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Home My WebLink About2001 06-18 CCP Work Session AGENDA CITY COUNCIL WORK SESSION June 18, 2001 6:00 P.M. CONFERENCE ROOM B Joint Meeting with Financial Commission 1. Presentation by Deloitte & Touche of 2000 Audit and discussion 2. Miscellaneous 3. Adjourn Deloitte & Touche LLP ',. 400 One Financial Plaza 120 South Sixth Street Minneapolis, Minnesota 55402 -1844 Tel: (612) 397 4000 Fax: (612) 397 4450 www.us.deloine.com Deloitte & Touche INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED UPON THE AUDIT PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Brooklyn Center, Minnesota We have audited the general purpose financial statements of the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2000, and have issued our report thereon dated May 4, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section 6.65. 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. Compliance: As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards or the provisions of the Minnesota Legal Compliance Audit Guide for Local Government. Internal 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 our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. 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 Deloitte Touche Tohmatsu P material in relation to the 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the City Council, management, federal awarding agencies, state funding agencies, and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. z May 4, 2001 2 Deloitte & Touche LLP 400 One Financial Plaza 4 120 South Sixth Street Minneapolis, Minnesota 55402 -1844 Tel: (612) 397 4000 Fax: (612) 397 4450 www.us.deloitte.com Deloitte & Touche May 4, 2001 To the City Council of the City of Brooklyn Center Brooklyn Center, Minnesota Dear Council Members: We have audited the general purpose financial statements of City of Brooklyn Center, Minnesota (the City) for the year ended December 31, 2000, and have issued our report thereon dated May 4, 2001. 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 financial reporting and disclosure process for which management of the City is responsible. We have prepared the following comments to assist you in fulfilling that obligation. Our Responsibility Under Generally Accepted Auditing Standards: Our responsibility under auditing standards generally accepted in the United States of America (generally accepted auditing standards) has been described to you in our engagement letter dated October 23, 2000. As described in that letter, those standards require, among other things, that we obtain an understanding of the City's internal control sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. We have issued a separate report to you, also dated May 4, 2001, 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 general purpose financial statements. During the year ended December 31, 2000, there were no significant changes in previously adopted accounting policies or their application. Management's Judgments and Accounting Estimates: 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 on knowledge and experience about past and current events and on assumptions about future events. Significant accounting estimates are reflected in the footnotes to the City's 2000 general purpose financial statements. During the year ended December 31, 2000, we are not aware of any significant changes in accounting estimates or in management's judgments relating to such estimates. Deloitte Touche Tohmatsu I To the City Council of the City of Brooklyn Center May 4, 2001 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. A schedule of passed adjustments has been attached to this letter as Appendix A. 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 2000 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. To the City Council of the City of Brooklyn Center May 4, 2001 Page 3 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, CITY OF BROOKLYN CENTER SUMMARY OF PASSED ADJUSTMENTS - GENERAL FUND DECEMBER 31, 2000 Passed As Reported Adjustment As Revised ASSETS AND OTHER DEBITS Cash and cash equivalents $ 1,887,383 $ 1,887,383 Investments 6,811,176 6,811,176 Accounts receivable 147,182 147,182 Due from other governments 105,902 105,902 Advances to other funds 105.074 105,074 $ 9-056-7 $ 9,056-7J1 LIABILITIES, EQUITY, AND OTHER CREDITS LIABILITIES: Deferred revenue $ 277,132 $ 277,132 Accounts payable 313,966 313,966 Accrued salaries and wages 372,090 $ (12,000) <A> 360,090 Accrued vacation and sick pay 641,486 641,486 1,604,674 1,592,674 EQUITY: Fund balance - reserved 105,074 105,074 Fund balance - unreserved: designated 6,097,387 6,097,387 Fund balance - unreserved: undesignated 1,249.582 12,000 <A> 1.261,582 $ 9.056.717 $ 9.056JU REVENUES: Taxes and special assessments $ 8,745,172 $ 8,745, 172 Licenses and permits 632,549 632,249 Intergovernmental 4,076,169 4,076,169 Charges for services 779,060 779,060 Court fines 180,676 180,676 Investment earnings 378,481 378,481 Change in fair value of investments (153,454) (153,454) Miscellaneous 9,713 9,713 Total revenues 14,648,366 14,648,366 EXPENDITURES: General government 2,421,762 (12,000) <A> 2,409,762 Public safety 5,437,360 5,437,360 Public works 2,100,865 2,100,865 Community service 95,148 95,148 Parks and rec 2,216,098 2,216,098 Economic development 397,507 397,507 Nondepartmental 419,789 419,789 Administrative services reimbursement (795.737) (795.737) Total expenditures 12,292,792 12,28092 Excess of revenues over expenditures 2.355.574 2.367.574 OTHER FINANCING USES - Operating transfers out (1.532.238) (1.532,238) EXCESS OF REVENUES OVER EXPENDITURES AND OTHER USES 823,336 835,336 FUND BALANCE JANUARY 1 7,308,707 7,308,707 EQUITY TRANSFERS OUT (680.0001 (680.000) FUND BALANCE DECEMBER 31 $ 7.452,043 $ 7.464.043 4 CITY OF BROOKLYN CENTER SUMMARY OF PASSED ADJUSTMENTS - INTERNAL SERVICE FUND DECEMBER 31, 2000 Passed As Reported Adjustment As Revised ASSETS AND OTHER DEBITS Cash and cash equivalents $ 1,107,681 $ 1,107,681 Investments 4,014,899 4,014,899 Accounts receivable 8,014 8,014 Inventories and supplies 11,273 11,273 Fixed assets, net 2.988 961 $ 96,064 3.085.025 S 8.I30.Rz$ S 8.226.892 LIABILITIES, EQUITY, AND OTHER CREDITS LIABILITIES: Accounts payable $ 16,124 $ 16,124 Accrued salaries and wages 9,750 9,750 Accrued health insurance 1,423,243 1,423,243 Accrued vacation and sick pay 29.515 29.515 1,478,632 1,478,632 EQUITY: Contributed capital 3,004,226 3,004,226 Retained earnings: unreserved 3.647.970 96,064 3,744 034 6.652.196 048.260 $ 8.130.828 $ 8.226.892 OPERATING REVENUES - Sales and user fees $ 1,133,877 $ 1,133,877 OPERATING EXPENSES: Personal services 351,535 351,535 Supplies 228,422 228,422 Other services 62,575 62,575 Insurance 48,716 48,716 Utilities 3,205 3,205 Depreciation 684,448 (54,997) 629.451 Total operating expenses 1,378,901 1,323,904 Operating loss (245,024) (190,027) NONOPERATING REVENUES OR EXPENSES: Investment earnings 305,458 305,458 Change in fair value of investments (124,516) (124,516) Gain on acquisition of fixed assets 41,067 4L067 Total net nonoperating revenue 180,942 222,009 Net (loss) income (64,082) 31,982 Depreciation on contributed assets that reduces contributed capital 170,300 170,300 RETAINED EARNINGS JANUARY 1 3.541.752 3.541.752 RETAINED EARNINGS DECEMBER 31 S 3.647.970 $ 3.744.034 5 <A> Changes in workers' compensation: Accrued salaries and wages $ 12,000 General government expenditures (12,000) Changes in fixed assets: Fixed assets 96,064 Depreciation expense (54,997) Gain on disposal of fixed assets 41,067 6 Deloitte & Touche LLP ,i 400 One Financial Plaza 120 South Sixth Street MLmeapolis, Minnesota 55402 -1844 Tel: (612) 397 4000 Fax: (612) 397 4450 www.us.deloitte.com Deloitte & Touche May 4, 2001 To the City Council of the 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, 2000 (on which we have issued our report dated May 4, 2001), we considered its internal control in order to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements and not to provide assurance on the City's internal control. Such consideration would not necessarily disclose all matters in the City's internal control that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. 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 caused by error or fraud 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. We noted no matters involving the City's internal control and its operation that we consider to be material weaknesses as defined above. We did note other accounting, administrative, and operating matters. These recommendations resulted from our observations made in connection with our audit of the City's general purpose financial statements for the year ended December 31, 2000. Our comments are presented under the following main captions: Exhibit I - Current -Year Comments Exhibit II - Status of Prior -Year Comments 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. We will be pleased to discuss these recommendations with you and, if desired, to assist you in implementing any of the suggestions. Yours truly, Deloitte Touche Tohmatsu I� EXHIBIT I CURRENT -YEAR COMMENTS PG &E Investment: Observation: Based on the recommendation of one of its brokers, the City purchased $2,500,000 face value of PG &E Corporation commercial paper on December 12, 2000 with a maturity date of January 24, 2001. Subsequent to the purchase, the City independently became aware that the issue had been placed on credit watch for possible downgrade by one of the leading credit agencies on September 14, 2000. PG &E defaulted on the paper when it was due on January 24, 2001. The City had adequate reserves to preclude the need for outside borrowing despite the default. In March 2001, a corporate restructuring occurred within PG &E resulting in the City receiving full payment of its investment. In response to the above situation, the City terminated its relationship with the broker who recommended the purchase and reorganized the Finance Department. The City is also in the process of reevaluating its investment policy and procedures, including determining the appropriateness of commercial paper investment limits on the percentage invested per company and expanding its role in performing due diligence on individual investments. Recommendation: We commend the City for the steps that it has taken since the above incident. We recommend that the City continue its efforts to improve controls and monitoring of its investments to include reevaluating its investment policy on a regular basis and ensuring that any new individuals involved in the investment function are familiar with such policy as roles change. Fixed Asset Trade -ins: Observation: During testing of fixed assets, we noted that some items purchased as new equipment also had old equipment that was traded in, thus reducing cash spent. The City was not, however, capitalizing the trade -in value of the old equipment as part of the new asset. Recommendation: Accounting principles generally accepted in the United States of America state that because it is generally difficult to determine separately the economic substance of the purchase price and the trade -in allowance, the cost of the new asset is generally recorded at the amount of the monetary consideration paid plus the unexpired cost of the trade -in surrendered. Although the effect of the error in methodology did not have a material effect on the City's financial statements, we recommend that the City capitalize the trade -in value of old equipment as part the new asset. 2 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. During 2000, the City performed its own detailed analysis of the liability. This analysis included actuarial factors (such as inflation rates) that had not been considered in prior -year examinations. Recommendation: We commend the City on its efforts during 2000. We continue to recommend that an outside actuarial valuation be performed by qualified professionals. As implementation of Statement of Governmental Accounting Standards Board No. 34 (SGAS 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. 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. Capitalization Policy: Observation: The City capitalizes all assets purchased with a value of $1,000 or greater. In March 1997, the Government Finance Officers Association (GFOA) issued a recommended practices bulletin for state and local governments that recommends a minimum threshold for capitalization of $1,000 and a maximum threshold of $5,000. Many leading public sector organizations have significantly higher capitalization thresholds, recognizing that controls present in the purchasing process are an effective, but less costly, alternative to maintaining accountability for fixed assets of less than $5,000 in value versus an extensive listing and periodic inventory of fixed assets. Current federal requirements are that items with a value in excess of $5,000 be capitalized. 3 Recommendation: The City should consider reevaluating its current 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. Financial Reporting Model: On June 30, 1999, the Governmental Accounting Standards Board (GASB) issued SGAS No. 34, Basic Financial Statements and Management's Discussion and Analysis -for State and Local Governments. SGAS No. 34 changes the framework of financial reporting for state and local governments. The primary requirement of SGAS 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 SGAS No. 34 are as follows: • An entitywide statement of activities 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. 4 A The requirements of SGAS No. 34 are effective for the City in the year 2003. We recommend that the City review the provisions of SGAS 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 your organization 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. 5 EXHIBIT II STATUS OF PRIOR -YEAR COMMENTS 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. Fixed Asset System Upgrade: The City upgraded to the NetWare Operating Systems in June 1999. The compatibility of the City's stand -alone fixed asset system and the upgraded NetWare system was not determined prior to the date of installation; therefore, on the date of installation, the fixed asset system failed. The City did not lose any of the information contained on the system, but was unable to process any new information. A compatible NetWare system was found in the fall of 1999 but not installed until April 2000 due to lack of City management information systems (MIS) resources. As a result, all new purchases and sales of fixed assets had to be processed manually from June 1999 to April 2000. Further, the City was not able to use the system to develop depreciation expectations when preparing the 2000 budget. We recommended that the City evaluate increasing resources for the MIS department to handle the stand -alone fixed asset system in addition to the City's other systems or consider reverting back to the LOGIS system to process fixed asset transactions, as was done prior to the purchase of the stand -alone system. The City continued to use the stand -alone Fixed Asset system during 2000 with no further problems. As such, this comment will not be repeated in the current year. Service Auditors' Report: During our testing of controls in the prior year, we noted that a review of LOGIS' internal controls (financials, payroll, and utility billing) by an independent accounting firm in accordance with Statement on Auditing Standards (SAS) No. 70 has not been performed since May 1995. We recommended that a SAS No. 70 review of LOGIS (or the new system that the City plans to implement) be performed at least every two to three years to monitor its controls. Our current -year understanding is that such review is scheduled to take place during 2002. As such, this comment will not be repeated. 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. Financial Reporting Model: See current -year recommendation regarding SGAS No. 34. 6 I� r r - r 3 City of Brooklyn Center A great place to start. A great place to stay. 1 Selected Financial Information December 31, 2000 r �r r r r r 'r CITY OF BROOKLYN CENTER Operating Fund Status December 31 2000 vs. December 31 1999 and December 31 1998 (in thousands) Special Internal General Revenue Enterprise Service Fund Funds Funds Funds Total 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 S 7.452 $ 2.794 $ 2.529 $ 3.663 $ 16.438 i 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 Fund balance at December 31, 1998 $ 7,338 $ 2,952 $ 43,501 $ 6,623 $ 60,414 Less property (40,582) (2,746) (43,328) Liquid fund balance $ 7.338 $ 2.952 $ 2.919 $ 3.877 $ 17.086 1 CITY OF BROOKLYN CENTER Productivity Measures 1998 1999 2000 Population 2 p 28,535 8,535 29,172 Number of Households 11,295 11,295 11,300 Number of Full -time Equivalents (FTE)* 128 132 133 I� Population per FTE 223 216 219 Households per FTE 88 86 85 * general fund only I� j 2 CITY F O BROOKLYN CENTER Enterprise Funds - Operating Income (Loss) (in thousands) 1998 1999 2000 Income (loss) before operating transfers: Water utility $ 344 $ 283 $ 166 Sanitary sewer 350 452 531 Golf course 35 65 78 Municipal liquor store 192 249 145 Recycling and refuse (1) (1) (2) Earle Brown Heritage Center* (457) (449) 101 Storm drainage 1,497 2,090 1,021 Total enterprise funds $ 1,960 $ 2.689 2,040 *Net cash used for operating activities in 1999 was $21,431. 3 CITY OF BROOKLYN CENTER Selected Performance Indicators December 31, 2000 1998 1999 2000 DEBT MEDIANS: City Net Debt Per Capita $ 255 $ 240 $ 221 Ratio of Net City Debt to Estimated Full Value .39% .34% .31% ENTERPRISE MEDIANS - Operating Ratio: Water utility 69.5% 60.1% 69.1% Sewer and storm 63.4 57.1 53.6 i Recycling 102.7 101.2 102.2 Earle Brown Heritage Center 103.9 101.7 84.7 Liquor 71.9 68.5 80.3 Golf course 82.4 76.5 72.7 4 f CITY OF BROOKLYN CENTER Performance Definitions December 31, 2000 t 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 5 i ( CITY OF BROOKLYN CENTER UTILITY ENTERPRISE FUND COMPARISONS As of December 31, 2000 (Millions) Gross Property Cash and Fund and Accumulated I City Investments Equity Equipment Depreciation Deficit ** Brooklyn Park $13.5 $96.5 $109.4 $22.4 $(8.9) Winona 6.8 17.3 32.2 11.4 (4.6) Minnetonka 19.8 96.2 129.3 45.3 (25.5) Burnsville* 2.2 40.1 50.5 24.1 (21.9) Bloomington 40.3 90.8 102.0 49.8 (9.5) Plymouth 12.5 54.8 64.3 23.3 (10.8) Blaine 12.1 66.3 70.8 17.0 (4.9) Brooklyn Center 3.1 37.1 43.0 8.8 (5.7) * Amounts are as of December 31, 1999. ** Calculated as the difference between cash and investments and accumulated depreciation. 6 1 CITY OF BROOKLYN 00 LYN CENT ER General Fund Revenues 1999 2000 Total Revenues - $14,033,798 Total Revenues = $14,648,366 1% 1% 28% 28% ` 11% 1 2 0 ,�0 2001 Total Budgeted Revenues = $14,437,943 3 0 0 i 29% 59% 9 °a 0 Taxes 0 Fines, forfeits, licenses and permits, charges for services, and refunds and reimbursements 0 Intergovernmental 0 Other revenues CITY OF BROOKLYN CENTER General Fund Expenditures 1999 2000 Total Expenditures = $13,363,091 Total Expenditures = $13,825,030 13% 12% 16% 16% 45% 46% 11% 12% ' 14% 15% 2001 Total Budgeted Expenditures = $14,437,943 12% 16% 42% 16% 14% F Public Safety* M Public Works" 0 General Government 0 Parks and Recreation 0 Other * Public Safety includes police /fire building bonds (approximately 5% of total expenditures in each year). ** The 2000 adopted budget classifies government building expenses as Public Works whereas the 2000 CAFR classifies such expenses as General Government (approximately 4% of total expenditures in each year). 