HomeMy WebLinkAbout2014 06-03 CCP Joint Session with Financial CommissionAGENDA
CITY COUNCIL/FINANCIAL COMMISSION JOINT WORK SESSION
June 3, 2014 (Tuesday)
6:30 P.M.
Council Chambers
City Hall
1.Call to Order
2.Approval of Agenda
3.Presentation of Audit Report and Management Letter
4.Council/Commission Questions
5.Staff Overview of Comprehensive Annual Financial Report
6.Council/Commission Questions
7.Miscellaneous
8.Adjourn
M7AMORANDUM COUNCIL WORK SESSION
DATE: June 3, 2014
TO: Curt Boganey, City Manager
FROM: Nathan Reinhardt, Finance Director 14%.
SUBJECT: Joint Work Session for Review of the City of Brooklyn Center's 2013
Comprehensive Annual Financial Report (CAFR)
Recommendation:
No action will be requested. Each year the City prepares a Comprehensive Annual Financial
Report (CAFR) in accordance with City charter and State statutory regulations. As required by
those regulations, the City is annually audited by an independent auditing firm. This session will
be held to provide an overview of the 2013 Comprehensive Annual Financial Report (CAFR)
and Management Report to the City Council and the Financial Commission. James Eichten,
from Malloy, Montague, Karnowski & Radosevich (MMKR) will present this information and
will be available to respond to questions.
Background:
Enclosed please find the 2013 CAFR, Management Report and Special Purpose Report. The
CAFR sets forth the City's financial position, results of operations, cash flows and all disclosures
necessary to enable maximum understanding of the City's financial affairs. Responsibility for
both the accuracy and completeness of the presented data and the fairness of the presentation,
including all disclosures, rests with the City. A copy of the 2013 CAFR will also be available on
the Fiscal & Support Services page of the City's website.
I would like to point out several items that you might find particularly interesting:
1.Page 10: The Certificate of Achievement for Excellence in Financial Reporting for the
2012 CAFR,
2.Pages 1-7: Letter of Transmittal, which provides a profile of the City and information of
the City's long-tem financial planning, major initiatives and financial policies.
3.Pages 15-25: The Management Discussion and Analysis, which is the Executive
Summary of the City's financial statements.
4.Page 30: Balance Sheet shows the General Fund balance at year-end was $12,382,713,
which is an increase of $1,695,817 from 2012. Unassigned/Assigned General Fund
balance represents 64% of 2014 General fund budgeted expenses.
5.Page 32: The Statement of Revenues, Expenditures, & Changes in Fund Balances
provides the net change in fund balances of the governmental funds
6.Pages 40-41: The Statement of Cash Flows shows the changes in cash balances of all the
enterprise and utility funds.
7. Management Report (Issued under a separate cover): Includes summarized and
comparison information of the City's funds and financial information.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
.for all people and preserves the public trust
MEMO NDUM - COUNCIL WORK SESSION
8. Special Purpose Audit Reports (Issued under a separate cover): Includes results of the
audit of federal awards, internal controls and legal compliance.
MMKR audited the City's financial statements and issued an unmodified opinion, which is
commonly referred to as a "clean audit opinion". This means that, in the auditor's opinion, the
financial statements conform with applicable accounting standards. In addition to formulating an
opinion on the City's financial statements, the auditors reviewed the City's internal controls,
legal compliance and financial management practices. Those results were included in the
Special Purpose Audit Reports which did contain two legal compliance findings. These findings
have been addressed and a management response has been provided to each of these findings in
the report.
Budget Issues:
The 2013 CAFR conveys the fiscal condition of the City as of December 31, 2013 and lays the
groundwork for understanding the financial resources available to the City when planning for the
future.
Strategic Priorities:
Financial Stability
Itfission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
MIv\KR
CERTIFIED PUBLIC
ACCOUN1ANTS
City of Brooklyn Center
Audit Report
Year Ended December 31, 2013
Malloy, Montague, Karnowski,
Radosevich, & Co., P.A.
by
James H. Eichten, CPA
MM KR
Auditor's Role
CERTIFIED PUBLIC
ACCOUNTANTS
O Opinion on Financial Statements
—Financial statements are fairly presented in accordance with U.S. GAAP
O Testing of Internal Controls and Compliance
—Internal controls over financial reporting
—Compliance with laws and regulations related to financial reporting
t) State Laws and Regulations
—Compliance with Minnesota laws and regulations
O Single Audit of Federal Awards
—Schedule of federal awards
—Internal controls over Federal award programs
—Compliance with laws and regulations related to Federal programs
1
M KR
Management Report
CERTIFIED PUBLIC
ACCOUNTANTS
Audit Summary
—Planned Scope and Timing of Audit
—Audit Opinions and Findings
MN KR Audit Opinions and Findings
CERTIF I ED P 1111.1C
ACCOUNTANTS
O Financial Report
—Unmodified or Clean Opinion
O Internal Controls over Financial Reporting
—No Findings
O Single Audit of Federal Awards
—No Findings
O Legal Compliance Audit Findings
—Withholding Affidavit
—Timely Payment of Invoices
2
M
MIK KR Management Report
CERTIFIED PUBLIC
ACCOUNTANTS
0 Audit Summary
—Planned Scope and Timing
—Implementation of GASB Statement #65
—Accounting Estimates
—Uncorrected Misstatements
—Other Required Communications
MN KR
Management Report
CERTIFIED PUBLIC
ACCOUNTANTS
0 Audit Summary
0 Governmental Funds Overview
3
Taxable Market Value
$2,500,000,000
$2,000,000,000
$1,500,000,000
$1,000,000,000
$500,000,000 II "IIIII
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
MM R Tax
CERTIFIED
ACCOUNTANTS
PUBLIC
Rates
Rates expressed as a percentage of net taxcapacity
All Cities
State-Wide
Seven-County
Metro Area
City of
Brooklyn Center
2012 2013 2012 2013 2012 2013
ANerage tax rate
City 46.3 48.8
County 46.8 48.5
School 27.3 28.5
Special taxing 6.8 7.2
43.4
45.0
28.5
8.7
46.1
47.1
30.3
9.4
64.4
48.2
34.7
11.0
71.1
49.5
39.1
11.3
Total 127.2 133.0 125.6 132.9 158.3 170.9
4
j\/\R Governmental Funds Revenue per Capita
With State-Wide Averages by Population ClassA
( IRTIFIED PUBI IC
ACCOUN 1 ANTS
State-Wide City of Brooklyn Center
Year December 31, 2012 2011 20122013
Population 2,500-10,000 10,000-20,000 20,000-100,000 30,204 30,569 30,569
Property taxes $ 414 $ 382 $ 416 $ 444 $ 471 $ 494
Tax increments 32 44 46 84 88 103
Franchise fees and other taxes 29 36 30 50 5050
Special assessments 60 54 62 65 42 61
Licenses and permits 24 24 35 32 2835
Intergovernmental revenues 278 279 138 163 118103
Charges for services 104 81 83 37 35 35
Other 66 58 50 26 36 22
Total revenue $ 1,007 $ 958 $ 860 $ 901 $ 868 $ 903
M KR Governntental Funds Expenditures per Capita
With State-Wide Averages by Population Class
CERTIFIED PUBLIC
ACCOUN 1 ANTs State-Wide City of Brooklyn Center
Year December 31, 2012 2011 2012 2013
Population 2,500-10,000 10,000-20,000 20,000-100,000 30,20430,569 30,569
Current
General government $ 127 $ 101 $ 84 $ 114 S 116 $ 119
Public safety 234 229 241 287297 298
Street maintenance 114 105 9279 69 78
Parks and recreation 82 95 86 8083 81
All other 73 75 92 62 162 87
$ 630 $ 605 S 595 S 622 S 727 $ 663
Capital outlay
and construction 315 $ 313 $ 221 $ 184 S 23 S 283
Debt service
Principal $ 187 $ 135 $ 103 $ 98 S 87 $ 87
Interest and fiscal 58 46 39 30 26 29
S 245 $ 181 S 142 S 128 S 113 S 116
5
i\A R Governmental Funds Change in Fund Balance
CERTIFIED PUBLIC
ACCOUN1ANTS Fund Balance
as of December 31,Increase
2013 2012 (Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable $ 26,139 $ 88,952 $ (62,813)
Restricted 12,037,147 12,912,357 (875,210)
Committed 7,579,6883,651,9953,927,693
Assigned 2,754,124 2,754,124
Unassigned 8,169,955 7,172,943997,012
Total— governmental funds $ 30,567,053 $ 23,826,247 5 6,740,806
Total by fund
General $ 12,382,713 $ 10,686,896 $ 1,695,817
Tax Increment District No. 3 4,051,8162,530,103 1,521,713
Infrastructure Construction 970,142 (2,005,796)2,975,938
Nonmajor funds 13,162,382 12,615,044 547,338
Total — governmental funds $ 30,567,053 $ 23,826,247$ 6,740,806
General Fund Financial Position
Year Ended December 31,
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$—
••
„i .rT •.1 E. ••L • • I1 • IN • K t, • MIME • I•• NM h EN • • • I
=I Fund Balance
Mill Cash and Investments (Net of Interfund Borrowing)
—Expenditures
6
General Fund Revenue by Source
Year Ended December 31,
$16,500,000
$15,000,000
$13,500,000
$12,000,000
$10,500,000 —
$9,000,000 —
$7,500,000 —
$6,000,000 —
$4,500,000 —
$3,000,000 —
$1,500,000 —
$—
Taxes Intergovernmental Other
02009 12010 02011 0 2012 12013
General Fund Expenditures by Function
Year Ended December 3 1,
$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
$—
General Pi blic Safety Public Works Parks and Other
Government Recreation
02009 i2010 02011 02012 02013
7
MN KR
IV1f nagement Report
RTI Fl ED PUBLIC
ACCOUNTANTS
0 Audit Summary
0 Governmental Funds Overview
Enterprise Funds Overview
M Enterprise Funds Change in Financial Position
CERTIFIED PUBLIC Net PositionA C C 0 U N I A N T S as of December 31,Increase
2013 2012 (Decrease)
Net position of enterprise funds
Total by classification
Net investment in capital assets $ 42,466,488 $ 42,406,210 $ 60,278
Unrestricted 12,546,185 12,202,397 343,788
Total— enterprise funds $ 55,012,673 $ 54,608,607 $ 404,066
Total by fund
Municipal Liquor $ 2,685,412 $ 2,490,774 $ 194,638
Golf Course 657,068 753,672 (96,604)
Earle Brown Heritage Center 6,065,638 6,604,837 (539,199)
Water Utility 11,709,616 11,386,122 323,494
Sanitary Sewer Utility 13,204,689 12,909,163 295,526
Storni Drainage Utility 19,874,022 19,816,537 57,485
Street Light Utility 752,477 592,612 159,865
Recycling Utility 63,751 54,890 8,861
Total — enterprise funds $ 55,012,673 $ 54,608,607 $ 404,066
8
Water Fund
Year Ended December 31,
$2,500,000
$2,250,000
$2,000,000
$1,750,000
$1,500,000
$1,250,000
$1,000,000
$750,000
$500,000
$250,000
$(250,000)
2005 2006 2007 2008 2009
=Operating Revenue
Operating Expenses
2010 2011 20122013
Project Costs
—Operating Income (Loss), Excluding Project Costs
I I
2005 2006 2007 2008 2009 2010 2011 2012 2013
Sales and User Fees
MIN Opera ting Expenses
Cost of Sales
—Operating Income (Loss)
Earle Brown Heritage Center Fund
Year Ended December 31,
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$—
$(500,000)
$(1,000,000)
9
Golf Course Fund
Year Ended December 3 1,
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$—
$(50,000)
$(100,000)
$(150,000)
r
2005 2006 2007 2008 2009 2010 2011 2012 2013
Operating Revenue
= Operating Expenses
Opera ting Income (Loss)
MN KR
Management 1eport
CERTIFIED PUBLIC
ACCOUNTANTS
0 Audit Summary
OGovernmental Funds Overview
OEnterprise Funds Overview
OGovernment-wide Financial Statements
0 Legislative Updates
0 Accounting and Auditing Updates
1 0
M KR
Summary
CERTIFIED PUBLIC
ACCOUNTANTS.
0 Clean Opinion on Financial Statements
0 Single Audit of Federal Awards
0 Two Findings Reported
0 Overall Improving Financial Condition in
City's General Fund
0 Continued Ongoing Assessment of Financial
Projections and Results including General,
Other Operational and Enterprise Fund
Activities
11
5/29/2014
I City of Rrookiyn Center
2013 Comprehensive Annual Financial Report
June 3 rd , 2014
Genera. Fund
Added a total of $1,695,817 to fund balance
General Fund Assigned and Unassigned fund balance
represents 66.9% of next year's budgeted expenditures
• Fund Balance >52% will be transferred to the capital
projects fund ($2,754,124)
1
Genera Fund Revenues
Revenues exceeded budget by $1,236,721
A114111 mount
Excess tax increments $424,000
Property tax revenue 126,000
Lodging tax 56,000
Building permits 321,000
Rental Licenses 42,000
FEMA Storm Recovery Funds 43,000
Delinquent/deferred assessments 161,000
Investment income (50,000)
Ge riera Fund Expenses
Expenses were under budget by $412,106
ignif get Variances Amo
Police - Personnel $298,000
Police - Services & Charges 128,000
Finance - Personnel 75,000
Government Buildings - Maintenance and Services (136,000)
5/29/2014
2
Enterprise Funds
Golf Course
Operating loss of $96,979 compared to $64,455 in 2012
Opened May 2013 compared to late March 2012
EBHC
•Operating loss of $559,707 compared to $497,101 in 2012
•Decrease in revenues of $186,000 (63 fewer events)
erprise-
Municipal Liquor $86,113
Golf Course 277
EBHC (15,258)
Funds
ge in Cash
Water ($42,182)
Sanitary Sewer (154,376)
Storm Drainage 239,264
Street Light (10,415)
Recycling 328
•Decreases in Water/Sanitary Sewer cash balances a result of
infrastructure spending for Kylawn Area improvements
5/29/2014
3
Other
Net investment loss of $108,661
Net investment loss includes:
•Investment income of $121,210
•Unrealized loss on investments at of $229,871
Unrealized (paper loss) due to interest rate fluctuations
Investments anticipated to be held to maturity
Kylawn Area infrastructure improvements
$5,939,314 added to construction in progress
Central Garage
Added/replaced 12 pieces of equipment ($882,846)
Including: Caterpillar loader, mowers, police vehicles, and multi-purpose
dump/plow truck
Issued $10,960,000 in bonds
$6,040,000 G.O. Tax Increment Bonds (Final Maturity Date 2/1/2022)
- $4,920,000 G.O. Improvement Bonds (Final Maturity Date 2/1/2024)
Paid $2,790,000 of principal on previously issued bonds
Retired the 2004 G.O. Police and Fire Building Refunding Bonds
Retired the 2003 G.O. Improvement Bonds
Purchase of Brookdale Square and additional properties on
Brooklyn Boulevard
City/EDA at year-end owned $14.3 million in assets held for resale
5/29/2014
4
Questons
5/29/2014
5
CITY OF BROOKLYN CENTER
HENNEPIN COUNTY, MINNESOTA
Special Purpose Audit Reports on
Single Audit,
Internal Controls, and
Compliance With Laws and Regulations
Year Ended
December 31, 2013
THIS PAGE INTENTIONALLY LEFT BLANK
Page
Independent Auditor’s Report on the Schedule of Expenditures of Federal Awards
Required by OMB Circular A-1331–2
Schedule of Expenditures of Federal Awards3
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards 4–5
Independent Auditor’s Report on Compliance for Each Major Federal Program
and Report on Internal Control Over Compliance Required by OMB Circular A-1336–7
Independent Auditor’s Report on Minnesota Legal Compliance8
Schedule of Findings and Questioned Costs9–11
Table of Contents
CITY OF BROOKLYN CENTER
HENNEPIN COUNTY, MINNESOTA
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
INDEPENDENT AUDITOR’S REPORT ON THE SCHEDULE OF EXPENDITURES
OF FEDERAL AWARDS REQUIRED BY OMB CIRCULAR A-133
To the City Council and Management
City of Brooklyn Center, Minnesota
We have audited, 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, 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. We issued our report thereon dated May 8, 2014, which contained an unmodified opinion on
those financial statements.
