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HomeMy WebLinkAboutCAFR-2013 2013 City of Brooklyn Center Minnesota Comprehensive Annual Financial Report for the year ended December 31, 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF BROOKLYN CENTER, MINNESOTA Cornelius L. Boganey City Manager Prepared By: FINANCE DIVISION DEPARTMENT OF FISCAL & SUPPORT SERVICES Nathan Reinhardt Finance Director Adam Flaherty Assistant Finance Director FOR THE YEAR ENDED DECEMBER 31, 2013 (Member of Government Finance Officers Association of the United States and Canada) CITY OF BROOKLYN CENTER, MINNESOTA TABLE OF CONTENTS Page No. INTRODUCTORY SECTION Letter of Transmittal1 Principal Officials8 Organizational Chart9 Certificate of Achievement10 FINANCIAL SECTION Independent Auditor's Report11 Management's Discussion and Analysis15 Basic Financial Statements Government-wide Financial Statements Statement of Net Position27 Statement of Activities28 Fund Financial Statements Governmental Funds Balance Sheet30 Reconciliation of the Balance Sheet of the Governmental Funds to the Statement of Net Position31 Statement of Revenues, Expenditures and Changes in Fund Balances32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities33 Statement of Revenues, Expenditures and Changes in Fund Balances: Budget-to-Actual General Fund34 Tax Increment District No. 3 Special Revenue Fund35 Proprietary Funds Statement of Net Position36 Statement of Revenues, Expenses and Changes in Net Position38 Statement of Cash Flows40 Notes to the Financial Statements43 Required Supplementary Information Schedule of Funding Progress - Other Postemployment Benefits73 Combining and Individual Fund Statements and Schedules Governmental Funds Nonmajor Governmental Funds Combining Balance Sheet78 Combining Statement of Revenues, Expenditures and Changes in Fund Balances79 Nonmajor Special Revenue Funds Combining Balance Sheet80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances82 Nonmajor Debt Service Funds Combining Balance Sheet84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances86 Nonmajor Capital Projects Funds Combining Balance Sheet88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances89 CITY OF BROOKLYN CENTER, MINNESOTA TABLE OF CONTENTS Schedule of Revenues, Expenditures and Changes in Fund Balances: Budget-to-Actual General Fund90 Nonmajor Special Funds Housing and Redevelopment Authority95 Economic Development Authority96 Community Development Block Grant97 Tax Increment District No. 398 Tax Increment District No. 499 City Initiatives Grant100 Nonmajor Debt Service Funds G.O. Improvement Bonds, 2003A101 G.O. Improvement Bonds, 2004C102 G.O. Refunding Bonds, 2004A103 G.O. Improvement Bonds, 2006A104 G.O. Improvement Bonds, 2008B105 G.O. Tax Increment Bonds, 2008A106 G.O. Tax Increment Bonds, 2004D107 Nonmajor Capital Projects Funds Capital Improvements109 Municipal State-Aid for Construction109 Infrastructure Construction110 Street Reconstruction111 Technology112 Proprietary Funds Internal Service Funds Combining Statement of Net Position114 Combining Statement of Revenues, Expenses and Changes in Net Position115 Combining Statement of Cash Flows116 STATISTICAL SECTION (UNAUDITED) Financial Trends Net Position by Component118 Changes in Net Position120 Governmental Activities Tax Revenue by Source126 Fund Balances of Governmental Funds128 Changes in Fund Balances of Governmental Funds130 Revenue Capacity Assessed Tax Capacity and Estimated Actual Values of Taxable Property132 Property Tax Rates - Direct and Overlapping Governments134 Principal Property Taxpayers136 Property Tax Levies and Collections137 Debt Capacity Ratios of Outstanding Debt by Type138 Ratios of General Bonded Debt Outstanding139 Computation of Direct and Overlapping Debt140 Legal Debt Margin Information142 Pledged Revenue Coverage144 Demographic and Economic Information Demographic and Economic Statistics145 Principal Employers146 Operating Information Full-Time City Government Positions by Function147 Operating Indicators by Function148 Capital Asset Statistics by Function149 L“·©š7Ò-·š©ä {;-·zš“ City of Brooklyn Center A Millennium Community May 8, 2014 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, 2013. 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 2013 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. 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 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. 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. For the last several years the City Council has remained focused on the achievement of strategic goals. City financial planning, policies, spending and initiatives reflect these goals. The City Council adopted the five strategic priorities of Civic Engagement, Focused Redevelopment, Community Image, Financial Stability and Vibrant Neighborhoods defined as follows: Civic Engagement In order to clearly understand and effectively respond to community needs, the City will consistently seek the input from a broad range of stakeholders from the general public, non- profit and for profit sectors. Efforts to engage the community will be transparent and responsive. Our engagement efforts will be deliberately inclusive and culturally sensitive. Focused Redevelopment Redevelopment and renewal of commercial, industrial and residential property is essential to the health and vitality of the City. The City will lead efforts to maintain and increase the value of private properties and will make the necessary supporting infrastructure investments. We will encourage entrepreneurial investment and make strategic public investments to create jobs and grow the City’s tax base. Community Image Our ability to attract and retain citizens and businesses is directly influenced by the perception of the City. We will take specific actions to assure that Brooklyn Center is recognized as a high quality, attractive and safe community. We will accomplish this by providing exceptional customer experience, vibrant neighborhoods and a sense of community thereby attracting private investment. Financial Stability We will maintain a positive financial position with a long term perspective by diversifying revenue sources, aligning fees to adequately reflect service costs, stabilizing property taxes while reducing the City’s reliance on State shared revenues, and ensuring that revenues are adequate to fund services and infrastructure needs. Vibrant Neighborhoods Neighborhoods will be attractive, safe, inclusive of a diverse housing stock with owner occupied and quality rental properties. Citizens will feel connected to each other and the natural environment will be protected and preserved for the enjoyment of future generations. 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. Residential housing makes up 42.5% of the 2014 tax capacity base which is a decrease of 2.9% from the 2013 tax capacity base, while the commercial portion of the tax base increased by 3.0%. According to the Hennepin County Assessor’s Office, for the valuation used to calculate the 2014 property tax payments, the median value home in Brooklyn Center is $114,200 compared to $119,800 in the previous valuation. 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 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 receipts for fiscal year 2013 totaled $881,252. The City issued a total of 7,355 in total building permits in 2013, an increase from 6,252 in total building permits issued in 2012. Long Term Financial Planning The State of Minnesota has provided significant funding to local governments through the Local Government Aid (LGA) program over the past three decades. Funding shortfalls at the State budgetary level have affected the allocation and distribution of LGA negatively. In 2013, the State’s tax bill included an increase and a new formula for the distribution of LGA beginning in 2014. For the City of Brooklyn Center the certified LGA under the new formula for 2014 is $1,352,440, which is an increase of $941,062 from 2013. The State’s tax bill also included a sales tax exemption for city and county purchases made on or after January 1, 2014. This will include most purchases, but does not include purchases of goods or services generally provided by a private business (which excludes the Earle Brown Heritage Center, golf course and liquor stores). Based on a review of the 2012 activity, the City estimates total savings from the sales tax exemption of approximately $142,000. 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. Major Initiatives Planning and design efforts are currently underway for a new water treatment plant that will filter and remove manganese as well as other contaminants from the drinking water. The estimated cost of the water treatment plant is $18.2 million. The future plant will be located on City property between Camden Avenue and Highway 252. Construction is expected to begin in the summer of 2014 with completion anticipated by fall 2015. The City has applied to the Minnesota Public Facility Authority for a Drinking Water Revolving loan. Successful redevelopment continues to be the key to commercial and industrial tax base growth including: Shingle Creek Crossing, an 80-acre P.U.D. that includes the redevelopment of the former Brookdale Mall. In 2011, a significant portion of Brookdale Mall was removed and planned for redevelopment of a shopping center that included the existing Sears and Kohl’s department stores and the Applebee’s restaurant. The initial phase included the partial daylighting of Shingle Creek and the infrastructure improvements for a 183,000 square-foot Walmart store, 15 new building pads, and the renovation of 169,000 square-feet of the former Brookdale Mall. In 2012, the Walmart store was opened and construction began on a 38,000 square-foot building for LA Fitness and three retail buildings providing 29,134 square-feet of new commercial tenant space. nd In 2013, the 2 phase of the site improvements was completed. The LA Fitness Store was opened and several tenant improvements within the three retail buildings were completed and the buildings occupied. Site plans were approved for the Discount Tire Store, a fourth multi- tenant retail building, and replacement of the food court portion of the former mall with ten retail buildings to facilitate several junior box retailers. Development activity scheduled for 2014 include the demolition of the 169,000 square-foot food court building with the immediate construction of 92,000 square-feet of retail buildings, the construction of the Discount Tire Store and an 11,200 square-foot muti-tenant building. The southern portion of the 80 acre occupancy permit, comprises 46 acres planned for a mixed use commercial, office and residential P.U.D. A housing market study was completed and the architectural firm was retained to prepare a mixed use concept plan for this 46 acre site. On December 20, 2013, the EDA acquired the 23.2 acre Brookdale Square shopping center site which adjoins the EDA’s 8.4 acre former Brookdale Ford dealership property. The EDA’s overall strategy for this portion of the site is to promote redevelopment opportunities for market rate apartments that include the type of units and amenities associated with move up housing options. Luther Auto Group has completed a major portion of their redevelopment plans for the 39 acres located on the north side of the I-694 and Brooklyn Boulevard interchange. The 2010 major renovations to the Chevrolet and Buick & GMC dealerships. The 2012 completion of a 52,228 square-foot Honda dealership and a 53,830 square-foot Toyota dealership. The 2013 approvals for the construction of a 42,360 square-foot Volkswagen dealership scheduled to be completed in 2014. The redevelopment of industrial properties include: The completion of France Avenue IV Business Park, a 90,000 square-foot multi-tenant building in 2012. A revised site plan that increased the building size for the former Howe Fertilizer site from 51,000 square-feet to 60,000 square-feet for the former Howe Fertilizer Site. The Sign Zone acquisition of the Palmer Lake Plaza office industrial buildings. Sign Zone plans to renovate this 140,000 square-foot facility and consolidate their business operations in Brooklyn Center. 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 year’s General Fund operating budget. This provides both for cash flow needs and emergency expenditures in the short term. The City Council adopted a Capital Project Funding Policy in January 2014, to provide a recurring sources of funding for the City’s 15-year Capital Improvement Plan. The Policy specifically identifies three main funding sources as follows: 1.Audited year-end General Fund unassigned fund balance above 52% of the next year’s General Fund operating budget 2.Audited year-end Liquor Fund unrestricted cash balance that exceeds three and a half months of the next year’s operating budget and one year of budgeted capital equipment needs. 3.Local Governmental Aid (LGA) received in the amount of $650,000 or half of the amount received by the City (whichever is greater) 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. 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, 2012. 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 2013 report conforms to Certificate of Achievement Program requirements. It will be submitted to the GFOA to determine its eligibility for another certificate. CITY OF BROOKLYN CENTER, MINNESOTA PRINCIPAL OFFICIALS December 31, 2013 NamePositionTerm of OfficeTerm Expires ELECTED OFFICIALS Tim WillsonMayorFour YearsDecember 31, 2014 Carol KlevenCouncil MemberFour YearsDecember 31, 2014 Kris Lawrence-AndersonCouncil MemberFour YearsDecember 31, 2016 Dan RyanCouncil MemberFour YearsDecember 31, 2014 Lin MyszkowskiCouncil MemberFour YearsDecember 31, 2016 APPOINTED OFFICIALS Cornelius L. BoganeyCity ManagerAppointed Charles LeFevreCity AttorneyContractual Appointee Sharon KnutsonCity ClerkAppointed Vickie SchleuningAssistant City Manager/Building and Community Standards DirectorAppointed Kevin BennerPolice ChiefAppointed Gary EitelBusiness and Development DirectorAppointed Lee GatlinFire ChiefAppointed James GlasoeCommunity Activities, Recreation and Services DirectorAppointed Steve LillehaugDirector of Public Works/City EngineerAppointed Nathan ReinhardtFinance DirectorAppointed Cz““-zŒ {;-·zš“ INDEPENDENT AUDITOR’S REPORT To the City Council and Management City of Brooklyn Center, Minnesota RFS EPORT ON THE INANCIAL TATEMENTS We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brooklyn Center, Minnesota (the City) as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. M’RFS ANAGEMENTSESPONSIBILITY FOR THE INANCIALTATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. A’R UDITORSESPONSIBILITY Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. (continued) O PINIONS In our opinion, the financial statements referred to on the previous page present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2013, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparisons for the General Fund and major special revenue fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. OM THERATTERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, which follows this report letter, and the required supplementary information, which follows the notes to basic financial statements, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual fund statements and schedules, and the statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not required parts of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. (continued) ORRGAS THEREPORTINGEQUIRED BY OVERNMENT UDITING TANDARDS In accordance with Government Auditing Standards, we have also issued our report dated May 8, 2014 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Minneapolis, Minnesota May 8, 2014 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 As management of the City of Brooklyn Center (the City), we offer readers of the City'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, 2013. 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 1-7 of this CAFR. Financial Highlights •The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $135,380,191 (net position). Of this amount, $23,413,414 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors •The City’s total net position increased by $5,720,847 (4.41%) from the previous year. A portion of this increase is attributed to the City investing in properties that have future potential for redevelopment activities. The City also issued bonds during the year to replenish funding that has been used over the past few years to improve street infrastructure improvements. •As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $30,567,053, which is an increase of $6,740,806 (28.29%) from the previous year. Of the total fund balance, $8,169,955 (26.73%) is unassigned, which is free from any internal or external constraints of its use. •The General fund has a fund balance of $12,382,713 at the close of the current fiscal year. During 2013, the fund balance increased $1,695,817 (15.87%) from the previous year. The unassigned fund balance at year end is $9,602,450, which represents 52% of the following years budget. The remaining portion of the fund balance is nonspendable (for prepaid items & inventory), or assigned (for the capital improvement funding plan). •The City’s total outstanding bonded debt increased by $8,170,000 during the current fiscal year. This can be attributed to two new bond issues. One of the bonds was issued for street infrastructure improvements, while the other issue was to invest in properties which have future redevelopment attributes for the City. 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 private-sector business. The statement of net position presents information on all of the City’s assets and liabilities, with the difference 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 the 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). 15 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 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, parks & recreation, economic development, and interest on long-term debt. The business- type activities of the City include: municipal liquor, golf course, earle brown heritage center, water utility, sanitary sewer utility, storm drainage utility, street light utility, and the recycling utility. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority and Economic Development Authority, for which the City is financially accountable. Although legally separate, these component units, function for all practical purposes as a department of the City, and therefore have been included as an integral part of the primary government. The government-wide financial statements can be found on pages 27 through 29 of this CAFR. Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like 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 statements. 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 24 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 following: General fund, Tax Increment District No. 3, and Infrastructure Construction fund, which are considered to be major funds. Data from the other 21 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 or schedules, elsewhere in this CAFR. The City adopts an annual appropriated budget for nearly all funds presented in this CAFR. A budgetary comparison statement has been provided in the basic financial statements for the General fund and each major special revenue fund. The budgetary comparison statements for any nonmajor funds are provided elsewhere in this CAFR. The basic governmental fund financial statements can be found on pages 30 through 35 of this CAFR. 16 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Proprietary Funds: Proprietary funds provide similar information to the government-wide financial statements, but in more detail. 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 government-wide financial statements. The City uses enterprise funds to account for its: municipal liquor, golf course, Earle Brown Heritage Center, water utility, sanitary sewer utility, storm drainage utility, street light utility, and recycling utility. All of the City's enterprise funds are considered to be major funds, and separate information is provided for each of them in the basic financial statements. 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 to account for its: central garage, employee retirement, and compensated absences accumulations. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual data for the internal service funds is provided in the form of combining statements elsewhere in this CAFR. Because all of these services predominately benefit governmental rather than business-type functions, they have been included as governmental activities in the government-wide financial statements. The basic proprietary fund financial statements can be found on pages 36 through 41 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 43 through 72 of this CAFR. Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information, which is a schedule of funding progress for other post-employment benefits (OPEB). The schedule of funding progress can be found on page 73 of this CAFR. The combining and budgetary comparison statements referred to earlier in connection with nonmajor governmental funds and internal internal service funds are presented immediately following the required supplementary information. Combining and budgetary comparison statements can be found on pages 78 through 116 of this CAFR. 17 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 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 $135,380,191 at the close of the most recent fiscal year. The largest portion of the City's net position ($84,747,691 or 62.60%) reflects its investment in capital assets, which includes: land infrastructure, buildings, and machinery & 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 OF BROOKLYN CENTER - SUMMARY OF NET POSITION Governmental ActivitiesBusiness-Type ActivitiesTotal 201320122013201220132012 Current and other assets $ 46,616,66365,182,089$ 15,413,732$ 15,443,090$ 80,595,821$ 62,059,753$ Capital Assets 48,148,72949,201,203 42,466,488 42,406,210 91,667,691 90,554,939 Total assets 94,765,392114,383,292 57,880,220 57,849,300 172,263,512 152,614,692 Long-term liabilities outstanding 15,055,15124,180,322 1,800,000 1,940,000 25,980,322 16,995,151 Other liabilities 4,314,0319,497,393 1,405,606 1,646,166 10,902,999 5,960,197 Total liabilities 19,369,18233,677,715 3,205,606 3,586,166 36,883,321 22,955,348 Net investment in capital assets 45,261,62942,281,203 42,466,488 42,406,210 84,747,691 87,667,839 Restricted 24,259,29227,219,086 - - 27,219,086 24,259,292 Unrestricted 5,875,28911,205,288 12,208,126 11,856,924 23,413,414 17,732,213 Total Net Position $ 75,396,21080,705,577$ 54,674,614$ 54,263,134$ 135,380,191$ 129,659,344$ 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. A portion of the City’s net position (20.11%) represents resources that are subject to external restrictions on how they may be used. The remaining portion (17.29%) may be used to meet the City's ongoing obligations. The governmental activities have a significant increase in current assets over the previous year. The largest factor in this increase is with the cash & investments balances. Some of this increase however, was due to an error by the County, who significantly over-settled the last property tax settlement of 2013. This amount is recorded as a liability to the County, which can be noted in the increase of other liabilities. The governmental activities, also had a significant increase in the amount of long-term liabilities from the previous year. This increase is attributable to the issuance of two bond issues, which were used for street infrastructure improvements and to acquire target properties in the City's redevelopment plans. 