HomeMy WebLinkAboutCAFR-2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF BROOKLYNCENTER,
MINNESOTA
Cornelius L. Boganey
City Manager
Prepared By:
FINANCE DIVISION
DEPARTMENT OF FISCAL &SUPPORT SERVICES
Daniel Jordet
Director
Clara Hilger
Assistant Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2009
37
(Member of Government Finance Officers
Association of the United States and Canada)
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-T Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal 1
Principal Officials 6
Organizational Chart 7
Certificate of Achievement 8
FINANCIAL SECTION
Independent Auditor's Report 9
Management's Discussion and Analysis 11
Basic Financial Statements:
Statement of Net Assets 21
Statement of Activities 22
Governmental Funds
Balance Sheet 26
Statement of Revenues, Expenditures, and Changes in Fund Balances 30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities 33
Proprietary Funds
Statement of Net Assets 34
Statement of Revenues, Expenses, and Changes in Fund Net Assets 36
Statement of Cash Flows 38
Notes to the Financial Statements 41
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund 75
Budgetary Comparison Schedule -Tax Increment District No. 3 80
Schedule of Funding Progress — Other Post Employment Benefits 81
Note to Required Supplementary Information 82
Combining and Individual Fund Statements and Schedules:
Nonmaj or Governmental Funds
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 85
Combining Balance Sheet - Nonmaj or Special Revenue Funds 88
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances - Nonmajor Special Revenue Funds 90
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FINANCIAL SECTION (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual:
Special Revenue Fund - Housing and Redevelopment Authority 92
Special Revenue Fund - Economic Development Authority 93
Special Revenue Fund -Earle Brown Tax Increment District 94
Special Revenue Fund -Tax Increment District No. 4 95
Special Revenue Fund - Community Development Block Grant 96
Special Revenue Fund -City Initiatives Grant 97
Combining Balance Sheet - Nonmajor Debt Service Funds 100
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmaj or Debt Service Funds 101
Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual:
Debt Service Fund -G.O. Improvement Bonds 102
Debt Service Fund -Tax Increment Bonds 103
Debt Service Fund - General Obligation Bonds 104
Combining Balance Sheet - Nonmaj or Capital Project Funds 106
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmaj or Capital Project Funds 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual:
Capital Project Fund - Infrastructure Construction 110
Capital Project Fund - Capital Improvements 111
Capital Project Fund - Municipal State Aid for Construction 112
Capital Project Fund -Earle Brown Heritage Center Improvements 113
Capital Project Fund - Street Reconstruction 114
Capital Project Fund - Technology 115
Nonmaj or Enterprise Funds
Combining Statement of Net Assets 118
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 119
Combining Statement of Cash Flows 120
Internal Service Funds
Combining Statement of Net Assets 122
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 123
Combining Statement of Cash Flows 124
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STATISTICAL SECTION (unaudited)
Net Assets by Component 126
Changes in Net Assets 128
Governmental Activities Tax Revenue by Source 135
Fund Balances — Governmental Funds 136
Changes in Fund Balances — Governmental Funds 138
Assessed Tax Capacity and Estimated Actual Value of Taxable Property 140
Property Tax Rates — Direct and Overlapping Governments 142
Principal Property Taxpayers 144
Property Tax Levies and Collections 145
Ratios of Outstanding Debt by Type 146
Ratios of General Bonded Debt Outstanding 147
Computation of Direct and Overlapping Debt 148
Legal Debt Information 149
Pledged Revenue Coverage 150
Demographic and Economic Statistics 152
Principal Employers 153
Full Time City Government Positions by Function 154
Operating Indicators by Function 155
Capital Asset Statistics by Function 156
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City of Brooklyn Center
A Millennium Community
June 1, 2010
Honorable Mayor and Members of the City Council
City of Brooklyn Center
Transmitted herewith is the Comprehensive Annual Financial Report of the City of
Brooklyn Center for the fiscal year ended December 31, 2009.
Management of the City of Brooklyn Center assumes full responsibility for the
completeness and reliability of the information contained in this report based on the
current system of internal control. Because the cost of internal control should not
exceed anticipated benefits, the objective is to provide reasonable, rather than
absolute, assurance that the financial statements are free of any material
misstatements.
Minnesota Statutes and City Charter Section 7.12 require that the financial statements
of the City of Brooklyn Center be audited annually by the State Auditor or a certified
public accountant selected by the City Council. These financial statements have been
audited by Malloy, Montague, Karnowski, Radosevich, & Co., P.A. (MMKR). Their report
is included in the financial section of this report. In addition, MMKR is required to issue
an opinion on the City's management and accounting for grant funds from the federal
government. This " "Single Audit" opinion, when included, is designed to meet the
monitoring needs of federal grantor agencies. That report is not required for 2009 as
the City received less than $ 500,000 in total federal grants.
Management's Discussion and Analysis (MD&A) immediately follows the independent
auditor's report and provides a narrative introduction, overview, and analysis of the
basic financial statements. Management's Discussion and Analysis complements this
letter of transmittal and should be read in conjunction with it.
Profile of the City of Brooklyn Center
The City of Brooklyn Center was incorporated in 1911. It is a northern suburb of the
Twin Cities metropolitan area, adjacent to the City of Minneapolis and located 10 miles
from its downtown area. The City is wholly within Hennepin County and covers an area
of about 8.5 square miles. The Mississippi River forms the City's eastern boundary.
6301 Shingle Creek Parkway Recreation and Community Center Phone & TDD Number
Brooklyn Center, MN 55430 -2199 (763) 569 -3400
City Hall and TDD Number (763) 569 -3300 FAX (763) 569 -3434
FAX (763) 569 -3494
www.cityojbrooklyncenter.org
The City has operated under the council- manager form of government since the
adoption of the City Charter in 1966. The governing body is comprised of the Mayor
and four Council Members elected at large. All members serve four -year terms with
two of the Council Members standing for election during each national election year
cycle. The Mayor and Council Members hire a City Manager who runs the daily
operations of the City.
The City provides a full range of municipal services to its citizens. These include police
and fire protection services, zoning and code enforcement, municipal planning, parks,
recreation activities, construction and maintenance of streets, provision of water,
wastewater collection and treatment, stormwater collection and treatment, and street
lighting. Community and economic development are facilitated through a Housing and
Redevelopment Authority and an Economic Development Authority. The Boards of
those two organizations are comprised of the Mayor and members of the City Council.
The City also has internal departments providing human resources, engineering,
financial management and information technology support to these various functions.
The City operates a conference and meeting facility at the Earle Brown Heritage Center,
two municipal liquor stores, and Centerbrook, a nine -hole executive golf course.
Financial planning and control for the City of Brooklyn Center is based on the Annual
Operating Budget and the multi -year Capital Improvement Program. Under Minnesota
Statutes, a preliminary property tax levy must be adopted no later than September 15
of each year for the ensuing year's collection. This establishes a maximum levy that
may subsequently be lowered but not raised. A ceiling is established from time to time
on that levy by the Minnesota Legislature. The ceiling is normally exclusive of levies for
debt service and referendum approved levies. Effective establishment of this levy
requires that a preliminary budget be prepared. The City Manager prepares such a
budget each summer and presents it to the City Council in August, prior to the
consideration of the preliminary tax levy. In addition, the City Council reviews the
recommended rates and charges for utility funds and other operations on an annual
basis as part of the budget process. Citizens receive a notice of taxes proposed for
their individual properties in November based on the preliminary levies established by
all taxing districts. Following the receipt of this notice citizens are invited to public
hearings in each jurisdiction. The City's hearing includes information about the budget,
the property tax levy and the priorities of the City Council for the coming year as made
evident by the budget allocations. Public comment is heard and considered at this
hearing. The final property tax levy and the resulting operational budgets for the
ensuing fiscal year are adopted at a subsequent meeting.
In addition, a Capital Improvement Program is reviewed and revised during the budget
process each year. This includes projects for which the City may issue debt and /or
assess portions of the cost to adjacent or benefited property owners. Because there
are limited funds available each year and the City does not wish to issue excessive
amounts of debt, these projects must be reviewed and reprioritized each year.
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Local Economy
Brooklyn Center is a mature, developed first ring suburb of Minneapolis that is working
to revitalize itself. With its affordable housing, excellent schools, beautiful parks, and
convenient transportation access it has the potential to continue to be a vibrant
community for many years to come.
The City experienced its most rapid growth from 1950 to 1970 when the City's
population grew from 4,300 to its peak of 35,173. The 2000 Census data for the City
was 29,172. The State Demographer estimates the population for Brooklyn Center at
30,330 as of April, 2008. The number of housing units has decreased from 11,704 in
1990 to an estimated 11 units in 2008. As in most mature, first -ring suburbs there
is a slight trend toward conversion of single family homes to rental properties.
The total estimated market value of real and personal property within the City
decreased 9.28% for 2009 valuations. Residential housing, which makes up 55.07% of
the overall tax base, decreased 12.80% in value while the commercial and industrial
portions of the tax base decreased 0.13% and 1.63% respectively. Values in all
portions of the tax base are expected to drop in the foreseeable future. However, the
proportionate makeup of the property tax base will remain relatively stable. Therefore,
property tax burden is not expected to shift significantly between classifications of
property.
Residential foreclosures and vacant properties were another facet of the economic
outlook for the City in 2009. 305 or 3.65% of non - apartment residential properties in
the City went to Sheriff's Sale during 2009 with 52 of those properties still in the
redemption period as of December 31, 2009. Vacant residential properties as of that
same date numbered 183, 2.22% of the City's non - apartment residential housing.
Major transportation routes in and through the City, including Interstates 94 and 694,
and State Highways 100 and 252, have provided a continued impetus for development
of a strong commercial tax base in the City along these corridors.
There are no large, undeveloped tracts of land in Brooklyn Center and no potential for
annexation of additional undeveloped land. Therefore, the revitalization of Brooklyn
Center is proceeding on three tracks: replacement and renewal of the commercial
areas of the City; reconstruction and enhancement of its streets, utilities, and parks;
and the revitalization of neighborhoods.
The hospitality industry contributes a significant amount to Brooklyn Center's economy.
Lodging tax provided over $ 310,000 for 2009 fiscal year operations. A new 260 bed
Embassy Suites hotel facility opened in 2009. It is immediately adjacent to the City's
Earle Brown Heritage Center conference facility and will complement the conference
facility operations.
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The State of Minnesota has provided significant funding to local governments through
the Local Government Aid (LGA) and Market Value Homestead Credit (MVHC) programs
over the past three decades. Deficit funding projections at the State level have affected
the distribution of LGA and MVHC negatively. In 2009, the City lost $ 463,502 or about
31% of its certified LGA funding during the fiscal year through unallotment.
Consequently, the City was forced to amend its operating budget in April of 2009 to
reflect the loss of LGA and to rebalance the operating budget.
Long Term Financial Planning
As part of a planned replacement of the aging infrastructure, the City continued the
program for street and utility improvements by reconstructing the Aldrich Avenue
neighborhood streets and Shingle Creek Drive in 2009. When streets are reconstructed
in this program, aging water, sanitary and storm sewer infrastructure is also repaired or
replaced. These improvements are funded by general obligation improvement bonds
supported with special assessments against benefited properties, and funds from the
capital projects funds and utility enterprise funds. About one twenty -fifth of the City's
streets and utilities are reconstructed each year. It is expected that this w i l l be an
ongoing process. The Capital Improvements Plan projects completion of the
reconstruction of the streets and utilities in the entire community by 2021. An
additional benefit of these neighborhood projects has been the increased activity by
residents in the maintaining and cleaning up of their properties following reconstruction
projects.
Development of utility rate models has improved the City's ability to plan and generate
cash flow for the scheduled improvements to the water and sewer systems. Separate
funds for street lighting and stormwater drainage have also helped control and prioritize
infrastructure improvements and operations in these areas.
Major Initiatives
Redevelopment continues to be the key to commercial and industrial tax base growth.
The City has acquired three adjacent business properties at the intersection of Highway
100 and Interstate 94. The buildings on the sites were demolished and Phase I
environmental assessments prepared. This created a 14 acre redevelopment site.
Preparations for development of 140,000 square feet of Class A office space and an
adjacent parking structure on 8 acres of the site are ongoing and construction is
expected to begin in the summer of 2010.
A 14 acre redevelopment site at the intersection of Logan and 57 Avenues has
encountered delays because of environmental clean -up of contaminants from a dry
cleaning establishment. The extent of the contamination has been established and
remediation is underway. Grants have been obtained to implement the remediation on
4
the property and in the surrounding neighborhood. Redevelopment proposals are being
solicited for the site.
The City's "Opportunity Site" continues to be a focus for redevelopment efforts. The
City's acquisition and clearing of a former automobile dealership site presents an
opportunity to combine parcels with adjacent properties to create redevelopment
opportunities along County Road 10 and Highway 100.
Awards and Acknowledgements
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 (CAFR) for the fiscal
year ended December 31, 2008. The City was first awarded this certificate in 1966. In
order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized CAFR. The CAFR must satisfy both accounting
principles generally accepted in the United States and applicable federal, state and local
legal requirements.
A Certificate of Achievement is valid for a period of one year. It is expected that the
2009 report conforms to Certificate of Achievement Program requirements. It will be
submitted to the GFOA to determine its eligibility for another certificate.
The preparation and publication of this report would not have been possible without the
efficient work of the Finance staff, especially Clara Hilger, Assistant Finance Director.
We would like to acknowledge all staff that contributed their efforts to the Finance
operations in 2009. We would also like to thank the Mayor and City Council for their
support in promoting and maintaining the highest standards of professionalism and
management of the City of Brooklyn Center.
Respectfully Submitted,
F
Cornelius L. B ganey Dani rdet
City Manager Director of Fiscal &Support Services
s
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2009
Name Position Term of Office Term Expires
ELECTED OFFICIALS
Tim Willson Mayor Four Years December 31, 2010
Kay Lasman Council Member Four Years December 31, 2012
Tim Roche Council Member Four Years December 31, 2012
Dan Ryan Council Member Four Years December 31, 2010
Mark Yelich Council Member Four Years December 31, 2010
APPOINTED OFFICIALS
Cornelius L. Boganey City Manager Appointed
Charles LeFevre City Attorney Contractual Appointee
Sharon Knutson City Clerk Appointed
Vickie Schleuning Assistant City Manager /Building and Community Standards Director Appointed
Scott Bechthold Police Chief Appointed
Steve Lillehaug Director of Public Works /City Engineer Appointed
Lee Gatlin Fire Chief Appointed
James Glasoe Community Activities, Recreation and Services Director Appointed
Gary Eitel Business and Decvelopment Director Appointed
Daniel Jordet Director of Fiscal and Support Services Appointed
6
City of Brooklyn Center Organization
2009
Electorate
City Council Advisory Commissions
Administration
City Attorney City Manager • Human Resources/Payroll
• Communications
• Information Technology
• Elections
• Licenses
• City Clerk
J
Public Works Police Department Community Activities, BuildinL and Community
• Engineering •Patrol
Recreation, and Services Standards
• Street Maintenance • Investigation • Community Programs • Building Inspections
• Sanitary Sewer • Crime Prevention • Recreation Programs • Code Enforcement
• Central Garage • Community Programs • Community Center
• Storm Sewer • Support Services • Government Buildings
• Water Department • Golf Course
• Park Maintenance • Earle Brown Heritage Center
Fire Department Fiscal and Support Services Business and Development
• Fire Prevention • Accounting • Economic Development
• Fire Suppression • Audit • Housing & Redevelopment
• Emergency Preparedness • Utility Billing Authority
• Risk Management • Planning and Zoning
• Liquor Stores • Assessing
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Brookly Center
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2008
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.
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LOWORATgH
v� SQL a nti
�6' President
Executive Director
8
PRINCIPALS
Kcnnerh W. Malloy, CPA
M T�"��&��o�u�,CBA
Thomas 8^Kxmn°ski, CKA
Paul, A.Badosevich, CPA
C E RllF% PUBLIC »0UiamJ. Lauer, CPA
A C C O U N T'A N T S J=cs[LEic6on, CPA
Aaron J. Nielsen, CPA
Victoria LBoUuka, CPA
INDEPENDENT AUDITOR'S REPORT
To the City Council and Residents
City of Brookl Center, Minnesota
Wc have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund"ondthcqggrcgoicrcmnoiningfundinfbnno1ionofthcChvof8rookknCcnicr
(the City) as of and for the year ended [)cccmnbcr 31" 2009" which coUecih/c|v comprise the Chv"y basic
financial statements as listed in the iob|c of contents. These financial statements are the responsibility of
the Chv"y management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued hy the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain rcoyonob|c assurance about whether the financial statements are free of mnoicdo]
misstatement. An audit includes consideration of internal control over financial reporting as oboyiy for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
on opinion on the effectiveness of the Chv"y internal control over financial reporting. Accordingly, we
express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessi the accounting princi
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. Wc believe that our audit provides o reasonable basis for our opinions.
In our opinion" the financial statements referred to above present fairly, in all mnoicrio| rcypcciy" the
respective financial position of the governmental ociivbicy" the business-type activities, each major fund"
and the aggregate remaining fund information of the City as o[ December 3l" 2009" and the rcspcoih/c
changes in financial position and cash flon'y" where applicable thcrcof for the year then ended, in
conformity with accounting princi generally accepted in the lJnbcd 8ioicy of America.
ln accordance with Government A uditing Standards, ne have also iy sued o report dated May 27"2OlOon
our considerat of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, conirooiy" grant agreements, and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide on opinion on the internal control over
financial repor or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards and should bc considered inassessi the results of our audit.
(continued)
Ma(]oy. Mo"c=guc, K=r"o°sk/, Ro6"s=.Ic6 & Co , P.A.
The Management's Discussion and Analysis and required supplementary information, as listed in the
table of contents, is not a required part of the basic financial statements, but is supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management, regarding the
methods of measurement and presentation of the required supplementary information. However, we did
not audit the information and express no opinion on it
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, combining and individual fund
statements and schedules, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual fund statements and schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole. The introductory section
and statistical section have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.
]] -16
ct t i p �A rV �i rnd , �1 6:s e.44 C / Co
May 27, 2010
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Brooklyn Center (the City), we offer readers of the City of Brooklyn Center's
Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2009. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of transmittal,
which can be found on pages 1 through 5 of this CAFR.
Financial Hi2hli2hts
• The assets of the City exceeded liabilities by a 4.9 to 1 margin at the close of the most recent fiscal
year. Current assets exceed current liabilities by an 8 to 1 margin. The $ 117,794,399 of net assets
includes cash and investments, streets, buildings, equipment, land and other City assets. Of this
amount, $ 13,762,927 is classified as unrestricted net assets which may be used to meet the
government's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
• The City's total net assets increased by $ 790,007 or 0.675% from 2008 to 2009.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $ 30,235,846. Of this total amount, $ 31,048,915, or 103% is designated or reserved
through legal restrictions and City Council authorization.
• At the end of the current fiscal year the general fund balance of $ 8,530,005 included $ 1,774 reserved
for committed contracts, $ 25,719 reserved for inventories, $ 500 reserved for prepaid items, and
$ 8,502,012 designated for cash flow purposes.
• The City's total outstanding debt decreased by $ 4,140,000 during the current fiscal year, from
$ 29,525,000 to $ 25,3 85,000.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements include three components: 1) government -wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This CAFR also contains other
supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to provide
readers with a broad overview of the City's finances, in a manner similar to a consolidated financial statement.
The statement of net assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and
earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business -type
activities). The governmental activities of the City include general government, public safety, public works,
community services, recreation and economic development. The business -type activities of the City include
water and sewer, street lighting, liquor operations, golf course, convention center, storm drainage and recycling.
11
Management's Discussion and Analysis
The government -wide financial statements can be found on pages 21 through 23 of this CAFR.
Fund Financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental fund financial statements focus on near -term inflows and outflows of
spendable resource, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government's near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statement. By doing so, readers may better
understand the long -term impact of the City's near -term financial decisions. Both the governmental fund
balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains nineteen individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General fund, Tax Increment District No. 3 special revenue fund, the G.O.
Improvement Bonds debt service fund, the Tax Increment Bonds debt service fund, and the Infrastructure
Construction capital project fund, which are considered to be major funds. Data from the other governmental
funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this CAFR.
The basic governmental fund financial statements can be found on pages 26 through 33 of this CAFR.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the governmental -wide financial statements.
The City uses enterprise funds to account for its municipal liquor, golf course, Earle Brown Heritage Center,
water, sanitary sewer, storm drainage, recycling /refuse, and street lighting operations. Internal service funds are
an accounting device to accumulate and allocate costs internally among the City's various functions. The City
uses internal service funds for its central garage, employee retirement, and compensated absences. Because all
of these services predominantly benefit governmental rather than business -type functions, they have been
included within the governmental activities in the government -wide financial statements.
Proprietary funds provide similar information to the government -wide financial statements but in more detail.
The proprietary fund financial statements provide separate information for the municipal liquor, golf course,
Earle Brown Heritage Center, water utility, sanitary sewer utility, and storm drainage utility operations, each of
which are considered to be major funds of the City. Conversely, all internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 34 through 39 of this CAFR.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government —wide and fund financial statements. The notes to the
financial statements can be found on pages 41 through 73 of this CAFR.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information on budgetary compliance for its major funds. The City
12
Management's Discussion and Analysis
adopts an annual appropriated budget for its general, special revenue, debt service, and capital project funds. A
budgetary comparison statement has been provided for the general and major special revenue fund to
demonstrate compliance with this budget. These can be found on pages 75 through 80 of this CAFR.
The combining statements referred to earlier in connection with nonmaj or governmental funds, nonmaj or
enterprise funds, and internal service funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and schedules can be found
on pages 84 through 124 of this CAFR.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indictor of a government's financial position. In the
case of the City, assets exceeded liabilities by $ 117,794,399 at the close of the most recent fiscal year.
