HomeMy WebLinkAbout2000 06-19 CCP Joint Work Session AGENDA
CITY COUNCIL WORK SESSION
JOINT METING WITH FINANCIAL COMMISSION
Council Chambers
June 19, 2000
7:00 p.m.
1. Mayor Call to Order Joint Meeting with Financial Commission
2. Presentation by Auditor, Deloitte & Touche LLP
3. Adjourn*
* There will be a Financial Commission meeting following the close of the
joint City Council/Financial Commission meeting if time permits. If there
isn't time on June 19th, then the Financial Commission will meet on June 20,
2000, at 7:00 p.m. in Conference Room B.
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director
DATE: June 1, 2000
RE: RESPONSES TO THE AUDITOR'S MANAGEMENT LETTER
At the June 19, 2000 City Council work session, Cliff Hoffman of Deloitte & Touche will
make a presentation on the audit of city operations for the year 1999. He will review
several reports, including a Management Letter which makes recommendations regarding
administrative and operating issues. The City Council will be asked to formally accept the
Comprehensive Annual Financial Report and related reports at the June 26, 2000 City
Council meeting. This memo provides the Management Responses to the Auditor' s
Management Letter.
ACCRUAL FOR POST - EMPLOYMENT BENEFITS:
The staff does not recommend that the City do an actuarial valuation of the post -
employment medical benefits based upon the cost of the study verses the benefits to be
derived from the study. Current methods of estimating the liability are conservative.
While the estimate isn't as precise as an actuarial valuation, it should be sufficient to
monitor the situation.
FIXED ASSET SYSTEM UPGRADE:
It is recognized that the current level of resources in the M.I.S. Department are stretched
to meet the needs of City departments. Increasing those resources is a budgetary issue to
be weighted against all other City needs. LOGIS is in the process of converting to JD
Edwards software which includes fixed asset software. Once the City has converted to the
financial, payroll, and human resources modules of JD Edwards, it will be P ossible to
evaluate the fixed assets module. Conversion to LOGIS would relieve the City's M.I.S.
Department from supporting fixed assets.
•
SERVICE AUDITORS' REPORT:
This would be an audit of LOGIS' internal controls. LOGIS had this done about five years
ago and it may be beneficial to do it again after the conversion to the JD Edwards software
is complete. This recommendation will be referred to LOGIS for a decision by the LOGIS
Board of Directors.
SEGREGATION OF DUTIES - UTILITY BILLING:
Setting up a lock -box service has been a goal of the Finance Department for a couple of
years. It can most efficiently and effectively be accomplished if done in cooperation with
other LOGIS cities. Building a consensus to do this on a cooperative basis has been
elusive. The Finance Department will again seek the cooperation of the other cities or
proceed with procuring the service alone.
FINANCIAL REPORTING MODEL:
This requirement will become effective for the City of Brooklyn Center for the 2003
Annual Financial Report. Following the conversion to LOGIS' new JD Edwards software,
the Finance Department will be planning and preparing for the work needed to be ready
for the new reporting model.
Del &
Touche
Deloitte & Touche LLP Telephone: (612) 397-4000
400 One Financial Plaza Facsimile: (612) 397 -4450
120 South Sixth Street
Minneapolis, Minnesota 55402 -1844
May 17, 2000
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, 1999 (on which we have issued our report dated
May 17, 2000), 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, 1999.
Our comments are presented under the following main captions:
Exhibit I - Current -Year Comments
Exhibit H - 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,
DeloltteTouche
Tohmatsu
EXHIBIT I
CURRENT -YEAR COMMENTS
Accrual for Post - Employment Benefits:
Observation:
The City offers post - employment medical benefits to qualifying employees. This liability has continued
to increase significantly over the years. An actuarial valuation of the liability has never been performed.
We understand the City has been reluctant to have an actuarial valuation because the cost may exceed the
benefits.
Recommendation:
We recommend that the City have an actuarial valuation performed during 2000 to develop a baseline of
this liability. Such baseline could then be updated every three to five years, as necessary.
Fixed Asset System Upgrade:
Observation:
During documentation of controls, we were informed that the City upgraded to the NetWare Operating
Systems in June 1999. However, 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 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.
Recommendation:
We recommend 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.
Service Auditors' Report:
Observation:
During testing of controls, 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.
2
Recommendation:
We recommend that an 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.
Segregation of Duties - Utility Billing:
Observation:
During testing of controls, we noted that payments are received directly by the utility billing department.
Recommendation:
We recommend that the City consider setting up a lock -box system that would allow segregation of
billing and cash receipts within the billing department.
Financial Reporting Model:
On June 30, 1999, the Governmental Accounting Standards Board (GASB) issued Statement of
Government Accounting Standards (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. SGAS No. 34, which the GASB has been working on
for more than 15 years, represents the most important single change in the history of accounting and
financial reporting for the public sector.
Under SGAS No. 34, it is expected that "anyone with an interest in public finance - citizens, the media,
bond raters, creditors, legislators, and others, will have more and easier -to- understand information."
Financial reports will have information about the full cost of providing services to citizens. Under SGAS
No. 34, the 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.
The new pronouncement will move the public sector closer to the accounting methods followed in the
private sector, including the full accrual basis of accounting and recording of depreciation expense. The
balance sheet will be replaced by a statement of net assets, in which the amount invested in infrastructure
will be shown net of accumulated depreciation and net of outstanding debt. The GASB believes that the
new reporting will help determine whether the institution's financial health is improving or deteriorating.
It is also believed that SGAS No. 34 could help council members better understand the long- and short-
term implications of policy decisions. The requirements of SGAS No. 34 are effective for the City for
financial statements of periods beginning after January 1, 2003.
Major difference in report formats including:
• An entitywide statement of activities designed to highlight 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.
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• Governmental activities in the fund financial statements will include a general fund and also focus on
major individual funds (as defined) with aggregate information presented for the total of all nonmajor
funds. A balance sheet and statement of revenues, expenditures and changes in fund balances will be
required for governmental activities.
• Business -type activities (as defined) will be reported on separately as part of the fund financial
statements. A statement of net assets, statement of revenues, expenses and changes in net assets, and
a statement of cash flows will be required for these proprietary fund activities. The reporting of cash
flows from operating activities for business type activities will use the "direct" method of presenting
information on specific cash flows (e.g., cash paid to suppliers, cash paid to employees, cash
received from customers).
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 revenue fund that has a legally adopted annual
budget. The reporting model will require a budgetary comparison for the general fund and individual
major revenue funds following the notes to the financial statements. Notes are required to explain any
excess of expenditures over appropriations in individual funds.
The City is in the process of addressing this issue. They have had discussions with our firm in order to
begin assessing the necessary changes to reporting for governments under this new requirement. We
recommend that the City design a formal written plan for the consideration and implementation of
SGAS No. 34. We can be of assistance in this effort, as has been described in communications to you
from our firm.
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t
EXHIBIT II
STATUS OF PRIOR -YEAR COMMENTS
Uncollected State Aid:
Recommendation:
The City had a receivable recorded for approximately $78,500 at the end of 1998 relating to two street
projects the City completed at the end of 1996. The City had not collected this amount from the state due
to lack of proper documentation submitted to the state. As a result, the City had to provide the financing
for this project for over two years.
We recommended that the City review their procedures to ensure timely and complete submission of
proper documentation to reimbursing parties to reduce the length of time the City finances reimbursable
projects.
Response:
The City has taken steps to ensure that the only projects that have not been remitted for reimbursement
are the ones that are ahead of schedule (such as a project in which more steps have been completed than
the state has allotted for so far).
Arbitrage:
Recommendation:
During 1998 the City's building construction projects ($7.9 million) funded by tax - exempt bonds fell
behind schedule. The bonds required a percentage of the proceeds be expended at certain points in time.
If the spending requirements were not met, the City would have arbitrage on these bonds, resulting in the
City owing the federal government the difference between the interest earned on the proceeds deposited
from these bonds and interest paid on the debt, in addition to a penalty owed.
At December 31, 1998, the City had not performed its arbitrage calculation to determine whether or not
the City would have such a liability to the federal government. We recommended that the City adopt and
execute procedures so the arbitrage calculation would be completed at the end of each year for tax -free
bonds.
Response:
The City hired a consulting firm to perform the appropriate arbitrage calculation and year -end estimate
for 1999.
5
c
Preparation of Comprehensive Annual Financial Report (CAFR):
Recommendation:
For the fiscal 1999 audit, we recommended coordination of the audit and preparation of the CAFR such
that year -end audit fieldwork coincides with receiving a preliminary draft of the CAFR financial
statements. This would likely make the audit process more efficient.
Response:
The fiscal 1999 audit fieldwork was moved back a few weeks and the City had a preliminary draft of the
CAFR financial statements when the auditors arrived for fieldwork.
Closing Procedures:
Recommendation:
Typically the City will have the year -end books closed by mid- March. However, the fiscal year 1998
books were not closed until the first part of April 1999. One of the reasons the City was unable to close
its books until April 1999 was because the Engineering department did not finish closing its capital
projects until near the end of March 1999. We recommended that the City consider strengthening its
year -end closing procedures within the Engineering department. We suggested the Engineering
department set a deadline of mid- February to be finished with the closing of capital projects from the
previous year.
Response:
The City successfully strengthened the year -end closing procedures within the Engineering department
by setting a deadline which was met.
Intercompany Loans:
Recommendation:
The City loans money between funds as a method of interfund financing. At December 31, 1998, the
Capital Improvements fund had such a note receivable from the Golf Course fund for $1,050,000. This
note had existed for several years with interest paid by the Golf Course fund to the Capital Improvements
fund at a rate determined by the City Council. Over the past several years, the Golf Course fund made
the interest payments and during years when it had sufficient cash, it would make principal payments as
well. Over the past couple of years, the Golf Course fund has had difficulty in making principal
payments on this loan. As a result, in 1998, the City decided to make this particular interfund note an
interest -free loan. This was done so the Golf Course fund could make its normal interest payments as
principal payments and eventually pay off the loan. Treating this tax -free loan as an "impaired loan"
more accurately reflects the economics of this transaction. The City should consider having the Capital
Improvements fund write off part of this loan as a contribution to the Golf Course fund and then continue
charging interest on the remaining loan amount to the Golf Course fund.
6
Response:
The City Council has dealt with the above issue and has chosen to forgo interest payments. While this
treatment is not in strict accordance with generally accepted accounting principles, the current practice is
consistent with the prior year and not material to the City's combined financial statements for 1999.
Interest free Loan:
Recommendation:
During 1998, the City received two separate interest -free loans of approximately $260,000 from Northern
States Power and recorded these loans at their face value. Under generally accepted accounting
principles, loans that originate with no stated interest rate should be recorded at a discount from the face
value based on the entity's normal borrowing rate.
Response:
Consistent with the prior year, the City has chosen not to comply with this presentation as the amount of
discount for the above referenced loans was determined to be immaterial to the City's combined financial
statements for 1999.
Collateralization:
Recommendation:
In 1998, the City had a checking account in which the technical provisions of securing collateraliztion
had not been perfected. We recommended that the City set a deadline with the bank as to when the
technical completion of collateralization takes place, and if collateral is not perfected in time, the City
should consider changing banks.
Response:
The collateral was perfected in mid -1999 and the City has chosen to stay with the same bank.
7
Deloitte &
Touche
/‘ Deloitte & Touche LLP Telephone: (612) 397 -4000
400 One Financial Plaza Facsimile: (612) 397 -4450
120 South Sixth Street
Minneapolis, Minnesota 55402 -1844
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, 1999, and have issued our report thereon dated May 17,
2000. 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; 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.
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
DeloitteTouche
Tohmatsu
T
components does not reduce to a relatively low level the risk that misstatements in amounts that would be
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.
P re,7 6 , ,f
May 17, 2000
2
r A
Deloitte &
Touche
City of Brooklyn Center
Selected Financial Information
December 31, 1999
I City of Brooklyn Center
A great place to start. A great place to stay.
Note Touche Presented by:
Tohmatsu
Cliff Hoffman, Partner
NS MN MI MI E MI N -- MN ! N Z MN NM I R M O
CITY OF BROOKLYN CENTER
Operating Fund Status
December 31, 1999 vs. December 31, 1998
(in thousands)
Special Internal
General Revenue Enterprise Service
Fund Funds Funds Funds Total
Fund balance at December 31, 1999 $ 7,309 $ 2,701 $ 47,433 $ 6,716 $ 64,159
(as restated)
Less property (44,576) (3,027) (47,603)
Liquid fund balance $ 7,309 $ 2.701 $ 2.857 $ 3.689 $ 16.556
Percentage change (3.10)%
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
OM I MI N MI MI — MN r M— a• r— OM r I MN
CITY OF BROOKLYN CENTER
General Fund Revenues
70%
59% 58%
60% 0 58%
53 /0
50% --
40%
32% 0
30% I 28% 28% 29 /o
20%
6% 5 °c 6% 5J 0 7% 6%
1 0% 4% 0 % 4% 3 %
•
3 1%
I I I I
1997 1998 1999 2000 Budgeted
la Taxes Intergovernmental
• Charges for Services ['Licenses, Permits, and Fines
• Other
Total Revenues 1997 = $12,024,763
Total Revenues 1998 = $13,764,824
Total Revenues 1999 = $14,033,798
Budgeted Revenues 2000 = $14,030,030
2
= = I NE ow um EN ow EN I♦ mu NE ow mu u INN
CITY OF BROOKLYN CENTER
General Fund Expenditures
60% -
_ 46% 46%
50 45 % 370
40%
30% -
20% - 20° /0180/0 18% 18%17% 18% 19% 16% 18% 19% 1 ri
11%
10% 5%
1 % 2% 1%
1997 1998 1999 2000 Budgeted
❑ Public Safety N Parks and Recreation
• General Government ID Public Works
■ Other
Total Expenditures 1997 = $11,115,096
Total Expenditures 1998 = $11,268,971
Total Expenditures 1999 = $11,772,052
Budgeted Expenditures 2000 = $12,552,426
3
M NM •— NM MI In • S— N E' MI M i N N INN
CITY OF BROOKLYN CENTER
General Fund Revenues /Expenditures
Per Household
$1,400
$1,219 $1 ,242
$1,200
$1,042$989 1 070 $989 $998 $1,042
$1,000
$800
$600
$400
$200
$0
1996 1997 1998 1999
Number of
households (1) 11,220 11,238 11,295 11,295
❑Revenues ❑Expenses
(1) The Metropolitan Council is the source of population estimates and it has not yet released the
1999 estimate.
4
Mr M— NM r ■r r N WM M M MI — NM MI s Mr INN •
CITY OF BROOKLYN CENTER
Productivity Measures
1996 1997 1998 1999
Population (1) 28,502 28,515 28,535 28,535
Number of Households (1) 11,220 11,238 11,295 11,295
Number of Full -Time Authorized Positions 158 158 160 164
Population per Authorized Positions 180 180 178 174
Households per Authorized Positions 71 71 70 69
(1) The Metropolitan Council is the source of population estimates and it has not yet released the 1999 estimate.
5
In an • -- MI S r -- M— MB NS M I M NM NM
CITY OF BROOKLYN CENTER
Selected Performance Indicators
December 31, 1999
National
Brooklyn Center Average (1)
I. DEBT MEDIANS
Net debt per capita $757 $765
Ratio of net debt to estimated market value 1.8% 1.6%
II. ENTERPRISE MEDIANS
1999 1998
Operating ratio:
Water utility 39.9% 30.5% 37.0%
Sewer and storm 42.9 36.6 32.5
Liquor 31.5 28.1 Not available
Golf course 23.5 17.6 Not available
Earle Brown Heritage Center (1.7) (3.9) Not available
Recycling (1.2) (1.2) Not available
III. PROPERTY VALUES
1994 $ 973,201,300
1998 1,098,611,500
1999 1,177,854,400
One -year growth rate - 7%
Five -year growth rate - 21%
(1) Per 1997 Moody's Selected Indicators of Municipal Performance.
6
�r —• s— MO I r— i e— OM OM NM M w e MI
CITY OF BROOKLYN CENTER
Performance Definitions
I. 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 market value = debt - funds on hand
Estimated market value
II. ENTERPRISE MEDIANS
Operating expenses
Operating ratio = 1- (without depreciation)
Operating revenues
O E MI N MI O M r MI • = NM M — — — — MI i
CITY OF BROOKLYN CENTER
Enterprise Funds - Operating Income (Loss)
(in thousands)
1996 1997 1998 1999
Income (loss) before operating transfers:
Water utility $ 437 $ 381 $ 344 $ 283
Sanitary sewer 317 297 350 452
Golf course 13 13 35 65
Municipal liquor store 170 185 192 249
Recycling and refuse (3) (5) (1) (1)
Earle Brown Heritage Center* (159) (345), (457) (449)
Storm drainage 536 640 1,497 2,090
Total enterprise funds $ L311 $ L166 $ 1.960 $ 2.689
*Net cash used for operating activities in 1999 was $21,431.
8
MI NM — r r r r r r rr rr r r we am EN — r or
CITY OF BROOKLYN CENTER
Fire Department Relief Association
Retirement Obligations
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
1996 1997 1998 1999
C I Market value of assets ❑ Benefit obligation
9
- Mill EIN EIN EN ME UN EN = = NE EN NE MN 1011 NE NE MI INIS
CITY OF BROOKLYN CENTER
Market Values and Legal Debt Margin
Market Values Legal Debt Margin
$1,200,000,000 $20,000,000 -
--
? $18,000,000
$1,000,000,000 , , I I $16,000,000
$14,000,000 -
$800,000,000 I . -
$12,000,000
- I I I I I
$600,000,000 - ' - $10,000,000
I $8,000,000
$400,000,000 - -- -- --- - - -- -
I I I I I
$6,000,000 1 1 1 1 1
- - ---1 - $4,000,000
$200,000,000 ---
i 11111'
$p I � _ $2,000,000
i i i i �
1994 1995 1996 1997 1998 1999 $0 J ' ' ' ' ' f
1994 1995 1996 1997 1998 1999
10
MN MN OM I I • 0111 INII r • N NM N • • NM I
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
$1,500,000
$1,000,000
$500,000 —
$ 0 1 1 ! 1 I 1 1 ! 1 I 1 I
O N CY) d CO f� CO 0) 0 r N CY) d
0 0 0 0 0 0 0 0 0 0 r r r
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N N N N N
I D General Obligation Bonds El Special Assessments Bonds ill Tax Increment Bonds I
11
CITY OF BROOKLYN CENTER
Management Practices to Avoid
• Using reserves to balance the budget
• Using short-term borrowing to balance the budget
• Using internal borrowing (long -term) to balance the budget
• Selling assets to balance the budget
• Using one -time accounting changes to balance the budget
• Deferring pension and employee benefit obligations
• Deferring maintenance expenditures
• Not costing out nonsalary employee benefits
• Ignoring full -life costs of capital assets
• Investing in derivatives without extensive research and remembering principal is "principle"
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I M • MN N all • MN MI • • MI NM
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 Earl 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.
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NE S - -- i!=No Ns ow um — No ow um um I ow
CITY OF BROOKLYN CENTER
What Should Cities
Do Over the Next Five Years?
✓ • Put your financial policies in writing. Have your elected officials formally adopt them. Review these policies with your rating
agencies.
✓ • Determine which spending programs have a large component of Federal or State Aid and consider reducing the growth of such
programs (i.e., Section 8 Housing).
✓ • Establish and expand internal service funds for capital equipment, data processing, employee health benefits.
✓ • Review the asset lives used on all fixed assets. Use as conservative a life as possible.
• Prepare five -year summaries on the growth of government services based upon head count and cost as compared to growth in
the number of households, property valuation, personal income, etc. There will be a need to prove you are not growing
government faster than warranted.
• Establish an organizational plan for department structure five years from now.
✓ • Establish a capital expenditure budget for five years.
• Establish an operating fund budget for five years.
✓ • Continue with comprehensive operations improvement.
• Address how using the Internet can improve efficiencies:
1. Payment of local taxes via a credit card transaction
2. Input from departments and other constituencies for the annual budgeting process
3. Research and other various tools that are available online
4. Services such as registering cars, paying traffic violations, consumer complaints
• Develop and implement a plan for the new government reporting model.
✓ = Brooklyn Center is currently performing or has performed this procedure.
