio. Revisions to the policy in 2001
preclude the City from purchasing individual commercial paper issues. Commercial paper
can only be purchased through a brokerage as part of a professionally managed fund.
All deposits were either insured by federal depository insurance or collateralized.
Investment securities are held in a custody arrangement with a bank trust department. All
investments are listed in the lowest custodial credit risk category, Category 1. Cash and
investment balances from all funds are combined and invested to the extent available in
authorized investments. Earnings from securities are allocated to the various funds in
proportion to their relative cash book balances.
The City has not purchased any collateralized mortgage obligations, derivatives, or strip
investments. In the recent past, the City has not needed to use any short-term debt and
does not anticipate such a need in the future. Of the City's portfolio as of December 31,
2001, 40% matures within 1 year, another 52% in the second year and the last 8% by the
eighth year.
RISK MANAGEMENT
The City insures for all significant risks. A schedule of such insurance is included in the
Statistical Section.
INDEPENDENT AUDIT
The City Charter and State Statutes require the City Council to provide for an audit of the
financial transactions of the City. Deloitte & Touche LLP has been retained for that
purpose and their unqualified opinion has been included in this report.
13
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of
Brooklyn Center for its comprehensive annual financial report for the fiscal year ended
December 31, 2000.
The City of Brooklyn Center was first awarded a Certificate of Achievement for Excellence
in Financial Reporting for its 1966 fiscal year report and has received a total of 23
certificates, including 18 consecutive certificates for the years 1983 through 2000. In order
to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a
governmental unit must publish an easily readable and efficiently organized comprehensive
annual financial report; its contents must conform to program standards. Such reports
must satisfy both generally accepted accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to Certificate of Achievement Program requirements and we
are submitting it to GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
We want to express our appreciation to all City staff for the assistance provided during the
audit. We also wish to express our appreciation to the Mayor, members of the City
Council, and the City Manager for their continued interest and support in planning and
conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
ADougglas
Director of Fiscal & Support Services
Robert Sundberg
Assistant Director of Finance
14
C ertif icate o
Ac
f or Exc
in Fina
•
Rep orti ng
Presented to
City of Brook Center,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
� NIT T r i 'lp h�
�NITEO STATES �p
AND 0 000t
y s CANADA President
y CORPORATION
��NICA�'
Executive Director
Deloitte &Touche LLP
400 One Financial Plaza
120 South Sixth Street
Minneapolis, Minnesota 55402 -1844
Tel: (612) 397 -4000
Fax: (612) 397 -4450
www.deloitte.com Deloitte
& Touche
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of the
City Council of the City of Brooklyn Center, Minnesota
We have audited the accompanying general purpose financial statements of the City of Brooklyn Center, Minnesota
(the City) as of December 31, 2001 and for the year then ended, listed in the foregoing table of contents. These
general purpose financial statements are the responsibility of the management of the City. Our responsibility is to
express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the general purpose financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose
financial statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, such general purpose financial statements present fairly, in all material respects, the financial
position of the City as of December 31, 2001 and the results of its operations and the cash flows of its proprietary
fund types for the year then ended, in conformity with accounting principles generally accepted in the United States
of America.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as
a whole. The combining and individual fund and account group financial statements and schedules listed in the
foregoing table of contents are presented for the purpose of additional analysis and are not a required part of the
general purpose financial statements of the City. These financial statements and schedules are also the responsibility
of the management of the City. Such additional information has been subjected to the auditing procedures applied in
our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects when
considered in relation to the general purpose financial statements taken as a whole.
The statistical data on pages 106 - 123 are presented for the purpose of additional analysis and are not a required part
of the general purpose financial statements of the City. Such additional information has not been subjected to the
auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no
opinion on it.
In accordance with Government Auditing Standards, we have also issued our report dated May 3, 2002, on our
consideration of the City's internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering
the results of our audit.
AA&
May 3, 2002
Deloitte
Touche 1
Tohmatsu
City of Brooklyn Center, Minnesota
GENERAL PURPOSE FINANCIAL STATEMENTS
The general purpose financial statements are intended to provide a financial overview of
municipal operations. These reports are at a summary level and include those data
needed to control and analyze current operations to determine compliance with legal and
budgetary limitations and to assist in the financial planning process.
17
City of Brooklyn Center
COMBINED BALANCE SHEET
All Fund Types and Account Groups
December 31, 2001
Governmental Fund Types
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS,
Assets:
Cash and cash equivalents (Notes IF, 2) $5,060,325 $2,840,392 $4,596,407 $3,873,515
Investments (Notes 1F, 2) 3,309,529 1,856,007 863,930 2,533,055
Receivables:
Accounts 67,160 9,021 2,878
Delinquent taxes (Note 1J) 263,126 13,602 101,718 1,893
Special assessments 3,428,179 198,209
Due from other funds (Note 9) 502,447
Due from other governments 65,190 192,952 13,803 462,067
Inventories and supplies (Note 1G)
Prepaid expenses
Advances to other funds (Note 9) 105,074 1,543,069
Fixed assets, net (Notes 1 C, 3)
Other Debits:
Amount available in Debt Service Funds
Amount to be provided for General Long -Term Debt
Total Assets and Other Debits $8,870,404 $5,414,421 $9,004,037 $8,614,686
LIABILITIES. EQUITY AND OTHER CREDITS,
Liabilities:
Accounts payable $508,939 $328,752 $1,626 $996,382
Contracts payable 40,000
Due to other funds (Note 9) 502,447
Accrued salaries and wages 335,501 7,130 5,959
Accrued vacation & sick pay (Note 1 H)
Accrued health insurance
Accrued interest payable
Advances from other funds (Note 9) 698,143
Deferred revenue (Note 1J) 592,092 13,602 3,529,897 691,853
General obligation bonds payable (Note 6)
Other long -term liabilities (Note 6)
Special assessment bonds with governmental commitment (Note 6)
Revenue bonds payable (Note 6)
Total Liabilities 1,436,532 1,550,074 3,531,523 1,734,194
Equity and Other Credits:
Contributed capital (Note 4)
Investment in general fixed assets
Retained earnings: (Notes 8 & 10)
Reserved
Unreserved
Fund Balances: (Notes 8 & 10)
Reserved 105,074 5,472,514 1,543,069
Unreserved:
Designated 6,437,653
Undesignated 891,145 3,864,347 5,337,423
Total Equity and Other Credits 7,433,872 3,864,347 5,472,514 6,880,492
Total Liabilities, Equity and Other Credits $8,870,404 $5,414,421 $9,004,037 $8,614,686
(See notes to financial statements) 18
EXHIBIT 1
Totals
Proprietary Fund Types Account Groups (Memorandum Only)
' General General
Internal Fixed Long -Term December 31,
Enterprise Service Assets Debt 2001 2000
$2,394,189 $3,848,946 $22,613,774 $9,557,149
1,561,020 2,516,990 12,640,531 23,235,826
1,461,809 10,379 1,551,247 1,466,179
34,269 414,608 62,201
227,163 3,853,551 4,047,960
21,315 523,762 223,929
115,146 849,158 1,610,121
316,766 13,258 330,024 408,554
132,559 132,559 122,818
1,648,143 1,698,143
48,146,702 2,866,874 $28,006,847 79,020,423 75,207,392
$5,472,514 5,472,514 4,736,609
16,476,649 16,476,649 19,304,211
$54,410,938 $9,256,447 $28,006,847 $21,949,163 $145,526,943 $141,681,092
$748,475 $16,066 $2,600,240 $2,345,470
93,302 133,302 81,103
21,315 523,762 223,929
51,961 9,001 409,552 441,345
733,221 733,221 790,167
1,549,681 1,549,681 1,423,243
1 18,833 18,833 22,795
950,000 1,648,143 1,698,143
4,827,444 4,224,260
$15,795,000 15,795,000 17,900,000
4,163 4,163 77,122
6,150,000 6,150,000 6,120,000
860,000 860,000 1,050,000
2,743,886 2,307,969 21,949,163 35,253,341 36,397,577
22,295,175 2,931,171 25,226,346 25,622,823
$28,006,847 28,006,847 25,324,975
' 501,532 501,532 433,176
28,870,345 4,017,307 32,887,652 30,018,102
7,120,657 7,412,371
6,437,653 6,097,387
10,092,915 10,374,681
51,667,052 6,948,478 28,006,847 110,273,602 105,283,515
$54,410,938 $9,256,447 $28,006,847 $21,949,163 $145,526,943 $141,681,092 19
City of Brooklyn Center EXHIBIT 2
All Governmental Fund Types
For the Year Ended December 31, 2001
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 2001 2000 1
Taxes and special assessments $8,411,513 $4,144,215 $1,205,378 $102,172 $13,863,278 $13,586,195
Licenses and permits 788,629 788,629 632,549
Intergovernmental 4,135,282 1,343,486 295,745 50,000 5,824,513 7,899,522
Charges for services 688,453 688,453 779,060
Court fines 230,408 230,408 180,676
Investment earnings 345,438 192,359 121,235 361,259 1,020,291 1,288,880
Change in fair value of investments 328,391 207,173 99,968 426,857 1,062,389 (490,651)
Miscellaneous 24,057 113,904 12,408 150,369 125,012
Total Revenues 14,952,171 6,001,137 1,722,326 952,696 23,628,330 24,001,243
Expenditures
Current:
General government 2,504,392 2,504,392 2,429,196
Public safety 5,660,600 11,498 5,672,098 5,453,143
Public works 2,142,064 2,142,064 2,100,865
Community services 106,034 106,034 95,148
Parks and recreation 2,205,018 187,150 2,392,168 2,344,768
Economic development 392,805 1,972,927 2,365,732 2,763,028
Non departmental 372,056 372,056 419,789
Administrative Services Reimbursement (767,504) (767,504) (795,737)
Capital outlay 1,188,882 5,369,295 6,558,177 7,275,675
Debt service:
Principal retirement 2,805,000 2,805,000 3,970,000
Interest and fiscal charges 173,024 1,158,554 7,515 1,339,093 1,295,938
Total Expenditures 12,615,465 3,533,481 3,963,554 5,376,810 25,489,310 27,351,813
Excess or Deficiency( -) of Revenues I�
Over Expenditures 2,336,706 2,467,656 (2,241,228) (4,424,114) (1,860,980) (3,350,570)
Other Financing Uses( -) or Sources
Proceeds from sale of bonds 730,000 730,000 735,000
Sale of fixed assets 572,266 572,266 194,491
Operating transfers in 166,807 2,977,133 980,244 4,124,184 5,479,120
Operating transfers out (1,661,877) (2,136,807) (3,798,684) (5,404,122)
Total Other Financing Uses( -) or Sources (1,661,877) (1,397,734) 2,977,133 1,710,244 1,627,766 1,004,489
Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses 674,829 1,069,922 735,905 (2,713,870) (233,214) (2,346,081)
Fund Balances January 1 7,452,043 2,794,425 4,736,609 8,901,362 23,884,439 26,230,520
Equity Transfers (Out) In (693,000) 693,000
Fund Balances December 31 $7,433,872 $3,864,347 $5,472,514 $6,880,492 $23,651,225 $23,884,439
(See notes to financial statements)
20
1
' EXHIBIT 3
City of Brooklyn Center
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
' AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
General and Special Revenue Funds
For the Year Ended December 31, 2001
' General Fund Special Revenue Funds
Actual Over Actual Over
' Under( -) Under( -)
Budget Actual Budget Budget Actual Budget
Revenues
Taxes and special assessments $8,558,675 $8,411,513 ($147,162) $4,364,080 $4,144,215 ($219,865)
' Licenses and permits 556,165 788,629 232,464
Intergovernmental 4,129,753 4,135,282 5,529 409,896 1,343,486 933,590
Charges for services 622,045 688,453 66,408
' Court fines 185,000 230,408 45,408
Investment earnings 360,000 345,438 (14,562) 63,000 192,359 129,359
Change in fair value of investments 328,391 328,391 207,173 207,173
Miscellaneous 12,000 24,057 12,057 33,970 113,904 79,934
' Total Revenues 14,423,638 14,952,171 528,533 4,870,946 6,001,137 1,130,191
EXDendltures
General government 2,443,879 2,504,392 60,513
Public safety 5,769,431 5,660,600 (108,831) 24,970 90,096 65,126
Public works 2,083,822 2,142,064 58,242
Community services 106,035 106,034 (1)
Parks and recreation 2,267,089 2,205,018 (62,071) 150,000 187,413 37,413
Economic development 342,000 392,805 50,805 1,018,116 3,255,972 2,237,856
' Non - departmental 480,517 372,056 (108,461)
Admin. Services Reimbursement (770,707) (767,504) 3,203
Total Expenditures 12,722,066 12,615,465 (106,601) 1,193,086 3,533,481 2,340,395
' Excess or Deficiency( -) of Revenues
Over Expenditures 1,701,572 2,336,706 635,134 3,677,860 2,467,656 (1,210,204)
Other Financing Uses( -) or Sources
Sale of fixed assets 572,266 572,266
Operating transfers in 410,086 166,807 (243,279)
' Operating transfers out (1,701,572) (1,661,877) 39,695 (2,380,086) (2,136,807) 243,279
Total Other Financing Uses( -) or Sources (1,701,572) (1,661,877) 39,695 (1,970,000) (1,397,734) 572,266
Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses 674,829 674,829 1,707,860 1,069,922 (637,938)
Fund Balances January 1 7,452,043 7,452,043 2,794,425 2,794,425
Equity Transfer Out (693,000) (693,000)
Fund Balances December 31 $7,452,043 $7,433,872 ($18,171) $4,502,285 $3,864,347 ($637,938)
' (See notes to financial statements)
21
City of Brooklyn Center EXHIBIT 4
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES '
IN RETAINED EARNINGS
Proprietary Fund Types '
For the Year Ended December 31, 2001
Internal Totals '
Enterprise Service (Memorandum Only)
Operating Revenues Funds Funds 2001 2000
Sales and user fees $13,259,771 $1,085,046 $14,344,817 $14,102,285'
Cost of sales 3,220,229 3,220,229 3,304,423
Net Operating Revenues 10,039,542 1,085,046 11,124,588 10,797,862 ,
Operatinq Expenses
Personal services 2,889,399 409,406 3,298,805 3,406,146
Supplies 426,605 250,085 676,690 650,487
Other services 2,870,457 65,585 2,936,042 2,848,487
Insurance 81,798 51,788 133,586 113,928'
Utilities 370,780 2,629 373,409 336,257
Rent 226,659 226,659 193,774
Depreciation 1,292,168 552,091 1,844,259 1,884,552'
Total Operating Expenses 8,157,866 1,331,584 9,489,450 9,433,631
Operating Income (Loss) 1,881,676 (246,538) 1,635,138 1,364,231 '
Nonoperatina Revenues or Expenses W
Investment earnings 222,410 277,381 499,791 580,627 ,
Change in fair value of investments 225,952 265,439 491,391 (217,634)
Special assessments 290,907 290,907 353,157
Other revenue 4,840 4,840 10,275 '
Interest and fiscal agent fees (55,138) (55,138) (83,507)
Loss on sale of fixed assets (30,989)
Total Net Nonoperating Revenue 688,971 542,820 1,231,791 611,929
Income Before Operating Transfers 2,570,647 296,282 2,866,929 1,976,160 ,
Operating Transfers Out (325,500) (325,500) (75,000)
Net Income 2,245,147 296,282 2,541,429 1,901,160
Depreciation on contributed assets that
reduces contributed capital 323,422 73,055 396,477 509,088
Retained Earnings January 1 26,803,308 3,647,970 30,451,278 28,041,030
Retained Earnings December 31 ,
9 $29,371,877 $4,017,307 $33,389,184 $30,451,278
(See notes to financial statements) ,
22
1
' City of Brooklyn Center EXHIBIT 5
COMBINED STATEMENT OF CASH FLOWS
' Proprietary Fund Types
For the Year Ended December 31, 2001
Internal Totals
' Enterprise Service (Memorandum Only)
Cash flows from operatina activities: Funds Funds 2001 2000
Operating income (loss) $1,881,676 ($246,538) $1,635,138 $1,364,231
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,292,168 552,091 1,844,259 1,884,552
Changes in assets and liabilities:
Receivables (52,598) (2,365) (54,963) (213,627)
Inventories 80,515 (1,985) 78,530 45,360
Prepaid expenses (9,741) (9,741) 2,325
Payables (377,118) (58) (377,176) 110,975
Accrued expenses (109,006) 702,957 593,951 24,461
Accrued interest payable (3,962) (3,962) (3,675)
Accrued health insurance liability 126,438 126,438 53,352
Other nonoperating income 295,747 295,747 363,432
Net cash provided by operating activities 2,997,681 1,130,540 4,128,221 3,631,386
Cash flows from noncaoital financing activities:
' Proceeds from borrowings due to other funds (63,321) (63,321) 84,636
Principal payments on long -term debt (56,302) (56,302) (56,302)
Principal payments on advance from other funds (50,000) (50,000) (621,343)
' Interest paid on advance from other funds (515)
Interest paid on due to other funds (23,848)
Interest paid to other entities (1,972) (1,972)
Operating transfers out (325,500) (325,500) (75,000)
Net cash used for noncapital financing activities (497,095) (497,095) (692,372)
Cash flows from capital and related financina activities:
Capital contributions 23,605
Acquisition and construction of capital assets (2,545,415) (430,004) (2,975,419) (4,416,412)
Proceeds of sale of fixed assets 221,241
Principal paid on revenue bonds (190,000) (190,000) (180,000)
' Interest paid on revenue bonds (53,166) (53,166) (59,144)
Net cash used for capital and related financing activities (2,788,581) (430,004) (3,218,585) (4,410,710)
' Cash flows from investino activities:
Investments purchased (99,636) (430,647) (530,283) (5,039,305)
Investments sold or matured 1,734,601 2,193,995 3,928,596 6,206,563
' Investment earnings 222,410 277,381 499,791 580,627
Net cash provided by investing activities 1,857,375 2,040,729 3,898,104 1,747,885
' Net increase in cash and cash equivalents 1,569,380 2,741,265 4,310,645 276,189
Cash and cash equivalents at beginning of year 824,809 1,107,681 1,932,490 1,656,301
' Cash and cash equivalents at end of year $2,394,189 $3,848,946 $6,243,135 $1,932,490
Non cash items:
Change in fair value of investments $225,952 $265,439 $491,391 ($261,658)
' (See notes to financial statements)
' 23
City of Brooklyn Center
NOTES TO FINANCIAL STATEMENTS '
FOR THE YEAR ENDED DECEMBER 31, 2001
Note 1: Summary of Sianificant Accountina 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. Rer)ortina Entitv '
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 forthe 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. '
24
Note 1: Summary of Sianificant Accountina Policies (cont'd)
' Local Government Information Systems Association ( LOGIS):
This consortium of approximately 29 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 2001 financial
' statements of the City is $377,221 for services provided, 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.
