HomeMy WebLinkAbout2005 CAFRCOMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2005
Finance Department
William J. Elrite, Finance Director
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Principal City Officials 3
Organizational Chart 5
Letter of Transmittal 7
Certificate of Achievement for Excellence in Financial Reporting 13
II. FINANCIAL SECTION
Independent Auditor's Report 17
Management's Discussion and Analysis 21
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets Statement 1 40
Statement of Activities Statement 2 42
Fund Financial Statements:
Balance Sheet -Governmental Funds Statement 3 44
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 4 46
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 49
Statement of Net Assets -Proprietary Funds Statement 6 50
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds Statement 7 52
Statement of Cash Flows -Proprietary Funds Statement 8 54
Statement of Fiduciary Net Assets -Fiduciary Funds Statement 9 58
Notes to Financial Statements 59
Required Supplementary Information:
Budgetary Comparison Schedule -General Fund Statement 10 92
Budgetary Comparison Schedule -Anoka County CDBG Statement 11 94
Budgetary Comparison Schedule -Economic Development Authority Administration Statement 12 95
Budgetary Comparison Schedule -Note to RSI 96
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet -Nonmajor Governmental Funds Statement 13 102
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
NonmajorGovernmental Funds Statement 14 103
Subcombining Balance Sheet -Nonmajor Special Revenue Funds Statement 15 107
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Special Revenue Funds Statement 16 111
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual:
Community Development Statement 17 114
Cable Television Fund Statement 18 115
Library Fund Statement 19 116
D.A.R.E. Program Statement 20 117
Fund Balance -Actual:
Special Projects Statement 21 118
C.H.A.S.E. Statement 22 119
Twenty-First Century Grant Statement 23 120
Confiscated Property Statement 24 121
Local Law Enforcement Block Grant Statement 25 122
Police Grants -Other Statement 26 123
Recreation Contributed Projects Statement 27 124
Contributed Projects Statement 28 125
Flex Benefit Fund Statement 29 126
Housing and Redevelopment Authority (Component Unit):
Combining Balance Sheet Statement 30 127
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance Statement 31 128
Schedules of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual:
Parkview Villa North Statement 32 129
Parkview Villa South Statement 33 130
Fund Balance -Actual:
Rental Housing Statement 34 131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Economic Development Authority (Component Unit):
Business Revolving Loan Fund:
Balance Sheet Statement 35 132
Statement of Revenues, Expenditures and Changes in Fund Balance Statement 36 133
Subcombining Balance Sheet -Nonmajor Debt Service Funds Statement 37 136
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Debt Service Funds Statement 38 138
Subcombining Balance Sheet -Nonmajor Capital Project Funds Statement 39 143
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance -Nonmajor Capital Project Funds Statement 40 147
Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Assets Statement 41 152
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 42 153
Subcombining Schedule of Cash Flows Statement 43 154
Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 44 155
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 45 156
Subcombining Schedule of Cash Flows Statement 46 157
Refuse Utility Fund:
Subcombining Schedule of Net Assets Statement 47 158
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 48 159
Subcombining Schedule of Cash Flows Statement 49 160
Storm Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 50 161
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 51 162
Subcombining Schedule of Cash Flows Statement 52 163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Liquor Fund:
Subcombining Schedule of Net Assets Statement 53 164
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 54 165
Subcombining Schedule of Cash Flows Statement 55 166
Internal Service Funds:
Combining Statement of Net Assets Statement 56 168
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets Statement 57 169
Combining Statement of Cash Flows Statement 58 170
Central Garage Fund:
Subcombining Schedule of Net Assets Statement 59 171
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 60 172
Subcombining Schedule of Cash Flows Statement 61 173
Data Processing Fund:
Subcombining Schedule of Net Assets Statement 62 174
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 63 175
Subcombining Schedule of Cash Flows Statement 64 176
Insurance Fund:
Subcombining Schedule of Net Assets Statement 65 177
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 66 178
Subcombining Schedule of Cash Flows Statement 67 179
Compensated Absences Fund:
Subcombining Schedule of Net Assets Statement 68 180
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 69 181
Subcombining Schedule of Cash Flows Statement 70 182
Combining Statement of Changes in Assets and Liabilities -Agency Funds Statement 71 184
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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III. STATISTICAL SECTION (UNAUDITED)
Government-Wide Information:
Government-Wide Expenses By Function Table 1 186
Government-Wide Revenues Table 2 188
Fund Information:
General Governmental Expenditures by Function Table 3 190
General Governmental Revenues by Source Table 4 191
Tax Levies and Tax Collections Table 5 192
Assessed Value, Tax Capacity, and Estimated
Actual Value of all Taxable Property Table 6 193
Tax Rates -Per $1 of Tax Capacity Table 7 194
City Tax Levy Table 8 195
Principal Taxpayers Table 9 196
Special Assessment Levies and Collections Table 10 197
Computation of Legal Debt Margin Table 11 198
Ratio of Net General Obligation Bonded Debt to Assessed Value and Net General
Obligation Bonded Debt Per Capita Table 12 199
Ratio of Annual Debt Service Expenditures For General Obligation Bonded Debt
to Total General Governmental Expenditures Table 13 200
Computation of Direct and Overlapping Debt Table 14 201
Revenue Bond Coverage: Water, Sewer, and Storm Sewer Funds Table 15 202
Property Value and Construction Table 16 203
Miscellaneous Statistics Table 17 204
Demographic Statistics Table 18 206
IV. SINGLE AUDIT AND OTHER REQUIRED REPORTS SECTION
Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Government 209
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with Government Auditing Standards 213
Report on Compliance with Requirements Applicable to each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133 217
Schedule of Findings and Questioned Costs 223
Schedule of Expenditures of Federal Awards 226
Report on Supplementary Information -Financial Data Schedule 229
Financial Data Schedule 231
I. INTRODUCTORY SECTION
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
Year Ended December 31, 2005
Name
Official Title
Mayor and Council
Gary L. Peterson
Tammera Ericson Diehm
Bruce Kelzenberg
Bruce Nawrocki
Robert A. Williams
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Administration
Walter Fehst
Linda Magee
William Elrite
Jim Hoeft
Kevin Hansen
Thomas Johnson
Gary Gorman
M. Rebecca Loader
Robert Streetar
Keith Windschitl
Larry Scott
Lauren McClanahan
City Manager
Assistant to City Manager
City Clerk-Treasurer, Finance Director
City Attorney
Public Works Director, City Engineer
Chief of Police
Chief of Fire
Librarian
Community Development Director
Recreation Services Director
Liquor Operations Manager
Superintendent of Public Works
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City of Columbia Heights
Organizational Chart
Mayor:
Gary L. Peterson
Cauncilmembers:
Tammera Ericson-Diehm
Brace Kelzenberg
Brace Nawrocki
Robed Williams
City Manager:
Walter Fehst
POLICE Administered by Mayor}
Police Chief: Thomas Johnson
Secretary II
Clerk-Typist II
Police Captain
Sergeants (3}
Corporals ~2}
Patrol officers (16}
Community Service Officers ~2}
Support Services Supervisor
Secretary II-A (2}
FIRE
Fire Chief: Gary Gorman
Assistant Fire Chief
Fire Captains (3}
Secretary II (PT}
Clerk Typist II
Firefighters ~3}
0n-Call Firefighters X25}
LIBRARY
Library Director: M. >~ebecca Loader
Clerk-Typist II ~2}
Library Clerk (PT}
Library Supervisor (4 PT}
Page ~1D PT}
Library Aide APT}
Adult Services Specialist
Children's Librarian
PUBLIC 1NORKS
Public 1Narks DirectarlCity Engineer: Kevin Hansen
Secretary II-A
Assistant City Engineer
Administrative Assistant
Engineering Technician IV ~2}
Engineering Technician III
Public Works Superintendent
Foreman (Parks, Sewer & Water, Streets} (3}
Maintenance Worker (15}
Supervisor-Vehicle Maintenance
Maintenance III -Mechanic
Maintenance III - BodymanlPainter
ADMINISTRATION
Assistant to the City Manager
Human Resources Director: Linda Magee
Deputy City ClerklCouncil Secretary*
Special Projects Coordinator
Administrative Secretary
RECREATION
Recreation Director: Keith ~ndschitl
ClerklTypist II
Senior Citizen Coordinator
Program Coordinator
Recreation Clerk (PT}
Head Custodian
Custodian II (8 PT}
Custodian I APT}
Commissions & Boards:
Charter
EDA
H RA
Police & Fire Civil Service
Traffic
Telecommunications
Planning & Zoning
Park & Recreation
Library
FINANCE
Finance DirectarlCity ClerklTreasurer: William Elrite
Secretary II
Assistant Finance Director
Accounting Coordinator
PayrolllAccounting Clerk
Utilities Accounting Clerk II
Utilities Accounting Clerk
Accounting Clerk II APT}
Switchboard ~peratorlReceptionist
Meter Reader APT}
Liquor operations Manager
Assistant Liquor operations Manager (6}
Retail Clerk (3D PT}
IS Director
IS Technician
Election Judge ovaries}
COMMUNITY DEVELOPMENT
Community Development Director: Bob Streetar
Community Development Assistant
Building official
Planner
Community Development Specialist
Secretary II-LicensinglPermits Clerk
Secretary II
*Also serves in the capacity of Deputy City Clerk under the City Manager.
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590 40~ Avenue N.E. Columbia Heights, MN 55421-3$78 Office X763} 706-3600 TDD X763} 706-3692 Fax X763} 706-3637
May 31, 2D06
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, 2005, is hereby submitted. The City's management assumes responsibility
for bath the completeness and reliability of the information contained in this report, based on a
comprehensive framework of internal control that it has established for this purpose. Because
the cost of internal control should not exceed its anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
HLB Tautges Redpath, Ltd., Certified Public Accountants, have issued an unqualified ~"Clean"}
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2005. Their independent auditors' report is located at the front of the financial section of this
report.
State Iaw requires every city to issue by tune 30th of each year a complete set of audited f nancial
statements for the preceding f scal year ended December 31st. In addition, state law requires
each City have an annual Minnesota Legal Compliance Audit performed. During the year ended
December 31, 2005, the City expended more than X500,000 in federal grant awards. The City is
therefore also required to undergo an audit in conformity with the provisions of the Single Audit
Act of 1984 and the United States Office of Management and Budget Circular A-133.
Information related to the Single ~A-133} Audit and the Minnesota Legal Compliance Audit,
including the Schedule of Expenditures of Federal Awards, is included in the Single Audit and
other Required Reports Section at the back of this report.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis ~MD&A}. This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Columbia
Heights' MD&A can be found immediately following the report of the independent auditors.
PROFILE DF THE GOVERNMENT
The City of Columbia Heights, a suburb located north of the City of Minneapolis in Anoka
County in east-central Minnesota, was originally incorporated as a village in } 598. In 1921,
pursuant to the adoption of a home rule City Charter by the qualified voters of the City, a
council-manager form of government, was instituted.
Service .~s U~r Business
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL 4PPORT~JNITY EMPLOYER
The City Council consists of a Mayor and four Councilmembers. All are elected at-large, on a
nonpartisan basis. The Mayor serves a two-year team and the Councilmembers serve four-year
terams. The City Manager is appointed by the City Council. The City covers an area of 3.52
square miles and currently has a population of 18,520. The City is empowered to levy a tax on
both real and personal property within. its boundaries.
All City funds, departments, commissions and other organizations far which the City of
Colurr~bia Heights is ~.nancially accountable, including all component units, are presented within
the Comprehensive Annual Financial Report. The Flouring and Redevelopment Authority ~HR.A}
and the Economic Development Authority VEDA} are included in the reporting entity as blended
component units of the City of Columbia Heights due to the fact that the governing boards are
substantively the same and the City is in a relationship of financial benef t or burden with the
out or~ties.
The City provides a full range of services to its citizens. These services include, but are not
limited to, police and f re protection; water and sanitation services; the construction and
maintenance of highways, streets, and infrastructure; library; recreational facilities; cultural
events; and general administrative services.
LOCAL EC~N~MY
The City is located within the varied and stable economic base of the Minneapolis-Saint Paul
greater metropolitan area, which is a major center for both the state and the Upper-Midwest. As
such, there has been a relatively stable level of en~ploy~ment for City residents and this is
expected to continue.
The largest employers located within the boundaries of the City itself include Medtronic lnc, a
medical device manufacturer; independent School District 13; and Crestview Corporation, a
provider of elder care.
The greater metropolitan region has seen a dramatic increase in traff c congestion aver the last
decade. A study by the Texas Transportation institute found that between 199b and 2001
congestion on the Minneapolis-Saint Paul area freeways grew faster than in any major U.S.
metropolitan region other than Ft. Lauderdale Florida. In annual surveys conducted. by the area's
regional government, the Metropolitan Council, area residents ranked traff c congestion as their
top concern in 2003 and 2004, ahead of other traditional priorities such as crime and education.
In February 2005, the Minnesota Department of Transportation issued along-term metro area
congestion forecast in which the mast aggressive level of future transportation funding, out of a
range of possible funding, would only maintain the current level of freeway congestion.
These conditions, combined with high consumer gasoline prices, are expected to create a strong
demand for housing located more centrally within the metropolitan area, with its close proximity
to the Minneapolis downtown area ~4 miles}, the City of Columbia Heights offers many people
excellent opportunities to live close to where they work.
9
However, as an older, fully developed, inner-ring suburb of the City of Minneapolis, the
management and residents of the City of Columbia Heights are faced with the problems of an
aging infrastructure and increased crime statistics. The City Council and City Management are
taking a proactive approach to dealing with these concerns, and they currently have a number of
initiatives in progress to address them. Some of these are described below.
LANG-T~RNI FINANCIAL PLANNING
By Council resolution, a portion of the unreserved fund balance in the general fund is designated
for working capital purposes, This is targeted at 45% of budgeted general fund expenditures for
the following year. At December 31, 2005, there was sufficient unreserved fund balance in the
general fund to designate for working capital purposes an amount equal to 40% of budgeted
general fund expenditures for 2006.
The City has a planned Street Rehabilitation Program including, as needed, water mains, sanitary
sewer and storrr~ sewer improvements. The plan divides the City into seven street rehabilitation
zones and calls far approximately one zone to be rehabilitated every one to two years. Most of
the cost of street rehabilitation is charged to the benefiting properties in the form of special
assessments. In some cases, the City issues bands to initially f nonce the project, repaying the
bonds with special assessments as the assessments are collected over a number of years.
The City is exploring options for moving its largest municipal liquor operation from a leased
space to a city-owned building, in order to reduce occupancy costs aver the long-term. During
2004, the City obtained an analysis by an outside consultant indicating sufficient demand far
community center facilities located within the City to support two to four gy~nraasiums beyond
those currently available in the area.
CURRANT MA~C~R INITIATIVES
1 } Facilitating the redevelopment by a private developer of a former K~Mart site on Central
Avenue into housing. when completed, the project will consist of 231 units of housing.
Through 2005, building permits were issued for the first 73 units. Some of the pre-
development costs incurred by the City for this project have bee~lwill be reimbursed by
the developer. Qualified costs incurred by the developer will be reimbursed from future
tax increment collections for the property.
2} Pursuing improvement opportunities in the City's Heritage Heights Neighborhood, also
known as the Sheffield Neighborhood. This area is adjacent to the project listed above.
This has been an area of relatively higher crirr~e statistics for the City. In 2005, the City
allocated additional funds for increased com~.munity policing direct contacts with
residents, etc.} in this area with good results. This police funding was continued in the
2006 budget. In December 2005, the City Council designated $70D,000 of fund balance
in a non~major capital project fund for use in redevelopment of this area.
10
3~ Facilitating the redevelopment by a private developer of a former industrial park site,
located south and west of the City's largest park, into housing. when completed, this
project will cover approximately 3o acres with approximately 5~0 units of housing and a
re-design of the adjacent street into a parkway, Through 2~~5, building permits were
issued for the first 17 units. Same of the pre-development costs incurred by the City for
this pro ject have beenlwill be reimbursed by the developer, Qualified costs incurred by
the developer will be reimbursed from future tax increment collections far the property.
4} In Z0~5, the City installed a reverse ~ 11 telephone system that was paid for with a federal
grant. This system enables the City's public safety off coals to send out automated
telephone calls to notify residents or emergency situation, upcoming procedures, etc.
AWARD AND AK.I~C~~wLED~EMENTS
The Government Finance Ufficers' Association ~GFOA} awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Columbia Heights, Minnesota for its
Comprehensive Annual Financial Report for the year ended December 31, 2004, The Certificate
of Achievement is a prestigious national award that recognizes conformity with the highest
standards for preparation of state and local government financial reports.ln 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 Certif cafe of Achievement is valid for a period of one year only. VUe believe our current
report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to the GF4A.
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.
1n closing, without the leadership and support of the City Manager and City Council, preparation
of this report would not have been possible.
Sincerely,
C.~,~
William J. Elrite
,
Finance Director
11
12
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Columbia Heights,
Minnesota
For its Gornprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2a~4
A Certificate of Achievement f'or Excellence in Financial
Reporting is presented by the Gavern~nent Finance ~ffcers
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,
`~ ~€1Hl~Eq S1~1fS' ~,
C~H#~~ ~
~, S~o~~~~,~H ~~
President
gp~,~~r,~~~``r
~NfCA~iQ
•
executive Director
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14
II. FINANCIAL SECTION
15
16
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPGRT
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
we have audited the accompanying f nancial 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, 2005
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. fur responsibility is to express opinions on these f nancial
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 f nancial 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
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City of Columbia Heights, Minnesota's internal control
over financial reporting. Accordingly, we express no such opinion. 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, 2005, 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.
~n accordance with Government Auditing Standards, we have also issued our report dated
March 17, 2006 on our consideration of the City of Columbia Heights, Minnesota's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that
4810 White Bear Parkway White Bear lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hlbtr.com
1303 South Frontage Road Suite 13 Hastings, ~Ilinnesata 55033 651 480 4990 651 426 6004 Fax
HLB Tautges Redpath,Ltd. is a member of ~ Imernational, a worldwide organization of aeeou~~cing firms and business advisors,
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report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government auditing Standards and should be considered in
assessing the results of our audit.
The Management's Discussion and Analysis and the budgetary comparison information as
listed in the table of contents, are not a required part of the basic financial statements but are
supplementary information required by accounting principles accepted in the United States
of America. we have applied certain limited procedures, which consisted principally of
inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no
opinion on it.
Gur 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. Gff ce of
Management and Budget Circular A-133, Audits of States, focal Governments, and ~Von-
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 f nancial 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.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
March 17, 2006
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~V
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, 2005. 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 $51,295,113 net assets. Of this amount, unrestricted net assets of $25,157,182 or
49% may be used to meet the government's ongoing obligations to citizens and creditors in
accordance with the City's fund designations and fiscal policies.
During 2005, the City's total net assets increased by $793,230 or 1.6% over the prior year total.
The City's governmental activities provided 80% of this increase; business-type activities
provided only 20% of the increase.
As of the close of the current fiscal year, the City of Columbia Heights' governmental funds
reported combined ending fund balances of $18,331,572. This is a decrease of $3,842,030 from
the prior year. As of the close of the current fiscal year, the portion of combined ending
governmental fund balances that was both unreserved and undesignated was a (deficit) of
($1,476,572).
At the end of the current fiscal year, the general fund balance of $3,3 50,128 included $10,484
reserved for prepayments, $3,339,644 designated for working capital and $0 unreserved
un esignate .
During 2005, the City's total bonded debt decreased by $1,714,704 to an end of year total of
$5,810,000. This was primarily due to refunding a 1990 issue of general obligation tax
increment bonds in 2005, using the proceeds from general obligation tax increment refunding
bonds issued in 2004.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Columbia
Heights' basic financial statements. The City's basic financial statements are comprised of three
components: l) 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.
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Management's Discussion and Analysis
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of 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.
The statement of activities presents information showing how the City's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Columbia
Heights that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of the
City of Columbia Heights include general government, public safety, public works, culture and
recreation and community development. The business-type activities of the City of Columbia
Heights include water, sanitary sewer, refuse, storm sewer and liquor operations.
The government-wide financial statements are presented as statements 1 and 2 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City of
Columbia Heights, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City of
Columbia Heights can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the City's near term
financial decisions. Both the governmental fund balance sheet and governmental fund statement
22
Management's Discussion and Analysis
of revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
For the fiscal year ended December 31, 2005, the City of Columbia Heights had nine individual
major governmental funds. Information is presented separately in the governmental fund balance
sheet and in the governmental fund statement of revenues, expenditures, and changes in fund
balances for the general fund, Anoka County community development block grant fund,
Economic Development Authority administration fund, capital appreciation bonds of 1990 fund,
municipal state aid street fund, capital improvements-development fund, capital improvements-
general government buildings fund, capital equipment replacement-general government fund,
and capital improvements-PIR fund, all of which are considered to be major funds.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-maj or 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 certain
special revenue funds listed in the notes to the financial statements. A budgetary comparison
statement has been provided for these funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are presented as statements 3 through 5 of this
report.
Proprietary funds. The City of Columbia Heights maintains two different types of proprietary
funds. Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The City of Columbia Heights uses enterprise
funds to account for its water, sewer, refuse, storm sewer, and liquor operations. Internal service
funds are an accounting device used to accumulate and allocate costs internally among the City-
of Columbia Heights' various functions. The City of Columbia Heights uses internal service
funds to account for its central garage, data processing, insurance, and compensated absences
services. Because the central garage, insurance and compensated absences services
predominately benefit governmental rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements. And also, because
the data processing services predominately benefit the business-type functions, it has been
included within the business-type activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the water, sewer, refuse, storm sewer and liquor operations, all of which are
considered to be maj or 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. Individual fund data for the internal service funds is provided in the form of
combining statements elsewhere in this report.
23
Management's Discussion and Analysis
The basic proprietary fund financial statements are presented as statements 6 through 8 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City of Columbia
Heights' own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The basic fiduciary fund financial statement is presented as statement 9 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements.
Other information. The combining statements referred to earlier in connection with non-major
governmental funds and internal service funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules are presented as statements 13 through 71 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 $51,295,113
at the close of the most recent fiscal year.
A portion of the City of Columbia Heights' net assets, $23,460,223 or 46%, 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. It should be
noted that, although net assets invested in capital assets are reported net of related debt, the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
A portion of the City of Columbia Heights' net assets represents resources that are subj ect to
external restrictions on how they maybe used. The remaining balance of unrestricted net assets,
$25,157,182 or 49%, maybe used to meet the City's ongoing obligations to citizens and
cre hors.
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.
24
Management's Discussion and Analysis
Governmental Activities Business-Type Activities Totals
2005 2004 2005 2004 2005 2004
Current and other assets $24,237,559 $27,470,749 $7,904,106 $8,240,656 $32,141,665 $35,711,405
Capital assets 20,317,016 19,214,012 8,953,206 8,661,924 29,270,222 27,875,936
Total assets $44,554,575 $46,684,761 $16,857,312 $16,902,580 $61,411,887 $63,587,341
Long term liabilities
outstanding $4,250,618 $5,650,222 $2,319,174 $2,568,343 $6,569,792 $8,218,565
Other liabilities 2,693,196 4,053,480 853,786 813,413 3,546,982 4,866,893
Total liabilities $6,943,814 $9,703,702 $3,172,960 $3,381,756 $10,116,774 $13,085,458
Net assets
Invested in capital assets
net of related debt $16,727,724 $14,328,916 $6,732,499 $6,175,547 $23,460,223 $20,504,463
Restricted 2,302,056 2,285,305 375,652 337,389 2,677,708 2,622,694
Unrestricted 18,580,981 20,366,838 6,576,201 7,007,888 25,157,182 27,374,726
Total net assets $37,610,761 $36,981,059 $13,684,352 $13,520,824 $51,295,113 $50,501,883
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET ASSETS
Governmental Activities Business-Type Activities Totals
2005 2004 2005 2004 2005 2004
Revenues:
Program revenues:
Charges for services $3,732,719 $2,293,077 $11,279,462 $11,305,675 $15,012,181 $13,598,752
Operating grants and
contributions 956,899 825,858 46,170 46,635 1,003,069 872,493
Capital grants and
contributions 2,348,512 2,619,879 - 113,407 2,348,512 2,733,286
General revenues:
Property taxes 5,662,368 4,989,205 - - 5,662,368 4,989,205
Tax increment collections 1,088,267 972,208 - - 1,088,267 972,208
Grants and contributions not - - - -
restricted to specific programs 1,768,216 2,337,386 - - 1,768,216 2,337,386
Unrestricted investment earnings 471,142 729,456 118,413 215,062 589,555 944,518
Gain (loss) on disposal of
capital assets 492,293 - - - (492,293 -
Totalrevenues 15,535,830 14,767,069 11,444,045 11,680,779 26,979,875 26,447,848
Expenses:
General government 1,681,229 1,669,721 - - 1,681,229 1,669,721
Public safety 4,052,905 3,640,970 - - 4,052,905 3,640,970
Public works 2,380,673 2,041,254 - - 2,380,673 2,041,254
Culture and recreation 2,017,816 1,904,848 - - 2,017,816 1,904,848
Community development 4,860,222 2,239,213 - - 4,860,222 2,239,213
Interest onlong-term debt 288,532 387,544 - - 288,532 387,544
Water - - 1,717,445 1,637,316 1,717,445 1,637,316
Sewer - - 1,333,420 1,219,200 1,333,420 1,219,200
Refuse - - 1,147,313 1,321,730 1,147,313 1,321,730
Storm sewer - - 162,915 158,374 162,915 158,374
Liquor - - 6,544,175 6,593,578 6,544,175 6,593,578
Total expenses 15,281,377 11,883,550 10,905,268 10,930,198 26,186,645 22,813,748
Increase (decrease) in
net assets before transfers 254,453 2,883,519 538,777 750,581 793,230 3,634,100
Transfers 375,249 377,948 (375,249) (377,948) - -
Increase in net assets 629,702 3,261,467 163,528 372,633 793,230 3,634,100
Net assets -January 1 36,981,059 33,719,592 13,520,824 13,148,191 50,501,883 46,867,783
Net assets -December 31 $37.610.761 $36.98L059 $13.684.352 $13.520.824 $SL295.113 $SO.SOL883
25
Management's Discussion and Analysis
Governmental activities
In 2005, governmental activities increased the City of Columbia Heights' net assets by $629,702.
In the prior year, governmental activities increased the City of Columbia Heights' net assets by
$3,634,100. In broad terms, the changes that combined to yield this much smaller increase in net
assets for 2005 were increases in expenses for most governmental functions other than general
government, a decrease in special assessment revenue and a decrease in general revenues. Key
elements of these broad changes were as follows:
• Expenses for the public safety function for 2005 increased by $411,935 or 11%
from the prior year. Personnel costs accounted for $188,3 81 of this increase.
This reflects an average of one additional police officer and one additional
firefighter for 2005 compared to 2004, plus cost of living and seniority increases
required under personnel contracts. (Note, cost of living and seniority increases
occurred in all functional areas of the City, not just public safety.)
In addition, all public safety grants received in 2005 were used for operating items
for which expense is recognized in the current year. Whereas in 2004, $225,000
of public safety grants were used for a capital item for which expense is
recognized over several years under the accrual method.
• Expenses for the public works function for 2005 increased by $271,673 or 17%
from the prior year. This includes an increase of $72,317 for the tree and street
departments within public works. Much of this was debris management expense
incurred as a result of a major storm on September 21, 2005.
Personnel costs for engineering are charged to both capital projects for which
expense recognition is spread over multiple years under the accrual method, and
to noncapital projects/activities for which all expense is recognized in the current
year. The proportion of engineering personnel costs charged to noncapital
projects in 2005 increased compared to 2004. This resulted in $88,137 more in
engineering personnel expenses being recognized in 2005 than in 2004, although
total engineering payroll only increased by the contract increases mentioned
above.
On the accrual basis, special assessment revenue from street improvements
decreased by $912,279 or 87% in 2005 compared to the prior year. There were
no significant new special assessments adopted for 2005. Whereas there were
two major special assessment levies adopted for 2004.