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1
COMPREHENSIVE
1
ANNUAL
1
FINANCIAL REPORT
1 of the
1 CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1999
Michael J. McCauley, City Manager
1
1
' Prepared by
' THE DEPARTMENT OF FINANCE
Charles Hansen, Director
1
1
(Member of Government Finance Officers
1
Association of the United States and Canada)
1
1
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City of Brooklyn Center, Minnesota
1 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
TABLE OF CONTENTS
Exhibit Page
Number Number
I. INTRODUCTORY SECTION
Title Page
' Table of Contents ii - vii
City Officials 1
' Organization Chart 2
City Manager's Letter 3
Letter of Transmittal 4 - 14
Certificate of Achievement 15
II. FINANCIAL SECTION
Independent Auditors' Report 16
1 A. General Purpose Financial Statements
(Combined Statements - Overview): 17
' Combined Balance Sheet - All Fund Types and
Account Groups 1 18 - 19
1 Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
1 Fund Types 2 20
Combined Statement of Revenues, Expenditures and
I Changes in Fund Balances - Budget And Actual -
General and Special Revenue Funds 3 21
1 Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - Proprietary
Fund Types 4 22
Combined Statement of Cash Flows -
Proprietary Fund Types 5 23
Notes to Financial Statements 24 - 49
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City of Brooklyn Center, Minnesota
ty y nnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
TABLE OF CONTENTS '
Statement/
Schedule Page
Number Number
B. Combining, Individual Fund and Account Group
Financial Statements and Schedules:
General Fund:
Comparative Balance Sheet A -1 51
Comparative Statement of Revenues,
Expenditures and Changes in Fund
Balance - Budget and Actual A -2 52
Schedule of Revenues & Other Financing
Sources - Budget and Actual S -1 53 - 54
Schedule of Expenditures & Other S -2 55 - 59 '
Financing Uses - Budget and Actual
Special Revenue Funds:
Combining Balance Sheet B -1 61 - 62
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances B -2 63 - 64
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Housing and Redevelopment Authority Fund B -3 65
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Economic Development Authority Fund B -4 66
Statement of Revenues, Expenditures and '
Changes in Fund Balance - Budget and Actual
E. Brown Tax Increment Financing District Fund B -5 67
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual 111 Tax Increment District No. 3 Fund B -6 68
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City of Brooklyn Center, Minnesota
1 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
I TABLE OF CONTENTS
Statement/
I Schedule Page
Number Number
Statement of Revenues, Expenditures and
I Changes in Fund Balance - Budget and Actual
Tax Increment District No. 4 Fund B -7 69
1 I Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Police Drug Forfeiture Fund B -8 70
1 Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
I Community Development Block Grant Fund B -9 71
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
1 City Initiatives Grant Fund
Y B-10 72
I Debt Service Funds:
Combining Balance Sheet C -1 74
I Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C -2 75
I Capital Projects Funds:
Combining Balance Sheet D -1 77
I Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D -2 78
1 Project - Length Schedule of Construction
Projects - Capital Improvements Fund S -3 79
1 Project- Length Schedule of Construction Projects
- Municipal State Aid for Construction Fund S -4 80
Project- Length Schedule of Construction Projects
- Special Assessment Construction Fund S -5 81
1 Enterprise Funds:
Combining Balance Sheet E -1 83 - 84
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City of Brooklyn Center, Minnesota I
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
TABLE OF CONTENTS 1
Statement/
Schedule Page I
Number Number
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings E -2 85 - 86
I
Combining Statement of Cash Flows E -3 87 - 88
Comparative Statement of Revenues, Expenses I
and Changes in Retained Earnings - Municipal
Liquor Fund E -4 89
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Golf
Course Fund E -5 90
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Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Earle
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Brown Heritage Center Fund E -6 91
Comparative Statement of Revenues, Expenses
I
and Changes in Retained Earnings - Recycling
and Refuse Fund E -7 92
Comparative Statement of Revenues, Expenses I
and Changes in Retained Earnings - Water
Utility Fund E -8 93 0 I
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Sanitary
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Sewer Fund E -9 94
Comparative Statement of Revenues, Expenses I
and Changes in Retained Earnings - Storm
Drainage Fund E -10 95
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Internal Service Funds:
Combining Balance Sheet F -1 97
Combining Statement of Revenues, Expenses I
and Changes in Retained Earnings F -2 98
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City of Brooklyn Center, Minnesota
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' COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
TABLE OF CONTENTS
Statement/
I Schedule Page
Number Number
Combining Statement of Cash Flows F -3 99
1 General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
I by Source S -6 101
Schedule of General Fixed Assets
I By Function and Activity S -7 102
Schedule of Changes in General Fixed Assets
I,' By Function and Activity S -8 103
General Long -Term Debt Account Group:
I Comparative Statement of General
Long -Term Debt G 105
I Summary of Debt Service Requirements
to Maturity H 106
• III. STATISTICAL SECTION Table Page
Number Number
General Governmental Expenditures by Function 1 108
I General Governmental Revenues and Other
Financing Sources by Source 2 109
I Tax Levies and Tax Collections 3 110
I' Assessed Value and Estimated Market Value of All
Taxable Property 4 111
1 Direct and Overlapping Tax Rates and Tax Levies 5 112
1 Special Assessment Billings and Collections 6 113
' Ratio of Net Bonded d Debt to Assessed Value and
Net Bonded Debt Per Capita 7 114
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City of Brooklyn Center, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1999
TABLE OF CONTENTS 1
Table Page
Number Number
Computation of Legal Debt Margin 8 115
Computation of Direct and Overlapping Debt 9 116 1
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Fund
Expenditures 10 117
Schedule of Revenue Bond Coverage 11 118
Property Value, Construction and Bank Deposits 12 119
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Principal Taxpayers 13 120
Schedule of Insurance Coverage 14 121 - 122
Demographic Statistics 15 123
Miscellaneous Statistical Facts 16 124 - 125
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1 City of Brooklyn Center
CITY OFFICIALS
1 For the Year Ended December 31, 1999
1 ELECTED OFFICIALS
1 Term of Office Term Expires
Mayor Myrna Kragness Four Years 12/31/2002
I Councilmember Debra Hilstrom Four Years 12/31/2002
Councilmember Ed Nelson Four Years 12/31/2002
Councilmember Kay Lasman Four Years 12/31/2000
1 Councilmember Robert Peppe Four Years 12/31/2000
APPOINTED OFFICIALS
City Manager Y g Michael J. McCauley
Asst. City Manager /H.R. Director Jane Chambers
1 City Clerk Sharon Knutson
City Treasurer Charles Hansen
City Attorney Kennedy & Graven
1 City Prosecutor Carson & Clelland
1 Department Heads:
Community Activities, Recreation & Services James Glasoe
I Community Development Brad Hoffman
Financial Services Charles Hansen
Fire /Emergency Preparedness Ronald Boman
1 Police Joel Downer
Public Works Diane Spector
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Assessing Stephen Baker
I City Engineer Scott Brink
Civil Defense Coordinator Ronald Boman
Fire Marshall Ronald Boman
1 Health Officer Duane Orn, M.D.
Liquor Stores Gerald Olson
Public Works Superintendent Dave Peterson
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City of Brooklyn Center Organization
• 2000
, • .
ELECTORATE
Advisory
City Council
Commissions
N
ADMINISTRATION
- Purchasing
-Human Resources
- Communications
City Attorney City Manager Mgmt. Info. Systems
- Liquor Stores
- Elections
- Licenses
-City Clerk
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PUBLIC WORKS FIRE DEPARTMENT RECREATION, POLICE DEPARTMENT AND SERVICES
COMMUNITY
FINANCIAL SERVICES
- Engineering -Fire Prevention - Patrol (DELOPMENT
- Street Maint -Fire Suppression -Investigation -Accounting -Community Programs
9 9 - Recreation Programs - Assassin
- Sanitary Sewer - Emergency Preparedness -Crime Prevention -Audit -Community Center -Assessing
- Central Garage
-Community Programs -Utility Billing ty Inspections
` / Y 9 rams Y g -Gov't Bldgs - EDA/HRA
-Storm Sewer - Support Services -Risk Management -Golf Course - Zoning
Water Dept - Dispatch ` - Senior Transportation
-Park Maint ` / 1 P / i - Heritage Center
\ \. / - Planning
..11 - - a I Mill - Mill IM - Mill - M MN - E - 1
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City of Brooklyn Center
1 A great place to start. A great place to stay.
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May 17, 2000
1
I HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
I I hereby transmit the Comprehensive Annual Financial Report of the City of Brooklyn
Center for the fiscal year ended December 31, 1999. Minnesota Statutes and City Charter,
Section 7.12, require that the financial statements of the City of Brooklyn Center be audited
I 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 and Touche
LLP and their report is included in the financial section of this report.
I This report has been prepared following the guidelines recommended by the Government
Finance Officers Association of the United States and Canada. The Government Finance
I Officers Association awards Certificates of Achievement for Excellence in Financial
Reporting to those governments whose Comprehensive Annual Financial Reports are
judged to conform substantially with high standards of public financial reporting, including
1 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
1 be submitted to the Government Finance Officers Association for review.
Respectfully sub' itted,
g ,f'
le7 401pm e & „„,"----
____
1 Michael J. Mc' . d ley
City Manager
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1 6301 Shingle Creek Pkwy, Brooklyn Center MN 55430 -2199 • City Hall & TDD Number 9
y y u (612) 56 3300
1 Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
An Affirmative Action /Equal Opportunities Employer
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City of Brooklyn Center
A great place to start. A great place to stay.
May 17, 2000
Mr. Michael J. McCauley
City Manager
' City of Brooklyn Center
Dear Mr. McCauley:
1 The comprehensive annual financial report of the City of Brooklyn Center (the City) for the
fiscal year ended December 31, 1999, is hereby submitted. Responsibility for both the
' accuracy of the data, and the completeness and fairness of the presentation, including all
disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data
are accurate in all material respects and are reported in a manner designed to present
' fairly the financial position, results of operations, and cash flows of the various funds and
account groups of the City. All disclosures necessary to enable the reader to gain an
understanding of the government's financial activities have been included.
' The comprehensive annual financial report is presented in three sections: introductory,
financial, and statistical. Included in the introductory section is this transmittal letter, the
' government's organizational chart and a list of principal officials. The financial section
includes the general purpose financial statements and the combining and individual fund
and account group financial statements and schedules, as well as the independent
1 auditors' report on the financial statements and schedules. The statistical section includes
selected financial and demographic information, generally presented on a multi year basis.
1 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
1 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, 1999, so no single
audit was required.
1 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.
1
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • Cit y Hall & TDD Number (612) 569 -3300
Recreation and Community Center Phone & TDD Number (612) 569 -3400 • FAX (612) 569 -3494
' An Affirmative Action /Equal Opportunities Employer
1
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 three off -sale liquor stores
with plans to consolidate into two stores in 2000, a public water and sewer utility, a golf
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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 1990 Census count for the City is 28,887, a
7.5% decline from the 1980 Census. The 1998 population, as estimated by the
Metropolitan Council, is 28,535. In contrast to the decline in population (which is due
almost entirely to fewer persons per household), the number of housing units has generally
continued to increase from 10,493 in 1970 to 11,035 in 1980 and 11,704 in 1990. The
numbers dropped slightly in 1998 to 11,295 housing units. This was due to the removal
of some units by the City in accordance with a preplanned redevelopment effort.
The estimated market value of property within the City increased 7.42% in 1998 over 1997
and it increased 7.29% in 1999 over 1998. The City Assessor reports that residential
values are continuing to show increases in early 2000 although commercial /industrial
values are less robust.
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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 52.4% 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
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Buy. Other free - standing retail establishments include K -Mart, Kohl's Department Store,
Toys' R Us, and a Rainbow supermarket. Westbrook Mall, which was the fifth shopping
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1 center, was torn down in 1999 to make way for a Cub supermarket and various other retail
shops.
1 New construction in 1999 includes the Regal Cinema Theater for $8,782,377; Wickes
Furniture warehouse for $5,046,300; Cub Foods supermarket for $3,000,000; an addition
to the Target Store for $1,100,000 and Applebee's Restaurant for $625,000. Other
commercial remodeling projects included Brookdale Chrysler Plymouth for $550,000 and
Northern States Power for $275,400.
1 The convergence of highways in Brooklyn Center makes it an attractive site for hotels and
motels. Establishments now operating in the City include Americlnn, Baymont Inn, Comfort
' Inn, Country Inn & Suites, Extended Stay America, Hilton Hotel, Holiday Inn, Inn on the
Farm, and Super 8 Motel. In addition, a Motel 6 is in the planning stage.
MAJOR EVENTS OF 1999
' Brooklyn Center is a mature, developed suburb which is working to revitalize itself. With
its affordable housing, excellent schools, beautiful parks, and convenient access, it has the
potential to continue to be a vibrant community for many years to come. The revitalization
1 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 Brookl
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area with the purchase of additional property for future commercial development and
roadway improvements.
' 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 1999, 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 continued through 1999. Due to the
tight construction market and difficulties with construction, the projects won't be completed
until 2000. Any cost implications of the construction difficulties are not expected to
materially affect the City's financial position. The project is accounted for in the Capital
Improvements Fund.
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During 1999, the City continued phase two of the 53rd Avenue Development and Linkage
Project. The Project will create a new image and focus for the southeast neighborhood by
creating new homes, green space, and a link to the Mississippi River. Phase one of the
project required the removal of 28 housing units along 53rd Avenue which will create
opportunities for a green way and a new low- traffic roadway. Phase two of the project
includes new owner occupied housing developed on the land not needed for the green
way. Houses valued from $150,000 to $209,000 have been built and were sold out quickly.
Most buyers came from within a one mile radius of the project. This indicates the desire
and capacity for move up housing within the community. The project is accounted for in
the Economic Development Authority Fund.
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 2000 and 2001.
In support of the Brookdale Mall expansion, the City received a $2,000,000 grant from the
State of Minnesota during the 1997 legislative session to assist with Shingle Creek
Regional Pond project costs. The Shingle Creek Regional Pond is a system of storm
sewer and detention ponds which will provide storm water treatment for 670 acres of
residential and commercial land in Brooklyn Center and Minneapolis. This drainage area
includes the Brookdale Mall and surrounding commercial area. The project was completed
in 1999 and is accounted for in the Storm Drainage Fund.
During the 1998 legislative session, the City was awarded a $2,500,000 grant from the
State of Minnesota for the expansion of the Earle Brown Heritage Center. The grant
provided funding for a new parking lot and additional meeting space for the convention
center. Construction was substantially completed in 1999. The project is accounted for
in the Capital Improvements Fund.
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)
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1 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
I and generally are not reappropriated in the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this
I report, the City continues to meet its responsibility for sound financial management.
GENERAL FUND
The following schedule presents a summary of general fund budgeted revenues for 2000,
I and actual revenues for the fiscal year ended December 31, 1999, compared to 1998.
I General Fund Revenues and Other Financina Sources
1999 Increase
I 2000 1999 1998 (Decrease)
Budget Actual Actual from 1998
Taxes $8,134,653 $8,333,440 $7,980,066 $353,374
1 Reserve for tax abatements (113,949) (30,322) (83,627)
Licenses & permits 512,050 763,960 549,067 214,893
I Intergovernmental revenue 4,067,577 3,911,480 3,875,392 '36,088
I Charges for services 779,750 739,054 771,614 (32,560)
Court fines 200,000 205,460 193,688 11,772
I Miscellaneous revenues 336,000 194,353 425,319 (230,966)
Total $14,030,030 $14,033,798 $13,764,824 $268,974
1 Revenues and other financing sources for the General Fund totaled $14,033,798 in 1999,
an increase of $268,974 from the previous year. From the table above, it is apparent that
I the major sources of revenue available for funding of general governmental functions are
taxes and intergovernmental revenue, which, when combined, provide 86% of the total
revenues. The principal sources of intergovernmental aid to the City are homestead and
I agricultural credit aid of $1,307,465 and local government aid of $2,069,744. Taxes
increased $353,374 primarily due to the 1999 property tax levy increase and higher lodging
tax collections.
1 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
I potential future abatements on large commercial properties. The City increased the
reserve in the General Fund by $113,949 and $30,322 in 1999 and 1998, respectively.
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The balance in the reserve in the General Fund was $250,233 and $136,284 on December 1
31, 1999 and 1998, respectively. City management estimates that potential tax
abatements not covered by the reserve would not materially affect the finances of the City.
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The following schedule presents a summary of general fund budgeted expenditures for
2000, and actual expenditures for the fiscal year ended December 31, 1999, compared to
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1998.
General Fund Expenditures and Other Financina Uses 1
1999 Increase
2000 1999 1998 (Decrease)
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Budget Actual Actual from 1998
General Government $2,222,724 $2,257,957 $2,133,829 $124,128
Public Safety 5,231,133 5,336,622 5,137,108 199,514
Public Works 2,651,138 1,904,205 1,955,108 (50,903)
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Community Service 95,030 83,295 73,066 10,229
Parks and Recreation 2,314,041 2,132,511 2,075,180 57,331
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Economic Development 308,750 383,927 313,792 70,135
Non departmental 478,843 343,925 312,625 31,300
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Admin. Services Reimb. (749,233) (670,390) (731,737) 61,347
Other Financing Uses 1,477,604 1,591,039 1,427,001 164,038 1
Total $14,030,030 $13,363,091 $12,695,972 $667,119
Total expenditures and other financing uses in 1999 increased by a total of $667,119 over 1
1998, a 5.25% increase. Contributing to the increase was a $120,000 infusion into the
Employee Retirement Fund which accounts for post - retirement health care costs for City
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employees. Additionally, legal services increased $79,632 over 1998 levels in 1999;
buildings expenses increased $50,369 as the new police building became operational;
convention bureau payments increased $70,135 in tandem with higher lodging revenues;
I
and police and fire personal services expenses increased $163,309 over 1998 levels, a
4.3% increase.
The General Fund also transferred $424,917 to the Special Assessment Construction Fund 1
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
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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 I
expenditures and other financing uses of $670,707 for 1999.
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1 GENERAL FUND BALANCE
' As of December 31, 1999, the fund balance of the General Fund totaled $7,308,707. This
ending fund balance is the equivalent of approximately six months of expenditures for the
2000 budget. Property taxes and intergovernmental revenue represent 82% of the
' budgeted general fund revenue for 2000. 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 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,
1998, revealed a surplus of $1,451,220 above the minimum requirements which is
available for other uses. This allowed the transfer of up to $725,610 to other funds.
The City Council passed a resolution transferring $475,000 of surplus funds from the
General Fund to the Capital Improvements Fund for future government building and park
improvements and $225,000 to the Special Assessment Construction Fund for future street
improvements. These appear in the financial statements as equity transfers since they
relate to the prior year's surplus.
1 EARLE BROWN FARM TAX INCREMENT DISTRICT
' This tax increment financing (TIF) district had a deficit fund balance as of December 31,
1999. 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.
1 ENTERPRISE OPERATIONS
The City's enterprise operations are composed of seven separate and distinctive activities:
Liquor stores, Golf Course, Earle Brown Heritage Center, Recycling, Water utility, Sanitary
Sewer utility, and Storm Drainage utility.
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The liquor operation is composed of three retail stores. Two stores are leased and one is
owned. In 2000, a leased store and the currently owned store will be consolidated into a
new leased location, resulting in two remaining stores. The consolidation will negatively
impact earnings in 2000. It is hoped that the change will increase profitability in the long
term; the stores have been consistently profitable throughout their history.
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 is being repaid over a planned schedule covering twenty years. 1
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 1
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. The Inn on the
Farm is a bed and breakfast with ten rooms available. A $2,500,000 grant from the State
of Minnesota is providing for additional parking and meeting space. The City's policy for
this enterprise is to set fees and user charges at a level which allows the operations to
break -even excluding depreciation on contributed assets. That standard was met in 1996
and 1997, but not in other years. It is hoped that the new space will improve results.
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. So far it is operating a recycling program. Expansion
into garbage collection will take place when there is clear advantage to be achieved by it.
Goals for the l'
e recyc ing 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 them
both profitable. Mains and customer service lines are being replaced laced as needed
concurrent with the City's 25 -year program for reconstructing streets.
During the 1980's, the State of Minnesota passed legislation that requires cities to take 1
greater responsibility for controlling storm water runoff. In response to this, the City
created a Storm Drainage Utility Fund. Its fee structure is based upon the amount of water
discharged into the storm sewer system. Construction of storm sewer lines are being
made concurrent with the City's 25 -year program for reconstructing streets.
1
INTERNAL SERVICE FUNDS
The Central Garage Fund was established to own and maintain all operating equipment 1
of the City valued over $10,000. At present, the fund maintains some 152 pieces of rolling
1 11
1 and non rolling stock equipment with a net book value of $3,026,809. 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
' $1,393,362 and an estimated liability of $1,371,240 at the 1999 year -end. A transfer of
$120,000 was made from the General Fund in 1999 to offset the increased liability
resulting from rising health insurance premiums.
1 DEBT ADMINISTRATION
At December 31, 1999, the City had thirteen debt issues outstanding. These issues
include $10,915,000 of general obligation bonds, $5,920,000 of special assessment debt
with government commitment, $1,230,000 of general obligation revenue bonds and
$10,420,000 of general obligation tax increment bonds. The City maintained its A -1 rating
' from Moody's Investors Service.
I The City issued $1,585,000 of bonds supported solely by special assessments during
1999. 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. The yield on investments ranged from a high of 7.89 percent to a low of 4.34
percent.
' Interest earned during 1999 amounted to $963,842 compared to $2,309,101 during 1998.
Changes in the fair value of investments reduced 1999 earnings by $839,126, whereas
they had increased the 1998 earnings by $198,243. 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 in fair market value is temporary and will be reversed in
future periods. Aside from the changes in the fair value of investments, 1999 interest
' earnings were lower as a result of Tess money being available for investment. Proceeds
of prior year's bond sales were spent on projects during 1999.
' 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.
I 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
12
1
investments are listed in the lowest custodial credit risk category, Category 1. Cash and 1
investment balances from all funds are combined and invested to the extent available in
authorized investments. Earnings from securities are allocated to the various funds in
proportion to their relative cash book balances.
The City has not purchased any collateralized mortgage obligations, derivatives, or strip
investments. 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, 1999, 33% matures within 1 year,
another 22% in the second year, 9% in the third year, 21 % in the fourth year, 3% in the fifth
year, and the last 12% in the sixth through the tenth years.
1
RISK MANAGEMENT
The City insures all significant risk. A schedule of such insurance is included in the 1
Statistical Section.
1
INDEPENDENT AUDIT
The City Charter and State Statutes require the Council to provide for an audit of the
Y q p
financial transactions of the City. Deloitte & Touche LLP has been retained for that
purpose and their unqualified opinion has been included in this report. 1
CERTIFICATE OF ACHIEVEMENT 1
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, 1998.
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 is valid for a period of one year only. We believe our current
report continues to conform to Certificate of Achievement Program requirements, and we
are submitting it to GFOA to determine its eligibility for another certificate.
1
1
13 1
1
1 ACKNOWLEDGMENTS
I want to express my appreciation to the Finance Department staff for the assistance
provided during the audit. 1 also wish to express our appreciation to the City Manager, the
Mayor, and members of the City Council for their continued interest and support in planning
' and conducting the financial operations of the City in a responsible and progressive
manner.
1 Respectfully submitted,
•
}
Charles Hansen
1 Director of Finance
Robert Sundberg
1 Assistant Director of Finance
•
1
1
1
1
1 14
Certificate of
Achievement
f or Excellence
In Financial
Reportin
Presented to
City of Brooklyn Center
Minnesota
1
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
ea d
December 31, 1998
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 1
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
r k■*1 m rrA" Ca44 &71 69—/
2 }UNITED ANO STA
: y 1
t CANADA o President
TA CORPORATIONS
z‘„
h CHICAGO `
q �� 1
Executive Director
1
1 Deloitte &
Touche
/‘ Deloitte & Touche LLP Telephone: (612) 397 -4000
400 One Financial Plaza Facsimile: (612) 397 -4450
120 South Sixth Street
Minneapolis, Minnesota 55402 -1844
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of the
City Council of the City of Brooklyn Center, Minnesota
We have audited the accompanying eneral purpose financial statements of the City of Brooklyn Center,
g P 1 P Y Y
Minnesota, as of December 31, 1999 and for the year then ended, listed in the foregoing table of contents.
1 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.
1 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
1 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
1 accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, such general purpose financial statements present fairly, in all material respects, the
financial position of the City of Brooklyn Center, Minnesota at December 31, 1999, 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
1 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.
In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2000,
1 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.
1 ' 2
May 17, 2000
DeloitteTouche
1 Tohmatsu
16
1
1
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.
