HomeMy WebLinkAbout2004 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2004
Finance Department
William J. Elrite, Finance Director
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Principal City Officials
3
Organizational Chart
5
Letter of Transmittal
7
Certificate of Achievement for Excellence in Financial Reporting
13
II. FINANCIAL SECTION
Independent Auditor's Report
17
Management's Discussion and Analysis
21
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets
Statement of Activities
Statement 1
Statement 2
38
40
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Fiduciary Net Assets - Fiduciary Funds
Statement 3 42
Statement 4 44
Statement 5 47
Statement 6 48
Statement 7 50
Statement 8 52
Statement 9 56
57
Notes to Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Budgetary Comparison Schedule - Anoka County CDBG
Budgetary Comparison Schedule - Economic Development Authority Administration
Statement 10
Statement 11
Statement 12
88
90
91
Budgetary Comparison Schedule - Note to RSI
92
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Schedule of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds
Statement 13
98
Statement 14
99
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Subcombining Schedule of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds
Statement 15
103
Statement 16
107
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Community Development
Cable Television Fund
Library Fund
D.AR.E. Program
Fund Balance - Actual:
Special Projects
C.H.AS.E.
Twenty-First Century Grant
Confiscated Property
Local Law Enforcement Block Grant
COPS MORE 96
Juvenile Justice Grant
Police Grants - Other
Recreation Contributed Projects
Contributed Projects
Flex Benefit Fund
PoliceIFire Contingency
Statement 17 110
Statement 18 111
Statement 19 112
Statement 20 113
Statement 21 114
Statement 22 115
Statement 23 116
Statement 24 117
Statement 25 118
Statement 26 119
Statement 27 120
Statement 28 121
Statement 29 122
Statement 30 123
Statement 31 124
Statement 32 125
Housing and Redevelopment Authority (Component Unit):
Combining Balance Sheet
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balance
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Parkview Villa North
Parkview Villa South
Fund Balance - Actual:
Rental Housing
Statement 33
126
Statement 34
127
Statement 35
Statement 36
128
129
Statement 37
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Statement 38 131
Statement 39 132
Statement 40 134
Statement 41 135
Statement 42 138
Statement 43 141
Economic Development Authority (Component Unit):
Business Revolving Loan Fund:
Balance Sheet
Schedule of Revenues, Expenditures and Changes in Fund Balance
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Subcombining Schedule of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Subcombining Schedule of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds
Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Assets
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets
Subcombining Schedule of Cash Flows
Statement 44
Statement 45
Statement 46
Sewer Utility Fund:
Subcombining Schedule of Net Assets
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets
Subcombining Schedule of Cash Flows
Statement 47
Statement 48
Statement 49
Refuse Utility Fund:
Subcombining Schedule of Net Assets
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets
Subcombining Schedule of Cash Flows
Statement 50
Statement 51
Statement 52
Storm Sewer Utility Fund:
Subcombining Schedule of Net Assets
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets
Subcombining Schedule of Cash Flows
Statement 53
Statement 54
Statement 55
146
147
148
149
150
151
152
153
154
155
156
157
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Liquor Fund:
Subcombining Schedule of Net Assets Statement 56 158
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 57 159
Subcombining Schedule of Cash Flows Statement 58 160
Internal Service Funds:
Combining Schedule of Net Assets Statement 59 162
Combining Schedule of Revenues, Expenses and Changes in Fund
Net Assets Statement 60 163
Combining Schedule of Cash Flows Statement 61 164
Central Garage Fund:
Subcombining Schedule of Net Assets Statement 62 165
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 63 166
Subcombining Schedule of Cash Flows Statement 64 167
Data Processing Fund: Statement 65 168
Subcombining Schedule of Net Assets
Subcombining Schedule of Revenues, Expenses and Changes in Statement 66 169
Fund Net Assets Statement 67 170
Subcombining Schedule of Cash Flows
Insurance Fund:
Subcombining Schedule of Net Assets Statement 68 171
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 69 172
Subcombining Schedule of Cash Flows Statement 70 173
Compensated Absences Fund:
Subcombining Schedule of Net Assets Statement 71 174
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 72 175
Subcombining Schedule of Cash Flows Statement 73 176
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 74 178
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Supplementary Financial Information:
Combined Schedule of Bonds Payable
Exhibit 1
180
III. STATISTICAL SECTION (UNAUDITED)
Government- Wide Information:
Government- Wide Expenses By Function
Government- Wide Revenues
Table 1
Table 2
186
188
Fund Information:
General Governmental Expenditures by Function
General Governmental Revenues by Source
Tax Levies and Tax Collections
Assessed Value, Tax Capacity, and Estimated
Actual Value of all Taxable Property
Tax Rates - Per $100 of Tax Capacity
City Tax Levy
Principal Taxpayers
Special Assessment Levies and Collections
Computation of Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General
Obligation Bonded Debt Per Capita
Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt
to Total General Governmental Expenditures
Computation of Direct and Overlapping Debt
Revenue Bond Coverage: Water, Sewer, and Storm Sewer Funds
Property Value and Construction
Miscellaneous Statistics
Demographic Statistics
Table 3 190
Table 4 191
Table 5 192
Table 6 193
Table 7 194
Table 8 195
Table 9 196
Table 10 197
Table 11 198
Table 12 199
Table 13 200
Table 14 201
Table 15 202
Table 16 203
Table 17 204
Table 18 206
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION
Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Government
209
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with Government Auditing Standards
223
Report on Compliance with Requirements Applicable to each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133
227
Schedule of Findings and Questioned Costs
233
Schedule of Expenditures of Federal Awards
239
Report on Supplementary Information - Financial Data Schedule
243
Financial Data Schedule
245
I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
Year Ended December 31, 2004
Name
Official Title
Mayor and Council
Gary L. Peterson
Tammera Ericson Diehm
Bruce Kelzenberg
Bruce Nawrocki
Robert A Williams
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Administration
Walter Fehst
Linda Magee
William Elrite
Jim Hoeft
Kevin Hansen
Thomas Johnson
Charles Thompson
Lauren McClanahan
Keith Windschitl
Larry Scott
M. Rebecca Loader
Robert Streetar
City Manager
Assistant to City Manager
City Clerk-Treasurer, Finance Director
City Attorney
Public Works Director, City Engineer
Chief of Police
Chief of Fire
Superintendent of Public Works
Recreation Services Director
Liquor Operations Manager
Librarian
Community Development Director
3
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City of Columbia Heights
Organizational Chart
Mayor:
Gary L. Peterson
I
Councilmembers:
Tammera Ericson
Bruce Kelzenberg
Bruce Nawrocki
Robert Williams
t- ADMINISTRATION
City Manager: Assistant to the City Manager I
Walter Fehst Human Resources Director
Special Projects Coordinator
Administrative Secretary
- - - - - - - Deputy City Clerk/Council Secretary*
Commissions & Boards:
Charter
EDA
HRA
Police & Fire Civil Service
Traffic
Telecommunications
Planning & Zoning
Human Services
Park & Recreation
Library
POLICE (Administered by Mayor)
Police Chief: Thomas Johnson
Secretary II
Police Captain
Clerk-Typist II
Sergeants (3)
Corporals (3)
Patrol Officers (15)
Community Service Officers (2)
Support Services Supervisor
Secretary II-A (2)
RECREATION
Recreation Director: Keith Windschitl
Senior Citizen Coordinator
Program Coordinator (1)
Head Custodian
Recreation Clerk/Typist II
Recreation Clerk/Typist II (PT)
Custodian II (6 PT)
Custodian I (1 PT)
FIRE
Fire Chief: Charles Thompson
Secretary II (PT)
Assistant Fire Chief
FT Clerk Typist
Firefighters (5)
Volunteer Firefighters (30)
Reserve Division (4)
LIBRARY
Library Director: M. Rebecca Loader
Adult Services Specialist
Children's L1branan
Clerk-Typist II (2)
Library Supervisor (4 PT)
Page (8 PT)
Library Aide (PT)
Library Clerk (PT)
FINANCE
Finance Director/City ClerkfTreasurer: William Efrite
Secretary II (FT)
Assistant Finance Director
Accounts Payable Clerk
Payroll/Accounting Clerk III
Utilities Accounting Clerk II
Utilities Accounting Clerk I
Accounting Clerk II (PT)
Switchboard Operator/Receptionist
Meter Reader (PT)
Liquor Operations Manager
Assistant Liquor Operations Manager (6)
Store Supervisor (1)
Retail Clerk (29 PT)
IS Director
IS Technician
PUBLIC WORKS
Public Works Director/City Engineer: Kevin Hansen
Secretary II-A
Assistant City Engineer
Engineering Technician IV (2)
Engineering Technician III
Public Works Superintendent
Foreman (3)
Maintenance Worker (16)
Supervisor-Vehicle Maintenance
Maintenance III - Mechanic
Maintenance III - Bodyman/Painter
Administrative Assistant
Assessing Clerk
COMMUNITY DEVELOPMENT
Community Development Director: Bob Streetar
Community Development Assistant
Building Official
Planner
Community Development Secretary
Secretary II-Permits/License (1 PT)
*Also serves in the capacity of Deputy City Clerk under the City Manager.
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City of Columbia Heights
Finance Department
S90 40 Avenue N.E. Colwnbia Heights. MN 55421-3878 Office (763) 706-3600
Information Systems
Financial Repotting
Accovnts Payable
Utility 8IIIJng
Paymll
TOO (763) 706-3692
May 31,2005
To the Citizens of the City of Columbia Heights,
Mayor, Councilmembers, and City Manager
The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year
ended December 31,2004 is hereby submitted. The City's management assumes responsibility
for both the completeness and reliability of the information contained in this report, based on a
comprehensive framework of internal control that it has established for this purpose_ Because
the cost of internal control should not exceed its anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
HLB Tautges Redpath, Ltd., Certified Public Accountants, have issued an unqualified ("clean")
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2004. Their independent auditors' report is located at the front of the financial section of this
report.
State law requires every city to issue by June 30th of each year a complete set of audited financial
statements for the preceding fiscal year ended December 31 st. In addition, state law requires
each City have an annual Minnesota Legal Compliance Audit performed. During the year ended
December 31, 2004, the City expended more than $500,000 in federal grant awards. The City is
therefore also required to undergo an audit in conformity with the provisions of the Single Audit
Act of 1984 and the United States Office of Management and Budget Circular A-133.
Information related to the Single (A-133) Audit and the Minnesota Legal Compliance Audit,
including the Schedule of Expenditures of Federal Awards, is included in the Single Audit and
Other Required Reports Section at the back of this report.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Columbia
Heights' MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City of Columbia Heights, which is a suburb located north of the City of Minneapolis in
Anoka County in east-central Minnesota, was originally incorporated as a village in 1898. In
1921, pursuant to the adoption of a home rule City Charter by the qualified voters of the City, a
council-manager form of government, was instituted. The City Council consists of a Mayor and
Semu Is o.r ....
THE CITY OF COLUMBIfl HEIGtiTS DOES NOT DISCR......ATE ON THf= BASIS Of OISASLnY.. EMPlOYMENT OR THE PROVISION Of SERVICES
EQUAl OPP~TUNITY EMPLOYER
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four Councilmembers. All are elected at-large, on a non-partisan basis. The Mayor serves a two-
year term and the Councilmembers serve four-year terms. The City Manager is appointed by the
City Council. The City covers an area of 3.52 square miles and currently has a population of
18,520. The City is empowered to levy a tax on both real and personal property within its
boundaries.
All City funds, departments, commissions and other organizations for which the City of
Columbia Heights is financially accountable, including all component units, are presented within
the Comprehensive Annual Financial Report. The Housing and Redevelopment Authority (HRA)
and the Economic Development Authority (EDA) are included in the reporting entity as blended
component units of the City of Columbia Heights due to the fact that the governing boards are
substantively the same and the City is in a relationship of financial benefit or burden with the
authorities.
The City provides a full range of services to its citizens. These services include, but are not
limited to, police and fire protection; water and sanitation services; the construction and
maintenance of highways, streets, and infrastructure; library; recreational facilities; cultural
events; and general administrative services.
LOCAL ECONOMY
The City is located within the varied and stable economic base of the Minneapolis-Saint Paul
greater metropolitan area, which is a major center for both the state and the Upper-Midwest. As
such, there has been a relatively stable level of employment for City residents and this is
expected to continue. The unemployment rate in the City did increase slightly due to the most
recent recession, but it remained well below the national average.
The largest employers located within the boundaries of the City itself include Medtronic Inc, a
medical device manufacturer; Independent School District 13; and Crestview Corporation, a
provider of elder care.
The greater metropolitan region has seen a dramatic increase in commuter traffic over the last
several years. The pace at which capacity has been added to the metro area's freeway and transit
systems has not kept up with this increase in traffic. The state government is the primary
provider of funding for these systems. The state government has been in significant budget crisis
for at least the last three years. These conditions, combined with the recent national surge in
gasoline prices, are expected to create a strong demand for housing located more centrally within
the metropolitan area. With its close proximity to the Minneapolis downtown area, including its
skyline views, the City of Columbia Heights offers many people excellent opportunities to live
relatively close to where they work.
However, as an older, fully developed suburb of the City of Minneapolis, the management and
residents of the City of Columbia Heights are faced with the problems of an aging infrastructure
and increased crime statistics. The City Council and City Management are taking a proactive
approach in dealing with these concerns. In recent years, the City has completed several
redevelopment projects that have greatly improved the downtown area of Columbia Heights.
9
The City currently has a number of related projects in-progress. Some of these are described
further below.
LONG- TERM FINANCIAL PLANNING
By Council resolution, a portion of the unreserved fund balance in general fund is designated for
working capital purposes. This portion is equal to 45% of budgeted general fund expenditures
for the following year. At December 31, 2004, there was sufficient unreserved fund balance in
the general fund to meet this target.
The City has a planned Street Rehabilitation Program including, as needed, water mains, sanitary
sewer and storm sewer improvements. The plan divides the City into seven street rehabilitation
zones and calls for approximately one zone to be rehabilitated every one to two years, beginning
in 1997. Currently this plan extends through 2007. Most of the cost of street rehabilitation is
charged to the benefiting properties in the form of special assessments. In some cases, the City
issues bonds to initially finance the project, repaying the bonds with special assessments as the
assessments are collected over a number of years.
The City is exploring options for moving its largest municipal liquor operation from a leased
space to a city-owned building, in order to reduce occupancy costs over the long-term. During
2004, the City obtained an analysis by an outside consultant indicating sufficient demand for
community center facilities located within the City to support two to four gymnasiums beyond
those currently available in the area.
MAJOR INITIATIVES
Currently, the largest and most active of the City's redevelopment projects include:
1) Facilitating the redevelopment by a private developer of the former K-Mart site on
Central Avenue into housing. When completed, the proj ect will consist of 231 units of
housing. Building permits were issued in 2004 for the first 67 units. Some of the pre-
development costs incurred by the City for this project have been/will be reimbursed by
the developer. Qualified costs incurred by the developer will be reimbursed from future
tax increment collections for the property.
2) Facilitating the redevelopment by a private developer of the former industrial park site,
located south and west of the City's largest park, into housing. When completed, this
project will cover approximately 30 acres with approximately 500 units of housing and a
re-design of the road along the adjacent City Park into a parkway. Property acquisition
and building demolition began in 2004 for this project. To date, approximately $2 million
in state and other grants have been received for pollution remediation within the site.
Some of the pre-development costs incurred by the City for this project have been/will be
reimbursed by the developer. Qualified costs incurred by the developer will be
reimbursed from future tax increment collections for the property.
Other initiatives beginning in 2005 include the recruitment and training of a Community
Emergency Response Team (CERT) and the installation of a reverse 911 system. The CERT
members are volunteers trained to assist the City's public safety officials in various emergency
situations such as disaster recovery, thereby providing a greater amount of service to residents
10
with the same level of paid public safety staffing. Federal grants were received for the initial
training of the CERT and the installation of the reverse 911 system.
A WARD AND AKNOWLEDGEMENTS
The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Columbia Heights, Minnesota for its
Comprehensive Annual Financial Report for the year ended December 31, 2003. The Certificate
of Achievement is a prestigious national award that recognizes conformity with the highest
standards for preparation of state and local government financial reports. In order to be awarded
a Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report whose contents conform to program
standards. The CAFR must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to the GFOA.
The preparation of the Comprehensive Annual Financial Report on a timely basis was made
possible by the dedicated service of the entire staff of the Finance Department. Each member of
the department has our sincere appreciation for the contributions made in the preparation of this
report.
In closing, without the leadership and support of the City Manager and City Council, preparation
of this report would not have been possible.
Sincerely,
William 1. Elrite
Finance Director
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Columbia Heights,
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2003
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and [mancial reporting.
IL~~~
President
~/~
Executive Director
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II. FINANCIAL SECTION
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Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of
the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 2004
which collectively comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of the City of Columbia Heights,
Minnesota's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota, as of December 31, 2004, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
April 21, 2005 on our consideration of the City of Columbia Heights, Minnesota's internal
control over financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts and grants. That report is an integral part of an audit performed
in accordance with Government Auditing Standards and should be read in conjunction with
this report in considering the results of our audit.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 4267000 651 4265004 Fax
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 4804990 651 4265004 Fax
www.hlbtr.com
HLB Tautges Redpath, Ltd, is a member of rill International, a world-wide organization of accounting firms and business advisors.
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The Management's Discussion and Analysis and the budgetary comparison information as
listed in the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles accepted in the United States
of America. We have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no
opinion on it.
Our audit was made for the purpose of forming opinions on the financial statements that
collectively comprise the City of Columbia Heights, Minnesota's basic financial statements.
The accompanying schedule of expenditures of federal awards as required by U.S. Office of
Management and Budget Circular A-I33, Audits of States, Local Governments, and Non-
Profit Organizations, along with the introductory section, combining and individual fund
statements and schedules, supplementary financial information and statistical information as
listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the basic [mancial statements of the City of Columbia Heights, Minnesota.
The combining and individual fund statements and schedules, supplementary financial
information and schedule of expenditures of federal awards has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion,
are fairly stated in all material respects, in relation to the basic financial statements taken as a
whole. The introductory section and statistical information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly,
we express no opinion on them.
tfz a ~ ~ / '-/;I.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 21, 2005
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Columbia Heights, we offer readers of the City of Columbia
Heights' financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31,2004. 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 in the introductory section of this report.
Financial Hh.!hlh.!hts
The assets of the City of Columbia Heights exceeded its liabilities at the close of the most recent
fiscal year by $50,501,883 (net assets). Of this amount, $27,374,726 or approximately 54%
(unrestricted net assets) may be used to meet the government's ongoing obligations to citizens
and creditors in accordance with the City's fund designations and fiscal policies.
The City's total net assets increased by $3,634,100. The majority of this was due to a combined
60% increase in the total of, grants for specific programs, special assessments and charges for
services compared to the prior year.
As of the close of the current fiscal year, the City of Columbia Heights' governmental funds
reported combined ending fund balances of $22,173,602. This is an increase of $2,688,477 from
the prior year. As of the close of the current fiscal year, the portion of combined ending
governmental fund balances that is both unreserved and undesignated is $1,328,118 or 6%.
At the end of the current fiscal year, the general fund balance of$4,140,110, included $23,302
reserved for prepayments, $3,743,344 designated for working capital and $373,464 unreserved
undesignated.
During 2004, the City's total bonded debt increased by $1,219,417 to a total of $7,524,704. This
was primarily due to the issuance in 2004 of$1,985,000 in general obligation tax increment
refunding bonds. The proceeds from these 2004 bonds will be used in 2005 to refund a 1990
bond issue of general obligation tax increment bonds, in order to take advantage of more
favorable interest rates.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Columbia
Heights' basic financial statements. The City's basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
21
Management's Discussion and Analysis
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Col umbia Heights' finances, in
a manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Columbia Heights' assets
and liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City of Columbia Heights is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Columbia
Heights 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 of Columbia Heights include general government, public safety, public works, culture and
recreation and community development. The business-type activities of the City of Columbia
Heights include water, sanitary sewer, refuse, storm sewer and liquor operations.
The government-wide financial statements are presented as statements 1 and 2 of this report.
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 of
Columbia Heights, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City of
Columbia Heights can be divided into three categories: governmental funds, proprietary funds,
and fiduciary 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
22
Management's Discussion and Analysis
of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
F or the current fiscal year ended December 31, 2004, the City of Col umbia Heights has ten
individual major governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, Anoka County community development block
grant fund, Economic Development Authority administration fund, capital appreciation bonds of
1990 fund, municipal state aid street fund, Sheffield tax increment financing redevelopment
fund, capital improvements-development fund, capital improvements-general government
buildings fund, capital equipment replacement-general government fund, and capital
improvements-PIR fund, all of which are considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City of Columbia Heights adopts an annual appropriated budget for its general and some
special revenue funds.
A budgetary comparison statement has been provided for those funds to demonstrate compliance
with this budget.
The basic governmental fund financial statements are presented as statements 3 through 5 of this
report.
Proprietary funds. The City of Columbia Heights 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 of Columbia Heights uses enterprise
funds to account for its water, sewer, refuse, storm sewer, and liquor operations. Internal service
funds are an accounting device used to accumulate and allocate costs internally among the City-
of Columbia Heights' various functions. The City of Columbia Heights uses internal service
funds to account for its central garage, data processing, insurance, and compensated absences
services. Because the central garage, insurance and compensated absences services
predominately benefit governmental rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements. And also, because
the data processing services predominately benefit the business-type functions, it has been
included within the business-type activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, refuse, storm sewer and liquor operations, all of which are
considered to be major funds of the City of Columbia Heights. Conversely, the internal service
funds are combined into a single, aggregated presentation in the proprietary fund financial
23
Management's Discussion and Analysis
statements. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
The basic proprietary fund financial statements are presented as statements 6 through 8 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of Columbia
Heights' own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement is presented as statement 9 of this report.
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.
Other information. The combining statements referred to earlier in connection with non-major
governmental funds and internal service funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules are presented as statements 12 through 74 of this report.
Government-wide Financial Analvsis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Columbia Heights, assets exceeded liabilities by $50,501,883
at the close of the most recent fiscal year.
A portion of the City of Columbia Heights' net assets ($20,504,463 or 41 %) reflects its
investment in capital assets (e.g. land, buildings, improvements, furniture and fixtures,
machinery and equipment and infrastructure) less any related debt used to acquire those assets
that is still outstanding. The City of Columbia Heights uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City of Columbia Heights' 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.
24
Management's Discussion and Analysis
CITY OF COLUMBIA HEIGHTS' NET ASSETS
Governmental Activities Business- Type Activities Totals
2004 2003 2004 2003 2004 2003
Current and other assets $27,469,158 $23,783,849 $8,240,656 $8,357,248 $35,709,814 $32,141,097
Capital assets 19,214,012 18,103,705 8,661,924 8,293,539 27,875,936 26,397,244
Total assets $46,683,170 $41,887,554 $16,902,580 $16,650,787 $63,585,750 $58,538,341
Long term liabilities
outstanding $5,650,222 $3,568,116 $2,568,343 $2,556,261 $8,218,565 $6,124,377
Other liabilities 4,051,889 4,599,846 813,413 946,335 4,865,302 5,546,181
T ota1liabilities $9,702,111 $8,167,962 $3,381,756 $3,502,596 $13,083,867 $11,670,558
Net assets
Invested in capital assets
net ofre1ated debt $14,328,916 $14,535,589 $6,175,547 $5,432,788 $20,504,463 $19,968,377
Restricted 2,285,305 1,114,870 337,389 290,175 2,622,694 1,405,045
Unrestricted 20,366,838 18,069,133 7,007,888 7,425,228 27,374,726 25,494,361
Total net assets $36,981,059 $33,719,592 $13,520,824 $13,148,191 $50,501,883 $46,867,783
A portion of the City of Columbia Heights' net assets represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
($27,374,726 or 54%) may be used to meet the City's ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City of Columbia Heights is able to report positive
balances in all three categories of net assets, both for the government as a whole, as well as for
its separate governmental and business-type activities.
25
Management's Discussion and Analysis
Governmental activities
Governmental activities increased the City of Columbia Heights' net assets by $3,261,467. Key
elements of this increase are as follows:
Charges for services, plus grants and contributions for specific governmental activities
increased by 60% or $2,143,130 for 2004 compared to 2003. Major components of this
increase included:
. $771,478 more in grants for community development, mostly related to
redevelopment projects.
. $440,703 more in special assessments due to the timing of various street projects.
. $313,847 more in charges for services, including a $187,358 building permit fee
for a new water treatment plant owned by the City of Minneapolis that is located
within the City of Columbia Heights.
2004 general governmental activities revenues not restricted to specific programs increased
by 9% or $716,640. This included unrestricted investment earnings for governmental
activities at an increase of $321,248 over the prior year. The prior year included a significant
temporary decline in market value (as the City invests in fixed-income investments and
usually holds them to maturity) that was not repeated in the current year.
Total governmental activities expenditures for 2004 increased by only 2% or $286,564 from
the prior year. A significant cause of this was a hiring freeze in place during 2004. The
hiring freeze was in response to reductions in the annual amount of state aid to local
government received by the City. At one point during the year, a total of 15 positions of
employment with the City were unfilled.
26
Management's Discussion and Analysis
City of Columbia Heights' Changes in Net Assets
Governmental Activities Business- Type Activities Totals
2004 2003 2004 2003 2004 2003
Revenues:
Program revenues:
Charges for services $2,293,077 $1,979,230 $11,305,675 $11,183,361 $13,598,752 $13,162,591
Operating grants and
contributions 1,677,743 946,246 46,635 107,775 1,724,378 1,054,021
Capital grants and
contributions 1,767,994 670,208 113,407 1,881,401 670,208
General revenues:
Property taxes 4,989,205 4,306,036 4,989,205 4,306,036
Tax increment collections 972,208 781,439 972,208 781,439
Grants and contributions not
restricted to specific programs 2,337,386 2,712,408 2,337,386 2,712,408
Unrestricted investment earnings 729,456 408,208 215,062 126,671 944,518 534,879
Gain (loss) on disposal of capital assets 103,524 103,524
Total revenues 14,767,069 11,907,299 11,680,779 11,417,807 26,447,848 23,325,106
Expenses:
General government 1,669,721 1,756,434 1,669,721 1,756,434
Public safety 3,640,970 3,630,535 3,640,970 3,630,535
Public works 2,109,060 2,646,859 2,109,060 2,646,859
Culture and recreation 1,904,848 1,909,831 1,904,848 1,909,831
Community development 2,171,407 1,239,030 2,171,407 1,239,030
Interest on long-term debt 387,544 414,297 387,544 414,297
Water 1,637,316 1,903,331 1,637,316 1,903,331
Sewer 1,219,200 1,231,594 1,219,200 1,231,594
Refuse 1,321,730 1,330,272 1,321,730 1,330,272
Storm sewer 158,374 204,895 158,374 204,895
Liquor 6,593,578 6,619,942 6,593,578 6,619,942
Total expenses 11,883,550 11,596,986 10,930,198 11,290,034 22,813,748 22,887,020
Increase (decrease) in
net assets before transfers 2,883,519 310,313 750,581 127,773 3,634,100 438,086
Transfers 377,948 387,613 (377,948) (387,613)
Increase in net assets 3,261,467 697,926 372,633 (259,840) 3,634,100 438,086
Net assets - January 1 33,719,592 33,021,666 13,148,191 13,408,031 46,867,783 46,429,697
Net assets - December 31 $36,981,059 $33,719,592 $13,520,824 $13,148,191 $50,501 ,883 $46,867,783
27
Management's Discussion and Analysis
Below are graphs providing breakdowns of the governmental activities revenues by source and
governmental activities expenditures by function:
Governmental Activities - 2004 Revenues
Grants and contributions not
restricted to specific
programs 15%
Umestricted
investment earnings
5%
Transfers 3%
Charges for services
15%
Operating grants and
contributions 11 %
Tax increment
collections 6%
Property taxes 33%
Capital grants and
contributions 12%
Governmental Activities - 2004 Expenses
Interest on long-
term debt 3%
General government 14%
Public works 18%
Public safety 31 %
28
Management's Discussion and Analysis
Business- Tvue Activities
Business-type activities increased net assets by $372,633. A key element of this increase was as
follows:
. The City of Columbia Heights purchases water for distribution to its residents from the
City of Minneapolis. In conjunction with bringing a new water plant on line in 2004, the
City of Minneapolis revised its pricing formula for its water sales. This resulted in an
average cost savings for the City of Columbia Heights of approximately 28% per unit.
Total water department expenses for 2004 decreased by $266,015 compared to the prior
year, yet charges for services increased $222,648 compared to the prior year.
Below are graphs providing breakdowns of business-type activities revenues by source and
business-type activities expenditures by function:
Business-Type Activities - 2004 Revenues Unrestrictedinvestment
Capital grants and earnings2%
cant ribut ions
Charges for services 97%
29
Management's Discussion and Analysis
Business-Type Activities - 2004 Expenses
Sewerl1%
Refuse 12%
Sewer2%
Financial Analvsis of the Government's Funds
As noted earlier, the City of Columbia Heights uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental Funds. The focus of the City of Columbia Heights' governmental funds is to
provide information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of Columbia Heights' financing requirements. In
particular, unreserved fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Columbia Heights' governmental funds reported
combined ending fund balances of $22,173,602. Of this total, $19,560,592 or 88% is unreserved
fund balance. The remaining $2,613,010 of fund balance is reserved because it has already been
committed as follows:
A. $26,912 to provide for prepaid items.
B. $1,744,041 to provide for real estate held for resale.
C. $842,057 for grant-restricted program expenditures.
The general fund is the chief operating fund of the City of Columbia Heights. Fund balance in
the general fund increased by a total of$716,278 in 2004. Key elements of this increase were:
. Compared to the prior year, license and permit fees increased by $224,839. This
included a $187,358 building permit fee for the aforementioned water treatment
plant.
