HomeMy WebLinkAboutCAFR-2015
Comprehensive Annual Financial Report
For the year ended December 31, 2015
City of Brooklyn Center, Minnesota
Member of the Government Finance Officers Association of the United States
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF BROOKLYN CENTER,
MINNESOTA
Cornelius L. Boganey
City Manager
Prepared By:
FINANCE DIVISION
DEPARTMENT OF FISCAL & SUPPORT SERVICES
Nathan Reinhardt
Finance Director
Andrew Splinter
Assistant Finance Director
FOR THE YEAR ENDED
DECEMBER 31, 2015
Member of Government Finance Officers
Association of the United States and Canada
CITY OF BROOKLYN CENTER, MINNESOT
A
TABLE OF CONTENTS
Page No.
INTRODUCTORY SECTIO
N
Letter of Transmittal1
Principal Officials9
Organizational Chart10
Certificate of Achievemen11
t
FINANCIAL SECTIO
N
Independent Auditor's Repor13
t
Management's Discussion and Analysis17
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Positio29
n
Statement of Activities30
Fund Financial Statements
Governmental Fund
s
Balance Shee32
t
Reconciliation of the Balance Sheet of the Governmental Fund
s
to the Statement of Net Positio35
n
Statement of Revenues, Expenditures and Changes in Fund Balance36
s
Reconciliation of the Statement of Revenues, Expenditures and Changes i
n
Fund Balances of the Governmental Funds to the Statement of Activitie38
s
Statement of Revenues, Expenditures and Changes in Fund Balance: Budget and Actua
l
General Fun39
d
Tax Increment District No. 3 Special Revenue Fun40
d
Tax Increment District No. 5 Special Revenue Fun41
d
Proprietary Funds
Statement of Net Positio42
n
Statement of Revenues, Expenses and Changes in Net Positio44
n
Statement of Cash Flows46
Notes to the Financial Statements49
Required Supplementary Informatio
n
Schedule of Funding Progress - Other Postemployment Benefit91
s
Schedule of City Contributions - Public Employees General Employees
Retirement Fun92
d
Schedule of City's Proportionate Share of Net Pension Liability - Public
Employees General Employees Retirement Fun93
d
Schedule of City Contributions - Public Employees Police and Fire Fun94
d
Schedule of City's Proportionate Share of Net Pension Liability - Public Employees
Police and Fire Fund95
Schedule of Changes in Net Pension Asset and Related Ratio - Fire Relief Associatio96
n
Schedule of City Contributions - Fire Relief Associatio97
n
Schedule of City Contributions - International Union of Operating Engineer
s
Central Pension Fund98
Combining and Individual Fund Statements and Schedules
Governmental Fund
s
Nonmajor Governmental Fund
s
Combining Balance Shee102
t
Combining Statement of Revenues, Expenditures and Changes in Fund Balance103
s
Nonmajor Special Revenue Fund
s
Combining Balance Shee104
t
Combining Statement of Revenues, Expenditures and Changes in Fund Balance106
s
Nonmajor Capital Projects Funds
Combining Balance Shee108
t
Combining Statement of Revenues, Expenditures and Changes in Fund Balance109
s
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actua
l
General Fun110
d
Special Revenue Fund
s
Housing and Redevelopment Authorit115
y
CITY OF BROOKLYN CENTER, MINNESOT
A
TABLE OF CONTENTS
Economic Development Authorit116
y
Community Development Block Gran117
t
Police Forfeitures118
Tax Increment District No. 2119
Tax Increment District No. 3120
Tax Increment District No. 4121
Tax Increment District No. 5122
City Initiatives Grant123
Centennial Amphitheate124
r
Debt Service Fun125
d
Capital Projects Funds
Capital Improvements126
Municipal State-Aid for Construction127
Capital Reserve Emergenc128
y
Infrastructure Construction129
Street Reconstructio130
n
Technolog131
y
Debt Service Fund by Accoun
t
Combining Balance Shee132
t
Combining Schedule of Revenues, Expenditures and Changes in Fund Balance134
s
Schedule of Revenues, Expenditures and Changes in Fund Balance: Budget and Actua
l
G.O. Improvement Bonds, 2004136
C
G.O. Improvement Bonds, 2006137
A
G.O. Improvement Bonds, 2008B138
G.O. Improvement Bonds, 2013B139
G.O. Improvement Bonds, 2015140
A
G.O. Tax Increment Bonds, 2015B141
G.O. Tax Increment Bonds, 2013A142
G.O. Tax Increment Bonds, 2008A143
G.O. Tax Increment Bonds, 2004D144
Proprietary Funds
Internal Service Funds
Combining Statement of Net Positio146
n
Combining Statement of Revenues, Expenses and Changes in Net Positio147
n
Combining Statement of Cash Flow148
s
STATISTICAL SECTION (UNAUDITED
)
Financial Trends
Net Position by Componen150
t
Changes in Net Positio152
n
Governmental Activities Tax Revenue by Sourc158
e
Fund Balances of Governmental Fund160
s
Changes in Fund Balances of Governmental Fund162
s
Revenue Capacit
y
Assessed Tax Capacity and Estimated Actual Value of Taxable Property164
Property Tax Rates - Direct and Overlapping Government166
s
Principal Property Taxpayers168
Property Tax Levies and Collections169
Debt Capacity
Ratios of Outstanding Debt by Typ170
e
Ratios of General Bonded Debt Outstandin171
g
Computation of Direct and Overlapping Deb172
t
Legal Debt Margin Informatio174
n
Pledged Revenue Coverag176
e
Demographic and Economic Informatio
n
Demographic and Economic Statistics177
Principal Employers178
Operating Informatio
n
Full-Time City Government Positions by Functio179
n
Operating Indicators by Function180
Capital Asset Statistics by Function181
LƓƷƩƚķǒĭƷƚƩǤ
{ĻĭƷźƚƓ
May 23, 2016
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, 2015.
Management of the City of Brooklyn Center assumes full responsibility for the completeness and
reliability of the information contained in this report based on the current system of internal control.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
Minnesota Statutes and City Charter Section 7.12 require that the financial statements of the City of
Brooklyn Center be audited annually by the State Auditor or a certified public accountant selected by
the City Council. These financial statements have been audited by Malloy, Montague, Karnowski,
Radosevich, & Co., P.A. (MMKR). Their opinion is included in the financial section of this report. In
addition, MMKR is required to issue an opinion on the City’s management and accounting for grant
funds from the federal government, often called the “Single Audit” report. That Single Audit report is
required for 2015 because the City received more than $750,000 in total federal grants. It has been
issued under separate cover.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements.
Management’s Discussion and Analysis complements this letter of transmittal and should be read in
conjunction with it.
Profile of the City of Brooklyn Center
The City of Brooklyn Center was incorporated in 1911. It is a northern suburb of the Twin Cities
metropolitan area, adjacent to the City of Minneapolis and located 10 miles from its downtown area.
The City is wholly within Hennepin County and covers an area of about 8.5 square miles. The
Mississippi River forms the City’s eastern boundary.
The City has operated under the council-manager form of government since the adoption of the City
Charter in 1966. The governing body is comprised of the Mayor and four Council Members elected
at large. All members serve four-year terms with two of the Council Members standing for election
during each national election year cycle. The Mayor and Council Members hire a City Manager
who is responsible for the daily operations of the City.
1
The City provides a full range of municipal services to its citizens. These include police and fire
protection and services, zoning and code enforcement, municipal planning, parks, recreation
activities, construction and maintenance of streets, provision of water, wastewater collection and
treatment, stormwater collection and treatment, and street lighting. Community and economic
development are facilitated through a Housing and Redevelopment Authority and an Economic
Development Authority. The Boards of those two organizations are comprised of the Mayor and
members of the City Council. The City also has internal departments providing human resources,
engineering, financial management and information technology support to these various functions.
The City operates a conference and meeting facility at the Earle Brown Heritage Center, two
municipal liquor stores, and Centerbrook, an executive nine-hole golf course.
Financial planning and control for the City of Brooklyn Center is based on the Annual Operating
Budget and the multi-year Capital Improvement Program. Under Minnesota Statutes, a preliminary
property tax levy must be adopted no later than September 30 of each year for the ensuing year’s
collection. This establishes a maximum levy that may subsequently be lowered but not raised.
Effective establishment of this levy requires that a preliminary budget be prepared. The City
Manager, with the assistance of staff, prepares such a budget each year and presents it to the City
Council in August, prior to the consideration of the preliminary tax levy. In addition, the City
Council reviews the recommended rates and charges for utility funds and other operations on an
annual basis as part of the budget process. Citizens receive a notice of taxes proposed for their
individual properties in November based on the preliminary levies established by all taxing districts.
Following the receipt of this notice citizens are invited to public meetings in each taxing
jurisdiction. The City’s meeting includes information about the budget, the property tax levy and
the priorities of the City Council for the coming year as reflected by the budget allocations
proposed. Public comment is received and considered at this meeting. The final property tax levy
and the resulting operational budgets for the ensuing fiscal year are adopted at a subsequent
meeting.
In addition, a Capital Improvement Program is reviewed and revised during the budget process each
year. This includes projects for which the City may issue debt and/or assess portions of the cost to
adjacent or benefited property owners. Because there are limited funds available each year and the
City does not wish to issue excessive amounts of debt, these projects are reviewed and reprioritized
each year.
For the past several years the City Council has remained focused on the achievement of strategic
priorities. City financial planning, policies, spending and initiatives reflect these priorities. The
City Council has adopted the six strategic priorities of Resident Economic Stability, Targeted
Redevelopment, Enhanced Community Image, Inclusive Community Engagement, Strengthened
and Empowered Youth, and Key Infrastructure Investments.
Resident Economic Stability
The economic stability of residents is essential to vibrant neighborhoods and to retail, restaurant,
and business growth. We will lead by supporting collaborative efforts of education, business, and
government sectors to improve income opportunities for residents.
2
Targeted Redevelopment
Redeveloping properties to the highest value and best use will accomplish our goals regarding
housing, job creation, and growth of the City’s tax base. We will appropriately prepare sites and
provide the necessary supporting infrastructure investments to guide redevelopment of publicly-
and privately-owned properties.
Enhanced Community Image
Our ability to attract and retain residents and businesses is influenced by the perception of the City.
We will take specific actions to assure that Brooklyn Center is recognized by residents, businesses,
stakeholders, and visitors as a high quality, attractive, and safe community.
Inclusive Community Engagement
In order to provide effective and appropriate services, we must clearly understand and respond to
community needs. We will consistently seek input from a broad range of stakeholders from the
general public, non-profit, and for-profit sectors. Efforts to engage the community will be
transparent, responsive, deliberately inclusive, and culturally sensitive.
Strengthened and Empowered Youth
Youth are a valued resource with the ability to enhance the community with their enthusiasm,
energy, and capacity to contribute. We are committed to a coordinated system of high-quality,
accessible, and full resourced opportunities that lead to an increase in high school graduation and
pathways to college or career and reductions in young people’s experience to violence.
Key Infrastructure Investments
Proactively maintaining an efficient and effective infrastructure will meet the high level of
community expectations. We will plan for and invest in critical infrastructure improvements that
enhance safety, improve life quality, and support opportunities for redevelopment, while sustaining
the natural environment.
Local Economy
Brooklyn Center is a mature, fully developed first ring suburb of Minneapolis. With its affordable
housing, excellent schools, beautiful parks, and convenient transportation access it has the attributes
to continue as a vibrant community for many years to come.
The City experienced its most rapid growth from 1950 to 1970 when the City’s population grew
from 4,300 to its peak of 35,173. The 2015 population estimated from the Metropolitan Council
estimates the population for Brooklyn Center at 29,889. The number of housing units has decreased
from 11,704 in 1990 to an estimated 10,756. As in many mature, first-ring suburbs there is a trend
toward conversion of single family homes to rental properties.
The City’s taxable market value is $1,585,451,710 for taxes payable 2016, which is an increase of
$95,903,634 or 6.4 percent from last year. The taxable market value increase is driven by large
increase in residential (11.4%) and apartment (4.6%). The total tax capacity of the City is estimated
at $21,599,516 compared to $20,703,061 in 2015, which is an increase of $896,455 (4.3%).
3
Residential housing makes up 48.7% of the 2016 tax capacity base which is an increase of 2.1%
from the 2015 tax capacity base, while the commercial and industrial portion of the tax base
decreased by 1.9%. According to the Hennepin County Assessor’s Office, for the valuation used to
calculate the 2016 property tax payments, the median value home in Brooklyn Center is $142,100
compared to $131,400 in the previous valuation.
Major transportation routes in and through the City, including Interstates 94 and 694, and State
Highways 100 and 252, have provided a continued impetus for development of a strong commercial
tax base in the City along these corridors.
There are no large, undeveloped tracts of land in Brooklyn Center and no potential for annexation of
additional undeveloped land. Therefore, the revitalization of Brooklyn Center is proceeding on
three tracks: redevelopment and renewal of the commercial and industrial areas of the City;
reconstruction and enhancement of its streets, utilities, and parks; and the revitalization of
neighborhoods.
The hospitality industry contributes a significant amount to Brooklyn Center’s economy. Lodging
tax receipts for fiscal year 2015 totaled $1,075,425, which is an increase of $160,774 from 2014.
City issued building permits in 2015 had a total permit value of $34,749,804. In the past three years
building permit values have totaled over $150 million, showing a continued trend of significant
investments being made in the community.
Long Term Financial Planning
The City maintains a comprehensive Capital Improvement Plan to facilitate the replacement of its
aging infrastructure. When streets are reconstructed in this program, aging water, sanitary and
storm sewer infrastructure is also repaired or replaced. These improvements are funded by a
combination of general obligation improvement bonds supported with special assessments against
benefited properties and cash from the capital projects funds and utility enterprise funds. About one
twenty-fifth of the City’s streets and utilities are reconstructed each year. It is expected that this
will be an ongoing process and the Plan is reviewed and amended as a part of each budget cycle. In
addition, cash flows for all funds providing financing for the Plan are updated for cash flow
projections during the 15 year timeframe of the Plan. The Capital Improvements Plan projects
completion of the first citywide round of reconstruction of the streets and utilities throughout the
entire community by 2021. An additional benefit of these neighborhood projects has been the
increased investment by residents in their properties following reconstruction projects.
The development of utility rate models and of non-utility cash flow projection models has improved
the City’s ability to plan and generate cash for operations, scheduled maintenance and capital
improvements. A plan for the maintenance and upgrading of the City’s buildings and facilities is
being incorporated into spending plans for both operational repairs and for large capital expenditure
type improvements.
4
Major Initiatives
A new water treatment plant came online at the beginning of 2016. The (estimated) total cost of the
water treatment plant is $19.66 million. Financing is being achieved through a low interest loan
under the Drinking Water Revolving Loan Fund through the Minnesota Public Facility Authority
(PFA) loan program. The loan will be repaid over twenty years at an interest rate of one percent.
Water rates are being adjusted over a three year period to provide sufficient revenue for the annual
loan repayments.
Successful redevelopment continues to be the key to commercial and industrial tax base growth
including:
Shingle Creek Crossing, an 80-acre P.U.D. that includes the redevelopment of the former Brookdale
Mall.
In 2011, a significant portion of Brookdale Mall was removed and planned for
redevelopment of a shopping center that included the existing Sears and Kohl’s department
stores and the Applebee’s restaurant. The initial phase included the partial daylighting of
Shingle Creek and the infrastructure improvements for an 183,000 square-foot Walmart
store, 15 new building pads, and the renovation of 169,000 square-feet of the former
Brookdale Mall.
In 2012, the Walmart store was opened and construction began on a 38,000 square-foot
building for LA Fitness and three retail buildings providing 29,134 square-feet of new
commercial tenant space.
nd
In 2013, the 2 phase of the site improvements was completed. The LA Fitness store was
opened and several tenant improvements within the three retail buildings were completed
and the buildings occupied. Site plans were approved for the Discount Tire Store, a fourth
multi-tenant retail building, and replacement of the food court portion of the former mall
with ten retail buildings to facilitate several junior box retailers.
Development activity scheduled for 2014 include the demolition of the 169,000 square-foot
food court building with the immediate construction of 92,000 square-feet of retail
buildings, the construction of an 11,200 square-foot multi-tenant building, the construction
of a 6,673 square-foot multi-tenant retail/restaurant building and site plan approvals for the
remaining four lots within the former Food Court lot. Major tenants that occupied these new
retail spaces in the spring of 2015, include Michaels, TJ Maxx, Jimmy John Restaurant and
Aspen Dental.
Other business activity in 2015 included the completion/opening of the Discount Tire Store,
Kid’s Foot Locker, Rue 21, Villa, a lease with Caribou Coffee and Bruegger’s Bagel was
signed, and a PUD amendment to the former Kohl’s site was approved to add an additional
9,400 square-foot retail building.
The southern portion of the 80 acre Opportunity Site, comprises 46 acres planned for a mixed use
commercial, office and residential P.U.D.
A housing market study was completed by the McCombs Group and the architectural firm
of ESG was retained to prepare a mixed use concept plan for this 46 acre site.
On December 20, 2013, the EDA acquired the 23.2 acre Brookdale Square shopping center
site which adjoins the EDA’s 8.4 acre former Brookdale Ford dealership property.
5
In 2014, the EDA acquired an additional 1.6 acre site and has discussed future
redevelopment plans with the four remaining businesses and/or property owner along John
Martin Drive (the northern portion of this redevelopment area).
In 2015, the EDA adopted the necessary findings of blighted building conditions that would
qualify this area as a future Tax Increment Redevelopment District or a Renewal and
Renovation District. The demolition of the buildings was completed in the fall of 2015.
Additionally in 2015, the EDA entered into a preliminary development agreement with Sand
Development Company for the phased development of seven apartment buildings, providing
748 market rate apartment units with underground parking, and project amenities designed
for today’s apartment life style within the Metro area. The initial phase of this development
includes two apartment buildings with 300 units and the central park area with a recreational
building, pool and patio areas.
Luther Auto Group has completed a major portion of their redevelopment plans for the 39 acres
located on the north side of the I-694 and Brooklyn Boulevard interchange.
The 2010 major renovations to the Chevrolet and Buick & GMC dealerships.
The 2012 completion of a 52,228 square-foot Honda dealership and a 53,830 square-foot
Toyota dealership.
The 2013 approvals for the construction of a 42,360 square-foot Volkswagen dealership and
th
a 2.8 acre expansion of the Honda Dealership’s sales lot which will open up space for a 6
dealership along 694.
In 2014, Luther demolished the old Honda dealership buildings and began construction of
the new Volkswagen dealership and completed expansion of Honda sales lot. The
Volkswagen dealership opened in 2015.
Additionally, Luther’s master plans for this area include as additional dealership with
frontage along 694. One of the two buildings that occupied this future dealership site,
Atlantic Pool, was demolished in 2015.
Redevelopment of industrial properties include:
In 2014, the Minnesota Department of Agriculture and the Minnesota Pollution Control
Agency approved a Soils Investigation and Remediation Action Plan for the former Howe
Fertilizer Site and adjoining railroad property. The City received environmental cleanup
funds from Hennepin County, DEED and the Met Council. The three grants funded a $1.5
million cleanup action and enabled the developer to proceed with the development of a
61,000 square building that was completed in 2015
In 2014, Sign Zone completed the acquisition and renovation of the 140,000 square-feet of
office/industrial space at the former Palmer Lake Plaza office industrial buildings which
enabled Sign Zone plans to consolidate their business operations and have their corporate
headquarters in Brooklyn Center.
Additional development activities in 2014/2015 include:
The EDA acquired the former Chrysler Auto Dealership, also known as Cars with Heart, a 5
acre commercial site at 6121 Brooklyn Boulevard. The buildings have been demolished and
the EDA has approved plans and entered into a development agreement for the construction
of a 156 unit senior apartment building that provides affordable assisted care opportunities
for senior citizens.
6
th
The Northport Elementary School completed the 5 phase of their building renovation
plans, which included the expansion of their parking lot, a parent drop off zone, a separate
bus unloading area that also provides 38 parking stalls for park use, and new playfields
which complements the Northport Community Park.
The Three River Park District provided funding for a realignment of Twin Lakes Regional
Trail Corridor within the eastern portion of planned renovation of the Lake Pointe
Apartments. Additionally, planning for the 2016-17 construction of an extension of this
th
regional trail along 57 Avenue, east of State Highway 100, to connect to the Mississippi
Regional Corridor has begun.
The Brooklyn Boulevard bridge and trail improvements over State Highway 100 were
completed and a cooperative grant application with Hennepin County has received favorable
scoring for the Federal funding of the reconstruction of the southern portion of the Brooklyn
Boulevard Corridor Study (southern border of the City to Co. Rd. 10/Bass Lake Road).
Construction is planned for 2018.
In 2015, construction of the New Millennium Academy, a 550 student Charter School
commenced on the former Malmborg’s Nursery site and is scheduled to open in the fall of
2016.
Relevant Financial Policies
The City of Brooklyn Center includes in its Financial Policies a requirement that the General Fund
balance at year end must be between 50.0% and 52.0% of the ensuing year’s General Fund
operating budget. This provides both for cash flow needs and emergency expenditures in the short
term.
The City’s Capital Project Funding Policy provides recurring sources of funding for the City’s 15-
year Capital Improvement Plan. The Policy specifically identifies three main funding sources as
follows:
1.Audited year-end General Fund unassigned fund balance above 52% of the next year’s
General Fund operating budget
2.Audited year-end Liquor Fund unrestricted cash balance that exceeds three and a half
months of the next year’s operating budget and one year of budgeted capital equipment
needs.
3.Local Governmental Aid (LGA) received in the amount of $650,000 or half of the amount
received by the City (whichever is greater)
Also included in the Financial Policies are internal control directives to protect the City’s assets
from loss, theft or misuse. These controls provide reasonable assurance of the safety of the City’s
assets while recognizing that management estimates and judgments as to the cost of such controls
are also important to deriving maximum benefit from these controls.
7
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Brooklyn Center for
its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2014.
The City was first awarded this certificate in 1966. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized CAFR. The
CAFR must satisfy both accounting principles generally accepted in the United States and
applicable federal, state and local legal requirements.
A Certificate of Achievement is valid for a period of one year. It is expected that the 2015 report
conforms to Certificate of Achievement Program requirements. It will be submitted to the GFOA to
determine its eligibility for another certificate.
The preparation and publication of this report would not have been possible without the dedicated
and efficient work of the Finance staff, most especially Andrew Splinter, the Assistant Finance
Director. We would like to acknowledge all staff that contributed their efforts to the Finance
operations in 2015. 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,
8
CITY OF BROOKLYN CENTER, MINNESOTA
PRINCIPAL OFFICIALS
December 31, 2015
NamePositionTerm of OfficeTerm Expires
ELECTED OFFICIALS
Tim WillsonMayorFour YearsDecember 31, 2018
April GravesCouncil MemberFour YearsDecember 31, 2018
Kris Lawrence-AndersonCouncil MemberFour YearsDecember 31, 2016
Dan RyanCouncil MemberFour YearsDecember 31, 2018
Lin MyszkowskiCouncil MemberFour YearsDecember 31, 2016
APPOINTED OFFICIALS
Cornelius L. BoganeyCity ManagerAppointed
Troy GilchristCity AttorneyContractual Appointee
Sharon KnutsonCity ClerkAppointed
Vickie SchleuningAssistant City Manager/Building and Community Standards DirectorAppointed
Tim GannonPolice ChiefAppointed
Gary EitelBusiness and Development DirectorAppointed
Lee GatlinFire ChiefAppointed
James GlasoeCommunity Activities, Recreation and Services DirectorAppointed
Steve LillehaugDirector of Public Works/City EngineerAppointed
Nathan ReinhardtFinance DirectorAppointed
9
CITY OF BROOKLYN CENTER, MINNESOTA
ORGANIZATIONAL CHART
December 31, 2015
10
11
12
CźƓğƓĭźğƌ
{ĻĭƷźƚƓ
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Brooklyn Center, Minnesota
RFS
EPORT ON THE INANCIAL TATEMENTS
We have audited the 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,
Minnesota (the City) as of and for the year ended December 31, 2015, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
M
’RFS
ANAGEMENTSESPONSIBILITY FOR THE INANCIALTATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
A’R
UDITORSESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
13
O
PINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of December 31, 2015, and the
respective changes in financial position and, where applicable, cash flows thereof, and the budgetary
comparison for the General Fund and budgeted major special revenue funds for the year then ended, in
accordance with accounting principles generally accepted in the United States of America.
EM
MPHASIS OF ATTER
As described in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions—an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68,
during the year ended December 31, 2015. Our opinion is not modified with respect to this matter.
OM
THERATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the GASB, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
statements and schedules, and statistical section, as listed in the table of contents, are presented for
purposes of additional analysis and are not required parts of the basic financial statements.
The combining and individual fund statements and schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual fund statements and schedules are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
(continued)
14
ORRGAS
THEREPORTINGEQUIRED BY OVERNMENT UDITING TANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2016
on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City’s internal control over financial
reporting and compliance.
Minneapolis, Minnesota
May 23, 2016
15
16
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
As management of the City of Brooklyn Center (the City), we offer readers of the City's Comprehensive Annual Financial Report
(CAFR), this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2015.
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 1-8 of this CAFR.
Financial Highlights
•The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the
close of the most recent fiscal year by $134,910,426 (net position). Of this amount, $2,956,794 (unrestricted net position) may
be used to meet the City's ongoing obligations to citizens and creditors.
•The City’s total net position increased by $5,799,641 (4.49%) from the previous year. The increase can be primarily
attributed to capital grants for public works which includes funds spent on Municipal State Aid Street Improvements
in 2015, new special assessment levies, and other funding related to construction of City infrastructure.
•As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$48,418,988, which is an increase of $2,213,800 (4.79%) from the previous year. Of the total fund balance, $7,862,179
(16.24%) is unassigned, which is free from any internal or external constraints of its use.
•The General fund has a fund balance of $11,170,917 at the close of the current fiscal year. During 2015, the fund balance
increased $150,836 (1.37%) from the previous year. The unassigned fund balance at year end is $10,287,243, which
represents 52% of the following years budget. The remaining portion of the fund balance is nonspendable or assigned (for
the capital improvement funding plan).
•The City’s total outstanding bonded debt increased by $26,220,158 during the current fiscal year, from $24,285,000 to
$50,505,158. The City retired $3,180,352 in principal, refunded $8,260,000 in principal (including a crossover advanced
refunding of $6,600,000), and issued $22,800,510 in combined new debt for the construction of a water treatment plant
and infrastructure improvements.
•The net position of the City was negatively impacted due to the required implementation of GASB Statement No. 68,
which related to the accounting treatment of defined benefit pension plans, specifically the Public Employees Retirement
Association of Minnesota (PERA) and the Brooklyn Center Fire Relief Association. This is a result of a change in an
accounting principle and does not affect the City's obligation requirements as set by Minnesota statute. This is more fully
described in the notes to the financial statements. While the accounting standard changed, the City will continue to fund the
pension plan based on the required contribution rates as set by Minnesota statute.
Overview of the Financial Statements
The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City's basic
financial statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This CAFR also contains other supplementary information in addition to the basic financial statements
themselves.
Government-Wide Financial Statements: The government-wide financial statements are designed to provide readers with a
broad overview of the City's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred
inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the City is improving or deteriorating.
17
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion
of their costs through user fees and charges (business-type activities). The governmental activities of the City include: general
government, public safety, public works, community services, parks & recreation, economic development, and interest on
long-term debt. The business- type activities of the City include: municipal liquor, golf course, Earle Brown Heritage Center,
water utility, sanitary sewer utility, storm drainage utility, street light utility, and the recycling utility.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally
separate Housing and Redevelopment Authority and Economic Development Authority, for which the City is financially
accountable. Although legally separate, these component units, function for all practical purposes as a department of the City, and
therefore have been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 29 through 31 of this CAFR.
Fund Financial Statements: A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The City, like state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into two
categories: governmental funds and proprietary funds.
Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial
requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near-term
financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
The City maintains 18 individual governmental funds. Information is presented separately in the governmental fund balance sheet
and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the following: General fund,
Tax Increment District No. 3, Tax Increment District No. 5, Debt Service, Capital Improvements, Municipal State Aid for
Construction, and the Infrastructure Construction fund, which are considered to be major funds. Data from the other 11
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements or schedules, elsewhere in this CAFR.
18
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
The City adopts an annual appropriated budget for nearly all funds presented in this CAFR. A budgetary comparison statement
has been provided in the basic financial statements for the General fund, the Tax Increment District No. 3 fund and the Tax
Increment District No. 5 fund. The budgetary comparison statements for any nonmajor funds are provided elsewhere in this
CAFR.
The basic governmental fund financial statements can be found on pages 32 through 41 of this CAFR.
Proprietary Funds: Proprietary funds provide similar information to the government-wide financial statements, but in more
detail. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its: municipal liquor, golf course, Earle Brown Heritage Center, water
utility, sanitary sewer utility, storm drainage utility, street light utility, and recycling utility. All of the City's enterprise funds are
considered to be major funds, and separate information is provided for each of them in the basic financial statements.
Internal service funds
are an accounting device to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its: central garage, employee retirement, pension - coordinated, pension -
police and fire, and compensated absences accumulations. All internal service funds are combined into a single, aggregated
presentation in the proprietary fund financial statements. Individual data for the internal service funds is provided in the form of
combining statements elsewhere in this CAFR. Because all of these services predominately benefit governmental rather than
business-type functions, they have been included as governmental activities in the government-wide financial statements.
The basic proprietary fund financial statements can be found on pages 42 through 47 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 49 through 90 of this CAFR.
Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information, for other post-employment benefits (OPEB) and defined benefit pension plans. The schedules
of funding progress, City contributions, City's proportionate share of net pension liability, and schedule of changes in Net Pension
Asset can be found on pages 91 through 98 of this CAFR. The combining and budgetary comparison statements referred to earlier
in connection with nonmajor governmental funds and internal service funds are presented immediately following the required
supplementary information. Combining and budgetary comparison statements can be found on pages 102 through 148 of this CAFR.
19
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indictor of a government's financial position. In the case of the City,
assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $134,910,426 at the close of the
most recent fiscal year.
The largest portion of the City's net position ($95,143,039 or 70.52%) reflects its investment in capital assets, which includes: land
infrastructure, buildings, and machinery & equipment, less any related debt used to acquire those assets that is still outstanding.
The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to
repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
CITY OF BROOKLYN CENTER - SUMMARY OF NET POSITION
Governmental ActivitiesBusiness-Type ActivitiesTotal
201520142015201420152014
Current and other assets
$ 60,464,70167,456,601$ 13,392,970$ 11,047,209$ 80,849,571$ 71,511,910$
Capital Assets
49,392,57756,533,048 66,570,149 48,537,132 123,103,197 97,929,709
Total assets
109,857,278123,989,649 79,963,119 59,584,341 203,952,768 169,441,619
Deferred outflows of resources
2,436,688-- 2,436,688--
Long-term liabilities outstanding
21,243,87833,435,695 19,944,910 1,660,000 53,380,605 22,903,878
Other liabilities
5,246,65011,930,069 4,364,340 2,567,444 16,294,409 7,814,094
Total liabilities
26,490,52845,365,764 24,309,250 4,227,444 69,675,014 30,717,972
Deferred inflows of resources
1,804,016-- 1,804,016--
Net investment in capital assets
42,947,57747,941,800 47,201,239 48,537,132 95,143,039 91,484,709
Restricted
28,061,97736,810,593 - - 36,810,593 28,061,977
Unrestricte
d
12,357,196(5,495,836) 8,452,630 6,819,765 2,956,794 19,176,961
Total Net Position
$ 83,366,75079,256,557$ 55,653,869$ 55,356,897$ 134,910,426$ 138,723,647$
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the
government as a whole, as well as for its separate governmental and business-type activities with the exception of unrestricted
net position in the governmental activities.