18 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Governmental Activities Governmental activities resulted in an increase of the City's net position by $5,309,367 (92.81%), accounting for the majority of the City's increase in net position. Key elements of the changes are as follows: CITY OF BROOKLYN CENTER - CHANGES IN NET POSITION Governmental ActivitiesBusiness-Type ActivitiesTotal Revenues: 201320122013201220132012 Program revenues Charges for services $ 3,672,9512,331,973$ 18,866,176$ 18,888,703$ 21,198,149$ 22,561,654$ Operating grants and contributions 3,165,5883,089,220 - - 3,089,220 3,165,588 Capital grants and contributions 491,4044,427,586 52,775 - 4,480,361 491,404 General revenues Property taxes 14,307,99314,943,008 - - 14,943,008 14,307,993 Other taxes 3,633,8693,979,872 - - 3,979,872 3,633,869 Grants and contributions not restricted to specific programs 496,679590,916 - - 590,916 496,679 Unrestricted investment earnings 85,560(81,438) (27,223) 32,998 (108,661) 118,558 Gain on disposal of assets 113,97654,211 - - 54,211 113,976 Total revenues 25,968,02029,335,348 18,891,728 18,921,701 48,227,076 44,889,721 Expenses: General government 3,246,0153,165,401 - - 3,165,401 3,246,015 Public safety 9,604,5219,618,906 - - 9,618,906 9,604,521 Public works 3,561,9144,215,855 - - 4,215,855 3,561,914 Community services 141,505149,203 - - 149,203 141,505 Parks and recreation 2,796,5612,752,539 - - 2,752,539 2,796,561 Economic development 5,438,3723,833,915 - - 3,833,915 5,438,372 Interest on long-term debt 768,241490,162 - - 490,162 768,241 Municipal liquor -- 5,674,937 5,591,091 5,674,937 5,591,091 Golf course -- 263,425 273,023 263,425 273,023 Earle Brown Heritage Center -- 4,835,131 4,962,692 4,835,131 4,962,692 Water utility -- 2,025,496 1,855,345 2,025,496 1,855,345 Sanitary sewer utility -- 3,382,810 3,317,427 3,382,810 3,317,427 Storm drainage utility -- 1,552,327 1,501,652 1,552,327 1,501,652 Street light utility -- 257,079 222,835 257,079 222,835 Recycling utility -- 289,043 285,853 289,043 285,853 Total expenses 25,557,12924,225,981 18,280,248 18,009,918 42,506,229 43,567,047 Change in net position before transfers 410,8915,109,367 611,480 911,783 5,720,847 1,322,674 Transfers 436200,000 (200,000) (436) - - Change in net position 411,3275,309,367 411,480 911,347 5,720,847 1,322,674 Net Position - January 1 74,984,88375,396,210 54,263,134 53,351,787 129,659,344 128,336,670 et Position - December 31 N $ 75,396,21080,705,577$ 54,674,614$ 54,263,134$ 135,380,191$ 129,659,344$ Governmental activities accounted for 92.81% of the increase in the City's net position. A significant change from the previous year can be accounted for in capital grants, in the public works function. The City completed a significant street infrastructure improvement project during 2013. This project was partially funded with special assessments to the respective property owners. The remainder of the capital grants variance is attributable to municipal state-aid construction projects, of which the City has a very large receivable balance. 19 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Governmental activities also has a large variance in operating grants from the previous year. During 2012, the City was awarded a very large grant for the environmental cleanup of a redevelopment area within the City. As this project was primarily in 2012, the decrease in economic development expenses is also evident. Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Function Expenses vs. Program Revenues 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - GeneralPublic safetyPublic worksCommunityParks andEconomicInterest on governmentservicesrecreationdevelopmentlong-term debt ExpenseProgram Revenue Revenues by Source Other general revenues Investment earnings Other taxes 2.2% -0.3% 13.6% Charges for services 7.9% Operating grants 10.5% Property taxes 50.9% Capital grants 15.2% 20 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Business-type Activities Business-type activities increased net position by $411,480, which accounts for only 7.19% of the total growth in the City's net position. The factors contributing to this change are illustrated below: Function Expenses vs. Program Revenues 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - MunicipalGolf courseEarle BrownWater utilitySanitaryStormStreet lightRecycling liquorHeritagesewer utilitydrainageutilityutility Centerutility ExpenseProgram Revenue Business-type Activities -Function Expenses Street Light Utility Storm drainage utility Sanitary sewer utility 1.4% 8.5% 18.5% Recycling utility 1.6% Water utility 11.1% Municipal liquor 31.0% Earle Brown Heritage Center Golf course 26.5% 1.4% The net position of the business-type activities increased, but operations of the golf course and Earle Brown Heritage Center provided for decreases in net position individually. The golf course sold more than one thousand fewer rounds in comparison to 2012, with poor weather, being the primary factor. The Earle Brown Heritage Center decreased due to fewer event bookings. 21 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Financial Analysis of the Government's Funds Governmental Funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, 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 $30,567,053, which is an increase of $6,740,806 (28.29%) from the previous year. The unassigned fund balance, which is not subject to internal or external constraints upon its use, is $8,169,955, or only 26.73% of total fund balance. A small portion of the fund balance, $26,139 (0.09%) is in nonspendable form, as it is invested in prepaid items and inventory. The remaining fund balance has either internal or external constraints upon its use, and can be broken down into the following components: $12,037,147 (39.38%) of restricted fund balance; $7,579,688 (24.80%) of committed fund balance; and $2,754,124 (9.01%) of assigned fund balance. A more detailed breakdown of fund balance components can be found in the basic financial statements. The General fund is the primary operating fund of the City. At the end of the current fiscal year, total fund balance is $12,382,713. As a measure of the General fund's liquidity, it may be useful to compare both unassigned and total fund balance, to total fund expenditures. Unassigned balance, which is $9,602,450, represents 56.13% of the current year General fund expenditures. Total General fund balance represents 72.39% of those same expenditures. The fund balance of the City’s general fund increased by $1,695,817 (15.87%) from the previous year. The City had budgeted for a break-even year in 2013. The increase was attributed to positive variances for both revenues and expenditures. Revenues were in excess of budget due to distributions of excess tax increments, property tax collections were over 99% of the current year levy, and building permits, of which there were more than one thousand permits issue in excess of the budget. The most significant expenditure variance variance was in the police department, due to the patrol division being short handed in the personnel area for a majority of 2013. The Tax Increment District No. 3 fund has a total fund balance of $4,051,816 at the end of the year. The increase in fund balance was $1,521,713 (60.14%) from the previous year. The fund incurred expenditures of $5,388,557 during the current year, much of which was for the acquisition of targeted properties in the City's redevelopment plan. The City issued bonds in the current year to finance said acquisitions. A portion of the bonds proceeds were remaining at year end, as one significant property will not be closed upon until April of 2014, and is the primary reason for the increase. The Infrastructure Construction fund has an ending fund balance of $970,142, an increase of $2,975,938 (148.37%) from the previous year. The fund incurred $3,517,829 of expenditures during the year, with infrastructure improvements to the Kylawn Area being the significant project. The City issued bonds during the current year, both to finance the current year expenditures, but also to reimburse for infrastructure improvement projects conducted over the previous years. Proprietary Funds: City's proprietary funds provide the same type of information presented as business-type activities The found in the government-wide financial statements, but in more detail. The enterprise funds have a combined ending net position of $55,012,673, of which $12,546,185 (22.81%) is unrestricted and can be used to meet the operations. As a measure of the liquidity of the enterprise funds, it may be useful to compare the unrestricted net position to the operating expenses. For the current year, unrestricted net position is 106.95% of the current year operating expenses. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's business-type activities. 22 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 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 $1,386,103. 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 increments. Actual expenditures and other financing uses were lower than the amended budget for the year by $309,714. This was the result of several staff positions being left unfilled during a portion of 2013, in Finance and the Police Department. Departments that had significantly lower than budgeted expenditures include: Finance; Police; and Parks and Recreation. Capital Asset and Debt Administration Capital Assets: The City's investment in capital assets for its governmental and business-type activities at the end of the current year, amounts to $91,667,691 (net of accumulated depreciation). This investment in capital assets includes: land, buildings, infrastructure, machinery and equipment and construction in progress. The City's investment in capital assets increased $1,112,752 (1.23%) from the previous year. Major capital asset events during the current year included the following: •The Kylawn Park Area infrastructure reconstruction project is near completion, with $5,939,314 of additions to construction in progress. This amount includes work on streets, as well as water, sewer and storm utilities. •The Earle Brown Heritage Center conducted some building and land improvements during the year, including remodeling some office space, and improving a dewatering well on the property. These improvements added $109,519 of capital assets. •Street lighting improvements, with a final cost of $246,073 were made in the Earle Brown & Opportunity Drive area. •The Central Garage added 12 pieces of machinery & equipment during the year. The total outlay for machinery and equipment during the year was $882,846. The additions include, but are not limited to: a Caterpillar loader, mowers, police vehicles and a multipurpose dump/plow truck. CITY OF BROOKLYN CENTER - CAPITAL ASSETS (net of depreciation) Governmental ActivitiesBusiness-type ActivitiesTotal 201320122013201220132012 Land $ 3,537,4733,537,473$ 3,194,983$ 3,194,983$ 6,732,456$ 6,732,456$ Easements 104,20899,670 20,102 24,165 119,772 128,373 Construction in progress 186,7653,375,955 2,793,558 57,956 6,169,513 244,721 Land improvements -- 213,198 178,593 213,198 178,593 Other park improvements 6,253,4186,087,696 - - 6,087,696 6,253,418 Buildings and structures 9,046,6438,375,053 4,010,475 4,747,752 12,385,528 13,794,395 Machinery and equipment 3,869,2153,931,850 349,008 314,190 4,280,858 4,183,405 Streets 25,151,00723,793,506 - - 23,793,506 25,151,007 Street light systems -- 575,610 357,908 575,610 357,908 Mains and lines -- 31,309,554 33,530,663 31,309,554 33,530,663 Total $ 48,148,72949,201,203$ 42,466,488$ 42,406,210$ 91,667,691$ 90,554,939$ Additional information on the City’s capital assets can be found in Note 3 (D) on pages 56 through 57 of this CAFR. 23 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 Long-Term Debt: At the end of the current year, the City had outstanding long-term bonded debt of $26,330,000. CITY OF BROOKLYN CENTER - OUTSTANDING DEBT Governmental ActivitiesBusiness-type ActivitiesTotal 201320122013201220132012 General obligation bonds$ 700,000-$ $ -$ -$ 700,000-$ General obligation tax increment bonds17,470,00012,795,000- 17,470,000-12,795,000 General obligation improvement bonds6,920,0002,590,000- 6,920,000-2,590,000 General obligation revenue bonds- 1,940,000-2,075,0001,940,0002,075,000 Compensated absences1,232,5511,264,220- 1,232,551-1,264,220 Net OPEB obligation586,026487,353- 586,026-487,353 Total$26,208,577$17,836,573$1,940,000$2,075,000$28,148,577$ 19,911,573 The City’s total bonded debt increased $8,170,000 (44.99%) from the previous year. This can be attributed to two new bond issues. Series 2013A - G.O. Tax Increment bonds of $6,040,000, were issued to finance the acquisition of targeted properties which fit in the City's future redevelopment plans. Series 2013B - G.O. Improvement bonds of $4,920,000, were issued to finance street infrastructure improvements. The City reduced its bonded debt during the year by paying off $2,790,000 of principal on previously issued bonds. 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 $40,152,162. The City does not currently have any debt outstanding that is applicable to the limit. Additional information on the City’s long-term debt can be found in Note 3 (G) on pages 61 through 63 of this CAFR. Economic Factors and Next Year's Budget and Rates All of these factors were considered in the preparation of the City’s budget for the 2014 fiscal year. •The unemployment rate for the City is 5.10% at the end of the 2013 fiscal year, which is a decrease from the rate of 6.40% a year ago. This compares to the State’s average unemployment rate of 4.60% and the national average of 6.50%. •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. •In December 2013 the Economic Development Authority purchased a 23.2 acre property formerly known as the Brookdale Square Center. The purchase is part of an overall strategy to promote redevelopment opportunities for market rate apartments that include the type of units and amenities associated with move up housing options. 24 CITY OF BROOKLYN CENTER, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2013 •Planning and design efforts are currently underway for a new water treatment plant that will filter and remove manganese as well as other contaminants from the drinking water. The estimated cost of the water treatment plant is $18.25 million. Construction is expected to begin in the summer of 2014 with the completion anticipated by fall 2015. •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. •The State of Minnesota enacted levy limits impacting city governments for 2014. The City of Brooklyn Center is limited to a 2014 property tax levy increase of 0.36%. •The State of Minnesota passed into law a new formula that included an increase for the distribution of Local Government Aid (LGA). Under the new formula, the City of Brooklyn Center's Certified LGA for 2014 is $1,352,440, which is an increase of $941,062. •The State also passed into law a sales tax exemption for most city and county purchases made of or after January 1, 2014. The City estimates total savings from the sales tax exemption of approximately $142,000. During the year, fund balance in the general fund increased by $1,685,817. The City’s policy is to maintain a General fund unassigned fund balance of 50% - 52% of the ensuing year’s budgeted General fund operations. In January 2014, the City Council adopted a capital project funding policy that transfers the amount of fund balance exceeding 52% to the Capital Improvements fund following the completed audit of the City's CAFR. The City assigned $2,754,124 (the amount exceeding 52%) for Capital Improvements within the General fund for 2013. Total unassigned and assigned fund balance at the end of 2013 was $12,356,574 (66.90%) of the adopted 2014 budgeted expenditures. For 2014, the overall water and sanitary sewer rates were adjusted upward by 6.00%. The quarterly charge for street lights increased by $0.60 and the recycling rates increased by 3.00%. There will be no changes to the current storm sewer fee for 2014. These rates are reviewed annually in conjunction with the update and projection of the Capital Improvement Plan of the City. The review serves two main purposes. First, utility revenues must ensure that the municipal utilities are self-supporting through revenue, as required by the City charter. These rates along with future projected rate increases are reviewed annually to ensure compliance with the requirements of the charter. In addition, the rates must generate sufficient cash to provide for the maintenance, replacement and upgrading of facilities and equipment without unduly burdening the customers. Rates are regularly compared to neighboring municipalities in these calculations. Requests for Information This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430. 25 .­z-Cz““-zŒ {··;’;“·­ CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET POSITION December 31, 2013 GovernmentalBusiness-Type ActivitiesActivitiesTotal ASSETS Cash and investments39,584,574$ 12,980,160$ 52,564,734$ Receivables: Accounts - net349,866 2,156,306 2,506,172 Taxes541,494 - 541,494 Special assessments3,999,361 466,584 4,465,945 Internal balances1,207,360 (1,207,360) - Due from other governments3,868,006 52,775 3,920,781 Prepaid items160 200,733 200,893 Inventories47,593 764,534 812,127 Notes receivable1,150,000 - 1,150,000 Assets held for resale14,313,175 - 14,313,175 Restricted assets: Cash and investments120,500 - 120,500 Capital assets: Nondepreciable7,002,132 5,998,826 13,000,958 Depreciable42,199,071 36,467,662 78,666,733 Total assets114,383,292 57,880,220 172,263,512 LIABILITIES Accounts payable934,026 335,693 1,269,719 Accrued salaries and wages604,213 114,012 718,225 Accrued interest payable293,621 32,944 326,565 Due to other governments5,485,523 69,450 5,554,973 Contracts payable- 147,746 147,746 Deposits payable30,155 348,820 378,975 Unearned revenue1,100 216,941 218,041 Liabilities payable from restricted assets: Deposits payable120,500 - 120,500 Compensated absences payable: Due within one year123,255 -123,255 Due in more than one year1,109,296-1,109,296 Net OPEB obligation: Due in more than one year586,026-586,026 Bonds payable: Due within one year1,905,000140,0002,045,000 Due in more than one year22,485,0001,800,00024,285,000 Total liabilities33,677,7153,205,60636,883,321 NET POSITION Net investment in capital assets, net of related debt42,281,20342,466,48884,747,691 Restricted27,219,086 27,219,086- Unrestricted11,205,28812,208,12623,413,414 Total net positio$80,705,577$54,674,614$135,380,191 n The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 Charges For FUNCTIONS/PROGRAMS ExpensesServices Government activities: General government$ 3,165,401$ 790,316 Public safety 9,618,906 786,828 Public works 4,215,855 5,879 Community services 149,203 7,772 Parks and recreation 2,752,539 650,522 Economic development 3,833,915 90,656 Interest on long-term debt 490,162 - Total government activities 24,225,981 2,331,973 Business-type activities: Municipal liquor 5,674,937 6,072,334 Golf course 263,425 167,655 Earle Brown Heritage Center 4,835,131 4,294,723 Water utility 2,025,496 2,318,176 Sanitary sewer utility 3,382,810 3,675,936 Storm drainage utility 1,552,327 1,622,012 Street light utility 257,079 417,470 Recycling utility 289,043 297,870 Total business-type activities 18,280,248 18,866,176 Total$42,506,229$ 21,198,149 The notes to the financial statements are an integral part of this statement. Program RevenuesNet (Expense) Revenue and Changes in Net Position OperatingCapital Grants andGrants andGovernmentalBusiness-Type ContributionsContributionsActivitiesActivitiesTotal $ -$ (2,375,085)-$ $ (2,375,085)-$ 1,144,447 (7,687,631)- (7,687,631)- 133,370 4,216,310 139,704 - 139,704 - - (141,431) - (141,431) 44,479 211,276 (1,846,262) (1,846,262)- 1,766,924 (1,976,335)- (1,976,335)- - - (490,162) - (490,162) 3,089,220 4,427,586 (14,377,202) (14,377,202)- - - - 397,397 397,397 - - - (95,770) (95,770) - - - (540,408) (540,408) - 39,581 - 332,261 332,261 - 13,194 - 306,320 306,320 - - - 69,685 69,685 - - - 160,391 160,391 - - - 8,827 8,827 -52,775-638,703 638,703 $ 3,089,220$ 4,480,361(14,377,202)638,703 (13,738,499) General revenues: Property taxes 14,943,008 14,943,008- Tax increments 3,098,620 - 3,098,620 Lodging taxes 881,252 - 881,252 Grants and contributions not restricted to specific programs 590,916 - 590,916 Unrestricted investment earnings (81,438) (27,223) (108,661) Gain on disposal of capital asset 54,211 - 54,211 Transfers 200,000 (200,000) - Total general revenues and transfers 19,686,569 (227,223) 19,459,346 Change in net position 5,309,367 411,480 5,720,847 Net position - January 1 75,396,210 54,263,134 129,659,344 et position - December 31$80,705,577$54,674,614$ 135,380,191 N CITY OF BROOKLYN CENTER, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2013 TaxOther IncrementInfrastructureNonmajorTotal GeneralDistrict No. 3ConstructionGovernmentalGovernmental ASSETS Cash and investments12,836,668$ 3,895,568$ 6,381,360$ 9,750,701$ 32,864,297$ Receivables: Accounts - net96,211 15,786 37,737 179,098 328,832 Current taxes141,185 193,281 - 10,092 344,558 Delinquent taxes114,647 69,476 - 12,813 196,936 Special assessments149,825 - 2,744,878 1,104,658 3,999,361 Due from other funds80,794 - - - 80,794 Due from other governments88,597 - - 3,779,409 3,868,006 Prepaid items160 - - - 160 Notes receivable- - - 1,150,000 1,150,000 Inventories25,979 - - - 25,979 Advances to other funds- - - 3,220,209 