30
Management's Discussion and Analysis
. The general fund's share of the increase in annual investment income explained
above in the discussion for governmental activities was $119,965.
. $105,268 of the increase to the general fund was net result ofa number of
transfers to and from other funds as authorized by the City Council. These
transfers are detailed in the notes to the financial statements.
. Cost-of-living and other increases in wages and benefits under collective
bargaining agreements were offset by the aforementioned hiring freeze, so that
total actual personnel costs for the general fund in 2004 were approximately the
same as for 2003. This also put 2004 actual costs well below the 2004 general
fund budget. See the discussion below on budgetary higWights.
The Anoka County CDBG fund decreased by $567.
The Economic Development Authority administration fund decreased by $12,630. This was
primarily due to a transfer out to the nonmajor funds in excess of tax revenues collected.
The capital appreciation bonds of 1990 fund increased by $2,683,997. This was due to proceeds
from a new bond issue (referred to above) and a certain transfer in from the nonmajor funds, both
of which will be used in 2005 to refund the 1990 bonds.
The municipal state aid street fund increased by $8,077 due to expenditures and transfers to other
fund for maintenance and construction on state aid streets in 2004 being slightly less than
intergovernmental revenue received in 2004.
F or the Sheffield tax increment financing redevelopment fund, tax increment collections and
expenditures each increased by rougWy the same amount, compared to 2003. By the terms of the
financing agreement, expenditures generally bear a relationship to collections over time. The
fund increased by $29,945 for 2004.
The capital improvement - development fund increased by $881,432 due primarily due to an
$800,000 transfer in from the nonmajor funds for redevelopment projects.
The capital improvements - general government buildings fund increased by $177,956 from
investment income and transfers in from the internal service funds. This increase was in
anticipation of near-term capital improvements to the City's Municipal Service Center, which
includes the City's central garage.
The capital equipment replacement general government fund increased by $216,137. This
resulted from investment income and transfers in from the general fund and the liquor fund being
greater than the City's share of capital equipment charged to this fund. In 2004, this fund also
recognized $225,000 of both revenue and expense, for the second-half of a two-year $450,000
federal grant that subsidized the majority of the cost of quint (ladder) fire truck.
31
Management's Discussion and Analysis
The capital improvements PIR fund decreased by $927,601 primarily due to the expenditure in
2004 of street improvement project financing (bonds) received in 2003.
The nonmajor governmental funds decreased by $1,085,147 for 2004. This was mainly the result
of the $800,000 transfer to the capital improvement - development fund mentioned above.
Proprietary funds. The City of Columbia Heights' proprietary funds provide the same type of
information found in the government-wide financial statements, but in more detail.
The unrestricted net assets (deficit) in the respective proprietary funds are water ($562,137),
sewer $3,064,516, refuse $385,389, storm sewer ($55,807) and liquor $3,219,011. The water,
storm sewer and liquor funds had increases in net assets in 2004 of $22,227 and $220,967
$258,429 respectively. The sewer and refuse funds had decreases in net assets of$206,561 and
$161,692 respectively. Other factors concerning the finances of the proprietary funds have
already been addressed above in the discussion of the City's business-type activities.
Bud2:etarv Hi2:hli2:hts
General Fund
The changes between the original adopted 2004 budget and the final amended 2004 budget
consisted of:
. A reclassification of $587,319 from tax revenue to intergovernmental revenue - market
value homestead credit. In the State of Minnesota, a portion of what a city adopts for its
annual tax levy is paid to the city in the form of a market value homestead credit. At the
time the levy is required under state law to be initially adopted, however, the portion that
will ultimately take the form of a market value homestead credit is not estimable.
. An increase of $97,679 to both budgeted revenue and expenditures to incorporate into the
general fund certain state aid contributed to a retirement plan for the City's paid on-call
firefighters. This previously was accounted for in a separate fund.
. An increase of$21,647 to budgeted police overtime expenditures. This increase was
funded by additional grants and charges for services specifically for this overtime.
. A decrease of $20,482 to transfers in from other funds, to reflect that certain
administrative services previously provided by the general fund to the Housing and
Redevelopment Authority were discontinued in 2004.
32
Management's Discussion and Analysis
For 2004, actual general fund revenues exceeded budget by $294,631. This was primarily due to
actual license and permit revenue exceeding budget by $183,219. This variance relates to the
building permit for the Minneapolis water treatment plant mentioned above.
Actual personnel expenditures for the general fund in 2004 were $331,406 less than budgeted,
due to the hiring freeze mentioned above in the discussion on governmental activities.
Nonpersonnel expenditures, plus transfers out, were $132,969 less than budgeted. This was
attributable in part to other cost containment practices during 2004, such as a freeze on out-of-
town travel.
Additional budgetary comparison for the general fund is provided in Statement 10 of this
financial report.
Cauital Asset and Debt Administration
Capital assets. The City of Columbia Heights' investment in capital assets for its governmental
and business-type activities as of December 31,2004, amounts to $27,875,936 (net of
accumulated depreciation). This investment in capital assets includes land, buildings,
improvements other than buildings, office furniture and fixtures, machinery and equipment,
infrastructure and construction in progress.
Major capital asset events during the current fiscal year included the following:
. The additions to construction in progress for the year included $1,903,337 for Zone 7
street rehabilitation. This brought the total construction in progress at December 31,
2004 for this project to $1,962,623. This project began in 2002.
. The City fire department's first ever quint (ladder) truck was completed and placed in
service at a total cost, including loose equipment, of $596,700.
33
Management's Discussion and Analysis
City of Columbia Heights' Capital Assets
(Net of Depreciation)
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets - not depreciated:
Land $3,103,061 $73 $ $3,103,134
Construction in progress 297,624 2,195,977 (729,540) 1,764,061
Total capital assets not being depreciated 3,400,685 2,196,050 (729,540) 4,867,195
Capital assets - being depreciated:
Buildings and structures 8,400,600 108,621 8,509,221
Improvements 2,991,821 2,991,821
Office furniture and fixtures 307,506 307,506
Machinery and equipment 4,549,945 720,883 5,270,828
Infrastructure 15,389,447 59,408 15,448,855
Total capital assets being depreciated 31,639,319 888,912 0 32,528,231
Less accumulated depreciation for:
Buildings and structures 6,467,641 170,294 6,637,935
Improvements 1,948,627 73,580 2,022,207
Office furniture and fixtures 212,050 24,484 236,534
Machinery and equipment 2,530,689 364,039 2,894,728
Infrastructure 5,777,292 612,718 6,390,010
Total accumulated depreciation 16,936,299 1,245,115 0 18,181,414
Total capital assets being depreciated 14,703,020 (356,203) 0 14,346,817
Governmental activities capital assets - net 18,103,705 1,839,847 (729,540) 19,214,012
Business-type activities:
Capital assets - not depreciated:
Land $340,893 $ $ $340,893
Construction in progress 123,579 649,987 (378,318) 395,248
Total capital assets not being depreciated 464,472 649,987 (378,318) 736,141
Capital assets - being depreciated:
Buildings and structures 660,745 660,745
Improvements 12,014,999 227,194 12,242,193
Office furniture and fixtures 81,014 81,014
Machinery and equipment 1,037,999 268,591 1,306,590
Total capital assets being depreciated 13,794,757 495,785 0 14,290,542
Less accumulated depreciation for:
Buildings and structures 449,489 26,170 475,659
Improvements 4,630,567 313,360 4,943,927
Office furniture and fixtures 81,015 (1) 81,014
Machinery and equipment 804,619 59,540 864,159
Total accumulated depreciation 5,965,690 399,069 0 6,364,759
Total capital assets being depreciated 7,829,067 96,716 0 7,925,783
Business-type activities capital assets - net 8,293,539 746,703 (378,318) 8,661,924
Total capital assets - net $26,397,244 $2,586,550 ($1,107,858) $27,875,936
Additional information on the City of Columbia Heights' capital assets can be found in Note to
the financial statements.
34
Management's Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City of Columbia Heights had total
bonded debt outstanding of $7,524,704. This entire amount was general obligation debt backed
by the full faith and credit of the City of Columbia Heights. In addition, there are specific
revenue sources pledged to repay each of the various components of this debt. General obligation
tax increment debt of $1,279,704 used to finance economic development within the City will be
repaid primarily with the proceeds from new general obligation tax increment bonds issued in
2004 to take advantage of favorable interest rates. Tax increment collections are pledged for the
repayment of the new bonds. These new bonds amount to $1,985,000. Special assessments are
pledged for the repayment of general obligation improvement debt of $1,773,623. Utility
revenues are pledged for the repayment of general obligation revenue debt used to finance utility
improvements. General obligation revenue debt was $2,486,377 at year end.
In addition to bonded debt, at year end there was long-term debt in the amount of $693,861 for
compensated absences.
General obligation tax increment bonds
General obligation improvement bonds
General obligation revenue bonds
Compensated absences
City of Columbia Heights' Outstanding Debt
Governmental Activities Business- Type Activities Totals
2004 2003 2004 2003 2004 2003
$3,264,704 $1,630,288 $ $ $3,264,704 $1,630,288
1,773,623 1,937,828 1,773,623 1,937,828
2,486,377 2,737,171 2,486,377 2,737,171
611,895 604,749 81,966 71,627 693,861 676,376
$5,650,222 $4,172,865 $2,568,343 $2,808,798 $8,218,565 $6,981,663
The City of Columbia Heights maintains an Al rating from Moody's, based on the City's healthy
financial margins, average debt levels and continued tax base growth.
State statute limits the net amount of certain general obligation debt a Minnesota city may issue
to 2% of total estimated market value of the property within the city's taxing jurisdiction. The
current debt limitation under this statute for the City of Columbia Heights is $19,133,440.
However, none of the City's debt outstanding at the end of the current fiscal year is of the type
counted within the statutory limitation.
Additional information on the City of Columbia Heights' long-term debt can be found in Note 7
to the financial statements.
35
Management's Discussion and Analysis
Economic Factors and Next Year's Budgets and Rates
The unemployment rate for Anoka County, which includes the City of Columbia Heights, is
currently 3.9 percent, which is a decrease from a rate of 4.4 percent a year ago. This compares to
the state's current average unemployment rate of 4.1 percent and the current national average
rate of 5.2 percent.
Inflationary trends in the region compare favorably to national trends.
State aid to local government that will be received by the City of Columbia Heights in 2005 is
expected to be $544,730 less than was received in 2004.
All of these factors were considered in preparing the City of Columbia Heights' budget for the
2005 fiscal year.
Requests for information. This financial report is designed to provide a general overview of the
City of Columbia Heights' 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 City of Columbia Heights, Finance Department,
590 40th Avenue NE, Columbia Heights, Minnesota 55421-3878.
36
BASIC FINANCIAL STATEMENTS
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2004
Statement 1
Page 1 of 2
Primary Government
Governmental Business- Type Totals
Assets Activities Activities 2004 2003
Current assets:
Cash and investments $22,587,883 $4,473,888 $27,061,771 $26,753,555
Receivables:
Accounts (net of allowance for uncollectibles) 286,530 960,140 1,246,670 1,166,983
Special assessments - current 358,447 358,447 143,665
Taxes 177,177 177,177 242,917
Interest 176,750 41,946 218,696 223,158
Loans 3,620 3,620 6,545
Due from other governmental units 739,522 114,419 853,941 308,447
Due from other agencies 61,334 61,334 25,150
Internal balances (779,887) 779,887
Prepayments 67,144 69,732 136,876 91,665
Inventory - at cost 49,402 1,644,859 1,694,261 1,435,282
Real estate held for resale 2,494,485 2,494,485 478,313
Total current assets 26,222,407 8,084,871 34,307,278 30,875,680
Noncurrent assets:
Special assessments receivable - noncurrent 1,246,751 1,246,751 1,087,049
Due from other governmental units 155,785 155,785 178,368
Capital assets (net of accumulated depreciation):
Land 3,1 03,134 340,893 3,444,027 3,443,954
Buildings 1,871,286 185,086 2,056,372 2,144,217
Improvements other than buildings 969,614 7,298,266 8,267,880 8,427,625
Office furniture and fixtures 70,972 70,972 95,456
Machinery and equipment 2,376,100 442,431 2,818,531 2,252,634
Infrastructure 9,058,845 9,058,845 9,612,155
Construction in process 1,764,061 395,248 2,159,309 421,203
Total noncurrent assets 20,460,763 8,817,709 29,278,472 27,662,661
Total assets 46,683,170 16,902,580 63,585,750 58,538,341
The accompanying notes are an integral part of these financial statements.
38
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2004
Statement 1
Page 2 of2
Primary Government
Governmental Business- Type Totals
Liabilities Activities Activities 2004 2003
Current liabilities:
Accounts payable $359,920 $580,677 $940,597 $725,959
Accrued salaries and withholdings payable 241,986 59,714 301,700 238,983
Contracts payable - retained percentage 368,967 368,967 181 ,123
Due to other governmental units 47,063 135,859 182,922 662,960
Unearned revenue 774,879 774,879 248,487
Accrued interest payable 2,227,552 37,163 2,264,715 2,574,869
Deposits 31,522 31,522 56,514
Compensated absences payable - current 18,296 2,452 20,748 16,443
Bonds payable - current 1,449,035 265,668 1,714,703 765,584
Total current liabilities 5,519,220 1,081,533 6,600,753 5,470,922
Noncurrent liabilities:
Compensated absences payable - noncurrent 593,599 79,514 673,113 659,933
Bonds payable - noncurrent 3,589,292 2,220,709 5,810,001 5,539,703
Total noncurrent liabilities 4,182,891 2,300,223 6,483,114 6,199,636
Total liabilities 9,702,111 3,381,756 13,083,867 11,670,558
Net assets
Invested in capital assets - net of related debt 14,328,916 6,175,547 20,504,463 19,968,377
Restricted for:
Debt service 927,065 337,389 1,264,454 923,771
Other expenditures required under debt covenant 27,801 27,801
Tax increment purposes 498,371 498,371 476,608
Grant programs 832,068 832,068 4,666
Unrestricted 20,366,838 7,007,888 27,374,726 25,494,361
Total net assets $36,981,059 $13,520,824 $50,501,883 $46,867,783
The accompanying notes are an integral part of these financial statements.
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
F or The Year Ended December 31, 2004
Charges For
Expenses Services
Functions/Programs
Primary government:
Government activities:
General government $1,669,721 $203,344
Public safety 3,640,970 488,216
Public works 2,109,060 48,253
Culture and recreation 1,904,848 239,352
Community development 2,171,407 1,313,912
Interest on long-term debt 387,544
Total government activities 11,883,550 2,293,077
Business-type activities:
Water 1,637,316 1,771,153
Sewer 1,219,200 1,019,532
Refuse 1,321,730 1,255,011
Storm sewer 158,374 284,223
Liquor 6,593,578 6,975,756
Total business-type activities 10,930,198 11,305,675
Total primary government $22,813,748 $13,598,752
The accompanying notes are an integral part of these financial statements.
40
Statement 2
Program Revenues
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Business- Type
Activities 2004
Totals
2003
$ $ ($1,466,377) $ ($1,466,377) ($1,032,1 03)
436,460 225,000 (2,491,294) (2,491,294) (2,669,669)
213,801 1,315,007 (531,999) (531,999) (1,532,375)
72,269 50,250 (1,542,977) (1,542,977) (1,761,021 )
955,213 177,737 275,455 275,455 (591,837)
(387,544) (387,544) (414,297)
1,677,743 1,767,994 (6,144,736) 0 (6,144,736) (8,001,302)
133,837 133,837 (354,826)
(199,668) (199,668) 11 ,153
46,635 (20,084) (20,084) (28,515)
113,407 239,256 239,256 32,316
382,178 382,178 340,974
46,635 113,407 0 535,519 535,519 1,102
$1,724,378 $1,881,401 ($6,144,736) $535,519 ($5,609,217) ($8,000,200)
General revenues:
Property taxes $4,989,205 $ $4,989,205 $4,306,036
Tax increment collections 972,208 972,208 781,439
Grants and contributions not
restricted to specific programs 2,337,386 2,337,386 2,712,408
Unrestricted investment earnings 729,456 215,062 944,518 534,879
Gain on disposal of capital assets 103,524
Transfers 377,948 (377,948)
Total general revenues and transfers 9,406,203 (162,886) 9,243,317 8,438,286
Change in net assets 3,261,467 372,633 3,634,100 438,086
Net assets - beginning, as restated (Note 15) 33,719,592 13,148,191 46,867,783 46,429,697
Net assets - ending $36,981,059 $13,520,824 $50,501,883 $46,867,783
The accompanying notes are an integral part of these financial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2004
Economic
Anoka Development Capital
County Authority Admin Appreciation
General CDBG (Component Unit) Bonds of 1990
Assets
Cash and investments $3,895,759 $ $118,581 $4,346
Cash and investments with fiscal agent 2,662,375
Receivables:
Accounts 25,628
Special assessments
Taxes 149,962 6,506
Interest 37,679 101 17,276
Loans
Due from other governmental units 255,541 159,961
Due from other agencies 61,334
Interfund receivable 189,640
Prepayments 23,302
Real estate held for resale 750,444 1,397,022
Total assets $4,638,845 $910,405 $1,522,210 $2,683,997
Liabilities and Fund Balances
Liabilities:
Accounts payable $190,771 $ $ $
Accrued salaries and withholdings payable 205,324
Contracts payable - retained percentage
Due to other governmental units 1,254
Interfund payable 188,597 1,439,686
Deferred revenue 101,386 750,444 4,475
Deposits 1,000
Total liabilities 498,735 940,041 1,444,161 0
Fund balances:
Reserved for:
Prepayments 23,302
Real estate held for resale 1,397,022
Program expenditures
Debt service 2,683,997
Unreserved:
Designated reported in:
General fund 3,743,344
Special revenue funds
Debt service funds
Capital projects funds
Undesignated reported in:
General fund 373,464
Special revenue funds (29,636) (1,318,973)
Debt service funds
Capital projects funds
Total fund balances 4,140,110 (29,636) 78,049 2,683,997
Total liabilities and fund balances $4,638,845 $910,405 $1,522,210 $2,683,997
The accompanying notes are an integral part ofthese financial statements.
42
Statement 3
$1,587
1,237
47,339
$
$69,109
$
$
156,300
420
13
169,168
469,293
219,331
469,293
225,829
13
o
254,406
27,801
1,251,604
3,373,534
4,731,313
(136,821)
(136,821)
$82,510
(434,473)
(434,473)
$34,820
1,506,010
$1,731,839
3,373,534
$3,373,547
4,759,114
$4,759,114
Fund balance reported above
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are not
financial resources, and therefore, are not reported in the funds
Other long-term assets are not available to pay for current-
period expenditures and, therefore, are deferred in the funds.
Internal service funds are used by management to charge the costs of garage, energy management,
data processing, insurance and compensated absences to individual funds. With the exception of
the data processing fund which is a business-type fund, the assets and liabilities ofthe internal
service funds are included in the governmental activities in the statement of net assets.
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the funds.
Net assets of governmental activities
$12,704
1,555
164,315
1,598,031
9,439
1,786,044
71,500
16,265
87,765
$1,873,809
$71,315
28,514
1,000
45,389
116,577
44,301
21,083
328,179
3,610
21,113
814,256
138,207
1,080,743
3,223,770
557,953
(36,096)
342,397
6,145,953
$6,474,132
43
The accompanying notes are an integral part ofthese financial statements.
$
(1,865,112)
(1,865,112)
o
($1,865,112)
$345,486
236,630
368,967
47,063
518,209
2,498,637
31,522
4,046,514
26,912
1,744,041
842,057
2,683,997
3,743,344
138,207
1,080,743
12,596,486
373,464
(790,656)
(36,096)
(228,897)
22,173,602
$26,220,116
$22,173,602
19,121,900
1,723,758
1,227,678
(7,265,879)
$36,981,059
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31,2004
Economic
Anoka Development Capital Municipal
County Authority Admin Appreciation State Aid
Revenues: General CDBG (Component Unit) Bonds of 1990 Street Fund
Taxes $4,336,802 $ - $197,418 $ - $ -
Tax increment collections
Special assessments
Licenses and permits 506,319
Intergovernmental 2,517,347 525,544 12,889 463,321
Charges for services 444,856
Fines and forfeitures 140,282
Investment income:
Interest and dividends 178,937 482 7,982
Change in fair value (7,756) (21) (3,033)
Other revenues 31,025
Total revenues 8,147,812 525,544 210,768 4,949 463,321
Expenditures:
Current:
General government 1,557,562
Public safety 3,462,092
Public works 1,125,984 73,399
Culture and recreation 1,210,627
Community development 567 750
Capital outlay:
Public safety
Public works 123,720 77,039
Culture and recreation 56,217
Community development
Debt service:
Principal retirement 350,584
Interest and fiscal charges 570,166
Issuance costs 29,374
Miscellaneous 138
Developer incentives
Contractual services
Total expenditures 7,536,202 567 750 950,262 150,438
Revenues over (under) expenditures 611,610 524,977 210,018 (945,313) 312,883
Other financing sources (uses):
Bond proceeds 1,948,923
Bond discount (5,827)
Transfers in 456,634 1,686,214
Transfers out (351,366) (525,544) (222,648) (304,806)
Total other financing sources (uses) 105,268 (525,544) (222,648) 3,629,310 (304,806)
Net change in fund balance 716,878 (567) (12,630) 2,683,997 8,077
Fund balance (deficit) - January 1 3,423,232 (29,069) 90,679 (144,898)
Fund balance (deficit) - December 31 $4,140,110 ($29,636) $78,049 $2,683,997 ($136,821)
The accompanying notes are an integral part of these financial statements.
44
Statement 4
Capital Capital
Sheffield Capital Improvements Equipment Capital Other Intra Total
TIF Improvement General Gov't Replacement Improvements Governmental Activity Governmental
Redevelopment Development Buildings General Gov't PIR Fund Funds Eliminations Funds
$ - $ - $ - $ - $ - $433,585 $ - $4,967,805
46,386 923,240 969,626
671,357 671,357
80,638 586,957
6,763 376,341 225,000 560,661 4,687,866
286,948 18,061 692,573 1,442,438
140,282
419 12,070 122,778 173,927 17,107 215,884 729,586
(18) (523) (5,322) (7,539) (742) (9,357) (34,311 )
1,100 27,801 212 116,437 176,575
53,550 675,936 117,456 419,189 786,633 2,933,023 0 14,338,181
18,671 1,576,233
1,711 151,397 3,615,200
14,484 97,523 1,311,390
1,295 660,256 1,872,178
23,605 972,674 997,596
266,190 210,321 476,511
1,349,203 87,597 1,637,559
19,372 8,366 83,955
580,168 102,771 682,939
164,205 514,789
68,058 638,224
544 29,918
14,156 14,294
67,866 67,866
575,880 2,685 578,565
23,605 1,156,048 0 303,052 1,446,726 2,529,567 0 14,097,217
29,945 (480,112) 117,456 116,137 (660,093) 403,456 0 240,964
36,077 1,985,000
(108) (5,935)
1,361,544 60,500 100,000 275,345 1,123,066 (4,224,366) 838,937
(542,853) (2,647,638) 4,224,366 (370,489)
0 1,361,544 60,500 100,000 (267,508) (1,488,603) 0 2,447,513
29,945 881,432 177,956 216,137 (927,601) (1,085,147) 0 2,688,477
(464,418) 624,578 3,195,578 4,542,977 1,015,366 7,231,100 19,485,125
($434,473) $1,506,010 $3,373,534 $4,759,114 $87,765 $6,145,953 $0 $22,173,602
The accompanying notes are an integral part of these financial statements.
45
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46
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
F or The Year Ended December 31, 2004
Statement 5
2004
Amounts reported for governmental activities in the
statement of activities (Statement 2) are different because:
Net changes in fund balances - total governmental funds (Statement 4)
$2,688,477
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
1,142,356
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
394,707
The issuance of long-term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. This
amount is the net effect of these differences in the treatment of long-term debt
and related items.
(1,470,211)
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
300,828
The net revenue of certain activities of internal service funds are reported
with governmental activities.
205,310
Change in net assets of governmental activities (Statement 2)
$3,261,467
The accompanying notes are an integral part of these financial statements.
47
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31,2004
Assets:
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for uncollectibles)
Interest
Due from other govemmental units
Interfund receivable
Prepayments
Inventory - at cost
Total current assets
Noncurrent assets:
Due from other govemmental units
Capital assets:
Land
Buildings
Improvements other than buildings
Office fumiture and fixtures
Machinery and equipment
Construction in process
Total capital assets
Less: accumulated depreciation
Net capital assets
Total noncurrent assets
Total assets
Liabilities:
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Due to other govemmental units
Interfund payable
Accrued interest payable
Deposits
Compensated absences payable - current
Bonds payable - current
Total current liabilities
Noncurrent liabilities:
Compensated absences payable - noncurrent
Bonds payable - noncurrent
Total noncurrent liabilities
Total liabilities
Net assets:
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
7,544 6,975
3,189 19,572
73,228
1,425,672
23,592 436
430 430
158,258 3,865
1,691,913 31,278
13,943 13,943
1,471,587 21,605
1,485,530 35,548
3,177,443 66,826
3,052,136 2,441,010
229,021 4,823
(562,137) 3,064,516
$2,719,020 $5,510,349
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds
Net assets of business-type activities
The accompanying notes are an integral part of these financial statements.
48
90,471
90,471
o
90,471
51,391
385,389
$436,780
Statement 6
Business-Type Activities - Enterprise Funds Total
Intra Activity Total Intemal Proprietary
Storm Sewer Liquor Eliminations Enterprise Funds Service Funds Funds
$119,466 $2,081,518 $ - $3,722,253 $2,683,406 $6,405,659
61,678 1,678 960,140 960,140
681 15,408 41,719 7,751 49,470
113,407 1,012 114,419 114,419
24,273 (1,681,447) 476,257 41,952 518,209
5,534 69,732 40,232 109,964
1,640,919 1,644,859 49,402 1,694,261
319,505 3,746,069 (1,681,447) 7,029,379 2,822,743 9,852,122
155,785 155,785
254,724 4,360 340,893 340,893
162,239 660,745 371,383 1,032,128
1,148,708 81,198 12,242,191 119,846 12,362,037
14,791 81,014 81,014
349,632 1,267,745 115,888 1,383,633
100,538 395,248 395,248
1,503,970 612,220 0 14,987,836 607,117 15,594,953
(156,861) (509,609) (6,338,264) (502,653) (6,840,917)
1,347,109 102,611 0 8,649,572 104,464 8,754,036
1,347,109 102,611 0 8,805,357 104,464 8,909,821
1,666,614 3,848,680 (1,681,447) 15,834,736 2,927,207 18,761,943
2,191 388,738 495,919 99,192 595,111
650 31,468 54,879 10,191 65,070
16 62,615 135,859 135,859
255,775 (1,681,447)
13,135 37,163 37,163
1,323 2,183 18,565 20,748
103,545 265,668 265,668
375,312 484,144 (1,681,447) 991,671 127,948 1,119,619
42,914 70,800 602,313 673,113
727,517 2,220,709 2,220,709
727,517 42,914 0 2,291,509 602,313 2,893,822
1,102,829 527,058 (1,681,447) 3,283,180 730,261 4,013,441
516,047 102,611 6,163,195 104,464 6,267,659
103,545 337,389 337,389
(55,807) 3,219,011 6,050,972 2,092,482 8,143,454
$563,785 $3,321,622 $0 12,551,556 $2,196,946 $14,748,502
969,268
$13,520,824
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
F or The Year Ended December 31, 2004
Business- Type Activities - Enterprise Funds
Water Sewer Refuse
$74,554 $1,011,419 $1,255,011
1,686,299
1,760,853 1,011,419 1,255,011
1,396,514 1,059,031 1,274,023
180,558 142,041 11,169
1,577,072 1,201,072 1,285,192
183,781 (189,653) (30,181)
Operating revenues:
Charges for services
Charges for sales
Total operating revenues
Operating expenses:
Cost of sales, services and goods sold
Operating expense
Depreciation
Total operating expenses
Net income (loss) from operations
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Intergovernmental
Miscellaneous revenues
Interest and fiscal charges
Miscellaneous expenses
Total nonoperating revenues (expenses)
20,872 113,048
(905) (3,839)
10,300 8,113
(57,387) (1,067)
(1,249)
(27,120) 115,006
156,661 (74,647)
212,050 272,505
(346,484) (404,419)
(134,434) (131,914)
22,227 (206,561 )
2,696,793 5,716,910
$2,719,020 $5,510,349
12,299
(533)
46,635
58,401
Net income (loss) before transfers
28,220
Transfers in
Transfers out
Total transfers
(189,912)
(189,912)
Change in net assets
(161,692)
Net assets - beginning
598,472
Net assets - ending
$436,780
Change in net assets as reported above
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities
The notes to the financial statements are an integral part of this statement.
