HomeMy WebLinkAbout2007 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2007
Finance Department
William J. Elrite, Finance Director
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
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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 1 36
Statement of Activities Statement 2 3 8
Fund Financial Statements:
Balance Sheet -Governmental Funds Statement 3 40
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 4 42
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 45
Statement of Net Assets -Proprietary Funds Statement 6 46
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds Statement 7 48
Statement of Cash Flows -Proprietary Funds Statement 8 50
Statement of Fiduciary Net Assets -Fiduciary Funds Statement 9 54
Notes to Financial Statements 55
Required Supplementary Information:
Budgetary Comparison Schedule -General Fund Statement 10 86
Budgetary Comparison Schedule -Economic Development Authority Administration Statement 11 88
Budgetary Comparison Schedule -Note to RSI 89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet -Nonmajor Governmental Funds Statement 12 96
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
NonmajorGovernmental Funds Statement 13 97
Subcombining Balance Sheet -Nonmajor Special Revenue Funds Statement 14 lol
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Special Revenue Funds Statement 15 105
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual -Community Development Fund Statement 16 108
Actual -Anoka County CDBG Fund Statement 17 109
Budget and Actual -Cable Television Fund Statement 18 110
Budget and Actual -Library Fund Statement 19 111
Actual -Special Projects Statement 20 112
Actual - C.H.A.S.E. Statement 21 113
Actual -After-School Programs Statement 22 114
Actual -Confiscated Property Statement 23 115
Budget and Actual - D.A.R.E. Program Statement 24 116
Actual -Police Grants -Other Statement 25 117
Actual -Recreation Contributed Projects Statement 26 118
Actual -Contributed Projects -Other Statement 27 119
Actual -Flex Benefit Fund Statement 28 120
Housing and Redevelopment Authority (Component Unit):
Combining Balance Sheet Statement 29 121
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance Statement 30 122
Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual:
Parkview Villa North Statement 31 123
Parkview Villa South Statement 32 124
Fund Balance -Actual:
Rental Housing Statement 3 3 125
Economic Development Authority (Component Unit):
Business Revolving Loan Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance Statement 34 126
Subcombining Balance Sheet -Nonmajor Debt Service Funds Statement 35 129
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Debt Service Funds Statement 36 133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Subcombining Balance Sheet -Nonmajor Capital Project Funds Statement 37 138
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Capital Project Funds Statement 38 140
Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Assets Statement 39 144
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 40 145
Subcombining Schedule of Cash Flows Statement 41 146
Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 42 147
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 43 148
Subcombining Schedule of Cash Flows Statement 44 149
Refuse Utility Fund:
Subcombining Schedule of Net Assets Statement 45 150
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 46 151
Subcombining Schedule of Cash Flows Statement 47 152
Storm Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 48 153
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 49 154
Subcombining Schedule of Cash Flows Statement 50 155
Liquor Fund:
Subcombining Schedule of Net Assets Statement 51 157
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 52 158
Subcombining Schedule of Cash Flows Statement 53 160
Internal Service Funds:
Combining Statement of Net Assets Statement 54 164
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets Statement 55 165
Combining Statement of Cash Flows Statement 56 166
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Central Garage Fund:
Subcombining Schedule of Net Assets Statement 57 167
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 58 168
Subcombining Schedule of Cash Flows Statement 59 169
Information Systems Fund:
Subcombining Schedule of Net Assets Statement 60 170
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 61 171
Subcombining Schedule of Cash Flows Statement 62 172
Insurance Fund:
Subcombining Schedule of Net Assets Statement 63 173
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 64 174
Subcombining Schedule of Cash Flows Statement 65 175
Compensated Absences Fund:
Subcombining Schedule of Net Assets Statement 66 176
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 67 177
Subcombining Schedule of Cash Flows Statement 68 178
Combining Statement of Changes in Assets and Liabilities -Agency Funds Statement 69 180
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component Table 1 183
Changes in Net Assets Table 2 184
Fund Balances -Governmental Funds Table 3 186
Changes in Fund Balances -Governmental Funds Table 4 188
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 192
Direct and Overlapping Property Tax Rates Table 6 193
Principal Property Taxpayers Table 7 195
Property Tax Levies and Collections Table 8 196
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 198
Ratios of Outstanding Net General Bonded Debt by Type Table 10 200
Direct and Overlapping Governmental Activities Debt Table 11 202
Legal Debt Margin Information Table 12 203
Pledged Revenue Coverage Table 13 204
Demographic and Economic:
Demographic and Economic Statistics Table 14 205
Principal Employers Table 15 207
Operating Information:
City Government Employees by Function/Program Table 16 208
Operating Indicators by FunctionlProgram Table 17 210
Capital Asset Statistics by Function/Program Table 18 212
IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION
Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Government 217
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 219
Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over
Compliance in Accordance with OMB Circular A-133 223
Schedule of Expenditures of Federal Awards 229
Schedule of Findings 231
Report on Supplementary Information -Financial Data Schedule 237
Financial Data Schedule 239
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2007
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
Gary Gorman
M. Rebecca Loader
Scott Clark
Keith Windschitl
Larry Scott
Lauren McClanahan
City Manager
Assistant to City Manager
City Clerk-Treasurer, Finance Director
City Attorney
Public Works Director, City Engineer
Chief of Police
Chief of Fire
Librarian
Community Development Director
Recreation Services Director
Liquor Operations Manager
Superintendent of Public Works
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City of Columbia Heights
Organizational Chart 2007
Mayar:
Gary L. Peterson
Cauncilmembers:
Tammera Diehm
Brace Kelzenberg
Brace Nawrocki
Robed Williams
City Manager:
Walter Fehst
POLICE Administered by Mayor}
Police Chief: Thomas Johnson
Secretary II
Clerk-Typist II
Police Captain
Sergeants (3}
Corporals ~3}
Patrol officers (16}
Community Service Officers ~2}
Support Services Supervisor
Secretary II-A (2}
FIRE
Fire Chief: Gary Gorman
Assistant Fire Chief
Fire Captains (3}
Secretary II (PT}
Clerk Typist II
Firefighters ~3}
0n-Call Firefighters X23}
LIBRARY
Library Directar: M. >~ebecca Loader
Clerk-Typist II ~2}
Library Clerk (PT}
Library Supervisor (4 PT}
Page X11 PT}
Library Aide APT}
Adult Services Librarian
Children's Librarian
PUBLIC 1NORKS
Public 1Narks DirectarlCity Engineer: Kevin Hansen
Secretary II-A
Assistant City Engineer
Administrative Assistant
PurchasinglAssessing Clerk
Engineering Technician IV ~2}
Engineering Technician III
Public Works Superintendent
Foreman (Parks, Sewer & Water, Streets} (3}
Maintenance Worker (15}
Supervisor-Vehicle Maintenance
Maintenance III -Mechanic
Maintenance III - BodymanlPainter
ADMINISTRATION
Assistant to the City Manager l
Human Resources Directar: Linda Magee
City Clerk
Administrative Secretary
RECREATION
Recreation Directar: Keith ~ndschitl
ClerklTypist II
Senior Citizen Coordinator
Program Coordinator
Recreation Clerk APT}
Head Custodian
Custodian II ~9 PT}
Custodian I (PT}
Cammissians & Baards:
Charter
EDA
H RA
Police & Fire Civil Service
Traffic
Telecommunications
Planning & Zoning
Park & Recreation
Library
FINANCE
Finance DirectarlCity ClerklTreasurer: William Elrite
Secretary II
Assistant Finance Director
Accounting Coordinator
PayrolllAccounting Clerk
Utilities Accounting Clerk II
Utilities Accounting Clerk
Accounting Clerk II APT}
Switchboard ~peratorlReceptionist
Meter Reader APT}
Liquor operations Manager
Assistant Liquor operations Manager (5}
Store Supervisors (2 PT}
Retail Clerk (34 PT}
IS Director
IS Technician
Imaging Technician (PT}
Election Judge ovaries}
COMMUNITY DEVELOPMENT
Community Development Directar: Scott Clark
Community Development Assistant
Building official
Planner
Community Development Specialist
Secretary II-LicensinglPermits Clerk
Secretary II
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590 40t Avenue N.E. Columbia Heights, MN 55421-3878 Office (763) 706-3600 TDD (763) 706-3692 ~'~ax~(
June 20, 2008
To the Citizens of the City of Columbia Heights,
Mayor, Council Members, and City Manager
~'.
)` d
The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year
ended December 31, 2007, 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,
2007. Their independent auditors' report is located at the front of the financial section of this
report.
State law requires Minnesota cities to issue by June 30th of each year a complete set of audited
financial statements for the preceding fiscal year ended December 31st. In addition, state law
requires that Minnesota cities undergo an annual Minnesota Legal Compliance Audit. During the
year ended December 31, 2007, the City expended more than $500,000 in federal grant awards.
The City is therefore required to undergo an audit inconformity 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 Minnesota Legal Compliance Audit and the Single (A-133) Audit,
including the Schedule of Expenditures of Federal Awards is included in the 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, a suburb located north of the City of Minneapolis in Anoka
County ineast-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.
Service Is Our Business
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
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The City Council consists of a Mayor and four Council Members. All are elected at-large, on a
non-partisan basis. The Mayor serves atwo-year term and the Council Members 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 18,288. 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/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 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.
Ina 2007 survey conducted by the metro area's regional government, the Metropolitan Council,
metro area residents ranked transportation, including traffic congestion and road conditions, as
their top concern. This, combined with high consumer gasoline prices, is expected to maintain
demand for housing located centrally within the metropolitan area. With its close proximity to
the Minneapolis downtown area (4 miles), the City of Columbia Heights offers many people
excellent opportunities to live close to where they work.
However, as an older, fully developed, inner-ring 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 recent sharp rise nation-wide in home
mortgage foreclosures has also been reflected locally. An estimated 195 home mortgages were
in some stage of the foreclosure process in City of Columbia Heights in 2007. The City Council
and City Management are taking a proactive approach to dealing with these concerns, and they
currently have a number of initiatives in progress to address them. Some of these are described
below.
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LONG-TERM FINANCIAL PLANNING
By Council resolution, a portion of the unreserved fund balance in the general fund is designated
for working capital purposes. This is targeted at 45% of budgeted general fund expenditures for
the following year. At December 31, 2007, there was sufficient unreserved fund balance in the
general fund to designate for working capital purposes an amount equal to 43% of budgeted
general fund expenditures for 2008.
The City has a planned Street Rehabilitation Program including, as needed, water mains, sanitary
sewer and storm sewer improvements. The program divides the City into seven street
rehabilitation zones and calls for approximately one zone to be rehabilitated every one to two
years. 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 collected over a number of years. Since the
inception of the program several years ago, the City has completed one round of rehabilitation
for each zone and is now beginning a second round.
RELEVANT FINANCIAL POLICIES
The City's policy is to budget and recognize license and permit revenues of the community
development function, such as building permit revenue, in the Community Development Fund, a
non-major special revenue fund. License and permit revenues of other functions are budgeted
and recognized in the general fund. For this reason, license and permit revenues in the general
fund are potentially lower than other comparable Minnesota Cities, which more commonly
budget for and recognize all license and permit revenues in the general fund.
CURRENT MAJOR INITIATIVES
Since 2004, the City has been facilitating two housing redevelopment projects by private
developers, using former commercial and industrial land. When completed, the projects will
consist of 231 and 550 units of housing, respectively. The developers have reimbursed some of
the pre-development costs incurred by the City for these projects.
Qualified costs incurred by the developer of the smaller project will be reimbursed from future
tax increment collections on the property on a pay-as-go basis. No such costs have been
reimbursed as of December 31, 2007 on that project. The Economic Development Authority has
issued revenue bonds to reimburse qualified costs incurred by the developer of the larger project
through mid-2007, with the bonds to be repaid from future tax increment collections on the
property.
Since 2004, the City has conducted studies and planning, with significant community
involvement, of options for additional gymnasium facilities within the City. At December 31,
2007, the City had approximately $4 million designated by the City Council for such facilities.
Subsequent to 2007 but prior to the date of this report, the City entered into an agreement with
Independent School District 13 to jointly build gymnasium facilities on School District property.
10
In 2007, the City purchased commercial land and constructed two retail stores within the City.
Subsequent to 2007, but prior to the date of this report, the City relocated its two largest
municipal liquor operations from rental properties to these new facilities, in order to both reduce
occupancy costs over the long-term and improve sales via these more favorable locations.
In 2007, the City conducted planning for a new public safety facility. Subsequent to 2007 but
prior to the date of this report, the City adopted an ordinance to issue general obligation bonds in
mid-2008 of up to $11,500,000 to finance the construction of this facility in 2008.
AWARD 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, 2006. 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
ega 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 J. Elrite
Finance Director
Joseph P. Kloiber
Assistant Finance Director
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12
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, 2DD~
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 financial reporting,
c~ a~x,~,
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kl~Jq ~
CARP ~ ,~ FreSdent
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EXeCUt1VC D1reCtor
13
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14
II. FINANCIAL SECTION
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16
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
fNDEPENDENT AUDfTDR'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, Za07
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. Dur responsibility is to express opinions on these financial
statements based on our audit.
~Ve 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.
Zn 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, 2007, and the respective changes in
financial position and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government auditing Standards, we have also issued our report dated
dune 19, 208 on our consideration of the City of Columbia Heights, Minnesota's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion an the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government ~iuditing Standards and should be considered in
assessing the results of our audit.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 1651 426 7000 651 426 5004 Fax I www.hlbtr.com
HLB Tautges Redpath, Ltd. is a member of International, a world-wide organization of accounting firms and business advisors- ~ Equal Opportunity Employer
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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.
Dur audit was conducted 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-~33; Audits of States, Local Governments and ~'on-
Prof t Organizations, along with the introductory section, combining and individual fund
statements and schedules, supplementary f nancial 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 f nancial 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 f nancial statements and, in our opinion,
are fairly stated in all material respects, in relation to the basic f nancial 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.
f~~ ~~~.f~ , ~~
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
June 19, 204$
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Columbia Heights, Minnesota (the City), 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, 2007. We encourage readers to consider
the information presented here in conjunction with additional information that we have furnished in
our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at December 3 1, 2007, by $57,366,165 net assets. Of
this amount, $27,224,224 or 47% are unrestricted net assets that 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.
During 2007, the City's total net assets increased by $554,924 or 1 %. This reflected an
approximately equal increase in the both the net assets of governmental activities and the net assets
of business-type activities.
As of December 31, 2007, the combined fund balances of the City's governmental funds were
$29,476,085. This is an increase of $7,873,969 or 36% over the prior year. This increase in
governmental fund balance is much larger than the increase in net assets, because it includes the
proceeds from governmental bonded debt issued in 2007.
The portion of the combined governmental fund balances at December 31, 2007, that was both
unreserved and undesignated was a (deficit) of ($903,224.)
As of December 31, 2007, the general fund balance of $3,979,146 included $35,710 reserved for
prepayments, $3,943,436 designated for working capital and $0 unreserved undesignated.
During 2007, the City's total bonded debt increased by $7,840,000 to an end of year total of
$16,654,999. This was primarily due to the issuance of $8,930,000 in new bonds to finance
redevelopment and the construction of public buildings and streets.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's 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.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to aprivate-sector
usiness.
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Management's Discussion and Analysis
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation and community development. The
business-type activities of the City 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, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into 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 of revenues,
expenditures, and change in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
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 each major governmental
fund. The major governmental funds in 2007 are the following:
22
Management's Discussion and Analysis
~ General fund
~ Economic Development Authority administration fund
Economic Development Authority administration lease revenue bonds 2007B fund
Municipal state aid street fund
~ Community center capital building fund
~ Capital improvements development fund
~ Capital equipment replacement general government fund
• Capital improvements-PIR fund.
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 adopts an annual appropriated budget for its general and certain special revenue funds listed
in the notes to the financial statements. A budgetary comparison statement has been provided for
these funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are presented as statements 3 through 5 of this
report.
Prop~ieta~y funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The City 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's various functions. The City uses internal service funds to
account for its central garage, information systems, 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 information systems
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. Conversely, the internal service funds are combined into a single, aggregated
presentation in the proprietary fund financial statements. Individual fund data for the internal service
funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements 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's own programs.
The accounting used for fiduciary funds is much like that used for proprietary funds.
23
Management's Discussion and Analysis
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 70 of this report.
Government-wide Financial Analysis
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, assets exceeded liabilities by $57,366,165 at December 3 1, 2007.
A portion of the City's net assets, $24,898,769 or 43%, reflects its investment in capital assets (e.g.
land, buildings, equipment and infrastructure) less any related debt used to acquire those assets that is
still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. It should be noted that, although net assets invested
in capital assets are reported net of related debt, 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.
A portion of the City's net assets represents resources that are subject to external restrictions on how
they maybe used. The remaining balance of unrestricted net assets, $27,224,224 or 47%, maybe
used to meet the City's ongoing obligations to citizens and creditors.
At December 3 1, 2007, the City is able to report positive balances in all three categories of net assets,
both for the government as a whole, as well as for its separate governmental and business-type
activities.
CITY OF COLUMBIA HEIGHTS NET ASSETS
Governmental Activities Business-Type Activities Totals
2007 2006 2007 2006 2007 2006
Current and other assets $30,878,689 $27,940,375 $9,522,005 $8,646,918 $40,400,694 $36,587,293
Capital assets 24,127,354 23,609,846 13,918,962 9,008,235 38,046,316 32,618,081
Total assets $55,006,043 $51,550,221 $23,440,967 $17,655,153 $78,447,010 $69,205,374
Long term liabilities
outstanding $9,361,914 $6,273,892 $8,110,655 $3,365,027 $17,472,569 $9,638,919
Other liabilities 2,070,265 1,979,694 1,538,011 775,520 3,608,276 2,755,214
Total liabilities $11,432,179 $8,253,586 $9,648,666 $4,140,547 $21,080,845 $12,394,133
Net assets
Invested in capital assets
net of related debt $18,859,030 $18,043,277 $6,039,739 $5,759,805 $24,898,769 $23,803,082
Restricted 3,000,889 2,294,384 2,242,283 385,227 5,243,172 2,679,611
Unrestricted 21,713,945 22,958,974 5,510,279 7,369,574 27,224,224 30,328,548
Total net assets $43,573,864 $43,296,635 $13,792,301 $13,514,606 $57,366,165 $56,811,241
24
Management's Discussion and Analysis
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET ASSETS
Governmental Activities Business-Type Activities Totals
2007 2006 2007 2006 2007 2006
Revenues:
Program revenues:
Charges for services $2,779,766 $2,692,920 $12,009,745 $11,596,578 $14,789,511 $14,289,498
Operating grants and
contributions 751,042 758,689 36,060 47,755 787,102 806,444
Capital grants and
contributions 2,935,195 4,773,935 - 22,822 2,935,195 4,796,757
General revenues:
Property taxes 6,321,467 5,953,722 - - 6,321,467 5,953,722
Tax increment collections 1,183,062 1,086,298 - - 1,183,062 1,086,298
Grants and contributions not
restricted to specific programs 1,844,516 1,679,384 - - 1,844,516 1,679,384
Unrestricted investment earnings 1,379,726 706,231 321,571 181,708 1,701,297 887,939
Gain on sale of capital assets
of governmental activities 44,000 15,930 - - 44,000 15,930
Total revenues 17,238,774 17,667,109 12,367,376 11,848,863 29,606,150 29,515,972
Expenses:
General government 1,732,111 1,689,675 - - 1,732,111 1,689,675
Public safety 4,380,363 3,992,930 - - 4,380,363 3,992,930
Public works 2,506,913 2,353,032 - - 2,506,913 2,353,032
Culture and recreation 2,313,750 2,135,633 - - 2,313,750 2,135,633
Community development 5,919,016 2,579,084 - - 5,919,016 2,579,084
Interest onlong-term debt 495,929 118,760 - - 495,929 118,760
Water - - 2,113,121 2,026,603 2,113,121 2,026,603
Sewer - - 1,675,738 1,393,679 1,675,738 1,393,679
Refuse - - 1,170,707 1,147,879 1,170,707 1,147,879
Storm sewer - - 204,221 184,764 204,221 184,764
Liquor - - 6,539,357 6,377,805 6,539,357 6,377,805
Total expenses 17,348,082 12,869,114 11,703,144 11,130,730 29,051,226 23,999,844
Increase (decrease) in
net assets before transfers (109,308) 4,797,995 664,232 718,133 554,924 5,516,128
Transfers 386,537 887,879 (386,537) 887,879 - -
Increase (decrease) in net assets 277,229 5,685,874 277,695 (169,746) 554,924 5,516,128
Net assets -January 1 43,296,635 37,610,761 13,514,606 13,684,352 56,811,241 51,295,113
Net assets -December 31 $43,573,864 $43,296,635 $13,792,301 $13,514,606 $57,366,165 $56,811,241
Governmental activities. In 2007, governmental activities increased the City's net assets by
$277,229 or less than 1 %, whereas in the prior year, governmental activities increased the City's net
assets by $4,797,995 or 15%. Key differences between the current and prior year governmental
activities changes in net assets include:
• Capital grants and contributions decreased $1,838,740 or 39%. Special assessments
for street improvements are a significant portion of total capital grants and
contributions. The street projects assessed in the current year were smaller than those
in the prior year. However, there was relatively little difference in expenses
recognized between the two years for this activity, as the majority of these expenses
will be recognized over the next 20 to 30 years, as the streets are used.
~ Investment income increased by $763,495 or 95%, primarily due to more favorable
market conditions.
~ Interest expense on long-term debt, including issuance costs, increased by $377,169
or 318% due to the issuance of $3,890,000 of bonds in mid-2007 and $2,759,550 of
bonds in December 2006.
25
Management's Discussion and Analysis
Expenses of the community development function increased by $3,339,932 or 130%,
primarily from a $2,537,846 reimbursement to a developer for qualifying
improvements made within the Huset Park Area Tax Increment Financing District.
Governmental Activities - 2007 Revenues
Other
revenues Charges for
Tax I9% services
increment 16%
~%
Program-
specific grants
Property 21
taxes
37%
Governmental Activities - 2007 Expenses
Interest on General
long-term government
Community debt 10%
development 3%
34% Public
safety
25%
Culture and Public
recreation works
13% 15%
26
Management's Discussion and Analysis
Business-type activities. In 2007, business-type activities increased the City's net assets by
$277,695 or 2%, whereas in the prior year, business-type activities decreased the City's net assets by
$169,746 or 1 %. Key differences between the current and prior year business-type activities changes
in net assets include:
Charges for services increased by $413,167 or 4%. This was mainly attributable to
increases in utility rates and liquor sales.
~ Sewer expenses increased by $282,059 or 20%. Sewer lining activities increased over
the prior year, but did not reach the level required for capitalization of infrastructure
under the City's accounting policy for capital assets.
~ Net transfers-out to the governmental activities decreased by $501,342 or 57%, due to
a one-time transfer in the prior year of $500,000 from the liquor operations to the
governmental activities to fund future construction of a gymnasium.
Business-Type Activities - 2007 Revenues
Other
revenues 3%
Charges for
services
9~%
27
Management's Discussion and Analysis
Business-Type Activities - 2007 Expenses
Liquor
58%
Water
Storm l~%
sewer Refuse Sewer
0
° 12% 11%
Financial Analysis of the Government's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
relatedlegal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City's financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
At December 31, 2007, the City's governmental funds reported combined fund balances of
$29,476,085. Of this total, $21,988,021 or 75% is unreserved fund balance. The remaining
$7,458,064 of fund balance is reserved because it has already been committed as follows:
~ Long-term interfund capital construction lease receivable of $5,040,000.
~ Prepaid items of $39,054.
• Real estate held for resale of $1,217,452.
~ Future program expenditures of $394,059 per grant agreements.
~ Future capital expenditures of $767,499 per state statute and bond indentures.
The general fund is the chief operating fund of the City. In 2007, fund balance in the general fund
increased by $3 83,298 or 11 %, whereas in the prior year, fund balance in the general fund increased
28
Management's Discussion and Analysis
by $245,720 or 7%. Key differences between the current and prior year change in general fund
balance include the following:
Total general fund revenues and transfers-in increased by $643,742 or 8%. This was
offset by an increase in total general fund expenditures and transfers-out of $505,335
or 6%.
Property tax revenue increased by $280,925 or 5%. This increase was adopted by the
City Council primarily to cover cost-of living/inflationary increases in expenditures
~ Intergovernmental revenue increased by $238,491 or 19%. The majority of this
reflects an increase in Local Government Aid from the State of Minnesota.
~ Public safety expenditures increased by $197,729 or 5%. This primarily from
increase in uniformed staff hours and the public safety portion of the 3 % cost-of
living-wage increase incurred by all City departments.
In 2007, the Economic Development Authority Administration Fund decreased by $29,793. This is
the amount by which the tax collections in this fund fell short of the amount transferred out from this
fund to the nonmajor governmental funds for community development services.
The Economic Development Authority (EDA) created a major debt service fund in 2007 named the
Economic Development Authority Lease Revenue Bonds 2007B Fund, to account for transactions
pertaining to the EDA series 2007B bonds and the related interfund capital construction lease with
the City's Liquor fund (an enterprise fund.) The issuance of the bonds and related interfund capital
construction lease were the only 2007 transactions of the fund. This resulted in an end of year fund
balance of $5,040,000; all of which was reserved as resources not available for current spending.
The Tax Increment Financing Huset Park Area Fund increased by $35,690 from the receipt of tax
increment in 2007. Additionally, this fund expended $2,537,846 in developer incentives for
redevelopment in the City's Huset Park area in 2007. However, this expenditure was funded by a
transfer-in from the nonmajor governmental funds, so these two transactions had no net effect on
ending fund balance of the Tax Increment Financing Huset Park Area Fund.
The Municipal State Aid Street Fund increased by $231,020 in 2007, as some state street aid revenue
received in 2007 was for eligible expenditures charged to this fund in prior years
The Community Center Capital Building Fund increased by $204,972 as a result of investment
income in excess of $47,865 of planning and administrative expenditures.
The Capital Improvement Development Fund increased by $156,894 in 2007. This resulted from a
$201,867 transfer-in from the nonmajor funds for ongoing redevelopment projects, offset with 2007
redevelopment revenues being slightly under 2007 redevelopment expenses.
The Capital Equipment Replacement General Government Fund increased by $104,680 in 2007. This
resulted from investment income and transfers-in from the general and liquor funds being greater
29
Management's Discussion and Analysis
than the amount of capital equipment charged to this fund in 2007, in accordance with the City's
long-range capital equipment replacement plan.
The Capital Improvements PIR Fund decreased by $268,193 in 2007. This primarily resulted from
capital outlays for current street projects, plus transfers to the nonmajor funds for debt service on
prior street projects, being greater than special assessments collected in the current year for street
projects.
The nonmajor governmental funds increased by $2,015,398 in 2007. This primarily resulted from
two factors. Of the total governmental bonds issued during the year, $717,263 was unspent and
remained in the nonmajor governmental funds at December 31, 2007. Also, the current resources
received by the nonmajor governmental funds for debt service were $787,412 greater than the current
debt service expenditures from these funds. These resources for debt service consisted of tax
increment received by certain tax increment financing districts and certain special assessments
collected by the Capital Improvements PIR Fund (referred to above) and transferred to the nonmajor
governmental funds.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government-wide financial statements for business-type activities, but in more detail. At December
31, 2007, net assets of the major proprietary funds included the following amounts of unrestricted net
assets (deficit):
Water Fund ($125,748)
Sewer Fund $2,691,151
• Refuse Fund $508,371
~ Storm Sewer Fund $61,940
Liquor Fund $1,020,119
The 2007 increases (decreases) in net assets of the major proprietary funds included the following:
Water Fund $123,298
Sewer Fund ($183,719)
Refuse Fund $40,765
~ Storm Sewer Fund $101,869
Liquor Fund $53,892
Other factors concerning the finances of the proprietary funds are addressed above in the analysis of
the City's business-type activities.
Bud eg tary High~hts
General fund. The changes between the original adopted 2007 budget and the final amended 2007
budget for the general fund consisted of:
A reclassification of $473,173 from tax revenue to intergovernmental revenue -market value
homestead credit. The City's policy is to initially adopt the annual budget using the
classifications for property tax revenues required to certify the annual tax levy to Anoka
30
Management's Discussion and Analysis
County for collection. A portion of the amount calculated under this classification is never
actually received from the County in the form of tax revenue. This portion is received from
the State of Minnesota as intergovernmental revenue -the market value homestead credit.
Each year, after the levy has been certified to Anoka County, an amendment to the original
budget is recorded to reclassify this portion to its natural/object classification for reporting
purposes.
An increase of $47,747 to budgeted police personnel expenditures, and an equal increase to
the combined amount budgeted for intergovernmental revenue (grants) and charges for
services. This reflects additional police services contracted for other governments and
private entities after the adoption of the original budget.
An increase of $2,200 to budgeted fire personnel expenditures to conduct a specific civic
event.
Actual general fund revenues in 2007 were $264,661 or 3% more than budgeted. This consists of
two main e ements:
The increase in the fair market value of investments exceeded the budgeted change by
$128,332 due to a favorable but temporary change in market conditions.
During 2007, a tax increment financing (TIF) district within the City expired. Unused
increment accumulated by the district was returned from the nonmaj or funds to Anoka
County in 2007. Anoka County in turn, disbursed to each of the district's overlapping tax
jurisdictions the proportionate amounts captured from each jurisdiction. The amount
returned to the City in 2007 was $13 8,403; which is approximately 44% of the unused
increment at the close of the district. As these funds are now free of tax increment
restrictions, the $13 8,403 was recognized in the general fund as property tax revenue. This
effect of the expiration of the TIF district was not included in the 2007 budget.
Actual general fund expenditures in 2007 were $159,081 or 2% less than budgeted as follows:
Roughly half of this budget variance was from public safety actual expenditures being less
than budgeted, primarily from vacancies in police officer positions budgeted for 2007.
Roughly half of this budget variance consisted of variances of approximately $14,000 in each
of the departments that make up the general government function. This was largely
attributable to similar budget estimating practices across these departments.
