HomeMy WebLinkAboutCAFR-2007
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
Daniel Jordet
Director
Clara Hilger
Assistant Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2007
(Member of Government Finance Officers
Association of the United States and Canada)
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal 1
Principal Officials 6
Organizational Chart 7
FINANCIAL SECTION
Independent Auditor’s Report 9
Management’s Discussion and Analysis 11
Basic Financial Statements:
Statement of Net Assets 21
Statement of Activities 22
Governmental Funds
Balance Sheet 26
Statement of Revenues, Expenditures, and Changes in Fund Balances 30
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Net Activities 33
Proprietary Funds
Statement of Net Assets 34
Statement of Revenues, Expenses, and Changes in Fund Net Assets 36
Statement of Cash Flows 38
Notes to the Financial Statements 41
Required Supplementary Information:
Budgetary Comparison Schedule-General Fund 71
Budgetary Comparison Schedule-Tax Increment District No. 3 77
Note to Required Supplementary Information 78
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds
Combining Balance Sheet 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 81
Combining Balance Sheet-Nonmajor Special Revenue Funds 84
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances-Nonmajor Special Revenue Funds 86
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FINANCIAL SECTION (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Special Revenue Fund-Housing and Redevelopment Authority 88
Special Revenue Fund-Economic Development Authority 89
Special Revenue Fund-Earle Brown Tax Increment District 90
Special Revenue Fund-Tax Increment District No. 4 91
Special Revenue Fund-Police Drug Forfeiture 92
Special Revenue Fund-Community Development Block Grant 93
Special Revenue Fund-City Initiatives Grant 94
Combining Balance Sheet-Nonmajor Debt Service Funds 96
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Debt Service Funds 97
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Debt Service Fund-G.O. Improvement Bonds 98
Debt Service Fund-General Obligation Bonds 99
Debt Service Fund-Tax Increment Bonds 100
Combining Balance Sheet-Nonmajor Capital Project Funds 102
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances-Nonmajor Capital Project Funds 104
Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget and Actual:
Capital Project Fund-Infrastructure Construction 106
Capital Project Fund-Capital Improvements 107
Capital Project Fund-Municipal State Aid for Construction 108
Capital Project Fund-Earle Brown Heritage Center Improvements 109
Capital Project Fund-Street Reconstruction 110
Capital Project Fund-Technology 111
Nonmajor Enterprise Funds
Combining Statement of Net Assets 114
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 115
Combining Statement of Cash Flows 116
Internal Service Funds
Combining Statement of Net Assets 118
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets 119
Combining Statement of Cash Flows 120
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STATISTICAL SECTION (unaudited)
Net Assets by Component 122
Changes in Net Assets 123
Governmental Activities Tax Revenue by Source 127
Fund Balances – Governmental Funds 128
Changes in Fund Balances – Governmental Funds 130
Assessed Tax Capacity and Estimated Actual Value of Taxable Property 132
Property Tax Rates – Direct and Overlapping Governments 134
Principal Property Taxpayers 136
Property Tax Levies and Collections 137
Ratios of Outstanding Debt by Type 138
Ratios of General Bonded Debt Outstanding 139
Computation of Direct and Overlapping Debt 140
Legal Debt Information 141
Pledged Revenue Coverage 142
Demographic and Economic Statistics 144
Principal Employers 145
Full Time City Government Positions by Function 146
Operating Indicators by Function 147
Capital Asset Statistics by Function 148
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City of Brooklyn Center
A Millennium Community
May 27, 2008
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, 2007.
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.
Minnesota Statutes and City Charter Section 7.12 require that the financial statements
of the City of Brooklyn Center be audited annually by the State Auditor or a certified
public accountant selected by the City Council. These financial statements have been
audited by Malloy, Montague, Karnowski, Radosevich, & Co., P.A. (MMKR). Their report
is included in the financial section of this report. In addition, MMKR is required to issue
an opinion on the City’s management and accounting for grant funds from the federal
government. This “Single Audit” opinion, when included, is designed to meet the
monitoring needs of federal grantor agencies. That report is not required for 2007 as
the City received less than $ 500,000 in total federal grants.
Management’s Discussion and Analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview, and analysis of the
basic financial statements. Management’s Discussion and Analysis complements this
letter of transmittal and should be read in conjunction with it.
Profile of the City of Brooklyn Center
The City of Brooklyn Center was incorporated in 1911 and is located in northern
Hennepin County. The City has operated under the council-manager form of
government since the adoption of the City Charter in 1966. The governing body is
comprised of the Mayor and four Council Members elected at large. All members serve
four-year terms with two of the Council Members standing for election during each
national election year cycle. The Mayor and Council Members hire a City Manager who
runs the daily operations of the City.
The City of Brooklyn Center provides a full range of municipal services to its citizens.
These include police and fire protection services, zoning enforcement, municipal
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
planning, parks and 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 City also has internal departments providing human resources,
engineering, financial management and information technology support to these various
functions. The City operates a conference and meeting facility at the Earle Brown
Heritage Center, two municipal liquor stores, and Centerbrook, a nine-hole executive
golf course.
Financial planning and control for the City of Brooklyn Center is based on the Annual
Operating Budget and the multi-year Capital Improvement Program. Under Minnesota
Statutes, a preliminary property tax levy must be adopted no later than September 15
of each year for the ensuing year’s collection. This establishes a maximum levy that
may subsequently be lowered but not raised. Effective establishment of this levy
requires that a preliminary budget be prepared. The City Manager prepares such a
budget each summer and presents it to the City Council in August, prior to the
consideration of the preliminary tax levy. In addition, the City Council reviews the
recommended rates and charges for utility funds and other operations on an annual
basis as part of the budget process. Citizens receive a notice of taxes proposed for
their individual properties in November based on the preliminary levies established by
all taxing districts. Following the receipt of this notice citizens are invited to public
hearings known as Truth in Taxation hearings in each jurisdiction. The City’s hearing
includes information about the budget, the property tax levy and the priorities of the
City Council for the coming year as made evident by the budget allocations. Public
comment is heard and considered at this hearing. The final property tax levy is
adopted at a subsequent meeting. This forms the basis for the budget preparation and
presentation framework.
In addition, a Capital Improvement Program is reviewed and revised during the budget
process each year. This includes projects for which the City must issue debt and/or
assess portions of the cost to adjacent or benefited property owners. Because there
are limited funds available each year and the City does not wish to issue excessive
amounts of debt, these projects must be reviewed and reprioritized as the Capital
Improvement Program is developed each year.
Economic Condition and Outlook
The City of Brooklyn Center 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.
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The City experienced its most rapid growth from 1950 to 1970 when the City’s
population grew from 4,300 to its peak of 35,173. The 2000 Census data for the City
was 29,172, a slight increase from the 1990 Census data of 28,887. The number of
housing units has remained stable at 11,430 units; there were 11,704 housing units in
1990. As in most mature, first-ring suburbs there is a slight trend toward conversion of
single family homes to rental properties.
The total estimated market value of real and personal property within the City increased
5.13% in 2007 over 2006, 6.39% in 2006 over 2005, and 7.51% in 2005 over 2004.
Industrial values posted the largest gains going up nearly 15%. Multi-family and
personal property values declined slightly from 2006 to 2007. Demand for starter
homes has continued to drive up values of residential property in the City. 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.
Commercial/industrial properties account for 30% of the City’s taxable net tax capacity
in 2007, declining from the 31% in 2006. This reflects final tax court decisions on the
Brookdale Center Mall properties lowering their values substantially. Brookdale Center,
a 1,093,931 square-foot regional shopping center, is the largest commercial property in
the City.
Factors Affecting Financial Condition
Major Events of 2007 and Local Economy
Brooklyn Center is a mature, developed suburb that is working to revitalize itself. With
its affordable housing, excellent schools, beautiful parks, and convenient transportation
access it has the potential to continue to be a vibrant community for many years to
come. The revitalization of Brooklyn Center is proceeding on three tracks: replacement
and renewal of the commercial areas of the City; reconstruction and enhancement of its
streets, utilities, and parks; and the reinvigoration of neighborhoods.
Redevelopment continued to be the key to commercial and industrial tax base growth.
The City has acquired three adjacent business properties at the intersection of Highway
100 and Interstate 94. The buildings on the sites were demolished and Phase I
environmental assessments prepared. This created a 14 acre redevelopment site.
Negotiations are underway to develop 140,000 square feet of Class A office space and
an adjacent parking structure on 8 acres of the site.
The former Hmong-American Shopping Center has encountered delays because of
environmental clean-up of contaminants for a dry cleaning shop. The extent of the
contamination has been determined and a remediation plan is underway.The issue is
expected to be resolved by the fourth quarter of 2008.
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The City’s “Opportunity Site” continues to be a focus for redevelopment efforts. The
City’s acquisition of a former car dealership site presents an opportunity to combine its
parcel with adjacent properties to create a large redevelopment project site along
County Road 10 and Highway 100.
The hospitality industry contributes a significant amount to Brooklyn Center’s economy.
Lodging tax provided over $ 370,000 for 2007 fiscal year operations. While one
outdated hotel facility was acquired by the City and demolished for redevelopment,
construction began at a different site on a new 260 bed hotel facility adjacent to the
City’s Earle Brown Heritage Center conference facility. The new hotel will be connected
to the conference facility by an enclosed walkway. Completion of the new facility is
expected in 2009.
Infrastructure and Transportation
As part of a planned replacement of the aging infrastructure, the City continued the
program for street and utility improvements by reconstructing the Riverwood Area
neighborhood streets in 2007. While streets are replaced, aging water, sanitary and
storm sewer infrastructure is also repaired or replaced. These improvements are
funded by general obligation improvement bonds supported with special assessments
against benefited properties, and funds from the capital projects funds and utility
enterprise funds. About one twenty-fifth of the City’s streets and utilities are
reconstructed each year. It is expected that this will be a perpetual process, since at
the end of twenty-five years it will be necessary to begin anew with the streets that
were done first. Another benefit of these neighborhood projects has been the
increased interest by residents in the maintenance and cleanup of their individual
properties through paint, landscaping and structural repairs.
Development of utility rate models has improved the City’s ability to generate cash flow
and schedule improvements to the water and sewer systems. Separate funds for street
lighting and stormwater drainage have also helped control and prioritize infrastructure
improvements and operations in these areas.
Cash Management
The City of Brooklyn Center receives interest on all funds deposited by the City in its
bank and investment accounts. During 2007 daily funds were moved to a “sweep”
account paying interest on overnight deposits. The rate on this daily sweep declined
during 2007 from 4.5% to a rate at the end of the year of 3.375%. The proceeds of
this daily investment offset the banking fees charged by the City’s main bank, Wells
Fargo. Other funds were invested in various treasury securities and mortgage back
securities considered acceptable risks under the “prudent person” investment limitations
of Minnesota Statutes. Longer term investments will have a slightly higher rate of
interest compared to the overnight “sweep” rates of liquid cash. In addition, the City
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invests in the 4M and 4MPlus funds sponsored by the League of Minnesota Cities. 2007
saw a decrease in the rate of interest paid by the 4M and 4MPlus funds, from 5.00% to
4.70% at the end of the year. These accounts pay a return higher than liquid cash but
lower than treasuries and mortgage backed securities. The advantage of using these
funds is liquidity. Treasury management requires a balance between the availability of
cash and investment to obtain the highest return without undue risk of public assets.
Acknowledgements
This report has been prepared following the guidelines recommended by the
Government Finance Officers Association of the United States and Canada. These
guidelines assure that presentation of information on the city’s financial condition
conforms substantially to the high standards of public financial reporting, including
generally accepted accounting principles promulgated by the Government Accounting
Standards Board.
The preparation and publication of this report would not have been possible without the
efficient work of the Finance staff, especially Clara Hilger, Assistant Finance Director.
We would like to acknowledge all staff that contributed their efforts to the Finance
operations in 2007. We would also like to thank the Mayor and City Council for their
support in promoting and maintaining the highest standards of professionalism and
management of the City of Brooklyn Center.
Respectfully Submitted,
Cornelius L. Boganey Daniel Jordet
City Manager Director of Fiscal & Support Services
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CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2007
Name Position Term of Office Term Expires
ELECTED OFFICIALS
Tim Willson MayorFourYears December 31,2010
Kay Lasman Council Member Four Years December 31, 2008
Mary O’Connor Council MemberFour Years December 31, 2008
Dan Ryan Council Member Four Years December 31, 2010
Mark Yellich Council Member Four Years December 31, 2010
APPOINTED OFFICIALS
Cornelius L. Boganey City Manager Appointed
Charles LeFevre City Attorney Contractual Appointee
Sharon Knutson City Clerk Appointed
Scott Bechthold Police Chief Appointed
Todd Blomstrom Director of Public Works/City Engineer Appointed
Lee Gatlin Fire Chief Appointed
James Glasoe Community Activities, Recreation and Services Director Appointed
Gary Eitel Community Development Director Appointed
Daniel Jordet Director of Fiscal and Support Services Appointed
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Residents
City of Brooklyn Center, Minnesota
We have audited the accompanying 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
(the City) as of and for the year ended December 31, 2007, which collectively comprise the City’s basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
the City’s management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund, and
the aggregate remaining fund information of the City at December 31, 2007, and the respective changes in
financial position and cash flows, where applicable thereof, for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated May 27, 2008, 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 the internal control over
financial reporting or on compliance. This report is an integral part of an audit performed in accordance
withGovernment Auditing Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis and required supplementary information, as listed in the
table of contents, is not a required part of the basic financial statements, but is supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management, regarding the
methods of measurement and presentation of the required supplementary information. However, we did
not audit the information and express no opinion on it.
(continued)
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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
financial statements and schedules, and statistical section, as listed in the table of contents, are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules have been subjected to
the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly
stated, in all material respects, in relation to the basic financial statements taken as a whole. The
introductory section and statistical section have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we express no opinion on them.
May 27, 2008
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Brooklyn Center (the City), we offer readers of the City of Brooklyn Center’s
Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities
of the City for the fiscal year ended December 31, 2007. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of transmittal,
which can be found on pages 1 through 5 of this CAFR.
Financial Highlights
The assets of the City exceeded liabilities by a 4.5 to 1 margin at the close of the most recent fiscal
year. Current assets exceed current liabilities by a 10 to 1 margin. The $ 110,892,406 of net assets
includes cash and investments, streets, buildings, equipment, land and other City assets. Of this
amount, $ 18,834,997 is classified as unrestricted net assets which may be used to meet the
government’s ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
The City’s total net assets increased by $ 4,903,220 or 4.6% from 2006 to 2007.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $ 34,435,588. Of this total amount, $ 35,970,536, or 104% is designated or reserved
through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $ 7,942,414 included $ 700 reserved
for prepaid items and $ 7,941,714 designated for cash flow purposes.
The City’s total outstanding debt decreased by $ 2,540,000 during the current fiscal year, from
$ 27,950,000 to $ 25,410,000.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements include three components: 1) government-wide financial statements, 2)
fund financial statements, and 3) notes to the financial statements. This CAFR also contains other
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements
. The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances, in a manner similar to a consolidated financial statement.
The statement of net assets presents information on all of the City’s assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed during the most
recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and
earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the City include general government, public safety, public works,
community services, recreation and economic development. The business-type activities of the City include
water and sewer, street lighting, liquor operations, golf course, convention center, storm drainage and recycling.
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Management’s Discussion and Analysis
The government-wide financial statements can be found on pages 21 through 23 of this CAFR.
Fund Financial statements
. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the City can be divided into two categories: governmental funds and
proprietary funds.
Governmental funds
. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows and outflows of
spendable resource, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statement. By doing so, readers may better
understand the long-term impact of the City's near-term financial decisions. Both the governmental fund
balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains nineteen individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General fund, Tax Increment District No. 3 special revenue fund, the G.O.
Improvement Bonds debt service fund, and the Infrastructure Construction capital project fund, which are
considered to be major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements elsewhere in this CAFR.
The basic governmental fund financial statements can be found on pages 26 through 33 of this CAFR.
Proprietary funds
. The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the governmental-wide financial statements.
The City uses enterprise funds to account for its municipal liquor, golf course, Earle Brown Heritage Center,
water, sanitary sewer, storm drainage, recycling/refuse, and street lighting operations. Internal service funds are
an accounting device to accumulate and allocate costs internally among the City’s various functions. The City
uses internal service funds for its central garage, employee retirement, and compensated absences. Because all
of these services predominantly benefit governmental rather than business-type functions, they have been
included within the governmental activities in the government-wide financial statements.
Proprietary funds provide similar information to the government-wide financial statements but in more detail.
The proprietary fund financial statements provide separate information for the municipal liquor, golf course,
Earle Brown Heritage Center, water utility, sanitary sewer utility, and storm drainage utility operations, each of
which are considered to be major funds of the City. Conversely, all internal service funds are combined into a
single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 34 through 39 of this CAFR.
Notes to the financial statements
. The notes provide additional information that is essential to a full
understanding of the data provided in the government–wide and fund financial statements. The notes to the
financial statements can be found on pages 41 through 69 of this CAFR.
Other information.
In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information on budgetary compliance for its major funds. The City
adopts an annual appropriated budget for its general, special revenue, debt service, and capital project funds. A
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Management’s Discussion and Analysis
budgetary comparison statement has been provided for the general and major special revenue fund to
demonstrate compliance with this budget. These can be found on pages 71 through 78 of this CAFR.
The combining statements referred to earlier in connection with nonmajor governmental funds and internal
service funds are presented immediately following the required supplementary information on budgetary
comparisons. Combining and individual fund statements and schedules can be found on pages 80 through 120
of this CAFR.
Government-wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indictor of a government's financial position. In the
case of the City, assets exceeded liabilities by $ 110,892,406 at the close of the most recent fiscal year.
The largest portion of the City's net assets ($ 70,318,894 or 63 percent) reflects its investment in capital assets
(e.g. land, infrastructure, buildings, machinery, and equipment) less any related debt used to acquire those assets
that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the City's investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
CITY'S NET ASSETS
All 2006 comparative balances are net of the adjustments described in Note 3.D. on page 51 of this CAFR.
As of the close of the current year, there is $ 928,588 in G.O. Improvement bond debt included in the Long-
term liabilities outstanding reported in the Governmental Activities that was issued to finance capital assets
reported in the Business-type Activities. This amount is not used to reduce Invested in capital assets net of
related debt in the Governmental Activities. Neither does it reduce Invested in capital Assets of the Business-
type Activities. However, it does reduce the Invested in capital assets, net of related debt in the total column.
A portion of the of the City’s net assets represents resources that are subject to external restrictions on how they
may be used. These restrictions include debt payment from assessments and taxes collected, and tax increments
collected for qualified projects. The remaining balance of unrestricted net assets ($ 18,834,997) may be used to
meet the City's ongoing obligations.
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
assets, both for the government as a whole, as well as for its separate governmental and business-type activities.
The same was true for the prior fiscal year.
Current assets decreased in the governmental activities primarily due to the additional costs to prepare
redevelopment property for sale. In addition, the City has postponed issuing debt to fund the 2007 construction
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Management’s Discussion and Analysis
projects. Funds on hand and interfund borrowing were used to pay for the projects until the debt is issued.
Capital assets increased due to new capitalized assets exceeding depreciation on existing assets for the year.
