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HomeMy WebLinkAbout2009 CAFR COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2009 Finance Department William J. Elrite, Finance Director - This page intentionally left blank - CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. I. INTRODUCTORY SECTION Principal City Officials 3 Organizational Chart 4 Letter of Transmittal 5 Certificate of Achievement for Excellence in Financial Reporting 9 II. FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 15 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net AssetsStatement 132 Statement of ActivitiesStatement 234 Fund Financial Statements: Balance Sheet - Governmental FundsStatement 336 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental FundsStatement 438 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 541 Statement of Net Assets - Proprietary FundsStatement 642 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary FundsStatement 744 Statement of Cash Flows - Proprietary FundsStatement 846 Statement of Fiduciary Net Assets - Fiduciary FundsStatement 950 Notes to Financial Statements 51 Required Supplementary Information: Budgetary Comparison Schedule - General FundStatement 1084 Schedule of Funding Progress for the Retiree Health PlanStatement 1186 Budgetary Comparison Schedule - Note to RSI87 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental FundsStatement 1292 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental FundsStatement 1393 Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 1497 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue FundsStatement 15101 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual - Cable Television FundStatement 16104 Actual - Police Forfeiture FundStatement 17105 Budget and Actual - Police Community Programs FundStatement 18106 Actual - Police Grants FundStatement 19107 Budget and Actual - Library FundStatement 20108 Actual - After School Programs FundStatement 21109 Actual - C.H.A.S.E. FundStatement 22110 Actual - Recreation Contributed Projects FundStatement 23111 Actual - Contributed Projects - Other FundStatement 24112 Actual - Flex Benefit FundStatement 25113 Actual - Special Projects FundStatement 26114 Budget and Actual - Community Development FundStatement 27115 Actual - Anoka County Comm Dev Programs FundStatement 28116 Economic Development Authority (Component Unit): Combining Balance SheetStatement 29117 Combining Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 30118 Budgetary Comparison Schedule - Administration FundStatement 31119 Business Revolving Loan Fund: Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 32120 Housing and Redevelopment Authority (Component Unit): Combining Balance SheetStatement 33121 Combining Statement of Revenues, Expenditures and Changes in Fund BalanceStatement 34122 Schedules of Revenues, Expenditures and Changes in Fund Balance: Budget and Actual - Parkview Villa North FundStatement 35123 Budget and Actual - Parkview Villa South FundStatement 36124 Actual - Rental Housing FundStatement 37125 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 38129 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 39133 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 40138 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 41140 Enterprise Funds: Water Utility Fund: Subcombining Schedule of Net Assets Statement 42144 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 43145 Subcombining Schedule of Cash Flows Statement 44146 Sewer Utility Fund: Subcombining Schedule of Net Assets Statement 45147 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 46148 Subcombining Schedule of Cash Flows Statement 47149 Refuse Utility Fund: Subcombining Schedule of Net Assets Statement 48150 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 49151 Subcombining Schedule of Cash Flows Statement 50152 Storm Sewer Utility Fund: Subcombining Schedule of Net Assets Statement 51153 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 52154 Subcombining Schedule of Cash Flows Statement 53155 Liquor Fund: Subcombining Schedule of Net Assets Statement 54157 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net Assets Statement 55158 Subcombining Schedule of Cash Flows Statement 56160 Internal Service Funds: Combining Statement of Net Assets Statement 57164 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Statement 58165 Combining Statement of Cash Flows Statement 59166 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Central Garage Fund: Subcombining Schedule of Net Assets Statement 60167 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net AssetsStatement 61168 Subcombining Schedule of Cash FlowsStatement 62169 Information Systems Fund: Subcombining Schedule of Net Assets Statement 63170 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net AssetsStatement 64171 Subcombining Schedule of Cash FlowsStatement 65172 Insurance Fund: Subcombining Schedule of Net Assets Statement 66173 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net AssetsStatement 67174 Subcombining Schedule of Cash FlowsStatement 68175 Compensated Absences Fund: Subcombining Schedule of Net Assets Statement 69176 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net AssetsStatement 70177 Subcombining Schedule of Cash FlowsStatement 71178 Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 72180 III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Assets by ComponentTable 1184 Changes in Net AssetsTable 2186 Fund Balances - Governmental FundsTable 3190 Changes in Fund Balances - Governmental FundsTable 4192 Revenue Capacity: Tax Capacity Value and Estimated Market Value of All Taxable PropertyTable 5196 Direct and Overlapping Property Tax RatesTable 6197 Principal Property TaxpayersTable 7199 Property Tax Levies and CollectionsTable 8200 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Debt Capacity: Ratios of Outstanding Debt by TypeTable 9202 Ratios of Outstanding Net General Bonded Debt by TypeTable 10204 Direct and Overlapping Governmental Activities DebtTable 11206 Legal Debt Margin InformationTable 12207 Pledged Revenue Coverage Non-obligation DebtTable 13208 Demographic and Economic: Demographic and Economic StatisticsTable 14209 Principal EmployersTable 15211 Operating Information: City Government Employees by Function/ProgramTable 16212 Operating Indicators by Function/ProgramTable 17214 Capital Asset Statistics by Function/ProgramTable 18216 IV. OTHER REQUIRED REPORTS SECTION Report on Compliance with Minnesota Legal Compliance Audit Guide for Local Government221 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 223 Schedule of Findings and Responses 225 Report on Supplementary Information - Financial Data Schedule 227 U.S. Department of Housing and Urban Development: Financial Data Schedule 229 Financial Data Schedule - Statement and Certification of Actual Modernization Costs 231 - This page intentionally left blank - I. INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2009 Name Official Title Mayor and Council: Gary L. Peterson Mayor Tammera Ericson Diehm Councilmember Bruce Kelzenberg Councilmember Bruce Nawrocki Councilmember Robert A. Williams Councilmember Administration: Walter Fehst City Manager Linda Magee Assistant to City Manager William Elrite City Clerk-Treasurer, Finance Director Jim Hoeft City Attorney Kevin Hansen Public Works Director, City Engineer Scott Nadeau Chief of Police Gary Gorman Chief of Fire M. Rebecca Loader Librarian Scott Clark Community Development Director Keith Windschitl Recreation Services Director Larry Scott Liquor Operations Manager Lauren McClanahan Superintendent of Public Works 3 4 9 - This page intentionally left blank - 10 II. FINANCIAL SECTION 11 - This page intentionally left blank - 12 BASIC FINANCIAL STATEMENTS 31 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS Statement 1 December 31, 2009 Page 1 of 2 With Comparative Totals For December 31, 2008 GovernmentalBusiness-Type ActivitiesActivities20092008 Current assets: Cash and investments$26,067,775$4,095,367$30,163,142$35,988,409 Cash and investments with fiscal agent - 408,632408,632408,561 Receivables: Accounts (net of allowance for uncollectibles)130,8241,231,6121,362,4361,379,453 Special assessments - current447,525 - 447,525645,342 Taxes 512,201 - 512,201442,575 Interest93,61715,200108,817259,962 Due from other governmental units - current547,410116,152663,562607,828 Internal balances(372,504)372,504 - - Prepayments130,784167,584298,368288,022 Inventory - at cost36,7962,137,0522,173,8481,827,998 Real estate held for resale1,693,169 - 1,693,1691,022,089 Total current assets29,287,5978,544,10337,831,70042,870,239 Noncurrent assets: Special assessments receivable - noncurrent3,041,344 - 3,041,3443,174,569 Loans receivable - noncurrent43,600 - 43,60043,600 Due from other governmental units - noncurrent - - - 56,051 Capital assets (net of accumulated depreciation): Land3,625,6912,343,2475,968,9385,735,806 Buildings7,635,2503,744,45411,379,7046,722,684 Equipment2,111,225805,8682,917,0933,016,393 Infrastructure14,946,4847,484,88922,431,37322,284,505 Construction in process13,059,211103,82013,163,0317,552,367 Total noncurrent assets44,462,80514,482,27858,945,08348,585,975 Total assets73,750,40223,026,38196,776,78391,456,214 Totals Primary Government Assets The accompanying notes are an integral part of these financial statements. 32 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS Statement 1 December 31, 2009 Page 2 of 2 With Comparative Totals For December 31, 2008 GovernmentalBusiness-Type ActivitiesActivities 2009 2008 Current liabilities: Accounts payable $597,855$603,428$1,201,283$1,121,706 Accrued salaries and withholdings payable 217,778 27,382 245,160 477,437 Contracts payable - retained percentage 193,540 68,940 262,480 273,607 Due to other governmental units 229,346 350,111 579,4571,060,182 Unearned revenue 230,796 - 230,796 214,921 Accrued interest payable 396,179 149,548 545,727 480,621 Deposits 39,640 1,000 40,640 94,652 Compensated absences payable - current 38,411 6,206 44,617 57,726 Bonds payable - current 765,736 552,2641,318,0001,159,000 Total current liabilities 2,709,2811,758,8794,468,1604,939,852 Noncurrent liabilities: Compensated absences payable - noncurrent 725,225 117,205 842,430 854,216 Other postemployment benefits payable - noncurrent 20,141 - 20,141 11,427 Bonds payable - noncurrent 21,249,7507,028,24828,277,99825,080,999 Total noncurrent liabilities 21,995,1167,145,45329,140,56925,946,642 Total liabilities 24,704,3978,904,33233,608,72930,886,494 Invested in capital assets - net of related debt 24,163,9117,459,47431,623,38530,640,200 Restricted for: Debt service 542,943 648,4351,191,3781,748,279 Tax increment purposes 1,915,800 - 1,915,8001,314,281 Unrestricted 22,423,3516,014,14028,437,49126,866,960 Total net assets $49,046,005$14,122,049$63,168,054$60,569,720 Liabilities Net assets Primary Government Totals The accompanying notes are an integral part of these financial statements. 33 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 Charges For Expenses Services Functions/Programs Primary government: Governmental activities: General government $1,761,334 $169,850 Public safety 4,591,977 637,653 Public works 2,794,189 34,149 Culture and recreation 2,182,856 256,969 Community development 2,385,405 1,019,191 Interest on long-term debt 961,392 - Total governmental activities 14,677,153 2,117,812 Business-type activities: Water 1,927,811 2,471,257 Sewer 1,737,134 1,465,496 Refuse 1,290,528 1,383,979 Storm sewer 376,884 370,590 Liquor 7,701,961 7,962,884 Total business-type activities 13,034,318 13,654,206 Total primary government $27,711,471 $15,772,018 The accompanying notes are an integral part of these financial statements. 34 Statement 2 Operating Capital Grants andGrants andGovernmentalBusiness-Type ContributionsContributionsActivities Activities 2009 2008 $1,505 $ - ($1,589,979)$ - ($1,589,979)($1,659,408) 434,402 19,520(3,500,402) - (3,500,402)(3,492,130) 161,401 1,683,024 (915,615) - (915,615)(1,089,327) 102,517 1,500(1,821,870) - (1,821,870)(1,738,866) 211,400 199,505 (955,309) - (955,309)245,825 - - (961,392) - (961,392)(721,006) 911,2251,903,549(9,744,567)0(9,744,567)(8,454,912) - - - 543,446 543,446 264,340 - - - (271,638)(271,638)(74,830) 50,105 - - 143,556 143,556 206,288 - - - (6,294)(6,294)97,876 - - - 260,923 260,923 20,619 50,105 0 0 669,993 669,993 514,293 $961,330$1,903,549(9,744,567)669,993(9,074,574)(7,940,619) General revenues: Property taxes 8,046,318 - 8,046,318 6,762,129 Tax increment collections 1,244,684 - 1,244,684 1,557,891 Grants and contributions not restricted to specific programs 1,731,185 - 1,731,185 1,516,412 Unrestricted investment earnings 475,345 92,672 568,017 1,266,865 Gain on sale of capital assets used in governmental activities 82,704 - 82,704 40,877 Transfers 383,990 (383,990) - - Total general revenues and transfers11,964,226 (291,318)11,672,90811,144,174 Change in net assets 2,219,659 378,675 2,598,334 3,203,555 Net assets - January 1 46,826,34613,743,37460,569,72057,366,165 Net assets - December 31 $49,046,005$14,122,049$63,168,054$60,569,720 Totals Net (Expense) Revenue and Changes in Net AssetsProgram Revenues Primary Government The accompanying notes are an integral part of these financial statements. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2009 General Fund 2008A Taxable GO Housing Improvement Area Bonds Fund Public Safety Center Capital Building Fund Community Center Capital Building Fund Assets Cash and investments$5,033,008$224,466$904,760$745,924 Receivables: Accounts34,741 - - - Special assessments - 963,087 - - Taxes463,405 - - - Interest17,61760015,7005,200 Loans - - - - Due from other governmental units87,019 - - - Interfund receivable50,070 - - - Prepayments71,898 - - - Real estate held for resale - - - - Total assets$5,757,758$1,188,153$920,460$751,124 Liabilities and Fund Balances Liabilities: Accounts payable$126,696$ - $300,343$1,406 Accrued salaries and withholdings payable195,419 - 20 - Contracts payable - retained percentage - - 142,825 - Due to other governmental units122,526 - - - Interfund payable - - - - Deferred revenue516,966963,087 - - Deposits - - - - Total liabilities961,607963,087443,1881,406 Fund balances: Reserved for: Prepayments71,898 - - - Real estate held for resale - - - - Unreserved: Designated, reported in: General fund4,553,470 - - - Special revenue funds - - - - Debt service funds - 225,066 - - Capital projects funds - - 477,272749,718 Undesignated, reported in: General fund170,783 - - - Special revenue funds - - - - Debt service funds - - - - Total fund balances4,796,151225,066477,272749,718 Total liabilities and fund balances$5,757,758$1,188,153$920,460$751,124 Fund balance reported above 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. Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds. Internal service funds are used by management to charge the costs of garage, information systems, insurance and compensated absences to individual funds. With the exception of the information systems fund which is a business-type fund, the assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets. Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Net assets of governmental activities The accompanying notes are an integral part of these financial statements. 36 Statement 3 Municipal State Aid Street Fund Capital Improvements General Gov't Buildings Capital Equipment Replacement General Gov't Capital Improvements PIR Fund Other Governmental Funds Interfund Eliminations Total Governmental Funds 2009 $18,161$1,514,892$4,789,515$1,717,667$9,185,240$ - $24,133,633 - - - - 96,083 - 130,824 - - - 2,525,782 - - 3,488,869 - - - - 48,796 - 512,201 - 7,60014,6005,00023,500 - 89,817 - - - - 43,600 - 43,600 401,776 - - 5,97152,644 - 547,410 - - - 24,055462,657(536,782) - - - - - 3,046 - 74,944 - - - 56,1001,637,069 - 1,693,169 $419,937$1,522,492$4,804,115$4,334,575$11,552,635($536,782)$30,714,467 $1,854$ - $ - $5,112$123,828$ - $559,239 1,848 - - 55313,778 - 211,618 - - - 46,2914,424 - 193,540 - - - 3,355103,465 - 229,346 - - - - 723,430(536,782)186,648 - - - 2,511,513179,534 - 4,171,100 - - - 12,83126,809 - 39,640 3,702002,579,6551,175,268(536,782)5,591,131 - - - - 3,046 - 74,944 - - - 56,1001,584,769 - 1,640,869 - - - - - - 4,553,470 - - - - 1,858,739 - 1,858,739 - - - - 3,119,722 - 3,344,788 416,2351,522,4924,804,1151,698,8203,504,422 - 13,173,074 - - - - - - 170,783 - - - - 473,871 - 473,871 - - - - (167,202) - (167,202) 416,2351,522,4924,804,1151,754,92010,377,367025,123,336 $419,937$1,522,492$4,804,115$4,334,575$11,552,635($536,782)$30,714,467 $25,123,336 40,211,396 3,940,304 2,202,775 (22,431,806) $49,046,005 The accompanying notes are an integral part of these financial statements. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2009 General Fund 2008A Taxable GO Housing Improvement Area Bonds Fund Public Safety Center Capital Building Fund Community Center Capital Building Fund Revenues: Taxes $6,590,306$ - $ - $ - Tax increment collections - - - - Special assessments - 103,193 - - Licenses and permits 179,586 - - - Intergovernmental 1,913,614 - - - Charges for services 530,461 - - - Fines and forfeitures 125,595 - - - Investment income: Interest and dividends 123,548 4,100111,600 36,700 Change in fair value (35,602)(1,200)(32,000)(10,500) Other revenues 7,143 - 400 - Total revenues 9,434,651 106,093 80,000 26,200 Expenditures: Current: General government 1,579,694 - - - Public safety 4,330,687 - - - Public works 1,245,794 - - - Culture and recreation 1,294,933 - - 1,927 Community development - 67,404 - - Capital outlay: General government - - - - Public safety 2,200 - 8,874,207 - Public works 90,331 - - - Culture and recreation 31,724 - - 1,646,938 Community development - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - 57,711 - - Issuance costs - - 30,639 - Developer incentives - - - - Total expenditures 8,575,363 125,115 8,904,846 1,648,865 Revenues over (under) expenditures 859,288 (19,022)(8,824,846)(1,622,665) Other financing sources (uses): Transfers in 371,241 - - - Transfers out (190,335) - (50,227) - Bonds issued - - 2,050,000 - Sale of capital assets - - - - Total other financing sources (uses)180,906 0 1,999,773 0 Net change in fund balance 1,040,194 (19,022)(6,825,073)(1,622,665) Fund balance - January 1 3,755,957 244,0887,302,3452,372,383 Fund balance - December 31 $4,796,151$225,066$477,272$749,718 The accompanying notes are an integral part of these financial statements. 38 Statement 4 Municipal State Aid Street Fund Capital Improvements General Gov't Buildings Capital Equipment Replacement General Gov't Capital Improvements PIR Fund Other Governmental Funds Interfund Eliminations Total Governmental Funds 2009 $ - $ - $ - $ - $1,339,557$ - $7,929,863 - - - - 1,288,175 - 1,288,175 - - - 775,899 - - 879,092 - - - - 256,032 - 435,618 1,232,863 - - - 630,878 - 3,777,355 - - - 35,971947,235 - 1,513,667 - - - - 14,360 - 139,955 - 53,700103,30036,993168,206 - 638,147 - (15,400)(29,600)(10,100)(47,600) - (182,002) - - - 1,70093,658 - 102,901 1,232,863 38,300 73,700 840,463 4,690,501 0 16,522,771 - 12,0545,635 - 49,591 - 1,646,974 - - 24,36023,08240,307 - 4,418,436 267,866 - - 105,988117,351 - 1,736,999 - 3,3811 - 703,393 - 2,003,635 - - - - 2,048,224 - 2,115,628 - 21,00124,707 - - - 45,708 - - 97,8255,60017,568 - 8,997,400 460,416 - 151,993248,500 - - 951,240 - 380,06328,266 - 169,967 - 2,256,958 - 22,750 - - 116,368 - 139,118 - - - - 783,974 - 783,974 - - - - 777,456 - 835,167 - 273 - 1,65723,620 - 56,189 - - - - 125,857 - 125,857 728,282 439,522 332,787 384,827 4,973,676 0 26,113,283 504,581 (401,222)(259,087)455,636 (283,175)0 (9,590,512) 1,29436,25063,767 - 2,074,336(2,088,657)458,231 (860,770)(19,364) - (481,660)(585,525)2,088,657(99,224) - 955,000 - 605,000580,000 - 4,190,000 - 62,57633,205 - - - 95,781 (859,476)1,034,462 96,972 123,340 2,068,811 0 4,644,788 (354,895)633,240 (162,115)578,976 1,785,636 0 (4,945,724) 771,130889,2524,966,2301,175,9448,591,731 - 30,069,060 $416,235$1,522,492$4,804,115$1,754,920$10,377,367$0$25,123,336 The accompanying notes are an integral part of these financial statements. 39 - This page intentionally left blank - 40 CITY OF COLUMBIA HEIGHTS, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2009 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)($4,945,724) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The difference is the amount by which outlays for capital assets exceeded depreciation in the current year.10,757,007 The net effect of various miscellaneous transactions involving capital assets, such as sales, trade-ins and abandonments was a decrease in net assets.(13,077) The issuance of long-term debt provides current financial resources to the governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction has any effect on net assets however. This amount is the net effect of these differences in the treatment of long-term debt.(3,406,026) Interest that accrues in the current year on long-term debt, but is not paid in the current year, does not consume current financial resources, and is therefore not reported in the governmental. funds. It does reduce net assets however, and is reported as an expense in the statement of activities.(70,036) Other postemployment employee benefits that accrue in the current year, but are not paid in the current year, do not consume current financial resources, and are therefore not reported in the governmental funds. They do reduce net assets however, and are reported as an expense in the statement of activities.(8,714) Revenue earned in prior years, that first becomes available in the current year, is reported in the governmental funds. Whereas, this amount was reported in the statement of activities in the prior year(s) in which it was earned.(132,529) The net expenses of certain activities of internal service funds are reported within governmental activities in the statement of activities.38,758 Change in net assets of governmental activities (Statement 2)$2,219,659 The accompanying notes are an integral part of these financial statements. 41 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2009 Assets:Water Utility FundSewer Utility Fund Current assets: Cash and cash equivalents$594,392$2,084,584 Cash and cash equivalents with fiscal agent - - Receivables: Accounts (net of allowance for uncollectibles)495,820329,087 Interest 2,5007,400 Due from other governmental units - current - 83,349 Interfund receivable - 186,648 Prepayments - 72,218 Inventory - at cost 2,695 - Total current assets1,095,407 2,763,286 Noncurrent assets: Capital assets: Land 45,223 36,586 Construction in progress 103,820 - Buildings 559,826 100,426 Equipment 456,629 840,942 Infrastructure 7,420,389 5,011,320 Total capital assets 8,585,887 5,989,274 Less: accumulated depreciation (3,630,125)(3,798,383) Net capital assets 4,955,762 2,190,891 Ttltt 4955762 2190891 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. Total noncurrent assets 4,955,762 2,190,891 Total assets 6,051,169 4,954,177 Liabilities: Current liabilities: Accounts payable 8,281 115,971 Accrued salaries and withholdings payable 5,114 2,996 Due to other governmental units 220,254 - Contracts payable - 66,650 Accrued interest payable 31,660 83 Deposits 1,000 - Compensated absences payable - current 1,077 1,155 Bonds payable - current 269,029 4,653 Total current liabilities 536,415 191,508 Noncurrent liabilities: Compensated absences payable - noncurrent 20,338 21,812 Bonds payable - noncurrent 1,770,573 - Total noncurrent liabilities 1,790,911 21,812 Total liabilities 2,327,326 213,320 Net assets: Invested in capital assets, net of related debt 2,979,252 2,186,238 Restricted for debt service 326,204 4,803 Unrestricted 418,387 2,549,816 Total net assets $3,723,843 $4,740,857 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. 42 Statement 6 Business-Type Activities - Enterprise Funds Refuse Utility Fund Storm Sewer Utility Fund Liquor Fund Total Enterprise Funds Internal Service Funds 2009 2009 $473,947 $86,394 $149,872 $3,389,189 $2,640,320 - - 408,632 408,632 - 330,782 75,445 478 1,231,612 - 1,900 800 - 12,600 6,400 32,171 - 632 116,152 - - - - 186,648 - - - 95,366 167,584 55,840 - - 2,134,357 2,137,052 36,796 838,800 162,639 2,789,337 7,649,469 2,739,356 - 254,724 2,006,714 2,343,247 15,779 - - - 103,820 - 6,000 - 3,915,062 4,581,314 1,585,993 108,690 95,719 375,215 1,877,195 353,508 - 1,477,536 - 13,909,245 - 114,690 1,827,979 6,296,991 22,814,821 1,955,280 (112,890)(476,767)(376,797)(8,394,962)(726,396) 1,800 1,351,212 5,920,194 14,419,859 1,228,884 1800 1351212 5920194 14419859 1228884 The accompanying notes are an integral part of these financial statements. 1,8001,351,2125,920,19414,419,8591,228,884 840,6001,513,8518,709,53122,069,3283,968,240 103,9341,149365,554594,88950,561 1,15666314,57924,5085,628 - 48,40181,456350,111 - - - 2,29068,940 - - 8,101109,704149,548 - - - - 1,000 - 220603,2025,71438,903 - 138,582140,000552,264 - 105,310 196,956 716,785 1,746,974 95,092 4,1601,13960,462107,911734,519 - 357,6754,900,0007,028,248 - 4,160 358,814 4,960,462 7,136,159 734,519 109,470555,7705,677,2478,883,133829,611 1,800854,9551,374,8107,397,0551,228,884 - 154,876162,552648,435 - 729,330(51,750)1,494,9225,140,7051,909,745 $731,130$958,081$3,032,28413,186,195$3,138,629 935,854 $14,122,049 The accompanying notes are an integral part of these financial statements. 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For The Year Ended December 31, 2009 Water Utility FundSewer Utility Fund Operating revenues: Charges for services $227,711 $1,464,356 Charges for sales, net of discounts (Note 1C)2,157,002 - Sale of water meters 85,550 - Total operating revenues 2,470,263 1,464,356 Operating expenses: Cost of sales, services and goods sold 992,621 896,603 Operating expense 614,322 619,243 Depreciation 213,484 183,511 Total operating expenses 1,820,427 1,699,357 Net income (loss) from operations 649,836 (235,001) Nonoperating revenues (expenses): Investment income: Interest and dividends 18,200 66,901 Change in fair value (5,100)(15,000) Intergovernmental - - Miscellaneous revenues 994 1,140 Miscellaneous expenses - - Interest and fiscal charges (71,532)(283) Total nonoperating revenues (expenses)(57,438)52,758 Net income (loss) before transfers 592,398 (182,243) Capital contributions - - Transfers in 24,224 - Transfers out (120,723)(120,722) Total transfers and capital contributions (96,499)(120,722) Change in net assets 495,899 (302,965) Total net assets - January 1 3,227,944 5,043,822 Total net assets - December 31 $3,723,843 $4,740,857 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 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 44 Statement 7 Refuse Utility Fund Storm Sewer Utility FundLiquor Fund Total Enterprise Funds Internal Service Funds 20092009 $1,383,979$367,093$ - $3,443,139$968,073 - - 7,962,88410,119,886105,979 - - - 85,550 - 1,383,979 367,093 7,962,884 13,648,575 1,074,052 1,156,501 - 6,085,5469,131,2711,181,492 87,791283,3861,170,4252,775,167 - 4,91574,330145,219621,45969,221 1,249,207 357,716 7,401,190 12,527,897 1,250,713 134,772 9,377 561,694 1,120,678 (176,661) 13,8006,00071104,97245,800 (3,900)(1,700) - (25,700)(13,200) 50,105 - - 50,10520,676 - 3,497 - 5,631 - - - (16,509)(16,509) - - (20,367)(247,171)(339,353) - 60,005 (12,570)(263,609)(220,854)53,276 194,777 (3,193)298,085 899,824 (123,385) - - - - 15,779 - - - 24,224215,000 (118,133)(1,000)(187,636)(548,214)(50,017) (118,133)(1,000)(187,636)(523,990)180,762 76,644 (4,193)110,449 375,834 57,377 654,486962,2742,921,83512,810,3613,081,252 $731,130 $958,081 $3,032,284 $13,186,195 $3,138,629 $375,834 2,841 $378,675 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2009 