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HomeMy WebLinkAboutJuly 30, 2007 Work SessionCITY OF C®LUMBIA HEIGHTS 590 40'h Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (7C,3) 706-3E92 Visit our website at: ao~wtU~.cr.coLtraaabia-Arei~hts.:atn.aas ADMINISTRATION NOTICE OF CITY COUNCIL MEETING to be held in the CITE' OF C OL UMBIA HEIGHTS as follows: Meeting of: COLUMBIA HEIGHTS CITY COUNCIL Date of Meeting: JULY 30, 2007 Time of Meeting: 7:00 P.M. Location of Meeting: CONFERENCE ROOM 1 Purpose of Meeting: WORK SESSION AGENDA 1. Review of comprehensive annual report and audit findings 4iaeor l,'arti~L. Peterson Coxncitmemhers l?~Jberi.4. W4lliams Brtu:e Nertvruckt 7ummtera l7ichm Brnee f~eL-enf~czrg Citq M14a~aa<eer 4t'idter (f. !"eh.v~i The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids far handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at 706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) 2'?Of Audit R~vi~: . 9 _ ,~ ~ { ~I -. David J. Mol, Partner Member of HOB Intemationai ~ ! ®J ~~"°'~'g"' '~~"~'~'~ ~" Opinion on financial statements Report on Compliance with Minnesota Statutes Report on Internal Control Management ~ Audit Committee Letter Member of HI.B lntemational 2 ^~ ~- *j °?"utg ~i~s~lth, L..tc! _ ~ ~ ` ~ f ,~ ~:, ~', i` ~; ;; Member of HLi3 International «a - , , it9 ~ ~. w , a, <<..#, 1 ~ ~ ~~ .. 1 r a C.~ertiticatc ~~` Achi~~ernent fir xeet]e~c~ ~~ Firl~nci~l ~~c~~tin 1'i C'xe:Yt2csl tti ~'~~~! +~~` ~'o~u~nb~~ H~i~h~~ I~'~i~st~t~ ' ~~i,l ,r Y'l:a+~x 1~}ti"af %'tt' 'i 11111 t3 ~. t r/~,rh,,r ~ar•f} firs {~}«: Fitl;; ` t'ru Fn,k~' ' 4F~~, stifp,:Maid?rita4ar,IratF}~#{'4.1 fix, it; e, IFV }~r1,dRe:tlr~ rs;srtnt~ #• ({r,-gaeetn N,'rta.-t~,*ae.a ~t aae^r! ita M'r wi'r;q c~,,«,--:« - - .1,i:.s'15islS.`T lta },'11titj K!/h}raj «'.tli:'ei {:' ' ~rrr~rrpsw is !slat ,,a~) }vA+I~. Crt:(T,u~rt :,,=, tt:44.~)f a„rl.orn nt.r•x~ c,arBjrtt~tnfic aara~t{iraz«w~~ n.ir'te.s l;'.~,('~r! rafia•.e rtr.~ Irs>tw^;s ' - •sass}lrifis :r :awie`rt*t Pt ~v.!,rf,sal tq; aro1 sa,I t; #aI rc~}*%aalr~. - ~ fig.,.;.., 'c ~ - - ~ ~~t.Y - °~...xs.bl.. ~rd~i ~~.^y !! Gity has received this award every year since 1990. This award demonstrates the commitment ofi City management to produce a high quality fiinancial report . Member ofHLBIn#emational ~ ~ T'arraea.at+,~ IFi~e•t ~tci_ Member of HLB intemationai '~"~ma.ate~ R+ie,~dpa~th, 1Lt_ ~w - ~ 4 u~ Three Internal Control Deficiencies noted - Documentation of internal control - Recreation avenue documentation - ime reporting of salaried employees Member of H<_B International ~ ! ~! ~J "~"a„utt~g R.~cL~p~a°~h„ Lt _ ~ 4 ~ '; Governmental Business-type Activities Activities Expenses $12,869,000 $11,131,000 Less charges for services (2,693,000) (11,596,000} Less operating grants and contributions (759,000) (48,000} Less capital grants and contributions ~ 4,774,000 {23,000) Net expenses funded by property taxes and other sourc (4,643,000) 536,000 Property taxes 5,954,000 - Tax Increment 1,086,000 - Unrestricted grants 1,679,000 - Investment income 706,000 182,000 Other 16,000 - Transfers 888,000 (888,000) Total general revenues 10,329,000 (706,000} Increase in net assets $5,686,000 .