Total liabilities decreased due to regularly scheduled payments on outstanding bonds. The decrease in restricted
net assets can be attributed to costs associated with the acquisition of redevelopment property in excess of the
estimated net realizable value of that property.
Current assets in the business-type activities increased due to higher per unit fees charged in 2007 on utility
services and a conscious effort to minimize direct costs to provide services in those activities. The decrease in
due to other governments explains the decrease in other liabilities. At the end of 2006, the City had a multi-year
liability payable, which was paid in 2007.
Governmental Activities
Governmental activities resulted in an increase of the City's net assets by $ 3,212,038, while the increase in total
net assets was $ 4,903,220. Key elements of the changes are as follows:
CITY’S CHANGES IN NET ASSETS
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Management’s Discussion and Analysis
In the Governmental Activities, Capital grants and contributions increased due to additional state aid money
received for road construction. Total taxes increased by $ 545,000 because of higher taxes levied and because
excess tax increment collected in prior years was returned to the County and redistributed. Grants and
contributions not restricted increased due to the State’s adjustment of an aid allocation calculation resulting in
the City receiving more general aid. Final costs for cleanup of a prior year storm and road maintenance costs
that are not capitalized account for the increase in public works expenses. Economic development expenses
increased with the purchase and preparation of additional land for redevelopment purposes.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Governmental Activities -2007 Revenues
Other revenues
Unrestricted investment
5.4%
earnings
7.4%
Other taxes
2.8%
Charges for services
11.0%
Operating grants and
contribtutions
3.3%
Capital grants and
Property taxes and tax
contributions
increments
10.6%
59.5%
Governmental Activities -2007 Expenses
Economic development
Interest on long-term
18.4%
debt
5.2%
General government
13.7%
Parks and recreation
12.3%
Community services
0.3%
Public works
Public safety
12.6%
37.5%
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Management’s Discussion and Analysis
Business-type activities
Business-type activities increased net assets by $ 1,691,182. Below are graphs showing the business-type
activities revenue and expense comparisons:
Business-type Activities -2007 Revenues
Unrestricted investment
earnings
3.6%
Net charges for services
96.4%
Business-type Activities -2007 Expenses
Storm drainage utility
Non-major enterprise
11.2%
4.5%
Municipal liquor
10.4%
Sanitary sewer utility
29.3%
Golf course
3.1%
Earle Brown Heritage
Center
Water utility
24.3%
17.2%
Charges for services in the business-type activities were higher in 2007 than in 2006 due to an increase in fees
charged on utility services and increased sales in the municipal liquor and Earle Brown Heritage Center
operations. Expenses decreased in 2007 because in 2006, the City had a large amount due to the Metropolitan
Council Environmental Services for sanitary sewer charges for 2006 and prior. This amount was owed due to a
clerical error on the part of the Metropolitan Council. An expense was recorded in 2006 for the expected
amount due and was carried forward as a liability at 2006 year end. These charges were paid in 2007 when a
settlement was reached between the Metropolitan Council and the City. A transfer of the general aid received
in the Governmental Activities was used for a portion of that payment.
16
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds
. The focus of the City’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. In particular, unreserved fund balance may serve as useful measure of a government’s
net resources available at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
$ 34,435,588. Approximately 33% of this amount, $ 11,289,385, is reserved (restricted in its use) because it has
already been committed to specific uses by outside influences or action of the City Council; 1) $ 6,724,500 to
provide for debt service, 2) $ 792,488 for advances to other funds, 3) $ 518,138 for committed contracts, 4) $
19,932 for prepaid items, and 5) $ 3,234,327 for statutory housing obligation. The unreserved fund balance of $
23,146,203 includes designations of 1) $ 7,941,714 for general fund working capital, 2) $ 11,648,792 for
economic development, and 3) $ 5,090,675 for capital improvements. The deficit balance of $ 1,534,948 is
undesignated and unreserved.
The general fund is the primary operating fund of the City. At the end of the current fiscal year, total fund
balance reached $ 7,942,414, all of which was either reserved or designated. As a measure of the general fund’s
liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance
represents 54% of total general fund expenditures for 2007.
The fund balance of the City’s general fund increased by $ 433,224 in 2007. This increase was due to the
distribution of prior years’ taxes when the City decertified a tax increment district, and an increase in
intergovernmental aid provided by the State of Minnesota.
The Tax Increment District No. 3 fund had a total fund balance of $ 12,642,688 at the end of 2007. The net
decrease in the fund balance was $ 8,084,983. In 2004, the City issued $ 17,245,000 in tax increment bonds,
the proceeds of which must be spent in the Tax Increment District No. 3 fund. The decrease in 2007 represents
the final year of expenditures for the acquisition and development of properties within the district. The
remaining bond proceeds of $ 2,534,809 were transferred to the Tax Increment Bonds debt service fund, as
required by the bond covenants.
The G.O. Improvement Bonds fund had a fund balance of $ 3,026,385 at the end of 2007, all of which was
reserved for debt service. The net decrease in fund balance for 2007 was $ 71,842, which was due to the use of
collections in previous years to pay bond principal and interest as programmed.
The fund balance of the Infrastructure Construction fund at the end of 2007 had a deficit of $ 1,290,428. This
represents a decrease from 2006 of $ 771,129. This decrease is due to the City postponing the issuance of
improvement debt until 2008 to fund projects substantially complete in 2007.
Proprietary funds
. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The unrestricted net assets in the respective major proprietary funds are the municipal liquor fund - $ 1,593,847,
golf course - $ (741,600), Earle Brown Heritage Center - $ 1,025,631, water utility - $ 2,820,808, sanitary sewer
utility - $ 3,380,600 and storm drainage utility - $ 1,708,117. The increases (decreases) in net assets for the
major enterprise funds were: municipal liquor $ 258,549, golf course $ (58,073), Earle Brown Heritage Center
$ (439,548), water utility $ 424,734, sanitary sewer utility $ 920,348, and storm drainage utility $ 573,328.
General Fund Budgetary Highlights
During the year, there were no amendments to the General Fund budget appropriations. Actual revenues and
other financing sources exceeded the budget by $ 943,639. The major contributors to this additional revenue
were distribution of prior years’ taxes from a decertified a tax increment district, an increase in
intergovernmental aid provided by the State of Minnesota, and higher than expected investment earnings.
Actual expenditures and other financing uses were higher than budgeted for the year by $ 510,415. This results
17
Management’s Discussion and Analysis
from transfer of a portion of the additional intergovernmental aid provided by the State to the Sanitary Sewer
Utility fund to pay the prior year’s sewer charges, an increase in personal services paid in public safety due to
staff turnover, and higher than anticipated replacement charges paid to the Central Garage internal service fund.
Capital Asset and Debt Administration
Capital assets
. The City’s investment in capital assets for governmental and business type activities as of
December 31, 2007 totals $ 78,473,894 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, infrastructure, machinery and equipment. The total increase in the City’s investment
in capital assets from 2006 to 2007 was 4.9 percent (11.2 percent increase for governmental activities and a 0.4
percent decrease for business-type activities).
Major capital asset events during the year included the following:
Two major infrastructure reconstruction projects were completed during the year, with a final cost of
$ 4,047,713.
Three infrastructure reconstruction projects were begun and substantially completed during the 2007.
These projects account for $ 6,318,714 in construction-in-progress at the end of the year.
Construction on a new park building started in 2007, accounting for an additional $ 50,949 in
construction-in-progress at the end of the year.
CITY'S CAPITAL ASSETS
(net of depreciation)
Additional information on the City’s capital assets can be found in Note 4.C. on pages 54 through 56 of this
CAFR.
Long-term debt
. At the end of the current fiscal year, the City had long-term bonded debt outstanding of
$ 25,410,000, all of which is backed by the full faith and credit of the government. Of the total outstanding
debt, $ 3,875,000 is general obligation bonds payable from directly levied property tax, $ 17,255,000 is tax
increment bonds payable with the collected proceeds of tax increment projects and $ 4,280,000 is improvement
bonds payable from special assessment levies against individual properties adjacent to the improvements.
Additional long-term liabilities include $ 1,023,706 for compensated absences. This is the accumulated
vacation and vested sick leave not used by employees at the end of 2007.
18
Management’s Discussion and Analysis
CITY’S OUTSTANDING DEBT
General Obligation Bonds, General Obligation Tax Increment Bonds,
General Obligation Improvement Bonds, and Compensated Absences
The City’s total bonded debt decreased by $ 2,540,000 during the current fiscal year due to scheduled debt
retirement. No bonds were issued in 2007.
The City maintains an A1 rating from Moody's on all issues.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of total Estimated
Market Value. The current debt limitation for the City is $ 42,259,958. Only $ 3,875,000 of the City's
outstanding debt is counted within the statutory limitation representing about 9.2 percent of the total limit.
Additional information on the City’s long-term debt can be found in Note 4.F. on pages 58 through 61 of this
CAFR.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City is 5.6 percent at the end of the current fiscal year, which is an
increase from the rate of 4.6 percent a year ago. This compares to the State’s average unemployment
rate of 4.9 percent and the national average of 4.8 percent.
Redevelopment of the Central Business District and other commercial properties continues and will yield
net growth in tax base and stability in tax base through mixed use development goals.
Utility rates have been subjected to rigorous study and projected into a 15 year model to allow for system
maintenance, technology changes and capital repair and replacements while moderating annual rate
adjustments.
All of these factors were considered in the preparation of the City’s budget for the 2008 fiscal year.
During the year, unreserved fund balance in the general fund increased by $ 433,224. This amount will be
added to the fund balance level to stay within the City’s policy of maintaining 50 to 52 percent of the ensuing
year’s budgeted General Fund operations.
Water, sanitary sewer, storm, and street light utility rates were increased for the 2007 budget year. Residential
water rates were increased by 7.2 percent, sanitary sewer by 2.8 percent, storm drainage by 8.5 percent and
street lights by 8.4 percent. These increases were necessary to ensure that the municipal utilities be self-
supporting through revenue, as required by the City charter. These rates along with future projected rate
increases are reviewed annually to ensure compliance with the requirements of the charter.
Requests for information
This financial report is designed to provide a general overview of the City’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Director of Fiscal and Support Services,
City of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
19
20
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 1
STATEMENT OF NET ASSETS
December 31, 2007
Business-Type
Governmenta
l
ASSETS
ActivitiesActivitiesTotal
$40,375,161$ 8,470,048$48,845,209
Cash and investment
s
Receivables:
Accounts248,781 1,989,2662,238,047
Taxes549,508 -549,508
Special assessments3,363,260 461,4473,824,707
Internal balances968,829 (968,829)-
Due from other government785,637 -785,637
s
Prepaid expenses19,932 181,928201,860
Inventories59,647 557,928617,575
Assets held for resale6,785,629 6,785,629-
Restricted assets:
Cash and investment161,000 -161,000
s
Capital assets:
ondepreciable7,505,828 5,491,63512,997,463
N
Depreciable30,501,174 34,975,25765,476,431
Total assets91,324,386 51,158,680142,483,066
LIABILITIES
Accounts payable466,814 206,697673,511
ccrue saares an wages, ,,
Accruedsalariesandwages34335244968388320
Adlid34335244968388320
Due to other governments64,149 69,569 133,718
Contracts payable272,605 173,356445,961
Deposits payable2,225 220,940223,165
Accrued interest payable461,686 -461,686
Unearned revenue21,205 131,006152,211
Liabilities payable from restricted assets:
Deposits payable161,000 -161,000
Compensated absences payable:
Due within one yea102,350 -102,350
r
Due in more than one yea921,356 -921,356
r
Health insurance liability:
101,500 -101,500
Due within one yea
r
-2,415,882 2,415,882
Due in more than one yea
r
Bonds payable:
Due within one yea -2,610,000 2,610,000
r
Due in more than one yea22,800,000 22,800,000-
r
Total liabilities30,744,124 846,53631,590,660
NET ASSETS
Invested in capital assets, net of related debt30,780,590 40,466,89270,318,894
Restricted for:
Debt service8,662,597 8,662,597-
Tax increment purposes13,075,918 13,075,918-
Unrestricted8,061,157 9,845,25218,834,997
Total net assets$60,580,262$ 50,312,144$110,892,406
The accompanying notes are an integral part of these financial statements.The accompanying notes are an integral part of these financial statements.
21
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2007
Charges Fo
r
FUNCTIONS/PROGRAMS
ExpensesServices
Primary government:
Government activities:
$2,953,328$902,734
General governmen
t
Public safet8,051,836847,307
y
Public works2,704,435 241,035
Community service 74,389-
s
Parks and recreation2,624,897692,781
Economic developmen3,966,90849,498
t
Interest on long-term deb1,127,276-
t
Total government activities21,503,0692,733,355
Business-type activities:
Municipal liquor1,037,4271,362,093
Golf course313,794252,738
Earle Brown Heritage Center2,431,7192,168,033
Recycling and refus 245,256257,300
e
Street light utilit 234,230191,659
y
Water utilit1,716,4972,063,930
y
Sanitary sewer utilit2,930,0163,274,678
y
Storm drainage utilit1,123,6361,412,548
y
Total business-type activities10,002,04811,013,506
Total primary governmen$31,505,117$13,746,861
t
The accompanying notes are an integral part of these financial statements.
22
Statement 2
Program Revenueset (Expense) Revenue and Changes in Net Assets
N
OperatingCapitalPrimary Governmen
t
Grants anGrants anGovernmentaBusiness-Type
ddl
ContributionsContributionsActivitiesActivitiesTotal
$ -$ -$(2,050,594)$ -$(2,050,594)
662,511 -(6,542,018) -(6,542,018)
97,876 2,646,320280,796 -280,796
- -(74,389) -(74,389)
- -(1,932,116) -(1,932,116)
58,602 -(3,858,808) -(3,858,808)
- -(1,127,276) -(1,127,276)
818,989 2,646,320(15,304,405) -(15,304,405)
- --324,666324,666
- --(61,056)(61,056)
- --(263,686)(263,686)
- --(12,044)(12,044)
- -- 42,57142,571
- --347,433347,433
- --344,662344,662
- --288,912288,912
- --1,011,4581,011,458
$ 818,989$ 2,646,320(15,304,405)1,011,458(14,292,947)
General revenues:
Property taxes12,200,575 -12,200,575
Tax increments2,677,630 -2,677,630
Lodging taxes706,930 -706,930
Grants and contributions not
restricted to specific programs1,263,753 -1,263,753
1,852,117406,6542,258,771
Unrestricted investment earning
s
Gain on disposal of capital asset88,508 -88,508
Transfers(273,070)273,070-
Total general revenues and transfers18,516,443679,72419,196,167
Change in net assets3,212,0381,691,1824,903,220
et assets - beginning, as previously state 46,221,81459,883,983 106,105,797
Nd
Prior period adjustment(2,515,759)2,399,148(116,611)
et assets - beginning, restate 48,620,96257,368,224 105,989,186
Nd
et assets - ending$60,580,262$50,312,144$110,892,406
N
23
24
FUND FINANCIAL STATEMENTS
25
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
Tax Incremen
t
GeneralDistrict No. 3
ASSETS
Cash and investment$8,317,017$12,754,462
s
Receivables:
Accounts56,929-
Current taxes96,9386,464
Delinquent taxes349,8979,143
Special assessments--
24,82829,765
Due from other government
s
Interfund receivable--
Prepaid items700-
Inventories26,604-
Advances to other funds--
Asset held for resale-6,748,629
Restricted assets:
Cash and investments-performance deposit161,000-
s
Total assets9,033,913 19,548,463
LIABILITIESANDFUNDBALANCES
LIABILITIESANDFUNDBALANCES
Liabilities:
Accounts payable239,93761,122
Accrued salaries and wages326,828621
Due to other governments3,75253,270
Contracts payable-32,990
Deposits payable2,225-
Interfund payable--
Deferred revenue357,7576,757,772
Liabilities payable from restricted assets:
Deposits payable161,000-
Total liabilities1,091,4996,905,775
Fund balances:
Reserved:
Advances from other funds--
Committed contracts--
Debt service--
Prepaid items700-
Statutory housing obligatio 3,234,327-
n
Unreserved:
Designated, reported in:
General Fun -7,941,714
d
Special Revenue Funds- 9,408,361
Capital Project Funds- -
Undesignated, reported in:
Special Revenue Funds--
Capital Project Funds--
Total fund balances7,942,41412,642,688
Total liabilities and fund balances$9,033,913$19,548,463
The accompanying notes are an integral part of these financial statements.The accompanying notes are an integral part of these financial statements.
26
Statement 3
Page 1 of 2
Othe
r
G.O. ImprovemenInfrastructureonmajoTotal
tNr
GovernmentaGovernmenta
BondsConstructio
nll
$ 3,018,165$-$9,449,221$33,538,865
-17,545165,846240,320
258-9,195112,855
16,910-60,703436,653
2,345,6211,017,639-3,363,260
--731,044785,637
--1,054,5631,054,563
--19,23219,932
---26,604
--792,488792,488
--37,0006,785,629
---161,000
5,380,9541,035,18412,319,29247,317,806
-17,32575,325393,709
--9,994337,443
--7,12764,149
-238,3461,269272,605
---2,225
-1,054,563-1,054,563
2,354,5691,015,378111,04810,596,524
---161,000
2,354,5692,325,612204,76312,882,218
--792,488792,488
-334,218183,920518,138
3,026,385-3,698,1156,724,500
--19,23219,932
---3,234,327
---7,941,714
--2,240,40111,648,762
--5,090,6755,090,675
--89,69889,698
-(1,624,646)-(1,624,646)
3,026,385(1,290,428)12,114,52934,435,588
$1,035,184$12,319,292$47,317,806
$5,380,954
27
CITY OF BROOKLYN CENTER, MINNESOTAStatement 3
Page 2 of 2
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
Fund balance - governmental funds is different from net assets - governmental activities because
:
Total fund balances (Statement 3)$34,435,588
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported in the funds.34,362,356
Other long-term assets are not available to pay for current-period expenditures
and, therefore, are deferred in the funds.10,575,319
Long-term liabilities, including bonds payable, are not due and payable in
the current period and therefore are not reported in the funds.(25,871,686)
Internal service funds are used by management to charge the cost of certain
activities to individual funds. The assets and liabilities
are included in the governmental statement of net assets.7,078,685
et assets of governmental activities (Statement 1)$60,580,262
N
28
29
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Tax Incremen
t
GeneralDistrict No. 3
REVENUES
Property taxes$11,088,016$-
Tax increments-1,707,470
Franchise fees--
Lodging taxes706,930-
Special assessments--
Licenses and permits673,156-
58,6021,797,631
Intergovernmenta
l
Charges for services693,300-
Fines and forfeits291,423-
Investment earnings (net of market value adjustment256,581737,462
)
Miscellaneous81,88447,390
Total revenues15,588,9212,550,924
EXPENDITURES
Current:
General governmen -2,870,943
t
Public safet -7,352,905
y
Public works1,967,385-
Community service74,389-
s
Parks and recreation2,271,093-
Economic developmen335,7295,023,461
t
ondepartmental354,848-
N
Administrative services reimbursemen(744,590)-
t
Capital outlay:
General governmen112,283-
t
Public safet6,569-
y
Public works--
Parks and recreation22,420-
1,179,136-
Economic developmen
t
Debt service:
Principal retirement--
Interest--
Fiscal agent fees--
Total expenditures14,623,9746,202,597
Revenues over (under) expenditures964,947(3,651,673)
OTHER FINANCING SOURCES (USES)
Transfers in--
Transfers out(531,723)(4,433,310)
--
Return excess tax increment to Count
y
Total other financing sources (uses)(531,723) (4,433,310)
et increase (decrease) in fund balances433,224(8,084,983)
N
Fund balances - January 17,509,19020,727,671
Fund balances - December 31$7,942,414$12,642,688
The accompanying notes are an integral part of these financial statements.
