HomeMy WebLinkAboutCAFR-2012CO
OMPREEHENSI
CITY
DEPARTM
(Mem
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IVE AN
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FINA
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NNUAL
OF THE
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City Manager
Prepared By
ANCE DIVIS
FISCAL & S
Daniel Jorde
Director
Clara Hilger
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HE YEAR
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Finance Offi
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i
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal 1
Principal Officials 7
Organizational Chart 8
Certificate of Achievement 9
FINANCIAL SECTION
Independent Auditor’s Report 11
Management’s Discussion and Analysis 15
Basic Financial Statements:
Statement of Net Position 25
Statement of Activities 26
Governmental Funds
Balance Sheet 30
Reconciliation of the Balance Sheet of the Governmental Funds to the
Statement of Net Position 33
Statement of Revenues, Expenditures, and Changes in Fund Balances 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities 37
Proprietary Funds
Statement of Net Position 38
Statement of Revenues, Expenses, and Changes in Net Position 40
Statement of Cash Flows 42
Notes to the Financial Statements 45
Required Supplementary Information:
Budgetary Comparison Schedule-General Fund 77
Budgetary Comparison Schedule-Tax Increment District No. 3 82
Schedule of Funding Progress – Other Post Employment Benefits 83
Note to Required Supplementary Information 84
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds
Combining Balance Sheet 87
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 89
Combining Balance Sheet-Nonmajor Special Revenue Funds 90
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances-Nonmajor Special Revenue Funds 92
ii
FINANCIAL SECTION (Continued)
Balance Sheet-Nonmajor Debt Service Funds 94
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Debt Service Funds 95
Combining Balance Sheet-Nonmajor Capital Project Funds 96
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Capital Project Funds 98
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Major Funds:
Debt Service Fund-G.O. Improvement Bonds 100
Capital Project Fund-Infrastructure Construction 101
Nonmajor Funds:
Special Revenue Fund-Housing and Redevelopment Authority 102
Special Revenue Fund-Economic Development Authority 103
Special Revenue Fund-Tax Increment District No. 4 104
Special Revenue Fund-Community Development Block Grant 105
Special Revenue Fund-City Initiatives Grant 106
Debt Service Fund-General Obligation Bonds 107
Debt Service Fund-Tax Increment Bonds 108
Capital Project Fund-Capital Improvements 109
Capital Project Fund-Municipal State Aid for Construction 110
Capital Project Fund-Street Reconstruction 111
Capital Project Fund-Technology 112
Nonmajor Enterprise Funds
Combining Statement of Net Position 114
Combining Statement of Revenues, Expenses and Changes in Net Position 115
Combining Statement of Cash Flows 116
Internal Service Funds
Combining Statement of Net Position 118
Combining Statement of Revenues, Expenses and Changes in Net Position 119
Combining Statement of Cash Flows 120
iii
STATISTICAL SECTION (unaudited)
Net Position by Component 122
Changes in Net Position 124
Governmental Activities Tax Revenue by Source 131
Fund Balances – Governmental Funds 132
Changes in Fund Balances – Governmental Funds 134
Assessed Tax Capacity and Estimated Actual Value of Taxable Property 136
Property Tax Rates – Direct and Overlapping Governments 138
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
Ratios of Outstanding Debt by Type 142
Ratios of General Bonded Debt Outstanding 143
Computation of Direct and Overlapping Governmental Activities Debt 144
Legal Debt Information 145
Pledged Revenue Coverage 146
Demographic and Economic Statistics 148
Principal Employers 149
Full Time City Government Positions by Function 150
Operating Indicators by Function 151
Capital Asset Statistics by Function 152
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City of Brooklyn Center
A Millennium Community
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.cityofbrooklyncenter.org
April 29, 2013
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, 2012.
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
opinion 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, often called the “Single Audit” report. That Single Audit report is
required for 2012 because the City received more than $ 500,000 in total federal
grants. It has been issued under separate cover.
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.
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 is responsible for the
daily operations of the City.
The City provides a full range of municipal services to its citizens. These include police
and fire protection and 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, an executive nine-hole 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 levy limit ceiling on that levy is
established from time to time by the Minnesota Legislature. Effective establishment of
this levy requires that a preliminary budget be prepared. The City Manager, with the
assistance of staff, prepares such a budget each year 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 meetings in each taxing jurisdiction. The City’s meeting includes
information about the budget, the property tax levy and the priorities of the City Council
for the coming year as reflected by the budget allocations proposed. Public comment is
received and considered at this meeting. 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 are reviewed and reprioritized each year.
2
Local Economy
Brooklyn Center is a mature, fully developed first ring suburb of Minneapolis. With its
affordable housing, excellent schools, beautiful parks, and convenient transportation
access it has the attributes to continue as 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 2010 Census estimates the
population for Brooklyn Center at 30,104. The number of housing units has decreased
from 11,704 in 1990 to an estimated 11,640 units in the 2010 Census. As in many
mature, first-ring suburbs there is a trend toward conversion of single family homes to
rental properties.
The total estimated taxable value of real and personal property within the City
decreased 13.3% for valuations used to calculate 2012 property tax payments.
Residential housing, which made up 50.1% of the 2012 tax capacity base, decreased
18.52% in value while the commercial and industrial portions of the tax base decreased
4.8% and 3.5% in value respectively. The disparity between changes in residential and
commercial/industrial property values is partially explained by the implementation of a
Homestead Market Value Exclusion (HMVE) replacing the Market Value Homestead
Credit (MVHC) program formerly provided by the State of Minnesota for homeowner
property tax relief. The old HMVC provided a credit against property taxes calculated
using full residential market value. The credit reduction of local property taxes was
then paid to each jurisdiction by the State. Under the new HMVE, the value of an
owner occupied residential property is now reduced prior to the calculation of property
taxes. In this way, homeowners continue to receive the benefit of reduced property
taxes and the State reduces its direct costs for MVHC payments. As a result, property
taxes formerly paid by the State in the form of MVHC relief payments are now paid by
the other property classifications of the local jurisdiction. The property tax burden
shifts from residential properties to commercial and industrial properties.
Residential foreclosures and vacant properties were another facet of the economic
outlook for the City in 2012. 197 residential properties in the City went to Sheriff’s Sale
during 2012 compared with 246 in 2011, down 19.9%. Vacant properties at the end of
2012 numbered 287, down 26.8% from the prior year’s 392. The foreclosure rate on
residential properties dropped to its lowest rate in six years at 2.5%
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: redevelopment and renewal of the commercial
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and industrial 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 $ 463,000 for 2012 fiscal year operations. In addition, the
City’s Earle Brown Heritage Center, a conference and event center, increased its sales
from 2011 to 2012 by 10.1 % and increased operating revenues for the same period by
15.3%.
The State of Minnesota has provided significant funding to local governments through
the Local Government Aid (LGA) program over the past three decades. Projected
funding shortfalls at the State budgetary level have affected the allocation and
distribution of LGA negatively. Because this State aid revenue stream has been volatile
and unreliable over a number of years, the City reduced its expectations of LGA
revenue to half of the legislatively allotted amount. While the full allotment was
actually received in each of those years the City Council found it prudent to adopt a
policy limiting dependence on such funding sources to 5.0% of the annual General Fund
budget.
Long Term Financial Planning
The City maintains a comprehensive Capital Improvement Plan to facilitate the
replacement of its aging infrastructure. When streets are reconstructed in this
program, aging water, sanitary and storm sewer infrastructure is also repaired or
replaced. These improvements are funded by a combination of general obligation
improvement bonds supported with special assessments against benefited properties
and cash from the capital projects funds and utility enterprise funds. About one
twenty-fifth of the City’s streets and utilities are reconstructed each year. It is expected
that this will be an ongoing process and the Plan is reviewed and amended as a part of
each budget cycle. In addition, cash flows for all funds providing financing for the Plan
are updated for cash flow projections during the 15 year timeframe of the Plan. The
Capital Improvements Plan projects completion of the first citywide round of
reconstruction of the streets and utilities throughout the entire community by 2021. An
additional benefit of these neighborhood projects has been the increased investment by
residents in their properties following reconstruction projects.
The development of utility rate models and of non-utility cash flow projection models
has improved the City’s ability to plan and generate cash for operations, scheduled
maintenance and capital improvements. A plan for the maintenance and upgrading of
the City’s buildings and facilities is being incorporated into spending plans for both
operational repairs and for large capital expenditure type improvements.
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Major Initiatives
Redevelopment continues to be the key to commercial and industrial tax base growth.
The City acquired and cleared 14 acres of property adjacent to the intersection of
Highway 100 and Interstate 94. This created a redevelopment site where 146,000
square feet of Class A office space was constructed. The building was opened in
February of 2012 as the regional headquarters of the Federal Bureau of Investigation
and provides in excess of 200 jobs.
Shingle Creek Crossing, formerly the Brookdale regional shopping mall, reached a
milestone in the redevelopment of the 80 acre site with the opening of a 183,000
square foot Wal-Mart store. The owners are working in concert with City officials to
develop the site with an additional sixteen pad sites for retail, restaurants and services.
The most recent activity includes the start of construction on three retail sites totaling
29,000 square feet as well as a 38,000 square foot LA Fitness facility. Included in the
plan is extensive landscaping and reorientation of Shingle Creek to incorporate this
important open water feature into the redeveloped property.
Luther automobile dealerships have invested a great deal into growing their Brooklyn
Center presence. Property on both sides of Brooklyn Boulevard from Interstate 694 to
69th avenue has been acquired and a major redevelopment has begun. The first phase,
completed in 2011, included the renovation of the Chevrolet dealership and expansion
of a GMC/Pontiac/Buick dealership already on the campus. The second phase,
substantially completed in 2012, included construction of two new dealerships on the
east side of the roadway, a 52,000 square foot Honda dealer and a 54,000 square foot
Toyota dealer. A third phase is expected to begin in 2013 with reconstruction of the old
Honda site as a Volkswagen dealership.
An 8.67 acre site in southwest Brooklyn Center was cleared of hazardous materials to
develop a new 90,000 square foot office/manufacturing/warehouse facility on the site
of the former Northwest Racquet Club. This project required the cooperation of the
City, Real Estate Recycling, Inc., Hennepin County and the State of Minnesota and was
completed in December of 2012.
Maranatha Conservative Baptist Care, Inc. began work to replace an existing single-
story 40 bed nursing care center with a new three-story 97 bed nursing care center and
add 38 unit senior independent living facility to the currently existing 65 units. This two
phase project is expected to be completed within three to five years.
Relevant Financial Policies
The City of Brooklyn Center includes in its Financial Policies a requirement that the
General Fund balance at year end must be between 50.0% and 52.0% of the ensuing
5
year’s General Fund operating budget. This provides both for cash flow needs and
emergency expenditures in the short term.
Also included in the Financial Policies are internal control directives to protect the City’s
assets from loss, theft or misuse. These controls provide reasonable assurance of the
safety of the City’s assets while recognizing that management estimates and judgments
as to the cost of such controls are also important to deriving maximum benefit from
these controls.
Because of the recent and ongoing instability of State aid payments, the policy requiring
a balanced budget has been instrumental in dealing with frequent adjustments in State
aid funding legislation and projections.
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, 2011. 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
2012 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
dedicated and efficient work of the Finance staff, most especially Clara Hilger, the
Assistant Finance Director. We would like to acknowledge all staff that contributed their
efforts to the Finance operations in 2012. 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,
Cornelius L. Boganey Daniel Jordet
City Manager Director of Finance
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2012
NamePositionTerm of OfficeTerm Expires
ELECTED OFFICIALS
Tim Willson Mayor Four YearsDecember 31, 2014
Carol Kleven Council Member Four YearsDecember 31, 2014
Kay Lasman Council Member Four YearsDecember 31, 2012
Dan Ryan Council Member Four YearsDecember 31, 2014
Lin Myszkowski Council Member Four YearsDecember 31, 2012
APPOINTED OFFICIALS
Cornelius L. BoganeyCity Manager Appointed
Charles LeFevre City Attorney Contractual Appointee
Sharon Knutson City Clerk Appointed
Vickie SchleuningAssistant City Manager/Building and Community Standards DirectorAppointed
Kevin Benner 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 Development Director Appointed
Daniel Jordet Director of Finance Appointed
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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, 2012. 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 6 of this CAFR.
Financial Highlights
The assets of the City exceeded liabilities by a 6.6 to 1 margin at the close of the most recent fiscal year. Current
assets exceeded current liabilities by a 10.4 to 1 margin. The $ 129,659,344 of net position includes cash and
investments, streets, buildings, equipment, land and other City assets. Of this amount, $ 18,135,113 is classified as
unrestricted net position 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 position increased by $ 1,322,674 or 1.03% from 2011 to 2012.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$ 23,826,247. Of this total amount, $ 16,653,304, or 69.9% is nonspendable, restricted, or committed through legal
restrictions and City Council authorization.
At the end of the current fiscal year the General Fund fund balance of $ 10,686,896 included $ 88,952 nonspendable
for inventories and prepaid items and $ 10,597,944 unassigned.
The City’s total outstanding bonded debt decreased by $ 2,415,000 during the current fiscal year, from $ 20,575,000
to $ 18,160,000.
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 position presents information on all of the City’s assets and liabilities, with the difference between the
two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal
year. All changes in net position 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, sewer, street lighting, liquor operations, golf course, convention center, storm
drainage and recycling.
The government-wide financial statements can be found on pages 25 through 27 of this CAFR.
15
Management’s Discussion and Analysis
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 resources, 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 twenty 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, Tax Increment District No. 2 special revenue fund, Tax
Increment District No. 5 special revenue fund, G.O. Improvement Bonds debt service fund, and 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 30 through 37 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, 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 38 through 43 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 45 through 76 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 and a schedule of funding progress for
other postemployment benefits (OPEB). The City 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 funds to demonstrate compliance with this budget. These can be found on pages 77 through 82 of this CAFR. The
schedule of funding progress can be found on page 83 of this CAFR.
16
Management’s Discussion and Analysis
The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor 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 87 through 120 of this CAFR.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indictor of a government's financial position. In the case of the
City, assets exceeded liabilities by $ 129,659,344 at the close of the most recent fiscal year.
The largest portion of the City's net position ($ 87,264,939 or 67.3 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 POSITION
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Current and other assets46,616,663$ 47,235,659$ 15,443,090$ 11,548,305$ 62,059,753$ 58,783,964$
Capital assets 48,148,729 49,876,316 42,406,210 45,051,128 90,554,939 94,927,444
Total assets 94,765,392 97,111,975 57,849,300 56,599,433 152,614,692 153,711,408
Long-term liabilities
outstanding 15,055,151 17,605,876 1,940,000 2,075,000 16,995,151 19,680,876
Other liabilities 4,314,031 4,521,216 1,646,166 1,172,646 5,960,197 5,693,862
Total liabilities 19,369,182 22,127,092 3,586,166 3,247,646 22,955,348 25,374,738
Net assets:
Net investment in
capital assets 45,261,629 45,761,042 42,406,210 45,051,128 87,264,939 90,282,443
Restricted 24,259,292 24,847,507 - - 24,259,292 24,847,507
Unrestricted 5,875,289 4,376,334 11,856,924 8,300,659 18,135,113 13,206,720
Total net position 75,396,210$ 74,984,883$ 54,263,134$ 53,351,787$ 129,659,344$ 128,336,670$
As of the close of the current year, there is $ 402,900 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 net investment in capital assets in the Governmental Activities. Neither does it
reduce net investment in capital assets of the Business-type Activities. However, it does reduce net investment in capital
assets in the total column.
A portion of the City’s net position 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 position ($ 18,135,113) 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 position, 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 a reduction in notes receivable. A portion of the
receivable was forgiven when the developer met the requirements of the development agreement. Capital assets decreased
due to the City choosing to reconstruct the 2012 scheduled infrastructure in 2011, causing a decrease in new capitalized
assets for the year. Total liabilities decreased due to the payment of principal and interest on bonded debt as scheduled and
the reduction of the net pension obligation related to the fire relief association. The decrease in restricted net position can be
17
Management’s Discussion and Analysis
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 increased due to the City choosing to reconstruct the 2012 scheduled
infrastructure in 2011. Cash normally used to pay for the respective portions of the project remains in the utility funds for
future infrastructure reconstruction projects. Total liabilities increased also due to increases in deposits for future events at
the Earle Brown Heritage Center and in the payable amounts at year-end.
Governmental Activities
Governmental activities resulted in an increase of the City's net position by $ 411,327, while the increase in total net position
was $ 1,322,674. Key elements of the changes are as follows:
CITY’S CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services 3,672,951$ 3,452,146$ 12,378,014$ 11,511,318$ 16,050,965$ 14,963,464$
Operating grants and
contributions 3,165,588 1,637,743 - - 3,165,588 1,637,743
Capital grants and
contributions 491,404 5,299,705 - 80,186 491,404 5,379,891
General revenues:
Property taxes 14,307,993 13,336,056 - - 14,307,993 13,336,056
Other taxes 3,633,869 3,377,359 - - 3,633,869 3,377,359
Grants and contributions
not restricted to
specific programs 496,679 549,649 - - 496,679 549,649
Unrestricted investment
earnings 85,560 191,510 32,998 79,016 118,558 270,526
Gain on sale of assets 113,976 111,530 - - 113,976 111,530
Total revenues 25,968,020 27,955,698 12,411,012 11,670,520 38,379,032 39,626,218
Expenses:
General government 3,246,015 3,216,321 - - 3,246,015 3,216,321
Public safety 9,604,521 9,268,897 - - 9,604,521 9,268,897
Public works 3,561,914 2,771,602 - - 3,561,914 2,771,602
Community services 141,505 100,849 - - 141,505 100,849
Parks and recreation 2,796,561 2,895,769 - - 2,796,561 2,895,769
Economic development 5,438,372 2,542,520 - - 5,438,372 2,542,520
Interest on long-term debt 768,241 865,799 - - 768,241 865,799
Municipal liquor - - 1,274,375 1,218,399 1,274,375 1,218,399
Golf course - - 273,023 284,673 273,023 284,673
Earle Brown Heritage Center - - 2,768,719 2,602,074 2,768,719 2,602,074
Recycling - - 285,853 284,440 285,853 284,440
Street light utility - - 222,835 232,716 222,835 232,716
Water utility - - 1,855,345 1,825,558 1,855,345 1,825,558
Sanitary sewer utility - - 3,317,427 3,277,874 3,317,427 3,277,874
Storm drainage utility - - 1,501,652 1,407,712 1,501,652 1,407,712
Total expenses 25,557,129 21,661,757 11,499,229 11,133,446 37,056,358 32,795,203
Increase in net assets
before transfers 410,891 6,293,941 911,783 537,074 1,322,674 6,831,015
Transfers 436 (749,308) (436) 749,308 - -
Change in net position 411,327 5,544,633 911,347 1,286,382 1,322,674 6,831,015
Net position - January 1 74,984,883 69,440,250 53,351,787 52,065,405 128,336,670 121,505,655
Net position - December 3175,396,210$ 74,984,883$ 54,263,134$ 53,351,787$ 129,659,344$ 128,336,670$
18
Management’s Discussion and Analysis
In the Governmental Activities, the increase in operating grants and contributions is due to the receipt of $1,555,000 in state
and local grant funds for the environmental cleanup of a redevelopment area within the City. Capital grants and contributions
decreased due to a reduced need for state funds and special assessments for infrastructure reconstruction in 2012. Property
taxes increased in 2012 due to a reduction in state aid that reduced property tax revenue in 2011. Public works expenses
increased due to an increase in depreciation on assets capitalized in 2010. Economic development expenses increased due to
the purchase of property for redevelopment and the continuation of the housing rehabilitation program funded by tax
increment and federal grants.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Charges for services
14.1%
Operating grants and
contribtutions
12.2%
Capital grants and
contributions
1.9%
Property taxes
55.1%
Other taxes
14.0%
Other revenues
2.4%Unrestricted investment
earnings
0.3%
Governmental Activities -2012 Revenues
General government
12.7%
Public safety
37.6%
Public works
13.9%
Community services
0.6%
Parks and recreation
10.9%
Economic development
21.3%Interest on long-term
debt
3.0%
Governmental Activities -2012 Expenses
19
Management’s Discussion and Analysis
Business-type activities
Business-type activities increased net position by $ 911,347. Below are graphs showing the business-type activities revenue
and expense comparisons:
Municipal liquor
13.3%
Golf course
1.7%
Earle Brown Heritage
Center
18.5%Water utility
18.7%
Sanitary sewer utility
28.9%
Storm drainage utility
13.4%
Non-major enterprise
5.2%
Unrestricted investment
earnings
0.3%
Business-type Activities -2012 Revenues
Municipal liquor
11.1%
Golf course
2.4%
Earle Brown Heritage
Center
24.1%Water utility
16.1%
Sanitary sewer utility
28.8%
Storm drainage utility
13.1%Non-major enterprise
4.4%
Business-type Activities -2012Expenses
The Earle Brown Heritage Center expenses increased commensurate with revenues due to the increased number of wedding
related events held at the facility in 2012. The Storm Drainage Utility expenses increased due to a storm water pond
maintenance project started in 2012.