Audit standards referred to in the previous paragraph 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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Schedule of Expenditures of Federal
Awards is presented for purposes of additional analysis as required by the U.S. Office of Management
and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations,
and is not a required part of the basic financial statements of the City. The Schedule of Expenditures of
Federal Awards is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The 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 Schedule of Expenditures of
Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
(continued)
-2-
The purpose of this report on the Schedule of Expenditures of Federal Awards Required by
OMB Circular A-133 is solely to describe the scope of our testing of the Schedule of Expenditures of
Federal Awards and the results of that testing based on our audit. Accordingly, this report is not suitable
for any other purpose.
Minneapolis, Minnesota
May 8, 2014
FederalFederal
CFDA No.Expenditures
U.S. Department of Housing and Urban Development
Passed through Hennepin County
Community Development Block Grants – Entitlement Grants 14.2181,042,839$
Community Development Block Grants – State’s Program and
Non-Entitlement Grants in Hawaii 14.228 379,524
U.S. Department of Justice
Direct program
Bulletproof Vest Partnership Program 16.607 7,585
ARRA – Public Safety Partnership and Community Policing Grants 16.710 29,010
Passed through Hennepin County
Edward Byrne Memorial Justice Assistance Grant Program 16.738 35,661
U.S. Department of Transportation
Passed through the City of Brooklyn Park
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 21,808
U.S. Department of Homeland Security
Passed through the Minnesota Commissioner of Public Safety
Disaster Grants – Public Assistance (Presidentially Declared Disasters)97.036 43,370
Total federal awards 1,559,797$
Note 1:
Note 2:
TheScheduleofExpendituresofFederalAwardsispreparedontheaccrualbasisofaccountinginaccordancewith
therequirementsofOMBCircularA-133,AuditsofStates,LocalGovernments,andNonprofitOrganizations.
Therefore,theamountspresentedinthisschedulemaydifferfromtheamountspresentedin,orusedinthe
preparation of, the City’s basic financial statements.
Allpass-throughentitieslistedaboveusethesameCFDAnumbersasthefederalgrantorstoidentifythesegrants,
and have not assigned any additional identifying numbers.
CITY OF BROOKLYN CENTER
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2013
Federal Grantor/Pass-Through Grantor/Program Title
-3-
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-4-
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council and Management
City of Brooklyn Center, Minnesota
We have audited, 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, 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, and have issued our report thereon dated May 8, 2014.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention to those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
(continued)
-5-
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control and compliance. Accordingly,
this report is not suitable for any other purpose.
Minneapolis, Minnesota
May 8, 2014
-6-
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133
To the City Council and Management
City of Brooklyn Center, Minnesota
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM
We have audited the City of Brooklyn Center, Minnesota’s (the City) compliance with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that could have a direct and material effect on each of the City’s major federal
programs for the year ended December 31, 2013. The City’s major federal programs are identified in the
summary of audit results section of the accompanying Schedule of Findings and Questioned Costs.
MANAGEMENT’S RESPONSIBILITY
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City’s compliance.
OPINION ON EACH MAJOR FEDERAL PROGRAM
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended December 31, 2013.
(continued)
-7-
REPORT ON INTERNAL CONTROL OVER COMPLIANCE
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to on the previous page. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program and to test and report on internal control over
compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on
the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Minneapolis, Minnesota
May 8, 2014
-8-
INDEPENDENT AUDITOR’S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the City Council and Management
City of Brooklyn Center, Minnesota
We have audited, 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, 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, and have issued our report thereon dated May 8, 2014.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the Office of
the State Auditor pursuant to Minnesota Statute § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered
all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City failed to
comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions,
except as described in the Schedule of Findings and Questioned Costs as items 2013-001 and 2013-002.
However, our audit was not directed primarily toward obtaining knowledge of such noncompliance.
Accordingly, had we performed additional procedures, other matters may have come to our attention
regarding the City’s noncompliance with the above referenced provisions.
The City’s responses to the legal compliance findings identified in our audit have been included in the
Schedule of Findings and Questioned Costs. The City’s responses were not subject to the auditing
procedures applied in our audit of the financial statements and, accordingly, we express no opinion on
them.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
Minneapolis, Minnesota
May 8, 2014
CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs
Year Ended December 31, 2013
-9-
A. SUMMARY OF AUDIT RESULTS
This summary is formatted to provide federal granting agencies and pass-through agencies answers to
specific questions regarding the audit of federal awards.
Financial Statements
What type of auditor’s report is issued?X Unmodified
Qualified
Adverse
Disclaimer
Internal control over financial reporting:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?Yes X None reported
Noncompliance material to the financial statements noted?Yes X No
Federal Awards
Internal controls over major federal award programs:
Material weakness(es) identified?Yes X No
Significant deficiency(ies) identified?Yes X None reported
Type of auditor’s report issued on compliance for major programs?X Unmodified
Qualified
Adverse
Disclaimer
Any audit findings disclosed that are required to be reported
in accordance with Section 510(a) of OMB Circular A-133?Yes X No
Programs tested as major programs:
Program or Cluster
U.S. Department of Housing and Urban Development
Community Development Block Grants – Entitlement Grants14.218
Community Development Block Grants – State’s Program and
Non-Entitlement Grants in Hawaii14.228
Threshold for distinguishing between type A and B programs:
Does the auditee qualify as a low-risk auditee?X YesNo
CFDA No.
300,000$
CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2013
-10-
B. FINDINGS – FINANCIAL STATEMENT AUDIT
None.
C. FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT
None.
D. FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT
2013-001 Withholding Affidavit
Criteria – Minnesota Statute § 270C.66.
Condition – Before making final settlement with any contractor under a contract requiring the
employment of employees for wages by said contractor or subcontractors, the City must obtain
a certificate by the Commissioner of Revenue that the contractor or subcontractor has complied
with the withholding requirements of Minnesota Statute § 290.92 (either Form IC-134 or a
Contractor’s Withholding Affidavit). The City did not obtain the required certificate for two
projects completed in 2013 prior to the final settlement being paid.
Context – Two out of three contracts tested were not in compliance. This is a current year
finding.
Cause – This was an oversight by city personnel.
Effect – The City did not obtain the required documentation of either a withholding affidavit or
Commissioner of Revenue Form IC-134.
Recommendation – We recommend that the City review purchasing procedures and obtain the
required documentation prior to making the final payment on future contracts.
Management’s Response – We have reviewed our process and determined that we were in
error by not obtaining the required withholding certificate (Form IC-134) for the Earle
Brown/Opportunity Street Lighting project and the Evergreen Park Athletic Field Lighting
project. Staff was not fully aware that this is mandated on all projects and has since obtained
the required documentation (Form IC-134) for these contracts. Additionally, we have revised
our process and checklist to ensure we do not miss this on future projects.
CITY OF BROOKLYN CENTER
Schedule of Findings and Questioned Costs (continued)
Year Ended December 31, 2013
-11-
D. FINDINGS – MINNESOTA LEGAL COMPLIANCE AUDIT (CONTINUED)
2013-002 Claims and Disbursements
Criteria – Minnesota Statute § 471.425, Subd. 2.
Condition – Minnesota Statutes require cities to pay each vendor obligation according to the
terms of each contract or within 35 days after the receipt of the goods or services or the invoice
for the goods or services. If such obligations are not paid within the appropriate time period, the
City must pay interest on the unpaid obligations at the rate of 1.5 percent per month or part of a
month. For two disbursements selected for testing, the City did not pay the obligation within
the required time period, and did not pay interest on the unpaid obligation.
Context – Two out of forty disbursements tested were not in compliance. This is a current year
and prior year finding.
Cause – This was an oversight by city personnel.
Effect – Two payments made to vendors were not paid within the timeframe as required by
state statute, and the vendors were not paid interest to which they were entitled.
Recommendation – We recommend that the City review claims and disbursement payment
procedures in place to ensure future compliance with this statute.
Management’s Response – The City will review claims and disbursement payment procedures
to ensure future compliance with this statute. In these two instances, the Finance Department
did not receive the invoices from the departments within the time period required by Minnesota
Statutes. The Finance Department will inform departments about the importance of providing
invoices and documentation to the Finance Department on a timely basis. The City is also in the
process of reviewing software that would create an automated workflow for accounts payable.
An automated workflow would allow the accounts payable clerk to scan invoices when
received and route them electronically to departments. One of the benefits of this system is that
staff could determine where invoices are throughout all steps of the process. Vendors would
also be encouraged to send invoices directly to the Finance Department, instead of individual
departments, and electronic (emailed) invoices would also be encouraged.
E. SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS – MAJOR FEDERAL AWARD
PROGRAMS AUDIT
None.
Management Report
for
City of Brooklyn Center, Minnesota
December 31, 2013
THIS PAGE INTENTIONALLY LEFT BLANK
To the City Council and Management
City of Brooklyn Center, Minnesota
We have prepared this management report in conjunction with our audit of the City of Brooklyn Center,
Minnesota’s (the City) financial statements for the year ended December 31, 2013. The purpose of this
report is to provide comments resulting from our audit process and to communicate information relevant
to city finances in Minnesota. We have organized this report into the following sections:
Audit Summary
Governmental Funds Overview
Enterprise Funds Overview
Government-Wide Financial Statements
Legislative Updates
Accounting and Auditing Updates
We would be pleased to further discuss any of the information contained in this report or any other
concerns that you would like us to address. We would also like to express our thanks for the courtesy and
assistance extended to us during the course of our audit.
The purpose of this report is solely to provide those charged with governance of the City, management,
and those who have responsibility for oversight of the financial reporting process comments resulting
from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is
not suitable for any other purpose.
Minneapolis, Minnesota
May 8, 2014
THIS PAGE INTENTIONALLY LEFT BLANK
-1-
AUDIT SUMMARY
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the City Council, administration, or those charged
with governance of the City.
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
STATES OF AMERICA, GOVERNMENT AUDITING STANDARDS, AND THE U.S. OFFICE OF
MANAGEMENT AND BUDGET (OMB) CIRCULAR A-133
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 as of and for the year ended
December 31, 2013, and the related notes to the financial statements. Professional standards require that
we provide you with information about our responsibilities under auditing standards generally accepted in
the United States of America, Government Auditing Standards, and OMB Circular A-133, as well as
certain information related to the planned scope and timing of our audit. We have communicated such
information to you verbally and in our audit engagement letter. Professional standards also require that we
communicate the following information related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINION AND FINDINGS
Based on our audit of the City’s financial statements for the year ended December 31, 2013:
We have issued an unmodified opinion on the City’s basic financial statements.
We reported no deficiencies in the City’s internal control over financial reporting that we
considered to be material weaknesses.
The results of our testing disclosed no instances of noncompliance required to be reported under
Government Auditing Standards.
We reported that the Schedule of Expenditures of Federal Awards is fairly stated, in all material
respects, in relation to the basic financial statements.
The results of our tests indicate that the City has complied, in all material respects, with the
requirements that could have a direct and material effect on each major federal program.
We reported no deficiencies in the internal controls over compliance and its operation that we
consider to be material weaknesses in our testing of major federal programs.
We reported two findings based on our testing of the City’s compliance with Minnesota laws and
regulations. These findings relate to invoices that were not paid on a timely basis and withholding
affidavits that were not obtained for completed projects. These findings are further detailed in the
Schedule of Findings and Questioned Costs as items 2013-001 and 2013-002.
-2-
SIGNIFICANT ACCOUNTING POLICIES
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No
new accounting policies were adopted, and the application of existing policies was not changed during the
year. For the fiscal year ended December 31, 2013, the City implemented Governmental Accounting
Standards Board (GASB) Statement No. 65, “Items Previously Reported as Assets and Liabilities,” which
identifies specific items previously presented as assets that will now be presented as either deferred
outflows of resources or outflows (expenses/expenditures), and items previously reported as liabilities
that will now be presented as deferred inflows of resources or inflows (revenues).
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the financial statements were:
Depreciation – Management’s estimates of depreciation expense are based on the estimated
useful lives of the assets.
Net Other Post-Employment Benefit (OPEB) Liabilities – Actuarial estimates of the net OPEB
obligation is based on eligible participants, estimated future health insurance premiums, and
estimated retirement dates.
Compensated Absences – Management’s estimate is based on current rates of pay and sick leave
balances.
Land Held for Resale – Management’s estimates of this asset are based on net realizable value
(lower of cost or estimated sales price).
We evaluated the key factors and assumptions used to develop these accounting estimates in determining
that they are reasonable in relation to the basic financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
We proposed one uncorrected audit adjustment to the financial statements for the reporting of
governmental activities and business-type activities unamortized premiums and discounts on bond
proceeds totaling $198,657 and $18,800, respectively. Management has determined that the effects of
these items are immaterial, both individually and taken together, to each opinion unit’s financial
statements taken as a whole.
-3-
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor’s report. We are pleased to report that no such
disagreements arose during the course of our audit.
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter dated May 8, 2014.
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
OTHER MATTERS
With respect to the combining and individual fund statements and schedules accompanying the financial
statements, and the separately issued Schedule of Expenditures of Federal Awards, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the combining and individual fund statements and schedules and Schedule of Federal
Expenditures of Awards to the underlying accounting records used to prepare the basic financial
statements or to the basic financial statements themselves.
With respect to the introductory section and statistical section accompanying the financial statements, our
procedures were limited to reading this other information, and in doing so we did not identify any
material inconsistencies with the audited financial statements.
-4-
GOVERNMENTAL FUNDS OVERVIEW
This section of the report provides you with an overview of the financial trends and activities of the City’s
governmental funds, which includes the General Fund, special revenue, debt service, and capital project
funds. These funds are used to account for the basic services the City provides to all of its citizens, which
are financed primarily with property taxes. The governmental fund information in the City’s financial
statements focuses on budgetary compliance, and the sufficiency of each governmental fund’s current
assets to finance its current liabilities.
PROPERTY TAXES
Minnesota cities rely heavily on local property tax levies to support their governmental fund activities. In
recent years this dependence has been heightened, as economic conditions have resulted in reductions to
other revenue sources such as state aids and fees generated from property development or redevelopment.
Despite these conditions, property taxes levied by Minnesota cities increased a record low 0.9 percent
state-wide for 2012, and 2.27 percent for 2013. Almost one-third of Minnesota cities kept their 2013 levy
at the same level as the previous year, while another 13 percent reduced their levies for 2013.
Economic conditions have also had a profound effect on the tax base of Minnesota cities with state-wide
taxable market values declining each of the last four levy years, including average decreases of
8.8 percent and 4.5 percent for taxes payable in 2012 and 2013, respectively. There is optimism that this
trend is reversing, as the market value decline for the 2013 levy year was the smallest of the past four
years. However, since the assessed valuation used for levying property taxes is based on values from the
previous fiscal year (e.g. the market value for taxes payable in 2013 is based on estimated values as of
January 1, 2012), taxable market value improvement has lagged behind recent upturns in the housing
market and the economy in general.
The City’s taxable market value decreased 13.3 percent for taxes payable in 2012 and 8.8 percent for
taxes payable in 2013. The following graph shows the City’s changes in taxable market value over the
past 10 years:
$–
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
2004200520062007200820092010201120122013
Taxable Market Value
-5-
Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s
property classification system to each property’s market value. Each property classification, such as
commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total
tax capacity will change at a different rate than its total market value, as tax capacity is affected by the
proportion of the City’s tax base that is in each property classification from year-to-year, as well as
legislative changes to tax rates. The City’s tax capacity decreased 8.6 percent and 7.0 percent for taxes
payable in 2012 and 2013, respectively.
The following graph shows the City’s change in tax capacities over the past 10 years:
$–
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2004200520062007200820092010201120122013
Tax Capacity
The following table presents the average tax rates applied to city residents for each of the last two levy
years, along with comparative state-wide and metro area rates. The general increase in rates reflects both
the increased reliance of local governments on property taxes and the recent decline in tax capacities.
Rates expressed as a percentage of net tax capacity
2012201320122013 20122013
Average tax rate
City 46.3 48.8 43.4 46.1 64.4 71.1
County 46.8 48.5 45.0 47.1 48.2 49.5
School 27.3 28.5 28.5 30.3 34.7 39.1
Special taxing 6.8 7.2 8.7 9.4 11.0 11.3
Total 127.2 133.0125.6132.9 158.3 170.9
Brooklyn CenterMetro Area
Seven-CountyAll Cities
State-Wide
City of
Both the City’s portion and the total tax capacity rates for Brooklyn Center residents are significantly
higher than the state-wide and metro area averages the last two years. These rates are higher than average
due to a combination of factors, including lower than average property values, makeup of residential
properties, and the use of tax increments within the City.
