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Home My WebLink About2007 EDA AMLTautges Redpath, Ltd, Certified Public Accountants and Consultants To the Board of Commissioners Columbia Heights Economic Development Authority Columbia Heights, Minnesota 5542 ~ ha conjunction with our audit of the City's financial statements, we have prepared this report to assist the EDA board in analyzing the financial activity of the EDA. Eeonomac Development Authority The EDA was established in January 199b. The EDA is a separate legal entity from the City, however, because the Mayor and City Councilmrembers comprise the majority of the EDA's governing board, the EDA is reported in the City's financial statements using the blended method. Additionally, the EDA assumed oversight responsibility for the HRA. The EDA and HRA financial statements are included as Special Revenue Funds of the City's CAFR. 4810 UUhite Bear Parkway 1Nhite Bear Lake, Minnesota 55110 1651 426 7000 651 4Z6 5004 Fax I www.hlbtr.com HLB Tautges Redpath, lld, is a member of . International, a world-wide organization of accounting firms and business advisors. ~ Equaf opportunity Employer Condensed balance sheets for the HRA and EDA fox 2007 and Z44b are as follov~s: EDA FUNDS HRA FUNDS Business EDA Lease Parkview Parkview Revolving EDA Revenue Villa Villa Rental 20x7 2006 Loan Admin. Bonds 2aa7B North South Housing Total Total Assets Cash and investments $37x,336 $48,899 $ - $553,596 $306,870 $40,688 $1,32x,388 $1,274,841 Other assets 94,521 988,828 5,x4a,0a0 187,149 16,591 - 6,337,089 1,1 I8,619 Total assets $464,857 $1,047,727 $5,a40,aaa $744,745 $323,461 $4x,688 $7,657,478 $2,393,46a Liabilities and Fnnd Balance ~ Liabilities - in total $ - $1,411,358 $ - $91,239 $22,633 $ - $1,525,230 $1,533,555 Fnnd balance 464,857 X363,631 } 5,x40,000 649,5x6 3ax,828 40,688 6,132,248 859,905 Total liabilities and fund balance $464,857 $1,x47,727 $5,040,x00 $74x,745 $323,461 $40,688 $7,657,478 $2,393,460 Audit Management Letter Business Loan Revolving Fund (299) A comparison of the financial activity of this fund for 2005 through 2007 is as follows: Revenues; Feeslprogram revenue investment income Total revenues $3, l 92 $526 $ - ~ 2,9so 70,583 Expenditures Revenues over expenditures Fund balance -January l Fund balance -December 31 l 0,769 ~ 3,SOb 70,583 369,999 380,7b8 394,274 $380,7b8 $394,274 $4b4,857 This fund accounts for the Business Revolving Loan Fund (BRL.F)_ Also, prior to 2004 this fund accounted for HRA property tax levy. Beginning in 2004, the HRA t~ levy is accounted for in Fund 204 - EDA Administrative Fund. As shown above, this fund has a fund balance of $464,857. A portion of the fund balance ($306,426) relates to a loan to ACAAP. In November 2007, the City council adopted Resolution 2007-214 establishing a new fund (EDA Housing Maintenance Fund). The Resolution authorized the transfer of $306,426 from the Revolving Fund to this new fund to be used for The Housing Maintenance Program. Audit Management Letter A history of the fund balance is as follows: Increase Year Amount (Decrease) 1994 $2bS,307 $2b8,307 1995 53,521 (214,78b) 199b (15,447) (b8,9bS) I 997 30,109 45,55b 1998 37,907 7,798 1999 442,374 3b4,4b7 2000 47$,7b0 7b,386 2041 532,293 53,533 2002 328,228 (204,Db5) 2003 353,255 25,027 2004 3b9,999 1 b,744 2005 38a,7b8 10,7b9 2006 394,274 l 3,50b 2007 464,557 70,583 Audit Management Letter Anoka County CDBG Fund X202} Financial activity of this fund for 2005 thxough 2007 is as follows: $ - $ - $21,240 - 64,004 - - - 115,000 31,986 - - 247,909 - 160,000 l , l 36 l ,000 - 2~1,031 6s,ooo 296,240 2,3os - 27,000 291,986 64,000 21,240 X13,263} 1,000 0 - 13,264 - 16,763 - 0 30,027 0 ~ 13,263} 31,027 4 X29,636} X42,899} (11,872} x$42,899} ($11,872} x$11,872) Revenues: Federal grant: 37th and Central Avenue Demo 40th Avenue improvements Demo Apache Theatre Burger King demolition Industrial