• In 2004, a number of factors combined to create an abnormal situation in which
community development program revenues actually exceeded community
development expenses by $207,649. This anomaly did not repeat in 2005, and the
community development function returned to the typical pattern for governmental
activities, wherein program-specific revenues do not cover all the costs of
26
Management's Discussion and Analysis
governmental activity, thereby creating the need for general revenues such as
property taxes and state aid. For 2005, expenses for the community development
function exceeded program revenues by $265,016. Causes of this change
included, among other things, a building permit issued in 2004 for $187,3 5 8 for a
new water treatment plant owned by the City of Minneapolis, and circumstances
that delayed recognition of certain developer incentives (TIF pay-as-go payments)
until 2005.
It should be noted that although total community development expenses increased
in 2005 by a dramatic $2,688,815 or 117% from the prior year, this was due
mainly to an increase in direct project expenses for a large redevelopment proj ect
in the City's Huset Park area, and that these direct project expenses were offset by
related program revenues. In short, although this particular proj ect significantly
increased the volume of activity, it did not have a significant impact on net assets
for 2005.
General revenues from governmental activities changed in 2005 from the prior
year for the following reasons:
^ A decrease in investment income of $258,314 compared to the prior year,
due in large part to a temporary change in the fair value of investments.
^ A loss on disposal of capital assets of $492,293.Of this amount, $430,101
was to reduce the carrying amount of a former Burger King property held
for resale, down to only the cost of the land, to reflect the 2005 removal of
a building from the property.
^ A decrease of $544,730 in state aid to local government.
^ $24,440 of other decreases in state revenues.
^ An increase in property taxes of $673,163 to offset cumulative reductions
in state aid.
^ An increase in tax increment collections of $116,059.
These changes combined to produce a decrease in general revenues from
governmental activities of $530,555 or 6% for 2005 compared to the prior year.
27
Management's Discussion and Analysis
Below are graphs providing breakdowns of the governmental activities revenues by source and
governmental activities expenditures by function:
Governmental Activities - 2005 Revenues
Tax increment
collections 7%
Other revenues 11
Charges for services 24%
Property taxes 37%
Program-specific grants and
contributions 21
Governmental Activities - 2005 Expenses
Interest on
long-term
General government
Community development debt 2% 11
32% Public safety
26%
Culture and recreation
13% Public works
16%
28
Management's Discussion and Analysis
Business-Type Activities
Business-type activities increased net assets by $163,528 in 2005. In the prior year, business-
type activities increased the City of Columbia Heights' net assets by $372,633. Key elements of
this smaller increase for the current year were as follows:
• In 2004, the City received a capital grant for $113,407 for storm sewer
improvements; this revenue did not recur in 2005.
• The City renegotiated its vendor contract for refuse hauling/disposal, and refuse
expenses decreased in 2005 by $174,417 or 13% compared to the prior year, but
this was offset by increases in water and sewer expenses for 2005.
• There was decrease in investment income of $96,619 for 2005 compared to the
prior year, due in large part to a temporary change in the fair value of
investments.
Below are graphs providing breakdowns of business-type activities revenues by source and
business-type activities expenditures by function:
Business-Type Activities - 2005 Revenues
Other revenues 1%
Charges for services
99%
29
Management's Discussion and Analysis
Business-Type Activities - 2005 Expenses
Liquor 58% °
Water 17 /o
Sever 11
Refuse 12%
Storm sewer
2%
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 $18,331,572. Of this total, $16,133,204 or 88% is unreserved
fund balance. The remaining $2,198,368 of fund balance is reserved because it has already been
committed as follows:
A. $13,467 to provide for prepaid items.
B. $1,280,434 to provide for real estate held for resale.
C. $904,467 for program expenditures required under by grants or other funding contracts.
30
Management's Discussion and Analysis
The general fund is the chief operating fund of the City. Fund balance in the general fund
decreased by a total of $789,982 in 2005, which is roughly the amount about by which general
fund balance increased in the prior year. Several elements of this change in the general fund
balance are the same as or related to the changes already detailed above in the analysis of
governmental activities. These are:
• A $626,650 decrease in intergovernmental revenues to the general fund, primarily
state aid to local government, was offset by a $623,866 increase in property tax
revenue to the general fund.
• General fund license and permit fees for 2005 decreased by $161,947, compared
to the prior year. As mentioned above, 2004 included the one-time item of a
building permit fee for a new water treatment plant owned by the City of
Minneapolis.
• The general fund's share of the decrease in total annual investment income
described above was $69,740.
• General fund expenditures for public safety increased by $212,508 from the prior
year, chiefly for the personnel changes described above.
• General fund expenditures for public works increased by $87,948 from the prior
year, which includes the storm event costs mentioned above.
In addition, transfers out from the general fund to other funds increased from $351,366 for 2004
to $1,342,497 for 2005. The main element of this increase was a 2005 transfer of $700,000
from the general fund to the nonmaj or funds for redevelopment in the City's Heritage Heights
Neighborhood; also know as the Sheffield area.
The Anoka County CDBG fund decreased by $13,263.
The Economic Development Authority administration fund decreased by $403,110. This was
primarily due to the decrease described above in the carrying value of former Burger King
property held for resale.
The capital appreciation bonds of 1990 fund decreased in 2005 by $2,676,359. This was due to
refunding in 2005 the 1990 bonds, using the proceeds from refunding bonds issued in 2004.
The municipal state aid street fund increased by $40,757 due to 2005 expenditures and transfers
out for construction and maintenance on state aid streets being somewhat less than
intergovernmental revenue received in 2005.
The capital improvement -development fund increased by $82,031. This resulted primarily
from an $180,000 transfer in from the general fund to staff ongoing redevelopment projects,
31
Management's Discussion and Analysis
offset by redevelopment expenditures. It should be noted that due to the large redevelopment
project mentioned above in the analysis of governmental activities, this fund had a dramatic
increase in the volume of revenues and expenditures for 2005 compared to the prior year, but
that these changes largely offset each other, yielding little net effect on fund balance. Similarly,
the $609,509 sale of capital assets included in this fund for 2005 reflects the sale by the City of
redevelopment property at the same price for which the City purchased the property in 2005.
The capital improvements -general government buildings fund decreased by $331,730. The
main element in this decrease was the expenditure of $453,541 for the renovation of the City's
Municipal Service Center, which includes space for City's central garage, public works function
and parks department.
The capital equipment replacement general government fund increased by $73,351. This resulted
from investment income and transfers in from the general fund and the liquor fund being greater
than the City's share of capital equipment charged to this fund in 2005, in accordance with the
city's long-range capital equipment replacement plan.
The capital improvements PIR fund decreased in 2005 by $638,392 to create an end of year fund
balance (deficit) of ($550,627). This was caused by a pattern, in both the current and prior year,
of expending current resources for street improvements that will be paid for by special
assessments collected over several future years. To finance this pattern, historically the City has
issued special assessment improvement bonds approximately every three years. The last time the
City issued such bonds was 2003.
The nonmajor governmental funds increased by $814,667 in 2005. This was mainly the result of
the $700,000 transfer in from the general fund mentioned above for redevelopment in the City's
Heritage Heights Neighborhood.
Proprietary funds. The City of Columbia Heights' proprietary funds provide the same type of
information found in the government-wide financial statements for business-type activities, but
in more detail.
The unrestricted net assets (deficit) in the respective proprietary funds are water ($855,219);
sewer $2,783,651; refuse $416,296; storm sewer ($103,159) and liquor $3,259,713.
The water, refuse, storm sewer and liquor funds had increases in net assets in 2005 of $84,812;
$19,738; $106,832 and $17,785 respectively. In 2005, sewer fund net assets (decreased) by
($208,441).
Other factors concerning the finances of the proprietary funds are addressed above in the analysis
of the City's business-type activities.
32
Management's Discussion and Analysis
Budgetary Hi~hli~hts
General Fund
The changes between the original adopted 2005 budget and the final amended 2005 budget
consiste o
• A reclassification of $572,742 from tax revenue to intergovernmental revenue -market
value homestead credit. In the State of Minnesota, a portion of what a city adopts for its
annual property tax levy is paid to the city in the form of a market value homestead
credit. At the time the levy is required to be adopted under state law, the portion that will
ultimately take the form of a market value homestead credit is not estimable.
An increase of $36,683 to budgeted police personnel expenditures, and an equal increase
to budgeted revenue in the intergovernmental revenue (grants) and charges for services
line items, to reflect additional police services contracted for by private entities and other
governments after the adoption of the original budget.
An increase of $25,000 to budgeted police personnel expenditures, with no corresponding
increase in budgeted revenue, for additional community policing in the City's Heritage
Heights Neighborhood.
An increase of $880,000 in budgeted transfers out to other funds, to reflect the council
resolution for the significant redevelopment transfers described above in the analysis of
the governmental funds.
In 2005, actual general fund revenues exceeded budget by the relatively immaterial amount of
$17,599 or only 0.2%. There were no individual line items in the general fund for which the
variance between actual revenue and budgeted revenue was of particular significance.
Actual expenditures for the general fund in 2005 were $141,742 less than budgeted. This
variance included the following elements:
Actual expenditures were under budget for the general government function by $84,770.
This is the aggregate result of the small positive variances almost all of the departments
within general government.
Within public safety, there were offsetting variances between police and fire for 2005.
The one additional firefighter for 2005, mentioned above in the analysis of governmental
activities, was not included in the 2005 budget. Conversely, there was one police officer
position budgeted for in 2005 that was not filled in 2005.
• Actual expenditures from the general fund were over budget for the public works
33
Management's Discussion and Analysis
function by $67,032 in 2005. Many of the costs of the September 2005 storm event
described above were not included in the 2005 budget.
Park and recreation actual expenditures from the general fund were under budget by
$96,768; primarily in personnel costs for park maintenance. This reflects one budgeted
position that was unfilled in 2005 and a second position for which the incumbent was on
military leave for six months of 2005.
Additional budgetary comparison for the general fund is provided in Statement 10 of this
mancla report.
Capital Asset and Debt Administration
Capital assets. The City of Columbia Heights' investment in capital assets for its governmental
and business-type activities as of December 31, 2005, amounts to $29,270,222 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. Note that real estate that is only held for resale, such
as the previously mentioned former Burger King property, is not included here in the analysis of
capital assets used in governmental and business-type activities.
During 2005, the dollar amount of construction in progress more than doubled, increasing from
$2,159,309 at January 1 to $4,516,098 at December 31. This was the only major capital asset
event in 2005. The major construction projects in progress at yearend are listed below:
• The Zone 7 street rehabilitation project had construction in progress at December 31,
2005 of $1,974,247. This project began in 2002.
The Huset Parkway street rehabilitation proj ect had construction in progress at December
31, 2005 of $1,761,728. This project began in 2004.
• The Municipal Service Center renovation project had construction in progress at
December 31, 2005 of $453,541. This project began in 2005.
34
Management's Discussion and Analysis
City of Columbia Heights' Capital Assets
(Net of Depreciation)
Beginning Ending
Balance Additions Deletions Balance
Governmental activities:
Capital assets -not depreciated:
Land $3,103,134 $260,000 $ - $3,363,134
Construction in progress 1,764,061 1,838,182 (20,154) 3,582,089
Total capital assets not being depreciated 4,867,195 2,098,182 (20,154) 6,945,223
Capital assets -being depreciated:
Buildings and structures 8,509,221 86,200 - 8,595,421
Improvements 2,991,821 - - 2,991,821
Office furniture and fixtures 307,506 83,588 (46,985) 344,109
Machinery and equipment 5,270,828 155,547 (128,346) 5,298,029
Infrastructure 15,448,855 - - 15,448,855
Total capital assets being depreciated 32,528,231 325,335 (175,331) 32,678,235
Less accumulated depreciation for:
Buildings and structures 6,637,935 161,771 - 6,799,706
Improvements 2,022,207 63,442 - 2,085,649
Office furniture and fixtures 236,534 33,836 (46,985) 223,385
Machinery and equipment 2,894,728 393,643 (128,346) 3,160,025
Infrastructure 6,390,010 647,667 - 7,037,677
Total accumulated depreciation 18,181,414 1,300,359 (175,331) 19,306,442
Capital assets being depreciated -net 14,346,817 (975,024) 0 13,371,793
Governmental activities capital assets -net 19,214,012 1,123,158 (20,154) 20,317,016
Business-type activities:
Capital assets -not depreciated:
Land $340,893 $ - $ - $340,893
Construction in progress 395,248 539,155 (394) 934,009
Total capital assets not being depreciated 736,141 539,155 (394) 1,274,902
Capital assets -being depreciated:
Buildings and structures 660,745 - - 660,745
Improvements 12,242,193 - - 12,242,193
Office furniture and fixtures 81,014 - - 81,014
Machinery and equipment 1,306,590 207,143 (26,585) 1,487,148
Total capital assets being depreciated 14,290,542 207,143 (26,585) 14,471,100
Less accumulated depreciation for:
Buildings and structures 475,659 22,177 - 497,836
Improvements 4,943,927 320,452 - 5,264,379
Office furniture and fixtures 81,014 - - 81,014
Machinery and equipment 864,159 110,928 (25,520) 949,567
Total accumulated depreciation 6,364,759 453,557 (25,520) 6,792,796
Capital assets being depreciated -net 7,925,783 (246,414) (1,065) 7,678,304
Business-type activities capital assets -net 8,661,924 292,741 (1,459) 8,953,206
Total capital assets -net $27,875,936 $1,415,899 ($21,613) $29,270,222
Additional information on the City of Columbia Heights' capital assets can be found in Note 4 to
the financial statements.
35
Management's Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City of Columbia Heights had total
bonded debt outstanding of $5,810,000. This entire amount was general obligation debt backed
by the full faith and credit of the City of Columbia Heights. In addition, there are specific
revenue sources pledged to repay each of the various components of this debt. Tax increment
collections are pledged for the repayment general obligation tax increment debt of $1,985,000.
Special assessments are pledged for the repayment of general obligation improvement debt of
$1,604,292. Utility revenues are pledged for the repayment of general obligation revenue debt
of $2,220,708.
In addition to bonded debt, at year end there was long-term debt in the amount of $759,792 for
compensated absences.
City of Columbia Heights' Long-Term Debt
Governmental Activities
2~O5 2~~4
2005 2004
$ - $ -
2,220,708 2,486,377
9R 4hh R 1 9hh
2005 2004
$1,985,000 $3,264,704
1,604,292 1,773,623
2,220,708 2,486,377
759 797. h9~ Rhl
Business-Type Activities
Totals
General obligation tax increment bonds $1,985,000 $3,264,704
General obligation improvement bonds 1,604,292 1,773,623
General obligation revenue bonds -
Compensated absences 661,326 611,895
$4,250,618 $5,650,222 $2,319,174 $2,568,343 $6,569,792 $8,218,565
During 2005, the City's total bonded debt decreased by $1,714,704. This was primarily due to
refunding a 1990 issue of general obligation tax increment bonds in 2005 using the proceeds
from general obligation tax increment refunding bonds issued in 2004. No bonds were issued in
2005.
The City of Columbia Heights maintains an Al bond rating from Moody's, based on the City's
healthy financial margins, average debt levels and continued tax base growth.
State statute limits the net amount of certain general obligation debt a Minnesota city may issue
to 2% of the taxable market value of property within the city's taxing jurisdiction. The current
debt limitation under this statute for the City of Columbia Heights is $21,831,836. However,
none of the City's debt outstanding at the end of the current fiscal year is of the type counted
within the statutory limitation.
Additional information on the City of Columbia Heights' long-term debt can be found in Note 7
to the financial statements.
36
Management's Discussion and Analysis
Economic Factors and Next Year's Budget
The average annual unemployment rate for Anoka County for 2005, which includes the City of
Columbia Heights, was 3.8%, which is a decrease from a rate of 3.9% a year ago. This compares
to the state's 2005 annual average unemployment rate of 4.0% and the national 2005 annual
average rate of 5.1 %.
Inflationary trends in the region compare favorably to national trends.
The City has been notified that in 2006 the state aid to local government that it will receive will
be approximately $30,000 less than was received in 2005.
All of these factors were considered in preparing the City of Columbia Heights' budget for the
2006 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 55421-3 878.
37
38
BASIC FINANCIAL STATEMENTS
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2005
Statement 1
Page 1 of 2
Primary Government
Governmental Business-Type Totals
Assets Activities Activities 2005 2004
Current assets:
Cash and investments $19,596,338 $4,102,448 $23,698,786 $27,097,645
Receivables:
Accounts (net of allowance for uncollectibles) 1,340,468 997,528 2,337,996 1,246,886
Special assessments -current 237,100 - 237,100 358,447
Taxes 242,074 - 242,074 177,441
Interest 150,623 33,851 184,474 218,432
Loans 541 - 541 3,620
Due from other governmental units -current 483,551 6,873 490,424 853,941
Due from other agencies - - - 2,951
Internal balances (864,075) 864,075 - -
Prepayments 72,111 83,636 155,747 160,760
Inventory - at cost 43,395 1,683,396 1,726,791 1,694,261
Real estate held for resale 1,957,136 - 1,957,136 2,494,485
Total current assets 23,259,262 7,771,807 31,031,069 34,308,869
Noncurrent assets:
Special assessments receivable -noncurrent 978,297 - 978,297 1,246,751
Due from other governmental units -noncurrent - 132,299 132,299 155,785
Capital assets (net of accumulated depreciation):
Land 3,363,134 340,893 3,704,027 3,444,027
Buildings 1,795,715 162,909 1,958,624 2,056,372
Improvements other than buildings 906,172 6,977,814 7,883,986 8,267,880
Office furniture and fixtures 120,724 - 120,724 70,972
Machinery and equipment 2,138,004 537,581 2,675,585 2,818,531
Infrastructure 8,411,178 - 8,411,178 9,058,845
Construction in process 3,582,089 934,009 4,516,098 2,159,309
Total noncurrent assets 21,295,313 9,085,505 30,380,818 29,278,472
Total assets 44,554,575 16,857,312 61,411,887 63,587,341
The accompanying notes are an integral part of these financial statements.
40
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2005
Statement 1
Page 2 of 2
Primary Government
Governmental Business-Type Totals
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Contracts payable -retained percentage
Due to other governmental units
Unearned revenue
Accrued interest payable
Deposits
Compensated absences payable -current
Bonds payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences payable -noncurrent
Bonds payable -noncurrent
Total noncurrent liabilities
Total liabilities
Net assets
Invested in capital assets - net of related debt
Restricted for:
Debt service
Other debt covenant requirements
Tax increment purposes
Grant programs
Unrestricted
Total net assets
Activities Activities 2005 2004
$1,326,674 $532,010 $1,858,684 $942,188
240,232 67,499 307,731 301,700
130,869 - 130,869 368,967
229,671 220,665 450,336 182,922
694,502 - 694,502 774,879
37,879 33,612 71,491 2,264,715
33,369 - 33,369 31,522
25.263 3,762 29,025 20,748
3,500,732 1,145,275 4,646,007 6,602,344
636,063 94,704 730,767 673,113
2,807,019 1,932,981 4,740,000 5,810,001
3,443,082 2,027,685 5,470,767 6,483,114
6,943,814 3,172,960 10,116,774 13,085,458
16,727,724 6,732,499 23,460,223 20,504,463
1,006,668 375,652 1,382,320 1,264,454
10,534 - 10,534 27,801
390,921 - 390,921 498,371
893.933 - 893.933 832.068
$37,610,761 $13,684,352 $51,295,113 $50,501,883
The accompanying notes are an integral part of these fmancial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2005
Charges For
Expenses Services
Functions/Pro r.~ ams
Primary government:
Government activities:
General government $1,681,229 $228,740
Public safety 4,052,905 423,450
Public works 2,380,673 81,607
Culture and recreation 2,017,816 250,380
Community development 4,860,222 2,748,542
Interest on long-term debt 288,532 -
Totalgovernment activities 15,281,377 3,732,719
Business-type activities:
Water 1,717,445 1,887,990
Sewer 1,333,420 1,145,810
Refuse 1,147,313 1,256,180
Storm sewer 162,915 274,907
Liquor 6,544,175 6,714,575
Total business-type activities 10,905,268 11,279,462
Total primary government $26,186,645 $15,012,181
The accompanying notes are an integral part of these fmancial statements.
42
Statement 2
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Operating Capital Primary Government
Grants and Grants and Governmental Business-Type Totals
Contributions Contributions Activities Activities 2005 2004
$79
557,983
178,311
76,405
144,121
956,899
46,170
46,170
$1,003,069
$ - ($1,452,410) $ - ($1,452,410) ($1,466,377)
- (3,071,472) - (3,071,472) (2,491,294)
599,917 (1,520,838) - (1,520,838) (531,999)
46,052 (1,644,979) - (1,644,979) (1,542,977)
1,702,543 (265,016) - (265,016) 275,455
- (288,532) - (288,532) (387,544)
2,348,512 (8,243,247) 0 (8,243,247) (6,144,736)
- - 170,545 170,545 133,837
- - (187,610) (187,610) (199,668)
- - 155,037 155,037 (20,084)
- - 111,992 111,992 239,256
- - 170,400 170,400 382,178
0 0 420,364 420,364 535,519
$2,348,512 ($8,243,247) $420,364 ($7,822,883) ($5,609,217)
General revenues:
Property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain (loss) on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets -beginning
Net assets -ending
$5,662,368 $ - $5,662,368 $4,989,205
1,088,267 - 1,088,267 972,208
1,768,216 - 1,768,216 2,337,386
471,142 118,413 589,555 944,518
(492,293) - (492,293) -
375,249 (375,249) - -
8,872,949 (256,836) 8,616,113 9,243,317
629,702 163,528 793,230 3,634,100
36,981,059 13,520,824 50,501,883 46,867,783
$37,610,761 $13,684,352 $51,295,113 $50,501,883
The accompanying notes are an integral part of these fmancial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2005
Assets
Cash and investments
Cash and investments with fiscal agent
Receivables:
Accounts
Special assessments
Taxes
Interest
Loans
Due from other governmental units
Interfund receivable
Prepayments
Real estate held for resale
Total assets
Liabilities and Fund Balances
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 balances:
Reserved for:
Prepayments
Real estate held for resale
Program expenditures
Unreserved:
Designated, reported in:
General fund
Special revenue funds
Debt service funds
Capital projects funds
Undesignated, reported in:
Special revenue funds
Debt service funds
Capital projects funds
Total fund balances
Total liabilities and fund balances
Economic
Anoka Development Capital Municipal
County Authority Admin Appreciation State Aid
General CDBG (Component Unit) Bonds of 1990 Street Fund
$1,868,335 $31,986 $87,059 $4,660 $ -
- 57,045 - - -
30,789 - - - -
206,730 - 8,546 - -
36,017 - 281 2,978 -
63,725 - - - 39,431
1,753,836 - - - -
$3,994,204 $765,733 $1,081,020 $7,638 $39,431
$201,844 $ - $ - $ - $1,022
193,880 - - - 667
717 - - - -
102,144 70,309 - - -
- 60,621 1,400,000 - 133,806
145,491 676,702 6,081 - -
- 1,000 - - -
644,076 808,632 1,406,081 0 135,495
10,484 - - - -
- - 985,134 - -
3,339,644 - - - -
- - - 7,638 -
- (42,899) (1,310,195) - -
- - - - (96, 064)
3,350,128 (42,899) (325,061) 7,638 (96,064)
$3,994,204 $765,733 $1,081,020 $7,638 $39,431
The accompanying notes are an integral part of these financial statements.
44
Statement 3
Capital Capital
Capital Improvements Equipment Capital Other Intra Totals
Improvements General Gov't Replacement Improvements Governmental Activity Governmental
Development Buildings General Gov't PIR Fund Funds Eliminations Funds
$148,014 $3,386,171 $4,796,312 $370,966 $6,594,438 $ - $17,287,941
- - - - - - 57,045
1,266,175 - - 1,960 38,543 - 1,337,467
- - - 1,215,397 - - 1,215,397
- - - - 26,798 - 242,074
- 25,794 36,153 - 35,841 - 137,064
- - - - 541 - 541
264,111 - - - 116,284 - 483,551
800,000 - - - 631,495 (3,185,331) -
_ _ _ _ ~ QQ2 _ 27 '7SS
$2,723,487 $3,411,965 $4,832,465 $1,617,323 $7,468,036 ($3,185,331) $22,755,971
$379,466 $330,325 $ - $88,068 $289,978 $ - $1,290,703
2,009 1,718 - 4,406 32,228 - 234,908
7,713 38,118 - 82,688 1,633 - 130,869
9,150 - - - 48,068 - 229,671
728,108 - - 779,044 512,727 (3,185,331) 428,975
- - - 1,210,727 36,903 - 2,075,904
9,000 - - 3,017 20,352 - 33,369
1,135,446 370,161 0 2,167,950 941,889 (3,185,331) 4,424,399
- - - - 2,983 - 13,467
245,187 - - 29,000 21,113 - 1,280,434
- - - - 904,467 - 904,467
- - - - - - 3,339,644
- - - - 145,859 - 145,859
- - - - 1,026,158 - 1,033,796
1,342,854 3,041,804 4,832,465 - 3,873,354 - 13,090,477
- - - - 594,801 - (758,293)
- - - - (412,546) - (412,546)
- - - (579,627) 369,958 - (305,733)
1,588,041 3,041,804 4,832,465 (550,627) 6,526,147 0 18,331,572
$2,723,487 $3,411,965 $4,832,465 $1,617,323 $7,468,036 ($3,185,331) $22,755,971
Fund balance reported above 18,331,572
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 20,235,316
Other long-term assets are not available to pay for current-
periodexpenditures and, therefore, are deferred in the funds. 1,381,402
Internal service funds are used by management to charge the costs of garag e, data processing,
insurance and compensated absences to individual funds. With the exception of
the data processing fund which is abusiness-type fund, the assets and liabilities of the internal
service funds are included in the governmental activities in the statement of net assets. 1,289,642
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported in the funds. (3,627,171)
Net assets of governmental activities $37,610,761
The accompanying notes are an integral part of these financial statements.
45
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
Economic
Anoka Development Capital Municipal
County Authority Admin Appreciation State Aid
General CDBG (Component Unit) Bonds of 1990 Street Fund
Revenues:
Taxes $4,960,668 $ - $217,154 $ - $ -
Tax increment collections - - - - -
Special assessments - - - - -
Licenses and permits 344,372 - - - -
Intergovernmental 1,890,697 279,895 14,750 - 625,020
Charges for services 497,516 - - - -
Fines and forfeitures 127,555 - - - -
Investment income:
Interest and dividends 150,929 1,136 1,176 55,512 -
Change in fair value (49,488) - (386) (1,312) -
Otherrevenues 22,191 - - - -
Total revenues 7,944,440 281,031 232,694 54,200 625,020
Expenditures:
Current:
General government 1,558,646 - - - -
Public safety 3,653,906 - - - -
Publicworks 1,304,547 - - - 112,796
Culture and recreation 1,215,234 - - - -
Community development - 2,308 126 - -
Capital outlay:
General government 11,022 - - - -
Public safety 20,694 - - - -
Publicworks 33,105 - - - 186,467
Culture and recreation 62,700 - - - -
Community development - 291,986 411,887 - -
Debtservice:
Principal retirement - - - 1,279,704 -
Interest and fiscal charges - - - 2,365,282 -
Developer incentives - - - - -
Total expenditures 7,859,854 294,294 412,013 3,644,986 299,263
Revenues over (under) expenditures 84,586 (13,263) (179,319) (3,590,786) 325,757
Other financing sources (uses):
Sale of capital assets - - - - -
Transfers in 467,929 - - 920,750 -
Transfers out (1,342,497) - (223,791) (6,323) (285,000)
Total other fmancing sources (uses) (874,568) 0 (223,791) 914,427 (285,000)
Net change in fund balance (789,982) (13,263) (403,110) (2,676,359) 40,757
Fund balance -January 1 4,140,110 (29,636) 78,049 2,683,997 (136,821)
Fund balance -December 31 $3,350,128 ($42,899) ($325,061) $7,638 ($96,064)
The accompanying notes are an integral part of these fmancial statements.