A portion of the City’s net position (27.29%) represents resources that are subject to external restrictions on how they may be
used. The remaining portion (2.19%) may be used to meet the City's ongoing obligations.
The governmental activities have a significant increase in current assets from the previous year. The largest factor in this increase
is with the cash with fiscal agents. At the end of 2015, the City had $6,782,081 in escrow as part of a crossover advanced refunding.
The business-type activities had large increases in capital assets and long-term liabilities. These increases are primarily due to
the City's construction of a water treatment plant, which is being funded with debt proceeds from the Minnesota Public
Facilities Authority (PFA) loan program.
The governmental activities, also had a significant increase in the amount of deferred outflows of resources, long-term liabilities,
and deferred inflows of resources from the previous year. The primary reason for the increase was the implementation of GASB
Statement No. 68 in which the City is required to report its proportionate share of the Minnesota Public Employees Retirement
Association (PERA) net pension liabilities. Recording the liability does not change the City's future contibution requirements or
obligations under the plans, which are determined by Minnesota statutes.
20
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Governmental Activities
Governmental activities resulted in an increase of the City's net position by $3,931,036 (67.78%), accounting for the majority of the
City's increase in net position. Key elements of the changes are as follows:
CITY OF BROOKLYN CENTER - CHANGES IN NET POSITION
Governmental ActivitiesBusiness-Type ActivitiesTotal
Revenues:
*20152014*20152014*20152014
Program revenues
Charges for services
$2,218,123$2,607,035$20,070,217$19,383,056$22,288,340$21,990,091
Operating grants and contributions
2,605,4771,746,63730,52263,5472,635,9991,810,184
Capital grants and contributions
5,184,3811,671,830- 5,184,381-1,671,830
General revenues
Property taxes
14,988,00715,320,998 - - 15,320,998 14,988,007
Other taxes
4,880,7924,705,014- 4,880,792-4,705,014
Grants and contributions not
restricted to specific programs
1,670,9281,499,015- 1,670,928-1,499,015
Unrestricted investment earnings
236,936254,366 127,686 108,650 382,052 345,586
Gain on disposal of assets
27,10027,800 - - 27,800 27,100
Total revenues
27,481,57432,162,865 20,228,425 19,555,253 52,391,290 47,036,827
Expenses:
General government
3,527,3233,736,487- 3,527,323-3,736,487
Public safety
10,186,64510,707,602 - - 10,707,602 10,186,645
Public works
3,867,4063,688,238- 3,867,406-3,688,238
Community services
145,503135,604 - - 135,604 145,503
Parks and recreation
3,053,3282,977,707- 3,053,328-2,977,707
Economic development
5,419,3043,234,623- 5,419,304-3,234,623
Interest on long-term debt
887,190723,000 - - 723,000 887,190
Municipal liquor
-- 5,816,363 5,690,792 5,816,363 5,690,792
Golf course
-- 270,307 271,698 270,307 271,698
Earle Brown Heritage Center
-- 4,739,543 5,137,712 4,739,543 5,137,712
Water utility
-- 2,179,892 1,900,518 2,179,892 1,900,518
Sanitary sewer utility
-- 3,694,880 3,514,687 3,694,880 3,514,687
Storm drainage utility
-- 1,883,154 1,784,907 1,883,154 1,784,907
Street light utility
-- 281,661 245,426 281,661 245,426
Recycling utility
-- 292,282 291,239 292,282 291,239
Total expenses
24,856,39327,433,567 19,158,082 18,836,979 46,591,649 43,693,372
Change in net position
before transfers
4,729,2982,625,1811,070,343718,2745,799,6413,343,455
Transfers
675,257236,312 (236,312) (675,257) - -
Transfers - capital assets
(639,266)(1,034,574) 1,034,574 639,266 - -
Change in net position
3,931,0362,661,1721,868,605682,2835,799,6413,343,455
et Position - January 1
N
80,705,57883,366,750 55,356,897 54,674,614 138,723,647 135,380,192
Change in accounting principle
-(8,041,229) (1,571,633) - (9,612,862) -
et Position - January 1, restate
Nd
80,705,57875,325,521 53,785,264 54,674,614 129,110,785 135,380,192
et Position - December 31
N
$ 83,366,75079,256,557$ 55,653,869$ 55,356,897$ 134,910,426$ 138,723,647$
* GASB Statement No. 68 was implemented for the year ended December 31, 2015 and required a $9,612,862 restatement
of beginning net position. Prior year amounts were not restated causing a variance in ending net position at December 31,
2014 and beginning net position on January 1, 2015.
21
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Governmental activities accounted for 67.78% of the increase in the City's net position. The change in net position from the
previous year can be attributed to favorable budget variances in General Fund expenditures, new special assessment levies
totalling $1.6 million and the spending of $2.6 million on Municipal State Aid street construction which was offset by capital
grants for street contruction projects.
A significant change from the previous year is shown in capital grants, mostly due to a municipal state aid receivable recognized as
revenue in the government-wide statements. The City had completed a significant street infrastructure improvement project in
2015, which was funded from special assessments to the respective property owners and municipal state-aid construction grant
funds.
Governmental activities also report a large increase in operating grants from the previous year. During 2015, the City received
economic development grants of $829,850, primarily environmental grants for clean-up of a property that is being developed as
commercial/industrial property.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Function Expenses vs. Program Revenues
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
GeneralPublic safetyPublic worksCommunityParks andEconomicInterest on
governmentservicesrecreationdevelopmentlong-term debt
ExpenseProgram Revenue
Revenues by Source
Other general revenues
Investment earnings
Other taxes
5.3%
0.8%
15.2%
Charges for services
6.9%
Operating grants
8.1%
Property taxes
47.6%
Capital grants
16.1%
22
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Business-type Activities
Business-type activities increased net position by $1,868,605, which accounts for only 32.22% of the total growth in the City's net
position. The factors contributing to this change are illustrated below:
Function Expenses vs. Program Revenues
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
MunicipalGolf courseEarle BrownWater utilitySanitaryStormStreet lightRecycling
liquorHeritagesewer utilitydrainageutilityutility
Centerutility
ExpenseProgram Revenue
Business-type Activities -Function Expenses
Street Light Utility
Storm drainage utility
1.5%
Sanitary sewer utility
9.8%
19.3%
Recycling utility
1.5%
Municipal liquor
Water utility
30.4%
11.4%
Earle Brown Heritage
Center
Golf course
24.7%
1.4%
The net position of the business-type activities increased, but operations of the Centerbrook Golf Course and Earle Brown
Heritage Center provided for decreases in net position individually. The Earle Brown Heritage Center had a positive cash flow in
2015, but a decrease in net position as a result of a large depreciation expense.
23
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Financial Analysis of the Government's Funds
Governmental Funds: The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unassigned fund balance may serve as useful measure of a government's net resources available at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $48,418,988, which
is an increase of $2,213,800 (4.79%) from the previous year. The unassigned fund balance, which is not subject to internal or
external constraints upon its use, is $7,862,179, or 16.24% of total fund balance. A small portion of the fund balance, $80,359
(0.17%) is in nonspendable form. The remaining fund balance has either internal or external constraints upon its use, and can be
broken down into the following components: $30,365,411 (62.71%) of restricted fund balance; $9,306,224 (19.22%) of committed
fund balance; and $804,815 (1.66%) of assigned fund balance. A more detailed breakdown of fund balance components can be
found in the basic financial statements.
The General fund is the primary operating fund of the City. At the end of the current fiscal year, total fund balance is $11,170,917.
As a measure of the General fund's liquidity, it may be useful to compare both unassigned and total fund balance, to total fund
expenditures. Unassigned balance, which is $10,287,243, represents 57.00% of the current year General fund expenditures. Total
General fund balance represents 61.90% of those same expenditures.
The fund balance of the City’s general fund increased by $150,836 (1.37%) from the previous year. The City had budgeted for
a break-even year in 2015, however the City Council approved a transfer to the Capital Improvements Fund of $908,761 of
available fund balance. Prior to the transfer the City had a significant increase in fund balance, which was attributed to a positive
variance expenditures. The most significant expenditure budget variance was in the public safety, due to vacancies in
personnel and lower fuel costs.
The Tax Increment District No. 3 fund has a total fund balance of $17,196,759 at the end of the year. The decrease in fund
balance was $701,990 (3.92%) from the previous year. The fund received $2,953,728 in tax increment revenues, expended
$1,483,476 on Economic Development and transferred $2,395,982 for Debt Service. As of December 31, 2015 the fund has
total assets held for resale of $15,578,075.
The Tax Increment District No. 5 fund has a total fund balance deficit of $2,241,466 at the end of the year. The decrease in
fund balance was $941,607 (72.44%) from the previous year. The fund received tax increment revenues of $353,417 and
made a pay as you go payment on a tax increment note of $466,912. As of December 31, 2015 the fund had notes outstanding
of $279,400 and an advance from Tax Increment District No. 2 outstanding of $2,463,683.
The Debt Service fund has a total fund balance of $8,747,914 at the end of the year. The increase in fund balance was $6,838,473
(358.14%) from the previous year. The increase in fund balance is primarily the result of a crossover advanced refunding
of $6,600,000.
The Capital Improvements fund has a total fund balance of $4,408,879, a decrease of $2,100,351 (32.27%) from the previous
year. The decrease was a result of the approved spending of fund balance for the City Hall and Community Center remodel.
The Municipal State Aid Construction fund has a fund balance of $223,531 at the end of the year. The decrease in fund
balance was $1,606,569 (87.79%) from the previous year. As of December 31, 2015 the fund had a receivable balance in the
amount of $3,583,557 in Municipal State Aid Construction funds.
24
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
The Infrastructure Construction fund has an ending deficit fund balance of $183,145 a increase of $280,048 (60.46%) from the
previous year. The fund incurred $1,455,128 of capital expenditures during the year for the Freeway Park Area and 63rd Avenue
neighborhood re-construction projects.
Proprietary Funds: The City's proprietary funds provide the same type of information presented as business-type activities
found in the government-wide financial statements, but in more detail.
The enterprise funds have a combined ending net position of $57,640,210, of which $10,438,971 (18.11%) is unrestricted and can
be used to meet the operations. As a measure of the liquidity of the enterprise funds, it may be useful to compare the unrestricted
net position to the operating expenses. For the current year, unrestricted net position is 83.92% of the current year operating
expenses. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's
business-type activities.
General Fund Budgetary Highlights
During the year, there were no amendments to the General Fund budget. Actual revenues and other financing sources were
under the adopted budget by $27,654. The major contributor to this decrease was in delinquent property tax collections, the
City had a negative $48,672 as a result of tax refunds and was under budget for excess tax revenues by $141,320. Actual
expenditures and other financing uses were lower than the final budget for the year by $178,490. This was the result of a
non-budgeted transfer of $908,761 to the Capital Improvement Fund in accordance with City policy to transfer unassigned
fund balance of the General Fund that exceeds 52% of General Fund budgeted expenditures following the completion of the
annual audit. The reduction in fund balance from the transfer was offset by savings from several staff positions being left
unfilled during a portion of 2015, in the Police and Public Works departments.
25
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Capital Asset and Debt Administration
Capital Assets: The City's investment in capital assets for its governmental and business-type activities at the end of the
current year, amounts to $123,103,197 (net of accumulated depreciation). This investment in capital assets includes: land,
buildings, infrastructure, machinery and equipment and construction in progress. The City's investment in capital assets
increased $25,173,488 (25.71%) from the previous year.
Major capital asset events during the current year included the following:
•The Freeway Park Area Neighborhood infrastructure reconstruction project is near completion, with $8,791,044 of
additions to construction in progress. This amount includes work on streets, as well as water, sewer and storm utilities.
•The 63rd Avenue Neighborhood infrastructure reconstruction project is near completion, with $4,676,392 of additions to
construction in progress. This amount includes work on streets, as well as water, sewer and storm utilities.
•The City continued construction of a water treatment plant. At the end of 2015, the City had completed $19,371,703 of the
$19,662,352 project. The project is being funded through a low interest loan (1%) with the Minnesota Public Facilities
Authority. The water treatment plant became operational in January 2016.
•The construction of a Community Amphitheater is near completion, with $632,925 of additions to construction in progress.
The Amphitheater was primarily funded through donations.
•The City is near completion with a City Hall/Community Center remodel, with $3,519,011 of additions to construction
in progress. The project included roof replacement and mechanical and electrical upgrades.
•The Central Garage replaced 17 pieces of machinery & equipment during the year. The total outlay for machinery and
equipment during the year was $1,039,530. The additions include, but are not limited to: mowers, police vehicles,
a public works truck and a street sweeper.
CITY OF BROOKLYN CENTER - CAPITAL ASSETS
(net of depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
Land
$3,537,473$3,537,473$3,194,983$3,194,983$6,732,456$6,732,456
Easements
95,13290,594 11,976 16,039 102,570 111,171
Construction in progress
9,011,1383,276,21325,636,6048,425,51134,647,74211,701,724
Land improvements
-- 179,944 196,571 179,944 196,571
Other park improvements
5,728,4965,955,889- 5,728,496-5,955,889
Buildings and structures
7,626,6817,718,9302,723,1253,307,37010,349,80611,026,300
Machinery and equipment
3,963,1683,763,003273,538297,9764,236,7064,060,979
Streets
25,045,93826,575,498 - - 26,575,498 25,045,938
Street light systems
-- 634,678 630,342 634,678 630,342
Mains and lines
-- 33,915,301 32,468,340 33,915,301 32,468,340
Total
$ 49,392,57856,533,048$ 66,570,149$ 48,537,132$ 123,103,197$ 97,929,710$
Additional information on the City’s capital assets can be found in Note 3 (C) on pages 64 through 65 of this CAFR.
26
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
Long-Term Debt: At the end of the current year, the City had outstanding long-term bonded debt of $50,505,158.
CITY OF BROOKLYN CENTER - OUTSTANDING DEBT
Governmental ActivitiesBusiness-type ActivitiesTotal
201520142015201420152014
General obligation tax increment bonds20,885,000$$16,040,000$-$ 20,885,000-$$16,040,000
General obligation improvement bonds8,591,2486,445,000- 8,591,248-6,445,000
General obligation revenue bonds- 3,483,752-1,800,0003,483,7521,800,000
General obligation revenue notes- 17,545,158- 17,545,158--
Compensated absences1,254,8511,282,093- 1,254,851-1,282,093
Net pension liability11,509,476-- 11,509,476--
Net OPEB obligation710,605629,994- 710,605-629,994
Total$42,951,180$24,397,087$21,028,910$1,800,000$63,980,090$26,197,087
The City’s total bonded debt increased $26,220,158 (107.97%) from the previous year. The City retired $3,180,352 in
principal, refunded $8,260,000 in principal (including a crossover advanced refunding of $6,600,000), and issued $22,800,510
in combined new debt for the construction of a water treatment plant and infrastructure improvements.
The City’s bond rating is AA from Standard & Poor’s Ratings Services.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Market Value. The
current debt limitation for the City is $44,686,442. The City does not currently have any debt outstanding that is applicable to the
limit.
Additional information on the City’s long-term debt can be found in Note 3 (F) on pages 69 through 72 of this CAFR.
Economic Factors and Next Year's Budget and Rates
All of these factors were considered in the preparation of the City’s budget for the 2016 fiscal year.
•The unemployment rate for the City is 4.00% at the end of the 2015 fiscal year, which is a increase from the rate of 3.60% a
year ago. This compares to the State’s average unemployment rate of 3.70% and the national average of 4.80%.
•An increase in estimated taxable market value of 6.4 percent from taxes payable 2015 to 2016. The taxable market value
increase was driven by significant increases in residential property values (11.4%).
•Continuing redevelopment throughout the City will yield net growth in tax base and stability in tax base along with providing job
growth in the City.
•Development activity continues at the Shingle Creek Crossing site, the business activity in 2015 included the completion of
the Discount Tire Store, Kid's Foot Locker, Rue 21, Villa, a lease with Caribou Coffee and Brueggers Bagel and a PUD
amendment to the former Kohl's site was approved to add an additional 9,400 square foot retail building.
•In December 2013 the EDA purchased a 23.2 acre property formerly known as the Brookdale Square shopping center which
adjoins the EDA's 8.4 acre former Brookdale Ford dealership site. The EDA has entered into a preliminary development
agreement with Sand Development Company for the phased development of seven apartment buildings, providing 748
market rate apartment units with underground parking, and project amenities designed for today's apartment life style within
the Metro area. The initial phase of this development includes two apartment buildings with 300 units and a central park
area with a recreational building, pool and patio areas.
27
CITY OF BROOKLYN CENTER, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
•Hennepin County, Minnesota Department of Employment and Economic Development (DEED), and the Metropolitan Council
approved three grant applications totaling $1.5 million to complete a soils investigation and remediation action plan for the
former Howe Fertilizer Site. This enabled a developer to proceed with the development of a 61,000 square foot building that
was completed and leased in 2015.
•The EDA acquired the former Chrysler Auto Dealership, also known as Cars with Heart, a five acre commercial site at
6121 Brooklyn Boulevard. The buildings have been demolished and the EDA has approved plans and entered into a
development agreement for the construction of a 156 unit senior apartment building that provides affordable assisted care
opportunities for senior citizens.
•The Three Rivers Park District provided funding for a realignment of the Twin Lakes Regional Trail Corridor within the
eastern portion of the planned renovation of the Lake Pointe Apartments. Planning for the 2016-17 construction of an
extension of this regional trail along 57th Avenue east of Highway 100, to connect the Mississippi Regional Corridor is
underway.
•The Brooklyn Boulevard bridge and trail improvements over State Highway 100 were completed and a cooperative grant
application with Hennepin County has received favorable scoring for Federal funding of the reconstruction of the southern
portion of the Brooklyn Boulevard Corridor Study (southern border of the City to County Road 10/Bass Lake Road).
Construction is planned for 2018.
•In 2015, construction of the New Millennium Academy, a 550 student charter school commenced on the former Malmborg's
Nursery site and is scheduled to open in the fall of 2016.
•The City's water treatment plant is fully operational beginning in January 2016, which reduced the level of manganese from
our water supply. The estimated total cost for the water treatment plant is $19.66 million. Financing is being provided
through a low interest loan under the Drinking Water Revolving Fund through the Minnesota Public Facilities (PFA) loan
program. The loan will be repaid over twenty years at an interest rate of one percent.
•Utility rates have been projected into a rolling 15 year model to allow for funding of system maintenance, technology changes
and capital repair and replacements while moderating annual rate adjustments. On January 1, 2016 the sanitary sewer utility
quarterly base charge increased from $78.45 to $80.02. The water utility rates increased for both base and consumption
charges. The quarterly base charge of $10.00 per residential and commercial irrigation meter increased to $12.20 per
meter. The consumption charge of $1.66 per 1,000 gallons (up to 30,000 gallons per quarter), increased by $0.37 per 1,000
gallons. Multi-family, commercial and industrial properties pay a quarterly base charge depending on the size of the meters
and a consumption rate per 1,000 gallons. The consumption rate increased $0.56 to $2.53 per 1,000 gallons.
The City’s policy is to maintain a General fund unassigned fund balance of 50% - 52% of the ensuing year’s budgeted General
fund operations. Additionally the City's capital project funding policy that transfers the amount of fund balance exceeding 52%
to the Capital Improvements fund following the completed audit of the City's CAFR. The City transferred $908,761 for Capital
Improvements from the General Fund. The City has assigned $804,815 (the amount exceeding 52%) for capital improvements
within the General Fund. Total unassigned and assigned fund balance at the end of 2015 was $11,092,058 (56.07%) of the
adopted 2016 budgeted expenditures.
Requests for Information
This financial report is designed to provide a general overview of the City of Brooklyn Center's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Finance Director, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430.
28
.ğƭźĭCźƓğƓĭźğƌ
{ƷğƷĻƒĻƓƷƭ
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2015
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
ASSETS
$ 12,432,85030,887,591$ 43,320,441$
Cash and investment
s
Cash with fiscal agents6,782,081 - 6,782,081
Receivables:
Accounts - ne 2,390,962407,762 2,798,724
t
Taxes572,470 - 572,470
Special assessments4,502,639 475,127 4,977,766
Internal balances2,923,811 (2,923,811) -
Due from other government -3,796,202 3,796,202
s
Prepaid items36,315 232,675 268,990
Inventorie 785,16760,839 846,006
s
Notes receivable279,400 - 279,400
Assets held for resale16,115,075 - 16,115,075
Capital assets:
Nondepreciable12,637,315 28,841,872 41,479,187
Depreciable43,895,733 37,728,277 81,624,010
Net pension asset1,092,416 - 1,092,416
Total assets123,989,649 79,963,119 203,952,768
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources2,436,688 - 2,436,688
LIABILITIES
Accounts payable1,197,543 1,321,209 2,518,752
Contracts payable238,378 1,118,724 1,357,102
Accrued salaries and wages164,408 33,531 197,939
Accrued interest payable448,419 92,878 541,297
82,489112,097 194,586
Due to other government
s
Deposits payable252,639 413,546 666,185
1,100217,963 219,063
Unearned revenu
e
Compensated absences payable:
-125,485 125,485
Due within one yea
r
Due in more than one yea -1,129,366 1,129,366
r
Net OPEB obligation:
Due in more than one yea -710,605 710,605
r
Bonds and net pension liability payable:
Due within one yea 1,084,0009,390,000 10,474,000
r
19,944,91031,595,724 51,540,634
Due in more than one yea
r
Total liabilities 45,365,764 24,309,250 69,675,014
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources 1,804,016 - 1,804,016
NET POSITION
Net investment in capital assets 47,941,800 47,201,239 95,143,039
Restricted for:
Statutory housing obligations 556,470 - 556,470
Tax increment financing19,328,012 - 19,328,012
Economic development1,522,267 - 1,522,267
Law enforcement enhancements83,686 - 83,686
Debt service11,218,383 - 11,218,383
Pension benefits1,178,922 - 1,178,922
State-aid street systems2,922,853 - 2,922,853
Unrestricted(5,495,836) 8,452,630 2,956,794
Total net position79,256,557$ 55,653,869$ 134,910,426$
The notes to the financial statements are an integral part of this statement.
29
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Charges For
FUNCTIONS/PROGRAMS
ExpensesServices
Government activities:
General governmen$ 653,5353,527,323$
t
Public safety10,707,602 548,669
Public works3,867,406 226,645
Community service -135,604
s
Parks and recreation3,053,328 564,217
225,0575,419,304
Economic developmen
t
Interest on long-term deb -723,000
t
Total government activities27,433,567 2,218,123
Business-type activities:
Municipal liquo 6,061,6805,816,363
r
Golf course270,307 208,346
Earle Brown Heritage Cente 4,649,1624,739,543
r
2,640,6652,179,892
Water utilit
y
Sanitary sewer utilit 4,095,0173,694,880
y
1,635,6551,883,154
Storm drainage utilit
y
Street light utilit 464,258281,661
y
315,434292,282
Recycling utilit
y
Total business-type activities19,158,082 20,070,217
Total46,591,649$ 22,288,340$
The notes to the financial statements are an integral part of this statement.
30
Program RevenuesNet (Expense) Revenue and Changes in Net Position
OperatingCapital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivitiesTotal
$-$ (2,873,788)-$$-$(2,873,788)
1,198,544 (8,960,389)--(8,960,389)
110,0005,151,3061,620,545-1,620,545
--(135,604)-(135,604)
98,69433,075(2,357,342)-(2,357,342)
1,198,239 (3,996,008)--(3,996,008)
--(723,000)-(723,000)
2,605,4775,184,381(17,425,586) (17,425,586)-
---245,317245,317
6,746--(55,215)(55,215)
---(90,381)(90,381)
17,832--478,605478,605
5,944--406,081406,081
---(247,499)(247,499)
---182,597182,597
---23,15223,152
-942,657942,657
30,522-
$2,635,999$5,184,381(17,425,586)942,657(16,482,929)
General revenues:
Property taxe -15,320,998 15,320,998
s
Tax increments3,805,367 - 3,805,367
Lodging taxes1,075,425 - 1,075,425
Grants and contributions not
restricted to specific programs1,670,928-1,670,928
Unrestricted investment earnings254,366127,686382,052
Gain on disposal of capital asset27,800-27,800
Transfers236,312(236,312)-
Transfers - capital assets(1,034,574)1,034,574-
Total general revenues and transfers21,356,622925,94822,282,570
Change in net positio 1,868,6053,931,036 5,799,641
n
Net position - January 183,366,750 55,356,897 138,723,647
Change in Accounting Principle - Pension(8,041,229) (1,571,633) (9,612,862)
Net position - January 1, restated75,325,521 53,785,264 129,110,785
et position - December 31$79,256,557$55,653,869$134,910,426
N
31
CITY OF BROOKLYN CENTER, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2015
TaxTax
IncrementIncrementDebt
GeneralDistrict No. 3District No. 5Service
ASSETS
Cash and investments11,457,254$ 1,667,200$ 104,859$ 2,048,021$
Cash with fiscal agents- - - 6,782,081
Receivables:
Accounts - net116,398 19,807 - -
Current taxes67,772 16,275 - 1,643
Delinquent taxes268,586 89,806 110,493 -
Special assessments137,582 - - 2,921,887
Due from other funds144,982 - - -
Due from other governments40,080 - - -
Notes receivable- - 279,400 -
Inventories44,044 - - -
Prepaid items34,815 - - -
Advances to other funds- - - -
Assets held for resale- 15,578,075 - -
Total assets12,311,513 17,371,163 494,752 11,753,632
LIABILITIES
Accounts payable343,678 84,598 102,642 1,300
Contracts payable- - - -
Accrued salaries and wages155,001 - - -
Due to other funds- - - -
Due to other governments26,026 - - 85,530
Deposits payable216,846 - - -
Unearned revenue 1,100 - - -
Advances from other funds - 2,463,683- -
Total liabilities 742,651 84,598 2,566,325 86,830
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 268,586 - - -
Unavailable revenue - tax increments - 89,806 110,493 -
Unavailable revenue - special assessments 129,359 - 2,918,888-
Unavailable revenue - notes receivable - - 59,400 -
Unavailable revenue - intergovernmental - - - -
Total deferred inflows of resources 397,945 89,806 169,893 2,918,888
FUND BALANCES (DEFICITS)
Nonspendable 78,859 - - -
Restricted 17,196,759- 8,747,914-
Committed - - - -
Assigned 804,815 - - -
Unassigned 10,287,243 (2,241,466)- -
Total fund balances (deficits) 11,170,917 17,196,759 (2,241,466) 8,747,914
Total liabilities, deferred inflows of
resources and fund balances (deficits)$12,311,513$17,371,163$ 494,752$11,753,632
The notes to the financial statements are an integral part of this statement.
32
Municipal
CapitalState AidInfrastructureOther
ImprovementsforConstructionNonmajorTotal
FundConstructionFundGovernmentalGovernmental
$ -3,210,679$ -$ 6,168,923$ 24,656,936$
-- - - 6,782,081
-- 71,308 164,692 372,205
-617 - 1,173 87,480
-9,442 - 6,663 484,990
-2,036 1,441,134 - 4,502,639
-706,834 - - 851,816
3,583,557- - 153,295 3,776,932
-- - - 279,400
-- - - 44,044
-- - 1,500 36,315
-792,488 - 2,463,683 3,256,171
-- - 537,000 16,115,075
3,583,5574,722,096 1,512,442 9,496,929 61,246,084
121,201 5,000 151,393 353,568 1,163,380
180,538 - 57,840 238,378-
--- 5,269 160,270
655,248- 51,586 706,834-
- 456 - 37 112,049
- - - 35,793 252,639
- - - - 1,100
- - - 2,463,683-
301,739 660,704 260,819 394,667 5,098,333
9,442 - - 6,663 284,691
- - - 200,299-
2,036 1,434,768- 4,485,051-
- - - - 59,400
2,699,322- - 2,699,322-
11,478 2,699,322 1,434,768 6,663 7,728,763
- - - 1,500 80,359
223,531- 4,197,207- 30,365,411
4,408,879 - 4,897,345- 9,306,224
- - - 804,815-
- (183,145)- (453) 7,862,179
4,408,879 223,531 (183,145) 9,095,599 48,418,988
$ 4,722,096$ 3,583,557$ 1,512,442$9,496,929$61,246,084
33
34
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
December 31, 2015
Fund balances - governmental funds$ 48,418,988
Amounts reported for the governmental activities within the statement
of net position are different because:
Capital assets used in governmental activities are not financial resources,
and therefore, are not reported as assets in governmental funds.
Cost of capital assets 88,432,872
Accumulated depreciation (35,791,354)
Long-term liabilities, including bonds payable, are not due and payable in the
current period, and therefore, are not reported as liabilities in governmental funds.
Bonds payable (29,476,248)
Accrued interest payable (448,419)
Some receivables are not available soon enough to pay for the current period's
expenditures, and therefore, are unavailable in governmental funds.
Delinquent property taxes receivable 284,691
Delinquent tax increments receivable 200,299
Special assessments receivable 4,485,051
Interest on notes receivable 59,400
Intergovernmental receivable 2,699,322
The Plan Fiduciary Net Position of the City's Fire Relief Association Pension Fund currently
exceeds the actuarially determined total pension liability creating a net pension asset1,092,416
Deferred outflows related to the City's Fire Relief Association Pension Fund
Net difference between projected and actual investment earnings81,506
Contributions to the plan subsequent to the measurement date148,061
Deferred inflows related to City's Fire Relief Association Pension Fund
Grant funding of contributions to the plan subsequent to the measurement date(143,061)
Internal service funds are used by management to charge the cost of certain
activities to individual funds. The assets and liabilities
are included in the governmental statement of net position.(786,967)
Total net position - governmental activities79,256,557$
The notes to the financial statements are an integral part of this statement.
35
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
TaxTax
IncrementIncrementDebt
GeneralDistrict No. 3District No. 5Service
S
REVENUE
Property taxes$ 14,456,614$ -$ 389,705-$
Tax increments 2,953,728- 353,417 -
Franchise fees - - - -
Lodging taxes 1,075,425 - - -
Licenses and permits 859,534 - - -
Intergovernmental 1,410,695 - - -
Charges for services 749,569 177,213 - -
Special assessments 148,234 - 1,120,946-
Fines and forfeits 268,116 - - -
Investment earnings (net of market value adjustment) 62,276 19,833 458 8,203
Miscellaneous 142,800 21,874 - -
Total revenues 19,173,263 3,172,648 353,875 1,518,854
S
EXPENDITURE
Current:
General government2,760,756 - - -
Public safety9,785,487 - - -
Public works1,876,899 - - -
Community services135,604 - - -
Parks and recreation2,488,990 - - -
Economic development510,827 1,483,476 1,295,482 -
Nondepartmental450,129 - - -
Capital outlay:
General government8,253 - - -
Public safety23,690 - - -
Public works3,893 - - -
Parks and recreation3,270 - - -
Debt service:
Principal- - - 3,025,000
Interest- - - 826,053
Fiscal agent fees- - - 9,838
Bond issuance costs- - - 71,102
Total expenditures18,047,798 1,483,476 1,295,482 3,931,993
Excess (deficiency) of revenues
over (under) expenditures 1,125,465 1,689,172 (941,607) (2,413,139)
)
OTHER FINANCING SOURCES (USES
Transfers in 201,684 - 2,395,982-
Issuance of debt - - 6,600,000-
Premium on issuance of debt - - 255,630-
Sale of capital assets - 4,820 - -
Transfers out (1,176,313) (2,395,982) - -
Total other financing sources (uses) (974,629) (2,391,162) 9,251,612-
Net change in fund balance 150,836 (701,990) (941,607) 6,838,473
Fund balances (deficits) - January 1 11,020,081 17,898,749 (1,299,859) 1,909,441
Fund balances (deficits) - December 31$11,170,917$17,196,759$ (2,241,466)$8,747,914
The notes to the financial statements are an integral part of this statement.