~: {$170,000) Net assets as of December 31, 2006: Invested in capital assets, net of related debt $18,043,000 $5,760,000 Restricted 2,640,000 458,000 Unrestricted 22,613,000 7,297,000 Total $43,296,000 $13,515,000 Member of NLB International 'Ycatg Rc~e~p~~th„ L#d_ ~a~a~ ~ 8ff ~ { ~ ~ ~ See attached schedule Member of NLB Intema#lonai ~ ~ * ~, ~'"~"#~' '~"~~'"~~"~~"' L'"~" Favorable General Fund budget variances: 2006 Favorable Budget Budget Actual Variance $7,972,000 $7,885,000 ($87,000) 8,383,000 8,020,000 363,000 (411,000) (135,000) 276,000 470,000 470,000 - Revenues Expenditures Revenues over (under) e>:penditures Transfers in Transfer out Net increase in fund balance Fund balance -January 1 Fund balance -December 31 (85,000) (89,000) (4,000) (26,000) 246,000 272,000 3,350,000 $3,596,000 Member of HOB international ~~ T~eutg Ft~ci~-~~ytt•r. ~t_ ~. '. City policy is to maintain 45% of ensuing years budget Fund Balance Comnonent Reserved for prepayments Designated for working capital Undesignated Total fund balance -December 31 $35,323 $10,484 3,560,525 3,339,644 $3,595,848 $3,350,128 2007 budgeted expenditures $8,685,591 Reserve requirement percentage x 45% Reserve requirement 3,908,516 Balance available 3,560,525 Amount of fund balance under reserve requirement $347,991 ® T"a.ait +~p~~t.. Lit Member of HLB In#emational 1 ~ i i. a~ ~ ~ ~' xa,... '" W', k ,. , g.. 7, k qg, City policy is to maintain 45% of ensuing years budget December 31, 2006 2005 Member of HL.B International Designated for working capital Reserved for prepayments Total $14,677 $2,972 3,359 2,983 $18,036 $5,955 $682,060 2007 budgeted expenditures x 45°% Reserve requirement percentage 30b,92"l Reserve requirement 200,00() Balance available in Capital Equipment Replacement Fund 14,677_ Balance available in Library Fund $92,250 Amount of fund balance under reserve requirement ~~ "i"a.atg~c Repith~ L.,t ,. ~U ter F~~r7~! __- $2,200,000 $2,300,000 $2,100,000 $2,200,000 Water Utiliity Fund $z,ooo,ooo $z,100,000 ~ oooRevenue and Expenses 00o $2 $1,900,000 , , $1.800,000 $1,900,000 $ ] ,700,000 $1,800,000 $1.600,000 $1,700,000 $1,500,000 $1,600,000 $ ] ,400,000 $ ] ,500,000 $1,400,000 $1,300,000 $1,300,000 ~ Transfer to Debt Sen~ice $1.200,000 - $1,200,000 p Water Purchases $ 1, l oa,ooo $1,100,000 Other Operating Expenses $ t .000,000 $1,000,000 ~-Operating Revenue $900,000 ~,_. ,. - $900,000 $800,000 ;... __ $800,000 $700,000 - ~-~-~ $700,000 $600,000 $600,000 $500,000 - $500,000 $400,000 - $400,000 $300,000 $300,000 $200,000 - $200,000 $100,000 ~ __ ~ ~ $100,000 _...._...~_ ._ _.__._y.. 0 $0 $ 2002 2003 2004 2005 2006 Member a# H~t3 intematic>nai 13 i ' k ~, ~ ~ ? ~ ~~ $i.6oo,aoo ,~- $ l,~oa,ooa $1,200,000 $ ~ .ooo,ooa °° $800,000 $600,000 $400,000 $2oo,ooc $c ewer Utility Fund Revenue and Expenses ~ Transfer to Debt Service MCES Other Operating Expenses -!-Operating Revenue Member of HLB International .