20
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The measurement 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, unassigned 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 $ 23,826,247.
Less than 1% of this amount, $ 88,952, is nonspendable because of form or availability: 1) $ 500 in prepaid items and
2) $ 88,452 in inventories. In addition, $ 12,912,357 or 54% is restricted in use by outside influences: 1) $ 1,014,568 for
statutory housing obligation, 2) $ 4,539,556 for tax increment financing, 3) $ 3,536,235 to provide for debt service,
4) $ 1,237,143 for economic development, 5) $ 46,536 for public safety, 6) $ 77,539 for medical insurance premium
reduction program, 7) $ 2,340,192 for street reconstruction and maintenance, and 8) $ 120,588 for the construction of a
community amphitheater. An additional $ 3,651,995 or 15% has been committed by City Council action: 1) $ 57,641 for
public safety, 2) $ 58,770 for recreation activities, 3) $ 119,188 for cable television, 4) $1,458,624 for capital expenditures, 5)
$ 892,786 for capital improvements, 6) $ 1,037,188 for street reconstruction projects, and 7) $ 27,798 for technology
improvements. The remaining $ 7,172,943 is unassigned fund balance.
The General fund is the primary operating fund of the City. At the end of the current fiscal year, total fund balance reached
$ 10,686,896, of which 99.2% ($ 10,597,944) was unassigned. 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 63.8% of total general fund
expenditures for 2012.
The fund balance of the City’s general fund increased by $ 956,061 in 2012. This was due to increased revenues received for
building permits related to redevelopment, rental housing conversions and inspections, delinquent property tax, and lodging
tax. These increases in revenue were accompanied by reductions in expenditures in public safety resulting from open
positions during the year and public works reductions in street maintenance activities.
The Tax Increment District No. 3 fund had a total fund balance of $ 2,530,103 at the end of 2012. The net increase in the
fund balance was $ 145,040. This increase was due to additional tax increment revenue received in 2012 due to the removal
of several parcels from the district in 2011 to form Tax Increment District No. 5. The value of these parcels had fallen below
the frozen value and were decreasing the tax increment received for the district.
The Tax Increment District No. 2 fund had a fund balance of $ 2,853,309 at the end of 2012, of which $ 2,419,205 was not
available in the form of advances to Tax Increment District No. 5. The net decrease of $ 223,636 was due to the de-
certification of the district at the end of 2011; no additional tax increment revenue will be received by this district.
The Tax Increment District No. 5 fund had an ending fund balance deficit of $ (1,419,205). This was due to the accrual of
interest on an advance received from the Tax Increment District No. 2 and the expenditure reported for the portion of the note
receivable that was forgiven when the developer met the requirements of the development agreement.
The G.O. Improvement Bonds fund had a fund balance of $ 2,358,707 at the end of 2012, all of which was restricted for debt
service. The net decrease in fund balance for 2012 was $ 219,194, which was due to the use of collections in previous years
to pay the scheduled bond principal and interest payments.
The fund balance of the Infrastructure Construction fund at the end of 2012 is a deficit of $ (2,005,796). This represents a
smaller deficit than the 2011 fund balance deficit of $ (2,504,286). The reduction in the deficit is due to the collection of
special assessments for street reconstruction projects completed in prior years.
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 position in the respective major proprietary funds are the municipal liquor fund - $ 2,331,729, golf
course - $ (794,370), Earle Brown Heritage Center - $ 1,556,374, water utility - $ 2,123,013, sanitary sewer utility -
$ 2,520,812 and storm drainage utility - $ 4,233,201. The increases (decreases) in net position for the major enterprise funds
21
Management’s Discussion and Analysis
were: municipal liquor $ 190,610, golf course $ 135,745, Earle Brown Heritage Center $ (462,534), water utility $ 476,667,
sanitary sewer utility $ 282,345, and storm drainage utility $ 171,183.
General Fund Budgetary Highlights
During the year, there were no amendments to the General Fund budget. Actual revenues and other financing sources
exceeded the adopted budget by $ 817,569. The major contributors to this were increases in licenses and permits for
redevelopment activities, additional revenues related to rental dwelling conversions and inspections, and the receipt of excess
tax increment. Actual expenditures and other financing uses were lower than the amended budget for the year by $ 121,313.
This was the result of several staff positions being left unfilled during a portion of 2012, lower than expected expenditures in
Fire Protection, Protective Inspection, Street Department and Recreation Programs.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for governmental and business type activities as of December 31,
2012 totals $ 90,554,939 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
infrastructure, machinery and equipment. The total decrease in the City’s investment in capital assets from 2011 to 2012 was
$ 4,372,505 or 4.6 percent (3.5 percent decrease for governmental activities and a 5.9 percent decrease for business-type
activities).
Major capital asset events during the year included the following:
One infrastructure reconstruction project was completed during the year, with 2012 costs of $ 173,340 and final total
costs of $ 7,252,286.
A park building replacement project was completed during the year, with 2012 costs of $ 77,349 and a final total cost
of $ 305,065.
CITY'S CAPITAL ASSETS
(net of depreciation)
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
Land 3,537,473$ 3,537,473$ 3,194,983$ 3,194,983$ 6,732,456$ 6,732,456$
Easements 104,208 108,758 24,165 28,238 128,373 136,996
Construction in progress186,765 3,249,855 57,956 4,114,763 244,721 7,364,618
Land improvements - - 178,593 193,284 178,593 193,284
Other park improvements6,253,418 6,427,233 - - 6,253,418 6,427,233
Buildings and structures9,046,643 9,402,781 4,883,717 5,563,635 13,930,360 14,966,416
Departmental equipment3,869,215 3,895,210 314,189 193,330 4,183,404 4,088,540
Streets 25,151,007 23,255,006 - - 25,151,007 23,255,006
Street light systems - - 357,908 386,356 357,908 386,356
Mains and lines - - 33,394,699 31,376,539 33,394,699 31,376,539
Total 48,148,729$ 49,876,316$ 42,406,210$ 45,051,128$ 90,554,939$ 94,927,444$
Additional information on the City’s capital assets can be found in Note 4.D. on pages 59 through 60 of this CAFR.
22
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had outstanding long-term bonded debt of $ 18,160,000, all
of which is backed by the full faith and credit of the government. Of the total outstanding debt, $ 700,000 is general
obligation bonds payable from directly levied property tax, $ 12,795,000 is tax increment bonds payable with collected tax
increment proceeds, $ 2,590,000 is improvement bonds payable from special assessment levies against individual properties
adjacent to the improvements, and $ 2,075,000 is payable from water and sanitary sewer utility revenues.
Additional long-term liabilities include $ 1,264,220 for compensated absences, the accumulated vacation and vested sick
leave not used by employees at the end of 2012 and $ 487,353 for net OPEB obligation related to health insurance costs paid
by and for retirees.
CITY’S OUTSTANDING DEBT
General Obligation Bonds, General Obligation Tax Increment Bonds,
General Obligation Improvement Bonds, General Obligation Revenues Bonds,
Compensated Absences, Net Pension Obligation, and OPEB
Governmental Activities Business-type Activities Total
2012 2011 2012 2011 2012 2011
General obligation bonds 700,000$ 1,385,000$ -$ -$ 700,000$ 1,385,000$
General obligation tax increment bonds12,795,000 13,720,000 - - 12,795,000 13,720,000
General obligation improvement bonds2,590,000 3,260,000 - - 2,590,000 3,260,000
General obligation revenue bonds - - 2,075,000 2,210,000 2,075,000 2,210,000
Compensated absences 1,264,220 1,175,408 - - 1,264,220 1,175,408
Net pension obligation - 52,199 - - - 52,199
Net OPEB obligation 487,353 410,810 - - 487,353 410,810
Total 17,836,573$ 20,003,417$ 2,075,000$ 2,210,000$ 19,911,573$ 22,213,417$
The City’s total bonded debt decreased by $ 2,415,000 during the current fiscal year following the scheduled payments of
bond obligations.
The City’s bond rating is AA from Standard & Poor’s Ratings Services.
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 $ 44,044,797. None of the City's net outstanding debt is counted within the
statutory limitation since the fund balance available for payment of general obligation debt exceeds the principal remaining
on the debt.
Additional information on the City’s long-term debt can be found in Note 4.G. on pages 63 through 66 of this CAFR.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City is 6.8 percent at the end of the 2012 fiscal year, which is a decrease from the rate
of 7.1 percent a year ago. This compares to the State’s average unemployment rate of 5.4 percent and the national
average of 7.6 percent.
Continuing redevelopment at the Shingle Creek Crossing site will yield net growth in tax base and stability in tax base
along with growth in retail jobs.
Reconstruction along the Brooklyn Boulevard corridor including the proposed Luther Volkswagen dealership will
increase commercial tax base in a sustainable manner and provide job growth in the City.
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 2013 fiscal year.
23
Management’s Discussion and Analysis
During the year, unassigned fund balance in the general fund increased by $ 902,031. The City’s policy is to maintain a
General Fund unassigned fund balance of 50 to 52 percent of the ensuing year’s budgeted General Fund operations. Because
the unassigned fund balance at December 31, 2012 was 60.5% of the adopted 2013 budgeted expenditures, the amount of
fund balance beyond the 52% policy requirement will be retained in the General Fund until reassigned by action of the City
Council.
For 2013 the overall water rate was adjusted upward by 6.0%. Sanitary sewer, street light and recycling utility rates were
also increased for the 2013 budget year. Residential sanitary sewer rates were increased by 4.0% and street lights by 20.2%
percent from a flat rate of $ 4.95 per quarter to $ 5.95 per quarter. The rates for the storm sewer utility and the recycling
program were left at the existing levels and did not increase for 2013. These rates are reviewed annually in conjunction with
the update and projection of the Capital Improvement Plan of the City. The review serves two main purposes. First, utility
revenues must ensure that the municipal utilities are 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. In addition, the rates must generate sufficient cash to provide for the maintenance, replacement and upgrading of
facilities and equipment without unduly burdening the customers. Rates are regularly compared to neighboring
municipalities in these calculations.
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 Finance, City of Brooklyn Center, 6301 Shingle Creek Parkway,
Brooklyn Center, Minnesota 55430.
24
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2012
Governmental Business-Type
ASSETS ActivitiesActivitiesTotal
Cash and investments 26,619,399$ 12,876,409$ 39,495,808$
Receivables:
Accounts - net 400,613 2,277,441 2,678,054
Taxes650,754 - 650,754
Special assessments4,019,409 470,424 4,489,833
Internal balances1,114,961 (1,114,961) -
Due from other governments 2,550,151 - 2,550,151
Prepaid expenses500 199,951 200,451
Notes receivable 1,090,000 - 1,090,000
Inventories 114,759 733,826 848,585
Assets held for resale 9,992,117 - 9,992,117
Restricted assets:
Cash and investments 64,000 - 64,000
Capital assets:
Nondepreciable 3,812,942 3,263,224 7,076,166
Depreciable 44,335,787 39,142,986 83,478,773
Total assets 94,765,392 57,849,300 152,614,692
LIABILITIES
Accounts payable 438,656 485,330 923,986
Accrued salaries and wages 529,505 99,060 628,565
Due to other governments 121,436 148,786 270,222
Contracts payable 39,015 175,629 214,644
Deposits payable 17,346 362,195 379,541
Accrued interest payable 313,800 33,928 347,728
Unearned revenue 8,851 206,238 215,089
Liabilities payable from restricted assets:
Deposits payable 64,000 - 64,000
Compensated absences payable:
Due within one year 126,422 - 126,422
Due in more than one year 1,137,798 - 1,137,798
Net OPEB obligation:
Due in more than one year 487,353 - 487,353
Bonds payable:
Due within one year 2,655,000 135,000 2,790,000
Due in more than one year 13,430,000 1,940,000 15,370,000
Total liabilities19,369,182 3,586,166 22,955,348
NET POSITION
Net investment in capital assets 45,261,629 42,406,210 87,264,939
Restricted for:
Debt service 4,745,078 - 4,745,078
Tax increment purposes 15,148,835 - 15,148,835
Economic development 1,780,524 - 1,780,524
Public safety 46,536 - 46,536
Community amphitheater 120,588 - 120,588
Insurance premium reduction program 77,539 - 77,539
Street reconstruction/maintenance2,340,192 - 2,340,192
Unrestricted5,875,289 11,856,924 18,135,113
Total net position75,396,210$ 54,263,134$ 129,659,344$
The accompanying notes are an integral part of these financial statements.
25
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
Charges For
FUNCTIONS/PROGRAMS Expenses Services
Primary government:
Government activities:
General government 3,246,015$ 1,082,741$
Public safety 9,604,521 1,402,204
Public works3,561,914 270,680
Community services 141,505 -
Parks and recreation2,796,561 897,592
Economic development 5,438,372 19,734
Interest on long-term debt 768,241 -
Total government activities25,557,129 3,672,951
Business-type activities:
Municipal liquor1,274,375 1,656,125
Golf course 273,023 208,027
Earle Brown Heritage Center2,768,719 2,293,386
Recycling 285,853 290,737
Street light utility 222,835 354,821
Water utility 1,855,345 2,321,539
Sanitary sewer utility 3,317,427 3,592,530
Storm drainage utility 1,501,652 1,660,849
Total business-type activities11,499,229 12,378,014
Total primary government 37,056,358$ 16,050,965$
The accompanying notes are an integral part of these financial statements.
26
Statement 2
Program Revenues Net (Expense) Revenue and Changes in Net Position
OperatingCapitalPrimary Government
Grants and Grants and Governmental Business-Type
ContributionsContributionsActivitiesActivitiesTotal
-$ -$ (2,163,274)$ -$ (2,163,274)$
882,998 - (7,319,319) - (7,319,319)
100,932 491,404 (2,698,898) - (2,698,898)
- - (141,505) - (141,505)
12,500 - (1,886,469) - (1,886,469)
2,169,158 - (3,249,480) - (3,249,480)
- - (768,241) - (768,241)
3,165,588 491,404 (18,227,186) - (18,227,186)
- - - 381,750 381,750
- - - (64,996) (64,996)
- - - (475,333) (475,333)
- - - 4,884 4,884
- - - 131,986 131,986
- - - 466,194 466,194
- - - 275,103 275,103
- - - 159,197 159,197
- - - 878,785 878,785
3,165,588$ 491,404$ (18,227,186) 878,785 (17,348,401)
General revenues:
Property taxes 14,307,993 - 14,307,993
Tax increments 2,751,249 - 2,751,249
Lodging taxes 882,620 - 882,620
Grants and contributions not
restricted to specific programs 496,679 - 496,679
Unrestricted investment earnings 85,560 32,998 118,558
Gain on disposal of capital asset113,976 - 113,976
Transfers436 (436) -
Total general revenues and transfers18,638,513 32,562 18,671,075
Change in net position 411,327 911,347 1,322,674
Net position - beginning 74,984,883 53,351,787 128,336,670
Net position - ending 75,396,210$ 54,263,134$ 129,659,344$
27
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28
FUND FINANCIAL STATEMENTS
29
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
Tax Increment Tax Increment
General District No. 3District No. 2
ASSETS
Cash and investments 11,054,928$ 2,536,963$ 474,357$
Receivables:
Accounts 148,189 - -
Current taxes 173,465 67,275 -
Delinquent taxes 253,535 120,389 -
Special assessments 164,070 - -
Due from other funds 28,385 - -
Due from other governments 24,585 - -
Prepaid items500 - -
Notes receivable - - -
Inventories 88,452 - -
Advances to other funds - - 2,419,205
Asset held for resale - 9,455,117 -
Restricted assets:
Cash and investments-performance deposits 64,000 - -
Total assets12,000,109 12,179,744 2,893,562
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable281,101 69,390 -
Accrued salaries and wages496,378 - -
Due to other funds- - -
Due to other governments36,255 4,745 21,048
Contracts payable- - -
Deposits payable2,346 - -
Interfund payable- - -
Advances from other funds- - -
Deferred revenue424,282 9,575,506 19,205
Unearned revenue8,851 - -
Liabilities payable from restricted assets:
Deposits payable64,000 - -
Total liabilities1,313,213 9,649,641 40,253
Fund balances:
Nonspendable 88,952 - -
Restricted - 2,530,103 2,853,309
Committed - - -
Unassigned 10,597,944 - -
Total fund balances (deficit)10,686,896 2,530,103 2,853,309
Total liabilities and fund balances 12,000,109$ 12,179,744$ 2,893,562$
The accompanying notes are an integral part of these financial statements.
30
Statement 3
Tax Increment G.O. Improvement InfrastructureOther Nonmajor Total
District No. 5 Bonds Construction Governmental Governmental
460$ 2,352,742$ -$ 5,536,425$ 21,955,875$
- - 57,234 163,702 369,125
- - - 10,708 251,448
- - - 25,382 399,306
- 1,509,607 2,345,732 - 4,019,409
- - - - 28,385
- - - 2,525,566 2,550,151
- - - - 500
1,090,000 - - - 1,090,000
- - - - 88,452
- - - 792,488 3,211,693
- - - 537,000 9,992,117
- - - - 64,000
1,090,460 3,862,349 2,402,966 9,591,271 44,020,461
- - 25,402 54,182 430,075
- - - 18,364 514,742
- - 23,000 28,385 51,385
460 - - 58,863 121,371
- - 37,992 1,023 39,015
- - - 15,000 17,346
- - 1,931,900 30,839 1,962,739
2,419,205 - - - 2,419,205
90,000 1,503,642 2,390,468 562,382 14,565,485
- - - - 8,851
- - - - 64,000
2,509,665 1,503,642 4,408,762 769,038 20,194,214
- - - - 88,952
- 2,358,707 - 5,170,238 12,912,357
- - - 3,651,995 3,651,995
(1,419,205) - (2,005,796) - 7,172,943
(1,419,205) 2,358,707 (2,005,796) 8,822,233 23,826,247
1,090,460$ 3,862,349$ 2,402,966$ 9,591,271$ 44,020,461$
31
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32
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE Statement 4
STATEMENT OF NET POSITION
December 31, 2012
Fund balance - governmental funds is different from net position - governmental activities because:
Total fund balances (Statement 3)23,826,247$
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported in the funds.44,432,656
Other long-term assets are not available to pay for current-period expenditures
and, therefore, are deferred in the funds.14,565,485
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds.(16,398,800)
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 position.8,970,622
Net position of governmental activities (Statement 1)$75,396,210
The accompanying notes are an integral part of these financial statements.
33
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2012
Tax Increment Tax Increment
General District No. 3District No. 2
REVENUES
Property taxes 13,383,992$ -$ -$
Tax increments - 2,388,702 (21,048)
Franchise fees - - -
Lodging taxes 882,620 - -
Special assessments 91,298 - -
Licenses and permits 858,593 - -
Intergovernmental 966,479 - -
Charges for services1,046,626 - -
Fines and forfeits336,740 - -
Investment earnings (net of market value adjustment)22,932 3,961 1,459
Miscellaneous282,297 - 125
Total revenues17,871,577 2,392,663 (19,464)
EXPENDITURES
Current:
General government 3,390,929 - -
Public safety 8,779,847 - -
Public works1,989,217 - -
Community services 141,505 - -
Parks and recreation2,375,111 - -
Economic development 419,387 669,273 204,172
Nondepartmental 287,692 - -
Administrative services reimbursement (700,065) - -
Capital outlay:
Public safety - - -
Public works27,091 - -
Parks and recreation32,585 - -
Economic development - - 107,932
Debt service:
Principal retirement- - -
Interest- - -
Fiscal agent fees- - -
Total expenditures16,743,299 669,273 312,104
Revenues over (under) expenditures1,128,278 1,723,390 (331,568)
OTHER FINANCING SOURCES (USES)
Transfers in119,712 - -
Transfers out(322,614) (1,578,350) -
Sale of capital assets600 - 107,932
Insurance recoveries30,085 - -
Total other financing sources (uses)(172,217) (1,578,350) 107,932
Net increase (decrease) in fund balances 956,061 145,040 (223,636)
Fund balances - January 1 9,730,835 2,385,063 3,076,945
Fund balances - December 31 10,686,896$ 2,530,103$ 2,853,309$
The accompanying notes are an integral part of these financial statements.