Other 2007 general fund budget variances were offsetting and not significant.
Additional budgetary comparison for the general fund is provided in Statement 10 of this financial
report.
31
Management's Discussion and Analysis
Capital Asset and Debt Administration
City of Columbia Heights' Capital Assets
Beginning
Governmental activities:
Capital assets -not depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets -being depreciated:
Buildings
Equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Equipment
Infrastructure
Total accumulated depreciation
Capital assets being depreciated -net
Governmental activities capital assets -net
Business-type activities:
Capital assets -not depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets -being depreciated:
Buildings
Equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Equipment
Infrastructure
Total accumulated depreciation
Capital assets being depreciated -net
Business-type activities capital assets -net
Total capital assets -net
Ending
$3,415,458 $ - $ - $3,415,458
6,152,798 1,168,470 (2,758,391) 4,562,877
9,568,256 1,168,470 (2,758,391) 7,978,335
10,533,658 1,341,466 - 11,875,124
5,832,375 592,404 (190,283) 6,234,496
18,199,130 1,556,128 - 19,755,258
34,565,163 3,489,998 (190,283) 37,864,878
9,116,907 208,042 - 9,324,949
3,729,417 435,773 (168,568) 3,996,622
7,677,249 717,039 - 8,394,288
20,523,573 1,360,854 (168,568) 21,715,859
14,041,590 2,129,144 (21,715) 16,149,019
23,609,846 3,297,614 (2,780,106) 24,127,354
340,893 - - 340,893
875,789 5,344,020 (438,614) 5,781,195
1,216,682 5,344,020 (438,614) 6,122,088
909,689 - - 909,689
1,683,425 68,262 (39,451) 1,712,236
12,447,096 423,150 - 12,870,246
15,040,210 491,412 (39,451) 15,492,171
708,226 21,963 - 730,189
1,151,763 121,953 (31,602) 1,242,114
5,388,668 334,326 - 5,722,994
7,248,657 478,242 (31,602) 7,695,297
7,791,553 13,170 (7,849) 7,796,874
9,008,235 5,357,190 (446,463) 13,918,962
$32,618,081 $8,654,804 ($3,226,569) $38,046,316
Capital assets. The City's capital assets for its governmental and business-type activities as of
December 31, 2007, amount to $38,046,316 net of accumulated depreciation. This investment in
capital assets includes land, buildings, equipment, infrastructure, and construction in progress. Note
that real estate that is only held for resale is not included here in the analysis of capital assets used in
governmental and business-type activities.
32
Management's Discussion and Analysis
At December 31, 2007, the City had $274,000 of noncancellable contractual commitments for capital
asset construction in 2008. The significant capital asset events during 2007 consisted of the
following construction projects:
Year As of December 31, 2007
Project Started Cost to Date Status
Zone 1, 7B street reconstruction 2004 $1,979,278 completed
Huset parkway street reconstruction 2004 4,110,946 in-progress
Municipal service center renovation 2005 1,115,870 completed
Zone 1B,2,3 street reconstruction 2006 1,487,946 in-progress
Two municipal liquor stores,
including land acquistion costs 2007 5,000,268 in-progress
Additional information on the City's capital assets can be found in Note 4 to the financial statements.
Long-term debt. During 2007, the City's total bonded debt increased by $7,840,000 to an end of
year total of $16,654,999. This was primarily due to the issuance of $8,930,000 in new bonds to
finance redevelopment and the construction of public buildings and streets.
Bonded debt outstanding at year end included both general obligation bonds, all of which are backed
by the full faith and credit of the City, and revenue bonds for which only revenues from the related
projects financed are pledged for repayment. Some of the general obligation bonds have specific
revenue sources pledged other than property taxes, but in the event those other sources were
insufficient, the City would be required to fund the shortfall through property taxes.
State statute limits the net amount of certain general obligation debt a Minnesota city may issue to
2% of the taxable market value of property within the city's taxing jurisdiction. At December 31,
2007, the City's debt limitation under this statute was $27,255,660, and $1,000,000 of the City's
outstanding general obligation debt was of the type included in this statutory limitation.
City of Columbia Heights' Long-Term Debt
Governmental Activities
~nm ~nn~
Business-Type Activities
~nm ~nn~
Totals
~nm ~nnti
General obligation bonds:
Repaid only with general taxes $1,000,000 $ - $ - $ - $1,000,000 $ -
Withother pledged revenues 4,774,296 5,566,569 2,950,703 3,248,431 7,724,999 8,815,000
Revenue bonds 2,890,000 - 5,040,000 - 7,930,000 -
Compensatedabsences 697,618 707,323 119,952 116,597 817,570 823,920
$9,361,914 $6,273,892 $8,110,655 $3,365,028 $17,472,569 $9,638,920
The City's general obligation bonds have an Al rating from Moody's, based on the City's financial
margins, debt levels and continued tax base growth. The outstanding revenue bonds of the business
activities at December 31, 2007, are repaid only with lease revenue and have an A3 rating from
Moody's. The outstanding revenue bonds of the governmental activities at December 31, 2007, are
33
Management's Discussion and Analysis
repaid only with tax increment and are unrated.
In addition to bonded debt, at year end there was long-term debt in the amount of $817,570 for
compensated absences. Additional information on the City's long-term debt can be found in Note 7
to the financial statements.
Economic Factors and Next Year's Budget
In 2007, the average annual unemployment rate for Anoka County, which includes the City, was
4.5%, which is an increase from a rate of 3.9% one year ago. This compares to the 2007 state and
national rates of 4.6%.
In 2007, there was an increase in the annual number of residential mortgage foreclosures in the City.
Available data is insufficient to place this change in the context of the state and national trends that
have emerged with the recent downturn in the housing and home-mortgage industries.
Inflationary trends in the region compare favorably to national trends.
These factors were considered in preparing the City of Columbia Heights' budget for the 2008 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.
34
BASIC FINANCIAL STATEMENTS
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 1
Page 1 of 2
Assets
Current assets:
Cash and investments
Cash and investments with fiscal agent
Receivables:
Accounts (net of allowance for uncollectibles)
Special assessments -current
Taxes
Interest
Due from other governmental units -current
Internal balances
Prepayments
Inventory - at cost
Real estate held for resale
Total current assets
Noncurrent assets:
Special assessments receivable -noncurrent
Due from other governmental units -noncurrent
Capital assets (net of accumulated depreciation):
Land
Buildings
Equipment
Infrastructure
Construction in process
Total noncurrent assets
Total assets
Primary Government
Governmental Business-Type
Totals
2007 2006
$24,763,537 $3,086,737 $27,850,274 $26,765,616
- 3,241,492 3,241,492 -
273,115 1,171,894 1,445,009 1,339,113
438,905 - 438,905 335,350
351,523 - 351,523 260,418
177,658 43,319 220,977 211,332
573,613 44,828 618,441 1,285,095
(199,752) 199,752 - -
97,800 181,555 279,355 163,353
42,400 1,469,958 1,512,358 1,779,113
1,796,636 - 1,796,636 1,723,436
28,315,435 9,439,535 37,754,970 33,862,826
2,563,254 - 2,563,254 2,616,594
- 82,470 82,470 107,873
3,415,458 340,893 3,756,351 3,756,351
3,073,041 179,500 3,252,541 2,141,080
2,171,430 470,123 2,641,553 2,568,178
10,904,548 7,147,251 18,051,799 17,123,887
4,562,877 5,781,195 10,344,072 7,028,585
26,690,608 14,001,432 40,692,040 35,342,548
55,006,043 23,440,967 78,447,010 69,205,374
The accompanying notes are an integral part of these fmancial statements.
36
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 1
Page 2 of 2
Primary Government
Governmental Business-Type Totals
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Contracts payable -retained percentage
Due to other governmental units
Unearned revenue
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
Tax increment purposes
Grant programs
Capital asset additions
Unrestricted
Total net assets
.ctivities Activities 2007 2006
$524,570 $974,883 $1,499,453 $1,086,880
305,318 72,025 377,343 326,967
81,068 146,859 227,927 210,505
163,325 224,445 387,770 391,067
691,210 - 691,210 496,224
144,827 118,799 263,626 70,923
159,947 1,000 160,947 172,648
36,834 6,334 43,168 56,026
3,136,935 1,904,509 5,041,444 3,901,240
660,784 113,618 774,402 767,894
7,634,460 7,630,539 15,264,999 7,724,999
8,295,244 7,744,157 16,039,401 8,492,893
11,432,179 9,648,666 21,080,845 12,394,133
18,859,030 6,039,739 24,898,769 23,803,082
1,232,411 775,036 2,007,447 1,338,304
428,090 - 428,090 462,774
394,059 - 394,059 386,115
946,329 1,467,247 2,413,576 492,418
$43,573,864 $13,792,301 $57,366,165 $56,811,241
The accompanying notes are an integral part of these fmancial statements.
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2007
Charges For
Expenses Services
Functions/Pro r.~ ams
Primary government:
Government activities:
General government $1,732,111 $177,378
Public safety 4,380,363 670,017
Public works 2,506,913 130,351
Culture and recreation 2,313,750 297,341
Community development 5,919,016 1,504,679
Interest on long-term debt 495,929 -
Total government activities 17,348,082 2,779,766
Business-type activities:
Water 2,113,121 2,273,980
Sewer 1,675,738 1,419,252
Refuse 1,170,707 1,303,472
Storm sewer 204,221 290,419
Liquor 6,539,357 6,722,622
Total business-type activities 11,703,144 12,009,745
Total primary government $29,051,226 $14,789,511
The accompanying notes are an integral part of these fmancial statements.
38
Statement 2
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Operating Capital Primary Government
Grants and Grants and Governmental Business-Type Totals
Contributions Contributions Activities Activities 2007 2006
$ - $ - ($1,554,733)
389,325 103,974 (3,217,047)
154,309 1,448,180 (774,073)
47,784 71,516 (1,897,109)
159,624 1,311,525 (2,943,188)
- (495,929)
751,042 2,935,195 (10,882,079)
36,060
36,060 0 0
$787,102 $2,935,195 ($10,882,079)
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets used
in government activities
Transfers
Total general revenues and transfers
Change in net assets
Net assets -beginning
Net assets -ending
$ - ($1,554,733) ($1,515,760)
- (3,217,047) (3,056,359)
- (774,073) 1,972,966
- (1,897,109) (1,650,959)
- (2,943,188) (274,698)
- (495,929) (118,760)
0 (10,882,079) (4,643,570)
160,859 160,859 137,867
(256,486) (256,486) (19,462)
168,825 168,825 163,143
86,198 86,198 85,703
183,265 183,265 169,174
342,661 342,661 536,425
$342,661 (10,539,418) (4,107,145)
$6,321,467 $ - 6,321,467 5,953,722
1,183,062 - 1,183,062 1,086,298
1,844,516 - 1,844,516 1,679,384
1,379,726 321,571 1,701,297 887,939
44,000 - 44,000 15,930
386,537 (386,537) - -
11,159,308 (64,966) 11,094,342 9,623,273
277,229 277,695 554,924 5,516,128
43,296,635 13,514,606 56,811,241 51,295,113
$43,573,864 $13,792,301 $57,366,165 $56,811,241
The accompanying notes are an integral part of these financial statements.
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
Econ Dev Econ Dev
Authority Authority Tax Increment
Administration Lease Revenue Financing
Fund Bonds 2007B Huset Park
General Fund (Component Unit) Area Fund
Assets
Cash and investments $4,315,897 $48,899 $ - $35,645
Receivables:
Accounts 63,044 - - -
Special assessments - - - -
Taxes 294,949 13,694 - 128
Interest 22,398 - - 80
Due from other governmental units 59,605 - - -
Interfundreceivable 31,094 - - -
Interfundcapital construction lease receivable - - 5,040,000 -
Prepayments 3 5,710 - - -
Realestate held for resale - 985,134 - -
Total assets $4,822,697 $1,047,727 $5,040,000 $35,853
Liabilities and Fund Balances
Liabilities:
Accounts payable $126,124 $ - $ - $ -
Accruedsalaries and withholdings payable 250,822 - - -
Contracts payable -retained percentage - - - -
Due to other governmental units 104,433 - - -
Interfundpayable - 1,400,000 - 74,179
Deferred revenue 3 62,172 11,3 5 8 - -
Deposits - - - -
Total liabilities 843,551 1,411,358 0 74,179
Fund balances:
Reserved for:
Interfund capital construction lease receivable - - 5,040,000 -
Prepayments 3 5,710 - - -
Realestate held for resale - 985,134 - -
Program expenditures - - - -
Capital expenditures - - - -
Unreserved:
Designated, reported in:
General fund 3,943,436 - - -
Special revenue funds - - - -
Debtservice funds - - - -
Capital projects funds - - - -
Undesignated, reported in:
Special revenue funds - (1,348,765) - -
Debtservice funds - - - (38,326)
Total fund balances 3,979,146 (363,631) 5,040,000 (38,326)
Total liabilities and fund balances $4,822,697 $1,047,727 $5,040,000 $35,853
The accompanying notes are an integral part of these fmancial statements.
40
Statement 3
Capital Capital
Municipal Community Improvements Equipment Capital Other Intra Totals
State Aid Center Capital Development Replacement Improvements Governmental Activity Governmental
Street Fund Building Fund Fund General Gov't PIR Fund Funds Eliminations Funds
$ - $4,185,233 $754,950 $4,215,331 $981,776 $8,394,758 $ - $22,932,489
- - 54,309 - 99,890 55,872 - 273,115
- - - - 3,002,159 - - 3,002,159
- - - - - 42,752 - 351,523
- 33,720 3,140 41,220 8,970 53,660 - 163,188
63,000 - 213,657 - 5,971 231,380 - 573,613
- - 800,000 806,486 74,179 690,076 (1,595,350) 806,485
- - - - - - - 5,040,000
- - - - - 3,344 - 39,054
- - 211,205 - 43,500 556,797 - 1,796,636
$63,000 $4,218,953 $2,037,261 $5,063,037 $4,216,445 $10,028,639 ($1,595,350) $34,978,262
$4,052 $270 $12,253 $ - $4,385 $338,269 $ - $485,353
3,551 - 2,696 - 26 40,454 - 297,549
- - - - 78,348 2,720 - 81,068
- - 2,100 - 3,215 53,577 - 163,325
18,909 - - - - 442,328 (1,595,350) 340,066
- - - - 2,990,780 610,559 - 3,974,869
- - 136,953 - - 22,994 - 159,947
26,512 270 154,002 0 3,076,754 1,510,901 (1,595,350) 5,502,177
5,040,000
- - - - - 3,344 - 39,054
- - 211,205 - - 21,113 - 1,217,452
- - - - - 394,059 - 394,059
- - - - - 767,499 - 767,499
- - - - - - - 3,943,436
- - - - - 1,138,561 - 1,138,561
- - - - - 1,921,200 - 1,921,200
36,488 4,218,683 1,672,054 5,063,037 1,139,691 3,788,095 - 15,918,048
- - - - - 621,294 - (727,471)
- - - - - (137,427) - (175,753)
The accompanying notes are an integral part of these financial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2007
Econ Dev Econ Dev
Authority Authority Tax Increment
Administration Lease Revenue Financing
Fund Bonds 2007B Huset Park
General Fund (Component Unit) Area Fund
Revenues:
Taxes $5,483,751 $275,740 $ - $ -
Tax increment collections - - - 32,367
Special assessments - - - -
Licenses and permits 137,787 - - -
Intergovernmental 1,988,013 11,695 2,967
Charges for services 572,697 - - -
Park dedication fees - - - -
Fines and forfeitures 142,568 - - -
Investment income:
Interest and dividends 114,500 - - 420
Change in fair value 53,332 - - 200
Other revenues 35,339 - - -
Totalrevenues 8,527,987 287,435 0 35,954
Expenditures:
Current:
General government 1,597,801 - - -
Publicsafety 3,996,791 - - -
Publicworks 1,304,925 - - -
Culture and recreation 1,486,251 - - -
Community development - - - 264
Capital outlay:
Public safety - - - -
Public works 31,834 - - -
Culture and recreation - - - -
Community development - - - -
Debtservice:
Principal retirement - - - -
Interest and fiscal charges - - - -
Issuance costs - - - -
Developer incentives - - - 2,537,846
Total expenditures 8,417,602 0 0 2,538,110
Revenues over (under) expenditures 110,385 287,435 0 (2,502,156)
Other financing sources (uses):
Transfers in 470,512 - - 2,537,846
Transfers out (197,599) (317,228) - -
Bonds issued - - 5,040,000 -
Bonddiscount - - - -
Sale of capital assets - - - -
Total other financing sources (uses) 272,913 (317,228) 5,040,000 2,537,846
Net change in fund balance 383,298 (29,793) 5,040,000 35,690
Fund balance -January 1 3,595,848 (333,838) - (74,016)
Fund balance -December 31 $3,979,146 ($363,631) $5,040,000 ($38,326)
The accompanying notes are an integral part of these financial statements.
42
Statement 4
Capital Capital
Municipal Community Improvements Equipment Capital Other Intra Total
State Aid Center Capital Development Replacement Improvements Governmental Activity Governmental
Street Fund Building Fund Fund General Gov't PIR Fund Funds Eliminations Funds
$ - $ - $ - $ - $ - $504,748 $ - $6,264,239
- - - - - 1,147,593 - 1,179,960
- - - - 1,137,576 - - 1,137,576
- - - - 307,046 - 444,833
402,220 - 829,997 - 994,522 - 4,229,414
6,105 - 296,548 - 146,906 973,603 - 1,995,859
- - - - - 46,179 - 46,179
- - - - - 17,815 - 160,383
- 172,470 16,040 210,820 45,890 322,184 - 882,324
- 80,370 7,480 98,240 21,380 127,890 - 388,892
- - - 88,826 - 124,165
408,325 252,840 1,150,065 309,060 1,351,752 4,530,406 0 16,853,824
- - - - - 18,573 - 1,616,374
- - - - 105,900 19,720 - 4,122,411
148,595 - - 3,834 173,480 9,879 - 1,640,713
- - - - - 752,542 - 2,238,793
- 47,865 1,192,759 - - 1,836,422 - 3,077,310
- - - 41,460 - 213,268 - 254,728
- - - 181,691 794,482 295,290 - 1,303,297
- - - 139,395 - 135,501 - 274,896
- - 132,176 - - 174,156 - 306,332
- - - - - 792,273 - 792,273
- - - - - 219,065 - 219,065
- - - - - 148,213 - 148,213
- - - - - 47,767 - 2,585,613
148,595 47,865 1,324,935 366,380 1,073,862 4,662,669 0 18,580,018
259,730 204,975 (174,870) (57,320) 277,890 (132,263) 0 (1,726,194)
- 201,867 100,000 197,729 1,990,057 (4,927,637) 570,374
(28,710) - - - (743,812) (3,710,288) 4,927,637 (70,000)
- - - 3,890,000 - 8,930,000
- - - (22,108) - (22,108)
- 129,897 62,000 - - - 191,897
(28,710) 0 331,764 162,000 (546,083) 2,147,661 0 9,600,163
231,020 204,975 156,894 104,680 (268,193) 2,015,398 0 7,873,969
(194,532) 4,013,708 1,726,365 4,958,357 1,407,884 6,502,340 - 21,602,116
$36,488 $4,218,683 $1,883,259 $5,063,037 $1,139,691 $8,517,738 $0 $29,476,085
1llC d~GUlll~dllylll~' llUl.CS dfC dll 1[1l.C~i-dl ~di~l. Ul ~llC~C 11I1dllGldl 5l.dlClllClll~.
43
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44
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
For The Year Ended December 31, 2007
Statement 5
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)
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 difference is the amount by which capital outlays for capital assets
used in governmental activities exceeded depreciation in the current year.
Revenues that are earned in the current year but are not currently available, are not
reported in the governmental funds. They are, however, reported in the statement of activities.
The issuance oflong-term debt provides current financial resources to the governmental funds,
while repayment of the principal oflong-term debt consumes the current financial resources of
the governmental funds. Neither transaction has any effect on net assets however. This
amount is the net effect of these differences in the treatment of long-term debt.
Interest that accrues >n the current year on long-term debt, but is not paid in the current year,
does not consume current financial resources, and is therefore not reported in the governmental.
funds. It does reduce net assets however, and is reported as an expense in the statement of
activities.
The net expenses of certain activities of internal service funds are reported with governmental
activities >n the statement of activities.
Change in net assets of governmental activities (Statement 2)
The accompanying notes are an integral part of these fmancial statements.
$7,873,969
549,278
102,543
(8,137,727)
(106,543)
(4,291)
$277,229
45
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Business-Type Activities -Enterprise Funds
Assets: Water Sewer Refuse
Current assets:
Cash and cash equivalents $476,579 $1,430,565 $247,872
Cash and cash equivalents with fiscal agent - - -
Receivables:
Accounts (net of allowance for uncollectibles) 477,747 311,781 313,040
Interest 5,870 17,150 2,210
Due from other governmental units -current - 7,586 36,060
Interfund receivable 403,611 842,868 1,427
Prepayments - 70,075 -
Inventory - at cost 2,571 - -
Total current assets 1,366,378 2,680,025 600,609
Noncurrent assets:
Due from other governmental units -noncurrent - 82,470 -
Capital assets:
Land 45,223 36,586 -
Buildings 559,826 100,426 6,000
Equipment 456,629 707,615 108,690
Infrastructure 6,744,007 4,804,853 -
Construction in process 418,310 206,467 -
Total capital assets 8,223,995 5,855,947 114,690
Less: accumulated depreciation (3,205,148) (3,435,854) (96,806)
Net capital assets 5,018,847 2,420,093 17,884
Total noncurrent assets 5,018,847 2,502,563 17,884
Total assets 6,385,225 5,182,588 618,493
Liabilities:
Current liabilities:
Accounts payable 71,368 13,206 91,303
Accrued salaries and withholdings payable 13,468 12,183 935
Contracts payable -retained percentage - 11,995 -
Due to other governmental units 155,653 - -
Interfundpayable 906,418 - -
Accruedinterest payable 34,574 235 -
Deposits 1,000 - -
Compensatedabsences payable -current 1,027 1,525 -
Bondspayable -current 230,037 4,356 -
Total current liabilities 1,413,545 43,500 92,238
Noncurrent liabilities:
Compensated absences payable -noncurrent 18,432 27,361 -
Interfundcapital construction lease payable -noncurrent - - -
Bondspayable -noncurrent 1,954,729 9,122 -
Total noncurrent liabilities 1,973,161 36,483 0
Total liabilities 3,386,706 79,983 92,238
Net assets:
Invested in capital assets, net of related debt 2,834,081 2,406,615 17,884
Restricted for debt service 290,186 4,839 -
Restrictedfor capital asset additions - - -
Unrestricted (125,748) 2,691,151 508,371
Total net assets $2,998,519 $5,102,605 $526,255
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.
46
Statement 6
Business-Type Activities -Enterprise Funds
Storm Intra Activity Total Internal Total
Sewer Liquor Eliminations Enterprise Funds Service Funds Proprietary Funds
$165,885 $65,446 $ - $2,386,347 $2,531,438 $4,917,785
- 3,241,492 - 3,241,492 - 3,241,492
68,149 1,177 - 1,171,894 - 1,171,894
2,571 9,908 - 37,709 20,080 57,789
- 1,182 - 44,828 - 44,828
185,277 - (1,093,116) 340,067 - 340,067
- 111,480 - 181,555 58,746 240,301
- 1,467,387 - 1,469,958 42,400 1,512,358
421,882 4,898,072 (1,093,116) 8,873,850 2,652,664 11,526,514
- - - 82,470 - 82,470
254,724 4,360 - 340,893 - 340,893
- 243,437 - 909,689 1,510,174 2,419,863
- 343,948 - 1,616,882 275,322 1,892,204
1,321,385 - - 12,870,245 - 12,870,245
156,151 5,000,267 - 5,781,195 - 5,781,195
1,732,260 5,592,012 0 21,518,904 1,785,496 23,304,400
(333,312) (564,709) - (7,635,829) (597,998) (8,233,827)
1,398,948 5,027,303 0 13,883,075 1,187,498 15,070,573
1,398,948 5,027,303 0 13,965,545 1,187,498 15,153,043
1,820,830 9,925,375 (1,093,116) 22,839,395 3,840,162 26,679,557
8,712 788,262 - 972,851 41,249 1,014,100
854 37,917 - 65,357 14,437 79,794
- 134,864 - 146,859 - 146,859
1,860 66,932 - 224,445 - 224,445
186,698 806,486 (1,093,116) 806,486 - 806,486
12,247 71,743 - 118,799 - 118,799
- - - 1,000 - 1,000
69 3,236 - 5,857 37,311 43,168
125,771 - - 360,164 - 360,164
336,211 1,909,440 (1,093,116) 2,701,818 92,997 2,794,815
1,230 58,047 - 105,070 669,332 774,402
- 5,040,000 - 5,040,000 - 5,040,000
626,688 - - 2,590,539 - 2,590,539
627,918 5,098,047 0 7,735,609 669,332 8,404,941
964,129 7,007,487 (1,093,116) 10,437,427 762,329 11,199,756
646,489 98,783 - 6,003,852 1,187,498 7,191,350
148,272 331,739 - 775,036 - 775,036
- 1,467,247 - 1,467,247 - 1,467,247
61,940 1,020,119 - 4,155,833 1,890,335 6,046,168
$856,701 $2,917,888 $0 12,401,968 $3,077,833 $15,479,801
1,390,333
$13,792,301
The accompanying notes are an integral part of these financial statements.
47
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2007
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
Miscellaneous expenses
Interest and fiscal charges
Total nonoperating revenues (expenses)
Net income (loss) before capital contributions and transfers
Capital contribution -capital asset
Transfers in
Transfers out
Total transfers
Change in net assets
Total net assets -beginning
Total net assets -ending
Business-Type Activities -Enterprise Funds
$154,062 $1,419,252 $1,303,472
2,119,918 -
2,273,980 1,419,252 1,303,472
1,001,074 819,698 1,068,972
799,214 654,858 52,014
201,021 168,723 11,169
2,001,309 1,643,279 1,132,155
30,000 110,614 11,320
13,980 40,870 5,280
- - 36,060
2,892 1,226 -
(84,432) (590) -
(37,560) 152,120 52,660
235,111 (71,907) 223,977
822,971 447,814 -
(934,784) (559,626) (183,212)
(ll 1,813) (111,812) (183,212)
123,298 (183,719) 40,765
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 accompanying notes are an integral part of these financial statements.
48
Statement 7
Business-Type Activities -Enterprise Funds
Intra Activity Total Internal Total
Storm Sewer Liquor Eliminations Enterprise Funds Service Funds Proprietary Funds
$290,419 $ - $ - $3,167,205 $853,059 $4,020,264
- 6,722,390 - 8,842,308 131,716 8,974,024
290,419 6,722,390 0 12,009,513 984,775 12,994,288
- 5,144,882 - 8,034,626 1,072,993 9,107,619
117,170 1,286,540 - 2,909,796 - 2,909,796
60,478 22,404 - 463,795 46,216 510,011
177,648 6,453,826 0 11,408,217 1,119,209 12,527,426
112,771 268,564 0 601,296 (134,434) 466,862
13,140 48,167 - 213,241 102,710 315,951
6,130 10 - 66,270 47,860 114,130
- - - 36,060 - 36,060
- 232 - 4,350 - 4,350
- (7,849) - (7,849) - (7,849)
(30,172) (40,532) - (155,726) - (155,726)
(10,902) 28 0 156,346 150,570 306,916
101,869 268,592 0 757,642 16,136 773,778
- - - - 1,115, 870 1,115, 870
242,886 6,388,875 (7,902,546) - 239,000 239,000
(242,886) (6,603,575) 7,902,546 (621,537) (117,837) (739,374)
0 (214,700) 0 (621,537) 1,237,033 615,496
101,869 53,892 0 136,105 1,253,169 1,389,274
754,832 2,863,996 - 12,265,863 1,824,664 14,090,527
$856,701 $2,917,888 $0 $12,401,968 $3,077,833 $15,479,801
$136,105
141,588
$277,693
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2007
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
Net cash flows from operating activities
Cash flows from noncapital fmancing activities:
Transfers in
Transfers out
Interfund receivable repaid by (advanced to) other funds
Interfund payable (repaid to) advanced by other funds
Miscellaneous revenues
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds from sales of capital assets
Transfers in
Transfers out
Interfund payable (repaid to) advanced by other funds
Principal payments -bonds
Advances under interfund capital construction lease
Interest and fiscal charges -including capitalized interest
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
Business-Type Activities -Enterprise Funds
«r n r r
$2,245,285 $1,412,878 $1,290,707
(1,458,749) (1,220,773) (1,098,742)
(380,821) (232,311) (22,174)
405,715 (40,206) 169,791
171,126 339,584 -
(282,939) (451,396) (183,212)
(15,911) (1,643) (162)
24 8,172 - -
120,448 (113,455) (183,374)
(204,265) (108,745) -
2,892 1,226 -
651,845 108,230 -
(651,845) (108,230) -
(179,705) (4,162) -
(71,691) (661) -
(452,769) (112,342) 0
29,480 109,933 11,380
~n nnn ~n nnn r nnn
~/,wv i/v,vv/ iv,vvv
116,854 (115,200) 3,077
Total cash and cash equivalents -January 1
Total cash and cash equivalents -December 31
476,579 1,430,565 247,872
(Less) cash and cash equivalents with fiscal agent -December 31
Cash and cash equivalents -December 31
The accompanying notes are an integral part of these financial statements.
