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HomeMy WebLinkAbout2003 CAFR ' COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS ' STATE OF MINNESOTA i FOR THE YEAR ENDED ' i DECEMBER 31, 2003 1 Finance Department William J. Elrite, Finance Director 1 1 1 1 1 1 1 1 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Principal City Officials 3 Organizational Chart 5 Letter of Transmittal 7 Certificate of Achievement for Excellence in Financial Reporting 15 II. FINANCIAL SECTION Independent Auditor's Report 19 Management's Discussion and Analysis 23 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets Statement 1 36 Statement of Activities Statement 2 38 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 90 Budgetary Comparison Schedule -Anoka County CDBG Statement 11 92 Budgetary Comparison Schedule -Note to RSI 93 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 12 100 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 13 101 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 14 105 Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 15 109 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: Community Development Statement 16 112 Cable Television Fund Statement 17 113 Library Fund Statement 18 114 D.A.R.E. Program Statement 19 115 Fund Balance -Actual: Special Projects Statement 20 116 C.H.A.S.E. Statement 21 117 Twenty-First Century Grant Statement 22 118 Confiscated Property Statement 23 119 Local Law Enforcement Block Grant Statement 24 120 COPS MORE 96 Statement 25 121 Juvenile Justice Grant Statement 26 122 COPS School Partnership Grant Statement 27 123 Recreation Contributed Projects Statement 28 124 Contributed Projects Statement 29 125 Flex Benefit Fund Statement 30 126 Police/Fire Contingency Statement 31 127 Housing and Redevelopment Authority (Component Unit): Combining Balance Sheet Statement 32 128 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance Statement 33 129 Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: Parkview Villa North Statement 34 130 Parkview Villa South Statement 35 131 Rental Housing Statement 36 132 1 i 1 1 1 1 1 i 1 1 1 1 1 1 1 i 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. Economic Development Authority (Component Unit): Combining Balance Sheet Statement 37 133 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance Statement 38 134 Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: Economic Development Authority Administration Statement 39 135 Business Revolving Loan Fund Statement 40 136 Fund Balance -Actual: Section 8 Statement 41 137 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 42 141 Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 43 142 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 44 147 Subcombining Schedule of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 45 151 Enterprise Funds: Water Utility Fund: Subcombining Schedule of Net Assets Statement 46 156 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 47 157 Subcombining Schedule of Cash Flows Statement 48 158 Sewer Utility Fund: Subcombining Schedule of Net Assets Statement 49 159 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 50 160 Subcombining Schedule of Cash Flows Statement 51 161 Refuse Utility Fund: Subcombining Schedule of Net Assets Statement 52 162 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 53 163 Subcombining Schedule of Cash Flows Statement 54 164 Storm Sewer Utility Fund: Subcombining Schedule of Net Assets Statement 55 165 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 56 166 Subcombining Schedule of Cash Flows Statement 57 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Reference Page No. Liquor Fund: , Subcombining Schedule of Net Assets Statement 58 168 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 59 169 Subcombining Schedule of Cash Flows Statement 60 170 ' Internal Service Funds: Combining Schedule of Net Assets Statement 61 172 ' Combining Schedule of Revenues, Expenses and Changes in Fund Net Assets Schedule of Cash Flows Combinin Statement 62 Statement 63 173 174 , g Central Garage Fund: Subcombining Schedule of Net Assets Statement 64 175 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 65 176 Subcombining Schedule of Cash Flows Statement 66 177 Data Processing Fund: Statement 67 178 Subcombining Schedule of Net Assets Subcombining Schedule of Revenues, Expenses and Changes in Statement 68 179 Fund Net Assets Statement 69 180 Subcombining Schedule of Cash Flows ' Insurance Fund: Subcombining Schedule of Net Assets Statement 70 181 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 71 182 Subcombining Schedule of Cash Flows Statement 72 183 , Compensated Absences Fund: Subcombining Schedule of Net Assets Statement 73 184 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 74 185 ' Subcombining Schedule of Cash Flows Statement 75 186 Combining Statement of Changes in Assets and Liabilities -Agency Funds Statement 76 188 Capital Assets Used in the Operation of Governmental Funds: Schedule By Source Statement 77 191 ' Schedule By Function and Activity Statement 78 192 Schedule of Changes By Function and Activity Statement 79 194 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. Supplementary Financial Information: Combined Schedule of Bonds Payable Exhibit 1 196 III. STATISTICAL SECTION (UNAUDITED) Government-Wide Information: Government-Wide Expenses By Function Table 1 202 Government-Wide Revenues Table 2 204 Fund Information: General Governmental Expenditures by Function Table 3 206 General Governmental Revenues by Source Table 4 207 Tax Levies and Tax Collections Table 5 208 Assessed Value, Tax Capacity, and Estimated Actual Value of all Taxable Property Table 6 209 Tax Rates -Per $100 of Tax Capacity Table 7 210 City Tax Levy Table 8 211 Principal Taxpayers Table 9 212 Special Assessment Levies and Collections Table 10 213 Computation of Legal Debt Margin Table 11 214 Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General Obligation Bonded Debt Per Capita Table 12 215 Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt to Total General Governmental Expenditures Table 13 216 Computation of Direct and Overlapping Debt Table 14 217 Revenue Bond Coverage: Water, Sewer, and Storm Sewer Funds Table 15 218 Property Value and Construction Table 16 219 Miscellaneous Statistics Table 17 220 Demographic Statistics Table 18 222 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page Reference No. IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Governments 225 Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 229 Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance , with OMB Circular A-133 233 Schedule of Findings and Questioned Costs 239 , Schedule of Expenditures of Federal Awards 245 l h d i l D S i ' 249 , c e u e ata nanc a s Report on Supplementary Information -F Independent Auditor Financial Data Schedule 251 .~ ~1 i 1 1 1 :__1 1 t t I. INTRODUCTORY SECTION 1 1 1 1 i -This page intentionally left blank - ' i 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Year Ended December 31, 2003 Name Official Title Mayor and Council ' Julienne Wyckoff Mayor Tamera Ericsen Councilmember Bruce Kelzenberg Councilmember Bruce Nawrocki Councilmember Robert A. Williams Councilmember Administration Walter Fehst Linda Magee City Manager Assistant to City Manager William Elrite City Clerk-Treasurer, Finance Director Larry Scott Liquor Operations Manager Jim Hoeft City Attorney Kevin Hansen Public Works Director, City Engineer Thomas Johnson Chief of Police Charles Thompson Chief of Fire Lauren McClanahan Superintendent of Public Works Keith Windschitl Recreation Services Director M. Rebecca Loader Librarian Robert Streeter Community Development Director 3 1 1 1 1 -This page intentionally left blank - 1 1 City of Columbia Heights Organizational Chart I Mayor: Julienne Wyckoff 1 POLICE (Administered by Mayor) Police Chief: Thomas Johnson Secretary II Police Captain Clerk-Typist II Sergeants (3) Corporals (3) Patrol Officers (16) Community Service Officers (2) Support Services Supervisor Secretary II-A (2.5) FIRE Fire Chief: Charles Thompson Secretary II (PT) Assistant Fire Chief FT Clerk Typist Firefighters (6) Volunteer Firefighters (30) Reserve Division (6) LIBRARY Councilmembers: Tammera Ericson Bruce Kelzenberg Bruce Nawrocki Robert Williams City Manager: Walter Fehst ADMINISTRATION Assistant to the City Manager / Human Resources Director Special Projects Coordinator Administrative Secretary Deputy City Clerk/Council Secretary' RECREATION Recreation Director: Keith Windschitl Senior Citizen Coordinator Program Coordinator (1) Head Custodian Recreation Clerk/Typist II Recreation Clerk/Typist II (PT) Custodian II (6 PT) Custodian I (1 PT) Commissions & Boards: Charter EDA HRA Police & Fire Civil Service Traffic Telecommunications Planning & Zoning Human Services Park & Recreation Library FINANCE Finance Director/City ClerkfTreasurer: William Elrite Secretary II (PT) Assistant Finance Director Accounting Coordinator Payroll/Accounting Clerk Utilities Accounting Clerk II Utilities Accounting Clerk I Accounting Clerk II (2 PT) Switchboard Operator/Receptionist Meter Reader (PT) Liquor Operations Manager Assistant Liquor Operations Manager (6) Store Supervisor (FT) Retail Clerk (27 PT) IS Director IS Technician Library Director: M. Rebecca Loader Adult Services Specialist Children's Librarian Clerk-Typist II (2) Library Supervisor (4 PT) Page (8 PT) Library Aide (PT) Library Clerk (PT) PUBLIC WORKS Public Works Director/City Engineer: Secretary II-A 1 Assistant City Engineer Engineering Technician IV (2) Engineering Technician III Public Works Superintendent Foreman (3) Maintenance III (1) Maintenance Worker (15) Supervisor-Vehicle Maintenance Maintenance III -Mechanic Maintenance III - Bodyman/Painter Administrative Assistant-Public Works COMMUNITY DEVELOPMENT Kevin Hansen Community Development Director: Bob Streetar Community Development Assistant Building Official Planner Community Development Secretary Secretary II-Permits/License (1 PT) Housing Assistant (PT -temporary) "Also serves in the capacity of Deputy City Clerk under the City Manager. 5 1 1 1 1 -This page intentionally left blank - fl 1 1 1 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www.ci.columbia-heights.mn.us June 25, 2003 To the Citizens of the City of Columbia Heights, Mayor, Councilmembers, and City Manager The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year ended December 31, 2003 is hereby submitted. The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The Comprehensive Annual Financial Report is presented in four sections: Introductory, Financial, Statistical, and Other Required Reports. The Introductory Section includes this transmittal letter, the City's organizational chart, a list of principal officials, and a reproduction of the Certificate of Achievement for the prior year. The Financial Section includes: 1) independent auditor's opinion; 2) management's discussion and analysis; 3) government wide and fund financial statements; 4) notes to the financial statements; 5) required supplemental information; 6) combining and individual fund statements and schedules; and, 7) the supplemental financial information. The Statistical Section includes tables and reports of various economic, social, financial and fiscal data designed to reflect trends and ratios. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the United States Office of Management and Budget Circular A-133 and a Minnesota Legal Compliance Audit. Information related to this single audit and compliance audit, including the Schedule of Expenditures of Federal Awards, is included in the Single Audit and Other Required Reports Section. 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. All City funds, departments, commissions and other organizations for which the City of Columbia Heights is financially accountable are presented within the Comprehensive Annual Financial Report. The City provides a full range of services to its citizens. These services include, but are not limited to, police and fire protection; sanitation services; the construction and maintenance of highways, streets, and infrastructure; library; recreational facilities; cultural events; and general administrative services. The Housing and Redevelopment Authority (HRA) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORTUNITY EMPLOYER 1 1 II -This page intentionally left blank - f] 1 1 and the Economic Develo ment Authori EDA are included in the re ortin enti as P t1' ~ ) p g ty component units of the City of Columbia Heights due to the fact that the governing boards are substantively the same and the City is in a relationship of financial benefit or burden with the authorities. ,~ In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34. This standard is the most comprehensive governmental accounting rule ever developed. This standard substantially changes the way state and local governments report their financial activity. The City of Columbia Heights first implemented these changes for the year 2002. A summary of the most significant changes is as follows: 1. Government-wide financial statements are prepared using full accrual accounting. 2. Basic fund financial statements present major funds instead of fund types. 3. Budgetary comparisons include original and amended budgets. 4. All infrastructure has been capitalized and all capital assets are depreciated. 5. A management discussion and analysis is included as required supplemental information. ECONOMIC CONDITION AND OUTLOOK The City of Columbia Heights, which is a suburb located north of the City of Minneapolis in Anoka County in east-central Minnesota, was originally incorporated as a village in 1898. In 1921, pursuant to the adoption of a home rule City Charter by the qualified voters of the City, a council-manager form of government, was instituted. The City covers an area of 3.52 square miles and has a population of 18,520. As an older, fully developed suburb of the City of Minneapolis, the management and the residents of the City of Columbia Heights are faced with the problems of an aging infrastructure and with increased crime statistics. The City Council and City Management are taking a proactive approach in dealing with these concerns. '~ The City Council has approved several projects related to the redevelopment of the downtown area of Columbia Heights. The projects include the Central Avenue Street, Utility and Streetscape Improvement Project; the Transit Hub; the Master Redevelopment Plan with the "Town Square Concept"; and the Transition Block Redevelopment Project consisting of 22 townhomes and 50 units of senior living facilities. These projects are greatly improving the downtown area of Columbia Heights and will be completed within the next year. The City has a planned Street Rehabilitation Program including water mains and storm sewer improvements. Zone 5 was completed in 2001, Zone 6A was completed in 2002, Zone 6B continued throughout 2003 and Zone 7 will start in 2004. The second phase of Storm Water Management Improvements continued during 2003. The Police Department continued to apply for, and receive, federal and state grants to assist in their community policing efforts. 9 1 ~~ The completion of Medtronic Corporation's expansion has resulted in continuing additional job opportunities in the City. Overall, unemployment in the City has increased slightly due to the economic downturn, but is still well below the national unemployment rate average. The City is actively promoting the expansion and creation of new businesses in the City by providing loans to qualified businesses through the HRA Business Revolving Loan Fund. MAJOR INITIATIVES ' For the Year The City had many mayor accomplishments during 2003. The following list is a summary of some of the major initiatives completed throughout the year. 1) The installation of CityView software. This software is a interdepartmental database system. CityView provides automation of important business processes, including special assessments, building permits and inspections, human resources, business licenses, and fire protection. It also allows the updating of property information by using the County database and integrates property data with GIS. ' 2) s Community policing continued to be a very important part of the police department mission. Programs such as neighborhood picnics, rental property owners meeting, McGruff House program, graffiti cleanup programs, and sector community policing continue to be important to our residents. 3) The completion of construction, of the Central Avenue Street, Utility and Streetscape Improvement Project. 4) The completion of Zone 6B Street Rehabilitation Project including major watermain !~ improvements and storm sewer improvements. 5) Additional storm water management improvements continued with the acquisition of two single-family homes for demolition and site grading in a flood prone area along Van ~' Buren Street. 6) The utility department completed a major cleaning and televising program to analyze problem areas within the sanitary sewer system in preparation for Zone 6B and Zone 7 street rehabilitation areas. 7) Contracted with a planning firm to develop the master plan for the redevelopment of the Huset Park. 8) Purchased additional property for the redevelopment of 40th and University. This results in an approximate site of over one acre available for development. 9) Purchased additional property for the redevelopment of 37th and Central. Combined, these purchases result in a highly visible, large commercial property along the City's central business route. 1 10 ~' 10 The Public Works De artment coin leted the Central Avenue Street Utili n p p ty a d Streetscape Improvement Project in 2003. This project provided a 4.7 million dollar investment along Central Avenue from 37th to 43rd, including the core downtown area. ll) In August of 2002, the City of Columbia Heights approved the site plan, and preliminary and final plats for Parkside Village, a 2.5 acre, 25-unit market-rate townhome project on 51St Avenue adjacent to Sullivan Lake and park. These units have an initial sale price of $260,000. The development saw mayor construction in 2003 and will be completed in 2004. -` For the Future The Master Redevelopment Plan for the downtown of Columbia Heights established a "Town Square Concept". The intent of the town square concept is to create a new mixed-use district on 40th Avenue west of Central Avenue. This, along with the Central Avenue Street, Utility and Streetscape Improvement Project, will continue to improve the downtown area of Columbia Heights. These plans combine new centralized civic uses, new public open space, commercial development, and a new downtown multi-family residential development into a revitalized center. These projects will be completed in 2004 and 2005. In addition, Zone 7 Street Rehabilitation is scheduled to start in 2004. This project will include water main and storm sewer improvements as well as the street rehabilitation. CityView software installation will continue throughout 2004, with the anticipated date of completion for the special assessments, building permits, building maintenance work orders, and fire module component in 2004. During 2004, the purchase order module will be developed for t a 2005 implementation. The redevelopment of the industrial park will continue throughout 2004. The planning firm of Hoisington Koegler and developer United Properties have created a redevelopment plan for the park. This plan will be presented to the Council during 2004 and will commence with the redevelopment shortly after. Financial Information Management of the City of Columbia Heights is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived; and 2) the valuation of costs and benefits requires estimates and judgments by management. In addition, the government maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund and certain special revenue 11 ntrol he funds are included m the annual appropriated budget. The level of budgetary co and t level at which expenditures cannot legally exceed the appropriated amount is at the fund level. ~ As demonstrated by the statements and schedules included in the financial section of this report, _. the City continues to meet its responsibility for sound financial management. Cash Maria eg merit Cash temporarily idle during the year was invested in demand deposits, certificates of deposit, obligations of the U.S. Treasury, repurchase agreements, and commercial paper. The average yield on investments for the year was 2.12%, which includes both interest revenue of 4.12% and the change (decline) in fair market value of (2.00)%. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. Risk Maria eg merit The City maintains commercial insurance coverage for liability, property, liquor liability, and workers' compensation. The City maintains an internal service fund for insurance. The insurance fund maintains a reserved balance to provide funds for catastrophic losses. This fund charges individual departments for allocation of premiums and for claims incurred. There were no significant claims pending at year-end for the City. ~' Independent Audit OTHER INFORMATION State Statutes require an annual audit by independent certified public accountants. The accounting firm of HLB Tautges Redpath, Ltd. was selected by the City. In addition to meeting the requirements set forth in State Statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133. The auditor's report on the basic financial statements and combining and individual fund statements and schedules is included in the Financial Section of this report. ~~ A warn c The Government Finance Officers' Association (GFOA) of the United States and Canada (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 12 I~ ended December 31 2002. The Certificate of Achievement is a resti ious national award that p g recognizes conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid fora eriod of on r nl li r n p e yea o y. We be eve ou curre t report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. Acknowledgments -~ 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 ~' 13 1 t 1 - This page intentionally left blank - t 14 '~ r~ Certificate of ~ Achievement for Excellence ~ in Financial ~ Reporting Presented to City of Columbia ~-Ieights, ~ • Minnesota For its Comprehensive Annual Financial Keport for the Fiscal Year Ended December 31, 2002 A Cerkificate 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. CE OFpjC ~~ F9 N ~O AIES N ~ r~Nnnn o President ZC~ COPPURAiION , o 7~~ $l~.L ~pJ' ~~~G CNICp6~ ~~ Executive Director 15 -This page intentionally left blank - 16 i t IL FINANCIAL SECTION 17 1 1 ~1 r 1 -This page intentionally left blank - t 1 t 18 ~ Tautges Redpath, Ltd. Certified Public Accountants and Consultants INDEPENDENT AUDITOR'S REPORT ~~ To the Honorable Mayor and Members of the City Council City of Columbia Heights, Minnesota We have audited the accompanying financial statements of the governmental activities, the ~- business type activities, each major fund, and the aggregate remaining fund information of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 2003 which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Columbia Heights, Minnesota's management. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Columbia Heights, Minnesota, as of December 31, 2003, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated March 31, 2004 on our consideration of the City of Columbia Heights, Minnesota's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with ~. this report in considering the results of our audit. White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 Hastings Office. 1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone: 651 480 4990 Fax: 651 426 5004 HLB Tautges Redpath, Ltd. is a member of ~ International. A world-wide organization of accounti~rms and business advisers. t 1 1 [J -This page intentionally left blank - t 1 20 The Management's Discussion and Analysis and the budgetary information as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was made for the purpose of forming opinions on the financial statements that collectively comprise the City of Columbia Heights, Minnesota's basic financial statements. The accompanying schedule of expenditures of federal awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations, along with the introductory section, combining and individual fund statements and schedules, supplementary financial information and statistical information as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of the City of Columbia Heights, Minnesota. The combining and individual fund statements and schedules, supplementary financial information and schedule of expenditures of federal awards has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects, in relation to the basic financial statements taken as a whole. The introductory section and statistical information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. March 31, 2004 HLB TAUTGES REDPATH, LTD. Certified Public Accountants ~~ J 1 21 t t 1 [J - This page intentionally left blank - 1 1 22 1 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Columbia Heights, we offer readers of the City of Columbia Heights' financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2003. 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 Hi~hli~hts ~~ The assets of the City of Columbia Heights exceeded its liabilities at the close of the most recent fiscal year by $48,804,104 (net assets). Of this amount, $28,024,894 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors in ~' accordance with the City's fund designations and fiscal policies. The City's total net assets increased by $429,231. As of the close of the current fiscal year, the City of Columbia Heights' governmental funds reported combined ending fund balances of $19,485,125. At the end of the current fiscal year the general fund balance of $3,423,232, included $14,727 reserved and $3,408,505 designated, for working capital. The City's total debt increased by $1,942,082 during the current fiscal year, from $4,363,206 to $6,305,288. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the City of Columbia Heights' basic financial statements. The City's basic financial statements comprise 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 of Columbia Heights' finances, in a manner similar to aprivate-sector business. ~ The statement of net assets presents information on all of the City of Columbia Heights' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Columbia Heights is improving or deteriorating. 23 Management's Discussion and Analysis The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Columbia Heights that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Columbia Heights include general government, public safety, public works, culture and recreation and community development. The business-type activities of the City of Columbia Heights include water, sanitary sewer, refuse, storm sewer and liquor operations. The government-wide financial statements are presented as statements 1 and 2 of this report. Fund Financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Columbia Heights, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Columbia Heights can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. For the current fiscal year ended December 31, 2003, the City of Columbia Heights has seven individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, Anoka County community development block grant fund, municipal state aid street fund, Sheffield tax increment financing redevelopment fund, capital improvements-general government buildings fund, capital equipment replacement- 24 Mana ement's Discussion and Anal sis g Y ~ general government fund, and capital improvements-PIR fund all of which are required to be presented as major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Columbia Heights adopts an annual appropriated budget for its general and some special revenue funds. A budgetary comparison statement has been provided for those funds to demonstrate compliance with this budget. The basic governmental fund fmancial statements are presented as statements 3 through 5 of this report. Proprietary funds. The City of Columbia Heights maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide fmancial statements. The City of Columbia Heights uses enterprise funds to account for its water, sewer, refuse, storm sewer, and liquor operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City- of Columbia Heights' various functions. The City of Columbia Heights uses internal service funds to account for its central garage, data processing, insurance, and compensated absences services. Because the central garage, insurance and compensated absences services ~~ predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. And also, because the data processing services predominately benefit the business-type functions, it has been included within the business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, sewer, refuse, storm sewer and liquor operations, all of which are considered to be major funds of the City of Columbia Heights. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Tndividual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund fmancial statements are presented as statements 6 through 8 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties ~~ outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Columbia Heights' own program. The accounting used for fiduciary funds is much like that used for 25 Management's Discussion and Analysis proprietary funds. r 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 are presented immediately following the required supplementary ,~ information on budgetary comparisons. Combining and individual fund statements and schedules are presented as statements 1 Z through 79 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 of Columbia Heights, assets exceeded liabilities by $48,804,104 at the close of the most recent fiscal year. ' net assets ($19,374,165 or 40 percent) The largest portion of the City of Columbia Heights reflects its investment in capital assets (e.g. land, buildings, improvements, furniture and fixtures, machinery and equipment and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City of Columbia Heights uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Columbia Heights' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. r N 26 ,~ ii Mana ement's Discussion and Anal sis g Y CITY OF COLUMBIA HEIGHTS' NET ASSETS Governmental Activities Business-Ty pe Activities Totals 2002 2003 2002 2003 2002 2003 Current and other assets $22,960,131 $23,783,849 $8,788,410 $8,357,248 $31,748,541 $32,141,097 Capital assets 17,663,595 17,509,493 7,161,533 8,293,539 24,825,128 25,803,032 1 Total assets $40,623,726 $41,293,342 $15,949,943 $16,650,787 $56,573,669 $57,944,129 Long term liabilities outstanding $2,806,854 $3,568,116 $1,530,064 $2,556,261 $4,336,918 $6,124,377 Other liabilities 2,850,030 2,069,313 1,011,848 946,335 3,861,878 3,015,648 Total liabilities $5,656,884 $5,637,429 $2,541,912 $3,502,596 $8,198,796 $9,140,025 Net assets Invested in capital assets net of related debt $16,958,595 $13,941,377 $5,473,625 $5,432,788 $22,432,220 $19,374,165 Restricted 1,203,523 1,114,870 175,783 290,175 1,379,306 1,405,045 Unrestricted 16,804,724 20,599,666 7,758,623 7,425,228 24,563,347 28,024,894 Total net assets $34,966,842 $35,655,913 $13,408,031 $13,148,191 $48,374,873 $48,804,104 ' A portion of the of the City of Columbia Heights net assets represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($28,024,894) may be used to meet the City's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Columbia Heights is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. r 27 Management s Discussion and Analysis Governmental activities Governmental activities increased the City of Columbia Heights' net assets by $689,071. Key ~~. elements of this increase are as follows: City of Columbia Heights' Changes in Net Assets Governmental Activities Business-Ty pe Activities Totals 2002 2003 2002 2003 2002 2003 . Revenues: ~ Program revenues: Charges for services $1,788,842 $1,979,230 $10,917,906 $11,183,361 $12,706,748 $13,162,591 Operating grants and contributions 1,218,659 946,246 53,978 107,775 1,272,637 1,054,021 Capital grants and contributions 4,510,229 895,109 130,339 - 4,640,568 895,109 General revenues: Property taxes 4,341,972 4,306,036 - - 4,341,972 4,306,036 Tax increment collections 798,446 781,439 - - 798,446 781,439 Grants and contributions not - - restricted to specific programs 3,275,417 2,712,408 - - 3,275,417 2,712,408 Unrestricted investment earnings 1,201,447 408,208 375,624 126,671 1,577,071 534,879 Gain (loss) on disposal of capital assets 6,454 103,524 - - 6,454 103,524 Total revenues 17,141,466 12,132,200 11,477,847 11,417,807 28,619,313 23,550,007 Expenses: General government 1,915,920 1,756,434 - - 1,915,920 1,756,434 Public safety 3,920,746 3,630,535 - - 3,920,746 3,630,535 Public works 1,659,152 2,646,859 - - 1,659,152 2,646,859 Culture and recreation 2,018,571 1,909,831 - - 2,018,571 1,909,831 Community development 1,679,107 1,239,030 - - 1,679,107 1,239,030 Interest on long-term debt 575,712 648,053 - - 575,712 648,053 Water - - 1,561,071 1,903,331 1,561,071 1,903,331 Sewer - - 1,058,721 1,231,594 1,058,721 1,231,594 Refuse Storm sewer - - - - 1,271,961 162,499 1,330,272 204,895 1,271,961 162,499 1,330,272 204,895 Liquor - - 6,343,775 6,619,942 6,343,775 6,619,942 ~ Total expenses 11,769,208 11,830,742 10,398,027 11,290,034 22,167,235 23,120,776 " Increase (decrease) in net assets before transfers 5,372,258 301,458 1,079,820 127,773 6,452,078 429,231 Transfers 634,236 387,613 (634,236) (387,613) - - Increase in net assets 6,006,494 689,071 445,584 (259,840) 6,452,078 429,231 Net assets -January 1 28,960,348 34,966,842 12,962,447 13,408,031 41,922,795 48,374,873 Net assets-December 3l $34,966,842 $35,655,913 $13,408,031 $13,148,191 $48,374,873 $48,804,104 r 28 1 1 1 1 A 1 f t i f 1 1 1 f M 1 1 1 Management's Discussion and Analysis Below are specific graphs providing comparisons of the governmental activities revenues and expenditures: Governmental Activities - 2003 Expenses Interest on long- term debt 6% Community General government 17% ~~~ Culture recreation Public safety 30% Public works 22 29 Management's Discussion and Analysis Business-Type Activities Business-type activities decreased net assets by $259,840. Below are graphs showing the business-type activities revenue and expense comparisons: 30 Mana ement's Discussion and Anal sis g Y Financial Analysis of the Government's Funds As noted earlier, the City of Columbia Heights uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City of Columbia Heights' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Columbia Heights' financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. ~' At the end of the current fiscal year, the City of Columbia Heights' governmental funds reported combined ending fund balances of $19,485,125. Approximately 95 percent of this total amount ($18,494,259) constitutes unreserved fund balance. The remainder of the fund balance + ($990,866) is reserved because it has already been committed 1) to provide for prepaid items ($18,102), 2) to provide for real estate held for resale ($253,413), and 3) for grant restricted program expenditures ($719,351). ~~ The general fund is the chief operating fund of the City of Columbia Heights. At the end of the current year, the fund balance decreased in total by $92,374 in 2003. The revenues exceeded the expenditures at year-end by $101,705. The City Council authorized a transfer of funds to the capital improvements general government buildings fund, thus reducing the fund balance. The Anoka County CDBG fund decreased in total by $3,752. The municipal state aid street fund increased by $580,806 due to transfers from the PIR fund for project financing. The Sheffield tax increment financing redevelopment fund increased by $26,100. The capital improvements general government buildings fund increased by $204,553 due predominately to investment income and transfers from other funds. The capital equipment replacement general government fund decreased by $10,864. The capital improvements PIR fund increased by $1,201,792 due to the receipt of project financing (bonds and MSA monies). The non major special revenue funds increased by $51,956 for 2003. The nonmajor debt service funds decreased by $345,980 due to the debt service payments exceeding the tax increment revenues. The nonmajor capital project funds decreased overall by $75,414 for 2003. 31 1 Management's Discussion and Analysis Proprietary funds. The City of Columbia Heights' proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net assets in the respective proprietary funds are water ($380,424), sewer $3,439,914, refuse $535,912, storm sewer $91,936 and liquor $3,007,885. The storm sewer and liquor funds had increases in net assets in 2003 of $33,535 and $136,532, respectively. The water, sewer and refuse funds had decreases in net assets of $464,016, $42,003 and $179,916, respectively. Budgetary Highlights General Fund Differences between the original budget and the final amended budget ($356,824) are the result of state aid cuts. During the year, revenues were less than budgetary estimates by $266,253 and ' expenditures were less than budgetary estimates by $540,041. Capital Asset and Debt Administration r Capital assets. The City of Columbia Heights' investment in capital assets for its governmental ;~ and business-type activities as of December 31, 2003, amounts to $25,803,032 (net of accumulated depreciation). This investment in capital assets includes land, buildings, improvements other than buildings, office furniture and fixtures, machinery and equipment, infrastructure and construction in progress. Major capital asset events during the current fiscal year included the following: • Construction was substantially completed on the Central Avenue project, the total cost was $5,036,782. • Zone 6, street rehabilitation was completed and closed in 2003, the total cost was $1,181,572. • Construction on Zone 7, street rehabilitation began in 2003, the construction in progress as of the close of the year had reached $59,286. 32 1 ~~ Mana ement's Discussion and Anal sis g Y ' l A City of Columbia Heights Capit ssets a (Net of Depreciation) di Beginning ng En Balance Additions Deletions Balance Primary Government Governmental activities: Land $3,082,686 $ - ($157,000) $2,925,686 Buildings and structures Improvements 10,153,637 2,977,396 44,898 14,425 - = 10,198,535 2,991,821 Office furniture and fixtures 253,452 54,054 307,506 Machinery and equipment 4,445,013 222,743 (117,811) 4,549,945 Infrastructure 9,203,263 6,186,184 - 15,389,447 ~~, Construction in progress 5,699,220 1,429,388 (6,677,753) 450,855 Total capital assets 35,814,667 7,951,692 (6,952,564) 36,813,795 Less: Accumulated depreciation: ~, Accumulated depreication (18,151,072) (1,263,866) 110,636 (19,304,302) Governmental activities capital assets -net 17,663,595 6,687,826 (6,841,928) 17,509,493 Business-type activities: Land Buildings and structures Improvements Office furniture and fixtures Machinery and equipment ~~ Construction in progress Total capital assets Less accumulated depreciation: Accumulated depreication Business-type activities capital assets -net Total capital assets -net 340,893 - - 340,893 660,745 - - 660,745 10,570,766 1,444,233 - 12,014,999 81,014 - - 81,014 1,037,999 - - 1,037,999 37,906 1,529,906 (1,444,233) 123,579 12,729,323 2,974,139 (1,444,233) 14,259,229 (5,567,792) (397,898) - (5,965,690) 7,161,531 2,576,241 (1,444,233) 8,293,539 $24,825,126 $9,264,067 ($8,286,161) $25,803,032 Additional information on the City of Columbia Heights' capital assets can be found in Note 4. Long-term debt. At the end of the current fiscal year, the City of Columbia Heights had total long-term debt outstanding of $6,305,288, a increase of $1,942,082 from 2002. $1,937,828 is for general obligation improvement debt supported in part by special assessments. An additional $1,630,288 of general obligation tax increment debt financed the City's economic development program, and $2,737,172 of general obligation utility revenue bonds financed utility improvements. In addition, there is long-term debt in the amount of $676,375 for compensated absences. 33 1 ~~~ Mana ement's Discussion and Anal sis g Y ' D b City of Columbi a Heights e Outstanding t General Obligation Improvement Bonds, General Obligation Tax Increment Bonds, Long-Term ;~ Notes and Compensated Absences Governme ntal Activities Business-Type Activities Totals 2002 2003 2002 2003 2002 2003 General Obligation Improvement Bonds $705,000 $1,937,828 $ - $ - $705,000 $1,937,828 General Obligation Tax Increment Bonds 2,008,206 1,630,288 - - 2,008,206 1,630,288 Revenue Bonds - - 1,650,000 2,737,171 1,650,000 2,737,171 Compensated absences 571,566 604,749 60,008 71,627 631,574 676,376 $3,284,772 $4,172,865 $1,710,008 $2,808,798 $4,994,780 $6,981,663 ,~ The City of Columbia Heights maintains an Al rating from Moody's. State statute limits the amount of eneral obli ation debt a Minnesota city may issue to 2% of g g total estimated market value. The current debt limitation for the City of Columbia Heights is $17,102,916. None of the City's outstanding debt is counted within the statutory limitation. Additional information on the City of Columbia Heights' long-term debt can be found in note 7. ti.. Economic Factors and Next Year's Budgets and Rates '~' The unemployment rate for the City of Columbia Heights is currently 5.0 percent, which is an '~ increase from a rate of 4.4 percent a year ago. This compares to the state's average unemployment rate of 5.0 percent and the national average rate of 6.0 percent. w Inflationary trends in the region compare favorably to national trends. All of these factors were considered in preparing the City of Columbia Heights' budget for the ~~ 2003 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 1 ' 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS December 31, 2003 Primary Government Governmental Business-Type Activities Activities Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectibles) Special assessments Taxes Interest Loans Due from other governmental units Due from other agencies Internal balances Prepayments Inventory - at cost Real estate held for resale Total current assets Noncurrent assets: Due from other governmental units Capital assets (net of accumulated depreciation): Land Buildings Improvements other than buildings Office furniture and fixtures Machinery and equipment Infrastructure Construction in process Total noncurrent assets Total assets Statement 1 , Page 1 of 2 Totals 2003 2002 $21,617,345 $5,136,210 $26,753,555 $26,449,112 242,516 924,467 1,166,983 975,704 1,230,714 - 1,230,714 1,186,193 242,917 - 242,917 122,776 170,109 53,049 223,158 273,928 6,545 - 6,545 10,433 301,413 7,034 308,447 850,402 25,150 - 25,150 - (610,510) 610,510 - - 28,955 62,710 91,665 31,290 50,382 1,384,900 1,435,282 1,257,886 478,313 - 478,313 390,736 23,783,849 8,178,880 31,962,729 31,548,460 - 178,368 178,368 200,081 2,925,686 340,893 3,266,579 3,423,579 1,362,891 211,258 1,574,149 1,676,911 1,043,194 7,384,431 8,427,625 7,345,101 95,456 - 95,456 74,080 2,019,256 233,378 2,252,634 2,452,744 9,612,155 - 9,612,155 4,115,587 450,855 123,579 574,434 5,737,126 17,509,493 8,471,907 25,981,400 25,025,209 41,293,342 16,650,787 57,944,129 56,573,669 1 t 0 r~ The accompanying notes are an integral part of these financial statements. 36 , CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS December 31, 2003 n Statement 1 Page 2 of 2 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 Public safety Culture and recreation Community development Unrestricted Total net assets Primary Government Governmental Business-Type Activities Activities Totals 2003 2002 $283,964 $441,995 $725,959 $2,131,874 204,674 34,309 238,983 123,059 181,123 - 181,123 209,887 495,700 167,260 662,960 457,909 23,586 - 23,586 28,017 222,747 46,490 269,237 221,216 52,770 3,744 56,514 29,524 14,701 1,742 16,443 2,530 514,789 250,795 765,584 657,918 1,994,054 946,335 2,940,389 3,861,934 590,048 69,885 659,933 631,574 3,053,327 2,486,376 5,539,703 3,705,288 3,643,375 2,556,261 6,199,636 4,336,862 5,637,429 3,502,596 9,140,025 8,198,796 13,941,377 5,432,788 19,374,165 23,438,666 633,596 290,175 923,771 175,783 476,608 - 476,608 - 4,666 - 4,666 - - - - 704,960 - - - 49,487 - - - 449,076 20,599,666 7,425,228 28,024,894 23,556,901 $35,655,913 $13,148,191 $48,804,104 $48,374,873 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, 2003 ' Charges For Expenses Services ' Functions/Programs Primary government: Government activities: ' General government $1,756,434 $724,331 Public safety 3,630,535 330,768 Public works 2,646,859 306,193 ' Culture and recreation 1,909,831 107,318 Community development 1,239,030 510,620 Interest on long-term debt 648,053 - , Total government activities 11,830,742 1,979,230 Business-type activities: ' Water 1,903,331 1,548,505 Sewer 1,231,594 1,240,882 Refuse 1,330,272 1,248,346 Storm sewer 204,895 184,712 ' Liquor 6,619,942 6,960,916 Total business-type activities 11,290,034 11,183,361 ' Total primary government $23,120,776 $13,162,591 The accompanying notes are an integral part of these financial statements. 3~ ' ' Statement 2 ' Program Revenues Net (Expense) Revenue and Changes in Net Assets Operating Capital Primary Government Grants and Grants and Governmental Business-Type Totals ' Contributions Contributions Activities Activities 2003 2002 t $ - $ - ($1,032,103) $ - ($1,032,103) ($1,318,249) 405,098 225,000 (2,669,669) _ (2,669,669) (3,242,453) 194,987 613,304 (1,532,375) (1,532,375) 2,714,696 41,492 - (1,761,021) - (1,761,021) (1,644,135) ' 304,669 56,805 (366,936) (648,053) = (366,936) (648,053) (185,625) (575,712) 946,246 895,109 (8,010,157) 0 (8,010,157) (4,251,478) 1 - - - (354,826) (354,826) (169,402) 1,865 - - 11,153 11,153 162,413 53,411 (28,515) (28,515) 30,801 ' = 52,499 = 32,316 32,316 140,815 - - - 340,974 340,974 539,569 107,775 0 0 1,102 1,102 704,196 ' $1,054,021 $895,109 ($8,010,157) $1,102 ($8,009,055) ($3,547,282) General revenues: Property taxes $4,306,036 $ - $4,306,036 $4,341,972 ' Tax increment collections 781,439 - 781,439 798,446 Grants and contributions not restricted to specific programs 2,712,408 - 2,712,408 3,275,417 ' Unrestricted investment earnings 408,208 126,671 534,879 1,577,071 Gain (loss) on disposal of capital assets 103,524 103,524 6,454 Transfers 387,613 (387,613) - - Total general revenues and transfers 8,699,228 (260,942) 8,438,286 9,999,360 ' Change in net assets 689,071 (259,840) 429,231 6,452,078 Net assets -beginning, as adjusted (Note 16) 34,966,842 13,408,031 48,374,873 41,922,795 Net assets -ending $35,655,913 $13,148,191 $48,804,104 $48,374,873 The accompanying notes are an integral part of these financial statements. ' 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS ' December 31, 2003 Anoka Municipal County State Aid General CDBG Street Fund , Assets Cash and investments $3,452,324 $ - $3,975 Receivables: ' Accounts 31,786 - - Special assessments - - - Taxes Interest 173,059 28,384 - - - - ' Loans - - - Due from other governmental units 61,466 - - Due from other agencies 25,154 - - Interfund receivable 59,852 - - ' Prepayments 14,727 - - Real estate held for resale - 224,900 - Total assets $3,846,752 $224,900 $3,975 ' Liabilities and Fund Balances Liabilities: Accounts payable $63,505 $ - $2,243 Accrued salaries and withholdings payable 178,996 - 108 ' Contracts payable -retained percentage - - 74,192 Due to other governmental units 98,159 - - Interfund payable - 28,069 72,330 , Deferred revenue 80,060 224,900 - Deposits 2,800 1,000 - Totalliabilities Fund balances: 423,520 253,969 148,873 , Reserved for: Prepayments 14,727 - - Real estate held for resale - - - ' Program expenditures - - - Unreserved reported in: General fund Special revenue funds 3,408,505 - - (29,069) - - ' Debt service funds - - - Capital projects funds - - (144,898) Total fund balances 3,423,232 (29,069) (144,898) Total liabilities and fund balances $3,846,752 $224,900 $3,975 ' The accompanying notes are an integral part of these financial statements. 40 , ' Statement 3 Capital Capital Sheffield Improvements Equipment Capital Other Intra Totals TIF General Gov't Replacement Improvements Governmental Activity Governmental Funds Redevelopment Buildings General Gov't PIR Fund Funds Eliminations 2003 2002 $4,074 $3,070,426 $4,507,959 $1,032,616 $7,995,902 $ _ $20,067,276 $19,294,180 208,449 240,235 108,908 - - - 1,230,714 - - 1,230,714 1,186,193 2,466 67,392 242,917 122,776 ' = _ = 103 27,029 39,947 1,950 = 66,326 163,739 204,375 6,545 6,545 10,433 - - - 6,748 217,410 - 285,624 811,881 - - - 25,154 - _ _ 98,137 2,244 = 84,543 244,776 647,716 - - - - 3,375 - 18,102 18,813 - - - 71,500 181,913 - 478,313 390,736 $6,643 $3,195,592 $4,547,906 $2,345,772 $8,831,855 $0 $23,003,395 $22,796,011 $ $ $4,929 $ - $203,378 $ $274,055 $1,656,823 _ _ 2,089 _ 2],254 202,447 103,279 - 14 - 103,937 2,980 - 181,123 209,887 397,541 495,700 142,298 ' _ _ _ = 471,061 = 163,178 734,638 1,174,716 1,224,380 48,197 1,577,537 1,534,926 - - - - 48,970 - 52,770 25,780 471,061 14 4,929 1,330,406 885,498 0 3,518,270 4,847,709 3,375 18,102 18,813 _ _ _ = 71,500 = 181,913 253,413 165,836 719,351 719,351 780,821 - 3,408,505 3,500,949 ' _ _ _ _ = 639,873 610,804 355,626 841,666 841,666 1,187,646 (464,418) 3,195,578 4,542,977 943,866 5,560,179 - 13,633,284 11,938,611 (464,418) 3,195,578 4,542,977 1,015,366 7,946,357 0 19,485,125 17,948,302 ' $6,643 $3,195,592 $4,547,906 $2,345,772 $8,831,855 $0 $23,003,395 $22,796,011 Fund balance reported above $19,485,125 $17,948,302 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds 17,385,332 17,663,595 ' Other long-term assets are not available to pay for current- period expenditures and, therefore, are deferred in the funds. 1,553,951 1,506,909 Internal service funds are used by management to charge the costs of garage, energy management, data processing, insurance and compensated absences to individual funds. With the exception of the data processing fund which is a business-type fund, the assets and liabl ities of the internal service funds are included in the governmental activities in the statement o f net assets. 1,022,368 754,856 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. (3,790,863) (2,906,820) Net assets of governmental activities $35,655,913 $34,966,842 The accompanying notes are an integra l 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, 2003 Revenues: Taxes Tax increment collections Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures 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: General government Public safety Public works Culture and recreation Community development Debt service: Principal retirement Interest and fiscal charges Issuance costs Miscellaneous Developer incentives Contractual services Total expenditures Revenues over (under) expenditures Other financing sources (uses): Bond proceeds Sale of land Recaptured IIUD monies Bond discount Transfers in Transfers out Reclassification of prior year costs Total other financing sources (uses) Net change in fund balance Fund balance -January 1 Anoka Municipal Sheffield County State Aid TIF General CDBG Street Fund Redevelopment $3,646,155 $ - $ - $ - _ _ _ 35,289 281,480 - - - 2,864,347 50,000 183,507 6,231 407,914 - - - 140,378 - - - ' 135,976 - - 473 (84,760) - - (227) ' 33,917 - - - 7,425,407 50,000 183,507 41,766 1,516,937 3,486,039 - - - 1,090,695 ' - 93,456 - 1,203,211 - - - 4,883 3,752 - 15,666 - 16,037 - - 5,900 - - - - - 26,527 - 1 1 7,323,702 3,752 119,983 15,666 101,705 46,248 63,524 26,100 , 480,052 - 483,683 - (674,131) (50,000) (123,888) - _ - 157,487 - (194,079) (50,000) 517,282 0 (92,374) (3,752) 580,806 26,100 3,515,606 (25,317) (725,704) (490,518) Fund balance -December 31 $3,423,232 ($29,069) ($144,898) ($464,418) The accomnanvine notes are an inteeral Hart of these financial statements. 42 1 t 1 1 1 Statement 4 Capital Capital Improvements Equipment Capital Other Totals General Gov't Replacement Improvements Governmental Governmental Funds Buildings General Gov't PIR Fund Funds 2003 2002 $ - $ - $ - $652,556 $4,298,711 $4,344,517 - - - 742,498 777,787 799,216 - - 564,351 - 564,351 597,380 - - - - 281,480 277,924 - 225,000 - 620,374 3,949,459 7,996,992 - - - 717,517 1,125,431 1,166,876 - - - - 140 378 84 346 123,909 183,129 8,942 300,211 (59,367) (87,740) (4,284) (123,267) - - 48,523 353,389 64,542 320,389 617,532 3,263,278 489 - - 146,375 - 3,979 - 100,507 - 10,522 13,382 - - 2,966 - 656,600 - - - 1,087,320 - 307,237 - - 54,677 1,103,065 - 45,166 - - - 10,330 489 424,547 1,126,777 64,053 (104,158) (509,245) - - 1,332,828 - - (5,998) 140,500 150,000 552,163 - (56,706) (501,906) - - 333,950 140,500 93,294 1,711,037 204,553 (10,864) 1,201,792 2,991,025 4,553,841 (186,426) $3,195,578 $4,542,977 $1,015,366 The accompanying notes are an integral 43 35,084 89,478 26,534 55,824 477,918 569,513 33,079 85,211 510,847 3,874,290 (611,012) 752,640 (359,645) 435,829 11,966,421 1,663,801 3,590,525 1,208,055 1,862,777 1,111,621 16,037 348,221 1,273,747 71,700 55,824 477,918 569,513 10,330 33,079 85,211 510,847 (`JLL,7 2SJ) - 1,332,828 267,699 267,699 (104,471) (104,471) - (5,998) 1,552,097 3,358,495 (1,473,751) (2,880,382) - 491,437 241,574 2,459,608 (369,438) 8,315,795 1,536,823 17,948,302 $7,946,357 $19,485,125 part of these financial statements. 964,429 237,018 327,771 16,796,469 1,876,996 3,829,178 1,162,996 1,897,690 1,478,520 20,778 124,648 5,296,201 26,610 257,425 716,515 530,985 30,237 104,258 66,885 17,419,922 (623,453) 6,412,549 (5,751,430) 445,254 1,106,373 482,920 17,465,382 $17,948,302 r--, I [] - This page intentionally left blank - ' fl 1 1 44 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA ' RECONCILIATION OF THE STATEMENT OF REVENUES, Statement 5 EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2003 2003 2002 Amounts reported for governmental activities in the statement of activities (Statement 4) are different because: 920 Net changes in fund balances -total governmental funds (Statement 4) $1,536,823 $482, Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 45,729 4,445,788 The effect of sales involving capital assets are to decrease net assets. (164,175) (6,000) Revenues in the statement of activities that do not provide current fmancial resources are not reported as revenues in the funds. 47,042 306,358 The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. (854,910) 716,515 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (29,133) (14,490) The net revenue of certain activities of internal service funds are reported with governmental activities. 107,695 75,403 Change in net assets of governmental activities (Statement 2) $689,071 $6,006,494 The accompanying notes are an integral part of these financial statements. ' 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2003 Business-Type Activities -Enterprise Funds Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectibles) Interest Due from other governmental units Interfund receivable Prepayments Inventory - at cost Total current assets Noncurrent assets: Due from other governmental units Capital assets: Land Buildings Improvements other than buildings Office furniture and fixtures Machinery and equipment Construction in process Total capital assets Less: accumulated depreciation Net capital assets Total noncurrent assets Total assets Liabilities: Current liabilities: Accounts payable Accrued salaries and withholdings payable Due to other 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 Water Sewer Refuse $5,807 $2,003,712 $357,894 351,176 245,266 278,412 5,193 24,327 4,060 - 5,169 - 668,026 958,414 - - 57,269 - 3,299 - - 1,033,501 3,294,157 640,366 - 178,368 - 45,223 36,586 - 447,305 45,201 6,000 6,315,282 4,576,886 11,566 25,259 40,964 - 206,972 418,383 97,124 - 405 - 7,040,041 5,118,425 114,690 (2,469,559) (2,816,337) (52,130) 4,570,482 2,302,088 62,560 4,570,482 2,480,456 62,560 5,603,983 5,774,613 702,926 6,462 12,498 104,454 4,669 2,179 - 95,801 - - 973,885 - - 30,242 493 - 3,744 - - 326 326 - 149,145 3,667 - 1,264,274 19,163 104,454 13,071 13,071 - 1,629,845 25,469 - 1,642,916 38,540 0 2,907,190 57,703 104,454 2,791,492 2,272,546 62,560 285,725 4,450 - (380,424) 3,439,914 535,912 $2,696,793 $5,716,910 $598,472 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 1 J Statement 6 Business-Type Activities -Enterprise Funds Internal Storm Total Enterprise Funds Service Total Proprietary Funds Sewer Liquor 2003 2002 Funds 2003 2002 $96,239 $2,046,599 $4,510,251 $5,415,866 $2,176,028 $6,686,279 $7,154,932 49,036 577 924,467 864,343 2,281 926,748 866,796 2,086 17,137 52,803 63,614 6,614 59,417 69,553 - 1,865 7,034 38,521 15,789 22,823 38,521 - - 1,626,440 1,302,079 - 1,626,440 1,302,079 - 5,441 62,710 - 10,853 73,563 12,477 - 1,381,601 1,384,900 1,191,527 50,382 1,435,282 1,257,886 147,361 3,453,220 8,568,605 8,875,950 2,261,947 10,830,552 10,702,244 - - 178,368 200,083 - 178,368 200,083 254,724 4,360 340,893 340,893 - 340,893 340,893 162,239 660,745 660,745 371,383 1,032,128 1,032,128 1,030,067 81,198 12,014,999 10,570,766 119,846 12,134,845 10,690,613 - 14,791 81,014 81,014 - 81,014 81,014 - 289,381 1,011,860 1,011,860 103,183 1,115,043 1,115,043 123,174 123,579 37,906 123,579 37,906 1,407,965 551,969 14,233,090 12,703,184 594,412 14,827,502 13,297,597 (104,863) (496,662) (5,939,551) (5,549,055) (470,251) (6,409,802) (5,976,247) 1,303,102 55,307 8,293,539 7,154,129 124,161 8,417,700 7,321,350 1,303,102 55,307 8,471,907 7,354,212 124,161 8,596,068 7,521,433 1,450,463 3,508,527 17,040,512 16,230,162 2,386,108 19,426,620 18,223,677 2 312,624 436,040 451,021 15,864 451,904 475,051 150 23,491 30,489 16,464 6,047 36,536 19,780 71,459 167,260 315,611 167,260 315,611 162,693 - 1,136,578 775,079 - 1,136,578 775,079 15,755 - 46,490 27,602 - 46,490 27,602 - 3,744 3,744 - 3,744 3,744 _ 918 1,570 1,653 14,873 16,443 2,530 97,983 - 250,795 180,000 - 250,795 180,000 276,583 408,492 2,072,966 1,771,174 36,784 2,109,750 1,799,397 1 36,842 62,984 54,934 596,949 659,933 631,574 831,062 - 2,486,376 1,470,000 - 2,486,376 1,470,000 831,062 36,842 2,549,360 1,524,934 596,949 3,146,309 2,101,574 1,107,645 445,334 4,622,326 3,296,108 633,733 5,256,059 3,900,971 250,882 55,308 5,432,788 5,466,223 124,162 5,556,950 5,633,444 1 290,175 175,783 290,175 284,822 91,936 3,007,885 6,695,223 7,292,048 1,628,213 8,323,436 8,404,440 $342,818 $3,063,193 12,418,186 12,934,054 $1,752,375 $14,170,561 $14,322,706 730,005 473,977 $13,148,191 $13,408,031 The accompanying notes are an integral part of th ese 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, 2003 Business-Type Activities -Enterprise Funds Water Sewer Refuse Operating revenues: Charges for services $71,586 $1,201,655 $1,246,660 Charges for sales 1,476,325 - - Total operating revenues 1,547,911 1,201,655 1,246,660 Operating expenses: Cost of sales, services and goods sold Operating expense Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Intergovernmental Miscellaneous revenues Interest and fiscal charges Miscellaneous expenses Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers in Transfers out Total transfers Change in net assets Total net assets -beginning, as previously restated Change in accounting principles Total net assets -beginning, as restated Total net assets -ending Change in net assets as reported above 1,663,387 1,080,682 1,290,395 177,604 13 8,043 11,169 1,840,991 1,218,725 1,301,564 (293,080) (17,070) (54,904) 23,805 111,527 18,613 (11,405) (53,435) (8,918) - 1,865 53,411 594 39,227 1,686 (48,625) (1,203) - ' (12,391) - - (48,022) 97,981 64,792 (341,102) 80,911 9,888 1,863,159 460,629 - (1,986,073) (583,543) (189,804) (122,914) (122,914) (189,804) (464 016) (42 003) (179 916) , , , 3,160,809 5,758,913 778,388 , 3,160,809 5,758,913 778,388 $2,696,793 $5,716,910 $598,472 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net assets of business-type activities S The notes to the financial statements are an integral part of this statement. 48 , Statement 7 Business-Type Activities -Enterprise Funds Total Enterprise Funds Internal Service Total Proprietary Funds Storm Sewer Liquor 2003 2002 Funds 2003 2002 $184,712 $ - $2,704,613 $2,689,670 $1,032,680 $3,737,293 $3,509,967 6,934,572 8,410,897 8,184,028 61,298 8,472,195 8,241,571 184,712 6,934,572 11,115,510 10,873,698 1,093,978 12,209,488 11,751,538 121,948 5,366,137 9,522,549 8,973,503 909,492 10,432,041 9,892,645 - 1,223,988 1,223,988 1,093,381 15,590 1,239,578 1,126,383 51,503 12,175 390,494 350,129 43,059 433,553 396,353 173,451 6,602,300 11,137,031 10,417,013 968,141 12,105,172 11,415,381 11,261 332,272 (21,521) 456,685 125,837 104,316 336,157 9,564 78,557 242,066 300,190 30,326 272,392 328,222 (4,583) (37,638) (115,979) 73,774 (14,529) (130,508) 80,662 52,499 - 107,775 184,317 - 107,775 184,317 - 26,344 67,851 44,208 2,589 70,440 47,230 (32,066) (81,894) (67,284) (81,894) (67,284) (3,140) (1,022) (16,553) (3,939) - (16,553) (3,939) 22,274 66,241 203,266 531,266 18,386 221,652 569,208 33,535 398,513 181,745 987,951 144,223 325,968 905,365 637,939 - 2,961,727 1,007,733 314,000 3,275,727 1,321,733 (637,939) (261,981) (3,659,340) (1,641,969) (94,500) (3,753,840) (1,982,852) 0 (261,981) (697,613) (634,236) 219,500 (478,113) (661,119) 515 868 715 353 723 363 (152 145) 244 246 33,535 136,532 , ) ( , , , , 309,283 2,926,661 12,934,054 12,669,126 1,388,652 14,322,706 14,223,482 (88,787) (145,022) 309,283 2,926,661 12,934,054 12,580,339 1,388,652 14,322,706 14,078,460 ' $342,818 $3,063,193 $12,418,186 $12,934,054 $1,752,375 $14,170,561 $14,322,706 ($515,868) $353,715 256,028 91,869 ($259,840) $445,584 The notes to the financial statements are an integral part of this statement. 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Cash flows from operating activities: Cash received from customers Cash received from interfund services provided Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related fmancing activities: Acquisition of capital assets Disposition of capital assets Proceeds of capital grants and contributions Proceeds from sale of bonds Principal payments -bonds Interest and fiscal charges Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents -January 1 Cash and cash equivalents -December 31 Business-Type Activities -Enterprise Funds Water Sewer Refuse $1,492,327 $901,873 $1,269,005 (1,297,919) (938,999) (1,393,273) (227,285) (191,551) (769) 594 41,092 55,097 (12,391) - - (44,674) (187,585) (69,940) 1,863,159 460,629 - (1,986,073) (583,543) (189,804) (122,914) (122,914) (189,804) (764,570) (424,023) - 1,011,008 - - (94,038) (3,568) - (32,803) (1,257) - 119,597 (428,848) 0 25,280 116,589 21,325 (11,405) (53,435) (8,918) 13,875 63,154 12,407 (34,116) (676,193) (247,337) 39,923 2,679,905 605,231 $5,807 $2,003,712 $357,894 The notes to the financial statements are an integral part of this statement. 