1
•
1
1
•
17
City of Brooklyn Center 1
All Fund Types and Account Groups
COMBINED BALANCE SHEET
December 31, 1999 t
Governmental Fund Types t
Special Debt Capital
General Revenue Service Projects
ASSETS AND OTHER DEBITS
I
Assets:
Cash and cash equivalents (Note 2) $1,218,275 $497,770 $4,544,919 $1,407,861
Investments (Notes 1F, 2) 7,117,968 2,902,799 1,123,361 8,210,074
I Receivables:
Accounts 66,188 12,188 2,062
Delinquent taxes (Note 1J) 158,445 7,481
Special assessments 8,554 3,471,184 480,544
I
Due from other funds (Note 9) 220,122 86,219 255,895
Due from other governments 140,859 1,991 364,251
Inventories and supplies (Note 1G)
I Prepaid expenses
Advances to other funds (Note 9) 105,074 1,669,412
Fixed assets (net of accum depr. where applicable) (Notes 1 C, 3)
Other Debits: I
Amount available in Debt Service Funds
Amount to be provided for General Long -Term Debt
Total Assets and Other Debits $9,035,485 $3,508,448 $9,139,464 $12,390,099
I
LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities:
I
Accounts payable $300,707 $59,436 $1,639 $830,468
Contracts payable 155,334
Due to other funds (Note 9) 17,236
I
Accrued salaries and wages 374,450 6,584 5,508
Accrued vacation & sick pay (Note 1H) 634,389 18,390
Accrued health insurance
Accrued interest payable 111 Advances from other funds (Note 9) 698,143
Deferred revenue (Note 1J) 417,232 7,481 3,471,184 844,795
General obligation bonds payable (Note 6)
I
Other long -term liabilities (Note 6)
Special assessment bonds with governmental commitment (Note 6)
Revenue bonds payable (Note 6)
Total Liabilities 1,726,778 807,270 3,472,823 1,836,105
1
Equity and Other Credits:
Contributed capital (Note 4)
I
Investment in general fixed assets
Retained earnings: (Notes 8 & 10)
Reserved
Unreserved
I
Fund Balances: (Notes 8 & 10)
Reserved 105,074 977,619 5,666,641 1,669,412
Unreserved: I
Designated 5,937,168
Undesignated 1,266,465 1,723,559 8,884,582
Total Equity and Other Credits 7,308,707 2,701,178 5,666,641 10,553,994
I
Total Liabilities, Equity and Other Credits $9,035,485 $3,508,448 $9,139,464 $12,390,099
(See notes to financial statements)
I
18
I EXHIBIT 1
1
Totals
Proprietary Fund Types Account Groups (Memorandum Only)
I General General
Internal Fixed Long -Term December 31,
Enterprise Service Assets Debt 1999 1998
1
$910,943 $745,358 $9,325,126 $11,134,244
I 4,023,202 4,346,626 27,724,030 29,819,514
1,395,703 21,493 1,497,634 1,365,295
165,926 146,907
I
170,253 4,130,535 3,256,003
562,236 556,573
14,039 521,140 467,473
I 441,342 12,572 453,914
125,143 362,258
125,143 126,079
1,774,486 1,854,456
44,575,979 3,026,809 $23,361,414 70,964,202 60,372,176
1 $5,666,641 5,666,641 5,113,659
21,625,834 21,625,834 22,695,472
I $51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,109
1 $953,402 $29,186 $2,174,838 $1,681,895
85,157 240,491 307,352
545,000 562,236 385,000
I
54,497 8,981 450,020 438,361
83,774 28,522 765,075 730,362
1,369,891 1,369,891 1,229,333
1 26,467 26,467 29,831
1,076,343 1,774,486 2,026,028
4,740,692 3,521,604
I $21,335,000 21,335,000 23,015,000
168,906 37,475 206,381 279,339
5,920,000 5,920,000 4,740,000
1,230,000 1,230,000 1,400,000
I 4,223,546 1,436,580 27,292,475 40,795,577 39,784,105
I 22,933,780 3,174,526 26,108,306 25,258,665
$23,361,414 23,361,414 17,043,726
I 409,364 409,364 392,874
24,089,914 3,541,752 27,631,666 24,472,065
8,418,746 15,387,336
1
5,937,168 5,726,226
11,874,606 9,205,112
I 47,433,058 6,716,278 23,361,414 103,741,270 97,486,004
$51,656,604 $8,152,858 $23,361,414 $27,292,475 $144,536,847 $137,270,109
1 19
1
City of Brooklyn Center EXHIBIT 2 t
All Governmental Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1999
I
Totals
Special Debt Capital (Memorandum Only)
Revenues General Revenue Service Projects 1999 1998
I
Taxes and special assessments $8,219,491 $3,233,790 $690,538 $217,306 $12,361,125 $11,202,457
Licenses and permits 763,960 763,960 549,067
Intergovernmental 3,911,480 1,663,648 308,310 2,718,728 8,602,166 4,936,343 I
Charges for services 739,054 739,054 771,614
Court fines 205,460 205,460 193,688
Investment eamings 346,382 200,873 137,511 502,728 1,187,494 1,586,399
I
Change in fair value of investments (158,708) (97,456) (32,598) (288,853) (577,615) 146,180
Sale of property 2,411,987 2,411,987
Miscellaneous 6,679 140,367 21,004 168,050 439,013
Total Revenues 14,033,798 7,553,209 1,103,761 3,170,913 25,861,681 19,824,761 1'
Expenditures
I Current:
General government 2,257,957 2,458 2,260,415 2,134,001
Public safety 5,336,622 17,791 5,354,413 5,185,965
Public works 1,904,205 1,904,205 1,955,108
I
Community services 83,295 83,295 73,066
Parks and recreation 2,132,511 100,954 2,233,465 2,148,201
Economic development 383,927 2,280,977 2,664,904 893,522
I
Non departmental 343,925 343,925 312,625
Administrative Services Reimbursement (670,390) (670,390) (731,737)
Capital outlay 3,522,148 10,316,554 13,838,702 6,453,906
Debt service: I
Principal retirement 2,085,000 2,085,000 1,285,000
Interest and fiscal charges 1,387,544 1,387,544 1,285,460
Total Expenditures 11,772,052 5,924,328 3,472,544 10,316,554 31,485,478 20,995,117
1
Excess or Deficiency( -) of Revenues
Over Expenditures 2,261,746 1,628,881 (2,368,783) (7,145,641) (5,623,797) (1,170,356)
1
Other Financing Sources or Uses( -1
Proceeds from sale of bonds 1,585,000 1,585,000 2,670,000
I
Operating transfers in - 233,751 2,921,765 499,917 3,655,433 3,646,198
Operating transfers out (1,591,039) (2,113,751) (3,704,790) (4,071,198)
Total Other Financing Sources or Uses( -) (1,591,039) (1,880,000) 2,921,765 2,084,917 1,535,643 2,245,000
I
Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses 670,707 (251,119) 552,982 (5,060,724) (4,088,154) 1,074,644
I
Fund Balances January 1 7,338,000 2,952,297 5,113,659 14,914,718 30,318,674 29,244,030
Equity Transfers In (Out) (700,000) 700,000 t
Fund Balances December 31 $7,308,707 $2,701,178 $5,666,641 $10,553,994 $26,230,520 $30,318,674
1
(See notes to financial statements)
20 I
1
EXHIBIT 3
I
City of Brooklyn Center
General and Special Revenue Funds
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
I AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Year Ended December 31, 1999
I General Fund Special Revenue Funds
Actual Over Actual Over
I Under(-) Under( -)
Budget Actual Budget Budget Actual Budget
Revenues
I Taxes and special assessments $8,214,083 $8,219,491 $5,408 $2,857,761 $3,233,790 $376,029
Licenses and permits 418,628 763,960 345,332
Intergovernmental 3,894,372 3,911,480 17,108 1,719,113 1,663,648 (55,465)
Charges for services 862,206 739,054 (123,152)
I Court fines 204,000 205,460 1,460
Investment earnings 280,000 346,382 66,382 150,000 200,873 50,873
Change in fair value of investments (158,708) (158,708) (97,456) (97,456)
I Sale of property 2,420,000 2,411,987 (8,013)
Miscellaneous 12,000 6,679 (5,321) 24,000 140,367 116,367
Total Revenues 13,885,289 14,033,798 148,509 7,170,874 7,553,209 382,335
1 Expenditures
General govemment 2,357,773 2,257,957 (99,816) 2,458 2,458
I Public safety 5,433,832 5,336,622 (97,210) 26,987 26,987
Public works 2,016,754 1,904,205 (112,549)
Community services 84,910 83,295 (1,615)
Parks and recreation 2,232,090 2,132,511 (99,579) 100,954 100,954
I Economic development 385,250 383,927 (1,323) 6,328,461 5,793,929 (534,532)
Non - departmental 534,653 343,925 (190,728)
Admin. Services Reimbursement (737,487) (670,390) 67,097
I Total Expenditures 12,307,775 11,772,052 (535,723) 6,328,461 5,924,328 (404,133)
Excess or Deficiency( -) of Revenues
I Over Expenditures 1,577,514 2,261,746 684,232 842,413 1,628,881 786,468
Other Financing Sources or Uses( -1
I Operating transfers in 1,873,609 233,751 (1,639,858)
Operating transfers out (1,591,049) (1,591,039) 10 (3,023,609) (2,113,751) 909,858
Total Other Financing Sources or Uses( -) (1,591,049) (1,591,039) 10 (1,150,000) (1,880,000) (730,000)
I Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses (13,535) 670,707 684,242 (307,587) (251,119) 56,468
I Fund Balances January 1 7,338,000 7,338,000 2,952,297 2,952,297
Equity Transfer In (Out) (700,000) (700,000)
I
Fund Balances December 31 $7,324,465 $7,308,707 ($15,758) $2,644,710 $2,701,178 $56,468
I (See notes to financial statements)
1
21
1
City of Brooklyn Center EXHIBIT 4 I
Proprietary Fund Types
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
I
For the Year Ended December 31, 1999
Internal Totals
I
Enterprise Service (Memorandum Only)
Operating Revenues Funds Funds 1999 1998
Sales and user fees $12,355,755 $1,037,426 $13,393,181 $11,731,365
Cost of sales
I
3,285,487 3,285,487 2,880,024
Net Operating Revenues 9,070,268 1,037,426 10,107,694 8,851,341 1
Operatina Expenses
Personal services 2,942,972 425,870 3,368,842 2,895,627 I
Supplies 363,390 191,104 554,494 539,041
Other services 2,861,174 57,008 2,918,182 2,714,872
Insurance 54,980 32,672 87,652 83,714 I
Utilities 322,062 3,559 325,621 320,038
Rent 236,172 236,172 134,107
Depreciation 1,065,311 506,396 1,571,707 1,422,134
I
Total Operating Expenses 7,846,061 1,216,609 9,062,670 8,109,533
Operating Income (Loss) 1,224,207 (179,183) , 1,045,024 741,808
I
Nonoperatinq Revenues or Expenses ( -)
Investment earnings 298,676 279,611 578,287 560,125
I
Change in fair value of investments (134,551) (127,107) (261,658) 52,062
Special assessments 291,475 291,475 22,767
Intergovernmental 1,092,809 1,092,809 907,191
I
Other revenue 7,454 7,454 56,688
Interest and fiscal agent fees (90,904) (90,904) (123,502)
Total Net Nonoperating 1,464,959 152,504 1,617,463 1,475,331 1
Income Before Operating Transfers 2,689,166 (26,679) 2,662,487 2,217,139
I
Operating Transfers In (Out) (70,643) 120,000 49,357 425,000
Net Income 2,618,523 93,321 2,711,844 2,642,139 1
Depreciation on contributed assets that
reduces contributed capital 318,420 145,827 464,247 446,750 I
Retained Earnings January 1 21,562,335 3,302,604 24,864,939 21,776,050
I
Retained Earnings December 31 $24,499,278 $3,541,752 $28,041,030 $24,864,939
(See notes to financial statements) 1
22 '
1
1 City of Brooklyn Center EXHIBIT 5
Proprietary Fund Types
1 COMBINED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1999
Internal Totals
1 Cash flows from operating activities: Enterprise Service (Memorandum Only)
Funds Funds 1999 1998
Operating income (loss) $1,224,207 ($179,183) $1,045,024 $741,808
Adjustments to reconcile operating income (loss) to
1 net cash provided by operating activities:
Depreciation 1,065,311 506,396 1,571,707 1,422,134
Changes in assets and liabilities:
1 Receivables (82,357) (14,696) (97,053) 176,983
Inventories (83,669) (7,987) (91,656) (15,787)
Prepaid expenses 936 936 15,960
Payables 396,561 (51,035) 345,526 237,688
1 Accrued expenses (40,016) 1,271 (38,745) 58,336
Accrued interest payable (3,364) (3,364) (3,163)
Accrued health insurance liability 140,558 140,558 11,104
Other nonoperating income 1,391,738 1,391,738 986,646
Net cash provided by operating activities 3,869,347 395,324 4,264,671 3,631,709
1 Cash flows from noncaoital financing activities:
Proceeds from borrowings on long -term debt 225,208
Proceeds from borrowings due to other funds 160,000 160,000
Principal payments on long -term debt (56,302) (56,302)
1 Principal payments on advance from other funds (79,969) (79,969) (78,071)
Interest paid on advance from other funds (2,593) (2,593) (4,691)
Interest paid on due to other funds (23,233) (23,233) (45,211)
Operating transfers in (out) (70,643) 120,000 49,357 425,000
1 Net cash (used for) provided by noncapital financing activities (72,740) 120,000 47,260 522,235
Cash flows from capital and related financing activities:
1 Capital contributions 1,234,880 1,234,880 1,387,582
Acquisition and construction of capital assets (4,980,286) (786,750) (5,767,036) (5,932,417)
Principal paid on revenue bonds (170,000) (170,000) (165,000)
Interest paid on revenue bonds (65,078) (65,078) (73,600)
Net cash used for capital and related financing activities (3,980,484) (786,750) (4,767,234) (4,783,435)
1 Cash flows from investing activities:
Investments purchased (2,370,458) (2,561,018) (4,931,476) (7,453,317)
Investments sold or matured 2,052,871 2,326,995 4,379,866 6,210,378
Investment earnings 298,676 279,611 578,287 560,125
1 Net cash (used for) provided by investing activities (18,911) 45,588 26,677 (682,814)
Net decrease in cash and cash equivalents (202,788) (225,838) (428,626) (1,312,305)
1 Cash and cash equivalents at beginning of year 1,113,731 971,196 2,084,927 3,397,232
Cash and cash equivalents at end of year $910,943 $745,358 $1,656,301 $2,084,927
1 Non cash items:
Change in fair value of investments $134,551 $127,107 $261,658 ($52,062)
1 (See notes to financial statements)
I 23
City of Brooklyn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1999
Note 1: Summary of Sianificant Accountina Policies '
The City of Brooklyn Center, Minnesota (City) was formed and operated pursuant
to applicable Minnesota laws and statutes. The governing body consists of a five-
member
City Council elected at large to serve four -year staggered terms.
A. Reportina Entity '
The City includes all funds, organizations, institutions, agencies, departments, and
offices that are not legally separate from such. Component units are legally
separate organizations for which the elected officials of the City are financially
accountable and are included within the general purpose financial statements of the
City because of the significance of their operational or financial relationships with
the City. •
BLENDED COMPONENT UNITS:
Blended component units, although legally separate entities, are, in substance, part
of the government's operations and 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 overnin boards are the City
g g ty 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 if they were part of the City because the governing boards are
the same.. Complete financial statements for the EDA and HRA may be obtained
at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center,
Minnesota 55430.
JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS:
The City has several agreements with overnmental and other entities which
g 1
provide reduced costs, better service, and additional benefits to the participants.
These ro rams in which g h the City participates, are listed below and amounts
recorded within the current year financial statements are disclosed.
1
24 '
1
1 Note 1: Summary of Significant Accounting Policies (confd)
Local Government Information Systems Association (LOGIS):
This consortium of approximately 24 government entities provides computerized
1 data processing and support services to its members. LOGIS is legally separate; the
City does not appoint a voting majority of the Board, and the Consortium is fiscally
independent of the City. The total amount recorded within the 1999 financial
1 statements of the City was $325,962 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:
1 This group provides cooperative purchasing of health and life insurance benefits for
approximately 45 government entities. The total 1999 employee insurance benefits
1 expense, including health and life insurance, recorded within the financial
statements was $602,924. Complete financial statements may be obtained from
DCA, Inc. located at 400 DCA Center, 13100 Wayzata Boulevard, Minnetonka, MN
55305 -1840.
OTHER:
1 The Brooklyn Center Fire Department Relief Association (Association):
The Association is organized as a nonprofit organization, legally separate from the
1 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 and the Association
1 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 and 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 statements
1 of the Association have not been included within the City's reporting entity. (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.
1
1
1 25
1
Note 1: Summary of Sianificant Accounting Policies (cont'd)
B. Fund Accountina
The accounts of the City are organized on the basis of funds and account groups,
each of which is considered a separate accounting entity. The operations of each
fund are accounted for with 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:
1
GOVERNMENTAL FUNDS:
General Fund - The General Fund is the general operating fund of the City. It is 1
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 1
resources to be used for the acquisition or construction of major capital facilities,
other than those financed by proprietary funds.
PROPRIETARY FUNDS: 1
Enterprise Funds - Enterprise Funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises - where 1
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.
1
26
1
1
1 Note 1: Summary of Significant Accountina Policies (confd)
C. Fixed Assets and Lona -Term Liabilities,
The accounting and reporting of fixed assets and Tong -term liabilities associated
1 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.
1 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.
1 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
1 as follows:
' Water & Sewer Mains & Lines 100 years
Buildings and Structures 20-40 years
Water Wells and Storage Tanks 15 -50 years
t 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.
1
1 27
1
Note 1: Summary of Sianificant Accounting Policies (cont'd) 1
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 r
ope ations 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 Accountina
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.
1
Major revenues that are susceptible to accrual include taxes, special assessments,
intergovernmental revenues, charges for services, and investment earnings. Major
1
revenues that are not susceptible to accrual include licenses and permits, fees, and
miscellaneous revenues; such revenues are recorded only as received because
they are not measurable until collected. Interest on special assessments is
recognized as revenue when due, net of delinquencies.
Expenditures are generally recognized under the modified accrual basis of
1
accounting when the related fund liability is incurred, except for principal and
interest on general long -term debt which is recognized when due.
All ro rieta funds are accounted for using the accrual basis of accounting. Their
p p rY g 9
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. Budaets and Budaetary Accountina
The City follows these procedures establishing the budgetary data reflected in the
financial statements:
1. In August, the City Manager submits to the City Council proposed operating
budgets for the fiscal year commencing the following January. The operating
budgets include expenditures and the means of financing them.
2. The County mails individual property tax notices showing the taxes which would
result from the proposed budgets of all taxing units to each property in November.
1
28 1
II ' ' Note 1: Summary of Significant Accounting Policies (cont'd)
•
3. Public hearings are conducted to obtain taxpayer comments.
1 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 emental 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 Project Funds. Formal budgetary integration is not employed for Debt
' Service Funds because effective budgetary control is alternatively achieved through
general obligation bond indenture provisions. Budgetary control for Capital Projects
Funds is accomplished through the use of project controls and project - length
budgets.
9. Budgets are adopted on a basis consistent with generally accepted accounting
principles. Annual appropriated budgets are adopted for all governmental funds
except for Debt Service Funds and the project - length Capital Project Funds.
10. Budgetary control is maintained at the department level for the General Fund
and at the fund level for all other governmental funds that adopt annual budgets.
' 11. Budgeted amounts are as originally adopted, or as amended by the City
Council. Individual and aggregate amendments were not material in relation to the
original appropriations.
F. Investments
Cash balances from all funds are n available in
combined and invested to the extent a
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. All commercial paper
and certificates of deposit with a maturity of one year or less when purchased are
1 29
1
1
Note 1: Summary of Significant Accounting Policies (cont'd)
stated at amortized cost which approximates market value. All highly liquid
unrestricted investments with a maturity of three months or Tess when purchased
are considered to be cash equivalents.
1
G. Inventory
Inventories in the ro rieta funds are valued at cost, using the weighted average
p p ry g e 9 9
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 Pay '
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 Equity '
Contributed capital is recorded in proprietary funds that have received capital grants
or contributions from developers, customers, or other funds.
Reserves represent those portions of fund equity not 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 1
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.
1
30
1
' Note 1: Summary of Sianificant Accounting Policies lcont'dl
Taxes which 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, 1999,
' the City has recorded $250,233 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 generally accepted accounting principles. Interfund eliminations
have not been made in the aggregation of this data.
L. Reclassification
' Certain account balances were reclassified for the year ended December 31, 1998.
These reclassifications, which did not require a restatement of fund balance, were
' adjusted for comparability to the financial statements for the year ended
December 31, 1999, and must be considered when comparing the financial
statements of this report with those of prior reports.
' The change involves the reclassification of water meters purchased in the Water
g p
Utility Fund from cost of sales to supply expense. The reclassification increases
1998 sales and supply expense amounts by $50,435.
' M. New Accountina 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.
' 31
Note 2: Cash and Investments
A. Deposits 1
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, 1999 the carrying amount of the City's demand deposits was
$(203,887) and the bank balance was $270,792. 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 Cateaory
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.
1
1
1
1
32 '
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.
1 c General obligations of the State of Minnesota or any of its
municipalities.
' d Banker's acceptances of United States banks eligible for purchase by
the Federal Reserve System.
e Commercial paper issued by United States corporations or their
Canadian subsidiaries, of the highest quality, and maturing in 270
days or less.
f Repurchase or reverse repurchase agreements with banks that are
' members of the Federal Reserve System with capitalization
exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or
1 certain Minnesota securities broker - dealers.
g Future contracts sold under authority of Minnesota Statutes 471.56,
subdivision 5,
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, 1999, 33% matures within 1 year, another 22% in the
second year, 9% in the third year, 21% in the fourth year, 3% in the fifth year, and
the last 12% in the sixth through the tenth years.
1
1 33
1
Note 2: Cash and Investments (cont'd) 1
The City's investments are categorized below to give an indication of the
1
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 I
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
I
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
I
money market fund are not categorized as to custodial credit risk.