-6-
GOVERNMENTAL FUND BALANCES
The following table summarizes the changes in the fund balances of the City’s governmental funds during
the year ended December 31, 2013, presented both by fund balance classification and by fund:
Increase
20132012(Decrease)
Fund balances of governmental funds
Total by classification
Nonspendable26,139$ 88,952$ (62,813)$
Restricted12,037,147 12,912,357 (875,210)
Committed7,579,688 3,651,995 3,927,693
Assigned2,754,124 – 2,754,124
Unassigned8,169,955 7,172,943 997,012
Total – governmental funds 30,567,053$ 23,826,247$ 6,740,806$
Total by fund
General 12,382,713$ 10,686,896$ 1,695,817$
Tax Increment District No. 3 4,051,816 2,530,103 1,521,713
Infrastructure Construction 970,142 (2,005,796) 2,975,938
Nonmajor funds 13,162,382 12,615,044 547,338
Total – governmental funds 30,567,053$ 23,826,247$ 6,740,806$
Governmental Funds Change in Fund Balance
Fund Balance
as of December 31,
In total, the fund balances of the City’s governmental funds increased by $6,740,806 during the year
ended December 31, 2013. The majority of the increase was in committed and assigned fund balances.
Fund balances committed for capital improvements, infrastructure improvements, and street
improvements increased $2,179,972, $970,142, and $652,549, respectively as approved by City Council
resolution. Fund balances assigned for capital improvements increased $2,754,124 as a result of a new
Capital Project Funding Policy approved by the City Council to provide a recurring source of funding for
the City’s Capital Improvement Plan.
-7-
GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES
The following table presents the per capita revenue of the City’s governmental funds for the past three
years, along with state-wide averages.
We have included the most recent comparative state-wide averages available from the State Auditor to
provide a benchmark for interpreting the City’s data. The amounts received from the typical major
sources of governmental fund revenue will naturally vary between cities based on factors such as the
City’s stage of development, location, size and density of its population, property values, services it
provides, and other attributes. It will also differ from year-to-year due to the effect of inflation and
changes in the City’s operation. Also, certain data on these tables may be classified differently than how
they appear on the City’s financial statements in order to be more comparable to the state-wide
information, particularly in separating capital expenditures from current expenditures.
We have designed this section of our management report using per capita data in order to better identify
unique or unusual trends and activities of your city. We intend for this type of comparative and trend
information to complement, rather than duplicate, information in the Management’s Discussion and
Analysis. An inherent difficulty in presenting per capita information is the accuracy of the population
count, which for most years is based on estimates.
Year 201120122013
Population2,500–10,00010,000–20,000 20,000–100,00030,20430,56930,569
Property taxes414$ 382$ 416$ 444$ 471$ 494$
Tax increments32 44 46 84 88 103
Franchise fees and other taxes 29 36 30 50 50 50
Special assessments 60 54 62 65 42 61
Licenses and permits 24 24 35 32 28 35
Intergovernmental revenues 278 279 138 163 118 103
Charges for services 104 81 83 37 35 35
Other 66 58 50 26 36 22
Total revenue 1,007$ 958$ 860$ 901$ 868$ 903$
December 31, 2012
Governmental Funds Revenue per Capita
With State-Wide Averages by Population Class
State-Wide City of Brooklyn Center
The City relies more on property tax revenue for its governmental funds revenue compared to the average
Minnesota city. The City continues to generate significantly more tax increment revenue per capita than
average, as it has made extensive use of this tool to finance commercial development.
The City’s per capita governmental funds revenue for 2013 was $903, an increase of about 4.0 percent
from the prior year. This was primarily due to an increase in property tax and special assessment revenue
offset by a decrease in intergovernmental revenue and other revenue. Property tax revenue increased $23
per capita due to the increased levy and increased excess tax increments received. Special assessment
revenue increased $19 per capita mainly due to an increase in street and storm projects in the current year
compared to the prior year. These increases were offset by decreases in intergovernmental revenue and
other revenue. Intergovernmental revenue decreased $15 per capita mainly due to the City receiving a
grant for the environmental cleanup of a redevelopment area within the City in the prior year. The
decrease in other revenue of $14 per capita is due to one-time payments the City received in the prior year
related to projects that were finalized and due to decreased investment earnings.
-8-
The expenditures of governmental funds will also vary from state-wide averages and from year-to-year,
based on the City’s circumstances. Expenditures are classified into three types as follows:
Current – These are typically the general operating type expenditures occurring on an annual
basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues.
Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more
typically fluctuating significantly from year-to-year. Many of these expenditures are
project-oriented, and are often funded by specific sources that have benefited from the
expenditure, such as special assessment improvement projects.
Debt Service – Although the expenditures for debt service may be relatively consistent over the
term of the respective debt, the funding source is the important factor. Some debt may be repaid
through specific sources such as special assessments or redevelopment funding, while other debt
may be repaid with general property taxes.
The City’s expenditures per capita of its governmental funds for the past three years, together with
state-wide averages, are presented in the following table:
Year 201120122013
Population2,500–10,00010,000–20,000 20,000–100,00030,20430,56930,569
Current
General government127$ 101$ 84$ 114$ 116$ 119$
Public safety 234 229 241 287 297 298
Street maintenance114 105 92 79 69 78
Parks and recreation 82 95 86 80 83 81
All other 73 75 92 62 162 87
630$ 605$ 595$ 622$ 727$ 663$
Capital outlay
and construction 315$ 313$ 221$ 184$ 23$ 283$
Debt service
Principal 187$ 135$ 103$ 98$ 87$ 87$
Interest and fiscal 58 46 39 30 26 29
245$ 181$ 142$ 128$ 113$ 116$
State-Wide
December 31, 2012
Governmental Funds Expenditures per Capita
With State-Wide Averages by Population Class
City of Brooklyn Center
The City’s governmental funds current per capita expenditures are higher than state-wide averages for
cities in the same population class. The City’s current operating costs are higher than average due to
above average general government and public safety costs. The City’s per capita current expenditures
decreased $64 per capita in 2013 as a result of the developer note receivable in Tax Increment District
No. 5 being forgiven in the prior year. Capital outlay costs per capita increased $260 as a result of the
Kylawn Project in the current year. Debt service costs per capita increased $3.
-9-
GENERAL FUND
The City’s General Fund accounts for the financial activity of the basic services provided to the
community. The primary services included within this fund are the administration of the municipal
operation, police and fire protection, building inspection, streets and highway maintenance, and parks and
recreation. The graph below illustrates the change in the General Fund financial position over the last nine
years. We have also included a line representing annual expenditures to reflect the change in the size of
the General Fund operation over the same period.
$–
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
200520062007200820092010201120122013
General Fund Financial Position
Year Ended December 31,
Fund Balance
Cash and Investments (Net of Interfund Borrowing)
Expenditures
The City’s General Fund cash and investments balance (net of interfund borrowing) at December 31,
2013 was $13,037,962, which increased $1,890,649 from 2012. Total fund balance at December 31, 2013
was $12,382,713, up $1,695,817 from the prior year.
Having an appropriate fund balance is an important factor in assessing the City’s financial health because
a government, like any organization, requires a certain amount of equity to operate. Generally, the amount
of equity required typically increases as the size of the operation increases. A healthy financial position
allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows
for the adequate and consistent funding of services, repairs, and unexpected costs; and can be a factor in
determining the City’s bond rating and resulting interest costs.
The City has an approved fund balance policy that states the General Fund will manage its cash flow by
having a year-end target unassigned fund balance of between 50 percent and 52 percent of next year’s
General Fund budgeted expenditures. At December 31, 2013, the City’s General Fund had an unassigned
fund balance of 52 percent of the subsequent year’s budgeted expenditures.
-10-
The following graph reflects the City’s General Fund revenue sources for 2013 compared to budget:
Other
Charges for Services
Intergovernmental
Licenses and Permits
Taxes
General Fund Revenue
Budget Actual
Total General Fund revenues for 2013 were $18,765,710, which was $1,236,721 (7.1 percent) over the
final budget. The majority of this variance was from taxes and licenses and permits. Tax revenue was
$601,560 over budget mainly due to the excess tax increments that were recognized in the current year
and not included in the budget. Licenses and permits were over budget by $442,795 from more than
anticipated building-related activities.
The following graph presents the City’s General Fund revenues by source for the last five years. The
graph reflects the City’s reliance on property taxes and other local sources of revenue, and shows the lack
of general state aid revenue in recent years.
$–
$1,500,000
$3,000,000
$4,500,000
$6,000,000
$7,500,000
$9,000,000
$10,500,000
$12,000,000
$13,500,000
$15,000,000
$16,500,000
TaxesIntergovernmentalOther
General Fund Revenue by Source
Year Ended December 31,
2009 2010 2011 2012 2013
Overall, General Fund revenues increased $894,133 (5.0 percent) from the previous year. Tax revenue
increased $750,630 due to an increase in the tax levy in the current year and an increase in excess tax
increments received. Intergovernmental revenue increased $119,683 due to increased police pension aid,
PERA aid, and FEMA storm recovery aid.
-11-
The following graphs illustrate the components of General Fund spending for 2013 compared to budget:
Other
Parks and Recreation
Public Works
Public Safety
General Government
General Fund Expenditures
Budget Actual
Total General Fund expenditures (excluding administrative services reimbursement) for 2013 were
$18,088,281, which was $412,106 (2.2 percent) less than budget. The largest area that was under
budgeted amounts was public safety expenditures totaling $465,246. Public safety expenditures were
under budget in the police protection department due to open staff positions during the year.
The following graph presents the City’s General Fund expenditures by function for the last five years.
$–
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
General
Government
Public SafetyPublic WorksParks and
Recreation
Other
General Fund Expenditures by Function
Year Ended December 31,
2009 2010 2011 2012 2013
General Fund expenditures increased by $644,917, or 3.7 percent, from the prior year, mainly due to the
$277,023 increase in the public works function, the $153,572 increase in public safety expenditures, and
the $120,049 increase in other expenditures. The increase in public works expenditures is due to increased
personal services in the engineering department and street department. Public safety expenditures
increased mainly due to increased personal services in the police protection and protective inspection
departments. Other expenditures increased due to increased supplies and insurance costs.
-12-
ENTERPRISE FUNDS OVERVIEW
The City maintains several enterprise funds to account for services the City provides that are financed
primarily through fees charged to those utilizing the service. This section of the report provides you with
an overview of the financial trends and activities of the City’s enterprise funds, which includes the
Municipal Liquor, Golf Course, Earle Brown Heritage Center, Water Utility, Sanitary Sewer Utility,
Storm Drainage Utility, Street Light Utility, and Recycling Utility Funds.
The utility funds comprise a considerable portion of the City’s activities. These funds significantly help to
defray overhead and administrative costs and provide additional support to general government operations
by way of annual transfers. We understand that the City is proactive in reviewing these activities on an
ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over
the years, we have emphasized to our city clients the importance of these utility operations being
self-sustaining, preventing additional burdens on general government funds. This would include the
accumulation of net position for future capital improvements and to provide a cushion in the event of a
negative trend in operations.
ENTERPRISE FUNDS FINANCIAL POSITION
The following table summarizes the changes in the financial position of the City’s enterprise funds during
the year ended December 31, 2013, presented both by classification and by fund:
Increase
20132012(Decrease)
Net position of enterprise funds
Total by classification
Net investment in capital assets42,466,488$ 42,406,210$ 60,278$
Unrestricted12,546,185 12,202,397 343,788
Total – enterprise funds 55,012,673$ 54,608,607$ 404,066$
Total by fund
Municipal Liquor2,685,412$ 2,490,774$ 194,638$
Golf Course657,068 753,672 (96,604)
Earle Brown Heritage Center6,065,638 6,604,837 (539,199)
Water Utility11,709,616 11,386,122 323,494
Sanitary Sewer Utility 13,204,689 12,909,163 295,526
Storm Drainage Utility 19,874,022 19,816,537 57,485
Street Light Utility752,477 592,612 159,865
Recycling Utility63,751 54,890 8,861
Total – enterprise funds 55,012,673$ 54,608,607$ 404,066$
Enterprise Funds Change in Financial Position
Net Position
as of December 31,
In total, the net position of the City’s enterprise funds increased by $404,066 during the year ended
December 31, 2013. As noted above, all of the City’s enterprise funds had positive operating results with
the exception of the Golf Course and Earle Brown Heritage Center Funds.
-13-
Water Fund
The following graph presents nine years of operating results for the Water Fund:
$(250,000)
$–
$250,000
$500,000
$750,000
$1,000,000
$1,250,000
$1,500,000
$1,750,000
$2,000,000
$2,250,000
$2,500,000
200520062007200820092010201120122013
Water Fund
Year Ended December 31,
Operating Revenue
Operating Expenses
Project Costs
Operating Income (Loss), Excluding Project Costs
The Water Fund ended 2013 with a net position of $11,709,616, an increase of $323,494 from the prior
year. Of this, $9,469,643 represents the investment in utility distribution system capital assets, leaving
$2,239,973 of unrestricted net position.
Water Fund operating revenue was $2,275,767 for 2013, a decrease of $21,573 (0.9 percent) over the
prior year. Operating expenses of $1,966,957 were $177,741 (9.9 percent) more than last year due to costs
associated with a manganese action plan and increased water main breaks during the current year.
-14-
Sanitary Sewer Fund
The following graph presents nine years of operating results for the Sanitary Sewer Fund:
$(200,000)$–
$200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000 $3,400,000 $3,600,000 $3,800,000 $4,000,000
200520062007200820092010201120122013
Sanitary Sewer Fund
Year Ended December 31,
Operating Revenue
Operating Expenses
Project Costs
Operating Income (Loss), Excluding Project Costs
The Sanitary Sewer Fund ended 2013 with a net position of $13,204,689, an increase of $295,526 from
the prior year. Of this, $10,766,979 represents the investment in the sanitary sewer capital assets, leaving
$2,437,710 of unrestricted net position.
Sanitary Sewer Fund operating revenues for 2013 were $3,675,936, which was an increase of $83,507
(2.3 percent) from the prior year, due to an approved rate increase offset by a decrease in consumption.
Operating expenses for 2013 were $3,368,520, which was an increase of $73,724 (2.2 percent) from the
prior year due to an increased depreciation expense of $63,066.
-15-
Storm Drainage Fund
The following graph presents nine years of operating results for the Storm Drainage Fund:
$–
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
200520062007200820092010201120122013
Storm Drainage Fund
Year Ended December 31,
Operating Revenue
Operating Expenses
Operating Income (Loss)
The Storm Drainage Fund ended 2013 with a net position of $19,874,022, an increase of $57,485 from
the prior year. Of this, $15,419,178 represents the investment in capital assets, leaving $4,454,844 of
unrestricted net position.
Storm Drainage Fund operating revenues for 2013 were $1,621,912, which was a slight decrease of
$15,574 from the prior year.
Operating expenses for 2013 were $1,556,358, which was $56,223 higher than the prior year due to
increased personal services and supplies.
-16-
OTHER ENTERPRISE FUNDS
Liquor Fund
The following graph presents nine years of operating results for the Liquor Fund:
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
200520062007200820092010201120122013
Liquor Fund
Year Ended December 31,
Sales
Cost of Sales
Operating Expenses
Operating Income (Loss)
The Liquor Fund ended 2013 with a net position of $2,685,412, an increase of $194,638 from the prior
year. Of the net position balance, $198,471 represents the investment in liquor capital assets, leaving
$2,486,941 of unrestricted net position.
Liquor sales for 2013 were $6,063,231, which is $99,323 (1.7 percent) higher than the prior year. Other
than the slight decrease in 2010, sales have steadily increased over the last several years, increasing by
about 10.6 percent since 2008. The Liquor Fund generated operating income of $389,258 in 2013, or
about 6.4 percent of gross sales, which is a slight increase from the 6.3 percent of gross sales in fiscal
2012.
The Liquor Fund gross profit margin was 28.40 in fiscal 2013 which is higher than the average gross
profit margin of 27.48 seen over the previous five years.
-17-
Earle Brown Heritage Center Fund
The following graph presents nine years of operating results for the Earle Brown Heritage Center Fund:
$(1,000,000)
$(500,000)
$–
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
200520062007200820092010201120122013
Earle Brown Heritage Center Fund
Year Ended December 31,
Sales and User Fees
Operating Expenses
Cost of Sales
Operating Income (Loss)
The Earle Brown Heritage Center Fund ended 2013 with a net position of $6,065,638, a decrease of
$539,199 from the prior year. Of the net position balance, $4,499,353 represents investments in Earle
Brown Heritage Center capital assets, leaving $1,566,285 of unrestricted net position.