LOGIS Insurance Group:
T his pp p purchasing rou provides cooperative urchasin of health and life insurance benefits for
g
approximately 45 governmental entities. The total of 2001 health and life insurance
costs paid by the City was $721,467. Complete financial statements may be
obtained from DCA, Inc. located at 400 DCA Center, 13100 Wayzata Boulevard,
Minnetonka, MN 55305 -1840.
OTHER:
The Brooklyn Center Fire Department : Relief Association the Association
Y N ( )
The Association is organized as a nonprofit organization, legally separate from the
City, by its members to provide pension and other benefits to such 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 15 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.
25
Note 1: Summary of Sianificant Accountina Policies (cont'd)
B. Fund Accountina '
The accounts of the City are organized on the basis of funds and account groups,
each of which is considered a separate accounting entity. The operations of each
fund are accounted forwith a separate set of self - balancing accounts that comprise
its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Government resources are allocated to and accounted for in individual '
funds based upon the purposes for which they are to be spent and the means by
which spending activities are controlled. The various funds are grouped, in the
financial statements in this report, into six generic fund types and two broad fund ,
categories as follows:
GOVERNMENTAL FUNDS:
General Fund - The General Fund is the general operating fund of the City. It is '
used to account for all financial resources except those required to be accounted for
in another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the
p p
proceeds of certain specific revenue sources that are legally restricted to ,
expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for the accumulation ,
of resources for, and the payment of, general long -term debt principal, interest, and
related costs.
Capital Projects Funds - Capital Projects Funds are used to account for financial '
resources to be used for the acquisition or construction of major capital facilities,
other than those financed by proprietary funds. '
PROPRIETARY FUNDS: ,
Enterprise Funds - Enterprise Funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises - where '
the intent is that the costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be financed or recovered
primarily through user charges.
Internal Service Funds - Internal Service Funds are used to account for the
financing of goods or services provided by one department to other departments of '
the City on a cost reimbursement basis.
26 '
Note 1: Summary of Sianificant Accountina Policies (cont'd)
C. Fixed Assets and Lona -Term Liabilities
The accounting and reporting of fixed assets and long -term liabilities associated
with a fund are determined by its measurement focus. All governmental funds are
accounted for on a spending or "financial flow" measurement, which means that
only current assets and current liabilities are generally included on their balance
sheets. Their reported fund balance is considered a measure of "available
spendable resources." Governmental fund operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other
' financing uses) in net current assets. Accordingly, they are said to present a
summary of sources and uses of "available spendable resources" during a period.
Fixed assets used in governmental fund type operations are accounted for in the
General Fixed Assets Account Group, ratherthan in the governmental funds. Public
domain general fixed assets consisting of certain improvements other than
' buildings, including roads, curbs and gutters, streets and sidewalks, drainage
systems, and lighting systems, have been excluded from general fixed assets, as
such items are immovable and of value only to the City. No depreciation has been
provided on general fixed assets.
All fixed assets are valued at historical cost or estimated historical cost if historical
cost is unavailable. Donated fixed assets are valued at their estimated market
value as of the date donated.
The fixed assets of the proprietary funds are depreciated using the straight -line
method over the estimated useful lives of the assets. The estimated useful lives are
as follows:
' Water & Sewer Mains & Lines 99 years
Buildings and Structures 20 -40 years
Water Wells and Storage Tanks 15 -50 years
Sewer Lift Stations 15 -40 years
Machinery and Equipment 5 -20 years
Furniture and Fixtures 5 -20 years
1 Long -term liabilities that are expected to be financed from governmental funds are
accounted for in the General Long -Term Debt Account Group, not in the
governmental funds.
27
Note 1: Summary of Sianificant Accountina Policies (cont'd)
All proprietary funds are accounted for on a flow of economic resources
measurement focus. With this measurement focus, all assets and all liabilities
associated with the operations of these funds are included on the balance sheet.
Fund equity (e.g., net total assets) is segregated into contributed capital and
retained earnings components. Proprietary fund -type operating statements present
increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
D. Basis of Accounting '
Governmental funds are accounted for using the modified accrual basis of ,
accounting. Their revenues are recognized when they become measurable and
available. Available means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period.
Major revenues that are susceptible to accrual include taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major ,
revenues that are not susceptible to accrual include licenses and permits, fees, and
miscellaneous revenues; such revenues are recorded only as received because
they are not measurable until collected. Interest on special assessments is '
recognized as revenue when due, net of delinquencies.
Expenditures are generally recognized under the modified accrual basis of '
accounting when the related fund liability is incurred, except for principal and
interest on general long -term debt which is recognized when due. '
All proprietary funds are accounted for using the accrual basis of accounting. Their
revenues are recognized when they are earned, and expenses are recognized when '
they are incurred. Unbilled Water and Sewer Fund utility service receivables are
recorded at year -end. The City applies all applicable Financial Accounting
Standards Board (FASB) pronouncements issued prior to November 30, 1989 in ,
accounting for its proprietary operations.
E. Budqets and Budqetary Accountina ,
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.
28 ,
' Note 1: Summary of Sianificant Accountina Policies (cont'd)
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 the contingency reserve
set up in the General Fund or by additional revenues.
7. All budget amounts lapse at the end of the year to the extent they have not been
expended or re- encumbered by City Council directive in the following fiscal year.
8. Formal budgetary integration is employed as a management control device
g rY g 9
during the year for all governmental funds with the exception of Debt Service Funds
and Capital Projects 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 the 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.
' F. Cash, Cash Equivalents and Investments
Cash balances from all funds are combined and invested to the extent available in
authorized investments (see Note 2). Earnings from such investments are allocated
to the respective funds on the basis of applicable cash balance participation by
each fund. Cash and investments are stated at fair value. Unless individual
investments become impaired, all certificates of deposit with a maturity of one year
r
1 29
Note 1: Summary of Siqnificant Accountinq Policies (cont'd) '
or less when purchased are stated at amortized cost which approximates market
value. All highly liquid unrestricted investments with a maturity of three months or
less when purchased are considered to be cash equivalents.
G. Inventories and Supplies
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. '
H. Accrued Vacation and Sick Pav
The City pays employees severance pay upon termination of employment based on '
accumulated sick leave and accrued vacation. Such pay is accrued as an
expenditure /expense as it is earned and accounted for in the Compensated i
Absences Fund, an internal service fund established for that purpose.
I. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital grants
or contributions from developers, customers, or other funds.
Reserves represent those portions of fund equity not available for appropriation or
expenditure, or legally segregated for a specific future use. Designated fund
balance represents tentative plans for future use of financial resources.
J. Property Tax
Property tax levies are set by the City Council in December of each year and are
certified to Hennepin County for collection in the following year. In Minnesota, ,
counties act as collection agents for all property taxes.
The County spreads all levies over taxable property. Such taxes become liens on
properties on January 1 in the year of collection. Revenues are accrued and
recognized in the year collectible, net of delinquencies. '
Real estate property taxes may be paid by taxpayers in two equal installments on
May 15 and October 15. Personal property taxes may be paid on February 28 and
June 30. The County provides tax settlements to cities and other taxing districts two
times a year, in July and December.
30 ,
' Note 1: Summary of Sianificant Accountina Policies (cont'd)
' Taxes that remain unpaid at December 31 are classified as delinquent taxes
receivable and are fully offset by deferred revenue because they are not known to
be available to finance current expenditures. In addition, at December 31, 2001,
the City has recorded $266,343 in deferred revenue for the General Fund for
estimated property tax abatements on properties whose value is under appeal that
are anticipated to be repaid to the County in future years.
K. Total Columns on Combined Statements
' Total columns on the Combined Statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis. Data in these
columns do not present financial position, results of operations or cash flows in
conformity with accounting principles generally accepted in the United States of
America. Interfund eliminations have not been made in the aggregation of this data.
i
L. New Accountina Pronouncement
1 In June 1999 the GASB issued Statement No. 34 Basic Financial Statements and
Management's Discussion and Analysis - for State and Local Governments. This
' statement '.is effective for the City for the year ending December 31, 2003.
Statement No. 34 will affect the presentation of the City's annual financial report.
The statement also requires the City to utilize the economic resources measurement
focus as well as the accrual basis of accounting. The City has not yet determined
the effects Statement No. 34 will have on its financial statements.
Note 2: Cash 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.
r
31
Note 2: Cash and Investments (cont'd) '
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 with a financial institution other than that
furnishing the collateral.
Credit Risk Category Bank Carrying
Balances Amount
(1) Insured or collateralized by securities held by the ,
City or its agent in the City's name $114,086 $116,408
(2) Collateralized with securities held by the pledging
institution's trust department in the City's name 1,379,281 481,366
(3) Uncol lateral ized or collateralized with securities held
by the pledging institution but not in the City's name - -
$1, $59 i
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes, as follows: '
a Direct obligations or obligations guaranteed by the United States or its
agencies.
b Shares of investment companies registered under the Federal
Investment Company Act of 1940 and whose only investments are in
securities described in (a) above.
C General obligations of the State of Minnesota or any of its
municipalities.
d Banker's acceptances of United States banks eligible for purchase by
the Federal Reserve System.
e Commercial paper issued by United States corporations or their ,
Canadian subsidiaries, of the highest quality, and maturing in 270
days or less.
f Repurchase or reverse repurchase agreements with banks that are
members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or
certain Minnesota securities broker - dealers.
r
32 ,
Note 2: Cash and Investments (cont'd)
The City has not purchased any collateralized mortgage obligations, derivatives or strip
investments. The City does not purchase individual commercial paper issues; commercial
paper is only held through shares of money market pools that invest in multiple issues.
Investments are typically held to maturity. Of the City's portfolio as of December 31, 2001,
40% matures within 1 year, another 52% matures in the second year, and 8% matures in
eight years.
The City participates in an external investment pool sponsored by the League of Minnesota
Cities. The pool is established in accordance with Minnesota Statutes, Section 471.59.
Only municipalities as defined by State Statute are permitted to participate in the fund. As of
December 31, 2001, the fair value of the City's position in the pool is the same as the value
of the pool shares.
The City's investments are categorized below to give an indication of the level of custodial
credit risk assumed at year -end. Category 1 includes investments that are insured or
registered or for which the securities are held by the City or its agent in the City's name.
Category 2 includes uninsured and unregistered investments for which the securities are
held by the counter party's trust department or agent in the City's name. Category 3
includes uninsured and unregistered investments for which the securities are held by the
counter party, or by its trust department or agent, but not in the City's name.
Balances at December 31, 2001:
Carrying
Credit Risk Category Amount/
Securities Type 1 2 3 Fair Value
Investments - Categorized:
Negotiable Certificates
of Deposit $2,927,477 $2,927,477
U.S. Government 5,959,158 5,959,158
Federal agencies 3,629,966 3,629,966
$12,516,601 $ - $ - 12,516,601
Investment pools 22,127,655
Total investments 34,644,256
Deposits 597,774
Petty cash /change funds 12,275
Total cash and investments $35,254,305
33
Note 3: Fixed Assets '
Changes in the General Fixed Assets Account Group during 2001 were as follows:
Balance Balance
Jan. 1, 2001 Additions Disposals Dec. 31, 2001
Land $3,551,630 $95,000 $3,646,630
Buildings & Improvements 15,686,903 2,237,909 $30,305 17,894,507
Park Improvements 3,701,175 270,804 3,971,979
Furniture & Fixtures 1,263,568 102,389 66,725 1,299,232
Departmental Equipment 1,121,699 142,289 69,489 1,194,499
TOTAL GENERAL FIXED
ASSETS $25,324,975 $2,848,391 $166,519 $28,006,847
The following is a summary of proprietary fund -type fixed assets at December 31, 2001:
Internal
Enterprise Service
Funds Funds
Land $3,198,651
Land Improvements 491,078
Buildings & Improvements 20,430,842
p
Mains & Lines 35,738,550
Departmental Equipment 1,658,703 $5,934,770
Total 61,517,824 5,934,770
Less accumulated depreciation (13,371,122) (3,067,896)
Net $48,146,702 $2,866,874
i
Note 4: Contributed Capital
During 2001 contributed capital changed by the following amounts:
Internal
Enterprise Service
Funds Funds
Deductions:
Depreciation on contributed assets ($323,422) ($73,055)
Net change (323,422) (73,055)
Contributed Capital, January 1, 2001 22,618,597 3,004,226
Contributed Capital, December 31, 2001 $22,295,175 $2,931,171
34 '
i
Note 5: Ooeratina Leases
The City leased space for the operation of two municipal liquor stores
in 2001. The first of these leases ended in March 2001 and was not
renewed because The City discontinued liquor sales at this location.
The second was a ten -year lease, which began in June 2000, with the
option of a ten -year extension. This lease provides for a minimum
monthly base rent payment, plus a pro -rata share of common area
expenses. In addition, it requires additional lease payments if agreed -
upon revenue thresholds are attained. This lease 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, 2001 and 2000 was $140,873 and $117,659, respectively. Future
minimum rent payments under the current agreement are as follows:
Year Ending Amount
2002 -2004 $ 91,350 per year
2005 96,226
2006 -2009 100,170 per year
2010 44,798
$815.754
The Earle Brown Heritage Center Fund, which operates as an
enterprise fund, leased space to two tenants in 2001.- One tenant
signed a lease for a ten -year period commencing January 1, 1999.
Another tenant has signed two separate leases, both of which are
renewable automatically for one -year terms. The first lease began
April 15, 1999 and is for $19,200 per year. The second lease began
January 1, 2000 and is for $3,600 per year. Payment from this tenant
will be in the form of audio /visual equipment trade -out. This equipment
will be used by the Heritage Center for client events. Rental revenues
and expenses under the lease agreements were as follows:
2001 2000
Rental Revenues $ 62,629 $ 60,138
Rental Expenses $ 26,688 $ 22,112
Future minimum rentals to be received are as follows:
YEAR 12002 2003 12004 12005 2006 2007 1 2008 f
CASH 1 $39,660 $39,912 $40,020 $41,200 $41,307 $42,488 $38,947
TRADE- $2298001
OUT
35
i
Note 6: Lona -Term Debt '
The City's long -term debt includes general obligation bonds, tax increment bonds, and special
assessment improvement bonds, all of which are recorded in the General Long -Term Debt
Account Group. In addition, the City issued storm sewer revenue bonds which are recorded as a
liability in the Storm Drainage Fund.
The following is a summary of bond transactions for the year ended December 31, 2001:
General Tax Special Storm Sewer
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $8,760,000 $9,140,000 $6,120,000 $1,050,000 $25,070,000
Bonds issued 730,000 730,000
Bonds retired 655,000 1,450,000 700,000 190,000 2,995,000
Bonds payable
December 31 $8,105,000 $7,690,000 $6,150,000 $860,000 $22,805,000
The annual requirements to amortize all outstanding debt as of December 31, 2001,
including interest of $5,100,930, are as follows:
General Tax Special Storm Sewer
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds Total
2002 $1,030,749 $1,973,893 $1,029,498 $240,100 $4,274,240
2003 1,027,356 1,985,412 1,092,596 239,540 4,344,904
2004 1,032,318 2,012,303 1,044,960 238,250 4,327,831
2005 1,035,374 531,123 1,006,455 236,210 2,809,162
2006 1,036,412 507,362 864,846 2,408,620
2007 on 5,176,962 2,356,516 2,207,695 9,741,173
$10,339,171 $9,366,609 $7,246,050 $954,100 $27,905,930
If special assessments are not adequate to retire the outstanding debt, the City's full faith and
credit are pledged for their redemption. The general obligation, tax increment, and storm sewer
revenue bonds are backed by the full faith and credit of the City.
36 '
t Note 6: Lona Term Debt (cont'd)
Long -term debt obligations outstanding at year -end are summarized as follows:
Bond
Payment Issue Maturity Authorized
Rates % Dates Date Date And Issued Retired Outstanding
General Obligation Bonds
Refunding State -Aid Street Bonds 3.55 -4.0 4 -01 10 -01 12 -01 -98 04 -01 -06 $1,585,000 $240,000 $1,345,000
Police and Fire Building Bonds 4.1 -4.9 2 -01 8 -01 12 -01 -97 02 -01 -13 7,900,000 $1,140,000 6,760,000
1 Total $9,485,000 $1,380,000 $8,105,000
General Obligation Tax Increment Bonds
1991 Tax Increment Bonds 4.7 -6.0 2 -01 8 -01 03 -01 -91 02 -01 -04 $6,050,000 $3,650,000 $2,400,000
1992 Refunding Tax Increment 4.5 -5.6 2 -01 8 -01 02 -01 -92 02 -01 -03 4,270,000 2,720,000 1,550,000
1995 Taxable Tax Increment Bonds 6.0 -6.75 2 -01 8 -01 11 -01 -95 02 -01 -11 4,560,000 820,000 3,740,000
Total $14,880,000 $7,190,000 $7,690,000
General Obligation Special Assessment Bonds
1994 Street Improvement Bonds 4.1 -5.5 2 -01 8 -01 08 -01 -94 02 -01 -05 $835,000 $475,000 $360,000
1995 Street Improvement Bonds 4.0 -4.9 2 -01 8 -01 11 -01 -95 02 -01 -06 780,000 360,000 420,000
1996 Street Improvement Bonds 4.2 -5,1 2 -01 8 -01 11 -01 -96 02 -01 -07 1,440,000 530,000 910,000
1997 Street Improvement Bonds 4.0 -4.7 2 -01 8 -01 12 -01 -97 02 -01 -08 1,075,000 345,000 730,000
1998 Street Improvement Bonds 3.4 -4.2 2 -01 8 -01 12 -01 -98 02 -01 -09 1,085,000 240,000 845,000
1999 Street Improvement Bonds 4.1 -5.0 2 -01 8 -01 12 -01 -99 02 -01 -10 1,585,000 165,000 1,420,000
2000 Street Improvement Bonds 4.3 -4.9 2 -01 8 -01 12 -01 -00 02 -01 -11 735,000 - 735,000
2001 Street Improvement Bonds 2.6 -4.4 2 -01 8 -01 12 -01 -01 02 -01 -12 730,000 - 730,000
Total $8,265,000 $2,115,000 $6,150,000
General Obligation Revenue Bonds
1994 Storm Sewer Revenue Bonds 4.2 -5.4 2 -01 8 -01 08 -01 -94 02 -01 -05 $1,830,000 $970,000 $860,000
Total $1,830,000 $970,000 $860,000
37
Note 6: Lona Term Debt (cont'd) ,
In addition to the bonded debt listed above, the City of Brooklyn Center has an amount recorded as
"Other long term liabilities." This is a loan extended to the City by Northern States Power for the
purpose of promoting energy conservation improvements to City owned facilities. The loan is ,
recorded in the General Long -term Debt Group of Accounts and was used for installation of low
energy lamps in traffic signals. It will be repaid by the General Fund in 41 monthly installments of
$1,388 which commenced on November 4, 1998.