36
Municipal
CapitalState AidInfrastructureOther
ImprovementsforConstructionNonmajorTotal
FundConstructionFundGovernmentalGovernmental
$ (5,206)$ -$ 274,058-$ $ 15,115,171
- - 362,053- 3,669,198
- - 653,648- 653,648
- - - 1,075,425-
- - - 859,534-
747,076 1,072,031 1,518,674- 4,748,476
188 - 33,785 6,952 967,707
157 445,822- 1,715,159-
- - - 23,566 291,682
43,389 15,230 - 53,783 203,172
116,500 - 76,172 72,229 429,575
902,104 1,087,261 555,779 2,964,963 29,728,747
161,315 - - 16,365 2,938,436
- - 218,988- 10,004,475
109,981- 44,933 2,031,813-
- - - 135,604-
140,319 2,790,624
161,315--
- - 1,979,840- 5,269,625
- - - 450,129-
699,384 - - 27,723 735,360
- - - 19,010 42,700
2,583,849- 1,455,128 2,241,978 6,284,848
2,841,338 - 568,254- 3,412,862
- - - 3,025,000-
- - - 826,053-
- - - - 9,838
- - 17,769 28,509 117,380
3,863,352 2,693,830 1,517,830 5,240,986 38,074,747
(2,961,248) (1,606,569) (962,051) (2,276,023) (8,346,000)
1,125,216 - 818,702- 4,541,584
- 1,222,708- 2,193,540 10,016,248
- - 19,391 34,788 309,809
- - - - 4,820
(264,319)- (476,047)- (4,312,661)
860,897 1,242,099- 2,570,983 10,559,800
(2,100,351) (1,606,569) 280,048 294,960 2,213,800
6,509,230 1,830,100 (463,193) 8,800,639 46,205,188
$ 4,408,879$ 223,531$ (183,145)$9,095,599$48,418,988
37
CITY OF BROOKLYN CENTER, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Total net change in fund balances - governmental funds2,213,800$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives as depreciation.
Capital outlays10,465,952
Depreciation expense(2,489,587)
Contributions of capital assets to the proprietary funds decrease net position in the statement of
activities, but do not appear in the governmental funds because they are not financial resources.(1,034,574)
The issuance of long-term debt provides current financial resources to governmental funds, while
the repayment of principal of long-term debt consumes the current financial resources of
governmental funds. Neither transaction, however, has any effect on net position.
Long-term debt issued(10,016,248)
Principal repayments3,025,000
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.(79,541)
Contributions to the Fire Relief Association Pension are reported as expenses in the fund
financial statements. In the statement of activities, however, all facets of the pension plan
are taken into account and when considering things such as investment return, changes in
assumptions, and plan performance differing from expectations, pension expense related to
this retirement plan for the year was reported at the following amount.100,660
Certain revenues are recognized as soon as they are earned. Under the modified accrual
basis of accounting, certain revenues cannot be recognized until they are available to
liquidate liabilities of the current period.
Property taxes205,827
Tax increments136,169
Special assessments346,883
Interest on notes receivable (forgiven)(150,600)
Intergovernmental1,621,818
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.(414,523)
Change in net position - governmental activitie$3,931,036
s
The notes to the financial statements are an integral part of this statement.
38
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND - STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
REVENUES
Property taxes$ 14,871,533$ 14,871,533$ 14,456,614$ (414,919)
Lodging taxes 880,000 880,000 1,075,425 195,425
Licenses and permits 728,115 728,115 859,534 131,419
Intergovernmental 1,362,941 1,362,941 1,410,695 47,754
Charges for services 855,000 855,000 749,569 (105,431)
Special assessments 85,000 85,000 148,234 63,234
Fines and forfeits 316,500 316,500 268,116 (48,384)
Investment earnings (net of market value adjustment) 46,787 46,787 62,276 15,489
Miscellaneous 106,725 106,725 142,800 36,075
Total revenues 19,252,601 19,252,601 19,173,263 (79,338)
EXPENDITURES
Current:
General government3,028,435 3,028,435 2,760,756 267,679
Public safety10,329,293 10,329,293 9,785,487 543,806
Public works2,092,330 2,092,330 1,876,899 215,431
Community services161,000 161,000 135,604 25,396
Parks and recreation2,625,401 2,625,401 2,488,990 136,411
Economic development418,000 418,000 510,827 (92,827)
Nondepartmental404,253 404,253 450,129 (45,876)
Capital outlay:
General government22,500 22,500 8,253 14,247
Public safety107,000 107,000 23,690 83,310
Public works4,000 4,000 3,893 107
Parks and recreation23,000 23,000 3,270 19,730
Total expenditures19,215,212 19,215,212 18,047,798 1,167,414
Excess (deficiency) of revenues
over (under) expenditures 37,389 37,389 1,125,465 1,088,076
)
OTHER FINANCING SOURCES (USES
Transfers in 150,000 150,000 201,684 51,684
Transfers out (187,389) (187,389) (1,176,313) (988,924)
Total other financing sources (uses) (37,389) (37,389) (974,629) (937,240)
Net change in fund balance - 150,836- 150,836
Fund balance - January 1 11,020,081 11,020,081 11,020,081 -
Fund balance - December 31$11,020,081$11,020,081$ 11,170,917$150,836
The notes to the financial statements are an integral part of this statement.
39
CITY OF BROOKLYN CENTER, MINNESOTA
TAX INCREMENT DISTRICT NO. 3 - STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
REVENUES
Tax increments2,976,947$ 2,976,947$ 2,953,728$ (23,219)$
Charges for services- - 177,213 177,213
Investment earnings (net of market value adjustment)9,939 9,939 19,833 9,894
Miscellaneous- - 21,874 21,874
Total revenues2,986,886 2,986,886 3,172,648 185,762
EXPENDITURES
Current:
Economic development8,000 8,000 1,483,476 (1,475,476)
Excess of revenues
over expenditures2,978,886 2,978,886 1,689,172 (1,289,714)
OTHER FINANCING SOURCES (USES)
Sale of capital assets- - 4,820 4,820
Transfers out(2,497,331) (2,497,331) (2,395,982) 101,349
Total other financing sources (uses)(2,497,331) (2,497,331) (2,391,162) 106,169
Net change in fund balance481,555 481,555 (701,990) (1,183,545)
Fund balance - January 1 17,898,749 17,898,749 17,898,749 -
Fund balance - December 3118,380,304$ 18,380,304$ 17,196,759$ (1,183,545)$
The notes to the financial statements are an integral part of this statement.
40
CITY OF BROOKLYN CENTER, MINNESOTA
TAX INCREMENT DISTRICT NO. 5
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
REVENUES
Tax increments435,437$ 435,437$ 353,417$ (82,020)$
Investment earnings (net of market value adjustment)816 816 458 (358)
Total revenues436,253 436,253 353,875 (82,378)
EXPENDITURES
Current:
Economic development:
Services and other charges400,469 400,469 1,295,482 (895,013)
Excess (deficiency) of revenues
over (under) expenditures35,784 35,784 (941,607) (977,391)
OTHER FINANCING SOURCES (USES)
Transfers out(34,968) (34,968) - 34,968
Net change in fund balance816 816 (941,607) (942,423)
Fund balance - January 1(1,299,859) (1,299,859) (1,299,859) -
Fund balance - December 31(1,299,043)$ (1,299,043)$ (2,241,466)$ (942,423)$
The notes to the financial statements are an integral part of this statement.
41
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2015
Business-Type Activities
MunicipalGolfEarle BrownWater
LiquorCourseHeritage CenterUtility
ASSETS
Current assets:
Cash and cash equivalents1,916,501$ -$ 2,405,680$ 1,265,194$
Receivables:
Accounts - net9,280 - 247,236 679,158
Special assessments- - - 475,127
Due from other governments- - - -
Prepaid items28,386 - 17,102 1,834
Inventories706,220 1,930 32,275 44,742
Total current assets2,660,387 1,930 2,702,293 2,466,055
Noncurrent assets:
Capital assets:
Land- 1,390,402 1,493,300 20,734
Easements- - - -
Land improvements- 65,637 377,254 -
Buildings and improvements192,771 664,322 12,502,163 3,033,212
Machinery and equipment261,786 11,160 386,309 128,668
Street light systems- - - -
Mains and lines- - - 22,395,083
Construction in progress- - - 21,555,709
Total capital assets454,557 2,131,521 14,759,026 47,133,406
Less: accumulated depreciation(324,890) (455,365) (11,340,828) (16,029,730)
Net capital assets129,667 1,676,156 3,418,198 31,103,676
Total noncurrent assets129,667 1,676,156 3,418,19831,103,676
Total assets2,790,0541,678,0866,120,49133,569,731
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources- - - -
LIABILITIES
Current liabilities:
Accounts payable149,413 700 66,691 918,859
Contracts payable- - 161,202 915,626
Accrued salaries and wages8,037 1,115 12,811 6,151
Accrued interest payable- - - 70,048
Due to other funds- 144,982 - -
Due to other governments55,021 - 22,740 4,023
Deposits payable- - 407,921 5,625
Unearned revenue3,472 - 1,600 212,891
Notes payable- - - 944,000
Bonds payable- - - 105,000
Compensated absences payable- - - -
Total current liabilities215,943 146,797 672,965 3,182,223
Noncurrent liabilities:
Notes payable- - - 16,601,158
Bonds payable- - - 1,140,000
Advances from other funds- 792,488 - -
Compensated absences payable- - - -
Net OPEB obligation- - - -
---
Net pension liability-
Total noncurrent liabilities-792,488 17,741,158-
Total liabilities215,943939,285672,96520,923,381
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources----
NET POSITION
Net investment in capital assets129,6671,676,1563,418,19813,558,518
Unrestricted2,444,444(937,355)2,029,328(912,168)
Total net position$2,574,111$738,801$5,447,526$12,646,350
Net position from this Statement
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
The notes to the financial statements are an integral part of this statement.
42
Governmenta
l
Business-Type ActivitiesActivities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal
UtilityUtilityUtilityUtilityEnterpriseService
$ 3,337,8323,061,120$ 405,103$ 41,420$ 12,432,850$ 6,230,655$
349,633943,513 100,526 61,616 2,390,962 35,557
-- - - 475,127 -
-- - - - 19,270
-185,353 - - 232,675 -
-- - - 785,167 16,795
3,687,4654,189,986 505,629 103,036 16,316,781 6,302,277
287,1583,389 - - 3,194,983 -
10,28520,335 - - 30,620 -
-- - - 442,891 166,108
-2,571,416 - - 18,963,884 -
24,587179,130 - - 991,640 9,181,885
-- 832,789 - 832,789 -
27,860,19121,543,362 - - 71,798,636 -
1,664,6512,383,10733,137-25,636,604-
25,982,28330,565,328865,926 121,892,047-9,347,993
(13,761,932)(13,211,042)(198,111) (55,321,898)-(5,456,463)
12,220,35117,354,286667,815 66,570,149-3,891,530
12,220,35117,354,286667,815 66,570,149-3,891,530
16,410,33721,041,7511,173,444103,03682,886,93010,193,807
---- 2,207,122-
17,980142,99824,2673011,321,20934,163
18,31223,584- 1,118,724--
2,2903,127--33,5314,138
22,830---92,878-
--- 144,982--
705---82,48948
--- 413,546--
217,963-
----
----944,000-
-35,000 - - 140,000 -
-- - - - 125,485
169,70997,117 24,267 301 4,509,322 163,834
-- - - 16,601,158 -
-2,203,752 - - 3,343,752 -
-- - - 792,488 -
-- - - - 1,129,366
-- - - - 710,605
-- - - - 11,509,476
-2,203,752 - - 20,737,398 13,349,447
169,7092,300,869 24,267 301 25,246,720 13,513,281
-- - - - 1,660,956
17,354,28610,396,599 667,815 - 47,201,239 3,891,530
3,517,756481,362102,73510,438,971(6,664,838)
3,712,869
$14,109,468$20,872,042$1,149,177$102,735$57,640,210$(2,773,308)
$57,640,210
(1,986,341)
$55,653,869
43
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Business-Type Activities
MunicipalGolfEarle BrownWater
LiquorCourseHeritage CenterUtility
OPERATING REVENUES
Sales and user fees$ 6,056,668$ 208,225$ 4,487,260$ 2,573,493
Cost of sales 4,431,501 2,033,464- -
Total operating revenues 1,625,167 208,225 2,453,796 2,573,493
S
OPERATING EXPENSE
Personal services 653,553 137,679 1,025,875 521,394
Supplies 52,247 24,051 123,072 161,757
Other services 270,606 66,691 697,269 449,361
Insurance 15,741 4,135 37,852 26,392
Utilities 46,384 16,334 185,406 145,496
Rent 311,553 - - -
Depreciation 16,966 18,737 620,249 703,933
Total operating expenses 1,367,050 267,627 2,689,723 2,008,333
Operating income (loss) 258,117 (59,402) (235,927) 565,160
)
NONOPERATING REVENUES (EXPENSES
Intergovernmental - 6,746 - 17,832
Investment earnings (net of market value adjustment) 15,006 - 16,829 30,423
Special assessments - - - 39,887
Gain on sale of capital assets - - - -
Loss on disposal of capital assets - - - -
Other revenue (expense) 5,012 121 161,902 27,285
Interest and fiscal agent fees - - (154,702)-
Total nonoperating revenues (expenses) 20,018 6,867 178,731 (39,275)
Income (loss) before transfers 278,135 (52,535) (57,196) 525,885
Capital contributions from other funds - - - -
Transfers in - 40,000 - -
Transfers out (216,455) (14,857)- -
Change in net position 61,680 (12,535) (72,053) 525,885
Net position - January 1 2,512,431 751,336 5,519,579 12,120,465
Change in Accounting Principle - Pension - - - -
Net position - January 1, restated 2,512,431 751,336 5,519,579 12,120,465
Net position - December 31$2,574,111$738,801$ 5,447,526$12,646,350
Change in net position from this Statement
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net position of business-type activities
The notes to the financial statements are an integral part of this statement.
44
Governmental
Business-Type Activities
Activities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal
UtilityUtilityUtilityUtilityEnterpriseService
$ 1,635,5554,093,725$ 455,358$ 315,434$ 19,825,718$ 3,022,951$
-- - - 6,464,965 -
1,635,5554,093,725 455,358 315,434 13,360,753 3,022,951
193,795203,365 - - 2,735,661 2,279,251
45,00553,260 2,439 25 461,856 405,086
527,5062,547,147 57,143 291,102 4,906,825 160,554
3,24232,896 1,363 1,155 122,776 56,693
-36,826 167,149 - 597,595 895
-- - - 311,553 -
1,106,276783,500 53,567 - 3,303,228 761,629
1,875,8243,656,994 281,661 292,282 12,439,494 3,664,108
436,731 (240,269) 173,697 23,152 921,259 (641,157)
5,944 - - - 30,522 48,746
26,688 35,849 2,586 305 127,686 51,194
-- - - 39,887 -
- - - - - 27,800
- - - - (18,175)-
1,292 100 8,900 204,612- 40,121
(29,362) - - (184,064)- -
4,562 35,949 11,486 305 218,643 149,686
441,293 (204,320) 185,183 23,457 1,139,902 (491,471)
1,034,574- - 1,034,574- -
- - - - 40,000 7,389
(45,000)- - (276,312)- -
441,293 785,254 185,183 23,457 1,938,164 (484,082)
13,668,175 20,086,788 963,994 79,278 55,702,046 8,401,896
- - - - (10,691,122)-
13,668,175 20,086,788 963,994 79,278 55,702,046 (2,289,226)
$102,735$57,640,210$(2,773,308)
$ 14,109,468$ 20,872,042$1,149,177
$1,938,164
(69,559)
$1,868,605
45
CITY OF BROOKLYN CENTER, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2015
Business-Type Activities
MunicipalGolfEarle BrownWater
LiquorCourseHeritage CenterUtility
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users6,055,858$ 208,225$ 4,458,710$ 2,411,064$
Receipts from interfund services provided- - - -
Other operating receipts5,012 5,681 161,902 27,285
Payments to suppliers(5,116,858) (111,695) (3,001,858) (653,848)
Payments to employees(674,043) (140,129) (1,055,639) (536,876)
Net cash flows provided (used) by operating activities269,969 (37,918) 563,115 1,247,625
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in (operating)- 40,000 - -
Interfund payable (operating)- (8,828) - -
Special assessments- - - 50,565
Intergovernmental grants- 6,746 - -
Transfers out(216,455) - (14,857) -
Net cash flows provided (used) by noncapital financing activities(216,455) 37,918 (14,857) 50,565
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets(10,050) - (111,083) (16,375,990)
Intergovernmental grants- - - 17,832
Interfund payable (capital)- - - (3,542,769)
Transfers in (capital)- - - -
Principal paid on revenue bonds- - - (1,350,000)
Principal paid on revenue notes- - - (15,352)
Interest paid on capital debt- - - (108,377)
Proceeds from g.o. revenue notes- - 17,560,510-
Proceeds from g.o. revenue bonds (net) - - - -
Proceeds from refunding bonds issued (net) - - 1,245,000-
Proceeds from sale of assets - - - -
Net cash flows provided (used) by capital and related financing activities(10,050) (111,083)- (2,569,146)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 15,006 - 16,829 30,423
Net increase (decrease) in cash and cash equivalents 58,470 454,004- (1,240,533)
Cash and cash equivalents - January 1 1,858,031 1,951,676- 2,505,727
Cash and cash equivalents - December 31$1,916,501$ 2,405,680-$$ 1,265,194
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ 258,117$ (59,402)$ (235,927)$ 565,160
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Depreciation 16,966 18,737 620,249 703,933
Other income (expense) related to operations 5,012 121 161,902 27,285
(Increase) decrease in assets:
Accounts receivable (1,500) - (28,550) (151,646)
Due from other governments - 5,560 - -
Prepaid items (729) - (8,285) (1,834)
Inventories (31,153) (341) (1,082) (9,400)
(Increase) decrease in deferred outflows of resources:
Deferred outflows for pension - - - -
Increase (decrease) in liabilities
Accounts payable 43,056 (143) 84,572 140,392
Net pension liability - - --
Accrued salaries and wages(20,490) (2,450) (29,764) (15,482)
Unearned revenue 690 - - (10,783)
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - - - -
Net cash flows provided (used) by operating activitie$269,969$(37,918)$563,115$ 1,247,625
s
NONCASH FINANCING ACTIVITIES
Acquisitions of capital assets on account-$ -$ -$ 1,659,503$
Capital assets contributed from other funds-$ -$ -$ -$
Capital asset trade-ins-$ -$ -$ -$
Grants deposited with pension plan-$ -$ -$ -$
Change in Accounting Principle for pensions-$ -$ -$ -$
The notes to the financial statements are an integral part of this statement.
46
Governmental
Business-Type ActivitiesActivities-
Sanitary SewerStorm DrainageStreet LightRecyclingTotalInternal
UtilityUtilityUtilityUtilityEnterpriseService
$ 1,637,8384,063,240$ 456,600$ 318,513$ 19,610,048$ -$
-- - - - 2,986,442
1001,292 8,900 - 210,172 40,121
(482,240)(2,717,233) (206,066) (292,585) (12,582,383) (538,525)
(199,308)(205,119) - - (2,811,114) (1,923,169)
956,3901,142,180 259,434 25,928 4,426,723 564,869
-- - - 40,000 -
-- - - (8,828) -
-- - - 50,565 -
-- - - 6,746 8,606
(45,000)- - - (276,312) -
(45,000)- - - (187,829) 8,606
(1,596,810)(1,643,462) (33,138) - (19,770,533) (1,082,843)
-5,944 - - 23,776 -
-- - (3,542,769)- -
- - - - - 7,389
(450,000) - - (1,800,000)- -
- - - - (15,352) -
(49,717) - - (158,094)- -
- - - 17,560,510- -
1,852,676 - - 1,852,676- -
421,353 - - 1,666,353- -
- - - - - 33,978
136,794 (1,596,810) (33,138) (4,183,433)- (1,041,476)
26,688 35,849 2,586 305 127,686 51,194
1,305,662 (649,571) 228,882 26,233 183,147 (416,807)
1,755,458 3,987,403 176,221 15,187 12,249,703 6,647,462
$ 3,061,120$ 3,337,832$ 405,103$ 41,420$12,432,850$6,230,655
$ 436,731$ (240,269)$173,697$ 921,259$ (641,157)
$23,152
783,500 1,106,276 53,567 3,303,228- 761,629
1,292 100 8,900 204,612- 80,261
(30,485) 2,283 1,242 3,079 (205,577) (36,509)
- - - - 5,560
(10,046) - - - (20,894) -
- - - - (41,976) 6,742
- - - - (2,207,122)-
(37,058) 93,513 22,028 (303) 346,057 77,961
- - - - - 818,354
(1,754) (5,513) - - (75,453) 43,754
- - - - (10,093) -
- - - - 1,660,956-
$ 1,142,180$ 956,390$ 259,434$ 25,928$4,426,723$564,869
$ 18,364$ 23,584$ -$ 1,701,451-$ $ 38,670
$-$ 1,034,574$ -$ 1,034,574-$ $ -
$ -$ -$ -$ -$ -$ (24,353)
$ -$ -$ -$ -$ -$ 40,140
$ -$ -$ -$ -$ (10,691,122)-$
47
48
bƚƷĻƭƷƚ
CźƓğƓĭźğƌ{ƷğƷĻƒĻƓƷƭ
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The City of Brooklyn Center was incorporated in 1911 and has operated under a Council/Manager form of government since
the adoption of the City charter in 1966. The governing body consists of a Mayor and four City Council members. elected
at-large to serve four-year staggered terms. The City provides a full range of municipal services to its citizens, including public
safety (police and fire protection), highways and streets, parks and recreation, public improvements, planning and inspections,
economic development, sanitary and storm sewer, water, and general administrative services.
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City have been prepared in accordance with accounting principles generally accepted in
the United States of America (GAAP), as applied to governmental units by the Governmental Accounting Standards
Board (GASB).
The City’s significant accounting policies are described below.
A. REPORTING ENTITY
The City includes all funds, organizations, institutions, agencies, departments, boards, and offices that are not legally separate
from the City. Component units are legally separate organizations for which the elected officials of the City are financially
accountable and are included within the basic financial statements of the City because of the significance of their operational
or financial relationships with the City.
The City is considered financially accountable for a component unit if it appoints a voting majority of the organization’s
governing body and is able to impose its will on the organization by significantly influencing the programs, projects, activities,
or level of services performed or provided by the organization, or there is a potential for the organization to provide specific
financial benefits to, or impose specific financial burdens on, the City.
Blended component units, although legally separate, are, in substance, part of the government’s operations. A blended
component unit is reported as if it were a fund of the City throughout the year. It is included at both the government-wide
and fund financial reporting levels.
A description of the City’s blended component units follows:
City of Brooklyn Center Housing and Redevelopment Authority (HRA) - The City Council serves as the Board of Directors
for the HRA, with the power to levy taxes and enter into contracts. 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,
with the power to issue bonds and enter into contracts. The council reviews and approves major community development
improvement activities. City general obligation tax increment financing bonds are issued to finance EDA activities. The
EDA is reported as a Special Revenue fund. The EDA does not issue separate financial statements. Financial information
may be obtained at the City’s offices.
49
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information
Governmental activities
on all activities of the primary government and its component units. , which normally are supported by
business-type activities
taxes and intergovernmental revenues, are reported separately from , which rely to a significant extent
on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by
Direct expensesProgram
program revenues. are those that are clearly identifiable with a specific function or segment.
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
general revenues.
among program revenues are reported instead as
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds
and major individual enterprise funds are reported as separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
accrual
The government-wide financial statements are reported using the economic resources measurement focus and the
basis of accounting
, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments
are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting
. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available
if they are collected within 60 days of the end of the current fiscal year. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal year. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and
judgments, compensated absences, net pension liabilities, and OPEB are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current
fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year.
Only the portion of special assessments receivable due within the current fiscal year is considered to be susceptible to accrual
as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
50
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The City reports the following major governmental funds:
General Fund
This is the City’s primary operating fund. It accounts for all financial resources of the general government,
except those required to be accounted for in another fund. Most of the current day-to-day operations of the
governmental units are financed from this fund.
Tax Increment District No. 3 Special Revenue Fund
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities throughout the City. This
fund also provides the resources to repay the debt service on bonds issued to finance these redevelopment
activities.
Tax Increment District No. 5 Special Revenue Fund
This fund was established to account for the collection of tax increment generated revenues for parcels within
the District. These funds are used to finance the various redevelopment activities within the District, which
consisted of the redevelopment of the former Brookdale mall site, which is now called Shingle Creek Crossing.
Debt Service Fund
This fund is used to account for the collection of property taxes, special assessments and other resources
which are used to repay the principal and interest on debt issued for various improvements in the City.
Municipal State-Aid for Construction Capital Project Fund
This fund was established to account for the state allotment of construction and maintenance aid. The source
of the State funding is provided for through the collection of gasoline taxes. The funds accumulated must be
used on transportation related construction and maintenance projects.
Capital Improvements Capital Project Fund
This fund was established to provide funds and to account for the expenditure of such funds, for major capital
outlays. The accumulation of funds to provide for such outlays is an attempt to reduce future debt issuance.
The financing sources of the fund primarily consist of transfers from other funds.
Infrastructure Construction Capital Project Fund
This fund was established to account for the resources and expenditures required for the acquisition and
construction of capital facilities or improvements financed wholly or in part by special assessments levied
against benefited properties.
51
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The government reports the following major enterprise funds:
Municipal Liquor Fund
The fund accounts for the operations of the City’s municipal off-sale liquor stores.
Golf Course Fund
The fund accounts for operations of Centerbrook Golf Course, a 9 hole executive golf course owned by
the City.
Earle Brown Heritage Center Fund
The Earle Brown Heritage Center is a pioneer farmstead that has been historically preserved and restored
as a modern multipurpose facility. Its convention center can host conferences, trade shows and concerts.
Water Utility Fund
The fund accounts for pumping, treatment and distribution of water to customers. Administration, wells,
water storage, and distribution are included.
Sanitary Sewer Utility Fund
The fund accounts for the collection and pumping of sanitary sewage through a system of sewer lines and lift
stations. Sewage is treated by the Metropolitan Council Environmental Services whose fees represent about
60% of this fund’s operating expenses.
Storm Drainage Utility Fund
The fund accounts for the collection and treatment of surface runoff water that does not require sanitary
wastewater treatment. It incorporates not only the storm sewer collection system, but also structures such as
holding ponds and facilities to improve water quality. Fees are based upon the quantity of water running off a
property and vary with both size and absorption characteristics of the parcel.
Street Light Utility Fund
The fund accounts for the electrical service, maintenance, repair and replacement of lights owned by the City
as well as those lights owned by Xcel Energy.
Recycling Utility Fund
The fund accounts for the contracted services to provide a City wide recycling program.
Additionally, the City reports the following fund type:
Internal Service Funds
Account for compensated absences, health care insurance benefits for retired employees, pension liabilities,
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.
52
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
operatingnon-operating
Proprietary funds distinguish revenues and expenses from items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s
principal ongoing operations. The principal operating revenues of the enterprise funds and internal service funds are charges
to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
D. CASH AND INVESTMENTS
The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash
equivalents. All of the cash and investments allocated to the proprietary funds have original maturities of 90 days or less.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized
investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds.
The City’s investment policy authorizes the City to invest in the following:
a) Securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its
instrumentalities, or organizations created by an act of Congress, including governmental bonds, notes, bills, mortgages
(excluding high-risk mortgage-backed securities), and other securities.
b)Commercial paper issued by U.S. corporations or their Canadian subsidiaries that is rated in the highest quality by at least
two nationally recognized rating agencies and matures in 270 days or less.
c)Time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of U.S. banks.
d)Repurchase agreements and reverse repurchase agreements with financial institutions identified by Minnesota Statutes
Chapter 118A.
e)Securities lending agreements may be entered into with financial institutions identified by Minnesota Statutes
Chapter 118A.
f)Minnesota joint powers investment trusts may be entered into with trusts identified by Minnesota Statutes Chapter 118A.
g)Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of
short term securities permitted by Minnesota Statutes 118A.
h)Bonds of the City of Brooklyn Center issued in prior years, may be redeemed at current market price, which may include a
premium, prior to maturing using surplus funds of the debt service fund set up for that issue.
Certain proceeds of the City's 2015B Tax Increment Refunding Bonds, are classified as cash with fiscal agent on the balance
sheet because they are maintained in separate bank accounts and their use is limited by applicable bond covenants.
53
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Investments are reported at fair value, based on quoted market prices as of the balance sheet date, except for investments in
2a7-like external investment pools, which are stated at amortized cost. Adjustments necessary to record investments at fair
value are recorded in the operating statement as increases or decreases in investment earnings. Investment income on
commingled funds is allocated monthly, based on month-end balances.
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. Short-term interfund loans are classified as “due to/from other funds.” All short-term interfund receivables and
payables at December 31, 2015 are planned to be eliminated in 2016. Long-term interfund loans are classified as “advances
to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as "internal balances".
Advances between funds, as reported in the fund financial statements, are offset by restricted or committed fund balance in
applicable governmental funds. This classification is based on the restraint that will be placed on the advanced funds when
they are returned to the lending fund.
All miscellaneous accounts receivable and trade receivables, other than utilities, are presented net of an allowance for doubtful
accounts. All utility trade receivables are reported at gross because it is the City’s policy to certify delinquent account
balances as special assessments. The City expects to make full collection of all property tax and special assessment
receivables, so no allowance is considered necessary.
Property tax levies are submitted to the County in December each year. The County allocates these levies across taxable
properties in the City based on valuations certified in the prior year. The County collects these levies and distributes the City’s
proceeds in June and December of the fiscal year. These taxes are reported as general revenues in the government-wide
financial statements in the year levied. Unpaid taxes at December 31 become liens on the respective property and are
classified as delinquent receivables and are fully offset by a deferred inflow of resources in the fund financial statements.
Delinquent taxes receivable includes the past six years of uncollected taxes.
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivables upon certification to the County. Governmental special assessments have been offset
by a deferred inflow of resources for collections not received within 60 days after year end in the fund financial statements.
54
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
F. INVENTORIES AND PREPAID ITEMS
Inventories in the governmental funds are reported using the consumption method and valued at cost, using the first in/first out
(FIFO) method. Inventories in the proprietary funds are valued at cost, using the weighted average method in the Municipal
Liquor and Earle Brown Heritage Center Funds and the FIFO method in all other funds.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both
government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as
expenditures/expenses at the time of consumption.
G. ASSETS HELD FOR RESALE
Assets held for resale represent various property purchases made by the City with the intent to sell in order to increase tax
base or to attract new businesses. These assets are stated at the lower of cost or net realizable value. During the year ended
December 31, 2015 management has reviewed the cost value reported for these assets and has indicated the properties are
fairly presented for financial reporting purposes.
H. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items), and intangible assets such as easements and computer software, are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an initial, individual cost in excess of the amounts in the table below and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
Infrastructure
$ 250,000
Buildings and Building Improvements
50,000
Land Improvements
25,000
Heavy Equipment
25,000
Furniture and furnishings
10,000
Motorized vehicles
10,000
Technology equipment
10,000
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not
capitalized.
55
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
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, 2015 no interest was capitalized in connection with construction in progress.
Capital assets of the City, as well as the component units, are depreciated using the straight line method over the following
estimated useful lives:
Easements - temporary5years
Land improvements25years
Buildings and structures25years
Water and sewer mains and lines, wells and storage
tanks, sewer lift stations25years
Infrastructure25years
Street light systems15years
Machinery and equipment3 - 15years
I. DEFERRED OUTFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The City has only one item that qualifies for reporting in the category. Accordingly, the item, deferred pension
resources, is reported only in the statements of net position. This item results from actuarial calculations and current year
pension contributions made subsequent to the measurement date.
J. PENSIONS
For purposes of measuring the net pension liability/asset, deferred outflows of resources, deferred inflows of resources, and
pension expense, information about the fiduciary net position of the applicable pension and additions to or deductions from
the pension plan's fiduciary net position have been determined on the same basis as they are reported by the plan except that
PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and
benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
K. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, statements of financial position or balance sheets will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future
periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of items,
which arise under a modified accrual basis of accounting, which qualify for reporting in this category. One item, unavailable
revenue, is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from
sources such as: property taxes, tax increments, special assessments and other receivables not collected within 60 days of
year-end. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.