50
Statement 7
Business- Type Activities - Enterprise Funds Total
Intra Activity Total Internal Proprietary
Storm Sewer Liquor Eliminations Enterprise Funds Service Funds Funds
$284,223 $ $ $2,625,207 $1,010,497 $3,635,704
6,946,058 8,632,357 75,939 8,708,296
284,223 6,946,058 0 11,257,564 1,086,436 12,344,000
86,938 5,318,331 9,134,837 831,349 9,966,186
1,243,987 1,243,987 22,452 1,266,439
51,998 12,947 398,713 32,402 431,115
138,936 6,575,265 0 10,777,537 886,203 11,663,740
145,287 370,793 0 480,027 200,233 680,260
3,230 73,172 222,621 36,804 259,425
(140) (3,172) (8,589) (1,594) (10,183)
113,407 160,042 160,042
29,698 48,111 485 48,596
(32,048) (90,502) (90,502)
(1,249) (1,249)
84,449 99,698 0 330,434 35,695 366,129
229,736 470,491 0 810,461 235,928 1,046,389
465,493 (894,249) 55,799 303,143 358,942
(474,262) (212,062) 894,249 (732,890) (94,500) (827,390)
(8,769) (212,062) 0 (677,091) 208,643 (468,448)
220,967 258,429 0 133,370 444,571 577,941
342,818 3,063,193 12,418,186 1,752,375 14,170,561
$563,785 $3,321,622 $0 $12,551,556 $2,196,946 $14,748,502
$133,370
239,263
$372,633
The notes to the financial statements are an integral part of this statement.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
F or The Year Ended December 31, 2004
Business- Type Activities - Enterprise Funds
Water Sewer
$1,733,909 $1,048,199
(1,164,907) (841,864)
(254,243) (211,250)
10,300 8,113
(1,249)
325,059 1,949
212,050 272,505
(346,484) (404,419)
(814,977)
307,986
451,787
625,339 (946,891)
(292,057) (306,433)
(149,145) (3,666)
(64,037) (1,124)
(505,239) (311,223)
Cash flows from operating activities:
Cash received from customers
Cash received from interfund goods and services provided
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Interfund receivable advanced to other funds
Interfund receivable repaid by other funds
Interfund payable advanced from other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds of capital grants and contributions
Principal payments - bonds
Interest and fiscal charges
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
21,671 118,728
(905) (3,839)
20,766 114,889
465,925 (1,141,276)
5,807 2,003,712
$471,732 $862,436
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
The notes to the financial statements are an integral part of this statement.
52
Statement 8
Page 1 of 2
Business- Type Activities - Enterprise Funds Total
Total Internal Proprietary
Refuse Storm Sewer Liquor Enterprise Funds Service Funds Funds
$1,247,253 $271,581 $6,944,957 $11,245,899 $ $11,245,899
1,1 09,501 1,109,501
(1,287,348) (76,889) (5,941,065) (9,312,073) (509,512) (9,821,585)
(658) (7,346) (798,087) (1,271,584) (281,155) (1,552,739)
46,635 29,698 94,746 485 95,231
(1,249) (1,249)
5,882 187,346 235,503 755,739 319,319 1,075,058
465,493 950,048 303,143 1,253,191
(189,912) (474,262) (212,062) (1,627,139) (94,500) (1,721,639)
(24,273) (839,250) (41,952) (881,202)
307,986 307,986
93,082 544,869 544,869
(189,912) 60,040 (212,062) (663,486) 166,691 (496,795)
(96,003) (60,251) (754,744) (12,705) (767,449)
(97,983) (250,794) (250,794)
(34,668) (99,829) (99,829)
0 (228,654) (60,251) (1,1 05,367) (12,705) (1,118,072)
13,770 4,635 74,901 233,705 35,667 269,372
(533) (140) (3,172) (8,589) (1,594) (10,183)
13,237 4,495 71,729 225,116 34,073 259,189
(170,793) 23,227 34,919 (787,998) 507,378 (280,620)
357,894 96,239 2,046,599 4,510,251 2,176,028 6,686,279
$187,101 $119,466 $2,081,518 $3,722,253 $2,683,406 $6,405,659
The notes to the financial statements are an integral part of this statement.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
F or The Year Ended December 31, 2004
Business- Type Activities - Enterprise Funds
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
(Increase) decrease in inventory, at cost
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued
salaries and withholdings payable
Increase (decrease) in due to other governmental units
Increase ( decrease) in deposits
Increase (decrease) in compensated absences payable
Total adjustments
Net cash flows from operating activities
The notes to the financial statements are an integral part of this statement.
54
Business- Type Activities - Enterprise Funds Total
Total Internal Proprietary
Refuse Storm Sewer Liquor Enterprise Funds Service Funds Funds
($30,181) $145,287 $370,793 $480,027 $200,233 $680,260
46,635 29,698 94,746 $485 95,231
(1,249) (1,249)
11 ,169 51,998 12,947 398,713 32,402 431,115
(7,758) (12,644) (1,101) (35,675) 2,281 (33,394)
853 28,605 15,789 44,394
(93) (7,022) (29,379) (36,401 )
(259,318) (259,959) 980 (258,979)
(13,983) 2,189 76,114 59,879 83,328 143,207
500 7,977 24,390 4,144 28,534
16 (8,844) (31,401) (31,401)
(3,744) (3,744)
6,477 8,429 9,056 17,485
36,063 42,059 (135,290) 275,712 119,086 394,798
$5,882 $187,346 $235,503 $755,739 $319,319 $1,075,058
The notes to the financial statements are an integral part of this statement.
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2004
Statement 9
2004
Assets:
Cash and investments
Receivables:
Accounts
Due from other governmental units
Prepayments
Total assets
$127,037
216
19,081
23,884
170,218
Liabilities:
Accounts payable
Due to other governmental units
Other liabilities
Total liabilities
8,430
160,197
1,591
170,218
Net assets
$
The notes to the financial statements are an integral part of this statement.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Columbia Heights was incorporated in 1898. The City is governed by a Council composed of an
elected mayor and four council members. The Council exercises legislative authority and determines all matters of
policy. The Manager, who is appointed by the Council, is responsible for the proper administration of all affairs
relating to the City.
The financial statements of the City of Columbia Heights have been prepared in conformity with generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB).
The following is a summary of the significant policies.
A. FINANCIAL REPORTING ENTITY
The component units discussed below are included in the City's reporting entity because of the
significance of their operational or financial relationships with the City.
The City of Columbia Heights has two component units - the Housing and Redevelopment Authority
(HRA) and the Economic Development Authority (EDA). The HRA and the EDA are considered
component units because the governing boards are substantively the same as that of the City and because
the City is in a relationship of financial benefit or burden with each of the entities.
The financial position and results of operations of the HRA and the EDA component units are presented
using the blended method. Blended component units, although legally separate entities, are, in substance,
part of the City's operations and as such are reported as Special Revenue Funds and Capital Project Funds.
The component units include Governmental Funds using the modified accrual basis of accounting.
Separate financial statements for the HRA and EDA are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in
net assets) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary 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 are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
government.
The government reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Anoka County CDBG Fund was established to account for the revenues and expenditures
associated with federal community development block grants and HOME funds.
The Economic Development Authority Administration Fund is a fund of the component unit,
Economic Development Authority. It was established to account for revenues and expenditures
associated with business development and community redevelopment projects in the City.
The Capital Improvement Development Fund is used to account for improvements to various
development areas within the City.
The Municipal State Aid Street Fund is maintained according to State Statue to account for
maintenance and construction of streets of municipal state aid systems.
The Sheffield Tax Increment Financing Redevelopment Fund was established to separate tax increment
collections funding the redevelopment of the area of the City identified as Sheffield neighborhood.
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The Capital Appreciation Bonds of 1990 Fund was established to account for the accumulation of
resources for the payment of principal and interest costs.
The Capital Improvements - General Government Buildings Fund was established to account for
improvements to municipal buildings including the library, municipal garage and city hall.
The Capital Equipment Replacement - General Government Fund was established to account for the
replacement of capital assets as needed.
The Capital Improvement - PIR Fund was established to account for projects that will be fully
assessed to the affected properties.
The government reports the following major proprietary funds:
The Water Fund accounts for revenue and expenses associated with water services to area residents.
The Sewer Fund accounts for revenues and expenses associated with sewer disposal within the City.
The Refuse Fund accounts for revenues and expenses associated with organized collection of refuse
and recycling within the City.
The Storm Sewer Fund accounts for revenues and expenses associated with storm water disposal.
The Liquor Fund accounts for revenues and expenses associated with the operation of three off-sale
liquor stores.
Additionally, the government reports the following fund types:
Internal Service Funds account for central garage, data processing, insurance, and compensated
absences services provided to other departments of the government on a cost reimbursement basis.
Agency - The permit surcharge agency fund is used to account for SAC charges and surcharges
collected for and remitted to the State of Minnesota. The escrow agency fund accounts for payroll
related fees collected for other government agencies.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary-fund financial statements to the extent that those
standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance for their business-type
activities and enterprise funds, subject to this same limitation. The government has elected not to follow
subsequent private-sector guidance.
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, are similarly treated when they involve other funds of the City of Columbia Heights. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water, sewer, refuse, storm sewer and liquor operations enterprise funds and of the 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.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
The City does not use encumbrance accounting.
D. BUDGETARY DATA
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
on January 1 of the following year. At least one special Council meeting is conducted to obtain public
comments as required by the State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 for the General and certain Special Revenue
Funds. The budgets are prepared by fund, function, and activity. The budgets are adopted on a basis
consistent with generally accepted accounting principles and all appropriations lapse at the end of the
budget year to the extent that they have not been expended. Total expenditures appropriated in the budget
resolution may not legally exceed the estimated revenues available from various sources.
Formal budgetary integration is employed as a management control device during the year. Budget
revisions between functions or activities may be made by the City Manager. Budget revisions at the fund
level are authorized by the City Council in accordance with the City Charter at the request of the City
Manager. The legal level of budgetary control is therefore at the fund level.
The City does not use encumbrance accounting.
E. CASH AND INVESTMENTS
Cash balances from all funds of the City are pooled and invested to the extent available in authorized
investments. Investments are stated at fair value, based upon quoted market prices. Investment income is
allocated to the individual funds on the basis of applicable cash balance participation by each fund using an
average of monthly beginning cash and investment balances.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable
in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on
the government-wide financial statements.
F. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. Short-term interfund loans are classified as "interfund receivables/payables." All
short-term interfund receivables and payables at December 31 are planned to be eliminated in the
subsequent year. Long-term interfund loans are classified as "interfund loan receivable/payable." Any
residual balances outstanding between the governmental activities and business-type activities are reported
in the government-wide financial statements as "internal balances."
Property taxes and special assessments have been reported net of estimated uncollectible accounts. (See
Note IG and H) Because utility bills are considered liens on property, no estimated uncollectible amounts
are established. Uncollectible amounts are not material for other receivables and have not been reported.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes
are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the
County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent
collections for November and December are received the following January. The City has no ability to
enforce payment of property taxes by property owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received by
the City in July, December and January are recognized as revenue for the current year. Taxes collected by
the County by December 31 (remitted to the City the following January) and taxes and credits not received
at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent
taxes not collected by the City in January is fully offset by deferred revenue because they are not available
to finance current expenditures.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with state statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Property owners
are allowed to (and often do) prepay future installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Councilor court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of
sales from tax forfeit properties are allocated first to the County's costs of administering all tax forfeit
properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless
it is homesteaded, agricultural or seasonal recreational land, in which event the property is subject to such
sale after five years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by the
City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and available to
finance expenditures of the current fiscal period. In practice, current and delinquent special assessments
received by the City are recognized as revenue for the current year. Special assessments that are collected
by the County by December 31 (remitted to the City the following January) are also recognized as revenue
for the current year. All remaining delinquent, deferred and special deferred assessments receivable in
governmental funds are completely offset by deferred revenues.
I. INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
These funds do not maintain material amounts of inventories. Real estate held for resale is valued at the
lower of cost or market.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first-
out (FIFO) method.
J. PREP AID ITEMS
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.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
K CAPITAL ASSETS
Capital assets, which include land, buildings, improvements, office furniture and fixtures, machinery and
equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an estimated useful life in excess of one year
and an initial individual cost of more than the following:
Capitalization Threshold
Land
Buildings and structures
Improvements other than buildings
Machinery and equipment
Furniture and fixtures
Infrastructure
$1
25,000
25,000
5,000
5,000
250,000
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Infrastructure assets acquired prior to June 30, 1980 are not recorded. Donated capital assets are recorded
at estimated fair market value at the date of donation. 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.
In the case of initial capitalization of general infrastructure assets (i.e., those reported by governmental
activities) the City chose to include only those assets constructed since 1980. The City was able to
estimate the historical cost from project files.
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, 2004, no interest was
capitalized in connection with construction in progress.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated
using the straight line method over the following estimated useful lives:
Capital Assets
Buildings and structures
Machinery and equipment
Furniture and fixtures
Other park improvements
Streets
Distribution and collection systems
20 - 50 years
3 - 10 years
5 - 10 years
20 - 50 years
20-50 years
20-60 years
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
L. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation pay and one-third of sick pay is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental funds only
if they have matured, for example, as a result of employee resignations and retirements. In accordance
with the provisions of Statement of Government Accounting Standards No. 16, Accountingfor
Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay
benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that is
vested as severance pay.
Typically, resources from the compensated absences fund are used to liquidate the liability for
compensated absences.
M. LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
N. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for amounts not
available for appropriation or legally segregated for a specific future use. Designated fund balances
represent tentative plans for future use of financial resources.
O. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, 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. Interfund loans are reported as an
interfund loan receivable or payable which offsets the movement of cash between funds. All other
interfund transactions are reported as transfers.
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
P. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial statements
during the reporting period. Actual results could differ from such estimates.
Q. COMPARATIVE DATA/RECLASSIFICATIONS
Comparative total data for the prior year have been presented in the accompanying financial statements in
order to provide an understanding of the changes in the City's financial position and operations. Also,
certain amounts presented in the prior year data have been reclassified in order to be consistent with the
current year's presentation.
R. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance - total
governmental funds and net assets - governmental activities as reported in the government-wide
statement of net assets. One element of that reconciliation explains that "long-term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not reported
in the funds." The details of this ($7,265,879) difference are as follows:
Bonds payable
Accrued interest payable
($5,038,327)
(2,227,552)
Net adjustment to reduce fund balance - total governmental
funds to arrive at net assets of governmental activities
($7,265,879)
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCES AND
THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances includes a
reconciliation between net changes in fund balances - total governmental funds and changes in net
assets of governmental activities as reported in the government-wide statement of activities. One
element of that reconciliation explains that "Governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense." The details of this $1,142,356 difference
are as follows:
Capital outlay
Depreciation expense
$2,355,420
(1,213,064)
Net adjustment to increase net changes in fund balance -
total governmental funds to arrive at changes in net
assets of governmental activities.
$1,142,356
Another element of that reconciliation states, "Revenues on the Statement of Activities that do not
provide current financial resources are not reported as revenues in the funds." The details of this
$394,707 difference are as follows:
General property taxes deferred revenue:
At December 31, 2003
At December 31, 2004
Tax increment taxes deferred revenue:
At December 31, 2003
At December 31, 2004
Special assessments deferred revenue:
At December 31, 2003
At December 31, 2004
Loans receivable - deferred revenue:
At December 31, 2003
At December 31, 2004
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities.
($84,462)
105,861
(13,666)
16,248
(1,224,380)
1,598,031
( 6,545)
3,620
$394,707
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases)
provides current financial resources to governmental funds, while the repayment of the long-term debt
consumes the current financial resources of governmental funds." Neither transaction, however, has
any effect on net assets. The details of this ($1,470,211) difference are as follows:
Debt issued
Principal repayments:
General obligation debt - tax increment
General obligation debt - improvement
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities.
($1,985,000)
350,584
164,205
($1,470,211)
S. STATEMENT OF CASH FLOWS
F or purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the
City-wide cash and investment management pool is considered to be cash equivalents.
Note 2
DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds of the City. Each fund type's
portion of this pool is displayed on the combined balance sheet as "Total Cash and Investments." An indication of
the level of risk assumed by the City at year-end is categorized as follows for the City's cash and investments.
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which 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.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes, treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rates "A" or
better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated "AA" or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
(5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's
Investors Service, Inc., or Standard & Poor's Corporation; and
(6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
Balances at December 31,2004 are as follows:
Bank
Balances
Carrying
Amount
1) Insured or collaterized by securities held by
the City or its agent in the City's name.
$ 1,512,663
$ 1,203,676
2) Collaterlized with securities held by pledging
the institution trust department in the City's name
3) Uncollateralized or collateralized with securities
not in the City's name.
Total
$ 1,512,663
$ 1,203,676
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities,
or organizations created by an act of congress, excluding mortgage-backed securities defined as high
risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
(1) any security which is a general obligation of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service.
(2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated "AA" or better by a national bond rating service; and
(3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the
State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a
bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7, 469.178, subdivision 5 or 475.61, subdivision 6.
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Investment balances at December 31, 2004 are as follows:
Custodial Credit Risk Category
2 3
Carrying
Amount At
Fair Value
U.S. government securities
(including securities insured
by the U. S. Government)
$23,988,551
$
$
$23,988,551
Money market funds
1,990,395
Total investments
25,978,946
Deposits
Cash on hand
Less fidicuiary fund cash
1,203,676
6,186
(127,037)
Total cash and investments
$27,061,771
Note 3
RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2004 are as follows:
Special assessments receivable
Due from other governmental units
Major Funds
Capital
Improvement
PIR Fund
$1,246,751
Sewer
Total
$1,246,751
155,785
$
155,785
Total
$1,246,751
$155,785
$1,402,536
As of January 1, 1996, the Metropolitan Council (MCES) assumed ownership of an existing interceptor pursuant to
an agreement with the City of Hilltop regarding usage of interceptors owned and maintained by the City of
Columbia Heights. The MCES acquired the interceptor at a cost of $330,414. This amount is being amortized
through current value payments from MCES over a 15-year period with interest at 4%. As of December 31, 2004, a
balance of $155,785 remained to be collected over the next six years. This receivable is presented as due from other
governmental units in the Sewer Utility Fund.
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to
be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in
connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the
various components of deferred revenue and unearned revenue reported in the governmental funds were as follows:
Unavailable Unearned
$101,386 $
4,475
16,248
20,265
1,577,766
3,620
24,433
750,444
$1,723,760 $77 4,877
Delinquent property taxes receivable (general fund)
Delinquent property taxes receivable (Economic Development Authority Administration fund)
Delinquent tax increment (nonmajor funds)
Delinquent special assessments (capital improvements - FIR fund)
Special assessments not yet due (capital improvements - FIR fund)
Loans receivable (nonmajor funds)
Grant drawdowns prior to meeting all eligibility requirements (nonmajor funds)
Rental fees received but unearned (nonmajor funds)
Real estate held for resale - unearned grant revenue (Anoka County CDBG fund)
Total deferred/unearned revenue for governmental funds
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2004, is as follows:
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets - not depreciated:
Land $3,103,061 $73 $ $3,103,134
Construction in progress 297,624 2,195,977 (729,540) 1,764,061
Total capital assets not being depreciated 3,400,685 2,196,050 (729,540) 4,867,195
Capital assets - being depreciated:
Buildings and structures 8,400,600 108,621 8,509,221
Improvements 2,991,821 2,991,821
Office furniture and fixtures 307,506 307,506
Machinery and equipment 4,549,945 720,883 5,270,828
Infrastructure 15,389,447 59,408 15,448,855
Total capital assets being depreciated 31,639,319 888,912 0 32,528,231
Less accumulated depreciation for:
Buildings and structures 6,467,641 170,294 6,637,935
Improvements 1,948,627 73,580 2,022,207
Office furniture and fixtures 212,050 24,484 236,534
Machinery and equipment 2,530,689 364,039 2,894,728
Infrastructure 5,777,292 612,718 6,390,01 0
Total accumulated depreciation 16,936,299 1,245,115 0 18,181,414
Total capital assets being depreciated 14,703,020 (356,203) 0 14,346,817
Governmental activities capital assets - net 18,103,705 1,839,847 (729,540) 19,214,012
Business-type activities:
Capital assets - not depreciated:
Land $340,893 $ $ $340,893
Construction in progress 123,579 649,987 (378,318) 395,248
Total capital assets not being depreciated 464,472 649,987 (378,318) 736,141
Capital assets - being depreciated:
Buildings and structures 660,745 660,745
Improvements 12,014,999 227,194 12,242,193
Office furniture and fixtures 81,014 81,014
Machinery and equipment 1,037,999 268,591 1,306,590
Total capital assets being depreciated 13,794,757 495,785 0 14,290,542
Less accumulated depreciation for:
Buildings and structures 449,489 26,170 475,659
Improvements 4,630,567 313,360 4,943,927
Office furniture and fixtures 81,015 (1 ) 81,014
Machinery and equipment 804,619 59,540 864,159
Total accumulated depreciation 5,965,690 399,069 0 6,364,759
Total capital assets being depreciated 7,829,067 96,716 0 7,925,783
Business-type activities capital assets - net 8,293,539 746,703 (378,318) 8,661,924
Total capital assets - net $26,397,244 $2,586,550 ($1,107,858) $27,875,936
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Depreciation expense was charged to functions/programs of the primary government - governmental activities as
follows:
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Community development
Capital assets held by the City's internal
service fund (Central Garage) is charged
to various functions based on their usage
of the assets
Total governmental depreciation expense
$58,605
148,054
824,525
82,558
99,324
32,049
$1,245,115
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water
Sewer
Refuse
Storm sewer
Liquor
Data processing
Total business-type depreciation expense
$180,558
142,041
11,169
51,998
12,947
356
$399,069
Note 5
INTERFUND RECEIVABLES. PAY ABLES. AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31,2004 are as follows:
Fund Receivable Payable
General fund $189,640 $
Anoka County CDBG 188,597
Economic Dev. Authority Admin. 1,439,686
Municipal state aid street fund 82,510 169,168
Sheffield TIF 469,293
Capital improvements development 800,000
Water 360,040 1,425,672
Sewer 1,773,391
Storm Sewer 24,273 255,775
Nonmajor funds 792,962 116,577
Insurance internal service fund 41,952
Total $4,064,768 $4,064,768
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
$48,473 of the interfund balances between nonmaj or funds at December 31, 2004 reflect interfund services
provided in 2004 and reimbursed in 2005. All other interfund balances at December 31, 2004 reflect noncapital
lending/borrowing arrangements to cover deficit cash balances at year end, including some to finance the
acquisition of certain real estate held for resale. All amounts are expected to be repaid within one year.
Interfund transfers:
Transfers In
Maior Fllllds
Governmental
Capital Capital Capital Capital Eq Capital
Appreciation Improvements Improvements Replacement Improvements
General Bonds of 1990 Development Gen. Gov ~ FIR
Business-Type
N onmaj or
Nonmajor
Storm Gov't Internal
Water Sewer Sewer Fllllds Service Total
------
Transfers out
Major fllllds
Governmental fllllds
General
Anoka County CDBG
Economic Development Authorit
Municipal State Aid Street Fund
Capital Improvements FIR
$
525,544
$50,000
$262,223 $39,143 $351,366
525,544
222,648 222,648
275,345 29,461 304,806
512,853 542,853
212,050 11,412 45,000 346,484
272,505 8,892 45,000 404,419
45,000 189,912
465,493 8,769 474,262
59,000 45,000 212,062
7,808 50,000 2,647,638
--~~
$275,345 $212,050 $272,505 $465,493 $1,123,066 $303,143 $6,316,494
30,000
Business-type fllllds
Water
Sewer
Refuse
Storm sewer
Liquor
78,022
78,022
144,912
58,062
50,000
Nonmajor governmental fllllds
Internal service fllllds
97,616 1,686,214
806,000
60,500
Total
$456,634 $1,686,214 $1,361,544
$60,500 $100,000
From
To
Amount
$249,582
6,516
6,125
50,000
39,143
27,423
525,544
222,648
29,461
275,345
59,330
50,000
10,863
7,808
530,000
920,889
270,000
765,325
50,342
460,335
30,000
2,176
20,733
20,733
78,022
25,000
74,641
18,851
45,000
78,022
25,000
5,000
40,396
45,000
72,456
72,456
45,000
5,800
332,159
8,892
Purpose
Fund Community Development
Allocate project costs
Allocate project costs
Fund equipment replacernentGeneral
Fund data processing services
Labor allocation
Fund Capital Improvements Development
Fund Community Development
Allocate project costs
Allocate project costs
Labor allocation
Fund data processing services
Labor allocation
Prior year revenue to owning fund
Fund redevelopment costs
Debt service
Fund redevelopment costs
Debt service
Debt service
Debt service
Fund Capital Improvements Development
Allocate project costs
General Fund
General Fund
General Fund
General Fund
General Fund
Community Development
Anoka County CDBG
Economic Development Authority
Municipal State Aid Street Fund
Municipal State Aid Street Fund
Cable Television
Cable Television
Library
CHASE
Parking Ramp Assessments
Tax Increment Bonds
Sheffield Redevelopment
Capital Improvement PVVS
Capital Improvement PIR Fund
Capital Improvement PIR Fund
Capital Improvement PIR Fund
Capital Improvement PIR Fund
Water Utility Capital Equipment Replacement Account
Capital Equipment Replacement-Sewer
Water Utility Operating Account
Water Utility Operating Account
Water Utility Operating Account
Water Utility Operating Account
Water Utility Operating Account
Sewer Utility Operating Account
Sewer Utility Operating Account
Sewer Utility Operating Account
Sewer Utility Operating Account
Sewer Utility Operating Account
Refuse Utility Fund
Refuse Utility Fund
Refuse Utility Fund
Stann Sewer Utility Operating Account
Stann Sewer Utility Operating Account
Stann Sewer Utility Operating Account
Community Development
Capital Improvement
Capital Improvements Parks
Capital Equipment Replacement General Gov't
Data Processing Operating Account
General Fund
Capital Improvements Development
Community Development
Capital Improvement
Capital Improvements PIR Fund
General Fund
Data Processing Operating Account
General Fund
21st Century Grant
Capital Improvements Development
Capital Appreciation Bonds of 1990
Capital Improvements Development
Capital Appreciation Bonds of 1990
GO Improvement Bonds 1999A
GO ImprovementJRevenue Bonds 20mA
Capital Improvements Development
Infrastructure
Sewer Utility Operating Account
Water Utility Operating Account
General Fund
Water Utility Capital Equipment Replacement Account
Water Utility Debt Service Account
Water Utility Construction Account
Data Processing Operating Account
General Fund
Sewer Utility Capital Equipment Replacement Account
Sewer Utility Debt Service Account
Sewer Utility Construction Account
Data Processing Operating Account
General Fund
General Fund
Data Processing Operating Account
Stann Sewer Capital Equipment Replacement Account
Stann Sewer Utility Debt Service Account
Stann Sewer Utility Construction Account
Labor allocation
Fund equipment replacement:Water
Debt service
Allocate project costs
Fund data processing services
Labor allocation
Fund equipment replacementSewer
Debt service
Allocate project costs
Fund data processing services
Labor allocation
Labor allocation
Fund data processing services
Fund equipment replacementSewer
Debt service
Allocate project costs
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Liquor
Liquor
Liquor
Liquor
Liquor
Water Utility Construction Account
Water Utility Construction Account
Sewer Utility Construction Account
Sewer Utility Construction Account
Stann Sewer Utility Construction Account
Storm Sewer Utility Construction Account
Central Garage Operating Account
Central Garage Operating Account
Central Garage Operating Account
Contributed Projects-Recreation
General Fund
DARE Project
Infrastructure
Capital Equipment Replacement General Gov't
Data Processing Operating Account
Capital Improvement
Water Utility Operating Account
Capital Improvement
Sewer Utility Operating Account
Capital Improvement
Stann Sewer Utility Operating Account
Capital Improvements General Gov't Buildings
Central Garage Capital Equipment Replacement Account
Data Processing Operating Account
Capital Improvements Development
Note 6 OPERATING LEASES
A. LEASE EXPENSE
58,062 Labor allocation
9,000 Fund DARE program
50,000 Fund infrastructure replacement
50,000 Fund equipment replacement:General
45,000 Fund data processing services
11,412 Allocate project costs
72,825 Capital assets placed in-service
8,892 Allocate project costs
181,376 Capital assets placed in-service
8,769 Allocate project costs
118,642 Capital assets placed in-service
60,500 General improvements: buildings
4,000 Fund equipment replacement:Central Garage
30,000 Fund data processing services
6,000 Fund Capital Improvements Development
$6,316,494
The City has leased premises for a liquor store (Top Valu I) under a lease agreement that expired on
December 31, 2004. This lease has been renewed through February 29, 2008. This lease is considered for
accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 2004
amounted to $126,238.
The City also leased premises for its Top Valu II liquor store under a five-year lease that originally expired
February 28, 1998, with a five-year renewal option in 1998 and 2003. The City exercised the 2003
renewal option increasing minimum payments to $4,597 per month. The City is also required to pay all
utilities and a pro-rata share of real estate taxes. This lease is considered for accounting purposes to be an
operating lease. Lease expenditures for the year ended December 31, 2004 amounted to $78,817.
The City also leased equipment for its public works activities during 2004 on a month-to-month basis with
no future minimum payments required. This lease is considered for accounting purposes to be an operating
lease. Lease expenditures for the year ended December 31, 2004 amounted to $12,674.
Year Top Value I Top Value II
2005 92,928 55,165
2006 92,928 55,165
2007 92,928 55,165
2008 15,488 9,194
Total $294,272 $174,689
Future minimum rental payments are as follows:
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
B. LEASE REVENUE
The City receives revenue from agreements for the lease of space in Parkview Villa North and for antennas
placed on the water towers and Parkview Villa. For accounting purposes, the leases are considered
operating leases. Lease revenue for the year ended December 31, 2004, totaled $10,969. The terms of each
lease are as follows:
Location
Adjustment
Expiration
Lessee
2004
Ivanhoe Place
40th Ave NE
Sprint Spectrum
T-Mobile USA
$21,320
15,791
Greater of CPI or 5%
Greater of CPI or 4%
08/19/06
12/04/06
Total
$37,111
Note 7
LONG-TERM DEBT
General Obligation Bonds - The City issues General Obligation Bonds to provide funds for the acquisition and
construction of major capital facility additions. General Obligation Bonds have been issued for both governmental
and business-type activities. General Obligation Bonds are direct obligations and are backed by the full faith and
credit of the City.