The largest portion of the City's net assets ($ 75,003,481 or 64 percent) reflects its investment in capital assets
(e.g. land, infrastructure, buildings, machinery, and equipment) less any related debt used to acquire those assets
that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City's investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
CITY'S NET ASSETS
Governmental Activities Business -type Activities Total
2009 2008 2009 2008 2009 2008
Current and other assets $ 55,797,109 $ 57,191,433 $ 9,783,325 $ 11,315,279 $ 65,580,434 $ 68,506,712
Capital assets 40,296,371 39,386,221 42,297,110 42,572,362 82,593,481 81,958,583
Total assets 96,093,480 96,577,654 52,080,435 53,887,641 148,173,915 150,465,295
Long -term liabilities
outstanding 22,312,824 26,500,403 - - 22,312,824 26,500,403
Other liabilities 7,119,011 6,112,138 947,681 848,362 8,066,692 6,960,500
Total liabilities 29,431,835 32,612,541 947,681 848,362 30,379,516 33,460,903
Net assets
Invested in capital assets,
net of related debt 33,550,664 31,423,905 42,297,110 42,572,360 75,003,481 72,993,581
Restricted 29,027,991 31,850,784 - - 29,027,991 31,850,784
Unrestricted 4,082,990 690,424 8,835,644 10,466,919 13,762,927 12,160,027
Total net assets $ 66,661,645 $ 63,965,113 $ 51,132,754 $ 53,039,279 $ 117,794,399 $ 117,004,392
As of the close of the current year, there is $ 844,293 in G.O. Improvement bond debt included in the Long-
term liabilities outstanding reported in the Governmental Activities that was issued to finance capital assets
reported in the Business -type Activities. This amount is not used to reduce Invested in capital assets net of
related debt in the Governmental Activities. Neither does it reduce Invested in capital assets of the Business -
type Activities. However, it does reduce the Invested in capital assets, net of related debt in the total column.
A portion of the of the City's net assets represents resources that are subject to external restrictions on how they
may be used. These restrictions include debt payment from assessments and taxes collected, and tax increments
collected for qualified projects. The remaining balance of unrestricted net assets ($ 13,762,927) may be used to
meet the City's ongoing obligations.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
assets, both for the government as a whole, as well as for its separate governmental and business -type activities.
The same was true for the prior fiscal year.
Current assets decreased in the governmental activities primarily due to the additional costs to prepare
redevelopment property for sale. In addition, the City postponed issuing debt to fund the 2009 construction
projects. Funds on hand and interfund borrowing were used to pay for the projects until the debt is issued.
13
Management's Discussion and Analysis
Capital assets increased due to new capitalized assets exceeding depreciation on existing assets for the year.
Total liabilities decreased due to the payment of principal and interest payments on bonded debt as scheduled.
The decrease in restricted net assets can be attributed to costs associated with the acquisition of redevelopment
property in excess of the estimated net realizable value of that property.
Current assets in the business -type activities decreased due to the costs associated with the project to install
auto -read meters in all properties on the City's water system. The cost of this project was approximately
$ 2,300,000 in 2009. It is expected that these current assets will be replenished with the sale of utility revenue
bonds early in the 2010 fiscal year. Total liabilities increased due to contracts payable for the relocation of a
watermain. Unrestricted net assets decreased due to the cash payments for the auto -read meter project.
Governmental Activities
Governmental activities resulted in an increase of the City's net assets by $ 2,696,532, while the increase in total
net assets was $ 790,007. Key elements of the changes are as follows:
CITY'S CHANGES IN NET ASSETS
Governmental Activities Business -type Activities Total
2009 2008 2009 2008 2009 2008
Revenues
Program revenues:
Charges for services $ 3,104,292 $ 2,801,121 $ 10,939,435 $ 11,037,648 $ 14,043,727 $ 13,838,769
Operating grants and
contributions 1,034,905 1,003,884 - - 1,034,905 1,003,884
Capital grants and
contributions 1,566,224 2,706,056 - - 1,566,224 2,706,056
General revenues:
Property taxes 12,899,250 12,458,724 - - 12,899,250 12,458,724
Other taxes 4,207,448 3,532,735 - - 4,207,448 3,532,735
Grants and contributions
not restricted to
specific programs 1,019,990 607,073 - - 1,019,990 607,073
Unrestricted investment
earnings 309,715 903,939 87,499 243,322 397,214 1,147,261
Gain on sale of assets 40,632 73,036 - - 40,632 73,036
Total revenues 24,182,456 24,086,568 11,026,934 11,280,970 35,209,390 35,367,538
Expenses:
General government 3,653,956 3,498,767 - - 3,653,956 3,498,767
Public safety 9,036,176 8,760,880 - - 9,036,176 8,760,880
Public works 2,687,980 2,596,754 - - 2,687,980 2,596,754
Community services 71,519 72,893 - - 71,519 72,893
Parks and recreation 2,773,528 2,910,825 - - 2,773,528 2,910,825
Economic development 2,151,916 3,713,340 - - 2,151,916 3,713,340
Interest on long -term debt 1,143,546 1,125,712 - - 1,143,546 1,125,712
Municipal liquor - - 1,249,946 1,125,517 1,249,946 1,125,517
Golf course - - 323,340 304,832 323,340 304,832
Earle Brown Heritage Center - - 2,363,085 2,403,676 2,363,085 2,403,676
Recycling and refuse - - 276,058 265,983 276,058 265,983
Street light utility - - 220,020 182,402 220,020 182,402
Water utility - - 3,448,819 1,783,275 3,448,819 1,783,275
Sanitary sewer utility - - 3,736,989 3,018,418 3,736,989 3,018,418
Storm drainage utility - - 1,282,505 1,162,957 1,282,505 1,162,957
Total expenses 21,518,621 22,679,171 12,900,762 10,247,060 34,419,383 32,926,231
Increase in net assets
before transfers 2,663,835 1,407,397 (1,873,828) 1,033,910 790,007 2,441,307
Transfers 32,697 (1,693,225) (32,697) 1,693,225 - -
Change in net assets 2,696,532 (285,828) (1,906,525) 2,727,135 790,007 2,441,307
Net assets - January 1 63,965,113 64,250,941 53,039,279 50,312,144 117,004,392 114,563,085
Net as sets - December 31 $ 66,661,645 $ 63,965,113 $ 51,132,754 $ 53,039,279 $ 117,794,399 $ 117,004,392
14
Management's Discussion and Analysis
In the Governmental Activities, charges for services increased due to additional activities performed by public
safety in the area of code enforcement and the registration of vacant properties within the City. Non - restricted
grants and contributions increased due to an increase in the general aid received from the State. Unrestricted
investment earnings decreased due to the sharp decline in rates earned on investments in 2009 in comparison to
those earned in 2008 and in prior years. Public safety expenses increased due to the added activities performed
in the area of code enforcement and the registration of vacant properties in the City. Economic development
expenses decreased due to the purchase of a large parcel of property for redevelopment in 2008 compared to
three smaller properties in 2009.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Governmental Activities - 2009 Revenues
Other revenues
4.4% Unrestricted investment
Other taxes earnings
1 /o
17.4% .3
Charges for services
12.8%
Operating grants and
contribtutions
= 4.3%
Capital grants and
contributions
Property taxes andtax 6.5%
increments
53.3%
Governmental Activities - 2009 Expenses
Economic development Interest on long-term
10.0% debt
5.3%
Parks and recreatio
12.9%
General government
Community services 17.0%
0.3% JL
Public works
12.5%
Public safety
42.0%
15
Management's Discussion and Analysis
Business -type activities
Business -type activities decreased net assets by $ 1,906,525. Below are graphs showing the business -type
activities revenue and expense comparisons:
Business -type Activities - 2009 Revenues
Unrestricted investment
earnings
0.8%
Net charges for services
99.2%
Business -type Activities - 2009 Expenses
Storm drainage utility
9.9% on -major enterprise
3.9%
unicip al liquor
Sanitary sewerutility 9.7%
29.0%
= Golf course
- _ — 2.5%
arle Brown Heritage
Center
18.3%
Water utility
26.7%
Water Utility and Sanitary Sewer Utility expenses increased due to the costs associated with the replacement of
the water meters in 2009.
16
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements. In particular, unreserved fund balance may serve as useful measure of a government's
net resources available at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$ 30,235,846. Approximately 29% of this amount, $ 8,724,317, is reserved (restricted in its use) because it has
already been committed to specific uses by outside influences or action of the City Council; 1) $ 4,258,770 to
provide for debt service, 2) $ 792,488 for advances to other funds, 3) $ 734,675 for committed contracts,
4) $ 500 for prepaid items, 5) $ 25,719 for inventories, and 6) $ 2,912,165 for statutory housing obligation. The
unreserved fund balance of $ 21,511,529 includes designations of 1) $ 8,502,012 for general fund working
capital, 2) $ 9,237,685 for economic development, and 3) $ 4,584,901 for capital improvements. The remaining
deficit balance of $ 813,069 is undesignated and unreserved.
The general fund is the primary operating fund of the City. At the end of the current fiscal year, total fund
balance reached $ 8,530,005, all of which was either reserved or designated. As a measure of the general fund's
liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance
represents 55% of total general fund expenditures for 2009.
The fund balance of the City's general fund increased by $ 786,567 in 2009. This increase was due to the
budget amendment adopted by the City Council in April 2009 which reduced the budget in anticipation of
reductions in intergovernmental aid provided by the State of Minnesota. The actual reductions in
intergovernmental aid were smaller than anticipated. In addition, several positions were not filled in 2009 in
anticipation of the reductions from the State.
The Tax Increment District No. 3 fund had a total fund balance of $ 8,175,431 at the end of 2009. The net
decrease in the fund balance was $ 2,706,701. This decrease was due to the expenditure of bond proceeds
received in 2008 and expenditures for demolition and utility service relocation on properties purchased by the
EDA and held for resale.
The G.O. Improvement Bonds fund had a fund balance of $ 3,054,056 at the end of 2009, all of which was
reserved for debt service. The net increase in fund balance for 2009 was $ 260,970, which was due to the
collections of assessments exceeding the scheduled bond principal and interest payments.
The Tax Increment Bonds Fund had a fund balance of $ 0 at the end of 2009. The net decrease in the fund
balance for 2009 was $ 1,195,943. This decrease was due to principal and interest payments as programmed.
The fund balance of the Infrastructure Construction fund at the end of 2009 had a deficit of $ 606,621. This
represents a decrease from the 2008 deficit of $ 276,982. This reduction is due to the City postponing the
issuance of improvement debt until 2010 to fund projects substantially complete in 2009.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
The unrestricted net assets in the respective major proprietary funds are the municipal liquor fund - $ 1,953,304,
golf course - $ (827,360), Earle Brown Heritage Center - $ 673,900, water utility - $ 1,734,532, sanitary sewer
utility - $ 2,904,658 and storm drainage utility - $ 2,464,664. The increases (decreases) in net assets for the
major enterprise funds were: municipal liquor $ 35,948, golf course $ (69,364), Earle Brown Heritage Center
$ (801,806), water utility $ (1,109,707), sanitary sewer utility $ (3 84,06 1), and storm drainage utility $ 440,475.
General Fund Budgetary Highlights
During the year, the City Council reduced the appropriations in the General Fund budget by approximately
$ 600,000. This amendment was made in anticipation of cuts in financial aids from the State in 2009. Actual
17
Management's Discussion and Analysis
revenues and other financing sources exceeded the amended budget by $ 271,152. The major contributors to
this were actual financial aids from the State exceeding the amended budget amount and an increase in charges
for services in the area of code enforcement activities. Actual expenditures and other financing uses were lower
than the amended budget for the year by $ 515,415. This resulted from several positions left unoccupied during
2009, lower than expected expenditures in the Fire Department, Street Maintenance department, and Protective
Inspection, and a conscientious effort to reduce expenditures due to the cuts in state aid.
It is anticipated that mid -term reductions of state financial aid that occurred in 2008 and 2009 will continue to
occur during the foreseeable future. This will adversely affect the operations of the General Fund requiring
reprioritization of General Fund programs and procedures. The City Council is, subsequent to the 2009 year
end reports, preparing for further reductions in state financial aid for the 2010 fiscal year.
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for governmental and business type activities as of
December 31, 2009 totals $ 82,593,481 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, infrastructure, machinery and equipment. The total increase in the City's investment
in capital assets from 2008 to 2009 was 0.8 percent (2.3 percent increase for governmental activities and a 0.1
percent decrease for business -type activities).
Major capital asset events during the year included the following:
• Two major infrastructure reconstruction projects were completed during the year, with a final cost of
$ 5,312,659.
• Two infrastructure reconstruction projects were begun and substantially completed during the 2009.
These projects account for $ 6,990,169 in construction -in- progress at the end of the year.
CITY'S CAPITAL ASSETS
(net of depreciation)
Governmental Activities Business -type Activities Total
2009 2008 2009 2008 2009 2008
Land $ 3,537,473 $ 3,537,473 $ 3,194,983 $ 3,194,983 $ 6,732,456 $ 6,732,456
Construction in progress 4,155,434 4,698,661 2,990,969 3,172,024 7,146,403 7,870,685
Land improvements - - 222,586 237,237 222,586 237,237
Other park improvements 874,595 977,549 - - 874,595 977,549
Buildings and structures 10,779,881 11,458,306 6,186,552 6,912,871 16,966,433 18,371,177
Departmental equipment 3,968,016 3,794,288 187,424 225,853 4,155,440 4,020,141
Streets 16,980,972 14,919,944 - - 16,980,972 14,919,944
Street light systems - - 77,974 83,540 77,974 83,540
Mains and lines - - 29,436,622 28,745,854 29,436,622 28,745,854
Total $ 40,296,371 $ 39,386,221 $ 42,297,110 $ 42,572,362 $ 82,593,481 $ 81,958,583
Additional information on the City's capital assets can be found in Note 4.C. on pages 55 through 56 of this
CAFR.
Long -term debt. At the end of the current fiscal year, the City had long -term bonded debt outstanding of
$ 25,3 85,000, all of which is backed by the full faith and credit of the government. Of the total outstanding
debt, $ 2,665,000 is general obligation bonds payable from directly levied property tax, $ 17,795,000 is tax
increment bonds payable with the collected proceeds of tax increment projects and $ 4,925,000 is improvement
bonds payable from special assessment levies against individual properties adjacent to the improvements.
Additional long -term liabilities include $ 1,091,553 for compensated absences, the accumulated vacation and
vested sick leave not used by employees at the end of 2009, and $ 290,426 for net OPEB obligation related to
health insurance costs paid by and for retirees.
18
Management's Discussion and Analysis
CITY'S OUTSTANDING DEBT
General Obligation Bonds, General Obligation Tax Increment Bonds,
General Obligation Improvement Bonds, Compensated Absences, and OPEB
Governmental Activities
2009 2008
General obligation bonds $ 2 0500 $ 3,275
General obligation tax increment bonds 17 20,560
General obligation improvement bonds 4,925 5
Compensated absences 1,091 1
Net OPEB obligation 290 147,045
Total $ 26 $ 30,747,998
The City's total bonded debt decreased by $ 4,140,000 during the current fiscal year due to the net result of the
scheduled payments of bond obligations.
The City maintained an Al rating from Moody's on all issues throughout the 2009 fiscal year.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated
Market Value. The current debt limitation for the City is $ 62,625,534. Only $ 1,460,286 of the City's net
outstanding debt is counted within the statutory limitation representing about 2.3 percent of the total limit.
Additional information on the City's long -term debt can be found in Note 4.F. on pages 59 through 62 of this
CAFR.
Economic Factors and Next Year's Budget and Rates
• The unemployment rate for the City is 8.6 percent at the end of the 2009 fiscal year, which is an increase
from the rate of 7.6 percent a year ago. This compares to the State's average unemployment rate of 7.4
percent and the national average of 9.7 percent.
• Redevelopment of the Opportunity Site /Central Business District and other commercial properties will
yield net growth in tax base and stability in tax base through mixed use development goals.
• Acquisition of strategic properties by the Economic Development Authority of the City will allow
redevelopment of those properties to provide both tax base growth and job growth.
• Utility rates have been projected into a rolling 15 year model to allow for funding of system
maintenance, technology changes and capital repair and replacements while moderating annual rate
adjustments.
All of these factors were considered in the preparation of the City's budget for the 2010 fiscal year.
During the year, unreserved fund balance in the general fund increased by $ 786,567. This amount will be
added to the fund balance level to stay within the City's policy of maintaining 50 to 52 percent of the ensuing
year's budgeted General Fund operations.
Water, sanitary sewer, storm, and street light utility rates were increased for the 2009 budget year. Residential
water rates were increased by 3.2 percent, sanitary sewer by 1.0 percent, storm drainage by 3.0 percent,
recycling by 3.0 percent, and street lights by 2.2 percent. These increases were necessary to ensure that the
municipal utilities be self - supporting through revenue, as required by the City charter. These rates along with
future projected rate increases are reviewed annually to ensure compliance with the requirements of the charter.
19
Management's Discussion and Analysis
Requests for information
This financial report is designed to provide a general overview of the City's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Director of Fiscal and Support Services,
City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
20
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2009
Governmental Business -Type
ASSETS Activities Activities Total
Cash and investments $ 36 $ 7 $ 44
Receivables:
Accounts 297 1 2
Taxes 661 - 661
Special assessments 3 493 4
Internal balances 1 (1 -
Due from other governments 951 2 953
Prepaid expenses 500 230 231
Inventories 52 700 753
Assets held for resale 12 - 12
Restricted assets:
Cash and investments 88 - 88
Capital assets:
Nondepreciable 7 6 13
Depreciable 32 36,111,158 68
Total assets 96 52 148
LIABILITIES
Accounts payable 514 154 669
Accrued salaries and wages 437 74 511
Due to other governments 4 71 75
Contracts payable 1 273 1
Deposits payable 1 228 230
Accrued interest payable 460 - 460
Unearned revenue 7 144 152
Liabilities payable from restricted assets:
Deposits payable 88 - 88
Compensated absences payable:
Due within one year 109 - 109
Due in more than one year 982 - 982
Net OPEB obligation:
Due in more than one year 290 - 290
Bonds payable:
Due within one year 4 - 4
Due in more than one year 21 - 21
Total liabilities 29 947 30
NET ASSETS
Invested in capital assets, net of related debt 33 42 75
Restricted for:
Debt service 6 - 6
Tax increment purposes 22 - 22
Unrestricted 4 8 13
Total net assets $ 66 $ 51 $ 117
The accompanying notes are an integral part of these financial statements.
21
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2009
Charges For
FUNCTIONS/PROGRAMS Expenses Services
Primary government:
Government activities:
General government $ 3 $ 1
Public safety 9 1
Public works 2 26
Community services 71 -
Parks and recreation 2 740
Economic development 2 445
Interest on long -term debt 1 -
Total government activities 21 3
Business -type activities:
Municipal liquor 1 1
Golf course 323 249
Earle Brown Heritage Center 2 1
Recycling and refuse 276 267
Street light utility 220 253
Water utility 3 2
Sanitary sewer utility 3 3
Storm drainage utility 1 1
Total business -type activities 12 10
Total primary government $ 34,419,3 83 $ 14
The accompanying notes are an integral part of these financial statements.
22
Statement 2
Program Revenues Net (Expense) Revenue and Changes in Net Assets
Operating Capital Primary Government
Grants and Grants and Governmental Business -Type
Contributions Contributions Activities Activities Total
$ 34 $ - $ (2 $ - $ (2
883 - (6 - (6
90 1 (1 - (1
- - (71,519) - (71,519)
26 - (2 - (2
- - (2 - (2
- - (1 - (1
1 1 (15,813,200) - (15,813,200)
- - - 280 280
- - - (73,938) (73,938)
- - - (63 7,227) (63 7,227)
- - - (8 (8
- - - 33 33
- - - (1 (1
- - - (421,263) (421,263)
- - - 295 295
- - - (1 (1
$ 1 $ 1 (15,813,200) (1 (17,774,527)
General revenues:
Property taxes 12 - 12
Tax increments 3 - 3
Lodging taxes 591 - 591
Grants and contributions not
restricted to specific programs 1 - 1
Unrestricted investment earnings 309 87 397
Gain on disposal of capital asset 40 - 40
Transfers 32 (32,697) -
Total general revenues and transfers 18 54 18
Change in net assets 2 (1 790
Net assets - beginning 63 53 117
Net assets - ending $ 66 $ 51 $ 117
The accompanying notes are an integral part of these financial statements.
23
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24
FUND FINANCIAL STATEMENTS
25
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2009
Tax Increment
General District No. 3
ASSETS
Cash and investments $ 8 $ 8
Receivables:
Accounts 74 -
Current taxes 103 21
Delinquent taxes 409 41
Special assessments 3 -
Due from other funds - -
Due from other governments 36
-
Interfund receivable - -
Prepaid items 500 -
Inventories 25 -
Advances to other funds - -
Asset held for resale - 11
Restricted assets:
Cash and investments - performance deposits 88 -
Total assets 9 20
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 198 12
Accrued salaries and wages 412 -
Due to other funds - -
Due to other governments 4 -
Contracts payable 15 32
Deposits payable 1 -
Interfund payable - -
Deferred revenue 420 11
Liabilities payable from restricted assets:
Deposits payable 88 -
Total liabilities 1 11
Fund balances:
Reserved:
Advances to other funds - -
Committed contracts 1 -
Debt service - -
Inventories 25 -
Prepaid items 500 -
Statutory housing obligation - 2
Unreserved:
Designated, reported in:
General Fund 8 -
Special Revenue Funds - 5
Capital Project Funds - -
Undesignated, reported in:
Special Revenue Funds - -
Capital Project Funds - -
Total fund balances (deficit) 8 8
Total liabilities and fund balances $ 9 $ 20
The accompanying notes are an integral part of these financial statements.