50
Statement 8
Page 1 of 2
Business-Type Activities -Enterprise Funds
Total
Storm Sewer Liquor Enterprise Funds
$285,354 $6,721,910 $11,956,134
(54,690) (5,244,956) (9,077,910)
(54,994) (823,330) (1,513,630)
175,670 653,624 1,364,594
- - 510,710
- (214,700) (1,132,247)
(185,277) - (202,993)
7,351 - 255,523
- 232 232
(177,926)
(50,730)
242,886
(242,886)
(113,860)
(28,425)
(193,015)
(214,468)
(4,370,677)
6,388,875
(6,388,875)
806,486
5,040,000
(113,764)
1,362,045
(568,775)
(4,734,417)
4,118
7,391,836
(7,391,836)
806,486
(297,727)
5,040,000
(214,541)
603,919
11,039
6,130
17,169
(178,102)
343,987
165,885
165,885
46,649
10
46,659
1,847,860
1,459,078
3,306,938
(3,241,492)
65,446
208,481
66,270
274,751
1,674,489
3,953,350
5,627,839
(3,241,492)
2,386,347
Internal
Service Funds
$ -
1,348,098
(764,048)
(697,284)
(113,234)
235,000
(25,000)
210,000
(4,738)
4,000
(92,837)
(93,575)
102,469
47,860
150,329
153,520
2,377,918
2,531,438
2,531,438
The accompanying notes are an integral part of these financial statements.
51
Total
Proprietary Funds
$11,956,134
1,348,098
(9,841,958)
(2,210,914)
1,251,360
745,710
(1,157,247)
(202,993)
255,523
232
(358,775)
(4,739,155)
4,118
7,395,836
(7,484,673)
806,486
(297,727)
5,040,000
(214,541)
510,344
310,950
114,130
425,080
1,828,009
6,331,268
8,159,277
(3,241,492)
4,917,785
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Business-Type Activities -Enterprise Funds
«r , ~ r
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 receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
Adjustment for nonoperating portion
(Increase) decrease in inventory, at cost
Increase (decrease) in accounts payable
Adjustment for nonoperating portion
Increase (decrease) in accrued
salaries and withholdings payable
Adjustment for nonoperating portion
Increase (decrease) in contracts payable -retained percentage
Adjustment for nonoperating portion
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
Noncash capital and related fmancing activities
Capital assets purchased/constructed on account
Contribution of capital assets from government
$272,671 ($224,027) $171,317
201,021 168,723 11,169
(27,695) (24,191) (12,765)
- 17,817 -
- (1,767) -
85 - -
36,673 7,964 156
(45,582) -
1,237 1,837 (86)
- 11,995 -
(33,089) - -
(1,000) - -
1,394 1,443 -
133,044 183,821 (1,526)
$405,715 ($40,206) $169,791
$45,582 $ - $ -
$ - $ - $ -
The accompanying notes are an integral part of these financial statements.
52
Statement 8
Page 2 of 2
Business-Type Activities -Enterprise Funds
Total
Storm Sewer Liquor Enterprise Funds
$112,771 $268,564 $601,296
60,478 22,404 463,795
(5,065) (242) (69,958)
- (238) 17,579
- (93,958) (95,725)
- 111,480 111,480
- 258,691 258,776
7,090 516,971 568,854
- (441,625) (487,207)
(229) 4,084 6,843
- (2,096) (2,096)
- 134,864 146,859
- (134,864) (134,864)
785 4,818 (27,486)
- - (1,000)
(160) 4,771 7,448
62,899 385,060 763,298
$175,670 $653,624 $1,364,594
$ - $578,585 $624,167
$ - $ - $ -
Internal
Service Funds
($134,434)
46,216
(19,905)
7,979
(2,329)
3,037
(13,798)
21,200
($113,234)
$ -
$1,115,870
Total
Proprietary Funds
$466,862
510,011
(69,958)
17,579
(115,630)
111,480
266,755
566,525
(487,207)
9,880
(2,096)
146,859
(134,864)
(27,486)
(1,000)
(6,350)
784,498
$1,251,360
$624,167
$1,115,870
The accompanying notes are an integral part of these financial statements.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2007
Statement 9
Assets:
Cash and investments
Due from other governmental units
Total assets
Liabilities:
Due to other governmental units
Total liabilities
Net assets
The accompanying notes are an integral part of these financial statements.
$4,735
12,518
17,253
17,253
17,253
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Columbia Heights, Minnesota (the City) was incorporated in 1898. A Council composed of an elected
mayor and four council members governs the City. The Council exercises legislative authority and determines all
matters of policy. The Manager, 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 fmancial position and results of operations of the HRA and the EDA component units are presented
using the blended method. These blended component units, although legally separate entities, are, in
substance, part of the City's operations. The component units include Governmental Funds using the
modified accrual basis of accounting, and as such are reported as Special Revenue Funds. Separate
financial statements for the HRA and EDA are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide fmancial 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.
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes 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.
The City's only fiduciary funds are agency funds. Agency funds are custodial in nature, and do not
involve measurement of results of operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the mod f ed 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 Economic DevelopmentAuthority 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.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
The Economic Development Authority lease revenue bonds 20078 fund is a fund of the component
unit, Economic Development Authority. It was established to account for revenues and expenditures
associated with EDA lease revenue bond series 2007B and the related interfund capital construction
lease issued to finance construction of two municipal liquor stores in the City.
The tax increment financing Huset Park area fund was established to account for the revenues and
expenditures of the Huset Park area redevelopment tax increment financing district established under
state statute.
The municipal state aid street fund is maintained according to state statue to account for maintenance
and construction of municipal state aid street systems.
The community center capital building fund was established to account for the planning, development
and construction of a community center.
The capital improvement development fund is used to account for improvements to various
redevelopment areas within the City.
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, information systems, 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 Tri-City GIS fund is used to account for the
joint purchase of certain services for which the City is fiscal agent on behalf of the City of Columbia
Heights, the City of Fridley and the City of Andover.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
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, and then use unrestricted resources as they are needed.
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.
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
The City Council annually adopts budgets prior to January 1 for the General fund and the following special
revenue funds:
Major special revenue funds:
Economic Development Authority administration fund
Nonmajor special revenue funds:
Community development fund
Cable television fund
Library fund
D.A.R.E. program fund
Housing and Redevelopment Authority (component unit):
Parkview villa north fund
Parkview villa south fund
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.
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 receivablelpayable." Long-
term interfund capital leases to finance construction are classified as "interfund capital construction lease
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
receivablelpayable." Any residual balances outstanding between the governmental activities and business-
type activities are reported in the government-wide fmancial statements as "internal balances."
Because utility bills are considered liens on property, no estimated uncollectible amounts are established.
Uncollectible amounts are not material for property taxes, special assessments and 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 fmance
expenditures of the current period. In practice, current and delinquent taxes received by the City are
recognized as revenue for the current year. Delinquent taxes 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 taxes receivable in governmental funds are offset by deferred revenue.
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 Council or 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.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 and deferred special assessments receivable in governmental
funds are offset by deferred revenue.
L 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. PREPAID 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.
K. CAPITAL ASSETS
Capital assets, which include land, buildings, equipment, and infrastructure assets (e.g., roads, sidewalks,
water systems, sewer systems and similar items), are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. The government defines capital
assets 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 $1
Buildings 25,000
Equipment 5,000
Infrastructure 250,000
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed. For the year ended December 31, 2007, interest of $33,495 was
capitalized in connection with construction in progress.
Property, plant, and equipment of the primary government, as well as the component units, is depreciated
using the straight line method over the following estimated useful lives:
Capital Assets
Buildings 20 - 50 years
Equipment 3 -15 years
Infrastructure 20-60 years
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, Accounting for
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 fmancial 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.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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.
0. 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.
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
Certain comparative total data for the prior year has been presented in the government-wide financial
statements in order to provide an understanding of the changes in the City's financial position and
operations. 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 (513,849,123) difference are as follows:
Bonds payable ($13,704,296)
Accrued interest payable (144,827)
Net adjustment to reduce fund balance -total
governmental funds to arrive at net assets of
governmental activities. ($13,849,123)
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 5549,278 difference
are as follows:
Total capital outlay in government fund financial statements $2,139,253
Capital outlay for real estate held for resale (13 8,916)
Capital outlay on behalf of other governmental unit (103,974)
Cost of capital assets sold, net of accumulated depreciation (18,000)
Depreciation expense (1,329,085)
Net adjustment to increase net changes in fund balance
- total governmental funds to arrive at changes in net
assets of governmental activities. 5549,278
Another element of that reconciliation states, "Revenues earned in the current year, that do not provide
current financial resources, are not reported in the governmental funds. They are, however, reported in
the statement of activities." The details of this $102,543 difference are as follows:
General property taxes deferred revenue:
At December 31, 2006 (5200,670)
At December 31, 2007 257,897
Tax increment taxes deferred revenue:
At December 31, 2006 (31,881)
At December 31, 2007 34,983
Special assessments deferred revenue:
At December 31, 2006 (2,948,566)
At December 31, 2007 2,990,780
Net adjustment to decrease net changes in fund
balances -total governmental funds to arrive at
changes in net assets of governmental activities. 5102,543
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Another element of that reconciliation states that, "The issuance oflong-term debt provides current
financial resources to the governmental funds, while repayment of the principal oflong-term debt
consumes the current financial resources of governmental funds. Neither transaction has any effect on
net assets however. This amount is the net effect of these differences in the treatment oflong-term
debt." The details of this ($8,137,727) difference are as follows:
Debt issued:
General obligation bonds -street reconstruction ($1,000,000)
Lease revenue bonds (5,040,000)
Tax increment revenue bonds (2,890,000)
Principal repayments:
General obligation bonds -tax increment 610,000
General obligation bonds -improvement 182,273
Net adjustment to increase net changes in fund
balances -total governmental funds to arrive at
changes in net assets of governmental activities. ($8,137,727)
S. STATEMENT OF CASH FLOWS
For 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. Also at December
3 1, 2007, the remaining unspent bond proceeds of the Economic Development Authority Lease Revenue Series
2007B Bonds were held in trust by a fiscal agent and restricted for use for liquor store construction and debt service
on the bonds. The following is a reconciliation of the City's total cash and investment balances as of December 3 1,
2007:
Carrying
Amount At
Fair Value
Investments $27,943,411
Deposits 3,146,780
Cash on hand 6,310
(Less) fidicuiary fund cash (4,735)
$31,091,766
Cash and investments $27,850,274
Cash and investments with fiscal agent 3,241,492
X31.091.766
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 rated "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;
(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.
Deposits at December 31, 2007 are as follows:
Carrying
Bank Amount At
Balances Fair Value
Demand deposits $1,070,484 $557,943
Time deposits 2,601,800 2,588,837
Total $3,672,284 $3,146,780
B. INVESTMENTS
Minnesota Statutes Section 118A authorizes 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 described in Section ll 8A.05. This includes primarily money market
funds rated in the top two rating categories by a national rating service, and companies whose only
investments are described in items a) through h) of this note.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
(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.
h) Guaranteed investment contracts with certain U.S. fmancial institutions carrying only high quality
unsecured debt, if the City has withdrawal rights upon a decline in debt quality.
As of December 3 1, 2007 the City had the following investments and maturities:
Weighted
Average Carrying Percentage
Maturities Amount At of Fair Value
In Years Fair Value Per Issuer
Notes guaranteed by U.S. government agencies:
Federal Home Loan Bank 6.3 $7,478,155 26.8%
Federal Home Loan Mortgage Corporation 6.1 6,825,404 24.4%
Federal National Mortgage Association 6.1 3,241,807 11.6%
Federal Farm Credit Bank 11.0 300,564 l.l%
Commercial paper:
General Electric Capital Corporation 0.1 2,991,870 10.7%
Money market mutual funds:
First American Treasury Obligation Fd NIA 3,241,492 11.6%
Wachovia Securities NIA 3,142,344 11.3%
Various other issuers N/A 721,775 2.6%
Total investments $ 27,943,411 100.0%
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
C. INVESTMENT RISKS
The City's investment policy is to follow Minnesota State Statutes as described above which reduces the
City's exposure to credit, custodial credit, and interest rate risks. Specific risk information for the City
is as follows:
a) Interest rate risk -The City's investment policy requires the City to diversify its investment portfolio to
eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy
also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all
operating requirements which might be reasonably anticipated.
b) Credit risk - As of December 3 1, 2007, the City's investments in the FHLB, FHLMC, FNMA, and
FFCB Notes were all rated AAA by Standard & Poor's, and Aaa by Moody's Investors Service. As of
December 3 1, 2007 ,the City's investments in Commercial Paper were all rated A 1 by Standard &
Poor's, and P 1 by Moody's Investors Service. The money market funds in which the City held shares
at December 31, 2007, were invested solely in U.S. Government Obligations and/or securities
guaranteed by the U.S. government, and those underlying securities are rated AAA by Standard and
Poors and Aaa by Moody's Investor Service.
c) Concentration of credit risk -The City places no limit on the amount the City may invest in any one
issuer. The table above details the percentage of the City's investments with each issuer at December
3 1, 2007.
d) Custodial credit risk -For investments, custodial credit risk is the risk that in the event of a failure of
the counterparty, the City will not be able to recover the value of its investments that are in the
possession of an outside party. As of December 3 1, 2007, all investments of the City were insured,
registered and held by the City or its agent in the City's name.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 3 1, 2007 are as follows:
Major Funds
Capital
Improvement
PIR Fund Sewer Total
Special assessments receivable $2,563,254 $ - $2,563,254
Due from other governmental units - 82,470 82,470
Total $2,563,254 $82,470 $2,645,724
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 3 1, 2007, a
balance of $82,470 remained to be collected over the next three years. This receivable is presented as due from
other governmental units in the Sewer Utility Fund.
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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-unavailable and deferred revenue-unearned reported in the governmental
funds were as follows:
Unavailable Unearned
Delinquent property tares receivable (General fund)
Delinquent property tares receivable (Econ. Dev. Authority Administration fund)
Delinquent tax increment (Nonmajor Funds)
Delinquent special assessments (Capital Improvements -PIR fund)
Special assessments not yet due (Capital Improvements -PIR fund)
Contract service fees received but unearned (General Fund)
Rental fees received but unearned (Nonmajor Funds)
Real estate held for resale -unearned grant revenue (Anoka County CDBG fund)
Total deferred revenue for governmental funds
$246,539 $ -
ll,358 -
34,983 -
28, ll 7 -
2,962,663 -
- 115,633
- 42,252
- 533,324
X3.283.660 $691.209
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 3 1, 2007 is as follows:
Beginning Ending
Governmental activities:
Capital assets -not depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets -being depreciated:
Buildings
Equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Equipment
Infrastructure
Total accumulated depreciation
Capital assets being depreciated -net
Governmental activities capital assets -net
Business-type activities:
Capital assets -not depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets -being depreciated:
Buildings
Equipment
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Equipment
Infrastructure
Total accumulated depreciation
Capital assets being depreciated -net
Business-type activities capital assets -net
Total capital assets -net
$3,415,458 $ - $ - $3,415,458
6,152,798 1,168,470 (2,758,391) 4,562,877
9,568,256 1,168,470 (2,758,391) 7,978,335
10,533,658 1,341,466 - 11,875,124
5,832,375 592,404 (190,283) 6,234,496
18,199,130 1,556,128 - 19,755,258
34,565,163 3,489,998 (190,283) 37,864,878
9,116,907 208,042 - 9,324,949
3,729,417 435,773 (168,568) 3,996,622
7,677,249 717,039 - 8,394,288
20,523,573 1,360,854 (168,568) 21,715,859
14,041,590 2,129,144 (21,715) 16,149,019
23,609,846 3,297,614 (2,780,106) 24,127,354
340,893 - - 340,893
875,789 5,344,020 (438,614) 5,781,195
1,216,682 5,344,020 (438,614) 6,122,088
909,689 - - 909,689
1,683,425 68,262 (39,451) 1,712,236
12,447,096 423,150 - 12,870,246
15,040,210 491,412 (39,451) 15,492,171
708,226 21,963 - 730,189
1,151,763 121,953 (31,602) 1,242,114
5,388,668 334,326 - 5,722,994
7,248,657 478,242 (31,602) 7,695,297
7,791,553 13,170 (7,849) 7,796,874
9,008,235 5,357,190 (446,463) 13,918,962
$32,618,081 $8,654,804 ($3,226,569) $38,046,316
~~
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Depreciation expense was charged to functions/programs of the primary government - governmental activities as
follows:
Governmental activities:
General government $61,442
Public safety 167,444
Public works 892,038
Culture and recreation 88,947
Community development 119,214
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Central garage 31,769
Total depreciation expense -capital assets held by governmental activities $1,360,854
Depreciation expense was charged to functions/programs of the primary government -business-type activities as
follows:
Business-type activities:
Water $201,021
Sewer 168,723
Refuse 11,169
Storm sewer 60,478
Liquor 22,405
Depreciation on capital assets held bybusiness-type internal service activities
is charged to each function based on use:
Information Systems 14,446
Total depreciation expense -capital assets held bybusiness-type activities $478,242
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 5 INTERFUND RECEIVABLES, PAYABLES ,CAPITAL LEASES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 3 1, 2007 are as follows:
Fund
Maj or Funds
General Fund
Economic Dev. Authority Admin.
Tax Increment Huset Park Area Fund
Municipal State Aid Street Fund
Capital Improvement Development
Capital Equipment Replacement General Govt.
Capital Improvements PIR Fund
Water
Sewer
Refuse
Storm Sewer
Liquor
Nonmaj or funds
Total
Receivable Payable
$31,094 $ -
- 1,400,000
- 74,179
- 18,909
800,000 -
806,486 -
74,179 -
403,611 906,418
842,868 -
1,427 -
185,277 186,698
- 806,486
h9~.~7h 442.328
~3,~35,U1~ ~3,~35,U18
$27,059 of these interfund balances reflect services provided in 2007 and reimbursed in 2008. All other interfund
balances at December 31, 2007 reflect lending arrangements to cover deficit cash balances at year end, including
some to fmance the acquisition of certain real estate held for resale. All amounts are expected to be repaid within
one year.
INTERFUND CAPITAL CONSTRUCTION LEASE
During 2007, the Economic Development Authority issued $5,040,000 in lease revenue bonds, and in turn entered
into a capital lease for the same amount and payment terms with the Liquor Fund, to finance construction of two
municipal liquor stores. The lease is recorded as an interfund capital construction lease receivable in the Economic
Development Authority Lease Revenue Bonds 2007B Fund and an interfund capital construction lease payable in
the Liquor Fund. In the government-wide financial statements, the interfund lease is eliminated and the bonds
payable are reported under the business activities.
The present value of the minimum required future lease payments equals the $5,040,000 original principal of the
bonds. The annual minimum required lease payments (principal and interest) match the annual debt service to
maturity for the bonds. As these are also currently the only outstanding revenue bonds of the business activities, the
annual minimum required lease payments (principal and interest) required under the lease match the annual debt
service to maturity of the business activities revenue bonds listed in Note 7.
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
INTERFUND TRANSFERS
Interfund transfers during the year ended December 3 1, 2007 are as follows:
From To Amount Purpose
Community Development General Fund $21,700 Labor allocation
Cable Television General Fund 65,581 Labor allocation
Library General Fund 10,194 Labor allocation
Water Utility Operating Account General Fund 76,813 Labor allocation
Sewer Utility Operating Account General Fund 76,812 Labor allocation
Refuse Utility Fund General Fund 74,106 Labor allocation
Refuse Utility Fund General Fund 74,106 Labor allocation
Liquor Operating Account General Fund 70,700 Labor allocation
Tax Increment Bonds GO Tax Increment Refunding Bonds 2004A 643,800 Debt service
Municipal State Aid Street Fund GO ImprovementBonds 2006A 28,710 Debt service
Capital Improvements PIlZFund GO ImprovementBonds 2006A 615,366 Debt service
Capital Improvements PIR Fund GO ImprovementBonds 1999A 25,421 Debt service
Capital Improvements PIR Fund GO ImprovementBonds 2003A 103,025 Debt service
Water Utility Operating Account Water Utility Debt Service Account 281,992 Debt service
Sewer Utility Operating Account Sewer Utility Debt Service Account 4,800 Debt service
StormSewer Utility Operating Account StormSewer Utility Debt Service Account 178,616 Debt service
General Fund Capital Improvements PIR Fund 12,599 Allocate project costs
Infrastructure Fund Capital Improvements PIR Fund 185,130 Allocate project costs
Water Utility Capital Equipment Replacement Account Water Utility Operating Account 59,403 Place capital assets into service
Water Utility Construction Account Water Utility Operating Account 285,450 Place capital assets into service
Sewer Utility Construction Account Sewer Utility Operating Account 78,430 Place capital assets into service
StormSewer Utility Construction Account StormSewer Utility Operating Account 59,270 Place capital assets into service
Contributed Projects -Other General Fund 500 Allocate project costs
General Fund Capital Improvement Parks 50,000 Fund capital improvements: Parks
Central Garage Operating Account Capital Improvement General GovtBldgs 88,837 Fund building improvements: General
General Fund Capital Equipment Replacement General Government 50,000 Fund equipment replacement
Water Utility Operating Account Water Utility Capital Equipment Replacement Account 25,000 Fund equipment replacement
Sewer Utility Operating Account Sewer Utility Capital Equipment Replacement Account 25,000 Fund equipment replacement
StormSewer Utility Operating Account StormSewer Utility Capital Equipment Replacement Account 5,000 Fund equipment replacement
Liquor Operating Account Capital Equipment Replacement General Government 50,000 Fund equipment replacement
Central Garage Operating Account Central Garage Capital Equipment Replacement Account 4,000 Fund equipment replacement
Water Utility Operating Account Water Utility Construction Account 171,126 Allocate project costs
Sewer Utility Operating Account Sewer Utility Construction Account 339,584 Allocate project costs
Liquor Operating Account Liquor Capital Construction Account 1,832,793 Fund store construction
Liquor Debt Service Account Liquor Capital Construction Account 4,556,082 Finance store construction
Liquor Operating Account DARE Program 9,000 Fund DARE program
General Fund Infrastructure Fund 50,000 Fund construction
Liquor Operating Account Infrastructure Fund 50,000 Fund construction
General Fund Data Processing Operating Account 35,000 Fund data processing services
Cable Television Data Processing Operating Account 35,000 Fund data processing services
Water Utility Operating Account Data Processing Operating Account 35,000 Fund data processing services
Sewer Utility Operating Account Data Processing Operating Account 35,000 Fund data processing services
Refuse Utility Fund Data Processing Operating Account 35,000 Fund data processing services
Liquor Operating Account Data Processing Operating Account 35,000 Fund data processing services
Central Garage Operating Account Data Processing Operating Account 25,000 Fund data processing services
EDA Administration Community Development 317,228 Fund Community Development
Community Development Capital Improvements Development 201,867 Fund certain redevelopment activity
Special Projects Contributed Projects-Recreation 8,670 City match of contributed project
EDA TIF Revenue Bonds 2007 Series Huset Park Area TIF 2,537,846 Finance redevelopment
$13,639,557
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Transfers In
Major Funds
Governmental Enterprise Nonmajor Funds
TIF Capital Capital Eq. Capital Nonmajor
Huset Park Improvement Replacement Improvement Storm Gov't Internal
General Area Development Gen. Godt PIR Water Sewer Sewer Liquor Funds Service Total
Transfers out:
Major funds:
Governmental:
General $ - $ - $ - $50,000 $12,599 $ - $ - $ - $ - $100,000 $35,000 $197,599
Econ. Dev. Authority Admin. - - - - - - - - - 317,228 - 317,228
Municipal State Aid Street - - - - - - - - - 28,710 - 28,710
Capital Improvements PIR - - - - - - - - - 743,812 - 743,812
Enterprise:
Water 76,813 - - - - 822,971 - - - - 35,000 934,784
Sewer 76,812 - - - - - 447,814 - - - 35,000 559,626
Refuse 148,212 - - - - - - - - - 35,000 183,212
Storm sewer - - - - - - - 242,886 - - 242,886
Liquor 70,700 - - 50,000 - - - - 6,388,875 59,000 35,000 6,603,575
Nonmajor governmental funds 97,975 2,537,846 201,867 - 185,130 - - - - 652,470 35,000 3,710,288
Internal service funds - - - - - - - - - 88,837 29,000 117,837
Total $470,512 $2,537,846 $201,867 $100,000 $197,729 $822,971 $447,814 $242,886 $6,388,875 $1,990,057 $239,000 $13,639,557
Note 6 OPERATING LEASE EXPENSE
The City has leased premises for a liquor store (Top Valu I) under a lease agreement that originally expired
December 3 1, 2004. This lease was 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, 2007 amounted to
$132,009.
The City also leased premises for its Top Valu II liquor store under afive-year lease that originally expired
February 28,1998, with afive-year renewal option in 1998 and 2003. The City exercised the 2003 renewal option.
This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended
December 3 1, 2007 amounted to 576,588.
Future minimum rental payments are as follows:
Year Top Value I Top Value II
2008 S 15,488 59,194
Upon expiration of these two leases, the Top Valu I and Top Valu II operations will be relocated to two City-owned
facilities constructed in 2007. These new facilities are financed with the interfund capital construction lease
described in Note 5.
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
asset 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. Although,
some of these general obligation bonds are repaid solely through general property taxes, most have other pledged
revenues that are applied to the annual debt service. Any deficiencies in these revenues will be offset by general
property taxes. All of the bonds are serial bonds, which require semiannual payments of principal andlor interest
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
from the date the bonds are issued. There are a number of limitations and restrictions contained in the various bond
indentures. The City is incompliance with all significant limitations and restrictions. General obligation bonds
outstanding at December 3 1, 2007 are as follows:
Pledged revenue,
if any, in addition to
general property taxes
Original Interest Issue
Issue Rate Date
Final Balance
Maturity End of Year
Governmental activities:
GO Street rehabilitation series 2007A General taxes only $1,000,000 4.00-4.375% 9/19/2007 2/1/2018 $1,000,000
GO Tax increment refunding series 2004A Tax increment 1,985,000 2.00-2.75% 12/16/2004 9/1/2009 775,000
GO Improvement series 1999A Special assessments 860,000 3.45-4.30% 5/1/1999 2/1/2010 235,000
GO Improvement series 2003A Special assessments 1,332,829 L10-4.00% 6/1/2003 2/1/2018 1,004,746
GO Improvement series 2006A Special assessments 2,759,550 4.00% 12/7/2006 2/1/2020 2,759,550
Business-type activities:
GO Improvement series 2003A Utility revenues 222,172 1.10-4.00% 6/1/2003 2/1/2018 115,254
GO Improvement series 2006A Utility revenues 645,450 4.00% 12/7/2006 2/1/2020 645,450
GO Utility revenue series 1999B Utility revenues 1,935,000 3.45-4.30% 5/1/1999 2/1/2010 680,000
GO Utility revenue series 2003A Utility revenues 1,045,000 1.10-4.00% 6/1/2003 2/1/2018 840,000
GO Utility revenue series 2006A Utility revenues 670,000 4.00% 12/7/2006 2/1/2020 670,000
Total general obligation bonds outstanding $8,725,000
As of December 3 1, 2007, the annual debt service requirements to maturity for general obligation bonds are as
follows:
Fiscal Year
Ending Governmental Activities Business-Type Activities
December 31 Principal Interest Principal Interest
2008 $1,029,836 $202,947 5360,164 $106,839
2009 774,972 173,502 375,028 93,085
2010 642,736 144,886 412,264 77,776
2011 595,620 120,851 199,380 65,979
2012 611,399 97,358 238,601 57,835
2013 504,899 75,443 250,101 48,570
2014 486,083 55,780 268,917 38,582
2015 271,583 40,660 243,417 28,617
2016 279,313 29,585 245,687 19,035
2017 288,146 18,001 271,854 8,807
2018 239,709 7,028 85,291 1,706
2019 25,000 1,500 - -
2020 25,000 500 - -
Total $5,774,296 $968,041 $2,950,704 $546,831
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
REVENUE BONDS
The City issues revenue bonds for which the City pledges only the income derived from the acquired or constructed
assets to pay the debt service. In 2007, the City issued $7,930,000 of such bonds and no such bonds were
outstanding from prior years. All of the bonds are serial bonds, which require semiannual payments of principal
and/or interest from the date the bonds are issued. There are a number of limitations and restrictions contained in
the bond indentures. The City is incompliance with all significant limitations and restrictions. Revenue bonds
outstanding at December 3 1, 2007 are as follows:
Original Interest Issue Final Balance
Pledged revenue Issue Rate Date Maturity End of Year
Governmental activities:
Tax increment revenue series 2007
Business-type activities:
Public facility lease revenue series 2007B
Total revenue bonds outstanding
Tax increment $2,890,000 5.00-5.375%
Liquor revenues 5,040,000 4.50-5.00%
8/3/2007 2/15/2032 $2,890,000
9/19/2007 2/1/2030 5,040,000
$7,930,000
As of December 3 1, 2007, the annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Year
Ending Governmental Activities Business-Type Activities
December 31 Principal Interest Principal Interest
2008 $ - $157,675 $ - $208,263
2009 9,000 152,363 - 240,305
2010 43,000 151,063 140,000 237,155
2011 48,000 148,788 150,000 230,630
2012 53,000 146,263 155,000 223,768
2013 58,000 143,488 165,000 216,568
2014 62,000 140,488 170,000 209,030
2015 68,000 137,238 180,000 201,155
2016 74,000 133,688 185,000 192,942
2017 80,000 129,838 195,000 184,393
2018 87,000 125,576 205,000 175,239
2019 94,000 120,870 215,000 165,474
2020 102,000 115,774 230,000 155,128
2021-2025 636,000 486,675 1,330,000 595,453
2026-2030 900,000 282,294 1,720,000 223,106
2031-2032 576,000 34,722 - -
Total $2,890,000 $2,606,803 $5,040,000 $3,458,609
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 3 1, 2007, is as follows:
Beginning Ending Due Within
Governmental activities:
Bonds payable
General obligation bonds repaid only with general taxes
General obligation bonds with other pledged revenues
Revenue bonds
Total bonds payable
Compensated absences
Total governmental activity long-term liabilities
Business-type activities:
Bonds payable
General obligation bonds repaid only with general taxes
General obligation bonds with other pledged revenues
Revenue bonds
Total bonds payable
Compensated absences
Total business-type activity long-term liabilities
$ - $1,000,000 $ - $1,000,000 $ -
5,566,569 - (792,273) 4,774,296 1,029,836
- 2,890,000 - 2,890,000 -
5,566,569 3,890,000 (792,273) 8,664,296 1,029,836
707,323 373,696 (383,401) 697,618 36,834
$6,273,892 $4,263,696 ($1,175,674) $9,361,914 $1,066,670
3,248,431 - (297,728) 2,950,703 360,164
- 5,040,000 - 5,040,000 -
3,248,431 5,040,000 (297,728) 7,990,703 360,164
116,597 75,497 (72,241) 119,853 6,334
$3,365,028 $5,115,497 ($369,969) $8,110,556 $366,498
For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an
internal service fund.