34
Statement 5
Tax Increment G.O. Improvement InfrastructureOther Nonmajor Total
District No. 5 Bonds Construction Governmental Governmental
-$ -$ -$ 1,005,850$ 14,389,842$
- - - 318,168 2,685,822
- - - 647,346 647,346
- - - - 882,620
- 561,618 641,605 - 1,294,521
- - - - 858,593
- - (42,093) 2,682,832 3,607,218
- - - 9,615 1,056,241
- - - - 336,740
- 5,899 - 14,071 48,322
- 12 31,589 398,161 712,184
- 567,529 631,101 5,076,043 26,519,449
- - - 152,111 3,543,040
- - - 310,477 9,090,324
- - 14,862 114,224 2,118,303
- - - - 141,505
- - - 157,716 2,532,827
1,408,438 - - 2,514,349 5,215,619
- - - - 287,692
- - - - (700,065)
- - - 68,161 68,161
- - 118,185 108,578 253,854
- - - 237,031 269,616
- - - - 107,932
- 670,000 - 1,996,790 2,666,790
- 111,460 - 686,325 797,785
- 5,263 - 2,414 7,677
1,408,438 786,723 133,047 6,348,176 26,401,060
(1,408,438) (219,194) 498,054 (1,272,133) 118,389
- - 436 2,200,735 2,320,883
- - - (419,483) (2,320,447)
- - - - 108,532
- - - - 30,085
- - 436 1,781,252 139,053
(1,408,438) (219,194) 498,490 509,119 257,442
(10,767) 2,577,901 (2,504,286) 8,313,114 23,568,805
(1,419,205)$ 2,358,707$ (2,005,796)$ 8,822,233$ 23,826,247$
35
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36
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES Statement 6
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2012
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances - total governmental funds (Statement 5)257,442$
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.(1,642,155)
Revenues in the statement of activities that do not provide current financial resources are not
reported as revenues in the funds.(506,061)
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 position. This amount is the net effect of these differences in the treatment
of long-term debt and related items.2,280,000
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.(67,319)
Somes expenses reported in the statement of activities do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.89,420
Change in net position of governmental activities (Statement 2)411,327$
The accompanying notes are an integral part of these financial statements.
37
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
Major
MunicipalGolfEarle Brown
Liquor Course Heritage Center
ASSETS
Current assets:
Cash and cash equivalents1,987,770$ 123$ 1,887,600$
Receivables:
Accounts - net7,780 - 314,627
Special assessments- - -
Due from other funds- - -
Interfund receivable- - -
Prepaid items27,074 - 5,723
Inventories667,397 2,620 33,934
Total current assets2,690,021 2,743 2,241,884
Noncurrent assets:
Capital assets:
Land - 1,390,402 1,493,300
Easements - - -
Land improvements - 65,637 327,830
Buildings and structures 192,771 487,946 12,278,152
Machinery and equipment 246,739 11,160 348,101
Street light systems - - -
Mains and lines - - -
Construction in progress - - -
Total capital assets 439,510 1,955,145 14,447,383
Less: Allowance for depreciation (280,465) (407,103) (9,398,920)
Net capital assets 159,045 1,548,042 5,048,463
Total assets 2,849,066 1,550,785 7,290,347
LIABILITIES
Current liabilities:
Accounts payable 274,885 927 134,632
Accrued salaries payable 26,552 3,406 34,340
Due to other governments 55,668 292 13,802
Contracts payable - - 141,841
Deposits payable - - 359,295
Interfund payable - - -
Accrued interest payable - - -
Unearned revenue 1,187 - 1,600
Current portion of long-term debt - - -
Compensated absences payable-current - - -
Total current liabilities 358,292 4,625 685,510
Noncurrent liabilities:
Bonds payable- - -
Advances from other funds- 792,488 -
Compensated absences payable-long-term- - -
Net OPEB obligation - - -
Total noncurrent liabilities - 792,488 -
Total liabilities 358,292 797,113 685,510
NET POSITION
Net investment in capital assets 159,045 1,548,042 5,048,463
Unrestricted2,331,729 (794,370) 1,556,374
Total net position2,490,774$ 753,672$ 6,604,837$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
The accompanying notes are an integral part of these financial statements.
38
Statement 7
Business-Type Activities Governmental
EnterpriseOther Activities-
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal
Utility Utility Utility Enterprise Enterprise Service
2,953,240$ 2,077,227$ 3,877,639$ 92,810$ 12,876,409$ 4,663,524$
495,574 933,905 376,704 148,851 2,277,441 31,488
470,424 - - - 470,424 -
- - 23,000 - 23,000 -
6,896 - - - 6,896 1,962,739
500 166,654 - - 199,951 -
29,875 - - - 733,826 26,307
3,956,509 3,177,786 4,277,343 241,661 16,587,947 6,684,058
20,734 3,389 287,158 - 3,194,983 -
- 20,335 10,285 - 30,620 -
- - - - 393,467 166,108
3,033,212 2,705,423 - - 18,697,504 -
128,668 179,130 - - 913,798 8,181,137
- - - 425,860 425,860 -
20,108,544 19,011,984 25,300,123 - 64,420,651 -
- - - 57,956 57,956 -
23,291,158 21,920,261 25,597,566 483,816 88,134,839 8,347,245
(14,028,049) (11,531,910) (10,014,230) (67,952) (45,728,629) (4,631,172)
9,263,109 10,388,351 15,583,336 415,864 42,406,210 3,716,073
13,219,618 13,566,137 19,860,679 657,525 58,994,157 10,400,131
22,414 46,694 2,651 3,127 485,330 8,581
18,934 8,125 7,703 - 99,060 14,763
4,101 74,923 - - 148,786 65
- - 33,788 - 175,629 -
2,900 - - - 362,195 -
- - - 6,896 6,896 -
25,446 8,482 - - 33,928 -
203,451 - - - 206,238 -
101,250 33,750 - - 135,000 -
- - - - - 126,422
378,496 171,974 44,142 10,023 1,653,062 149,831
1,455,000 485,000 - - 1,940,000 -
- - - - 792,488 -
- - - - - 1,137,798
- - - - - 487,353
1,455,000 485,000 - - 2,732,488 1,625,151
1,833,496 656,974 44,142 10,023 4,385,550 1,774,982
9,263,109 10,388,351 15,583,336 415,864 42,406,210 3,716,073
2,123,013 2,520,812 4,233,201 231,638 12,202,397 4,909,076
11,386,122$ 12,909,163$ 19,816,537$ 647,502$ 54,608,607 8,625,149$
(345,473)
54,263,134$
39
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
Major
MunicipalGolfEarle Brown
Liquor Course Heritage Center
OPERATING REVENUES
Sales and user fees5,963,908$ 207,827$ 4,458,072$
Cost of sales4,316,716 - 2,193,973
Total operating revenues1,647,192 207,827 2,264,099
OPERATING EXPENSES
Personal services610,025 109,254 920,770
Supplies41,819 19,901 145,899
Other services234,289 86,373 786,505
Insurance8,301 4,958 48,176
Utilities68,452 23,535 187,311
Rent296,964 - -
Depreciation11,312 28,261 672,539
Total operating expenses1,271,162 272,282 2,761,200
Operating income (loss)376,030 (64,455) (497,101)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental- - -
Investment earnings5,647 - 5,280
Special assessments- - -
Gain (loss) on sale of capital asset- - -
Other revenue8,933 200 29,287
Interest and fiscal agent fees- - -
Total nonoperating revenues (expenses)14,580 200 34,567
Income (loss) before transfers390,610 (64,255) (462,534)
Transfers in- 200,000 -
Transfers out(200,000) - -
Change in net position190,610 135,745 (462,534)
Net position - January 1 2,300,164 617,927 7,067,371
Net position - December 31 2,490,774$ 753,672$ 6,604,837$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net position of business-type activities (Statement 2)
The accompanying notes are an integral part of these financial statements.
40
Statement 8
Business-Type Activities Governmental
EnterpriseOther Activities-
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal
Utility Utility Utility Enterprise Enterprise Service
2,297,340$ 3,592,429$ 1,637,486$ 645,445$ 18,802,507$ 1,886,117$
- - - - 6,510,689 -
2,297,340 3,592,429 1,637,486 645,445 12,291,818 1,886,117
479,762 195,348 176,834 - 2,491,993 722,906
144,170 29,941 5,910 50 387,690 573,529
370,493 2,381,363 331,995 308,490 4,499,508 123,658
20,851 4,111 2,797 2,574 91,768 40,950
151,134 36,172 - 169,126 635,730 1,015
- - - - 296,964 -
622,806 647,861 982,599 28,448 2,993,826 652,297
1,789,216 3,294,796 1,500,135 508,688 11,397,479 2,114,355
508,124 297,633 137,351 136,757 894,339 (228,238)
- - - - - 12,956
6,116 5,202 10,469 284 32,998 19,238
21,800 101 - - 21,901 -
- - - - - 95,496
2,399 - 23,363 113 64,295 13,842
(61,772) (20,591) - - (82,363) -
(31,457) (15,288) 33,832 397 36,831 141,532
476,667 282,345 171,183 137,154 931,170 (86,706)
- - - - 200,000 -
- - - (436) (200,436) -
476,667 282,345 171,183 136,718 930,734 (86,706)
10,909,455 12,626,818 19,645,354 510,784 53,677,873 8,711,855
11,386,122$ 12,909,163$ 19,816,537$ 647,502$ 54,608,607$ 8,625,149$
(19,387)
911,347$
41
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2012
Major
MunicipalGolfEarle Brown
Liquor CourseHeritage Center
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users5,964,013$ 207,827$ 4,334,200$
Receipts from interfund services provided- - -
Payments to suppliers(4,776,291) (136,066) (3,208,846)
Payments to employees (608,438) (108,411) (919,892)
Miscellaneous revenue8,933 200 29,287
Net cash flows provided (used) by operating activities 588,217 (36,450) 234,749
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in - 200,000 -
Transfers out(200,000) - -
Special assessments- - -
Interfund receivable- - -
Interfund payable- (163,427) -
Principal paid on revenue bonds- - -
Interest paid on non-capital debt- - -
Net cash flows provided (used) by noncapital financing activities (200,000) 36,573 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (146,819) - (15,261)
Proceeds from sale of assets - - -
Net cash flows provided (used) by capital and related financing activities(146,819) - (15,261)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments5,647 - 5,280
Net increase (decrease) in cash and cash equivalents 247,045 123 224,768
Cash and cash equivalents - January 1 1,740,725 - 1,662,832
Cash and cash equivalents - December 31 1,987,770$ 123$ 1,887,600$
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 376,030$ (64,455)$ (497,101)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 11,312 28,261 672,539
Changes in assets and liabilities:
(Increase) decrease in receivables - - (123,872)
(Increase) decrease in inventories 37,587 (761) (1,222)
(Increase) decrease in prepaid expenses (346) - 15,037
Increase (decrease) in payables 153,009 (538) 139,203
Increase (decrease) in accrued expenses 1,587 843 878
Increase (decrease) in unearned revenue 105 - -
Other nonoperating income 8,933 200 29,287
Total adjustments 212,187 28,005 731,850
Net cash flows provided (used) by operating activities 588,217$ (36,450)$ 234,749$
Noncash financing activities:
Gain on sale of assets-$ -$ -$
The accompanying notes are an integral part of these financial statements.
42
Statement 9
Business-Type Activities Governmental
EnterpriseOther Activities-
Water Sanitary Sewer Storm Drainage Nonmajor Total Internal
Utility Utility Utility Enterprise Enterprise Service
2,288,828$ 3,510,943$ 1,641,201$ 624,283$ 18,571,295$ -$
- - - - - 1,882,477
(676,843) (2,365,689) (305,849) (483,420) (11,953,004) (838,531)
(478,204) (193,734) (175,624) - (2,484,303) (553,003)
2,399 - 23,363 113 64,295 26,798
1,136,180 951,520 1,183,091 140,976 4,198,283 517,741
- - - - 200,000 -
- - - (436) (200,436) -
(2,665) 1,491 - - (1,174) -
866 - (23,000) - (22,134) 2,047,549
- - - (866) (164,293) -
(101,250) (33,750) - - (135,000) -
(62,278) (20,760) - - (83,038) -
(165,327) (53,019) (23,000) (1,302) (406,075) 2,047,549
(15,090) 3,990 (117,772) (57,956) (348,908) (603,569)
- - - - - 132,200
(15,090) 3,990 (117,772) (57,956) (348,908) (471,369)
6,116 5,202 10,469 284 32,998 19,238
961,879 907,693 1,052,788 82,002 3,476,298 2,113,159
1,991,361 1,169,534 2,824,851 10,808 9,400,111 2,550,365
2,953,240$ 2,077,227$ 3,877,639$ 92,810$ 12,876,409$ 4,663,524$
508,124$ 297,633$ 137,351$ 136,757$ 894,339$ (228,238)$
622,806 647,861 982,599 28,448 2,993,826 652,297
(55,124) (81,486) 3,715 (21,162) (277,929) (370)
8,333 - - - 43,937 (590)
- (9,071) - - 5,620 -
1,472 94,969 34,853 (3,180) 419,788 (98,789)
1,558 1,614 1,210 - 7,690 166,633
46,612 - - - 46,717 -
2,399 - 23,363 113 64,295 26,798
628,056 653,887 1,045,740 4,219 3,303,944 745,979
1,136,180$ 951,520$ 1,183,091$ 140,976$ 4,198,283$ 517,741$
-$ -$ -$ -$ 95,496$
43
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44
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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’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, TIF District No. 2, TIF District No. 3, TIF District No. 4, TIF District No. 5, and the
Community Development Block Grant Special Revenue Funds; the Tax Increment Bonds Debt Service 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.
45
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 position and the statement of activities) 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.
46
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 Tax Increment District No. 2 Special Revenue Fund has the authority to collect tax increments which are used
for various redevelopment projects within the City.
The Tax Increment District No. 5 Special Revenue Fund has the authority to collect tax increments which are used
for a specific redevelopment project within the City.
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 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 57% 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.
47
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
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) 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.
c) Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S.
banks.
d) Repurchase agreements and reverse repurchase agreements with financial institutions identified by Minnesota
Statutes Chapter 118A.
e) Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes
Chapter 118A.
f) Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter
118A
g) 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.
h) 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.
48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. CASH AND INVESTMENTS (Continued)
Investments are reported at fair value, based on quoted market prices as of the balance sheet date, except for investments
in 2a7-like external investment pools, which are stated at amortized cost. 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, 2012 are planned to be eliminated in 2013. 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 restricted or committed fund balance
in applicable governmental funds. This classification is based on the restraint that will be placed on the advanced funds
when they are returned to the lending fund.
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. Prepaid items are reported using the consumption method and
recorded as expenditures/expenses at the time of consumption.
G. ASSETS HELD FOR RESALE
Assets held for resale represent various property purchases made by the City with the intent to sell in order to increase
tax base or to attract new businesses. These assets are stated at the lower of cost or net realizable value. During the year
ended December 31, 2012 management has reviewed the cost value reported for these assets and has indicated the
properties are fairly presented for financial reporting purposes.
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), and intangible assets such as easements and computer software, 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 $ 250,000
Buildings and Building Improvements 50,000
Land Improvements 25,000
Heavy Equipment 25,000
Furniture and furnishings 10,000
Motorized vehicles 10,000
Technology equipment 10,000
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, 2012 no interest was capitalized in connection with construction in
progress.
Capital assets of the City, as well as the component units, are depreciated using the straight line method over the
following estimated useful lives:
Easements - temporary 5 years
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
I. 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.
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. 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 position. 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.
K. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net position for
proprietary funds. Fund equity in the government-wide financial statements is classified as net position for both
governmental and business-type activities.
Fund balance – In the fund financial statements, governmental funds report fund balance in classifications that disclose
restraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – consists of amounts that are not in spendable form or are required to be maintained intact.
Restricted – consists of amounts related to externally enforceable legal restrictions.
Committed – consists of internally imposed constraints. These constraints are imposed by formal action (resolution)
of the City Council, which is the highest level of decision making authority.
Assigned – consists of internally imposed constraints. These constraints reflect the specific purpose for which it is
the City’s intended use. These constraints are established by the City Council or, pursuant to council resolution, the
City Manager or the Director of Finance.
Unassigned – is the residual classification for the general fund and also reflects negative residual amounts in other
funds.
When both restricted and unrestricted fund balances are available for an allowable use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned
resources are available for an allowable use, it is the City’s policy to use resources in the following order; 1) committed,
2) assigned, and 3) unassigned.
Net position – Net position represents the difference between assets and liabilities. Net position, net investment in
capital assets, 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 position is 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 remaining net
position is reported as unrestricted.
When both restricted and unrestricted net position are available for an allowable use, it is the government’s policy to use
restricted resources first, then unrestricted resources as they are needed.
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
L. 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.
M. 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.
N. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board recently approved the following statements which were not
implemented in these financial statements. The effect these standards may have on future financial statements has not
been determined at this time.
Statement No. 61, The Financial Reporting Entity: Omnibus. The objective of this statement is to improve financial
reporting for a governmental financial reporting entity by improving guidance for including, presenting, and disclosing
information about component units and equity interest transactions of a financial reporting entity. The provisions of this
statement are effective for periods beginning after June 15, 2012.
Statement No. 65, Items Previously Reported as Assets and Liabilities. This statement amends the financial statement
element classification of certain items previously reported as assets and liabilities to be consistent with the definitions in
Concepts Statement No. 4, Elements of Financial Statements. The provisions of this statement are effective for periods
beginning after December 15, 2012.
Statement No. 68, Accounting and Financial Reporting for Pensions. The primary objective of this statement is to
improve accounting and financial reporting by state and local governments for pensions. It revises existing standards of
financial reporting for most pension plans. The provisions of this statement are effective for periods beginning after
June 15, 2014.
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 POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net
position – governmental activities as reported in the government-wide statement of net position. 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 $ 16,398,800 difference are as follows:
Bonds payable 16,085,000$
Accrued interest payable 313,800
Net adjustment to decrease fund balance - total governmental
funds to arrive at net position - governmental activities 16,398,800$
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 POSITION (Continued)
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
position.” The details of this $ 8,970,622 difference are as follows:
Net position of internal service funds 8,625,149$
Plus: Internal receivable representing charges in excess of
cost to business-type activities - prior years 326,086
Plus: Internal receivable representing charges in excess of
cost to business-type activities - current year 19,387
Net adjustment to decrease fund balance - total governmental
funds to arrive at net position - governmental activities 8,970,622$
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 position 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 $ 1,642,155
difference are as follows:
Capital outlay 699,562$
Loss on disposal of assets (120,137)
Depreciation expense (2,221,580)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities (1,642,155)$
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 $ 506,061 difference are as follows:
General property taxes deferred revenue:
At December 31, 2011(360,766)$
At December 31, 2012278,917
Tax increment taxes deferred revenue:
At December 31, 2011(54,962)
At December 31, 2012120,389
Special assessments deferred revenue:
At December 31, 2011(4,764,035)
At December 31, 20124,003,011
Other deferred revenues:
At December 31, 2011(9,891,783)
At December 31, 201210,163,168
Net adjustments to increase net changes in fund balances -
total governmental funds to arrive at changes in net
position of governmental activities(506,061)$
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 position.” The details of
this $ 2,280,000 difference are as follows:
Principal repayments:
General obligation bonds685,000$
General obligation improvement bonds670,000
General obligation tax increment bonds925,000
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities2,280,000$
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 “Some expenses reported in the statement of activities do not require
the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details
of this $ 89,420 difference are as follows:
Decrease in accrued interest 37,221$
Decrease in net pension obligation 52,199
Net adjustment to increase net changes in fund balances -
total governmental funds to arrive at changes in net position
of governmental activities 89,420$
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 Tax Increment District No. 2, Tax Increment District No. 5, Police Drug
Forfeiture, Early Retiree Reinsurance Program, 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 supplemental budgetary appropriations during the year.