46
Statement 4
Capital Capital
Capital Improvements Equipment Capital Other Intra Total
Improvement General Gov't Replacement Improvements Governmental Activity Governmental
Development Buildings General Gov't PIR Fund Funds Eliminations Funds
$ - $ - $ - $ - $438,835 $ - $5,616,657
- - - - 1,085,953 - 1,085,953
- - - 520,031 - - 520,031
- - - 37,967 - - 382,339
1,340,372 - - 727,753 - 4,878,487
1,883,195 - - 33,386 783,263 - 3,197,360
- - - - - - 127,555
- 108,081 151,491 - 150,180 - 618,505
- (35.4401 (49.6741 - (49.2461 - (185.5461
3,223,567 72,641 101,817 591,384 3,205,503 0 16,332,297
- - - - 17,217 - 1,575,863
- - 2,932 - 297,181 - 3,954,019
- 11,440 - 129,187 1,017 - 1,558,987
- 11,890 - - 750,674 - 1,977,798
3,313,884 - - - 1,195,020 - 4,511,338
11,022
- - 41,156 - 33,275 - 95,125
- 453,541 75,722 1,163,903 - - 1,912,738
- - - - - - 62,700
622,785 - - - 110,066 - 1,436,724
- - - - 169,331 - 1,449,035
- - - - 112,923 - 2,478,205
- - - - 252,176 - 252,176
3,936,669 476,871 119,810 1,293,090 2,938,880 0 21,275,730
609,509 - 19,145 - - - 628,654
185,624 72,500 100,000 370,971 1,601,742 (3,166,446) 553,070
- - (27.8011 (307.6571 (1.053.6981 3.166.446 (80.3211
$1,588,041 $3,041,804 $4,832,465 ($550,627) $6,526,147 $0 $18,331,572
The accompanying notes are an integral part of these fmancial statements.
47
48
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2005
Statement 5
Amounts reported for governmental activities in the
statement of activities (Statement 2) are different because:
Net changes in fund balances -total governmental funds (Statement 4)
Governmental funds report capital outlays as expenditures. However, in the statement of
activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense. This is the amount by which capital outlays for capital assets used in
governmental activities exceeded depreciation in the current year.
Governmental funds report the proceeds from the sale of capital assets. The statement of
activities, however, reports only the net gain or (loss) on disposal of capital assets. The
difference is the carrying value of the capital assets disposed.
Revenues that provide current financial resources of the governmental funds, but were earned in
prior years, are not reported as revenues in the current year statement of activities.
The repayment of the principal of long-term debt consumes the current financial resources of
governmental funds. It has no effect on net assets however, and it is therefore not reported as
an expense in the statement of activities.
Current year payment of interest that accrued in prior years on long-term debt consumes the
current financial resources of governmental funds. It has no effect on net assets however, and it
is therefore not reported as an expense in the current year statement of activities.
The net revenues of certain activities of internal service funds are reported with governmental
activities >n the statement of activities.
Change in net assets of governmental activities (Statement 2)
The accompanying notes are an integral part of these financial statements.
($3,842,030)
2,234,362
(1,120,947)
(342,357)
1,449,035
2,189,673
61,966
5629,702
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2005
Business-Type Activities -Enterprise Funds
Assets: Water Sewer Refuse
Current assets:
Cash and cash equivalents $293,839 $658,259 $395,549
Receivables:
Accounts (net of allowance for uncollectibles) 397,740 252,808 287,098
Interest 4,293 16,114 2,116
Due from other governmental units -current - 5,999 -
Interfundreceivable 376,869 1,700,130 -
Prepayments - 66,210 -
Inventory - at cost 1,656 - -
Total current assets 1,074,397 2,699,520 684,763
Noncurrent assets:
Due from other governmental units -noncurrent - 132,299 -
Capital assets:
Land 45,223 36,586 -
Buildings 447,305 45,201 6,000
Improvements other than buildings 6,315,282 4,685,437 11,566
Office furniture and fixtures 25,259 40,964 -
Machinery and equipment 330,090 640,591 97,124
Construction in process 534,512 193,933 -
Total capital assets 7,697,671 5,642,712 114,690
Less: accumulated depreciation (2,830,983) (3,107,961) (74,468)
Net capital assets 4,866,688 2,534,751 40,222
Total noncurrent assets 4,866,688 2,667,050 40,222
Total assets 5,941,085 5,366,570 724,985
Liabilities:
Current liabilities:
Accounts payable 8,451 6,884 268,467
Accrued salaries and withholdings payable 10,735 9,572 -
Due to other governmental units 157,818 - -
Interfundpayable 1,451,428 - -
Accruedinterest payable 21,632 373 -
Compensated absences payable -current 596 1,002 -
Bondspayable -current 174,480 3,964 -
Total current liabilities 1,825,140 21,795 268,467
Noncurrent liabilities:
Compensated absences payable -noncurrent 15,006 25,226 -
Bondspayable -noncurrent 1,297,107 17,641 -
Total noncurrent liabilities 1,312,113 42,867 0
Total liabilities 3,137,253 64,662 268,467
Net assets:
Invested in capital assets, net of related debt 3,395,101 2,513,147 40,222
Restricted for debt service 263,950 5,110 -
Unrestricted (855,219) 2,783,651 416,296
Total net assets $2,803,832 $5,301,908 $456,518
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.
S~
Statement 6
Business-Type Activities -Enterprise Funds
Storm Intra Activity Total Internal Total
Sewer Liquor Eliminations Enterprise Funds Service Funds Proprietary Funds
$154,088 $1,934,603 $ - $3,436,338 $2,917,462 $6,353,800
58,997 885 - 997,528 3,001 1,000,529
1,217 9,886 - 33,626 13,784 47,410
- 874 - 6,873 - 6,873
- - (1,648,024) 428,975 - 428,975
- 17,426 - 83,636 34,356 117,992
- 1,681,740 - 1,683,396 43,395 1,726,791
214,302 3,645,414 (1,648,024) 6,670,372 3,011,998 9,682,370
- - - 132,299 - 132,299
254,724 4,360 - 340,893 - 340,893
- 162,239 - 660,745 371,383 1,032,128
1,148,708 81,198 - 12,242,191 119,846 12,362,037
- 14,791 - 81,014 - 81,014
- 349,632 - 1,417,437 152,753 1,570,190
205,564 - - 934,009 - 934,009
1,608,996 612,220 0 15,676,289 643,982 16,320,271
(214,296) (532,526) - (6,760,234) (525,131) (7,285,365)
1,394,700 79,694 0 8,916,055 118,851 9,034,906
1,394,700 79,694 0 9,048,354 118,851 9,167,205
1,609,002 3,725,108 (1,648,024) 15,718,726 3,130,849 18,849,575
83 236,547 - 520,432 47,549 567,981
1,350 40,189 - 61,846 10,977 72,823
- 62,847 - 220,665 - 220,665
196,596 - (1,648,024) - - -
ll,607 - - 33,612 - 33,612
47 1,762 - 3,407 25,618 29,025
109,283 - - 287,727 - 287,727
318,966 341,345 (1,648,024) 1,127,689 84,144 1,211,833
1,186 44,356 - 85,774 644,993 730,767
618,233 - - 1,932,981 - 1,932,981
619,419 44,356 0 2,018,755 644,993 2,663,748
938,385 385,701 (1,648,024) 3,146,444 729,137 3,875,581
667,184 79,694 - 6,695,348 118,851 6,814,199
106,592 - - 375,652 - 375,652
(103,159) 3,259,713 - 5,501,282 2,282,861 7,784,143
$670,617 $3,339,407 $0 12,572,282 $2,401,712 $14,973,994
1,112,070
$13,684,352
The accompanying notes are an integral part of these financial statements.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Operating revenues:
Charges for services
Charges for sales
Total operating revenues
Operating expenses:
Cost of sales, services and goods sold
Operating expense
Depreciation
Total operating expenses
Net income (loss) from operations
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Intergovernmental
Miscellaneous revenues
Interest and fiscal charges
Miscellaneous expenses
Total nonoperating revenues (expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Total transfers
Change in net assets
Total net assets -beginning
Total net assets -ending
Business-Type Activities -Enterprise Funds
$93,404 $1,13 9,578 $1,256,180
1,785,310 - -
1,878,714 1,139,578 1,256,180
975,178 770,375 1,075,850
491,564 365,781 23,638
186,153 169,816 11,169
1,652,895 1,305,972 1,110,657
17,990 90,597 8,867
(5,899) (22,141) (2,907)
- - 46,170
9,276 6,232 -
(52,661) (915) -
- (2,911) -
(31,294) 70,862 52,130
194,525 (95,532) 197,653
234,000 227,419 2,963
(343,713) (340,328) (180,878)
(109,713) (112,909) (177,915)
84,812 (208,441) 19,738
Change in net assets as reported above
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business-type activities
The notes to the fmancial statements are an integral part of this statement.
52
Statement 7
Business-Type Activities -Enterprise Funds
Intra Activity Total Internal Total
Storm Sewer Liquor Eliminations Enterprise Funds Service Funds Proprietary Funds
$274,907 $ - $ - $2,764,069 $871,381 $3,635,450
- 6,713,932 - 8,499,242 91,562 8,590,804
274,907 6,713,932 0 11,263,311 962,943 12,226,254
77,388 5,210,861 - 8,109,652 919,209 9,028,861
9,347 1,280,083 - 2,170,413 - 2,170,413
57,435 22,917 - 447,490 22,478 469,968
144,170 6,513,861 0 10,727,555 941,687 11,669,242
130,737 200,071 0 535,756 21,256 557,012
5,105 41,425 - 163,984 57,749 221,733
(1,673) (13,583) - (46,203) (18,935) (65,138)
- - - 46,170 - 46,170
- 643 - 16,151 7,196 23,347
(28,372) - - (81,948) - (81,948)
- (24) - (2,935) - (2,935)
(24,940) 28,461 0 95,219 46,010 141,229
105,797 228,532 0 630,975 67,266 698,241
173,467 - (627,528) 10,321 239,000 249,321
(172,432) (210,747) 627,528 (620,570) (101,500) (722,070)
1,035 (210,747) 0 (610,249) 137,500 (472,749)
106,832 17,785 0 20,726 204,766 225,492
563,785 3,321,622 - 12,551,556 2,196,946 14,748,502
$670,617 $3,339,407 $0 $12,572,282 $2,401,712 $14,973,994
$20,726
142,802
$163,528
The notes to the financial statements are an integral part of this statement.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Cash flows from operating activities:
Cash received from customers
Cash received from interfund goods and services provided
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital fmancing activities:
Transfers in
Transfers out
Interfund receivable repaid by (advanced to) other funds
Interfund payable (repaid to) advanced by other funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds of capital grants and contributions
Principal payments -bonds
Interest and fiscal charges
Net cash flows from capital and related financing activities
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
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
«r , ~ r
$1,855,350 $1,140,495 $1,255,252
(1,112,253) (898,841) (921,126)
(257,933) (237,563) (366)
9,276 6,232 46,170
- (2,911) -
494,440 7,412 379,930
234,000 227,419 2,963
(343,713) (340,328) (180,878)
(16,829) 73,261 -
25,756 - -
(100,786) (39,648) (177,915)
(370,860) (238,087) -
(158,258) (3,865) -
(54,621) (978) -
(583,739) (242,930) 0
18,091 93,130 9,340
(5,899) (22,141) (2,907)
12,192 70,989 6,433
(177,893) (204,177) 208,448
The notes to the fmancial statements are an integral part of this statement.
54
Statement 8
Page 1 of 2
Business-Type Activities -Enterprise Funds
Total
Storm Sewer Liquor Enterprise Funds
$277,588 $6,714,863 $11,243,548
(65,071) (5,856,482) (8,853,773)
(21,855) (828,532) (1,346,249)
- 643 62,321
- (24) (2,935)
190,662 30,468 1,102,912
(210,747)
(210,747)
0
46,947
(13,583)
33,364
(146,915)
2,081,518
$1,934,603
637,849
(1,248,098)
80,705
(33,423)
173,467
(172,432)
24,273
(59,179)
(33,871)
(105,026)
113,407
(103,546)
(29,900)
(125,065)
4,569
(1,673)
2,896
34,622
119,466
$154,088
(562,967)
(713,973)
113,407
(265,669)
(85,499)
(951,734)
172,077
(46,203)
125,874
(285,915)
3,722,253
$3,436,338
Internal
Service Funds
$ -
1,016,449
(673,541)
(288,415)
4,195
58,688
239,000
(101,500)
41,952
179,452
(36,865)
(36,865)
51,716
(18,935)
32,781
234,056
2,683,406
$2,917,462
The notes to the financial statements are an integral part of this statement.
55
Total
Proprietary Funds
$11,243,548
1,016,449
(9,527,314)
(1,634,664)
66,516
(2,935)
1,161,600
876,849
(1,349,598)
122,657
(33,423)
(383,515)
(750,838)
113,407
(265,669)
(85,499)
(988,599)
223,793
(65,138)
158,655
(51,859)
6,405,659
$6,353,800
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2005
Business-Type Activities -Enterprise Funds
Water Sewer Refuse
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) 5225,819 (5166,394) $145,523
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 9,276 6,232 46,170
Miscellaneous expenses - (2,911) -
Depreciation expense 186,153 169,816 11,169
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (23,364) (16,570) (928)
(Increase) decrease in due from other governmental units - 17,487 -
(Increase) decrease in prepayments - (2,012) -
(Increase) decrease in inventory, at cost 2,284 - -
Increase (decrease) in accounts payable 907 (91) 177,996
Increase (decrease) in accrued
salaries and withholdings payable 7,546 (10,000) -
Increase (decrease) in due to other governmental units 84,590 - -
Increase (decrease) in compensated absences payable 1,229 11,855 -
Total adjustments 268,621 173,806 234,407
Net cash flows from operating activities 5494,440 57,412 $379,930
The notes to the financial statements are an integral part of this statement.
56
Statement 8
Page 2 of 2
Business-Type Activities -Enterprise Funds
Total Internal Total
Storm Sewer Liquor Enterprise Funds Service Funds Proprietary Funds
$130,737 $200,071 $535,756 $21,256 $557,012
- 643 62,321 $7,196 69,517
- (24) (2,935) - (2,935)
57,435 22,917 447,490 22,478 469,968
2,681 793 (37,388) (3,001) (40,389)
- 138 17,625 - 17,625
- (11,892) (13,904) 5,876 (8,028)
- (40,821) (38,537) 6,007 (32,530)
(2,108) (152,191) 24,513 (51,643) (27,130)
700 8,721 6,967 786 7,753
(16) 232 84, 806 - 84, 806
1,233 1,881 16,198 49,733 65,931
59,925 (169,603) 567,156 37,432 604,588
$190,662 $30,468 $1,102,912 $58,688 $1,161,600
The notes to the financial statements are an integral part of this statement.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
December 31, 2005
Statement 9
Assets:
Cash and investments
Total assets
Liabilities:
Accounts payable
Due to other governmental units
Total liabilities
Net assets
The notes to the fmancial statements are an integral part of this statement.
$45,921
45,921
6,335
39,586
45,921
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 fmancial position and results of operations of the HRA and the EDA component units are presented
using the blended method. These blended component units, although legally separate entities, are, in
substance, part of the City's operations. The component units include Governmental Funds using the
modified accrual basis of accounting, and as such are reported as Special Revenue Funds. Separate
financial statements for the HRA and EDA are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide fmancial statements (i.e., the statement of net assets and the statement of changes in
net assets) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not included among program
revenues are reported instead as general revenues.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 mod f ed accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if
they are collected within one year of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as
well as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
government.
The government reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Anoka County CDBG fund was established to account for the revenues and expenditures
associated with federal community development block grants and HOME funds.
The Economic DevelopmentAuthority administration fund is a fund of the component unit, Economic
Development Authority. It was established to account for revenues and expenditures associated with
business development and community redevelopment projects in the City.
The capital appreciation bonds of 1990 fund is used to account for the accumulation of resources for
the payment of principal and interest costs.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The capital improvement development fund is used to account for improvements to various
development areas within the City.
The municipal state aid street fund is maintained according to State Statue to account for maintenance
and construction of streets of municipal state aid systems.
The capital improvements -general government buildings fund was established to account for
improvements to municipal buildings including the library, municipal garage and city hall.
The capital equipment replacement -general government fund was established to account for the
replacement of capital assets as needed.
The capital improvement - PIR fund was established to account for projects that will be fully assessed
to the affected properties.
The government reports the following major proprietary funds:
The water fund accounts for revenue and expenses associated with water services to area residents.
The sewer fund accounts for revenues and expenses associated with sewer disposal within the City.
The refuse fund accounts for revenues and expenses associated with organized collection of refuse and
recycling within the City.
The storm sewer fund accounts for revenues and expenses associated with storm water disposal.
The liquor fund accounts for revenues and expenses associated with the operation of three off sale
liquor stores.
Additionally, the government reports the following fund types:
Internal service funds account for central garage, data processing, insurance, and compensated
absences services provided to other departments of the government on a cost reimbursement basis.
Agency -The permit surcharge agency fund is used to account for SAC charges and surcharges
collected for and remitted to the State of Minnesota. The Tri-City GIS fund is used to account for the
joint purchase of certain services for which the City is fiscal agent on behalf of the City of Columbia
Heights, the City of Fridley and the City of Andover.
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
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
of taxes, are similarly treated when they involve other funds of the City of Columbia Heights. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
water, sewer, refuse, storm sewer and liquor operations enterprise funds and of the internal service funds
are charges to customers for sales and services. Operating expenses for enterprise funds and internal
service funds include the cost of sales and services, administrative expenses, and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
D. BUDGETARY DATA
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
on January 1 of the following year. At least one special Council meeting is conducted to obtain public
comments as required by the State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 for the General fund and the following special
revenue funds:
Major special revenue funds:
Anoka County CDBG fund
Economic development authority administration fund (component unit)
Nonmajor special revenue funds:
Community development fund
Cable television fund
Library fund
D.A.R.E. program fund
Housing and Redevelopment Authority (component unit):
Parkview villa north fund
Parkview villa south fund
The budgets are prepared by fund, function, and activity. The budgets are adopted on a basis consistent
with generally accepted accounting principles and all appropriations lapse at the end of the budget year to
the extent that they have not been expended. Total expenditures appropriated in the budget resolution may
not legally exceed the estimated revenues available from various sources.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Formal budgetary integration is employed as a management control device during the year. Budget
revisions between functions or activities may be made by the City Manager. Budget revisions at the fund
level are authorized by the City Council in accordance with the City Charter at the request of the City
Manager. The legal level of budgetary control is therefore at the fund level.
The City does not use encumbrance accounting.
E. CASH AND INVESTMENTS
Cash balances from all funds of the City are pooled and invested to the extent available in authorized
investments. Investments are stated at fair value, based upon quoted market prices. Investment income is
allocated to the individual funds on the basis of applicable cash balance participation by each fund using an
average of monthly beginning cash and investment balances.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable
in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on
the government-wide financial statements.
F. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. Short-term interfund loans are classified as "interfund receivables/payables." All
short-term interfund receivables and payables at December 31 are planned to be eliminated in the
subsequent year. Long-term interfund loans are classified as "interfund loan receivablelpayable." 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 1 G 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.
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received by
the City in July, December and January are recognized as revenue for the current year. Taxes collected by
the County by December 31(remitted to the City the following January) and taxes and credits not received
at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent
taxes not collected by the City in January is fully offset by deferred revenue because they are not available
to finance current expenditures.
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
finance expenditures of the current fiscal period. In practice, current and delinquent special assessments
received by the City are recognized as revenue for the current year. Special assessments that are collected
by the County by December 31(remitted to the City the following January) are also recognized as revenue
for the current year. All remaining delinquent, deferred and special deferred assessments receivable in
governmental funds are completely offset by deferred revenues.
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
L INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies has been recorded as expenditures at the time of purchase.
These funds do not maintain material amounts of inventories. Real estate held for resale is valued at the
lower of cost or market.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first-
out (FIFO) method.
J. PREPAID ITEMS
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements.
K. CAPITAL ASSETS
Capital assets, which include land, buildings, improvements, office furniture and fixtures, machinery and
equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the
applicable governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an estimated useful life in excess of one year
and an initial individual cost of more than the following:
Capitalization Threshold
Land S 1
Buildings and structures 25,000
Improvements other than buildings 25,000
Machinery and equipment 5,000
Furniture and fixtures 5,000
Infrastructure 250,000
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Infrastructure assets acquired prior to June 30,1980 are not recorded. Donated capital assets are recorded
at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do
not add to the value of the asset or materially extend assets lives are not capitalized.
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 3 1, 2005, no interest was
capitalized in connection with construction in progress.
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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 -1 o years
Furniture and fixtures 5 -1 o 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. LONG-TERM OBLIGATIONS
In the government-wide fmancial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
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.
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
0. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an
Interfund loan receivable or payable which offsets the movement of cash between funds. All other
Interfund transactions are reported as transfers.
P. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial statements
during the reporting period. Actual results could differ from such estimates.
Q. COMPARATIVE DATA/RECLASSIFICATIONS
Certain comparative total data for the prior year has been presented in the 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 (53,627,171) difference are as follows:
Bonds payable (53,589,292)
Accrued interest payable (37,879)
Net adjustment to reduce fund balance -total
governmental funds to arrive at net assets of
governmental activities. (53,627,171)
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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, >n 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 $2,234,362 difference
are as follows:
Capital outlay in government fund financial statements $3,518,309
Depreciation expense (1,283,947)
Net adjustment to increase net changes in fund balance
- total governmental funds to arrive at changes in net
assets of governmental activities. $2,234,362
Another element of that reconciliation states, "Governmental funds report the proceeds from sales of
capital assets. The statement of activities, however, reports only the net gain or (loss) on the disposal
of capital assets." The details of this ($1,120,947) difference are as follows:
Capital asset disposals:
Capital assets held for use by the governmental activities:
Cost -from Note 4
Accumulated depreciation -from Note 4
Construction in-process placed into service
Real estate held for resale
Net adjustment to decrease net changes in fund
balances -total governmental funds to arrive at
changes in net assets of governmental activities.
($195,485)
175,331
8,366
(1.109.1591
($1,120,947)
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Another element of that reconciliation states, "Revenues that provide current financial resources of the
governmental funds, but were earned in prior years, are not reported as revenues in the current year
statement of activities." The details of this (5342,357) difference are as follows:
General property taxes deferred revenue:
At December 3 1, 2004 ($105, 861)
At December 31, 2005 151,573
Tax increment taxes deferred revenue:
At December 31, 2004 (16,248)
At December 31, 2005 18,562
Special assessments deferred revenue:
At December 31, 2004 (1,598,031)
At December 31, 2005 1,210,727
Loans receivable -deferred revenue:
At December 31, 2004 (3,620)
At December 31, 2005 541
Net adjustment to decrease net changes in fund
balances -total governmental funds to arrive at
changes in net assets of governmental activities. (5342,357)
Another element of that reconciliation states that, "The repayment of the long-term debt consumes the
current financial resources of governmental funds. It has no effect on net assets however, and is
therefore not reported as an expense in the current year statement of activities." The details of this
$1,449,035 difference are as follows:
Principal repayments:
General obligation debt -tax increment 51,279,704
General obligation debt -improvement 169,331
Net adjustment to increase net changes in fund
balances -total governmental funds to arrive at
changes in net assets of governmental activities. $1,449,035
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.
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 2 DEPOSITS AND INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds of the City. The following is a
reconciliation of the City's total cash and investment balances as of December 3 1, 2005:
Carrying
Amount At
Fair Value
Investments $ 21,520,863
Deposits 2,217,432
Cash on hand 6,412
(Less) fidicuiary fund cash (45,921)
Total cash and investments 523,698,786
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes, treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rates "A" or
better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated "AA" or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
(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.
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Deposits at December 31, 2005 are as follows:
Carrying
Bank Amount At
Balances Fair Value
Demand deposits $873,878 5795,233
Time deposits 1,446,800 1,422,199
Total $2,320,678 52,217,432
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 insecurities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
(1) any security which is a general obligation of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service.
(2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated "AA" or better by a national bond rating service; and
(3) a general obligation of the Minnesota housing finance agency which is a moral obligation of the
State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a
bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7, 469.178, subdivision 5 or 475.61, subdivision 6.
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
As of December 3 1, 2005 the City had the following investments and maturities:
Weighted
Average Carrying Percentage
Maturities Amount At of Fair Value
In Years Fair Value Per Issuer
Notes guaranteed by the U.S. government:
Federal Home Loan Bank 8.7 58,112,491 37.7%
Federal Home Loan Mortgage Corporation 7.4 5,676,787 26.4%
Federal National Mortgage Association 7.8 2,478,119 11.5%
Money market funds:
Wachovia Securities NIA 4,629,120 21.5%
Other issuers NIA 624,346 2.9%
Total investments ~ 21.520.863 100.0%
C. INVESTMENT RISKS
The City's investment policy is to follow Minnesota State Statutes as described above which reduces the
City's exposure to credit, custodial credit, and interest rate risks. Specific risk information for the City
is as follows:
a) Interest rate risk -The City's investment policy requires the City to diversify its investment portfolio to
eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy
also states the City's investment portfolio will remain sufficiently liquid to enable the City to meet all
operating requirements which might be reasonably anticipated.
b) Credit risk - As of December 3 1, 2005, the City's investments in the FNMA, FHLMC, and FHLB
Notes were all rated AAA by Standard & Poor's, and Aaa by Moody's Investors Service.
c) Concentration of credit risk -The City places no limit on the amount the City may invest in any one
issuer. The above table details the percentage of the City's investments with each issuer at December
3 1, 2005.
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 3 1, 2005 are as follows:
Maj or Funds
Capital
Improvement
PTR F»nrl Ca~a~ar Tntal
Special assessments receivable $978,297 $ - $978,297
Due from other governmental units - 132,299 132,299
Total $978.297 $132.299 $1.110.596
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 currentvalue payments from MCES over a 15-year period with interest at 4%. As of December 3 1, 2005, a
balance of $132,299 remained to be collected over the next five years. This receivable is presented as due from
other governmental units in the Sewer Utility Fund.
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:
TTn n~~ni~n~~v TTnonrno~
Delinquent property taxes receivable (General Fund)
Delinquent property taxes receivable (Economic Development Authority Administration fund)
Delinquent tax increment (Nonmaj or Funds)
Delinquent special assessments (Capital Improvements -PIR fund)
Special assessments not yet due (Capital Improvements -PIR fund)
Loans receivable (Nonmajor Funds)
Rental fees received but unearned (Nonmajor Funds)
Real estate held for resale - unearned grant revenue (Anoka County CDBG fund)
Total deferred/unearnedrevemse for governmental funds
$145,491 $ -
$6,081 $ -
18,562 -
20,205 -
1,190,522 -
541 -
- 17,800
- 676,702
~i ~Qi nm ~~nn cm
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 3 1, 2005 is as follows:
Beginning
Balance Additions Deletions
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
Capital assets being depreciated -net
Governmental activities capital assets -net
$3,103,134 $260,000 $ -
1,764,061 1,838,182 (20,154)
4,867,195 2,098,182 (20,154)
8,509,221 86,200 -
2,991,821 - -
307,506 83,588 (46,985)
5,270,828 155,547 (128,346)
Ending
$3,363,134
6,945,223
8,595,421
2,991,821
344,109
5,298,029
32,528,231 325,335 (175,331) 32,678,235
6,637,935 161,771 - 6,799,706
2,022,207 63,442 - 2,085,649
236,534 33,836 (46,985) 223,385
2,894,728 393,643 (128,346) 3,160,025
6,390,010 647,667 - 7,037,677
18,181,414 1,300,359 (175,331) 19,306,442
14,346,817 (975,024) 0 13,371,793
19,214,012 1,123,158 (20,154) 20,317,016
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
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
Capital assets being depreciated -net
Business-type activities capital assets -net
Total capital assets -net
$340,893 $ - $ - $340,893
395,248 539,155 (394) 934,009
736,141 539,155 (394) 1,274,902
660,745 - - 660,745
12,242,193 - - 12,242,193
81,014 - - 81,014
1,306,590 207,143 (26,585) 1,487,148
14,290,542 207,143 (26,585) 14,471,100
475,659 22,177 - 497,836
4,943,927 320,452 - 5,264,379
81,014 - - 81,014
864,159 110,928 (25,520) 949,567
6,364,759 453,557 (25,520) 6,792,796
7,925,783 (246,414) (1,065) 7,678,304
8,661,924 292,741 (1,459) 8,953,206
$27,875,936 $1,415,899 ($21,613) $29,270,222
Depreciation expense was charged to functions/programs of the primary government -governmental activities as
follows:
Governmental activities:
General government
Public safety
Public works
Culture and recreation
Community development
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Central garage
Total depreciation expense -capital assets held by governmental activities
$59,150
156,638
885,052
78,135
104,972
~,
mi inn ~cn
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Depreciation expense was charged to functions/programs of the primary government -business-type activities as
follows:
Business-type activities:
Water $186,153
Sewer 169,816
Refuse 11,169
Storm sewer 57,435
Liquor 22,917
Depreciation on capital assets held bybusiness-type internal service activities
is charged to each function based on use:
Data processing 6,067
Total depreciation expense -capital assets held bybusiness-type activities $453,557
Note 5 INTERFUND RECEIVABLES, PAYABLES ,AND TRANSFERS
Individual fund interfund receivable and payable balances at December 3 1, 2005 are as follows:
Fund
Major Funds:
General Fund
Anoka County CDBG
Economic Dev. Authority Admin.