8 CITY C OF BROOKLYN CENTER General Fund Revenues /Expenditures Per Household for 2000 $1 ,400 $1,296 $1,223 $1,200 -/ $1 ,000 - / $800 $600 - - -- $400 -� $200 - $0- Revenues Expenditures Note: The average tax paid on the average valued home of $90,100 was $37 per month or $440 annually. i l� CITY Y OF BROOKLYN CE NTER 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 1998 $ 1,506,700 $ 13,363,091 11.3% 1999 1,266,465 13 9.2 2000 1,249,582 14,437,943 (1) 8.7 (1) 2001 budgeted expenditures. ' 10 CITY OF BROOKLYN CENTER Debt Service Schedule (Principal and Interest) $5,500,000 $5,000,000 $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 T N co C0 f- 00 07 O r N co O O O O O O O O O r r r r 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 N ❑ Obligation Bonds ❑Special Assessments Bonds pTax Increment Bonds 11 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 nonrecurrin g 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 ten 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 * The City of Brooklyn Center follows most of these best practices. 12 Worst Practices Having Significant Rating Concern 9 g 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 ten Y ears). 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 %. i 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. The City of Brooklyn Center does not follow an of these practices. Y P 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. • Geographic location. • A 1 Bond rating. Challenges • Net loss from fiscal disparities. • Stability of Brookdale. • Economic viability of Earle Brown Heritage Center. ' • Internal cost of implementing new GASB reporting model. • City Hall and the Community Center do not meet American Disability Act (ADA) ' requirements. • Employee Recruitment and Retention. 14 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the CITY OF BROOKLYN CENTER, MINNESOTA For The Year Ended December 31, 2000 Michael J. McCauley, City Manager Prepared by THE DEPARTMENT OF FINANCE 1 (Member of Government Finance Officers Association of the ni Canada) U ted States and a ) City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 TABLE OF CONTENTS r Exhibit Page Number Number I. INTRODUCTORY SECTION Title Page i Table of Contents ii - vii City Officials 1 Organization Chart 2 City Manager's Letter 3 Letter of Transmittal 4-15 Certificate of Achievement 16 II. FINANCIAL SECTION Independent Auditor ' p s Report 17 A. General Purpose Financial Statements (Combined Statements - Overview): 18 Combined Balance Sheet - All Fund Types and Account Groups 1 19-20 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types 2 21 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget And Actual - General and Special Revenue Funds 3 22 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - Proprietary Fund Types 4 23 Combined Statement of Cash Flows - Proprietary Fund Types 5 24 Notes to Financial Statements 25-50 ii City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 TABLE OF CONTENTS Statement/ Schedule Page Number Number B. Combining, Individual Fund and Account Group Financial Statements and Schedules: General Fund: Comparative Balance She - p et A 1 52 Comparative Statement of Revenues, , Expenditures and Changes in Fund Balance - Budget and Actual A -2 53 ' Schedule of Revenues & Other Financing Sources - Budget and Actual S -1 54-55 Schedule of Expenditures & Other S -2 56-60 ' Financing Uses - Budget and Actual Special Revenue Funds: Combining Balance Sheet B -1 62-63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances B -2 64-65 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Housing and Redevelopment Authority Fund B -3 66 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Economic Development Authority Fund B -4 67 Statement of Revenues, Expenditures and i Changes in Fund Balance - Budget and Actual E. Brown Tax Increment Financing District Fund B -5 68 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Tax Increment District No. 3 Fund B -6 69 iii City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 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 70 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Police Drug Forfeiture Fund B -8 71 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Development Block Grant Fund B -9 72 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual City Initiatives Grant Fund B -10 73 Debt Service Funds: Combining Balance Sheet C -1 75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C -2 76 Capital Projects Funds: Combining Balance Sheet D -1 78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances D -2 79 Project- Length Schedule of Construction Projects - Capital Improvements Fund S -3 80 Project- Length Schedule of Construction Projects - Municipal State Aid for Construction Fund S -4 81 Project- Length Schedule of Construction Projects - Special Assessment Construction Fund S -5 82 Enterprise Funds: Combining Balance Sheet E -1 84-85 iv City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 TABLE OF CONTENTS Statement/ Schedule Page Number Number Combining Statement of Revenues, Expenses and Changes in Retained Earnings E -2 86-87 Combining Statement of Cash Flows E -3 88-89 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Municipal Liquor Fund E -4 90 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Golf Course Fund E -5 91 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Earle Brown Heritage Center Fund E -6 92 Comparative Statement of Revenues, Expenses r and Changes in Retained Earnings - Recycling and Refuse Fund E -7 93 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Water Utility Fund E -8 94 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Sanitary Sewer Fund E -9 95 Comparative Statement of Revenues, Expenses and Changes in Retained Earnings - Storm Drainage Fund E -10 96 Internal Service Funds: Combining Balance Sheet F -1 98 Combining Statement of Revenues, Expenses and Changes in Retained Earnings F -2 99 v 1 City of Brooklyn Center, Minnesota COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 TABLE OF CONTENTS Statement/ Schedule Page Number Number Combining Statement of Cash Flows F -3 100 General Fixed Asset Account Group: Schedule of Changes in General Fixed Assets by Source S -6 102 Schedule of General Fixed Assets by Function and Activity S -7 103 Schedule of Changes in General Fixed Assets by Function and Activity S -8 104 General Long-Term Debt Account g cou t Group. 1 Comparative Statement of General Long -Term Debt G 106 Summary of Debt Service Requirements to Maturity H 107 Ill. STATISTICAL SECTION Table Page Number Number General Governmental Expenditures by Function 1 109 General Governmental Revenues and Other Financing Sources by Source 2 110 Tax Levies and Tax Collections 3 111 t Assessed Value and Estimated Market Value of All Taxable Property 4 112 Direct and Overlapping Tax Rates and Tax Levies 5 113 Special Assessment Billings and Collections 6 114 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita 7 115 vi City of Brooklyn Center, Minnesota ' COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended December 31, 2000 TABLE OF CONTENTS Table Page Number Number Computation of Legal Debt Margin 8 116 , Computation of Direct and Overlapping Debt 9 117 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures 10 118 Schedule of Revenue Bond Coverage 11 119 Property Value and Construction 12 120 Principal Taxpayers 12 p 13 1 Schedule of Insurance Coverage 14 122-123 , Demographic Statistics 15 124 Miscellaneous Statistical Facts 16 125-126 vii City of Brooklyn Center CITY OFFICIALS For the Year Ended December 31, 2000 ELECTED OFFICIALS Term of Office Term Expires Mayor Myrna Kragness Four Years 12/31/2002 Councilmember Debra Hilstrom Four Years 12/31/2002 Councilmember Ed Nelson Four Years 12/31/2002 Councilmember Kay Lasman Four Years 12/31/2000 Councilmember Robert Peppe Four Years 12/31/2000 APPOINTED OFFICIALS City Manager Michael J. McCauley Asst. City Manager /H.R. Director Jane Chambers City Clerk Sharon Knutson City Treasurer Charles Hansen City Attorney Kennedy & Graven City Prosecutor Carson & Clelland Department Heads: Community Activities, Recreation & Services James Glasoe Community Development Brad Hoffman Financial Services Charles Hansen 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 Gerald Olson Public Works Superintendent Dave Peterson 1 City of Brooklyn Center Organization 2000 ELECTORATE City Council Advisory Commissions ADMINISTRATION - Purchasing N -Human Resources City Attorney -- City Manager Communications -Mgmt. Info. Systems - Liquor Stores - Elections Licenses -City Clerk PUBLIC WORKS FIRE DEPARTMENT POLICE DEPARTMENT COMMUNITY ACTIVITIES, RECREATION, AND SERVICES COMMUNITY - Engineering -Fire Prevention - Patrol FINANCIAL SERVICES DEVELOPMENT - Street Maint -Fire Suppression -Investigation -Accounting - Community Programs 9 9 - Recreation Programs - Assessing - Sanitary Sewer - Emergency Preparedness -Crime Prevention -Audit - Community Center - Inspections - Central Garage - Community Programs - Utility Billing -Gov't Bldgs - EDA/HRA -Storm Sewer - Support Services -Risk Management -Golf Course - Zoning -Water Dept - Dispatch - Senior Transportation - Heritage Center -Park Maint - Planning Note: Organizational changes were made in January 2001 and are not reflected in this 2000 organizational chart. "" City of Brooklyn Center A Millennium Community May 4, 2001 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, 2000. Minnesota Statutes and City Charter, I 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 t 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 r 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. Respect submitted, fj Michael J. McCa ■ City Manager 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 I , City of Brooklyn Center ' A Millennium Community May 4, 2001 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, 2000 is hereby submitted. Responsibility for both the r 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, 2000; therefore, no single audit was required for the year ended December 31, 2000. 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 1 (763) 569 -3400 City Hall & TDD Number (763) 569 -3300 FAX (763) 569 -3434 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 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. 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 count for the City is 29,172, a slight increase from the 1990 Census count of 28,887. The number of housing units has remained stable at 11,656 units; there were 11,704 housing units in 1990. There were 18 new housing units constructed in 2000. The estimated market value of property within the City increased 12.46% in 2000 over 1999 and it increased 7.21 % in 1999 over 1998. The City Assessor reports that residential values are continuing to show increases in early 2001 although commercial /industrial values are less robust. 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. Commercial and industrial property comprises 51.5% of the City's taxable net tax capacity. There are four major shopping centers located in the City. The largest commercial property in the City is Brookdale Mall, a 1,000,000 square -foot regional shopping center anchored by Daytons, Sears, J.C. Penney's, and Mervyn's of California. The other three retail shopping centers in the City include Brookdale Square, a 125,000 square -foot strip . center plus an 8- screen theater; Shingle Creek Center, a 157,000 square -foot building anchored by Target; and Brookview Plaza, a 70,000 square -foot center anchored by Best Buy. Other free- standing 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 Regal Cinema Theater, an 85,000 square foot, 20 screen, stadium style theater opened in the summer of 2000. 5 New construction in 2000 includes the completion of the Regal Cinema Theater for $2,390,000; the Cub Foods Supermarket and Brookdale Corner retail stores for $5,320,000; Motel 6 for $3,000,000; Brookpark Dental building shell for $279,200; SuperAmerica car wash for $200,000 and Brooklyn Center Pet Care for $150,000. Other commercial and industrial remodeling projects included Shingle Creek Industrial for $600,000; Medtronic for $70,000; Schmitt Music for $100,000; J.C. Penney's remodeling for $100,000 and Sears remodeling for $900,000. r 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, Inn on the Farm, and Super 8 Motel. In addition, a Motel 6 opened in February 2001. MAJOR EVENTS OF 2000 ' Brooklyn Center is a mature, developed suburb which is working to revitalize itself. With its p g 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 aged infrastructure, that is the 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 purchase of additional property for future commercial development and roadway improvements. Road improvements and demolition of old structures are r underway. +� As part of the planned replacement of the City's infrastructure, the City is in the process of completing several major street and utility improvements. These improvements were funded by general obligation special assessment bonds sold during 2000, 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 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 start over again with the streets that were done first. A side benefit of the street improvements has been a noticeable effort by the residents in those neighborhoods to paint, landscape, and otherwise improve their houses. In November 1997, voters approved the issuance of $7,900,000 of general obligation bonds to be used toward the construction and remodeling of City police and fire facilities. ' Construction of these facilities began in 1998 and was completed in 2000. The project is accounted for in the Capital Improvements Fund. 6 In 1997, Equitable Real Estate sold Brookdale Mall to Talisman Brookdale, LLC. Talisman , Brookdale, LLC announced a large scale remodeling and expansion plan for Brookdale Mall for 1999 and 2000. The work has subsequently been deferred until 2001 and later. Final financing issues have delayed the project's progress. 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 , 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 legally exceed the appropriated amount) 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. 7 ' GENERALFUND The following schedule presents a summary of general fund budgeted revenues for 2001, and actual revenues for the fiscal year ended December 31, 2000 compared to 1999. General Fund Revenues and Other Financing Sources 2000 Increase 2001 2000 1999 (Decrease) 1 Budget Actual Actual from 1999 Taxes $8,558,675 $8,703,772 $8,333,440 $370,332 f Reserve for tax abatements 41,400 (113,949) 155,349 Licenses & permits 551,165 632,549 763,960 (131,411) Intergovernmental revenue 4,149,058 4,076,169 3,911,480 164,689 Charges for services 622,045 779,060 739,054 40,006 Court fines 185,000 180,676 205,460 (24,784) Investment and other Miscellaneous revenues 372,000 234,740 194,353 40,387 Total $14,437,943 $14,648,366 $ 14,033,798 $614,568 Revenues and other financing sources for the General Fund totaled $14,648,366 in 2000, an increase of $614,568 from the previous year. From the table above, it is apparent that the major sources of revenue available for funding of general governmental functions are taxes and intergovernmental revenue, which, when combined, provide 87% of the total ' revenues. The principal sources of intergovernmental aid to the City are homestead and agricultural credit aid of $1,379,768 and local government aid of $2,122,635. 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 decreased the ' reserve in the General Fund by $41,400 in 2000. The balance in the reserve in the General Fund was $208,833 and $250,233 on December 31, 2000 and 1999, respectively. City management estimates that potential tax abatements not covered by the reserve would not materially affect the finances of the City. The decline in license and permit revenue is consistent with many other Minnesota ' suburban communities. The most likely cause for the decrease was relatively high interest rates during the peak construction season in 2000. 8 The following schedule presents a summary of general fund budgeted expenditures for 2001, and actual expenditures for the fiscal year ended December 31, 2000, compared to 1999. General Fund Expenditures and Other Financing Uses , 2000 Increase 2001 2000 1999 (Decrease) ' Budget Actual Actual from 1999 General Government $2,969,080 $2,421,762 $2,257,957 $163,805 ' Public Safety 5,321,012 5,437,360 5,336,622 100,738 Public Works 2,092,352 2,100,865 1,904,205 196,660 Community Service 106,035 95,148 83,295 11,853 Parks and Recreation 2,272,864 2,216,098 2,132,511 83,587 Economic Development 342,000 397,507 383,927 13,580 Non departmental 524,435 419,789 343,925 75,864 ' Admin. Services Reimb. (770,707) (795,737) (670,390) (125,347) Other Financing Uses 1,580,872 1,532,238 1,591,039 (58,801) ' Total $14,437,943 $13,8 25,030 $13,363,091 $461,939 Total expenditures and other financing uses in 2000 increased by a total of $461,939 over 1999, a 3.46% increase. Salaries and benefits account for $336,713 of the increase, primarily due to the 3% wage adjustment given to most employees. Additionally, snow and ice control expenses increased $46,574 over 1999 levels in 2000 due to the harsh winter weather. Police building maintenance expenses increased $63,636 as the new police building was operational for the entire year. The General Fund also transferred $394,197 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 the property tax portion of the projects. The City anticipates this transfer to continue in the future as part of the planned replacement of the City's aged infrastructure. The General Fund had an excess of revenues and other financing sources over expenditures and other financing uses of $823,336 in 2000; the excess in 1999 was $670,707. Collections of current and delinquent property taxes in 2000 were greater than anticipated; additionally, penalty and interest revenues on delinquent taxes were $57,894 , higher than in 1999. Additionally, the reserve for tax abatements was decreased by $41,400 in 2000 compared to an increase in the reserve of $113,949 in 1999. 9 GENERAL FUND BALANCE As of December 31, 2000, the fund balance of the General Fund totaled $7,452,043. This ending fund balance is the equivalent of approximately six months of expenditures for the 2001 budget. Property taxes and intergovernmental revenue represent 88% of the budgeted general fund revenue for 2001. 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 establish 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, ' 1999 revealed a surplus of $1,372,688 above the minimum requirements which is available for other uses. This allowed the transfer of up to $686,344 to other funds. ' The City Council passed a resolution transferring $415,000 of surplus funds from the General Fund to the Capital Improvements Fund for future government building and park improvements and $265,000 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, 2000. 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 of 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 ENTERPRISE OPERATIONS The City's enterprise operations are composed of seven separate and distinctive 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 one location. The , q p g y been consolidated into remaining store operates in a leased facility adjacent to the new Cub Foods Supermarket. The City had operated three stores in the past. The past year was a transition year for the liquor operation; one City -owned location was sold to a local school district, while a formerly leased store was vacated and moved to the new location. The operating results for 2000 reflect the transition. 