HomeMy WebLinkAbout1997 06-23 CCP Regular Session Public Copy
• CITY COUNCIL AGENDA
CITY OF BROOKLYN CENTER
June 23, 1997
7 p.m.
1. Call to Order
2. Roll Call
3. Invocation
4. Council Report
5. Presentation
6. Approval of Agenda and Consent Agenda
-The following items are considered to be routine by the City Council and will be enacted
by one motion. There will be no separate discussion of these items unless a Councilmember
so requests, in which event the item will be removed from the consent agenda and
considered at the end of Council Consideration Items.
• a. Approval of Minutes
Councilmembers not present at meetings will be recorded as abstaining from the vote
on the minutes.
1. May 22, 1997 - Joint Session with Financial Commission
2. May 27, 1997 - Regular Session
3. June 9, 1997 - Regular Session
b. Brooklyn Center Fire Department Relief Association Financial Statement
Y p s for the
Calendar Year Ended December 31, 1996
C. Resolution Amending the 1997 General Fund Street Maintenance Budget to Accept
Snow Removal Reimbursement Aid, Accepting Quote and Authorizing Purchase of
a Wing Snow Plow
d. Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 1997 -09,
Contract 1997 -C, 1997 Sealcoating
e. Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 1997 -11,
Contract 1997 -J, Elevated Storage Tank Repair, Tower No. 2
• £ Resolution Accepting Work Performed and Authorizing Final Payment, Improvement
Project No. 1997 -07, Contract 1997 -A, Replacement of Underground Storage Tanks
and Fuel System, Central Garage
• CITY COUNCIL AGENDA -2- June 23, 1997
g. Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased Trees
h. Licenses
7. Open Forum
8. Public Hearing
a. Regarding Amendment of Year 1995 Statement of Projected Use of Funds for the
Urban Hennepin County Community Development Block Grant Program
1. Resolution Amending the Urban Hennepin County Statement of Projected Use
of Funds for the Year 1995 by Reallocating $58,920.06 from the Scattered Site
Redevelopment Project to the 53rd Avenue Development and Linkage Project
-Requested Council Action:
-Open the public hearing.
-Take public input.
-Close the public hearing.
- Motion to adopt resolution.
• 9. Council Consideration Items
a. Resolution Authorizing the City to Enter into a Grant Agreement with the State of
Minnesota for Funding the Shingle Creek Regional Pond; Improvement Project No.
1997 -17
- Requested Council Action:
- Motion to adopt resolution.
b. Discussion of Amending the Special Assessment Policy, Revising the Senior Deferral
Policy
- Requested Council Action:
- Council discuss.
C. Comprehensive Annual Financial Report for the Year Ended December 31, 1996
- Requested Council Action:
- Presentation by Deloitte and Touche.
1. Resolution Accepting the Comprehensive Annual Financial Report of the City
of Brooklyn Center for the Calendar Year Ended December 31, 1996, and
Ratifying Interfund Loans
- Requested Council:Action:
- Motion to adopt resolution.
• CITY COUNCIL AGENDA -3- June 23, 1997
d. Resolution Authorizing the City of Brooklyn Center to Act as Fiscal Agent for the
1997 -98 Minnesota Department of Children, Families and Learning, After School
Enrichment Grant
- Requested Council Action:
- Motion to adopt resolution.
10. Adjournment
EDA AGENDA
CITY OF BROOKLYN CENTER
June 23, 1997
7 p.m.
1. Call to Order
2. Roll Call
• 3. Approval of Agenda
-The following items are considered to be routine by the Economic Development Authority
and will be enacted by one motion. There will be no separate discussion of these items
unless a Commissioner so requests, in which event the item will be removed from the
consent agenda and considered at the end of Commission Consideration Items.
a. Approval of Minutes
- Commissioners not present at meetings will be recorded as abstaining from the vote
on the minutes.
1. May 27, 1997 - Regular Session
2. June 9, 1997 - Regular Session
4. Commission Consideration Items
a. Resolution Accepting Quotations and Awarding Contract for Residential Structure
Removal for 53rd Avenue Development and Linkage Project
- Requested Commission Action:
- Motion to adopt resolution.
b. Options for EDA Housing Rehabilitation Deferred Loan Program
- Requested Commission Action:
• - Commission discuss.
5. Adjournment
DRAFT
• MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
AND FINANCIAL COMMISSION
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND
THE STATE OF MINNESOTA
JOINT SESSION
MAY 22, 1997
CITY HALL
CALL TO ORDER
The City Council and Financial Commission met in a joint meeting called to order by Mayor
Kragness at 7 p.m. in Conference Room B, City Hall.
ROLL CALL
Mayor Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman, and Robert
Peppe, Financial Commission Chair Donn Escher, and Commissioners Ned Storla and Ron
Christensen. Also present were City Manager Michael J. McCauley, Assistant City Manager Jane
Chambers, Finance Director Charlie Hansen, and City Clerk Sharon Knutson. Financial
Commissioners Jerald Blarney, Jay Hruska, Larry Peterson, and Michael Weidner were absent.
FINANCIAL COMMISSION UPDATE
Financial Commission Chair Escher reported that at the last Council meeting he made a presentation
on behalf of the Financial Commission regarding the revision to the Capital Improvements Fund
Expenditure Policy, and the policy was adopted by the City Council
DRAFT BUDGET CALENDAR AND DISCUSSION OF ISSUES
City Manager McCauley stated this is the beginning stage of the budget process and the purpose of
this meeting is for the City Council and Financial Commission to raise issues and provide input in
the preparation of the 1998 budget. Mr. McCauley summarized the budget calendar and suggested
the Council schedule a budget work session prior to the August 18, 1997, work session.
City Manager McCauley gave an overview of the estimated sources of financing for the budget,
which includes approximately 52% property taxes, 30% intergovernmental, 7% services charges,
4% lodging tax, and the remaining 7% is transfers and miscellaneous. He then reviewed how the
budget is appropriated by function, which is estimated at 43% public safety, 19 % recreation, 15%
general government, 12% public works, 3% transfers out, 3% unallocated, 2% Convention Bureau,
2% debt services, and 1% Social Services.
5/22/97 _1 _
DRAFT
Chair Escher explained that in the early 1990s the City employees conducted a service prioritization
on how to increase revenues or decrease spending. •
Councilmember Hilstrom indicated she would like the City to look at the possibility of participation
in more joint powers agreements and sharing of costs. She would like to add this as one of the goals
for this year.
Discussion ensued regarding a bond referendum for City building needs. City Manager McCauley
indicated the City component of property taxes could go up if it is a successful bond election.
Councilmember Carmody indicated there would be increased operating expenses with relation to the
1998 budget if the bond election is successful
Councilmember Lasman inquired about the recreation director position. City Manager McCauley
stated the City is evaluating the park and recreation division.
COUNCIL ISSUES/DIRECTION ON BUDGET/BUDGET PROCESS
Councilmember Hilstrom discussed the issue of code enforcement, one of the Council's established
goals. City Manager McCauley said currently the code enforcement officers are in the police
department budget, however, one full -time code enforcement officer could be reallocated to the
community development department. Councilmembers Carmody and Hilstrom asked whether the
position is called code enforcement officer or community services officer.
There was discussion
regarding Brook •
dale and any effects it may have on the City budget.
Councilmember Hilstrom indicated it was hopeful that the Governor would sign the $2 million bill
for redevelopment of Brookdale. Financial Commission members strongly encouraged the City
Council to keep Brookdale a top priority.
JOINT POWERS AGREEMENTS
City Manager McCauley presented a list of joint powers agreements in which the City participates.
Councilmembers Hilstrom and Carmody expressed concern with the Five Cities Senior
Transportation Program, especially as it relates to serving only seniors and does not include travel
to doctor appointments. Councilmembers recommended the City start the process to establish a new
program or look at other options. Regarding Project PEACE, Councilmembers recommended
looking at alternatives such as a jointpowers agreement with another city.
CONTRACTUAL SERVICES
City Manager McCauley requested Council direction on the social service requests for the 1998
budget process. Councilmember Hilstrom said that previously the Human Rights and Resources
Commission would evaluate the social service requests and make recommendations to the Council.
She stated that social service agencies should not automatically be part of the City budget and
5/22/97 -2- •
DRAFT
• recommended a policy be adopted to handle these requests so that social service agencies become
self - sufficient.
Financial Commission Chair Donn Escher and Financial Commissioner Ned Storla left the meeting
at 9:40 p.m.
Councilmembers agreed to the form and format for application for contractual services, the same
format as last year. Letters will be sent to those agencies who applied last year and notice will be
posted regarding the process for applying for funding, emphasizing the deadline to apply.
Councilmembers will review the requests.
City Manager McCauley recommended the City Council request the Financial Commission to
develop a policy regarding social service requests.
Councilmember Hilstrom requested a list of all the City's professional services and when the
contracts expire.
COMMISSIONER OPAT'S REQUEST
Council discussed a letter dated May 12, 1997, which Hennepin County Commissioner Mike Opat
wrote to Mayor Kragness regarding ISTEA funding as it relates to Brooklyn Boulevard. City
Manager McCauley will call Commissioner Opat to schedule a work session with the City Council.
ADJOURNMENT
The meeting adjourned at 10:15 p.m.
City Clerk Mayor
• 5/22/97
DRAFT
• MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
REGULAR SESSION
MAY 27, 1997
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met in regular session and was called to order by Mayor
Myrna Kragness at 7:00 m.
Y P
ROLL CALL
Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman,
and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager
Jane Chambers, Public Services Director Diane Spector, City Attorney Charlie LeFevere, and.
Council Secretary LeAnn Larson.
• MOMENT OF SILENCE
A moment of silence was observed.
COUNCIL REPORTS
Mayor Kragness reminded citizens about the upcoming public meeting regarding building
needs, Wednesday, May 28, 1997, at 7:00 p.m. in Constitution Hall.
APPROVAL OF AGENDA AND CONSENT AGENDA
Councilmember Carmody requested that the minutes of the April 28, 1997 -- Regular Session
and Taxicab License #143 for Northstar Cab be removed from the agenda. Councilmember
Carmody requested that item 7.j. Set Date for Work Session be added to the agenda.
A motion by Councilmember Carmody and seconded by Councilmember Peppe to approve the
agenda and consent agenda as amended passed unanimously.
APPROVAL OF MINUTES
A motion by Councilmember Carmody and seconded by Councilmember Peppe to approve
• minutes of the April 23, 1997- -Work Session and May 1, 1997 - -Joint Session with Financial.
5/27/97 -1-
DRAFT
Commission as printed passed unanimously. •
RESOLUTION NO. 97 -88
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING EXECUTION OF A COOPERATIVE JOINT POWERS
AGREEMENT FOR EMERGENCY /STANDBY WATER INTERCONNECT BETWEEN
THE CITIES OF BROOKLYN PARK AND BROOKLYN CENTER
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe
and passed unanimously.
RESOLUTION NO. 97 -89
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING
ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1997 -11, ELEVATED
STORAGE TANK REPAIR -- TOWER NO.2
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe •
and passed unanimously.
RESOLUTION NO. 97 -90
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION REJECTING BIDS, IMPROVEMENT PROJECT NO. 1995 -05, CONTRACT
1997 -G, 69TH AVENUE, SHINGLE CREEK PARKWAY TO DUPONT AVENUE
LANDSCAPING
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe
and passed unanimously.
RESOLUTION NO. 97 -91
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL
OF DISEASED TREES
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe
•
5/27/97 -2-
'All"T
• and passed unanimously.
APPLICATION FOR TEMPORARY ON -SALE LIQUOR LICENSE AT ST ALPHONSUS
CHURCH
A motion by Councilmember Carmody and seconded by Councilmember Peppe to allow the
temporary on -sale liquor license at St. Alphonsus Church passed unanimously.
RESOLUTION NO. 97-92
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION CALLING FOR A PUBLIC HEARING TO CONSIDER AMENDMENT TO
YEAR 1995 PROJECTED USE OF FUNDS FOR THE URBAN HENNEPIN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
The motion for the adoption of the foregoing resolution was duly seconded by member Peppe
and passed unanimously.
LICENSES
• Amusement Devices - Operator
Earle Brown Bowl 6440 James Circle North
Fuddruckers 5800 Shingle Creek Parkway
Lynbrook Bowl 6357 Lilac Drive North
Amusement Devices - Vendor
American Amusement Arcades 2100 West 96th Street, Bloomington
B & K Music and Sales 133 Spring Valley Circle, Bloomington
Garbage and Refuse Collection Vehicles
Aagard Sanitation 3291 Terminal Drive, Eagan
Mechanical Systems
C O Carlson Air Conditioning Co., Inc. 1203 Bryant Avenue North, Minneapolis
Dependable Indoor Air Quality, Inc. 2619 Coon Rapids Boulevard, Coon Rapids
United Heating and A/C 1295 Hackamore Road, Medina
Rental Dwellings
Initial:
Orval Hage 1807 70th Avenue North
Renewal:
• 5/27/97
-3-
RAFT
James Soderberg Melrose Gates Apartments •
Lyndon and Carole Carlson 5819 Halifax Avenue North
Amos Levang 4100 Lakebreeze Avenue North
James and Bobbie Simons 4210 Lakebreeze Avenue North
David Theisen 5601 Lyndale Avenue North
Jan Gibson Talbot 6012 Zenith Avenue North
Edward Doll 1201 57th Avenue North
Sian Hanger
Attracta Sign 7420 West Lake Street, St. Louis Park
Taxicab
Northstar Taxi 8481 Sumter Circle North, Brooklyn Park
Cab Nos. 161, 162, 141, 165, 180, 167, 170
United Cab Services 1401 Portland Avenue, Minneapolis
Cab No. 11
OPEN FORUM
There were no requests for open forum.
COUNCIL CONSIDERATION ITEMS •
RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION TO ULYSSESS
BOYD FOR HIS DEDICATED PUBLIC SERVICE ON THE CHARTER COMMISSION
Mayor Kragness expressed appreciation to Ulyssess Boyd for his dedicated public service on
the Charter Commission from May 18, 1989, through April 20, 1997.
RESOLUTION NO. 97 -93
Member Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION EXPRESSING RECOGNITION AND APPRECIATION TO ULYSSESS
BOYD FOR HIS DEDICATED PUBLIC SERVICE ON THE CHARTER COMMISSION
The motion for the adoption of the foregoing resolution was duly seconded by member
Carmody and passed unanimously.
RESOLUTION DECLARING EARLE BROWN DAYS AS A CIVIC EVENT FROM JUNE
22 THROUGH JUNE 29 1997
5/27/97 -4-
i
• RESOLUTION NO. 97 -94
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION DECLARING EARLE BROWN DAYS AS A CIVIC EVENT FROM JUNE
22 THROUGH JUNE 29, 1997
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
MOBILE COMPUTING DEVICE (MCD) SYSTEM UPDATE STATE OF MINNESOTA
CONNECTION
City Manager McCauley reported on progress with the Mobile Computing Device system.
Over the past months LOGIS has awaited the outcome of the Sparks, Nevada, and the West
Covina (California) Public Safety Department's development efforts to create an external link
between the Sparks Police Department and the State of Nevada. The Sparks Police Department
operates the same HP 3000 police Computer Aided Dispatch (CAD)/Records Management
System (RMS) as LOGIS, which is used by Brooklyn Center Police Department. In addition,
the State of Nevada has the same Law Enforcement Messaging System (LEMS) as the Bureau
of Criminal Apprehension (BCA) in Minnesota. The BCA indicated to LOGIS that when the
• programming and debugging efforts were completed by both Sparks and West Covina, LOGIS
would implement this software solution for its interconnection with the State of Minnesota.
In a recent meeting with LOGIS and BCA officials, it was discovered that the BCA in
Minnesota may not now support this approach. The programming mechanism for the
messaging switch that is used to move messages between the State of Nevada and Sparks Police
Department is not currently an acceptable way of linking to the BCA in Minnesota. This is a
recent development resulting from the BCA in Minnesota continuing to customize their LEMS
switch and computing environment differently from Nevada's system.
Mr. McCauley noted that LOGIS has decided to seek out and hire a firm who has completed
police /state interconnections for other Minnesota law enforcement agencies. The goal is to
have the interconnect working within two to three months.
The Council expressed dismay over the lengthy process to implement this MCD system.
Councilmember Hilstrom hoped that Council would support directing staff to put together all
of the options. Mayor Kragness requested that Mr. Mike Garris, LOGIS Director, update the
Council as soon as possible. Mr. McCauley stated that he would request more information.
SET DATE FOR MEETING WITH BROOKLYN COMMUNITY CHAMBER OF
COMMERCE BOARD OF DIRECTORS
•
5/27/97 -5-
A motion was made by Councilmember Carmody to set a date of June 9, 1997, 5:30 p.m., •
Constitution Hall, for a dinner meeting with the Brooklyn Community Chamber of Commerce.
The motion was seconded by Councilmember Peppe and passed unanimously.
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING
BUILDINGS IN R -1 AND R -2 DISTRICTS
City Manager McCauley noted that the Council has had recent discussions regarding accessory
buildings in the R -1 and R -2 Districts in relation to a recent variance request under Planning
Commission Application No. 97005 submitted by Mr. Timothy Thompson, 5945 Camden
Avenue . North. There are two areas in the Zoning Ordinance which regulate accessory
buildings in these districts.
One area allows accessory buildings or carports as permitted accessory uses provided the
ground coverage of any accessory building not exceed 1,000 square feet, no more than two
accessory structures are permitted on one residential premises, and the total ground coverage
of an accessory building or buildings not exceed the ground coverage of the dwelling building
on the premises.
The other area of the Zoning Ordinance requires accessory buildings to be separated from
principal buildings or other accessory buildings by at least six feet, prohibits accessory
buildings within the side yard adjacent to the street of a corner lot, limits accessory buildings •
to no more than 15 feet in height, and prohibits accessory buildings as well as some other
structures from being used as a residence or dwelling.
Councilmember Peppe stated that restrictions on garage sizes in the Zoning Ordinance were too
restrictive.
Planning and Zoning Specialist Ron Warren addressed several questions from the Council and
asked Council's direction in how the Council wants the present ordinance amended.
A motion was made by Councilmember Carmody to direct the Planning Commission to review
and recommend on accessory structure regulations. The motion was seconded by
Councilmember Hilstrom and passed unanimously.
REGULATION OF SECONDHAND GOODS DEALERS
City Manager McCauley noted City Attorney Charlie LeFevere's overview of the regulations
imposed on the operation of secondhand goods dealers such as the Tried and True Tools
secondhand tool business which is proposing to relocate to Brooklyn Center. Most of the
regulatory provisions of the ordinance applicable to pawnshops would also apply to secondhand
goods dealers. According the Mr. LeFevere, the Brooklyn Center City Code provisions relating
to pawnshops and secondhand goods dealers appear to be directed primarily to issues relating
is
5/27/97 -6-
• to the receipt of stolen goods. In deciding whether to treat secondhand goods dealers
differently from pawnshops, Mr. LeFevere believed that the Council should consider whether
there is something about secondhand goods dealers that makes such businesses less likely to
be involved in receiving stolen goods than pawnshops.
Councilmember Carmody stated that secondhand goods dealers shouldn't be held to the same
level of scrutiny as pawnbrokers. Councilmember Peppe disagreed with Councilmember
Carmody's statement.
Paul Williams, Tried and True Tools, Inc., answered several questions.
Council consensus was to direct the City Attorney to explore several options for secondhand
goods dealers while maintaining adequate safeguards in dealing with stolen property.
TRANSFER OF LIQUOR LICENSES
City Manager McCauley responded to a Council inquiry recently regarding the permissibility
of transferring a liquor license from one location to another. The question came up in relation
to a request by a holder of a liquor license at the Day's Inn for a refund of a portion of his liquor
license fee when his lease was terminated. Though that applicant has not requested a transfer
of a liquor license, this information is provided in case the question arises in the future.
• According to City Attorney, Charlie LeFevere, liquor licenses are granted for a specific
"premises and for a specific applicant. With one specific exception, any transfer from place
to place or person to person would require a new license application and payment of the
appropriate fee.
RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER TO ENTER INTO
AN AGREEMENT WITH THE MINNESOTA AUTO THEFT PREVENTION PROGRAM
FOR THE LOCAL LAW ENFORCEMENT GRANTS PROGRAM
City Manager McCauley explained that the Brooklyn Center Police Department has submitted
a grant application requesting approximately $98,000 to fund the investigation and prevention
of auto thefts. The grant funding will allow the Brooklyn Center Police Department to devote
significant personnel and resources to combat auto theft without adversely impacting on the
department's ability to respond to calls for service and to conduct complete investigations of
reported crimes.
Mr. McCauley noted that these investigation efforts would only be conducted if grant funds
were allocated to Brooklyn Center.
•
5/27/97 -7-
RESOLUTION NO. 97 -95 •
Member Peppe introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER TO ENTER INTO
AN AGREEMENT WITH THE MINNESOTA AUTO THEFT PREVENTION PROGRAM
FOR THE LOCAL LAW ENFORCEMENT GRANTS PROGRAM
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
RESOLUTION APPROVING THE CONTRACT FOR LAW ENFORCEMENT LABOR
SERVICES (LELS) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR
YEARS 1997 & 1998
City Manager McCauley explained that representatives of Law Enforcement Labor Services
(LELS) Local No. 82, City staff, and union representatives have come to agreement on a two -
year contract, with the exception of two points. Rather than holdup the activation of the
majority of the contract, it was proposed between LELS and the City that these two items
would be settled through interest arbitration scheduled for July 1997. The two items for
arbitration are: 1) the use of the words "shall" and "may" with regard to provision of options
in the cafeteria plan; and, 2) sergeant's pay. •
Major provisions of the contract contain a wage package of three percent on the base wages for
two years, effective January 1 of each year, 1997 and 1998. This increase is consistent with
settlements that are occurring around. the metro area for both organized and non - organized
employees, and is consistent with the three -year settlement made with Local 49 (Public Works)
and the pay for non -union employees. Also, the contract provides for a cafeteria insurance
plan. This plan is the same as that contained in the Local 49 contract and the plan offered to
non -union employees.
RESOLUTION NO. 97-96
Member Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION APPROVING THE CONTRACT FOR LAW ENFORCEMENT LABOR
SERVICES (LELS) AND THE CITY OF BROOKLYN CENTER FOR THE CALENDAR
YEARS 1997 & 1998
The motion for the adoption of the foregoing resolution was duly seconded by member
Carmody and passed unanimously.
•
5/27/97 -8-
9
• SET DATE OF WORK SESSION
A motion was made by Councilmember Carmody to set a date of June 3, 1997, 6:30 p.m., for
a work session meeting with Hennepin County Commissioner Mike Opat. The motion was
seconded by Councilmember Hilstrom and passed unanimously.
ADJOURNMENT
A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to adjourn
the meeting at 8:15 p.m. passed unanimously.
City Clerk Mayor
Recorded and transcribed by:
LeAnn Larson
• 5/27/97
-9-
1
DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
• OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
REGULAR SESSION
JUNE 9, 1997
CITY HALL
The Brooklyn Center City Council members met at 5:30 p.m. in Constitution Hall with the
Chamber of Commerce Board of Directors for a dinner meeting preceding the Council meeting.
Chamber President Janis Blumentals, suggested a beautification project of Brooklyn Boulevard
by volunteers /organizations.
CALL TO ORDER
The Brooklyn Center City Council met in regular session and was called to order by Mayor
Myrna Kragness at 7:00 p.m.
ROLL CALL
Mayor Myrna Kragness, Councilmembers Kathleen Carmody, Debra Hilstrom, Kay Lasman,
• and Robert Peppe. Also present: City Manager Michael J. McCauley, Assistant City Manager
Jane Chambers, Public Services Director Diane Spector, Planning and Zoning Specialist Ron
Warren, City Attorney Ron Batty, and Council Secretary LeAnn Larson.
COUNCIL REPORTS
Councilmember Carmody reminded citizens about the odd -even watering ban.
Councilmember Lasman enjoyed a recent boat tour of the Mississippi River sponsored by the
National River and Recreation Area which included a presentation concerning partnerships
working together to maximize resources with regard to the Mississippi River.
PRESENTATION
A legislative update was presented by Speaker Phil Carruthers, Senator Linda Scheid, and
Representative Lyndon Carlson. Of note was the passage of the Brookdale water ponding bill.
Mayor Kragness expressed appreciation for legislators and their efforts on the ponding bill.
APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Councilmember Carmody and seconded by Councilmember Lasman to approve
• 6/9/97 _1_
uKAFT
the agenda and consent agenda as printed passed unanimously. •
APPROVAL OF MINUTES
A motion by Councilmember Carmody and seconded by Councilmember Lasman to approve
minutes of the April 23, 1997 -- Special Work Session; April 28, 1997 -- Regular Session; and
May 12, 1997 -- Regular Session as printed passed unanimously.
RESOLUTION NO. 97 -97
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION ACCEPTING BID AND AWARDING CONTRACT, IMPROVEMENT
PROJECT NOS. 1997-04,05, AND 06, CONTRACT 1997 -F, FRANCE AVENUE STREET,
STORM DRAINAGE AND UTILITY IMPROVEMENTS
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
RESOLUTION NO. 97-98
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION AWARDING A CONTRACT FOR CONSTRUCTION STAKING AND
•
INSPECTION SERVICES, IMPROVEMENT PROJECT NOS. 1997 -04, 05, & 06,
CONTRACT 1997 -F, FRANCE AVENUE STREET, STORM DRAINAGE AND UTILITY
IMPROVEMENTS
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
RESOLUTION NO. 97 -99
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING
ADVERTISEMENT FOR BIDS, IMPROVEMENT PROJECT NO. 1995 -05, CONTRACT
1997 -G, 69TH AVENUE, SHINGLE CREEK PARKWAY TO DUPONT AVENUE
LANDSCAPING
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
6/9/97 -2- •
DRAFT
• RESOLUTION NO. 97 -100
Member Carmody introduced the following resolution and moved its adoption:
RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL
OF DISEASED TREES
The motion for the adoption of the foregoing resolution was duly seconded by member Lasman
and passed unanimously.
LICENSES
Amusement Devices - Operator
Beacon Bowl 6525 West River Road
Amusement Devices - Vendor
D.V.M., Inc., dba Dahlco 296 North Pascal, St. Paul
Garbage and Refuse Collection Vehicles
A W Disposal PO Box 115, Norwood
Browning Ferris Industries 8661 Rendova Street NE, Circle Pines
• Darling & Company PO Box 12785, New Brighton
The Mengelkoch Company 199 NE 14th Street, New Brighton
Waste Management - Blaine 10050 Naples Street NE, Blaine
Mechanical Systems
Minnegasco 700 Linden Avenue West, Minneapolis
Quality Air, Inc. 10830 Magnolia Street NW, Coon Rapids
Sharp Heating & Air Conditioning 4854 Central Avenue NE, Columbia Heights
Rental Dwellings
Initial:
Payne Dimich, Jr. /Sharon Peter 6900 Unity Avenue North
Renewal:
Todd Grabow 7202 Girard Avenue North
Sign Hanger
Crosstown Sign 10166 Central Avenue, Minneapolis
• 6/9/97
-3-
DRAFT
OPEN FORUM
Robert McGowan, 6407 Marlin Drive, noted several improvements necessary in Marlin Park.
I
PUBLIC HEARINGS
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING
TELECOMMUNICATIONS TOWERS AND TELECOMMUNICATIONS FACILITIES
City Manager McCauley stated that this ordinance amendment was first read on May 12, 1997,
published in the official newspaper, and is offered for a second reading and public hearing.
The proposed ordinance defines telecommunications towers and telecommunications facilities
and regulates the placement, construction, and modification of such towers and facilities in
order to protect the health, safety, and welfare of the public, yet not interfere with the
development of competitive wireless telecommunications within the city. he ordinance would
allow telecommunications towers to be located in C -lA, C -2, I -1, and I -2 zoning districts as
permitted uses. The ordinance encourages the shared use of such towers and support structures
and allows telecommunications facilities to be attached to an antenna support structure which
is at least 75 feet tall regardless of the zoning district in which such antenna support structure
is located. The proposed ordinance also establishes a provision requiring the removal of a
telecommunications tower or telecommunications facility which has not been used as such for
one year. •
A motion by Councilmember Carmody and seconded by Councilmember Lasman to open the
public hearing passed unanimously.
No public input was offered.
A motion by Councilmember Carmody and seconded by Councilmember Lasman to close the
public hearing passed unanimously.
ORDINANCE NO. 97 -07
Member Carmody introduced the following ordinance and moved its adoption:
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES REGARDING
TELECOMMUNICATIONS TOWERS AND TELECOMMUNICATIONS FACILITIES
The motion for the foregoing ordinance was duly seconded by member Lasman and passed
unanimously.
6/9/97 - •
4-
DRAFT
• AN ORDINANCE AMENDING CHAPTER 4 OF THE CITY ORDINANCES RELATING
TO THE COLLECTION OF WATER AND SEWER CHARGES
City Manager McCauley stated that this ordinance amendment was first read on May 12, 1997,
published in the official newspaper, and is offered for a second reading and public hearing.
The ordinance amendment would allow the facilitation of collecting delinquent utility accounts
by relying upon special assessments to property taxes as the primary means of collecting
delinquent accounts. A policy has been prepared for carrying out this procedure.
A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to open the
public hearing passed unanimously.
No public input was offered.
A motion by Councilmember Carmody and seconded by Councilmember Hilstrom to close the
public hearing passed unanimously.
ORDINANCE NO. 97 -08
Member Carmody introduced the following ordinance and moved its adoption:
• AN ORDINANCE AMENDING CHAPTER 4 OF THE CITY ORDINANCES RELATING
TO THE COLLECTION OF WATER AND SEWER CHARGES
The motion for the foregoing ordinance was duly seconded by member Hilstrom and passed
unanimously.
AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY A
MINNESOTA CORPORATION ITS SUCCESSORS AND ASSIGNS PERMISSION TO
CONSTRUCT OPERATE REPAIR AND MAINTAIN IN THE CITY OF BROOKLYN
CENTER MINNESOTA AN ELECTRIC DISTRIBUTION SYSTEM AND
TRANSMISSION LINES INCLUDING NECESSARY POLES LINES FIXTURES AND
APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY,
ITS INHABITANTS AND OTHERS AND TO USE THE PUBLIC WAYS AND PUBLIC
GROUNDS OF THE CITY FOR SUCH PURPOSES
City Manager McCauley stated that this ordinance was first read on May 12, 1997, published
in the official newspaper, and is offered for a second reading and public hearing.
This ordinance renews NSP's franchise to operate an electric distribution system and
transmission lines in Brooklyn Center. This franchise was last reviewed and renewed 20 years
ago.
• 6/9/97 -5-
w
DRAFT
A motion by Councilmember Carmody and seconded by Councilmember Lasman to open the •
public hearing passed unanimously.
No public input was offered.
A motion by Councilmember Carmody and seconded by Councilmember Peppe to close the
public hearing. passed unanimously.
ORDINANCE NO. 97 -09
Member Lasman introduced the following ordinance and moved its adoption:
AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A
MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO
CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF BROOKLYN
CENTER, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND
TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND
APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY,
ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC WAYS AND PUBLIC
GROUNDS OF THE CITY FOR SUCH PURPOSES
The motion for the foregoing ordinance was duly seconded by member Carmody and passed
unanimously. •
PLANNING COMMISSION ITEM
PLANNING COMMISSION APPLICATION NO 97006 SUBMITTED BY SPIRITUAL
LIFE CHURCH
Planning and Zoning Specialist Ron Warren explained that this request was for site and
building plan approval to construct a 900 -seat church on the vacant 4.4 acre parcel of land
located at the southwest quadrant of Shingle Creek Parkway and Xerxes Avenue North. The
Planning Commission recommended approval of this application at its May 29, 1997, meeting.
Pastor Judy Fornara spoke on behalf of Spiritual Life Church.
A motion was made by Councilmember Carmody to approve Planning Commission
Application No. 97006 submitted by Spiritual Life Church, subject to the following conditions:
1. The building plans are subject to review and approval by the Building Official with
respect to applicable codes prior to the issuance of permits.
6/9/97 -6-
r
DRAFT
2. Grading, drainage, and utility plans are subject to review and approval by the City
• Engineer prior to the issuance of permits.
3. A site performance agreement and supporting financial guarantee in an amount to be
determined based on cost estimates shall be submitted prior to the issuance of permits
to assure the completion of approved site improvements.
4. Any outside trash disposal facilities and roof -top or on- ground mechanical equipment
shall be appropriately screened from view.
5. The building is to be equipped with an automatic fire extinguishing system to meet
NFPA standards and shall be connected to a central monitoring device in accordance
with Chapter 5 of the City Ordinances.
6. An underground irrigation system shall be installed in all landscaped areas to facilitate
site maintenance.
7. Plan approval is exclusive of all signage which is subject to Chapter 34 of the City
Ordinances.
8. B -612 curb and gutter shall be provided around all parking and driving areas.
• 9. The applicant shall enter into an easement and agreement for maintenance and
inspection of utility and storm drainage systems prior to the issuance of permits.
10. The applicant shall provide appropriate erosion and sediment control devices on the site
during construction as approved by the City Engineering Department.
11. All work performed and materials used for construction of utilities, driveways, and
parking areas shall conform to the City of Brooklyn Center's current standard
specifications and details.
12. The grading plan shall be modified prior to the issuance of building permits to indicate
the berming area used to screen the parking lot from the townhomes on the opposite
side of Freeway Boulevard on the west side of the site property.
13. The Certification of Exemption to the Wetland Conservation Act recommended in the
applicant's wetland report, prepared by McCombs Frank Roos Associates, Inc., is
subject to the approval of the Shingle Creek Watershed Management Commission and
shall be issued prior to the issuance of building permits for this project.
14. Ponding areas shall be protected by appropriate easements as approved by the City
Engineer.
• 6/9/97 -7-
Y
DRAFT
The motion was seconded by Councilmember Lasman and passed unanimously.
•
COUNCIL CONSIDERATION ITEMS
PROCLAMATION DECLARING AUGUST 17 1997 TO BE HONOR - OUR- POLICE
SUNDAY
Mayor Kragness noted the efforts of men and women who serve in Law Enforcement in our
local communities. Woodcrest Baptist Church has expressed a desire to offer spiritual support
and to honor the outstanding performance of all local Law Enforcement personnel throughout
the north metro area by honoring them on Blue and White Sunday, August 17, 1997.
A motion was made by Councilmember Carmody to declare August 17, 1997, to be Honor-
Our- Police Sunday. The motion was seconded by Councilmember Hilstrom and passed
unanimously.
SET DATES FOR CITY COUNCIL WORK SESSIONS
A motion was made by Councilmember Carmody to set Monday, June 16, 1997, 4:30 p.m. as
a work session to meet with Commissioner Opat; and June 25, 1997, 7 p.m., as a general work
session. The motion was seconded by Councilmember Hilstrom and passed unanimously.
MOBILE COMPUTING DEVICE (MCD) - STATE OF MINNESOTA CONNECTION •
UPDATE
City Manager McCauley introduced Dave Schroeder and Patty Hartwig of the Police
Department who gave a demonstration on the MCD system.
Mike Garris, LOGIS Director, responded to several Council concerns and questions relating
to the status of the project. LOGIS will expend its own funds for the programming needed due
to the changes in standards for interface at the Bureau of Criminal Apprehension. Early
September was LOGIS' target for completion. There will be no additional cost to the City.
REPORT ON REHABILITATION LOAN PROGRAM: CDBG
City Manager McCauley asked that this item be reported at a future Council meeting due to
staff needing additional time to prepare a report.
I
MAYORAL APPOINTMENTS
Mayor Kragness requested the following appointments to two commissions:
Housing Commission -- Donald Arm, 2340 Brookview Drive
Planning Commission-- Stephen Erdmann, 4919 61 st Avenue North
6/9/97 -g- •
Y
DRAFT
A motion was made by Councilmember Carmody to ratify the nomination of Donald Arm to
• the Housing Commission. The motion was seconded by Councilmember Lasman and passed
unanimously.
A motion was made by Councilmember Lasman to ratify the nomination of Stephen Erdmann
to the Planning Commission. The motion was seconded by Councilmember Carmody and
passed unanimously.
DISCUSSION OF BUILDING OPTIONS
City Manager McCauley gave an overview of the process used in reviewing space needs and
the development of concepts. There have been two City newsletter articles and four open
houses and a town meeting on May 28, 1997, regarding the space need deficiencies.
City Manager McCauley explained that a plan/concept for dealing with fire department needs
has been fairly well identified. The City Council wanted to have an understanding of the issues
and possible solutions for the police department space needs prior to going out for a bond
referendum. A process was established to review space needs for the civic center complex that
involved a review of needs, resources, and an opportunity for public input. The goal of this
process has been to try to solve the space needs problem in the police department within the
context of the needs for overall City operations.
• Mr. McCauley explained several concepts have been presented for consideration and public
comment. These concepts have explored three different approaches: Option A - a police
station at a location away from the current complex; Option B - remodeling all of the current
police /city hall into police space, with an office connector between the existing building and
the community center; and Option C - building a new police /city hall building in front of the
civic center. Mr. McCauley outlined the advantages and disadvantages of each of the three
options and reviewed the rough estimated costs. He also estimated the impact on the property
taxes on a $75,000 home would increase approximately $4.88 per month or $58.50 per year if
the City issued $7 million in bonds.
The Council took a break at 8:55 p.m. The Council table reconvened at 9:03 p.m.
There was a lengthy discussion among Councilmembers regarding the three options. Council
consensus was that Option B, remodeling all of the current police /city hall into police space,
with an office connector between the existing building and the community center, be dropped
from consideration. Councilmembers suggested off -site location options, which included
northern portion of Northbrook Mall, Humboldt Avenue (Humboldt Liquor area), Brooklyn
Boulevard and 63rd Avenue, Firehouse Park, Freeway Boulevard at Xerxes Avenue.
Councilmember Carmody expressed concern with the high operating costs estimated with
Option A, a freestanding police station.
• 6/9/97 -9-
DRAFT
Councilmember Peppe expressed his desire that the City acquire land to have both the city hall .
and police station together in the future.
Councilmember Hilstrom believed it is critical to have both the fire station question and police
station question on one ballot this fall.
A motion was made by Councilmember Hilstrom to direct staff to pursue Option A - building
a new police department at a new location. The motion was seconded by Councilmember
Peppe and passed unanimously.
ADJOURNMENT
A motion by Councilmember Hilstrom and seconded by Councilmember Peppe to adjourn the
meeting at 9:21 p.m. passed unanimously.
City Clerk Mayor
Recorded and transcribed by: •
LeAnn Larson
6/9/97 _ •
10 _
Y
�b
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director G H
DATE: June 13, 1997
SUBJECT: Brooklyn Center Fire Department Relief Association
Financial Statements for the Calendar Year Ended December
31, 1996
Attached are the Annual Financial Statements of the Fire Department Relief Association
for the Year 1996. This report has been audited by Larson Allen Weishair & Co, certified
public accountants. Contained in the report are statements on the balances and activities
of the Special Fund (pension), and the General Fund of the Association.
In January 1994, the City Council approved changes to the Association's bylaws which
provided benefit increases to be effective on January 1 of 1994, 1995, and 1996. These
• benefit increases raised the liability of the Association. In spite of the benefit increase, the
plan has again reached the state of being fully funded. In other words, the net assets
available for benefits are greater than the pension benefit obligation. This is an
achievement duplicated by few other relief associations in Minnesota and can be viewed
with pride by the Association, its board of directors, and the entire City.