Water Utility FundSewer Utility Fund Cash flows from operating activities: Cash received from customers $2,489,358 $1,488,249 Cash received from interfund goods and services provided - - Cash paid to suppliers for goods and services (1,417,241)(1,085,850) Cash payments to employees for services (310,542)(268,085) Net cash flows from operating activities 761,575 134,314 Cash flows from noncapital financing activities: Transfers in 24,224 - Transfers out (120,723)(120,722) Intergovernmental - - Interfund receivable repaid by (advanced to) other funds 3,216 297,637 Interfund payable (repaid to) advanced by other funds (184,471) - Net cash flows from noncapital financing activities (277,754)176,915 Cash flows from capital and related financing activities: Acquisition of capital assets (214,721) - Bonds issued 325,000 - Principal payments - bonds (240,127)(4,469) Interest and fiscal charges - including capitalized interest (71,056)(361) Net cash flows from capital and related financing activities (200,904)(4,830) Cash flows from investing activities: Investment income: Interest and dividends 25,001 75,369 Change in fair value (5,100)(15,000) Net cash flows from investing activities 19,901 60,369 Net increase (decrease) in cash and cash equivalents 302,818 366,768 Total cash and cash equivalents - January 1 291,574 1,717,816 Total cash and cash equivalents - December 31 594,392 2,084,584 (Less) cash and cash equivalents with fiscal agent - December 31 - - Cash and cash equivalents - December 31 $594,392 $2,084,584 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 46 Statement 8 Page 1 of 2 Refuse Utility Fund Storm Sewer Utility FundLiquor FundEnterprise Funds Internal Service Funds 2009 2009 $1,373,419 $367,892 $7,963,906 $13,682,824 $30,821 - - - - 1,659,863 (1,170,256)(133,794)(6,636,890)(10,444,031)(807,284) (55,888)(109,549)(887,837)(1,631,901)(996,182) 147,275 124,549 439,179 1,606,892 (112,782) - - - 24,224 240,000 (118,133)(1,000)(187,636)(548,214)(75,017) 68,506 - - 68,506 20,676 1,138 - - 301,991 - - (39,680) - (224,151) - (48,489)(40,680)(187,636)(377,644)185,659 - - (55,608)(270,329)(75,231) - - - 325,000 - (130,431) - (375,027) - - (22,508)(242,306)(336,231) - 0 (152,939)(297,914)(656,587)(75,231) 14,900 7,210 841 123,321 59,590 (3,900)(1,700) - (25,700)(13,200) 11,000 5,510 841 97,621 46,390 109,786 (63,560)(45,530)670,282 44,036 364,161 149,954 604,034 3,127,539 2,596,284 473,947 86,394 558,504 3,797,821 2,640,320 - - (408,632)(408,632) - $473,947 $86,394 $149,872 $3,389,189 $2,640,320 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 47 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2006 Water Utility FundSewer Utility Fund Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss)$649,836 ($235,001) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 213,484 183,511 Miscellaneous revenues 994 1,140 Changes in assets and liabilities: (Increase) decrease in accounts receivable 18,101 (4,723) (Increase) decrease in due from other governmental units - 27,476 (Increase) decrease in prepayments - 2,499 Adjustment for nonoperating portion - - (Increase) decrease in inventory, at cost (867) - Increase (decrease) in accounts payable (18,726)113,791 Adjustment for nonoperating portion - - Increase (decrease) in accrued salaries and withholdings payable (9,849)(10,967) Adjustment for nonoperating portion - - Increase (decrease) in contracts payable - retained percentage - 66,650 Adjustment for nonoperating portion - - Increase (decrease) in due to other governmental units 56,667 - Adjustment for nonoperating portion (147,171) - Increase (decrease) in compensated absences payable (894)(10,062) Total adjustments 111,739 369,315 Net cash flows from operating activities $761,575 $134,314 Noncash capital and related financing activities: Capital assets purchased/constructed on account $147,171 $ - Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 48 Statement 8 Page 2 of 2 Refuse Utility Fund Storm Sewer Utility FundLiquor FundEnterprise Funds Internal Service Funds 2009 2009 $134,772 $9,377 $561,694 $1,120,678 ($176,661) 4,915 74,330 145,219 621,459 69,221 - 3,497 (16,509)(10,878) - (10,560)(2,698)9 129 - - - 1,013 28,489 - - - 8,052 10,551 6,971 - - (8,052)(8,052) - - (341,960)(342,827)(3,023) 14,259 (4)121,540 230,860 8,588 - - - - - (491)(4,457)(29,537)(55,301)(10,509) - - - - - - - 2,290 68,940 - - - (2,290)(2,290) - - 48,401 4,763 109,831 - - - - (147,171) - 4,380 (3,897)(7,053)(17,526)(7,369) 12,503 115,172 (122,515)486,214 63,879 $147,275 $124,549 $439,179 $1,606,892 ($112,782) $ - $ - $2,290 149,461 $15,779 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF FIDUCIARY NET ASSETS Statement 9 FIDUCIARY FUNDS December 31, 2009 Assets: Cash and investments $2,510 Due from other governmental units 8,533 Total assets $11,043 Liabilities: Accounts payable $8,559 Due to other governmental units 2,484 Total liabilities $11,043 The accompanying notes are an integral part of these financial statements. 50 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Columbia Heights, Minnesota (the City) was incorporated in 1898. A Council composed of an elected mayor and four council members governs the City. The Council exercises legislative authority and determines all matters of policy. The Manager, appointed by the Council, is responsible for the proper administration of all affairs relating to the City. The financial statements of the City 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 has two component units - the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). The HRA and the EDA are considered component units because the governing boards are substantively the same as that of the City and because the City is in a relationship of financial benefit or burden with each of the entities. The financial position and results of operations of the HRA and the EDA component units are presented using the blended method. 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 financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. 51 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency funds are custodial in nature and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City 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 City. The City reports the following major governmental funds: The general fund is the City’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 2008A taxable GO housing improvement area bonds fund was established to account for revenues and expenditures associated with the 2008A series general obligation taxable bonds issued to finance rehabilitation of the Sullivan Shores town homes development. These bonds will be repaid with special assessments to the rehabilitated properties. 52 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 The public safety center capital building fund was established to account for the planning, development and construction of a police and fire facility. The community center capital building fund was established to account for the planning, development and construction of a community center. The municipal state aid street fund is maintained according to state statute to account for maintenance and construction of municipal state aid street systems. The capital improvements general government buildings fund is used to account for construction and improvements to municipal buildings not accounted for in a separate fund. 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 assessed to the affected properties. The City 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 City reports the following fund types: Internal service funds account for central garage, information systems, insurance, and compensated absences services provided to other departments of the City 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 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. 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 enterprise funds and of the internal service funds are charges to customers for sales and services. Liquor fund sales are reported net of discounts. No other fund provides discounts. For 2009, liquor sales discounts were $30,518. 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 City’s policy to use restricted resources first, and then use unrestricted resources as they are needed. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. 54 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 The City Council annually adopts budgets prior to January 1 for the General Fund and the following special revenue funds: Nonmajor special revenue funds: Cable television fund Police community programs fund Library fund Community development fund Economic Development Authority (component unit): Economic Development Authority administration fund Housing and Redevelopment Authority (component unit): Parkview villa north fund Parkview villa south fund The budgets are prepared by fund, function and activity. The budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at the end of the budget year to the extent that they have not been expended. Total expenditures appropriated in the budget resolution may not legally exceed the estimated revenues available from various sources. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. Budget revisions at the fund level are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The legal level of budgetary control is therefore at the fund level. The City does not use encumbrance accounting. E. CASH AND INVESTMENTS Cash balances from all funds of the City are pooled and invested to the extent available in authorized investments. Investments are stated at fair value, based upon quoted market prices. Investment income is allocated to the individual funds on the basis of applicable cash balance participation by each fund using an average of monthly beginning cash and investment balances. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on the government-wide financial statements. F. RECEIVABLES AND PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as “interfund receivables/payables.” All short-term interfund receivables and payables at December 31 are planned to be eliminated in the subsequent year. Long-term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for property taxes, special assessments and other receivables, and have not been reported. G. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes received by the City are recognized as revenue for the current year. Delinquent taxes that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent taxes receivable in governmental funds are offset by deferred revenue. H. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with state statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County’s costs of administering all tax forfeit properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land, in which event the property is subject to such sale after five years. 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent and deferred special assessments receivable in governmental funds are offset by deferred revenue. I. INVENTORIES GOVERNMENTAL FUNDS The original cost of materials and supplies has been recorded as expenditures at the time of purchase. These funds do not maintain material amounts of inventories. Real estate held for resale is valued at the lower of cost or estimated net realizable value. PROPRIETARY FUNDS Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first- out (FIFO) method. J. PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. K. CAPITAL ASSETS Capital assets, which include land, buildings, equipment, and infrastructure assets (e.g., roads, sidewalks, water systems, sewer systems and similar items), are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. The City defines capital assets as assets with an estimated useful life in excess of one year and an initial individual cost of more than the following: Land $1 Buildings 25,000 Equipment 5,000 Infrastructure 250,000 Capitalization Threshold 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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. 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: 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 the vested portion 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. Typically, resources from the compensated absences fund are used to liquidate the liability for compensated absences. M. LONG-TERM OBLIGATIONS In the government-wide financial 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. Buildings (and building components)10 - 50 years Equipment3 - 15 years Infrastructure20 - 60 years Capital Assets 58 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 N. FUND EQUITY In the fund financial statements, governmental funds report reservations of fund balance for amounts not available for appropriation or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. O. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. P. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. Q. COMPARATIVE DATA/RECLASSIFICATIONS Certain comparative total data for the prior year has been presented in the government-wide financial statements in order to provide an understanding of the changes in the City’s financial position and operations. Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 states, “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 ($22,431,806) difference are as follows: Accrued interest payable ($396,179) Other postemployment benefits payable (20,141) Bonds payable (22,015,486) Adjustment to fund balance - total governmental funds - to arrive at net assets of governmental activities ($22,431,806) 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES The governmental fund statement of revenues, expenditures and changes in fund balance includes a reconciliation between net changes in fund balance – 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 states, “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The difference is the amount by which outlays for capital assets exceeded depreciation in the current year.” The details of this $10,757,007 difference are as follows: Total capital outlay in government fund financial statements $12,390,424 Capital outlay not capitalized (25,913) Depreciation expense (1,607,504) Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net assets of governmental activities.