50 Statement 8 Page 1 of 2 Business-Type Activities -Enterprise Funds Total Enterprise Funds Internal Service Total Proprietary Funds Storm Sewer Liquor 2003 2002 Funds 2003 2002 $186,868 $6,934,154 $10,784,227 $10,805,511 $ - $10,784,227 $10,805,511 1,108,837 1,108,837 915,570 (7,501) (5,924,334) (9,562,026) (8,650,541) (624,247) (10,186,273) (9,261,012) (48,244) (752,585) 26,344 (1,220,434) 123,127 (1,133,399) 98,186 (284,839) 2,589 (1,505,273) 125,716 (1,409,405) 101,208 (3,140) (1,022) (16,553) (3,939) (16,553) (3,939) 127,983 282,557 108,341 1,115,818 202,340 310,681 1,147,933 637,939 - 2,961,727 1,007,733 314,000 3,275,727 1,321,733 (637,939) (261,981) (3,659,340) (1,641,969) (94,500) (3,753,840) (1,982,852) 0 (261,981) (697,613) (634,236) 219,500 (478,113) (661,119) (341,312) (1,529,905) (543,781) (1,529,905) (543,781) = 21,376 _ 21,376 52,499 - 52,499 130,339 - 52,499 130,339 256,163 1,267,171 - 1,267,171 - (82,394) = (180,000) (175,000) = (180,000) (175,000) (28,946) - (63,006) (69,812) - (63,006) (69,812) (143,990) 0 (453,241) (636,878) 0 (453,241) (636,878) 9,153 80,530 252,877 314,871 29,651 282,528 359,472 (4,583) (37,638) (115,979) 73,774 (14,529) (130,508) 80,662 4,570 42,892 136,898 388,645 15,122 152,020 440,134 (11 437) 468 63 (905 615) 233 349 436 962 (468 653) 290 070 , , , , , , , 107,676 1,983,131 5,415,866 5,182,517 1,739,066 7,154,932 6,864,862 $96,239 $2,046,599 $4,510,251 $5,415,866 $2,176,028 $6,686,279 $7,154,932 The notes to the financial statements are an integral part of this statement. 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2003 Business-Type Activities -Enterprise Funds Water Sewer Refuse Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in interfund receivables (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase(decrease)in accrued salaries and withholdings payable Increase (decrease) in contracts payable-retained percentage Increase (decrease) in due to other governmental units Increase (decrease)in interfund payables Increase (decrease) in deposits Increase (decrease) in compensated absences payable Total adjustments Net cash flows from operating activities ($293,080) ($17,070) ($54,904) 594 41,092 55,097 (12,391) - - 177,604 138,043 11,169 (67,393) 18,682 1,963 1,160 16,546 20,382 10,649 (335,010) - - (57,269) - (435) - - 2,760 7,735 (103,647) 1,625 (555) - (161,198) - - 295,210 - - 221 221 - 248,406 (170,515) (15,036) ($44,674) ($187,585) ($69,940) The notes to the financial statements are an integral part of this statement. 52 Statement 8 Page 2 of 2 Business-Type Activities -Enterprise Funds Total Enterprise Funds Internal Service Total Proprietary Funds Storm Sewer Liquor 2003 2002 Funds 2003 2002 $11,261 $332,272 ($21,521) $456,685 $125,837 $104,316 $336,157 - 26,344 123,127 98,186 $2,589 125,716 101,208 (3,140) (1,022) (16,553) (3,939) - (16,553) (3,939) 51,503 12,175 390,494 350,129 43,059 433,553 396,353 (12,799) (577) (60,124) 13,263 172 (59,952) 13,441 14,955 159 53,202 9,731 (15,789) 37,413 9,731 - - (324,361) (91,181) - (324,361) (91,181) (5,441) (62,710) 1,624 (61,086) 71,799 - (192,938) (193,373) (284,502) 15,977 (177,396) (294,751) (167) 78,338 (14,981) 216,498 (8,166) (23,147) 218,173 81 12,875 14,026 (51,645) 2,732 16,758 (13,949) - 12 847 (148,351) 92,105 = (148,351) 92,105 66,289 = 361,499 253,901 361,499 253,901 - 7,525 7,967 56,587 34,305 42,272 58,885 116,722 (49,715) 129,862 659,133 76,503 206,365 811,776 $127,983 $282,557 $108,341 $1,115,818 $202,340 $310,681 $1,147,933 The notes to the financial statements are an integral part of this statement. ' S3 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS December 31, 2003 Statement 9 Assets: Cash and investments Receivables: Accounts Loans Total assets Liabilities: Accounts payable Due to other governmental units Interfund payable Deposits Other liabilities Total liabilities Net assets Agency Fund 2003 2002 $4,068 $36,854 822 - 31,680 - 36,570 36,854 4,579 21,136 900 9,777 25,150 4,350 - 4,350 1,591 1,591 36,570 36,854 $ $ - - The notes to the financial statements are an integral part of this statement. 54 , t CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Columbia Heights was incorporated in 1898. The City is governed by a Council composed of an elected mayor and four council members. The Council exercises legislative authority and determines all matters of policy. The Manager, who is appointed by the Council, is responsible for the proper administration of all affairs relating to the City. '~ The financial statements of the City of Columbia Heights have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant policies. A. FINANCIAL REPORTING ENTITY The component units discussed below are included in the City's reporting entity because of the significance of their operational or financial relationships with the City. The City of Columbia Heights has two component units -the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). The HRA and the EDA are considered component units because the governing boards are substantively the same as that of the City and because the City is in a relationship of financial benefit or burden with each of the entities. The financial position and results of operations of the HRA and the EDA component units are presented using the blended method. Blended component units, although legally separate entities, are, in substance, part of the City's operations and as such are reported as Special Revenue Funds and Capital Project Funds. The component units include Governmental Funds using the modified accrual basis of accounting. Separate financial statements for the HRA and EDA are not prepared. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental ' revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. 55 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 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 and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: ' s primary operating fund. It accounts for all financial resources of The general fund is the government the general government, except those required to be accounted for in another fund. The Anoka County CDBG fund was established to account for the revenues and expenditures associated with federal community development block grants and HOME funds. The municipal state aid street fund is maintained according to State Statue to account for maintenance and construction of streets of municipal state aid systems. The Sheffield tax increment financing redevelopment fund was established to separate tax increment collections funding the redevelopment of the area of the City identified as Sheffield neighborhood. fl 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 The capital improvements -general government buildings fund was established to account for improvements to municipal buildings including the library, municipal garage and city hall. The capital equipment replacement -general government fund was established to account for the replacement of capital assets as needed. The capital improvement - PIR fund was established to account for projects that will be fully assessed to the affected properties. The government reports the following major proprietary funds: i t id t i ith t d d f er serv ces o area res en s. expenses assoc ate w wa or revenue an The water fund accounts 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. l ith t t di d i t d f d h . orm wa er sposa or revenues an expenses assoc a e w s accounts e storm sewer fun T The liquor fund accounts for revenues and expenses associated with the operation of three off-sale liquor stores. Additionally, the government reports the following fund types: Internal service funds account for central garage, data processing, insurance, and compensated absences services provided to other departments of the government on a cost reimbursement basis. Agency -The permit surcharge agency fund is used to account for SAC charges and surcharges collected for and remitted to the State of Minnesota. The escrow agency fund accounts for payroll related fees collected for other government agencies. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary-fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City of Columbia Heights. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. 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, ' S7 CITY OF COLUMBIA HEIGHTS, MINNESOTA , NOTES TO FINANCIAL STATEMENTS December 31, 2003 including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water, sewer, refuse, storm sewer and liquor operations enterprise funds and of the internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. The City does not use encumbrance accounting. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. The City Council annually adopts budgets prior to January 1 for the General and certain Special Revenue Funds. The budgets are prepared by fund, function, and activity. The budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at the end of the budget year to the extent that they have not been expended. Total expenditures appropriated in the budget resolution may not legally exceed the estimated revenues available from various sources. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. Budget revisions at the fund level are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The legal level of budgetary control is therefore at the fund level. The City does not use encumbrance accounting. ' u 1 L 58 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 CASH AND INVESTMENTS E . 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. i~ The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on the government-wide financial statements. F. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as "interfund receivables/payables." All short-term interfund receivables and payables at December 31 are planned to be eliminated in the subsequent year. Long-term interfund loans are classified as "interfund loan receivable/payable." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Property taxes and special assessments have been reported net of estimated uncollectible accounts. (See Note 1G and H) Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. G. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the ' County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. r 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because they are not available ~, to finance current expenditures. 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. 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 fmance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred revenues. 1 60 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 I INVENTORIES . GOVERNMENTAL FUNDS The original cost of materials and supplies has been recorded as expenditures at the time of purchase. These funds do not maintain material amounts of inventories. Real estate held for resale is valued at the ~ lower of cost or market. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first- out (FIFO) method. J. 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 fmancial statements. K. CAPITAL ASSETS _ Capital assets, which include land, buildings, improvements, office furniture and fixtures, machinery and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 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, 2003, no interest was capitalized in connection with construction in progress. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA , NOTES TO FINANCIAL STATEMENTS December 31, 2003 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 and structures 20 - 50 years Machinery and equipment 3 - 10 years Furniture and fixtures 5 - 10 years Other park improvements 20 - 50 years Streets 20-50 years Distribution and collection systems 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. LONGTERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund fmancial 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. 1 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 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 fmancial resources. O. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. P. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. Q. COMPARATIVE DATA/RECLASSIFICATIONS Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of the changes in the City's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. R. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net assets -governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this ($3,790,863) difference are as follows: Bonds payable ($3,568,116) Accrued interest payable (222,747) Net adjustment to reduce fund balance -total governmental funds to arrive at net assets of governmental activities ($3,790,863) 63 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 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 $45,729 difference are as follows: Capital outlay $1,273,938 Depreciation expense (1,228,209) Net adjustment to increase net changes in fund balance - total governmental funds to arrive at changes in net ' assets of governmental activities. $45,729 Another element of that reconciliation states, "Revenues on the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds." The details of this $47,402 difference are as follows: General property taxes deferred revenue: At December 31, 2002 At December 31, 2003 Tax increment taxes deferred revenue: At December 31, 2002 At December 31, 2003 Special assessments deferred revenue: At December 31, 2002 At December 31, 2003 Loans receivable -deferred revenue: At December 31, 2002 At December 31, 2003 Real estate held for resale -deferred revenue: At December 31, 2002 At December 31, 2003 Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes in net assets of governmental activities. ($77,137) 84,462 (10,012) 13,664 (1,184,427) 1,224,380 (10,433) 6,545 (224,900) 224,900 $47,042 L 64 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the long-term debt consumes the current fmancial resources of governmental funds." Neither transaction, however, has any effect on net assets. The details of this ($854,910) difference are as follows: Debt issued ($1,332,828) Principal repayments: General obligation debt -tax increment 377,918 General obligation debt -improvement 100,000 Net adjustment to increase net changes in fund ~~ balances -total governmental funds to arrive at changes in net assets of governmental activities. ($854,910) 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 ~t The Ciry maintains a cash and investment pool that is available for use by all funds of the City. Each fund type's portion of this pool is displayed on the combined balance sheet as "Total Cash and Investments." An indication of the level of risk assumed by the City at year-end is categorized as follows for the Ciry's cash and investments. A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: (1) United States government treasury bills, treasury notes, treasury bonds; (2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; (3) General obligation securities of any state or local government with taxing powers which is rates "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; (4) Unrated general obligation securities of a local government with taxing powers maybe pledged as collateral against funds deposited by that same local government entity; 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 (5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and (6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation. Balances at December 31, 2003 are as follows: Bank Carrying Balances Amount 1) Insured or collateralized by securities held by the City or its agent in the City's name. $1,650,778 $1,564,883 2) Collateralized with securities held by the pledging institution trust department m the City's name. - - 3) Uncollateralized or collateralized with securities not in the City's name. - - ' Total $1,650,778 $1,564,883 B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) Obligations of the State of Minnesota or any of its municipalities as follows: (1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service. (2) any security which is a revenue obligation of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; and (3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating agency. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest , quality, and maturing in 270 days or less. ~ f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. r 66 w CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 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. Investment balances at December 31, 2003 are as follows: Carrying Custodial Credit Risk Category Amount At 1 2 3 Fair Value U.S. government securities (including securities insured ~r by the U. S. Government) $20,186,998 $ - $ - $20,186,998 Money market fund 4,999,656 Total investments 25,186,654 ' Deposits 1,564,883 Cash on hand 6,086 Less fidicuiary fund cash (4,068) Total cash and investments $26,753,555 Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2003 are as follows: Major Funds Sheffield Capital TIF Improvement Nonmajor General Redevelopment PIR Fund Sewer Funds Total Special assessments receivable $ - $ - $1,087,049 $ - $ - $1,087,049 Delinquent property taxes 26,687 - - = 1,468 28,155 Delinquent tax increment 771 3,783 4,554 Due from other governmental units - - - 155,785 - 155,785 ~~ Total $26,687 $771 $1,087,049 $155,785 $5,251 $1,275,543 As of January 1, 1996, the Metropolitan Council (MCES) assumed ownership of an existing interceptor pursuant to an agreement with the City of Hilltop regarding usage of interceptors owned and maintained by the City of Columbia Heights. The MCES acquired the interceptor at a cost of $330,414. This amount is being amortized through current value payments from MCES over a 15-year period with interest at 4%. As of December 31, 2003, a balance of $178,368 remained to be collected over the next seven years. This receivable is presented as due from other governmental units in the Sewer Utility Fund. 67 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Delinquent property taxes receivable (general fund) Delinquent property taxes receivable (nonmajor funds) Delinquent tax increment (nonmajor funds) Delinquent special assessments (capital improvements -PIR fund) Special assessments not yet due (capital improvements -PIR fund) Loans receivable (nonmajor funds) Grant drawdowns prior to meeting all eligibility requirements (nonmajor funds) Rental fees received but unearned (nonmajor funds) Real estate held from resale -unearned (Anoka County CDBG fund) Total deferred/unearned revenue for governmental funds Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2003, as previously reported is as follows: Governmental activities: Capital assets -not depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets -being depreciated: Buildings and structures Improvements Office furniture and fixtures Machinery and equipment Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings and structures Improvements Office furniture and fixtures Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets being depreciated Governmental activities capital assets -net Beginning Ending Balance Additions Deletions Balance $3,082,686 $ - ($157,000) $2,925,686 5,699,220 1,429,388 (6,677,753) 450,855 8,781,906 1,429,388 (6,834,753) 3,376,541 10,153,637 44,898 - 10,198,535 2,977,396 14,425 - 2,991,821 253,452 54,054 - 307,506 4,445,013 222,743 (117,811) 4,549,945 9,203,263 6,186,184 - 15,389,447 27,032,761 6,522,304 (117,811) 33,437,254 8,714,153 121,491 - 8,835,644 1,881,250 67,377 - 1,948,627 179,372 32,678 - 212,050 2,288,621 352,704 (110,636) 2,530,689 5,087,676 689,616 - 5,777,292 18,151,072 1,263,866 (110,636) 19,304,302 8,881,689 5,258,438 (7,175) 14,132,952 17,663,595 6,687,826 (6,841,928) 17,509,493 6~ Unavailable Unearned $80,060 $ - 4,402 - 13,665 - 28,642 - 1,195,738 - 6,545 - - 12,616 - 10,969 224,900 - $1,553,952 $23,585 ' t u t CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Depreciation expense charged to functions/programs of the primary government -governmental activities are as follows: Governmental activities: General government Public safety Public works Culture and recreation Community development Capital assets held by the City's internal service fund (Central Garage) is charged to various functions based on their usage of the assets Total governmental deprecation expense Business-type activities: Business-type activities: Capital assets -not depreciated: Land Construction in progress Total capital assets not being depreciated Capital assets -being depreciated: Buildings and structures Improvements Office furniture and fixtures Machinery and equipment Total capital assets being depreciated Less accumulated depreciation for: Buildings and structures Improvements Office furniture and fixtures Machinery and equipment Total accumulated depreciation Total capital assets being depreciated Business-type activities capital assets -net Total capital assets -net Beginning Balance $68,309 124,304 908,035 81,757 45,804 35,657 $1,263,866 Ending Additions Deletions Balance $340,893 $ - $ - $340,893 37,906 1,529,906 (1,444,233) 123,579 378,799 1,529,906 (1,444,233) 464,472 660,745 - - 660,745 10,570,766 1,444,233 - 12,014,999 81,014 - - 81,014 1,037,999 - - 1,037,999 12,350,524 1,444,233 0 13,794,757 423,316 26,171 - 449,487 4,321,812 308,756 - 4,630,568 81,014 - - 81,014 741,652 62,969 - 804,621 5,567,794 397,896 0 5,965,690 6,782,730 1,046,337 0 7,829,067 7,161,529 2,576,243 (1,444,233) 8,293,539 $24,825,124 $9,264,069 ($8,286,161) $25,803,032 69 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Depreciation expense was charged to functions/programs of the primary government -business-type activities are as follows: Business-type activities: Water $177,604 Sewer 138,043 Refuse 11,169 Storm sewer 51,503 Liquor 12,175 Data processing 7,402 Total business-type depreciation expense $397,896 Note 5 INTERFUND RECEIVABLES, PAYABLES .AND TRANSFERS Individual fund interfund receivable and payable balances at December 31, 2003 are as follows: Fund Receivable Payable General Fund $59,852 $ - EDA: Anoka County CDBG - 28,069 Municipal state aid - 72,330 Sheffield TIF - 471,061 PIR Fund 2,244 - Capital improvement general 98,137 - Water 668,026 973,885 Sewer 958,414 - Storm Sewer - 162,693 Nonmaj or Funds 84,543 163,178 Total $1,871,216 $1,871,216 70 t 1 1 1 1 1 1 1 M 1 1 1 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Interfund transfers: Transfers out: Major funds: Govemmentat funds: General Anoka County CDBG Municipal State Aid Street Fund Sheffield TIF Redeveiopment Capital Equipment Replacement Gen. Gov4 Capital Improvements PIR Business-type Funds: Water Sewer Refuse Storm sewer Liquor Nonmajor governmental funds Internal service funds Total Transfers !n Major Funds Govemmental Business-Type Nonmajor State Aid Capital Capital Eq. Capital Nonmajor Sheet Improvement Replacement Improvement Storm Gov't Internal General Fund Gen. Gov. Gen. PIR Water Sewer Sewer Funds Service Total $ - S - $80,000 $50,000 $192,074 S - $ - $ - 5302,057 550,000 $674,131 - - - - - _ - 50,000 - 50,000 - 25,390 - - 98,498 - - - - - !23,888 - - - - - _ - - 56,706 - 56,706 - 458,293 - - - - - - 43,613 - 501,906 77,914 - - - - 1,863,159 - - - 45,000 1,986,073 77,914 - - - - - 460,629 - - 45,000 583,543 144,804 - - - - - - - - 45,000 189,804 637,939 - - 637,939 57,981 - - 100,000 - - - - 59,000 45,000 261,981 121,439 - - - 261,591 - - - 1,040,721 50,000 1,473,751 60,500 34,000 94,500 S48Q,052 5483,683 $140,500 S150,000 $552,163 $1,863,159 $460,629 $637,939 $1,552,097 $314,000 $6,634,222 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Interfund Interfund Receivables Payables Major Funds: General Fund $59,852 $ - Special Revenue Funds: EDA: Anoka County CDBG Municipal State Aid Capital Projects Funds: Sheffield TIF PIR Fund Capital Improvements -general Enterprise Funds: Water Utility Water Construction Capital Equipment Replacement-Water Water Debt Service Fund Storm Sewer Utility Sewer Construction Storm Sewer Debt Service Capital Equipment Replacement-Sewer Nonmajor Funds: Special Revenue Funds: Cable TV Twenty-First Century Grant Juvenile Justice Grant Debt Service Funds: Tax Increment Bonds MURP G.O. Improvement Bonds of 2003A Capital Projects Funds: Capital Improvement Capital Equipment Replacement-Cable TV TIF District #2 Scatter Site Housing TIF - 28,069 - 72,330 - 471,061 2,244 - 98,137 - - 529,586 - 444,299 354,270 - 313,756 - - 79,865 795,721 - - 82,828 162,693 - - 39,527 - 28,582 - 3,204 45,015 - - 41,388 - 3,626 - 25,807 39,528 - - 2,243 - 18,801 $1,871,216 $1,871,216 72 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 From To Amount Purpose General Fund PIR Fund $82,078 Project Closure General Fund PIR Fund 109,996 Project Closure General Fund Local Law Enforcement Block Grant 1,402 Local match General Fund Juvenile Accountability Block Grant 655 Local match General Fund Capital Improvement Parks 50,000 General improvements: parks General Fund Capital Improvement Buildings 80,000 General improvements: buildings General Fund Capital Improvement Replacement 50,000 Replacement fixed assets General Fund Data Processing 50,000 Fund data processing services General Fund Community Development 250,000 Fund community development Community Development General Fund 8,113 Labor Allocation Community Development General Fund 8,113 Labor Allocation State Aid Maintenance State Aid Constmction Fund 25,390 Project closure State Aid Maintenance PIR Fund 13,498 Project Closure State Aid Maintenance PIR Fund 85,000 Project Closure Cable Television General Fund 59,330 Labor Allocation Cable Television Data Processing 50,000 Fund data processing services Anoka County CDBG Capital Improvement Development 50,000 Reclassify CDBG expenditure Parkview Villa North General Fund 11,454 Labor Allocation Economic Development Authority General Fund 11,454 Labor Allocation Infrastructure Fund PIR Fund 118,290 Project Closure Infrastructure Fund PIR Fund 143,301 Project Closure Parkview Villa South General Fund 8,590 Labor Allocation Library General Fund 14,071 Labor Allocation COPS More 96 General Fund 3 ] 4 Grant closed Economic Development Authority Community Development 111,648 Fund housing & redevelopment authority Tax Increment Bonds Bonds 920,750 Debt service PIR Fund Bonds 43,613 Debt service PIR Fund State Aid Construction Fund 458,293 Project closure Capital Improvement Development Rental Housing Fund 8,323 Lass on sale of 325 Summit Capital Equipment Replacement-General Police/Fire Contingency Fund 56,706 Adjust previous transfer for payable Water Utility Capital Improvement Replacement 25,000 Replacement fixed assets Water Utility General Fund 77,914 Labor Allocation Water Utility Data Processing 45,000 Fund data processing services Water Utility Water Fund Debt Service 74,641 Debt service Sewer Utility Capital Improvement Replacement 30,000 Replacement fixed assets Sewer Utility General Fund 77,914 Labor Allocation Sewer Utility Data Processing 45,000 Fund data processing services Sewer Utility Sewer Fund Debt Service 5,000 Debt service Refuse Utility General Fund 72,402 Labor Allocation Refuse Utility Data Processing 45,000 Fund data processing services Refuse Utility-Recycling General Fund 72,402 Labor Allocation Storm Sewer Utility Capital Improvement Replacement 5,800 Replacement fixed assets Storm Sewer Utility Storm Sewer Fund Debt Service 125,000 Debt service Liquor General Fund 57,981 Labor Allocation Liquor Capita] Improvement Replacement 100,000 Replacement fixed assets Liquor DARE 9,000 Fund DARE program Liquor Infrastructure 50,000 Fund infrastructure replacement Liquor Data Processing 45,000 Fund data processing services Water Construction Fund Water Utility Fund 764,571 Project closure Sewer Construction Fund Sewer Utility Fund 425,629 Project closure Storm Sewer Construction Fund Storm Sewer Utility 254,032 Project closure Water Fund Debt Service Water Construction Fund 998,947 Proceeds from bonds Storm Sewer Debt Service Storm Sewer Construction Fund 253,107 Proceeds from bonds Central Garage Capital Improvement Buildings 60,500 General improvements: buildings Central Garage Capital Improvement Replacement 4,000 General improvements: buildings . Central Garage Data Processing 30,000 Fund data processing services ~ Total transfers $6,634,222 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Note 6 PROJECT REIMBURSEMENTS The reclassification of prior year's costs includes payments for prior year's expenditures for project costs. In the year of a project's completion, resources are received by the construction fund as reimbursement from the governmental fund acquiring the project. Note 7 OPERATING LEASES A. LEASE EXPENSE The City has leased premises for a liquor store (Top Valu) under afive-year lease agreement that originally expired in 1989. This lease has been renewed through December 31, 2004. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 2003 amounted to $130,386. The City also has 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 increasing minimum payments to $4,597 per month. The City is also required to pay all utilities and apro-rata share of real estate taxes. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 2003 amounted to $76,686. Future minimum rental payments are as follows: Year Top Value Top Value II 2004 $88,785 $55,165 2005 - 55,165 2006 - 55,165 2007 - 55,165 2008 - 9,194 Total $88,785 $229,854 74 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS ~` December 31, 2003 B. LEASE REVENUE The City receives revenue from agreements for the lease of space in Parkview Villa North and for antennas placed on the water towers and Parkview Villa. For accounting purposes, the leases are considered operating leases. Lease revenue for the year ended December 31, 2003, totaled $30,422. Terms of each lease are as follows: Location Lessee 2003 Adjustment Expiration Ivanhoe Place Sprint Spectrum $14,631 Greater of CPI or 5% 08/19/06 ~` 40th Ave NE American Portable Telecom 15,791 Greater of CPI or 4% 12/04/06 Total $30,422 Note 8 LONG-TERM DEBT General Obligation Bonds -The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital facility additions. General Obligation Bonds have been issued to refund General Obligation Tax Increment Bonds. General Obligation Bonds are direct obligations and are backed by the full faith and credit of the City. General Obligation Bonds currently outstanding are segregated between the amounts to be repaid from governmental activities and amount to be repaid from business-type activities and are as follows: Original Interest Issue Final Balance Issue Rate Date Maturity End of Year General Obligation: Governmental activities: Tax increment bonds: Capital Appreciation Bonds of 1990 $2,399,721 6.90-7.15% 8/23/1990 9/1/2009 $1,630,288 Improvement bonds: Improvement Bonds 1999A 860,000 3.45-4.30% 5/1/1999 2/1/2010 605,000 Improvement Bonds 2003A 1,332,829 1.10-4.00% 6/1/2003 2/1/20]8 1,332,828 Business-type activities: Revenue bonds: Utility revenue bonds 1999B 1,935,000 3.45-4.30% 5/1/1999 2/1/2010 1,470,000 Utility revenue bonds 2003A 1,267,171 1.10-4.00% 6/1/2003 2/1/2018 1,267,171 ' Total genera] obligation bonds outstanding $6,305,287 75 Cl CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 ANNUAL DEBT SERVICE REQUIREMENTS /~ As of December 31, 2003, th e annual requirements to maturity for general obligation b onds are as follows: Fiscal Year Ending Governmental Activities Business-Ty pe Activities December 31 Principal Interest Principal Interest 2004 $514,789 $637,328 $250,795 $99,256 2005 496,603 649,610 265,669 84,930 2006 483,095 671,187 287,727 75,967 2007 462,818 686,112 297,727 66,039 2008 439,211 701,567 310,164 55,221 2009 291,526 348,239 315,164 43,664 2010 159,836 28,999 325,164 31,295 2011 94,836 24,637 90,164 23,424 2012 97,399 21,440 92,601 20,384 2013 97,399 18,080 92,601 17,189 2014 84,583 14,853 80,417 14,121 2015 84,583 11,766 80,417 11,186 2016 84,583 8,594 80,417 8,170 2017 87,146 5,287 82,854 5,027 2018 89,709 1,794 85,290 1,706 Total $3,568,116 $3,829,493 $2,737,171 $557,579 At December 31, 2003, a total of $377,248 is available in Debt Service Funds to service the General Obligation Tax Increment Bonds and the General Obligation Improvement Bonds. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. The Tax Increment Bonds are payable from the amount of increase in the property taxes on the property in the Tax Increment District. Any deficiencies in revenues from these sources will be provided by general property taxes. 1 i 76 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Long-Term Debt -Other -The City is the administering authority for the following Tax Increment Finance Districts: A. 1977 Downtown CBD Revitalization Plan A3 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 ~ Original Tax Capacity $169,960 ~ Current Tax Capacity (for taxes collectible in 2003) $647,890 Captured Tax Capacity Retained $477,930 Bonds Issued $28,434,721 Principal Payments $26,804,433 Bonds outstanding at December 31, 2003 $1,630,288 ~ ' B. 1984 Modification to the Downtown CBD Revitalization Plan C7 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District August 1, 2009 Original Tax Capacity $17,768 Current Tax Capacity (for taxes collectible in 2003) $26,369 Captured Tax Capacity Retained $8,601 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - C. 1984 University Avenue Redevelopment C8 ~, Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Duration of District Sections 462.545 and 462.585) August 1, 2009 Original Tax Capacity $25,176 Current Tax Capacity (for taxes collectible in 2003) Captured Tax Capacity Retained $147,902 $122,726 Bonds Issued $1,070,000 Principal Payments $1,070,000 Bonds outstanding at December 31, 2003 $ - r ~~ CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 D. 1989 Multi-Use Redevelopment Plan K2 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 462.545 and 462.585) Duration of District October 4, 2014 Original Tax Capacity $4,955 Current Tax Capacity (for taxes collectible in 2003) $26,048 Captured Tax Capacity Retained $21,093 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - E. 1995 Sheffield Tax Increment Financing District M8 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 469.174 to 469.179 inclusion as amended) Duration of District December 31, 2022 Original Tax Capacity $17,773 Current Tax Capacity (for taxes collectible in 2003) $57,820 Captured Tax Capacity Retained $40,216 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - F. 53rd Avenue Tax Increment Financial District N7 Type of District Economic Development Authorizing Law (Minnesota Statutes Section 469.174) Duration of District December 11, 2006 Original Tax Capacity $66,238 Current Tax Capacity (for taxes collectible in 2003) $179,634 Captured Tax Capacity Retained $113,396 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - 78 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 G. Housing and Redevelopment District No. 1 P3 Type of District Redevelopment Authorizing Law (Minnesota Statutes - Section 469.174) Duration of District Original Tax Capacity September 8, 2002 $22,691 Current Tax Capacity (for taxes collectible in 2003) $42,582 Captured Tax Capacity Retained $19,891 Bonds Issued $ Principal Payments = $ Bonds outstanding at December 31, 2003 $ - H. Housing and Redevelopment District No. 1 P4 Type of District Redevelopment Authorizing Law (Minnesota Statutes Section 469.174) Duration of District September 8, 2002 Original Tax Capacity $506 Current Tax Capacity (for taxes collectible in 2003) $885 Captured Tax Capacity Retained $379 Bonds Issued $ Principal Payments $ - i Bonds outstanding at December 31, 2003 $ - I. Housing and Redevelopment District R8 ~ Type of District Redevelopment Authorizing Law (Minnesota Statutes '~ Section 469.174) Duration of District December 15, 2022 Original Tax Capacity $3,411 Current Tax Capacity (for taxes collectible in 2003) $22,333 Captured Tax Capacity Retained $18,922 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 J. Transition Block Redevelopment TIF District No. 9 R8 Type of District Redevelopment Authorizing Law (Minnesota Statutes Section 469.174) Duration of District 2027 Original Tax Capacity $3,411 Current Tax Capacity (for taxes collectible in 2003) $22,333 Captured Tax Capacity Retained $18,922 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - K. K-Mart Central Avenue Renewal and Renovation Type of District Redevelopment Authorizing Law (Minnesota Statutes Section 469.174) Duration of District 2021 Original Tax Capacity $7,104 Current Tax Capacity (for taxes collectible in 2003) $6,847 Captured Tax Capacity Retained $257 Bonds Issued $ - Principal Payments $ - Bonds outstanding at December 31, 2003 $ - ~0 w t 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 CHANGES INLONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2003, is as follows: Governmental activities: Bonds payable Capital appreciation bonds 1990 Improvement bonds: Improvement bonds 1999A Improvement bonds 2003A Total bonds payable Compensated absences Total governmental activity long-term liabilities Business-type activities: Revenue bonds: Utility revenue bonds 1999B Utility revenue bonds 2003A Compensated absences Total business-type activity long-term liabilities Beginning Ending Due Within Balance Additions Reductions Balance One Year $2,008,206 $ - ($377,918) $1,630,288 $350,584 705,000 - (100,000) 605,000 95,000 - 1,332,828 - 1,332,828 69,205 2,713,206 1,332,828 (477,918) 3,568,116 514,789 572,290 404,532 (372,073) 604,749 14,701 $3,285,496 $1,737,360 ($849,991) $4,172,865 $529,490 $1,650,000 $ - ($180,000) $1,470,000 $185,000 - 1,267,171 - 1,267,171 65,795 61,814 35,262 (25,449) 71,627 1,742 $1,711,814 $1,302,433 ($205,449) $2,808,798 $252,537 For governmental activities compensated absences are generally liquidated by the Internal Service Fund. With the exception of the 1990 Tax Increment Bonds, all General Obligation Bonds are serial bonds which require semiannual payments of principal and/or interest from the date the bonds are issued. The 1990 Tax Increment Bonds are Capital Appreciation Bonds which began payments of principal and interest in September 2002. During the year ended December 31, 2003, accreted interest of $3,421,268 was included in governmental activity long-term debt for the 1990 Tax Increment Capital Appreciation Bonds. Note 9 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 31, 2003 there were Revenue Bonds outstanding with an estimated aggregate principal amount payable of approximately $18,520,000. 81 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 Note 10 FUND EQUITY The following funds had a fund deficit as of December 31, 2003: Special Revenue Funds: Anoka County CDBG ($29,069) Cable Television (4,686) Twenty-First Century Grant (2,936) Debt Service Funds: Multi-Use Redevelopment Plan (46,422) G.O. Improvement/Revenue 2003A (4,060) Capital Project Funds: Muncipal State Aid Street Fund (144,898) Sheffield TIF Redevelopment (464,418) TIF District #2 (2,243) TIF Scattered Site (15,118) Total fund deficits ($713,850) The City will finance these deficits through external or internal sources in future years. ~2 T CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS ~' December 31, 2003 At December 31, 2003 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 $14,727 Designated for working capital 3,408,505 ~ Special Revenue Funds: Reserved for prepayments 3,375 Reserved for real estate held for resale 21,113 Reserved for program expenditures 719,351 Designated for working capital 4,352 Designated for maintenance 112,304 Debt Service Funds: r Designated for debt service 892,148 l~ Capital Projects Funds: Reserved for real estate held for resale 232,300 Designated for capital improvements 13,363,488 $18,771,663 Note 11 DEFINED BENEFIT PENSION PLANS -STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City of Columbia Heights are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by state statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to com ute benefits for PERF's Coordinated and Basic Plan members. The retiring p member receives the higher of a step-rate benefit accrual formula (Method 1) or a level accrual formula 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 (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 equa190. A reduced retu-ement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026 B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively, of their annual covered salary. The PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Columbia Heights is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The City's contributions for the last three years which were equal to the contractually required contributions for each year as set by state statute are as follows: Year Ended December 31 PERF PEPFF 2001 $175,714 $172,261 - 2002 210,066 185,404 2003 216,465 179,290 ~4 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS * December 31, 2003 " ' TION FUND Note 12 DEFINED BENEFIT PENSION PLAN -POLICE AND FIRE CONSOLIDA TERMINATED PLAN -PFCF Until July 1, 1999, the City of Columbia Heights was a participant in the PERA Police and Fire Consolidation Fund (PFCF), an agent, multiple-employer defined benefit plan. Effective July 1, 1999 this plan was ~~ terminated and all assets and liabilities were transferred to the Police and Fire Fund (PEPFF), a cost sharing multiple-employer plan. Upon termination, a final actuarial valuation determined the unfunded actuarial accrued liability (UAAL) for each participant. The City of Columbia Heights' remaining obligation to the PFCF is repayment of the UAAL, which is payable in 10 equal annual installments from 1999 - 2009. Annual payments for the City of Columbia ~, Heights are $56,706 for the fire and police accounts. During 2003, it was decided that the entire outstanding amount of $325,675 was to be paid off. Note 13 DEFINED CONTRIBUTION PLAN -FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION PLAN DESCRIPTION ~., The Columbia Heights Fire Department Relief Association is the administrator of asingle-employer pension plan for the volunteer members of the City of Columbia Heights Fire Department. Through October 26, 1997, the association operated as a defined benefit plan. Effective October 27, 1997, the association amended its by-laws and converted to a defined contribution plan. The pension plan was fully funded at the time of conversion. Benefits and contribution requirements are established by the association's by-laws and can be amended by the association's board of directors with approval from the City of Columbia Heights. All provisions are within limitations established by Minnesota statutes. Type of Benefit. The exclusive pension provided by the association is a "Defined Contribution Lump Sum Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4. Contributions Required and Contributions Made. No contributions are required from the plan members or the City of Columbia Heights. The plan is funded through state aid, investment income and discretionary contributions from the City of Columbia Heights. For 2003 state aid was contributed to the plan. w t 1 ~5 C CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 ,~ Note 14 COMMITMENTS AND CONTINGENCIES ?~ A. RISI{ MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; ~~ errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property, casualty, and automobile insurance coverage are provided through a pooled self-insurance ~ program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial ,~ companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including employee health and ;~ disability insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. B. LITIGATION The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. 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. 1 1 86 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2003 '~ 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 fmancial statements. ~. E. CONTRACTUAL COMMITMENTS The City has entered into several contractual commitments that are in process at year end. At December 31, 2003, the City's committed obligation for such projects were approximately $240,000. In addition to these contractual commitments, the City has a contract with the City of Minneapolis for the purchase of the City's water supply. This water supply flows through one master meter located at the Ciry of Minneapolis reservoir. During the years 2001, 2002 and 2003 there were periods of time where the meter was dysfunctional and it was necessary for Minneapolis to estimate the water flowage. Due to the age of the meter, there are also some concerns as to its overall accuracy, a result of which could be that the City was billed for less water than was actually consumed which could result in an outstanding liability to the City of Minneapolis. At the present time there is not adequate information to determine the full extent of any potential contingent liability. Note 15 SUBSEQUENT EVENTS In 2004, the City received grants totaling approximately $1.8 million from the Department of Employment and Economic Development (DEED) and other sources for environmental cleanup of properties located within the City. Note 16 PRIOR PERIOD ADJUSTMENT Accumulated depreciation of the governmental activities capital assets was understated at December 31, 2003. As a result of this adjustment, net assets were restated as follows: Net assets -December 31, 2002, as previously reported $35,362,712 ,~ Prior period adjustment 395,870 Net assets -January 1, 2003, as restated $35,758,582 I ,~ 87 1 -This page intentionally left blank - ~~ r t f 1 ~~ ~. REQUIRED SUPPLEMENTARY INFORMATION ' 89 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE -GENERAL FUND For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 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: Miscellaneous Proceeds from sale of assets Total revenues Expenditures: General government: Council Manager Legal Finance and elections Assessing General government buildings Total general government Public safety: Police/animaUcivil defense Fire 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 Statement 10 , Page 1 of 2 2003 Variance with ' Budgeted Amounts Final Budget 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts ' $4,243,830 $4,243,830 $3,646,155 ($597,675) $3,534,854 305,320 305,320 281,480 (23,840) 277,924 ' _ - 607,324 607,324 570,151 2,752,234 2,395,410 2,257,023 (138,387) 2,875,932 447,700 447,700 407,914 (39,786) 414,739 ' 90,000 90,000 140,378 50,378 84,346 200,000 200,000 135,976 (64,024) 278,819 , _ - (84,760) (84,760) 68,523 4,400 4,400 6,265 1,865 5,903 5,000 5,000 27,652 22,652 12,454 , 8,048,484 7,691,660 7,425,407 (266,253) 8,123,645 194,514 188,514 198,725 (10,211) 198,755 412,706 397,796 359,692 38,104 363,241 196, 572 186,743 168,003 18,740 169,49 8 652,078 619,879 611,744 8,135 619,584 101,000 101,000 92,113 8,887 110,272 158,546 158,546 102,697 55,849 114,155 ' 1,715,416 1,652,478 1,532,974 119,504 1,575,505 2,887,710 2,781,773 2,467,085 314,688 2,500,331 916,572 956,548 1,024,854 (68,306) 880,562 3,804,282 3,738,321 3,491,939 246,382 3,380,893 231 479 ' 319,076 275,641 226,385 49,256 , 889,986 849,541 755,067 94,474 721,077 120,928 117,528 109,243 8,285 121,921 1 329 990 1,242,710 1,090,695 152,015 1,074,477 , , 1,501,324 1,432,538 1,203,211 229,327 1,213,016 68,500 63,949 4,883 59,066 - ' 1,569,824 1,496,487 1,208,094 288,393 1,213,016 512 419 8 8,129,996 7,323,702 806,294 7,243,891 ' , , (371,028) (438,336) 101,705 540,041 879,754 ' 90 t CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE -GENERAL FUND Page 2 of 2 For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 2003 Variance with Budgeted Amounts Final Budget 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts Other financing sources (uses): Transfers in $479,738 $479,738 $480,052 $314 $670,769 Transfers out (480,000) (451,036) (674,131) (223,095) (1,932,293) Total other financing sources (uses) (262) 28,702 (194,079) (222,781) (1,261,524) Net change in fund balances ($371,290) ($409,634) (92,374) $317,260 (381,770) Fund balance -beginning 3,515,606 3,897,376 Fund balance -ending $3,423,232 $3,515,606 91 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - ANOKA COUNTY CDBG , For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 , 2003 ' Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: overnmental $ - $ - Inter $50,000 $50,000 $383,183 g ' Expenditures: Personal services - - - - 3,204 Supplies - - - - 146 ' Other services and charges - - - - 7,097 Loans and grants - - 53,752 (53,752) 405,447 enditures 0 0 Total ex 53,752 (53,752) 415,894 ' p Revenues over (under)expenditures 0 0 (3,752) (3,752) (32,711) Other financing sources (uses): Transfers out - - - - (5,913) Net change in fund balance $0 $0 (3,752) ($3,752) (38,624) innin Fund balance -be (25,317) 13,307 g g Fund balance - endin g ($29,069) ($25,317) ' 92 ' CITY OF COLUMBIA HEIGHTS MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE -NOTE TO RSI December 31, 2003 S Note A LEGAL COMPLIANCE -BUDGET The City of Columbia Heights' budget is legally adopted on a basis consistent with generally accepted ' accounting principals. The legal level of budgetary control is at the fund level. The following is a listing of funds whose actual expenditures exceeded budgeted expenditures (appropriations) in the following funds for 2003: Final Over Budget Actual Budget Major fund: ' _ Anoka County CDBG $ $53,752 $53,752 Expenditures in the Anoka County CDBG Fund are over budget by $53,752 due to the purchase of ' properties funded by grant monies. This was not included in the 2003 budget. 93 1 -This page intentionally left blank - 94 r 1 ~J ~l I [~ fl COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 95 -This page intentionally left blank - 96 ~j 1 1 r NONMAJOR GOVERNMENTAL FUNDS 97 ~~ - This page intentionally left blank - irk ~~~ 98 i ' SPECIAL REVENUE FUNDS A Special Revenue Fund is used to account for the proceeds of special revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal, and related costs on general long-term debt. CAPITAL PROJECT FUNDS The Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds. L li 99 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2003 With Com arative Totals For December 31 2002 Statement 12 P Assets Cash and investments Receivables: Accounts Taxes Interest Loans 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: Reserved for prepayments Reserved for real estate held for resale Reserved for program expenditures Unreserved: Designated for working capital Designated for maintenance Designated for debt service Designated for capital improvements Undesignated Total fund balance Total liabilities and fund balance Totals Nonmajor , Special Debt Capital Governmental Funds Revenue Service Project 2003 2002 $1,562,110 $796,935 $5,636,857 $7,995,902 $8,448,550 208,449 - - 208,449 48,087 9,403 55,258 2,731 67,392 16,511 13,531 8,617 44,178 66,326 83,525 6,545 - - 6,545 10,433 72,410 - 145,000 217,410 258,281 - 45,015 39,528 84,543 210,136 3,375 - - 3,375 4,156 21,113 - 160,800 181,913 165,836 $1,896,936 $905,825 $6,029,094 $8,831,855 $9,245,515 $68,255 $5,480 $129,643 $203,378 $538,230 21,113 - 141 21,254 11,027 - - 2,980 2,980 1,000 299,541 - 98,000 397,541 43,040 71,313 45,014 46,851 163,178 263,685 , 34,532 13,665 - 48,197 50,758 18,470 - 30,500 48,970 21,980 513,224 64,159 308,115 885,498 929,720 3,375 - - 3,375 4,156 21,113 - 160,800 181,913 165,836 719,351 - - 719,351 780,821 , 4,352 - - 4,352 46,715 112,304 - - 112,304 102,590 - 892,148 - 892,148 1,240,225 - - 4,681,067 4,681,067 5,148,402 523,217 (50,482) 879,112 1,351,847 827,050 1,383,712 841,666 5,720,979 7,946,357 8,315,795 ' $1,896,936 $905,825 $6,029,094 $8,831,855 $9,245,515 100 t 1 t 1 r~ 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 13 NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Revenues: Taxes Tax increment collections Intergovernmental Charges for services Investment income: Interest and dividends Change in fair value Other revenues Total revenues Expenditures: Current: General government Public safety 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 Miscellaneous Developer incentives Contractual services Total expenditures Revenues over (under) expenditures Other financing sources (uses): Sale of land Recaptured HRA monies Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Special Debt Capital Revenue Service Project $652,556 $ - $ - - 583,961 158,537 385,760 86,379 148,235 717,517 - - Totals Nonmaj or Governmental Funds 2003 2002 $652,556 $809,663 742,498 760,524 620,374 940,108 717,517 752,137 58,178 39,505 202,528 300,211 394,153 (7,304) (18,928) (97,035) (123,267) 96,866 141,390 - 211,999 353,389 154,547 1,948,097 690,917 624,264 3,263,278 3,907,998 146,375 - - 146,375 292,970 100,507 - - 100,507 448,285 656,600 - - 656,600 684,674 1,087,320 - - 1,087,320 1,062,488 21,291 - 13,793 35,084 70,591 22,836 - 66,642 89,478 - 5,985 - 20,549 26,534 26,610 55,824 - - 55,824 257,425 - 477,918 - 477,918 716,515 - 569,513 - 569,513 530,985 - 33,079 - 33,079 30,237 - - 85,211 85,211 104,258 - - 510,847 510,847 66,885 2,096,738 1,080,510 697,042 3,874,290 4,291,923 (148,641) (389,593) (72,778) (611,012) (383,925) 150,421 - 117,278 267,699 - (104,471) - - (104,471) - 437,734 964,363 150,000 1,552,097 3,636,964 (283,087) (920,750) (269,914) (1,473,751) (3,034,600) 200,597 43,613 (2,636) 241,574 602,364 51,956 (345,980) (75,414) (369,438) 218,439 Fund balance -beginning 1,331,756 1,187,646 5,796,393 8,315,795 8,097,356 Fund balance -ending $1,383,712 $841,666 $5,720,979 $7,946,357 $8,315,795 101 - This page intentionally left blank - LI 102 , NONMAJOR SPECIAL REVENUE FUNDS The City of Columbia Heights had the following Special Revenue Funds during the year: Community Development Fund -established to account for revenues and expenditures associated with planning, building inspections, and community development projects within the City. Cable Television Fund -established to account for revenues and expenditures associated with cable television franchise. Library Fund -established in 1993 to account for revenues and expenditures of the library. D.A.R.E. Program Fund -established to account for revenues and expenditures of DARE (Drug Awareness) Program. Special Projects Fund -established to monitor revenues from special projects and related expenditures. i C.H.A.S.E. Fund -established to account for revenues and expenditures associated with a State grant received for community participation in youth enrichment programs. Twenty-First Century Grant -established to account for revenues and expenditures associated with a grant received through the school district. ,' Confiscated Property Fund -established to account for funds from property confiscated by the Police Department. Local Law Enforcement Block Grant Fund -established to account for revenues and expenditures associated with a federal grant received for the purchase of equipment to aid in crime prevention. COPS MORE 96 Grant -established to account for revenues and expenditures associated with a federal grant received for technical service equipment and personnel. Juvenile Justice Grant -established to account for revenues and expenditures associated with the removal of graffiti in the City. 103 COPS School Partnership Grant -established to account for revenues and expenditures associated with a federal grant received to address identified crime problems within the schools. Recreation Contributed Projects Fund -established to monitor contributions for recreational activities and related expenditures. Contributed Projects Fund -established to monitor contributions and related expenditures. Flex Benefit -established to account for contributions by employees and related expenditures for flexible benefits. Police/Fire Contin enc Fund -established to account for future years expenditures related to police and fire. Housing and Redevelopment Authority- a separate legal entity from the City. The mayor and City Council comprise the majority membership of this component unit. Its purpose is to provide housing in the City. Parkview Villa North Fund -established to account for revenues and expenditures associated with low-income federally subsidized senior housing. Parkview Villa South Fund -established to account for revenues and expenditures associated i with an EDA owned senior housing complex. Rental Housing Fund -established to account for revenues and expenditures of City-owned rental properties. Economic Development Authority - a separate legal entity from the City. The mayor and City ,, Council comprise the majority membership of this component unit. Its purpose is economic development in the City. Economic Development Authorit~Administration Fund -established to account for revenues and expenditures associated with business development and community redevelopment projects in the City. Business Revolving Loan Fund -established to account for revenues and expenditures associated with business development through a business revolving loan fund. Section 8 Fund -established to account for revenues and expenditures associated with the administration of Section 8 rental assistance programs within the City. 104 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 14 NONMAJOR SPECIAL REVENUE FUNDS Page 1 of 2 December 31, 2003 With Comparative Totals For December 31, 2002 Community Development Cable D.A.R.E. Special Fund Television Library Program Projects Assets Cash and investments $98,594 $ - $23,556 $22,969 $18,938 Receivables: Accounts - 34,356 - - 14,631 Taxes - = - = - Interest 429 1,766 76 Loans - - - - - Due from other governmental units Prepayments = - 485 - 2,862 = _ Real estate held for resale - - - - - Total assets $99,023 $34,841 $28,184 $22,969 $33,645 Liabilities and Fund Balance Liabilities: Accounts payable $4,192 $ - $1,757 $ - $12,500 Accrued salaries and withholdings payable 8,054 = 11,064 = _ Due to other governmental units 4,233 2,830 Interfund payable - 39,527 - - - Deferred revenue Deposits = = = = 10,969 Total liabilities 16,479 39,527 15,651 0 23,469 Fund balance: Reserved for prepayments 485 2,862 - Reserved for real estate held for resale - - - - - Reserved for program expenditures - - - - - Unreserved: Designated for working capital - - 4,352 - - Designated for maintenance - - - - - ' Undesignated 82,544 (5,171) 5,319 22,969 10,176 Total fund balance 82,544 (4,686) 12,533 22,969 10,176 Total liabilities and fund balance $99,023 $34,841 $28,184 $22,969 $33,645 ~ ,a. CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2003 With Comparative Totals For December 31, 2002 Twenty-First Local Law COPS Century Confiscated Enforcement More 96 C.H.A.S.E. Grant Properly Block Grant Grant ' Assets Cash and investments $58,625 $ - $15,629 $17,175 $ - Receivables: ' Accounts - - - - - Taxes - - - - - Interest 463 - - 107 - Loans - - - - - Due from other governmental units Prepayments - - 26,003 28 = - = - _ - Real estate held for resale - Total assets $59,088 $26,031 $15,629 $17,282 $0 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $530 $ - $ - Accrued salaries and withholdings payable - 385 - - - Due to other governmental units - - - - - Interfund payable - 28,582 - - - Deferred revenue Deposits - - - - - - 12,616 - - - , Totalliabilities 0 28,967 530 12,616 0 Fund balance: , Reserved for prepayments - 28 - - - Reserved for real estate held for resale - - - - - Reserved for program expenditures - - - - - Unreserved: Designated for working capital - - - - - Designated for maintenance - - - - - Undesignated 59,088 (2,964) 15,099 4,666 - ' Total fund balance 59,088 (2,936) 15,099 4,666 0 Total liabilities and fund balance $59,088 $26,031 $15,629 $17,282 $0 106 ' e Statement 14 Page 2 of 2 Totals Juvenile Recreation Housing and Economic Nonmajor Justice Contributed Contributed Flex Police/Fire Redevelopment Development Special Revenue Funds Grant Projects Projects Benefit Contingency Authority Authority 2003 2002 $200 $98,718 $24,574 $41,512 $ - $726,317 $415,303 $1,562,110 $1,583,722 - - - - - 159,462 - 208,449 48,087 - - - - - - 9,403 9,403 3,703 - - - 362 - 7,012 3,316 13,531 27,092 - - - - - - 6,545 6,545 10,433 3,865 - - - - 42,542 - 72,410 255,242 - - - - - - - 3,375 4,156 - - - - - - 21,113 21,113 165,836 $4,065 $98,718 $24,574 $41,874 $0 $935,333 $455,680 $1,896,936 $2,098,271 $ - $ - $ - $4,219 $ - $44,807 $250 $68,255 $475,859 136 - - - - 925 549 21,113 11,027 - - - - - 292,478 - 299,541 43,033 3,204 - - - - - - 71,313 173,870 - - - - - - 10,947 34,532 40,746 - - - - - 18,470 - 18,470 21,980 3,340 0 0 4,219 0 356,680 11,746 513,224 766,515 - - - - - - - 3,375 4,156 - - - - - - 21,113 21,113 165,836 - - - - - 412,925 306,426 719,351 780,821 - - - - - - - 4,352 46,715 - - - - - 112,304 - 112,304 102,590 725 98,718 24,574 37,655 - 53,424 116,395 523,217 231,638 725 98,718 24,574 37,655 0 578,653 443,934 1,383,712 1,331,756 $4,065 $98,718 $24,574 $41,874 $0 $935,333 $455,680 $1,896,936 $2,098,271 107 fl i ~J t t -This page intentionally left blank - 108 , CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND Statement 15 CHANGES IN FUND BALANCE Page 1 of 2 NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 C ommumty Development Cable D.A.R.E. Special Fund Television Library Program Projects Revenues: Taxes $ - $ - $433,585 $ - $ - Intergovernmental - 141,850 = 25,000 Fees/program revenues = 135,659 18,781 40,077 Rents - - - - - Investment income: Interest and dividends 1,965 8,096 348 Change in fair value (941) - (3,879) - (167) Other revenues: Miscellaneous 11 20 Contributions - - - 550 - Total revenues 1,035 135,679 598,433 550 65,258 Expenditures: Parks and recreation: Personal services - - - - Supplies Other services and charges - - - - - Other: Personal services 196,772 2,303 436,410 Supplies 6,291 15,133 102,093 5,151 - Other services and charges 74,097 16,038 78,212 2,003 36,963 Capital outlay - - 5,985 - 22,836 Total expenditures 277,160 33,474 622,700 7,154 59,799 Revenues over (under) expenditures (276,125) 102,205 (24,267) (6,604) 5,459 Other financing sources (uses): Sale of land = = _ = Recaptured HUD monies Transfers in 361,648 - - 9,000 - Transfers out (16,226) (109,330) (14,071) - - Total other financing sources (uses) 345,422 (109,330) (14,071) 9,000 0 Net change in fund balance 69,297 (7,125) (38,338) 2,396 5,459 Fund balance -beginning 13,247 2,439 50,871 20,573 4,717 Fund balance -ending $82,544 ($4,686) $12,533 $22,969 $10,176 109 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Twenty-First