Earle Brown Heritage Center Fund sales and user fees for 2013 were $4,271,578, which is $186,494
(4.2 percent) less than last year. The decrease is due to the decreased number of events held at the facility
in 2013 compared to the prior year. Operating expenses for 2013 were $2,696,297, a decrease of $64,903
from the prior year. The decrease in operating expenses is directly related to the decreased revenues in the
current year.
During fiscal 2013, this fund experienced a decrease in cash of $15,258. The majority of the difference
between the operating income (loss) in the table above and this decrease in cash is depreciation expense
totaling $672,394.
-18-
Golf Course Fund
The following graph presents nine years of operating results for the Golf Course Fund:
$(150,000)
$(100,000)
$(50,000)
$–
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
200520062007200820092010201120122013
Golf Course Fund
Year Ended December 31,
Operating Revenue
Operating Expenses
Operating Income (Loss)
The Golf Course Fund ended 2013 with a net position of $657,068, a decrease of $96,604 from the prior
year. Of this, $1,537,254 represents the investment in golf course land and capital assets, leaving a deficit
of ($880,186) in unrestricted net position.
Golf Course Fund operating revenues for 2013 were $167,280, which is $40,547 less than last year.
Operating expenses for 2013 were $264,259, down $8,023 from the prior year. On an annual basis, this
fund has had to borrow from other funds to fund cash flow needs. This interfund borrowing totals
$869,301 at December 31, 2013.
We recommend that the City continue to monitor the financial results in this fund. We also recommend
that the City continue to update the long-range financial plan for this fund, including considering alternate
plans for financing the payback of the interfund borrowing in this fund.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
In addition to fund-based information, the current reporting model for governmental entities also requires
the inclusion of two government-wide financial statements designed to present a clear picture of the City
as a single, unified entity. These government-wide financial statements provide information on the total
cost of delivering services, including capital assets and long-term liabilities.
STATEMENT OF NET POSITION
The Statement of Net Position essentially tells you what your city owns and owes at a given point in time,
the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to
use for providing services after its debts are settled. However, those resources are not always in spendable
form, or there may be restrictions on how some of those resources can be used. Therefore, the Statement
of Net Position divides the net position into three components:
Net Investment in Capital Assets – The portion of net position reflecting equity in capital assets
(i.e. capital assets minus related debt).
Restricted Net Position – The portion of net position equal to resources whose use is legally
restricted minus any non-capital-related liabilities payable from those same resources.
Unrestricted Net Position – The residual balance of net position after the elimination of net
investment in capital assets and restricted net position.
The following table presents the components of City’s net position as of December 31, 2013 and 2012 for
governmental activities and business-type activities:
Increase
20132012 (Decrease)
Net position
Governmental activities
Net investment in capital assets42,281,203$ 45,261,629$ (2,980,426)$
Restricted27,219,086 24,259,292 2,959,794
Unrestricted11,205,288 5,875,289 5,329,999
Total governmental activities80,705,577 75,396,210 5,309,367
Business-type activities
Net investment in capital assets42,466,488 42,406,210 60,278
Unrestricted12,208,126 11,856,924 351,202
Total business-type activities54,674,614 54,263,134 411,480
Total net position 135,380,191$ 129,659,344$ 5,720,847$
As of December 31,
The City’s total net position at December 31, 2013 was $5,720,847 higher than previous year-end. Of the
increase, $5,309,367 came from governmental activities and $411,480 came from business-type activities.
The increase in both of these is due to the positive operating results of the City.
-20-
STATEMENT OF ACTIVITIES
The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other
transactions that increase or reduce total net positions. These amounts represent the full cost of providing
services. The Statement of Activities provides a more comprehensive measure than just the amount of
cash that changed hands, as reflected in the fund-based financial statements. This statement includes the
cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses.
The following table presents the change in the net position of the City for the years ended December 31,
2013 and 2012:
2012
Program
ExpensesRevenuesNet ChangeNet Change
Governmental activities
General government3,165,401$ 790,316$ (2,375,085)$ (2,163,274)$
Public safety9,618,906 1,931,275 (7,687,631) (7,319,319)
Public works4,215,855 4,355,559 139,704 (2,698,898)
Community service149,203 7,772 (141,431) (141,505)
Parks and recreation2,752,539 906,277 (1,846,262) (1,886,469)
Economic development3,833,915 1,857,580 (1,976,335) (3,249,480)
Interest on long-term debt490,162 – (490,162) (768,241)
Business-type activities
Municipal liquor5,674,937 6,072,334 397,397 381,750
Golf course263,425 167,655 (95,770) (64,996)
Earle Brown Heritage Center4,835,131 4,294,723 (540,408) (475,333)
Water utility2,025,496 2,357,757 332,261 466,194
Sanitary sewer utility3,382,810 3,689,130 306,320 275,103
Storm drainage utility1,552,327 1,622,012 69,685 159,197
Recycling utility289,043 297,870 8,827 4,884
Street light utility257,079 417,470 160,391 131,986
Total net (expense) revenue 42,506,229$ 28,767,730$ (13,738,499) (17,348,401)
General revenues
Property taxes 14,943,008 14,307,993
Tax increments 3,098,620 2,751,249
Lodging taxes 881,252 882,620
Grants and contributions not
restricted to specific programs 590,916 496,679
Unrestricted investment earnings (108,661) 118,558
Gain on disposal of capital asset 54,211 113,976
Total general revenues 19,459,346 18,671,075
Change in net position 5,720,847$ 1,322,674$
Net (expense) revenue
2013
One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the
way the City’s governmental and business-type operations are financed. The table clearly illustrates the
dependence of the City’s governmental operations on general revenues, such as property taxes and
unrestricted grants. It also shows that, for the most part, the City’s business-type activities are generating
sufficient program revenues (service charges and program-specific grants) to cover expenses. This is
critical given the current downward pressures on the general revenue sources.
-21-
LEGISLATIVE UPDATES
Despite an improving economy, the 2013 Legislature faced the familiar prospect of having to address a
significant projected deficit in order to adopt a balanced budget for the next biennium. The November
2012 financial forecast projected a deficit of $1.1 billion in the state General Fund for the 2014–2015
biennium, which was revised down to a $627 million deficit in the February 2013 forecast. Even with this
challenge, there was an expectation that with one political party holding the Governor’s office and
majorities in both the House and Senate, this biennial budget agreement would be reached more quickly
and easily than the previous one, which featured numerous vetoes, a special session, and the longest
shutdown of non-essential state government services in Minnesota history. While in the end there was no
special session or government shutdown, the 2013 session still stretched until the final day allowable
under the state constitution, with the last bill passed at midnight.
The following is a summary of recent legislative activity affecting the finances of Minnesota cities in
2013 and into the future:
Local Government Aid (LGA) – The state-wide LGA appropriation for fiscal 2013 was set to
increase about 2.8 percent to $426.4 million. However, the 2012 Legislature froze 2013 LGA
payments at 2012 levels for cities with a population of 5,000 or more. For cities with populations
below 5,000, 2013 LGA was the greater of their 2012 aid or the amount they would have received for
2013 under existing law.
The 2013 Legislature completely overhauled the LGA formula for fiscal year 2014 and thereafter,
creating a three-tiered formula that includes separate “need factor” calculations for cities with
populations under 2,500, between 2,500 and 10,000, or over 10,000. The new formula simplifies the
LGA calculation, and is designed to reduce the volatility of the LGA distribution by limiting the
amount it may decline in a given year. Under the new formula, each city’s LGA distribution for 2014
will be no less than their 2013 LGA. Beginning in 2015, any reduction to a city’s LGA distribution
will be limited to the lesser of $10 per capita, or 5 percent of their previous year net tax levy. For
cities that gain under the new formula, the increases will be distributed proportionate to their unmet
need, as determined by the new “need factor” calculations. The state-wide LGA appropriation is
$507.6 million for fiscal 2014, $509.1 million for 2015, and $511.6 million for fiscal 2016 and
thereafter.
Levy Limits – A levy limit for city property tax levies payable in 2014 was established for all cities
with populations exceeding 2,500. The levy limit base is the certified levy (excluding special levies)
plus the certified LGA for taxes payable in fiscal 2012 or 2013, whichever is greater, increased by 3
percent. The levy limit is equal to the base, less the city’s certified LGA for fiscal 2014. Levies for
special purposes such as debt service, abatements, or voter-approved purposes, are not subject to this
limitation.
Market Value Definitions – A number of levy, tax, spending, debt, and similar limits that had
previously been computed based on “market value” or “taxable market value” must now be computed
based on “estimated market value.” This change was enacted to eliminate the effects of the homestead
market value exclusion established in 2011.
Levy Authority for Watershed Management Plan – Cites are granted the authority to levy taxes
to provide funding for the implementation of a comprehensive watershed management plan.
Tax Status of Leased Tax-Exempt Property – Tax-exempt property owned by a political
subdivision and held under a lease for a term of at least one year, or under a contract for the purchase
thereof, is considered to be the property of the person holding it for all purposes of taxation. This
change makes the tax treatment of leased property owned by local governments consistent with leased
property owned by the federal government.
-22-
Tax Increment Financing (TIF) – A number of changes and clarifications were made to rules
governing the use of TIF, including:
The prohibition on using tax increments for improvements or equipment primarily of a
decorative or aesthetic nature, or with costs twice as high due to the selection of materials or
designs compared to more commonly used improvements or equipment, is eliminated.
The four-year rule originally applying to TIF Districts certified between January 1, 2005 and
April 20, 2009 is extended through December 31, 2016.
Development authorities may elect to reduce the original net tax capacity of qualifying TIF
districts for the effects of the homestead market value exclusion that replaced the homestead
tax credit program.
Taxes paid by captured tax capacity of TIF districts that are attributable to the new general
education levy authorized by the 2013 Legislature, will be paid to the school district that
imposes the levy.
Park Dedication Fees – A clarification was made to define the basis on which a city calculates a
park dedication fee charged to a developer in lieu of dedicating land for park usage. The fee must be
calculated on the fair market value of the land as annually determined by the city based on tax
valuation or other relevant data. The new law also provides a method for resolving valuation disputes
through negotiation or the use of independent appraisals of land in the same land use category.
Host Community Economic Development Grants – A new program was created that will provide
grants for the acquisition and improvement of publicly owned capital assets for metro-area cities that
host waste disposal facilities. No local matching funds are required.
Change to Small Cities Development Block Grants – The Minnesota Department of Employment
and Economic Development is now allowed to provide a forgivable loan through the Small Cities
Development Block Grant Program directly to a private enterprise. The city in which the private
enterprise is located is no longer required to submit an application, only a resolution of support.
Wastewater and Stormwater Funding – Several changes were made to wastewater and stormwater
grant and loan programs administered by the Public Facilities Authority. The changes include
expanded eligibility for some programs, and increased grant or loan ceilings for others.
Sales Tax Exemption – Cities are exempted from paying sales tax on qualifying purchases, effective
for purchases made on or after January 1, 2014. This exemption does not include purchases of goods
or services to be used as inputs to goods or services cities provide to the public that are generally
provided by a private business, such as liquor stores, golf courses, marinas, or fitness centers.
Cities with a population over 500 will be required to include a property tax savings report along with
its proposed 2013 payable 2014 property tax levy certification, with the amount of sales or use taxes
paid or estimated to have been paid in fiscal 2012. Cities must also discuss the savings resulting from
the sales tax exemption at their fall truth-in-taxation public hearings.
Organized Solid Waste Collection – The process for imposing the city-organized collection of solid
waste was streamlined and better defined. The previous 180-day process for cities to adopt organized
collection of solid waste was eliminated. The process now begins with a 60-day period in which cities
may negotiate with collectors currently operating in the city, thereby giving them the first opportunity
to develop a proposal for organized collection. If the 60-day negotiation period ends without an
agreement, a city may continue the process by passing a resolution to form a committee to study the
methods of organizing collection and make recommendations. A city must provide public notice and
hold at least one public hearing before deciding to implement organized collection.
-23-
Pensions – An omnibus pension bill was passed that made a number of changes to both state-wide
pension plans and single employer relief associations, including:
Changes to the Public Employees Retirement Association (PERA) General Plan:
o The “average salary” for determining surviving spouse and dependent benefits was
redefined.
o A number of clarifications were made to what constitutes “salary” for plan purposes.
o Changes were made to the level of annual post-retirement adjustments, which will
vary based on the funding level of the plan.
Changes to the PERA Police and Fire Plan:
o Increases employee contribution rate from 9.6 percent of salary to 10.2 percent for
fiscal 2014, and 10.8 percent for fiscal 2015 and thereafter.
o Increases employer contribution rate from 14.4 percent of salary to 15.3 percent for
fiscal 2014, and 16.2 percent for fiscal 2015 and thereafter.
o A 20-year proportional vesting period was established for new hires beginning in
2014, under which the member becomes 50 percent vested after 10 years, and vests
an additional 5 percent annually until fully vested at 20 years.
o The retirement annuity formula calculation was changed to incorporate the effect of
the new 20-year vesting period, and a new cap of 33 years on allowable service time
included in the annuity calculation.
o The early retirement reduction factor was increased from the current 2.4 percent per
year to 5 percent, phased in over a 5-year period beginning July 1, 2014.
o Changes were made to the level of annual post-retirement adjustments, which will
vary based on the funding level of the plan.
Changes to single employer relief associations:
o The threshold of assets at which police relief associations and salaried or volunteer
fire relief associations must prepare financial statements and have them audited by an
independent auditor was raised from $200,000 to $500,000.
o Volunteer firefighter relief associations are now required to pay a supplemental
survivor benefit whenever it pays a survivor benefit, regardless of whether it is
authorized in the association bylaws.
o Any change to the interest rate paid during the deferral period of lump-sum service
pensions must be approved by the governing body of the city or independent
firefighting corporation to which the association is related.
In addition, a new supplemental state aid was created to provide funding for pension plans. An annual
allotment of $15.5 million will be distributed among the PERA Police and Fire Plan ($9 million),
municipal volunteer firefighter associations ($5.5 million allocated based on proportionate share of
fire state aid), and the Minnesota State Retirement System State Patrol Plan ($1 million).
Expansion of Debt Authority – Several changes were made to expand the allowable uses of certain
types of debt, including:
Home rule charter city or statutory city capital notes are allowed to be used for the purchase
of application development services and training related to the use of computer hardware and
software.
Capital improvement program (CIP) bonds are allowed to be used for expenditures incurred
before the adoption of the CIP, if the expenditures are included in the plan.
Street reconstruction bonds are allowed to be used for bituminous overlay projects, which
previously had not been included in the definition of reconstruction.
-24-
Authorized Investments – The list of authorized investments for cities was expanded to include:
revenue obligations issued by local governments without levy authority that are rated AA or better;
short-term (13 month maturity or less) obligation issued by a school district that is either rated in the
highest credit rating category or covered by the State of Minnesota Credit Enhancement Program; and
short-term (18 month maturity or less) guaranteed investment contracts when the issuer’s or
guarantor’s short-term debt is rated in the highest rating category, even if their long-term debt is rated
below the top two rating categories.
Elections – The Legislature passed an omnibus elections policy bill that made a number of changes
and clarifications to election requirements, including:
Establishing “no excuse” absentee balloting;
Increasing the time for counting absentee ballots from 4 days prior to the election to 7;
Reducing the number of people a voter may vouch for in a polling place from 15 to 8;
Eliminating the requirement to have at least one telecommunications device for deaf voter
registration in every city of the first, second, or third class;
Requiring that the municipal clerk designated to administer absentee ballots also be
responsible for the administration of a “ballot board”;
Reducing the number of election judges required in a precinct for elections other than a
general election from 4 to 3, for precincts with more than 500 voters; and allowing the
minimum number of three election judges for all elections including general elections for
precincts with less than 500 registered voters;
Modifying the vote differentials requiring publically funded recounts to 0.25 percent in
elections where more than 50,000 votes are cast, and 0.5 percent for elections in which
between 400 and 50,000 votes are cast;
Amending the time period in which cities are prohibited from holding a special election from
the first 40 days following a general election to the first 56 days;
Increasing the number of days’ notice a city clerk must provide to a county auditor before
holding a municipal election from 67 to 74 days; and
Establishing a pilot program and task force for the use of electronic rosters of voters.
Alternative Bid Publication for Projects Funded by Special Assessments – A technical change
was made to eliminate duplicative publication requirements for projects funded with special
assessments. The definition of “recognized industry trade journal” was broadened to include websites
or electronic publications, thereby eliminating circumstances that were forcing cities utilizing an
alternative electronic publication method to also publish written notice for certain projects.