26
Statement 3
Page I of 2
G.O. Improvement Infrastructure Other Nonmajor Total
Bonds Construction Governmental Governmental
$ 3 $ - $ 9 $ 29
- 3 166 243
58 - 10 134
14 - 60 526
3 503 - 3
- 659 - 659
- - 914 951
- - 331 331
- - - 500
- - - 25
- - 792 792
- - 787 12
- - - 88
6 1 12 49
- 83 51 346
- - 12 424
- 8 595 604
- - - 4
- 949 153 1
- - - 1
- 231 100 331
3 501 847 16
- - - 88
3 1 1 19
- - 792 792
- 342 390 734
3 - 1 4
- - - 25
- - - 500
- - - 2
- - -
8
- - 3 9
- - 4 4
- - 161 161
- (949,133) (25,807) (974,940)
3 (606,621) 11 30
$ 6 $ 1 $ 12 $ 49
27
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS Page 2 of 2
December 31, 2009
Fund balance - governmental funds is different from net assets - governmental activities because:
Total fund balances (Statement 3) $ 30
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported in the funds. 36
Other long -term assets are not available to pay for current- period expenditures
and, therefore, are deferred in the funds. 16
Long -term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds. (25,845,810)
Internal service funds are used by management to charge the cost of certain
activities to individual funds. The assets and liabilities
are included in the governmental statement of net assets. 9
Net assets of governmental activities (Statement 1) $ 66
The accompanying notes are an integral part of these financial statements.
28
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29
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Tax Increment
General District No. 3
REVENUES
Property taxes $ 11 $ -
Tax increments - 2
Franchise fees - -
Lodging taxes 591 -
Special assessments 4 -
Licenses and permits 616 -
Intergovernmental 1 -
Charges for services 1,109,171 -
Fines and forfeits 340 -
Investment earnings (net of market value adjustment) 55 79
Miscellaneous 118 250
Total revenues 16 2
EXPENDITURES
Current:
General government 3 -
Public safety 8 -
Public works 1 -
Community services 71 -
Parks and recreation 2 -
Economic development 279 1
Nondepartmental 313 -
Administrative services reimbursement (859,456) -
Capital outlay:
General government - -
Public works - -
Parks and recreation - -
Economic development - 806
Debt service:
Principal retirement - -
Interest - -
Fiscal agent fees - -
Total expenditures 15 2
Revenues over (under) expenditures 770 (213,647)
OTHER FINANCING SOURCES (USES)
Transfers in 100 -
Transfers out (84,138) (2
Total other financing sources (uses) 15 (2
Net increase (decrease) in fund balances 786 (2
Fund balances - January 1 7 10
Fund balances - December 31 $ 8 $ 8
The accompanying notes are an integral part of these financial statements.
30
Statement 4
G.O. Improvement Tax Increment Infrastructure Other Nonmaj or Total
Bonds Bonds Construction Governmental Governmental
$ 299 $ - $ - $ 1 $ 12
- - - 1 3
- - - 656 656
- - - - 591
1 - 175 - 1
- - - - 616
- - - 1 2
- - - 11 1
- - - - 340
23 401 - 88 247
- - 48 203 370
1 401 223 4 24
- - - 706 3
- - - 319 8
- - 43 122 2
- - - - 71
- - - 118 2
- - - 409 2
- - - - 313
- - - - (859,456)
- - - 113 113
- - 509 1 1
- - - 34 34
- - - - 806
765 2 - 915 4
166 922 - 93 1
10 1 - 3 15
942 3 553 4 27
254 (3 (329,639) 344 (2
6 2 - 1 3
- - - (504,619) (3
6 2 - 527 550
260 (1 (329,639) 872 (2
2 1 (276,982) 10,210,113 32
$ 3 $ - $ (606,621) $ 11 $ 30
31
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32
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES Statement 5
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2009
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 4) $ (2
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlays exceeded depreciation
in the current period. 708
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds. 209
The issuance of long -term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long -term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any effect on net assets. This amount is the net effect of these differences in the treatment
of long -term debt and related items. 4
Internal service funds are used by management to charge the cost of certain activities to
individual funds. This amount is net revenue attributable to governmental activities. (105,026)
Accrued interest reported in the statement of activities does not require the use of current financial
resources and, therefore, is not reported as expenditures in governmental funds. 55
Change in net assets of governmental activities (Statement 2) $ 2
The accompanying notes are an integral part of these financial statements.
33
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
December 31, 2009
Major
Municipal Golf Earle Brown
Liquor Course Heritage Center
ASSETS
Current assets:
Cash and cash equivalents $ 1 $ - $ 767
Receivables:
Accounts - net 7 - 316
Special assessments - - -
Due from other funds - - -
Due from other governments - - -
Interfund receivable - - -
Prepaid items 26 - 29
Inventories 635 1 29
Total current assets 2 1 1
Noncurrent assets:
Capital assets:
Land - 1 1
Land improvements - 65 327
Buildings and structures 192 487 11
Machinery and equipment 111 11 293
Street lights - - -
Mains and lines - - -
Construction in progress - - -
Less: Allowance for depreciation (282,090) (322,473) (7
Net capital assets 21 1 5
Total assets 2 1 7
LIABILITIES
Current liabilities:
Accounts payable 60 882 40
Accrued salaries payable 21 2 27
Due to other funds - - -
Due to other governments 53 - 16
Contracts payable 4 - 155
Deposits payable - - 227
Interfund payable - 33 -
Unearned revenue 837 - 1
Advances from other funds - 792 -
Compensated absences payable - current - - -
Total current liabilities 140 829 468
Noncurrent liabilities:
Compensated absences payable- long -term - - -
Net OPEB obligation - - -
Total noncurrent liabilities - - -
Total liabilities 140 829 468
NET ASSETS
Invested in capital assets 21 1 5
Unrestricted 1 (827,360) 673
Total net assets $ 1 $ 805 $ 6
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net assets of business -type activities
The accompanying notes are an integral part of these financial statements.
34
Statement 6
Business -Type Activities Governmental
Enterprise Other Activities -
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal Total
Utility Utility Utility Enterprise Enterprise Service Proprietary
$ 1 $ 1 $ 2 $ 117 $ 7 $ 6 $ 14
337 794 362 111 1 54 1
492 1 231 - 493 - 493
8 - - - 8 - 8
2 - - - 2 - 2
- - 14 - 14 33 47
500 173 - - 230 - 230
33 - - - 700 26 727
2 2 2 229 10 6 17
20 3 287 - 3 - 3
- - - - 393 166 559
3 2 - - 17 - 17
128 179 - - 724 7 8
- - - 83 83 - 83
17 15 21 - 54 - 54
838 492 1 332 2 - 2
(12,269,982) (9 (7 (5 (37,297,548) (3 (41,280,427)
8 9 15 410 42 3 46
10 12,416,911 18 640 53 10 63
22 11 1 17 154 168 323
13 7 3 - 74 12 87
- 13 50 - 64 - 64
1 - - - 71 - 71
107 5 - - 273 - 273
700 - - - 228 - 228
- - - 14 47 - 47
142 - - - 144 - 144
- - - - 792 - 792
- - - - - 109 109
288 37 56 31 1 289 2
- - - - - 982 982
- - - - - 290 290
- - - - - 1 1
288 37 56 31 1 1 3
8 9 15 410 42 3 46
1 2 2 197 9 5 14
$ 10 $ 12 $ 18 $ 608 51 $ 8 $ 60
(265,869)
$ 51
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2009
Major
Municipal Golf Earle Brown
Liquor Course Heritage Center
OPERATING REVENUES
Sales and user fees $ 5 $ 249 $ 3
Cost of sales 4 - 1
Total operating revenues 1 249 1
OPERATING EXPENSES
Personal services 634 152 926
Supplies 34 18 109
Other services 230 90 477
Insurance 10 7 47
Utilities 37 21 166
Rent 269 - -
Depreciation 26 28 624
Total operating expenses 1 318 2
Operating income (loss) 277 (69,537) (626,928)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - -
Investment earnings 15 81 10
Special assessments - - -
Gain (loss) on sale of capital asset - - -
Other revenue 8 92 646
Total nonoperating revenues (expenses) 23 173 11
Income (loss) before contributions and transfers 301 (69,364) (615,322)
Capital contributions - - 113
Transfers in - - -
Transfers out (265,490) - (300,000)
Change in net assets 35 (69,364) (801,806)
Net assets - January 1 1 874 7
Net assets - December 31 $ 1 $ 805 $ 6
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business -type activities (Statement 2)
The accompanying notes are an integral part of these financial statements.
36
Statement 7
Business -Type Activities Governmental
Enterprise Other Activities -
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal Total
Utility Utility Utility Enterprise Enterprise Service Proprietary
$ 1 $ 3 $ 1 $ 521 $ 16 $ 1 $ 18
- - - - 5 - 5
1 3 1 521 10 1 12
421 161 66 - 2 752 3
161 8 10 900 343 363 706
2 2 341 314 6 131 6
17 4 2 2 92 44 137
149 33 - 172 580 1 582
- - - - 269 - 269
596 550 858 5 2 654 3
3 3 1 496 12 1 14
(1 (410,106) 299 24 (1 (312,899) (2
- - - - - 15 15
7 25 26 1 87 62 149
42 129 - - 42 - 42
- - - - - 40 40
2 - 200 - 11 26 38
53 26 26 1 142 145 287
(1 (384,061) 326 26 (1 (167,543) (1
301 - 114 3 532 - 532
- - - - - 15 15
- - - - (565,490) - (565,490)
(1 (384,061) 440 29 (1 (152,255) (2
11 12 17 579 53 9 62
$ 10 $ 12 $ 18 $ 608 $ 8 $ 60
(47,229)
$ (1
37
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2009
Major
Municipal Golf Earle Brown
Liquor Course Heritage Center
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 5 $ 249 $ 3
Receipts from interfund services provided - - -
Payments to suppliers (4 (139,088) (2
Payments to employees (632,532) (152,462) (924,935)
Miscellaneous revenue 8 92 646
Net cash flows provided (used) by operating activities 221 (42,148) (97,286)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - - -
Transfers out (265,490) - (300,000)
Special assessments - - -
Interfund receivable 135 - -
Interfund payable - 33
Net cash flows provided (used) by noncapital financing activities (130,490) 33 (300,000)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets - - -
Proceeds from sale of assets - - Net cash flows provided (used) by capital and related financing activities - - -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 15 81 10
Net increase (decrease) in cash and cash equivalents 106 (8 (386,326)
Cash and cash equivalents - January 1 1 8 1
Cash and cash equivalents - December 31 $ 1 $ - $ 767
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) $ 277 $ (69,537) $ (626,928)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 26 28 624
Changes in assets and liabilities:
(Increase) decrease in receivables - - (54,111)
(Increase) decrease in inventories (40,730) 224 1
(Increase) decrease in prepaid expenses (3 - (24,708)
Increase (decrease) in payables (49,472) (1 (19,779)
Increase (decrease) in accrued expenses 2 331 1
Increase (decrease) in deferred revenue 323 - -
Other nonoperating income 8 92 646
Total adjustments (56,363) 27 529
Net cash flows provided (used) by operating activities $ 221 $ (42,148) $ (97,286)
Noncash financing activities:
Capital contributions $ - $ - $ 113
Gain on sale of assets - - -
The accompanying notes are an integral part of these financial statements.
38
Statement 8
Business -Type Activities Governmental
Enterprise Other Activities -
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal Total
Utility Utility Utility Enterprise Enterprise Service Proprietary
$ 2 $ 3 $ 1 $ 521 $ 16 $ - $ 16
- - - - - 1 1
(2 (3 (353,363) (487,719) (13,752,065) (405,560) (14,157,625)
(421,914) (159,177) (64,796) - (2 (591,840) (2
2 - 200 - 11 42 54
(592,943) 170 1 33 854 641 1
- - - - - 15 15
- - - - (565,490) - (565,490)
110 390 - - 111 - 111
(8 - (9 - 116 (33,422) 82
- 13 50 9 107 - 107
101 13 40 9 (230,584) (18,134) (248,718)
(437,423) (428,648) (1 - (1 (911,922) (2
- - - - - 97 97
(437,423) (428 (1 - (1 (814,722) (2
7 25 26 1 87 62 149
(920,568) (218,836) 213 44 (1 (128,609) (1
2 2 1 72 8 6 15
$ 1 $ 1 $ 2 $ 117 $ 7 $ 6 $ 14
$ (1 $ (410,106) $ 299 $ 24 $ (1 $ (312,899) $ (2
596 550 858 5 2 654 3
153 25 1 256 127 (39,242) 87
(26,949) - - - (66,103) (1 (67,746)
- (10,229) - - (38,388) - (38,388)
113 12 284 2 57 137 195
61 2 1 - 8 161 170
32 - - - 33 - 33
2 - 200 - 11 42 54
871 580 861 8 2 954 3
$ (592,943) $ 170 $ 1 $ 33 $ 854 $ 641 $ 1
$ 301 $ - $ 114 $ 3 $ -
- - - - 40
39
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40
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
The City of Brooklyn Center was incorporated in 1911 and has operated under a Council /Manager form of
government since the adoption of the City charter in 1966. The governing body consists of a mayor and four
City Council members elected at -large to serve four -year staggered terms. The City provides a full range of
municipal services to its citizens, including public safety (police and fire protection), highways and streets,
parks and recreation, public improvements, planning and inspections, economic development, sanitary and
storm sewer, water, and general administrative services.
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City have been prepared in accordance with accounting principles generally
accepted in the United States of America (GAAP), as applied to governmental units by the Governmental
Accounting Standards Board (GASB). The City also applies Financial Accounting Standards Board (FASB)
statements and interpretations issued prior to December 1, 1989 to its governmental and business -type activities
at the government -wide financial reporting level and to its proprietary funds at the fund reporting level,
provided they do not conflict with or contradict GASB pronouncements.
The City's significant accounting policies are described below.
A. REPORTING ENTITY
The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are
not legally separate from the City. Component units are legally separate organizations for which the
elected officials of the City are financially accountable and are included within the basic financial
statements of the City because of the significance of their operational or financial relationships with the
City.
The City is considered financially accountable for a component unit if it appoints a voting majority of the
organization's governing body and is able to impose its will on the organization by significantly
influencing the programs, projects, activities, or level of services performed or provided by the
organization, or there is a potential for the organization to provide specific financial benefits to, or impose
specific financial burdens on, the City.
Blended component units, although legally separate, are, in substance, part of the government's operations.
A blended component unit is reported as if it were a fund of the City throughout the year. It is included at
both the government -wide and fund financial reporting levels.
A description of the City's blended component units follows:
City of Brooklyn Center Housing and Redevelopment Authority (HRA) - The City Council serves as the
Board of Directors for the HRA. The Council reviews and approves the tax levy and all expenditures for
the HRA. The HRA is reported as a Special Revenue Fund. The HRA does not issue separate financial
statements. Financial information may be obtained at the City's offices.
City of Brooklyn Center Economic Development Authority (EDA) — The governing board for the EDA is
the City Council. The council reviews and approves major community development improvement
activities. City general obligation tax increment financing bonds are issued to finance EDA activities. The
EDA is reported in the Economic Development Authority, Earle Brown TIF District, TIF District No. 3,
TIF District No. 4, and the Community Development Block Grant Special Revenue Funds; the Tax
Increment Bonds Debt Service Fund; the Earle Brown Heritage Center Improvements Capital Project Fund;
and the Earle Brown Heritage Center Enterprise Fund. The EDA does not issue separate financial
statements. Financial information may be obtained at the City's offices.
41
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net assets and the statement of changes in
net assets) report information on all activities of the primary government and its component units.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business -type activities, which rely to a significant extent on fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
business -type activity and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or business -type activity. Taxes and other items not included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes and special assessments are recognized as revenues in the year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
government.
42
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (Continued)
The government reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Tax Increment District No. 3 Special Revenue 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 were issued for the same purpose.
The G. O. Improvement Bonds Debt Service Fund is used to account for the accumulation of resources
for the payment of improvement bonds. These bonds were sold to finance certain public
improvements such as residential streets and storm sewers or the provision of services which are to be
paid for wholly or in part from special assessments levied against benefited property.
The Tax Increment Bonds Debt Service Fund is used to account for the payment of tax increment
financing bonds. These bonds were sold to finance the purchase and redevelopment of various
redevelopment projects within the City.
The Infrastructure Construction Capital Project Fund was established to account for the resources and
expenditures required for the acquisition and construction of capital facilities or improvements
financed wholly or in part by special assessments levied against benefited properties.
The government reports the following major enterprise funds:
The Municipal Liquor Fund accounts for the operations of the City's municipal off -sale liquor stores.
The Golf Course Fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf
course owned by the City.
The Earle Brown Heritage Center Fund accounts for the operation of a convention center. The Earle
Brown Heritage Center is a pioneer farmstead that has been historically preserved and restored as a
modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts.
The Water Utility Fund accounts for the pumping, treatment and distribution of water to customers.
Administration, wells, water storage, and distribution are included.
The Sanitary Sewer Utility 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 52% of this fund's expenses.
The Storm Drainage Utility Fund accounts for the collection and treatment of surface runoff water that
does not require sanitary wastewater treatment. It incorporates not only the storm sewer collection
system, but also structures such as holding ponds and facilities to improve water quality. Fees are
based upon the quantity of water running off a property and vary with both size and absorption
characteristics of the parcel.
43
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (Continued)
Additionally, the government reports the following fund type:
Internal Service Funds account for compensated absences, health care insurance benefits and central
garage services provided to other departments of the City on a cost reimbursement basis.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved external organizations, such as buying goods and services or payments in lieu
of taxes. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
enterprise funds and internal service funds are charges to customers for sales and services. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
D. CASH AND INVESTMENTS
The City considers all highly liquid investments with a maturity of three months or less when purchased to
be cash equivalents. All of the cash and investments allocated to the proprietary funds have original
maturities of 90 days or less.
44
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. CASH AND INVESTMENTS (Continued)
The City's investment policy authorizes the City to invest in the following:
a) Securities which are direct obligations or are guaranteed or insured issues of the United States, its
agencies, its instrumentalities, or organizations created by an act of Congress, including governmental
bonds, notes, bills, mortgages (excluding high -risk mortgage- backed securities), and other securities.
b) State and local securities:
1) Any security which is a general obligation of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service.
2) Any security which is a revenue obligation of any state or local government with taxing powers
which is rated "AA" or better by a national bond rating agency.
3) A general obligation of the Minnesota housing finance agency which is a moral obligation of the
state of Minnesota and is rated "A" or better by a national bond rating agency.
c) Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the
highest quality by at least two nationally recognized rating agencies and matures in 270 days or less.
d) Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers
acceptances of U.S. banks.
e) Repurchase agreements and reverse repurchase agreements with financial institutions identified by
Minnesota Statutes Chapter 118A.
f) Securities lending agreements may be entered into with financial institutions identified by Minnesota
Statutes Chapter 118A.
g) Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota
Statutes Chapter 118A
h) Money market mutual funds regulated by the Securities and Exchange Commission and whose
portfolios consist only of short term securities permitted by Minnesota Statutes 118A.
i) Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price,
which may include a premium, prior to maturing using surplus funds of the debt service fund set up for
that issue.
Investments are reported at fair value, based on quoted market prices as of the balance sheet date.
Adjustments necessary to record investments at fair value are recorded in the operating statement as
increases or decreases in investment earnings. Investment income on commingled funds is allocated
monthly, based on month -end balances.
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. Short -term interfund loans are classified as "interfund receivable /payable." All short -
term interfund receivables and payables at December 31, 2009 are planned to be eliminated in 2010. Long-
term interfund loans are classified as "advances to /from other funds." Any residual balances outstanding
between the governmental activities and business -type activities are reported in the government -wide
financial statements as "internal balances."
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable financial resources.
45
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
E. RECEIVABLES AND PAYABLES (Continued)
All miscellaneous accounts receivable and trade receivables, other than utility, are presented net of an
allowance for doubtful accounts. All utility trade receivables are reported at gross because it is the City's
policy to certify delinquent account balances as special assessments. The City expects to make full
collection of all property tax and special assessment receivables, so no allowance is considered necessary.
Property tax levies are submitted to the County in December each year. The County allocates these levies
across taxable properties in the City based on valuations certified in the prior year. The County collects
these levies and distributes the City's proceeds in June and December of the fiscal year. These taxes are
reported as general revenues in the government -wide financial statements in the year levied. Unpaid taxes
at December 31 become liens on the respective property and are classified as delinquent receivables and are
fully offset by deferred revenue in the fund financial statements.
F. INVENTORIES AND PREPAID ITEMS
Inventories in the governmental funds are reported using the consumption method and valued at cost, using
the first in/first out (FIFO) method. Inventories in the proprietary funds are valued at cost, using the
weighted average method in the Municipal Liquor and Earle Brown Heritage Center Funds and the FIFO
method in all other funds.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government -wide and fund financial statements.
G. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost in excess of the amounts in the table below and an estimated useful
life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of
donation.
Infrastructure $ 25000
Buildings and Building Improvements 5000
Land Improvements 2500
Heavy Equipment 2500
Furniture and furnishings 1000
Motorized vehicles 1000
Technology equipment 1000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of the
capitalized value of the assets constructed. For the year ended December 31, 2009 no interest was
capitalized in connection with construction in progress.
46
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
G. CAPITAL ASSETS (Continued)
Capital assets of the City, as well as the component units, are depreciated using the straight line method
over the following estimated useful lives:
Land improvements 25 years
Buildings and structures 25 years
Water and sewer mains and lines, wells and storage
tanks, sewer lift stations 25 years
Infrastructure 25 years
Street and traffic light systems 15 years
Machinery and equipment 5 -15 years
H. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation and vested sick leave pay is accrued in the Public Employees Compensated Absences fund. A
liability for these amounts is reported in governmental funds only if they have matured, for example, as a
result of employee resignations and retirements. In accordance with the provisions of Statement of
Government Accounting Standards No. 16, Accounting for Compensated Absences, a liability is recognized
for that portion of accumulating sick leave benefits that is vested, or expected to vest, as severance pay.