Local Law COPS Juvenile Century Confiscated Enforcement More 96 Justice C.H.A.S.E. Grant Property Block Grant Grant Grant Revenues: Taxes $ - $ - $ - $ - $ - $ - Intergovernmental 6,319 35,174 - 17,048 - 6,436 Fees/program revenues 8,492 - - - - - Rents - - - - - - Investment income: Interest and dividends 2,124 - - 490 - - Change in fair value (1,018) - - (235) - - Other revenues: Miscellaneous - - 4,430 - - - Contributions - - - - - - Total revenues 15,917 35,174 4,430 17,303 0 6,436 Expenditures: Parks and recreation: Personal services 2,431 - - - - - Supplies 131 - - - - - Other services and charges 3,754 - - - - - Other: Personal services - 23,955 - 1,243 - 5,805 Supplies - 1,730 1,126 3,666 - 213 Other services and charges - 12,425 1,326 15,641 - 1,311 Capital outlay - - - - - - Total expenditures 6,316 38,110 2,452 20,550 0 7,329 Revenues over (under) expenditures 9,601 (2,936) 1,978 (3,247) 0 (893) Other financing sources (uses): Sale of land - - - - - - Recaptured HUD monies - - - - - - Transfers in - - - 1,402 - 655 Transfers out - - - - (314) - Total other financing sources (uses) 0 0 0 1,402 (314) 655 Net change in fund balance 9,601 (2,936) 1,978 (1,845) (314) (238) Fund balance -beginning 49,487 - 13,121 6,511 314 963 Fund balance -ending $59,088 ($2,936) $15,099 $4,666 $0 $725 110 Statement 15 Page 2 of 2 Cops School Recreation Partnership Contributed Contributed Grant Projects Projects $ - $ - $ - Totals Housing and Economic Nonmajor Flex Police/Fire Redevelopment Development Special Revenue Funds Benefit Contingency Authority Authority 2003 2002 $ - $ - $ - $218,971 $652,556 $809,663 - - 141,473 12,460 385,760 848,254 - - - 20,781 223,790 259,545 - - 493,727 - 493,727 492,592 - - - 1,662 - 28,289 15,204 58,178 127,842 - - - (796) - 7,016 (7,284) (7,304) 31,418 ,. - - - 59,740 - 8,301 - 72,502 85,034 - 29,568 38,770 - - - - 68,888 43,950 0 29,568 38,770 60,606 0 678,806 260,132 1,948,097 2,698,298 - - 2,431 48,681 _ = = = = 131 15,744 - 1,775 - - - - - 5,529 25,608 - - - - - 50,400 77,659 794,547 735,592 - - 20,182 - - 13,786 1,030 170,401 183,296 _ = 1,063 21,291 54,693 56,706 630,412 55,824 36,873 1,017,763 105,936 1,479,496 257,425 0 1,775 42,536 54,693 56,706 750,422 115,562 2,096,738 2,745,842 0 27,793 (3,766) 5,913 (56,706) (71,616) 144,570 (148,641) (47,544) - 150,421 150,421 = = = = = (104,471) = (104,471) - - - - 56,706 8,323 - 437,734 423,888 - (20,044) (123,102) (283,087) (1,701,985) 0 0 0 0 56,706 34,229 (123,102) 200,597 (1,278,097) ~f 0 27,793 (3,766) 5,913 0 (37,387) 21,468 51,956 (1,325,641) - 70,925 28,340 31,742 - 616,040 422,466 1,331,756 2,657,397 $0 $98,718 $24,574 $37,655 $0 $578,653 $443,934 $1,383,712 $1,331,756 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -COMMUNITY DEVELOPMENT Statement 16 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 With Comparative Totals For the Year Ended December 31, 2002 2003 Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual , Original Final Amounts (Negative) Amounts Revenues: Investment income: Interest and dividends $ - $ - $1,965 $1,965 $1,242 Change in fair value - - (941) (941) 305 Other - - 11 11 - , Total revenues 0 0 1,035 1,035 1,547 ~ Expenditures: Personal services 279,887 260,672 196,772 63,900 245,345 ' Supplies 16,525 16,525 6,291 10,234 8,635 Other services and charges 50,365 40,616 74,097 (33,481) 43,652 Total expenditures 346,777 317,813 277,160 40,653 297,632 Revenues over (under) expenditures (346,777) (317,813) (276,125) 41,688 (296,085) Other financing sources (uses): Transfers in 361,648 340,797 361,648 20,851 284,702 Transfers out (16,226) (16,226) (16,226) - (11,826) Total other financing sources (uses) 345,422 324,571 345,422 20,851 272,876 Net change in fund balance ($1,355) $6,758 69,297 $62,539 (23,209) Fund balance -beginning 13,247 36,456 Fund balance -ending $82,544 $13,247 1 1 L fl 112 , CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -CABLE TELEVISION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 With Comparative Actual Amounts For the Year Ended December 31, 2002 Statement 17 2003 Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: Franchise fees $130,000 $130,000 $135,659 $5,659 $129,386 Investment income: Interest and dividends 15,000 15,000 - (15,000) 15,925 Change in fair value - - - - 3,914 Other revenues: Miscellaneous - - 20 20 18,827 Total revenues 145,000 145,000 135,679 (9,321) 168,052 Expenditures: Personal services 6,434 6,434 2,303 4,131 1,973 Supplies 9,602 9,602 15,133 (5,531) 2,302 Other services and charges 41,608 41,608 16,038 25,570 144,927 Total expenditures 57,644 57,644 33,474 24,170 149,202 R enu d ) dit 356 87 87 356 102 205 14 849 18 850 ev es over (un er expen ures , , , , , Other financing sources (uses): Transfers out (109,330) (109,330) (109,330) - (408,549) Net change in fund balance ($21,974} ($21,974) (7,125) $14,849 (389,699) Fund balance -beginning 2,439 392,138 Fund balance -ending ($4,686) $2,439 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -LIBRARY FUND Statement 18 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 With Comparative Actual Amounts For the Year Ended December 31, 2002 2003 Revenues: Taxes Intergovernmental Charges for services 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 (under) expenditures Other financing sources (uses): Transfers out Net change in fund balance Fund balance -beginning Fund balance -ending Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts $433,585 $433,585 $433,585 $ - $591,588 175,750 141,850 141,850 - - 21,700 21,700 18,781 (2,919} 17,522 6,000 6,000 8,096 2,096 5,744 - - (3,879) (3,879) 1,411 250 250 - (250) - 637,285 603,385 598,433 (4,952) 616,265 428,302 428,302 436,410 (8,108) 415,421 96,825 96,825 102,093 (5,268) 104,984 81,652 81,052 78,212 2,840 74,236 49,050 18,550 5,985 12,565 - 655,829 624,729 622,700 2,029 594,641 (18,544) (21,344) (24,267} (2,923) 21,624 (22,071) (14,071) (14,071) - (209,292) ($40,615) ($35,415) (38,338) ($2,923) (187,668) 50,871 238,539 $12,533 $50,871 1 114 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - D.A.R.E. PROGRAM Statement 19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 With Comparative Actual Amounts For the Year Ended December 31, 2002 2003 Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: Contributions $ - $ - $550 $550 $526 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 5,850 5,850 5,151 699 2,381 2,975 2,975 2,003 972 2,470 8,825 8,825 7,154 1,671 4,851 (8,825) (8,825) (6,604) (1,121) (4,325) 9,000 9,000 9,000 - 9,000 $175 $175 2,396 ($1,121) 4,675 20,573 $22,969 15,898 $20,573 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -SPECIAL PROJECTS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Statement 20 2003 2002 Revenues: Intergovernmental $25,000 $ - Fees/program revenue 40,077 88,714 Investment income: Interest and dividends 348 15,516 Change in fair value (167) 3,813 Total revenues 65,258 108,043 ~, Expenditures: , Other services and charges 36,963 72,300 ~ Capital outlay 22,836 - Total expenditures 59,799 72,300 ~~ Revenues over expenditures 5,459 35,743 Other financing sources (uses): Transfers out - (330,000) Net change in fund balance 5,459 (294,257) Fund balance -beginning 4,717 298,974 Fund balance -ending $10,176 $4,717 1 1 „6 ~ t 1 1 1 1 1 1 1 1 1 r i CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - C .H .A .S .E . Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Revenues: Intergovernmental: State grant Fees/program revenue 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 Fund balance -beginning Fund balance -ending 2003 2002 $6,319 $78,256 8,492 11,381 2,124 1,414 (1,018) 348 15,917 91,399 2,431 48,681 131 7,741 3,754 22,170 6,316 78,592 9,601 12,807 49,487 36,680 $59,088 $49,487 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -TWENTY-FIRST CENTURY GRANT Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 Revenues: Intergovernmental: State grant Expenditures: Personal services Supplies Other services and charges Total expenditures Revenues over (under) expenditures Fund balance -beginning Fund balance -ending 2003 $35,174 23,955 1,730 12,425 38,110 (2,936) ($2,936) 1 1 118 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -CONFISCATED PROPERTY Statement 23 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Revenues: Other revenue: Confiscated property Expenditures: Supplies Other services and charges Total expenditures Revenues over (under) expenditures Fund balance -beginning Fund balance -ending 2003 2002 $4,430 $3,860 1,126 1,326 2,452 1,978 13,121 $15,099 797 315 1,112 2,748 10,373 $13,121 119 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -LOCAL LAW ENFORCEMENT BLOCK GRANT Statement 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 2003 2002 Revenues: Intergovernmental: Federal grant $17,048 $26,351 Investment income: Interest and dividends 490 1,269 Change in fair value (235) 312 Total revenues 17,303 27,932 Expenditures: Personal services 1,243 - Supplies 3,666 30,695 Other services and charges 15,641 3,911 Total expenditures 20,550 34,606 Revenues over (under) expenditures (3,247) (6,674) Other financing sources (uses): Transfers in 1,402 1,916 Net change in fund balance (1,845) (4,758) Fund balance -beginning 6,511 11,269 Fund balance -ending $4,666 $6,511 ~~ 120 1 1 1 1 1 i f 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -COPS MORE 96 Statement 25 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Revenues Expenditures Revenues over (under) expenditures Other financing sources (uses): Transfers out Net change in fund balance Fund balance -beginning Fund balance -ending 2003 $ - 0 (314) (314) 314 2002 $ - 0 0 314 $0 $314 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -JUVENILE NSTICE GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Statement 26 2003 2002 Revenues: Intergovernmental: State grant $6,436 $12,462 ,~ Expenditures: Personal services 5,805 4,372 Supplies 213 107 Other services and charges 1,311 9,055 Total expenditures 7,329 13,534 Revenues over (under) expenditures (893) (1,072) Other financing sources (uses): Transfers in 655 893 Net change in fund balance (238) (179) Fund balance -beginning 963 1,142 Fund balance -ending $725 $963 '~ ~, ,~ 122 ~t ~' CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE HIND -COPS SCHOOL PARTNERSHIP GRANT SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Statement 27 2003 2002 Revenues: Intergovernmental: Federal grant $ - $6,611 Expenditures: Personal services - - Supplies - 1,124 Other services and charges - 5,487 Capital outlay - - Total expenditures 0 6,611 Revenues over expenditures 0 0 Fund balance -beginning - - Fund balance -ending $0 $0 ,~ 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -RECREATION CONTRIBUTED PROJECTS SCHEDULE OF REVENUES, EXPENDITURES AND Statement 28 CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 2003 2002 Revenues: Contributions $29,568 $29,145 Expenditures: Supplies - 8,003 Other services and charges 1,775 3,438 Total expenditures 1,775 11,441 Revenues over (under) expenditures 27,793 17,704 Fund balance -beginning 70,925 53,221 Fund balance -ending $98,718 $70,925 124 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -CONTRIBUTED PROJECTS Statement 29 ' SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 2003 2002 Revenues: Contributions $3 8,770 $14,279 Expenditures: Supplies 20,182 9,654 Other services and charges 1,063 10,367 ' Capital outlay 21,291 Total expenditures 42,536 20,021 Revenues over (under) expenditures (3,766) (5,742) Fund balance -beginning 28,340 34,082 Fund balance -ending $24,574 $28,340 ' 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -FLEX BENEFIT FUND Statement 30 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Revenues: Investment Income: Interest and dividends Change in fair value Other revenue: Flex withholding Total revenues 2003 $1,662 (796) 59,740 60,606 2002 $1,744 429 54,522 56,695 Expenditures: Other services and charges Revenues over expenditures Fund balance -beginning Fund balance -ending 54,693 5,913 31,742 $37,655 51,447 5,248 26,494 $31,742 126 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -POLICE/FIRE CONTINGENCY Statement 31 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Amounts For the Year Ended December 31, 2002 Revenues: Intergovernmental Investment income: Interest and dividends Change in fair value Total revenues Expenditures: Other services and charges Revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other fmancing sources (uses) Net change in fund balance Fund balance -beginning Fund balance -ending 2003 $ - 0 56,706 (56,706) 56,706 56,706 0 $0 2002 $118,602 22,691 5,577 146,870 387,571 (240,701) (238,057) (238,057) (478,758) 478,758 $0 127 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 32 ' COMBINING BALANCE SHEET December 31, 2003 With Comparative Totals For December 31, 2002 Totals Parkview Parkview Housing and Villa Villa Rental Redevelopment Authority North South Housing 2003 2002 Assets ' Cash and investments $528,567 $146,242 $51,508 $726,317 $610,148 Receivables: Accounts 718 - 158,744 159,462 688 ' Interest 5,285 1,315 412 7,012 6,539 Due from other governmental units 42,542 - - 42,542 240,629 Real estate held for resale - - - - 144,723 ' Total assets $577,112 $147,557 $210,664 $935,333 $1,002,727 ' Liabilities and Fund Balance Liabilities: ' Accounts payable $27,217 $14,942 $2,648 $44,807 $181,468 Accrued salaries and withholdings payable 631 294 - 925 104 Due to other governmental units 124,079 14,207 154,192 292,478 38,335 ' Interfund payable - - - - 144,800 Deposits 12,260 5,810 400 18,470 21,980 Total liabilities 164,187 35,253 157,240 356,680 386,687 Fund balance: Reserved for real estate held for resale Reserved for program expenditures - 412,925 - - - - - 412,925 144,723 474,393 Unreserved: Designated for maintenance - 112,304 - 112,304 102,590 Undesignated - - 53,424 53,424 (105,666) Total fund balance 412,925 112,304 53,424 578,653 616,040 Total liabilities and fund balance $577,112 $147,557 $210,664 $935,333 $1,002,727 , 128 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 33 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ' For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Parkview Parkview Totals Housing and Villa Villa Rental Redevelopment Authority North South Housing 2003 2002 Revenues: Intergovernmental $141,473 $ - $ - $141,473 $367,847 Rents 284,080 191,338 18,309 493,727 492,592 Investment income: Interest and dividends 21,142 5,259 1,888 28,289 30,859 Change in fair value 6,343 1,578 (905) 7,016 7,583 Other revenues: Miscellaneous 3,171 3,912 1,218 8,301 3,615 Total revenues 456,209 202,087 20,510 678,806 902,496 ' Expenditures: Personal services 32,055 18,345 - 50,400 15,374 Supplies 10,179 3,418 189 13,786 17,160 Other services and charges 303,694 162,020 164,698 630,412 423,382 Capital outlay 55,824 55,824 257,425 Total expenditures 401,752 183,783 164,887 750,422 713,341 ' di 54 457 304 18 (144 377) 616) (71 189 155 Revenues over (under) expen tures , , , , , Other financing sources (uses): Sale of land - 150,421 150,421 Recaptured HUD monies (104,471) - - (104,471) - Transfers in Transfers out - (11,454) - (8,590) 8,323 8,323 (20,044) - (13,798) Total other financing sources (uses) (115,925) (8,590) 158,744 34,229 (13,798) ' Net change in fund balance (61,468) 9,714 14,367 (37,387) 175,357 Fund balance -beginning 474,393 102,590 39,057 616,040 440,683 92 $112 304 424 $53 $578 653 040 $616 Fund balance -ending $412, 5 , , , , u 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY- Statement 34 ' PARKVIEW VILLA NORTH -SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES 1N FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 ' With Comparative Actual Amounts For the Year Ended December 31, 2002 2003 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 Budget Amounts Original Final $99,082 277,560 Actual Amounts $99,082 $141,473 277,560 284,080 Variance with Final Budget- 2002 Positive Actual ' (Negative) Amounts $42,391 $367,847 6,520 284,198 9,000 9,000 21,142 12,142 6,343 6,343 4,500 4,500 3,171 (1,329) 390,142 390,142 456,209 66,067 22,613 5,557 2,078 682,293 ' 16,251 16,251 32,055 (15,804) 9,111 22,054 22,054 10,179 11,875 10,221 304,391 304,391 303,694 697 270,710 6,357 6,357 55,824 (49,467) 248,336 349,053 349,053 401,752 (52,699) 538,378 ' 41,089 41,089 54,457 13,368 143,915 Other financing sources (uses): r Recaptured HUD monies - - (104,471) (104,471) - Transfers out Total other financin sources (uses) (11,454) (11,454) (11,454) 454) (115 925) 454) (11 (11 - (7,884) 884) 471) (7 (104 g , , , , , Net change in fund balance $29,635 $29,635 (61,468) ($91,103) 136,031 Fund balance -beginning 474,393 338,362 Fund balance -ending $412,925 $474,393 1 130 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY - Statement 35 PARKVIEW VILLA SOUTH -SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL ' For The Year Ended December 31, 2003 With Comparative Actual Amounts For the Year Ended December 31, 2002 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 (under) expenditures Other financing sources (uses): Transfers out Net change in fund balance Fund balance -beginning Fund balance -ending 2003 Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts $187,620 $187,620 $191,338 $3,718 $191,944 7,000 7,000 5,259 (1,741) 5,701 - - 1,578 1,578 1,401 3,600 3,600 3,912 312 1,342 198,220 198,220 202,087 3,867 200,388 12,388 12,388 18,345 (5,957) 6,263 9,328 9,328 3,418 5,910 6,359 168,275 168,275 162,020 6,255 141,364 15,183 15,183 - 15,183 9,089 205,174 205,174 183,783 21,391 163,075 (6,954) (6,954) 18,304 25,258 37,313 (8,590) (8,590) (8,590) - (5,914) ($15,544) ($15,544) 9,714 $25,258 31,399 102,590 $112,304 71,191 $102,590 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY - Statement 36 RENTAL HOUSING -SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 , With Comparative Actual Amounts For the Year Ended December 31, 2002 2003 Revenues: Rents Investment income: Interest and dividends Change in fair value Other revenue: Miscellaneous Total revenues Expenditures: Supplies Other services and charges Capital outlay Total expenditures Revenues over (under) expenditures Other financing sources (uses): Sale of land Transfers in Total other financing sources (uses) Net change in fund balance Fund balance -beginning Fund balance -ending 39,057 31,130 ' $53,424 $39,057 Budgeted Amounts Original Final $18,240 $18,240 Variance with Final Budget- 2002 Actual Positive Actual ' Amounts (Negative) Amounts $18,309 $69 $16,450 _ _ 1,888 1,888 2,545 _ _ (905) (905) 625 , _ _ 1,218 1,218 195 18,240 18,240 20,510 2,270 19,815 , 2,465 2,465 189 2,276 580 10,844 10,844 164,698 (153,854) 11,308 4,000 4,000 - 4,000 - 17,309 17,309 164,887 (147,578) 11,888 144 377) (145 308) 927 7 931 931 , ( , , _ _ 150,421 150,421 - ' _ _ 8,323 8,323 - 0 0 158,744 158,744 0 $931 $931 14,367 $13,436 7,927 132 t CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS -ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) COMBINING BALANCE SHEET December 31, 2003 With Comparative Totals For December 31, 2002 Statement 37 Assets Cash and investments Receivables: Taxes Interest Loans Real estate held for resale Total assets Liabilities and Fund Balance Liabilities: Accounts payable Accrued salaries and withholdings payable Deferred revenue Total liabilities Fund balance: Reserved for real estate held for resale Reserved for program expenditures Unreserved: Undesignated Total fund balance Total liabilities and fund balance Economic Business Development Revolving Totals Authority Loan Economic Development Authority Administration Fund 2003 2002 $88,043 $327,260 $415,303 $395,911 5,240 4,163 9,403 3,703 654 2,662 3,316 6,662 - 6,545 6,545 10,433 - 21,113 21,113 21,113 $93,937 $361,743 $455,680 $437,822 $250 $ - $250 $2,377 549 - 549 250 2,459 8,488 10,947 12,729 3,258 8,488 11,746 15,356 - 21,113 21,113 21,113 - 306,426 306,426 306,428 90,679 25,716 116,395 94,925 90,679 353,255 443,934 422,466 $93,937 $361,743 $455,680 $437,822 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS -ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 38 COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Economic Business Totals Development Revolving Economic Development Authority Loan Authority Revenues: Taxes Intergovernmental Fees/program revenues Investment income: Interest and dividends Change in fair value Other revenues: Miscellaneous Total revenues Expenditures: Personal services Supplies Other services and charges Loans and grants Total expenditures Revenues over 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 umstration Fund Section 8 2003 2002 $121,895 $97,076 $ - $218,971 $218,075 - 12,460 - 12,460 238,125 - 20,781 - 20,781 12,542 2,999 12,205 - 15,204 31,438 (1,437) (5,847) - (7,284) 7,726 123,457 136,675 - - 4,210 0 260,132 512,116 77,659 - - 77,659 53,107 1,030 - - 1,030 5,457 36,873 - - 36,873 40,726 _ _ _ - 209,650 115,562 0 0 115,562 308,940 7,895 136,675 0 144,570 203,176 - - - - 127,377 (11,454) (111,648) - (123,102) (490,463) (11,454) (111,648) 0 (123,102) (363,086) (3,559) 25,027 0 21,468 (159,910) 94,238 328,228 - 422,466 582,376 $90,679 $353,255 $0 $443,934 $422,466 134 r CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -ECONOMIC DEVELOPMENT AU THORITY - Statement 39 ' EDA ADMINISTRATION -SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 With Comparative Totals For the Year Ended Decemb er 31, 2002 2003 1 Variance with Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts Revenues: Taxes $140,569 $140,569 $121,895 ($18,674) $119,834 Intergovernmental - - - - 209,650 Investment income: Interest and dividends - - 2,999 2,999 6,715 Change in fair value - - (1,437) (1,437) 1,650 ' Other revenues: Miscellaneous - - - - 4,210 Total revenues 140,569 140,569 123,457 (17,112) 342,059 Expenditures: Personal services 72,999 72,999 77,659 (4,660) 53,107 ' Supplies 2,770 2,770 1,030 1,740 5,457 Other services and charges 53,346 53,346 36,873 16,473 40,714 Loans and grants - - - - 209,650 Total expenditures 129,115 129,115 115,562 13,553 308,928 Revenues over (under) expenditures 11,454 11,454 7,895 (3,559) 33,131 f~ Other financing sources (uses): Transfers in - - - - 17,500 Transfers out (11,454) (11,454) (11,454) - (107,884) Total other fmancing sources (uses) (11,454) (11,454) (11,454) 0 (90,384) Net change in fund balance $0 $0 (3,559) ($3,559) (57,253) Fund balance -beginning Fund balance -ending 94,238 $90,679 151,491 $94,238 ' 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -ECONOMIC DEVELOPMENT AUTHORITY Statement 40 ' BUSINESS REVOLVING LOAN FUND -SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL For The Year Ended December 31, 2003 ' With Comparative Totals For the Year Ended December 31, 2002 Revenues: Taxes Intergovernmental Fees/program revenues Investment income: Interest and dividends Change in fair value Total revenues Expenditures: Other services and charges 2003 Variance with ' Budgeted Amounts Final Budget- 2002 Actual Positive Actual Original Final Amounts (Negative) Amounts ' $111,648 $111,648 $97,076 ($14,572) $98,241 - - 12,460 12,460 12,944 - - 20,781 20,781 12,542 - - 12,205 12,205 24,723 - - (5,847) (5,847) 6,076 ' 111,648 111,648 136,675 25,027 154,526 ,~ Revenues over expenditures 111,648 111,648 136,675 25,027 154,514 Other financing sources (uses): Transfers in - - - - 24,000 Transfers out (111,648) (111,648) (111,648) - (382,579) ' Total other financing sources (uses) (111,648) (111,648) (111,648) 0 (358,579) Net change in fund balance $0 $0 25,027 $25,027 (204,065) Fund balance -beginning Fund balance -ending 328,228 $353,255 532,293 $328,228 136 , 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND -ECONOMIC DEVELOPMENT AUTHORITY - Statement 41 SECTION 8 HOUSING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2003 With Comparative Totals For the Year Ended December 31, 2002 Revenues: Intergovernmental Investment income: Interest Change in fair value Total revenues Expenditures: Personal services Supplies Total expenditures Revenues over expenditures Other financing sources (uses): Transfers in Net change in fund balance 2003 2002 $ - $15,531 0 15,531 0 0 0 15,531 - 85,877 0 101,408 Fund balance (deficit) -beginning Fund balance -ending 137 - (101,408) $0 $0 u 1 - This page intentionally left blank - r 138 f i! ' NONMAJOR DEBT SERVICE FUNDS i f 1 mbia Hei hts had the followin Debt Service Funds durin the ear: The C ty o Co u g g g y ~j Tax Increment Bond Funds -are separate funds used to account for each separate Tax Increment Bond Issue revenues and expenditures. These bonds are repaid primarily from tax increments. ' Special Assessment Improvement Bonds -are repaid primarily from special assessments. 1 fl 139 i 1 - This page intentionally left blank - , [l it 140 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 42 NONMAJOR DEBT SERVICE FUNDS December 31, 2003 With Comparative Totals For December 31, 2002 G.O. Tax Multi-Use G.O. Improvement/ Totals Increment Redevelopment Improvement Revenue Nonmajor Debt Service Funds Bonds Plan 1999A 2003A 2003 2002 Assets Cash and investments $168,494 $ - $628,441 $ - $796,935 $1,162,995 Receivables: Taxes: Unremitted 41,581 12 - - 41,593 2,591 Delinquent 13,665 - - - 13,665 10,012 Interest 3,462 - 5,155 - 8,617 22,067 Interfund receivable 45,015 - - - 45,015 52,572 Total assets $272,217 $12 $633,596 $0 $905,825 $1,250,237 Liabilities and Fund Balance Liabilities: Accounts payable $ - $5,046 $ - $434 $5,480 $ - Due to other governmental units - - - - - 7 Interfund payable - 41,388 - 3,626 45,014 52,572 Deferred revenue: Property taxes -delinquent 13,665 - - - 13,665 10,012 Total liabilities 13,665 46,434 0 4,060 64,159 62,591 Fund balance: Unreserved: Designated for debt service 258,552 - 633,596 - 892,148 1,240,225 Undesignated - (46,422) - (4,060) (50,482) (52,579) Total fund balance 258,552 (46,422) 633,596 (4,060) 841,666 1,187,646 Total liabilities and fund balance $272,217 $12 $633,596 $0 $905,825 $1,250,237 141 r CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINIIVG SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Capital Tax Appreciation ' Increment Bonds Bonds of 1990 Revenues: , Tax increment collections $564,061 $ - Intergovernmental 86,006 - Investment income: Interest and dividends 15,871 - Change in fair value (7,604) - Total revenues 658,334 0 Expenditures: Debt service: Principal retirement - 377,918 Interest and fiscal charges - 542,832 Miscellaneous 14,903 - Total expenditures 14,903 920,750 ' Revenues over (under) expenditures 643,431 (920,750) Other financing sources (uses): ' Transfers in - 920,750 Transfers out sources (uses) Total other financin (920,750) (920 750) - 920 750 ' g , , Net change in fund balance (277,319) - Fund balance (deficit) -beginning 535,871 - Fund balance (deficit) -ending $258,552 $0 , r 142 1 Statement 43 Tax Increment Multi-Use G.O. G.O. Improvement/ Totals Refunding Redevelopment Improvement Revenue Nonmajor Debt Service Funds Bonds of 1991 Plan 1999A 2003A 2003 2002 $ - $19,900 $ - $ - $583,961 $627,090 - 373 - - 86,379 84,919 - - 23,634 - 39,505 104,135 - - (11,324) - (18,928) 25,592 0 20,273 12,310 0 690,917 841,736 - - 100,000 - 477,918 716,515 26,681 569,513 530,985 - 14,116 - 4,060 33,079 30,237 0 14,116 126,681 4,060 1,080,510 1,277,737 0 6,157 (114,371) (4,060) (389,593) (436,001) r - - 43,613 - 964,363 1,182,851 - - - - (920,750) (1,112,130) 0 0 43,613 0 43,613 70,721 - 6,157 (70,758) (4,060) (345,980) (365,280) - (52,579) 704,354 0 1,187,646 1,552,926 $0 ($46,422) $633,596 ($4,060) $841,666 $1,187,646 143 ~~ fl -This page intentionally left blank - 1 144 t NONMAJOR CAPITAL PROJECT FUNDS The City of Columbia Heights had the following Capital Project Funds during the year: Capital Improvement Fund 390 & 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 Parking. Capital Sheffield Redevelopment Fund 410 -used to fund redevelopment of the area of the City identified as Sheffield Neighborhood. Capital Improvement Parks Fund 412 -used to account for improvements in City parks. Ca ital Im rovement PVVS Fund 414 -used to account for im rovements to Parkview Villa p P p South building. Capital Improvement Development Fund 420 -used to account for improvements to various development areas within the City. Infrastructure Replacement Fund 430 -used to fund replacement of City infrastructure. Capital Equipment Fire Fund 439 -used to fund replacement of fire capital assets. Capital Equipment Cable TV Fund 440 -used to fund replacement of cable capital assets. i 1 Buildin Libra Fund 450 -used to fund re lacement of the libr buildin . Cap to gry p ary g TIF District #2 Fund 407 -used to account for revenues and expenditures located within the Tax Increment Financing District #2. TIF Medtronics Fund 378 -used to account for revenues and expenditures located within the Medtronics Tax Increment Financing District. TIF Scattered Site Fund 379 -used to account for revenues and expenditures located within the Scatter Site Tax Increment Financing District. TIF Transition Block Fund 389 -used to account for revenues and expenditures located within the Transition Block Tax Increment Financing District. 