$10,757,007 60 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Another element of that reconciliation states, “The issuance of long-term debt provides current financial resources to the governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets however. This amount is the net effect of these differences in the treatment of long-term debt.” The details of this ($3,406,026) difference are as follows: Debt issued: General obligation bonds ($4,190,000) Principal repayments: General obligation bonds 774,974 Revenue bonds 9,000 Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net assets of governmental activities.($3,406,026) Another element of that reconciliation states, “Revenue earned in prior years, that that first becomes available in the current year is reported in the governmental funds. Whereas, this amount was reported in the statement of activities in the prior year(s) in which it was earned” The details of this ($132,529) difference are as follows: General property taxes deferred revenue: At December 31, 2008 ($287,340) At December 31, 2009 403,795 Tax increment taxes deferred revenue: At December 31, 2008 (61,798) At December 31, 2009 18,307 Special assessments deferred revenue: At December 31, 2008 (3,680,095) At December 31, 2009 3,474,602 Loans receivable deferred revenue: At December 31, 2008 (43,600) At December 31, 2009 43,600 Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net assets of governmental activities.($132,529) 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. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 2 DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds of the City. Also at December 31, 2009, a portion of the total cash and investments was held in trust by a fiscal agent for debt service under the terms of the EDA 2007B series bonds. The City's total cash and investment balances as of December 31, 2009 are as follows: Carrying Amount At Fair Value Investments $22,709,812 Deposits 7,855,961 Cash on hand 8,511 (Less) fidicuiary fund cash (2,510) $30,571,774 Cash and investments $30,163,142 Cash and investments with fiscal agent408,632 $30,571,774 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 and treasury bonds; (2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; (3) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; (4) Unrated general obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; (5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and (6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation. 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Deposits as of December 31, 2009 are as follows: Carrying Bank Amount At BalancesFair Value Demand deposits$1,445,954$759,409 Time deposits 7,016,0007,096,552 Total $8,461,954$7,855,961 B. INVESTMENTS Minnesota Statutes Section 118A authorizes the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies described in Section 118A.05. This includes primarily money market funds rated in the top two rating categories by a national rating service, and companies whose only investments are described in items a) through h) of this note. c) Obligations of the State of Minnesota or any of its municipalities as follows: (1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; (2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and (3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7, 469.178, subdivision 5 or 475.61, subdivision 6. h) Guaranteed investment contracts with certain U.S. financial institutions carrying only high quality unsecured debt, if the City has withdrawal rights upon a decline in debt quality. 63 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Investments as of December 31, 2009, are as follows: Weighted Average CarryingPercentage MaturitiesAmount Atof Fair Value In YearsFair ValuePer Issuer Notes issued by U.S. government agencies: Federal Home Loan Bank 7.0$3,692,46816.3% Federal Home Loan Mortgage Corporation6.39,986,21144.0% Federal National Mortgage Association 10.24,433,91019.5% Money market mutual funds: Evergreen U.S. Government Fund N/A3,224,33414.2% Western Asset Government Fund N/A 872,531 3.8% First American Treasury Obligation FundN/A 408,632 1.8% Other issuers N/A 91,7260.40% Total investments 22,709,812$ 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 - investments - As of December 31, 2009, the City's investments in the Notes issued by U.S. government agencies were all rated AAA by Standard & Poor's, and Aaa by Moody's Investors Service. The money market funds in which the City held shares at December 31, 2009, were invested solely in U.S. Government Obligations and/or securities guaranteed by the U.S. government, and those underlying securities are rated AAA by Standard and Poors and Aaa by Moody’s Investor Service. c) Concentration of credit risk - The City places no limit on the amount the City may invest in any one issuer. The table above details the percentage of the City's investments with each issuer at December 31, 2009. d) Custodial credit risk – For investments in securities, custodial credit risk is the risk that in the event of a failure of the counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. As of December 31, 2009, all investments of the City were insured, registered and held by the City or its agent in the City’s name. 64 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2009 are as follows: Nonmajor FundsTotal 2008A TaxableCapital Other GO Housing ImpImprovementGovernmental Area Bonds FundPIR FundFunds Special assessments receivable $918,322$2,123,022 $ - $3,041,344 Loan receivable - - 43,600 43,600 Total $918,322$2,123,022 $43,600$3,084,944 Major Funds As of January 1, 1996, the Metropolitan Council (MCES) assumed ownership of an existing interceptor pursuant to an agreement with the City of Hilltop regarding usage of interceptors owned and maintained by the City of Columbia Heights. The MCES acquired the interceptor at a cost of $330,414. This amount is being amortized through current value payments from MCES over a 15-year period with interest at 4%. As of December 31, 2009, a balance of $28,575 remained to be collected in 2010. This receivable is included in the amount reported 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-unavailable and deferred revenue-unearned reported in the governmental funds were as follows: UnavailableUnearned Delinquent property taxes receivable (General Fund)$388,830$ - Delinquent property taxes receivable (Nonmajor Funds)14,967 - Delinquent tax increment (Nonmajor Funds)18,307 - Delinquent special assessments (2008A GO Txbl. Hsg. Imp. Area Bonds Fund)2,286 - Delinquent special assessments (Capital Improvements - PIR Fund)120,673 - Special assessments not yet due (2008A GO Txbl. Hsg. Imp. Area Bonds Fund)960,801 - Special assessments not yet due (Capital Improvements - PIR Fund)2,390,840 - Loan recevable not yet due (Nonmajor Funds)43,600 - Contract service fees received but unearned (General Fund) - 128,136 Grant revenue conditioned on future use of real estate for resale (Nonmajor Funds) - 52,300 Rental fees received in advance (Nonmajor Funds) - 40,079 Forfeitures with ajudication pending (Nonmajor Funds) - 10,281 Total deferred revenue for governmental funds $3,940,304$230,796 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2009 is as follows: Beginning Ending BalanceAdditionsDeletionsBalance Governmental activities: Capital assets - not being depreciated: Land $3,415,458$210,233$ - $3,625,691 Construction in progress 7,552,36711,898,679(6,391,835)13,059,211 Total capital assets not being depreciated 10,967,82512,108,912(6,391,835)16,684,902 Capital assets - being depreciated: Buildings 11,875,1235,072,774(22,750)16,925,147 Equipment 6,405,665484,036(393,659)6,496,042 Infrastructure 24,305,5901,130,406 - 25,435,996 Total capital assets being depreciated 42,586,3786,687,216(416,409)48,857,185 Less accumulated depreciation for: Buildings 9,030,503281,907(22,513)9,289,897 Equipment 4,278,791486,845(380,819)4,384,817 Infrastructure 9,602,553886,959 - 10,489,512 Total accumulated depreciation 22,911,8471,655,711(403,332)24,164,226 Capital assets being depreciated - net 19,674,5315,031,505(13,077)24,692,959 Governmental activities capital assets - net 30,642,35617,140,417(6,404,912)41,377,861 Business-type activities: Capital assets - not being depreciated: Land 2,320,34922,898 - 2,343,247 Construction in progress - 361,892(258,072)103,820 Total capital assets not being depreciated 2,320,349384,790(258,072)2,447,067 Capital assets - being depreciated: Buildings 4,581,313 1 - 4,581,314 Equipment 1,961,34470,448 - 2,031,792 Infrastructure 13,651,173258,072 - 13,909,245 Total capital assets being depreciated 20,193,830328,521 020,522,351 Less accumulated depreciation for: Buildings 703,250133,610 - 836,860 Equipment 1,071,825154,099 - 1,225,924 Infrastructure 6,069,704354,652 - 6,424,356 Total accumulated depreciation 7,844,779642,361 08,487,140 Capital assets being depreciated - net 12,349,051(313,840)012,035,211 Business-type activities capital assets - net 14,669,40070,950(258,072)14,482,278 Total capital assets - net $45,311,756$17,211,367($6,662,984)$55,860,139 66 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Depreciation expense was charged to functions/programs of the primary government – governmental activities as follows: Governmental activities: General government $58,725 Public safety 176,689 Public works 1,066,861 Culture and recreation 150,871 Community development 154,358 Depreciation on capital assets held by governmental internal service activities is charged to each function based on use: Central garage 48,207 Total depreciation expense - capital assets held by governmental activities $1,655,711 Depreciation expense was charged to functions/programs of the primary government - business-type activities as follows: Business-type activities: Water $213,484 Sewer 183,399 Refuse 4,915 Storm sewer 74,330 Liquor 145,219 Depreciation on capital assets held by business-type internal service activities is charged to each function based on use: Information systems 21,014 Total depreciation expense - capital assets held by business-type activities $642,361 67 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 5 INTERFUND RECEIVABLES, PAYABLES , CAPITAL LEASES AND TRANSFERS INTERFUND RECEIVABLES, PAYABLES Individual fund interfund receivable and payable balances at December 31, 2009 are as follows: Fund ReceivablePayable Major Funds: General Fund $50,070$ - Capital Improvement PIR 24,055 - Sewer 186,648 - Nonmajor funds 462,657723,430 Total $723,430$723,430 $69,743 of these interfund balances are for services provided in 2009 and reimbursed in 2010. All other interfund balances at December 31, 2009, reflect lending arrangements to cover deficit cash balances at yearend, including some to finance the acquisition of certain real estate held for resale. Substantially all amounts are expected to be repaid within one year. INTERFUND TRANSFERS Interfund transfers during the year ended December 31, 2009 are as follows: Total Enterprise MunicipalCapitalCapital EqpOther State AidImprvmts GenReplacementGovtlInternal GeneralStreetGovt BldgGen GovtWaterFundsService Transfers out: Major funds: Governmental: General$ - $1,294$ - $50,000$ - $104,041$35,000$190,335 Public Safety Center Cap Bldg - - - - - 50,227 - 50,227 Municipal State Aid Street 2,500 - - - - 858,270 - 860,770 Capital Imprvmts Gen Govt Bldg - - - - - 19,364 - 19,364 Capital Improvements PIR - - - - 24,224457,436 - 481,660 Enterprise: - Water 85,723 - - - - - 35,000120,723 Sewer 85,722 - - - - - 35,000120,722 Refuse 83,133 - - - - - 35,000118,133 Storm Sewer 1,000 - - - - - - 1,000 Liquor 44,186 - - - - 108,45035,000187,636 Nonmajor funds: Other governmental funds 68,977 - - - - 476,54840,000585,525 Internal service funds - - 36,25013,767 - - 25,00075,017 Total $371,241$1,294$36,250$63,767$24,224$2,074,336$240,000$2,811,112 Transfers In Governmental Nonmajor FundsMajor Funds 68 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Transfers Out Transfers In AmountPurpose Community Development General Fund $12,193Admin labor allocation Community Development General Fund 12,194 Admin labor allocation Library General Fund 11,386 Admin labor allocation Cable Television General Fund 33,204 Admin labor allocation Liquor General Fund 44,186 Admin labor allocation Water General Fund 83,223 Admin labor allocation Sewer General Fund 83,222 Admin labor allocation Refuse General Fund 41,567 Admin labor allocation Refuse General Fund 41,566 Admin labor allocation Economic Dev Authority AdminstrationCommunity Development 347,573 Fund community development Liquor Police Community Programs 9,000 Fund D.A.R.E. program Municipal State Aid Street General Fund 2,500 Fund equipment replacement Water General Fund 2,500 Fund equipment replacement Sewer General Fund 2,500 Fund equipment replacement Storm Sewer General Fund 1,000 Fund equipment replacement General Fund Capital Equip Replacmt Gen Govt 50,000 Fund equipment replacement Insurance Capital Equip Replacmt Gen Govt 13,767 Fund equipment replacement General Fund Capital Improvement Parks 50,000 Fund park improvements General Fund Infrastructure Replacement 50,000 Fund infrastructure improvements Liquor Infrastructure Replacement 99,450 Fund infrastructure improvements Municipal State Aid Street Infrastructure Replacement 740,470 Fund infrastructure improvements