General
Long -Term
Debt
Other long term liabilities payable January 1 $20,819
Liabilities retired during 2001 (16,656)
Other long term liabilities payable December 31 $4,163
Conduit debt obiiaations
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, 2001, there were five series of Housing Revenue or Industrial Revenue
Bonds outstanding, with an aggregate principal amount payable of approximately
$25,755,000.
38
rrw mm r m r m m it m rr r rr r t� rr rM1 w� r
Note 7: Segment Information
Segment information as of and for the year ended December 31, 2001 was as follows:
E. Brown
Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainage
Fund Fund Fund Fund Fund Fund Fund Total
Operating Revenues $3,552,152 $320,105 $3,920,676 $211,388 $1,520,950 $2,604,998 $1,129,502 $13,259,771
Depreciation Expense 36,488 14,736 416,296 414,965 239,381 170,302 1,292,168
Operating Income (Loss) 212,658 24,572 110,892 (3,601) 147,009 588,056 802,090 1,881,676
Nonoperating Revenues:
Special Assessments 20,253 289 270,365 290,907
Operating Transfers Out (110,000) (10,000) (170,500) (290,500)
Net Income (Loss) 162,734 26,223 130,743 3,988 205,264 721,531 994,664 2,245,147
Current Capital Contributions
Property, Plant & Equipment:
Additions 8,599 5,352 38,092 1,058,347 607,755 845,165 2,563,310
Deletions 50,131 56,479 10,316 214,039 330,965
Net Working Capital 867,401 31,996 282,018 101,567 2,084,951 1,688,291 24,126 5,080,350
Total Assets 1,234,540 1,737,187 11,167,393 102,192 16,210,742 12,971,173 10,987,711 54,410,938
Bonds and Other Liabilities
Payable from Operating
Revenues 950,000 860,000 1,810,000
Total Equity 1,094,156 774,749 10,755,046 101,567 15,922,225 12,944,746 10,074,563 51,667,052
w
Note 8: Reserved /Desianated Fund Eauitv ,
Fund balances and retained earnings in the various funds have
been reserved or designated for the following purposes:
Reserved Fund Eauitv
Retained Earnings:
Enterprise Funds:
Water Utility Fund - Special Assessments $239,328
Sanitary Sewer Fund - Special Assessments 3,739
Storm Drainage Fund
Debt Service 240,100
Special Assessments 18,365
Total Reserved Retained Earnings 501,532
Fund Balances:
General Fund: '
Advances to Other Funds 105,074
Debt Service Funds:
General Obligation Bonds - Debt Service 831,588
Tax Increment Bonds - Debt Service 2,184,623
Special Assessment Bonds - Debt Service 2,456,303
Total Debt Service Funds 5,472,514
Capital Projects Funds:
Capital Improvements Fund
Advances to Other Funds 950,000
Municipal State Aid for Construction Fund
Advances to Other Funds 593,069
Total Capital Projects Funds 1,543,069
Total Reserved Fund Balances 7,120,657
Total Reserved Fund Equity $7,622,189
Desianated Fund Eauitv
General Fund:
Working Capital $6,437,653
Total General Fund $6,437,653
40
Note 9: Interfund Receivables and Pavables
Due to /from other funds are short -term receivables /payables. Advances
to /from other funds are considered long -term receivables /payables.
Advances have maturities extending through the year 2017. Advances
between funds are offset by a fund balance reserve account and are not
expendable or available financial resources. Advance and due to
amounts are subtracted from the respective funds' monthly cash
balances which form the basis for interest allocation. Subsequently,
these liabilities result in an interest rate charge equal to the City's
investment return. Negative cash balances result in interest charges for
affected funds.
Due from Due to
Other Funds Other Funds
Special Revenue Funds:
Tax Increment #3 Fund $ 502,447
Earle Brown Farm Tax Increment Fund $ 502,447
Enterprise Funds:
Water Utility Fund 21,315
Storm Drainage Fund 21,315
Total $ 523,762 $ 523,762
Advances to Advances from
Other Funds Other Funds
General Fund $ 105,074
Special Revenue Funds:
Earle Brown Farm Tax Increment Fund $ 698,143
Capital Projects Funds:
Capital Improvements Fund 950,000
Municipal State Aid Construction Fund 593,069
Enterprise Funds:
Golf Course Fund 950,000
Total $ 1,648,143 $ 1,648,143
41
Note 10: Individual Fund Disclosures '
A deficit fund balance exists at December 31, 2001 in the following Special
Revenue Fund:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $1,202,247
This deficit is being funded through internal borrowing and will be repaid from
future surplus tax increments.
Excess of Expenditures over Appropriations:
For the year ended December 31, 2001, expenditures exceeded budget at the
department level for the General Fund or the fund level for all other funds (i.e.,
the legal level of budgetary control) as follows:
General Fund Departments:
Finance $11,813
Legal 22,061
Government Buildings 69,276
Data Processing 482
Fire Protection 7,964
Engineering 7,341
Streets 50,901
General Recreation Programs 9,592
Community Center 65,844
Convention Bureau 50,805
Administrative Reimbursement 3,203
Special Revenue Funds:
Economic Development Authority $ 1,864,268
Earle Brown Tax Increment District 27,886
Tax Increment District No. 3 403,067
Police Drug Forfeiture 17,328
City Initiatives Grant 119,046
Note 11: Continaencies and Commitments
There are several lawsuits pending in which the City is involved. City
management estimates that the potential claims against the City not covered by
insurance resulting from such litigation would not materially affect the City's
financial position. The City has approximately $1.5 million in contractual
commitments related to current projects.
42
Note 12: Risk Manaqement
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.
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.
Note 13: Post- Emolovment Health Care Benefits
The City has provided post- retirement health care benefits, as per the
requirements of a 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 14A)
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, 2001, eight employees currently participate in this program.
The cost of City paid health care premiums for the years ended December 31,
2001 and 2000 was $24,520 and $17,715, respectively. The $1,549,681
recorded as a liability reflects the City's current balance accrued for this
obligation. The liability will be analyzed on an ongoing basis.
r
43
Note 14: Defined Benefit Pension Plans - Statewide
A. Plan Descriotion
All full -time and certain part -time employees of the City of Brooklyn Center are
covered by defined benefit pension plans administered by the Public Employees
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund ( PEPFF), which are cost sharing, multiple - employer retirement plans.
These plans are established and administered in accordance with Minnesota
Statutes, 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 members
are not. All new members must participate in the Coordinated Plan. All police
officers, fire fighters, and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and
benefits to survivors upon death of eligible members. Benefits are established
by State statute, and vest after three years of credited service. The defined
retirement benefits are based on member's highest average salary for any five I
successive years of allowable service, age, and years of credit at termination of
service.
Two methods are used to compute benefits for PERF's Coordinated and Basic
p
members. The retiring member receives the higher of step rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for
each of the first 10 years of service and 2.7 percent for each remaining year.
The annuity accrual rate for a Coordinated Plan member is 1.2 percent of
average salary for each of the first 10 years and 1.7 percent for each remaining
year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary
for Basic Plan members and 1.7 percent for Coordinated Plan members for each
year of service. For all PEPFF members and PERF members whose annuity is
calculated using Method 1, a full annuity is available when age plus years of
service equal 90. A reduced annuity is also available to eligible members
seeking early retirement.
There are different types of annuities available to members upon retirement. A
normal annuity is a lifetime annuity that ceases upon the death of the retiree --
no survivor annuity is payable. There are also various types of joint and survivor
annuity options available which will reduce the monthly normal annuity amount,
because the annuity is payable overjoint lives. Members may also leave their
contributions in the fund upon termination of public service in order to qualify for
a deferred annuity at retirement age. Refunds of contributions are available at
any time to members who leave public service, before retirement benefits begin.
44
Note 14: Defined Benefit Pension Plans - Statewide (cont'd)
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, 514 St. Peter Street, #200, St. Paul,
Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
B. Fundinq Policv
Minnesota Statutes Chapter 353 sets the rate 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 8.75% and 4.75 %,
respectively, of their annual covered salary. PEPFF members are required to
contribute 7.60% of their annual covered salary. The City of Brooklyn Center is
required to contribute the following percentages of annual covered payroll:
11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF
members, and 11.40% for PEPFF members. The City's contributions to the
Public Employees Retirement Fund for the years ended December 31, 2001,
2000, and 1999 were $296,052, $299,879, and $285,779, respectively. The
City's contributions to the Public Employees Police & Fire Fund for the years
ended December 31, 2001, 2000, and 1999 were $239,799, $223,541, and
$254,859, respectively. The City's contributions were equal to the contractually
required contributions for each year as set by State Statute.
Note 15: Pension Plan - Brooklvn 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 fire fighters of the
City who are members of the Association. The Association issues a financial
report which is available at City offices.
Funding Policv 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.
45
Note 15: Pension Plan - Brooklvn Center Fire Department Relief Association (cont'd)
Contributions: Total contributions to the Plan in 2001 were $118,508, of which
$28,360 was levied by the City of Brooklyn Center and $90,148
was from the State of Minnesota. The actuarially determined
contribution based on an actuarial valuation performed at
January 1, 2001 was $56,879, which represents funding for
normal cost of $45,795 and administration of $11,084. 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.
Annual pension cost and changes in the net pension obligation during the year were as
follows:
Annual Required Contribution $73,563
Interest on Net Pension Obligation 11,084
Adjustments to the Annual Required Contribution (27,768)
Annual Pension Cost 56,879
Contributions Made 118,508
Increase in Negative Net Pension Obligation 61,629
Beginning Balance, Negative Net Pension Obligation 621,028
Ending Balance, Negative Net Pension Obligation 682,657
The information below is the most recent data available.
Actuarial valuation date: 1/1/01.
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 7.5 %.
Projected salary increases Not applicable.
Post retirement benefits None.
Three -vear Trend Information
Annual Percentage of Negative Net
Pension Cost APC Pension
Year Ended (APC) APC Contributed contributed Obligation
12/31/98 $95,176 $107,215 112.64% $438,538
12/31/99 $96,617 $116,570 120.65% $789,400
12/31/00 $96,617 $120,175 124.38% ( $621,028
46
I�
Note 15: Pension Plan - Brooklvn Center Fire Department Relief Association (cont'd)
Schedule of Fundina Proaress
Actuarial Excess of
Actuarial Value Accrued Assets over
Funded Fiscal of Assets Liability Liability Funded Ratio
Year (A) (B) (A) -(B) A/B
1998 $3,056,068 $2,617,530 $438,538 116.8%
1999 $3,319,342 $2,529,942 $789,400 131.2%
2000 $3,078,163 $2,457,135 $621,028 125.3%
Related Partv Investments
As of December 31, 2001, the Association held no securities issued by the City
or other related parties.
Note 16: Fund Chanaes
The following funds were opened during 2001:
Debt Service:
GO Street Improvement Bonds of 2001 Fund
Internal Service:
Compensated Absences Fund
No funds were closed during 2001.
Note 17: Residual Eauitv Transfers
The General Fund transferred $468,000 to the Capital Improvements Capital
Projects Fund and $225,000 to the Special Assessment Construction Capital
Projects Fund. The transfers represent funds from the prior year's surplus of
revenues over expenditures. The funds will be used for future park, building and
street improvements. The amounts are not expected to be repaid and are
reflected as residual equity transfers in the City's financial statements.
' 47
City of Brooklyn Center, Minnesota
GENERALFUND
The City of Brooklyn Center Home Rule Charter provides in Section 7.11 that "there shall
be maintained in the City Treasury a classification of Funds which shall provide for a
General Fund for the payment of such expenses of the City as the Council may deem
proper, and such other funds as may be required by statute, ordinance or resolution."
The General Fund was established to account for all revenues and expenditures which are
not required to be accounted for in other funds. It has more diverse revenue sources than
other funds. These revenue sources include property taxes, licenses, permits, fines and
forfeits, intergovernmental, service charges, and investment earnings. The Fund's
resources finance a wide range of functions, including the current operations of general
government, public safety, public works, health and welfare, recreation, and
non - departmental expenditures.
This fund utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the related liability is incurred.