I. LONG TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long -term debt and other long -term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
J. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net
assets for proprietary funds. Fund equity in the government -wide financial statements is classified as net
assets for both governmental and business -type activities.
Fund balance — Generally, fund balance represents the difference between current assets and current
liabilities. The City reserves those portions of fund balance which are legally segregated for a specific
future use or which do not represent available, spendable resources and are therefore not available for
general appropriation or expenditure. Unreserved fund balance indicates that portion of fund balance that
is available for appropriation in future periods. Designations are management's intent to set aside these
resources for specific purposes.
47
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
J. FUND EQUITY (Continued)
Net assets — Net assets represent the difference between assets and liabilities. Net assets, invested in capital
assets net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any bonds used for the acquisition, construction, or improvement of those assets.
Net assets are reported as restricted when there are limitations imposed on their use either through
constitutional provisions or enabling legislation, or through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments. All other net assets are reported as unrestricted.
When both restricted and unrestricted resources are available for an allowable use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
K. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues and expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and
as reductions of expenditures /expenses in the fund that is reimbursed. All other interfund transactions are
reported as transfers.
L. USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual
results could differ from such estimates.
M. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) recently approved the following statements which
were not implemented in these financial statements. The effect of these standards may have on future
financial statements has not been determined at this time.
Statement No. 51, Accounts and Financial Reporting for Intangible Assets. This statement establishes
accounting and financial reporting requirements for intangible assets including easements, water rights,
timber rights, patents, trademarks and computer software. The provisions of this statement are effective for
financial statements for periods beginning after June 15, 2009.
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This statement
establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a
government is bound to observe constraints imposed upon the use of the resources reported in
governmental funds and clarifies the existing governmental fund type descriptions. The provisions of this
statement are effective for periods beginning after June 20, 2010.
48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance — total governmental
funds and net assets — governmental activities as reported in the government -wide statement of net assets.
One element of that reconciliation explains that "Long -term liabilities, including bonds payable, are not due
and payable in the current period and therefore are not reported in the funds." The details of this
$ 25,845,810 difference are as follows:
Bonds payable $ 25
Accrued interest payable 460,810
Net adjustment to decrease fund balance - total governmental
funds to arrive at net assets - governmental activities $ 25,845,810
Another element of that reconciliation explains that "Internal service funds are used by management to
charge the costs of certain activities to individual funds. The assets and liabilities are included in the
governmental statement of net assets." The details of this $ 9,248,473 difference are as follows:
Net assets of internal service funds $ 8
Plus: Internal receivable representing charges in excess of
cost to business -type activities -prior years 218,640
Plus: Internal reeivable representing charges in excess of
cost to business -type activities - current year 47,229
Net adjustment to decrease fund balance - total governmental
funds to arrive at net assets - governmental activities $ 9
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances — total governmental funds and changes in net assets
of governmental activities as reported in the government -wide statement of activities. One element of that
reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense." The details of this $ 708,856 difference are as follows:
Capital outlay $ 2
Net transfers to proprietary funds (532,793)
Depreciation expense (1,579,112)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities $ 708,856
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 2 RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES (Continued)
Another element of that reconciliation states that "Revenues in the Statement of Activities that do not
provide current financial resources are not reported as revenues in the funds." The details of this
$ 209,402 difference are as follows:
General property taxes deferred revenue:
At December 31, 2008 $ (482,321)
At December 31, 2009 484,569
Tax increment taxes deferred revenue:
At December 31, 2008 (27,320)
At December 31, 2009 41,730
Special assessments deferred revenue:
At December 31, 2008 (4,158,572)
At December 31, 2009 3,622,416
Other deferred revenues:
At December 31, 2008 (11,805,629)
At December 31, 2009 12,534,529
Net adjustments to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities $ 209,402
Another element of that reconciliation states that "The issuance of long -term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of principal of the long-
term debt consumes the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets." The details of this $ 4,140,000 difference are as follows:
Principal repayments:
General obligation bonds $ 61000
General obligation improvement bonds 76500
General obligation tax increment bonds 2,765
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net assets
of governmental activities $ 4,140
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States for all governmental funds, except for the Police Drug Forfeiture and Capital Reserve
Emergency Funds. All annual appropriations lapse at fiscal year end.
In August, the City Manager submits to the City Council proposed operating budgets for the fiscal year
commencing the following January. The proposed general fund budget and preliminary tax levy must be
certified to the County prior to September 15. The Council holds public hearings on the certified budget
and levy and must submit a final levy to the County prior to the end of December.
The appropriated budget is prepared by fund and department. The City Council must authorize any transfer
of budgeted amounts between departments or funds. Transfers of budgeted amounts within departments in
the General Fund must be authorized by the City Manager. The legal level of budgetary control is the
department level for the General Fund and the fund level for all other governmental funds. There were no
material supplemental budgetary appropriations during the year, however, reductions in appropriations
were made by the City Council in April 2009 in anticipation of reductions in intergovernmental aids from
the State of Minnesota.
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2009 expenditures exceeded appropriations in the following General
Fund departments and special revenue funds:
Final Over
Budget Actual Budget
Major Funds :
General Fund:
Administrative $ 689,302 $ 693,183 $ (3,881)
Finance 405,138 409 (4,835)
Legal 37500 388 (13,772)
Government buildings 765,071 826 (61,648)
Police protection 6425,868 6,508 (82,274)
Engineering 570,916 628 (57,665)
Social services 70,819 71,519 (700)
Parks and recreation administration 186,293 193 (6,967)
Recreation programs 691,161 705 (14,510)
Special Revenue Funds:
Tax Increment District No. 3 23500 2 (2
Debt Service Funds:
G.O. Improvement Bonds 891452 942 (50,596)
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS (Continued)
Final Over
Budget Actual Budget
Nonmajor Funds:
Special Revenue Funds:
Economic Development Authority 363,367 396,658 (33,291)
Tax Increment District No. 4 286,484 308,204 (21,720)
Debt Service Funds:
General Obligation Bonds 705 707,284 (1,881)
Capital Project Funds:
Capital Improvements 390 491479 (101,479)
Municipal State Aid for Construction 125 830,058 (704,658)
C. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2009 in the following funds:
Unreserved deficit fund balance
Major Funds:
Infrastructure Construction $ 949,133
Nonmajor Funds:
Capital Improvements 25
Unrestricted deficit net assets
Major Funds:
Golf Course 827,360
The deficits are being funded through internal borrowing and will be repaid from construction transfers
from utility funds, future bond issuance, investment earnings, and internal transfers.
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks
authorized by the City Council. All such depositories are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Authorized collateral includes the legal investments described in Note 1.D., as well as certain first
mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that
securities pledged as collateral be placed in safekeeping in a restricted account at the Federal Reserve bank,
or in an account at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral.
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS (Continued)
At year -end, the City's carrying value amount of deposits was $ (284,397) composed of bank balances of
$0.
As of December 31, 2009 the City had the following investments and maturities:
Investment
Maturities
Less than No
Investment Type Rating Fair Value 1 year 1 -5 maturity
Federal Home Loan Bank Notes AAA $ 3,522,267 $ - $ 3 $ -
Negotiable Certificates of Deposit N/A 1,872,752 1,771 101 -
External investment pool - 4M Fund N/A 29,152,042 - - 29,152,042
Money market AAA 9,812,446 - - 9,812,446
Total investments 44,359,507 $ 1,771,518 $ 3,623,501 $ 38,964,488
Deposits (284,397)
Petty cash and change funds 13
Total cash and investments $ 4408
Reconciliation to Statement of Net Assets (Statement 1):
Cash, cash equivalents, and investments 44
Restricted cash and investments 88
Total cash and investments $ 4408,645
N/A -not rated
Interest rate risk — The City's investment policy requires interest earnings remain stable and predictable
through at least the next budget cycle and that at least 50% of the investment portfolio remain for two or
more years with known interest rates. The policy also states that the portfolio shall remain sufficiently
liquid to meet all operating requirements that may be reasonably expected.
Credit risk — The City's investment policy restricts investment instruments to those authorized by
Minnesota Statutes § 118A. The policy also requires that any counterparty in investment transactions be
pre - qualified and approved by the City Council and that the portfolio be diversified to limit potential losses
on individual securities. As of December 31, 2009 the City's investment in FHLB notes were all rated
AAA by Moody's Investor Service. The City's external investment pool is with 4M which is regulated by
Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is an
unrated 2a7 -like pool and the fair value of the position in the pool is the same as the value of the pool
shares.
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS (Continued)
Concentration of credit risk — The City's investment policy requires that the investment portfolio be
diversified to minimize potential losses on individual securities.
Custodial credit risk — The City's investment policy requires that securities purchased from any bank or
dealer be placed with an independent third party for custodial safekeeping. All of the City's investments
were held in an institutional trust under contract with the City for safekeeping services.
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2009 are as
follows:
Major Funds
Tax Increment G.O. Sanitary Storm
District Improvement Infrastructure Water Sewer Drainage Nonmajor
General No.3 Bonds Construction Utility Utility Utility Funds Total
Delinquent property taxes $ 102,375 $ - $ 3,570 $ - $ - $ - $ - $ 15,210 $ 121,155
Delinquent taxincrements - 10,435 - - - - - - 10,435
Special assessments 221 - 2,628,647 428,681 140,760 1,302 231 - 3,199,842
$ 102,596 $ 10,435 $ 2,632,217 $ 428,681 $ 140,760 $ 1,302 $ 231 $ 15,210 $ 3,331,432
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end of
the current fiscal year, the various components of deferred revenue and unearned revenue reported in the
governmental funds were as follows:
Unavailable Unearned Totals
Delinquent property taxes receivable (General Fund) $ 409,492 $ - $ 409,492
Delinquent property taxes receivable (G. O. Improvement Bonds) 14 - 14
Delinquent property taxes receivable (Nonmajor Funds) 60 - 60
Delinquent taxincrement receivable (Tax Increment District No. 3) 41 - 41
Special assessments not yet due (General Fund) 3 - 3
Special assessments not yet due (G. O. Improvement Bonds) 3 - 3
Special assessments not yet due (Infrastructure Construction) 501,130 - 501
Fees received but unearned (General Fund) - 7 7,594
Assets held for resale (Tax Increment District No. 3) 11 - 11,747,529
Assets held for resale (Nonmajor Funds) 78700 - 78700
Total deferred /unearned revenue for governmental funds $ 16 $ 7,594 $ 16
The City has leased a portion of the police second floor expansion area to the Local Government
Information Systems Association (LOGIS) as a backup computer facility. The lease has a term of six
years, commencing on August 1, 2005, and calls for monthly lease payments based on the square- footage.
Lease revenue for the year ended December 31, 2009 was $ 9,071. Future minimum lease payments are as
$ 9,091 annually for 2010 and $ 5,303 for 2011.
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2009 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets, not being depreciated:
Land $ 3,537,473 $ - $ - $ 3,537,473
Construction in progress 4,698,661 2,287,968 (2,831,195) 4,155,434
Total capital assets, not being depreciated 8,236,134 2,287,968 (2,831,195) 7,692,907
Capital assets, being depreciated:
Buildings and improvements 19,410,596 - - 19,410,596
Park improvements 4,498,492 - (85,551) 4,412,941
Departmental equipment 7,811,865 935,168 (550,648) 8,196,385
Streets 25,187,639 2,831,195 - 28,018,834
Total capital assets, being depreciated 56,908,592 3,766,363 (636,199) 60,038,756
Less accumulated depreciation for:
Buildings and improvements 7,952,290 678,425 - 8,630,715
Park improvements 3,520,943 102,954 (85,551) 3,538,346
Departmental equipment 4,017,577 704,872 (494,080) 4,228,369
Streets 10,267,695 770,167 - 11,037,862
Total accumulated depreciation 25,758,505 2,256,418 (579,631) 27,435,292
Total capital assets being depreciated -net 31,150,087 1,509,945 (56,568) 32,603,464
Governmental activities capital assets -net $ 39,386,221 $ 3,797,913 $ (2,887,763) $ 40,296,371
Beginning Ending
Balance Increases Decreases Balance
Business -type activities:
Capital assets, not being depreciated:
Land $ 3,194,983 $ - $ - $ 3,194,983
Construction in progress 3,172,024 2,300,409 (2,481,464) 2,990,969
Total capital assets, not being depreciated 6,367,007 2,300,409 (2,481,464) 6,185,952
Capital assets, being depreciated:
Land improvements 393,467 - - 393,467
Buildings and improvements 17,686,553 113,516 - 17,800,069
Department equipment 724,003 - - 724,003
Street light systems 83,540 - - 83,540
Mains and lines 51,926,163 2,481,464 - 54,407,627
Total capital assets, being depreciated 70,813,726 2,594,980 - 73,408,706
Less accumulated depreciation for:
Land improvements 156,230 14,651 - 170,881
Buildings and improvements 10,773,682 839,835 - 11,613,517
Department equipment 498,150 38,429 - 536,579
Street light systems - 5,566 - 5,566
Mains and lines 23,180,309 1,790,696 - 24,971,005
Total accumulated depreciation 34,608,371 2,689,177 - 37,297,548
Total capital assets being depreciated -net 36,205,355 (94,197) - 36,111,158
Business -type activities capital assets - net $ 42,572,362 $ 2,206,212 $ (2,481,464) $ 42,297,110
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
C. CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government $ 91,559
Public safety 3 86,3 50
Public works 864
Parks and recreation 260
Capital assets held by the governments internal service funds are
charged to the various functions based on their usage of the assets 654,060
Total depreciation expense - governmental activities $ 2,256418
Business -type activities:
Municipal liquor $ 26,359
Go if course 28
Earle Brown Heritage Center 624,329
Water utility 596,180
Sanitary sewer utility 550
Storm drainage utility 858
Street light utility 5,566
Total depreciation expense - business -type activities $ 2,689,177
CONSTRUCTION COMMITMENTS
At December 31, 2009 the City had construction project contracts in progress. The commitments related to
remaining contract balances are summarized as follows:
Contract Remaining
Project Responsible Fund Amount Commitment
Trail rehabilitation General Fund $ 24,566 $ 1,774
Xerxes Avenue and Northway Drive Infrastructure Construction 2,303,330 82,527
Aldrich Neighborhood Infrastructure Construction 2,491,467 36,862
Shingle Creek /69th Ave Improvements Infrastructure Construction 814,158 223,123
Central Park Trails Nonmajor Capital Projects Fund 139,717 IM386
Capital building maintenance for 2009 Nonmajor Capital Projects Fund 202,900 150,694
Telephone and voicemail system Nonmajor Capital Projects Fund 223,200 121,309
Total governmental funds 6 734,675
Centerbrook Watermain Water Utility Fund 109,036 2,033
Total all funds $ 6 $ 736,708
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
D. INTERFUND BALANCES AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2009 are as follows:
Due from Due to
Fund Other Funds Other Funds
Major Funds:
Infrastructure Construction $ 659,794 $ 8
Water Utility 074 -
Sanitary Sewer Utility - 13
Storm Drainage Utility - 50
Nonmajor Funds:
Street Reconstruction - 59505
Total $ 668468 $ 668468
The $ 668,468 between these funds is expected to be eliminated within one year of December 31, 2009.
Advances to Advances From
Fund Other Funds Other Funds
Major Funds:
Go If Course $ - $ 792488
Nonmajor Funds:
Capital Improvements 792,488 -
$ 792 $ 792488
The $792,488 advance between the Golf Course and Capital Improvements funds is not expected to be
eliminated within one year of December 31, 2009.
Interfund Interfund
Fund Receivable Payable
Major Funds:
Infrastructure Construction $ - $ 231,615
Go if Course - 33
Storm Drainage Utility 14,337 -
Nonmajor Funds:
Economic Development Authority 10000 -
Community Development Block Grant - 10000
Street Reconstruction 231,615 -
Recycling and Refuse - 14
Central Garage 33422 -
$ 379,374 $ 379
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS (Continued)
Interfund payables /receivables are representative of lending /borrowing arrangements to cover deficit cash
balances at the end of the fiscal year. Balance will be paid with transfers from other funds, collections of
outstanding receivables, and the issuance of bonds to finance completed infrastructure projects.
Interfund transfers:
Transfer In Transfer Out
Governmental Funds:
Major Funds:
General $ 100 $ 84
Tax Increment District No. 3 - 2
GO Improvement Bonds 6,349 -
Tax Increment Bonds 2493,054 -
Nonmajor Funds:
Housing and Redevelopment Authority - 382,325
Economic Development Authority 382,325 657
Earle Brown Tax Increment District 657 -
Community Development Block Grant - 10000
City Initiatives Grant 500 15,288
Capital Improvements 274,628 -
Earle Brown Heritage Center Improvements 30000 -
Street Reconstruction - 6
Technology 70 -
Total govenmental funds 3 3
Proprietary Funds:
Major Funds:
Municipal Liquor - 265
Earle Brown Heritage Center - 300
Nonmajor Funds:
Central Garage 15 -
Total proprietary funds 15 565
Total all funds $ 3 $ 3
Governmental Business -Type
Activities Activities
Reconciliation to Government -Wide Statement of Activities:
Net Transfers -Fund Statements $ 550,202 $ (550,202)
Internal Service Fund Transfer 15,288 (15,288)
Capital Asset Transfers (532,793) 532,793
Total Transfers - Government -Wide Statement of Activities $ 32 $ (32,697)
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS (Continued)
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund or to provide additional capital and infrastructure funding. In addition,
interfund transfers are occasionally authorized to allow redistribution of resources between funds for the
most efficient use of funds. In 2009, the transfer from the General fund to the City Initiatives Grant fund is
to provide the funding authorized by the City Council for the Centennial Celebration to be held in 2011.
Transfers from the Tax Increment District No. 3 fund to the Tax Increment Bonds fund were made to pay
the 2009 debt service requirements for the bonds. The transfer from the Community Development Block
Grant fund to the General fund was made to transfer federal grant money received to pay for housing
inspection and code enforcement costs.
E. OPERATING LEASES
The City leases space for its municipal liquor stores. The leases are ten -year leases and began in 2000 and
2003, and have options for a ten -year extension. In January 2009, the City amended the lease that began in
2000 to include additional space to be used for warehouse storage. The leases provide for a minimum
monthly base rent payment, plus a pro -rata share of common area expenses. Additional lease payments are
required if agreed -upon revenue thresholds are attained. These leases may be cancelled at the City's option
if the City ceases liquor operations. Total rental expense under the lease agreements for the year ended
December 31, 2009 was $ 269,969. Future minimum base rent payments under the current agreements are
as follows:
Total
Year Minimum
Ending Rents
2010 $ 144
2011 93
2012 93
2013 93
$ 424,121
F. LONG -TERM DEBT
The City issues general obligation bonds to provide funds for the construction of major capital facilities,
construction of infrastructure, and economic development and redevelopment. General obligation bonds
have been issued for governmental activities.
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG -TERM DEBT (Continued)
As of December 31, 2009 the long -term debt of the financial reporting entity consisted of the following:
GOVERNMENTAL ACTIVITIES
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/09
General Obligation Bonds:
Police and Fire Building Refunding Bonds 2.00 % -3.35% 12/01/2004 02/01/2013 $ 5,045,000 $ 2,665,000
Total General Obligation Bonds 5,045,000 2,665,000
G.O. Tax Increment Bonds:
Taxable Tax Increment Refunding Bonds of 2004 2.25 % -4.40% 12/01/2004 02/01/2011 2,470,000 820,000
Taxable Tax Increment Bonds of 2004 4.75 % - 5.125% 12/01/2004 02/01/2020 17,245,000 14,310,000
Taxable Tax Increment Bonds of 2008 3.00 % -5.30% 05/01/2008 02/01/2018 4,335,000 2,665,000
Total G.O. Tax Increment Bonds 24,050,000 17,795,000
G.O. Improvement Bonds :
1999 Improvement Bonds 4.10 % -5.00% 12/01/1999 02/01/2010 1,585,000 150,000
2000 Improvement Bonds 4.30 % -4.95% 12/01/2000 02/01/2011 735,000 130,000
2001 Improvement Bonds 2.60 % -4.40% 12/01/2001 02/01/2012 730,000 195,000
2003 Improvement Bonds 1.45 % -4.00% 01/01/2003 02/01/2013 1,205,000 440,000
2004 Improvement Bonds 2.10 % -3.65% 12/01/2004 02/01/2015 1,010,000 570,000
2006 Improvement Bonds 3.55 % -3.80% 12/01/2006 02/01/2017 1,460,000 1,050,000
2008 Improvement Bonds 3.25 % -4.25% 12/15/2008 02/01/2019 2,390,000 2,390,000
Total G.O. Improvement Bonds 9,115,000 4,925,000
Total - bonded indebtedness $ 38,210,000 25,385,000
Other Liabilities
Compensated absences payable 1,091,553
Net OPEB obligation 290,426
Total - other liabilities 1,381,979
Total City indebtedness -governmental activities $ 26,766,979
All long -term bonded indebtedness outstanding at December 31, 2009 is backed by the full faith and credit
of the City, including improvement and tax increment bond issues. Bonds in the governmental activities
will be retired by future property tax levies, tax increments or special assessments accumulated in the
specific debt services funds. In the event that a deficiency exists because of unpaid or delinquent tax
increments or special assessments at the time a debt service payment is due, the City must provide
resources to cover the deficiency until other resources are available. Delinquent tax increments in the
governmental funds at December 31, 2009 were $ 41,730; delinquent special assessments in the
governmental funds at December 31, 2009 were $ 62,180, which is included in the special assessments
receivable balance of $ 3,636,391.