145 L~ 1 - This page intentionally left blank - t n 1 146 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 44 NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2 December 31, 2003 With Comparative Totals For December 31, 2002 Downtown Capital Capital Capital Parking Sheffield Improvement Improvement Maintenance Redevelopment Parks 390 & 401 Funds 290 & 405 Fund 410 Fund 412 Assets Cash and investments $684,354 $733,865 $483,133 $926,982 Receivables: Special assessments: Unremitted - - - - ~' Interest 4,860 6,443 - 7,485 Due from other governmental units - - - - Interfund receivable Real estate held for resale = = Total assets $689,214 $740,308 $483,133 $934,467 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ $8,662 Accrued salaries and withholdings payable 141 - - - Contracts payable -retained percentage 2,980 = = _ Due to other governmental units Interfund payable 25,807 - - - Deposits - - - - Total liabilities 28,928 0 0 8,662 Fund balance: Reserved for real estate held for resale - - - - Unreserved: Designated for capital improvement 660,286 740,308 483,133 233,723 Undesignated - - - 692,082 Total fund balance 660,286 740,308 483,133 925,805 Total liabilities and fund balance $689,214 $740,308 $483,133 $934,467 147 CITY OF COLUMBIA HEIGHTS, MINNESO TA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS ' December 31, 2003 With Comparative Totals For December 31, 2002 Capital Capital Capital Capital Improvement Improvement Infrastructure Equipment Equipment PVVS Development Replacement Fire Cable TV Fund 414 Fund 420 Fund 430 Fund 439 Fund 440 Assets Cash and investments $758,879 $499,308 $169,154 $657,037 $264,149 Receivables: Special assessments: Unremitted Interest - 6,446 - 4,965 - 3,552 - 5,830 - 2,649 Due from other governmental units - 145,000 - - - Interfund receivable - - - - 39,528 Real estate held for resale - 160,800 - - - , Total assets $765,325 $810,073 $172,706 $662,867 $306,326 Li bili i d F d B l a t es an un a ance Liabilities: Accounts payable $ - $56,995 $ - $7,385 $ - Accrued salaries and withholdings payable - - - - - Contracts payable -retained percentage - - - - - Due to other governmental units - 98,000 - - - Interfund payable - - - - - Deposits - 30,500 - - - Totalliabilities 0 185 495 0 7 385 0 , , Fund balance: Reserved for real estate held for resale - 160,800 - - - Unreserved: Designated for capital improvement 765,325 463,778 172,706 655,482 306,326 Undesignated - - - - - Total fund balance 765,325 624,578 172,706 655,482 306,326 Total liabilities and fund balance $765,325 $810,073 $172,706 $662,867 $306,326 148 Statement 44 Page 2 of 2 Capital Building TIF TIF TIF TIF Totals Library District #2 Medtronics Scattered Site Transition Block Nonmajor Capital Project Funds Fund 450 Fund 407 Fund 378 Fund 379 Fund 389 2003 2002 $200,000 $ - $247,036 $897 $12,063 $5,636,857 $5,701,833 = = - 2,731 - 2,731 205 1,847 55 46 44,178 34,366 _ _ _ _ _ 145,000 3,039 _ _ _ _ - 39,528 157,564 _ _ _ _ - 160,800 - $200,000 $0 $248,883 $3,683 $12,109 $6,029,094 $5,897,007 $ - $ - $48,506 $ - $8,095 $129,643 $62,371 _ _ _ _ _ 141 - = _ _ _ - 2,980 1,000 98,000 - 2,243 - 18,801 - 46,851 37,243 _ _ _ _ - 30,500 - ~' 0 2,243 48,506 18,801 8,095 308,115 100,614 _ _ _ _ - 160,800 - 200,000 - - - - 4,681,067 5,148,402 - (2,243) 200,377 (15,118) 4,014 879,112 647,991 200,000 (2,243) 200,377 (15,118) 4,014 5,720,979 5,796,393 $200,000 $0 $248,883 $3,683 $12,109 $6,029,094 $5,897,007 149 a -This page intentionally left blank - 1 150 , CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Statement 45 Page 1 of 2 Downtown Capital Capital Capital Parking Sheffield Improvement Improvement Maintenance Redevelopment Parks Funds 390 & 401 Funds 290 & 405 Fund 410 Fund 412 Revenues: Tax increment collections $ - $ - $ - $ - Intergovernmental - - - - Investment income: Interest and dividends 22,280 29,538 - 34,311 Change in fair value (10,675) (14,152) - (16,439) Other revenues: Miscellaneous 185,824 - - 8,995 Project reimbursement - - - 4,400 Total revenues 197,429 15,386 0 31,267 Expenditures: Developer incentives = _ _ = Contractual services Repair and maintenance - 7,370 - 5,742 Capital outlay 66,642 - - 20,549 Total expenditures 66,642 7,370 0 26,291 Revenue over (under) expenditures 130,787 8,016 0 4,976 Other financing sources (uses): Sale of land Transfers in 117,278 50,000 Transfers out - - - Total other financing sources (uses) 0 0 0 167,278 016 8 0 254 172 Net change in fund balance 130,787 , , Fund balance (deficit) -beginning 529,499 732,292 483,133 753,551 Fund balance (deficit) -ending $660,286 $740,308 $483,133 $925,805 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended De cember 31, 2002 Capital Capital Capital Capital Improvement Improvement Infrastructure Equipment Equipment PWS Development Replacement Fire Cable TV Fund 414 Fund 420 Fund 430 Fund 439 Fund 440 Revenues: Tax increment collections $ - $ - $ - $ - $ - Intergovernmental - 145,000 - - - Investment income: Interest and dividends 29,550 22,760 16,286 26,728 12,144 Change in fair value (14,158) (10,905) (7,803) (12,806) (5,818) Other revenues: Miscellaneous - 12,780 - - - Project reimbursement - - - - - Total revenues 15 392 169 635 483 8 922 13 326 6 , , , , , Expenditures: Developer incentives - - - - - Contractual services - 469,503 1,629 - - Repair and maintenance - - - 8,125 - Capital outlay - - - 13,793 - Total expenditures 0 469,503 1,629 21,918 0 Revenue over (under) expenditures 15,392 (299,868) 6,854 (7,996) 6,326 Other financing sources (uses): Sale of land Transfers in - - - 50,000 - 50,000 = - _ - Transfers out - (8,323) (261,591) Total other financing sources (uses) 0 41,677 (211,591) 0 0 N h i f d b l 204 3 996 326 6 et c ange n un a ance 15,392 (258,191) ,7 ( 7) ) (7, , Fund balance (deficit) -beginning 749,933 882,769 377,443 663,478 300,000 Fund balance (deficit) -ending $765,325 $624,578 $172,706 $655,482 $306,326 152 ' Statement 45 Page 2 of 2 Capital Building TIF TIF TIF TIF Totals Library District #2 Medtronic Scattered Site Transition Block Nonmajor Capital Project Funds Fund 450 Fund 407 Fund 378 Fund 379 Fund 389 2003 2002 $ - $ - $121,108 $17,220 $20,209 $158,537 $133,434 - - - 3,235 - 148,235 6,935 - - 8,467 253 211 202,528 162,176 - - (4,057) (121) (101) (97,035) 39,856 _ _ _ _ - 207,599 18,750 _ _ _ _ - 4,400 6,813 0 0 125,518 20,587 20,319 624,264 367,964 - - 85,211 - - 85,211 104,258 - - 62 2,102 700 473,996 38,064 _ _ _ _ 15,614 36,851 28,821 _ _ _ _ - 100,984 97,201 0 0 85,273 2,102 16,314 697,042 268,344 0 0 40,245 18,485 4,005 (72,778) 99,620 _ _ _ _ - 117,278 - _ _ _ _ - 150,000 2,030,225 _ _ _ _ - (269,914) (220,485) 0 0 0 0 0 (2,636) 1,809,740 0 0 40,245 18,485 4,005 (75,414) 1,909,360 200,000 (2,243) 160,132 (33,603) 9 5,796,393 3,887,033 $200,000 ($2,243) $200,377 ($15,118) $4,014 $5,720,979 $5,796,393 153 -This page intentionally left blank - ' A 1 154 a 1 ENTERPRISE FUNDS The authority for these types of funds is derived from Section 69(b) of the City Charter which allows for Utility or other Public Service Enterprise Funds. The Enterprise Funds are members of the Proprietary Fund Type category, and, as such, are ~. accounted for on the accrual basis of accounting. Revenues in the Enterprise Funds are recognized when they are earned and expenses are recognized when they are incurred. The Enterprise Funds are used to account for operations that are either financed and operated in a manner similar to private business enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Water Utility Fund -used to account for revenues and expenses associated with services to area residents. Sewer Utilit,~Fund -used to account for revenues and expenses associated with sewer disposal within the City. Refuse Utilit~und -used to account for revenues and expenses associated with organized collection of refuse and recycling in the City. Storm Sewer Utility Fund -used to account for revenues and expenses associated with storm water disposal. Liquor Fund -used to account for revenues and expenses associated with the operation of three off-sale liquor stores. f 155 e CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Statement 46 Capital Equipment Capital Operating Replacement Construction Debt Account Account Account Service Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectables) Interest Due from other governmental units Interfund receivable Inventory - at cost Total current assets Noncurrent assets: Capital assets: Land Buildings Improvements other than buildings Office furniture and fixtures Machinery and equipment Total capital assets Less: Accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable 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 liablilities: 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 $5,807 $ - $ - $ - Totals 2003 2002 $5,807 $39,923 351,176 - - - 351,176 283,783 - 2,982 - 2,211 5,193 6,668 - - - - - 1,160 - 354,270 - 313,756 668,026 678,675 3,299 - - - 3,299 2,864 360,282 357,252 0 315,967 1,033,501 1,013,073 45,223 - - - 45,223 45,223 447,305 6,315,282 - - - - - - 447,305 6,315,282 447,305 5,550,711 25,259 - - - 25,259 25,259 206,972 - - - 206,972 206,972 7,040,041 0 0 0 7,040,041 6,275,470 (2,469,559) - - - (2,469,559) (2,291,954) 4,570,482 0 0 0 4,570,482 3,983,516 4,570,482 0 0 0 4,570,482 3,983,516 4,930,764 357,252 0 315,967 5,603,983 4,996,589 6,462 - - - 6,462 3,702 4,669 - - - 4,669 3,044 95,801 - - - 95,801 256,999 529,586 - 444,299 - 973,885 678,675 - - - 30,242 30,242 14,420 3,744 - - - 3,744 3,744 326 - - - 326 385 - - - 149,145 149,145 94,032 640,588 0 444,299 179,387 1,264,274 1,055,001 13,071 - - - 13,071 12,791 - - - 1,629,845 1,629,845 767,988 13,071 0 0 1,629,845 1,642,916 780,779 653,659 0 444,299 1,809,232 2,907,190 1,835,780 4,570,482 - - (1,778,990) 2,791,492 3,121,496 - - - 285,725 285,725 280,658 (293,377) 357,252 (444,299) - (380,424) (241,345) $4,277,105 $357,252 ($444,299) ($1,493,265) $2,696,793 $3,160,809 156 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' WATER UTILITY FUND SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES Statement 47 IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Capital Equipment Capital Operating Replacement Construction Debt Totals Account Account Account Service 2003 2002 Operating revenues: Charges for services: Customer services $38,923 $ - $ - $ - $38,923 $32,117 Penalties 32,663 - - - 32,663 32,774 Charges for sales: ~. Water 1,398,233 - - - 1,398,233 1,252,015 Meter 9,953 - - 68,139 78,092 74,706 Total operating revenues 1,479,772 0 0 68,139 1,547,911 1,391,612 Operating expenses: Cost of sales and services 1,180,726 - - - 1,180,726 910,316 Distribution 472,396 - - - 472,396 471,116 Administration 10,265 10,265 8,426 Depreciation 177,604 - - - 177,604 161,970 Total operating expenses 1,840,991 0 0 0 1,840,991 1,551,828 i 219 361 0 0 139 68 (293 080) (160 216) Net income (loss) from operat ons , ) ( , , , Nonoperating revenues (expenses): Investment income: Interest and dividends - 13,668 - 10,137 23,805 31,467 Change in fair value - (6,548) - (4,857) (11,405) 7,733 Miscellaneous revenues 594 - - - 594 57 Interest and fiscal charges (48,625) (48,625) (35,152) Miscellaneous expenses - - - (12,391) (12,391) - Total nonoperating revenues (expenses) 594 7,120 0 (55,736) (48,022) 4,105 Net income (loss) before transfers (360,625) 7,120 0 12,403 (341,102) (156,111) Transfers in 764,571 25,000 998,947 74,641 1,863,159 309,358 Transfers out (222,555) (764,571) (998,947) (1,986,073) (428,724) Total transfers 542,016 25,000 234,376 (924,306) (122,914) (119,366) Change in net assets 181,391 32,120 234,376 (911,903) (464,016) (275,477) Total net assets -beginning, as previously stated 4,095,714 325,132 (678,675) (581,362) 3,160,809 3,475,253 Change in accounting principle - - - - (38,967) Total net assets -beginning, as restated 4,095,714 325,132 (678,675) (581,362) 3,160,809 3,436,286 Total net assets -ending $4,277,105 $357,252 ($444,299) ($1,493,265) $2,696,793 $3,160,809 157 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Statement 48 ' ~nn~ ?nm Cash flows from operating activities: Cash received from customers $1,492,327 $1,203,867 Cash paid to suppliers for goods and services (1,297,919) (847,327) Cash payments to employees for services Miscellaneous revenues (227,285) 594 (248,047) 57 Miscellaneous expenses (12,391) Net cash flows from operating activities (44,674) 108,550 Cash flows from noncapital financing activities: Transfers in 1,863,159 309,358 Transfers out (1,986,073) (428,724) Net cash flows from noncapital financing activities (122,914) (119,366) Cash flows from capital and related financing activities: Acquisition of capital assets (764,570) (209,717) Disposition of capital assets - 21,376 Proceeds from sale of bonds 1,011,008 Principal payments -bonds (94,038) (91,426) Interest and fiscal charges (32,803) (36,473) Net cash flows from capital and related financing activities 119,597 (316,240) Cash flows from investing activities: Investment income: - Interest and dividends 25,280 36,456 ~ Change in fair value (11,405) 7,733 Net cash flows from investing activities 13,875 44,189 Net increase (decrease) in cash and cash equivalents (34,116) (282,867) Cash and cash equivalents -January 1 39,923 322,790 Cash and cash equivalents -December 31 $5,807 $39,923 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) ($293,080) ($160,216) ~' Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues 594 57 Miscellaneous expenses (12,391) Depreciation expense 177,604 161,970 Changes in assets and liabilities: (Increase) decrease in accounts receivable (67,393) 1,755 (Increase) decrease in due from other governmental units 1,160 (1,160) (Increase) decrease in interfund receivables 10,649 (188,340) (Increase) decrease in inventory, at cost (435) 1,844 Increase (decrease) in accounts payable 2,760 1,053 Increase (decrease) in accrued salaries and withholdings payable 1,625 (11,209) Increase (decrease) in due to other governmental units (161,198) 101,280 Increase (decrease) in interfund payables 295,210 188,340 Increase (decrease) in compensated absences payable Total adjustments 221 248,406 13,176 268,766 Net cash flows from operating activities ($44,674) $108,550 158 f CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 49 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Capital Equipment Capital Operating Replacement Construction Debt Totals Account Account Account Service 2003 2002 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 Improvements other than buildings Office furniture and fixtures Machinery and equipment 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 Accrued interest payable Compensated absences payable -current Bonds payable -current Total current liabilities $1,411,842 $304,056 $282,895 $4,919 $2,003,712 $2,679,905 245,266 - - - 245,266 263,948 12,105 3,940 8,258 24 24,327 29,389 5,169 - - - 5,169 - - 162,693 795,721 - 958,414 623,404 57,269 - - - 57,269 - 1,731,651 470,689 1,086,874 4,943 3,294,157 3,596,646 178,368 - - - 178,368 200,083 36,586 - - - 36,586 36,586 45,201 - - - 45,201 45,201 4,576,886 - - - 4,576,886 4,153,263 40,964 - - - 40,964 40,964 418,383 - - - 418,383 418,383 - - 405 - 405 5 5,118,020 0 405 0 5,118,425 4,694,402 (2,816,337) - - - (2,816,337) (2,678,294) 2,301,683 0 405 0 2,302,088 2,016,108 2,480,051 0 405 0 2,480,456 2,216,191 4,211,702 470,689 1,087,279 4,943 5,774,613 5,812,837 7,311 - 5,187 - 12,498 4,763 2,179 - - - 2,179 2,734 - - - 493 493 547 326 - - - 326 385 - - - 3,667 3,667 3,568 9,816 0 5,187 4,160 19,163 11,997 Noncurrent liabilities: Compensated absences payable -noncurrent 13,071 - 13,071 12,791 Bonds payable -noncurrent - - 25,469 25,469 29,136 Total noncurrent liabilities 13,071 0 0 25,469 38,540 41,927 Total liabilities 22,887 0 5,187 29,629 57,703 53,924 Net Assets Invested in capital assets, net of related debt 2,301,682 - _ (29,136) 2,272,546 1,983,399 Restricted for debt service 4,450 4,450 4,164 Unrestricted 1,887,133 470,689 1,082,092 - 3,439,914 3,771,350 Total net assets 4,188,815 470,689 1,082,092 (24,686) 5,716,910 5,758,913 I 159 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 50 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Capital Equipment Capital Operating Replacement Construction Debt Totals Account Account Account Service 2003 2002 Operating revenues: Charges for sales and services: Sewer service charges $1,201,655 $ - $ - $ - $1,201,655 $1,204,112 '~ Operating expenses: Cost of sales and services 723,970 - - - 723,970 669,354 Distribution 326,101 - 19,798 - 345,899 271,038 Administration 10,813 - - - 10,813 10,288 Depreciation 138,043 - - - 138,043 130,073 Total operating expenses 1,198,927 0 19,798 0 1,218,725 1,080,753 Net income (loss) from operations 2,728 0 (19,798) 0 (17,070) 123,359 Nonoperating revenues (expenses) Investment income: Interest and dividends 55,495 18,066 37,857 109 111,527 138,688 Change in fair value (26,589) (8,656) (18,138) (52) (53,435) 34,083 Intergovernmental 1,865 - - - 1,865 198 Miscellaneous revenues 23,856 - 15,371 - 39,227 16,824 Interest and fiscal charges - - - (1,203) (1,203) (1,333) Miscellaneous expenses - - - - - - Total nonoperating revenues (expenses) 54,627 9,410 35,090 (1,146) 97,981 188,460 Net income (loss) before transfers 57,355 9,410 15,292 (1,146) 80,911 311,819 Transfers in 425,629 30,000 - 5,000 460,629 250,965 Transfers out (157,914) - (425,629) - (583,543) (360,329) Total transfers 267,715 30,000 (425,629) 5,000 (122,914) (109,364) Change in net assets 325,070 39,410 (410,337) 3,854 (42,003) 202,455 Net assets -beginning, as previously stated 3,863,745 431,279 1,492,429 (28,540) 5,758,913 5,589,809 Change in accounting principle - - - - (33,351) Net assets beginning, as restated 3,863,745 431,279 1,492,429 (28,540) 5,758,913 5,556,458 = Net assets ending $4,188,815 $470,689 $1,082,092 ($24,686) $5,716,910 $5,758,913 160 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 51 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of capital assets Principal payments -bonds Interest and fiscal charges Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activit Net increase (decrease) in cash and c Cash and cash equivalents -January Cash and cash equivalents - Decemb r Reconciliation of operating income (loss) to ~l net cash flows from operating activities ies ash equivalents 1 er 31 1 Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in interfund receivables (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease)compensated absences payable Total adjustments Net cash flows from operating activities 2003 $901,873 (938,999) (191,551) 41,092 (187,585) 460,629 (583,543) (122,914) (424,023) (3,568) (1,257) (428,848) 116,589 (53,435) 63,154 (676,193) 2,679,905 $2,003,712 2002 $1,169,406 (785,058) (158,940) 17,022 242,430 250,965 (360,329) (109,364) (209,516) (3,469) (1,383) (214,368) 138,398 34,083 172,481 91,179 2,588,726 $2,679,905 ($17,070) $123,359 41,092 138,043 17,022 130,073 18,682 16,546 (335,010) (57,269) 7,735 (555) 221 (170,515) ($187,585) 8,257 28,878 (71,841) 3,986 (10,480) 13,176 119,071 $242,430 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 52 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 2003 2002 Assets Current assets: Cash and cash equivalents $357,894 $605,231 Receivables: Accounts (net of allowance for uncollectibles) 278,412 280,375 Interest 4,060 6,772 Due from other governmental units - 20,382 Total current assets 640,366 912,760 Noncurrent assets: Capital assets: Buildings Improvements other than buildings 6,000 11,566 6,000 11,566 Machinery and equipment 97,124 97,124 Total capital assets 114,690 114,690 Less: Accumulated depreciation (52,130) (40,961) Total capital assets (net of accumulated depreciation) 62,560 73,729 Total noncurrent assets 62,560 73,729 T t l t 702 926 986 489 o a asse s , , Liabilities Current liabilities: Accounts payable 104,454 208,101 Net assets `~ Invested in capital assets, net of related debt 62,560 73,729 ~ Unrestricted 535,912 704,659 l 472 $598 388 $778 Tota net assets , , 162 CITY OF COLUMBIA HEIGHTS MINNESOTA REFUSE UTILITY FUND Statement 53 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 ' With Comparative Totals For The Year Ended December 31, 2002 1 1 1 1 1 1 1 1 Operating revenues: Refuse service charges Operating expenses: Cost of sales and services Administration Recycling Hazardous waste Depreciation Total operating expenses Net income (loss) from operations Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Intergovernmental Miscellaneous revenues Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers out Change in net assets Total net assets -beginning, as previously stated Change in accounting principle Total net assets -beginning, as restated Total net assets -ending 163 2003 $1,246,660 1,256,930 15,842 13,504 4,119 11,169 1,301,564 (54,904) 18,613 (8,918) 53,411 1,686 64,792 9,888 (189,804) (179,916) 778,388 778,388 $598,472 2002 $1,247,692 1,251,827 12,964 12,712 1,959 11,169 1,290,631 (42,939) 31,956 7,854 53,780 1,290 94, 880 51,941 (177,552) (125,611) 905,521 (1,522) 903,999 $778,388 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 54 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities 2003 2002 $1,248,343 (1,172,974) ' (581) 55,070 Cash flows from noncapital financing activities: Transfers out Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents -January 1 Cash and cash equivalents -December 31 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units Increase (decrease) in accounts payable Total adjustments Net cash flows from operating activities $1,269,005 (1,393,273) (769) 55,097 (69,940) 129,858 ' (189,804) (177,ss2) 21,325 (8,918) 12,407 (247,337) 605,231 $357,894 ($54,904) 55,097 11,169 1,963 20,382 (103,647) (15,036) ($69,940) 34,946 610,125 ' $605,231 7,854 42, 800 (4,894) ($42,939) ' ( 105,907 172,797 ' $129,858 55,070 ' 11,169 3,271 ' 2,620) 164 ' C I CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Statement 55 Capital Equipment Capital Operating Replacement Construction Debt Account Account Account Service Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectibles) Interest Due from other governmental units Total current assets Totals 2003 2002 $ - $18,338 $77,901 $ - $96,239 $107,676 49,036 - - - 49,036 36,237 - 135 1,951 - 2,086 1,675 - - - - - 14,955 49,036 18,473 79,852 0 147,361 160,543 Noncurrent assets: Capital assets: ' Land 254,724 254,724 254,724 Improvements other than buildings 1,030,067 - - - 1,030,067 774,028 Construction in process 5,473 - 117,701 - 123,174 37,901 Total capital assets 1,290,264 0 117,701 0 1,407,965 1,066,653 Less: Accumulated depreciation (104,863) (104,863) (53,360) Total capital assets (net of accumulated depreciation) 1,185,401 0 117,701 0 1,303,102 1,013,293 Total noncurrent assets 1,185,401 0 117,701 0 1,303,102 1,013,293 Total assets 1,234,437 18,473 197,553 0 1,450,463 1,173,836 Liabilities Current liabilities: Accounts payable 2 2 169 Accrued salaries and withholdings payable 150 = _ = 150 69 Interfund payable 79,865 - - 82,828 162,693 96,404 Accrued interest payable = _ = 15,755 15,755 12,635 Bonds payable -current 97,983 97,983 82,400 Total current liabilities 80,017 0 0 196,566 276,583 191,677 Noncurrent liabilities: Bonds payable -noncurrent 831,062 831,062 672,876 Total liabilities 80,017 0 0 1,027,628 1,107,645 864,553 ' Net Assets Invested in capital assets, net of related debt 1,179,927 - - (929,045) 250,882 220,116 Unrestricted (25,507) 18;473 197,553 (98,583) 91,936 89,167 Total net assets $1,154,420 $18,473 $197,553 ($1,027,628) $342,818 $309,283 165 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, 2003 With Comparative Totals For The Year Ended December 31, 2002 Statement 56 ' Capital Equipment Capital ' Operating Replacement Construction Debt Totals Account Account Account Service 2003 2002 Operating revenues: , Charges for sales and services: Storm sewer service charges $184,712 $ - $ - $ - $184,712 $172,975 Operating expenses: , Distribution 118,099 - 2,519 - 120,618 97,672 Administration 1,330 - - - 1,330 1,233 Depreciation 51,503 - - - 51,503 33,988 ' Total operating expenses 170,932 0 2,519 0 173,451 132,893 Net income from operations 13,780 0 (2,519) 0 11,261 40,082 ' Nonoperating revenues (expenses): Investment income: ' Interest and dividends - 617 8,947 - 9,564 7,899 Change in fair value - (296) (4,287) - (4,583) 1,941 Intergovernmental - - 52,499 - 52,499 130,339 Interest and fiscal charges - - - (32,066) (32,066) (30,799) , Miscellaneous expenses - - - (3,140) (3,140) - Total nonoperating revenues (expenses) 0 321 57,159 (35,206) 22,274 109,380 Net income (loss) before transfers 13,780 321 54,640 (35,206) 33,535 149,462 Transfers in 254,032 5,800 253,107 125,000 637,939 447,410 Transfers out (130,800) - (254,032) (253,107) (637,939) (457,410) Total transfers 123,232 5,800 (925) (128,107) 0 (10,000) Change in net assets 137,012 6,121 53,715 (163,313) 33,535 139,462 Total net assets -beginning, as previously stated 1,017,408 12,352 143,838 (864,315) 309,283 174,208 Change in accounting principle - - - - - (4,387) Total net assets -beginning, as restated 1,017,408 12,352 143,838 (864,315) 309,283 169,821 ' Total net assets -ending $1,154,420 $18,473 $197,553 ($1,027,628) $342,818 $309,283 ~I 166 ' CITY OF COLUMBIA HEIGHTS MINNESOTA STORM SEWER UTILITY FUND Statement 57 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 ' Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous expenses Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: ' Acquisition of capital assets Proceeds of capital grants and contributions Proceeds from sale of bonds ' Principal payments -bonds Interest and fiscal charges Net cash flows from capital and related financing activities ' Cash flows from investing activities: Investment income: Interest and dividends ' Change in fair value Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents- January 1 2003 $186,868 (7,501) (48,244) (3,140) 127,983 637,939 (637,939) 0 (341,312) 52,499 256,163 (82,394) (28,946) (143,990) 9,153 (4,583) 4,570 (11,437) 107,676 2002 $158,000 20,009 (54,452) 123,557 447,410 (457,410) (10,000) (124,548) ' Cash and cash equivalents -December 31 Reconciliation of operating income (loss) to net cash flows from operating activities ' Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous expenses Depreciation expense ' Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units Increase (decrease) in accounts payable ' Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in interfund payable Total adjustments Net cash flows from operating activities 167 130,339 (80,105) (31,956) (106,270) 12,765 1,941 14,706 21,993 85,683 $96,239 $107,676 $11,261 (3,140) 51,503 $40,082 33,988 (12,799) 14,955 (167) 81 66,289 116,722 $127,983 (20) (14,955) (1,156) 57 65,561 83,475 $123,557 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31 2002 Capital Equipment Operating Replacement Account Account Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectables) Interest Due from other governmental units Prepayments Inventory - at cost Total current assets Statement 58 Totals 2003 2002 $2,019,152 $27,447 $2,046,599 $1,983,131 r 577 - 577 - 16,897 1,865 240 17,137 - 1,865 19,110 2,024 , 5,441 - 5,441 - 1,381,601 - 1,381,601 1,188,663 3,425,533 27,687 3,453,220 3,192,928 ' Noncurrent assets: Capital assets: Land 4,360 Buildings 162,239 Improvements other than buildings 81,198 Office furniture and fixtures 14,791 Machinery and equipment 289,381 Total capital assets 551,969 Less: Accumulated depreciation (496,662) Net capital assets (net of accumulated depreciation) 55,307 Total noncurrent assets 55,307 Total assets Liabilities Current liabilities: Accounts payable Accrued salaries and withholdings payable Due to other governmental units Compensated absences payable -current Total current liabilities Noncurrent liabilities: Compensated absences payable -noncurrent Total liabilities Net Assets Invested in capital assets, net of related debt Unrestricted Total net assets 4,360 4,360 ' - 162,239 162,239 - 81,198 81,198 - 14,791 14,791 ' - 289,381 289,381 0 551,969 - (496,662) 551,969 (484,486) , 0 55,307 67,483 0 55,307 67,483 3,480,840 27,687 3,508,527 3,260,411 312,624 - 312,624 234,286 23,491 - 23,491 10,617 71,459 - 71,459 58,612 ' 918 - 918 883 408,492 0 408,492 304,398 , 36,842 - 36,842 29,352 445,334 0 445,334 333,750 ' 55,308 - 55,308 67,483 2,980,198 27,687 3,007,885 2,859,178 ' $3,035,506 $27,687 $3,063,193 $2,926,661 ' 168 CITY OF COLUMBIA HEIGHTS MINNESOTA ' LIQUOR FUND SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND Statement 59 CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 ' With Comparative Totals For The Year Ended December 31, 2002 Capital Operating Accounts Total Equipment Top Heights Operating Replacement Totals Top Valu Valu II Liquor Accounts Account 2003 2002 i Operating revenues: Charges for sales: Liquor Beer Wine Other Total operating revenues Operating expenses: Cost of goods sold Operating expense Depreciation Total operating expenses $1,004,638 $813,057 $459,917 $2,277,612 $ - $2,277,612 $2,104,766 1,399,774 1,310,857 734,700 3,445,331 - 3,445,331 3,515,947 303,771 347,595 50,633 701,999 - 701,999 686,044 220,896 161,894 126,840 509,630 - 509,630 550,550 2,929,079 2,633,403 1,372,090 6,934,572 0 6,934,572 6,857,307 2,310,095 2,049,060 1,006,982 5,366,137 - 5,366,137 5,254,598 586,724 408,717 228,547 1,223,988 - 1,223,988 1,093,381 1,588 9,735 852 12,175 - 12,175 12,929 2,898,407 2,467,512 1,236,381 6,602,300 0 6,602,300 6,360,908 Net income (loss) from operations $30,672 $165,891 $135,709 Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Miscellaneous revenues Miscellaneous expenses Total nonoperating revenues (expenses) Net income (loss) before transfers Transfer out Change in net assets Net assets -beginning, as previously stated Change in accounting principle Net assets -beginning, as restated Net assets -ending 169 332,272 0 332,272 496,399 77,459 1,098 78,557 90,180 (37,112) (526) (37,638) 22,163 26,344 - 26,344 26,037 (1,022) - (1,022) (3,939) 65,669 572 66,241 134,441 397,941 572 398,513 630,840 (261,981) - (261,981) (217,954) 135,960 572 136,532 412,886 2,899,546 27,115 2,926,661 2,524,335 - - - (10,560) 2,899,546 27,115 2,926,661 2,513,775 $3,035,506 $27,687 $3,063,193 $2,926,661 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Cash flows from operating activities: Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Miscellaneous expenses Net cash flows from operating activities 2003 2002 $7,02S,89S (5,865,191) (671,379) Cash flows from noncapital financing activities: Transfers out Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents -January 1 Cash and cash equivalents -December 31 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Miscellaneous expenses Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in interfund receivables (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease) in accounts payable Increase (decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Increase (decrease) in compensated absences payable Total adjustments Net cash flows from operating activities $6,934,154 (5,924,334) (752,585) 26,344 (1,022) 282,557 (261,981) 80,530 (37,638) 42,892 63,468 1,983,131 26,037 (3,939) , 511,423 (217,954) , 92,306 22,163 114,469 ' 407,938 1,575,193 Statement 60 ' $2,046,599 $1,983,131 $332,272 $496,399 26,344 (1,022) 12,175 (577) 1S9 (5,441) (192,93 8) 78,338 12,875 12, 847 7,S2S (49,71 S) $282,SS7 26,037 (3,939) , 12,929 (412) 169,000 (286,346) ' 106,708 (30,013) (9,175) 30,23 S 15,024 $511,423 ' 170 ' 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 F - to account for the costs of o eratin a maintenance facili for ~ and used p g ty ' automotive equipment used by other City departments. Such costs are billed to other departments at actual cost plus a fixed overhead factor. The automotive equipment itself is acquired by the various user departments which are responsible for financing replacement vehicles as necessary. Data Processin Fund -used to account for the costs associated with data processing within the ' City. All costs are recorded in the fund and allocated to user departments. Insurance Fund -used to account for certain costs of the City's risk management services and to build a reserve for catastrophic losses. All costs for claims and claims administration are recorded in the fund and allocated to user funds based on a percentage risk factor. Insurance premiums are recorded directly m the user funds. ' Compensated Absences Fund -used to account for funds that have been set aside by the City Council for compensated absences. 