30
Statement 4
Othe
r
G.O. ImprovemenInfrastructureonmajoTotal
tNr
GovernmentaGovernmenta
BondsConstructio
nll
$ -2,140$$1,004,203$12,094,359
--1,020,1672,727,637
--658,620658,620
---706,930
882,121482,292-1,364,413
---673,156
--1,315,5123,171,745
--12,436705,736
---291,423
117,381-408,0791,519,503
-35,286239,860404,420
1,001,642517,5784,658,87724,317,942
--80,2452,951,188
--197,5297,550,434
-74,536268,9252,310,846
---74,389
--43,0062,314,099
--300,1415,659,331
---354,848
---(744,590)
-112,283
--
---6,569
-1,975,0781,178,0893,153,167
--50,94973,369
---1,179,136
900,000-1,886,0762,786,076
162,486-971,9261,134,412
10,998-1,89812,896
1,073,4842,049,6144,978,78428,928,453
(71,842)(1,532,036)(319,907)(4,610,511)
-760,9075,120,3505,881,257
--(1,053,596)(6,018,629)
--(529,138)(529,138)
-760,9073,537,616(666,510)
(71,842)(771,129)3,217,709(5,277,021)
3,098,227(519,299)8,896,82039,712,609
$ 3,026,385$(1,290,428)$12,114,529$34,435,588
31
32
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 5
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, 2007
Amounts reported for governmental activities in the statement of activities are different because:
et changes in fund balances - total governmental funds (Statement 4$(5,277,021)
N)
Governmental funds report capital outlays as expenditures. However, in the statement o
f
activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation expense. This is the amount by which capital outlays exceeded depreciation
in the current period.2,737,094
Revenues in the statement of activities that do not provide current financial resources are no
t
reported as revenues in the funds.2,766,100
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consume
s
the current financial resources of governmental funds. Neither transaction, however, ha
s
any effect on net assets. This amount is the net effect of these differences in the treatmen
t
of long-term debt and related items.2,540,000
Internal service funds are used by management to charge the cost of certain activities to
individual funds. This amount is net revenue attributable to governmental activities.425,833
Accrued interest reported in the statement of activities does not require the use of current financial
resources and, therefore, is not reported as expenditures in governmental funds.20,032
Change in net assets of governmental activities (Statement 2
$3,212,038
)
The accompanying notes are an integral part of these financial statements.
33
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF FUND NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
ASSETS
Current assets:
Cash and cash equivalents$1,199,465$ 50,970$1,151,030
Receivables:
Accounts - ne -9,357 306,830
t
Special assessments- --
Prepaid items21,988 -4,668
Inventories508,450 2,58830,820
Total current assets1,739,260 53,5581,493,348
oncurrent assets:
N
Capital assets:
Lan 1,390,402- 1,493,300
d
Land improvement 40,258- 327,830
s
Buildings and structures192,771 487,94611,039,134
Machinery and equipmen 11,160111,167 195,529
t
Mains and lines- --
Construction in progress- --
Total capital assets303,938 1,929,76613,055,793
Less: Allowance for depreciatio (267,044)(229,301) (6,313,397)
n
et capital assets 1,662,72274,637 6,742,396
N
Total assets1,813,897 1,716,2808,235,744
LIABILITIES
Current liabilities:
Accounts payable83,412 1,16836,010
Accrued salaries payable12,471 1,48716,937
Due to other governments49,084 1519,574
Contracts payable- -173,356
Deposits payable- -220,240
Unearned revenue446 -1,600
Advances from other funds- 792,488-
Compensated absences payable-curren -- -
t
-- -
Accrued health insurance liability-curren
t
Total current liabilities145,413 795,158467,717
oncurrent liabilities:
N
-- -
Compensated absences payable-long-ter
m
-- -
Accrued health insurance liability-long-ter
m
Total noncurrent liabilities- --
Total liabilities145,413 795,158467,717
NET ASSETS
Invested in capital assets74,637 1,662,7226,742,396
Unrestricted1,593,847 (741,600)1,025,631
Total net assets$1,668,484$ 921,122$7,768,027
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
et assets of business-type activitie
Ns
The accompanying notes are an integral part of these financial statements.
34
Statement 6
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
Storm DrainageonmajoTotalInternalTotal
WaterSanitary Sewe
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 2,464,1162,068,788$ 1,380,820$ $154,859$8,470,048$ 6,836,296$15,306,344
460,294 771,418 332,084109,2831,989,266 8,4611,997,727
459,133 2,083 231 461,447- 461,447-
500 154,772- 181,928- 181,928-
16,070 -- 557,928- 33,043590,971
3,004,785 3,392,389 1,713,135264,14211,660,617 6,877,80018,538,417
23,093 3,389 287,158 3,197,342- 3,197,342-
- -- 368,088- 166,108534,196
3,033,212 2,705,423- 17,458,486- 17,458,486-
128,668 179,130- 625,654- 7,089,6897,715,343
15,946,152 14,322,663 18,301,381 48,570,196- 48,570,196-
576,662 434,687 1,282,944 2,294,293- 2,294,293-
7,255,79779,769,856
19,707,787 17,645,292 19,871,483 72,514,059-
(11,062,475) (8,591,385) (5,583,565) (32,047,167)- (3,611,151)(35,658,318)
8,645,312 9,053,907 14,287,918 40,466,892- 3,644,64644,111,538
11,650,097 12,446,296 16,001,053264,14252,127,509 10,522,44662,649,955
43,829 8,857 3,46929,952206,697 73,105279,802
9,592 2,932 1,549-44,968 5,90950,877
896 ---69,569-69,569
- -- 173,356- 173,356-
700 -- 220,940- 220,940-
128,960 -- 131,006- 131,006-
- -- 792,488- 792,488-
- ---- 102,350102,350
- ---- 101,500101,500
183,97711,789 5,01829,9521,639,024 282,8641,921,888
- ---- 921,356921,356
- --- 2,415,882- 2,415,882
- --- 3,337,238- 3,337,238
183,977 11,789 5,01829,9521,639,024 3,620,1025,259,126
8,645,312 9,053,907 14,287,918 40,466,892- 3,644,64644,111,538
2,820,808 3,380,600 1,708,117234,19010,021,5933,257,69813,279,291
$11,466,120$ 12,434,507$ 15,996,035$234,19050,488,485$ 6,902,344$57,390,829
(176,341)
$50,312,144
The accompanying notes are an integral part of these financial statements.
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
OPERATING REVENUES
Sales and user fees$5,474,634$ 252,620$4,325,296
Cost of sales4,125,816 -2,162,075
Total operating revenues1,348,818 252,6202,163,221
OPERATING EXPENSES
Personal services529,966 139,344909,332
Supplies24,279 44,718142,428
Other services157,556 76,455534,008
Insurance11,527 6,60048,179
Utilities36,669 19,969220,430
Ren -245,407 -
t
Depreciation26,359 27,170577,535
Total operating expenses1,031,763 314,2562,431,912
Operating income (loss)317,055 (61,636)(268,691)
NONOPERATING REVENUES (EXPENSES)
Intergovernmenta -- -
l
Investment earning 3,44553,219 54,331
s
Special assessments- --
Gain (loss) on sale of capital asset- --
Other revenue13,275 1184,812
Total nonoperating revenues (expenses)66,494 3,56359,143
Income (loss) before contributions and transfers383,549 (58,073)(209,548)
Capital contributions- --
Transfers in- --
Transfers out(125,000) -(230,000)
Change in net assets258,549 (58,073)(439,548)
et assets - January 1, as previously state1,409,935 979,1958,207,575
Nd
Prior period adjustment- --
et assets - January 1, restated1,409,935 979,1958,207,575
N
et assets - December 31$1,668,484$ 7,768,027921,122$
N
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities (Statement 2)
The accompanying notes are an integral part of these financial statements.
36
Statement 7
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
Storm DrainageonmajoTotalInternalTotal
WaterSanitary Sewe
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 2,039,679$ 3,272,528$ 1,412,548$478,106$17,255,411$ 1,553,635$18,809,046
- -- 6,287,891- 6,287,891-
2,039,679 3,272,528 1,412,548478,10610,967,520 1,553,63512,521,155
425,869 169,781 85,786 2,260,078- 499,1362,759,214
156,404 16,262 9,6271,042394,760 392,966787,726
385,303 2,179,409 291,957277,7993,902,487 148,0534,050,540
12,589 5,329 2,7803,08190,085 55,102145,187
151,237 35,572 167,037-630,914 1,870632,784
- -- 245,407- 245,407-
586,462 525,655 734,525 2,477,706- 529,8933,007,599
1,717,864 2,932,008 1,124,675448,95910,001,437 1,627,02011,628,457
321,815 340,520 287,87329,147966,083 (73,385)892,698
- ---- 9,8429,842
78,668 115,955 92,2988,738406,654 332,414739,068
18,695 166--18,861 -18,861
- ---- 88,50888,508
5,556 1,984-1,38027,125 10,38437,509
102,919 118,105 92,29810,118452,640 441,148893,788
424,734 458,625 380,17139,2651,418,723 367,7631,786,486
- 193,157- 193,157- 193,157-
461,723- - 461,723- 57,459519,182
- --(26,810)(381,810) (381,810)-
424,734 920,348 573,32812,4551,691,793 425,2222,117,015
11,041,386 11,514,159 13,023,559221,73546,397,544 6,477,12252,874,666
- 2,399,148- 2,399,148- 2,399,148-
11,041,386 11,514,159 15,422,707221,73548,796,692 6,477,12255,273,814
$ 11,466,120$ 12,434,507$ 15,996,035$234,190$50,488,485$ 6,902,344$57,390,829
(611)
$1,691,182
37
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Major
MunicipalGolfEarle Brown
LiquoCourseHeritage Cente
rr
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users$5,473,017$ 4,219,457252,620$
-
Receipts from interfund services provided - -
Payments to suppliers(4,637,244) (148,086)(3,129,685)
Payments to employee (139,027)(527,273) (909,140)
s
Miscellaneous revenue 118
13,275 4,812
et cash flows provided (used) by operating activities (34,375)
N
321,775 185,444
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in-
- -
Transfers out(125,000) (230,000)-
Special assessments-
- -
et cash flows provided (used) by noncapital financing activities(125,000) (230,000)-
N
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets-
- -
Proceeds from sale of assets-
- -
et cash flows provided (used) by capital and related financing activities-
N
- -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 3,445
53,219 54,331
et increase (decrease) in cash and cash equivalents (30,930)
N
249,994 9,775
Cash and cash equivalents - January 1 81,900
949,471 1,141,255
Cash and cash equivalents - December 31$1,199,465$ 50,970$1,151,030
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) $317,055$ (61,636)$(268,691)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation 27,170
26,359 577,535
Changes in assets and liabilities:
(Increase) decrease in receivables(1,578) (83,269)-
(Increase) decrease in inventories (803)(3,719)
2,762
(Increase) decrease in prepaid expenses(556)-
831
Increase (decrease) in payables(38,196) 459(42,247)
Increase (decrease) in accrued expenses 317
2,693 192
Increase (decrease) in deferred revenue(39)-
-
Other nonoperating income 118
13,275 4,812
Total adjustments 27,261
4,720 454,135
et cash flows provided (used) by operating activities$321,775$ (34,375)$185,444
N
Noncash financing activities:
Capital contributions$-$-$-
Gain on sale of assets-
- -
The accompanying notes are an integral part of these financial statements.
38
Statement 8
Business-Type ActivitiesGovernmenta
l
EnterpriseOtheActivities-
r
Storm DrainageonmajoTotalInternalTotal
WaterSanitary Sewe
rNr
UtilitUtilitUtilitEnterpriseEnterpriseServiceProprietary
yyy
$ 1,966,196$ 3,411,210$ 1,413,605$485,334$17,221,439$ 17,221,439-$
- --- 1,560,256- 1,560,256
(703,222) (2,846,679) (302,502)(421,450)(12,188,868) (620,433)(12,809,301)
(423,676) (170,587) (85,590) (2,255,293)- (476,067)(2,731,360)
5,556 1,984-1,38027,125 20,22647,351
844,854 395,928 1,025,51365,2642,804,403 483,9823,288,385
461,723- - 461,723- 57,459519,182
- --(26,810)(381,810) (381,810)-
(89,582) 426--(89,156) (89,156)-
(89,582) 462,149-(26,810)(9,243) 57,45948,216
(576,661) (436,649) (1,090,487) (2,103,797)- (1,619,325)(3,723,122)
- ---- 93,41093,410
(1,525,915)(3,629,712)
(576,661) (436,649) (1,090,487) (2,103,797)-
78,668 115,955 92,2988,738406,654 332,414739,068
257,279 537,383 27,32447,1921,098,017 (652,060)445,957
1,811,509 1,926,733 1,353,496107,6677,372,031 7,488,35614,860,387
$ 2,068,788$ 2,464,116$ 1,380,820$154,859$8,470,048$ 6,836,296$15,306,344
$ 321,815$ 340,520$ 287,873$29,147$966,083$ (73,385)$892,698
586,462 525,655 734,525 2,477,706- 529,8933,007,599
(80,274) 138,682 1,0577,228(18,154) 6,310(11,844)
2,579 ---819 (3,073)(2,254)
- (4,922)--(4,647) -(4,647)
382 (605,185) 1,86227,509(655,416) (19,369)(674,785)
2,193 (806) 196-4,785 23,38028,165
6,141 ---6,102 -6,102
-1,38027,125 20,22647,351
5,5561,984
523,039 55,408 737,64036,1171,838,320 557,3672,395,687
$ 844,854$ 395,928$ 1,025,513$65,264$2,804,403$ 483,982$3,288,385
$ -$ 193,157-$ $-$ -
- --- 88,508
39
40
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
The City of Brooklyn Center was incorporated in 1911 and has operated under a Council/Manager form of
government since the adoption of the City charter in 1966. The governing body consists of a mayor and four
City Council members elected at-large to serve four-year staggered terms. The City provides a full range of
municipal services to its citizens, including public safety (police and fire protection), highways and streets,
parks and recreation, public improvements, planning and inspections, economic development, sanitary and
storm sewer, water, and general administrative services.
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City have been prepared in accordance with accounting principles generally
accepted in the United States of America (GAAP), as applied to governmental units by the Governmental
Accounting Standards Board (GASB). The City also applies Financial Accounting Standards Board (FASB)
statements and interpretations issued prior to December 1, 1989 to its governmental and business-type activities
at the government-wide financial reporting level and to its proprietary funds at the fund reporting level,
provided they do not conflict with or contradict GASB pronouncements.
The City’s significant accounting policies are described below.
A. REPORTING ENTITY
The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are
not legally separate from the City. Component units are legally separate organizations for which the
elected officials of the City are financially accountable and are included within the basic financial
statements of the City because of the significance of their operational or financial relationships with the
City.
The City is considered financially accountable for a component unit if it appoints a voting majority of the
organization’s governing body and is able to impose its will on the organization by significantly
influencing the programs, projects, activities, or level of services performed or provided by the
organization, or there is a potential for the organization to provide specific financial benefits to, or impose
specific financial burdens on, the City.
Blended component units, although legally separate, are, in substance, part of the government’s operations.
A blended component unit is reported as if it were a fund of the City throughout the year. It is included at
both the government-wide and fund financial reporting levels.
A description of the City’s blended component units follows:
City of Brooklyn Center Housing and Redevelopment Authority (HRA)
- The City Council serves as the
Board of Directors for the HRA. The Council reviews and approves the tax levy and all expenditures for
the HRA. The HRA is reported as a Special Revenue Fund. The HRA does not issue separate financial
statements. Financial information may be obtained at the City’s offices.
City of Brooklyn Center Economic Development Authority (EDA)
– The governing board for the EDA is
the City Council. The council reviews and approves major community development improvement
activities. City general obligation tax increment financing bonds are issued to finance EDA activities. The
EDA is reported in the Economic Development Authority, Earle Brown TIF District, TIF District No. 3,
TIF District No. 4, and the Community Development Block Grant Special Revenue Funds; the Tax
Increment Bonds Debt Service Fund; the Earle Brown Heritage Center Improvements Capital Project
Fund; and the Earle Brown Heritage Center Enterprise Fund. The EDA does not issue separate financial
statements. Financial information may be obtained at the City’s offices.
41
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in
net assets) report information on all activities of the primary government and its component units.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or business-type activity. Taxes and other items not included
among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes and special assessments are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting.However, debt service expenditures, as
well as expenditures related to claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
government.
42
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
(Continued)
The government reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Tax Increment District No. 3 Special Revenue Fund has the authority to collect tax increments
which are used for various redevelopment projects within the City and for debt service payments of
bonds which were issued for the same purpose.
TheG. O. Improvement Bonds Debt Service Fund is used to account for the accumulation of resources
for the payment of improvement bonds. These bonds were sold to finance certain public
improvements such as residential streets and storm sewers or the provision of services which are to be
paid for wholly or in part from special assessments levied against benefited property.
TheInfrastructure Construction Capital Project Fund was established to account for the resources and
expenditures required for the acquisition and construction of capital facilities or improvements
financed wholly or in part by special assessments levied against benefited properties.
The government reports the following major enterprise funds:
TheMunicipal Liquor Fund accounts for the operations of the City’s municipal off-sale liquor stores.
TheGolf Course Fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf
course owned by the City.
TheEarle Brown Heritage Center Fund accounts for the operation of a convention center. The Earle
Brown Heritage Center is a pioneer farmstead that has been historically preserved and restored as a
modern multipurpose facility. Its convention center can host conferences, trade shows, and concerts.
TheWater Utility Fund accounts for the pumping, treatment and distribution of water to customers.
Administration, wells, water storage, and distribution are included.
The Sanitary Sewer Utility Fund accounts for the collection and pumping of sanitary sewage through a
system of sewer lines and lift stations. Sewage is treated by the Metropolitan Council Environmental
Services whose fees represent about 62% of this fund’s expenses.
TheStorm Drainage Utility Fund accounts for the collection and treatment of surface runoff water that
does not require sanitary wastewater treatment. It incorporates not only the storm sewer collection
system, but also structures such as holding ponds and facilities to improve water quality. Fees are
based upon the quantity of water running off a property and vary with both size and absorption
characteristics of the parcel.
43
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
(Continued)
Additionally, the government reports the following fund type:
Internal Service Funds account for compensated absences, health care insurance benefits and central
garage services provided to other departments of the City on a cost reimbursement basis.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures
or expenses if they involved external organizations, such as buying goods and services or payments in lieu
of taxes. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
enterprise funds and internal service funds are charges to customers for sales and services. Operating
expenses for enterprise funds and internal service funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
D. CASH AND INVESTMENTS
The City considers all highly liquid investments with a maturity of three months or less when purchased to
be cash equivalents. All of the cash and investments allocated to the proprietary funds have original
maturities of 90 days or less.