Advance Crossover Refunding
On December 16, 2004, the City issued the General Obligation Tax Increment Refunding Bonds Series 2004A in
anticipation of refunding the General Obligation Tax Increment Capital Appreciation Bonds of 1990 on the 1990
bonds' early redemption date of September 1, 2005. The proceeds from the 2004A bonds were used to purchase
U.S. government securities placed in an irrevocable trust. Amounts in the trust will be used for debt service on the
2004A bonds until the crossover date of September 1, 2005, when the remaining amount in the trust be used to
refund the 1990 bonds. The terms of this refunding do not defease the City's debt from the 1990 bonds until
September 1, 2005, and therefore both obligations are reported in the governmental activities as of December 31,
2004.
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
General Obligation Bonds currently outstanding are segregated between the amounts to be repaid from
governmental activities and amount to be repaid from business-type activities and are as follows:
Original
Issue
Date
Final
Maturity
Balance
End of Year
Interest
Rate
Issue
General Obligation:
Governmental activities:
Tax increment bonds:
Capital Appreciation Bonds of 1990
Tax Increment Refunding Bonds 2004A
Improvement bonds:
Improvement Bonds 1999A
Improvement Bonds 2003A
$2,399,721 6.90-7.15% 8/23/1990 9/112009 $1,279,704
$1,985,000 2.00-2.75% 12/16/2004 9/112009 1,985,000
860,000 3.45-4.30% 5/111999 2/112010 510,000
1,332,829 1.1 0-4.00% 6/112003 2/112018 1,263,623
Business-type activities:
Revenue bonds:
Utility revenue bonds 1999B
Utility revenue bonds 2003A
1,935,000
1,267,171
3.45-4.30%
1.1 0-4.00%
5/111999
6/112003
2/112010
2/112018
1,285,000
1,201,377
Total general obligation bonds outstanding
$7,524,704
ANNUAL DEBT SERVICE REOUIREMENTS
As of December 31, 2004, the annual requirements to maturity for general obligation bonds are as follows:
Fiscal Year
Ending Governmental Activities Business- Type Activities
December 31 Principal Interest Principal Interest
2005 1,449,035 2,453,625 265,668 84,930
2006 782,273 97,484 287,727 75,967
2007 792,273 80,132 297,727 66,039
2008 804,836 60,692 310,164 55,221
2009 329,836 39,054 3 15,164 43,664
2010 159,836 28,999 325,164 31,295
2011 94,836 24,637 90,164 23,424
2012 97,399 21,440 92,601 20,384
2013 97,399 18,080 92,601 17,189
2014 84,583 14,853 80,417 14,121
2015 84,583 11,766 80,417 11 ,186
2016 84,583 8,594 80,417 8,170
2017 87,146 5,287 82,854 5,027
2018 89,709 1,794 85,292 1,706
Total $5,038,327 $2,866,437 $2,486,377 $458,323
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
At December 31,2004, a total of $1,044,647 is available in Debt Service Funds to service the General Obligation
Tax Increment Bonds and the General Obligation Improvement Bonds. There are a number of limitations and
restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and
restrictions.
The Tax Increment Bonds are payable from the amount of increase in the property taxes on the property in the Tax
Increment District. Any deficiencies in revenues from these sources will be provided by general property taxes.
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2004, is as follows:
Governmental activities:
Tax Increment Bonds
Capital appreciation bonds 1990
Refunding bonds 2004A
Improvement bonds:
Improvement bonds 1999A
Improvement bonds 2003A
Total bonds payable
Compensated absences
Total governmental activity
long-term liabilities
Business-type activities:
Revenue bonds:
Utility revenue bonds 1999B
Utility revenue bonds 2003A
Compensated absences
Total business-type activity
long-term liabilities
Beginning
Balance
Ending
Balance
Due Within
One Year
Additions
Reductions
$1,630,288 $ ($350,584) $1,279,704 $1,279,704
$1,985,000 1,985,000
605,000 (95,000) 510,000 95,000
1,332,828 (69,205) 1,263,623 74,331
3,568,116 1,985,000 (514,789) 5,038,327 1,449,035
604,749 447,970 (440,824) 611,895 18,296
$4,172,865 $2,432,970 ($955,613) $5,650,222 $1,467,331
$1,470,000
1,267,172
71,627
$
($185,000)
(65,795)
(86,717)
$1,285,000
1,201,377
79,514
$195,000
70,668
2,452
94,604
$2,808,799
$94,604
($337,512)
$2,565,891
$268,120
For governmental activities compensated absences are generally liquidated by the Internal Service Fund.
With the exception of the 1990 Tax Increment Bonds, all General Obligation Bonds are serial bonds which require
semiannual payments of principal and/or interest from the date the bonds are issued. The 1990 Tax Increment
Bonds are Capital Appreciation Bonds which began payments of principal and interest in September 2002. At
December 31, 2004, accreted interest of $2,119,289 was included as accrued interest payable in the statement of net
assets.
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note8 CONDUITDEBT
From time to time, the City of Columbia Heights has issued Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The
bonds are secured by the property financed and are payable solely from private-sector entity revenues. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond
issuance. Neither the City of Columbia Heights, the State of Minnesota, nor any political subdivision thereof is
obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 31, 2004, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $18,355,000.
Note 9
FUND EOUITY
The following funds had a fund deficit as of December 31, 2004:
Major Special Revenue Funds:
Anoka County CDBG
($29,636)
Major Capital Project Funds:
Muncipal State Aid Street Fund
Sheffield TIF Redevelopment
(136,821 )
(434,473)
Nonmajor Debt Service Funds:
Multi-Use Redevelopment Plan
(36,096)
Nonmajor Capital Project Funds:
TIF District #2
(2,296)
Total fund deficits
($639,322)
The City will finance these deficits through external or internal sources in future years.
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
At December 31, 2004 the City has reserved and designated portions of its various fund equities through legal
restrictions and City Council authorizations. A summary of such reservations and designations are as follows:
General Fund:
Reserved for prepayments
Designated for working capital
$23,302
3,743,344
Special Revenue Funds:
Reserved for prepayments
Reserved for real estate held for resale
Reserved for program expenditures
Designated for working capital
Designated for maintenance
3,610
1,418,135
814,256
12,585
125,622
Debt Service Funds:
Reserved for debt service
Designated for debt service
2,683,997
1,080,743
Capital Projects Funds:
Reserved for real estate held for resale
Reserved for program expenditures
Designated for capital improvements
325,906
27,801
12,596,486
$22,855,787
Note 10 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Columbia Heights are covered by defined
benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire
Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established
and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by state statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary
for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For all PEPFF and PERF members whose annuity is calculated using Method 1, a full annuity is available
when age plus years of service equal 90. A reduced retirement annuity is also available to eligible
members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various
types of joint and survivor annuity options available which will reduce the monthly normal annuity
amount, because the annuity is payable over joint lives. Members may also leave their contributions in the
fund upon termination of public service in order to qualify for a deferred annuity at retirement age.
Refunds of contributions are available at any time to members who leave public service, but before
retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. The PEPFF
members are required to contribute 6.20% of their annual covered salary. The City of Columbia Heights is
required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF
members, 5.53% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The City's
contributions for the last three years which were equal to the contractually required contributions for each
year as set by state statute are as follows:
Year Ended December 31
PERF
PEPFF
2002
2003
2004
$210,066
216,465
215,137
$185,404
179,290
182,157
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 11 DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE CONSOLIDATION FUND
TERMINATED PLAN - PFCF
Until July 1, 1999, the City of Columbia Heights was a participant in the PERA Police and Fire Consolidation
Fund (PFCF), an agent, multiple-employer defined benefit plan. Effective July 1, 1999 this plan was
terminated and all assets and liabilities were transferred to the Police and Fire Fund (PEPFF), a cost sharing
multiple-employer plan.
Upon termination, a final actuarial valuation determined the unfunded actuarial accrued liability (UAAL) for
each participant. The City of Columbia Heights' remaining obligation to the PFCF is repayment of the UAAL,
which is payable in 10 equal annual installments from 1999 - 2009. Annual payments for the City of Columbia
Heights are $56,706 for the fire and police accounts. During 2003, it was decided that the entire outstanding
amount of $325,675 was to be paid off.
Note 12 DEFINED CONTRIBUTION PLAN
A. FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION
The Columbia Heights Fire Department Relief Association is the administrator of a single-employer
pension plan for the volunteer members of the City of Columbia Heights Fire Department.
Through October 26, 1997, the association operated as a defined benefit plan. Effective October 27, 1997,
the association amended its by-laws and converted to a defined contribution plan. The pension plan was
fully funded at the time of conversion.
Benefits and contribution requirements are established by the association's by-laws and can be amended by
the association's board of directors with approval from the City of Columbia Heights. All provisions are
within limitations established by Minnesota statutes.
Type of Benefit. The exclusive pension provided by the association is a "Defined Contribution Lump Sum
Service Pension" as defined in Minnesota Statutes g424A02, Subdivision 4.
Contributions Required and Contributions Made. No contributions are required from the plan members or
the City of Columbia Heights. The plan is funded through state aid, investment income and discretionary
contributions from the City of Columbia Heights. For 2004 state aid was contributed to the plan.
B. COUNCIL MEMBERS
Certain council members of the City of Columbia Heights are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the Public
Employees Retirement Association of Minnesota (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 353D.03, specifies the employee and employer
contribution rates for those qualified personnel who elect to participate. An eligible elected official who
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
decides to participate contributes 5% of salary which is matched by the elected official's employer. For
ambulance service personnel, employer contributions are determined by the employer, and for salaried
employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a
unit value for each call or period of alert duty. Employees who are paid for their services may elect to
make member contributions in an amount not-to-exceed the employer share. 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% of employer
contributions and f our-tenths of 1 % of the assets in each member's account annually.
Note 13 COMMITMENTS AND CONTINGENCIES
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; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to 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 coverage is retrospectively 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.
Property, casualty, and automobile insurance coverage are 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 commercial
companies for claims in excess of various amounts. The City retains risk for the deductible portions.
These deductibles are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including employee health and
disability insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which
the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the
City attorney, remotely recoverable by plaintiffs.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
C. FEDERAL AND STATE FUNDS
Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment.
Any disallowed claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this
time although the City expects such amounts, if any, to be immaterial.
D. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
E. CONTRACTUAL COMMITMENTS
The City has entered into several contractual commitments that are in process at year end. At December
31,2004, the City's committed obligation for such projects was approximately $2,518,000.
In addition to these contractual commitments, the City has a contract with the City of Minneapolis for the
purchase of the City's water supply. This water supply flows through one master meter located at the City
of Minneapolis reservoir. During the years 2001 through 2004, there were periods of time where the meter
was dysfunctional and it was necessary for Minneapolis to estimate the water flowage. Due to the age of
the meter, there are also some concerns as to its overall accuracy, a result of which could be that the City
was billed for less water than was actually consumed which could result in an outstanding liability to the
City of Minneapolis. At the present time there is not adequate information to determine the full extent of
any potential contingent liability.
Note 14 SUBSEOUENT EVENTS
In 2005, the City was awarded grants of approximately $872,000 from the Minnesota Department of Employment
and Economic Development (DEED) and other sources as a continuation of a multi-year project for the
environmental cleanup of properties located within the City.
83
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 15 PRIOR PERIOD ADJUSTMENT
The following amounts were misstated in the statement of net assets and the statement of activities for the
governmental activities at December 31, 2003. As a result of these adjustments, net assets and change in net assets
were restated as follows:
Total net assets - December 31, 2003, as previously reported
$48,804,1 04
Prior period adjustment- governmental activities:
Capital assets:
Land
Buildings
Accumulated depreciation of buildings
Construction in progress
Unearned revenue
Accrued interest - CAB's of 1990
Net prior period adjustment
177,375
(1,797,935)
2,368,003
(153,231 )
(224,901)
(2,305,632)
(1,936,321)
Total net assets - Januaryl, 2004, as restated
$46,867,783
Change in net assets - 2003, as previously reported
$429,231
Prior period adjustment - governmental activities:
Interest on long-term debt
Capital contribution revenue
233,756
(224,901 )
Change in net assets - 2003, as restated
$438,086
84
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
Note 16 RECENTL Y ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 40 Deposit and Investment Risk Disclosures-an amendment ofGASB Statement No.3 The
provisions of this Statement are effective for financial statements for periods beginning after June 15, 2004.
Statement No. 42 Accounting and Financial Reportingfor Impairment of Capital Assets andfor Insurance
Recoveries. The provisions of this Statement are effective for fiscal periods beginning after December 15, 2004.
Statement No. 43 Financial Reportingfor Post employment Benefit Plans Other Than Pension Plans. The
requirements of this Statement for OPEB plan reporting are effective one year prior to the effective date of the
related Statement # 45 for the employer (single-employer plan) or for the largest participating employer in the plan
(multiple-employer plan).
Statement No. 44 Economic Condition Reporting: The Statistical Section - an amendment to NCGA Statement 1.
The provisions of this Statement are effective for statistical sections prepared for periods beginning after June 15,
2005.
Statement No. 45 Accounting and Financial Reporting by Employers for Post employment Benefits Other Than
Pension. Implementation is required in three phases based on a government's total annual revenues in the first
fiscal year ending after June 15,1999. This Statement is effective for periods beginning after December 15, 2006,
for phase 1 governments (those with total annual revenues of $100 million or more); after December 15, 2007, for
phase 2 governments (those with total annual revenues of $10 million or more but less than $1 00 million); and after
December 15, 2008, for phase 3 governments (those with total annual revenues of less than $10 million). Earlier
implementation is encouraged.
The effect these standards may have on future financial statements is not determinable at this time.
85
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86
REQUIRED SUPPLEMENTARY INFORMATION
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31,2004
With Comparative Totals For The Year Ended December 31, 2003
Statement 10
Page 1 of 2
2004
Variance with
Budgeted Amounts Final Budget 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $4,928,710 $4,341,391 $4,336,802 ($4,589) $3,646,155
Licenses and permits 323,1 00 323,1 00 506,319 183,219 281,480
Intergovernmental:
Market value homestead credit 587,319 587,319 607,324
All other 1,740,721 1,838,400 1,930,028 91,628 2,257,023
Charges for services 497,250 497,250 444,856 (52,394) 407,914
Fines and forfeitures 85,000 85,000 140,282 55,282 140,378
Investment income:
Interest and dividends 164,321 164,321 178,937 14,616 135,976
Change in fair value (7,756) (7,756) (84,760)
Other revenues:
Miscellaneous 4,400 4,400 29,399 24,999 6,265
Proceeds from sale of assets 12,000 12,000 1,626 (10,374) 27,652
Total revenues 7,755,502 7,853,181 8,147,812 294,631 7,425,407
Expenditures:
General government:
Council 201,122 201,122 166,990 34,132 198,725
Manager 392,787 392,787 397,741 ( 4,954) 359,692
Legal 187,690 187,690 176,417 11,273 168,003
Finance and elections 652,777 652,777 603,493 49,284 611,744
Assessing 101,000 101,000 90,400 10,600 92,113
General government buildings 151,393 151,393 120,341 31,052 102,697
Total general government 1,686,769 1,686,769 1,555,382 131,387 1,532,974
Public safety:
Police/animal/civil defense 2,580,347 2,601,994 2,443,256 158,738 2,467,085
Fire 878,907 976,586 1,018,836 ( 42,250) 1,024,854
Total public safety 3,459,254 3,578,580 3,462,092 116,488 3,491,939
Public works:
Engineering 307,483 307,483 305,239 2,244 226,385
Maintenance 847,958 847,958 822,014 25,944 755,067
Sanitation 110,314 110,314 122,451 (12,137) 109,243
Total public works 1,265,755 1,265,755 1,249,704 16,051 1,090,695
Other departments:
Parks and recreation 1,382,114 1,382,114 1,266,844 115,270 1,203,211
Contingencies 100,000 100,000 2,180 97,820 4,883
Total other departments 1,482,114 1,482,114 1,269,024 213,090 1,208,094
Total expenditures 7,893,892 8,013,218 7,536,202 477,016 7,323,702
Revenues over (under) expenditures (138,390) (160,037) 611,610 771,647 101,705
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31,2004
With Comparative Totals For The Year Ended December 31, 2003
Statement 10
Page 2 of2
2004
Budgeted Amounts
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
Original Final
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources
(uses)
$477,116
(338,725)
138,391
Net change in fund balance
$1
Fund balance - beginning
Fund balance - ending
2003
Actual
Amounts
$456,634 $456,634 $ $480,052
(338,725) (351,366) (12,641) (674,131)
117,909 105,268 (12,641 ) (194,079)
($42,128) 716,878 $759,006 (92,374)
3,423,232 3,515,606
$4,140,110 $3,423,232
89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - ANOKA COUNTY CDBG
For The Year Ended December 31,2004
With Comparative Totals For The Year Ended December 31, 2003
Statement 11
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergovernmental $ $ $525,544 $525,544 $50,000
Expenditures:
Other services and charges 1,016 1,016 567 449
Loans and grants 3,752
Total expenditures 1,016 1,016 567 449 3,752
Revenues over (under) expenditures (1,016) (1,016) 524,977 525,993 46,248
Other financing sources (uses):
Transfers out (525,544) 525,544 (50,000)
Net change in fund balance ($1,016) ($1,016) (567) $1,051,537 (3,752)
Fund balance (deficit) - beginning (29,069) (25,317)
Fund balance (deficit) - ending ($29,636) ($29,069)
90
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITYADMINISTRATION
For The Year Ended December 31,2004
With Comparative Totals For The Year Ended December 31, 2003
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $222,648 $222,648 $197,418 ($25,230) $121,895
Intergovernmental 12,889 12,889
Investment income
Interest and dividends 482 482 2,999
Change in fair value (21) (21) (1,437)
Total revenues 222,648 222,648 210,768 (11,880) 123,457
Expenditures:
Personal services 77,659
Supplies 1,030
Other services and charges 750 (750) 36,873
Total expenditures 0 0 750 (750) 115,562
Revenues over (under) expenditures 222,648 222,648 210,018 (12,630) 7,895
Other financing sources (uses):
Transfers out (222,648) (222,648) (222,648) (11,454)
Net change in fund balance $0 $0 (12,630) ($12,630) (3,559)
Fund balance - beginning 90,679 94,238
Fund balance - ending $78,049 $90,679
91
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - NOTE TO RSI
December 31, 2004
Note A LEGAL COMPLIANCE - BUDGETS
The City of Columbia Heights' budget is legally adopted on a basis consistent with generally accepted
accounting principals. The legal level of budgetary control is at the fund level. The following is a listing
of funds whose actual expenditures and other financing uses exceeded budgeted expenditures and other
financing uses (appropriations) for 2004:
Final Over
Budget Actual Budget
Major fund:
Anoka County CDBG $1,016 $526,111 $525,095
Economic Development
Authority Administration 222,648 223,398 750
For 2004, expenditures and other financing uses in the Anoka County CDBG Fund are over budget by
$525,095 due to grant funding transferred out from the Anoka County CDBG Fund to the Capital
Improvements Development Fund for certain redevelopment projects. Neither the grant revenue nor the
transfers-out were included in the 2004 budget, as the grants are approved by Anoka County on a
competitive project-by-project basis and cannot be reasonably estimated at the time the budget is adopted.
For 2004, expenditures and other financing uses in the Economic Development Authority Administration
Fund are over budget by $750 due to administrative costs of a loan program that ended in 2004. These
costs were not were included in the 2004 budget.
92
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
93
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94
NONMAJOR GOVERNMENTAL FUNDS
95
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96
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of special revenue sources that are
legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment
of, interest, principal, and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Projects Funds account for financial resources to be used for the acquisition or
construction of maj or capital facilities (other than those financed by proprietary funds).
97
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2004
Statement 13
Total
Nonmajor
Special Debt Capital Governmental
Assets Revenue Service Project Funds
Cash and investments $1,652,805 $1,007,339 $2,785,900 $5,446,044
Cash and investments with fiscal agent 32,211 32,211
Receivables:
Accounts 37,098 50,250 87,348
Taxes 20,319 17 20,336
Interest 9,785 4,301 31,374 45,460
Loans 3,620 3,620
Due from other governmental units 21,428 21,428
Interfund receivable 46,207 32,825 713,930 792,962
Prepayments 3,610 3,610
Real estate held for resale 21,113 21,113
Total assets $1,795,666 $1,096,995 $3,581,471 $6,474,132
Liabilities and Fund Balance
Liabilities:
Accounts payable $65,651 $5,571 $93 $71,315
Accrued salaries and withholdings payable 28,514 28,514
Contracts payable - retained percentage 1,000 1,000
Due to other governmental units 45,389 45,389
Interfund payable 71,837 30,529 14,211 116,577
Deferred revenue 28,053 16,248 44,301
Deposits 21,083 21,083
Total liabilities 260,527 52,348 15,304 328,179
Fund balance:
Reserved:
Reserved for prepayments 3,610 3,610
Reserved for real estate held for resale 21,113 21,113
Reserved for program expenditures 814,256 814,256
Unreserved:
Designated for working capital 12,585 12,585
Designated for maintenance 125,622 125,622
Designated for debt service 1,080,743 1,080,743
Designated for capital improvements 3,223,770 3,223,770
Undesignated 557,953 (36,096) 342,397 864,254
Total fund balance 1,535,139 1,044,647 3,566,167 6,145,953
Total liabilities and fund balance $1,795,666 $1,096,995 $3,581,471 $6,474,132
98
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
F or The Year Ended December 31, 2004
Statement 14
Total
Nonmajor
Special Debt Capital Governmental
Revenue Service Project Funds
Revenues:
Taxes $433,585 $ - $ - $433,585
Tax increment collections 721,494 201,746 923,240
Intergovernmental 462,286 94,1 09 4,266 560,661
Charges for services 692,573 692,573
Investment income:
Interest and dividends 54,081 20,426 141,377 215,884
Change in fair value (2,343) (885) (6,129) (9,357)
Other revenues 60,948 55,489 116,437
Total revenues 1,701,130 835,144 396,749 2,933,023
Expenditures:
Current:
General government 18,671 18,671
Public safety 38,576 112,821 151,397
Culture and recreation 652,963 7,293 660,256
Community development 965,291 7,383 972,674
Capital outlay:
Public safety 210,321 210,321
Public works 87,597 87,597
Culture and recreation 8,366 8,366
Community development 102,771 102,771
Debt service:
Principal retirement 164,205 164,205
Interest and fiscal charges 68,058 68,058
Issuance costs 544 544
Miscellaneous 14,156 14,156
Developer incentives 10,957 56,909 67,866
Contractual services 2,685 2,685
Total expenditures 1,786,638 257,920 485,009 2,529,567
Revenues over (under) expenditures (85,508) 577,224 (88,260) 403,456
Other financing sources (uses):
Bond proceeds 36,077 36,077
Bond discount (108) (108)
Transfers in 489,038 510,677 123,351 1,123,066
Transfers out (161,424) (920,889) (1,565,325) (2,647,638)
Total other financing sources (uses) 327,614 (374,243) (1,441,974) (1,488,603)
Net change in fund balance 242,1 06 202,981 (1,530,234) (1,085,147)
Fund balance - beginning 1,293,033 841,666 5,096,401 7,231,1 00
Fund balance - ending $1,535,139 $1,044,647 $3,566,167 $6,145,953
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100
NONMAJOR
SPECIAL REVENUE FUNDS
The City of Columbia Heights had the following Special Revenue Funds during the year:
Community Development Fund - established to account for revenues and expenditures
associated with planning, building inspections, and community development projects within the
City.
Cable Television Fund - established to account for revenues and expenditures associated with
cable television franchise.
Library Fund - established in 1993 to account for revenues and expenditures of the library.
D.A.R.E. Program Fund - established to account for revenues and expenditures of DARE (Drug
Awareness) Program.
Special Proiects Fund - established to monitor revenues from special projects and related
expenditures.
C.H.A.S.E. Fund - established to account for revenues and expenditures associated with a State
grant received for community participation in youth enrichment programs.
Twenty-First Century Grant - established to account for revenues and expenditures associated
with a grant received through the school district.
Confiscated Property Fund - established to account for funds from property confiscated by the
Police Department.
Local Law Enforcement Block Grant Fund - established to account for revenues and
expenditures associated with a federal grant received for the purchase of equipment to aid in
crime prevention.
COPS MORE 96 Grant - established to account for revenues and expenditures associated with a
federal grant received for technical service equipment and personnel.
Juvenile Justice Grant - established to account for revenues and expenditures associated with the
removal of graffiti in the City.
Police Grants - Other - established to account for police related grants.
101
Recreation Contributed Proiects Fund - established to monitor contributions for recreational
activities and related expenditures.
Contributed Proiects Fund - established to monitor contributions and related expenditures.
Flex Benefit - established to account for contributions by employees and related expenditures
for flexible benefits.
PoliceIFire Contingency Fund - established to account for future years expenditures related to
police and fire.
Housing and Redevelopment Authority- a separate legal entity from the City. The mayor and
City Council comprise the majority membership of this component unit. Its purpose is to
provide housing in the City.
Parkview Villa North Fund - established to account for revenues and expenditures associated
with low-income federally subsidized senior housing.
Parkview Villa South Fund - established to account for revenues and expenditures associated
with an EDA owned senior housing complex.
Rental Housing Fund - established to account for revenues and expenditures of City-owned
rental properties.
Economic Development Authority - a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is economic
development in the City.
Business Revolving Loan Fund - established to account for revenues and expenditures
associated with business development through a business revolving loan fund.