I
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
FINANCIAL STATEMENTS
For the Calendar Year Ended
DECEMBER 31, 1996
CITY OF BROOKLYN CENTER
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
ANNUAL FINANCIAL REPORT
For the Year Ended December 31, 1996
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION
Board Members 1
Treasurer's Letter 2 -3
FINANCIAL SECTION
Independent Auditors' Report 4
I
Special Fund:
Statements of Net Assets Available
for Benefits .............. Exhibit A 5
Statements of Changes in Net Assets
Available for Benefits ....... Exhibit B 6
General Fund:
Balance Sheets ................. Exhibit C 7
Statements of Revenues, Expenditures
and Changes in Fund Balance . Exhibit D 8
Notes to Financial Statements 9 -16
Required Supplementary Information:
PERS Analysis of Funding Progress ... Schedule I 17
PERS Revenue By Source and Expenses
By Type ................ Schedule II 18
Other Supplementary Information:
Schedule of Pensions and Benefits.... Schedule III 19
Special Fund - Investment Detail ...... Schedule IV 20 -22
BROOKLYN CENTER FIRE DEPARTMENT
RELIEF ASSOCIATION
LISTING Of-BOARD MEMBERS AT JANUARY 1 1997
ELECTED MEMBER OFFICE
CRAIG SWANBERG PRESIDENT
ROGER REIFFENBERGER VICE PRESIDENT
MARK SKJOLSVIK TREASURER
TROY THOMPSON SECRETARY
TODD BERG TRUSTEE
DOUG PETER TRUSTEE
EX- OFFICIO MEMBERS OFFIC
MYRNA KRAGNESS MAYOR
CHARLIE HANSEN CITY TREASURER
RON BOMAN FIRE CHIEF
1
y`N CE 1 99
YN
cc
.... \
M
i
BROOKLYN CENTER D EQ�
FIRE DEPARTMENT
6301 Shingle Creek Parkway
Emergency Fire 911 Brooklyn Center, Minnesota 55430
Telephone - 569 -3360
FAX - 561 -0717
TO: Board of Directors, Fire Department Relief Association
Members of the City Council
City Manager
SUBJECT: Fire Department Relief Association Financial Report
DATE: June 4, 1997
The Annual Audited Financial Report of the Fire Department Relief Association,
General and Special "Pension" Funds as of and for the year ended December 31,
1996 is submitted herewith.
During 1993, the Wyatt Company, an actuarial firm, was directed to prepare an
alternate benefit level analysis for the fund. Based on the analysis, the City Council
approved amendments to the Bylaws of the Brooklyn Center Fire Department Relief
Association which granted increased benefits within statutory limitations. The
increased benefits are effective January 1, 1994, January 1, 1995, and January 1,
1996. For active members, monthly retirement benefits increased, lump sum
benefits increased, and provision was made for members who become full -time
employees of the City and members of PERA. Other benefits for active members
remained the same. Deferred pensioners, retired pensioners, and survivors were
given a 10% pension increase effective January 1, 1994. The normal cost of
providing benefits was projected to be $68,698 annually and the annual deposit
required to retire the unfunded liability by the year 2000 was projected to be
$26,241. Note 6 to the financial statements describes the current plan benefits.
The plan had reached the point of being fully funded as of December 31, 1995 and
continued to be fully funded as of December 31, 1996.
2
The last actuarial study was based on data for January 1, 1993. The Association is
required to have a new study done every four years, so a new report is being
prepared on data for January 1, 1997. Wyatt Co., our previous actuary, has chosen
to leave the fire relief field. The Association has retained Van Iwaarden &
Associates to conduct the new study. They have completed a valuation of the
pension benefit obligation for the existing plan benefits which shows a lower
obligation than the last annual update from Wyatt Co. This may be because Wyatt
may not have factored in all lump sum payments or deaths of monthly pensioners
which have occurred since 1993. More information regarding the actuarial valuation
is in Note 7 and Schedule I.
Real estate taxes in the amount of $39,292 were levied in 1995, to be collected in
1996, to finance the City's share of pension costs. The levy was computed as
follows:
Required pension contribution $ 94,939
Other costs, (salaries etc.) 11,153
Less State support (estimated) A
Required property tax levy $ 39,292
During 1996, there were no additions to those volunteer fire fighters who were
drawing a pension from the Fire Department Relief Association, and one member
died, so the total was reduced to twenty three. These pensions ranged from $136
to $453 per month and totaled $66,726 for the year 1996. There was one addition
to the surviving spouses, and two died, so the total decreased to eight monthly
spouse's pensions being paid. These pensions ranged from $139 to $453 per month
and totaled $24,990 for the year 1996. One funeral benefit was paid. Three lump
sum distributions were made to retiring fire fighters. These payments were
$70,722, $100,377 and $78,122. Schedule III of this report is a listing of pensions
and benefits paid in 1996.
Respectfully submitted,
Charlie Hansen
City Treasurer
3
m LARSON
ho ALLEN
') I I' WEISMR
& CO.,LLP
C ER - nRED Pusuc ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Board of Trustees
City of Brooklyn Center
Fire Department Relief Association
Brooklyn Center, Minnesota
We have audited the accompanying statements of net assets available for benefits of the Special Fund and
the balance sheets of the General Fund of the City of Brooklyn Center Fire Department Relief Association
(the Association) as of and for the years ended December 31, 1996 and 1995, and the related statements of
changes in net assets available for benefits of the Special Fund and of revenues, expenditures, and changes
in fund balance of the General Fund for the years then ended. These financial statements are the
responsibility of the Association's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made b management, as well as evaluating the overall financial
P � Y g
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Special Fund and General Fund of the City of Brooklyn Center Fire Department
Relief Association as of December 31, 1996 and 1995, and the results of its operations for the years then
ended, in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as
a whole. The accompanying schedules of required supplementary information are presented for the
purpose of additional analysis and are not a required part of the basic financial statements. These
schedules are also the responsibility of the Association's management. Such schedules have been subjected
to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, are
fairly presented in all material respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report dated April 22, 1997 on
our consideration of the Organization's internal control structure and a report dated April 22, 1997 on its
compliance with laws and regulations.
LARSON, ALLEN, WEISHAIR & LLP
Minneapolis, Minnesota
April 22, 1997
sfasset
Exhibit A
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
SPECIAL FUND
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 and 1995
1220 1995 '
ASSETS
Investments (Note 4):
Time Deposits in Commercial Banks $104,463 $32,107
Money Market & Mutual Funds 1,049,451 925,339
United States Government Obligations 612,491 719,603
Corporate Bonds and Debentures 884,892 1,040,783
$2,651,297 $2,717,832
Receivables:
Interest Receivable 12,390 13,929
Accounts Receivable 477 857
---------- - - - - -- ----------------
$12,867 $14,786
---------- - - - - -- ----------------
Cash $4,337 $2,954
---------- - - - - -- ----------------
Total Assets $2,668,501 $2,735,572
LIABILITIES
Accounts Payable $500 $500
Accrued Wages Payable 0
g Y 375
--------- - - - - -- --------- - - - - --
Total Liabilitie $500 $875
NET ASSETS AVAIL AB E FOR BENEFITS $2,668,001 $2,734,697
See Notes to the Financial Statements
5
sfchange Exhibit B
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
SPECIAL FUND
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1996 and 1995
1996 124
ADDITIONS
Ad Valorem Taxes $39,292 $42,092
State of Minnesota: Fire Insurance Premium Tax 88,272 69,299
Investment Earnings:
Interest and Dividends 188,476 209,132
Net Loss on Sale of Investments (26,744) (90,089)
Provision for Market Valuation of Investments 109,712
TOTAL ADDITION $289,296 $340,146
------- - - - - -- - -- - - - - - --
DEDUCTIONS
Membership Benefits:
Service Pensions $66,940 $68,445
Lump Sum Distributions . 249,221 180,987
Spouses' and Children's Benefits 24,711 26,199
Funeral Benefit 2,500 2,500
$343,372 $278,131
- ----- - - - - -- ------- - - - - --
Administrative Expenses:
Officers' Salaries $4,500 $4,000
Dues 250 285
Audit and Financial 5,160 6,609
Investment Management Fees 2,500 2,000
Office Supplies 210 161
$12,620 $13,055
TOTAL DEDUCTIONS $355,992 $291,186
NET INCREASE MECREAS F) ($66,696) $48,960
NET ASSETS AVAILABLE FOR BENEFITS•
Beginning of year $2,734,697 $2,685,737
End of Year $2,668,001 $2,734,697
See Notes to the Financial Statements
6
gthalsht Exhibit C
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
GENERAL FUND
BALANCE SHEETS
DECEMBER 31, 1996 and 1995
12.26 1995
A SSETS
Investments (Note 4):
Money Market Funds $12,390 $11,715
$12,390 $11,715
Cash $19,438 $20,244
Total Assets $31,828 $31,959
LIABILITIES AND FUND BALANCE
Fund Balance $31,828 $31,959
Total Fund Balance $31,828 $31,959
Total LiabilitiPS & Fund Balance $31,828 $31,959
See Notes to the Financial Statements
7
gfchange Exhibit D
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
FOR THE YEARS ENDED DECEMBER 31, 1996 and 1995
199-6
REVENUES:
Dance $7,023 $8,542
Softball Tournament 13,500 11,237
Interest and Dividends 776 955
Donations 714 518
TOTAL REVEN 22,013 21,252
EXPENDITURES:
Purchase of Equipment 2,386 4,069
Banquets 7,893 7,886
Supplies 5,057 3,467
Donations and Memorials 4,261 1,563
Repairs and Maintenance 45 315
Service Recognition Awards 0 6,508
Miscellaneous 2,502 1,666
TOTAL EXPENDITURES 22,144 25,474
EXCESS OR (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (131) (4,222)
FUND BALANCE - JANUARY 1 31,959 36,181
FUND BALANCE DECEMBER 31 $31,828 $31,959
See Notes to the Financial Statements
8
BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
1. Summary of Significant Accounting Policies
A. Fund Account
The resources of the Brooklyn Center Fire Department Relief Association (the
Association) are accounted for in the following funds:
Special Fund: Accounts for the accumulation of resources to be used for retirement,
dependency and disability annuity payments. Resources include property taxes, the two
percent insurance premium tax from the State of Minnesota, and earnings from
investments.
General Fund: Accounts for the resources other than those in the Special p Fund, consisting
of membership dues to be used for the good and benefit of the Association as determined
by Association bylaws.
B. Basis of Accounting
The accounting policies of the Association conform to generally accepted accounting
principles. The accrual basis of accounting is used for the Special Fund; the modified
accrual basis of accounting is used for the General Fund.
C. Investments
Securities of the federal government and its agencies and corporate.bonds and debentures
are carried at amortized cost. Other investments are carried at the lower of cost or market
value. Dividends are recognized when received." Interest is recognized when earned.
2. Form of Organization
The Association was incorporated on December 5, 1949. It operates under the provisions
of Minnesota Statutes 69 and 424. It is governed by a board of nine members. Six of the
board members are elected by the members of the Association for two year terms. The
Mayor, Finance Director and Fire Chief are ex- officio voting members of the board of
trustees.
9
3. Financial Reporting Entity
The Association has implemented the Governmental Accounting Standards Board
pronouncements relating to financial reporting for the entity. For financial reporting
purposes the Association's financial statements include all funds, departments, agencies,
boards, commissions, and other organizations over which the Association's officials
exercise oversight responsibility.
4. Deposits and Investments
A. Deposits
Minnesota Statutes 118.005 authorizes the Association to deposit cash and to invest in
certificates of deposit in financial institutions designated by the governing body. At
December 31, 1996, the Association had cash deposits totaling $137,660. Minnesota
statutes require that all Association deposits be covered by deposit insurance, surety bond,
or pledged collateral.
Following is a summary of the combined deposits of the General & Special Funds covered
by insurance or collateral at December 31, 1996.
Bank Carrying
Balances Amount
Covered Deposits
Insured, or collateralized with securities
held by the Association or its agent
in the Association's name. $137,660
Collateralized with securities held by the
pledging financial institution's trust
department or agent in the Association's
name. ---- - - - - --
Total covered deposits $137,660
Uncollateralized
Total $137,660 $128,238
10
4. Deposits and Investments (continued)
B. Investment
Minnesota Statutes 69.775 and 11A.24 authorize and define the types of securities
available to the Association for investment. The Association's investments are categorized
below to give an indication of the level of risk assumed at year end.
(A) securities that are insured or registered, or for which the securities are held by the
Association or its agent in the Association's name;
(B) securities that are uninsured and unregistered and are held by the counter party's
trust department or agent in the Association's name;
(C) securities that are uninsured and unregistered and are held by the counter party, or
by its trust department or agent but not in the Association's name.
Following is a summary of the carrying values of the Association's investments,
categorized into the aforementioned levels of risk, along with the market values of the
securities, at December 31, 1996.
CATEGORY TOTAL
-------------- - - - - -- CARRYING MARKET
A B C VALUE VALUE
Investments
Govt.. Obligations $612,491 $612,491 $593,698
Corporate Bonds 884,892 884,892 857,560
$1,497,383 None None $1,497,383 $1,451,258,
Money Market & Mutual Funds (lower of cost or market) 1,052,419
Cash & Time Deposits (Note 4 -A) 137,660
------- - - - - --
Total Cash, Deposits & Investments $2,687,462
The Association's policy is to hold U.S. Government and U.S. Government guaranteed
obligations to maturity.
The Association held two investments (other than U.S. Government and U.S. Government
guaranteed obligations) throughout the year and at December 31 which represent 5 % or more of
the net assets available for benefits. These are the Seilgman High Income Fund and the GATOR
Series I corporate bonds, which are included in the investment detail in Schedule IV.
11
i 5. Plan Description
The Association is the administrator of a single employer public employee retirement
system (PERS) established and administered under Minnesota statutes to provide pension
benefits for volunteer fire fighters of the City of Brooklyn Center. At December 31, 1996
PERS membership consisted of:
Retirees and beneficiaries currently receiving benefits. 31
Terminated employees entitled to benefits but not yet receiving them. 6
Active plan participation:
Vested 17
Nonvested 14
Total 68
6. Retirement Benefit
An actuarial study was completed during 1993 which developed a schedule of benefit
increases which will take effect on January 1, 1994, January 1, 1995, and January 1,
1996. Benefits are less for those members retired prior to that date or for their spouses
and children receiving benefits.
A. Basic Service Pension for Retired Members
Upon approval of an application therefor, a monthly service pension based on Table 1
below per month for each year of active service with the Fire Department shall be paid to
each retired member during the remainder of his or her natural life; provided, however,
that for purposes of computing such service pension, no retired member shall be given
credit for more than 30 years of active service with the. Fire Department.
Table 1
PER YEAR OF SERVICE
Effective Monthly Benefit Lump Sum
Date of Retirement Level Level
1/1/94 - 12/31/94 $24.50 $3,500
1/1/95- 12/31/95 $25.50 $3,750
1/1/96- 12/31/96 $26.50 $4,000
B. Basic Service Pension for Previously Retired Member
Effective January 1, 1994, the service pension for a previously retired member, 4and any
benefits to a surviving spouse of a member who retired before January 1, 1994, were
increased by ten percent (10 %).
12
6. Retirement Benefit (continued)
C. Basic Service Pension for Deferred Pensioner
A member who is otherwise qualified for a service pension but who has not reached the
age of 50 years may retire from the Fire Department without forfeiting the member's right
to such pension: Upon approval of an application therefor, the deferred pensioner shall
receive a pension based on Table 1 above multiplied by such person's years of active
service with the Fire Department and further multiplied by the decimal equivalent of the
applicable percentage determined from the following table:
Table 2
Years of Applicable
Service Percentage
10 60
11 64
12 68
13 72
14 76
15 80
16 84
17 88
18 92
19
96
20 and beyond 100
D. Permissible Forms of Benefit:
Any retired member, deferred pensioner or early retired member may elect to receive any
pension benefits provided in the following forms:
1. Straight Life Annuity
2. Lump Sum Distribution
3. Joint and 100% Survivor
4. Joint and 50% Survivor
13
• 6. Retirement Benefit (continued)
E. Survivor's Benefit:
Upon the death of a participant, an amount equal to the greater of (a) the basic monthly
service pension which had accrued or (b) the amount shown in table 3 below, shall be paid
to the surviving spouse. In lieu of such payments, a lump sum distribution is also
available.
Table 3
Effective Dates Survivors Monthly Benefit
1/1/94- 12/31/94 $490
1/1/95- 12/31/95 $510
1/1/96- 12/31/96 $530
Children's Benefit:
Upon the death of a participant who is survived by a spouse and children, an additional
benefit equal to 25% of the surviving spouse's monthly benefit shall be paid for each
surviving child under the age of 18, not to exceed 100% of the surviving spouse's benefit.
No additional benefits shall be paid if a lump sum distribution is elected.
F. Funeral Benefit:
A funeral expense benefit of $2,500 will be paid upon the death of a participant, except
in instances where benefits are in the form of a lump sum distribution.
G. Disability Benefit:
None, now covered through Fire Department Disability Insurance.
14
7. Funding Status and Progress .
The amount shown below as "pension benefit obligation" is a standardized disclosure
measure of the present value of pension benefits, adjusted for the effects of projected
benefit increases, estimated to be payable in the future as a result of employee service to
date. The measure is the actuarial present value of credited projected benefits and is
intended to help users assess PERS funding status on a going concern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and make
comparisons among PERS.
The measure is independent of the actuarial funding method used to determine
contributions to the PERS, discussed in note 8. below.
An actuarial update of the pension benefit obligation from a base year valuation study is
performed annually. The pension benefit obligation was updated as of January 1, 1997
from an actuarial valuation as of January 1, 1993. Significant actuarial assumptions used
include (a) a rate of return on the investment of present and future assets of 5 percent per
year compounded annually, and (b) no post retirement benefit increases.
At January 1, 1997, the unfunded pension benefit obligation was as follows:
Pension benefit obligation: •
Retirees and beneficiaries currently receiving benefits and
terminated employees not yet receiving benefits $1,211,267
I
Current Employees:
Employer- financed vested 999,561
Employer - financed nonvested 158,217
Total pension benefit obligation 2,369,045
Net assets available for benefits 2,668,001
(at carrying value, equals market) -------------
Assets in excess of pension benefit obligation $ 298,956
The pension benefit obligation increased due to the additional year of service credited to
plan members. There was an offsetting reduction in the pension benefit obligation because
of the payment of lump sum distributions and the death of three beneficiaries. The pension
benefit obligation had a net reduction of $346,165.
15
8. Contributions Required and Contributions Made
PERS funding policy provides for periodic City and State contributions at actuarially
determined rates that are sufficient to accumulate sufficient assets to pay benefits when
due. City and state contribution rates are determined using the entry age normal cost
actuarial funding method. PERS also uses this method to amortize the unfunded liability
by 1999.
City and State contributions totaling $127,564 were made in accordance with actuarially
determined contribution requirements determined through an actuarial valuation performed
at January 1, 1993. These contributions are required to fund (a) $68,698 normal cost, (b)
$26,241 amortization of the unfunded actuarial accrued liability, and $11,153
administration cost. The State contribution was $21,472 more than budgeted and
administrative expenses were $1,467 more than budgeted.
Significant actuarial assumptions used to compute contribution requirements are the same
as those used to compute the standardized measure of the pension obligation discussed in
note 7. above.
The computation of the pension contribution requirements for 1996 was based on the same
actuarial assumptions, benefit provisions, actuarial funding method, and other significant
factors used to determine pension contribution requirements in previous years.
9. Related PaM Investments
During 1996 and as of December 31, 1996, the Association held no securities issued by
the City or other related parties.
10. Ten -Year Historical Trend Information
Ten year historical trend information designed to provide information about PERS'
progress made in accumulating sufficient assets to pay benefits when due is presented in
Schedules I and H.
s
16
schedl SCHEDULE I
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
REQUIRED SUPPLEMENTARY INFORMATION
PERS ANALYSIS OF FUNDING PROGRESS
YEARS 1987 THROUGH 1996
(B) - (A)
(A) (B) UNFUNDED
NET ASSETS (1) PENSION (A) / (B) PENSION
FISCAL AVAILABLE BENEFIT PERCENTAGE BENEFIT
YEAR FOR BENEFITS OBLIGATION FUNDED OBLIGATION
1987 $1,946,629 $1,955,685 99.5% $9,056
1988 2,086,031 2,385,246 87.5% 299,215
1989 2,300,599 2,469,110 93.2% 168,511
1990 2,409,110 2,554,707 94.3% 145,597
1991 2,538,897 2,568,341 98.9% 29,444
1992 2,679,535 2,662,919 100.6% (16,616)
1993 2,848,075 2,894,711 98.4% 46,636
1994 2,685,737 2,793,015 96.2% 107,278
1995 2,734,697 2,715,210 100.7% (19,487)
1996 $2,668,001 $2,369,045 112.6% ($298,956)
(1) All amounts for 1988, 1991, and 1993 are based on an actuarial
valuation. Amounts for 1987, 1989, 1990, 1992, 1994, 1995, and 1996
are based on an actuarial update of the most recent valuation.
Analysis of the dollar amounts of net assets available for benefits, pension
benefit obligation, and unfunded pension benefit obligation in isolation can be
misleading. Expressing the net assets available for benefits as a percentage of
the pension benefit obligation provides one indication of the PERS's funding
status on a going concern basis. Analysis of this percentages over time indicates
whether the system is becoming g financially stronger or weaker. Generally, the
greater this percentage, the stronger the PERS.
17
• sched2 SCHEDULE II
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
REQUIRED SUPPLEMENTARY INFORMATION
PERS REVENUES BY SOURCE AND EXPENSES BY TYPE
YEARS 1987 THROUGH 1996
REVENUES BY SOURCE
FISCAL CITY (1) STATE (1) INVESTMENT
YEA CONTRIBUTIONS CONTRIBUTIONS EARNINGS TOTAL
1987 $41,743 $78,913 $114,483 $235,139
1988 .26,743 83,988 139,797 250,528
1989 23,621 85,015 207,540 316,176
1990 24;621 85,647 160,952 271,220
1991 27,421 70,248 205,350 303,019
1992 20,790 72,110 171,851 264,751
1993 27,790 64,039 180,055 271,884
1994 36,092 66,803 42,857 145,752
1995 42,092 69,299 228,755 340,146
1996 $39,292 $88,272 $161,732 $289,296
EXPENSES BY TYPE
FISCAL
YEA 2I BENEFITS ADMINISTRATIVE TOTAL
1987 $86,018 $20,538 $106,556
1988 91,380 19,746 111,126
1989 95,712 5,896 101,608
1990 154,550 8,159 162,709
1991 158,939 14,293 173,232
1992 111,337 12,776 124,113
1993 87,770 15,574 103,344
1994 295,830 12,260 308,090
1995 278,131 13,055 291,186
1996 $343,372 $12,620 $355,992
(1) Contributions were made in accordance with actuarially determined
contribution requirements.
s
18
schea3 Schedule III
BROOKLYN CENTER
FIRE DEPARTMENT RELIEF ASSOCIATION
SCHEDULE OF MEMBERSHIP BENEFITS
DURING THE YEAR ENDED DECEMBER 31, 1996
Spouses' &
Per Service Children's Total
MONTH Y P N ION Mon Pensions Benefice Benefits
Brunsell, Francis $244 $1,952 $1,952
Cahlandar, Robert 453 $4,530 4,530
Cahlander, Betty 453 906 906
Canfield, Clarence 232 2,784 2,784
Cashman, Robert 230 2,760 2,760
Cichoski, Jerome 136 1,632 1,632
Claypatch, Jack W. 151 1,812 1,812
Considine, C. C. 213 2,556 2,556
Cornwell, Ralph R. 173 2,076 2,076
Davis, Henry 244 2,928 2,928
Draisey, Darwin 136 1,632 1,632
Edling, Charles 163 1,956 1,956
Fox, Robert 192 2,304 2,304
Hannay, William 293 3,516 3,516
Jacobsen, Mrs. Helen 139 1,668 1,668
Jennrich, Richard 277 3,324 3,324
Johnson, Mary P. 232 2,784 2,784
Knight, Richard 190 2,280 2,280
Kolstad, Robert 201 2,412 2,412
Larson, Louis 201 2,412 2,412
Lindman, Allen S. 280 3,360 3,360 .
Linner, Lucille 271 3,252 3,252
McKinley, Marion 263 3,156 3,156
Manderfeld, Joan 266 3,192 3,192
Mason, Ruth J. 326 3,912 3,912
Miller, Irwin 255 3,060 3,060
Nerburne, George 272 3,264 3,264
Owens, Stanley 310 3,720 3,720
Paulson, Dorothy 266 3,192 3,192
Sandgren, Lial 228 2,736 2,736
Sienko, Wanda 244 976 976
Swing, Carl 256 3,072 3,072
Vaughn, James R. 267 3,204 3,204
Vaughn, William $283 3,396 3,396
Total Monthly Pensions $66,726 $24,990 $91,716
T UMP SUM DISTRIBUTIONS
Pedlar, Gerald 70,722 70,722
Peter, Ronald 100,377 100,377
Selander, Milton 78,122 78,122
Total Lump Sums $249,221 $0 $249,221
OTHER BENEFITS
Funeral Benefit, Robert Cahlandar 2,500 2,500
Total Other Benefits $2,500 $0 $2,500
Totals (To Exhibit B) $318,447 $24,990 $343,437
Adjustment due to change in accrual $214 ($279) ($65)
Totals (To Exhibit B) $318,661 $24,711 $343,372
19
investmt BROOKLYN CENTER
SCHEDULE IV
FIRE DEPARTMENT RELIEF ASSOCIATION Continued next page
SPECIAL FUND - INVESTMENT DETAIL
DECEMBER 31, 1996
Pool Premium or Book Market
Original Cost Basis Distribution Discount Value Value
Coupon Maturity Premium or at of Amortized December December
Description Rate Date Face Value - Discount Acquisition Principal to Income 31, 1996 31, 1996
TIME DEPOSITS IN COMMERCIAL BANKS
Marquette Bank Brockdale 5.00% Demand 26,371.76 26,371.76 26,371.76 26,371.76
La Salle NW Bank CD 7.00°s 3/11/11 13,000.00 6.35 13,006.35 -6.35 13,000.00 13,000.00
Manufacturers & Traders Trust CD 6.001 12/11/02 35,000.00 93.85 35,093.85 -2.56 35,091.29 35,000.00
Provident Bank Cincinnati CD 7.00% 9/1/05 30,000.00 30,000.00 30,000.00 30,000.00
Total Time Deposits 104,371.76 100.20 104,471.96 -8.91 104,463.05 104,371.76
MONEY MARKET & MUTUAL FUNDS
AIM Capital Development Fund Varies Demand 75,008.90 75,008.90 75,008.90 74,403.68
AIM Equity Blue Chip Class A Varies Demand 25,000.00 25,000.00 25,000.00 23,815.48
AIM Growth Fund Varies Demand 59,587.43 59,587.43 59,587.43 73,348.31
AIM High Yield Fund Varies Demand 85,898.60 85,898.60 85,898.60 89,155.51
AIM Value Fund Varies Demand 46,034.96 46,034.96 46,034.96 59,581.62
Alliance Premier Growth Fund Varies Demand 26,586.24 26,586.24 26,586.24 26,115.55
N American New Economy Fund Varies Demand 23,390.13 23,390.13 23,390.13 24,733.34
O
BEA Income Fund Varies Demand 47,367.40 47,367.40 47,367.40 45,750.00
Kemper High Yield Varies Demand 92,811.43 92,811.43 92,811.43 88,167.62
Princor Emerging Growth Fund Varies Demand 15,017.52 15,017.52 15,017.52 14,362.88
Princor Utilities Fund Varies Demand 68,555.70 68,555.70 68,555.70 63,849.35
Realty Income Corp Varies Demand 18,567.55 18,567.55 18,567.55 19,100.00
RJR Nabisco Cum Pfd Varies Demand 12,500.00 12,500.00 12,500.00 12,562.50
Seilgman Com Stk Fd Varies Demand 60,414.49 60,414.49 60,414.49 64,621.32
Seilgman High Inc Fd Varies Demand 161,983.45 161,983.45 161,983.45 158,593.31
Seilgman Inc Fd Varies Demand 26,848.75 26,848.75 26,848.75 26,166.15
Simon Debartolo Group Inc Varies Demand 20,287.10 20,287.10 20,287.10 24,800.00
TCW Convertible Securities. Varies Demand 27,217.50 27,217.50 27,217.50 28,125.00
Travelers Corp Cum PF PFD Varies Demand 25,000.00 25,000.00 25,000.00 25,625.00
Walden Residential Properties Varies Demand 17,454.90 17,454.90 17,454.90 19,900.00
Princor Fund Varies Demand 5,206.69 5,206.69 5,206.69 5,206.69
Principal Financial Securities Varies Demand 313.72 313.72 313.72 313.72
First Montauk Sec Inc Money Fd Varies Demand 102,743.24 102,743.24 102,743.24 102,743.24
First Montauk Sec Inc Cash Fd Varies Demand 5,655.78 5,655.78 5,655.78 5,655.78
Total Money Market & Mutual Funds 1,049,451.48 1,049,451.48 1,049,451.48 1,076,696.05
BROOKLYN CENTER SCHEDULE IV
FIRE DEPARTMENT RELIEF ASSOCIATION Continued next page
SPECIAL FUND - INVESTMENT DETAIL
DECEMBER 31, 1996
Pool Premium or Book Market
Original Cost Basis Distribution Discount Value Value
Coupon Maturity Premium or at of Amortized December December
Description Rate Date Face Value - Discount Acquisition Principal to Income 31, 1996 31, 1996
UNITED STATES GOVERNMENT OBLIGATIONS OR AGENCIES
FHLMC MLTCL Series 1334 7.00$ 10/15/06 10,000.00 -50.00 9,950.00 9.72 9,959.72 10,121.80
FHLMC MLTCL Series 1560 -C 5.75% 5/15/23 50,000.00 - 1,000.00 49,000.00 112.57 49,112.57 45,640.50
FHLMC MLTCL Series 1625 6.00W 12/15/08 60,000.00 - 300.00 59,700.00 - 4,596.66 80.95 55,184.29 50,451.72
FHLMC MLTCL Series 1702 5.00% 10/15/16 50,000.00 - 687.50 49,312.50 - 19,294.82 265.31 30,282.99 30,215.62
Fed Natl Mort Assoc Medium Term 8.01 4/1/05 30,000.00 600.00 30,600.00 - 110.64 30,489.36 30,813.90
N Fed Natl Mort Remic 1993 -16 CL 7.501 10/25/19 40,000.00 -50.00 39,950.00 4.49 39,954.49 40,650.00
F - Fed Natl Mort Remic 1993 -44 CL 6.50 11/25/22 60,000.00 60,000.00 60,000.00 59,025.00
Fed Natl Mort Remic 1993 -69 CL 5.501 5/25/23 51,000.00 - 360.48 50,639.52 - 25,153.49 218.28 25,704.31 24,441.90
Fed Natl Mort Remic 1993 -118 6.501 10/25/07 40,000.00 200.00 40,200.00 - 35,276.36 - 182.06 4,741.58 4,471.09
Fed Natl Mort Remic 1993 -210 5.001 1/25/23 70,000.00 70,000.00 - 32,852.81 37,147.19 35,660.72
Fed Natl Mort GTD 1994 -79 7.001 6/25/21 30,000.00 6.35 30,006.35 -6.35 30,000.00 29,437.50
G.N.M.A. Remic 94 -3 7.50W 3/16/07 100,000.00 500.00 100,500.00 -95.94 100,404.06 102,250.00
Strip TINT 0.00% 5/15/15 392,000.00 - 301,883.12 90,116.88 3,877.40 93,994.28 95,796.96
Govt. Natl. Mort. Assoc. 2974 8.001 12/15/03 25,000.00 156.25 25,156.25 - 21,985.77 - 118.68 3,051.80 3,260.48
Govt. Natl. Mort. Assoc. 3481 8.00% 4/15/04 25,000.00 - 1,000.00 24,000.00 - 23,228.96 753.30 1,524.34 1,745.27
Govt. Natl. Mort. Assoc. 6473 8.00% 8/15/05 100,000.00 - 2,145.36 97,854.64 - 85,524.36 1,616.80 13,947.08 14,765.21
Govt. Natl. Mort. Assoc. 90174 9.501 6/15/09 30,095.00 - 677.14 29,417.86 - 26,247.02 393.37 3,564.21 3,920.94
Govt. Natl. Mort. Assoc. 49975 11.00% 6/15/11 50,000.00 701.97 50,701.97 - 43,583.57 - 324.00 6,794.40 7,164.59
Govt Natl. Mort. Assoc. 219884 9.501 8/15/17 24,942.25 872.98 25,815.23 - 24,524.04 - 261.55 1,029.64 458.53
Govt. Natl. Mort. Assoc. 219912 9.50t 8/15/17 49,933.15 499.33 50,432.48 - 42,683.15 - 152.86 7,596.47 7,911.58
Federal Home Loan Mortgage Bonds 8.001 3/21/07 97,505.55 - 1,462.56 96,042.99 - 88,994.01 959.40 8,008.38 8
Total U.S. Government Obligations & Agencies 1,385,475.95 - 306,079.28 1,079,396.67 - 473,945.02 7,039.51 612,491.16 607,150.84
i
BROOKLYN CENTER SCHEDULE IV
FIRE DEPARTMENT RELIEF ASSOCIATION Continued from prior page
SPECIAL FUND - INVESTMENT DETAIL
DECEMBER 31, 1996
Pool Premium or Book Market
Original Cost Basis Distribution Discount Value Value
Coupon Maturity Premium or at of Amortized December December
Description Rate Date Face Value - Discount Acquisition Principal to Income 31, 1996 31, 1996
CORPORATE BONDS OR DEBENTURES
Bankers Trust 7.50% 1/15/02 30,000.00 906.35 30,906.35 - 203.71 30,702.64 30,849.41
Bear Stearns Co Nts 6.88% 10 /1 /05 50,000.00 1,631.35 51,631.35, - 182.74 51,448.61 49,088.00
Cabco for Texaco 6.88% 10/1/05 59,000.00 - 36,573.65 22,426.35 153.96 22,580.31 21,524.88
Chiquita Brands Intl 9.13% 3/1/04 25,000.00 375.00 25,375.00 -57.75 25,317.25 25,187.50
CM Intl Income Euro 13530 0.00% 9/11/00 25,000.00 - 9,997.20 15,002.80 4,983.89 19,986.69 19,531.25
CM Intl Income Euro 13530 0.00% 9/11/00 35,000.00 - 22,206.08 12,793.92 14,144.92 26,938.84 27,343.75
Countrywide Funding Ser 1993 -5 7.13% 12/25/23 75,000.00 - 3,490.85 71,509.15 165.80 71,674.95 72,914.25
Ford Motor Credit Corp 8.38% 1/15/00 30,000.00 639.60 30,639.60 - 248.09 30,391.51 31,549.50
GATOR Series I 0.00% 11/15/03 212,000.00 - 80,371.33 131,628.67 11,983.53 143,612.20 136,555.56
N General Mills Step Up 8.00% 10/31/06 30,000.00 30,000.00 30,000.00 30,470.70
N General Motors Acceptance Corp 7.00% 3/1/00 30,000.00 - 1,176.00 28,824.00 444.85 29,268.85 30,375.00
Golden West Fin Corp Sub Notes 6.00$ 10/1/03 35,000.00 - 2,030.65 32,969.35 340.64 33,309.99 33,278.70
Green Tree Accep Sub Note 10.25% 6/1/02 30,000.00 3,902.80 33,902.80 - 1,578.52 32,324.28 33,750.00
Lehman Bros Holding 10.38% 6/15/02 5,000.00 - 1,093.65 3,906.35. 36.91 3,943.26 3,772.10
MCA 1992 -1 Multi Family 10.25% 2/20/01 50,000.00 50,000.00 50,000.00 50,000.00
Mcdonnell Douglas Gen Term Notes 7.50% 7/15/00 50,000.00 50,000.00 50,000.00 51,537.00
Moore McCormack Bonds 8.88% 7/15/01 22,000.00 22,000.00 22,000,00 22,000.00
New England Life Euro Bond 0.00% 2/1/99 35,000.00 - 14,141.40 20,858.60 9,646.23 30,504.83 30,537.50
Paine Webber Notes 9.13% 4/15/03 35,000.00 - 444.80 34,555.20 5.44 34,560.64 32,950.05
Pepsico Med Term Notes 7.00 10/2/07 55,000.00 672.70 55,672.70 -68.71 55,603.99 54,019.35
Salomon Inc Notes 7.00% 6/15/03 25,000.00 - 726.25 24,273.75 118.33 24,392.08 24,636.00
Salomon Ser G Notes 6.35% 2/15/04 25,000.00 2.80 25,002.80 -2.80 25,000.00 23,625.75
Salomon Retail Mt 7.40% 4/24/02 50,000.00 - 8,743.65 41,256.35 75.02 41,331.37 41,250.00
Total Corporate Bonds &Debentures 1,018,000.00 - 172,864.91 845,135.09 0.00 39,757.20 884,892.29 876
TOTAL INVESTMENTS (TO EXHIBIT A) 3,078,455.20 - 473,945.02 46,787.80 2,651,297.98 2,664,964.90
I
• MEMORANDUM
DATE: June 16, 1997
TO: Michael McCauley, City Manager
FROM: Diane Spector, Director of Public Services `-
SUBJECT: Resolution Amending the 1997 General Fund Street Maintenance Budget to
Accept Snow Removal Reimbursement Aid, Accepting Quote and Authorizing
Purchase of a Wing Snow Plow
Brooklyn Center has received $20,079.15 in reimbursement for extraordinary snow removal
costs from the Division of Emergency Management. This reimbursement is the result of special
legislation providing partial compensation for costs incurred in 1996 which were above and
beyond the average of snow removal costs for the previous three years.
I recommend that this reimbursement be appropriated as follows:
• Replace the wing plow on truck #11, a tandem dump truck. This plow was badly
damaged during the winter, and is no longer usable. This essential piece of equipment
will need to be replaced prior to this winter. We have received a quote from MacQueen
Equipment in the amount of $7,726.58 to furnish and install the wing with an identical
model, and a quote from J -Craft in the amount of $7,958.07.. .
• Given the amount of salt/sand we purchased in early 1997 and what we would typically
purchase in the fall for use in the early part of the winter, we will likely exceed our
salt/sand budget by $8,000. If the early part of winter is worse than average, we will need
to purchase even more salt/sand. I recommend that at least $8,000 of the reimbursement
be allocated to street maintenance materials in the Snow & Ice Control Division.
• It has always been difficult to predict overtime expenses for Snow & Ice Control.
Supervisors can often arrange starting hours of work such that most of the snow removal
or ice control is performed on straight time. However, there are always night time call
outs to salt intersections which ice up overnight, and almost inevitably snowplowing or
ice control on holidays or weekends. I recommend that the balance of the reimbursement
be used to increase the budget for overtime in the Snow & Ice Control Division budget.
• Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION AMENDING THE 1997 GENERAL FUND STREET MAINTENANCE
BUDGET TO ACCEPT SNOW REMOVAL REIMBURSEMENT AID, ACCEPTING
QUOTE AND AUTHORIZING PURCHASE OF A WING SNOW PLOW
WHEREAS, legislation authorized in the 1997 legislative session provided
financing to partially reimburse public agencies for extraordinary costs incurred in 1996 for snow
removal and ice control; and
WHEREAS, the Division of Emergency Management of the Department of Public
Safety has allocated to Brooklyn Center $20,079.15 in reimbursement funds based on snow
removal and ice control expenses in 1996; and
WHEREAS, a wing snow plow was damaged beyond salvage during those snow
removal operations and should be replaced prior to the 1997 snow removal season; and
• WHEREAS, the following quotes have been obtained for labor and materials to
replace said plow; and
Vendor Quote
MacQueen Equipment $7,226.58
J -Craft $7,958.07
WHEREAS, the lowest responsible quote has been submitted by MacQueen
Equipment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that:
1. The 1997 General Fund Budget is amended as follows:
A. Intergovernmental Revenues is increased $20,079.
B. Street Maintenance Materials, Snow and Ice Control Division, is
increased $8,000.
C. Mobile Equipment, Snow and Ice Control Division, is increased
$7,227.
• D. Overtime, Regular Employees, and associated fringe benefits are
increased $4,852 in total.
Resolution No.
•
2. The purchase of a wing snow plow from MacQueen Equipment in the
amount of $7,226.58 is hereby approved.