44
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
D. CASH AND INVESTMENTS
(Continued)
The City’s investment policy authorizes the City to invest in the following:
a) Securities that 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 bills, notes, bonds 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.
Adjustments necessary to record investments at fair value are recorded in the operating statement as
increases or decreases in investment earnings. Investment income on commingled funds is allocated
monthly, based on month-end balances.
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. Short-term interfund loans are classified as “interfund receivable/payable.” All
short-term interfund receivables and payables at December 31, 2007 are planned to be eliminated in 2008.
Long-term interfund loans are classified as “advances to/from other funds.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable financial resources.
The City expects to make full collection of all trade and property tax receivables, so no allowance is
considered necessary.
45
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
E. RECEIVABLES AND PAYABLES
(Continued)
Property tax levies are submitted to the County in December each year. The County allocates these levies
across taxable properties in the City based on valuations certified in the prior year. The County collects
these levies and distributes the City’s proceeds in June and December of the fiscal year. These taxes are
reported as general revenues in the government-wide financial statements in the year levied. Unpaid taxes
at December 31 become liens on the respective property and are classified as delinquent receivables and
are fully offset by deferred revenue in the fund financial statements.
F. INVENTORIES AND PREPAID ITEMS
Inventories in the governmental funds are reported using the consumption method and valued at cost, using
the first in/first out (FIFO) method. Inventories in the proprietary funds are valued at cost, using the
weighted average method in the Municipal Liquor and Earle Brown Heritage Center Funds and the FIFO
method in all other funds.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements.
G. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost in excess of the amounts below and an estimated useful life in excess
of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
Infrastructure $ 250,000
Buildings and Building Improvements 50,000
Land Improvements 25,000
Heavy Equipment 25,000
Furniture and furnishings 10,000
Motorized vehicles 10,000
Technology equipment 10,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed. For the year ended December 31, 2007 no interest was
capitalized in connection with construction in progress.
46
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
G. CAPITAL ASSETS
(Continued)
Capital assets of the City, as well as the component units, are depreciated using the straight line method
over the following estimated useful lives:
Land improvements 25 years
Buildings and structures 25 years
Water and sewer mains and lines, wells and storage
tanks, sewer lift stations 25 years
Infrastructure 25 years
Machinery and equipment 5-15 years
H. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation and vested sick leave pay is accrued in the Public Employee Compensated Absences fund. A
liability for these amounts is reported in governmental funds only if they have matured, for example, as a
result of employee resignations and retirements. In accordance with the provisions of Statement of
Government Accounting Standards No. 16, Accounting for Compensated Absences, a liability is
recognized for that portion of accumulating sick leave benefits that is vested, or expected to vest, as
severance pay.
I. LONG TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
J. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net
assets for proprietary funds. Fund equity in the government-wide financial statements is classified as net
assets for both governmental and business-type activities.
Fund balance
– Generally, fund balance represents the difference between current assets and current
liabilities. The City reserves those portions of fund balance which are legally segregated for a specific
future use or which do not represent available, spendable resources and are therefore not available for
general appropriation or expenditure. Unreserved fund balance indicates that portion of fund balance that
is available for appropriation in future periods. Designations are management’s intent to set aside these
resources for specific purposes.
47
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
J. FUND EQUITY
(Continued)
Net assets
– Net assets represent the difference between assets and liabilities. Net assets, invested in
capital assets net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the
outstanding balances of any bonds used for the acquisition, construction, or improvement of those assets.
Net assets are reported as restricted when there are limitations imposed on their use either through
constitutional provisions or enabling legislation, or through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments. All other net assets are reported as unrestricted.
When both restricted and unrestricted resources are available for an allowable use, it is the government’s
policy to use restricted resources first, then unrestricted resources as they are needed.
K. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues and expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are
reported as transfers.
L. USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual
results could differ from such estimates.
M. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) recently approved the following statements
which were not implemented in these financial statements. The effect these standards may have on future
financial statements has not been determined at this time.
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefit Plans
other than Pension Plans. This statement, which the City will be required to adopt in 2008, provides
guidance on all aspects of postemployment benefit reporting by employers. The City has not yet assessed
the impact of the adoption of Statement No. 45 on its financial statements.
Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligation. This
statement provides guidance on how to calculate and report the costs and obligations associated with
pollution cleanup efforts. The provisions of this statement are effective for financial statements for periods
beginning after December 31, 2007.
48
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances – total governmental funds and changes in net assets
of governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense.” The details of this $ 2,737,094 difference are as follows:
Another element of that reconciliation states that “Revenues in the Statement of Activities that do not
provide current financial resources are not reported as revenues in the funds.” The details of this
$ 2,766,100 difference are as follows:
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
ANT THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
(Continued)
Another element of that reconciliation states that “The issuance of long-term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of principal of the long-
term debt consumes the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets.” The details of this $ 2,540,000 difference are as follows:
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States for all governmental funds. All annual appropriations lapse at fiscal year end.
In August, the City Manager submits to the City Council proposed operating budgets for the fiscal year
commencing the following January. The proposed general fund budget and preliminary tax levy must be
certified to the County prior to September 15. The Council holds public hearings on the certified budget
and levy and must submit a final levy to the County prior to the end of December.
The appropriated budget is prepared by fund and department. The City Council must authorize any
transfer of budgeted amounts between departments or funds. Transfers of budgeted amounts within
departments in the General Fund must be authorized by the City Manager. The legal level of budgetary
control is the department level for the General Fund and the fund level for all other governmental funds.
There were no material supplemental budgetary appropriations during the year.
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
(Continued)
B. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
For the year ended December 31, 2007 expenditures exceeded appropriations in the following General
Fund departments and special revenue funds:
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 3 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
(Continued)
C. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2007 in the following funds:
The deficits are being funded through internal borrowing and will be repaid from construction transfers
from utility funds, future bond issuance, investment earnings, and internal transfers.
D. PRIOR PERIOD ADJUSTMENTS
FUND STATEMENTS
In 2007, curb and gutter infrastructure capital assets were moved from the general capital assets to the
Storm Drainage Enterprise Fund. The beginning value of net assets in this Storm Drainage fund was
increased by $ 2,399,148, which includes $ 116,611 in construction in progress and $ 2,282,537 net book
value of those assets previously completed.
GOVERNMENT-WIDE STATEMENTS
In 2006, a contribution from the Storm Drainage Utility Fund to an infrastructure construction project was
included twice in the calculation of construction in progress in the Governmental Activities. This amount
was removed in 2007 decreasing beginning Net Assets in the Governmental Activities by $ 116,611.
In 2007, curb and gutter infrastructure capital assets were moved from the Governmental Activities to the
Business-Type Activities. Beginning Net Assets in the Governmental Activities was reduced and
beginning Net Assets in the Business-Type Activities was increased by $ 2,282,537, the net book value of
these assets, to reflect this change.
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks
authorized by the City Council. All such depositories are members of the Federal Reserve System.
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
(Continued)
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 below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that securities
pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than
that furnishing the collateral.
At year-end, the City’s carrying value amount of deposits was $ 712,025 composed of bank balances of
$ 552,669. All balances were covered by federal depository insurance or by perfected collateral held by
the Federal Reserve Bank.
As of December 31, 2007 the City had the following investments and maturities:
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
(Continued)
Interest rate risk – The City’s investment policy requires interest earnings remain stable and predictable
through at least the next budget cycle and that at least 50% of the investment portfolio remain for two or
more years with known interest rates. The policy also states that the portfolio shall remain sufficiently
liquid to meet all operating requirements that may be reasonably expected.
Credit risk – The City’s investment policy restricts investment instruments to those authorized by
Minnesota Statutes §118A. The policy also requires that any counterparty in investment transactions be
pre-qualified and approved by the City Council and that the portfolio be diversified to limit potential losses
on individual securities. As of December 31, 2007 the City’s investment in FNMA and FHLB notes were
all rated AAA by Moody’s Investor Service. The City’s external investment pool is with 4M which is
regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M
fund is an unrated 2a7-like pool and the fair value of the position in the pool is the same as the value of the
pool shares.
Custodial credit risk – The City’s investment policy requires that securities purchased from any bank or
dealer be placed with an independent third party for custodial safekeeping. All of the City’s investments
were held in an institutional trust under contract with the City for safekeeping services.
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2007 are as
follows:
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the end
of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the
governmental funds were as follows:
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
B. RECEIVABLES
(Continued)
The City has leased a portion of the police second floor expansion area to the Local Government
Information Systems Association (LOGIS) as a backup computer facility. The lease has a term of six
years, commencing on August 1, 2005, and calls for monthly lease payments based on the square-footage.
Lease revenue for the year ended December 31, 2007 was $ 8,694. Future minimum lease payments are as
$ 8,694 annually through 2010 and $ 5,072 for 2011.
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2007 was as follows:
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
C. CAPITAL ASSETS
(Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
C. CAPITAL ASSETS
(Continued)
CONSTRUCTION COMMITMENTS
At December 31, 2007 the City had construction project contracts in progress. The commitments related to
remaining contract balances are summarized as follows:
D. INTERFUND BALANCES AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2007 are as follows:
The $792,488 advance between the Golf Course and Capital Improvements funds is not expected to be
eliminated within one year of December 31, 2007.
Interfund payables/receivables are representative of lending/borrowing arrangements to cover deficit cash
balances at the end of the fiscal year. Balance will be paid with transfers from other funds, collections of
outstanding receivables, and the issuance of bonds to finance completed infrastructure projects.
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS
(Continued)
Interfund transfers:
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
D. INTERFUND BALANCES AND TRANSFERS
(Continued)
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund or to provide additional capital and infrastructure funding. In addition,
interfund transfers are occasionally authorized to allow redistribution of resources between funds for the
most efficient use of funds. In 2007, the transfer from the General Fund to the Technology Fund is used to
fund the ongoing needs of the City’s information technology requirements. The transfer from the General
Fund to the Sanitary Sewer Utility Fund was made to offset an unanticipated charge for sewer treatment
services. Transfers from the Tax Increment District No. 3 fund to the Tax Increment Bonds fund were
made to transfer unspent bond proceeds to the debt service fund, as required by the bond covenants, in
addition to paying the 2007 debt service requirements for the bonds. The $ 57,459 from the City Initiatives
Grant fund to the Central Garage fund was made to move funds that were specifically donated for the
purchase of fire engines. Transfers from the Municipal State Aid and Street Light Utility funds to the
Infrastructure Construction Fund were used to fund certain street construction projects.
E. OPERATING LEASES
The City leases space for its municipal liquor stores. The leases are both ten-year leases and began in 2000
and 2003. Both leases have options for a ten-year extension. 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, 2007 was $ 242,801. Future minimum base rent payments under the current agreements are
as follows:
F. LONG-TERM DEBT
The City issues general obligation bonds to provide funds for the construction of major capital facilities,
construction of infrastructure, and economic development and redevelopment. General obligation bonds
have been issued for governmental activities.
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG-TERM DEBT
(Continued)
As of December 31, 2007 the long-term debt of the financial reporting entity consisted of the following:
GOVERNMENTAL ACTIVITIES
All long-term bonded indebtedness outstanding at December 31, 2007 is backed by the full faith and credit
of the City, including improvement and tax increment bond issues. Bonds in the governmental activities
will be retired by future property tax levies, tax increments or special assessments accumulated in the
specific debt services funds. In the event that a deficiency exists because of unpaid or delinquent tax
increments or special assessments at the time a debt service payment is due, the City must provide
resources to cover the deficiency until other resources are available. Delinquent tax increments in the
governmental funds at December 31, 2007 were $ 9,143; delinquent special assessments in the
governmental funds at December 31, 2007 were $ 44,419, which is included in the special assessments
receivable balance of $ 3,363,260.
The G.O. Improvement Bonds were issued to finance the construction and replacement of street and storm
drainage capital assets. Of the $ 4,280,000 outstanding at December 31, 2007 the amounts applicable to
street and storm capital assets is $ 3,351,412 and $ 928,588, respectively.
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG-TERM DEBT
GOVERNMENTAL ACTIVITIES (Continued)
Annual debt service requirements to maturity for long-term debt are as follows:
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2007 was as follows:
Compensated absences are liquidated by the Public Employees Compensated Absences 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.
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
F. LONG-TERM DEBT
CONDUIT DEBT OBLIGATIONS (Continued)
As of December 31, 2007 there were three series of fixed rate Multifamily Housing Revenue Refunding
bonds, one Housing Revenue Development Refinancing Note, one series of Variable Rate Demand
Refunding Industrial Revenue Bonds, two Healthcare Revenue Notes, and four Senior Housing
Development Revenue Notes outstanding. The aggregate amount of conduit debt obligations at December
31, 2007 is $ 31,224,291.
G. FUND EQUITY
Net assets reported in the government-wide statement of net assets at December 31, 2007 include the
following:
Related debt for governmental activities capital assets includes $ 3,875,000 in General Obligation Bonds
and $ 3,351,412 in G.O. Improvement Bonds, the amount issued to finance the street portion of
construction projects. The remaining $ 928,588 of the G.O. Improvement Bonds outstanding was issued to
finance the storm drainage portion of construction projects.
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY
(Continued)
Governmental fund balances reported on the fund financial statements as of December 31, 2007 include the
following:
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 DETAILED NOTES ON ALL FUNDS
G. FUND EQUITY
(Continued)
Note 5 OTHER INFORMATION
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions and natural disasters.
Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust
(LMCIT), a public entity risk pool currently operating as a common risk management and insurance
program for Minnesota cities: general liability, property, automobile, mobile property and marine, crime,
employee dishonesty, boiler, and open meeting law. The City pays an annual insurance premium to the
LMCIT for its insurance coverage. The City is subject to supplemental assessments if deemed necessary
by the LMCIT. Currently, the LMCIT is self-sustaining through member premiums and reinsures through
commercial companies for claims in excess of various amounts. The City retains risk for the deductible
portions of the insurance policies. The amount of these deductibles is considered immaterial to the
financial statements.
Workers’ compensation coverage is provided through a pooled self-insurance program through the
LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental
assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers’ Compensation
Reinsurance Association (WRCA) as required by law. For workers’ compensation, the City is not subject
to a deductible. The City’s workers’ compensation is retroactively rated. With this type of coverage, final
premiums are determined after loss experience is known. The amount of premium adjustment, if any, is
considered immaterial and not recorded until received or paid.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three years.
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
(Continued)
B. EMPLOYEE RETIREMENT PLANS
1. DEFINED BENEFIT PENSION PLAN
PLAN DESCRIPTION
All full-time and certain part-time employees of the City are covered by defined benefit plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are
established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate in
the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership
by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member’s highest average salary for
any five successive years of allowable service, age, and years of credit at termination of service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA,
60 Empire Drive Suite 200, St. Paul, Minnesota, 55103-2088 or by calling 651-296-7460 or 800-652-
9026.
FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. PERF Coordinated Plan members are
required to contribute 5.75% of their annual covered salary. PEPFF members are required to
contribute 7.80% of their annual covered salary. The City is required to contribute the following
percentages of annual covered payroll: 6.25% for Coordinated Plan PERF members and 11.70% for
PEPFF members. The City’s contributions to the Public Employees Retirement Fund for the years
ending December 31, 2007, 2006, and 2005 were $ 392,528, $ 363,334, and $ 326,886, respectively.
The City’s contributions to the Public Employees Police and Fire Fund for the years ending December
31, 2007, 2006, and 2005 were $ 374,495, $ 318,913, and $ 274,868, respectively. The City’s
contributions were equal to the contractually required contributions for each year as set by state
statute.
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
(Continued)
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
PLAN DESCRIPTION
The City contributes to the Brooklyn Center Fire Department Relief Association (the Association)
which is the administrator of a single employer, public employee defined benefit retirement system to
provide a retirement plan (the Plan) to volunteer firefighters of the City who are members of the
Association. The Association is organized and operates under the provisions of Minnesota State
Statutes 424A, and provides benefits in accordance with those statutes.
The Association provides retirement benefits to members and survivors, upon death of eligible
members. Benefits are established by the Association and approved by the City Council under the
applicable statutes. The defined retirement benefits are based on a member’s years of service. Vesting
begins after the 10th year of service with a 60% benefit increasing to 100% after the 20th year of
service.
Full benefits are available after 20 years of service by the member and having attained the age of 50.
The current benefit available is a lump sum distribution of $ 7,500 per year of service. Vested,
terminated members who are entitled to benefits but are not yet receiving them are bound by the
provisions in effect at the time of termination of membership.
The Association issues a financial report that includes financial statements and required supplementary
information for the Brooklyn Center Fire Department Relief Association. That report is available at
the City of Brooklyn Center City offices.
FUNDING POLICY
The City levies property taxes at the direction of and for the benefit of the Plan and passes through
state aids allocated to the Plan, all in accordance with enabling State statutes.The minimum tax levy
obligation is the financial contribution requirement for the year less anticipated state aids.
CONTRIBUTIONS
Total contributions to the plan in 2006 were $ 161,019 of which all was from the State of Minnesota.
The actuarially determined contribution based on an actuarial valuation performed at January 1, 2005
was $ 39,597, which represents funding for normal cost of $ 79,135 and amortization of the excess
over the actuarial accrued liability of ($ 39,538). Actual contributions have continued at higher levels
to allow for a transition to a defined contribution plan in the future. These higher payments are
irrevocable and do not affect the level of future City contributions, nor do they constitute an asset of
the City.
The City’s $ 161,019 contribution to the Association in 2006 was recorded as intergovernmental
revenue and fire department expenditure in the General Fund.
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
B. EMPLOYEE RETIREMENT PLANS
2. PENSION PLAN – BROOKLYN CENTER FIRE DEPARTMENT RELIEF
ASSOCIATION
(Continued)
The information below is the most recent data available.
THREE YEAR TREND INFORMATION
SCHEDULE OF FUNDING PROGRESS
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
(Continued)
C. 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 the years 1997 and 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.
D. 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.
E. 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.
A schedule of the notes outstanding at December 31, 2007 is as follows:
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CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
(Continued)
F. POST-EMPLOYMENT HEALTH CARE BENEFITS
The City has provided post-employee health care benefits, as per the requirements of the City Council
resolution, for certain retirees and their dependents since 1986. Full time employees have the option of
retaining membership in the City’s health insurance plan for which the City will pay the single person
premium until such time as the retiree is eligible for Medicare coverage or at age 65, whichever is sooner.
If the retiree desires to continue family coverage, the additional cost for family coverage shall be paid by
the retiree to the City. There are two methods whereby an employee can qualify under this program. First,
the employee, on the date of his/her retirement, must meet eligibility requirements for a full retirement
annuity under PERA without reduction of benefits because of age, disability, or any other reason for
reduction. In addition, the employee must have been employed full time by the City for the last ten
consecutive years prior to the effective date of retirement. Additionally, employees who are retiring after
twenty-five years of consecutive service with the City and are eligible to receive a pension from PERA
shall have the option of retaining membership in the City’s health insurance plan for which the employee
will pay the premium until such time as the retiree is eligible to receive a full-retirement annuity under
PERA or PEPFF. At that time, the City will pay the single-person premium until such time as the retiree is
eligible for Medicare coverage or at age 65, whichever is sooner. Employees participate in this program on
a voluntary basis.