Municipal State Aid Street Fund
Capital Improvement Development
Capital Improvements PIR Fund
Water
Sewer
Storm Sewer
Nonmaj or funds
Total
Receivable Payable
$1,753,836 $ -
- 60,621
- 1,400,000
- 133,806
800,000 728,108
- 779,044
376,869 1,451,428
1,700,130 -
- 196,596
631,495 512,727
~s ~ti~ ~zn ~s ~ti~ ~zn
$17,236 of the interfund balances between nonmajor funds at December 31, 2005 reflect interfund services
provided in 2005 and reimbursed in 2006. All other interfund balances at December 3 1, 2005 reflect noncapital
lending/borrowing arrangements to cover deficit cash balances at year end, including some to finance the
acquisition of certain real estate held for resale. All amounts are expected to be repaid within one year.
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Interfund transfers during the year ended December 3 1, 2005 are as follows:
Transfers In
Major Funds
Governmental Business-Type Nonmajor Funds
Capital Capital Capital Capital Eq. Capital Nonmajor
Appreciation Improvement Improvement Replacement Improvement Storm Gov't Internal
General Bonds of 1990 Development Gen. Gov't Gen. Gov't PIR Water Sewer Refuse Sewer Funds Service Total
Transfers out:
Major funds:
Governmental funds:
General $ - $ - $180,000 $ - $50,000 $83,471 $ - $ - $ - $396 $993,630 $35,000 $1,342,497
EDA Admin. - - - - - - - - - - 223,791 - 223,791
Cap. Apprec. Bonds of 1990 - - - - - - - - - - 6,323 - 6,323
MSA Street Fund - - - - - 285,000 - - - - - - 285,000
Cap. Equip. Replace. Gen. Gov't - - - - - - - - - - 27,801 - 27,801
Capital Improvements PIR 2,646 - 4,624 - - - 3,877 2,446 2,963 639 290,462 - 307,657
Business-type funds:
Water 77,855 - - - - - 230,123 - - - 735 35,000 343,713
Sewer 77,855 - - - - 2,500 - 224,973 - - - 35,000 340,328
Refuse 145,878 - - - - - - - - - - 35,000 180,878
Storm sewer - - - - - - - - - 172,432 - - 172,432
Liquor 66,747 - - - 50,000 - - - - - 59,000 35,000 210,747
Nonmajor governmental funds 96,948 920,750 1,000 - - - - - - - - 35,000 1,053,698
Internal service funds - - - 72,500 - - - - - - - 29,000 101,500
Total $467,929 $920,750 $185,624 $72,500 $100,000 $370,971 $234,000 $227,419 $2,963 $173,467 $1,601,742 $239,000 $4,596,365
From To Amount Purpose
General Fund Capital Improvements Development $180,000 Fund staffmg for redevelopment projects
General Fund Capital Equipment Replacement General Government 50,000.00 Fund equipment replacement
General Fund Capital Improvements PIR Fund 58,168.00 Allocate project costs
General Fund Capital Improvements PIR Fund 768.00 Allocate project costs
General Fund Capital Improvements PIR Fund 24,535.00 Allocate project costs
General Fund StormSewer Utility Construction Account 396.00 Allocate project costs
General Fund Community Development 293,630.00 Fund Community Development
General Fund Capital Sheffield Redevelopment Fund 700,000.00 Fund redevelopment project
General Fund Data Processing Operating Account 35,000.00 Fund data processing services
EDA Administration Community Development 223,791.00 Fund Community Development
Capital Appreciation Bonds of 1990 GO Tax Increment Refunding Bonds 2004A 6,323.00 Debt service
Municipal State Aid Street Fund Capital Improvements PIR Fund 285,000.00 Allocate project costs
Capital Improvements PIR Fund General Fund 2,646.00 Transfer delinquent accounts to assessments
Capital Improvements PIR Fund Capital Improvements Development 4,624.00 Allocate project costs
Capital Improvements PIR Fund Water Utility Operating Account 3,877.00 Transfer delinquent accounts to assessments
Capital Improvements PIR Fund Sewer Utility Operating Account 2,446.00 Transfer delinquent accounts to assessments
Capital Improvements PIR Fund Refuse Utility Fund 2,963.00 Transfer delinquent accounts to assessments
Capital Improvements PIR Fund StormSewer Utility Operating Account 639.00 Transfer delinquent accounts to assessments
Capital Improvements PIR Fund GO Improvement 1999A 35,241.00 Debt service
Capital Improvements PIR Fund GO Improvement/Revenue 2003A 255,221.00 Debt service
Capital Equipment Replacement Genera l Government Anoka JLEC: Police Computer Equipment 27,801.00 Segregate funds to clarify external restriction
Water Utility Operating Account General Fund 77,855.00 Labor allocation
Water Utility Capital Equipment Replac ement Account Water Utility Operating Account 29,197.00 Transfer equipment to operating account
7/
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Water Utility Operating Account Water Utility Capital Equipment Replacement Account 25,000.00 Fund equipment replacement
Water Utility Operating Account Water Utility Debt Service Account 173,875.00 Debt service
Water Utility Operating Account Water Utility Construction Account 2,051.00 Allocate project costs
Water Utility Construction Account Capital Improvements 735.00 Allocate project costs
Water Utility Operating Account Data Processing Operating Account 35,000.00 Fund data processing services
Sewer Utility Operating Account General Fund 77,855.00 Labor allocation
Sewer Utility Operating Account Capital Improvements PIR Fund 2,500.00 Allocate project costs
Sewer Utility Capital Equipment Replacement Account Sewer Utility Operating Account 140,365.00 Transfer equipment to operating account
Sewer Utility Operating Account Sewer Utility Capital Equipment Replacement Account 25,000.00 Fund equipment replacement
Sewer Utility Operating Account Sewer Utility Debt Service Account 5,000.00 Debt service
Sewer Utility Operating Account Sewer Utility Construction Account 54,608.00 Allocate project costs
Sewer Utility Operating Account Data Processing Operating Account 35,000.00 Fund data processing services
Refuse Utility Fund General Fund 72,939.00 Labor allocation
Refuse Utility Fund General Fund 72,939.00 Labor allocation
Refuse Utility Fund Data Processing Operating Account 35,000.00 Fund data processing services
StormSewer Utility Operating Account StormSewer Utility Capital Equipment Replacement Account 5,800.00 Fund equipment replacement
StormSewer Utility Operating Account StormSewer Utility Construction Account 32,900.00 Budgeted transfer
StormSewer Utility Operating Account StormSewer Utility Debt Service Account 133,732.00 Debt service
Liquor General Fund 66,747.00 Labor allocation
Liquor Capital Equipment Replacement General Government 50,000.00 Fund equipment replacement
Liquor DARE program 9,000.00 Fund DARE program
Liquor Infrastructure 50,000.00 Fund infrastructure replacement
Liquor Data Processing Operating Account 35,000.00 Fund data processing services
Contributed Projects Recreation General Fund 3,345.00 Reimburse prior year expenditure
Community Development General Fund 5,835.00 Labor allocation
Community Development General Fund 17,506.00 Labor allocation
Cable Television General Fund 59,448.00 Labor allocation
Library General Fund 10,814.00 Labor allocation
Tax Increment Bonds Capital Appreciation Bonds of 1990 920,750.00 Debt service
Contributed Projects Recreation Capital Improvements Development 1,000.00 Reimburse prior year expenditure
Cable Television Data Processing Operating Account 35,000.00 Fund data processing services
Central Garage Operating Account Capital Improvements General Gov't Buildings 72,500.00 Fund building improvements: General
Central Garage Operating Account Central Garage Capital Equipment Replacement Account 4,000.00 Fund equipment replacement
Central Garage Operating Account Data Processing Operating Account 25,000.00 Fund data processing services
$4,596,365
Note 6 OPERATING LEASES
A. LEASE EXPENSE
The City has leased premises for a liquor store (Top Valu I) under a lease agreement that originally expired
December 31, 2004. This lease was been renewed through February 29, 2008. This lease is considered for
accounting purposes to be an operating lease. Lease expenditures for the year ended December 3 1, 2005
amounted to $132,766.
The City also leased premises for its Top Valu II liquor store under afive-year lease that originally expired
February 28,1998, with afive-year renewal option in 1998 and 2003. The City exercised the 2003
renewal option. This lease is considered for accounting purposes to be an operating lease. Lease
expenditures for the year ended December 3 1, 2005 amounted to 575,164.
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The City also leased equipment for its public works activities during a portion of 2005 on a month-to-
monthbasis with no future minimum payments required. This lease is considered for accounting purposes
to be an operating lease. Lease expenditures for the year ended December 31, 2005 amounted to $2,396.
Future minimum rental payments are as follows:
Year Top Value I Top Value II
2006 $92,928 $55,165
2007 92,928 55,165
2008 15,488 9,194
Total $201,344 $119,524
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, 2005, totaled $38,809. The terms of
each lease are as follows:
Location Lessee
Ivanhoe Place Sprint Spectrum
40th Ave NE T-Mobile USA
2005 Annual Adjustment Expiration
$22,386 Greater of CPI or 5% 08/19/06
16.423 Greater of CPI or 4% 12/04/06
Total
Note 7 LONG-TERM DEBT
$38,809
General Obligation Bonds -The City issues General Obligation Bonds to provide funds for the acquisition and
construction of maj or capital facility additions. General Obligation Bonds have been issued for both governmental
and business-type activities. General Obligation Bonds are direct obligations and are backed by the full faith and
credit of the City.
Advance Crossover Refunding
On December 16, 2004, the City issued the General Obligation Tax Increment Refunding Bonds Series 2004A in
anticipation of refunding the General Obligation Tax Increment Capital Appreciation Bonds of 1990 on the 1990
bonds' early redemption date of September 1, 2005. The proceeds from the 2004A bonds were used to purchase
U.S. government securities placed in an irrevocable trust. Amounts in the trust were used for debt service on the
2004A bonds until the crossover date of September 1, 2005, when the remaining amount in the trust was used to
refund the 1990 bonds. The terms of this refunding did not defease the City's debt from the 1990 bonds until
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
September 1, 2005, and therefore both obligations were reported in the governmental activities as of December 3 1,
2004.
General Obligation Bonds outstanding at December 3 1, 2005, 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 Rate
General Obligation:
Governmental activities:
Tax increment bonds:
Tax Increment Refunding Bonds 2004A
Improvement bonds:
Improvement Bonds 1999A
Improvement Bonds 2003A
Issue
Date
Final Balance
Maturity End of Year
$1,985,000 2.00-2.75% 12/16/2004 9/1/2009 $1,985,000
860,000 3.45-4.30% 5/1/1999 2/1/2010 415,000
1,332,829 1.10-4.00% 6/1/2003 2/1/2018 1,189,292
Business-type activities:
Revenue bonds:
Utility revenue bonds 1999B 1,935,000 3.45-4.30% 5/1/1999 2/1/2010 1,090,000
Utility revenue bonds 2003A 1,267,171 1.10-4.00% 6/1/2003 2/1/2018 1,130,708
Total general obligation bonds outstanding $5,810,000
g~
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
ANNUAL DEBT SERVICE REQUIREMENTS
As of December 3 1, 2005, the annual requirements to maturity for general obligation bonds are as follows:
Fiscal Year
Ending Governmental Activities Business-Type Activities
December 31 Principal Interest Principal Interest
2006 $782,273 597,484 $287,727 575,967
2007 792,273 80,132 297,727 66,039
2008 804,836 60,692 310,164 55,221
2009 329,836 39,054 315,164 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 85,291 1,706
Total $3,589,292 $412,812 $2,220,708 $373,393
At December 3 1, 2005, a total of $613,612 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 incompliance 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.
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 3 1, 2005, is as follows:
Governmental activities:
Bonds payable
Tax Increment Bonds
Capital appreciation bonds 1990
Tax Incr refunding bonds 2004A
Improvement bonds:
Improvement bonds 1999A
Improvement bonds 2003A
Total bonds payable
Compensated absences
Total governmental activity
long-term liabilities
Business-type activities:
Revenue bonds:
Utility revenue bonds 1999B
Utility revenue bonds 2003A
Total bonds payable
Compensated absences
Total business-type activity
long-term liabilities
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
$1,279,704 $ - ($1,279,704) $ - $ -
1,985,000 - - 1,985,000 600,000
510,000 - (95,000) 415,000 90,000
1,263,623 - (74,331) 1,189,292 92,273
5,038,327 - (1,449,035) 3,589,292 782,273
593,599 432,093 (364,366) 661,326 25,263
$5,631,926 $432,093 ($1,813,401) $4,250,618 $807,536
$1,285,000 $ - ($195,000) $1,090,000 $200,000
1,201,377 - (70,669) 1,130,708 87,727
2,486,377 - (265,669) 2,220,708 287,727
79,514 82,752 (63,800) 98,466 3,762
$2,565,891 $82,752 ($329,469) $2,319,174 $291,489
For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an
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
Note 8 CONDUIT DEBT
From time to time, the City of Columbia Heights has issued Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The
bonds are secured by the property financed and are payable solely from private-sector entity revenues. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond
issuance. Neither the City of Columbia Heights, the State of Minnesota, nor any political subdivision thereof, is
obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements.
As of December 3 1, 2005, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $18,135,000.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 9 FUND EQUITY
The following funds had a fund deficit as of December 31, 2005:
Major Funds:
Special Revenue Funds:
Anoka County CDBG ($42,899)
Economic Development Authority Administration (325,061)
Capital Project Funds:
Muncipal State Aid Street Fund (96,064)
Capital Improvement PIR Fund (579,627)
Nonmajor Funds:
Debt Service Funds:
Sheffield TIF Redevelopment (393,027)
Multi-Use Redevelopment Plan (19,519)
Capital Project Funds:
TIF District #2 (2,296)
Total fund deficits ($1,458,493)
The City will finance these deficits through external or internal sources in future years.
83
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
At December 3 1, 2005 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:
Major Funds Nonmaj or Funds Totals
General Fund:
Reserved for prepayments $10,484 N/A $10,484
Designated for working capital 3,339,644 N/A 3,339,644
Special Revenue Funds:
Reserved for prepayments - 2,983 2,983
Reserved for real estate held for resale 985,134 21,113 1,006,247
Reserved for program expenditures - 893,933 893,933
Designated for working capital - 2,972 2,972
Designated for maintenance - 142,887 142,887
Debt Service Funds:
Designated for debt service 7,638 1,026,158 1,033,796
Capital Projects Funds:
Reserved for real estate held for resale 274,187 - 274,187
Reserved for program expenditures - 10,534 10,534
Designated for capital improvements 9,217,123 3,873,354 13,090,477
$13,834,210 $5,973,934 $19,808,144
Note 10 DEFINED BENEFIT PENSION PLANS -STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Columbia Heights are covered by defined
benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the Public Employees Retirement Fund (PEKE) and the Public Employees Police and Fire
Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established
and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. 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.
84
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring
member receives the higher of astep-rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary
for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For all PEPFF and PERF members whose annuity is calculated using Method 1, a full annuity is available
when age plus years of service equal 90. A reduced retirement annuity is also available to eligible
members seeking early retirement.
There are different types of annuities available to members upon retirement. A normal annuity is a lifetime
annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various
types of joint and survivor annuity options available which will reduce the monthly normal annuity
amount, because the annuity is payable over joint lives. Members may also leave their contributions in the
fund upon termination of public service in order to qualify for a deferred annuity at retirement age.
Refunds of contributions are available at any time to members who leave public service, but before
retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving
them yet are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes fmancial statements and required
supplementary information for PERF and PEPFF. That report maybe obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026.
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
2003 5216,465 $179,290
2004 215,137 182,157
2005 213,187 194,487
85
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 11 DEFINED BENEFIT PENSION PLAN -POLICE AND FIRE CONSOLIDATION FUND
TERMINATED PLAN -PFCF
Until July 1,1999, the City of Columbia Heights was a participant in the PERA Police and Fire Consolidation
Fund (PFCF), an agent, multiple-employer defined benefit plan. Effective July 1,1999 this plan was
terminated and all assets and liabilities were transferred to the Police and Fire Fund (PEPFF), a cost sharing
multiple-employer plan.
Upon termination, a final actuarial valuation determined the unfunded actuarial accrued liability (UAAL) for
each participant. The City of Columbia Heights' remaining obligation to the PFCF was repayment of the
UAAL, which was payable in 10 equal annual installments from 1999 - 2009. Annual payments for the City of
Columbia Heights were $56,706 for the fire and police accounts. During 2003, the entire outstanding amount
of $325,675 was paid off.
Note 12 DEFINED CONTRIBUTION PLAN
A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION
The Columbia Heights Fire Department Relief Association is the administrator of asingle-employer pension
plan for the paid on-call members of the City of Columbia Heights Fire Department.
Through October 26,1997, the association operated as a defined benefit plan. Effective October 27,1997, the
association amended its by-laws and converted to a defined contribution plan. The pension plan was fully
funded at the time of conversion.
Benefits and contribution requirements are established by the association's by-laws and can be amended by the
association's board of directors with approval from the City of Columbia Heights. All provisions are within
limitations established by Minnesota statutes.
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 2005 state aid was contributed to the plan.
B. COUNCIL MEMBERS
Certain council members of the City of Columbia Heights are covered by the Public Employees Defined
Contribution Plan (PEDCP), amultiple-employer deferred compensation plan administered by the Public
Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under section
401(a) of the Internal Revenue Code and all contributions by or on behalf of the employees are tax deferred
until time of withdrawal.
86
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative
expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and employer contribution rates for
those qualified personnel who elect to participate. An eligible elected official who decides to participate
contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel,
employer contributions are determined by the employer, and for salaried employees must be a fixed percentage
of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert
duty. Employees who are paid for their services may elect to make member contributions in an amount not-to-
exceedthe employer share. Employer and employee contributions are combined and used to purchase shares in
one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the
plan, PERA receives 2% of employer contributions and four-tenths of 1% of the assets in each member's
account annually.
Note 13 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is
subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated.
With this type of coverage, final premiums are determined after loss experience is known. The amount of
premium adjustment, if any, is considered immaterial and not recorded until received or paid.
Property, casualty, and automobile insurance coverage are provided through a pooled self insurance
program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial
companies for claims in excess of various amounts. The City retains risk for the deductible portions.
These deductibles are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including employee health and
disability insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which
the City is a defendant are either covered by insurance or development agreements; of an immaterial
amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs.
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
C. FEDERAL AND STATE FUNDS
Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment.
Any disallowed claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of funds which maybe disallowed by the agencies cannot be determined at this
time although the City expects such amounts, if any, to be immaterial.
D. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
E. CONTRACTUAL COMMITMENTS
The City has entered into several contractual commitments that are in process at year end. At December
3 1, 2005, the City's committed obligation for such projects was approximately $2,222,000.
Additionally, under the terms of six tax increment financing agreements, the City has commitments to
reimburse developers for certain qualifying redevelopment costs. These future reimbursements are limited,
however, to the future tax increment received from certain tax increment districts. The amount to be paid
under these agreements is not determinable at this time.
Additionally, under the terms of a private redevelopment contract, the City has a commitment to pay for a
portion of the pollution remediation costs necessary to redevelop certain land formerly used for industrial
purposes. Under the agreement, the City is obligated for 50 percent of costs in excess of amounts funded
by grants, with a maximum exposure of $1 million. At the present time there is not adequate information
to determine the full extent of any potential contingent liability for this item.
In addition to the above contractual commitments, the City has a contract with the City of Minneapolis for
the purchase of the City's water supply. This water supply flows through one master meter located at the
City of Minneapolis reservoir. During the years 2001through 2005, 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 for this item.
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
Note 14 SUBSEQUENT EVENTS
Effective January 1, 2006, the City transferred the amounts shown below to a new capital project fund and
designated the fund balance of this new fund for expenditures relating to a proposed new community center
building.
Transfer from:
Major funds
Capital improvement general govt. bldgs.
Liquor
Nonmajor funds:
Flex benefit
Capital improvement
Capital improvement parks
Capital equipment cable TV
Internal service funds:
Insurance
Transfer to:
New fund for 2006:
Community center capital building
Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS
$1,800,000
500,000
25,000
90,000
500,000
250,000
735,000
$3,900,000
For the year ended December 3 1, 2005, the City implemented the following statement issued by the Governmental
Accounting Standards Boards (GASB), which modified the disclosure requirements shown in Note 2 for deposit
and investment risks:
Statement No. 40 Deposit and Investment Risk Disclosures-an amendment of GASB Statement No. 3.
The provisions of this Statement are effective for financial statements for periods beginning after June
15, 2004.
For the year ended December 3 1, 2005, the City also implemented the following statement and technical bulletin
issued by the GASB. These pronouncements did not have a material effect on the accompanying financial
statements:
Statement No. 42 Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries. The provisions of this Statement are effective for fiscal periods beginning after
December 15, 2004
Technical bulletin 2004-2 Recognition of Pension and Other Post-Employment Benefit
Expenditures/Expenses and Liabilities by Cost-Sharing Employers. The provisions of this technical
bulletin are effective for fiscal periods beginning after December 15, 2004
89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2005
The GASB recently approved the following statements which were not implemented for the accompanying financial
statements for the year ended December 3 1, 2005. The effect these standards may have on future financial
statements is not determinable at this time:
Statement No. 43 Financial Reporting for Post Employment Benefit Plans Other than Pension Plans.
The requirements of this Statement for OPEB plan reporting are effective one year prior to the effective
date of the related Statement # 45 for the employer (single-employer plan) or for the largest participating
employer in the plan (multiple-employer plan).
Statement No. 44 Economic Condition Reporting: The Statistical Section - an amendment to NCGA
Statement 1. The provisions of this Statement are effective for statistical sections prepared for periods
beginning after June 15, 2005.
Statement No. 45 Accounting and Financial Reporting by Employers for Post Employment Benefits
Other than Pension. Implementation is required in three phases based on a government's total annual
revenues in the first fiscal year ending after June 15,1999. This Statement is effective for periods
beginning after December 15, 2006, for phase 1 governments (those with total annual revenues of $100
million or more); after December 15, 2007, for phase 2 governments (those with total annual revenues of
$10 million or more but less than $100 million); and after December 15, 2008, for phase 3 governments
(those with total annual revenues of less than $10 million). Earlier implementation is encouraged.
90
REQUIRED SUPPLEMENTARY INFORMATION
91
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 10
Page 1 of 2
2005
Revenues:
Taxes
Licenses and permits
Intergovernmental:
Market value homestead credit
All other
Charges for services
Fines and forfeitures
Investment income:
Interest and dividends
Change in fair value
Other revenues
Total revenues
Expenditures:
General government:
Council
Manager
Legal
Finance and elections
Assessing
General government buildings
Total general government
Public safety:
Police/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
Budgeted Amounts Final Budget 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
$5,578,737 $5,005,995 $4,960,668 ($45,327) $4,336,802
318,800 318,800 344,372 25,572 506,319
- 572,742 572,742 - 587,319
1,336,597 1,342,212 1,317,955 (24,257) 1,930,028
420,498 451,566 478,488 26,922 444,856
120,000 120,000 127,555 7,555 140,282
150,000 150,000 150,929 929 178,937
(75,000) (75,000) (49,488) 25,512 (7,756)
40,526 40,526 41,219 693 31,025
7,890,158 7,926,841 7,944,440 17,599 8,147,812
187,281 187,281 171,500 15,781 166,990
405,943 405,943 400,809 5,134 397,741
186,500 186,500 165,164 21,336 176,417
615,943 615,943 586,524 29,419 603,493
105,913 105,913 91,472 14,441 90,400
150.676 150.676 152.017 (1.3411 120.341
1,652,256 1,652,256
1,555,382
Z,65U,35y Z,71Z,U4Z Z,63U,UZ3 ~Z,UIy Z,443,Z56
963.106 963.106 1.044.577 (81.4711 1.018.836
3,613,465 3,675,148
3Uy,yyy 3Uy,yyy 3Uy,yll ~~ 3US,Z3y
850,415 850,415 863,257 (12,842) 822,014
110,206 110,206 164,484 (54,278) 122,451
1,270,620 1,270,620 1,337,652 (67,032) 1,249,704
1.374.702 1.374.702 1.277.934 96.768 1.266.844
1,403,572 1,403,572
7,939,913 8,001,596
(49,755) (74,755)
1,280,116 123,456 1,269,024
7,859,854 141,742 7,536,202
84,586 159,341 611,610
92
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -GENERAL FUND
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 10
Page 2 of 2
2005
Variance with
Budgeted Amounts Final Budget 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Other financing sources (uses):
Transfers in $461,938 $461,938 $467,929 55,991 $456,634
Transfers out (378,630) (1,258,630) (1,342,497) (83,867) (351,366)
Total other financing sources (uses) 83,308 (796,692) (874,568) (77,876) 105,268
Net change in fund balance $33,553 ($871,447) (789,982) $81,465 716,878
Fund balance -beginning
Fund balance -ending
93
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - ANOKA COUNTY CDBG
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 11
2005
Variance with
Budgeted Amounts Final Budget- 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Intergovernmental $ - $ - $279,895 $279,895 $525,544
Other revenues - - 1,136 1,136 -
Totalrevenues 0 0 281,031 281,031 525,544
Expenditures:
Other services and charges - - 2,308 (2,308) 567
Capital outlay - - 291,986 (291,986) -
Total expenditures 0 0 294,294 (294,294) 567
Revenues over (under) expenditures 0 0 (13,263) (13,263) 524,977
Other financing sources (uses):
Transfers out - - - - (525,544)
Net change in fund balance $0 $0 (13,263) ($13,263) (567)
Fund balance -beginning (29,636) (29,069)
Fund balance -ending ($42,899) ($29,636)
94
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
BUDGETARY COMPARISON SCHEDULE -ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION
(COMPONENT UNIT)
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
2005
Variance with
Budgeted Amounts Final Budget- 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Taxes $246,331 $231,581 $217,154 ($14,427) $197,418
Intergovernmental - 14,750 14,750 - 12,889
Investment income
Interest and dividends - - 1,176 1,176 482
Change in fair value - - (3 86) (3 86) (21)
Total revenues 246,331 246,331 232,694 (13,637) 210,768
Expenditures:
Other services and charges - - 126 (126) 750
Capital outlay - - 411,887 (411,887) -
Contingencies 22,541 22,541 - 22,541 -
Total expenditures 22,541 22,541 412,013 (389,472) 750
Revenues over (under) expenditures 223,790 223,790 (179,319) (403,109) 210,018
Other financing sources (uses):
Transfers out (223,791) (223,791) (223,791) - (222,648)
Net change in fund balance ($1) ($1) (403,110) ($403,109) (12,63 0)
Fund balance -beginning 78,049 90,679
Fund balance -ending ($325,061) $78,049
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE -NOTE TO RSI
December 31, 2005
Note A LEGAL COMPLIANCE -BUDGETS
The City of Columbia Heights' budget is legally adopted on a basis consistent with generally accepted
accounting principles. The legal level of budgetary control is at the fund level. The following is a listing
of major special revenue funds whose actual expenditures and other financing uses exceeded budgeted
expenditures and other financing uses (appropriations) for 2005:
Final Over
Budget Actual Budget
Anoka County CDBG $ - $294,294 $294,294
Economic Development Authority Administration 246,332 635,804 389,472
For 2005, expenditures and other financing uses in the Anoka County CDBG Fund are over budget by
$294,294 due to grant funding expended on certain redevelopment projects. Neither the grant revenue nor
the grant expenditures were included in the 2005 budget, as the grants are approved by Anoka County on a
competitive project-by-project basis and cannot be reasonably estimated at the time the budget is adopted.