1
Balances at December 31, 1999:
Carrying
I
Credit Risk Category Amount/
Securities Type 1 2 3 Fair Value
nts - Categorized: '
Investme
U.S. Government $12,304,330 $12,304,330 I
Federal agencies 10,736,097 10,736,097
Commercial paper 6,181,184 6,181,184
$29,221,611 $ - $ - 29,221,611 1
Investments - Not categorized: 1
Money market funds 5,110,594
Certificates of deposit 882,786
Cash in escrow for refunding bonds 1,550,740
Total Investments 36,765,731 I
Cash 283,425
1 Total Cash, Cash Equivalents, and Investments $37,049,156
1
1
34
1
I Note 2: Cash and Investments (cont'd)
SUMMARY OF CASH AND INVESTMENTS
I Balances at December 31, 1999
1 Investments: Carrying
Amount/
I Investment Type Interest Rate Maturity Fair Value
U.S. Treasury notes 4.25 - 7.75% 2000 - 2003 $12,304,330
Federal Home Loan Mortgage
I bonds 5.125 - 6.5% 2000 - 2008 6,385,677
Federal National Mortgage
Association bonds 5.75 - 7.1 % 2000 - 2009 4,350,420
1
Commercial paper Various 2000 6,181,184
I Total Investments $29,221,611
Deposits:
I Minnesota Municipal Money Market Fund, Insight Investment
P Y � g
I Management, Minneapolis, Minnesota 4,270,183
Dreyfus General Money Market Fund, Marquette Trust,
Minneapolis, Minnesota 765,427
I Money Market Fund, Norwest Bank, Minnesota 70,236
Money Market Fund, First Trust, St. Paul, Minnesota 4,748
Certificates of Deposit 882,786
1 Bond Refunding Escrow - Norwest Bank 1,550,740
I Marquette Bank Brookdale, Brooklyn Center, Minnesota 270,792
Change funds 12,633
1 Total Deposits $7,827,545
Total Cash, Cash Equivalents, and Investments $37,049,156
1
1 From Exhibit 1, COMBINED BALANCE SHEET
Cash and cash equivalents $9,325,126
Investments 27,724,030
I $37,049,156
1
1 35
1
Note 3: Fixed Assets
I
Changes in the General Fixed Assets Account Group during 1999 were as follows:
Balance Balance 1
Jan. 1, 1999 Additions Disposals Dec. 31, 1999
Land $2,473,864 $2,473,864 I
Buildings & Improvements 8,776,453 $6,090,518 $150,247 14,716,724
Park Improvements 3,354,926 276,113 30,798 3,600,241
Furniture & Fixtures 1,360,475 1,360,475
I
Departmental Equipment 1,078,008 205,357 73,255 1,210,110
TOTAL GENERAL FIXED I
ASSETS $17,043,726 $6,571,988 $254,300 $23,361,414
The following is a summary of proprietary fund -type fixed assets at December 31, 1999: I
Internal
I
Enterprise Service
Funds Funds
Land $3,299,529
I
Land Improvements 501,671
Buildings & Improvements 20,400,437
Mains & Lines 30,512,514
I
Departmental Equipment 1,476,073 $5,583,067
Total 56,190,224 5,583,067
I
Less accumulated depreciation (11,614,245) (2,556,258)
Net $44,575,979 $3,026,809
1
Note 4: Contributed Capital
1
During 1999 contributed capital changed by the following amounts:
Internal
I
Enterprise Service
Funds Funds
Additions:
I
Improvement construction $1,313,888
Deductions: I
Depreciation on contributed assets (318,420) ($145,827)
Net change 995,468 (145,827)
I
Contributed Capital, January 1, 1999 21,938,312 3,320,353
Contributed Capital, December 31, 1999 3 174 526
p 9 $22,933,780 $ , 1
36 1
1
Note 5: Operating Leases
During 1999, 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 was to end in March 2000, but has subsequently been extended for one
year to March 2001. The other is a noncancelable two year lease ending in May
2000, which has been subsequently extended through July 2000. This lease will
be allowed to expire as the store is expected to be moving 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; the effective start date is dependent on
construction completion. These leases provide for minimum rent payments, plus
a pro -rata share of common area expenses. In addition, the latter lease requires
1 additional lease payments if agreed upon revenue thresholds are attained. Total
rental expense under the lease agreements for the years ended December 31,
1999 and 1998 was $69,922 and $55,003, respectively. Future minimum rent
1 payments under noncancelable leases are as follows:
Year Endina Amount
1 2000 $ 78,179
2001 98,169
2002 -2004 91,350/yr.
2005 95,025
2006 -2009 100,170/yr.
2010 58.433
$ 1.004.536
The Earle Brown Heritage Center Fund, which operates as an enterprise fund,
leased space to two tenants in 1999. One lease is for a ten year period
commencing January 1, 1999. In addition, 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:
1 1999 1998
Rental Revenues $ 51,538 $ 30,797
' Rental Expenditures $ 32,338 $ 52,587
Future minimum rentals to be received are as follows:
1 Cash Trade -Out
Year Endina Amount Amount
' 2000 $ 37,338 $ 22,800
2001 -2002 $ 38,625/yr.
2003 -2004 $ 39,912/yr.
' 2005 -2006 $ 41,200/yr.
2007 -2008 $ 42,488/yr.
1 37
1
Note 6: Lona -Term Debt I
The City's Tong -term debt includes general obligation bonds, tax increment bonds, and
I
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.
1
The following is a summary of bond transactions for the year ended December 31,
1999:
1
General Tax Special Storm Sewer
I
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds - Total
Bonds payable
1
January 1 $11,430,000 $11,585,000 $4,740,000 $1,400,000 $29,155,000
Bonds issued 1,585,000 1,585,000
Bonds retired 515,000 1,165,000 405,000 170,000 2,255,000
1
Bonds payable
December 31 $10,915,000 $10,420,000 $5,920,000 $1,230,000 $28,485,000
I
The annual requirements to amortize all outstanding debt as of December 31, 1999,
I
including interest of $7,267,874, are as follows:
General Tax Special Storm Sewer
I
Obligation Increment Assessment Revenue
Bonds Bonds Bonds Bonds Total
2000 $2,579,981 $1,875,554 $766,972 $239,110 $5,461,617 1
2001 1,032,651 1,969,409 929,966 239,950 4,171,976
2002 1,030,749 1,973,893 999,727 240,100 4,244,469 I
2003 1,027,356 1,985,412 873,614 239,540 4,125,922
2004 1,032,318 2,012,303 836,763 238,250 4,119,634
2005 on 7,248,749 3,395,000 2,749,297 236,210 13,629,256
I
$13,951,804 $13,211,571 $7,156,339 $1,433,160 $35,752,874
If special assessments are not adequate to retire the outstanding debt, the City's full I
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. t
There are a number of limitations contained in the various bond indentures. The City is
in compliance with all requirements of the indentures.
1
1
38
1
1 Note 6: Lona Term Debt lcont'd)
I Long -term debt obligations outstanding at year -end are summarized as follows:
Bond
I Payment Issue Maturity Authorized
Rates % Dates Date Date And Issued Retired Outstanding
I General Obligation Bonds
State -Aid Street Bonds 4.7 -6.7 4-01 10-01 09 -01 -91 04 -01 -06 $3,000,000 $1,245,000 $1,755,000
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
I Police and Fire Building Bonds 4.1 -4.9 2 -01 8 -01 12 -01 -97 02 -01 -13 7,900,000 325,000 7,575,000
Total $12,485,000 $1,570,000 $10,915,000
I 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 $2,825,000 $3,225,000
P 1992 Refunding Tax Increment 4.5 -5.6 2 -01 8 -01 02 -01 -92 02 -01 -03 4,270,000 1,410,000 2,860,000
1995 Taxable Tax Increment Bonds 6.0 -6.75 2 -01 8 -01 11 -01 -95 02 -01 -11 4,560,000 225,000 4,335,000
I Total $14,880,000 $4,460,000 $10,420,000
General Obligation Special Assessment Bonds
I 1994 Street Improvement Bonds 4.1 -5.5 2 -01 8 -01 08 -01 -94 02 -01 -05 $835,000 $305,000 $530,000
1995 Street Improvement Bonds 4.0 -4.9 2 -01 8 -01 11 -01 -95 02 -01 -06 780,000 210,000 570,000
1996 Street Improvement Bonds 4.2 -5.1 2 -01 8 -01 11 -01 -96 02 -01 -07 1,440,000 250,000 1,190,000
I 1997 Street Improvement Bonds 4.0 -4.7 2 -01 8 -01 12 -01 -97 02 -01 -08 1,075,000 115,000 960,000
1998 Street Improvement Bonds 3.4 -4.2 2 -01 8 -01 12 -01 -98 02 -01 -09 1,085,000 - 1,085,000
1999 Street Improvement Bonds 4.1 -5.0 2 -01 8 -01 12- 01 -99. 02 -01 -10 1,585,000 - 1,585,000
P Total $6,800,000 $880,000 $5,920,000
I 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 $600,000 $1,230,000
1 Total $1,830,000 $600,000 $1,230,000
1
1
1
1 39
1
Note 6: Lona Term Debt (cont'dl 1
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 for $54,131 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 1
on November 4, 1998. The second loan is recorded in the Water Fund for $225,208 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. 1
General
Long -Term Water
Debt Fund Total
Other long term 1
liabilities payable
January 1 $54,131 $225,208 $279,339
Liabilities issued
Liabilities retired 16,656 56,302 72,958
Other long term
liabilities payable
December 31 $37,475 $168,906 $206,381
1
Conduit debt obliaations
From time to time, the City has issued Housing Revenue Bonds and Industrial 1
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, 1999, there were five series of Housing Revenue or
u g
Industrial Revenue Bonds outstanding, with an aggregate principal amount
payable of approximately $22,230,000.
40 1
MN MI I I IIIIIIM MN NM - M I NM MI 10111 M MI NM MS MI =
Note 7: Segment Information
Segment information as of and for the year ended December 31, 1999 was as follows:
E. Brown
Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainae
Fund Fund Fund Fund Fund Fund Fund Total
Operating Revenues $3,560,613 $355,534 $3,490,692 $210,764 $1,354,179 $2,384,106 $999,867 $12,355,755
Depreciation Expense 39,821 13,847 376,209 356,572 203,019 75,843 1,065,311
Operating Income (Loss) 233,353 62,064 (425,411) (2,618) 184,418 404,939 767,462 1,224,207
Operating Grants 1,092,809 1,092,809
Operating Transfers In (Out) (75,000) 4,357 (70,643)
Net Income (Loss) 174,024 64,662 (444,287) (347) 282,508 451,495 2,090,468 2,618,523
Current Capital Contributions 1,234,880 1,234,880
Property, Plant & Equipment:
Additions 1,973 4,358 1,405,140 580,005 605,891 2,382,921 4,980,288
Deletions 79,008 6,077 85,085
Net Working Capital 593,977 10,162 (608,402) 99,595 3,087,526 1,877,998 15,129 5,075,985
Total Assets 1,043,265 1,736,298 11,528,386 100,595 15,879,489 11,783,887 9,584,684 51,656,604
Bonds and Other Long -Term
Liabilities Payable from
Operating Revenues 1,000,000 168,906 1,050,000 2,218,906
Total Equity $861,865 $670,822 $10,499,522 $99,595 $15,550,728 $11,691,781 $8,058,745 $47,433,058
1
Note 8: Reserved /Designated Fund Eauity 1
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 $132,628
Sanitary Sewer Fund - Special Assessments 4,351
Storm Drainage Fund
Debt Service 239,110
Special Assessments 33,275
Total Reserved Retained Earnings 409,364
Fund Balances:
General Fund:
1 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 2,276,608
Tax Increment Bonds - Debt Service 1,914,953
Special Assessment Bonds - Debt Service 1,475,080 1
Total Debt Service Funds 5,666,641
Capital Projects Funds: 1
Capital Improvements Fund
Advances to Other Funds 1,076,343
Municipal State Aid for Construction Fund 1
Advances to Other Funds 593,069
Total Capital Projects Funds 1,669,412
Total Reserved Fund Balances 8,418,746 1
Total Reserved Fund Equity $8,828,110
Desianated Fund Eauitv 1
General Fund:
Working Capital $5,937,168
Total General Fund $5,937,168
1
42 1
I Note 9: Interfund Receivables and Pavables
I Due from other funds and due to other funds are short -term
receivables /payables which have interest rates of 0% to 6.5 %.
Advances to other funds and advances from other funds are considered
t long -term receivables /payables. Advances have interest rates of 0% to
7% with maturities extending through the year 2017. Advances between
1 funds are offset by a fund balance reserve account and are not
expendable or available financial resources.
Due from Due to
1 Other Funds Other Funds
General Fund $ 220,122
I Special Revenue Funds:
Economic Development Authority Fund 56,213
I Tax Increment #3 Fund 30,006
Tax Increment #4 Fund $ 17,236
Capital Projects Funds:
I Capital Reserve Emergency Fund 30,303
Capital Improvements Fund 131,948
M.S.A. Construction Fund 49,737
I Special Assessments Constr. Fund 43,907
Enterprise Funds:
I Earle Brown Heritage Center Fund 545,000
Total $ 562,236 $ 562,236
I Advances to Advances from
Other Funds Other Funds
1 General Fund $ 105,074
Special Revenue Funds:
I
E.B. Farm Tax Increment Fin. Fund $ 698,143
Capital Projects Funds:
I Capital Improvements Fund 1,076,343
M.S.A. Construction Fund 593,069
1 Enterprise Funds:
Municipal Liquor Fund 26,343
Golf Course Fund 1,050,000
I Total $ 1,774,486 $ 1,774,486
1
1 43
1
Note 10: Individual Fund Disclosures
Deficit fund balances exist et necemk)er 31. 1999 in the following funds:,
Special Revenue Funds:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $656,428
Tax Increment District No. 4
Unreserved deficit fund balance $17,462
These deficits are being funded through internal borrowing and will be repaid
from future surplus tax increments.
Enterprise Funds:
1
E. Brown Heritage Center Fund $260,633
This deficit is being funded through internal borrowing and will be repaid from
1
future income of the enterprise.
Excess of Expenditures over Appropriations:
For the year ended December 31, 1999, expenditures exceeded budget at the
fund level (i.e., the legal level of budgetary control) as follows:
Special Revenue Funds: Excess
Housing and Redevelopment Authority 3
g p Y $ 215 ,
Tax Increment District No. 3 $ 57,149
Tax Increment District No. 4 $ 17,462
Police Drug Forfeiture Fund $ 20,558
City Initiatives Grant Fund $109,841
The over expenditures in the Housing and Redevelopment Authority were due
to higher property tax revenues than anticipated resulting in a larger transfer out,
but for which no budget adjustment was made. The over expenditures in the tax
increment districts resulted from higher property tax rebates than budgeted and
the creation of a new district which was not budgeted. The over expenditures
were funded by tax increment revenues. The over expenditures in the Police
Drug Forfeiture and City Initiatives Grant Funds were the result of no budgets
for the funds. The over expenditures were funded by fund revenues.
1
Note 11: Contingencies
There are a few lawsuits pending in which the City is involved. City 1
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.
1
1 44
' Note 12: Risk Manaaement
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.
However, the City did increase the deductible portion of the insurance policies
and the amount of this increase is considered immaterial to the financial
1 statements.
Note 13: Post- Emolovment Health Care Benefits
' The
City has provided post - retirement health care benefits, as per the
' requirements of a City Council resolution, for certain retirees and their
dependents since 1986. Full time employees have the option of retaining
membership in the City's health insurance plan for which the City will pay the
' single person premium until such time as the retiree is eligible for Medicare
coverage or at age 65, whichever is sooner. If the retiree desires to continue
family coverage, the additional cost for family coverage shall be paid by the
' retiree to the City. There are two methods whereby an employee can qualify
under this program. First, the employee, on the date of his /her retirement, must
meet eligibility requirements for a full retirement annuity under PERA (Note 14A)
' without reduction of benefits because of age, disability, or any other reason for
reduction. In addition, the employee must have been employed full time by the
City for the last ten consecutive years prior to the effective date of retirement.
t 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, 1999, seven employees currently participate in this
program. The cost of City paid health care premiums for the years ended
December 31, 1999 and 1998 was $16,354 and $14,861, respectively. In
' addition, the expenditures in 1999 and 1998 were increased by $140,558 and
$11,104, respectively, to account for the change in the accrued health insurance
liability. The $1,369,891 recorded as a liability reflects the City's best estimate
of the vested obligation to be funded for this program as of December 31, 1999.
•
1
1 45
1
Note 14: Defined Benefit Pension Plans - Statewide
A. Plan Description
All full -time and certain part -time employees of the City of Brooklyn Center are
Y Y Y
covered by defined benefit pension plans administered by the Public Employees
Retirement Association of Minnesota (PERA). PERA administers the Public
Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF),which are cost sharing, multiple - employer retirement plans.
These plans are established and administered in accordance with Minnesota
Statutes, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. 1
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, but before retirement benefits
begin.
1
46
Note 14: Defined Benefit Pension Plans - Statewide (cont'd)
The benefit provisions stated in the previous paragraphs of this section are
' current provisions and apply to active plan participants. Vested, terminated
employees who are entitled to benefits but are not receiving them yet, are bound
by the provisions in effect at the time they last terminated their public service.
' PERA issues a publicly available financial report that includes financial
ancial
statements and required supplementary information for PERF and PEPFF. That
report may be obtained by writing to PERA, 514 St. Peter Street, #200, St. Paul,
Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026.
' B. Funding Policy
Minnesota Statutes Chapter 353 sets the rate for employer and employee
contributions. These statutes are established and amended by the state
legislature. The City makes annual contributions to the pension plans equal to
•
the amount required by state statutes. PERF Basic Plan members and
Coordinated Plan members are required to contribute 8.75% and 4.75 %,
respectively, of their annual covered salary. PEPFF members are required to
' contribute 7.60% of their annual covered salary. The City of Brooklyn Center is
required to contribute the following percentages of annual covered payroll:
11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF
t members, and 11.40% for PEPFF members. The City's contributions to the
Public Employees Retirement Fund for the years ended December 31, 1999,
1998, 17 ,9, ,, 2,4, e.
City's contributi and 99were to the $285 Public 77 Employees $277561 Po and $ & 18 Fir e 41 Fr for the spectively yearThe s
ended December 31, 1999, 1998, and 1997 were $254,859, $269,796, and
$268,181, 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 Qenter Fire Department Relief Association
' Plan Description
l The City contributes to the Brooklyn Center Fire Department Relief Association
(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,
including financial statements and required Plan supplementary information, that
is available at the City offices.
Funding Policy and Annual Pension Cost
' The City levies property taxes at the direction of and for the benefit of the Plan
and passes through state aids allocated to the Plan, all in accordance with
enabling state statutes. The minimum tax levy obligation is the financial
I contribution requirement for the year less anticipated state aids.
1 47
1
Note 15: Pension Plan - Brooklyn Center Fire Der @rtment Relief Association (cont'd)
1
Contributions: Total contributions to the Plan in 1999 were $116,570, of which
$27,086 was levied by the City of Brooklyn Center and $89,484
I
was from the State of Minnesota. The actuarially determined
contribution based on an actuarial valuation performed at
January 1, 1997 was $96,617 which represents funding for
I
normal cost of $71,537 and administration of $25,080.
Actuarial valuation date: January 1, 2000 updated from the base year I
actuarial study as of January 1, 1999.
Actuarial cost method: Entry age normal cost method. 1
Amortization method: The Plan was fully funded as of December 31,
1999.
Remaining amortization period: None. 1
Actuarial assumptions:
Investment rate of return 7.5% compounded annually I
Projected salary increases Not applicable
Post retirement benefits None
Three -vear Trend Information I
Negative
Annual Net
I
Year Pension APC Pension
Endina Cost (APC) Contributed Obliaation
12/31/97 $108,451 $123,070 $362,882
12/31/98 $95,176 $107,215 $438,538
12/31/99 $96,617 $116,570 $789,400
1
Schedule of Fundina Proaress , I
Actuarial
Actuarial Accrued Excess of
Value of Liability (AAL) Assets Funded
I
Fiscal Assets -- Entry Age over AAL Ratio
Year. (al (b) (a -b) (a /b)
1997 $2,966,487 $2,603,605 $362,882 113.9% I
1998 $3,056,068 $2,617,530 $438,538 116.8%
1999 $3,319,342 $2,529,942 $789,400 131.2%
1998 is based I
(1 ) 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.
1
1
48
1
Note 15: Pension Plan - Brooklyn Center Fire Department Relief Association (cont'd),
(2) The Brooklyn Center Fire Department is a volunteer organization; thus no
' covered payroll exists.
Related Party Investments
1 As of December 31, 1999, the Association held no securities issued by the City
Y
or other related parties.
1
Note 16: Fund Chanaes
1 The following funds were opened durin g 1999:
' Special Revenue:
Tax Increment Financing District #4
' Debt Service:
GO Street Improvement Bonds of 1999 Fund
1 No funds were closed during 1999.
1 Note 17: Residual Eauitv Transfers
The General Fund transferred $475,000 to the Capital Improvements Capital
Projects Fund and $225,000 to the Special Assessment Construction Capital
Projects Fund. The transfers represent funds from the prior year's surplus of
revenues over expenditures. The funds will be used for future park and street
1 improvements. The amounts are not expected to be repaid and are reflected as
residual equity transfers in the City's financial statements.
1
1
1
1
1
1
1 49
1
1 City of Brooklyn Center, Minnesota
GENERAL FUND
The City of provides n Center Home Rule Charter rovides in Section 7A 1 that "there shall
be maintained in the City Treasury a classification of Funds which shall provide for a
General Fund for the payment of such expenses of the City as the Council may deem
proper, and such other funds as may be required by statute, ordinance or resolution."
The General Fund was established to account for all revenues and expenditures which are
not required to be accounted for in other funds. It has more diverse revenue sources than
other funds. These revenue sources include property taxes, licenses, permits, fines and
forfeits, intergovernmental, service charges, and investment earnings. The Fund's
1 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
d basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
1 recognized in the accounting period in which the related liability is incurred.