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG -TERM DEBT
GOVERNMENTAL ACTIVITIES (Continued)
The G.O. Improvement Bonds were issued to finance the construction and replacement of street and storm
drainage capital assets. Of the $ 4,925,000 outstanding at December 31, 2009 the amounts applicable to
street and storm capital assets is $ 4,080,707 and $ 844,293, respectively.
Annual debt service requirements to maturity for long -term debt are as follows:
Governmental Activities
Year Ending General Obligation Bonds G.O. Tax Increment Bonds G.O. Improvement Bonds
December 31 Principal Interest Principal Interest Principal Interest
2010 $ 640 $ 75,153 $ 2,78500 $ 783,961 $ 92000 $ 16706
2011 640 55,632 1 702 745 136
2012 685 34 92500 651 67000 111,460
2013 700,000 1 1,725 1,365,000 598,107 590,000 88,869
2014 - - 1,43000 532 47500 69,427
2015 -2019 - - 8 1 1 124
2020 - - 1,80000 46,125 - -
Total $ 2 $ 177 $ 17 $ 4,835,487 $ 4 $ 698
CHANGE IN LONG -TERM LIABILITIES
Long -term liability activity for the year ended December 31, 2009 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation bonds $ 3,275,000 $ - $ (610,000) $ 2,665,000 $ 640,000
G.O. tax increment bonds 20,560,000 - (2,765,000) 17,795,000 2,785,000
G.O. improvement bonds 5,690,000 - (765,000) 4,925,000 920,000
Total bonds payable 29,525,000 - (4,140,000) 25,385,000 4,345,000
Compensated absences 1,075,953 79,999 (64,399) 1,091,553 109,155
Net OPEB obligation 147,045 311,623 (168,242) 290,426 -
Total government activity
long -term liabilities $ 30,747,998 $ 391,622 $ (4,372,641) $ 26,766,979 $ 4,454,155
Compensated absences are liquidated by the Public Employees Compensated Absences Fund.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG -TERM DEBT (Continued)
CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds or Notes to
provide assistance to qualified private sector entities for the acquisition and construction of housing,
industrial, or commercial facilities deemed to be in the public interest. The bonds or notes are secured by
the property financed and are payable solely from payments received on the underlying mortgage loans.
The City has no obligation of its assets or of its general tax base for the repayment of any of these bonds or
notes. Accordingly, the bonds or notes are not reported as liabilities in the accompanying financial
statements. Upon final redemption of the bonds or notes, ownership of the property transfers to the private
sector entity served by the bond or note issue.
As of December 31, 2009 there were two series of fixed rate Multifamily Housing Revenue Refunding
bonds, one Housing Revenue Development Refinancing Note, one series of Variable Rate Demand
Refunding Industrial Revenue Bonds, two Healthcare Revenue Notes, and four Senior Housing
Development Revenue Notes outstanding. The aggregate amount of conduit debt obligations at December
31, 2009 is $ 29,636,665.
G. FUND EQUITY
Net assets reported in the government -wide statement of net assets at December 31, 2009 include the
following:
Governmental activities
Invested in capital assets, net of related debt:
Land $ 3,537473
Construction in progress 4,155,434
Other capital assets, net of depreciation 3203
Less: related long -term debt outstanding (6,745,707)
Total invested in capital assets, net of related debt 33,550
Restricted:
Debt service 6,971,845
Tax increment purposes 22,056
Total restricted 29
Unrestricted 402,990
Total governmental activities net assets $ 66,661,645
Related debt for governmental activities capital assets includes $ 2,665,000 in General Obligation Bonds
and $ 4,080,707 in G.O. Improvement Bonds, the amount issued to finance the street portion of
construction projects. The remaining $ 844,293 of the G.O. Improvement Bonds outstanding was issued to
finance the storm drainage portion of construction projects.
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY (Continued)
Business -type activities
Invested in capital assets:
Land $ 3,194,983
Construction in progress 2,990,969
Other capital assets, net of depreciation 36,111,158
Total invested in capital assets 42,297,110
Unrestricted 8,835
Total bus Ines s -type activities net as s ets $ 51
Governmental fund balances reported on the fund financial statements as of December 31, 2009 include the
following:
Reserved
Major Funds:
General:
Committed contracts $ 1,774
Inventories 25,719
Prepaid items 500
Tax Increment District No. 3:
Statutory housing obligation 2,912,165
G. O. Improvement Bonds:
Debt service 3,054,056
Infrastructue Construction:
Committed contracts 342
Nonmajor Funds:
Advances to other funds 792488
Committed contracts 390,389
Debt service 1,204,714
Total $ 8,724,317
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY (Continued)
Unreserved, designated
Major Funds:
General:
Working capital $ 8,502,012
Tax Increment District No. 3:
Economic development 5,263
Nonmajor Funds:
Economic development 3,974
Capital improvements 4
Total $ 22,324,598
Unreserved, Undesignated (deficit)
Major Funds:
Capital Project $ (949,133)
Nonmajor Funds:
Special Revenue 161,871
Capital Project (25,807)
Total $ (813,069)
Note 5 OTHER INFORMATION
A. 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.
Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust
(LMCIT), a public entity risk pool currently operating as a common risk management and insurance
program for Minnesota cities: general liability, property, automobile, mobile property and marine, crime,
employee dishonesty, boiler, and open meeting law. The City pays an annual insurance premium to the
LMCIT for its insurance coverage. The City is subject to supplemental assessments if deemed necessary
by the LMCIT. Currently, the LMCIT is self - sustaining through member premiums and reinsures through
commercial companies for claims in excess of various amounts. The City retains risk for the deductible
portions of the insurance policies. The amount of these deductibles is considered immaterial to the
financial statements.
Workers' compensation coverage is provided through a pooled self - insurance program through the LMCIT.
The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. The LMCIT reinsures through Workers' Compensation Reinsurance
Association (WRCA) as required by law. For workers' compensation, the City is not subject to a
deductible. The City's workers' compensation is retroactively rated. With this type of coverage, final
premiums are determined after loss experience is known. The amount of premium adjustment, if any, is
considered immaterial and not recorded until received or paid.
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
A. RISK MANAGEMENT (Continued)
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.
B. EMPLOYEE RETIREMENT PLANS
1. DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
All full -time and certain part -time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (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 Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA,
60 Empire Drive Suite 200, St. Paul, Minnesota, 55103 -2088 or by calling 651- 296 -7460 or 800 -652-
9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes
are established and amended by the state legislature. The City makes annual contributions to the
pension plans equal to the amount required by state statutes. PERF Coordinated Plan members are
required to contribute 6.00% of their annual covered salary. PEPFF members are required to
contribute 9.40% of their annual covered salary. The City is required to contribute the following
percentages of annual covered payroll: 6.75% for Coordinated Plan PERF members and 14.10% for
PEPFF members. The City's contributions to the Public Employees Retirement Fund for the years
ending December 31, 2009, 2008, and 2007 were $ 460,816, $ 428,616, and $ 392,528, respectively.
The City's contributions to the Public Employees Police and Fire Fund for the years ending December
31, 2009, 2008, and 2007 were $ 508,226 $ 444,527, and $ 374,495, respectively. The City's
contributions were equal to the contractually required contributions for each year as set by state statute.
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS (Continued)
2. PENSION PLAN — BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
PLAN DESCRIPTION
The City contributes to the Brooklyn Center Fire Department Relief Association (the Association)
which is the administrator of a single employer, public employee defined benefit retirement system to
provide a retirement plan (the Plan) to volunteer firefighters of the City who are members of the
Association. The Association is organized and operates under the provisions of Minnesota State
Statutes 424A, and provides benefits in accordance with those statutes.
The Association provides retirement benefits to members and survivors, upon death of eligible
members. Benefits are established by the Association and approved by the City Council under the
applicable statutes. The defined retirement benefits are based on a member's years of service. Vesting
begins after the 10th year of service with a 60% benefit increasing to 100% after the 20th year of
service.
Full benefits are available after 20 years of service by the member and having attained the age of 50.
The current benefit available is a lump sum distribution of $ 7,500 per year of service. Vested,
terminated members who are entitled to benefits but are not yet receiving them are bound by the
provisions in effect at the time of termination of membership.
The Association issues a financial report that includes financial statements and required supplementary
information for the Brooklyn Center Fire Department Relief Association. That report is available at
the City of Brooklyn Center City offices.
FUNDING POLICY
The City levies property taxes at the direction of and for the benefit of the Plan and passes through
state aids allocated to the Plan, all in accordance with enabling State statutes. The minimum tax levy
obligation is the financial contribution requirement for the year less anticipated state aids.
CONTRIBUTIONS
Total contributions to the plan in 2008 were $ 117,983 of which all was from the State of Minnesota.
The actuarially determined contribution based on an actuarial valuation performed at January 1, 2007
was $ 91,186, which represents funding for normal cost of $ 122,356 and amortization of the excess
over the actuarial accrued liability of ($ 31,170). Actual contributions have continued at higher levels
to allow for a transition to a defined contribution plan in the future. These higher payments are
irrevocable and do not affect the level of future City contributions, nor do they constitute an asset of
the City.
The City's $ 117,983 contribution to the Association in 2008 was recorded as intergovernmental
revenue and fire department expenditure in the General Fund.
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
2. PENSION PLAN — BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION (Continued)
The information below is the most recent data available.
Actuarial valuation date 1/1/2007
Actuarial cost method Entry age normal cost method
Amortization method Level dollar amount amortized
on a closed basis
Remaining amortization period 12 years
Asset valuation method fair value
Actuarial assumptions:
Investment rate of return 6.0% compounded annually
Discount rate for obligations 6.00%
Projected salary increases Not applicable
Post retirement benefits None
Inflation rate Not applicable
THREE YEAR TREND INFORMATION
Three Year Trend Information
Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
12/31/2006 $ 161M19 100% $ -
12/31/2007 139,441 100% -
12/31/2008 117,983 100% -
SCHEDULE OF FUNDING PROGRESS
Assets in
Excess of
Actuarial Actuarial Actuarial (Unfunded)
Valuation Value of Accrued Accrued Funded
Date Assets Liability Liab ility Ratio
01/01/2003 $ 2,540,231 $ 2,81307 $ (273,456) 90.3%
01/01/2005 3,38103 2,986,223 395,380 113.2%
01/01/2007 4,024,987 3,713,292 31105 108.4%
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION (Continued)
C. OTHER POST - EMPLOYMENT BENEFITS
PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 5.B., the City provides postemployment
health care benefits for retired employees and police disabled in the line of duty, through a single- employer
defined benefit plan administered by the City. The authority to provide these benefits is established in
Minnesota Statutes Sections 471.61 subd. 2a. and 299A.465. The benefits, benefit levels, employee
contributions and employer contributions are governed by the City and can be amended by the City through
its personnel manual and collective bargaining agreements with employee groups. The Plan is not
accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The
Plan does not issue a separate report.
BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City's group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Former employees who are receiving, or who have met age and service requirements to
receive, an annuity from a Minnesota public pension plan and those receiving a disability benefit from such
a plan are immediately eligible to participate in this Plan. Retirees may obtain dependent coverage if the
employee received dependent coverage immediately before leaving employment. Covered spouses may
continue coverage after the death of a retiree. In addition, the surviving spouse of an active employee may
continue coverage in the group health insurance plan after the employee's death.
All health care coverage is provided through the City's group health insurance plans. The retiree is
required to pay the premium as described below:
Employees hired before January 1, 1992 with continuous full -time employment
Employees who, on the date of their retirement, meet eligibility requirement for a full retirement annuity
under PERA or PERA Police without reduction of benefits because of age, disability, or any other reason
for reduction shall be eligible for the City to pay 100% of the single- person premium until such time as the
retiree is eligible for Medicare or at age 65, whichever is sooner. If the retiree desires to continue coverage
in excess of single coverage, the additional cost for the coverage shall be paid to the City on a monthly
basis.
Employees hired after January 1, 1992
The retiree is required to pay 100% of their premium cost for the City- sponsored group health insurance
plan in which they participate.
The premium is a blended rate determined on the entire active and retiree population. Since the projected
claims costs for retirees exceed the blended premium paid by retirees, they are receiving an implicit rate
subsidy (benefit). The coverage levels are the same as those afforded to active employees.
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
C. OTHER POST - EMPLOYMENT BENEFITS
BENEFITS PROVIDED (Continued)
Disabled police and firefighter
The City is required to continue to pay the employer's contribution toward health coverage for police or
firefighters disabled in the line of duty per Minnesota Statute 299A.465, until age 65. Dependent coverage
is included, if the dependents were covered at the time of the disability.
PARTICIPANTS
As of the actuarial valuation dated January 1, 2008, participants consisted of:
Retirees for which the City is paying the single premium 12
Retirees and beneficiaries currently purchasing
health insurance through the City 3
Disabled police officers 3
Active employees 147
Total 165
FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay -as- you -go
basis. The City Council may change the funding policy at any time.
ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City's annual other post employment benefit (OPEB) cost is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover the normal cost each year and amortize any unfunded actuarial obligation (or funding
excess) over a period not to exceed 30 years. The net OPEB obligation as of December 31, 2009 was
calculated as follows:
Annual required contribution $ 314,184
Interest on net OPEB obligation 6,617
Adjustment to ARC (9,178)
Annual OPEB cost 311,623
Employer Contributions
Direct 102,650
Indirect Implicit Rate Subsidy 65,592
Increase (decrease) in net OPEB obligation 143,381
Net OPEB obligation, beginning of year 147,045
Net OPEB obligation, end of year $ 290,426
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
C. OTHER POST - EMPLOYMENT BENEFITS
ANNUAL OPEB COSTS AND NET OPEB OBLIGATION (Continued)
The City first had an actuarial valuation performed for the plan as of January 1, 2008 to determine the
funded status of the plan as of that date as well as the employer's ARC for the fiscal year ended December
31, 2009. The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the net OPEB obligation for 2009 were as follows:
Percentage of
Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB
Ended Cost Contributions Contributed Obligation
December 31, 2008 $ 314,184 $ 167,139 53.20% $ 147
December 31, 2009 $ 311 $ 168,242 53.99% $ 290,426
FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited into a trust for future benefits;
therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
Unfunded
Actuarial Actuarial Actuarial Actuarial UAAL as a
Valuation Value of Accrued Accrued Funded Covered Percentage of
Date Assets Liability (AAL) * Liability (UAAL) Ratio Payroll Covered Payroll
January 1, 2008 $ - $ 3,996,136 $ 3,996,136 0.00% $ 8,882,315 44.99%
* Using projected unit credit actuarial cost method
Note - the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to the first valuation.
ACTUARIAL ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the health care cost trend. Amounts determined
regarding the funding status of the plan and the annual required contribution of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multi -year trend information that shows whether the actuarial
value of the plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits.
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
C. OTHER POST - EMPLOYMENT BENEFITS
ACTUARIAL ASSUMPTIONS (Continued)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effect of short -term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long -term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the Projected Unit Credit actuarial cost was used. The actuarial
assumptions included a 4.5% investment rate of return (net of administrative expenses) and an initial
annual health care cost trend rate of 10.0% reduced by 0.5% each year to arrive at an ultimate health care
cost trend rate of 5.0 %. The actuarial value of assets as $0. The plans' unfunded actuarial accrued liability
is being amortized using a 5.0% payroll growth rate method over 30 years on a closed basis. The
remaining amortization period at December 31, 2009 was 28 years.
D. ARBITRAGE REBATE
The Tax Reform Act of 1986 requires governmental entities to pay to the federal government income
earned on the proceeds from the issuance of debt in excess of interest costs, pending the expenditure of the
borrowed funds. This rebate of interest income (known as arbitrage) applies to governmental debt issued
after August 31, 1986.
The City issued greater than $5 million of bonds in 2004 and therefore is required to rebate excess
investment income relating to these issues to the federal government. The extent of the City's liability for
arbitrage rebates on the remaining bond issues is not determinable at this time. However, in the opinion of
management, any such liability would be immaterial.
E. LITIGATION
The City is subject to certain legal claims in the normal course of business. Management does not expect
the resolution of these claims will have a material impact on the City's financial condition or results of
operations.
F. CONTINGENT LIABILITIES
Tax Increment Notes
In May 2002, the City entered into two limited tax increment notes with developers whereby the City will
pay the developers a percentage of the available tax increment. Whether payments will occur and the
amount of the payments is unpredictable since all payments are dependent on the City receiving tax
increment revenues from the developer's project. As such, this liability has not been recorded in the
financial statements. Any potential liability ends with the decertification of the tax increment district.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION
F. CONTINGENT LIABILITIES (Continued)
A schedule of the notes outstanding at December 31, 2009 is as follows:
Amended
Original 12/31/2009 Interest Maturity
Note Principal Balance Rate Date
Twin Lakes Business Park $ 2,424,199 $ 1,902,759 8.00% 1/31/2021
G. JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
The City has several agreements with other entities that provide reduced costs, better service, and
additional benefits to the participants. The programs in which the City participates are listed below and
amounts recorded within the current year's financial statements are disclosed.
Local Government Information Systems Association ( LOGIS)
This consortium of approximately 30 government entities provides computerized data processing and
support services to its members. LOGIS is legally separate; the City does not appoint a voting majority of
its board, and the Consortium is fiscally independent of the City. The total amount recorded within the
2009 financial statements of the City is $ 369,094 for general services and application upgrades provided.
Costs were allocated to the various funds based on applications and /or use of services. Complete financial
statements for LOGIS may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley,
Minnesota 55422.
LOGIS Insurance Group
This group provides cooperative purchasing of health and life insurance benefits for approximately 45
governmental entities. The total of 2009 health and life insurance costs paid by the City was $ 1,304,651.
Complete financial statements may be obtained from Gallagher Benefit services, Inc. located at 3600
American Blvd West, Bloomington, MN 55431.
The Brooklyn Center Fire Department Relief Association (the Association)
The Association is organized as a nonprofit organization, legally separate from the City, by its members to
provide pension and other benefits to members in accordance with Minnesota Statutes. Its board of
directors is elected by the membership of the Association and not by the City Council. The Association
issues its own set of financial statements. All funding is conducted in accordance with applicable
Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the
Association and are only reviewed by the City. The Association pays benefits directly to its members. The
Association may certify tax levies to Hennepin County directly if the City does not carry out this function.
Because the Association is fiscally independent of the City, the financial information of the Association has
not been included within the City's financial statements. (See Note 5.B.2. for disclosures relating to the
pension plan operated by the Association.) Complete financial statements for the Association may be
obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
Note 5 OTHER INFORMATION (Continued)
H. SUBSEQUENT EVENT
In March 2010, the City sold $ 2,350,000 in Taxable General Obligation Utility Revenue Bonds (Build
America Bonds — Direct Pay), the proceeds of which will be used to reimburse the Water Utility and Sewer
Utility Enterprise Funds for costs incurred for the Automatic Meter Read project.
In March 2010, the City purchased the property at 4800 71st Avenue N from Edith Hernandez Franco for
$206,700. The property will be added to the capital assets in 2010.