For the year ended December 31, 2012 expenditures exceeded appropriations in the following General Fund departments
and other governmental funds:
Final Over
BudgetActualBudget
Major Funds:
General Fund:
Administrative 734,980$ 758,633$ (23,653)$
Finance 504,862 505,555 (693)
Government buildings 731,462 783,979 (52,517)
Police protection 6,821,285 6,860,808 (39,523)
Emergency preparedness 74,228 91,829 (17,601)
Social services 97,250 141,505 (44,255)
Park maintenance 988,672 1,025,122 (36,450)
Convention bureau 380,000 419,387 (39,387)
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION (Continued)
Final Over
BudgetActualBudget
Major Funds:
Special Revenue Funds:
Tax Increment District No. 3 - 669,273 (669,273)
Nonmajor Funds:
Special Revenue Funds:
Economic Development Authority 350,534 2,014,596 (1,664,062)
Tax Increment District No. 4 356,431 388,553 (32,122)
Community Development Block Grant 44,820 494,465 (449,645)
City Initiatives Grant 33,885 425,938 (392,053)
Capital Project Funds:
Street Reconstruction - 152,002 (152,002)
B. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2012 in the following funds:
Unassigned deficit fund balance
Major Funds:
Tax Increment District No. 51,419,205$
Infrastructure Construction2,005,796
Unrestricted deficit net position
Major Funds:
Golf Course794,370
The deficits are being funded through internal borrowing and will be repaid from future collections of tax increment,
future bond issuance or internal borrowings, and internal transfers from the General Fund.
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.
At year-end, the City’s carrying value amount of deposits was $ (63,440) composed of bank balances of $ 0.
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS (Continued)
As of December 31, 2012 the City had the following investments and maturities:
Investment Maturities
Investment TypeRatingFair Value< 1 year1-5 yearsNo maturity
Negotiable Certificates of DepositN/A2,945,666$ 1,226,839$ 1,718,827$ -$
Federal Home Loan Mortgage CorpAAA2,020,320 - 2,020,320 -
External investment pool - 4M FundN/A24,024,606 - - 24,024,606
Money marketAAA10,619,171 - - 10,619,171
Total investments39,609,763 1,226,839$ 3,739,147$ 34,643,777$
Deposits(63,440)
Petty cash and change funds13,485
Total cash and investments39,559,808$
Reconciliation to Statement of Net Position (Statement 1):
Cash, cash equivalents, and investments39,495,808
Restricted cash and investments64,000
Total cash and investments39,559,808$
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 as listed in Note 1.D. 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, 2012 the City’s investment in Federal Home Loan Mortgage Corporation notes were rated AAA by
Moody’s Investor Service. The City’s external investment pool is with the Minnesota Municipal Money Market Fund
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 is based on an amortized cost method that approximates fair value.
Concentration of credit risk – The City’s investment policy requires that the investment portfolio be diversified to
minimize potential losses on individual securities. As of December 31, 2012 the City’s portfolio was allocated as
follows: External Investment Pool-4M Fund 60.65%, Money Market 26.81%, Negotiable Certificates of Deposit 7.44%,
and Federal Home Loan Mortgage Corp 5.10%.
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. Investments in investment pools and money markets are not
evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk
disclosures. All of the City’s remaining investments were held in an institutional trust under contract with the City for
safekeeping services.
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
B. RESTRICTED CASH AND INVESTMENTS
The City holds cash as deposit for certain private development projects within the City to ensure compliance with
development agreements. The use of these deposits is restricted to fulfilling the requirements of the agreement if the
developer does not comply with those requirements or refunding to the developer when the requirements have been met.
At December 31, 2012 the total of these deposits was $ 64,000.
C. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2012 are as follows:
DelinquentDelinquent
propertytaxSpecialMunicipalNotes
taxesincrementsassessmentsstate aidreceivable
Major Funds:
General63,385$ -$ 28,704$ -$ -$
Tax Increment District No. 3 - 30,100 - - -
Tax Increment District No. 5 - - - - 1,090,000
G.O. Improvement Bonds - - 1,178,489 - -
Infrastructure Construction - - 2,032,404 - -
Water Utility - - 120,749 - -
Nonmajor Funds
Municipal State Aid for Construction - - - 2,343,304 -
Total 63,385$ 30,100$ 3,360,346$ 2,343,304$ 1,090,000$
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 five years, commencing on August 1, 2011
and calls for monthly lease payments based on square-footage. Lease revenue for the year ended December 31, 2012
was $ 13,200. Future minimum lease payments are $ 13,200 for 2013 through 2015, and $ 7,700 for 2016.
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:
UnavailableUnearnedTotals
Delinquent property taxes receivable (General Fund)253,535$ -$ 253,535$
Delinquent property taxes receivable (Nonmajor Funds)25,382 - 25,382
Delinquent tax increment receivable (Tax Increment District No. 3)120,389 - 120,389
Special assessments not yet due (General Fund)161,724 - 161,724
Special assessments not yet due (G. O. Improvement Bonds)1,503,642 - 1,503,642
Special assessments not yet due (Infrastructure Construction)2,337,645 - 2,337,645
Fees received but unearned (General Fund)- 8,851 8,851
Invoices not collected (General Fund)9,023 - 9,023
Invoices not collected (Infrastructure Construction)52,823 - 52,823
Assets held for resale (Tax Increment District No. 3)9,455,117 - 9,455,117
Assets held for resale (Nonmajor Funds)537,000 - 537,000
Interest on developer loans (Tax Increment District No. 5)90,000 - 90,000
Interest on interfund loan (Tax Increment District No. 2)19,205 - 19,205
Total deferred/unearned revenue for governmental funds 14,565,485$ 8,851$ 14,574,336$
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
D. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 was as follows:
Beginning Ending
BalanceIncreasesDecreasesAdjustmentsBalance
Governmental activities:
Capital assets, not being depreciated:
Land 3,537,473$ 107,932$ (107,932)$ -$ 3,537,473$
Easements - perpetual 88,704 - - - 88,704
Construction in progress 3,249,855 392,715 (3,461,408) 5,603 186,765
Total capital assets, not being depreciated 6,876,032 500,647 (3,569,340) 5,603 3,812,942
Capital assets, being depreciated:
Easements - temporary 22,715 - - - 22,715
Buildings and improvements 19,261,836 305,064 - - 19,566,900
Park improvements 10,125,640 123,252 (27,743) - 10,221,149
Departmental equipment 8,660,039 698,822 (573,023) - 8,785,838
Streets 36,223,255 3,131,152 - - 39,354,407
Total capital assets, being depreciated 74,293,485 4,258,290 (600,766) - 77,951,009
Less accumulated depreciation for:
Easements - temporary 2,661 4,550 - - 7,211
Buildings and improvements 9,859,055 661,202 - - 10,520,257
Park improvements 3,698,407 284,862 (15,538) - 3,967,731
Departmental equipment 4,764,829 688,112 (536,318) - 4,916,623
Streets 12,968,249 1,235,151 - - 14,203,400
Total accumulated depreciation 31,293,201 2,873,877 (551,856) - 33,615,222
Total capital assets being depreciated - net43,000,284 1,384,413 (48,910) - 44,335,787
Governmental activities capital assets - net49,876,316$ 1,885,060$ (3,618,250)$ 5,603$ 48,148,729$
Beginning Ending
BalanceIncreasesDecreasesAdjustmentsBalance
Business-type activities:
Capital assets, not being depreciated:
Land 3,194,983$ -$ -$ -$ 3,194,983$
Easements - perpetual 10,285 - - - 10,285
Construction in progress 4,114,763 64,687 (4,115,891) (5,603) 57,956
Total capital assets, not being depreciated 7,320,031 64,687 (4,115,891) (5,603) 3,263,224
Capital assets, being depreciated:
Easements - temporary 20,335 - - - 20,335
Land improvements 393,467 - - - 393,467
Buildings and improvements 18,697,504 - - - 18,697,504
Department equipment 751,718 162,080 - - 913,798
Street light systems 425,860 - - - 425,860
Mains and lines 60,177,016 4,243,635 - - 64,420,651
Total capital assets, being depreciated 80,465,900 4,405,715 - - 84,871,615
Less accumulated depreciation for:
Easements - temporary 2,382 4,073 - - 6,455
Land improvements 200,183 14,691 - - 214,874
Buildings and improvements 13,133,869 679,918 - - 13,813,787
Department equipment 558,388 41,221 - - 599,609
Street light systems 39,504 28,448 - - 67,952
M ains and lines 28,800,477 2,225,475 - - 31,025,952
Total accumulated depreciation 42,734,803 2,993,826 - - 45,728,629
Total capital assets being depreciated - net37,731,097 1,411,889 - - 39,142,986
Business-type activities capital assets - net45,051,128$ 1,476,576$ (4,115,891)$ (5,603)$ 42,406,210$
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
D. CAPITAL ASSETS (Continued)
Adjustments were made to the capital asset balances to correct costs within construction in progress between the
governmental activities and the business-type activities in 2012. Additionally, easements in the business-type activities
were moved from perpetual to temporary.
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government85,870$
Public safety 393,596
Public works 1,515,754
Parks and recreation 226,360
Capital assets held by the governments internal service funds are
charged to the various functions based on their usage of the assets 652,297
Total depreciation expense - governmental activities 2,873,877$
Business-type activities:
Municipal liquor 11,312$
Golf course 28,261
Earle Brown Heritage Center 672,539
Water utility 622,806
Sanitary sewer utility 647,861
Storm drainage utility 982,599
Street light utility 28,448
Total depreciation expense - business-type activities 2,993,826$
CONSTRUCTION COMMITMENTS
At December 31, 2012 the City had construction project contracts in progress. The commitments related to remaining
contract balances are summarized as follows:
ContractRemaining
Project Responsible Fund AmountCommitment
Earle Brown Drive/Opportunity Site LightingInfrastructure Construction 220,883$ 192,900$
Pond dredging Storm Drainage Utility 141,059 107,271
Evergreen Park Athletic Field LightingNonmajor Capital Projects Fund 48,299 27,845
Total all funds 410,241$ 328,016$
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
E. INTERFUND BALANCES AND TRANSFERS
Individual fund due from and due to other fund balances at December 31, 2012 are as follows:
Due fromDue to
FundOther FundsOther Funds
Major Funds:
General28,385$ -$
Infrastructure Construction - 23,000
Storm Drainage Utility 23,000 -
Nonmajor Funds:
Community Development Block Grant - 28,385
Total 51,385$ 51,385$
The $ 51,385 between these funds is expected to be eliminated within one year of December 31, 2012.
Individual fund advances to and advances from other funds at December 31, 2012 are as follows:
Advances to Advances From
FundOther FundsOther Funds
Major Funds:
Tax Increment District No. 22,419,205$ -$
Tax Increment District No. 5 - 2,419,205
Golf Course - 792,488
Nonmajor Funds:
Capital Improvements 792,488 -
3,211,693$ 3,211,693$
The $ 2,419,205 advance between the Tax Increment District No. 2 and the Tax Increment District No. 5 funds was
made to provide funding for a specific development project within the City. The financing plan adopted for the Tax
Increment District No. 5 has the repayment of principal scheduled to begin in 2024. The $792,488 advance between the
Golf Course and Capital Improvements funds was made to fund improvements for the golf course. This advance is not
expected to be eliminated within one year of December 31, 2012.
Individual fund interfund receivable and payable balances at December 31, 2012 are as follows:
InterfundInterfund
FundReceivablePayable
Major Funds:
Infrastructure Construction-$ 1,931,900$
Water Utility6,896 -
Nonmajor Funds:
Municipal State Aid for Construction- 30,839
Recycling- 6,896
Central Garage1,962,739 -
1,969,635$ 1,969,635$
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
E. 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. Balances will be paid with transfers from other funds, collections of outstanding receivables, and
internal borrowing to finance completed infrastructure projects.
Interfund transfers:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General119,712$ 322,614$
Tax Increment District No. 3- 1,578,350
Infrastructure Construction436 -
Nonmajor Funds:
Housing and Redevelopment Authority- 299,771
Economic Development Authority299,771 -
Community Development Block Grant- 119,712
City Initiatives Grant52,614 -
Tax Increment Bonds1,578,350 -
Capital Improvements200,000 -
Technology70,000 -
Total governmental funds2,320,883 2,320,447
Proprietary Funds:
Major Funds:
Municipal Liquor- 200,000
Golf Course200,000 -
Nonmajor Funds:
Street Light Utility- 436
Total proprietary funds200,000 200,436
Total all funds2,520,883$ 2,520,883$
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
E. 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 2012,
the following non-routine transfers were made between funds:
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 - $ 119,712.
A transfer from the General fund to the City Initiatives Grant fund was approved by the City Council to be
donated to Brooklyn Center High School for the youth recreation center project - $ 50,000.
A transfer from the General fund to the City Initiatives Grant fund was made to move the donations received in
previous years for the community amphitheater - $ 2,614.
A transfer from the General fund to the Golf Course fund was approved by the City Council to replenish the
negative operating cash balance - $ 200,000.
The transfer from the Street Light Utility fund to the Infrastructure Construction fund was to pay the street light
portion of construction projects - $ 436.
F. OPERATING LEASES
The City leases space for its municipal liquor stores. The leases are ten-year leases and began in 2003 and 2010. The
lease that began in 2003 has an option for a ten-year extension; the extension has been exercised on the lease that began
in 2010. 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, 2012 was $ 296,964. Future minimum base rent payments under the current agreements are as follows:
Year Total
EndingMinimum Rents
2013 224,940$
2014 131,580
2015136,554
2016141,528
2017141,528
2018-2020 353,820
1,129,950$
G. 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.
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
G. LONG-TERM DEBT (Continued)
As of December 31, 2012 the long-term debt of the financial reporting entity consisted of the following:
GOVERNMENTAL ACTIVITIES
Final
InterestMaturityOriginalPayable
RatesDateDateIssue12/31/12
General Obligation Bonds:
Police and Fire Building Refunding Bonds2.00%-3.35%12/01/200402/01/20135,045,000$ 700,000$
Total General Obligation Bonds5,045,000 700,000
G.O. Tax Increment Bonds:
Taxable Tax Increment Bonds of 20044.75%-5.125%12/01/200402/01/202017,245,000 12,045,000
Taxable Tax Increment Bonds of 20083.00%-5.30%05/01/200802/01/20184,335,000 750,000
Total G.O. Tax Increment Bonds21,580,000 12,795,000
G.O. Improvement Bonds:
2003 Improvement Bonds1.45%-4.00%01/01/200302/01/20131,205,000 105,000
2004 Improvement Bonds2.10%-3.65%12/01/200402/01/20151,010,000 275,000
2006 Improvement Bonds3.55%-3.80%12/01/200602/01/20171,460,000 610,000
2008 Improvement Bonds3.25%-4.25%12/15/200802/01/20192,390,000 1,600,000
Total G.O. Improvement Bonds6,065,000 2,590,000
Total - bonded indebtedness32,690,000$ 16,085,000
Other Liabilities:
Compensated absences payable 1,264,220
Net OPEB obligation 487,353
Total - other liabilities 1,751,573
Total governmental activities 17,836,573$
All long-term bonded indebtedness outstanding at December 31, 2012 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, 2012 were $ 120,389; delinquent special assessments in the
governmental funds at December 31, 2012 were $ 64,275, which is included in the special assessments receivable
balance of $ 4,019,409.
The G.O. Improvement Bonds were issued to finance the construction and replacement of street and storm drainage
capital assets. Of the $ 2,590,000 outstanding at December 31, 2012 the amounts applicable to street and storm capital
assets is $ 2,187,100 and $ 402,900, respectively.
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
G. LONG-TERM DEBT
GOVERNMENTAL ACTIVITIES (Continued)
Annual debt service requirements to maturity for governmental activities long-term debt are as follows:
Governmental Activities
Year EndingGeneral Obligation BondsG.O. Tax Increment BondsG.O. Improvement Bonds
December 31PrincipalInterestPrincipalInterestPrincipalInterest
2013700,000$ 11,725$ 1,365,000 598,106$ 590,000$ 88,869$
2014- - 1,430,000 532,100 475,000 69,427
2015- - 1,505,000 462,394 465,000 51,695
2016- - 1,575,000 388,900 370,000 35,485
2017- - 1,665,000 309,338 300,000 22,280
2018-2020- - 5,255,000 406,412 390,000 14,972
Total700,000$ 11,725$ 12,795,000$ 2,697,250$ 2,590,000$ 282,728$
BUSINESS-TYPE ACTIVITIES
Final
InterestMaturityOriginalPayable
RatesDateDateIssue12/31/12
General Obligation Taxable Utility Revenue Bonds
(Build America Bonds - Direct Pay)0.70%-5.10%03/08/201002/01/20252,350,000$ 2,075,000$
Annual debt service requirements to maturity for business-type activities long-term debt are as follows:
Business-Type Activities
Year EndingG.O. Revenue Bonds
December 31PrincipalInterest
2013 135,000$ 80,246$
2014 140,000 77,490
2015 140,000 74,095
2016 145,000 70,100
2017 150,000 65,375
2018-2022810,000 232,507
2023-2025555,000 42,488
Total2,075,000$ 642,301$
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
G. LONG-TERM DEBT
BUSINESS-TYPE ACTIVITIES (Continued)
The utility revenue bonds are backed by the full faith and credit of the City. Bonds in the business-type activities will be
retired with the net revenues of the Water Utility and Sanitary Sewer Utility systems. (Net revenues of each system are
defined as the excess of gross revenues and earnings over the normal, reasonable, and current costs of operating and
maintaining the system.) In the event that a deficiency exists because of inadequate net revenues at the time a debt
service payment is due, the City must provide resources to cover the deficiency until other resources are available. Net
revenues in the Water Utility and Sanitary Sewer Utility Funds at December 31, 2012 were $ 841,375 which exceeds the
amount required for payment of principal and interest in 2013.
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2012 was as follows:
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds 1,385,000$ -$ (685,000)$ 700,000$ 700,000$
G.O. tax increment bonds 13,720,000 - (925,000) 12,795,000 1,365,000
G.O. improvement bonds 3,260,000 - (670,000) 2,590,000 590,000
Total bonds payable 18,365,000 - (2,280,000) 16,085,000 2,655,000
Compensated absences 1,175,408 117,486 (28,674) 1,264,220 126,422
Net pension obligation 52,199 - (52,199) - -
Net OPEB obligation 410,810 76,543 - 487,353 -
Total government activity
long-term liabilities 20,003,417$ 194,029$ (2,360,873)$ 17,836,573$ 2,781,422$
Business-type activities:
Utility revenue bonds 2,210,000$ -$ (135,000)$ 2,075,000$ 135,000$
Compensated absences are liquidated by the Public Employees Compensated Absences Fund and the net OPEB
obligation by the Public Employees Retirement Fund.
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, 2012 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, 2012 is $ 28,907,515.
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS (Continued)
H. FUND EQUITY
Net position reported in the government-wide statement of net position at December 31, 2012 include the following:
Governmental activities
Net investment in capital assets:
Land and easements 3,626,177$
Construction in progress 186,765
Other capital assets, net of depreciation 44,335,787
Less: related long-term debt outstanding (2,887,100)
Total net investment in capital assets 45,261,629
Restricted:
Debt service 4,745,078
Tax increment purposes 15,148,835
Economic development 1,780,524
Public safety 46,536
Community amphitheater 120,588
Insurance premium reduction program 77,539
Street reconstruction/maintenance 2,340,192
Total restricted 24,259,292
Unrestricted 5,875,289
Total governmental activities net position 75,396,210$
Related debt for governmental activities capital assets includes $ 700,000 in General Obligation Bonds and $ 2,187,100
in G.O. Improvement Bonds, the amount issued to finance the street portion of construction projects. The remaining
$ 402,900 of the G.O. Improvement Bonds outstanding was issued to finance the storm drainage portion of construction
projects.