102
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2004
Statement 15
Page 1 of 2
Community Cable D.AR.E. Special
Development Television Library Program Projects
Fund 201 Fund 225 Fund 240 Fund 270 Fund 226
Assets
Cash and investments $123,825 $ - $44,606 $27,475 $61,164
Receivables:
Accounts 34,618
Interest 820 264
Loans
Due from other governmental units
Interfund receivable 4,762
Prepayments 350 3,260
Real estate held for resale
Total assets $129,757 $34,618 $47,866 $27,475 $61,428
Liabilities and Fund Balance
Liabilities:
Accounts payable $5,132 $ - $7,706 $290 $ -
Accrued salaries and withholdings payable 11,975 15,143
Due to other governmental units 1,296 9,172
Interfund payable 22,322
Deferred revenue 24,433
Deposits
Total liabilities 18,403 22,322 32,021 290 24,433
Fund balance:
Reserved for prepayments 350 3,260
Reserved for real estate held for resale
Reserved for program expenditures
Unreserved:
Designated for working capital 12,585
Designated for maintenance
Undesignated 111,004 12,296 27,185 36,995
Total fund balance 111,354 12,296 15,845 27,185 36,995
Total liabilities and fund balance $129,757 $34,618 $47,866 $27,475 $61,428
103
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2004
Twenty-First Local Law Juvenile
Century Confiscated Enforcement Justice
C.H.AS.E. Grant Property Block Grant Grant
Fund 250 Fund 261 Fund 265 Fund 276 Fund 278
Assets
Cash and investments $53,076 $12,317 $14,337 $3,365 $ -
Receivables:
Accounts
Interest 503 99
Loans
Due from other governmental units 6,551
Interfund receivable
Prepayments
Real estate held for resale
Total assets $53,579 $18,868 $14,337 $3,464 $0
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $3,124 $ - $ - $ -
Accrued salaries and withholdings payable 1,396
Due to other governmental units
Interfund payable
Deferred revenue
Deposits
Total liabilities 0 4,520 0 0 0
Fund balance:
Reserved for prepayments
Reserved for real estate held for resale
Reserved for program expenditures
Unreserved:
Designated for working capital
Designated for maintenance
Undesignated 53,579 14,348 14,337 3,464
Total fund balance 53,579 14,348 14,337 3,464 0
Total liabilities and fund balance $53,579 $18,868 $14,337 $3,464 $0
104
Statement 15
Page 2 of2
Total
Police Recreation Housing and Economic Nonmajor
Grants - Contributed Contributed Flex PoliceIFire Redevelopment Development Special
Other Proj ects Proj ects Benefit Contingency Authority Authority Revenue
Fund 272 Fund 881 Fund 883 Fund 887 Fund 888 Funds Fund 299 Funds
$ - $124,130 $23,622 $46,953 $ - $811,718 $306,217 $1,652,805
2,480 37,098
344 4,772 2,983 9,785
3,620 3,620
1,043 13,834 21,428
1,759 39,686 46,207
3,610
21,113 21,113
$1,043 $124,130 $23,622 $47,297 $0 $834,563 $373,619 $1,795,666
$ - $ - $ - $6,054 $ - $43,345 $ - $65,651
28,514
34,921 45,389
1,043 48,472 71,837
3,620 28,053
21,083 21,083
1,043 0 0 6,054 0 147,821 3,620 260,527
3,610
21,113 21,113
507,830 306,426 814,256
12,585
125,622 125,622
124,130 23,622 41,243 53,290 42,460 557,953
0 124,130 23,622 41,243 0 686,742 369,999 1,535,139
$1,043 $124,130 $23,622 $47,297 $0 $834,563 $373,619 $1,795,666
105
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106
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
F or The Year Ended December 31, 2004
Statement 16
Page 1 of 2
Community
Development Cable D.AR.E. Special
Fund Television Library Program Projects
Fund 201 Fund 225 Fund 240 Fund 270 Fund 226
Revenues:
Taxes $ - $ - $433,585 $ - $ -
Intergovernmental 150,062
Fees/program revenues 135,347 18,684 25,619
Rents
Investment income:
Interest and dividends 3,894 7,612 1,254
Change in fair value (169) (330) (54)
Other revenues:
Miscellaneous
Contributions 50
Total revenues 3,725 135,347 609,613 50 26,819
Expenditures:
Personal services 279,360 1,842 424,814
Supplies 8,325 351 90,322 3,203
Other services and charges 132,037 6,842 71,936 1,631
Capital outlay 8,366
Total expenditures 419,722 9,035 595,438 4,834 0
Revenues over (under) expenditures (415,997) 126,312 14,175 (4,784) 26,819
Other financing sources (uses):
Transfers in 472,230 9,000
Transfers out (27,423) (109,330) (10,863)
Total other financing sources (uses) 444,807 (109,330) (10,863) 9,000 0
Net increase (decrease) fund balance 28,810 16,982 3,312 4,216 26,819
Fund balance (deficit) - beginning 82,544 (4,686) 12,533 22,969 10,176
Fund balance (deficit) - ending $111,354 $12,296 $15,845 $27,185 $36,995
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
F or The Year Ended December 31, 2004
Twenty-First Local Law Juvenile
Century Confiscated Enforcement Justice
C.H.AS.E. Grant Property Block Grant Grant
Fund 250 Fund 261 Fund 265 Fund 276 Fund 278
Revenues:
Taxes $ - $ - $ - $ - $ -
Intergovernmental 57,432 12,616 10,068
Fees/program revenues 12 10,1 00
Rents
Investment income:
Interest and dividends 2,390 471
Change in fair value (103) (20)
Other revenues:
Miscellaneous 6,875
Contributions
Total revenues 2,299 67,532 6,875 13,067 10,068
Expenditures:
Personal services 35,546 10,793
Supplies 4,010 6,455 13,729
Other services and charges 18,500 1,182 540
Capital outlay
Total expenditures 0 58,056 7,637 14,269 10,793
Revenues over (under) expenditures 2,299 9,476 (762) (1,202) (725)
Other financing sources (uses):
Transfers in 7,808
Transfers out (7,808)
Total other financing sources (uses) (7,808) 7,808 0 0 0
Net change in fund balance (5,509) 17,284 (762) (1,202) (725)
Fund balance (deficit) - beginning 59,088 (2,936) 15,099 4,666 725
Fund balance (deficit) - ending $53,579 $14,348 $14,337 $3,464 $0
108
Statement 16
Page 2 of2
Total
Police Recreation Housing and Economic Nonmajor
Grants - Contributed Contributed Flex PoliceIFire Redevelopment Development Special
Other Projects Projects Benefit Contingency Authority Authority Revenue
Fund 272 Fund 881 Fund 883 Fund 887 Fund 888 Funds Fund 299 Funds
$ - $ - $ - $ - $ - $ - $ - $433,585
1,043 231,065 462,286
3,192 192,954
499,619 499,619
1,634 22,660 14,166 54,081
(71) (982) (614) (2,343)
8,771 4,067 19,713
39,247 1,938 41,235
1,043 39,247 1,938 10,334 0 756,429 16,744 1,701,130
30,899 783,254
980 7,816 1,805 34,651 171,647
63 19 1,085 6,746 480,019 720,600
102,771 111,137
1,043 7,835 2,890 6,746 0 648,340 0 1,786,638
0 31,412 (952) 3,588 0 108,089 16,744 (85,508)
489,038
(6,000) (161,424)
0 (6,000) 0 0 0 0 0 327,614
0 25,412 (952) 3,588 0 108,089 16,744 242,106
98,718 24,574 37,655 578,653 353,255 1,293,033
$0 $124,130 $23,622 $41,243 $0 $686,742 $369,999 $1,535,139
109
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Totals For the Year Ended December 31,2003
Statement 17
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Investment income:
Interest and dividends $ - $ - $3,894 $3,894 $1,965
Change in fair value (169) (169) (941)
Other 11
Total revenues 0 0 3,725 3,725 1,035
Expenditures:
Personal services 294,045 294,045 279,360 14,685 196,772
Supplies 15,141 15,141 8,325 6,816 6,291
Other services and charges 135,146 135,146 132,037 3,1 09 74,097
Capital outlay 475 475 475
Total expenditures 444,807 444,807 419,722 25,085 277,160
Revenues over (under) expenditures ( 444,807) (444,807) (415,997) 28,810 (276,125)
Other financing sources (uses):
Transfers in 472,230 472,230 472,230 361,648
Transfers out (27,423) (27,423) (27,423) (16,226)
Total other financing sources (uses) 444,807 444,807 444,807 0 345,422
Net change in fund balance $0 $0 28,810 $28,810 69,297
Fund balance - beginning 82,544 13,247
Fund balance - ending $111,354 $82,544
110
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CABLE TELEVISION FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 18
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Franchise fees $133,000 $133,000 $135,347 $2,347 $135,659
Investment income:
Interest and dividends 1,000 1,000 (1,000)
Other revenues:
Miscellaneous 20
Total revenues 134,000 134,000 135,347 1,347 135,679
Expenditures:
Personal services 6,383 6,383 1,842 4,541 2,303
Supplies 14,160 14,160 351 13,809 15,133
Other services and charges 97,554 97,554 6,842 90,712 16,038
Capital outlay 6,000 6,000 6,000
Total expenditures 124,097 124,097 9,035 115,062 33,474
Revenues over expenditures 9,903 9,903 126,312 116,409 102,205
Other financing sources (uses):
Transfers out (109,330) (109,330) (109,330) (109,330)
Net change in fund balance ($99,427) ($99,427) 16,982 $116,409 (7,125)
Fund balance (deficit) - beginning (4,686) 2,439
Fund balance - ending $12,296 ($4,686)
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LIBRARY FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 19
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $433,585 $433,585 $433,585 $ - $433,585
Intergovernmental 150,062 150,062 150,062 141,850
Charges for services 22,100 22,100 18,684 (3,416) 18,781
Investment income:
Interest and dividends 4,500 4,500 7,612 3,112 8,096
Change in fair value 1,400 1,400 (330) (1,730) (3,879)
Other revenues:
Miscellaneous 250 250 (250)
Total revenues 611,897 611,897 609,613 (2,284) 598,433
Expenditures:
Personal services 434,073 434,073 424,814 9,259 436,410
Supplies 91,625 91,625 90,322 1,303 102,093
Other services and charges 81,710 81,710 71,936 9,774 78,212
Capital outlay 10,000 10,000 8,366 1,634 5,985
Total expenditures 617,408 617,408 595,438 21,970 622,700
Revenues over (under) expenditures (5,511) (5,511) 14,175 19,686 (24,267)
Other financing sources (uses):
Transfers out (13,863) (13,863) (10,863) 3,000 (14,071)
Net change in fund balance ($19,374) ($19,374) 3,312 $22,686 (38,338)
Fund balance - beginning 12,533 50,871
Fund balance - ending $15,845 $12,533
112
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - D.AR.E. PROGRAM
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 20
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (N egative) Amounts
Revenues:
Contributions $ $ $50 $50 $550
Expenditures:
Supplies 3,200 3,200 3,203 (3) 5,151
Other services and charges 2,175 2,175 1,631 544 2,003
Total expenditures 5,375 5,375 4,834 541 7,154
Revenues over (under) expenditures (5,375) (5,375) (4,784) 591 (6,604)
Other financing sources (uses):
Transfers in 9,000 9,000 9,000 9,000
Net change in fund balance $3,625 $3,625 4,216 $591 2,396
Fund balance - beginning 22,969 20,573
Fund balance - ending $27,185 $22,969
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 21
2004 2003
Revenues:
Intergovernmental $ - $25,000
Fees/program revenue 25,619 40,077
Investment income:
Interest and dividends 1,254 348
Change in fair value (54) (167)
Total revenues 26,819 65,258
Expenditures:
Other services and charges 36,963
Capital outlay 22,836
Total expenditures 0 59,799
Revenues over expenditures 26,819 5,459
Fund balance - beginning 10,176 4,717
Fund balance - ending $36,995 $10,176
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - C .H .A .S .E .
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 22
2004 2003
Revenues:
Intergovernmental:
State grant $ - $6,319
Fees/program revenue 12 8,492
Investment income:
Interest and dividends 2,390 2,124
Change in fair value (103) (1,018)
Total revenues 2,299 15,917
Expenditures:
Personal services 2,431
Supplies 131
Other services and charges 3,754
Total expenditures 0 6,316
Revenues over expenditures 2,299 9,601
Other financing sources (uses):
Transfers out (7,808)
Net change in fund balance (5,509) 9,601
Fund balance - beginning 59,088 49,487
Fund balance - ending $53,579 $59,088
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - TWENTY-FIRST CENTURY GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 23
2004 2003
Revenues:
Intergovernmental:
Federal grant $57,432 $35,174
Fees/program revenues 10,1 00
Total revenues 67,532 35,174
Expenditures:
Personal services 35,546 23,955
Supplies 4,010 1,730
Other services and charges 18,500 12,425
Total expenditures 58,056 38,110
Revenues over (under) expenditures 9,476 (2,936)
Other financing sources (uses):
Transfers in 7,808
Net change in fund balance 17,284 (2,936)
Fund balance (deficit) - beginning (2,936)
Fund balance (deficit) - ending $14,348 ($2,936)
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONFISCATED PROPERTY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 24
2004 2003
Revenues:
Other revenue:
Confiscated property $6,875 $4,430
Expenditures:
Supplies 6,455 1,126
Other services and charges 1,182 1,326
Total expenditures 7,637 2,452
Revenues over (under) expenditures (762) 1,978
Fund balance - beginning 15,099 13,121
Fund balance - ending $14,337 $15,099
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LOCAL LAW ENFORCEMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31,2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 25
2004 2003
Revenues:
Intergovernmental
Federal grant $12,616 $17,048
Investment income:
Interest and dividends 471 490
Change in fair value (20) (235)
Total revenues 13,067 17,303
Expenditures:
Personal services 1,243
Supplies 13,729 3,666
Other services and charges 540 15,641
Total expenditures 14,269 20,550
Revenues over (under) expenditures (1,202) (3,247)
Other financing sources (uses):
Transfers in 1,402
Net change in fund balance (1,202) (1,845)
Fund balance - beginning 4,666 6,511
Fund balance - ending $3,464 $4,666
118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - COPS MORE 96
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 26
2004
Revenues
$
Expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance - beginning
$0
Fund balance - ending
119
2003
$
o
o
(314)
o
(314)
314
$0
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - mVENILE mSTICE GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 27
2004 2003
Revenues:
Intergovernmental
Federal grant $10,068 $6,436
Expenditures:
Personal services 10,793 5,805
Supplies 213
Other services and charges 1,311
Total expenditures 10,793 7,329
Revenues over (under) expenditures (725) (893)
Other financing sources (uses):
Transfers in 655
Net change in fund balance (725) (238)
Fund balance - beginning 725 963
Fund balance - ending $0 $725
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE GRANTS-OTHER
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 28
2004 2003
Revenues:
Intergovernmental
Federal grant $1,043 $ -
Expenditures:
Supplies 980
Other services and charges 63
Total expenditures 1,043 0
Revenues over expenditures 0 0
Fund balance - beginning
Fund balance - ending $0 $0
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - RECREA nON CONTRIBUTED PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 29
2004 2003
Revenues:
Contributions $39,247 $29,568
Expenditures:
Supplies 7,816
Other services and charges 19 1,775
Total expenditures 7,835 1,775
Revenues over expenditures 31,412 27,793
Other financing sources (uses):
Transfers out (6,000)
Net change in fund balance 25,412 27,793
Fund balance - beginning 98,718 70,925
Fund balance - ending $124,130 $98,718
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 30
2004 2003
Revenues:
Contributions $1,938 $38,770
Expenditures:
Supplies 1,805 20,182
Other services and charges 1,085 1,063
Capital outlay 21,291
Total expenditures 2,890 42,536
Revenues over (under) expenditures (952) (3,766)
Fund balance - beginning 24,574 28,340
Fund balance - ending $23,622 $24,574
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - FLEX BENEFIT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 31
2004 2003
Revenues:
Investment Income:
Interest and dividends $1,634 $1,662
Change in fair value (71) (796)
Other revenue:
Miscellaneous 8,771 59,740
Total revenues 10,334 60,606
Expenditures:
Other services and charges 6,746 54,693
Revenues over expenditures 3,588 5,913
Fund balance - beginning 37,655 31,742
Fund balance - ending $41,243 $37,655
124
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICEIFIRE CONTINGENCY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Amounts For the Year Ended December 31, 2003
Statement 32
2004
Revenues
Expenditures:
Other services and charges
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Net change in fund balance
Fund balance - beginning
Fund balance - ending
125
$
$0
2003
$
56,706
o
(56,706)
56,706
o
o
$0
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)
COMBINING BALANCE SHEET
December 31, 2004
Statement 33
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 235 Authority
Assets
Cash and investments $590,467 $168,377 $52,874 $811,718
Receivables:
Accounts 1,887 593 2,480
Interest 3,498 858 416 4,772
Due from other governmental units 13,834 13,834
Interfund receivable 1,759 1,759
Total assets $609,686 $171,587 $53,290 $834,563
Liabilities and Fund Balance
Liabilities:
Accounts payable $35,767 $7,578 $ - $43,345
Due to other governmental units 19,054 15,867 34,921
Interfund payable 33,705 14,767 48,472
Deposits 13,330 7,753 21,083
Total liabilities 101,856 45,965 0 147,821
Fund balance:
Reserved for program expenditures 507,830 507,830
Unreserved:
Designated for maintenance 125,622 125,622
Undesignated 53,290 53,290
Total fund balance 507,830 125,622 53,290 686,742
Total liabilities and fund balance $609,686 $171,587 $53,290 $834,563
126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
Statement 34
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 235 Authority
Revenues:
Intergovernmental $231,065 $ - $ - $231,065
Rents 291,657 207,562 400 499,619
Investment income:
Interest and dividends 16,607 4,074 1,979 22,660
Change in fair value (719) (177) (86) (982)
Other revenues:
Miscellaneous 850 3,038 179 4,067
Total revenues 539,460 214,497 2,472 756,429
Expenditures:
Personal services 17,064 13,835 30,899
Supplies 27,077 7,574 34,651
Other services and charges 297,643 179,770 2,606 480,019
Capital outlay 102,771 102,771
Total expenditures 444,555 201,179 2,606 648,340
Net change in fund balance 94,905 13,318 (134) 108,089
Fund balance - beginning 412,925 112,304 53,424 578,653
Fund balance - ending $507,830 $125,622 $53,290 $686,742
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY-
P ARKVIEW VILLA NORTH - SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 35
2004
Variance with
Budget Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergovernmental revenue $90,000 $90,000 $231,065 $141,065 $141,473
Rents 285,000 285,000 291,657 6,657 284,080
Investment income:
Interest and dividends 5,000 5,000 16,607 11,607 21,142
Change in fair value (719) (719) 6,343
Recaptured HUD grant revenue (104,471 )
Other revenues 3,500 3,500 850 (2,650) 3,171
Total revenues 383,500 383,500 539,460 155,960 351,738
Expenditures:
Personal services 23,526 23,526 17,064 6,462 32,055
Supplies 21,738 21,738 27,077 (5,339) 10,179
Other services and charges 315,118 315,118 297,643 17,475 303,694
Capital outlay 102,771 (102,771 ) 55,824
Total expenditures 360,382 360,382 444,555 (84,173) 401,752
Revenues over (under) expenditures 23,118 23,118 94,905 71,787 (50,014)
Other financing sources (uses):
Transfers out 13,518 (11,454)
Net change in fund balance $36,636 $23,118 94,905 $71,787 (61,468)
Fund balance - beginning 412,925 474,393
Fund balance - ending $507,830 $412,925
128
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY -
P ARKVIEW VILLA SOUTH - SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 36
2004
Variance with
Budgeted Amounts Final Budget- 2003
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Rents $190,600 $190,600 $207,562 $16,962 $191,338
Investment income:
Interest and dividends 6,000 6,000 4,074 (1,926) 5,259
Change in fair value (177) (177) 1,578
Other 1,500 1,500 3,038 1,538 3,912
Total revenues 198,1 00 198,1 00 214,497 16,397 202,087
Expenditures:
Personal services 10,083 10,083 13,835 (3,752) 18,345
Supplies 10,822 10,822 7,574 3,248 3,418
Other services and charges 169,608 169,608 179,770 (10,162) 162,020
Total expenditures 190,513 190,513 201,179 (10,666) 183,783
Revenues over expenditures 7,587 7,587 13,318 5,731 18,304
Other financing sources (uses):
Transfers out 6,964 (8,590)
Net change in fund balance $14,551 $7,587 13,318 $5,731 9,714
Fund balance - beginning 112,304 102,590
Fund balance - ending $125,622 $112,304
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY
RENTAL HOUSING
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Actual Amounts For the Year Ended December 31, 2003
Statement 37
2004 2003
Revenues:
Rents $400 $18,309
Investment income:
Interest and dividends 1,979 1,888
Change in fair value (86) (905)
Other revenue:
Miscellaneous 179 1,218
Total revenues 2,472 20,510
Expenditures:
Supplies 189
Other services and charges 2,606 164,698
Total expenditures 2,606 164,887
Revenues over (under) expenditures (134) (144,377)
Other financing sources (uses):
Sale of land 150,421
Transfers in 8,323
Total other financing sources (uses) 0 158,744
Net change in fund balance (134) 14,367
Fund balance - beginning 53,424 39,057
Fund balance - ending $53,290 $53,424
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT)
BUSINESS REVOLVING LOAN FUND - BALANCE SHEET
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 38
2004 2003
Assets
Cash and investments $306,217 $327,260
Receivables:
Taxes 4,163
Interest 2,983 2,662
Loans 3,620 6,545
Interfund receivable 39,686
Real estate held for resale 21,113 21,113
Total assets $373,619 $361,743
Liabilities and Fund Balance
Liabilities:
Deferred revenue $3,620 $8,488
Fund balance:
Reserved for real estate held for resale 21,113 21,113
Reserved for program expenditures 306,426 306,426
Unreserved:
Undesignated 42,460 25,716
Total fund balance 369,999 353,255
Total liabilities and fund balance $373,619 $361,743
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY
BUSINESS REVOLVING LOAN FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
F or The Year Ended December 31, 2004
With Comparative Totals For the Year Ended December 31,2003
Statement 39
2004 2003
Revenues:
Taxes $ $97,076
Intergovernmental 12,460
Fees/program revenues 3,192 20,781
Investment income:
Interest and dividends 14,166 12,205
Change in fair value (614) (5,847)
Total revenues 16,744 136,675
Expenditures
Revenues over expenditures 16,744 136,675
Other financing sources (uses):
Transfers out (111,648)
Net change in fund balance 16,744 25,027
Fund balance - beginning 353,255 328,228
Fund balance - ending $369,999 $353,255
132
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following Debt Service Funds during the year:
Tax Increment Bond Funds - are separate funds used to account for each separate Tax Increment
Bond Issue revenues and expenditures. These bonds are repaid primarily from tax increments.
Special Assessment Improvement Bonds - are repaid primarily from special assessments.
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2004
Statement 40
GO. Tax GO. Total
Tax Multi-Use Increment GO. Improvement/ Nonmajor
Increment Redevelopment Refunding Improvement Revenue Debt
Bonds Plan Bonds 2004A 1999A 2003A Service
Fund 376 Fund 385 Fund 350 Fund 387 Fund 388 Funds
Assets
Cash and investments $81,260 $ $3,221 $580,737 $342,121 $1,007,339
Cash and investments with fiscal agent 32,211 32,211
Receivables:
Taxes:
Unremitted 4,067 4 4,071
Delinquent 16,248 16,248
Interest 91 3 4,207 4,301
Interfund receivable 32,825 32,825
Total assets $134,491 $4 $35,435 $584,944 $342,121 $1,096,995
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $5,571 $ $ $ $5,571
Interfund payable 30,529 30,529
Deferred revenue:
Property taxes - delinquent 16,248 16,248
Total liabilities 16,248 36,1 00 0 0 0 52,348
Fund balance:
Unreserved:
Designated for debt service 118,243 35,435 584,944 342,121 1,080,743
Undesignated (36,096) (36,096)
Total fund balance 118,243 (36,096) 35,435 584,944 342,121 1,044,647
Total liabilities and fund balance $134,491 $4 $35,435 $584,944 $342,121 $1,096,995
134
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
F or The Year Ended December 31, 2004
Statement 41
GO. Tax GO. Total
Tax Multi-Use Increment GO. Improvement/ Nonmajor
Increment Redevelopment Refunding Improvement Revenue Debt
Bonds Plan Bonds 2004A 1999A 2003A Service
Fund 376 Fund 385 Fund 350 Fund 387 Fund 388 Funds
Revenues:
Tax increment collections $700,059 $21,435 $ $ $ $721,494
Intergovernmental 93,752 357 94,109
Investment income:
Interest and dividends 435 10 19,981 20,426
Change in fair value (19) (866) (885)
Total revenues 794,227 21,792 10 19,115 0 835,144
Expenditures:
Debt service:
Principal retirement 95,000 69,205 164,205
Interest and fiscal charges 23,109 44,949 68,058
Issuance costs 544 544
Miscellaneous 13,647 509 14,156
Developer incentives 10,957 10,957
Total expenditures 13,647 11,466 544 118,109 114,154 257,920
Revenues over (under) expenditures 780,580 10,326 (534) (98,994) (114,154) 577,224
Other financing sources (uses):
Bond proceeds 36,077 36,077
Bond discount (108) (108)
Transfers in 50,342 460,335 510,677
Transfers out (920,889) (920,889)
Total other financing sources (uses) (920,889) 0 35,969 50,342 460,335 (374,243)
Net change in fund balance (140,309) 10,326 35,435 (48,652) 346,181 202,981
Fund balance (deficit) - beginning 258,552 ( 46,422) 633,596 ( 4,060) 841,666
Fund balance (deficit) - ending $118,243 ($36,096) $35,435 $584,944 $342,121 $1,044,647
135
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136
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Capital Project Funds during the year:
Capital Improvements Funds 390 & 401 - used to account for Capital Project Funds whereby
funding is provided by a number of internal and external sources.
Downtown Parking Maintenance Funds 290 & 405 - used for maintenance of the West Side
Parking.
Capital Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City
identified as Sheffield Neighborhood.
Capital Improvement Parks Fund 412 - used to account for improvements in City parks.
Capital Improvement PVVS Fund 414 - used to account for improvements to Parkview Villa
South building.
Infrastructure Replacement Fund 430 - used to fund replacement of City infrastructure.
Capital Equipment Fire Fund 439 - used to fund replacement of fire capital assets.
Capital Equipment Cable TV Fund 440 - used to fund replacement of cable capital assets.
Capital Building Library Fund 450 - used to fund replacement of the library building.
TIF District #2 Funds 386 & 407 - used to account for revenues and expenditures located within
the Tax Increment Financing District #2.
TIF Medtronics Fund 378 - used to account for revenues and expenditures located within the
Medtronics Tax Increment Financing District.
TIF Scattered Site Funds 370 & 379 - used to account for revenues and expenditures located
within the Scatter Site Tax Increment Financing District.
TIF Transition Block Fund 389 - used to account for revenues and expenditures located within
the Transition Block Tax Increment Financing District.
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2004
Downtown
Parking Capital Capital Capital
Capital Maintenance Sheffield Improvement Improvement
Improvement Funds 290 Redevelopment Parks PVVS
Funds 390 & 401 &405 Fund 410 Fund 412 Fund 414
Assets
Cash and investments $129,915 $227,572 $213,133 $955,595 $19,922
Receivables:
Accounts 50,250
Taxes
Interest 1,116 5,560 7,333 5,622
Due from other governmental units
Interfund receivable 600,000
Total assets $731,031 $233,132 $213,133 $1,013,178 $25,544
Liabilities and Fund Balance
Liabilities:
Accounts payable $ $ $ $ $
Contracts payable - retained percentage 1,000
Interfund payable 4,949
Total liabilities 1,000 4,949 0 0 0
Fund balance:
Unreserved:
Designated for capital improvement 730,031 228,183 213,133 1,013,178 25,544
Undesignated
Total fund balance 730,031 228,183 213,133 1,013,178 25,544
Total liabilities and fund balance $731,031 $233,132 $213,133 $1,013,178 $25,544
138
Statement 42
TIF Total
Capital Capital Capital TIF Scattered TIF N onmaj or
Infrastructure Equipment Equipment Building District #2 TIF Site Transition Capital
Replacement Fire Cable TV Library Funds 386 Medtronics Funds 370 Block Proj ect
Fund 430 Fund 439 Fund 440 Fund 450 &407 Fund 378 & 379 Fund 389 Funds
$51,463 $347,379 $292,702 $198,397 $ $275,562 $17,033 $57,227 $2,785,900
50,250
17 17
1,527 4,245 2,455 1,603 1,721 48 144 31,374
91,608 22,322 713,930
$144,598 $351,624 $317,479 $200,000 $0 $277 ,283 $17,098 $57,371 $3,581,471
$
$
$
$
$
$47
$
$46
$93
1,000
14,211
15,304
o
o
o
o
2,296
2,296
47
6,966
6,966
46
144,598
351,624
317,479
200,000
(2,296)
(2,296)
277,236
277,236
10,132
10,132
57,325
57,325
3,223,770
342,397
3,566,167
144,598
351,624
317,479
200,000
$144,598
$351,624
$317,479
$200,000
$0
$277 ,283
$17,098
$57,371
$3,581,471
139
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140
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
F or The Year Ended December 31, 2004
Statement 43
Page 1 of 2
Downtown Capital Capital
Capital Parking Sheffield Improvement
Improvement Maintenance Redevelopment Parks
Funds 390 & 401 Funds 290 & 405 Fund 410 Fund 412
Revenues:
Tax increment collections $ $ $ $
Intergovernmental
Investment income:
Interest and dividends 5,298 26,403 34,826
Change in fair value (230) (1,145) (1,510)
Other revenues:
Park dedication fees 50,250
Miscellaneous 4,975
Total revenues 5,068 25,258 0 88,541
Expenditures:
Repair and maintenance 7,383 7,293
Capital outlay 373
Developer incentives
Contractual services
Total expenditures 373 7,383 0 7,293
Revenue over (under) expenditures 4,695 17,875 0 81,248
Other financing sources (uses):
Transfers in 65,050 6,125
Transfers out (530,000) (270,000)
Total other financing sources (uses) 65,050 (530,000) (270,000) 6,125
Net change in fund balance 69,745 ( 512,125) (270,000) 87,373
Fund balance (deficit) - beginning 660,286 740,308 483,133 925,805
Fund balance (deficit) - ending $730,031 $228,183 $213,133 $1,013,178
141
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
F or The Year Ended December 31, 2004
Capital Capital Capital
Improvement Infrastructure Equipment Equipment
PVVS Replacement Fire Cable TV
Fund 414 Fund 430 Fund 439 Fund 440
Revenues:
Tax increment collections $ $ $ $
Intergovernmental
Investment income:
Interest and dividends 26,701 7,255 20,158 11,658
Change in fair value (1,157) (315) (874) (505)
Other revenues:
Park dedication fees
Miscellaneous
Total revenues 25,544 6,940 19,284 11,153
Expenditures:
Repair and maintenance 112,821
Capital outlay 87,224 210,321
Developer incentives
Contractual services
Total expenditures 0 87,224 323,142 0
Revenue over (under) expenditures 25,544 (80,284) (303,858) 11,153
Other financing sources (uses):
Transfers in 52,176
Transfers out (765,325)
Total other financing sources (uses) (765,325) 52,176 0 0
Net change in fund balance (739,781) (28,1 08) (303,858) 11,153
Fund balance (deficit) - beginning 765,325 172,706 655,482 306,326
Fund balance (deficit) - ending $25,544 $144,598 $351,624 $317,479
142
Statement 43
Page 2 of2
Capital
Building TIF TIF TIF TIF Total Nonmajor
Library District #2 Medtronic Scattered Site Transition Block Capital
Fund 450 Funds 386 & 407 Fund 378 Funds 370 & 379 Fund 389 Project Funds
$ $ $115,798 $21,815 $64,133 $201,746
4,266 4,266
8,171 224 683 141,377
(354) (10) (29) (6,129)
50,250
264 5,239
0 0 123,615 26,295 65,051 396,749
127,497
297,918
46,319 10,590 56,909
53 437 1,045 1,150 2,685
0 53 46,756 1,045 11,740 485,009
0 (53) 76,859 25,250 53,311 (88,260)
123,351
(1,565,325)
0 0 0 0 0 (1,441,974)
0 (53) 76,859 25,250 53,311 (1,530,234)
200,000 (2,243) 200,377 (15,118) 4,014 5,096,401
$200,000 ($2,296) $277,236 $10,132 $57,325 $3,566,167
143
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144
ENTERPRISE FUNDS
The authority for these types of funds is derived from Section 69(b) of the City Charter which
allows for Utility or other Public Service Enterprise Funds.
The Enterprise Funds are members of the Proprietary Fund Type category, and, as such, are
accounted for on the accrual basis of accounting. Revenues in the Enterprise Funds are
recognized when they are earned and expenses are recognized when they are incurred.
The Enterprise Funds are used to account for operations that are either financed and operated in a
manner similar to private business enterprises or where the governing body has decided that
periodic determination of revenues earned, expenses incurred, and/or net income is appropriate
for capital maintenance, public policy, management control, accountability, or other purposes.
Water Utility Fund - used to account for revenues and expenses associated with services to area
residents.
Sewer Utility Fund - used to account for revenues and expenses associated with sewer disposal
within the City.
Refuse Utility Fund - used to account for revenues and expenses associated with organized
collection of refuse and recycling in the City.
Storm Sewer Utility Fund - used to account for revenues and expenses associated with storm
water disposal.
Liquor Fund - used to account for revenues and expenses associated with the operation of three
off-sale liquor stores.