Central Garage Capital Imp General Govt Buildings 36,250 Fund building improvements General Fund Information Systems 35,000 Fund information systems Cable Television Information Systems 35,000 Fund information systems Liquor Information Systems 35,000 Fund information systems Sewer Information Systems 35,000 Fund information systems Water Information Systems 35,000 Fund information systems Central Garage Information Systems 25,000 Fund information systems Refuse Information Systems 35,000 Fund information systems Library Information Systems 5,000 Fund information systems General Fund Capital Improvement Parks 4,041 Allocate project costs Capital Improvement PIR Water 24,224 Allocate project costs General Fund Municipal State Aid Street 1,294 Allocate project costs Municipal State Aid Street GO Improvement Bonds 2006A 117,800 Debt service Huset Park Area TIF Econ Dev Auth TIF Rev Bonds 2007112,100 Debt service Capital Imp General Govt Buildings GO Public Facilities Bonds 2009A 19,364 Debt service Public Safety Center Capital Building GO Public Facilities Bonds 2009A 50,227 Debt service Capital Improvement PIR GO Public Facilities Bonds 2009A 4,368 Debt service Capital Improvement PIR GO Improv/Rev Bonds 2006A 287,948 Debt service Capital Improvement PIR GO Public Facilities Bonds 2009A 74,319 Debt service Capital Improvement PIR GO Improvement Bonds 1999A 13,602 Debt service Capital Improvement PIR GO Improv/Re Bonds 2003A 77,199 Debt service GO Tax Increment Refunding Bonds 2004ATax Increment Bonds 16,875 Close out residual equity $2,811,112 69 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 6 LONG-TERM DEBT GENERAL OBLIGATION BONDS The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital improvements. General Obligation Bonds are direct obligations and are backed by the full faith and credit of the City. Any deficiencies in pledged revenues will be offset by general property taxes. All of the bonds are serial bonds, which require semiannual payments of principal and/or interest from the date the bonds are issued. There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions. General obligation bonds outstanding at December 31, 2009 are as follows: Pledged revenue, if any, in addition toOriginal InterestIssueFinal Balance general property taxesIssueRateDateMaturityEnd of Year Governmental activities: GO Street rehabilitation series 2007ANone$1,000,0004.00-4.375%9/19/20072/1/2018$935,000 GO Public safety center series 2008BNone10,000,0004.30-4.55%8/6/20082/1/203810,000,000 GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/20383,005,000 Taxable GO tax increment bonds series 2009BTax increment975,0003.40-5.10%7/1/20092/1/2021580,000 GO Improvement series 1999ASpecial assessments860,0003.45-4.30%5/1/19992/1/201065,000 GO Improvement series 2003A Special assessments1,332,8291.10-4.00%6/1/20032/1/2018815,072 GO Improvement series 2006ASpecial assessments2,759,5504.00%12/7/20062/1/20202,154,414 Taxable GO housing imprvmt area series 2008ASpecial assessments975,0005.00-6.05%7/16/20082/1/2024975,000 GO Public Facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019605,000 Business-type activities: GO Utility revenue series 1999B Utility revenues1,935,0003.45-4.30%5/1/19992/1/2010235,000 GO Improvement series 2003A Utility revenues222,1721.10-4.00%6/1/20032/1/201874,926 GO Utility revenue series 2003AUtility revenues1,045,0001.10-4.00%6/1/20032/1/2018700,000 GO Improvement series 2006AUtility revenues645,4504.00%12/7/20062/1/2017640,586 GO Utility revenue series 2006AUtility revenues670,0004.00%12/7/20062/1/2017565,000 GO Public Facilities series 2009AUtility revenues325,0002.00-4.75%7/1/20092/1/2019325,000 Total general obligation bonds outstanding $21,674,998 70 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 As of December 31, 2009, the annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending December 31PrincipalInterestPrincipalInterest 2010 $722,736$815,634$412,264$88,529 2011 985,620769,859229,38075,604 2012 1,016,397732,507273,60166,810 2013 979,899695,043285,10156,801 2014 981,083657,380303,91745,894 2015 776,583622,740278,41734,879 2016 814,313590,850280,68724,204 2017 843,146556,723311,85412,707 2018 814,709521,400125,291 4,106 2019 585,000490,62940,000 800 2020 575,000464,474 - - 2021-20252,615,0001,946,618 - - 2026-20302,320,0001,424,506 - - 2031-20352,955,000840,506 - - 2036-20382,150,000151,274 - - Total$19,134,486$11,280,143$2,540,512$410,334 Governmental Activities Business-Type Activities REVENUE BONDS The City issues revenue bonds for which the City pledges only the income derived from the acquired or constructed assets or redevelopment to pay the debt service. All of the bonds are serial bonds, which require semiannual payments of principal and/or interest from the date the bonds are issued. There are a number of limitations and restrictions contained in the bond indentures. The City is in compliance with all significant limitations and restrictions. Revenue bonds outstanding at December 31, 2009 are as follows: Original InterestIssueFinal Balance Pledged revenueIssueRateDateMaturityEnd of Year Governmental activities: Tax increment revenue series 2007Tax increment$2,890,0005.00-5.375%8/3/20072/15/2032$2,881,000 Business-type activities: Public facility lease revenue series 2007B Liquor revenues5,040,000 4.50-5.00%9/19/20072/1/20305,040,000 Total revenue bonds outstanding $7,921,000 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 As of December 31, 2009, the annual debt service requirements to maturity for revenue bonds are as follows: Fiscal Year Ending December 31PrincipalInterestPrincipalInterest 2010 $43,000$151,063$140,000$237,155 2011 48,000148,788150,000230,630 2012 53,000146,263155,000223,768 2013 58,000143,488165,000216,568 2014 62,000140,488170,000209,030 2015 68,000137,238180,000201,155 2016 74,000133,688185,000192,942 2017 80,000129,838195,000184,393 2018 87,000125,576205,000175,239 2019 94,000120,870215,000165,474 2020 102,000115,774230,000155,128 2021-2025636,000486,6751,330,000595,453 2026-2030900,000282,2941,720,000223,105 2031-2032576,00034,722 - - Total$2,881,000$2,296,765$5,040,000$3,010,040 Governmental Activities Business-Type Activities PLEDGED REVENUES Refer to the schedules above for the terms of bonds with pledged revenues. Additional information on pledged revenues by type, as of December 31, 2009, and for the the year then ended, is as follows: Related BondAs PercentageRelated Bond Pledged ActivityPrincipalof RevenuePrincipalPledged Revenue Financedand InterestPledgedand InterestRevenue Project-specific Street special assessmentsimprovements$3,785,181 95%$573,832$464,368 Project-specific Private special assessmentsredevelopment 1,461,013 95%57,287106,093 Project-specific Public/Private tax increment redevelopment 5,971,195 83%161,363515,246 Water, sewer and storm-Utility system sewer net revenuesimprovements 2,950,843 62%468,113752,137 Annual appropriationMunicipal store of liquor net revenuesconstruction 8,050,040 100%240,305240,376 Total Remaining Current Year 72 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2009, is as follows: Beginning EndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental activities: Bonds payable: General obligation bonds repaid only with general taxes$11,000,000$3,005,000($65,000)$13,940,000$85,000 General obligation bonds with other pledged revenues 4,719,4601,185,000(709,974)5,194,486637,736 Revenue bonds 2,890,000 - (9,000)2,881,00043,000 Total bonds payable 18,609,4604,190,000(783,974)22,015,486765,736 Compensated absences 772,443616,613(625,420)763,63638,411 Postemployment benefits other than pensions 11,42725,891(17,177)20,141 - Total governmental activity long-term liabilities$19,393,330$4,832,504($1,426,571)$22,799,263$804,147 Business-type activities: Bonds payable: General obligation bonds repaid only with general taxes$ - $ - $ - $ - $ - General obligation bonds with other pledged revenues 2,590,540325,000(375,028)2,540,512412,264 Revenue bonds 5,040,000 - - 5,040,000140,000 Total bonds payable 7,630,540325,000(375,028)7,580,512552,264 Compensated absences 139,499134,998(151,086)123,4116,206 Total business-type activity long-term liabilities $7,770,039$459,998($526,114)$7,703,923$558,470 For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an internal service fund. Note 7 CONDUIT DEBT From time to time, the City 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, the State of Minnesota, nor any political subdivision thereof, is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2009, there were Revenue Bonds of this type outstanding with an estimated aggregate principal amount payable of approximately $22,480,000. 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 8 FUND EQUITY The following funds had a fund deficit as of December 31, 2009: Nonmajor Funds: Debt Service Funds: G.O Improvement Revenue Bonds 2003A($24,055) Sheffield TIF Redevelopment (143,147) ($167,202) The City will finance these deficits through external or internal sources in future years. At December 31, 2009 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: MajorNonmajor FundsFundsTotals General Fund: Reserved for prepayments $71,898$ - $71,898 Designated for working capital 4,553,470 - 4,553,470 Special Revenue Funds: Reserved for prepayments - 3,046 3,046 Reserved for real estate held for resale - 434,418434,418 Designated for working capital - 100,208100,208 Designated for maintenance - 1,758,5311,758,531 Debt Service Funds: Reserved for real estate held for resale - 745,652745,652 Designated for debt service 225,0663,119,7223,344,788 Capital Projects Funds: Reserved for real estate held for resale 56,100404,699460,799 Designated for capital expenditures 9,668,6523,504,42213,173,074 $14,575,186$10,070,698$24,645,884 74 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 9 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The City has no current employees that are Basic Plan members. All new members must participate in the Coordinated Plan. All police officers and firefighters who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members and benefits to survivors upon death of eligible members. Benefits are established by state statute and vest after three years of credited service. The defined retirement benefits are based on a member’s highest average salary for any five successive years of allowable service, age and years of credit at termination of service. For all PEPFF and PERF members that began service prior to July 1, 1989, a full annuity is available when age plus years of service equal 90. For these members, benefits are calculated using the greater of the step rate or level rate formulas. Only the level rate formula applies to members that began service after June 30, 1989. A reduced retirement annuity is 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 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. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026. 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Coordinated Plan members are required to contribute 6.0% of their annual covered salary. The PEPFF members are required to contribute 9.4% of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll: 6.75% for Coordinated Plan PERF members, and 14.1% for PEPFF members. Employer contribution rates for the Coordinated Plan PERF members will increase to 7% effective January 1, 2010. 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,PERFPEPFF 2007 $276,252$269,611 2008 307,183306,489 2009 319,601369,627 Note 10 DEFINED BENEFIT PENSION PLAN - POLICE AND FIRE CONSOLIDATION FUND TERMINATED PLAN - PFCF Until July 1, 1999, the City 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’s 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 were $56,706 for the fire and police accounts. During 2003, the entire outstanding amount of $325,675 was paid off. 76 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 11 DEFINED CONTRIBUTION PLAN A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION The Columbia Heights Fire Department Relief Association is the administrator of a single-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. 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. The plan is funded through state aid, investment income and discretionary contributions from the City. For 2009, state aid was contributed to the plan. This state aid revenue and the related contribution expense/expenditure of $66,404 are recognized in the accompanying financial statements for the year ended December 31, 2009. B. COUNCIL MEMBERS Certain council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under section 401(a) of the Internal Revenue Code and all contributions by or on behalf of the employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary, which is matched by the elected official’s employer. In 2009, plan members contributed $2,325 and the City contributed $2,325. 77 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. PLAN DESCRIPTION The City administers a single-employer defined benefit health care plan (the plan.) By state statute, the plan provides an implicit rate subsidy for retired participants by allowing retirees under age 65 to purchase health insurance at the premium rate available to active employees. In addition, by state statute, the plan provides payment of insurance premiums, up to age 65, for public safety employees that retire with a qualifying disability, equal to the current employer-paid portion of premiums for an active employee. The employer-paid portion of premiums for an active employee is determined periodically by negotiation between the City and collective bargaining units of city employees. The plan does not issue a publicly available financial report. B. FUNDING POLICY Participants under the implicit rate subsidy provision are required to contribute 100% of the stated premium billed by the insurer. For 2009, participants under disabled public safety retiree provision were required to contribute $0 for single coverage or a portion of the stated premium billed by the insurer for family coverage. Total 2009 participant contributions were $61,338. Under both provisions of the plan, the City is only required to contribute on a pay-as-go basis. This amount is listed below for the current year. The State of Minnesota, solely at its option, reimburses the City annually for a portion of the City’s costs under the disabled public safety retiree provision. Historically, these reimbursements have approximated 60% of the pay-as-go cost of this plan provision. These reimbursements are reported as revenue in the year received, separate from OPEB expenses/expenditures. 