Business-type activities
Net investment in capital assets:
Land and easements3,205,268$
Construction in progress57,956
Other capital assets, net of depreciation39,142,986
Total net investment in capital assets42,406,210
Unrestricted11,856,924
Total business-type activities net position54,263,134$
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 DETAILED NOTES ON ALL FUNDS
H. FUND EQUITY (Continued)
Governmental fund balances reported on the fund financial statements as of December 31, 2012 include the following:
Major funds
G. O.Nonmajor
GeneralTax IncrementTax IncrementTax IncrementImprovementInfrastructureGovernmental
FundDistrict No. 3District No. 2District No. 5BondsConstructionFundsTotal
Nonspendable:
Prepaid items500$ -$ -$ -$ -$ -$ -$ 500$
Inventories88,452 - - - - - - 88,452
Total nonspendable88,952 - - - - - - 88,952
Restricted for:
Statutory housing obligation- 1,014,568 - - - - - 1,014,568
Tax increment financing- 1,515,535 2,853,309 - - - 170,712 4,539,556
Debt service- - - - 2,358,707 - 1,177,528 3,536,235
Economic development- - - - - - 1,237,143 1,237,143
Public safety- - - - - - 46,536 46,536
Community amphitheater- - - - - - 120,588 120,588
Insurance premium reduction program- - - - - - 77,539 77,539
Street construction/maintenance- - - - - - 2,340,192 2,340,192
Total restricted - 2,530,103 2,853,309 - 2,358,707 - 5,170,238 12,912,357
Committed for:
Public safety - - - - - - 57,641 57,641
Recreation activities - - - - - - 58,770 58,770
Cable television - - - - - - 119,188 119,188
Capital expenditures - - - - - - 1,458,624 1,458,624
Capital improvements - - - - - - 892,786 892,786
Street reconstruction - - - - - - 1,037,188 1,037,188
Technology improvements - - - - - - 27,798 27,798
Total committed - - - - - - 3,651,995 3,651,995
Unassigned:
Reported in 10,597,944 - - (1,419,205) - (2,005,796) - 7,172,943
Total fund balances 10,686,896$ 2,530,103$ 2,853,309$ (1,419,205)$ 2,358,707$ (2,005,796)$ 8,822,233$ 23,826,247$
The City has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target
unassigned fund balance amount of 50-52% of the next year’s operating budget for cash flow needs (working capital).
At December 31, 2012 the unassigned fund balance of the General fund was 61.0% of the subsequent year’s budgeted
expenditures.
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
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 General Employees
Retirement Fund (GERF) 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.
GERF 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 GERF 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.
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
1. DEFINED BENEFIT PENSION PLAN (Continued)
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. GERF Coordinated Plan members are required to contribute 6.25% of their
annual covered salary. PEPFF members are required to contribute 9.60% of their annual covered salary. The City is
required to contribute the following percentages of annual covered payroll: 7.25% for Coordinated Plan GERF
members and 14.40% for PEPFF members. The City’s contributions to the General Employees Retirement Fund for
the years ending December 31, 2012, 2011, and 2010 were $ 498,832, $ 492,194, and $ 470,559, respectively. The
City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2012, 2011,
and 2010 were $ 544,497, $ 522,110, and $ 497,538, respectively. The City’s contributions were equal to the
contractually required contributions for each year as set by state statute.
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.
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION (Continued)
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 2012 were $ 152,503 of which $ 96,982 was from the State of Minnesota for 2012,
$ 12,711 was contributed by the City for 2012, and $ 42,810 was contributed by the City for 2011. The actuarially
determined contribution based on an actuarial valuation performed at January 1, 2011 was $ 111,463, which
represents funding for normal cost.
The City’s $ 109,693 contribution to the Association for 2012 was recorded as intergovernmental revenue
($ 96,982) and property tax revenue ($ 12,711); the City’s $ 42,810 contribution for 2011 was paid from the 2011
General fund unassigned fund balance. The total $ 152,503 was recorded as fire department expenditure in the
General Fund.
The information below is the most recent data available.
Actuarial valuation date 1/1/2011
Actuarial cost method Entry age normal cost method
Amortization method Level dollar amount amortized
on a closed basis
Remaining amortization period 8 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
AnnualPercentageNet
YearPensionof APCPension
EndingCost (APC)ContributedObligation
12/31/2010 183,928$ 93%18,231$
12/31/2011 134,087 70%52,199
12/31/2012 105,244 104%-
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION (Continued)
SCHEDULE OF FUNDING PROGRESS
Assets in
Excess of
ActuarialActuarialActuarial(Unfunded)
ValuationValue ofAccruedAccruedFunded
DateAssetsLiabilityLiabilityRatio
01/01/20074,024,987$ 3,713,292$ 311,695$ 108.4%
01/01/20092,654,832 3,240,590 (585,758) 81.9%
01/01/20113,303,595 3,253,686 49,909 101.5%
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.
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS
BENEFITS PROVIDED (Continued)
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.
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, 2012, participants consisted of:
Retirees for which the City is paying the single premium15
Retirees and beneficiaries currently purchasing
health insurance through the City2
Disabled police officers2
Active employees151
Total170
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, 2012 was calculated as follows:
73
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS
ANNUAL OPEB COSTS AND NET OPEB OBLIGATION (Continued)
Annual required contribution 242,652$
Interest on net OPEB obligation 18,486
Adjustment to ARC (25,220)
Annual OPEB cost 235,918
Employer Contributions
Direct 116,521
Indirect Implicit Rate Subsidy 42,854
Increase (decrease) in net OPEB obligation 76,543
Net OPEB obligation, beginning of year 410,810
Net OPEB obligation, end of year 487,353$
The City had an actuarial valuation performed for the plan as of January 1, 2012 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, 2012. The City’s annual
OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the past three
years were as follows:
Percentage of
Fiscal YearAnnual OPEBEmployerAnnual OPEB CostNet OPEB
EndedCostContributionsContributedObligation
December 31, 2010 266,232$ 191,807$ 72.05%364,851$
December 31, 2011 256,278 210,319 82.07%410,810
December 31, 2012 235,918 159,375 67.56%487,353
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
ActuarialActuarialActuarialActuarialUAAL as a
ValuationValue ofAccruedAccruedFundedCoveredPercentage of
DateAssetsLiability (AAL)Liability (UAAL)RatioPayrollCovered Payroll
January 1, 2008-$ 3,996,136$ 3,996,136$ 0.00%8,882,315$ 44.99%
January 1, 2010 - 3,012,383 3,012,383 0.00%9,143,276 32.95%
January 1, 2012 - 2,620,367 2,620,367 0.00%9,472,237 27.66%
74
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
C. OTHER POST-EMPLOYMENT BENEFITS (Continued)
ACTUARIAL METHODS AND 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.
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, 2012 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 9.0% reduced by 0.33% each year to arrive at an ultimate health care cost trend rate of 5.0%. Both rates include a
3.0% inflation assumption. The actuarial value of assets is $0. The plans’ unfunded actuarial accrued liability is being
amortized as of the valuation date with a payroll growth rate of 3.75% over 30 years on an open basis.
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.
75
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 OTHER INFORMATION
F. CONTINGENT LIABILITIES (Continued)
In December 2012, the City entered into a tax increment revenue note with a developer whereby the City will pay the
developer the available tax increments as defined in the Tax Increment Development Agreement. 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.
A schedule of the notes outstanding at December 31, 2012 is as follows:
Amended
or Original12/31/2012InterestMaturity
NotePrincipalBalanceRateDate
Twin Lakes Business Park2,424,199$ 1,295,496$ 8.00%01/31/2021
Shingle Creek Crossing Project2,300,000$ 2,300,000$ 6.00%02/01/2028
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 2012 financial statements of the City is $ 440,871
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 2012 health and life insurance costs paid by the City was $ 1,203,607. 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.
76
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 5
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts (Negative)
REVENUES
Taxes:
Property taxes13,169,534$ 13,169,534$ 13,334,480$ 164,946$
Market value homestead credit- - 2,217 2,217
Penalties and interest38,420 38,420 47,295 8,875
Lodging tax 800,000 800,000 882,620 82,620
Total taxes14,007,954 14,007,954 14,266,612 258,658
Special assessments- - 91,298 91,298
Licenses and permits:
Liquor and beer licenses89,500 89,500 103,305 13,805
Building permits250,000 250,000 331,404 81,404
Mechanical permits45,000 45,000 85,812 40,812
Sewer and water permits1,200 1,200 3,513 2,313
Plumbing permits30,000 30,000 38,056 8,056
Garbage licenses3,190 3,190 3,150 (40)
Taxicab licenses100 100 - (100)
Mechanical licenses8,000 8,000 9,755 1,755
Service station licenses2,600 2,600 1,900 (700)
Vehicle dealer licenses1,250 1,250 1,750 500
Bowling licenses720 720 720 -
Cigarette licenses3,450 3,450 3,505 55
Sign permits2,500 2,500 8,550 6,050
Rental dwelling licenses 139,722 139,722 180,992 41,270
Amusement licenses 700 700 785 85
Electrical Permits49,000 49,000 72,284 23,284
ROW permits3,000 3,000 8,290 5,290
Miscellaneous licenses and permits5,635 5,635 4,822 (813)
Total licenses and permits635,567 635,567 858,593 223,026
Intergovernmental:
Federal:
Other federal grants125,000 125,000 - (125,000)
State:
Local government aid 200,000 200,000 411,378 211,378
Local performance aid- - 4,215 4,215
Police pension aid295,000 295,000 304,748 9,748
PERA aid34,365 34,365 34,365 -
Fireperson pension aid120,000 120,000 96,982 (23,018)
Police training- - 15,940 15,940
Other state grants- - 7,070 7,070
Local:
Miscellaneous grants69,950 69,950 91,781 21,831
Total intergovernmental844,315 844,315 966,479 122,164
Charges for services:
General government charges218,050 218,050 305,500 87,450
Public safety charges84,100 84,100 84,566 466
Community development fees 20,000 20,000 5,305 (14,695)
Recreation fees 296,582 296,582 263,045 (33,537)
Community Center fees 390,100 390,100 388,210 (1,890)
Total charges for services1,008,832 1,008,832 1,046,626 37,794
77
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 5
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts (Negative)
Revenues (continued):
Fines and forfeits348,500$ 348,500$ 336,740$ (11,760)$
Miscellaneous:
Investment earnings (net of market value change)35,000 35,000 22,932 (12,068)
Other 60,000 60,000 282,297 222,297
Total miscellaneous 95,000 95,000 305,229 210,229
Total revenues 16,940,168 16,940,168 17,871,577 931,409
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services 49,799 49,799 48,563 1,236
Supplies 1,050 1,050 1,582 (532)
Services and other charges 81,400 81,400 70,545 10,855
Total mayor and council 132,249 132,249 120,690 11,559
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services 672,391 672,391 695,264 (22,873)
Supplies 6,025 6,025 4,900 1,125
Services and other charges 56,564 56,564 58,469 (1,905)
Total administrative office 734,980 734,980 758,633 (23,653)
Elections and voter registration:
Current:
Personal services 67,021 67,021 66,655 366
Supplies 1,000 1,000 642 358
Services and other charges 44,000 44,000 43,012 988
Total elections and voter registration 112,021 112,021 110,309 1,712
Assessor's office:
Current:
Personal services 269,197 269,197 265,269 3,928
Supplies 2,000 2,000 1,537 463
Services and other charges 90,956 90,956 68,110 22,846
Total assessor's office 362,153 362,153 334,916 27,237
Finance:
Current:
Personal services 468,882 468,882 471,907 (3,025)
Supplies 3,750 3,750 3,973 (223)
Services and other charges 32,230 32,230 29,675 2,555
Total finance 504,862 504,862 505,555 (693)
Legal:
Current:
Services and other charges 380,000 380,000 374,696 5,304
78
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 5
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts (Negative)
Expenditures:
General government (continued):
Government buildings:
Current:
Personal services254,033$ 254,033$ 263,509$ (9,476)$
Supplies84,650 84,650 107,742 (23,092)
Services and other charges392,779 392,779 412,728 (19,949)
Total government buildings731,462 731,462 783,979 (52,517)
Information technology:
Current:
Personal services210,248 210,248 214,716 (4,468)
Supplies6,900 6,900 3,433 3,467
Services and other charges208,216 208,216 184,002 24,214
Total information technology 425,364 425,364 402,151 23,213
Total general government 3,383,091 3,383,091 3,390,929 (7,838)
Public safety:
Police protection:
Current:
Personal services5,677,129 5,677,129 5,727,485 (50,356)
Supplies124,134 124,134 110,234 13,900
Services and other charges1,020,022 1,020,022 1,023,089 (3,067)
Total police protection6,821,285 6,821,285 6,860,808 (39,523)
Fire protection:
Current:
Personal services623,792 623,792 597,447 26,345
Supplies80,100 80,100 61,482 18,618
Services and other charges293,249 293,249 288,471 4,778
Total fire protection997,141 997,141 947,400 49,741
Protective inspection:
Current:
Personal services801,754 801,754 725,619 76,135
Supplies8,951 8,951 9,228 (277)
Services and other charges174,506 174,506 144,963 29,543
Total protective inspection985,211 985,211 879,810 105,401
Emergency preparedness:
Current:
Personal services68,428 68,428 68,364 64
Supplies500 500 19,306 (18,806)
Services and other charges5,300 5,300 4,159 1,141
Total emergency preparedness74,228 74,228 91,829 (17,601)
Total public safety8,877,865 8,877,865 8,779,847 98,018
79
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 5
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts (Negative)
Expenditures (continued):
Public works:
Engineering department:
Current:
Personal services560,474$ 560,474$ 496,617$ 63,857$
Supplies13,215 13,215 12,659 556
Services and other charges48,666 48,666 49,470 (804)
Total current622,355 622,355 558,746 63,609
Capital outlay - - 27,091 (27,091)
Total engineering department622,355 622,355 585,837 36,518
Street department:
Current:
Personal services714,165 714,165 733,422 (19,257)
Supplies127,170 127,170 70,554 56,616
Services and other charges678,151 678,151 626,495 51,656
Total street department1,519,486 1,519,486 1,430,471 89,015
Total public works2,141,841 2,141,841 2,016,308 125,533
Community services:
Social services:
Current:
Services and other charges97,250 97,250 141,505 (44,255)
Parks and recreation:
Administration:
Current:
Personal services190,369 190,369 186,930 3,439
Supplies1,500 1,500 1,535 (35)
Services and other charges4,230 4,230 974 3,256
Total administration196,099 196,099 189,439 6,660
Recreation programs:
Current:
Personal services469,483 469,483 467,612 1,871
Supplies36,597 36,597 28,839 7,758
Cost of good sold to public2,070 2,070 773 1,297
Services and other charges210,385 210,385 167,390 42,995
Total recreation programs718,535 718,535 664,614 53,921
Community center:
Current:
Personal services363,174 363,174 321,896 41,278
Supplies 31,600 31,600 38,098 (6,498)
Services and other charges 160,500 160,500 168,527 (8,027)
Total community center 555,274 555,274 528,521 26,753
80
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 5
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts (Negative)
Expenditures:
Parks and recreation (continued):
Park maintenance:
Current:
Personal services579,982$ 579,982$ 569,336$ 10,646$
Supplies47,680 47,680 55,239 (7,559)
Services and other charges361,010 361,010 367,962 (6,952)
Total current988,672 988,672 992,537 (3,865)
Capital outlay - - 32,585 (32,585)
Total park maintenance988,672 988,672 1,025,122 (36,450)
Total parks and recreation2,458,580 2,458,580 2,407,696 50,884
Economic development:
Convention bureau:
Current:
Services and other charges380,000 380,000 419,387 (39,387)
Nondepartmental:
Expenditures not charged to departments:
Current:
Personal services(100,000) (100,000) - (100,000)
Supplies26,350 26,350 19,139 7,211
Services and other charges552,314 552,314 268,553 283,761
Total nondepartmental478,664 478,664 287,692 190,972
Total expenditures17,817,291 17,817,291 17,443,364 373,927
Revenues over (under) expenditures(877,123) (877,123) 428,213 1,305,336
OTHER FINANCING SOURCES (USES)
Transfers in - administrative services reimbursed 964,302 964,302 700,065 (264,237)
Transfers from other funds- - 119,712 119,712
Transfers to other funds(70,000) (70,000) (322,614) (252,614)
Sale of assets- - 600 600
Insurance recoveries- - 30,085 30,085
Total other financing sources (uses)894,302 894,302 527,848 (366,454)
Net increase (decrease) in fund balance 17,179$ 17,179$ 956,061 938,882$
Fund balance - January 1 9,730,835
Fund balance - December 31 10,686,896$
81
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - TAX INCREMENT DISTRICT NO. 3
For the Year Ended December 31, 2012
Variance with
Final Budget -
Budgeted AmountsPositive
OriginalFinalActual(Negative)
REVENUES
Tax increments1,736,200$ 1,736,200$ 2,388,702$ 652,502$
Investment earnings (net of market value adjustment)12,000 12,000 3,961 (8,039)
Total revenues 1,748,200 1,748,200 2,392,663 644,463
EXPENDITURES
Current:
Economic development:
Services and other charges - - 669,273 (669,273)
Revenues over (under) expenditures 1,748,200 1,748,200 1,723,390 (24,810)
OTHER FINANCING SOURCES (USES)
Transfers out (1,576,744) (1,576,744) (1,578,350) (1,606)
Net increase (decrease) in fund balance 171,456$ 171,456$ 145,040 (26,416)$
Fund balance - January 12,385,063
Fund balance - December 312,530,103$
82
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS
For the Year Ended December 31, 2012
Unfunded
ActuarialActuarialActuarialActuarial UAAL as a
ValuationValue ofAccrued Accrued Funded CoveredPercentage of
DateAssetsLiability (AAL)Liability (UAAL)RatioPayrollCovered Payroll
January 1, 2008-$ 3,996,136$ 3,996,136$ 0.00%8,882,315$ 44.99%
January 1, 2010- 3,012,383 3,012,383 0.00%9,143,276 32.95%
January 1, 2012- 2,620,367 2,620,367 0.00%9,472,237 27.66%
The City implemented GASB Statement No. 45 for the year ended December 31, 2008.
Information for prior years is not available.
83
CITY OF BROOKLYN CENTER, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
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 Earle Brown Tax Increment District and
the Tax Increment District No. 5 Special Revenue Funds did not have a legally adopted budget for 2012.
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
BudgetActualBudget
Major Funds:
General Fund:
Administrative 734,980$ 758,633$ (23,653)$
Finance 504,862 505,555 (693)
Government buildings 731,462 783,979 (52,517)
Police protection 6,821,285 6,860,808 (39,523)
Emergency preparedness 74,228 91,829 (17,601)
Social services 97,250 141,505 (44,255)
Park maintenance 988,672 1,025,122 (36,450)
Convention bureau 380,000 419,387 (39,387)
Special Revenue Funds:
Tax Increment District No. 3 - 669,273 (669,273)
84
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.
Housing and Redevelopment Authority Fund (HRA) - 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.
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 (CDBG) - 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.
Early Retiree Reinsurance Program Fund – This fund was established in 2011 to account for federal
reimbursements received for the increase in health insurance premiums paid by the City due to the state
requirement that premiums for current and retired employees be blended. This money must be used to
reduce future health insurance premiums for current employees.
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.
General Obligation Bonds Fund – This fund is used to account for the accumulation of resources for
payment of general obligation bonds and interest thereon.
Tax Increment Bonds Fund – This fund is used to account for the payment of tax increment general
obligation bonds and interest thereon. These bonds were sold to finance the purchase and
redevelopment of various redevelopment projects within the City. Financing for this debt is transferred
from the Tax Increment District No. 3 Fund as needed.
85
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).
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 for Construction Fund - This fund was established to account for the state allotment
of gasoline tax collections used for transportation related construction and maintenance projects.
Street Reconstruction Fund – This fund accounts for franchise fees collected, which have been dedicated
to the reconstruction of the City’s infrastructure.
Technology Fund - This fund, established in 2003, accounts for funds set aside for technology
improvements or major technology renovations/replacements.
86
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET Statement 13
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
Total
SpecialDebtCapital Nonmajor
RevenueServiceProjectGovernmental
ASSETS
Cash and investments 1,899,751$ 1,170,284$ 2,466,390$ 5,536,425$
Receivables:
Accounts1,965 - 161,737 163,702
Current taxes3,464 7,244 - 10,708
Delinquent taxes6,381 19,001 - 25,382
Due from other governments 153,972 - 2,371,594 2,525,566
Advances to other funds- - 792,488 792,488
Assets held for resale537,000 - - 537,000
Total assets2,602,533 1,196,529 5,792,209 9,591,271
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable50,986 - 3,196 54,182
Accrued salaries and wages18,364 - - 18,364
Due to other funds28,385 - - 28,385
Due to other governments58,300 - 563 58,863
Contracts payable- - 1,023 1,023
Deposits payable15,000 - - 15,000
Interfund payable- - 30,839 30,839
Deferred revenue543,381 19,001 - 562,382
Total liabilities714,416 19,001 35,621 769,038
Fund balances:
Restricted1,652,518 1,177,528 2,340,192 5,170,238
Committed 235,599 - 3,416,396 3,651,995
Total fund balances1,888,117 1,177,528 5,756,588 8,822,233
Total liabilities and fund balances2,602,533$ 1,196,529$ 5,792,209$ 9,591,271$
87
This page has been left blank intentionally.