1
1
1
1
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1
Al 1 City of Brooklyn Center
General Fund
COMPARATIVE BALANCE SHEET 1
December 31, 1999
1
1999 1998
ASSETS 1
Cash and cash equivalents $1,218,275 $1,579,370
Investments 7,117,968 6,868,997 1
Accounts receivable 66,188 84,320
Delinquent taxes receivable 166,999 147,435
Due from other funds 220,122 120,238 1
Due from other governments 140,859 37,937
Advance to other funds 105,074 105,074 1
TOTAL ASSETS $9,035,485 $8,943,371
1
LIABILITIES AND FUND BALANCE
Liabilities: 1
Accounts payable $300,707 $397,316
Accrued salaries payable 374,450 321,940 1
Accrued vacation and sick pay 634,389 602,396
Deferred revenue - delinquent taxes 166,999 147,435 1
Deferred revenue - tax abatements 250,233 136,284
Total Liabilities 1,726,778 1,605,371 1
Fund Balance:
Reserved for advances to other funds 105,074 105,074 1
Unreserved fund balance
Designated: 1
Working capital 5,937,168 5,712,691
Appropriated to next budget 13,535
Undesignated 1,266,465 1,506,700 1
Total Fund Balance 7,308,707 7,338,000 1
TOTAL LIABILITIES AND FUND BALANCE $9,035,485 $8,943,371
1
1 51
I
A -2
I City of Brooklyn Center
General Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES,
I AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1999
1999
Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Revenues
I Property taxes $8,214,083 $8,333,440 $119,357 $7,980,066
Property tax abatements reserve (113,949) (113,949) (30,322)
Licenses and permits 418,628 763,960 345,332 549,067
Intergovernmental 3,894,372 3,911,480 17,108 3,875,392
Charges for services 862,206 739,054 (123,152) 771,614
Court fines 204,000 205,460 1,460 193,688
Investment earnings 280,000 346,382 66,382 377,826
I Change in fair value of investments (158,708) (158,708) 35,118
Miscellaneous 12,000 6,679 (5,321) 12,375
I Total Revenues 13,885,289 14,033,798 148,509 13,764,824
Expenditures
I General government 2,357,773 2,257,957 (99,816) 2,133,829
Public safety 5,433,832 5,336,622 (97,210) 5,137,108
Public works 2,016,754 1,904,205 (112,549) 1,955,108
Community services 84,910 83,295 (1,615) 73,066
I Parks and recreation 2,232,090 2,132,511 (99,579) 2,075,180
Economic development 385,250 383,927 (1,323) 313,792
Non departmental 534,653 343,925 (190,728) 312,625
I Administrative Services Reimbursement (737,487) (670,390) 67,097 (731,737)
Total Expenditures 12,307,775 11,772,052 (535,723) 11,268,971
I Excess or Deficiency ( -) of
Revenues Over Expenditures 1,577,514 2,261,746 684,232 2,495,853
1 Other Financing Sources or Uses ( -)
Operating transfers out (1,591,049) (1,591,039) 10 (1,427,001)
I Total Other Financing
Sources or Uses ( -) (1,591,049) (1,591,039) 10 (1,427,001)
I Excess or Deficiency ( -) of Revenues
and Other Financing Sources Over
Expenditures and Other Financing Uses (13,535) 670,707 684,242 1,068,852
I Fund Balance January 1 7,338,000 7,338,000 6,619,148
Equity Transfers Out (700,000) (700,000) (350,000)
I Fund Balance December 31 $7,324,465 $7,308,707 ($15,758) $7,338,000
I 52
1
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(Continued next page)
City of Brooklyn Center I
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
I
BUDGET AND ACTUAL
For the Year Ended December 31, 1999
1999 '
Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Ad Valorem Taxes
Gross property taxes $7,404,933 $7,525,118 $120,185 $7,328,286
Penalties and interest (1,994) (1,994) (10,524)
Lodging tax 808,150 808,266 116 660,613
Special assessments 1,000 2,050 1,050 1,691 1
Total Taxes 8,214,083 8,333,440 119,357 7,980,066
Reserve for Property Tax Abatements 1
Tax abatements under litigation (113,949) (113,949) (30,322)
Total Property Tax Abatements (113,949) (113,949) (30,322) 1
Licenses and Permits
I Liquor and beer 142,358 108,135 (34,223) 103,063
Building permits 150,000 482,144 332,144 280,851
Mechanical permits 30,000 58,365 28,365 46,563
Sewer and water permits 1,000 1,741 741 995
I
Plumbing permits 18,000 45,743 27,743 29,508
Garbage licenses 3,225 2,845 (380) 3,060
Taxicab licenses 2,700 175 (2,525) 625
I
Mechanical licenses 4,500 4,154 (346) 5,102
Pawn shop licenses 8,000 12,750 4,750 12,100
Service station licenses 2,995 3,933 938 2,770 I
Vehicle dealer licenses 1,575 1,575 1,400
Bowling licenses 700 720 20 1,970
Cigarette licenses 3,900 3,825 (75) 3,417 I
Sign permits - 2,500 2,925 425 3,152
Rental dwelling permits 28,215 19,182 (9,033) 38,209
Amusement licenses 8,960 7,432 (1,528) 7,495
I Dog licenses 8,000 5,836 (2,164) 5,909
Miscellaneous business license 2,000 2,480 480 2,878
Total Licenses and Permits 418,628 763,960 345,332 549,067
I
Intergovernmental
Federal grants: I
Miscellaneous grants 5,000 5,351 351 5,208
Total Federal Grants $5,000 $5,351 $351 $5,208
I
1 53
1 1
S -1
(Continued from prior page)
1 City of Brooklyn Center
General Fund
I SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1999
1
1999
I Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Intergovernmental (continued)
1
State grants:
Local government aid $2,069,744 $2,069,744 $2,012,749
Local performance aid 34,529 34,529 37,778
I Homestead credit aid 1,307,465 1,307,465 1,308,965
Police pension aid 241,400 248,748 $7,348 260,931
PERA aid 34,365 34,365 34,365
I Fireperson pension aid 84,619 89,484 4,865 87,036
Police training 13,700 14,156 456 13,293
E -911 phone service 12,750 17,019 4,269 15,606
I Street maintenance aid 90,000 90,000 90,000
Miscellaneous grants 800 619 (181) 9,461
Total State Grants 3,889,372 3,906,129 16,757 3,870,184
1 Total Intergovernmental 3,894,372 3,911,480 17,108 3,875,392
I Charges for Services
General government charges 23,000 28,058 5,058 31,804
Public safety charges 23,050 41,864 18,814 31,980
Recreation fees 816,156 669,132 (147,024) 707,830
1 Total Charges a ges for Services 862,206 739,054 (123,152) 771,614
I Court Fines
Fines 204,000 205,460 1,460 193,688
Total Court Fines 204,000 205,460 1,460 193,688
I Miscellaneous
Interest on investments 280,000 346,382 66,382 377,826
I 'I 1 Change in fair value of investments (158,708) (158,708) 35,118
Other 12,000 6,679 (5,321) 12,375
I Total Miscellaneous 292,000 194,353 (97,647) 425,319
Total Revenues $13,885,289 $14,033,798 $148,509 $13,764,824
1
' 1
1 54
S -2 I
City of Brooklyn Center (Continued next page)
General Fund
I
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
For the Year Ended December 31, 1999
1
1999
Actual Over
I
or Under( -) 1998
Budget Actual Budget Actual
General Government
Mayor and Council:
Personal services $40,323 $40,435 $112 $39,337
Supplies 800 1,566 766 725
Services and other charges 79,480 72,731 (6,749) 69,395
Total Mayor and Council 120,603 114,732 (5,871) 109,457
Administrative Office: I
Personal services 344,659 337,409 (7,250) 311,846
Supplies 1,700 4,054 2,354 4,651
Services and other charges 80,150 77,576 (2,574) 89,432
I
Capital outlay 2,000 1,934 (66) 5,435
Total Administrative Office 428,509 420,973 (7,536) 411,364
Elections and Voter Registration:
I
Personal services 50,066 44,271 (5,795) 47,803
Supplies 900 (900) 941
Services and other charges 6,200 623 (5,577) 4,876
I
Total Elections and Voter Registration 57,166 44,894 (12,272) 53,620
Assessor's Office:
I
Personal services 219,556 209,435 (10,121) 205,157
Supplies 2,500 2,416 (84) 4,605
Services and other charges 34,664 30,329 (4,335) 29,382
I
Capital outlay 5,900 6,167 267 2,866
Total Assessor's Office 262,620 248,347 (14,273) 242,010
Finance:
1
Personal services 393,879 368,311 (25,568) 376,102
Supplies 6,100 6,020 (80) 4,332
Services and other charges 8,295 6,833 (1,462) 6,309
I
Capital outlay 6,500 5,111 (1,389) 12,043
Total Finance 414,774 386,275 (28,499) 398,786
I
Legal:
Services and other charges 268,900 268,388 (512) 188,756
Total Legal 268,900 268,388 (512) 188,756
Government Buildings: '
Personal services 214,871 192,470 (22,401) 183,791
Supplies 65,650 74,567 8,917 59,074
Services and other charges 286,224 271,942 (14,282) 261,692
Capital outlay 10,450 23,929 13,479 7,982
I
Total Government Buildings $577,195 $562,908 ($14,287) $512,539
1
55
1 S -2
City of Brooklyn Center (Continued next page)
I General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
I For the Year Ended December 31, 1999
1999
I Actual Over
or Under( -) 1998
Budget Actual Budget Actual
I General Government (continued)
Data Processing:
Personal services $67,383 $58,387 ($8,996) $59,436
Supplies 10,000 7,692 (2,308) 9,325
I Services and other charges 130,323 128,858 (1,465) 121,788
Capital outlay 20,300 16,503 (3,797) 26,748
I Total Data Processing 228,006 211,440 (16,566) 217,297
Total General Government 2,357,773 2,257,957 (99,816) 2,133,829
I Public Safety
Police Protection:
Personal services 3,644,892 3,584,414 (60,478) 3,437,383
I Supplies 67,823 65,959 (1,864) 72,336
Services and other charges 669,995 647,662 (22,333) 588,678
Capital outlay 27,450 27,686 236 32,742
I Total Police Protection 4,410,160 4,325,721 (84,439) 4,131,139
Fire Protection:
I Personal services 371,541 360,714 (10,827) 344,436
Supplies 35,300 33,649 (1,651) 34,773
Services and other charges 147,761 147,816 55 192,372
Capital outlay 43,000 54,642 11,642 43,639
1 Total Fire Protection 597,602 596,821 (781) 615,220
Protective Inspection:
1 Personal services 327,528 333,041 5,513 318,011
Supplies 4,200 3,249 (951) 2,495
Services and other charges 39,658 27,779 (11,879) 26,100
I Capital outlay 7,500 7,500
Total Protective Inspection 378,886 371,569 (7,317) 346,606
I Emergency Preparedness:
Personal services 38,165 32,587 (5,578) 35,292
Supplies 1,500 937 (563) 1,385
I Services and other charges 7,519 8,987 1,468 7,466
Total Emergency Preparedness 47,184 42,511 (4,673) 44,143
1 Total Public Safety $5,433,832 $5,336,622 ($97,210) $5,137,108
1
I 56
1
S -2
City of Brooklyn Center (Continued next page) 1
General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL 1
For the Year Ended December 31, 1999
1999 1
Actual Over
or Under( -) 1998
Budget Actual Budget Actual 1
Public Works
Engineering Department:
Personal services $583,767 $578,709 ($5,058) $541,017
Supplies 5,150 4,932 (218) 4,801 1
Services and other charges 27,180 21,674 (5,506) 31,688
Capital outlay 17,700 16,955 (745) 10,207
Total Engineering Department 633,797 622,270 (11,527) 587,713 1
Street Department:
Personal services 584,921 558,924 (25,997) 599,138 1
Supplies 168,450 132,860 (35,590) 128,181
Services and other charges 560,006 500,322 (59,684) 637,300
Capital outlay 69,580 89,829 20,249 2,776 1
Total Street Department 1,382,957 1,281,935 (101,022) 1,367,395
Total Public Works 2,016,754 1,904,205 (112,549) 1,955,108 1
Community Services
Social Services:
I Service and other charges 84,910 83,295 (1,615) 73,066
Total Community Services 84,910 83,295 (1,615) 73,066
Parks and Recreation 1
Administration:
Personal services 367,216 371,701 4,485 358,500
Supplies 16,600 12,856 (3,744) 16,528
I
Services and other charges 52,650 43,947 (8,703) 62,312
Capital outlay 21,400 21,924 524
Total Administration 457,866 450,428 (7,438) 437,340 1
Adult Programs:
Personal services 81,270 74,065 (7,205) 91,711 1
Supplies 26,415 28,182 1,767 25,557
Services and other charges 126,538 107,143 (19,395) 108,862
Total Adult Programs 234,223 209,390 (24,833) 226,130 1
Teen Programs:
Personal services 12,327 2,977 (9,350) 5,950 1
Supplies 1,450 58 (1,392) 1,206
Services and other charges 4,300 1,308 (2,992) 2,634
Total Teen Programs $18,077 $4,343 ($13,734) $9,790 1
1
57
1 S -2
City of Brooklyn Center (Continued next page)
I General Fund
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1999
I
Actual Over
or Under( -) 1998
Budget Actual Budget Actual
I Parks and Recreation (continued)
Children's Programs:
Personal services $93,837 $82,818 ($11,019) $87,022
Supplies 8,950 13,170 4,220 10,194
I Services and other charges 5,305 5,869 564 4,932
Total Children's Programs 108,092 101,857 (6,235) 102,148
I General Programs:
Personal services 22,106 23,053 947 22,938
Supplies 200 4 (196) 49
I Services and other charges 32,782 31,198 (1,584) 27,649
Total General Programs 55,088 54,255 (833) 50,636
I Community Center:
Personal services 391,579 374,111 (17,468) 365,912
Supplies 48,000 50,603 2,603 19,114
I Services and other charges 54,687 53,331 (1,356) 80,572
Capital outlay 4,887 4,887
I Total Community Center 494,266 482,932 (11,334) 465,598
Park Maintenance:
Personal services 531,772 504,118 (27,654) 482,562
I Supplies 61,250 47,986 (13,264) 53,859
Services and other charges 240,256 242,612 2,356 209,025
Capital outlay 31,200 34,590 3,390 38,092
1 Total Park Maintenance 864,478 829,306 (35,172) 783,538
Total Parks and Recreation 2,232,090 2,132,511 (99,579) 2,075,180
I Economic Development
Convention Bureau:
I Services and other charges 385,250 383,927 (1,323) 313,792
Total Economic Development 385,250 383,927 (1,323) 313,792
I Nondeoartmental
Expenditures not Charged to
Departments:
Personal services 47,654 40,986 (6,668) 2,883
I
Supplies 27,000 26,276 (724) 27,852
Services and other charges 439,999 258,840 (181,159) 277,336
Capital outlay 20,000 17,823 (2,177) 4,554
I Total Nondepartmental $534,653 $343,925 ($190,728) $312,625
1 58
S -2 I
City of Brooklyn Center (Continued from prior page)
General Fund
I
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1999
I Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Administrative Service Reimbursement
Charged to other funds ($737,487) ($670,390) $67,097 ($731,737)
Total Administrative Service Reimbursement (737,487) (670,390) 67,097 (731,737)
I Other Financing Uses
Operating transfers out:
Special Assessment Construction Fund 424,917 424,917 394,197 I
Earle Brown Heritage Center Fund 4,358 4,357 (1)
Employee Retirement Fund 120,000 120,000
Special Assessment Bonds Debt Service Fund 262,279 262,274 (5) 257,270
I Police & Fire Building Debt Service Fund 779,495 779,491 (4) 775,534
Total Other Financing Uses 1,591,049 1,591,039 (10) 1,427,001
Total Expenditures and Other Financing Uses $13,898,824 $13,363,091 ($535,733) $12,695,972 1
1
1
1
1
1
1
1
1
1
1
59
1
City of Brooklyn Center, Minnesota
1
SPECIAL REVENUE FUNDS
I The Special Revenue Funds s are established to account for revenues derived from taxes and /or other specific
revenue sources. These resources are usually restricted by statute, City Charter or ordinance to finance specific
1 City functions or activities.
This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in the accounting
I period in which they become available and measurable. Expenditures are recognized in the accounting period
in which the related liability is incurred.
Housina and Redevelopment Authority Fund (H.R.A.): This fund has authority to levy an ad valorem property tax
I for the purpose of conducting housing and redevelopment projects. These projects are now done in the E.D.A.
Fund and all tax proceeds are transferred to that fund.
I Economic Develooment 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 activities which previously were done
by the H.R.A., plus 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.
I 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
also were issued for that purpose.
I 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 also
were issued for that purpose.
1 Police Drua Forfeiture Fund: This fund was established to account for property and /or cash seized by police
personnel.
I 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 where accounting for project costs takes place.
I City Initiatives Grant Fund: Revenues and expenditures from grants received from other entities are accounted
for in this fund. Grant programs for 1999 include several public safety grants, an after school enrichment
recreation grant and a local planning assistance grant.
1 .