73
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74
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property taxes $ 11 $ 11 $ 11 $ (600,160)
Market value homestead credit - - 583 583
Penalties and interest 15 15 36 20
Lodging tax 720 720 591 (128,709)
Total taxes 12 12 12 (124,634)
Special assessments - - 4 4
Licenses and permits:
Liquor and beer licenses 72 72 85 13
Building permits 330 330 222 (107,955)
Mechanical permits 70 70 46 (23,898)
Sewer and water permits 1 1 1 (209)
Plumbing permits 40 40 28 (11,906)
Garbage licenses 2 2 3 345
Mechanical licenses 5 5 7 2
Service station licenses 2 2 2 190
Vehicle dealer licenses 1 1 1 -
Bowling licenses 720 720 720 -
Cigarette licenses 2 2 2 -
Sign permits 5 5 4 (708)
Rental dwelling licenses 135 135 154 19
Amusement licenses 1 1 860 (315)
Electrical Permits 50 50 43 (6
ROW permits 3 3 5 2
Miscellaneous licenses and permits 8 8 6 (1
Total licenses and permits 731 731 616 (115,160)
Intergovernmental:
Federal:
Other federal grants - 110 1 (108,683)
State:
Local government aid 1 776 1 243
Police pension aid 300 300 302 2
PERA aid 34 34 34 -
Fireperson pension aid 140 140 97 (42,275)
Police training - - 17 17
Local:
Miscellaneous grants 64 64 69 5
Total intergovernmental 2 1 1 118
Charges for services:
General government charges 34 34 359 324
Public safety charges 19 19 74 55
Community development fees 3 3 12 9
Recreation fees 311 311 296 (15,114)
Community Center fees 351 351 365 14
Total charges for services 719 719 1,109,171 389
75
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues (continued):
Fines and forfeits $ 296 $ 296 $ 340 $ 44
Miscellaneous:
Investment earnings (net of market value change) 185 185 55 (129,136)
Other 45 45 118 73
Total miscellaneous 230 230 174 (56,115)
Total revenues 16 15 16 261
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services 51 51 49 2
Supplies 500 100 699 (599)
Services and other charges 81 78 77 1
Total mayor and council 133 130 127 3
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services 648 646 652 (5
Supplies 8 4 5 (829)
Services and other charges 48 38 35 2
Total administrative office 706 689 693 (3
Elections and voter registration:
Current:
Personal services 62 62 58 4
Supplies 1 1 - 1
Services and other charges 18 18 3 15
Total elections and voter registration 82 82 61 21
Assessor's office:
Current:
Personal services 267 266 262 3
Supplies 3 2 1 721
Services and other charges 42 41 42 (758)
Total assessor's office 313 310 306 3
Finance:
Current:
Personal services 469 387 392 (5
Supplies 4 2 1 1
Services and other charges 15 15 15 (296)
Total finance 489 405 409 (4
Legal:
Current:
Services and other charges 375 375 388 (13,772)
76
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:
General government (continued):
Government buildings:
Current:
Personal services $ 291 $ 290 $ 294 $ (4
Supplies 59 79 89 (10,277)
Services and other charges 416 395 442 (47,027)
Total government buildings 767 765 826 (61,648)
Information technology:
Current:
Personal services 202 200 200 9
Supplies 5 6 1 4
Services and other charges 158 147 130 17
Total information technology 365 354 332 21
Total general government 3 3,112,311 3 (34,440)
Public safety:
Police protection:
Current:
Personal services 5 5 5 (97,583)
Supplies 123 107 105 1
Services and other charges 942 893 880 13
Total police protection 6 6 6 (82,274)
Fire protection:
Current:
Personal services 548 548 511 37
Supplies 87 74 42 32
Services and other charges 327 278 231 47
Total fire protection 964 902 785 116
Protective inspection:
Current:
Personal services 863 838 620 218
Supplies 4 4 11 (6
Services and other charges 126 122 141 (19,005)
Total protective inspection 995 966 773 192
Emergency preparedness:
Current:
Personal services 66 66 60 5
Supplies 21 11 - 11
Services and other charges 7 7 4 2
Total emergency preparedness 95 85 65 19
Total public safety 8 8 8 246
77
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Public works:
Engineering department:
Current:
Personal services $ 530 $ 527 $ 591 $ (63,988)
Supplies 16 7 4 2
Services and other charges 51 35 31 4
Total engineering department 597 570 628 (57,665)
Street department:
Current:
Personal services 785 781 775 6
Supplies 148 113 104 8
Services and other charges 649 552 480 72
Total street department 1 1 1 87
Total public works 2 2 1 30
Community services:
Social services:
Current:
Services and other charges 70 70 71 (700)
Civic events:
Current:
Services and other charges 5 5 - 5
Total community services 75 75 71 4
Parks and recreation:
Administration:
Current:
Personal services 180 179 185 (5
Supplies - - 97 (97)
Services and other charges 6 6 7 (1
Total administration 187 186 193 (6
Recreation programs:
Current:
Personal services 454 446 467 (21,260)
Supplies 34 34 32 1
Cost of good sold to public 8 8 7 1
Services and other charges 201 201 197 4
Total recreation programs 698 691 705 (14,510)
Community center:
Current:
Personal services 450 449 441 8
Supplies 31 31 14 17
Services and other charges 82 82 84 (1
Total community center 564 563 539 23
78
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 9
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:
Parks and recreation (continued):
Park maintenance:
Current:
Personal services $ 548 $ 545 $ 562 $ (17,328)
Supplies 63 49 41 8
Services and other charges 339 310 301 9
Total park maintenance 950 906 905 1
Total parks and recreation 2 2 2 3
Economic development:
Convention bureau:
Current:
Services and other charges 342 342 279 62
Nondepartmental:
Expenditures not charged to departments:
Current:
Supplies 18 18 24 (6
Services and other charges 482 576 288 288
Total nondepartmental 500 595 313 281
Total expenditures 17 16 16 593
Revenues over (under) expenditures (859,500) (943,714) (88,751) 854
OTHER FINANCING SOURCES (USES)
Transfers in - administrative services reimbursed 839 923 859 (64,258)
Transfers from other funds 90 90 100 10
Transfers to other funds (70,000) (70 (84,138) (14,138)
Total other financing sources (uses) 859 943 875 (68,396)
Net increase (decrease) in fund balance $ - $ - 786 $ 786
Fund balance - January 1 7
Fund balance - December 31 $ 8
79
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - TAX INCREMENT DISTRICT NO. 3
For the Year Ended December 31, 2009
Variance with
Final Budget -
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES
Taxes:
Tax increments $ 2 $ 2 $ 2 $ 252
Market value homestead credit - - 6 6
Investment earnings (net of market value adjustment) 249 249 79 (169,903)
Miscellaneous - - 250 250
Total revenues 2 2 2 89
EXPENDITURES
Current:
Economic development:
Personal services - - 2 (2
Services and other charges 235 235 1 (1
Capital outlay:
Economic development - - 806 (806,619)
Total expenditures 235 235 2 (2
Revenues over (under) expenditures 2 2 (213,647) (2
OTHER FINANCING SOURCES (USES)
Transfers out (3 (3 (2 1
Net increase (decrease) in fund balance $ (1 $ (1 (2 $ (1
Fund balance - January 1 10
Fund balance - December 31 $ 8
80
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS
For the Year Ended December 31, 2009
Unfunded
Actuarial Actuarial Actuarial Actuarial UAAL as a
Valuation Value of Accrued Accrued Funded Covered Percentage of
Date Assets Liability (AAL) Liability (UAAL Ratio Payroll Covered Payroll
January 1, 2008 $ - $ 3 $ 3 0.00% $ 8 44.99%
Percentage
Annual of Annual
Fiscal Year OPEB Employer OPEB Cost Net OPEB
Ended Cost Contribution Contributed Obligation
December 31, 2008 $ 314 $ 167 53.20% $ 147
December 31, 2009 311 168 53.99% 290
The City implemented GASB Statement No. 45 for the year ended December 31, 2008.
Information for prior years is not available.
81
CITY OF BROOKLYN CENTER, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2009
Note A LEGAL COMPLIANCE — BUDGET
The General Fund and Tax Increment District No. 3 Special Revenue Fund budgets are legally adopted on a
basis consistent with accounting principles generally accepted in the United States of America. The legal level
of budgetary control is the department level for the General Fund and the fund level for all other governmental
funds. The following General Fund departments and major special revenue funds had expenditures in excess of
budgeted appropriations:
Final Over
Budget Actual Budget
Major Funds:
General Fund:
Administrative $ 689,302 $ 693,183 $ (3
Finance 405,138 409,973 (4
Legal 37500 388,772 (13,772)
Government buildings 765,071 826,719 (61,648)
Police protection 6 6,508,142 (82,274)
Engineering 570,916 628,581 (57,665)
Social services 70,819 71,519 (700)
Parks and recreation administration 186,293 193,260 (6,967)
Recreation programs 691 705 (14,510)
Special Revenue Funds:
Tax Increment District No. 3 23500 2M%635 (2,414,635)
82
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources
that are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and
payment of, interest, principal and related costs on general long -term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
83
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET Statement 12
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2009
Total
Special Debt Capital Nonmaj or
Revenue Service Project Governmental
ASSETS
Cash and investments $ 4 $ 1 $ 4 $ 9
Receivables:
Accounts - net - - 166 166
Current taxes 3 7 - 10
Delinquent taxes 18 42 - 60
Due from other governments 143 - 771 914
Interfund receivable 100 - 231 331
Advances to other funds - - 792 792
Assets held for resale 787 - - 787
Total assets 5 1 6 12
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 16 2 32 51
Accrued salaries and wages 12 - - 12
Due to other funds - - 595 595
Contracts payable - - 153 153
Interfund payable 100 - - 100
Deferred revenue 805 42 - 847
Total liabilities 935 44 781 1
Fund balances:
Reserved:
Advances to other funds - - 792 792
Committed contracts - - 390 390
Debt service - 1 - 1
Unreserved:
Designated:
Capital improvements - - 4 4
Economic development 3 - - 3
Undesignated 161 - (25,807) 136
Total fund balances 4 1 5 11
Total liabilities and fund balances $ 5 $ 1 $ 6 $ 12
84
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND Statement 13
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2009
Total
Special Debt Capital Nonmaj or
Revenue Service Project Governmental
REVENUES
Property taxes $ 382 $ 705 $ - $ 1
Tax increments 1 - - 1
Franchise fees - - 656 656
Intergovernmental 405 - 839 1
Charges for services 11 - - 11
Investment earnings (net of market value adjustment) 32 7 48 88
Miscellaneous 93 - 109 203
Total revenues 2,170,113 713 1 4
EXPENDITURES
Current:
General government - - 706 706
Public safety 319 - - 319
Public works - - 122 122
Parks and recreation 59 - 58 118
Economic development 409 - - 409
Capital outlay:
General government - - 113 113
Public works - - 1 1
Parks and recreation - - 34 34
Debt service:
Principal retirement 305 610 - 915
Interest - 93 - 93
Fiscal agent fees - 3 - 3
Total expenditures 1 707 2 4
Revenues over (under) expenditures 1 6 (738,587) 344
OTHER FINANCING SOURCES (USES)
Transfers in 387 - 644 1
Transfers out (498,270) - (6 (504,619)
Total other financing sources (uses) (110,288) - 638 527
Net increase (decrease) in fund balances 966 6 (100,308) 872
Fund balances - January 1 3 1 5 10,210,113
Fund balances - December 31 $ 4 $ 1 $ 5 $ 11
85
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86
NONMAJOR SPECIAL REVENUE FUNDS
The City of Brooklyn Center had the following Special Revenue Funds during the year:
Housing and Redevelopment Authority Fund (H - This fund has authority to levy an
ad valorem property tax for the purpose of conducting housing and redevelopment
projects. These projects are accounted for in the EDA Fund; all tax proceeds are
transferred to that fund.
Economic Development Authority Fund (EDA) - This fund was established to account
for the Economic Development Authority (EDA) of Brooklyn Center. The EDA carries
out development activities; it has authority to operate an enterprise. The Earle Brown
Heritage Center operates under this authority, as well as the tax increment financing
activities. The EDA also does redevelopment and housing projects, funded by an ad
valorem property tax levy and transfers from the CDBG and HRA funds.
Earle Brown Tax Increment 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 on bonds which were issued for the same purpose.
Tax Increment District No. 4 Fund — 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 were issued for the same purpose.
Police Drug Forfeiture Fund - This fund was established to account for property and /or
cash seized by Police Department personnel.
Community Development Block Grant Fund (CDBQJ - This fund was established to
account for funds received under Title I of the Housing and Community Development
Act of 1974.
City Initiatives Grant Fund — Revenues and expenditures from grants received from
outside entities are accounted for in this fund. Programs include several federal, state,
and local public safety grants, and state and local recreation grants.
87
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2009
Housing and Economic Earle Brown
Redevelopment Development Tax Increment
Authority Authority District
ASSETS
Cash and investments $ - $ 1 $ 1
Receivables:
Current taxes 3 - -
Delinquent taxes 18 - -
Due from other governments - - -
Interfund receivable - 100 -
Asset held for resale - 787 -
Total assets 21 2 1
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable - 5 3
Accrued salaries and wages - 7 -
Interfund payable - - -
Deferred revenue 18 787 -
Total liabilities 18 799 3
Fund balances:
Unreserved:
Designated:
Economic development 3 1 1
Undesignated - - -
Total fund balances 3 1 1
Total liabilities and fund balances $ 21 $ 2 $ 1
88
Statement 14
Total
Tax Police Community City Nonmaj or
Increment Drug Development Initiatives Special
District No. 4 Forfeiture Block Grant Grant Revenue
$ 173 $ 37 $ - $ 93 $ 4
- - - - 3
- - - - 18
- - 100 43 143
- - - - 100
- - - - 787
173 37 100 136 5
1 4 - 2 16
- - - 5 12
- - 100 - 100
- - - - 805
1 4 100 7 935
171 - - - 3
- 32 - 129 161
171 32 - 129 4
$ 173 $ 37 $ 100 $ 136 $ 5
89
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2009
Housing and Economic Earle Brown
Redevelopment Development Tax Increment
Authority Authority District
REVENUES
Property taxes $ 382 $ - $ -
Tax increments - - 905
Intergovernmental - - -
Charges for services - - -
Investment earnings (net of market
value adjustment) - 17 13
Miscellaneous - 195 -
Total revenues 382 17 919
EXPENDITURES
Current:
Public safety:
Personal services - - -
Supplies - - -
Services and other charges - - -
Total public safety - - -
Parks and recreation:
Personal services - - -
Supplies - - -
Services and other charges - - -
Total parks and recreation - - -
Economic development:
Personal services - 229 -
Supplies - 273 -
Services and other charges - 167 9
Total economic development - 396 9
Debt service:
Principal - - -
Total expenditures - 396 9
Revenues over (under) expenditures 382 (379,203) 909
OTHER FINANCING SOURCES (USES)
Transfers in - 382 657
Transfers out (382,325) (657) -
Total other financing sources (uses) (382,325) 381 657
Net increase (decrease) in fund balances 290 2 910
Fund balances - January 1 2 1 1
Fund balances - December 31 $ 3 $ 1 $ 1
90
Statement 15
Total
Tax Police Community City Nonmaj or
Increment Drug Development Initiatives Special
District No. 4 Forfeiture Block Grant Grant Revenue
$ - $ - $ - $ - $ 382
339 - - - 1
- 1 100 304 405
- - - 11 11
320 410 - 752 32
- 49 - 43 93
339 51 100 360 2
- - - 195 195
- 36 - 49 86
- 14 - 23 37
- 50 - 268 319
- - - 3 3
- - - 10 10
- - - 45 45
- - - 59 59
- - - - 229
- - - - 273
2 - - - 179
2 - - - 409
305 - - - 305
308 50 - 327 1
31 251 100 32 1
- - - 5 387
- - ( 100,000) ( 15,288) (498,270)
- - ( 100,000) ( 10,288) ( 110,288)
31 251 - 22 966
140 32 - 107 3
$ 171 $ 32 $ - $ 129 $ 4
91
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY Statement 16
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Taxes:
Property taxes $ 385 $ 385 $ 362
Market value homestead credit - - 19
Total revenues 385 385 382
OTHER FINANCING SOURCES (USES)
Transfers out (385,289) (385,289) (382,325)
Net increase (decrease) in fund balance $ - $ - 290
Fund balance - January 1 2
Fund balance - December 31 $ 3
92
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY Statement 17
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment) $ 41 $ 41 $ 17
Miscellaneous - - 195
Total revenues 41 41 17
EXPENDITURES
Current:
Economic development:
Personal services 210 225 229
Supplies 4 4 273
Services and other charges 132 132 167
Total expenditures 347 363 396
Revenues over (under) expenditures (306,815) (322,267) (379,203)
OTHER FINANCING SOURCES (USES)
Transfers in 385 385 382
Transfers out - - (657)
Total other financing sources (uses) 385 385 381
Net increase (decrease) in fund balance $ 78 $ 63 2
Fund balance - January 1 1
Fund balance - December 31 $ 1
93
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - EARLE BROWN TAX INCREMENT DISTRICT Statement 18
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Taxes:
Tax increments $ 736 $ 736 $ 905
Investment earnings (net of market value adjustment) 16 16 13
Total revenue 752 752 919
EXPENDITURES
Current:
Economic development:
Services and other charges 16 16 9
Revenues over (under) expenditures 736 736 909
OTHER FINANCING SOURCES (USES)
Transfers in - - 657
Net increase (decrease) in fund balance $ 736 $ 736 910
Fund balance - January 1 1
Fund balance - December 31 $ 1
94
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 4 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Tax increments $ 301 $ 301 $ 339
Investment earnings (net of market value adjustment) - - 320
Total revenues 301 3 01, 5 62 339
EXPENDITURES
Current:
Economic development:
Services and other charges - - 2
Debt service:
Principal 286 286 305
Total expenditures 286 286 308
Net increase (decrease) in fund balance $ 15 $ 15 31
Fund balance - January 1 140
Fund balance - December 31 $ 171
95
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT Statement 20
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental $ 193 $ 193 $ 100
EXPENDITURES
Current:
Economic development:
Services and other charges 193 193 -
Revenues over (under) expenditures - - 100
OTHER FINANCING SOURCES (USES)
Transfers out - - (100
Net increase (decrease) in fund balance
Fund balance - January 1 -
Fund balance - December 31 $ -
96
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT Statement 21
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental $ 190 $ 190 $ 304
Charges for services 12 12 11
Investment earnings (net of market value adjustment) - - 752
Miscellaneous 8 8 43
Total revenues 211 211 360
EXPENDITURES
Current:
Public safety:
Personal services 247 247 195
Supplies - - 49
Services and other charges - - 23
Total public safety 247 247 268
Parks and recreation:
Personal services 3 3 3
Supplies 9 9 10
Services and other charges 237 237 45
Total parks and recreation 250 250 59
Total expenditures 498 498 327
Revenues over (under) expenditures (286,613) (286,613) 32
OTHER FINANCING SOURCES (USES)
Transfers in - - 5
Transfers out - - (15,288)
Total other financing sources (uses) - - (10,288)
Net increase (decrease) in fund balance $ (286,613) $ (286,613) 22
Fund balance - January 1 107
Fund balance - December 31 $ 129
97
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98
NONMAJOR DEBT SERVICE FUNDS
The City's Debt Service Funds account for the following types of bonded indebtedness:
General Obligation Bonds Fund — This fund is used to account for the accumulation of
resources for payment of general obligation bonds and interest thereon.
99
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET Statement 22
NONMAJOR DEBT SERVICE FUND
December 31, 2009
General
Obligation
Bonds
ASSETS
Cash and investments $ 1
Receivables:
Current taxes 7
Delinquent taxes 42
Total assets 1
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 2
Deferred revenue 42
Total liabilities 44
Fund balance:
Reserved:
Debt service 1
Total liabilities and fund balance $ 1
100
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND Statement 23
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUND
For the Year Ended December 31, 2009
General
Obligation
Bonds
REVENUES
Property taxes $ 705
Investment earnings (net of market value adjustment) 7
Total revenues 713
EXPENDITURES
Debt service:
Principal 610
Interest 93
Fiscal agent fees 3
Total expenditures 707
Net increase (decrease) in fund balances 6
Fund balances - January 1 1
Fund balances - December 31 $ 1
101
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS Statement 24
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Property taxes $ - $ - $ 299
Special assessments 850 850 1
Investment earnings (net of market value adjustment) 20 20 23
Total revenues 870 870 1
EXPENDITURES
Debt service:
Principal 765 765 765
Interest 111 111 166
Fiscal agent fees 15 15 10
Total expenditures 891 891 942
Revenues over (under) expenditures (21,102) (21,102) 254
OTHER FINANCING SOURCES (USES)
Transfers in - - 6
Net increase (decrease) in fund balance $ (21,102) $ (21,102) 260
Fund balance - January 1 2
Fund balance - December 31 $ 3
102
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - TAX INCREMENT BONDS Statement 25
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment) $ 24 $ 24 $ 401
EXPENDITURES
Debt service:
Principal 2 2 2
Interest 1 1 922
Fiscal agent fees 4 4 1
Total expenditures 3 3 3
Revenues over (under) expenditures (3 (3 (3
OTHER FINANCING SOURCES (USES)
Transfers in 3 3 2
Net increase (decrease) in fund balance $ 38 $ 38 (1
Fund balance - January 1 1
Fund balance - December 31 $ -
103
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - GENERAL OBLIGATION BONDS Statement 26
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Property taxes $ 703 $ 703 $ 705
Investment earnings (net of market value adjustment) 5 5 7
Total revenues 708 708 713
EXPENDITURES
Debt service:
Principal 610 610 610
Interest 93 93 93
Fiscal agent fees 1 1 3
Total expenditures 705 705 707
Net increase (decrease) in fund balance $ 3 $ 3 6
Fund balance - January 1 1
Fund balance - December 31 $ 1
104
NONMAJOR CAPITAL PROJECT FUNDS
The City of Brooklyn Center had the following Capital Project Funds during the year:
Capital Reserve Emergency Fund - This fund was established in 1997 to account for
monies held in reserve for catastrophic losses or unforeseen capital items.
Capital Improvements Fund - This fund was established in 1968 to provide funds, and to
account for the expenditure of such funds, for major capital outlays including, but not
limited to, construction or acquisition of major permanent facilities having a relatively
long life; and /or to reduce debt incurred for capital outlays. The financing sources of the
fund include ad valorem taxation, transfers from other funds, issuance of bonds, federal
and state grants, and investment earnings.
Municipal State Aid Fund - This fund was established to account for the state allotment
of gasoline tax collections used for transportation related construction and maintenance
proj ects.
Earle Brown Heritage Center Improvements Fund - This fund was established to provide
a stable source of funds to pay for periodic capital improvements needed at the facility.
Street Reconstruction Fund — This fund accounts for franchise fees collected, which have
been dedicated to the reconstruction of the City's infrastructure.
Technolo,,Q�y Fund - This fund, established in 2003, accounts for funds set aside for
technology improvements or major technology renovations /replacements.