redevelopment Other Total revenues Expenditures: Other services and charges Capital outlay Total expenditures Revenues over sunder}expenditures ether financing sources (uses}: Transfer from Municipal State Aid Fund Sale of capital assets Total other financing sources fuses} Net change in fund balance Fund balance deficit) -January 1 Fund balance ~de~cit} -December 3 ] Audit Management Letter Parkview Villa North ~PVVN) X203) The financial activity of this fund far 2~~5 through 2~~7 is as follows; 2005 2ao6 2DO7 Revenues: Federal grant: Operating subsidy $121,270 $157,937 $159,624 Capital grant 104,237 105,802 185,287 Rents 300,778 301,897 314,558 Investment income 8,495 15,740 31,870 ether 3,505 4,249 8,932 Total revenues 538,285 585,625 7D0,271 Expenditures: Personal services 22,288 22,533 22,463 Supplies 27,865 46,768 70,797 ether services and charges: Management services 114,674 l 35,552 140,160 Utilities l 21,821 l 35,235 130,322 Repair and maintenance 7D,572 37,965 48,220 PILOT 17,628 16,437 18,222 Insurance 22,966 14,3D4 14,233 All other 47,987 37,935 16,831 Capital outlay 86,200 115,3 l 1 127,2 l b Total expenditures 532,001 562,040 588,464 ~ Revenues over expenditures 6,284 23,585 1 l 1,807 Fund balance - January 1 507,830 514,114 537,b99 Fund balance -December 31 $514, l 14 $537,699 $649,506 Audit Management Letter EDA_Administration X204} This fund was established in 1996 to account for the financial activity associated with business development and community redevelopment projects in the City. A summary of the financial activity of this fund for 2005 through 2407 is as follows: Revenues: Taxes Market value homestead credit lnvestmer~t income Total revenues Expenditures: Other: Other services and charges Capital outlay Total expenditures Revenues over expenditures Other f nancing sources (uses}: Transfers out: Community Development (201 ~ Net change in fund balance Fund balance (deficit) - January l Fund balance (deficit} -December 31 $217,154 $223,480 $275,740 l 4,750 l 3,113 1 l ,695 790 961 - 232,694 237,554 287,435 12b - - 411,887 - - 412,013 0 0 (179,3 ~ 9} 237,554 287,435 (223,791 } X246,331 } (317,228} (403,110) (8,777} (29,793) 78,049 (325,061 } (333,838} ($325,061 } ($333,838} ($363,b31 } In accordance with accounting standards, the EDA reports land held for resale on its balance sheet. Audit Management Letter Parkview Villa South X213} The financial activity of this fund for 2005 through 2007 is as follows: zoos zoo6 zoo? Revenues: Rents $2.33,831 $2bb,lz8 $283,229 Investment income 2,359 5T120 11,930 ether 2,431 3,343 4,523 Total revenues 238,b21 274,591 299,b82 Expenditures: Personal services 18,710 11,480 11,4$0 Supplies 7,785 11,198 20,088 Other services and charges: Management services 57,301 70,491 73,052 Utilities 43,544 48,934 49,531 Repair and maintenance 32,405 21.048 27,78b P1LOT 18,488 21,061 804 Insurance 5,$39 7,045 7,1 lb Capital outlay - - 25,700 All other 37,284 5,139 4,379 Total expenditures 221,35b 19b,39b 219,93b Revenues over expenditures 17,2b5 78,195 79,746 Fund balance -January 1 125,b22 142,887 221,082 Fund balance -December 31 5142,887 $221,082 $30D,828 During 200, the EDA approved the establishment of the PVVS Capital Improvement Fund. This fund transferred $700,000 to the PVVS Capital Improvement Fund in 2001. Audit Management Letter Rentat Housin 235 This fund was established in ~ 996 to account for rental properties. A summary of the 2005 through 2007 financial activity is as follows: 2005 2006 2007 Revenues: investment income $988 $1,410 $ - Qther - - - Total revenues 988 1,410 0 Expenditures: ether: Other services and charges: Other services and charges 15,000 - Revenues over (under} expenditures (14,o 12} 1,410 - Fund balance -January 1 53,290 39,278 40,b88 Fund balance -December 31 $39,278 $40,88 $40,688 ~~~ T~~~~~ ~ ~~ HLB TAUTGES REDPATH, LTD. White Bear Lake, Minnesota June 19, 2008 Audit Management Letter