The other item results from actuarial calculations related to the City's pension obligations.
56
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
L. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and
vested sick leave pay is accrued in the Public Employees Compensated Absences internal service fund. In accordance with
the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, a liability is
recognized for that portion of accumulating sick leave benefits that is vested.
M. POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Under Minnesota Statute 471.61, subdivision 2(b), public employers must allow retirees and their dependents to continue
coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) retirees must be receiving
(or eligible to receive) an annuity from a Minnesota public pension plan; 2) coverage must continue in group plan until age 65
and pay no more than the group premium; and 3) retirees may obtain dependent coverage immediately before retirement. All
premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB Statement
45, at January 1, 2014. The liability is accrued in the Public Employees Retirement internal service fund.
N. LONG TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or
proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are immaterial and
are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance
costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received
on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
O. FUND EQUITY
Fund equity in the fund financial statements is classified as fund balance for governmental funds and net position for
proprietary funds. Fund equity in the government-wide financial statements is classified as net position for both governmental
and business-type activities.
Fund Balance
– In the fund financial statements, governmental funds report fund balance in classifications that
disclose restraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable
– consists of amounts that are not in spendable form or are required to be maintained intact.
Restricted
– consists of amounts related to externally imposed constraints established by creditors, grantors or
contributors; or constraints imposed by state statutory provisions.
Committed
– consists of internally imposed constraints. These constraints are imposed by formal action (resolution)
of the City Council, which is the highest level of decision making authority.
Assigned
– consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the
City’s intended use. These constraints are established by the City Council or, pursuant to council resolution, the City
Manager or the Director of Finance.
57
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Unassigned
– is the residual classification for the general fund and also reflects negative residual amounts in other
funds.
When both restricted and unrestricted fund balances are available for an allowable use, it is the City’s policy to use restricted
resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are
available for an allowable use, it is the City’s policy to use resources in the following order; 1) committed, 2) assigned, and 3)
unassigned.
The City has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target
unassigned fund balance amount of 50-52% of the next year’s operating budget for cash flow needs (working capital). At
December 31, 2015 the unassigned fund balance of the General fund was 52% of the subsequent year’s budgeted
expenditures.
Net Position –
Net position represents the difference between assets, deferred outflows of resources, deferred inflows of
resources, and liabilities. Net position, net investment in capital assets, consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balances of any bonds used for the acquisition, construction, or improvement of
those assets. Net position is reported as restricted when there are limitations imposed on their use either through
constitutional provisions or enabling legislation, or through external restrictions imposed by creditors, grantors, or laws or
regulations of other governments. All remaining net position is reported as unrestricted.
When both restricted and unrestricted net position are available for an allowable use, it is the government’s policy to use
restricted resources first, then unrestricted resources as they are needed.
P. 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.
Q. 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.
R. NEW ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board recently approved the following statements which were not implemented in
these financial statements. The effect these standards may have on future financial statements has not been determined at
this time.
Fair Value Measurement and Application
Statement No. 72, . The primary objective of this statement is to enhance the
comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair
value using a more detailed definition of fair value and accepted valuation techniques. The provisions of this statement are
effective for periods beginning after June 15, 2015.
58
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
S. CHANGE IN ACCOUNTING PRINCIPLES
During fiscal year 2015, the City implemented several new accounting pronouncements issued by the Government Accounting
Standards Board (GASB), including Statement No. 68, Accounting and Financial Reporting for Pensions - an Amendment of
GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date - an Amendment of GASB Statement No. 68, for the year ended December 31, 2015. These standards required a
retroactive implementation which resulted in the restatement of beginning balances in the December 31, 2014 financial
statements. Changes related to these standards are reflected in the financial statements and schedules and related disclosures
are included in Note 4 and 5.
As a result of the restatement of beginning balances, the following schedule reconciles the previously reported December 31,
2014 balances to the December 31, 2015 financial statements:
GovernmentalBusiness-typeInternal
ActivitiesActivitiesService Funds
Net Position - beginning, as previously reported83,366,750$ 55,356,897$ 8,401,896$
Change in accounting principle
Net Pension Asset1,058,462 - -
Deferred outflows related to pensions656,663 66,166 564,286
Deferred inflows related to pensions(138,745) - -
Net pension liability(9,617,609) (1,637,799) (11,255,408)
Total(8,041,229) (1,571,633) (10,691,122)
Net Position - beginning, restate$ 53,785,26475,325,521$ (2,289,226)$
d
Note 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States for all
governmental funds. All annual appropriations lapse at fiscal year end.
In September, 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 30. 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.
59
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The appropriated budget is prepared by fund and department. The City Council must authorize any transfer of budgeted
amounts between departments or funds. Transfers of budgeted amounts within departments in the General Fund must be
authorized by the City Manager. The legal level of budgetary control is the department level for the General Fund and the
fund level for all other governmental funds. There were no supplemental budgetary appropriations or amendments
during the year.
For the year ended December 31, 2015 expenditures and transfers out exceeded appropriations in the following General
Fund departments and other governmental funds:
FinalExcess of
BudgetActualAppropriations
Major Funds:
General Fund:
Mayor and council122,010$ 123,085$ (1,075)$
Assessing201,100 202,443 (1,343)
Park and recreation administration219,626 221,922 (2,296)
Convention bureau418,000 510,827 (92,827)
Nondepartmental404,253 450,129 (45,876)
Transfers out187,389 1,176,313 (988,924)
Major Funds:
Special Revenue Funds:
Tax Increment District No. 32,505,331 3,879,458 (1,374,127)
Tax Increment District No. 5435,437 1,295,482 (860,045)
Debt Service Fun 3,931,9933,861,553 (70,440)
d
Capital Project Funds:
Capital Improvements956,000 4,127,671 (3,171,671)
Municipal State Aid for Construction2,670,000 2,693,830 (23,830)
Infrastructure Construction1,371,595 1,517,830 (146,235)
Nonmajor Funds:
Special Revenue Funds:
Economic Development Authorit436,9831,137,307(700,324)
y
Community Development Block Gran150,000368,841(218,841)
t
Tax Increment District No. 2 21,655-(21,655)
Tax Increment District No. 4464,683640,137(175,454)
Centennial Amphitheate588,500632,925(44,425)
r
Capital Project Funds:
Street Reconstruction2,150,0002,270,487(120,487)
60
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
B. DEFICIT FUND EQUITY
Deficit fund equity exists at December 31, 2015 in the following funds:
Unassigned deficit fund balance
Major Funds:
Tax Increment District No. 52,241,466$
Infrastructure Construction183,145
Nonmajor Funds:
Community Development Block Grant453
Unrestricted deficit net position
Major Funds:
Golf Course937,355
Water Utility912,168
Internal Service Funds:
EE Retirement Benefit144,875
Pension - GERF6,382,118
Pension - PEPFF4,581,192
The deficits are being funded through internal borrowing and will be repaid from future collections of tax increment, future
collections of special assessments, internal transfers, and future bond issuance. The Internal service deficits will
be funded through future interfund charges, state grant revenues, and employee witholdings.
Note 3 DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
In accordance with Minnesota Statutes, the City maintains deposits at only those depository banks authorized by the City
Council. All such depositories are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of
collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal
investments described in Note 1.D., as well as certain first mortgage notes, and certain other state or local government
obligations. Minnesota Statutes require that securities pledged as collateral be placed in safekeeping in a restricted account at
the Federal Reserve bank, or in an account at a trust department of a commercial bank or other financial institution that is not
owned or controlled by the financial institution furnishing the collateral.
At year-end, the City’s carrying value amount of deposits was $6,782,081 composed of bank balances of $6,782,081.
As of December 31, 2015 the City had the following investments and maturities:
Investment Maturities (in years)
Investment TypeFair ValueNo maturity< 11 - 33 - 5
Negotiable certificates of deposit$ 13,046,427$ 2,939,930-$$5,222,800$ 4,883,697
Federal agency notes14,056,277 1,004,954-11,031,8752,019,448
External investment pool - 4M Fund14,134,81614,134,816---
Money market2,069,1162,069,116---
Total Investments$43,306,636$16,203,932$3,944,884$16,254,675$ 6,903,145
61
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
As of December 31, 2015, the City had the following summary of investments related to the credit risk, par values and fair
values of securities:
% of total
Investment TypeCredit Risk (*)ParFair ValuePortfolio
Negotiable certificates of depositn/a13,067,000$ 13,046,427$ 30.13%
Federal agency notesAA14,018,115 14,056,277 32.46%
External investment pool - 4M Fundn/a14,057,174 14,134,816 32.64%
Money marketAAA2,441,867 2,069,116 4.77%
Total Investments43,584,156$ 43,306,636$ 100.00%
(*) The credit risk for the Federal Agency Notes and Money Market ratings are provided by S&P.
Cash and investments at year-end consist of the following:
Investments43,306,636$
Deposits6,782,081
Petty cash and change funds13,805
Total cash, cash equivalents, and investments50,102,522$
The deposits and investments of the City are presented in the financial statements as follows:
Statement of Net Position
Cash and investments43,320,441$
Cash with fiscal agents6,782,081
Total50,102,522$
Interest rate risk – The City’s investment policy requires interest earnings remain stable and predictable through at least the
next budget cycle and that at least 50% of the investment portfolio remain for two or more years with known interest rates.
The policy also states that the portfolio shall remain sufficiently liquid to meet all operating requirements that may be
reasonably expected.
Credit risk – The City’s investment policy restricts investment instruments to those authorized by Minnesota Statutes §118A as
listed in Note 1.D. The policy also requires that any counterparty in investment transactions be pre-qualified and approved by
the City Council and that the portfolio be diversified to limit potential losses on individual securities. As of December 31, 2015
the City’s investment in FHLMC, FNMA, FHLB and FFCB federal agency notes were rated AA by Standard & Poors
(S&P). The City’s external investment pool is with the Minnesota Municipal Money Market Fund which is regulated by
Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M fund is a 2a7-like pool and is based
on an amortized cost method that approximates fair value.
62
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Concentration of credit risk – The City’s investment policy requires that the investment portfolio be diversified to minimize
potential losses on individual securities. As of year end, the City had portfolio concentrations in excess of five percent
(excluding external investment pools) in the following federal agencies: Federal Home Loan Mortgage Corporation (10.4%),
Federal National Mortgage Association (13.9%) Federal Farm Credit Bank (4.7%) and Federal Home Loan Bank (3.5%).
Custodial credit risk – The City’s investment policy requires that securities purchased from any bank or dealer be placed with
an independent third party for custodial safekeeping. Investments in investment pools and money markets are not evidenced
by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. All of
the City’s remaining investments were held in an institutional trust under contract with the City for safekeeping services.
B. RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2015 are as follows:
DelinquentDelinquent
PropertyTaxSpecialMunicipalNotes
TaxesIncrementsAssessmentsState-AidReceivable
Major Funds:
General268,586$ -$ 129,359$ -$ -$
Tax Increment District No. 3- 89,806 - - -
Tax Increment District No. 5- 110,493 - - 279,400
Debt Service- - 2,918,888 - -
Capital Improvements9,442 - 2,036 - -
Municipal State Aid for Construction- - - 2,699,322 -
Infrastructure Construction- - 1,434,768 - -
Nonmajor Funds
Housing and Redevelopment Authority6,663 - - - -
Total284,691$ 200,299$ 4,485,051$ 2,699,322$ 279,400$
The Economic Development Authority (EDA) offers a down payment and closing cost assistance program to home buyers
purchasing foreclosed or vacant properties as their principal residence. The program offers up to a $10,000, no-interest
deferred loan that is forgivable if the borrower resides in the property for five consecutive years. As of December 31, 2015,
the balance of these loans is $513,750. There has been an allowance for doubtful accounts recorded for the same amount, as it
is fully expected that these loans will be forgiven.
63
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets, not being depreciated:
Land3,537,473$ -$ -$ 3,537,473$
Easements - perpetual88,704 - - 88,704
Construction in progress3,276,213 8,829,037 (3,094,112) 9,011,138
Total capital assets, not being depreciate 8,829,0376,902,390 (3,094,112) 12,637,315
d
Capital assets, being depreciated:
Easements - temporary22,715 - - 22,715
Buildings and improvements19,566,900 632,925 (280,291) 19,919,534
Park improvements10,500,244 - - 10,500,244
Machinery and equipment9,246,814 1,066,068 (658,634) 9,654,248
Street infrastructure42,009,818 3,036,991 - 45,046,809
Total capital assets, being depreciated81,346,491 4,735,984 (938,925) 85,143,550
Less accumulated depreciation for:
Easements - temporary16,287 4,538 - 20,825
Buildings and improvements11,847,970 725,174 (280,291) 12,292,853
Park improvements4,544,355 227,393 - 4,771,748
Machinery and equipment5,483,811 786,681 (579,412) 5,691,080
Street infrastructure16,963,881 1,507,430 - 18,471,311
Total accumulated depreciation38,856,304 3,251,216 (859,703) 41,247,817
Total capital assets being depreciated - net42,490,187 1,484,768 (79,222) 43,895,733
Governmental activities capital assets - ne$ 10,313,80549,392,577$ (3,173,334)$ 56,533,048$
t
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government71,389$
Public safety397,011
Public works1,779,286
Parks and recreation241,901
Capital assets held by the City's internal service funds are
charged to the various functions based on their usage of the assets761,629
Total depreciation expense - governmental activities3,251,216$
64
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets, not being depreciated:
Lan$ -3,194,983$ -$ 3,194,983$
d
Easements - perpetual10,285 - - 10,285
Construction in progress8,425,511 20,908,830 (3,697,737) 25,636,604
Total capital assets, not being depreciate 20,908,83011,630,779 (3,697,737) 28,841,872
d
Capital assets, being depreciated:
Easements - temporar -20,335 - 20,335
y
Land improvements442,891 - - 442,891
Buildings and improvements18,862,853 101,031 - 18,963,884
Machinery and equipmen959,66931,971 991,640-
t
Street light systems774,88657,903 832,789-
Mains and lines67,864,3893,934,247 71,798,636-
Total capital assets, being depreciate 4,125,15288,925,023 - 93,050,175
d
Less accumulated depreciation for:
Easements - temporar 4,06314,581 - 18,644
y
Land improvements246,320 16,627 - 262,947
Buildings and improvements15,555,483 738,872 (53,596) 16,240,759
Machinery and equipment661,693 56,409 - 718,102
Street light systems144,544 53,567 - 198,111
Mains and lines35,396,049 2,433,690 53,596 37,883,335
Total accumulated depreciation52,018,670 3,303,228 - 55,321,898
Total capital assets being depreciated - net36,906,353 821,924 - 37,728,277
Business-type activities capital assets - ne$ 21,730,75448,537,132$ (3,697,737)$ 66,570,149$
t
Depreciation expense was charged to functions/programs of the City as follows:
Business-type activities:
Municipal liquor$16,966
Golf course18,737
Earle Brown Heritage Center620,249
Water utility703,933
Sanitary sewer utility783,500
Storm drainage utility1,106,276
Street light utilit53,567
y
Total depreciation expense - business-type activities3,303,228$
65
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
CONSTRUCTION COMMITMENTS
At December 31, 2015 the City had construction project contracts in progress. The commitments related to remaining
contract balances are summarized as follows:
ContractRemaining
ProjectAmountCommitment
Freeway Park Area Improvements6,768,387$ 478,149$
63rd Avenue Reconstruction Project4,310,875 209,131
2014 Capital Maintenance Building Program Project3,702,259 91,500
Water Treatment Plant18,066,121 247,439
Total$ 1,026,21932,847,642$
D. INTERFUND BALANCES AND TRANSFERS
The composition of due to/from other fund balances at December 31, 2015 are as follows:
Due fromDue to
FundOther FundsOther Funds
Major Funds:
General144,982$ -$
Capital Improvements706,834 -
Municipal State Aid for Construction- 655,248
Infrastructure Construction- 51,586
Golf Course- 144,982
Total851,816$ 851,816$
Interfund due to/from balances are representative of lending/borrowing arrangements to cover deficit cash balances at the end
of the fiscal year. Balances will be paid with future operating revenues and/or interfund transfers, collections of special
assessments on benefiting property owners, and receipt of Municipal State Aid funds.
Individual fund advances to and advances from other funds at December 31, 2015 are as follows:
Advances to Advances From
FundOther FundsOther Funds
Major Funds:
Tax Increment District No. 5-$ 2,463,683$
Capital Improvements792,488 -
Golf Course- 792,488
Nonmajor Funds:
Tax Increment District No. 22,463,683 -
$ 3,256,1713,256,171$
66
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The $2,463,683 advance between the Tax Increment District No. 2 and the Tax Increment District No. 5 funds was made to
provide funding for a specific development project within the City. The financing plan adopted for the Tax Increment District
No. 5 has the repayment of principal scheduled to begin in 2024, however current cash flow projections imply a more
immediate repayment plan, beginning in 2022. The $792,488 advance between the Golf Course and Capital Improvements
fund was made for improvements to the golf course. A repayment schedule for this advance has not yet been adopted.
The composition of interfund transfers as of December 31, 2015 are as follows:
Transfer InTransfer Out
Governmental Funds:
Major Funds:
General201,684$ 1,176,313$
Tax Increment District No. 3- 2,395,982
Debt Service2,395,982 -
Capital Improvements1,125,216 264,319
Nonmajor Funds:
Housing and Redevelopment Authority- 274,363
Economic Development Authority274,363 -
City Initiatives Grant Fund- 13,584
Centennial Amphitheater309,319 -
Community Development Block Grant- 188,100
Technolog235,020-
y
Total governmental funds4,541,5844,312,661
Proprietary Funds:
Major Funds:
Municipal Liquor 216,455-
Golf Course40,000-
Earle Brown Heritage Center 14,857-
Storm Drainage Utility 45,000-
Governmental activities: Internal Service7,389-
Total proprietary funds47,389276,312
Total all funds$4,588,973$4,588,973
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 2015, the following
non-routine transfers were made between funds:
•
The General fund transferred $908,761, and the Municipal Liquor fund transferred $216,455 to the Capital Improvements
fund in accordance with the City's Capital Project Funding policy.
67
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
E. OPERATING LEASES
The City has leased a portion of the police second floor expansion area to the Local Government Information Systems
Association (LOGIS) as a backup computer facility. The lease has a term of five years, commencing on August 1, 2011 and
calls for monthly lease payments based on square-footage. Lease revenue for the year ended December 31, 2015 was
$13,200. Future minimum lease revenues under the current agreement is as follows:
YearTotal
EndingMinimum Rents
20167,700$
The City leases space for its municipal liquor stores. The leases are ten-year leases and began in 2010 and 2013. The leases
provide for a minimum monthly base rent payment, plus a pro-rata share of common area expenses. Additional lease payments
are required if agreed-upon revenue thresholds are attained. These leases may be cancelled at the City’s option if the City
ceases liquor operations. Total rental expense under the lease agreements for the year ended December 31, 2015 was
$311,553. Future minimum base rent payments under the current agreements are as follows:
YearTotal
EndingMinimum Rents
2016234,888$
2017234,888
2018234,888
2019234,888
2020164,124
2021 - 2023280,080
$1,383,756
The City is the lessor in an operating lease for a building being used for a sit-down restaurant. The lease was originally signed
in 2011 with a ten year term with an option to extend for an additional five years. For the year ended 2015, the City received
$177,213 in rental revenue. Future minimum base rent revenues under the current agreement are as follows:
YearTotal
EndingMinimum Rents
201667,838$
201784,378
201892,816
2019102,942
2020112,048
202196,190
$556,212
68
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
F. LONG-TERM DEBT
GOVERNMENTAL ACTIVITIES
The City issued general obligation improvement bonds to provide funds for the construction of major capital facilities and
construction of infrastructure. These bonds are reported in the governmental activities of the City.
The City issued general obligation tax increment bonds to finance various redevelopment projects and redevelopment property
acquisitions within the City. These bonds are reported in the governmental activities of the City.
Final
InterestMaturityOriginalPayable
RatesDateDateIssue12-31-15
G.O. Tax Increment Bonds:
Taxable Tax Increment Bonds of 2004D4.75 - 5.13%12/01/200402/01/202017,245,000$ 8,120,000$
Taxable Tax Increment Bonds of 2008A3.00 - 5.30%05/01/200802/01/20184,335,000 375,000
Taxable Tax Increment Bonds of 2013A2.00 - 3.25%12/19/201302/01/20226,040,000 5,790,000
Taxable Tax Increment Refunding
Bonds of 2015B3.00%07/09/201502/01/20206,600,000 6,600,000
Total G.O. Tax Increment Bonds34,220,000 20,885,000
G.O. Improvement Bonds:
Improvement Bonds, 2006A3.55 - 3.80%12/15/200602/01/20171,460,000 195,000
Improvement Bonds, 2008B3.25 - 4.25%12/15/200802/01/20192,390,000 865,000
Improvement Bonds, 2013B3.00%12/19/201302/01/20244,920,000 4,115,000
Improvement Bonds, 2015A2.00 - 2.50%07/09/201502/01/20263,416,248 3,416,248
Total G.O. Improvement Bonds12,186,248 8,591,248
Total - bonded indebtedness46,406,248$ 29,476,248
Other Liabilities:
Compensated absences payable1,254,851
Net pension liabilit11,509,476
y
Net OPEB obligation710,605
Total governmental activities$42,951,180
69
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
All long-term bonded indebtedness outstanding at December 31, 2015 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 taxes or special assessments at the time a debt service payment is due, the City must provide
resources to cover the deficiency until other resources are available. At the end of the current year, there are $11,753,632 of
assets accumulated in the debt service funds for future debt service. Included within those accumulated assets, there was
$6,782,081 held by a fiscal agent and there was a combined $2,923,530 of delinquent property taxes and special assessments
receivable.
Annual debt service requirements to maturity for governmental activities long-term debt are as follows:
Governmental Activities
Year EndingG.O. Tax Increment BondsG.O. Improvement Bonds
December 31PrincipalInterestPrincipalInterest
2016$ 601,3888,505,000$ 885,000$ 228,423$
2017 350,4751,960,000 1,152,497 191,921
2018 289,4502,005,000 1,075,978 159,029
2019 227,7132,015,000 1,022,497 128,522
2020 166,5132,065,000 870,757 102,464
2021 - 2025 139,1064,335,000 3,225,943 213,923
2026 -- 358,576 4,482
Total$ 1,774,64520,885,000$ 8,591,248$ 1,028,764$
BUSINESS-TYPE ACTIVITIES
The City issued general obligation revenue bonds to finance the metering of all City connected water and sewer utility services
in 2010 which were refunded in 2015. The City also issued general obligation revenue bonds in 2015 for utility portions of
infrastructure improvement projects and a Revenue Note financed by the MN Public Facilities Authority Drinking Water State
Revolving Fund for the construction of a new water treatment plant authorized in the amount of $19,662,352. As of December
31, 2015, only $17,560,510 of the Revenue Note has been drawn down. These bonds are reported in the business-type
activities of the City.
Final
InterestMaturityOriginalPayable
RatesDateDateIssue12/31/2015
General Obligation Taxable Utility Revenue Bonds:
Revenue Bonds of 2015A2.00 - 2.50%07/09/201502/01/20261,823,752$ 1,823,752$
Revenue Refunding Bonds of 2015A2.00 - 2.50%07/09/201502/01/20261,660,000 1,660,000
Total General Obligation Taxable Utility Revenue Bonds3,483,752 3,483,752
General Obligation Taxable Utility Revenue Notes:
PFA Revenue Note of 2015 1.00%01/20/201508/20/203417,560,510 17,545,158
Total business-type activities21,044,262$ 21,028,910$
70
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Annual debt service requirements to maturity for business-type activities long-term debt are as follows:
Business-Type Activities
Year EndingG.O. Revenue BondsG.O. Revenue Notes
December 31PrincipalInterestPrincipalInterest
2016140,000$ 76,415$ 944,000$ 173,351$
2017342,503 67,109 954,000 187,030
2018339,022 60,293 963,000 177,490
2019342,503 53,478 973,000 167,860
2020344,243 46,611 982,000 158,130
2021 - 20251,784,057 125,002 5,061,000 641,350
2026 - 2030191,424 2,393 5,320,000 383,160
2031 - 2034- - 2,348,158 111,800
Total3,483,752$ 431,301$ 17,545,158$ 2,000,171$
The utility revenue bonds and notes are backed by the full faith and credit of the City. Bonds and Notes in the business-type
activities will be retired with the net revenues of the Water Utility and Sanitary Sewer Utility systems. (Net revenues of each
system are defined as the excess of gross revenues and earnings over the normal, reasonable, and current costs of operating
and maintaining the system.) In the event that a deficiency exists because of inadequate net revenues at the time a debt
service payment is due, the City must provide resources to cover the deficiency until other resources are available. For the
year ended December 31, 2015, the water and sewer utility funds provided net revenues (excluding bond refunding) of
$1,001,891, which accounts for a debt-service coverage ratio of 254.45%.
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2015 was as follows:
BeginningEndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
G.O. tax increment bonds16,040,000$ 6,600,000$ (1,755,000)$ 20,885,000$ 8,505,000$
G.O. improvement bonds6,445,000 3,416,248 (1,270,000) 8,591,248 885,000
Total bonds payable22,485,000 10,016,248 (3,025,000) 29,476,248 9,390,000
Compensated absences1,282,093 146,530 (173,772) 1,254,851 125,485
Pension liability:
GERF*- 6,562,764 (120,892) 6,441,872 -
PEPFF*- 5,259,040 (191,436) 5,067,604 -
Net OPEB obligation629,994 229,237 (148,626) 710,605 -
Total government activity
long-term liabilities24,397,087$ 22,213,819$ (3,659,726)$ 42,951,180$ 9,515,485$
Business-type activities:
Bonds payable:
G.O. revenue bonds1,800,000$ 3,483,752$ (1,800,000)$ 3,483,752$ 140,000$
G.O. revenue notes- 17,560,510 (15,352) 17,545,158 944,000
Total business-type activity
long-term liabilities1,800,000$ 21,044,262$ (1,815,352)$ 21,028,910$ 1,084,000$
*Includes January 1, 2015 pension liability balance related to GASB Statement No. 68 implementation.
Compensated absences are liquidated by the Public Employees Compensated Absences internal service fund and the net
OPEB obligation by the Public Employees Retirement internal service fund. Net pension liabilities will be liquidated by
the Pension - GERF and Pension - PEPFF internal service funds.
71
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
CURRENT REFUNDING
On July 9, 2015, the City issued $1,660,000 of General Obligation Revenue Refunding Bonds, Series 2015A, bearing an
average coupon rate of 2.14 percent, to provide current refunding of $1,660,000 in principal on the City's Taxable General
Obligation Utility Revenue Bonds, Series 2010A relating to the 2016 to 2025 maturities. As a result of the refunding, the City
will achieve an economic gain of $70,450 (the present value of the difference between the old and the new debt service).
CROSSOVER REFUNDING
On July 9, 2015, the City issued $6,600,000 of General Obligation Tax Increment Refunding Bonds, Series 2015B, bearing an
average coupon rate of 3.00 percent, to provide advance crossover refunding on February 1, 2016, of the 2017 through 2020
maturities of the City's General Obligation Tax Increment Bonds, Series 2004D totalling $6,670,000 in principal. The proceeds
of the crossover bond were placed into an escrow account pending the call date. The escrow account bears interest rates that
will provide sufficient funds to refund the old bonds on February 1, 2016. The old bonds are not considered defeased until the
crossover date, and therefore will not be removed as a liability until then. As a result of the refunding, the City will achieve an
economic gain of $424,059 (the present value of the difference between the old and the new debt service).
CONDUIT DEBT OBLIGATIONS
From time to time, the City has issued Housing Revenue Bonds and Industrial Revenue Bonds or Notes to provide assistance
to qualified private sector entities for the acquisition and construction of housing, industrial, or commercial facilities deemed to
be in the public interest. The bonds or notes are secured by the property financed and are payable solely from payments
received on the underlying mortgage loans. The City has no obligation of its assets or of its general tax base for the repayment
of any of these bonds or notes. Accordingly, the bonds or notes are not reported as liabilities in the accompanying financial
statements. Upon final redemption of the bonds or notes, ownership of the property transfers to the private sector entity
served by the bond or note issue.
As of December 31, 2015 there were two series of fixed rate Multifamily Housing Revenue Refunding bonds, one Housing
Revenue Development Refinancing Note, two Healthcare Revenue Notes, four Senior Housing Development Revenue Notes,
and two Charter School Lease Revenue bonds outstanding. The aggregate amount of conduit debt as of December 31, 2015 is
$21,365,908.
G. FUND EQUITY
Net position reported in the government-wide statement of net position at December 31, 2015 include the following:
Governmental activities
Net investment in capital assets:
Cost of capital assets97,780,865$
Less: accumulated depreciation(41,247,817)
Less: related long-term debt outstanding(8,591,248)
Total net investment in capital assets47,941,800
Restricted:
Statutory housing obligations556,470
Tax increment financing19,328,012
Economic development1,522,267
Law enforcement enhancements83,686
Debt service11,218,383
Pension benefits1,178,922
State-Aid street systems2,922,853
Total restricte36,810,593
d
Unrestricte(5,495,836)
d
Total governmental activities net position79,256,557$
Related debt for governmental activities capital assets includes $8,591,248 in G.O. Improvement Bonds which was the amount
issued to finance the street portion of construction projects.
72
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Business-type activities
Net investment in capital assets:
Cost of capital assets
$121,892,047
Less: accumulated depreciation(55,321,898)
Less: related long-term debt outstanding(19,368,910)
Total net investment in capital assets47,201,239
Unrestricte8,452,630
d
Total business-type activities net position55,653,869$
Aggregated funds balances reported in the governmental funds balance sheet at December 31, 2015 include the following:
Governmental funds
NonspendableRestrictedCommittedAssigned
General
Inventories44,044$ -$ -$ -$
Prepaid Items34,815 - - -
Capital Improvements- - - 804,815
Tax Increment District No. 3
Statutory Housing Obligation- 556,470 - -
Tax Increment Financing- 16,640,289 - -
Debt Service
Debt Service- 8,747,914 - -
Capital Improvements
Capital Improvements- - 4,408,879 -
Municipal State-Aid for Construction
State-Aid Street Systems- 223,531 - -
Nonmajor Funds
Tax Increment Financing- 2,597,917 - -
Economic Development1,500 1,515,604 - -
Law Enforcement Enhancements- 83,686 - -
Public Safety- - 86,891 -
Cable Communications- - 281,821 -
Community Recreation- - 55,501 -
Emergency Capital Improvements- - 1,074,622 -
Street Improvements- - 3,183,754 -
Technology Improvements- - 214,756 -
Total fund balances80,359$ 30,365,411$ 9,306,224$$804,815
73
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Note 4 DEFINED BENEFIT PENSION PLAN - CITY EMPLOYEES
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public
Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax
qualified plans under Section 401(a) of the Internal Revenue Code.
1. GENERAL EMPLOYEES RETIREMENT FUND (GERF)
All full-time and certain part-time employees of the City are covered by the GERF. GERF members belong to either the
Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members
are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan.
2. PUBLIC EMPLOYEES POLICE AND FIRE FUND (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers
all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and
firefighters belonging to a local fire relief association that elected to merge with and transfer assets and administration to
PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only
be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan.
Members in plans that are at least 90 percent funded for two consecutive years are given 2.5 percent increases. Members in
plans that have not exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan
participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the
provisions in effect at the time they last terminated their public service.
1. GERF BENEFITS
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 or service. Two methods are used to compute benefits for PERA's Coordinated and Basic
Plan members. The retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or level accrual
formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary
for each of the first ten years of service, and 2.7 percent for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2 percent of average salary for each of the first ten years and 1.7 percent for each
remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7
percent for Coordinated Plan members for each year of service. For members hired prior to July 1, 1989, a full annuity is
available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Disability benefits are available
for vested members and are based upon years of service and average high-five salary.