105
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2009
Capital
Reserve Capital
Emergency Improvements
ASSETS
Cash and investments $ 1 $ 319
Receivables:
Accounts - net - -
Due from other governments - -
Interfund receivable - -
Advances to other funds - 792
Total assets 1 1,111,613
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable - 19
Due to other funds - -
Contracts payable - 56
Total liabilities - 75
Fund balances:
Reserved:
Advances to other funds - 792
Committed contracts - 269
Unreserved:
Designated for capital improvements 1 -
Undesignated - (25,807)
Total fund balances 1 1
Total liabilities and fund balances $ 1 $ 1,111,613
106
Statement 27
Municipal Earle Brown Total
State Aid Heritage Nonmaj or
for Center Street Capital
Construction Improvements Reconstruction Technology Projects
$ 51 $ 670 $ 1 $ 298 $ 4
- - 166 - 166
771 - - - 771
- - 231 - 231
- - - - 792
823 670 2 298 6
11 - - 1 32
- - 595 - 595
- 30 - 66 153
11 30 595 68 781
- - - - 792
- - - 121 390
811 640 1 109 4
- - - - (25,807)
811 640 1 230 5
$ 823 $ 670 $ 2 $ 298 $ 6
107
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2009
Capital
Reserve Capital
Emergency Improvements
REVENUES
Franchise fees $ - $ -
Intergovernmental - -
Investment earnings (net of market value adjustment) 13 2
Miscellaneous - 188
Total revenues 13 3
EXPENDITURES
Current:
General government:
Supplies - 684
Services and other charges - 391
Total general government - 392
Public works:
Supplies - -
Services and other charges - 5
Total public works - 5
Parks and recreation:
Services and other charges - 58
Capital outlay
General government - -
Public works - -
Parks and recreation - 34
Total capital outlay - 34
Total expenditures - 491
Revenues over (under) expenditures 13 (488,336)
OTHER FINANCING SOURCES (USES)
Transfers in - 274
Transfers out - -
Total other financing sources (uses) - 274
Net increase (decrease) in fund balances 13 (213,708)
Fund balances - January 1 1 1
Fund balances - December 31 $ 1 $ 1
108
Statement 28
Municipal Earle Brown Total
State Aid Heritage Nonmaj or
for Center Street Capital
Construction Improvements Reconstruction Technology Projects
$ - $ - $ 656 $ - $ 656
839 - - - 839
7 4 17 2 48
- 109 - - 109
846 113 674 2 1
- - - 177 177
- 72 - 65 529
- 72 - 242 706
33 - - - 33
83 - 596 - 89
116 - 596 - 122
- - - - 58
- 113 - - 113
713 - 643 - 1
- - - - 34
713 113 643 - 1
830 186 643 242 2
16 (72,356) 30 (239,179) (738,587)
- 300 - 70 644
- - (6 - (6
- 300 (6 70 638
16 227 24 (169,179) (100,308)
794 412 1 399 5
$ 811 $ 640 $ 1 $ 230 $ 5
109
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION Statement 29
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Special assessments $ 476 $ 476 $ 175
Miscellaneous 60 60 48
Total revenues 536 536 223
EXPENDITURES
Current:
Public works:
Services and other charges - - 43
Capital outlay:
Public works 7 7 509
Total expenditures 7 7 553
Revenues over (under) expenditures (7 (7 (329,639)
OTHER FINANCING SOURCES (USES)
Transfers in 6 6 -
Net increase (decrease) in fund balance $ (1 $ (1 (329,639)
Fund balance - January 1 (276,982)
Fund balance - December 31 $ (606,621)
110
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS Statement 30
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment) $ 10 $ 10 $ 2
Miscellaneous - - 188
Total revenues 10 10 3
EXPENDITURES
Current:
General government:
Supplies - - 684
Services and other charges - - 391
Public works:
Services and other charges 390 390 5
Parks and recreation:
Services and other charges - - 58
Capital outlay:
Parks and recreation - - 34
Total expenditures 390 390 491
Revenues over (under) expenditures (379,700) (379,700) (488,336)
OTHER FINANCING SOURCES (USES)
Transfers in 135 135 274
Net increase (decrease) in fund balance $ (244,700) $ (244,700) (213,708)
Fund balance - January 1 1
Fund balance - December 31 $ 1
111
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - MUNICIPAL STATE AID FOR CONSTRUCTION Statement 31
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Intergovernmental $ 665 $ 665 $ 839
Investment earnings (net of market value adjustment) 20 20 7
Total revenues 685 685 846
EXPENDITURES
Current:
Public works:
Supplies 33 33 33
Services and other charges 91 91 83
Total public works 125 125 116
Capital outlay:
Public works - - 713
Total expenditures 125 125 830
Revenues over (under) expenditures 559 559 16
OTHER FINANCING SOURCES (USES)
Transfers out (650,000) (650,000) -
Net increase (decrease) in fund balance $ (90,400) $ (90,400) 16
Fund balance - January 1 794
Fund balance - December 31 $ 811
112
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - EARLE BROWN HERITAGE CENTER IMPROVEMENTS Statement 32
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment) $ 4 $ 4 $ 4
Miscellaneous - - 109
Total revenues 4 4 113
EXPENDITURES
Current:
General government:
Services and other charges 287 287 72
Capital outlay:
General government - - 113
Total expenditures 287 287 186
Revenues over (under) expenditures (283,000) (283,000) (72,356)
OTHER FINANCING SOURCES (USES)
Transfers in 200 200 300
Net increase (decrease) in fund balance $ (83,000) $ (83,000) 227
Fund balance - January 1 412
Fund balance - December 31 $ 640
113
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - STREET RECONSTRUCTION Statement 33
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Franchise fees $ 680 $ 680 $ 656
Investment earnings (net of market value adjustment) 35 35 17,751
Total revenues 715 715 674
EXPENDITURES
Current:
Public works:
Services and other charges - - 596
Capital outlay:
Public works 850 850 643
Total expenditures 850 850 643
Revenues over (under) expenditures (13 5,000) (13 5,000) 30
OTHER FINANCING SOURCES (USES)
Transfers out - - (6
Net increase (decrease) in fund balance $ (13 5,000) $ (13 5,000) 24
Fund balance - January 1 1
Fund balance - December 31 $ 1
114
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - TECHNOLOGY Statement 34
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2009
Budgeted Amounts Actual
Original Final Amounts
REVENUES
Investment earnings (net of market value adjustment) $ 7 $ 7 $ 2
EXPENDITURES
Current:
General government:
Supplies 278 278 177
Services and other charges 67 67 65
Total expenditures 345 345 242
Revenues over (under) expenditures (337,300) (337,300) (239,179)
OTHER FINANCING SOURCES (USES)
Transfers in 70 70 70
Net increase (decrease) in fund balance $ (267,300) $ (267,300) (169,179)
Fund balance - January 1 399
Fund balance - December 31 $ 230
115
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116
NONMAJOR ENTERPRISE FUNDS
The City of Brooklyn Center had the following nonmaj or Enterprise Funds during the
year:
Recycling and Refuse Fund - This fund accounts for the operation of a state - mandated
recycling program.
Street Light Utility Fund - This fund was created to account for expenses related to
streetlights within the City. Benefiting properties are billed for these expenses.
117
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET ASSETS Statement 35
NONMAJOR ENTERPRISE FUNDS
December 31, 2009
Total
Recycling and Street Light Nonmaj or
Refuse Utility Enterprise
ASSETS
Current assets:
Cash and cash equivalents $ - $ 117 $ 117
Receivables:
Accounts - net 55 56 111
Total current assets 55 174 229
Noncurrent assets:
Capital assets:
Street light systems - 83 83
Construction in progress - 332 332
Total capital assets - 416 416
Less: Allowance for depreciation - (5 (5
Net capital assets - 410 410
Total assets 55 585 640
LIABILITIES
Current liabilities:
Accounts payable 974 16 17
Interfund payable 14 - 14
Total liabilities 15 16 31
NET ASSETS
Invested in capital assets - 410 410
Unrestricted 39 158 197
Total net assets $ 39 $ 568 $ 608
118
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND Statement 36
CHANGES IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2009
Total
Recycling and Street Light Nonmaj or
Refuse Utility Enterprise
OPERATING REVENUES
Sales and user fees $ 267 $ 253 $ 521
OPERATING EXPENSES
Supplies 61 839 900
Other services 274 40 314
Insurance 1 1 2
Utilities - 172 172
Depreciation - 5 5
Total operating expenses 276 220 496
Operating income (loss) (8 33 24
NONOPERATING REVENUES (EXPENSES)
Investment earnings (net of market value adjustment) 25 1 1
Income (loss) before contributions (8 34 26
Capital contributions - 3 3
Change in net assets (8 37 29
Net assets - January 1 48 530 579
Net assets - December 31 $ 39 $ 568 $ 608
119
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 37
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2009
Total
Recycling and Street Light Nonmaj or
Refuse Utility Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 265 $ 255 $ 521
Payments to suppliers (275,948) (211,771) (487,719)
Net cash flows provided (used) by operating activities (10,008) 43 33
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund payable 9 - 9
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 25 1 1
Net increase (decrease) in cash and cash equivalents - 44 44
Cash and cash equivalents - January 1 - 72 72
Cash and cash equivalents - December 31 $ - $ 117 $ 117
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (8 $ 33 $ 24
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation - 5 5
Changes in assets and liabilities:
(Increase) decrease in receivables (1 1 256
Increase (decrease) in payables 110 2 2
Total adjustments (1 9 8
Net cash flows provided (used) by operating activities $ (10,008) $ 43 $ 33
Noncash financing activities:
Capital contributions $ - $ 3
120
INTERNAL SERVICE FUNDS
The City's Internal Service Funds included in this section are:
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 and repair costs are charged to the departments as incurred. Replacement
costs are charged to the departments over the estimated useful life of the vehicles and
equipment.
Public Employees Retirement Fund - This fund accounts for certain health care insurance
benefits for City employees who retire before age 65. Substantially all of the City's full -
time police and fire employees and all other full -time employees hired before July 1,
1989 may be eligible for those benefits from the time they qualify for an unreduced
PERA pension until they reach age 65 or become eligible for Medicare. In the event that
future costs would exceed earnings, other funds would be charged for the costs associated
with their employees.
Public Employees Compensated Absences Fund - This fund accounts for payment of
unused vacation and sick leave time and the allocation of such costs to user departments.
121
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET ASSETS Statement 38
INTERNAL SERVICE FUNDS
December 31, 2009
Total
Central EE Retirement EE Comp Internal
Garage Benefit Absences Service
ASSETS
Current assets:
Cash and cash equivalents $ 4 $ 1 $ 1 $ 6
Receivables:
Accounts - net 51 2 - 54
Interfund receivable 33 - - 33
Inventories 26 - - 26
Total current assets 4 1 1 6
Noncurrent assets:
Capital assets:
Land improvements 166 - - 166
Machinery and equipment 7 - - 7
Total capital assets 7 - - 7
Less: Allowance for depreciation (3 - - (3
Net capital assets 3 - - 3
Total assets 8 1 1 10
LIABILITIES
Current liabilities:
Accounts payable 168 - - 168
Accrued salaries payable 12 - - 12
Compensated absences payable - current - - 109 109
Total current liabilities 180 - 109 289
Noncurrent liabilities:
Compensated absences payable- long -term - - 982 982
Net OPEB obligation - 290 - 290
Total noncurrent liabilities - 290 982 1
Total liabilities 180 290 1 1
NET ASSETS
Invested in capital assets 3 - - 3
Unrestricted 3 1 - 5
Total net assets $ 7 $ 1 $ - $ 8
122
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND Statement 39
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2009
Total
Central EE Retirement EE Comp Internal
Garage Benefit Absences Service
OPERATING REVENUES
Sales and user fees $ 1 $ 65 $ 197 $ 1
OPERATING EXPENSES
Personal services 335 311 105 752
Supplies 363 - - 363
Other services 131 - - 131
Insurance 44 - - 44
Utilities 1 - - 1
Depreciation 654 - - 654
Total operating expenses 1 311 105 1
Operating income (loss) (158,739) (246,027) 91 (312,899)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - 15 - 15
Investment earnings (net of market value adjustment) 39 13 9 62
Gain (loss) on sale of capital assets 40 - - 40
Other revenue 26 - - 26
Total nonoperating revenues (expenses) 107 28 9 145
Income (loss) before transfers (51,302) (217,339) 101 (167,543)
Transfers in 15 - - 15
Change in net assets (36,014) (217,339) 101 (152,255)
Net assets - January 1 7 1 (101,098) 9
Net assets - December 31 $ 7 $ 1 $ - $ 8
123
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 40
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2009
Total
Central EE Retirement EE Comp Internal
Garage Benefit Absences Service
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided $ 1 $ 65 $ 197 $ 1
Payments to suppliers (405,560) - - (405,560)
Payments to employees (332,340) (169,852) (89,648) (591,840)
Miscellaneous revenue 26 15 - 42
Net cash flows provided (used) by
operating activities 623 (88,900) 107 641
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 15 - - 15
Interfund receivable (33,422) - - (33,422)
Net cash flows provided (used) by
noncapital financing activities (18,134) - - (18,134)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (911,922) - - (911,922)
Proceeds from sale of capital assets 97 - - 97
Net cash flows provided (used) by capital
and related financing activities (814,722) - - (814,722)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 39 13 9 62
Net increase (decrease) in cash and cash equivalents (169,735) (75,572) 116 (128,609)
Cash and cash equivalents - January 1 4 1 974 6
Cash and cash equivalents - December 31 $ 4 $ 1 $ 1 $ 6
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $ (158,739) $ (246 $ 91 $ (312,899)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 654 - - 654
Changes in assets and liabilities:
(Increase) decrease in receivables (37,628) (1 - (39,242)
(Increase) decrease in inventories (1 - - (1
Increase (decrease) in payables 137 - - 137
Increase (decrease) in accrued expenses 3 143 15 161
Other nonoperating income 26 15 - 42
Total adjustments 781 157 15 954
Net cash provided (used) by operating activities $ 623 $ (88,900) $ 107 $ 641
Noncash financing activities:
Gain on sale of assets $ 40 $ - $ -
124
STATISTICAL SECTION
This part of the City of Brooklyn Center's comprehensive annual financial report presents
detailed information as a context for understanding the financial statements, note
disclosures, and supplementary information. This section includes information for the
primary government, including any blended component units.
Contents Page
Financial Trends 126
These tables contain trend information to help the reader understand
the City's financial performance by placing it in historical perspective.
Revenue Capacity 140
These tables contain information to help the reader assess the City's
most significant "own - source " revenue, property taxes.
Debt Capacity 146
These tables present information to help the reader assess the
affordability of the government's current levels of outstanding debt
and the City's ability to issue debt in the future.
Demographic and Economic Information 152
These tables offer demographic and economic indicators to help the
reader understand the environment within which the City's financial
activities take place.
Operating Information 154
These tables contain service and infrastructure data to help the reader
understand how the City's financial report relates to the services the
City provides and the activities it performs.
Sources: unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
125
CITY OF BROOKLYN CENTER, MINNESOTA
NET ASSETS BY COMPONENT
Last seven fiscal years
(accrual basis of accounting)
(Unaudited)
2003 2004 2005
Governmental activities
Invested in capital assets, net of
related debt $ 14 $ 12 $ 25
Restricted 14 39 29
Unrestricted 17 3 652
Total governmental activities net assets $ 47 $ 55 $ 55
Business -type activities
Invested in capital assets $ 37 $ 36 $ 38
Unrestricted 6 7 7
Total business -type activities net assets $ 44 $ 43 $ 45
Primary government
Invested in capital assets, net of
related debt $ 52 $ 48 $ 64
Restricted 14 39 29
Unrestricted 24 10 7
Total primary government net assets $ 91 $ 98 $ 101
Note: Data for 2000 -2002 is not available; the City did not prepare government -wide financial statements on an accrual basis for those years.
126
Table 1
2006 2007 2008 2009
$ 25 $ 31 $ 31 $ 33
27 28 31 29
4 4 690 4
$ 57 $ 64 $ 63 $ 66
$ 40 $ 40 $ 42 $ 42
7 9 10 8
$ 48 $ 50 $ 53 $ 51
$ 65 $ 70 $ 72 $ 75
27 28 31 29
13 15 12 13
$ 105 $ 114 $ 117 $ 117
127
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET ASSETS - GOVERNMENTAL ACTIVITIES
Last seven fiscal years
(accrual basis of accounting)
(Unaudited)
2003 2004 2005
Expenses
General government $ 2 $ 2 $ 2
Public safety 7 7 7
Public works 2 1 3
Community services 225 67 86
Parks and recreation 2 2 2
Economic development 1 1 3
Interest on long -term debt 922 1 1
Total expenses 17 17 21
Program Revenues
Charges for services:
General government 227 927 960
Public safety 951 687 1
Parks and recreation 624 618 681
Other activities 24 23 9
Operating grants and contributions 1 933 855
Capital grants and contributions 1 2 2
Total program revenues 4 5 5
Net revenue /(expense) (13,029,583) (11,956,870) (16,008,216)
General Revenues and Transfers
Taxes:
Property 10 10 11
Tax increments 3 4 3
Lodging taxes 661 656 710
Unrestricted grants and contributions 1 923 577
Investment earnings 426 491 1
Gain on disposal of capital asset 13 29 31
Miscellaneous 588 660 -
Transfers 100 2 (1,545,893)
Total general revenues and transfers 17 19 16
Change in Net Assets $ 4 $ 7 $ 307
128
Table 2
Page 1 of 3
2006 2007 2008 2009
$ 2 $ 2 $ 3 $ 3
8 8 8 9
2 2 2 2
123 74 72 71
2 2 2 2
2 3 3 2
1 1 1 1
19 21 22 21
947 902 1 1
800 847 780 1
665 692 754 740
423 290 151 26
748 818 1 1
2 2 2 1
5 6 6 5
(13,678,146) (15,304,405) (16,168,110) (15,813,200)
11 12 12 12
2 2 2 3
738 706 619 591
702 1 607 1
1 1 903 309
23 88 73 40
186 (273,070) (1 32
17 18 15 18
$ 4 $ 3 $ (285,828) $ 2
129
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET ASSETS - BUSINESS -TYPE ACTIVITIES
Last seven fiscal years
(accrual basis of accounting)
(Unaudited)
2003 2004 2005
Expenses
Municipal liquor 724 939 978
Golf course 290 271 273
Earle Brown Heritage Center 2 2 2
Water utility 1 222 1
Sanitary sewer 2 165 2
Storm drainage 838 1 899
Recycling and refuse 223 2 254
Street light utility 147 756 213
Total expenses 8 8 9
Program Revenues
Charges for services:
Municipal liquor 853 991 1
Earle Brown Heritage Center 1 1 1
Water utility 1 1 1
Sanitary sewer 2 2 2
Storm drainage 1 1 1
Other activities 706 707 706
Total program revenues 8 9 9
Net revenue /(expense) 426 687 493
General Revenues and Transfers
Investment earnings 82 102 199
Other 241 117 -
Transfers (100,000) (2 1
Total general revenues and transfers 223 (1 1
Change in Net Assets $ 650 $ (1 $ 2
130
Table 2
Page 2 of 3
2006 2007 2008 2009
970 1 1 1
282 313 304 323
2 2 2 2
1 1 1 3
3 2 3 3
1 1 1 1
245 257 265 276
161 191 182 220
10 10 10 12
1 1 1 1
2 2 1 1
1 2 2 2
3 3 3 3
1 1 1 1
714 732 763 770
10 11 11 10
535 1 790 (1
337 406 243 87
(186,675) 273 1 (32,697)
150 679 1 54
$ 686 $ 1 $ 2 $ (1
131
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET ASSETS - TOTAL
Last seven fiscal years
(accrual basis of accounting)
(Unaudited)
2003 2004 2005
Expenses
Governmental activities $ 17 $ 17 $ 21
Business -type activities 8 8 9
Total expenses 26 25 31
Program Revenues
Governmental activities 4 5 5
Business -type activities 8 9 9
Total program revenues 13 14 15
Net revenue /(expense) (12,602,604) (11,269,254) (15,514,795)
General Revenues and Transfers
Governmental activities 17 19 16
Business -type activities 223 (1 1
Total general revenues and transfers 17 18 18
Change in Net Assets $ 4 $ 6 $ 2
Note: Data for 2000 -2002 is not available; the City did not prepare government -wide financial statements on an accrual basis for those years.
132
Table 2
Page 3 of 3
2006 2007 2008 2009
$ 19 $ 21 $ 22 $ 21
10 10 10 12
29 31 32 34
5 6 6 5
10 11 11 10
16 17 17 16
(13,142,632) (14,292,947) (15,377,522) (17,774,527)
17 18 15 18
150 679 1 54
18 19 17 18
$ 4 $ 4 $ 2 $ 790
133
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134
CITY OF BROOKLYN CENTER, MINNESOTA
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE Table 3
Last seven fiscal years
(accrual basis of accounting)
(Unaudited)
Property Tax Lodging
Tax Increments Tax Total
2003 $ 10 $ 3 $ 661 $ 14
2004 10 4 656 15
2005 11 3 710 15
2006 11 2 738 15
2007 12 2 706 15
2008 12 2 619 15
2009 12 3 591 17
Note: Data for 2000 -2002 is not available; the City did not prepare government -wide financial statements on an accrual basis for those years
135
CITY OF BROOKLYN CENTER, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
2000 2001 2002 2003
General Fund
Reserved $ 105 $ 105 $ 173 $ 110
Unreserved 7 7 7 7
Total general fund $ 7 $ 7 $ 7 $ 8
All other governmental funds
Reserved $ 7 $ 7 $ 7 $ 7
Unreserved, reported in:
Special revenue funds 1 3 4 6
Capital project funds 7 5 1 2
Total all other governmental funds $ 16 $ 16 $ 13 $ 15
136
Table 4
2004 2005 2006 2007 2008 2009
$ 106 $ 11 $ 500 $ 700 $ 21 $ 27
6 7 7 7 7 8
$ 6 $ 7 $ 7 $ 7 $ 7 $ 8
$ 13 $ 5 $ 5 $ 11 $ 9 $ 8
25 24 22 11 10 9
4 3 4 3 4 3
$ 43 $ 33 $ 32 $ 26 $ 24 $ 21
137
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
2000 2001 2002 2003
Revenues
Property taxes $ 8 $ 7 $ 10 $ 10
Tax increments 3 3 3 3
Franchise fees - - - -
Lodging taxes 836 826 717 661
Special assessments 1 1 1 1
Licenses and permits 632 788 823 827
Intergovernmental 7 5 7 3
Charges for services 779 688 575 709
Fines and forfeits 180 230 278 290
Investment earnings 798 2 648 317
Miscellaneous 125 150 267 607
Total revenues 24 23 25 21
Expenditures
General government 2 2 2 2
Public safety 5 5 6 6
Public works 2 2 1 2
Community services 95 106 103 91
Parks and recreation 2 2 2 2
Economic development 2 2 2 1
Nondepartmental 419 372 366 331
Administrative services reimbursement (795,737) (767,504) (596,541) (607,221)
Capital outlay 7 6 9 1
Debt service
Principal 3 2 3 3
Interest 1 1 1 905
Other charges 13 8 28 26
Total expenditures 27 25 28 20
Revenues over (under) expenditures (3 (1 (3 1
Other financing sources (uses)
Issuance of debt 735 730 - 1
Discount on issuance of debt - - - (8
Premium on issuance of debt - - - -
Sale of capital assets 194 572 474 73
Transfers in 5 4 4 3
Transfers out (5 (3 (4 (3
Refunded bonds redeemed - - - -
Total other financing sources (uses) 1 1 674 1
Net change in fund balances $ (2 $ (233,214) $ (2 $ 2
Debt service as a percentage of
noncapital expenditures 23.05% 18.41% 16.81% 21.88%
138
Table 5
2004 2005 2006 2007 2008 2009
$ 10 $ 11,641,177 $ 11 $ 12 $ 12 $ 12
3 4 2 2 2 3
612 662 658 658 643 656
656 710 738 706 619 591
1 1 1 1 1 1
678 675 722 673 643 616
3 2 2 3 2 2
711 754 722 705 761 1
254 253 256 291 302 340
385 1 1 1 733 247
609 427 477 404 449 370
22 24 22 24 22 24
2 2 2 2 3 3
7 7 7 7 8 8
1 2 1 2 2 2
67 86 123 74 72 71
1 2 2 2 2 2
1 2 1 5 7 2
333 315 363 354 301 313
(784,084) (754,085) (529,362) (744,590) (802,775) (859,456)
4 8 5 4 4 2
3 2 3 2 2 4
881 1 1 1 1 1
126 23 53 12 73 15
23 27 25 28 31 27
(629,126) (3 (2 (4 (9 (2
25 - 1 - 6 -
(96,503) - (445) - (28,178) -
- - - - 1 -
5 2 2 5 1 3
(3 (2 (2 (6 (1 (3
- (7 - (529,138) - -
27 (7 2 (666,510) 7 550
$ 27 $ (10,387,818) $ (819,247) $ (5 $ (1 $ (2
24.89% 18.37% 19.14% 15.90% 14.65% 22.92%
139
CITY OF BROOKLYN CENTER, MINNESOTA
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
(Unaudited)
2000 2001 2002 2003
Real Property:
Residential $ 9 $ 8 $ 8 $ 9
Nonresidential 11 14 9 9
Area -wide allocation 1 746 635 875
Personal property 437 452 262 273
Less:
Tax increment districts 2 3 2 2
Total Assessed Tax Capacity 20 20 16 17
Direct Tax Rate 1 34.645 35.996 58.901 52.792
Estimated Market Value 1 1 1 1
Total Assessed Tax Capacity as a percentage
of Estimated Market Value 1.73% 1.58% 1.09% 1.04%
1 Beginning in 2002, the State of Minnesota significantly reduced state aids to the City and allowed these amounts to be included
in the propery tax levy.