3,220,209 Asset held for resale- 13,776,175 - 537,000 14,313,175 Restricted assets: Cash and investments120,500 - - - 120,500 Total asset 17,950,28613,654,566 9,163,975 19,743,980 60,512,807 s LIABILITIES Accounts payable287,598 47,491 61,735 366,164 762,988 Accrued salaries and wages561,768 - - 24,315 586,083 Due to other funds- - - 3,981 3,981 Due to other governments39,522 5,328 5,407,289 33,289 5,485,428 Deposits payable1,796 - - 28,359 30,155 Unearned revenue1,100 - - - 1,100 Advances from other funds- - - 2,427,721 2,427,721 Liabilities payable from restricted assets: Deposits payable120,500 - - - 120,500 Total liabilities1,012,284 52,819 5,469,024 2,883,829 9,417,956 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes114,647 - - 12,813 127,460 Unavailable revenue - tax increments- 69,476 - - 69,476 Unavailable revenue - special assessments144,922 - 2,724,809 1,094,437 3,964,168 Unavailable revenue - notes receivable- - - 150,000 150,000 Unavailable revenue - intergovernmental- - - 1,903,519 1,903,519 Unavailable revenue - assets held for resale- 13,776,175 - 537,000 14,313,175 Total deferred inflows of resources259,569 13,845,651 2,724,809 20,527,798 3,697,769 FUND BALANCES Nonspendable Prepaid items 160 - - - 160 Inventories 25,979 - - - 25,979 Restricted Statutory housing obligation - 483,913 - - 483,913 Tax increment financing 3,567,903- 3,056,923- 6,624,826 Economic development - - 1,052,131- 1,052,131 Public safety - - - 57,181 57,181 Community amphitheater - - - 304,402 304,402 Debt service - - 1,190,972- 1,190,972 State-Aid street construction - - 2,323,722- 2,323,722 Committed Infrastructure improvements - - 970,142 - 970,142 Public safety - - - 90,265 90,265 Cable communications - - - 223,075 223,075 Community recreation - - - 39,464 39,464 Capital improvements - - 3,072,758- 3,072,758 Emergency capital improvements - - 1,456,459- 1,456,459 Street improvements - - 1,689,737-1,689,737 Technology improvements - - - 37,788 37,788 Assigned Capital improvements 2,754,124 - - 2,754,124- Unassigned (deficit) 9,602,450 - (1,432,495)- 8,169,955 Total fund balances 12,382,713 4,051,816 970,142 13,162,382 30,567,053 Total liabilities, deferred inflows of resources and fund balances$13,654,566$17,950,286$9,163,975$ 19,743,980$60,512,807 The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2013 Fund balances - governmental funds$ 30,567,053 Amounts reported for the governmental activities within the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported as assets in governmental funds. Cost of capital assets 76,653,484 Accumulated depreciation (31,274,820) Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore, are not reported as liabilities in governmental funds. Bonds payable (24,390,000) Accrued interest payable (293,621) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore, are unavailable in governmental funds. Delinquent property taxes receivable 127,460 Delinquent tax increments receivable 69,476 Special assessments receivable 3,964,168 Interest on notes receivable 150,000 Intergovernmental receivable 1,903,519 Other long-term assets are not available to pay for current-period expenditures and, therefore, are unavailable in governmental funds. Assets held for resale 14,313,175 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.8,915,683 Total net position - governmental activities80,705,577$ The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 TaxOther IncrementInfrastructureNonmajorTotal GeneralDistrict No. 3ConstructionGovernmentalGovernmental REVENUES Property taxes14,135,990$ -$ -$ 958,474$ 15,094,464$ Tax increments- 2,766,160 - 383,373 3,149,533 Franchise fees- - - 651,832 651,832 Lodging taxes881,252 - - - 881,252 Licenses and permits1,084,003 - - - 1,084,003 Intergovernmental1,086,162 - - 2,073,409 3,159,571 Charges for services990,123 15,786 58,702 9,306 1,073,917 Special assessments160,755 - 1,229,767 486,594 1,877,116 Fines and forfeits287,631 - - 28,351 315,982 Investment earnings (net of market value adjustment)(25,757) (11,886) (21,100) (12,316) (71,059) Miscellaneous165,551 - - 258,271 423,822 Total revenues18,765,710 2,770,060 1,267,369 4,837,294 27,640,433 EXPENDITURES Current: General government3,481,106 - - 146,392 3,627,498 Public safety8,931,642 - - 185,899 9,117,541 Public works2,293,331 - - 88,884 2,382,215 Community services149,203 - - -149,203 Parks and recreation2,411,792 - - 69,971 2,481,763 Economic development418,595 250,588 - 2,407,271 3,076,454 Nondepartmental400,835 - - - 400,835 Administrative services reimbursement(982,037) - - - (982,037) Capital outlay: General government- - - 18,311 18,311 Public safety1,777 - - - 1,777 Public works- - 3,451,216 - 3,451,216 Parks and recreation- - - 91,959 91,959 Economic development- 5,041,224 - 36,327 5,077,551 Debt service: Principal- - - 2,655,000 2,655,000 Interest- - - 698,702 698,702 Fiscal agent fees- - - 15,686 15,686 Bond issuance costs- 96,745 66,613 - 163,358 Total expenditures17,106,244 5,388,557 3,517,829 6,414,402 32,427,032 Excess (deficiency) of revenues over (under) expenditures1,659,466 (2,618,497) (2,250,460) (1,577,108) (4,786,599) OTHER FINANCING SOURCES (USES) Transfers in149,382 4,166 - 4,706,911 4,860,459 Issuance of debt- 6,040,000 4,920,000 10,960,000- Premium on issuance of debt - 61,007 306,398 367,405- Transfers out (113,031) (1,964,963) (2,582,465)- (4,660,459) Total other financing sources (uses) 36,351 4,140,210 5,226,398 2,124,446 11,527,405 Net change in fund balance 1,695,817 1,521,713 2,975,938 547,338 6,740,806 Fund balances (deficits) - January 1 10,686,896 2,530,103 (2,005,796) 12,615,044 23,826,247 Fund balances - December 31$12,382,713$4,051,816$970,142$13,162,382$30,567,053 The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2013 Total net change in fund balances - governmental funds6,740,806$ Amounts reported for governmental activities in the statement of activities are different because: 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 as depreciation. Capital outlays3,309,976 Depreciation expense(2,363,968) Governmental funds report land purchases as expenditures. However, in the statement of activities the cost of those purchases is capitalized, until the assets can be resold. Assets held for resale4,321,058 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Long-term debt issued(10,960,000) Principal repayments2,655,000 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.20,179 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes(151,456) Tax increments(50,913) Special assessments(38,843) Interest on notes receivable40,795 Other charges for services(61,847) Intergovernmental1,903,519 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.(54,939) Change in net position - governmental activitie$5,309,367 s The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) REVENUES Property taxes$ 13,590,682$ 13,590,682$ 14,135,990$ 545,308 Lodging taxes 825,000 825,000 881,252 56,252 Licenses and permits 641,208 641,208 1,084,003 442,795 Intergovernmental 1,057,250 1,057,250 1,086,162 28,912 Charges for services 913,574 913,574 990,123 76,549 Special assessments - 160,755- 160,755 Fines and forfeits 365,000 365,000 287,631 (77,369) Investment earnings (net of market value adjustment) 32,000 32,000 (25,757) (57,757) Miscellaneous 104,275 104,275 165,551 61,276 Total revenues 17,528,989 17,528,989 18,765,710 1,236,721 EXPENDITURES Current: General government3,453,506 3,453,506 3,481,106 (27,600) Public safety9,392,415 9,392,415 8,931,642 460,773 Public works2,290,357 2,290,357 2,293,331 (2,974) Community services153,370 153,370 149,203 4,167 Parks and recreation2,479,482 2,479,482 2,411,792 67,690 Economic development384,037 384,037 418,595 (34,558) Nondepartmental299,470 299,470 400,835 (101,365) Administrative services reimbursement(1,069,398) (1,069,398) (982,037) (87,361) Capital outlay: General government24,000 24,000 - 24,000 Public safety6,250 6,250 1,777 4,473 Parks and recreation17,500 17,500 - 17,500 Total expenditures17,430,989 17,430,989 17,106,244 324,745 Excess of revenues over expenditures 98,000 98,000 1,659,466 1,561,466 ) OTHER FINANCING SOURCES (USES Transfers in - 149,382- 149,382 Transfers out (98,000) (98,000) (113,031) (15,031) Total other financing sources (uses) (98,000) (98,000) 36,351 134,351 Net change in fund balance - 1,695,817- 1,695,817 Fund balance - January 1 10,686,896 10,686,896 10,686,896 - Fund balance - December 31$10,686,896$10,686,896$ 12,382,713$1,695,817 The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA TAX INCREMENT DISTRICT NO. 3 - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) REVENUES Tax increments2,205,354$ 2,205,354$ 2,766,160$ 560,806$ Charges for services- - 15,786 15,786 Investment earnings (net of market value adjustment)- - (11,886) (11,886) Total revenues2,205,354 2,205,354 2,770,060 564,706 EXPENDITURES Current: Economic development- - 250,588 (250,588) Capital outlay: Economic development- - 5,041,224 (5,041,224) Debt service: Bond issuance costs- - 96,745 (96,745) Total expenditures- - 5,388,557 (5,388,557) Excess (deficiency) of revenues over (under) expenditures2,205,354 2,205,354 (2,618,497) (4,823,851) OTHER FINANCING SOURCES (USES) Transfers in- - 4,166 4,166 Issuance of debt- - 6,040,000 6,040,000 Premium on issuance of debt- - 61,007 61,007 Transfers out(1,966,107) (1,966,107) (1,964,963) 1,144 Total other financing sources (uses)(1,966,107) (1,966,107) 4,140,210 6,106,317 Net change in fund balance239,247 239,247 1,521,713 1,282,466 Fund balance - January 12,530,103 2,530,103 2,530,103 - Fund balance - December 312,769,350$ 2,769,350$ 4,051,816$ 1,282,466$ The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2013 Business-Type Activities MunicipalGolfEarle BrownWater LiquorCourseHeritage CenterUtility ASSETS Current assets: Cash and cash equivalents$ 2,073,883$ 400$ 1,872,342$ 2,911,058 Receivables: Accounts - net 7,780 255,403- 523,409 Special assessments - - 466,584- Due from other governments - - - 39,581 Prepaid items 27,245 - 4,791 - Inventories 692,747 2,938 34,054 34,795 Total current assets 2,801,655 3,338 2,166,590 3,975,427 Noncurrent assets: Capital assets: Land 1,390,402- 1,493,300 20,734 Easements - - - - Land improvements - 65,637 377,254 - Buildings and improvements 192,771 487,946 12,338,247 3,033,212 Machinery and equipment 314,634 11,160 361,866 128,668 Street light systems - - - - Mains and lines - - 20,108,544- Construction in progress - - 846,119- Total capital assets 507,405 1,955,145 14,570,667 24,137,277 Less: accumulated depreciation (308,934) (417,891) (10,071,314) (14,667,634) Net capital assets 198,471 1,537,254 4,499,353 9,469,643 Total assets 3,000,126 1,540,592 6,665,94313,445,070 LIABILITIES Current liabilities: Accounts payable230,12110,328 48,552 16,907 Accrued salaries and wages 30,056 3,818 42,173 20,466 Accrued interest payable - - - 24,708 Contracts payable - 147,746- - Due to other funds - 76,813 - - Due to other governments 52,518 77 12,939 3,526 Deposits payable - 347,295- 1,525 Unearned revenue 2,019 - 1,600 213,322 Bonds payable - - 105,000- Compensated absences payable - - - - Total current liabilities 314,714 91,036 600,305 385,454 Noncurrent liabilities: Bonds payable - - 1,350,000- Advances from other funds 792,488- - - Compensated absences payable - - - - Net OPEB obligation - - - - Total noncurrent liabilities 792,488- 1,350,000- Total liabilities 314,714 883,524 600,305 1,735,454 NET POSITION Net investment in capital assets 198,471 1,537,254 4,499,353 9,469,643 Unrestricted 2,486,941 (880,186) 1,566,285 2,239,973 Total net position$2,685,412$657,068$6,065,638$11,709,616 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Net position of business-type activities The notes to the financial statements are an integral part of this statement. Governmental Business-Type ActivitiesActivities- Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal UtilityUtilityUtilityUtilityEnterpriseService $ 1,922,851$ 4,116,903$ 82,395$ 12,980,160328$ $ 6,720,277 860,444 348,889 96,415 63,966 2,156,306 21,034 - - - 466,584- - 13,194 - - - 52,775 - 168,697 - - 200,733- - - - - 764,534- 21,614 2,965,186 4,465,792 178,810 64,294 16,621,092 6,762,925 3,389 287,158 - 3,194,983- - 20,335 10,285 - - 30,620 - - - - 442,891- 166,108 2,705,424 - - 18,757,600- - 179,130 12,718 - 1,008,176- 8,539,852 - 671,933- 671,933- - 19,011,984 25,300,123 - 64,420,651- - 1,089,554857,885- 2,793,558- - 23,009,816 26,468,169 671,933 91,320,412- 8,705,960 (12,242,837) (11,048,991) (96,323) (48,853,924)- (4,883,421) 10,766,979 15,419,178 575,610 42,466,488- 3,822,539 13,732,165 19,884,970 754,420 64,294 59,087,580 10,585,464 25,125 2,174 1,943 543 335,693 171,038 8,725 8,774 - 114,012- 18,130 8,236 - - - 32,944 - - - - 147,746- - - - - - 76,813 - 390 - - - 69,450 95 - - - 348,820- - - - - 216,941- - 35,000 - - 140,000- - 123,255 - ---- 77,476 10,948 1,943 543 1,482,419 312,518 450,000 - - 1,800,000- - - - - 792,488- - - - - - 1,109,296- - - - - 586,026- 450,000 - - 2,592,488- 1,695,322 527,476 10,948 1,943 543 4,074,907 2,007,840 10,766,979 15,419,178 575,610 42,466,488- 3,822,539 2,437,710 4,454,844 176,867 63,751 12,546,185 4,755,085 $ 13,204,689$ 19,874,022$ 752,477$63,75155,012,673$8,577,624 (338,059) $54,674,614 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2013 Business-Type Activities MunicipalGolfEarle BrownWater LiquorCourseHeritage CenterUtility OPERATING REVENUES Sales and user fees6,063,231$ 167,280$ 4,271,578$ 2,275,767$ Cost of sales4,341,225 - 2,134,988 - Total operating revenues1,722,006 167,280 2,136,590 2,275,767 OPERATING EXPENSES Personal services646,098 121,415 944,189 490,311 Supplies31,835 19,537 154,762 140,809 Other services260,548 86,401 689,656 518,381 Insurance13,747 4,605 27,642 20,623 Utilities49,279 21,514 207,654 157,248 Rent302,772 - - - Depreciation28,469 10,787 672,394 639,585 Total operating expenses1,332,748 264,259 2,696,297 1,966,957 Operating income (loss)389,258 (96,979) (559,707) 308,810 NONOPERATING REVENUES (EXPENSES) Intergovernmental- - - 39,581 Investment earnings (net of market value adjustment)(3,723) - (2,637) (7,059) Special assessments- - - 27,428 Gain on sale of capital assets- - - - Other revenue9,103 375 23,145 14,981 Interest and fiscal agent fees- - - (60,247) Total nonoperating revenues (expenses)5,380 375 20,508 14,684 Income (loss) before transfers394,638(96,604)(539,199)323,494 Transfers out(200,000)--- Change in net position194,638(96,604)(539,199)323,494 Net position - January 12,490,774753,6726,604,83711,386,122 et position - December 31$2,685,412$657,068$6,065,638$11,709,616 N Change in net position from this Statement Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net position of business-type activities The notes to the financial statements are an integral part of this statement. Governmental Business-Type Activities Activities- Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal UtilityUtilityUtilityUtilityEnterpriseService $ 1,621,9123,675,936$ 417,470$ 297,870$ 18,791,044$ 1,960,756$ -- - - 6,476,213 - 1,621,9123,675,936 417,470 297,870 12,314,831 1,960,756 194,185200,547 - - 2,596,745 665,077 25,54316,834 2,407 157 391,884 554,432 299,3052,380,146 36,340 287,969 4,558,746 136,025 2,56419,662 1,445 917 91,205 46,016 -40,404 188,516 - 664,615 519 -- - - 302,772 - 1,034,761710,927 28,371 - 3,125,294 693,055 1,556,3583,368,520 257,079 289,043 11,731,261 2,095,124 65,554307,416 160,391 8,827 583,570 (134,368) -13,194 - - 52,775 9,827 (8,169)(5,143) (526) 34 (27,223) (10,379) ----27,428- -----54,211 -100--47,70433,184 (19,941)---(80,188)- (11,890)(8,069)(526)3420,49686,843 295,52657,485159,8658,861604,066(47,525) ----(200,000)- 295,52657,485159,8658,861404,066(47,525) 12,909,16319,816,537592,61254,89054,608,6078,625,149 $13,204,689$19,874,022$752,477$63,751$55,012,673$8,577,624 $404,066 7,414 $411,480 CITY OF BROOKLYN CENTER, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2013 Business-Type Activities MunicipalGolfEarle BrownWater LiquorCourseHeritage CenterUtility CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users6,064,063$ 167,280$ 4,330,802$ 2,218,222$ Receipts from interfund services provided- - - - Payments to suppliers(5,072,840) (123,188) (3,306,928) (853,066) Payments to employees(642,594) (121,003) (936,356) (488,779) Miscellaneous revenue9,103 375 23,145 54,562 Net cash flows provided (used) by operating activities357,732 (76,536) 110,663 930,939 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental- - - - Special assessments- - - 31,269 Interfund receivable- - - 6,896 Interfund payable- 76,813 - - Principal paid on revenue bonds- - - (101,250) Interest paid on revenue bonds- - - (60,985) Transfers out(200,000) - - - Net cash flows provided (used) by noncapital financing activities(200,000) 76,813 - (124,070) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and construction of capital assets(67,896) - (123,284) (841,992) Proceeds from sale of assets- - - - Net cash flows provided (used) by capital and related financing activities(67,896) - (123,284) (841,992) CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments(3,723) - (2,637) (7,059) Net increase (decrease) in cash and cash equivalents86,113 277 (15,258) (42,182) Cash and cash equivalents - January 11,987,7701231,887,600 2,953,240 Cash and cash equivalents - December 31$2,073,883$400$ 1,872,342$2,911,058 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ 389,258$ (96,979)$ (559,707)$ 308,810 Adjustments to reconcile operating income (loss) to net cash flows provided (used) by operating activities: Depreciation 28,469 10,787 672,394 639,585 Other income related to operations 9,103 375 23,145 54,562 (Increase) decrease in assets: Accounts receivable - - 59,224 (67,416) Prepaid items (171) - 932 500 Inventories (25,350) (318) (120) (4,920) Increase (decrease) in liabilities Accounts payable (47,913) 9,187 (93,038) (11,585) Accrued salaries and wages 3,504 412 7,833 1,532 Unearned revenue 832 - - 9,871 Net cash flows provided (used) by operating activities$357,732$(76,536)$ 110,663$930,939 NONCASH FINANCING ACTIVITIES Acquisitions of capital assets on account$ -$ -$ -$ 4,129 Gain on sale of capital assets$ -$ -$ -$ - The notes to the financial statements are an integral part of this statement. Governmental Business-Type ActivitiesActivities- Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal UtilityUtilityUtilityUtilityEnterpriseService $ 1,649,7273,736,203$ 407,601$ 296,208$ 18,870,106$ -$ -- - - - 1,971,210 (365,960)(2,560,638) (229,374) (289,018) (12,801,012) (705,778) (193,114)(199,947) - - (2,581,793) (595,591) 10013,194 - - 100,479 33,184 1,090,753988,812 178,227 7,190 3,587,780 703,025 -- - - - 9,827 -- - - 31,269 - 23,000- - - 29,896 1,962,739 -- - (6,896) 69,917 - -(33,750) - - (135,000) - -(20,187) - - (81,172) - -- - - (200,000) - 23,000(53,937) - (6,896) (285,090) 1,972,566 (1,084,108)(866,320)(188,116) (3,171,716)- (745,994) - - - - 137,535- (1,084,108) (866,320) (188,116) (3,171,716)- (608,459) (5,143) (8,169) (526) 34 (27,223) (10,379) (154,376) 239,264 (10,415) 328 103,751 2,056,753 2,077,227 3,877,639 92,810 12,876,409- 4,663,524 $ 1,922,851$ 4,116,903$ 82,395$ 12,980,160328$$6,720,277 $ 307,416$ 65,554$ 160,391$ 8,827$ 583,570$ (134,368) 710,927 1,034,761 28,371 3,125,294- 693,055 13,194 100 - 100,479- 33,184 60,267 27,815 (9,869) (1,662) 68,359 10,454 (2,043) - - - (782) - - - - (30,708)- 4,694 (101,549) (38,548) (666) 25 (284,087) 26,520 -14,952 69,486 600 1,071- - - - - 10,703 - $ 988,812$ 1,090,753$ 178,227$7,190$3,587,780$703,025 $ 5,448$ 4,284$ -$ -$ 13,861$ 136,852 $ -$ -$ -$ -$ -$ 54,211 42 bš·;­·š Cz““-zŒ{··;’;“·­ CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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)y – The governing board for the EDA is the Cit 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 as a Special Revenue fund. The EDA does not issue separate financial statements. Financial information may be obtained at the City’s offices. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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 Governmental activities,h information on all activities of the primary government and its component units. whic business-type activities normally are supported by taxes and intergovernmental revenues, are reported separately from , 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 Direct expenses offset by program revenues. are those that are clearly identifiable with a specific function or segment. rogram revenues P 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 general revenues and other items not included among program revenues are reported instead as . 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 economic resources measurement focus The government-wide financial statements are reported using the 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. current financial resources measurement focus Governmental fund financial statements are reported using the 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 City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal year. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal year. 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 year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. Only the portion of special assessments receivable due within the current fiscal year 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. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 The City reports the following major governmental funds: General Fund This is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Most of the current day-to-day operations of the governmental units are financed from this fund. Tax Increment District No. 3 Special Revenue Fund The 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. Infrastructure Construction Capital Project Fund This fund was established to account for the resources and expenditures required for the acquisition and construction of capital facilities or improvements financed wholly or in part by special assessments levied against benefited properties. The government reports the following major enterprise funds: Municipal Liquor Fund The fund accounts for the operations of the City’s municipal off-sale liquor stores. Golf Course Fund The fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf course owned by the City. Earle Brown Heritage Center Fund 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. Water Utility Fund The fund accounts for pumping, treatment and distribution of water to customers. Administration, wells, water storage, and distribution are included. Sanitary Sewer Utility Fund The 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 62% of this fund’s operating expenses. Storm Drainage Utility Fund The 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. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Street Light Utility Fund The fund accounts for the electrical service, maintenance, repair and replacement of lights owned by the City as well as those lights owned by Xcel Energy. Recycling Utility Fund The fund accounts for the contracted services to provide a City wide recycling program. Additionally, the City reports the following fund type: Internal Service Funds Account for compensated absences, health care insurance benefits for retired employees, 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. program revenues Amounts reported as 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. operatingnon-operatingd Proprietary funds distinguish revenues and expenses from items. Operating revenues an 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. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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. 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 “due to/from other funds.” All short-term interfund receivables and payables at December 31, 2013 are planned to be eliminated in 2014. 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 utilities, 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 a deferred inflow of resources in the fund financial statements. Delinquent taxes receivable includes the past six years of uncollected taxes. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivables upon certification to the County. Governmental special assessments have been offset by a deferred inflow of resources for collections not received within 60 days after year end 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, 2013 management has reviewed the cost value reported for these assets and has indicated the properties are fairly presented for financial reporting purposes. 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 City 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 Improvements25,000 Heavy Equipment 25,000 Furniture and furnishings 10,000 Motorized vehicles10,000 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. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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, 2013 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 - temporary5years Land improvements25years Buildings and structures25years Water and sewer mains and lines, wells and storage tanks, sewer lift stations25years Infrastructure25years Street and traffic light systems15years Machinery and equipment5 - 15years I. DEFERRED INFLOWS OF RESOURCES In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises under a modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from sources such as: property taxes, tax increments, special assessments and other receivables not collected within 60 days of year-end. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. J. 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 internal service fund. 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. K. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Under Minnesota Statute 471.61, subdivision 2(b), public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan; 2) coverage must continue in group plan until age 65 and pay no more than the group premium; and 3) retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement 45, at January 1, 2012. The liability is accrued in the Public Employees Retirement internal service fund. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 L. 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. M. 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: onspendable N – consists of amounts that are not in spendable form or are required to be maintained intact. estricted R – consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. 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. 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, 2013 the unassigned fund balance of the General fund was 52% of the subsequent year’s budgeted expenditures. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Net Position – Net position represents the difference between assets and liabilities. Net position, net investmen t 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. N. 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. O. 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. P. 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. Accounting and Financial Reporting for Pensions Statement No. 68, . 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. Q. CHANGE IN ACCOUNTING PRINCIPLES tems Previously During the year ended December 31, 2013, the City implemented GASB Statement No. 65, I Reported as Assets and Liabilities. Statement No. 65 identified specific items previously reported as assets that will now be classified as either deferred outflows of resources or outflows (expenditures/expenses), and items previously reported as liabilities that will now be reported as either deferred inflows of resources of inflows (revenues). The implementation of Statement No. 65 did not result in any restatements to prior issued financial statements of the City. The changes for the City are the reclassification of: property taxes, special assessments, assets held for resale, and other long-term receivables, which will not be received within 60 days after year-end. In prior issued financial statements, those balances were classified as deferred revenue. In the 2013 financial statements, these same balances are classified as deferred inflows of resources. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Note 2 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 or amendments during the year. For the year ended December 31, 2013 expenditures exceeded appropriations in the following General Fund departments and other governmental funds: FinalExcess of BudgetActualAppropriations Major Funds: General Fund: Mayor and council$ 132,883132,819$ (64)$ Administrative755,173 777,350 (22,177) Legal393,470 401,222 (7,752) s 900,802764,248 (136,554) Government building Street department1,567,862 1,591,910 (24,048) r 536,439528,856 (7,583) Community cente Convention bureau 418,595384,037 (34,558) Nondepartmental299,470 400,835 (101,365) CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 FinalExcess of BudgetActualAppropriations Major Funds: Special Revenue Funds: Tax Increment District No. 31,966,107 7,353,520 (5,387,413) Nonmajor Funds: Special Revenue Funds: Housing and Redevelopment Authority246,160 248,828 (2,668) Economic Development Authority 780,331439,109 (341,222) Community Development Block Grant211,641 1,422,362 (1,210,721) City Initiatives Grant 238,317121,236 (117,081) Debt Service Funds: G.O. Improvement, 2003A108,600 1,072,560 (963,960) G.O. Refunding, 2004A713,225 1,877,996 (1,164,771) G.O. Improvement, 2008B310,008 310,583 (575) Capital Project Funds: Capital Improvements 152,52678,000 (74,526) B. DEFICIT FUND EQUITY Deficit fund equity exists at December 31, 2013 in the following funds: Unassigned deficit fund balance Nonmajor Funds: Tax Increment District No. 51,432,495$ Unrestricted deficit net position Major Funds: Golf Course880,186 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 3 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 $59,393 composed of bank balances of $0. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 As of December 31, 2013 the City had the following investments and maturities: Investment Maturities (in years) Investment TypeFair ValueNo maturity< 11 - 56 - 10 Negotiable certificates of deposit$2,207,818$ 981,835-$$1,225,983$- Federal agency notes10,797,984- 10,302,388- 495,596 External investment pool - 4M Fund37,145,099 37,145,099 - - - Money market2,461,455 2,461,455 - - - Total Investments52,612,356$ 39,606,554$ 981,835$ 11,528,371$ 495,596$ As of December 31, 2013, the City had the following summary of investments related to the credit risk, par values and fair values of securities: % of total Investment TypeCredit RiskParFair ValuePortfolio Negotiable certificates of depositn/a2,205,000$ 2,207,818$ 4.20% Federal agency notesAAA11,000,000 10,797,984 20.52% External investment pool - 4M Fundn/a37,145,099 37,145,099 70.60% Money marketAAA2,461,426 2,461,455 4.68% Total Investments52,811,525$ 52,612,356$ 100.00% The deposits and investments of the City are presented in the financial statements as follows: Investments52,612,356$ Deposits59,393 Petty cash and change funds13,485 Total cash, cash equivalents, and investments52,685,234$ Reconciliation to the Statement of Net Position: Cash, cash equivalents, and investments52,564,734$ Restricted cash and investments120,500 Total cash, cash equivalents, and investments52,685,234$ 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, 2013 the City’s investment in FHLMC, FNMA and FFCB federal agency 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. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 k – The City’s investment policy requires that the investment portfolio be diversified to Concentration of credit ris minimize potential losses on individual securities. As of year end, the City had portfolio concentrations in excess of five percent (excluding external investment pools) in the following federal agencies: Federal Home Loan Mortgage Corporation (9.35%) and Federal National Mortgage Association (10.23%). 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. 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, 2013 the total of these deposits was $ 120,500. C. RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2013 are as follows: DelinquentDelinquent propertytaxSpecialMunicipalNotes taxesincrementsassessmentsstate aidreceivable Major Funds: General114,647$ -$ 144,922$ -$ -$ Tax Increment District No. 3- 69,476 - - - n -- 2,724,809 - - Infrastructure Constructio Nonmajor Funds Housing and Redevelopment Authority2,537 - - - - Tax Increment District No. 5- - - - 1,150,000 C -- 32,238 - - G.O. Improvement, 2004 G.O. Improvement, 2006A -- 242,230 - - G.O. Improvement, 2008B- - 815,904 - - Capital Improvements10,276 - 4,065 - - Municipal State Aid for Construction- - - 1,903,519 - Total127,460$ 69,476$ 3,964,168$ 1,903,519$ 1,150,000$ CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 D. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2013 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental activities: Capital assets, not being depreciated: Land3,537,473$ -$ -$ 3,537,473$ Easements - perpetual88,704 - - 88,704 Construction in progress186,765 3,284,575 (95,385) 3,375,955 Total capital assets, not being depreciated3,812,942 3,284,575 (95,385) 7,002,132 Capital assets, being depreciated: Easements - temporary22,715 - - 22,715 Buildings and improvements19,566,900 - - 19,566,900 Park improvements10,221,149 120,785 - 10,341,934 Machinery and equipment8,785,838 882,846 (597,329) 9,071,355 Streets39,354,407 - - 39,354,407 Total capital assets, being depreciated77,951,009(597,329)78,357,311 1 ,003,631 Less accumulated depreciation for: Easements - temporary7,2114,538 11,749- Buildings and improvements10,520,257671,590 11,191,847- Park improvements3,967,731286,507 4,254,238- Machinery and equipment4,916,623736,887(514,005)5,139,505 Streets14,203,4001,357,501 15,560,901- Total accumulated depreciation33,615,222(514,005)36,158,240 3 ,057,023 Total capital assets being depreciated - net44,335,787(2,053,392) 42,199,071(83,324) t$ 1,231,18348,148,729$ (178,709)$ 49,201,203$ Governmental activities capital assets - ne Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government85,636$ Public safety398,158 Public works1,645,817 Parks and recreation234,357 Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets693,055 Total depreciation expense - governmental activities$3,057,023 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 BeginningEnding BalanceIncreasesDecreasesBalance Business-type activities: Capital assets, not being depreciated: Land3,194,983$ -$ -$ 3,194,983$ Easements - perpetual10,285 - - 10,285 Construction in progress57,956 2,981,675 (246,073) 2,793,558 Total capital assets, not being depreciated3,263,224 2,981,675 (246,073) 5,998,826 Capital assets, being depreciated: Easements - temporary20,335 - - 20,335 Land improvements393,467 49,424 - 442,891 Buildings and improvements18,697,504 60,096 - 18,757,600 Machinery and equipment913,799 94,377 - 1,008,176 Street light systems425,860 246,073 - 671,933 Mains and lines64,420,651 - - 64,420,651 Total capital assets, being depreciated84,871,616 85,321,586- 4 49,970 Less accumulated depreciation for: Easements - temporary6,4554,063 10,518- Land improvements214,87414,819 229,693- Buildings and improvements13,949,752797,373 14,747,125- Machinery and equipment599,60959,559 659,168- Street light systems67,95228,371 96,323- Mains and lines30,889,9882,221,109 33,111,097- Total accumulated depreciation45,728,630 48,853,924- 3 ,125,294 Total capital assets being depreciated - net39,142,986(2,675,324) 36,467,662- Business-type activities capital assets - net$ 306,35142,406,210$$(246,073)$42,466,488 Depreciation expense was charged to functions/programs of the City as follows: Business-type activities: Municipal liquor$28,469 Golf course10,787 Earle Brown Heritage Center672,394 Water utility639,585 Sanitary sewer utility710,927 Storm drainage utility1,034,761 Street light utility28,371 Total depreciation expense - business-type activities3,125,294$ CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 CONSTRUCTION COMMITMENTS At December 31, 2013 the City had construction project contracts in progress. The commitments related to remaining contract balances are summarized as follows: ContractRemaining ProjectResponsible FundAmountCommitment Kylawn Park Area Street ImprovementsInfrastructure Construction2,622,069$ 67,933$ Kylawn Park Area Sewer UtilitiesSanitary Sewer Utility1,127,221 37,667 Kylawn Park Area Storm Water UtilitiesStorm Drainage Utility1,136,344 279,460 Total Funds$ 385,0602,622,069$ E. INTERFUND BALANCES AND TRANSFERS The composition of due to/from other fund balances at December 31, 2013 are as follows: Due fromDue to FundOther FundsOther Funds Major Funds: General80,794$ -$ Golf Course- 76,813 Nonmajor Funds: Tax Increment District No. 5- 3,981 Total80,794$ 80,794$ Interfund due to/from balances 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. Individual fund advances to and advances from other funds at December 31, 2013 are as follows: Advances to Advances From FundOther FundsOther Funds Major Funds: Golf Course-$ 792,488$ Nonmajor Funds: Tax Increment District No. 22,427,721 - Tax Increment District No. 5- 2,427,721 Capital Improvements792,488 - $ 3,220,2093,220,209$ The $ 2,427,721 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, 2013. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 The composition of interfund transfers as of December 31, 2013 are as follows: Transfer InTransfer Out Governmental Funds: Major Funds: General149,382$ 113,031$ Tax Increment District No. 34,166 1,964,963 Nonmajor Funds: Housing and Redevelopment Authority- 248,828 y -248,828 Economic Development Authorit Community Development Block Grant- 149,382 City Initiatives Grant -72,452 G.O. Improvement, 2003A- 959,397 G.O. Refunding, 2004A- 1,163,271 G.O. Tax Increment, 2008A160,269 - G.O. Tax Increment, 2004D1,804,694 - Capital Improvements 60,5672,322,668 y 1,02098,000 Technolog Total governmental funds4,860,459 4,660,459 Proprietary Funds: Major Funds: Municipal Liquor- 200,000 Total all funds4,860,459$ 4,860,459$ 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 2013, 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 - $149,382. •The annual transfer from the HRA fund to the EDA Fund - $248,828. •The transfer of funds from the General Fund to the TIF #3 Fund was to reimburse 2012 legal expenses - $4,166. •A transfer of NW Cable Commission grant dollars from the General Fund, Capital Improvement & Technology Funds - $72,452. •The transfer of tax increment revenues from TIF #3 to pay for debt service on related projects - $1,964,963. •The transfer and closing of the 2003A and 2004A GO Improvement Bonds Debt Service Funds to the Capital Improvement Fund - $2,122,668. •A transfer from the Liquor Store to the Capital Improvements Fund - $200,000. •The transfer from the General Fund to the Technology fund - $98,000. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 F. OPERATING LEASES 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, 2013 was $ 13,200. Future minimum lease payments under the current agreement is as follows: YearTotal EndingMinimum Rents 201413,200$ 201513,200 20167,700 $34,100 The City leases space for its municipal liquor stores. The leases are ten-year leases and began in 2010 and 2013. 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, 2013 was $ 302,772. Future minimum base rent payments under the current agreements are as follows: YearTotal EndingMinimum Rents 2014224,940$ 2015229,914 2016234,888 2017234,888 2018234,888 2019 - 2023679,092 $1,838,610 The City is the lessor in an operating lease for building and office facilities. The leased space includes multiple tenants, all of which have different lease terms, but include: month-to-month, as well as short and long term lease expiration dates. Two of the tenants do have the option to extend their lease terms by five years, however, the City acquired the respective property during 2013 as part of a redevelopment plan, so the likelihood of the leases being extended are minimal. For the year ended 2013, the City received $15,786 in rental revenue. Future minimum base rent revenues under the current agreements are as follows: YearTotal EndingMinimum Rents 2014279,414$ 2015225,764 2016211,464 2017157,464 2018157,464 $1,031,570 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 G. LONG-TERM DEBT GOVERNMENTAL ACTIVITIES The City issued general obligation improvement bonds to provide funds for the construction of major capital facilities and construction of infrastructure. These bonds are reported in the governmental activities of the City. The City issued general obligation tax increment bonds to finance various redevelopment projects and redevelopment property acquisitions within the City. These bonds are reported in the governmental activities of the City. Final InterestMaturityOriginalPayable RatesDateDateIssue12/31/13 G.O. Tax Increment Bonds: Taxable Tax Increment Bonds of 20044.75 - 5.13%12/01/200402/01/202017,245,000$ 10,805,000$ Taxable Tax Increment Bonds of 20083.00 - 5.30%05/01/200802/01/20184,335,000 625,000 Taxable Tax Increment Bonds of 20132.00 - 3.25%12/19/201302/01/20226,040,000 6,040,000 Total G.O. Tax Increment Bonds27,620,000 17,470,000 G.O. Improvement Bonds: Improvement Bonds, 2004C2.10 - 3.65%12/01/200402/01/20151,010,000 180,000 Improvement Bonds, 2006A3.55 - 3.80%12/15/200602/01/20171,460,000 470,000 Improvement Bonds, 2008B3.25 - 4.25%12/15/200802/01/20192,390,000 1,350,000 Improvement Bonds, 2013B3.00%12/19/201302/01/20244,920,000 4,920,000 Total G.O. Improvement Bonds9,780,000 6,920,000 Total - bonded indebtedness37,400,000$ 24,390,000 Other Liabilities: Compensated absences payable1,232,551 Net OPEB obligation586,026 Total governmental activities$26,208,577 All long-term bonded indebtedness outstanding at December 31, 2013 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 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. At the end of the current fiscal year, there are $2,281,769 of assets accumulated in the debt service funds for future debt service. Included within those accumulated assets, there are $22,512 of delinquent special assessments receivable. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Annual debt service requirements to maturity for governmental activities long-term debt are as follows: Governmental Activities Year Ending G.O. Tax Increment BondsG.O. Improvement Bonds December 31PrincipalInterestPrincipalInterest 2014$ 642,4451,430,000$ 475,000$ 160,446$ 2015 638,8311,755,000 1,270,000 187,220 2016 560,2381,835,000 885,000 151,210 2017 475,4251,930,000 820,000 122,480 2018 383,3502,005,000 750,000 96,173 2019 - 2023 612,5818,515,000 2,505,000 192,625 2024 -- 215,000 3,225 Total$ 3,312,87017,470,000$ 6,920,000$ 913,379$ BUSINESS-TYPE ACTIVITIES The City issued general obligation revenue bonds to finance the metering of all City connected water and sewer utility services. These bonds are reported in the business-type activities of the City. Final InterestMaturityOriginalPayable RatesDateDateIssue12/31/13 General Obligation Taxable Utility Revenue Bonds (Build America Bonds - Direct Pay)0.70 - 5.10%03/08/201002/01/20252,350,000$ 1,940,000$ 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 2014140,000$ 77,490$ 2015140,000 74,095 2016145,000 70,100 2017150,000 65,375 2018155,000 59,880 2019 - 2023835,000 195,955 2024 - 2025375,000 19,160 Total1,940,000$ 562,055$ 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. For the year ended December 31, 2013, the water and sewer utility funds provided net revenues of $616,226, which accounts for a debt-service coverage ratio of 286.35%. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2013 was as follows: BeginningEndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental activities: Bonds payable: General obligation bonds$700,000$ (700,000)-$$-$- G.O. tax increment bonds12,795,0006,040,000(1,365,000)17,470,0001,430,000 G.O. improvement bonds2,590,0004,920,000(590,000)6,920,000475,000 Total bonds payable 10,960,00016,085,000 (2,655,000) 24,390,000 1,905,000 Compensated absences1,264,220 35,325 (66,994) 1,232,551 123,255 Net OPEB obligation487,353 238,744 (140,071) 586,026 - Total government activity long-term liabilities17,836,573$ 11,234,069$ (2,862,065)$ 26,208,577$ 2,028,255$ Business-type activities: Bonds payable: G.O. revenue bonds$2,075,000$ (135,000)-$$1,940,000$140,000 Compensated absences are liquidated by the Public Employees Compensated Absences internal service fund and the net OPEB obligation by the Public Employees Retirement internal service 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, 2013 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, four Senior Housing Development Revenue Notes, and two Charter School Lease Revenue Bonds outstanding. The aggregate amount of conduit debt at December 31, 2013 is $32,369,738. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 H. FUND EQUITY Net position reported in the government-wide statement of net position at December 31, 2013 include the following: Governmental activities Net investment in capital assets: Cost of capital assets85,359,443$ Less: accumulated depreciation(36,158,240) Less: related long-term debt outstanding(6,920,000) Total net investment in capital assets42,281,203 Restricted: Statutory housing obligations483,913 Tax increment purposes20,470,477 Economic development1,591,668 Public safety57,181 Community amphitheater304,402 Debt service1,987,723 State-Aid street construction2,323,722 d27,219,086 Total restricte Unrestricted11,205,288 Total governmental activities net position$80,705,577 Related debt for governmental activities capital assets includes $6,920,000 in G.O. Improvement Bonds which was the amount issued to finance the street portion of construction projects. Business-type activities Net investment in capital assets: Cost of capital assets91,320,412$ Less: accumulated depreciation(48,853,924) Less: related long-term debt outstanding- Total net investment in capital assets42,466,488 Unrestricted12,208,126 n$54,674,614 Total business-type activities net positio The long-term debt reported in the Water and Sewer utility funds was used to finance capital improvements, however those items individually were small in scope and not capitalized in the financial statements. Therefore there is no long-term debt applied against the calculation above. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 Note 4 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 (WCRA) 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 Statutes, 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 officeres and fire-fighters who qualify for membership by statute are covered by the PEPFF. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 BENEFITS PROVIDED 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 five 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. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (method 1) or a level accrual formula (method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.20 percent of average salary for each of the first 10 years of service and 2.70 percent for each remaining year. The annuity accrual for a Coordinated Plan member is 1.20 percent of average salary for each of the first 10 years, and 1.70 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.70 percent of average salary for Basic Plan members and 1.70 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.00 percent for each year of service. For all members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 55 for PEPFF members, and 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single-life annuity is a lifetime annuity that ceases upon the death of the retiree, of which no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable of joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated public 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 1-800-652-9026. CONTRIBUTIONS 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, 2013, 2012, and 2011 were $521,512, $498,832, and $492,194, respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2013, 2012, and 2011 were $560,053, $544,497, and $522,110, respectively. The City’s contributions were equal to the contractually required contributions for each year as set by state statute Effective January 1, 2014, PEPFF members will be required to contribute 10.20% and the City will be required to contribute 15.30% of the respective employees annual covered salary. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF ASSOCIATION PLAN DESCRIPTION The City contributes to the Brooklyn Center Fire Department Relief Association (the Association) which is the administrator of a single employer, public employee defined benefit retirement system to provide a retirement plan (the Plan) to volunteer firefighters of the City who are members of the Association. The Association is organized and operates under the provisions of Minnesota State Statutes 424A, and provides benefits in accordance with those statutes. The Association provides retirement benefits to members and survivors, upon death of eligible members. Benefits are established by the Association and approved by the City Council under the applicable statutes. The defined retirement benefits are based on a member’s years of service. Vesting begins after the 10th year of service with a 60% benefit increasing to 100% after the 20th year of service. Full benefits are available after 20 years of service by the member and having attained the age of 50. The current benefit available is a lump sum distribution of $7,500 per year of service. Vested, terminated members who are entitled to benefits but are not yet receiving them are bound by the provisions in effect at the time of termination of membership. The Association issues a financial report that includes financial statements and required supplementary information for the Brooklyn Center Fire Department Relief Association. That report is available at the City of Brooklyn Center City offices. FUNDING POLICY The City levies property taxes at the direction of and for the benefit of the Plan and passes through state aids allocated to the Plan, all in accordance with enabling State statutes. The minimum tax levy obligation is the financial contribution requirement for the year less anticipated state aids. CONTRIBUTIONS Total contributions to the plan in 2013 were $135,340, all of which was contributed by the State of Minnesota. The actual contribution was in excess of the contribution determined by an actuarial valuation, which was $101,453. That actuarial valuation was performed at January 1, 2013, and represents funding for normal cost. The information below is the most recent data available. Actuarial valuation date1/1/2013 Actuarial cost methodEntry age normal cost method Amortization methodLevel dollar amount amortized on a closed basis Remaining amortization period8 years Asset valuation methodfair value Actuarial assumptions: Investment rate of return6.0% compounded annually Discount rate for obligations6.00% Projected salary increasesNot applicable Post retirement benefitsNone Inflation rateNot applicable CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 THREE YEAR TREND INFORMATION AnnualPercentageNet YearPensionContributionsof APCPension EndingCost (APC)State-AidCityTotalContributedObligation 12/31/2011$95,119$ 101,1196,000$75%52,199$ $ 134,087 12/31/201295,98255,521151,503144%- 105,363 12/31/2013135,340 135,340-134%- 100,728 SCHEDULE OF FUNDING PROGRESS Assets in Excess of ActuarialActuarialActuarial(Unfunded) ValuationValue ofAccruedAccruedFunded DateAssetsLiabilityLiabilityRatio 01/01/20092,654,832$ 3,240,590$ (585,758)$ 81.9% 01/01/20113,303,595 3,253,686101.5% 4 9,909 01/01/20133,282,3173,279,231100.1% 3 ,086 C. OTHER POST-EMPLOYMENT BENEFITS PLAN DESCRIPTION In addition to providing the pension benefits described in Note 4.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: CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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 by the retiree on a monthly basis. Employees hired after January 1, 1992 The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, they are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. 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. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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, 2013 was calculated as follows: Annual required contribution$246,732 Interest on net OPEB obligation21,931 Adjustment to ARC(29,919) Annual OPEB cost238,744 Employer Contributions Direct118,430 Indirect Implicit Rate Subsidy21,641 Increase (decrease) in net OPEB obligation98,673 Net OPEB obligation, beginning of year487,353 Net OPEB obligation, end of year$586,026 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, 2013. 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 FiscalAnnualAnnual Net YearOPEBEmployerOPEB CostOPEB EndedCostContributionsContributedObligation 12/31/2011256,278$ 210,319$ 82.07%410,810$ 12/31/2012235,918 159,375 67.56%487,353 12/31/2013238,744 140,071 58.67%586,026 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. Instead of depositing funds into an irrevocable trust, the City has chosen to accumulate funding into an internal service fund. The cash and investment balance of the internal service fund is $907,026 for the year ended December 31, 2013. The funded status of the plan was as follows: Unfunded ActuarialActuarialUAAL as a Actuarial ActuarialAccruedAccruedPercentage ValuationValue ofLiabilityLiability FundedCoveredof Covered Date Assets (AAL)(UAAL)RatioPayroll Payroll 1/1/2008 $$ 0.00%8,882,3153,996,136$ 44.99% $ -3,996,136 1/1/2010 0.00%9,143,2763,012,383 32.95% -3,012,383 1/1/2012 0.00%9,472,2372,620,367 27.66% -2,620,367 CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 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, however the City does have $907,026 of funds accumulated in an internal service fund. 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 $5 million of bonds in 2004 and therefore is required to rebate excess investment income relating to these issues to the federal government. The extent of the City’s liability for arbitrage rebates on the remaining bond issues is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. E. LITIGATION The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution of these claims will have a material impact on the City’s financial condition or results of operations. F. CONTINGENT LIABILITIES Tax Increment Notes In May 2002, the City entered into two limited tax increment notes with developers whereby the City will pay the developers a percentage of the available tax increment. Whether payments will occur and the amount of the payments is unpredictable since all payments are dependent on the City receiving tax increment revenues from the developer’s project. As such, this liability has not been recorded in the financial statements. Any potential liability ends with the decertification of the tax increment district. CITY OF BROOKLYN CENTER, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS December 31, 2013 In December 2012, the City entered into a tax increment revenue note with a developer whereby the City will pay the developer the available tax increments as defined in the Tax Increment Development Agreement. Whether payments will occur and the amount of the payments is unpredictable since all payments are dependent on the City receiving tax increment revenues from the developer’s project. As such, this liability has not been recorded in the financial statements. Any potential liability ends with the decertification of the tax increment district. A schedule of the notes outstanding at December 31, 2013 is as follows: Amended or Original12/31/2013InterestMaturity NotePrincipalBalanceRateDate Twin Lakes Business Park2,424,199$ 1,065,961$ 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 2013 financial statements of the City is $ 553,385 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 2013 health and life insurance costs paid by the City was $ 1,221,161. 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 4.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. w;¨Òz©;7 {Ò¦¦Œ;’;“·©äL“Eš©’·zš“ CITY OF BROOKLYN CENTER, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS For the Year Ended December 31, 2013 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 /š’,z“z“mµL“7zÝz7ÒŒ Cғ7{··;’;“·­µ{-w;7Ҍ;­ CITY OF BROOKLYN CENTER, MINNESOTA NONMAJOR SPECIAL REVENUE FUNDS A special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Housing and Redevelopment Authority (HRA) This fund was established to account for housing and redevelopment projects within the City of Brooklyn Center. The HRA has the authority to levy an ad-valorem property tax levy, which is the primary funding source for the expenditures from this fund. Annually, the cash balance at the end of the year is transferred into the EDA fund. Economic Development Authority (EDA) This fund was established to account for the development related activities in the City of Brooklyn Center. The EDA generates the funding to accomplish the development projects from grants, excess funding from the HRA property tax levy, or from transfers from other funds of the City. Community Development Block Grant This fund was established to account for the collection of grant funding for related projects within the City. During the year, the City received grant funding through the Neighborhood Stabilization Program, which is for the acquisition of run-down properties, the improvement of said properties, and then marketing them to the public. Police Drug Forfeiture This fund was established to account for the proceeds from property seized by Police Department personnel. Tax Increment District No. 2 This fund was established to account for the collection of tax increment generated revenues for parcels within the District. These funds are used to finance the various redevelopment activities within the respective District. Tax Increment District No. 4 This fund was established to account for the collection of tax increment generated revenues for parcels within the District. These funds are used to finance the various redevelopment activities within the respective District. Tax Increment District No. 5 This fund was established to account for the collection of tax increment generated revenues for parcels within the District. These funds are used to finance the various redevelopment activities within the respective District. City Initiative Grants Revenues and expenditures from grants received from outside entities are accounted for in the fund. The Police Department receive several federal, state and other local grants, which are accounted for here. Other activities include grant funding for local recreation programs and cable television. Early Retiree Reinsurance Program This fund was established to account for federal reimbursements received for the increase in health insurance premiums paid by the City due to the Statutory requirement that current and retired employees be blended to create one universal rate. This money must be used to reduce future health insurance premiums for current employees. CITY OF BROOKLYN CENTER, MINNESOTA NONMAJOR DEBT SERVICE FUNDS Debt service funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal, interest and other charges related to long-term debt. General Obligation Improvement Bonds, 2003A This fund was established to accumulate collections of special assessments which were levied on the property owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond was paid off during 2013, with the remaining funds being transferred to the Capital Improvements fund to assist in financing future capital improvements within the City. General Obligation Improvement Bonds, 2004C This fund was established to accumulate collections of special assessments which were levied on the property owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond has a final maturity date of February 1, 2015. General Obligation Refunding Bonds, 2004A This fund was established to accumulate the collection of property taxes levied upon the citizens of Brooklyn Center. The bond was issued to refund a previously issued bond, of which the original proceeds were used to finance the police and fire buildings. This bond was paid off during 2013, with the remaining funds being transferred to the Capital Improvements fund to assist in financing future capital improvements within the City. General Obligation Improvement Bonds, 2006A This fund was established to accumulate collections of special assessments which were levied on the property owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond has a final maturity date of February 1, 2017. General Obligation Improvement Bonds, 2008B This fund was established to accumulate collections of special assessments which were levied on the property owners who benefited from the improvements that were constructed with the proceeds of this bond. This bond has a final maturity date of February 1, 2019. Tax Increment Bonds, 2008A This fund was established to account for the collection of tax-increment generated revenues, which are annually transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects within the City. This bond has a final maturity date of February 1, 2018. Tax Increment Bonds, 2004D This fund was established to account for the collection of tax-increment generated revenues, which are annually transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects within the City. This bond has a final maturity date of February 1, 2020. CITY OF BROOKLYN CENTER, MINNESOTA NONMAJOR CAPITAL PROJECTS FUNDS Capital projects fund are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital Improvements This fund was established to provide funds and to account for the expenditure of such funds, for major capital outlays. The accumulation of funds to provide for such outlays is an attempt to reduce future debt issuance. The financing sources of the fund include primarily consist of transfers from other funds. Municipal State-Aid for Construction This fund was established to account for the state allotment of construction and maintenance aid. The source of the State funding is provided for through the collection of gasoline taxes. The funds accumulated must be used on transportation related construction and maintenance projects. Capital Reserve Emergency This fund was established to account for monies held in reserve for catastrophic losses or unforeseen capital items. Street Reconstruction This fund was established to provide funds and to account for the expenditure of such funds, for major street infrastructure improvements. The accumulation of funds to provide for such improvements is an attempt to reduce future debt issuance. The primary financing source for such improvements are franchise fees. Technology This fund was established to provide funds and to account for the expenditure of such funds, for technological improvements/renovations. CITY OF BROOKLYN CENTER, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2013 Total SpecialDebtCapitalNonmajor RevenueServiceProjectGovernmental ASSETS Cash and investments2,533,185$ 1,182,736$ 6,034,780$ 9,750,701$ Receivables: Accounts - net- - 179,098 179,098 Current taxes1,892 - 8,200 10,092 Delinquent taxes2,537 - 10,276 12,813 Special assessments- 1,099,033 5,625 1,104,658 Due from other governments275,562 - 3,503,847 3,779,409 Notes receivable1,150,000 - - 1,150,000 Advances to other funds2,427,721 - 792,488 3,220,209 Assets held for resale537,000 - - 537,000 Total assets6,927,897 2,281,769 10,534,314 19,743,980 LIABILITIES Accounts payable 360,482 425 5,257 366,164 Accrued salaries and wages 24,315 - - 24,315 Due to other funds 3,981 - - 3,981 Due to other governments 2,556 - 30,733 33,289 Deposits payable 28,359 - - 28,359 Advances from other funds 2,427,721 - 2,427,721- Total liabilities 2,847,414 425 35,990 2,883,829 S DEFERRED INFLOWS OF RESOURCE Unavailable revenue - property taxes 2,537 - 10,276 12,813 Unavailable revenue - special assessments 1,090,372- 4,065 1,094,437 Unavailable revenue - notes receivable 150,000 - 150,000- Unavailable revenue - intergovernmental - 1,903,519- 1,903,519 Unavailable revenue - assets held for resale 537,000 - 537,000- Total deferred inflows of resources 689,537 1,090,372 1,917,860 3,697,769 S FUND BALANCE Restricted Tax increment financing 3,056,923 - 3,056,923- Economic development 1,052,131 - 1,052,131- Public safety 57,181 - - 57,181 Community amphitheater 304,402 - 304,402- Debt service 1,190,972- 1,190,972- State-Aid street construction - 2,323,722- 2,323,722 Committed Public safety 90,265 - - 90,265 Cable communications 223,075 - 223,075- Community recreation 39,464 - - 39,464 Capital improvements - 3,072,758- 3,072,758 Emergency capital improvements - 1,456,459- 1,456,459 Street improvements - 1,689,737- 1,689,737 Technology improvements - - 37,788 37,788 Unassigned (1,432,495) - (1,432,495)- Total fund balances 3,390,946 1,190,972 8,580,464 13,162,382 Total liabilities, deferred inflows of resources and fund balances$6,927,897$2,281,769$ 10,534,314$19,743,980 The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2013 Total SpecialDebtCapitalNonmajor RevenueServiceProjectGovernmental S REVENUE Property taxes$ 247,256$ 703,019$ 8,199$ 958,474 Tax increments 383,373 - 383,373- Franchise fees - 651,832- 651,832 Intergovernmental 1,999,968 - 73,441 2,073,409 Charges for services 9,306 - - 9,306 Special assessments 485,034- 1,560 486,594 Fines and forfeits 28,351 - - 28,351 Investment earnings (net of market value adjustment) (3,720) (6,223) (2,373) (12,316) Miscellaneous 258,271 - 258,271- Total revenues 2,922,805 1,181,830 732,659 4,837,294 S EXPENDITURE Current: General government77,682 - 68,710 146,392 Public safety185,899 - - 185,899 Public works- - 88,884 88,884 Parks and recreation69,971 - - 69,971 Economic development2,407,271 - - 2,407,271 Capital outlay: General government- - 18,311 18,311 Parks and recreation- - 91,959 91,959 Economic development36,327 - - 36,327 Debt service: Principal- 2,655,000 - 2,655,000 Interest- 698,702 - 698,702 Fiscal agent fees- 15,686 - 15,686 Total expenditures2,777,150 3,369,388 267,864 6,414,402 Excess (deficiency) of revenues over (under) expenditures 145,655 (2,187,558) 464,795 (1,577,108) ) OTHER FINANCING SOURCES (USES Transfers in 321,280 1,964,963 2,420,668 4,706,911 Transfers out (398,210) (2,122,668) (61,587) (2,582,465) Total other financing sources (uses) (76,930) (157,705) 2,359,081 2,124,446 Net change in fund balance 68,725 (2,345,263) 2,823,876 547,338 Fund balances - January 1 3,322,221 3,536,235 5,756,588 12,615,044 Fund balances - December 31$3,390,946$1,190,972$ 8,580,464$13,162,382 The notes to the financial statements are an integral part of this statement. CITY OF BROOKLYN CENTER, MINNESOTA COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2013 Housing andEconomicCommunityPolice RedevelopmentDevelopmentDevelopmentDrug AuthorityAuthorityBlock GrantForfeiture ASSETS Cash and investments-$ 1,087,298$ 108,670$ 71,793$ Receivables: Current taxes1,892 - - - Delinquent taxes2,537 - - - Due from other governments- - 223,429 - Notes receivable- - - - Advances to other funds- - - - Assets held for resale- 537,000 - - Total assets4,429 1,624,298 332,099 71,793 LIABILITIES Accounts payable - 10,215 332,099 1,253 Accrued salaries and wages - 11,844 - - Due to other funds - - - - Due to other governments - - - - Deposits payable - 15,000 - 13,359 Advances from other funds - -- - Total liabilities- 37,059 332,099 14,612 S DEFERRED INFLOWS OF RESOURCE Unavailable revenue - property taxes 2,537 - - - Unavailable revenue - notes receivable - - - - Unavailable revenue - assets held for resale 537,000- - - Total deferred inflows of resources 2,537 537,000 - - S FUND BALANCE Restricted Tax increment financing - -- - Economic development1,892 1,050,239 - - Public safety- - - 57,181 Community amphitheater- - - - Committed Public safety -- - - Cable