As of December 31, 2007, 13 employees currently participate in this program. The cost of City paid health
care premiums for the years ended December 31, 2007 was $ 86,708. Fund liabilities are paid on a pay-as-
you-go basis with investment earnings of the Fund. The $ 2,517,382 recorded as a liability is not an
actuarially determined amount, but the City’s best estimate of the future liability.
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
2007 financial statements of the City is $ 368,195 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 2007 health and life insurance costs paid by the City was $ 1,135,055.
Complete financial statements may be obtained from Stanton Group located at 3405 Annapolis Lane,
Plymouth, Minnesota 55447.
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 OTHER INFORMATION
G. JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
(Continued)
The Brooklyn Center Fire Department Relief Association (the Association)
The Association is organized as a nonprofit organization, legally separate from the City, by its members to
provide pension and other benefits to members in accordance with Minnesota Statutes. Its board of
directors is elected by the membership of the Association and not by the City Council. The Association
issues its own set of financial statements. All funding is conducted in accordance with applicable
Minnesota Statutes, whereby state aids flow to the Association, tax levies are determined by the
Association and are only reviewed by the City. The Association pays benefits directly to its members. The
Association may certify tax levies to Hennepin County directly if the City does not carry out this function.
Because the Association is fiscally independent of the City, the financial information of the Association
has not been included within the City’s financial statements. (See Note 5.B.2. for disclosures relating to
the pension plan operated by the Association.) Complete financial statements for the Association may be
obtained at the City offices located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
H. SUBSEQUENT EVENT
In January 2008, the EDA sold the property at 6300 Earle Brown Drive to Brooklyn Hotel Partners for $1.
The property had been removed from the Earle Brown Tax Increment District in October 2006.
In February 2008, the EDA approved a development agreement and real estate option agreement with the
U.S. General Services Administration for the property at 1501 Freeway Blvd. At December 31, 2007 this
property is reported as Assets held for resale in Tax Increment District No. 3 at a net realizable value of
$ 2,526,829.
In April 2008, the City purchased the property at 2500 County Road 10 from 1277 LLC for $ 6,475,243
for redevelopment. This property will be recorded in the Tax Increment District No. 3 fund as Assets held
for resale at cost, not to exceed net realizable value, until the property is sold.
In April 2008, the City sold $4,335,000 in Tax Increment Financing Bonds, the proceeds of which will be
used to finance the acquisition, demolition, clearance, and site preparation in target redevelopment areas
within the City’s Tax Increment District No. 3.
70
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 1 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
REVENUES
Taxes:
Property taxes10,720,993$$10,720,993$ 10,498,537$(222,456)
Market value homestead credit-- 573,464573,464
Penalties and interest-- 16,01516,015
Lodging ta650,000650,000 706,93056,930
x
Total taxes11,370,99311,370,993 11,794,946423,953
Licenses and permits:
Liquor and beer licenses114,800114,800 68,504(46,296)
Building permits285,000285,000 333,71548,715
Mechanical permits60,00060,000 58,031(1,969)
Sewer and water permits1,0001,000 1,921921
Plumbing permits30,00030,000 25,041(4,959)
Garbage licenses3,1503,150 3,120(30)
Taxicab licenses100100 -(100)
Mechanical licenses4,2004,200 5,9181,718
Service station licenses2,4552,455 1,915(540)
Vehicle dealer licenses1,5001,500 1,688188
Bowling licenses720720 720-
Cigarette licenses3,0003,000 2,288(712)
Sign permits2,0002,000 5,0403,040
Rental dwelling license226,308226,308 115,512(110,796)
s
Amusement license 1,3451,345 1,040 (305)
s
Electrical Permits30,000 30,000 38,735 8,735
ROW permits1,0001,000 50(950)
Miscellaneous licenses and permits4,8654,865 9,9185,053
Total licenses and permits771,443771,443 673,156(98,287)
Intergovernmental:
Federal:
Other federal grants-- 1,6461,646
State:
Local government ai767,665767,665 1,229,388461,723
d
Police pension aid280,000280,000 306,75326,753
PERA aid34,36534,365 34,365-
Fireperson pension aid150,000150,000 139,441(10,559)
Police training-- 17,68717,687
Local:
Miscellaneous grants58,00058,000 68,35110,351
Total intergovernmental1,290,0301,290,030 1,797,631507,601
Charges for services:
General government charges31,04031,040 37,4266,386
Public safety charges13,50013,500 24,82811,328
Recreation fees293,601293,601 296,4312,830
Community Center fee332,650332,650 334,6151,965
s
Total charges for services670,791670,791 693,30022,509
71
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 2 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Revenues (continued):
Fines and forfeits240,000$ 240,000$ 291,423$ 51,423$
Miscellaneous:
Investment earnings (net of market value change156,015156,015 256,581100,566
)
Othe45,100 81,88445,100 36,784
r
Total miscellaneous201,115201,115 338,465137,350
Total revenues14,544,37214,544,372 15,588,9211,044,549
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services50,82950,829 47,3263,503
Materials and supplies1,2001,200 1,862(662)
Services and other charges77,25077,250 71,7325,518
Total mayor and council129,279129,279 120,9208,359
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services501,058501,058 453,68647,372
Materials and supplies6,8506,850 5,6891,161
Services and other charges29,12529,125 36,765(7,640)
Total administrative office537,033537,033 496,14040,893
Elections and voter registration:
Current:
Personal services56,74656,746 58,749(2,003)
Materials and supplies1,0001,000 -1,000
Services and other charges28,90028,900 3,73325,167
Total elections and voter registration86,64686,646 62,48224,164
Assessor's office:
Current:
Personal services249,824249,824 242,1867,638
Materials and supplies2,3752,375 2,118257
Services and other charges39,91239,912 40,795(883)
285,0997,012
Total assessor's office292,111292,111
Finance:
Current:
Personal services477,017477,017 447,49529,522
Materials and supplies4,0004,000 5,023(1,023)
Services and other charges12,30012,300 9,0483,252
Total finance493,317493,317 461,56631,751
72
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 3 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures:
General government (continued):
Legal:
Current:
Services and other charges335,000$ 335,000$ 373,757$ (38,757)$
Government buildings:
Current:
Personal services272,443 272,443 242,209 30,234
Materials and supplies51,70051,700 71,628(19,928)
Services and other charges307,718307,718 407,719(100,001)
Total current631,861631,861 721,556(89,695)
Capital outla107,532107,532 112,283(4,751)
y
Total government buildings739,393739,393 833,839(94,446)
Information technology:
Current:
Personal services185,938185,938 187,119(1,181)
Materials and supplies14,10014,100 10,7783,322
Services and other charges170,510170,510 151,52618,984
Total information technolog370,548370,548 349,42321,125
y
Total general governmen
2,983,3272,983,327 2,983,226 101
t
Public safety:
Police protection:
Current:
Personal services4,821,8584,821,858 4,876,333(54,475)
Materials and supplies105,972109,172 98,36310,809
Services and other charges864,872861,672 861,813(141)
Total current5,792,7025,792,702 5,836,509(43,807)
7,3747,374 6,569 805
Capital outla
y
Total police protection5,800,0765,800,076 5,843,078(43,002)
Fire protection:
Current:
Personal services521,954521,954 521,653301
Materials and supplies99,60099,600 81,04818,552
Services and other charges238,301238,301 269,311(31,010)
Total fire protection859,855859,855 872,012(12,157)
Protective inspection:
Current:
Personal services437,027437,027 479,209(42,182)
Materials and supplies4,0504,050 10,185(6,135)
Services and other charges122,759122,759 101,82820,931
Total protective inspection563,836563,836 591,222(27,386)
73
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 4 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures:
Public safety (continued):
Emergency preparedness:
Current:
Personal services56,547$ 56,547$ 48,782$ 7,765$
Materials and supplies2,4002,400 4941,906
Services and other charges6,0656,065 3,8862,179
Total emergency preparedness65,01265,012 53,16211,850
Total public safety7,288,7797,288,779 7,359,474(70,695)
Public works:
Engineering department:
Current:
Personal services486,645486,645 533,907(47,262)
Materials and supplies9,3759,375 9,904(529)
Services and other charges41,35941,359 40,0891,270
Total current537,379537,379 583,900(46,521)
Capital outla 2,0002,000 - 2,000
y
Total engineering department539,379539,379 583,900(44,521)
Street department:
Current:
Personal services741,016741,016 714,39026,626
Materials and supplies137,250137,250 105,26731,983
Services and other charges501,502501,502 563,828(62,326)
Total street department1,379,7681,379,768 1,383,485(3,717)
Total public works1,919,1471,919,147 1,967,385(48,238)
Community services:
Social services:
Current:
Services and other charges80,95180,951 74,3896,562
Parks and recreation:
Administration:
Current:
Personal services494,220494,220 513,420(19,200)
Materials and supplies10,80010,800 13,200(2,400)
Services and other charges59,29059,290 51,3027,988
Total current564,310564,310 577,922(13,612)
Capital outla 1,2001,200 - 1,200
y
Total administration565,510565,510 577,922(12,412)
74
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 5 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures:
Parks and recreation (continued):
Adult programs:
Current:
Personal services60,533$ 60,533$ 42,594$ 17,939$
Materials and supplies15,75015,750 17,088(1,338)
Cost of good sold to public20,20020,200 21,174(974)
Services and other charges91,08091,080 124,165(33,085)
Total adult programs187,563187,563 205,021(17,458)
Teen programs:
Current:
Personal services3,4623,462 4,453(991)
Materials and supplies600600 51783
Total teen programs4,0624,062 4,970(908)
Youth programs:
Current:
Personal services36,66436,664 38,977(2,313)
Materials and supplies9,1259,125 9,707(582)
Services and other charges150150 -150
Total youth programs45,93945,939 48,684(2,745)
General programs:
Current:
Personal services5,6045,604 4,0511,553
Materials and supplies7070 -70
Services and other charges8,0008,000 13,080(5,080)
Total general programs13,67413,674 17,131(3,457)
Community center:
Current:
Personal services418,225418,225 432,702(14,477)
Materials and supplies22,60022,600 6,56216,038
Services and other charges66,27563,275 79,661(16,386)
Total current507,100504,100 518,925(14,825)
Capital outla17,500 12,88320,500 7,617
y
Total community cente524,600524,600 531,808(7,208)
r
Park maintenance:
Current:
Personal services534,473534,473 529,1995,274
Materials and supplies61,47561,475 60,0961,379
Services and other charges284,401284,401 309,145(24,744)
Total current880,349880,349 898,440(18,091)
9,8009,800 9,537 263
Capital outla
y
Total park maintenance890,149890,149 907,977(17,828)
Total parks and recreation2,231,4972,231,497 2,293,513(62,016)
75
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 9
REQUIRED SUPPLEMENTARY INFORMATION
Page 6 of 6
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmount(Negative)
s
Expenditures (continued):
Economic development:
Convention bureau:
Current:
Services and other charges308,750$ 308,750$ 335,729$ (26,979)$
ondepartmental:
N
Expenditures not charged to departments:
Current:
Personal services59,63159,631 53,4326,199
Materials and supplies18,50018,500 18,910(410)
Services and other charges429,290429,290 282,506146,784
Total nondepartmental507,421507,421 354,848152,573
Total expenditures15,319,87215,319,872 15,368,564(48,692)
Revenues over (under) expenditures(775,500)(775,500) 220,357995,857
OTHER FINANCING SOURCES (USES)
Transfers in - administrative services reimburse845,500845,500 744,590(100,910)
d
Transfers to other funds(70,000)(70,000) (531,723)(461,723)
Total other financing sources (uses)775,500775,500 212,867(562,633)
et increase (decrease) in fund balance$-$- 433,224$433,224
N
Fund balance - January 1 7,509,190
Fund balance - December 31$ 7,942,414
76
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 10
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - TAX INCREMENT DISTRICT NO. 3
For the Year Ended December 31, 2007
Variance wit
h
Final Budget -
Budgeted AmountsPositive
OriginalFinalActual(Negative)
REVENUES
Taxes:
Tax increments2,200,100$$2,200,100$ 1,701,717$(498,383)
Market value homestead credit-- 5,7535,753
Intergovernmenta -- 58,602 58,602
l
Investment earnings (net of market value adjustment320,000320,000 737,462417,462
)
Miscellaneous-- 47,39047,390
Total revenues2,520,1002,520,100 2,550,92430,824
EXPENDITURES
Current:
Economic development:
Personal services-- 37,574(37,574)
Supplies-- 368(368)
Services and other charges187,500187,500 4,985,519(4,798,019)
Capital outlay:
Economic developmen -- 1,179,136 (1,179,136)
t
Total expenditures187,500187,500 6,202,597(6,015,097)
Revenues over (under) expenditures2,332,6002,332,600 (3,651,673)(5,984,273)
OTHER FINANCING SOURCES (USES)
Transfers out(1,918,455)(1,918,455) (4,433,310)(2,514,855)
et increase (decrease) in fund balance$414,145$414,145 (8,084,983)$(8,499,128)
N
Fund balance - January 1 20,727,671
Fund balance - December 31$ 12,642,688
77
CITY OF BROOKLYN CENTER, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2007
Note A LEGAL COMPLIANCE – BUDGET
The General Fund and Tax Increment District No. 3 Special Revenue Fund budgets are legally adopted on a
basis consistent with accounting principles generally accepted in the United States of America. The legal level
of budgetary control is the department level for the General Fund and the fund level for all other governmental
funds. The following General Fund departments and major special revenue funds had expenditures in excess of
budgeted appropriations:
78
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources
that are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and
payment of, interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
79
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 11
COMBINING BALANCE SHEET
ONMAJOR GOVERNMENTAL FUNDS
N
December 31, 2007
Total
SpecialDebtCapitalonmajo
Nr
RevenueServiceProjectGovernmenta
l
ASSETS
Cash and investment$ 3,691,2092,328,271$ 3,429,741$ 9,449,221$
s
Receivables:
Accounts-- 165,846165,846
Current taxes2,2896,906 -9,195
Delinquent taxes15,48945,214 -60,703
Due from other government53,003- 678,041731,044
s
Interfund receivable- 1,054,563- 1,054,563
Prepaid items19,232- -19,232
Advances to other funds-- 792,488792,488
Assets held for resale37,000- -37,000
Total assets2,455,2843,743,329 6,120,67912,319,292
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable22,998- 52,32775,325
Accrued salaries and wages9,994- -9,994
Due to other governments7,127- -7,127
Contracts payable-- 1,2691,269
Deferred revenue65,83445,214 111,048-
Total liabilities105,95345,214 53,596204,763
Fund balances:
Reserve19,2323,698,115 976,4084,693,755
d
Unreserved:
Designate -2,240,401 5,090,675 7,331,076
d
Undesignate89,698- -89,698
d
Total fund balances2,349,3313,698,115 6,067,08312,114,529
Total liabilities and fund balances$2,455,284$3,743,329$ 6,120,679$12,319,292
80
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR GOVERNMENTAL FUNDS
N
For the Year Ended December 31, 2007
Total
SpecialDebtCapitalonmajo
Nr
RevenueServiceProjectGovernmenta
l
REVENUES
Property taxes$ 741,464262,739$ -$ 1,004,203$
Tax increments1,020,167- 1,020,167-
Franchise fees-- 658,620658,620
Intergovernmenta -126,667 1,188,845 1,315,512
l
Charges for services12,436- -12,436
Investment earnings (net of market value adjustment 32,416113,408 262,255 408,079
)
Miscellaneous42,163- 197,697239,860
Total revenues1,577,580773,880 2,307,4174,658,877
EXPENDITURES
Current:
General governmen-- 80,24580,245
t
Public safet -197,529 - 197,529
y
Public works-- 268,925268,925
Parks and recreation32,446- 10,56043,006
Economic developmen -300,141 - 300,141
t
Capital outlay:
Public works- 1,178,089- 1,178,089
Parks and recreation-- 50,94950,949
Debt service:
Principal retirement246,0761,640,000 1,886,076-
Interest-971,926 971,926-
Fiscal agent fees-1,898 -1,898
Total expenditures776,1922,613,824 1,588,7684,978,784
Revenues over (under) expenditures801,388(1,839,944) 718,649(319,907)
OTHER FINANCING SOURCES (USES)
Transfers in262,0404,433,310 425,0005,120,350
Transfers out(319,499) (734,097)- (1,053,596)
Return excess tax increment to Count(529,138)- (529,138)-
y
Total other financing sources (uses)(586,597)4,433,310 (309,097)3,537,616
et increase (decrease) in fund balances214,7912,593,366 409,5523,217,709
N
Fund balances - January 12,134,5401,104,749 5,657,5318,896,820
Fund balances - December 31$2,349,331$3,698,115$ 6,067,083$12,114,529
81
82
NONMAJOR SPECIAL REVENUE FUNDS
The City of Brooklyn Center had the following Special Revenue Funds during the year:
Housing and Redevelopment Authority Fund (HRA)
- This fund has authority to levy an
ad valorem property tax for the purpose of conducting housing and redevelopment
projects. These projects are accounted for in the EDA Fund; all tax proceeds are
transferred to that fund.
Economic Development Authority Fund (EDA) - This fund was established to account
for the Economic Development Authority (EDA) of Brooklyn Center. The EDA carries
out development activities; it has authority to operate an enterprise. The Earle Brown
Heritage Center operates under this authority, as well as the tax increment financing
activities. The EDA also does redevelopment and housing projects, funded by an ad
valorem property tax levy and transfers from the CDBG and HRA funds.
Earle Brown Tax Increment District – This fund has the authority to collect tax
increments which are used for the historic restoration of the Earle Brown Farm and for
debt service payments on bonds which were issued for the same purpose.
Tax Increment District No. 4 Fund – This fund has the authority to collect tax increments
which are used for various redevelopment projects within the City and for debt service
payments of bonds which were issued for the same purpose.
Police Drug Forfeiture Fund - This fund was established to account for property and/or
cash seized by Police Department personnel.
Community Development Block Grant Fund (CDBG) - This fund was established to
account for funds received under Title I of the Housing and Community Development
Act of 1974.
City Initiatives Grant Fund – Revenues and expenditures from grants received from
outside entities are accounted for in this fund. Programs include several federal, state,
and local public safety grants, and state and local recreation grants.