Date Mayor
ATTEST:
Ci ty Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
�d
MEMORANDUM
•
DATE: June 18, 1997
TO: Michael McCauley, City Manager
FROM: Scott Brink, City Engineer 7
SUBJECT: Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 1997-
09, Contract 1997 -C, Sealcoating
Summary Explanation
Bids for Contract 1997 -C were received on June 11, 1997. This contract is for the annual
sealcoat program, which is budgeted at $100,000 annually in the Street Maintenance Divison.
The bidding results are tabulated as follows:
Bidder Bid Amount
Allied Blacktop Co. $67,737.73
Bituminous Roadways, Inc. $75,112.78
ASTECH Co rp.
83 308.18
Of the three bids received, the lowest bid of $67,737.73 was submitted by Allied Blacktop Co. of
Maple Grove, Minnesota. This is less than the original Engineer's Estimate of $68,000.00
Allied Blacktop Co. has experience in performing all of the requirements included in this contract, and
has performed many similar projects for the City of Brooklyn Center. Accordingly, staff recommends
acceptance of the low bid and award of the contract to Allied Blacktop Co.
Recommended City Council Action
Approve the attached resolution accepting the low bid and awarding a contract to Allied
Blacktop Co. of Maple Grove, Minnesota.
•
Member introduced the following resolution and moved
• its adoption:
RESOLUTION NO.
RESOLUTION ACCEPTING BID AND A AWARDING CONTRACT,
IMPROVEMENT PROJECT NO. 1997 -09, CONTRACT 1997C, 1997 SEALCOATING
WHEREAS, pursuant to an advertisement for bids for Improvement Project No.
1997 -09, bids were received opened, and tabulated by the City Engineer, on the 11th day of June,
1997. Said bids were as follows:
Bidder
Allied Blacktop $ 67,737.73
Bituminous Roadways $ 75,112.78
Astech Corp. $ 83,308.18
WHEREAS, it appears that Allied Blacktop Co., of Maple Grove, Minnesota is the
lowest responsible bidder.
• NOW THEREFORE BE IT RESOLVED b the City Council of the City of
y ty ry
Brooklyn Center, Minnesota that:
1. The Mayor and City Manager are hereby authorized and directed to enter
into a contract in the amount of $67,737.73, with Allied Blacktop Co., of
Maple Grove, Minnesota in the name of the City of Brooklyn Center, for
Improvement Project No. 1997 -09 according to the plans and specifications
approved by the City Council and on file in the office of the City ° Clerk.
2. The City Clerk is hereby authorized and directed to return forthwith to all
the bidders and deposits made with their bids, except that the deposit of the
successful bidder and the next lowest bidder shall be retained until a
contract has been signed.
3. All costs shall be charged to the Street Maintenance Division, Street and
Alley Repair.
• RESOLUTION NO.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
•
• MEMORANDUM
DATE: June 18, 1997
TO: Michael McCauley, City Manager
FROM: Scott Brink, City Engineer 09
SUBJECT: Resolution Accepting Bid and Awarding a Contract, Improvement Project No. 1997 -
11, Contract 1997 -J, Elevated Storage Tank Repair, Tower No. 2
Summary Explanation
Bids for Contract 1997 -J were received on June 18, 1997. This contract consists of
miscellaneous structural and coating repairs to Tower No. 2 (69th Avenue at Dupont).
The bidding results are tabulated as follows:
Bidder Bid Amount
TMI Coatings, Inc. $189,500
Odland P. C., Inc. $226,500
Abhe & Svoboda $281,110
Of the three bids received, the lowest bid of $189,500 was submitted by TMI Coatings, Inc.
This amount is less than the engineer's estimate of $205,000. An amount of $250,000 has
been budgeted in the 1997 water utility budget to cover the cost of these repairs. All costs
would be funded from the City's water utility fund.
TMI Coatings, Inc. has experience in performing the various items of work included in this
repair contract, and have performed many similar projects for municipalities throughout
Minnesota. Accordingly, staff recommends acceptance of the low bid and award of the
contract to TMI Coatings, Inc. of St. Paul, Minnesota.
Recommended City Council Action
Approve the attached resolution accepting the low bid and awarding a contract to TMI Coatings,
Inc.
•
Member introduced the following resolution and moved its
• adoption:
RESOLUTION NO. _
RESOLUTION ACCEPTING BID AND AWARDING A CONTRACT, IMPROVEMENT
PROJECT NO. 1997 -11, CONTRACT 1997 -J, ELEVATED STORAGE TANK REPAIR,
TOWER NO. 2
WHEREAS, pursuant to an advertisement for bids for Improvement Project No.
1997 -11, bids were received, opened, and tabulated by the City Clerk and Engineer, on the
18th day of June, 1997. Said bids were as follows:
Bidder Bid Amount
TMI Coatings, Inc. $189,500
Odland P. C., Inc. $226,500
Abhe & Svoboda $281,110
WHEREAS, it appears that TMI Coatings, Inc. is the lowest responsible bidder.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that:
• 1. The Mayor and City Manager are hereby authorized and directed to
enter into a contract with TMI Coatings, Inc. of St. Paul, Minnesota in
the name of the City of Brooklyn Center, for Improvement Project No.
1997 -11, according to the plans and specifications therefor approved by
the City Council and on file in the office of the City Engineer.
2. The City Clerk is hereby authorized and directed to return forthwith to
all bidders the deposits made with their bids, except that the deposit of
the successful bidder and the next lowest bidder shall be retained until a
contract is signed.
3. The estimated project costs and revenues are as follows:
ESTIMATED COSTS
Contract $189,500
Contingency(10 %) 18,950
Subtotal Construction Cost 208,450
Engineering 30,000
Administration 6.000
• Total Estimated Proj. Cost $244,450
RESOLUTION NO.
•
REVENUES
Water Utility $244,450
Total Estimated Revenue $244,450
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
• and the followin g g voted against the same:
whereupon said resolution was declared duly passed and adopted.
• MEMORANDUM
DATE: June 18, 1997
TO: Michael McCauley, City Manager
FROM: Scott Brink, City EngineeryO
SUBJECT: Resolution Accepting Work Performed and Authorizing Final Payment,
Improvement Project No. 1997 -07, Contract 1997 -A, Replacement of
Underground Storage Tanks and Fuel System, Central Garage
On February 10, 1997, per Resolution No. 97 -31, the City Council accepted a bid, and awarded a
contract in the amount of $152,236 to Zahl Equipment Company of Minneapolis, Minnesota for
the replacement of underground storage tanks and fuel system at the Central Garage.
Zahl Equipment Company has satisfactorily completed the work. The amount certified for
payment ($147,426.95) is $4,809.05 less than the original contract amount. This was due
primarily to certain anticipated work items that were not required, such as dewatering and
excavation of contaminated materials.
• A resolution accepting the work performed and approving final payment to Zahl Equipment
Company is attached for consideration.
• Member introduced the following resolution and moved its
adoption:
RESOLUTION NO.
RESOLUTION ACCEPTING WORK PERFORMED AND AUTHORIZING FINAL
PAYMENT, IMPROVEMENT PROJECT NO. 1997 -07, CONTRACT 1997 -A,
REPLACEMENT OF UNDERGROUND STORAGE TANKS AND FUEL SYSTEM,
CENTRAL GARAGE
WHEREAS, pursuant to a written contract signed with the City of Brooklyn Center,
Minnesota, Zahl Equipment Company has satisfactorily completed the following improvement in
accordance with said contract:
Improvement Project No. 1997 -07, Contract 1997 -A, Replacement of Underground
Storage Tanks and Fuel System, Central Garage.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn
Center, Minnesota that:
1. The work completed under said contract is accepted and approved according
to the following schedule, and the project is hereby declared final.
co As Established As Fi nal
• Contract $152,236.00 $147,426.95
Contingency (10 %) 12,634.00 0.00
Consulting Engineering 9,000.00 10,851.20
Staff /Administration 2,000.00 5,083.36
Site Restoration 0.00 3.472.37
TOTAL $175,870.00 $166,833.88
Revenues
Capital Impr. Fund $125,000.00 $125,000.00
Sanitary Sewer 25,435.00 20,916.94
Water 25,435.00 20,916.94
2. The actual value of the work performed is $4,809.05, less than the original
contract.
3. It is hereby directed that final payment be made on said contract, taking the
Contractor's receipt in full. The total amount to be paid for said improvement
under said contract shall be $147,426.95.
• RESOLUTION NO.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
•
6
• MEMORANDUM
DATE: June 18, 1997
TO: Michael McCauley, City Manager
FROM: Joyce Gulseth, Administrative Aide'
i
SUBJECT: Resolution Declaring a Public Nuisance and Ordering the Removal of Diseased
Trees
The attached resolution represents the official Council action required to expedite removal of the
trees most recently marked by the City tree inspector, in accordance with approved procedures.
It is anticipated that this resolution will be submitted for council consideration each meeting
during the summer and fall as new trees are marked.
I •
Member introduced the following resolution and
moved its adoption:
• RESOLUTION NO.
RESOLUTION DECLARING A PUBLIC NUISANCE AND ORDERING THE
REMOVAL OF DISEASED TREES (ORDER NO. DST 06/23/97 )
WHEREAS, a Notice to Abate Nuisance and Diseased Tree Removal Agreement
has been issued to the owners of certain properties in the City of Brooklyn
Center giving the owners twenty (20) days to remove diseased trees on the
owners' property; and
WHEREAS, the City can expedite the removal 4f these diseased trees by
declaring them a public nuisance:
NOW, THEREFOR, BE IT RESOLVED BY THE CITY COUNCIL of the City of
Brooklyn Center, Minnesota that:
1. The diseased trees at the following addresses are hereby declared
to be a public nuisance:
TREE
PROPERTY OWNER PROPERTY ADDRESS NUMBER
---------------------- - - - - -- ----------------------- - - - - -- -- - - - - --
• SUSAN KARPEN 6736 TOLEDO AVE N 31
SUSAN KARPEN 6736 TOLEDO AVE N 32
E. HAWAZ & M. TADESSE 4201 WOODBINE LA 33
E. HAWAZ & M. TADESSE 4201 WOODBINE LA 33
MARY DAHL 5418 BRYANT AVE N 34
LOGAN NORTH PROPERTIES 5830 LOGAN AVE N 35
LOGAN NORTH PROPERTIES 5830 LOGAN AVE N 36
LOGAN NORTH PROPERTIES 5830 LOGAN AVE N 37
GEORGE & PAMELA SCHUG, JR. 6731 BEARD AVE N 38
LOPAO VANG & BLIA LEE 5117 XERXES AVE N 39
RICHARD DAWSON 3955 69th AVE N 40
RICHARD DAWSON 3955 69TH AVE N 41
BOULEVARD PROPERTIES 5837 BROOKLYN BLVD 42
THEO. ELLIOT /LINDA ERDAHL 720 69TH AVE N 43
THEO. ELLIOT /LINDA ERDAHL 720 69TH AVE N 44
THEO. ELLIOT /LINDA ERDAHL 720 69TH AVE N 45
GARY BUMMER 504 69TH AVE N 46
DAVID EVANSON WEST OF 507 69TH AVE N 47
LEONARD & KAY LASMAN 4407 WOODBINE LA 48
PHILIP & SUSAN FERBUYT 5925 EWING AVE N 49
•
RESOLUTION NO.
• 2. After twenty (20) days from the date of the notice, the property
owner(s) will receive a second written notice providing five (5)
business days in which to contest the determination of the City
Council by requesting, in writing, a hearing. Said request shall
be filed with the City Clerk.
3. After five (5) days, if the property owner fails to request a
hearing, the tree(s) shall be removed by the City. All removal
costs, including legal, financing, and administrative charges,
shall be specially assessed against the property.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
member , and upon vote being taken thereon, the following
voted in favor thereof:
• and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
�h
•
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Sharon Knutson, City Clerk
DATE: June 18, 1997
SUBJECT: Licenses for Council Approval
The following companies /persons have applied for City licenses as noted. Each company /person
has fulfilled the requirements of the City Ordinance governing respective licenses and submitted
appropriate applications and paid proper fees.
Licenses to be approved by the City Council on June 23, 1997:
• GARBAGE AND REFUSE COLLECTION VEHICLES
Randy's Sanitation, Inc. P. O. Box 169, Delano
UWS /Gallagher's 95 West Ivy Avenue, St. Paul
Walter's Recycling and Refuse P. O. Box 67, Circle Pines
Walz Bros. Sanitation, Inc. P. O. Box 627, Maple Grove
MECHANICAL SYSTEMS
Cool Air Mechanical, Inc. 1441 Rice Street, St. Paul
D. A. Distribution 8282 Arthur Street NE, Spring Lake Park
Diversified Mechanical Services 1525 East 88th Street, Bloomington
Doody Mechanical, Inc.
dba United Sheet Metal 520 Front Avenue, St. Paul
Master Mechanical, Inc. 901 East 79th Street, Bloomington
Minnesota Heating & Air Cond. 10701 93rd Avenue North, #B, Maple Grove
RENTAL DWELLINGS
Morning Sun Investments 1519 Humboldt Place North
Morning Sun Investments 1525 Humboldt Place North
Morning Sun Investments 1531 Humboldt Place North
• Memorandum
To: Michael J. McCauley, City Manager
From: Tom Bublitz, Community Development Specialist
Date: June 18, 1997
Subject: Public Hearing Regarding Amendment of Year 1995 Statement of Projected Use
of Funds for the Urban Hennepin County Community Development Block Grant
Program and Resolution Amending the Urban Hennepin County Statement of
Projected Use of Funds for the Year 1995 by Reallocating $58,920.06 from the
Scattered Site Redevelopment Project to the 53rd Avenue Development and
Linkage Project
City Council Resolution No. 97 -92 authorized a public hearing to consider an amendment to the
City's 1995 Community Development Block Grant (CDBG) Projected Use of Funds. The
proposed amendment would reallocate approximately $58,920.06 from the Scattered Site
Redevelopment Project account to the 53rd Avenue Development and Linkage Project.
In the 1995 CDBG program, the City Council allocated $181,657.75 to the Scattered Site
Redevelopment Program. Of this 1995 amount, $122,755.65 was expended, leaving a balance of
$58,920.06. This $58,920.06 represents the approximate cost of the acquisition and clearance of
one scattered site property. With the establishment of the 53rd Avenue Development and
Linkage Project, the City focused its redevelopment efforts on the 53rd Avenue Development
and Linkage Project and away from scattered site redevelopment.
The City can reallocate the 1995 unexpended balance to the 53rd Avenue Development and
Linkage Project. To accomplish this reallocation, the City Council must hold a public hearing.
A public hearing has been scheduled for the June 23, 1997, City Council meeting to consider this
reallocation. A copy of the published public hearing notice is included with this memorandum.
The following is a summary of the current and proposed allocation of CDBG dollars for the 53rd
Avenue Development and Linkage Project.
1996 Allocation: $193,971.00
1997 Allocation: $180,856.00
1995 Proposed Reallocation: $58,920.06
Total: $433,747.06
• A Resolution Amending the Urban Hennepin County Statement of Projected Use of Funds for
the Year 1995 by Reallocating $58,920.06 From the Scattered Site Redevelopment Project to the
53rd Avenue Development and Linkage Project is included with this memorandum. The City
Council should take action on this resolution after holding the public hearing.
City of Brooklyn
(Official Publication)
full ^-! - Notice of Public Hearing -.
Amendment of Year 1996 Statement of Projected
Use of-Funds for the Urban Hennepin County
Community Development Block Grant
PlBLKJ1T10P5 NOTICE IS HEREBY GIVEN that Hennepin Count
&'"c nor sm"e" avrs~ ail the City of Brooklyn Center will hold a public hearnm
• ou June 2'3,1997, to consider a proposed amendment to th.
AFFIDAVIT OF PUBLICATION Year 1995• Statement of Projected- Use of Funds for th,
Urban Hennepin County Community Development Bloc
i
Grant Program, funded under Title I of the Housing an:
STATE OF MINNESOTA) Community Development Act of 1974, as amended.
The proposed amendment is the reprogramming c
$58,920.06 from the Scattered Site R_ eevelopment Projec
ss. toahe 53rd Avenue Development and Linkage Project
Copies of the proposed funding request are available a
COUNTY OF HENNEPIN) City Hall for review priorto0a.hearing. The Urban Hen
tiepin County Citizen Participation Plan is available at th
Denis L . M ] n d a k County offices at 10709 Wayzata Blvd., Suite 260, Mir.
being duly sworn on an oath says that he/she is netonka, Minnesota ,
', The hearing is to be held on June 23, 1997, at 7:00 RI NI
the publisher or authorized agent and employee of the publisher of the newspaper known as Hall i«�t� t 6301 Shingle. Creek Par kw a y, s,�k
Center; Minnesota..
Sun—Post _
_ and has full knowledge of the facts ; The public hearing is being held pursuant to a joint cc
operation agreement between Hennepin County and th.
which are Stated below. City of Brooklyn Center - pursuant to Minnesota Statute.,
Section 471.59..
Dated: May 27, 1997..
(A) The newspaper has complied with all of the requirements constituting qualification as a $ (June 4,1 997) PVCty Brk Ctr Block Gnnt
qualified newspaper, as provided by Minnesota Statue 331A.02, 331A.07, and other applicable
laws, as amended.
(B) The printed Notice of Public Heari
which is attached was cut from the columns of said newspaper, and was printed and published
once each week, for one successive weeks; it was first published
on Wednesday the `} day of June 19 and was thereafter
printed and published on every to and including
the - day of . 19 : and printed below is a copy of
the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the
size and kind of type used in the composition and publication of the notice:
abcdefgNk)mnopgrstuvwxyz
BY:
TITLE: P u b l i s h e r
Acknowledged before me on this
4 day of J n e . 19 97
No kry Public
_ NOTAri7 PUBU MINNESOTA
HE INE°IN COUNTY R
`�,1F�� . ►.'`? Ccrcrtissien �Ypir2s Jan.3i, 2000 a
RATE INFORMATION
(1) Lowest classified rate paid by commercial users $ 2.55 per line
for comparable space
�) Maximum rate allowed by law for the above matter $ 6.20 per line
(3) Rate actually charged for the above matter $ 1.20 per line
Member introduced the following resolution and
• moved its adoption:
RESOLUTION NO.
RESOLUTION AMENDING THE URBAN HENNEPIN COUNTY
STATEMENT OF PROJECTED USE OF FUNDS FOR THE YEAR 1995 BY
REALLOCATING $58,920.06 FROM THE SCATTERED SITE
REDEVELOPMENT PROJECT TO THE 53RD AVENUE DEVELOPMENT
AND LINKAGE PROJECT
WHEREAS, the City of Brooklyn Center, through a Joint Cooperation Agreement
with Hennepin County, is a participant in the Urban Hennepin County Community Development
Block Grant program; and
WHEREAS, the City of Brooklyn Center and Hennepin County have executed a
Subrecipient Agreement wherein the City agrees to assume certain responsibilities for the
implementation of approved community development activities in the Urban Hennepin County
Community Development Block Grant program; and
WHEREAS, the City of Brooklyn Center held a public hearing on June 23, 1997,
to consider public comments on a proposed amendment to the Year 1995 Urban Hennepin County
• Statement of Projected Use of Funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the' City of
Brooklyn Center, Minnesota, that the City of Brooklyn Center amends the Urban Hennepin
County Statement of Projected Use of Funds for the Year 1995 by reallocating $58,920.06 from
the Scattered Site Redevelopment Project to the 53rd Avenue Development and Linkage Project.
BE IT FURTHER RESOLVED that the City Council of the City of Brooklyn
Center authorizes the Mayor and City Manager to execute the required agreements with Hennepin
County to implement the subject amendment to the Year 1995 Urban Hennepin County Statement
of Projected Use of Funds.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
• and upon vote being taken thereon, the °following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
�Q.
3 City of Brooklyn Center
A great place to start. A great place to stay.
•
MEMORANDUM
TO: Mayor Kragness, Councilmembers Carmody, Hilstrom, Lasman, and Peppe
FROM: Michael J. McCauley, City Manager
DATE: June 19, 1997
SUBJECT: Resolution Authorizing the City to Enter into a Grant Agreement with the State of
Minnesota for Funding the Shingle Creek Regional Pond, Improvement Project
No. 1997 -17
The Minnesota Department of Trade and Economic Development has requested a resolution
authorizing the City to enter into a grant agreement with the State of Minnesota for funding for
the Shingle Creek Regional Pond and the designation of a person authorized to execute the
agreement on behalf of the City. The Department of Trade and Economic Development is
moving forward with the authorization received in the recent legislative session through the
• efforts of Speaker Carruthers, Senator Scheid, and Representative Carlson to provide $2 million
to assist in the development of the regional and for the redevelopment of Brookdale. This
P g P
would be the first step in that process with the Department of Trade and Economic Development.
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City 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
• its adoption: Member introduced the following resolution and moved
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A GRANT
AGREEMENT WITH THE STATE OF MINNESOTA FOR FUNDING THE
SHINGLE CREEK REGIONAL POND, IMPROVEMENT PROJECT NO. 1997-
17
WHEREAS, the 1997 Legislature appropriated $2,000,000 for a one -time grant to
the City of Brooklyn Center to facilitate redevelopment of the Brookdale regional center and
provide opportunities for economic development at or near the center by construction of a regional
storm water treatment pond; and
WHEREAS, to request this money, the City must enter into a grant agreement with
the Minnesota Department of Trade and Economic Development.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the City of Brooklyn Center is authorized to enter into a grant agreement
with the State of Minnesota for $2,000,000 for funding the Shingle Creek Regional Pond,
• Improvement Project No. 1997 -17. City Manager Michael J. McCauley is hereby authorized to
execute and sign the grant agreement on behalf of the City of Brooklyn Center.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
�U
• MEMORANDUM
DATE: June 17, 1997
TO: Michael McCauley, City Manager
FROM: Diane Spector, Director of Public Servicesr
SUBJECT: Discussion of Amending the Special Assessment Policy, Revising the Senior
Deferral Policy
The Council has on several occasions recently discussed the City's Assessment Stabilization
Program (ASP) and the senior deferral program of the special assessment policy. Specifically, 1) no
adequate permanent funding has ever been identified for the (ASP), which is currently funded from
Local State Aid, which is a fund used to finance street, enhancement, signal, trail, and sidewalk
projects; and 2) the senior deferral program is in need of refinement.
Senior Deferral
Brooklyn Center first adopted an assessment deferral program for seniors in 1978. The income limit
• for participation in the senior deferral program is established as the HUD two- person low income
limit, regardless of household size. In 1997 that limit is $34,800. Ass discussed in January, I would
recommend changing that cap to the very low income limit, by household size. For 1997, this would
reduce the income caps to the following:
Table 1
Proposed Revised Income Cap
Senior Deferral Program
Hotrsefiaid Current3ncome Revised Income
_ _ _
Size
Cap Cap
I person $34,800 $20,050
2 34,800 22,900
3 34,800 25,800
4 34,800 28,650
Over the past three years of the Assessment Stabilization Program, 128 senior households received
grants. If instead they had been participating in the senior deferral program, under this revised
• policy about 74 of those households would have been eligible to defer some of their special
assessment.
• The Council earlier this year had also discussed the possibility of capping the amount of interest
which accrues, and decided at that time not to create such a cap. Several items are attached for
Council review: the statutes enabling the senior deferral program; the City's current policy; and the
assessment policy as it would be amended should the Council approve the suggested change.
Assessment Stabilization Options
In previous discussions, the Council has understood the limited amount of funding available to
continue the ASP, but expressed a desire to continue to provide some type of financial relief to
property owners of limited means to assist in paying for street improvements. The existing senior
deferral program (which also applies to persons who are retired due to disability), would provide
financial relief for seniors, who received the bulk of the ASP grants. If the Council discontinues the
Assessment Stabilization Program, I can find no corresponding program which would provide relief
for the non - senior homeowners.
If the Council desires to provide financial relief for non - senior households, then the most fair would
be the creation of a deferral program for non - senior homeowners Parallel to the senior deferral
program. State statutes do not provide cities with the blanket authority to do so. However, as the
attached memorandum from City Attorney Charlie LeFevere points out, if the City Charter were to
be amended to provide this authority, then the council could create such a program.
• If such a program were in place in the Orchard Lane East project area, for example, and it paralleled
the senior deferral program, then about 19 non - senior property owners would have been eligible to
defer a part of their special assessment, compared to 38 who received a grant.
The Council should remember that a deferral program is not free. Every deferral means some
assessments are not available to pay for current costs. For every assessment dollar which is deferred
to some future date when a home is sold, the City has to come up with a current replacement dollar,
whether through an increased level of special assessment bonds or a cash source such as the Local
State Aid Fund to "pay" for the deferred assessments. A deferral program moves the financing
burden from the homeowner to the City.
If the Council desires to pursue this option, then it should refer the matter to the Charter Commission
for review and recommendation.
Draft Resolution
A draft resolution which would a) provide for the amendments to the senior deferral program of
assessment policy and b) amend the assessment policy to discontinue the Assessment Stabilization
Program is provided for Council discussion.
•
ATTACHMENT 1
r
53" ?UBUC 07HIR ?sLY'WDf�GS �35._J=
- 43:.193 SENIOR CITIZENS OR RETIRED .--`+D DISABLED PER—SONS Hw0D-
SHIP SPECL-kL ASSESSMENT DEFER.R.�L..
Notvithstanding the provisions of anv taw•to tae c0r1E7arJ', anv count statucory
or acme rule charter ca /, or :owe,, mating a scecial assessment umav, at its discretion,
aecer the payment of that as sessiiienc for any no mestead p ros e ^f Owned bv a person
0i ' ears oI age Orolder oC tOCal dlSabllit7 IOC whom
I s would be a hardship to mak<- the caytne nts..-.nv count., stacutcry or 'come ^ufe char-
ter city, or town electing to defer special assessu snail adopt an ordinance or resolu-
don establishing standards and guidelines for dete^lin.i.rg the existence of a hardship
and for determining the existence of a disabLlier, but nothing herein shall be construed
to prohibit the determination of hardship on the basis of exceptional and unusual cir-
cunstances not covered by the standards had guidelines where the deter ninaLion is
made in a nondiscriminatory manner and does not give the applicant an unreasonable
preference or advantage over other applicants.
History: 1974 c 206 s 7: 1976 c 19: s 3: 1981 c 30 s 1
13 - PROCEDURE TO OBT.-UN DEFERRED .ASSESSME`+T.
The homeowner shaii :hake a?ciicatice for deier-ed pa rment of special assess-
meats on for s Dress ^pod v : e CeunrY auditor o , he :ouIIty i s wCitcn :he aCtT.eStea :
is located. ��'core :ae Bete -e: assessrneac ;s ;~anted, zhe auditor shall r ecord; .ucice
t e'zoi with w:ie col:Il- re�OCde: Oi 3, � -.^.0 : '' Shad Set forth the 3I:i0u.1C 01 th
assessment. T ie : auction^ Mai _et °. :ru t by arC1na -^.c. o resolution t,`.e a:,,IounC
• Of !r:ereSt, iI arv. On the de:err. assessment and this mLe shall be retarded by t audl-
mr along %4i h and n .n the sa e manner as :he amount of :he assessr ieat.
History: 197 c Z06 s 3: 1� "6 . !3! s _. 19'6 !9- s .
1
- 435.195 TER_NM ATION OF RIGHT TO DEFER.RED PAYNLE - N+T.
I -.e option to defer the pavt_,e of speciai assessments snail :e^ rate and all
amounts accumulated plus ac disable interest. shall become due upon - he Occcu
oI =v of the Iollowing ev (a) :he death oI th owner, provided t the Scouse is
othe^.vise not eligible for the b n h ereu z der: (b) the sale, transfer or s of
the property or any par thereof: (c) if -fie prope ^r should for any -vason lose its aome-
sLead staCus: or (d) U IOC an reason t:. :acing au hcC:LV d'Lz ^.:ng the owr shall
de 'hat there would Ce n0 a. '11p :O :ef�llL u:I,T :edi3Ce or 7ar::3l '.Ja' enL.
History- 1971 c 206 s 9
ATTACHMENT 2
CITY OF BROOKLYN CENTER JUNE, 1990
SPECIAL ASSESSNIZNT DEFERMENT POLICY
•
WHEREAS, Minnesota Statutes 435.193 through 435.195 provide for the deferment of special assessments and
specify the conditions under which municipalities are authorized, on a voluntary basis, to defer such assessments; and
WHEREAS, the City Council of the City of Brooklyn Center found and determined that deferral of special
assessments for certain persons is in the public interest and passed City of Brooklyn Center Resolution No. 78 -87
providing for deferment of special assessments for persons 65 years of age or older and Resolution No. 85 -143 extending
that provision to persons retired due to permanent and total disability.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center,
Minnesota, that the special assessment deferral policy is hereby amended to provide for deferral of special assessments
certified after the adoption of this resolution [June 11, 19901 under the following, conditions:
1. The property upon which the assessment is deferred must be homesteaded;
2. The property is owned by a person at least 65 years of age on January 1st of the year in which payment of the
first installment of the subject assessment levy is due: or is owned by a person who is retired due to permanent
and total disability.
• 3• The applicant must have a "financial hardship" defined as:
a. An annual income at or below a level to be established annually [521,60 in 1990]; and
b. The aggregate total of special assessment installments from previously - existing special assessment levies
plus the first year of the current levy will exceed percent of the applicant's annual income.
4. The portion of the current levy which will be deferred will be that portion of the levy against the applicant's
property which requires a first year installment payment which, when added to the applicant's annual payment
from previously existing special assessment levies, would result in an aggregate total of special assessment
installments totaling more than percent of the applicant's annual income. The portion of the current levy
which can be paid without aggregating total installments above 1 -I/ percent of the applicant's annual income
shall not be deferred.
5. Special assessments levied due to the applicant's failure -to -pay charges for City services or failure to comply
to City codes (i.e. delinquent utility assessments, assessments for weed removals, assessments for nuisance
abatement, etc.) shall not be deferred, and installment payments for existing levies for such services shall not
be included in calculating the maximum 1 -' percent aggregate payment defined in paragraph 4 above.
BE 71 FURTHER RESOLVED that interest at the rate for that particular assessment levy shall be added to the
deferred assessment and shall be payable in accordance with the terms and provisions of Minnesota Stan!tes 1 and
• BE IF - .�
FL;RTHER RESOLVED that the nigh, :o defer assessments in hereby , =mated when the subject propem
owner no longer meets the criteria established in this resolution except that a surviving spouse of a qualified applicant
need not meet the age requirement.
ATTACHMENT 3
City of Brooklyn Center Special Assessment Policy
•
SECTION IV. ASSESSMENT DEFERRAL PROGRAM
There shall exist a program to defer a portion of the special assessments of qualifying persons
under the provisions of Minnesota Statutes 435.193 through 435.195. Said program shall defer the
payment of a portion of certified special assessments by property owners who are at least 65 years of
age or older or who are retired due to permanent and total disability whose households meet certain
financial characteristics.
A. Eligibility
1. The property upon which the assessment is deferred must be homesteaded;
2. The property is owned by a person at least 65 years of age on January 1st of the year in
which payment of the first installment of the subject assessment levy is due; or is
owned by a person who is retired due to permanent and total disability.
3. The applicant must have a "financial hardship" defined as:
a. annual
Income for the applicant's household size which is at or below the "Very Low
• Income" limit established annually by HUD for the Minneapolis and St.Paul
Metropolitan Area.
b. The aggregatetotal of special assessment installments from previously - existing
special assessment levies plus the first year of the current levy will exceed 1 -
percent of the applicant's annual income.
B. Calculation
1. The portion of the current levy which will be deferred will be that portion of the levy
against the applicant's property which requires a first year installment payment which,
when added to the applicant's annual payments from previously existing special
assessment levies, would result in an aggregate total of special assessment installments
totaling more than 1 -'h percent of the applicant's annual income. The portion of the
current levy which can be paid without aggregating total installments above 1 -
percent of the applicant's annual income shall not be deferred.
2. Special assessments levied due to the applicant's failure -to -pay charges for City
services or failure to comply to City codes (i.e. delinquent utility assessments,
assessments for weed removals, assessments for nuisance abatement, etc.) shall not be
deferred, and installment payments for existing levies for such services shall not be
included in calculating the maximum 1 - percent aggregate payment defined in
• paragraph B.1. above.
June, 1997 Page 8
City of Brooklyn Center Special Assessment Policy
•
C. Interest
Simple interest at the rate of that particular assessment levy shall be added to the
deferred assessment calculated from the date interest started to accrue on the original
levy (usually the October 1 immediately following the certification date) to the date of
payment of the deferred portion of the assessment
D. Termination
The option to defer the payment of special assessments shall terminate and all amount
accumulated plus applicable interest, shall become due upon the occurrance of one of
the following events:
1. The death of the owner, provided that the spouse is otherwise not eligible for the
benefits.
2. The sale, transfer, or subdivision of the property or any part thereof.
3. If the property should for any reason lose its homestead status.
4. The City Council determines that a hardship no longer exists.
•
•
June, 1997 Page 9
470 Pillsbury Center ATTACHMENT 4
200 South Sixth Street
Minneapolis MN 55402
(612) 337 -9300 telephone
a G raven ( 337 -9310 fax
CHARTERED e -mail: atrys@kennedy- graven.com
CHARLES L. LEFEVERE
Attorney at Law
Direct Dial (612) 337 -9215
March 24, 1997
Ms. Diane Spector
Director of Public Works
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center MN 55430
RE: Assessment Stabilization Program
Dear Diane:
You have asked for my comments about how the City might provide for the deferral of special
• assessments based on need in addition to the deferral of special assessments for senior citizens.
Cities are authorized to adopt an ordinance providing for deferral of assessments for : persons who
are 65 years of age or older or retired by virtue of a permanent and total disability for whom it
would be a hardship to make payments, by Minnesota Statutes Secs. 435.193 to 435.195. There
is no corresponding authority for the deferral of special assessments for others based on hardship
or need.
However, I see no reason why such authority could not be conferred on the City Council by
charter amendment: If the Council wishes to consider this option, I would recommend that a new
section be added to Chapter 8 of the charter as Section 8.05 which might provide something
along the following lines:
Section 8.05. DEFERRAL OF ASSESSMENTS The City Council, at its
discretion, may defer the payments of special assessments for any homestead
property owned by a person for whom it would be a financial hardship to make
the payments. If the Council elects to defer special assessments it shall adopt an
P � P
ordinance or resolution o ution establishing standards and guidelines for determining the
existence of a hardship, and may also make a determination of hardship on the
basis of exceptional and unusual circumstances not covered by the standards and
guidelines where the determination is made in a non - discriminatory manner and
does not give the applicant an unreasonable preference or advantage over other
• applicants. The option to defer the payment of special assessments shall terminate
and all amounts zccumulated plus applicable interest, shall become due upon the
occurrence of any of the following events:
CL1119853
ER291 -1(J
Ms. Diane Spector
• March 24, 1997
Page 2
(a) The death of the owner, provided that the spouse is otherwise not
eligible for the benefits of such deferral;
(b) The sale, transfer or subdivision of the property or any part thereof;
(c) If the property should for any reason lose its homestead status; or
(d) If for any reason the Council deferring the payments shall
determine that there would be no hardship to require immediate or
partial payment.
Please let me know if you have any questions or comments about this idea or if you would like
to have me prepare a charter amendment ordinance for consideration by the Council and Charter
Commission.
Very truly yours,
• Charles L. LeFevere
CLL:lh
•
CLL119853
SP291 -10
DRAFT.
Member introduced the following resolution and moved
• its adoption:
RESOLUTION NO.
RESOLUTION AMENDING THE CITY OF BROOKLYN CENTER'S SPECIAL
ASSESSMENT POLICY
WHEREAS, the City Council by Resolution No. 93-49 established an Assessment
Stabilization Program; and
WHEREAS, the City Council finds that sufficient funds are not available to
continue financing said Assessment Stabilization Program; and
WHEREAS, the City Council by Resolution No. 78 -87 established a policy
providing for the deferral of special assessments under the provisions of Minnesota Statutes
435.193 through 435.195. Said policy was subsequently amended by Resolutions 85 -143 and- 90-
137; and
• WHEREAS, the City Council desires to update the City's Deferment of Special
Assessments Policy; and
WHEREAS, the City Council by Resolution No. 94 -274 adopted a Special
Assessment Policy which incorporated numerous policies related to special assessments for
improvement projects into a single document.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that the City of Brooklyn Center's Special Assessment Policy is
hereby amended as follows:
1. The Assessment Stabilization Program is hereby discontinued.
2. The Deferment of Special Assessments Policy is hereby amended as
follows:
"Financial hardship is defined as having an annual income for the
household's size which is at or below the "Very Low Income" limit
established annually by HUD for the Minneapolis and St. Paul
• Metropolitan Area.
DRAFT
• Resolution No.
3, The City of Brooklyn Center's Special Assessment Policy is hereby
amended to delete references to the Assessment Stabilization Program and
to insert the Deferment of Special Assessments Policy as amended by this
resolution.
Date Mayor
ATTEST:
• City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director
DATE: June 18, 1997
SUBJECT: Comprehensive Annual Financial Report for the Year Ended
December 31, 1996
Representatives of the City's auditors, Deloitte & Touche LLP, will be at the June 23,
1997 City Council meeting to present the fmancial reports and the results of the annual
audit. Included in the agenda packet are the followin g reports:
Comprehensive Annual Financial Report
Resolution Accepting the Comprehensive Annual Financial Report and Ratifying
Interfund Loans
Schedule of Federal Financial Assistance
Auditor's Letter to the City Council
Auditor's Management Letter
Responses to the Auditor's Management Letter
MEMORANDUM
•
TO: Michael J. McCauley, City Manager
FROM: Tim Johnson, Asst. Finance Directof -- .
DATE: June 18, 1997
RE: RESPONSES TO THE AUDITOR'S MANAGEMENT LETTER
At the June 23, 1997 City ouncil meeting, Hoffman of Delo'
tY g, itte & Touche will make a
presentation on the
p audit of city operations for the year 1996. He will review several reports,
including a Management Letter which makes five recommendations regarding administrative and
operating issues. This memo provides the Management Responses to the Auditor's Management
Letter.
SINGLE AUDIT ACT CHANGES
ACCOUNTING AND REPORTING FOR INVESTMENTS - GASB 31
• FINANCIAL REPORTING MODEL - PROPOSED GASB STATEMENT
As with all new accounting pronouncements and regulations, the Finance Department will review
and implement the applicable standards as recommended by Deloitte and Touche, LLP.
CELL PHONE USAGE AND POLICY
A more comprehensive policy concerning City and personal use of cellular telephones is currently
being written by staff. In the interim, the City has a cellular telephone policy which requires
department heads or supervisors to review the cellular telephone charges for compliance to the
existing policy. The existing policy is attached.
DEPARTMENT OF HIGHWAYS - 5 % RETAINAGE ON HIGHWAY PROJECTS
See attached memo from Diane Spector, Public Services Director.
•
City of Brooklyn Center
Memorandum
To: City Staff Assigned Cellular Phones e,L
FROM: Nancy Gohman, Assistant City Manager
DATE: November 2, 1995
SUBJECT: Use of Cellular Phones
There are a number of employees who have daily access and are assigned use of a cellular
phone. The phones are a convenience and an efficient way for inspectors, officers, etc. to keep
in touch with the office and also allows them to contact other individuals when in the field or
traveling. The difference between the phone on your desk and your cellular phone is that the
City is billed for air time for any calls made on the cellular phone. The receiving and placing
of local telephone calls for personal reasons when using a cellular phone should be kept to a
minimum. In our contract, the City is allowed $25 per month in cellular phone use. If each
of us uses good judgment, we will be able to maintain the cellular phone use within the monthly
billing rates or as essentially needed to perform our job functions.
• I expect employees to reimburse the City or excessive use of the cellular hones above and
Y P
beyond the regular, normal work - related calls. Department heads and supervisors are
responsible for reviewing phone bills. I expect the bills to be spot checked on a regular basis
to ensure the cellular phones are being used to conduct normal City. business.