74
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
2. PEPFF BENEFITS
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50
percent after five years up to 100 percent after ten years of credited service. Benefits for PEPFF members first hired
after June 30, 2014, vest on a prorated basis from 50 percent after ten years of service up to 100 percent after twenty
years of credited service. The annuity accrual rate is 3 percent of average salary for each year of service. For PEPFF
who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be
modified by the state legislature.
1. GERF CONTRIBUTIONS
Basic Plan members and Coordinated Plan members were required to contribute 9.1 percent and 6.5 percent, respectively,
of their annual covered salary in calendar year 2015. The City was required to contribute 11.78 percent of pay for Basic
Plan members and 7.5 percent for Coordinated Plan members in calendar year 2015. The City's contributions to the GERF
for years ended December 31, 2015, 2014 and 2013 were $564,168, $531,385, and $521,512. The City's contributions were
equal to the required contributions as set by state statute.
2. PEPFF CONTRIBUTIONS
Plan members were required to contribute 10.8 percent of their annual covered salary in calendar year 2015. The City was
required to contribute 16.2 percent of pay for PEPFF members in calendar year 2015. The City contributions to the PEPFF
for the year ended December 31, 2015, 2014 and 2013 were $687,935, $600,402, and $560,053 respectively. The City's
contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF PENSION COSTS
At December 31, 2015, the City reported a liability of $6,441,872 for its proportionate share of the GERF's net pension
liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability
was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2014 through June 30, 2015, relative to the total employer contributions received from all of PERA's
participating employers. At June 30, 2015, the City's proportion was 0.1243 percent which was a decrease of 0.0146
percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $685,060 for its proportionate share of the
GERF's pension expense.
75
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
At December 31, 2015, the City reported its proportionate share of the GERF's deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
DeferredDeferred
Outflows ofInflows of
ResourcesResources
Differences between expected and actual economic experience-$ 324,780$
Changes in actuarial assumptions- -
Differences between projected and actual investment earnings609,822 -
Changes in proportion- 514,376
GERF contributions paid subsequent to the measurement date289,088 -
Totals898,910$ 839,156$
$289,088 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
YearPension
EndedExpense
December 31,Amount
2016(127,263)$
2017(127,263)
2018(127,263)
2019152,455
Total(229,334)$
2. PEPFF PENSION COSTS
At December 31, 2015, the City reported a liability of $5,067,604 for its proportionate share of the PEPFF's net pension
liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability
was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2014 through June 30, 2015, relative to the total employer contributions received from all of PERA's
participating employers. At June 30, 2015, the City's proportion was 0.446 percent which was an increase of 0.008
percent from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City recognized pension expense of $887,890 for its proportionate share of
the PEPFF's pension expense. The City also recognized $40,140 for the year ended December 31, 2015, as pension
expense (and grant revenue) for its proportionate share of the State of Minnesota's on-behalf contributions to the PEPFF.
Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year,
starting in fiscal year 2014.
76
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
At December 31, 2015, the City reported its proportionate share of the PEPFF's deferred outflows of resources and
deferred inflows of resources related to pension from the following sources:
DeferredDeferred
Outflows ofInflows of
ResourcesResources
Differences between expected and actual economic experience-$ 821,799$
Changes in actuarial assumptions- -
Differences between projected and actual investment earnings882,945 -
Changes in proportion72,003 -
PEPFF contributions paid subsequent to the measurement date353,263 -
Totals1,308,211$ 821,799$
$353,263 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016.
Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized
in pension expense as follows:
YearPension
EndedExpense
December 31,Amount
201670,777$
201770,777
201870,777
201970,777
2020(149,959)
Total133,149$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions:
Inflation2.75% per year
Active Member Payroll Growth3.50% per year
Investment Rate of Return7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and
disabilitants were based on the RP-2000 tables for males or females, as appropriate, with slight adjustments. Cost of living
benefit increases for retirees are assumed to be: 1 percent effective January 1st until 2034, then 2.5 percent thereafter.
Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial experience studies. The
experience study in the GERF was for the period July 1, 2004, through June 30, 2008, with an update of economic
assumptions in 2014. The experience study for PEPFF was for the period July 1, 2004, through June 30, 2009.
There were no changes in actuarial assumptions in 2015.
77
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The long-term expected rate of return on pension plan investments is 7.9 percent. The State Board of Investment, which
manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a
regular basis using a building-block method in which best-estimate ranges of expected future rates of return are developed for
each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the
expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Long-Term
TargetExpected Real
Asset ClassAllocationRate of Return
Domestic Stocks45.00%5.50%
International Stocks15.00%6.00%
Bonds18.00%1.45%
Alternative Assets20.00%6.40%
Cash2.00%0.50%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.9 percent. The projection of cash flows used to determine
the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on
that assumption, each of the pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using
the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension
liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the
current discount rate:
6.90%7.90%8.90%
City's Proportionate ShareOne PointCurrentOne Point
of the Net Pension LiabilityDecreaseRateIncrease
GERF
$ 6,441,87210,128,911$ 3,396,942$
PEPFF
9,876,8135,067,6041,094,359
Total
$ 11,509,47620,005,724$ 4,491,301$
78
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report
that includes financial statements and required supplementary information. That report may be obtained by:
Internet:www.mnpera.org
Phone:(651) 296-7460
Mail:60 Empire Drive, #200
St. Paul, MN 55103-2088
Note 5 DEFINED BENEFIT PENSION PLAN - SINGLE EMPLOYER - FIRE RELIEF ASSOCIATION
A. 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.
At December 31, 2014, the membership of the Association consisted of:
Retirees and beneficiaries currently receiving benefits21
Terminated employees entitled to benefits but not yet receiving them6
Active plan participants - vested16
Active plan participants - non-vested18
Total61
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.
B. BENEFITS PROVIDED
Basic Service Pension for Retired Members -Upon retirement each individual will receive a lump sum distribution of $7,500
per year of service. This benefit level was placed into effect on January 1, 2006. Prior to 1998, a monthly benefit level of
$26.50 was available for retirees. The monthly benefit is no longer an option for retiring members. 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 from membership.
79
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Basic Service Pension for Deferred Pensioner - A member who is otherwise qualified for a service pension but who has not
reached the age of 50 years may retire from the Fire Department without forfeiting the member's right to such pension. Upon
approval of an application therefore, the deferred pensioner shall receive a pension based on the benefit level at that time
multiplied by such person's years of active service with the Fire Department and further multiplied by the decimal equivalent
of the applicable percentage determined from the following table:
Years of ServiceApplicable Percentage
1060%
1164
1268
1372
1476
1580
1684
1788
1892
1996
20 and beyond100
C. 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.
D. CONTRIBUTIONS
Authority for contributions to the pension plan is established by Minn. Stat. § 69.77 and may be amended only by the
Minnesota State Legislature. See 2013 Minn. Laws, ch. 111, art. 5, §§ 31 to 42 and 80. There are no employee contributions.
The City provided statutory contributions in 2015. The actuary compares the actual statutory contribution rate to a "required"
contribution rate. The required contribution rate consists of: (a) normal costs based on entry age normal cost methods, (b) a
supplemental contribution for amortizing any unfunded actuarial accrued liability, and (c) an allowance for administrative
expenses.
E. PENSION COSTS
At December 31, 2015, the City reported an asset of $1,092,416 for the difference between the Fire Relief Plan Fiduciary net
position and the total pension liability. The net pension asset was measured as of December 31, 2014, and the total pension
liability used to calculate the net pension asset was determined by an actuarial valuation as of that date.
80
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Changes in Net Pension Asset
Increase (Decrease)
Total PensionPlan FiduciaryNet Pension
LiabilityNet PositionLiability (Asset)
Balance at 12/31/142,769,189$ 3,827,651$ (1,058,462)$
Changes for the Year
Service Cost85,904 - 85,904
Interest178,242 - 178,242
Contributions - state and local- 158,545 (158,545)
Net Investment income- 149,635 (149,635)
Benefit Payments(617,541) (617,541) -
Administrative Expenses- (10,080) 10,080
Net Changes(353,395) (319,441) (33,954)
Balance at 12/31/152,415,794$ 3,508,210$ (1,092,416)$
At December 31, 2015, the City reported deferred outflows of resources, and deferred inflows of resources, its contributions
subsequent to the measurement date, related to pensions from the following sources:
DeferredDeferred
Outflows ofInflows of
ResourcesResources
Differences between projected and actual investment earnings81,506$ -$
Contributions paid subsequent to the measurement date148,061 143,061
Totals229,567$ 143,061$
$148,061 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016.
Deferred inflows of resources totalling $143,061 related to state aid received subsequent to the measurement date will be
recognized for its impact on the net pension liability in the year ended December 31, 2016. Other amounts reported as
deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
YearPension
EndedExpense
December 31,Amount
201620,377$
201720,377
201820,377
201920,375
Total81,506$
81
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
F. ACTUARIAL ASSUMPTIONS
The Association is funded with contributions from the City of Brooklyn Center. The actuarially determined contributions in the
Schedule of Contributions are calculated as of the beginning of the fiscal year in which contributions were reported.
The following methods and assumptions were used to calculate the actuarially determined contributions reported in the most
recent fiscal year end.
• The most recent actuarial valuation date is January 1, 2015.
• Actuarial cost is determined using the Entry Age Normal Cost Method.
• The actuarial value of assets is market value.
• The unfunded accrued liability is amortized using a 20-year rolling end date.
• Investment rate of return is 7.00 percent.
• The inflation rate assumption is 2.75 percent.
• Mortality assumptions for pre-retirement, post-retirement, and post-disability are:
Pre-retirement:RP 2000 Non-annuitant Table with white collar adjustment,
generationally projected using Scale AA, and set back two
years for males and females.
Post-retirement:RP 2000 Annuitant Mortality Table with white collar
adjustment, generationally projected using Scale AA for males
and females.
Post-disability:RP 2000 Annuitant Mortality Table with white collar
adjustment, set forward eight years for males and females.
There were no changes in actuarial assumptions in 2015.
The best estimate range for the long-term expected rate of return is determined by adding expected inflation to expected
long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are per the actuary's
investment consulting practice as of January 1, 2015
Long-Term
TargetExpected Real
Asset ClassAllocationRate of Return
Domestic and International Equities50.00%5.00%
Fixed Income45.00%1.75%
Cash and equivalents5.00%0.25%
G. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.00 percent. The projection of cash flows used to determine
the discount rate assumed that City contributions will be made at the actual statutory contribution rate. Based on those
assumptions, the Association's fiduciary net position was projected to be available to make all projected future benefit
payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.
82
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
H. PENSION LIABILITY (ASSET) SENSITIVITY
The following presents the net pension asset calculated using the discount rate of 7.00 percent, as well as what the net
pension (asset)/liability would be if it were calculated using a discount rate that is one-percentage-point lower (6.00 percent)
or one percentage- point higher (8.00 percent) than the current rate:
6.00%7.00%8.00%
City's Proportionate ShareOne PointCurrentOne Point
of the Net Pension LiabilityDecreaseRateIncrease
Net Pension (Asset)/Liability
$ (1,092,416)(974,770)$ (1,195,484)$
Note 6 MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN
City employees belonging to International Union of Operating Engineers (IUOE) are participants in a multiple-employer
defined benefit pension plan Central Pension Fund of the International Union of Operating Engineers and Participating
Employers (CPF) administered by the Board of Trustees of the Central Pension Fund. The plan is a cost-sharing pension plan
that is not a state or local governmental pension plan, is used to provide defined benefit pensions both to employers that are not
state or local governmental employers, and has no predominant state or local government employer. The Plan issues a publicly
available financial report located on their website at www.cpfiuoe.org.
The City has 22 employees who are covered by this pension plan. The plan provides benefits such as monthly retirement
income, special and early retirement benefits, post-retirement surviving spouse benefits, pre-retirement surviving spouse
benefits, and disability benefits. The CPF is a supplemental Pension Fund authorized by Minnesota Statutes, 356.24,
subdivision 1(9). The CPF Plan of Benefits and the Agreement and Declaration of Trust will serve as the governing
documents.
The City's contributions to the plan are pursuant to a collective bargaining agreement with the IUOE which expires December
31, 2016. The required contribution rate is $0.96 per hour, which is applied to all compensated hours, and capped at $5,000 per
year. Total employer contributions for the year ended December 31, 2015 were $51,699. With regard to withdrawal from the
pension plan, the parties agree that the amount that would otherwise be paid in salary or wages will be contributed instead to
the CPF as pre-tax employer contributions.
Note 7 DEFINED CONTRIBUTION PLAN
There are five City Council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP),
a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section
401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of
withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses.
Minnesota Statutes, Chapter 353(D.03), specifies plan provisions, including the employee and employer contribution rates for
those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5 percent
of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to
purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the
plan, PERA receives 2 percent of employer contributions and twenty-five hundredths of 1 percent (.0025%) of the assets in
each member's account annually.
83
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Total contributions made by the City for the last three fiscal years were:
Required Rate for Employees &
Contribution AmountPercentage of Covered PayrollEmployers
For the Year Ended:EmployeeEmployerEmployeeEmployerEmployeeEmployer
December 31, 2015$ 907907$ 5.0%5.0%5.0%5.0%
December 31, 2014 907907 5.0%5.0%5.0%5.0%
December 31, 2013 880880 5.0%5.0%5.0%5.0%
Note 8 OTHER POST-EMPLOYMENT BENEFITS
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 4.B., the City provides postemployment health care benefits for
retired employees and police disabled in the line of duty, through a single-employer defined benefit plan administered by the
City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 subd. 2a. and 299A.465.
The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended
by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not
accounted for as a trust fund, as an irrevocable trust has not been established to account for the Plan. The Plan does not
issue a separate report.
B. BENEFITS PROVIDED
Retirees
The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the
individual terminates service with the City through service retirement or disability retirement. Former employees who are
receiving, or who have met age and service requirements to receive, an annuity from a Minnesota public pension plan and
those receiving a disability benefit from such a plan are immediately eligible to participate in this Plan. Retirees may obtain
dependent coverage if the employee received dependent coverage immediately before leaving employment. Covered spouses
may continue coverage after the death of a retiree. In addition, the surviving spouse of an active employee may continue
coverage in the group health insurance plan after the employee’s death.
All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay the
premium as described below:
Employees hired before January 1, 1992 with continuous full-time employment
Employees who, on the date of their retirement, meet eligibility requirement for a full retirement annuity under PERA or
PERA Police without reduction of benefits because of age, disability, or any other reason for reduction shall be eligible for the
City to pay 100% of the single-person premium until such time as the retiree is eligible for Medicare or at age 65, whichever
is sooner. If the retiree desires to continue coverage in excess of single coverage, the additional cost for the coverage shall
be paid to the City by the retiree on a monthly basis.
84
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
Employees hired after January 1, 1992
The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they
participate.
The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for
retirees exceed the blended premium paid by retirees, they are receiving an implicit rate subsidy (benefit). The coverage
levels are the same as those afforded to active employees.
Disabled police and firefighter
The City is required to continue to pay the employer’s contribution toward health coverage for police or firefighters disabled
in the line of duty per Minnesota Statute 299A.465, until age 65. Dependent coverage is included, if the dependents were
covered at the time of the disability.
PARTICIPANTS
As of the actuarial valuation dated January 1, 2014, participants consisted of:
Retirees for which the City is paying the single premium14
Retirees and beneficiaries currently purchasing
health insurance through the City1
Disabled police officers2
Active employees151
Total168
C. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-go basis. The
City Council may change the funding policy at any time.
D. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual other post-employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC)
of the employer, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize
any unfunded actuarial obligation (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of
December 31, 2015 was calculated as follows:
Annual required contribution226,469$
Interest on net OPEB obligation28,350
Adjustment to ARC(25,582)
Annual OPEB cost229,237
Employer Contributions
Direct123,416
Indirect Implicit Rate Subsidy25,210
Increase (decrease) in net OPEB obligation80,611
Net OPEB obligation, beginning of yea629,994
r
Net OPEB obligation, end of yea$710,605
r
85
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The City had an actuarial valuation performed for the plan as of January 1, 2014 to determine the funded status of the plan as
of that date as well as the employer’s ARC for the fiscal year ended December 31, 2015. The City’s annual OPEB cost, the
percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the past three years were as
follows:
Percentage of
FiscalAnnualAnnual Net
YearOPEBEmployerOPEB CostOPEB
EndedCostContributionsContributedObligation
12/31/2013238,744$ 140,071$ 58.67%586,026$
12/31/2014226,724 182,756 80.61%629,994
12/31/2015229,237 148,626 64.84%710,605
86
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
E. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited into a trust for future benefits; therefore, the actuarial
value of assets is zero. Instead of depositing funds into an irrevocable trust, the City has chosen to accumulate funding into
an internal service fund. The cash and investment balance of the internal service fund is $565,856 for the year ended
December 31, 2015. The funded status of the plan was as follows:
Unfunded
ActuarialActuarialUAAL as a
ActuarialActuarialAccruedAccruedPercentage
ValuationValue ofLiabilityLiability FundedCoveredof Covered
DateAssets (AAL)(UAAL)RatioPayroll Payroll
1/1/2010$ 3,012,383-$ 3,012,383$ 0.00%9,143,276$ 32.95%
1/1/2012 2,620,367- 2,620,367 0.00%9,472,237 27.66%
1/1/2014 2,574,529- 2,574,529 0.00%9,934,960 25.91%
F. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the
probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and
the health care cost trend. Amounts determined regarding the funding status of the plan and the annual required contribution
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary information following the
notes to the financial statements, presents multi-year trend information that shows whether the actuarial value of the plan
assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the
actuarial value of assets, consistent with the long-term perspective of the calculations.
87
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
In the January 1, 2014 actuarial valuation, the Projected Unit Credit actuarial cost was used. The actuarial assumptions
included a 4.5% investment rate of return (net of administrative expenses) and an initial annual health care cost trend rate of
9.0% reduced by 0.33% each year to arrive at an ultimate health care cost trend rate of 5.0%. Both rates include a 3.0%
inflation assumption. The actuarial value of assets is $0, however the City does have $565,856 of funds accumulated in an
internal service fund. The plans' unfunded actuarial accrued liability is being amortized as of the valuation date with a payroll
growth rate of 3.75% over 30 years on an open basis.
Note 9 OTHER INFORMATION
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions and natural disasters.
Property and casualty insurance is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity
risk pool currently operating as a common risk management and insurance program for Minnesota cities: general liability,
property, automobile, mobile property and marine, crime, employee dishonesty, boiler, and open meeting law. The City pays an
annual insurance premium to the LMCIT for its insurance coverage. The City is subject to supplemental assessments if
deemed necessary by the LMCIT. Currently, the LMCIT is self-sustaining through member premiums and reinsures through
commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions of the
insurance policies. The amount of these deductibles is considered immaterial to the financial statements.
Workers’ compensation coverage is provided through a pooled self-insurance program through the LMCIT. The City pays an
annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The
LMCIT reinsures through Workers’ Compensation Reinsurance Association (WCRA) as required by law. For workers’
compensation, the City is not subject to a deductible. The City’s workers’ compensation is retroactively rated. With this type
of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is
considered immaterial and not recorded until received or paid.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for
any of the past three years.
B. ARBITRAGE REBATE
The Tax Reform Act of 1986 requires governmental entities to pay to the federal government income earned on the proceeds
from the issuance of debt in excess of interest costs, pending the expenditure of the borrowed funds. This rebate of interest
income (known as arbitrage) applies to governmental debt issued after August 31, 1986. The City issued greater than $5 million
of bonds in 2004 and therefore is required to rebate excess investment income relating to these issues to the federal
government. The extent of the City’s liability for arbitrage rebates on the remaining bond issues is not determinable at this
time. However, in the opinion of management, any such liability would be immaterial.
88
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
C. LITIGATION
The City is subject to certain legal claims in the normal course of business. Management does not expect the resolution
of these claims will have a material impact on the City’s financial condition or results of operations.
D. CONTINGENT LIABILITIES
Tax Increment Notes
In May 2002, the City entered into two limited tax increment notes with developers whereby the City will pay the developers a
percentage of the available tax increment. Whether payments will occur and the amount of the payments is unpredictable
since all payments are dependent on the City receiving tax increment revenues from the developer’s project. As such, this
liability has not been recorded in the financial statements. Any potential liability ends with the decertification of the tax
increment district.
In December 2012, the City entered into a tax increment revenue note with a developer whereby the City will pay the
developer the available tax increments as defined in the Tax Increment Development Agreement. Whether payments will
occur and the amount of the payments is unpredictable since all payments are dependent on the City receiving tax increment
revenues from the developer’s project. As such, this liability has not been recorded in the financial statements. Any potential
liability ends with the decertification of the tax increment district.
A schedule of the notes outstanding at December 31, 2015 is as follows:
Amended
or Original12/31/2015InterestMaturity
NotePrincipalBalanceRateDate
Twin Lakes Business Park2,424,199$ 351,274$ 8.00%01/31/2021
Shingle Creek Crossing Project2,300,000 2,184,912 6.00%02/01/2028
E. 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 2015 financial statements of the City is $549,151 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 2015 health and life insurance costs paid by the City was $1,400,941. Complete financial statements may be
obtained from Gallagher Benefit services, Inc. located at 3600 American Blvd West, Bloomington, MN 55431.
89
CITY OF BROOKLYN CENTER, MINNESOTA
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2015
The Brooklyn Center Fire Department Relief Association (the Association)
The Association is organized as a nonprofit organization, legally separate from the City, by its members to provide
pension and other benefits to members in accordance with Minnesota Statutes. Its board of directors is elected by the
membership of the Association and not by the City Council. The Association issues its own set of financial statements.
All funding is conducted in accordance with applicable Minnesota Statutes, whereby state aids flow to the Association,
tax levies are determined by the Association and are only reviewed by the City. The Association pays benefits directly
to its members. The Association may certify tax levies to Hennepin County directly if the City does not carry out this
function. Because the Association is fiscally independent of the City, the financial information of the Association has
not been included within the City’s financial statements. (See Note 5 for disclosures relating to the pension plan
operated by the Association.) Complete financial statements for the Association may be obtained at the City offices
located at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430.
90
wĻƨǒźƩĻķ
{ǒƦƦƌĻƒĻƓƷğƩǤLƓŅƚƩƒğƷźƚƓ
CITY OF BROOKLYN CENTER, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - OTHER POSTEMPLOYMENT BENEFITS
For the Year Ended December 31, 2015
Unfunded
ActuarialActuarialActuarialActuarialUAAL as a
ValuationValue ofAccruedAccruedFundedCoveredPercentage of
DateAssetsLiability (AAL)Liability (UAAL)RatioPayrollCovered Payroll
January 1, 2010-$ 3,012,383$ 3,012,383$ 0.00%9,143,276$ 32.95%
January 1, 2012- 2,620,367 2,620,367 0.00%9,472,237 27.66%
January 1, 2014- 2,574,529 2,574,529 0.00%9,934,960 25.91%
91
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
Required Supplementary Information (Last Ten Years*)
StatutorilyContributions in RelationContributionContributions as a
Required to the Statutorily RequiredDeficiencyCoveredPercentage of
Fiscal Year EndingContributions (a)Contributions (b)(Excess) (a -b)Payroll** (d)Covered Payroll (b/d)
December 31, 2015564,168$ 564,168$ -$ 7,522,206$ 7.50%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
92
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
Required Supplementary Information (Last Ten Years*)
Employer's Proportionate
Employer's ProportionEmployer's ProportionateShare of the Net PensionPlan Fiduciary Net
(Percentage)Share (Amount) of theEmployer'sLiability (Asset) as aPosition as a
of the Net PensionNet Pension LiabilityCovered Percentage of itsPercentage of the
Fiscal Year EndingLiability (Asset)(Assets) (a)Payroll** (b)Covered Payroll (a/b)Total Pension Liability
June 30, 20150.1243%$ 6,441,872$7,303,59588.20%78.20%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
93
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
PUBLIC EMPLOYEES POLICE AND FIRE FUND
Required Supplementary Information (Last Ten Years*)
StatutorilyContributions in RelationContributionContributions as a
Required to the Statutorily RequiredDeficiencyCoveredPercentage of
Fiscal Year EndingContributions (a)Contributions (b)(Excess) (a -b)Payroll** (d)Covered Payroll (b/d)
December 31, 2015687,935$ 687,935$ -$ 4,246,511$ 16.20%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
94
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
PUBLIC EMPLOYEES POLICE & FIRE FUND
Required Supplementary Information (Last Ten Years*)
Employer's Proportionate
Employer's ProportionEmployer's ProportionateShare of the Net PensionPlan Fiduciary Net
(Percentage)Share (Amount) of theEmployer'sLiability (Asset) as aPosition as a
of the Net PensionNet Pension LiabilityCovered Percentage of itsPercentage of the
Fiscal Year EndingLiability (Asset)(Assets) (a)Payroll** (b)Covered Payroll (a/b)Total Pension Liability
June 30, 20150.4460%$ 5,067,604$ 4,031,138125.71%86.60%
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
** For purposes of this schedule, covered payroll is defined as "pensionable wages".
95
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CHANGES IN NET PENSION ASSET AND RELATED RATIO
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years*)
2015
Total pension Liability
Service Cost85,904$
Interest178,242
Benefit Payments(617,541)
Net Change in Total Pension Liability(353,395)
Total Pension Liability - Beginning of Year2,769,189
Total Pension Liability - End of Year2,415,794
Plan Fiduciary Net Position
Contributions - State and Local 158,545
Net Investment Income 149,635
Benefit Payments (617,541)
Administrative Expenses (10,080)
Net Change in Plan Fiduciary Net Position (319,441)
Plan Fiduciary Net Position - Beginning of Year 3,827,651
Plan Fiduciary Net Position - End of Year 3,508,210
Net Pension Liability (Asset) - End of Year (1,092,416)
Plan Fiduciary Net Position as a Percentage of the Total
Pension Liability145.2%
Covered Employee Payrolln/a
Net Pension Liability as a Percentage of Covered Payrolln/a
* This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015
(using a December 31, 2014 measurement date).
96
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
FIRE RELIEF ASSOCIATION
Required Supplementary Information (Last Ten Years^)
20152014201320122011
Actuarially Determined Contribution*$ 101,453$ 111,463$ 111,463$ 135,929
Contributions in Relation of the
Actuarially Determined Contribution 148,061 158,545 134,340 151,503 101,119
Contribution Deficiency (Excess)
* (57,092) (22,877) (40,040) 34,810
Covered - Employee Payrolln/an/an/an/an/a
Contributions as a Percentage of
Covered Employee Payrolln/an/an/an/an/a
Notes to Schedule
Valuation date:
Actuarilly determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal
year in which contributions are reported.
Methods and assumptions used to determine contribution rates:
Actuarial cost methodEntry age normal cost method
Amortization methodLevel dollar amount amortized on a closed basis
Remaining amortization period8 years
Asset valuation methodfair value
InflationNot applicable
Salary increasesNot applicable
Investment rate of return7.0% compounded annually
Retirement ageMembers are assumed to retire at the later of age 52 or 20 years of service
MortalityBased on RP-2000 Annuitant Mortality Table
^ This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.
* Information unavailable at time of audit
97
CITY OF BROOKLYN CENTER, MINNESOTA
SCHEDULE OF CITY CONTRIBUTIONS
INTERNATIONAL UNION OF OPERATING ENGINEERS CENTRAL PENSION FUND
Required Supplementary Information (Last Ten Years)
Required
Fiscal Year EndingContributions
December 31, 201551,699$
December 31, 201451,868
December 31, 201352,046
December 31, 201251,636
December 31, 201150,603
December 31, 201052,004
December 31, 200950,566
December 31, 200847,822
December 31, 200749,632
December 31, 200648,882
98
/ƚƒĬźƓźƓŭεLƓķźǝźķǒğƌ
CǒƓķ{ƷğƷĻƒĻƓƷƭε{ĭŷĻķǒƌĻƭ
CITY OF BROOKLYN CENTER, MINNESOTA
NONMAJOR SPECIAL REVENUE FUNDS
A special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or
committed to expenditure for specified purposes other than debt service or capital projects.
Housing and Redevelopment Authority (HRA
)
This fund was established to account for housing and redevelopment projects within the City of Brooklyn Center.
The HRA has the authority to levy an ad-valorem property tax levy, which is the primary funding source for th
e
expenditures from this fund. Annually, the cash balance at the end of the year is transferred into the EDA fund.
Economic Development Authority (EDA
)
This fund was established to account for the development related activities in the City of Brooklyn Center. The
EDA generates the funding to accomplish the development projects from grants, excess funding from the HR
A
roperty tax levy, or from transfers from other funds of the City.
p
Community Development Block Gran
t
This fund was established to account for the collection of grant funding for related projects within the City. Durin
g
the year, the City received grant funding through the Neighborhood Stabilization Program, which is for th
e
acquisition of run-down properties, the improvement of said properties, and then marketing them to the public.
Police Forfeitures
This fund was established to account for the proceeds from property seized by Police Department personnel.
Tax Increment District No. 2
This fund was established to account for the collection of tax increment generated revenues for parcels withi
n
the District. These funds are used to finance the various redevelopment activities within the District, whic
h
consisted of the redevelopment of the properties historically referred to as the Earle Brown Farm.
Tax Increment District No. 4
This fund was established to account for the collection of tax increment generated revenues for parcels withi
n
the District. These funds are used to finance the various redevelopment activities within the District, whic
h
consisted of soil remediation projects within the France Avenue Business Park.
City Initiative Grants
Revenues and expenditures from grants received from outside entities are accounted for in the fund. The Police
Department receive several federal, state and other local grants, which are accounted for here. Other activities
include grant funding for local recreation programs and cable television.
Centennial Amphitheate
r
This fund was established to account for the accumulation of donations and other funding sources that will b
e
used to build the Centennial Civic & Veterans Memorial Amphitheater.
99
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND
Debt service funds are used to account for and report financial resources that are restricted, committed or
assigned to expenditure for principal, interest and other charges related to long-term debt.
General Obligation Improvement Bonds, 2004C
This fund was established to accumulate collections of special assessments which were levied on the propert
y
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bon
d
has a final maturity date of February 1, 2015.
General Obligation Improvement Bonds, 2006A
This fund was established to accumulate collections of special assessments which were levied on the propert
y
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bon
d
has a final maturity date of February 1, 2017.
General Obligation Improvement Bonds, 2008B
This fund was established to accumulate collections of special assessments which were levied on the propert
y
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bon
d
has a final maturity date of February 1, 2019.
General Obligation Improvement Bonds, 2013B
This fund was established to accumulate collections of special assessments which were levied on the propert
y
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bon
d
has a final maturity date of February 1, 2024.
General Obligation Improvement Bonds, 2015A
This fund was established to accumulate collections of special assessments which were levied on the propert
y
owners who benefited from the improvements that were constructed with the proceeds of this bond. This bon
d
has a final maturity date of February 1, 2026.
Tax Increment Refunding Bonds, 2015B
This fund was established to account for the collection of tax-increment generated revenues, which are annuall
y
transferred from Tax Increment District No. 3 fund. The bond was issued to refund the maturities of the Tax
Increment Bonds, 2004D. This original bond was issued to finance various redevelopment projects within the City.
This bond has a final maturity date of February 1, 2020.
Tax Increment Bonds, 2013A
This fund was established to account for the collection of tax-increment generated revenues, which are annuall
y
transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2022.
Tax Increment Bonds, 2008A
This fund was established to account for the collection of tax-increment generated revenues, which are annuall
y
transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2018.
Tax Increment Bonds, 2004D
This fund was established to account for the collection of tax-increment generated revenues, which are annuall
y
transferred from Tax Increment District No. 3 fund. This bond was issued to finance various redevelopment projects
within the City. This bond has a final maturity date of February 1, 2020.