For 2005, expenditures and other financing uses in the Economic Development Authority Administration
Fund are over budget by $389,472 due to a reduction in the estimated net realizable value of real estate
held for resale. This change in estimate was not included in the 2005 budget.
96
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
97
98
NONMAJOR GOVERNMENTAL FUNDS
99
100
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.
lol
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2005
Statement 13
Total
Nonmaj or
Special Debt Capital Governmental
Assets Revenue Service Project Funds
Cash and investments $1,700,130 $1,048,133 $3,846,175 $6,594,438
Receivables:
Accounts 38,543 - - 38,543
Taxes - 26,798 - 26,798
Interest 10,942 5,747 19,152 35,841
Loans 541 - - 541
Due from other governmental units 116,284 - - 116,284
Interfund receivable 17,236 - 614,259 631,495
Prepayments 2,983 - - 2,983
Real estate held for resale 21,113 - - 21,113
Total assets $1,907,772 $1,080,678 $4,479,586 $7,468,036
Liabilities and Fund Balance
Liabilities:
Accounts payable $107,173 $6,745 $176,060 $289,978
Accrued salaries and withholdings payable 32,228 - - 32,228
Contracts payable -retained percentage - - 1,633 1,633
Due to other governmental units 48,068 - - 48,068
Interfund payable 22,921 441,759 48,047 512,727
Deferred revenue 18,341 18,562 - 36,903
Deposits 20,352 - - 20,352
Total liabilities 249,083 467,066 225,740 941,889
Fund balance:
Reserved:
Reserved for prepayments 2,983 - - 2,983
Reserved for real estate held for resale 21,113 - - 21,113
Reserved for program expenditures 893,933 - 10,534 904,467
Unreserved:
Designated for working capital 2,972 - - 2,972
Designated for maintenance 142,887 - - 142,887
Designated for debt service - 1,026,158 - 1,026,158
Designated for capital improvements - - 3,873,354 3,873,354
Undesignated 594,801 (412,546) 369,958 552,213
Total fund balance 1,658,689 613,612 4,253,846 6,526,147
Total liabilities and fund balance $1,907,772 $1,080,678 $4,479,586 $7,468,036
102
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 14
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2005
Total
Nonmaj or
Special Debt Capital Governmental
Revenue Service Project Funds
Revenues:
Taxes $438,835 $ - $ - $438,835
Tax increment collections - 818,960 266,993 1,085,953
Intergovernmental 626,312 96,244 5,197 727,753
Charges for services 781,573 - 1,690 783,263
Investment income:
Interest and dividends 45,850 24,081 80,249 150,180
Change in fair value (15,034) (7,897) (26,315) (49,246)
Other revenues 44,418 - 24,347 68,765
Total revenues 1,921,954 931,388 352,161 3,205,503
Expenditures:
Current:
General government 17,217 - - 17,217
Public safety 230,532 - 66,649 297,181
Public works - - 1,017 1,017
Culture and recreation 703,292 - 47,382 750,674
Community development 1,130,770 16,153 48,097 1,195,020
Capital outlay:
Public safety - - 33,275 33,275
Community development 110,066 - - 110,066
Debt service:
Principal retirement - 169,331 - 169,331
Interest and fiscal charges - 112,923 - 112,923
Developer incentives - 5,578 246,598 252,176
Total expenditures 2,191,877 303,985 443,018 2,938,880
Revenues over (under) expenditures (269,923) 627,403 (90,857) 266,623
Other financing sources (uses):
Transfers in 526,421 296,785 778,536 1,601,742
Transfers out (132,948) (920,750) - (1,053,698)
Total other fmancing sources (uses) 393,473 (623,965) 778,536 548,044
Net change in fund balance 123,550 3,438 687,679 814,667
Fund balance -beginning 1,535,139 610,174 3,566,167 5,711,480
Fund balance -ending $1,658,689 $613,612 $4,253,846 $6,526,147
103
104
NONMAJOR
SPECIAL REVENUE FUNDS
The City of Columbia Heights had the following Nonmaj or Special Revenue Funds during the
year:
Community Development Fund 201 -established to account for revenues and expenditures
associated with planning, building inspections, and community development projects within the
city.
Cable Television Fund 225 -established to account for revenues and expenditures associated
with cable television franchise.
Library Fund 240 - established in 1993 to account for revenues and expenditures of the library.
D.A.R.E. Program Fund 270 -established to account for revenues and expenditures of DARE
(Drug Awareness) Program.
Special Projects Fund 226 -established to monitor revenues from special projects and related
expen itures.
C.H.A.S.E. Fund 250 -established to account for revenues and expenditures associated with a
State grant received for community participation in youth enrichment programs.
Twenty-First Century Grant 261 -established to account for revenues and expenditures
associated with a grant received through the school district.
Confiscated Property Fund 265 -established to account for funds from property confiscated by
the Police Department.
Local Law Enforcement Block Grant Fund 276 -established to account for revenues and
expenditures associated with a federal grant received for the purchase of equipment to aid in
crime prevention.
Police Grants-Other Fund 272 -established to account for revenues and expenditures associated
with various one-time grants for police-related activities.
Recreation Contributed Projects Fund 881-established to monitor contributions for recreational
activities and related expenditures.
105
Contributed Projects Fund 883 - established to monitor contributions and related expenditures.
Flex Benefit Fund 887 -established to account for contributions by employees and related
expenditures for flexible benefits.
Housing and Redevelopment Authority- a separate legal entity from the City. The mayor and
City Council comprise the majority membership of this component unit. Its purpose is to
provide housing in the City.
Parkview Villa North Fund 203 -established to account for revenues and expenditures
associated with low-income federally subsidized senior housing.
Parkview Villa South Fund 213 -established to account for revenues and expenditures
associated with an EDA owned senior housing complex.
Rental Housing Fund 23 5 - established to account for revenues and expenditures of City-
.
owne renta properties.
Economic Development Authority - a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is economic
development in the City.
Business Revolving Loan Fund 299 -established to account for revenues and
expenditures associated with business development through a business revolving loan
fund.
106
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2005
Statement 15
Page 1 of 2
Community
Development Cable D.A.R.E.
Fund Television Librarv Program
Assets
Cash and investments
Receivables:
Accounts
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
Due to other governmental units
Interfund payable
Deferred revenue
Deposits
Total liabilities
Fund balance:
Reserved for prepayments
Reserved for real estate held for resale
Reserved for program expenditures
Unreserved:
Designated for working capital
Designated for maintenance
Undesignated
Total fund balance
Total liabilities and fund balance
$155,892 $17,059 $46,788 $31,385
- 35,406 19 -
1,027 43 1,533 -
8,442 - - -
- - 2.983 -
$165,361 $52,508 $51,323 $31,385
$13,056 $756 $17,417 $ -
15,569 - 16,019 -
- - 11,932 -
28,625 756 45,368 0
- - 2,983 -
- - 2,972 -
136,736 51,752 - 31,385
136,736 51,752 5,955 31,385
$165,361 $52,508 $51,323 $31,385
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2005
Twenty-First
Special Century Confiscated
Proiects C.H.A.S.E. Grant Proberty
Assets
Cash and investments
Receivables:
Accounts
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
Due to other governmental units
Interfund payable
Deferred revenue
Deposits
Total liabilities
Fund balance:
Reserved for prepayments
Reserved for real estate held for resale
Reserved for program expenditures
Unreserved:
Designated for working capital
Designated for maintenance
Undesignated
Total fund balance
Total liabilities and fund balance
$101,398 $54,275 $13,548 $6,767
606 410 24 -
- - 6,362 -
$102,004 $54,685 $19,934 $6,767
$ - $ - $642 $231
- - 640 -
- - - 60
17.800 - - -
17,800 0 1,282 291
- 54,685 18,652 -
84,204 54,685 18,652 6,476
$102,004 $54,685 $19,934 $6,767
108
Statement 15
Page 2 of 2
Local Law Police Recreation Housing and Economic Total
Enforcement Grants - Contributed Contributed Flex Redevelopment Development Nonmajor
Block Grant Other Proiects Proiects Benefit Authority Authority Sbecial Revenue
$36 $ - $104,704 $36,076 $58,090 $717,147 $356,965 $1,700,130
- - - - - 3,118 - 38,543
20 - - - 384 4,205 2,690 10,942
- - - - - - 541 541
- 5,685 - - - 104,237 - 116,284
- - - - - 8,794 - 17,236
- - - - - - - 2.983
$56 $5,685 $104,704 $36,076 $58,474 $837,501 $381,309 $1,907,772
$ - $ - $253 $279 $6,981 $67,558 $ - $107,173
- - - - - - - 32,228
- - - - - 36,076 - 48,068
- 5,685 - - - 17,236 - 22,921
- - - - - - 541 18.341
0 5,685 253 279 6,981 141,222 541 249,083
2,983
- - - - - - 21,113 21,113
56 - - - - 514,114 306,426 893,933
- - - - - - - 2,972
- - - - - 142,887 - 142,887
- - 104,451 35,797 51,493 39,278 53,229 594,801
56 0 104,451 35,797 51,493 696,279 380,768 1,658,689
$56 $5,685 $104,704 $36,076 $58,474 $837,501 $381,309 $1,907,772
109
110
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2005
Statement 16
Page 1 of 2
Community
Development Cable D.A.R.E.
Fund Television Library Program
Fund 201 Fund 225 Fund 240 Fund 270
Revenues:
Taxes $ - $ - $438,835 $ -
Intergovernmental - - 150,062 -
Fees/program revenues - 142,205 19,175 -
Rents - - - -
Investment income:
Interest and dividends 4,302 179 6,423 -
Change in fair value (1,411) (59) (2,106) -
Otherrevenues:
Contributions - - - -
Miscellaneous - - - -
Total revenues 2,891 142,325 612,389 0
Expenditures:
Personal services 382,703 1,788 441,822 -
Supplies 6,139 809 92,191 3,110
Other services and charges 58,881 5,824 77,452 1,690
Capital outlay 23,866 - - -
Total expenditures 471,589 8,421 611,465 4,800
Revenues over (under) expenditures (468,698) 133,904 924 (4,800)
Other financing sources (uses):
Transfers in 517,421 - - 9,000
Transfers out (23,341) (94,448) (10,814) -
Total other financing sources (uses) 494,080 (94,448) (10,814) 9,000
Net change in fund balance 25,382 39,456 (9,890) 4,200
Fund balance -beginning 111,354 12,296 15,845 27,185
Fund balance -ending $136,736 $51,752 $5,955 $31,385
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2005
Revenues:
Taxes
Intergovernmental
Fees/program revenues
Rents
Investment income:
Interest and dividends
Change in fair value
Other revenues:
Contributions
Miscellaneous
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Twenty-First
Special Century Confiscated
Projects C.H.A.S.E. Grant Property
Fund 226 Fund 250 Fund 261 Fund 265
$ - $ - $ - $ -
- - 51,532 -
14,515 (50) 17,691 -
38,809 - - -
2,540 1,720 101 -
(833) (564) (33) -
- - - 3,424
55,031 1,106 69,291 3,424
- - 41,068 -
- - 14,821 10,172
7,822 - 9,098 1,113
7,822 0 64,987 11,285
47,209 1,106 4,304 (7,861)
0 0 0 0
47,209 1,106 4,304 (7,861)
36,995 53,579 14,348 14,337
$84,204 $54,685 $18,652 $6,476
112
Statement 16
Page 2 of 2
Local Law Police Recreation Housing and Economic Total
Enforcement Grants Contributed Contributed Flex Redevelopment Development Nonmajor
Block Grant Other Projects Projects Benefit Authority Authority Special Revenue
Fund 276 Fund 272 Fund 881 Fund 883 Fund 887 Funds Fund 299 Funds
$ - $ - $ - $ - $ - $ - $ - $438,835
- 199,211 - - - 225,507 - 626,312
- - 1,285 - 10,142 - 3,192 208,155
- - - - - 534,609 - 573,418
83 - - - 1,610 17,619 11,273 45,850
(27) - - - (528) (5,777) (3,696) (15,034)
- - 7,080 27,978 - - - 35,058
- - - - - 5,936 - 9,360
56 199,211 8,365 27,978 11,224 777,894 10,769 1,921,954
- 10,270 - 500 - 40,998 - 919,149
- 188,522 19,649 6,331 - 35,650 - 377,394
3.464 419 4.050 8.972 974 605.509 - 785.268
3,464 199,211 23,699
(3,408) 0 (15,334)
15,803 974 768,357
12,175 10,250 9,537
- - (4.3451 -
0 0 (4,345) 0
(3,408) 0 (19,679) 12,175
3,464 - 124,130 23,622
$56 $0 $104,451 $35,797
0 2,191,877
10,769 (269,923)
- 526,421
- (132.9481
0 0 0 393,473
10,250 9,537 10,769 123,550
41,243 686,742 369,999 1,535,139
$51,493 $696,279 $380,768 $1,658,689
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -COMMUNITY DEVELOPMENT FUND 201
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With Comparative Totals For the Year Ended December 31, 2004
Statement 17
2005
Revenues:
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Variance with
Budgeted Amounts Final Budget- 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
$ - $ - $4,302 $4,302 $3,894
- - (1.4111 (1.4111 (1691
383,454 383,454 382,703 751 279,360
13,700 13,700 6,139 7,561 8,325
116,300 116,300 58,881 57,419 132,037
- - 23,866 (23,8661 -
513,454 513,454
(513,454) (513,454) (46~,by~)
517.421 517.421 517.421
494,080 494,080 494,080
(~1y,374) (~1y,374) Z5,3~2
$136,736
419,722
44,756 (415,yy7)
- 472.23 0
0 444,807
X44,756 ZB,~IU
$111,354
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CABLE TELEVISION FUND 225
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 3 1, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004
Statement 18
2005
Revenues:
Franchise fees
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Total expenditures
Revenues over expenditures
Other fmancing sources (uses):
Transfers out
Net change in fund balance
Fund balance -beginning
Fund balance -ending
Budgeted Amounts
Original Final
$135,000 $135,000
1.000 1.000
Variance with
Final Budget- 2004
Actual Positive Actual
Amounts (Negative) Amounts
$142,205 $7,205 $135,347
179 (8211 -
136,000 136,000 142,325 6,325 135,347
6,390 6,390
2.405 2.405
1,788 4,602 1,842
809 1.596 351
106,195 106,195
8,421 97,774 9,035
29,~U5 Z9,~U5 133,904
(94,448) (94,448) (94,448)
($64,643) ($64,643) 39,456
$51,752
104,099 126,312
- (109,330)
$104,099 16,982
(4,686)
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -LIBRARY FUND 240 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004
2005
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
Budgeted Amounts
Original Final
$438,835 $438,835
150,062 150,062
23,500 23,500
4,000 4,000
Variance with
Final Budget- 2004
Actual Positive Actual
Amounts (Negative) Amounts
$438,835 $ - $433,585
150,062 - 150,062
19,175 (4,325) 18,684
6,423 2,423 7,612
(2,106) (2,106) (330)
- (550) -
616,947 616,947
451,145 451,145
88,848 88,848
75,714 75,714
441,822 9,323 424,814
92,191 (3,343) 90,322
77,452 (1,738) 71,936
625,707 625,707 611,465 14,242 595,438
(8,760) (8,760) 924 9,684 14,175
(10,814) (10,814) (10,814) - (10,863)
($19,574) ($19,574) (9,890) $9,684 3,312
$5,955
$15,845
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - D.A.R.E. PROGRAM FUND 270
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004 Statement 20
2005
Variance with
Budgeted Amounts Final Budget- 2004
Actual Positive Actual
Original Final Amounts (Negative) Amounts
Revenues:
Contributions $ - $ - $ - $ - $50
Expenditures:
Supplies 3,200 3,200 3,110 90 3,203
Other services and charges 2,175 2,175 1,690 485 1,631
Total expenditures 5,375 5,375 4,800 575 4,834
Revenues over (under) expenditures (5,375) (5,375) (4,800) 575 (4,784)
Other financing sources (uses):
Transfers in 9,000 9,000 9,000 - 9,000
Net change in fund balance $3,625 $3,625 4,200 $575 4,216
Fund balance -beginning 27,185 22,969
Fund balance -ending $31,385 $27,185
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -SPECIAL PROJECTS FUND 226
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004 Statement 21
2005 2004
Revenues:
Fees/program revenue $14,515 $14,650
Rents $38,809 $10,969
Investment income:
Interest and dividends 2,540 1,254
Change in fair value (833) (54)
Total revenues 55.031 26.819
Expenditures:
Other services and charges 7,822 -
Revenues over expenditures 47,209 26,819
Fund balance -beginning 36,995 10,176
Fund balance -ending $84,204 $36,995
118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - C .H .A .S .E . FUND 250
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004 Statement 22
2005 2004
Revenues:
Fees/program revenue ($50) $12
Investment income:
Interest and dividends 1,720 2,390
Change in fair value (564) (103)
Total revenues 1,106 2,299
Expenditures - -
Revenues over expenditures 1,106 2,299
Other financing sources (uses):
Transfers out - (7,808)
Net change in fund balance 1,106 (5,509)
Fund balance -beginning 53,579 59,088
Fund balance -ending $54,685 $53,579
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -TWENTY-FIRST CENTURY GRANT FUND 261
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004 Statement 23
2005 2004
Revenues:
Intergovernmental $51,532 $57,432
Fees/program revenues 17,691 10,100
Investment income:
Interest and dividends 101 -
Change in fair value (33) -
Total revenues 69,291 67,532
Expenditures:
Personal services 41,068 35,546
Supplies 14,821 4,010
Other services and charges 9,098 18,500
Total expenditures 64,987 58,056
Revenues over expenditures 4,304 9,476
Other financing sources (uses):
Transfers in - 7,808
Net change in fund balance 4,304 17,284
Fund balance -beginning 14,348 (2,936)
Fund balance -ending $18,652 $14,348
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CONFISCATED PROPERTY FUND 265
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004
Statement 24
2005 2004
Revenues:
Other revenue:
Confiscated property $3,424 $6,875
Expenditures:
Supplies 10,172 6,455
Other services and charges 1,113 1,182
Total expenditures 11,285 7,637
Revenues over (under) expenditures (7,861) (762)
Fund balance -beginning 14,337 15,099
Fund balance -ending $6,476 $14,337
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -LOCAL LAW ENFORCEMENT BLOCK GRANT FUND 276 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004
2005 2004
Revenues:
Intergovernmental $ - $12,616
Investment income:
Interest and dividends 83 471
Change in fair value (27) (20)
Total revenues 56 13,067
Expenditures:
Supplies - 13,729
Other services and charges 3,464 540
Total expenditures 3,464 14,269
Revenues over (under) expenditures (3,408) (1,202)
Fund balance -beginning 3,464 4,666
Fund balance -ending $56 $3,464
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -POLICE GRANTS OTHER -FUND 272
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 31, 2004
Statement 26
2005
Revenues:
Intergovernmental $199,211
Expenditures:
Personal services 10,270
Supplies 188,522
Other services and charges 419
Total expenditures 199,211
Revenues over expenditures 0
Fund balance -beginning -
2004
$1,043
980
63
1,043
0
Fund balance -ending $0 $0
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -RECREATION CONTRIBUTED PROJECTS FUND 881
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 3 1, 2005
With Comparative Amounts For the Year Ended December 31, 2004
Statement 27
Revenues:
Fees/program revenue
Contributions
Total revenues
Expenditures:
Supplies
Other services and charges
Total expenditures
Revenues over (under) expenditures
Other fmancing sources (uses):
Transfers out
Net change in fund balance
Fund balance -beginning
Fund balance -ending
2005 2004
$1,285 $ -
7,080 39,247
8,365 39,247
19,649 7,816
4,050 19
23,699 7,835
(15,334) 31,412
(4,345) (6,000)
(19,679) 25,412
124,130 98,718
$104,451 $124,130
124
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -CONTRIBUTED PROJECTS FUND 883
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 3 1, 2005
With Comparative Amounts For the Year Ended December 31, 2004
Statement 28
2005 2004
Revenues:
Contributions $27,978 $1,938
Expenditures:
Personal services 500 -
Supplies 6,331 1,805
Other services and charges 8,972 1,085
Total expenditures 15,803 2,890
Revenues over (under) expenditures 12,175 (952)
Fund balance -beginning 23,622 24,574
Fund balance -ending $35,797 $23,622
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -FLEX BENEFIT FUND 887
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Amounts For the Year Ended December 3 1, 2004 Statement 29
2005 2004
Revenues:
Fees/program revenue $10,142 $8,771
Investment Income:
Interest and dividends 1,610 1,634
Change in fair value (528) (71)
Total revenues 11,224 10,334
Expenditures:
Other services and charges 974 6,746
Revenues over expenditures 10,250 3,588
Fund balance -beginning 41,243 37,655
Fund balance -ending $51,493 $41,243
126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)
COMBINING BALANCE SHEET Statement 30
December 31, 2005
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 235 Authority
Assets
Cash and investments 5514,720 $163,500 $38,927 $717,147
Receivables:
Accounts 2,882 236 - 3,118
Interest 3,016 838 351 4,205
Due from other governmental units 104,237 - - 104,237
Interfund receivable - 8,794 - 8,794
Total assets 5624,855 5173,368 $39,278 $837,501
Liabilities and Fund Balance
Liabilities:
Accounts payable $63,002 $4,556 $ - 567,558
Due to other governmental units 17,628 18,448 - 36,076
Interfund payable 17,236 - - 17,236
Deposits 12,875 7,477 - 20,352
Total liabilities 110,741 30,481 0 141,222
Fund balance:
Reserved for program expenditures 514,114 - - 514,114
Unreserved:
Designated for maintenance - 142,887 - 142,887
Undesignated - - 39,278 39,278
Total fund balance 514,114 142,887 39,278 696,279
Total liabilities and fund balance 5624,855 5173,368 $39,278 $837,501
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS -HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005 Statement 31
Parkview Parkview Total
Villa Villa Rental Housing and
North South Housing Redevelopment
Fund 203 Fund 213 Fund 235 Authority
Revenues:
Intergovernmental $225,507 $ - $ - $225,507
Rents 300,778 233,831 - 534,609
Investment income:
Interest and dividends 12,639 3,510 1,470 17,619
Change in fair value (4,144) (1,151) (482) (5,777)
Other revenues:
Miscellaneous 3,505 2,431 - 5,936
Total revenues 538,285 238,621 988 777,894
Expenditures:
Personal services 22,288 18,710 - 40,998
Supplies 27,865 7,785 - 35,650
Other services and charges 395,648 194,861 15,000 605,509
Capital outlay 86,200 - - 86,200
Total expenditures 532,001 221,356 15,000 768,357
Revenues over (under) expenditures 6,284 17,265 (14,012) 9,537
Fund balance -beginning 507,830 125,622 53,290 686,742
Fund balance -ending $514,114 $142,887 $39,278 $696,279
128
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY- Statement 32
PARKVIEW VILLA NORTH FUND 203
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 3 1, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004
2005
Budget Amounts
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 (under) expenditures
Fund balance -beginning
Fund balance -ending
Original Final
$90,000 $90,000
290,412 290,412
5,000 5,000
Variance with
Final Budget- 2004
Actual Positive Actual
Amounts (Negative) Amounts
$225,507 $135,507 $231,065
300,778 10,366 291,657
12,639 7,639 16,607
(4,144) (4,144) (719)
388,256 388,256 538,285 150,029 539,460
16,884 22,512 22,288 224
23,450 23,450 27,865 (4,415)
326,904 326,904 395,648 (68,744)
- - 86,200 (86,200)
367,238 372,866 532,001 (159,135)
$21,018 $15,390 6,284 ($9,106)
$514,114
17,064
27,077
297,643
102,771
444,555
94,905
412,925
$507,830
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY - Statement 33
PARKVIEW VILLA SOUTH FUND 213
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL
For The Year Ended December 31, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004
2005
Revenues:
Rents
Investment income:
Interest and dividends
Change in fair value
Other
Total revenues
Expenditures:
Personal services
Supplies
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Fund balance -beginning
Fund balance -ending
Budgeted Amounts
Original Final
$232,275 $232,275
6,365 6,365
Variance with
Final Budget- 2004
Actual Positive Actual
Amounts (Negative) Amounts
$233,831 $1,556 $207,562
3,510 (2,855) 4,074
(1.1511 (1.1511 (1771
240,231 240,231 238,621
16,884 11,256 18,710
10,955 10,955 7,785
176.091 176.091 194.861
(1,610) 214,497
(7,454) 13,835
3,170 7,574
(18.7701 179.770
228,730 223,102 221,356 1,746 201,179
$11,501 $17,129 17,265 $136 13,318
$142,887
$125,622
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -HOUSING & REDEVELOPMENT AUTHORITY
RENTAL HOUSING FUND 235
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Actual Amounts For the Year Ended December 3 1, 2004 Statement 34
2005 2004
Revenues:
Rents $ - $400
Investment income:
Interest and dividends 1,470 1,979
Change in fair value (482) (86)
Other revenue:
Miscellaneous - 179
Total revenues 988 2,472
Expenditures:
Other services and charges 15,000 2,606
Revenues over (under) expenditures (14,012) (134)
Fund balance -beginning 53,290 53,424
Fund balance -ending $39,278 $53,290
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS -ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 35
BUSINESS REVOLVING LOAN FUND 299
BALANCE SHEET
December 31, 2005
With Comparative Totals For December 3 1, 2004
2005 2004
Assets
Cash and investments $356,965 $306,217
Receivables:
Interest 2,690 2,983
Loans 541 3,620
Interfund receivable - 39,686
Real estate held for resale 21,113 21,113
Total assets $381,309 $373,619
Liabilities and Fund Balance
Liabilities:
Deferred revenue $541 $3,620
Fund balance:
Reserved for real estate held for resale 21,113 21,113
Reserved for program expenditures 306,426 306,426
Unreserved:
Undesignated 53,229 42,460
Total fund balance 380,768 369,999
Total liabilities and fund balance $381,309 $373,619
132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND -ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT)
BUSINESS REVOLVING LOAN FUND 299
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For The Year Ended December 31, 2005
With Comparative Totals For the Year Ended December 31, 2004
Statement 36
2005 2004
Revenues:
Fees/program revenues $3,192 $3,192
Investment income:
Interest and dividends 11,273 14,166
Change in fair value (3,696) (614)
Total revenues 10,769 16,744
Expenditures - -
Revenues over expenditures 10,769 16,744
Fund balance -beginning 369,999 353,255
Fund balance -ending $380,768 $369,999
133
134
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following kinds of Nonmaj or Debt Service Funds during
the year:
Tax Increment Bond Funds -are separate funds used to account for the revenues and
expenditures of each separate Tax Increment Bond Issue or Tax Increment Note. This debt is
repaid primarily from tax increments.
Special Assessment Improvement Bond Funds -are separate funds used to account for the
revenues and expenditures of each separate Special Assessment Improvement Bond Issue. This
debt is repaid primarily from special assessments.
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2005
Tax Sheffield
Increment TIF
Bonds Redevelopment
Fund 3 76 Fund 3 77
Assets
Cash and investments $5,474 $32,402
Receivables:
Taxes:
Unremitted 4,741 3,485
Delinquent 18,562 -
Interest - 61
Total assets $28,777 $35,948
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ -
Interfundpayable - 428,975
Deferred revenue:
Property taxes -delinquent 18,562 -
Total liabilities 18,562 428,975
Fund balance:
Unreserved:
Designated for debt service 10,215 -
Undesignated - (393,027)
Total fund balance 10,215 (393,027)
Total liabilities and fund balance $28,777 $35,948
136
Statement 37
G.O.