83
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
ONMAJOR SPECIAL REVENUE FUNDS
N
December 31, 2007
Housing anEconomic
d
Developmen
Redevelopmen
tt
AuthoritAuthorit
yy
ASSETS
Cash and investment$ 1,831,552-$
s
Receivables:
Current taxes2,289-
Delinquent taxes15,489-
Due from other government --
s
Prepaid items --
Asset held for resale -37,000
Total assets17,7781,868,552
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -13,586
Accrued salaries and wages -3,941
Due to other governments --
Deferred revenue15,48937,000
Total liabilities15,48954,527
Fund balances:
Reserved:
Prepaid items --
Unreserved:
Designated:
2,2891,814,025
Economic developmen
t
Undesignate --
d
Total fund balances2,2891,814,025
Total liabilities and fund balances$17,778$1,868,552
84
Statement 13
Total
Earle BrownTaxPoliceCitonmajo
yNr
Tax IncremenIncremenDrugInitiativesSpecial
tt
DistricDistrict No. 4ForfeitureGranRevenue
tt
$ 304,825$ 126,389$-$ 65,505$2,328,271
- -- -2,289
- -- -15,489
- -- 53,00353,003
- -16,213 3,01919,232
- -- -37,000
304,825 126,38916,213121,5272,455,284
- -1,410 8,00222,998
- -- 6,0539,994
7,127 -- -7,127
- -- 13,34565,834
7,127 -1,410 27,400105,953
- -16,213 3,01919,232
297,698 126,389- -2,240,401
- -(1,410) 91,10889,698
297,698 126,38914,803 94,1272,349,331
$ 304,825$ 126,389$16,213$121,527$2,455,284
85
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR SPECIAL REVENUE FUNDS
N
For the Year Ended December 31, 2007
Housing anEconomicEarle Brown
d
DevelopmenTax Incremen
Redevelopmen
ttt
AuthoritAuthoritDistric
yyt
REVENUES
Property taxes$ -262,739$ -$
Tax increments- - 743,363
Intergovernmenta- --
l
Charges for services- --
Investment earnings (net of marke
t
value adjustment)- 83,63621,608
Miscellaneous- 2,109-
Total revenues262,739 85,745764,971
EXPENDITURES
Current:
Public safety:
Personal services- --
Supplies- --
Services and other charges- --
Total public safety- --
Parks and recreation:
Personal services- --
Supplies- --
Services and other charges- --
Total parks and recreation- --
Economic development:
Personal services-160,212900
Supplies- 2,018-
Services and other charges395133,3572,528
Total economic development395295,5873,428
Debt service:
Principal- --
Total expenditures395295,5873,428
Revenues over (under) expenditures262,344(209,842)761,543
OTHER FINANCING SOURCES (USES)
Transfers in-262,040-
Transfers out(262,039) --
- -(529,138)
Return excess tax increment to Count
y
Total other financing sources (uses)(262,039)262,040(529,138)
et increase (decrease) in fund balances305 52,198232,405
N
Fund balances - January 11,9841,761,82765,293
Fund balances - December 31$2,289$1,814,025$297,698
86
Statement 14
Total
TaxPoliceCommunitCitonmajo
yyNr
IncremenDrugDevelopmenInitiativesSpecial
tt
District No. 4ForfeitureBlock GrantGranRevenue
t
$ -$ -$-$ -$262,739
276,804 -- -1,020,167
- --126,667126,667
- -- 12,43612,436
1,010 1,689- 5,465113,408
- 23,778- 16,27642,163
277,814 25,467-160,8441,577,580
- --109,292109,292
- 16,791- 19,84736,638
- 42,782- 8,81751,599
- 59,573-137,956197,529
- -- 5,1405,140
- -- 7,2227,222
- -- 20,08420,084
- -- 32,44632,446
78 -- -161,190
- -- -2,018
653 -- -136,933
731 -- -300,141
246,076 -- -246,076
246,807 59,573-170,402776,192
31,007 (34,106)- (9,558)801,388
- -- -262,040
- -(1)(57,459)(319,499)
- -- -(529,138)
- -(1)(57,459)(586,597)
31,007 (34,106)(1)(67,017)214,791
95,382 48,9091161,1442,134,540
$ 126,389$ 14,803$-$ 94,127$2,349,331
87
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 15
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Taxes:
Property taxes$ 265,000265,000$ $248,833
Market value homestead credit- -13,906
Total revenues265,000 265,000262,739
EXPENDITURES
Current:
Economic development:
Services and other charges- -395
Revenues over (under) expenditures265,000 265,000262,344
OTHER FINANCING SOURCES (USES)
Transfers out(265,000) (265,000)(262,039)
et increase (decrease) in fund balance$-$ -305
N
Fund balance - January 11,984
Fund balance - December 31$2,289
88
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 16
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$18,000$ 18,000$83,636
)
Miscellaneous- -2,109
Total revenues18,000 18,00085,745
EXPENDITURES
Current:
Economic development:
Personal services201,925 201,925160,212
Supplies3,650 3,6502,018
Services and other charges72,212 72,212133,357
Total expenditures277,787 277,787295,587
Revenues over (under) expenditures(259,787) (259,787)(209,842)
OTHER FINANCING SOURCES (USES)
Transfers in265,000 265,000262,040
et increase (decrease) in fund balance$5,213$ 5,21352,198
N
Fund balance - January 11,761,827
Fund balance - December 31$1,814,025
89
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 17
SPECIAL REVENUE FUND - EARLE BROWN TAX INCREMENT DISTRICT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Taxes:
Tax increments$ 783,200783,200$ $736,236
Market value homestead credit- -7,127
17,00017,000 21,608
Investment earnings (net of market value adjustment
)
Total revenue800,200 800,200764,971
EXPENDITURES
Current:
Economic development:
Personal services- -900
Services and other charges35,000 35,0002,528
Total expenditures35,000 35,0003,428
Revenues over (under) expenditures765,200 765,200761,543
OTHER FINANCING SOURCES (USES)
Return of excess tax increment to Count -- (529,138)
y
et increase (decrease) in fund balance$ 765,200765,200$ 232,405
N
Fund balance - January 165,293
Fund balance - December 31$297,698
90
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 18
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, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Tax increments$238,400$ 238,400$276,804
Investment earnings (net of market value adjustment -- 1,010
)
Total revenues238,400 238,400277,814
EXPENDITURES
Current:
Economic development:
Personal services- -78
Services and other charges- -653
Total economic development- -731
Debt service:
Principal238,400 238,400246,076
Total expenditures238,400 238,400246,807
et increase (decrease) in fund balance$-$ -31,007
N
Fund balance - January 195,382
Fund balance - December 31$126,389
91
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 19
SPECIAL REVENUE FUND - POLICE DRUG FORFEITURE
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$1,000$ 1,000$1,689
)
Miscellaneous28,000 28,00023,778
Total revenues29,000 29,00025,467
EXPENDITURES
Current:
Public safety:
Supplies7,500 7,50016,791
Services and other charges8,500 8,50042,782
Total public safety16,000 16,00059,573
Capital outlay:
Public safet 13,00013,000 -
y
Total expenditures29,000 29,00059,573
et increase (decrease) in fund balance$-$ -(34,106)
N
Fund balance - January 148,909
Fund balance - December 31$14,803
92
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 20
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, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$195,019$ 195,019$-
l
EXPENDITURES
Current:
Economic development:
Services and other charges195,019 195,019-
Revenues over (under) expenditures- --
OTHER FINANCING SOURCES (USES)
Transfers out- -(1)
et increase (decrease) in fund balance$-$ -(1)
N
Fund balance - January 11
Fund balance - December 31$-
93
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 21
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$ --$ $126,667
l
Charges for services11,187 11,18712,436
Investment earnings (net of market value adjustment2,048 2,0485,465
)
Miscellaneous19,774 19,77416,276
Total revenues33,009 33,009160,844
EXPENDITURES
Current:
Public safety:
Personal services- -109,292
Supplies- -19,847
Services and other charges- -8,817
Total public safety- -137,956
Parks and recreation:
Personal services10,075 10,0755,140
Supplies7,145 7,1457,222
Services and other charges23,287 23,28720,084
Total parks and recreation40,507 40,50732,446
Total expenditures40,507 40,507170,402
Revenues over (under) expenditures(7,498)(7,498)(9,558)
OTHER FINANCING SOURCES (USES)
Transfers out- -(57,459)
et increase (decrease) in fund balance$(7,498)$ (7,498)(67,017)
N
Fund balance - January 1161,144
Fund balance - December 31$94,127
94
NONMAJOR DEBT SERVICE FUNDS
The City's Debt Service Funds account for the following types of bonded indebtedness:
General Obligation Bonds Fund
– This fund is used to account for the accumulation of
resources for payment of general obligation bonds and interest thereon.
Tax Increment Bonds Fund – This fund is used to account for the payment of tax
increment general obligation bonds and interest thereon. These bonds were sold to
finance the purchase and redevelopment of various redevelopment projects within the
City. Financing for this debt is transferred from the Tax Increment District No. 3 Fund as
needed.
95
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 22
COMBINING BALANCE SHEET
ONMAJOR DEBT SERVICE FUNDS
N
December 31, 2007
Total
GeneralTaxonmajo
Nr
ObligationIncremenDebt
t
BondsBondsService
ASSETS
Cash and investment$ 2,534,8091,156,400$ $3,691,209
s
Receivables:
Current taxes6,906 -6,906
Delinquent taxes45,214 -45,214
Total assets1,208,520 2,534,8093,743,329
LIABILITIES AND FUND BALANCE
Liabilities:
Deferred revenue45,214 -45,214
Fund balances:
Reserved:
Debt service1,163,306 2,534,8093,698,115
Total liabilities and fund balances$1,208,520$ 2,534,809$3,743,329
96
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 23
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR DEBT SERVICE FUNDS
N
For the Year Ended December 31, 2007
Total
GeneralTaxonmajo
Nr
ObligationIncremenDebt
t
BondsBondsService
REVENUES
Property taxes$741,464$ -$741,464
Investment earnings (net of market value adjustment -32,416 32,416
)
Total revenues773,880 -773,880
EXPENDITURES
Debt service:
Principal590,000 1,050,0001,640,000
Interest124,690 847,236971,926
Fiscal agent fees633 1,2651,898
Total expenditures715,323 1,898,5012,613,824
Revenues over (under) expenditures58,557 (1,898,501)(1,839,944)
OTHER FINANCING SOURCES (USES)
Transfers in- 4,433,3104,433,310
et increase (decrease) in fund balances58,557 2,534,8092,593,366
N
Fund balances - January 11,104,749 1,104,749-
Fund balances - December 31$1,163,306$ 2,534,809$3,698,115
97
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 24
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Property taxes$-$ -$2,140
Special assessments1,145,093 1,145,093882,121
Investment earnings (net of market value adjustment 53,45053,450 117,381
)
Total revenues1,198,543 1,198,5431,001,642
EXPENDITURES
Debt service:
Principal900,000 900,000900,000
Interest253,801 253,801162,486
Fiscal agent fees13,500 13,50010,998
Total expenditures1,167,301 1,167,3011,073,484
et increase (decrease) in fund balance$31,242$ 31,242(71,842)
N
Fund balance - January 13,098,227
Fund balance - December 31$3,026,385
98
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 25
DEBT SERVICE FUND - GENERAL OBLIGATION BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Property taxes$753,955$ 753,955$741,464
Investment earnings (net of market value adjustment 16,00016,000 32,416
)
Total revenues769,955 769,955773,880
EXPENDITURES
Debt service:
Principal590,000 590,000590,000
Interest124,690 124,690124,690
Fiscal agent fees1,500 1,500633
Total expenditures716,190 716,190715,323
et increase (decrease) in fund balance$53,765$ 53,76558,557
N
Fund balance - January 11,104,749
Fund balance - December 31$1,163,306
99
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 26
DEBT SERVICE FUND - TAX INCREMENT BONDS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
EXPENDITURES
Debt service:
Principal$1,050,000$ 1,050,000$1,050,000
Interest847,236 847,236847,236
Fiscal agent fees3,000 3,0001,265
Total expenditures1,900,236 1,900,2361,898,501
Revenues over (under) expenditures(1,900,236) (1,900,236)(1,898,501)
OTHER FINANCING SOURCES (USES)
Transfers in1,900,236 1,900,2364,433,310
et increase (decrease) in fund balance$-$ 2,534,809-
N
Fund balance - January 1-
Fund balance - December 31$2,534,809
100
NONMAJOR CAPITAL PROJECT FUNDS
The City of Brooklyn Center had the following Capital Project Funds during the year:
Capital Reserve Emergency Fund
- This fund was established in 1997 to account for
monies held in reserve for catastrophic losses or unforeseen capital items.
Capital Improvements Fund - This fund was established in 1968 to provide funds, and to
account for the expenditure of such funds, for major capital outlays including, but not
limited to, construction or acquisition of major permanent facilities having a relatively
long life; and/or to reduce debt incurred for capital outlays. The financing sources of the
fund include ad valorem taxation, transfers from other funds, issuance of bonds, federal
and state grants, and investment earnings.
Municipal State Aid Fund
- This fund was established to account for the state allotment
of gasoline tax collections used for transportation related construction and maintenance
projects.
Earle Brown Heritage Center Improvements Fund - This fund was established to provide
a stable source of funds to pay for periodic capital improvements needed at the facility.
Street Reconstruction Fund – This fund accounts for franchise fees collected, which have
been dedicated to the reconstruction of the City’s infrastructure.
Technology Fund - This fund, established in 2003, accounts for funds set aside for
technology improvements or major technology renovations/replacements.
101
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
ONMAJOR CAPITAL PROJECT FUNDS
N
December 31, 2007
Capital
ReserveCapital
EmergencImprovements
y
ASSETS
Cash and investment$1,403,002$635,570
s
Receivables:
Accounts -1,662
Due from other government --
s
Interfund receivable --
Advances to other funds -792,488
Total assets1,403,0021,429,720
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 23,1488,700
Contracts payable -1,269
Total liabilities 23,1489,969
Fund balances:
Reserved:
Advances to other funds -792,488
Committed contracts -183,920
Unreserved:
Designated for capital improvements1,379,854443,343
Total fund balances1,379,8541,419,751
Total liabilities and fund balances$1,403,002$1,429,720
102
Statement 27
MunicipalEarle BrownTotal
State AiHeritageonmajo
dNr
foCenteStreetCapital
rr
ConstructioImprovementsReconstructioTechnologyProjects
nn
$ 60,281$ 422,494$368,218$540,176$3,429,741
- -164,184 -165,846
678,041 -- -678,041
- -1,054,563 -1,054,563
- -- -792,488
738,322 422,4941,586,965540,1766,120,679
- 20,479- -52,327
- -- -1,269
- 20,479- -53,596
- -- -792,488
- -- -183,920
738,322 402,0151,586,965540,1765,090,675
738,322 402,0151,586,965540,1766,067,083
$ 738,322$ 422,494$1,586,965$540,176$6,120,679
103
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ONMAJOR CAPITAL PROJECT FUNDS
N
For the Year Ended December 31, 2007
Capital
ReserveCapital
EmergencImprovements
y
REVENUES
Franchise fees$ -$-
Intergovernmenta --
l
Investment earnings (net of market value adjustment 67,61427,476
)
Miscellaneous169,01928,678
Total revenues236,63356,154
EXPENDITURES
Current:
General government:
Services and other charges --
Public works:
Materials and supplies -2,400
Services and other charges183,40922,537
Total public works183,40924,937
Parks and recreation:
Services and other charges -10,560
Capital outla
y
Public works -24,390
Parks and recreation -50,949
Total capital outlay -75,339
Total expenditures183,409110,836
Revenues over (under) expenditures 53,224(54,682)
OTHER FINANCING SOURCES (USES)
Transfers in -125,000
Transfers out --
Total other financing sources (uses) -125,000
et increase (decrease) in fund balances 53,22470,318
N
Fund balances - January 11,326,6301,349,433
Fund balances - December 31$1,379,854$1,419,751
104
Statement 28
MunicipalEarle BrownTotal
State AiHeritageonmajo
dNr
foCenteStreetCapital
rr
ConstructioImprovementsReconstructioTechnologyProjects
nn
$ -$ -$658,620$ -$658,620
1,188,845 -- -1,188,845
25,302 16,186102,195 23,482262,255
- -- -197,697
1,214,147 16,186760,815 23,4822,307,417
- 40,508- 39,73780,245
24,681 -- -27,081
35,898 -- -241,844
60,579 -- -268,925
- -- -10,560
- -1,153,699 -1,178,089
- -- -50,949
- -1,153,699 -1,229,038
60,579 40,5081,153,699 39,7371,588,768
1,153,568 (24,322)(392,884)(16,255)718,649
- 230,000- 70,000425,000
(734,097) -- -(734,097)
(734,097) 230,000- 70,000(309,097)
419,471 205,678(392,884) 53,745409,552
318,851 196,3371,979,849486,4315,657,531
$ 738,322$ 402,015$1,586,965$540,176$6,067,083
105
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 29
CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Special assessments$380,000$ 380,000$482,292
Miscellaneous11,000 11,00035,286
Total revenues391,000 391,000517,578
EXPENDITURES
Current:
Public works:
Services and other charges- -74,536
Capital outlay:
Public works7,151,800 7,151,8001,975,078
Total expenditures7,151,800 7,151,8002,049,614
Revenues over (under) expenditures(6,760,800) (6,760,800)(1,532,036)
OTHER FINANCING SOURCES (USES)
Transfers in5,855,700 5,855,700760,907
et increase (decrease) in fund balance$(905,100)$ (905,100)(771,129)
N
Fund balance - January 1(519,299)
Fund balance - December 31$(1,290,428)
106
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 30
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$ --$ $27,476
)
Miscellaneous- -28,678
Total revenues- -56,154
EXPENDITURES
Current:
Public works:
Supplies- -2,400
Services and other charges- -22,537
Total public works- -24,937
Parks and recreation:
Services and other charges- -10,560
Capital outlay:
Public works215,000 215,00024,390
Parks and recreation- -50,949
Total capital outlay215,000 215,00075,339
Total expenditures215,000 215,000110,836
Revenues over (under) expenditures(215,000) (215,000)(54,682)
OTHER FINANCING SOURCES (USES)
Transfers in125,000 125,000125,000
et increase (decrease) in fund balance$(90,000)$ (90,000)70,318
N
Fund balance - January 11,349,433
Fund balance - December 31$1,419,751
107
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 31
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, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Intergovernmenta$769,342$ 769,342$1,188,845
l
Investment earnings (net of market value adjustment 10,00010,000 25,302
)
Total revenues779,342 779,3421,214,147
EXPENDITURES
Current:
Public works:
Supplies22,950 22,95024,681
Services and other charges35,900 35,90035,898
Total public works58,850 58,85060,579
Capital outlay:
Public works843,000 843,000-
Total expenditures901,850 901,85060,579
Revenues over (under) expenditures(122,508) (122,508)1,153,568
OTHER FINANCING SOURCES (USES)
Transfers out- -(734,097)
et increase (decrease) in fund balance$(122,508)$ (122,508)419,471
N
Fund balance - January 1318,851
Fund balance - December 31$738,322
108
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 32
CAPITAL PROJECT FUND - EARLE BROWN HERITAGE CENTER IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$6,000$ 6,000$16,186
)
EXPENDITURES
Current:
General government:
Services and other charges179,000 179,00040,508
Revenues over (under) expenditures(173,000) (173,000)(24,322)
OTHER FINANCING SOURCES (USES)
Transfers in200,000 200,000230,000
et increase (decrease) in fund balance$27,000$ 27,000205,678
N
Fund balance - January 1196,337
Fund balance - December 31$402,015
109
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 33
CAPITAL PROJECT FUND - STREET RECONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Franchise fees$665,000$ 665,000$658,620
Investment earnings (net of market value adjustment -- 102,195
)
Total revenues665,000 665,000760,815
EXPENDITURES
Capital outlay:
Public works1,190,500 1,190,5001,153,699
et increase (decrease) in fund balance$(525,500)$ (525,500)(392,884)
N
Fund balance - January 11,979,849
Fund balance - December 31$1,586,965
110
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 34
CAPITAL PROJECT FUND - TECHNOLOGY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Budgeted AmountsActual
OriginalFinalAmount
s
REVENUES
Investment earnings (net of market value adjustment$ --$ $23,482
)
EXPENDITURES
Current:
Public works:
Services and other charges149,640 149,64039,737
Revenues over (under) expenditures(149,640) (149,640)(16,255)
OTHER FINANCING SOURCES (USES)
Transfers in70,000 70,00070,000
et increase (decrease) in fund balance$(79,640)$ (79,640)53,745
N
Fund balance - January 1486,431
Fund balance - December 31$540,176
111
112
NONMAJOR ENTERPRISE FUNDS
The City of Brooklyn Center had the following nonmajor Enterprise Funds during the
year:
Recycling and Refuse Fund - This fund accounts for the operation of a state-mandated
recycling program.