Please call me at extension 3303 if you have questions regarding this.
•
• Public Services Department
MEMORANDUM
Govt
Buildings
TO: Tim Johnson
Engineering FROM: Diane Spector
Streets SUBJ: Management Response to Audit Comment
DATE: June 18, 1997
Parks
Public I have the following comments regarding the audit observation entitled
Utilities "Department of Highways" and associated recommendation.
As you know, the State holds on account for us funding for Municipal State Aid
projects. These projects can include state aid roadway repairs, signal projects,
Recreation landscaping on state aid routes, etc. This fund includes reserves from previous
s years plus an annual apportionment.
• Central When the contract of an approved state aid project is let, the City prepares a
Garage substantial set of paperwork and forwards it to Mn/DOT's Office of Municipal
State Aid. After review, the State releases funding equal to 95 percent of the
contract, plus the total amount of preliminary engineering cost reimbursement.
Upon completion of the project and finalization of the contract, an additional set
of paperwork is prepared and submitted. Again, after review, the difference
between the final contract cost and the amount which had earlier been released
is released to the City, along with reimbursement for construction engineering,
right of way costs, etc.
Because once the City submits a final request for payment the state effectively
closes its books on the project, it is important that all reimbursable costs,
including engineering time, be known or expended prior to the final request.
There is very often a gap of several months or even years between when a
project is substantially completed and when every detail is final. Therefore, a
considerable amount of time often passes before that final request is submitted.
Unless very considerable change orders have occurred on a project, the final
request is usually small compared to the original request. Since we get most of
the contract cost up front, before expenditures take place, we earn interest on
the 95 percent released, which offsets much of the concern about waiting several
months or longer to receive the final 5 percent. There is also sufficient funding
in the Local State Aid account to provide for the necessary cash flow.
•
At the end of 1996, there were 8 projects encumbered with State Aid; in other words, 8 projects had
been reported to them and we had received the 95 percent of contract amounts. Of those eight, two
final cost reimbursement requests were "in the pipeline;" in other words, we had prepared the requests
and submitted them, but they were in the middle of the Mn/DOT review process and hadn't yet been
fmalled by them and been released. Of the remaining six, two were new projects in 1996 and were
nowhere near being ready to final. Of the remaining four, three were parts of the same one project that
had distinct State Aid project numbers assigned. (State Aid roads are assigned segment numbers. If an
improvement project crosses over those segment lines, then multiple State Aid project numbers are
assigned. One large City project may have two, three, or more State Aid project numbers.) That
project, plus one additional, had not yet (and have still not yet) been prepared for final request.
•
Member introduced the following resolution and moved its adoption:
•
RESOLUTION NO.
RESOLUTION ACCEPTING THE COMPREHENSIVE ANNUAL FINANCIAL
REPORT OF THE CITY OF BROOKLYN CENTER FOR THE CALENDAR YEAR ENDED
DECEMBER 31, 1996 AND RATIFYING INTERFUND LOANS
----------------------------------------------------------------------------------- ------------------------------------
WHEREAS, the City f Brooklyn Center is required b state law and City ty Y
q Y Y Charter
to annually produce audited financial statements by June 30; and
WHEREAS, the attached financial statements have been audited by Deloitte &
Touche LLP as required; and
WHEREAS, the City Charter gives the City Council the power to make interfund
loans as may be deemed necessary and appropriate.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota as follows:
1. that the Comprehensive Annual Financial Report of the City of Brooklyn
• Center for the Calendar Year ended December 31, 1996 is accepted.
2. that the interfund loan balances as displayed in Note 8 on Page 39 of the
financial report are hereby approved and ratified by the City Council.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Deloifte &
• Touche LL
400 One Financial Plaza Telephone: (612) 397 -4000
120 South Sixth Street Facsimile: (612) 397 -4450
Minneapolis, Minnesota 55402 -1844
April 30, 1997
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 (the City) for the
year ended December 31, 1996 and have issued our report thereon dated April 30, 1997.
Our professional standards require that we communicate with you concerning certain matters that may be
of interest to you in fulfilling your obligation to oversee the financial reporting and disclosure process for
which management of the City is responsible. We have prepared the following comments to assist the
Mayor and City Council in fulfilling that obligation.
Our Responsibility under Generally Accepted Auditing Standards:
Our responsibility under generally accepted auditing standards and Government Auditing Standards,
issued by the Comptroller General of the United States, has been described to you in our engagement
letter dated December 6, 1996. As described in that letter, those standards require that we plan and
perform the audit to obtain reasonable, rather than absolute, assurance about whether the general purpose
financial statements are free of material misstatement. Those standards also require that we obtain an
understanding of the City's internal control structure sufficient to enable us to properly plan our audit. We
have previously issued a separate report to you, also dated April 30, 1997, containing our comments on
the internal control structure.
Significant Accounting Policies:
The City's significant accounting policies are disclosed in the notes to the general purpose financial
statements. There were no changes in these policies during 1996.
Management Judgments and Accounting Estimates:
Accounting estimates are an integral part of the financial statements prepared by management and are
based upon management's current judgments. Those judgments are normally based on knowledge and
experience about past and current events and assumptions about future events. All of the significant
management judgments and accounting estimates in the 1996 general purpose financial statements were
normal and recurring and were determined on bases consistent with those used in prior years.
•
Deloittebuche
Tohmatsu
International
• Honorable Mayor and Members of the City Council
City of Brooklyn Center, Minnesota
April 30, 1997
Page 2
Other Information in the Annual Report:
When audited financial statements are included in documents containing other information, such as the
City's Comprehensive Annual Financial Report, generally accepted auditing standards require that we
read such other information and consider whether it, or the manner of its presentation, is materially
inconsistent with the information, or the manner of its presentation, in the general purpose financial
statements audited by us. We have read the other information in the City's Comprehensive Annual
Financial Report and have inquired as to the methods of measurement and presentation of such
information. If we had noted a material inconsistency, or if we had obtained any knowledge of a material
misstatement of fact in the other information, we would have discussed this matter with management and,
if appropriate, with the Mayor and City Council.
Difficulties Encountered in Performing the Audit:
We experienced no difficulties in dealing with management relating to the performance of our audit. We
received the full cooperation of management and staff. Our audit scope was essentially the same as
reviewed with you in our December 6, 1996 engagement letter. We believe that we have direct and
unrestricted access to the City's senior management and to the Mayor and City Council.
This report is intended solely for the use of the Mayor and City Council and should not be used for any
other purpose. This restriction is not intended to limit the distribution of this report, which, upon
acceptance by the City, is a matter of public record.
We will be pleased to further discuss this report with you at your convenience.
Yours truly,
Deloitte &
Touche LL
400 One Financial Plaza Telephone: (612) 397 -4000
Ow 120 South Sixth Street Facsimile: (612) 397 -4450
Minneapolis, Minnesota 55402 -1844
April 30, 1997
Honorable Mayor and Members
of the City Council
City of 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, 1996 (on which we have issued our report dated
April 30, 1997), we considered its internal control structure 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 internal control structure. In connection therewith, we submit this Commentary Report
containing our comments, observations, and recommendations concerning administrative and operating
matters which resulted from our audit of the City's 1996 general purpose financial statements.
Our observations and recommendations are resented under the following main captions:
P g P
I. Administrative and Operating Matters
II. Status of Prior -Year Recommendations
This report is intended solely for the information and use of the Mayor and City Council, management,
and others within the organization.
We will be pleased to discuss these recommendations with you and, if desired, to assist you in
implementing any of them.
Yours truly,
Deloittebuche
Tohmatsu
International
EXHIBIT I
ADMINISTRATIVE AND OPERATING MATTERS
Single Audit Act Changes:
Observation:
There are major Bud OMB
changes affecting future single audits. Office of Management and et
g g g g g( )
Circular A -133, Audits of Institutions of Higher Education and Other Nonprofit Institutions, has been
revised and will be effective for fiscal 1997. The new circular replaces both previous OMB
P
Circulars A -133 and A -128, which were generally applicable to audits of federal financial assistance
received by nonprofit organizations and state and local governments, respectively.
Some of the changes included in the revised A -133 Circular that will affect the City include the following:
There are additional reporting requirements for the auditee. First, a summary of prior -year audit
findings must be completed and submitted by the auditee. In addition, a "Certification of Audit" form
and required additional information must be completed by the auditee and submitted with the single
audit reports. Single audit reports and the additional information must now be sent to a national
clearinghouse location where they will be distributed to other federal departments.
A risk -based method of determining major programs for testing is now in effect. This means that the
federal programs previously not audited may be subject to testing on future audits.
The due date for submission of single audit reports has been shortened to nine months after the end of
the period subject to audit from the previous 13 -month requirement. This shortened due date will be
effective beginning in fiscal 1999.
With the dollar limit on single audits being increased from $100,000 to $300,000 for federal funds
expended, it appears that the City will be best served from a cost perspective with "program" audits.
Recommendation:
None. This comment is provided to inform you of changes occurring at the federal level.
Accounting and Reporting for Investments
Observation:
During March 1997, the Governmental Accounting Standards Board (GASB) issued Statement No. 31,
Accounting and Financial Reporting for Certain Investments and for External Investment Pools. This
statement establishes accounting and financial reporting standards for all investments held by
governmental external investment pools. For governmental entities other than external investment pools,
defined benefit pension plans, and Internal Revenue Code Section 457 deferred compensation plans, it
also establishes accounting and financial reporting standards for investments in interest - earning
investment contracts, external investment pools, open -end mutual funds, debt securities, equity securities
(including unit investment funds and closed -end mutual funds), option contracts, stock warrants, and
is stock rights that have readily determinable fair values.
2
a
The accounting and financial reporting standards established by GASB Statement No. 31 call for the City
to report investments at fair value in the balance sheet (or other statement of financial position). Fair
value is the amount at which an investment could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale (i.e., market value). The City may report at amortized
cost money market investments and participating interest - earning investment contracts that have a
remaining maturity at time of purchase of one year or less, provided that the fair value of those
investments is not significantly affected by the impairment of the credit standing of the issuer or by other
factors.
All investment income, including changes in the fair value of investments, should be recognized as
revenue in the operating statement (or other statement of activities). When identified separately as an
element of investment income, the change in the fair value of investments should be captioned net
increase (decrease) in fair value of investments. Realized gains and losses should not be displayed
separately from the net increase (decrease) in the fair value of investments in the financial statements,
except that realized gains and losses may be separately displayed in the separate reports of governmental
external investment pools.
The provisions of GASB Statement No. 31 are effective for financial statements of periods beginning
after June 15, 1997. Earlier application is encouraged. Accounting changes adopted to conform to the
provisions of this statement should be applied retroactively, if practical, by restating financial statements
of all prior periods presented. If restatement of financial statements for prior periods presented is not
practical, the cumulative effect of applying this statement, if any, should be reported as a restatement of
beginning fund balance or retained earnings, as appropriate, for the earliest period restated.
Recommendation:
We would be pleased to assist the City with reviewing the provisions of GASB Statement No. 31 and
determining the appropriate future accounting and reporting implications.
Financial Reporting Model:
Observation:
During January 1997, the Governmental Accounting Standards Board issued a proposed statement, Basic
Financial Statements -and Management's Discussion and Analysis for State and Local Governments, in
an exposure draft format. This proposed statement establishes accounting and financial reporting
standards for general purpose external financial reporting by state and local governments, including the
basic financial statements and management's discussion and analysis (MD &A). It establishes the general
outline and minimum content of the comprehensive annual financial report (CAFR). The new
components of a CAFR are established as:
I. Introductory section
II. Financial section
A. Management's discussion and analysis
B. Basic financial statements (including an entity -wide perspective and a fund perspective)
C. Required supplementary information
D. Combining and individual fund statements and schedules
III. Statistical section
3
The major changes in the current reporting model represent the MD &A section and basic financial
statements, which include statements prepared from both an entity-wide perspective and a fund
perspective. The requirements of the exposure draft are effective for financial statements of periods
beginning after June 15, 2000.
Recommendation:
We would be pleased to assist the City in reviewing the provisions of the exposure draft on state and local
governments' basic financial statements and determining the appropriate changes that will need to be
made to the City's current financial reporting model when adopted.
Cell Phone Usage:
Observation:
In the past year, cell phone usage at the state level has come under intense scrutiny by the media. Several
issues related to cell phone usage have resulted from this attention including personal usage, tracking of
cell phone expenses, and the overall practicality of their distribution to various individuals within
government. The City of Brooklyn Center has had a written policy regarding cell phone usage since
1995. Currently the City has 42 cell phones of which 21 are in public safety. The annual cost for cell
phones was approximately $14,000 in 1996 or an average of $1,167 per month.
Recommendation:
In order to ensure that there is no inappropriate usage of city issued cell phones, all usage should be
tracked by individual by department each month. The data should be summarized and submitted to
finance and the City Manager for review periodically of individual usage which is much higher than their
peers.
Department of Highways:
Observation:
The state holds back 5% of total project funding costs for all highway projects. When projects are
completed, the city submits the necessary paperwork in order for the state to release the held funds. D &T
noted that no prior -year amounts have been collected ($54,503) and that two additional projects (which
totaled $78,475) have been added to the balance.
Recommendation:
The city should ensure that all requests for Department of Highway funds are submitted on a timely basis
in order to prevent possible delays and administrative issues related to the withheld funds.
4
STATUS OF PRIOR -YEAR COMMENTS
Calculation of Liability for Postretirement Health Benefits:
During 1995, we recommended that the City obtain an actuarial valuation to provide a more accurate
estimate of future postretirement health obligations. The City has reviewed the recommendation and has
concluded that the cost to perform such a valuation outweighs the potential benefit of having a more
accurate estimate. The current method of estimating the liability is considered adequate for funding
purposes.
Disbursements - Check Requests:
During 1995, we recommended that the City develop a separate request form for manual checks as a way
to prevent duplicate payments from being made. The City has greatly reduced the number manual checks
by performing weekly check runs; thus, a separate manual check request form is no longer necessary.
Accounting for Earle Brown Heritage Center Catering Operations:
During 1995, we recommended that the City assume all accounting functions for the catering operations
at the Heritage Center in order to obtain more timely information. Currently, the City plans to assume
responsibility for the Accounts Receivable and Cash receipts functions. The City is reviewing whether to
assume additional accounting functions in the future.
Fire Department Relief Association Investment Portfolio Management:
• During 1995, we recommended that the City and Fire Department Relief Association (FDRA) consider
allowing the Public Employees Retirement Association (PERA) to manage the FDRA's assets. Based on
comparison, the PERA had realized a higher rate of return over the preceding three years. The City and
FDRA are considering a change in the investment parameters for the funds to allow for a higher
percentage of equity -type investments.
i
5
1
1
1
1
1
CITY OF BROOKLYN CENTER
Schedule of Community Development
Block Grant for the Year Ended December 31,
1996 and Independent Auditors' Reports
1
i
1
1
1
1
1
1
1
' CITY OF BROOKLYN CENTER, MINNESOTA
' TABLE OF CONTENTS
Page
' INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF COMMUNITY
DEVELOPMENT BLOCK GRANT EXPENDITURES 1
SCHEDULE OF COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES 2
' NOTES TO SCHEDULE OF COMMUNITY DEVELOPMENT BLOCK GRANT
EXPENDITURES 3
' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN
AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS 4
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL
STRUCTURE BASED ON THE AUDIT OF THE FINANCIAL STATEMENTS 5
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 7
Deloifte &
TouchO LL
400 One Financial Plaza Telephone: (612) 397 -4000
/\ 120 South Sixth Street Facsimile: (612) 397 -4450
Minneapolis, Minnesota 55402 -1844
INDEPENDENT AUDITORS' REPORT ON THE SCHEDULE OF
COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES
Honorable Mayor and Members of the City Council
City of Brooklyn Center, Minnesota
We have audited the Schedule of Community Development Block Grant Expenditures for the year ended
December 31, 1996. This schedule is the responsibility of the management of the City of Brooklyn
Center, Minnesota (the City). Our responsibility is to express an opinion on this schedule based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the schedule is free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the schedule. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall schedule presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the Schedule of Community Development Block Grant Expenditures presents fairly, in all
material respects, the expenditures of such project during the year ended December 31, 1996, in
conformity with generally accepted accounting principles.
This report is intended for the information of the Mayor and City Council members, management, others
within the City of Brooklyn Center, Minnesota, and the applicable federal and Hennepin County agencies.
However, this report is a matter of public record and its distribution is not limited.
a
April 30, 1997
' DeloitteTouche
Tohmatsu
International
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES
YEAR ENDED DECEMBER 31, 1996
Expenditures:
Private property rehabilitation projects $46,062
Scattered site redevelopment 34
53rd Avenue Project (relocation expenses) 9.602
$55.698
See notes to the schedule.
L�
2
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO SCHEDULE OF COMMUNITY DEVELOPMENT BLOCK GRANT EXPENDITURES
YEAR ENDED DECEMBER 31, 1996
I. SIGNIFICANT ACCOUNTING POLICIES
The Schedule of Community Development Block Grant (the Program) Expenditures is prepared on
the modified accrual basis of accounting. Expenditures are recognized when they become a
demand on current financial reserves. Encumbrances are used during the year for budgetary
control purposes and lapse at fiscal year -end.
The grant is managed by the City of Brooklyn Center.
2. PROGRAM FUNDING
Expenditures incurred under the Program are reimbursable from federal funds under the U.S.
Department of Housing and Urban Development (CFDA #14.218) as passed through via the
Hennepin County Community Development Block Grant to the City of Brooklyn Center.
3
Deloifte &
buche LL
400 One Financial Plaza Telephone: (612) 397 -4000
120 South Sixth Street Facsimile: (612) 397 -4450
Minneapolis, Minnesota 55402 -1844
1
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE
BASED ON AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS
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 December 31, 1996 and for the year then ended and have issued our report thereon dated
April 30, 1997.
We conducted our audit in accordance with generally accepted auditing standards; 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 Statute 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 with laws, regulations, contracts, and grants applicable to the City is the responsibility of the
management of the City. As part of obtaining reasonable assurance about whether the general purpose
financial statements are free of material misstatement, we performed tests of the City's compliance with
certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the
general purpose financial statements was not to provide an opinion on overall compliance with such
provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein
under Government Auditing Standards.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of
compliance to be tested for the City: contracting and bidding, deposits and investments, conflicts of interest,
public indebtedness, and claims and disbursements. Our tests included all of the listed categories. The
results of our tests disclosed no instances of noncompliance that are required to be reported.
j This report is intended for the information of the Mayor and City Council members, management, others
within the City of Brooklyn Center, Minnesota, and applicable federal and Hennepin County agencies.
However, this report is a matter of public record and its distribution is not limited.
&Zzw.; " /- T ezl°
April 30, 1997
DeloitteTouche
Tohmatsu 4
International
1
Deloifte &
Touche
400 One Financial Plaza Telephone: (612) 397 -4000
�\ 120 South Sixth Street Facsimile: (612) 397 -4450
Minneapolis, Minnesota 55402 -1844
1
INDEPENDENT AUDITORS' REPORT ON THE INTERNAL
CONTROL STRUCTURE BASED ON THE AUDIT OF
THE FINANCIAL STATEMENTS
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, 1996 and have issued our report thereon dated April 30,
1997.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement.
The management of the City is responsible for establishing and maintaining the internal control structure.
In fulfilling this responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and procedures. The objectives of
an internal control structure are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed
in accordance with management's authorization and recorded properly to permit the preparation of
general purpose financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless
occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject
to the risk that procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of policies and procedures may deteriorate.
' In planning and performing our audit of the general purpose financial statements of the City for the year
ended December 31, 1996, we obtained an understanding of the internal control structure. With respect to
the internal control structure, we obtained an understanding of the design of relevant policies and
procedures and whether they have been placed in operation, and we assessed control risk in order to
determine our auditing procedures for the purpose of expressing our opinion on the general purpose
financial statements, and not to provide an opinion on the internal control structure. Accordingly, we do
not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal
control structure 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 specific internal control structure elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in relation in the general purpose
Deloittebuche
Tohmatsu 5
International
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 structure and its operation that we consider to be material weaknesses as defined above.
This report is intended for the information of the Mayor and City Council members, management, others
within the City of Brooklyn Center, Minnesota, and applicable federal and Hennepin County agencies.
However, this report is a matter of public record and its distribution is not limited.
April 30, 1997
6
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED DECEMBER 31, 1996
CURRENT -YEAR FINDINGS
Federal Financial Assistance Program Findings:
None.
State of Minnesota Legal Compliance Findings:
None.
PRIOR -YEAR FINDINGS
Federal Financial Assistance Program Findings:
None.
State of Minnesota Legal Compliance Findings:
None.
7
■ COMPREHENSIVE
ANNUAL
FINANCIAL REPORT
of the
CITY OF BROOKLYN CENTER, MINNESOTA
For The Year Ended December 31, 1996
MICHAEL J. MCCAULEY, CITY MANAGER
Prepared by
THE DEPARTMENT OF FINANCE
Charles Hansen, Director
' Tim Johnson, Asst. Director
(Member of Government Finance Officers
Association of the United States and Canada)
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1996
TABLE OF CONTENTS
Exhibit Page
Number Number
Title Page
I. INTRODUCTORY SECTION
Table of Contents i - v
City Officials 1
Organization Chart 2
City Manager's Letter 3
Finance Director's Letter 4 - 12
Certificate of Achievement 13
II. FINANCIAL SECTION
Independent Auditors' Report 14
A. General Purpose Financial Statements
(Combined Statements - Overview):
Combined Balance Sheet - All Fund Types and
Account Groups 1 16 & 17
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances - All Governmental
Fund Types 2 18
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget And Actual -
General, Special Revenue and Annually Budgeted
Capital Projects Funds 3 19
Combined Statement of Revenues, Expenses and
Changes in Retained Earnings - Proprietary
Fund Types 4 20
Combined Statement of Cash Flows
Proprietary Fund Types 5 21
Notes to Financial Statements 22 - 50
i
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1996
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 52
Comparative Statement of Revenues,
Expenditures and Changes in Fund
Balance - Budget and Actual A -2 53
Schedule of Revenues & Other Financing
Sources - Budget and Actual S -1 54 - 55
Schedule of Expenditures - Budget and Actual S -2 56 - 60
Special Revenue Funds:
Combining Balance Sheet B -1 62
Combining Statement of Revenues,
Expenditures and Changes in Fund
Balances - Budget and Actual B -2 63
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Housing and Redevelopment Authority Fund B -3 64
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Economic Development Authority Fund B -4 65
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
E. Brown Tax Increment Financing Dist. Fund B -5 66
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Tax Increment District No. 3 B -6 67
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Diseased Tree Removal Fund B -7 68
Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual
Community Development Block Grant Fund B -8 69
Debt Service Funds:
Combining Balance Sheet C -1 71
ii
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1996
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances C -2 72
Capital Projects Funds:
Combining Balance Sheet D -1 74
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances D -2 75
Project- Length Schedule of Construction
Projects - Capital Improvements Fund S -3 76
Project- Length Schedule of Construction Projects
- Municipal State Aid Construction Fund S -4 77
Project- Length Schedule of Construction Projects
Special Assessment Construction Fund S -5 78
Enterprise Funds:
Combining Balance Sheet E -1 80 - 81
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings E -2 82 - 83
Combining Statement of Cash Flows E -3 84 - 85
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Municipal
Liquor Fund E -4 86
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Golf
Course Fund E -5 87
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Earle
Brown Heritage Center Fund E -6 88
Comparative Statement of Revenues, Expenses
p R v Hues, E
xp
and Changes in Retained Earnings - Recycling
and Refuse Fund E -7 89
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Water
Utility Fund E -8 90
iii
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1996
TABLE OF CONTENTS
Statement/
Schedule Page
Number Number
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Sanitary
Sewer Fund E -9 91
Comparative Statement of Revenues, Expenses
and Changes in Retained Earnings - Storm
Drainage Fund E -10 92
Internal Service Funds:
Combining Balance Sheet F -1 94
Combining Statement of Revenues, Expenses
and Changes in Retained Earnings F -2 95
Combining Statement of Cash Flows F -3 96
Agency Funds:
Statement of Changes in Assets and Liabilities
Employee Deferred Compensation Fund G 98
General Fixed Asset Account Group:
Schedule of Changes in General Fixed Assets
by Source S -6 100
Schedule of General Fixed Assets
By Function and Activity S -7 101
Schedule of Changes in General Fixed Assets
By Function and Activity S -8 102
General Long -Term Debt Account Group:
Comparative Statement of General
Long -Term Debt H 104
Summary of Debt Service Requirements
to Maturity I 105
III. STATISTICAL SECTION Table Page
Number Number
General Governmental Expenditures by Function 1 107
General Governmental Revenues and Other
Financing Sources by Source 2 108
Tax Levies and Tax Collections 3 109
iv
City of Brooklyn Center
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended December 31, 1996
TABLE OF CONTENTS
Table Page
Number Number
Assessed Value and Estimated Market Value of All
Taxable Property 4 110
Direct and Overlapping Tax Rate
pp g s and Tax Levies 5 111
Special Assessment Billings and Collections 6 112
Ratio of Net Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita 7 113
Computation of Legal Debt Margin 8 114
Computation of Direct and Overlapping Debt 9 115
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Fund
Expenditures 10 116
Schedule of Revenue Bond Coverage 11 117
Property Value, Construction and Bank Deposits 12 118
Principal Taxpayers 13 119
Schedule of Insurance Coverage 14 120 -121
Demographic Statistics 15 122
Miscellaneous Statistical Facts 16 123 -124
V
City of Brooklyn Center
CITY OFFICIALS
For the Year Ended December 31, 1996
ELECTED OFFICIALS
Term of Office Term Expires
Mayor Myrna Kragness Four Years 12/31/1998
Councilmember Kristen Mann Four Years 12/31/1996
Councilmember Charles Nichols Four Years 12/31/1996
Councilmember Kathleen Carmody Four Years 12/31/1998
Councilmember Debra Hilstrom Four Years 12/31/1998
Councilmember Elect Kay Lasman Four Years 12/31/2000
Councilmember Elect Robert Peppe Four Years 12/31/2000
APPOINTED OFFICIALS
City Manager Michael J. McCauley
City Clerk Sharon Knutson
City Treasurer Charles Hansen
City Attorney Kennedy & Graven
City Prosecutor Carson & Clelland
Department Heads:
Community Development Brad Hoffman
Financial Services Charles Hansen
Fire /Emergency Preparedness Ronald Boman
Police Scott Kline
Public Works Diane Spector
Assessing Stephen Baker
Asst. City Manager /H.R. Director Jane Chambers
City Engineer Scott Brink
Civil Defense Coordinator Ronald Boman
Fire Marshall Ronald Boman
Health Officer Duane Orn, M.D.
Liquor Stores Gerald Olson
Public Works Superintendent Dave Peterson
Recreation James Glasoe
-1-
■
City of Brooklyn Center Organization
ELECTORATE
City Council Advisory
Commissions
Administration
Purchasing
I Human Resources
City Attorney - - - - - City Manager Elections
N Licenses
I City Clerk
Communications
Mgmt. Info. Systems
PUBLIC SERVICES FIRE DEPARTMENT POLICE DEPARTMENT COMMUNITY
- Engineering
FINANCIAL SERVICES DEVELOPMENT
- Investigation - Accounting
Fire Prevention - Patrol
- Street Mntce -Fire Supression - Assessing
Emergency Pre aredness -Crime Prevention -Audit
Sanita Sewer p Inspections
ry - Community Programs - Utility Billing
- Central Garage Support Services flisk Management - EDA/HRA
-Gov't Sew er - Dispatch - Liquor Stores - Zoning
-Storm Sew -EBHC
-Water Dept - Planning
-Park Mntce
- Recreation Programs
- Community Center
Golf Course
City of Brooklyn Center
A great place to start. A great place to stay.
June 23, 1997
HONORABLE MAYOR.AND MEMBERS OF CITY COUNCIL
CITY OF BROOKLYN CENTER
I hereby transmit the Comprehensive Annual Financial Report of the
City of Brooklyn Center for the fiscal year ended December 31,
1996. Minnesota Statutes and City Charter, Section 7.12, require
that the financial statements of the City of Brooklyn Center be
audited b the State Auditor or a certified public accountant
Y P
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.
This report has been prepared following the guidelines recommended
by the Government Finance Officers Association of the United States
and Canada. The Government Finance Officers Association awards
Certificates of Achievement for Excellence in Financial Reporting
to those governments whose Comprehensive Annual Financial Reports
are judged to conform substantially with high standards of public
financial reporting, including generally accepted accounting
principles promulgated by the Governmental Accounting Standards
Board. Our financial reports for the past thirteen years have
received this award. It is my belief that the accompanying report
meets program standards, and it will be submitted to the Government
Finance Officers Association for review.
Respec fully - submitted,
G -
Michael J. Ca ley
City Manager
6301 Shingle Creek Pkwy, Brooklyn Center, MN 55430 -2199 • City 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
i
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 j
public safety (police and fire), streets, sanitation, social
services, culture- recreation, public improvements, planning and
zoning, and general administrative services. The City also
operates three off -sale liquor stores, a public water and sewer
utility, a golf course, and a convention center known as the Earle
Brown Heritage Center.
ECONOMIC CONDITION AND OUTLOOK
}
The City of Brooklyn Center is a northern suburb of the
Minneapolis /St. Paul metropolitan area, lying adjacent to the City
of Minneapolis. The City is wholly within Hennepin County and
encompasses an area of approximately 8.5 square miles. The
Mississippi River forms the City's eastern boundary.
The City experienced its most rapid growth from 1950 to 1970 when
the City's population grew from 4,300 to its peak of 35,173. The
1990 Census count for the City is 28,887, a 7.50 decline from the
1980 Census. The 1995 population, as estimated by the Metropolitan
Council, is 28,463. 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 1995 to 11,186 housing units. This was due to
the removal of some units by the City in accordance with a j
preplanned redevelopment effort.
Major transportation routes in and through the City, including
Interstate 94 and 694, and State Highways 100 and 252, have i
provided a continued impetus for development of a strong commercial
tax base in the City.
Commercial and industrial property comprises 55.1% of the City's I
taxable net tax capacity. There are five major shopping centers
located in the City in addition to a large number of retail
establishments including K -Mart, Kohl's Department Store, Toys R
Us, Jerry's New Market. The largest commercial property in the
City is Brookdale Mall, a 1,000,000 square -foot regional shopping
center anchored by Daytons, Sears, Penny's and Mervyn's of
California. Brookdale Square, a 125,000 square -foot strip center
plus an 8- screen theater is occupied. by Circuit City, Drug Emporium
and Office Depot. The remaining three major retail shopping
centers include Shingle Creek Center, a 157,000 square -foot three
building center anchored by Target; Westbrook Mall, an 88,000
square -foot center anchored by Dayton's Home Store; and Brookview
Plaza, a 70,000 square -foot center anchored by Best Buy. 1
-5-
i'
New construction in 1996 included an 84 -room Country Suites Hotel
with two attached restaurants. One restaurant is TGI Fridays and
the other will be determined in the future. A free standing
Denny's restaurant seating 146 people was also constructed in 1996.
The building activity in 1995 included the construction of a 60-
unit Comfort Inn Hotel (28,000 square - feet) and a Fuddruckers
Restaurant (10,000 square- feet). In Brookdale Mall, Mervyn's
renovated the former Carson Pirie Scott store.
MAJOR EVENTS OF 1996
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 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.
During 1996, the City continued its redevelopment effort in the
Willow Lane neighborhood with the purchase of the Brookdale Motel.
The demolition of the motel has provided additional land for future
commercial development. Rainbow Foods is in the process of
redeveloping the Builders Square site into a new grocery store
(75,000 square -feet) and other leasable space. Tenants for the new
site include Walgreens,Pharmacy (10,000 square - feet).
As part of the planned replacement of the City's infrastructure,
the City is in process of completing several major street and
utility improvements for the City. These improvements were funded
by general obligation bonds sold during 1996 and include the
capital projects funds and utility enterprise funds. The City
purchased new playground equipment at six neighborhood parks.
Funding for the new playground equipment was from the Capital
Improvements Fund.
The Police and Community Development Departments selected
neighborhoods for concentrated clean -up and neighborhood
improvements. Staff surveyed each residential property in the
selected neighborhood and left an advisory notice of code
violations observed. Later in the year, staff conducted another
inspection and issued clean -up orders to property owners who still
violate the City's codes. These visible results appear to be
accomplishing the City's objectives for strong residential
neighborhoods.
In a effort to revitalize the southeast corner of Brooklyn Center,
the City created the 53rd Avenue Development and Linkage Project.
The Project would start to create a new image and focus for the
southeast neighborhood by creating new homes, green space, and a
link to the Mississippi River. The project as conceptualized would
- 6 -
require the removal of 28 housing units along 53rd to create
opportunities for a green way and a new low- traffic roadway. New
owner occupied housing would be developed on the land not needed
for t
he reen way. The project is accounted
Y• P ] for the Economic
Development Authority Fund.
P Y
FINANCIAL INFORMATION
The 1997 Minnesota legislature passed levy limits on cities. The
commissioner of revenue will determine a levy limit base for each
city consisting of the 1997 property tax levy and state aids and
adjust it using 1997 inflation and population increases. The new
base, minus 1998 state aids, will be the limit for 1998 property
taxes. Cities will be able to establish special levies in addition
to the levy limit base for a limited number of specified purposes,
including bonded indebtedness.
Management of the City is responsible for establishing and
maintaining an internal control structure 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. The internal control
structure is designed to provide reasonable, but not absolute,
assurance that these objectives are met. The concept of reasonable
assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments by management.
In addition, the City maintains budgetary controls. The objective
of these budgetary controls is to ensure compliance with legal
provisions embodied in the annual budget appropriation approved by
the City's governing body. Activities of the general fund and
special revenue funds are included in the annual appropriated
budget. Project - length financial plans are adopted for the capital
projects funds. The level of budgetary control (that is, the level
at which expenditures cannot legally exceed the appropriated
amount) is established by department for the General Fund and at
the aggregate fund level for all other governmental funds that
adopt annual budgets. Appropriations lapse at year -end and
generally are not reappropriated in the following year's budget.
As demonstrated by the statements and schedules included in the
financial section of this report, the City continues to meet its
P Y
responsibility for sound financial management.
GENERAL FUND
The following schedule presents a summary of general fund budgeted
revenues for 1997, and actual revenues for the fiscal year ended
December 31, 1996, compared to 1995.
-7-
General Fund Revenues & Other Financing Sources 1996
Increase
1997 1996 1995 - Decrease
BUDGET ACTUAL ACTUAL From 1995
- - - - -- ---- - - - - -- ---- - - - - -- --- - - - - --
Taxes $6,676,878 $6,120,877 $5,946,363 $ 174,514
License & permits 300,160 402,000 318,202 83,798
Intergovernmental
revenue 3,671,405 3,618,075 3,543,009 75,066
Charges for
services 903,544 839,583 822,530 17,053
Court fines 192,000 186,761 178,263 8,498
Misc. revenues 282,000 328,750 271,509 57,241
Other financing
sources 100,000 100,000 100,000 -
----- - - - - -- ----- - - - - -- ----------- ---------
TOTAL $12,125,987 $11,596,046 $11,179,876 $ 416,170
Revenues and other financing sources for the General Fund totaled
$11,596,046 in 1996, an increase of $416,170 from the previous
year. From the table above, it is apparent that the major sources
of revenue available for funding of general governmental functions
are taxes and intergovernmental revenue, which when combined,
provide 84% of the total revenues. The principal sources of
intergovernmental aid to the City are homestead and agricultural
credit aid of $1,272,972 and local government aid of $1,865,664.
The following schedule presents a summary of general fund budgeted
expenditures for 1997, and actual expenditures for the fiscal year
ended December 31, 1996, compared to 1995.
General Fund Expenditures 1996
Increase
1997 1996 1995 - Decrease
BUDGET ACTUAL ACTUAL From 1995
--- - - - - -- --- - - - - -- --- - - - - -- --- - - - - --
General Govt $2,053,620 $1,736,334 $1,831,045 $ - 94,711
Public Safety 5,224,169 5,022,324 4,598,618 423,706
Public Works 1,969,690 1,270,438 1,363,244 - 92,806
Community Sery 80,000 78,442 41,146 37,296
Parks & Recr 2,296,742 2,282,054 2,226,121 55,933
Economic
Development 206,570 201,600 209,576 -7,976
Non - departmental 369,700 317,148 289,747 27,401
Admin Sery Reimb - 699,141 - - -
Other Financing
Uses 624,637 - - -
- - - - -- ----- - - - - -• ----- - - - - -- -- - - - - --
TOTAL $12,125,987 $10,908,340 $10,559,497 $348,843
- 8 -
Expenditures for the General Fund totaled $10,908,340 in 1996, an
overall increase of 3.3% when compared to 1995. The increase is
reflective of the 3.0% wage increase granted to all employees
except for Supervisor union personnel who received 3.2% in 1996.
General government expenditures decreased primarily due to lower
recruiting and personnel costs. Increased expenditures in the
public safety area were due primarily to the costs associated with
the planned replacement of a fire truck. Public works expenditures
decreased due to lower personnel costs being charged to the General
Fund. Public work's personnel costs associated with capital
improvement projects were charged to the appropriate capital
project fund. The 1997 budget reclassifies the administrative
reimbursement into one budget category. In the past, the
g
administrative reimbursement was allocated to the respective
departments within the budget. The 1997 budget also reclassifies
debt service property tax revenues to the General Fund. The
General Fund budget plans for transfers to the debt service and
capital project funds during 1997.
GENERAL FUND BALANCE
The fund balance increased by $687,706 or 11.8% in 1996. The ending
fund balance of $6,522,498 is the equivalent of six months of
expenditures for the 1997 budget. Property taxes and inter-
governmental revenue represent 84% of the budgeted general fund
revenue for 1996. 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.
ENTERPRISE OPERATIONS
The City's enterprise operations are comprised of seven separate
and distinctive activities: Liquor stores, Golf Course, Earle
Brown Heritage Center, Recycling, Water utility, Sanitary Sewer
utility, and Storm Drainage utility.
The liquor operation is composed of three retail stores. Two
stores are owned and one is leased.
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 Earle Brown Heritage Center is a pioneer farmstead which has
been historically 1 reserved and restored as a modern multipurpose
P P P
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. Earle's, a unique special occasion restaurant, is also
- 9 -
located at the Inn on the Farm. Several of the barns have been
restored as unique office settings which have found a niche in the
market. 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.
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 recycling program are being met.
The Water and Sanitary Sewer utilities are largely developed and
already reach all parts of the City. Rates for both water and
sanitary sewer are reviewed annually and 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.
During the 1980s, the State of Minnesota passed legislation that
requires cities to take greater responsibility for controlling
storm water runoff. In response to this, the City created a Storm
Drainage Utility Fund. Its fee structure is based upon the amount
of water discharged into the storm sewer system.
INTERNAL SERVICE FUNDS
The Central Garage Fund was established to own and maintain all
operating equipment of the City. At present, the fund maintains
some 155 pieces of rolling and non - rolling stock equipment with a
net book value of $2,431,018. 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 City employees who retire before
age 65. The fund had cash and investments of $1,125,624 at the
1996 year -end.
AGENCY FUND
The Deferred Compensation Agency Fund accounts for the I.C.M.A.
Retirement Corporation plan with a market share value totaling
$3,593,460 for City lan members at year end.
Y P er Y
10 -
DEBT ADMINISTRATION
At December 31, 1996, the City had nine debt issues outstanding.
These issues include $2,295,000 of general obligation state aid
street bonds, $3,030,000 of special assessment debt with government
commitment, $1,720,000 of general obligation revenue bonds and
$13,205,000 of general obligation tax increment bonds. The City
maintained its A -1 rating from Moody's Investors Service.
The City issued $1,440,000 of special assessment bonds in 1996 to
provide construction proceeds for various improvement projects in
the City. During 1996, the City used investments held in escrow
from the 1992 Tax Increment Refunding Bond issue to pay off the
remaining principal of the Tax Increment Bonds of 1985. The
refunding resulted in cumulative savings to the City of $430,748
with a net present value savings of $295,046.