Note 8 CONDUIT DEBT
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 3 1, 2007, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $23,115,000.
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 9 FUND EQUITY
The following funds had a fund deficit as of December 31, 2007:
Major Funds:
Special Revenue Funds:
Economic Development Authority Administration ($363,631)
Debt Service Funds:
Tax Increment Financing Huset Park Area (38,326)
Nonmajor Funds:
Special Revenue Funds:
Anoka County CDBG ($11,872)
Debt Service Funds:
Sheffield TIF Redevelopment (280,682)
TIF Multi-Use Redevelopment Plan (18,478)
Total fund deficits ($712,989)
The City will finance these deficits through external or internal sources in future years.
At December 3 1, 2007 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
Special Revenue Funds:
Reserved for prepayments
Reserved for real estate held for resale
Reserved for program expenditures
Designated for working capital
Designated for maintenance
Debt Service Funds:
Reserved for interfund capital lease
Designated for debt service
Capital Projects Funds:
Reserved for real estate held for resale
Reserved for program expenditures
Reserved for capital expenditures
Designated for capital expenditures
Major Nonmaj or
Funds Funds Totals
$35,710 S - 535,710
3,943,436 - 3,943,436
- 3,344 3,344
985,134 21,113 1,006,247
- 394,059 394,059
- 48,924 48,924
- 1,089,637 1,089,637
5,040,000 - 5,040,000
- 1,921,200 1,921,200
211,205 - 211,205
- 767,499 767,499
12,129,953 3,788,095 15,918,048
rhnn n ~r nnn rl~n nnn nnn rl~nn nnn nnn
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 (PEKE) 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. The City has no current employees that are
Basic Plan members. All new members must participate in the Coordinated Plan. All police officers and
firefighters 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.
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of astep-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 maybe 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.
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 Coordinated Plan members are required to contribute
5.75% of their annual covered salary. The PEPFF members are required to contribute 7.80% of their
annual covered salary. The City of Columbia Heights is required to contribute the following percentages
of annual covered payroll: 6.25% for Coordinated Plan PERF members, and 11.70% for PEPFF members.
The City's contributions 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
2005 $231,162 $194,487
2006 256,283 227,111
2007 276,252 269,611
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 was repayment of the
UAAL, which was payable in 10 equal annual installments from 1999 - 2009. Annual payments for the City of
Columbia Heights were $56,706 for the fire and police accounts. During 2003, the entire outstanding amount
of $325,675 was paid off.
Note 12 DEFINED CONTRIBUTION PLAN
A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION
The Columbia Heights Fire Department Relief Association is the administrator of asingle-employer pension
plan for the paid on-call 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.
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Type of Benefit. The exclusive pension provided by the association is a "Defined Contribution Lump Sum
Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contributions Rewired 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 2007, state aid was contributed to the plan. This state
aid revenue and the related contribution expense/expenditure of $89,645 are recognized in the accompanying
financial statements for the year ended December 3 1, 2007.
B. COUNCIL MEMBERS
Certain council members of the City of Columbia Heights are covered by the Public Employees Defined
Contribution Plan (PEDCP), amultiple-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 the 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 decides to participate
contributes 5% of salary, which is matched by the elected official's employer.
Employer and employee contributions are combined and used to purchase shares in one or more of the seven
accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of
employer contributions and four-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
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
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 or development agreements; of an immaterial
amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs.
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 maybe 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, 2007, the City's committed obligation for such projects was approximately $274,000.
Additionally, under the terms of six tax increment financing agreements, the City has commitments to
reimburse developers for certain qualifying redevelopment costs. These future reimbursements are limited,
however, to the future tax increment received from certain tax increment districts. The amount to be paid
under these agreements is not determinable at this time.
Additionally, under the terms of a private redevelopment contract, the City has a commitment to pay for a
portion of the pollution remediation costs necessary to redevelop certain land formerly used for industrial
purposes. Under the agreement, the City is obligated for 50 percent of costs in excess of amounts funded
by grants, with a maximum exposure of $1 million. The amount to be paid under this agreement is not
determinable at this time. However, at December 3 1, 2007, only monitoring activities remained to be
performed in the remediation plan.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 14 SUBSEQUENT EVENTS
In March 2008, the City entered into a joint powers agreement with Columbia Heights Independent School District
13, providing for the City's use of a gymnasium to be constructed at City expense on school district property. The
city has designated the fund balance of the Community Capital Building Fund to be pay for the construction.
In May 2008, the City adopted an ordinance to issue general obligation bonds in mid-2008 of up to $11,500,000 to
finance 2008 construction of a public safety facility.
Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS
For the year ended December 3 1, 2007, the City implemented the following statement issued by the Governmental
Accounting Standards Boards (GASB), which did not have a material effect on the accompanying financial
statements:
Statement No. 48 Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of
Assets and Future Revenues.
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for the accompanying financial statements for the year ended December 31, 2007. The effect these
standards may have on future financial statements is not determinable at this time:
Statement No. 45 Accounting and Financial Reporting by Employers for Post Employment Benefits
Other than Pensions. 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 $100 million); and after December 15, 2008, for phase 3 governments
(those with total annual revenues of less than $10 million).
Statement No. 49 Accounting and Financial Reporting for Pollution Remediation Obligations. The
provisions of this Statement are effective for fiscal periods beginning after December 15, 2007.
Statement No. 50 Pension Disclosures-an amendment of GASB Statements No. 25 and No. 27. The
provisions of this Statement are effective for fiscal periods beginning after June 15, 2007.
Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this
Statement are effective for fiscal periods beginning after June 15, 2009.
Statement No. 52 Land and Other Real Estate Held as Investments By Endowments. The provisions of
this Statement are effective for fiscal periods beginning after June 15, 2008.
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84
REQUIRED SUPPLEMENTARY INFORMATION
85
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 10
Page 1 of 2
2007
Revenues:
Taxes
Licenses and permits
Intergovernmental:
Market value homestead credit
All other
Charges for services
Fines and forfeitures
Investment income:
Interest and dividends
Change in fair value
Other revenues
Total revenues
Expenditures:
General government:
Council
Manager
Legal
Finance and elections
Assessing
General government buildings
Total general government
Public safety:
Police and animal control
Fire and emergency management
Total public safety
Public works:
Engineering
Maintenance
Sanitation
Total public works
Other departments:
Parks and recreation
Contingencies
Total other departments
Total expenditures
Revenues over (under) expenditures
Variance with
Budgeted Amounts Final Budget 2006
Actual Positive Actual
Original Final Amounts (Negative) Amounts
$5,854,967 $5,381,794 $5,483,751 $101,957 $5,202,826
120,600 120,600 137,787 17,187 127,827
- 473,173 473,173 - 517,322
1,515,688 1,530,877 1,514,840 (16,037) 1,276,349
488,998 521,556 572,697 51,141 530,473
120,000 120,000 142,568 22,568 129,400
150,000 150,000 114,500 (35,500) 92,984
(75,000) (75,000) 53,332 128,332 (1,622)
40,326 40,326 35,339 (4,9871 9,515
179,484 179,484 205,312 (25,828) 178,893
397,698 397,698 382,712 14,986 377,982
186,500 186,500 168,658 17,842 166,620
636,000 636,000 621,164 14,836 635,673
107,670 107,670 93,109 14,561 96,842
156,139 156,139 114,349 41,790 111,193
1,663,491 1,663,491 1,585,304 78,187 1,567,203
2,911,275 2,959,022 2,863,176 95,846 2,732,133
1,120,835 1,123,035 1,133,615 (10,5801 1,066,929
4,032,110 4,082,057
311,316 311,316
932,346 932,346
1,385,420 1,385,420
1,400,879 1,400,879
3,799,062
224,209 87,107 338,884
974,121 (41,775) 806,609
138,429 3,329 152,258
1,336,759 48,661 1,297,751
1,486,251 (85,3721 1,356,321
(311,157) (313,357) 110,385 423,742 (135,263)
86
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 10
Page 2 of 2
2007
Variance with
Budgeted Amounts Final Budget 2006
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Other financing sources (uses):
Transfers in $470,012 $470,012 $470,512 $500 5469,683
Transfers out ~ISS,ooo~ ~ISS,ooo> ~I97,s99~ ~IZ,s99~ ~88,700~
Total other financing sources (uses) 285,012 285,012 272,913 (12,099) 380,983
Net change in fund balance
Fund balance -beginning
Fund balance -ending
($26,145) ($28,345)
383,298 $411,643 245,720
3,595,848 3,350,128
~~ a~a ~ ~ ti ~~ sas Q~ Q
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE -ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION
(COMPONENT UNIT)
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
2007
Revenues:
Taxes
Intergovernmental
Market value homestead credit
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budgeted Amounts
Original Final
$317,228 $129,203
- 11,695
317,228 140,898
Variance with
Final Budget- 2006
Actual Positive Actual
Amounts (Negative) Amounts
$275,740 $146,537 $223,480
11,695 - 13,113
- - 981
- - (20)
287,435 146,537 237,554
287,435 146,537
(317,228) (317,228) (317,228) -
$0 ($176,330) (29,793) $146,537
(333,838)
($363,631)
237,554
(246,331)
(8,777)
(325,061)
($333,838)
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -NOTE TO RSI
December 31, 2007
Note A BUDGETS
The City of Columbia Heights' budget is legally adopted on a basis consistent with generally accepted
accounting principles. The legal level of budgetary control is at the fund level.
89
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90
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
91
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92
NONMAJOR GOVERNMENTAL FUNDS
93
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94
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 (other than debt of the
proprietary funds.)
CAPITAL PROJECT FUNDS
The Capital Projects Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by proprietary funds.)
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2007
Statement 12
Total
Nonmaj or
Special Debt Capital Governmental
Assets Revenue Service Project Funds
Cash and investments $2,050,481 $2,209,371 $4,134,906 $8,394,758
Receivables:
Accounts 52,811 - 3,061 55,872
Taxes - 42,752 - 42,752
Interest 14,150 9,380 30,130 53,660
Due from other governmental units 231,380 - - 231,380
Interfund receivable 90,076 - 600,000 690,076
Prepayments 3,344 - - 3,344
Real estate held for resale 556,797 - - 556,797
Total assets $2,999,039 $2,261,503 $4,768,097 $10,028,639
Liabilities and Fund Balance
Liabilities:
Accounts payable $100,593 $25,533 $212,143 $338,269
Accrued salaries and withholdings payable 40,454 - - 40,454
Contracts payable -retained percentage 2,360 - 360 2,720
Due to other governmental units 39,447 14,130 - 53,577
Interfund payable 39,244 403,084 - 442,328
Deferred revenue 575,576 34,983 - 610,559
Deposits 22,994 - - 22,994
Total liabilities 820,668 477,730 212,503 1,510,901
Fund balance:
Reserved for:
Prepayments 3,344 - - 3,344
Real estate held for resale 21,113 - - 21,113
Program expenditures 394,059 - - 394,059
Capital expenditures - - 767,499 767,499
Unreserved:
Designated for working capital 48,924 - - 48,924
Designated for maintenance 1,089,637 - - 1,089,637
Designated for debt service - 1,921,200 - 1,921,200
Designated for capital expenditures - - 3,788,095 3,788,095
Undesignated 621,294 (137,427) - 483,867
Total fund balance 2,178,371 1,783,773 4,555,594 8,517,738
Total liabilities and fund balance $2,999,039 $2,261,503 $4,768,097 $10,028,639
96
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2007
Statement 13
Revenues:
Taxes
Tax increment collections
Licenses and permits
Intergovernmental
Charges for services
Park dedication fees
Fines and forfeits
Investment income:
Interest and dividends
Change in fair value
Other revenues
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Capital outlay:
Public safety
Public works
Culture and recreation
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Developer incentives
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Bonds issued
Bond discount
Total other fmancing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Total
Nonmaj or
Special Debt Capital Governmental
Revenue Service Project Funds
$504,748 $ - $ - $504,748
- 1,147,593 - 1,147,593
307,046 - - 307,046
897,245 97,277 - 994,522
973,329 - 274 973,603
- - 46,179 46,179
17,815 - - 17,815
120,113 47,931 154,140 322,184
33.720 22.350 71.820 127.890
2,942,842 1,315,151 272,413 4,530,406
18,573 - - 18,573
14,374 - 5,346 19,720
- - 9,879 9,879
702,744 - 49,798 752,542
1,484,969 333,734 17,719 1,836,422
103,974 - 109,294 213,268
- - 295,290 295,290
18,241 - 117,260 135,501
174,156 - - 174,156
- 792,273 - 792,273
- 219,065 - 219,065
- 124,185 24,028 148,213
- 47,767 - 47,767
2,517,031 1,517,024 628,614 4,662,669
425,811 (201,873) (356,201) (132,263)
334,898 1,416,322 238,837 1,990,057
(343,512) (3,181,646) (185,130) (3,710,288)
- 2,890,000 1,000,000 3,890,000
- (22,108) - (22,108)
(8,614) 1,102,568 1,053,707 2,147,661
417,197 900,695 697,506 2,015,398
1,761,174 883,078 3,858,088 6,502,340
$2,178,371 $1,783,773 $4,555,594 $8,517,738
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98
NONMAJOR
SPECIAL REVENUE FUNDS
The City of Columbia Heights had the following Nonmaj or Special Revenue Funds during the
year:
Community Development Fund 201 -established to account for revenues and expenditures
associated with planning, building inspections, and community development projects within the
city.
Anoka County CDBG Fund 202 -established to account for revenues and expenditures
associated with federal community development block grants passed though Anoka County to
the City.
Cable Television Fund 225 -established to account for revenues and expenditures associated
with the cable television franchise.
Library Fund 240 - established in 1993 to account for revenues and expenditures of the library.
Special Projects Fund 226 -established to monitor revenues from special projects and related
expen itures.
C.H.A.S.E. Fund 250 -established to account for revenues and expenditures associated with a
State grant passed though Independent school District 13 to the City for youth enrichment
programs.
After-School Programs Fund 261 -established to account for revenues and expenditures
associated with youth enrichment services provided to Independent school District 13, by which
the City is a vendor, not a grantee.
D.A.R.E. Program Fund 270 -established to account for revenues and expenditures of DARE
(Drug Abuse Resistance Education) Program.
Confiscated Property Fund 265 -established to account for funds from property confiscated by
the Police Department.
Contributed Projects-Recreation Fund 881- established to monitor contributions for recreational
activities and related expenditures.
99
Contributed Projects-Other Fund 883 -established to monitor contributions and related
expenditures for activities other than recreation.
Flex Benefit Fund 887 -established to account for contributions by employees and related
expenditures for flexible benefits.
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 203 -established to account for revenues and expenditures
associated with low-income federally subsidized senior housing.
Parkview Villa South Fund 213 -established to account for revenues and expenditures
associated with an EDA owned senior housing complex.
Rental Housing Fund 23 5 - established to account for revenues and expenditures of City-
.
owne renta 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 299 -established to account for revenues and
expenditures associated with business development through a business revolving loan
fund.
100
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2007
Statement 14
Page 1 of 2
Community
Development Anoka County Cable
Fund CDBG Television Librarv
Assets
Cash and investments
Receivables:
Accounts
Interest
Due from other governmental units
Interfund receivable
Prepayments
Real estate held for resale
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued salaries and withholdings payable
Contracts payable -retained percentage
Due to other governmental units
Interfund payable
Deferred revenue
Deposits
Total liabilities
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
Total fund balance
Total liabilities and fund balance
$57,600 $ - $99,118 $79,619
- - 39,455 -
410 - 730 1,690
- 51,392 - -
8,442 - - -
- - - 3,344
$66,452 $587,076 $139,303 $84,653
$1,534 $51,079 $ - $7,239
19,266 - - 21,049
- 2,360 - -
- - - 4,097
- 12,185 - -
- 533.324 - -
20,800 598,948 0 32,385
3,344
- - - 48,924
- - 139,303 -
45,652 (11,872) -
45,652 (11,872) 139,303 52,268
$66,452 $587,076 $139,303 $84,653
101
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2007
Special After-School Confiscated
Proiects C.H.A.S.E. Programs Proaerty
Assets
Cash and investments
Receivables:
Accounts
Interest
Due from other governmental units
Interfund receivable
Prepayments
Real estate held for resale
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Accrued salaries and withholdings payable
Contracts payable -retained percentage
Due to other governmental units
Interfund payable
Deferred revenue
Deposits
Total liabilities
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
Total fund balance
Total liabilities and fund balance
$242,980 $59,675 $26,988 $392
1,320 480 170 -
- - 1,237 -
$244,300 $60,155 $28,395 $392
$ - $ - $778 $ -
- - 139 -
- - - 310
42.252 - - -
42,252 0 917 310
- 60,155 27,478 -
202,048 60,155 27,478 82
$244,300 $60,155 $28,395 $392
102
Statement 14
Page 2 of 2
Housing and Economic
Contributed Contributed Redevelopment Development Total
D.A.R.E. Police Grants Projects Projects Flex Auth. Funds Auth. Fund 299 Nonmajor
Program -Other- -Recreation- -Other- Benefit (Component (Component Special Revenue
Fund 270 Fund 272 Fund 881 Fund 883 Fund 887 Unit) Unit) Funds
$42,943 $ - $62,564 $61,733 $45,379 $901,154 $370,336 $2,050,481
- - - - - 13,356 - 52,811
- - 460 - - 5,840 3,050 14,150
- 5,483 - - - 173,268 - 231,380
- - - - - 11,276 70,358 90,076
- - - - - - - 3,344
- - - - - - 21,113 556,797
$42,943 $5,483 $63,024 $61,733 $45,379 $1,104,894 $464,857 $2,999,039
$ - $ - $ - $ - $5,701 $34,262 $ - $100,593
- - - - - - - 40,454
- - - - - - - 2,360
- 5,483 - - - 29,557 - 39,447
- - - - - 27,059 - 39,244
- - - - - - - 575,576
- - - - - 22,994 - 22,994
0 5,483 0 0 5,701 113,872 0 820,668
- - - - - - - 3,344
- - - - - - 21,113 21,113
- - - - - - 306,426 394,059
- - - - - - 48,924
- - - - 950,334 - 1,089,637
42,943 - 63,024 61,733 39,678 40,688 137,318 621,294
42,943 0 63,024 61,733 39,678 991,022 464,857 2,178,371
$42,943 $5,483 $63,024 $61,733 $45,379 $1,104,894 $464,857 $2,999,039
103
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104
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2007
Statement 15
Page 1 of 2
Community
Development Anoka County
Fund CDBG
Cable
Television Librarv
Revenues:
Taxes $ - $ - $ - $504,748
Licenses & permits 307,046 - - -
Intergovernmental - 296,240 - 150,062
Fees/program revenues - 156,808 7,264
Rents - - - -
Fines and Forfeits - - - 15,814
Investment income:
Interest and dividends 2,100 - 3,760 8,640
Change in fair value 980 - 1,750 4,020
Other revenues:
Contributions - - - -
Miscellaneous - - - -
Total revenues 310,126 296,240 162,318 690,548
Expenditures:
Personal services 442,793 - 2,250 462,839
Supplies 7,261 - 285 96,189
Other services and charges 67,787 275,000 13,324 87,094
Capital outlay - 21,240 - -
Total expenditures 517,841 296,240 15,859 646,122
Revenues over (under) expenditures (207,715) 0 146,459 44,426
Other financing sources (uses):
Transfers in 317,228 - - -
Transfers out (223,567) - (100,581) (10,194)
Total other financing sources (uses) 93,661 0 (100,581) (10,194)
Net change in fund balance (114,054) 0 45,878 34,232
Fund balance -beginning 159,706 (11,872) 93,425 18,036
Fund balance -ending $45,652 ($11,872) $139,303 $52,268
105
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2007
Special
Proiects
Revenues:
Taxes $ -
Licenses & permits -
Intergovernmental -
Fees/Program revenues 117,505
Rents 42,441
Fines and Forfeits -
Investment income:
Interest and dividends 6,730
Change in fair value 3,13 0
Other revenues:
Contributions -
Miscellaneous -
Total revenues 169,806
Expenditures:
Personal services -
Supplies -
Other services and charges 36,644
Capital outlay -
Total expenditures 36,644
Revenues over (under) expenditures 133,162
Other financing sources (uses):
Transfers in -
Transfers out (8,670)
Total other financing sources (uses) (8,670)
Net change in fund balance 124,492
Fund balance -beginning 77,556
Fund balance -ending $202,048
After-School Confiscated
C.H.A.S.E. Programs Proaerty
- ~ - ~ -
- 41,727 -
- - 2,001
2,440 890 -
1,140 420 -
3,580 43,037 2,001
- 26,923 -
- 1,783 6,321
44 9,923 900
44 38,629 7,221
3,536 4,408 (5,220)
0 0 0
3,536 4,408 (5,220)
56,619 23,070 5,302
$60,155 $27,478 $82
106
Statement 15
Page 2 of 2
Housing and Economic
Contributed Contributed Redevelopment Development Total
D.A.R.E. Police Grants Projects Projects Flex Auth. Funds Auth. Fund 299 Nonmajor
Program -Other- -Recreation- -Other- Benefit (Component (Component Special Revenue
Fund 270 Fund 272 Fund 881 Fund 883 Fund 887 Unit) Unit) Funds
$ - $ - $ - $ - $ - S - $ - 5504,748
- - - - - - - 307,046
2,058 103,974 - - - 344,911 - 897,245
- - 919 - 8,878 - - 333,101
- - - - - 597,787 - 640,228
- - - - - - - 17,815
- - 2,350 - - 29,880 63,323 120,113
- - 1,100 - - 13,920 7,260 33,720
- - 45,070 30,301 - - - 75,371
- - - - - 13,455 - 13,455
2,058 103,974 49,439 30,301 8,878 999,953 70,583 2,942,842
- - - - - 33,943 - 968,748
2,648 - 13,683 4,191 - 90,885 - 223,246
2,717 - 1,678 245 2,654 530,656 - 1,028,666
- 103,974 18,241 - - 152,916 - 296,371
5,365 103,974 33,602 4,436 2,654 808,400 0 2,517,031
(3,307) 0 15,837 25,865 6,224 191,553 70,583 425,811
9,000 - 8,670 - - - - 334,898
- - - (500) - - - (343,512)
9,000 0 8,670 (500) 0 0 0 (8,614)
5,693 0 24,507 25,365 6,224 191,553 70,583 417,197
37,250 - 38,517 36,368 33,454 799,469 394,274 1,761,174
$42,943 $0 $63,024 $61,733 539,678 5991,022 $464,857 52,178,371
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -COMMUNITY DEVELOPMENT FUND 201
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2007
With Comparative Totals For the Year Ended December 3 1, 2006
Statement 16
2007
Revenues:
Licenses & permits
Charges for services
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Budgeted Amounts Final Budget- 2006
Actual Positive Actual
Original Final Amounts (Negative) Amounts
$599,983 $559,983 $307,046 ($252,937) $469,730
- - 2,089
- - 2,100 2,100 7,040
- - 980 980 (120)
465,571 465,571 442,793 22,778 421,264
14,597 14,597 7,261 7,336 13,124
602,819 602,819 517,841 84,978 488,507
(2,836) (42,836) (207,715) (164,879) (9,768)
317,228 317,228 317,228 - 247,331
(314,392) (223,567) 90,825 (214,593)
$314,392 ($40,000) (114,054) ($74,054)
$45,652
22,970
$159,706
108
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY CDBG FUND 202
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 3 1, 2007
With Comparative Amounts For the Year Ended December 31, 2006
Statement 17
Revenues:
Intergovernmental
Charges for services
Total revenues
Expenditures:
Other services and charges
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other fmancing sources (uses):
Transfers in
Sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance (deficit) -beginning
Fund balance (deficit) -ending
2007
$296,240
296,240
275,000
21,240
296,240
0
0
0 31,027
(11,872) (42,899)
($11,872) ($11,872)
2006
$64,000
1,000
65,000
64,000
64,000
1,000
16,763
13,264
30,027
109
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CABLE TELEVISION FUND 225
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 3 1, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
2007
Revenues:
Franchise fees
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Other fmancing sources (uses):
Transfers out
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budgeted Amounts
Original Final
$145,000 $145,000
Statement 18
Variance with
Final Budget- 2006
Actual Positive Actual
Amounts (Negative) Amounts
$156,808 $11,808 $150,031
3.760 3.760 1.780
145,000 145,000 162,318 17,318 151,781
6,443 6,443 2,250 4,193 2,301
1,650 1,650 285 1,365 1,077
61,400 61,400 13,324 48,076 8,763
20,000 20,000 - 20,000 -
89,493 89,493 15,859 73,634 12,141
55,507 55,507 146,459 90,952 139,640
(100,581) (100,581) (100,581) - (97,967)
($45,074) ($45,074) 45,878 $90,952 41,673
$139,303 $93,425
110
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -LIBRARY FUND 240 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
Revenues:
Taxes
Intergovernmental
Charges for services
Fines
Investment income:
Interest and dividends
Change in fair value
Other revenues:
Miscellaneous
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance -beginning
Fund balance -ending
2007
Variance with
Budgeted Amounts Final Budget- 2006
Actual Positive Actual
Original Final Amounts (Negative) Amounts
$504,748 $504,748 $504,748 $ - $478,319
150,062 150,062 150,062 - 150,062
8,500 8,500 7,264 (1,236) 7,712
14,000 14,000 15,814 1,814 12,372
4,000 4,000 8,640 4,640 7,330
- - 4,020 4,020 (130)
750 750 - (750) -
682,060 682,060 690,548 8,488 655,665
481,794 481,794 462,839 18,955 453,459
93,944 93,944 96,189 (2,245) 95,154
92,163 92,163 87,094 5,069 85,123
5,000 5,000 - 5,000 -
672,901 672,901 646,122 26,779 633,736
9,159 9,159 44,426 35,267 21,929
(10,194) (10,194) (10,194) - (9,848)
($1,035) ($1,035) 34,232 $35,267 12,081
$52,268
$18,036
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -SPECIAL PROJECTS FUND 226 Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 31, 2006
2007 2006
Revenues:
Fees/program revenue $117,505 $14,370
Rents 42,441 3 9, 016
Investment income:
Interest and dividends 6,730 3,970
Change in fair value 3,130 (70)
Total revenues 169,806 57,286
Expenditures:
Other services and charges 36,644 63,934
Revenues over (under) expenditures 133,162 (6,648)
Other financing sources (uses):
Transfers out (8,670) -
Net change in fund balance 124,492 (6,648)
Fund balance -beginning 77,556 84,204
Fund balance -ending $202,048 $77,556
112
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - C .H .A .S .E . FUND 250
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 31, 2006
Statement 21
2007 2006
Revenues:
Investment income:
Interest and dividends $2,440 $2,010
Change in fair value 1,140 (40)
Total revenues 3,580 1,970
Expenditures 44 36
Revenues over expenditures 3,536 1,934
Fund balance -beginning 56,619 54,685
Fund balance -ending $60,155 $56,619
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -TWENTY-FIRST CENTURY GRANT FUND 261
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 31, 2006 Statement 22
2007 2006
Revenues:
Fees/program revenues $41,727 $50,503
Investment income:
Interest and dividends 890 460
Change in fair value 420 (10)
Total revenues 43,037 50,953
Expenditures:
Personal services 26,923 27,248
Supplies 1,783 1,971
Other services and charges 9,923 17,316
Total expenditures 38,629 46,535
Revenues over expenditures 4,408 4,418
Fund balance -beginning 23,070 18,652
Fund balance -ending $27,478 $23,070
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CONFISCATED PROPERTY FUND 265
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 31, 2006
Statement 23
2007 2006
Revenues:
Forfeitures $2,001 $3,890
Expenditures:
Supplies 6,321 4,099
Other services and charges 900 965
Total expenditures 7,221 5,064
Revenues over (under) expenditures (5,220) (1,174)
Fund balance -beginning 5,302 6,476
Fund balance -ending $82 $5,302
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - D.A.R.E. PROGRAM FUND 270
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
Statement 24
2007
Revenues:
Intergovernmental
Expenditures:
Supplies
Other services and charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Budgeted Amounts Final Budget- 2006
Actual Positive Actual
Original Final Amounts (Negative) Amounts
3,200
2,175
5,375
(5,375)
3,200 2,648 552 3,596
2.175 2.717 (5421 1.242
5,375 5,365 10 4,838
(5,375) (3,307) 2,068
9,000 9,000 -
$3,625 $3,625
S,by3 ~Z,U68
$42,943
(3,135)
5,865
$37,250
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -POLICE GRANTS OTHER -FUND 272
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 31, 2006
Statement 25
2007
Revenues:
Intergovernmental $103,974
Expenditures:
Capital outlay 103,974
Revenues over expenditures 0
Fund balance -beginning -
Fund balance -ending $0
2006
$ -
0
$0
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -RECREATION CONTRIBUTED PROJECTS -FUND 881
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 3 1, 2007
With Comparative Amounts For the Year Ended December 31, 2006 Statement 26
2007 2006
Revenues:
Fees/program revenue $919 $616
Investment income:
Interest and dividends 2,350 3,730
Change in fair value 1,100 (70)
Other revenue:
Contributions 45,070 41,600
Total revenues 49,439 45,876
Expenditures:
Supplies 13,683 20,042
Other services and charges 1,678 6,275
Capital outlay 18,241 85,493
Total expenditures 33,602 111,810
Revenues over (under) expenditures 15,837 (65,934)
Other fmancing sources (uses):
Transfers in 8,670 -
Net change in fund balance 24,507 (65,934)
Fund balance -beginning 38,517 104,451
Fund balance -ending $63,024 $38,517
118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CONTRIBUTED PROJECTS OTHER -FUND 883
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 3 1, 2007
With Comparative Amounts For the Year Ended December 31, 2006 Statement 27
2007 2006
Revenues:
Contributions $30,301 $47,079
Expenditures:
Supplies 4,191 3,950
Other services and charges 245 1,054
Capital outlay - 40,504
Total expenditures 4,436 45,508
Revenues over (under) expenditures 25,865 1,571
Other fmancing sources (uses):
Transfers out (500) (1,000)
Net change in fund balance 25,365 571
Fund balance -beginning 36,368 35,797
Fund balance -ending $61,733 $36,368
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -FLEX BENEFIT FUND 887 Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Amounts For the Year Ended December 3 1, 2006
2007 2006
Revenues:
Fees/program revenue $8,878 $9,613
Expenditures:
Other services and charges 2,654 2,652
Revenues over expenditures 6,224 6,961
Other financing sources (uses):
Transfers out - (25,000)
Net change in fund balance 6,224 (18,039)
Fund balance -beginning 33,454 51,493
Fund balance -ending $39,678 $33,454
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 29
COMBINING BALANCE SHEET
December 31, 2007
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 23 5 Authority
Assets
Cash and investments $553,596 $306,870 $40,688 $901,154
Receivables:
Accounts 9,631 3,725 - 13,356
Interest 4,250 1,590 - 5,840
Due from other governmental units 173,268 - - 173,268
Interfund receivable - 11,276 - 11,276
Total assets $740,745 $323,461 $40,688 $1,104,894
Liabilities and Fund Balance
Liabilities:
Accounts payable $31,947 $2,315 $ - $34,262
Due to other governmental units 18,222 11,335 - 29,557
Interfund payable 26,858 201 - 27,059
Deposits 14,212 8,782 - 22,994
Total liabilities 91,239 22,633 0 113,872
Fund balance:
Unreserved:
Designated for maintenance 649,506 300,828 - 950,334
Undesignated - - 40,688 40,688
Total fund balance 649,506 300,828 40,688 991,022
Total liabilities and fund balance $740,745 $323,461 $40,688 $1,104,894
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 30
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 235 Authority
Revenues:
Intergovernmental $344,911 $ - $ - $344,911
Rents 314,558 283,229 - 597,787
Investment income:
Interest and dividends 21,740 8,140 - 29,880
Change in fair value 10,130 3,790 - 13,920
Other revenues:
Miscellaneous 8,932 4,523 - 13,455
Total revenues 700,271 299,682 0 999,953
Expenditures:
Personal services 22,463 11,480 - 33,943
Supplies 70,797 20,088 - 90,885
Other services and charges 367,988 162,668 - 530,656
Capital outlay 127,216 25,700 - 152,916
Total expenditures 588,464 219,936 0 808,400
Revenues over (under) expenditures 111,807 79,746 0 191,553
Fund balance -beginning 537,699 221,082 40,688 799,469
Fund balance -ending $649,506 $300,828 $40,688 $991,022
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY- Statement 31
PARKVIEW VILLA NORTH FUND 203
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 3 1, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
2007
Revenues:
Intergovernmental revenue
Rents
Investment income:
Interest and dividends
Change in fair value
Other revenues
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Fund balance -beginning
Fund balance -ending
Budget Amounts
Original Final
$222,241 $222,241
298,105 298,105
5,000 5,000
Variance with
Final Budget- 2006
Actual Positive Actual
Amounts (Negative) Amounts
$344,911 $122,670 $263,739
314,558 16,453 301,897
21,740 16,740 16,020
10,130 10,130 (280)
528,446 528,446 700,271 171,825 585,625
- - 22,463 (22,463) 22,533
21,765 21,765 70,797 (49,032) 46,768
397,098 397,098 367,988 29,110 377,428
101,041 101,041 127,216 (26,175) 115,311
519,904 519,904 588,464 (68,560) 562,040
$8,542 $8,542 111,807 $103,265 23,585
537,699 514,114
$649,506 $537,699
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY - Statement 32
PARKVIEW VILLA SOUTH FUND 213
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
2007
Revenues:
Rents
Investment income:
Interest and dividends
Change in fair value
Other
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Fund balance -beginning
Fund balance -ending
Budgeted Amounts
Original Final
$276,013 $276,013
2,500 2,500
Variance with
Final Budget- 2006
Actual Positive Actual
Amounts (Negative) Amounts
$283,229 $7,216 $266,128
8,140 5,640 5,210
3.790 3.790 (901
280,470 280,470 299,682 19,212 274,591
- - 11,480 (11,480) 11,480
11,500 11,500 20,088 (8,588) 11,198
201,139 201,139 162,668 38,471 173,718
30,000 30,000 25,700 4,300 -
242,639 242,639 219,936 22,703 196,396
$37,831 $37,831 79,746 $41,915 78,195
$300,828
$221,082
124
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY
RENTAL HOUSING FUND 235
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Actual Amounts For the Year Ended December 3 1, 2006
Statement 33
2007
Revenues:
Investment income:
Interest and dividends $ -
Change in fair value -
Total revenues 0
Expenditures:
Other services and charges -
Revenues over expenditures 0
Fund balance -beginning 40,688
2006
$1,440
(30)
1,410
1,410
39,278
Fund balance -ending $40,688 $40,688
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT)
BUSINESS REVOLVING LOAN FUND 299
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2007
With Comparative Totals For the Year Ended December 3 1, 2006
Statement 34
2007 2006
Revenues:
Fees/program revenues $ - $526
Investment income:
Interest and dividends 63,323 13,210
Change in fair value 7,260 (230)
Total revenues 70,583 13,506
Expenditures - -
Revenues over expenditures 70,583 13,506
Fund balance -beginning 394,274 380,768
Fund balance -ending $464,857 $394,274
126
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following kinds of Nonmaj or Debt Service Funds during
the year:
Bond Debt Service Funds -are separate funds used to account for the revenues and expenditures
of each separate bond issue.