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31,2003
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2004 2003
Assets
Current assets:
Cash and cash equivalents $210,526 $10,129 $ - $251,077 $471,732 $5,807
Receivables:
Accounts (net of allowance for
uncollectibles) 374,376 374,376 351,176
Interest 2,858 1,536 4,394 5,193
Interfund receivable 360,040 360,040 668,026
Inventory - at cost 3,940 3,940 3,299
Total current assets 588,842 373,027 0 252,613 1,214,482 1,033,501
Noncurrent assets:
Capital assets:
Land 45,223 45,223 45,223
Buildings 447,305 447,305 447,305
Improvements other than buildings 6,315,282 6,315,282 6,315,282
Office furniture and fixtures 25,259 25,259 25,259
Machinery and equipment 300,529 300,529 206,972
Construction in process 198,500 198,500
Total capital assets 7,133,598 0 198,500 0 7,332,098 7,040,041
Less: Accumulated depreciation (2,650,117) (2,650,117) (2,469,559)
Total capital assets (net of
accumulated depreciation) 4,483,481 0 198,500 0 4,681,981 4,570,482
Total noncurrent assets 4,483,481 0 198,500 0 4,681,981 4,570,482
Total assets 5,072,323 373,027 198,500 252,613 5,896,463 5,603,983
Liabilities
Current liabilities:
Accounts payable 7,544 7,544 6,462
Accrued salaries and withholdings payable 3,189 3,189 4,669
Due to other governmental units 73,228 73,228 95,801
Interfund payable 706,582 719,090 1,425,672 973,885
Accrued interest payable 23,592 23,592 30,242
Deposits 3,744
Compensated absences payable - current 430 430 326
Bonds payable - current 158,258 158,258 149,145
Total current liabilities 790,973 0 719,090 181,850 1,691,913 1,264,274
Noncurrent liabilities:
Compensated absences payable - noncurrent 13,943 13,943 13,071
Bonds payable - noncurrent 1,471,587 1,471,587 1,629,845
Total noncurrent liabilities 13,943 0 0 1,471,587 1,485,530 1,642,916
Total liabilities 804,916 0 719,090 1,653,437 3,177,443 2,907,190
Net Assets
Invested in capital assets, net of related debt 4,483,481 198,500 (1,629,845) 3,052,136 2,791,492
Restricted for debt service 229,021 229,021 285,725
Unrestricted (216,074) 373,027 (719,090) (562,137) (380,424)
Total net assets $4,267,407 $373,027 ($520,590) ($1,400,824) $2,719,020 $2,696,793
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31, 2003
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2004 2003
Operating revenues:
Charges for services:
Customer services $40,884 $ - $ - $ - $40,884 $38,923
Penalties 33,670 33,670 32,663
Charges for sales:
Water 1,614,143 1,614,143 1,398,233
Meter 3,949 68,207 72,156 78,092
Total operating revenues 1,692,646 0 0 68,207 1,760,853 1,547,911
Operating expenses:
Cost of sales and services 862,514 862,514 1,180,726
Distribution 501,210 1,479 10,905 513,594 472,396
Administration 20,406 20,406 10,265
Depreciation 180,558 180,558 177,604
Total operating expenses 1,564,688 1,479 10,905 0 1,577,072 1,840,991
Net income (loss) from operations 127,958 (1,479) (10,905) 68,207 183,781 (293,080)
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 13,576 7,296 20,872 23,805
Change in fair value (589) (316) (905) (11,405)
Miscellaneous revenues 10,300 10,300 594
Interest and fiscal charges (57,387) (57,387) (48,625)
Miscellaneous expenses (12,391 )
Total nonoperating revenues (expenses) 10,300 12,987 0 (50,407) (27,120) (48,022)
Net income (loss) before transfers 138,258 11,508 (10,905) 17,800 156,661 (341,102)
Transfers in 93,558 25,000 18,851 74,641 212,050 1,863,159
Transfers out (241,514) (20,733) (84,237) (346,484) (1,986,073)
Total transfers (147,956) 4,267 (65,386) 74,641 (134,434) (122,914)
Change in net assets (9,698) 15,775 (76,291 ) 92,441 22,227 (464,016)
Total net assets - beginning 4,277,105 357,252 (444,299) (1,493,265) 2,696,793 3,160,809
Total net assets - ending $4,267,407 $373,027 ($520,590) ($1,400,824) $2,719,020 $2,696,793
147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31, 2003
Statement 46
2004 2003
$1,733,909 $1,481,678
(1,164,907) (1,593,129)
(254,243) (227,285)
10,300 594
(12,391)
325,059 (350,533)
212,050 1,863,159
(346,484) (1,986,073)
307,986 10,649
451,787 295,210
625,339 182,945
(292,057) (764,570)
1,011,008
(149,145) (94,038)
(64,037) (32,803)
(505,239) 119,597
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Interfund receivable repaid by other funds
Interfund payable advanced from other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds from sale of bonds
Principal payments - bonds
Interest and fiscal charges
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
21,671
(905)
20,766
465,925
5,807
$471,732
25,280
(11,405)
13,875
(34,116)
39,923
$5,807
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in inventory, at cost
Increase (decrease) in accounts payable
Increase (decrease) in accrued salaries and withholdings payable
Increase (decrease) in due to other governmental units
Increase (decrease) in deposits
Increase (decrease) in compensated absences payable
Total adj ustments
Net cash flows from operating activities
$183,781 ($293,080)
10,300 594
(12,391)
180,558 177,604
(23,200) (67,393)
1,160
(641 ) (435)
1,082 2,760
(1,480) 1,625
(22,573) (161,198)
(3,744)
976 221
141,278 (57,453)
$325,059 ($350,533)
148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 47
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31,2003
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2004 2003
Assets
Current assets:
Cash and cash equivalents $229,439 $487,060 $140,701 $5,236 $862,436 $2,003,712
Receivables:
Accounts (net of allowance for
uncollectibles) 236,238 236,238 245,266
Interest 11,029 3,768 3,827 23 18,647 24,327
Due from other governmental units 5,169
Interfund receivables 1,065,632 707,759 1,773,391 958,414
Prepayments 64,198 64,198 57,269
Total current assets 1,606,536 490,828 852,287 5,259 2,954,910 3,294,157
Noncurrent assets:
Due from other governmental units 155,785 155,785 178,368
Capital assets:
Land 36,586 36,586 36,586
Buildings 45,201 45,201 45,201
Improvements other than buildings 4,685,437 4,685,437 4,576,886
Office furniture and fixtures 40,964 40,964 40,964
Machinery and equipment 520,460 520,460 418,383
Construction in process 96,210 96,210 405
Total capital assets 5,328,648 0 96,210 0 5,424,858 5,118,425
Less: Accumulated depreciation (2,958,378) (2,958,378) (2,816,337)
Total capital assets (net of
accumulated depreciation) 2,370,270 96,210 2,466,480 2,302,088
Total noncurrent assets 2,526,055 0 96,210 0 2,622,265 2,480,456
Total assets 4,132,591 490,828 948,497 5,259 5,577,175 5,774,613
Liabilities
Current liabilities:
Accounts payable 3,999 2,976 6,975 12,498
Accrued salaries and withholdings payable 16,645 2,927 19,572 2,179
Accrued interest payable 436 436 493
Compensated absences payable - current 430 430 326
Bonds payable - current 3,865 3,865 3,667
Total current liabilities 21,074 0 5,903 4,301 31,278 19,163
Noncurrent liabilities:
Compensated absences payable - noncurrent 13,943 13,943 13,071
Bonds payable - noncurrent 21,605 21,605 25,469
Total noncurrent liabilities 13,943 0 0 21,605 35,548 38,540
Total liabilities 35,017 5,903 25,906 66,826 57,703
Net Assets
Invested in capital assets, net of related debt 2,370,270 96,210 (25,470) 2,441,010 2,272,546
Restricted for debt service 4,823 4,823 4,450
Unrestricted 1,727,304 490,828 846,384 3,064,516 3,439,914
Total net assets $4,097,574 $490,828 $942,594 ($20,647) $5,510,349 $5,716,910
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 48
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2004 2003
Operating revenues:
Charges for sales and services:
Sewer service charges $1,011,419 $ - $ - $ - $1,011,419 $1,201,655
Operating expenses:
Cost of sales and services 704,853 704,853 723,970
Collection 305,352 31,504 336,856 345,899
Administration 17,322 17,322 10,813
Depreciation 142,041 142,041 138,043
Total operating expenses 1,169,568 0 31,504 0 1,201,072 1,218,725
Net income (loss) from operations (158,149) 0 (31,504) 0 (189,653) (17,070)
Nonoperating revenues (expenses)
Investment income:
Interest and dividends 52,374 17,897 42,666 111 113,048 111,527
Change in fair value (2,270) (776) (788) (5) (3,839) (53,435)
Intergovernmental 1,865
Miscellaneous revenues 8,113 8,113 39,227
Interest and fiscal charges (1,067) (1,067) (1,203)
Miscellaneous expenses (1,249) (1,249)
Total nonoperating
revenues (expenses) 58,217 15,872 41,878 (961 ) 115,006 97,981
Net income (loss) before transfers (99,932) 15,872 10,374 (961 ) (74,647) 80,911
Transfers in 202,1 09 25,000 40,396 5,000 272,505 460,629
Transfers out (193,418) (20,733) (190,268) ( 404,419) (583,543)
Total transfers 8,691 4,267 (149,872) 5,000 (131,914) (122,914)
Change in net assets (91,241) 20,139 (139,498) 4,039 (206,561) (42,003)
Net assets - beginning 4,188,815 470,689 1,082,092 (24,686) 5,716,910 5,758,913
Net assets - ending $4,097,574 $490,828 $942,594 ($20,647) $5,510,349 $5,716,910
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 49
2004 2003
$1,048,199 $1,236,883
(841,864) (938,999)
(211,250) (191,551)
8,113 41,092
(1,249)
1,949 147,425
272,505 460,629
(404,419) (583,543)
(814,977) (335,010)
(946,891) (457,924)
(306,433) (424,023)
(3,666) (3,568)
(1,124) (1,257)
(311,223) (428,848)
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Interfund receivable advanced to other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Principal payments - bonds
Interest and fiscal charges
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
118,728
(3,839)
114,889
(1,141,276)
2,003,712
$862,436
116,589
(53,435)
63,154
(676,193)
2,679,905
$2,003,712
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued salaries and withholdings payable
Increase ( decrease) compensated absences payable
Total adjustments
Net cash flows from operating activities
($189,653) ($17,070)
8,113 41,092
(1,249)
142,041 138,043
9,028 18,682
27,752 16,546
(6,929) (57,269)
(5,523) 7,735
17,393 (555)
976 221
191,602 164,495
$1,949 $147,425
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 50
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for uncollectibles)
Interest
Total current assets
Noncurrent assets:
Capital assets:
Buildings
Improvements other than buildings
Machinery and equipment
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
2004
2003
$187,1 01
$357,894
286,170
2,589
475,860
278,412
4,060
640,366
6,000 6,000
11,566 11,566
97,124 97,124
114,690 114,690
(63,299) (52,130)
51,391 62,560
51,391 62,560
527,251 702,926
90,471
104,454
51,391
385,389
62,560
535,912
$436,780
$598,472
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 51
2004 2003
Operating revenues:
Refuse service charges $1,255,011 $1,246,660
Operating expenses:
Cost of sales and services 1,244,428 1,256,930
Administration 14,081 15,842
Recycling 15,514 13,504
Hazardous waste 4,119
Depreciation 11 ,169 11,169
Total operating expenses 1,285,192 1,301,564
Net income (loss) from operations (30,181 ) (54,904)
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 12,299 18,613
Change in fair value (533) (8,918)
Intergovernmental 46,635 53,411
Miscellaneous revenues 1,686
Total nonoperating revenues (expenses) 58,401 64,792
Net income before transfers 28,220 9,888
Transfers out (189,912) (189,804)
Change in net assets (161,692) (179,916)
Net assets - beginning 598,472 778,388
Net assets - ending $436,780 $598,472
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 52
2004 2003
$1,247,253 $1,269,005
(1,287,348) (1,393,273)
(658) (769)
46,635 55,097
5,882 (69,940)
(189,912) (189,804)
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers out
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
13,770 21,325
(533) (8,918)
13,237 12,407
(170,793) (247,337)
357,894 605,231
$187,101 $357,894
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
Increase ( decrease) in accounts payable
Total adjustments
($30,181) ($54,904)
46,635 55,097
11,169 11,169
(7,758) 1,963
20,382
(13,983) (103,647)
36,063 (15,036)
$5,882 ($69,940)
Net cash flows from operating activities
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 53
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31,2003
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2004 2003
Assets
Current assets:
Cash and cash equivalents $376 $607 $1,803 $116,680 $119,466 $96,239
Receivables:
Accounts (net of allowance for
uncollectibles) 61,678 61,678 49,036
Interest 171 510 681 2,086
Due from other governmental units 113,407 113,407
Interfund receivable 24,273 24,273
Total current assets 62,054 25,051 115,720 116,680 319,505 147,361
Noncurrent assets:
Capital assets:
Land 254,724 254,724 254,724
Improvements other than buildings 1,148,708 1,148,708 1,030,067
Construction in process 100,538 100,538 123,174
Total capital assets 1,403,432 0 100,538 0 1,503,970 1,407,965
Less: Accumulated depreciation (156,861) (156,861) (104,863)
Total capital assets (net of
accumulated depreciation) 1,246,571 100,538 1,347,109 1,303,102
Total noncurrent assets 1,246,571 0 100,538 0 1,347,109 1,303,102
Total assets 1,308,625 25,051 216,258 116,680 1,666,614 1,450,463
Liabilities
Current liabilities:
Accounts payable 691 1,500 2,191 2
Accrued salaries and withholdings payable 650 650 150
Due to other governmental units 16 16
Interfund payable 220,737 35,038 255,775 162,693
Accrued interest payable 13,135 13,135 15,755
Bonds payable - current 103,545 103,545 97,983
Total current liabilities 222,094 0 36,538 116,680 375,312 276,583
Noncurrent liabilities:
Bonds payable - noncurrent 727,517 727,517 831,062
Total liabilities 222,094 0 36,538 844,197 1,102,829 1,107,645
Net Assets
Invested in capital assets, net of related debt 1,246,571 100,538 (831,062) 516,047 250,882
Restricted for debt service 103,545 103,545
Unrestricted (160,040) 25,051 79,182 (55,807) 91,936
Total net assets $1,086,531 $25,051 $179,720 ($727,517) $563,785 $342,818
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 54
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2004 2003
Operating revenues:
Charges for sales and services:
Storm sewer service charges $284,223 $ - $ - $ - $284,223 $184,712
Operating expenses:
Collection 62,013 15,033 77,046 120,618
Administration 9,892 9,892 1,330
Depreciation 51,998 51,998 51,503
Total operating expenses 123,903 0 15,033 0 138,936 173,451
Net income from operations 160,320 0 (15,033) 0 145,287 11,261
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 813 2,417 3,230 9,564
Change in fair value (35) (105) (140) (4,583)
Intergovernmental 113,407 113,407 52,499
Interest and fiscal charges (32,048) (32,048) (32,066)
Miscellaneous expenses (3,140)
Total nonoperating
revenues (expenses) 0 778 115,719 (32,048) 84,449 22,274
Net income (loss) before transfers 160,320 778 100,686 (32,048) 229,736 33,535
Transfers in 118,642 5,800 8,892 332,159 465,493 637,939
Transfers out (346,851 ) (127,411) (474,262) (637,939)
Total transfers (228,209) 5,800 (118,519) 332,159 (8,769) 0
Change in net assets (67,889) 6,578 (17,833) 300,111 220,967 33,535
Net assets - beginning 1,154,420 18,473 197,553 (1,027,628) 342,818 309,283
Net assets - ending $1,086,531 $25,051 $179,720 ($727,517) $563,785 $342,818
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 55
2004 2003
$271,581 $186,868
(76,889) (73,790)
(7,344) ( 48,244)
(3,140)
187,348 61,694
465,493 637,939
(474,262) (637,939)
93,082 66,289
(24,273)
60,040 66,289
(96,005) (341,312)
52,499
256,163
(97,983) (82,394)
(34,668) (28,946)
(228,656) (143,990)
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Interfund payable advanced from other funds
Interfund receivable advanced to other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds of capital grants and contributions
Proceeds from sale of bonds
Principal payments - bonds
Interest and fiscal charges
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
4,635 9,153
(140) (4,583)
4,495 4,570
23,227 (11,437)
96,239 107,676
$119,466 $96,239
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents- January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income
Adjustments to reconcile operating income to net
cash flows from operating activities:
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued salaries and withholdings payable
Increase (decrease) in due to other governmental units
Total adjustments
Net cash flows from operating activities
$145,285
$11,261
51,998
(3,140)
51,503
(12,642)
(12,799)
14,955
(167)
81
2,189
500
16
42,061
$187,346
50,433
$61,694
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 56
Capital
Equipment
Operating Replacement Totals
Account Account 2004 2003
Assets
Current assets:
Cash and cash equivalents $2,053,045 $28,473 $2,081,518 $2,046,599
Receivables:
Accounts (net of allowance for
uncollectibles) 1,678 1,678 577
Interest 15,186 222 15,408 17,137
Due from other governmental units 1,012 1,012 1,865
Prepayments 5,534 5,534 5,441
Inventory - at cost 1,640,919 1,640,919 1,381,601
Total current assets 3,717,374 28,695 3,746,069 3,453,220
Noncurrent assets:
Capital assets:
Land 4,360 4,360 4,360
Buildings 162,239 162,239 162,239
Improvements other than buildings 81,198 81,198 81,198
Office furniture and fixtures 14,791 14,791 14,791
Machinery and equipment 349,632 349,632 289,381
Total capital assets 612,220 0 612,220 551,969
Less: Accumulated depreciation (509,609) (509,609) (496,662)
Net capital assets (net of accumulated depreciation) 102,611 0 102,611 55,307
Total noncurrent assets 102,611 0 102,611 55,307
Total assets 3,819,985 28,695 3,848,680 3,508,527
Liabilities
Current liabilities:
Accounts payable 388,738 388,738 312,624
Accrued salaries and withholdings payable 31,468 31,468 23,491
Due to other governmental units 62,615 62,615 71,459
Compensated absences payable - current 1,323 1,323 918
Total current liabilities 484,144 0 484,144 408,492
Noncurrent liabilities:
Compensated absences payable - noncurrent 42,914 42,914 36,842
Total liabilities 527,058 0 527,058 445,334
Net Assets
Invested in capital assets, net of related debt 102,611 102,611 55,308
Unrestricted 3,190,316 28,695 3,219,011 3,007,885
Total net assets $3,292,927 $28,695 $3,321,622 $3,063,193
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 57
Capital
Operating Accounts Total Equipment
Top Heights Operating Replacement Totals
Top Valu Valu II Liquor Accounts Account 2004 2003
Operating revenues:
Charges for sales:
Liquor $1,032,130 $834,232 $467,205 $2,333,567 $ - $2,333,567 $2,277,612
Beer 1,420,526 1,284,601 688,710 $3,393,837 3,393,837 3,445,331
Wine 328,678 366,652 55,512 $750,842 750,842 701,999
Other 202,384 148,118 117,310 $467,812 467,812 509,630
Total operating revenues 2,983,718 2,633,603 1,328,737 6,946,058 0 6,946,058 6,934,572
Operating expenses:
Cost of goods sold 2,277,454 2,053,434 987,443 5,318,331 5,318,331 5,366,137
Operating expense 564,695 425,514 253,778 1,243,987 1,243,987 1,223,988
Depreciation 2,028 9,843 1,076 12,947 12,947 12,175
Total operating expenses 2,844,177 2,488,791 1,242,297 6,575,265 0 6,575,265 6,602,300
Net income (loss) from operations $139,541 $144,812 $86,440 370,793 0 370,793 332,272
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 72,118 1,054 73,172 78,557
Change in fair value (3,126) (46) (3,172) (37,638)
Miscellaneous revenues 29,698 29,698 26,344
Miscellaneous expenses (1,022)
Total nonoperating revenues (expenses) 98,690 1,008 99,698 66,241
Net income before transfers 469,483 1,008 470,491 398,513
Transfer out (212,062) (212,062) (261,981)
Change in net assets 257,421 1,008 258,429 136,532
Net assets - beginning 3,035,506 27,687 3,063,193 2,926,661
Net assets - ending $3,292,927 $28,695 $3,321,622 $3,063,193
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 58
2004 2003
$6,944,957 $6,934,154
(5,941,065) (5,924,334)
(798,087) (752,585)
29,698 26,344
(1,022)
235,503 282,557
(212,062) (261,981)
(60,251)
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers out
Cash flows from capital and related financing activities:
Acquisition of capital assets
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
74,901 80,530
(3,172) (37,638)
71,729 42,892
34,919 63,468
2,046,599 1,983,131
$2,081,518 $2,046,599
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
$370,793
$332,272
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
(Increase) decrease in inventory, at cost
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued salaries and withholdings payable
Increase (decrease) in due to other governmental units
Increase (decrease) in compensated absences payable
Total adjustments
29,698 26,344
(1,022)
12,947 12,175
(1,101) (577)
853 159
(93) (5,441 )
(259,318) (192,938)
76,114 78,338
7,977 12,875
(8,844) 12,847
6,477 7,525
(135,290) (49,715)
$235,503 $282,557
Net cash flows from operating activities
160
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing on a cost reimbursement basis of
goods or services provided by one department or agency to other departments or agencies within
the City.
Central Garage Fund - used to account for the costs of operating a maintenance facility for
automotive equipment used by other City departments. Such costs are billed to other
departments at actual cost plus a fixed overhead factor. The automotive equipment itself is
acquired by the various user departments which are responsible for financing replacement
vehicles as necessary.
Data Processing Fund - used to account for the costs associated with data processing within the
City. All costs are recorded in the fund and allocated to user departments.
Insurance Fund - used to account for certain costs of the City's risk management services and to
build a reserve for catastrophic losses. All costs for claims and claims administration are
recorded in the fund and allocated to user funds based on a percentage risk factor. Insurance
premiums are recorded directly in the user funds.
Compensated Absences Fund - used to account for funds that have been set aside by the City
Council for compensated absences.