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 475. The yield on investments ranged from a high of 7.8
percent to a low of 4.7 percent. Interest earned during 1996
amounted to $2,161,057 compared to $2,071,364 during 1995. 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.
All deposits were either insured by federal depository insurance or
collateralized. Investment securities are held in a custody
arrangement with a bank trust department. All investments are
listed in the lowest credit risk category, Category 1. Cash
balances for all funds of the City are maintained on a combined
basis and invested, to the extent possible, in short -term
securities. Earnings from securities are allocated to the various
funds in proportion to their relative cash book balances. 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.
The City has not purchased any collateralized mortgage obligations,
derivatives, or interest only strip investments. Our practice is
to hold investments to maturity. The only reason to sell prior to
maturity is an unforeseen cash flow need. In the past four years,
there has been only one occasion where an investment was sold prior
to maturity. Of the City's portfolio as of December 31, 1996, 25%
matures within 1 year, another 37% in the second year, 9% in the
third year, 15% in the fourth year, and the last 14% in the fifth
through the tenth years.
- 11 -
RISK MANAGEMENT
The City insures all significant risk. A schedule of such
insurance is included in the Statistical Section.
INDEPENDENT AUDIT
The City Charter and State Statutes require the Council to provide
for an audit of the financial transactions of the City. Deloitte
& Touche LLP has been retained for that purpose and their
unqualified opinion has been included in this report.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States
and Canada (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City of Brooklyn Center
for its comprehensive annual financial report for the fiscal year
ended December 31, 1995.
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 p , e 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.
ACKNOWLEDGMENTS
We want to express our appreciation to the Finance Department staff
for the assistance provided during the audit. We also wish to
express our appreciation to the City Manager and 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.
Respectfully submitted,
Charles Hansen
Director of Finance
Zt hnson
Assistant Director of Finance
- 12 -
C ertificate o
Achi evement
f or E
in Fi nancial
Rep
Presented to
City of Broo Center,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 1995
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
<c� • OF THE
UNITED STATES 9 �
n+i AND . N
' � N
.11 Preside
CI(ICASA Z 4po Executive Director
Deloifte &
Touche LL
/O400 One Financial Plaza Telephone: (612) 397 -4000
120 South Sixth Street Facsimile: (612) 397 -4450
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 general purpose financial statements of the City of Brooklyn Center,
Minnesota (the City) as of December 31, 1996 and for the year then ended, listed in Section IIA of the
foregoing Table of Contents. These general purpose financial statements are the responsibility of the
City's management. Our responsibility is to express an opinion on these general purpose financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general purpose financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, such general purpose financial statements present fairly, in all material respects, the
financial position of the City of Brooklyn Center, Minnesota at December 31, 1996 and the results of its
operations and cash flows of its proprietary fund types for the year then ended in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the general purpose financial
statements taken as a whole. The accompanying combining and individual fund and account group
financial statements and schedules listed in the foregoing Table of Contents, which are also the '
responsibility of the City's management, are presented for purposes of additional analysis and are not a
required part of the general purpose financial statements of the City. Such financial statements and
schedules have been subjected to the auditing procedures applied in our audit of the general purpose
financial statements and, in our opinion, are 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 a report dated April 30, 1997 on
our consideration of the City of Brooklyn Center's internal control structure and a report dated April 30,
1997 on its compliance with laws and regulations.
April 30, 1997
Deloittebuche
Tohmatsu
International
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 that data needed to control and analyze
current operations to determine compliance with legal and budgetary
limitations and to assist in the financial planning process.
15 -
City of Brooklyn Center EXHIBIT
All Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued next page)
December 31, 1996
Fiduciary Totals
Governmental Fund Types Proprietary Fund Types Fund Types Account Groups (Memorandum Only)
General General
Special Debt Capital Internal Fixed Long -Term December 31,
General Revenue Service Projects Enterprise Service Agency Assets Debt 1996 1995
ASSETS AND OTHER DEBITS
Cash and cash equivalents (Note 2) $3,589,889 $2,518,656 $1,225,165 $3,974,917 $3,407,830 $2,418,803 $17,135,260 $8,503,266
Investments (Note 2) 5,484,065 3,767,031 1,268,333 5,945,090 4,763,372 3,617,686 24,845,577 34,713,369
Receivables:
Accounts 163,658 30,867 1,312,892 5,603 1,513,020 1,253,006
Delinquent taxes (Note 1J) 197,245 9,532 2,085 208,862 288,717
Special assessments:
Deferred 1,230 774,989 928,756 325,550 2,030,525 1,521,792
r Delinquent 5,957 6,556 78,412 4,376 95,301 69,874
r Due from other funds (Note 8) 873,932 776,058 203,619 812,091 2,665,700 2,991,215
ON Due from other governments 37,818 212,261 132,977 234,367 617,423 2,331,440
t Inventories and supplies (Note 1G) 379,059 13,160 392,219 366,634
Prepaid expenses 159,568 159,568 143,211
Advances to other funds (Note 8) 105,074 1,854,339 1,959,413 1,995,815
Restricted Investments (Note 1L) 4,180,920
Investments for deferred compensation
plan - at market (Note 11) $3,593,460 3,593,460 3,174,761
Property, plant and equipment (Note 3) 43,365,090 4,696,440 $14,538,095 62,599,625 57,356,548
Less accumulated depreciation (9,487,340) (2,265,422) (11,752,762) (11,067,051)
Amount available in Debt Service Funds $2,260,484 2,260,484 6,451,107
Amount to be provided for General Long -
Term Debt 16,269,516 16,269,516 15,763,893
Total Assets and Other Debits $10,458,868 $7,283,538 $3,480,747 $ 13,757,449 $44,464,764 $8,486,270 $3,593,460 $14,538,095 $18,530,000 $124,593,191 $130,038,517
(See notes to financial statements)
City of Brooklyn Center Exhibit 1
All Fund Types and Account Groups
COMBINED BALANCE SHEET (Continued from prior page)
December 31, 1996
Fiduciary Totals
Governmental Fund Types Proprietary Fund Types Fund Types Account Groups Memorandum Only
General General
Special Debt Capital Internal Fixed Long -Term December 31,
LIABILITIES, EQUITY AND OTHER CREDITS General Revenue Service Projects Enterprise Service Agency Assets Debt 1996 1995
L iabilities
Accounts payable $387,303 $11,865 $389 $62,851 $305,382 $96,564 $864,354 $661,743
Contracts payable 724,560 140,062 864,622 1,299,696
Securities lending agreement 1,841,455 1,295,676 436,244 2,044,822 1,638,369 1,244,309 8,50,875 8,424,500
Due to other governments 17,785
Due to other funds (Note 8) 350,886 1,552,809 762,005 2,665,700 2,991,215
Accrued salaries and wages 195,508 3,979 1,987 55,630 6,070 263,174 180,392
Accrued vacation & sick pay (Note 1H) 594,728 21,420 59,659 26,535 702,342 661,325
Accrued health insurance 1,047,920 1,047,920 987,081
Accrued interest payable 35,835 35,835 37,760
Advances from other funds (Note 8) 698,143 1,261,270 1,959,413 1,995,815
Deferred revenue 917,376 9,532 783,630 1,140,145 2,850,683 3,709,963
State aid street bonds payable (Note 6) $2,295,000 2,295,000 2,455,000
Special assessment debt with government
commitment (Note 6) 3,030,000 3,030,000 1,705,000
Tax increment bonds payable (Note 6) 13,205,000 13,205,000 18,055,000
Revenue bonds payable (Note 6) 1,720,000 1,720,000 1,830,000
Deferred compensation funds held for
t
participants (Note 11) $3,593,460 3,593,460 3,174,761
r-r
V Total Liabilities 3,936,370 2,391,501 1,220,263 5,527,174 5,978,212 2,421,398 3,593,460 18,530,000 43,598,378 48,187,036
1
Eguity and Other Credits
Contributed capital (Note 4) 21,042,114 3,645,126 24,687,240 24,856,207
Investment in general fixed assets $14,538,095 14,538,095 14,085,155
Retained earnings:
Reserved:
Debt Service 237,595 237,595 198,315
Special assessments 329,926 329,926 134,570
Unreserved 16,876,917 2,419,746 19,296,663 17,110,855
Fund Balances (Deficits):
Reserved:
Debt service 2,260,484 2,260,484 6,451,107
Bond proceeds 2,896,472 2,896,472 3,477,619
Housing projects 20,918 20,918
Advances to other funds 105,074 1,854,339 1,959,413 1,995,815
Unreserved:
Designated:
Working capital 5,620,352 5,620,352 5,276,757
Unexpended appropriations 44,718 44,718 109,750
Undesignated 752,354 1,974,647 6,375,936 9,102,937 8,155,331
Total Equity and Other Credits 6,522,498 4,892,037 2,260,484 8,230,275 38,486,552 6,064,872 14,538,095 80,994,813 81,851,481
Total Liabilities, Equity& Other Credits $10,458,868 $7,283,538 $3,480,747 $ 13,757,449 $44,464,764 $8,486,270 $3,593,460 $14,538,095 $18,530,000 $124,593,191 $130,038,517
(See notes to financial statements)
i
City of Brooklyn Center EXHIBIT k
All Governmental Fund Types
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICITS)
For the Year Ended December 31, 1996
Totals
Special Debt Capital Memorandum Only
Revenues General Revenue Service Projects 1996 1995
Taxes and special assessments $6,120,877 $2,619,170 $366,948 $607,887 $9,714,882 $8,718,252
Licenses and permits 402,000 402,000 318,202
Intergovernmental 3,618,075 73,043 308,273 1,970,028 5,969,419 5,150,047
Charges for services 839,583 3,742 $43,325 828,794
Court fines 186,761 186,761 178,263
Investment earnings 312,831 344,234 181,250 545,741 1,384,056 1,215,231
Miscellaneous 15,919 30,681 46,600 32,025
Total Revenues 11,496,046 3,070,870 856,471 3,123,656 18,547,043 16,440,814
Expenditures
Current:
General government 1,736,334 1,736,334 1,831,045
Public safety 5,022,324 5,022,324 4,598,618
Public works 1,270,438 1,270,438 1,363,244
Community services 78,442 78,442 41,146
Parks and recreation 2,282,054 6,813 2,288,867 2,240,507
Economic development 201,600 498,922 700,522 776,532
Non - departmental 317,148 317,148 289,747
Capital outlay 608,875 5,205,248 5,814,123 3,493,127
Debt service:
Principal retirement 5,125,000 5,125,000 825,000
Interest and fiscal charges 34,914 1,109,860 140,642 1,285,416 1,248,825
Total Expenditures 10,908,340 1,149,524 6,234,860 5,345,890 23,638,614 16,707,791
Excess or Deficiency( -) of Revenues Over Expenditures 587,706 1,921,346 (5,378,389) (2,222,234) (5,091,571) (266,97
Other Financing Sources or Uses( -)
Proceeds from sale of bonds 7,766 1,422,720 1,430,486 5,284,753
Operating transfers in 100,000 193,524 5,360,000 5,653,524 1,793,736
Operating transfers out (1,373,524) (4,180,000) (5,553,524) (1,693,736)
Total Other Financing Sources or Uses( -) 100,000 (1,180,000) 1,187,766 1,422,720 1,530,486 5,384,753
Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses 687,706 741,346 (4,190,623) (799,514) (3,561,086) 5,117,776
Fund Balances (Deficits) January 1 5,834,792 4,214,374 6,451,107 8,966,106 25,466,379 20,348,603
Equity Transfers Out (63,683) 63,683
Fund Balances (Deficits) December 31 $6,522,498 $4,892,037 $2,260,484 $8,230,275 $21,905,294 $25,466,379
(See notes to financial statements)
- 18 -
EXHIBIT 3
City of Brooklyn Center
General and Special Revenue Funds
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
General Fund Special Revenue Funds
Actual Over Actual Over
Under( -) Under( -)
Budget Actual Budget Budget Actual Budget
Revenues
Taxes and special assessments $6,355,958 $6,120,877 ($235,081) $1,643,539 $2,619,170 $975,631
Licenses and permits 348,850 402,000 53,150
Intergovernmental 3,540,018 3,618,075 78,057 287,428 73,043 (214,385)
Charges for services 886,068 839,583 (46,485) 12,000 3,742 (8,258)
Court fines 144,000 186,761 42,761
Investment earnings 250,000 312,831 62,831 106,000 344,234 238,234
Miscellaneous 13,833 15,919 2,086 30,681 30,681
Total Revenues 11,538,727 11,496,046 (42,681) 2,048,967 3,070,870 1,021,903
Expenditures
General government 1,873,246 1,736,334 (136,912)
Public safety 5,162,530 5,022,324 (140,206)
Public works 1,545,021 1,270,438 (274,583)
Community services 79,047 78,442 (605)
Parks and recreation 2,502,915 2,282,054 (220,861) 30,000 6,813 (23,187)
Economic development 228,000 201,600 (26,400) 1,827,442 1,107,797 (719,645)
Non- departmental 337,371 317,148 (20,223)
Interest and fiscal charges 90,000 34,914 (55,086)
Total Expenditures 11,728,130 10,908,340 (819,790) 1,947,442 1,149,524 (797,918)
Excess or Deficiency( -) of Revenues
Over Expenditures (189,403) 587,706 777,109 101,525 1,921,346 1,819,821
Other Financing Sources or Uses( -)
Operating transfers in 100,000 100,000 407,064 193,524 (213,540)
Operating transfers out (1,587,064) (1,373,524) 213,540
Total Other Financing Sources or Uses( -) 100,000 100,000 0 (1,180,000) (1,180,000) 0
Excess or Deficiency( -) of Revenues and Other
Sources Over Expenditures and Other Uses (89,403) 687,706 777,109 (1,078,475) 741,346 1,819,821
Fund Balances January 1 5,834,792 5,834,792 4,214,374 4,214,374
Equity Transfer Out (63,683) (63,683)
Fund Balances December 31 $5,745,389 $6,522,498 $777,109 $3,135,899 $4,892,037 $1,756,138
(See notes to financial statements)
- 19 -
City of Brooklyn Center EXHIBIT 4
Proprietary Fund Types
COMBINED STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN RETAINED EARNINGS
For the Year Ended December 31, 1996
Internal Totals
Enterprise Service (Memorandum Only)
Operating Revenues Funds Funds 1996 1995
Sales and user fees $10,204,568 $1,416,469 $11,621,037 $10,901,501
Cost of sales 2,565,231 2,565,231 2,421,192
Net Operating Revenues 7,639,337 1,416,469 9,055,806 8,480,309
Operating Expenses
Personal services 2,387,977 309,825 2,697,802 3,413,925
Supplies 288,153 239,093 527,246 489,833
Other services 2,709,862 64,868 2,774,730 2,678,408
Insurance 67,989 34,691 102,680 106,430
Utilities 331,150 331,150 344,069
Rent 92,774 92,774 86,718
Depreciation 771,259 388,345 1,159,604 1,097,807
Total Operating Expenses 6,649,164 1,036,822 7,685,986 8,217,190
Operating Income (Loss) 990,173 379,647 1,369,820 263,119
Nonoperating Revenues or Expenses ( -)
Investment earnings 503,586 273,415 777,001 856,133
Special assessments (for service
hookups and delinquencies) (6,248) (6,248) 14,194
Other revenue 14,886 14,886 7,584
Gain (Loss) on disposal of fixed assets (772) 33,047 32,275 9,680
Interest and fiscal agent fees (190,342) (190,342) (192,851)
Total Net Nonoperating 321,110 306,462 627,572 694,740
Income (Loss) Before Operating Transfers 1,311,283 686,109 1,997,392 957,859
Operating Transfers In
Operating Transfers Out (100,000) (100,000) (100,000)
Net Income (Loss) 1,211,283 686,109 1,897,392 857,859
Depreciation on contributed assets that
reduces contributed capital 309,772 213,280 523,052 592,771
Retained Earnings January 1 15,923,383 1,520,357 17,443,740 15,993,110
Retained Earnings December 31 $17,444,438 $2,419,746 $19,864,184 $17,443,740
(See notes to financial statements)
- 20 -
City of Brooklyn Center EXHIBIT 5
Proprietary Fund Types
COMBINED STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1996
Internal Totals
Enterprise Service (Memorandum Only)
Cash flows from operating activities: Funds Funds 1996 1995
Operating income (loss) $990,173 $379,647 $1,369,820 $263,119
Adjustments to reconcile operating income (loss) to
net cash provided by operating actvities:
Depreciation 771,259 388,345 1,159,604 1,097,807
Changes in assets and liabilities:
Receivables 35,113 7,966 43,079 526,809
Inventories (22,470) (3,115) (25,585) (20,185)
Prepaid expenses (16,357) (16,357) (54)
Payables (784,648) (6,798) (791,446) 879,366
Securities lending agreement (693,345) 109,824 (583,521) 3,194,235
Accrued expenses 25,067 5,043 30,110 12,400
Accrued interest payable (1,925) (1,925)
Accrued health insurance liability 60,839 60,839 781,205
Other nonoperating income 8,638 8,638 21,778
Net cash provided by operating activities 311,505 941,751 1,253,256 6,756,480
Cash flows from noncapital financing activities:
Proceeds from borrowings on advance from other funds 11,500
Proceeds from borrowings on due to other funds 177,005 177,005 206,550
Principal payments on advance from other funds (36,402) (36,402) (22,813)
Principal payments on due from other funds (10,755) (10,755)
Interest paid on advance from other funds (67,673) (67,673) (70,273)
Interest paid on due to other funds (35,979) (35,979) (31,653)
Operating transfers out (100,000) (100,000) (100,000)
Net cash provided by (used for) noncapital financing activities (73,804) (73,804) (6,689)
Cash flows from capital and related financing activities:
Capital contributions 354,085 354,085 146,963
Acquisition and construction of capital assets (4,430,187) (885,116) (5,315,303) (3,395,851)
Proceeds from sale of fixed assets 83,548 83,548 24,685
Principal paid on revenue bonds (110,000) (110,000)
Interest paid on revenue bonds (86,690) (86,690) (90,925)
Net cash provided by (used for) capital and related
financing activities (4,272,792) (801,568) (5,074,360) (3,315,128)
Cash flows from investing activities:
Investments purchased (1,094,967) (831,612) (1,926,579) (10,037,425)
Investments sold or matured 5,655,776 1,750,564 7,406,340 8,024,259
Interest on investments 503,586 273,415 777,001 856,133
Net cash provided by (used for) investing activities 5,064,395 1,192,367 6,256,762 (1,157,033)
Net increase in cash and cash equivalents 1,029,304 1,332,550 2,361,854 2,277,630
Cash and cash equivalents at beginning of year 2,378,526 1,086,253 3,464,779 1,187,149
Cash and cash equivalents at end of year $3,407,830 $2,418,803 $5,826,633 $3,464,779
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Gain loss on disposal of fixed assets $772 $33,047 $32,275 $9,680
(See notes to financial statements)
- 21 -
City of Brooklyn Center
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
Note 1: Summary of Significant Accounting 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. Reporting 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 so
data from these units are combined with data of the primary
government.
Economic Development Authority (EDA) and Housing and
Redevelopment Authority (HRA) in and for the City of Brooklyn
Center:
The governing boards are the City Council. The Council
reviews and approves EDA and HRA tax levies, and the City
provides major community development financing for EDA and HRA
activities. Debts issued for EDA and HRA activities are City
general obligations. Although the EDA and HRA are legally
separate from the City, they are reported as if they were part
of the City because their sole purpose is carry out certain
redevelopment projects for the City. 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 governmental and other
entities which provide reduced costs, better service, and
additional benefits to the participants. These programs,
which the City participates in, are listed below and amounts
recorded within the current year financial statements are
disclosed.
-22-
Note 1: Summary of Significant Accounting Policies (continued)
A. Reporting Entity (continued)
Local Government Information Systems Association ( LOGIS):
This consortium of approximately 20 government entities
provides computerized data processing and support services to
its members. LOGIS is legally separate; the City does not
appoint a voting majority of the Board, and the Consortium is
fiscally independent of the City. The total amount recorded
within the 1996 financial statements of the City was $265,288
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 2700 Freeway
Boulevard, Suite 300, Brooklyn Center, Minnesota 55430.
LOGIS Insurance Group:
This group provides cooperative purchasing of health and life
insurance benefits for approximately 45 government entities.
The total amount recorded within the 1996 financial statements
of the City was $463,827 for services provided.
OTHER:
The Brooklyn Center Fire Department Relief Association
(Association):
The Association is organized as a nonprofit organization,
legally separate from the City, by its members to provide
pension and other benefits to such members in accordance with
Minnesota Statutes. Its board of directors is appointed by
the membership of the Association and not by the City Council
and the Association issues their 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 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.
- 23 -
Note 1: Summary of Significant Accounting Policies (continued)
B. Fund Accounting
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 seven generic fund types and three broad
fund categories as follows:
GOVERNMENTAL FUNDS:
General Fund - The General Fund is the general operating fund
of the City. It is used to account for all financial
resources except those required to be accounted for in another
fund.
Special Revenue Funds - Special Revenue Funds are used to
account for the proceeds of certain specific revenue sources
that are legally restricted to expenditures for specified
purposes.
Debt Service Funds - Debt Service Funds are used to account
for the accumulation of resources for, and the payment of,
general long -term debt principal, interest and related costs.
Capital Projects Funds - Capital Projects Funds are used to
account for financial resources to be used for the acquisition
or construction of major capital facilities, other than those
financed by proprietary funds.
PROPRIETARY FUNDS:
Enterprise Funds - Enterprise Funds are used to account for
operations that are financed and operated in a manner similar
to private business enterprises - where the intent is that the
costs (expenses, including depreciation) of providing goods or
services to the general public on a continuing basis be
financed or recovered primarily through user charges.
Internal Service Funds - Internal Service Funds are used to
account for the financing of goods or services provided by one
department to other departments of the City on a cost
reimbursement basis.
-24-
Note 1: Summary of Significant Accounting Policies (continued)
B. Fund Accounting (continued)
FIDUCIARY FUNDS:
Agency Funds - Agency Funds are used to account for assets
held by the City as an agent for others.
C. Fixed Assets and Long -Term Liabilities
The accounting and reporting of fixed assets and long -term
liabilities associated with a fund are determined by its
measurement focus. All governmental funds are accounted for
on a spending or "financial flow" measurement, which means
that only current assets and current liabilities are generally
included on their balance sheets. Their reported fund balance
is considered a measure of "available spendable resources."
Governmental fund operating statements present increases
(revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and
uses of "available spendable resources" during a period.
Fixed assets used in governmental fund type operations are
accounted for in the General Fixed Assets Account Group,
rather than in the governmental funds. Public domain general
fixed assets consisting of certain improvements other than
buildings, including roads, curbs and gutters, streets and
sidewalks, drainage systems, and lighting systems have been
excluded from general fixed assets, as such items are
immovable and of value only to the City. No depreciation has
been provided on general fixed assets.
All fixed assets are valued at historical cost or estimated
historical cost if historical cost is unavailable. Donated
fixed assets are valued at their estimated market value as of
the date donated.
The fixed assets of the proprietary funds are depreciated
using the straight -line method over the estimated useful lives
of the assets. The estimated useful lives are as follows:
Water & Sewer Mains & Lines 100 years
Buildings and Structures 20 -40 years
Water Wells and Storage Tanks 15 -50 years
Sewer Lift Stations 15 -40 years
Machinery and Equipment 5 -20 years
Furniture and Fixtures 5 -20 years
Public Utility assets financed by special assessments are
recorded as contributions.
- 25 -
Note 1: Summary of Significant Accounting Policies (continued)
C. Fixed Assets and Long -Term Liabilities (continued)
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.
All proprietary funds are accounted for on a flow of economic
resources measurement focus. With this measurement focus, all
assets and all liabilities associated with the operations of
these funds are included on the balance sheet. Fund equity
(e.g., net total assets) is segregated into contributed
capital and retained earnings components. Proprietary
fund -type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net total assets.
D. Basis of Accounting
Governmental funds and agency funds are accounted for using
the modified accrual basis of accounting. Their revenues are
recognized when they become measurable and available.
Available means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current
period.
Major revenues that are susceptible to accrual include taxes,
special assessments, intergovernmental revenues, charges for
services, and investment earnings. Major revenues that are
not susceptible to.accrual include licenses and permits, fees
and miscellaneous revenues; such revenues are recorded only as
received because they are not measurable until collected.
Interest on special assessments is recognized as revenue when
due, net of delinquencies.
Expenditures are generally recognized under the modified
accrual basis of accounting when the related fund liability is
incurred, except for principal and interest on general
long -term debt which is recognized when due.
All proprietary funds are accounted for using the accrual
basis of accounting. Their revenues are recognized when they
are earned
and expenses are p r 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. Budgets and Budgetary Accounting
The City follows these procedures establishing the budgetary
data reflected in the financial statements:
- 26 -
Note 1: Summary of Significant Accounting Policies (continued)
E. Budgets and Budgetary Accounting (continued)
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.
3. Public hearings are conducted to obtain taxpayer comments.
4. The budgets are legally enacted through passage of a
resolution by the City Council in the month of December.
5. The City Council must authorize any transfer of budgeted
amounts between departments within the general fund.
6. Supplemental appropriations during the year may only be
made by the City Council. These amounts must be financed by
funds from the contingency reserve set up in the general fund
or by additional revenues.
7. All budget amounts lapse at the end of the year to the
extent they have not been expended.
8. Formal budgetary integration is employed as a management
control device during the year for all governmental funds with
the exception of Debt Service Funds and the Capital Project
Funds which have adopted project - length budgets. 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 project - length Capital Projects Funds is
accomplished through the use of project controls.
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 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.
-
27 -
Note 1: Summary of Significant Accounting Policies (continued)
F. Investments
Cash balances from all funds are combined and invested to the
extent available in authorized investments (see Note 2).
Earnings from such investments are allocated to the respective
funds on the basis of applicable cash balance participation by
each fund. Cash and investments are stated at amortized cost
(which approximates market) except for Deferred Compensation
Fund assets which are recorded at market. All highly liquid
unrestricted investments with a maturity of three months or
less when purchased are considered to be cash equivalents.
G. Inventory
Inventories in the
funds are valued at cost using
proprietary g
the weighted average in the Municipal Liquor Fund and the
first-in/first-out FIFO method in the other ro rietar
P P Y
funds. The costs of governmental fund type supplies are
recorded as expenditures when purchased.
H. Accumulated Unpaid 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
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.
-28-
Note 1: Summary of Significant Accounting Policies (continued)
J. Property Tax (continued)
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.
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. At December 31, 1996, the City has
recorded $712,944 in deferred revenue for the General Fund for
estimated property tax abatements that are anticipated to be
repaid to the County in future years.
K. Conduit Debt Obligations
From time to time, the City has issued Industrial Revenue
Bonds to provide assistance to private sector entities for the
acquisition and construction of 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 repayment
of the bonds. Accordingly, the bonds are not reported as
liabilities in the accompanying financial statements.
L. Restricted Investments
Investments in the Refunding Tax Increment Bonds of 1992 Debt
Service Fund are classified as restricted in 1995 becuase the
securities have been placed in a irrevocable trust with an
escrow agent.
M. Reclassification
Certain 1995 accounts have been reclassified to conform to the
1996 presentation.
N. 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.
-29-
Note 2: Cash, Investments, and Securities Lending
A. Deposits
In accordance with Minnesota Statutes, the City maintains
deposits at those depository banks authorized by the City
Council. All such depositories are members of The Federal
Reserve System.
Minnesota Statutes require that all City deposits be protected
by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered
by insurance or bonds (140% in the case of mortgage notes
pledged).
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, 1996 the carrying amount of the City's demand
deposits was $213,962 and the bank balance was $516,537. Of
the bank balance, $154,472 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 Category
(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.
B. Securities Lending Transactions
State statutes and City policies permit the City to use its
investments to enter into securities lending ransactions -
g
loans of securities to broker - dealers and other entities for
collateral with a simultaneous agreement to return the
collateral for the same securities in the future. The City's
securities custodians are agents in lending the City's
securities for cash collateral of 102 P ercent of the market
- 30 -
Note 2: Cash, Investments, and Securities Lending (continued)
B. Securities Lending Transactions (continued)
value of the security. Securities on loan at year -end are
presented as unclassified in the following schedule of
custodial credit risk. At year -end, the City has no credit
risk exposure to the borrowers because the amounts the City
owes the borrowers exceed the amounts the borrowers owe the
City. Contracts with the lending agents require them to
indemnify the City if the borrowers fail to return the
securities (and if the collateral is inadequate to replace the
securities lent) or fail to pay the City for income
distributions by the securities' issuers while the securities
are on loan.
All securities can be terminated on demand by either the City
or the borrower, although the average term of the loan is four
months. In lending securities, cash collateral is invested in
securities authorized by Minnesota statutes, generally with
average maturities of approximately one month.
C. Investments
The City may also invest idle funds as authorized by
Minnesota Statutes, as follows:
(a) Direct obligations or obligations guaranteed by
the United States or its agencies.
(b) Shares of investment companies registered under
the Federal Investment Company Act of 1940 and
whose only investments are in securities described
in (a) above.
(c) General obligations of the State of Minnesota or
any of its municipalities.
(d) Bankers 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
P P g
banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000,
a primary reporting dealer.- in U.S. government
securities to the Federal Reserve Bank of New York,
or certain Minnesota securities broker - dealers.
- 31 -
Note 2: Cash, Investments, and Securities Lending (continued)
C. Investments (continued)
(g) Future contracts sold under authority of
Minnesota Statutes 471.56, subdivision 5.
The City's investments are categorized below to give an
indication of the level of custodial credit risk assumed at
year -end. Category 1 includes investments that are insured or
registered or for which the securities are held by the City or
its agent in the City's name. Category 2 includes uninsured
and unregistered investments for which the securities are held
by the counter party's trust department or agent in the City's
name. Category 3 includes uninsured and unregistered
investments for which the securities are held by the counter
party, or by its trust department or agent, but not in the
City's name. In accordance with GASB 3, investments in a
money market fund are not categorized as to custodial credit
risk.
Balances at December 31, 1996:
Credit Risk Category Carrying Market
Securities Type 1 2 3 Amount Value
Investments - Categorized
U.S. Governments $12,033,655 $12,033,655 $11,944,110
Federal Agencies 12,811,497 12,811,497 12,613,250
$24,845,152 $0 $0 24,845,152 24,557,360
Investments - Not categorized
Investments held by broker - dealers
under securities loans
Money market fund 44,978 44,978
Commercial paper 4,754,410 4,754,410
Repurchase agreements 3,701,487 3,701,487
Money market funds 8,414,448 8,414,448
Deferred compensation plan at
market value 3,593,460 3,593,460
Total Investments $45,353,935 $45,066,143
- 32 -
NOTE 2: Cash. Investments and Securities Lendina (continued)
SUMMARY OF CASH AND INVESTMENTS
Balances at December 31, 1996
Cash: Carrying
Amount
Marquette Bank Brookdale, Brooklyn Center, Minnesota $165,616
Riverside Bank, Minneapolis, Minnesota 48,346
Change funds 6,400
Total Cash $220,362
Investments:
Investment Type Interest Rate Maturity
U.S. Treasury notes 5.1-7.8% 1997-2001 $12,033,655
Federal Home Loan Bank bonds 6.0-6.9% 1997-2000 3,937,230
Federal Home Loan Mortgage
bonds 5.2-7.0% 1998-2006 1,110,614
Federal National Mortgage
Association bonds 5.3-7.7% 1998-2006 7,763,653
Commercial paper Floating Rate 1997 4,754,410
Repurchase agreements 5.3-7.2% 1997 3,701,487
Minnesota Municipal Money Market Fund, Insight Investment Management,
Minneapolis, Minnesota 3,160,622
Voyageur Prime Cash Money Market Fund, Marquette Trust, Minneapolis,
Minnesota 550,647
Money Market Fund, First Trust, St. Paul, Minnesota 4,703,179
Dreyfus Treasury Prime Money Market Fund, St. Paul, Minnesota 44,978
Investments for deferred compensation plan at market value 3,593,460
Total Investments $45,353,935
Total Cash, Cash Equivalents and Investments $45,574,297
From Exhibit 1, COMBINED BALANCE SHEET
Cash and cash equivalents $17,135,260
Investments 24,845,577
Investments for deferred compensation plans 3,593,460
$45,574,:297
- 33 -
Note 3: Fixed Assets
Changes in the General Fixed Assets Account Group during 1996 were as follows:
Balance Balance
Jan. 1, 1996 Additions Disposals Dec. 31, 1996
Land $2,369,801 $2,369,801
Buildings & Improvements 6,215,497 $11,014 6,226,511
Park Improvements 3,110,631 245,201 $76,785 3,279,047
Furniture & Fixtures 1,306,679 195,869 12,410 1,490,138
Departmental Equipment 1,082,547 90,051 1,172,598
TOTAL GENERAL FIXED
ASSETS $14,085,155 $542,135 $89,195 $14,538,095
The following is a summary of proprietary fund -type fixed assets at December 31, 1996:
Internal
Enterprise Service
Funds Funds
Land $2,738,600
Land Improvements 92,954
Buildings & Improvements 17,399,614
Mains & Lines 21,852,447
Departmental Equipment 1,281,475 $4,696,440
Total 43,365,090 4,696,440
Less accumulated depreciation (9,487,340) (2,265,422)
Net $33,877,750 $2,431,018
Note 4: Contributed Capital
During 1996 contributed capital changed by the following amounts:
Internal
Enterprise Service
Funds Funds
Additions:
Improvement construction $354,085
Deductions:
Depreciation on contributed assets (309,772) ($213,280)
Net Change 44,313 (213,280)
Contributed Capital, January 1, 1996 20,997,801 3,858,406
Contributed Capital, December 31, 1996 $21,042 $3,645,126
- 34 -
Note 5: Operating Leases
The City leases space for the operation of one of its three
municipal liquor stores under a noncancelable five -year lease.
The lease provides for minimum rent payments, plus a pro -rata
share of common area expenses. Total rental expense under the
lease agreement for the years ended December 31, 1996 and 1995
was $35,936 and $32,584, respectively. Future minimum rent
payments are as follows:
Year Ending Amount
1997 $ 27,207
1998 28,087
1999 7,040
$ 62,334
The Earle Brown Heritage Center Fund, which operates as an
enterprise fund, leases space to four tenants. Three of the
leases have terms greater than one year and require annual
rent increases to cover the anticipated effects of inflation.
Rental revenues and expenditures under the lease agreements
are as follows:
1996 1995
-- - - - - -- -- - - - - --
Rental Revenues $110,505 $112,109
Rental Expenditures $ 81,924 $102,742
Total minimum rentals to be received in the future under the
lease terms are as follows:
Year Ending Amount
1997 $ 45,620
1998 9,918
$ 55,538
- 35 -
Note 6: Long -Term Debt
The City's long -term debt includes state aid street bonds,
special assessment improvement bonds, and tax increment bonds;
all of which are recorded in the General Long -Term Debt
Account Group. In addition, the City issued storm sewer
revenue bonds which are recorded as a liability in the Storm
Drainage Fund.
The following is a summary of bond transactions for the year
ended December 31, 1996:
State Special Storm Sewer Tax
Aid Street Assessment Revenue Increment
Bonds Bonds Bonds Bonds Total
Bonds payable
January 1 $2,455,000 $1,705,000 $1,830,000 $18,055,000 $24,045,000
Bonds issued 1,440,000 1,440,000
Bonds retired 160,000 115,000 110,000 4,850,000 5,235,000
Bonds payable
December 31 $2,295,000 $3,030,000 $1,720,000 $13,205,000 $20,250,000
The annual requirements to amortize all outstanding debt as of
December 31, 1996, including interest of $6,961,945, are as
follows:
State Special Storm Sewer Tax
Aid Street Assessment Revenue Increment
Bonds Bonds Bonds Bonds Total
1997 $308,588 $307,647 $237,595 $1,535,892 $2,389,722
1998 308,478 394,816 240,390 1,555,040 2,498,724
1999 307,560 407,724 237,557 1,827,232 2,780,073
2000 310,706 404,440 239,110 1,875,554 2,829,810
2001 312,740 390,606 239,950 1,969,409 2,912,705
2002 on 1,559,862 1,920,340 954,100 9,366,609 13,800,911
$3,107,934 $3,825,573 $2,148,702 $18,129,736 $27,211,945
If special assessments are not adequate to retire the
outstanding debt, the City's full faith and credit are pledged
for their redemption. The general obligation state aid
street, tax increment and storm sewer revenue bonds are backed
by the full faith and credit of the City.
There are a number of limitations contained in the various
bond indentures. The City is in compliance with all
requirements of the indentures.
- 36 -
Note 6: Long -Term Debt (continued)
Long -term debt obligations outstanding at year -end are summarized as follows:
Bond
Payment Issue Maturity Authorized
Rates % Dates Date Date And Issued Retired Outstanding
State Aid Street Bonds
G.O. State -Aid Street Bonds 4.7 -6.65 4 -01 10 -01 09 -01 -91 04-01 -06 $3,000,000 $705,000 $2,295,000
Total $3,000,000 $705,000 $2,295,000
Special Assessment Bonds
1987 Refunding Bonds 4.7 -5.5 2 -01 8 -01 04 -01-87 02 -01 -97 $1,200,000 $1,160,000 $40,000
1994 Street Improvement Bonds 4.1 -5.5 2 -01 8 -01 08 -01 -94 02 -01-05 835,000 65,000 770,000
1995 Street Improvement Bonds 4.04.9 2 -01 8 -01 11 -01 -95 02 -01-06 780,000 - 780,000
1996 Street Improvement Bonds 4.2 -5.1 2 -01 8 -01 11 -01 -96 02 -01 -07 1,440,000 - 1,440,000
Total $4,255,000 $1,225,000 $3,030,000
Revenue Bonds
1994 Storm Sewer Revenue Bonds 4.2 -5.4 2-018-01 08 -01 -94 02 -01-05 $1,830,000 $110,000 $1,720,000
Total $1,830,000 $110,000 $1,720,000
Tax Increment Bonds
1991 G.O. Tax Increment Bonds 4.7 -6.0 2 -01 8 -01 03 -01 -91 02 -01 -04 $6,050,000 $1,675,000 $4,375,000
1992 G.O. Refunding Tax Incr Bonds 4.5 -5.6 2 -01 8 -01 02 -01 -92 02 -01 -03 4,270,000 - 4,270,000
1995 Taxable G.O. Tax Increment Bonds 6.0 -6.75 2 -01 8 -01 11 -01 -95 02 -01 -11 4,560,000 - 4,560,000
Total $14,880,000 $1,675,000 $13,205,000
In 1992, the City issued the $4,270,000 General Obligation Tax
Increment Refunding Bonds, Series 1992A with a net interest
rate of 5.3 %. The proceeds of the refunding issue, net of
issuance costs, and additional monies, were placed in an
irrevocable escrow account and used to purchase U.S.
Government securities. Until the final crossover date in
1996, the refunded and refunding debt was reported in the
financial statements. In 1996, the escrow account investments
were used to repay refunded crossover principal of $4,180,000.
The refunding resulted in cumulative savings to the City of
$430,748 with a net present value savings of $295,046.
-
37 -
Note 7: Segment information as of and for the year ended December 31, 1996 was as follows:
E. Brown
Enterprise Funds: Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainage
Fund Fund Fund Fund Fund Fund Fund Total
Operating Revenues $2,850,307 $327,642 $2,664,676 $211,468 $1,145,040 $2,182,455 $822,980 $10,204,568
Depreciation Expense 22,745 16,098 333,384 230,236 127,040 41,756 771,259
Operating Income (Loss) 167,957 70,420 (123,421) (8,104) 155,633 151,433 576,255 990,173
Operating Transfers (Out) (100,000) (100,000)
Net Income (Loss) 69,840 12,909 (159,400) (3,002) 436,997 317,440 536,499 1,211,283
Current Capital Contributions 354,085 354,085
Property, Plant & Equipment:
' Additions 9,117 9,260 1,125,585 1,697,605 1,588,620 4,430,187
00 Deletions 2,240 142,003 2,146 146,389
Net Working Capital 247,618 12,149 (116,536) 105,304 4,694,317 2,260,859 204,475 7,408,186
Total Assets 670,864 1,706,354 10,069,759 106,138 14,568,619 10,739,533 4,965,128 42,826,395
Bonds and Other Long -Term
Liabilities Payable from
Operating Revenues 84,384 1,150,000 1,565,000 2,799,384
Total Equity $486,089 $550,586 $9,257,507 $105,304 $14,531,094 $10,587,660 $2,968,312 $38,486,552
Note 8: Interfund Receivables and Payables
Due from other funds and due to other funds are short -term
receivables /payables which have interest rates of 0% to 7 %.