Tax Increment Financing -are separate funds used to account for the revenues and
expenditures of each separate Tax Increment Financing District.
127
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128
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2007
Statement 35
Page 1 of 2
G.O. G.O. G.O.
G.O. Improvement/ Tax Increment Improvement/
Improvement Revenue Refunding Revenue
Bonds 1999A Bonds 2003A Bonds 2004A Bonds 2006A
Fund 3 87 Fund 3 8 8 Fund 3 50 Fund 340
Assets
Cash and investments $397,679 $69,182 $27,916 $574,268
Receivables:
Taxes - - - -
Interest 3,020 - 1,220 260
Interfund capital construction lease receivable - - - -
Total assets $400,699 $69,182 $29,136 $574,528
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ -
Due to other governmental units - - - -
Interfundpayable - - - -
Deferredrevenue:
Property taxes -delinquent - - - -
Total liabilities 0 0 0 0
Fund balance:
Unreserved:
Designated for debt service 400,699 69,182 29,136 574,528
Undesignated - - -
Total fund balance 400,699 69,182 29,136 574,528
Total liabilities and fund balance $400,699 $69,182 $29,136 $574,528
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2007
Tax Sheffield TIF Multi-Use
Increment TIF Redevelopment TIF
Bonds Redevelopment Plan District #2
Assets
Cash and investments
Receivables:
Taxes
Interest
Interfund capital construction lease receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Interfund payable
Deferred revenue:
Property taxes -delinquent
Total liabilities
Fund balance:
Unreserved:
Designated for debt service
Undesignated
Total fund balance
Total liabilities and fund balance
$374,228 $48,184 $52,060 $5,295
38,227 3,310 19 -
1.370 550 180 -
$413,825 $52,044 $52,259 $5,295
$ - $ - $379 $ -
14,130 - - -
- 332,726 70,358 -
49,113 332,726 70,737
0
364.712 - - -
130
5,295
$5,295
Statement 35
Page 2 of 2
TIF
Medtronic
Fund 378
$ -
$0
$ -
0
0
$0
TIF
Scattered Site
Fund 370 & 379
$155,163
385
890
$156,438
$ -
0
156,438
156,43 8
$156,438
TIF
Transition
Block
Fund 389
$51,454
190
$51,644
$25,154
25,154
26,490
26,490
$51,644
TIF
4747 Central
Avenue
Fund 371
$243,371
811
980
$245,162
$ -
0
245,162
245,162
$245,162
Economic Dev.
Authority
(Component Unit)
TIF Revenue
Bonds 2007
Fund 373
$210,571
720
$211,291
$ -
0
211,291
211,291
$211,291
Total
Nonmaj or Debt
Service Funds
$2,209,371
42,752
9,380
$2,261,503
$25,533
14,130
403,084
34,983
477,730
1,921,200
(137,427)
1,783,773
$2,261,503
131
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132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 36
CHANGES IN FUND BALANCE Page 1 of 2
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2007
G.O. G.O. G.O.
G.O. Improvement/ Tax Increment Improvement/
Improvement Revenue Refunding Revenue
Bonds 1999A Bonds 2003A Bonds 2004A Bonds 2006A
Fund 387 Fund 388 Fund 350 Fund 340
Revenues:
Tax increment collections $ - $ - $ - $ -
Intergovernmental - - - -
Investment income:
Interest and dividends 15,430 - 6,240 1,350
Change in fair value 7,190 - 2,910 630
Total revenues 22,620 0 9,150 1,980
Expenditures:
Current:
Other services and charges - - - -
Debtservice:
Principal retirement 90,000 92,273 610,000 -
Interestand fiscal charges 12,211 35,098 33,906 71,528
Issuance costs - - - -
Developer incentives - - - -
Total expenditures 102,211 127,371 643,906 71,528
Revenues over (under) expenditures (79,591) (127,371) (634,756) (69,548)
Other financing sources (uses):
Transfers in 25,421 103,025 643,800 644,076
Transfers out - - - -
Bonds issued - - - -
Bonddiscount - - - -
Total other financing sources (uses) 25,421 103,025 643,800 644,076
Net change in fund balance (54,170) (24,346) 9,044 574,528
Fund balance (deficit) -beginning 454,869 93,528 20,092 -
Fund balance (deficit) -ending $400,699 $69,182 $29,136 $574,528
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2007
Revenues:
Tax increment collections
Intergovernmental
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Current:
Other services and charges
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Developer incentives
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Bonds issued
Bond discount
Total other financing sources (uses)
Net change in fund balance
Fund balance (deficit) -beginning
Fund balance (deficit) -ending
Tax Sheffield TIF Multi-Use
Increment TIF Redevelopment TIF
Bonds Redevelopment Plan District #2
Fund 3 76 Fund 3 77 Fund 3 85 Fund 3 86
$755,683 $69,501 $27,898 $1,064
85,275 5,448 476 5,442
6,754 2,800 910 -
3,260 1,310 420 -
850,972 79,059 29,704 6,506
35,766 618 618 264
- 18,579 47,743 -
- - 759 -
3 5,766 19,197 49,120 264
815,206 59,862 (19,416) 6,242
(643,800) - - -
(643, 800) 0 0 0
171,406 59,862 (19,416) 6,242
193,306 (340,544) 938 (947)
$364,712 ($280,682) ($18,478) $5,295
134
Statement 36
Page 2 of 2
Economic
Dev. Authority
TIF TIF (Component Unit)
TIF TIF Transition 4747 Central TIF Revenue Total Nonmajor
Medtronic Scattered Site Block Avenue Bonds 2007 Debt Service
Fund 378 Fund 370 & 379 Fund 389 Fund 371 Fund 373 Funds
$ - $60,018 $56,033 $177,396 $ - $1,147,593
- - - 636 - 97,277
237 4,550 950 5,010 3,700 47,931
- 2,120 440 2,340 1,730 22,350
237 66,688 57,423 185,382 5,430 1,315,151
293,983 1,809 676 - - 333,734
- - - - - 792,273
- - - - - 219,065
- - - - 124,185 124,185
- - 47,008 - - 47,767
293,983 1,809 47,684 0 124,185 1,517,024
(293,746) 64,879 9,739 185,382 (118,755) (201,873)
- - - - - 1,416,322
- - - - (2,537,846) (3,181,646)
- - - - 2,890,000 2,890,000
- - - - (22,108) (22,108)
0 0 0 0 330,046 1,102,568
(293,746) 64,879 9,739 185,382 211,291 900,695
293,746 91,559 16,751 59,780 - 883,078
$0 $156,438 $26,490 $245,162 $211,291 $1,783,773
135
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136
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmaj or Capital Project Funds during the
year:
Capital Improvement Fund 3 90 & 401 -used to account for Capital Project Funds whereby
funding is provided by a number of internal and external sources.
Downtown Parking Maintenance Fund 290 & 405 -used for maintenance of the West Side
Par ing.
Capital Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City
identified as Sheffield Neighborhood.
Capital Improvement General Government Buildings Fund 411 -used to fund building capital
assets.
Capital Improvement Parks Fund 412 -used to account for improvements in City parks. This
includes Park Dedication Fees, the use of which is limited by state statute to park improvements.
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 and limited to
that purpose by state statute. The original source of this funding was excess funding in a fire
pension p an.
Capital Equipment Cable TV Fund 440 - used to fund replacement of cable capital assets.
Capital Buildin L.~ ibrary Fund 450 - used to fund replacement of the library building.
Anoka Co JLEC Police Computer Equipment Fund 481- used to account for the City's share of
a j oint purchasing agreement. Under the terms of certain bonds issued by Anoka County,
expenditures from this fund are limited to the costs of information systems used for law
enforcement.
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2007
Downtown Capital Capital
Capital Parking Sheffield Improvement
Improvement Maintenance Redevelopment Gen. Govt. Bldgs.
Fund 390 & 401 Fund 290 & 405 Fund 410 Fund 411
Assets
Cash and investments $45,015 $161,412 $962,253 $845,967
Receivables:
Accounts - - - 3,061
Interest 60 2,080 7,700 6,560
Interfund receivable 600,000 - - -
Total assets $645,075 $163,492 $969,953 $855,588
Liabilities and Fund Balance
Liabilities:
Accounts payable $9,577 $ - $ - $102,695
Contracts payable -retained percentage 360 - - -
Total liabilities 9,937 0 0 102,695
Fund balance:
Reserved for:
Capital expenditures - - - -
Unreserved:
Designated for capital expenditures 635,138 163,492 969,953 752,893
Total fund balance 635,138 163,492 969,953 752,893
Total liabilities and fund balance $645,075 $163,492 $969,953 $855,588
138
Statement 37
Capital Capital Capital Capital Capital Anoka Co JLEC Total
Improvement Improvement Infrastructure Equipment Equipment Building Police Computer Nonmajor
Parks PVVS Replacement Fire Cable TV Library Equipment Capital
Fund 412 Fund 414 Fund 430 Fund 439 Fund 440 Fund 450 Fund 481 Project Funds
$795,015 $28,515 $774,467 $241,021 $81,241 $200,000 $ - $4,134,906
- - - - - - - 3,061
6,420 230 4,260 2,170 650 - - 30,130
- - - - - - - 600,000
$801,435 $28,745 $778,727 $243,191 $81,891 $200,000 $0 $4,768,097
$35,510 $ - $ - $64,361 $ - $ - $ - $212,143
- - - - - - - 360
35,510 0 0 64,361 0 0 0 212,503
261,527 - 505,972 - - - - 767,499
504,398 28,745 272,755 178,830 81,891 200,000 - 3,788,095
765,925 28,745 778,727 178,830 81,891 200,000 0 4,555,594
$801,435 $28,745 $778,727 $243,191 $81,891 $200,000 $0 $4,768,097
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2007
Downtown Capital Capital
Capital Parking Sheffield Improvement
Improvement Maintenance Redevelopment Gen. Govt. Bldgs.
Fund 390 & 401 Fund 290 & 405 Fund 410 Fund 411
Revenues:
Charges for services
Park dedication fees
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Other services and charges
Capital outlay
Debt service:
Issuance costs
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Bonds issued
Total other financing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
$274 $
280 10,650
130 4,960
684 15,610
9,577 17,719
9,577
(8,893)
0
(8,893)
644,031
$635,138
$ - $ -
39,390 33,540
18,350 15,630
57,740 49,170
- 73,404
0 73,404
57,740 (24,234)
- 88,837
0 88,837
57,740 64,603
912,213 688,290
$969,953 $752,893
17,719
(2,109)
0
(2,109)
165,601
$163,492
140
Statement 38
Capital Capital Capital Capital Capital Anoka Co JLEC Total
Improvement Improvement Infrastructure Equipment Equipment Building Police Computer Nonmajor
Parks PVVS Replacement Fire Cable TV Library Equipment Capital
Fund 412 Fund 414 Fund 430 Fund 439 Fund 440 Fund 450 Fund 481 Project Funds
$ - $ - $ - $ - $ - $ - $ - $274
46,179 - - - - - - 46,179
32,820 1,170 21,770 11,080 3,330 - 110 154,140
15,300 540 10,150 5,160 1,550 - 50 71,820
94,299 1,710 31,920 16,240 4,880 0 160 272,413
49,798 -
54,276 -
104,074
(9,775)
50,000
302 2,116 -
284,870 109,294 -
0 309,200 111,410
1,710 (277,280) (95,170)
- 100,000 -
- (185.1301 -
50,000 0 914,870 0
40,225 1,71 U 637,590 (95,170)
0
4,880
0
4,880
- 3,230 82,742
- - 521,844
0 3,230 628,614
0 (3,070) (356,201)
- - 238,837
- - (185.1301
0
U
$765,925 $28,745 $778,727 $178,830 $81,891 $200,000
0 1,053,707
(3,070) 697,506
$0 $4,555,594
141
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42
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 financed and/or 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 -used to account for revenues and expenses associated with services to area
rest ents.
Sewer Utility -used to account for revenues and expenses associated with sewer disposal
within the City.
Refuse Utility -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 isposa .
Liquor Fund -used to account for revenues and expenses associated with the operation of three
off sale liquor stores.
143
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 31, 2006
Statement 39
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for
uncollectables)
Interest
Interfund receivable
Inventory - at cost
Total current assets
Noncurrent assets:
Capital assets:
Land
Buildings
Equipment
Infrastructure
Construction in process
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of
accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Due to other governmental 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
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2007 2006
$ - $ - $ - $476,579 $476,579 $359,725
477,747 - - - 477,747 450,052
- 3,140 - 2,730 5,870 5,350
~ 7~1 X99 RR~ - - 4~~ hl l ~R7 7~~
484,049 403,020 0 479,309 1,366,378 1,205,483
45,223 - - - 45,223 45,223
559,826 - - - 559,826 559,826
456,629 - - - 456,629 406,715
6,744,007 - - - 6,744,007 6,458,557
- - 418,310 - 418,310 513,314
7,805,685 0 418,310 0 8,223,995 7,983,635
(3,205,148) - - - (3,205,148) (3,013,614)
4,600,537 0 418,310 0 5,018,847 4,970,021
4,600,537 0 418,310 0 5,018,847 4,970,021
5,084,586 403,020 418,310 479,309 6,385,225 6,175,504
23,819 45,582 1,967 - 71,368 34,695
13,468 - - - 13,468 12,231
77,582 - 78,071 - 155,653 188,742
581,051 - 325,367 - 906,418 658,246
- - - 34,574 34,574 21,833
1,000 - - - 1,000 2,000
1,027 - - - 1,027 1,228
- - - 230,037 230,037 179,697
697,947 45,582 405,405 264,611 1,413,545 1,098,672
18,432 - - - 18,432 16,837
- - - 1,954,729 1,954,729 2,184,774
18,432 0 0 1,954,729 1,973,161 2,201,611
716,379 45,582 405,405 2,219,340 3,386,706 3,300,283
4,600,537 - 418,310 (2,184,766) 2,834,081 2,605,550
- - - 290,186 290,186 241,801
(232,330) 357,438 (405,405) 154,549 (125,748) 27,870
$4,368,207 $357,438 $12,905 ($1,740,031) $2,998,519 $2,875,221
144
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 40
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2007 2006
Operating revenues:
Charges for services:
Customer services $104,955 $ - $ - $ - $104,955 $156,272
Penalties 49,107 - - - 49,107 41,574
Charges for sales: -
Water 2,031,797 - - - 2,031,797 1,843,528
Meter 19,911 - - 68,210 88,121 99,274
Total operating revenues 2,205,770 0 0 68,210 2,273,980 2,140,648
Operating expenses:
Cost of sales and services 1,001,074 - - - 1,001,074 986,580
Distribution 603,848 - 176,894 - 780,742 759,180
Administration 18,472 - - - 18,472 17,263
Depreciation 201,021 - - - 201,021 189,738
Total operating expenses 1,824,415 0 176,894 0 2,001,309 1,952,761
Net income (loss) from operations 381,355 0 (176,894) 68,210 272,671 187,887
Nonoperating revenues (expenses):
Investment income:
Interest and dividends - 16,060 - 13,940 30,000 22,300
Change in fair value - 7,480 - 6,500 13,980 (390)
Intergovernmental - - - - - 22,822
Miscellaneous revenues - 2,892 - - 2,892 1,000
Interest and fiscal charges - - - (84,432) (84,432) (49,400)
Total nonoperating revenues (expenses) 0 26,432 0 (63,992) (37,560) (3,668)
Net income (loss) before transfers 381,355 26,432 (176,894) 4,218 235,111 184,219
Transfers in 344,853 25,000 171,126 281,992 822,971 1,858,255
Transfers out (589,931) (59,403) (285,450) - (934,784) (1,971,085)
Total transfers (245,078) (34,403) (114,324) 281,992 (111,813) (112,830)
Change in net assets 136,277 (7,971) (291,218) 286,210 123,298 71,389
Total net assets -beginning 4,231,930 365,409 304,123 (2,026,241) 2,875,221 2,803,832
Total net assets -ending $4,368,207 $357,438 $12,905 ($1,740,031) $2,998,519 $2,875,221
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 31, 2006
Statement 41
2007 2006
Cash flows from operating activities:
Cash received from customers $2,245,285 $2,090,336
Cash paid to suppliers for goods and services (1,458,749) (1,438,161)
Cash payments to employees for services (380,821) (286,658)
Net cash flows from operating activities 405,715 365,517
Cash flows from noncapital financing activities:
Transfers in 171,126 231,227
Transfers out (282,939) (344,057)
Interfund receivable repaid by (advanced to) other funds (15,911) (10,831)
Interfund payable (repaid to) advanced by other funds 248,172 (793,182)
Intergovernmental - 22,822
Net cash flows from noncapital financing activities 120,448 (894,021)
Cash flows from capital and related financing activities:
Acquisition of capital assets (204,265) (271,148)
Proceeds from sales of capital assets 2,892 1,000
Transfers in 651,845 1,627,028
Transfers out (651,845) (1,627,028)
Principal payments -bonds (179,705) (174,480)
Issuance of bonds - 1,077,536
Interest and fiscal charges (71,691) (59,371)
Net cash flows from capital and related financing activities (452,769) 573,537
Cash flows from investing activities:
Investment income:
Interest and dividends 29,480 21,243
Change in fair value 13,980 (390)
Net cash flows from investing activities 43,460 20,853
Net increase (decrease) in cash and cash equivalents 116,854 65,886
Cash and cash equivalents -January 1 359,725 293,839
Cash and cash equivalents -December 31 $476,579 $359,725
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $272,671 $187,887
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 201,021 189,738
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (27,695) (52,312)
(Increase) decrease in inventory, at cost 85 (1,000)
Increase (decrease) in accounts payable 36,673 26,244
Adjustment for nonoperating portion (45,582) (21,923)
Increase (decrease) in accrued salaries and withholdings payable 1,237 1,496
Increase (decrease) in due to other governmental units (33,089) 30,924
Increase (decrease) in deposits (1,000) 2,000
Increase (decrease) in compensated absences payable 1,394 2,463
Total adjustments 133,044 177,630
Net cash flows from operating activities $405,715 $365,517
Noncash capital and related financing activities:
Capital assets purchased/constructed on account $45,582 $21,923
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 42
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for
uncollectibles)
Interest
Due from other governmental units
Interfund receivables
Prepayments
Total current assets
Noncurrent assets:
Due from other governmental units
Capital assets:
Land
Buildings
Equipment
Infrastructure
Construction in process
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of
accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Contracts payable -retained percentage
Accrued interest payable
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
2007 2006
$635,676 $438,725 $350,392 $5,772 $1,430,565 $1,545,765
311,781 - - - 311,781 287,590
11,080 3,410 2,630 30 17,150 16,469
7,586 - - - 7,586 -
510,142 - 332,726 - 842,868 841,225
70,075 - - - 70,075 68,308
1,546,340 442,135 685,748 5,802 2,680,025 2,759,357
82,470 - - - 82,470 107,873
36,586 - - - 36,586 36,586
100,426 - - - 100,426 100,426
707,615 - - - 707,615 717,103
4,804,853 - - - 4,804,853 4,726,422
- - 206,467 - 206,467 176,153
5,649,480 0 206,467 0 5,855,947 5,756,690
(3,435,854) - - (3,435,854) (3,276,619)
2,213,626 0 206,467 0 2,420,093 2,480,071
2,296,096 0 206,467 0 2,502,563 2,587,944
3,842,436 442,135 892,215 5,802 5,182,588 5,347,301
4,216 - 8,990 - 13,206 5,242
10,598 - 1,585 - 12,183 10,346
- 11,995 - 11,995 -
- - - 235 235 306
1,525 - - - 1,525 1,866
- - - 4,356 4,356 4,158
16,339 0 22,570 4,591 43,500 21,918
27,361 - - - 27,361 25,577
- - - 9,122 9,122 13,482
27,361 0 0 9,122 36,483 39,059
43,700 - 22,570 13,713 79,983 60,977
2,213,626 206,467 (13,478) 2,406,615 2,462,431
- - - 4,839 4,839 4,743
1,585,110 442,135 663,178 728 2,691,151 2,819,150
$3,798,736 $442,135 $869,645 ($7,911) $5,102,605 $5,286,324
147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2007 2006
Operating revenues:
Charges for sales and services:
Sewer service charges
Operating expenses:
Cost of sales and services
Collection
Administration
Depreciation
Total operating expenses
Net income (loss) from operations
Nonoperating revenues (expenses)
Investment income:
Interest and dividends
Change in fair value
Miscellaneous revenues
Interest and fiscal charges
Total nonoperating
revenues (expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Total transfers
Change in net assets
Net assets -beginning
Net assets -ending
$1,419,252 $ - $ - $ - $1,419,252 $1,368,925
819,698 - - - 819,698 794,522
296,674 - 340,060 - 636,734 387,156
18.124 - - - 18.124 14.256
1,303,219
116,033
0 340,060
U (34U,U6U)
0 1,643,279 1,364,592
0 (224,027) 4,333
60,975 17,460 32,029 150 110,614 94,890
26,400 8,130 6,270 70 40,870 (1,220)
- 1,226 - - 1,226 -
- - - (590) (590) (757)
87,375 26,816 38,299 (370) 152,120 92,913
203,408 26,816 (301,761) (370) (71,907) 97,246
78,430 25,000 339,584 4,800 447,814 213,410
(481,196) - (78,430) - (559,626) (326,240)
(402,766) 25,000 261,154 4,800 (111,812) (112,830)
(199,358) 51,816 (40,607) 4,430 (183,719) (15,584)
3,998,094 390,319 910,252 (12,341) 5,286,324 5,301,908
148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 44
2007 2006
Cash flows from operating activities:
Cash received from customers 51,412,878 51,364,568
Cash paid to suppliers for goods and services (1,220,773) (953,891)
Cash payments to employees for services (232,311) (243,794)
Net cash flows from operating activities (40,206) 166,883
Cash flows from noncapital financing activities:
Transfers in 339,584 56,384
Transfers out (451,396) (169,214)
Interfund receivable repaid by (advanced to) other funds (1,643) 858,905
Net cash flows from noncapital financing activities (113,455) 746,075
Cash flows from capital and related financing activities:
Acquisition of capital assets (108,745) (113,978)
Proceeds of capital asset sales 1,226 -
Transfers in 108,230 157,026
Transfers out (108,230) (157,026)
Principal payments -bonds (4,162) (3,965)
Interest and fiscal charges (661) (824)
Net cash flows from capital and related financing activities (112,342) (118,767)
Cash flows from investing activities:
Investment income:
Interest and dividends 109,933 94,535
Change in fair value 40,870 (1,220)
Net cash flows from investing activities 150,803 93,315
Net increase (decrease) in cash and cash equivalents (115,200) 887,506
Cash and cash equivalents -January 1 1,545,765 658,259
Cash and cash equivalents -December 31 $1,430,565 51,545,765
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) ($224,027) 54,333
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 168,723 168,658
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (24,191) (34,782)
(Increase) decrease in due from other governmental units 17,817 30,425
(Increase) decrease in prepayments (1,767) (2,098)
Increase (decrease) in accounts payable 7,964 (1,642)
Increase (decrease) in accrued salaries and withholdings payable 1,837 774
Increase (decrease) in contracts payable -retained percentage 11,995 -
Increase (decrease) compensated absences payable 1,443 1,215
Total adjustments 183,821 162,550
Net cash flows from operating activities (540,206) 5166,883
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 45
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for uncollectibles)
Interest
Due from other governmental units
Interfund receivable
Total current assets
Noncurrent assets:
Capital assets:
Buildings
Equipment
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
2007 2006
$247,872 $244,795
313,040 300,275
2,210 2,270
36,060 -
1,427 1,265
600,609 548,605
6,000
108,690 6,000
108,690
114,690
(96,806) 114,690
(85,637)
17,884 29,053
17,884 29,053
618,493 577,658
91,303 91,147
935 1,021
92,238 92,168
17,884
508,371 29,053
456,437
$526,255 $485,490
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 46
2007 2006
Operating revenues:
Refuse service charges $1,303,472 $1,263,267
Operating expenses:
Cost of sales and services 1,068,972 1,060,554
Administration 22,224 15,933
Recycling 27,990 17,731
Hazardous waste 1,800 1,085
Depreciation 11,169 11,169
Total operating expenses 1,132,155 1,106,472
Net income (loss) from operations 171,317 156,795
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 11,320 9,450
Change in fair value 5,280 (170)
Intergovernmental 36,060 47,755
Total nonoperating revenues (expenses) 52,660 57,035
Net income before transfers 223,977 213,830
Transfers out (183,212) (184,858)
Change in net assets 40,765 28,972
Total net assets -beginning 485,490 456,518
Total net assets -ending $526,255 $485,490
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 47
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers out
Interfund receivable repaid by (advanced to) other funds
Intergovernmental
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
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:
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in accrued salaries and withholdings payable
Total adjustments
Net cash flows from operating activities
2007 2006
$1,290,707 $1,250,090
(1,098,742) (1,261,712)
(22,174) (9, 890)
169,791 (21,512)
(183,212) (184,858)
(162) (1,265)
- 47,755
(183,374) (138,368)
11,380 9,296
5,280 (170)
16,660 9,126
3,077 (150,754)
244,795 395,549
$247,872 $244,795
$171,317 $156,795
11,169 11,169
(12,765) (13,177)
156 (177,320)
(86) 1,021
(1,526) (178,307)
$169,791 ($21,512)
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 31, 2006 Statement 48
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2007 2006
Assets
Current assets:
Cash and cash equivalents $ - $ - $ - $165,885 $165,885 $343,987
Receivables:
Accounts (net of allowance for
uncollectibles) 68,149 - - - 68,149 63,084
Interest - 350 1,480 741 2,571 470
Interfund receivable - 45,765 139,512 - 185,277 -
Total current assets 68,149 46,115 140,992 166,626 421,882 407,541
Noncurrent assets:
Capital assets:
Land 254,724 - - - 254,724 254,724
Infrastructure 1,321,385 - - - 1,321,385 1,262,115
Construction inprocess - - 156,151 - 156,151 164,691
Total capital assets 1,576,109 0 156,151 0 1,732,260 1,681,530
Less: Accumulated depreciation (333,312) - - - (333,312) (272,834)
Total capital assets (net of
accumulated depreciation) 1,242,797 0 156,151 0 1,398,948 1,408,696
Total noncurrent assets 1,242,797 0 156,151 0 1,398,948 1,408,696
Total assets 1,310,946 46,115 297,143 166,626 1,820,830 1,816,237
Liabilities
Current liabilities:
Accounts payable 8,712 - - - 8,712 1,622
Accrued salaries and withholdings payable 854 - - - 854 1,083
Due to other governmental units 1,860 - - - 1,860 1,075
Interfund payable 186,698 - - - 186,698 179,347
Accrued interest payable - - - 12,247 12,247 10,500
Compensated absences payable -current 69 - - - 69 99
Bonds payable -current - - - 125,771 125,771 113,872
Total current liabilities 198,193 0 0 138,018 336,211 307,598
Noncurrent liabilities:
Compensated absences payable -noncurrent 1,230 - - - 1,230 1,360
Bonds payable -noncurrent - - - 626,688 626,688 752,447
Total liabilities 199,423 0 0 764,706 964,129 1,061,405
Net Assets
Invested in capital assets, net of related debt 1,242,797 - 156,151 (752,459) 646,489 542,377
Restricted for debt service - - - 148,272 148,272 138,682
Unrestricted (131,274) 46,115 140,992 6,107 61,940 73,773
Total net assets $1,111,523 $46,115 $297,143 ($598,080) $856,701 $754,832
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 49
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2007 2006
Operating revenues:
Charges for sales and services:
Storm sewer service charges $290,419 $ - $ - $ - 5290,419 5270,467
Operating expenses:
Collection 115,180 - 750 - 115,930 105,756
Administration 1,240 - - - 1,240 1,230
Depreciation 60,478 - - - 60,478 58,538
Total operating expenses 176,898 0 750 0 177,648 165,524
Net income (loss) from operations 113,521 0 (750) 0 112,771 104,943
Nonoperating revenues (expenses)
Investment income:
Interest and dividends - 1,780 7,590 3,770 13,140 4,250
Change in fair value - 830 3,540 1,760 6,130 (70)
Interest and fiscal charges - - - (30,172) (30,172) (24,908)
Total nonoperating
revenues (expenses) 0 2,610 11,130 (24,642) (10,902) (20,728)