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. The interfund loan, used to build the golf course, is being repaid over a planned schedule covering twenty years. The business is increasingly competitive; many new courses are ' being added within the immediate area. The Earle Brown Heritage Center is a pioneer farmstead which has been historically ' preserved and restored as a modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts seating 1,000 people in either banquet or theater ' style. A new caterer began providing food services in the spring of 1999 and a major addition was completed in 2000. The City's policy forthis 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 2000; the new catering company and the addition of meeting space helped the facility to post its best financial performance to date. The first few months of 2001 have continued to be strong. The dwindling supply of landfill space for the disposal of garbage has become a major concern in Minnesota. State and county mandated goals for the diversion of garbage to recycling programs took effect in 1989. In response, the City opened a Recycling and Refuse Fund as an enterprise fund. Thus far, the City is only operating a recycling program. Expansion into garbage collection will take place when there is clear advantage to be achieved by it. Goals for the recycling program are being met. The Water and Sanitary Sewer utilities are largely developed and already reach all parts of ' the City. Rates for both water and sanitary sewer are reviewed annually and are increased as needed to cover inflation and the need for new capital outlays. Three - fourths of the sewer operating expenses are fees paid to the Metropolitan Council Environmental Services for sewage treatment. Planned rate increases 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 streets. 11 , During the 1980's, the State of Minnesota passed legislation that requires cities to take greater responsibility for controlling storm water runoff. In response to this, the City ' created a Storm Drainage Utility Fund. Fees to property owners are based on the amount of water runoff from the properties; the fees vary according to the size and absorption characteristics of the respective properties. Construction of storm sewer lines is being made concurrent with the City's 25 -year program for reconstructing streets. ' INTERNAL SERVICE FUNDS ' The Central Garage Fund was established to own and maintain all operating equipment of the City valued over $10,000. At present, the fund maintains over 150 pieces of rolling and non rolling stock equipment with a net book value of $2,988,961. Equipment maintenance, repair, fuel, and replacement costs are provided from rental rates which the Central Garage Fund charges City operating departments for the use of the equipment. The Public Employees Retirement Fund was established to provide certain health care benefits for qualifying City employees who retire before age 65. The fund had assets of $1,423,349 at year -end. The liability of the City is analyzed on an annual basis. DEBT ADMINISTRATION At December 31, 2000, the City had thirteen debt issues outstanding. These issues include $8,760,000 of general obligation bonds, $6,120,000 of special assessment debt with government commitment, $1,050,000 of general obligation revenue bonds and $9,140,000 of general obligation tax increment bonds. The City maintained its A -1 rating from Moody's Investors Service. The City issued $735,000 of bonds supported solely by special assessments during 2000. ' The special assessment bond issue provided financing for various improvement projects in the City. CASH MANAGEMENT The Finance Department keeps abreast of current trends and procedures for cash management and forecasting so as to ensure efficient and profitable use of the City's cash resources. Cash is invested only in investments authorized by Minnesota Statutes Chapter ' 118A. 12 Interest earned during 2000 amounted to $1,123,714 compared to $963,842 during 1999. , Changes in the fair value of investments reduced 2000 earnings by $708,285; they decreased 1999 earnings by $839,273. 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. , The main component of the decrease in the fair value of investments in 2000 was a commercial paper investment in PG &E Corporation; its market value was estimated to be 50% of its maturity value as of December 31, 2000. This valuation was derived by the City based on information gleaned from multiple traders in early 2001. The City could not find any broker willing to place a definitive value on the issue as of December 31, 2000. The decrease in fair value of this investment was $1,250,000; the increase in fair value of the rest of the portfolio was $541,707. The City purchased $2,500,000 face value of PG &E Corporation commercial paper on December 12, 2000 with a maturity date of January 24, 2001 based on the recommendation of one of its brokers. According to the broker, the commercial paper became impaired later the same day; no ' bids were available for selling the issue. Subsequent to December 12, 2000, the City independently discovered that the issue had been placed on credit watch for possible downgrade by one of the leading credit agencies on September 14, 2000. PG &E i Corporation defaulted on the paper when it was due on January 24, 2001. The City had adequate reserves to preclude the need for outside borrowing despite the default. In March 2001, a corporate restructuring occurred within PG &E Corporation resulting in the City receiving full payment of its investment, plus interest from the original maturity date through the actual payment date. The $1,250,000 decrease in fair value recorded in the December 31, 2000 financial statements will be reversed in 2001. In light of this situation, the City has scrutinized its investment function. The PG &E purchase raises two separate issues which warranted attention: 1) the appropriate maximum investment in any single investment and 2) the propriety of individual investments. To address the first issue, the City and its Financial Commission will ' examine the City's current investment policy and determine if a "cap" should be placed on the amounts invested in individual securities. In the past, the City has relied on the training and experience of its Treasurer and reputation of its brokers; sound investment ' practice dictates diversification within a portfolio. It was not deemed necessary to formally recognize this fact in the City's investment policy. Due to a departmental reorganization within the City near year -end, different individuals are involved in the ' investment function. These individuals are cognizant of the diversification necessary in a portfolio; no large, individual issue investments will occur in the future. To address the second issue, the City and its Financial Commission will determine the , appropriateness of commercial paper in its portfolio. Since the PG &E situation, the City has not invested in any individual commercial paper issues. Additionally, the City is examining its role in performing due diligence on individual investments. Relying on local, large experienced brokers to provide this oversight, as the City has done in the past, may not be sufficient to protect the City's interests. , 13 , r The City adopted a written investment policy in 1990 and adopted an updated policy in 1997. The policy's objectives are to minimize credit and market risk, provide needed liquidity, and maintain a competitive yield on the portfolio. As referenced earlier, the policy will be reviewed in 2001. ' 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 r proportion to their relative cash book balances. The City has not purchased any collateralized mortgage obligations, derivatives, or strip investments. The practice is to hold investments to maturity. 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, 2000, 41% matures within 1 year, ' another 22% in the second year, 22% in the third year, 3% in the fourth year, 3% in the fifth year, and the last 9% in the sixth through the tenth years. r RISK MANAGEMENT r The City insures all significant risk. A schedule of such insurance is included in the Statistical Section. r INDEPENDENT AUDIT r The City Charter and State Statutes require the Council to provide for an audit of the financial transactions of the City. Deloitte & Touche LLP has been retained for that r purpose and their unqualified opinion has been included in this report. CERTIFICATE OF ACHIEVEMENT r 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, 1999. 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 22 certificates, including 17 consecutive certificates for the years 1983 through 1999. r r 14 In order to be awarded a Certificate of Achievement for Excellence in Financial Reporting, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. ' Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement i v v ' e t s valid for a period of one year only. We believe current o 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 members of the City Council, the Mayor, 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, 1 Dou as Sell Director of Fiscal & Support Services 9 Robert Sundberg Assistant Director of Finance ' 15 1 . C ert i f i cate of Ach ievement 1 Ex c e ll ence �r in Fin 1 Rep ort i n g i Presented to City o Bro Center, 1 Minnesota For its Comprehensive Annual 1 ci l Rep ort ort a p for the Fiscal Year Ended December 31, 1999 ' 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 1 reports (CAFRs) achieve the highest standards in government accounting 1 and financial reporting. ��E DFF� -' Of T E UNITED STATES u, # AND v ' CANADA = resident 2 CORPORATION ' a CNICp6a ' 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.us.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, as of December 31, 2000 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 of Brooklyn Center, Minnesota. 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 b management, as well as evaluating the overall financial statement g Y g g 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 of Brooklyn Center, Minnesota at December 31, 2000, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds 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 of Brooklyn Center, Minnesota. These financial statements and schedules are also the responsibility of the management of the City of Brooklyn Center, Minnesota. 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 contained in Tables 1 through 16 are presented for the purpose of additional analysis and are not a required part of the general purpose financial statements of the City of Brooklyn Center, Minnesota. 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 4, 2001 on our consideration of the City of Brooklyn Center'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. 7 4-� ' May 4, 2001 Deloitte ' Touche Tohmatsu I 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. 18 City of Brooklyn Center All Fund Types and Account Groups COMBINED BALANCE SHEET December 31, 2000 Governmental Fund Types Special Debt Capital General Revenue Service Projects ASSETS AND OTHER DEBITS Assets: Cash and cash equivalents (Notes 1F, 2) $1,887,383 $764,137 $3,480,432 $1,492,707 Investments (Notes 1F, 2) 6,811,176 2,769,692 1,259,561 5,410,467 Receivables: Accounts 78,883 12,334 1,696 Delinquent taxes (Note 1J) 59,111 3,090 Special assessments 9,188 3,575,606 269,941 Due from other funds (Note 9) 139,293 Due from other governments 105,902 447,322 892,906 Inventories and supplies (Note 1G) Prepaid expenses Advances to other funds (Note 9) 105,074 1,593,069 Fixed assets (net of accum depr. where applicable) (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 $9,056,717 $4,135,868 $8,315,599 $9,660,786 LIABILITIES. EQUITY AND OTHER CREDITS Liabilities: Accounts payable $313,966 $483,213 $3,384 $373,191 Contracts payable 17,801 Due to other funds (Note 9) 139,293 Accrued salaries and wages 372,090 Accrued vacation & sick pay (Note 1H) 641,486 17,704 Accrued health insurance Accrued interest payable Advances from other funds (Note 9) 698,143 Deferred revenue (Note 1J) 277,132 3,090 3,575,606 368,432 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 1,604,674 1,341,443 3,578,990 759,424 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 105,074 977,619 4,736,609 1,593,069 Unreserved: Designated 6,097,387 Undesignated 1,249,582 1,816,806 7,308,293 Total Equity and Other Credits 7,452,043 2,794,425 4,736,609 8,901,362 Total Liabilities, Equity and Other Credits $9,056,717 $4,135,868 $8,315,599 $9,660,786 (See notes to financial statements) EXHIBIT 1 Totals Proprietary Fund Types Account Groups (Memorandum Only) General General Internal Fixed Long -Term December 31, Enterprise Service Assets Debt 2000 1999 $824,809 $1,107,681 $9,557,149 $9,325,126 2,970,031 4,014,899 23,235,826 27,724,030 1,365,252 8,014 1,466,179 1,497,634 62,201 165,926 193,225 4,047,960 4,130,535 84,636 223,929 562,236 163,991 1,610,121 521,140 397,281 11,273 408,554 453,914 122,818 122,818 125,143 1,698,143 1,774,486 46,893,456 2,988,961 $25,324,975 75,207,392 70,964,202 $4,736,609 4,736,609 5,666,641 19,304,211 19,304,211 21,625,834 $53,015,499 $8,130,828 $25,324,975 $24,040,820 $141,681,092 $144,536,847 $1,155,592 $16,124 $2,345,470 $2,174,838 63,302 81,103 240,491 84,636 223,929 562,236 59,505 9,750 441,345 450,020 101,462 29,515 790,167 765,075 1,423,243 1,423,243 1,369,891 22,795 22,795 26,467 1,000,000 1,698,143 1,774,486 4,224,260 4,740,692 $17,900,000 17,900,000 21,335,000 56,302 20,820 77,122 206,381 6,120,000 6,120,000 5,920,000 1,050,000 1,050,000 1,230,000 3,593,594 1,478,632 24,040,820 36,397,577 40,795,577 22,618,597 3,004,226 25,622,823 26,108,306 $25,324,975 25,324,975 23,361,414 433,176 433,176 409,364 26,370,132 3,647,970 30,018,102 27,631,666 7,412,371 8,418,746 6,097,387 5,937,168 10,374,681 11,874,606 49,421,905 6,652,196 25,324,975 105,283,515 103,741,270 $53,015,499 $8,130,828 $25,324,975 $24,040,820 $141,681,092 $144,536,847 20 City of Brooklyn Center EXHIBIT 2 All Governmental Fund Types COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2000 Totals j Special Debt Capital (Memorandum Only) Revenues General Revenue Service Projects 2000 1999 Taxes and special assessments $8,745,172 $3,556,588 $994,839 $289,596 $13,586,195 $12,361,125 Licenses and permits 632,549 632,549 763,960 Intergovernmental 4,076,169 2,239,000 291,245 1,293,108 7,899,522 8,602,166 Charges for services 779,060 779,060 739,054 Court fines 180,676 180,676 205,460 Investment earnings 378,481 252,888 141,277 516,234 1,288,880 1,187,494 Change in fair value of investments (153,454) (113,679) (49,494) (174,024) (490,651) (577,615) Miscellaneous 9,713 105,299 10,000 125,012 168,050 Total Revenues 14,648,366 6,040,096 1,377,867 1,934,914 24,001,243 23,449,694 Expenditures Current: General government 2,421,762 7,434 2,429,196 2,260,415 Public safety 5,437,360 15,783 5,453,143 5,354,413 Public works 2,100,865 2,100,865 1,904,205 Community services 95,148 95,148 83,295 Parks and recreation 2,216,098 128,670 2,344,768 2,233,465 Economic development 397,507 2,365,521 2,763,028 2,664,904 Non departmental 419,789 419,789 343,925 Administrative Services Reimbursement (795,737) (795,737) (670,390) Capital outlay 1,703,932 5,571,743 7,275,675 13,838,702 Debt service: Principal retirement 3,970,000 3,970,000 2,085,000 Interest and fiscal charges 1,295,938 1,295,938 1,387,544 Total Expenditures 12,292,792 4,221,340 5,265,938 5,571,743 27,351,813 31,485,478 Excess or Deficiency( -) of Revenues Over Expenditures 2,355,574 1,818,756 (3,888,071) (3,636,829) (3,350,570) (8,035,784) Other Financing Uses( -) or S Proceeds from sale of bonds 735,000 735,000 1,585,000 Sale of fixed assets 194,491 194,491 2,411,987 Operating transfers in 401,884 4,508,039 569,197 5,479,120 3,655,433 Operating transfers out (1,532,238) (2,321,884) (1,550,000) (5,404,122) (3,704,790) Total Other Financing Uses( -) or Sources (1,532,238) (1,725,509) 2,958,039 1,304,197 1,004,489 3,947,630 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 823,336 93,247 (930,032) (2,332,632) (2,346,081) (4,088,154) Fund Balances January 1 7,308,707 2,701,178 5,666,641 10,553,994 26,230,520 30,318,674 Equity Transfers (Out) In (680,000) 680,000 Fund Balances December 31 $7,452,043 $2,794,425 $4,736,609 $8,901,362 $23,884,439 $26,230,520 (See notes to financial statements 21 I City of Brooklyn Center EXHIBIT 3 General and Special Revenue Funds COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For the Year Ended December 31, 2000 General Fund Special Revenue Funds Actual Over Actual Over Under( -) Under( -) Revenues Budget Actual Budget Budget Actual Budget Taxes and special assessments $8,134,653 $8,745,172 $610,519 $3,582,012 $3,556,588 ($25,424) Licenses and permits 512,050 632,549 120,499 Intergovernmental 4,067,577 4,076,169 8,592 2,248,417 2,239,000 (9,417) Charges for services 779,750 779,060 (690) Court fines 200,000 180,676 (19,324) Investment earnings 324,000 378,481 54,481 70,000 252,888 182,888 Change in fair value of investments (153,454) (153,454) (113,679) (113,679) Miscellaneous 12,000 9,713 (2,287) 87,000 105,299 18,299 Total Revenues 14,030,030 14,648,366 618,336 5,987,429 6,040,096 52,667 Expenditures General government 2,402,331 2,421,762 19,431 7,434 7,434 Public safety 5,655,628 5,437,360 (218,268) 100,000 83,224 (16,776) Public works 2,047,036 2,100,865 53,829 Community services 95,030 95,148 118 Parks and recreation 2,314,041 2,216,098 (97,943) 150,000 128,670 (21,330) Economic development 308,750 397,507 88,757 4,153,241 4,002,012 (151,229) Non - departmental 478,843 419,789 (59,054) Admin. Services Reimbursement (749,233) (795,737) (46,504) Total Expenditures 12,552,426 12,292,792 (259,634) 4,403,241 4,221,340 (181,901) Excess or Deficiency( -) of Revenues Over Expenditures 1,477,604 2,355,574 877,970 1,584,188 1,818,756 234,568 Other Financing Uses( -1 or Sources Sale of fixed assets 194,491 194,491 Operating transfers in 405,474 401,884 (3,590) Operating transfers out (1,477,604) (1,532,238) (54,634) (2,325,474) (2,321,884) 3,590 Total Other Financing Uses( -) or Sources (1,477,604) (1,532,238) (54,634) (1,920,000) (1,725,509) 194,491 Excess or Deficiency( -) of Revenues and Other Sources Over Expenditures and Other Uses 823,336 823,336 (335,812) 93,247 429,059 Fund Balances January 1 7,308,707 7,308,707 2,701,178 2,701,178 Equity Transfer Out (680,000) (680,000) r Fund Balances December 31 $7,308,707 $7,452,043 $143,336 $2,365,366 $2,794,425 $429,059 (See notes to financial statements) 22 City of Brooklyn Center EXHIBIT 4 Proprietary Fund Types COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 Internal Totals Enterprise Service (Memorandum Only) Ooeratina Revenues Funds Funds 2000 1999 Sales and user fees $12,968,408 $1,133,877 $14,102,285 $13,393,181 Cost of sales 3,304,423 3,304,423 3,285,487 Net Operating Revenues 9,663,985 1,133,877 10,797,862 10,107,694 Ooeratina Exoenses Personal services 3,054,611 351,535 3,406,146 3,368,842 Supplies 422,065 228,422 650,487 554,494 Other services 2,785,912 62,575 2,848,487 2,918,182 Insurance 65,212 48,716 113,928 87,652 Utilities 333,052 3,205 336,257 325,621 Rent 193,774 193,774 236,172 Depreciation 1,200,104 684,448 1,884,552 1,571,707 Total Operating Expenses 8,054,730 1,378,901 9,433,631 9,062,670 Operating Income (Loss) 1,609,255 (245,024) 1,364,231 1,045,024 Nonorwatina Revenues or Exoenses ! -1 Investment earnings 275,169 305,458 580,627 578,287 Change in fair value of investments (93,118) (124,516) (217,634) (261,658) Special assessments 353,157 353,157 291,475 Intergovernmental 1,092,809 Other revenue 10,275 10,275 