Advances to other funds and advances from other funds are consdered
long -term receivables /payables. Advances have interest rates of 0%
to 8.5% with maturities extending through the year 2011. Advances
between funds are offset by a fund balance reserve account and are
not expendable available financial resources.
Due From Due to
Other Funds Other Funds
General Fund $ 873,932
Special Revenue Funds:
E.B. Farm Tax Increment Fin. Fund $ 170,125
Comm. Development Block Grant Fund 180,761
Economic Development Authority Fund 776,058
Debt Service Funds:
Tax Increment Bonds of 1991 Fund 69,022
Tax Increment Bonds of 1992 Fund 68,982
Tax Increment Bonds of 1995 Fund 29,027
Refunding Bonds of 1987 Fund 36,588
Capital Projects Funds:
Capital Improvements Fund 518,774
M.S.A. Construction Fund 293,317
Special Assessments Constr. Fund 1,552,809
Enterprise Funds:
Earle Brown Heritage Center Fund 585,000
Storm Drainage Fund 177,005
Total $2,665,700 $2,665,700
---- - - - - -- --- - - - - --
---------- ---- - - - - --
Advances to Advances from
Other Funds Other Funds
General Fund $ 105,074
Special Revenue Funds:
E.B. Farm Tax Increment Fin. Fund $ 698,143
Capital Projects Funds:
Capital Improvements Fund 1,261,270
M.S.A. Construction Fund 593,069
Enterprise Funds:
Municipal Liquor Fund 111,270
Golf Course Fund 1,150,000
---- - - - - -- ---- - - - - --
Total $1 $1,959,413
---- - - - - -- ---- - - - - --
-39-
Note 9:
Individual Fund Disclosures
Deficit fund balances exist in the following funds:
Special Revenue Funds:
Earle Brown Tax Increment Financing District:
Unreserved deficit fund balance $843,222
This deficit is being funded through internal borrowing and
will be repaid from future surplus tax increments.
Capital Projects Funds:
Special Assessment Construction:
Unreserved deficit fund balance $784,216
This deficit is being funded through internal borrowing and
will be repaid from the collection of special assessments
already levied.
Enterprise Funds:
Golf Course:
Unreserved deficit retained earnings $86,300
These deficits are being funded through internal borrowing.
It is expected that future profits will cover the deficits.
Note 10: Contingencies
There are several lawsuits pending in which the City is
involved. City Management estimates that the potential claims
against the City not covered by insurance resulting from such
litigation would not materially affect the financial
statements of the City.
Note 11: Risk Management
The City is exposed to various risks of loss related to torts;
theft of, damage to and destruction of assets; errors and
omissions and natural disasters for which the City carries
commercial insurance policies. The City retains risk for the
deductible portions of the insurance policies. The amount of
these deductibles are 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 statements.
40 -
Note 12: Deferred Compensation Plan
The City offers its employees a deferred compensation plan
created in accordance with Internal Revenue Code Section 457.
The plan, available to all City employees, permits them to
defer a portion of their salary until future years. The
deferred compensation is not available to employees until
termination, retirement, death, or unforeseeable emergency.
All amounts of compensation deferred under the plan, all
property and rights purchased with those amounts, and all
income attributable to those amounts, property, or rights are
(until paid or made available to the employee or other
beneficiary) solely the property and rights of the City
(without being restricted to the provisions of benefits under
the plan), subject only to the claims of the City's general
creditors. Participants' rights under the plan are equal to
those of general creditors of the City in an amount equal to
the fair market value of the deferred account for each
participant.
It is the opinion of the City's legal counsel that the City
has no liability for losses under the plan but does have the
duty of due care that would be required of an ordinary prudent
investor. The City believes it is unlikely that it will use
the assets to satisfy the claims of general creditors in the
future.
The City is reporting the activity of this plan as an agency
fund and carries its investment at market value.
Note 13: Post - Employment Health Care Benefits
The City provides post - retirement health care benefits, as per
the requirements of a City Council resolution, for certain
retirees and their dependents. 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. In
lieu of the City payment of the single person premium, the
qualified employee may elect to receive a lump sum payment
calculated by multiplying the number of months between the
date on which the employee retires and the employees 65th
birthday times the monthly average single person premium. To
qualify under this program, 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
- 41 -
Note 13: Post - Employment Health Care Benefits (continued)
consecutive years prior to the effective date of retirement.
Employees artici ate in this program P P ram on a voluntary P g Y basis
As of December 31, 1996, seven employees currently participate
in this program. The cost of City paid health care premiums
for the years ended December 31, 1996 and 1995 was $17,294 and
$18,317, respectively.
In addition, the expenditures in 1996 and 1995 were increased
by $60,839 and $781,205, respectively, to account for the
change in the accrued health insurance liability. In 1995,
the City refined the estimate of the liability for the cost of
employees who will be eligible for this program. The program
was originally enacted in 1986 as an experimental program with
a five year sunset provision. The original method of
estimating the liability reflected this temporary five year
program life span. Repeated extensions of the program have
been approved to the point where it can no longer be viewed as
temporary or experimental. The 1995 refinement of the
liability estimate reflects the current status of the program.
Note 14: Pension Plans:
Public Employees Retirement Association (PERA)
City employees participate in the pension plans administered
b the Public Employees
Y Retirement Association A ociation (PERA) . In
accordance with Government Accounting Standards Board
Statement No. 5 the PERA P lans are classified as a defined
benefit multiple employer cost sharing plans.
Disclosures relating to this plan are as follows:
A. Plan Description
All full -time and certain part -time employees of the City of
Brooklyn Center are covered by defined benefit pension plans
administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA administers the Public Employees
Retirement Fund (PERF) and the Public Employees Police and
Fire Fund (PEPFF) which are cost sharing multiple employer
retirement plans. These plans are established and
administered in accordance with Minnesota Statutes, Chapters
353 and 356.
PERF members belong to either the Coordinated Plan or the
Basic Plan. Coordinated Plan members are covered by Social
Security and Basic members are not. All new members must
participate in the Coordinated Plan. All police officers,
fire fighters and peace officers who qualify for membership by
statute are covered by the PEPFF. The payroll for employees
covered by PERF and PEPFF for the year ended December 31, 1996
I
- 42 -
Note 14: Pension Plans (continued)
A. Plan Description (continued)
was $4,666,466 and $2,177,516 respectively; the City's total
payroll was $7,837,640.
j 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 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 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
member is 2 percent of average salary for each of the first 10
years of service and 2.5 percent for each remaining year. For
a Coordinated member, the annuity accrual rate is 1 percent
of average salary for each of the first 10 years and 1.5
percent for each remaining year. Using Method 2, the annuity
accrual rate is 2.5 percent of average salary for Basic
members and 1.5 percent for Coordinated members. For PEPFF
members, the annuity accrual rate is 2.65 percent for each
year of service. For PERF members whose annuity is calculated
using Method 1, and for all PEPFF members, 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.
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
benefits but are not receiving them yet, are bound by the
provisions in effect at the time they last terminated their
public service.
B. Contributions Required and Contributions Made
Minnesota Statutes Chapter 353 sets the rate for employer and
-43-
Note 14: Pension Plans (continued)
B. Contributions Required and Contributions Made (continued)
employee contributions. The City makes annual contributions
to the pension plans equal to the amount required by state
statutes. According to Minnesota Statutes Chapter 356.215,
Subd. 4(g), the date of full funding required for the PERF and
the PEPFF is July 1, 2020. As part of the annual actuarial
valuation, PERA's actuary determines the sufficiency of the
statutory contribution rates towards meeting the required full
funding deadline. The actuary compares the actual
contribution rate to a "required" contribution rate. -The
required contribution rate consists of (a) normal costs based
on entry age normal cost methods, (b) a supplemental
contribution for amortizing any unfunded actuarial accrued
liability by the date required for full funding, and (c) an
allowance for administrative expenses. Current combined
statutory contribution rates and actuarially required
contribution rates for the plans are as follows:
Statutory Rates Required
Employee Employer Rates*
Public Employees
Retirement Fund:
Basic Plan and
Coordinated Plan 4.30% 4.60% 9.60%
Police & Fire Fund 7.60% 11.40% 19.00%
* The recommended rates scheduled above represent the required
rates for fiscal year 1996 contributions as reported in the
July 1, 1995, actuarial valuation reports.
Total contributions made by the City during fiscal year 1996
were:
Percentage of
Contribution Covered Payroll
Employees Employer Employees Employer
Public Employees
Retirement Fund:
Basic Plan $ 3,726 $ 4,858 8.23% 10.73%
Coordinated
Plan 197,434 210,118 4.23% 4.48%
Police & Fire
Fund 165,492 248,237 7.60% 11.40%
TOTALS $366,652 $463,213
The City's contribution for the year ended June 30, 1996, to
the PERF, represented approximately .17% of total
contributions required of all participating entities. For
- 44 -
Note 14: Pension Plans (continued)
B. Contributions Required and Contributions Made (continued)
PEPFF, contributions for the year ended June 30, 1996,
represented .69% of total contributions required of all
participating entities.
C. Funding Status and Progress
1. Pension Benefit Obligation
The "pension benefit obligation" is a standardized disclosure
measure of the present value of pension benefits, adjusted for
the effects of projected salary increases and step -rate
benefits, estimated to be payable in the future as a result of
employee service to date. The measure which is the actuarial
present value of credited projected benefits, is intended to
help users assess PERA's funding status on a going - concern
basis, assess progress made in accumulating sufficient assets
to pay benefits when due, and make comparisons among Public
Employees Retirement Systems and participating employers. The
measure is independent of the actuarial funding method used to
determine required contributions, which is discussed in Note
B. PERA does not make separate measurements of assets and
pension benefit obligation for individual employers.
The pension benefit obligations as of June 30, 1996
are shown below (in millions):
PERF PEPFF
---------------- - - - - --
Total pension benefit obligation $6,609 $1,243
Net assets available for benefits,
at cost (market value for
PERF = $5,955; PEPFF = $1,714) $5,702 $1,593
Unfunded (assets in excess of)
pension benefit obligation $ 907 $ (350)
The pension benefit obligation was determined as part of an
actuarial valuation at July 1, 1996. ,
For the PERF, significant actuarial assumptions used in the
calculation of the pension benefit obligation include (a) a
rate of return on the investment of present and future assets
of 8.5 percent per year, compounded annually, prior to
retirement, and 5 percent per year, compounded annually,
following retirement; (b) projected salary increases taken
from an age table which incorporates a 5 percent base
inflation assumption; (c) payroll growth at 6 percent per
year, consisting of 5 percent inflation and one percent due to
- 45 -
Note 14: Pension Plans (continued)
C. Funding Status and Progress (continued)
growth in group size; (d) post- retirement benefit increases
that are accounted for by the 5 percent rate of return
assumption following retirement; and (e) mortality rates based
on the 1983 Group Annuity Mortality Table set forward one year
for retired members and set back five years for each active
member.
Actuarial assumptions used in the calculation of the PEPFF
include (a) a rate of return on the investment of present and
future assets of 8.5 percent per year, compounded annually,
prior to retirement, and 5 percent per year, compounded
annually, following retirement, (b) projected salary increases
of 6.5 percent per ear, compounded annually, attributable to
Y P Y�
) c
the effects of inflation; p ost-retirement increases that
i �
are accounted for by the 5 percent rate of return assumption
following retirement; and d mortality q , ( ) y rates based on the
1971 Group Annuity Mortality Table projected to 1984 for males
and females.
2. Changes in Actuarial Assumptions and Methods
Since the July 1, 1995 actuarial valuation, there were no
changes in actuarial assumptions for the PERF and the PEPFF
which impacted funding costs.
Potential changes - in the actuarial assumptions used for the
PEPFF may be made in the future. Results of an experience
study for the fund during the four -year period ending June 30,
1994, disclosed (a) retirees are living longer; (b) the
expected active member death rate is declining; (c) the trend
towards earlier retirement continues; and (d) the pattern of
salary increases varies substantially by ages, with a strong
merit and seniority component at the younger ages. Based on
these results, PERA will soon consider revising the actuarial
assumptions for retirement age, mortality, payroll growth, and
individual salary increases. These changes, if adopted within
fiscal year 1997, will significantly impact the July 1, 1997
actuarial valuation of the PEPFF.
3. Changes in Actuarial Assumptions
The 1996 legislative session did not include any benefit
improvements which would impact funding costs for the PERF and
the PEPFF.
D. Ten -Year Historical Trend Information
Ten -year historical trend information is presented in PERA's
Comprehensive Annual Financial Report for the year ended June
30, 1996. This information is useful in assessing the pension
- 46 -
Note 14: Pension Plans (continued)
D. Ten -Year Historical Trend Information (continued)
plan's accumulation of sufficient assets to pay pension
benefits as they become due.
E. Related Party Investments
As of June 30, 1996 and for the fiscal year then ended, PERA
held no securities issued by the City or other related
parties.
Note 15: Pension Plan - Brooklyn Center
Fire Department Relief Association
A. Plan Description
The City contributes to the Brooklyn Center Fire Department
Relief Association (Association). In accordance with
Government Accounting Standards Board Statement No. 5, it is
classified as a defined benefit single employer public
employee retirement system.
Volunteer fire fighters of the City are members of the
Association and its pension plan. An actuarial study was
completed during 1993 which developed a schedule of benefit
increases which will take effect on January 1 of each year.
The plan's baseline benefit after 20 years of service and
attaining the age 50 increases to $490 per month in 1994, $510
per month in 1995, and $530 per month in 1996. There are
additional benefits for service through 30 years. Vesting
begins with 10 years of service and benefits are pro -rated for
members who have between 10 and 20 years of service. Members
may choose to take a lump sum settlement instead of the
pension, equal to $3,500 in 1994, $3,750 in 1995, and $4,000
in 1996, times the number of years of service, with a maximum
of 30 years. Spouse's, children's and funeral benefits are
also provided. These benefit provisions and all other
requirements are consistent with enabling state statutes.
The City levies property taxes at the direction of and for the
benefit of the association plan and passes through state aids
allocated to the plan, all in accordance with enabling state
statutes.
B. Funding Status and Progress
The amount shown below as the "pension benefit obligation" is
a standardized disclosure measure of the present value of
pension benefits, adjusted for the effects of projected
benefit increases, estimated to be payable in the future as a
result of service to date. The measure is the actuarial
-47-
Note 15: Pension Plan (continued)
B. Funding Status and Progress (continued)
present value of credited projected benefits and is intended
to help users assess the funding status of the association
plans on a going- concern basis, assess progress made in
accumulating sufficient assets to pay benefits when due, and
make comparisons among plans. It is independent of the
actuarial funding method used to determine contributions to
the plan, discussed in "C" below.
The pension benefit obligation was determined as part of an
actuarial valuation at January 1, 1993 and updated as of
January 1, 1997. Significant actuarial assumptions used
include (a) a rate of return on the investment of present and
future assets of 5 percent per year compounded annually, and
(b) no post - retirement benefit increases.
An actuarial update to the pension obligation is performed
annually. On December 31, 1996, the overfunded pension
benefit obligation was as follows:
Pension benefit obligation:
Retirees and beneficiaries currently
receiving benefits and terminated
employees not yet receiving benefits $1,211,267
Current Employees -
Employer- financed vested 999,561
Employer- financed non - vested 158,217
Total pension benefit obligation 2,369,045
Net assets available for benefits
(at carrying value, equals market) 2,668,001
Overfunded pension benefit obligation $ (298,956)
The pension benefit obligation decreased by $346,165 because
the payment of lump sum distributions and the death of three
beneficiaries offset the additional year of service credited
to plan members.
C. Contributions Required and Contributions Made
Financial requirements of the association plan are determined
on an actuarial basis using the entry age normal actuarial
cost method. Normal cost is funded on a current basis.
Contributions at the level specified by the last full
actuarial study will continue to be made until a new study
revises the contribution level. The minimum tax levy
- 48 -
Note 15: Pension Plan (continued)
C. Contributions Required and Contributions Made (continued)
obligation is the financial requirement for the year less
anticipated state aids. The funding strategy for normal cost
should provide sufficient resources to pay plan benefits on a
timely basis.
Total contributions to the plan in 1996 amounted to $127,564,
of which $39,292 was levied by the City of Brooklyn Center and
$88,272 was from the State of Minnesota. The contributed
amounts were actuarially determined as described above and
were based on an actuarial valuation as of January 1, 1993.
The contributions represent funding for normal cost of $68,698
and the amortization of the overfunded actuarial accrued
liability of $26,241.
Significant actuarial assumptions used to compute pension
contribution requirements are substantially the same as those
used to determine the standardized measure of the pension
obligation. The computation of the pension contribution
requirements for 1996 was based on the same actuarial
assumptions, benefit provision, actuarial funding method, and
other significant factors used to determine pension
contribution requirements in previous years with the exception
of the change noted in Section B above.
D. Trend Information
Trend information gives an indication of the progress made in
accumulating sufficient assets to pay benefits when due. Ten
year trend information may be found in the Association's
annual financial report for the year ended December 31, 1996.
Three year trend information for the Association is as
follows:
1996 1995 1994
Available assets as a - - -- - - -- - - --
percentage of benefit
obligation 112% 101% 96%
City's contribution **
as a percentage of *not *not *not
covered payroll applicable applicable applicable
*The Brooklyn Center Fire Department is a volunteer
organization; thus, no covered payroll exists.
* *The City's contribution was made in accordance with
actuarially determined requirements.
-49-
Note 15: Pension Plan (continued)
E. Related Party Investments
As of December 31, 1996, the Association held no securities
issued by the City or other related parties.
Note 16: Fund Changes
The following funds were opened during 1996:
Special Revenue:
Tax Increment District No. 3
Debt Service:
Street Improvement Bonds of 1996
The following funds were closed during 1996:
Special Revenue:
Diseased Tree Removal
Debt Service:
Tax Increment Bonds of 1985
The following funds were reclassified to different fund types
during 1996:
From Capital Projects Funds to Special Revenue Funds:
Housing and Redevelopment Authority Fund
Economic Development Authority Fund
-50-
City of Brooklyn Center, Minnesota
GENERAL FUND
The City of Brooklyn Center Home Rule Charter provides in Section
7.11 that "there shall be maintained in the City Treasury a
classification of Funds which shall provide for a General Fund for
the payment of such expenses of the City as the Council may deem
proper, and such other funds as may be required by statute,
ordinance or resolution."
The General Fund was established to account for all revenues and
expenditures which are not required to be accounted for in other
funds. It has more diverse revenue sources than other funds.
These revenue sources include property taxes, licenses, permits,
fines and forfeits, intergovernmental, service charges, rents, and
investment earnings. The Fund's resources finance a wide range of
functions, including the current operations of general government,
public safety, public works, health and welfare, recreation, and
non - departmental expenditures.
This fund utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in
the accounting period in which the related liability is incurred.
51 -
City of Brooklyn Center AA = 1
General Fund
COMPARATIVE BALANCE SHEET
December 31, 1996
1996 1995
ASSETS
Cash and cash equivalents $3,589,889 $1,525,999
Investments 5,484,065 6,358,348
Accounts receivable 163,658 41,955
Delinquent taxes receivable 204,432 282,251
Due from other funds 873,932 862,831
Due from other governments 37,818 18,399
Advance to other funds 105,074 105,074
TOTAL ASSETS $10,458,868 $9,194,857
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $387,303 $270,614
Securities lending agreement 1,841,455 1,583,783
Due to other governments 17,785
Accrued salaries payable 195,508 134,652
Accrued vacation and sick pay 594,728 563,171
Deferred revenue 917,376 790,060
Total Liabilities 3,936,370 3,360,065
Fund Balance
Reserved for advances to other funds 105,074 105,074
Unreserved fund balance
Designated:
Working capital 5,620,352 5,276,757
Appropriated to next budget 44,718 109,750
Undesignated: 752,354 343,211
Total Fund Balance 6,522,498 5,834,792
TOTAL LIABILITIES AND FUND BALANCE $10,458,868 $9,194,857
- 52
City of Brooklyn Center A_2
General Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual ver
or Under(-) 1995
Budget Actual Budget Actual
Revenues
Property taxes $6,355,958 $6,120,877 ($235,081) $5,946,363
Licenses and permits 348,850 402,000 53,150 318,202
Intergovernmental 3,540,018 3,618,075 78,057 3,543,009
Charges for services 886,068 839,583 (46,485) 822,530
Court fines 144,000 186,761 42,761 178,263
Investment earnings 250,000 312,831 62,831 256,304
Miscellaneous 13,833 15,919 2,086 15,205
Total Revenues 11,538,727 11,496,046 (42,681) 11,079,876
Expenditures
General government 1,873,246 1,736,334 (136,912) 1,831,045
Public safety 5,162,530 5,022,324 (140,206) 4,598,618
Public works 1,545,021 1,270,438 (274,583) 1,363,244
Community services 79,047 78,442 (605) 41,146
Parks and recreation 2,502,915 2,282,054 (220,861) 2,226,121
Economic development 228,000 201,600 (26,400) 209,576
Non - departmental 337,371 317,148 (20,223) 289,747
Total Expenditures 11,728,130 10,908,340 (819,790) 10,559,497
Excess or Deficiency ( -) of
Revenues Over Expenditures (189,403) 587,706 777,109 520,379
Other Financing Sources
Operating transfers in 100,000 100,000 0 100,000
Total Other Financing
Sources 100,000 100,000 0 100,000
Excess or Deficiency ( -) of
Revenues and Other Financing
Sources Over Expenditures (89,403) 687,706 777,109 620,379
Fund Balance January 1 5,834,792 5,834,792 0 5,214,413
Fund Balance December 31 $5,745,389 $6,522,498 $777,109 $5,834,792
- 53 -
I
S -1
City of Brooklyn Center (Continued next page)
General Fund
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Ad Valorem Taxes
Property taxes $5,873,958 $5,712,580 ($161,378) $5,508,843
Penalties and interest (17,357) (17,357) (4,698)
Lodging tax 480,000 424,419 (55,581) 441,159
Special assessments 2,000 1,235 (765) 1,059
Total Ad Valorem Taxes 6,355,958 6,120,877 (235,081) 5,946,363
Licenses and Permits
Liquor and beer 134,500 120,665 (13,835) 105,550
Building permits 128,000 181,706 53,706 109,007
Mechanical permits 28,000 29,275 1,275 41,149
Sewer and water permits 1,000 1,497 497 141
Plumbing permits 13,200 17,211 4,011 21,826
Garbage licenses 2,000 2,300 300 2,245
Taxicab licenses 400 800 400 450
Mechanical licenses 4,000 4,010 10 3,978
Service station licenses 1,700 1,925 225 1,365
Vehicle dealer licenses 950 900 (50) 968
Bowling licenses 700 808 108 908
Cigarette licenses 1,100 1,125 25 850
Sign permits 2,400 2,790 390 2,081
Rental dwelling permits 17,000 21,107 4,107 11,988
Amusement licenses 8,000 7,990 (10) 8,302
Dog licenses 4,800 5,841 1,041 4,713
Miscellaneous business license 1,100 2,050 950 2,681
Total Licenses and Permits 348,850 402,000 53,150 318,202
Intergovernmental
Federal grants:
Miscellaneous grants 7,500 6,000 (1,500) 5,716
Total Federal Grants 7,500 6,000 (1,500) 5,716
State grants:
Local government aid 1,864,946 1,865,664 718 1,799,076
Homestead credit aid 1,272,972 1,272,972 0 1,336,593
Police pension aid 216,000 242,013 26,013 220,630
Fireperson pension aid 66,800 88,272 21,472 69,299
Police training 11,500 13,865 2,365 10,712
Street maintenance aid 90,000 90,000 0 90,000
Miscellaneous grants 10,300 39,289 28,989 10,983
Total State Grants 3,532,518 3,612,075 79,557 3,537,293
Total Intergovernmental Rev. $3,540,018 $3,618,075 $78,057 $3,543,009
- 54 -
S -1
City of Brooklyn Center (Continued from
General Fund prior page)
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Charges for Services
General government charges $30,650 $26,589 ($4,061) $22,075
Public safety charges 19,980 23,399 3,419 31,806
Recreation fees 835,438 789,595 (45,843) 768,649
Total Charges for Services 886,068 839,583 (46,485) 822,530
Court Fines
Fines 144,000 186,761 42,761 178,263
Total Court Fines 144,000 186,761 42,761 178,263
Miscellaneous
Interest on investments 250,000 312,831 62,831 256,304
Forfeited drug money 8,444 8,444 3,597
Other 13,833 7,475 (6,358) 11,608
Total Miscellaneous 263,833 328,750 64,917 271,509
Total Revenues 11,538,727 11,496,046 (42,681) 11,079,876
Other Financing Sources
Operating transfers in:
Liquor Fund 100,000 100,000 0 100,000
Total Revenues and Other Sources $11,638,727 $11,596,046 ($42,681 ) $11,179,876
-55-
City of Brooklyn Center S = 2
General Fund
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL ( Continued
For the Year Ended December 31, 1996 next page)
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
General Government
Mayor and Council:
Personal services $33,653 $33,309 ($344) $32,307
Services and other charges 73,747 41,965 (31,782) 71,437
Total Mayor and Council 107,400 75,274 (32,126) 103,744
Charter Commission:
Services and other charges 2,000 1,681 (319) 2,634
Total Charter Commission 2,000 1,681 (319) 2,634
Administrative Office:
Personal services 326,980 332,215 5,235 375,603
Supplies 1,000 1,787 787 1,145
Services and other charges 59,547 49,746 (9,801) 67,228
Capital outlay 0 7,910
Charged to other funds (23,350) (23,350) 0 (27,725)
Total Administrative Office 364,177 360,398 (3,779) 424,161
Elections and Voter Registration:
Personal services 46,898 47,162 264 18,417
Supplies 3,135 2,309 (826)
Services and other charges 8,975 6,208 (2,767) 3,321
Total Elections and Voter Registration 59,008 55,679 (3,329) 21,738
Assessor's Office:
Personal services 201,035 189,202 (11,833) 184,267
Supplies 3,000 1,892 (1,108) 1,422
Services and other charges 10,812 8,663 (2,149) 9,705
Capital outlay 0
Total Assessor's Office 214,847 199,757 (15,090) 195,394
Finance:
Personal services 376,574 359,500 (17,074) 364,287
Supplies 3,000 1,320 (1,680) 2,987
Services and other charges 1,840 1,424. (416) 1,728
Charged to other funds (198,736) (198,736) 0 (197,394)
Total Finance $182,678 $163,508 ($19,170) $171,608
- 56 -
City of Brooklyn Center S
General Fund
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1996 next page)
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
General Government (continued)
Independent Audit:
Services and other charges $18,900 $18,620 ($280) $18,130
Total Independent Audit 18,900 18,620 (280) 18,130
Legal:
Services and other charges 199,700 185,273 (14,427) 183,725
Total Legal 199,700 185,273 (14,427) 183,725
Government Buildings:
Personal services 154,835 154,105 (730) 127,063
Supplies 22,250 26,585 4,335 26,908
Services and other charges 186,203 183,826 (2,377) 187,548
Capital outlay 6,900 5,310 (1,590) 16,491
Total Government Buildings 370,188 369,826 (362) 358,010
Data Processing:
Personal services 61,436 32,454 (28,982) 51,933
Supplies 9,500 7,023 (2,477) 4,057
Services and other charges 225,217 212,296 (12,921) 214,672
Capital outlay 68,555 64,905 (3,650) 95,053
Charged to other funds (10,360) (10,360) 0 (13,814)
Total Data Processing 354,348 306,318 (48,030) 351,901
Total General Government 1,873,246 1,736,334 (136,912) 1,831,045
Public Safety
Police Protection:
Personal services 3,349,619 3,238,629 (110,990) 3,006,488
Supplies 72,382 60,920 (11,462) 62,579
Services and other charges 591,176 593,265 2,089 645,423
Capital outlay 128,345 125,681 (2,664) 77,327
Total Police Protection 4,141,522 4,018,495 (123,027) 3,791,817
Fire Protection:
Personal services 323,488 319,809 (3,679) 286,701
Supplies 33,178 31,258 (1,920) 41,052
Services and other charges 285,277 283,790 (1,487) 148,447
Capital outlay 27,733 28,557 824 17,722
Total Fire Protection $669,676 $663,414 ($6,262) $493,922
- 57 -
City of Brooklyn Center SS = 2
General Fund
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1996 next page)
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Public Safety (continued)
Protective Inspection:
Personal services $267,693 $263,185 ($4,508) $252,158
Supplies 3,600 1,080 (2,520) 1,093
Services and other charges 41,247 37,876 (3,371) 26,906
Capital outlay 0 764
Total Protective Inspection 312,540 302,141 (10,399) 280,921
Emergency Preparedness:
Personal services 27,093 28,029 936 23,853
Supplies 1,500 688 (812) 1,169
Services and other charges 7,299 6,812 (487) 6,936
Capital outlay 2,900 2,745 (155)
Total Emergency Preparedness 38,792 38,274 (518) 31,958
Total Public Safety 5,162,530 5,022,324 (140,206) 4,598,618
Public Works
Engineering Department:
Personal services 578,249 375,390 (202,859) 357,791
Supplies 7,930 4,338 (3,592) 7,293
Services and other charges 22,238 24,010 1,772 28,765
Capital Outlay 16,000 10,554 (5,446) 3,924
Charged to other funds (261,677) (279,088) (17,411) (190,114)
Total Engineering Dept. 362,740 135,204 (227,536) 207,659
Street Department:
Personal services 447,138 456,169 9,031 448,530
Supplies 158,700 153,833 (4,867) 141,885
Services and other charges 653,443 606,785 (46,658) 660,374
Capital outlay 23,000 18,447 (4,553) 4,796
Charged to other funds (100,000) (100,000) 0 (100,000)
Total Street Dept. 1,182,281 1,135,234 (47,047) 1,155,585
Total Public Works 1,545,021 1,270,438 (274,583) 1,363,244
Community Services
Social Services:
Service and other charges 79,047 78,442 (605) 41,146
Total Social Services 79,047 78,442 (605) 41,146
Total Community Services $79,047 $78,442 ($605) $41,146
- 58 -
City of Brooklyn Center SS =2
General Fund
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued
For the Year Ended December 31, 1996 next page)
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Parks and Recreation
Adult Programs:
Personal services $251,172 $236,047 ($15,125) $241,181
Supplies 40,933 36,070 (4,863) 41,552
Services and other charges 167,321 148,855 (18,466) 157,082
Total Adult Programs 459,426 420,972 (38,454) 439,815
Teen Programs:
Personal services 17,299 14,648 (2,651) 13,595
Supplies 600 1,346 746 1,061
Services and other charges 6,304 4,236 (2,068) 5,970
Total Teen Programs 24,203 20,230 (3,973) 20,626
Children's Programs:
Personal services 130,061 130,709 648 116,982
Supplies 13,081 10,179 (2,902) 12,543
Services and other charges 22,048 14,727 (7,321) 28,003
Total Children's Programs 165,190 155,615 (9,575) 157,528
General Programs:
Personal services 70,316 61,301 (9,015) 65,818
Supplies 590 96 (494) 722
Services and other charges 49,804 39,741 (10,063) 48,218
Total General Programs 120,710 101,138 (19,572) 114,758
Community Center:
Personal services 518,868 515,080 (3,788) 498,374
Supplies 77,208 87,558 10,350 87,561
Services and other charges 220,839 214,344 (6,495) 212,596
Capital outlay 5,000 3,913 (1,087) 11,494
Total Community Center 821,915 820,895 (1,020) 810,025
Park Maintenance:
Personal services 464,760 348,182 (116,578) 333,792
Supplies 62,850 46,246 (16,604) 52,732
Services and other charges 370,375 359,801 (10,574) 289,023
Capital outlay 13,486 8,975 (4,511) 7,822
Total Park Maintenance 911,471 763,204 (148,267) 683,369
Total Parks and Recreation $2,502,915 $2,282,054 ($220,861) $2,226,121
- 59 -
City of Brooklyn Center g = 2
General Fund
SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued from
For the Year Ended December 31, 1996 prior page)
1996
Actual Over
or Under( -) 1995
Economic Develo m
Budget Actual Budget Actual
p ent
Convention Bureau:
Services and other charges $228,000 $201,600 ($26,400) $209,576
Total Economic Development 228,000 201,600 (26,400) 209,576
Nondepartmental
Expenditures not Charged to
Departments:
Supplies 27,000 31,614 4,614 29,359
Services and other charges 307,371 284,146 (23,225) 260,388
Capital outlay 3,000 1,388 (1,612)
Total Nondepartmental 337,371 317,148 (20,223) 289,747
Total Expenditures $11,728,130 $10,908,340 ($819,790) $10,559,497
I
-60-
City of Brooklyn Center, Minnesota
SPECIAL REVENUE FUNDS
The Special Revenue Funds are established to account for revenues
derived from taxes and /or other specific revenue sources. These
resources are usually restricted by statute, City Charter or ordinance
to finance specific City functions or activities.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the
accounting period in which the related liability is incurred.
Housing and Redevelopment Authority Fund (H.R.A.) This fund has
authority to levy an ad valorem property tax for the purpose of
conducting housing and redevelopment projects. These projects are now
done in the E.D.A. Fund and all tax proceeds are transferred to that
fund.
Economic Development Authority Fund (E.D.A.) This fund was
established to account for the Economic Development Authority (E.D.A.)
of Brooklyn Center. The E.D.A. "carries out 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.
Earle Brown Farm Tax Increment Financing District 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.
Tax Increment District No. 3 : This fund has 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.
Diseased Tree Removal Fund This fund was established to account for
the collection of resources and expenditure of these resources for
diseased tree control. Costs are reimbursed by private property
owners, or the General Fund, depending upon where the tree was
located.
Community Development Block Grant Fund 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.
- 61 -
B -1
City of Brooklyn Center
Special Revenue Funds
COMBINING BALANCE SHEET
December 31, 1996
Economic Earle Brown Tax
Development Tax Incr. Increment Community
Authority Financing District Development Totals
Fund District No. 3 Block Grant 1996 1995
ASSETS
Cash and cash equivalents $2,451,526 $67,130 $2,518,656 $988,579
Investments 3,666,628 100,403 3,767,031 5,156,686
Accounts receivable 664
Delinquent taxes receivable 9,532 9,532 12,158
Special assessments:
Deferred
12,691
Delinquent 654
Due from other funds 776,058 776,058 932,748
Due from other governments $25,046 6,454 $180,761 212,261 236,106
TOTAL ASSETS $6,903,744 $25,046 $173,987 $180,761 $7,283,538 $1,340,286
rn
N
LIABILITIES AND FUND BALANCES (DEFICITS)
Liabilities
Accounts payable $11,865 $11,865 $5,723
Securities lending agreement 1,261,142 $34,534 1,295,676 1,026,823
Accrued salaries payable 3,979 3,979 2,767
Accrued vacation and sick pay 21,420
21,420 21,970
Due to other funds $170,125 $180,761 350,886 1,344,983
Advances from other funds 698 ,143 698,143 698,143
Deferred revenue 9,532 9,532 25,503
Total Liabilities 1,307,938 868,268 34,534 180,761 2,391,501 3,125,912
Fund Balances (Deficits)
Reserved:
Bond proceeds 2,896,472 2,896,472 3,477,619
Housing projects 20,918 20,918
Unreserved 2,699,334 (843,222) 118,535 0 1,974,647 736,755
Total Fund Balances (Deficits) 5,595,806 (843,222) 139,453 0 4,892,037 4,214,374
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $6,903,744 $25,046 $173,987 $180,761 $7,283,538 $7,340,286
'I
i
B-2
City of Brooklyn Center
Special Revenue Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1996
Housing
and Economic Earle Brown Tax
Redevelopment Development Tax Increment Increment Diseased Community
Authority Authority Financing District Tree Development Totals
Fund Fund District No. 3 Removal Block Grant 1996 1995
R
Property taxes $120,481 $172,334 $2,180,251 $137,600 $2,610,666 $2,045,307
Special assessments $8,504 8,504 11,220
Intergovernmental 17,345 $55,698 73,043 282,945
Charges for services 3,742 3,742 6,264
Investment earnings 339,104 1,853 3,277 344,234 145,332
Miscellaneous 30,681 30,681 12,845
Total Revenues 137,826 542,119 2,180,251 139,453 15,523 55,698 3,070,870 2,503,913
Expenditures
Personal services 163,480 163,480 161,950
Supplies 102 102 643
Services and other charges 333,801 1,539 6,813 342,153 418,749
Capital outlay 608,875 608,875 500,186
ON Interest 34,914 34,914 78,354
W
Total Expenditures 1,106,258 36,453 6,813 1,149,524 1,159,882
Excess or Deficiency ( -) of Revenues
Over Expenditures 137,826 (564,139) 2,143,798 139,453 8,710 55,698 1,921,346 1,344,031
Other Financing Sources or Uses( -)
Proceeeds from sale of bonds 4,045,280
Operating transfers in 193,524 193,524 401,379
Operating transfers out (137,826) (1,180,000) (55,698) (1,373,524) (1,686,379)
Total Other Financing Sources or Uses( -) (137,826) 193,524 (1,180,000) (55,698) (1,180,000) 2,760,280
Excess or Deficiency ( -) of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses 0 (370,615) 963,798 139,453 8,710 0 741,346 4,104,311
Fund Balance (Deficits) January 1 0 5,966,421 (1,807,020) 0 54,973 0 4,214,374 110,063
Equity Transfers In (Out) (63,683) (63,683)
Fund Balance (Deficits) December 31 $0 $5,595,806 (58 43,222) $139,453 $0 $0 $4,892,037 $4,214,374
City of Brooklyn Center BB = 3
Housing and Redevelopment Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Property taxes $119,636 $120,481 $845 $118,434
Intergovernmental 17,345 17,345 0 18,304
Total Revenues 136,981 137,826 845 136,738
Other Financing Uses
Operating transfers out 136,981 137,826 845 136,738
Excess or Deficiency ( -) of
Revenues over Other Financing Use 0 0 0 0
Fund Balance January 1 0 0 0 0
Fund Balance December 31 $0 $0 $0 $0
-64-
City of Brooklyn Center BB -
Economic Development Authority Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Property taxes $171,903 $172,334 $431 $171,717
Investment Earnings 105,000 339,104 234,104 142,218
Miscellaneous 30,681 30,681 12,845
Total Revenues 276,903 542,119 265,216 326,780
Expenditures
Personal Services 164,420 163,480 (940) 161,950
Supplies 1,100 102 (998) 643
Services and other charges 400,222 333,801 (66,421) 360,338
Capital Outlays 1,260,500 608,875 (651,625) 500,186
Interest 0 77
Total Expenditures 1,826,242 1,106,258 (719,984) 1,023,194
Excess or Deficiency ( -) of
Revenues over Expenditures (1,549,339) (564,139) 985,200 (696,414)
Other Financing Sources
Proceeds from sale of bonds 0 4,045,280
Operating transfers in 407,064 193,524 (213,540) 401,379
Total Other Financing Sources 407,064 193,524 (213,540) 4,446,659
Excess or Deficiency ( -) of
Revenues and Other Financing Sources
Over Expenditures (1,142,275) (370,615) 771,660 3,750,245
Fund Balance January 1 5,966,421 5,966,421 0 2,216,176
Fund Balance December 31 $4,824,146 $5,595,806 $774,660 $5,966,421
-65-
City of Brooklyn Center B_5
Earle Brown Farm Tax Increment. District Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Property taxes $1,335,000 $2,180,251 $845,251 $1,755,156
Charges for services 5,000
Total Revenues 1,335,000 2,180,251 845,251 1,760,156
Expenditures
Services and other charges 1,200 1,539 339 44,025
Interest 90,000 34,914 (55,086) 78,277
Total Expenditures 91,200 36,453 (54,747) 122,302
Excess or Deficiency ( -) of
Revenues over Expenditures 1,243,800 2,143,798 899,998 1,637,854
Other Financinq Uses ( -)
Operating transfers out (1,180,000) (1,180,000) 0 (1,285,000)
Total Other Financing Sources (1,180,000) (1,180,000) 0 (1,285,000)
Excess or Deficiency ( -) of
Revenues over Expenditures
and Other Financing Uses 63,800 963,798 899,998 352,854
Fund Balance January 1 (1,807,020) (1,807,020) 0 (2,159,874)
Fund Balance December 31 ($1,743,220) ($841,222) $899,998 ($1,807,020)
-66-
City of Brooklyn Center B_6
Tax Increment District No. 3
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Property taxes $0 $137,600 $137,600 $0
Investment earnings 1,853 1,853
Total Revenues 0 139,453 139,453 0
Excess or Deficiency ( -) of
Revenues over Expenditures 0 139,453 139,453 0
Fund Balance January 1 0 0 0 0
Fund Balance December 31 $0 $139,453 $139,453 $0
-67-
City of Brooklyn Center BB_7
Diseased Tree Removal Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Special assessments $17,000 $8,504 ($8,496) $11,220
Charges for services 12,000 3,742 (8,258) 1,264
Investment earnings 1,000 3,277 2,277 3,114
Total Revenues 30,000 15,523 (14,477) 15,598
Expenditures
Personal services 2,000 (2,000)
Services and other charges 28,000 6,813 (21,187) 14,386
Total Expenditures 30,000 6,813 (23,187) 14,386
Excess or Deficiency ( -) of
Revenues over Expenditures 0 8,710 8,710 1,212
Fund Balance January 1 54,973 54,973 0 53,761
Equity Transfer Out (63,683) (63,683)
Fund Balance December 31 $54,973 $0 ($54,973) $54,973
i
-68-
City of Brooklyn Center BB -
Community Development Block Grant Fund
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 1996
1996
Actual Over
or Under( -) 1995
Budget Actual Budget Actual
Revenues
Intergovernmental
Federal Grants $270,083 $55,698 ($214,385) $264,641
Total Revenues 270,083 55,698 (214,385) 264,641
Other Financing Uses
Operating transfers out 270,083 55,698 (214,385) 264,641
Excess or Deficiency ( -) of
Revenues over Other Financing Use 0 0 0 0
Fund Balance January 1 0 0 0 0
Fund Balance December 31 $0 $0 $0 $0
-69-
City of Brooklyn Center, Minnesota
SERVICE DEBT FUNDS
The Debt Service Funds were established to account for the payment
(from taxes and other resources) of interest and principal on long -
term general obligation debt.