88
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND Statement 14
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2012
Total
SpecialDebtCapital Nonmajor
RevenueServiceProjectGovernmental
REVENUES
Property taxes301,396$ 704,454$ -$ 1,005,850$
Tax increments318,168 - - 318,168
Franchise fees- - 647,346 647,346
Intergovernmental 2,585,900 - 96,932 2,682,832
Charges for services9,615 - - 9,615
Investment earnings (net of market value adjustment)5,339 2,058 6,674 14,071
Miscellaneous173,329 - 224,832 398,161
Total revenues3,393,747 706,512 975,784 5,076,043
EXPENDITURES
Current:
General government 11,749 - 140,362 152,111
Public safety 310,477 - - 310,477
Public works13,511 - 100,713 114,224
Parks and recreation101,399 - 56,317 157,716
Economic development 2,514,349 - - 2,514,349
Capital outlay:
Public safety 68,161 - - 68,161
Public works- - 108,578 108,578
Parks and recreation- - 237,031 237,031
Debt service:
Principal retirement386,790 1,610,000 - 1,996,790
Interest- 686,325 - 686,325
Fiscal agent fees- 2,414 - 2,414
Total expenditures3,406,436 2,298,739 643,001 6,348,176
Revenues over (under) expenditures(12,689) (1,592,227) 332,783 (1,272,133)
OTHER FINANCING SOURCES (USES)
Transfers in352,385 1,578,350 270,000 2,200,735
Transfers out(419,483) - - (419,483)
Total other financing sources (uses)(67,098) 1,578,350 270,000 1,781,252
Net increase (decrease) in fund balances (79,787) (13,877) 602,783 509,119
Fund balances - January 1 1,967,904 1,191,405 5,153,805 8,313,114
Fund balances - December 31 1,888,117$ 1,177,528$ 5,756,588$ 8,822,233$
89
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
Housing and Economic Tax
Redevelopment Development Increment
Authority Authority District No. 4
ASSETS
Cash and investments -$ 1,260,359$ 222,643$
Receivables:
Accounts- - -
Current taxes3,464 - -
Delinquent taxes6,381 - -
Due from other governments - - -
Asset held for resale- 537,000 -
Total assets9,845 1,797,359 222,643
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable- 1,086 -
Accrued salaries and wages- 10,119 -
Due to other funds- - -
Due to other governments- 475 51,931
Deposits payable- 15,000 -
Deferred revenue6,381 537,000 -
Total liabilities6,381 563,680 51,931
Fund balances:
Restricted3,464 1,233,679 170,712
Committed - - -
Total fund balances3,464 1,233,679 170,712
Total liabilities and fund balances9,845$ 1,797,359$ 222,643$
90
Statement 15
Total
PoliceCommunity City Early Retiree Nonmajor
Drug Development Initiatives Reinsurance Special
Forfeiture Block Grant Grant Program Revenue
46,536$ -$ 292,674$ 77,539$ 1,899,751$
- - 1,965 - 1,965
- - - - 3,464
- - - - 6,381
- 28,385 125,587 - 153,972
- - - - 537,000
46,536 28,385 420,226 77,539 2,602,533
- - 49,900 - 50,986
- - 8,245 - 18,364
- 28,385 - - 28,385
- - 5,894 - 58,300
- - - - 15,000
- - - - 543,381
- 28,385 64,039 - 714,416
46,536 - 120,588 77,539 1,652,518
- - 235,599 - 235,599
46,536 - 356,187 77,539 1,888,117
46,536$ 28,385$ 420,226$ 77,539$ 2,602,533$
91
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, 2012
Housing and Economic Tax
Redevelopment Development Increment
Authority Authority District No. 4
REVENUES
Property taxes301,396$ -$ -$
Tax increments- - 318,168
Intergovernmental - 1,554,981 -
Charges for services- - -
Investment earnings (net of market
value adjustment)- 3,820 162
Miscellaneous - 6,314 -
Total revenues 301,396 1,565,115 318,330
EXPENDITURES
Current:
General government:
Personal services - - -
Public safety:
Personal services - - -
Supplies - - -
Services and other charges - - -
Total public safety - - -
Public works:
Personal services - - -
Parks and recreation:
Personal services - - -
Supplies - - -
Services and other charges - - -
Total parks and recreation - - -
Economic development:
Personal services - 206,843 -
Supplies - 2,308 -
Services and other charges - 1,805,445 1,763
Total economic development - 2,014,596 1,763
Capital outlay:
Public safety - - -
Debt service:
Principal- - 386,790
Total expenditures- 2,014,596 388,553
Revenues over (under) expenditures301,396 (449,481) (70,223)
OTHER FINANCING SOURCES (USES)
Transfers in- 299,771 -
Transfers out(299,771) - -
Total other financing sources (uses)(299,771) 299,771 -
Net increase (decrease) in fund balances 1,625 (149,710) (70,223)
Fund balances - January 1 1,839 1,383,389 240,935
Fund balances - December 313,464$ 1,233,679$ 170,712$
92
Statement 16
Total
PoliceCommunity City Early Retiree Nonmajor
Drug Development Initiatives Reinsurance Special
Forfeiture Block Grant Grant Program Revenue
-$ -$ -$ -$ 301,396$
- - - - 318,168
- 614,177 401,624 15,118 2,585,900
- - 9,615 - 9,615
-
130 - 755 472 5,339
17,557 - 149,458 - 173,329
17,687 614,177 561,452 15,590 3,393,747
- - - 11,749 11,749
- - 220,416 36,532 256,948
4,657 - 24,142 - 28,799
1,749 - 22,981 - 24,730
6,406 - 267,539 36,532 310,477
- - - 13,511 13,511
- - 11,277 11,161 22,438
- - 65,899 - 65,899
- - 13,062 - 13,062
- - 90,238 11,161 101,399
- - - 3,525 210,368
- - - - 2,308
- 494,465 - - 2,301,673
- 494,465 - 3,525 2,514,349
- - 68,161 - 68,161
- - - - 386,790
6,406 494,465 425,938 76,478 3,406,436
11,281 119,712 135,514 (60,888) (12,689)
- - 52,614 - 352,385
- (119,712) - - (419,483)
- (119,712) 52,614 - (67,098)
11,281 - 188,128 (60,888) (79,787)
35,255 - 168,059 138,427 1,967,904
46,536$ -$ 356,187$ 77,539$ 1,888,117$
93
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET Statement 17
NONMAJOR DEBT SERVICE FUND
December 31, 2012
General
Obligation
Bonds
ASSETS
Cash and investments 1,170,284$
Receivables:
Current taxes 7,244
Delinquent taxes 19,001
Total assets 1,196,529
LIABILITIES AND FUND BALANCE
Liabilities:
Deferred revenue 19,001
Fund balance:
Restricted 1,177,528
Total liabilities and fund balance 1,196,529$
94
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND Statement 18
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUND
For the Year Ended December 31, 2012
Total
General Tax Nonmajor
ObligationIncrement Debt
BondsBondsService
REVENUES
Property taxes704,454$ -$ 704,454$
Investment earnings (net of market value adjustment)2,058 - 2,058
Total revenues706,512 - 706,512
EXPENDITURES
Debt service:
Principal685,000 925,000 1,610,000
Interest34,581 651,744 686,325
Fiscal agent fees808 1,606 2,414
Total expenditures720,389 1,578,350 2,298,739
Revenues over (under) expenditures(13,877) (1,578,350) (1,592,227)
OTHER FINANCING SOURCES (USES)
Transfers in- 1,578,350 1,578,350
Net increase (decrease) in fund balances (13,877) - (13,877)
Fund balances - January 11,191,405 - 1,191,405
Fund balances - December 311,177,528$ -$ 1,177,528$
95
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
Capital
ReserveCapital
Emergency Improvements
ASSETS
Cash and investments 1,458,624$ 104,517$
Receivables:
Accounts - -
Due from other governments - -
Advances to other funds- 792,488
Total assets1,458,624 897,005
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable- 3,196
Due to other governments- -
Contracts payable- 1,023
Interfund payable- -
Total liabilities- 4,219
Fund balances:
Restricted - -
Committed 1,458,624 892,786
Total fund balances1,458,624 892,786
Total liabilities and fund balances1,458,624$ 897,005$
96
Statement 19
Municipal Total
State Aid Nonmajor
for Street Capital
Construction Reconstruction Technology Projects
-$ 875,451$ 27,798$ 2,466,390$
- 161,737 - 161,737
2,371,594 - - 2,371,594
- - - 792,488
2,371,594 1,037,188 27,798 5,792,209
- - - 3,196
563 - - 563
- - - 1,023
30,839 - - 30,839
31,402 - - 35,621
2,340,192 - - 2,340,192
- 1,037,188 27,798 3,416,396
2,340,192 1,037,188 27,798 5,756,588
2,371,594$ 1,037,188$ 27,798$ 5,792,209$
97
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, 2012
Capital
ReserveCapital
Emergency Improvements
REVENUES
Franchise fees -$ -$
Intergovernmental - -
Investment earnings (net of market value adjustment)4,283 213
Miscellaneous - 36,832
Total revenues4,283 37,045
EXPENDITURES
Current:
General government:
Supplies - -
Public works:
Supplies - -
Services and other charges- -
Total public works- -
Parks and recreation:
Services and other charges- 56,317
Capital outlay
Public works - -
Parks and recreation- 237,031
Total capital outlay- 237,031
Total expenditures- 293,348
Revenues over (under) expenditures4,283 (256,303)
OTHER FINANCING SOURCES (USES)
Transfers in - 200,000
Net increase (decrease) in fund balances 4,283 (56,303)
Fund balances - January 1 1,454,341 949,089
Fund balances - December 31 1,458,624$ 892,786$
98
Statement 20
Municipal Total
State Aid Nonmajor
for Street Capital
Construction Reconstruction Technology Projects
-$ 647,346$ -$ 647,346$
96,932 - - 96,932
3 2,123 52 6,674
- 188,000 - 224,832
96,935 837,469 52 975,784
- - 140,362 140,362
42,461 - - 42,461
14,828 43,424 - 58,252
57,289 43,424 - 100,713
- - - 56,317
- 108,578 - 108,578
- - - 237,031
- 108,578 - 345,609
57,289 152,002 140,362 643,001
39,646 685,467 (140,310) 332,783
- - 70,000 270,000
39,646 685,467 (70,310) 602,783
2,300,546 351,721 98,108 5,153,805
2,340,192$ 1,037,188$ 27,798$ 5,756,588$
99
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS Statement 21
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Special assessments866,685$ 866,685$ 561,618$
Investment earnings (net of market value adjustment)5,100 5,100 5,899
Miscellaneous- - 12
Total revenues871,785 871,785 567,529
EXPENDITURES
Debt service:
Principal670,000 670,000 670,000
Interest111,520 111,520 111,460
Fiscal agent fees7,500 7,500 5,263
Total expenditures789,020 789,020 786,723
Net increase (decrease) in fund balance 82,765$ 82,765$ (219,194)
Fund balance - January 1 2,577,901
Fund balance - December 31 2,358,707$
Budgeted Amounts
100
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION Statement 22
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Special assessments-$ -$ 641,605$
Intergovernmental 383,000 383,000 (42,093)
Miscellaneous75,000 75,000 31,589
Total revenues458,000 458,000 631,101
EXPENDITURES
Current:
Public works:
Services and other charges- - 14,862
Capital outlay:
Public works1,615,000 1,615,000 118,185
Total expenditures1,615,000 1,615,000 133,047
Revenues over (under) expenditures(1,157,000) (1,157,000) 498,054
OTHER FINANCING SOURCES (USES)
Transfers in1,157,000 1,157,000 436
Net increase (decrease) in fund balance -$ -$ 498,490
Fund balance - January 1 (2,504,286)
Fund balance - December 31 (2,005,796)$
Budgeted Amounts
101
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY Statement 23
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Taxes:
Property taxes302,288$ 302,288$ 301,346$
Market value homestead credit- - 50
Total revenues302,288 302,288 301,396
Revenues over (under) expenditures302,288 302,288 301,396
OTHER FINANCING SOURCES (USES)
Transfers out(302,288) (302,288) (299,771)
Net increase (decrease) in fund balance -$ -$ 1,625
Fund balance - January 1 1,839
Fund balance - December 31 3,464$
Budgeted Amounts
102
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY Statement 24
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Intergovernmental -$ -$ 1,554,981$
Investment earnings (net of market value adjustment)5,000 5,000 3,820
Miscellaneous- - 6,314
Total revenues5,000 5,000 1,565,115
EXPENDITURES
Current:
Economic development:
Personal services242,305 242,305 206,843
Supplies3,525 3,525 2,308
Services and other charges104,704 104,704 1,805,445
Total expenditures350,534 350,534 2,014,596
Revenues over (under) expenditures(345,534) (345,534) (449,481)
OTHER FINANCING SOURCES (USES)
Transfers in302,288 302,288 299,771
Net increase (decrease) in fund balance (43,246)$ (43,246)$ (149,710)
Fund balance - January 1 1,383,389
Fund balance - December 31 1,233,679$
Budgeted Amounts
103
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 4 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Tax increments353,263$ 353,263$ 318,168$
Investment earnings (net of market value adjustment)- - 162
Total revenues353,263 353,263 318,330
EXPENDITURES
Current:
Economic development:
Services and other charges12,000 12,000 1,763
Debt service:
Principal344,431 344,431 386,790
Total expenditures356,431 356,431 388,553
Net increase (decrease) in fund balance (3,168)$ (3,168)$ (70,223)
Fund balance - January 1 240,935
Fund balance - December 31 170,712$
104
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT Statement 26
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental 170,294$ 170,294$ 614,177$
EXPENDITURES
Current:
Economic development:
Services and other charges44,820 44,820 494,465
Revenues over (under) expenditures125,474 125,474 119,712
OTHER FINANCING SOURCES (USES)
Transfers out(125,474) (125,474) (119,712)
Net increase (decrease) in fund balance -$ -$ -
Fund balance - January 1 -
Fund balance - December 31 -$
105
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT Statement 27
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental 29,000$ 29,000$ 401,624$
Charges for services8,158 8,158 9,615
Investment earnings (net of market value adjustment)- - 755
Miscellaneous13,125 13,125 149,458
Total revenues50,283 50,283 561,452
EXPENDITURES
Current:
Public safety:
Personal services- - 220,416
Supplies- - 24,142
Services and other charges- - 22,981
Total public safety- - 267,539
Parks and recreation:
Personal services9,525 9,525 11,277
Supplies11,607 11,607 65,899
Services and other charges12,753 12,753 13,062
Total parks and recreation33,885 33,885 90,238
Capital outlay:
Public safety - - 68,161
Total expenditures33,885 33,885 425,938
Revenues over (under) expenditures16,398 16,398 135,514
OTHER FINANCING SOURCES (USES)
Transfers in- - 52,614
Net increase (decrease) in fund balance 16,398$ 16,398$ 188,128
Fund balance - January 1 168,059
Fund balance - December 31 356,187$
106
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - GENERAL OBLIGATION BONDS Statement 28
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Property taxes708,581$ 708,581$ 704,454$
Investment earnings (net of market value adjustment)2,000 2,000 2,058
Total revenues710,581 710,581 706,512
EXPENDITURES
Debt service:
Principal685,000 685,000 685,000
Interest34,581 34,581 34,581
Fiscal agent fees1,500 1,500 808
Total expenditures721,081 721,081 720,389
Net increase (decrease) in fund balance (10,500)$ (10,500)$ (13,877)
Fund balance - January 1 1,191,405
Fund balance - December 31 1,177,528$
Budgeted Amounts
107
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - TAX INCREMENT BONDS Statement 29
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
EXPENDITURES
Debt service:
Principal925,000$ 925,000$ 925,000$
Interest651,743 651,743 651,744
Fiscal agent fees3,000 3,000 1,606
Total expenditures1,579,743 1,579,743 1,578,350
Revenues over (under) expenditures(1,579,743) (1,579,743) (1,578,350)
OTHER FINANCING SOURCES (USES)
Transfers in1,579,743 1,579,743 1,578,350
Net increase (decrease) in fund balance -$ -$ -
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
108
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, 2012
Actual
OriginalFinalAmounts
REVENUES
Investment earnings (net of market value adjustment)-$ -$ 213$
Miscellaneous- - 36,832
Total revenues- - 37,045
EXPENDITURES
Current:
Parks and recreation:
Services and other charges315,000 315,000 56,317
Capital outlay:
Parks and recreation- - 237,031
Total expenditures315,000 315,000 293,348
Revenues over (under) expenditures(315,000) (315,000) (256,303)
OTHER FINANCING SOURCES (USES)
Transfers in200,000 200,000 200,000
Net increase (decrease) in fund balance (115,000)$ (115,000)$ (56,303)
Fund balance - January 1 949,089
Fund balance - December 31 892,786$
Budgeted Amounts
109
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, 2012
Actual
OriginalFinalAmounts
REVENUES
Intergovernmental 827,702$ 827,702$ 96,932$
Investment earnings (net of market value adjustment)- - 3
Total revenues827,702 827,702 96,935
EXPENDITURES
Current:
Public works:
Supplies42,800 42,800 42,461
Services and other charges47,200 47,200 14,828
Total expenditures90,000 90,000 57,289
Net increase (decrease) in fund balance 737,702$ 737,702$ 39,646
Fund balance - January 1 2,300,546
Fund balance - December 31 2,340,192$
Budgeted Amounts
110
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - STREET RECONSTRUCTION Statement 32
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Franchise fees680,000$ 680,000$ 647,346$
Investment earnings (net of market value adjustment)2,000 2,000 2,123
Miscellaneous- - 188,000
Total revenues682,000 682,000 837,469
EXPENDITURES
Current:
Public works:
Services and other charges- - 43,424
Capital outlay:
Public works- - 108,578
Total expenditures- - 152,002
Net increase (decrease) in fund balance 682,000$ 682,000$ 685,467
Fund balance - January 1 351,721
Fund balance - December 31 1,037,188$
Budgeted Amounts
111
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - TECHNOLOGY Statement 33
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2012
Actual
OriginalFinalAmounts
REVENUES
Investment earnings (net of market value adjustment)767$ 767$ 52$
EXPENDITURES
Current:
General government:
Supplies155,250 155,250 140,362
Revenues over (under) expenditures(154,483) (154,483) (140,310)
OTHER FINANCING SOURCES (USES)
Transfers in70,000 70,000 70,000
Net increase (decrease) in fund balance (84,483)$ (84,483)$ (70,310)
Fund balance - January 1 98,108
Fund balance - December 31 27,798$
Budgeted Amounts
112
NONMAJOR ENTERPRISE FUNDS
The City of Brooklyn Center had the following nonmajor Enterprise Funds during the year:
Recycling 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.