Multi-Use G.O. Tax Increment G.O. Improvement/
Redevelopment Refunding Improvement Revenue Total
Plan Bonds 2004A 1999A 2003A Nonmajor Debt
Fund 385 Fund 350 Fund 387 Fund 388 Service Funds
$ - $9,247 $512,385 $488,625 $1,048,133
10 - - - 8,236
- - - - 18,562
- 28 3,662 1,996 5,747
$10 $9,275 $516,047 $490,621 $1,080,678
$6,745 $ - $ - $ - $6,745
12,784 - - - 441,759
- - - - 18,562
19,529 0 0 0 467,066
- 9,275 516,047 490,621 1,026,158
(19,519) - - - (412,546)
(19,519) 9,275 516,047 490,621 613,612
$10 $9,275 $516,047 $490,621 $1,080,678
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2005
Revenues:
Tax increment collections
Intergovernmental
Investment income:
Interest and dividends
Change in fair value
Total revenues
Expenditures:
Current:
Other services and charges
Debt service:
Principal retirement
Interest and fiscal charges
Developer incentives
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance (deficit) -beginning
Fund balance (deficit) -ending
Tax Sheffield
Increment TIF
Bonds Redevelopment
Fund 376 Fund 377
$737,083 $58,441
90,054 6,018
- 255
- (84)
827,137 64,630
14,415 285
- 22,899
14,415 23,184
812,722 41,446
(920,750) -
(920,750) 0
(108,028) 41,446
118,243 (434,473)
$10,215 ($393,027)
138
Statement 38
G.O.
Multi-Use G.O. Tax Increment G.O. Improvement/
Redevelopment Refunding Bonds Improvement Revenue Total Nonmajor
Plan 2004A 1999A 2003A Debt Service
Fund 3 8 5 Fund 3 5 0 Fund 3 8 7 Fund 3 8 8 Funds
$23,436 $ - $ - $ - $818,960
172 - - - 96,244
- 118 15,345 8,363 24,081
- (39) (5,032) (2,742) (7,897)
23,608 79 10,313 5,621 931,388
1,453 - - - 16,153
- - 95,000 74,331 169,331
- 32,562 19,451 38,011 112,923
5,578 - - - 5,578
7,031 32,562 114,451 112,342 303,985
16,577 (32,483) (104,138) (106,721) 627,403
- 6,323 35,241 255,221 296,785
- - - - (920,750)
0 6,323 35,241 255,221 (623,965)
16,577 (26,160) (68,897) 148,500 3,438
(36,096) 35,435 584,944 342,121 610,174
($19,519) $9,275 $516,047 $490,621 $613,612
139
140
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmaj or Capital Project Funds during the
year:
Capital Improvement Fund 3 90 & 401 -used to account for Capital Project Funds whereby
funding is provided by a number of internal and external sources.
Downtown Parking Maintenance Fund 290 & 405 -used for maintenance of the West Side
Par ing.
Capital Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City
identified as Sheffield Neighborhood.
Capital Improvement Parks Fund 412 - used to account for improvements in City parks.
Capital Improvement PVVS Fund 414 -used to account for improvements to Parkview Villa
South building.
Infrastructure Replacement Fund 430 - used to fund replacement of City infrastructure.
Capital Equipment Fire Fund 439 - used to fund replacement of fire capital assets.
Capital Equipment Cable TV Fund 440 - used to fund replacement of cable capital assets.
Capital Buildin L.~v Fund 450 - used to fund replacement of the library building.
Anoka Co JLEC Police Computer Equipment Fund 481- used to account for the City's share of
a j oint purchasing agreement. Under the terms of certain bonds issued by Anoka County,
expenditures from this fund are limited to the costs of information systems used for law
enforcement.
TIF District #2 Fund 3 86 - 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 370 & 379 -used to account for revenues and expenditures located
within the Scattered Site Tax Increment Financing District.
141
TIF Transition Block Fund 389 -used to account for revenues and expenditures located within
the Transition Block Tax Increment Financing District.
TIF 4747 Central Avenue Fund 471 -used to account for revenues and expenditures located
within the K-Mart/Central Avenue TIF.
142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2005
Statement 39
Page 1 of 2
Downtown Capital Capital
Capital Parking Sheffield Improvement
Improvement Maintenance Redevelopment Parks
390 & 401 Funds 290 & 405 Fund 410 Fund 412
Assets
Cash and investments
Receivables:
Interest
Interfund receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable -retained percentage
Interfund payable
Total liabilities
Fund balance:
Reserved for:
Program expenditures
Unreserved:
Designated for capital improvement
Undesignated
Total fund balance
Total liabilities and fund balance
$169,264
723
600,000
$769,987
$35,553
1,633
37,186
732,801
732,801
$769,987
$236,377
1,787
$23 8,164
$ -
46,572
46,572
191,592
191,592
$23 8,164
$913,133
$913,133
$641
641
912,492
912,492
$913,133
$1,007,978
7,510
$1,015,488
$2,921
2,921
1,012,567
1,012,567
$1,015,488
143
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2005
Capital
Improvement Infrastructure
PVVS Replacement
Fund 414 Fund 430
Assets
Cash and investments
Receivables:
Interest
Interfund receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable -retained percentage
Interfund payable
Total liabilities
Fund balance:
Reserved for:
Program expenditures
Unreserved:
Designated for capital improvement
Undesignated
Total fund balance
Total liabilities and fund balance
$25,899
196
$26,095
$ -
0
26,095
26,095
$26,095
$196,357
1,299
$197,656
$ -
0
197,656
197,656
$197,656
Capital
Equipment
Fire
Fund 439
$273,562
2,258
$275,820
$ -
0
275,820
275,820
$275,820
Capital
Equipment
Cable TV
Fund 440
$321,898
2,433
$324,331
$ -
0
324,331
324,331
$324,331
144
Statement 39
Page 2 of 2
Capital Anoka Co JLEC TIF TIF TIF Total
Building Police Computer TIF TIF Scattered Site Transition 4747 Central Nonmajor
Library Equipment District #2 Medtronics Funds 370 Block Avenue Capital
Fund 450 Fund 481 Fund 386 Fund 378 & 379 Fund 389 Fund 371 Project Funds
$200,000 $11,400 $ - $338,488 $48,682 $54,495 $48,642 $3,846,175
- 175 2 2,034 168 459 108 19,152
- - - 14,259 - - - 614,259
$200,000 $11,575 $2 $354,781 $48,850 $54,954 $48,750 $4,479,586
$ - $1,041 $ - $94,724 $ - $41,180 $ - $176,060
- - - - - - - 1,633
- - 1,475 - - - - 48,047
0 1,041 1,475 94,724 0 41,180 0 225,740
- 10,534 - - - - - 10,534
200,000 - - - - - - 3,873,354
- - (1,473) 260,057 48,850 13,774 48,750 369,958
200,000 10,534 (1,473) 260,057 48,850 13,774 48,750 4,253,846
$200,000 $11,575 $2 $354,781 $48,850 $54,954 $48,750 $4,479,586
145
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2005
Statement 40
Page 1 of 2
Revenues:
Tax increment collections
Intergovernmental
Rents
Investment income:
Interest and dividends
Change in fair value
Other revenues:
Park dedication fees
Miscellaneous
Total revenues
Expenditures:
Supplies
Other services and charges
Capital outlay
Developer incentives
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance (deficit) -beginning
Fund balance (deficit) -ending
Downtown Capital Capital
Capital Parking Sheffield Improvement
Improvement Maintenance Redevelopment Parks
Funds 390 & 401 Funds 290 & 405 Fund 410 Fund 412
$ - $ - $ - $ -
- - - 1,690
3,028 7,487 - 31,470
(993) (2,455) - (10,319)
- - - 23,360
417 - - 570
2,452 5,032 0 46,771
417 41,623 641 47,382
417 41,623 641 47,382
2,035 (36,591) (641) (611)
735 - 700,000 -
735 0 700,000 0
2,770 (36,591) 699,359 (611)
730,031 228,183 213,133 1,013,178
$732,801 $191,592 $912,492 $1,012,567
147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2005
Capital Capital Capital Capital
Improvement Infrastructure Equipment Equipment Building
PVVS Retilacement Fire Cable TV Library
Revenues:
Tax increment collections
Intergovernmental
Rents
Investment income:
Interest and dividends
Change in fair value
Other revenues:
Park dedication fees
Miscellaneous
Total revenues
Expenditures:
Supplies
Other services and charges
Capital outlay
Developer incentives
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance (deficit) -beginning
Fund balance (deficit) -ending
820 5,443 9,462 10,195 -
(269) (1,785) (3,103) (3,343) -
551 3,658 6,359 6,852
0
- - 39,600 - -
- 600 9,288 - -
- - 33,275 - -
0 600 82,163 0 0
551 3,058 (75,804) 6,852 0
- 50,000 - - -
0 50,000 0 0 0
551 53,058 (75,804) 6,852 0
25,544 144,598 351,624 317,479 200,000
$26,095 $197,656 $275,820 $324,331 $200,000
148
Statement 40
Page 2 of 2
Anoka Co JLEC TIF TIF TIF Total
Police Computer TIF TIF Scattered Site Transition 4747 Central Nonmajor
Equipment District #2 Medtronics Funds 370 Block Avenue Capital
Fund 481 Fund 386 Fund 378 & 379 Fund 389 Fund 371 Project Funds
$ - $1,105 $118,423 $33,793 $65,227 $48,445 $266,993
- - - 5,197 - - 5,197
- - - - - - 1,690
735 6 8,521 706 1,922 454 80,249
(241) (2) (2,794) (232) (630) (149) (26,315)
- - - - - - 23,360
- - - - - - 987
494 1,109 124,150 39,464 66,519 48,750 352,161
12,908 - - - - 52,508
4,853 286 286 746 4,515 - 110,637
- - - - - - 33,275
- - 141,043 - 105,555 - 246,598
17,761 286 141,329 746 110,070 0 443,018
(17,267)
27.801 -
27,801
823 (17,179)
0
0
38,718 (43,551)
0
0
48,750 (90,857)
- 778.536
0 778,536
10,534 823 (17,179) 38,718 (43,551) 48,750 687,679
- (2,296) 277,236 10,132 57,325 - 3,566,167
$10,534 ($1,473) $260,057 $48,850 $13,774 $48,750 $4,253,846
149
150
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 -used to account for revenues and expenses associated with services to area
rest ents.
Sewer Utility -used to account for revenues and expenses associated with sewer disposal
within the City.
Refuse Utility -used to account for revenues and expenses associated with organized
collection of refuse and recycling in the City.
Storm Sewer Utility Fund -used to account for revenues and expenses associated with storm
water isposa .
Liquor Fund -used to account for revenues and expenses associated with the operation of three
off sale liquor stores.
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 31, 2004
Statement 41
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for
uncollectables)
Interest
Interfund receivable
Inventory - at cost
Total current assets
Noncurrent assets:
Capital assets:
Land
Buildings
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
Due to other governmental units
Interfund payable
Accrued interest payable
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
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2005 2004
$9,611 $ - $ - $284,228 $293,839 $471,732
397,740 - - - 397,740 374,376
- 2,939 - 1,354 4,293 4,394
_ Z7h RhA _ _ Z7h RhA Zh(1(14(1
409,007 379,808 0 285,582 1,074,397 1,214,482
45,223 - - - 45,223 45,223
447,305 - - - 447,305 447,305
6,315,282 - - - 6,315,282 6,315,282
25,259 - - - 25,259 25,259
330,090 - - - 330,090 300,529
- - 534,512 - 534,512 198,500
7,163,159 0 534,512 0 7,697,671 7,332,098
(2,830,983) - - - (2,830,983) (2,650,117)
4,332,176 0 534,512 0 4,866,688 4,681,981
4,332,176 0 534,512 0 4,866,688 4,681,981
4,741,183 379,808 534,512 285,582 5,941,085 5,896,463
6,857 - 1,594 - 8,451 7,544
10,735 - - - 10,735 3,189
157,818 - - - 157,818 73,228
397,920 - 1,053,508 - 1,451,428 1,425,672
- - - 21,632 21,632 23,592
596 - - - 596 430
- - - 174,480 174,480 158,258
573,926 0 1,055,102 196,112 1,825,140 1,691,913
15,006 - - - 15,006 13,943
- - - 1,297,107 1,297,107 1,471,587
15,006 0 0 1,297,107 1,312,113 1,485,530
588,932 0 1,055,102 1,493,219 3,137,253 3,177,443
4,332,176 - 534,512 (1,471,587) 3,395,101 3,052,136
- - - 263,950 263,950 229,021
(17A A~51 X79 R(1R (1 (155 1(l~l - (R55 71 Al (5h~ 1 X71
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 42
Capital
Equipment Capital
Operating Replacement Construction Debt Totals
Account Account Account Service 2005 2004
Operating revenues:
Charges for services:
Customer services $56,969 $ - $ - $ - $56,969 $40,884
Penalties 36,435 - - - 36,435 33,670
Charges for sales:
Water 1,707,703 - - - 1,707,703 1,614,143
Meter 9,447 - - 68,160 77,607 72,156
Total operating revenues 1,810,554 0 0 68,160 1,878,714 1,760,853
Operating expenses:
Cost of sales and services 975,178 - - - 975,178 862,514
Distribution 475,469 - 1,317 - 476,786 513,594
Administration 14,778 - - - 14,778 20,406
Depreciation 186,153 - - - 186,153 180,558
Total operating expenses 1,651,578 0 1,317 0 1,652,895 1,577,072
Net income (loss) from operations 158,976 0 (1,317) 68,160 225,819 183,781
Nonoperating revenues (expenses):
Investment income:
Interest and dividends - 12,317 - 5,673 17,990 20,872
Change in fair value - (4,039) - (1,860) (5,899) (905)
Miscellaneous revenues 6,576 2,700 - - 9,276 10,300
Interest and fiscal charges - - - (52,661) (52,661) (57,387)
Total nonoperating revenues (expenses) 6,576 10,978 0 (48,848) (31,294) (27,120)
Net income (loss) before transfers 165,552 10,978 (1,317) 19,312 194,525 156,661
Transfers in 33,073 25,000 2,052 173,875 234,000 212,050
Transfers out (313,781) (29,197) (735) - (343,713) (346,484)
Total transfers (280,708) (4,197) 1,317 173,875 (109,713) (134,434)
Change in net assets (115,156) 6,781 0 193,187 84,812 22,227
Total net assets -beginning 4,267,407 373,027 (520,590) (1,400,824) 2,719,020 2,696,793
Total net assets -ending $4,152,251 $379,808 ($520,590) ($1,207,637) $2,803,832 $2,719,020
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 3 1, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 43
2005 2004
Cash flows from operating activities:
Cash received from customers $1,855,350 $1,733,909
Cash paid to suppliers for goods and services (1,112,253) (1,164,907)
Cash payments to employees for services (257,933) (254,243)
Miscellaneous revenues 9,276 10,300
Net cash flows from operating activities 494,440 325,059
Cash flows from noncapital financing activities:
Transfers in 234,000 212,050
Transfers out (343,713) (346,484)
Interfund receivable repaid by (advanced to) other funds (16,829) 307,986
Interfund payable advanced to (repaid by) other funds 25,756 451,787
Net cash flows from noncapital financing activities (100,786) 625,339
Cash flows from capital and related financing activities:
Acquisition of capital assets (370,860) (292,057)
Principal payments -bonds (158,258) (149,145)
Interest and fiscal charges (54,621) (64,037)
Net cash flows from capital and related financing activities (583,739) (505,239)
Cash flows from investing activities:
Investment income:
Interest and dividends 18,091 21,671
Change in fair value (5,899) (905)
Net cash flows from investing activities 12,192 20,766
Net increase (decrease) in cash and cash equivalents (177,893) 465,925
Cash and cash equivalents -January 1 471,732 5,807
Cash and cash equivalents -December 31 $293,839 $471,732
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $225,819 $183,781
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 9,276 10,300
Depreciation expense 186,153 180,558
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (23,364) (23,200)
(Increase) decrease in inventory, at cost 2,284 (641)
Increase (decrease) in accounts payable 907 1,082
Increase (decrease) in accrued salaries and withholdings payable 7,546 (1,480)
Increase (decrease) in due to other governmental units 84,590 (22,573)
Increase (decrease) in deposits - (3,744)
Increase (decrease) in compensated absences payable 1,229 976
Total adjustments 268,621 141,278
Net cash flows from operating activities $494,440 $325,059
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 31, 2004 Statement 44
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2005 2004
Assets
Current assets:
Cash and cash equivalents $117,783 $182,504 $352,512 $5,460 $658,259 $862,436
Receivables:
Accounts (net of allowance for
uncollectibles) 252,808 - - - 252,808 236,238
Interest 9,550 3,605 2,935 24 16,114 18,647
Due from other governmental units 5,999 - - - 5,999 -
Interfundreceivables 1,074,559 196,596 428,975 - 1,700,130 1,773,391
Prepayments 66,210 - - - 66,210 64,198
Total current assets 1,526,909 382,705 784,422 5,484 2,699,520 2,954,910
Noncurrent assets:
Due from other governmental units 132,299
Capital assets:
Land 36,586
Buildings 45,201
Improvements other than buildings 4,685,437
Office furniture and fixtures 40,964
Machinery and equipment 640,591
Construction in process -
Total capital assets 5,448,779
Less: Accumulated depreciation (3,107,961)
Total capital assets (net of
accumulated depreciation) 2,340,818
Total noncurrent assets 2,473,117
- - - 132,299 155,785
30,Jb0 Jn,Jbn
- - - 45,201 45,201
- - - 4,685,437 4,685,437
- - - 40,964 40,964
- - - 640,591 520,460
- 193,933 - 193,933 96,210
0 193,933 0 5,642,712 5,424,858
- - - (3,107,961) (2,958,378)
- 193,933 - 2,534,751 2,466,480
0 193,933 0 2,667,050 2,622,265
Total assets 4,000,026 382,705 978,355 5,484 5,366,570 5,577,175
Liabilities
Current liabilities:
Accounts payable 6,196 - 688 - 6,884 6,975
Accrued salaries and withholdings payable 5,839 - 3,733 - 9,572 19,572
Accrued interest payable - - - 373 373 436
Compensated absences payable -current 1,002 - - - 1,002 430
Bonds payable -current - - - 3,964 3,964 3,865
Total current liabilities 13,037 0 4,421 4,337 21,795 31,278
Noncurrent liabilities:
Compensated absences payable -noncurrent 25,226 - - - 25,226 13,943
Bonds payable -noncurrent - - - 17,641 17,641 21,605
Total noncurrent liabilities 25,226 0 0 17,641 42,867 35,548
Total liabilities 38,263 - 4,421 21,978 64,662 66,826
Net Assets
Invested in capital assets, net of related debt 2,340,818 - 193,933 (21,604) 2,513,147 2,441,010
Restricted for debt service - - - 5,110 5,110 4,823
Unrestricted 1,620,945 382,705 780,001 - 2,783,651 3,064,516
Total net assets $3,961,763 $382,705 $973,934 ($16,494) $5,301,908 $5,510,349
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF REVENUES, EXP ENSES AND C HANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2005 2004
Operating revenues:
Charges for sales and services:
Sewer service charges $1,139,578 $ - $ - $ - $1,139,578 $1,011,419
Operating expenses:
Cost of sales and services 770,375 - - - 770,375 704,853
Collection 299,842 - 54,608 - 354,450 336,856
Administration 11,331 - - - 11,331 17,322
Depreciation 169,816 - - - 169,816 142,041
Total operating expenses 1,251,364 0 54,608 0 1,305,972 1,201,072
Net income (loss) from operations (111,786) 0 (54,608) 0 (166,394) (189,653)
Nonoperating revenues (expenses)
Investment income:
Interest and dividends 40,016 15,107 35,373 101 90,597 113,048
Change in fair value (13,121) (4,954) (4,033) (33) (22,141) (3,839)
Miscellaneous revenues 6,232 - - - 6,232 8,113
Interest and fiscal charges - - - (915) (915) (1,067)
Miscellaneous expenses - (2,911) - - (2,911) (1,249)
Total nonoperating
revenues (expenses) 33,127 7,242 31,340 (847) 70,862 115,006
Net income (loss) before transfers (78,659) 7,242 (23,268) (847) (95,532) (74,647)
Transfers in 142,811 25,000 54,608 5,000 227,419 272,505
Transfers out (199,963) (140,365) - - (340,328) (404,419)
Total transfers (57,152) (115,365) 54,608 5,000 (112,909) (131,914)
Change in net assets (135,811) (108,123) 31,340 4,153 (208,441) (206,561)
Net assets -beginning 4,097,574 490,828 942,594 (20,647) 5,510,349 5,716,910
Net assets -ending $3,961,763 $382,705 $973,934 ($16,494) $5,301,908 $5,510,349
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 46
2005 2004
Cash flows from operating activities:
Cash received from customers $1,140,495 $1,048,199
Cash paid to suppliers for goods and services (898,841) (841,864)
Cash payments to employees for services (237,563) (211,250)
Miscellaneous revenues 6,232 8,113
Miscellaneous expenses (2,911) (1,249)
Net cash flows from operating activities 7,412 1,949
Cash flows from noncapital financing activities:
Transfers in 227,419 272,505
Transfers out (340,328) (404,419)
Interfund receivable repaid by (advanced to) other funds 73,261 (814,977)
Net cash flows from noncapital financing activities (39,648) (946,891)
Cash flows from capital and related financing activities:
Acquisition of capital assets (238,087) (306,433)
Principal payments -bonds (3,865) (3,666)
Interest and fiscal charges (978) (1,124)
Net cash flows from capital and related financing activities (242,930) (311,223)
Cash flows from investing activities:
Investment income:
Interest and dividends 93,130 118,728
Change in fair value (22,141) (3, 83 9)
Net cash flows from investing activities 70,989 114,889
Net increase (decrease) in cash and cash equivalents (204,177) (1,141,276)
Cash and cash equivalents -January 1 862,436 2,003,712
Cash and cash equivalents -December 31 $658,259 5862,436
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) ($166,394) ($189,653)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 6,232 8,113
Miscellaneous expenses (2,911) (1,249)
Depreciation expense 169,816 142,041
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (16,570) 9,028
(Increase) decrease in due from other governmental units 17,487 27,752
(Increase) decrease in prepayments (2,012) (6,929)
Increase (decrease) in accounts payable (91) (5,523)
Increase (decrease) in accrued salaries and withholdings payable (10,000) 17,393
Increase (decrease) compensated absences payable 11,855 976
Total adjustments 173,806 191,602
Net cash flows from operating activities 57,412 $1,949
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 47
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for uncollectibles)
Interest
Total current assets
Noncurrent assets:
Capital assets:
Buildings
Improvements other than buildings
Machinery and equipment
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
2005 2004
$395,549 $187,101
287,098 286,170
2,116 2,589
684,763 475,860
6,000 6,000
11,566 11,566
97,124 97,124
114,690 114,690
(74,468) (63,299)
40,222 51,391
40,222 51,391
724,985 527,251
268,467 90,471
40,222 51,391
416,296 3 85,3 89
$456,518 $436,780
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 48
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
Total nonoperating revenues (expenses)
Net income before transfers
Transfers in
Transfers out
Change in net assets
Total net assets -beginning
Total net assets -ending
2005 2004
$1,256,180 $1,255,011
1,075,850 1,244,428
10,912 14,081
11,887 15,514
839 -
11,169 11,169
1,110,657 1,285,192
145,523 (30,181)
8,867 12,299
(2,907) (533)
46,170 46,635
52,130 58,401
197,653 28,220
2,963 -
(180,878) (189,912)
19,738 (161,692)
436,780 598,472
$456,518 $436,780
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 49
2005 2004
Cash flows from operating activities:
Cash received from customers $1,255,252 $1,247,253
Cash paid to suppliers for goods and services (921,126) (1,287,348)
Cash payments to employees for services (366) (658)
Miscellaneous revenues 46,170 46,635
Net cash flows from operating activities 379,930 5,882
Cash flows from noncapital financing activities:
Transfers in 2,963 -
Transfers out (180,878) (189,912)
Net cash flows from noncapital financing activities (177,915) (189,912)
Cash flows from investing activities:
Investment income:
Interest and dividends 9,340 13,770
Change in fair value (2,907) (533)
Net cash flows from investing activities 6,433 13,237
Net increase (decrease) in cash and cash equivalents 208,448 (170,793)
Cash and cash equivalents -January 1 187,101 357,894
Cash and cash equivalents -December 31 $395,549 5187,101
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) 5145,523 ($30,181)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 46,170 46,635
Depreciation expense 11,169 11,169
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (928) (7,758)
Increase (decrease) in accounts payable 177,996 (13,983)
Total adjustments 234,407 36,063
Net cash flows from operating activities 5379,930 $5,882
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 31, 2004
Statement 50
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for
uncollectibles)
Interest
Due from other governmental units
Interfund receivable
Total current assets
Noncurrent assets:
Capital assets:
Land
Improvements other than buildings
Construction in process
Total capital assets
Less: Accumulated depreciation
Total capital assets (net of
accumulated depreciation)
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Accrued salaries and withholdings payable
Due to other governmental units
Interfund payable
Accrued interest payable
Compensated absences payable -current
Bonds payable -current
Total current liabilities
Noncurrent liabilities:
Compensated absences payable -noncurrent
Bonds payable -noncurrent
Total liabilities
Net Assets
Invested in capital assets, net of related debt
Restricted for debt service
Unrestricted
Total net assets
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2005 2004
$ - $31,241 $5,086 $117,761 $154,088 $119,466
58,997 - - - 58,997 61,678
- 214 565 438 1,217 681
- - - - - > > ~_4n7
58,997 31,455 5,651 118,199 214,302 319,505
254,724 - - - 254,724 254,724
1,148,708 - - - 1,148,708 1,148,708
- - 205,564 - 205,564 100,538
1,403,432 0 205,564 0 1,608,996 1,503,970
(214,296) - - - (214,296) (156,861)
1,189,136 - 205,564 - 1,394,700 1,347,109
1,189,136 0 205,564 0 1,394,700 1,347,109
1,248,133 31,455 211,215 118,199 1,609,002 1,666,614
83 - - - 83 2,191
1,350 - - - 1,350 650
- - - - - 16
196,596 - - - 196,596 255,775
- - - 11,607 11,607 13,135
47 - - - 47 -
- - - 109,283 109,283 103,545
198,076 0 0 120,890 318,966 375,312
1.1 Rh - - - 1.1 Rh
199,262 0 0 739,123 938,385 1,102,829
1,189,136 - 205,564 (727,516) 667,184 516,047
- - - 106,592 106,592 103,545
(140,265) 31,455 5,651 - (103,159) (55,807)
$1,048,871 $31,455 $211,215 ($620,924) $670,617 $563,785
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 51
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Capital
Equipment Capital Debt
Operating Replacement Construction Service Totals
Account Account Account Account 2005 2004
Operating revenues:
Charges for sales and services:
Storm sewer service charges
Operating expenses:
Collection
Administration
Depreciation
Total operating expenses
Net income (loss) from operations
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Intergovernmental
Interest and fiscal charges
Total nonoperating
revenues (expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Total transfers
Change in net assets
Total net assets -beginning
Total net assets -ending
$274,907 $ - $ - $ - $274,907 $284,223
73,992 - 3,396 - 77,388 77,046
9,347 - - - 9,347 9,892
57,435 - - - 57,435 51,998
140,774 0 3,396 0 144,170 138,936
134,133 0 (3,396) 0 130,737 145,287
- 898 2,373 1,834 5,105 3,230
- (294) (778) (601) (1,673) (140)
- - - - - 113,407
- - - (28,372) (28,372) (32,048)
0 604 1,595 (27,139) (24,940) 84,449
134,133 604 (1,801) (27,139) 105,797 229,736
639 5,800 33,296 133,732 173,467 465,493
(172,432) - - - (172,432) (474,262)
(171,793) 5,800 33,296 133,732 1,035 (8,769)
(37,660) 6,404 31,495 106,593 106,832 220,967
1,086,531 25,051 179,720 (727,517) 563,785 342,818
$1,048,871 $31,455 $211,215 ($620,924) $670,617 $563,785
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 52
2005 2004
Cash flows from operating activities:
Cash received from customers 5277,588 5271,581
Cash paid to suppliers for goods and services (65,071) (76,889)
Cash payments to employees for services (21,855) (7,344)
Net cash flows from operating activities 190,662 187,348
Cash flows from noncapital financing activities:
Transfers in 173,467 465,493
Transfers out (172,432) (474,262)
Interfund receivable repaid by (advanced to) other funds 24,273 (24,273)
Interfund payable (repaid to) advanced by other funds (59,179) 93,082
Net cash flows from noncapital financing activities (33,871) 60,040
Cash flows from capital and related financing activities:
Acquisition of capital assets (105,026) (96,005)
Prioceeds of capital grants and contributions 113,407 -
Principalpayments -bonds (103,546) (97,983)
Interest and fiscal charges (29,900) (34,668)
Net cash flows from capital and related financing activities (125,065) (228,656)
Cash flows from investing activities:
Investment income:
Interest and dividends 4,569 4,635
Change in fair value (1,673) (140)
Net cash flows from investing activities 2,896 4,495
Net increase in cash and cash equivalents 34,622 23,227
Cash and cash equivalents- January 1 119,466 96,239
Cash and cash equivalents -December 31 $154,088 $119,466
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) 5130,737 5145,287
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 57,435 51,998
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 2,681 (12,642)
Increase (decrease) in accounts payable (2,108) 2,189
Increase (decrease) in accrued salaries and withholdings payable 700 500
Increase (decrease) in due to other governmental units (16) 16
Increase (decrease) compensated absences payable 1,233 -
Total adjustments 59,925 42,061
Net cash flows from operating activities $190,662 $187,348
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 53
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
Noncurrent assets:
Capital assets:
Land
Buildings
Improvements other than buildings
Office furniture and fixtures
Machinery and equipment
Total capital assets
Less: Accumulated depreciation
Net 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
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
Capital
Equipment
Operating Replacement Totals
Account Account 2005 2004
$1,905,508 $29,095 $1,934,603 $2,081,518
885 - 885 1,678
9,666 220 9,886 15,408
874 - 874 1,012
17.426 - 17.426 5.534
3,616,099 29,315 3,645,414 3,746,069
4,360 - 4,360 4,360
162,239 - 162,239 162,239
81,198 - 81,198 81,198
14,791 - 14,791 14,791
349,632 - 349,632 349,632
612,220 0 612,220 612,220
(532,526) - (532,526) (509,609)
79,694 0 79,694 102,611
79,694 0 79,694 102,611
3,695,793 29,315 3,725,108 3,848,680
236,547 - 236,547 388,738
40,189 - 40,189 31,468
62, 847 - 62, 847 62,615
1,762 - 1,762 1,323
341,345 0 341,345 484,144
44,356 - 44,356 42,914
385,701 0 385,701 527,058
79,694 - 79,694 102,611
3,230,398 29,315 3,259,713 3,219,011
$3,310,092 $29,315 $3,339,407 $3,321,622
164
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 54
Capital
Operating Accounts Total Equipment
Top Heights Operating Replacement Totals
Top Valu Valu H Liquor Accounts Account 2005 2004
Operating revenues:
Charges for sales:
Liquor $1,076,697 $799,607 $459,099 $2,335,403 $ - $2,335,403 $2,333,567
Beer 1,379,146 1,103,736 653,986 $3,136,868 - 3,136,868 3,393,837
Wine 353,236 356,427 55,903 $765,566 - 765,566 750,842
Other 213,546 140,643 121,906 $476,095 - 476,095 496,746
Total operating revenues 3,022,625 2,400,413 1,290,894 6,713,932 0 6,713,932 6,974,992
Operating expenses:
Cost of goods sold 2,384,810 1,861,753 964,298 5,210,861 - 5,210,861 5,318,331
Operating expense 617,506 426,729 235,848 1,280,083 - 1,280,083 1,243,987
Depreciation 5,783 13,597 3,537 22,917 - 22,917 12,947
Total operating expenses 3,008,099 2,302,079 1,203,683 6,513,861 0 6,513,861 6,575,265
Net income from operations $14,526 $98,334 $87,211 200,071 0 200,071 399,727
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 40,503 922 41,425 73,172
Change in fair value (13,281) (302) (13,583) (3,172)
Miscellaneous revenues 643 - 643 764
Miscellaneous (expenses) (24) - (24) -
Total nonoperating revenues (expenses) 27,841 620 28,461 70,764
Net income before transfers 227,912 620 228,532 470,491
Transfer out (210,747) - (210,747) (212,062)
Change in net assets 17,165 620 17,785 258,429
Net assets -beginning 3,292,927 28,695 3,321,622 3,063,193
Net assets -ending $3,310,092 $29,315 $3,339,407 $3,321,622
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 55
Cash flows from operating activities:
Cash received from customers
Cash paid to suppliers for goods and services
Cash payments to employees for services
Miscellaneous revenues
Miscellaneous expenses
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers out
2005
$6,714,863
(5,856,482)
(828,532)
643
(24)
30,468
(210,747)
46,947
(13,583)
33,364
(146,915)
2,081,518
$1,934,603
$200,071
2004
$6,973,891
(5,941,065)
(798,087)
764
235,503
(212,062)
(60,251)
74,901
(3,172)
71,729
34,919
2,046,599
$2,081,518
$399,727
Cash flows from capital and related financing activities:
Acquisition of capital assets
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents -January 1
Cash and cash equivalents -December 31
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Miscellaneous expenses
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
(Increase) decrease in inventory, at cost
Increase (decrease) in accounts payable
Increase (decrease) in accrued salaries and withholdings payable
Increase (decrease) in due to other governmental units
Increase (decrease) in compensated absences payable
Total adjustments
Net cash flows from operating activities
643 764
(24) -
22,917 12,947
793 (1,101)
138 853
(11,892) (93)
(40,821) (259,318)
(152,191) 76,114
8,721 7,977
232 (8,844)
1,881 6,477
(169,603) (164,224)
$30,468 $235,503
166
INTERNAL SERVICE FUNDS
Internal Service Funds are used to account for the financing on a cost reimbursement basis of
goods or services provided by one department or agency to other departments or agencies within
the City.