Source: City Assessing Department
140
Table 6
2004 2005 2006 2007 2008 2009
$ 10 $ 12 $ 13 $ 15 $ 16 $ 14
9 9 9 9 9 10
1 1 1,161,174 1 2 2
281 294 298 283 291 283
3 3 2 2 2 2
18 20 22 24 25 25
53.693 51.723 48.069 45.366 45.081 49.138
1,840,115,300 1 2 2 2 2
1.01% 1.03% 1.10% 1.14% 1.18% 1.21%
141
CITY OF BROOKLYN CENTER, MINNESOTA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
(Unaudited)
Overlapping Rates
Metro
City 1 County Dist 11 Dist 279 Dist 281 Dist 286 Districts
2000 35.369 39.655 51.792 53.284 48.492 44.356 6.039
2001 36.740 37.679 52.224 56.784 46.678 47.139 5.830
2002 58.901 50.789 29.082 30.092 30.213 26.338 3.537
2003 54.021 50.607 26.941 35.042 29.179 49.817 3.825
2004 53.693 47.324 21.050 23.709 34.258 39.892 3.502
2005 51.723 44.172 21.492 24.336 29.989 36.159 3.304
2006 48.069 41.016 20.046 21.815 28.489 39.781 2.924
2007 45.366 39.110 19.353 23.758 28.750 36.154 2.671
2008 45.081 38.571 16.983 19.710 27.243 37.519 2.562
2009 49.138 40.413 18.263 21.033 27.214 43.163 2.579
Source: City Assessing Department and Hennepin County Property Tax Services
1 The City's direct rate is an operating rate only.
z Watershed levy was levied in 2006, 2008, and 2009 in schools districts 279 and 281, and parts of school districts 11 and 286.
142
Table 7
Total Direct and Overlapping Rates
Other District 11 District 11 District District District 286 District 286
Districts Watershed L no watershed with watershed 279 281 no watershed with watershed
3.111 - 135.966 - 137.458 132.666 128.530 -
2.294 - 134.767 - 139.327 129.221 129.682 -
3.844 - 146.153 - 147.163 147.284 143.409 -
5.161 - 140.555 - 148.656 142.793 163.431 -
3.986 - 129.555 - 132.214 142.763 148.397 -
4.078 - 124.769 - 127.613 133.266 139.436 -
4.074 0.073 116.129 116.202 117.971 124.645 135.864 13 5.93 7
4.639 - 111.139 - 115.544 120.536 127.940 -
4.835 0.265 108.032 108.297 111.024 118.557 128.568 128.833
4.575 0.047 114.968 115.015 117.785 123.966 139.868 139.915
143
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 8
Current Year and Nine Years Ago
(Unaudited)
2009 2000
Percentage of Percentage of
Net Tax Total Tax Net Tax Total Tax
Taxpayer Capacity Rank Capacity Value Capacity Rank Capacity Value
Luther Properties $ 484 1 1.92% $ - -
Twin Lakes LLC 438 2 1.74% - -
Brooks Mall Properties LLC 414 3 1.64% 768 1 3.77%
Lang- Nelson 280 4 1.11% 504 4 2.47%
BCC Associates, LLC 267 5 1.06% - -
Regal Cinemas, Inc. 245 6 0.97% - -
CSM Corporation 234 7 0.93% 293 7 1.44%
Medtronic, Inc. 225 8 0.89% - -
Brookdale Corner, LLC 216 9 0.86% 258 9 1.27%
Target 165 10 0.66% 693 2 3.40%
Prudential Insurance Co. - - 623 3 3.06%
Ryan Construction Co. - - 485 5 2.38%
Bradley Real Estate Inc. - - 294 6 1.44%
Sears - - 270 8 1.33%
AMB Property - - 187 10 0.92%
Totals $ 2 11.78% $ 4,3 80,226 21.48%
Source: City Assessing Department
144
CITY OF BROOKLYN CENTER, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 9
Last ten fiscal years
(Unaudited)
Collected within the
Certified Adjusted Fiscal Year of the Levy Collections in Total Collections to Date
Property Property Percentage of Subsequent Precentage
Tax Levy Adjustments * Tax Levy Amount Adjusted Levy Years Amount to Date
2000 $ 8,100,268 $ (15,259) $ 8 0 5 0 9 $ 8,04402 99.5% $ 40,207 $ 8 0 5 0 9 100.0%
2001 8,420,720 (48,553) 8,372,167 8,132,527 97.1% 239,640 8,372,167 100.0%
2002 10,442,518 (925,619) 9,516,899 9,262 97.3% 254,258 9,516 100.0%
2003 10,355 (828,621) 9 9 97.4% 245 9,525,628 100.0%
2004 10 (806,306) 9,973,115 9,504,581 95.3% 455,728 9,960,309 99.9%
2005 11 (743,712) 10 10 98.4% 157,301 10 99.9%
2006 11,627,768 (674,470) 10 10 92.0% 231,011 10,928,649 94.0%
2007 11,958,743 (590,700) 11,368,043 11,070,387 92.6% 253 11,323,424 94.7%
2008 12,437,093 (577,797) 11,859,296 11,577,739 93.1% 190 11 94.6%
2009 12,893,208 (614,032) 12,279,176 M983,738 92.9% - M983,738 92.9%
Source: Hennepin County Property Tax Division
* - Adjustments for subsequent abatements. Beginning in 2002, adjustments also include Market Value Homestead Credit.
CITY OF BROOKLYN CENTER, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE Table 10
Last ten fiscal years
(Unaudited)
Business -Type
Governmental Activities Activities
General Tax Storm Sewer Less: Percentage
Obligation Increment Improvement Revenue Total Debt Service Bonded of Personal Per
Bonds Bonds Bonds Bonds Debt Fund Balance Debt Income 1 Capita 1
2000 $ 8 $ 9,140,000 $ 6,120,000 $ 1 $ 25,07000 $ 4,73609 $ 20,333,391 1.62% $ 697
2001 8,10500 7,690,000 6,150,000 86000 220500 5,472,514 17,332 1.37% 594
2002 7,42500 6,150,000 5,37000 66000 1905 5,741,191 13 1.09% 475
2003 6,72000 4,50500 5,70500 45000 17,380,000 5,321,277 12 0.92% 416
2004 11,025,000 22,44500 5 230 39 13,230,540 26 1.88% 930
°1 2005 5,340 19 4 - 29,36500 4 25,206,393 1.78% 903
2006 4 18,305 5 - 27,95000 4 23,747,024 1.61% 851
2007 3 17,255 4 - 25 6 1805 1.19% 670
2008 3 20,560 5,690,000 - 29 5,187,263 24 * * 872
2009 2 0 5 0 0 17 4,92500 - 25 4,258,770 21 * * 716
1 - See Table 15, Demographics and Economic Statistics for personal income and population data.
* * - personal income data not available for these years
CITY OF BROOKLYN CENTER, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 11
Last ten fiscal years
(Unaudited)
Less: Amounts Percentage of
General Available in Net General Estimated
Obligation Debt Service Obligation Market Value Per
Bonds Fund Debt of Property Capita
2000 $ 7 $ 775 $ 6 0.54% $ 219
2001 6 831 5 0.45% 203
2002 6 871 5 0.37% 187
2003 5 907 4 0.30% 170
2004 10 5 4 0.25% 157
2005 5 1 3 0.20% 142
2006 4 1 3 0.17% 120
2007 3 1 2 0.13% 97
2008 3 1 2 0.09% 74
2009 2 1 1 0.07% 50
147
CITY OF BROOKLYN CENTER, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 12
as of December 31, 2009
(Unaudited)
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable 1 Debt
Overlapping debt:
School Districts:
No. 11 Anoka $ 150 1.40% $ 2
No. 279 Osseo 168 5.10% 8
No. 281 Robbinsdale 181 5.20% 9
No. 286 Brooklyn Center 32 100.00% 32
Metropolitan Council 27 0.70% 189
Metropolitan Transit District 202 0.80% 1
Hennepin County 633 1.60% 10
Hennepin Regional RR Authority 43 1.60% 702
Hennepin County Park Reserve District 80 2.10% 1
Total overlapping debt $ 1 67
City of Brooklyn Center direct debt 2 1
Total direct and overlapping debt $ 68
Source: City Finance Department, Hennepin County, and Springsted Financial Advisors.
1 The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining
the portion of each entity's tax capacity that is within the City's boundaries and dividing it by that entity's total tax capacity.
2 Includes only general obligation debt which is repaid through property taxes, net of amounts available.
148
CITY OF BROOKLYN CENTER, MINNESOTA
LEGAL DEBT INFORMATION Table 13
Last ten fiscal years
(Unaudited)
Total net debt
applicable to the limit
Total net debt as a percentage of
Debt Limit applicable to limit Legal debt margin debt limit
2000 $ 23 $ 6 $ 16 27.38%
2001 25 5 19 23.36%
2002 27 5 21 19.93%
2003 29 4 24 16.78%
2004 32 4 27 13.99%
2005 36 3 32 11.08%
2006 39 3 35 8.57%
2007 42 2 39 6.42%
2008 65 2 63 3.16%
2009 62 1 61 2.33%
Legal Debt Margin Calculation for Fiscal Year 2009
Taxable Market Value $ 2
Debt limit (3% of Taxable Market Value) 62
Debt applicable to limit
Net general obligation bonds 1
Legal debt margin $ 61
149
CITY OF BROOKLYN CENTER, MINNESOTA
PLEDGED - REVENUE COVERAGE
Last ten fiscal years
(Unaudited)
Storm Sewer Bonds
Storm Less: Net
Sewer Operating Available Debt Service
Charges Expenses Revenue Principal Interest Coverage
2000 $ 1 $ 307 $ 767 $ 180 $ 59 3.21
2001 1 327 802 190 49 3.34
2002 1 662 714 200 40 2.98
2003 1 809 455 210 29 1.90
2004 1 756 520 220 18 2.18
2005 1 1 207 230 6 0.88
2006 - - - - - -
2007 - - - - - -
2008 - - - - - -
2009 - - - - - -
150
Table 14
Special Assessment Bonds Tax Increment Bonds
Special Tax
Assessment Debt Service Increment Debt Service
Collections Principal Interest Coverage Collections Principal Interest Coverage
$ 994 $ 535 $ 231 1.30 $ 3 $ 1 $ 595 1.70
1 700 252 1.08 3 1 519 1.89
928 780 249 0.90 2 1 433 1.46
1 870 242 1.04 3 1 340 1.58
1 1 218 1.15 3 1 286 1.75
1 990 197 0.89 3 770 729 2.38
1 1 167 0.89 1 1 887 0.85
884 900 162 0.83 1 1 847 0.90
816 980 145 0.73 1 1 804 1.04
1 765 166 1.26 2 2 922 0.64
151
CITY OF BROOKLYN CENTER, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15
Last ten fiscal years
(Unaudited)
School Enrollments
Per Capita No. 286
Personal Personal Unemployment No. 11 No. 279 No. 281 Brooklyn
Population Income Income Rate Anoka Osseo Robbinsdale Center
2000 29 $1 $ 43 3.0% 41 22 13 1
2001 29 1 43 4.2% 41 22 13 1
2002 29 1 43 5.2% 41 21 13 1
2003 29 1 45 5.9% 41 21 13 1
2004 29 1 48 5.6% 41 21 16 1
2005 28 1 50 4.8% 41 21 13 1
2006 27 1 52 4.6% 41 22 13 1
2007 27 1 56 5.6% 40 21 12 1
2008 27 * * * * 7.6% 40 21 12 2
2009 29 ** ** 8.7% 39 20 11 2
Sources: Population - Metropolitan Council
Personal income - Bureau of Economic Analysis
Unemployment rate - Minnesota Department of Employment and Economic Development
School Enrollments - Minnesota Department of Education
* * - personal income data not available for these years
152
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL EMPLOYERS Table 16
Current Year and Nine Years Ago
(Unaudited)
2009 2000
Percentage of Percentage of
Total City Total City
Employer Employees Rank Employment Employees Rank Employment
Brookdale Center 1 1 13.89% 1 1 10.85%
Promeon, Division of Medtronics 1 2 9.87% 300 3 1.91%
Independent School District #286 300 3 2.19%
Cub Foods 160 4 1.17%
City of Brooklyn Center 156 5 1.14% 350 2 2.23%
Target 140 6 1.02%
TCR Corporation 140 7 1.02% 175 5 1.12%
Best Buy 100 8 0.73%
Kohl's 100 9 0.73%
Nations Care Link 100 10 0.73%
Hoffman Engineering 270 4 1.72%
Ault, Inc. 160 6 1.02%
Graco, Inc. 100 7 0.64%
Cass Screw Machine Products 125 8 0.80%
Precision, Inc. 100 9 0.64%
Haiwatha Rubber Company 85 10 0.54%
Totals 4 32.51% 3 21.48%
Source: Minnesota Department of Employment and Economic Development
153
CITY OF BROOKLYN CENTER, MINNESOTA
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Table 17
Last ten fiscal years
(Unaudited)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
General government
Administrative 6.4 6.5 6.5 6.5 6.0 6.0 6.0 6.0 7.0 7.0
Elections 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance 7.0 7.0 7.0 6.0 6.0 6.0 6.0 6.0 5.0 5.0
Assessor 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Government buildings 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Information technology 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Total general government 24.4 24.5 23.5 23.5 23.0 23.0 23.0 23.0 23.0 23.0
Public safety
Police
Officers 42.0 42.0 42.0 42.0 42.0 42.0 42.0 43.0 46.0 46.0
Civilians 17.0 16.0 16.0 15.0 15.0 15.0 15.0 12.0 12.0 12.0
Fire 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0
Building inspection 5.0 5.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Code enforcement - - - - - - - - 2.0 5.0
Total public safety 65.0 64.0 63.0 62.0 62.0 62.0 63.0 61.0 66.0 69.0
Public works
Engineering 10.0 10.0 10.0 8.0 7.0 7.0 6.0 6.0 5.0 6.0
Streets 10.9 10.9 11.0 11.0 10.0 9.0 10.0 10.0 11.0 10.0
Total public works 20.9 20.9 21.0 19.0 17.0 16.0 16.0 16.0 16.0 16.0
Parks and recreation
Administration 6.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0
Community center 5.5 5.5 5.0 5.0 3.0 3.0 3.0 3.0 3.0 3.0
Park maintenance 10.0 10.0 10.0 10.0 8.0 8.0 7.0 7.0 7.0 7.0
Total park and recreation 21.5 21.5 21.0 20.0 17.0 17.0 16.0 16.0 16.0 16.0
Economic development 4.6 4.5 4.5 4.5 4.0 4.0 4.0 4.0 4.0 4.0
Municipal liquor 4.0 4.0 3.0 3.0 3.0 3.0 3.0 4.0 4.0 4.0
Golf course 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Earle Brown Heritage Center 13.0 13.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0
Water 5.0 5.0 5.0 5.0 5.0 5.0 5.3 5.3 5.3 5.3
Sanitary sewer 2.0 2.0 2.0 2.0 2.0 2.0 2.3 2.3 2.3 2.3
Storm sewer - - - - - 1.0 1.4 1.4 1.4 1.4
Central garage 5.1 5.1 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Total 166.5 165.5 160.0 156.0 150.0 150.0 151.0 150.0 155.0 158.0
Source: City Annual Budget documents
154
CITY OF BROOKLYN CENTER, MINNESOTA
OPERATING INDICATORS BY FUNCTION Table 18
Last ten fiscal years
(Unaudited)
Function 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Police
Violent Crimes 137 133 136 134 165 174 191 210 192 166
Serious Crimes 2,150 2,057 1,915 2,150 1,893 1,951 2,054 1,992 2,049 1,696
Total Calls for Service 23,543 26,501 25,644 25,945 26,328 26,738 28,644 34,185 36,923 44,152
Fire
Fires /All other calls 695 658 681 617 545 692 697 677 684 688
Medical calls 299 305 373 331 279 212 326 386 419 538
Fire inspections performed 214 216 133 100 98 45 0 0 106 105
Streets
Total miles 105.53 105.53 105.53 105.53 105.53 105.53 105.78 105.78 105.78 105.78
Miles of streets reconstructed 4.20 3.40 7.80 1.90 2.80 4.60 2.50 4.20 4.15 2.64
Parks and recreaton
Community Center Admissions 61,836 67,476 42,873 66,427 62,458 59,288 6100 61,022 60,323 61,272
v Acres of park maintained 527 527 527 527 527 527 527 527 527 527
Municipal liquor
Number of stores 3 2 1 1 2 2 2 2 2 2
Sales (in thousands) $3,585 $3,552 $3,436 $3,408 $4,027 $4,610 $5,159 $5,475 $5,485 $5,610
Golf course
Rounds sold 34,426 29,448 21,072 27,010 22,847 20,780 21,100 1500 1502 14,040
Earle Brown Heritage Center
Bookings 813 757 579 572 577 579 611 570 522 421
Functions 2,129 2,145 2,105 1,527 1,734 1,725 1,870 1,720 1,412 1,178
Inn occupancy (average)' 46.70% 23.46% 7.23% 9.53% 8.14% 8.58% 11.55% 8.16% 4.00% 0.00%
Water
Connections 8,943 8,905 8,934 8,949 8,963 8,938 8,904 8,997 8,986 8,990
Miles of water mains 114.40 114.40 114.62 114.82 114.82 118.25 120.50 121.80 121.80 121.80
Average daily consumption 3,715,142 3,63 8,490 3,127,214 3,723,769 3,551,104 3,697,790 309,903 3,621,122 3,550,126 3,73302
Sanitary sewer
Connections 8,774 8,764 8,786 8,798 8,799 804 807 8,793 8,837 8,837
Miles of sanitary sewer 105.51 105.51 105.61 105.61 105.61 105.61 105.61 105.61 105.61 105.61
Source: Various City departments
Police indicators for current year are preliminary
I- in 2002 the Heritage Center Inn ceased daily occupancy and moved to a retreat concept with an 8 room minimum. In 2009, the Heritage Center Inn ceased operations.
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION Table 19
Last ten fiscal years
(Unaudited)
Function 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Public safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Patrol units
Marked squads 10 10 10 7 7 8 8 8 9 9
Other vehicles 16 21 15 13 16 16 16 16 14 18
Fire
Stations 1 2 2 2 2 2 2 2 2 2
Fire trucks 7 7 7 7 7 7 7 7 7 7
Public works
Streets (miles) 112.35 112.35 112.35 112.35 112.35 112.35 112.60 112.60 112.60 112.60
Heavy duty trucks (snow plows) 10 11 11 12 13 12 13 13 13 13
Parks and recreation
Parks acreage 527 527 527 527 527 527 527 527 527 527
Trails (miles) 11.2 11.2 11.2 11.2 11.2 21.6 21.6 21.6 21.6 21.6
Community centers 1 1 1 1 1 1 1 1 1 1
Ground maintenance equipment 18 18 13 13 13 13 13 13 15 15
Other vehicles /equipment 20 21 12 11 14 14 14 14 15 14
Water
Water mains (miles) 114.40 114.40 114.62 114.82 114.82 118.25 120.50 121.80 121.80 121.80
Wells 9 9 9 9 9 9 9 9 9 9
Sewer
Sanitary sewers (miles) 105.51 105.51 105.61 105.61 105.61 105.61 105.61 105.61 105.61 105.61
Lift Stations 10 10 10 10 10 10 10 10 10 10
Storm sewers (miles) 74.20 74.20 74.20 74.20 74.20 74.20 74.20 74.20 74.20 74.20
Source: City capital asset records