Street Light Utility Fund
- This fund was created to account for expenses related to
streetlights within the City. Benefiting properties are billed for these expenses.
113
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 35
COMBINING STATEMENT OF NET ASSETS
ONMAJOR ENTERPRISE FUNDS
N
December 31, 2007
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
ASSETS
Current assets:
Cash and cash equivalents$768$ 154,091$154,859
Receivables:
Accounts - ne 55,06454,219 109,283
t
Total assets54,987 209,155264,142
LIABILITIES
Current liabilities:
Accounts payable449 29,50329,952
NET ASSETS
Unrestricted$54,538$ 179,652$234,190
114
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 36
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
ONMAJOR ENTERPRISE FUNDS
N
For the Year Ended December 31, 2007
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
OPERATING REVENUES
Sales and user fees$245,256$ 232,850$478,106
OPERATING EXPENSES
Supplies220 8221,042
Other services255,290 22,509277,799
Insurance1,790 1,2913,081
Utilities- 167,037167,037
Total operating expenses257,300 191,659448,959
Operating income (loss)(12,044) 41,19129,147
NONOPERATING REVENUES (EXPENSES)
Investment earnings (net of market value adjustment1,069 7,6698,738
)
Other revenue- 1,3801,380
Total nonoperating revenues (expenses)1,069 9,04910,118
Income (loss) before transfers(10,975) 50,24039,265
Transfers out- (26,810)(26,810)
Change in net assets(10,975) 23,43012,455
et assets - January 165,513 156,222221,735
N
et assets - December 31$54,538$ 179,652$234,190
N
115
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 37
COMBINING STATEMENT OF CASH FLOWS
ONMAJOR ENTERPRISE FUNDS
N
For the Year Ended December 31, 2007
Total
Recycling anStreet Lighonmajo
dtNr
RefuseUtilitEnterprise
y
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers$251,886$ 233,448$485,334
Payments to suppliers(257,615) (163,835)(421,450)
Miscellaneous revenue- 1,3801,380
et cash flows provided (used) by operating activities(5,729) 70,99365,264
N
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers out- (26,810)(26,810)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments1,069 7,6698,738
et increase (decrease) in cash and cash equivalents 51,852(4,660) 47,192
N
Cash and cash equivalents - January 15,428 102,239107,667
Cash and cash equivalents - December 31$768$ 154,091$154,859
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $(12,044)$ 41,191$29,147
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in receivables6,630 5987,228
Increase (decrease) in payables(315) 27,82427,509
Other nonoperating income- 1,3801,380
Total adjustments6,315 29,80236,117
et cash flows provided (used) by operating activities$(5,729)$ 70,993$65,264
N
116
INTERNAL SERVICE FUNDS
The City’s Internal Service Funds included in this section are:
Central Garage Fund
- This fund was established to account for the acquisition and
maintenance of all City vehicles and rolling stock equipment. Vehicle and equipment
maintenance and repair costs are charged to the departments as incurred. Replacement
costs are charged to the departments over the estimated useful life of the vehicles and
equipment.
Public Employees Retirement Fund
- This fund accounts for certain health care insurance
benefits for City employees who retire before age 65. Substantially all of the City’s full-
time police and fire employees and all other full-time employees hired before July 1,
1989 may be eligible for those benefits from the time they qualify for an unreduced
PERA pension until they reach age 65 or become eligible for Medicare. In the event that
future costs would exceed earnings, other funds would be charged for the costs associated
with their employees.
Public Employees Compensated Absences Fund - This fund accounts for payment of
unused vacation and sick leave time and the allocation of such costs to user departments.
117
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 38
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2007
Total
CentralEE RetiremenEE CompInternal
t
AbsencesService
GarageBenefi
t
ASSETS
Current assets:
Cash and cash equivalents$4,317,413$1,495,177$ 1,023,706$6,836,296
Receivables:
Accounts - ne 7347,727 - 8,461
t
Inventories33,043- -33,043
Total current assets4,358,1831,495,911 1,023,7066,877,800
oncurrent assets:
N
Capital assets:
Land improvement166,108- 166,108-
s
Machinery and equipmen -7,089,689 - 7,089,689
t
Total capital assets7,255,797- 7,255,797-
Less: Allowance for depreciatio(3,611,151)- (3,611,151)-
n
et capital assets3,644,646- 3,644,646-
N
Total assets8,002,8291,495,911 1,023,70610,522,446
LIABILITIES
Current liabilities:
Accounts payable73,105- -73,105
Accrued salaries payable5,909- -5,909
Compensated absences payable-curren -- 102,350 102,350
t
Accrued health insurance liability-curren 101,500- - 101,500
t
Total current liabilities79,014101,500 102,350282,864
oncurrent liabilities:
N
Compensated absences payable-long-ter -- 921,356 921,356
m
Accrued health insurance liability-long-ter 2,415,882- - 2,415,882
m
Total noncurrent liabilities- 2,415,882 921,3563,337,238
Total liabilities79,0142,517,382 1,023,7063,620,102
NET ASSETS
Invested in capital assets3,644,646- 3,644,646-
Unrestricted4,279,169(1,021,471) 3,257,698-
Total net assets$7,923,815$(1,021,471)$ 6,902,344-$
118
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 39
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Total
CentralEE RetiremenEE CompInternal
t
AbsencesService
GarageBenefi
t
OPERATING REVENUES
Sales and user fees$1,453,167$-$ 100,468$1,553,635
OEPRATING EXPENSES
Personal services301,48250,754 146,900499,136
Supplies392,966- 392,966-
Other services148,053- 148,053-
Insurance55,102- -55,102
Utilities1,870- -1,870
Depreciation529,893- 529,893-
Total operating expenses1,429,36650,754 146,9001,627,020
Operating income (loss)23,801(50,754) (46,432)(73,385)
NONOPERATING REVENUES (EXPENSES)
Intergovernmenta 9,842- - 9,842
l
Investment earnings (net of market value adjustment214,78571,197 46,432332,414
)
Gain (loss) on sale of capital assets88,508- -88,508
Other revenue10,384- -10,384
Total nonoperating revenues (expenses)313,67781,039 46,432441,148
Income (loss) before transfers337,47830,285 367,763-
Transfers in57,459- -57,459
Change in net assets394,93730,285 425,222-
et assets - January 1 7,528,878(1,051,756) 6,477,122-
N
et assets - December 31$7,923,815$(1,021,471)$ 6,902,344-$
N
119
CITY OF BROOKLYN CENTER, MINNESOTA
Statement 40
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Total
CentralEE RetiremenEE CompInternal
t
AbsencesService
GarageBenefi
t
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided$1,459,788$-$ 100,468$1,560,256
Payments to suppliers(620,433)- (620,433)-
Payments to employee(301,606)(87,019) (87,442)(476,067)
s
Miscellaneous revenue10,3849,842 -20,226
et cash flows provided (used) by operating activities548,133 (77,177) 13,026 483,982
N
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in57,459- -57,459
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets(1,619,325)- (1,619,325)-
Proceeds from sale of capital assets93,410- -93,410
et cash flows provided (used) by capital
N
and related financing activities(1,525,915)- (1,525,915)-
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments214,78571,197 46,432332,414
et increase (decrease) in cash and cash equivalents(705,538) (5,980) 59,458 (652,060)
N
Cash and cash equivalents - January 15,022,9511,501,157 964,2487,488,356
Cash and cash equivalents - December 31$4,317,413$1,495,177$ 1,023,706$6,836,296
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) $23,801$(50,754)$ (46,432)$(73,385)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Depreciation529,893- 529,893-
Changes in assets and liabilities:
(Increase) decrease in receivables6,621(311) -6,310
(Increase) decrease in inventories(3,073)- -(3,073)
Increase (decrease) in payables(19,369)- -(19,369)
Increase (decrease) in accrued expenses(124)(35,954) 59,45823,380
Other nonoperating income10,3849,842 -20,226
Total adjustments524,332(26,423) 59,458557,367
et cash provided (used) by operating activities$548,133$(77,177)$ 13,026$483,982
N
Noncash financing activities:
Gain on sale of assets$88,508$-$ -
120
STATISTICAL SECTION
This part of the City of Brooklyn Center’s comprehensive annual financial report
presents detailed information as a context for understanding the financial statements, note
disclosures, and supplementary information. This section includes information for the
primary government, including any blended component units.
Contents Page
Financial Trends 122
These tables contain trend information to help the reader understand
the City’s financial performance by placing it in historical perspective.
Revenue Capacity 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 144
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 146
These tables contain service and infrastructure data to help the reader
understand how the City’s financial report relates to the services the
City provides and the activities it performs.
Sources: unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
121
CITY OF BROOKLYN CENTER, MINNESOTA
Table 1
ET ASSETS BY COMPONENT
N
Last five fiscal year
s
(accrual basis of accounting)
(Unaudited)
20032004200520062007
Governmental activities
Invested in capital assets, net of
related debt$ 14,733,123$12,648,271$25,614,602$ 25,675,447$30,780,590
Restricted 14,853,26039,412,42329,326,928 27,637,46521,738,515
Unrestricted 17,817,9343,226,051652,963 4,055,3128,061,157
Total governmental activities net assets47,404,317$ $55,286,745$55,594,493$ 57,368,224$60,580,262
Business-type activitie
s
Invested in capital assets$ 37,898,615$36,129,095$38,417,467$ 40,647,644$40,466,892
Unrestricted 6,464,3327,137,2187,087,856 7,973,3189,845,252
Total business-type activities net assets44,362,947$ $43,266,313$45,505,323$ 48,620,962$50,312,144
Primary governmen
t
Invested in capital assets, net of
related debt$ 48,777,36652,631,738$ 64,032,069$ 65,188,021$ 70,318,894$
Restricted14,853,260 39,412,423 29,326,928 27,637,465 21,738,515
Unrestricted 24,282,26610,363,2697,740,819 13,163,70018,834,997
Total primary government net assets91,767,264$ $98,553,058$101,099,816$ 110,892,406105,989,186$
Note: Data for 1998-2002 is not available; the City did not prepare government-wide financial statements on an accrual basis for those years.
122
CITY OF BROOKLYN CENTER, MINNESOTA
Table 2
CHANGES IN NET ASSETS - GOVERNMENTAL ACTIVITIES
Page 1 of 3
Last five fiscal year
s
(accrual basis of accounting)
(Unaudited)
20032004200520062007
Expenses
$ 2,801,4222,649,846$ 2,970,364$ 2,936,638$ 2,953,328$
General governmen
t
Public safet 7,538,2777,182,321 7,848,160 8,039,356 8,051,836
y
Public works2,654,601 1,956,119 3,821,647 2,057,018 2,704,435
Community service 225,36567,32486,043 123,17274,389
s
Parks and recreation 2,169,4822,255,2312,305,047 2,565,3642,624,897
Economic developmen 1,683,0251,759,585 3,559,027 2,567,377 3,966,908
t
Interest on long-term deb 922,2531,268,6491,349,852 1,184,0171,127,276
t
Total expenses
17,563,45317,570,04721,940,140 19,472,94221,503,069
Program Revenues
Charges for services:
General governmen
227,350927,199960,125 947,613902,734
t
Public safet 951,518687,7311,026,736 800,408847,307
y
Parks and recreation 624,294618,199681,851 665,332692,781
Other activities 24,55423,5339,234 423,804290,533
Operating grants and contributions 1,627,020933,104855,633 748,888818,989
Capital grants and contributions 1,079,1342,423,4112,398,345 2,208,7512,646,320
oa program revenues
,,,,,, ,,,,
Totalprogramrevenues45338705613177593192457947966198664
Ttl45338705613177593192457947966198664
Net revenue/(expense)
(13,029,583) (16,008,216)(11,956,870) (13,678,146) (15,304,405)
General Revenues and Transfers
Taxes:
Property 10,407,61310,788,14511,288,883 11,618,48612,200,575
Tax increments 3,527,8814,285,1663,980,518 2,682,8742,677,630
Lodging taxes 661,267656,859710,619 738,776706,930
Unrestricted grants and contributions1,413,913 923,374577,548 702,0301,263,753
Investment earning 426,329491,5241,272,409 1,928,4621,852,117
s
Gain on disposal of capital asset 13,97629,20231,880 23,96388,508
Miscellaneous 588,264660,218---
Transfers 100,0002,004,810(1,545,893) 186,675(273,070)
Total general revenues and transfers
17,139,24319,839,29816,315,964 17,881,26618,516,443
Change in Net Assets
$ 4,109,660$7,882,428$307,748$ 4,203,120$3,212,038
123
CITY OF BROOKLYN CENTER, MINNESOTA
Table 2
CHANGES IN NET ASSETS - BUSINESS-TYPE ACTIVITIES
Page 2 of 3
Last five fiscal year
s
(accrual basis of accounting)
(Unaudited)
20032004200520062007
Expenses
Municipal liquor 724,897939,244978,743 970,2601,037,427
Golf course 290,990271,127273,024 282,418313,794
Earle Brown Heritage Center 2,109,1662,180,2292,262,359 2,439,7092,431,719
Water utilit 222,8211,645,955 1,717,175 1,635,847 1,716,497
y
165,6512,567,032 2,660,706 3,176,426 2,930,016
Sanitary sewe
r
Storm drainage838,421 1,533,923 899,988 1,097,277 1,123,636
Recycling and refus 223,6792,310,645254,661 245,853257,300
e
Street light utilit 147,293756,593213,094 161,219191,659
y
Total expenses
8,547,4338,380,2339,259,750 10,009,00910,002,048
Program Revenues
Charges for services:
Municipal liquor 853,353991,0581,099,172 1,244,7381,362,093
Earle Brown Heritage Center 1,749,2021,675,2671,857,461 2,168,8612,168,033
Water utilit 1,583,4501,530,592 1,825,521 1,906,375 2,063,930
y
Sanitary sewe 2,833,8362,870,109 2,966,222 3,186,569 3,274,678
r
Storm drainage 1,264,5121,276,7781,298,690 1,323,6071,412,548
Other activities 706,644707,460706,105 714,373732,224
Total program revenues
9,067,8498,974,412 9,753,171 10,544,523 11,013,506
Net revenue/(expense)
426,979687,616493,421 535,5141,011,458
General Revenues and Transfers
Investment earning
82,165102,696199,876 337,231406,654
s
Othe 241,308117,864---
r
Transfers (100,000)(2,004,810)1,545,893 (186,675)273,070
Total general revenues and transfers
223,473(1,784,250)1,745,769 150,556679,724
Change in Net Assets
$ 650,452$(1,096,634)$2,239,190$ 686,070$1,691,182
124
CITY OF BROOKLYN CENTER, MINNESOTA
Table 2
CHANGES IN NET ASSETS - TOTAL
Page 3 of 3
Last five fiscal year
s
(accrual basis of accounting)
(Unaudited)
20032004200520062007
Expenses
Governmental activities$ 17,563,453$17,570,047$21,940,140$ 19,472,942$21,503,069
Business-type activitie 8,380,2338,547,433 9,259,750 10,009,009 10,002,048
s
Total expenses
26,110,88625,950,28031,199,890 29,481,95131,505,117
Program Revenues
Governmental activities 4,533,8705,613,1775,931,924 5,794,7966,198,664
Business-type activitie
9,067,8498,974,412 9,753,171 10,544,523 11,013,506
s
Total program revenues
13,508,28214,681,02615,685,095 16,339,31917,212,170
Net revenue/(expense)
(12,602,604) (15,514,795)(11,269,254) (13,142,632) (14,292,947)
General Revenues and Transfers
Governmental activities 17,139,24319,839,29816,315,964 17,881,26618,516,443
Business-type activitie
223,473(1,784,250)1,745,769 150,556679,724
s
Total general revenues and transfers
17,362,71618,055,04818,061,733 18,031,82219,196,167
,,,,,, ,,,,
ChangeinNetAssets$4760112$6785794$2546938$4889190$4903220
ChangeinNetAssets$4760112$6785794$2546938$4889190$4903220
Note: Data for 1998-2002 is not available; the City did not prepare government-wide financial statements on an accrual basis for those years.
125
126
CITY OF BROOKLYN CENTER, MINNESOTA
Table 3
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
Last five fiscal year
s
(accrual basis of accounting)
(Unaudited)
PropertyTaxLodging
TaxIncrementsTaxTotal
2003$ 10,407,613$3,527,881$661,267$14,596,761
2004 10,788,1454,285,166656,85915,730,170
2005 11,288,8833,980,518710,61915,980,020
2006 11,618,4862,682,874738,77615,040,136
2007 12,200,5752,677,630706,93015,585,135
Note: Data for 1998-2002 is not available; the City did not prepare government-wide financial statements on an accrual basis for those years.