Met Council Allocated Costs – A change was made to allow cities that are allocated costs by the
Met Council to request the cost be deferred, or to be paid over time on a payment schedule with
interest as agreed to by the Met Council.
Liquor Licensing – An omnibus liquor bill was passed that made several changes to liquor licensing
and distribution. Among the changes are: authorizing cities with municipal liquor operations to issue
brewer taproom licenses that allow consumption on the premises or adjacent to malt liquor breweries;
authorizing cities to issue brewers a license for off-sale of malt liquor packaged by the brewer;
providing for the sale of malt-liquor educator licenses that will allow malt liquor tastings and
education to be conducted similar to wine tastings; and allowing micro-distilleries to provide product
samples on site.
Tax-Exempt Holding Period for Development Property – The tax exempt holding period for
city-owned land held for development is increased from 9 to 15 years for property acquired between
January 1, 2000 and December 31, 2010, or for property located in a city outside of the metro area
with a population under 20,000.
-25-
Citizen Contact Information Classified as Private Data – Citizen contact information submitted to
cities in order to receive certain notifications or to subscribe to the city’s electronic publications, such
as phone numbers or email addresses, is now classified as private data. The names of people on such
lists remain public information.
Criminal History and Background Checks – Cities are authorized to perform criminal history
checks on applicants for: city employment, volunteer positions, or a license that does not otherwise
subject the applicant to a criminal history check. Such criminal history checks may not be substituted
for statutorily mandated background checks.
Background checks are now required for all fire department applicants, and are allowed for current
fire department employees. The fire chief is also required to perform criminal history record checks
of applicants.
-26-
ACCOUNTING AND AUDITING UPDATES
GASB STATEMENT NO. 67 – FINANCIAL REPORTING FOR PENSION PLANS – AN AMENDMENT OF
GASB STATEMENT NOS. 25 AND 50
The primary objective of this statement is to improve financial reporting by state and local government
pension plans. GASB Statement No. 67 replaces the requirements of GASB Statement Nos. 25 and 50 for
pension plans that are administered through trusts or equivalent arrangements that meet the following
criteria: contributions from employers and nonemployer contributing entities to the pension plan and
earnings on those contributions are irrevocable; pension plan assets are dedicated to providing pensions to
plan members in accordance with the benefit terms; and pension plan assets are legally protected from the
creditors of employers, nonemployer contributing entities, and the pension plan administrator. If the plan
is a defined benefit pension plan, plan assets also are legally protected from creditors of the plan
members. The requirements of GASB Statement Nos. 25 and 50 remain applicable to pension plans that
are not administered through trusts covered by the scope of this statement and to defined contribution
plans that provide post-employment benefits other than pensions. The statement makes a number of
changes in the financial statement presentation, measurement, and required disclosures relating to the
reporting of these types of pension plans. This statement is effective for financial statements for fiscal
years beginning after June 15, 2013. Earlier application is encouraged.
GASB STATEMENT NO. 68 – ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS – AN
AMENDMENT OF GASB STATEMENT NOS. 27 AND 50
The primary objective of this statement is to improve accounting and financial reporting by state and local
governments for pensions. This statement replaces the requirements of GASB Statement Nos. 27 and 50,
as they relate to pensions that are provided through pension plans administered as trusts or equivalent
arrangements that meet certain criteria (as described earlier for GASB Statement No. 67). The
requirements of GASB Statement Nos. 27 and 50 remain applicable for pensions that are not covered by
the scope of this statement.
This statement establishes standards for measuring and recognizing liabilities, deferred outflows of
resources, deferred inflows of resources, and expense/expenditures. In addition, this statement details the
recognition and disclosure requirements for employers with liabilities (payables) to a defined benefit
pension plan and for employers whose employees are provided with defined contribution pensions. This
statement also addresses circumstances in which a nonemployer entity has a legal requirement to make
contributions directly to a pension plan. This statement is effective for financial statements for fiscal years
beginning after June 15, 2014. Earlier application is encouraged.
Included in this statement are major changes in how employers that participate in cost-sharing pension
plans, such as the Teachers’ Retirement Association (TRA) and PERA, account for pension benefit
expenses and liabilities. In financial statements prepared using the economic resources measurement
focus and accrual basis of accounting (government-wide and proprietary funds), a cost-sharing employer
that does not have a special funding situation is required to recognize a liability for its proportionate share
of the net pension liability of all employers with benefits provided through the pension plan. A
cost-sharing employer is required to recognize pension expense and report deferred outflows of resources
and deferred inflows of resources related to pensions for its proportionate share of collective pension
expense and collective deferred outflows of resources and deferred inflows of resources related to
pensions. In addition, the effects of (1) a change in the employer’s proportion of the collective net pension
liability and (2) differences during the measurement period between the employer’s contributions and its
proportionate share of the total of contributions from employers included in the collective net pension
liability are required to be determined. These effects are required to be recognized in the employer’s
pension expense in a systematic and rational manner over a closed period equal to the average of the
expected remaining service lives of all active and inactive employees that are provided with pensions
through the pension plan.
-27-
GASB STATEMENT NO. 69 – GOVERNMENT COMBINATIONS AND DISPOSALS OF GOVERNMENT
OPERATIONS
This statement provides accounting and financial reporting guidance, including disclosure requirements,
for government combinations and disposals of government operations. Government combinations include
mergers, acquisitions, and transfers of operations. Included within the scope of this statement are
combinations of governmental entities, or combinations of governmental entities with nongovernmental
entities (such as a nonprofit entity), as long as the new or continuing organization is a government. This
statement does not apply to combinations in which a government acquires an organization that continues
to exist as a separate entity, or acquires an equity interest in an organization that remains legally separate
from the acquiring government. A disposal of operations occurs when a government either transfers or
sells specific operations. The provisions of this statement are effective for financial statements for periods
beginning after December 15, 2013. Earlier application is encouraged.
CHANGES TO REQUIREMENTS FOR FEDERAL GRANTS
In December 2013, the U.S. Office of Management and Budget (OMB) issued “Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Audits,” which supersedes all or parts
of eight OMB circulars; consolidating federal cost principles, administrative principles, and audit
requirements in one document. The “Super Circular” includes a number of significant changes to the
federal Single Audit process, including an increase in dollar threshold for requiring a Single Audit,
changes to the thresholds and process used for determining major programs, a reduction in the percentage
of expenditures required to be covered by a Single Audit, revised criteria for determining low-risk
auditees, and an increase in the threshold for reporting questioned costs. The draft version of this
guidance also included proposed reductions in the number of compliance requirements to be tested in a
Single Audit, but final guidance on those changes will not be available until an updated compliance
supplement is issued in 2014.
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 Transmittal 1
Principal Officials 8
Organizational Chart 9
Certificate of Achievement10
FINANCIAL SECTION
Independent Auditor's Report11
Management's Discussion and Analysis15
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 27
Statement of Activities 28
Fund Financial Statements
Governmental Funds
Balance Sheet 30
Reconciliation of the Balance Sheet of the Governmental Funds
to the Statement of Net Position 31
Statement of Revenues, Expenditures and Changes in Fund Balances 32
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities 33
Statement of Revenues, Expenditures and Changes in Fund Balances: Budget-to-Actual
General Fund 34
Tax Increment District No. 3 Special Revenue Fund 35
Proprietary Funds
Statement of Net Position 36
Statement of Revenues, Expenses and Changes in Net Position 38
Statement of Cash Flows 40
Notes to the Financial Statements 43
Required Supplementary Information
Schedule of Funding Progress - Other Postemployment Benefits 73
Combining and Individual Fund Statements and Schedules
Governmental Funds
Nonmajor Governmental Funds
Combining Balance Sheet 78
Combining Statement of Revenues, Expenditures and Changes in Fund Balances79
Nonmajor Special Revenue Funds
Combining Balance Sheet 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances82
Nonmajor Debt Service Funds
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures and Changes in Fund Balances86
Nonmajor Capital Projects Funds
Combining Balance Sheet 88
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 Fund 90
Nonmajor Special Funds
Housing and Redevelopment Authority 95
Economic Development Authority 96
Community Development Block Grant 97
Tax Increment District No. 3 98
Tax Increment District No. 4 99
City Initiatives Grant 100
Nonmajor Debt Service Funds
G.O. Improvement Bonds, 2003A 101
G.O. Improvement Bonds, 2004C 102
G.O. Refunding Bonds, 2004A 103
G.O. Improvement Bonds, 2006A 104
G.O. Improvement Bonds, 2008B 105
G.O. Tax Increment Bonds, 2008A 106
G.O. Tax Increment Bonds, 2004D 107
Nonmajor Capital Projects Funds
Capital Improvements 109
Municipal State-Aid for Construction 109
Infrastructure Construction 110
Street Reconstruction 111
Technology 112
Proprietary Funds
Internal Service Funds
Combining Statement of Net Position 114
Combining Statement of Revenues, Expenses and Changes in Net Position 115
Combining Statement of Cash Flows 116
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component 118
Changes in Net Position 120
Governmental Activities Tax Revenue by Source 126
Fund Balances of Governmental Funds 128
Changes in Fund Balances of Governmental Funds 130
Revenue Capacity
Assessed Tax Capacity and Estimated Actual Values of Taxable Property 132
Property Tax Rates - Direct and Overlapping Governments 134
Principal Property Taxpayers 136
Property Tax Levies and Collections 137
Debt Capacity
Ratios of Outstanding Debt by Type 138
Ratios of General Bonded Debt Outstanding 139
Computation of Direct and Overlapping Debt 140
Legal Debt Margin Information 142
Pledged Revenue Coverage 144
Demographic and Economic Information
Demographic and Economic Statistics 145
Principal Employers 146
Operating Information
Full-Time City Government Positions by Function 147
Operating Indicators by Function 148
Capital Asset Statistics by Function 149
Introductory
Section
City of Brooklyn Center
A Millennium Community
6301 Shingle Creek Parkway Recreation and Community Center Phone & TDD Number
Brooklyn Center, MN 55430-2199 (763) 569-3400
City Hall and TDD Number (763) 569-3300 FAX (763) 569-3434
FAX (763) 569-3494
www.cityofbrooklyncenter.org
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.
1
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.
2
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.
3
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.
4
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.
In 2013, the 2nd 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.
5
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.
6
7
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2013
NamePositionTerm of OfficeTerm Expires
ELECTED OFFICIALS
Tim Willson Mayor Four YearsDecember 31, 2014
Carol Kleven Council Member Four YearsDecember 31, 2014
Kris Lawrence-AndersonCouncil Member Four YearsDecember 31, 2016
Dan Ryan Council Member Four YearsDecember 31, 2014
Lin Myszkowski Council Member Four YearsDecember 31, 2016
APPOINTED OFFICIALS
Cornelius L. BoganeyCity Manager Appointed
Charles LeFevre City Attorney Contractual Appointee
Sharon Knutson City Clerk Appointed
Vickie SchleuningAssistant City Manager/Building and Community Standards DirectorAppointed
Kevin Benner Police Chief Appointed
Gary Eitel Business and Development Director Appointed
Lee Gatlin Fire Chief Appointed
James Glasoe Community Activities, Recreation and Services Director Appointed
Steve Lillehaug Director of Public Works/City Engineer Appointed
Nathan ReinhardtFinance Director Appointed
8
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10
Financial
Section
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Brooklyn Center, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
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.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
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.
AUDITOR’S RESPONSIBILITY
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)
OPINIONS
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.
OTHER MATTERS
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)
12
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
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
13
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14
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 ($84,747,691 or 62.60%) reflects its investment in capital assets, which includes: land
infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
20132012 20132012 2013 2012
Current and other assets 65,182,089$ 46,616,663$ 15,413,732$ 15,443,090$ 80,595,821$ 62,059,753$
Capital Assets 49,201,203 48,148,729 42,466,488 42,406,210 91,667,691 90,554,939
Total assets 114,383,292 94,765,392 57,880,220 57,849,300 172,263,512 152,614,692
Long-term liabilities outstanding 24,180,322 15,055,151 1,800,000 1,940,000 25,980,322 16,995,151
Other liabilities 9,497,393 4,314,031 1,405,606 1,646,166 10,902,999 5,960,197
Total liabilities 33,677,715 19,369,182 3,205,606 3,586,166 36,883,321 22,955,348
Net investment in capital assets 42,281,203 45,261,629 42,466,488 42,406,210 84,747,691 87,667,839
Restricted 27,219,086 24,259,292 - - 27,219,086 24,259,292
Unrestricted 11,205,288 5,875,289 12,208,126 11,856,924 23,413,414 17,732,213
Total Net Position 80,705,577$ 75,396,210$ 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.
CITY OF BROOKLYN CENTER - SUMMARY OF NET POSITION
Governmental ActivitiesBusiness-Type Activities Total
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 $5,309,367 (92.81%), accounting for the majority of the
City's increase in net position. Key elements of the changes are as follows:
Revenues:20132012 20132012 2013 2012
Program revenues
Charges for services 2,331,973$ 3,672,951$ 18,866,176$ 18,888,703$ 21,198,149$ 22,561,654$
Operating grants and contributions 3,089,220 3,165,588 - - 3,089,220 3,165,588
Capital grants and contributions 4,427,586 491,404 52,775 - 4,480,361 491,404
General revenues
Property taxes 14,943,008 14,307,993 - - 14,943,008 14,307,993
Other taxes 3,979,872 3,633,869 - - 3,979,872 3,633,869
Grants and contributions not
restricted to specific programs 590,916 496,679 - - 590,916 496,679
Unrestricted investment earnings (81,438) 85,560 (27,223) 32,998 (108,661) 118,558
Gain on disposal of assets 54,211 113,976 - - 54,211 113,976
Total revenues 29,335,348 25,968,020 18,891,728 18,921,701 48,227,076 44,889,721
Expenses:
General government 3,165,401 3,246,015 - - 3,165,401 3,246,015
Public safety 9,618,906 9,604,521 - - 9,618,906 9,604,521
Public works 4,215,855 3,561,914 - - 4,215,855 3,561,914
Community services 149,203 141,505 - - 149,203 141,505
Parks and recreation 2,752,539 2,796,561 - - 2,752,539 2,796,561
Economic development 3,833,915 5,438,372 - - 3,833,915 5,438,372
Interest on long-term debt 490,162 768,241 - - 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 24,225,981 25,557,129 18,280,248 18,009,918 42,506,229 43,567,047
Change in net position
before transfers 5,109,367 410,891 611,480 911,783 5,720,847 1,322,674
Transfers 200,000 436 (200,000) (436) - -
Change in net position 5,309,367 411,327 411,480 911,347 5,720,847 1,322,674
Net Position - January 1 75,396,210 74,984,883 54,263,134 53,351,787 129,659,344 128,336,670
Net Position - December 31 80,705,577$ 75,396,210$ 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.
CITY OF BROOKLYN CENTER - CHANGES IN NET POSITION
Governmental ActivitiesBusiness-Type Activities Total
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:
Charges for services
7.9%
Operating grants
10.5%
Capital grants
15.2%
Property taxes
50.9%
Other taxes
13.6%
Other general revenues
2.2%
Investment earnings
-0.3%
Revenues by Source
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
General
government
Public safetyPublic worksCommunity
services
Parks and
recreation
Economic
development
Interest on
long-term debt
Function Expenses vs. Program Revenues
Expense Program Revenue
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:
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.
Municipal liquor
31.0%
Golf course
1.4%
Earle Brown Heritage
Center
26.5%
Water utility
11.1%
Sanitary sewer utility
18.5%
Storm drainage utility
8.5%
Street Light Utility
1.4%
Recycling utility
1.6%
Business-type Activities -Function Expenses
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Municipal
liquor
Golf courseEarle Brown
Heritage
Center
Water utilitySanitary
sewer utility
Storm
drainage
utility
Street light
utility
Recycling
utility
Function Expenses vs. Program Revenues
Expense Program Revenue
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: The City's proprietary funds provide the same type of information presented as business-type activities
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 $882,846. The additions include, but are not limited to: a Caterpillar loader, mowers, police
vehicles and a multipurpose dump/plow truck.
20132012 20132012 2013 2012
Land 3,537,473$ 3,537,473$ 3,194,983$ 3,194,983$ 6,732,456$ 6,732,456$
Easements 99,670 104,208 20,102 24,165 119,772 128,373
Construction in progress 3,375,955 186,765 2,793,558 57,956 6,169,513 244,721
Land improvements - - 213,198 178,593 213,198 178,593
Other park improvements 6,087,696 6,253,418 - - 6,087,696 6,253,418
Buildings and structures 8,375,053 9,046,643 4,010,475 4,747,752 12,385,528 13,794,395
Machinery and equipment 3,931,850 3,869,215 349,008 314,190 4,280,858 4,183,405
Streets 23,793,506 25,151,007 - - 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 49,201,203$ 48,148,729$ 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.