48
AA = 1
City of Brooklyn Center
General Fund
COMPARATIVE BALANCE SHEET
December 31, 2001
2001 2000
ASSETS
Cash and cash equivalents $5,060,325 $1,887,383
Investments 3,309,529 6,811,176
Accounts receivable 67,160 78,883
Delinquent taxes receivable 263,126 68,299
Due from other governments 65,190 105,902
Advance to other funds 105,074 105,074
TOTAL ASSETS $8,870,404 $9,056,717
LIABILITIES AND FUND BALANCE,
Liabilities:
Accounts payable $508,939 $313,966
Accrued salaries payable 335,501 372,090
Accrued vacation and sick pay 641,486
Deferred revenue 325,749 68,299
Deferred revenue - tax abatements 266,343 208,833
Total Liabilities 1,436,532 1,604,674
Fund Balance:
Reserved for advances to other funds 105,074 105,074
Unreserved fund balance
Designated:
Working capital 6,437,653 6,097,387
Undesignated 891,145 1,249,582
Total Fund Balance 7,433,872 7,452,043
TOTAL LIABILITIES AND FUND BALANCE $8,870,404 $9,056,717
49
A -2
City of Brooklyn Center
General Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Revenues
Property taxes $8,558,675 $8,469,023 ($89,652) $8,703,772
Property tax abatements reserve (57,510) (57,510) 41,400
Licenses and permits 556,165 788,629 232,464 632,549
Intergovernmental 4,129,753 4,135,282 5,529 4,076,169
Charges for services 622,045 688,453 66,408 779,060
Court fines 185,000 230,408 45,408 180,676
Investment earnings 360,000 345,438 (14,562) 378,481
Change in fair value of investments 328,391 328,391 (153,454)
Miscellaneous 12,000 24,057 12,057 9,713
Total Revenues 14,423,638 14,952,171 528,533 14,648,366
Expenditures
General government 2,443,879 2,504,392 60,513 2,421,762
Public safety 5,769,431 5,660,600 (108,831) 5,437,360
Public works 2,083,822 2,142,064 58,242 2,100,865
Community services 106,035 106,034 (1) 95,148
Parks and recreation 2,267,089 2,205,018 (62,071) 2,216,098
Economic development 342,000 392,805 50,805 397,507
Non departmental 480,517 372,056 (108,461) 419,789
Administrative Services Reimbursement (770,707) (767,504) 3,203 (795,737)
Total Expenditures 12,722,066 12,615,465 (106,601) 12,292,792
Excess of Revenues Over Expenditures 1,701,572 2,336,706 635,134 2,355,574
Other Financing Uses
Operating transfers out (1,701,572) (1,661,877) 39,695 (1,532,238)
Total Other Financing Uses (1,701,572) (1,661,877) 39,695 (1,532,238)
Excess of Revenues and Other Financing Sources
Over Expenditures and Other Financing Uses 674,829 674,829 823,336
I
Fund Balance January 1 7,452,043 7,452,043 7,308,707
Equity Transfers Out (693,000) (693,000) (680,000)
Fund Balance December 31 $7,452,043 $7,433,872 ($18,171) $7,452,043
I
50
S -1 I
(Continued next page)
City of Brooklyn Center
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000 j
Budget Actual Budget Actual
Ad Valorem Taxes
Gross property taxes $7,838,675 $7,635,539 ($203,136) $7,807,516
Penalties and interest 1,623 1,623 55,900
Lodging tax 720,000 826,957 106,957 836,857
Special assessments 4,904 4,904 3,499
Total Taxes 8,558,675 8,469,023 (89,652) 8,703,772
Reserve for Property Tax Abatements
Tax abatements under litigation (57,510) (57,510) 41,400
Total Property Tax Abatements (57,510) (57,510) 41,400 I
Licenses and Permits
Liquor and beer 99,900 104,219 4,319 100,575
Building permits 305,000 497,283 192,283 353,915
Mechanical permits 50,000 77,806 27,806 60,874
Sewer and water permits 1,000 904 (96) 1,073
Plumbing permits 35,000 40,823 5,823 31,204
Garbage licenses 2,955 3,130 175 3,141
Taxicab licenses 750 1,000 250 625
Mechanical licenses 4,800 6,025 1,225 5,825
Pawn shop licenses 12,000 12,000 0 12,000
Service station licenses 3,495 2,877 (618) 2,140
Vehicle dealer licenses 1,750 2,250 500 1,750
Bowling licenses 480 725 245 720
Cigarette licenses 4,050 4,090 40 3,150
Sign permits 3,000 3,715 715 4,316
Rental dwelling permits 21,000 24,004 3,004 40,715
Amusement licenses 2,485 1,369 (1,116) 2,668
i
Dog licenses 6,000 4,079 (1,921) 3,866
Miscellaneous business license 2,500 2,330 (170) 3,992
Total Licenses and Permits 556,165 788,629 232,464 632,549
Intergovernmental
Federal grants:
Miscellaneous grants 5,000 4,555 (445) 4,737
Total Federal Grants $5,000 $4,555 ($445) $4,737
51
S -1
(Continued from prior page)
City of Brooklyn Center
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Intergovernmental (continued)
State grants:
Local government aid $2,179,744 $2,179,744 $2,122,635
Homestead credit aid 1,380,106 1,380,106 1,379,768
Police pension aid 230,695 228,208 ($2,487) 258,973
PERA aid 34,365 34,365 34,365
Fireperson pension aid 89,484 90,148 664 92,155
Police training 14,000 19,166 5,166 16,326
E -911 phone service 18,000 18,296 296 19,229
Street maintenance aid 90,000 90,000 90,000
Low income housing aid 87,739 87,738 (1) 56,892
Miscellaneous grants 620 2,956 2,336 1,089
Total State Grants 4,124,753 4,130,727 5,974 4,071,432
Total Intergovernmental 4,129,753 4,135,282 5,529 4,076,169
Charges for Services
General government charges 30,000 39,301 9,301 51,016
Public safety charges 37,000 30,760 (6,240) 40,436
Recreation fees 555,045 618,392 63,347 687,608
Total Charges for Services 622,045 688,453 66,408 779,060
Court Fines
Fines 185,000 230,408 45,408 180,676
Total Court Fines 185,000 230,408 45,408 180,676
Miscellaneous
Interest on investments 360,000 345,438 (14,562) 378,481
Change in fair value of investments 328,391 328,391 (153,454)
Other 12,000 24,057 12,057 9,713
Total Miscellaneous 372,000 697,886 325,886 234,740
Total Revenues $14,423,638 $14,952,171 $528,533 $14,648,366
i
52
S -2
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
General Government
Mayor and Council:
Personal services $45,317 $42,927 ($2,390) $40,899
Supplies 1,550 691 (859) 2,892
Services and other charges 77,400 78,828 1,428 70,258
Total Mayor and Council 124,267 122,446 (1,821) 114,049
Administrative Office:
Personal services 382,527 377,646 (4,881) 369,075
Supplies 6,650 3,473 (3,177) 5,099
Services and other charges 67,020 57,084 (9,936) 55,808
Capital outlay 1,200 1,200 5,617
Total Administrative Office 457,397 439,403 (17,994) 435,599
Elections and Voter Registration:
Personal services 73,682 55,888 (17,794) 72,167
Supplies 1,000 95 (905) 2,806
Services and other. charges 6,375 1,932 (4,443) 1,633
Total Elections and Voter Registration 81,057 57,915 (23,142) 76,606
Assessor's Office:
Personal services 169,238 177,779 8,541 229,049
Supplies 2,600 877 (1,723) 3,174
Services and other charges 36,136 31,085 (5,051) 31,070
Capital outlay 3,000 1,071 (1,929) 2,000
Total Assessor's Office 210,974 210,812 (162) 265,293
Finance:
Personal services 418,448 436,803 18,355 377,983
Supplies 6,100 1,068 (5,032) 5,204
Services and other charges 8,565 9,040 475 8,133
Capital outlay 4,000 2,015 (1,985) 3,977
Total Finance 437,113 448,926 11,813 395,297
Legate
Services and other charges 240,000 262,061 22,061 276,384
Total Legal 240,000 262,061 22,061 276,384
Government Buildings:
Personal services 247,504 229,959 (17,545) 228,584
Supplies 79,150 66,943 (12,207) 65,398
Services and other charges 288,157 386,985 98,828 298,863
Capital outlay 3,000 3,200 200 19,387
Total Government Buildings $617,811 $687,087 $69,276 $612,232
53
iA S -2
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
General Government (continued)
Data Processing:
Personal services $77,253 $77,036 ($217) $72,059
Supplies 10,000 10,489 489 10,409
Services and other charges 148,007 138,241 (9,766) 134,379
Capital outlay 40,000 49,976 9,976 29,455
Total Data Processing 275,260 275,742 482 246,302
Total General Government 2,443,879 2,504,392 60,513 2,421,762
Public Safetv
Police Protection:
Personal services 3,751,916 3,766,585 14,669 3,515,848
Supplies 79,695 96,607 16,912 60,169
Services and other charges 720,222 635,792 (84,430) 694,170
Capital outlay 66,950 56,236 (10,714) 48,559
Total Police Protection 4,618,783 4,555,220 (63,563) 4,318,746
Fire Protection:
Personal services 404,616 397,910 (6,706) 391,744
Supplies 38,300 41,087 2,787 35,074
Services and other charges 169,556 183,231 13,675 170,365
Capital outlay 45,000 43,208 (1,792) 65,878
Total Fire Protection 657,472 665,436 7,964 663,061
Protective Inspection:
Personal services 401,181 332,952 (68,229) 374,202
Supplies 3,200 2,854 (346) 3,080
Services and other charges 38,238 56,531 18,293 34,924
Capital outlay 5,800 4,361 (1,439)
Total Protective Inspection 448,419 396,698 (51,721) 412,206
Emergency Preparedness:
Personal services 34,338 34,719 381 31,122
Supplies 1,900 1,681 (219) 1,661
Services and other charges 8,519 6,846 (1,673) 10,564
Total Emergency Preparedness 44,757 43,246 (1,511) 43,347
Total Public Safety $5,769,431 $5,660,600 ($108,831) $5,437,360
54
S -2
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Public Works
Engineering Department:
Personal services $613,559 $613,042 ($517) $616,271
Supplies 5,350 3,743 (1,607) 4,203
Services and other charges 27,299 33,639 6,340 23,444
Capital outlay 14,700 17,825 3,125 7,832
Total Engineering Department 660,908 668,249 7,341 651,750
Street Department:
Personal services 630,834 642,978 12,144 643,894
Supplies 153,500 163,680 10,180 182,810
Services and other charges 537,130 567,889 30,759 524,986
Capital outlay 101,450 99,268 (2,182) 97,425
Total Street Department 1,422,914 1,473,815 50,901 1,449,115
Total Public Works 2,083,822 2,142,064 58,242 2,100,865
Communitv Services
Social Services:
Service and other charges 106,035 106,034 (1) 95,148
Total Community Services 106,035 106,034 (1) 95,148
Parks and Recreation
Administration:
Personal services 384,958 378,491 (6,467) 385,911
Supplies 15,500 7,125 (8,375) 15,808
Services and other charges 55,765 47,646 (8,119) 49,766
Capital outlay 12,900 6,966 (5,934) 16,575
Total Administration 469,123 440,228 (28,895) 468,060
Adult Programs:
Personal services 71,767 66,445 (5,322) 65,740
Supplies 21,030 20,690 (340) 19,412
Services and other charges 113,725 97,120 (16,605) 99,824
Total Adult Programs 206,522 184,255 (22,267) 184,976
Teen Programs:
Personal services 7,390 3,674 (3,716) 4,521
Supplies 600 1,207 607 134
Services and other charges 1,300 997 (303)
Total Teen Programs $9,290 $5,878 ($3,412) $4,655
55
S -2
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Parks and Recreation (continued)
Children's Programs:
Personal services $102,265 $89,889 ($12,376) $100,764
Supplies 15,220 16,191 971 13,269
Services and other charges 5,014 4,555 (459) 4,768
Total Children's Programs 122,499 110,635 (11,864) 118,801
General Programs:
Personal services 24,362 29,863 5,501 30,123
Supplies 200 76 (124) 122
Services and other charges 34,935 39,150 4,215 39,177
Total General Programs 59,497 69,089 9,592 69,422
Community Center:
Personal services 356,015 423,075 67,060 405,811
Supplies 17,050 9,266 (7,784) 53,099
Services and other charges 70,800 77,048 6,248 42,462
Capital outlay 8,520 8,840 320
Total Community Center 452,385 518,229 65,844 501,372
Park Maintenance:
Personal services 586,130 513,694 (72,436) 519,662
Supplies 65,250 58,335 (6,915) 51,831
Services and other charges 293,693 301,444 7,751 272,077
Capital outlay 2,700 3,231 531 25,242
Total Park Maintenance 947,773 876,704 (71,069) 868,812
Total Parks and Recreation 2,267,089 2,205,018 (62,071) 2,216,098
Economic Development
Convention Bureau:
Services and other charges 342,000 392,805 50,805 397,507
Total Economic Development 342,000 392,805 50,805 397,507
Nondepartmental
Expenditures not Charged to
Departments:
Personal services 18,139 5,215 (12,924) 34,219
Supplies 27,000 28,029 1,029 25,793
Services and other charges 423,928 335,800 (88,128) 351,464
Capital outlay 11,450 3,012 (8,438) 8,313
Total Nondepartmental $480,517 $372,056 ($108,461) $419,789
56
S -2
City of Brooklyn Center (Continued from prior page)
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Administrative Service Reimbursement
Charged to other funds ($770,707) ($767,504) $3,203 ($795,737)
Total Administrative Service Reimbursement (770,707) (767,504) 3,203 (795,737)
Other Financing Uses
Operating transfers out:
Special Assessment Construction Fund 409,044 409,044 394,197
Capital Project Fund 245,700 245,700 100,000
Special Assessment Bonds Debt Service Fund 261,336 247,697 (13,639) 258,488
Police & Fire Building Debt Service Fund 785,492 759,436 (26,056) 779,553
Total Other Financing Uses 1,701,572 1,661,877 (39,695) 1,532,238
Total Expenditures and Other Financing Uses $14,423,638 $14,277,342 ($146,296) $13,825,030
57
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The Special Revenue Funds are established to account for revenues derived from taxes and /or otherspecific
p p
} revenue sources. These resources are usually restricted by State statute or by City Charter or ordinance to
finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting
period in which they become available and measurable. Expenditures are recognized in the accounting period in
which the related liability is incurred.
Housing and Redevelopment Authoritv Fund (H.R.A.I: This fund has authority to levy an ad valorem property tax
for the purpose of conducting housing and redevelopment projects. These projects are accounted for in the
E.D.A. Fund; all tax proceeds are transferred to that fund.
Economic Develooment Authoritv Fund (E.D.A.): This fund was established to account for the Economic
Development Authority (E.D.A.) of Brooklyn Center. The E.D.A. carries out development activities; it has authority
to operate an enterprise. The Earle Brown Heritage Center operates under this authority and a statement of its
operations can be found in the enterprise fund section of this report. The E.D.A. also does redevelopment and
housing projects, funded by an ad valorem property tax levy and transfers from the C.D.B.G. and H.R.A. funds.
Earle Brown Farm Tax Increment Financina District Fund: This fund has the authority to collect tax increments
which are used for the historic restoration of the Earle Brown Farm and for debt service payments of bonds which
were issued for the same purpose.
Tax Increment Districts No. 3 and No. 4 Funds,: These funds have the authority to collect tax increments which are
used for various redevelopment projects within the City and for debt service payments of bonds which were issued
for the same purpose.
Police Drua Forfeiture Fund: This fund was established to account for property and /or cash seized by Police
Department personnel.
Communitv Develooment Block Grant Fund (C.D.B.G.): The fund was established to account for funds received
under Title I of the Housing and Community Development Act of 1974. Transfers are made from this fund to the
Economic Development Authority Fund; projects are accounted for in the Economic Development Authority Fund.
City Initiatives Grant Fund,: Revenues and expenditures from grants received from outside entities are accounted
for in this fund. Grant programs for 2000 include several public safety grants, an after school enrichment
recreation grant and a local planning assistance grant.
58
City of Brooklyn Center
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 2001
Economic Earle Brown Tax
Development Tax Incr. Increment
Authority Financing District
Fund District No. 3
ASSETS
Cash and cash equivalents $530,010 $2,163,207
Investments 345,151 1,414,613
Accounts receivable 9,021
Delinquent taxes receivable 13,602
Due from other funds 502,447
Due from other governments 1,550 139,893
TOTAL ASSETS $899,334 $0 $4,220,160
LIABILITIES AND FUND BALANCES (DEFICITS)
Liabilities:
Accounts payable $95,403 $1,657 $137,591
Due to other funds 502,447
Accrued salaries payable 6,795
Accrued vacation and sick pay
Advances from other funds 698,143
Deferred revenue 13,602
Total Liabilities 115,800 1,202,247 137,591
Fund Balances (Deficits):
Reserved:
Bond proceeds
Unreserved 783,534 (1,202,247) 4,082,569
Total Fund Balances (Deficits) 783,534 (1,202,247) 4,082,569
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $899,334 $0 $4,220,160
59
' B -1
Tax
Increment Police Drug City
District Forfeiture Initiatives Totals
No. 4 Fund Grant Fund 2001 2000
$68,166 $37,775 $41,234 $2,840,392 $764,137
44,576 24,703 26,964 1,856,007 2,769,692
9,021 12,334
13,602 3,090
502,447 139,293
51,509 192,952 447,322
$112,742 $62,478 $119,707 $5,414,421 $4,135,868
$488 $25,445 $68,168 $328,752 $483,213
502,447 139,293
335 7,130
17,704
698,143 698,143
13,602 3,090
488 25,445 68,503 1,550,074 1,341,443
977,619
112,254 37,033 $51,204 3,864,347 1,816,806
112,254 37,033 51,204 3,864,347 2,794,425
$112,742 $62,478 $119,707 $5,414,421 $4,135,868
60
1
City of Brooklyn Center
Special Revenue Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, >�
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 2001
Housing
and Economic Earle Brown Tax
Redevelopment Development Tax Increment Increment
Authority Authority Financing District
Fund Fund District No.3
Revenues
Property taxes $147,123 $205,694 $1,035,349 $2,502,000
Intergovernmental 19,684 1,116,842
Investment earnings 39,312 146,493
Change in fair value of investments 100,202 6,628 95,775
Miscellaneous 57,863
Total Revenues 166,807 1,519,913 1,041,977 2,744,268
Expenditures
Personal services 197,686
Supplies 33
Services and other charges 1,249,143 1,657 507,423
Capital outlay 1,076,721
Interest 30,229 38,445
Total Expenditures 2,523,583 31,886 545,868
Excess (Deficiency) of Revenues
Over Expenditures 166,807 (1,003,670) 1,010,091 2,198,400
Other Financina (Uses) Sources
Sale of fixed assets 572,266
Operating transfers in 166,807
Operating transfers out (166,807) (1,390,000) (580,000)
Total Other Financing (Uses) Sources (166,807) 739,073 (1,390,000) (580,000)
(Deficiency) Excess of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses (264,597) (379,909) 1,618,400
Fund Balances (Deficits) January 1 1,048,131 (822,338) 2,464,169
Fund Balances (Deficits) December 31 $0 $783,534 ($1,202,247) $4,082,569
61
B -2
Tax Police
City
Increment Drug Community Initiatives
District Forfeiture Development Grant Totals
No. 4 Fund Block Grant Fund 2001 2000
$254,049 $4,144,215 $3,556,588
$206,960 1,343,486 2,239,000
$2,829 3,725 192,359 252,888
1,993 2,575 207,173 (113,679)
31,950 24,091 113,904 105,299
254,049 36,772 $0 237,351 6,001,137 6,040,096
12,611 210,297 190,390
1,405 4,375 5,813 14,615
16,713 2,360 178,169 1,955,465 2,312,192
33,563 78,598 1,188,882 1,703, 932
104,087 263 173,024 211
120,800 37,328 274,016 3,533,481 4,221,340
133,249 (556) 0 (36,665) 2,467,656 1,818,756
572,266 194,491
166,807 401,884
(2,136,807) (2,321,884)
(1,397,734) (1,725,509)
133,249 (556) (36,665) 1,069,922 93,247
(20,995) 37,589 87,869 2,794,425 2,701,178
$112,254 $37,033 $0 $51,204 $3,864,347 $2,794,425
62
66 = 3
City of Brooklyn Center
Housing and Redevelopment Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000
Budget Actual Budget Actual
Revenues
Property taxes $150,190 $147,123 ($3,067) $149,892
Intergovernmental 19,684 19,684 19,684
Total Revenues 169,874 166,807 (3,067) 169,576
Other Financing Uses
Operating transfers out (169,874) (166,807) 3,067 (169,576)
Excess (Deficiency) of
Revenues Over Other Financing Uses
Fund Balance January 1
Fund Balance December 31 $0 $0 $0 $0
i
63
' B_4
City of Brooklyn Center
' Economic Development Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
' (Under) 2000
Budget Actual Budget Actual
Revenues
Property taxes $210,229 $205,694 ($4,535) $210,588
Intergovernmental 1,116,842 1,116,842 1,812,425
Investment earnings 30,000 39,312 9,312 134,209
Change in fair value of investments 100,202 100,202 (49,279)
t Miscellaneous 9,000 57,863 48,863 32,759
Total Revenues 249,229 1,519,913 1,270,684 2,140,702
Expenditures
Personal services 190,774 197,686 6,912 182,426
Supplies 1,350 33 (1,317) 251
Services and other charges 461,591 1,249,143 787,552 2,008,456
Capital outlays 5,600 1,076,721 1,071,121 1,636,491
' Total Expenditures 659,315 2,523,583 1,864,268 3,827,624
Deficiency of Revenues
Over Expenditures (410,086) (1,003,670) (593,584) (1,686,922)
Other Financing Sources
Sale of fixed assets 572,266 572,266 194,491
Operating transfers in 410,086 166,807 (243,279) 401,884
' Total Other Financing Sources 410,086 739,073 328,987 596,375
Deficiency of Revenues
and Other Financing Sources
Over Expenditures (264,597) (264,597) (1,090,547)
Fund Balance January 1 1,048,131 1,048,131 2,138,678
Fund Balance December 31 $1,048,131 $783,534 ($264,597) $1,048,131
64
BB = 5 '
City of Brooklyn Center
Earle Brown Farm Tax Increment Financing District Fund '
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000 ,
Budget Actual Budget Actual
Revenues
Property taxes $1,171,554 $1,035,349 ($136,205) $1,186,908 '
Investment earnings 3,000 (3,000) 18,364
Change in fair value of investments 6,628 6,628 (7,163)
Total Revenues 1,174,554 1,041,977 (132,577) 1,198,109 '
Expenditures
Services and other charges 4,000 1,657 (2,343) 4,019 '
Interest 30,229 30,229
Total Expenditures 4,000 31,886 27,886 4,019 '
Excess (Deficiency) of
Revenues Over Expenditures 1,170,554 1,010,091 (160,463) 1,194,090
Other Financing Uses
Operating transfers out (1,390,000) (1,390,000) (1,360,000) '
Total Other Financing Uses (1,390,000) (1,390,000) (1,360,000)
Deficiency of Revenues
Over Expenditures
and Other Financing Uses (219,446) (379,909) (160,463) (165,910) '
Fund Deficit January 1 (822,338) (822,338) (656,428)
Fund Deficit December 31 ($1,041,784) ($1,202,247) ($160,463) ($822,338)
65
B_6
City of Brooklyn Center
' Tax Increment District No. 3 Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
' 2001
Actual Over
(Under) 2000
' Budget Actual Budget Actual
Revenues
Property taxes $2,614,327 $2,502,000 ($112,327) $1,999,665
Investment earnings 25,000 146,493 121,493 96,804
Change in fair value of investments 95,775 95,775 (55,033)
Total Revenues 2,639,327 2,744,268 104,941 2,041,436
Expenditures
Services and other charges 142,801 507,423 364,622 157,301
Interest 38,445 38,445
Total Expenditures 142,801 545,868 403,067 157,301
Excess of Revenues
Over Expenditures 2,496,526 2,198,400 (298,126) 1,884,135
Other Financing Uses
Operating transfers out (580,000) (580,000) (560,000)
' Total Other Financing Uses 580 000 580
Uses ( 580,000) ( ,000) (560,000)
' Excess of Revenues
Over Expenditures
and Other Financing Uses 1,916,526 1,618,400 (298,126) 1,324,135
Fund Balance January 1 2,464,169 2,464,169 1,140,034
Fund Balance December 31 $4,380,695 $4,082,569 ($298,126) $2,464,169
I '
66
B_7
City of Brooklyn Center
Tax Increment District No. 4 Fund 1
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
i 2001 ,
Actual Over
(Under) 2000 '
Budget Actual Budget Actual
Revenues
Property taxes $217,780 $254,049 $36,269 $9,535
Investment earnings 5,000 ($5,000) '
Change in fair value of investments
Total Revenues 222,780 254,049 $31,269 9,535
Expenditures
Services and other charges 212,000 16,713 ($195,287) 12,857
Interest 104,087 104,087 211
Total Expenditures 212,000 120,800 (91,200) 13,068
Excess (Deficiency) of
Revenues Over Expenditures 10,780 133,249 122,469 (3,533) '
Fund Deficit January 1 (20,995) (20,995) (17,462)
Fund (Deficit) Balance December 31 ($10,215) $112,254 $122,469 ($20,995) '
67
' BB = 8
City of Brooklyn Center
' Police Drug Forfeiture Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
' (Under) 2000
Budget Actual Budget Actual
Revenues
Forfeited drug money $20,000 $31,950 $11,950 $16,880
Investment earnings 2,829 2,829 2,078
Change in fair value of investments 1,993 1,993 (905)
' Total Revenues 20,000 36,772 16,772 18,053
Expenditures
Supplies 8,000 1,405 (6,595) 3,798
Services and other charges 2,000 2,360 360 2,611
Capital outlays 10,000 33,563 23,563
Total Expenditures 20,000 37,328 17,328 6,409
(Deficiency) Excess of Revenues
Over Expenditures (556) (556) 11,644
' Fund Balance January 1 37,589 37,589 25,945
Fund Balance December 31 $37,589 $37,033 ($556) $37,589
' 68
B - '
City of Brooklyn Center
Community Development Block Grant Fund ,
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
(Under) 2000 ,
Budget Actual Budget Actual
Revenues
Intergovernmental:
Federal Grants $240,212 ($240,212) $232,308 '
Total Revenues 240,212 (240,212) 232,308
Other Financing Uses
Operating transfers out (240,212) 240,212 (232,308)
Excess (Deficiency) of
Revenues Over Other Financing Uses '
Fund Balance January 1
Fund Balance December 31 $0 $0 $0 $0
69 '
B -10
City of Brooklyn Center
City Initiatives Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2001
2001
Actual Over
' (Under) 2000
Budget Actual Budget Actual
Revenues
Intergovernmental $150,000 $206,960 $56,960 $174,583
' Investment earnings 3,725 3,725 1,433
Change in fair value of investments 2,575 2,575 (1,299)
Miscellaneous 4,970 24,091 19,121 55,660
' Total Revenues 154,970 237,351 82,381 230,377
Expenditures
Personal services 8,500 12,611 4,111 7,964
Supplies 4,375 4,375 10,566
Services and other charges 71,470 178,169 106,699 126,948
Capital outlays 75,000 78,598 3,598 67,441
Interest 263 263
Total Expenditures 154,970 274,016 119,046 212,919
' (Deficiency) Excess of Revenues
Over Expenditures (36,665) (36,665) 17,458
Fund Balance January 1 87,869 87,869 70,411
Fund Balance December 31 $87,869 $51,204 ($36,665) $87,869
r
' 70
City of Brooklyn Center, Minnesota
DEBT SERVICE FUNDS
The Debt Service Funds were established to account for the accumulation of resources for
and the payment of principal and interest on long -term general obligation debt other than
revenue bonds and the City's liability for compensated absences.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the principal and interest are due.