7,454 Interest and fiscal agent fees (83,507) (83,507) (90,904) Loss on sale of fixed assets (30,989) (30,989) Total Net Nonoperating Revenue 430,987 180,942 611,929 1,617,463 Income (Loss) Before Operating Transfers 2,040,242 (64,082) 1,976,160 2,662,487 Operating Transfers In 124,357 Operating Transfers Out (75,000) (75,000) (75,000) Net Income (Loss) 1,965,242 (64,082) 1,901,160 2,711,844 Depreciation on contributed assets that reduces contributed capital 338,788 170,300 509,088 464,247 Retained Earnings January 1 24,499,278 3,541,752 28,041,030 24,864,939 Retained Earnings December 31 $26,803,308 $3,647,970 $30,451,278 $28,041,030 (See notes to financial statements) 23 City of Brooklyn Center EXHIBIT 5 Proprietary Fund Types COMBINED STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 Internal Totals Enterprise Service (Memorandum Only) Cash flows from operatino_ activities: Funds Funds 2000 1999 Operating income (loss) $1,609,255 ($245,024) $1,364,231 $1,045,024 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 1,200,104 684,448 1,884,552 1,571,707 Changes in assets and liabilities: Receivables (227,108) 13,481 627 (213, ) (97,053) Inventories 44,061 1,299 45,360 (91,656) Prepaid expenses 2,325 2,325 936 Payables 124,037 (13,062) 110,975 345,526 Accrued expenses 22,699 1,762 24,461 (38,745) Accrued interest payable (3,675) (3,675) (3,364) Accrued health insurance liability 53,352 53,352 140,558 Other nonoperating income 363,432 363,432 1,391,738 Net cash provided by operating activities 3,135,130 496,256 3,631,386 4,264,671 Cash flows from noncapital financing activities: Proceeds from borrowings due to other funds 84,636 84,636 160,000 Principal payments on long -term debt (56,302) (56,302) (56,302) Principal payments on advance from other funds (621,343) (621,343) (79,969) Interest paid on advance from other funds (515) (515) (2,593) Interest paid on due to other funds (23,848) (23,848) (23,233) Operating transfers in 124,357 Operating transfers out (75,000) (75,000) (75,000) i Net cash (used for) provided by noncapital financing activities (692,372) (692,372) 47,260 Cash flows from caoital and related financing_ activities: Capital contributions 23,605 23,605 1,234,880 Acquisition and construction of capital assets (3,769,812) (646,600) (4,416,412) (5,767,036) Proceeds of sale of fixed assets 221,241 221,241 Principal paid on revenue bonds (180,000) (180,000) (170,000) Interest paid on revenue bonds (59,144) (59,144) (65,078) Net cash used for capital and related financing activities (3,764,110) (646,600) (4,410,710) (4,767,234) Cash flows from investina activities:, Investments purchased (2,142,741) (2,896,564) (5,039,305) (4,931,476) Investments sold or matured 3,102,790 3,103,773 6,206,563 4,379,866 Investment earnings 275,169 305,458 580,627 578,287 Net cash provided by investing activities 1,235,218 512,667 1,747,885 26,677 Net (decrease) increase in cash and cash equivalents (86,134) 362,323 276,189 (428,626) Cash and cash equivalents at beginning of year 910,943 745,358 1,656,301 2,084,927 Cash and cash equivalents at end of year $824,809 $1,107,681 $1,932,490 $1,656,301 Non cash items: Change in fair value of investments ($93,118) ($124,516) ($217,634) ($261,658) (See notes to financial statements) 24 City of Brooklyn Center NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2000 Note 1: Summary of Siqnificant Accountinq Policies The City of Brooklyn Center, Minnesota (the City) was formed and operates pursuant to applicable Minnesota laws and statutes. The governing body consists M of a mayor and four City Council members elected at large to serve four -year staggered terms. A. Reportinq 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. Economic Development Authority (EDA) and Housing and Redevelopment Authority (HRA) in and for the City of Brooklyn Center: The governing board for each Authority is the City Council. The Council reviews and approves EDA and HRA tax levies, and the City provides major community development financing for EDA and HRA activities. Debts issued for EDA and HRA activities are City general obligations. Although the EDA and HRA are legally separate from the City, they are reported as 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 as several agreements with other entities y g t ties that provide reduced costs, better service, and additional benefits to the participants. The programs in which the City participates are listed below; amounts recorded within the current year's financial statements are disclosed. 25 Note 1: Summary of Siqnificant Accountinq Policies (cont'd) ' Local Government Information Systems Association ( LOGIS): This consortium of approximately 24 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 2000 financial statements of the City was $356,969 for services provided, which is allocated to the various funds based on applications. Complete financial statements may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. LOGIS Insurance Group: This group provides cooperative purchasing of health and life insurance benefits for approximately 45 governmental entities. The total 2000 employee insurance benefits expense, including health and life insurance, recorded within the financial statements was $629,635. 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): 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 appointed 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. � � 26 __ Note 1: Summary of Significant Accountinq Policies (cont'd) B. Fund Accountinq 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 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. 27 Note 1: Summary of Siqnificant Accounting Policies (cont'd) C. Fixed Assets and Lonq -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, rather than in the governmental funds. Public domain general fixed assets consisting of certain improvements other than buildings, including roads, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have been excluded from general fixed assets, as such items are immovable and of value only to the City. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if historical cost is 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 100 Y ears Buildings and Structures 20 -40 years j Water Wells and Storage Tanks 15 -50 years Sewer Lift Stations 15 -40 years Machinery and Equipment 5 -20 years Furniture and Fixtures 5 -20 years Public Utility assets financed by special assessments are recorded as contributions. Long -term liabilities expected to be financed from governmental funds are accounted for in the General Long -Term Debt Account Group, not in the governmental funds. 28 Note 1: Summary of Siqnificant Accountinq 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. are Expenditures generally recognized under the modified accrual basis of p g Y reco 9 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 Accountinq 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 in November. 29 Note 1: Summary of Siqnificant Accountinq Policies (cont'd) 3. Public hearings are conducted to obtain taxpayer comments. 4. The budgets are legally enacted through passage of a resolution by the City Council in the month of December. 5. The City Council must authorize any transfer of budgeted amounts between departments within 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. 8. Formal budgetary integration is employed as a management control device during the year for all governmental funds with the exception of Debt Service Funds and Capital 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 Debt Service Funds and the project - length Capital Projects Funds. I� 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 ado ted or as amended b the City g P Y Y 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 commercial paper and certificates of deposit with 30 Note 1: Summary of Siqnificant Accountinq Policies (cont'd) a maturity of one year or less when p urchased 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. I. Fund Equitv 1 Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers, or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balance represents tentative plans for future use of financial resources. 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 a lien on January 1 and are recorded as receivables by the City at that date. Revenues are accrued and recognized in the year collectible, net of delinquencies. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to cities and other taxing districts two times a year, in July and December. 31 t Note 1: Summary of Siqnificant Accounting 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, 2000, the City has recorded $208,833 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. L. New Accountinq Pronouncement 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. 32 Note 2: Cash and Investments A. Deposits In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council. All such depositories are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. , Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At December 31, 2000 the carrying amount of the City's demand deposits was $(1,132,202) and the bank balance was $392,502. Of the bank balance, $100,000 was covered by federal depository insurance (risk category A) and the remainder was covered by collateral held in the pledging bank's trust department in the City's name (risk category B). Risk Cateqory A Insured or collateralized by securities held by the City or its agent in the City's name. B Collateralized with securities held by the pledging institution's trust department in the City's name. C Uncollateralized or collateralized with securities held by the pledging institution's trust department or agent, but not in the City's name. 33 Note 2: Cash and Investments (cont'd) 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 p a s banks eligible for purchase by the Federal Reserve System. e Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. g Future contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. i The City has not purchased any collateralized mortgage obligations, derivatives, or strip investments. Investments are typically held to maturity. Of the City's portfolio as of December 31, 2000, 41 % matures within 1 year, another 22% in the second year, 22% in the third year, 3% in the fourth year, 3% in the fifth year, and the last 9% in the sixth through the tenth years. 34 Note 2: Cash and Investments (cont'dl 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. In accordance with GASB Statement No. 3, investments in a money market fund are not categorized as to custodial credit risk. Balances at December 31, 2000: , Carrying Credit Risk Category Amount/ Securities Type 1 2 3 Fair Value Investments - Categorized: U.S. Government $8,723,522 $8,723,522 Federal agencies 12,775,259 12,775,259 Commercial paper 4,204,643 4,204,643 . $25,703,424 $ - $ - 25,703,424 Investments - Not categorized: Deposits 8,208,059 Total Investments 33,911,483 Cash in Bank and Change Funds (1,118,508 Total Cash, Cash Equivalents, and Investments $32,792,975 35 Note 2: Cash and Investments (cont'd) SUMMARY OF CASH AND INVESTMENTS Balances at December 31, 2000 Investments: Carrying Amount/ Investment Tyoe Interest Rate Maturity Fair Value* U.S. Treasury notes 4.25-6.57% 2001 -2003 $8,723,522 Federal Home Loan Mortgage bonds 5.125-6.5% 2001 -2008 8,033,598 Federal National Mortgage Association bonds 5.75-7.63% 2001 -2009 4,741,661 Commercial paper * Various 2001 4,204,643 Total Investments $25,703,424 Deposits: Minnesota Municipal Money Market Fund, Insight Investment Management, Minneapolis, Minnesota 3,443,185 Dreyfus General Money Market Fund, Marquette Trust, Minneapolis, Minnesota 1,569,071 Money Market Fund, Wells Fargo Bank, Minnesota 425,527 Money Market Fund, US Bancorp, St. Paul, Minnesota 4,879 Certificates of Deposit 2,765,397 Total Deposits 8,208,059 Cash: Marquette Bank Brookdale, Brooklyn Center, Minnesota (1,132,202) Change funds 13,694 1 Total Cash (1,118,508) Total Cash, Cash Equivalents, and Investments $32,792,975 From Exhibit 1, COMBINED BALANCE SHEET Cash and cash equivalents $9,557,149 Investments 23,235,826 $32,792,975 " The fair value for commercial paper reflects a 50% writedown ($1,250,000) of an issue (PGE Corp.) purchased by the City on December 12, 2001 and held by the City on December 31, 2000. This reflects the City's best estimate of its value on that date. The issue subsequently defaulted on its maturity date of January 24, 2001 and remained in default through March 9, 2001; the City received full payment for the issue, including interest from the original maturity date through the payoff date, on March 9, 2001. Note 3: Fixed Assets Changes in the General Fixed Assets Account u duri � u t Grp N � ng 2000 were as follows: Balance Balance Jan. 1, 2000 Additions Disposals Dec. 31, 2000 Land $2,473,864 $1,077,766 $3,551,630 Buildings & Improvements 14,716,724 1,077,663 $107,484 15,686,903 Park Improvements 3,600,241 116 457 15 3,701 Furniture & Fixtures 1,360,475 97,727 194,634 1,263,568 Departmental Equipment 1,210,110 184,565 272,976 1,121,699 TOTAL GENERAL FIXED ASSETS $23,361,414 $2,554,178 $590,617 $25,324,975 The following is a summary of proprietary fund -type fixed assets at December 31, 2000: Internal Enterprise Service Funds Funds Land $3,198,651 Land Improvements 491,078 Buildings & Improvements 20,779,526 Mains & Lines 33,340,939 Departmental Equipment 1,475,285 $5,727,814 Total 59,285,479 5,727,814 Less accumulated depreciation (12,392,023) (2,738,853) Net $46,893,456 $2,988,961 Note 4: Contributed Ca iral During 2000 contributed capital changed by the following amounts: Internal Enterprise Service Funds Funds Additions: Improvement construction $23,605 Deductions: Depreciation on contributed assets (338,788) ($170,300) Net change (315,183) (170,300) Contributed Capital, January 1, 2000 22,933,780 3,174,526 Contributed Capital, December 31, 2000 $22,618,597 $3,004,228 37 Note 5: Operatinq Leases During 2000, the City leased space for the operation of two of its three municipal liquor stores. One of these is a lease renewed on a year -by -year basis. This lease ended in March 2001 and was not renewed. The other was a non - 1 cancelable two year lease which ended in July 2000. This lease was allowed to expire, as the store moved to a new location in August 2000. A ten -year lease, with an option of an additional ten years, has been signed for the new location. These leases provide for minimum rent payments, plus a pro -rata share of common area expenses. In addition, the latter lease requires additional lease payments if agreed upon revenue thresholds are attained. Total rental expense under the lease agreements for the years ended December 31, 2000 and 1999 was $117,659 and $69,922, respectively. Future minimum rent payments under non - cancelable leases are as follows: Year Endinq Amount 2001 $98,169 2002 -2004 91,350/yr. 2005 95,025 2006 -2009 100,170/yr. 2010 58,433 $ 926.357 The Earle Brown Heritage Center Fund, which operates as an enterprise fund, leased space to two tenants in 2000. One lease is for a ten year period commencing January 1, 1999. Another tenant has signed two separate leases which are both renewable automatically for one year terms. The first lease began April 15, 1999 and is for $19,200 per year. The second lease period ' commenced 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 expenditures under the lease agreements were as follows: ' 2000 1999 Rental Revenues $ 60,138 $ 51,538 Rental Expenditures $ 22,112 $ 32,338 Future minimum rentals to be received are as follows: YEAR 2001 2002 2003 2004 2005 2006 2007 2008 CASH $39,637 $39,660 $39,912 $40,020 $41,200 $41,307 $42,488 $38,947 TRADE- $22,800 OUT 38 L 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, 2000: General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total Bonds payable January 1 $10,915,000 $10,420,000 $5,920,000 $1,230,000 $28,485,000 Bonds issued 735,000 735,000 Bonds retired 2,155,000 1,280,000 535,000 180,000 4,150,000 Bonds payable December 31 $8,760,000 $9,140,000 $6,120,000 $1,050,000 $25,070,000 The annual requirements to amortize all outstanding debt as of December 31, 2000, including interest of $6,145,189, are as follows: General Tax Special Storm Sewer Obligation Increment Assessment Revenue Bonds Bonds Bonds Bonds Total 2001 $1,032,651 $1,969,409 $952,563 $239,950 $4,194,573 2002 1,030,749 1,973,893 1,011,903 240,100 4,256,645 2003 1,027,356 1,985,412 982,309 239,540 4,234,617 2004 1,032,318 2,012,303 941,898 238,250 4,224,769 2005 1,035,374 531,123 905,773 236,210 2,708,480 , 2006 on 6,213,374 2,863,878 2,518,853 11,596,105 $11,371,822 $11,336,018 $7,313,299 $1,194,050 $31,215,189 , 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. There are a number of financial covenants contained in the various bond indentures. The City is in compliance with these financial covenants. 39 ' Note 6: Lona Term Debt lcont'dl 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 $1,585,000 Police and Fire Building Bonds 4.1 -4.9 2 -01 8 -01 12 -01 -97 02 -01 -13 7,900,000 $725,000 7,175,000 Total $9,485,000 $725,000 $8,760,000 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 $3,225,000 $2,825,000 1992 Refunding Tax Increment 4.5 -5.6 2 -01 8 -01 02 -01 -92 02 -01 -03 4,270,000 2,025,000 2,245,000 1995 Taxable Tax Increment Bonds 6.0 -6.75 2 -01 8 -01 11 -01 -95 02 -01 -11 4,560,000 490,000 4,070,000 Total $14,880,000 $5,740,000 $9,140,000 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 $390,000 $445,000 1995 Street Improvement Bonds 4.0 -4.9 2 -01 8 -01 11 -01 -95 02 -01 -06 780,000 285,000 495,000 1996 Street Improvement Bonds 4.2 -5.1 2 -01 8 -01 11 -01 -96 02 -01 -07 1,440,000 390,000 1,050,000 1997 Street Improvement Bonds 4.0 -4.7 2 -01 8 -01 12 -01 -97 02 -01 -08 1,075,000 230,000 845,000 1998 Street Improvement Bonds 3.4 -4.2 2 -01 8 -01 12 -01 -98 02 -01 -09 1,085,000 120,000 965,000 1999 Street Improvement Bonds 4.1 -5.0 2 -01 8 -01 12 -01 -99 02 -01 -10 1,585,000 - 1,585,000 2000 Street Improvement Bonds 4.3 -4.9 2 -01 8 -01 12 -01 -00 02 -01 -11 735,000 - 735,000 Total $7,535,000 $1,415,000 $6,120,000 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 $780,000 $1,050,000 Total $1,830,000 $780,000 $1,050,000 ' 40 Note 6: Lona Term Debt (cont'd) ' In addition to the bonded debt listed above, the City of Brooklyn Center has two amounts recorded as "Other long term liabilities." These are loans extended to the City by Northern States Power for the purpose of promoting energy conservation improvements to City owned facilities. The first 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. The second loan is recorded in the Water Fund and was used for installation of controls on well pumps. It is payable in 51 monthly installments of $4,692 which commenced on October 2, 1998. General Long -Term Water Debt Fund Total Other long term liabilities payable January 1 $37,475 $168,906 $206,381 Liabilities retired (16,656) (56,302) (72,958) Current portion (56,302) (56,302) , Other long term liabilities payable December 31 $20,819 56 302 1 , $ $77, 1 2 Conduit debt obligations From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds to provide assistance to private sector entities for the acquisition and construction of housing, industrial, and commercial facilities deemed to be in the public interest. The bonds , are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2000, there were five series of Housing Revenue or Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of approximately $21,840,000. 