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Central Data Compensated Garage Processing Insurance Absences Assets Current assets: Cash and cash equivalents Receivables: Accounts (net of allowance for uncollectibles) Interest Due from other governmental units Prepayments Inventory - at cost Total current assets Noncurrent assets: Capital assets: Buildings Improvements other than buildings Machinery and equipment Total capital assets Less: Accumulated depreciation Total capital assets (net of accumulated depreciation) Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Accrued salaries and withholdings payable Compensated absences payable -current Total current liabilities Noncurrent liabilities: Compensated absences payable -noncurrent Total noncurrent liabilities Total liabilities Statement 61 ~ , Totals ' 2003 2002 $185,621 $625,959 $769,819 $594,629 $2,176,028 $1,739,066 ' 2,281 - - - 2,281 2,453 ' 236 244 6,134 - 6,614 5,939 - - - - 15,789 10,853 - - 15,789 10,853 - 12,477 , 50,382 - - - 50,382 66,359 238,520 626,203 802,595 594,629 2,261,947 1,826,294 371,383 119,846 - - - - - - 371,383 119,846 371,383 119,847 , 77,044 26,139 - - 103,183 103,183 568,273 26,139 0 0 594,412 594,413 (444,112) (26,139) - - (470,251) (427,192) ' 124,161 0 0 0 124,161 167,221 124,161 0 0 0 124,161 167,221 , 362,681 626,203 802,595 594,629 2,386,108 1,993,515 8,340 5,955 1,569 - 15,864 24,030 2,227 3,820 - - 6,047 3,316 ' 651 172 - 14,050 14,873 877 11,218 9,947 1,569 14,050 36,784 28,223 26,127 6,901 - 563,921 596,949 576,640 26,127 6,901 0 563,921 596,949 576,640 ' 37,345 16,848 1,569 577,971 633,733 604,863 Net Assets Invested in capital assets, net of related debt 124,162 - - - 124,162 167,221 Unrestricted 201,174 609,355 801,026 16,658 1,628,213 1,221,431 Total net assets $325,336 $609,355 $801,026 $16,658 $1,752,375 $1,388,652 ' 172 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 62 COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Central Data Compensated Totals ' Garage Processing Insurance Absences 2003 2002 Operating revenues: Charges for services: Services to departments $200,013 $ _ $ _ $ _ $200,013 $143,133 Use of space 219,207 219,207 184,762 Insurance allocation - - 572,401 - 572,401 478,373 Recovery of damages - 41=059 41,059 14,029 Charges for sales: = = Sales of gasoline 61,298 61,298 57,543 Total operating revenues 480,518 0 613,460 0 1,093,978 877,840 Operating expenses: Cost of services and space 322,884 189,671 396,937 - 909,492 919,142 ' Claims administration Claims - = 4,406 11,184 = 4,406 11,184 837 32,165 Depreciation 35,657 7,402 43,059 46,224 Total operating expenses 358,541 197,073 412,527 0 968,141 998,368 t Net income (loss) from operations 121,977 (197,073) 200,933 0 125,837 (120,528) Nonoperating revenues (expenses): ' Investment income: Interest and dividends 1,084 1,121 28,121 30,326 28,032 Change in fair value (519) (537) (13,473) - (14,529) 6,888 Miscellaneous revenues 2,589 - - - 2,589 3,022 ' Total nonoperating revenues (expenses) 3,154 584 14,648 0 18,386 37,942 Net income (loss) before transfers 125,131 (196,489) 215,581 0 144,223 (82,586) ' Transfers in 4,000 310,000 - - 314,000 314,000 Transfers out (94,500) - - - (94,500) (340,883) Total transfers (90,500) 310,000 0 0 219,500 (26,883) ' Change in net assets 34,631 113,511 215,581 0 363,723 (109,469) Net assets -beginning, as previously stated 290,705 495,844 585,445 16,658 1,388,652 1,554,356 Change in accounting principle - - - - - (56,235) Net assets -beginning, as restated 290,705 495,844 585,445 16,658 1,388,652 1,498,121 Net assets -ending $325,336 $609,355 $801,026 $16,658 $1,752,375 $1,388,652 173 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Statement 63 Central Data Compensated Garage Processing Insurance Absences Cash flows from operating activities: Cash received from interfund services provided Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of capital assets Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities Net increase (decrease)in cash and cash equivalents Cash and cash equivalents-January 1 Cash and cash equivalents -December 31 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) decrease in prepayments (Increase) decrease in inventory, at cost Increase (decrease)in accounts payable Increase (decrease) in claims payable Increase (decrease)in accrued salaries and withholdings payable Increase (decrease) in compensated absences payable Total adjustments Net cash flows from operating activities Totals 2003 2002 $480,690 $ - $597,671 $30,476 $1,108,837 $915,570 (156,820) (149,226) (58,093) (135,613) (409,334) - - (624,247) - (284,839) (610,471) (276,006) 2,589 - - - 2,589 3,022 177,233 (193,706) 188,337 30,476 202,340 32,115 ' 4,000 310,000 - - 314,000 314,000 (94,500) - - - (94,500) (340,883) (90,500) 310,000 0 0 219,500 (26,883) ' 0 0 0 0 0 0 ' 1,080 1,159 27,412 - 29,651 44,601 (519) (537) (13,473) - (14,529) 6,888 561 622 13,939 0 15,122 51,489 87 294 116 916 202 276 30 476 962 436 721 56 r , , , , , , 98,327 509,043 567,543 564,153 1,739,066 1,682,345 819 629 $594 176 028 $2 066 $1 739 $185,621 $625,959 $769, , , , , , $121,977 ($197,073) $200,933 $ - $125,837 ($120,528) 2,589 - - - 2,589 3,022 35,657 172 7,402 - - - - - 43,059 172 46,224 178 - - (15,789) - (15,789) - 15,977 - 1,624 - - - 1,624 15,977 71,799 (10,249) ' (1,956) (7,779) 1,569 - (8,166) 1,675 834 1,898 - - 2,732 37,696 1,983 1,846 - 30,476 34,305 2,298 55,256 3,367 (12,596) 30,476 76,503 152,643 $177,233 ($193,706) $188,337 $30,476 $202,340 $32,115 ' 174 ' CITY OF COLUMBIA HEIGHTS MINNESOTA CENTRAL GARAGE FUND SUBCOMBINING SCHEDULE OF NET ASSETS Statement 64 December 31, 2003 With Comparative Totals For December 31, 2002 Capital I Equipment Operating Replacement Totals Account Account 2003 2002 Assets Current assets: Cash and cash equivalents $156,509 $29,112 $185,621 $98,327 Receivables: Accounts (net of allowance for uncollectibles) 2,281 - 2,281 2,453 Interest - 236 236 232 Inventory - at cost 50,382 - 50,382 66,359 Total current assets 209,172 29,348 238,520 167,371 Noncurrent assets: Capital assets: Buildings 371,383 371,383 371,383 Improvements other than buildings 119,846 - 119,846 119,847 Machinery and equipment 77,044 - 77,044 77,044 Total capital assets 568,273 0 568,273 568,274 Less: Accumulated depreciation (444,112) - (444,112) (408,455) Total capital assets (net of I accumulated depreciation 124,161 0 124,161 159,819 Total noncurrent assets 124,161 0 124,161 159,819 Total assets 333,333 29,348 362,681 327,190 Liabilities ' Current liabilities: Accounts payable 8,340 8,340 10,296 Accrued salaries and withholdings payable 2,227 - 2,227 1,394 Compensated absences payable -current 651 - 651 724 ' Total current liabilities 11,218 0 11,218 12,414 Noncurrent liabilities: Compensated absences payable -noncurrent 26,127 - 26,127 24,071 Total noncurrent liabilities 26,127 0 26,127 24,071 Total liabilities 37,345 0 37,345 36,485 Net Assets Invested in capital assets, net of related debt 124,162 - 124,162 159,819 Unrestricted 171,826 29,348 201,174 130,886 Total net assets $295,988 $29,348 $325,336 $290,705 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA ' CENTRAL GARAGE FUND Statement 65 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND ' CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Operating revenues: Charges for services: Services to departments Use of space Charges for sales: Sales of gasoline 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 Miscellaneous revenues Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers in Transfers out Total transfers Change in net assets Total net assets -beginning, as previously stated Change in accounting principle Total net assets -beginning, as restated Total net assets -ending Capital Equipment ' Operating Replacement Totals Account Account 2003 2002 $200,013 $ - $200,013 $143,133 219,207 - 219,207 184,762 , 61,298 - 61,298 57,543 480,518 0 480,518 385,438 322,884 322,884 311,400 35,657 35,657 37,511 358,541 0 358,541 348,911 121,977 0 121,977 36,527 ' - 1,084 1,084 1,097 - (519) (519) 269 2,590 - 2,589 3,022 2,590 565 3,154 4,388 124,567 565 125,131 40,915 - 4,000 4,000 4,000 (94,500) - (94,500) (94,500) (94,500) 4,000 (90,500) (90,500) , 30,067 4,565 34,631 (49,585) 265,922 24,783 290,705 360,005 - - (19,715) 265,922 24,783 290,705 340,290 ' $295,989 $29,348 $325,336 $290,705 176 L fl 1 f] CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 66 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Cash flows from operating activities: Cash received from interfund services provided Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenues Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related financing activities: Acquisition of capital assets Net cash flows from capital and related financing activities Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents -January 1 Cash and cash equivalents -December 31 Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Miscellaneous revenues Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory, at cost 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 177 2003 $480,690 (156,820) (149,226) 2,589 177,233 4,000 (94,500) (90,500) 0 1,080 (519) 561 87,294 98,327 $185,621 2002 $385,616 (182,767) (142,590) 3,022 63,281 4,000 (94,500) (90,500) 0 2,674 269 2,943 (24,276) 122,603 $98,327 $121,977 $36,527 2,589 35,657 172 15,977 (1,956) 834 1,983 55,256 $177,233 3,022 37,511 178 (10,249) (5,580) (435) 2,307 26,754 $63,281 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Statement 67 ' Capital Equipment Operating Replacement Totals Account Account 2003 2002 Assets Current assets: Cash and cash equivalents $597,928 $28,031 $625,959 $509,043 Interest receivable Total current assets - 928 597 244 28 275 244 626 203 282 325 509 , , , , Noncurrent assets: Capital assets: Machinery and equipment 26,139 - 26,139 26,139 Total capital assets 26,139 0 26,139 26,139 Less: Accumulated depreciation (26,139) - (26,139) (18,737) Net capital assets (net of accumulated depreciation) 0 0 0 7,402 Total noncurrent assets 0 0 0 7,402 Total assets 597,928 28,275 626,203 516,727 Liabilities Current liabilities: Accounts payable 5,955 - 5,955 13,734 Accrued salaries and withholdings payable 3,820 - 3,820 1,922 ' Compensated absences payable -current 172 - 172 153 Total liabilities 9,947 0 9,947 15,809 ' Noncurrent liabilities: Compensated absences payable -noncurrent 6,901 - 6,901 5,074 Total noncurrent liabilities 6,901 0 6,901 5,074 Total liabilities 16,848 0 16,848 20,883 ' Net Assets Invested in capital assets, net of related debt - - - 7,402 Unrestricted 581,080 28,275 609,355 488,442 Total net assets $581,080 $28,275 $609,355 $495,844 i 1 1 178 CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND Statement 68 CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Capital Equipment Operating Replacement Totals Account Account 2003 2002 Operating revenues $ - $ - $ - $ - Operating expenses: Cost of services 189,671 - 189,671 189,211 Depreciation 7,402 - 7,402 8,713 Total operating expenses 197,073 0 197,073 197,924 Net income (loss) from operations (197,073) 0 (197,073) (197,924) Nonoperating revenues (expenses): Investment income: Interest and dividends 1,121 1,121 1,333 Change in fair value = (537) (537) 327 Total nonoperating revenues (expenses) 0 584 584 1,660 Net income (loss) before transfers (197,073) 584 (196,489) (196,264) Transfers in 310,000 - 310,000 310,000 Change in net assets 112,927 584 113,511 113,736 Net assets -beginning, as previously stated 468,153 27,691 495,844 418,628 Change in accounting principle (36,520) Net assets -beginning, as restated 468,153 27,691 495,844 382,108 Net assets -ending $581,080 $28,275 $609,355 $495,844 179 is CITY OF COLUMBIA HEIGHTS, MINNESOTA DATA PROCESSING FUND SUBCOMBINING SCHEDULE OF CASH FLOWS Statement 69 For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 2003 Cash flows from operating activities: Cash paid to suppliers for goods and services Cash payments to employees for services Net cash flows from operating activities Cash flows from noncapital financing activities: Transfers in 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: 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 ($58,093) (135,613) (193,706) 2002 ($47,970) (133,416) (181,386) 310,000 310,000 1,159 (537) 622 116,916 509,043 $625,959 5,197 327 5,524 134,138 374,905 $509,043 fl ($197,073) ($197,924) 7,402 (7,779) 1,898 1,846 3,367 ($193,706) 8,713 7,255 579 (9) 16 538 , ($181,386) 1 1 180 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Statement 70 2003 Assets Current assets: Cash and cash equivalents Receivables: Interest Due from other governmental units Prepayments Total assets Liabilities 1,569 $769,819 $567,543 6,134 5,425 15,789 - 10,853 12,477 802,595 585,445 Liabilities Accounts payable Net Assets Unrestricted Total net assets 181 2002 801,026 585,445 $801,026 $585,445 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 71 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Operating revenues: Insurance allocation Recovery of damages Total operating revenues Operating expenses: Cost of services and space Claims administration Claims Total operating expenses Net income from operations Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Total nonoperating revenues (expenses) 2003 $572,401 41,059 613,460 396,937 4,406 11,184 412,527 200,933 2002 $478,373 14,029 492,402 418,531 837 32,165 451,533 40,869 Change in net assets Net assets -beginning Net assets -ending 28,121 (13,473) 25,602 6,292 14,648 31,894 215,581 72,763 585,445 512,682 $801,026 $585,445 182 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 72 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 LI Cash flows from operating activities: Cash received from damages Cash paid to suppliers for goods and services 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 Cash and cash equivalents -January 1 Cash and cash equivalents -December 31 2003 $597,671 (409,334) 188,337 27,412 (13,473) 13,939 202,276 567,543 $769,819 2002 $492,402 (379,734) 112,668 27,758 6,292 34,050 146,718 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 due from other governmental units (Increase) decrease in prepayments Increase (decrease) in accounts payable Increase (decrease) in claims payable Total adjustments Net cash flows from operating activities 420,825 $567,543 $200,933 $40,869 (15,789) 1,624 1,569 (12,596) $188,337 71,799 71,799 $112,668 183 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2003 With Comparative Totals For December 31, 2002 Statement 73 2003 2002 ' Assets Current assets: Cash and cash equivalents $594,629 $564,153 Total assets 594,629 564,153 Liabilities Current liabilities: Compensated absences payable -current 14,050 - Noncurrent liabilities: Compensated absences payable -noncurrent 563,921 547,495 Total liabilities 577,971 547,495 Net Assets Unrestricted 16,658 16,658 ' Total net assets $16,658 $16,658 184 ' t 1 1 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 74 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Operating revenues: Charges for services Operating expenses: Cost of services Net income before transfers Transfers out Change in net assets Net assets -beginning Net assets -ending 2003 $ - 0 0 16,658 $16,658 2002 $ - 0 (138,737) (138,737) 155,395 $16,658 185 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2003 With Comparative Totals For The Year Ended December 31, 2002 Statement 75 2003 Cash flows from operating activities: Cash received from interfund services provided Cash flows from noncapital financing activities: Transfers out Cash flows from investing activities: Investment income: Interest and dividends Change in fair value Net cash flows from investing activities 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: Changes in assets and liabilities: Increase (decrease) in compensated absences payable Total adjustments Net cash flows from operating activities 2002 $30,476 $37,552 (138,737) - 7, 622 0 7,622 30,476 (93,563) 564,153 657,716 $594,629 $564,153 $ - $ - 30,476 37,552 30,476 37,552 $30,476 $37,552 186 u AGENCY FUNDS Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments and the like. The City of Columbia Heights had the following Agency Funds during the year: Permit Surcharge Fund -used to account for SAC charges and surcharges collected for and remitted to the State of Minnesota. Escrow Agency -used to account for payroll-related assets and liabilities. t 1 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING STATEMENT OF CHANGES IN ASSE TS AND LIABILITIES Statement 76 AGENCY FUNDS December 31, 2003 Balance Balance January 1, December 31, 2003 Additions Deletions 2003 Permit Surchar e Assets Cash and investments $8,971 $ - $8,877 $94 Receivables: Accounts - - - - Loans - - - - Total assets $8,971 $0 $8,877 $94 Liabilities ~~ Accounts payable $ - $ - $ - $ - Due to other governmental units 8,971 - 8,877 94 Deposits - - - - Other liabilities - - Totalliabilities $8,971 $0 $8,877 $94 Escrow Fund Assets Cash and investments $27,883 $ - $23,909 $3,974 Receivables: Accounts - 822 - 822 Loans - 31,680 - 31,680 Total assets $27,883 $32,502 $23,909 $36,476 Liabilities Accounts payable $21,136 $ - $16,557 $4,579 Due to other governmental units 806 25,150 - 25,956 Deposits Other liabilities 4,350 1,591 - - - - 4,350 1,591 Total liabilities $27,883 $25,150 $16,557 $36,476 Total Assets Cash and investments $36,854 $ - $32,786 $4,068 Receivables: Accounts - 822 - 822 Loans - 31,680 - 31,680 Total assets $36,854 $32,502 $32,786 $36,570 Liabilities Accounts payable $21,136 $ - $16,557 $4,579 Due to other governmental units 9,777 25,150 8,877 26,050 ' Deposits 4,350 - - 4,350 Other liabilities 1,591 - - 1,591 Total liabilities $36,854 $25,150 $25,434 $36,570 188 1 w 1 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 189 1 ~I - This page intentionally left blank - 190 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS ~'~ Statement 77 SCHEDULE BY SOURCE For The Year Ended December 31, 2003 Balance Balance January 1, December 31, Description 2003 Additions Deletions Adjustments 2003 ~ L d 082 686 $3 $ - $157 000 925 686 $ - $2 • an , , , , , ~ Buildings and structures 9,782,254 44,898 - - 9,827,152 ~ Improvements other than buildings 2,857,550 14,425 - - 2,871,975 i Office furniture and fixtures 253,452 54,054 - - 307,506 Machinery and equipment 4,367,969 222,743 117,811 - 4,472,901 ~ I f 263 9 203 184 6 186 - 389 447 - 15 . n rastructure , , , , , , Construction in progress 5,699,220 1,429,388 6,677,753 - 450,855 Total overnmental funds ca ital assets g P $35,246,394 $7,951,692 $6,952,564 $0 $36,245,522 Investments in governmental funds capital assets by source: General fund $4,811,698 Special revenue funds 6,867,873 Capital project funds 24,565,951 j Total governmental funds capital assets~~~ $36,245,522 ~~~ This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. The capital assets of internal service funds related to governmental activities are included in the statement of net assets. 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS~'~ SCHEDULE BY FUNCTION AND ACTIVITY December 31, 2003 Function and Activity Land General government: Finance and elections $ - General government buildings 78,500 Cable television - Total general government 78,500 Public safety: Police/animaUcivil defense - Fire - Total public safety 0 Public works: Engineering - Streets and maintenance 55,279 Total public works 55,279 Culture and recreation: Parks and recreation 2,770,907 Library 21,000 Total culture and recreation 2,791,907 Community development: Economic development authority - Housing and redevelopment authority - Total community development 0 Construction in progress Total governmental funds capital assets~'~ $2,925,686 Buildings and Structures $ - 1,457,180 1,457,180 _ ,~ 0 1,303,961 1,303,961 812,989 184,848 997,837 1 28,050 6,040,124 6,068,174 ' 9 827 152 $ i ~'~This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. The capital assets of internal service funds related to governmental activites are included in the statement of net assets. ' 192 Statement 78 Improvements Office Other than Furniture Machinery and Construction Buildings and Fixtures Equipment Infrastructure In Progress Total $ - $8,479 $47,627 $ - $ - $56,106 1,686,436 132,579 6,557 - - 3,361,252 - 9,995 - - - 9,995 ~, 1,686,436 151,053 54,184 0 0 3,427,353 ~ - 99,043 407,999 - - 507,042 , - - 710,157 - - 710,157 0 99,043 1,118,156 0 0 1,217,199 - 33,484 58,572 - - 1,396,017 ~ 353,433 - 2,242,807 15,389,447 - 18,040,966 ~ 353,433 33,484 2,301,379 15,389,447 0 19,436,983 ,~ 736,687 11,055 624,036 - - 4,955,674 95,419 - 65,473 - - 366,740 832,106 11,055 689,509 0 0 5,322,414 - 12,871 12,006 - - 52,927 - - 297,667 - - 6,337,791 0 12,871 309,673 0 0 6,390,718 - - - - 450,855 450,855 $2,871,975 $307,506 $4,472,901 $15,389,447 $450,855 $36,245,522 193 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS ~'~ SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY For The Year Ended December 31, 2002 Statement 79 ~~ Balance Balance January 1, December 31, - Function and Activity 2003 Additions Deletions Adjustments 2003 General government: Finance and elections $56,106 $ - $ - $ - $56,106 General government buildings 3,345,215 16,037 - - 3,361,252 Cable television 9,995 - - - 9,995 Total general government 3,411,316 16,037 0 0 3,427,353 Public safety: Police/animaUcivil defense 466,481 103,528 5,200 (57,767) 507,042 Fire 696,364 13,793 - - 710,157 Total public safety 1,162,845 117,321 5,200 (57,767) 1,217,199 Public works: Engineering 1,388,493 7,524 - - 1,396,017 Streets and maintenance 11,819,880 6,265,870 86,109 41,325 18,040,966 Total public works 13,208,373 6,273,394 86,109 41,325 19,436,983 Culture and recreation: ~, Parks and recreation 4,900,158 65,576 26,502 16,442 4,955,674 Library 366,740 - - - 366,740 Total culture and recreation 5,266,898 65,576 26,502 16,442 5,322,414 Community development: Economic development authority 52,927 - - - 52,927 Housing and redevelopment authority 6,444,815 49,976 157,000 - 6,337,791 Total community development 6,497,742 49,976 157,000 0 6,390,718 Construction in progress 5,699,220 1,429,388 6,677,753 - 450,855 Total governmental funds capital assets ~~~ $35,246,394 $7,951,692 $6,952,564 $0 $36,245,522 ~~~ This schedule presents only the capital asset balances related to gov ernmental funds . Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. The capital assets of internal service funds related to , governmental activites are included in the statement of net assets. 1 194 0 ' SUPPLEMENTARY FINANCIAL INFORMATION 0 i~ 195 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED SCHEDULE OF BONDS PAYABLE December 31, 2003 ' Interest Issue Maturity GENERAL LONG-TERM DEBT ACCOUNT GROUP: Rate Date Date G.O. Tax Increment Bonds ' Capital Appreciation Bonds of 1990: 9/01 8/23/1990 9/1/2009 6.90% 6.95% ' 7.00% 7.00% 7.10% ' 7.10% 7.15% 7.15% , G.O. Improvement Bonds Series 1999A: Bonds due on or after February 1, 2008 are callable commencing 2/01-8/01 5/1/1999 2/1/2010 February 1, 2007 and on any date thereafter at a price of par plus accrued 3.45% ' interest. 3.55% 3.65% 3.80% 3.90% ' 4.00% 4.10% 4.15% , 4.25% 4.30% Series 2003A: Bonds due on or after February 1, 2011 are callable commencing 2/01-8/01 6/1/2003 2/1/2018 February 1, 2010 and on any date thereafter at a price of par plus accrued interest. 1.10% 1.30% 1.60% ' 2.10% 2.40% 2.75% 3.00% 3.25% 3.40% 3.50% ' 3.60% 3.70% 3.80% , 3.90% 4.00% Total Bonds -General Long Term Debt Account Group 196 ' Exhibit 1 Page 1 of 2 Original Balance Balance Interest Paid in ' Issue 1/1/2003 Sold Retired 12/31/2003 Current Year $2,399,721 $2,008,206 $ - $377,918 $1,630,288 $542,082 ' 860,000 705,000 - 100,000 605,000 26,365 ' 1 332 828 1 828 332 1 332 828 - , , - , , - , , 4,592,549 2,713,206 1,332,828 477,918 3,568,116 568,447 ' 197 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINED SCHEDULE OF BONDS PAYABLE December 31, 2003 , Interest Issue Maturity Rate Date Date PROPRIETARY FUNDS ' G.O. Utility Revenue Bonds Series 1999B: Bonds due on or after February 1, 2008 are callable commencing 2/01-8/01 5/1/1999 2/1/2010 February 1, 2007 and on any date thereafter at a price of par plus accrued 3.45% interest. 3.55% 3.65% 3.80% , 3.90% 4.00% 4.10% 4.15% ' 4.25% 4.30% Series 2003A: Bonds due on or after February 1, 2011 are callable commencing 2/01-8/01 6/1/2003 2/1/2018 February 1, 2010 and on any date thereafter at a price of par plus accrued interest. 1.10% 1.30% 1.60% ' 2.10% 2.40% 2.75% , 3.00% 3.25% 3.40% ' 3.50% 3.60% 3.70% 3.80% 3.90% 4.00% Total Bonds -Proprietary Funds Total General Obligation Bonds t 198 , r Original Issue $1,935,000 1,264,171 3,199,171 $7,791,720 Exhibit 1 Page 2 of 2 Balance Balance Interest Paid in 1/1/2003 Sold Retired 12/31/2003 Current Year $1,650,000 $ - $180,000 $1,470,000 $59,961 - 1,267,171 - 1,267,171 21,618 1,650,000 1,267,171 180,000 2,737,171 81,579 $4,363,206 $2,599,999 $657,918 $6,305,287 $650,026 199 -This page intentionally left blank - 200 J ~' w ' III. STATISTICAL SECTION (UNAUDITED) n 1 ' 201 CITY OF COLUMBIA HEIGHTS, MINNESOTA GOVERNMENT-WIDE EXPENSES BY FUNCTION 2002 and 2003 ' (Unaudited) r Culture Fiscal General Public Public and Community ' Year Government Safety Works Recreation Development 2002 $1,915,920 $3,920,746 $1,659,152 $2,018,571 $1,679,107 ' 2003 1,756,434 3,630,535 2,646,859 1,909,831 1,239,030 Note: Government-wide revenues are not available for years prior to 2002. , t 202 ' ' Table 1 Interest on Long-term Storm Debt Water Sewer Refuse Sewer Liquor Total ' $575,712 $1,561,071 $1,058,721 $1,271,961 $162,499 $6,343,775 $22,167,235 648,053 1,903,331 1,231,594 1,330,272 204,895 6,619,942 23,120,776 r 203 ' CITY OF COLUMBIA HEIGHTS MINNESOTA GOVERNMENT-WIDE REVENUES 2002 and 2003 (Unaudited) Fiscal Year* 2002 2003 Notes: 7 Program Revenues Charges Operating Capital For Grants and Grants and Services Contributions Contributions $12,706,748 $1,272,637 $4,640,568 ' 13,162,591 1,054,021 895,109 ' * Government-wide reven ues are not available for years prior to 2002. ' 204 i t t t 1 1 1 1 Table 2 General Revenues Property Tax Taxes Increments $4,341,972 $798,446 4,306,036 781,439 Grants and Contributions Not Restricted Unrestricted Gain (loss) to Specific Investment on disposal of Program Earnings Capital Assets $3,275,417 $1,577,071 $6,454 2,712,408 534,879 103,524 205 Total $28,619,313 23,550,007 CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A, C) Table 3 Years 1994 Through 2003 (Unaudited) r Fiscal General Public Public Culture and Community Debt Other Year Government Safety Works Recreation Development Service (B) Total 1994 $1,352,543 $2,576,987 $941,972 $1,433,002 $ - $1,688,796 $419,918 $8,413,218 1995 1,395,395 2,550,980 1,012,634 1,383,686 - 1,424,633 833,417 8,600,745 1 257 090 464 130 1 1 475 888 1 608 033 590 466 9 , , 1996 1,354,292 2,597,866 , - , , , , , , , 1997 1,397,129 2,542,310 1,159,933 1,629,154 - 1,477,132 1,752,565 9,958,223 1998 1,449,476 2,675,544 1,034,362 1,694,361 - 1,414,259 2,975,143 11,243,145 1999 1,548,597 2,838,483 1,128,793 1,703,320 - 1,270,994 2,506,097 10,996,284 , 2000 1,530,423 2,950,642 1,037,534 1,811,671 - 1,233,723 2,846,566 11,410,559 81 6 11 433 833 2001 1,485,904 3,140,180 1,013,303 1,856,672 - 1,181,193 2,75 ,5 , , 2002 1,868,475 3,829,178 1,074,477 1,897,690 713,526 1,277,737 1,022,281 11,683,364 , 2003 1,679,349 3,928,867 2,463,798 1,931,511 285,795 1,080,510 970,455 12,340,285 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) Includes the discretely presented component units of the Housing and Redevelopment Authority and the Economic Development Authority. i d i h H ' (C) Beginning in 2002, the Municipal State Aid Construction, the Downtown Park ng Ramp, an ng t e ous Mortgage Funds were reclassified as Capital Project Funds. 206 ' CITY OF COLUMBIA HEIGHTS, MINNESOTA GENERAL GOVERNMENTAL REVENUES BY SOURCE (A, C) Years 1994 through 2003 Table 4 (Unaudited) Fiscal Special Licenses Inter- Charges for Fines and Investment Misc- Year Taxes Assessments and Permits governmental Services Forfeitures Income ellaneous Total (B) 1994 $3,674,463 $586,129 $165,696 $3,702,419 $447,409 $87,225 $389,451 $259,220 $9,312,012 1995 4,167,428 - 176,290 3,755,162 383,646 89,138 321,971 83,954 8,977,589 1996 3,840,481 - 223,758 4,139,604 879,601 125,543 361,401 167,606 9,737,994 1997 4,489,572 - 202,533 4,302,631 923,485 127,074 443,034 127,862 10,616,191 i 1998 4,449,833 - 289,411 5,286,058 1,167,676 121,858 454,776 287,937 12,057,549 1999 4,413,680 - 401,158 5,282,867 1,029,899 100,161 135,144 242,852 11,605,761 21 754 535 193 270 427 035 12 2000 4,809,958 - 268,014 5,204,427 1,106,613 90, 8 , , , , 2001 4,878,197 - 292,744 6,215,883 1,191,165 87,760 622,688 177,754 13,466,191 2002 4,971,607 - 277,924 4,762,439 1,166,876 84,346 636,329 147,341 12,046,862 2003 4,882,672 - 281,480 3,569,993 1,125,431 140,378 122,667 175,307 10,297,928 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) This schedule includes the Housing and Redevelopment Authority as a b lended component unit of the City, except for 1991-1995 when it was discretely presented as a separate colu mn. (C) Beginning in 2002, the Municipal State Aid Construction, the Downtown Parking Ramp, and the Hou sing Mortgage Funds were reclassified as Capital Project Funds. t i 207 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX LEVIES AND TAX COLLECTIONS Years 1994 Through 2003 (Unaudited) Table 5 Ratio of Collections Percentage Accum. Adjusted of Current of Levy Collections Ratio Delinquent By Market Years Taxes Collected of Prior of Total Taxes to Value During During Years Taxes Collections Accum. Current Year Total Homestead Net Fiscal Fiscal During Fiscal Total to Tax Delinquent Year Collected Tax Levy Credit* Tax Levy Period Period Period Collections Levy Taxes Tax Levy 1994 $2,583,699 $ - $2,583,699 $2,531,198 98.0% $16,381 $2,547,579 0.9860:1 $79,071 0.03060:1 1995 2,608,699 - 2,608,699 2,571,649 98.6% 12,843 2,584,492 0.9907:1 40,418 0.01549:1 1996 2,754,161 - 2,754,161 2,726,715 99.0% 78,666 2,805,381 1.0186:1 33,408 0.01213:1 1997 3,038,144 - 3,038,144 3,001,061 98.8% 23,818 3,024,879 0.9956:1 48,239 0.01588:1 1998 3,201,434 - 3,201,434 3,163,132 98.8% 26,314 3,189,446 0.9963:1 77,078 0.02408:1 1999 3,238,625 - 3,238,625 3,182,088 98.3% 35,374 3,217,463 0.9935:1 103,465 0.03195:1 2000 3,295,956 - 3,295,956 3,267,728 99.1% 73,658 3,341,386 1.0138:1 67,692 0.02054:1 2001 3,625,552 - 3,625,552 3,584,080 98.9% 28,580 3,612,660 0.9964:1 77,177 0.02129:1 2002 4,824,130 570,152 4,253,978 4,194,432 98.6% 34,504 4,228,936 0.9941:1 74,841 0.01759:1 2003 4,929,632 621,476 4,308,156 4,229,000 98.2% 45,685 4,274,685 0.9922:1 84,462 0.01961:1 Source: Certification of Truth in Taxation document filed with Anoka County by the City of Columbia Heights and Anoka County Tax Collections Note: Beginning in 2002, the Final Tax Levy includes the Market Value Homestead Credit. 208 CITY OF COLUMBIA HEIGHTS, MINNESOTA ASSESSED VALUE, TAX CAPACITY, AND Table 6 ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A) Years 1994 Through 2003 (Unaudited) Ratio of Total Assessed/Tax Real Property Personal Property Area Wide Allocation (A) Totals Capacity Value Assessed/ Estimated Assessed/ Estimated Assessed/ Estimated to Total Fiscal Tax Capacity Actual Tax Capacity Actual Tax Capacity Actual Estimated Year Value Value Value Value Contribution Distribution Value Value Actual Value 1994 $9,226,574 $537,840,800 $207,309 $4,447,000 ($594,265) $2,852,940 $11,692,558 $542,287,800 2.16% 1995 9,021,129 541,715,800 207,658 4,549,100 (608,080) 2,759,929 11,380,636 546,264,900 2.08% 233 546 406) 2 671 1996 8 884 047 961 4 500 (552 603 800 220 803 11 156 459 851 550 300 2 03% , , , , , , , , , , , , , , . 1997 9,185,608 564,682,300 224,356 4,912,100 (449,141) 2,873,097 11,833,920 569,594,400 2.08% 1998 8 532) 2 540 064 840 736 586 529 700 193 445 4 891 100 (512 713 11 061 420 591 800 1 87% , , , , , , , , , , , , , , . 1999 8,557,027 608,453,400 168,578 4,871,900 (505,598) 2,527,183 292 2000 9 219 621 657 2 777 1 2 1 1 4 00 503 719 10,747,190 654 903 11 613,325,300 662 002 000 1.75% 1 76% , , , , , ,700 ,709 ,839,3 ( , ) 6 6 , , , , . ' 2001 10,304,905 744,888,200 157,970 4,733,500 (573,922) 3,085,984 12,974,937 2 749,621,700 843 669 00 1.73°/a 1 24% 2002 8,756,307 839,022,200 91,466 4,647,500 (385,323) 1,976,846 10,439, 96 , ,7 . 