~ ~ ~ •, aat~ Re~dp~rt Ltd _ 2002 2003 2004 2005 2006 A n ~ , , ' ~! r ~ i $ l soo ooo , , 40 $1 000 - - $ I soo,ooa R f U ili , Q $1 300 000 - ! $1,400,000 e use t ty , , ;_ $1,300,000 $1 200 000 -- -at---- j , , * $1 100 000 - I -; $1,200,000 , , $1 000 000 -- -- $1,100,000 - 000 0 , , $400A00 ~- $1, , 00 $900 00 $800 000 - , 0 $800 000 Operating Expenses ~-O i , $700 000 -- , perat ng Revenue 00 0 , $600 000 - $7 , 00 $600 000 , 500 000 -, , , $ $4Q0 000 - $500,000 400 00 , $300 000 - $ ,0 --' $300 000 , $200 000 , -- $200 000 , , $100,000 - - ~_~~ ~ ~ _____: - -~ $100,000 $0 -- 2002 2003 __ 2004 2006 2006 $0 Member of HLB International 15 $saa,ooa - $4sa,aoa - $400,000 - $350,000 - $300,000 - $2s0,a00 -- $zoa,ooo - $tsa,ooo $ 106,000 -~ $so,ooa - $o '- 2001 2002 2003 2004 200s 2006 - $soo,ooo Storm Sewer -- $4s0,000 -~ $400,000 - $3s0,000 -~ $300,000 Transfers to Debt Service ® Operating Expenses - $250,000 '~- Operating Revenue - $200,000 -- $1 s0,000 -- $100,000 - $so,ooo $o Member of Ht_B Intemabonal ~~ T~ea.et~+ ReE~dp~r't17~ 1_'t_ -~ ~~~ Top Valu _ Top Valu 1I Heights Liquor Amount Percent Amount Percent Amount Percent 2006 Total 2005 Total Amount Percent Amount Percent Operating revenues $3,047,308 100.00% $2,466,375 100.00% $1,032,808 100.00% $6,546,491 100.00% $6,713,932 100.00% Cost of goods sold 2,353,576 77.23% 1,915,671 77.67% 770,071 74.56% 5,039,318 76.98% 5,210,861 _ 77.61 Gross margin 693,732 22.77% 550,704 22.33% 262,737 25.44% 1,507,]73 23.02% 1,503,071 22.39% Other operating expenses 631,632 20.73% 457,164 18.54% 216,225 20.94% 1,305,021 19.93% 1,303,000 _ 19.41% Net income from operations $62,100 2.04% $93,540 3.79% $46,512 4.50% $202,152 3.09% $200,071 2.98% T following comments relate to the above table: - sales decreased by $167,000 - Gross margin percent increased from 22.39°/® to 23.02% which resulted in increasing gross margin by ~~,~~~~° -- Net income from operations increased approximately $2,000 from 2005 to 2006. Member of Nt_B intemationai ~ 7 ~~ ~ ~ Accounting standards - GASB 44 Statistical Section - GASB 45 Other Post Employment Benefits Member of HLB In#ema#ional 18 "rt..t~,.~~ Fie,~e+cl~.tr.. l~t City of Columbia Heights, Minnesota Summary Financial Activity For the Year Ended December 31, 2006 Fund Revenue and Other Sources Expenditure<_ and Other Uses Interfund Transfers Net) Increase it Fund Balance, Net Assets Fund Balance, Net Assets 12/31/06 Cash Balance 12/31/06 CAFR p no. 1 General $7,885,074 $8,020,337 $380,983 $245,720 $3,595,848 $3,261,635 88 z Special Revenue: 3 Communit Develo ment Furn 478,739 488,507 32,738 22,970 159,706 171,262 112 a Cable Televisior 151,781 12,141 97,967 41,673 93,425 53,984 113 5 Library ~ 655,665 633,736 (9,848) 12,081 18,036 38,779 114 s D.A.R.E Pro ram 1,703 4,838 9,000 5,865 37,250 37,250 115 7 Special Projects 57,286 63,934 - (6,648} 77,556 98,124 116 s C.H.A.S.E 1,934 - - 1,934 56,619 56,139 117 s Twent -First Centu Gran 50,953 46,535 - 4,418 23,070 21,959 118 1o Confiscated Propert 3,890 5,064 - 1,174 5,302 5,302 119 11 Local Law Enforcement Block Gran - 56 - (56} - - 120 12 Police Grants -Other - - - - - - 121 13 Recreation Contributed Pro ect: 45,876 111,810 - (65,934 38,517 57,617 122 1a Contributed Proecte 47,079 45,508 1,000 571 36,368 36,650 123 15 Anoka County CDBG 81,763 64,000 13,264 31,027 (11,872) - 44 16 Flex Benefi 9,613 2,652 25,000) {18,039 33,454 37,394 124 17 Housin and Redevelopment Authority 1s Parkview Villa Nortl 585,625 562,040 - 23,585 537,699 553,086 127 1s