41 = = = = = = r r rr ri rr rr rr rr rr rr rr r� rr Note 7: Seament Information Segment information as of and for the year ended December 31, 2000 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 $3,584,829 $359,511 $3,992,737 $210,168 $1,348,221 $2,398,323 $1,074,619 $12,968,408 Depreciation Expense 14,018 13,837 405,284 400,358 213,401 153,206 1,200,104 Operating Income (Loss) 153,681 74,352 125,024 (4,721) 16,811 476,878 767,230 1,609,255 Operating Transfers Out (75,000) (75,000) Net Income (Loss) 69,557 77,704 101,176 (2,016) 166,233 531,434 1,021,154 1,965,242 Current Capital Contributions 23,605 23,605 Property, Plant & Equipment: Additions 253,002 5,313 148,591 972,460 1,295,282 1,095,164 3,769,812 Deletions 482,385 7,170 94,282 51,066 39,652 674,555 Net Working Capital 676,778 46,389 (226,929) 97,579 2,569,055 1,327,553 (95,674) 4,394,751 Total Assets 1,119,155 1,758,573 11,420,660 98,829 15,967,410 12,367,956 10,282,916 53,015,499 Bonds and Other Long -Term Liabilities Payable from Operating Revenues 1,000,000 112,604 1,050,000 2,162,604 Total Equity 931,422 748,526 10,624,303 97,579 15,716,961 12,223,215 9,079,899 49,421,905 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 $164,254 Sanitary Sewer Fund - Special Assessments 4,022 Storm Drainage Fund Debt Service 239,950 Special Assessments 24,950 Total Reserved Retained Earnings 433,176 Fund Balances: General Fund: Advances to Other Funds 105,074 Special Revenue Funds: ' Economic Development Authority Fund Bond Proceeds 977,619 Debt Service Funds: General Obligation Bonds - Debt Service 775,911 Tax Increment Bonds - Debt Service 1,970,836 Special Assessment Bonds - Debt Service 1,989,862 Total Debt Service Funds 4,736,609 Capital Projects Funds: Capital Improvements Fund p P Advances to Other Funds 1,000,000 Municipal State Aid for Construction Fund Advances to Other Funds 593,069 Total Capital Projects Funds 1,593,069 , Total Reserved Fund Balances 7,412,371 Total Reserved Fund Equity $7,845,547 , Desianated Fund Eauitv General Fund: Working Capital $6,097,387 , Total General Fund $6,097,387 43 ' ' Note 9: Interfund Receivables and Pavables Due to /from other funds are short -term receivables /payables which have interest rates of 0% to 6.5 %. Advances to /from other funds are considered long -term receivables /payables. Advances have interest rates of 0% to 7% with 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. Due from Due to Other Funds Other Funds Special Revenue Funds: Tax Increment #3 Fund $ 139,293 Earle Brown Farm Tax Increment Fund $ 122,136 ' Tax Increment #4 Fund 17,157 Enterprise Funds: Water Utility Fund 84,636 Storm Sewer Fund 84,636 Total $ 223,929 $ 223,929 Advances to Advances from Other Funds Other Funds General Fund $ 105,074 r Special Revenue Funds: Earle Brown Farm Tax Increment Fund $ 698,143 Capital Projects Funds: Capital Improvements Fund 1,000,000 Municipal State Aid Construction Fund 593,069 Enterprise Funds: Golf Course Fund 1,000,000 Total $ 1,698,143 $ 1,698,143 ' 44 Note 10: Individual Fund Disclosures Deficit fund balances exist at December 31, 2000 in the followina funds: Special Revenue Funds: Earle Brown Tax Increment Financing District: , Unreserved deficit fund balance $822,338 Tax Increment District No. 4 Unreserved deficit fund balance $ 20,995 These deficits are 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, 2000, expenditures exceeded budget at the fund level (i.e., the legal level of budgetary control) as follows: Special Revenue Funds: Excess ' Earle Brown Tax Increment District $ 19 Tax Increment District No. 4 $ 3,533 Note 11: Contin q encies 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. Note 12: Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions and natural disasters for which the City carries commercial insurance policies. The City retains risk for the deductible portions of the insurance policies. The amount of these deductibles , is considered immaterial to the financial statements.' 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. 45 Note 13: Post - Emplovment 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. I 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, 2000, eight employees currently participate in this program. The cost of City paid health care premiums for the years ended December 31, 2000 and 1999 was $17,715 and $16,354, respectively. The $1,423,243 recorded as a liability reflects the City's current balance reserved for this obligation. The City's current analysis estimates that annual contributions of $59,000 per year will be required to fully fund this program. The liability will be analyzed on an ongoing basis. Note 14: Defined Benefit Pension Plans - Statewide A. Plan Description i 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 I I, 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. ' 46 Note 14: Defined Benefit Pension Plans - Statewide (cont'd) ' 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 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 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 over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, before retirement benefits begin. The benefit rovisions stated in the previous paragraphs of this section are , p p 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. 47 ' Note 14: Defined Benefit Pension Plans - Statewide (cont'd) B. Fundinq Policv Minnesota Statutes Chapter 353 sets the rate for employer and employee p 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, 2000, 1999, and 1998 were $299,879, $285,779, and $277,561, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ended December 31, 2000, 1999, and 1998 were $223,541, $254,859, and $269,796, respectively. The City's contributions were equal to the contractually required contributions for each year as set by State statute. Note 15: Pension Plan - Brooklyn Center Fire Department Relief Association Plan Description ' The City contributes to the Brooklyn Center Fire Department Relief Association (the Association) which is the administrator of a single employer retirement system to provide a retirement plan (the Plan) to volunteer 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. Contributions: Total contributions to the Plan in 2000 were $120,175, of which $28,020 was levied by the City of Brooklyn Center and $92,155 was from the State of Minnesota. The actuarially determined contribution based on an actuarial valuation performed at January 1, 1999 was $96,617, which represents funding for normal cost of $71,537 and administration of $25,080. Actual contributions have continued at higher levels to allow for a transition to a defined contribution plan in the future. II � 48 Note 15: Pension Plan - Brooklyn Center Fire Department Relief Association (cont'd) ' The information below is the most recent data available. Actuarial valuation date: 1/1/00, updated from the base year actuarial study as of 1/1/99. Actuarial cost method: Entry age normal cost method. ' Amortization method: The Plan was fully funded as of 12/31/00. Remaining amortization period: None. Actuarial assumptions: Investment rate of return 7.5% compounded annually Projected salary increases Not applicable ' Post retirement benefits None Three -vear Trend Information Negative Annual Net Year Pension APC Pension ' Ended Cost (APC) Contributed Obliqation 12/31197 $108,451 $123,070 $362,882 12/31/98 $95,176 $107,215 $438,538 12/31/99 $96,617 $116,570 $789,400 Schedule of Fundinq Progress Actuarial Excess of Actuarial Value Accrued Assets over Funded Fiscal of Assets Liability Liability Funded Ratio Year (A) (B) (A) -(B) A/B 1997 $2,966,487 $2,603,605 $362,882 113.9% 1998 3,056,068 2,617,530 438,538 116.8% 1999 3,319,342 2,529,942 789,400 131.2% (1) 1998 is based on an actuarial valuation as of 1/1/99. 1997 and 1999 are based on an actuarial update of the 1/1/97 and 1/1/99 actuarial valuations, respectively. (2) The Brooklyn Center Fire Department is a volunteer organization; thus no ' covered payroll exists. Related Partv Investments As of December 31, 2000, the Association held no securities issued by the City or other related parties. 49 ' Note 16: Fund Chanqes The following fund was opened during 2000: Debt Service: GO Street Improvement Bonds of 2000 Fund ' No funds were closed during 2000. Note 17: Residual Equitv Transfers The General Fund transferred $415,000 to the Capital Improvements Capital Projects Fund and $265,000 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 and street ' improvements. The amounts are not expected to be repaid and are reflected as residual equity transfers in the City's financial statements. 50 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 and such other funds as may be required b proper, Y q Y 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. 'I ' 51 AA = 1 City of Brooklyn Center General Fund COMPARATIVE BALANCE SHEET December 31, 2000 2000 1999 ASSETS Cash and cash equivalents $1,887,383 $1,218,275 Investments 6,811,176 7,117,968 Accounts receivable 78,883 66,188 Delinquent taxes receivable 68,299 166,999 Due from other funds 220,122 Due from other governments 105,902 140,859 Advance to other funds 105,074 105,074 TOTAL ASSETS $9,056,717 $9,035,485 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $313,966 $300,707 Accrued salaries payable 372,090 374,450 Accrued vacation and sick pay 641,486 634,389 Deferred revenue - delinquent taxes 68,299 166,999 Deferred revenue - tax abatements 208,833 250,233 Total Liabilities 1,604,674 1,726,778 Fund Balance: Reserved for advances to other funds 105,074 105,074 , Unreserved fund balance Designated: Working capital 6,097,387 5,937,168 Undesignated 1,249,582 1,266,465 Total Fund Balance 7,452,043 7,308,707 TOTAL LIABILITIES AND FUND BALANCE $9,056,717 $9,035,485 52 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $8,134,653 $8,703,772 $569,119 $8,333,440 ' Property tax abatements reserve 41,400 41,400 (113,949) Licenses and permits 512,050 632,549 120,499 763,960 Intergovernmental 4,067,577 4,076,169 8,592 3,911,480 ' Charges for services 779,750 779,060 (690) 739,054 Court fines 200,000 180,676 (19,324) 205,460 Investment earnings 324,000 378,481 54,481 346,382 Change in fair value of investments (153,454) (153,454) (158,708) Miscellaneous 12,000 9,713 (2,287) 6,679 Total Revenues 14,030,030 14,648,366 618,336 14,033,798 Expenditures General government 2,402,331 2,421,762 19,431 2,257,957 Public safety 5,655,628 5,437,360 (218,268) 5,336,622 Public works 2,047,036 2,100,865 53,829 1,904,205 Community services 95,030 95,148 118 83,295 Parks and recreation 2,314,041 2,216,098 (97,943) 2,132,511 Economic development 308,750 397,507 88,757 383,927 Non departmental 478,843 419,789 (59,054) 343,925 Administrative Services Reimbursement (749,233) (795,737) (46,504) (670,390) Total Expenditures 12,552,426 12,292,792 (259,634) 11,772,052 Excess of Revenues Over Expenditures 1,477,604 2,355,574 877,970 2,261,746 Other Financing Uses Operating transfers out (1,477,604) (1,532,238) (54,634) (1,591,039) Total Other Financing Uses (1,477,604) (1,532,238) (54,634) (1,591,039) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses 823,336 823,336 670,707 Fund Balance January 1 7,308,707 7,308,707 7,338,000 Equity Transfers Out (680,000) (680,000) (700,000) Fund Balance December 31 $7,308,707 $7,452,043 $143,336 $7,308,707 53 1 (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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Ad Valorem Taxes Gross property taxes $7,484,653 $7,807,516 $322,863 $7,525,118 Penalties and interest 55,900 55,900 (1,994) Lodging tax 650,000 836,857 186,857 808,266 Special assessments 3,499 3,499 2,050 Total Taxes 8,134,653 8,703,772 569,119 8,333,440 Reserve for Property Tax Abatements Tax abatements under litigation 41,400 41,400 (113,949) Total Property Tax Abatements 41,400 41,400 (113,949) Licenses and Permits Liquor and beer 126,000 100,575 (25,425) 108,135 Building permits 240,000 353,915 113,915 482,144 Mechanical permits 50,000 60,874 10,874 58,365 Sewer and water permits 1,000 1,073 73 1,741 Plumbing permits 26,000 31,204 5,204 45,743 Garbage licenses 3,060 3,141 81 2,845 Taxicab licenses 750 625 (125) 175 Mechanical licenses 4,500 5,825 1,325 4,154 Pawn shop licenses 8,000 12,000 4,000 12,750 Service station licenses 3,190 2,140 (1,050) 3,933 Vehicle dealer licenses 1,750 1,750 1,575 Bowling licenses 700 720 20 720 Cigarette licenses 3,900 3,150 (750) 3,825 Sign permits 2,500 4,316 1,816 2,925 Rental dwelling permits 30,000 40,715 10,715 19,182 Amusement licenses 2,668 2,668 7,432 Dog licenses 8,000 3,866 (4,134) 5,836 Miscellaneous business license 2,700 3,992 1,292 2,480 Total Licenses and Permits 512,050 632,549 120,499 763,960 Interaovernmental Federal grants: Miscellaneous grants 5,000 4,737 (263) 5,351 Total Federal Grants $5,000 $4,737 ($263) $5,351 54 (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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Intergovernmental (continued) State grants: Local government aid $2,122,635 $2,122,635 $2,069,744 Local performance aid 34,529 Homestead credit aid 1,379,768 1,379,768 1,307,465 Police pension aid 260,931 258,973 ($1,958) 248,748 PERA aid 34,365 34,365 34,365 Fireperson pension aid 87,036 92,155 5,119 89,484 Police training 13,700 16,326 2,626 14,156 E -911 phone service 16,000 19,229 3,229 17,019 Street maintenance aid 90,000 90,000 90,000 Low income housing aid 56,892 56,892 Miscellaneous grants 1,250 1,089 (161) 619 Total State Grants 4,062,577 4,071,432 8,855 3,906,129 Total Intergovernmental 4,067,577 4,076,169 8,592 3,911,480 Charges for Services General government charges 23,600 51,016 27,416 28,058 Public safety charges 31,000 40,436 9,436 41,864 Recreation fees 725,150 687,608 (37,542) 669,132 Total Charges for Services 779,750 779,060 (690) 739,054 Court Fines. Fines 200,000 180,676 (19,324) 205,460 Total Court Fines 200,000 180,676 (19,324) 205,460 Miscellaneous Interest on investments 324,000 378,481 54,481 346,382 Change in fair value of investments (153,454) (153,454) (158,708) Other 12,000 9,713 (2,287) 6,679 Total Miscellaneous 336,000 234,740 (101,260) 194,353 Total Revenues $14,030,030 $14,648,366 $618,336 $14,033,798 ' 55 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual General Governmen Mayor and Council: Personal services $41,897 $40,899 ($998) $40,435 Supplies 1,550 2,892 1,342 1,566 Services and other charges 76,800 70,258 (6,542) 72,731 Total Mayor and Council 120,247 114,049 (6,198) 114,732 Administrative Office: Personal services 366,353 369,075 2,722 337,409 Supplies 6,150 5,099 (1,051) 4,054 Services and other charges 66,120 55,808 (10,312) 77,576 Capital outlay 2,800 5,617 2,817 1,934 Total Administrative Office 441,423 435,599 (5,824) 420,973 Elections and Voter Registration: Personal services 70,923 72,167 1,244 44,271 Supplies 2,500 2,806 306 Services and other charges 8,950 1,633 (7,317) 623 Total Elections and Voter Registration 82,373 76,606 (5,767) 44,894 Assessor's Office: Personal services 230,423 229,049 (1,374) 209,435 Supplies 2,500 3,174 674 2,416 Services and other charges 33,426 31,070 (2,356) 30,329 Capital outlay 2,000 2,000 6,167 Total Assessor's Office 268,349 265,293 (3,056) 248,347 Finance: Personal services 398,248 377,983 (20,265) 368,311 Supplies 6,100 5,204 (896) 6,020 Services and other charges 8,420 8,133 (287) 6,833 Capital outlay 5,000 3,977 (1,023) 5,111 Total Finance 417,768 395,297 (22,471) 386,275 Legal: Services and other charges 220,000 276,384 56,384 268,388 Total Legal 220,000 276,384 56,384 268,388 Government Buildings: Personal services 237,591 228,584 (9,007) 192,470 Supplies 78,050 65,398 (12,652) 74,567 Services and other charges 275,461 298,863 23,402 271,942 Capital outlay 13,000 19,387 6,387 23,929 Total Government Buildings $604,102 $612,232 $8,130 $562,908 56 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual General Government !_continued) Data Processing: Personal services $72,189 $72,059 ($130) $58,387 Supplies 10,000 10,409 409 7,692 Services and other charges 133,880 134,379 499 128,858 Capital outlay 32,000 29,455 (2,545) 16,503 Total Data Processing 248,069 246,302 (1,767) 211,440 Total General Government 2,402,331 2,421,762 19,431 2,257,957 Public Safetv Police Protection: Personal services 3,728,520 3,515,848 (212,672) 3,584,414 Supplies 71,031 60,169 (10,862) 65,959 Services and other charges 700,394 694,170 (6,224) 647,662 Capital outlay 34,100 48,559 14,459 27,686 Total Police Protection 4,534,045 4,318,746 (215,299) 4,325,721 Fire Protection: Personal services 388,042 391,744 3,702 360,714 Supplies 35,300 35,074 (226) 33,649 Services and other charges 182,431 170,365 (12,066) 147,816 Capital outlay 43,500 65,878 22,378 54,642 Total Fire Protection 649,273 663,061 13,788 596,821 Protective Inspection: Personal services 384,159 374,202 (9,957) 333,041 Supplies 3,200 3,080 (120) 3,249 Services and other charges 37,136 34,924 (2,212) 27,779 Capital outlay 7,500 Total Protective Inspection 424,495 412,206 (12,289) 371,569 Emergency Preparedness: Personal services 38,396 31,122 (7,274) 32,587 Supplies 1,900 1,661 (239) 937 Services and other charges 7,519 10,564 3,045 8,987 Total Emergency Preparedness 47,815 43,347 (4,468) 42,511 Total Public Safety $5,655,628 $5,437,360 ($218,268) $5,336,622 57 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Public Works Engineering Department: Personal services $609,686 $616,271 $6,585 $578,709 Supplies 5,050 4,203 (847) 4,932 Services and other charges 23,764 23,444 (320) 21,674 Capital outlay 13,800 7,832 (5,968) 16,955 Total Engineering Department 652,300 651,750 (550) 622,270 Street Department: Personal services 607,181 643,894 36,713 558,924 Supplies 168,500 182,810 14,310 132,860 Services and other charges 524,255 524,986 731 500,322 Capital outlay 94,800 97,425 2,625 89,829 Total Street Department 1,394,736 1,449,115 54,379 1,281,935 Total Public Works 2,047,036 2,100,865 53,829 1,904,205 Communitv Services Social Services: Service and other charges 95,030 95,148 118 83,295 Total Community Services 95,030 95,148 118 83,295 Parks and Recreation Administration: Personal services 382,837 385,911 3,074 371,701 Supplies 16,600 15,808 (792) 12,856 Services and other charges 53,700 49,766 (3,934) 43,947 Capital outlay 18,862 16,575 (2,287) 21,924 Total Administration 471,999 468,060 (3,939) 450,428 Adult Programs: Personal services 79,933 65,740 (14,193) 74,065 Supplies 24,800 19,412 (5,388) 28,182 Services and other charges 119,750 99,824 (19,926) 107,143 Total Adult Programs 224,483 184,976 (39,507) 209,390 Teen Programs: Personal services 12,418 4,521 (7,897) 2,977 Supplies 1,400 134 (1,266) 58 Services and other charges 1,500 (1,500) 1,308 Total Teen Programs $15,318 $4,655 ($10,663) $4,343 58 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Parks and Recreati (continued) Children's Programs: Personal services $92,823 $100,764 $7,941 $82,818 Supplies 11,925 13,269 1,344 13,170 Services and other charges 5,450 4,768 (682) 5,869 Total Children's Programs 110,198 118,801 8,603 101,857 General Programs: Personal services 22,907 30,123 7,216 23,053 Supplies 200 122 (78) 4 Services and other charges 33,187 39,177 5,990 31,198 Total General Programs 56,294 69,422 13,128 54,255 Community Center: ' Personal services 399,425 405,811 6,386 374,111 Supplies 48,200 53,099 4,899 50,603 Services and other charges 54,100 42,462 (11,638) 53,331 Capital outlay 4,887 Total Community Center 501,725 501,372 (353) 482,932 Park Maintenance: Personal services 552,985 519,662 (33,323) 504,118 Supplies 64,250 51,831 (12,419) 47,986 Services and other charges 271,989 272,077 88 242,612 Capital outlay 44,800 25,242 (19,558) 34,590 Total Park Maintenance 934,024 868,812 (65,212) 829,306 Total Parks and Recreation 2,314,041 2,216,098 (97,943) 2,132,511 Economic Devpinpmanf . Convention Bureau: Services and other charges 308,750 397,507 88,757 383,927 Total Economic Development 308,750 397,507 88,757 383,927 Nonde oartmental Expenditures not Charged to Departments: Personal services 49,785 34,219 (15,566) 40,986 Supplies 27,000 25,793 (1,207) 26,276 Services and other charges 399,558 351,464 (48,094) 258,840 Capital outlay 2,500 8,313 5,813 17,823 Total Nondepartmental $478,843 $419,789 ($59,054) $343,925 59 �3 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Administrative Service Reimbursement Charged to other funds ($749,233) ($795,737) ($46,504) ($670,390) Total Administrative Service Reimbursement (749,233) (795,737) (46,504) (670,390) Other Financina Uses Operating transfers out: Special Assessment Construction Fund 394,197 394,197 424,917 Earle Brown Heritage Center Fund 4,357 Capital Project Fund 100,000 100,000 Employee Retirement Fund 120,000 Special Assessment Bonds Debt Service Fund 237,681 258,488 20,807 262,274 Police & Fire Building Debt Service Fund 745,726 779,553 33,827 779,491 Total Other Financing Uses 1,477,604 1,532,238 54,634 1,591,039 Total Expenditures and Other Financing Uses $14,030,030 $13,825,030 ($205,000) $13,363,091 ' 1 60 i 1 City of Brooklyn Center, Minnesota SPECIAL REVENUE FU The Special Revenue Funds are established to account for revenues derived from taxes and /or other specific revenue sources. These resources are usually restricted by 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. Housinq and RedevelonmentAuthority Fund (H.R.A.): This fund has authority to levy an ad valorem property tax for the purpose of conducting housing and redevelopment projects. These projects are accounted for in the E.D.A. Fund; all tax proceeds are transferred to that fund. Economic Development Authority 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 Financing 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. r 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 Druq Forfeiture Fund: This fund was established to account for property and /or cash seized by Police Department personnel. Community Development 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. Citv 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 i recreation grant and a local planning assistance grant. i 61 City of Brooklyn Center Special Revenue Funds COMBINING BALANCE SHEET December 31, 2000 Economic Earle Brown Tax Development Tax Incr. Increment Authority Financing District Fund District No. 3 ASSETS Cash and cash equivalents $233,516 $503,356 Investments 846,402 1,824,463 Accounts receivable 12,334 Delinquent taxes receivable 3,090 Due from other funds 139,293 Due from other governments 447,322 TOTAL ASSETS $1,542,664 $0 $2,467,112 LIABILITIES AND FUND BALANCES (DEFICITS) Liabilities: Accounts payable $473,739 $2,059 $2,943 Due to other funds 122,136 Accrued salaries payable ' Accrued vacation and sick pay 17,704 Advances from other funds 698,143 Deferred revenue 3,090 Total Liabilities 494,533 822,338 2,943 Fund Balances (Deficits): Reserved: Bond proceeds 977,619 Unreserved 70,512 (822,338) 2,464,169 Total Fund Balances (Deficits) 1,048,131 (822,338) 2,464,169 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) $1,542,664 $0 $2,467,112 62 B -1 Tax Increment Police Drug City District Forfeiture Initiatives Totals No. 4 Fund Grant Fund 2000 1999 $8,265 $19,000 $764,137 $497,770 29,958 68,869 2,769,692 2,902,799 12,334 12,188 3,090 7,481 139,293 86,219 447,322 1,991 $0 $38,223 $87,869 $4,135,868 $3,508,448 1 $3,838 $634 $483,213 $59,436 17,157 139,293 17,236 6,584 17,704 18,390 698,143 698,143 3,090 7,481 20,995 634 1,341,443 807,270 977,619 977,619 (20,995) 37,589 $87,869 1,816,806 1,723,559 (20,995) 37,589 87,869 2,794,425 2,701,178 $0 $38,223 $87,869 $4,135,868 $3,508,448 63 City of Brooklyn Center Special Revenue Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 Housing and Economic Earle Brown Tax Redevelopment Development Tax Increment Increment Authority Authority Financing District Fund Fund District No.3 Revenues_ Property taxes $149,892 $210,588 $1,186,908 $1,999,665 Intergovernmental 19,684 1,812,425 Investment earnings 134,209 18,364 96,804 Change in fair value of investments (49,279) (7,163) (55,033) Miscellaneous 32,759 Total Revenues 169,576 2,140,702 1,198,109 2,041,436 Expenditures Personal services 182,426 Supplies 251 Services and other charges 2,008,456 4,019 157,301 Capital outlay 1,636,491 Interest Total Expenditures 3,827,624 4,019 157,301 Excess (Deficiency) of Revenues Over Expenditures 169,576 (1,686,922) 1,194,090 1,884,135 Other Financing ( Uses) Sources Sale of fixed assets 194,491 Operating transfers in 401,884 Operating transfers out (169,576) (1,360,000) (560,000) Total Other Financing (Uses) Sources (169,576) 596,375 (1,360,000) (560,000) (Deficiency) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (1,090,547) (165,910) 1,324,135 Fund Balances (Deficits) January 1 2,138,678 (656,428) 1,140,034 Fund Balances (Deficits) December 31 $0 $1,048,131 ($822,338) $2,464,169 64 B -2 Tax Police i C ty Increment Drug Community Initiatives District Forfeiture Development Grant Totals No. 4 Fund Block Grant Fund 2000 1999 $9,535 $3,556,588 $3,233,790 $232,308 $174,583 2,239,000 1,663,648 $2,078 1,433 252,888 200,873 (905) (1,299) (113,679) (97,456) 16,880 55,660 105,299 140,367 9,535 18,053 232,308 230,377 6,040,096 5,141,222 7,964 190,390 186,244 3,798 10,566 14,615 9,665 12,857 2,611 126,948 2,312,192 2,205,934 67,441 1,703,932 3,522,148 211 211 337 13,068 6,409 212,919 4,221,340 5,924,328 (3,533) 11,644 232,308 17,458 1,818,756 (783,106) 194,491 2,411,987 401,884 233,751 (232,308) (2,321,884) (2,113,751) (232,308) (1,725,509) 531,987 ' (3,533) 11,644 17,458 93,247 (251,119) (17,462) 25,945 70,411 2,701,178 2,952,297 ($20,995) $37,589 $0 $87,869 $2,794,425 $2,701,178 65 BB = 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $144,482 $149,892 $5,410 $137,711 Intergovernmental 19,684 19,684 18,304 Total Revenues 164,166 169,576 5,410 156,015 Other Financina Uses Operating transfers out (164,166) (169,576) (5,410) (156,015) Excess (Deficiency) of Revenues Over Other Financing Uses Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 66 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, 2000 2000 Actual Over r (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $202,240 $210,588 $8,348 $193,489 Intergovernmental 1,812,425 1,812,425 0 1,454,756 Investment earnings 30,000 134,209 104,209 140,557 Change in fair value of investments (49,279) (49,279) (73,789) Miscellaneous 12,000 32,759 20,759 87,148 Total Revenues 2,056,665 2,140,702 84,037 1,802,161 Expenditures Personal services 183,758 182,426 (1,332) 172,309 Supplies 1,900 251 (1,649) 583 Services and other charges 2,188,673 2,008,456 (180,217) 1,821,775 Capital outlays 1,555,574 1,636,491 80,917 3,512,952 Total Expenditures 3,929,905 3,827,624 (102,281) 5,507,619 (Deficiency) Excess of Revenues Over Expenditures (1,873,240) (1,686,922) 186,318 (3,705,458) Other Financino Sources_ Sale of fixed assets 194,491 194,491 2,411,987 Operating transfers in 405,474 401,884 (3,590) 233,751 Total Other Financing Sources 405,474 596,375 190,901 2,645,738 (Deficiency) Excess of Revenues and Other Financing Sources Over Expenditures (1,467,766) (1,090,547) 377,219 (1,059,720) Fund Balance January 1 2,138,678 2,138,678 3,198,398 Fund Balance December 31 $670,912 $1,048,131 $377,219 $2,138,678 67 B -5 City of Brooklyn Center Earle Brown Farm Tax Increment District Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2000 ' 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $1,203,500 $1,186,908 ($16,592) $1,337,190 Investment earnings 15,000 18,364 3,364 17,862 Change in fair value of investments (7,163) (7,163) (8,145) Total Revenues 1,218,500 1,198,109 (20,391) 1,346,907 Exnenditures Services and other charges 4,000 4,019 19 1,898 Total Expenditures 4,000 4,019 19 1,898 Excess (Deficiency) of Revenues Over Expenditures 1,214,500 1,194,090 (20,410) 1,345,009 Other Financina Uses Operating transfers out (1,360,000) (1,360,000) (1,330,000) Total Other Financing Uses (1,360,000) (1,360,000) (1,330,000) (Deficiency) Excess of Revenues Over Expenditures and Other Financing Uses (145,500) (165,910) (20,410) 15,009 Fund Balance (Deficit) January 1 (656,428) (656,428) (671,437) Fund Balance (Deficit) December 31 ($801,928) ($822,338) ($20,410) ($656,428) 68 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, 2000 ' 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $2,022,255 $1,999,665 ($22,590) $1,565,400 Investment earnings 25,000 96,804 71,804 37,832 Change in fair value of investments (55,033) (55,033) (14,174) Total Revenues 2,047,255 2,041,436 (5,819) 1,589,058 Expenditures Services and other charges 209,801 157,301 (52,500) 266,950 Total Expenditures 209,801 157,301 (52,500) 266,950 Excess of Revenues Over Expenditures 1,837,454 1,884,135 46,681 1,322,108 Other Financina Uses Operating transfers out (560,000) (560,000) (550,000) Total Other Financing Uses (560,000) (560,000) (550,000) Excess of Revenues Over Expenditures and Other Financing Uses 1,277,454 1,324,135 46,681 772,108 Fund Balance January 1 1,140,034 1,140,034 367,926 Fund Balance December 31 $2,417,488 $2,464,169 $46,681 $1,140,034 69 I B -7 City of Brooklyn Center Tax Increment District No. 4 Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Property taxes $9,535 $9,535 Total Revenues 9,535 9,535 Expenditures Services and other charges 9,535 12,857 $3,322 $17,125 Interest 211 211 337 Total Expenditures 9,535 13,068 3,533 17,462 Deficiency of Revenues Over Expenditures (3,533) (3,533) (17,462) Fund Deficit January 1 (17,462) (17,462) Fund Deficit December 31 ($17,462) ($20,995) ($3,533) ($17,462) S 70 �I 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Forfeited drug money $20,000 $16,880 ($3,120) $20,008 Investment earnings 2,078 2,078 1,714 Change in fair value of investments (905) (905) (634) Total Revenues 20,000 18,053 (1,947) 21,088 Expenditures Supplies 8,000 3,798 (4,202) 8,788 Services and other charges 2,000 2,611 611 2,574 Capital outlays 10,000 (10,000) 9,196 Total Expenditures 20,000 6,409 (13,591) 20,558 Excess of Revenues Over Expenditures 11,644 11,644 530 Fund Balance January 1 25,945 25,945 25,415 Fund Balance December 31 $25,945 $37,589 $11,644 $25,945 a r 71 I 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, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Intergovernmental: Federal Grants $241,308 $232,308 ($9,000) $77,736 Total Revenues 241,308 232,308 (9,000) 77,736 Other Financina Uses Operating transfers out (241,308) (232,308) 9,000 (77,736) Excess (Deficiency) of Revenues Over Other Financing Uses ' Fund Balance January 1 Fund Balance December 31 $0 $0 $0 $0 72 City of Brooklyn Center e City Initiatives Grant Fund STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2000 2000 Actual Over (Under) 1999 Budget Actual Budget Actual Revenues Intergovernmental $175,000 $174,583 ($417) $112,852 ' Investment earnings 1,433 1,433 2,908 Change in fair value of investments (1,299) (1,299) (714) Miscellaneous 55,000 55,660 660 33,211 Total Revenues 230,000 230,377 377 148,257 Expenditures Personal services 75,000 7,964 (67,036) 13,935 Supplies 10,566 10,566 294 Services and other charges 95,000 126,948 31,948 95,612 Capital outlays 60,000 67,441 7,441 Total Expenditures 230,000 212,919 (17,081) 109,841 Excess of Revenues Over Expenditures 17,458 17,458 38,416 Fund Balance January 1 70,411 70,411 31,995 Fund Balance December 31 $70,411 $87,869 $17,458 $70,411 r r 73 1 i 1 City of Brooklyn Center, Minnesota r DEBT SERVICE FUNDS The Debt Service Funds were established to accountforthe 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 t Service Funds included in this section are. General Obliqation 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. r 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. 1 r r r r ' 74 City of Brooklyn Center Debt Service Funds COMBINING BALANCE SHEET ' December 31, 2000 General Tax Special Obligation Increment Assessment Totals Bonds Bonds Bonds 2000 1999 ASSETS Cash and cash equivalents $622,661 $1,782,340 $1,075,431 $3,480,432 $4,544,919 Investments 153,313 189,246 917,002 1,259,561 1,123,361 ' Special assessments receivable: Deferred 3,545,518 3,545,518 3,452,530 Delinquent 10,619 19,469 30,088 18,654 , TOTAL ASSETS $786,593 $1,971,586 $5,557,420 $8,315,599 $9,139,464 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $63 $750 $2,571 $3,384 $1,639 Deferred revenue $10,619 3,564,987 3,575,606 3,471,184 Total Liabilities 10,682 750 3,567,558 3,578,990 3,472,823 Fund Balances: ' Reserved for debt service 775,911 1,970,836 1,989,862 4,736,609 5,666,641 Total Fund Balances 775,911 1,970,836 1,989,862 4,736,609 5,666,641 TOTAL LIABILITIES AND FUND BALANCES $786,593 $1,971,586 $5,557,420 $8,315,599 $9,139,464 75 City of Brooklyn Center Debt Service Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For,the Year Ended December 31, 2000 ' General Tax Special Obligation Increment Assessment Totals Bonds Bonds Bonds 2000 1999 Revenues Special assessments $994,839 $994,839 $690,538 Intergovernmental $291,245 291,245 308,310 Investment earnings 48,350 $21,126 71,801 141,277 137,511 Change in fair value of investments (8,493) (7,756) (33,245) (49,494) (32,598) Total Revenues 331,102 13,370 1,033,395 1,377,867 1,103,761 ' Expenditures Principal 2,155,000 1,280,000 535,000 3,970,000 2,085,000 Interest 454,986 595,554 231,972 1,282,512 1,373,614 Fiscal agent fees 1,366 1,933 10,127 13,426 13,930 Total Expenditures 2,611,352 1,877,487 777,099 5,265,938 3,472,544 (Deficiency) Excess of Revenues Over Expenditures (2,280,250) (1,864,117) 256,296 (3,888,071) (2,368,783) Other Financina Sources (Uses), Operating transfers in 2,329,553 1,920,000 258,486 4,508,039 2,921,765 Operating transfers out (1,550,000) (1,550,000) Total Other Financing Sources 779,553 1,920,000 258,486 2,958,039 2,921,765 (Deficiency) Excess of Revenues and Other Sources Over Expenditures and Other Uses (1,500,697) 55,883 514,782 (930,032) 552,982 Fund Balances January 1 2,276,608 1,914,953 1,475,080 5,666,641 5,113,659 Fund Balances December 31 $775,911 $1,970,836 $1,989,862 $4,736,609 $5,666,641 76 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 major capital 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. ' 77 P.1 City of Brooklyn Center Capital Projects Funds COMBINING BALANCE SHEET December 31, 2000 Municipal Capital State Aid Special Reserve Capital for Assessment Totals Emergency Improvements Construction Construction Fund Fund Fund Fund 2000 1999 AS SET S Cash and cash equivalents $262,097 $868,843 $105,567 $256,200 $1,492,707 $1,407,861 Investments 949,998 3,149,208 382,639 928,622 5,410,467 8,210,074 Accounts receivable 1,696 1,696 2,062 Special assessments: Deferred 232,599 232,599 392,727 Delinquent 37,342 37,342 87,817 Due from other funds 255,895 Due from other governments 607,291 285,615 892,906 364,251 Advance to other funds 1,000,000 593,069 1,593,069 1,669,412 TOTALASSETS $1,212,095 $5,018,051 $1,688,566 $1,742,074 $9,660,786 $12,390,099 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $146,596 $8,249 $218,346 $373,191 $830,468 Contracts payable 5,585 5,216 7,000 17,801 155,334 Accrued salaries and wages 5,508 Deferred revenue 98,490 269,942 368,432 844,795 Total Liabilities 152,181 111,955 495,288 759,424 1,836,105 Fund Balances: Reserved: Advances to other funds 1,000,000 593,069 1,593,069 1,669,412 Unreserved $1,212,095 3,865,870 983,542 1,246,786 7,308,293 8,884,582 Total Fund Balances 1,212,095 4,865,870 1,576,611 1,246,786 8,901,362 10,553,994 TOTAL LIABILITIES AND FUND BALANCES $1,212,095 $5,018,051 $1,688,566 $1,742,074 $9,660,786 $12,390,099 78 City of Brooklyn Center Capital Projects Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2000 Municipal Capital State Aid Special Reserve Capital for Assessment Emergency Improvements Construction Construction Totals Fund Fund Fund Fund 2000 1999 Revenues Special assessments $289,596 $289,596 $217,306 Intergovernmental $1,293,108 1,293,108 2,718,728 Investment earnings $73,644 $247,490 134,476 60,624 516,234 502,728 Change in fair value of investments (30,801) (61,378) (55,333) (26,512) (174,024) (288,853) Sale of property Miscellaneous 10,000 10,000 21,004 Total Revenues 42,843 196,112 1,372,251 323,708 1,934,914 3,170,913 Exaenditures Personal services 2,037 10,397 258,870 271,304 237,861 Supplies 214 296 510 11,869 Services and other charges 288,437 54,534 275,017 617,988 1,006,173 Capital outlay 970,818 2,233,546 1,477,577 4,681,941 9,060,651 Total Expenditures 1,261,506 2,298,477 2,011,760 5,571,743 10,316,554 Excess (Deficiency) of Revenues Over Expenditures 42,843 (1,065,394) (926,226) (1,688,052) (3,636,829) (7,145,641) Other Financina SourQQa Proceeds from sale of bonds 735,000 735,000 1,585,000 Operating transfers in 175,000 394,197 569,197 499,917 Total Other Financing Sources 175,000 1,129,197 1,304,197 2,084,917 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures 42,843 (890,394) (926,226) (558,855) (2,332,632) (5,060,724) Fund Balances January 1 1,169,252 5,341,264 2,502,837 1,540,641 10,553,994 14,914,718 Equity Transfers In 415,000 265,000 680,000 700,000 Fund Balances December 31 $1,212,095 $4,865,870 $1,576,611 $1,246,786 $8,901,362 $10,553,994 ' 79 S -3 City of Brooklyn Center Capital Improvements Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 2000 Project (Over) Under 2000 to Date Expended Project Appropriations Expenditures Expenditures Appropriations Central garage improvements (93 -19) $1,234,311 $2,104 $1,275,711 ($41,400) Civic Center Addition (99 -08) 3,239,960 52,144 114,895 3,125,065 East fire station project 1,106,000 100,122 1,053,562 52,438 West fire station project 2,539,000 386,730 3,141,910 (602,910) Police station project 4,345,000 485,427 5,202,963 (857,963) E. B. Heritage Center 2,500,000 23,606 2,477,200 22,800 00 Central Park improvement (99 -06) 131,500 12,517 142,432 (10,932) ° Park Improvements (99 -18) 65,600 14,895 64,236 1,364 Park shelter renovations (00 -18) 65,000 62,280 62,280 2,720 Lions Park improvements (99 -17) 30,200 1,602 33,429 (3,229) Park Lighting 2000 (00 -12) 22,000 21,388 21,388 612 West Palmer Tennis Court (00 -13) 35,000 31,387 31,387 3,613 Park Improvements (00 -14) 58,600 67,107 67,107 (8,507) Centerbrook Storage Bldg. 197 197 (197) Totals $15,372,171 $1,261,506 $13,688,697 $1,683,474 S-4 City of Brooklyn Center Municipal State Aid for Construction Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 2000 Project (Over) Under 2000 to Date Expended Project Appropriation Expenditures Expenditures Appropriations 69th Ave. Improvements (95 -05) $1,774,882 $3,055 $1,695,467 $79,415 53rd Avenue trail (99 -05) 245,912 12,241 209,212 36,700 Miscellaneous sidewalk & retaining wall replacements (99 -21) 50,405 26,308 50,668 (263) S.E. Neighborhood improvements (99 -01) 131,802 14,974 121,304 10,498 73rd Avenue improvements (00 -04) 199,018 194,655 194,684 4,334 0o Brooklyn Blvd. - 64th Ave. to 71st Ave. (99 -04) 2,086,580 1,433,153 1,735,924 350,656 Brooklyn Blvd. Enhancements (99 -16) 25,000 15,147 15,147 9,853 Garden City Central Street Improvements (00 -01) 300,800 472,059 472,059 (171,259) Palmer Lake Trails (00 -17) 100,000 2,620 2,620 97,380 Southwest Area Street Improvements (02 -01) 22,983 22,983 (22,983) Brooklyn Blvd. Landscaping (00 -21) 10,000 1,279 1,279 8,721 Camden & 66th Ave. N. (99 -10) 134,445 100,003 100,003 34,442 Totals $5,058,844 $2,298,477 $4,621,350 $437,494 S -5 City of Brooklyn Center Special Assessment Construction Fund PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS From Beginning to December 31, 2000 Project (Over) Under 2000 to Date Expended Project Appropriations Expenditures Expenditures Appropriations Logan, James and Knox Avenues improvements (96 -06) $270,236 $4,897 $248,558 $21,678 Diseased tree removals 41,822 41,822 (41,822) Reforestation of 2000 improvement projects 38,000 11,160 20,933 17,067 Reforestation of 2001 improvement projects 110 110 (110) Southeast neighborhood 1,403,776 107,606 1,371,689 32,087 00 73rd Avenue improvement (00 -04) 52,320 47,257 50,046 2,274 Garden City improvement (00 -01) 1,694,874 1,660,411 1,697,411 (2,537) Garden City North improvement (01 -01) 54,271 44,081 44,081 10,190 Azelia Avenue improvement (99 -20) 86,638 13,263 86,853 (215) Earle Brown Drive improvement (99 -14) 223,916 28,151 252,067 (28,151) Camden / 66th Avenue improvement (99 -10) 542,860 53,002 543,113 (253) Totals $4,366,891 $2,011,760 $4,356,683 $10,208 M ON M 111M M M M =111111 owl M M M M 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 Liquor 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 Heritaqe 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 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 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. Sanita Sewer Fund ry .