(net of depreciation)
Governmental ActivitiesBusiness-type Activities Total
CITY OF BROOKLYN CENTER - CAPITAL ASSETS
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 $26,330,000.
20132012 20132012 2013 2012
General obligation bonds -$ 700,000$ -$ -$ -$ 700,000$
General obligation tax increment bonds17,470,000 12,795,000 - - 17,470,000 12,795,000
General obligation improvement bonds6,920,000 2,590,000 - - 6,920,000 2,590,000
General obligation revenue bonds - - 1,940,000 2,075,000 1,940,000 2,075,000
Compensated absences 1,232,551 1,264,220 - - 1,232,551 1,264,220
Net OPEB obligation 586,026 487,353 - - 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.
Governmental ActivitiesBusiness-type Activities Total
CITY OF BROOKLYN CENTER - OUTSTANDING DEBT
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 $0.60 and the recycling rates increased by 3.00%. There will be no changes to the current storm sewer fee for
2014. These rates are reviewed annually in conjunction with the update and projection of the Capital Improvement Plan of the
City. The review serves two main purposes. First, utility revenues must ensure that the municipal utilities are self-supporting
through revenue, as required by the City charter. These rates along with future projected rate increases are reviewed annually to
ensure compliance with the requirements of the charter. In addition, the rates must generate sufficient cash to provide for the
maintenance, replacement and upgrading of facilities and equipment without unduly burdening the customers. Rates are regularly
compared to neighboring municipalities in these calculations.
Requests for Information
This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Director of Finance, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430.
25
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26
Basic Financial
Statements
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2013
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
ASSETS
Cash and investments39,584,574$ 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 year 1,109,296 - 1,109,296
Net OPEB obligation:
Due in more than one year 586,026 - 586,026
Bonds payable:
Due within one year 1,905,000 140,000 2,045,000
Due in more than one year 22,485,000 1,800,000 24,285,000
Total liabilities 33,677,715 3,205,606 36,883,321
NET POSITION
Net investment in capital assets, net of related debt 42,281,203 42,466,488 84,747,691
Restricted 27,219,086 - 27,219,086
Unrestricted 11,205,288 12,208,126 23,413,414
Total net position 80,705,577$ 54,674,614$ 135,380,191$
The notes to the financial statements are an integral part of this statement.
27
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2013
Charges For
FUNCTIONS/PROGRAMS Expenses Services
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.
28
Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivities Activities Total
-$ -$ (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
Net position - December 31 80,705,577$ 54,674,614$ 135,380,191$
29
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 assets 13,654,566 17,950,286 9,163,975 19,743,980 60,512,807
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 3,697,769 20,527,798
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.
30
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.
31
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 recreation 2,411,792 - - 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.
32
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 outlays 3,309,976
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 resale 4,321,058
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 repayments 2,655,000
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 receivable 40,795
Other charges for services (61,847)
Intergovernmental 1,903,519
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 activities 5,309,367$
The notes to the financial statements are an integral part of this statement.
33
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.
34
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.
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
MunicipalGolfEarle BrownWater
Liquor CourseHeritage 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 6,665,943 13,445,070
LIABILITIES
Current liabilities:
Accounts payable 230,121 10,328 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.
Business-Type Activities
36
Governmental
Activities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotal Internal
Utility Utility Utility UtilityEnterpriseService
1,922,851$ 4,116,903$ 82,395$ 328$ 12,980,160$ 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 -
1,089,554 857,885 - - 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$ 63,751$ 55,012,673 8,577,624$
(338,059)
54,674,614$
Business-Type Activities
37
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2013
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 transfers 394,638 (96,604) (539,199) 323,494
Transfers out (200,000) - - -
Change in net position 194,638 (96,604) (539,199) 323,494
Net position - January 1 2,490,774 753,672 6,604,837 11,386,122
Net position - December 31 2,685,412$ 657,068$ 6,065,638$ 11,709,616$
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.
Business-Type Activities
38
Governmental
Activities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal
UtilityUtilityUtilityUtilityEnterpriseService
3,675,936$ 1,621,912$ 417,470$ 297,870$ 18,791,044$ 1,960,756$
- - - - 6,476,213 -
3,675,936 1,621,912 417,470 297,870 12,314,831 1,960,756
200,547 194,185 - - 2,596,745 665,077
16,834 25,543 2,407 157 391,884 554,432
2,380,146 299,305 36,340 287,969 4,558,746 136,025
19,662 2,564 1,445 917 91,205 46,016
40,404 - 188,516 - 664,615 519
- - - - 302,772 -
710,927 1,034,761 28,371 - 3,125,294 693,055
3,368,520 1,556,358 257,079 289,043 11,731,261 2,095,124
307,416 65,554 160,391 8,827 583,570 (134,368)
13,194 - - - 52,775 9,827
(5,143) (8,169) (526) 34 (27,223) (10,379)
- - - - 27,428 -
- - - - - 54,211
- 100 - - 47,704 33,184
(19,941) - - - (80,188) -
(11,890) (8,069) (526) 34 20,496 86,843
295,526 57,485 159,865 8,861 604,066 (47,525)
- - - - (200,000) -
295,526 57,485 159,865 8,861 404,066 (47,525)
12,909,163 19,816,537 592,612 54,890 54,608,607 8,625,149
13,204,689$ 19,874,022$ 752,477$ 63,751$ 55,012,673$ 8,577,624$
404,066$
7,414
411,480$
Business-Type Activities
39
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2013
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 1 1,987,770 123 1,887,600 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.
Business-Type Activities
40
Governmental
Activities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal
UtilityUtilityUtilityUtilityEnterpriseService
3,736,203$ 1,649,727$ 407,601$ 296,208$ 18,870,106$ -$
- - - - - 1,971,210
(2,560,638) (365,960) (229,374) (289,018) (12,801,012) (705,778)
(199,947) (193,114) - - (2,581,793) (595,591)
13,194 100 - - 100,479 33,184
988,812 1,090,753 178,227 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) -
(53,937) 23,000 - (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$ 328$ 12,980,160$ 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
600 1,071 - - 14,952 69,486
- - - - 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$
Business-Type Activities
41
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42
Notes to
Financial Statements
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)– The governing board for the EDA is the City
Council. The council reviews and approves major community development improvement activities. City general
obligation tax increment financing bonds are issued to finance EDA activities. The EDA is reported as a Special
Revenue fund. The EDA does not issue separate financial statements. Financial information may be obtained at
the City’s offices.
43
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
information on all activities of the primary government and its component units. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities ,
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes
and other items not included among program revenues are reported instead as general revenues .
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting , as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and
special assessments are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting . Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter
to pay liabilities of the current period. For this purpose, the 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.
44
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.
45
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.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund’s principal ongoing operations. The principal operating revenues of the enterprise funds and internal service
funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. CASH AND INVESTMENTS
The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash
equivalents. All of the cash and investments allocated to the proprietary funds have original maturities of 90 days or
less.
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.
46
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.
47
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 Improvements 25,000
Heavy Equipment 25,000
Furniture and furnishings 10,000
Motorized vehicles 10,000
Technology equipment 10,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized.
48
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.
49
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:
Nonspendable – consists of amounts that are not in spendable form or are required to be maintained intact.
Restricted – 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.
50
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 investment
in capital assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of
any bonds used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted
when there are limitations imposed on their use either through constitutional provisions or enabling legislation, or
through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. All
remaining net position is reported as unrestricted.
When both restricted and unrestricted net position are available for an allowable use, it is the government’s policy to
use restricted resources first, then unrestricted resources as they are needed.
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.
Statement No. 68, Accounting and Financial Reporting for Pensions . The primary objective of this statement is to
improve accounting and financial reporting by state and local governments for pensions. It revises existing standards of
financial reporting for most pension plans. The provisions of this statement are effective for periods beginning after
June 15, 2014.
Q. CHANGE IN ACCOUNTING PRINCIPLES
During the year ended December 31, 2013, the City implemented GASB Statement No. 65, Items Previously
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.
51
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 132,819$ 132,883$ (64)$
Administrative755,173 777,350 (22,177)
Legal393,470 401,222 (7,752)
Government buildings 764,248 900,802 (136,554)
Street department1,567,862 1,591,910 (24,048)
Community center 528,856 536,439 (7,583)
Convention bureau 384,037 418,595 (34,558)
Nondepartmental299,470 400,835 (101,365)
52
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 439,109 780,331 (341,222)
Community Development Block Grant211,641 1,422,362 (1,210,721)
City Initiatives Grant 121,236 238,317 (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 78,000 152,526 (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 $0.
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
As of December 31, 2013 the City had the following investments and maturities:
Investment Type Fair ValueNo maturity< 1 1 - 5 6 - 10
Negotiable certificates of deposit 2,207,818$ -$ 981,835$ 1,225,983$ -$
Federal agency notes 10,797,984 - - 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.
Investment Maturities (in years)
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
Concentration of credit risk – The City’s investment policy requires that the investment portfolio be diversified to
minimize potential losses on individual securities. As of 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 - - -
Infrastructure Construction - - 2,724,809 - -
Nonmajor Funds
Housing and Redevelopment Authority2,537 - - - -
Tax Increment District No. 5- - - - 1,150,000
G.O. Improvement, 2004C - - 32,238 - -
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$
55
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 1,003,631 (597,329) 78,357,311
Less accumulated depreciation for:
Easements - temporary 7,211 4,538 - 11,749
Buildings and improvements 10,520,257 671,590 - 11,191,847
Park improvements 3,967,731 286,507 - 4,254,238
Machinery and equipment 4,916,623 736,887 (514,005) 5,139,505
Streets 14,203,400 1,357,501 - 15,560,901
Total accumulated depreciation 33,615,222 3,057,023 (514,005) 36,158,240
Total capital assets being depreciated - net 44,335,787 (2,053,392) (83,324) 42,199,071
Governmental activities capital assets - net 48,148,729$ 1,231,183$ (178,709)$ 49,201,203$
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$
56
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 depreciated84,871,616 449,970 - 85,321,586
Less accumulated depreciation for:
Easements - temporary 6,455 4,063 - 10,518
Land improvements 214,874 14,819 - 229,693
Buildings and improvements 13,949,752 797,373 - 14,747,125
Machinery and equipment 599,609 59,559 - 659,168
Street light systems 67,952 28,371 - 96,323
Mains and lines 30,889,988 2,221,109 - 33,111,097
Total accumulated depreciation 45,728,630 3,125,294 - 48,853,924
Total capital assets being depreciated - net 39,142,986 (2,675,324) - 36,467,662
Business-type activities capital assets - net 42,406,210$ 306,351$ (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 course 10,787
Earle Brown Heritage Center672,394
Water utility639,585
Sanitary sewer utility710,927
Storm drainage utility1,034,761
Street light utility 28,371
Total depreciation expense - business-type activities3,125,294$
57
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
AmountCommitment
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 2,622,069$ 385,060$
E. INTERFUND BALANCES AND TRANSFERS
The composition of due to/from other fund balances at December 31, 2013 are as follows:
Due fromDue to
Other 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
Other 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 -
3,220,209$ 3,220,209$
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 $792,488 advance between
the Golf Course and Capital Improvements funds was made to fund improvements for the golf course. This advance is
not expected to be eliminated within one year of December 31, 2013.
ProjectResponsible Fund
Fund
Fund
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
The composition of interfund transfers as of December 31, 2013 are as follows:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General149,382$ 113,031$
Tax Increment District No. 34,166 1,964,963
Nonmajor Funds:
Housing and Redevelopment Authority- 248,828
Economic Development Authority 248,828 -
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 2,322,668 60,567
Technology 98,000 1,020
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.
59
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$
60
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 payable 1,232,551
Net OPEB obligation 586,026
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 $22,512 of delinquent special assessments receivable.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
Annual debt service requirements to maturity for governmental activities long-term debt are as follows:
G.O. Tax Increment BondsG.O. Improvement Bonds
PrincipalInterestPrincipalInterest
1,430,000$ 642,445$ 475,000$ 160,446$
1,755,000 638,831 1,270,000 187,220
1,835,000 560,238 885,000 151,210
1,930,000 475,425 820,000 122,480
2,005,000 383,350 750,000 96,173
8,515,000 612,581 2,505,000 192,625
- - 215,000 3,225
17,470,000$ 3,312,870$ 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 $616,226,
which accounts for a debt-service coverage ratio of 286.35%.
Governmental Activities
Year Ending
December 31
2014
2015
2016
2017
2018
2019 - 2023
2024
Total
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2013 was as follows:
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds 700,000$ -$ (700,000)$ -$ -$
G.O. tax increment bonds 12,795,000 6,040,000 (1,365,000) 17,470,000 1,430,000
G.O. improvement bonds 2,590,000 4,920,000 (590,000) 6,920,000 475,000
Total bonds payable 16,085,000 10,960,000 (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 $32,369,738.
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
H. FUND EQUITY
Net position reported in the government-wide statement of net position at December 31, 2013 include the following:
Governmental activities
Net investment in capital assets:
Cost of capital assets85,359,443$
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
Total restricted 27,219,086
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
Total business-type activities net position 54,674,614$
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.
64
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.
65
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.
66
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 $101,453. That
actuarial valuation was performed at January 1, 2013, and represents funding for normal cost.
The information below is the most recent data available.
Actuarial valuation date1/1/2013
Actuarial cost methodEntry age normal cost method
Amortization methodLevel dollar amount amortized
on a closed basis
Remaining amortization period8 years
Asset valuation methodfair value
Actuarial assumptions:
Investment rate of return6.0% compounded annually
Discount rate for obligations6.00%
Projected salary increasesNot applicable
Post retirement benefitsNone
Inflation rateNot applicable
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
THREE YEAR TREND INFORMATION
Annual PercentageNet
Year Pension of APCPension
Ending Cost (APC)State-AidCityTotalContributedObligation
12/31/2011 134,087$ 95,119$ 6,000$ 101,119$ 75%52,199$
12/31/2012 105,363 95,982 55,521 151,503 144%-
12/31/2013 100,728 135,340 - 135,340 134%-
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 3,253,686 49,909 101.5%
01/01/20133,282,317 3,279,231 3,086 100.1%
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:
Contributions
68
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 premium 15
Retirees and beneficiaries currently purchasing
health insurance through the City 2
Disabled police officers 2
Active employees 151
Total 170
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.
69
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 obligation 21,931
Adjustment to ARC (29,919)
Annual OPEB cost 238,744
Employer Contributions
Direct 118,430
Indirect Implicit Rate Subsidy 21,641
Increase (decrease) in net OPEB obligation 98,673
Net OPEB obligation, beginning of year 487,353
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 $907,026 for the year ended December 31, 2013. The funded status of the plan was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialAccruedAccruedPercentage
Value ofLiabilityLiability FundedCoveredof Covered
Assets (AAL)(UAAL)RatioPayroll Payroll
-$ 3,996,136$ 3,996,136$ 0.00%8,882,315$ 44.99%
- 3,012,383 3,012,383 0.00%9,143,276 32.95%
- 2,620,367 2,620,367 0.00%9,472,237 27.66%
1/1/2008
1/1/2010
1/1/2012
Actuarial
Valuation
Date
70
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 $5 million of bonds in 2004 and therefore is required to rebate excess investment income
relating to these issues to the federal government. The extent of the City’s liability for arbitrage rebates on the
remaining bond issues is not determinable at this time. However, in the opinion of management, any such liability would
be immaterial.
E. LITIGATION
The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution
of these claims will have a material impact on the City’s financial condition or results of operations.
F. CONTINGENT LIABILITIES
Tax Increment Notes
In May 2002, the City entered into two limited tax increment notes with developers whereby the City will pay the
developers a percentage of the available tax increment. Whether payments will occur and the amount of the payments
is unpredictable since all payments are dependent on the City receiving tax increment revenues from the developer’s
project. As such, this liability has not been recorded in the financial statements. Any potential liability ends with the
decertification of the tax increment district.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2013
In December 2012, the City entered into a tax increment revenue note with a developer whereby the City will pay the
developer the available tax increments as defined in the Tax Increment Development Agreement. Whether payments
will occur and the amount of the payments is unpredictable since all payments are dependent on the City receiving tax
increment revenues from the developer’s project. As such, this liability has not been recorded in the financial
statements. Any potential liability ends with the decertification of the tax increment district.