communications- - - - Community recreation- - - - Unassigned- - - - Total fund balances1,892 1,050,239 - 57,181 Total liabilities, deferred inflows of resources and fund balances4,429$ 1,624,298$ 332,099$ 71,793$ Total TaxTaxTaxCityEarly RetireeNonmajor IncrementIncrementIncrementInitiativeReinsuranceSpecial District No. 2District No. 4District No. 5GrantsProgramRevenue $ 223,494407,195$ -$ 634,735$ -$ 2,533,185$ -- - - - 1,892 -- - - - 2,537 -- - 52,133 - 275,562 -- 1,150,000 - - 1,150,000 -2,427,721 - - - 2,427,721 -- - - - 537,000 223,4942,834,916 1,150,000 686,868 - 6,927,897 -- - 16,915 - 360,482 -- - 12,471 - 24,315 -- 3,981 - - 3,981 1,487- 793 276 - 2,556 -- - - - 28,359 -- 2,427,721 - - 2,427,721 - 1,4872,432,495 29,662 2,847,414- - - - - - 2,537 - 150,000- - 150,000- - - - - 537,000- - 150,000- - 689,537- 2,834,916 222,007 - - 3,056,923- - - - - 1,052,131- - - - - - 57,181 - - 304,402- 304,402- - - - 90,265 90,265 - - 223,075- 223,075- - - - 39,464 - 39,464 - (1,432,495)- - (1,432,495)- 2,834,916 222,007 (1,432,495) 657,206 3,390,946- $ 2,834,916$ 223,494$ 1,150,000$686,868$-$6,927,897 CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For the Year Ended December 31, 2013 Housing andEconomicCommunityPolice RedevelopmentDevelopmentDevelopmentDrug AuthorityAuthorityBlock GrantForfeiture REVENUES Property taxes247,256$ -$ -$ -$ Tax increments- - - - Intergovernmental- 344,562 1,422,362 - Charges for services- - - - Fines and forfeits- - - 28,351 Investment earnings (net of market value adjustment)- (2,319) - (153) Miscellaneous- 5,820 - - Total revenues247,256 348,063 1,422,362 28,198 EXPENDITURES Current: General government- - - - Public safety- - - 17,553 Parks and recreation- - - - Economic development- 780,331 1,272,980 - Capital outlay: Economic development- - - - Total expenditures- 780,331 1,272,980 17,553 Excess (deficiency) of revenues over (under) expenditures247,256 (432,268) 149,382 10,645 OTHER FINANCING SOURCES (USES) Transfers in- 248,828 - - Transfers out(248,828) - (149,382) - Total other financing sources (uses)(248,828) 248,828 (149,382) - Net change in fund balance(1,572)(183,440)-10,645 Fund balances (deficits) - January 13,4641,233,679-46,536 Fund balances (deficits) - December 31$1,892$1,050,239$-$57,181 Total TaxTaxTaxCityEarly RetireeNonmajor IncrementIncrementIncrementInitiativeReinsuranceSpecial District No. 2District No. 4District No. 5GrantsProgramRevenue $ --$ -$ -$ -$ 247,256$ 382,924- 449 - - 383,373 -- - 233,044 - 1,999,968 -- - 9,306 - 9,306 -- - - - 28,351 (609)(586) - (196) 143 (3,720) -27,721 - 224,730 - 258,271 382,31527,135 449 466,884 143 2,922,805 -- - - 77,682 77,682 -- - 168,346 - 185,899 -- - 69,971 - 69,971 331,0209,201 13,739 - - 2,407,271 -36,327 - - - 36,327 331,02045,528 13,739 238,317 77,682 2,777,150 (18,393)51,295(13,290)228,567(77,539)145,655 ---72,452-321,280 ---- (398,210)- -- - 72,452 - (76,930) 51,295(18,393) (13,290) 301,019 (77,539) 68,725 170,7122,853,309 (1,419,205) 356,187 77,539 3,322,221 $ 222,0072,834,916$ (1,432,495)$ 657,206$ -$ 3,390,946$ CITY OF BROOKLYN CENTER, MINNESOTA COMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2013 GeneralGeneralGeneral ObligationObligationObligation ImprovementImprovementRefunding BondsBondsBonds 2003A2004C2004A ASSETS Cash and investments-$ 152,528$ -$ Receivables: Special assessments- 33,041 - Total assets- 185,569 - LIABILITIES Accounts payable- - - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - special assessments- 32,238 - FUND BALANCES Restricted for debt service- 153,331 - Total liabilities, deferred inflows of resources and fund balances-$ 185,569$ -$ GeneralGeneral ObligationObligationTaxTaxTotal ImprovementImprovementIncrementIncrementNonmajor BondsBondsBondsBondsDebt 2006A2008B2008A2004DService $ 327,792$ 702,416$ -$ 1,182,736-$ 247,210 818,782 - 1,099,033- 575,002 1,521,198- 2,281,769- - 425 - - 425 242,230 815,904 - 1,090,372- 332,772 704,869 - 1,190,972- $ 575,002$ 1,521,198$-$ 2,281,769-$ CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUNDS For the Year Ended December 31, 2013 GeneralGeneralGeneral ObligationObligationObligation ImprovementImprovementRefunding BondsBondsBonds 2003A2004C2004A REVENUES Property taxes-$ -$ 703,019$ Special assessments8,279 52,901 - Investment earnings (net of market value adjustment)(1,423) (284) (2,551) Total revenues6,856 52,617 700,468 EXPENDITURES Debt service: Principal105,000 95,000 700,000 Interest2,100 8,209 11,725 Fiscal agent fees6,063 1,278 3,000 Total expenditures113,163 104,487 714,725 Excess (deficiency) of revenues over (under) expenditures(106,307) (51,870) (14,257) OTHER FINANCING SOURCES (USES) Transfers in- - - Transfers out(959,397) - (1,163,271) Total other financing sources (uses)(959,397) - (1,163,271) Net change in fund balances(1,065,704) (51,870) (1,177,528) Fund balances - January 11,065,704 205,201 1,177,528 Fund balances - December 31-$ 153,331$ -$ GeneralGeneral ObligationObligationTaxTaxTotal ImprovementImprovementIncrementIncrementNonmajor BondsBondsBondsBondsDebt 2006A2008B2008A2004DService $ -$ -$ -$ 703,019-$ 126,791 297,063 - 485,034- (619) (1,346) - - (6,223) 126,172 295,717 - 1,181,830- 140,000 250,000 125,000 1,240,000 2,655,000 20,053 58,508 34,344 563,763 698,702 1,414 2,075 925 931 15,686 161,467 310,583 160,269 1,804,694 3,369,388 (35,295) (14,866) (160,269) (1,804,694) (2,187,558) - 160,269- 1,804,694 1,964,963 - - - (2,122,668)- - 160,269- 1,804,694 (157,705) (35,295) (14,866) - (2,345,263)- 368,067 719,735 - 3,536,235- $ 332,772$ 704,869$-$ 1,190,972-$ CITY OF BROOKLYN CENTER, MINNESOTA COMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2013 MunicipalTotal State AidCapitalNonmajor CapitalforReserveStreetCapital ImprovementsConstructionEmergencyReconstructionTechnologyProjects ASSETS Cash and investments$ 2,270,510$ 728,651$ 1,456,459$ 1,525,625$ 53,535$ 6,034,780 Receivables: Accounts - net - - - 164,112 14,986 179,098 Current taxes 8,200 - - - - 8,200 Delinquent taxes 10,276 - - - - 10,276 Special assessments 5,625 - - - - 5,625 Due from other governments - 3,503,847 - - - 3,503,847 Advances to other funds 792,488 - - - - 792,488 Total assets 3,087,0994,232,4981,456,4591,689,737 68,521 10,534,314 LIABILITIES Accounts payable - 5,257 - - - 5,257 Due to other governments - - - - 30,733 30,733 Total liabilities - 5,257 - - 30,733 35,990 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 10,276 - - - - 10,276 Unavailable revenue - special assessments 4,065 - - - - 4,065 - - - 1,903,519 Unavailable revenue - intergovernmental-1,903,519 Total deferred inflows of resources 14,341 1,903,519 - - - 1,917,860 FUND BALANCES Restricted State-Aid street construction - 2,323,722 - - - 2,323,722 Committed Capital improvements 3,072,758 - - - - 3,072,758 Emergency capital improvements - - 1,456,459 - - 1,456,459 Street improvements - - - 1,689,737 - 1,689,737 Technology improvements - - - - 37,788 37,788 Total fund balances 3,072,758 2,323,722 1,456,459 1,689,737 37,788 8,580,464 Total liabilities, deferred inflows of resources and fund balance$ 3,087,099$4,232,498$1,456,459$1,689,737$ 68,521$ 10,534,314 s 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, 2013 MunicipalTotal State AidCapitalNonmajor CapitalforReserveStreetCapital ImprovementsConstructionEmergencyReconstructionTechnologyProjects REVENUES Property taxes8,199$ -$ -$ -$ -$ 8,199$ Franchise fees- - - 651,832 - 651,832 Intergovernmental- 73,441 - - - 73,441 Special assessments1,560 - - - - 1,560 Investment earnings (net of market value adjustment)71 (1,027) (2,165) 717 31 (2,373) Total revenues9,830 72,414 (2,165) 652,549 31 732,659 EXPENDITURES Current: General government- - - - 68,710 68,710 Public works- 88,884 - - - 88,884 Capital outlay: General government- - - - 18,311 18,311 Parks and recreation91,959 - - - - 91,959 Total expenditures91,959 88,884 - - 87,021 267,864 Excess (deficiency) of revenues over (under) expenditures(82,129) (16,470) (2,165) 652,549 (86,990) 464,795 OTHER FINANCING SOURCES (USES) Transfers in2,322,668 - - - 98,000 2,420,668 - - - (1,020) (61,587) Transfers out(60,567) Total other financing sources (uses) 2,262,101 - - - 96,980 2,359,081 Net change in fund balance 2,179,972 (16,470) (2,165) 652,549 9,990 2,823,876 Fund balances - January 1 892,786 2,340,192 1,458,624 1,037,188 27,798 5,756,588 Fund balances - December 31$ 3,072,758$2,323,722$1,456,459$1,689,737$ 37,788$8,580,464 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND Page 1 of 5 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) REVENUES Taxes: Property taxes13,552,262$ 13,552,262$ 14,102,032$ 549,770$ Market value homestead credit- - 15 15 Penalties and interest38,420 38,420 33,943 (4,477) Lodging tax825,000 825,000 881,252 56,252 Total taxes14,415,682 14,415,682 15,017,242 601,560 Special assessments- - 160,755 160,755 Licenses and permits: Liquor and beer licenses72,100 72,100 75,217 3,117 Building permits200,000 200,000 521,965 321,965 Mechanical permits45,000 45,000 63,204 18,204 Sewer and water permits1,500 1,500 1,460 (40) Plumbing permits34,000 34,000 51,106 17,106 Garbage licenses3,150 3,150 3,485 335 Mechanical licenses7,500 7,500 9,040 1,540 Service station licenses2,500 2,500 2,500 - Vehicle dealer licenses1,500 1,500 1,500 - Bowling licenses720 720 720 - Cigarette licenses3,600 3,600 3,315 (285) Sign permits5,731 5,731 6,105 374 Rental dwelling licenses213,272 213,272 254,948 41,676 Amusement licenses785 785 725 (60) 45,00045,000 Electrical Permits 78,384 33,384 ROW permits - - 5,015 5,015 Miscellaneous licenses and permits 4,850 4,850 5,314 464 Total licenses and permits 641,208 641,208 1,084,003 442,795 Intergovernmental: Federal: Other federal grants 150,000 150,000 43,370 (106,630) State: Local government aid 411,378 411,378 411,378 - Local performance aid - - 4,280 4,280 Police pension aid 292,000 292,000 342,619 50,619 PERA aid 34,365 34,365 34,365 - Fireperson pension aid 98,752 98,752 135,340 36,588 Police training - - 15,379 15,379 Other state grants - - 15,760 15,760 Local: Miscellaneous grants 70,755 70,755 83,671 12,916 Total intergovernmental 1,057,250 1,057,250 1,086,162 28,912 Charges for services: General government charges 190,500 190,500 280,662 90,162 Public safety charges 58,100 58,100 60,627 2,527 Community development fees 15,000 15,000 7,772 (7,228) Recreation fees 271,374 271,374 259,012 (12,362) Community Center fees 378,600 378,600 382,050 3,450 913,574990,123 76,549 Total charges for services913,574 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND Page 2 of 5 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Revenues (continued): Fines and forfeits365,000$ 365,000$ 287,631$ (77,369)$ Miscellaneous: Investment earnings (net of market value change)32,000 32,000 (25,757) (57,757) Other104,275 104,275 165,551 61,276 Total miscellaneous136,275 136,275 139,794 3,519 Total revenues 17,528,989 17,528,989 18,765,710 1,236,721 EXPENDITURES General government: Mayor and council: Current: Personal services50,419 50,419 50,314 105 Supplies200 200 273 (73) Services and other charges82,200 82,200 82,296 (96) Total mayor and council132,819 132,819 132,883 (64) Administrative (Manager, Clerk, HR) offices: Current: Personal services691,432 691,432 724,996 (33,564) Supplies2,700 2,700 2,509 191 Services and other charges61,041 61,041 49,845 11,196 Total administrative office755,173 755,173 777,350 (22,177) Elections and voter registration: Current: Personal services68,626 68,626 68,751 (125) Supplies2,408 2,408 1,940 468 Services and other charges15,400 15,400 1,422 13,978 Total elections and voter registration86,434 86,434 72,113 14,321 Finance: Current: Personal services478,649 478,649 406,900 71,749 Supplies4,612 4,612 5,083 (471) Services and other charges34,335 34,335 30,576 3,759 Total finance517,596 517,596 442,559 75,037 Assessor's office: Current: Personal services297,597 297,597 257,660 39,937 Supplies3,888 3,888 4,842 (954) Services and other charges81,88681,88662,621 19,265 Total assessor's office 383,371 383,371 325,123 58,248 Legal: Current: Services and other charges 393,470 393,470 401,222 (7,752) CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND Page 3 of 5 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Expenditures (continued): General government (continued): Government buildings: Current: Personal services261,368$ 261,368$ 257,853$ 3,515$ Supplies69,900 69,900 57,628 12,272 Services and other charges408,980 408,980 585,321 (176,341) Total current740,248 740,248 900,802 (160,554) Capital outlay24,000 24,000 - 24,000 Total government buildings764,248 764,248 900,802 (136,554) Information technology: Current: Personal services220,474 220,474 219,278 1,196 Supplies5,500 5,500 3,591 1,909 Services and other charges218,421 218,421 206,185 12,236 Total information technology444,395 444,395 429,054 15,341 Total general government3,477,506 3,477,506 3,481,106 (3,600) Public safety: Police protection: Current: Personal services6,133,448 6,133,448 5,835,235 298,213 Supplies91,835 91,835 95,228 (3,393) Services and other charges1,092,012 1,092,012 964,289 127,723 Total current7,317,295 7,317,295 6,894,752 422,543 Capital outlay5,500 5,500 - 5,500 Total police protection7,322,795 7,322,795 6,894,752 428,043 Fire protection: Current: 595,091595,091 596,149 (1,058) Personal services Supplies 75,750 75,750 61,078 14,672 Services and other charges 311,376 311,376 312,096 (720) Total fire protection 982,217 982,217 969,323 12,894 Protective inspection: Current: Personal services 830,116 830,116 815,236 14,880 Supplies 6,400 6,400 5,704 696 Services and other charges 178,725 178,725 172,902 5,823 Total current 1,015,241 1,015,241 993,842 21,399 Capital outlay 750 750 1,777 (1,027) Total protective inspection 1,015,991 1,015,991 995,619 20,372 Emergency preparedness: Current: Personal services 70,062 70,062 69,304 758 Supplies 1,700 1,700 - 1,700 Services and other charges 5,900 5,900 4,421 1,479 Total emergency preparedness 77,662 77,662 73,725 3,937 Total public safety 9,398,665 9,398,665 8,933,419 465,246 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND Page 4 of 5 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Expenditures (continued): Public works: Engineering department: Current: Personal services661,636$ 661,636$ 633,069$ 28,567$ Supplies6,815 6,815 9,566 (2,751) Services and other charges54,044 54,044 58,786 (4,742) Total engineering department722,495 722,495 701,421 21,074 Street department: Current: Personal services756,461 756,461 773,734 (17,273) Supplies88,770 88,770 157,971 (69,201) Services and other charges722,631 722,631 660,205 62,426 Total street department1,567,862 1,567,862 1,591,910 (24,048) Total public works2,290,357 2,290,357 2,293,331 (2,974) Community services: Social services: Current: Services and other charges153,370 153,370 149,203 4,167 Parks and recreation: Administration: Current: Personal services195,576 195,576 198,409 (2,833) Supplies875 875 926 (51) Services and other charges5,785 5,785 2,061 3,724 Total administration202,236 202,236 201,396 840 Recreation programs: Current: Personal services481,928 481,928 498,135 (16,207) Supplies46,130 46,130 37,511 8,619 Services and other charges209,346209,346 160,162 49,184 Total recreation programs 737,404 737,404 695,808 41,596 Community center: Current: Personal services 302,856 302,856 319,626 (16,770) Supplies 22,750 22,750 52,110 (29,360) Services and other charges 185,750 185,750 164,703 21,047 Total current 511,356 511,356 536,439 (25,083) Capital outlay 17,500 17,500 - 17,500 Total community center 528,856 528,856 536,439 (7,583) CITY OF BROOKLYN CENTER, MINNESOTA GENERAL FUND Page 5 of 5 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Variance with Final Budget - Budgeted AmountsActualPositive OriginalFinalAmounts(Negative) Expenditures (continued): Parks and recreation (continued): Park maintenance: Current: Personal services594,527$ 594,527$ 571,125$ 23,402$ Supplies54,110 54,110 52,148 1,962 Services and other charges379,849 379,849 354,876 24,973 Total park maintenance1,028,486 1,028,486 978,149 50,337 Total parks and recreation 2,496,982 2,496,982 2,411,792 85,190 Economic development: Convention bureau: Current: Services and other charges 384,037 384,037 418,595 (34,558) Nondepartmental: Expenditures not charged to departments: Current: Personal services (150,000) (150,000) (150,000)- Supplies 21,350 21,350 69,913 (48,563) Services and other charges 428,120 428,120 330,922 97,198 Total nondepartmental 299,470 299,470 400,835 (101,365) Total expenditures 18,500,387 18,500,387 18,088,281 412,106 Excess (deficiency) of revenues over (under) expenditures (971,398) (971,398) 677,429 1,648,827 OTHER FINANCING SOURCES (USES) Transfers in -- 149,382 149,382 Transfers in - administrative services reimbursed1,069,398 1,069,398 982,037 (87,361) Transfers out(98,000) (98,000) (113,031) (15,031) Total other financing sources (uses) 971,398 971,398 1,018,388 46,990 Net change in fund balance - 1,695,817- 1,695,817 Fund balance - January 1 10,686,896 10,686,896 10,686,896 - Fund balance - December 31$10,686,896$10,686,896$ 12,382,713$1,695,817 CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Taxes: Property taxes246,160$ 246,160$ 247,256$ OTHER FINANCING SOURCES (USES) Transfers out(246,160) (246,160) (248,828) Net change in fund balance- - (1,572) Fund balance - January 13,464 3,464 3,464 Fund balance - December 313,464$ 3,464$ 1,892$ CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Intergovernmental-$ -$ 344,562$ Investment earnings (net of market value adjustment)- - (2,319) Miscellaneous- - 5,820 Total revenues- - 348,063 EXPENDITURES Current: Economic development: Personal services251,262 251,262 258,311 Supplies3,300 3,300 1,842 Services and other charges184,547 184,547 520,178 Total expenditures439,109 439,109 780,331 Excess (deficiency) of revenues over (under) expenditures(439,109) (439,109) (432,268) OTHER FINANCING SOURCES Transfers in246,160 246,160 248,828 Net change in fund balance(192,949) (192,949) (183,440) Fund balance - January 11,233,679 1,233,679 1,233,679 Fund balance - December 311,040,730$ 1,040,730$ 1,050,239$ CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Intergovernmental211,641$ 211,641$ 1,422,362$ EXPENDITURES Current: Economic development: Services and other charges31,740 31,740 1,272,980 Excess of revenues over expenditures179,901 179,901 149,382 OTHER FINANCING SOURCES (USES) Transfers out(179,901) (179,901) (149,382) Net change in fund balance- - - Fund balance - January 1- - - Fund balance - December 31-$ -$ -$ CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 3 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Tax increments2,205,354$ 2,205,354$ 2,766,160$ Charges for services- - 15,786 Investment earnings (net of market value adjustment)- - (11,886) Total revenues2,205,354 2,205,354 2,770,060 EXPENDITURES Current: Economic development: Services and other charges- - 250,588 Capital outlay: Economic development- - 5,041,224 Debt service: Bond issuance costs- - 96,745 Total expenditures- - 5,388,557 Excess (deficiency) of revenues over (under) expenditures2,205,354 2,205,354 (2,618,497) OTHER FINANCING SOURCES (USES) Transfers in - - 4,166 Issuance of debt- - 6,040,000 Premium on issuance of debt- - 61,007 Transfers out(1,966,107) (1,966,107) (1,964,963) Total other financing sources (uses)(1,966,107) (1,966,107) 4,140,210 Net change in fund balance239,247 239,247 1,521,713 Fund balance - January 12,530,103 2,530,103 2,530,103 Fund balance - December 312,769,350$ 2,769,350$ 4,051,816$ CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 4 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Tax increments350,691$ 350,691$ 382,924$ Investment earnings (net of market value adjustment)- - (609) Total revenues350,691 350,691 382,315 EXPENDITURES Current: Economic development: Services and other charges333,156 333,156 331,020 Net change in fund balance17,535 17,535 51,295 Fund balance - January 1170,712 170,712 170,712 Fund balance - December 31188,247$ 188,247$ 222,007$ CITY OF BROOKLYN CENTER, MINNESOTA SPECIAL REVENUE FUND - CITY INITIATIVES GRANT SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Intergovernmental105,070$ 105,070$ 233,044$ Charges for services9,625 9,625 9,306 Investment earnings (net of market value adjustment)- - (196) Miscellaneous17,225 17,225 224,730 Total revenues131,920 131,920 466,884 EXPENDITURES Current: Public safety: Personal services87,570 87,570 139,191 Supplies- - 26,109 Services and other charges- - 3,046 Parks and recreation: Personal services12,491 12,491 12,509 Supplies7,925 7,925 20,469 Services and other charges13,250 13,250 36,993 Total expenditures121,236 121,236 238,317 Excess of revenues over expenditures10,684 10,684 228,567 OTHER FINANCING SOURCES Transfers in- - 72,452 Net change in fund balance10,684 10,684 301,019 Fund balance - January 1356,187 356,187 356,187 Fund balance - December 31366,871$ 366,871$ 657,206$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2003A SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Special assessments123,983$ 123,983$ 8,279$ Investment earnings (net of market value adjustment)340 340 (1,423) Total revenues124,323 124,323 6,856 EXPENDITURES Debt service: Principal105,000 105,000 105,000 Interest2,100 2,100 2,100 Fiscal agent fees1,500 1,500 6,063 Total expenditures108,600 108,600 113,163 Excess (deficiency) of revenues over (under) expenditures15,723 15,723 (106,307) OTHER FINANCING SOURCES (USES) Transfers out- - (959,397) Net change in fund balance15,723 15,723 (1,065,704) Fund balance - January 11,065,704 1,065,704 1,065,704 Fund balance - December 311,081,427$ 1,081,427$ -$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2004C SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Special assessments116,689$ 116,689$ 52,901$ Investment earnings (net of market value adjustment)70 70 (284) Total revenues116,759 116,759 52,617 EXPENDITURES Debt service: Principal95,000 95,000 95,000 Interest8,209 8,209 8,209 Fiscal agent fees1,500 1,500 1,278 Total expenditures104,709 104,709 104,487 Net change in fund balance12,050 12,050 (51,870) Fund balance - January 1205,201 205,201 205,201 Fund balance - December 31217,251$ 217,251$ 153,331$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. REFUNDING BONDS, 2004A SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Property taxes711,725$ 711,725$ 703,019$ Investment earnings (net of market value adjustment)200 200 (2,551) Total revenues711,925 711,925 700,468 EXPENDITURES Debt service: Principal700,000 700,000 700,000 Interest11,725 11,725 11,725 Fiscal agent fees1,500 1,500 3,000 Total expenditures713,225 713,225 714,725 Excess (deficiency) of revenues over (under) expenditures(1,300) (1,300) (14,257) OTHER FINANCING SOURCES (USES) Transfers out- - (1,163,271) Net change in fund