Central Gara e.~ Fund -used to account for the costs of operating a maintenance facility for
automotive equipment used by other City departments. Such costs are billed to other
departments at actual cost plus a fixed overhead factor. The automotive equipment itself is
acquired by the various user departments which are responsible for financing replacement
ve is es as necessary.
Data Processing Fund -used to account for the costs associated with data processing within the
city. All costs are recorded in the fund and allocated to user departments.
Insurance Fund - used to account for certain costs of the City's risk management services and to
build a reserve for catastrophic losses. All costs for claims and claims administration are
recorded in the fund and allocated to user funds based on a percentage risk factor. Insurance
premiums are recorded directly in the user funds.
Compensated Absences Fund -used to account for funds that have been set aside by the City
Council for compensated absences.
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
December 31, 2005
Statement 56
Central Data Compensated Total Internal
Garage Processing Insurance Absences Service Funds
Assets
Current assets:
Cash and cash equivalents $397,640 $666,110 $1,185,047 $668,665 $2,917,462
Receivables:
Accounts (net of allowance
for uncollectibles) 3,001 - - - 3,001
Interest 280 225 8,643 4,636 13,784
Prepayments - - 34,356 - 34,356
Inventory - at cost 43,395 - - - 43,395
Total current assets 444,316 666,335 1,228,046 673,301 3,011,998
Noncurrent assets:
Capital assets:
Buildings 371,383 - - - 371,383
Improvements other than buildings 119,846 - - - 119,846
Machinery and equipment 83,044 69,709 - - 152,753
Total capital assets 574,273 69,709 0 0 643,982
Less: Accumulated depreciation (492,573) (32,558) - - (525,131)
Total capital assets (net of
accumulated depreciation) 81,700 37,151 - - 118,851
Total noncurrent assets 81,700 37,151 0 0 118,851
Total assets 526,016 703,486 1,228,046 673,301 3,130,849
Liabilities
Current liabilities:
Accounts payable 35,971 11,578 - - 47,549
Accrued salaries and withholdings payable 5,324 5,653 - - 10,977
Compensated absences payable -current 678 355 - 24,585 25,618
Total current liabilities 41,973 17,586 0 24,585 84,144
Noncurrent liabilities:
Compensated absences payable -noncurrent 17,060 8,930 - 619,003 644,993
Total noncurrent liabilities 17,060 8,930 0 619,003 644,993
Total liabilities 59,033 26,516 0 643,588 729,137
Net Assets
Invested in capital assets, net of related debt 81,700 37,151 - - 118,851
Unrestricted 385,283 639,819 1,228,046 29,713 2,282,861
Total net assets $466,983 $676,970 $1,228,046 $29,713 $2,401,712
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
Central Data Compensated Total Internal
Garage Processing Insurance Absences Service Funds
$171,723 $ - $ - $ - $171,723
251,634 - - - 251,634
- - 440,908 - 440,908
- - 7,116 - 7,116
91,562 - - - 91,562
514,919 0 448,024 0 962,943
Operating revenues:
Charges for services:
Services to departments
Use of space
Insurance allocation
Recovery of damages
Charges for sales:
Sales of gasoline
Total operating revenues
Operating expenses:
Cost of services and space
Claims
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
Net assets -beginning
Net assets -ending
343,315 218,234 343,584
- - 14.076
359,727 224,300 357,660
155,192 (224,300) 90,364
Statement 57
- 905,133
- 14.076
0 941,687
0 21,256
1,172 941 36,214 19,422 57,749
(384) (309) (11,875) (6,367) (18,935)
7,196 - - - 7,196
7,984 632 24,339 13,055 46,010
163,176 (223,668) 114,703 13,055 67,266
4,000 235,000 - - 239,000
(101,500) - - - (101,500)
(97,500) 235,000 0 0 137,500
65,676 11,332 114,703 13,055 204,766
401,307 665,638 1,113,343 16,658 2,196,946
$466,983 $676,970 $1,228,046 $29,713 $2,401,712
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2005
Statement 58
(1'Pntral Tlata (rmm~PncatPrl Tntal TntPrnal
Cash flows from operating activities:
Cash received from interfund goods and services provided
Cash received for damages
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
Interfund receivable repaid by (advanced to) other funds
Net cash flows from
noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents -January 1
Cash and cash equivalents -December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues
Depreciation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(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 compensated absences payable
Total adjustments
Net cash flows from operating activities
~J14,yly ~ - ~44U,yUb ~bU,bLL ~l,Ulb,44y
- - 7,116 - 7,116
(180,452) (146,226) (353,979) - (680,657)
(144,347) (144,068) - - (288,415)
4,195 - - - 4,195
194,315 (290,294) 94,045 60,622 58,688
4,000 235,000 - - 239,000
(101,500) - - - (101,500)
- - 41,952 - 41,952
(97,500) 235,000 41,952 0 179,452
(6,000) (30,865) - - (36,865)
1,144 943 34,843 14,786 51,716
(384) (309) (11,875) (6,367) (18,935)
760 634 22,968 8,419 32,781
91,575 (85,525) 158,96 69,041 X34,056
306,065 751,635 1,026,082 599,624 2,683,406
$397,640 $666,110 $1,185,047 $668,665 $2,917,462
$155,192 ($224,300) $90,364 $0 $21,256
7,196 - - - 7,196
16,412 6,066 - - 22,478
(3,001) - - - (3,001)
- - 5,876 - 5,876
6,007 - - - 6,007
23,732 (73,180) (2,195) - (51,643)
(32) 818 - - 786
(11,191) 302 - 60,622 49,733
39,123 (65,994) 3,681 60,622 37,432
$194,315 ($290,294) $94,045 $60,622 $58,688
170
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 59
Assets
Current assets:
Cash and cash equivalents
Receivables:
Accounts (net of allowance for uncollectibles)
Interest
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
Net Assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
Capital
Equipment
Operating Replacement Totals
Account Account 2005 2004
$358,642 $38,998 $397,640 $306,065
3,001 - 3,001 -
- 280 280 252
43,395 - 43,395 49,402
405,038 39,278 444,316 355,719
371,383 - 371,383 371,383
119,846 - 119,846 119,846
83,044 - 83,044 77,044
574,273 0 574,273 568,273
(492,573) 0 (492,573) (476,161)
81,700 - 81,700 92,112
81,700 0 81,700 92,112
486,738 39,278 526,016 447,831
35,971 - 35,971 12,239
5,324 - 5,324 5,356
678 - 678 865
41,973 0 41,973 18,460
17,060 - 17,060 28,064
17,060 0 17,060 28,064
59,033 0 59,033 46,524
81,700 - 81,700 92,112
346,005 39,278 385,283 309,195
$427,705 $39,278 $466,983 $401,307
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 60
Capital
Equipment
Operating Replacement Totals
Account Account 2005 2004
Operating revenues:
Charges for services:
Services to departments $171,723 $ - $171,723 $198,020
Use of space 251,634 - 251,634 241,129
Charges for sales:
Sales of gasoline 91,562 - 91,562 75,939
Total operating revenues 514,919 0 514,919 515,088
Operating expenses:
Cost of services and space 343,315 - 343,315 318,195
Depreciation 16,412 - 16,412 32,049
Total operating expenses 359,727 0 359,727 350,244
Net income (loss) from operations 155,192 0 155,192 164,844
Nonoperating revenues (expenses):
Investment income:
Interest and dividends - 1,172 1,172 1,193
Change in fair value - (3 84) (3 84) (51)
Miscellaneous revenues 7,196 - 7,196 485
Total nonoperating revenues (expenses) 7,196 788 7,984 1,627
Net income before transfers 162,388 788 163,176 166,471
Transfers in - 4,000 4,000 4,000
Transfers out (101,500) - (101,500) (94,500)
Total transfers (101,500) 4,000 (97,500) (90,500)
Change in net assets 60,888 4,788 65,676 75,971
Total net assets -beginning 366,817 34,490 401,307 325,336
Total net assets -ending $427,705 $39,278 $466,983 $401,307
172
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 61
2005 2004
Cash flows from operating activities:
Cash received from interfund goods & services provided 5514,919 5517,369
Cash paid to suppliers for goods and services (180,452) (165,285)
Cash payments to employees for services (144,347) (142,751)
Miscellaneous revenues 4,195 485
Net cash flows from operating activities 194,315 209,818
Cash flows from noncapital financing activities:
Transfers in 4,000 4,000
Transfers out (101,500) (94,500)
Net cash flows from noncapital financing activities (97,500) (90,500)
Cash flows from capital and related financing activities:
Acquisition of capital assets (6,000) -
Cash flows from investing activities:
Investment income:
Interest and dividends 1,144 1,178
Change in fair value (384) (52)
Net cash flows from investing activities 760 1,126
Net increase in cash and cash equivalents 91,575 120,444
Cash and cash equivalents -January 1 306,065 185,621
Cash and cash equivalents -December 31 $397,640 5306,065
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss) $155,192 $164,844
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous revenues 7,196 485
Depreciation expense 16,412 32,049
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (3,001) 2,281
(Increase) decrease in inventory, at cost 6,007 980
Increase (decrease) in accounts payable 23,732 3,899
Increase (decrease) in accrued salaries and withholdings payable (32) 3,129
Increase (decrease) in compensated absences payable (11,191) 2,151
Total adjustments 39,123 44,974
Net cash flows from operating activities 5194,315 5209,818
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 62
Operating
Account
Assets
Current assets:
Cash and cash equivalents $636,398
Interest receivable -
Total current assets 636,398
Noncurrent assets:
Capital assets:
Machinery and equipment 69,709
Total capital assets 69,709
Less: Accumulated depreciation (32,558)
Capital assets (net of
accumulated depreciation) 37,151
Total noncurrent assets 37,151
Total assets 673,549
Liabilities
Current liabilities:
Accounts payable 11,578
Accrued salaries and withholdings payable 5,653
Compensated absences payable -current 355
Total current liabilities 17,586
Noncurrent liabilities:
Compensated absences payable -noncurrent 8,930
Total noncurrent liabilities 8,930
Total liabilities 26,516
Net Assets
Invested in capital assets, net of related debt 37,151
Unrestricted 609,882
Total net assets $647,033
Capital
Equipment
Replacement
Account
$29,712
225
29,937
0
0
29,937
0
0
0
29,937
Totals
2005
$666,110
225
666,335
69,709
69,709
(32,558)
37,151
37,151
703,486
11,578
5,653
355
17,586
8,930
8,930
26,516
37,151
$29,937 $676,970
2004
$751,635
227
751,862
3 8, 844
3 8, 844
(26,492)
12,352
12,352
764,214
84,758
4,835
269
89,862
8,714
8,714
98,576
12,352
653,286
$665,638
174
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 63
Capital
Equipment
Operating Replacement Totals
Account Account 2005 2004
Operating revenues $ - $ - $ - $ -
Operating expenses:
Cost of services 218,234 - 218,234 243,537
Depreciation 6,066 - 6,066 353
Total operating expenses 224,300 0 224,300 243,890
Net income (loss) from operations (224,300) 0 (224,300) (243,890)
Nonoperating revenues (expenses):
Investment income:
Interest and dividends - 941 941 1,076
Change in fair value - (309) (309) (46)
Total nonoperating revenues (expenses) 0 632 632 1,030
Net income (loss) before transfers (224,300) 632 (223,668) (242,860)
Transfers in 235,000 - 235,000 299,143
Change in net assets 10,700 632 11,332 56,283
Net assets -beginning 636,333 29,305 665,638 609,355
Net assets -ending $647,033 $29,937 $676,970 $665,638
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DATA PROCESSING FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 64
2005 2004
Cash flows from operating activities:
Cash paid to suppliers for goods and services
Cash payments to employees for services
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Transfers in
Cash flows from capital and related financing activities:
Acquisition of capital assets
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents -January 1
Cash and cash equivalents -December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense
Changes in assets and liabilities:
Increase (decrease) in accounts payable
Increase (decrease) in accrued salaries and withholdings payable
Increase (decrease) in compensated absences payable
Total adjustments
Net cash flows from operating activities
($146,226) ($23,405)
(144,068) (138,404)
(290,294) (161,809)
235,000 299,143
(30,865) (12,705)
943 1,093
(309) (46)
634 1,047
(85,525) 125,676
751,635 625,959
5666,110 5751,635
($224,300) (5243,890)
6,066 353
(73,180) 78,803
818 1,015
302 1,910
(65,994) 82,081
($290,294) ($161,809)
176
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 65
2005 2004
Assets
Current assets:
Cash and cash equivalents $1,185,047 $1,026,082
Receivables:
Interest 8,643 7,272
Interfund receivable - 41,952
Prepayments 34,356 40,232
Total assets 1,228,046 1,115,538
Liabilities
Liabilities
Accounts payable - 2,195
Net Assets
Unrestricted 1,228,046 1,113,343
Total net assets $1,228,046 $1,113,343
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 66
2005 2004
Operating revenues:
Insurance allocation $440,908 $559,680
Recovery of damages 7,116 11,668
Total operating revenues 448,024 571,348
Operating expenses:
Cost of services and space 343,584 269,617
Claims administration - 7,895
Claims 14,076 14,557
Total operating expenses 357,660 292,069
Net income from operations 90,364 279,279
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 36,214 34,535
Change in fair value (11,875) (1,497)
Total nonoperating revenues (expenses) 24,339 33,038
Change in net assets 114,703 312,317
Net assets -beginning 1,113,343 801,026
Net assets -ending $1,228,046 $1,113,343
178
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 67
Cash flows from operating activities:
Cash received from interfund services provided
Cash received for damages
Cash paid to suppliers for goods and services
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Interfund receivable repaid by (advanced to) other funds
Cash flows from investing activities:
Investment income:
Interest and dividends
Change in fair value
Net cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents -January 1
Cash and cash equivalents -December 31
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in due from other governmental units
(Increase) decrease in prepayments
Increase (decrease) in accounts payable
Total adjustments
Net cash flows from operating activities
2005 2004
$440,908 5559,680
7,116 27,457
(353,979) (320,822)
94,045 266,315
41,952 (41,952)
34,843 33,397
(11,875) (1,497)
22,968 31,900
158,965 256,263
1,026,082 769,819
$1,185,047 S 1,026,082
590,364 $279,279
- 15,789
5,876 (29,379)
(2,195) 626
3,681 (12,964)
$94,045 5266,315
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2005
With Comparative Totals For December 3 1, 2004
Statement 68
2005 2004
Assets
Current assets:
Cash and cash equivalents $668,665 $599,624
Interest receivable 4,636 -
Total assets 673,301 599,624
Liabilities
Current liabilities:
Compensated absences payable -current 24,585 17,431
Noncurrent liabilities:
Compensated absences payable -noncurrent 619,003 565,535
Total liabilities 643,588 582,966
Net Assets
Unrestricted 29,713 16,658
Total net assets $29,713 $16,658
180
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004 Statement 69
2005 2004
Operating revenues:
Charges for services $ - $ -
Operating expenses:
Cost ofservices - -
Net income from operations 0 0
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 19,422 -
Change in fair value (6,367) -
Total nonoperating revenues (expenses) 13,055 0
Change in net assets 13,055 0
Net assets -beginning 16,658 16,658
Net assets -ending $29,713 $16,658
181
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2005
With Comparative Totals For The Year Ended December 3 1, 2004
Statement 70
2005 2004
Cash flows from operating activities:
Cash received from interfund services provided $60,622 $4,995
Cash flows from investing activities:
Investment income:
Interest and dividends 14,786 -
Change in fair value (6,367) -
Netcash flows from investing activities 8,419 0
Net increase in cash and cash equivalents 69,041 4,995
Cash and cash equivalents -January 1 599,624 594,629
Cash and cash equivalents -December 31 $668,665 $599,624
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 60,622 4,995
Total adjustments 60,622 4,995
Net cash flows from operating activities $60,622 $4,995
182
AGENCY FUNDS
Agency Funds are used to account for assets held by a government in a trustee or agent capacity
for individuals, private organizations, other governments and the like.
The City of Columbia Heights had the following Agency Funds during the year:
Permit Surchar e.~ Fund -used to account for SAC charges and surcharges collected for and
remitted to the State of Minnesota.
Tri-City GIS Fund -used to account for joint purchases of geographic information services by
the Cities of Columbia Heights, Fridley and Andover.
183
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the Year Ended December 3 1, 2005
Statement 71
Balance Balance
Tanuarv 1 _ December 31.
Permit Surchar e.
Assets
Cash and investments
Total assets
Liabilities
Due to other governmental units
Total liabilities
Tri-Ci GIS Fund
Assets
Cash and investments
Receivables:
Due from other governmental units
Total assets
Liabilities
Accounts payable
Due to other governmental units
Total liabilities
Total
Assets
Cash and investments
Receivables:
Due from other governmental units
Total assets
Liabilities
Accounts payable
Due to other governmental units
Total liabilities
$91,163 $ - $56,415 $34,748
$91,163 $0 $56,415 $34,748
$91,163 $ - $56,415 $34,748
$91,163 $0 $56,415 $34,748
$ - $11,173 $ - $11,173
19,081 - 19,081 -
$19,081 $11,173 $19,081 $11,173
$8,430 $ - $2,095 $6,335
10,651 - 5,813 4,838
$19,081 $0 $7,908 $11,173
$91,163 $11,173 $56,415 $45,921
19,081 - 19,081 -
$110,244 $11,173 $75,496 $45,921
~R_4~~ ~ - X2_(19.5 ~h_~3.5
$110,244 $0 $64,323 $45,921
184
III. STATISTICAL SECTION (UNAUDITED
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Years 2002 Through 2005
(Unaudited)
Fiscal General Public
Year Government Safety
2002 $1,915,920 $3,920,746
2003 1,756,434 3,630,535
2004 1,669,721 3,640,970
2005 1,681,229 4,052,905
Culture
Public and Community
Works Recreation Development
$1,659,152 $2,018,571 $1,679,107
2,646,859 1,909,831 1,239,030
2,041,254 1,904,848 2,239,213
2,380,673 2,017,816 4,860,222
186
Table 1
Interest on
Long-term
Debt Water Sewer Refuse
$575,712 $1,561,071 $1,058,721 $1,271,961
414,297 1,903,331 1,231,594 1,330,272
387,544 1,637,316 1,219,200 1,321,730
288,532 1,717,445 1,333,420 1,147,313
Storm
Sewer Liquor Total
$162,499 $6,343,775 $22,167,235
204,895 6,619,942 22,887,020
158,374 6,593,578 22,813,748
162,915 6,544,175 26,186,645
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GOVERNMENT-WIDE REVENUES
Years 2002 Through 2005
(Unaudited)
Program Revenues
Charges Operating Capital
Fiscal For Grants and Grants and
Year Services Contributions Contributions
2002 $12,706,748 $1,272,637 $4,640,568
2003 13,162,591 1,054,021 895,109
2004 13,598,752 872,493 2,733,286
2005 15,012,181 1,003,069 2,348,512
Note: Government-wide revenues are not available for years prior to 2002.
188
Table 2
General Revenues
Property Tax
Taxes Increments
$4,341,972
4,306,036
$798,446
781,439
4,989,205
5,662,368
972,208
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
2,337,386 729,456 -
Total
$28,619,313
23,550,007
26,232,786
1,088,267 1,768,216 589,555 (492,293) 26,979,875
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (A, B)
Years 1996 Through 2005
(Unaudited)
Table 3
Fiscal General Public
Year Government Safety
1996 $1,354,292 $2,597,866
1997 1,397,129 2,542,310
1998 1,449,476 2,675,544
1999 1,548,597 2,838,483
2000 1,530,423 2,950,642
2001 1,485,904 3,140,180
2002 1,868,475 3,829,178
2003 1,679,349 3,613,737
2004 1,576,233 3,500,668
2005 1,586,885 3,905,132
Culture Community
Public and Development Debt
Works Recreation (C) Service Total
$1,090,257 $1,464,130 $1,608,033 $1,475,888 $9,590,466
1,159,933 1,629,154 1,752,565 1,477,132 9,958,223
1,034,362 1,694,361 2,975,143 1,414,259 11,243,145
1,128,793 1,703,320 2,506,097 1,270,994 10,996,284
1,037,534 1,811,671 2,846,566 1,233,723 11,410,559
1,013,303 1,856,672 2,756,581 1,181,193 11,433,833
1,074,477 1,897,690 1,735,807 1,277,737 11,683,364
1,113,531 1,865,796 1,151,779 1,080,510 10,504,702
1,249,704 1,928,173 1,069,379 1,208,182 10,532,339
1,337,652 1,981,226 1,963,296 1,702,433 12,476,624
Notes:
(A) Includes general, special revenue, and debt service fund types.
(B) Beginning in 2002, the Municipal State Aid Construction, the Downtown Parking Ramp, and the
Four Cities Housing Mortgage Funds were reclassified from the special revenue to the capital
project fund type. Beginning in 2005, the Sheffield TIF Redevelopment Fund was reclassified from
the capital prof ect to the special revenue fund type.
(C) This column includes the Housing and Redevelopment Authority and the Economic Development
Authority. In the basic fmancial statements, these entities are included under the Community
Development function as blended component units of the City.
190
CITY OF COLUMBIA HEIGHTS, MINNESOTA
GENERAL GOVERNMENTAL REVENUES BY SOURCE (A,B,C)
Years 1996 through 2005
(Unaudited)
Table 4
Fiscal Licenses Inter- Charges for Fines and Investment Misc-
Year Taxes and Permits governmental Services Forfeitures Income ellaneous Total
1996 $3,840,481 $223,758 $4,139,604 $879,601 $125,543 $361,401 $167,606 $9,737,994
1997 4,489,572 202,533 4,302,631 923,485 127,074 443,034 127,862 10,616,191
1998 4,449,833 289,411 5,286,058 1,167,676 121,858 454,776 287,937 12,057,549
1999 4,413,680 401,158 5,282,867 1,029,899 100,161 135,144 242,852 11,605,761
2000 4,809,958 268,014 5,204,427 1,106,613 90,218 754,535 193,270 12,427,035
2001 4,878,197 292,744 6,215,883 1,191,165 87,760 622,688 177,754 13,466,191
2002 4,971,607 277,924 4,762,439 1,166,876 84,346 636,329 147,341 12,046,862
2003 4,882,672 281,480 3,569,993 1,125,431 140,378 122,667 175,307 10,297,928
2004 5,689,299 506,319 3,612,175 1,137,429 140,282 247,870 91,973 11,425,347
2005 6,435,617 344,372 2,907,898 1,279,089 127,555 204,567 66,609 11,365,707
Notes:
(A) Includes general, special revenue, and debt service fund types.