78 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 C. ANNUAL OPEB COST AND NET OPEB OBLIGATION The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) determined by periodic actuarial studies. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize the unfunded actuarial liability over a period not to exceed thirty years. The components of the City’s OPEB cost for the year and the changes in the City’s net OPEB obligation to the plan are as follows: Year Ended December 31, 2009 Annual required contribution $25,942 Interest on net OPEB obligation 343 Adjustment to annual required contribution (394) Annual OPEB cost 25,891 Contributions made by City (17,177) Increase in net OPEB obligation 8,714 Net OPEB obligation-beginning of year 11,427 Net OPEB obligation-end of year $20,141 D. FUNDED STATUS AND FUNDING PROGRESS As of December 31, 2008 (the first and most recent year for which a valuation was required) , the actuarial accrued liability for benefits was $257,138; all of which was unfunded. Under the actuarial cost method used to calculate this, this liability is not a function of the annual payroll of active employees covered by the plan (the covered payroll). Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information, beginning in 2008, about the whether the actuarial value of plan assets is increasing or decreasing over time, relative to the actuarial accrued liability for benefits. E. METHODS AND ASSUMPTIONS The projection of benefits for financial reporting purposes is based on the type of benefits provided by the substantive plan at each valuation date and the historical pattern of sharing benefit costs between the City and the participants to that point. The methods used include techniques designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 The following methods and simplifying assumptions were used: Actuarial cost method – Projected unit credit Actuarial asset valuation method – Not applicable Amortization of UAAL – Level dollar method over a thirty year closed period Healthcare cost trend rate – 9% initially, declining to 5% after five years Inflation rate assumed – less than 5% annual Investment return assumed – 3% annual Retirement age assumed - Public safety employees age 52, all others age 62 Turnover rate – based on actual experience for City for the years 2004-2008 Mortality – Life expectancies were based on the 2000 Retired Pensioners Mortality Rates for Male and Female 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. 80 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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 may be 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 yearend. At December 31, 2009, the City’s committed obligation for such projects was approximately $198,000. Additionally, under the terms of various 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. Note 14 ECONOMIC DEPENDENCY The City water utility purchases all of its water from a single supplier, the City of Minneapolis. The current contract with this supplier ends May 31, 2034. The contract provides for annual rate adjustments, stated as a percentage of the rate the City of Minneapolis charges its in-city customers. At present, the City of Columbia Heights has no alternate source of water supply. 81 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS For the year ended December 31, 2009, the City implemented the following statements issued by the Governmental Accounting Standards Boards (GASB), which did not have a material effect on the accompanying financial statements: Statement No. 52 Land and Other Real Estate Held as Investments By Endowments. The provisions of this Statement are effective for fiscal periods beginning after June 15, 2008. Statement No. 55 The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The provisions of this Statement were effective upon issuance. Statement No. 56 Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. The provisions of this Statement were effective upon issuance. The Governmental Accounting Standards Boards (GASB) recently approved the following statements, which were not implemented for the accompanying financial statements for the year ended December 31, 2009. The effect these standards may have on future financial statements is not determinable at this time: Statement No. 51 Accounting and Financial Reporting for Intangible Assets. The provisions of this Statement are effective for fiscal periods beginning after June 15, 2009. Statement No. 53 Accounting and Financial Reporting for Derivative Instruments. The provisions of this Statement are effective for fiscal periods beginning after June 15, 2009. Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement are effective for fiscal periods beginning after June 10, 2010. Statement No. 57 OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. The provisions of this Statement are effective for fiscal periods beginning after June 15, 2011. Statement No. 58 Accounting and Financial Reporting for Chapter 9 Bankruptcies. The provisions of this Statement are effective for fiscal periods beginning after June 15, 2009.\ 82 REQUIRED SUPPLEMENTARY INFORMATION 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 2 For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget2008 ActualPositive Actual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes $6,560,902$6,107,954$6,590,306$482,352$5,808,662 Licenses and permits 134,250134,250179,58645,336135,739 Intergovernmental: Market value homestead credit - 452,948452,948 - 451,574 All other 1,756,7001,770,0271,460,666(309,361)1,212,076 Charges for services 551,200583,529530,461(53,068)563,612 Fines and forfeitures 133,000133,000125,595(7,405)121,468 Investment income: Interest and dividends 100,000100,000123,54823,54891,357 Change in fair value (25,000)(25,000)(35,602)(10,602)6,507 Other revenues 11,00011,0007,143(3,857)4,255 Total revenues 9,222,052 9,267,708 9,434,651 166,943 8,395,250 Expenditures: General government: Council 165,554134,509132,2612,248188,986 Manager 432,120383,715380,7752,940397,926 Clerk 58,16950,19447,6092,58542,522 Legal 186,500186,500167,80918,691166,691 Finance 686,000665,092625,07340,019661,791 Assessing 120,728120,728115,3345,39498,168 General government buildings 155,699155,699110,83344,866115,253 Total general government 1,804,770 1,696,437 1,579,694 116,743 1,671,337 Public safety: Police and animal control 3,478,7683,249,6473,208,48141,1663,043,720 Fire and emergency management1,225,4591,149,8311,124,40625,4251,198,002 Total public safety 4,704,227 4,399,478 4,332,887 66,591 4,241,722 Public works: Engineering 331,279329,768329,765 3237,981 Maintenance 1,027,314928,978920,9598,019906,399 Sanitation 155,434106,25575,53630,719124,968 Total public works 1,514,027 1,365,001 1,326,260 38,741 1,269,348 Other departments: Parks and recreation 1,535,3201,396,5461,326,65769,8891,406,568 Contingencies 50,00025,9569,86516,0912,169 Total other departments 1,585,320 1,422,502 1,336,522 85,980 1,408,737 Total expenditures 9,608,344 8,883,418 8,575,363 308,055 8,591,144 Revenues over (under) expenditures (386,292)384,290859,288474,998(195,894) 2009 84 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 2 For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget2008 ActualPositive Actual OriginalFinalAmounts(Negative)Amounts Other financing sources (uses): Sale of capital assets $4,000$4,000$ - ($4,000)$ - Transfers in 362,741362,741371,2418,500396,647 Transfers out (185,000)(190,335)(190,335) - (423,942) Total other financing sources (uses)181,741 176,406 180,906 4,500 (27,295) Net change in fund balance ($204,551)$560,696 1,040,194$479,498 (223,189) Fund balance - January 1 3,755,957 3,979,146 Fund balance - December 31 $4,796,151 $3,755,957 2009 85 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN For The Year Ended December 31, 2009 Actuarial Accrued UAAL as a ActuarialActuarialLiability (AAL)Unfunded Percentage ValuationValue of - ProjectedAAL Funded Coveredof Covered Date AssetsUnit Credit(UAAL)Ratio Payroll Payroll 1/1/2008$ - $257,138 $257,1380%N/A N/A 86 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE NOTE TO RSI December 31, 2009 Note A BUDGETS The General Fund and select Special Revenue Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level for all Funds. 87 - This page intentionally left blank - 88 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 89 NONMAJOR GOVERNMENTAL FUNDS 90 SPECIAL REVENUE FUNDS A Special Revenue Fund is used to account for the proceeds of special revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal, and related costs on general long-term debt (other than debt of the proprietary funds.) CAPITAL PROJECT FUNDS The Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds.) 91 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING BALANCE SHEET Statement 12 NONMAJOR GOVERNMENTAL FUNDS December 31, 2009 Total Nonmajor Special DebtCapital Governmental Assets RevenueServiceProjectFunds Cash and investments $2,829,912$3,309,497$3,045,831$9,185,240 Receivables: Accounts 43,712 - 52,37196,083 Taxes 18,33130,465 - 48,796 Interest 8,500 7,400 7,60023,500 Loans 43,600 - - 43,600 Due from other governmental units 46,898 - 5,74652,644 Interfund receivable 62,657 - 400,000462,657 Prepayments 3,046 - - 3,046 Real estate held for resale 486,718745,652404,6991,637,069 Total assets $3,543,374$4,093,014$3,916,247$11,552,635 Liabilities and Fund Balance Liabilities: Accounts payable $49,249$74,229 $350$123,828 Accrued salaries and withholdings payable 13,778 - - 13,778 Contracts payable - retained percentage - - 4,424 4,424 Due to other governmental units 37,27966,186 - 103,465 Interfund payable 487,310236,120 - 723,430 Deferred revenue 161,22718,307 - 179,534 Deposits 24,457 - 2,35226,809 Total liabilities 773,300394,842 7,1261,175,268 Fund balance: Reserved for: Prepayments 3,046 - - 3,046 Real estate held for resale 434,418745,652404,6991,584,769 Unreserved: Designated for working capital 100,208 - - 100,208 Designated for maintenance 1,758,531 - - 1,758,531 Designated for debt service - 3,119,722 - 3,119,722 Designated for capital expenditures - - 3,504,4223,504,422 Undesignated 473,871(167,202) - 306,669 Total fund balance 2,770,0743,698,1723,909,12110,377,367 Total liabilities and fund balance $3,543,374$4,093,014$3,916,247$11,552,635 92 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 13 NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2009 Total Nonmajor Special Debt CapitalGovernmental RevenueService Project Funds Revenues: Taxes $896,059$443,498$ - $1,339,557 Tax increment collections - 1,288,175 - 1,288,175 Licenses and permits 256,032 - - 256,032 Intergovernmental 508,388118,165 4,325630,878 Charges for services 891,792 - 55,443947,235 Fines and forfeitures 14,360 - - 14,360 Investment income: Interest and dividends 61,232 53,074 53,900168,206 Change in fair value (17,300)(15,000)(15,300)(47,600) Other revenues 93,583 - 75 93,658 Total revenues 2,704,146 1,887,912 98,443 4,690,501 Expenditures: Current: General government 49,591 - - 49,591 Public safety 40,307 - - 40,307 Public works - - 117,351117,351 Cultureandrecreation 696924 6469 703393Culture and recreation 696,924 - 6,469 703,393 Community development 1,177,659702,043168,5222,048,224 Capital outlay: Public safety 17,568 - - 17,568 Public works - - - - Culture and recreation 38,503 - 131,464169,967 Community development 116,268 - 100116,368 Debt service: Principal retirement - 783,974 - 783,974 Interest and fiscal charges - 777,456 - 777,456 Developer incentives - 125,857 - 125,857 Issuance costs - 23,620 - 23,620 Total expenditures 2,136,820 2,412,950 423,906 4,973,676 Revenues over (under) expenditures 567,326 (525,038)(325,463)(283,175) Other financing sources (uses): Transfers in 356,573773,802943,9612,074,336 Transfers out (456,550)(128,975) - (585,525) Bonds issued - 580,000 - 580,000 Total other financing sources (uses)(99,977)1,224,827 943,961 2,068,811 Net change in fund balance 467,349 699,789 618,498 1,785,636 Fund balance - January 1 2,302,7252,998,3833,290,6238,591,731 Fund balance - December 31 $2,770,074$3,698,172$3,909,121$10,377,367 93 - This page intentionally left blank - 94 NONMAJOR SPECIAL REVENUE FUNDS The City of Columbia Heights had the following Nonmajor Special Revenue Funds during the year: Cable Television Fund 225 – established to account for revenues and expenditures associated with the cable television franchise. Police Forfeiture Fund 265 – established to account for forfeited cash and property received by the police department. Police Community Programs Fund 270 – established to account for revenues and expenditures of various police activities, including the DARE (Drug Abuse Resistance Education) program, police reserve officers and other activities. Police Grants Fund 272 – established to account for revenues and expenditures of various grants for police activities. Library Fund 240 – established in 1993 to account for revenues and expenditures of the library. After School Programs Fund 261 – established to account for revenues and expenditures associated with various youth enrichment activities conducted by the recreation department and the library, under agreements with Independent School District 13. C.H.A.S.E. Fund 250 – established to account for revenues and expenditures associated with a certain State grant passed through Independent School District 13 to the City for youth enrichment programs. Contributed Projects – Recreation Fund 881 – established to monitor contributions for recreational activities and related expenditures. Contributed Projects – Other Fund 883 – established to monitor contributions and related expenditures for activities other than recreation. Flex Benefit Fund 887 – established to account for contributions by employees and related expenditures for flexible benefits. Special Projects Fund 226 – established to monitor revenues from special projects and related expenditures. 