100
CITY OF BROOKLYN CENTER, MINNESOTA
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for and report financial resources that are restricted, committed, o
r
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and othe
r
capital assets.
Capital Reserve Emergenc
y
This fund was established to account for monies held in reserve for catastrophic losses or unforeseen capital items.
Street Reconstruction
This fund was established to provide funds and to account for the expenditure of such funds, for major street
infrastructure improvements. The accumulation of funds to provide for such improvements is an attempt to reduc
e
future debt issuance. The primary financing source for such improvements are franchise fees
.
Technolog
y
This fund was established to provide funds and to account for the expenditure of such funds, for technological
improvements/renovations.
101
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
Total
SpecialCapitalNonmajor
RevenueProjectGovernmental
ASSETS
Cash and investments1,848,387$ 4,320,536$ 6,168,923$
Receivables:
Accounts - net- 164,692 164,692
Current taxes1,173 - 1,173
Delinquent taxes6,663 - 6,663
Due from other governments153,295 - 153,295
Prepaid items1,500 - 1,500
Advances to other funds2,463,683 - 2,463,683
Assets held for resale537,000 - 537,000
Total assets5,011,701 4,485,228 9,496,929
LIABILITIES
Accounts payable 341,472 12,096 353,568
Accrued salaries and wages 5,269 - 5,269
Due to other governments 37 - 37
Deposits payable 35,793 - 35,793
Total liabilities 382,571 12,096 394,667
S
DEFERRED INFLOWS OF RESOURCE
Unavailable revenue - property taxes 6,663 - 6,663
FUND BALANCES
Nonspendable
Prepaid items -1,500 1,500
Restricted
Tax increment financing 2,597,917 2,597,917-
Economic development 1,515,604 1,515,604-
Law enforcement enhancements 83,686 - 83,686
Committed
Public safety 86,891 - 86,891
Cable communications 281,821 281,821-
Community recreation 55,501 - 55,501
Emergency capital improvements 1,074,622- 1,074,622
Street improvements 3,183,754- 3,183,754
Technology improvements 214,756- 214,756
Unassigned (453) - (453)
Total fund balances 4,622,467 4,473,132 9,095,599
Total liabilities, deferred inflows of
resources and fund balances$5,011,701$4,485,228$ 9,496,929
102
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
Total
SpecialCapitalNonmajor
RevenueProjectGovernmental
REVENUES
Property taxes274,058$ -$ 274,058$
Tax increments362,053 - 362,053
Franchise fees- 653,648 653,648
Intergovernmental1,518,674 - 1,518,674
Charges for services6,952 - 6,952
Fines and forfeits23,566 - 23,566
Investment earnings (net of market value adjustment)14,294 39,489 53,783
Miscellaneous72,229 - 72,229
Total revenues2,271,826 693,137 2,964,963
EXPENDITURES
Current:
General government- 16,365 16,365
Public safety218,988 - 218,988
Parks and recreation140,319 - 140,319
Economic development1,979,840 - 1,979,840
Capital outlay:
General government- 27,723 27,723
Public safety19,010 - 19,010
Public Works- 2,241,978 2,241,978
Parks and recreation568,254 - 568,254
Debt service- 28,509 28,509
Total expenditures2,926,411 2,314,575 5,240,986
Excess (deficiency) of revenues
over (under) expenditures(654,585) (1,621,438) (2,276,023)
OTHER FINANCING SOURCES (USES)
Transfers in583,682 235,020 818,702
Issuance of debt- 2,193,540 2,193,540
Premium on issuance of debt- 34,788 34,788
Transfers out(476,047) (476,047)-
Total other financing sources (uses) 107,635 2,463,348 2,570,983
Net change in fund balance (546,950) 841,910 294,960
Fund balances - January 1 5,169,417 3,631,222 8,800,639
Fund balances - December 31$4,622,467$4,473,132$9,095,599
103
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2015
Housing andEconomicCommunity
RedevelopmentDevelopmentDevelopmentPolice
AuthorityAuthorityBlock GrantForfeitures
ASSETS
Cash and investments-$ 1,001,989$ 43,305$ 104,479$
Receivables:
Current taxes1,173 - - -
Delinquent taxes6,663 - - -
Due from other governments- - 82,726 -
Prepaid items- 1,500 - -
Advances to other funds- - - -
Assets held for resale- 537,000 - -
Total assets7,836 1,540,489 126,031 104,479
LIABILITIES
Accounts payable - 5,919 126,484 -
Accrued salaries and wages - 3,639 - -
Due to other governments - - - -
Deposits payable - 15,000 - 20,793
Total liabilities- 24,558 126,484 20,793
S
DEFERRED INFLOWS OF RESOURCE
Unavailable revenue - property taxes 6,663 - - -
FUND BALANCES
Nonspendable
Prepaid items 1,500- - -
Restricted
Tax increment financing - -- -
Economic development1,173 1,514,431 - -
Law enforcement enhancements- - - 83,686
Committed
Public safety -- - -
Cable communications- - - -
Community recreation- - - -
Unassigned- - (453) -
Total fund balances1,173 1,515,931 (453) 83,686
Total liabilities, deferred inflows of
resources and fund balances7,836$ 1,540,489$ 126,031$ 104,479$
104
Total
TaxTaxCityNonmajor
IncrementIncrementInitiativeCentennialSpecial
District No. 2District No. 4GrantsAmphitheaterRevenue
$ 87,587$ 251,781$ 357,296$ 1,950$ 1,848,387
- - - - 1,173
- - - - 6,663
- - 70,569 153,295-
- - - - 1,500
2,463,683 - - 2,463,683-
- - - 537,000-
2,551,270 251,781 427,8651,9505,011,701
205,134- 1,985 1,950 341,472
- - 1,630 - 5,269
- - 37 - 37
- - - - 35,793
205,134- 3,652 1,950 382,571
- - - - 6,663
- - - - 1,500
2,551,270 46,647 - 2,597,917-
1,515,604-
---
- - - - 83,686
- - 86,891 - 86,891
- 281,821- 281,821-
- - 55,501 - 55,501
- - - - (453)
2,551,270 46,647 424,213 4,622,467-
$ 2,551,270$ 251,781$ 427,865$1,950$5,011,701
105
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For the Year Ended December 31, 2015
Housing andEconomicCommunity
RedevelopmentDevelopmentDevelopmentPolice
AuthorityAuthorityBlock GrantForfeitures
REVENUES
Property taxes274,058$ -$ -$ -$
Tax increments- - - -
Intergovernmental- 829,851 368,388 -
Charges for services- - - -
Fines and forfeits- - - 23,566
Investment earnings (net of market value adjustment)- 8,316 - 836
Miscellaneous- 4,965 - -
Total revenues274,058 843,132 368,388 24,402
EXPENDITURES
Current:
Public safety- - - 36,513
Parks and recreation- - - -
Economic development- 1,137,307 180,741 -
Capital outlay:
Public safety- - - 2,524
Parks and recreation- - - -
Total expenditures- 1,137,307 180,741 39,037
Excess (deficiency) of revenues
over (under) expenditures274,058 (294,175) 187,647 (14,635)
OTHER FINANCING SOURCES (USES)
Transfers in- 274,363 - -
Transfers out(274,363) - (188,100) -
Total other financing sources (uses)(274,363) 274,363 (188,100) -
Net change in fund balance(305)(19,812)(453)(14,635)
Fund balances - January 11,4781,535,743-98,321
Fund balances - December 31$1,173$1,515,931$(453)$83,686
106
Total
TaxTaxCityNonmajor
IncrementIncrementInitiativeCentennialSpecial
District No. 2District No. 4GrantsAmphitheaterRevenue
$ --$ -$ -$ 274,058$
420,807(58,754) - - 362,053
-25,400 295,035 - 1,518,674
--6,952-6,952
-- - - 23,566
558783 2,818 983 14,294
-21,007 33,182 13,075 72,229
421,365(11,564) 337,987 14,058 2,271,826
-- 182,475 - 218,988
-- 75,648 64,671 140,319
640,13721,655 - - 1,979,840
--16,486-19,010
-- - 568,254 568,254
640,13721,655 274,609 632,925 2,926,411
(218,772)(33,219) 63,378 (618,867) (654,585)
-- - 309,319 583,682
--(13,584)-(476,047)
--(13,584)309,319107,635
(33,219)(218,772)49,794(309,548)(546,950)
2,584,489265,419374,419309,5485,169,417
$2,551,270$46,647$424,213$ 4,622,467-$
107
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2015
Total
CapitalNonmajor
ReserveStreetCapital
EmergencyReconstructionTechnologyProjects
ASSETS
Cash and investments1,074,622$ 3,019,062$ 226,852$ 4,320,536$
Receivables:
Accounts - net- 164,692 - 164,692
Total assets1,074,622 3,183,754 226,852 4,485,228
LIABILITIES
Accounts payable- - 12,096 12,096
FUND BALANCES
Committed
Emergency capital improvements1,074,622 - - 1,074,622
Street improvements- 3,183,754 - 3,183,754
Technology improvements- - 214,756 214,756
Total fund balances1,074,622 3,183,754 214,756 4,473,132
Total liabilities and fund balances1,074,622$ 3,183,754$ 226,852$ 4,485,228$
108
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For the Year Ended December 31, 2015
Total
CapitalNonmajor
ReserveStreetCapital
EmergencyReconstructionTechnologyProjects
REVENUES
Franchise fees-$ 653,648$ -$ 653,648$
Investment earnings (net of market value adjustment)8,406 30,877 206 39,489
Total revenues8,406 684,525 206 693,137
EXPENDITURES
Current:
General government- - 16,365 16,365
Capital outlay:
General government- - 27,723 27,723
Public works- 2,241,978 - 2,241,978
Debt service:
Bond issuance costs- 28,509 - 28,509
Total expenditures- 2,270,487 44,088 2,314,575
Excess (deficiency) of revenues
over (under) expenditures8,406 (1,585,962) (43,882) (1,621,438)
OTHER FINANCING SOURCES
Transfers in- - 235,020 235,020
Issuance of debt- 2,193,540 - 2,193,540
Premium on issuance of debt- 34,788 - 34,788
Total other financing sources - 2,228,328 235,020 2,463,348
Net change in fund balance8,406 642,366 191,138 841,910
Fund balances - January 11,066,216 2,541,388 23,618 3,631,222
Fund balances - December 311,074,622$ 3,183,754$ 214,756$ 4,473,132$
109
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 1 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
REVENUES
Taxes:
Property taxes14,842,823$ 14,842,823$ 14,451,515$ (391,308)$
Penalties and interest28,710 28,710 5,099 (23,611)
Lodging tax880,000 880,000 1,075,425 195,425
Total taxes15,751,533 15,751,533 15,532,039 (219,494)
Special assessments85,000 85,000 148,234 63,234
Licenses and permits:
Liquor and beer licenses69,400 69,400 66,792 (2,608)
Building permits275,000 275,000 329,882 54,882
Mechanical permits40,000 40,000 87,950 47,950
Sewer and water permits1,500 1,500 3,260 1,760
Plumbing permits30,000 30,000 53,104 23,104
Garbage licenses3,460 3,460 3,250 (210)
Mechanical licenses9,000 9,000 9,320 320
Service station licenses2,500 2,500 2,190 (310)
Vehicle dealer licenses1,250 1,250 1,500 250
Bowling licenses720 720 - (720)
Cigarette licenses3,150 3,150 2,638 (512)
Sign permits5,000 5,000 6,559 1,559
Rental dwelling licenses233,550 233,550 233,426 (124)
Amusement licenses725725 605 (120)
Electrical Permits 45,000 45,000 46,666 1,666
ROW permits 3,000 3,000 7,596 4,596
Miscellaneous licenses and permits 4,860 4,860 4,796 (64)
Total licenses and permits 728,115 728,115 859,534 131,419
Intergovernmental:
State:
Local government aid 747,076 747,076 747,076 -
Local performance aid 4,200 4,200 - (4,200)
Police pension aid 340,000 340,000 360,232 20,232
PERA aid 34,365 34,365 34,365 -
Fireperson pension aid 135,000 135,000 148,061 13,061
Police training 15,000 15,000 15,993 993
Other state grants 3,000 3,000 7,525 4,525
Local:
Miscellaneous grants 84,300 84,300 97,443 13,143
Total intergovernmental 1,362,941 1,362,941 1,410,695 47,754
Charges for services:
General government charges 158,050 158,050 180,198 22,148
Public safety charges 24,750 24,750 12,968 (11,782)
Community development fees 8,000 8,000 1,240 (6,760)
Recreation fees 257,700 257,700 232,707 (24,993)
Community Center fees 406,500 406,500 322,456 (84,044)
(105,431)
Total charges for services 855,000 855,000749,569
110
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 2 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Revenues (continued):
Fines and forfeits316,500$ 316,500$ 268,116$ (48,384)$
Miscellaneous:
Investment earnings (net of market value change)46,787 46,787 62,276 15,489
Other106,725 106,725 142,800 36,075
Total miscellaneous153,512 153,512 205,076 51,564
Total revenues19,252,601 19,252,601 19,173,263 (79,338)
EXPENDITURES
General government:
Mayor and council:
Current:
Personal services53,260 53,260 49,638 3,622
Supplies350 350 860 (510)
Services and other charges68,400 68,400 72,587 (4,187)
Total mayor and council122,010 122,010 123,085 (1,075)
Administrative (Manager, Clerk, HR) offices:
Current:
Personal services766,534 766,534 789,808 (23,274)
Supplies3,150 3,150 4,311 (1,161)
Services and other charges99,975 99,975 63,746 36,229
Total administrative office869,659 869,659 857,865 11,794
Elections and voter registration:
Current:
Personal services72,430 72,430 63,373 9,057
Supplies900 900 1,896 (996)
Services and other charges16,700 16,700 10,440 6,260
Total elections and voter registration90,030 90,030 75,709 14,321
Finance:
Current:
Personal services487,859 487,859 471,421 16,438
Supplies 4,700 4,700 3,335 1,365
Services and other charges 56,300 56,300 49,644 6,656
Total finance 548,859 548,859 524,400 24,459
Assessing
Current:
Supplies 300 300 43 257
Services and other charges 200,800 200,800 202,400 (1,600)
Total assessing 201,100 201,100 202,443 (1,343)
Legal:
Current:
Services and other charges 472,000 472,000 427,511 44,489
111
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 3 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Expenditures (continued):
General government (continued):
Government buildings:
Current:
Personal services250,241$ 250,241$ 235,510$ 14,731$
Supplies66,550 66,550 47,066 19,484
Services and other charges518,667 518,667 418,759 99,908
Total current835,458 835,458 701,335 134,123
Capital outlay22,500 22,500 8,253 14,247
Total government buildings857,958 857,958 709,588 148,370
Information technology:
Current:
Personal services229,880 229,880 226,259 3,621
Supplies4,500 4,500 4,997 (497)
Services and other charges254,263 254,263 216,475 37,788
Total information technology488,643 488,643 447,731 40,912
Total general government3,650,259 3,650,259 3,368,332 281,927
Public safety:
Police protection:
Current:
Personal services6,596,957 6,596,957 6,267,711 329,246
Supplies119,905 119,905 152,548 (32,643)
Services and other charges1,128,373 1,128,373 1,070,275 58,098
Total current7,845,235 7,845,235 7,490,534 354,701
Capital outlay42,000 42,000 9,774 32,226
Total police protection7,887,235 7,887,235 7,500,308 386,927
Fire protection:
Current:
760,563
Personal services 760,563 693,14167,422
Supplies 75,300 75,300 74,799 501
Services and other charges 331,864 331,864 317,88913,975
Total current 1,167,727 1,167,727 1,085,829 81,898
Capital outlay 15,000 15,000 13,916 1,084
Total fire protection 1,182,727 1,182,727 1,099,745 82,982
Protective inspection:
Current:
Personal services 967,117 967,117 929,220 37,897
Supplies 16,000 16,000 20,062 (4,062)
Services and other charges 249,893 249,893 180,970 68,923
Total current 1,233,010 1,233,010 1,130,252 102,758
Capital outlay 50,000 50,000 - 50,000
Total protective inspection 1,283,010 1,283,010 1,130,252 152,758
Emergency preparedness:
Current:
Personal services 73,671 73,671 74,144 (473)
Supplies 4,350 4,350 - 4,350
Services and other charges 5,300 5,300 4,728 572
Total emergency preparedness 83,321 83,321 78,872 4,449
Total public safety 10,436,293 10,436,293 9,809,177 627,116
112
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 4 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Expenditures (continued):
Public works:
Engineering department:
Current:
Personal services774,653$ 774,653$ 684,065$ 90,588$
Supplies3,625 3,625 3,160 465
Services and other charges60,240 60,240 50,949 9,291
Total current838,518 838,518 738,174 100,344
Capital outlay4,000 4,000 3,893 107
Total engineering department842,518 842,518 742,067 100,451
Street department:
Current:
Personal services805,073 805,073 780,854 24,219
Supplies132,330 132,330 105,255 27,075
Services and other charges731,409 731,409 628,645 102,764
Total street department1,668,812 1,668,812 1,514,754 154,058
Total public works2,511,330 2,511,330 2,256,821 254,509
Community services:
Social services:
Current:
Services and other charges161,000 161,000 135,604 25,396
Parks and recreation:
Administration:
Current:
Personal services215,361 215,361 220,210 (4,849)
Services and other charges4,265 4,265 1,712 2,553
Total administration219,626 219,626 221,922 (2,296)
Recreation programs:
Current:
Personal services515,722 515,722 504,471 11,251
Supplies42,020 42,020 35,408 6,612
Services and other charges 177,142 177,142 167,516 9,626
Total recreation programs 734,884 734,884 707,395 27,489
Community center:
Current:
Personal services 335,537 335,537 266,98268,555
Supplies 25,750 25,750 80,152 (54,402)
Services and other charges 200,700 200,700 187,35713,343
Total current 561,987 561,987 534,491 27,496
Capital outlay 23,000 23,000 3,270 19,730
Total community center 584,987 584,987 537,761 47,226
113
CITY OF BROOKLYN CENTER, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND Page 5 of 5
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Variance with
Final Budget -
Budgeted AmountsActualPositive
OriginalFinalAmounts(Negative)
Expenditures (continued):
Parks and recreation (continued):
Park maintenance:
Current:
Personal services632,448$ 632,448$ 610,619$ 21,829$
Supplies53,805 53,805 54,674 (869)
Services and other charges422,651 422,651 359,889 62,762
Total park maintenance1,108,904 1,108,904 1,025,182 83,722
Total parks and recreation2,648,401 2,648,401 2,492,260 156,141
Economic development:
Convention bureau:
Current:
Services and other charges418,000 418,000 510,827 (92,827)
Nondepartmental:
Expenditures not charged to departments:
Current:
Personal services(150,000) (150,000) - (150,000)
Supplies21,500 21,500 19,175 2,325
Services and other charges532,753 532,753 430,954 101,799
Total current404,253 404,253 450,129 (45,876)
Total expenditures20,229,536 20,229,536 19,023,150 1,206,386
Excess (deficiency) of revenues
over (under) expenditures(976,935) (976,935) 150,113 1,127,048
OTHER FINANCING SOURCES (USES)
Transfers in150,000 150,000 201,684 51,684
Transfers in - administrative services reimbursed1,014,324 1,014,324 975,352 (38,972)
Transfers out(187,389) (187,389) (1,176,313) (988,924)
Total other financing sources (uses)976,935 976,935 723 (976,212)
150,836 150,836
Net change in fund balance- -
Fund balance - January 1 11,020,081 11,020,081 11,020,081 -
Fund balance - December 31$11,020,081$11,020,081$11,170,917$150,836
114
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - HOUSING AND REDEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Taxes:
Property taxes280,460$ 280,460$ 274,058$
OTHER FINANCING SOURCES (USES)
Transfers out(280,460) (280,460) (274,363)
Net change in fund balance- - (305)
Fund balance - January 11,478 1,478 1,478
Fund balance - December 311,478$ 1,478$ 1,173$
115
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental-$ -$ 829,851$
Investment earnings (net of market value adjustment)5,754 5,754 8,316
Miscellaneous- - 4,965
Total revenues5,754 5,754 843,132
EXPENDITURES
Current:
Economic development:
Personal services289,891 289,891 277,278
Supplies850 850 585
Services and other charges146,242 146,242 859,444
Total expenditures436,983 436,983 1,137,307
Excess (deficiency) of revenues
over (under) expenditures(431,229) (431,229) (294,175)
OTHER FINANCING SOURCES
Transfers in425,428 425,428 274,363
Net change in fund balance(5,801) (5,801) (19,812)
Fund balance - January 11,535,743 1,535,743 1,535,743
Fund balance - December 311,529,942$ 1,529,942$ 1,515,931$
116
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental150,000$ 150,000$ 368,388$
EXPENDITURES
Current:
Economic development:
Services and other charges- - 180,741
Excess of revenues
over expenditures150,000 150,000 187,647
OTHER FINANCING SOURCES (USES)
Transfers out(150,000) (150,000) (188,100)
Net change in fund balance- - (453)
Fund balance - January 1- - -
Fund balance - December 31-$ -$ (453)$
117
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURES
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Fines and forfeitures32,000$ 32,000$ 23,566$
Investment earnings (net of market value adjustment)267 267 836
Total revenues32,267 32,267 24,402
EXPENDITURES
Current:
Public safety:
Supplies65,500 65,500 35,163
Services and other charges2,100 2,100 1,350
Capital outlay:
Public safety:- - 2,524
Total expenditures67,600 67,600 39,037
Net change in fund balance(35,333) (35,333) (14,635)
Fund balance - January 198,321 98,321 98,321
Fund balance - December 3162,988$ 62,988$ 83,686$
118
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 2
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Tax increments$ -$ -$ (58,754)
Intergovernmental - - 25,400
Investment earnings (net of market value adjustment) 1,975 1,975 783
Miscellaneous 8,576 8,576 21,007
Total revenues 10,551 10,551 (11,564)
EXPENDITURES
Current:
Economic development:
Services and other charges - - 21,655
Net change in fund balance 10,551 10,551 (33,219)
Fund balance - January 1 2,584,489 2,584,489 2,584,489
Fund balance - December 31$2,595,040$ 2,595,040$2,551,270
119
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 3
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Tax increments2,976,947$ 2,976,947$ 2,953,728$
Charges for services- - 177,213
Investment earnings (net of market value adjustment)9,939 9,939 19,833
Miscellaneous- - 21,874
Total revenues2,986,886 2,986,886 3,172,648
EXPENDITURES
Current:
Economic development:
Services and other charges8,000 8,000 1,483,476
Excess of revenues
over expenditures2,978,886 2,978,886 1,689,172
OTHER FINANCING SOURCES (USES)
Sale of assets- - 4,820
Transfers out(2,497,331) (2,497,331) (2,395,982)
Total other financing sources (uses)(2,497,331) (2,497,331) (2,391,162)
Net change in fund balance481,555 481,555 (701,990)
Fund balance - January 117,898,749 17,898,749 17,898,749
Fund balance - December 3118,380,304$ 18,380,304$ 17,196,759$
120
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 4
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Tax increments466,341$ 466,341$ 420,807$
Investment earnings (net of market value adjustment)566 566 558
Total revenues466,907 466,907 421,365
EXPENDITURES
Current:
Economic development:
Services and other charges454,683 454,683 640,137
Excess (deficiency) of revenues
over (under) expenditures12,224 12,224 (218,772)
OTHER FINANCING SOURCES (USES)
Transfers out(10,000) (10,000) -
Net change in fund balance2,224 2,224 (218,772)
Fund balance - January 1265,419 265,419 265,419
Fund balance - December 31267,643$ 267,643$ 46,647$
121
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - TAX INCREMENT DISTRICT NO. 5
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Tax increments435,437$ 435,437$ 353,417$
Investment earnings (net of market value adjustment)816 816 458
Total revenues436,253 436,253 353,875
EXPENDITURES
Current:
Economic development:
Services and other charges400,469 400,469 1,295,482
Excess (deficiency) of revenues
over (under) expenditures35,784 35,784 (941,607)
OTHER FINANCING SOURCES (USES)
Transfers out(34,968) (34,968) -
Net change in fund balance816 816 (941,607)
Fund balance (deficit) - January 1(1,299,859) (1,299,859) (1,299,859)
Fund balance (deficit) - December 31(1,299,043)$ (1,299,043)$ (2,241,466)$
122
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CITY INITIATIVES GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental127,516$ 127,516$ 295,035$
Charges for services9,375 9,375 6,952
Investment earnings (net of market value adjustment)1,273 1,273 2,818
Miscellaneous11,625 11,625 33,182
Total revenues149,789 149,789 337,987
EXPENDITURES
Current:
Public safety:
Personal services60,000 60,000 162,649
Supplies1,000 1,000 13,231
Services and other charges1,000 1,000 6,595
Parks and recreation:
Personal services13,029 13,029 23,360
Supplies8,850 8,850 20,952
Services and other charges18,595 18,595 31,336
Capital outlay:
Public safety - - 16,486
Parks and recreation200,000 200,000 -
Total expenditures302,474 302,474 274,609
Excess (deficiency) of revenues
over (under) expenditures(152,685) (152,685) 63,378
OTHER FINANCING SOURCES (USES)
Transfers out- - (13,584)
Net change in fund balance(152,685) (152,685) 49,794
Fund balance - January 1374,419 374,419 374,419
Fund balance - December 31221,734$ 221,734$ 424,213$
123
CITY OF BROOKLYN CENTER, MINNESOTA
SPECIAL REVENUE FUND - CENTENNIAL AMPHITHEATER
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Investment earnings (net of market value adjustment)$ 602$ 602$ 983
Miscellaneous - - 13,075
Total revenues602 602 14,058
EXPENDITURES
Current:
Parks and recreation:
Supplies- - 8,384
Services and other charges- - 56,287
Capital outlay:
Parks and recreation588,500 588,500 568,254
Total expenditures588,500 588,500 632,925
Excess (deficiency) of revenues
over (under) expenditures(587,898) (587,898) (618,867)
OTHER FINANCING SOURCES (USES)
Transfers in 345,000 345,000 309,319
Net change in fund balance(242,898) (242,898) (309,548)
Fund balance - January 1 309,548 309,548 309,548
Fund balance - December 3166,650$ 66,650$ -$
124
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Property taxes396,496$ 396,496$ 389,705$
Special assessments848,329 848,329 1,120,946
Investment earnings (net of market value adjustment)5,601 5,601 8,203
Total revenues1,250,426 1,250,426 1,518,854
EXPENDITURES
Debt service:
Principal3,025,000 3,025,000 3,025,000
Interest826,053 826,053 826,053
Fiscal agent fees10,500 10,500 9,838
Bond issuance costs- - 71,102
Total expenditures3,861,553 3,861,553 3,931,993
Excess (defiency) of revenues
over (under) expenditures(2,611,127) (2,611,127) (2,413,139)
OTHER FINANCING SOURCES
Transfers in 2,398,332 2,398,332 2,395,982
Issuance of debt- - 6,600,000
Premium on issuance of debt- - 255,630
Total other financing sources2,398,332 2,398,332 9,251,612
Net change in fund balance(212,795) (212,795) 6,838,473
Fund balance - January 11,909,441 1,909,441 1,909,441
Fund balance - December 311,696,646$ 1,696,646$ 8,747,914$
125
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL IMPROVEMENTS
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Property taxes-$ -$ (5,206)$
Intergovernmental1,010,076 1,010,076 747,076
Charges for services- - 188
Special assessments- - 157
Investment earnings (net of market value adjustment)114 114 43,389
Miscellaneous- - 116,500
Total revenues1,010,190 1,010,190 902,104
EXPENDITURES
Current:
General government- - 161,315
Parks and recreation- - 161,315
Capital outlay:
General government- - 699,384
Parks and recreation656,000 656,000 2,841,338
Total expenditures656,000 656,000 3,863,352
Excess (deficiency) of revenues
over (under) expenditures354,190 354,190 (2,961,248)
OTHER FINANCING SOURCES (USES)
Transfers in450,000 450,000 1,125,216
Transfers out(300,000) (300,000) (264,319)
Total other financing sources (uses)150,000 150,000 860,897
Net change in fund balance504,190 504,190 (2,100,351)
Fund balance - January 16,509,230 6,509,230 6,509,230
Fund balance - December 317,013,420$ 7,013,420$ 4,408,879$
126
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - MUNICIPAL STATE AID FOR CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Intergovernmental887,992$ 887,992$ 1,072,031$
Investment earnings (net of market value adjustment)3,570 3,570 15,230
Total revenues891,562 891,562 1,087,261
EXPENDITURES
Current:
Public works:
Supplies44,000 44,000 43,981
Services and other charges66,000 66,000 66,000
Capital outlay:
Public works2,560,000 2,560,000 2,583,849
Total expenditures2,670,000 2,670,000 2,693,830
Net change in fund balance(1,778,438) (1,778,438) (1,606,569)
Fund balance - January 11,830,100 1,830,100 1,830,100
Fund balance - December 3151,662$ 51,662$ 223,531$
127
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - CAPITAL RESERVE EMERGENCY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Investment earnings (net of market value adjustment)6,948$ 6,948$ 8,406$
Net change in fund balance6,948 6,948 8,406
Fund balance - January 11,066,216 1,066,216 1,066,216
Fund balance - December 311,073,164$ 1,073,164$ 1,074,622$
128
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - INFRASTRUCTURE CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Special assessments767,129$ 767,129$ 445,822$
Charges for services- - 33,785
Miscellaneous- - 76,172
Total revenues767,129 767,129 555,779
EXPENDITURES
Current:
Public works
Supplies- - 142
Services and other charges1,595 1,595 44,791
Capital outlay:
Public works1,370,000 1,370,000 1,455,128
Debt service:
Bond issuance costs- - 17,769
Total expenditures1,371,595 1,371,595 1,517,830
Excess (deficiency) of revenues
over (under) expenditures(604,466) (604,466) (962,051)
OTHER FINANCING SOURCES
Issuance of debt1,370,000 1,370,000 1,222,708
Premium on issuance of debt- - 19,391
Total other financing sources (uses)1,370,000 1,370,000 1,242,099
Net change in fund balance765,534 765,534 280,048
Fund balance (deficit) - January 1(463,193) (463,193) (463,193)
Fund balance (deficit) - December 31302,341$ 302,341$ (183,145)$
129
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - STREET RECONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Franchise fees650,000$ 650,000$ 653,648$
Investment earnings (net of market value adjustment)13,493 13,493 30,877
Total revenues663,493 663,493 684,525
EXPENDITURES
Capital outlay:
Public works2,150,000 2,150,000 2,241,978
Debt service:
Bond issuance costs- - 28,509
Total expenditures2,150,000 2,150,000 2,270,487
Excess (deficiency) of revenues
over (under) expenditures(1,486,507) (1,486,507) (1,585,962)
OTHER FINANCING SOURCES
Issuance of debt- - 2,193,540
Premium on issuance of debt 34,788
Total other financing sources- - 2,228,328
Net change in fund balance(1,486,507) (1,486,507) 642,366
Fund balance - January 12,541,388 2,541,388 2,541,388
Fund balance - December 311,054,881$ 1,054,881$ 3,183,754$
130
CITY OF BROOKLYN CENTER, MINNESOTA
CAPITAL PROJECT FUND - TECHNOLOGY
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Investment earnings (net of market value adjustment)53$ 53$ 206$
EXPENDITURES
Current:
General government:
Supplies48,675 48,675 16,365
Services and other charges20,000 20,000 -
Capital outlay:
General government59,000 59,000 27,723
Total expenditures127,675 127,675 44,088
Excess (deficiency) of revenues
over (under) expenditures(127,622) (127,622) (43,882)
OTHER FINANCING SOURCES
Transfers in140,000 140,000 235,020
Net change in fund balance12,378 12,378 191,138
Fund balance - January 123,618 23,618 23,618
Fund balance - December 3135,996$ 35,996$ 214,756$
131
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING BALANCE SHEET
DEBT SERVICE FUND BY ACCOUNT
December 31, 2015
GeneralGeneralGeneralGeneral
ObligationObligationObligationObligation
ImprovementImprovementImprovementImprovement
BondsBondsBondsBonds
2004C2006A2008B2013B
ASSETS
Cash and investments1,642$ 248,806$ 679,397$ 676,258$
Cash with fiscal agents- - - -
Receivables:
Current taxes- - - 1,643
Special assessments614 49,929 451,292 1,226,247
Total assets2,256 298,735 1,130,689 1,904,148
LIABILITIES
Accounts payable - - 450 425
Due to other governments - - 85,530 -
Total liabilities - - 85,980 425
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - special assessments 614 48,584 451,292 1,224,593
FUND BALANCES (DEFICITS)
Restricted for debt service 1,642 250,151 593,417 679,130
Unassigned - - - -
Total fund balances (deficits) 1,642 250,151 593,417 679,130
Total liabilities, deferred inflows of
resources and fund balances (deficits)$2,256$298,735$ 1,130,689$1,904,148
132
GeneralTax
ObligationIncrementTaxTaxTax
ImprovementRefundingIncrementIncrementIncrementTotal
BondsBondsBondsBondsBondsDebt
2015A2015B2013A2008A2004DService
$ 439,471$ -$ -$ -$ 2,447$ 2,048,021
111,100- - 6,670,981- 6,782,081
- - - - - 1,643
1,193,805 - - - 2,921,887-
1,633,276 111,100 - 6,673,428-11,753,632
- - 425 - - 1,300
- - - - - 85,530
- - 425 - - 86,830
1,193,805 - - - 2,918,888-
439,471 111,100 - 6,673,428- 8,748,339
- - (425) - - (425)
439,471 111,100 (425) 6,673,428- 8,747,914
$ 1,633,276$ 111,100$ -$ 6,673,428-$$11,753,632
133
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
DEBT SERVICE FUND BY ACCOUNT
For the Year Ended December 31, 2015
GeneralGeneralGeneralGeneral
ObligationObligationObligationObligation
ImprovementImprovementImprovementImprovement
BondsBondsBondsBonds
2004C2006A2008B2013B
S
REVENUE
Property taxes$ -$ -$ 389,705-$
Special assessments 5,022 104,965 218,612 354,081
Investment earnings (net of market value adjustment) 7 1,396 4,018 1,577
Total revenues 5,029 106,361 222,630 745,363
S
EXPENDITURE
Debt service:
Principal90,000 135,000 240,000 805,000
Interest1,643 9,908 40,145 135,525
Fiscal agent fees- 3,640 1,558 2,890
Bond issuance costs- - - -
Total expenditures91,643 148,548 281,703 943,415
Excess (deficiency) of revenues
over (under) expenditures(86,614) (42,187) (59,073) (198,052)
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Issuance of debt - - - -
Premium on issuance of debt - - - -
Total other financing sources - - - -
Net change in fund balances (86,614) (42,187) (59,073) (198,052)
Fund balances (deficits) - January 1 88,256 292,338 652,490 877,182
Fund balances (deficits) - December 31$1,642$250,151$ 593,417$679,130
134
GeneralTax
ObligationIncrementTaxTaxTax
ImprovementRefundingIncrementIncrementIncrementTotal
BondsBondsBondsBondsBondsDebt
2015A2015B2013A2008A2004DService
$ -$ -$ -$ -$ 389,705-$
438,266 - - - 1,120,946-
1,205 - - - - 8,203
439,471 - - - 1,518,854-
- 250,000- 125,000 1,380,000 3,025,000
- 176,438- 22,844 439,550 826,053
- - 850 450 450 9,838
- - - - 71,102 71,102
- 427,288- 148,294 1,891,102 3,931,993
439,471 (427,288)- (148,294) (1,891,102) (2,413,139)
- 427,138- 148,569 1,820,275 2,395,982
111,100- - 6,488,900- 6,600,000
- - - 255,630- 255,630
111,100- 427,138 148,569 8,564,8059,251,612
439,471 111,100 (150) 275 6,673,703 6,838,473
- - (275) (275) (275) 1,909,441
$ 439,471$ 111,100$ (425)$ 6,673,428-$$8,747,914
135
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2004C
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Special assessments103,995$ 103,995$ 5,022$
Investment earnings (net of market value adjustment)626 626 7
Total revenues104,621 104,621 5,029
EXPENDITURES
Debt service:
Principal90,000 90,000 90,000
Interest1,643 1,643 1,643
Fiscal agent fees1,500 1,500 -
Total expenditures93,143 93,143 91,643
Net change in fund balance11,478 11,478 (86,614)
Fund balance - January 188,256 88,256 88,256
Fund balance - December 3199,734$ 99,734$ 1,642$
136
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2006A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Special assessments161,647$ 161,647$ 104,965$
Investment earnings (net of market value adjustment)1,334 1,334 1,396
Total revenues162,981 162,981 106,361
EXPENDITURES
Debt service:
Principal135,000 135,000 135,000
Interest9,908 9,908 9,908
Fiscal agent fees1,500 1,500 3,640
Total expenditures146,408 146,408 148,548
Net change in fund balance16,573 16,573 (42,187)
Fund balance - January 1292,338 292,338 292,338
Fund balance - December 31308,911$ 308,911$ 250,151$
137
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2008B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Special assessments308,810$ 308,810$ 218,612$
Investment earnings (net of market value adjustment)2,825 2,825 4,018
Total revenues311,635 311,635 222,630
EXPENDITURES
Debt service:
Principal240,000 240,000 240,000
Interest40,145 40,145 40,145
Fiscal agent fees1,500 1,500 1,558
Total expenditures281,645 281,645 281,703
Net change in fund balance29,990 29,990 (59,073)
Fund balance - January 1652,490 652,490 652,490
Fund balance - December 31682,480$ 682,480$ 593,417$
138
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2013B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Property taxes396,496$ 396,496$ 389,705$
Special assessments273,877 273,877 354,081
Investment earnings (net of market value adjustment)816 816 1,577
Total revenues671,189 671,189 745,363
EXPENDITURES
Debt service:
Principal805,000 805,000 805,000
Interest135,525 135,525 135,525
Fiscal agent fees1,500 1,500 2,890
Total expenditures942,025 942,025 943,415
Net change in fund balance(270,836) (270,836) (198,052)
Fund balance - January 1877,182 877,182 877,182
Fund balance - December 31606,346$ 606,346$ 679,130$
139
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. IMPROVEMENT BONDS, 2015A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
REVENUES
Special assessments-$ -$ 438,266$
Investment earnings (net of market value adjustment)- - 1,205
Total revenues- - 439,471
Net change in fund balance - - 439,471
Fund balance - January 1 - - -
Fund balance - December 31$-$ -$439,471
140
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT REFUNDING BONDS, 2015B
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted Amounts
Actual
OriginalFinalAmounts
OTHER FINANCING SOURCES
Issuance of debt-$ -$ 111,100$
Net change in fund balance- - 111,100
Fund balance - January 1- - -
Fund balance - December 31-$ -$ 111,100$
141
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2013A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
EXPENDITURES
Debt service:
Principal250,000$ 250,000$ 250,000$
Interest176,438 176,438 176,438
Fiscal agent fees1,500 1,500 850
Total expenditures427,938 427,938 427,288
OTHER FINANCING SOURCES
Transfers in427,938 427,938 427,138
Net change in fund balance- - (150)
Fund balance (deficit) - January 1(275) (275) (275)
Fund balance (deficit) - December 31(275)$ (275)$ (425)$
142
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2008A
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
EXPENDITURES
Debt service:
Principal125,000$ 125,000$ 125,000$
Interest22,844 22,844 22,844
Fiscal agent fees1,500 1,500 450
Total expenditures149,344 149,344 148,294
OTHER FINANCING SOURCES
Transfers in149,344 149,344 148,569
Net change in fund balance- - 275
Fund balance (deficit) - January 1(275) (275) (275)
Fund balance (deficit) - December 31(275)$ (275)$ -$
143
CITY OF BROOKLYN CENTER, MINNESOTA
DEBT SERVICE FUND - G.O. TAX INCREMENT BONDS, 2004D
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For the Year Ended December 31, 2015
Budgeted AmountsActual
OriginalFinalAmounts
EXPENDITURES
Debt service:
Principal1,380,000$ 1,380,000$ 1,380,000$
Interest439,550 439,550 439,550
Fiscal agent fees1,500 1,500 71,552
Total expenditures1,821,050 1,821,050 1,891,102
OTHER FINANCING SOURCES
Transfers in1,821,050 1,821,050 1,820,275
Issuance of debt- - 6,488,900
Premium on issuance of debt- - 255,630
Total other financing sources1,821,050 1,821,050 8,564,805
Net change in fund balance- - 6,673,703
Fund balance (deficit) - January 1(275) (275) (275)
Fund balance (deficit) - December 31(275)$ (275)$ 6,673,428$
144
CITY OF BROOKLYN CENTER, MINNESOTA
INTERNAL SERVICE FUNDS
Internal service funds are used to account for and report financial resources for the purchase of goods or services
rovided by one department to other departments of the City on a cost reimbursement basis.