A schedule of the notes outstanding at December 31, 2013 is as follows:
Amended
or Original12/31/2013InterestMaturity
PrincipalBalanceRateDate
Twin Lakes Business Park2,424,199$ 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.
Note
72
Required
Supplementary Information
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%
73
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74
Combining & Individual
Fund Statements & Schedules
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.
75
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.
76
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.
77
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
DEFERRED INFLOWS OF RESOURCES
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
FUND BALANCES
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.
78
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
REVENUES
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
EXPENDITURES
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.
79
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
DEFERRED INFLOWS OF RESOURCES
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 - -
FUND BALANCES
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$
80
Total
TaxTaxTaxCityEarly RetireeNonmajor
IncrementIncrementIncrementInitiativeReinsuranceSpecial
District No. 2District No. 4District No. 5GrantsProgramRevenue
407,195$ 223,494$ -$ 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
2,834,916 223,494 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
- 1,487 2,432,495 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$
81
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 1 3,464 1,233,679 - 46,536
Fund balances (deficits) - December 31 1,892$ 1,050,239$ -$ 57,181$
82
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
(586) (609) - (196) 143 (3,720)
27,721 - - 224,730 - 258,271
27,135 382,315 449 466,884 143 2,922,805
- - - - 77,682 77,682
- - - 168,346 - 185,899
- - - 69,971 - 69,971
9,201 331,020 13,739 - - 2,407,271
36,327 - - - - 36,327
45,528 331,020 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)
(18,393) 51,295 (13,290) 301,019 (77,539) 68,725
2,853,309 170,712 (1,419,205) 356,187 77,539 3,322,221
2,834,916$ 222,007$ (1,432,495)$ 657,206$ -$ 3,390,946$
83
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$ -$
84
GeneralGeneral
ObligationObligationTaxTaxTotal
ImprovementImprovementIncrementIncrementNonmajor
Bonds Bonds Bonds Bonds Debt
2006A 2008B 2008A 2004D Service
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$
85
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$ -$
86
GeneralGeneral
ObligationObligationTaxTaxTotal
ImprovementImprovementIncrementIncrementNonmajor
Bonds Bonds Bonds Bonds Debt
2006A 2008B 2008A 2004D Service
-$ -$ -$ -$ 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$
87
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2013
MunicipalTotal
State AidCapitalNonmajor
Capital for Reserve Street Capital
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 3,087,099 4,232,498 1,456,459 1,689,737 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
Unavailable revenue - intergovernmental - 1,903,519 - - - 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 balances 3,087,099$ 4,232,498$ 1,456,459$ 1,689,737$ 68,521$ 10,534,314$
88
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
Transfers out (60,567) - - - (1,020) (61,587)
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$
89
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 1 of 5
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)
Electrical Permits 45,000 45,000 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
Total charges for services 913,574 913,574 990,123 76,549
90
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 2 of 5
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 charges 81,886 81,886 62,621 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)
91
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 3 of 5
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:
Personal services 595,091 595,091 596,149 (1,058)
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
92
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 4 of 5
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 charges 209,346 209,346 160,162 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)
93
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 5 of 5
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$
94
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
Actual
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$
Budgeted Amounts
95
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
Actual
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$
Budgeted Amounts
96
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-$ -$ -$
97
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$
98
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$
99
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$
100
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
Actual
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$ -$
Budgeted Amounts
101
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
Actual
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$
Budgeted Amounts
102
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
Actual
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$ -$
Budgeted Amounts
103
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
Actual
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$
Budgeted Amounts
104
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
Actual
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$
Budgeted Amounts
105
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
Actual
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-$ -$ -$
Budgeted Amounts
106
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
Actual
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-$ -$ -$
Budgeted Amounts
107
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
Actual
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$
Budgeted Amounts
108
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
Actual
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$
Budgeted Amounts
109
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
Actual
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$
Budgeted Amounts
110
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
Actual
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$
Budgeted Amounts
111
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
Actual
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$
Budgeted Amounts
112
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
provided by one department to other departments of the City on a cost reimbursement basis.
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 before
July 1, 1989 may be eligible for those benefits from the time they qualify for an unreduced PERA pension, until
they reach age 65 or become eligible for Medicare. In the event that future costs would exceed earnings, other
funds would be charged for the costs associated with their employees.
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 liabilities 188,101 587,188 1,232,551 2,007,840
NET POSITION
Net investment in capital assets 3,822,539 - - 3,822,539
Unrestricted 4,435,247 319,838 - 4,755,085
Total net position 8,257,786$ 319,838$ -$ 8,577,624$
114
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
Net position - December 31 8,257,786$ 319,838$ -$ 8,577,624$
115
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
FINANCING ACTIVITIES
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
CASH FLOWS FROM CAPITAL AND RELATED
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 (7,240) (1,262) (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$
NONCASH FINANCING ACTIVITIES
Acquisitions of capital assets on account 136,852$ -$ -$ 136,852$
Gain on sale of capital assets 54,211$ -$ -$ 54,211$
116
Statistical Section
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.
117
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
Last ten fiscal years
(accrual basis of accounting)
2004 2005 2006 2007
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.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type
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.
118
Table 1
200820092010201120122013
31,423,905$ 33,550,664$ 40,978,165$ 45,761,042$ 45,261,629$ 42,281,203$
31,850,784 29,027,991 22,067,726 24,847,507 24,259,292 27,219,086
690,424 4,082,990 6,985,972 4,376,334 5,875,289 11,205,288
63,965,113$ 66,661,645$ 70,031,863$ 74,984,883$ 75,396,210$ 80,705,577$
42,572,360$ 42,297,110$ 42,800,624$ 45,051,128$ 42,406,210$ 42,466,488$
10,466,919 8,835,644 8,673,168 8,300,659 11,856,924 12,208,126
53,039,279$ 51,132,754$ 51,473,792$ 53,351,787$ 54,263,134$ 54,674,614$
73,996,265$ 75,847,774$ 83,778,789$ 90,812,170$ 87,667,839$ 84,747,691$
31,850,784 29,027,991 22,067,726 24,847,507 24,259,292 27,219,086
11,157,343 12,918,634 15,659,140 12,676,993 17,732,213 23,413,414
117,004,392$ 117,794,399$ 121,505,655$ 128,336,670$ 129,659,344$ 135,380,191$
119
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 17,570,047 19,633,752 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 5,001,098 5,245,670 5,136,386 6,198,664
Net (expense) / revenue (12,568,949) (14,388,082) (14,366,797) (15,304,405)
General Revenues and Transfers
Taxes:
Property 11,445,004 11,951,497 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$
120
Table 2
Page 1 of 3
200820092010201120122013
3,498,767$ 3,653,956$ 3,553,737$ 3,216,321$ 3,246,015$ 3,165,401$
8,760,880 9,036,176 9,125,547 9,268,897 9,604,521 9,618,906
2,596,754 2,687,980 2,747,641 2,771,602 3,561,914 4,215,855
72,893 71,519 82,645 100,849 141,505 149,203
2,910,825 2,773,528 2,732,401 2,895,769 2,796,561 2,752,539
3,713,340 2,151,916 6,504,034 2,542,520 5,438,372 3,833,915
1,125,712 1,143,546 974,950 865,799 768,241 490,162
22,679,171 21,518,621 25,720,955 21,661,757 25,557,129 24,225,981
1,115,038 1,102,360 1,081,556 1,078,109 1,082,741 790,316
780,080 1,234,678 1,501,513 1,547,446 1,402,204 786,828
127,489 26,027 43,194 16,191 270,680 5,879
- - 442 - - 7,772
754,079 740,782 725,891 721,663 897,592 650,522
24,435 445 5,525 88,737 19,734 90,656
1,003,884 1,034,905 2,013,099 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$
121
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 8,380,233 9,688,956 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 9,067,849 9,753,171 10,544,523 11,013,506
Net (expense) / revenue 687,616 64,215 682,366 1,011,458
General Revenues and Transfers
Investment earnings (net)102,696 199,876 337,231 406,654
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$
122
Table 2
Page 2 of 3
200820092010201120122013
1,125,517$ 1,249,946$ 1,262,076$ 1,218,399$ 1,274,375$ 5,674,937$
304,832 323,340 317,539 284,673 273,023 263,425
2,403,676 2,363,085 2,345,920 2,602,074 2,768,719 4,835,131
1,783,275 3,448,819 1,792,628 1,825,558 1,855,345 2,025,496
3,018,418 3,736,989 3,282,472 3,277,874 3,317,427 3,382,810
1,162,957 1,282,505 1,348,974 1,407,712 1,501,652 1,552,327
265,983 276,058 278,381 284,440 285,853 257,079
182,402 220,020 213,752 232,716 222,835 289,043
10,247,060 12,900,762 10,841,742 11,133,446 11,499,229 18,280,248
1,492,644 1,530,175 1,538,403 1,620,315 1,656,125 6,072,334
1,959,628 1,725,858 1,879,902 2,026,063 2,293,386 4,294,723
2,003,633 2,019,325 1,959,684 1,990,664 2,321,539 2,318,176
3,264,649 3,315,726 3,321,373 3,474,588 3,592,530 3,675,936
1,553,236 1,577,879 1,575,679 1,621,104 1,660,849 1,622,012
763,858 770,472 760,757 778,584 853,585 882,995
- - - 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$
123
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 25,950,280 29,322,708 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 14,068,947 14,998,841 15,680,909 17,212,170
Net (expense) / revenue (11,881,333) (14,323,867) (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 18,711,907 18,960,075 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 6,830,574$ 4,636,208$ 2,916,531$ 4,786,609$
Sources: The data for this table has been extracted from the respective years CAFR document.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type
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.
124
Table 2
Page 3 of 3
200820092010201120122013
22,679,171$ 21,518,621$ 25,720,955$ 21,661,757$ 25,557,129$ 24,225,981$
10,247,060 12,900,762 10,841,742 11,133,446 11,499,229 18,280,248
32,926,231 34,419,383 36,562,697 32,795,203 37,056,358 42,506,229
6,511,061 5,705,421 11,998,997 10,389,594 7,329,943 9,848,779
11,037,648 10,939,435 11,035,798 11,591,504 12,378,014 18,918,951
17,548,709 16,644,856 23,034,795 21,981,098 19,707,957 28,767,730
(15,377,522) (17,774,527) (13,527,902) (10,814,105) (17,348,401) (13,738,499)
15,882,282 18,509,732 17,092,176 16,816,796 18,638,513 19,686,569
1,936,547 54,802 146,982 828,324 32,562 (227,223)
17,818,829 18,564,534 17,239,158 17,645,120 18,671,075 19,459,346
3,670,679 - - - - -
- - - - - -
3,670,679 - - - - -
6,111,986$ 790,007$ 3,711,256$ 6,831,015$ 1,322,674$ 5,720,847$
125
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE Table 3
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.
126
This page has been left blank intentionally.
127
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.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type
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.
128
Table 4
200820092010201120122013
21,995$ 27,993$ 26,405$ -$ -$ -$
7,721,443 8,502,012 8,803,942 - - -
- - - 32,308 88,952 26,139
- - - 2,614 - 2,754,124
- - - 9,695,913 10,597,944 9,602,450
7,743,438$ 8,530,005$ 8,830,347$ 9,730,835$ 10,686,896$ 12,382,713$
9,997,668$ 8,696,324$ 7,388,488$ -$ -$ -$
10,523,743 9,399,556 7,095,645 - - -
4,282,881 3,609,961 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)
24,804,292$ 21,705,841$ 16,687,956$ 13,837,970$ 13,139,351$ 18,184,340$
129
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 outlay 4,724,289 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 expenditures 24.23%18.26%18.90%15.85%
Sources: The data for this table has been extracted from the respective years CAFR document.
Note: During 2011, the City implemented GASB Statement No. 54, Fund Balance and Governmental Fund Type
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.
130
Table 5
200820092010201120122013
12,403,914$ 12,897,002$ 13,012,317$ 13,396,611$ 14,389,842$ 15,094,464$
2,894,595 3,601,747 3,111,882 2,527,316 2,685,822 3,149,533
643,934 656,772 647,796 659,066 647,346 651,832
619,962 591,291 696,746 852,302 882,620 881,252
1,289,148 1,352,908 1,491,194 1,975,470 1,294,521 1,877,116
643,736 616,135 1,063,945 961,947 858,593 1,084,003
2,211,560 2,789,007 6,859,817 4,929,902 3,607,218 3,159,571
761,404 1,120,341 1,001,019 1,122,350 1,056,241 1,073,917
302,986 340,536 359,937 340,356 336,740 315,982
733,877 247,260 24,212 143,661 48,322 (71,059)
449,061 370,508 285,425 296,427 742,269 423,822
22,954,177 24,583,507 28,554,290 27,205,408 26,549,534 27,640,433
3,575,147 3,853,628 3,847,199 3,452,428 3,543,040 3,627,498
8,048,529 8,452,348 8,524,140 8,674,195 9,090,324 9,117,541
2,139,864 2,155,532 2,170,059 2,392,297 2,118,303 2,382,215
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
1,384 - - - - 367,405
- - - - 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%
131
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)
Net tax capacity for direct rate 18,553,052$ 20,275,794$ 22,319,064$ 24,453,648$
Net Tax Capacity as a Percentage
of Estimated Actual Market Value 1.01%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 levied 10,778,957$ 11,319,018$ 11,627,415$ 11,958,743$
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.
132
Table 6
200820092010201120122013
2,182,205,700$ 2,079,719,700$ 1,882,823,900$ 1,682,317,900$ 1,633,327,900$ 1,506,661,400$
14,862,000 14,386,500 14,219,700 15,487,000 16,139,200 18,257,700
2,197,067,700$ 2,094,106,200$ 1,897,043,600$ 1,697,804,900$ 1,649,467,100$ 1,524,919,100$
25,898,336$ 25,158,441$ 23,099,333$ 20,759,133$ 18,351,627$ 17,129,016$
291,815 283,070 278,984 304,150 316,491 358,867
(2,470,328) (2,719,868) (2,998,145) (2,774,593) (2,619,012) (2,335,813)
4,625,964 5,259,685 7,002,213 7,123,008 7,194,133 6,844,540
(2,405,929) (2,739,457) (2,420,044) (2,093,764) (1,922,253) (2,169,035)
25,939,858$ 25,241,871$ 24,962,341$ 23,317,934$ 21,320,986$ 19,827,575$
1.18%1.21%1.32%1.37%1.29%1.30%
11,404,750$ 11,804,016$ 12,504,044$ 12,905,340$ 13,207,954$ 13,632,326$
730,152 703,903 715,183 695,632 708,581 711,725
302,191 385,289 349,745 310,831 302,288 246,160
12,437,093$ 12,893,208$ 13,568,972$ 13,911,803$ 14,218,823$ 14,590,211$
41.081 44.732 48.230 54.234 61.036 67.485
2.815 2.789 2.865 2.983 3.323 3.590
1.185 1.617 1.317 1.341 1.457 1.128
45.081 49.138 52.412 58.558 65.816 72.202
133
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
Overlapping Rates
CityCountyDistrict 11District 279District 281District 286
Metro
Districts (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.
134
Table 7
Total Direct and Overlapping Rates
Other
Districts (2)Watershed (3)District 11
District 11
& Watershed
District
279
District
281District 286
District 286
& Watershed
3.986 - 129.555 129.555 132.214 142.763 148.397 148.397
4.078 - 124.769 124.769 127.613 133.266 139.436 139.436
4.074 0.073 116.129 116.202 117.971 124.645 135.864 135.937
4.639 - 111.139 111.139 115.544 120.536 127.940 127.940
4.835 0.265 108.032 108.297 111.024 118.557 128.568 128.833
4.575 0.047 114.968 115.015 117.785 123.966 139.868 139.915
5.518 0.081 123.129 123.210 125.652 131.892 154.363 154.444
6.223 0.568 137.569 138.137 138.355 148.525 161.267 161.835
6.439 0.001 146.895 146.896 148.501 156.381 171.590 171.591
6.874 0.101 158.580 158.681 159.853 164.227 187.810 187.911
135
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL PROPERTY TAXPAYERS Table 8
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.
136
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONS Table 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.
137
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPE Table 10
Last ten fiscal years
Business-Type
Governmental Activities Activities
General Tax G.O.Storm SewerUtility Percentage
ObligationIncrementImprovementRevenueRevenueTotalof PersonalPer
Bonds Bonds BondsBondsBonds (BAB)Debt IncomeCapita
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 23,390,000 1.42%777
20111,385,000 13,720,000 3,260,000 - 2,210,000 20,575,000 1.19%681
2012700,000 12,795,000 2,590,000 - 2,075,000 18,160,000 1.01%594
2013 - 17,470,000 6,920,000 - 1,940,000 26,330,000 1.46%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.