2003 8,665,656 850,305,500 95,322 4,840,300 (409,330) 2,111,495 10,463,143 855,145,800 1.22% (A) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the in crease in commercial-industrial (including public utility) valuation in each assessment district since 197 1 is contributed to an area-wide tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This index is employed in determining what proportion of the valuation shall be distributed back to each assessment district. Source: Anoka County: Taxes & Taxable Property in the City of Columbia Heights 209 CITY OF CO LUMBIA HEIGHTS, MINNESOTA TAX RATES -PER $100 OF TAX CAPACITY Table 7 Years 1994 Th rough 2003 (Unaudited) Year City School County Metro Other (A) Total 1994 0.23021 0.68142 0.30033 0.04225 0.01018 1.26420 29899 0 04370 0 01570 0 1 30686 1995 0.25686 0.69161 . . . . 1996 0.26460 0.77730 0.29946 "v.v6280 v.Oi488 1.40904 1997 0.29018 0.84748 0.28000 0.04605 0.01381 1.47752 1998 0.30991 0.68491 0.27845 0.05183 0.02287 1.34797 ' 1999 0.31925 0.68837 0.29426 0.05685 0.02442 1.38315 2000 0.30147 0.66465 0.28125 0.05326 0.03212 1.33275 2001 0.30564 0.47452 0.26432 0.05354 0.03073 1.12875 2002 0.49114 0.38684 0.34761 0.0287 0.04158 1.29587 2004 0.45272 0.20299 0.34615 0.01414 0.0419 1.05790 , (A) For years 1993-1997: Rice Creek Watershed, Mosquito Control, and Housing a nd Redevelopment Authority. For years 1998-2002 Rice Creek Watershed, Mosquito Control, Housing and R edevelopment Authority and County Regional Rail. bl P T & T k C i th Cit f C t l bi H i ht , Source: roper e ounty: axes axa Ano a um a e g s n e y o o y i 1 210 : CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY TAX LEVY Years 1994 Through 2003 (Unaudited) Table 8 Fiscal City Levy General Year Total Fund Library EDA Special PERA 1994 $3,548,690 $3,158,342 $390,348 $ - $ - 1995 3,587,209 3,196,861 390,348 - - ,~ 1996 2,754,161 2,340,393 413,768 - - 1997 3,038,144 2,517,101 422,043 99,000 - 1998 3,201,434 2,659,289 443,145 99,000 - 1999 3,238,625 2,660,059 467,518 111,048 - 2000 3,295,956 2,676,416 500,244 119,296 - 2001 3,625,552 2,958,490 547,767 119,295 - 2002 4,824,130 4,083,494 591,588 137,015 12,033 2003 4,817,984 4,243,830 433,585 140,569 - Source: Certification of Truth in Taxation document filed wi th Anoka County by the City of Columbia Heights. ' 211 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL TAXPAYERS December 31, 2003 (Unaudited) Tax Capacity Taxpayer Type of Business Value Medtronics, Inc. Medical Manufacturing $174,502 Bradley Operating LP Commercial 141,728 Consolidated Reality of Minneapolis Apartments 98,923 Maylan Construction Company Retail (K-mart) 86,848 Columbia Heights Center Mall 80,930 Columbia Park Properties Medical Building 76,552 Lake State Properties Commercial 76,278 Crestview Lutheran Home Apartments 65,187 Lynde Investment Co Apartments 57,466 Jeffs Bobby & Steves Auto World Commercial 49,366 Northern States Power Utility 49,072 Total Principal Taxpayers $956,852 Source of Data: Anoka County Auditor's Office Source: Anoka County: Taxes & Taxable Property in the City of Columbia Heights Table 9 of Total City Tax Capacity Value 1.67% 1.35% 0.95% 0.83% 0.77% 0.73% 0.73% 0.62% 0.55% 0.47% 0.47% 9.14% 10,463,143 212 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Table 10 Years 1994 Through 2003 (Unaudited) Deferred Special Assessments Current Current Collections Special Collected Balance Fiscal Assessments % of Delinquent Assessments During at End of Year Due Amount Levy Collections (A) Delinquent Fiscal Period Fiscal Period 1994 * $125,888 $85,292 67.8% $39,267 $60,229 $102,127 $304,970 ~ 4% 4 53 447 057 79 25 130 323 186 ~ 1995 159,282 86,587 5 . , , , , 1996 64,767 38,470 59.4% 58,495 34,147 70,506 158,269 1997 76,405 32,286 42.3% 21,532 54,706 259,263 558,078 1998 141,739 96,100 67.8% 36,320 63,342 413,629 626,176 1999 136,207 86,221 63.3% 58,414 83,475 279,890 604,210 ° 636 992 2000 154,355 100,790 65.3 /a 73,583 84,483 293,080 , 2001 166,451 114,766 68.9% 76,680 80,906 453,679 737,537 2002 199,905 120,665 60.4% 65,149 110,567 421,259 1,073,860 2003 198,497 186,337 93.9% 91,725 28,642 278,606 1,195,738 * The parking ramp at 4025 Van Buren Street NE was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclu sion on the follo wing year's property tax statement and is shown as a delinquent collection. 2 13 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 2003 (Unaudited) Table 11 2002/2003 2001/2002 Market Value Debt Limit Percentage (Note A) Statutory Debt limit Amount of Debt applicable to debt limit: Total bonded debt Less: Tax increment bonds (Note B) Special assessment bonds Revenue bonds Total amount of debt applicable to debt limit Legal debt margin $855,145,800 $775,336,500 2% 2% 17,102,916 15,506,730 6,305,288 4,363,206 , 1,630,288 1,937,828 2,737,172 0 2,008,206 705,000 1,650,000 0 $17,102,916 $15,506,730 Note A: M.S.A. Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in Sections 475.51 to 475.75, "no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 2% of the taxable market value." Note B: M.S.A. Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1. Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. , 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a Permanent Improvement Revolving Fund. 5. Obligations issued for the acquisition and betterment of public water works systems and public lighting, heating or power systems, and of any combination thereof or for any other public convenience from which a revenue is or may be derived. ,~ 6. Not applicable. 7. Amount of all money and face value of all securities held as a Debt Service Fund for the extinguishment of obligations other than those deductible under this subdivision. 8. All other obligations which under the provisions of law authorizing their issuance are not to be included in computing the net debt of the municipality. 214 r i CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF NET GENERAL OBLIGATION BONDED DEBT Table 12 TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA Years 1994 Through 2003 (Unaudited) Ratio of Net Gross Bonded Debt to Net Bonded Fiscal Assessed Bonded Less Debt Net Bonded Assessed Debt Per Year Population Value Debt Service Fund Debt Value Capita 1994 18,910 $11,692,558 $9,679,721 $1,171,524 $8,508,197 72.77% $491 1995 18,910 11,380,636 8,624,721 1,422,979 7,201,742 63.28% 450 1996 18,910 11,156,459 7,469,721 843,287 6,626,434 59.40% 350 1997 18,910 11,833,920 6,314,721 822,740 5,491,981 46.41% 290 1998 18,910 11,061,713 5,324,721 644,112 4,680,609 42.31% 248 1999 18,910 10,747,190 7,174,721 809,379 6,365,342 59.23% 337 2000 18,520 11,654,903 6,274,721 1,546,331 4,728,390 40.57% 255 2001 18,520 12,974,937 5,254,721 1,710,716 3,544,005 27.31% 191 2002 18,520 10,439,296 4,363,206 1,187,646 3,175,560 30.42% 171 2003 18,520 10,463,143 6,305,288 841,666 5,463,622 52.22% 295 215 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES Table 13 FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL GENERAL G OVERNMENTAL EXP ENDITURES Years 1994 Through 2003 (Unaudited) Ratio of Total Debt Service to Total General General Fiscal Debt Governmental Governmental Year Principal Interest Service Expenditures Expenditures 1994 $1,015,000 $618,920 $1,633,920 $8,413,218 19.4% 1995 1,055,000 357,961 1,412,961 8,600,745 16.4% 1996 1,155,000 304,268 1,459,268 9,590,466 15.2% 1997 1,155,000 246,128 1,401,128 9,958,223 14.1% 1998 990,000 190,390 1,180,390 11,243,145 10.5% 1999 945,000 138,167 1,083,167 10,996,284 9.9% 2000 900,000 224,530 1,124,530 11,410,559 9.9% 2001 1,020,000 144,550 1,164,550 11,433,833 10.2% 2002 891,515 599,415 1,490,930 11,683,364 12.8% 2003 477,918 569,513 1,047,431 12,340,285 8.5% 216 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT December 31, 2003 Table 14 (Unaudited) Amount Applicable to Net Percentage City of General Applicable Columbia Heights Obligation Debt~'~ to City Share of Debt Direct debt: City of Columbia Heights $6,305,288 100.0% $6,305,288 Overlapping debt: Anoka County 93,445,000 5.1% 4,728,317 Metropolitan Council 221,700,000 5.1% 11,218,020 ISD 13 (Columbia Heights) 31,140,000 69.8% 21,723,264 Total overlapping debt 346,285,000 37,669,601 Totals $352,590,288 $43,974,889 ~~~The amounts presented for overlapping is as of December 31, 2002. if S k di C ource: Ano icate a County Au tor ert 217 CITY OF COLUMBIA HEIGHTS, MINNESOTA REVENUE BOND COVERAGE: WATER, SEWER AND STORM SEWER FUNDS Last Ten Years As Applicable (Unaudited) Table 15 Net Revenue Fiscal Gross Operating Available for Debt Service Requirements Year Revenues (1) Expenses (2) Debt Service Principal (3) Interest (3) Total (3) Coverage 1999 $2,733,079 $2,120,759 $612,320 $ - $ - $ - 0.00 2000 3,216,084 2,201,375 1,014,709 - 95,497 95,497 10.63 2001 3,105,845 2,442,339 663,506 110,000 74,500 184,500 3.60 2002 3,137,928 2,439,443 698,485 175,000 69,496 244,496 2.86 2003 3,103,936 2,866,017 237,919 180,000 63,006 243,006 0.98 Notes: The revenue bonds were issued in 1999, thus statistical information is shown from that year on. 1. Total revenues including investment income. 2. Total expenses excluding depreciation 3. Includes principal and interest of revenue bonds presented on a cash basis. 218 CITY OF COLUMBIA HEIGHTS, MINNESOTA PROPERTY VALUE AND CONSTRUCTION Years 1994 Through 2003 (Unaudited) Table 16 Property Value (A) Construction Fiscal Number Year Real Personal Total of Units Value 1994 $9,226,574 $207,309 $9,433,883 565 $4,522,438 1995 9,021,129 207,658 9,228,787 596 4,927,970 1996 8,884,233 220,961 9,105,194 602 11,910,040 i~ 1997 9,185,608 224,356 9,409,964 678 5,904,308 1998 8,840,736 193,445 9,034,181 869 16,991,747 1999 8,557,027 168,578 8,725,605 1,254 24,018,811 2000 9,219,621 161,709 9,381,330 794 6,767,183 2001 10,304,905 157,970 10,462,875 671 12,547,885 2002 8,756,307 91,466 8,847,773 625 8,283,941 2003 8,665,656 95,322 8,760,978 577 11,056,530 ,~ (A) Tax capacity (1994-2003) values from Table 6. i 219 I CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS Table 17 December 31, 2003 Page 1 of 2 (Unaudited) Date of Incorporation March 14, 1898 Date of Adoption of City Charter July 21, 1921 il M Form of Government anager - Counc Fiscal Year Begins January 1 Area of City 3.52 Square Miles Miles of Streets and Alleys: Trunk Highways 3.0 County 6.2 City Streets 61.8 Alleys 18.9 Miles of Sewers: Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 ' Building Permits Issued: 1993 505 1994 565 1995 596 1996 602 1997 1998 678 869 ~' 1999 1,254 2000 794 2001 671 2002 625 2003 577 Estimated Construction Cost for Issued Permits: 1993 3,292,353 1994 4,522,438 1995 4,927,970 1996 11,910,040 1997 5,904,308 1998 16,991,747 1999 24,018,811 2000 6,767,183 2001 12,547,885 2002 8,283,941 2003 11,056,530 220 , CITY OF COLUMBIA HEIGHTS, MINNESOTA MISCELLANEOUS STATISTICS December 31, 2003 (Unaudited) i Table 17 Page 2 of 2 Fire Protection: Number of Stations Number of Employees: ' Full-time Part-time Volunteer Police Protection: Number of Stations Number of Employees Parks: City Parks Playgrounds County Park ~; Schools: Senior High Junior High Elementary Parochial Elementary Employees (as of December 31, 2003): ~~ Regular Part-time Elections: Registered voters -Last City General Election (11/05/02) ~' Number of Votes Cast -Last City General Election Percentage of Registered Voters Voting Population: ~'~ 1900 1920 1930 1940 1950 1960 ~ 1970 1975 (Mid Decade Census) 1980 1985 1990 (Census) 2000 (Census) 1 8 1 36 1 32 13 11 1 1 1 3 1 108 56 164 10,261 8,405 81.91% 221 123 2,968 5,613 6,053 8,175 17,533 23,997 23,316 20,029 19,540 18,910 18,520 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEMOGRAPHIC STATISTICS (Unaudited) Table 18 POPULATION, HOUSEHOLDS, AND HOUSEHOLD SIZE PROJECTIONS Households a,w7 Household Size (People/Household) 2.30 Population 18,520 POPULATION DEMOGRAPHICS Number of Persons by Age: *** Persons Percent 4 and under 995 5.37 5 _ g 1,097 5.92 10 - 14 1,105 5.97 15 - 19 1,078 5.82 20 - 24 1,170 6.32 25 - 34 2,663 14.38 35 - 44 2,897 15.64 45 - 54 2,340 12.63 55 - 59 878 4.74 60 - 64 842 4.55 65 - 74 1,670 9.02 75 - 84 1,325 7.15 85 and over 460 2.48 Total population 18,520 100.00 Total female population 9,629 51.99 Total male population 8,891 48.01 OCCUPATION INFORMATION Management, professional, and related occupations 28.00 Service occupations 16.10 Sales and office occupations 31.30 Farming, fishing and forestry occupations 0.20 Construction, maintenance, transportation and manufacturing occupations 24.40 INCOME INFORMATION Median income per capita $21,368 Median income per household $40,562 Median income per family $50,610 * Source: 2000 Census ** Source: US Census Bureau, Profile of Occupation, Industry and Class of Worker: 2000 *** Source: US Census Bureau, Profile of General Demographic Characteristics: 2000 **** Source: US Census Bureau, Income and Poverty Status in 1999: 2000 222 r r [l f IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS 223 ~I - This page intentionally left blank - 1 1 224 '~ ~ Tautges Redpath, Ltd. Certified Public Accountants and Consultants Independent Auditor's Report on Compliance With Minnesota Le;;al Compliance Audit Guide for Local Governments To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota We have audited the basic financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 2003, and have issued our report thereon dated '~ March 31, 2004. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the State Auditor pursuant to Minnesota Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance AZrdit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City of Columbia Heights, Minnesota complied with the material terms and conditions of applicable legal provisions, except as described in this report. This report is intended solely for the information and use of the City Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. March 31, 2004 HLB TAUTGES REDPATH, LTD. Certified Public Accountants White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 Hastings Office: 1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone: 651 480 4990 Fax: 651 426 5004 HLB Tautges Redpath, Ltd. is a member of ®International. A world-wide organization of accour~~~rms and business advisers. w t1 - This page intentionally left blank - ~' i r 1 226 t FINDING: The Ci , accepts gifts without a formal Council resolution. CONDITION.• Minnesota Statutes require the City to accept grants, donations and gifts by passing a Council resolution. CRITERIA: Minnesota Statute 465.03 reads as follows: 465.03 Gifts to Municipalities Any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted by atwo-thirds majority of its members, expressing such terms in full. RECOMMENDATION.• We recommend the City accepts grants, donations and gifts by passing a Council resolution. CITY RESPONSE: The City Council acknowledges donations in the official minutes by motion not by resolution. 1 227 1 - This page intentionally left blank - 228 !J~ I~ 1 1 ~ Tautges Redpath, Ltd. Certified Public Accountants and Consultants ' Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ' To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota ' We have audited the basic financial statements of the City of Columbia Heights, Minnesota as of and for the year ended December 31, 2003, and have issued our report thereon, dated March 31, 2004. We conducted our audit in accordance with auditing standards generally ' accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the City of Columbia Heights, ' Minnesota's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of ' basic 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 that are required to ' be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Columbia Heights, Minnesota's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and ' not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that ' we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our~udgment, could adversely affect the City of ' Columbia Heights, Minnesota's ability to record, process, summarize, and report ' White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 Hastings Office: 1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone: 651 480 4990 Fax: 651 426 5004 ' HLB Tautges Redpath, Ltd. is a member of ®International. A world-wide organization of accou~j~Qrms and business advisers. 0 0 C n - This page intentionally left blank u 230 ' J fl u 1 u financial data consistent with the assertions of management in the basic financial statements. Reportable conditions are described in the accompanying schedule of findings and questioned costs as item 2003-1. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe that none of the reportable conditions described above is a material weakness. We also noted other matters involving the internal control over financial reporting, which we have reported to management of the City of Columbia Heights, Minnesota in a separate letter dated March 31, 2004. This report is intended solely for the information and use of the City Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. r March 31, 2004 n ~~ ~~~.- ~~ i~~~ ~ ~ HLB TAUTGES REDPATH, LTD. Certified Public Accountants ' 231 it r, ~J 0 -This page intentionally left blank - 0 232 , ~'~ ~ Tautges Redpath, Ltd. Certified Public Accountants and Consultants Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 ' To the Honorable Mayor and Members of the City Council ' Columbia Heights, Minnesota ' Compliance We have audited the compliance of the City of Columbia Heights, Minnesota with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2003. The City of Columbia Heights, Minnesota's major federal programs are identified in the summary of auditor's results section ' of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City of Columbia Heights, Minnesota's management. ' Our responsibility is to express an opinion on the City of Columbia Heights, Minnesota's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the ' United States; and OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the ' types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Columbia Heights, Minnesota's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opmTOn. Our ' audit does not provide a legal determination on the City of Columbia Heights, Minnesota's compliance with those requirements. ' White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 Hastings Office: 1303 South Frontage Road, Suite 13, Hastings, MfV2~33, USA Telephone: 651 480 4990 Fax: 651 426 5004 ' HLB Tautges Redpath, Ltd. is a member of ®International. A world-wide organization of accounting firms and business advisers. L 0 [l n J -This page intentionally left blank - , 0 234 ' In our opinion, the City of Columbia Heights, Minnesota complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2003. Internal Control Over Compliance The management of the City of Columbia Heights, Minnesota is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing ' our audit, we considered the City of Columbia Heights, Minnesota's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by ' employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. We also noted other matters involving the internal controls and its operation that we have reported to the management of the City of Columbia Heights, Minnesota, and the Columbia ' Heights Economic Development Authority, in separate reports dated March 31, 2004. Schedule of Expenditures of Federal Awards ' We have audited the basic financial statements of the City of Columbia Heights, Minnesota as of and for the year ended December 31, 2003, and have issued our report thereon dated March 31, 2004. Our audit was performed for the purpose of forming an opinion on the ' basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the 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. 235 - This page intentionally left blank - 236 fl [1 I1 n ' This report is intended solely for the information and use of the City Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. March 31, 2004 1 ~~ r ~,~. ~~~ , ' HLB TAUTGES REDPATH, LTD. Certified Public Accountants [I 237 - This page intentionally left blank - 238 it i~ CITY OF COLUMBIA HEIGHTS MINNESOTA ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2003 1. 2. ' SECTION I -SUMMARY OF AUDIT RESULTS The Independent Auditor's Report expresses an unqualified opinion on the basic financial statements of the City of Columbia Heights, Minnesota. There was one reportable condition disclosed during the audit of the financial statements as reported in the Independent Auditor's Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. The above condition was not determined to be a material weakness. ' 3. No instances of noncompliance material to the financial statements of the City of Columbia Heights, Minnesota were disclosed during the audit. 4. No reportable conditions relating to the audit of the major federal award programs is reported in the Independent Auditor's Report on Compliance with Requirements ' Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133. 5. The auditor's report on compliance for the major federal award programs for the City of Columbia Heights, Minnesota expresses an unqualified opinion. 6. Audit findings, if any, relative to the major federal award programs for the City of Columbia Heights, Minnesota are reported in Section III of this Schedule. 7. Federal Emergency Management Agency (FEMA) Assistance to Firefighters Grant Program - CFDA #83.554 was tested as a major program. 8. The threshold for distinguishing Types A and B programs was $300,000. 9. The City of Columbia Heights, Minnesota was determined to be a low-risk auditee for 2003. 239 ~J -This page intentionally left blank - 240 i CITY OF OLUMB H HT MINNESOTA C IA EIG S, SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2003 SECTION II -FINANCIAL STATEMENT FINDINGS ' 2003-1: Recreational Revenue Documentation Condition: Certain documentation needs to be maintained in the City's files to substantiate that proper procedures have been followed when recording recreational revenue. Currently, documentation is not maintained that provides for verifying the completeness of recreation revenue. We noted the City does not maintain an audit trail regarding recreational revenue. Also, checks received by the Recreation Department are endorsed at the end of the day rather than upon receipt. ' Recommendation: As noted in 2001 and 2002, we suggest the City improve cash receipting procedures which would include use of the cash register, endorsements of checks upon receipt with a stamp, and independent verification of class rosters. Corrective Action Plan: In 2003, the Recreation Department began implementing the use of the cash register system. In 2004, the City needs to implement a system of independent verification of class rosters. SECTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no findings or questioned costs involving federal programs. 241 t - This page intentionally left blank - L L 242 ' 1 CITY OF COLUMBIA HEIGHTS MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2003 SECTION IV -PRIOR YEAR FINDINGS '~ DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 2002-3: Capital Funds Program, CFDA #14.872 Condition and Criteria: Requests for expenditure reimbursements should be submitted to HUD in a timely manner in order to properly match expenditures and revenues in the appropriate periods. During 2002 testing several of the CFP 2002 revenues included reimbursements for 2000 and 2001 expenditures, and the 2000 and 2001 required annual 1 reports were not submitted until 2002. Questioned Cost: There were no questioned costs as a result of this fmding. Recommendation: The City should develop internal control procedures to ensure that all requests for reimbursements and federal reports are submitted in a timely manner in order to match revenues and expenditures and fulfill the reporting requirements set forth by HUD. Corrective Action Plan: On February 20, 2003, the HUD FY 2003 Appropriations Act retroactively enforced a recapture of all nonobligated funds past the applicable deadlines for HUD FY's 1998, 1999, 2000, and 2001. For the fiscal year ending December 31, 2003, ' the City reported a liability of $104,471 to be returned to HUD in 2004, as required by the Act. Current Status: The HRA has complied with reimbursement requirements for the fiscal year ended December 31, 2003. In the future, the City will continue to ensure that required reimbursement requests are filed in a timely manner. r 243 1 1 - This page intentionally left blank - ' IJ 244 , t t 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31, 2003 Federal Funding Source/ Federal 2003 Pass Through Agency/ CFDA Federal Program Title Number Expenditures U.S. Department of Justice: Direct: Local Law Enforcement Block Grant 16.592 $17,048 Passed -through State of MN Department of Economic Security: Juvenile Accountability Incentive Block Grant 16.523 6,436 U.S. Department of Homeland Security: Federal Emergency Management Agency: Direct: Assistance to Firefighters Grant Program 83.554 225,000 Passed-through Anoka County: Emergency Management Assistance Grant 83.503 3,337 U.S. Department of Housing and Urban Development: Passed-through Anoka County: Community Development Block Grant - Entitlement Grant (CDBG) 14.218 50,000 Direct: Operating Subsidy 14.850 84,667 Capital Funds Program (CFP) 14.872 56,806 U.S. Department of Education: Passed-through Columbia Heights Independent School District #13: Children Families and Learning - 21st Century Grant 84.287 35,174 U.S. Department of Health and Human Services: Passed-through State of Minnesota Department of Health: Armed and Alert Grant 93.136 5,550 U.S. Department of Transportation: Passed-through State of Minnesota Department of Public Safety: ACE Night Cap 20.601 592 Total Federal Expenditures $484,610 245 1 1 - This page intentionally left blank - J fl t 246 t a n 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended December 31, 2003 Note 1. Basis of Presentation The above schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia Heights, Minnesota (including its component units) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2. 5ubrecipients During 2003, the City of Columbia Heights did not pass federal money to subrecipients. Note 3. Reporting Entity The City of Columbia Heights, Minnesota, for purposes of this schedule includes all funds of the primary government as defined by GASB Statement No. 14, The Financial Reporting Entity. This schedule also includes the Housing and Redevelopment Authority (HRA), and the Economic Development Authority (EDA) which are the sole component units of the City. Note 4: Schedule of5tatement and Certification of Actual Modernization Costs: Annual Contributions 1. The actual modemization costs are as follows: Funds approved Funds expended Excess of funds approved (expended) Funds advanced -HUD Grants Funds expended: FY 2001 FY 2002 FY 2003 MN 46P10550101 MN 46P10550102 MN 46P10550103 Amendment # 15 Amendment # 16 Amendment # 17 $130,591 $124,349 $102,313 130,591 54,430 - $0 $69,919 $102,313 $130,591 $29,928 $ - In prior years 128,217 - - In current year 2,374 54,430 - Excess of funds approved (expended) $0 ($24,502) $0 2. The distribution of costs by project as shown on the Final Statement of Development Cost budget, accompanying the Actual Development cost Certificate submitted to HUD for approval, is in agreement with the City's records. 3. All modemization costs have been paid and all related liabilities have been discharged through payment, other than the following liability for repayment at 12/31/03, as described Section IV -Prior Year Findings: Repayment due to HUD as of 12/31/03 $104,471 ' 247 u L~ 1 -This page intentionally left blank - 1 248 ' t ~ Tautges Redpath, Ltd. Certified Public Accountants and Consultants Independent Auditor's Report on Supplementary Information - Financial Data Schedule To the Honorable Mayor and Members of the City Council Columbia Heights, Minnesota We have audited the basic financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 2003, and have issued our report thereon dated March 31, 2004. Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying Financial Data Schedule is presented for purposes of additional analysis as required by the U.S. Department of Housing and Urban Development and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the City Council, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than those specified parties. March 31, 2004 ~ R ~~~~. T~~~z, ~~ HLB TAUTGES REDPATH, LTD. Certified Public Accountants fl White Bear Lake Office: 4810 White Bear Parkway, White Bear Lake, Minnesota 55110, USA Telephone: 651 426 7000 Fax: 651 426 5004 Hastings Office: 1303 South Frontage Road, Suite 13, Hastings, MN 55033, USA Telephone: 651 480 4990 Fax: 651 426 5004 ' HLB Tautges Redpath, Ltd. is a member of ®International. A world-wide organization of accourms and business advisers. fl - This page intentionally left blank - 250 CITY OF COLUMBIA HEIGHTS, MINNESOTA U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINANCIAL DATA SCHEDULE As of and For The Year Ended December 31, 2003 Page 1 of 2 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 162 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 180 Total noncurrent assets 190 Total assets Liabilities: Current liabilities: 312 Accounts payable <= 90days 321 Accrued wages/payroll taxes payable 333 Accounts payable -other governments 341 Tenant security deposits 347 Interprogram -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 512.1 Unrestricted 513 Total net assets Public Housing Public Housing Operating Capital Fund Subsidy Program $528,567 $ - 528,567 0 15,664 26,878 217 - 501 - 5,285 - 21,667 26,878 26,878 - 577,112 26,878 128,700 - 4,172,531 - 442,206 - 5,144 - 4,748,581 0 (3,821,781) - 926,800 0 926,800 0 1,503,912 26,878 $27,217 $ - 631 - 124,079 - 12,260 - - 26,878 164,187 26,878 0 0 164,187 26,878 926,800 - 412,925 - $1,339,725 $0 251 ~~ -This page intentionally left blank - a 252 1 fJ r ~J r_~ CITY OF COLUMBIA HEIGHTS, MINNESOTA U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINANCIAL DATA SCHEDULE As of and For The Year Ended December 31, 2003 Page 2 of 2 Line Item Account Description Revenue: 703 Net tenant rental revenue 704 Tenant revenue-other 706 HUD PHA grants 711 Investment income -unrestricted 700 Total revenue Expenses: 911 Administrative salaries 912 Auditing fees 913 Outside management fees 916 Other operating -administrative 924 Tenant services -other 931 Water 932 Electricity 933 Gas 938 Other utilities expense 942 Ordinary maintenance and operations 961 Insurance premiums 962 Other general expenses 963 Payments in lieu of taxes 969 Total operating expenses 974 Depreciation 900 Total expenses 1001 Operating transfers in 1002 Operating transfers out 1010 Total other financing sources (uses) 1000 Excess (deficiency) of total revenue over (under) total expenses Memo account information: 1103 Beginning equity 1104 Prior period adjustments, equity transfers and correction of errors 1113 Maximum annual contributions commitment (per ACC) 1115 Contingency reserve, ACC program reserve 1116 Total annual contributions available 1120 Unit months available 1121 Number of unit months leased Public Housing Public Housing Operating Capital Fund Subsidy Program 14.850 14.872 $278,953 $ - 8,298 - 84,667 56,806 27,485 - 399,403 56,806 43,509 - 1,287 - 113,654 - 4,806 - 37 - 7,047 - 33,474 - 45,495 - 7,958 - 38,112 982 31,076 - ] 0,419 104,471 ] 9,526 - 356,400 105,453 35,541 - 391,941 105,453 55,824 104,471 (104,471) (55,824) (48,647) 48,647 (41,185) 0 1,380,910 - - N/A N/A N/A N/A N/A N/A N/A 1,200 N/A 1,197 N/A ,~ 253 t t w -This page intentionally left blank - n 1 254