Net income (loss) before transfers 113,521 2,610 10,380 (24,642) 101,869 84,215
Transfers in 59,270 5,000 - 178,616 242,886 508,076
Transfers out (183,616) - (59,270) - (242,886) (508,076)
Total transfers (124,346) 5,000 (59,270) 178,616 0 0
Change in net assets (10,825) 7,610 (48,890) 153,974 101,869 84,215
Net assets -beginning 1,122,348 38,505 346,033 (752,054) 754,832 670,617
Net assets -ending $1,111,523 546,115 5297,143 (5598,080) 5856,701 $754,832
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 50
2007 2006
Cash flows from operating activities:
Cash received from customers $285,354 $266,380
Cash paid to suppliers for goods and services (54,690) (52,673)
Cash payments to employees for services (54,994) (51,740)
Net cash flows from operating activities 175,670 161,967
Cash flows from noncapital financing activities:
Interfund receivable repaid by (advanced to) other funds (185,277) -
Interfundpayable (repaid to) advanced by other funds 7,351 (17,249)
Net cash flows from noncapital financing activities (177,926) (17,249)
Cash flows from capital and related financing activities:
Acquisition of capital assets (50,730) (72,534)
Transfers in 242,886 508,076
Transfers out (242,886) (508,076)
Principal payments -bonds (113,860) (109,283)
Issuance of bonds - 250,451
Interest and fiscal charges (28,425) (28,380)
Net cash flows from capital and related financing activities (193,015) 40,254
Cash flows from investing activities:
Investment income:
Interest and dividends 11,039 4,997
Change in fair value 6,130 (70)
Net cash flows from investing activities 17,169 4,927
Net increase in cash and cash equivalents (178,102) 189,899
Cash and cash equivalents- January 1 343,987 154,088
Cash and cash equivalents -December 31 $165,885 $343,987
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $112,771 $104,943
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 60,478 58,538
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (5,065) (4,087)
Increase (decrease) in accounts payable 7,090 1,539
Increase (decrease) in accrued salaries and withholdings payable (229) (267)
Increase (decrease) in due to other governmental units 785 1,075
Increase (decrease) compensated absences payable (160) 226
Total adjustments 62,899 57,024
Net cash flows from operating activities $175,670 $161,967
155
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156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 51
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 31, 2006
Capital Debt
Operating Construction Service Totals
Account Account Account 2007 2006
Assets
Current assets:
Cash and cash equivalents $61,026 $ - $4,420 $65,446 $1,459,078
Cash and cash equivalents with fiscal agent - 2,839,142 402,350 3,241,492 -
Receivables:
Accounts (net of allowance for uncollectables) 1,177 - - 1,177 93 5
Interest - 8,776 1,132 9,908 8,390
Due from other governmental units 1,182 - - 1,182 944
Prepayments - - 111,480 111,480 17,522
Inventory - at cost 1,467,387 - - 1,467,387 1,726,078
Total current assets 1,530,772 2,847,918 519,382 4,898,072 3,212,947
Noncurrent assets:
Capital assets:
Land 4,360 - - 4,360 4,360
Buildings 243,437 - - 243,437 243,437
Equipment 343,948 - - 343,948 364,423
Construction inprogress - 5,000,267 - 5,000,267 17,510
Total capital assets 591,745 5,000,267 0 5,592,012 629,730
Less: Accumulated depreciation (564,709) - - (564,709) (554,931)
Net capital assets (net of accumulated depreciation) 27,036 5,000,267 0 5,027,303 74,799
Total noncurrent assets 27,036 5,000,267 0 5,027,303 74,799
Total assets 1,557,808 7,848,185 519,382 9,925,375 3,287,746
Liabilities
Current liabilities:
Accounts payable 346,637 441,625 - 788,262 271,291
Accrued salaries and withholdings payable 35,821 2,096 - 37,917 33,833
Contract payable -retained percentage - 134,864 - 134,864 -
Due to other governmental units 66,932 - - 66,932 62,114
Interfund payable - 806,486 - 806,486 -
Accruedinterest payable - - 71,743 71,743 -
Compensated absences payable -current 3,236 - - 3,236 3,843
Total current liabilities 452,626 1,385,071 71,743 1,909,440 371,081
Noncurrent liabilities:
Compensated absences payable -noncurrent 58,047 - - 58,047 52,669
Interfund capital construction lease payable -noncurrent - - 5,040,000 5,040,000 -
Totalliabilities 510,673 1,385,071 5,111,743 7,007,487 423,750
Net Assets
Invested in capital assets, net of related debt 27,036 5,000,267 (4,928,520) 98,783 74,799
Restricted for debt service - - 331,739 331,739 -
Restrictedfor capital asset additions - 1,462,847 4,400 1,467,247 -
Unrestricted 1,020,099 - 20 1,020,119 2,789,197
Total net assets $1,047,135 $6,463,114 ($4,592,361) $2,917,888 $2,863,996
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Operating Accounts
Top
Top Valu Valu II
Operating revenues:
Charges for sales:
Liquor $1,157,914 $882,528
Beer 1,408,038 1,090,042
Wine 378,030 402,595
Other 212,069 135,698
Total operating revenues 3,156,051 2,510,863
Operating expenses:
Cost of goods sold 2,422,744 1,921,146
Operating expense 612,818 471,671
Depreciation 5,270 13,597
Total operating expenses 3,040,832 2,406,414
Net income from operations
$115,219 $104,449
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Miscellaneous revenues
Miscellaneous expenses
Interest and fiscal charges
Total nonoperating revenues (expenses)
Net income before transfers
Transfers in
Transfers out
Change in net assets
Net assets -beginning
Net assets -ending
158
Statement 52
Total Capital Debt
Heights Operating Construction Service Totals
Liquor Accounts Account Account 2007 2006
$355,382 $2,395,824 $ - $ - $2,395,824 $2,313,343
544,952 3,043,032 - - 3,043,032 2,994,162
54,251 834,876 - - 834,876 773,326
100,891 448,658 - - 448,658 465,660
1,055,476 6,722,390 0 0 6,722,390 6,546,491
800,992 5,144,882 - - 5,144,882 5,039,318
202,051 1,286,540 - - 1,286,540 1,282,616
3,537 22,404 - - 22,404 22,405
1,006,580 6,453,826 0 0 6,453,826 6,344,339
$48,896 268,564 0 0 268,564 202,152
- 43,924 4,243 48,167 34,930
- - 10 10 (620)
232 - - 232 488
(7,849) - - (7,849) -
- - (40,532) (40,532) -
(7,617) 43,924 (36,279) 28 34,798
260,947 43,924 (36,279) 268,592 236,950
- 6,388,875 - 6,388,875 -
(2,047,493) - (4,556,082) (6,603,575) (712,361)
(1,786,546) 6,432,799 (4,592,361) 53,892 (475,411)
2,833,681 30,315 - 2,863,996 3,339,407
$1,047,135 $6,463,114 ($4,592,361) $2,917,888 $2,863,996
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 53
Page 1 of 2
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Net cash flows from operating activities
Cash flows from noncapital financing activities
Transfers out
Miscellaneous revenues
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Transfers in
Transfers out
Interfund payable (repaid to) advanced by other funds
Advances under interfund capital construction lease
Interest and fiscal charges -including capitalized interest
Net cash flows from operating 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
Total cash and cash equivalents -January 1
Total cash and cash equivalents -December 31
(Less) cash and cash equivalents with fiscal agent -December 31
Cash and cash equivalents -December 31
2007 2006
$6,721,910 $6,546,371
(5,244,956) (5,495,365)
(823,330) (832,954)
653,624 218,052
(214,700) (712,361)
232 488
(214,468) (711,873)
(4,370,677) (17,510)
6,388,875 -
(6,388,875) -
806,486
5,040,000 -
(ll3,764) -
1,362,045 (17,510)
46,649 36,426
10 (620)
46,659 35,806
1,847,860 (475,525)
1,459,078 1,934,603
3,306,938 1,459,078
(3,241,492) -
565,446 $1,459,078
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 53
Page 1 of 2
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 receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
.Adjustment for nonoperating portion
(Increase) decrease in inventory, at cost
Increase (decrease) in accounts payable
.Adjustment for nonoperating portion
Increase (decrease) in accrued salaries and withholdings payable
Adjustment for nonoperating portion
Increase (decrease) in contracts payable -retained percentage
Adjustment for nonoperating portion
Increase (decrease) in due to other governmental units
Increase (decrease) in compensated absences payable
Total adjustments
2007
$268,564
2006
Net cash flows from operating activities
Noncash capital and related financing activities:
Capital assets purchased/constructed on account
$202,152
22,404 22,405
(242) (50)
(238) (70)
(93,958) (96)
111,480 -
258,691 (44,338)
516,971 34,744
(441,625) -
4,084 (6,356)
(2,096) -
134,864 -
(134,864) -
4,818 (733)
4,771 10,394
385,060
$653,624
$578,585
15,900
$218,052
$ -
161
-This page intentionally left blank -
162
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 Gara e.~ 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
ve is es as necessary.
Information Systems Fund -used to account for the costs associated with information systems
within the City. All costs are recorded in the fund and are financed by transfers from 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 premiums, claims and claims administration
are recorded in the fund and allocated to user funds based on a percentage risk factor.
Compensated Absences Fund -used to account for funds that have been set aside by the City
Council for compensated absences earned by employees' services to the City's governmental
funds. Funds set aside for the compensated absences earned by employees' services to the City's
proprietary funds are recorded directly in each particular proprietary fund.
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31, 2007
Statement 54
Central Information Compensated Total Internal
Garage Systems Insurance Absences Service Funds
Assets
Current assets:
Cash and cash equivalents
Interest receivable
Prepayments
Inventory - at cost
Total current assets
Noncurrent assets:
Capital assets:
Buildings
Equipment
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of
accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Compensated absences payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences payable -noncurrent
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
$437,703 $700,390 $621,253 $772,092 $2,531,438
3,300 5,610 5,050 6,120 20,080
- - 58.746 - 58.746
483,403 706,000 685,049 778,212 2,652,664
1,510,174 - - - 1,510,174
1,690,143 95,353 0 0 1,785,496
(538,532) (59,466) - - (597,998)
1,151,611 35,887 - - 1,187,498
1,151,611 35,887 0 0 1,187,498
1,635,014 741,887 685,049 778,212 3,840,162
39,217 2,032 - - 41,249
7,769 6,668 - - 14,437
1,017 477 - 35,817 37,311
48,003 9,177 0 35,817 92,997
18,241 8,548 - 642,543 669,332
18,241 8,548 0 642,543 669,332
66,244 17,725 0 678,360 762,329
1,151,611 35,887 - - 1,187,498
417,159 688,275 685,049 99,852 1,890,335
$1,568,770 $724,162 $685,049 $99,852 $3,077,833
164
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
Central Information Compensated Total Internal
Garage Systems Insurance Absences Service Funds
$168,880 $ - $428,924 $ - $597,804
254,232 - - - 254,232
- - 1,023 - 1,023
131,716 - - - 131,716
554,828 0 429,947 0 984,775
444.775 219.739 408.479 - 1.072.993
Operating revenues:
Charges for services:
Services to departments
Use of space
Recovery of damages
Charges for sales:
Sales of motor fuel
Total operating revenues
Operating expenses:
Cost of services and space
Depreciation
Total operating expenses
Net income (loss) from operations
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Total nonoperating revenues (expenses)
Net income (loss) before capital contributions
and transfers
Capital contribution -capital asset
Transfers in
Transfers out
Total transfers
Change in net assets
Net assets -beginning
Net assets -ending
476,545 234,185 408,479
78,283 (234,185) 21,468
Statement 55
0 1,119,209
U (134,434)
16,870 28,690 25,850 31,300 102,710
7,860 13,370 12,040 14,590 47,860
24,730 42,060 37,890 45,890 150,570
103,013 (192,125) 59,358 45,890 16,136
1,115,870 - - - 1,115,870
4,000 235,000 - - 239,000
(117,837) - - - (117,837)
1,002,033 235,000 0 0 1,237,033
1,105,046 42,875 59,358 45,890 1,253,169
463,724 681,287 625,691 53,962 1,824,664
$1,568,770 $724,162 $685,049 $99,852 $3,077,833
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2007
Statement 56
Central Information Compensated Total Internal
Cash flows from operating activities:
Cash received from interfund goods and services provided $554,828 $ - $428,924 $363,323 $1,347,075
Cash received for damages - - 1,023 - 1,023
Cash paid to suppliers for goods and services (256,060) (79,604) (428,384) - (764,048)
Cash payments to employees for services (160,959) (161,967) - (374,358) (697,284)
Net cash flows from operating activities 137,809 (241,571) 1,563 (11,035) (113,234)
Cash flows from noncapital financing activities:
Transfers in - 235,000 - - 235,000
Transfers out (25,000) - - - (25,000)
Net cash flows from
noncapital financing activities (25,000) 235,000 0 0 210,000
Cash flows from capital and related financing activities:
Acquisition of capital assets - (4,738) - - (4,738)
Transfers in 4,000 - - - 4,000
Transfers out (92,837) - - - (92,837)
Net cash flows from
capital and related financing activities (88,837) (4,738) 0 0 (93,575)
Cash flows from investing activities:
Investment income:
Interest and dividends 17,000 28,860 25,500 31,109 102,469
Change in fair value 7,860 13,370 12,040 14,590 47,860
Net cash flows from investing activities 24,860 42,230 37,540 45,699 150,329
Net increase in cash and cash equivalents 48,832 30,921 39,103 34,664 153,520
Cash and cash equivalents -January 1 388,871 669,469 582,150 737,428 2,377,918
Cash and cash equivalents -December 31 $437,703 $700,390 $621,253 $772,092 $2,531,438
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $78,283 ($234,185) $21,468 $ - ($134,434)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 31,770 14,446 - - 46,216
Changes in assets and liabilities:
(Increase) decrease inprepayments - - (19,905) - (19,905)
(Increase) decrease in inventory, at cost 7,979 - - - 7,979
Increase (decrease) in accounts payable 16,454 (18,783) - - (2,329)
Increase (decrease) in accrued
salaries and withholdings payable 1,993 1,044 - - 3,037
Increase (decrease) in compensated absences payable 1,330 (4,093) - (11,035) (13,798)
Total adjustments 59,526 (7,386) (19,905) (11,035) 21,200
Net cash flows from operating activities $137,809 ($241,571) $1,563 ($11,035) ($113,234)
Noncash capital and related financing activities:
Contribution of capital assets from government $1,115,870 $0 $0 $0 $1,115,870
166
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 57
Assets
Current assets:
Cash and cash equivalents
Interest Receivables
Inventory - at cost
Total current assets
Noncurrent assets:
Capital assets:
Buildings
Equipment
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of
accumulated depreciation
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Compensated absences payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences payable -noncurrent
Total noncurrent liabilities
Total liabilities
Net Assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Capital
Equipment
Operating Replacement Totals
Account Account 2007 2006
$386,366 $51,337 $437,703 $388,871
2,900 400 3,300 3,430
42,400 - 42,400 50,379
431,666 51,737 483,403 442,680
1,510,174 - 1,510,174 394,304
179,969 - 179,969 179,969
1,690,143 0 1,690,143 574,273
(538,532) - (538,532) (506,762)
1,151,611 0 1,151,611 67,511
1,151,611 0 1,151,611 67,511
1,583,277 51,737 1,635,014 510,191
39,217 - 39,217 22,763
7,769 - 7,769 5,776
1,017 - 1,017 1,219
48,003 0 48,003 29,758
18,241 - 18,241 16,709
18,241 0 18,241 16,709
66,244 0 66,244 46,467
1,151,611 - 1,151,611 67,511
365,422 51,737 417,159 396,213
$1,517,033 $51,737 $1,568,770 $463,724
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 58
Capital
Equipment
Operating Replacement Totals
Account Account 2007 2006
Operating revenues:
Charges for services:
Services to departments $168,880 $ - $168,880 $157,211
Use of space 254,232 - 254,232 260,219
Charges for sales:
Sales of motor fuel 131,716 - 131,716 99,341
Total operating revenues 554,828 0 554,828 516,771
Operating expenses:
Cost of services and space 444,775 - 444,775 404,872
Depreciation 31,770 - 31,770 14,189
Total operating expenses 476,545 0 476,545 419,061
Net income (loss) from operations 78,283 0 78,283 97,710
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 14,840 2,030 16,870 14,289
Change in fair value 6,920 940 7,860 (260)
Total nonoperating revenues (expenses) 21,760 2,970 24,730 14,029
Net income before capital contributions and transfers 100,043 2,970 103,013 111,739
Capital contribution -capital asset 1,115,870 - 1,115,870 -
Transfers in - 4,000 4,000 4,000
Transfers out (117,837) - (117,837) (118,998)
Total transfers 998,033 4,000 1,002,033 (114,998)
Change in net assets 1,098,076 6,970 1,105,046 (3,259)
Total net assets -beginning 418,957 44,767 463,724 466,983
Total net assets -ending $1,517,033 $51,737 $1,568,770 $463,724
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 59
2007 2006
Cash flows from operating activities:
Cash received from interfund goods & services provided 5554,828 5519,772
Cash paid to suppliers for goods and services (256,060) (272,396)
Cash payments to employees for services (160,959) (152,026)
Miscellaneous revenues - -
Netcash flows from operating activities 137,809 95,350
Cash flows from noncapital financing activities:
Transfers out (25,000) (25,000)
Cash flows from capital and related financing activities:
Transfers in 4,000 4,000
Transfers out (92,837) (93,998)
Net cash flows from capital and related financing activities (88,837) (89,998)
Cash flows from investing activities:
Investment income:
Interest and dividends 17,000 11,139
Change in fair value 7,860 (260)
Net cash flows from investing activities 24,860 10,879
Net increase in cash and cash equivalents 48,832 (8,769)
Cash and cash equivalents -January 1 388,871 397,640
Cash and cash equivalents -December 31 $437,703 5388,871
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) 578,283 $97,710
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 31,770 14,189
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - 3,001
(Increase) decrease in inventory, at cost 7,979 (6,984)
Increase (decrease) in accounts payable 16,454 (13,208)
Increase (decrease) in accrued salaries and withholdings payable 1,993 452
Increase (decrease) in compensated absences payable 1,330 190
Total adjustments 59,526 (2,360)
Net cash flows from operating activities 5137,809 $95,350
Noncash capital and related financing activities:
Contribution of capital assets from government $1,115,870 SO
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 60
Capital
Equipment
Operating Replacement Totals
Account Account 2007 2006
Assets
Current assets:
Cash and cash equivalents $667,673 $32,717 $700,390 $669,469
Interest receivable 5,350 260 5,610 5,780
Total current assets 673,023 32,977 706,000 675,249
Noncurrent assets:
Capital assets:
Equipment 95,353 - 95,353 86,494
Construction in progress - - - 4,121
Total capital assets 95,353 0 95,353 90,615
Less: Accumulated depreciation (59,466) - (59,466) (45,020)
Capital assets (net of
accumulated depreciation) 35,887 - 35,887 45,595
Total noncurrent assets 35,887 0 35,887 45,595
Total assets 708,910 32,977 741,887 720,844
Liabilities
Current liabilities:
Accounts payable 2,032 - 2,032 20,815
Accrued salaries and withholdings payable 6,668 - 6,668 5,624
Compensated absences payable -current 477 - 477 892
Total current liabilities 9,177 0 9,177 27,331
Noncurrent liabilities:
Compensated absences payable -noncurrent 8,548 - 8,548 12,226
Total noncurrent liabilities 8,548 0 8,548 12,226
Total liabilities 17,725 0 17,725 39,557
Net Assets
Invested in capital assets, net of related debt 35,887 - 35,887 45,595
Unrestricted 655,298 32,977 688,275 635,692
Total net assets $691,185 $32,977 $724,162 $681,287
170
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 61
Capital
Equipment
Operating Replacement Totals
Account Account 2007 2006
Operating revenues $ - $ - $ - $ -
Operating expenses:
Cost of services 219,739 - 219,739 241,871
Depreciation 14,446 - 14,446 12,462
Total operating expenses 234,185 0 234,185 254,333
Net income (loss) from operations (234,185) 0 (234,185) (254,333)
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 27,350 1,340 28,690 24,080
Change in fair value 12,750 620 13,370 (430)
Total nonoperating revenues (expenses) 40,100 1,960 42,060 23,650
Net income (loss) before transfers (194,085) 1,960 (192,125) (230,683)
Transfers in 235,000 - 235,000 235,000
Change in net assets 40,915 1,960 42,875 4,317
Net assets -beginning 650,270 31,017 681,287 676,970
Net assets -ending $691,185 $32,977 $724,162 $681,287
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 62
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
Cash flows from noncapital financing activities:
Transfers in
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
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:
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
Net cash flows from operating activities
2007
(579,604)
(161,967)
(241,571)
235,000
(4,738)
28,860
13,370
42,230
30,921
669,469
5700,390
($234,185) (5254,333)
14,446 12,462
(18,783) 9,237
1,044 (29)
(4,093) 3,833
(7,3 86)
($241,571)
25,503
($228,830)
2006
($67,790)
(161,040)
(228,830)
235,000
(20,906)
18,525
(430)
18,095
3,359
666,110
5669,469
172
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 63
2007
Assets
Current assets:
Cash and cash equivalents 5621,253
Interest receivable 5,050
Prepayments 58,746
Total assets 685,049
Liabilities -
Net Assets
Unrestricted 685,049
Total net assets $685,049
2006
$582,150
4,700
38,841
625,691
625,691
5625,691
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 64
Operating revenues:
Insurance allocation
Recovery of damages
Total operating revenues
Operating expenses:
Cost of services:
Premiums
Claims
Total operating expenses
Net income from operations
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Total nonoperating revenues (expenses)
Net income (loss) before transfers
Transfers out
Change in net assets
Net assets -beginning
Net assets -ending
2007 2006
$428,924 $429,656
1,023 51,328
429,947 480,984
394,284 341,618
14,195 25,931
408,479 367,549
21,468 113,435
25,850
12,040
37,890
59,358
59,358
625,691
5685,049
19,560
(350)
19,210
132,645
(735,000)
(602,355)
1,228,046
$625,691
174
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 65
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
Cash flows from noncapital financing activities:
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
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:
Changes in assets and liabilities:
(Increase) decrease in prepayments
Increase (decrease) in accounts payable
Total adjustments
Net cash flows from operating activities
2007
$428,924
1,023
(428,384)
1,563
0
25,500
12,040
37,540
39,103
582,150
$621,253
$21,468
(19,905)
(19,905)
$1,563
2006
$429,656
51,328
(372,034)
108,950
(735,000)
(735,000)
23,503
(350)
23,153
(602,897)
1,185,047
$582,150
$113,435
(4,485)
(4,485)
$108,950
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2007
With Comparative Totals For December 3 1, 2006
Statement 66
2007 2006
Assets
Current assets:
Cash and cash equivalents $772,092 $737,428
Interest receivable 6,120 5,929
Total assets 778,212 743,357
Liabilities
Current liabilities:
Compensated absences payable -current 35,817 46,879
Noncurrent liabilities:
Compensated absences payable -noncurrent 642,543 642,516
Total liabilities 678,360 689,395
Net Assets
Unrestricted 99,852 53,962
Total net assets $99,852 $53,962
176
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006 Statement 67
2007 2006
Operating revenues:
Charges for services $ - $ -
Operating expenses:
Cost ofservices - -
Net income from operations 0 0
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 31,300 24,689
Change in fair value 14,590 (440)
Total nonoperating revenues (expenses) 45,890 24,249
Change in net assets 45,890 24,249
Net assets -beginning 53,962 29,713
Net assets -ending $99,852 $53,962
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2007
With Comparative Totals For The Year Ended December 3 1, 2006
Statement 68
2007 2006
Cash flows from operating activities:
Cash received from interfund services provided $363,323 $394,205
Cash payments to employees for services (374,358) (348,398)
Net cash flows from operating activities (11,035) 45,807
Cash flows from investing activities:
Investment income:
Interest and dividends 31,109 23,396
Change in fair value 14,590 (440)
Net cash flows from investing activities 45,699 22,956
Net increase in cash and cash equivalents 34,664 68,763
Cash and cash equivalents -January 1 737,428 668,665
Cash and cash equivalents -December 31 $772,092 $737,428
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:
Changes in assets and liabilities:
Increase (decrease) in compensated absences payable (11,035) 45,807
Total adjustments (11,035) 45,807
Net cash flows from operating activities ($11,035) $45,807
178
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 Surchar e.~ Fund -used to account for SAC charges and surcharges collected for and
remitted to the State of Minnesota.
Tri-City GIS Fund -used to account for joint purchases of geographic information services by
the Cities of Columbia Heights, Fridley and Andover.
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the Year Ended December 3 1, 2007
Statement 69
Balance Balance
Tanuarv 1 _ December 31.
Permit Surchar e.
Assets
Cash and investments
Total assets
Liabilities
Due to other governmental units
Total liabilities
Tri-Ci GIS Fund
Assets
Cash and investments
Due from other governmental units
Total assets
Liabilities
Accounts payable
Due to other governmental units
Total liabilities
Total
Assets
Cash and investments
Due from other governmental units
Total assets
Liabilities
Accounts payable
Due to other governmental units
Total liabilities
$14,142 $32,086 $41,493 $4,735
$14,142 $32,086 $41,493 $4,735
$14,142 $32,086 $41,493 $4,735
$14,142 $32,086 $41,493 $4,735
$7,823 $56,995 $64,818 $ -
- 28,055 15,537 12,518
$7,823 $56,995 $64,818 $0
$4,277 $70,13 8 $74,415 $ -
3,546 51,306 42,334 12,518
$7, 823 $121,444 $116,749 $12,518
$21,965 $89,081 $106,311 $4,735
- 28,055 15,537 12,518
$21,965 $117,136 $121,848 $17,253
X4.277 ~7(l_ 13 R X74.415 ~ -
$21,965 $153,530 $158,242 $17,253
180
III. STATISTICAL SECTION (UNAUDITED
181
STATISTICAL SECTION
The following detailed statistical tables are presented to provide a context for understanding and
evaluating the information presented in the other parts of this report. Unless otherwise noted, the
information in these statistical tables is derived from the city of Columbia Heights'
Comprehensive Annual Reports for the relevant years. These tables address the five categories
of information listed below.