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:
State Aid Street Bonds Debt Service Fund This fund accounts for the
accumulation of state aid allotments, for payment of principal and
interest on bonds issued in 1991 to finance a comprehensive
improvement and upgrading 69th Avenue North as a state aid route.
Tax Increment Bonds of 1985 & 1991 Funds These funds were
established to account for the accumulation of resources for payment
of principal and interest on general obligation bonds issued in 1985
and 1991 to finance the purchase and redevelopment of the historic
Earle Brown Farm in Brooklyn Center.
Refunding Tax Increment Bonds of 1992 Fund: This fund was established
to account for the resources that will be used to advance refund the
Tax Increment Bonds of
Tax Increment Bonds of 1995 Fund: This fund was established to
account for the accumulation of resources for payment of principal and
interest on general obligation bonds issued in 1995 to finance various
redevelopment projects within the City.
Refunding Bonds of 1987 Fund This fund was established to account
for the collection of special assessments for the payment of principal
and interest on general obligation bonds. The bonds were sold during
1987 to refund Improvement Bonds of 1982.
Street Improvement Bonds of 1994 - 1996 Funds: These funds were
established to account for the collection of special assessments and
property taxes for the payment of principal and interest on general
obligation improvement bonds. The bonds were sold to finance various
street improvement projects within the City.
-70-
C -1
City of Brooklyn Center
Debt Service Funds
COMBINING BALANCE SHEET
December 31, 1996
Refunding
Tax Tax Tax Street Street Street
Increment Increment Increment Refunding Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals
ASSETS of 1991 of 1992 of 1995 of 1987 of 1994 of 1995 of 1996 1996 1995
Cash and cash equivalents $287,459 $287,288 $120,889 $152,377 $225,821 $143,764 $7,567 $1,225,165 $704,486
Investments 429,938 429,682 180,809 227,904 1,268,333 1,766,828
Delinquent taxes receivable 1,300 785 2,085 936
Special assessments receivable:
Deferred 55,385 103,870 157,635 458,099 774,989 465,750
Delinquent 5,515 561 480 6,556 7,757
Due from other funds 69,022 68,982 29,027 36,588 203,619 240,707
Restricted Investments
� 4,180,920
, TOTAL ASSETS $786,419 $785,952 $ 33 0, 725 $4477,769 $331,552 $302,664 $465,666 $3,480,747 $7,367,384
i
LIABILITIES AND FUND BALANCES
Liabilities
Accounts Payable $200 $63 $63 $63 $389
Securites lending agreement 147,878 $147,790 62,189 $78,387 436,244 $441,834
Deferred revenue 60,900 $105,731 158,900 458,099 783,630 474,443
Total Liabilities 148,078 147,790 62,252 139,287 105,731 158,963 458,162 1,220,263 916,277
Fund Balances
Reserved for debt service 638,341 638,162 268,473 338,482 225,821 143,701 7,504 2,260,484 6,451,107
Total Fund Balances 638,341 638,162 268,473 338,482 225,821 143,701 7,504 2,260,484 6,451,107
TOTAL LIABILITIES AND
FUND BALANCES $786,419 $785,952 $330 $477 $331,552 $302,664 $465,666 $3,480,747 $7,367,384
i
C -2
City of Brooklyn Center
Debt Service Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1996
Refunding
State Tax Tax Tax Tax Street Street Street
Aid Increment Increment Increment Increment Refunding Improvement Improvement Improvement
Street Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Totals
Bonds of 1985 of 1991 of 1992 of 1995 of 1987 of 1994 of 1995 of 1996 1996 1995
R evenues
Property taxes $67,529 $68,896 $136,425 $70,214
Special assessments $161,828 32,996 35,699 230,523 281,676
Intergovernmental $308,273 308,273 306,725
Investment earnings $11,321 $8,718 $108,892 $24,790 12,899 9,961 4,669 181,250 253,540
Total Revenues 308,273 11,321 8,718 108,892 24,790 174,727 110,486 109,264 856,471 912,155
Expenditures
Principal 160,000 4,475,000 375,000 50,000 65,000 5,125,000 825,000
Interest 147,873 178,305 266,825 219,623 224,246 3,550 40,057 26,182 1,106,661 1,075,976
Fiscal agent fees 400 1,387 600 125 300 125 $262 3,199 2,009
Total Expenditures 308,273 4,654,692 642,425 219,623 224,371 53,550 105,357 26,307 262 6,234,860 1,902,985
V Excess or Deficiency ( -) of Revenues
N
r Over Expenditures 0 (4,643,371) 63( 3,707) (110,731) 1( 99,E 121,177 5,129 82,957 (262) (5,378,389) (990,830)
Other Financing Sources or Uses ( -1
Proceeds from sale of bonds 7,766 7,766 468,833
Operating transfers in 4,180,000 620,000 560,000 5,360,000 1,285,000
Operating transfers out (4,180,000) 4,180,000
Total Other Financing Sources or Uses ( -) 4,180,000 620,000 (3,620,000) 7,766 1,187,766 1,753,833
Excess or Deficiency ( -) of Revenues and
Other Sources over Expenditures
and Other Uses 0 (463,371) (13,707) (3,730,731) (199,581) 121,177 5,129 82,957 7,504 (4,190,623) 763,003
Fund Balances January 1 0 651,344 652,048 4,180,920 468,054 217,305 220,692 60,744 0 6,451,107 5,688,104
Equity Transfer In (Out) 187,973 187,973 0
Fund Balances December 31 $0 $0 $638,341 $638,162 $268,473 $338,482 $225,821 $143,701 $7,504 $2,260,484 $6,451,107
i
City of Brooklyn Center, Minnesota
CAPITAL PROJECTS FUNDS
The Capital Projects Funds are established to account for all
resources used for the construction or acquisition of capital
facilities by the City except those financed by Enterprise Funds.
This fund type utilizes the modified accrual basis of accounting.
Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the
accounting period in which the related liability is incurred.
The City's Capital Projects Funds included in this section are:
Capital 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.
-73-
D -1
City of Brooklyn Center
Capital Projects Funds
COMBINING BALANCE SHEET
December 31, 1996
Municipal
State Aid Special
Capital for Assessment Totals
Improvements Construction Construction
Fund Fund Fund 1996 1995
ASSETS
Cash and cash equivalents $2,160,533 $1,221,574 $592,810 $3,974,917 $1,819,423
Investments 3,231,405 1,827,049 886,636 5,945,090 7,570,688
Accounts receivable 30,684 183 30,867 30,684
Special assessments:
Deferred 928,756 928,756 905,638
Delinquent 78,412 78,412 57,978
Due from other funds 518,774 293,317 812,091 954,929
Due from other governments 132,977 132,977 1,465,341
Advance to other funds 1,261,270 593,069 1,854,339 1,890,741
TOTAL ASSETS $7,202,666 $4,067,986 $2,486,797 $13,757,449 $14,695,422
LIABILITIES AND FUND BALANCES (DEFICITS)
Liabilities
Accounts payable $14,262 $48,589 $62,851 $4,516
Contracts payable $92,568 276,352 355,640 724,560 347,132
Securities lending agreement 1,111,446 628,416 304,960 2,044,822 1,905,861
Due to other funds 1,552,809 1,552,809 1,050,477
Accrued salaries and wages 140 1,847 1,987 1,373
Deferred revenue 132,977 1,007,168 1,140,145 2,419,957
Total Liabilities 1,204,154 1,052,007 3,271,013 5,527,174 5,729,316
Fund Balances (Deficits)
Reserved:
Advances to other funds 1,261,270 593,069 1,854,339 1,890,741
Unreserved 4,737,242 2,422,910 (784,216) 6,375,936 7,075,365
Total Fund Balances (Deficits) 5,998,512 3,015,979 (784,216) 8,230,275 8,966,106
TOTAL LIABILITIES AND
FUND BALANCES (DEFICITS) $7,202,666 $4,067,986 $2,486,797 $13,757,449 $14,695,422
- 74 -
D -2
City of Brooklyn Center
Capital Projects Funds
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
For the Year Ended December 31, 1996
Municipal
State Aid Special
Capital for Assessment
Improvements Construction Construction Totals
Fund Fund Fund 1996 1995
Revenues
Special assessments $607,887 607,887 363,472
Intergovernmental $1,970,028 1,970,028 1,017,368
Investment earnings $363,357 150,867 31,517 545,741 560,055
Miscellaneous 0 3,975
Total Revenues 363,357 2,120,895 639,404 3,123,656 1,944,870
Expenditures
Personal services 16,765 33,549 180,055 230,369 188,394
Supplies 219 2,395 8,181 10,795 6,780
Services and other charges 13,761 652,658 553,548 1,219,967 476,633
Capital outlay 353,547 1,899,742 1,490,828 3,744,117 2,321,134
Interest 140,642 140,642 92,486
Total Expenditures 384,292 2,588,344 2,373,254 5,345,890 3,085,427
Excess or Deficiency ( -) of Revenues
Over Expenditures (20,935) (467,449) (1,733,850) (2,222,234) (1,140,557)
Other Financing Sources or Uses( -)
Proceeeds from sale of bonds 1,422,720 1,422,720 770,640
Operating transfers in 0 7,357
Operating transfers out 0 (7,357)
Total Other Financing Sources or Uses( -) 1,422,720 1,422,720 770,640
Excess or Deficiency ( -) of Revenues and Other
Financing Sources Over Expenditures and
Other Financing Uses (20,935) (467,449) (311,130) (799,514) (369,917)
Fund Balance (Deficits) January 1 6,019,447 3,483,428 (536,769) 8,966,106 9,336,023
Equity Transfers In 63,683 63,683
Fund Balance (Deficits) December 31 $5,998,512 $3,015,979 ($784,216) $8,230,275 $8,966,106
- 75 -
S -3
City of Brooklyn Center
Capital Improvements Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1996
Project Over( -) Under
1996 to Date Expended
Type of Project Appropriations - Expenditures Expenditures Appropriations
Fire training facility $95,000 $0 $70,000 $25,000
Central garage improvements 1,133,624 11,546 1,234,170 (100,546)
Underground Tank Replacement 5,545 2,468 2,468 3,077
Interim city hall remodelling 440,000 88,915 476,585 (36,585)
Park playground equipment 215,500 220,983 220,983 (5,483)
Shingle Creek Pkwy. Retaining Wall 8,230 9,322 9,322 (1,092)
Northport Tennis Court Improvements 24,650 27,850 27,850 (3,200)
Park Lighting Improvements 31,320 23,208 23,208 8,112
Totals $1,953,869 $384,292 $2,064,586
($110,717)
S-4
City of Brooklyn Center i
Municipal State Aid Construction Fund
PROJECT - LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Beginning to December 31, 1996
Project Over( -) Under
1996 to Date Expended
Project Appropriation Expenditures Expenditures Appropriations
Humboldt Avenue improvements $507,486 $138,101 $539,552 ($32,066)
69th Ave., Shingle Creek Pkwy to Dupont Ave. improvements 1,744,298 1,564,491 1,621,175 123,123
France Ave., 69th Ave to North City Limits improvements 674,400 4,846 4,846 669,554
Orchard Lane East improvements 47,600 75,983 75,983 (28,383)
Brooklyn Boulevard improvements 207,090 35,715 204,706 2,384
Woodbine Neighborhood improvements 75,740 7,289 142,049 (66,309)
Xerxes, 53rd Avenue improvements 121,041 9,788 9,788 111,253
69th Avenue Landscaping, Phase II 70,523 2,470 57,594 12,929
Logan, James and Knox Avenues Neighborhood improvements 974,024 749,661 749,661 224,363
V
V Totals $4,422,202 $2,588,344 $3,405,354 $1,016,848
S -5
City of Brooklyn Center
Special Assessment Construction Fund
PROJECT- LENGTH SCHEDULE OF CONSTRUCTION PROJECTS
From Be-ginning to December 31, 1996
Project Over( -) Under
1996 to Date Expended
Type of Project Appropriations Expenditures Expenditures Appropriations
Logan, James and Knox Avenues improvements $456,530 $722,018 $768,393 ($311,863)
Woodbine Neighborhood improvements 1,280,498 47,086 804,571 475,927
Reforestation of 1994 and 1995 improvement projects 21,293 21,527 21,527 (234)
69th Ave., Shingle Creek Pkwy to Dupont Ave. improvements 154,000 134,460 134,460 19,540
Orchard Lane East improvements 1,395,026 1,248,528 1,289,116 105,910
a° Xerxes, 53rd Avenue improvements 176,400 77,466 77,466 98,934
' Orchard Lane West improvements 1,078,610 52,582 52,582 1,026,028
Totals $4,562,357 $2,303,667 $3,148,115 $1,414,242
I
City of Brooklyn Center, Minnesota
ENTERPRISE FUNDS
The Enterprise Funds were established to account for the financing of
self supporting activities of the City which render services on a user
charge basis to the general public.
Revenues and expenses in these funds are recognized on the accrual
basis of accounting. Revenues are recognized in the accounting period
in which they are earned and become objectively measurable. Expenses
are recognized in the period incurred, if objectively measurable.
The City's Enterprise Funds included in this section are:
Municipal Liquor Fund This fund accounts for the operations of the
City's 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 Heritage Center Fund This fund accounts for the
operation of a pioneer farmstead which has been historically preserved
and restored as a modern multipurpose facility. Its convention center
can host conferences, trade shows, and concerts seating 1,000 people
in either banquet or theater style. The "Inn On The Farm" is a bed
and breakfast with ten rooms available to complement convention
activities or be rented individually. Earle's, a unique special
occasion restaurant, is also located at the "Inn on the Farm ".
Several of the barns have been restored as unique office settings
which have found a niche in the market.
Recycling 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 Utilities 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 77% 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.
79
City of Brooklyn Center E1
Enterprise Funds (Continued next page)
COMBINING BALANCE SHEET
December 31, 1996
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center 8 Refuse utility Sewer Drainage Totals
A SSETS Fund Fund Fund Fund Fund Fund Fund 1996 1995
Current Assets
Cash and cash equivalents $150 $8,417 $214,449 $30,282 $2,262,797 $891,735 $3,407,830 $2,378,526
Investments 45,291 3,384,356 1,333,725 4,763,372 9,324,181
Accounts receivable - net 2,637 437,944 24,773 125,658 255,823 $96,582 943,417 588,058
Accrued revenue 21,370 75,489 192,971 79,645 369,475 578,076
Special assessments receivable:
Deferred 27,886 5,337 292,327 325,550 131,422
Delinquent 4,170 206 4,376 3,148
Due from other governments 66,836 167,531 234,367 611,594
Inventories 328,589 7,500 27,430 15,540 379,059 356,589
Prepaid expenses 16,633 2,000 15,893 125,042 159,568 143,211
Total Current Assets 348,009 17,917 695,716 121,716 5,895,896 2,871,469 636,291 10,587,014 14,114,805
00 CD Fixed Assets
Mains and lines 9,838,931 7,929,599 4,083,917 21,852,447 18,455,923
Structures 327,595 308,890 9,555,862 4,439,590 2,767,677 17,399,614 16,520,591
Equipment 143,013 32,498 1,049,989 29,247 22,138 4,590 1,281,475 1,273,224
Land 107,405 1,391,711 925,000 23,938 3,388 287,158 2,738,600 2,738,600
Land improvements 12,904 77,450 2,600 92,954 92,954
590,917 1,810,549 11,530,851 14,334,306 10,722,802 4,375,665 43,365,090 39,081,292
Less: Allowance for depreciation 268,062 122,112 2,156,808 4,497,529 2,396,001 46,828 9,487,340 8,861,698
Total Net Fixed Assets 322,855 1,688,437 9,374,043 9,836,777 8,326,801 4,328,837 33,877,750 30,219,594
TOTALS $670,864 $1,706,354 $10,069,759 $121,716 $15,732,673 $11,198,270 $4,965,128 $44,464,764 $44,334,399
E1
(Continued from
E. Brown prior page)
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainage Totals
LIABILITIES AND FUND EQUI Fund Fund Fund Fund Fund Fund Fund 1996 19%
TY
Current Liabilities
Accounts payable $40,559 $2,975 $172,653 $834 $14,657 $70,844 $2,860 $305,382 $277,528
Contracts payable 79,200 60,862 140,062 952,564
Securities lending agreement 15,578 1,164,054 458,737 1,638,369 2,331,714
Accrued salaries payable 8,940 920 36,663 7,024 1,829 254 55,630 37,763
Accrued vacation and sick pay 24,006 1,873 17,936 15,844 59,659 52,459
Accrued Interest payable 35,835 35,835 37,760
Due to other funds 585,000 177,005 762,005 595,755
Current portion of long -term debt 26,886 155,000 181,886 134,828
Total Current Liabilities 100,391 5,768 812,252 16,412 1,201,579 610,610 431,816 3,178,828 4,420,371
Lona -Term Liabilities
Bonds payable 1,565,000 1,565,000 1,720,000
00 Advances from other funds 84,384 1,150,000 1,234,384 1,272,844
Total Long -term Liabilities 84,384 1,150,000 1,565,000 2 799,384 2,992,844
Fund Eauity
Contributions 636,886 9,238,244 4,997,510 5,668,426 501,048 21,042,114 20,997,801
Retained earnings (Deficits)
Reserved:
Debt Service 237,595 237,595 198,315
Special assessments 32,056 5,337 292,533 329,926 134,570
Unreserved 486,089 (86,300) 19,263 105,304 9,501,528 4,913,897 1,937,136 16,876,917 15,590,498
Total Retained Earnings (Deficits) 486,089 (86,300) 19,263 105,304 9,533,584 4,919,234 2,467,264 17,444,438 15,923,383
Total Fund Equity 486,089 550,586 9,257,507 105,304 14,531,094 10,587,660 2,968,312 38,486,552 36,921,184
TOTALS $670,864 $1,706,354 $10,069,759 $121,716 $15,732,673 $11, 198, 270 $ 4,965,128 $44,464,764 $44,334,399
City of Brooklyn Center F-:2
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainage Totals
Operating Revenues Fund Fund Fund Fund Fund Fund Fund 1996 1995
Sales and user fees $2,850,307 $327,642 $2,664,676 $211,468 $1,145,040 $2,182,455 $822,980 $10,204,568 $9,715,806
Cost of sales 2,157,659 34,221 373,351 2,565,231 2,421,192
Net Operating Revenues 692,648 293,421 2,291,325 211,468 1,145,040 2,182,455 822,980 7,639,337 7,294,614
I
Operating E=nses
Personal services 369,060 127,364 1,228,081 354,630 182,608 126,234 2,387,977 2,416,138
Supplies 11,499 20,672 159,216 87,393 8,515 858 288,153 285,394
Other services 47,425 39,536 457,471 219,356 182,632 1,687,046 76,396 2,709,862 2,626,706
00 Insurance 13,520 6,451 31,072 216 10,511 4,738 1,481 67,989 79,363
N
Utilities 24,506 12,880 148,684 124,005 21,075 331,150 344,069
Rent 35,936 56,838 92,774 86,718
Depreciation 22,745 16,096 333,384 230,236 127,040 41,756 771,259 744,394
Total Operating Expenses 524,691 223,001 2,414,746 219,572 989,407 2,031,022 246,725 6,649,164 6,582,782
Operating Income (Loss) $167,957 $70,420 ($123,421) ($8,104) $155,633 $151,433 $576,255 $990,173 $711,832
(Continued from
prior page)
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1996 1995
Nonoperatirlg Revenues or ExgensesL-I
Investment earnings $1,668 $788 $5,102 $283,215 $165,450 $47,363 $503,586 $609,594
Special assessments:
Service hookups & delinquencies (6,924) 676 (6,248) 14,194
Other revenue 9 5,073 14,886 7,584
Gain (loss) on disposal of fixed assets (224) (119) (429) (772) (2,375)
Interest and fiscal agent fees (9,598) (58,075) ($35,979) (86,690) (190,342) (192,851)
Nonoperating Totals 1,883 (57,511) (35,979) 5,102 281,364 166,007 (39,756) 321,110 436,146
Income Before Operating Transfers 169,840 12,909
Pe n9 (159,400) (3,002) 436,997 317,440 536,499 1,311,283 1,147,978
OD
w
Operating Transfers Out (100,000) (100,000) (100,000)
Net Income (Loss) 69,840 12,909 (159,400) (3,002) 436,997 317,440 536,499 1,211,283 1,047,978
Depreciation on contributed assets
that reduces contributed capital 309 ,772 309,772 336,822
Retained Earnings (Deficits) Jan. 1 .416,249 (99,209) (131,109) 108,306 9,096,587 4,601,794 1,930,765 15,923,383 14,538,583
Retained Earnings (Deficits) Dec. 31 $486,089 ($66,300) $19,263 $105,304 $9,533,584 $4,919,234 $2,467,264 $17,444,438 $15,923,383
i
I
City of Brooklyn Center ) :-3
Enterprise Funds (Continued next page)
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1996
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse utility Sewer Drainage Totals
Cash flows from operating activities: Fund Fund Fund Fund Fund Fund Fund 1996 1995
Operating income(loss) $167,957 $70,420 ($123,421) ($8,104) $155,633 $151,433 $576,255 $990,173 $711,832
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
Depreciation 22,745 16,098 333,384 230,236 127,040 41,756 771,259 744,394
Changes in assets and liabilities:
Receivables 6,056 (122,915) (6,329) 17,881 77,847 62,573 35,113 537,351
Inventories (27,589) 35 1,663 3,421 (22,470) (28,014)
Prepaid expenses (10,165) (2,000) 1,545 (5,737) (16,357) (54)
Payables (41,235) 667 19,621 334 (30,258) (736,266) 2,489 (784,648) 791,755
Securities lending agreement (1,860) (86,097) (472,474) (132,914) (693,345) 2,331,714
Accrued expenses 3,455 623 17,044 4,386 (302) (139) 25,067 9,502
Accrued Interest payable (1,925) (1,925)
Other nonoperating income 9,813 (1,851) 676 8,638 21,778
co
Net cash provided by (used for)
operating activities 131,037 85,843 126,921 15,959) 293,351 (857,783) 548,095 311,505 5,120,258
Cash flows from noncaoital financing activities:
Proceeds from borrowings on advance 11,500
Proceeds from borrowings on due to other funds 177,005 177,OOS 206,550
Principal repayments on advance (24,902) (11,500)
(36,402) (22,813)
Principal repayments on due to other funds
(10,755) (10,755)
Interest paid on advance from other funds (9,598) (58,075) (67,673) (70,273)
Interest paid on due to other funds (35,979) (35,979) (31,653)
Operating transfers out (100,000) (100,000) (100,000)
Net cash provided by (used for)
noncapkal financing activities ($134,500) ($69,575) ($46,734) $0 $0 $0 $177,005
($73,804) ($6,689)
(Continued from
prior page)
E. Brown
Municipal Golf Heritage Recycling Water Sanitary Storm
Liquor Course Center & Refuse Utility Sewer Drainage Totals
Fund Fund Fund Fund Fund Fund Fund 1996 1995
Cash flows from capital and related
financing activities:
Capital contributions $354,085 $354,085 $146,963
Acquisition and construction of
capital assets ($9,117) ($9,260) ($1,125,585) ($1,697,605) (1,588,620) (4,430,187) (2,998,831)
Principal paid on revenue bonds (110,000) (110,000)
Interest paid on revenue bonds (86,690) (86,690) (90,925)
Net cash provided by (used for) capital
and related financing activities $0 (9,117) (9,260) $0 (1,125,585) (1,697,605) (1,431,225) (4,272,792) (2,942,793)
Cash flows from investing activities:
Investments purchased (10,411) (777,970) (306,586) (1,094,967) (6,526,420)
investments sold or matured 34,853 2,392,785 2,696,638 531,500 5,655,776 5,214,972
i Interest on investments 1,668 788 5,102 283,215 165,450 47,363 503,586 609,594
03
Un Net cash provided by (used for)
i investing activities 1,668 788 0 29,544 1,898,030 2,555,502 578,863 5,064,395 (701,854)
Net Increase (decrease) in cash and
cash equivalents (1,795) 7,939 70,927 13,585 1,065,796 114 (127,262) 1,029,304 1,468,922
Cash and cash equivalents at
beginning of the year 1,945 478 143,522 16,697 1,197,001 891,621 127,262 2,378,526 909,604
Cash and cash equivalents at
end of the year $150 $8,417 $214,449 $30,282 $2,262,797 $891,735 $0 $3,407,830 $2,378,526
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Gain (Loss) on disposal of fixed assets - ($224) - - - ($119) ($429) ($772) ($2,375)
i
E -4
City of Brooklyn Center
Municipal Liquor Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Sales
Liquor $905,644 $878,251
Wine 295,757 267,177
Beer 1,462,664 1,384,539
Soft drinks 58,390 56,404
Other merchandise 127,852 110,405
Total Sales 2,850,307 2,696,776
Less: Cost of Sales 2,157,659 2,043,179
Net Operating Revenues 692,648 653,597
Operating Expenses
Personal services 369,060 365,502
Supplies 11,499 13,063
Other services 47,425 41,659
Insurance 13,520 13,941
Utilities 24,506 23,683
Rent 35,936 32,584
Depreciation 22,745 20,045
Total Operating Expenses 524,691 510,477
Operating Income 167,957 143,120
Nonoperatina Revenue or Expense( -)
Investment earnings 1,668 2,069
Other revenue 9,813 4,924
Interest and fiscal agent fees (9,598) (12,639)
Total Nonoperating 1,883 (5,646)
Operating Transfers to General Fund 100,000 100,000
Net Income 69,840 37,474
Retained Earnings January 1 416,249 378,775
Retained Earnings December 31 $486,089 $416,249
-86-
E -5
City of Brooklyn Center
Golf Course Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Operatina Revenues
Green fees $250,514 $227,233
Rentals 10,374 8,683
Leagues 6,918 7,577
Golf lessons 8,271 11,135
Concessions 25,647 21,689
Merchandise 23,309 22,132
Pop machine 2,470 2,734
Miscellaneous 139 405
Total Operating Revenues 327,642 301,588
Less: Cost of Sales 34,221 36,102
Net Operating Revenues 293,421 265,486
Operating Expenses
Personal services 127,364 127,233
Supplies 20,672 21,471
Other services 39,536 46,757
Insurance 6,451 7,988
Utilities 12,880 12,566
Depreciation 16,098 15,990
Total Operating Expenses 223,001 232,005
Operating Income 70,420 33,481
Nonoperating Revenue or Expense( -)
Investment earnings 788
Loss on disposal of fixed assets (224) (493)
Interest and fiscal agent fees (58,075) (57,634)
Total Nonoperating (57,511) (58,127)
Net Income (Loss) 12,909 (24,646)
Retained Earnings (Deficit) January 1 (99,209) (74,563)
Retained Earnings (Deficit) December 31 ($86,300) ($99,209)
- 87 -
E -6
City of Brooklyn Center
Earle Brown Heritage Center Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Orwratina Revenues
Conventions $757,860 $702,466
Catering 1,469,046 1,249,546
Inn on the Farm 327,265 321,344
Office Rents 110,505 112,109
Total Operating Revenues 2,664,676 2,385,465
Less: Cost of Sales 373,351 341,911
Net Operating Revenues 2,291,325 2,043,554
Operatina Expenses
Personal services 1,228,081 1,258,271
Supplies 159,216 152,491
Other services 457,471 493,619
Insurance 31,072 36,255
Utilities 148,684 137,229
Rent 56,838 54,134
Depreciation 333,384 347,505
Total Operating Expenses 2,414,746 2,479,504
Operating Loss (123,421) (435,950)
Nonoperatina Revenue or Expense( -)
Loss on disposal of fixed assets (347)
Interest and fiscal agent fees (35,979) (31,653)
Total Nonoperating (35,979) (32,000)
Net Loss (159,400) (467,950)
Depreciation on contributed assets that
reduces contributed capital 309,772 336,822
Retained Earnings (Deficit) January 1 (131,109) 19
Retained Earnings (Deficit) December 31 $19,263 ($131,109)
- 88 -
E -7
City of Brooklyn Center
Recycling and Refuse Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Operating Revenues
Recycling service fees $211,468 $212,179
Operating Expenses
Other services 219,356 214,909
Insurance 216 308
Total Operating Expenses 219,572 215,217
Operating Income (Loss) (8,104) (3,038)
Nonoperating Revenues
Investment earnings 5,102 5,632
Total Nonoperating 5,102 5,632
Net Income (Loss) (3,002) 2,594
Retained Earnings January 1 108,306 105,712
Retained Earnings December 31 $105,304 $108,306
- 89 -
i
I
City of Brooklyn Center E -8
Water Utility Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended
December 31 ' 1996
I
1996 1995
Operating Revenues
Service to customers $1,049,352 $968,257
Sale of meters 24,884 23,768
Penalties 70,804 56,809
Total Operating Revenues 1,145,040 1,048,834
_Operating Expenses
Personal services 354,630 376,422
Supplies 87,393 87,234
Contractual services 182,632 185,115
Insurance 10,511 12,981
Utilities 124,005 151,405
Depreciation 230,236 241,251
Total Operating Expenses 989,407 1,054,408
Operating Income (Loss) 155,633 (5,574)
Nonoperating Revenues or Expenses( -)
Investment earnings 283,215 290,593
Special assessments (for hookups & delinquencies) (6,924) 8,883
Other 5,073 2,660
Loss on disposal of fixed assets (494)
Total Nonoperating 281,364 301,642
Net Income 436,997 296,068
Retained Earnings January 1 9,096,587 8 800
,519
Retained Earnings December 31 $9,533,584 $9,096,587
I
-90-
City of Brooklyn Center E_9
Sanitary Sewer Fund
COMPARATIVE STATEMENT OF REVENUES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Operating Revenues
Service to customers $2,182,455 $2,282,067
Op eratin g Ex
n� pen es
Personal services 182,608 186,002
Supplies 8,515 11,110
Contractual services 129,272 137,176
Metropolitan Council Environmental Services 1,557,774 1,427,330
Insurance 4,738 5,774
Utilities 21,075. 19,186
Depreciation 127,040 114,132
Total Operating Expenses 2,031,022 1,900
Operating Income 151 381,357
Nonoperating Revenues
Investment earnings 165,450 238,419
Special assessments (for hookups & delinquencies) 676 5,311
Gain (loss) on disposal of fixed assets (119) (1,041)_
Total Nonoperating 166,007 242,689
Net Income 317,440 624,046
Retained Earnings January 1 4,601,794 3,977,748
Retained Earnings December 31 $4,919,234 $4,601,794
- 91 -
City of Brooklyn Center E -10
Storm Drainage Fund
COMPARATIVE STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
1996 1995
Operating Revenues
Service to customers $822,980 $788,897
Operating Expenses
Personal services 126,234 102,708
Supplies 858 25
Contractual services 76,396 80,141
Insurance 1,481 2,116
Depreciation 41,756 5,471
Total Operating Expenses 246,725 190,461
Operating Income 576,255 598,436
Nonoperating Revenues or Expense( -)
Investment earnings 47,363 72,881
Loss on disposal of fixed assets (429)
Interest and fiscal agent fees (86,690) (90,925)
Total Nonoperating (39,756) (18,044)
Net Income 536,499 580,392
Retained Earnings January 1 1,930,765 1,350,373
Retained Earnings December 31 $2,467,264 $1,930,765
-92-
City of Brooklyn Center, Minnesota
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account, on a cost reimbursement
basis, for the financing of goods or services provided by one
department to other departments of the City.
Revenues and expenses in these funds are recognized on the accrual
basis of accounting. Revenues are recognized in the accounting period
in which they are earned and become measurable. Expenditures are
recognized in the accounting period in which they are incurred.
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 employees 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.
Currently investment earnings are sufficient to provide benefits. In
the event that future costs would exceed earnings, other funds would
be charged for the costs associated with their employees.
Central Garage Fund This fund was established to account for the
acquisition and maintenance of all City vehicles and rolling stock
equipment. Vehicle and equipment maintenance, repair, and replacement
will be provided from rental rates which the Central Garage charges
City operating departments for use of the equipment.
-93-
F_1
City of Brooklyn Center
Internal Service Funds
COMBINING BALANCE SHEET
December 31, 1996
Public
Employee Central
Retirement Garage Totals
ASSETS Fund Fund 1996 1995
i
Current Assets
Cash and cash equivalents $568,147 $1,850,656 $2,418,803 $1,086,253
Investments 849,750 2,767,936 3,617,686 4,536,638
Accounts receivable 3,046 2,557 5,603 13,569
Inventories 13,160 13,160 10,045
Total Current Assets 1,420,943 4,634,309 6,055,252 5,646,505
Fixed Assets
Equipment 4,696,440 4,696,440 4,190,101
Less: Allowance for depreciation 2,265,422 2,265,422 2,205,353
Total Net Fixed Assets 2,431,018 2,431,018 1,984,748
TOTAL ASSETS $1,420,943 $7,065,327 $8,486,270 $7,631,253
LIABILITIES AND FUND EQUITY
Current Liabilities
Accounts payable $96,564 $96,564 $103,362
Securities lending agreement $292,273 952,036 1,244,309 1,134,485
Accrued salaries payable 6,070 6,070 3,837
Accrued vacation and sick pay 26,535 26,535 23,725
Accrued health insurance liability 1,047,920 1,047,920 987,081
Total Current Liabilities 1,340,193 1,081,205 2,421,398 2,252,490
Fund Equity
Contributions:
Transfers from:
General Fund 950,000 950,000 950,000
Debt Service Funds 1,335,437 1,335,437 1,335,437
Capital Projects Funds 8,078 8,078 8,078
Enterprise Funds 588,304 588,304 588,304
General Fixed Asset Account Group 763,307 763,307 976,587
Total Contributions 3,645,126 3,645,126 3,858,406
Retained Eamings:
Unreserved 80,750 2,338,996 2,419,746 1,520,357
Total Fund Equity 80,750 5,984,122 6,064,872 5,378,763
TOTAL LIABILITIES AND FUND EQUITY $1,420,943 $7,065,327 $8,486,270 $7,631,253
- 94 -
F -2
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 1996
Public
Employee Central
Retirement Garage Totals
Fund Fund 1996 1995
O_ peratina Revenues
Billings to departments $1,406,660 $1,406,660 $1,178,383
Sales 9,809 9,809 7,312
Total Operating Revenues 1,416,469 1,416,469 1,185,695
Operatinq Expenses
Personal Services $78,133 231,692 309,825 997,787
Supplies 239,093 239,093 204,439
Other Services 64,868 64,868 51,702
Insurance 34,691 34,691 27,067
Depreciation 388,345 388,345 353,413
Total Operating Expenses 78,133 958,689 1,036,822 1,634,408
Operating Income (Loss) (78,133) 457,780 379,647 (448,713)
Nonoperatin4 Revenue or Expense (A
Investment Earnings 67,305 206,110 273,415 246,539
Gain on disposal of fixed assets 33,047 33,047 12,055
Total Nonoperating 67,305 239,157 306,462 258,594
Net Income (Loss) (10,828) 696,937 686,109 (190,119)
Depreciation on contributed assets that
reduces contributed capital 213,280 213,280 255,949
Retained Earnings January 1 91,578 1,428,779 1,520,357 1,454,527
Retained Earnings December 31 $80,750 $2,338,996 $2,419,746 $1,520,357
-95-
i
F -3
City of Brooklyn Center
Internal Service Funds
COMBINING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1996
Employee Central
Retirement Garage Totals
Fund Fund 1996 1995
Cash flows from operating activities:
Operating income (loss) ($78,133) $457,780 $379,647 ($448,713)
Adjustments to reconcile operating income
(loss) to net cash provided by (used for)
operating activities:
Depreciation 388,345 388,345 353,413
Changes in assets and liabilities:
Accounts receivable (367) 8,333 7,966 (10,542)
Inventories (3,115) (3,115) 7,829
Accounts payable (6,798) (6,798) 87,611
Securities lending agreement 20,309 89,515 109,824 862,521
Accrued salaries and leave 5,043 5,043 2,898
Accrued health insurance liability 60,839 60,839 781,205
Net cash provided by (used for) operating activities 2,648 939,10,3 941,751 1,636,222
Cash flows from capital and related
financing activities:
Acquisition of fixed assets (885,116) (885,116) (397,020)
Proceeds from sale of fixed assets 83,548 83,548 24,685
Net cash provided by (used for) capital and related
financing activities: (801,568) (801,568) (372,335
Cash flows from investing activities:
Investments purchased (195,334) (636,278) (831,612) (3,511,005)
Investments sold or matured 433,126 1,317,438 1,750,564 2,809,287
Interest on investments 67,305 206,110 273,415 246,539
Net cash provided by (used for) investing activities 305,097 887,270 1,192,367 (455,179)
Net increase (decrease) in cash and cash equivalents 307,745 1,024,805 1,332,550 808,708
Cash and cash equivalents at beginning
of the year 260,402 825,851 1,086,253 277,545
Cash and cash equivalents at end of
the year $568,147 $1,850,656 $2,418,803 $1,086,253
NONCASH FINANCING, CAPITAL, AND INVESTING ACTIVITIES
Gain (Loss) on disposal of fixed assets - $33,047 $33,047 $12,055
-96-
City of Brooklyn Center, Minnesota
AGENCY FUNDS
Agency Funds are established to account for assets held by the City
as an agent for other City Funds, governments, or individuals.