1
1
1
1 60
1
City of Brooklyn Center
Special Revenue Funds
1
COMBINING BALANCE SHEET
December 31, 1999
I
Economic Earle Brown Tax
I
Development Tax Incr. Increment
Authority Financing District
Fund District No. 3
I
ASSETS
Cash and cash equivalents $309,264 $9,597 $165,087
I
Investments 1,803,505 55,964 962,724
Accounts receivable 12,188
Delinquent taxes receivable 7,481 1
Due from other funds 56,213 30,006
Due from other governments
TOTAL ASSETS $2,188,651 $65,561 $1,157,817 I
LIABILITIES AND FUND BALANCES (DEFICITS) I
Liabilities: t
Accounts payable $17,518 $23,846 $17,783
Due to other funds
Accrued salaries payable 6,584
I
Accrued vacation and sick pay 18,390
Advances from other funds 698,143
Deferred revenue 7,481
I
Total Liabilities 49,973 721,989 17,783
Fund Balances (Deficits): 1
Reserved:
Bond proceeds 977,619 '
Unreserved 1,161,059 (656,428) 1,140,034
Total Fund Balances (Deficits) 2,138,678 (656,428) 1,140,034
I
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $2,188,651 $65,561 $1,157,817
I
1
1
61 1
1 B -1
1
' 1
1 Tax
I ncrement Police Drug City
District Forfeiture Initiatives Totals
1 No. 4 Fund Grant Fund 1999 1998
I $3,798 $10,024 $497,770 $657,742
22,147 58,459 2,902,799 2,871,342
12,188 32,467
1 7,481 6,359
86,219 214,891
1,991 1,991 174,866
1 $0 $25,945 $70,474 $3,508,448 $3,957,667
1
1 $226 $63 $59,436 $102,542
17,236 17,236 171,573
1 6,584 4,849
1 8,390 21,904
698,143 698,143
1 7,481 6,359
17,462 63 807,270 1,005,370
1
I 977,619 2,481,353
(17,462) $25,945 70,411 1,723,559 470,944
1 (17,462) 25,945 70,411 2,701,178 2,952,297
1 $0 $25,945 $70,474 $3,508,448 $3,957,667
1
1
1 62
1
City of Brooklyn Center
1
Special Revenue Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, t
AND CHANGES IN FUND BALANCE
For the Year Ended December 31, 1999
Housing 1
and Economic Earle Brown Tax
Redevelopment Development Tax Increment Increment I
Authority Authority Financing District
Fund Fund District No. 3
Revenues I
Property taxes $137,711 $193,489 $1,337,190 $1,565,400
Intergovernmental 18,304 1,454,756
Investment earnings 140,557 17,862 37,832
I Change in fair value of investments (73,789) (8,145) (14,174)
Sale of property 2,411,987
Miscellaneous 87,148
Total Revenues 156,015 4,214,148 1,346,907 1,589,058 I
Expenditures
I
Personal services 172,309
Supplies 583
Services and other charges 1,821,775 1,898 266,950
I
Capital outlay 3,512,952
Interest
Total Expenditures 5,507,619 1,898 266,950 I
Excess or Deficiency ( -) of Revenues I
Over Expenditures 156,015 (1,293,471) 1,345,009 1,322,108
Other Financing Sources or Uses( -)
I Operating transfers in 233,751
Operating transfers out (156,015) (1,330,000) (550,000)
Total Other Financing Sources or Uses( -) (156,015) 233,751 (1,330,000) (550,000)
I
Excess or Deficiency ( -) of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses (1,059,720) 15,009 772,108
Fund Balances (Deficits) January 1 3,198,398 (671,437) 367,926
Fund Balances (Deficits) December 31 $0 $2,138,678 ($656,428) $1,140,034 1
1
63
1
1
1 B -2
1
1
Tax Police City
I Increment
District Drug Community
Fo Initiatives
Forfeiture Development Grant Totals
No. 4 Fund Block Grant Fund 1999 1998
I $3,233,790 $2,237,671
$77,736 $112,852 1,663,648 359,393
I $1,714 2,908 200,873 257,154
(634) (714) (97,456) 23,773
2,411,987 221,040
1 20,008 33,211 140,367 54,305
21,088 77,736 148,257 7,553,209 3,153,336
1
13,935 186,244 224,397
I
8,788 294 9,665 2,184
$17,125 2,574 95,612 2,205,934 473,806
9,196 3,522,148 321,252
337 337 1,393
I 17,462 20,558 109,841 5,924,328 1,023,032
1 (17,462) 530 77,736 38,416 1,628,881 2,130,304
1 233,751 294,197
(77,736) (2,113,751) (2,644,197)
1 (77,736) (1,880,000) (2,350,000)
1
(17,462) 530 38,416 (251,119) (219,696)
1 25,415 31,995 2,952,297 3,171,993
I ($17,462) $25,945 $0 $70,411 $2,701,178 $2,952,297
1
1 64
1 1
BB = 3
I
City of Brooklyn Center
Housing and Redevelopment Authority Fund I
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1999 1
1999 1
Actual Over
or Under( -) 1998
I
Budget Actual Budget Actual
Revenues
Property taxes $134,496 $137,711 $3,215 $104,294 I
Intergovernmental 18,304 18,304 18,330
Total Revenues 152,800 156,015 3,215 122,624
I
Other Financing Uses I
Operating transfers out (152,800) (156,015) (3,215) (122,624)
Excess or Deficiency ( -) of 1
Revenues Over Other Financing Uses
Fund Balance January 1
I
Fund Balance December 31 $0 $0 $0 $0
I
1
1
1
1
1
1
65 1
1
1 BB = 4
City of Brooklyn Center
1 Economic Development Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1 1999
Actual Over
1 or Under( -) 1998
Budget Actual Budget Actual
Revenues
I Property taxes $189,051 $193,489 $4,438 $171,088
Intergovernmental 1,460,000 1,454,756 (5,244)
Investment earnings 150,000 140,557 (9,443) 205,426
I Change in fair value of investments (73,789)
2 (73,789) 19,094
Sale of property 2,420,000 ,411,987 (8,013) 221,040
Miscellaneous 24,000 87,148 63,148 37,603
Total Revenues 4 243 051 4 214 148 28
1 ( 903) 654,251
I Expenditures
Personal services 177,892 172,309 (5,583) 174,785
Supplies 1,900 583 (1,317) 131
1 Services and other charges 2,036,318 1,821,775 (214,543) 262,360
Capital outlays 3,900,550 3,512,952 (387,598) 266,619
1 Total Expenditures 6,116,660 5,507,619 (609,041) 703,895
Excess or Deficiency ( -) of
1 Revenues Over Expenditures (1,873,609) (1,293,471) 580,138 (49,644)
Other Financing Sources
1 Operating transfers in 1,873,609 233,751 (1,639,858) 294,197
Operating transfers out (500,000)
1 Total Other Financing Sources 1,873,609 233,751 (1,639,858) (205,803)
I Excess or Deficiency ( -) of
Revenues and Other Financing Sources
Over Expenditures (1,059,720) (1,059,720) (255,447)
I Fund Balance January 1 3,198,398 3,198,398 3,453,845
1 Fund Balance December 31 $3,198,398 $2,138,678 ($1,059,720) $3,198,398
1 66
1
BB = 5
I
City of Brooklyn Center
Earle Brown Farm Tax Increment District Fund I
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1999
1
1999
1
Actual Over
or Under( -) 1998
I
Budget Actual Budget Actual
Revenues
Property taxes $1,226,212 $1,337,190 $110,978 $1,145,815
I
Investment earnings 17,862 17,862 23,611
Change in fair value of investments (8,145) (8,145) 2,195
Total Revenues 1,226,212 1,346,907 120,695 1,171,621 I
Expenditures I
Services and other charges 2,000 1,898 (102) 3,184
Total Expenditures 2,000 1,898 (102) 3,184
I
Excess or Deficiency ( -) of
I Revenues Over Expenditures 1,224,212 1,345,009 120,797 1,168,437
Other Financing Uses ( -)
Operating transfers out (1,330,000) (1,330,000) (1,280,000)
1
Total Other Financing Uses (1,330,000) (1,330,000) (1,280,000)
Excess or Deficiency ( -) of
Revenues Over Expenditures 1
and Other Financing Uses (105,788) 15,009 120,797 (111,563)
Fund Balance (Deficit) January 1 (671,437) (671,437) (559,874)
1
Fund Balance (Deficit) December 31 ($777,225) ($656,428) $120,797 ($671,437)
1
1
67 1
1
1 BB = 6
City of Brooklyn Center
1 STATEMENT OF Tax Increment District No. 3 Fund
REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1 1999
Actual Over
I or Under( -) 1998
Budget Actual
Revenues
1 Property taxes $1,308,002 $1,565,400 $257,398 $816,474
Investment earnings 37,832 37,832 23,818
Change in fair value of investments (14,174) (14,174) 2,214
1 Total Revenues 1,308,002 1,589,058 281,056 842,506
1 Expenditures
Services and other charges 209,801 266,950 57,149 139,270
Total Expenditures 209,801 266,950 57,149 139,270
1
Excess or Deficiency ( -) of
1 Revenues Over Expenditures 1,098,201 1,322,108 223,907 703,236
Other Financing Uses l -1
1
Operating transfers out (550,000) (550,000) (570,000)
Total Other Financing Uses (550,000) (550,000) (570,000)
Excess or Deficiency ( -) of
I Revenues Over Expenditures
and Other Financing Uses 548,201 772,108 223,907 133,236
1 Fund Balance January 1 367,926 367,926 234,690
Fund Balance December 31 $916,127 $1,140,034 $223,907 $367,926
1
1
1
1 68
1
B7
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, 1999 1
1999 1
Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Revenues
Property taxes
Investment earnings
Change in fair value of investments
Total Revenues 1
Expenditures
Services and other charges $17,125 $17,125
Interest 337 337
Total Expenditures 17,462 17,462
Excess or Deficiency ( -) of 1
Revenues Over Expenditures (17,462) (17,462)
Fund Balance January 1 1
Fund Balance December 31 ($17,462) ($17,462)
1
1
1
1
1
69 1
1
1 BB = 8
City of Brooklyn Center
1 Police Drug Forfeiture Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1 1999
Actual Over
I or Under( -) 1998
Budget Actual Budget Actual
Revenues
I Forfeited drug money $20,008 $20,008 $14,307
Investment earnings 1,714 1,714 945
Change in fair value of investments (634) (634) 88
I Total Revenues 21,088 21,088 15,340
I Expenditures
Supplies 8,788 8,788
Services and other charges 2,574 2,574
I Capital outlays 9,196 9,196
Total Expenditures 20,558 20,558
1
Excess or Deficiency ( -) of
I Revenues Over Expenditures 530 530 15,340
Fund Balance January 1 $25,415 25,415 10,075
1 Equity Transfer In
1 Fund Balance December 31 $25,415 $25,945 $530 $25,415
1
1
1
1
1 70
1
BB = 9
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, 1999 1
1999
Actual Over
or Under( -) 1998
Budget Actual Budget Actual
Revenues
Intergovernmental:
Federal Grants $240,809 $77,736 ($163,073) $171,573
Total Revenues 240,809 77,736 (163,073) 171,573 1
Other Financing Uses
Operating transfers out (240,809) (77,736) 163,073 (171,573)
Excess or Deficiency ( -) of
Revenues Over Other Financing Uses
Fund Balance January 1 1
Fund Balance December 31 $0 $0 $0 $0
1
1
1
1
1
1
71 1
1
1 1 B -10
City of Brooklyn Center
I City Initiatives Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
1 For the Year Ended December 31, 1999
1 1999
Actual Over
1
or Under( -) 1998
Budget Actual Budget Actual
Revenues
1 Intergovernmental $112,852 $112,852 $169,490
Investment earnings 2,908 2,908 3,354
Change in fair value of investments (714) (714) 182
1 1 Miscellaneous 33,211 33,211 2,395
Total Revenues 148,257 148,257 175,421
1 Expenditures
Personal services 13,935 13,935 49,612
I Supplies 294 294 2,053
Services and other charges 95,612 95,612 68,992
Capital outlays 54,633
1 1,393
Total Expenditures 109,841 109,841 176,683
1 1
1
Excess or Deficiency ( -) of
I Revenues over Expenditures 38,416 38,416 (1,262)
Fund Balance January 1 $31,995 31,995 33,257
1 Fund Balance December 31 $31,995 $70,411 $38,416 $31,995
1
1
1
1
•
72
1
1
1 City of Brooklyn Center, Minnesota
DEBT SERVICE FUNDS
' The Debt Service Funds were established to account for the accumulation of resources for,
and the payment of principal and interest on Tong -term general obligation debt other than
revenue bonds and the City's liability for compensated absences.
' This fund type utilizes the modified accrual basis of accounting. Revenues are recognized in
the accounting period in which they become available and measurable. Expenditures are
recognized in the accounting period in which the principal and interest are due.
The City's Debt Service Funds included in this section are:
1 General Obligation 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 o
t account for the accumulation of resources
for payment of tax increment general obligation bonds and interest thereon. These bonds
were sold to finance the purchase and redevelopment of the historic Earle Brown Farm and
other various redevelopment projects within the City.
Special Assessment Bonds Fund: This fund is used to account for the accumulation of
resources for the payment of special assessment bonds. These bonds were sold to finance
' certain public improvements such as residential streets and storm sewers or the provision of
services which are to be paid for wholly or in part from special assessments levied against
benefited property.
1
1
1
1
111
1 73
1
C1 t City of Brooklyn Center
Debt Service Funds
COMBINING BALANCE SHEET I
December 31, 1999
General Tax Special I
Obligation Increment Assessment Totals
Bonds Bonds Bonds 1999 1998 I
ASSETS
Cash and cash equivalents $2,146,691 $1,642,308 $755,920 $4,544,919 $4,254,687 I
Investments 129,979 273,395 719,987 1,123,361 834,584
Special assessments receivable:
Deferred 3,452,530 3,452,530 2,471,774 I
Delinquent 18,654 18,654 10,007
Due from other funds 26,013
TOTAL ASSETS $2,276,670 $1,915,703 $4,947,091 $9,139,464 $7,597,065 1
LIABILITIES AND FUND BALANCES
1
Liabilities: 1
Accounts Payable $62 $750 $827 $1,639 $1,625
Deferred revenue 3,471,184 3,471,184 2,481,781
Total Liabilities 62 750 3,472,011 3,472,823 2,483,406 I
Fund Balances:
I
Reserved for debt service 2,276,608 1,914,953 1,475,080 5,666,641 5,113,659
Total Fund Balances 2,276,608 1,914,953 1,475,080 5,666,641 5,113,659
I
TOTAL LIABILITIES AND
FUND BALANCES $2,276,670 $1,915,703 $4,947,091 $9,139,464 $7,597,065
I
1
1
1
1
74 1
i
C = 2
1
City of Brooklyn Center
Debt Service Funds
I COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1999
1
1 General Tax Special
Obligation Increment Assessment Totals
Bonds Bonds Bonds 1999 1998
I Revenues
Special assessments $690,538 $690,538 $537,698
Intergovernmental $308,310 308,310 308,878
1 Investment earnings 58,777 $22,129 56,605 137,511 53,428
Change in fair value of investments (4,288) (9,967) (18,343) (32,598) 4,259
1 Total Revenues 362,799 12,162 728,800 1,103,761 904,263
Expenditures
' Principal 515,000 1,165,000 405,000 2,085,000 1,285,000
Interest 521,592 662,232 189,790 1,373,614 1,244,923
Fiscal agent fees 1,818 1,743 10,369 13,930 8,122
1 Bond issuance costs 32,415
Total Expenditures 1,038,410 1,828,975 605,159 3,472,544 2,570,460
1 Excess or Deficiency ( -) of Revenues
Over Expenditures (675,611) (1,816,813) 123,641 (2,368,783) (1,666,197)
1 Other Financing Sources or Uses ( -)
Proceeds from sale of bonds 1,588,254
1 Operating transfers in 779,491 1,880,000 262,274 2,921,765 2,882,804
Total Other Financing Sources
' or Uses ( -) 779,491 1,880,000 262,274 2,921,765 4,471,058
Excess or Deficiency ( -) of Revenues and
Other Sources Over Expenditures
1 and Other Uses 103,880 63,187 385,915 552,982 2,804,861
Fund Balances January 1 2,172,728 1,851,766 1,089,165 5,113,659 2,239,528
I Equity Transfer In (Out) 69,270
I Fund Balances December 31 $2,276,608 $1,914,953 $1,475,080 $5,666,641 $5,113,659
1
1
75
1
' City of Brooklyn Center, Minnesota
1 CAPITAL PROJECTS FUNDS
1 The Capital Projects Funds are established to account for all resources used for the
p Projects t ac o a l resou
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 Emeraencv 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 be limited
to, construction or acquisition of major permanent facilities having a relatively long life; and /or
to reduce debt incurred for capital outlays. The financing sources of the fund include ad
valorem taxation, transfers from other Funds, issuance of bonds, federal and state grants, and
investment earnings.
' 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.
•
1
1
1
' 76
1
D -1 1 City of Brooklyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1999
Municipal 1
Capital State Aid Special
Reserve Capital for Assessment Totals
Emergency Improvements Construction Construction 1
Fund Fund Fund Fund 1999 1998
ASSETS
Cash and cash equivalents $166,718 $725,940 $273,639 $241,564 $1,407,861 $2,557,518 1
Investments 972,231 4,233,388 1,595,749 1,408,706 8,210,074 11,164,714
Accounts receivable 2,062 2,062 3,490 1
Special assessments:
Deferred 392,727 392,727 510,077
Delinquent 87,817 87,817 101,942
Due from other funds 30,303 131,948 49,737 43,907 255,895 195,431 1
Due from other governments 364,251 364,251 150,569
Advance to other funds 1,076,343 593,069 1,669,412 1,749,382
TOTAL ASSETS $1,169,252 $6,167,619 $2,876,445 $2,176,783 $12,390,099 $16,433,123 1
LIABILITIES AND FUND BALANCES 1
Liabilities: 1
Accounts payable $758,268 $2,883 $69,317 $830,468 $517,529
Contracts payable 68,087 6,312 80,935 155,334 248,016
Accrued salaries and wages 162 5,346 5,508 3,115 1
Deferred revenue 364,251 480,544 844,795 749,745
Total Liabilities 826,355 373,608 636,142 1,836,105 1,518,405 1
Fund Balances:
Reserved: 1
Advances to other funds 1,076,343 593,069 1,669,412 1,749,381
Bond proceeds 5,937,869
Unreserved $1,169,252 4,264,921 1,909,768 1,540,641 8,884,582 7,227,468 1
Total Fund Balances 1,169,252 5,341,264 2,502,837 1,540,641 10,553,994 14,914,718
TOTAL LIABILITIES AND 1
FUND BALANCES $1,169,252 $6,167,619 $2,876,445 $2,176,783 $12,390,099 $16,433,123
1
1
77 1
1
1
D-2
City of Brooklyn Center
Capital Projects Funds
1 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1999
1 Municipal
Capital State Aid Special
Reserve Capital for Assessment
I Emergency Improvements Construction Construction Totals
Fund Fund Fund Fund 1999 1998
Revenues
I Special assessments $217,306 $217,306 $477,344
Intergovernmental $2,500,000 $218,728 2,718,728 392,680
Investment earnings $64,867 266,820 121,417 49,624 502,728 897,991
Change in fair value of
I investments
(28,728) (177,721) (56,537) (25,867) (288,853) 83,030
Sale of property 77,157
Miscellaneous 21,004 21,004 74,136
1 Total Revenues 36,139 2,610,103 283,608 241,063 3,170,913 2,002,338
Expenditures
1
Personal services 11,726 11,359 214,776 237,861 228,765
Supplies 11,421 448 11,869 16,026
Services and other charges 455,031 206,008 345,134 1,006,173 1,079,332
I Capital outlay 7,240,316 287,038 1,533,297 9,060,651 4,808,531
Total Expenditures 7,718,494 504,405 2,093,655 10,316,554 6,132,654
I Excess or Deficiency ( -) of Revenues
Over Expenditures 36,139 (5,108,391) (220,797) (1,852,592) (7,145,641) (4,130,316)
1 Other Financing Sources or Uses( -)
Proceeds from sale of bonds 1,585,000 1,585,000 1,081,746
I Operating transfers in 75,000 424,917 499,917 469,197
Total Other Financing Sources
or Uses ( -) 75,000 2,009,917 2,084,917 1,550,943
I Excess or Deficiency ( -) of Revenues
and Other Financing Sources
I Over Expenditures and
Other Financing Uses 36,139 (5,033,391) (220,797) 157,325 (5,060,724) (2,579,373)
Fund Balances January 1 1,133,113 9,899,655 2,723,634 1,158,316 14,914,718 17,213,361
I Equity Transfers In 475,000 225,000 700,000 350,000
Equity Transfers (Out) (69,270)
I Fund Balances December31 $1,169,252 $5,341,264 $2,502,837 $1,540,641 $10,553,994 $14,914,718
1
1 78
S -3
City of Brooklyn Center
Capital Improvements Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1999
Project (Over) Under
1999 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Central garage improvements $1,234,311 $26,740 $1,273,607 ($39,296)
Civic Center Addition 239,960 62,751 62,751 177,209
East fire station project 1,106,000 696,879 953,440 152,560
West fire station project 2,539,000 2,130,897 2,755,180 (216,180)
co
Police station project 4,345,000 3,227,497 4,717,536 (372,536)
Telephone system 182,465 (537) 206,879 (24,414)
E. B. Heritage Center 2,500,000 1,330,799 2,453,594 46,406
Central Park improvement 90,000 125,778 129,915 (39,915)
Park Improvements 105,600 49,341 49,341 56,259
Park shelter renovations 28,654 36,522 138,455 (109,801)
Lions Park improvements 30,200 31,827 31,827 (1,627)
Totals $12,401,190 $7,718,494 $12,772,525 ($371,335)
MI MI NM IN11111 I MN ■ MN I I MI ME M M = I= I= I NM
OM NM MN MI MI NM M E N IIIIIIII MI I NM IIIIIIII MI NM MI IIM
S -4
City of Brooklyn Center
Municipal State Aid for Construction Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1999
Project (Over) Under
1999 to Date Expended
Project Appropriation Expenditures Expenditures Appropriations
69th Ave., Shingle Creek Pkwy to Dupont Ave. improvement $1,774,882 $4,856 $1,692,411 $82,471
69th Ave. fence painting 25,000 14,115 14,115 10,885
Brooklyn Boulevard improvements 600,000 105,673 318,053 281,947
John Martin Drive street improvements 46,946 64 45,973 973
Landscape nodes upgrades 48,963 470 44,991 3,972
o MAC Park Nature Trail 6,250 6,505 6,505 (255)
Signal lamp replacement program 81,289 5,855 81,289 0
53rd Avenue trail 245,912 195,550 196,971 48,941
Miscellaneous sidewalk & retaining wall replacements 54,747 24,360 24,360 30,387
Miscellaneous bituminous repairs 60,000 29,497 29,497 30,503
Paint signal poles 25,000 22,604 22,604 2,396
S.E. Neighborhood improvements 168,983 106,330 106,330 62,653
73rd Avenue improvements 29 29 (29)
Earle Brown Drive improvements 119,398 59,965 59,965 59,433
Bellvue neighborhood improvements 211,537 (71,468) 154,260 57,277
Totals $3,468,907 $504,405 $2,797,353 $671,554
S -5
City of Brooklyn Center
Special Assessment Construction Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1999
Project (Over) Under
1999 to Date Expended
Project Appropriations Expenditures Expenditures Appropriations
Logan, James and Knox Avenues improvements $746,847 $58 $243,661 $503,186
James / 67th Avenue overlay 150,968 286 156,855 (5,887)
Orchard Lane West improvements 1,893,194 107,325 1,932,904 (39,710)
Diseased tree removals 28,275 28,182 (28,182)
03 Reforestation of 1999 improvement projects 52,958 9,773 9,773 43,185
Bellvue neighborhood street improvements 995,289 (79,122) 823,772 171,517
St. Al's neighborhood street improvements 391,816 (17,056) 349,484 42,332
68th Avenue and Lee street improvements 196,858 328 197,186 (328)
Southeast neighborhood 1,634,182 1,223,420 1,264,083 370,099
John Martin Drive 129,162 188 131,356 (2,194)
73rd Avenue improvement 2,789 2,789 (2,789)
Garden City improvement 37,000 37,000 (37,000)
Azelia Avenue improvement 76,244 73,590 73,590 2,654
Earle Brown Drive improvement 223,916 223,916 223,916 0
Camden / 66th Avenue improvement 548,035 482,885 490,111 57,924
Totals $7,039,469 $2,093,655 $5,964,662 $1,074,807
- - - I I M INII 1 II= I= NM NM MN I MI NM
i
1
1 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
1 measurable.
The City's Enterprise Funds included in this section are:
' Municipal Liquor Fund: This fund accounts for the operations of the City's three 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 Heritaae Center Fund,: This fund accounts for the operation of a pioneer
p p
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. The "Inn On The Farm" is a bed and breakfast with
ten rooms available to complement convention activities or be rented individually. Two of the
1 barns have been restored as unique office settings which have found a niche in the market.
'
Recvclina 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 Utility Fund: This fund accounts for the provision of water to customers. Administration,
wells, water storage, and distribution are included.
Sanitary Sewer Fund: This fund accounts for the collection and pumping of sanitary sewage
through a system of sewer lines and lift stations. Sewage is treated by the Metropolitan
' Council Environmental Services whose fees represent about 75% of this fund's expenses.
Storm Drainage 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.