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31,2003
Statement 59
Central Data Compensated Totals
Garage Processing Insurance Absences 2004 2003
Assets
Current assets:
Cash and cash equivalents $306,065 $751,635 $1,026,082 $599,624 $2,683,406 $2,176,028
Receivables:
Accounts (net of allowance
for uncollectibles) 2,281
Interest 252 227 7,272 7,751 6,614
Due from other governmental units 15,789
Interfund receivable 41,952 41,952
Prepayments 40,232 40,232 10,853
Inventory - at cost 49,402 49,402 50,382
Total current assets 355,719 751,862 1,115,538 599,624 2,822,743 2,261,947
Noncurrent assets:
Capital assets:
Buildings 371,383 371,383 371,383
Improvements other than buildings 119,846 119,846 119,846
Machinery and equipment 77,044 38,844 115,888 103,183
Total capital assets 568,273 38,844 0 0 607,117 594,412
Less: Accumulated depreciation (476,161) (26,492) (502,653) (470,251)
Total capital assets (net of
accumulated depreciation) 92,112 12,352 104,464 124,161
Total noncurrent assets 92,112 12,352 0 0 104,464 124,161
Total assets 447,831 764,214 1,115,538 599,624 2,927,207 2,386,108
Liabilities
Current liabilities:
Accounts payable 12,239 84,758 2,195 99,192 15,864
Accrued salaries and withholdings payable 5,356 4,835 10,191 6,047
Compensated absences payable - current 865 269 17,431 18,565 14,873
Total current liabilities 18,460 89,862 2,195 17,431 127,948 36,784
Noncurrent liabilities:
Compensated absences payable - noncurrent 28,064 8,714 565,535 602,313 596,949
Total noncurrent liabilities 28,064 8,714 0 565,535 602,313 596,949
Total liabilities 46,524 98,576 2,195 582,966 730,261 633,733
Net Assets
Invested in capital assets, net of related debt 92,112 12,352 104,464 124,162
Unrestricted 309,195 653,286 1,113,343 16,658 2,092,482 1,628,213
Total net assets $401,307 $665,638 $1,113,343 $16,658 $2,196,946 $1,752,375
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31, 2003
Statement 60
Central Data Compensated Totals
Garage Processing Insurance Absences 2004 2003
Operating revenues:
Charges for services:
Services to departments $198,020 $ - $ - $ - $198,020 $200,013
Use of space 241,129 241,129 219,207
Insurance allocation 559,680 559,680 572,401
Recovery of damages 11,668 11,668 41,059
Charges for sales:
Sales of gasoline 75,939 75,939 61,298
Total operating revenues 515,088 0 571,348 0 1,086,436 1,093,978
Operating expenses:
Cost of services and space 318,195 243,537 269,617 831,349 909,492
Claims administration 7,895 7,895 4,406
Claims 14,557 14,557 11 ,184
Depreciation 32,049 353 32,402 43,059
Total operating expenses 350,244 243,890 292,069 0 886,203 968,141
Net income (loss) from operations 164,844 (243,890) 279,279 0 200,233 125,837
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 1,193 1,076 34,535 36,804 30,326
Change in fair value (51) (46) (1,497) (1,594) (14,529)
Miscellaneous revenues 485 485 2,589
Total nonoperating revenues (expenses) 1,627 1,030 33,038 0 35,695 18,386
Net income (loss) before transfers 166,471 (242,860) 312,317 0 235,928 144,223
Transfers in 4,000 299,143 303,143 314,000
Transfers out (94,500) (94,500) (94,500)
Total transfers (90,500) 299,143 0 0 208,643 219,500
Change in net assets 75,971 56,283 312,317 0 444,571 363,723
Net assets - beginning 325,336 609,355 801,026 16,658 1,752,375 1,388,652
Net assets - ending $401,307 $665,638 $1,113,343 $16,658 $2,196,946 $1,752,375
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 3 1, 2003
Statement 61
Central Data Compensated Totals
Garage Processing Insurance Absences 2004 2003
Cash flows from operating activities:
Cash received from interfund goods and services provided $517,369 $ - $559,680 $4,995 $1,082,044 $1,083,567
Cash received for damages 27,457 27,457 25,270
Cash paid to suppliers for goods and services (165,285) (23,405) (320,822) (509,512) (624,247)
Cash payments to employees for services (142,751) (138,404) (281,155) (284,839)
Miscellaneous revenues 485 485 2,589
Net cash flows from operating activities 209,818 (161,809) 266,315 4,995 319,319 202,340
Cash flows from noncapita1 financing activities:
Transfers in 4,000 299,143 303,143 314,000
Transfers out (94,500) (94,500) (94,500)
Interfund receivable advanced to other funds (41,952) (41,952)
Net cash flows from
noncapita1 financing activities (90,500) 299,143 (41,952) 0 166,691 219,500
Cash flows from capital and related financing activities:
Acquisition of capital assets (12,705) (12,705)
Cash flows from investing activities:
Investment income:
Interest and dividends 1,178 1,093 33,397 35,668 29,651
Change in fair value (52) (46) (1,497) (1,595) (14,529)
Net cash flows from investing activities 1,126 1,047 31,900 0 34,073 15,122
Net increase (decrease) in cash and cash equivalents 120,444 125,676 256,263 4,995 507,378 436,962
Cash and cash equivalents - January 1 185,621 625,959 769,819 594,629 2,176,028 1,739,066
Cash and cash equivalents - December 31 $306,065 $751,635 $1,026,082 $599,624 $2,683,406 $2,176,028
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $164,844 ($243,890) $279,279 $ $200,233 $125,837
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 485 485 2,589
Depreciation expense 32,049 353 32,402 43,059
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 2,281 2,281 172
(Increase) decrease in due from other governmental units 15,789 15,789 (15,789)
(Increase) decrease in prepayments (29,379) (29,379) 1,624
(Increase) decrease in inventory, at cost 980 980 15,977
Increase (decrease) in accounts payable 3,899 78,803 626 83,328 (8,166)
Increase (decrease) in accrued
salaries and withho1dings payable 3,129 1,015 4,144 2,732
Increase (decrease) in compensated absences payable 2,151 1,910 4,995 9,056 34,305
Total adjustments 44,974 82,081 (12,964) 4,995 119,086 76,503
Net cash flows from operating activities $209,818 ($161,809) $266,315 $4,995 $319,3 19 $202,340
164
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 62
Capital
Equipment
Operating Replacement Totals
Account Account 2004 2003
Assets
Current assets:
Cash and cash equivalents $271,827 $34,238 $306,065 $185,621
Receivables:
Accounts (net of allowance for uncollectibles) 2,281
Interest 252 252 236
Inventory - at cost 49,402 49,402 50,382
Total current assets 321,229 34,490 355,719 238,520
Noncurrent assets:
Capital assets:
Buildings 371,383 371,383 371,383
Improvements other than buildings 119,846 119,846 119,846
Machinery and equipment 77,044 77,044 77,044
Total capital assets 568,273 0 568,273 568,273
Less: Accumulated depreciation (476,161 ) 0 (476,161) (444,112)
Total capital assets (net of
accumulated depreciation 92,112 92,112 124,161
Total noncurrent assets 92,112 0 92,112 124,161
Total assets 413,341 34,490 447,831 362,681
Liabilities
Current liabilities:
Accounts payable 12,239 12,239 8,340
Accrued salaries and withholdings payable 5,356 5,356 2,227
Compensated absences payable - current 865 865 651
Total current liabilities 18,460 0 18,460 11,218
Noncurrent liabilities:
Compensated absences payable - noncurrent 28,064 28,064 26,127
Total liabilities 46,524 0 46,524 37,345
Net Assets
Invested in capital assets, net of related debt 92,112 92,112 124,162
Unrestricted 274,705 34,490 309,195 201,174
Total net assets $366,817 $34,490 $401,307 $325,336
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 63
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Capital
Equipment
Operating Replacement Totals
Account Account 2004 2003
Operating revenues:
Charges for services:
Services to departments $198,020 $ - $198,020 $200,013
Use of space 241,129 241,129 219,207
Charges for sales:
Sales of gasoline 75,939 75,939 61,298
Total operating revenues 515,088 0 515,088 480,518
Operating expenses:
Cost of services and space 318,195 318,195 322,884
Depreciation 32,049 32,049 35,657
Total operating expenses 350,244 0 350,244 358,541
Net income from operations 164,844 0 164,844 121,977
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 1,193 1,193 1,084
Change in fair value (51 ) (51 ) (519)
Miscellaneous revenues 485 485 2,589
Total nonoperating revenues (expenses) 485 1,142 1,627 3,154
Net income before transfers 165,329 1,142 166,471 125,131
Transfers in 4,000 4,000 4,000
Transfers out (94,500) (94,500) (94,500)
Total transfers (94,500) 4,000 (90,500) (90,500)
Change in net assets 70,829 5,142 75,971 34,631
Net assets - beginning 295,988 29,348 325,336 290,705
Net assets - ending $366,817 $34,490 $401,307 $325,336
166
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 64
2004 2003
$517,369 $480,690
(165,285) (156,820)
(142,751) (149,226)
485 2,589
209,818 177,233
4,000 4,000
(94,500) (94,500)
(90,500) (90,500)
Cash flows from operating activities:
Cash received from interfund goods & services provided
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Net cash flows from noncapital financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
1,178 1,080
(52) (519)
1,126 561
120,444 87,294
185,621 98,327
$306,065 $185,621
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income
$164,844
$121,977
Adjustments to reconcile operating income to net
cash flows from operating activities:
Miscellaneous revenues
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in inventory, at cost
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued salaries and withholdings payable
Increase (decrease) in compensated absences payable
Total adjustments
485 2,589
32,049 35,657
2,281 172
980 15,977
3,899 (1,956)
3,129 834
2,151 1,983
44,974 55,256
$209,818 $177,233
Net cash flows from operating activities
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 65
Capital
Equipment
Operating Replacement Totals
Account Account 2004 2003
Assets
Current assets:
Cash and cash equivalents $722,557 $29,078 $751,635 $625,959
Interest receivable 227 227 244
Total current assets 722,557 29,305 751,862 626,203
Noncurrent assets:
Capital assets:
Machinery and equipment 38,844 38,844 26,139
Total capital assets 38,844 0 38,844 26,139
Less: Accumulated depreciation (26,492) (26,492) (26,139)
Net capital assets (net of
accumulated depreciation) 12,352 12,352
Total noncurrent assets 12,352 0 12,352 0
Total assets 734,909 29,305 764,214 626,203
Liabilities
Current liabilities:
Accounts payable 84,758 84,758 5,955
Accrued salaries and withholdings payable 4,835 4,835 3,820
Compensated absences payable - current 269 269 172
Total liabilities 89,862 0 89,862 9,947
Noncurrent liabilities:
Compensated absences payable - noncurrent 8,714 8,714 6,901
Total liabilities 98,576 0 98,576 16,848
Net Assets
Invested in capital assets, net of related debt 12,352 12,352
Unrestricted 623,981 29,305 653,286 609,355
Total net assets $636,333 $29,305 $665,638 $609,355
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 66
Capital
Equipment
Operating Replacement Totals
Account Account 2004 2003
Operating revenues $ $ $ $
Operating expenses:
Cost of services 243,537 243,537 189,671
Depreciation 353 353 7,402
Total operating expenses 243,890 0 243,890 197,073
Net income (loss) from operations (243,890) 0 (243,890) (197,073)
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 1,076 1,076 1,121
Change in fair value (46) (46) (537)
Total nonoperating revenues (expenses) 0 1,030 1,030 584
Net income (loss) before transfers (243,890) 1,030 (242,860) (196,489)
Transfers in 299,143 299,143 310,000
Change in net assets 55,253 1,030 56,283 113,511
Net assets - beginning 581,080 28,275 609,355 495,844
Net assets - ending $636,333 $29,305 $665,638 $609,355
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 67
2004
2003
Cash flows from operating activities:
Cash paid to suppliers for goods and services
Cash payments to employees for services
Net cash flows from operating activities
($23,405)
(138,404)
(161,809)
($58,093)
(135,613)
(193,706)
Cash flows from noncapital financing activities:
Transfers in
299,143
310,000
Cash flows from capital and related financing activities:
Acquisition of capital assets
(12,705)
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
1,093 1,159
(46) (537)
1,047 622
125,676 116,916
625,959 509,043
$751,635 $625,959
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense
Changes in assets and liabilities:
Increase ( decrease) in accounts payable
Increase ( decrease) in accrued salaries and withholdings payable
Increase (decrease) in compensated absences payable
Total adjustments
($243,890) ($197,073)
353 7,402
78,803 (7,779)
1,015 1,898
1,910 1,846
82,081 3,367
($161,809) ($193,706)
Net cash flows from operating activities
170
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 68
2004 2003
Assets
Current assets:
Cash and cash equivalents $1,026,082 $769,819
Receivables:
Interest 7,272 6,134
Due from other governmental units 15,789
Interfund receivable 41,952
Prepayments 40,232 10,853
Total assets 1,115,538 802,595
Liabilities
Liabilities
Accounts payable 2,195 1,569
Net Assets
Unrestricted 1,113,343 801,026
Total net assets $1,113,343 $801,026
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 69
2004 2003
Operating revenues:
Insurance allocation $559,680 $572,401
Recovery of damages 11,668 41,059
Total operating revenues 571,348 613,460
Operating expenses:
Cost of services and space 269,617 396,937
Claims administration 7,895 4,406
Claims 14,557 11 ,184
Total operating expenses 292,069 412,527
Net income from operations 279,279 200,933
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 34,535 28,121
Change in fair value (1,497) (13,473)
Total nonoperating revenues (expenses) 33,038 14,648
Change in net assets 312,317 215,581
Net assets - beginning 801,026 585,445
Net assets - ending $1,113,343 $801,026
172
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 70
2004
2003
Cash flows from operating activities:
Cash received from interfund services provided
Cash received for damages
Cash paid to suppliers for goods and services
Net cash flows from operating activities
$559,680
27,457
(320,822)
266,315
$572,401
25,270
( 409,334)
188,337
Cash flows from noncapital financing activities:
Interfund receivable advanced to other funds
(41,952)
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
33,397 27,412
(1,497) (13,473)
31,900 13,939
256,263 202,276
769,819 567,543
$1,026,082 $769,819
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
$279,279
$200,933
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
Increase ( decrease) in accounts payable
Total adjustments
15,789 (15,789)
(29,379) 1,624
626 1,569
(12,964) (12,596)
$266,315 $188,337
Net cash flows from operating activities
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2004
With Comparative Totals For December 31, 2003
Statement 71
2004 2003
Assets
Current assets:
Cash and cash equivalents $599,624 $594,629
Liabilities
Current liabilities:
Compensated absences payable - current 17,431 14,050
Noncurrent liabilities:
Compensated absences payable - noncurrent 565,535 563,921
Total liabilities 582,966 577,971
Net Assets
Unrestricted 16,658 16,658
Total net assets $16,658 $16,658
174
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 72
2004
Operating revenues:
Charges for services
$
Operating expenses:
Cost of services
Change in net assets
Net assets - beginning
16,658
Net assets - ending
$16,658
175
2003
$
o
o
16,658
$16,658
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
F or The Year Ended December 31, 2004
With Comparative Totals For The Year Ended December 31,2003
Statement 73
2004
Cash flows from operating activities:
Cash received from interfund services provided
$4,995
Net increase in cash and cash equivalents
4,995
Cash and cash equivalents - January 1
594,629
Cash and cash equivalents - December 31
$599,624
Reconciliation of operating income to
net cash flows from operating activities
Operating income
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease) in compensated absences payable
Total adjustments
$
4,995
4,995
Net cash flows from operating activities
$4,995
176
2003
$30,476
30,476
564,153
$594,629
$
30,476
30,476
$30,476
AGENCY FUNDS
Agency Funds are used to account for assets held by a government in a trustee or agent capacity
for individuals, private organizations, other governments and the like.
The City of Columbia Heights had the following Agency Funds during the year:
Permit Surcharge Fund - used to account for SAC charges and surcharges collected for and
remitted to the State of Minnesota.
Escrow Fund - used to account for payroll-related assets and liabilities.
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
December 31, 2004
Statement 74
Balance Balance
January 1, December 31,
2004 Additions Deletions 2004
Permit Surcharge Fund
Assets
Cash and investments $94 $91,069 $ $91,163
Liabilities
Due to other governmental units $94 $91,069 $ $91,163
Escrow Fund
Assets
Cash and investments $4,068 $31,806 $ $35,874
Receivables:
Accounts 822 606 216
Due from other governmental units 19,081 19,081
Loans 31,680 31,680
Prepayments 23,884 23,884
Total assets $36,570 $74,771 $32,286 $79,055
Liabilities
Accounts payable $4,579 $3,851 $ $8,430
Due to other governmental units 26,050 42,984 69,034
Deposits 4,350 4,350
Other liabilities 1,591 1,591
Total liabilities $36,570 $46,835 $4,350 $79,055
Total
Assets
Cash and investments $4,162 $122,875 $ $127,037
Receivables:
Accounts 822 606 216
Due from other governmental units 19,081 19,081
Loans 31,680 31,680
Prepayments 23,884 23,884
Total assets $36,664 $165,840 $32,286 $170,218
Liabilities
Accounts payable $4,579 $3,851 $ $8,430
Due to other governmental units 26,144 134,053 160,197
Deposits 4,350 4,350
Other liabilities 1,591 1,591
Total liabilities $36,664 $137,904 $4,350 $170,218
178
SUPPLEMENTARY FINANCIAL INFORMATION
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINED SCHEDULE OF BONDS PAY ABLE
December 31, 2004
GENERAL LONG-TERM DEBT ACCOUNT GROUP:
G.O. Tax Increment Bonds
Capital Appreciation Bonds of 1990: Bonds due on or after September 1, 2006
are callable commencing September 1, 2005 and on any March 1 or September 1
thereafter at a price equal to the accreted amount on the date of redemption.
Series 2004A Tax Increment Refunding Bonds: Bonds due on or after
September 1, 2008 are callable commencing March 1,2008 and on any date
thereafter at a price of par plus accrued interest.
G.O. Improvement Bonds
Series 1999A: Bonds due on or after February 1,2008 are callable commencing
February 1,2007 and on any date thereafter at a price of par plus accrued
interest.
Series 2003A: Bonds due on or after February 1,2011 are callable commencing
February 1,2010 and on any date thereafter at a price of par plus accrued interest.
Total Bonds - General Long Term Debt Account Group
180
Interest Issue Maturity
Rate Date Date
9/01 8/23/1990 9/1/2009
6.90%
6.95%
7.00%
7.00%
7.10%
7.10%
7.15%
7.15%
9/01 12/26/2004 9/1/2009
2.00%
2.25%
2.50%
2.75%
2/01-8/01
3.45%
3.55%
3.65%
3.80%
3.90%
4.00%
4.10%
4.15%
4.25%
4.30%
5/1/1999
2/1/2010
2/01-8/01
1. 10%
1.30%
1.60%
2.10%
2.40%
2.75%
3.00%
3.25%
3.40%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
6/1/2003
2/1/2018
Exhibit 1
Page 1 of2
Original
Issue
$2,399,721
1,985,000
860,000
1,332,828
6,577,549
Balance
1/1/2004
$1,630,288
605,000
1,332,828
3,568,116
Sold
$ -
1,985,000
1,985,000
Retired
$350,584
95,000
69,205
514,789
181
Balance
12/31/2004
$1,279,704
1,985,000
510,000
1,263,623
5,038,327
Interest Paid in
Current Year
$569,416
22,735
45,177
637,328
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINED SCHEDULE OF BONDS PAY ABLE
December 31, 2003
PROPRIETARY FUNDS
G.O. Utility Revenue Bonds
Series 1999B: Bonds due on or after February 1,2008 are callable commencing
February 1,2007 and on any date thereafter at a price of par plus accrued
interest.
Series 2003A: Bonds due on or after February 1,2011 are callable commencing
February 1,2010 and on any date thereafter at a price of par plus accrued interest.
Total Bonds - Proprietary Funds
Total General Obligation Bonds
182
Interest Issue Maturity
Rate Date Date
2/01-8/01 5/1/1999 2/1/2010
3.45%
3.55%
3.65%
3.80%
3.90%
4.00%
4.10%
4.15%
4.25%
4.30%
2/01-8/01 6/1/2003 2/1/2018
1. 10%
1.30%
1.60%
2.10%
2.40%
2.75%
3.00%
3.25%
3.40%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
Exhibit 1
Page 2 of2
Original
Issue
$1,935,000
1,267,172
3,202,172
$9,779,721
Balance
1/1/2004
$1,470,000
1,267,172
2,737,172
$6,305,288
Sold
$
o
$1,985,000
Retired
$185,000
o
65,795
250,795
$765,584
183
Balance
12/31/2004
$1,285,000
1,201,377
2,486,377
$7,524,704
Interest Paid in
Current Year
$56,305
42,951
99,256
$736,584
- This page intentionally left blank -
184
III. STATISTICAL SECTION (UNAUDITED)
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GOVERNMENT- WIDE EXPENSES BY FUNCTION
Years 2002 Through 2004
(Unaudited)
Culture
Fiscal General Public Public and Community
Year Government Safety Works Recreation Development
2002 $1,915,920 $3,920,746 $1,659,152 $2,018,571 $1,679,107
2003 1,756,434 3,630,535 2,646,859 1,909,831 1,239,030
2004 1,669,721 3,640,970 2,1 09,060 1,904,848 2,171,407
Note: Government-wide expenses are not available for years prior to 2002.
186
Table 1
Interest on
Long-term Storm
Debt Water Sewer Refuse Sewer Liquor Total
$575,712 $1,561,071 $1,058,721 $1,271,961 $162,499 $6,343,775 $22,167,235
414,297 1,903,331 1,231,594 1,330,272 204,895 6,619,942 22,887,020
387,544 1,637,316 1,219,200 1,321,730 158,374 6,593,578 22,813,748
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GOVERNMENT- WIDE REVENUES
Years 2002 Through 2004
(Unaudited)
Program Revenues
Charges Operating Capital
Fiscal For Grants and Grants and
Year* Services Contributions Contributions
2002 $12,706,748 $1,272,637 $4,640,568
2003 13,162,591 1,054,021 895,109
2004 13,598,752 1,724,378 1,881,401
Notes:
* Government-wide revenues are not available for years prior to 2002.
188
Table 2
General Revenues
Grants and
Contributions
Not Restricted Unrestricted Gain (loss)
Property Tax to Specific Investment on disposal of
Taxes Increments Program Earnings Capital Assets Total
$4,341,972 $798,446 $3,275,417 $1,577,071 $6,454 $28,619,313
4,306,036 781,439 2,712,408 534,879 103,524 23,550,007
4,989,205 972,208 2,337,386 729,456 26,232,786
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A, C)
Years 1995 Through 2004
(Unaudited)
Table 3
Culture
Fiscal General Public Public and Community Debt Other
Year Government Safety Works Recreation Development Service (B) Total
1995 $1,395,395 $2,550,980 $1,012,634 $1,383,686 $ $1,424,633 $833,417 $8,600,745
1996 1,354,292 2,597,866 1,090,257 1,464,130 1,475,888 1,608,033 9,590,466
1997 1,397,129 2,542,310 1,159,933 1,629,154 1,477,132 1,752,565 9,958,223
1998 1,449,476 2,675,544 1,034,362 1,694,361 1,414,259 2,975,143 11,243,145
1999 1,548,597 2,838,483 1,128,793 1,703,320 1,270,994 2,506,097 10,996,284
2000 1,530,423 2,950,642 1,037,534 1,811,671 1,233,723 2,846,566 11 ,41 0,559
2001 1,485,904 3,140,180 1,013,303 1,856,672 1 ,181 ,193 2,756,581 11,433,833
2002 1,868,475 3,829,178 1,074,477 1,897,690 713,526 1,277,737 1,022,281 11,683,364
2003 1,679,349 3,613,737 1,113,531 1,865,796 285,795 1,080,510 865,984 10,504,702
2004 1,576,233 3,500,668 1,249,704 1,928,173 420,289 1,208,182 649,090 10,532,339
Notes:
(A) Includes General, Special Revenue, and Debt Service Fund Types.
(B) This column includes the Housing and Redevelopment Authority and the Economic Development Authority.
In the basic financial statements, these entities are included under the Community Development function
as a blended component units of the City, except for 1995 when the Housing and Redevelopment Authority
was a discretely presented component unit.
(C) Beginning in 2002, the Municipal State Aid Construction, the Downtown Parking Ramp, and the Housing
Mortgage Funds were reclassified as Capital Project Funds.
190
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL GOVERNMENTAL REVENUES BY SOURCE (A,B,C)
Years 1995 through 2004
(Unaudited)
Table 4
Fiscal Licenses Inter- Charges for Fines and Investment Misc-
Year Taxes and Permits governmental Services Forfeitures Income ellaneous Total
1995 $4,167,428 $176,290 $3,755,162 $383,646 $89,138 $321,971 $83,954 $8,977,589
1996 3,840,481 223,758 4,139,604 879,601 125,543 361,401 167,606 9,737,994
1997 4,489,572 202,533 4,302,631 923,485 127,074 443,034 127,862 10,616,191
1998 4,449,833 289,411 5,286,058 1,167,676 121,858 454,776 287,937 12,057,549
1999 4,413,680 401,158 5,282,867 1,029,899 100,161 135,144 242,852 11,605,761
2000 4,809,958 268,014 5,204,427 1,106,613 90,218 754,535 193,270 12,427,035
2001 4,878,197 292,744 6,215,883 1,191,165 87,760 622,688 177,754 13,466,191
2002 4,971,607 277,924 4,762,439 1,166,876 84,346 636,329 147,341 12,046,862
2003 4,882,672 281,480 3,569,993 1,125,431 140,378 122,667 175,307 10,297,928
2004 5,689,299 506,319 3,612,175 1,137,429 140,282 247,870 91,973 11,425,347
Notes:
(A) Includes General, Special Revenue, and Debt Service Fund Types.
(B) This schedule includes the Housing and Redevelopment Authority and the Economic Development Authority
as a blended component units of the City, except for 1995 when the Housing and Redevelopment Authority
was a discretely presented component unit.
(C) Beginning in 2002, the Municipal State Aid Construction, the Downtown Parking Ramp, and the Housing
Mortgage Funds were reclassified as Capital Project Funds.
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TAX LEVIES AND TAX COLLECTIONS
Years 1995 Through 2004
(Unaudited)
Table 5
Ratio of
Collections Percentage Accum.
Adjusted of Current of Levy Collections Ratio Delinquent
By Market Years Taxes Collected of Prior of Total T axes to
Value During During Years Taxes Collections Accum. Current
Year Total Homestead Net Fiscal Fiscal During Fiscal Total to Tax Delinquent Year
Collected T ax Levy Credit* Tax Levy Period Period Period Collections Levy Taxes T ax Levy
1995 $2,608,699 $ $2,608,699 $2,571,649 98.6% $12,843 $2,584,492 0.9907:1 $40,418 0.01549:1
1996 2,754,161 2,754,161 2,726,715 99.0% 78,666 2,805,381 1.0186:1 33,408 0.01213:1
1997 3,038,144 3,038,144 3,001,061 98.8% 23,818 3,024,879 0.9956:1 48,239 0.01588:1
1998 3,201,434 3,201,434 3,163,132 98.8% 26,314 3,189,446 0.9963:1 77,078 0.02408:1
1999 3,238,625 3,238,625 3,182,088 98.3% 35,374 3,217,463 0.9935: 1 103,465 0.03195:1
2000 3,295,956 3,295,956 3,267,728 99.1% 73,658 3,341,386 1.0138:1 67,692 0.02054:1
2001 3,625,552 3,625,552 3,584,080 98.9% 28,580 3,612,660 0.9964:1 77,177 0.02129:1
2002 4,824,130 570,152 4,253,978 4,194,432 98.6% 34,504 4,228,936 0.9941:1 74,841 0.01759: 1
2003 4,817,984 607,323 4,210,661 4,135,156 98.2% 44,380 4,179,536 0.9926: 1 82,519 0.01960:1
2004 5,447,260 588,271 4,858,989 4,760,788 98.0% 57,527 4,818,315 0.9916: 1 105,861 0.02179:1
Source: Certification of Truth in Taxation document filed with Anoka County by the City of Columbia Heights and Anoka County Tax
Collections
Note: Beginning in 2002, the Final Tax Levy includes the Market Value Homestead Credit.
192
CITY OF COLUMBIA HEIGHTS, MINNESOTA
ASSESSED VALUE, TAX CAPACITY, AND
ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A)
Years 1995 Through 2004
(Unaudited)
Table 6
Ratio of Total
AssessedITax
Real Property Personal Property Area Wide Allocation (A) Totals Capacity Value
Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total
Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated
Year Value Value Value Value Contribution Distribution Value Value Actual Value
1995 $9,021,129 $541,715,800 $207,658 $4,549,100 ($608,080) $2,759,929 $11,380,636 $546,264,900 2.08%
1996 8,884,233 546,047,800 220,961 4,803,500 (552,406) 2,603,671 11,156,459 550,851,300 2.03%
1997 9,185,608 564,682,300 224,356 4,912,100 (449,141) 2,873,097 11,833,920 569,594,400 2.08%
1998 8,840,736 586,529,700 193,445 4,891,100 (512,532) 2,540,064 11,061,713 591,420,800 1. 87%
1999 8,557,027 608,453,400 168,578 4,871,900 (505,598) 2,527,183 10,747,190 613,325,300 1.75%
2000 9,219,621 657,162,700 161,709 4,839,300 (503,719) 2,777,292 11,654,903 662,002,000 1.76%
2001 10,304,905 744,888,200 157,970 4,733,500 (573,922) 3,085,984 12,974,937 749,621,700 1.73%
2002 8,756,307 839,022,200 91,466 4,647,500 (385,323) 1,976,846 10,439,296 843,669,700 1.24%
2003 8,665,656 977,677,300 95,322 4,840,300 (409,330) 2,111,495 10,463,143 982,517,600 1.06%
2004 9,511,823 1,072,678,600 99,232 5,035,800 (379,508) 2,267,401 11,498,948 1,077,714,400 1.07%
(A) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in
commercial-industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area-wide
tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This
index is employed in determining what proportion of the valuation shall be distributed back to each assessment district.
Source: Anoka County: Taxes & Taxable Property in the City of Columbia Heights
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TAX RATES - PER $100 OF TAX CAPACITY (A)
Years 1995 Through 2004
(Unaudited)
Table 7
Year City School County Metro Other (A) Total
1995 0.25686 0.69161 0.29899 0.04370 0.01570 1.30686
1996 0.26460 0.77730 0.29946 0.05280 0.01488 1. 40904
1997 0.29018 0.84748 0.28000 0.04605 0.01381 1.47752
1998 0.30991 0.68491 0.27845 0.05183 0.02287 1. 34797
1999 0.31925 0.68837 0.29426 0.05685 0.02442 1.38315
2000 0.30147 0.66465 0.28125 0.05326 0.03212 1.33275
2001 0.30564 0.47452 0.26432 0.05354 0.03073 1.12875
2002 0.49114 0.38614 0.34761 0.0287 0.04158 1.29517
2003 0.45272 0.20303 0.34617 0.03158 0.04192 1.07542
2004 0.47888 0.22833 0.32722 0.02866 0.04196 1.10505
(A)
For years 1995-1997: Rice Creek Watershed, Mosquito Control, and Housing and Redevelopment
Authority.
For years 1998-2004 Rice Creek Watershed, Mosquito Control, Housing and Redevelopment Authority,
and County Regional Rail Authority
Source:
Anoka County: Taxes & Taxable Property in the City of Columbia Heights
194
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY TAX LEVY
Years 1995 Through 2004
(Unaudited)
Table 8
Fiscal City Levy General
Year Total Fund Library EDA Special PERA
1995 $3,587,209 $3,196,861 $390,348 $ $
1996 2,754,161 2,340,393 413,768
1997 3,038,144 2,517,101 422,043 99,000
1998 3,201,434 2,659,289 443,145 99,000
1999 3,238,625 2,660,059 467,518 111,048
2000 3,295,956 2,676,416 500,244 119,296
2001 3,625,552 2,958,490 547,767 119,295
2002 4,824,130 4,083,494 591,588 137,015 12,033
2003 4,817,984 4,243,830 433,585 140,569
2004 5,447,260 4,928,710 433,585 84,965
Source: Certification of Truth in Taxation document filed with Anoka County by the City of
Columbia Heights.
195
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS Table 9
December 31, 2004
(Unaudited)
Taxpayer Type of Business
Medtronic, Inc.
Medical Manufacturing
Bradley Operating LP
Commercial
Consolidated Reality of Minneapolis
Apartments
Columbia Park Properties
Medical Building
Equity Partners LLC
Commercial/Industrial
Columbia Heights Center
Mall
Crestview Corporation
Apartments
Xcel Energy
Utility
Jeff's Bobby & Steves Auto World
Commercial
Lynde Investment Co
Apartments
Total Principal Taxpayers
%of
Total City
Tax Capacity Tax Capacity
Value Value
$171,960 1.50%
127,658 1.11%
91,724 0.80%
83,842 0.73%
77,140 0.67%
67,250 0.58%
61,188 0.53%
53,698 0.47%
53,548 0.47%
53,209 0.46%
$841,217 7.32%
City Total
$11,498,948
Source: Anoka County and Taxable Property in the City of Columbia Heights
196
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS (A)
Years 1995 Through 2004
(Unaudited)
Table 10
Deferred Special Assessments
Current Current Collections Special Collected (A) Balance
Fiscal Assessments %of Delinquent Assessments During at End of
Year Due Amount Levy Collections Delinquent Fiscal Period Fiscal Period
1995 $159,282 $86,587 54.4% $53,447 $79,057 $25,130 $186,323
1996 64,767 38,470 59.4% 58,495 34,147 70,506 158,269
1997 76,405 32,286 42.3% 21,532 54,706 259,263 558,078
1998 141,739 96,1 00 67.8% 36,320 63,342 413,629 626,176
1999 136,207 86,221 63.3% 58,414 83,475 279,890 604,210
2000 154,355 100,790 65.3% 73,583 84,483 293,080 636,992
2001 166,451 114,766 68.9% 76,680 80,906 453,679 737,537
2002 199,905 120,665 60.4% 65,149 110,567 421,259 1,073,860
2003 198,497 186,337 93.9% 91,725 28,642 278,606 1,195,738
2004 216,411 200,724 92.8% 24,047 20,265 446,1 00 1,577,767
(A) The City offers the property owner the option to prepay deferred special assessments directly to the City
until they become due. Installments that become due (are not prepaid), are certified to the County for
inclusion on the following year's property tax statement.
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2004
(Unaudited)
Table 11
Taxable Market Value
$956,672,000
Debt Limit Percentage (Note A)
Statutory Debt limit
Amount of Debt applicable to debt limit:
Total bonded debt
2%
19,133,440
Less (Note B): Tax increment bonds
Special assessment bonds
Revenue bonds
7,524,704
3,264,704
1,773,623
2,486,377
o
$19,133,440
Total amount of debt applicable to debt limit
Legal debt margin
Note A:
M.S.A Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in
Sections 475.51 to 475.75, "no municipality, except a school district or a city of the first class, shall incur
or be subject to a net debt in excess of 2% of the taxable market value."
Note B:
M.S.A Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after
deducting from its gross debt the amount of current revenues which are applicable within the current
fiscal year to the payment of any debt and the aggregate of the principal of the following:
1. Obligations issued for improvements which are payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited thereby, including those which are
general obligations of the municipality issuing them, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of the special assessments.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a Permanent Improvement Revolving Fund.
5. Obligations issued for the acquisition and betterment of public water works systems and public
lighting, heating or power systems, and of any combination thereof or for any other public
convenience from which a revenue is or may be derived.
6. Not applicable.
7. Amount of all money and face value of all securities held as a Debt Service Fund for the
extinguishment of obligations other than those deductible under this subdivision.
8. All other obligations which under the provisions of law authorizing their issuance are not to be
included in computing the net debt of the municipality.