127
CITY OF BROOKLYN CENTER, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
1998199920002001
General Fun
d
Reserve$105,074$105,074$ 105,074$105,074
d
Unreserved7,232,9267,203,633 7,346,9697,328,798
Total general fund$7,338,000$7,308,707$ 7,452,043$7,433,872
All other governmental fund
s
Reserve$15,282,262$8,313,672$ 7,307,297$7,015,583
d
Unreserved, reported in:
Special revenue funds470,9441,723,559 1,816,8063,864,347
Capital project funds7,227,4688,884,582 7,308,2935,337,423
Total all other governmental funds$22,980,674$18,921,813$ 16,432,396$16,217,353
128
Table 4
200220032004200520062007
$ 173,353$ 110,383$106,578$11,080$ 500$700
7,756,421 7,906,6976,862,8717,283,871 7,508,6907,941,714
$ 7,929,774$ 8,017,080$6,969,449$7,294,951$ 7,509,190$7,942,414
$ 7,234,260$ 7,509,315$13,230,540$5,150,818$ 5,176,808$11,288,685
4,453,879 6,211,01925,750,17924,853,267 22,862,21111,738,460
1,870,176 2,133,0794,969,5063,232,820 4,164,4003,466,029
$ 13,558,315$ 15,853,413$43,950,225$33,236,905$ 32,203,419$26,493,174
129
CITY OF BROOKLYN CENTER, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
(Unaudited)
1998199920002001
Revenues
Property taxes$7,562,822$7,740,375$ 8,265,296$7,932,469
Tax increments1,962,2892,902,590 3,196,1083,967,398
Franchise fees-- --
Lodging taxes660,613808,266 836,857826,957
Special assessments1,016,733909,894 1,287,9341,136,454
Licenses and permits549,067763,960 632,549788,629
Intergovernmenta4,936,3438,602,166 7,899,5225,824,513
l
Charges for services771,614739,054 779,060688,453
Fines and forfeits193,688205,460 180,676230,408
Investment earning1,732,579609,879 798,2292,082,680
s
Miscellaneous439,013168,050 125,012150,369
Total revenues19,824,76123,449,694 24,001,24323,628,330
Expenditures
General governmen
2,134,0012,260,415 2,429,1962,504,392
t
Public safet5,185,9655,354,413 5,453,1435,672,098
y
Public works1,955,1081,904,205 2,100,8652,142,064
Community service 83,29573,066 95,148106,034
s
ars an recreaon,,,, ,,,,
Parksandrecreation2148201223346523447682392168
Pkdti2148201223346523447682392168
Economic developmen 2,664,904893,522 2,763,0282,365,732
t
ondepartmental312,625343,925 419,789372,056
N
Administrative services reimbursemen(731,737)(670,390) (795,737)(767,504)
t
Capital outla6,453,90613,838,702 7,275,6756,558,177
y
Debt service
Principal1,285,0002,085,000 3,970,0002,805,000
Interest1,244,9231,373,614 1,282,5121,330,162
Other charges40,53713,930 13,4268,931
Total expenditures20,995,11731,485,478 27,351,81325,489,310
Revenues over (under) expenditures(1,170,356)(8,035,784) (3,350,570)(1,860,980)
Other financing sources (uses)
Issuance of debt2,670,0001,585,000 735,000730,000
-- --
Discount on issuance of deb
t
Sale of capital assets-2,411,987 194,491572,266
Transfers in3,646,1983,655,433 5,479,1204,124,184
Transfers out(4,071,198)(3,704,790) (5,404,122)(3,798,684)
Refunded bonds redeemed-- --
Total other financing sources (uses)2,245,0003,947,630 1,004,4891,627,766
et change in fund balances$1,074,644$(4,088,154)$ (2,346,081)$(233,214)
N
Debt service as a percentage of
noncapital expenditures14.89%14.82%23.05%18.41%
130
Table 5
200220032004200520062007
$ 10,739,847$ 10,268,278$10,598,478$11,641,177$ 11,525,040$12,094,359
3,022,252 3,466,1143,834,0604,680,688 2,664,1442,727,637
- -612,079662,614 658,410658,620
717,176 661,267656,858710,619 738,776706,930
1,190,031 1,232,6821,313,7821,226,655 1,214,5711,364,413
823,996 827,685678,077675,530 722,633673,156
7,039,895 3,479,0823,239,0202,578,031 2,375,6973,171,745
575,748 709,623711,526754,575 722,218705,736
278,557 290,408254,980253,748 256,600291,423
648,423 317,749385,0221,078,434 1,601,7311,519,503
267,717 607,582609,902427,839 477,296404,420
25,303,642 21,860,47022,893,78424,689,910 22,957,11624,317,942
2,553,426 2,475,3232,594,0412,586,993 2,839,1502,951,188
6,255,221 6,620,4817,025,6297,014,528 7,299,8427,550,434
1,814,1072,197,127 1,817,1202,310,846
1,986,6922,114,378
103,491 91,58167,32486,043 123,17274,389
,, ,,,,,, ,,,,
212541520304021981998212113022121422314099
212541520304021981998212113022121422314099
2,095,545 1,758,2571,006,5502,076,023 1,386,5585,659,331
366,282 331,223333,669315,355 363,967354,848
(596,541) (607,221)(784,084)(754,085) (529,362)(744,590)
9,608,420 1,881,3604,724,2898,335,916 5,918,4724,524,524
3,000,000 3,220,0003,751,5132,772,189 3,127,1462,786,076
1,034,139 905,518881,0161,214,751 1,197,3921,134,412
28,712 26,079126,85823,758 53,22612,896
28,560,802 20,847,38123,522,91027,989,728 25,808,82528,928,453
(3,257,160) 1,013,089(629,126)(3,299,818) (2,851,709)(4,610,511)
- 1,205,00025,770,000- 1,460,000-
- (8,860)(96,503)- (445)-
474,648 73,175-- --
4,263,453 3,703,5095,103,6132,811,793 2,784,1165,881,257
(4,063,453) (3,603,509)(3,098,803)(2,619,793) (2,211,209)(6,018,629)
(7,280,000) -(529,138)
- --
674,648 1,369,31527,678,307(7,088,000) 2,032,462(666,510)
$ (2,582,512)$ 2,382,404$27,049,181$(10,387,818)$ (819,247)$(5,277,021)
16.81%21.88%24.89%18.37%19.14%15.90%
131
CITY OF BROOKLYN CENTER, MINNESOTA
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
(Unaudited)
1998199920002001
Real Property:
Residential$9,182,859$ 9,976,8629,309,893$ $8,928,738
onresidential11,082,43610,657,588 14,093,09411,002,424
N
Area-wide allocatio226,287537,406 1,504,330746,438
n
Personal property502,668452,849 437,707452,680
Less:
Tax increment districts1,665,0542,054,659 2,533,8783,296,624
Total Assessed Tax Capacity19,329,19618,903,077 20,387,44520,924,326
Direct Tax Rate 35.21436.269 34.64535.996
1
Estimated Market Value1,022,736,7001,098,665,9001,177,854,4001,324,649,100
Total Assessed Tax Capacity as a percentage
of Estimated Market Value1.89%1.72%1.73%1.58%
Beginning in 2002, the State of Minnesota significantly reduced state aids to the City and allowed these amounts to be included
1
in the proptery tax levy.
Source: City Assessing Department
132
Table 6
200220032004200520062007
$ 8,495,196$ 9,362,788$10,532,558$12,177,307$ 13,942,981$15,436,568
9,225,991 9,430,5339,775,3529,903,157 9,475,5769,573,405
635,875 875,1451,097,5961,023,618 1,161,1741,624,108
262,882 273,072281,963294,377 298,953283,198
2,450,218 2,538,8253,134,4173,122,665 2,559,6202,463,631
16,169,726 17,402,71318,553,05220,275,794 22,319,06424,453,648
58.901 52.79253.69351.723 48.06945.366
1,488,832,300 1,673,812,000 1,840,115,3001,959,999,1002,035,666,1002,125,686,700
1.09%1.04%1.01%1.03%1.10%1.15%
133
CITY OF BROOKLYN CENTER, MINNESOTA
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
(Unaudited)
Overlapping Rates
Metro
CountDist 11Dist 279Dist 281Dist 286Districts
Cit
yy
1998 35.214 38.38651.824 51.567
56.386 65.350 5.646
1999 36.998 40.99454.856 59.807
54.337 47.716 6.035
2000 35.369 39.65551.792 44.356
53.284 48.492 6.039
2001 36.740 37.67952.224 47.139
56.784 46.678 5.830
2002 58.901 50.78929.082 26.338
30.092 30.213 3.537
2003 54.021 50.60726.941 49.817
35.042 29.179 3.825
2004 53.693 47.32421.050 39.892
23.709 34.258 3.502
2005 51.723 44.17221.492 36.159
24.336 29.989 3.304
2006 48.069 41.01620.046 39.781
21.815 28.489 2.924
2007 45.366 39.11019.353 36.154
23.758 28.750 2.671
Source: City Assessing Department and Hennepin County Property Tax Services
1
Watershed levy was levied in 2006 in schools districts 279 and 281, and parts of school districts 11 and 286.
134
Table 7
Total Direct and Overlapping Rates
OtheDistrict 11District 11DistricDistricDistrict 286District 286
rtt
no watershewith watershe279281no watershewith watershe
DistrictsWatershed
1 dddd
2.497 - 133.567 - 138.129 147.093 133.310 -
3.247 - 142.130 - 141.611 134.990 147.081 -
3.111 - 135.966 - 137.458 132.666 128.530 -
2.294 - 134.767 - 139.327 129.221 129.682 -
3.844 - 146.153 - 147.163 147.284 143.409 -
5.161 - 140.555 - 148.656 142.793 163.431 -
3.986 - 129.555 - 132.214 142.763 148.397 -
4.078 - 124.769 - 127.613 133.266 139.436 -
4.074 0.073 116.129 116.202 117.971 124.645 135.864 135.937
4.639 - 111.139 - 115.544 120.536 127.940 -
135
CITY OF BROOKLYN CENTER, MINNESOTA
Table 8
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
(Unaudited)
20071998
Percentage ofPercentage of
et TaxTotal Taxet TaxTotal Tax
NN
TaxpayerCapacitRanCapacity ValueCapacitRanCapacity Value
ykyk
Brooks Mall Properties LLC$ 761,93013.12%$867,78324.49%
Regal Cinemas, Inc. 238,55020.98% --
Brookdale Corner, LLC 208,05030.85% --
BCC Associates, LLC 199,25040.81% --
Medtronic, Inc. 197,97050.81% --
Twin Lake Nort
176,13860.72% --
h
CSM Freeway Airport, LL
166,55070.68%
C
Wickes Furniture Compan
164,85080.67% --
y
argeores ,.
TargetStores1548509063%
TtSt1548509063%
Melrose Gates, LLC 132,838100.54%
Dayton-Hudson Corp.--1,006,10215.21%
Ryan Construction Co.--581,30433.01%
Prudential Insurance Co.--503,18442.60%
Lang-Nelso
--364,38551.89%
n
Bradley Real Estate Inc.--342,05061.77%
Sears Roebuck and Co.--318,05071.65%
First Indrustrial Realty Trus--274,97481.42%
t
JC Penney's--260,20091.35%
AMB Property, LP--181,930100.94%
Totals$ 2,400,9769.82%$4,699,96224.32%
Source: City Assessing Department
136
137
138
CITY OF BROOKLYN CENTER, MINNESOTA
Table 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last ten fiscal years
(Unaudited)
Percentage of
Less: Amount
s
GeneralAvailable iet GeneralEstimate
nNd
ObligationDebt ServiceObligationMarket ValuePer
BondsFunDebtof PropertyCapita
d
1998$ 7,900,000$ 616,778$7,283,2220.71%$255
1999 7,575,000 725,8686,849,1320.62%240
2000 7,175,000 775,9116,399,0890.54%219
2001 6,760,000 831,5885,928,4120.45%203
2002 6,325,000 871,9705,453,0300.37%187
2003 5,875,000 907,7094,967,2910.30%170
2004 10,450,000 5,903,5774,546,4230.25%157
2005 5,045,000 1,054,2303,990,7700.20%142
2006 4,465,000 1,104,7493,360,2510.17%120
2007 3,875,000 1,163,3062,711,6940.13%97
139
CITY OF BROOKLYN CENTER, MINNESOTA
Table 12
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
as of December 31, 2007
(Unaudited)
EstimatedEstimated Share
DebtPercentageof Overlapping
1
Governmental UnitOutstandingApplicable
Debt
Overlapping debt:
School Districts:
No. 11 Anoka$ 145,170,8671.23%$ 1,785,602
No. 279 Osseo 219,717,5334.77% 10,480,526
No. 281 Robbinsdale 228,408,5925.09% 11,625,997
No. 286 Earle Brown 29,602,743100.00% 29,602,743
Metropolitan Council 118,428,5060.66% 781,628
Hennepin County 468,235,5041.45% 6,789,415
Hennepin Regional RR Authority 44,577,4691.45% 646,373
Hennepin County Park Reserve District 73,402,1051.92% 1,409,320
Total overlapping debt$ 962,654,919 63,121,605
2
City of Brooklyn Center direct debt 2,711,694
Total direct and overlapping debt$65,833,299
Source: City Finance Department, Hennepin County, and Springsted Financial Advisors.
1
The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated by determining
the portion of each entity's tax capacity that is within the City's boundaries and dividing it by that entity's total tax capacity.
2
Includes only general obligation debt which is repaid through property taxes, net of amounts available.
140
CITY OF BROOKLYN CENTER, MINNESOTA
Table 13
LEGAL DEBT INFORMATION
Last ten fiscal years
(Unaudited)
Total net debt
applicable to the limit
Total net debtas a percentage of
Debt Limiapplicable to limitLegal debt margidebt limi
tnt
1998$ 20,439,994$7,283,222$13,156,77235.63%
1999 21,911,8366,849,13215,062,70431.26%
2000 23,370,2746,399,08916,971,18527.38%
2001 25,381,4005,928,41219,452,98823.36%
2002 27,354,8685,453,03021,901,83819.93%
2003 29,594,6884,967,29124,627,39716.78%
2004 32,503,0964,546,42327,956,67313.99%
2005 36,003,5363,990,77032,012,76611.08%
2006 39,219,0543,360,25135,858,8038.57%
2007 42,259,9582,711,69439,548,2646.42%
Legal Debt Margin Calculation for Fiscal Year 2007
Taxable Market Value$2,112,997,900
Debt limit (2% of Taxable Market Value)42,259,958
Debt applicable to limit
et general obligation bonds2,711,694
N
$39,548,264
Legal debt margi
n
141
CITY OF BROOKLYN CENTER, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
(Unaudited)
Storm Sewer Bonds
StorLess:et
mN
OperatingAvailableDebt Service
Sewe
r
ChargesExpensesRevenuePrincipalInterestCoverage
1998$ 940,012$ 261,202$678,810$165,000$ 75,3902.82
1999 999,867 232,405767,462170,000 67,5583.23
2000 1,074,619 307,389767,230180,000 59,1103.21
2001 1,129,502 327,412802,090190,000 49,9503.34
2002 1,377,638 662,747714,891200,000 40,1002.98
2003 1,264,512 809,130455,382210,000 29,5401.90
2004 1,276,778 756,593520,185220,000 18,2502.18
2005 1,293,841 1,086,600207,241230,000 6,2100.88
---- -
2006
2006
-
2007 ---- -
-
142
Table 14
Special Assessment BondsTax Increment Bonds
SpecialTax
Debt ServiceIncremenDebt Service
Assessmen
tt
CollectionsPrincipalInterestCoverageCollectionsPrincipalInterestCoverage
$ 840,000$
$ 537,698$ 265,000$ 160,918 1.261,962,289$ 715,040 1.26
690,538 405,000 189,790 1.16 2,902,590 1,165,000 662,232 1.59
994,839 535,000 231,972 1.30 3,186,573 1,280,000 595,554 1.70
1,029,378 700,000 252,563 1.08 3,713,349 1,450,000 519,409 1.89
928,559 780,000 249,497 0.90 2,882,577 1,540,000 433,893 1.46
1,153,044 870,000 242,749 1.04 3,142,158 1,645,000 340,413 1.58
1,410,344 1,005,000 218,457 1.15 3,606,130 1,775,000 286,867 1.75
1,058,557 990,000 197,760 0.89 3,576,209 770,000 729,740 2.38
,, ,, ,.,,,, ,.
1035961100000016728408916099941000000887080085
1035961100000016728408916099941000000887080085
884,261 900,000 162,486 0.83 1,707,470 1,050,000 847,236 0.90
143
CITY OF BROOKLYN CENTER, MINNESOTA
Table 15
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
(Unaudited)
School Enrollments
Per Capitao. 286
N
o. 11o. 279o. 281Earle
PersonalPersonalUnemploymen
tNNN
PopulationIncomeIncomeRateAnokOsseoRobbinsdaleBrow
an
$ 38,2331,090,978,655$
1998 28,5352.1% 40,923 22,028 1 3,966 1,788
1,143,625,730
1999 28,535 40,0782.4% 40,964 22,171 1 3,800 1,734
1,256,583,900
2000 29,172 43,0753.0% 41,314 22,017 1 3,706 1,682
1,270,876,540
2001 29,180 43,5534.2% 41,419 22,041 1 3,754 1,724
1,280,666,985
2002 29,185 43,8815.2% 41,383 21,824 1 3,656 1,732
1,322,544,942
2003 29,174 45,3335.9% 41,254 21,698 1 3,765 1,732
1,392,849,105
2004 29,005 48,0215.6% 41,592 21,620 1 6,196 1,691
1,394,638,542
2005 28,137 49,5664.8% 41,596 21,792 1 3,368 1,679
****
2006 27,9014.6% 41,310 22,071 1 3,194 1,705
****
2007 27,9015.6% 40,656 21,859 1 2,891 1,763
Sources:Population - Metropolitan Council
Personal income - Bureau of Economic Analysis
Unemployment rate - Minnesota Department of Employment and Economic Development
School Enrollments - Minnesota Department of Education
** - personal income data not available for these years
144
CITY OF BROOKLYN CENTER, MINNESOTA
Table 16
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
(Unaudited)
20071998
Percentage ofPercentage of
Total CityTotal City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Brookdale Center 113.27%1,900 110.46%1,700
Promeon, Division of Medtronics 29.43%1,350 31.85%300
Graco, Inc. 35.59%800 70.62%100
Independent School District #286 42.12%303
Nations Care Link 51.57%225
Cub Foods 61.19%170
City of Brooklyn Center 71.07%153 21.89%307
Best Buy 81.01%145
Target 90.98%140
TCR Corporation 100.98%140 51.08%175
Hoffman Engineering 41.63%265
Ault, Inc. 60.98%160
Cass Screw Machine Products 80.62%100
Precision, Inc. 90.62%100
Haiwatha Rubber Company 100.52%85
Totals 5,32637.21%3,29220.26%
Source: Minnesota Department of Employment and Economic Development
145
CITY OF BROOKLYN CENTER, MINNESOTA
Table 17
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION
Last ten fiscal years
(Unaudited)
1998199920002001200220032004200520062007
General governmen
t
Administrativ
e
5.4 6.4 6.4 6.5 6.5 6.5 6.0 6.0 6.0 6.0
Elections
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Finance
7.0 7.0 7.0 7.0 7.0 6.0 6.0 6.0 6.0 6.0
Assesso
r
4.0 4.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 3.0
Government buildings
4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
Information technolog
y
1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0 2.0 2.0
Total general governmen 24.422.4 24.424.523.523.523.023.0 23.023.0
t
Public safet
y
Police
Officers 42.042.0 42.042.042.042.042.042.0 42.043.0
Civilians17.0 17.0 17.016.016.015.015.015.0 15.012.0
Fire
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0
Building inspectio
n
4.0 4.0 5.0 5.0 4.0 4.0 4.0 4.0 4.0 4.0
Total public safety 64.064.0 65.064.063.062.062.062.0 63.061.0
Public works
Engineerin 10.010.010.08.0
g
9.010.0 7.0 7.0 6.0 6.0
Streets 10.910.9 10.910.911.011.010.09.0 10.010.0
Total public works 20.919.9 20.920.921.019.017.016.0 16.016.0
Parks and recreation
Administratio
n
5.0 6.0 6.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0
Community cente
r
5.0 5.0 5.5 5.5 5.0 5.0 3.0 3.0 3.0 3.0
Park maintenance 10.010.0 10.010.010.010.08.0
8.0 7.0 7.0
Total park and recreation20.0 21.0 21.521.521.020.017.017.0 16.016.0
Economic developmen
t
4.6 4.6 4.6 4.5 4.5 4.5 4.0 4.0 4.0 4.0
Municipal liquor
3.0 3.0 4.0 4.0 3.0 3.0 3.0 3.0 3.0 4.0
Golf course
1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Earle Brown Heritage Center13.0 13.0 13.013.011.011.011.011.0 11.011.0
Water
4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.3 5.3
Sanitary sewe
r
3.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.3 2.3
Storm sewe
r
- - - - - - - 1.0 1.4 1.4
Central garage
5.1 5.1 5.1 5.1 5.0 5.0 5.0 5.0 5.0 5.0
Total
160.0164.0166.5165.5160.0156.0150.0150.0151.0150.0
Source: City Annual Budget documents
146
147
148