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. 83 City f Brooklyn Center Y Y Enterprise Funds COMBINING BALANCE SHEET December 31, 2000 E. Brown ' Municipal Golf Heritage Liquor Course Center ASSETS Fund Fund Fund Current Assets: Cash and cash equivalents $81,492 $20,975 $42,271 Investments 279,065 74,395 151,585 Accounts receivable - net 1,075 339,366 Accrued revenue Special assessments receivable: Deferred Delinquent Due from other governments 163,991 Due from other funds Inventories 326,644 11,066 32,756 Prepaid expenses 12,244 3,450 Total Current Assets 864,511 106,436 569,428 Fixed Assets: ' Mains and lines Structures 222,598 317,090 11,318,307 Equipment 88,793 26,220 996,234 Land 1,391,711 1,493,300 Land improvements 77,450 388,985 311,391 1,812,471 14,196,826 Less: Accumulated Depreciation 56,747 160,334 3,345,594 Total Net Fixed Assets 254,644 1,652,137 10,851,232 Total Assets $1,119,155 $1,758,573 $11,420,660 LIABIL.ITIFS AND FUND EOUITY Current Liabilities: Accounts payable $119,211 $1,109 $749,797 Contracts payable Due to other funds Accrued salaries payable 15,708 1,586 22,638 Accrued vacation and sick pay 52,814 7,352 23,922 Accrued interest payable Current portion of long -term debt 50,000 Total Current Liabilities 187,733 60,047 796,357 Long -Term Liabilities: Advances from other funds 950,000 Other long term liabilities Bonds payable Total Long -term Liabilities 950,000 Fund Equity: Contributions 643,725 10,444,972 Retained earnings Reserved: Debt service Special assessments Unreserved 931,422 104,801 179,331 Total Fund Equity 931,422 748,526 10,624,303 Total Liabilities and Fund Equity $1,119,155 $1,758,573 $11,420,660 84 �I E1 Recycling Water Sanitary Storm & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund 2000 1999 $12,563 $482,121 $185,387 $824,809 $910,943 45,538 1,747,495 671,953 2,970,031 4,023,202 14,440 102,777 185,231 $73,238 716,127 761,604 26,288 155,105 318,577 149,155 649,125 634,099 142,477 4,022 24,898 171,397 156,420 21,776 52 21,828 13,833 163,991 14,039 84,636 84,636 26,815 397,281 441,342 107,124 122,818 125,143 98,829 2,763,202 1,472,294 247,343 6,122,043 7,080,625 ' 12,585,566 10,632,622 10,122,751 33,340,939 30,512,514 5,765,042 3,156,489 20,779,526 20,400,437 149,314 202,826 11,898 1,475,285 1,476,073 23,093 3,389 287,158 3,198,651 3,299,529 13,857 10,786 491,078 501,671 18,536,872 13,995,326 10,432,593 59,285,479 56,190,224 5,332,664 3,099,664 397,020 12,392,023 11,614,245 13,204,208 10,895,662 10,035,573 46,893,456 44,575,979 $98,829 $15,967,410 $12,367,956 $10,282,916 $53,015,499 $51,656,604 $1,250 $111,115 $130,817 $42,293 $1,155,592 $953,402 57,302 3,000 3,000 63,302 85,157 84,636 84,636 545,000 15,068 4,212 293 59,505 54,497 10,662 6,712 101,462 83,774 22,795 22,795 26,467 190,000 240,000 256,343 1,250 194,147 144,741 343,017 1,727,292 2,004,640 950,000 1,000,000 56,302 56,302 168,906 860,000 860,000 1,050,000 56,302 860,000 1,866,302 2,218,906 4,997,510 5,668,426 863,964 22,618,597 22,933,780 239,950 239,950 239,110 164,254 4,022 24,950 193,226 170,254 97,579 10,555,197 6,550,767 7,951,035 26,370,132 24,089,914 97,579 15,716,961 12,223,215 9,079,899 49,421,905 47,433,058 $98,829 $15,967,410 $12,367,956 $10,282,916 $53,015,499 $51,656,604 85 City of Brooklyn Center Enterprise Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 E. Brown >� Municipal Golf Heritage Liquor Course Center Fund Fund Fund Operating Revenues Sales and user fees $3,584,829 $359,511 $3,992,737 Cost of sales 2,734,318 36,677 533,428 Gross Margin 850,511 322,834 3,459,309 Operatina Exoenses Personal services 415,887 148,450 1,955,572 Supplies 20,989 20,196 230,784 Other services 99,258 44,372 481,383 , Insurance 9,538 8,010 30,504 Utilities 19,481 13,617 154,643 Rent 117,659 76,115 Depreciation 14,018 13,837 405,284 Total Operating Expenses 696,830 248,482 3,334,285 Operating Income (Loss) 153,681 74,352 125,024 Nonoperatina Exoenses( - or Revenues Investment earnings 30,929 6,555 Change in fair value of investments (12,738) (3,203) Special assessments Intergovernmental Other revenue 4,189 Interest and fiscal agent fees (515) (23,848) Loss on sale of fixed assets (30,989) Total Nonoperating Expenses( -) or Revenues (9,124) 3,352 (23,848) Income (Loss) Before Operating Transfers 144,557 77,704 101,176 Operating Transfers In Operating Transfers Out (75,000) Net Income (Loss) 69,557 77,704 101,176 Depreciation on contributed assets that reduces contributed capital 338,788 Retained Earnings (Deficits) Jan. 1 861,865 27,097 (260,633) Retained Earnings Dec. 31 $931,422 $104,801 $179,331 r 86 a Recycling Water Sanitary Storm & Refuse Utility Sewer Drainage Totals Fund Fund Fund Fund 2000 1999 $210,168 $1,348,221 $2,398,323 $1,074,619 $12,968,408 $12,355,755 3,304,423 3,285,487 210,168 1,348,221 2,398,323 1,074,619 9,663,985 9,070,268 314,651 120,051 100,000 3,054,611 2,942,972 138,493 11,128 475 422,065 363,390 214,770 348,149 1,546,918 51,062 2,785,912 2,861,174 119 8,433 5,962 2,646 65,212 54,980 121,326 23,985 333,052 322,062 193,774 236,172 400,358 213,401 153,206 1,200,104 1,065,311 214,889 1,331,410 1,921,445 307,389 8,054,730 7,846,061 (4,721) 16,811 476,878 767,230 1,609,255 1,224,207 4,556 142,820 90,309 275,169 298,676 (1,851) (39,259) (36,067) (93,118) (134,551) 39,775 314 313,068 353,157 291,475 1,092,809 6,086 10,275 7,454 (59,144) (83,507) (90,904) (30,989) 2,705 149,422 54,556 253,924 430,987 1,464,959 (2,016) 166,233 531,434 1,021,154 2,040,242 2,689,166 4,357 (75,000) (75,000) (2,016) 166,233 531,434 1,021,154 1,965,242 2,618,523 338,788 318,420 99,595 10,553,218 6,023,355 7,194,781 24,499,278 21,562,335 $97,579 $10,719,451 $6,554,789 $8,215,935 $26,803,308 $24,499,278 87 City of Brooklyn Center Enterprise Funds , COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2000 E. Brown Municipal Golf Heritage Recycling Liquor Course Center & Refuse Cash flows from operating_ activities, Fund Fund Fund Fund Operating income (loss) $153,681 $74,352 $125,024 ($4,721) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 14,018 13,837 405,284 Changes in assets and liabilities: Receivables (162, 876) 40,748 1,793 Inventories 28,144 705 702 Prepaid expenses (6,396) (895) Payables 18,732 (6,399) 311,739 250 Accrued expenses 13,943 971 754 Accrued interest payable Other nonoperating income 4,189 Net cash provided by (used for) operating activities 63,435 83,466 883,356 (2,678) Cash flows from noncapital financina activities: Proceeds from borrowings due to other funds Principal repayments on long term debt Principal repayments on advance (26,343) (50,000) (545,000) Interest paid on advance from other funds (515) Interest paid on due to other funds (23,848) Operating transfers in Operating transfers out (75,000) Net cash (used for) provided by noncapital financing activities (101,858) (50,000) (568,848) Cash flows from capital and related financina activities' Capital contributions 23,605 Acquisition and construction of capital assets (253,002) (5,313) (148,591) Proceeds of sale of fixed assets 221,241 Principal paid on revenue bonds Interest paid on revenue bonds Net cash used for capital and related financing activities (31,761) (5,313) (124,986) Cash flows from investing activities: Investments purchased (201,333) (53,673) (109,362) (32,853) Investments sold or matured 257,850 30,207. (42,224) 35,037 Interest on investments 30,929 6,555 4,556 Net cash provided by (used for) investing activities 87,446 (16,911) (151,586) 6,740 Net increase (decrease) in cash and cash equivalents 17,262 11,242 37,936 4,062 Cash and cash equivalents at beginning of the year 64,230 9,733 4,335 8,501 Cash and cash equivalents at end of the year $81,492 $20,975 $42,271 $12,563 Non cash items: Change in fair value of investments ($12,738) ($3,203) ($1,851) 88 Water Sanitary Storm utility Sewer Drainage Totals Fund Fund Fund 2000 1999 $16,811 $476,878 $767,230 $1,609,255 $1,224,207 400,358 213,401 153,206 1,200,104 1,065,311 (122,870) 12,978 3,119 (227,108) (82,357) 14,510 44,061 (83,669) 9,616 2,325 936 (27,653) 51,545 (224,177) 124,037 396,561 5,646 1,091 294 22,699 (40,016) (3,675) (3,675) (3,364) 1 45,861 314 313,068 363,432 1,391,738 332,663 765,823 1,009,065 3,135,130 3,869,347 84,636 84,636 160,000 (56,302) (56,302) (56,302) ' (621,343) (79,969) (515) (2,593) (23,848) (23,233) ' 4,357 (75,000) (75,000) ' (56,302) 84,636 (692,372) (72,740) 23,605 1,234,880 (972,460) (1,295,282) (1,095,164) (3,769,812) (4,980,286) 221,241 (180,000) (180,000) (170,000) (59,144) (59,144) (65,078) (972,460) (1,295,282) (1,334,308) (3,764,110) (3,980,484) (1,260,737) (484,783) (2,142,741) (2,370,458) 1,883,034 914,262 24,624 3,102,790 2,052,871 142,820 90,309 275,169 298,676 765,117 519,788 24,624 1,235,218 (18,911) 69,018 (9,671) (215,983) (86,134) (202,788) 413,103 195,058 215,983 910,943 1,113,731 $482,121 $185,387 $0 $824,809 $910,943 ($39,259) ($36,067) 89 ($93,118) ($134,551) 1 City of Brooklyn Center Municipal Liquor Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 2000 1999 Sales Liquor $1,168,994 $1,137,459 Wine 373,666 346,560 Beer 1,841,592 1,852,088 Soft drinks 59,319 65,162 Other merchandise 141,258 159,344 Total Sales 3,584,829 3,560,613 r Less: Cost of Sales 2,734,318 2,694,622 Gross Margin 850,511 865,991 Operating Expenses ' Personal services 415,887 387,260 Supplies 20,989 16,133 Other services 99,258 85,923 Insurance 9,538 8,146 Utilities 19,481 25,433 Rent 117,659 69,922 , Depreciation 14,018 39,821 Total Operating Expenses 696,830 632,638 Operating Income 153,681 233,353 operating Revenues (Expenses) Investment earnings 30,929 18,910 Change in fair value of investments (12,738) (7,266) , Other revenue 4,189 6,620 Interest and fiscal agent fees (515) (2,593) Loss on sale of fixed assets (30,989) Total Nonoperating (Expenses) or Revenues (9,124) 15,671 Operating Transfers to Other Funds 75,000 75,000 Net Income 69,557 174,024 Retained Earnings January 1 861,865 687,841 Retained Earnings December 31 $931,422 $861,865 90 I City of Brooklyn Center E -5 Golf Course Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 2000 1999 Operating Revenues Green fees $272,907 $269,653 Rentals 12,509 12,791 Leagues 12,522 12,125 Golf lessons 5,555 2,918 Concessions 33,214 30,010 Merchandise 20,378 24,691 Pop machine 1,362 1,599 Miscellaneous 1,064 1,747 Total Operating Revenues 359,511 355,534 Less: Cost of Sales 36,677 31,860 Gross Margin 322,834 323,674 Operatina Expenses Personal services 148,450 145,159 Supplies 20,196 25,703 Other services 44,372 56,704 Insurance 8,010 6,877 Utilities 13,617 13,320 Depreciation 13,837 13,847 Total Operating Expenses 248,482 261,610 Operating Income 74,352 62,064 Nonoperatina Revenues ( Exoenses) Investment earnings 6,555 4,270 Change in fair value of investments (3,203) (1,672) Total Nonoperating Revenues 3,352 2,598 Net Income 77,704 64,662 Retained Earnings (Deficit) January 1 27,097 (37,565) Retained Earnings December 31 $104,801 $27,097 91 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, 2000 ■ 2000 1999 Operating Revenues Conventions $1,022,997 $811,202 Catering 2,702,041 2,418,368 Inn on the Farm 207,561 209,584 Office Rents 60,138 51,538 Total Operating Revenues 3,992,737 3,490,692 Less: Cost of Sales 533,428 559,005 Gross Margin 3,459,309 2,931,687 Operatino Expenses Personal services 1,955,572 1,902,030 Supplies 230,784 196,100 Other services 481,383 539,705 Insurance 30,504 27,125 Utilities 154,643 149,679 Rent 76,115 166,250 Depreciation 4 5 284 376 209 p 0 , Total Operating Expenses 3,334,285 3,357,098 Operating Income (Loss) 125,024 (425,411) Nonoperatino Expenses Interest and fiscal agent fees (23,848) (23,233) Total Nonoperating Expenses (23,848) (23,233) Operating Transfers from Other Funds 4,357 Net Income (Loss) 101,176 (444,287) Depreciation on contributed assets that reduces contributed capital 338,788 318,420 Retained Earnings (Deficit) January 1 (260,633) (134,766) Retained Earnings Deficit December 31 $179,331 ($260,633) r 92 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, 2000 ' 2000 1999 Or)eratina Revenues Recycling service fees $210,168 $210,764 Or)eratina Expenses ' Other services 214,770 213,297 Insurance 119 85 Total Operating Expenses 214,889 213,382 ' Operating Loss (4,721) (2,618) Nonoperatina Revenues (Expenses) Investment earnings 4,556 4,189 Change in fair value of investments (1,851) (1,918) ' Total Nonoperating Revenues 2,705 2,271 Net Loss (2,016) (347) Retained Earnings January 1 99,595 99,942 ' Retained Earnings December 31 $97,579 $99,595 93 ' City of Brooklyn Center EE =8 Water Utility Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 2000 1999 , Operatina Revenues Service to customers $1,219,961 $1,211,746 Sale of meters 2,411 25,241 Penalties 73,174 71,717 Rentals 52,675 45,475 Total Operating Revenues 1,348,221 1,354,179 Operating Expenses ' Personal services 314,651 291,786 Supplies 138,493 114,297 , Contractual services 348,149 291,688 Insurance 8,433 6,406 Utilities 121,326 109,012 Depreciation 400,358 356,572 Total Operating Expenses 1,331,410 1,169,761 Operating Income 16,811 184,418 Nonoperating Revenues (Expenses) Investment earnings 142,820 148,205 Change in fair value of investments (39,259) (72,990) , Special assessments (for hookups & delinquencies) 39,775 22,415 Other 6,086 460 ' Total Nonoperating Revenues 149,422 98,090 Net Income 2 282 508 166, 33 , Retained Earnings January 1 10,553,218 10,270,710 , Retained Earnings December 31 $10,719,451 $10,553,218 , 94 ' City of Brooklyn Center EE =9 Sanitary Sewer Fund ' COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS ' For the Year Ended December 31, 2000 ' Operatina Revenues 2000 1999 Service to customers $2,398,323 $2,384,106 Operatina Expenses Personal services 120,051 116,939 Supplies 11,128 11,157 Contractual services 198,209 187,113 Metropolitan Council Environmental Services 1,348,709 1,431,799 Insurance 5,962 4,522 Utilities 23,985 24,618 Depreciation 213,401 203,019 ' Total Operating Expenses 1,921,445 1,979,167 ' Operating Income 476,878 404,939 Nonoperatina Revenues (Expenses) Investment earnings 90,309 85,103 Change in fair value of investments (36,067) (38,885) Special assessments for hookups and delinquencies 314 338 Total Nonoperating Revenues 54,556 46,556 Net Income 531,434 451,495 ' Retained Earnings January 1 6,023,355 5,571,860 ' Retained Earnings December 31 $6,554,789 $6,023,355 i 95 City of Brooklyn Center E -10 Storm Drainage Fund COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS For the Year Ended December 31, 2000 2000 1999 Operatina Revenues Service to customers $1,074,619 $999,867 Operating Expenses Personal services 100,000 99,798 ' Supplies 475 Contractual services 51,062 54,945 , Insurance 2,646 1,819 Depreciation 153,206 75,843 Total Operating Expenses 307,389 232,405 Operating Income 767 230 767,462 p g , Nonoperating Revenues (Expenses) Investment earnings 37,999 Change in fair value of investments (11,820) , Special assessments 310,588 265,626 Special assessments interest 2,480 3,096 Intergovernmental 1,092,809 Other revenue 374 Interest and fiscal agent fees (59,144) (65,078) Total Nonoperating Revenues 253,924 1,323,006 Net Income 1,021,154 2,090,468 , Retained Earnings January 1 7,194,781 5,104,313 , Retained Earnings December 31 $8,215,935 $7,194,781 i 96 1 1 City of Brooklyn Center, Minnesota 1 INTERNAL SERVICE FUNDS r 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: r Public Employees Retirement Fund: This fund provides certain health care insurance benefits for City employees who retire before age 65. Substantially all of the City's full -time 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. r 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. r r r r . r r r r 97 F -1 ' City of Brooklyn Center ' Internal Service Funds COMBINING BALANCE SHEET December 31, 2000 , Public Employees Central , Retirement Garage Totals ASSETS Fund Fund 2000 1999 Current Assets: ' Cash and cash equivalents $307,113 $800,568 $1,107,681 $745,358 Investments 1,113,163 2,901,736 4,014,899 4,346,626 Accounts receivable 3,073 4,941 8,014 21,493 ' Inventories 11,273 11,273 12,572 Total Current Assets 1,423,349 3,718,518 5,141,867 5,126,049 ' Fixed Assets: Equipment 5,727,814 5,727,814 5,583,067 Less: Accumulated depreciation 2,738,853 2,738,853 2,556,258 Total net fixed assets 2,988,961 2,988,961 3,026,809 TOTAL ASSETS $1,423,349 $6,707,479 $8,130,828 $8,152,858 LIABILITIES AND FUND EQUITY ' Current Liabilities: Accounts payable $106 $16,018 $16,124 $29,186 Accrued salaries payable 9,750 9,750 8,981 Accrued vacation and sick pay 29,515 29,515 28,522 Accrued health insurance liability 1,423,243 1,423,243 1,369,891 Total Current Liabilities 1,423,349 55,283 1,478,632 1,436,580 Fund Equity: ' Contributions: General Fund 823,034 823,034 869,689 Debt Service Funds 1,156,959 1,156,959 1,222,544 ' Capital Projects Funds 6,999 6,999 7,395 Enterprise Funds 509,678 509,678 538,570 General Fixed Asset Account Group 507,556 507,556 536,328 Total Contributions 3,004,226 3,004,226 3,174,526 Retained Earnings: ' Unreserved 3,647,970 3,647,970 3,541,752 Total Fund Equity 6,652,196 6,652,196 6,716,278 ' TOTAL LIABILITIES AND FUND EQUITY $1,423,349 $6,707,479 $8,130,828 $8,152,858 98 ' City of Brooklyn Center E--2 ' Internal Service Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS ' For the Year Ended December 31, 2000 ' Public Employees Central Retirement Garage Totals ' Fund Fund 2000 1999 Ooeratina Revenues Billings to departments $1,063,756 $1,063,756 $967,480 Sales 70,121 70,121 69,946 Total Operating Revenues 1,133,877 1,133,877 1,037,426 Operatina Expenses ' Personal services $71,067 280,468 351,535 425,870 Supplies 228,422 228,422 191,104 Other services 62,575 62,575 57,008 ' Insurance 48,716 48,716 32,672 Utilities 3,205 3,205 3,559 Depreciation 684,448 684,448 506,396 ' Total Operating Expenses 71,067 1,307,834 1,378,901 1,216,609 Operating Loss (71,067) (173,957) (245,024) (179,183) Nonooeratina Revenues ( Exoenses) Investment earnings 87,115 218,343 305,458 279,611 Change in fair value of investments (38,170) (86,346) (124,516) (127,107) ' Total Nonoperating Revenues 48,945 131,997 180,942 152,504 Loss Before Operating Transfers (22,122) (41,960) (64,082) (26,679) Operating Transfers In 120,000 ' Net (Loss) Income (22,122) (41,960) (64,082) 93,321 Depreciation on contributed assets that ' reduces contributed capital 170,300 170,300 145,827 Retained Earnings January 1 22,122 3,519,630 3,541,752 3,302,604 Retained Earnings December 31 $0 $3,647,970 $3,647,970 $3,541,752 99 F_3 City of Brooklyn Center Internal Service Funds COMBINING STATEMENT OF CASH FLOWS ' For the Year Ended December 31, 2000 Employee Central , Retirement Garage Totals Fund Fund 2000 1999 Cash flows from operating activities: Operating loss ($71,067) ($173,957) ($245,024) ($179,183) ' Adjustments to reconcile operating loss to net cash (used for) provided by operating activities: Depreciation 684,448 684,448 506,396 Changes in assets and liabilities: Accounts receivable (1,748) 15,229 13,481 (14,696) ' Inventories 1,299 1,299 (7,987) Accounts payable (1,243) (11,819) (13,062) (51,035) Accrued salaries and leave 1,762 1,762 1,271 Accrued health insurance liability 53,352 53,352 140,558 ' Net cash (used for) provided by operating activities (20,706) 516,962 496,256 395,324 Cash flows from noncapital financina activities: ' Operating transfers in 120,000 Net cash provided by noncapital ' financing activities 120,000 Cash flows from capital and related ' financing activities: Acquisition of fixed assets (646,600) (646,600) (786,750) Net cash used for capital and related financing activities (646,600) (646,600) (786,750) Cash flows (used for) provided by investina activities: Investments purchased (803,096) (2,093,468) (2,896,564) (2,561,018) Investments sold or matured 840,035 2,263,738 3,103,773 2,326,995 Interest on investments 87,115 218,343 305,458 279,611 Net cash provided by investing activities 124,054 388,613 512,667 45,588 , Net increase (decrease) in cash and cash equivalents 103,348 258,975. 