198
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT
TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
Years 1995 Through 2004
(Unaudited)
Table 12
Ratio of Net
Gross Bonded Debt to Net Bonded
Fiscal Assessed Bonded Less Debt Net Bonded Assessed Debt Per
Year Population Value Debt Service Fund Debt Val ue Capita
1995 18,910 $11,380,636 $8,624,721 $1,422,979 $7,201,742 63.28% 450
1996 18,910 11 ,156,459 7,469,721 843,287 6,626,434 59.40% 350
1997 18,910 11,833,920 6,314,721 822,740 5,491,981 46.41 % 290
1998 18,910 11,061,713 5,324,721 644,112 4,680,609 42.31% 248
1999 18,910 10,747,190 7,174,721 809,379 6,365,342 59.23% 337
2000 18,520 11,654,903 6,274,721 1,546,331 4,728,390 40.57% 255
2001 18,520 12,974,937 5,254,721 1,710,716 3,544,005 27.31 % 191
2002 18,520 10,439,296 4,363,206 1,187,646 3,175,560 30.42% 171
2003 18,520 10,463,143 6,305,288 841,666 5,463,622 52.22% 295
2004 18,520 11,498,948 7,524,704 3,728,644 3,796,060 33.01 % 205
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 13
FOR GENERAL OBLIGATION BONDED DEBT
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
Years 1995 Through 2004
(Unaudited)
Ratio of
Total Debt Service to
Total General General
Fiscal Debt Governmental Governmental
Year Principal Interest Service Expenditures Expenditures
1995 $1,055,000 $357,961 $1,412,961 $8,600,745 16.4%
1996 1,155,000 304,268 1,459,268 9,590,466 15.2%
1997 1,155,000 246,128 1,401,128 9,958,223 14.1%
1998 990,000 190,390 1,180,390 11,243,145 10.5%
1999 945,000 138,167 1,083,167 10,996,284 9.9%
2000 900,000 224,530 1,124,530 11,410,559 9.9%
2001 1,020,000 144,550 1,164,550 11,433,833 10.2%
2002 891,515 599,415 1,490,930 11,683,364 12.8%
2003 657,918 631,552 1,289,470 10,504,702 12.3%
2004 765,584 736,584 1,502,168 10,441,939 14.4%
200
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2004
(Unaudited)
Table 14
Amount
Applicable to
Net Percentage City of
General Applicable Columbia Heights
Obligation Debt to City Share of Debt
Direct debt:
City of Columbia Heights $7,524,704 100.0000% $7,524,704
Overlapping debt:
Anoka County 84,340,000 4.9404% 4,166,733
Metropolitan Council 200,015,000 0.4830% 966,072
I.S.D. 13 (Columbia Heights) 29,690,000 70.4194% 20,907,520
NE Metro Intermediate Dist. No. 916 1,715,000 2.5168% 43,163
Total overlapping debt 315,760,000 26,083,489
Totals $323,284,704 $33,608,193
Source:
Anoka County Auditor Certificate
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REVENUE BOND COVERAGE: WATER, SEWER AND STORM SEWER FUNDS
Last Ten Years As Applicable
(Unaudited)
Table 15
Net Revenue
Fiscal Gross Operating Available for Debt Service Requirements
Year Revenues (1) Expenses (2) Debt Service Principal (3) Interest (3) Total (3) Coverage
1999 $2,733,079 $2,120,759 $612,320 $ $ $ 0.00
2000 3,216,084 2,201,375 1,014,709 95,497 95,497 10.63
2001 3,1 05,845 2,442,339 663,506 110,000 74,500 184,500 3.60
2002 3,137,928 2,439,443 698,485 175,000 69,496 244,496 2.86
2003 3,1 03,936 2,866,017 237,919 180,000 63,1 05 243,1 05 0.98
2004 3,320,581 2,543,732 776,849 250,795 99,256 350,051 2.22
Notes:
The revenue bonds were issued in 1999, thus statistical information is shown from that year on.
1. Total revenues including investment income.
2. Total expenses excluding depreciation and interest expense
3. Includes principal and interest of revenue bonds presented on a cash basis.
202
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PROPERTY V ALUE AND CONSTRUCTION (A, B, C)
Years 1995 Through 2004
(Unaudited)
Table 16
Property Value (A) Construction (B)
Fiscal No. of Building
Year Real Personal Total Permits Issued Value
1995 $541,715,800 $4,549,100 $546,264,900 596 $4,927,970
1996 546,047,800 4,803,500 550,851,300 602 11,910,040
1997 564,682,300 4,912,1 00 569,594,400 678 5,904,308
1998 586,529,700 4,891,100 591,420,800 869 16,991,747
1999 608,453,400 4,871,900 613,325,300 1,254 24,018,811
2000 657,162,700 4,839,300 662,002,000 794 6,767,183
2001 744,888,200 4,733,500 749,621,700 671 12,547,885
2002 839,022,200 4,647,500 843,669,700 625 8,283,941
2003 977,677,300 4,840,300 982,517,600 577 11,056,530
2004 1,072,678,600 5,035,800 1,077,714,400 493 (C) 49,576,455
(A) Estimated actual values from Table 6.
(B) Source: City License/Permit Clerk
(C) 2004 Construction value includes $30,573,000 for a new water filtration plant that lies
within the City of Columbia Heights, but is owned and operated by the City of Minneapolis.
203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MISCELLANEOUS STATISTICS
December 31, 2004
(Unaudited)
Table 17
Page 1 of 2
Date of Incorporation
March 14,1898
Date of Adoption of City Charter
July 21, 1921
Form of Government
Fiscal Year Begins
Area of City
Council- Manager
January 1
3.52 Square Miles
Miles of Streets and Alleys:
Trunk Highways
County
City Streets
Alleys
3.0
6.2
61.8
18.9
Miles of Sewers:
Storm Sewers
Sanitary Sewers
33.6
59.0
Watermain Miles
66.1
Fire Protection:
Number of Stations
Number of Employees:
Full-time
Part-time
Paid on-call
9
1
30
Police Protection:
Number of Stations
Number of Employees
1
32
City Employees, including Police and Fire
Full-time
Part-time
Paid on-call
Total
102
60
30
192
204
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MISCELLANEOUS STATISTICS
December 31, 2004
(Unaudited)
Table 17
Page 2 of2
Parks:
City Parks
Playgrounds
County Park
Schools:
Senior High
Junior High
Elementary
Parochial Elementary
Elections (source: City Clerk):
11/02/04 City General Election (most recent election):
Registered voters
Number of Votes Cast
Percentage of Registered Voters Voting
11/05/ 02 City General Election
Registered voters
Number of Votes Cast
Percentage of Registered Voters Voting
Population:
1900
1920
1930
1940
1950
1960
1970
1975 (Mid-Decade Census)
1980
1985
1990 (Census)
2000 (Census)
13
11
1
1
1
3
1
12,510
10,039
80.25%
10,261
8,405
81.91 %
123
2,968
5,613
6,053
8,175
17,533
23,997
23,316
20,029
19,540
18,910
18,520
205
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC STATISTICS
(Unaudited)
Table 18
POPULATION, HOUSEHOLDS, AND HOUSEHOLD SIZE PROJECTIONS*
Households
Household Size (PeoplelHousehold)
Population
8,039
2.30
18,520
POPULATION DEMOGRAPHICS**
Number of Persons by Age:
4 and under
5-9
10 - 14
15 - 19
20 - 24
25 - 34
35 - 44
45 - 54
55 - 59
60 - 64
65 - 74
75 - 84
85 and over
Total population
Total female population
Total male population
Persons
995
1,097
1,105
1,078
1,170
2,663
2,897
2,340
878
842
1,670
1,325
460
18,520
9,629
8,891
OCCUPATION INFORMATION***
Management, professional, and related occupations
Service occupations
Sales and office occupations
Farming, fishing and forestry occupations
Construction, maintenance, transportation and manufacturing occupations
INCOME INFORMATION****
Median income per capita
Median income per household
Median income per family
$21,368
$40,562
$50,610
*
Source: 2000 Census
Source: US Census Bureau, Profile of General Demographic Characteristics: 2000
Source: US Census Bureau, Profile of Occupation, Industry and Class of Worker: 2000
Source: US Census Bureau, Income and Poverty Status in 1999: 2000
**
***
****
206
Percent
5.37 %
5.92
5.97
5.82
6.32
14.38
15.64
12.63
4.74
4.55
9.02
7.15
2.48
100.00
51.99
48.01
28.00 %
16.10
31.30
0.20
24.40
IV. SINGLE AUDIT AND OTHER
REQUIRED REPORTS SECTION
207
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208
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON COMPLIANCE WITH MINNESOTA LEGAL COMPLIANCE
AUDIT GUIDE FOR LOCAL GOVERNMENTS
To the Honorable Mayor and
Members of the City Council
Columbia Heights, Minnesota
We have audited the basic financial statements of the City of Columbia Heights, Minnesota,
as of and for the year ended December 31, 2004, and have issued our report thereon dated
April 21, 2005.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America, and the provisions of the Minnesota Legal Compliance Audit
Guide for Local Government promulgated by the State Auditor pursuant to Minnesota
Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers six categories
of compliance to be tested: contracting and bidding, deposits and investments, conflicts of
interest, public indebtedness, claims and disbursements, and miscellaneous provisions. Our
study included all of the listed categories.
The results of our tests indicate that for the items tested, the City of Columbia Heights,
Minnesota complied with the material terms and conditions of applicable legal provisions,
except as described in this report.
This report is intended solely for the information and use of the City Council, management
and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
fi.c -r~ ~/ L/:1
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 21, 2005
4810 White Bear Parkway White Bear Lake, Minnesota 55110 6514267000 651 4265004 Fax
1303 South Frontage Road Suite 13 Hastings, Minn~sota 55033 651 4804990 651 4265004 Fax
www.hlbtr.com
HLB Tautges Redpath, Ltd. is a member of I!IIlnternational, a world-wide organization of accounting firms and business advisors.
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FINDING 2004-1
Criteria: Minnesota Statutes require the City to accept grants, donations and gifts by passing
a Council resolution. Minnesota Statute reads as follows:
465.03 Gifts to municipalities.
Any city, county, school district or town may accept a grant or devise of real or personal property and
maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor.
Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such
acceptance shall be by resolution of the governing body adopted by a two-thirds majority of its members,
expressing such terms in full.
Condition: The City accepts gifts without a formal Council resolution.
Cause: Unknown to the cause of the compliance issue.
Effect: The city is in noncompliance with this issue and is not meeting the requirements of
Minnesota Statute 465.03.
Recommendation: We recommend the City accepts grants, donations and gifts by passing a
Council resolution.
City Management Response: At present, the City is considering what options it has for
complying with M.S. 465.03 in a cost effective manner, given the variation in the timing,
materiality and nature of the various contributions it accepts.
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212
FINDING 2004-2
Criteria: Minnesota Statutes require the HRA's governing body to designate depositories.
Minnesota Statute 118A.02, subdivision 1 reads as follows:
118A.02 Depositories; investing: sales, proceeds, immunity.
Subdivision 1. Designation; delegation. (a) The governing body of each government entity shall
designate, as a depository of its funds, one or more financial institutions.
(b) The governing body may authorize the treasurer or chief financial officer to:
(1) designate depositories of the funds;
(2) make investments of funds under sections 118A 0 1 to 118A 06 or other applicable law; or
(3) both designate depositories and make investments as provided in this subdivision.
Condition: Depositories were not designated by the governing body.
Cause: Unknown to the cause of the compliance issue.
Effect: The HRA is in noncompliance with this issue and is not meeting the requirements of
Minnesota Statute 118A.02, subdivision 1.
Recommendation: We recommend the HRA ensure that they are following state statutes by
addressing new depositories.
City Management Response: The depository designation required under M.S. 118A.02 will
be placed on the agenda of an upcoming meeting of the Housing and Redevelopment
Authority.
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214
FINDING 2004-3
Criteria: Minnesota Statutes require that a governmental entity show prompt payment of all
bills, either by payment within the time period set by the terms of the contract or within the
standard payment period which is 35 days from receipt of goods or invoice (whichever is
later) for governing boards who meet at least once a month. For bills paid after this time
period, the City must calculate and pay interest as requested by law. Minnesota Statute
471.425, subdivisions 2 and 4 read as follows:
471.425 Prompt payment of local government bills.
Subd. 2. Payment required. A municipality must pay each vendor obligation according to the
terms of the contract or, ifno contract terms apply, within the standard payment period unless the
municipality in good faith disputes the obligation. Standard payment period is defined as follows:
(a) For municipalities who have governing boards which have regularly scheduled meetings at least
once a month, the standard payment period is defined as within 35 days of the date of receipt.
(b) For municipalities whose governing boards do not regularly meet at least once a month, the
standard payment period is defined as 45 days after receipt of the goods or services or the invoice for the
goods or services, whichever is later.
(c) For joint powers organizations organized under section 471.59, the standard payment period is
within 45 days of the date of receipt.
Subd. 4. Payment of interest on late payments required.
(a) Except otherwise provided in this section, a municipality shall calculate and pay interest to a
vendor if the municipality has not paid the obligation according to the terms of the contract or, if no
contract terms apply, within the standard payment period as defined in subdivision 2. The standard
payment period for a negotiated contract or agreement between a vendor and a municipality which requires
an audit by the municipality before acceptance and payment of the vendor's invoice shall not be begun until
the completion of the audit by the municipality.
(b) The rate of interest calculated and paid by the municipality on the outstanding balance of the
obligation not paid according to the terms of the contract or during the standard payment period shall be I-
1/2 percent per month or part of a month.
( c) No interest penalties may accrue against a purchaser who delays payment of a vendor obligation
due to a good faith dispute with the vendor regarding the fitness of the product or service, contract
compliance, or any defect, error or omission related thereto. If such delay undertaken by the municipality
is not in good faith, the vendor may recover costs and attorney's fees.
(d) The minimum monthly interest penalty payment that a municipality shall calculate and pay a
vendor for the unpaid balance for anyone overdue bill of $100 or more is $10. For unpaid balances of less
than $100, the municipality shall calculate and pay the actual interest penalty due the vendor.
Condition: The City did not pay certain invoices related to a development project.
Cause: City policy requires a signed contract to be received before payment of invoices.
For this development project, a signed contract was not received.
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216
Effect: The city is in noncompliance with Minnesota Statute 471.425, subdivisions 2 and 4.
Recommendation: We recommend the City implement procedures to communicate required
statutes.
City Management Response: The vendor obligation was paid within 30 days of the City
obtaining the signed contract required under City policy.
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218
FINDING 2004-4
Criteria: Minnesota Statutes require that a governmental entity not using an electronic time
recording system have the timekeeper, supervisor, or other officers or employees having
knowledge of the facts, signed a declaration indicating the facts recited on the payroll are
correct to the best of the declarant's information and belief. Minnesota Statute 412.271,
subdivision 2 reads as follows:
412.271 Disbursements.
Subd. 2. Claims, payment; electronic time recording. (a) Except for wages paid on an hourly or
daily basis, where a claim for money due on goods or services furnished can be itemized in the ordinary
course of business the person claiming payment, or the claimant's agent, shall prepare the claim in written
items and sign a declaration that the claim is just and correct and that no part of it has been paid; but the
council may in its discretion allow a claim prepared by the clerk prior to such declaration by the claimant,
if the declaration is made by an endorsement on the order-check by which the claim is paid as provided
below.
(b) Whenever work for which wages are to be paid on an hourly or daily basis is done by employees of
the city, the clerk shall keep a payroll giving the name of each employee and the number of hours or days
worked by each and the timekeeper, supervisor, or other officers or employee having knowledge of the
facts shall sign a declaration that the facts recited on the payroll are correct to the best of the declarant's
information and belief; and when any claim for wages listed on a payroll is paid, the employee shall sign a
declaration, which may be a part of the payroll, to the effect that the employee has received the wages and
done the work for which wages have been paid. The declarations relating to claims or payrolls shall be in
substantially the following form: "I declare under the penalties of perjury (here insert, if claimant: that
this claim is just and correct and no part of it has been paid; if timekeeper, supervisor, officer or employee
having knowledge of the facts; that to the best of my information and belief the items of this payroll are
correct; if employee who has been paid: that I have received the wages stated on this payroll opposite my
name and have done the work for which the wages were paid.)
Date
Signed
The effect of this declaration shall be the same as if subscribed and sworn to under oath.
( c) Notwithstanding the procedural requirements of paragraph (b), a city may use electronic time
recording systems if the governing body of the city adopts policies to ensure that the timekeeping and
payroll methods used are accurate and reliable.
Condition: The City did not have the payroll declaration signed for each pay period.
Cause: City staff was unaware of the Minnesota Statute requiring a signed declaration.
Effect: The City is in noncompliance with statutes of the State of Minnesota.
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220
Recommendation: We recommend the City implement procedures to fulfill required
statutes.
City Management Response: The City prospectively incorporated the timekeeper/supervisor
declaration from M.S. 412.271 subdivision 2(b) into its payroll documentation for hourly
wages in 2005.
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222
HLB
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
Columbia Heights, Minnesota
We have audited the financial statements of the governmental activities, the business type
activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota as of and for the year ended December 31, 2004, which
collectively comprise the City of Columbia Heights, Minnesota's basic financial statements
and have issued our report thereon dated April 21, 2005. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Columbia Heights,
Mirmesota's internal control over financial reporting in order to determine our auditing
procedures for the purpose of expressing our opinions on the financial statements and not to
provide an opinion on the internal control over financial reporting. However, we noted
certain matters involving the internal control over financial reporting and its operation that
we consider to be reportable conditions. Reportable conditions involve matters coming to
our attention relating to significant deficiencies in the design or operation of the internal
control over financial reporting that, in our judgment, could adversely affect the City of
Columbia Heights, Minnesota's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements. Reportable
conditions are described in the accompanying schedule of findings and questioned costs as
item 2004-1.
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. Our consideration of
the internal control over financial reporting would not necessarily disclose all matters in the
internal control that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses.
4810 White Bear Parkway White Bear Lake, Minnesota 55110
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033
651 426 7000 651 426 5004 Fax
651 4804990 651 4265004 Fax
www.hlbtr.com
HLB Tautges Redpath, Ltd. is a member of I!IIlnternational, a world-wide organization of accounting firms and business advisors.
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However, we believe that none of the reportable conditions described above is a material
weakness. We also noted other matters involving the internal control over financial
reporting, which we have reported to management of the City of ColumbiaJieights,
Minnesota in a separate letter dated April 21, 2005.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Columbia Heights,
Minnesota's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or .other matters
that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the City Council, management
and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
M-d ~ ~,tl:/
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 21, 2005
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Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and
Members of the City Council
Columbia Heights, Minnesota
Compliance
We have audited the compliance of the City of Columbia Heights, Minnesota with the types
of compliance requirements described in the U.S. Office of Management and Budget COMB)
Circular A-133 Compliance Supplement that are applicable to each of its major federal
programs for the year ended December 31, 2004. The City of Columbia Heights,
Minnesota's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs. Compliance with the
requirements of laws, regulations, contracts and grants applicable to each of its major federal
programs is the responsibility of the City of Columbia Heights, Minnesota's management.
Our responsibility is to express an opinion on the City of Columbia Heights, Minnesota's
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Those standards and OMB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City of Columbia Heights, Minnesota's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on the City of Columbia Heights, Minnesota's
compliance with those requirements.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 4267000 651 4265004 Fax
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 4804990 651 4265004 Fax
www.hlbtr.com
HLB Tautges Redpath, Ltd is a member of l1li International, a world-wide organization of accounting firms and business advisors.
227
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In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects,
with the requirements referred to above that are applicable to each of its major federal
programs for the year ended December 31, 2004. However, the results of our auditing
procedures disclosed instances of noncompliance with those requirements, which are
required to be reported in accordance with OMB Circular A-133 and which are described in
the accompanying schedule of findings and questioned costs as item 2004-5.
Internal Control Over Com pliance
The management of the City of Columbia Heights, Minnesota is responsible for establishing
and maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and performing
our audit, we considered the City of Columbia Heights, Minnesota's internal control over
compliance with requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance and to test and report on internal control over compliance in
accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncompliance with applicable
requirements of laws, regulations, contracts, and grants that would be material in relation to a
major federal program being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over compliance and its operation that we consider to be
material weaknesses.
We also noted other matters involving the internal controls and its operation that we have
reported to the management of the City of Columbia Heights, Minnesota, and the Columbia
Heights Economic Development Authority, in separate reports dated April 21, 2005.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Col umbia Heights, Minnesota as of and for the year ended December 31, 2004, and have
issued our report thereon dated April 21, 2005. Our audit was performed for the purpose of
forming opinions on the financial statements that collectively comprise the City of Columbia
Heights, Minnesota's basic financial statements taken as a whole. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by OMB Circular A-133 and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the
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230
basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of the City Council, management
and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
1It.a T~~, lIJ
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 21, 2005
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232
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2004
SECTION I - SUMMARY OF AUDIT RESULTS
1. The Independent Auditor's Report expresses an unqualified opinion on the basic
financial statements of the City of Columbia Heights, Minnesota.
2. There was one reportable condition disclosed during the audit of the financial
statements as reported in the Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditinz Standards. The above condition
was not determined to be a material weakness.
3. No instances of noncompliance material to the financial statements of the City of
Columbia Heights, Minnesota were disclosed during the audit.
4. One reportable condition relating to the audit of the major federal award programs is
reported in the Report on Compliance with Requirements Applicable to each Maior
Program and Internal Control over Compliance in Accordance with OMB Circular A-
133. The above condition was not determined to be a material weakness.
5. The auditor's report on compliance for the major federal award programs for the City
of Columbia Heights, Minnesota expresses an unqualified opinion.
6. Audit findings, if any, relative to the major federal award programs for the City of
Columbia Heights, Minnesota are reported in Section III of this Schedule.
7. Community Development Block Grant - Entitlement Grant - CFDA #14.218 was
tested as a major program.
8. The threshold for distinguishing Types A and B programs was $300,000.
9. The City of Columbia Heights, Minnesota was determined to be a low-risk auditee
for 2004.
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234
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2004
SECTION II - FINANCIAL STATEMENT FINDINGS
2004-1: Recreational Revenue Documentation
Condition: Certain documentation needs to be maintained in the City's files to substantiate
that proper procedures have been followed when recording recreational revenue. Currently,
documentation is not maintained that provides for verifying the completeness of recreation
revenue. We noted the City does not maintain an audit trail regarding recreational revenue.
Also, checks received by the Recreation Department are endorsed at the end of the day
rather than upon receipt.
Recommendation: As noted in 2001 and 2002, we suggest the City improve cash
receipting procedures which would include use of the cash register, endorsements of
checks upon receipt with a stamp, and independent verification of class rosters.
Corrective Action Plan: In 2003, the Recreation Department began implementing the use
of the cash register system. In 2005, the City needs to implement a system of independent
verification of class rosters.
SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
2004-5: Community Develoument Block Grant
Criteria: The Community Development Block Grant requires that the local government
entity check for debarred/suspended contractors by use of the government website.
Condition: Per inquiry and analysis, this procedure has not been performed by the EDA.
Cause: Per the Director of Community Development, a check for a valid state license is
made, but EDA staff were unaware of the website. The threshold for this requirement was
recently reduced from $100,000 to $25,000.
Effect: They could possibly be working with a debarred/suspended contractor and could be
out of compliance with rules to those CDBG federal funds.
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236
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31,2003
Recommendation: The EDA needs to have procedures in place to check for these
debarred/suspended contractors and show support for those procedures.
EDA Management Response: A procedure to document a search of the federal
debarred/suspended contactors list has been added to the Economic Development
Authority's contracting process beginning in 2005.
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238
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2004
Federal Fllllding Source/
Pass Through Agency/
Program Title
u.s. Department of Justice:
Direct:
Local Law Enforcement Block Grant
Bulletproof Vest Partnership Program
Passed-through State ofMN Department of Economic Security:
Juvenile Accountability Incentive Block Grant
u.s. Department of Housing and Urban Development:
Direct:
Operating Subsidy
Capital Funds Program (CFP)
Passed-through Anoka County:
Commllllity Development Block Grant - Entitlement Grant (CDBG)
u.s. Department of Transportation
Passed-through State ofMN Department of Public Safety:
ACE Nitecap
Passed-through City of Coon Rapids, Minnesota:
Safe and Sober
u.s. Department of Homeland Security - Federal Emergency Management Agency:
Direct:
Assistance to Firefighters Grant Program
Passed-through Anoka County:
Emergency Management Assistance Grant
Passed-through State ofMN Department of Public Safety:
Citizen Corps Grant Program
u.s. Department of Education:
Passed-through Columbia Heights Independent School District #13:
Children Families and Learning - 21 st Century Grant
u.s. Department of Health and Human Services:
Passed-through State ofMN Department of Health:
Armed and Alert Grant
Total Federal Expenditures
239
Federal
CFDA
Number
16.592
16.607
16.523
14.850
14.872
14.218
20.600
20.600
97.044
97.042
97.004
84.287
93.136
2004
Federal
Expenditures
$12,166
2,100
10,068
103,328
127,737
525,544
3,550
6,946
225,000
5,226
1,043
57,432
5,000
$1,085,140
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240
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2004
Notes to the schedule of expenditures of federal awards
Note 1. Basis of Presentation
The above schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia
Heights, Minnesota (including its component units) and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements ofOMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the basic financial statements.
Note 2. Subrecipients
During 2004, the City of Columbia Heights did not pass federal money to subrecipients.
Note 3. Reporting Entity
The City of Columbia Heights, Minnesota, for purposes ofthis schedule includes all funds of the primary government
as defined by GASB Statement No. 14, The Financial Reporting Entity. This schedule also includes the Housing and
Redevelopment Authority (HRA), and the Economic Development Authority (EDA) which are the sole component units of the City.
Note 4. Schedule of Statement and Certification of ActualModernization Costs:
Annual Contributions
FY 2002
MN 46P10550102
Amendment # 16
FY 2003
MN 46PI0550103
Amendment # 17
1. The actual modernization costs are as follows:
Funds approved
Fund expended
Excess offunds advanced (expended)
$124,349 $102,313
124,349
$0 $102,313
$124,349 $50,695
61,141
63,208 64,529
$0 ($13,834)
Funds advanced - HUD Grants
Funds expended:
In prior years
In current year
Excess of funds advanced (expended)
2. The distribution of costs by project as shown on the Final Statement of Development Cost budget, accompanying the Actual Development cost Certificate
submitted to HUD for approval, is in agreement with the City's records.
3. All modernization costs have been paid and all related liabilities have been discharged through payment.
241
FY 2004
MN 46P10550103
Amendment # 17
$118,489
$118,489
$0
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242
Tautges Redpath, Ltd.
C e rt i fie d Pub lie Ace 0 U n tan t san d Con sui tan t s
REPORT ON SUPPLEMENTARY INFORMATION -
FINANCIAL DATA SCHEDULE
To the Honorable Mayor and
Members of the City Council
Columbia Heights, Minnesota
We have audited the basic financial statements of the City of Columbia Heights, Minnesota,
as of and for the year ended December 31,2004, and have issued our report thereon dated
April 21, 2005. Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying Financial Data Schedule is
presented for purposes of additional analysis as required by the U.S. Department of Housing
and Urban Development and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material respects, in relation to
the basic financial statements taken as a whole.
This report is intended solely for the information and use of the City Council, management
and federal awarding agencies and pass-through entities and is not intended to be and should
not be used by anyone other than those specified parties.
lit. 4 ~ ft" ~;' ,/.z
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
April 21, 2005
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 4267000 651 426 5004 Fax
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 6514804990 651 4265004 Fax
www.hlbtr.com
HLB Tautges Redpath, Ltd. is a member of I!IIlnternational, a world-wide organization of accounting firms and business advisors.
243
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE
As of and For The Year Ended December 31, 2004
Public Housing Public Housing
Operating Capital Fund
Line Subsidy Program
Item Account Description 14.850 14.872
Current Assets:
Current assets:
III Cash - umestricted $587,867 $2,600
100 Total cash 587,867 2,600
Accounts and notes receivable:
122 Accounts receivable - HUD other projects 13,834
125 Accounts receivable - miscellaneous 217
126 Accounts receivable - tenants - dwelling rents 1,670
129 Accrued interest receivable 3,498
120 Total receivables, net of allowance 5,385 13,834
144 Interprogram - due from
150 Total current assets 593,252 16,434
Noncurrent assets:
Capital assets:
161 Land 177,375
162 Buildings 2,4 79 ,734
163 Furniture, equipment and machinery - dwellings 283,684
164 Furniture, equipment and machinery - administration 5,144
160 Total capital assets 2,945,937 0
166 Less: accumulated depreciation (1,723,212)
Total capital assets, net of accumulated depreciation 1,222,725 0
180 Total noncurrent assets 1,222,725 0
190 Total assets 1,815,977 16,434
Liabilities:
Current liabilities:
312 Accounts payable <= 90days $19,333 $16,434
321 Accrued wages/payroll taxes payable
333 Accounts payable - other governments 19,054
341 Tenant security deposits 13,330
347 Interprogram - due to 33,705
310 Total current liabilities 85,422 16,434
350 Total noncurrent liabilities 0 0
300 Total liabilities 85,422 16,434
Net Assets:
508.1 Investment in capital assets, net of related debt 1,222,725
512.1 Umestricted 507,830
513 Total net assets $1,730,555 $0
245
CITY OF COLUMBIA HEIGHTS, MINNESOTA
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE
As of and For The Year Ended December 31, 2004
Public Housing Public Housing
Operating Capital Fund
Line Subsidy Program
Item Account Description 14.850 14.872
Revenue:
703 Net tenant rental revenue $283,173 $ -
704 Tenant revenue - other 9,335
706 HUD PHA grants 103,328 127,737
711 Investment income - unrestricted 15,887
700 Total revenue 411,723 127,737
Expenses:
911 Administrative salaries 17,064
912 Auditing fees 1,438
913 Outside management fees 112,873
916 Other operating - administrative 6,627
924 Tenant services - other 46
931 Water 10,795
932 Electricity 34,584
933 Gas 41,088
938 Other utilities expense 13,170
942 Ordinary maintenance and operations 51,186
961 Insurance premiums 29,022
962 Other general expenses 4,837
963 Payments in lieu of taxes 19,054
969 Total operating expenses 341 ,784 0
974 Depreciation 96,818
900 Total expenses 438,602 0
1001 Operating transfers in 127,737
1002 Operating transfers out (127,737)
1010 Total other financing sources (uses) 127,737 (127,737)
1000 Excess (deficiency) of total revenue over (under) total expenses 100,858 0
Memo account information:
1103 Beginning equity 1,339,725
1104 Prior period adjustments, equity transfers and correction of errors 289,972 N/A
1113 Maximum annual contributions commitment (per ACC) N/A N/A
1115 Contingency reserve, ACC program reserve N/A N/A
1116 Total annual contributions available N/A N/A
1120 Unit months available 1,212 N/A
1121 Number of unit months leased 1,204 N/A
Note 1: Prior Period Adjustment to U.S. Department of Housing and Urban Development Financial Data Schedule:
Land
Buildings
Furniture, equipment and machinery - dwellings
Accumulated depreciation
Financial Data Schedule line 1104, Prior period adjustment - correction of an error
$48,675
(1,795,568)
(158,522)
2,195,387
$289,972
246