The City's Debt Service Funds included in this section are:
General Obliaation Bonds Fund: This fund is used to account for the accumulation of
resources for payment of general obligation bonds and interest thereon.
Tax Increment Bonds Fund: This fund is used to account for the accumulation of resources for
payment of tax increment general obligation bonds and interest thereon. These bonds were
sold to finance the purchase and redevelopment of the historic Earle Brown Farm and other
various redevelopment projects within the City.
Special Assessment Bonds Fund: This 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.
71
I
C -1
City of Brooklyn Center
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 2001
General Tax Special
Obligation Increment Assessment Totals
Bonds Bonds Bonds 2001 2000
ASSETS
Cash and cash equivalents $736,716 $2,024,811 $1,834,880 $4,596,407 $3,480,432
Investments 94,935 160,562 608,433 863,930 1,259,561 '
Unremitted taxes 13,803 13,803
Delinquent taxes receivable $9,645 9,645
Special assessments receivable:
Deferred 3,428,179 3,428,179 3,545,518
Delinquent 27,826 64,247 92,073 30,088
TOTAL ASSETS $859,477 $2,185,373 $5,959,187 $9,004,037 $8,315,599
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts Payable $63 $750 $813 $1,626 $3,384 ,
Deferred revenue 27,826 3,502,071 3,529,897 3,575,606
Total Liabilities 27,889 750 3,502,884 3,531,523 3,578,990
Fund Balances:
Reserved for debt service 831,588 2,184,623 2,456,303 5,472,514 4,736,609 '
Total Fund Balances 831,588 2,184,623 2,456,303 5,472,514 4,736,609
TOTAL LIABILITIES AND ,
FUND BALANCES $859,477 $2,185,373 $5,959,187 $9,004,037 $8,315,599
72
C = 2
City of Brooklyn Center
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 2001
General Tax Special
Obligation Increment Assessment Totals
Bonds Bonds Bonds 2001 2000
Revenues
Property taxes $176,000 $176,000
Special assessments $1,029,378 1,029,378 $994,839
Intergovernmental $295,745 295,745 291,245
Investment earnings 18,175 20,146 82,914 121,235 141,277
Change in fair value of investments 16,397 18,550 65,021 99,968 (49,494)
Total Revenues 330,317 214,696 1,177,313 1,722,326 1,377,867
Expenditures
Principal 655,000 1,450,000 700,000 2,805,000 3,970,000
Interest 377,651 519,409 252,563 1,149,623 1,282,512
Fiscal agent fees 1,425 1,500 6,006 8,931 13,426
Total Expenditures 1,034,076 1,970,909 958,569 3,963,554 5,265,938
(Deficiency) Excess of Revenues
Over Expenditures (703,759) (1,756,213) 218,744 (2,241,228) (3,888,071)
Other Financina Sources (Uses)
Operating transfers in 759,436 1,970,000 247,697 2,977,133 4,508,039
Operating transfers out (1,550,000)
Total Other Financing Sources 759,436 1,970,000 247,697 2,977,133 2,958,039
Excess (Deficiency) of Revenues and
Other Sources Over Expenditures
and Other Uses 55,677 213,787 466,441 735,905 (930,032)
' Fund Balances January 1 775,911 1,970,836 1,989,862 4,736,609 5,666,641
Fund Balances December 31 $831,588 $2,184,623 $2,456,303 $5,472,514 $4,736,609
I
73
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are established to account for all resources used for the
construction or acquisition of capital facilities by the City except those financed by Enterprise
Funds.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the related liability is incurred.
The City's Capital Projects Funds included in this section are:
Capital Reserve Emerqencv Fund: This fund was established in 1997 to account for monies
held in reserve for catastrophic losses.
Capital Improvements Fund: This fund was established in 1968 to provide funds, and to
account for the expenditure of such funds, for majorcapital outlays including, but not limited to,
construction or acquisition of major permanent facilities having a relatively long life; and/or to
reduce debt incurred for capital outlays. The financing sources of the fund include ad valorem
taxation, transfers from other funds, issuance of bonds, federal and state grants, and
investment earnings.
Municipal State Aid for Construction Fund: This fund was established to account for the state
allotment of gasoline tax collections used for transportation related construction projects.
Special Assessment Construction Fund: This fund was established to account for the
resources and expenditures required for the acquisition and construction of capital facilities or
improvements financed wholly or in part by special assessments levied against benefitted
properties.
r
74
1
D1
City of Brooklyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 2001
Municipal
Capital State Aid Special
Reserve Capital for Assessment Totals
Emergency Improvements Construction Construction
Fund Fund Fund Fund 2001 2000 '
ASSETS
Cash and cash equivalents $810,967 $2,078,778 $309,995 $673,775 $3,873,515 $1,492,707
Investments 530,325 1,359,401 202,719 440,610 2,533,055 5,410,467
Accounts receivable 2,878 2,878 1,696
Special assessments:
Deferred 198,209 198,209 232,599
Delinquent 1,893 1,893 37,342
Due from other governments 455,391 6,676 462,067 892,906
Advance to other funds 950,000 593,069 1,543,069 1,593,069
TOTAL ASSETS $1,341,292 $4,388,179 $1,561,174 $1,324,041 $8,614,686 $9,660,786 r
LIABILITIES AND FUND BALANCES
Liabilities: r
Accounts payable $508,224 $438,555 $49,603 $996,382 $373,191
Contracts payable 3,000 37,000 40,000 17,801
Accrued salaries and wages 5,959 5,959
Deferred revenue 455,391 236,462 691,853 368,432 '
Total Liabilities 508,224 896,946 329,024 1,734,194 759,424
Fund Balances:
Reserved:
Advances to other funds 950,000 593,069 1,543,069 1,593,069
Unreserved $1,341,292 2,929,955 71,159 995,017 5,337,423 7,308,293
Total Fund Balances 1,341,292 3,879,955 664,228 995,017 6,880,492 8,901,362
TOTAL LIABILITIES AND
FUND BALANCES $1,341,292 $4,388,179 $1,561,174 $1,324,041 $8,614,686 $9,660,786
r
r
r
r
75 r
i
D -2
City of Brooklyn Center
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 2001
Municipal
Capital State Aid Special
Reserve Capital for Assessment
Emergency Improvements Construction Construction Totals
Fund Fund Fund Fund 2001 2000
Revenues
Special assessments $102,172 $102,172 $289,596
Intergovernmental $50,000 50,000 1,293,108
Investment earnings $65,479 $232,200 35,057 28,523 361,259 516,234
Change in fair value of
investments 63,718 216,195 99,540 47,404 426,857 (174,024)
i Miscellaneous 5,585 6,823 12,408 10,000
Total Revenues 129,197 453,980 184,597 184,922 952,696 1,934,914
Expenditures
Personal services 8,206 25,152 233,397 266,755 271,304
Supplies 354 19,324 788 20,466 510
Services and other charges 426,238 428,391 243,957 1,098,586 617,988
Capital outlay 2,044,297 624,113 1,315,078 3,983,488 4,681,941
Interest 7,515 7,515
Total Expenditures 2,479,095 1,096,980 1,800,735 5,376,810 5,571,743
Excess (Deficiency) of Revenues
Over Expenditures 129,197 (2,025,115) (912,383) (1,615,813) (4,424,114) (3,636,829)
Other Financino Sources
Proceeds from sale of bonds 730,000 730,000 735,000
Operating transfers in 571,200 409,044 980,244 569,197
Total Other Financing Sources 571,200 1,139,044 1,710,244 1,304,197
Excess (Deficiency) of Revenues
and Other Financing Sources
Over Expenditures 129,197 (1,453,915) (912,383) (476,769) (2,713,870) (2,332,632)
Fund Balances January 1 1,212,095 4,865,870 1,576,611 1,246,786 8,901,362 10,553,994
Equity Transfers In 468,000 225,000 693,000 680,000
Fund Balances December 31 $1,341,292 $3,879,955 $664,228 $995,017 $6,880,492 $8,901,362
76
S -3
City of Brooklyn Center
Capital Improvements Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 2001
Project (Over) Under
2001 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Police Station Project (98 -09) $4,345,000 ($14,901) $5,188,062 ($843,062)
West Fire Station Project (98 -10) 2,539,000 32,714 3,174,624 (635,624)
East Fire Station Project (98 -11) 1,106,000 3,990 1,057,552 48,448
Civic Center Addition (99 -08) 3,239,960 1,916,390 2,031,285 1,208,675
Park Improvements (00 -14) 58,600 39,804 106,911 (48,311)
Civic Center Parking Lots (00 -15) 325,000 365 365 324,635
Paint Garage North Wall (0 1 -09) 75,000 30,801 30,801 44,199
Evergreen Park Improvements (01 -10) 230,000 245,355 245,355 (15,355)
Grandview Park Improvements (01 -11) 100,000 111 111 99,889
Palmer Lake Park Improvements (01 -12) 40,000 41,788 41,788 (1,788)
Centerbrook Storage Building (01 -14) 180,500 158,306 158,503 21,997
City Property Special Assessments 38,495 24,372 24,372 14,123
Totals $12,277,555 $2,479,095 $12,059,729 $217,826
IWI MI MI M M M M M M M
S -4
City of Brooklyn Center
Municipal State Aid for Construction Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 2001
Project (Over) Under
2001 to Date Expended
Project Appropriation Expenditures Expenditures Appropriations
69th Avenue Improvements (95 -05) $1,774,882 $214,959 $1,910,426
($135,544)
Brooklyn Boulevard Improvements (99 -16, 99 -04)) 2,276,845 575,951 2,327,022 (50,177)
Garden City Central Street Improvements (00 -01) 300,800 1,199 473,258 (172,458)
73rd Avenue Improvements (00 -04) 199,018 7,956 202,640 (3,622)
Palmer Lake Trails (00 -17) 120,000 2,083 4,703 115,297
Brooklyn Boulevard Landscaping (00 -21) 10,000 5,519 6,798 3,202
Garden City North Street Improvements (01 -01) 50,000 43,611 43,611 6,389
Miscellaneous Concrete Reapirs (01 -07) 50,000 16,643 16,643 33,357
LED Green Bulb Removal and Replacement (01 -08) 40,000 28,242 28,242 11,758
Southwest Area Street Improvements (02 -01) (22,983) - -
France Avenue Relocation (02 -04) 223,800 223,800 (223,800)
Totals $4,821,545 $1,096,980 $5,237,143 ($415,598)
00
S -5
City of Brooklyn Center
Special Assessment Construction Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 2001
Project (Over) Under
2001 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Southeast Neighborhood (99 -01) $608 $608 ($608)
Garden City Improvement (00 -01) $1,695,111 (10,814) 1,686,597 8,514
73rd Avenue Improvement (00 -04) 52,320 2,275 52,321 (1)
Garden City North Improvement (01 -01) 1,942,562 1,615,207 1,659,288 283,274
Reforestation of 2000 Improvement Projects (01 -13) 38,000 35,639 56,572 (18,572)
Southwest Area Improvements (02 -01) 90,643 90,643 (90,643)
Garden City South Improvements (02 -05) 43,000 47,009 47,009 (4,009)
Diseased Tree Removals 20,168 20,168 (20,168)
Totals $3,770,993 $1,800,735 $3,613,206 $157,787
' City of Brooklyn Center, Minnesota
' ENTERPRISE FUNDS
' The Enterprise Funds were established to account for the financing of self - supporting activities
of the City which render services on a user charge basis to the general public.
Revenues and expenses in these funds are recognized on the accrual basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
objectively measurable. Expenses are recognized in the period incurred, if objectively
' measurable.
The City's Enterprise Funds included in this section are:
' Municipal Liauor Fund: This fund accounts for the operations of the City's municipal off -sale
liquor stores.
' Golf Course Fund: This fund accounts for operations of Centerbrook Golf Course, a 9 hole,
par 3 course owned by the City.
Earle Brown Heritage Center Fund: This fund accounts for the operation of a convention
center. The Earle Brown Heritage Center is a pioneer farmstead that has been historically
t 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.
Recvclinq and Refuse F -
Fund: This fund accounts for the operation of a state mandated
recycling program. Expansion into refuse collection will take place only when there is a clear
advantage to be achieved by it.
Water Utilitv Fund: This fund accounts for the provision of water to customers. Administration,
wells, water storage, and distribution are included.
Sanitary Sewer Fund: This fund accounts for the collection and pumping of sanitary sewage
' through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan
Council Environmental Services whose fees represent about 75% of this fund's expenses.
Storm Drainaqe Fund: This fund accounts for the operations and improvements of the storm
water drainage system. It incorporates not only the storm sewer system, but also water
structures such as holding ponds and facilities to improve water quality. Fees are based upon
the amount of water running off a property and vary with both size and absorption
characteristics of the parcel.