113
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET POSITION Statement 34
NONMAJOR ENTERPRISE FUNDS
December 31, 2012
Total
Street Light Nonmajor
Recycling Utility Enterprise
ASSETS
Current assets:
Cash and cash equivalents-$ 92,810$ 92,810$
Receivables:
Accounts - net 62,304 86,547 148,851
Total current assets62,304 179,357 241,661
Noncurrent assets:
Capital assets:
Street light systems - 425,860 425,860
Construction in progress- 57,956 57,956
Total capital assets- 483,816 483,816
Less: Allowance for depreciation - (67,952) (67,952)
Net capital assets - 415,864 415,864
Total assets 62,304 595,221 657,525
LIABILITIES
Current liabilities:
Accounts payable 518 2,609 3,127
Interfund payable 6,896 - 6,896
Total liabilities 7,414 2,609 10,023
NET POSITION
Net investment in capital assets - 415,864 415,864
Unrestricted 54,890 176,748 231,638
Total net position 54,890$ 592,612$ 647,502$
114
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,Statement 35
AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2012
Total
Street Light Nonmajor
Recycling Utility Enterprise
OPERATING REVENUES
Sales and user fees290,737$ 354,708$ 645,445$
OPERATING EXPENSES
Supplies25 25 50
Other services285,322 23,168 308,490
Insurance506 2,068 2,574
Utilities- 169,126 169,126
Depreciation- 28,448 28,448
Total operating expenses285,853 222,835 508,688
Operating income (loss)4,884 131,873 136,757
NONOPERATING REVENUES (EXPENSES)
Investment earnings (net of market value adjustment)15 269 284
Other revenue- 113 113
Total nonoperating revenues (expenses)15 382 397
Income (loss) before transfers4,899 132,255 137,154
Transfers out- (436) (436)
Change in net position 4,899 131,819 136,718
Net position - January 1 49,991 460,793 510,784
Net position - December 31 54,890$ 592,612$ 647,502$
115
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 36
NONMAJOR ENTERPRISE FUNDS
For the Year Ended December 31, 2012
Total
Street Light Nonmajor
Recycling Utility Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers286,445$ 337,838$ 624,283$
Payments to suppliers(285,594) (197,826) (483,420)
Miscellaneous revenue- 113 113
Net cash flows provided (used) by operating activities 851 140,125 140,976
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers out - (436) (436)
Interfund payable (866) - (866)
Net cash flows provided (used) by
noncapital financing activities(866) (436) (1,302)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets- (57,956) (57,956)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments15 269 284
Net increase (decrease) in cash and cash equivalents - 82,002 82,002
Cash and cash equivalents - January 1 - 10,808 10,808
Cash and cash equivalents - December 31 -$ 92,810$ 92,810$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) 4,884$ 131,873$ 136,757$
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation - 28,448 28,448
Changes in assets and liabilities:
(Increase) decrease in receivables (4,292) (16,870) (21,162)
Increase (decrease) in payables 259 (3,439) (3,180)
Other nonoperating income - 113 113
Total adjustments (4,033) 8,252 4,219
Net cash flows provided (used) by operating activities 851$ 140,125$ 140,976$
116
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.
117
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET POSITION Statement 37
INTERNAL SERVICE FUNDS
December 31, 2012
Total
CentralEE Retirement EE CompInternal
GarageBenefit AbsencesService
ASSETS
Current assets:
Cash and cash equivalents2,382,690$ 1,016,614$ 1,264,220$ 4,663,524$
Receivables:
Accounts - net 31,488 - - 31,488
Interfund receivable1,962,739 - - 1,962,739
Inventories26,307 - - 26,307
Total current assets4,403,224 1,016,614 1,264,220 6,684,058
Noncurrent assets:
Capital assets:
Land improvements 166,108 - - 166,108
Machinery and equipment 8,181,137 - - 8,181,137
Total capital assets8,347,245 - - 8,347,245
Less: Allowance for depreciation (4,631,172) - - (4,631,172)
Net capital assets 3,716,073 - - 3,716,073
Total assets 8,119,297 1,016,614 1,264,220 10,400,131
LIABILITIES
Current liabilities:
Accounts payable 7,696 885 - 8,581
Accrued salaries payable 14,763 - - 14,763
Due to other governments 65 - - 65
Compensated absences payable-current - - 126,422 126,422
Total current liabilities22,524 885 126,422 149,831
Noncurrent liabilities:
Compensated absences payable-long-term - - 1,137,798 1,137,798
Net OPEB obligation - 487,353 - 487,353
Total noncurrent liabilities - 487,353 1,137,798 1,625,151
Total liabilities 22,524 488,238 1,264,220 1,774,982
NET POSITION
Net investment in capital assets 3,716,073 - - 3,716,073
Unrestricted4,380,700 528,376 - 4,909,076
Total net position8,096,773$ 528,376$ -$ 8,625,149$
118
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,Statement 38
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
Total
CentralEE Retirement EE CompInternal
GarageBenefit AbsencesService
OPERATING REVENUES
Sales and user fees1,710,143$ 42,854$ 133,120$ 1,886,117$
OPERATING EXPENSES
Personal services350,497 235,919 136,490 722,906
Supplies573,529 - - 573,529
Other services123,658 - - 123,658
Insurance40,950 - - 40,950
Utilities1,015 - - 1,015
Depreciation652,297 - - 652,297
Total operating expenses1,741,946 235,919 136,490 2,114,355
Operating income (loss)(31,803) (193,065) (3,370) (228,238)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - 12,956 - 12,956
Investment earnings (net of market value adjustment)12,794 3,074 3,370 19,238
Gain (loss) on sale of capital assets 95,496 - - 95,496
Other revenue 13,842 - - 13,842
Total nonoperating revenues (expenses)122,132 16,030 3,370 141,532
Change in net position 90,329 (177,035) - (86,706)
Net position - January 1 8,006,444 705,411 - 8,711,855
Net position - December 31 8,096,773$ 528,376$ -$ 8,625,149$
119
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 39
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2012
Total
CentralEE Retirement EE CompInternal
GarageBenefit AbsencesService
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided1,706,503$ 42,854$ 133,120$ 1,882,477$
Payments to suppliers(839,416) 885 - (838,531)
Payments to employees (349,219) (156,106) (47,678) (553,003)
Miscellaneous revenue 13,842 12,956 - 26,798
Net cash flows provided (used) by
operating activities531,710 (99,411) 85,442 517,741
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receivable2,047,549 - - 2,047,549
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets(603,569) - - (603,569)
Proceeds from sale of capital assets132,200 - - 132,200
Net cash flows provided (used) by capital
and related financing activities(471,369) - - (471,369)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments12,794 3,074 3,370 19,238
Net increase (decrease) in cash and cash equivalents2,120,684 (96,337) 88,812 2,113,159
Cash and cash equivalents - January 1262,006 1,112,951 1,175,408 2,550,365
Cash and cash equivalents - December 312,382,690$ 1,016,614$ 1,264,220$ 4,663,524$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) (31,803)$ (193,065)$ (3,370)$ (228,238)$
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation652,297 - - 652,297
Changes in assets and liabilities:
(Increase) decrease in receivables(3,640) 3,270 - (370)
(Increase) decrease in inventories(590) - - (590)
Increase (decrease) in payables(99,674) 885 - (98,789)
Increase (decrease) in accrued expenses1,278 76,543 88,812 166,633
Other nonoperating income13,842 12,956 - 26,798
Total adjustments563,513 93,654 88,812 745,979
Net cash provided (used) by operating activities 531,710$ (99,411)$ 85,442$ 517,741$
Noncash financing activities:
Gain on sale of assets 95,496$ -$ -$
120
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 122
These tables contain trend information to help the reader understand the
City’s financial performance by placing it in historical perspective.
Revenue Capacity 136
These tables contain information to help the reader assess the City’s most
significant “own-source” revenue, property taxes.
Debt Capacity 142
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 148
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 150
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.
121
CITY OF BROOKLYN CENTER, MINNESOTA
NET POSITION BY COMPONENT
Last ten fiscal years
(accrual basis of accounting)
(Unaudited)
2003200420052006
Governmental activities
Net investment in capital assets 14,733,123$ 12,648,271$ 25,614,602$ 25,675,447$
Restricted 14,853,260 39,412,423 29,326,928 27,637,465
Unrestricted 17,817,934 3,226,051 652,963 4,055,312
Total governmental activities net position 47,404,317$ 55,286,745$ 55,594,493$ 57,368,224$
Business-type activities
Net investment in capital assets 37,898,615$ 36,129,095$ 38,417,467$ 40,647,644$
Unrestricted 6,464,332 7,137,218 7,087,856 7,973,318
Total business-type activities net position 44,362,947$ 43,266,313$ 45,505,323$ 48,620,962$
Primary government
Net investment in capital assets 52,631,738$ 48,777,366$ 64,032,069$ 65,188,021$
Restricted 14,853,260 39,412,423 29,326,928 27,637,465
Unrestricted 24,282,266 10,363,269 7,740,819 13,163,700
Total primary government net position 91,767,264$ 98,553,058$ 101,099,816$ 105,989,186$
In 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. As part of this
implementation, balances that were reported as Governmental activities in 2003-2010 are reported as Business-type activities in
2011 and 2012. The 2003-2010 balances have not been restated for this change.
122
Table 1
200720082009201020112012
31,183,887$ 31,423,905$ 33,550,664$ 40,978,165$ 45,761,042$ 45,261,629$
28,487,144 31,850,784 29,027,991 22,067,726 24,847,507 24,259,292
4,579,910 690,424 4,082,990 6,985,972 4,376,334 5,875,289
64,250,941$ 63,965,113$ 66,661,645$ 70,031,863$ 74,984,883$ 75,396,210$
40,466,892$ 42,572,360$ 42,297,110$ 42,800,624$ 45,051,128$ 42,406,210$
9,845,252 10,466,919 8,835,644 8,673,168 8,300,659 11,856,924
50,312,144$ 53,039,279$ 51,132,754$ 51,473,792$ 53,351,787$ 54,263,134$
70,722,191$ 72,993,581$ 75,003,481$ 83,104,172$ 90,282,443$ 87,264,939$
28,487,144 31,850,784 29,027,991 22,067,726 20,501,976 24,259,292
15,353,750 12,160,027 13,762,927 16,333,757 17,552,251 18,135,113
114,563,085$ 117,004,392$ 117,794,399$ 121,505,655$ 128,336,670$ 129,659,344$
123
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET POSITION - GOVERNMENTAL ACTIVITIES
Last ten fiscal years
(accrual basis of accounting)
(Unaudited)
2003200420052006
Expenses
General government 2,649,846$ 2,801,422$ 2,970,364$ 2,936,638$
Public safety 7,182,321 7,538,277 7,848,160 8,039,356
Public works2,654,601 1,956,119 3,821,647 2,057,018
Community services 225,365 67,324 86,043 123,172
Parks and recreation2,169,482 2,255,231 2,305,047 2,565,364
Economic development 1,759,585 1,683,025 3,559,027 2,567,377
Interest on long-term debt 922,253 1,268,649 1,349,852 1,184,017
Total expenses 17,563,453 17,570,047 21,940,140 19,472,942
Program Revenues
Charges for services:
General government 227,350 927,199 960,125 947,613
Public safety 951,518 687,731 1,026,736 800,408
Parks and recreation624,294 618,199 681,851 665,332
Other activities24,554 23,533 9,234 423,804
Operating grants and contributions1,627,020 933,104 855,633 748,888
Capital grants and contributions1,079,134 2,423,411 2,398,345 2,208,751
Total program revenues 4,533,870 5,613,177 5,931,924 5,794,796
Net revenue/(expense)(13,029,583) (11,956,870) (16,008,216) (13,678,146)
General Revenues and Transfers
Taxes:
Property10,407,613 10,788,145 11,288,883 11,618,486
Tax increments3,527,881 4,285,166 3,980,518 2,682,874
Lodging taxes661,267 656,859 710,619 738,776
Unrestricted grants and contributions1,413,913 923,374 577,548 702,030
Investment earnings 426,329 491,524 1,272,409 1,928,462
Gain on disposal of capital asset13,976 29,202 31,880 23,963
Miscellaneous588,264 660,218 - -
Transfers100,000 2,004,810 (1,545,893) 186,675
Total general revenues and transfers 17,139,243 19,839,298 16,315,964 17,881,266
Change in Net Position 4,109,660$ 7,882,428$ 307,748$ 4,203,120$
124
Table 2
Page 1 of 3
200720082009201020112012
2,953,328$ 3,498,767$ 3,653,956$ 3,553,737$ 3,216,321$ 3,246,015$
8,051,836 8,760,880 9,036,176 9,125,547 9,268,897 9,604,521
2,704,435 2,596,754 2,687,980 2,747,641 2,771,602 3,561,914
74,389 72,893 71,519 82,645 100,849 141,505
2,624,897 2,910,825 2,773,528 2,732,401 2,895,769 2,796,561
3,966,908 3,713,340 2,151,916 6,504,034 2,542,520 5,438,372
1,127,276 1,125,712 1,143,546 974,950 865,799 768,241
21,503,069 22,679,171 21,518,621 25,720,955 21,661,757 25,557,129
902,734 1,115,038 1,102,360 1,081,556 1,078,109 1,082,741
847,307 780,080 1,234,678 1,501,513 1,547,446 1,402,204
692,781 754,079 740,782 725,891 721,663 897,592
290,533 151,924 26,472 49,161 104,928 290,414
818,989 1,003,884 1,034,905 2,013,099 1,637,743 3,165,588
2,646,320 2,706,056 1,566,224 6,627,777 5,299,705 491,404
6,198,664 6,511,061 5,705,421 11,998,997 10,389,594 7,329,943
(15,304,405) (16,168,110) (15,813,200) (13,721,958) (11,272,163) (18,227,186)
12,200,575 12,458,724 12,899,250 12,949,069 13,336,056 14,307,993
2,677,630 2,912,773 3,616,157 3,127,373 2,525,057 2,751,249
706,930 619,962 591,291 696,746 852,302 882,620
1,263,753 607,073 1,019,990 411,378 549,649 496,679
1,852,117 903,939 309,715 33,885 191,510 85,560
88,508 73,036 40,632 - 111,530 113,976
- - - - - -
(273,070) (1,693,225) 32,697 (126,275) (749,308) 436
18,516,443 15,882,282 18,509,732 17,092,176 16,816,796 18,638,513
3,212,038$ (285,828)$ 2,696,532$ 3,370,218$ 5,544,633$ 411,327$
125
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET POSITION - BUSINESS-TYPE ACTIVITIES
Last ten fiscal years
(accrual basis of accounting)
(Unaudited)
2003200420052006
Expenses
Municipal liquor724,897$ 939,244$ 978,743$ 970,260$
Golf course290,990 271,127 273,024 282,418
Earle Brown Heritage Center2,109,166 2,180,229 2,262,359 2,439,709
Water utility 1,645,955 222,821 1,717,175 1,635,847
Sanitary sewer 2,567,032 165,651 2,660,706 3,176,426
Storm drainage838,421 1,533,923 899,988 1,097,277
Recycling 223,679 2,310,645 254,661 245,853
Street light utility 147,293 756,593 213,094 161,219
Total expenses 8,547,433 8,380,233 9,259,750 10,009,009
Program Revenues
Charges for services:
Municipal liquor853,353 991,058 1,099,172 1,244,738
Earle Brown Heritage Center1,749,202 1,675,267 1,857,461 2,168,861
Water utility 1,530,592 1,583,450 1,825,521 1,906,375
Sanitary sewer 2,870,109 2,833,836 2,966,222 3,186,569
Storm drainage1,264,512 1,276,778 1,298,690 1,323,607
Other activities706,644 707,460 706,105 714,373
Capital grants and contributions- - - -
Total program revenues 8,974,412 9,067,849 9,753,171 10,544,523
Net revenue/(expense)426,979 687,616 493,421 535,514
General Revenues and Transfers
Investment earnings 82,165 102,696 199,876 337,231
Other 241,308 117,864 - -
Transfers(100,000) (2,004,810) 1,545,893 (186,675)
Total general revenues and transfers 223,473 (1,784,250) 1,745,769 150,556
Change in Net Position 650,452$ (1,096,634)$ 2,239,190$ 686,070$
126
Table 2
Page 2 of 3
200720082009201020112012
1,037,427$ 1,125,517$ 1,249,946$ 1,262,076$ 1,218,399$ 1,274,375$
313,794 304,832 323,340 317,539 284,673 273,023
2,431,719 2,403,676 2,363,085 2,345,920 2,602,074 2,768,719
1,716,497 1,783,275 3,448,819 1,792,628 1,825,558 1,855,345
2,930,016 3,018,418 3,736,989 3,282,472 3,277,874 3,317,427
1,123,636 1,162,957 1,282,505 1,348,974 1,407,712 1,501,652
257,300 265,983 276,058 278,381 284,440 285,853
191,659 182,402 220,020 213,752 232,716 222,835
10,002,048 10,247,060 12,900,762 10,841,742 11,133,446 11,499,229
1,362,093 1,492,644 1,530,175 1,538,403 1,620,315 1,656,125
2,168,033 1,959,628 1,725,858 1,879,902 2,026,063 2,293,386
2,063,930 2,003,633 2,019,325 1,959,684 1,990,664 2,321,539
3,274,678 3,264,649 3,315,726 3,321,373 3,474,588 3,592,530
1,412,548 1,553,236 1,577,879 1,575,679 1,621,104 1,660,849
732,224 763,858 770,472 760,757 778,584 853,585
- - - - 80,186 -
11,013,506 11,037,648 10,939,435 11,035,798 11,591,504 12,378,014
1,011,458 790,588 (1,961,327) 194,056 458,058 878,785
406,654 243,322 87,499 20,707 79,016 32,998
- - - - - -
273,070 1,693,225 (32,697) 126,275 749,308 (436)
679,724 1,936,547 54,802 146,982 828,324 32,562
1,691,182$ 2,727,135$ (1,906,525)$ 341,038$ 1,286,382$ 911,347$
127
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN NET POSITION - TOTAL
Last ten fiscal years
(accrual basis of accounting)
(Unaudited)
2003200420052006
Expenses
Governmental activities17,563,453$ 17,570,047$ 21,940,140$ 19,472,942$
Business-type activities 8,547,433 8,380,233 9,259,750 10,009,009
Total expenses 26,110,886 25,950,280 31,199,890 29,481,951
Program Revenues
Governmental activities4,533,870 5,613,177 5,931,924 5,794,796
Business-type activities 8,974,412 9,067,849 9,753,171 10,544,523
Total program revenues 13,508,282 14,681,026 15,685,095 16,339,319
Net revenue/(expense)(12,602,604) (11,269,254) (15,514,795) (13,142,632)
General Revenues and Transfers
Governmental activities17,139,243 19,839,298 16,315,964 17,881,266
Business-type activities 223,473 (1,784,250) 1,745,769 150,556
Total general revenues and transfers 17,362,716 18,055,048 18,061,733 18,031,822
Change in Net Position 4,760,112$ 6,785,794$ 2,546,938$ 4,889,190$
In 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. As part of this
implementation, activity that was reported as Governmental activities in 2003-2010 is reported as Business-type activities in 2011
and 2012. The 2003-2010 activity has not been restated for this change.
128
Table 2
Page 3 of 3
200720082009201020112012
21,503,069$ 22,679,171$ 21,518,621$ 25,720,955$ 21,661,757$ 25,557,129$
10,002,048 10,247,060 12,900,762 10,841,742 11,133,446 11,499,229
31,505,117 32,926,231 34,419,383 36,562,697 32,795,203 37,056,358
6,198,664 6,511,061 5,705,421 11,998,997 10,389,594 7,329,943
11,013,506 11,037,648 10,939,435 11,035,798 11,591,504 12,378,014
17,212,170 17,548,709 16,644,856 23,034,795 21,981,098 19,707,957
(14,292,947) (15,377,522) (17,774,527) (13,527,902) (10,814,105) (17,348,401)
18,516,443 15,882,282 18,509,732 17,092,176 16,816,796 18,638,513
679,724 1,936,547 54,802 146,982 828,324 32,562
19,196,167 17,818,829 18,564,534 17,239,158 17,645,120 18,671,075
4,903,220$ 2,441,307$ 790,007$ 3,711,256$ 6,831,015$ 1,322,674$
129
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130
CITY OF BROOKLYN CENTER, MINNESOTA
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE Table 3
Last ten fiscal years
(accrual basis of accounting)
(Unaudited)
PropertyTaxLodging
TaxIncrementsTaxTotal
200310,407,613$ 3,527,881$ 661,267$ 14,596,761$
200410,788,145 4,285,166 656,859 15,730,170
200511,288,883 3,980,518 710,619 15,980,020
200611,618,486 2,682,874 738,776 15,040,136
200712,200,575 2,677,630 706,930 15,585,135
200812,458,724 2,912,773 619,962 15,991,459
200912,899,250 3,616,157 591,291 17,106,698
201012,949,069 3,127,373 696,746 16,773,188
201113,336,056 2,525,057 852,302 16,713,415
201214,307,993 2,751,249 882,620 17,941,862
131
CITY OF BROOKLYN CENTER, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
2003200420052006
General Fund
Reserved 110,383$ 106,578$ 11,080$ 500$
Unreserved7,906,697 6,862,871 7,283,871 7,508,690
Nonspendable - - - -
Assigned - - - -
Unassigned - - - -
Total general fund 8,017,080$ 6,969,449$ 7,294,951$ 7,509,190$
All other governmental funds
Reserved 7,509,315$ 13,230,540$ 5,150,818$ 5,176,808$
Unreserved, reported in:
Special revenue funds6,211,019 25,750,179 24,853,267 22,862,211
Capital project funds 2,133,079 4,969,506 3,232,820 4,164,400
Restricted - - - -
Committed - - - -
Unassigned - - - -
Total all other governmental funds 15,853,413$ 43,950,225$ 33,236,905$ 32,203,419$
In 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. As part of this
implementation, balances that were reported with other governmental funds in 2003-2010 are reported with proprietary funds in 2011 and
2012 (which are not included on this table). The 2003-2010 fund balances have not been restated for this change.