Financial Trends -Tables 1 through 4
These tables contain trend information to help the reader understand how the City's financial
performance has changed over time.
Revenue Capacity -Tables 5 through 8
These tables contain information to help the reader assess the factors affecting the City's ability
to generate property taxes.
Debt Capacity -Tables 9 through 13
These tables contain present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demo . raphic and Economic Information -Tables 14 throu .. h~155
These tables offer demographic and economic indicators to help the reader understand the
environment within which the city's financial activities take place and to help make
comparisons over time and with other governments.
Operating Information -Tables 16 through 18
These tables contain information about the City's operations and resources to help the reader
understand the relationship between the City's financial activities and the services the City
prove es.
182
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT
Last Six Fiscal Years (A)
(Accrual Basis of Accounting)
Table 1
Fiscal Year
Governmental activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business-type activities:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business-type activities net assets
Primary government:
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
2002 2003 2004 2005 2006 2007
~1b,yJ~,JyJ ~14,J~J,J~y ~14,~L~,ylb alb,/L/,/L4 ~1~,U4S,Lll ~l~,~Jy,U~U
1 ~nz S~Z 1 11 d R7n ~ SRS Zn5 ~ ~m n5h ~ ~Ad 2Rd ~ nnn RRR
$34,966,842 $33,719,592 $36,981,059 $37,610,761 $43,296,635 $43,573,864
$5,473,625 $5,432,788 $6,175,547 $6,732,499 $5,759,805 $6,039,739
X75 7QZ ion ~7s z~7 zQa ~7s hs~ ~QS ~~7 ~ ~a~ ~Q~
$13,408,031 $13,148,191 $13,520,824 $13,684,352 $13,514,606 $13,792,301
$22,432,220 $19,968,377 $20,504,463 $23,460,223 $23,803,082 $24,898,769
1 ~7A ~nh 1 dn5 nd5 ~ h77 hAd ~ h77 7nR 7 h7A hl l 5 7d~ 171
$48,374,873 $46,867,783 $50,501,883 $51,295,113 $56,811,241 $57,366,165
(A) Net asset information is not available for years prior to 2002; the year the City implemented GASB Statement 34.
183
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
Last Six Fiscal Years (A)
(Accrual Basis of Accounting)
Table 2
Page 1 of 2
Fiscal Year
2002 2003 2004 2005 2006
Expenses
Governmental activities:
General government $1,915,920 $1,756,434 $1,669,721 $1,681,229 $1,689,675
Public safety 3,920,746 3,630,535 3,640,970 4,052,905 3,992,930
Public works 1,659,152 2,646,859 2,109,060 2,391,726 2,353,032
Culture and recreation 2,018,571 1,909,831 1,904,848 2,017,816 2,135,633
Community development 1,679,107 1,239,030 2,171,407 5,360,442 2,579,084
Interest on long-term debt 575,712 414,297 387,544 288,532 118,760
Total governmental activities expenses 11,769,208 11,596,986 11,883,550 15,792,650 12,869,114
Business-type activities:
Water 1,561,071 1,903,331 1,637,316 1,717,445 2,026,603
Sewer 1,058,721 1,231,594 1,219,200 1,333,420 1,393,679
Refuse 1,271,961 1,330,272 1,321,730 1,147,313 1,147,879
Storm Sewer 162,499 204,895 158,374 162,915 184,764
Liquor 6,343,775 6,619,942 6,593,578 6,544,175 6,377,805
Total business-type activities expenses 10,398,027 11,290,034 10,930,198 10,905,268 11,130,730
2007
$1,732,111
4,380,363
2,506,913
2,313,750
5,918,257
17,348,082
2,113,121
1,675,738
1,170,707
204,221
11,703,144
Total primary government expenses $22,167,235 $22,887,020 $22,813,748 $26,697,918 $23,999,844 $29,051,226
Program revenues
Governmental activities:
Charges for services:
General government $594,983 $724,331 $203,344 $228,740 $171,146
Public safety 290,465 330,768 488,216 423,450 528,752
Public works 168,608 306,193 48,253 81,607 267,960
Culture and recreation 233,498 107,318 239,352 250,380 263,565
Community development 501,288 510,620 1,313,912 2,748,542 1,461,497
Operating grants and contributions:
General government 2,688 - - 79 2,769
Public safety 387,828 405,098 436,460 557,983 355,356
Public works 161,384 194,987 213,801 178,311 161,176
Culture and recreation 140,938 41,492 72,269 76,405 79,371
Community development 525,821 304,669 955,213 144,121 160,017
Capital grants and contributions:
Public safety - 225,000 225,000 599,917 52,463
Public works 613,304 1,315,007 46,052 3,896,862
Culture and recreation 4,043,856 - 50,250 1,702,543 141,738
Community development - 56,805 177,737 - 682,872
Total governmental activities program revenues 7,051,357 3,820,585 5,738,814 7,038,130 8,225,544
Business-type activities:
Charges for services:
Water - 1,548,505 1,771,153 1,887,990 2,141,648
Sewer 1,391,669 1,240,882 1,019,532 1,145,810 1,374,217
Refuse 1,220,936 1,248,346 1,255,011 1,256,180 1,263,267
Storm sewer 1,248,982 184,712 284,223 274,907 270,467
Liquor 172,975 6,960,916 6,975,756 6,714,575 6,546,979
Operating grants and contributions: 6,883,344 - - - -
Sewer - 1,865 - - -
Refuse - 53,411 46,635 46,170 47,755
Storm sewer 198 52,499 - - -
Capital grants and contributions:
Water - - - - 22,822
Storm sewer (4,251,478) - 113,407 - -
Total business-type activities program revenues 6,666,626 11,291,136 11,465,717 11,325,632 11,667,155
2,273,980
1,419,252
1,303,472
290,419
6,722,622
36,060
12,045,805
Total primary government program revenues $13,717,983 $15,111,721 $17,204,531 $18,363,762 $19,892,699 $18,511,808
$177,378
670,017
130,351
297,341
1,504,679
389,325
154,309
47,784
159,624
103,974
1,448,180
71,516
1,311,525
6,466,003
184
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
Last Six Fiscal Years (A)
(Accrual Basis of Accounting)
Table 2
Page 2 of 2
Fiscal Year
2002 2003 2004 2005 2006 2007
Net (expense) revenue:
Governmental activities ($4,717 851)
> ($7 776 401)
> > ($6144 736)
> > ($8 754 520)
> > ($4 643 570)
> > ($10 882 079)
> >
Business-type activities (3,731,401) 1,102 535,519 420,364 536,425 342,661
Total primary government net (expense) revenue (8,449,252) (7,775,299) (5,609,217) (8,334,156) (4,107,145) (10,539,418)
General revenues and other changes in net assets
Governmental activities:
Taxes:
Property taxes 2,002 4,306,036 4,989,205 5,662,368 5,953,722 6,321,467
Tax increment collections - 781,439 972,208 1,088,267 1,086,298 1,183,062
Unrestricted grants and contributions - 2,712,408 2,337,386 1,768,216 1,679,384 1,844,516
Investment earnings - 408,208 729,456 471,142 706,231 1,379,726
Miscellaneous 4,341,972 103,524 - 18,980 15,930 44,000
Transfers 798,446 387,613 377,948 375,249 887,879 386,537
Total governmental activities 5,142,420 8,699,228 9,406,203 9,384,222 10,329,444 11,159,308
Business-type activities: 1,201,447
Investment earnings 6,454 126,671 215,062 118,413 181,708 321,571
Transfers 634,236 (387,613) (377,948) (375,249) (887,879) (386,537)
Total business-type activities 1,842,137 (260,942) (162,886) (256,836) (706,171) (64,966)
Total primary government $6,984,557 $8,438,286 $9,243,317 $9,127,386 $9,623,273 $11,094,342
Change in net assets:
Governmental activities ($258,612) $922,827 $3,261,467 $629,702 $5,685,874 $277,229
Business-type activities (259,840) 372,633 163,528 (169,746) 277,695
Total primary government ($258,612) $662,987 $3,634,100 $793,230 $5,516,128 $554,924
(A) Changes in net assets are not available for years prior to 2002; the year the City implemented GASB Statement 34
Certain information from prior years' presentation has been reclassified in this table to conform to the current year presentation
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
1998 1999 2000 2001
General Fund:
Reserved $11,632 $6,654 $6,858 $7,003
Unreserved 4,732,599 5,009,311 4,794,560 3,890,373
Total general fund $4,744,231 $5,015,965 $4,801,418 $3,897,376
All other governmental funds:
Reserved $675,622 $805,801 $986,662 $951,121
Unreserved, reported in:
Special revenue funds 3,026,391 3,308,874 3,272,268 3,190,810
Debt service funds 644,112 809,379 1,546,331 1,710,716
Capital projects funds 3,457,655 4,021,482 4,729,255 7,688,865
Total all other governmental funds $7,803,780 $8,945,536 $10,534,516 $13,541,512
186
Table 3
Fiscal Year
2002 2003 2004 2005 2006
$14,657 $14,727 $23,302 $10,484 $35,323
3,500,949 3,408,505 4,116,808 3,339,644 3,560,525
$3,515,606 $3,423,232 $4,140,110 $3,350,128 $3,595,848
$950,813 $976,139 $5,273,705 $2,187,884 $2,668,322
355,626 610,804 (652,449) (612,434) (506,084)
1,187,646 841,666 1,044,647 621,250 809,062
11,938,611 13,633,284 12,367,589 12,784,744 15,034,968
$14,432,696 $16,061,893 $18,033,492 $14,981,444 $18,006,268
2007
$35,710
3,943,436
$3,979,146
$7,422,354
411,090
1,745,447
15,918,048
$25,496,939
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Fiscal Year
Revenues:
Taxes
Licenses, fees and permits
Fines and penalties
Charges for services
Special assessments
Intergovernmental
Investment earnings
Other revenues
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Culture and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Culture and recreation
Community development
Debt service:
Principal retirement
Interest and fiscal charges
Issuance costs
Developer incentives
Total expenditures
Revenues over (under) expenditures
1998 1999 2000 2001
$4,449,833 $4,413,680 $4,809,958 $4,878,197
289,411 401,158 268,014 292,744
121,858 100,161 90,218 87,760
1,167,676 1,029,899 1,102,249 1,191,165
543,108 399,300 448,199 628,222
5,389,060 5,282,867 6,094,806 6,597,650
767,127 204,141 1,191,174 987,643
927,358 1,171,309 1,187,989 1,469,836
13,655,431 13,002,515 15,192,607 16,133,217
Note (A)
13,359,744 12,721,113 14,038,385 14,148,923
295,687
281,402 1,154,222
1,984,294
188
Table 4
Page 1 of 2
Fiscal Year
2002 2003 2004 2005 2006 2007
$5,143,733 $5,076,498 $5,937,431 $6,702,610 $6,977,604 $7,444,199
277,924 281,480 586,957 382,339 597,557 444,833
84,346 140,378 140,282 127,555 129,400 160,383
1,166,876 1,125,431 1,442,438 3,197,360 1,887,314 1,995,859
597,380 564,351 671,357 520,031 1,011,553 1,137,576
7,996,992 3,844,988 4,687,866 4,878,487 4,228,308 4,229,414
1,201,447 392,995 695,275 432,959 648,744 1,271,216
327,771 435,829 176,575 90,956 251,414 170,344
16,796,469 11,861,950 14,338,181 16,332,297 15,731,894 16,853,824
1,876,996 1,663,801 1,576,233 1,575,863 1,577,484 1,616,374
3,829,178 3,590,525 3,615,200 3,954,019 3,887,884 4,122,411
1,162,996 1,208,055 1,311,390 1,558,987 1,523,170 1,640,713
1,897,690 1,862,777 1,872,178 1,977,798 2,074,835 2,238,793
1,545,405 1,622,468 1,576,161 4,511,338 2,256,122 3,077,310
20,778 16,037 - 11,022 4,512 -
124,648 348,221 476,511 95,125 82,986 254,728
5,296,201 1,273,747 1,637,559 1,912,738 4,202,665 1,303,297
26,610 71,700 83,955 62,700 117,909 274,896
257,425 55,824 682,939 1,436,724 266,144 306,332
716,515 477,918 514,789 1,449,035 782,273 792,273
561,222 602,592 652,518 2,478,205 119,544 219,065
- 10,330 29,918 - 25,114 148,972
104,258 85,211 67,866 252,176 142,451 2,584,854
17,419,922 12,889,206 14,097,217 21,275,730 17,063,093 18,580,018
(623,453) (1,027,256) 240,964 (4,943,433) (1,331,199) (1,726,194)
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Fiscal Year
Other financing sources (uses):
Bonds issued
Bond premium (discount)
Transfers in
Transfers out
Sale of capital assets
Total other fmancing sources (uses)
Net change in fund balance
Debt service as a percentage
of noncapital expenditures -Note (B)
Debt service as a
percentage of total expenditures -Note (B)
1998
$ -
2,441,327
(2,044,346)
396,981
$692,668
1999
$853,120
3,430,710
(3,151,742)
1,132,088
$1,413,490
2000
$ -
2,923,188
(2,702,977)
220,211
$1,374,433
2001
$ -
4,940,560
(4,821,900)
118,660
$2,102,954
Note (A)
(A) Information necessary to present expenditures by the classifications used in this table is not available for years prior to 2002;
the year the City implemented GASB Statement 34.
190
Table 4
Page 2 of 2
Fiscal Year
2002 2003 2004 2005 2006 2007
$ - $1,332,828 $1,985,000 $ - $2,759,550 $8,930,000
- (5,998) (5,935) - 26,303 (22,108)
6,857,803 3,849,932 838,937 553,070 1,807,877 570,374
(5,751,430) (2,880,382) (370,489) (80,321) (70,000) (70,000)
- 267,699 - 628,654 78,013 191,897
1,106,373 2,564,079 2,447,513 1,101,403 4,601,743 9,600,163
$482,920 $1,536,823 $2,688,477 ($3,842,030) $3,270,544 $7,873,969
11.0% 9.9% 10.7% 22.4% 7.6% 8.4%
7.3% 8.5% 8.5% 18.5% 5.4% 6.2%
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY
Last Ten Fiscal Years
(Unaudited)
Table 5
Tax Capacity Value
Fiscal Other Captured Tax
Year Residential Property (A) Increment Value
1998
1999
2000 Note (E)
2001
2002
Adjusted
Taxable Net Total
Area Wide Allocation (B) Tax Capacity Direct Tax
Subtotal Contribution Distribution Value (C) Rate (D)
$8,107,755 ($512,532) $2,540,064 $10,135,287 30.991%
7,846,520 (505,598) 2,527,183 9,868,105 3L925%
8,409,338 (503,'719) 2,7T7,~92 10,682,911 30.147%
9,392,543 (573,922) 3,085,984 11,904,605 30.564%
8,116,453 (385,323) 1,976,846 9,707,976 49.114%
2003 7,852,288 1,731,844 (823,154) 8,760,978 (409,330) 2,111,495 10,463,143 45.272%
2004 8,808,143 1,813,247 (1,010,335) 9,611,055 (379,508) 2,267,401 11,498,948 47.888%
2005 10,170,041 1,874,629 (1,152,643) 10,892,027 (417,605) 2,275,591 12,750,013 47.859%
2006 11,487,424 1,861,133 (1,193,227) 12,155,330 (453,305) 2,324,917 14,026,942 44.736%
2007 12,860,373 1,967,884 (1,389,436) 13,438,821 (443,665) 2,473,140 15,468,296 41.511%
Adjusted Tax
Estimated Capacity Value
Market as a Percent
Value of EMV
$591,420,800
613,325,300
662,002,000
749,621,700
843,669,700
982,517,600
1,077,714,400
1,203,032,800
1,271,030,500
1,387,050,100
1.714%
1.609%
1.614%
1.588%
1.151%
1.065%
1.067%
1.060%
1.104%
1.115%
(A) The category "Other Property" is substantially all commerciallindustrial property, plus nomimal amounts of railroad and personal property,
(B) 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.
( C) The Minnesota Legislature reduced some of the "class rates" used to calculate tax capacity value in fiscal years 1999 and 2001
This reduced the amount of market value that converts to tax capacity value.
(D) For fiscal year 2002 and subsequent years, the Minnesota Legislature changed the formula by which state aid
to cities was determined, significantly decreasing the annual amount of state aid received by the City of Columbia Heights,
Some of this decrease was offset by the relatively higher City direct tax rates after 2001
(E) Certain information on the components of tax capacity prior to 2003 is not available.
Source: Anoka County Auditor's Tax Certificate
192
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES (A)
Last Ten Fiscal Years
Table 6
City Overlapping Rates (B)
Fiscal Direct School Special
Year Rate District 13 County Districts (C) Total
1998 30.991% 68.491% 27.845% 7.470% 134.797%
1999 31.925% 68.837% 27.845% 8.460% 137.067%
2000 30.147% 66.465% 29.426% 8.799% 134.837%
2001 30.564% 47.452% (D) 28.125% 8.741% 114.882%
2002 49.114% (E) 38.614% 26.432% 7.098% 121.258%
2003 45.272% 20.303% 34.761% 8.203% 108.539%
2004 47.888% 22.833% 37.617% 7.689% 116.027%
2005 47.859% 19.918% 32.722% 8.048% 108.547%
2006 44.736% 19.505% 29.875% 7.679% 101.795%
2007 41.511% 17.338% 28.626% 7.901% 95.376%
(A) These property tax rates are stated as a percentage of tax capacity value. See Table 5.
(B) Overlapping rates are those of local and county governments that apply to property owners within the City. Most,
but not all, overlapping rates apply to all City property owners. For example, although the school and county
property tax rates apply to all City property owners, special district rates apply only to the City property owners
whose property is located within each special district's geographic boundaries.
(C) Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control
District, N.E. Metro School District 916, Rice Creek Watershed District, Anoka County Housing and
Redevelopment Authority, Anoka County Regional Rail Authority, CountylCity Radio, and the Columbia Heights
Housing and Redevelopment Authority.
(D) For fiscal year 2001 and subsequent years, the Minnesota Legislature enacted several provisions which
substantially reduced school district property tax levies, replacing the tax levy funds with state aid.
(E) For fiscal year 2002 and subsequent years, the Minnesota Legislature changed the formula by which state aid to
cities was determined, significantly decreasing the annual amount of state aid received by the City of Columbia
Heights. Some of this decrease was offset by the increase in the City direct tax rate shown above for 2002 and
subsequent years.
Source: Anoka County Auditor's Tax Certificate
193
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194
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Table 7
2007 1998
Tax
Capacity
Taxpayer Value (A)
Medtronic Inc $202,052
Centro Bradley SPE 5 LLC 148,752
New Heights Development LLC 147,934
Consolidated Realty of Mpls 112,560
Columbia Park Properties 99,068
Equity Partners LLC 87,868
Lynde Investment Co MN Partnership 81,885
Crestview Corporation 74,615
Columbia Heights Center LLC 72,368
Jeffs Bobby & Steve's Auto World 62,618
Northern States Power Co -
Kraus-Anderson Inc -
Maylan Construction Co -
Americana Bank -
Minnegasco -
Total $1,089,720
Total All Property $14,828,257
Rank
1
2
3
4
5
6
7
8
9
10
N/A
N/A
N/A
N/A
N/A
Percentage
of Total City Taxable
Tax Capacity Capacity
Value Value (A)
1.36% $138,000
1.00% -
1.00% -
0.76% 118,432
0.67% 154,482
0.59% -
0.55% 82,765
0.50% 88,061
0.49% -
0.42% -
0.00% 116,748
0.00% 214,600
0.00% 166,686
0.00% 154,800
7.34% $1,338,654
X9,034,181
(A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5.
Source: Anoka County Auditor's Tax Certificate
Percentage
of Total City
Tax Capacity
Rank Value
5 1.53%
N/A 0.00%
N/A 0.00%
7 1.31%
4 1.71%
N/A 0.00%
10 0.92%
9 0.97%
N/A 0.00%
N/A 0.00%
6 1.29%
1 2.38%
2 1.85%
3 1.71%
8 1.15%
14.82%
195
CITY OFCOLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
County
Fiscal Gross Adjustments Adjusted
Year Tax Levy (A) to Levy (B) Tax Levy
1998 $4,161,263 $6,114 $4,167,377
1999 4,197,966 13,081 4,211,047
2000 4,300,078 12,925 4,313,003
2001 4,629,920 4,824 4,634,744
2002 4,824,130 10,868 4,834,998
2003 4,817,984 1,805 4,819,789
2004 5,447,260 2,628 5,449,888
2005 6,102,537 152 6,102,689
2006 6,347,537 (160) 6,347,377
2007 6,500,613 (189) 6,500,424
(A) For years after 2001, the gross tax levy is the levy amount approved annually by City Council resolution prior to
January 1 of the fiscal year indicated. For the years 1997-2001, the levy amount approved annually by City Council
resolution is the gross levy less the amount shown above as state-paid credit. The tax levies included in this table are
only for the City of Columbia Heights taxing district. This table does not include levies by the special taxing district of
Columbia Heights HRA.
(B) Anoka County adjusts the property tax levy adopted by the City Council for certain items. These are primarily
excess tax increment reimbursements and rounding. Abatements or increases of tax to individual taxpayers are not
included in these adjustments.
( C) A portion of each gross property tax levy is paid to the City by the State of Minnesota, and referred to as a credit.
For the years 1997-2001 this is the "Homestead and Agricultural Credit." For the years after 2001, this is the "Market
Value Homested Credit." These credits are reported in the City's financial statements as intergovernmental revenue.
The remaining levy collections are remitted to the City by Anoka County. The County collections are the only portion
of the property tax levy reported as property tax revenue in the City's financial statements.
Source: Anoka County Auditor's Tax Certificate. Also Anoka County Tax Settlement Statements for the City of Columbia Heights.
196
Table 8
Collected Within The Fiscal Year For Which Levied Collections in Total Collections to Date
State-Paid Collections % of Adjusted Subsequent
Credits (C) by County Tax Levy Years Amount
$959,795 $3,163,132 98.93% $31,563 $4,154,490
959,341 3,186,708 98.46% 38,806 4,184,855
1,004,122 3,271,435 99.13% 62,167 4,337,724
1,004,368 3,577,110 98.85% 34,028 4,615,506
570,151 4,192,056 98.49% 32,498 4,794,705
607,323 4,115,967 98.00% 64,941 4,788,231
588,271 4,760,788 98.15% 50,908 5,399,967
568,479 5,412,178 98.00% 77,914 6,058,571
517,322 5,672,909 97.52% 92,471 6,190,231
471,660 5,842,540 97.13% NIA 6,314,200
of Adjusted
Tax Levy
99.69%
99.38%
100.57%
99.58%
99.17%
99.35%
99.08%
99.28%
97.52%
97.14%
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
General General General
Obligation Obligation Obligation
Bonds Repaid Bonds Bonds With Tax Increment Total
Fiscal Only With With Pledged Pledged Special Revenue Capital Governmental
Year General Taxes Tax Increment Assessments Bonds Leases Activities
1998 $ - $5,324,721 $ - $ - $172,822 $5,497,543
1999 - 4,379,721 860,000 - 58,907 5,298,628
2000 - 3,479,721 860,000 - - 4,339,721
2001 - 2,619,721 810,000 - - 3,429,721
2002 - 2,008,206 705,000 - - 2,713,206
2003 - 1,630,288 1,937,828 - - 3,568,116
2004 - 3,264,704 1,773,623 - - 5,038,327
2005 - 1,985,000 1,604,292 - - 3,589,292
2006 - 1,385,000 4,181,569 - - 5,566,569
2007 1,000,000 775,000 3,999,296 2,890,000 - 8,664,296
(A) Based on population and income data in Table 13.
(B) This is the percentage of tax capacity value before adjustments for captured tax increment value
and area-wide allocations. See Table 5.
(C) Net general bonded debt is calculated above as all general obligation bonded debt,
plus tax increment revenue bonded debt.
(D) Based on population data in Table 13.
198
Table 9
Business-Type Activities
General Liquor
Obligation Facility
Bonds With Lease Total
Pledged Utility Revenue Business-Type
Revenues Bonds Activities
All Activities
Total
All Debt
Percentage
of Personal
Income (A)
Per
Capita (A)
$ - $ - $ - $5,497,543 1.4% $294
1,935,000 - 1,935,000 7,233,628 1.8% 387
1,935,000 - 1,935,000 6,274,721 1.6% 339
1,825,000 - 1,825,000 5,254,721 1.3% 284
1,650,000 - 1,650,000 4,363,206 l.l% 233
$2,737,172 - 2,737,172 6,305,288 1.6% 337
2,486,377 - 2,486,377 7,524,704 1.9% 405
2,220,708 - 2,220,708 5,810,000 1.5% 318
3,248,431 - 3,248,431 8,815,000 2.3% 482
2,950,704 5,040,000 7,990,704 16,655,000 4.3% 911
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
Subtotal of
General General Net General
Obligation Bonds Obligation Bonds Bonded Debt
Fiscal Repaid Only With With Pledged Repaid With
Year General Taxes Tax Increment Taxes
1998 $ - $5,324,721 $5,324,721
1999 - 4,379,721 4,379,721
2000 - 3,479,721 3,479,721
2001 - 2,619,721 2,619,721
2002 - 2,008,206 2,008,206
2003 - 1,630,288 1,630,288
2004 - 3,264,704 3,264,704
2005 - 1,985,000 1,985,000
2006 - 1,385,000 1,385,000
2007 1,000,000 775,000 1,775,000
Percentage General
of Estimated Obligation Bonds
Property With Pledged
Value (B) Special Assessments
0.90% $ -
0.71% 860,000
0.53% 860,000
0.35% 810,000
0.24% 705,000
0.17% 1,937,828
0.30% 1,773,623
0.16% 1,604,292
0.11% 4,181,569
0.13% 3,999,296
(A) Based on population and income data in Table 13.
(B) Based on the estimated market value of property in Table 5.
The estimated market value of property bears a stong relationship to the debt capacity of the City.
It should be noted however, that in the State of Minnesota, property tax revenue is dependent
on the tax capacity value of property. Tax capacity value is derived from estimated market value by a
set of class rates and other adjustments as determined by the State legislature. The historical relationship
between estimated market value and tax capacity value for property in the City is shown in table 5.
200
Table 10
Business-Type Activities
All Activities
Subtotal of
General Net General
Obligation Bonds Bonded Debt
With Pledged Repaid With
Utility Revenues Non-Tax Sources
$ - $ -
1,935,000 2,795,000
1,935,000 2,795,000
1,825,000 2,635,000
1,650,000 2,355,000
2,737,172 4,675,000
2,486,377 4,260,000
2,220,708 3,825,000
3,248,431 7,430,000
2,950,704 6,950,000
Percentage
of Personal
Income (A)
$ -
149
151
142
126
250
229
209
406
380
Total
Net General Per
Bonded Debt Capita (A)
$ - $ -
2,795,000 149
2,795,000 151
2,635,000 142
2,355,000 126
4,675,000 250
4,260,000 229
3,825,000 209
7,430,000 406
7,950,000 435
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2007
Table 11
Governmental Unit (A)
Debt repaid with property taxes:
Anoka County
Anoka County RR Authority
Independent School District 13
Metropolitan Council
Subtotal -overlapping debt
City direct debt -governmental activities
Total direct and overlapping debt
$36,625,177
(A) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the
taxpayers of the City. This process recognizes that, when considering the City's ability to issue and repay long-term
debt, the entire debt burden borne by the taxpayers should be taken into account.
(B) The percentage of overlapping debt applicable is estimated using adjusted taxable net tax capacity values of property,
which is the tax capacity value after adjustments for captured tax increment value and area-wide allocations (see Table 5.)
Applicable percentages were estimated by determining the portion of each governmental unit's tax capacity value
that is within the City's boundaries and dividing it by each unit's total tax capacity value.
Source: Anoka County Auditor's Tax Certificate and Metropolitan Council Report of Outstanding Indebtedness.
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable (B) Debt
$124,025,000 4.67% $5,791,968
39,710,000 4.67% 1,854,457
27,580,000 70.24% 19,372,192
204,840,000 0.46% 942,264
27,960,881
8,664,296 100.00% 8,664,296
202
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Table 12
Legal Debt Margin Calculation for Fiscal Year 2007
Taxable market value of property
Debt limitation percentage (A)
Debt Limit
Net debt applicable to limit (B)
Legal debt margin
Legal debt margin as a percentage of limit
Legal Debt Margin Calculation for Fiscal Years 1998 Through 2006
$1,362,783,000
2%
$27,255,660
1,000,000
$26,255,660
96.33%
Net Debt
Fiscal Debt Applicable to
Year Limit Limit
Legal
Debt
Margin
Legal Debt
Margin as a
Percentage
of Debt Limit
1998 $11,817,120 $ - $11,817,120 100.00%
1999 12,257,130 - 12,257,130 100.00%
2000 13,156,094 - 13,156,094 100.00%
2001 14,386,974 - 14,386,974 100.00%
2002 15,506,730 - 15,506,730 100.00%
2003 17,102,916 - 17,102,916 100.00%
2004 19,133,440 - 19,133,440 100.00%
2005 21,831,836 - 21,831,836 100.00%
2006 24,490,232 - 24,490,232 100.00%
(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 market value of taxable property in the municipality."
(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 defmite 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.
203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED-REVENUE COVERAGE
Last Ten Fiscal Years
Table 13
Fiscal Non-General Obligation debt for Which
Year Specific Revenues are Pledged
1998-2006 None
2007 Economic Development Authority:
Tax Increment Revenue Bonds Series 2007, debt service begins 2008
Lease Revenue Bonds Series 2007B, debt service begins 2008
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
204
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Table 14
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
1998 18,699 $399,560,232 $21,368 2.10%
1999 18,699 399,560,232 21,368 2.20%
2000 18,520 395,735,360 21,368 2.70%
2001 18,529 395,927,672 21,368 3.60%
2002 18,698 399,538,864 21,368 4.50%
2003 18,698 399,538,864 21,368 4.70%
2004 18,600 397,444,800 21,368 4.40%
2005 18,261 390,201,048 21,368 3.80%
2006 18,288 390,777,984 21,368 3.90%
2007 18,288 390,777,984 21,368 4.60%
Sources are as follows:
Population: Data for the years 2000-2002, 2004-2006 provided by the Metropolitan Council. Data for the years
1998,1999, 2003, and 2007 are not available. These years are estimated as equal to next available prior year.
