HomeMy WebLinkAbout2008 EDA AMLTautges Redpath, Ltd.
Certified Poblic Accountants and Consultants
To the Board of Commissioners
Columbia Heights Economic Development Authority
Columbia Heights, Minnesota 55421
In conjunction with our audit of the City's flnancial statements, we have prepared this
report to assist the EDA board in analyzing the financial activity of the EDA.
Econ~; ,D`opment Authority
The EDA was established in January 1 X96. The EDA is a separate legal entity from the
City, however, because the Mayor and City Councilmembers comprise the majority of the
EDA's governing board, the EDA is reported in the City's financial statements using the
blended method. Additionally, the EDA assumed oversight responsibility for the HRA. The
EDA and HRA financial statements are included as Special Revenue Funds of the City's
CAFR.
Condensed balance sheets for the HRA and EDA for 2008 and 2007 are as follows:
EDA FUNDS HRA FUNDS
Housing Business Parkview Parkview
Maint. Revolving EDA villa Villa Rental 2008 2007
Fund Loan Admin. North South Housing Total Total
Assets:
Cash and investments $231,502 $ - $93,609 $8$1,435 $439,598 $ - $1,646,144 $1,291,874
Other assets - - 537,713 $4,400 34,761 - 656,$74 1,296,859
Total assets $231,502 $0 $431,322 $965,835 $474,359 $0 $2,303,018 $2,588,733
Liabilities and Fund Balance:
Liabilities - in total $ - $ - $455,214 $217,697 $63,264 $ - $736,175 $1,525,230
Fund balance 231,502 - 176,108 748,138 411,095 - 1,566,843 1,063,503
Total liabilities and fund balance $231,502 $0 $b31,322 $965,835 $474,359 $0 $2,303,018 $2,588,733
4810 White Bear Parkway White Bear Lake, Minnesota 55~ ~ 0 1651 426 7000
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Business Loan Revolvin Fund 299
A comparison of the financial activity of this fund for 2006 through 2008 is as follows:
Revenue and other sources:
Feeslprogram revenue
investment income
Total revenue and other sources
Expenditures and other uses:
Transfers out
Revenues over (under) expenditures
Fund balance -January 1
Fund balance -December 3l
2aa6 2007 2oas
$526 $ - $ -
12,980 70,583 2,590
13,506 70,583 2,594
- - 467,447
13,506 7x,583 (464,857}
380,768 394,274 464,557
$394,274 $464,$57 $0
In January 2009, the City council adopted Resolution 2009-1 approving the transfer of
$161,02 i to the Economic Development Authority Administration Fund. Resolution 2009-1
also approved the transfer of the remaining fund balance, $306,426, to the Economic
Development Authority Housing Maintenance Fund.
Audit Management Letter
EDA Administration Z04
This fund was established in ~ 996 to account for the financial activity associated with
business development and community redevelopment prof ects in the City.
A summary of the financial activity of this fund for 2006 through 2008 is as follows:
Revenues:
Taxes
Market value homestead credit
Investment income
Total revenues
Expenditures:
Other:
Other services and charges
Capital outlay
Total expenditures
Revenues over expenditures
Other financing sources (uses}:
Transfers in:
Business Revolving Loan Fund (299}
Capital Improvement Fund (390}
Capital Improvement Develapment Fund (420}
Transfers out:
Community Development (201 }
Total other financing sources (uses}
Net change in fund balance
Fund balance (deficit} - January 1
Fund balance (deficit} -December 31
2oa6 2007 2aa5
$223,480 $275,740 $257,348
13,113 11,695 12,$92
961 - 2,008
237,554 287,435 272,248
- - 629
- - 36,076
0 0 36,705
237,554 287,435 235,543
- - 161,021
- - 15,038
- - 400,000
246,331 317,225 274,863
246,331 317,22$ 304,196
(5,777} (29,793} 539,739
325,ob1 333,838 (363,631
$333,838 $363,631 $17b,105
In accordance with accounting standards, the EDA reports land held far resale on its
balance sheet. This fund has an interfund loan payable to the Capital Improvement Fund
(420} in the amount of $400,000 to finance the land held for resale.
Audit Management Letter
Housing Maintenance Fund (408)
This fund was established in 205 to account for the quality and quantity of housing in
the City.
A summary of the financial activity is as follows;
Revenue and other sources:
Transfers in:
General Fund (101 } $13 8,000
Special Projects (226} 206,700
Rental Housing (235} 40,688
Business Revolving Loan (299} 306,426
Sheffield Redevelopment (410) 400,000
Total revenue and other sources 1,091,814
Expenditures and other uses:
Loans and grants 80,7$0
Professional services 15,373
Transfers out:
Sheffield Redevelopment (41 } 13 3,179
Public Safety Center Capital Bldg (417} 600,000
Capital Improvement Development (420) 30,9$0
Total expenditures and other uses 860,312
Net change in fund balance 231,502
Fund balance - January 1
Fund balance -December 31 $231,502
Audit Management Letter
Parkview Villa North (PVVN} („Z03}
The f~nanciai activity of this fund for 200 through 2~a8 is as follows:
2006 2007 2008
Revenues:
Federal grant:
Operating subsidy $157,937 $159,624 $185,506
Capital grant 105,802 185,287 70,980
Rents 301,897 314,558 316,990
Investment income 15,740 31,870 21,790
Other 4,249 8,932 10,919
Total revenues 585,625 700,271 606,185
Expenditures:
Personal services 22,533 22,463 23,038
Supplies 46,768 70,797 21,860
Other services and charges 377,428 367,988 389,980
Capital outlay 115,311 127,216 72,675
Total expenditures 562,040 588,464 507,553
Revenues over expenditures 23,585 111,$07 98,632
Fund balance -January 1 5X4,114 537,699 649,506
Fund balance -December 31 $537,699 $649,506 $748,138
Audit Management Letter
Parkview Villa South 213
The financial activity of this fund far 2006 through 2008 is as follows:
2006 2ao7 Zoos
Revenues:
Rents $266,128 $283,229 $296,120
Investment income 5,120 11,930 9,600
Other 3,343 4,523 S,Sb2
Total revenues 274,591 299,682 311,282
Expenditures:
Personal services 11,480 11,480 12,230
Supplies 11,198 24,08$ 10,772
Other services and charges 173,718 162,6b$ 178,013
Capital outlay - 25,700 -
Total expenditures 196,39b 219,93b 201,015
Revenues over expenditures 78,195 79,746 110,2b7
Fund balance -January 1 142,887 221,082 300,828
Fund balance -December 31 $221,082 $300,82$ $411,095
During 200 i, the EDA approved the establishment of the PWS Capital Improvement
Fund. This fund transferred $700,000 to the PW S Capital hmprovement Fund in 200 Z .
Audit Management Letter
Audit Management Letter
Rental Housln 235
This fund was established in 1996 to account for rental properties. A summary of the
2006 through 2008 financial activity is as follows:
Revenue and other sources:
Investment income
Other
Total revenue and other sources
Expenditures and other uses:
Transfers out
Net change in fund balance
Fund balance -January 1
Fund balance -December 31
Zoo6 Zoo? zoos
$1,410 $ - $ -
1,410 0 0
- - 40,688
1,410 0 X40,688}
39,278 40,688 40,685
$40,685 $4a,65s $o
This fund was closed in 2008 by a transfer to the Housing Maintenance Fund (408).
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HLB TAUTGES REDPATH, LTD.
White Bear Lake, Minnesota
June 17, 2049