80
City of Brooklyn Center
Enterprise Funds
COMBINING BALANCE SHEET '
December 31, 2001
E. Brown
Municipal Golf Heritage Recycling ,
Liquor Course Center & Refuse
ASSETS Fund Fund Fund Fund
Current Assets: '
Cash and cash equivalents $381,151 $50,340 $254,639 $35,209
Investments 245,458 32,331 166,258 23,025
Accounts receivable - net 1,080 807 243,785 17,616 '
Accrued revenue 26,342
Special assessments receivable:
Deferred
Delinquent ,
Due from other governments 111,971
Due from other funds
Inventories 258,828 10,956 24,850 '
Prepaid expenses 9,297 4,833
Total Current Assets 1,007,785 94,434 694,365 102,192
Fixed Assets: ,
Mains and lines
Structures 317,090 11,318,307
Equipment 269,859 31,572 977,847 '
Land 1,391,711 1,493,300
Land improvements 77,450 388,985
269,859 1,817,823 14,178,439 '
Less: Accumulated Depreciation 43,104 175,070 3,705,411
Total Net Fixed Assets 226,755 1,642,753 10,473,028
Total Assets $1,234,540 $1,737,187 $11,167,393 $102,192 '
LIABILITIES AND FUND EQUITY_
Current Liabilities:
Accounts payable $128,407 $9,723 $389,838 $625
Contracts payable
Due to other funds
Accrued salaries payable 11,977 2,715 22,509
Accrued vacation and sick pay
Accrued interest payable
Current portion of long -term debt 50,000
Total Current Liabilities 140,384 62,438 412,347 625 '
Long -Term Liabilities:
Advances from other funds 900,000 '
Other long term liabilities
Bonds payable
Total Long -term Liabilities 900,000
Fund Equity:
Contributed Capital 643,725 10,121,550
Retained earnings '
Reserved:
Debt service
Special assessments
Unreserved 1,094,156 131,024 633,496 101,567 ,
Total Fund Equity 1,094,156 774,749 10,755,046 101,567
Total Liabilities and Fund Equity $1,234,540 $1,737,187 $11,167,393 $102,192 ,
81
' E -1
i
Water Sanitary Storm
utility Sewer Drainage Totals
Fund Fund Fund 2001 2000
$1,066,268 $606,582 $2,394,189 $824,809
697,278 396,670 1,561,020 2,970,031
' 152,401 244,721 $93,413 753,823 716,127
171,571 344,577 165,496 707,986 649,125
205,060 3,739 18,364 227,163 171,397
34,268 1 34,269 21,828
3,175 115,146 163,991
21,315 21,315 84,636
22,132 316,766 397,281
118,429 132,559 122,818
2,373,468 1,714,718 277,274 6,264,236 6,122,043
' 13,547,963 11,222,671 10,967,916 35,738,550 33,340,939
5,845,417 2,950,028 20,430,842 20,779,526
154,573 212,953 11,899 1,658,703 1,475,285
23,093 3,389 287,158 3,198,651 3,198,651
13,857 10,786 491,078 491,078
' 19,584,903 14,389,041 11,277,759 61,517,824 59,285,479
5,747,629 3,132,586 567,322 13,371,122 12,392,023
13,837,274 11,256,455 10,710,437 48,146,702 46,893,456
$16,210,742 $12,971,173 $10,987,711 $54,410,938 $53,015,499
' $209,918 $9,964 $748,475 $1,155,592
67,302 13,000 $13,000 93,302 63,302
21,315 21,315 84,636
' 11,297 3,463 51,961 59,505
101,462
18,833 18,833 22,795
' 200,000 250,000 240,000
288,517 26,427 253,148 1,183,886 1,727,292
900,000 950,000
56,302
660,000 660,000 860,000
660,000 1,560,000 1,866,302
4,997,510 5,668,426 863,964 22,295,175 22,618,597
240,100 240,100 239,950
' 239,328 3,739 18,365 261,432 193,226
10,685,387 7,272,581 8,952,134 28,870,345 26,370,132
15,922,225 12,944,746 10,074,563 51,667,052 49,421,905
' $16,210,742 $12,971,173 $10,987,711 $54,410,938 $53,015,499 82
City of Brooklyn Center
Enterprise Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
E. Brown
Municipal Golf Heritage
Liquor Course Center
, Operatina Revenues Fund Fund Fund
Sales and user fees $3,552,152 $320,105 $3,920,676
Cost of sales 2,696,042 33,887 490,300
Gross Margin 856,110 286,218 3,430,376
Ooeratina Expenses
Personal services 333,850 152,382 1,850,268
Supplies 15,096 25,620 215,874 ,
Other services 89,071 46,195 527,716
Insurance 8,928 8,449 41,714
Utilities 19,146 14,264 181,830
Rent 140,873 85,786
Depreciation 36,488 14,736 416,296
Total Operating Expenses 643,452 261,646 3,319,484 '
Operating Income (Loss) 212,658 24,572 110,892
Nonooeratina Revenues or Ex_enses(-)
Investment earnings 31,727 6,569 17,907
Change in fair value of investments 23,509 5,819 3,179 ,
Special assessments
Other revenue 4,840
Interest and fiscal agent fees (737) (1,235)
Loss on sale of fixed assets
Total Nonoperating Revenues or Expenses( -) 60,076 11,651 19,851 ,
Income Before Operating Transfers 272,734 36,223 130,743
Operating Transfers Out 110,000 (10,000)
Net Income 162,734 26,223 130,743 ,
Depreciation on contributed assets
that reduces contributed capital
323,422 '
Retained Earnings Jan. 1 931,422 104,801 179,331
Retained Earnings Dec. 31 $1,094,156 $131,024 $633,496 ,
83 '
E -2
Recycling Water Sanitary Storm
& Refuse Utility Sewer Drainage Totals
' Fund Fund Fund Fund 2001 2000
$211,388 $1,520,950 $2,604,998 $1,129,502 $13,259,771 $12,968,408
3,220,229 3,304,423
211,388 1,520,950 2,604,998 1,129,502 10,039,542 9,663,985
315,805 136,201 100,893 2,889,399 3,054,611
' 1 53,738 1 6,277 426,605 422,065
214,846 348,917 1,591,099 52,613 2,870,457 2,785,912
143 11,742 7,218 3,604 81,798 65,212
128,774 26,766 370,780 333,052
226,659 193,774
414,965 239,381 170,302 1,292,168 1,200,104
' 214,989 1,373,941 2,016,942 327,412 8,157,866 8,054,730
(3,601) 147,009 588,056 802,090 1,881,676 1,609,255
3,714 103,255 59,238 222,410 275,169
3,875 105,247 73,948 10,375 225,952 (93,118)
20,253 289 270,365 290,907 353,157
4,840 10,275
(53,166) (55,138) (83,507)
(30,989)
7,589 228,755 133,475 227,574 688,971 430,987
3,988 375,764 721,531 1,029,664 2,570,647 2,040,242
(170,500) (35,000) (325,500) (75,000)
3,988 205,264 721,531 994,664 2,245,147 1,965,242
323,422 338,788
97,579 10,719,451 6,554,789 8,215,935 26,803,308 24,499,278
$101,567 $10,924,715 $7,276,320 $9,210,599 $29,371,877 $26,803,308
84
City of Brooklyn Center '
Enterprise Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2001
E. Brown
Municipal Golf Heritage Recycling '
Liquor Course Center & Refuse
Cash flows from ooeratino activities: Fund Fund Fund Fund
Operating income (loss) $212,658 $24,572 $110,892 ($3,601)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation 36,488 14,736 416,296
Changes in assets and liabilities: '
Receivables 52,015 (807) 95,581 (3,230)
Inventories 67,816 110 7,906
Prepaid expenses 2,947 (1,383)
Payables 9,196 8,614 (359,960) (625) '
Accrued expenses (56,545) (6,223) (24,051)
Accrued interest payable
Other nonoperating income 4,840
Net cash provided by (used for)
operating activities 329,415 41,002 245,281 (7,456)
Cash flows from noncaoital financino activities: ,
Proceeds from interfund payables /receivables
Principal repayments on long term debt
Principal repayments on advance (50,000) '
Interest paid on advance from other funds
Interest paid on interfund payables /receivables
Interest paid to other entities (737) (1,235)
Operating transfers out (110,000) (10,000) '
Net cash used for noncapital
financing activities (110,000) (60,737) (1,235) '
Cash flows from caoital and related
financing activities:
Capital contributions '
Acquisition and construction of capital assets (8,599) (5,352) (38,092)
Proceeds of sale of fixed assets
Principal paid on revenue bonds
Interest paid on revenue bonds
Net cash used for capital and related
financing activities (8,599) (5,352) (38,092)
Cash flows from investing activities:
Investments purchased (15,512) (2,043) (11,493) (1,455)
Investments sold or matured 72,628 49,926 27,843 '
Interest on investments 31,727 6,569 17,907 3,714
Net cash provided by
investing activities 88,843 54,452 6,414 30,102 ,
Net increase (decrease) in cash and
cash equivalents 299,659 29,365 212,368 22,646
Cash and cash equivalents at '
beginning of the year 81,492 20,975 42,271 12,563
Cash and cash equivalents at
end of the year $381,151 $50,340 $254,639 $35,209
Non cash items:
Change in fair value of investments $23,509 $5,819 $3,179 $3,875 ,
85
' E -3
' Water Sanitary Storm
utility Sewer Drainage Totals
Fund Fund Fund 2001 2000
' $147,009 $588,056 $802,090 $1,881,676 $1,609,255
414,965 239,381 170,302 1,292,168 1,200,104
(81,019) (85,206) (29,932) (52,598) (227,108)
4,683 80,515 44,061
(11,305) (9,741) 2,325
108,803 (110,853) (32,293) (377,118) 124,037
(14,433) (7,461) (293) (109,006) 22,699
(3,962) (3,962) (3,675)
20,253 289 270,365 295,747 363,432
600,261 612,901 1,176,277 2,997,681 3,135,130
' (63,321) (63,321) 84,636
(56,302) (56,302) (56,302)
(50,000) (621,343)
(515)
(23,848)
' (1,972)
(170,500) (35,000) (325,500) (75,000)
' (226,802) (98,321) (497,095) (692,372)
23,605
(1,048,031) (600,176) (845,165) (2,545,415) (3,769,812)
221,241
(190,000) (190,000) (180,000)
(53,166) (53,166) (59,144)
I
(1,048,031) (600,176) (1,088,331) (2,788,581) (3,764,110)
(44,065) (25,068) (99,636) (2,142,741)
1,199,529 374,300 10,375 1,734,601 3,102,790
103,255 59,238 222,410 275,169
' 1,258,719 408,470 10,375 1,857,375 1,235,218
584,147 421,195 1,569,380 (86,134)
' 482,121 185,387 824,809 910,943
$1,066,268 $606,582 $0 $2,394,189 $824,809
$105,247 $73,948 $10,375 $225,952 ($93,118) 86
EE = 4
City of Brooklyn Center
Municipal Liquor Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, ,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
2001 2000
Sales ,
Liquor $1,167,470 $1,168,994
Wine 400,688 373,666
Beer 1,829,213 1,841,592
Soft drinks 53,960 59,319
Other merchandise 100,821 141,258
Total Sales 3,552,152 3,584,829
Less: Cost of Sales 2,696,042 2,734,318 ,
Gross Margin 856,110 850,511
Operating Expenses
Personal services 333,850 415,887
Supplies 15,096 20,989 '
Other services 89,071 99,258
Insurance 8,928 9,538
Utilities 19,146 19,481 ,
Rent 140,873 117,659
Depreciation 36,488 14,018
Total Operating Expenses 643,452 696,830 '
Operating Income 212,658 153,681 '
Nonoperatina Revenues (Expenses)
Investment earnings 31,727 30,929
Change in fair value of investments 23,509 (12,738) ,
Other revenue 4,840 4,189
Interest and fiscal agent fees (515) '
Loss on sale of fixed assets (30,989)
Total Nonoperating Revenues (Expenses) 60,076 (9,124) ,
Operating Transfers to Other Funds 110,000 75,000
Net Income 162,734 69,557 ,
Retained Earnings January 1 931,422 861,865
Retained Earnings December 31 $1,094,156 $931,422
87 ,
EE = 5
City of Brooklyn Center
Golf Course Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
2001 2000
' Ooeratina Revenues
Green fees $240,258 $272,907
Rentals 11,411 12,509
' Leagues 13,478 12,522
Golf lessons 4,405 5,555
Concessions 30,757 33,214
Merchandise 17,427 20,378
Pop machine 1,029 1,362
Miscellaneous 1,340 1,064
II' Total Operating Revenues 320,105 359,511
' Less: Cost of Sales 33,887 36,677
Gross Margin 286,218 322,834
' Operatina Expenses,
Personal services 152,382 148,450
' Supplies 25,620 20,196
Other services 46,195 44,372
Insurance 8,449 8,010
' Utilities 14,264 13,617
Depreciation 14,736 13,837
Total Operating Expenses 261,646 248,482
'
Operating Income P 9 e 24,572 74,352
Nonooeratina Revenues ( Expenses)
Investment earnings 6,569 6,555
Change in fair value of investments 5,819 (3,203)
Interest and fiscal agent fees (737)
' Total Nonoperating Revenues (Expenses) 11,651 3,352
Operating Transfers to Other Funds 10,000
' Net Income 26,223 77,704
Retained Earnings January 1 104,801 27,097
Retained Earnings December 31 $131,024 $104,801
88
EE_6
City of Brooklyn Center
Earle Brown Heritage Center Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, ,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
2001 2000 '
Operatina Revenues
Conventions $1,128,895 $1,022,997
Catering 2,617,576 2,702,041
Inn on the Farm 111,576 207,561 '
Office Rents 62,629 60,138
Total Operating Revenues 3,920,676 3,992,737
Less: Cost of Sales 490,300 533,428
Gross Margin 3,430,376 3,459,309
Operatina Expenses '
Personal services 1,850,268 1,955,572
Supplies 215,874 230,784
Other services 527,716 481,383 '
Insurance 41,714 30,504
Utilities 181,830 154,643
Rent 85,786 76,115 '
Depreciation 416,296 405,284
Total Operating Expenses 3,319,484 3,334,285
Operating Income 110,892 125,024
Nonoperatina Revenues (Expenses)
Investment earnings 17,907
Change in fair value of investments 3,179 ,
Interest and fiscal agent fees (1,235) (23,848)
Total Nonoperating Revenues (Expenses) 19,851 (23,848) '
Net Income 130,743 101,176
Depreciation on contributed assets that ,
reduces contributed capital 323,422 338,788
Retained Earnings (Deficit) January 1 179,331 (260,633) '
Retained Earnings December 31 $633,496 $179,331 '
89
City of Brooklyn Center E -7
Recycling and Refuse Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
' Operatina Revenues 2001 2000
Recycling service fees $211,388 $210,168
Operatina Expenses
Other services 214,846 214,770
Insurance 143 119
Total Operating Expenses 214,989 214,889
' Operating Loss (3,601) (4,721)
' Nonoperatina Revenues (Expenses)
Investment earnings 3,714 4,556
Change in fair value of investments 3,875 (1,851)
' Total Nonoperating Revenues (Expenses) enses Ex 7,589 2,705
( p
Net Income (Loss) 3,988 (2,016)
Retained Earnings January 1 97,579 99,595
Retained Earnings December 31 $101,567 $97,579
90
City of Brooklyn Center E -8
Water Utility Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, '
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
2001 2000
Operatina Revenues
Service to customers $1,304,117 $1,219,961
Sale of meters 29,886 2,411 '
Penalties 85,998 73,174
Rentals 100,949 52,675
Total Operating Revenues 1,520,950 1,348,221
Operatina Expenses ,
Personal services 315,805 314,651
Supplies 153,738 138,493 t
Contractual services 348,917 348,149
Insurance 11,742 8,433 ,
Utilities 128,774 121,326
Depreciation 414,965 400,358
Total Operating Expenses 1 373 941 1 331 410 '
g p ,
Operating Income 147,009 16,811 '
Nonoperatinq Revenues (Expenses) ,
Investment earnings 103,255 142,820
Change in fair value of investments 105,247 (39,259)
Special assessments (for hookups & delinquencies) 20,253 39,775
Other 6,086
Total Nonoperating Revenues (Expenses) 228,755 149,422
Operating Transfers to Other Funds 170,500
Net Income 205,264 166,233 '
Retained Earnings January 1 10,719,451 10,553,218
Retained Earnings December 31 $10,924,715 $10,719,451
91
E9
City of Brooklyn Center
Sanitary Sewer Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
� 2001 2000
Operating Revenues
Service to customers $2,604,998 $2,398,323
Operatina Expenses
Personal services 136,201 120,051
Supplies 16,277 11,128
Contractual services 213,555 198,209
Metropolitan Council Environmental Services 1,377,544 1,348,709
Insurance 7,218 5,962
Utilities 26,766 23,985
Depreciation 239,381 213,401
Total Operating Expenses 2,016,942 1,921,445
Operating Income 588,056 476,878
Nonoperatina Revenues (Expenses)
Investment earnings 59,238 90,309
Change in fair value of investments 73,948 (36,067)
Special assessments for hookups and delinquencies 289 314
Total Nonoperating Revenues (Expenses) 133,475 54,556
Net Income 721,531 531,434
Retained Earnings January 1 6,554,789 6,023,355
Retained Earnings December 31 $7,276,320 $6,554,789
92
E -10
City of Brooklyn Center
Storm Drainage Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
2001 2000
Operating Revenues
Service to customers $1,129,502 $1,074,619
Operating Expenses
Personal services 100,893 100,000
Supplies 475
Contractual services 52,613 51,062
Insurance 3,604 2,646
Depreciation 170,302 153,206
Total Operating Expenses 327,412 307,389
Operating Income 802,090 767,230
Nonoperatina Revenues ( Expenses)
Investment earnings
Change in fair value of investments 10,375
Special assessments 270,365 310,588
Special assessments interest 2,480
Intergovernmental
Other revenue
Interest and fiscal agent fees (53,166) (59,144) ,
Total Nonoperating Revenues (Expenses) 227,574 253,924
Operating Transfers to Other Funds 35,000
Net Income 994,664 1,021,154
,
Retained Earnings ,January 1 8,215,935 7,194,781
Retained Earnings December 31 $9,210,599 $8,215,935
93
City of Brooklyn Center, Minnesota
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement basis, for the financing
of goods or services provided by one department to other departments of the City.
Revenues and expenses in these funds are recognized on the accrual basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
measurable. Expenditures are recognized in the accounting period in which they are incurred.
The City's Internal Service Funds included in this section are:
Public Emplovees Compensated Absences Fund: This fund accounts for p a Y ment of unused
vacation and sick leave time and the allocation of such costs to user departments.
Public Emplovees Retirement Fund: This fund accounts for certain health care insurance
benefits for City employees who retire before age 65. Substantially all of the City's full -time
police and fire employees and all other full -time employees hired before July 1, 1989 may be
eligible for those benefits from the time they qualify for an unreduced PERA pension until they
reach age 65 or become eligible for Medicare. In the event that future costs would exceed
earnings, other funds would be charged for the costs associated with their employees.
Central Garage Fund: This fund was established to account for the acquisition and
maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment
maintenance, repair, and replacement will be provided from rental rates which the Central
Garage charges City operating departments for use of the equipment.