138
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 11
Last ten fiscal years
Less: Amounts Percentage of
General Available in Net General Estimated
Obligation Debt Service Obligation Market Value Per
Bonds Fund Debt of Property Capita
2004 10,450,000$ 5,903,577$ 4,546,423$ 0.25%157$
2005 5,045,000 1,054,230 3,990,770 0.20%142
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.
139
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
COMPUTATION OF DIRECT AND OVERLAPPING Table 12
GOVERNMENTAL ACTIVITIES DEBT
December 31, 2013
EstimatedEstimated Share
DebtPercentageof Overlapping
Governmental UnitOutstandingApplicable 1 Debt
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.
140
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141
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 margin 27,956,673$ 32,012,766$ 35,858,803$ 39,548,264$
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.
142
Table 13
200820092010201120122013
2,189,212,600$ 2,087,517,800$ 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%
65,676,378 62,625,534 56,747,742 50,777,838 44,044,797 40,152,162
2,076,766 1,460,286 828,885 193,595 - -
63,599,612$ 61,165,248$ 55,918,857$ 50,584,243$ 44,044,797$ 40,152,162$
3.16%2.33%1.46%0.38%0.00%0.00%
143
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PLEDGED-REVENUE COVERAGE Table 14
Last ten fiscal years
Special Assessment Bonds
Special
Assessment Debt Service
Collections Principal Interest Coverage
2004 1,410,344$ 1,005,000$ 218,457$ 115.28%
2005 1,058,557 990,000 197,760 89.12%
2006 1,035,961 1,000,000 167,284 88.75%
2007 884,261 900,000 162,486 83.23%
2008 816,798 980,000 145,121 72.60%
2009 1,173,435 765,000 166,946 125.91%
2010 750,168 920,000 167,686 68.97%
2011 747,145 745,000 136,890 84.72%
2012 561,618 670,000 111,460 71.87%
2013 485,034 590,000 88,870 71.45%
Tax Increment Bonds
Tax Increment Debt Service
Collections Principal Interest Coverage
2004 3,606,130$ 1,775,000$ 286,867$ 174.90%
2005 3,576,209 770,000 729,740 238.46%
2006 1,609,994 1,000,000 887,080 85.32%
2007 1,707,470 1,050,000 847,236 90.00%
2008 1,906,053 1,030,000 804,491 103.90%
2009 2,356,641 2,765,000 922,711 63.91%
2010 1,794,442 2,785,000 783,961 50.28%
2011 1,321,205 1,290,000 702,530 66.31%
2012 2,388,702 925,000 651,744 151.50%
2013 2,766,160 1,365,000 598,107 140.91%
Storm Sewer Revenue Bonds
Storm
Drainage Less:Net
Utility OperatingAvailable Debt Service
Charges Expenses Revenue Principal Interest Coverage
2004 1,276,778$ 756,593$ 520,185$ 220,000$ 18,250$ 218.34%
2005 1,293,841 1,086,600 207,241 230,000 6,210 87.74%
Utility Revenue Bonds (BAB)
Water and
Sanitary SewerLess:Net
Utility OperatingAvailable Debt Service
Charges Expenses Revenue Principal Interest Coverage
2010 5,249,263$ 4,934,032$ 315,231$ -$ 68,081$ 463.02%
2011 5,421,679 5,011,775 409,904 140,000 83,438 183.45%
2012 5,889,769 5,084,012 805,757 135,000 81,562 372.07%
2013 5,951,703 5,335,477 616,226 135,000 80,188 286.37%
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.
144
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 15
Last ten fiscal years
School Enrollments
Per Capita No. 286
No. ofPersonalPersonalUnemploymentMedianNo. 11No. 279No. 281Brooklyn
PopulationHouseholdsIncomeIncomeRateAgeAnokaOsseoRobbinsdaleCenter
200429,005 11,350 1,400,100,355$ 48,271$ 4.2%41,592 21,620 16,196 1,691
200528,137 11,186 1,408,819,590 50,070 4.6%41,596 21,792 13,368 1,679
200627,901 11,142 1,484,751,715 53,215 4.9%41,310 22,071 13,194 1,705
200727,907 11,207 1,554,866,412 55,716 5.6%34.3 40,656 21,859 12,891 1,763
200830,330 11,250 1,723,775,220 56,834 7.0%34.4 40,152 21,001 12,526 2,012
200929,810 11,175 1,572,835,220 52,762 8.9%33.6 39,822 20,903 11,947 2,250
201030,104 10,756 1,649,036,912 54,778 8.0%31.3 39,106 20,835 12,036 2,311
201130,204 10,791 1,734,223,068 57,417 7.2%32.8 38,686 20,686 12,062 2,109
201230,569 10,812 1,800,452,962 58,898 6.4%33.1 38,403 20,623 12,181 2,177
201330,569 10,812 1,800,452,962 58,898 5.1%33.1 38,183 20,689 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.
145
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PRINCIPAL EMPLOYERS Table 16
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 1,700 111.64%
Graco, Inc.832 25.70%
Cub Foods 180 51.23%
Ault, Inc.150 61.03%
Cass Screw Machine Products123 80.84%
Best Buy 110 90.75%
Kohl's 100 100.68%
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.
146
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION Table 17
Last ten fiscal years
2004200520062007200820092010201120122013
General government
Administrative6.0 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 government23.0 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
Civilians 15.0 15.0 15.0 12.0 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 center 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 1.0 1.0
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 Center11.0 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 - 1.0 1.4 1.4 1.4 1.4 1.4 1.4 2.4 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.
147
CI
T
Y
O
F
B
R
O
O
K
L
Y
N
C
E
N
T
E
R
,
M
I
N
N
E
S
O
T
A
ST
A
T
I
S
T
I
C
A
L
S
E
C
T
I
O
N
(
U
N
A
U
D
I
T
E
D
)
OP
E
R
A
T
I
N
G
I
N
D
I
C
A
T
O
R
S
B
Y
F
U
N
C
T
I
O
N
Table 18
La
s
t
t
e
n
f
i
s
c
a
l
y
e
a
r
s
Fu
n
c
t
i
o
n
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
Po
l
i
c
e
Vi
o
l
e
n
t
C
r
i
m
e
s
1
6
5
1
7
4
1
9
1
2
1
0
1
9
2
1
6
6
1
3
8
1
3
5
1
1
3
1
2
9
Se
r
i
o
u
s
C
r
i
m
e
s
1
,
8
9
3
1
,
9
5
1
2
,
0
5
4
1
,
9
9
2
2
,
0
4
9
1
,
6
9
6
1
,
3
5
8
1
,
5
2
9
1
,
5
6
1
1
,
7
1
2
To
t
a
l
C
a
l
l
s
f
o
r
S
e
r
v
i
c
e
2
6
,
3
2
8
2
6
,
7
3
8
2
8
,
6
4
4
3
4
,
1
8
5
3
6
,
9
2
3
4
4
,
1
5
2
4
3
,
0
6
9
4
1
,
3
4
7
3
9
,
7
3
6
3
7
,
3
7
0
Fi
r
e
Fi
r
e
s
/
A
l
l
o
t
h
e
r
c
a
l
l
s
5
4
5
6
9
2
6
9
7
6
7
7
6
8
4
6
8
8
7
7
2
7
7
4
7
8
1
6
3
4
Me
d
i
c
a
l
c
a
l
l
s
2
7
9
2
1
2
3
2
6
3
8
6
4
1
9
5
3
8
9
8
0
1
,
1
3
5
1
,
2
0
9
1
,
2
0
9
Fi
r
e
i
n
s
p
e
c
t
i
o
n
s
p
e
r
f
o
r
m
e
d
9
8
4
5
0
0
1
0
6
1
0
5
2
4
5
1
4
1
2
9
5
2
7
0
St
r
e
e
t
s
To
t
a
l
m
i
l
e
s
1
0
5
.
5
3
1
0
5
.
5
3
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
3
1
0
5
.
7
3
1
0
5
.
7
3
1
0
5
.
7
3
Mi
l
e
s
o
f
s
t
r
e
e
t
s
r
e
c
o
n
s
t
r
u
c
t
e
d
2
.
8
0
4
.
6
0
2
.
5
0
4
.
2
0
4
.
1
5
2
.
6
4
5
.
1
7
5
.
6
2
0
.
7
0
2
.
9
0
Pa
r
k
s
a
n
d
r
e
c
r
e
a
t
i
o
n
Co
m
m
u
n
i
t
y
C
e
n
t
e
r
A
d
m
i
s
s
i
o
n
s
6
2
,
4
5
8
5
9
,
2
8
8
6
1
,
6
8
0
6
1
,
0
2
2
6
0
,
3
2
3
6
1
,
2
7
2
5
9
,
3
1
0
5
7
,
8
7
4
5
9
,
5
5
0
6
2
,
4
3
4
Ac
r
e
s
o
f
p
a
r
k
m
a
i
n
t
a
i
n
e
d
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
Mu
n
i
c
i
p
a
l
l
i
q
u
o
r
Nu
m
b
e
r
o
f
s
t
o
r
e
s
22
2
2
2
2
2
2
2
2
Sa
l
e
s
(
i
n
t
h
o
u
s
a
n
d
s
)
$
4
,
0
2
7
$
4
,
6
1
0
$
5
,
1
5
9
$
5
,
4
7
5
$
5
,
4
8
5
$
5
,
6
1
0
$
5
,
5
4
3
$
5
,
7
8
9
$
5
,
9
6
4
$
6
,
0
6
3
Go
l
f
c
o
u
r
s
e
Ro
u
n
d
s
s
o
l
d
2
2
,
8
4
7
2
0
,
7
8
0
2
1
,
1
0
0
1
5
,
6
8
0
1
5
,
8
0
2
1
4
,
0
4
0
1
3
,
5
2
4
1
2
,
1
6
9
1
2
,
8
7
5
1
1
,
7
2
4
Ea
r
l
e
B
r
o
w
n
H
e
r
i
t
a
g
e
C
e
n
t
e
r
Bo
o
k
i
n
g
s
5
7
7
5
7
9
6
1
1
5
7
0
5
2
2
4
2
1
4
3
3
5
4
8
4
6
0
3
9
7
Fu
n
c
t
i
o
n
s
1
,
7
3
4
1
,
7
2
5
1
,
8
7
0
1
,
7
2
0
1
,
4
1
2
1
,
1
7
8
1
,
1
1
9
1
,
0
5
5
1
,
0
5
3
1
,
0
8
2
Wa
t
e
r
Co
n
n
e
c
t
i
o
n
s
8
,
9
6
3
8
,
9
3
8
8
,
9
0
4
8
,
9
9
7
8
,
9
8
6
8
,
9
9
0
8
,
9
6
0
8
,
8
8
7
8
,
8
9
4
8
,
8
9
6
Mi
l
e
s
o
f
w
a
t
e
r
m
a
i
n
s
1
1
4
.
8
2
1
1
8
.
2
5
1
2
0
.
5
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
1
9
.
7
0
Av
e
r
a
g
e
d
a
i
l
y
c
o
n
s
u
m
p
t
i
o
n
3
,
5
5
1
,
1
0
4
3
,
6
9
7
,
7
9
0
3
,
6
0
9
,
9
0
3
3
,
6
2
1
,
1
2
2
3
,
5
5
0
,
1
2
6
3
,
7
3
3
,
6
0
2
3
,
1
9
0
,
0
0
0
2
,
9
3
9
,
0
0
0
3
,
1
9
6
,
0
7
2
3
,
0
0
0
,
3
7
8
Sa
n
i
t
a
r
y
s
e
w
e
r
Co
n
n
e
c
t
i
o
n
s
8
,
7
9
9
8
,
8
0
4
8
,
8
0
7
8
,
7
9
3
8
,
8
3
7
8
,
8
3
7
8
,
8
2
9
8
,
8
2
0
8
,
8
1
3
8
,
7
8
3
Mi
l
e
s
o
f
s
a
n
i
t
a
r
y
s
e
w
e
r
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
1
0
5
.
6
1
So
u
r
c
e
s
:
T
h
e
d
a
t
a
f
o
r
t
h
i
s
t
a
b
l
e
h
a
s
b
e
e
n
p
r
o
v
i
d
e
d
b
y
e
a
c
h
r
e
s
p
e
c
t
i
v
e
C
i
t
y
d
e
p
a
r
t
m
e
n
t
.
14
8
CI
T
Y
O
F
B
R
O
O
K
L
Y
N
C
E
N
T
E
R
,
M
I
N
N
E
S
O
T
A
ST
A
T
I
S
T
I
C
A
L
S
E
C
T
I
O
N
(
U
N
A
U
D
I
T
E
D
)
CA
P
I
T
A
L
A
S
S
E
T
S
T
A
T
I
S
T
I
C
S
B
Y
F
U
N
C
T
I
O
N
Table 19
La
s
t
t
e
n
f
i
s
c
a
l
y
e
a
r
s
Fu
n
c
t
i
o
n
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
Pu
b
l
i
c
s
a
f
e
t
y
Po
l
i
c
e
St
a
t
i
o
n
s
1
1
1
1
11
1
1
1
1
Pa
t
r
o
l
u
n
i
t
s
Ma
r
k
e
d
s
q
u
a
d
s
7
8
8
8
99
9
9
9
1
0
Ot
h
e
r
v
e
h
i
c
l
e
s
1
6
1
6
1
6
1
6
1
4
1
8
1
8
1
8
1
6
1
5
Fi
r
e
St
a
t
i
o
n
s
2
2
2
2
22
2
2
2
2
Fi
r
e
t
r
u
c
k
s
7
7
7
8
88
8
8
8
8
Pu
b
l
i
c
w
o
r
k
s
St
r
e
e
t
s
(
m
i
l
e
s
)
1
0
5
.
5
3
1
0
5
.
5
3
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
8
1
0
5
.
7
3
1
0
5
.
7
3
1
0
5
.
7
3
1
0
5
.
7
3
He
a
v
y
d
u
t
y
t
r
u
c
k
s
(
s
n
o
w
p
l
o
w
s
)
1
3
1
2
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
2
Pa
r
k
s
a
n
d
r
e
c
r
e
a
t
i
o
n
Pa
r
k
s
a
c
r
e
a
g
e
5
2
7
52
7
52
7
52
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
5
2
7
Tr
a
i
l
s
(
m
i
l
e
s
)
11
.
2
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
2
1
.
6
Co
m
m
u
n
i
t
y
c
e
n
t
e
r
s
1
1
1
1
11
1
1
1
1
Gr
o
u
n
d
m
a
i
n
t
e
n
a
n
c
e
e
q
u
i
p
m
e
n
t
13
1
3
1
3
1
3
1
5
1
5
1
5
1
5
1
5
1
4
Ot
h
e
r
v
e
h
i
c
l
e
s
/
e
q
u
i
p
m
e
n
t
14
1
4
1
4
1
4
1
5
1
4
1
4
1
4
1
4
1
4
Wa
t
e
r
Wa
t
e
r
m
a
i
n
s
(
m
i
l
e
s
)
11
4
.
8
2
1
1
8
.
2
5
1
2
0
.
5
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
2
1
.
8
0
1
1
9
.
7
0
We
l
l
s
9
9
9
9
99
9
9
9
9
Se
w
e
r
Sa
n
i
t
a
r
y
s
e
w
e
r
s
(
m
i
l
e
s
)
10
5
.
6
1
10
5
.
6
1
10
5
.
6
1
10
5
.
6
1
10
5
.
6
1
10
5
.
6
1
10
5
.
6
1
105.61 105.61 105.61
Li
f
t
S
t
a
t
i
o
n
s
10
1
0
1
0
1
0
1
0
1
0
1
0
1
0
1
0
1
0
St
o
r
m
s
e
w
e
r
s
(
m
i
l
e
s
)
74
.
2
0
74
.
2
0
74
.
2
0
74
.
2
0
74
.
2
0
74
.
2
0
74
.
2
0
74.2074.2083.01
So
u
r
c
e
s
:
T
h
e
d
a
t
a
f
o
r
t
h
i
s
t
a
b
l
e
h
a
s
b
e
e
n
p
r
o
v
i
d
e
d
b
y
e
a
c
h
r
e
s
p
e
c
t
i
v
e
C
i
t
y
d
e
p
a
r
t
m
e
n
t
.
14
9
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