1
1 82
City of Brooklyn Center I
Enterprise Funds
COMBINING BALANCE SHEET
I
December 31, 1999
E. Brown I
Municipal Golf Heritage
Liquor Course Center
ASSETS Fund Fund Fund
I
Current Assets:
Cash and cash equivalents $64,230 $9,733 $4,335
Investments 348,321 54,134
Accounts receivable - net 2,190 380,114
I
Accrued revenue
Special assessments receivable:
Deferred
I
Delinquent
Due from other governments
Inventories 354,788 11,771 33,458
Prepaid expenses 5,848 2,555 I
Total Current Assets 775,377 75,638 420,462
Fixed Assets:
Mains and lines
1
Structures 293,531 317,090 11,295,029
Equipment 133,531 28,077 967,442
Land 100,878 1,391,711 1,493,300
I
Land improvements 12,833 77,450 386,745
540,773 1,814,328 14,142,516
Less: Accumulated Depreciation 272,885 153,668 3,034,592
Total Net Fixed Assets 267,888 1,660,660 11,107,924
I
Total Assets $1,043,265 $1,736,298 $11,528,386
LIABILITIES AND FUND EQUITY ,
Current Liabilities:
Accounts payable $100,478 $7,509 $438,058
Contracts payable
I
Due to other funds 545,000
Accrued salaries payable 14,820 1,928 23,490
Accrued vacation and sick pay 39,759 6,039 22,316
I
Accrued interest payable
Current portion of long -term debt 26,343 50,000
Total Current Liabilities 181,400 65,476 1,028,864
Long -Term Liabilities: I
Advances from other funds 1,000,000
Other long term liabilities
I Bonds payable
Total Long -term Liabilities 1,000,000
Fund Equity: I
Contributions 643,725 10, 760,155
Retained earnings (Deficits)
Reserved: ,
I
Debt service
Special assessments
Unreserved 861,865 27,097 (260,633)
Total Fund Equity 861,865 670,822 10,499,522
I
Total Liabilities and Fund Equity $1,043,265 $1,736,298 $11,528,386
83 1
E -1
1
Recycling Water Sanita ry Storm
& Refuse Utility Sewer Drainage Totals
' F und Fund Fund Fund 1999 1998
$8,501 $413,103 $195,058 $215,983 $910,943 $1,113,731
49,573 2,409,052 1,137,498 24,624 4,023,202 3,840,168
I 15,174 112,004 180,763 71,359 761,604
634,099 623,545
27,347 139,270 321,655 145,827 614,676
118,794 4,351 33,275 156,420 144,708
I 13,833 13,833 10,608
14,039 14,039 104,101
41,325 441,342 357,673
I 116,740 125,143 126,079
100,595 3,247,381 1,970,104 491,068 7,080,625 6,935,289
I 11,714,420 9,768,706 9,029,388 30,512,514 27,496,552
5,719,320 2,775,467 20,400,437 18,976,575
144,789 192,136 10,098 1,476,073 1,298,709
I 23,093 3,389 287,158 3,299,529
501,671 3,299,529
13,857 10,786 144,649
17,615,479 12,739,698 9,337,430 56,190,224 51,216,014
4,983,371 2,925,915 243,814 11,614,245 10,634,020
I 12,632,108 9,813,783 9,093,616 44,575,979 40,581,994
$100,595 $15,879,489 $11,783,887 $9,584,684 $51,656,604 $47,517,283
$1,000 $91,386 $59,719 $255,252 $953,402 $582,662
I
48,383 22,554 14,220 85,157 59,336
545,000 385,000
10,290 3,969 54,497 100,941
I 9,796 5,864 83,774
26,467 77,346
26,467 29,831
180,000 256,343 249,969
1,000 159,855 92,106 475,939 2,004,640 1,485,085
1
1,000,000 1,076,343
I 168,906 168,906 225,208
1,050,000 1,050,000 1,230,000
168,906 1,050,000 2,218,906 2,531,551
1 4,997,510 5,668,426 863,964 22,933,780 21,938,312
1 239,110 239,110 237,558
132,628 4,351 33,275 170,254 155,316
99,595 10,420,590 6,019,004 6,922,396 24,089,914 21,169,461
' 99,595 15,550,728 11,691,781 8,058,745 47,433,058 43,500,647
$100,595 $15,879,489 $11,783,887 $9,584,684 $51,656,604 $47,517,283
1 84
1
City of Brooklyn Center I
Enterprise Funds
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS I
For the Year Ended December 31, 1999
E. Brown I
Municipal Golf Heritage
Liquor Course Center
Fund Fund Fund
I
Operating Revenues
Sales and user fees $3,560,613 $355,534 $3,490,692
Cost of sales 2,694,622 31,860 559,005
I Gross Margin 865,991 323,674 2,931,687
Operating Expenses
I
Personal services 387,260 145,159 1,902,030
Supplies 16,133 25,703 196,100
Other services 85,923 56,704 539,705 t
Insurance 8,146 6,877 27,125
Utilities 25,433 13,320 149,679
Rent 69,922 166,250 '
Depreciation 39,821 13,847 376,209
Total Operating Expenses 632,638 261,610 3,357,098
Operating Income (Loss) 233,353 62,064 (425,411)
Nonoperating Revenues or Expenses( -) I
Investment earnings 18,910 4,270
Change in fair value of investments (7,266) (1,672)
Special assessments
I
Intergovernmental
Other revenue 6,620
Interest and fiscal agent fees (2,593) (23,233)
I Total Nonoperating 15,671 2,598 (23,233)
Income (Loss) Before Operating Transfers 249,024 64,662 (448,644)
I
Operating Transfers In (Out) (75,000) 4,357
Net Income (Loss) 174,024 64,662 (444,287) 1
Depreciation on contributed assets
I that reduces contributed capital 318,420
Retained Earnings (Deficits) Jan. 1 687,841 (37,565) (134,766)
I
Retained Earnings (Deficits) Dec. 31 $861,865 $27,097 ($260,633)
1
85 I
1
1 EE = 2
1
1 Recycling Water Sanitary Storm
& Refuse Utility Sewer Drainage Totals
I Fund Fund Fund Fund 1999 1998
$210,764 $1,354,179 $2,384,106 $999,867 $12,355,755 $10,699,781
I 3,285,487 2,880,024
210,764 1,354,179 2,384,106 999,867 9,070,268 7,819,757
1 291,786 116,939 99,798 2,942,972 2,613,031
114,297 11,157 363,390 345,593
I 213,297 291,688 1,618,912 54,945 2,861,174 2,642,884
85 6,406 4,522 1,819 54,980 53,177
109,012 24,618 322,062 315,484
I 236,172
1 134,107
356,572 203,019 75,843
1,065,311 911,003
213,382 1,169,761 1,979,167 232,405 7,846,061 7,015,279
I (2,618) 184,418 404,939 767,462 1,224,207 804,478
1 4,189 148,205 85,103 37,999 298,676 267,953
(1,918) (72,990) (38,885) (11,820) (134,551) 24,905
I 22,415 338 268,722 291,475 22,767
1,092,809 1,092,809 907,191
460 374 7,454 56,688
I (65,078) (90,904) (123,502)
2,271 98,090 46,556 1,323,006 1,464,959 1,156,002
1 (347) 282,508 451,495 2,090,468 2,689,166 1,960,480
(70,643) 425,000
1 (347) 282,508 451,495 2,090,468 2,618,523 2,385,480
1 318,420 299,430
I 99,942 10,270,710 5,571,860 5,104,313 21,562,335 18,877,425
$99,595 $10,553,218 $6,023,355 $7,194,781 $24,499,278 $21,562,335
1
1 86
City of Brooklyn Center I
Enterprise Funds
COMBINING STATEMENT OF CASH FLOWS
1
For the Year Ended December 31, 1999
E. Brown
Municipal Golf Heritage I
Liquor Course Center
Cash flows from operating activities: Fund Fund Fund
Operating income (loss) $233,353 $62,064 ($425,411)
Adjustments to reconcile operating income (loss) to I
net cash provided by (used for) operating activities:
Depreciation 39,821 13,847 376,209
Changes in assets and liabilities: I
Receivables 1,596 40 (110,232)
Inventories (46,254) (5,892) (9,688)
Prepaid expenses 3,521 3,291
Payables (14,880) 4,709 231,183
I
Accrued expenses 7,601 4,001 (55,190)
Accrued interest payable
Other nonoperating income 6,620
I
Net cash provided by (used for)
operating activities 231,378 78,769 10,162
Cash flows from noncapital financing activities: 1
Proceeds from borrowings on long term debt
Proceeds from borrowings due to other funds 160,000
Principal repayments on long term debt
I
Principal repayments on advance (29,969) (50,000)
Interest paid on advance from other funds (2,593)
Interest paid on due to other funds (23,233)
I
Operating transfers in (out) (75,000) 4,357
Net cash provided by (used for) noncapital
financing activities (107,562) (50,000) 141,124
I
Cash flows from capital and related
financing activities:
Capital contributions 1,234,880
I
Acquisition and construction of capital assets (1,972) . (4,358) (1,405,140)
Principal paid on revenue bonds
Interest paid on revenue bonds
I Net cash used for capital and related
financing activities (1,972) (4,358) (170,260)
Cash flows from investing activities:
I
Investments purchased (205,230) (31,895)
Investments sold or matured 73,033 5,711
Interest on investments 18,910 4,270
I
Net cash provided by (used for)
investing activities (113,287) (21,914)
Net increase (decrease) in cash and I
cash equivalents 8,557 2,497 (18,974)
Cash and cash equivalents at
I beginning of the year 55,673 7,236 23,309
Cash and cash equivalents at
end of the year $64,230 $9,733 $4,335
I
Non cash items:
Change in fair value of investments ($7,266) ($1,672)
87 I
1 E -3
1
I Recycling Water Sanitary Storm
& Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund 1999 1998
I ($2,618) $184,418 $404,939 $767,462 $1,224,207 $804,478
356,572 203,019 75,843 1,065,311 911,003
1 (931) (56,508) 65,860 17,818 (82,357) 179,620
(21,835) (83,669) (17,292)
(5,876) 936 15,960
I
(17,882) (54,756) 60,104 188,083 396,561 169,145
2,461 1,144 (33) (40,016) 55,010
(3,364) (3,364) (3,163)
1 22,875 338 1,361,905 1,391,738 986,646
(21,431) 433,227 729,528 2,407,714 3,869,347 3,101,407
' 1
225,208
160,000
I
(56,302) (56,302)
(79,969) (78,071)
(2,593) (4,691)
I (23,233) (45,211)
(70,643) 425,000
1 (56,302) (72,740) 522,235
1,234,880 1,387,582
(580,004) (605,891) (2,382,921) (4,980,286) (5,166,863)
(170,000) (170,000) (165,000)
I (65,078) (65,078) (73,600)
(580,004) (605,891) (2,617,999) (3,980,484) (4,017,881)
1 (29,208) (1,419,406)
(670,210) (14,509) (2,370,458) (3,552,017)
40,556 1,337,565 439,826 156,180 2,052,871 2,977,393
I 4,189 148,205 85,103 37,999 298,676 267,953
15,537 66,364 (145,281) 179,670 (18,911) (306,671)
I
(5,894) (136,715) (21,644) (30,615) (202,788) (700,910)
1 14,395 549,818 216,702 246,598 1,113,731 1,814,641
I ,
I $8,501 $413,103 $195,058 $215,983 $910,943 $1,113,731
($1,918) ($72,990) ($38,885) ($11,820) ($134,551) $24,905
1 88
1__ _.
1
E -4
City of Brooklyn Center
I
Municipal Liquor Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, I
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
Sales I
Liquor $1,137,459 $1,013,416
Wine 346,560 320,164
Beer 1,852,088 1,670,662 I
Soft drinks 65,162 58,511
Other merchandise 159,344 137,832
Total Sales 3,560,613 3,200,585
I
Less: Cost of Sales 2,694,622 2,433,185
Gross Margin 865,991 767,400 I
Operating Expenses
111
Personal services 387,260 396,389
Supplies 16,133 11,699
Other services 85,923 54,522
I
Insurance 8,146 9,679
Utilities 25,433 24,572
Rent 69,922 55,003 I
Depreciation 39,821 40,787
Total Operating Expenses 632,638 592,651
I
Operating Income 233,353 174,749
Nonoperatina Revenues or Expenses(-)
1
Investment earnings 18,910 12,139
Change in fair value of investments (7,266) 1,128
Other revenue 6,620 8,456 t
Interest and fiscal agent fees (2,593) (4,691)
Total Nonoperating 15,671 17,032
1
Operating Transfers to Other Funds 75,000 75,000
Net Income 174,024 116,781 1
Retained Earnings January 1 687,841 571,060
I
Retained Earnings December 31 $861,865 $687,841
1
89 I
1
E -5
City of Brooklyn Center
Golf Course Fund
I COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
Operating Revenues
I Green fees $269,653 $218,562
Rentals 12,791 10,402
Leagues 12,125 7,972
Golf lessons 2,918 5,487
Concessions 30,010 25,610
Merchandise 24,691 19,975
I Pop machine 1,599 1,232
Miscellaneous 1,747 1,414
I Total Operating Revenues 355,534 290,654
Less: Cost of Sales 31,860 36,211
1 Gross Margin 323,674 254,443
I OQeratino Exenses
Personal services 145,159 121,482
Supplies 25,703 18,484
I Other services 56,704 49,390
Insurance 6,877 6,280
Utilities 13,320 14,141
Depreciation 13,847 12,697
I Total Operating Expenses 261,610 222,474
I Operating Income 62,064 31,969
Nonoperating Revenues or Expenses( -)
I Investment earnings 4,270 2,993
Change in fair value of investments (1,672) 278
11 Total Nonoperating 2,598 3,271
Net Income 64,662 35,240
I Retained Earnings (Deficit) January 1 (37,565) (72,805)
Retained Earnings (Deficit) December 31 $27,097 ($37,565)
1
1 90
1
E6 I City of Brooklyn Center
Earle Brown Heritage Center Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
I
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
Operatina Revenues I
Conventions $811,202 $667,981
Catering 2,418, 368 1,614, 577
Inn on the Farm 209,584 226,730
I
Office Rents 51,538 30,797
Total Operating Revenues 3,490,692 2,540,085
I
Less: Cost of Sales 559,005 410,628
Gross Margin 2,931,687 2,129,457
I
Operatina Expenses
Personal services 1,902,030 1,398,512
I
Supplies 196,100 159,880
Other services 539,705 412,878
Insurance 27,125 24,504
I
Utilities 149,679 136,826
Rent 166,250 79,104
Depredation 376,209 354,590
I
Total Operating Expenses 3,357,098 2,566,294
Operating Loss (425,411) (436,837) 1
NonoDeratina Revenues or Expenses( -)
I Interest and fiscal agent fees (23,233) (20,005)
Total Nonoperating (23,233) (20,005)
I
Operating Transfers from Other Funds 4,357
Net Loss (444,287) (456,842)
1
Depreciation on contributed assets that
reduces contributed capital 318,420 299,430
I
Retained Earnings (Deficit) January 1 (134,766) 22,646
Retained Earnings (Deficit) December 31 ($260,633) ($134,766) I
1
91
1
E -7
1 City of Brooklyn Center
Recycling and Refuse Fund
' COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
Operatina Revenues
Recycling service fees $210,764 $209,007
Operatina Expenses
1 Other services 213,297 214,575
Insurance 85 116
Total Operating Expenses 213,382 214,691
Operating Loss (2,618) (5,684)
Nonoperatina Revenues
Investment earnings 4,189 4,295
Change in fair value of investments (1,918) 399
Total Nonoperating 2,271 4,694
Net Loss (347) (990)
Retained Earnings January 1 99,942 100,932
1 Retained Earnings December 31 $99,595 $99,942
1
1
1
1
1 92
1
E-8 I City of Brooklyn Center
Water Utility Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, I
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
Operatina Revenues t
Service to customers $1,211,746 $1,111,267
Sale of meters 25,241 24,922 I
Penalties 71,717 78,404
Rentals 45,475 15,225
Total Operating Revenues 1,354,179 1,229,818 I
Op eratina Expenses
1
Personal services 291,786 388,388
Supplies 114,297 140,728 I
Contractual services 291,688 217,885
Insurance 6,406 6,735
Utilities 109,012 116,060
I
Depreciation 356,572 255,689
Total Operating Expenses . 1,169,761 1,125,485
I
Operating Income 184,418 104,333
I
Nonoperatina Revenues or Expenses( -)
Investment earnings 148,205 167,803
I
Change in fair value of investments (72,990) 15,597
Special assessments (for hookups & delinquencies) 22,415 15,156
Other 460 41,232
1
Total Nonoperating 98,090 239,788
I
Net Income 282,508 344,121
Retained Earnings January 1 10,270,710 9,926,589 1
Retained Earnings December 31 $10,553,218 $10,270,710
1
1
93 1
E -9
I City of Brooklyn Center
Sanitary Sewer Fund
I COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998
I Operating Revenues
Service to customers $2,384,106 $2,289,620
1
Operating Expenses
I Personal services 116,939 206,760
Supplies 11,157 13,748
Contractual services 187,113 130,100
1 Metropolitan Council Environmental Services 1,431,799 1,468,099
Insurance 4,522 4,158
I Utilities 24,618 23,885
Depreciation 203,019 185,732
I Total Operating Expenses 1,979,167 2,032,482
I Operating Income 404,939 257,138
Nonoperating Revenues
I Investment earnings 85,103 80,723
Change in fair value of investments (38,885) 7,503
I Special assessments (for hookups & delinquencies) 338 4,942
Total Nonoperating 46,556 93,168
I Net Income 451,495 350,306
I Retained Earnings January 1 5,571,860 5,221,554
I Retained Earnings December 31 $6,023,355 $5,571,860
1
1
1 94
1
E -10 I
City of Brooklyn Center
Storm Drainage Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES,
I
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
1999 1998 I
Operatina Revenues
Service to customers $999,867 $940,012
1
Operating Expenses
Personal services 99,798 101,500
1
Supplies 1,054
Contractual services 54,945 95,435
Insurance 1,819 1,705 I
Depreciation 75,843 61,508
Total Operating Expenses 232,405 261,202 1
Operating Income 767,462 678,810 I
Nonoperatina Revenues or Expenses( -)
1
Investment earnings 37,999
Change in fair value of investments (11,820) I
Special assessments 265,626
Special assessments interest 3,096 2,669
Intergovernmental 1,092,809 907,191
I
Other revenue 374 7,000
Interest and fiscal agent fees (65,078) (98,806)
Total Nonoperating 1 323 006 818 054
I
p 9 ,
Operating Transfers from Other Funds 500,000 1
Net Income 2,090,468 1,996,864
1
a
Retained Earnings January 1 5,104,313 3,107,449
Retained Earnings December 31 $7,194,781 $5,104,313 I
1
95
1
City of Brooklyn Center, Minnesota
1 INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement basis, for the financing
of goods or services provided by one department to other departments of the City.
Revenues and expenses in these funds are recognized on the accrual basis of accounting.
Revenues are recognized in the accounting period in which they are earned and become
measurable. Expenditures are recognized in the accounting period in which they are incurred.
The City's Internal Service Funds included in this section are:
1 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.
Central Garaae Fund: This fund was established to account for the acquisition and
1 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.
1
1
1
1
1
1
1
1
1 96
F -1 1
City of Brooklyn Center
Internal Service Funds
I
COMBINING BALANCE SHEET
December 31, 1999
I
Public
Employees Central I
Retirement Garage Totals
ASSETS Fund Fund 1999 1998
Current Assets:
1
Cash and cash equivalents $203,765 $541,593 $745,358 $971,196
Investments 1,188,274 3,158,352 4,346,626 4,239,709
I Accounts receivable 1,323 20,170 21,493 6,797
Inventories 12,572 12,572 4,585
Total Current Assets 1,393,362 3,732,687 5,126,049 5,222,287
I
Fixed Assets:
Equipment
5,583,067 5,583,067 5,142,635
Less: Accumulated depreciation 2,556,258 2,556,258 2,396,179 1
Total net fixed assets 3,026,809 3,026,809 2,746,456
I
TOTAL ASSETS $1,393,362 $6,759,496 $8,152,858 $7,968,743
1
LIABILITIES AND FUND EQUITY
Current Liabilities:
1
Accounts payable $1,349 $27,837 $29,186 $80,221
Accrued salaries payable 8,981 8,981 7,516 t
Accrued vacation and sick pay 28,522 28,522 28,716
Accrued health insurance liability 1,369,891 1,369,891 1,229,333
Total Current Liabilities 1,371,240 65,340 1,436,580 1,345,786
I
Fund Equity:
Contributions:
I
General Fund 869,689 869,689 909,640
Debt Service Funds 1,222,544 1,222,544 1,278,703
Capital Projects Funds 7,395 7,395 7,735
I
Enterprise Funds 538,570 538,570 563,310
General Fixed Asset Account Group 536,328 536,328 560,965
Total Contributions 3,174,526 3,174,526 3,320,353 1
Retained Earnings (Deficits): I
Unreserved 22,122 3,519,630 3,541,752 3,302,604
Total Fund Equity (Deficits) 22,122 6,694,156 6,716,278 6,622,957
TOTAL LIABILITIES AND FUND EQUITY $1,393,362 $6,759,496 $8,152,858 $7,968,743 I
97
1
F -2
I City of Brooklyn Center
Internal Service Funds
I COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1999
1
Public
I Employees Central
Retirement Garage Totals
Fund Fund 1999 1998
I Operating Revenues
Billings to departments $967,480 $967,480 $974,664
1 Sales 69,946 69,946 56,920
Total Operating Revenues 1,037,426 1,037,426 1,031,584
1
Operating Expenses
1 Personal services $156,912 268,958
191,104 425,870 282,596
Supplies 191,104 193,448
Other services 57,008 57,008 71,988
1 Insurance 32,672 32,672 30,537
Utilities 3,559 3,559 ' 4,554
Depreciation 506,396 506,396 511,131
1 Total Operating Expenses 156,912 1,059,697 1,216,609 1,094,254
1 Operating Income (Loss) (156,912) (22,271) (179,183) (62,670)
1 Nonoperating Revenues or Expenses ( -)
Investment earnings 71,073 208,538 279,611 292,172
Change in fair value of investments (31,627) (95,480) (127,107) 27,157
I
Total Nonoperating 39,446 113,058 152,504 319,329
1 Income (Loss) Before Operating Transfers (117,466) 90,787 (26,679) 256,659
Operating Transfers In 120,000 120,000
I Net Income (Loss) 2,534 90,787 93,321 256,659
I Depreciation on contributed assets that
reduces contributed capital 145,827 145,827 147,320
1 Retained Earnings (Deficit) January 1 19,588 3,283,016 3,302,604 2,898,625
Retained Earnings (Deficit) December 31 $22,122 $3,519,630 $3,541,752 $3,302,604
1 98
1
F _ 3 1 City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1999
Employee Central I
Retirement Garage Totals
Fund Fund 1999 1998
Cash flows from operating activities: I
Operating income (loss) ($156,912) ($22,271) ($179,183) ($62,670)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
I
operating activities:
Depreciation 506,396 506,396 511,131
Changes in assets and liabilities:
I Accounts receivable (1,323) (13,373) (14,696) (2,637)
Inventories (7,987) (7,987) 1,505
Accounts payable 1,349 (52,384) (51,035) 68,543
Accrued salaries and leave 1,271 1,271 3,326
I
Accrued health insurance liability 140,558 140,558 11,104
Net cash provided by (used for) operating activities (16,328) 411,652 395,324 530,302
1
Cash flows from noncapital financina activities:
Operating transfers in 120,000 120,000
1
Net cash provided by noncapital
financing activities 120,000 120,000
I
Cash flows from capital and related
financing activities:
I Acquisition of fixed assets (786,750) (786,750) (765,554)
Net cash used for capital and related financing activities (786,750) (786,750) (765,554)
I Cash flows from (used for) investing activities:
Investments purchased (700,127) (1,860,891) (2,561,018) (3,901,300)
Investments sold or matured 496,376 1,830,619 2,326,995 3,232,985
1
Interest on investments 71,073 208,538 279,611 292,172
Net cash provided by (used for) investing activities (132,678) 178,266 45,588 (376,143)
1
Net increase (decrease) in cash
and cash equivalents (29,006) (196,832) (225,838) (611,395)
I
Cash and cash equivalents at beginning
of the year 232,771 738,425 971,196 1,582,591
I
Cash and cash equivalents at end of
the year $203,765 $541,593 $745,358 $971,196
I
Non cash items:
Change in fair value of investments ($31,627) ($95,480) ($127,107) $27,157
99 I
1
1
City of Brooklyn Center, Minnesota
1 GENERAL FIXED ASSET ACCOUNT GROUP
1 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
1 on those assets.