' � 94
F -1
City of Brooklyn Center
Internal Service Funds
COMBINING BALANCE SHEET
December 31, 2001
Public
Employees Public
Compensated Employees Central
Absences Retirement Garage Totals
ASSETS Fund Fund Fund 2001 2000
Current Assets:
Cash and cash equivalents $443,317 $933,257 $2,472,372 $3,848,946 $1,107,681
Investments 289,904 610,297 1,616,789 2,516,990 4,014,899
Accounts receivable 6,264 4,115 10,379 8,014
Inventories 13,258 13,258 11,273
Total Current Assets 733,221 1,549,818 4,106,534 6,389,573 5,141,867
Fixed Assets:
Equipment 5,934,770 5,934,770 5,727,814
Less: Accumulated depreciation 3,067,896 3,067,896 2,738,853
Total net fixed assets 2,866,874 2,866,874 2,988,961 ,
TOTAL ASSETS $733,221 $1,549,818 $6,973,408 $9,256,447 $8,130,828
LIABILITIES AND FUND EQUITY
Current Liabilities:
Accounts payable $137 $15,929 $16,066 $16,124
Accrued salaries payable 9,001 9,001 9,750
Accrued vacation and sick pay 29,515
Accrued health insurance liability 1,423,243
Total Current Liabilities 137 24,930 25,067 1,478,632
Long -term Liabilities:
Accrued vacation and sick pay $733,221 733,221
Accrued health insurance liability 1,549,681 1,549,681
Total Long -term Liabilities 733,221 1,549,681 2,282,902
Fund Equity: ,
Contributions:
General Fund 803,020 803,020 823,034
Debt Service Funds 1,128,825 1,128,825 1,156,959
Capital Projects Funds 6,829 6,829 6,999
Enterprise Funds 497,284 497,284 509,678
General Fixed Asset Account Group 495,213 495,213 507,556
Total Contributions 2,931,171 2,931,171 3,004,226
Retained Earnings:
Unreserved 4,017,307 4,017,307 3,647,970
Total Fund Equity 6,948,478 6,948,478 6,652,196
TOTAL LIABILITIES AND FUND EQUITY $733,221 $1,549,818 $6,973,408 $9,256,447 $8,130,828
95
I'I F-2
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2001
Public
Employees Public
Compensated Employees Central
Absences Retirement Garage Totals
Fund Fund Fund 2001 2000
Operatina Revenues
Billings to departments $1,069,164 $1,069,164 $1,063,756
Sales 15,882 $15,882 70,121
Total Operating Revenues 1,085,046 1,085,046 1,133,877
Operatina Expenses
Personal services $150,957 258,449 409,406 351,535
Supplies 250,085 250,085 228,422
Other services 65,585 65,585 62,575
Insurance 51,788 51,788 48,716
Utilities 2,629 2,629 3,205
Depreciation 552,091 552,091 684,448
Total Operating Expenses 150,957 1,180,627 1,331,584 1,378,901
Operating Loss (150,957) (95,581) (246,538) (245,024)
Nonoperatina Revenues (Exoenses)
Investment earnings 75,894 201,487 277,381 305,458
Change in fair value of investments 75,063 190,376 265,439 (124,516)
Total Nonoperating Revenues (Expenses) 150,957 391,863 542,820 180,942
Net Income (Loss) 296,282 296,282 (64,082)
Depreciation on contributed assets that
reduces contributed capital 73,055 73,055 170,300
Retained Earnings January 1 3,647,970 3,647,970 3,541,752
Retained Earnings December 31 $0 $0 $4,017,307 $4,017,307 $3,647,970
96
i
F -3
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 2001
Public
Employees Public
Compensated Employees Central
Absences Retirement Garage Totals
Fund Fund Fund 2001 2000
Cash flows from operating activities:
Operating loss ($150,957) ($95,581) ($246,538) ($245,024)
Adjustments to reconcile operating
loss to net cash (used for) provided by
operating activities:
Depreciation 552,091 552,091 684,448
Changes in assets and liabilities:
Accounts receivable ($3,191) 826 (2,365) 13,481
Inventories (1,985) (1,985) 1,299
Accounts payable 31 (89) (58) (13,062)
Accrued salaries and leave 733,221 (30,264) 702,957 1,762
Accrued health insurance liability 126,438 126,438 53,352 '
Net cash provided by (used for) operating activities 733,221 (27,679) 424,998 1,130,540 496,256
Cash flows from capital and related
financina activities:
Acquisition of fixed assets (430,004) (430,004) (646,600)
Net cash used for capital and related financing activities (430,004) (430,004) (646,600)
Cash flows (used for) Drovided by investing activities:
Investments purchased (289,904) (38,568) (102,175) (430,647) (2,896,564)
Investments sold or matured 616,497 1,577,498 2,193,995 3,103,773
Interest on investments 75,894 201,487 277,381 305,458
Net cash (used for) provided by investing activities (289,904) 653,823 1,676,810 2,040,729 512,667 ,
Net increase in cash
and cash equivalents 443,317 626,144 1,671,804 2,741,265 362,323
Cash and cash equivalents at beginning
of the year 307,113 800,568 1,107,681 745,358
Cash and cash equivalents at end of
the year $443,317 $933,257 $2,472,372 $3,848,946 $1,107,681
Non cash items:
Change in fair value of investments $75,063 $190,376 $265,439 ($124,516)
97
City of Brooklyn Center, Minnesota
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group was established to account forthe City's fixed assets
which are not accounted for in an enterprise fund, are tangible in nature, have a life longer
than the current fiscal year, and have a significant value. Depreciation is not recorded on
those assets.
98
City of Brooklyn Center a-6
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 2001
January 1, December 31,
2001 2001
Balance Acquisitions Disposals Balance
Investments in General Fixed Assets
Land $3,551,630 $95,000
Buildings and im provements 15686903 2,237,909 $3,646,630
, ,
Park improvements $ 30,305 17,894,507
Furniture
3,701,175 270,804 3,971,979
1,263,568 102,389 66,725
Departmental equipment 1,121,699 1 2 99, 142,289 69,489 1,194,499 232
Total Investments in General
Fixed Assets $25,324,975 $2,848,391 $166,519
$28,006,847
Sources of Investments
General Indebtedness $10,613,877
General Fund revenues $712,083 $11,326,547
6,556,350 1,581,083 166,519
Liquor store income 216,536 363,312 7,970,914
Contributions 579,848
244,942 158,305
Capital projects funds 6,948,457 403,247
Federal grants 6,948,457
744,813 33,021 777,834
Total Sources of Investments $25,324,975 $2,848,391
$166,519 $28,006,847
99
SS = 7
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 2001
Buildings and Furniture and
Function Land Improvements Improvements Equipment Total
General government $1,172,766 $417,341 $1,590,107
Government buildings 406,070 $17,030,579 $313,342 438,099 18,188,090
Public safety 2,500 118,624 9,955 1,032,578 1,163,657
Public works 3,625 214,522 218,147
Recreation 13,821 237,071 250,892
Parks 2,065,294 731,483 3,645,057 154,120 6,595,954
Totals $3,646,630 $17,894,507 3 971
$ ,979 $2,493,731 $28,006,847
100
S = 8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 2001
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 2001 Additions Deductions 2001
General e al government $1,604,317 $19,881 $34,091 $1,590,107
Government buildings 16,045,095 2,157,896 14,901 18,188,090
Public safety 994,002 262,790 93,135 1,163,657
Public works 193,399 33,737 8,989 218,147
Recreation 233,979 16,913 250,892
Parks 6,254,183 357,174 15,403 6,595,954
Totals $25,324,975 $2,848,391 $166,519 $28,006,847
101
City of Brooklyn Center, Minnesota
GENERAL LONG -TERM DEBT ACCOUNT GROUP,
The General Long -Term Debt Account Group was established to account for the City's
unmatured general obligation long -term debt that is secured by the full faith and credit of the
City and is not the primary obligation of an Enterprise Fund of the City.
102
I
G
City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG -TERM DEBT
December 31, 2001
December 31,
2001 2000
Amounts Available and to be Provided
Amounts Available in Debt Service Funds $5,472,514 $4,736,609
Amounts to be Provided:
From future property tax levies 5,932,579 6,419,909
From future gas tax allocations 1,345,000 1,585,000
From future tax increments 5,505,376 7,169,163
From future special assessments 3,693,694 4,130,139
Total Amounts Available and to be Provided $21,949,163 $24,040,820
General Lona -Term Debt Pavable
General obligation bonds $8,105,000 $8,760,000
Other long term liabilities 4,163 20,820
Tax increment bonds 7,690,000 9,140,000
General obligation special assessment bonds'
with governmental commitment 6,150,000 6,120,000
Total General Long -Term Debt $21,949,163 $24,040,820
103
H
City of Brooklyn Center
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 2001
Total Debt
General Obligation Bonds Tax Increment Bonds Special Assessment Bonds Service Requirements
Year Principal Interest Principal Interest Principal Interest Principal Interest
2002 $680,000 $350,749 $1,540,000 $433,892 $780,000 $249,498 $3,000,000 $1,034,139
2003 705,000 322,356 1,645,000 340,413 870,000 222,596 3,220,000 $885,365
2004 740,000 292,318 1,775,000 237,302 860,000 184,960 3,375,000 $714,580
2005 775,000 260,374 360,000 171,123 860,000 146,455 1,995,000 $577,952
2006 810,000 226,412 360,000 147,362 755,000 109,846 1,925,000 $483,620
2007 540,000 196,640 385,000 122,585 665,000 77,525 1,590,000 $396,750
�. 2008 565,000 171,219 385,000 96,694 495,000 51,165 1,445,000 $319,078
2009 595,000 144,100 400,000 70,200 390,000 31,145 1,385,000 $245,445
2010 625,000 115,274 415,000 42,694 280,000 15,564 1,320,000 $173,532
2011 655,000 84,710 425,000 14,344 130,000 5,866 1,210,000 $104,920
2012 690,000 52,257 65,000 1,430 755,000 $53,687
2013 725,000 17,762 725,000 $17,762
2014
$8,105,000 $2,234,171 $7,690,000 $1,676,609 $6,150,000 $1,096,050 $21,945,000 $5,006,830
104
i
City of Brooklyn Center, Minnesota
�
STATISTICAL SECTION
The statistical section presents comparative statistical data for the past ten years, and other
pertinent information involving taxes, revenues, expenditures, bonded debt, property
valuations, insurance coverage and miscellaneous statistics.
This information is intended to be useful and of interest to investors in City bonds, financial
institutions, and others interested in municipal government financial statistics.
105
TABLE 1
City of Brooklyn Center
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
(Unaudited)
Fiscal General Public Public Community Parks and Economic Non- Admin. Services Total
Year Government Safety Works Services Recreation Development Departmental Reimbursement Expenditures
1992 $2,086,494 $3,938,920 $1,908,437 $114,579 $1,783,811 $187,606 $273,273 ($602,846) $9,690,274
�
1993 1,787,179 3,870,563 1,996,256 41,325 1,999,270 178,703 300,803 (466,574) 9,707,525
1994 1,925,003 4,409,490 1,526,514 41,495 2,055,479 199,982 312,779 (528,684) 9,942,058
1995 2,069,978 4,598,618 1,653,358 41,146 2,226,121 209,576 289,747 (529,047) 10,559,497
1996 1,968,780 5,022,324 1,649,526 78,442 2,282,054 201,600 317,148 (611,534) 10,908,340
1997 1,992,251 5,089,072 1,868,130 79,800 2,186,686 248,779 311,436 (661,058) 11,115,096
1998 2,133,829 5,137,108 1,955,108 73,066 2,075,180 313,792 312,625 (731,737) 11,268,971
1999 2,257,957 5,336,622 1,904,205 83,295 2,132,511 383,927 343,925 (670,390) 11,772,052
2000 2,421,762 5,437,360 2,100,865 95,148 2,216,098 397,507 419,789 (795,737) 12,292,792
2001 2,504,392 5,660,600 2,142,064 106,034 2,205,018 392,805 372,056 (767,504) 12,615,465
Note: Table includes General Fund only.
Source: City Finance Department records
no
0
TABLE 2
City of Brooklyn Center
GENERAL GOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE
Last Ten Fiscal Years
(Unaudited)
General Other
Fiscal Property Licenses Intergovern- Charges for Court Financing Total
Year Taxes & Permits mental Services Fines Misc. Sources Revenue
1992 $4,291,322 $332,186 $3,133,495 $794,876 $148,701 $301,771 $620,000 $9,622,351
1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602
1994 5,703,773 317,620 3,443,247 825,959 113,573 241,570 1 00,000 10,745,742
1995 5,946,363 318,202 3,543,009 822,530 178,263 271,509 100,000 11,179,876
1996 6,120,877 402,000 3,618,075 839,583 186,761 328,750 100,000 11,596,046
1997 6,327,890 485,232 3,811,900 757,640 183,270 458,831 100,000 12,124,763
1998 7,949,744 549,067 3,875,392 771,614 193,688 425,319 13,764,824
1999 8,219,491 763,960 3,911,480 739,054 205,460 194,353 14,033,798
2000 8,745,172 632,549 4,076,169 779,060 180,676 234,740 14,648,366
2001 8,411,513 788,629 4,135,282 688,453 230,408 697,886 14,952,171
Note: Table includes General Fund only.
o Source: City Finance Department records
I
TABLE 3
City of Brooklyn Center
TAX LEVIES AND TAX COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Collections Percentage Collections
of Current of Levy of Prior Total Delinquent
Year's Taxes Collected Year's Taxes Collections Delinquent Taxes as
Year During Fiscal During Fiscal During Fiscal Total as a % of Taxes a % of
Collected Tax Levy * Period Period Period Collections Tax Levy Receivable Tax Levy
1992 $5,072,385 $4,818,439 94.99% $6,898 $4,825,337 95.13% $351,199 6.92%
1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45%
1994 5,857,342 5,634,255 96.19% (176,148) 5,458,107 93.18% 246,311 4.21%
1995 6,501,197 6,367,437 97.94% (75,645) 6,291,792 96.78% 288,717 4.44%
1996 6,495,206 6,358,392 97.89% (11,917) 6,346,475 97.71% 208,862 3.22%
1997 6,746,487 6,626,336 98.22% (57,329) 6,569,007 97.37% 186,089 2.76%
1998 7,687,124 7,643,080 99.43% (51,327) 7,591,752 98.76% 146,907 1.91%
1999 7,896,858 7,824,214 99.08% 30,110 7,854,324 99.46% 165,926 2.10%
2000 8,100,334 8,044,715 99.31% 178,306 8,223,021 101.51% 75,070 0.93%
2001 8,199,094 8,119,854 99.03% (36,320) 8,083,534 98.59% 414,608 5.06%
* Total tax levy is net of Homestead and Agricultural Credit Aid.
o Source: City Finance Department records
Is MM AW SWAN Ma nr Ma � Nwift ow, ar r sw as m mono
TABLE 4
City of Brooklyn Center
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Population (1) 28,558 28,533 28,484 28,463 28,502 28,515 28,535 28,535 29,172 29,172
Real Property
Assessed value: Tax Tax Tax Tax Tax Tax Tax Tax Tax Tax
City: Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity
Residential $9,193,012 $9,077,238 $9,110,096 $9,045,048 $9,485,333 $9,182,859 $9,309,893 $9,976,862 $8,928,738 $8,495,196
Non - residential 16,013,701 14,654,123 13,665,143 13,567,573 12,837,157 11,082,436 10,657,588 11,002,424 14,093,094 9,225,991
Area -wide allocation (1,550,097) (1,533,767) (954,616) (687,295) (586,003) 226,287 537,406 1,504,330 746,438 635,875
23,656,616 22,197,594 21,820,623 21,925,326 21.736,487 20,491,582 20,504,887 22,483,616 23,768,270 18,357,062
Less Tax Increment District 1,374,157 1,184,328 1,165,933 1,230,055 1,495,154 1,665,054 2,054,659 2,533,878 3,296,624 2,450,218
Total assessed value 22,282,459 21,013,266 20,654,690 20,695,271 20,241,333 18,826,528 18,450,228 19,949,738 20,471,646 15,906,844
Estimated Market Value 1,000,829,400 978,404,100 959,668,700 961,811,400 976,115,400 1,010,170,000 1,085,605,600 1,164,801,300 1,311,055,600 1,475,520,200
Personal Property
Assessed value 543,237 549,751 622,500 622,500 573,984 502,668 452,849 437,707 452,680 262,882
Estimated market value 11,349,900 11,951,100 13,532,600 13,532,600 12,477,900 12,566,700 13,006,300 13,053,100 13,593,500 13,312,100
Total Taxable Property
Assessed value (2) _ $22,825,696 $21,563,017 $21,277,190 $21,317,771 $20,815,317 $19,329,196 _ $18,903,047 $20,387,4 $20,924,3 _ $18,032,672
Estimated market value $1,012,179,300 $990,355,200 _ $973,201,300 $ $988,593,300 $1,022,736,700 $1,098,611,900 $1,177,854,400 _ $1,324,649,100 _ $1,488,832,300
Assessed Value as a percent of
Estimated Market Value 2.26% 2.18% 2.19% 2.19% 2.11% 1.89% 1-72% 1.73% 1.58% 1.21%
Per Capita Valuations
Assessed Value $799 $756 $747 $749 $730 $678 $662 $714 $717 $618
Estimated Market Value $35,443 $34,709 $34,167 $34,267 $34,685 $35,867 $38,501 $41,278 $45,408 $51,036
Source: City Assessing Department and Hennepin County records
(1) The Metropolitan Council is the sources of population estimates.