Per Capita Income: All years estimated as equal toper capita income reported in the 2000 U.S. Census.
Total Personal Income: Estimated as per capita income for the year 2000 multiplied by population figure for each year.
Unemployment Rate: Provided by MN Department of Employment and Economic Development.
205
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206
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Table 15
2007 1998
Percentage of Percentage of
Total Anoka Total Anoka
County (A) County (A)
Principal Employers Within City Employees Rank Employment Employees Rank Employment
Medtronic Inc 619 1 0.33% 275 2 0.16%
Independent School District 13 (B) 435 2 0.23% 530 1 0.30%
Crestview Corporation 231 3 0.12% 170 4 0.10%
City of Columbia Heights 203 4 0.11% 189 3 0.11%
Columbia Park Clinic 108 5 0.06% - - 0.00%
Rainbow Foods 78 6 0.04% 130 5 0.07%
Invest Cast 70 7 0.04% 50 9 0.03%
Unique Thrift Store 65 8 0.04% unavailable unavailable unavailable
La Casita Mexican Restaurant 62 9 0.03% - - -
US Post Office 49 10 0.03% unavailable unavailable unavailable
SIS Enterprises Inc - - - 90 6 0.05%
K-Mart - - - 80 7 0.05%
LTA Corporation - - - 60 8 0.03%
Total 1.920 1.04% 1.574 0.90%
~- ,~ ~~ ~~
(A) Employment data is not compiled for individual cities within Minnesota counties.
(B) Data shown for Independent School District 13 represents only those employed within the City of Coumbia Heights.
Sources:
2007 data estimates from May 2007 written and telephone survey, the 2007 Minnesota State Business Directory and the
2007 Minnesota Manufacturers Register, with data for the City of Columbia Heights employees adjusted to actual data
in Table 15.
1998 data estimates from Minnesota Manufacturers Register, 1998 edition, and phone survey of individual employers
listed March 1999, with data for the City of Columbia Heights employees adjusted to actual data in Table 15.
207
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BYFUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
General government
Mayor/Council
Administration
Finance
Public Safety:
Police
Fire
Public Works
Culture and Recreation:
Library
Parks
Recreation
Community Development
Water
Sewer
Refuse
Storm Sewer
Liquor
Total
Employees as of December 31,
1998 1999 2000 2001
189
5 5 5 5
7 7 7 7
14 13 13 13
35 35 37 35
34 34 34 34
18 18 20 20
20 20 21 19
5 5 5 5
11 12 11 13
8 8 10 7
4 4 4 4
4 4 4 4
24 24 27 28
189
Source: Organizational Chart in the City of Columbia Heights CAFR.
198
Note: The above table shows the distribution of all employees by head count (including full-time,
part-time and paid on-call), by function. This bears a strong relationship to the distribution of
employee costs across functions. However, many employees provide services to more than one
function, and employee costs are charged to each function based on the services received by each function.
194
208
Table 16
Employees as of December 3 1,
2002 2003 2004 2005 2006 2007
5 5 5 5 5 5
7 5 5 5 4 4
13 13 12 12 12 13
35 31 30 30 31 31
34 40 39 35 36 33
20 17 18 16 17 16
19 19 19 21 22 22
5 5 5 5 5 5
13 13 13 15 16 16
7 7 6 7 7 7
4 4 4 4 4 5
4 4 4 4 4 4
28 35 37 37 37 42
194 198 197 196 200 203
209
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Fiscal Year
Function/Program 1998 1999
General government
Resolutions approved by City Council 119 97
Ordinances adopted by City Council 13 19
Public Safety:
Police:
Part I crimes (B) 986 1,065
Part II crimes (B) 2,212 2,367
Fire:
Emergency medical calls (B) 1,468 1,539
Fire calls (B) 436 419
Inspections (B) 2,320 1,957
Public Works
Street paving and patching (tons of asphalt) not avail not avail
Street sweeping (tons of debris) 929 808
Trees removed 129 190
Culture and Recreation:
Library:
Items in collection 71,227 69,628
Circulation 136,943 130,810
Reference inquiries 24,071 16,899
Parks and recreation:
Athletics participants (C) 2,503 2,790
Other programs, estimated attendance (D) 8,000 8,000
Number of paid room rentals 99 90
Community Development:
Number of business licenses issued 428 403
Number of building permits issued (E) 1,466 1,895
Construction value of permits issued $16,991,747 $24,018,811
Water
Consumption (thousands of gallons) 627,908 639,632
Sewer (sanitary)
Wastewater (thousands of gallons) 576,900 578,000
Miles of line cleaned/rodded/root-sawed 26 14
Refuse
Refuse (tons) 7,746 7,388
Recycling (tons) 1,878 1,878
Yardwaste (tons) 772 803
Storm Sewer
No operating indicators available not avail not avail
Liquor
Number of units sold not avail not avail
(A) In 2006, the City significantly increased enforcement of ordinances concerning nuisancelhazardous conditions
of properties within the City. The number of resolutions for 2006 sharply increased because one resolution was
approved for each enforcement action.
(B) Public safety operating indicators include services provided to the City of Hilltop under contractual agreements.
The City of Hilltop is completely encircled by the City of Columbia Heights and has a population of 766 (based on 2000 census information).
(C) This operating indicator includes duplicate counts for particpation in more than one team/league by some persons.
(D) This operating indicator includes duplicate counts for attendance at more than one program b y some persons.
It is rounded to the nearest thousand attendees based on review of attendance data.
(E) This operating indicator includes inspection permits issued for new construction,
building alterationladdition, plumbing, heating, street excavation and sign installation.
(F) The construction value of building permits issued in 2004 includes $30,573,000 for a water
filtration plant owned and operated by the City of Minneapolis within the City of Columbia H eights.
Sources: Various City departments.
2000
94
21
1,068
2,406
1,595
472
3,999
not avail
840
157
70,449
125,098
16,472
2,306
10,000
236
399
1,340
$6,767,183
558,355
559,300
9
8,069
1,967
741
not avail
not avail
210
Table 17
Fiscal Year
2001 2002 2003 2004 2005 2006 2007
77 70 57 87 92 234 (A) 198
13 4 19 7 20 14 12
971 992 1,056 1,229 1,280 1,167 1,246
2,670 3,142 3,225 3,435 3,496 3,184 3,144
1,607 1,660 1,702 1,653 1,873 1,806 1,888
422 4,777 380 483 581 387 445
3,495 3,562 4,616 2,077 2,379 3,709 4,603
not avail not avail 1,220 1,271 409 710 1,910
708 990 640 1,064 658 637 648
159 175 143 261 296 188 357
72,324 71,439 71,409 73,105 68,226 70,354 71,594
119,555 119,082 116,917 116,533 115,598 119,593 125,222
14,447 14,383 18,427 14,670 17,225 15,106 13,715
2,792 3,015 2,558 2,139 1,988 1,654 1,537
10,000 9,000 9,000 9,000 9,000 9,000 8,000
238 223 132 134 164 191 185
378 313 295 307 327 342 306
1,235 1,216 1,176 1,159 1,304 1,701 1,313
$12,547,885 $8,362,360 $11,056,530 $50,322,414 (F) $13,041,878 $26,798,827 $22,230,118
557,934 566,169 579,322 538,358 527,621 529,581 538,844
584,100 598,074 553,955 552,427 547,303 531,054 526,100
6 7 17 28 28 39 27
8,202 8,241 7,670 8,348 8,863 8,397 6,587
2,045 1,915 1,873 1,783 1,863 1,721 1,522
794 824 809 862 892 645 654
not avail not avail not avail not avail not avail not avail not avail
not avail not avail not avail not avail 798,900 758,000 768,000
211
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BYFUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
General government:
City hall square footage (A)
Public Safety:
Police Stations (A)
Fire Stations (A)
Public Works:
Trunk highway miles
County road miles
City street miles
Alley miles
Culture and Recreation:
Libraries
Parks and recreation:
Parks
Playgrounds
Murzyn Hall square footage
Community Development:
Senior high-rise apartments
Water:
Watermain miles
Sewer
Sanitary sewer miles
Refuse
Recycling centers
Storm sewer
Storm sewer miles
Liquor
Stores owned
Stores leased
Fiscal Year
1998 1999 2000 2001
28,530 28,530 28,530 28,530
1 1 1 1
1 1 1 1
3 3 3 3
6 6 6 6
62 62 62 62
19 19 19 19
1 1 1 1
13 13 13 13
11 11 11 11
22,000 22,000 22,000 22,000
145 145 145 145
66 66 66 66
59 59 59 59
1 1 1 1
34 34 34 34
1 1 1 1
2 2 2 2
(A) Square footage reported for City hall includes the City's police and fire stations.
(B) Murzyn Hall is a banquest facility and community center located in the City's largest park.
Sources: Various City departments.
212
Table 18
Fiscal Year
2002 2003 2004 2005 2006 2007
28,530 28,530 28,530 28,530 28,530 28,530
1 1 1 1 1 1
1 1 1 1 1 1
3 3 3 3 3 3
6 6 6 6 6 6
62 62 62 62 62 62
19 19 19 19 19 19
1 1 1 1 1 1
13 13 13 13 13 13
11 11 ll 11 11 ll
22,000 22,000 22,000 22,000 22,000 22,000
145 145 145 145 145 145
66 66 66 66 66 66
59 59 59 59 59 59
1 1 1 1 1 1
34 34 34 34 34 34
1 1 1 1 1 1
2 2 2 2 2 2
213
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214
IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION
215
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216
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT DN CGMPLIANCE WITH MINNESOTA LEGAL CGMPLIANCE
AUDIT GUIDE F4R LOCAL GGVERNMENT
To The Honorable Mayor and
Members of the City Council
City of 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, 2007, and have issued our report thereon dated
dune 19, 2008.
'~Ne 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 foY 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 forLocal Government covers seven main
categories of .compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, claims and disbursements, miscellaneous
provisions and tax increment financing. our study included all of the above 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 of Columbia Heights,
Minnesota's City council and management and is not intended to be, and should not be, used
by anyone other than these specif ed parties.
~~~ ~ r ~
~r~~
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
3une 19, 2005
4810 White Bear Parkway White Bear Lake, Minnesota 55110 ~ 651 426 7000 651 426 5004 Fax I www.hlbtr.c0m
HL6 Tautges Retlpat~, Ltd, is a member of InternationaF, a world-wide organization of accounting firms and business advisors. Equal Opportunity Employer
ZI7
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Tautges Redpath, Ltd.
Certified Public Accountants and Gansu Cants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT O.F FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH Gd YER~.~VIE~T A U~l~I~'G STA~DAR.DS
To The Honorable Mayor and
Members of the City Council
City of 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, 2007 which
collectively comprise the City of Columbia Heights, Minnesota's basic financial statements,
and have issued our report therein, dated dune 19, 2008. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and
the standards applicable to f nancial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Uver Financial Reporting
In planning and performing our audit, we considered the City of Columbia Heights,
Minnesota's internal control over f nancial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of the City of Columbia Heights,
Minnesota's internal control over fnancial reporting. Accordingly, we do not express an
opinion on the effectiveness of the City of Columbia Heights, Minnesota's internal control
over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and would not necessarily identify all deficiencies in
internal control over f nancial reporting that.might be significant def ciencies or material
weaknesses. However, as discussed below, we identified certain deficiencies in internal
control over fnancial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course. of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination of control def~eiencies, that adversely affects the entity's ability
to initiate, authorize, record, process, or report f nancial data reliably in accordance with
generally accepted accounting principles such that there is more than a remote likelihood that
a misstatement of the entity's financial statements that is more. than inconse~,uential will not
be prevented or detected by the entity's internal control over financial reporting. We
consider the deficiencies 2Q07-1 through 2007-2 described in the accompanying schedule of
4810 White Bear Parkway White Bear Lake, Minnesota 55110 1651 426 7000 651 4Z6 5004 Fax I www.hlbtr.com
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findings and questioned costs to be significant deficiencies in internal control over f nancial
reporting.
A material weakness is a signif cant deficiency, or combination of significant def ciencies,
that results in more than a remote likelihood that a material misstatement of the f nancial
statements will not be prevented or detected by the entity's internal control.
our consideration of the internal control over f nancial reporting was for the limited purpose
described in the first paragraph of this section and would not necessarily identify all
def ciencies in the internal control that might be significant def ciencies and, accordingly,
would not necessarily disclose all significant def ciencies that are also considered to be
material weaknesses. However, we believe that the significant deficiencies described above
are not a material weakness.
Compliance and ether Matters
As part of obtaining reasonable assurance about whether the City of Columbia Heights,
Minnesota's f nancial 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.
The City of Columbia Heights, Minnesota's response to findings identified in our audit are
described in the accompanying schedule of findings and questioned costs. Vie did not audit
the City of Columbia Heights, Minnesota's response and, accordingly, we express no opinion
on it.
This report is intended solely for the information and use of the City of Columbia Heights.,
Minnesota's City Council and management and federal awarding agencies and pass-through
entities and is not intended to be, and should not be, used by anyone other than these
specified parties.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
June 19, 2008
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Tautges Redpath. Ltd.
Certified Public Accountants and Consultants
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE
TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To The Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
Compliance
Vie have audited the compliance of the City of Columbia Heights, Minnesota, with the types
of compliance requirements described in the U S. ~f~ce of Management and Budget (~~~)
Circular A-133 Compliance SuBplement that are applicable to each of its major federal
programs for the year ended December 3 1, 2007. 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.
fur 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 f nancial audits
contained in Government Auditing Standards, issued by the Comptroller General of the
United States; and FMB Circular A-133, Audits of States, Local Governments, and l~on-
Pro~t organizations. Those standards and FMB 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 an 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. ~e belie~ie that our audit provides a reasonable basis for our, opinion. Dur
audit does not provide ~a legal. determination on the City of Columbia Heights, Minnesota's
compliance with those requirements.
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 3I, 2007.
4$10 White Bear Parkway White Bear Lake, Minnesota 55110 1551 426 7000 651 426 5004 Fax E www.hEbtr.com
HLB Tautges Redpalh, Ltd. is a member of International, a world-wide organization of accounting firms and business advisors. Equal Opportunity Employer
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Internal Control goer Compliance
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 requireme~ats that could have a direct and material effect on a major federal
pragram in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness
of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City of Columbia Heights, Minnesota's internal control over compliance.
A control def ciency in an entity's internal control aver compliance exists when the design or
operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect noncompliance with a type of
compliance requirement of a federal program on a timely basis. A significant deficiency is a
control deficiency, or combination of control def ciencies, that adversely affects the entity's
ability to administer a federal program such that there is mare than a remote likelihood that
noncompliance with a type of compliance requirement of a federal program will not be
prevented or detected by the entity's internal control. We consider the deficiencies 2047-3
through 2407-4 described in Section lil of the accompanying schedule of findings and
questioned costs to be signif cant deficiencies in internal control over compliance.
A material weakness is a significant def ciency, or combination of significant deficiencies,
that results in more than a remote likelihood that material noncompliance with a type of
compliance requirement of a federal program will not be prevented ar detected by the
entity's internal control.
Our consideration of internal control over compliance was for the limited purpose described
in the first paragraph of this section and would not necessarily identify all deficiencies in
internal control. that might be significant deficiencies or material weaknesses_ We did not
identify any deficiencies in internal control over compliance that we consider to be material
weaknesses, as defined above.
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
Columbia Heights, Minnesota as of and far the year ended December 31, 2007, and have
issued our report thereon dated dune ~ 9; 2048. Our audit was conducted for the purpose of
forming opinions on the financial statements that collectively comprise the City of Columbia
Heights, Minnesota's basic f nancial statements. 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 f nancial statements. Such
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226
information has been subjected to the auditing. procedures applied in the audit of the basic
f nancial 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 management, the City of
Columbia Heights, Minnesota's City Council and management and federal awarding
agencies and pass-through entities and is not intended to be, and should not be, used by
anyone other than these specified parties.
f ~~ /~ , ~
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
dune 19, 2005
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CITY 4F COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF E~PEND~TURES OF FEDERAL AWARDS
For The Year Ended December 3 1, 2007
Federal Funding Source)
Pass Through Agency) CFDA Federal
Program Title Number Expenditures
U.S. Department of Housing and Urban Development:
Passed-through Anoka County:
Community Development Block Grant - (CDBG} 14.215 $296,240
Direct:
Low Rent Public Housing. (Operating Fund Subsidy} 14.550 159,624
Public Hauling Capital Fund Program (CFP} 14.872 185,2$7
Total U.S. Department of Housing and Urban Development 641,15 ~
U.S. Department of Justice:
Direct:
BulletpraofVest Partnership Program !6.607 2,000
Public Safety Partnership and Community Policing Grants:
Secure Our Schools 2006 16.710 44,504
Secure Qur Schools 2007 16.710 5,4$3
Total ll.S. Department of Justice 53,957
U.S. Department of Homeland Security:
Passed-through Anoka County:
Civil Defense Grant 97.042 2,252
U.S. Department of Transportation:
Passed-through Anoka County:.
Safe and Sober Grant ~ 20.601 7,652
Passed-through State of Minnesota Department of Public Safety:
Safe and Sober Grant 20.601 3,000
operation Night Cap 20.605 17,4$5
Total U.S. Department of Transportation 28,137
Total Federal Expenditures $725,527
229
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE ~F E~PEND~TURES OF FEDERAL AWARDS
For The Year Ended December 3 ~ , 2007
Notes to the schedule of expenditures of federal awards
Note 1. Basis of Presentatiolr
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 of OMB Circular A-133, Audits of
States. Local Governments, and Non-Profit Organirations_ Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the basic financial statements.
Nate ?. Suhreripients
During 24147, the City of Columbia Heights did not pass federal money to subrecipients.
Nate 3. Repa•ti~ig Entity
The City of Columbia Heights, Minnesota, for purposes of this schedule includes all funds of the primary
government as def ned by GASB Statement No. l4, 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.
Nate 4; Sc•Jredule of Statement and Cerli~cation of Actual Moderrrizatian Costs:
A. The actual mopdernization costs areas follows:
Funds approved
Funds (expended}
Excess of funds approved (expended}
FY 2045 FY 2006 1=Y 2007
MN 46P14550145 MN 46P10550106 MN 46P14554147
$1 l 4,226 $144,026 $106,482
(l 14,226) (83,933} (50,377)
. $0 ~ 10,093 $56, l05
Funds advanced - HUD CFP Grants $62,405 $22,863 $0
Funds (expended}:
In prior years (62,405) (3 0,840} -
lncurrent year (51,82I } (83,fl93} (50,377}
Excess of funds advanced (expended) ($51,821} ($71,410} ($50,377)
B. The distribution of costs by project as shown on the Final Statement of Development Cast budget, accompanying
the Actual Development cost Certificate submitted to HUD for approval, is in agreement with the Gity's records.
C. All modernization costs have been paid and ail related liabilities have been discharged through payment.
230
CITY OF CQLUMBI~A HEIGHTS, MINNESOTA
SCHEDULE aF FINDINGS AND QUESTIONED CASTS
For The Year Ended December 3I, 2007
SECTION I -SUMMARY OF AUDIT RESULTS
Financial Statements
A. Type of auditors' report issued: Unqualified
B_ Internal control over financial reporting:
• Material weakness(es)- identified? Yes. X No
• Significant deficiencies identified that are not X Yes None
considered to be material weaknesses? reported
C. Noncompliance material to financial statements Yes X No
noted?
Federal Awards
D. Internal control over major programs:
• ,Material weakness(es) identified? Yes X No
Significant deficiencies identified that are not X Yes None
considered to be material weaknesses? reported
E. Type of auditors' report issued on compliance for Unqualified
major progams:
F_ Any audit findings disclosed that are required to be Yes X None
reported in accordance with section 510(a) of reported
Circular A-133?
G. Identification of major programs. .
Name of Federal Program CFDA Number
Community Development Block Grants/Entitlement 14.218
Grants
Public Housing Capital Fund (CFP) 14.872
H. Dollar threshold used to distinguish between Type A ~ $3OO,Q~~
1
and Type B programs:
I. Auditee qualified as a low-risk auditee Yes ~ No
231
CITY OF CULUMBIA HEIGHTS, MINNESOTA
SCHEDULE DF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2407
SECTION II -FINANCIAL STATEMENT FINDINGS
2007-1 Adopting Special Assessment Rolls
Condition and Criteria: The City adopts new special assessment rolls by council
resolution. The City council Resolution 200617 adopted the special assessments for
Huset Parkway project x444. The resolution did not include the dollar amount of the
assessment roll. Information included in the council packet indicated the amount of the
assessment roll to be $1,677,464. The amount actually levied was $1,667,460, or
$10,044 less than the amount disclosed in the council packet information. Additionally,
the list of amounts by parcel does not include a total for all parcels, which does not allow
for ven~catian by total.
Cause: See condition.
Effect: The City may not collect the full amount of the assessments intended to be
adopted.
~ecomrnendation: we recommend the resolution adopting assessments include the total
dollar amount of the assessment. we further recommend the body of the resolution
include a list of each parcel and the dollar amount of the assessment related to each
parcel.
Views of Responsible Officials and Corrective Action Plan: This matter has been
communicated to the director of the City Department (Public Works) responsible for the
assessment roll for Huset Parkway Project Q404.
232
CITY 4F COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIQNED CGSTS
For The Year Ended December 31, 2007
2007-2 Timely Billing of Services
Condition and Criteria: Certain costs incurred on City projects are to be reimbursed by
the developers. The invoicing of these costs are coordinated and prepared by the
department providing the service. At December 31, 2006, the City recorded a receivable
from various developers as reimbursement for certain costs totaling $23,235.50. As of
March I7,~ 2005, these costs had not been billed to the developer.
Cause: Unknown.
Effect: The ability to collect amounts due from developers maybe diminished by not
billing in a rimely manner.
Recommendation: we recommend the City review its controls in this area and make the
appropriate changes to ensure billings are made in a timely manner and coordinated with
the City's f Hance department.
Views of Responsible Officials and Connective Action Plan: This matter has been
communicated to the directors of the City Departments (Public Works and Community
Development) responsible for initiating billing services provided under development
agreements, and they have expressed their intent to bill these services.
233
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE 4F FINDINGS AND QUESTIGNED COSTS
For The Year Ended December 3 1, 2007
SEeTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
2047-3 Public Housing Capital Fund, 14.872
Condition and Criteria: The HRA has not requested reimbursement of CFP expenditures
in a timely manner. During the fiscal year 2007, the HRA expended $185,287 relating to
the CFP program. As of December 3I, 2007, the HRA had requested reimbursement far
$ 12,023 of the 2007 expenditures. The following schedule presents expenditures by
month and the amount reimbursed:
Month Amount Amount
_ Expended __ _ Expended Reimbursed
.April $S,b45 X5,645
May 6,375 6,375
June 109,551 -
July 41,b56 -
August 425 -
September 18,072 -
4etober 3,ZG0 -
Total $185,2 $7 $12,023
Cause: The ~ HRA contracts with an outside management company to provide these
services. The HRA has not diligently monitored the management company to ensure that
reimbursement requests are handled in a.timely manner.
Effect: The risk of non compliance is higher in this regard, as lost. funding could be a
factor if submission to HUD does not occur until after the period of availability.
Recommendation: ~U'e recomrnend the HRA take measures to ensure that the submission
of reimbursements to HUD is completed on a timely basis.
Views of Responsible Officials and Con-ective Action Plan: Subsequent to December 31,
2007 but prior to the date of this report, the HRA contracted with a new housing
management company to perform this reimbursement function. The new housing
management company has substantial experience in this area. The HRA Executive
Director has assigned to the Community Development Director the responsibility to
review that the new housing management company timely performs this function.
234
CITY GF CaLUMB~A HEIGHTS, MINNESGTA
SCHEDULE DF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 3 1, 2007
2007-4 Public Housing Capital Fund,14~.872; CDBG 14.218
Criteria: Non-federal entities are prohibited from contracting with or making sub-awards
under covered transactions fuse of federal awards) to parties that are suspended or
debarred. The HRA/EDA is responsible for ensuring these companies are not being used.
Condition: The HR.AJEDA does not have documentation that includes a verification
check was made to ensure the Contractor was not suspended or debarred,
Cause: The HR.AIEDA did not properly implement controls.to check for the suspension
or debarment of the contractor used.
Effect: The risk ofnon-compliance is higher as the HRA/EDA does not have proper
controls in place to check for suspended or debarred contractors.
Recommendation: VVe recommend the HRAIEDA take measures to ensure that they are
checking for suspended or debarred contractor and retaining that information.
Views of Responsible Officials and Corrective Action Plan: A procedure to document a
timely search of the federal excluded parties list will be added by the Community
Development Director to the City/EDA/HRA contracting process for these two federal
programs.
IV -PRIOR YEAR FINDINGS
No federal award f ndings for 200.
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Tautges Redpath, Ltd.
Certified Pub is Accountants and Consultants
REPORT ON SUPPLEMENTARY INFDRMATI4N -
FINANCIALDATA SCHEDULE
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
we have audited the financial statements of the governmental activities; the business-type
activities, each mayor fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota as of and for the year ended December 31, 2007, and have
issued our report thereon dated June 19, 2oa$. 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. 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 f nancial
statements. Such information has been subj ected 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 of Columbia Heights,
Minnesota and federal awarding agencies and pass-through entities and is not intended to be,
and should not be, used by anyone other than those specif ed parties.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
June 1 ~, 2oas
4810 White Bear Parkway White Bear Lake, Minnesota 55110 ~ 651 426 7000 651 426 5004 Fax I www.hlbtr.cOm
Hl6 Tautges Retlpath, Lttl. is a member of • International, a world-wide organization of accounting firms and business advisors. Equal Opportunity Employer
237
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23$
C1TY OF CULUMBIA HEIGHTS, MINNESOTA
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE
As of And For The Year Ended December 31, 2007
Line
Item Account Description
Current Assets:
Current assets:
111 Cash -unrestricted
100 Total cash
Accounts and notes receivable:
122 Accounts receivable -HUD other projects
125 Accounts receivable -miscellaneous
126 Accounts receivable - tenants ~ dwelling rents
129 Accrued interest receivable
120 Total receivables, net of allowance
144 Interprogram -due from
150 Total current~assets
Noncurrent assets:
Capital assets:
161 Land
1 b2 Buildings
163 Furniture, equipment and machinery -dwellings
164 Furniture, equipment and machinery -administration
160 Total capital assets
166 Less: accumulated depreciation
Total capital assets, net of accumulated depreciation
i $0 Total noncurrent assets
190 Total assets
Liabilities:
Content liabilities:
3 l Z Accounts payable ~~ 90days
321 Accrued wageslpayroll taxes payable
333 Accounts payable -other governments
341 Tenant security deposits
345 tither current liabilities
347 Inteirpragram - due to
310 Total current liabilities
350 Total noncurrent liabilities
300 Total liabilities
Net Assets:
508.1 Investment in capital assets, net of related debt
S 12.1 Unrestricted
513 Total net assets
Public Housing Public Housing
Operating Capital Fund
Subsidy Program
14.850 14.$72
$553,596 $ -
553,596 0
- 173,268
6,202 -
3,429 -
4,250 -
13,881 173,26$
173,268 -
740,745 173,2b8
177,375 -
2,794,74$ -
292,253
5,144 -
3,269,520 0
(2,044,827) -
1,224;693 0
1,224,693 0
1,965,438 173,268
$31,947 -
1$,222 -
I4,2I2 -
26,$58 -
- 173,268
91,239 173,268
a o
91,239 173,26$
1,324,693 -
549,506 -
$1,574,199 ~~
239
CITY OF COLUMBIA HEXGHTS, MINNESOTA
U.S. DEPARTIVIENT OF HOUSING AND URBAN DE'~ELOPNIENT
FINANCIAL DATA SCHEDULE
As of And For The Year Ended December 31, 2007
Page 2,of 2
Public Housing Public Housing
Operating Capital Fund
Line Subsidy Program
Item Account Description 14.850 14.872
Revenue:
703 Net tenant rental revenue ~ $307,493 $ -
704 Tenant revenue -other 9,795 -
706 HUD PHA grants 159,b20 185,29-1
711 ~lnvestment income -unrestricted 31,870 -
715 Other revenue 6,202 -
700 Total revenue 514,980 185,291
Expenses:
911 Administrative salaries 22,463 -
912 Auditing fees 1,665 -
913 Outside management fees 140,160
916 Other operating -administrative 12,139 -
924 Tenant services -other 556 -
931 V~ater 11,804 -
932 Electricity 45,246 -
933 Gas 60,212 -
938 Other utilities expense 11,998 -
942 Ordinary maintenance and operations -materials and other 6$,625 -
943 Ordinary maintenance and operations -contract costs 45,220 -
961 Insurance premiums 14,233 -
962 Otlier general expenses 2,705 -
963 Payrnents~ in lieu of taxes 18,222 -
969 Tatal operating expenses 461,245 0
974 Depreciation 112,357 -
900 Total expenses 573,635 0
1001 Operating transfers in 155,291 ~ -
1~02 operating transfers out - X185,291}
1010 Total other f nancing sources fuses} ~ 1$5',291 (185.,291
IODD Excess ~def ciency} of total revenue over sunder} total expenses 126,b36 0
Memo aceount~ information:
1103 Beginning equity 1,747,563 -
1104 Prior period adjustments, equity transfers and correction of errors - -
1113 Maximum annual contributions commitment (per ACC} NIA NIA
1115 Contingency reserve, ACC program reserve NIA NIA
1116 Total annual contributions available NIA NIA
1120 Unit months available 1,200 NIA
1121 Number of unit months leased 1,195 NIA
24O