Parkview Villa Souti 274,591 196,396 - 78,195 221,082 231,427 128 20 Rental Housinc 1,410 - - 1,410 40,688 40,338 129 21 EDA: 22 Economic Development Authority Admi 237,554 - (246,331) (8,777} (333,838) 79,999 44 23 Buisness Revolving Loan Funr 13,506 - - 13,506 394,274 369,991 131 3o Debt Service: 31 Sheffield TIF Redevelopmen 74,425 21,942 - 52,483 340,544 44,525 140 32 Tax Increment Bond: 851,413 22,347 645,975 183,091 193,306 189,208 140 33 Capital Appreciation Bonds of 199r - - (7,638) 7,638 - - 139 34 Multi-Use Redevelopment Plai 24,957 4,500 - 20,457 938 966 140 35 Tax Increment Refundin Bonds of 2004/ 3,110 645,906 653,613 10,817 20,092 19,332 139 36 G.O. Improvement 1999E 14,990 105,856 29,688 61,178 454,869 451,209 139 37 G.O. Improvement/Revenue 20031 12,510 129,078 280,525 (397,093 93,528 90,468 139 38 TIF District #2 1,201 675 - 526 947 - 140 3s TIF Medtronic 133,623 99,934 - 33,689 293,746 340,809 141 ao TIF Scattered Sitc 45,091 2,382 - 42,709 91,559 89,659 141 at T!F Transitiar. Block 47.380 44,403 - 2,977 16,751 34,829 141 a2 TIF Central AvenuE 11,030 - - 11,030 59,780 59,294 141 a3 TIF Nuset Park 163 74,179 - (74,016) (74,016) 163 141 as Capital Pro"ect: a5 MSA State Aid Street 515,221 585,425 (28,264 (98,468 (194,532 - 44 46 Community Center Capital Buildin Fun 140,210 26,502 3,900,000 4,013.708 4,013,708 3,980,105 44 a7 Capital Improvements General Government Buildinc 32,470 675,982 (1.710,002; (2.353,514} 688,290 789,007 146 48 Capital Equipment Replacement General Governme 190,040 114,148 50,000 125.892 4,958,357 4,930,794 44 Capita! Improvc,^;ents P!R Fun: 4,759,093 3,160,932 360,352 1 958,511 1,n07,g8n 858,744 44 5o Capitallmprovemen 785 (445} (90,000) (88,770} 644,031 59,536 146 51 Downtown Parkin Maintenano 8,580 34,571 - (25,991 165,601 163,501 146 52 Capital Sheffield Redevelopmer 32,080 32,359 - 279 912,213 904,373 146 53 Capital Improvement Park: 163,698 565 {450.000) (286.867) 725,700 720,330 146 sa Capital Improvement PVV: 940 - - 940 27,035 26,805 146 ss Capital Improvement Developmer 876,095 945,944 208,173 138,324 1,726,365 839,457 44 56 Infrastructure Replacemen 7,700 6,835 (57,384 (56,519) 141,137 139,257 146 57 Capital Equipment Firc 62.043 63,863 - (1,820} 274,000 271,660 146 58 Capital Equipment Cable T\ 2,680 - (250,000) (247,320) 77,011 76,361 146 5s Capital Buildin Librar - - - - 200,000 200,000 146 so Police Computer Equipmen 190 7,654 - (7,464) 3,070 3,020 146 s1 Enterprise: s2 Water 2.186,770 2.002,551 (112,830) 71,389 2,875.221 359,725 151 s3 Sewer 1.463,815 1,366,569 (112,830) (15.584) 5,286,324 1,545.765 154 s4 Refuse 1,320,472 1,106,642 (184.858) 28,972 485,490 244,795 157 65 Storm Sewer 274,717 190,502 - 84,215 754,832 343,987 160 66 Liquor 6.581,909 6,344,959 (712.361) (475.411) 2,863,996 1.459.078 163 s7 Internal Service: sa Central Garage 531,060 419,321 (114.998; (3,259) 463,724 388,871 167 ss Data Processinc 24.080 254,763 235,000 4,317 681,287 669,469 167 7o Insurance 500,544 367,899 (735.000) (602.355) 625,691 582,150 167 71 Compensated Absenr;e~ 24,689 440 - 24,249 53,962 737,428 167 72 Total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³FOHDQ´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