1
1
1
1
1
1
1
1
1
1
1
1
1 100
1
S -6
City of Brooklyn Center I
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1999
1
January 1, December 31,
1
1999 1999
Balance Acquisitions Disposals Balance
I
Investments in General Fixed Assets
Land $2,473,864 $2,473,864
Buildings and improvements 8,776,453 $6,090,518 $150,247 14,716,724
Park improvements 3,354,926 276,113 30,798 3,600,241 1
Furniture 1,360,475 1,360,475
Departmental equipment 1,078,008 205,357 73,255 1,210,110
Total Investments in General
Fixed Assets $17,043,726 $6,571,988 $254,300 $23,361,414
I
Sources of Investments I
General Indebtedness $3,373,771 $6,055,274 $50,338 $9,378,707
1
General Fund revenues 5,657,953 254,834 84,419 5,828,367
Liquor store income 152,614 2,277 150,337
Contributions 216,245 5,557 3,226 218,576 I
Capital projects funds 6,902,244 256,323 102,985 7,055,583
Federal grants 740,899 11,055 729,844
I
Total Sources of Investments $17,043,726 $6,571,988 $254,300 $23,361,414 1
1
1
1
1
101 1
1
S = 7
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1999
1
' Buildings and Park Furniture and
Function Land Improvements Improvements Equipment Total
General government $661,678 $661,678
Government building $406,070 $13,887,241 $357,511 414,198 15,065,020
▪ Public safety 2,500 115,744 1,026,282 1,144,526
Public works 5,450 170,664 176,114
▪ Recreation 35,180 204,520 239,700
Parks 2,065,294 673,109 3,242,730 93,243 6,074,376
• Totals $2,473,864 $14,716,724 $3,600,241 $2,570,585 $23,361,414
1
1
1
1
1
1
1
1
1 102
1
S-8
I
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS I
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 1999
1
General Fixed General Fixed
I
Assets Assets
January 1, December 31,
I
Function 1999 Additions Deductions 1999
General government $662,917 $57,593 $58,832 $661,678 1
Government building 9,095,387 6,132,058 162,425 15,065,020 I
Public safety 1,072,003 72,523 1,144,526
Public works 141,112 49,425 14,423 176,114 I
Recreation 197,266 42,434 239,700
Parks 5,875,041 217,955 18,620 6,074,376
1
Totals $17,043,726 $6,571,988 $254,300 $23,361,414
1
1
1
1
1
1
1
1
103 1
1
1
City of Brooklyn Center, Minnesota
1 GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long -Term Debt Account Group was established to account for the City's
unmatured general obligation Tong -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.
1
1
1
1
1
1
1
1
II 1
1
1
1
1 104
City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG -TERM DEBT
December 31, 1999
December 31,
1999 1998
Amounts Available and to be Provided
Amounts Available in Debt Service Funds $5,666,641 $5,113,659
Amounts to be Provided:
From future property tax levies 6,885,867 8,151,404
From future gas tax allocations 1,790,000 1,980,000
From future tax increments 8,505,047 9,733,233
From future special assessments 4,444,920 2,830,835
Total Amounts Available and to be Provided $27,292,475 $27,809,131
General Long -Term Debt Payable '
General obligation bonds $10,915,000 $11,430,000
Other long term liabilities 37,475 54,131
Tax increment bonds 10,420,000 11,585,000
General obligation special assessment bonds
with governmental commitment 5,920,000 4,740,000
Total General Long -Term Debt $27,292,475 $27,809,131
1
1
105
1
1 H
City of Brooklyn Center
I SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1999
Total Debt
I General Obligation Bonds Tax Increment Bonds Special Assessment Bonds Service Requirements
Year Principal Interest Principal Interest Principal Interest Principal Interest
I 2000 $2,155,000 $424,981 $1,280,000 $595,554 $535,000 $231,972 $3,970,000 $1,252,507
2001 655,000 377,651 1,450,000 519,409 700,000 229,966 2,805,000 1,127,026
1 2002 680,000 350,749 1,540,000 433,892 700,000 199,727 2,920,000 984,368
2003 705,000 322,356 1,645,000 340,413 705,000 168,614 3,055,000 831,383
1 2004 740,000 292,318 1,775,000 237,302 700,000 136,763 3,215,000 666,383
2005 775,000 260,374 360,000 171,123 705,000 104,144 1,840,000 535,641
1 2006 810,000 226,412 360,000 147,362 605,000 73,520 1,775,000 447,294
1 2007 540,000 196,640 385,000 122,585 515,000 47,386 1,440,000 366,611
2008 565,000 171,219 385,000 96,694 355,000 27,205 1,305,000 295,118
I 2009 595,000 144,100 400,000 70,200 250,000 13,292 1,245,000 227,592
2010 625,000 115,274 415,000 42,694 150,000 3,750 1,190,000 161,718
1 2011 655,000 84,710 425,000 14,344 1,080,000 99,054
2012 690,000 52,257 690,000 52,257
1 2013 725,000 17,762 725,000 17,762
$10,915,000 $3,036,803 $10,420,000 $2,791,572 $5,920,000 $1,236,339 $27,255,000 $7,064,714
1
1
1
1
1
1
1 106
i 1
� 1
City of Brooklyn Center, Minnesota
STATISTICAL SECTION
The statistical section presents comparative statistical data for the past ten years, and other
1 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.
1
1
1
1
1
1
1
1
1
11
1
107
TABLE 1
City of Brooklyn Center
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
Fiscal General Public Public Community Parks and Economic Non- Admin. Services Total
Year Govemment Safety Works Services Recreation Development Departmental Reimbursement Expenditures
1990 $1,823,298 $3,474,108 $1,929,950 $114,633 $1,842,294 $169,942 $396,550 ($472,004) $9,278,771
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
co 1995 2,069,978 4,598,618 1,653,358 41,146 2,226,121 209,576 289,747 (529,047) 10,559,497
1996 1,968,780 5,022,324 1,649,526 78,442 2,282,054 201,600 317,148 (611,534) 10,908,340
1997 1,992,251 5,089,072 1,868,130 79,800 2,186,686 248,779 311,436 (661,058) 11,115,096
1998 2,133,829 5,137,108 1,955,108 73,066 2,075,180 313,792 312,625 (731,737) 11,268,971
1999 $2,257,957 $5,336,622 $1,904,205 $83,295 $2,132,511 $383,927 $343,925 ($670,390) $11,772,052
Note: Table includes General Fund only.
Source: City Finance Department Records
N ME MI =11 INIM IMI I NM MN NM MN NM MI MI MIN MI MN = M
= MIN MN MN MN MN IM Mil il= IME MIN NM NM ME iiii NM = = MI
TABLE 2
City of Brooklyn Center
GENERAL GOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE
Last Ten Fiscal Years
General Other
Fiscal Property Licenses Intergovern- Charges for Court Financing Total
Year Taxes & Permits mental Services Fines Misc. Sources Revenue
1990 $3,854,798 $297,495 $3,201,888 $763,791 $215,804 $443,623 $174,925 $8,952,324
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
0 1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602
co
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
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
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
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
1990 $4,092,978 $3,857,576 94.25% $12,241 $3,869,817 94.55% $221,097 5.40%
1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35% j
1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92%
0 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%
* Total tax levy is net of Homestead and Agricultural Credit Aid.
Source: City Finance Department Records
IIN NM 1=1 MI MN IM MI S MI NM M I NM MI N ME I M MI
ME 11.11 EM M ME MEI 1111111 MI M 11111111 IM 11111. MEI NM
TABLE 4
City of Brooklyn Center
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
Last Ten Fiscal Years
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Population (1) 28,810 28,887 28,558 28,533 28,484 28,463 28,502 28,515 28,535 28,535
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 $10,133,274 $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
Non - residential 16,185,832 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
Area -wide allocation (1,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) (586,003) 226,287 537,406 1,504,330
24,953,871 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
Less Tax Increment District 1,540,518 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
Total assessed value 23,413,353 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
Estimated Market Value 1,000,269,000 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
-� - Personal Property
Assessed value 530,526 539,121 543,237 549,751 622,500 622,500 573,984 502,668 452,849 437,707
Estimated market value 10,610,520 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
Total Taxable Property
Assessed value (2) $23,943,879 $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
Estimated market value $1,010,879,520 $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
Assessed Value as a percent of
Estimated Market Value 2.37% 2.32% 2.26% 2.18% 2.19% 2.19% 2.11% 1.89% 1.72% 1.73%
Per Capita Valuations
Assessed Value $831 $827 $799 $756 $747 $749 $730 $678 $662 $714
Estimated Market Value $35,088 $35,563 $35,443 $34,709 $34,167 $34,267 $34,685 $35,867 $38,501 $41,278
Source: City Assessing Department Records and Hennepin County
(1) The Metropolitan Council is the sources of population estimates and they have not yet released the 1999 estimate.
(2) The Minnesota Legislature has repeatedly reduced property tax class rates so that assessed value has fallen even as market values increased.
City of Brooklyn Center TABLE 5
DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES
Last Ten Fiscal Years
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
1990 17.479 1.103 42.099 57.847 54.516 47.893 33.547 94.228 109.976 106.645 98.919
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
8 137.469 146.433 132.907
1999 36.269 59.807 54.337 47.716 54.856 50.276 146.352 140.882 134.261 141.401
-' Hennepin
N
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
1990 $4,092,978 $244,258 $3,718,102 $3,171,054 $4,028,724 $1,099,641 $8,052,590 $24,407,347
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
Source: City Community Development Department Records and Hennepin County
(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 $1,669,976 in 1999.
11= =11 IIIIIII M EMI MEI NM 11/1 MI 11= INN MI NM 111111 I= MI =I
I= NM IIIIII I= • MO MN = MIIII NM M NM MN MIIII I• M • =
TABLE 6
City of Brooklyn Center
Y Y
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
Last Ten Fiscal Years
Percent
Current Collections Total
Special Percent Collection Collections
Year Assessment of of Prior Total to Current
Collected Billings Amount Billings Years Collections Levy
1990 $504,682 $476,874 94.49% $14,327 $491,201 97.33%
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%
w
1993 488,163 469,814 96.24% 21,188 491,002 100.58%
1994 466,784 444,670 95.26% 7,592 452,262 96.89%
1995 476,852 458,439 96.14% 5,497 463,936 97.29%
485 019 459 316 94.70% °
1996 9 / 4,617 463,933 95.65 /o
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%
Source: City Finance Department Records
1
TABLE 7 1
City of Brooklyn Center
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
I
Last Ten Fiscal Years
Less: Ratio of I
Amounts Net Bonded Net
Tax Gross in Debt Net Debt to Tax Bonded
Fiscal Estimated Capacity Bonded Service Bonded Capacity Debt Per
I Year Population Value Debt (1) Fund Debt Value Capita
1990 28,810 $23,943,879 $950,000 $448,846 $501,154 2.09% $17.40
I
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)
1
1993 28,533 21,563,017 - - - 0.00% -
1994 28,484 21,277,190 - - - 0.00% - I
1995 28,463 21,317,771 - - - 0.00% -
I
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
1
1999 28,535 $20,387,445 $7,575,000 $725,868 $6,849,132 33.59% $240.03
Source: City Finance Department Records and Hennepin County 1
(1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds.
I
1
1
1
1
1
114 1
1
1 Table 8
City of Brooklyn Center
COMPUTATION OF LEGAL DEBT MARGIN
1 December 31, 1999
1
Market Value $1,177,854,400
1
1 Debt limit, 2% of market value 23,557,088
Total bonded debt 28,485,000
Deductions (See Note 6):
1 Bonds:
1. Special Assessment Bonds 5,920,000
2. State Aid Street Bonds 3,340,000
1 3. Tax Increment Bonds 10,420,000
1 4. Utility Revenue Bonds 1,230,000
Total Deductions 20,910,000
Total Debt Applicable to Debt Limit 7,575,000
1
Legal Debt Margin, December 31, 1999 $15,982,088
1 Source: City Finance and Community Development Records
1
1
1
115
TABLE 9
City of Brooklyn Center
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1999
City's Share
Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $7,575,000 $725,868 $6,849,132 100.0% $6,849,132
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 18,900,000 454,190 18,445,810 6.99% 1,289,362
No. 11 Anoka 126,528,072 45,198,255 81,329,817 1.34% 1,089,820
No. 279 Osseo 102,980,000 4,039,719 98,940,281 5.76% 5,698,960
No. 286 Earl Brown 3,560,000 325,000 3,235,000 100.00% 3,235,000
Metropolitan Council 110,297,310 0 110,297,310 0.83% 915,468
Hennepin County 165,060,000 1,155,544 163,904,456 1.69% 2,769,985
rn Hennepin County Park Reserve District 18,080,000 3,659,100 14,420,900 2.24% 323,028
Total Overlapping Debt 545,405,382 54,831,808 490,573,574 15,321,623
Total Direct and Overlapping Debt $552,980,382 $55,557,676 $497,422,706 $22,170,755
Direct Overlapping
Comparative Net Debt Ratios Chargeable to City Total Debt Debt
Debt to tax capacity value $20,387,445 108.75% 33.59% 75.15%
Debt to market value $1,177,854,400 1.88% 0.58% 1.30%
Per capita debt, population 28,535 $776.97 $240.03 $536.94
Source: City Finance Department Records, Hennepin County, and I.S.D. 11, Anoka
(1) Includes only general obligation debt which is being repaid through property taxes.
MIN MI IMMI MI INE NM INE MIN IMMI NM MI M MI MN MI = E MN N
1
I TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
1 BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
1 Debt Service
Total Total as a Percent
I Debt General Fund of General
Year Principal Interest Service Expenditures Expenditures
1 1990 $530,000 $585,992 $1,115,992 $9,434,517 11.83%
I 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%
1 1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84%
1 1994 780,000 1,080,555 1,860,555 9,942,058 18.71%
1 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%
1 1997 1,135,000 1,017,128 2,152,128 11,739,733 18.33%
1 1998 1,285,000 1,244,923 2,529,923 12,695,972 19.93%
1 1999 $2,085,000 $1,323,609 $3,408,609 $13,363,091 25.51%
Source: City Finance Department Records
I (1) Amounts for 1996 are higher because of the defeasance of the Tax
Increment Bonds of 1985.
1
1
1
1
1 117
TABLE 11
City of Brooklyn Center
SCHEDULE OF REVENUE BOND COVERAGE
Last Ten Fiscal Years
Net
Non- Net Revenue
Operating Operating Gross Revenue to Debt
Year Revenue Revenue Revenue Expenses(1) Available Principal Interest Total Service
Water Utility Fund
1990 $696,147 $440,644 $1,136,791 $604,497 $532,294 $45,000 $5,425 $50,425 10.556 :1
1991 703,422 390,421 1,093,843 697,108 396,735 45,000 3,695 48,695 8.147 :1
1992 896,857 316,551 1,213,408 762,405 451,003 $45,000 $1,940 $46,940 9.608 :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
w 1999 $1,376,952 $282,508 $1,659,460 $835,962 $823,498 0 0 0 N/A
Storm Drainage Fund (2)
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
Source: City Finance Department Records
(1) Excludes depreciation and interest on bonds.
(2) The Storm Drainage Fund was established in 1991.
Mil MIN MI MI MI MN INE MIll NM NE INE MN I MI ill= M. ME
• I= M iii NM M MME NM ■ MN
TABLE 12
City of Brooklyn Center
PROPERTY VALUE AND CONSTRUCTION
Last Ten Fiscal Years
Building Permits Commercial New Residential
Issued Construction Construction Property Value
Year Number Estimated Cost Value Units Value Commercial Residential Non - Taxable
1990 504 $8,035,605 $5,750,567 1 $65,249 $333,967,220 $676,912,300 $83,719,768
1991 466 8,800,980 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168
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
0 I
1994 607 13,418,453 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200
1995 603 11,948,205 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200
1996 607 16,647,400 12,527,095 18 1,126,000 284,786,600 703,806,700 108,473,400
1997 796 18,274,806 10,905,475 3 225,000 287,163,000 722,917,000 111,226,700
1998 1,482 23,216,525 14,261,800 4 612,900 314,457,700 770,883,400 152,964,200
1999 1,745 $44,188,569 $10,528,100 7 $679,600 $333,929,200 $832,334,600 $155,999,500
Source: City Finance Department Records and Community Development Department Records.
I
1
TABLE 13 t
City of Brooklyn Center
PRINCIPAL TAXPAYERS
December 31, 1999
I
Percentage
1999 of Total
I Market City Market
Taxpayers Type of Business Valuation Value
Talisman Brookdale, LLC Shopping Center $22,925,000 1.97% 1
Lang - Nelson Senior Housing 22,550,000 1.94%
Target Stores Retail 20,521,700 1.76% I
Prudential Insurance Co. Industrial /Office /Hotel 18,435,000 1.58%
I
ReliaStar / Ryan Construction Co. Office /Retail 14,420,000 1.24%
I GE Capital Industrial 8,794,600 0.76% 1
Bradley Real Estate Inc. Retail 8,700,900 0.75%
I
Sears Roebuck and Co. Department Store 8,000,000 0.69%
Fleming Foods Supermarket 7,653,400 0.66% I
1
AMB Property, LP Industrial 5,573,000 0.48%
I
Total Market Value $137,573,600 11.83%
I
TOTAL CITY MARKET VALUE $1,164,801,300
I
Source: City Community Development Records
I
1
1
1
1
120 1
I City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 2000
Policy Period
1 Type of Coverage and Details From To Liability Limits
I. Statutory Liability to Employees
i a. Workers' Compensation - - - -
p ton 04 01 00 04 01 01 Statutory
(participant in the League of
Minnesota Cities Insurance Trust Self -
Insured Workers' Compensation Program)
II. Liability to the Public
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
I 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 -00 04 -01 -01 $1,000,000 combined single limit
(2) Property damage 04 -01 -00 04 -01 -01 $1,000,000 combined single limit
3 Personal injury ) ry 04 -01 -00 04 -01 -01 $1,000,000 combined single limit
1 b. Automobile liability,
comprehensive 04 -01 -00 04 -01 -01
(1) Bodily injury $1,000,000 occurrence
(2) Property damage $1,000,000 occurrence
I (3) Uninsured motorist $1,000,000 occurrence
c. Liquor stores' dram shop 01 -01 -00 01 -01 -01 $1,000,000 each common
1 cause
d. Golf Course and Central Park 01 -01 -00 01 -01 -01 $1,000,000 each common
liquor liability cause
' e. Personal accident, Volunteers 01 -01 -00 01 -01 -01 $100,000 accidental death
$400 /week short -term disability
$1,000 medical
1
121
1
City of Brooklyn Center Table 14 t
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 2000
Buildings,
I
Structures,
Policy Period and Contents
(Replacement
I
Type of Coverage and Details From To Cost)
III. Insurance on City Property 04 -01 -00 04 -01 -01 1
a. Public and institutional property,
all risk, blanket$36,142,440; $1,000
deductible replacement value on buildings.
I
(1) Civic Center $9,779,760
(2) East Fire Station $1,463,325
I (3) West Fire Station $3,150,000
(4) Municipal Service Garage $3,085,500
(5) Elevated Water Towers - 3 locations $3,949,440 I
(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
I
(9) Meter Station $18,360
(10) Storage Building $480,420
(11) Outdoor lighting systems - 7 locations $326,400
I
(12) Humboldt Liquor Store $455,940
(13) Leased Liquor Store $233,000
(14) Leased Liquor Store $240,720
1
(15) Pedestrian Bridge - 2 locations $1,221,960
(16) Picnic Shelter $136,200
(17) Earle Brown Heritage Center $11,195,220
I
(18) Centerbrook Golf Course Club House $380,460
(19) Centerbrook Golf Course - Garage $46,920 '
(20) Lions Park Concession Stand $41,000
Liability Limits I
b. Boiler and machinery 04 -01 -00 04 -01 -01 $5,000,000 per accident
c. Automotive physical damage 04 -01 -00 04 -01 -01 I
(1) Comprehensive ACV - $1,000 deductible
(2) Collision ACV - $1,000 deductible
I
IV. Criminal Acts
a. Faithful performance blanket position $500,000 per loss
1
b. Money and securities (broad form) Various
c. Depositor's forgery $100,000
122 1
111
I TABLE 15
City of Brooklyn Center
DEMOGRAPHIC STATISTICS
I Last Ten Fiscal Years
School Enrollments (3)
I Mpls -St. Paul No. 286
Fiscal Unemployment C.P.I. No. 11 No. 279 No. 281 Earle
Year Population (1) Rate (2) % (2) Anoka Osseo Robbinsdale Brown
I 1990 28,887 3.2% 4.1% 642 1,616 540 1,747
1991 28,810 4.6% 2.3% 807 1,680 521 1,327
1 1992 28,558 4.4% 1.4% 671 1,178 526 1,709
I 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
1 1995 28,463 2.9% 2.8% 664 1,113 567 1,645
I 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
1 1998 28,535 2.5% 1.9% 731 1,756 778 1,701
II 1999 28,535 2.2% 3.2% 776 1,791 800 1,708
(1) Source: Metropolitan Council.
I (2) Source: Minnesota Department of Economic Security, Research and Statistics Dept.
Twin Cities metro area average for year.
(3) School enrollment data was supplied by the schools.
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TABLE 16 I
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
I
December 31, 1999
Date of Incorporation February 14, 1911 t
Date of Adoption of City Charter November 8, 1966
Date City Charter Effective December 8, 1966
1
Form of Government Council- Manager
I
Fiscal Year Begins January 1
Area of City 8 1/2 square miles
1
Miles of Streets:
City 105.856
I
County 6.49
State 10.79
Miles of Storm Sewers 81.65 I
Number of Street Lights: Owned by N.S.P 905
I
Owned by City 97
City Employees as of December 31, 1999 I
Authorized regular full -time 164
Temporary or part-time 200
Total 364
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Fire Protection:
Number of Stations 2 I
Number of Full -time Employees 1
Number of Volunteer Firefighters 42
Police Protection: 1
Number of Stations 1
Number of Full -time Employees 55
1 Number of Part-time Employees 8
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1
I City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
I December 31, 1999 prior page)
Parks and Recreation:
I 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.
1 Playgrounds 20
Park shelters 12
I Picnic shelters 7
Ice skating rinks 13
Hockey rinks 6
Softball diamonds 26
I Baseball diamonds 6
Tennis courts 16
Basketball / volleyball courts 18
I
Municipal Water Plant:
Number of connections 8,933
1 Average daily consumption in gallons 3,366,551
Peak daily consumption in gallons 7,965,000
Plant capacity - gallons per day 17,652,000
I Miles of water mains 114.9
Number of fire hydrants 963
Number of wells 9
I Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.91
I Municipal Sewer Plant:
Number of connections 8,796
I Miles of sanitary sewer 105.43
Daily disposal capacity in gallons 10,938,240
Number of lift stations 10
I Residential rate per quarter $47.50
Municipal Liquor Stores (Off - sale):
I Number of owned stores 1
Number of leased stores 2
1999 sales $3,560,613
1 Elections:
Last General Election - November 3, 1998
Registered voters 17,394
I Votes cast 12,224
Percentage of registered voters voting 70.28%
Last Municipal Election - November 3, 1998
I Registered voters 17,394
Votes cast 12,224
Percentage of registered voters voting 70.28%
I 125