p
Central Garage
This fund was established to account for the acquisition and maintenance of all City vehicles and rolling stock
equipment. Vehicle and equipment maintenance and repair costs are charged to the departments as incurred.
Replacement costs are charged to the departments over the estimated useful life of the vehicles and equipment.
Employees (EE) Retirement Benefits
This fund accounts for certain health care insurance benefits for City employees who retire before age 65.
Substantially all of the City's full-time police and fire employees and all other full-time employeers hired befor
e
July 1, 1989 may be eligible for those benefits from the time they qualify for an unreduced PERA pension, until
they reach age 65 or become eligible for Medicare. In the event that future costs would exceed earnings, other
funds would be charged for the costs associated with their employees.
Employees (EE) Compensated Absences
This fund accounts for payment of unused vacation and vested sick leave benefits, and the allocation of such
costs to the respective departments and funds of the City.
Pension - GERF
This fund was established to account for the net pension liability and related expense recorded with the adoption
of GASB 68 related to the PERA Coordinated plan, and the allocation of such costs to the respective departments
and funds of the City.
Pension - PEPFF
This fund was established to account for the net pension liability and related expense recorded with the adoption
of GASB 68 related to the PERA Police and Fire plan, and the allocation of such costs to the repsective
departments and funds of the City.
145
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
December 31, 2015
Total
CentralEE RetirementEE CompPension -Pension - Internal
GarageBenefitAbsencesGERFPEPFFService
ASSETS
Current assets:
Cash and cash equivalents4,409,948$ 565,856$ 1,254,851$ -$ -$ 6,230,655$
Receivables:
Accounts - net35,557 - - - - 35,557
Due from other governments19,270 - - - - 19,270
Inventories16,795 - - - - 16,795
Total current assets4,481,570 565,856 1,254,851 - - 6,302,277
Noncurrent assets:
Capital assets:
Land improvements166,108 - - - - 166,108
Machinery and equipment9,181,885 - - - - 9,181,885
Total capital assets9,347,993 - - - - 9,347,993
Less: accumulated depreciation(5,456,463) - - - - (5,456,463)
Net capital assets3,891,530 - - - - 3,891,530
Total noncurrent assets3,891,530 - - - - 3,891,530
Total assets8,373,100 565,856 1,254,851 - - 10,193,807
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension resources- - - 898,910 1,308,212 2,207,122
LIABILITIES
Current liabilities:
Accounts payable34,163----34,163
Accrued salaries and wages4,012126---4,138
Due to other governments48----48
Compensated absences payable--125,485- 125,485-
Total current liabilities38,223126125,485- 163,834-
Noncurrent liabilities:
Compensated absences payable- 1,129,366-- 1,129,366-
Net OPEB obligation 710,605--- 710,605-
Net pension liability-- 6,441,872-5,067,60411,509,476
Total noncurrent liabilities 710,605-1,129,3666,441,8725,067,60413,349,447
Total liabilities38,223710,7311,254,8516,441,8725,067,60413,513,281
DEFERRED INFLOWS OF RESOURCES
Deferred pension resources-- 839,156-821,8001,660,956
NET POSITION
Net investment in capital assets3,891,530--- 3,891,530-
Unrestricted4,443,347(144,875) (6,382,118)-(4,581,192)(6,664,838)
Total net position$8,334,877$(144,875)$ (6,382,118)-$$(4,581,192)$(2,773,308)
146
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Total
CentralEE RetirementEE CompPension -Pension - Internal
GarageBenefitAbsencesGERFPEPFFService
OPERATING REVENUES
Sales and user fees1,634,345$ -$ 136,503$ 564,168$ 687,935$ 3,022,951$
OPERATING EXPENSES
Personal services364,264 204,026 146,530 685,060 879,371 2,279,251
Supplies405,086 - - - - 405,086
Other services160,554 - - - - 160,554
Insurance56,693 - - - - 56,693
Utilities895 - - - - 895
Depreciation761,629 - - - - 761,629
Total operating expenses1,749,121 204,026 146,530 685,060 879,371 3,664,108
Operating income (loss)(114,776) (204,026) (10,027) (120,892) (191,436) (641,157)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental- 8,606 - - 40,140 48,746
Investment earnings (net of market value adjustment)36,407 4,760 10,027 - - 51,194
Gain on sale of capital assets27,800 - - - - 27,800
Loss on sale of capital assets(18,175) - - - - (18,175)
Other revenue40,121 --- 40,121-
Total nonoperating revenues86,153 13,366 10,027 - 40,140 149,686
Income (loss) before transfers(28,623) (190,660) - (120,892) (151,296) (491,471)
Transfers in7,389 - - - - 7,389
Change in net position(21,234) (190,660) - (120,892) (151,296) (484,082)
Net position - January 18,356,111 45,785 - - - 8,401,896
Change in Accounting Principle - pension- - - (6,261,226) (4,429,896) (10,691,122)
Net position - January 1, restated8,356,111 45,785 - (6,261,226) (4,429,896) (2,289,226)
Net position - December 318,334,877$ (144,875)$ -$ (6,382,118)$ (4,581,192)$ (2,773,308)$
147
CITY OF BROOKLYN CENTER, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2015
Total
CentralEE RetirementEE CompPension -Pension - Internal
GarageBenefitAbsencesGERFPEPFFService
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from interfund services provided$ 1,597,836$ 136,503-$ $ 564,168$ 687,935$ 2,986,442
Other operating receipts 40,121 - - - - 40,121
Payments to suppliers (538,525) - - - (538,525)-
Payments to employees (374,748) (122,546) (173,772) (564,168) (687,935) (1,923,169)
Net cash flows provided (used) by
operating activities 724,684 (122,546) (37,269) - - 564,869
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Intergovernmental - 8,606 - - - 8,606
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,082,843) - - - (1,082,843)-
Transfers in 7,389 - - - - 7,389
Proceeds from sale of assets 33,978 - - - - 33,978
Net cash flows provided (used) by capital
and related financing activities (1,041,476) - - - (1,041,476)-
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 36,407 4,760 10,027 - - 51,194
Net increase (decrease) in cash and cash equivalents (280,385) (109,180) (27,242) - (416,807)-
Cash and cash equivalents - January 1 4,690,333 675,036 1,282,093 - 6,647,462-
$ 6,230,655-$
Cash and cash equivalents - December 31$4,409,948$565,856$1,254,851$-
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) $ (114,776)$ (204,026)$ (10,027)$ (120,892)$ (191,436)$ (641,157)
Adjustments to reconcile operating income (loss)
to net cash flows provided (used) by operating activities:
Other income related to operations 40,121 - - - 40,140 80,261
Depreciation 761,629 - - - - 761,629
(Increase) decrease in assets:
Accounts receivable (36,509) - - - - (36,509)
Inventories 6,742 - - - - 6,742
(Increase) decrease in deferred outflows of resources:
Deferred pension resources - - (898,910)- (1,308,212) (2,207,122)
Increase (decrease) in liabilities:
Accounts payable 77,961 - - - - 77,961
Net pension liability 180,646 637,708 818,354
Accrued salaries and wages (10,484) 81,480 (27,242) - - 43,754
(Increase) decrease in deferred inflows of resources:
Deferred pension resources - - 839,156- 821,800 1,660,956
Net cash provided (used) by operating activitie$ (122,546)724,684$ (37,269)$$ -$-$564,869
s
NONCASH FINANCING ACTIVITIES
Acquisitions of capital assets on account$ 38,670$ -$ -$ -$ -$ 38,670
Capital asset trade-ins$ (24,353)$ -$ -$ -$ -$ (24,353)
Grants deposited with pension plan$ -$ -$ -$ -$ 40,140$ 40,140
Change in accounting principle for pensions$ -$ -$ (6,261,226)-$ $ (4,429,896)$ (10,691,122)
148
{ƷğƷźƭƷźĭğƌ{ĻĭƷźƚƓ
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 150
These tables contain trend information to help the reader understand the
City’s financial performance by placing it in historical perspective.
Revenue Capacity 164
These tables contain information to help the reader assess the City’s most
significant “own-source” revenue, property taxes.
Debt Capacity 170
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 177
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 179
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.
149
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
NET POSITION BY COMPONENT
Last ten fiscal years
(accrual basis of accounting)
2006200720082009
Governmental activities
Net investment in capital assets28,191,206$ 30,780,590$ 31,423,905$ 33,550,664$
Restricted27,637,465 21,738,515 31,850,784 29,027,991
Unrestricted4,055,312 8,061,157 690,424 4,082,990
Total governmental activities net position59,883,983$ 60,580,262$ 63,965,113$ 66,661,645$
Business-type activities
Investment in capital assets38,248,496$ 40,466,892$ 42,572,360$ 42,297,110$
Unrestricted7,973,318 9,845,252 10,466,919 8,835,644
Total business-type activities net position46,221,814$ 50,312,144$ 53,039,279$ 51,132,754$
Primary government
Net investment in capital assets66,439,702$ 71,247,482$ 73,996,265$ 75,847,774$
Restricted27,637,465 21,738,515 31,850,784 29,027,991
Unrestricted12,028,630 17,906,409 11,157,343 12,918,634
Total primary government net position106,105,797$ 110,892,406$ 117,004,392$ 117,794,399$
Sources: The data for this table has been extracted from the respective years CAFR document.
Fund Balance and Governmental Fund Type
Note: During 2011, the City implemented GASB Statement No. 54,
Definitions.
As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental
activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been
restated in this statistical schedule.
The City implemented GASB Statement No. 68 and GASB No. 71 in fiscal 2015. Years prior to 2015 have not been restated
150
Table 1
201020112012201320142015
$ 45,761,04240,978,165$ 45,261,629$ 42,281,203$ 42,947,577$ 47,941,800$
24,847,50722,067,726 24,259,292 27,219,086 28,061,977 36,810,593
4,376,3346,985,972 5,875,289 11,205,289 12,357,196 (5,495,836)
$ 74,984,88370,031,863$ 75,396,210$ 80,705,578$ 83,366,750$ 79,256,557$
$ 45,051,12842,800,624$ 42,406,210$ 42,466,488$ 48,537,132$ 47,201,239$
8,300,6598,673,168 11,856,924 12,208,126 6,819,765 8,452,630
$ 53,351,78751,473,792$ 54,263,134$ 54,674,614$ 55,356,897$ 55,653,869$
$ 90,812,17083,778,789$ 87,667,839$ 84,747,691$ 91,484,709$ 95,143,039$
24,847,50722,067,726 24,259,292 27,219,086 28,061,977 36,810,593
12,676,99315,659,140 17,732,213 23,413,415 19,176,961 2,956,794
$ 128,336,670121,505,655$ 129,659,344$ 135,380,192$ 138,723,647$ 134,910,426$
151
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED ON THE FOLLOWING PAGES
Last ten fiscal years
(accrual basis of accounting)
2006200720082009
GOVERNMENTAL ACTIVITIES
Expenses
General government2,936,638$ 2,953,328$ 3,498,767$ 3,653,956$
Public safety8,039,356 8,051,836 8,760,880 9,036,176
Public works2,087,259 2,704,435 2,596,754 2,687,980
Community services123,172 74,389 72,893 71,519
Parks and recreation2,565,364 2,624,897 2,910,825 2,773,528
Economic development2,567,377 3,966,908 3,713,340 2,151,916
Interest on long-term debt1,184,017 1,127,276 1,125,712 1,143,546
Total expenses
19,503,18321,503,069 22,679,17121,518,621
Program Revenues
Charges for services:
General government289,203 902,734 1,115,038 1,102,360
Public safety800,408 847,307 780,080 1,234,678
Public works259,273 241,035 127,489 26,027
Parks and recreation665,332 692,781 754,079 740,782
Economic development164,531 49,498 24,435 445
Operating grants and contributions748,888 818,989 1,003,884 1,034,905
Capital grants and contributions2,208,751 2,646,320 2,706,056 1,566,224
Total program revenues
6,198,6645,136,386 6,511,061 5,705,421
Net (expense) / revenue
(15,304,405)(14,366,797) (16,168,110) (15,813,200)
General Revenues and Transfers
Taxes:
Property12,276,896 12,200,575 12,458,724 12,899,250
Tax increments2,682,874 2,677,630 2,912,773 3,616,157
Lodging taxes 738,776 706,930 619,962 591,291
Unrestricted grants and contributions 702,030 1,263,753 607,073 1,019,990
Investment earnings (net) 1,928,462 1,852,117 903,939 309,715
Gain on disposal of capital asset 23,963 88,508 73,036 40,632
Transfers 303,286 (273,070) (1,693,225) 32,697
Transfers - capital assets - - - -
Total general revenues and transfers
18,656,28718,516,443 15,882,28218,509,732
Restatements for: prior period adjustments
or change in accounting principle
(2,518,476)(2,515,759) 3,670,679-
Change in Net Position
$1,771,014$696,279$ 3,384,851$2,696,532
152
Table 2
Page 1 of 3
201020112012201320142015
$ 3,216,3213,553,737$ 3,246,015$ 3,165,400$ 3,736,487$ 3,527,323$
9,268,8979,125,547 9,604,521 9,618,906 10,186,645 10,707,602
2,771,6022,747,641 3,561,914 4,215,855 3,688,238 3,867,406
100,84982,645 141,505 149,203 145,503 135,604
2,895,7692,732,401 2,796,561 2,752,539 2,977,707 3,053,328
2,542,5206,504,034 5,438,372 3,833,915 3,234,623 5,419,304
865,799974,950 768,241 490,162 887,190 723,000
25,720,955 21,661,757 25,557,12924,225,98024,856,39327,433,567
1,081,998 1,078,109 1,082,741 798,088 651,188 653,535
1,501,513 1,547,446 1,402,204 786,828 722,697 548,669
43,194 16,191 270,680 5,879 157,889 226,645
725,891 721,663 897,592 650,522 598,173 564,217
5,525 88,737 19,734 90,656 477,088 225,057
1,637,7432,013,099 3,165,588 3,089,220 1,746,637 2,605,477
6,627,7775,299,705 491,404 4,427,586 1,671,830 5,184,381
11,998,997 10,389,5947,329,9439,848,7796,025,50210,007,981
(13,721,958) (11,272,163) (18,227,186)(14,377,201)(18,830,891)(17,425,586)
12,949,069 13,336,056 14,307,993 14,943,008 14,988,007 15,320,998
3,127,373 2,525,057 2,751,249 3,098,620 3,790,363 3,805,367
696,746 852,302 882,620 881,252 914,651 1,075,425
411,378 549,649 496,679 590,916 1,499,015 1,670,928
33,885 191,510 85,560 (81,438) 236,936 254,366
- 111,530 113,976 54,211 27,100 27,800
(126,275) (749,308) 436 200,000 675,257 236,312
- - - - (639,266) (1,034,574)
17,092,176 16,816,796 18,638,51319,686,56921,492,06321,356,622
- --- (8,041,229)-
$ 3,370,218$ 5,544,633$411,327$5,309,368$2,661,172$(4,110,193)
153
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2006200720082009
BUSINESS-TYPE ACTIVITIES
Expenses
Municipal liquor970,260$ 1,037,427$ 1,125,517$ 1,249,946$
Golf course282,418 313,794 304,832 323,340
Earle Brown Heritage Center2,439,709 2,431,719 2,403,676 2,363,085
Water utility1,635,847 1,716,497 1,783,275 3,448,819
Sanitary sewer utility3,176,426 2,930,016 3,018,418 3,736,989
Storm drainage utility950,425 1,123,636 1,162,957 1,282,505
Recycling utility245,853 257,300 265,983 276,058
Street light utility161,219 191,659 182,402 220,020
Total expenses
9,862,15710,002,048 10,247,06012,900,762
Program Revenues
Charges for services:
Municipal liquor1,244,738 1,362,093 1,492,644 1,530,175
Earle Brown Heritage Center2,168,861 2,168,033 1,959,628 1,725,858
Water utility1,906,375 2,063,930 2,003,633 2,019,325
Sanitary sewer utility3,186,569 3,274,678 3,264,649 3,315,726
Storm drainage utility1,323,607 1,412,548 1,553,236 1,577,879
Other activities714,373 732,224 763,858 770,472
Operating grants and contributions- - - -
Capital grants and contributions- - - -
Total program revenues
11,013,50610,544,523 11,037,648 10,939,435
Net (expense) / revenue
682,3661,011,458790,588 (1,961,327)
General Revenues and Transfers
Investment earnings (net) 337,231 406,654 243,322 87,499
Transfers (303,286) 273,070 1,693,225 (32,697)
Transfers - capital assets - - - -
Total general revenues and transfers
33,945679,724 1,936,54754,802
Restatements for: prior period adjustments
or change in accounting principle
429,2062,399,148 --
Change in Net Position
$1,145,517$4,090,330$ 2,727,135$(1,906,525)
154
Table 2
Page 2 of 3
201020112012201320142015
$ 1,218,3991,262,076$ 1,274,375$ 5,674,937$ 5,690,792$ 5,816,363$
284,673317,539 273,023 263,425 271,698 270,307
2,602,0742,345,920 2,768,719 4,835,131 5,137,712 4,739,543
1,825,5581,792,628 1,855,345 2,025,496 1,900,518 2,179,892
3,277,8743,282,472 3,317,427 3,382,810 3,514,687 3,694,880
1,407,7121,348,974 1,501,652 1,552,327 1,784,907 1,883,154
284,440278,381 285,853 257,079 245,426 281,661
232,716213,752 222,835 289,043 291,239 292,282
10,841,742 11,133,446 11,499,22918,280,24818,836,97919,158,082
1,538,403 1,620,315 1,656,125 6,072,334 5,861,066 6,061,680
1,879,902 2,026,063 2,293,386 4,294,723 4,578,433 4,649,162
1,959,684 1,990,664 2,321,539 2,318,176 2,235,332 2,640,665
3,321,373 3,474,588 3,592,530 3,675,936 3,942,534 4,095,017
1,621,1041,575,679 1,660,849 1,622,012 1,638,575 1,635,655
760,757778,584 853,585 882,995 1,127,116 988,038
- - - 52,775 63,547 30,522
- 80,186 - - - -
11,035,798 11,591,504 12,378,01418,918,95119,446,60320,100,739
194,056 458,058 878,785 638,703 609,624 942,657
20,707 79,016 32,998 (27,223) 108,650 127,686
126,275 749,308 (436) (200,000) (675,257) (236,312)
- - - - 639,266 1,034,574
146,982 828,32432,562(227,223)72,659925,948
- --- (1,571,633)-
$ 341,038$ 1,286,382$911,347$411,480$682,283$296,972
155
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN NET POSITION - CONTINUED
Last ten fiscal years
(accrual basis of accounting)
2006200720082009
TOTAL PRIMARY GOVERNMENT
Expenses
Governmental activities19,503,183$ 21,503,069$ 22,679,171$ 21,518,621$
Business-type activities9,862,157 10,002,048 10,247,060 12,900,762
Total expenses
29,365,34031,505,117 32,926,23134,419,383
Program Revenues
Governmental activities5,136,386 6,198,664 6,511,061 5,705,421
Business-type activities10,544,523 11,013,506 11,037,648 10,939,435
Total program revenues
17,212,17015,680,909 17,548,709 16,644,856
Net (expense) / revenue
(14,292,947)(13,684,431) (15,377,522) (17,774,527)
General Revenues and Transfers
Governmental activities18,656,287 18,516,443 15,882,282 18,509,732
Business-type activities33,945 679,724 1,936,547 54,802
Total general revenues and transfers
19,196,16718,690,232 17,818,829 18,564,534
Restatements for: prior period adjustments
or change in accounting principle
Governmental activities(2,518,476) (2,515,759) 3,670,679 -
Business-type activities429,206 2,399,148 - -
Total restatements
(116,611)(2,089,270) 3,670,679 -
Change in Net Position
$ 4,786,6092,916,531$ 6,111,986$ 790,007$
Sources: The data for this table has been extracted from the respective years CAFR document.
Fund Balance and Governmental Fund Type
Note: During 2011, the City implemented GASB Statement No. 54,
Definitions.
As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental
activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been
restated in this statistical schedule.
The City implemented GASB Statement No. 68 and GASB No. 71 in fiscal 2015. Years prior to 2015 have not been restated
156
Table 2
Page 3 of 3
201020112012201320142015
$ 21,661,75725,720,955$ 25,557,129$ 24,225,980$ 24,856,393$ 27,433,567$
11,133,44610,841,742 11,499,229 18,280,248 18,836,979 19,158,082
32,795,20336,562,697 37,056,358 42,506,228 43,693,372 46,591,649
10,389,59411,998,997 7,329,943 9,848,779 6,025,502 10,007,981
11,591,50411,035,798 12,378,014 18,918,951 19,446,603 20,100,739
21,981,09823,034,795 19,707,957 28,767,730 25,472,105 30,108,720
(10,814,105)(13,527,902) (17,348,401) (13,738,498) (18,221,267) (16,482,929)
17,092,176 16,816,796 18,638,513 19,686,569 21,492,063 21,356,622
146,982 828,324 32,562 (227,223) 72,659 925,948
17,239,158 17,645,120 18,671,07519,459,34621,564,72222,282,570
- - - - (8,041,229)-
- - - - (1,571,633)-
- --- (9,612,862)-
$ 3,711,256$ 6,831,015$1,322,674$5,720,848$3,343,455$(3,813,221)
157
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 3
GOVERNMENTAL ACTIVITIES TAX REVENUE BY SOURCE
Last ten fiscal years
(accrual basis of accounting)
PropertyTaxLodging
TaxesIncrementsTaxesTotal
200612,276,896$ 2,682,874$ 738,776$ 15,698,546$
200712,200,575 2,677,630 706,930 15,585,135
200812,458,724 2,912,773 619,962 15,991,459
200912,899,250 3,616,157 591,291 17,106,698
201012,949,069 3,127,373 696,746 16,773,188
201113,336,056 2,525,057 852,302 16,713,415
201214,307,993 2,751,249 882,620 17,941,862
201314,943,008 3,098,620 881,252 18,922,880
201414,988,007 3,790,363 914,651 19,693,021
201515,320,998 3,805,367 1,075,425 20,201,790
Sources: The data for this table has been extracted from the respective years CAFR document.
158
159
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
2006200720082009
General Fund
Reserved500$ 700$ 21,995$ 27,993$
Unreserved7,508,690 7,941,714 7,721,443 8,502,012
Nonspendable- - - -
Restricted- - - -
Committed- - - -
Assigned- - - -
Unassigned- - - -
Total general fund7,509,190$ 7,942,414$ 7,743,438$ 8,530,005$
All other governmental funds
Reserved5,176,808$ 11,288,685$ 9,997,668$ 8,696,324$
Unreserved, reported in:
Special revenue funds22,862,211 11,738,460 10,523,743 9,399,556
Capital project funds4,164,400 3,466,029 4,282,881 3,609,961
Nonspendable- - - -
Restricted- - - -
Committed- - - -
Assigned- - - -
Unassigned- - - -
Total all other governmental funds32,203,419$ 26,493,174$ 24,804,292$ 21,705,841$
Sources: The data for this table has been extracted from the respective years CAFR document.