balance(1,300) (1,300) (1,177,528) Fund balance - January 11,177,528 1,177,528 1,177,528 Fund balance - December 311,176,228$ 1,176,228$ -$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2006A SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Special assessments177,271$ 177,271$ 126,791$ Investment earnings (net of market value adjustment)95 95 (619) Total revenues177,366 177,366 126,172 EXPENDITURES Debt service: Principal140,000 140,000 140,000 Interest20,053 20,053 20,053 Fiscal agent fees1,500 1,500 1,414 Total expenditures161,553 161,553 161,467 Net change in fund balance15,813 15,813 (35,295) Fund balance - January 1368,067 368,067 368,067 Fund balance - December 31383,880$ 383,880$ 332,772$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2008B SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Special assessments337,681$ 337,681$ 297,063$ Investment earnings (net of market value adjustment)190 190 (1,346) Total revenues337,871 337,871 295,717 EXPENDITURES Debt service: Principal250,000 250,000 250,000 Interest58,508 58,508 58,508 Fiscal agent fees1,500 1,500 2,075 Total expenditures310,008 310,008 310,583 Net change in fund balance27,863 27,863 (14,866) Fund balance - January 1719,735 719,735 719,735 Fund balance - December 31747,598$ 747,598$ 704,869$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2008A SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts EXPENDITURES Debt service: Principal125,000$ 125,000$ 125,000$ Interest34,344 34,344 34,344 Fiscal agent fees1,500 1,500 925 Total expenditures160,844 160,844 160,269 OTHER FINANCING SOURCES Transfers in160,844 160,844 160,269 Net change in fund balance- - - Fund balance - January 1- - - Fund balance - December 31-$ -$ -$ CITY OF BROOKLYN CENTER, MINNESOTA DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2004D SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts EXPENDITURES Debt service: Principal1,240,000$ 1,240,000$ 1,240,000$ Interest563,763 563,763 563,763 Fiscal agent fees1,500 1,500 931 Total expenditures1,805,263 1,805,263 1,804,694 OTHER FINANCING SOURCES Transfers in1,805,263 1,805,263 1,804,694 Net change in fund balance- - - Fund balance - January 1- - - Fund balance - December 31-$ -$ -$ CITY OF BROOKLYN CENTER, MINNESOTA CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Property taxes-$ -$ 8,199$ Special assessments- - 1,560 Investment earnings (net of market value adjustment)- - 71 Total revenues- - 9,830 EXPENDITURES Capital outlay: Parks and recreation78,000 78,000 91,959 Excess (deficiency) of revenues over (under) expenditures(78,000) (78,000) (82,129) OTHER FINANCING SOURCES (USES) Transfers in200,000 200,000 2,322,668 Transfers out- - (60,567) Total other financing sources (uses)200,000 200,000 2,262,101 Net change in fund balance122,000 122,000 2,179,972 Fund balance - January 1892,786 892,786 892,786 Fund balance - December 311,014,786$ 1,014,786$ 3,072,758$ CITY OF BROOKLYN CENTER, MINNESOTA CAPITAL PROJECT FUND - MUNICIPAL STATE AID FOR CONSTRUCTION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Intergovernmental820,261$ 820,261$ 73,441$ Investment earnings (net of market value adjustment)- - (1,027) Total revenues820,261 820,261 72,414 EXPENDITURES Current: Public works: Supplies42,800 42,800 41,513 Services and other charges47,200 47,200 47,371 Capital outlay: Public works360,000 360,000 - Total expenditures450,000 450,000 88,884 Net change in fund balance370,261 370,261 (16,470) Fund balance - January 12,340,192 2,340,192 2,340,192 Fund balance - December 312,710,453$ 2,710,453$ 2,323,722$ CITY OF BROOKLYN CENTER, MINNESOTA CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Special assessments-$ -$ 1,229,767$ Charges for services- - 58,702 Investment earnings (net of market value adjustment)- - (21,100) Total revenues- - 1,267,369 EXPENDITURES Capital outlay: Public works7,539,000 7,539,000 3,451,216 Debt service: Bond issuance costs- - 66,613 Total expenditures7,539,000 7,539,000 3,517,829 Excess (deficiency) of revenues over (under) expenditures(7,539,000) (7,539,000) (2,250,460) OTHER FINANCING SOURCES Transfers in7,539,000 7,539,000 - Issuance of debt- - 4,920,000 Premium on issuance of debt- - 306,398 Total other financing sources7,539,000 7,539,000 5,226,398 Net change in fund balance- - 2,975,938 Fund balance (deficit) - January 1(2,005,796) (2,005,796) (2,005,796) Fund balance - December 31(2,005,796)$ (2,005,796)$ 970,142$ CITY OF BROOKLYN CENTER, MINNESOTA CAPITAL PROJECT FUND - STREET RECONSTRUCTION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Franchise fees650,000$ 650,000$ 651,832$ Investment earnings (net of market value adjustment)- - 717 Total revenues650,000 650,000 652,549 EXPENDITURES Capital outlay: Public works1,330,000 1,330,000 - Net change in fund balance(680,000) (680,000) 652,549 Fund balance - January 11,037,188 1,037,188 1,037,188 Fund balance - December 31357,188$ 357,188$ 1,689,737$ CITY OF BROOKLYN CENTER, MINNESOTA CAPITAL PROJECT FUND - TECHNOLOGY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2013 Budgeted AmountsActual OriginalFinalAmounts REVENUES Investment earnings (net of market value adjustment)-$ -$ 31$ EXPENDITURES Current: General government: Supplies65,175 65,175 68,256 Services and other charges- - 454 Capital outlay: General government160,000 160,000 18,311 Total expenditures225,175 225,175 87,021 Excess (deficiency) of revenues over (under) expenditures(225,175) (225,175) (86,990) OTHER FINANCING SOURCES (USES) Transfers in98,000 98,000 98,000 Transfers out- - (1,020) Total other financing sources (uses)98,000 98,000 96,980 Net change in fund balance(127,175) (127,175) 9,990 Fund balance - January 127,798 27,798 27,798 Fund balance - December 31(99,377)$ (99,377)$ 37,788$ CITY OF BROOKLYN CENTER, MINNESOTA INTERNAL SERVICE FUNDS Internal service funds are used to account for and report financial resources for the purchase of goods or services rovided by one department to other departments of the City on a cost reimbursement basis. p Central Garage 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. Employees (EE) Retirement Benefits 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 employeers hired befor e 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. Employees (EE) Compensated Absences This fund accounts for payment of unused vacation and vested sick leave benefits, and the allocation of such costs to the respective departments and funds of the City. 113 CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS December 31, 2013 Total CentralEE RetirementEE CompInternal GarageBenefitAbsencesService ASSETS Current assets: Cash and cash equivalents4,580,700$ 907,026$ 1,232,551$ 6,720,277$ Receivables: Accounts - net21,034 - - 21,034 Inventories21,614 - - 21,614 Total current assets4,623,348 907,026 1,232,551 6,762,925 Noncurrent assets: Capital assets: Land improvements166,108 - - 166,108 Machinery and equipment8,539,852 - - 8,539,852 Total capital assets8,705,960 - - 8,705,960 Less: accumulated depreciation(4,883,421) - - (4,883,421) Net capital assets3,822,539 - - 3,822,539 Total assets8,445,887 907,026 1,232,551 10,585,464 LIABILITIES Current liabilities: Accounts payable171,038 - - 171,038 Accrued salaries and wages16,968 1,162 - 18,130 Due to other governments95 - - 95 Compensated absences payable- - 123,255 123,255 Total current liabilities188,101 1,162 123,255 312,518 Noncurrent liabilities: Compensated absences payable- - 1,109,296 1,109,296 Net OPEB obligation- 586,026 - 586,026 Total noncurrent liabilities- 586,026 1,109,296 1,695,322 Total liabilities188,101587,1881,232,5512,007,840 NET POSITION Net investment in capital assets3,822,539--3,822,539 Unrestricted4,435,247319,838-4,755,085 $ 319,8388,257,786$ -$ 8,577,624$ Total net positio n CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 Total CentralEE RetirementEE CompInternal GarageBenefitAbsencesService OPERATING REVENUES Sales and user fees1,870,245$ 21,641$ 68,870$ 1,960,756$ OPERATING EXPENSES Personal services359,340 238,744 66,993 665,077 Supplies554,432 - - 554,432 Other services136,025 - - 136,025 Insurance46,016 - - 46,016 Utilities519 - - 519 Depreciation693,055 - - 693,055 Total operating expenses1,789,387 238,744 66,993 2,095,124 Operating income (loss)80,858 (217,103) 1,877 (134,368) NONOPERATING REVENUES Intergovernmental- 9,827 - 9,827 Investment earnings (net of market value adjustment)(7,240) (1,262) (1,877) (10,379) Gain on sale of capital assets54,211 - - 54,211 Other revenue33,184 - - 33,184 Total nonoperating revenues80,155 8,565 (1,877) 86,843 Change in net position161,013 (208,538) - (47,525) Net position - January 18,096,773 528,376 - 8,625,149 et position - December 31$8,257,786$319,838$ 8,577,624-$ N CITY OF BROOKLYN CENTER, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the Year Ended December 31, 2013 Total CentralEE RetirementEE CompInternal GarageBenefitAbsencesService CASH FLOWS FROM OPERATING ACTIVITIES Receipts from interfund services provided$ 1,880,699$ 21,641$ 68,870$ 1,971,210 Payments to suppliers (705,778) - (705,778)- Payments to employees (357,135) (139,794) (98,662) (595,591) Miscellaneous revenue 33,184 - - 33,184 Net cash flows provided (used) by operating activities 850,970 (118,153) (29,792) 703,025 CASH FLOWS FROM NONCAPITAL S FINANCING ACTIVITIE Intergovernmental-9,827-9,827 Interfund receivable 1,962,739 - 1,962,739- Net cash flows provided by noncapital financing activities 1,962,739 9,827 1,972,566- D CASH FLOWS FROM CAPITAL AND RELATE FINANCING ACTIVITIES Acquisition and construction of capital assets (745,994) - (745,994)- Proceeds from sale of capital assets 137,535 - 137,535- Net cash flows provided (used) by capital and related financing activities (608,459) - (608,459)- CASH FLOWS FROM INVESTING ACTIVITIES Interest on investments (1,262)(7,240) (1,877) (10,379) Net increase (decrease) in cash and cash equivalents 2,198,010 (109,588) (31,669) 2,056,753 Cash and cash equivalents - January 1 2,382,690 1,016,614 1,264,220 4,663,524 Cash and cash equivalents - December 31$4,580,700$907,026$ 1,232,551$6,720,277 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss) $ 80,858$ (217,103)$ 1,877$ (134,368) Adjustments to reconcile operating income (loss) to net cash flows provided (used) by operating activities: Other income related to operations 33,184 - - 33,184 Depreciation 693,055 - 693,055- (Increase) decrease in assets: Accounts receivable 10,454 - - 10,454 Inventories 4,694 - - 4,694 Increase (decrease) in liabilities: Accounts payable 26,520 - - 26,520 Accrued salaries and wages 2,205 98,950 (31,669) 69,486 Net cash provided (used) by operating activities$850,970$(118,153)$ (29,792)$703,025 S NONCASH FINANCING ACTIVITIE Acquisitions of capital assets on account$ 136,852$ -$ 136,852-$ Gain on sale of capital assets$ 54,211$ -$ -$ 54,211 {··z­·z-Œ{;-·zš“ 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 118 These tables contain trend information to help the reader understand the City’s financial performance by placing it in historical perspective. Revenue Capacity 132 These tables contain information to help the reader assess the City’s most significant “own-source” revenue, property taxes. Debt Capacity 138 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 145 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 147 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. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT Last ten fiscal years (accrual basis of accounting) 2004200520062007 Governmental activities Net investment in capital assets12,648,271$ 21,992,263$ 28,191,206$ 30,780,590$ Restricted39,412,423 29,326,928 27,637,465 21,738,515 Unrestricted3,226,051 6,793,778 4,055,312 8,061,157 Total governmental activities net position55,286,745$ 58,112,969$ 59,883,983$ 60,580,262$ Business-type activities Net investment in capital assets36,129,095$ 37,988,441$ 38,248,496$ 40,466,892$ Unrestricted7,137,218 7,087,856 7,973,318 9,845,252 Total business-type activities net position43,266,313$ 45,076,297$ 46,221,814$ 50,312,144$ Primary government Net investment in capital assets48,777,366$ 59,980,704$ 66,439,702$ 71,247,482$ Restricted39,412,423 29,326,928 27,637,465 21,738,515 Unrestricted10,363,269 13,881,634 12,028,630 17,906,409 Total primary government net position98,553,058$ 103,189,266$ 106,105,797$ 110,892,406$ Sources: The data for this table has been extracted from the respective years CAFR document. Fund Balance and Governmental Fund Type Note: During 2011, the City implemented GASB Statement No. 54, Definitions. As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been restated in this statistical schedule. Table 1 200820092010201120122013 $ 33,550,66431,423,905$ 40,978,165$ 45,761,042$ 45,261,629$ 42,281,203$ 29,027,99131,850,784 22,067,726 24,847,507 24,259,292 27,219,086 4,082,990690,424 6,985,972 4,376,334 5,875,289 11,205,288 $ 66,661,64563,965,113$ 70,031,863$ 74,984,883$ 75,396,210$ 80,705,577$ $ 42,297,11042,572,360$ 42,800,624$ 45,051,128$ 42,406,210$ 42,466,488$ 8,835,64410,466,919 8,673,168 8,300,659 11,856,924 12,208,126 $ 51,132,75453,039,279$ 51,473,792$ 53,351,787$ 54,263,134$ 54,674,614$ $ 75,847,77473,996,265$ 83,778,789$ 90,812,170$ 87,667,839$ 84,747,691$ 29,027,99131,850,784 22,067,726 24,847,507 24,259,292 27,219,086 12,918,63411,157,343 15,659,140 12,676,993 17,732,213 23,413,414 $ 117,794,399117,004,392$ 121,505,655$ 128,336,670$ 129,659,344$ 135,380,191$ CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES Last ten fiscal years (accrual basis of accounting) 2004200520062007 GOVERNMENTAL ACTIVITIES Expenses General government2,801,422$ 2,970,364$ 2,936,638$ 2,953,328$ Public safety7,538,277 7,848,160 8,039,356 8,051,836 Public works1,956,119 3,856,992 2,087,259 2,704,435 Community services67,324 86,043 123,172 74,389 Parks and recreation2,255,231 2,305,047 2,565,364 2,624,897 Economic development1,683,025 1,217,294 2,567,377 3,966,908 Interest on long-term debt1,268,649 1,349,852 1,184,017 1,127,276 Total expenses 19,633,75217,570,047 19,503,183 21,503,069 Program Revenues Charges for services: General government315,120 297,511 289,203 902,734 Public safety687,731 1,026,736 800,408 847,307 Public works23,533 9,661 259,273 241,035 Community services- - - - Parks and recreation618,199 681,851 665,332 692,781 Economic development- 35,933 164,531 49,498 Operating grants and contributions933,104 795,633 748,888 818,989 Capital grants and contributions2,423,411 2,398,345 2,208,751 2,646,320 Total program revenues 5,245,6705,001,098 5,136,386 6,198,664 Net (expense) / revenue (14,388,082)(12,568,949) (14,366,797) (15,304,405) General Revenues and Transfers Taxes: Property11,445,00411,951,497 12,276,896 12,200,575 Tax increments 4,285,166 4,216,246 2,682,874 2,677,630 Lodging taxes 656,859 710,619 738,776 706,930 Unrestricted grants and contributions 923,374 577,548 702,030 1,263,753 Investment earnings (net) 491,524 1,272,409 1,928,462 1,852,117 Gain on disposal of capital asset 29,202 31,880 23,963 88,508 Miscellaneous 660,218 - - - Transfers 2,004,810 (1,545,893) 303,286 (273,070) Total general revenues and transfers 20,496,157 17,214,306 18,656,287 18,516,443 Restatements for: prior period adjustments or change in accounting principle - (2,518,476)- (2,515,759) Change in Net Position $7,927,208$2,826,224$ 1,771,014$696,279 Table 2 Page 1 of 3 200820092010201120122013 $ 3,653,9563,498,767$ 3,553,737$ 3,216,321$ 3,246,015$ 3,165,401$ 9,036,1768,760,880 9,125,547 9,268,897 9,604,521 9,618,906 2,687,9802,596,754 2,747,641 2,771,602 3,561,914 4,215,855 71,51972,893 82,645 100,849 141,505 149,203 2,773,5282,910,825 2,732,401 2,895,769 2,796,561 2,752,539 2,151,9163,713,340 6,504,034 2,542,520 5,438,372 3,833,915 1,143,5461,125,712 974,950 865,799 768,241 490,162 21,518,62122,679,171 25,720,955 21,661,757 25,557,129 24,225,981 1,102,3601,115,038 1,081,556 1,078,109 1,082,741 790,316 1,234,678780,080 1,501,513 1,547,446 1,402,204 786,828 26,027127,489 43,194 16,191 270,680 5,879 -- 442 - - 7,772 740,782754,079 725,891 721,663 897,592 650,522 44524,435 5,525 88,737 19,734 90,656 1,003,8841,034,9052,013,099 1,637,743 3,165,588 3,089,220 2,706,056 1,566,224 6,627,777 5,299,705 491,404 4,427,586 6,511,061 5,705,421 11,998,997 10,389,594 7,329,943 9,848,779 (16,168,110) (15,813,200) (13,721,958) (11,272,163) (18,227,186) (14,377,202) 12,458,724 12,899,250 12,949,069 13,336,056 14,307,993 14,943,008 2,912,773 3,616,157 3,127,373 2,525,057 2,751,249 3,098,620 619,962 591,291 696,746 852,302 882,620 881,252 607,073 1,019,990 411,378 549,649 496,679 590,916 903,939 309,715 33,885 191,510 85,560 (81,438) 73,036 40,632 - 111,530 113,976 54,211 - - - - - - (1,693,225) 32,697 (126,275) (749,308) 436 200,000 15,882,282 18,509,732 17,092,176 16,816,796 18,638,513 19,686,569 3,670,679 - - - - - $ 3,384,851$ 2,696,532$3,370,218$5,544,633$411,327$5,309,367 CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION - CONTINUED Last ten fiscal years (accrual basis of accounting) 2004200520062007 BUSINESS-TYPE ACTIVITIES Expenses Municipal liquor939,244$ 978,743$ 970,260$ 1,037,427$ Golf course271,127 273,024 282,418 313,794 Earle Brown Heritage Center2,180,229 2,262,359 2,439,709 2,431,719 Water utility222,821 1,795,759 1,635,847 1,716,497 Sanitary sewer utility165,651 2,808,644 3,176,426 2,930,016 Storm drainage utility1,533,923 1,102,672 950,425 1,123,636 Recycling utility2,310,645 254,661 245,853 257,300 Street light utility756,593 213,094 161,219 191,659 Total expenses 9,688,9568,380,233 9,862,157 10,002,048 Program Revenues Charges for services: Municipal liquor991,058 1,099,172 1,244,738 1,362,093 Earle Brown Heritage Center1,675,267 1,857,461 2,168,861 2,168,033 Water utility1,583,450 1,825,521 1,906,375 2,063,930 Sanitary sewer utility2,833,836 2,966,222 3,186,569 3,274,678 Storm drainage utility1,276,778 1,298,690 1,323,607 1,412,548 Other activities707,460 706,105 714,373 732,224 Capital grants and contributions- - - - Total program revenues 9,753,1719,067,849 10,544,523 11,013,506 Net (expense) / revenue 64,215687,616 682,366 1,011,458 General Revenues and Transfers Investment earnings (net)102,696199,876337,231 406,654 Miscellaneous 117,864 - - - Transfers (2,004,810) 1,545,893 (303,286) 273,070 Total general revenues and transfers (1,784,250) 1,745,769 33,945 679,724 Restatements for: prior period adjustments or change in accounting principle - - 429,206 2,399,148 Change in Net Position $(1,096,634)$1,809,984$ 1,145,517$4,090,330 Table 2 Page 2 of 3 200820092010201120122013 $ 1,249,9461,125,517$ 1,262,076$ 1,218,399$ 1,274,375$ 5,674,937$ 323,340304,832 317,539 284,673 273,023 263,425 2,363,0852,403,676 2,345,920 2,602,074 2,768,719 4,835,131 3,448,8191,783,275 1,792,628 1,825,558 1,855,345 2,025,496 3,736,9893,018,418 3,282,472 3,277,874 3,317,427 3,382,810 1,282,5051,162,957 1,348,974 1,407,712 1,501,652 1,552,327 276,058265,983 278,381 284,440 285,853 257,079 220,020182,402 213,752 232,716 222,835 289,043 12,900,76210,247,060 10,841,742 11,133,446 11,499,229 18,280,248 1,530,1751,492,644 1,538,403 1,620,315 1,656,125 6,072,334 1,725,8581,959,628 1,879,902 2,026,063 2,293,386 4,294,723 2,019,3252,003,633 1,959,684 1,990,664 2,321,539 2,318,176 3,315,7263,264,649 3,321,373 3,474,588 3,592,530 3,675,936 1,577,8791,553,236 1,575,679 1,621,104 1,660,849 1,622,012 763,858770,472760,757 778,584 853,585 882,995 - - - 80,186 - 52,775 11,037,648 10,939,435 11,035,798 11,591,504 12,378,014 18,918,951 790,588 (1,961,327) 194,056 458,058 878,785 638,703 243,322 87,499 20,707 79,016 32,998 (27,223) - - - - - - 1,693,225 (32,697) 126,275 749,308 (436) (200,000) 1,936,547 54,802 146,982 828,324 32,562 (227,223) - - - - - - $ 2,727,135$ (1,906,525)$341,038$1,286,382$911,347$411,480 CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION - CONTINUED Last ten fiscal years (accrual basis of accounting) 2004200520062007 TOTAL PRIMARY GOVERNMENT Expenses Governmental activities17,570,047$ 19,633,752$ 19,503,183$ 21,503,069$ Business-type activities8,380,233 9,688,956 9,862,157 10,002,048 Total expenses 29,322,70825,950,280 29,365,340 31,505,117 Program Revenues Governmental activities5,001,098 5,245,670 5,136,386 6,198,664 Business-type activities9,067,849 9,753,171 10,544,523 11,013,506 Total program revenues 14,998,84114,068,947 15,680,909 17,212,170 Net (expense) / revenue (14,323,867)(11,881,333) (13,684,431) (14,292,947) General Revenues and Transfers Governmental activities20,496,157 17,214,306 18,656,287 18,516,443 Business-type activities(1,784,250) 1,745,769 33,945 679,724 Total general revenues and transfers 18,960,07518,711,907 18,690,232 19,196,167 Restatements for: prior period adjustments or change in accounting principle Governmental activities- - (2,518,476) (2,515,759) Business-type activities- - 429,206 2,399,148 Total restatements -- (2,089,270) (116,611) Change in Net Position $ 4,636,2086,830,574$ 2,916,531$ 4,786,609$ Sources: The data for this table has been extracted from the respective years CAFR document. Fund Balance and Governmental Fund Type Note: During 2011, the City implemented GASB Statement No. 54, Definitions. As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been restated in this statistical schedule. Table 2 Page 3 of 3 200820092010201120122013 $ 21,518,62122,679,171$ 25,720,955$ 21,661,757$ 25,557,129$ 24,225,981$ 12,900,76210,247,060 10,841,742 11,133,446 11,499,229 18,280,248 34,419,38332,926,231 36,562,697 32,795,203 37,056,358 42,506,229 5,705,4216,511,061 11,998,997 10,389,594 7,329,943 9,848,779 10,939,43511,037,648 11,035,798 11,591,504 12,378,014 18,918,951 16,644,85617,548,709 23,034,795 21,981,098 19,707,957 28,767,730 (17,774,527)(15,377,522) (13,527,902) (10,814,105) (17,348,401) (13,738,499) 18,509,73215,882,282 17,092,176 16,816,796 18,638,513 19,686,569 54,8021,936,547 146,982 828,324 32,562 (227,223) 18,564,53417,818,829 17,239,158 17,645,120 18,671,075 19,459,346 -3,670,679 - - - - -- - - - - -3,670,679 - - - - $ 790,0076,111,986$ 3,711,256$ 6,831,015$ 1,322,674$ 5,720,847$ CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE Last ten fiscal years (accrual basis of accounting) PropertyTaxLodging TaxesIncrementsTaxesTotal 200411,445,004$ 4,285,166$ 656,859$ 16,387,029$ 200511,951,497 4,216,246 710,619 16,878,362 200612,276,896 2,682,874 738,776 15,698,546 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 201314,943,008 3,098,620 881,252 18,922,880 Sources: The data for this table has been extracted from the respective years CAFR document. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES - GOVERNMENTAL FUNDS Last ten fiscal years (modified accrual basis of accounting) 2004200520062007 General Fund Reserved106,578$ 11,080$ 500$ 700$ Unreserved6,862,871 7,283,871 7,508,690 7,941,714 Nonspendable- - - - Assigned- - - - Unassigned- - - - Total general fund6,969,449$ 7,294,951$ 7,509,190$ 7,942,414$ All other governmental funds Reserved13,230,540$ 5,150,818$ 5,176,808$ 11,288,685$ Unreserved, reported in: Special revenue funds25,750,179 24,853,267 22,862,211 11,738,460 Capital project funds4,969,506 3,232,820 4,164,400 3,466,029 Restricted- - - - Committed- - - - Unassigned- - - - Total all other governmental funds43,950,225$ 33,236,905$ 32,203,419$ 26,493,174$ Sources: The data for this table has been extracted from the respective years CAFR document. Fund Balance and Governmental Fund Type Note: During 2011, the City implemented GASB Statement No. 54, Definitions. As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been restated in this statistical schedule. Table 4 200820092010201120122013 $ 27,99321,995$ 26,405$ -$ -$ -$ 8,502,0127,721,443 8,803,942 - - - -- - 32,308 88,952 26,139 -- - 2,614 - 2,754,124 -- - 9,695,913 10,597,944 9,602,450 $ 8,530,0057,743,438$ 8,830,347$ 9,730,835$ 10,686,896$ 12,382,713$ $ 8,696,3249,997,668$ 7,388,488$ -$ -$ -$ 9,399,55610,523,743 7,095,645 - - - 3,609,9614,282,881 2,203,823 - - - -- - 13,331,705 12,912,357 12,037,147 -- - 3,021,318 3,651,995 7,579,688 -- - (2,515,053) (3,425,001) (1,432,495) $ 21,705,84124,804,292$ 16,687,956$ 13,837,970$ 13,139,351$ 18,184,340$ CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last ten fiscal years (modified accrual basis of accounting) 2004200520062007 Revenues Property taxes10,598,478$ 11,641,177$ 11,525,040$ 12,094,359$ Tax increments3,834,060 4,680,688 2,664,144 2,727,637 Franchise fees612,079 662,614 658,410 658,620 Lodging taxes656,858 710,619 738,776 706,930 Special assessments1,313,782 1,226,655 1,214,571 1,364,413 Licenses and permits678,077 675,530 722,633 673,156 Intergovernmental3,239,020 2,578,031 2,375,697 3,171,745 Charges for services711,526 754,575 722,218 705,736 Fines and forfeits254,980 253,748 256,600 291,423 Investment earnings (net)385,022 1,078,434 1,601,731 1,519,503 Miscellaneous609,902 427,839 477,296 404,420 Total revenues22,893,784 24,689,910 22,957,116 24,317,942 Expenditures General government2,594,041 2,586,993 2,839,150 2,951,188 Public safety7,025,629 7,014,528 7,299,842 7,550,434 Public works1,814,107 2,197,127 1,817,120 2,310,846 Community services67,324 86,043 123,172 74,389 Parks and recreation1,981,998 2,121,130 2,212,142 2,314,099 Economic development1,006,550 2,076,023 1,386,558 5,659,331 Nondepartmental333,669 315,355 363,967 354,848 Administrative services reimbursement(784,084) (754,085) (529,362)(744,590) Capital outlay4,724,289 8,335,916 5,918,472 4,524,524 Debt service Principal 3,751,513 2,772,189 3,127,146 2,786,076 Interest 881,016 1,214,751 1,197,392 1,134,412 Other charges 223,361 23,758 53,671 12,896 Total expenditures 23,619,413 27,989,728 25,809,270 28,928,453 Excess (deficiency) of revenues over (under) expenditures (725,629) (3,299,818) (2,852,154) (4,610,511) Other financing sources (uses) Transfers in 5,103,613 2,811,793 2,784,116 5,881,257 Issuance of debt 25,770,000 1,460,000- - Premium on issuance of debt - - - - Sale of capital assets - - - - Refunded bonds redeemed (7,280,000)- - (529,138) Transfers out (3,098,803) (2,619,793) (2,211,209) (6,018,629) Total other financing sources (uses) 27,774,810 (7,088,000) 2,032,907 (666,510) Net change in fund balances$ 27,049,181$(10,387,818)$(819,247)$ (5,277,021) Debt service as a percentage of noncapital expenditures24.23%18.26%18.90%15.85% Sources: The data for this table has been extracted from the respective years CAFR document. Fund Balance and Governmental Fund Type Note: During 2011, the City implemented GASB Statement No. 54, Definitions. As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been restated in this statistical schedule. Table 5 200820092010201120122013 $ 12,897,00212,403,914$ 13,012,317$ 13,396,611$ 14,389,842$ 15,094,464$ 3,601,7472,894,595 3,111,882 2,527,316 2,685,822 3,149,533 656,772643,934 647,796 659,066 647,346 651,832 591,291619,962 696,746 852,302 882,620 881,252 1,352,9081,289,148 1,491,194 1,975,470 1,294,521 1,877,116 616,135643,736 1,063,945 961,947 858,593 1,084,003 2,789,0072,211,560 6,859,817 4,929,902 3,607,218 3,159,571 1,120,341761,404 1,001,019 1,122,350 1,056,241 1,073,917 340,536302,986 359,937 340,356 336,740 315,982 247,260733,877 24,212 143,661 48,322 (71,059) 370,508449,061 285,425 296,427 742,269 423,822 24,583,50722,954,177 28,554,290 27,205,408 26,549,534 27,640,433 3,853,6283,575,147 3,847,199 3,452,428 3,543,040 3,627,498 8,452,3488,048,529 8,524,140 8,674,195 9,090,324 9,117,541 2,170,059 2,392,297 2,118,303 2,382,215 2,139,8642,155,532 72,893 71,519 82,645 100,849 141,505 149,203 2,409,291 2,462,275 2,442,938 2,412,952 2,532,827 2,481,763 7,666,319 2,531,062 3,105,007 2,337,253 5,215,619 3,076,454 301,396 313,723 300,549 316,376 287,692 400,835 (802,775) (859,456) (1,074,575) (883,279) (700,065) (982,037) 4,531,003 2,820,761 8,549,489 5,558,718 699,563 8,640,814 2,884,953 4,445,471 4,676,066 2,965,613 2,666,790 2,655,000 1,060,165 1,183,560 1,026,800 895,053 797,785 698,702 101,809 15,170 14,104 14,581 7,677 179,044 31,988,594 27,445,593 33,664,421 28,237,036 26,401,060 32,427,032 (9,034,417) (2,862,086) (5,110,131) (1,031,628) 148,474 (4,786,599) 1,969,533 3,632,013 4,888,536 3,083,093 2,320,883 4,860,459 6,725,000 - - - 10,960,000- 367,405 1,384 - - -- - - - - 108,532 - - - - - - - (1,549,358) (3,081,811) (4,495,948) (3,409,350) (2,320,447) (4,660,459) 7,146,559 550,202 392,588 (326,257) 108,968 11,527,405 $ (1,887,858)$ (2,311,884)$ (4,717,543)$(1,357,885)$257,442$ 6,740,806 14.38%22.86%22.71%17.02%13.48%11.52% CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last ten fiscal years 2004200520062007 Estimated actual value: Real estate Personal property Total estimated actual value1,840,115,300$ 1,959,999,100$ 2,035,666,100$ 2,140,133,600$ Tax Capacity Real estate20,307,910$ 22,080,464$ 23,418,557$ 25,009,973$ Personal property281,963 294,377 298,953 283,198 Contribution to fiscal disparities(2,030,791) (2,208,046) (2,341,856) (2,500,997) Receipt from fiscal disparities3,128,387 3,231,664 3,503,030 4,125,105 Tax increments(3,134,417) (3,122,665) (2,559,620) (2,463,631) et tax capacity for direct rate$18,553,052$20,275,794$ 22,319,064$24,453,648 N Net Tax Capacity as a Percentage of Estimated Actual Market Value1.01%1.03%1.10%1.14% Property Tax Levies General revenues$ 10,546,562$ 10,308,649$ 10,612,956$ 10,939,788 Debt service - 759,074 757,394 753,955 Housing and Redevelopment Authority 232,395 251,295 257,065 265,000 Total property taxes levie$10,778,957$ 11,627,41511,319,018$ 11,958,743$ d Tax Rates General revenues52.440 46.740 43.524 41.199 Debt service- 3.744 3.393 3.083 Housing and Redevelopment Authority1.253 1.239 1.152 1.084 Total Direct Tax Rate53.693 51.723 48.069 45.366 Sources: The data for this table has been provided by Hennepin County. Note: The breakdown of real estate vs. personal property for estimated actual value, was not available prior to 2008. This information will be updated on a go-forward basis. Table 6 200820092010201120122013 $ 2,079,719,7002,182,205,700$ 1,882,823,900$ 1,682,317,900$ 1,633,327,900$ 1,506,661,400$ 14,386,50014,862,000 14,219,700 15,487,000 16,139,200 18,257,700 $ 2,094,106,2002,197,067,700$ 1,897,043,600$ 1,697,804,900$ 1,649,467,100$ 1,524,919,100$ $ 25,158,44125,898,336$ 23,099,333$ 20,759,133$ 18,351,627$ 17,129,016$ 283,070291,815 278,984 304,150 316,491 358,867 (2,719,868)(2,470,328) (2,998,145) (2,774,593) (2,619,012) (2,335,813) 5,259,6854,625,964 7,002,213 7,123,008 7,194,133 6,844,540 (2,739,457)(2,405,929) (2,420,044) (2,093,764) (1,922,253) (2,169,035) $ 25,241,87125,939,858$ 24,962,341$ 23,317,934$ 21,320,986$ 19,827,575$ 1.18%1.21%1.32%1.37%1.29%1.30% $ 11,804,01611,404,750$ 12,504,044$ 12,905,340$ 13,207,954$ 13,632,326$ 703,903730,152 715,183 695,632 708,581 711,725 385,289302,191 349,745 310,831 302,288 246,160 $ 12,893,20812,437,093$ 13,568,972$ 13,911,803$ 14,218,823$ 14,590,211$ 44.73241.081 48.230 54.234 61.036 67.485 2.7892.865 2.983 3.323 3.590 2.815 1.185 1.617 1.317 1.341 1.457 1.128 45.081 49.13852.41258.558 65.81672.202 CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Last ten fiscal years Overlapping Rates Metro CityCountyDistrict 11District 279District 281District 286Districts (1) 200453.693 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 65.816 48.231 23.325 24.930 32.810 48.020 3.084 2013 72.202 49.461 26.801 27.973 32.347 56.031 3.242 Sources: The data for this table has been provided by Hennepin County. Note (1) - Metro Districts include: Mosquito Control, Metropolitan Council, and Metro Transit Note (2) - Other Districts include: Hennepin Parks, Park Museum, Regional Railroad Authority, and Hennepin HRA. Note (3) - The Watershed levy is applicable to all of School Districts 279 & 281, and portions of Districts 11 & 286. Table 7 Total Direct and Overlapping Rates OtherDistrict 11DistrictDistrictDistrict 286 Districts (2)Watershed (3)District 11& Watershed279281District 286& Watershed 3.986 - 1 29.555 1 29.555 1 32.214 1 42.763 1 48.397 1 48.397 4.078 - 1 24.769 1 24.769 1 27.613 1 33.266 1 39.436 1 39.436 4.074 0 .073 1 16.129 1 16.202 1 17.971 1 24.645 1 35.864 1 35.937 4.639 - 1 11.139 1 11.139 1 15.544 1 20.536 1 27.940 1 27.940 4.835 0 .265 1 08.032 1 08.297 1 11.024 1 18.557 1 28.568 1 28.833 4.575 0 .047 1 14.968 1 15.015 1 17.785 1 23.966 1 39.868 1 39.915 5.518 0 .081 1 23.129 1 23.210 1 25.652 1 31.892 1 54.363 1 54.444 6.223 0 .568 1 37.569 1 38.137 1 38.355 1 48.525 1 61.267 1 61.835 6.439 0 .001 1 46.895 1 46.896 1 48.501 1 56.381 1 71.590 1 71.591 6.874 0 .101 1 58.580 1 58.681 1 59.853 1 64.227 1 87.810 1 87.911 CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 8 PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago 20132004 Percentage ofPercentage of Net TaxTotal TaxNet TaxTotal Tax TaxpayerClassificationCapacityRankCapacity ValueCapacityRankCapacity Value PH Minneapolis, LLCCommercial455,050$ 12.30% Medtronic, Inc.Industrial192,250 20.97%175,650$ 60.95% Brookdale Corner LLCCommercial188,250 30.95%204,850 31.10% Twin Lakes, LLCApartment169,000 40.85%184,613 51.00% Ax Rer, LPIndustrial167,250 50.84% Target CorporationCommercial160,250 60.81% GB Homes, LLCApartment147,800 70.75% Luther Company, LLPCommercial144,050 80.73% Wings Financial Credit UnionCommercial140,810 90.71% Brooklyn Hotel Partners, LLCCommercial134,400 100.68% Talisman Brookdale, LLCCommercial1,044,060 15.63% Regal Cinemas, Inc.Commercial234,350 21.26% BCC Associates LLCCommercial191,250 41.03% Marshall FieldsCommercial166,450 70.90% Center Point ApartmentsApartment150,750 80.81% Sears Roebuck and Co.Commercial150,220 90.81% Wickes Furniture CompanyCommercial146,110 100.79% Totals1,899,110$ 9.59%2,648,303$ 14.28% Sources: The data for this table has been provided by Hennepin County. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) PROPERTY TAX LEVIES AND COLLECTIONSTable 9 Last ten fiscal years Collected within the CertifiedFiscal Year of the LevyCollections inTotal Collections to Date PropertyPercentageSubsequentPercentage Tax LevyAmountof LevyYearsAmountto Date 200410,778,957$ 9,504,581$ 88.2%1,274,376$ 10,778,957$ 100.0% 200511,319,018 10,403,359 91.9%915,659 11,319,018 100.0% 200611,627,415 10,697,638 92.0%929,777 11,627,415 100.0% 200711,958,743 11,070,387 92.6%888,356 11,958,743 100.0% 200812,437,093 11,577,739 93.1%859,354 12,437,093 100.0% 200912,893,208 11,983,738 92.9%909,470 12,893,208 100.0% 201013,568,972 12,633,425 93.1%935,547 13,568,972 100.0% 201113,911,803 12,947,358 93.1%964,445 13,911,803 100.0% 201214,218,823 13,942,766 98.1%203,299 14,146,065 99.5% 201314,590,211 14,453,574 99.1%- 14,453,574 99.1% Sources: The data for this table has been provided by Hennepin County and from City financial maintenance documents. Note: The components of the Certified Property Tax Levy can be viewed in table 6 of the statistical section. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) RATIOS OF OUTSTANDING DEBT BY TYPETable 10 Last ten fiscal years Business-Type Governmental ActivitiesActivities GeneralTaxG.O.Storm SewerUtilityPercentage ObligationIncrementImprovementRevenueRevenueTotalof PersonalPer BondsBondsBondsBondsBonds (BAB)DebtIncomeCapita 200411,025,000$ $ 22,445,000$ 5,710,000$ 230,000$ 39,410,000-$ 2.81%$ 1,359 20055,340,000 19,305,000 4,720,000 - 29,365,000- 2.08% 1,044 20064,465,000 18,305,000 5,180,000 - 27,950,000- 1.88% 1,002 20073,875,000 17,255,000 4,280,000 - 25,410,000- 1.63% 911 20083,275,000 20,560,000 5,690,000 - 29,525,000- 1.71% 973 20092,665,000 17,795,000 4,925,000 - 25,385,000- 1.61% 852 20102,025,000 15,010,000 4,005,000 2,350,000- 23,390,0001.42% 777 20111,385,000 13,720,000 3,260,000 2,210,000- 20,575,0001.19% 681 2012700,000 12,795,000 2,590,000 2,075,000- 18,160,0001.01% 594 2013 17,470,000- 6,920,000 1,940,000- 26,330,0001.46% 861 Sources: The data for this table has been provided from City financial maintenance documents. Note: More detailed information for Population and Personal Income can be viewed in table 15 of the statistical section. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last ten fiscal years Less: AmountsPercentage of GeneralAvailable inNet GeneralEstimated ObligationDebt ServiceObligationMarket ValuePer BondsFundDebtof PropertyCapita 2004$ 10,450,000$ 5,903,577$ 4,546,4230.25%$ 157 2005 5,045,000 1,054,230 0.20%1423,990,770 20064,465,000 1,104,749 3,360,251 0.17%120 20073,875,000 1,163,306 2,711,694 0.13%97 20083,275,000 1,198,234 2,076,766 0.09%68 20092,665,000 1,204,714 1,460,286 0.07%49 20102,025,000 1,196,115 828,885 0.04%28 20111,385,000 1,191,405 193,595 0.01%6 2012700,000 1,177,528 (477,528) -0.03%- 2013- - - 0.00%- Sources: The data for this table has been provided from City financial maintenance documents. Note: More detailed information for Population can be viewed in table 15 of the statistical section. Note: More detailed information for Estimated Property Values can be viewed in table 6 of the statistical section. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 12 COMPUTATION OF DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT December 31, 2013 EstimatedEstimated Share DebtPercentageof Overlapping 1 Debt Governmental UnitOutstandingApplicable Overlapping debt: School Districts: No. 11 Anoka94,870,000$ 1.15%1,091,005$ No. 279 Osseo95,920,000 3.00%2,877,600 No. 281 Robbinsdale155,710,000 4.26%6,633,246 No. 286 Brooklyn Center29,785,000 100.00%29,785,000 Metropolitan Council219,230,000 0.46%1,008,458 Hennepin County735,600,000 1.02%7,503,120 Hennepin Regional RR Authority37,675,000 1.38%519,915 Hennepin County Park Reserve District74,395,000 1.38%1,026,651 Total overlapping debt1,443,185,000$ 50,444,995 City of Brooklyn Center direct debt 24,390,000 Total direct and overlapping debt$74,834,995 Sources: The majority of the data for this table has been provided by Hennepin County. Sources: The remaining data for this table was provided by Anoka County and School District No. 11. Note: More detailed information for the City's outstanding debt can be viewed in table 10 of the statistical section. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Note: The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining the the portion of each entity's tax capacity that is within the City's boundaries, and dividing it by the entity's total tax capacity. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION Last ten fiscal years 2004200520062007 Taxable Market Value1,625,154,800$ 1,800,176,800$ 1,960,952,700$ 2,112,997,900$ Debt Limit Percentage2.00%2.00%2.00%2.00% Debt Limit32,503,096 36,003,536 39,219,054 42,259,958 Total net debt applicable to limit4,546,423 3,990,770 3,360,251 2,711,694 Legal debt margi$ 32,012,76627,956,673$ 35,858,803$ 39,548,264$ n Total net debt applicable to the limit as a percentage of debt limit13.99%11.08%8.57%6.42% Sources: The data for this table has been provided by Hennepin County and from City financial maintenance documents. Table 13 200820092010201120122013 $ 2,087,517,8002,189,212,600$ 1,891,591,400$ 1,692,594,600$ 1,468,159,885$ 1,338,405,415$ 3.00%3.00%3.00%3.00%3.00%3.00% 62,625,53465,676,378 56,747,742 50,777,838 44,044,797 40,152,162 1,460,2862,076,766 828,885 193,595 - - $ 61,165,24863,599,612$ 55,918,857$ 50,584,243$ 44,044,797$ 40,152,162$ 3.16%2.33%1.46%0.38%0.00%0.00% CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 14 PLEDGED-REVENUE COVERAGE Last ten fiscal years Special Assessment Bonds Special AssessmentDebt Service CollectionsPrincipalInterestCoverage 2004$ 1,410,344$ 1,005,000$ 218,457115.28% 2005 1,058,557 990,000 197,76089.12% 2006 1,035,961 1,000,000 167,28488.75% 2007 884,261 900,000 162,48683.23% 2008 816,798 980,000 145,12172.60% 2009 1,173,435 765,000 166,946125.91% 2010 750,168 920,000 167,68668.97% 2011 747,145 745,000 136,89084.72% 2012 561,618 670,000 111,46071.87% 2013 485,034 590,000 88,87071.45% Tax Increment Bonds Tax IncrementDebt Service CollectionsPrincipalInterestCoverage 2004$ 3,606,130$ 1,775,000$ 286,867174.90% 2005 3,576,209 770,000 729,740238.46% 2006 1,609,994 1,000,000 887,08085.32% 2007 1,707,470 1,050,000 847,23690.00% 2008 1,906,053 1,030,000 804,491103.90% 2009 2,356,641 2,765,000 922,71163.91% 2010 1,794,442 2,785,000 783,96150.28% 2011 1,321,205 1,290,000 702,53066.31% 2012 2,388,702 925,000 651,744151.50% 2013 2,766,160 1,365,000 598,107140.91% Storm Sewer Revenue Bonds Storm DrainageLess:Net UtilityOperatingAvailableDebt Service ChargesExpensesRevenuePrincipalInterestCoverage 2004$ 1,276,778$ 756,593$ 520,185$ 220,000$ 18,250218.34% 20051,293,8411,086,600207,241230,000 6,21087.74% Utility Revenue Bonds (BAB) Water and Sanitary SewerLess:Net UtilityOperatingAvailableDebt Service ChargesExpensesRevenuePrincipalInterestCoverage 2010$ 5,249,263$ 4,934,032$ 315,231$ -$ 68,081463.02% 2011 5,421,679 5,011,775 409,904 140,000 83,438183.45% 2012 5,889,769 5,084,012 805,757 135,000 81,562372.07% 2013 5,951,703 5,335,477 616,226 135,000 80,188286.37% Sources: The data for this table has been provided from City financial maintenance documents. Note: The Storm Sewer Revenue bonds were retired in 2005. Determined it was not necessary to show data beyond that year. Note: The Utility Revenue bonds were issued in 2010. Determined it was not necessary to show data prior to that year. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 15 DEMOGRAPHIC AND ECONOMIC STATISTICS Last ten fiscal years School Enrollments Per CapitaNo. 286 No. ofPersonalPersonalUnemploymentMedianNo. 11No. 279No. 281Brooklyn PopulationHouseholdsIncomeIncomeRateAgeAnokaOsseoRobbinsdaleCenter 11,350$1,400,100,3554.2% 2004 29,005$ 48,271 41,592 21,620 16,196 1,691 11,1861,408,819,5904.6% 2005 28,137 50,070 41,596 21,792 13,368 1,679 11,1421,484,751,7154.9% 2006 27,901 53,215 41,310 22,071 13,194 1,705 11,2071,554,866,4125.6% 2007 27,907 55,716 34.3 40,656 21,859 12,891 1,763 11,2501,723,775,2207.0% 2008 30,330 56,834 34.4 40,152 21,001 12,526 2,012 11,1751,572,835,2208.9% 2009 29,810 52,762 33.6 39,822 20,903 11,947 2,250 10,7561,649,036,9128.0% 2010 30,104 54,778 31.3 39,106 20,835 12,036 2,311 10,7911,734,223,0687.2% 2011 30,204 57,417 32.8 38,686 20,686 12,062 2,109 10,8121,800,452,9626.4% 2012 30,569 58,898 33.1 38,403 20,623 12,181 2,177 10,8121,800,452,9625.1%20,689 2013 30,569 58,898 33.1 38,183 12,266 2,182 Sources: Population & Households - Metropolitan Council Personal Income - Calculated by the City Per Capita Personal Income - US Department of Commerce; Bureau of Economic Analysis Unemployment Rate - Minnesota Department of Employment and Economic Development Median Age - US Department of Commerce, Bureau of the Census School Enrollment - Minnesota Department of Education Note: Median age was added in 2013. Information prior to 2007 was not available. This will be updated on a go-forward basis. Note: Some data was not yet available for 2013. In those instances, 2012 data was shown for the current year. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 16 PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 20132004 Percentage ofPercentage of Total CityTotal City EmployerEmployeesRankEmploymentEmployeesRankEmployment Promeon Inc., A Division of Medtronic1,100 17.11%300 32.05% Independent School District #286380 22.46% Luther Auto Group303 31.96% Wal-Mart300 41.94% Presbyterian Homes, Marantha Care Center205 51.33% Caribou Coffee Headquarters200 61.29% University of Minnesota Physicians200 71.29% City of Brooklyn Center151 80.98% TCR Corporation150 90.97%135 70.92% Target131 100.85%200 41.37% Brookdale Center 111.64%1,700 Graco, Inc. 25.70%832 Cub Foods 51.23%180 Ault, Inc. 61.03%150 Cass Screw Machine Products123 80.84% Best Buy 90.75%110 Kohl's 100.68%100 Totals3,120 20.17%3,830 26.23% Sources: The data for this table has been extracted from Official Statements for bonds issued in 2004 and 2013. CITY OF BROOKLYN CENTER, MINNESOTA STATISTICAL SECTION (UNAUDITED) Table 17 FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Last ten fiscal years 2004200520062007200820092010201120122013 General government Administrative 6.0 6.0 6.0 6.0 7.0 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 5.0 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 3.5 Government buildings 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 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 23.0 23.0 23.0 23.0 23.0 23.0 23.0 23.0 22.0 22.5 Public safety Police Officers 42.0 42.0 42.0 43.0 46.0 46.0 47.0 48.0 48.0 48.0 Civilians12.0 15.0 15.0 15.0 12.0 12.0 12.0 12.0 12.0 12.0 Fire 1.0 1.0 2.0 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 5.0 Total public safety 62.0 62.0 63.0 61.0 66.0 69.0 70.0 71.0 70.0 71.0 Public works Engineering 7.0 7.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0 7.0 Streets 10.0 9.0 10.0 10.0 11.0 10.0 10.0 10.0 9.0 9.0 Total public works 17.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 15.0 16.0 Parks and recreation Administration 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 Community center3.0 3.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 3.0 Park maintenance 8.0 8.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 Total park and recreation 17.0 17.0 16.0 16.0 16.0 16.0 16.0 16.0 14.0 14.0 Economic development 4.0 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 4.0 4.0 4.0 4.0 4.0 4.0 5.0 Golf course 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Earle Brown Heritage Center 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 Water 5.0 5.0 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 Sanitary sewer 2.0 2.0 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 Storm sewer 2.4 - 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 150.0150.0151.0150.0155.0158.0159.0160.0156.0159.5 Sources: The data for this table has been extracted from the respective years budget document.