362,323 (225,838) Cash and cash equivalents at beginning of the year 203,765 541,593 745,358 971,196 ' Cash and cash equivalents at end of the year $307,113 $800,568 $1,107,681 $745,358 ' Non cash items: Change in fair value of investments ($38,170) ($86,346) ($124,516) ($127,107) 100 City of Brooklyn Center, Minnesota GENERAL FIXED ASSET ACCOUNT GROUP The General Fixed Asset Account Group was established to account for the City's fixed assets which are not accounted for in an enterprise fund, and which are tangible in nature, have a life longer than the current fiscal year, and have a significant value. Depreciation is not recorded on those assets. 101 S -6 City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE For the Year Ended December 31, 2000 January 1, December 31, 2000 2000 Balance Acquisitions Disposals Balance Investments in General Fixed Assets. Land $2,473,864 $1,077,766 $3,551,630 Buildings and improvements 14,716,724 1,077,663 $107,484 15,686,903 Park improvements 3,600,241 116,457 15,523 3,701,175 Furniture 1,360,475 97,727 194,634 1,263,568 Departmental equipment 1,210,110 184,565 272,976 1,121,699 Total Investments in General Fixed Assets $23,361,414 $2,554,178 $590,617 $25,324,975 Sources of Investments General Indebtedness $9,378,707 $1,472,280 $237,110 $10,613,877 General Fund reverwes 5,828,367 875,334 147,351 6,556,350 Liquor store income 150,337 70,000 3,801 216,536 Contributions 218,576 31,892 5,526 244,942 Capital projects funds 7,055,583 71,251 178,377 6,948,457 Federal grants 729,844 33,421 18,452 744,813 Total Sources of Investments $23,361,414 $2,554,178 $590,617 $25,324,975 i 102 S = 7 City of Brooklyn Center SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY December 31, 2000 Buildings and Park Furniture and Function Land Improvements Improvements Equipment Total General government $1,077,766 $526,551 $1,604,317 Government buildings 406,070 $14,838,804 $367,466 432,755 16,045,095 Public safety 2,500 129,179 862,323 994,002 Public works 193,399 193,399 Recreation 13,821 220,158 233,979 Parks 2,065,294 705,099 3,333,709 150,081 6,254,183 Totals $3,551,630 $15,686,903 $3,701,175 $2,385,267 $25,324,975 103 S-$ City of Brooklyn Center SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For the Year Ended December 31, 2000 General Fixed General Fixed Assets Assets January 1, December 31, Function 2000 Additions Deductions 2000 General government $661,678 $1,082,012 $139,373 $1,604,317 Government buildings 15,065,020 1,021,114 41,039 16,045,095 Public safety 1,144,526 144,542 295,066 994,002 Public works 176,114 19,453 2,168 193,399 Recreation 239,700 25,282 31,003 233,979 Parks 6,074,376 261,775 81,968 6,254,183 Totals $23,361,414 $2,554,178 $590,617 $25,324,975 9 i 104 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. I ' , � 105 City of Brooklyn Center COMPARATIVE STATEMENT OF GENERAL LONG -TERM DEBT December 31, 2000 1 Decembe r 31, 2000 1999 Amounts Available and to be Provided. Amounts Available in Debt Service Funds $4,736,609 $5,666,641 Amounts to be Provided: From future property tax levies 6,419,909 6,885,867 From future gas tax allocations 1,585,000 1,790,000 From future tax increments 7,169,163 8,505,047 From future special assessments 4,130,139 4,444, 920 Total Amounts Available and to be Provided $24,040,820 $27,292,475 General Lona -Term Debt Payable General obligation bonds $8,760,000 $10,915,000 Other long term liabilities 20,820 37,475 Tax increment bonds 9,140,000 10,420,000 General obligation special assessment bonds with governmental commitment 6,120,000 5,920,000 Total General Long -Term Debt $24,040,820 $27,292,475 106 H City of Brooklyn Center SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY December 31, 2000 Total Debt General Obligation Bonds Tax Increment Bonds Special Assessment Bonds Service Requirements Year Principal Interest Principal Interest Principal Interest Principal Interest 2001 1655,000 1377,651 11,450,000 1519,409 1700,000 1252,563 12,805,000 $1,149,623 2002 680,000 350,749 1,540,000 433,892 780,000 231,903 3,000,000 1,016,544 2003 705,000 322,356 1,645,000 340,413 785,000 197,309 3,135,000 860,078 2004 740,000 292,318 1,775,000 237,302 780,000 161,897 3,295,000 691,517 2005 775,000 260,374 360,000 171,123 780,000 125,773 1,915,000 557,270 2006 810,000 226,412 360,000 147,362 680,000 91,717 1,850,000 465,491 2007 540,000 196,640 385,000 122,585 590,000 62,115 1,515,000 381,340 2008 565,000 171,219 385,000 96,694 425,000 38,545 1,375,000 306,458 2009 595,000 144,100 400,000 70,200 320,000 21,325 1,315,000 235,625 2010 625,000 115,274 415,000 42,694 215,000 8,543 1,255,000 166,511 2011 655,000 84,710 425,000 14,344 65,000 1,609 1,145,000 100,663 2012 690,000 52,257 690,000 52,257 2013 725,000 17,762 725,000 17,762 $8,760,000 $2,611,822 $9,140,000 $2,196,018 $6,120,000 $1,193,299 $24,020,000 $6,001,139 107 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. 108 I 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 1991 $1,869,394 $3,950,862 $1,964,441 $104,706 $1,881,910 $177,179 $414,149 ($427,200) $9,935,441 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 0 ' 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 Note: Table includes General Fund only. Source: City Finance Department records 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 1991 $4,274,089 $311,751 $2,926,570 $881,213 $202,090 $360,800 $877,477 $9,833,990 1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351 1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602 1994 5,703,773 317,620 3,443,247 825,959 113,573 241,570 100,000 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 I 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 Note: Table includes General Fund only. Source: City Finance Department records 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 1991 $4,670,606 $4,478,115 95.88% $79,443 $4,557,558 97.58% $249,882 5.35% 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% * Total tax levy is net of Homestead and Agricultural Credit Aid. Source: City Finance Department records TABLE 4 City of Brooklyn Center ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY Last Ten Fiscal Years (Unaudited) 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Population (1) 28,887 28,558 28,533 28,484 28,463 28,502 28,515 28,535 28,535 29,172 Real Property Assessed value Tax (2) Tax Tax Tax Tax Tax Tax Tax Tax Tax City: Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity Residential $9,730,898 $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 Non - residential 16,305,868 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 Area -wide allocation (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) (586,003) 226,267 537,406 1,504,330 746,438 24,651,830 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 Less Tax Increment District 1,315,724 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 Total assessed value 23,336,106 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 Estimated Market Value 1,016,754,000 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 1,311,055,600i� Personal Property Assessed value 539,121 543,237 549,751 622,500 622,500 573,984 502,668 452,849 437,707 452,680 Estimated market value 10,564,700 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 Total Taxable Property Assessed value (2) $23,875,227 $22,825,696 $21,563,017 $21,277,190 $21,317,771 _$20,815,317 _ $19,329,196 _ $18,903,047 $20,387,445 _ $20,924,326_ Estimated market value $1,027,318,700 $1,012,179,300 $990,355,200 _ $973,201,300 _$975,344,000 $988,593,300 $1,022,736,700 $1,098,611,900 $1,177,854,400 $1,324,649,100 Assessed Value as a percent of Estimated Market Value 2.32% 2.26% 2,18% 2.19% 2 19 % 2.11% 1.89% 1.72% 1.73% 1.58 Per Capita Valuations Assessed Value $827 $799 $756 $747 $749 $730 $678 $662 $714 $717 Estimated Market Value $35,563 $35,443 $34,709 $34,167 $34,267 $34,685 $35,867 $38,501 $41,278 $45,408 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. TABLE 5 City of Brooklyn Center DIRECT AND OVERLAPPING TAX RATES 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 1991 19.208 1.046 46.207 58.643 55.540 51.779 37.479 103.940 116.376 113.273 108.466 1992 20.922 0.513 54.696 65.766 58.723 56.525 40.888 117.019 128.089 121.046 118.335 1993 23.969 1.095 67.008 64.948 61.807 63.717 42.457 134.529 132.469 129.328 130.143 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 64.387 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 w 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 1991 $4,670,606 $234,927 $4,169,240 $3,266,615 $4,365,729 $1,207,395 $8,992,605 $26,907,117 1992 5,072,385 123,029 4,596,776 3,516,409 4,444,416 1,293,144 8,344,678 27,390,837 1993 5,491,707 218,460 5,173,925 3,289,896 4,842,750 1,354,534 8,877,060 29,248,332 1994 5,857,342 166,681 4,175,027 3,472,013 4,526,288 1,287,264 9,384,582 28,869,197 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 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. (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 $2,223,869 in 2000. 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 1991 $612,744 $595,362 97.16% $23,135 $618,497 100.94% 1992 558,265 533,439 95.55% 13,801 547,240 98.03% 1993 488,163 469,814 96.24% 21,188 491,002 100.58% i 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% I 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% 53,786 915,674 101.69% Source: City Finance Department records 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 1991 28,887 $23,875,227 $610,000 $486,205 $123,795 0.52% 4.29 1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79) 1993 28,533 21,563,017 - - - 0.00% - 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 Source: City Finance Department and Hennepin County records ' (1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds. 115 r Table 8 r City of Brooklyn Center COMPUTATION OF LEGAL DEBT MARGIN December 31, 2000 (Unaudited) Market Value $1,324,649,100 r Debt limit, 2% of market value 26,492,982 Total bonded debt 25,070,000 Deductions (See Note 6): Bonds: 1. Special Assessment Bonds 6,120,000 2. State Aid Street Bonds 1,585,000 3. Tax Increment Bonds 9,140,000 4. Utility Revenue Bonds 1,050,000 Total Deductions 17,895,000 Total Debt Applicable to Debt Limit 7,175,000 Legal Debt Margin, December 31, 2000 $19,317,982 Source: City Finance and Assessing Department records r r r 116 i TABLE 9 City of Brooklyn Center COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 2000 (Unaudited) City's Share Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount Direct Debt: City of Brooklyn Center (1) $7,175,000 $725,930 $6,449,070 100.0% $6,449,070 Overlapping Debt: School Districts: No. 281 Robbinsdale 58,900,000 2,950,525 55,949,475 6.10% 3,412,918 No.11 Anoka 123,664,157 6,861,267 116,802,890 1.32% 1,541,798 No.279 Osseo 171,145,000 4,121,429 167,023,571 5.31% 8,868,952 No. 286 Earl Brown 3,560,000 325,000 3,235,000 100.00% 3,235,000 Metropolitan Council 146,040,645 31,037,000 115,003,645 0.84% 966,031 Hennepin County 219,170;000 3,141,854 216,028,146 1.52% 3,283,628 Hennepin County Park Reserve District 15,920,000 3,893,664 12,026,336 2.00% 240,527 Total Overlaoaina Debt 738,399,802 52,330,739 686,069,063 21,548,853 Total Direct and Overlapping Debt $745,574,802 $53,056,669 $692,518,133 $27,997,923 Direct Overlapping Comparative Net Debt Ratios Charaeable to Citv Total Debt Debt Debt to tax capacity value $20,924,326 133.81% 30.82% 102.98% Debt to market value $1,324,649,100 2.11% 0.49% 1.63% Per capita debt, population 29,172 $959.75 $221.07 $738.68 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. ■w � � r � riw � � � r r �r � +� � � ors � � I TABLE 10 City of Brooklyn Center 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 p p p 1991 $940,000 $746,401 $1,686,401 $9,935,441 16.97% 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% 2000 3,970,000 1,282,512 5,252,512 13,825,030 37.99% Source: City Finance Department records (1) Amounts for 1996 are higher because of the defeasance of the Tax Increment Bonds of 1985. 118 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 Utility Fund 1991 $703,422 $390,421 $1,093,843 $697,108 $396,735 $45,000 $3,695 $48,695 8.15 :1 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 N/A 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 Storm Drainaa_e Fund 1991 $374,040 $2,628 $376,668 $164,767 $211,901 $0 $0 $0 N/A 1992 494,456 14,030 508,486 207,427 301,059 0 0 0 N/A 1993 639,837 28,138 667,975 160,044 507,931 0 0 0 N/A 1994 685,011 39,930 724,941 211,425 513,516 0 30,208 30,208 17.00 :1 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 Source: City Finance Department records (1) Excludes depreciation and interest on bonds. 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 1991 466 $8,800,980 $4,719,147 7 $450,745 $339,358,500 $677,299,800 $87,479,168 I 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 0 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 Source: City Finance, Assessing and Community Development Department records TABLE 13 City of Brooklyn Center PRINCIPAL TAXPAYERS December 31, 2000 (Unaudited) Percentage 2000 of Total Market City Market Taxpayers Type of Business Valuation Value Talisman Brookdale, LLC Shopping Center $37,170,000 2.81% Medtronics Industrial 27,390,000 2.07% Target Stores Retail 21,040,000 1.59% BCC Associates, LLC /Reliastar Office 14,405,100 1.09% TLN LA NEL Apartment 11,070,000 0.84% Hennepin County Hotel Association Hotel 10,540,000 0.80% Brookdale Corner, LLC Retail 8,940,000 0.67% Sears Roebuck and Co. Department Store 8,880,000 0.67% GE Capital Industrial 8,850,000 0.67% Twin Lakes II, LLC Industrial 7,705,000 0.58% Total Market Value $155,990,100 11.78% TOTAL CITY MARKET VALUE $1,324,649,100 Source: City Assessing Department records 121 , City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued next page) Effective January 1, 2001 (Unaudited) Policy Period TVDe of Coverage and Details From To Liability Limits (1) I. Statutory Liabilit to Employees a. Workers' Compensation 04 -01 -01 04 -01 -02 Statutory ' (participant in the League of Minnesota Cities Insurance Trust Self - Insured Workers' Compensation Program) f II. Liability to the Publir, ' a. Comprehensive general liability includes the following additional coverages: (a) All employees as additional insureds (b) Personal injury coverage to include false arrest, libel, slander, wrongful entry or eviction, or invasion of right of privacy. (c) Broad contractual liability (d) Products liability (e) Public Officials' liability (1) Bodily injury 04 -01 -01 04 -01 -02 $1,000,000 combined single limit (2) Property damage 04 -01 -01 04 -01 -02 $1,000,000 combined single limit (3) Personal injury 04 -01 -01 04 -01 -02 $1,000,000 combined single limit ' b. Automobile liability, comprehensive 04 -01 -01 04 -01 -02 (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 -01 01 -01 -02 $1,000,000 each common cause d. Golf Course and Central Park 01 -01 -01 01 -01 -02 $1,000,000 each common liquor liability cause e. Personal accident, Volunteers 01 -01 -01 01 -01 -02 $100,000 accidental death $400 /week short-term disability $1,000 medical ' (1) Final liability limits for 2001 have not been finalized. 122 City of Brooklyn Center Table 14 SCHEDULE OF INSURANCE COVERAGE (Continued from prior page) Effective January 1, 2001 (Unaudited) Buildings, Structures, Policy Period and Contents (Replacement Type of Coverage and Details From To Cost) III. Insurance on City Property 04 -01 -01 04 -01 -02 , 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 -01 04 -01 -02 $5,000,000 per accident C. Automotive physical damage 04 -01 -01 04 -01 -02 (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 (1) Final liability limits for 2001 have not been finalized. , 123 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 1991 28,810 4.6% 2.3% 807 1,680 521 1,327 1992 28,558 4.4% 1.4% 671 1,178 526 1,709 1993 28,533 4.3% 2.7% 691 1,106 540 1,685 1994 28,484 2.6% 2.7% 661 1,071 577 1,681 1995 28,463 2.9% 2.8% 664 1,113 567 1,645 1996 28,502 4.0% 3.3% 670 1,109 549 1,672 ' 1997 28,515 3.3% 2.3% 680 1,111 586 1,701 1998 28,535 2.5% 1.9% 731 1,756 778 1,701 1999 28,535 2.2% 3.2% 776 1,791 800 1,708 2000 29,172 3.0% 4.2% 740 1,851 925 1,284 (1) Source: Metropolitan Council ' (2) Source: Minnesota Department of Economic Security (3) Twin Cities metro area average for year (4) School enrollment data was supplied by the respective school districts; the numbers reflect the number of Brooklyn Center students enrolled in the respective districts. r 124 TABLE 16 City of Brooklyn Center (Continued MISCELLANEOUS STATISTICAL FACTS next page) December 31, 2000 (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, 2000 Authorized regular full -time 166 Temporary or part-time 200 Total 366 Fire protection: Number of stations 2 Number of full -time employees 1 Number of volunteer firefighters 28 Police protection: ' Number of stations 1 Number of sworn police off=icers 43 Number of other full -time employees 17 Number of part-time employees 8 125 I City of Brooklyn Center TABLE 16 MISCELLANEOUS STATISTICAL FACTS (Continued from December 31, 2000 prior page) (Unaudited) Parks and Recreation: Park property totals 527 acres developed to serve a wide variety of recreational interests. Area include playlots, playgrounds, playfields, trails, nature areas and an arboretum. Playgrounds 19 Park shelters 12 Picnic shelters 7 Ice skating rinks 13 ' Hockey rinks 6 Softball diamonds 26 Baseball diamonds 4 ' Tennis courts 16 Basketball / volleyball courts 18 ' Municipal water plant: Number of connections 8,943 Average daily consumption in gallons 3,715,142 ' Peak daily consumption in gallons 7,869,000 Plant capacity - gallons per day 17,652,000 Miles of water mains 114 Number of fire hydrants 969 Number of wells 9 Number of elevated reservoirs 3 ' Storage capacity in gallons 3,000,000 Water rate per thousand gallons $0.94 Municipal sewer plant: Number of connections 8,774 Miles of sanitary sewer 105.51 Daily disposal capacity in gallons 10,938,240 ' Number of lift stations 10 Residential rate per quarter $47.50 Municipal liquor stores (Off- sale): Number of leased stores 2 2000 sales $3,584,828 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% 126 L