(B) Beginning in 2002, the Municipal State Aid Construction, the Downtown Parking Ramp, and the
Four Cities Housing Mortgage Funds were reclassified from the special revenue to the capital project fund type.
Beginning in 2005, the Sheffield TIF Redevelopment Fund was reclassified from the capital project to
the special revenue fund type.
(C) This schedule includes the Housing and Redevelopment Authority and the Economic Development Authority.
In the basic financial statements, these entities are included under the Community Development function
as blended component units of the City.
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TAX LEVIES AND TAX COLLECTIONS
Years 1996 Through 2005
(Unaudited)
Table 5
Adjusted
By Market
Value
Year Total Homestead
Collected Tax Levy " ~'-
1996 $2,754,161 $
1997 3,038,144
1998 3,201,434
1999 3,238,625
2000 3,295,956
2001 3,625,552
2002 4,824,130
2003 4,817,984
2004 5,447,260
2005 6,102,537
570,152
607,323
587,319
572,742
Collections Percentage
of Current of Levy
Years Taxes Collected
During During
Net Fiscal Fiscal
Tax Levy Period Period
$2,754,161 $2,726,715
3,038,144 3,001,061
3,201,434 3,163,132
3,238,625 3,182,088
3,295,956 3,267,728
3,625,552 3,584,080
4,253,978 4,194,432
4,210,661 4,135,156
4,859,941 4,760,788
5,529,795 5,430,037
99.0%
98.8%
98.8%
98.3%
99.1
98.9%
98.6%
98.2%
98.0%
98.2%
Ratio of
Accum.
Collections Ratio Delinquent
of Prior of Total Taxes to
Years Taxes Collections Accum. Current
During Fiscal Total to Tax Delinquent Year
Period Collections Levy Taxes Tax Levy
$78,666 $2,805,381 1.0186:1 $33,408 0.01213:1
23,818 3,024,879 0.9956:1 48,239 0.01588:1
26,314 3,189,446 0.9963:1 77,078 0.02408:1
35,374 3,217,463 0.9935:1 103,465 0.03195:1
73,658 3,341,386 1.0138:1 67,692 0.02054:1
28,580 3,612,660 0.9964:1 77,177 0.02129:1
34,504 4,228,936 0.9941:1 74,841 0.01759:1
44,380 4,179,536 0.9926:1 82,519 0.01960:1
57,527 4,818,315 0.9914:1 105,861 0.02178:1
45,645 5,475,682 0.9902:1 147,800 0.02673:1
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 total tax levy includes the market value homestead credit.
192
CITY OF COLUMBIA HEIGHTS, MINNESOTA
ASSESSED VALUE, TAX CAPACITY, AND
ESTIMATED ACTUAL VALUE OF ALL TAXABLE PROPERTY (A,B)
Years 1996 Through 2005
(Unaudited)
Table 6
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
1996 $8,884,233 $546,047,800 $220,961 $4,803,500 ($552,40 $2,603,671 $11,156,459 $550,851,300 2.03%
1997 9,185,608 564,682,300 224,356 4,912,100 (449,141) 2,873,097 11,833,920 569,594,400 2.08%
1998 8,840,736 586,529,700 193,445 4,891,100 (512,532) 2,540,064 11,061,713 591,420,800 1.87%
1999 8,557,027 608,453,400 168,578 4,871,900 (505,598) 2,527,183 10,747,190 613,325,300 1.75%
2000 9,219,621 657,162,700 161,709 4,839,300 (503,719) 2,777,292 11,654,903 662,002,000 1.76%
2001 10,304,905 744,888,200 157,970 4,733,500 (573,922) 3,085,984 12,974,937 749,621,700 1.73%
2002 8,756,307 839,022,200 91,466 4,647,500 (385,323) 1,976,846 10,439,296 843,669,700 1.24%
2003 8,665,656 977,677,300 95,322 4,840,300 (409,330) 2,111,495 10,463,143 982,517,600 1.06%
2004 9,511,823 1,072,678,600 99,232 5,035,800 (379,508) 2,267,401 11,498,948 1,077,714,400 1.07%
2005 10,787,641 1,197,740,600 104,386 5,292,200 (417,605) 2,275,591 12,750,013 1,203,032,800 1.06%
(A) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in
commercial-industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area-wid
tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. Thi
index is employed in determining what proportion of the valuation shall be distributed back to each assessment distric~
(B) Assessed/tax capacity values in this table are reported net of tax increment captured value
Source: Anoka County: Taxes & Taxable Property in the City of Columbia Height.
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
TAX RATES -PER $1 OF TAX CAPACITY
Years 1996 Through 2005
(Unaudited)
Table 7
Metropolitan
Year City School County Council Other (A) Total
1996 0.26460 0.77730 0.29946 0.05280 0.01488 1.40904
1997 0.29018 0.84748 0.28000 0.04605 0.01381 1.47752
1998 0.30991 0.68491 0.27845 0.05183 0.02287 1.34797
1999 0.31925 0.68837 0.29426 0.05685 0.02442 1.38315
2000 0.30147 0.66465 0.28125 0.05326 0.03212 1.33275
2001 0.30564 0.47452 0.26432 0.05354 0.03073 1.12875
2002 0.49114 0.38614 0.34761 0.0287 0.04158 1.29517
2003 0.45272 0.20303 0.34617 0.03158 0.04192 1.07542
2004 0.47888 0.22833 0.32722 0.02866 0.04196 1.10505
2005 0.47859 0.20017 0.30765 0.01016 0.04958 1.04615
(A) For years 1995-1997: Rice Creek Watershed, Mosquito Control, and Housing and Redevelopment
Authority.
For years 1998-2005 Rice Creek Watershed, Mosquito Control, Housing and Redevelopment Authority,
and County Regional Rail Authority
Source: Anoka County: Taxes & Taxable Property in Anoka County
194
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY TAX LEVY
Years 1996 Through 2005
(Unaudited)
Table 8
Fiscal City Levy General
Year Total Fund Library EDA Special PERA
1996 $2,754,161 $2,340,393 $413,768 $ - $ -
1997 3,03 8,144 2,517,101 422,043 99,000 -
1998 3,201,434 2,659,289 443,145 99,000 -
1999 3,238,625 2,660,059 467,518 111,048 -
2000 3,295,956 2,676,416 500,244 119,296 -
2001 3,625,552 2,958,490 547,767 119,295 -
2002 4,824,130 4,083,494 591,588 137,015 12,033
2003 4,817,984 4,243,830 433,585 140,569 -
2004 5,447,260 4,928,710 433,585 84,965 -
2005 6,102,537 5,578,737 438,835 84,965 -
Source: Certification of Truth in Taxation document filed with Anoka County by the City of
Columbia Heights, and re lated City Council resolutions.
195
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL TAXPAYERS
December 31, 2005
(Unaudited)
Table 9
of
Total City
Tax Capacity Tax Capacity
Rank Taxpayer Property Class Value Value
1 Medtronic, Inc. Manufacturing $179,498 1.49%
2 Bradley Operating LP Commercial 133,638 1.11%
3 New Heights Development Commercial 101,000 0.84%
4 Consolidated Reality of Minneapolis Apartments 100,573 0.84%
5 Venture Bank Commercial 89,900 0.75%
6 Columbia Park Properties Medical Building 87,292 0.72%
7 Lynde Investment Co MN Partnership Apartments 69,067 0.57%
8 Columbia Heights Center LLC Mall 67,250 0.56%
9 Crestview Corporation ApartmentslExempt 66,795 0.55%
10 Xcel Energy Utility 55,712 0.46%
Total of principal taxpayers $950,725 7.89%
Total of all property within City $12,044,670
Source: Anoka County: Taxable Property in the City of Columbia Heights
196
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL ASSESSMENT LEVIES AND COLLECTIONS (A)
Years 1996 Through 2005
Table 10
Current
Fiscal Assessments
Year Due
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Special
Assessments Deferred Special Assessments
Current Collections Delinquent Collected (A) Balance
of Delinquent at End of During at End of
Amount Levy Collections Fiscal Period Fiscal Period Fiscal Period
$38,470 59.4% $58,495 $34,147 $70,506 $158,269
32,286 42.3% 21,532 54,706 259,263 558,078
96,100 67.8% 36,320 63,342 413,629 626,176
86,221 63.3% 58,414 83,475 279,890 604,210
100,790 65.3% 73,583 84,483 293,080 636,992
114,766 68.9% 76,680 80,906 453,679 737,537
120,665 60.4% 65,149 110,567 421,259 1,073,860
186,337 93.9% 91,725 28,642 278,606 1,195,738
200,724 92.8% 24,047 20,265 446,100 1,577,767
291,274 96.1% 11,878 20,206 218,493 1,190,531
$64,767
76,405
141,739
136,207
154,355
166,451
199,905
198,497
216,411
303,061
(A) The City offers the property owner the option to prepay deferred special assessments directly to the City
until they become due. Installments that become due (are not prepaid), are certified to the County for
inclusion on the following year's property tax statement.
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPUTATION OF LEGAL DEBT MARGIN
December 31, 2005
(Unaudited)
Table 11
Taxable Market Value $1,091,591,800
Debt Limit Percentage (Note A) 2%
Statutory Debt limit 21,831,836
Amount of Debt applicable to debt limit:
Total bonded debt 5,810,000
Less (Note B): Tax increment bonds 1,985,000
Special assessment bonds 1,604,292
Revenue bonds 2,220,708
Total amount of debt applicable to debt limit 0
Legal debt margin $21,831,836
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 market value of taxable property in the municipality."
Note B:
M.S.A. Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after
deducting from its gross debt the amount of current revenues which are applicable within the current
fiscal year to the payment of any debt and the aggregate of the principal of the following:
1. Obligations issued for improvements which are payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited thereby, including those which are
general obligations of the municipality issuing them, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of the special assessments.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a Permanent Improvement Revolving Fund.
5. Obligations issued for the acquisition and betterment of public water works systems and public
lighting, heating or power systems, and of any combination thereof or for any other public
convenience from which a revenue is or may be derived.
6. Not applicable.
7. Amount of all money and face value of all securities held as a Debt Service Fund for the
extinguishment of obligations other than those deductible under this subdivision.
8. All other obligations which under the provisions of law authorizing their issuance are not to be
included in computing the net debt of the municipality.
198
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT Table 12
TO ASSESSED VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
Years 1996 Through 2005
(Unaudited)
Ratio of Net
Assessed Gross Bonded Debt to Net Bonded
Fiscal Value Bonded Less Debt Net Bonded Assessed Debt Per
Year Population (Note A) Debt Service Fund Debt Value Capita
1996 18,910 $11,156,459 $7,469,721 $843,287 $6,626,434 59.40% 350
1997 18,910 11,833,920 6,314,721 822,740 5,491,981 46.41% 290
1998 18,910 11,061,713 5,324,721 644,112 4,680,609 42.31% 248
1999 18,910 10,747,190 7,174,721 809,379 6,365,342 59.23% 337
2000 18,520 11,654,903 6,274,721 1,546,331 4,728,390 40.57% 255
2001 18,520 12,974,937 5,254,721 1,710,716 3,544,005 27.31% 191
2002 18,520 10,439,296 4,363,206 1,187,646 3,175,560 30.42% 171
2003 18,520 10,463,143 6,305,288 841,666 5,463,622 52.22% 295
2004 18,520 11,498,948 7,524,704 3,728,644 3,796,060 33.01% 205
2005 18,520 12,750,013 5,810,000 621,250 5,188,750 40.70% 280
(A) Assessed/tax capacity values from Table 6.
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT
TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES
Years 1996 Through 2005
(Unaudited)
Table 13
Total
Fiscal Bond Bond Bonded Debt
Year Principal Interest Service
1996 $1,155,000 $304,268 $1,459,268
1997 1,155,000 246,128 1,401,128
1998 990,000 190,390 1,180,390
1999 945,000 13 8,167 1,083,167
2000 900,000 224,530 1,124,530
2001 1,020,000 144,550 1,164,550
2002 891,515 599,415 1,490,930
2003 657,918 631,552 1,289,470
2004 765,584 736,584 1,502,168
2005 1,714,704 2,538,555 4,253,259
Ratio of
Total Debt Service to
General General
Governmental Governmental
Expenditures Expenditures
$9,590,466 15.2%
9,958,223 14.1%
11,243,145 10.5%
10,996,284 9.9%
11,410,559 9.9%
11,433,833 10.2%
11,683,364 12.8%
10,504,702 12.3%
10,532,339 14.3%
12,476,624 34.1%
200
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
December 31, 2005
(Unaudited)
Table 14
Net
General
Obligation Debt
Direct debt:
City of Columbia Heights
$5,810,000
108,255,000
1,049,362,184
55,935,000
13,560,000
1,227,112,184
$1,232,922,184
Percentage
Applicable to
City of
Columbia Heights
100.0000%
Amount
Applicable to
City of
Columbia Heights
$5,810,000
Overlapping debt:
Anoka County
Metropolitan Council
LS.D.13 (Columbia Heights)
NE Metro Intermediate Dist. No. 916
Total overlapping debt
Totals
Source: Anoka County Auditor Certificate
201
4.7364%
0.4673%
69.6294%
2.4253%
5,127,403
4,903,900
38,947,204
328,865
49,307,372
$55,117,372
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REVENUE BOND COVERAGE: WATER, SEWER AND STORM SEWER FUNDS
1999 - 2005
(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 63,105 243,105 0.98
2004 3,320,581 2,543,732 776,849 250,795 99,256 350,051 2.22
2005 3,389,775 2,689,633 700,142 265,669 84,930 350,599 2.00
Notes:
The revenue bonds were issued in 1999, thus statistical information is shown from that year on.
1. Total revenues including investment income.
2. Total expenses excluding depreciation and interest expense
3. Includes principal and interest of revenue bonds presented on a cash basis.
202
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PROPERTY VALUE AND CONSTRUCTION (A, B, C)
Years 1996 Through 2005
(Unaudited)
Table 16
Property Value (A) Construction (B)
Fiscal No. of Building
Year Real Personal Total Permits Issued Value
1996 $546,047,800 $4,803,500 $550,851,300 602 $11,910,040
1997 564,682,300 4,912,100 569,594,400 678 5,904,308
1998 586,529,700 4,891,100 591,420,800 869 16,991,747
1999 608,453,400 4,871,900 613,325,300 1,254 24,018,811
2000 657,162,700 4,839,300 662,002,000 794 6,767,183
2001 744,888,200 4,733,500 749,621,700 671 12,547,885
2002 839,022,200 4,647,500 843,669,700 625 8,283,941
2003 977,677,300 4,840,300 982,517,600 577 11,056,530
2004 1,072,678,600 5,035,800 1,077,714,400 493 (C) 49,576,455
2005 1,197,740,600 5,292,200 1,203,032,800 601 12,155,024
(A) Estimated actual values from Table 6.
(B) Source: City LicenselPermit Clerk
(C) 2004 Construction value includes $30,573,000 for a new water filtration plant that lies
within the City of Columbia Heights, but is owned and operated by the City of Minneapolis.
203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MISCELLANEOUS STATISTICS
December 31, 2005
(Unaudited)
Table 17
Page 1 of 2
Date of Incorporation March 14,1898
Date of Adoption of City Charter July 21,1921
Form of Government Council-Manager
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
Fire Protection:
Number of Stations 1
Number of Employees:
Full-time 9
Part-time 1
Paid on-call 25
Police Protection:
Number of Stations 1
Number of Employees, Full-time 30
City Employees, including Police and Fire
Full-time 107
Part-time 59
Paid on-call 25
Total 191
204
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MISCELLANEOUS STATISTICS
December 31, 2005
(Unaudited)
Table 17
Page 2 of 2
Parks:
City Parks 13
Playgrounds 11
County Park 1
Schools:
Senior High 1
Junior High 1
Elementary 3
Parochial Elementary 1
Elections (source: City Clerk):
11/02/04 City General Election (most recent election):
Registered voters 12,510
Number of Votes Cast 10,039
Percentage of Registered Voters Voting 80.25%
11/OS/02 City General Election
Registered voters 10,261
Number of Votes Cast 8,405
Percentage of Registered Voters Voting 81.91
Population:
1900 123
1920 2,968
1930 5,613
1940 6,053
1950 8,175
1960 17,533
1970 23,997
1975 (Mid-Decade Census) 23,316
1980 20,029
1985 19,540
1990 (Census) 18,910
2000 (Census) 18,520
205
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC STATISTICS
December 31, 2005
(Unaudited)
Table 18
POPULATION, HOUSEHOLDS, AND HOUSEHOLD SIZE PROJECTIONS*
Households 8,039
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 - 9 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
Service occupations
Sales and office occupations
Farming, fishing and forestry occupations
Construction, maintenance, transportation and manufacturing occupations
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 General Demographic Characteristics: 2000
~ ~ ~ Source: US Census Bureau, Profile of Occupation, Industry and Class of Worker: 2000
~ ~ ~ ~ Source: US Census Bureau, Income and Poverty Status in 1999: 2000
28.00
16.10
31.30
0.20
24.40
206
IV. SINGLE AUDIT AND OTHER
REQUIRED REPORTS SECTION
207
208
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON COMPLIANCE WITH MINNESOTA LEGAL COMPLIANCE
AUDIT GUIDE FOR LOCAL GOVERNMENT
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, 2005, and have issued our report thereon dated
March 17, 2006.
~L1'e conducted our audit in accordance with auditing standards generally accepted in the
United States of America, and the provisions of the Minnesota Legal Compliance ~4udit
Guide for Local Government promulgated by the State Auditor pursuant to Minnesota
Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records
and such other auditing procedures as we considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Cruide~ for Local Government covers seven
categories of compliance to be tested: contracting and bidding, deposits and investments,
conflicts of interest, public indebtedness, claims and disbursements, miscellaneous
provisions and tax increment financing. Our study included all of the 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.
HLB TAUTGES REDPAT ,LTD.
White Bear Lake, Minnesota
March 1 ~, 2006
4810 White Bear Parkway White Bear fake, Minnesota 55110 651 426 7D00 651 426 5004 Fax www.hlbtr.com
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 480 4990 651 426 5004 Fax
HLB Tautges Redpath, Ltd. is a member of ~ International, a world-wide organization of accaunling firms and business advisors.
209
Ito
FINDING 2005-1
Criteria: Minnesota Statutes require that municipalities have a declaration for payment
signed to the effect that such amount, claim, or demand is just and correct and that no part of
it has been paid. Minnesota Statute 471.391 reads as follows:
471.391 Declaration form.
Subdivision 1. Sufficiency. The declaration provided for in section 471.38 is sufficient if in the
following form: "I declare under the penalties of law that this account, claim or demand is just and correct
and that no part of it has been paid.
Signature of Claimant"
Subdivision 2. Above check endorsement. The check or order-check by which the claim is paid may
have printed on its reverse side, above the space for endorsement thereof by the payee, the following
statement: "The undersigned payee, in endorsing this check (or order-check) declares that the same is
received in payment of a just and correct claim against the county (county board of education for
unorganized territory, school district, town or city), and that no part of it has heretofore been paid." When
endorsed by the payee named in the check or order-check, such statement shall operate and shall be
deemed sufficient as the required declaration of the claim.
Condition: The check stock used by the HRA does not include the required declaration.
Cause: The cause of the compliance issue is unknoM.
Effect: The HRA is not in compliance with this issue and is not meeting the requirements of
Minnesota Statute 471.391.
Recommendation: we recommend the HRA add the required declarations to its check stock.
City 1Vlanagement Response: As of June 1, 2006, this has been corrected.
211
212
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GaVERN~VIE.NTA UD.~~'ING S~A.~DARDS
To the Honorable Mayor and
Members of the City Council
Columbia Heights, Minnesota
We have audited the f nancial 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, 2005, which
collectively comprise the City of Columbia Heights, Minnesota's basic financial statements
and have issued our report thereon dated March x 7, 2006. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control aver 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 opinions on the #inancial statements and not to
provide an opinion on the internal control over financial reporting. However, we noted
certain matters involving the internal control over financial reporting and its operation that
we consider to be reportable conditions. Reportable conditions involve matters coming to
our attention relating to significant deficiencies in the design or operation of the internal
control over financial reporting that, in our judgment, could adversely affect the City of
Columbia Heights, Minnesota's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements. Reportable
conditions are described in the accompanying schedule of findings and questioned costs as
item 2005 ~ I .
A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that
misstatements caused by error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. Our consideration of
the internal control over financial reporting would not necessarily disclose all matters in the
internal control that might be reportable conditions and, accordingly, would not necessarily
disclose all reportable conditions that are also considered to be material weaknesses.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hlbtr.com
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 480 4990 651 426 5004 Fax
HLB Tau~ges Retlpath, Lid. es a member of ~ In~erna~ional, a world-wide organisation o1 accounting firms and business atlvisflrs.
2I3
Z14
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 17, 2006.
Compliance and ether Matters
As part of obtaining reasonable assurance about whether the City of Columbia Heights,
Minnesota's financial statements are free of material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
~Ve also noted certain additional matters that we reported to management in a separate letter
dated May 25, 2006.
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.
f~~ ~~u~ ~~~~. ~~
HLB TAUTGES REDPATH, LTD.
white Bear Lake, Minnesota
March 17, 2006
215
zip
Tautges Redpath, Ltd.
Certified Public Accountants and Consuitants
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL"CONTROL OVER COMPLIANCE IN
ACCGRDANCE WITH CMB 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. Gffice of Management and Budget ~CMB}
Circular A-133 Compliance Supplement that are applicable to each of its major federal
programs for the year ended December 31, 2005. 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.
Gur 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 GMB Circular A-133, audits of States, Local Governments, and I1lon-
~'ro~t Organizations. Those standards and 4MB Circular A-133 require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the
types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City of Columbia Heights, Minnesota's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion. Dur
audit does not provide a legal determination on the City of Columbia Heights, Minnesota's
compliance with those requirements.
4810 White Bear Parkway White Bear Lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hlbtr,com
1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 651 480 4990 651 426 5004 Fax
HLB Tautges Redpath, Lttl. is a member of . International, a world-wide organization of accounting firms and besiness advisors.
2i7
2~s
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, 2005.
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 maj or 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
maj or 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
materia wea nesses.
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 17, 2006.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota as of and for the year ended December 31, 2005, and have
issued our report thereon dated March 17, 2006. Our audit was performed for the purpose of
forming opinions on the financial statements that collectively comprise the City of Columbia
Heights, Minnesota's basic financial statements taken as a whole. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by OMB Circular A-13 3 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.
219
220
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.
~~ T.r~t~ < <~
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
March 17, 2006
221
G~~
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2005
SECTION I -SUMMARY OF AUDIT RESULTS
1. The Independent Auditor's Report expresses an unqualified opinion on the basic
financial statements of the City of Columbia Heights, Minnesota.
2. There was one reportable condition disclosed during the audit of the financial
statements as reported in the Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government 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 maj or federal award programs are
reported in the 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 maj or federal award programs for the City of
Columbia Heights, Minnesota are reported in Section III of this Schedule.
7. Homeland Security Grant - CFDA #97.004 was tested as a maj or 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 2005.
223
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2005
SECTION II -FINANCIAL STATEMENT FINDINGS
2005-1: 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.
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 2006, the City needs to implement a system of independent
verification of class rosters.
SECTION III -FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No federal awards findings or questioned costs for 2005.
224
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2005
SECTION IV -PRIOR YEAR FINDINGS
2004-5: Community Development Block Grant
Criteria: The Community Development Block Grant requires that the local government
entity check for debarred/suspended contractors by use of the government website.
Condition: Per inquiry and analysis, this procedure has not been performed by the EDA.
Cause: Per the Director of Community Development, a check for a valid state license is
made, but EDA staff were unaware of the website. The threshold for this requirement was
recently reduced from $100,000 to $25,000.
Effect: They could possibly be working with adebarred/suspended contractor and could be
out of compliance with rules to those CDBG federal funds.
Current Status: A procedure to document a search of the federal debarred/suspended
contractors list was not added to the EDA's contracting process in 2005.
225
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2005
Federal Funding Source/ Federal 2005
Pass Through Agencyl CFDA Federal
Program Title Number Expenditures
U.S. Department of Housing and Urban Development:
Direct:
Operating Subsidy 14.850 121,270
Capital Funds Program (CFP) 14.872 104,237
Passed-through Anoka County:
Community Development Block Grant -Entitlement Grant (CDBG) 14.218 279,894
U.S. Department of Transportation
Passed-through State of MN Department of Public Safety:
ACE Nitecap 20.600 2,848
Passed-through Anoka County, Minnesota:
Safe and Sober 20.600 5,616
U.S. Department of Homeland Security -Federal Emergency Management Agency:
Passed-through Anoka County:
Emergency Management Assistance Grant 97.042 2,363
Passed-through State of MN Department of Public Safety:
Homeland Security 97.004 199,211
U.S. Department of Health and Human Services:
Passed-through State of MN Department of Health:
Armed and Alert Grant 93.136 L000
Total Federal Expenditures $716,439
226
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2005
Notes to the schedule of expenditures of federal awards
Note 1. Basis of Presentation
The above schedule of expenditures of federal awards includes the federal grant activity of the City of Columbia
Heights, Minnesota (including its component units) and is presented on the accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements 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. Subrecipients
During 2005, 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. l4, The Financial Reporting Entity . This schedule also includes the Housing and
Redevelopment Authority (HRA), and the Economic Development Authority (EDA) which are the sole component units of the City.
Note 4. Schedule of Statement and Certification of Actual Modernization Costs:
FY 2003 FY 2004 FY 2005
MN 46P10550103 MN 46P10550104 MN 46P10550105
Annual Contributions Amendment # 17 Amendment # 17 Amendment # 17
1. The actual modernization costs are as follows:
Funds approved 5102,313 $118,489 5114,226
Fund expended 102,313 37,784 -
Excess of funds advanced (expended) $0 580,705 5114,226
Funds advanced -HUD Grants 564,529 S - $ -
Fundsexpended:
In prior years 64,529 - -
In current year 37,784 66,453 -
Excess of funds advanced (expended) (537,784) (566,453) $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 modernization costs have been paid and all related liabilities have been discharged through payment.
227
228
Tautges Redpath, Ltd.
Certified Public Accountants and Consultants
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 far the year ended December 3I, 2005, and have issued our report thereon dated
March 17, 2006. Our audit was performed for the purpose of forming an opinion on the
basic f nancial 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 f nancial 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.
HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
March 17, 2006
4$101~lhite Bear Parkway 1111hite Bear Lake, Minnesota 55110 651 426 7000 651 426 5004 Fax www.hlbtr.cam
1303 South Frontage Raad Suite 13 Hastings, Minnesota 55033 651 4$0 4990 651 426 5004 Fax
HLB Tautges Redpath, ltd. is a member of ; International, a world-wide organization of accounting firms and business advisors.
22"
23~
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, 2005
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
345 Other current liabilities
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
14.850 14.872
$514,720 $ -
514,720 0
- 104,237
217 -
2,665 -
3,016 -
5,898 104,237
104,237 -
624,855 104,237
177,375 -
2,565,934 -
278,540 -
5,144 -
3,026,993 0
(1,825,819) -
1,201,174 0
1,201,174 0
1,826,029 104,237
$63,003 -
17,628 -
12,875 -
17,236 -
- 104,237
110,742 104,237
0 0
110,742 104,237
1,201,174 -
514,113 -
$1,715,287 $0
231
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, 2005
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
LO10 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
$293,062 $ -
11,221 -
121,270 104,237
22,288 -
1,693 -
114,674 -
51,513 -
508 -
9,734 -
41,028 -
61,621 -
11,554 -
86,841
22,966 -
3,754
17,628 -
102,607 -
548,409
0
0
104,237 -
- (104,237)
104,237 (104,237)
(10,124) 0
1,730,555 -
(5,144) -
N/A N/A
NIA N/A
NIA N/A
1,200 N/A
1,199 N/A
Note 1: Prior Period Adjustment to U.S. Department of Housing and Urban Development Financial Data Schedule:
Furniture ,equipment and machinery -dwellings (5,144) -
FinancialData Schedule line 1104, Prior period adjustment -correction of an error (5,144) -
232