(2) The Minnesota Legislature has repeatedly reduced property tax class rates so that assessed value has fallen even as market values increased.
r+
O
TABLE 5
City of Brooklyn Center
DIRECT AND OVERLAPPING TAX RATES (PER $1,000) AND TAX LEVIES
Last Ten Fiscal Years
(Unaudited)
TAX RATES IN TAX CAPACITY RATES (1 & 2) Hennepin
School Districts (3) County & Total City, School, and County
Year Vo -Tech No. 286 No. 279 No. 281 No. 11 Special No. 286 No. 279 No. 281 No. 11
Collectible City (2) School Earle Brown Osseo Robbinsdale Anoka Districts Earle Brown Osseo Robbinsdale Anoka
1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335
1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143
1994 27.603 0.809 56.614 66.786 64.401 57.161 44.248 128.701 138.873 136.488 128.439
1995 31.090 76.861 70.142 67.197 61.402 45.370 151.763 145.044 142.099 136.304
1996 30.344 58.682 67.155 64.762 64387 44.170 133.196 141.669 139.276 138.901
1997 32.875 56.260 62.666 63.757 55.588 42.174 131.309 137.715 138.806 130.637
1998 35.214 51.567 56.386 65.350 51.824 45.869 132.650 137.469 146.433 132.907
1999 36.269 59.807 54.337 47.716 54.856 50.276 146.352 140.882 134.261 141.401
2000 34.645 44.356 53.284 48.492 51.792 37.679 127.806 136.743 131.942 135.242
2001 35.996 47.139 56.764 46.678 52.224 45.803 128.938 138.583 128.477 134.023
Hennepin
TAX LEVIES IN DOLLARS School Districts County & Total City,
Year Vo -Tech No. 286 No. 279 No. 281 No. 11 Special Schools,
Collectible City (2) School Earle Brown Osseo Robbinsdale Anoka Districts and County
1992 $5,072,385 $123,029 $4,596,776 $3,516,409 $4,444,416 $1,293,144 $8,344,678 $27,390,837
1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332
1994 5,857,342 166,681 4,175,027 3,472,013 4,526,288 1,287,264 9,384,582 28,869,197
1995 6,501,197 5,367,479 3,288,144 4,814,025 1,269,585 8,557,035 29,797,465
1996 6,495,206 4,850,400 3,863,698 4,397,705 1,441,657 9,403,100 30,451,766
1997 6,746,487 4,472,206 3,708,238 3,899,126 1,361,059 8,854,518 29,041,634
1998 7,686,521 4,322,965 4,042,283 3,750,650 1,420,301 8,964,681 30,187,401
1999 7,896,858 4,293,610 3,800,203 3,150,416 1,276,178 9,471,114 29,888,379
2000 8,099,965 4,218,907 3,670,533 3,116,096 1,316,096 9,916,918 30,338,515
2001 8,420,298 4,238,284 4,073,436 3,076,541 1,407,502 9,677,991 30,894,052
Source: City Assessing Department and Hennepin County records
(1) The tax base of property was changed from assessed values to tax capacity values by the Minnesota Legislature in 1989.
C (2) Tax levy includes Brooklyn Center E.D.A. and H.R.A..
(3) Beginning in 1998, a portion of the school levy shown was paid by the state as an education homestead credit. The state -paid portion totaled $2,333,306 in 2001.
+W a arr rr W "W aft M ■r "W AN rK go M rW ors m on No
TABLE 6
City of Brooklyn Center
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Last Ten Fiscal Years
(Unaudited)
Percent
Current Collections Total
Special Percent Collection Collections
Year Assessment of of Prior Total to Current
Collected Billings Amount Billings Years Collections Levy
1992 $558,265 $533,439 95.55% $13,801 $547,240 98.03%
1993 488,163 469,814 96.24% 21,188 491,002 100.58%
1994 466,784 444,670 95.26% 7,592 452,262 96.89%
1995 476,852 458,439 96.14% 5,497 463,936 97.29%
1996 485,019 459,316 94.70% 4,617 463,933 95.65%
1997 498,022 475,080 95.39% 2,470 477,550 95.89%
1998 541,477 524,609 96.88% 24,870 549,479 101.48%
1999 688,691 657,537 95.48% 34,532 692,069 100.49%
2000 900,481 861,888 95.71% 20,620 882,508 98.00%
2001 868,414 787,769 90.71% 20,620 808,389 93.09%
Source: City Finance Department records
i
i
TABLE 7
City of Brooklyn Center
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(Unaudited)
Less: Ratio of
Amounts Net Bonded Net
Tax Gross in Debt Net Debt to Tax Bonded
Fiscal Estimated Capacity Bonded Service Bonded Capacity Debt Per
Year Population Value Debt (1) Fund Debt Value Capita
1992 28,558 $22,825,696 $310,000 $504,146 ($194,146) -0.85% (6.79)
1993 28,533 21,563,017 - - - 0.00% -
1994 28,484 21,277,190 - - - 0.00% -
1995 28,463 21,317,771 - - - 0.00% -
1996 28,502 20,815,317 - - - 0.00% -
1997 28,515 19,329,196 7,900,000 82,056 7,817,944 40.45% 274.17
1998 28,535 18,903,047 7,900,000 616,778 7,283,222 38.53% 255.24
1999 28,535 20,387,445 7,575,000 725,868 6,849,132 33.59% 240.03
2000 29,172 20,924,326 7,175,000 725,930 6,449,070 30.82% 221.07
2001 29,172 18,357,062 6,760,000 831,651 5,928,349 32.29% 203.22
Source: City Finance Department and Hennepin County records
(1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds.
112 ,�
City of Brooklyn Center Table 8
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2001
(Unaudited)
Market Value $1,475,520,200
Debt limit, 2% of market value 29,510,404
Total bonded debt 22,805,000
Deductions (See Note 6):
Bonds:
1. Special Assessment Bonds 6,150,000
2. State i 4
Ad Street Bonds 1,3 5,000
3. Tax Increment Bonds 7,690,000
4. Utility Revenue Bonds 860,000
Total Deductions 16,045,000
�- Total Debt Applicable to Debt Limit 6,760,000
Legal Debt Margin, December 31, 2001 $22,750,404
Source: City Finance and Assessing Department records
113
TABLE 9
City of Brooklyn Center
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2001
(Unaudited)
City's Share
Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $6,760,000 $831,651 $5,928,349 100.0% $5,928,349
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 108,275,000 5,754,594 102,520,406 5.62% 5,761,647
No.11 Anoka 199,799,157 19,977,853 179,821,304 1.03% 1,852,159
No. 279 Osseo 229,970,000 57,735,537 172,234,463 5.57% 9,593,460
No. 286 Earl Brown 2,855,000 737,705 2,117,295 100.00% 2,117,295
Metropolitan Council 176,315,000 35,283,000 141,032,000 0.75% 1,057,740
Hennepin County 279,820,000 1,728,882 278,091,118 1.57% 4,366,031
Hennepin Regional RR Authority 50,000,000 0 50,000,000 1.57% 785,000
Hennepin County Park Reserve District 31,425,000 4,337,666 27,087,334 2.09% 566,125
Total Overlaooing Debt 1,078,459,157 125,555,237 952,903,920 26,099,457
Total Direct and Overlapping Debt $1,085,219,157 $126,386,888 $958,832,269 $32,027,806
Direct Overlapping
Comparative Net Debt Ratios Chargeable to Citv Total Debt Debt
Debt to tax capacity value $18,357,062 174.47% 32.29% 142.18%
Debt to market value $1,488,832,300 2.15% 0.40% 1.75%
Per capita debt, population 29,172 $1,097.90 $203.22 $894.67
Source: City Finance Department, Hennepin County, and I.S.D. #11 records
(1) Includes only general obligation debt which is being repaid through property taxes.
City of Brooklyn Center TABLE 10
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Debt Service
Total Total as a Percent
Debt General Fund of General
Year Principal Interest Service Expenditures Expenditures
1992 $1,880,000 $1,195,204 $3,075,204 $9,690,274 31.73%
1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84%
1994 780,000 1,080,555 1,860,555 9,942,058 18.71%
1995 825,000 1,075,976 1,900,976 10,559,497 18.00%
1996(1) 5,125,000 1,106,661 6,231,661 10,908,340 57.13%
1997 1,135,000 1,017,128 2,152,128 11,739,733 18.33%
1998 1,285,000 1,244,923 2,529,923 12,695,972 19.93%
1999 2,085,000 1,323,609 3,408,609 13,363,091 25.51%
i
2000 3,970,000 1 282 512 5,252,512 13 825 030 37.99%
2001 2,805,000 1,149,623 3,954,623 14,277,342 27.70%
Source: City Finance Department records
() Amounts for 1996 are higher her because of the defeasance of the Tax
Increment Bonds of 1985.
115
TABLE 11
City of Brooklyn Center
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
(Unaudited)
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service
Water Utilitv Fund
1992 $896,857 $316,551 $1,213,408 $762,405 $451,003 $45,000 $1,940 $46,940 9.61 :1
1993 848,134 311,781 1,159,915 659,099 500,816 0 0 0 N/A
1994 1,053,689 284 169 1,337,858 720,973 616,885 0 0 0 N/A
1995 1,048,834 302,136 1,350,970 813,157 537,813 0 0 0 N/A
1996 1,145,040 281,364 1,426,404 759,171 667,233 0 0 0 NIA
1997 1,116,399 267,520 1,383,919 769,112 614,807 0 0 0 N/A
1998 1,179,383 239,788 1,419,171 819,361 599,810 0 0 0 N/A
1999 1,376,952 282,508 1,659,460 835,962 823,498 0 0 0 N/A
2000 1,348,221 149,422 1,497,643 931,052 566,591 0 0 0 N/A
2001 $1,520,950 $228,755 $1,749,705 $958,976 790,729 0 0 0 N/A
Storm Drainage Fund
1992 $494,456 $14,030 $508,486 $207,427 $301,059 $0 $0 $0 N/A
1993 639,837 28,138 667,975 160,044 507,931 0 0 0 N/A
1994 685,011 39,930 724,941 211,425 513,516 0 30,208 30,208 17.00 :1
1995 788,897 72,881 861,778 184,990 676,788 0 90,625 90,625 7.47 :1
1996 822,980 47,363 870,343 204,969 665,374 110,000 86,390 196,390 3.39 :1
1997 856,920 130,651 987,571 198,662 788,909 155,000 79,754 234,754 3.36 :1
1998 940,012 916,860 1,856,872 199,694 1,657,178 165,000 72,227 237,227 6.99 :1
1999 999,867 1,257,928 2,257,795 156,562 2,101,233 170,000 64,193 234,193 8.97 :1
2000 1,074,619 313,068 1,387,687 154,183 1,233,504 180,000 59,144 239,144 5.16 :1
2001 1,129,502 280,740 1,410,242 157,110 1,253,132 190,000 53,166 243,166 5.15 :1
Source: City Finance Department records
(1) Excludes depreciation and interest on bonds.
IM am rn
4w no ift ow "l I" wo an N aw No
TABLE 12
City of Brooklyn Center
PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
(Unaudited)
Building Permits Commercial New Residential
Issued Construction Construction Property Value
Year Number Estimated Cost Value Units Value Commercial Residential Non- Taxable
1992 573 $14,286,465 $5,547,668 14 $948,810 $344,860,700 $667,318,600 $107,747,100
1993 520 11,437,250 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700
1994 607 13,418,453 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200
1995 603 11,948,205 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200
1996 607 16,647,400 12,527,095 18 1,126,000 284,786,600 703,806,700 108,473,400
1997 796 18,274,806 10,905,475 3 225,000 287,163,000 722,917,000 111,226,700
1998 1,482 23,216,525 14,261,800 4 612,900 314,457,700 770,883,400 152,964,200
1999 1,745 44,188,569 10,528,100 7 679,600 333,929,200 832,334,600 155,999,500
2000 1,299 20,450,844 13,254,213 3 311,800 358,293,500 837,022,400 164,002,100
2001 956 63,947,218 10,750,000 4 464,000 367,026,000 970,653,400 165,437,000
Source: City Finance, Assessing and Community Development Department records
TABLE 13
City of Brooklyn Center
PRINCIPAL TAXPAYERS
December 31, 2001
(Unaudited)
Percentage
2001 of Total
Market City Market
Taxpayers Type of Business Valuation Value
Talisman Brookdale, LLC Shopping Center $27,587,600 2.04%
Target Stores Retail 21,040,000 1.55%
BCC Associates, LLC /Reliastar Office 16,410,000 1.21%
TLN LA NEL Apartment 12,648,000 0.93%
Regal Cinemas, Inc. Theater 11,150,000 0.82%
Brookdale Corner, LLC Retail 11,010,000 0.81%
Hennepin County Hotel Association Hotel 10,540,000 0.78%
DJS Holdings, Inc. Industrial 9110000 0.67%
Sears Roebuck and Co. Department Store 8,880,000 0.66%
Wickes Furniture Company Industrial 7,900,000 0.58%
Total Market Value $136,275,600 10.06%
TOTAL CITY MARKET VALUE $1,354,431,300
Source: City Assessing Department records
118 I�
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 2002
(Unaudited)
Policy Period
Tvoe of Coverage and Details From To Liability Limits
I. Statutory Liabilitv to Emolovees
a. Workers' Compensation 04 -01 -02 04 -01 -03 Statutory
(participant in the League of
Minnesota Cities Insurance Trust Self -
Insured Workers' Compensation Program)
It. Liabilitv to the Public
a. Comprehensive general liability includes the following additional coverages:
(a) All employees as additional insureds
entry or eviction, or invasion of right of privacy.
(c) Broad contractual liability
(d) Products liability
(e) Public Officials' liability
(1) Bodily injury 04 -01 -02 04 -01 -03 $1,000,000 combined single limit
(2) Property damage 04 -01 -02 04 -01 -03 $1,000,000 combined single limit
(3) Personal injury 04 -01 -02 04 -01 -03 $1,000,000 combined single limit
b. Automobile liability,
comprehensive 04 -01 -02 04 -01 -03
(1) Bodily injury $1,000,000 occurrence
(2) Property damage $1,000,000 occurrence
(3) Uninsured motorist $1,000,000 occurrence
C. Liquor stores' dram shop 01 -01 -02 01 -01 -03 $1,000,000 each common
cause
d. Golf Course and Central Park 01 -01 -02 01 -01 -03 $1,000,000 each common
liquor liability cause
e. Personal accident, Volunteers 01 -01 -02 01 -01 -03 $100,000 accidental death
$400 /week short-term disability
$1,000 medical
119
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 2002
(Unaudited)
Buildings,
Structures,
Policy Period and Contents
(Replacement
Type of Coverage and Details From To Cost)
III. Insurance on City Property 04 -01 -02 04 -01 -03
a. Public and institutional property,
all risk, blanket $36,142,440; $1,000
deductible replacement value on buildings.
(1) Civic Center $9,779,760
(2) East Fire Station $1,463,325
(3) West Fire Station $3,150,000
(4) Municipal Service Garage $3,085,500
(5) Elevated Water Towers - 3 locations $3,949,440
(6) Park Shelter Buildings - 17 locations $1,517,760
(7) Pump Houses - 10 locations $1,132,200
(8) Lift Stations - 10 locations $1,266,840
(9) Meter Station $18,360
(10) Storage Building $480,420
(11) Outdoor lighting systems - 7 locations $326,400
(12) Humboldt Liquor Store $455,940
(13) Leased Liquor Store $233,000
(14) Leased Liquor Store $240,720
(15) Pedestrian Bridge - 2 locations $1,221,960
(16) Picnic Shelter $136,200
(17) Earle Brown Heritage Center $11,195,220
(18) Centerbrook Golf Course Club House $380,460
(19) Centerbrook Golf Course - Garage $46,920
(20) Lions Park Concession Stand $41,000
Liability Limits
b. Boiler and machinery 04 -01 -02 04 -01 -03 $5,000,000 per accident
C. Automotive physical damage 04 -01 -02 04 -01 -03
(1) Comprehensive ACV - $1,000 deductible
(2) Collision ACV - $1,000 deductible
IV. Criminal Acts
a. Faithful performance blanket position $500,000 per loss
b. Money and securities (broad form) Various
C. Depositor's forgery $100,000
120
I
TABLE 15
City of Brooklyn Center
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
(Unaudited)
School Enrollments (4)
City No. 286
Fiscal Unemployment Mpls- St.Paul No. 11 No. 279 No. 281 Earle
Year Population (1) Rate (2) C.P.I. (3) Anoka Osseo Robbinsdale Brown
1992 28,558 5.1% 3.9% 36,525 20,658 13,905 1,722
1993 28,533 5.1% 2.5% 37,777 20,998 13,519 1,750
1994 28,484 3.4% 3.4% 38,344 21,216 14,072 1,875
1995 28,463 3.1% 2.3% 39,152 21,479 13,595 1,658
1996 28,502 3.0% 3.4% 39,874 21,664 14,099 1,664
1997 28,515 2.3% 1.9% 40,402 21,992 14,010 1,746
1998 28,535 1.9% 2.3% 40,923 22,028 13,966 1,788
1999 28,535 2.4% 3.6% 40,964 22,171 13,800 1,734
2000 29,172 3.0% 4.2% 41,314 22,017 13,706 1,682
2001 29,172 3.9% 3.3% 41,419 22,041 13,754 1,724
(1) Source: Metropolitan Council
(2) Source: Minnesota Department of Economic Security; average rate for the past year
(3) Source: U.S. Bureau of Labor
( Source: Minnesota Department of Children, Families & Learning (Brooklyn Center has parts of these four
Districts within the City)
121
TABLE 16
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
December 31, 2001
(Unaudited)
Date of incorporation February 14, 1911
Date of adoption of City Charter November 8, 1966
Date City Charter effective
December 8 1966
Form of government Council- Manager
Fiscal year begins January 1
Area of City 8 1/2 square miles
Miles of streets:
City 105.856
County 6.49
State 10.79
Miles of sidewalks 34.8
Miles of trails
11.2
Miles of storm sewers 84.02
Number of street lights: Owned by N.S.P 915
Owned by City 172
City employees as of December 31, 2001
Authorized regular full -time 166
Temporary or part -time 250
Total 416
Fire protection:
Number of stations 2
Number of full -time employees 1
Number of volunteer firefighters 34
Police protection:
Number of stations 1
Number of sworn police officers 44
Number of other full -time employees 13
Number of part -time employees 9
122
City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 2001 prior page)
(Unaudited)
Parks and Recreation:
Park property totals 527 acres developed to serve a wide variety of recreational
interests. The areas include playlots, playgrounds, playfields, trails, nature areas and an
arboretum.
Playgrounds 20
Park shelters 10
Picnic shelters 10
Ice skating rinks 13
Hockey rinks 6
Softball diamonds 21
Baseball diamonds 5
Tennis courts 14
Basketball courts 19
Football /soccer fields 3
Municipal water plant:
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Number of connections 8,905
Average daily consumption in gallons 3,638,490
Peak daily consumption in gallons 10,580,000
Plant capacity - gallons per day 17,652,000
Miles of water mains 114
Number of fire hydrants 975
Number of wells 9
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.98
Municipal sewer plant:
Number of connections 8,764
Miles of sanitary sewer 105.51
Daily disposal capacity in gallons 10,938,240
Number of lift stations 10
Residential rate per quarter $50.00
Municipal liquor stores (Off - sale):
Number of leased stores 1
2001 sales $3,552,152
Elections:
Last general election - November 7, 2000
Registered voters 17,843
Votes cast 13,004
Percentage of registered voters voting 72.88%
Last municipal election - November 7, 2000
Registered voters 17,843
Votes cast 13,004
Percentage of registered voters voting 72.88%
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