Fund Balance and Governmental Fund Type
Note: During 2011, the City implemented GASB Statement No. 54,
Definitions.
As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental
activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been
restated in this statistical schedule.
Note: The 2013 fund balances have been restated to align the City's reporting using GASB No. 65.
160
Table 4
201020112012201320142015
$ -26,405$ -$ -$ -$ -$
-8,803,942 - - - -
32,308- 88,952 26,139 21,967 78,859
-- - - - -
-- - - - -
2,614- - 2,754,124 908,761 804,815
9,695,913- 10,597,944 9,602,450 10,089,353 10,287,243
$ 9,730,8358,830,347$ 10,686,896$ 12,382,713$ 11,020,081$ 11,170,917$
$ -7,388,488$ -$ -$ -$ -$
-7,095,645 - - - -
-2,203,823 - - - -
-- - - - 1,500
13,331,705- 12,912,357 26,350,322 26,434,113 30,365,411
3,021,318- 3,651,995 7,579,688 10,514,871 9,306,224
--- - -
(2,515,053)- (3,425,001)(1,432,495) (1,763,877)(2,425,064)
$ 16,687,956$ 13,837,970$13,139,351$32,497,515$ 35,185,107$37,248,071
161
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last ten fiscal years
(modified accrual basis of accounting)
20062007200820092010
Revenues
Property taxes11,525,040$$12,094,359$12,403,914$12,897,002$13,012,317
Tax increments2,664,1442,727,6372,894,5953,601,7473,111,882
Franchise fees658,410658,620643,934656,772647,796
Lodging taxes738,776706,930619,962591,291696,746
Special assessments1,214,5711,364,4131,289,1481,352,9081,491,194
Licenses and permits722,633673,156643,736616,1351,063,945
Intergovernmental2,375,6973,171,7452,211,5602,789,0076,859,817
Charges for services722,218705,736761,4041,120,3411,001,019
Fines and forfeits256,600291,423302,986340,536359,937
Investment earnings (net)1,601,7311,519,503733,877247,26024,212
Miscellaneous477,296404,420449,061370,508285,425
Total revenue 24,317,94222,957,116 22,954,177 24,583,507 28,554,290
s
Expenditures
General government2,409,7882,508,9453,127,9173,427,0243,280,340
Public safety7,299,8427,550,4348,048,5298,452,3488,524,140
Public works1,717,1202,008,4991,784,3191,722,6801,662,343
Community services123,17274,38972,89371,51982,645
Parks and recreation2,212,1422,314,0992,409,2912,462,2752,442,938
Economic development1,386,5585,659,3317,666,3192,531,0623,105,007
Nondepartmental363,967354,848301,396313,723300,549
Capital outlay5,918,4724,524,5244,531,0032,820,7618,549,489
Debt service
Principal3,127,1462,786,0762,884,9534,445,4714,676,066
Interest1,197,3921,134,4121,060,1651,183,5601,026,800
Other charges53,67112,896101,80915,17014,104
Total expenditure 28,928,45325,809,270 31,988,594 27,445,593 33,664,421
s
Excess (deficiency) of revenue
s
over (under) expenditure(2,852,154)(4,610,511)(9,034,417)(2,862,086)(5,110,131)
s
Other financing sources (uses)
Transfers in2,784,1165,881,2571,969,5333,632,0134,888,536
Issuance of debt1,460,000-6,725,000--
Premium on issuance of debt--1,384--
Sale of capital assets-----
Refunded bonds redeemed-(529,138)---
Transfers out(2,211,209)(6,018,629)(1,549,358)(3,081,811)(4,495,948)
Total other financing sources (uses (666,510)2,032,907 7,146,559 550,202 392,588
)
Restatements for: prior period adjustments
or change in accounting principle-----
Net change in fund balance$ (5,277,021)(819,247)$ (1,887,858)$ (2,311,884)$ (4,717,543)$
s
Debt service as a percentage of
noncapital expenditure18.90%15.85%14.38%22.86%22.71%
s
Sources: The data for this table has been extracted from the respective years CAFR document.
Fund Balance and Governmental Fund Type
Note: During 2011, the City implemented GASB Statement No. 54,
Definitions.
As part of this implementation, certain reclassifications occurred for funds that were reported as Governmental
activities prior to 2011, that are now reported as business-type activities. Those balances prior to 2011 have not been
restated in this statistical schedule.
Note: The 2013 fund balances have been restated to align the City's reporting using GASB No. 65.
162
Table 5
20112012201320142015
$ 14,389,84213,396,611$ 15,094,464$ 15,036,602$ 15,115,171$
2,685,8222,527,316 3,149,533 3,795,708 3,669,198
647,346659,066 651,832 647,071 653,648
882,620852,302 881,252 914,651 1,075,425
1,294,5211,975,470 1,877,116 1,794,126 1,715,159
858,593961,947 1,084,003 1,021,410 859,534
3,607,2184,929,902 3,159,571 2,706,299 4,748,476
1,056,2411,122,350 1,073,917 1,229,513 967,707
336,740340,356 315,982 364,927 291,682
48,322143,661 (71,059) 188,913 203,172
742,269296,427 423,822 344,690 429,575
26,549,53427,205,408 27,640,433 28,043,910 29,728,747
2,978,7382,930,516 3,045,365 3,173,282 2,938,436
9,090,3248,674,195 9,117,541 9,622,239 10,004,475
1,982,5402,030,930 1,982,311 2,107,959 2,031,813
141,505100,849 149,203 145,503 135,604
2,532,8272,412,952 2,481,7632,457,6222,790,624
2,337,2535,215,6193,076,4542,855,9835,269,625
316,376287,692400,835364,501450,129
5,558,718699,5634,319,7563,950,18710,475,770
2,965,6132,666,7902,655,0001,905,0003,025,000
895,053797,785698,702802,892826,053
14,5817,677179,0449,039127,218
28,237,03626,401,06028,105,97427,394,20738,074,747
(1,031,628)148,474(465,541)649,703(8,346,000)
3,083,0932,320,8834,860,45910,463,4954,541,584
--10,960,000-10,016,248
--367,405-309,809
-108,532--4,820
-----
(3,409,350)(2,320,447)(4,660,459)(9,788,238)(4,312,661)
(326,257)108,96811,527,405675,25710,559,800
--9,992,117--
$(1,357,885)$257,442$21,053,981$1,324,960$2,213,800
17.02%13.48%11.52%11.26%13.95%
163
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
ASSESSED TAX CAPACITY AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
Last ten fiscal years
2006200720082009
Estimated actual value:
Real estate$ 2,079,719,7002,182,205,700$
Personal property 14,386,50014,862,000
Total estimated actual value2,035,666,100$ 2,140,133,600$ 2,197,067,700$ 2,094,106,200$
Tax Capacity
Real estate23,418,557$ 25,009,973$ 25,898,336$ 25,158,441$
Personal property298,953 283,198 291,815 283,070
Contribution to fiscal disparities(2,341,856) (2,500,997) (2,470,328) (2,719,868)
Receipt from fiscal disparities3,503,030 4,125,105 4,625,964 5,259,685
Tax increments(2,559,620) (2,463,631) (2,405,929) (2,739,457)
et tax capacity for direct rate$22,319,064$24,453,648$ 25,939,858$25,241,871
N
Net Tax Capacity as a Percentage
of Estimated Actual Market Value1.10%1.14%1.18%1.21%
Property Tax Levies
General revenues$ 10,612,956$ 10,939,788$ 11,404,750$ 11,804,016
Debt service 757,394 753,955 730,152 703,903
Housing and Redevelopment Authority 257,065 265,000 302,191 385,289
Total property taxes levie$11,627,415$ 12,437,09311,958,743$ 12,893,208$
d
Tax Rates
General revenues43.524 41.199 41.081 44.732
Debt service3.393 3.083 2.815 2.789
Housing and Redevelopment Authority1.152 1.084 1.185 1.617
Total Direct Tax Rate48.069 45.366 45.081 49.138
Sources: The data for this table has been provided by Hennepin County.
Note: The breakdown of real estate vs. personal property for estimated actual value, was not available
prior to 2008. This information will be updated on a go-forward basis.
164
Table 6
201020112012201320142015
$ 1,682,317,9001,882,823,900$ 1,633,327,900$ 1,506,661,400$ 1,497,679,200$ 1,648,833,600$
15,487,00014,219,700 16,139,200 18,257,700 18,319,800 18,829,900
$ 1,697,804,9001,897,043,600$ 1,649,467,100$ 1,524,919,100$ 1,515,999,000$ 1,667,663,500$
$ 20,759,13323,099,333$ 18,351,627$ 17,129,016$ 17,358,722$ 18,953,288$
304,150278,984 316,491 358,867 360,506 370,476
(2,774,593)(2,998,145) (2,619,012) (2,335,813) (2,495,133) (2,690,138)
7,123,0087,002,213 7,194,133 6,844,540 7,117,154 6,833,738
(2,093,764)(2,420,044) (1,922,253) (2,169,035) (2,675,416) (2,764,303)
$ 23,317,93424,962,341$ 21,320,986$ 19,827,575$ 19,665,833$ 20,703,061$
1.32%1.37%1.29%1.30%1.30%1.24%
$ 12,905,34012,504,044$ 13,207,954$ 13,632,326$ 13,673,970$ 14,381,534$
695,632715,183 708,581 711,725 687,000 396,496
310,831349,745 302,288 246,160 282,110 280,460
$ 13,911,80313,568,972$ 14,218,823$ 14,590,211$ 14,643,080$ 15,058,490$
54.23448.230 61.036 67.485 70.587 68.266
2.9833.323 3.590 3.547 1.760
2.865
1.317 1.341 1.457 1.128 1.609 1.230
52.412 58.55865.81672.202 75.74271.256
165
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
Last ten fiscal years
Overlapping Rates
SchoolSchoolSchoolSchoolMetro
CityCountyDistrict 11District 279District 281District 286Districts (1)
200648.069 41.016 20.046 21.815 28.489 39.781 2.924
200745.366 39.110 19.353 23.758 28.750 36.154 2.671
2008 45.081 38.571 16.983 19.710 27.243 37.519 2.562
2009 49.138 40.413 18.263 21.033 27.214 43.163 2.579
2010 52.412 42.640 19.939 22.381 28.621 51.173 2.620
2011 58.558 45.840 23.999 24.217 34.387 47.697 2.949
2012 65.816 48.231 23.325 24.930 32.810 48.020 3.084
2013 72.202 49.461 26.801 27.973 32.347 56.031 3.242
2014 75.742 49.959 28.265 29.819 34.777 54.422 3.335
2015 71.256 46.398 22.482 27.156 33.226 52.984 3.006
Sources: The data for this table has been provided by Hennepin County.
Note (1) - Metro Districts include: Mosquito Control, Metropolitan Council, and Metro Transit
Note (2) - Other Districts include: Hennepin Parks, Park Museum, Regional Railroad Authority, and Hennepin HRA.
Note (3) - The Watershed levy is applicable to all of School Districts 279 & 281, and portions of School Districts 11 & 286.
166
Table 7
Total Direct and Overlapping Rates
OtherWatershedISD 11 &ISD 286 &
Districts (2)Districts (3)ISD 11WatershedISD 279ISD 281ISD 286Watershed
4.074 0.073 1 16.129 1 16.202 1 17.971 1 24.645 1 35.864 1 35.937
4.639 - 1 11.139 1 11.139 1 15.544 1 20.536 1 27.940 1 27.940
4.835 0 .265 1 08.032 1 08.297 1 11.024 1 18.557 1 28.568 1 28.833
4.575 0 .047 1 14.968 1 15.015 1 17.785 1 23.966 1 39.868 1 39.915
5.518 0 .081 1 23.129 1 23.210 1 25.652 1 31.892 1 54.363 1 54.444
6.223 0 .568 1 37.569 1 38.137 1 38.355 1 48.525 1 61.267 1 61.835
6.439 0 .001 1 46.895 1 46.896 1 48.501 1 56.381 1 71.590 1 71.591
6.847 0 .101 1 58.553 1 58.654 1 59.826 1 64.200 1 87.783 1 87.884
7.226 - 1 64.527 1 64.527 1 66.081 1 71.039 1 90.684 1 90.684
8.009 - 1 51.151 1 51.151 1 55.825 1 61.895 1 81.653 1 81.653
167
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 8
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
20152006
Percentage ofPercentage of
Net TaxTotal TaxNet TaxTotal Tax
TaxpayerClassificationCapacityRankCapacity ValueCapacityRankCapacity Value
The Luther Company, LLPCommercial470,445$ 2.27%
The Molasky GroupCommercial461,250 2.23%
Wal-Mart Stores Inc.Commercial333,600 1.61%
Ax Rer, LPIndustrial192,850 0.93%
Medtronic, Inc.Industrial192,850 0.93%175,650$ 60.79%
Brookdale Corner, LLCCommercial188,250 0.91%204,850 30.92%
TLN Lanel, LTDApartment187,638 0.91%
Lake Point, LLCApartment177,500 0.86%
GB Homes, LLCApartment159,313 0.77%
Brooklyn Hotel Partners, LLCCommercial150,190 0.73%
Talisman Brookdale, LLCCommercial1,044,060 14.68%
Regal Cinemas, Inc.Commercial234,350 21.05%
BCC Associates LLCCommercial191,250 40.86%
Twin Lakes NorthApartment184,613 50.83%
The May Department Stores Co.Commercial166,450 70.75%
B.C. Leased HousingApartment150,750 80.68%
Sears Roebuck and Co.Commercial150,220 90.67%
Wickes Furniture CompanyCommercial146,110 100.65%
Totals2,513,886$ 12.15%2,648,303$ 11.88%
Sources: The data for this table has been provided by Hennepin County.
168
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
PROPERTY TAX LEVIES AND COLLECTIONSTable 9
Last ten fiscal years
Collected within the
CertifiedFiscal Year of the LevyCollections inTotal Collections to Date
PropertyPercentageSubsequentPercentage
Tax LevyAmountof LevyYearsAmountto Date
200611,627,415$ 10,697,638$ 92.0%929,777$ 11,627,415$ 100.0%
200711,958,743 11,070,387 92.6%888,356 11,958,743 100.0%
200812,437,093 11,577,739 93.1%859,354 12,437,093 100.0%
200912,893,208 11,983,738 92.9%909,470 12,893,208 100.0%
201013,568,972 12,633,425 93.1%935,547 13,568,972 100.0%
201113,911,803 12,947,358 93.1%951,268 13,898,626 99.9%
201214,218,823 13,942,766 98.1%245,720 14,188,486 99.8%
201314,590,211 14,472,075 99.2%118,136 14,590,211 100.0%
201414,643,080 14,470,227 98.8%148,480 14,618,707 99.8%
201515,058,490 14,815,657 98.4%- 14,815,657 98.4%
Sources: The data for this table has been provided by Hennepin County and from City financial documents.
Note: The components of the Certified Property Tax Levy can be viewed in table 6 of the statistical section.
169
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
RATIOS OF OUTSTANDING DEBT BY TYPETable 10
Last ten fiscal years
Governmental ActivitiesBusiness-Type Activities
GeneralTaxG.O.UtilityUtilityPercentage
ObligationIncrementImprovementRevenueRevenueTotalof PersonalPer
BondsBondsBondsNotes (PFA)BondsDebtIncomeCapita
20064,465,000$ $ 18,305,000$ 5,180,000$ -$ 27,950,000-$ 1.88%$ 1,002
20073,875,000 17,255,000 4,280,000 - 25,410,000- 1.63% 911
20083,275,000 20,560,000 5,690,000 - 29,525,000- 1.71% 973
20092,665,000 17,795,000 4,925,000 - 25,385,000- 1.61% 852
20102,025,000 15,010,000 4,005,000 2,350,000- 23,390,0001.42% 777
20111,385,000 13,720,000 3,260,000 2,210,000- 20,575,0001.19% 681
2012700,000 12,795,000 2,590,000 2,075,000- 18,160,0001.01% 594
2013 17,470,000- 6,920,000 1,940,000- 26,330,0001.43% 865
2014 16,040,000- 6,445,000 1,800,000- 24,285,0001.32% 798
2015 20,885,000- 8,591,24817,545,1583,483,75250,505,1582.64%1,690
Sources: The data for this table has been provided from City financial documents.
Note: More detailed information for Population and Personal Income can be viewed in table 15 of the statistical section.
170
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last ten fiscal years
Percentage of
GeneralLess: AmountsNet GeneralEstimated
ObligationRestricted toObligationMarket ValuePer
BondsDebt ServiceDebtof PropertyCapita
20064,465,000$ 1,083,063$ 3,381,937$ 0.17%121$
20073,875,000 1,159,331 2,715,669 0.13%97
20083,275,000 1,202,802 2,072,198 0.09%68
20092,665,000 1,211,620 1,453,380 0.07%49
20102,025,000 1,201,263 823,737 0.04%27
20111,385,000 1,203,611 181,389 0.01%6
2012700,000 1,186,758 - 0.00%-
2013- - - 0.00%-
2014- - - 0.00%-
2015- - - 0.00%-
Sources: The data for this table has been provided from City financial documents.
Note: More detailed information for Population can be viewed in table 15 of the statistical section.
Note: More detailed information for Estimated Property Values can be viewed in table 6 of the statistical section.
171
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 12
COMPUTATION OF DIRECT AND OVERLAPPING
GOVERNMENTAL ACTIVITIES DEBT
December 31, 2015
EstimatedEstimated Share
DebtPercentageof Overlapping
1
Debt
Governmental UnitOutstandingApplicable
Overlapping debt:
School Districts:
No. 11 Anoka61,840,000$ 6.80%4,205,120$
No. 279 Osseo124,150,000 4.40%5,462,600
No. 281 Robbinsdale148,980,000 5.10%7,597,980
No. 286 Brooklyn Center26,900,000 100.00%26,900,000
Metropolitan Council14,500,000 0.70%101,500
Metropolitan Transit247,215,000 0.90%2,224,935
Hennepin County772,785,000 1.40%10,818,990
Hennepin Regional RR Authority36,205,000 1.40%506,870
Three Rivers Park District54,835,000 1.90%1,041,865
Total overlapping debt1,487,410,000$ 58,859,860
City of Brooklyn Center direct debt 47,021,406
Total direct and overlapping debt$105,881,266
Source: Official statement for bonds issued in 2015.
Note: More detailed information for the City's outstanding debt can be viewed in table 10 of the statistical section.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of
the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a
resident, and therefore responsible for repaying the debt, of each overlapping government.
Note: The percentage of overlapping debt applicable is estimated using tax capacity values. Applicable percentages were estimated
by determining the the portion of each entity's tax capacity that is within the City's boundaries, and dividing it by the entity's
total tax capacity.
172
173
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
LEGAL DEBT MARGIN INFORMATION
Last ten fiscal years
2006200720082009
Taxable Market Value1,960,952,700$ 2,112,997,900$ 2,189,212,600$ 2,087,517,800$
Debt Limit Percentage2.00%2.00%3.00%3.00%
Debt Limit39,219,054 42,259,958 65,676,378 62,625,534
Total net debt applicable to limit3,381,937 2,715,669 2,072,198 1,453,380
Legal debt margi$ 39,544,28935,837,117$ 63,604,180$ 61,172,154$
n
Total net debt applicable to the limit
as a percentage of debt limit8.62%6.43%3.16%2.32%
Sources: The data for this table has been provided by Hennepin County and from City financial documents.
174
Table 13
201020112012201320142015
$ 1,692,594,6001,891,591,400$ 1,468,159,885$ 1,338,405,415$ 1,329,268,428$ 1,489,548,076$
3.00%3.00%3.00%3.00%3.00%3.00%
50,777,83856,747,742 44,044,797 40,152,162 39,878,053 44,686,442
181,389823,737 - - - -
$ 50,596,44955,924,005$ 44,044,797$ 40,152,162$ 39,878,053$ 44,686,442$
1.45%0.36%0.00%0.00%0.00%0.00%
175
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 14
PLEDGED-REVENUE COVERAGE
Last ten fiscal years
Special Assessment Bonds
Special
AssessmentDebt Service
CollectionsPrincipalInterestCoverage
2006$ 1,035,961$ 1,000,000$ 167,28488.75%
2007 884,261 900,000 162,48683.23%
2008 816,798 980,000 145,12172.60%
2009 1,173,435 765,000 166,946125.91%
2010 750,168 920,000 167,68668.97%
2011 747,145 745,000 136,89084.72%
2012 561,618 670,000 111,46071.87%
2013 485,034 590,000 88,87071.45%
2014 674,253 475,000 160,447106.11%
2015 1,120,946 1,270,000 187,22176.92%
Tax Increment Bonds
Tax IncrementDebt Service
CollectionsPrincipalInterestCoverage
2006$ 1,609,994$ 1,000,000$ 887,08085.32%
2007 1,707,470 1,050,000 847,23690.00%
2008 1,906,053 1,030,000 804,491103.90%
2009 2,356,641 2,765,000 922,71163.91%
2010 1,794,442 2,785,000 783,96150.28%
2011 1,321,205 1,290,000 702,53066.31%
2012 2,388,702 925,000 651,744151.50%
2013 2,766,160 1,365,000 598,107140.91%
2014 3,038,983 1,430,000 642,445146.64%
2015 2,953,728 1,755,000 638,832123.39%
Utility Revenue Bonds
Water and
Sanitary SewerLess:Net
UtilityOperatingAvailableDebt Service
ChargesExpensesRevenuePrincipalInterestCoverage
2010$ 5,249,263$ 4,934,032$ 315,231$ -$ 68,081463.02%
20115,421,6795,011,775409,904140,00083,438183.45%
2012 5,889,769 5,084,012 805,757 135,000 81,562372.07%
2013 5,951,703 5,335,477 616,226 135,000 80,188286.37%
2014 6,151,426 5,334,905 816,521 140,000 76,902376.45%
2015 6,667,218 5,665,327 1,001,891 1,815,352238,40148.78%
Sources: The data for this table has been provided from City financial documents.
Note: The Utility Revenue bonds were issued in 2010. Determined it was not necessary to show data prior to that year.
176
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 15
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last ten fiscal years
School Enrollments
Per CapitaNo. 286
No. ofPersonalPersonalUnemploymentMedianNo. 11No. 279No. 281Brooklyn
PopulationHouseholdsIncomeIncomeRateAgeAnokaOsseoRobbinsdaleCenter
11,142$1,484,751,7154.9%
2006 27,901$ 53,215 41,310 22,071 13,194 1,705
11,2071,554,866,4125.6%
2007 27,907 55,716 34.3 40,656 21,859 12,891 1,763
11,2501,723,775,2207.0%
2008 30,330 56,834 34.4 40,152 21,001 12,526 2,012
11,1751,572,835,2208.9%
2009 29,810 52,762 33.6 39,822 20,903 11,947 2,250
10,7561,649,036,9128.0%
2010 30,104 54,778 31.3 39,106 20,835 12,036 2,311
10,7911,734,223,0687.2%
2011 30,204 57,417 32.8 38,686 20,686 12,062 2,109
10,8121,800,452,9626.4%
2012 30,569 58,898 33.1 38,403 20,623 12,181 2,177
10,8621,843,846,0265.1%
2013 30,426 60,601 33.3 38,183 20,689 12,266 2,182
10,7561,909,936,9893.6%
2014 29,889 63,901 32.3 37,853 20,398 12,385 2,399
10,7561,909,936,9894.0%32.3
2015 29,889 63,901 37,853 20,398 12,385 2,399
Sources: Population & Households - Metropolitan Council
Personal Income - Calculated by the City
Per Capita Personal Income - US Department of Commerce; Bureau of Economic Analysis
Unemployment Rate - Minnesota Department of Employment and Economic Development
Median Age - US Department of Commerce, Bureau of the Census
School Enrollment - Minnesota Department of Education
Note: Median age was added in 2013. Information prior to 2007 was not available. This will be updated on a go-forward basis.
Note: Some data was not yet available for 2015. In those instances, 2014 data was shown for the current year.
177
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 16
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
20152006
Percentage ofPercentage of
Total CityTotal City
EmployerEmployeesRankEmploymentEmployeesRankEmployment
Promeon Inc., A Division of Medtronic1,100 17.17%1,000 26.83%
Independent School District #286375 22.44%300 42.05%
Luther Auto Group320 32.08%
Wal-Mart300 41.95%
Presbyterian Homes, Marantha Care Center200 51.30%
Caribou Coffee Headquarters200 61.30%
University of Minnesota Physicians200 71.30%
City of Brooklyn Center156 81.02%150 91.02%
TCR Corporation160 91.04%137 100.94%
Target125 100.81%250 51.71%
Brookdale Center 112.64%1,850
Graco, Inc. 35.47%800
Nations Care Link 61.59%233
Cub Foods 71.59%233
Best Buy 81.06%155
Totals3,136 20.43%5,108 34.90%
Sources: The data for this table has been extracted from Official Statements for bonds issued in 2006 and 2015.
178
CITY OF BROOKLYN CENTER, MINNESOTA
STATISTICAL SECTION (UNAUDITED)
Table 17
FULL TIME CITY GOVERNMENT POSITIONS BY FUNCTION
Last ten fiscal years
2006200720082009201020112012201320142015
General government
Administrative 3 .0 3 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Elections
1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0
City Clerk
1 .0 1 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Finance
6 .0 6 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0
Assessor
3 .0 3 .0 3 .0 3 .0 3 .0 3 .0 3 .0 3 .5 3 .5 -
Human Resources
2 .0 2 .0 2 .0 3 .0 3 .0 3 .0 3 .0 3 .0 3 .0 3 .0
Information technology
2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Building Maintenance
4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 3 .0 3 .0 3 .0 3 .0
Total general government 2 2.0 2 2.0 2 1.0 2 2.0 2 2.0 2 2.0 2 1.0 2 1.5 2 1.5 1 8.0
Public safety
Police
Administration
3 .0 3 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Investigation
7 .0 8 .0 7 .0 7 .0 7 .0 7 .0 7 .0 7 .0 7 .0 7 .0
Patrol
3 5.0 3 5.0 4 1.0 4 0.0 4 2.0 4 2.0 4 2.0 4 2.0 4 1.0 4 1.0
Support Services
1 2.0 9 .0 9 .0 9 .0 9 .0 9 .0 9 .0 9 .0 9 .0 9 .0
Facility Maintenance
1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0
Fire
1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 2 .0
Emergency Preparedness 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0
Planning & Zoning
2 .0 2 .0 2 .0 2 .0 2 .0 1 .5 1 .5 1 .5 1 .5 1 .5
Inspections
4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 5 .0 5 .0
Code Enforcement
- - 2 .0 5 .0 5 .0 5 .0 4 .0 5 .0 5 .0 4 .0
Total public safety
6 6.0 6 4.0 7 0.0 7 2.0 7 4.0 7 3.5 7 2.5 7 3.5 7 3.5 7 3.5
Public works
Engineering & Admin
6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 7 .0 7 .0 7 .0
Street Maintenance
8 .0 8 .0 8 .0 8 .0 8 .0 8 .0 7 .0 7 .0 7 .0 7 .0
Traffic Control
2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Total public works
1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 5.0 1 6.0 1 6.0 1 6.0
Parks and recreation
Administration
2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0 2 .0
Recreation Programs
4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0 4 .0
Community Center
3 .0 3 .0 3 .0 3 .0 3 .0 3 .0 - - - -
Parks Maintenance 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0 6 .0
Forestry
1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0
Total park and recreation
1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 6.0 1 3.0 1 3.0 1 3.0 1 3.0
Economic Development
2 .0 2 .0 2 .0 2 .0 2 .0 2 .5 2 .5 2 .5 2 .5 2 .5
Municipal Liquor
3 .0 4 .0 4 .0 4 .0 5 .0 4 .0 4 .0 5 .0 5 .0 5 .0
Golf Course
1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0 1 .0
Earle Brown Heritage Center 1 1.0 1 1.0 1 1.0 1 1.0 1 1.0 1 1.0 1 1.0 1 1.0 1 2.0 1 2.0
Water
5 .3 5 .3 5 .3 5 .3 5 .3 5 .3 5 .3 5 .3 5 .3 5 .3
Sanitary Sewer
2 .3 2 .3 2 .3 2 .3 2 .3 2 .3 2 .3 2 .3 2 .3 2 .3
Storm Drainage1.4
1 .4 1 .4 1 .4 1 .4 1 .4 2 .4 2 .4 2 .4 2 .4
Central Garage
5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0 5 .0
Total
151.0150.0155.0158.0161.0160.0155.0158.5159.5156.0
Sources: The data for this table has been extracted from the respective years budget document.
179
Table 18
Violent Crimes19121019216613813511312997113Property Crimes2,0541,9922,0491,6961,3581,5291,5611,7121,1951,080Total Calls for Service28,64434,18536,92344,15243,06941,34739,73637,37035,91434,997Fires/Al
l other calls697677684688772774781634844769Medical calls3263864195389801,1351,2091,2091,2631,212Fire inspections performed001061052451412952701979Total miles105.78105.78105.78105.78105.73105.73105.73
105.73105.73105.73Miles of streets reconstructed2.504.204.152.645.175.620.702.903.013.91Community Center Admissions61,68061,02260,32361,27259,31057,87459,55062,43456,14231,882Acres of
park maintained5275275275275275275275275275272222222222Sales (in thousands)$5,159$5,475$5,485$5,610$5,543$5,789$5,964$6,063$5,852$6,057Rounds sold21,10015,68015,80214,04013,52412,16912,87511,72411,02
312,359Bookings611570522421433548460397409374Functions1,8701,7201,4121,1781,1191,0551,0531,0821,014935Connections8,9048,9978,9868,9908,9608,8878,8948,8968,9098,927Miles of water mains120.50121.80121.
80121.80121.80121.80121.80119.70119.87119.40Average daily consumption3,609,9033,621,1223,550,1263,733,6023,190,0002,939,0003,196,0723,000,3782,819,8742,794,874Connections8,8078,7938,8378,8378,8298,82
08,8138,7838,7898,788Miles of sanitary sewer105.61105.61105.61105.61105.61105.61105.61105.61105.6197.51
Function2006200720082009201020112012201320142015
180
Sources: The data for this table has been provided by each respective City department.
CITY OF BROOKLYN CENTER, MINNESOTA
OPERATING INDICATORS BY FUNCTION
STATISTICAL SECTION (UNAUDITED)
Earle Brown Heritage Center
Parks and recreation
Last ten fiscal years
Number of stores
Municipal liquor
Sanitary sewer
Golf course
Streets
Water
Police
Fire
Table 19
Streets (miles)105.78105.78105.78105.78105.73105.73105.73105.73105.73105.73
13131515151515141211
111111Marked squads8899999101010Other vehicles16161418181816181818222222888888333335Mobile equipment14141414141414131414Heavy duty trucks1313131313131312131366676452752752752752752752752752721.621.62
1.621.621.621.621.621.614.214.91111118888889999991010101010101010101074.2074.2083.0184.5586.28
120.50121.80121.80121.80121.80121.80121.80119.70119.87119.40
Function2006200720082009201020112012201320142015
1
5
.
7
9
1
6
.
5
0
1
1
6
.
5
0
1
1
6
.
5
0
1
1
6
.
5
0
1
0
1
62
..
4
5
07
1
Other vehicles76661111
Stations1111Stations2222Fire trucks7888Other vehicles222388989999
10
62
..
54
07
1
181
Sources: The data for this table has been provided by each respective City department.
10
62
..
54
07
1
10
62
..
54
07
1
70
1
262
..
5
CITY OF BROOKLYN CENTER, MINNESOTA
4
5
07
CAPITAL ASSET STATISTICS BY FUNCTION
1
STATISTICAL SECTION (UNAUDITED)
Ground maintenance equipment
Sanitary sewers (miles)
Storm sewers (miles)
Water mains (miles)
Community centers
Parks and recreation
Last ten fiscal years
Other vehicles
Trails (miles)
Patrol units
Lift Stations
Public works
Public safetye
g
a
e
r
Police
Wells
c
Sewer
aWater
Fire
s
k
r
a
P
182