The Agency Funds are maintained on the modified accrual basis of
accounting.
The City's Agency Fund included in this section is:
I
Employee Deferred Compensation Fund This fund was established to
account for funds on deposit with the trustees who administer the City
sponsored deferred compensation plan.
I
-97-
City of Brooklyn Center G
Employee Deferred Compensation Fund
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended December 31, 1996
December 31, December 31,
1995 1996
Balance Additions Deductions Balance
ASSETS
Investments for deferred
compensation plans held
by trustees (1) $3,174,761 $608,076 $189,377 $3,593,460
TOTAL ASSETS $3,174,761 $608,076 $189,377 $3,593,460
LIABILITIES
Due to employees for
deferred compensation $3,174,761 $608,076 $189,377 $3,593,460
TOTAL LIABILITIES $3,174,761 $608,076 $189,377 $3,593,460
(1) Investments are reported at market value.
-98-
City of Brooklyn Center, Minnesota
GENERAL FIXED ASSET ACCOUNT GROUP
The General Fixed Asset Account Group was established to account for
the City's fixed assets which are not accounted for in an enterprise
fund, and which are tangible in nature, have a life longer than the
current fiscal year, and have a significant value. Depreciation is
not recorded on those assets.
-99-
City of Brooklyn Center S-t
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY SOURCE
For the Year Ended December 31, 1996
January 1, December 31
1996 1996
Balance Acquisitions Disposals Balance
Investments in General Fixed Assets
Land $2,369,801 $2,369,801
Buildings and improvements 6,215,497 $11,014 6,226,511
Park improvements 3,110,631 245,201 $76,785 3,279,047
Furniture 1,306,679 195,869 12,410 1,490,13E
Departmental equipment 1,082,547 90,051 1,172,598
Total Investments in General
Fixed Assets $14,085,155 $542,135 $89,195 $14,538,095
Sources of Investments
General Indebtedness $1,079,656 $6,837 $1,072,819
General Fund revenues 5,431,008 $173,303 34,392 5,569,919
Liquor store income 163,657 1,037 162,620
Contributions 231,891 1,468 230,423
Capital projects funds 6,384,435 368,832 40,429 6,712,838
Federal grants 794,508 5,032 789,476
Total Sources of Investments $14,085,155 $542,135 $89,195 $14,538,095
- 100 -
S -7
City of Brooklyn Center
SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY
December 31, 1996
Buildings and Park Furniture and
Function Land Improvements Improvements Equipment Total
General government $482,977 $482,977
Government buildings $303,770 $5,578,166 $301,651 420,877 6,604,464
Public safety 72,754 1,243,139 1,315,893
Public works 187,089 187,089
Recreation 259,261 259,261
CD Parks 2,066,031 575,591 2,977,396 69,393 5,688,411
Totals $2,369,801 $6,226,511 $3,279,047 $2,662,736 $14,538,095
S -8
City of Brooklyn Center
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
For the Year Ended December 31, 1996
General Fixed General Fixed
Assets Assets
January 1, December 31,
Function 1996 Additions Deductions 1996
General government $444,737 $38,240 $482,977
Government buildings 6,504,291 100,173 6,604,464
N Public safety 1,203,502 123,554 $11,163 1,315,893
Public works 145,350 54,938 13,199 187,089
Recreation 257,958 3,912 2,609 259,261
Parks 5,529,317 221,318 62,224 5,688,411
Totals $14,085,155 $542,135 $89 $14,538,095
i
City of Brooklyn Center, Minnesota
GENERAL LONG -TERM DEBT ACCOUNT GROUP
The General Long -Term Debt Account Group was established to account
for the City's unmatured general obligation long -term debt that is
secured by the full faith and credit of the City and is not the
primary obligation of an Enterprise Fund of the City.
- 103 -
H
City of Brooklyn Center
COMPARATIVE STATEMENT OF GENERAL LONG -TERM DEBT
December 31, 1996
December 31,
1996 1995.
Amounts Available and to be Provided
Amounts Available in Debt Service Funds $2,260,484 $6,451,107
Amounts to be Provided:
From future tax levies 2,314,492 1,206,259
From future tax increments 11,660,024 12,102,634
From future gas tax allocations 2,295,000 2,455,000
Total Available and to be Provided $18,530,000 $22,215,000
General Long -Term Debt Pavable
State Aid Street Bonds $2,295,000 $2,455,000
Special Assessment Bonds 3,030,000 1,705,000
Tax Increment Bonds 13,205,000 18,055,000
Total General Long -Term Debt $18,530,000 $22,215,000
- 104 -
City of Brooklyn Center l
SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY
December 31, 1996
State Aid Special Total Debt
Street Bonds Assessment Bonds Tax Increment Bonds Service Requirements
Year Principal Interest Principal Interest Principal Interest Principal Interest
1997 $170,000 $138,588 $185,000 $122,647 $780,000 $755,892 $1,135,000 $1,017,127
1998 180,000 128,478 265,000 129,816 840,000 715,040 1,285,000 973,334
1999 190,000 117,560 290,000 117,724 1,165,000 662,232 1,645,000 897,516
2000 205,000 105,706 300,000 104,440 1,280, 000 595,554 1,785,000 805,700
2001 220,000 92,740 300,000 90,606 1,450,000 519,409 1,970,000 702,755
i
2002 230,000 78,788 310,000 76,265 1,540,000 433,892 2,080,000 588,945
2003 245,000 63,821 315,000 61,259 1,645,000 340,413 2,205,000 465,493
' 2004 ,. 265,000 47,496 325,000 45,532 1,775,000 237,302 2,365,000 330,330
2005 285,000 29,616 335,000 28,925 360,000 171,123 980,000 229,664
2006 305,000 10,141 245,000 14,279 360,000 147,362 910,000 171,782
2007 160,000 4,080 385,000 122,585 545,000 126,665
2008 385,000 96,694 385,000 96,694
2009 400,000 70,200 400,000 70,200
2010 415,000 42,694 415,000 42,694
2011 425,000 14,344 425,000 14,344
$2,295,000 $812,934 $3,030,000 $795,573 $13,205,000 $4,924,736 $18,530,000 $6,533,243
City of Brooklyn Center, Minnesota
STATISTICAL SECTION
The statistical section presents comparative statistical data for the
past ten years, and other pertinent information involving taxes,
revenues, expenditures, bonded debt, property valuations, insurance
coverage and miscellaneous statistics.
This information is intended to be useful and of interest to investors
in City bonds, financial institutions, and others interested in
municipal government financial statistics.
- 106 -
TABLE 1
City of Brooklyn Center
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
Last Ten Fiscal Years
Fiscal General Public Public Community Parks and Economic Non- Total
Year Government Safety Works Services Recreation Development Departmental Expenditures
1987 $1,532,185 $2,604,773 $1,552,532 $48,185 $1,597,901 $313,860 $7,649,436
1988 1,768,607 2,716,205 1,768,918 69,117 1,706,516 $162,271 310,475 8,502,109
1989 1,793,495 3,103,222 1,754,800 81,043 1,814,391 168,305 347,315 9,062,571
1990 1,570,143 3,474,108 1,866,847 114,633 1,842,294 169,942 396,550 9,434,517
1991 1,591,108 3,950,862 1,827,052 104,706 1,870,385 177,179 414,149 9,935,441
0
1992 1,797,895 3,938,920 1,594,190 114,579 1,783,811 187,606 273,273 9,690,274
1993 1,560,674 3,870,563 1,756,187 41,325 1,999,270 178,703 300,803 9,707,525
1994 1,692,268 4,409,490 1,230,565 41,495 2,055,479 199,982 312,779 9,942,058
1995 1,831,045 4,598,618 1,363,244 41,146 2,226,121 209,576 289,747 10,559,497
1996 $1,736,334 $5,022,324 $1,270,438 $78,442 $2,282,054 $201,600 $317,148 $10,908,340
Note: Table includes General Fund only.
Source: City Finance Department Records
TABLE 2
City of Brooklyn Center
GENERAL GOVERNMENTAL
REVENUES AND OTHER FINANCING SOURCES BY SOURCE
Last Ten Fiscal Years
General Other
Fiscal Property Licenses Intergovern- Charges for Court Financing Total
Year Taxes & Permits mental Services Fines Misc. Sources Revenue
1987 $2,541,016 $345,019 $3,060,252 $1,114,203 $269,903 $310,613 $166,888 $7,807,894
1988 3,318,656 329,783 3,078,491 1,215,635 243,952 363,918 337,871 8,888,306
1989 3,325,101 365,247 3,628,255 1,124,167 278,812 425,356 176,505 9,323,443
I
1990 3,854,798 297,495 3,201,888 919,537 215,804 443,623 174,925 9,108,070
0 1991 4,274,089 311,751 2,926,570 881,213 202,090 360,800 877,477 9,833,990
00
1992 4,291,322 332,186 3,133,495 794,876 148,701 301,771 620,000 9,622,351
1993 5,006,710 300,480 3,167,214 838,883 140,104 279,211 295,000 10,027,602
1994 5,703,773 317,620 3,443,247 825,959 113,573 241,570 100,000 10,745,742
1995 5,946,363 318,202 3,543,009 822,530 178,263 271,509 100,000 11,179,876
1996 $6,120,877 $402,000 $3,618,075 $839,583 $186,761 $328,750 $100,000 $11,596,046
Note: Table includes General Fund only.
Source: City Finance Department Records
G' 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
1987 $3,396,789 $3,242,573 95.46% $68,651 $3,311,224 97.48% $73,052 2.15%
1988 3,576,812 3,488,174 97.52% 13,090 3,501,264 97.89% 105,521 2.95%
1989 3,505,850 3,418,111 97.50% 55,502 3,473,613 99.08% 84,948 2.42%
1990 4,092,978 3,857,576 94.25% 12,241 3,869,817 94.55% 221,097 5.40%
0
1991 4,670,606 4,478,115 95.88% 79,443 4,557,558 97.58% 249,882 5.35%
1992 5,072,385 4,818,439 94.99% 6,898 4,825,337 95.13% 351,199 6.92%
1993 5,491,707 5,204,161 94.76% (121,158) 5,083,003 92.56% 189,400 3.45%
1994 5,857,342 5,634,255 96.19% (176,148) 5,458,107 93.18% 246,311 4.21%
1995 6,501,197 6,367,437 97.94% (75,645) 6,291,792 96.78% 288,717 4.44%
1996 $6,495,206 $6,358,392 97.89% ($11,917) $6,346,475 97.71% $208,862 3.22°x6
" Total tax levy is net of Homestead and Agricultural Credit Aid.
Source: City Finance Department Records
TABLE 4
City of Brooklyn Center
ASSESSED VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY (1)
Last Ten Fiscal Years
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Population 29,759 29,420 28,578 28,810 28,887 28,558 28,533 28,484 28,463 28,502
Real Property
Assessed value (1): Tax Tax (2) Tax Tax Tax Tax Tax Tax
CRY: Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity
Residential $91,929,246 $90,162,927 $11,834,805 $10, 133, 274 $9,730,898 $9, 193, 012 $9, 077, 238 $9,110,096 $9,045,048 $9,485,333
Non - residential 139,433,999 154,031,355 19,707,624 16,185,832 16,305,868 16,013,701 14,654,123 13,665,143 13,567,573 12,837,157
Area -wide allocation (1,345,864) (8,148,681) (977,841) (1,365,235) (1,384,936) (1,550,097) (1,533,767) (954,616) (687,295) (586,003)
230,017,381 236,045,601 30,564,588 24,953,871 24,651,830 23,656,616 22,197,594 21,820,623 21,925,326 21,736,487
Less Tax Increment District 5,437,588 9,784,473 2,097,505 1,540,518 1,315,724 1,374,157 1,184,328 1,165,933 1,230,055 1,495,154
Total assessed value 224,579,793 226,261,128 28,467,083 23,413,353 23,336,106 22,282,459 21,013,266 20,654,690 20,695,271 20,241,333
Estimated Market Value 854,846,550 910,336,300 950,463,900 1,000,269,000 1,016,754,000 1,000,829,400 978 ,404,100 959,668,700 961,811,400 976,115,400
Personal Property
O
r Assessed value 4,296,001 4,510,313 190,299 530,526 539, 121 543,237 549,751 622,500 622,500 573,984
Estimated market value 9,990,700 10,489,100 3,627,500 10,610,520 10,564,700 11,349,900 11,951,100 13,532,600 13,532,600 12,477,900
Total Taxable Property
Assessed value $228,875,794 $230, 771 ,441 $28,657,382 $23,943,879 $23, 875, 227 $22, 825, 696 $21, 563, 017 $21 ,277,190 $21,317,771 $20,815,317
Estimated market value $864, 837,250 $920,825,400 $954,091,400 $1,010,879,520 $1,027,318,700 $1,012, 179, 300 $ 990, 355, 200 $ 973, 201,300 $975,344,000 $988,593,300
Assessed Value as a percent of
Estimated Market Value 26.46% 25.06% 3.00% 2.37% 2.32% 2.26% 2.18% 2.19% 2.19% 2.11%
Per Capita Valuations
Assessed Value $7,691 $7,844 $1,003 $831 $827 $799 $756 $747 $749 $730
Estimated Market Value $29, 061 $31, 299 $33, 386 $35, 088 $35, 563 $35, 443 $34,709 $34,167 $34,267 $34,685
Source: City Assessing Department Records and Hennepin County
(1) The Minnesota Legislature changed the property tax system for taxes payable in 1989. The tax base of property was changed from assessed values to tax capacity values.
(2) The reduction In residential values is due to a change in the state mandated formula from gross tax capacity to net tax capacity.
TABLE 5
City of Brooklyn Center
DIRECT AND OVERLAPPING TAX RATES AND TAX LEVIES
Last Ten Fiscal Years
TAX RATES IN MILLS (1) Hennepin
School Districts County & Total C . 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 Earl Broom Osseo Robbinsdale Anoka Districts Earl Brown Osseo Robbinsdale Anoka
1987 18.167 1.421 49.640 55.783 56.932 54.926 35.315 104.543 110.686 111.835 108.408
1988 `19.237 1.493 59.372 61.859 58.433 62.181 38.405 118.507 120.994 117.568 119.823
TAX RATES IN TAX CAPACITY RATES(2)
1989 14.260 1.223 43.440 54.465 49.189 51.384 32.898 91.821 102.846 97.570 98.542
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
TAX LEVIES IN DOLLARS School Districts Hennepin
County & Total CRY,
Year Vo-Tech No. 286 No. 279 No. 281 No. 11 Special Schools,
Collectible City (2) School Earl Brown Osseo Robbinsdale Anoka Districts and County
1987 $3,396,789 $293,194 $3,900,388 $3,409,323 $3,726,934 $1,327,348 $8,088,560 $24,142,536
1988 3,576,812 307,506 4,602,806 3,782,157 3,875,906 1,537,601 8,862,771 26,545,559
1989 3,505,850 293,205 4,059,518 3,770,603 3,791,546 2,179,665 8,776,213 26,376,600
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
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..
TABLE 6
City of Brooklyn Center
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
1987 $572,851 $552,168 96.39% $3,139 $555,307 96.94%
1988 556,028 526,594 94.71% 2,723 529,317 95.20%
1989 562,484 545,242 96.93% 59,944 605,186 107.59%
1990 504,682 476,874 94.49% 14,327 491,201 97.33%
N 1991 612,744 595,362 97.16% 23,135 618,497 100.94%
1992 558,265 533,439 95.55% 13,801 547,240 98.03%
1993 488,163 469,814 96.24% 21,188 491,002 100.58%
1994 466,784 444,670 95.26% 7,592 452,262 96.89%
1995 476,852 458,439 96.14% 5,497 463,936 97.29%
1996 $485,019 $459,316 94.70% $4,617 $463,933 95.65%
Source: City Finance Department Records
I
TABLE 7
City of Brooklyn Center
RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
Less: Ratio of Net Net
Gross Amounts Net Bonded Debt Bonded
Fiscal Estimated Assessed Bonded in Debt Bonded to Assessed Debt Per
Year Population Value Debt (1) Service Fund Debt Values Capita
1987 29,759 $228,875,794 $1,740,000 $683,294 $1,056,706 0.46% 35.51
1988 29,420 230,771,441 1,440,000 751,408 688,592 0.30% 23.41
Less: Ratio of Net Net
Tax Gross Amounts Net Bonded Debt to Bonded
Fiscal Estimated Capacity Bonded in Debt Bonded Tax Capacity Debt Per
Year Population Value Debt (l) Service Fund Debt Value Capita
w 1989 28,578 28,657,382 1,130,000 274,843 855,157 2.98% 29.92
1990 28,810 23,943,879 950,000 448,846 501,154 2.09% 17.40
1991 28,887 23,875,227 610,000 486,205 123,795 0.52% 4.29
1992 28,558 22,825,696 310,000 504,146 (194,146) -0.85% (6.79)
1993 28,533 21,563,017 - - - 0.00% -
1994 28,484 21,277,190 - - - 0.00% -
1995 28,463 21,317,771 - - - 0.00% -
1996 28,502 $20,815,317 - - - 0.00% -
Source: City Finance Department Records and Hennepin County
(1) Amount does not include tax increment, state aid street, special assessment, or revenue bonds.
I
Table 8
City of Brooklyn Center
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 1996
Market Value $988,593,300
0
Debt limit 2% of market value
19,771,866
Total bonded debt 20,250,000
Deductions (See Note 6):
A. Bonds:
1. Special Assessment Bonds 3,030,000
2. State Aid Street Bonds 2,295,000
3. Tax Increment Bonds 13,205,000
4. Utility Revenue Bonds 1,720,000
Total Deductions 20,250,000
Total Debt Applicable to Debt Limit 0
Legal Debt Margin, December 31, 1996 $19,771,866
Source: City Finance and Community Development Records
- 114 -
TABLE 9
City of Brooklyn Center
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 1996
City's Share
Governmental Unit Gross Debt Sinking Funds Net Debt Percent Amount
Direct Debt: City of Brooklyn Center (1) $0 $0 $0 100.0% $0
Overlapping Debt:
School Districts:
No. 281 Robbinsdale 0 0 0 7.95% 0
No. 11 Anoka 141,687,792 35,093,431 106,594,361 5.90% 6,289,067
No. 279 Osseo 137,185,000 23,774,251 113,410,749 5.78% 6,555,141
No. 286 Earl Brown 4,400,000 4,400,000 0 100.00% 0
Metropolitan Council 110,525,000 49,444,954 61,080,046 1.01% 616,908
Hennepin County 67,030,000 6,125,572 60,904,428 1.75% 1,065,827
Hennepin County Park Reserve District 13,940,000 2,324,096 11,615,904 2.38% 276,459
Total Overlappina Debt 474,767,792 121,162,304 353,605,488 14,803,403
i
Total Direct and Overlapping Debt $474,767,792 $121,162,304 $353,605,488 $14,803,403
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.
Direct Overlapping
Comparative Net Debt Ratios Charaeable to City Total Debt Debt
Debt to tax capacity value $20,815,317 71.12% 0.00% 71.12%
Debt to market value $988,593,300 1.50% 0.00% 1.50%
Per capita debt, population 28,502 $519.38 $0.00 $519.38
TABLE 10
City of Brooklyn Center
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
Last Ten Fiscal Years
Debt Service
Total Total as a Percent
Debt General Fund of General
Year Principal Interest Service Expenditures Expenditures
1987(1) $2,475,000 $930,252 $3,405,252 $7,649,436 44.52%
1988 640,000 682,561 1,322,561 8,502,109 15.56%
1989 635,000 626,068 1,261,068 9,062,571 13.92%
1990 530,000 585,992 1,115,992 9,434,517 11.83%
1991 940,000 746,401 1,686,401 9,935,441 16.97%
1992(2) 1,880,000 1,195,204 3,075,204 9,690,274 31.73%
1993 1,710,000 1,186,585 2,896,585 9,707,525 29.84%
1994 780,000 1,080,555 1,860,555 9,942,058 18.71%
1995 825,000 1,075,976 1,900,976 10,559,497 18.00%
1996(3) $5,125,000 $1,106,661 $6,231,661 $10,908,340 57.13%
Source: City Finance Department Records
(1) Amounts for 1987 are higher because of the issuance of Refunding
Bonds of 1987 and the defeasance of Improvement Bonds of 1982.
(2) Amounts for 1992 are higher because Tax Increment Bonds of 1983
were called for payment prior to maturity.
(3) Amounts for 1996 are higher because of the defeasance of the Tax
Increment Bonds of 1985.
- 116 -
I
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
1987 $556,222 $412,653 $968,875 $489,374 $479,501 $45,000 $10,786 $55,786 8.595 :1
1988 694,654 375,061 1,069,715 695,395 374,320 45,000 8,889 53,889 6.946 :1
1989 687,982 425,030 1,113,012 665,629 447,383 45,000 7,180 52,180 8.574 :1
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
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 90,925 90,925 7.44 :1
1996 $822,980 $47,363 $870,343 $204,969 $665,374 $110,000 $86,690 $196,690 3.38 :1
Source: City Finance Department Records
(1) Excludes depreciation and interest on bonds.
(2) The Storm Drainage Fund was established in 1991.
TABLE 12
City of Brooklyn Center
PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS
Last Ten Fiscal Years
Commercial Residential
Construction Construction Property Value
Bank
Year Value Units Value Commercial Residential Non - Taxable Deposits
1987 $7,220,527 9 $885,202 $246,784,100 $608,890,900 $92,384,868 N/A
1988 5,084,601 66 3,073,500 286,096,300 634,230,700 89,745,168 N/A
1989 7,288,205 4 278,138 321,452,800 678,898,700 83,719,768 $219,077,986
1990 5,750,567 1 65,249 333,967,220 676,912,300 83,719,768 202,261,488
1991 4,719,147 7 450,745 339,358,500 677,299,800 87,479,168 201,944,156
r
0 1992 5,547,668 14 948,810 344,860,700 667,318,600 107,747,100 199,800,971
1993 7,598,108 7 505,000 322,295,300 668,059,900 108,955,700 200,539,494
1994 5,504,477 9 587,000 301,702,300 671,499,000 109,600,200 197,886,000
1995 9,541,847 2 153,000 297,268,000 678,076,000 110,458,200 $255,238,839
1996 $12,527,095 18 $1,126,000 $284,786,600 $703,806,700 $108,473,400 N/A
Source: City Finance Department Records, Community Development Department Records, and Local Banks.
TABLE 13
City of Brooklyn Center
PRINCIPAL TAXPAYERS
December 31, 1996
Percentage
1996 of Total
Market City Market
Taxpayers Type of Business Valuation Value
Equitable Real Estate Shopping Center $35,264,900 3.57%
Dayton- Hudson Corp. Department Stores 24,123,700 2.44%
Lang- Nelson Apartments 16,470,000 1.67%
Prudential Insurance Co. Office /Retail 15,446,800 1.56%
Ryan Construction Office /Retail 14,796,300 1.50%
Bradley Real Estate Inc. Office 8,850,000 0.90%
Sears Roebeck and Co. Department Store 7,810,000 0.79%
First Industrial Realty Trust Industrial 6,961,200 0.70%
Normandale Tennis Club Health Club 6,232,100 0.63%
SSMRT Mpls. Industrial Industrial 5,050,500 0.51%
Total Market Value $141,005,500 14.26%
TOTAL CITY MARKET VALUE $988,593,300
Source: City Community Development Records
- 119 -
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued next page)
Effective January 1, 1997
Policy Period
Tvve of Coverage and Details From To Liability Limits
I. Statutory Liability to Emaloyees
a. Workers' Compensation 01 -01 -97 01 -01 -98 Statutory
(participant in the League of
Minnesota Cities Insurance Trust Self -
Insured Workers' Compensation Program)
11. Liability to the Public
a. Comprehensive general liability include the following additional coverages:
(a) All employees as additional insureds
(b) Personal injury coverage to include false arrest, libel, slander, wrongful
entry or eviction or invasion of right of privacy.
(c) Broad contractual liability
(d) Products liability
(e) Public Officials' liability
(1) Bodily injury 01 -01 -97 01 -01 -98 $600,000 combined single limit
(2) Property damage 01 -01 -97 01 -01 -98 $600,000 combined single limit
(3) Personal injury 01 -01 -97 01 -01 -98 $600,000 combined single limit
b. Automobile liability,
comprehensive 01 -01 -97 01 -01 -98
(1) Bodily injury $600,000 occurrence
(2) Property damage $600,000 occurrence
(3) Uninsured motorist $600,000 occurrence
C. Liquor stores' dram shop 01 -01 -97 01 -01 -98 $1,000,000 each common
cause
d. Golf Course and Central Park 04 -01 -97 10 -31 -98 $1,000,000 each common
liquor liability cause
e. Personal accident, Volunteers 01 -01 -97 01 -01 -98 $100,000 accidental death
$400tweek short term disability
$1,000 Medical
- 120 -
City of Brooklyn Center Table 14
SCHEDULE OF INSURANCE COVERAGE (Continued from prior page)
Effective January 1, 1997
Buildings
and
Policy Period Structures Content:
(Replacement (Replacement
Type of Coverage and Details From To Cost) Cost)
III. Insurance on City Property 01 -01 -97 01 -01 -98
a. Public and institutional
property, all risk, blanket
$34,748,000; $1,000 deductible
replacement value on buildings.
(1) Civic Center $8,389,000 $1,199,000
(2) East Fire Station $722,000 $157,000
(3) Municipal Service Garage $2,461,000 $564,000
(4) Elevated Water Towers - 3 locations $3,872,000 $0
(5) Park Shelter Buildings -17 locations $1,619,000 $57,000
(6) Pump Houses -10 locations $1,000,000 $110,000
(7) Lift Stations -10 locations $1,170,000 $72,000
(8) Meter Station $18,000 $0
(9) Storage Building $446,000 $25,000
(10) Outdoor lighting systems - 7 locations $320,000 $0
(11) Liquor Store and Fire Station $598,000 $336,000
(12) Humboldt Liquor Store $264,000 $183,000
(13) Leased Liquor Store. $53,000 $183,000
(15) Pedestrian Bridge - 2 locations $1,198,000 $0
(16) Picnic Shelter $60,000 $0
(17) Earle Brown Heritage Center $7,724,000 $1,488,000
(18) Centerbrook Golf Course Club House $348,000 $25,000
(19) Centerbrook Golf Course - Garage $38,000 $8,000
(20) Lions Park Concession Stand $38,000 $3,000
Liability Limits
b. Boiler and machinery 01 -01 -97 01 -01 -98 $5,000,000 per accident
C. Automotive physical damage 01 -01 -97 01 -01 -98
(1) Comprehensive ACV - $1,000 deductible
(2) Collision ACV - $1,000 deductible
IV. Criminal Acts
a. Faithful performance blanket position $500,000 per loss
b. Money and securities (broad form) Various
C. Depositor's forgery $100,000
121 -
TABLE 15
City of Brooklyn Center
DEMOGRAPHIC STATISTICS
Last Ten Fiscal Years
School Enrollments (2)
MPIs- St.Paul No. 286
Fiscal Unemployment C.P.I. No. 11 No. 279 No. 281 Earle
Year Population Rate (1) % (1) Anoka Osseo Robbinsdale Brown
1987 29,759 4.1% 3.0% 989 1,674 570 1,376
1988 29,420 3.5% 5.0% 989 1,674 563 1,456
1989 28,578 3.5% 4.1% 671 1,674 563 1,652
1990 28,810 3.2% 4.1% 642 1,616 540 1,747
1991 28,887 4.6% 2.3% 807 1,680 521 1,327
1992 28,558 4.4% 1.4% 671 1,178 526 1,709
1993 28,533 4.3% 2.7% 691 1,106 540 1,685
1994 28,484 2.6% 2.7% 661 1,071 577 1,681
1995 28,463 2.9% 2.8% 664 1,113 567 1,645
1996 28,502 - 4.0% 3.3% 670 1,109 549 1,672
Minnesota Department Job arch and Statistics De
(1 ) p ment of sand Training, Research t. p
Twin Cities metro area average for year.
(2) School enrollment data was supplied by the schools.
-122-
i`
TABLE 16
City of Brooklyn Center (Continued
MISCELLANEOUS STATISTICAL FACTS next page)
December 31, 1996
Date of Incorporation February 14, 1911
Date of Adoption of City Charter November 8, 1966
Date City Charter Effective December 8, 1966
Form of Government Council- Manager
Fiscal Year Begins January 1
Area of City 8 1/2 square miles
Miles of Streets:
City 105.69
County 6.49
State 10.79
Miles of Storm Sewers 41.13
Number of Street Lights: Owned by N.S.P 908
Owned by City 102
Building Permits: Number Estimated
Issued Cost
1996 607 $16,647,400
1995 603 11,948,205
1994 607 13,418,453
1993 520 11,437,250
1992 573 14,286,465
1991 466 8,800,980
1990 504 8,035,605
1989 526 19,217,696
1988 554 10,846,987
1987 573 10,421,724
City Employees as of December 31, 1996
Regular full -time 151
Temporary or part-time 156
Total 307
Fire Protection:
Number of Stations 2
Number of Full -time Employees 1
Number of Volunteer Firefighters 32
Police Protection:
Number of Stations 1
Number of Full -time Employees 58
Number of Part-time Employees 15
- 123 -
City of Brooklyn Center TABLE 16
MISCELLANEOUS STATISTICAL FACTS (Continued from
December 31, 1996 prior page)
Parks and Recreation:
Park property totals 522 acres developed to serve a wide variety of
recreational interests. Area include playlots, playgrounds, playfields,
trails, nature areas and an arboretum.
Playgrounds 17
Park shelters 17
Ice skating rinks 7
Hockey rinks 5
Softball diamonds 26
Baseball diamonds 6
Tennis courts 18
Basketball courts 15
Municipal Water Plant:
Number of connections 8,922
Average daily consumption in gallons 3,806,759
Peak daily consumption gallons 7,989,000
P in
Plant capacity - gallons per day 17,652,000
Miles of water mains 114.45
Number of fire hydrants 955
Number of wells 9
Number of elevated reservoirs 3
Storage capacity in gallons 3,000,000
Water rate per thousand gallons $0.89
Municipal Sewer Plant:
Number of connections 8,805
Miles of sanitary sewer 104.98
Daily disposal capacity in gallons 10,938,240
Number of lift stations 10
Residential rate per quarter $43.75
Municipal Liquor Stores (Off - sale):
Number of owned stores 2
Number of leased stores 1
1996 sales $2,850,307
Elections:
Last General Election - November 5, 1996
Registered voters 18,333
Votes cast 13,185
Percentage of registered voters voting 72%
Last Municipal Election - 1996
Registered voters 18,333
Votes cast 13,185
Percentage of registered voters voting 72%
- 124 -
9�
MEMORANDUM
DATE: June 19, 1997
TO: Michael McCauley, City Manager
FROM: Jim Glasoe, Acting Recreation Director
SUBJECT: Resolution Authorizing the City of Brooklyn Center to Act as Fiscal Agent for the
1997 -98 Minnesota Department ofChildren, Families and Learning, After School
Enrichment Grant
During the past year, the City has been actively involved in a pilot after school enrichment grant
program, established by the Minnesota Department of Children, Families and Learning. The
intent of the grant is to provide alternate afternoon activities for youth ages 9 -13.
This is a noncompetitive grant program that requires agency collaboration and cooperation. The
Brooklyn Center collaborative committee includes representatives from our four school districts,
the YtiICA, Northwest Hennepin Human Services Council, Hennepin County and the City. This
collaborative approach provides an outlet to utilize the skills and resources of the respective
agencies.
This approach has worked well and the of cooperation has been impressive. In total, more
than 5,000 students (duplicated count) were involved in grant related programming during the
1996 - grant year. The attached grant meeting minutes provide brief summaries of the types
and dimension of programs offered in 1996 -97 and proposed for this year.
Although the city did not receive grant monies directly, we have been involved by providing
program assistance for elementary after school programs and the summer program at the Familv
Resource Center. In addition, staff have attended all grant planning and evaluation meetings.
As partial proof of the success of this cooperative effort, we have recently received word that the
grant has been extended for an additional year. Once again, the grant is targeting after school
activities for youth ages 9 -13 and is contingent upon the collaborative efforts.
In an effort to continue our active involvement, we our seeking City Council approval to act as
fiscal agent for this year's grant. North Hennepin Mediation was the fiscal agent for this year's
grant but has asked that another agency consider taking on the responsibilities for 1997 -98.
Responsibilities of the fiscal agent include attendance at all grant � appropriate meetings a ro riate record
..
,keepin issuance of checks, facilitation of grant meeting agendas and coordination of
ke program
.evaluations. As compensation for our efforts, the grant authorizes reimbursements of up to
S5 for fis
scal went expenses and $,000 for the program evaluation process.
.. P
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY OF BROOKLYN CENTER TO ACT AS
FISCAL AGENT FOR THE 1997 -98 MINNESOTA DEPARTMENT OF CHILDREN,
FAMILIES AND LEARNING, AFTER SCHOOL ENRICHMENT GRANT
WHEREAS, the City has been actively involved in a pilot after school enrichment
grant program, established by the Minnesota Department of Children, Families and Learning; and
WHEREAS, this is a non - competitive grant program that requires agency collaboration
and cooperation; and
WHEREAS, the Brooklyn ' Center collaborative committee is comprised of
representatives from our four school districts, the YMCA, Northwest Hennepin Human Services
Council, Hennepin County and the City; and
WHEREAS, the City has recently received word that the grant has been extended for
an additional year; and
WHEREAS, North Hennepin Mediation was fiscal agent for this year's grant but has
asked that another agency consider taking on the responsibilities for 1997 -98.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota that:
The City of Brooklyn Center's Recreation Division is hereby authorized to act as
fiscal went for the 1997 -98 Minnesota Department of Children, Families and Learning, After School
Enrichment Grant.
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Brooklyn Center After School Enrichment Grant
Meeting Minutes
June 4, 1997
Brookdale Library
Present: Dave Grass, Brooklyn Center Police; Scott Hare, H P Middle
Lib h ool ;Molly
Lorna Rohach, Hosterman Middle School; Julaine Heit, Brookdale Earle Brown
Schaaf, Brookdale Hennepin Area Library; Doug Darnell, BCHS; Linda Hanka,
NW Hennepin Human Services; Nikki
School; Dave Maurer, Osseo Schools; Catherine Elpers,
VanEnglehoven, Northwest YMCA; Chad Canners, Northwest YMCA; Sue LaCrosse, Brooklyn
Center Recreation.
Update
Dave reported there will be full renewal of the grant for 1997-99 vent on Des he
Department andwill be
1998 -99 grant will be rolled into the Prevention, Crime, Inte P
open. The new fiscal year begins July L Once Dave jets the information, he will pass it on.
Molly reported a breakdown of Brooklyn Center elementary youth se Fair Oaks e 56 %
program. Garden City - 100 %, Earle Brown - 91%, Evergreen
Northport - 50 %, Willow Lane - 40 %, Orchard Lane - 30 %, Palmer Lake - 21 %. She said some
schools targeted Brooklyn Center kids.
With the
next grant we are trying to target upper elementary, lower junior high should c onununity locations, offerea
be s activities, free, offered at junior hi element
W d o look at how these tie
during the summer and the focus should b e on co
into the objectives of the grant. .We should target Brooklyn Center youth and then open up.
Every proposal does not have to fit every objective.
Earle Brown
Earle Brown offered a once a week, two hour session with three 60 children each session. The
s
The students got three different activity choices. They serve
Id eight times. They loved it d is e proposing over.
problem is it only allowed each chi , Linda add days and
did not ma a sig
PP nificant impact. To improve the program each of two
P
opportunities. She is proposing two days, 29 weeks. There would be 60 students on
days. They would be able to serve 120 kids all year. Over e90 ° / f to ncreaseEhe arle Brown.
They would set aside 1/3 of the openings for referrals. S proposing computers. In
community service component and continue youth skills in t h Student athletics end of o miss Kid's
order to attend Kids Connection, they have to go
Connection. Last year Earle Brown received $6,900 and are proposing
512,400. Molly said the
staff had an incredible rapport with children on their library visits.
Summer Youth Program
Dave Grass passed out his proposal for the police department,ear. Transportation ntio is provided
d this is
an existing program and the funding will be cut off after this y
from apartments and schools to bowling centers, the pool, and the library'. The program would
run two days a week for the who
le summer. Cost $4,000.
Y Start Program
They will continue with the past grant through December of this year. They had a 7 week session
this ear and are proposing three sessions, nine weeks each. They can serve a total of 36
Y P P
students. They meet two times a week for 3 '/_ hours each. It is educational and recreational in
nature. They are teaching job skills by paying them Whour. They are recruiting through BCHS
t
and may recruit at some apartment completes. They require students attend school that day.
Parental involvement is included and they emphasize time for homework. Last year they received
$6,930 and this year have proposed $11,551.
Brookdale Library
Molly said they cannot do at the same level. Hennepin County funded about $12,000 of their staff
time last year. They are submitting two proposals, one with three visits and one with eight visits.
This would allow them to hire a part time person. They had the opportunity to work with every
student. She found the schools that did more than just the homework program were more
connected. There was a tension between some, not as comfortable of a program. Earle Brown
leaders were excellent, one of the Fair Oaks leaders was excellent. One of the leaders at
Evergreen was trying to be one of the kids. At Northport and Orchard Lane, leaders brought
their own children. This was not a very good situation and Molly recommends against it. Some
leaders at some schools simply disappeared. She said'there was a misunderstanding they were not
just a chaperone, they need to be an involved leader. Molly also shared some of the comments
made by students. She said she did not like the evaluation put together by Wilder.
Grades R Us
Catherine said they did four days last year. They have a coordinator, two teen leaders and
volunteers. They would like to add an entertainment component to enhance the program. Last
year it was partly funded by another funding source. Last year they received $5,250 and are
proposing $12,200.
Hosterman
They want to incorporate enrichment activities one day a week with social skills and academic
enrichment. They want staff members to work with the gifted and talented. They are considering
going out to the apartments. Want to provide parent involvement by training parents with
students on computers. They would run 38 weeks and possibly buy computers. They first
proposed a $20,000 request but dropped it to $10,000. They would target 150 students.
Osseo Area Schools - Elementary
Dave said they would serve five elementary schools, one day a week for 2- hours per day. They
would run three, eight week sessions. They would emphasize arts & crafts, computer enrichment,
e academics. The would be able to address four of the six objectives. Some schools did
and some
parental involvement. They received $33,870 this year and are proposing $35,500.
Osseo Area Schools y Junior Highs
North View did an AiNI hoops program targeting 120 Brooklyn Center youth. The faculty works
with the kids and the purpose is to increase attendance.. With attendance increasing, it is hoped
they will have a better chance of learning. They average 30 -40 each day. They are proposing the
V
same amount as last year, $2,000. Brooklyn Junior tried the ATM hoops but it did not work. They
are proposing $500 to do a mural, first targeting specific youth.
Family Resource Summer Program
The Family Resource Center received some money this year from money not used by Campfire to
expand their summer program. They will be working with the Recreation Division to offer some
new things. Sue said she would like to see some money allocated to continue this for 1998. The
request is $5,000.
Evaluation
It was unanimously decided by the committee not to renew the evaluation program with Wilder.
We will make a standard form ourselves and add responsibilities and reimbursement to the fiscal
agent. The maximum amount is $8,000 for fiscal agent and evaluation. Sue said the City may be
interested in submitting a proposal.
Sue asked that money be allocated for Evergreen and Northport. She said she is certain they wish
to continue a program. She will call Maier and Jamie and ask them to fax their proposals to
Dave.
The figures f he proposals were added and we are 528 905.22 over. Dave will take all of the
Th gores r o t pop ,
proposals and put them on a spreadsheet. He will look at amounts and the number of youth
served by each
Next meeting is scheduled for Thursday, June 19, 1:30 p.m. at the Brookdale Library.
Respectfully Submitted,
Sue LaCrosse
Program Supervisor