132
Table 4
200720082009201020112012
700$ 21,995$ 27,993$ 26,405$ -$ -$
7,941,714 7,721,443 8,502,012 8,803,942 - -
- - - - 32,308 88,952
- - - - 2,614 -
- - - - 9,695,913 10,597,944
7,942,414$ 7,743,438$ 8,530,005$ 8,830,347$ 9,730,835$ 10,686,896$
11,288,685$ 9,997,668$ 8,696,324$ 7,388,488$ -$ -$
11,738,460 10,523,743 9,399,556 7,095,645 - -
3,466,029 4,282,881 3,609,961 2,203,823 - -
- - - - 13,331,705 12,912,357
- - - - 3,021,318 3,651,995
- - - - (2,515,053) (3,425,001)
26,493,174$ 24,804,292$ 21,705,841$ 16,687,956$ 13,837,970$ 13,139,351$
133
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
2003200420052006
Revenues
Property taxes10,268,278$ 10,598,478$ 11,641,177$ 11,525,040$
Tax increments3,466,114 3,834,060 4,680,688 2,664,144
Franchise fees- 612,079 662,614 658,410
Lodging taxes661,267 656,858 710,619 738,776
Special assessments1,232,682 1,313,782 1,226,655 1,214,571
Licenses and permits827,685 678,077 675,530 722,633
Intergovernmental 3,479,082 3,239,020 2,578,031 2,375,697
Charges for services709,623 711,526 754,575 722,218
Fines and forfeits290,408 254,980 253,748 256,600
Investment earnings 317,749 385,022 1,078,434 1,601,731
Miscellaneous607,582 609,902 427,839 477,296
Total revenues21,860,470 22,893,784 24,689,910 22,957,116
Expenditures
General government 2,475,323 2,594,041 2,586,993 2,839,150
Public safety 6,620,481 7,025,629 7,014,528 7,299,842
Public works2,114,378 1,814,107 2,197,127 1,817,120
Community services 91,581 67,324 86,043 123,172
Parks and recreation2,030,402 1,981,998 2,121,130 2,212,142
Economic development 1,758,257 1,006,550 2,076,023 1,386,558
Nondepartmental 331,223 333,669 315,355 363,967
Administrative services reimbursement (607,221) (784,084) (754,085) (529,362)
Capital outlay 1,881,360 4,724,289 8,335,916 5,918,472
Debt service
Principal3,220,000 3,751,513 2,772,189 3,127,146
Interest905,518 881,016 1,214,751 1,197,392
Other charges26,079 126,858 23,758 53,226
Total expenditures20,847,381 23,522,910 27,989,728 25,808,825
Revenues over (under) expenditures1,013,089 (629,126) (3,299,818) (2,851,709)
Other financing sources (uses)
Issuance of debt1,205,000 25,770,000 - 1,460,000
Discount on issuance of debt (8,860) (96,503) - (445)
Premium on issuance of debt - - - -
Sale of capital assets73,175 - - -
Transfers in3,703,509 5,103,613 2,811,793 2,784,116
Transfers out(3,603,509) (3,098,803) (2,619,793) (2,211,209)
Refunded bonds redeemed- - (7,280,000) -
Insurance recoveries- - - -
Total other financing sources (uses)1,369,315 27,678,307 (7,088,000) 2,032,462
Net change in fund balances 2,382,404$ 27,049,181$ (10,387,818)$ (819,247)$
Debt service as a percentage of
noncapital expenditures 21.74%24.23%18.26%18.90%
In 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type Definitions. As part of this implementation,
activity that was reported with governmental funds in 2003-2010 is reported with proprietary funds in 2011 and 2012 (which are not included on
this table). The 2003-2010 activity has not been restated for this change.
134
Table 5
200720082009201020112012
12,094,359$ 12,403,914$ 12,897,002$ 13,012,317$ 13,396,611$ 14,389,842$
2,727,637 2,894,595 3,601,747 3,111,882 2,527,316 2,685,822
658,620 643,934 656,772 647,796 659,066 647,346
706,930 619,962 591,291 696,746 852,302 882,620
1,364,413 1,289,148 1,352,908 1,491,194 1,975,470 1,294,521
673,156 643,736 616,135 1,063,945 961,947 858,593
3,171,745 2,211,560 2,789,007 6,859,817 4,929,902 3,607,218
705,736 761,404 1,120,341 1,001,019 1,122,350 1,056,241
291,423 302,986 340,536 359,937 340,356 336,740
1,519,503 733,877 247,260 24,212 143,661 48,322
404,420 449,061 370,508 285,425 296,427 712,184
24,317,942 22,954,177 24,583,507 28,554,290 27,205,408 26,519,449
2,951,188 3,575,147 3,853,628 3,847,199 3,452,428 3,543,040
7,550,434 8,048,529 8,452,348 8,524,140 8,674,195 9,090,324
2,310,846 2,139,864 2,155,532 2,170,059 2,392,297 2,118,303
74,389 72,893 71,519 82,645 100,849 141,505
2,314,099 2,409,291 2,462,275 2,442,938 2,412,952 2,532,827
5,659,331 7,666,319 2,531,062 3,105,007 2,337,253 5,215,619
354,848 301,396 313,723 300,549 316,376 287,692
(744,590) (802,775) (859,456) (1,074,575) (883,279) (700,065)
4,524,524 4,531,003 2,820,761 8,549,489 5,558,718 699,563
2,786,076 2,884,953 4,445,471 4,676,066 2,965,613 2,666,790
1,134,412 1,060,165 1,183,560 1,026,800 895,053 797,785
12,896 73,631 15,170 14,104 14,581 7,677
28,928,453 31,960,416 27,445,593 33,664,421 28,237,036 26,401,060
(4,610,511) (9,006,239) (2,862,086) (5,110,131) (1,031,628) 118,389
- 6,725,000 - - - -
- (28,178) - - - -
- 1,384 - - - -
- - - - - 108,532
5,881,257 1,969,533 3,632,013 4,888,536 3,083,093 2,320,883
(6,018,629) (1,549,358) (3,081,811) (4,495,948) (3,409,350) (2,320,447)
(529,138) - - - - -
- - - - - 30,085
(666,510) 7,118,381 550,202 392,588 (326,257) 139,053
(5,277,021)$ (1,887,858)$ (2,311,884)$ (4,717,543)$ (1,357,885)$ 257,442$
15.85%14.38%22.86%22.71%17.02%13.48%
135
CITY OF BROOKLYN CENTER, MINNESOTA
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
(Unaudited)
2003200420052006
Real Property:
Residential9,362,788$ 10,532,558$ 12,177,307$ 13,942,981$
Nonresidential 9,430,533 9,775,352 9,903,157 9,475,576
Area-wide allocation 875,145 1,097,596 1,023,618 1,161,174
Personal property273,072 281,963 294,377 298,953
Less:
Tax increment districts2,538,825 3,134,417 3,122,665 2,559,620
Total Assessed Tax Capacity17,402,713 18,553,052 20,275,794 22,319,064
Direct Tax Rate52.792 53.693 51.723 48.069
Estimated Market Value1,673,812,000 1,840,115,300 1,959,999,100 2,035,666,100
Total Assessed Tax Capacity as a percentage
of Estimated Market Value1.04%1.01%1.03%1.10%
Source: City Assessing Department
136
Table 6
200720082009201020112012
15,436,568$ 16,033,784$ 14,690,823$ 12,848,922$ 11,313,064$ 9,196,300$
9,573,405 9,864,552 10,467,618 10,250,411 9,446,069 9,155,327
1,624,108 2,155,636 2,539,817 4,004,068 4,348,415 4,575,121
283,198 291,815 283,070 278,984 304,150 316,491
2,463,631 2,405,929 2,739,457 2,998,145 2,093,764 2,619,012
24,453,648 25,939,858 25,241,871 24,384,240 23,317,934 20,624,227
45.366 45.081 49.138 52.412 58.558 64.359
2,140,133,600 2,197,067,700 2,094,106,200 1,897,043,600 1,682,317,900 1,649,467,100
1.14%1.18%1.21%1.29%1.39%1.25%
137
CITY OF BROOKLYN CENTER, MINNESOTA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
(Unaudited)
Overlapping Rates
City 1 CountyDistrict 11District 279District 281District 286
Metro
Districts
200354.021 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
2010 52.412 42.640 19.939 22.381 28.621 51.173 2.620
2011 58.558 45.840 23.999 24.217 34.387 47.697 2.949
2012 64.359 48.231 23.325 24.930 32.810 48.020 3.084
Source: City Assessing Department and Hennepin County Property Tax Services
1 The City's direct rate is an operating rate only and is based on tax capacity. The property taxes collected in the Housing and Redevelopment
Authority Special Revenue fund and the General Obligation Bonds Debt Service fund are based on taxable market value.
2 Watershed levy is applicable to all of school districts 279 and 281, and parts of school districts 11 and 286.
138
Table 7
Total Direct and Overlapping Rates
Other
DistrictsWatershed 2
District 11
no
watershed
District 11
with
watershed
District
279
District
281
District 286
no
watershed
District 286
with
watershed
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 0.073 116.129 116.202 117.971 124.645 135.864 135.937
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
5.518 0.081 123.129 123.210 125.652 131.892 154.363 154.444
6.223 0.568 137.569 138.137 138.355 148.525 161.267 161.835
6.439 0.001 145.438 145.439 147.044 154.924 170.133 170.134
139
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 8
Current Year and Nine Years Ago
(Unaudited)
2012 2003
Percentage of Percentage of
Net Tax Total Tax Net Tax Total Tax
TaxpayerCapacity Rank Capacity ValueCapacity Rank Capacity Value
Luther Properties408,521 11.98%-$ -
Twin Lakes LLC 376,700 21.83%- -
Lang Nelson 283,913 31.38%227,664 41.31%
Regal Cinemas, Inc.239,758 41.16%222,250 61.28%
BCC Associates LLC219,250 51.06%339,270 31.95%
CSM Corporation191,470 60.93%- -
Brookdale Corner LLC188,250 70.91%225,650 51.30%
Medtronic, Inc.182,250 80.88%- -
Target179,650 90.87%411,666 22.37%
Shingle Creek, LLC156,650 100.76%599,712 13.45%
Hennepin County Hotel Ass'n - -198,250 71.14%
DJS Holdings- -178,450 81.03%
Sears Roebuck and Co.- -160,000 90.92%
Wickes Furniture Company - -145,150 100.83%
Totals2,426,412$ 11.76%2,708,062$ 15.58%
Source: City Assessing Department
140
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142
CITY OF BROOKLYN CENTER, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 11
Last ten fiscal years
(Unaudited)
Less: Amounts Percentage of
GeneralAvailable in Net General Estimated
Obligation Debt Service Obligation Market Value Per
Bonds Fund Debt of Property Capita
2003 5,875,000$ 907,709$ 4,967,291$ 0.30%170$
2004 10,450,000 5,903,577 4,546,423 0.25%157
2005 5,045,000 1,054,230 3,990,770 0.20%142
2006 4,465,000 1,104,749 3,360,251 0.17%120
2007 3,875,000 1,163,306 2,711,694 0.13%97
2008 3,275,000 1,198,234 2,076,766 0.09%68
2009 2,665,000 1,204,714 1,460,286 0.07%49
2010 2,025,000 1,196,115 828,885 0.04%28
2011 1,385,000 1,191,405 193,595 0.01%6
2012 700,000 1,177,528 - 0.00%-
143
CITY OF BROOKLYN CENTER, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING Table 12
GOVERNMENTAL ACTIVITIES DEBT
as of December 31, 2012
(Unaudited)
EstimatedEstimated Share
DebtPercentageof Overlapping
Governmental UnitOutstandingApplicable 1 Debt
Overlapping debt:
School Districts:
No. 11 Anoka102,510,573$ 1.03%1,055,859$
No. 279 Osseo109,005,000 3.26%3,553,563
No. 281 Robbinsdale168,430,000 4.22%7,107,746
No. 286 Brooklyn Center5,510,000 100.00%5,510,000
Metropolitan Council257,390,000 48.00%123,547,200
Hennepin County676,885,000 1.05%7,107,293
Hennepin Regional RR Authority39,110,000 1.05%410,655
Hennepin County Park Reserve District90,255,000 1.43%1,290,647
Total overlapping debt1,237,580,000$ 149,582,962
City of Brooklyn Center direct debt 16,085,000
Total direct and overlapping debt 165,667,962$
Source: City Finance Department, Hennepin County, and Anoka County.
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.
144
CITY OF BROOKLYN CENTER, MINNESOTA
LEGAL DEBT INFORMATION Table 13
Last ten fiscal years
(Unaudited)
Total net debt
applicable to the limit
Total net debtas a percentage of
Debt Limit applicable to limitLegal debt margin debt limit
2003 29,594,688$ 4,967,291$ 24,627,397$ 16.78%
2004 32,503,096 4,546,423 27,956,673 13.99%
2005 36,003,536 3,990,770 32,012,766 11.08%
2006 39,219,054 3,360,251 35,858,803 8.57%
2007 42,259,958 2,711,694 39,548,264 6.42%
2008 65,676,378 2,076,766 63,599,612 3.16%
2009 62,625,534 1,460,286 61,165,248 2.33%
2010 56,747,742 828,885 55,918,857 1.46%
2011 50,777,838 193,595 50,584,243 0.38%
2012 44,044,797 - 44,044,797 0.00%
Legal Debt Margin Calculation for Fiscal Year 2012
Taxable Market Value 1,468,159,885$
Debt limit (3% of Taxable Market Value)44,044,797
Debt applicable to limit
Net general obligation bonds -
Legal debt margin 44,044,797$
145
CITY OF BROOKLYN CENTER, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
(Unaudited)
Special Assessment Bonds
Special
Assessment Debt Service
CollectionsPrincipalInterestCoverage
20031,153,044$ 870,000$ 242,749$ 1.04
20041,410,344 1,005,000 218,457 1.15
20051,058,557 990,000 197,760 0.89
20061,035,961 1,000,000 167,284 0.89
2007884,261 900,000 162,486 0.83
2008816,798 980,000 145,121 0.73
20091,173,435 765,000 166,946 1.26
2010750,168 920,000 167,686 0.69
2011747,145 745,000 136,890 0.85
2012561,618 670,000 111,460 0.72
Tax Increment Bonds
Tax
Increment Debt Service
CollectionsPrincipalInterestCoverage
20033,142,158$ 1,645,000$ 340,413$ 1.58
20043,606,130 1,775,000 286,867 1.75
20053,576,209 770,000 729,740 2.38
20061,609,994 1,000,000 887,080 0.85
20071,707,470 1,050,000 847,236 0.90
20081,906,053 1,030,000 804,491 1.04
20092,356,641 2,765,000 922,711 0.64
20101,794,442 2,785,000 783,961 0.50
20111,321,205 1,290,000 702,530 0.66
20122,388,702 925,000 651,744 1.51
146
Table 14
Storm Drainage Bonds
Storm
Drainage Less:Net
Utility Operating Available Debt Service
Charges Expenses Revenue Principal Interest Coverage
1,264,512$ 809,130$ 455,382$ 210,000$ 29,540$ 1.90
1,276,778 756,593 520,185 220,000 18,250 2.18
1,293,841 1,086,600 207,241 230,000 6,210 0.88
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
Utility Revenue Bonds
Water and
Sanitary Sewer Less:Net
Utility Operating Available Debt Service
Charges Expenses Revenue Principal Interest Coverage
-$ -$ -$ -$ -$ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
5,249,263 4,934,032 315,231 - 68,081 4.63
5,421,679 5,011,775 409,904 140,000 83,438 1.83
5,889,769 5,084,012 805,757 135,000 81,562 3.72
147
CITY OF BROOKLYN CENTER, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15
Last ten fiscal years
(Unaudited)
School Enrollments
Per Capita No. 286
PersonalPersonalUnemployment No. 11 No. 279 No. 281Brooklyn
PopulationIncomeIncomeRateAnoka OsseoRobbinsdaleCenter
200329,174 1,340,661,996$ 45,954$ 5.9%41,254 21,698 13,765 1,732
200429,005 1,414,892,905 48,781 5.6%41,592 21,620 16,196 1,691
200528,137 1,420,046,253 50,469 4.8%41,596 21,792 13,368 1,679
200627,901 1,503,082,672 53,872 4.6%41,310 22,071 13,194 1,705
200727,907 1,562,959,442 56,006 5.6%40,656 21,859 12,891 1,763
200830,330 1,749,828,690 57,693 7.6%40,152 21,001 12,526 2,012
200929,810 1,568,125,240 52,604 8.7%39,822 20,903 11,947 2,250
201030,104 1,659,392,688 55,122 8.1%39,106 20,835 12,036 2,311
201130,204 1,736,005,104 57,476 7.1%38,686 20,686 12,062 2,109
201230,204 ****6.8%38,403 20,623 12,181 2,177
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 this year
148
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL EMPLOYERS Table 16
Current Year and Nine Years Ago
(Unaudited)
2012 2003
Percentage of Percentage of
Total City Total City
Employer EmployeesRankEmploymentEmployeesRankEmployment
Promeon, Division of Medtronics 1,100 17.23%300 32.03%
Luther Auto Group 400 22.63%
Independent School District #286 385 32.53%
Wal-Mart 300 41.97%
Caribou Coffee 250 51.64%
FBI (Field Office)250 51.64%
Independent School District #279 185 71.22%
City of Brooklyn Center 160 81.05%157 61.06%
TCF Call Center 150 90.99%
Target 150 90.99%200 41.35%
Brookdale Center 1,700 111.49%
Graco, Inc.832 25.62%
Cub Foods 180 51.22%
Ault, Inc.150 71.01%
TCR Engineered Components 135 80.91%
Cass Screw Machine Products 123 90.83%
Best Buy 110 100.74%
Totals 3,330 21.89%3,887 26.27%
Source: 2003 from Official Statement from 2004A GO Police & Fire Building Refunding Bonds (issued 01/01/2004)
Source: 2012 from phone survey conducted by Business and Development department
149
CITY OF BROOKLYN CENTER, MINNESOTA
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Table 17
Last ten fiscal years
(Unaudited)
2003200420052006200720082009201020112012
General government
Administrative 6.5 6.0 6.0 6.0 6.0 7.0 7.0 7.0 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 6.0 6.0 6.0 6.0 6.0 5.0 5.0 5.0 5.0 5.0
Assessor 3.0 3.0 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 4.0
Information technology 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Total general government 23.5 23.0 23.023.023.023.023.023.0 23.022.0
Public safety
Police
Officers42.0 42.0 42.042.043.046.046.047.0 48.048.0
Civilians15.0 15.0 15.015.012.012.012.012.0 12.012.0
Fire1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Building inspection 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Code enforcement - - - - - 2.0 5.0 5.0 5.0 4.0
Total public safety 62.0 62.0 62.063.061.066.069.070.0 71.070.0
Public works
Engineering 8.0 7.0 7.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0
Streets 11.0 10.0 9.0 10.010.011.010.010.0 10.09.0
Total public works 19.0 17.0 16.016.016.016.016.016.0 16.015.0
Parks and recreation
Administration 5.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
Community center 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 1.0
Park maintenance 10.0 8.0 8.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
Total park and recreation20.0 17.0 17.016.016.016.016.016.0 16.014.0
Economic development 4.5 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
Municipal liquor 3.0 3.0 3.0 3.0 4.0 4.0 4.0 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 Center11.0 11.0 11.011.011.011.011.011.0 11.011.0
Water 5.0 5.0 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3
Sanitary sewer 2.0 2.0 2.0 2.3 2.3 2.3 2.3 2.3 2.3 2.3
Storm sewer - - 1.0 1.4 1.4 1.4 1.4 1.4 1.4 2.4
Central garage 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Total 156.0150.0150.0151.0150.0155.0158.0159.0160.0156.0
Source: City Annual Budget documents
150
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.
2
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74
.
2
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7
4
.
2
0
7
4
.
2
0
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e
:
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c
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s
152