95 Community Development Fund 201 – established to account for revenues and expenditures associated with planning, building inspections, and community development projects within the City. Anoka County Comm Dev Programs Fund 202 – established to account for revenues and expenditures associated with federal community development block grants passed though Anoka County to the City. Economic Development Authority – a separate legal entity from the City. The mayor and City Council comprise the majority membership of this component unit. Its purpose is economic development in the City. Economic Development Authority Administration Fund 204 – established to account for revenues and expenditures of all EDA activity not accounted for in other EDA funds. Business Revolving Loan Fund 299 – established to account for revenues and expenditures associated with certain business development. 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 the revenues and expenditures of the low-income, federally subsidized portion of a senior housing complex. Parkview Villa South Fund 213 – established to account for the revenues and expenditures of the market-rate, non-federal portion of a senior housing complex. Rental Housing Fund 235 – established to account for the revenues and expenditures of City-owned rental properties. 96 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 14 NONMAJOR SPECIAL REVENUE FUNDS Page 1 of 2 December 31, 2009 Cable Television Fund 225 Police Forfeiture Fund 265 Police Community Programs Fund 270 Police Grants Fund 272 Assets Cash and investments $232,279$11,591$44,719$ - Receivables: Accounts 41,488 - - - Taxes - - - - Interest 800 - - - Loans - - - - Due from other governmental units - - - 17,568 Interfund receivable - - - - Prepayments - - - - Real estate held for resale - - - - Total assets $274,567 $11,591 $44,719 $17,568 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $184$ - Accrued salaries and withholdings payable 29 - 45 - Due to other governmental units - - - - Interfund payable - - - 17,568 Deferred revenue - 10,281 - - Deposits - - - - Total liabilities 29 10,281 22917,568 Fund balance: Reserved for prepayments - - - - Reserved for real estate held for resale - - - - Unreserved: Designated for working capital - - - - Designated for maintenance 274,538 - - - Undesignated - 1,31044,490 - Total fund balance 274,538 1,31044,490 0 Total liabilities and fund balance $274,567 $11,591 $44,719 $17,568 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2009 Library Fund 240 After-School Programs Fund 261 C.H.A.S.E. Fund 250 Contributed Projects - Recreation - Fund 881 Assets Cash and investments $115,799$119,550$ - $87,903 Receivables: Accounts 4 - - - Taxes - - - - Interest 800 400 - 300 Loans - - - - Due from other governmental units - 4,648 - - Interfund receivable - - - - Prepayments 3,046 - - - Real estate held for resale - - - - Total assets $119,649 $124,598 $0 $88,203 Liabilities and Fund Balance Liabilities: Accounts payable $5,317 $1,180$ - $ - Accrued salaries and withholdings payable 6,836 178 - - Due to other governmental units 4,242 308 - - Interfund payable - - - - Deferred revenue - - - - Deposits - - - - Total liabilities 16,395 1,666 0 0 Fund balance: Reserved for prepayments 3,046 - - - Reserved for real estate held for resale - - - - Unreserved: Designated for working capital 100,208 - - - Designated for maintenance - - - - Undesignated - 122,932 - 88,203 Total fund balance 103,254122,932 088,203 Total liabilities and fund balance $119,649 $124,598 $0 $88,203 98 Statement 14 Page 2 of 2 Contributed Projects - Other - Fund 883 Flex Benefit Fund 887 Special Projects Fund 226 Community Development Fund 201 Anoka County Comm Dev Programs Fund 202 Economic Development Auth. Funds (Component Unit) Housing and Redevelopment Auth. Funds (Component Unit) Total Nonmajor Special Revenue Funds $272,173$ - $211,585$134,141$1,640$108,853$1,489,679$2,829,912 - - - 991 - - 1,22943,712 - - - - - 18,331 - 18,331 1,000 - 700 400 - 100 4,0008,500 - - - - - 43,600 - 43,600 - - - - 4,670 - 20,01246,898 - - - 35,780 - 25,417 1,46062,657 - - - - - - - 3,046 - - - - 75,745410,973 - 486,718 $273,173 $0 $212,285 $171,312 $82,055 $607,274 $1,516,380 $3,543,374 $375$ - $ - $1,005$ - $70 $41,118$49,249 - - - 6,690 - - - 13,778 - - - - - - 32,72937,279 - - - - - 400,000 69,742487,310 - - 32,896 - 52,30058,565 7,185161,227 - - - 1,250 - - 23,20724,457 375 032,8968,94552,300458,635 173,981773,300 - - - - - - - 3,046 - - - - 23,445410,973 - 434,418 - - - - - - - 100,208 141,594 - - - - - 1,342,3991,758,531 131,204 - 179,389162,3676,310(262,334) - 473,871 272,798 0179,389162,36729,755148,6391,342,3992,770,074 $273,173 $0 $212,285 $171,312 $82,055 $607,274 $1,516,380 $3,543,374 99 - This page intentionally left blank - 100 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 15 CHANGES IN FUND BALANCE Page 1 of 2 NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2009 3 Cable Television Fund 225 Police Forfeiture Fund 265 Police Community Programs Fund 270 Police Grants Fund 272 Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - 2,718 19,520 Fees/program revenues 167,351 - - - Rents - - - - Fines and forfeitures - 538 - - Investment income: Interest and dividends 6,000 - - - Change in fair value (1,700) - - - Other revenues: Contributions - - - - Miscellaneous - - - 8,000 Total revenues 171,651 538 2,718 27,520 Expenditures:Expenditures: Personal services 2,212 - 11,773 - Supplies 87 3,519 4,869 8,000 Other services and charges 45,787 - 516 1,952 Capital outlay - - - 17,568 Total expenditures 48,086 3,519 17,158 27,520 Revenues over (under) expenditures 123,565 (2,981)(14,440)0 Other financing sources (uses): Transfers in - - 9,000 - Transfers out (68,204) - - - Sale of capital assets - - - - Total other financing sources (uses)(68,204)0 9,000 0 Net change in fund balance 55,361 (2,981)(5,440)0 Fund balance - January 1 219,177 4,291 49,930 - Fund balance - December 31 $274,538 $1,310 $44,490 $0 101 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, 2009 3 Library Fund 240 After-School Programs Fund 261 C.H.A.S.E. Fund 250 Contributed Projects - Recreation - Fund 881 Revenues: Taxes $573,215$ - $ - $ - Licenses and permits - - - - Intergovernmental 123,856 42,712 - - Fees/Program revenues 9,130 18,719 - - Rents - - - - Fines and forfeitures 13,822 - - - Investment income: Interest and dividends 5,300 2,800 - 2,300 Change in fair value (1,500)(800) - (700) Other revenues: Contributions - - - 18,300 Miscellaneous - - - - Total revenues 723,823 63,431 0 19,900 Expenditures:Expenditures: Personal services 463,429 24,841 - - Supplies 90,477 2,987 - 9,575 Other services and charges 80,164 17,051 - 4,900 Capital outlay - - - - Total expenditures 634,070 44,879 0 14,475 Revenues over (under) expenditures 89,753 18,552 0 5,425 Other financing sources (uses): Transfers in - - - - Transfers out (16,386) - - - Sale of capital assets - - - - Total other financing sources (uses)(16,386)0 0 0 Net change in fund balance 73,367 18,552 0 5,425 Fund balance - January 1 29,887 104,380 - 82,778 Fund balance - December 31 $103,254 $122,932 $0 $88,203 102 Statement 15 Page 2 of 2 Contributed Projects - Other - Fund 883 Flex Benefit Fund 887 Special Projects Fund 226 Community Development Fund 201 Anoka County Comm Dev Programs Fund 202 Economic Development Auth. Funds (Component Unit) Housing and Redevelopment Auth. Funds (Component Unit) Total Nonmajor Special Revenue Funds $ - $ - $ - $ - $ - $322,844$ - $896,059 - - - 256,032 - - - 256,032 - - - - 28,27516,305275,002508,388 - - 20,295 - - - - 215,495 - - 62,701 - - - 613,596676,297 - - - - - - - 14,360 7,400 - 5,0002,700100 1,432 28,20061,232 (2,100) - (1,400)(800) - (200)(8,100)(17,300) 54,419 - - - - - - 72,719 - - - - - - 12,86420,864 59,719 086,596257,93228,375340,381921,5622,704,146 1,505 - - 433,101 - - 35,780972,641 12,088 - - 3,253 - - 31,537166,392 1,090 - 65,05129,1814,66870575,018825,448 38,503 - - - - 20,20796,061172,339 53,186065,051465,5354,66820,277738,3962,136,820 6,533021,545(207,603)23,707320,104183,166567,326 - - - 347,573 - - - 356,573 - - - (24,387) - (347,573) - (456,550) - - - - - - - - 0 0 0323,186 0(347,573)0(99,977) 6,533 021,545115,58323,707(27,469)183,166467,349 266,265 - 157,84446,7846,048176,1081,159,2332,302,725 $272,798 $0 $179,389 $162,367 $29,755 $148,639 $1,342,399 $2,770,074 103 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 16 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Franchise fees $160,000$160,000$167,351$7,351$167,392 Investment income: Interest and dividends - - 6,0006,0005,560 Change in fair value - - (1,700)(1,700)400 Total revenues 160,000160,000171,65111,651173,352 Expenditures: Personal services 6,4586,4582,2124,2462,388 Supplies 1,6501,650 871,563 290 Other services and charges 35,10035,10045,787(10,687)28,412 Capital outlay 20,00020,000 - 20,000 - Total expenditures 63,20863,20848,08615,12231,090 Revenues over expenditures 96,79296,792123,56526,773142,262 Other financing sources (uses): Transfers out (68,204)(68,204)(68,204) - (62,388) Net change in fund balance $28,588 $28,588 55,361$26,773 79,874 Fund balance - January 1 219,177 139,303 Fund balance - December 31 $274,538 $219,177 2009 104 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 17 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 20092008 Revenues: Forfeitures $538 $5,281 Expenditures: Supplies 3,519 1,072 Revenues over (under) expenditures (2,981)4,209 Fund balance - January 1 4,291 82 Fund balance - December 31 $1,310 $4,291 105 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - POLICE COMMUNITY PROGRAMS FUND 270 Statement 18 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Intergovernmental $1,000$1,000$2,718$1,718$1,926 Expenditures: Personal services - 4,80011,773(6,973) - Supplies 3,2009,2004,8694,3311,991 Other services and charges 2,5006,000 5165,4841,948 Total expenditures 5,700 20,000 17,158 2,842 3,939 Revenues over (under) expenditures (4,700)(19,000)(14,440)4,560 (2,013) Other financing sources (uses): Transfers in 9,0009,0009,000 - 9,000 Net change in fund balance $4,300 ($10,000)(5,440)$4,560 6,987 Fund balance - January 1 49,930 42,943 Fund balance - December 31 $44,490 $49,930 2009 106 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - POLICE GRANTS FUND 272 Statement 19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Intergovernmental $19,520 $57,700 Miscellaneous 8,000 - Total revenues 27,520 57,700 Expenditures: Supplies 8,000 - Other services and charges 1,952 - Capital outlay 17,568 57,700 Total expenditures 27,520 57,700 Revenues over expenditures 0 0 Fund balance - January 1 - - Fund balance - December 31 $0 $0 107 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes $573,215$573,215$573,215$ - $551,699 Intergovernmental 155,914155,914123,856(32,058)109,709 Charges for services 10,60010,600 9,130(1,470)9,205 Fines 17,00017,00013,822(3,178)15,534 Investment income: Interest and dividends 6,000 6,000 5,300 (700)7,220 Change in fair value - - (1,500)(1,500)510 Other revenues: Miscellaneous 225 225 - (225)3 Contributions 825 825 - (825) - Total revenues 763,779 763,779 723,823 (39,956)693,880 Expenditures: Personal services 558,125475,948463,42912,519519,059 Supplies 100,90892,12590,477 1,648110,232 Other services and charges 108,42896,20480,16416,04091,562 Total expenditures 767,461 664,277 634,070 30,207 720,853 Revenues over (under) expenditures (3,682)99,502 89,753 (9,749)(26,973) Other financing sources (uses): Transfers in - - - - 15,233 Transfers out (16,386)(16,386)(16,386) - (10,641) Sale of capital assets 25 25 - (25) - Total other financing sources (uses)(16,361)(16,361)(16,386)(25)4,592 Net change in fund balance ($20,043)$83,141 73,367 ($9,774)(22,381) Fund balance - January 1 29,887 52,268 Fund balance - December 31 $103,254 $29,887 2009 108 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - AFTER SCHOOL PROGRAMS FUND 261 Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Intergovernmental $42,712 $41,470 Program revenue 18,719 17,410 Investment income: Interest and dividends 2,800 740 Change in fair value (800)50 Total revenues 63,431 59,670 Expenditures: Personal services 24,841 25,676 Supplies 2,987 2,743 Other services and charges 17,051 16,806 Total expenditures 44,879 45,225 Revenues over expenditures 18,552 14,445 Other financing sources: Transfers in - 62,457 Net change in fund balance 18,552 76,902 Fund balance - January 1 104,380 27,478 Fund balance - December 31 $122,932 $104,380 109 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - C. H. A. S. E. FUND 250 Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 20092008 Revenues: Investment income: Interest and dividends$ - $2,152 Change in fair value - 150 Total revenues 0 2,302 Expenditures - - Revenues over expenditures 0 2,302 Other financing sources (uses): Transfers out - (62,457) Net change in fund balance 0 (60,155) Fund balance - January 1 - 60,155 Fund balance - December 31 $0 $0 110 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS FUND 881 Statement 23 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Investment income: Interest and dividends $2,300 $2,520 Change in fair value (700)180 Other revenue: Contributions 18,300 22,775 Miscellaneous - 973 Total revenues 19,900 26,448 Expenditures: Supplies 9,575 6,694 Other services and charges 4,900 - Capital outlay - - Total expenditures 14,475 6,694 Revenues over expenditures 5,425 19,754 Fund balance - January 1 82,778 63,024 Fund balance - December 31 $88,203 $82,778 111 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 20092008 Revenues: Investment income: Interest and dividends$7,400$9,300 Change in fair value(2,100)660 Contributions 54,419250,770 Total revenues 59,719 260,730 Expenditures: Personal services 1,505 - Supplies 12,088 31,391 Other services and charges 1,090 1,807 Capital outlay 38,503 - Total expenditures 53,186 33,198 Revenues over expenditures 6,533 227,532 Other financing sources (uses): Transfers out - (23,000) Net change in fund balance 6,533 204,532 Fund balance - January 1 266,265 61,733 Fund balance - December 31 $272,798 $266,265 112 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - FLEX BENEFIT FUND 887 Statement 25 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Other revenues: Miscellanous $ - $558 Expenditures - - Revenues over expenditures 0 558 Other financing sources (uses): Transfers out - (40,236) Net change in fund balance 0 (39,678) Fund balance - January 1 - 39,678 Fund balance - December 31 $0 $0 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Fees/program revenue $20,295$102,450 Rents 62,701 53,766 Investment income: Interest and dividends 5,000 5,860 Change in fair value (1,400)420 Total revenues 86,596162,496 Expenditures: Other services and charges 65,051 - Revenues over expenditures 21,545162,496 Other financing sources (uses): Transfers out - (206,700) Net change in fund balance 21,545(44,204) Fund balance - January 1 157,844202,048 Fund balance - December 31 $179,389$157,844 114 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT FUND 201 Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Licenses and permits $234,260$234,260$256,032$21,772$287,726 Investment income: Interest and dividends - - 2,7002,700390 Change in fair value - - (800)(800)30 Miscellaneous 35,78235,782 - (35,782) - Total revenues 270,042 270,042 257,932 (12,110)288,146 Expenditures: Personal services 508,404487,836433,10154,735450,622 Supplies 11,00611,0063,2537,7535,796 Other services and charges 81,51251,51229,18122,33183,192 Total expenditures 600,922 550,354 465,535 84,819 539,610 Revenues over (under) expenditures (330,880)(280,312)(207,603)72,709 (251,464) Other financing sources (uses): Transfers in 347,561347,561347,573 12274,863 Transfers out (24,387)(24,387)(24,387) - (22,267) Total other financing sources (uses)323,174 323,174 323,186 12 252,596 Net change in fund balance ($7,706)$42,862 115,583 $72,721 1,132 Fund balance - January 1 46,784 45,652 Fund balance - December 31 $162,367 $46,784 2009 115 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ANOKA COUNTY COMM DEV PROGRAMS FUND 202 Statement 28 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues: Intergovernmental $28,275 $101,960 Investment income: Interest and dividends 100 - Total revenues 28,375 101,960 Expenditures: Other services and charges 4,668 99,600 Capital outlay - 2,360 Total expenditures 4,668 101,960 Revenues over expenditures 23,707 0 Other financing sources (uses): Transfers out - (365,583) Sale of capital assets - 383,503 Total other financing sources (uses)0 17,920 Net change in fund balance 23,707 17,920 Fund balance (deficit) - January 1 6,048 (11,872) Fund balance - December 31 $29,755 $6,048 116 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 29 COMBINING BALANCE SHEET December 31, 2009 EDA Administration Fund 204 EDA Business Revolving Loan Fund 299 Total Econ. Dev. Authority Special Revenue Funds Assets Cash and investments $108,853 $ - $108,853 Receivables: Taxes 18,331 - 18,331 Interest 100 - 100 Loans 43,600 - 43,600 Interfund receivable 25,417 - 25,417 Real estate held for resale 410,973 - 410,973 Total assets $607,274 $0 $607,274 Liabilities and Fund Balance Liabilities: Accounts payable $70 $ - $70 Interfund payable 400,000 - 400,000 Deferred revenue 58,565 - 58,565 Total liabilities 458,635 0 458,635 Fund balance: Reserved: For real estate held for resale 410,973 - 410,973 Unreserved: Undesignated (262,334) - (262,334) Total fund balance 148,639 0 148,639 Total liabilities and fund balance $607,274 $0 $607,274 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 30 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 EDA Administration Fund 204 EDA Business Revolving Loan Fund 299 Total Econ. Dev. Authority Special Revenue Funds Revenues: Taxes $322,844 $ - $322,844 Intergovernmental 16,305 - 16,305 Investment income: Interest and dividends 1,432 - 1,432 Change in fair value (200) - (200) Total revenues 340,381 0 340,381 Expenditures: Other services and charges 70 - 70 Capital outlay 20,207 - 20,207 Total expenditures 20,277 0 20,277 Revenues over expenditures 320,104 0 320,104 Other financing sources (uses): Transfers out (347,573) - (347,573) Net change in fund balance (27,469)0 (27,469) Fund balance - January 1 176,108 - 176,108 Fund balance - December 31 $148,639 $0 $148,639 118 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 31 BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204 (COMPONENT UNIT) For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes $347,561$331,256$322,844($8,412)$257,348 Intergovernmental: Market value homestead credit - 16,30516,305 - 12,892 Investment income: Interest and dividends - - 1,432 1,432 2,008 Change in fair value - - (200)(200) - Total revenues 347,561347,561340,381(7,180)272,248 Expenditures: Other services and charges - - 70 (70)629 Capital outlay - - 20,207(20,207)36,076 Total expenditures 0 020,277(20,277)36,705 Revenues over (under) expenditures 347,561347,561320,104(27,457)235,543 Other financing sources (uses): Transfers in - - - - 579,059 Transfers out (347,561)(347,561)(347,573)(12)(274,863) Total other financing sources (uses)(347,561)(347,561)(347,573)(12)304,196 Net change in fund balance $0 $0(27,469)($27,469)539,739 Fund balance (deficit) - January 1 176,108 (363,631) Fund balance - December 31 $148,639 $176,108 2009 119 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ECONOMIC DEVELOPMENT AUTHORITY (COMPONENT UNIT) Statement 32 BUSINESS REVOLVING LOAN FUND 299 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 20092008 Revenues: Investment income: Interest and dividends$ - $2,420 Change in fair value - 170 Total revenues 0 2,590 Expenditures - - Revenues over expenditures 0 2,590 Other financing sources (uses): Transfers out - (467,447) Net change in fund balance 0 (464,857) Fund balance - January 1 - 464,857 Fund balance - December 31 $0 $0 120 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 33 COMBINING BALANCE SHEET December 31, 2009 ParkviewParkview Total VillaVillaRentalHousing and NorthSouthHousingRedevelopment Fund 203Fund 213Fund 235Authority Assets Cash and investments $951,824$537,855$ - $1,489,679 Receivables: Accounts 1,228 1 - 1,229 Interest 2,500 1,500 - 4,000 Interfund receivable 1,460 - - 1,460 Due from other governmental units 20,012 - - 20,012 Total assets $977,024 $539,356 $0 $1,516,380 Liabilities and Fund Balance Liabilities: Accounts payable $30,176$10,942$ - $41,118 Due to other governmental units 20,349 12,380 - 32,729 Interfund payable 45,424 24,318 - 69,742 Deferred revenue 4,369 2,816 - 7,185 Deposits 15,014 8,193 - 23,207 Total liabilities 115,332 58,649 0173,981 Fund balance: Unreserved: Designated for maintenance 861,692480,707 - 1,342,399 Total fund balance 861,692480,707 01,342,399 Total liabilities and fund balance $977,024 $539,356 $0 $1,516,380 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 34 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 ParkviewParkview Total Villa Villa RentalHousing and North SouthHousingRedevelopment Fund 203Fund 213Fund 235Authority Revenues: Intergovernmental $275,002$ - $ - $275,002 Rents 316,869296,727 - 613,596 Investment income: Interest and dividends 17,70010,500 - 28,200 Change in fair value (5,100)(3,000) - (8,100) Other revenues: Miscellaneous 8,902 3,962 - 12,864 Total revenues 613,373308,189 0921,562 Expenditures: Personal services 23,76012,020 - 35,780 Supplies 24,289 7,248 - 31,537 Other services and charges 387,951187,067 - 575,018 Capital outlay 63,81932,242 - 96,061 Total expenditures 499,819238,577 0738,396 Revenues over expenditures 113,55469,612 0183,166 Fund balance - January 1 748,138411,095 - 1,159,233 Fund balance - December 31 $861,692 $480,707 $0 $1,342,399 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY- Statement 35 PARKVIEW VILLA NORTH FUND 203 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Intergovernmental revenue $270,000$270,000$275,002$5,002$256,486 Rents 301,688301,688316,86915,181316,990 Investment income: Interest and dividends 5,0005,00017,70012,70020,340 Change in fair value - - (5,100)(5,100)1,450 Other revenues 4,3194,3198,9024,58310,919 Total revenues 581,007581,007613,37332,366606,185 Expenditures: Personal services 23,76023,76023,760 - 23,038 Supplies 22,73522,73524,289(1,554)21,860 Other services and charges 426,571426,571387,95138,620389,980 Capital outlay 170,628170,62863,819106,80972,675 Total expenditures 643,694643,694499,819143,875507,553 Revenues over (under) expenditures ($62,687)($62,687)113,554$176,24198,632 Fund balance - January 1 748,138 649,506 Fund balance - December 31 $861,692 $748,138 2009 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY - Statement 36 PARKVIEW VILLA SOUTH FUND 213 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2009 With Comparative Actual Amounts For The Year Ended December 31, 2008 Variance with Budgeted Amounts Final Budget-2008 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Rents $310,987$310,987$296,727($14,260)$296,120 Investment income: Interest and dividends 2,500 2,50010,500 8,000 8,960 Change in fair value - - (3,000)(3,000)640 Other 2,000 2,000 3,962 1,962 5,562 Total revenues 315,487315,487308,189(7,298)311,282 Expenditures: Personal services 12,02012,02012,020 - 12,230 Supplies 10,87010,870 7,248 3,62210,772 Other services and charges 182,560182,560187,067(4,507)178,013 Capital outlay 67,00067,00032,24234,758 - Total expenditures 272,450272,450238,57733,873201,015 Revenues over expenditures $43,037$43,03769,612$26,575110,267 Fund balance - January 1 411,095 300,828 Fund balance - December 31 $480,707 $411,095 2009 124 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY Statement 37 RENTAL HOUSING FUND 235 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2009 With Comparative Amounts For The Year Ended December 31, 2008 2009 2008 Revenues $ - $ - Expenditures - - Revenues over expenditures 0 0 Other financing sources (uses): Transfers out - (40,688) Net change in fund balance 0 (40,688) Fund balance - January 1 - 40,688 Fund balance - December 31 $0 $0 125 - This page intentionally left blank - 126 NONMAJOR DEBT SERVICE FUNDS The City of Columbia Heights had the following kinds of Nonmajor Debt Service Funds during the year: Bond Debt Service Funds – are separate funds used to account for the revenues and expenditures of each separate bond issue. Tax Increment Financing Funds – are separate funds used to account for the revenues and expenditures of each separate Tax Increment Financing District. 127 - This page intentionally left blank - 128 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 38 NONMAJOR DEBT SERVICE FUNDS Page 1 of 2 December 31, 2009 G.O. Improvement Bonds 1999A Fund 387 G.O. Improvement/ Revenue Bonds 2003A Fund 388 G.O. Tax Increment Refunds Bonds 2004A Fund 350 G.O. Improvement/ Revenue Bonds 2006A Fund 340 G.O. Street Rehabilitation Bonds 2007 Fund 341 Assets Cash and investments $272,096$ - $ - $700,154$135,379 Receivables: Taxes - - - - 1,630 Interest 1,000 - - 1,300 100 Land held for resale - - - - - Total assets $273,096 $0 $0$701,454$137,109 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $ - $ - $ - Duetoothergovernmentalunits -----Due to other governmental units - - - - - Deferred revenue: Interfund payable - 24,055 - - - Property taxes - delinquent - - - - - Total liabilities 024,055000 Fund balance (deficit): Reserved for real estate held for resale - - - - - Designated for debt service 273,096 - - 701,454137,109 Undesignated - (24,055) - - - Total fund balance (deficit)273,096(24,055)0701,454137,109 Total liabilities and fund balance $273,096 $0 $0$701,454$137,109 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2009 G.O. Public Safety Center Bonds 2008B Fund 343 G.O. Public Facilities Bonds 2009A Fund 344 Tax Increment Bonds Fund 376 Sheffield TIF Redevelopment Fund 377 TIF Multi-Use Redevelopment Plan Fund 385 Assets Cash and investments $163,155$148,878$517,489$42,783$66,744 Receivables: Taxes 2,610 - 2,043 5,985 43 Interest 300 100500 - 200 Land held for resale - - 340,231 - - Total assets $166,065$148,978$860,263$48,768$66,987 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $12,276$ - $12,741 Duetoothergovernmentalunits --61,247 -- EDA Component Unit Due to other governmental units - - 61,247 - - Deferred revenue: Interfund payable - - - 186,648 25,417 Property taxes - delinquent - - - 5,267 - Total liabilities 0 073,523191,915 38,158 Fund balance (deficit): Reserved for real estate held for resale - - 340,231 - - Designated for debt service 166,065148,978446,509 - 28,829 Undesignated - - - (143,147) - Total fund balance (deficit)166,065148,978786,740(143,147)28,829 Total liabilities and fund balance$166,065$148,978$860,263$48,768$66,987 130 Statement 38 Page 2 of 2 TIF District #2 Fund 386 TIF Scattered Site Fund 370 and 379 TIF Transition Block Fund 389 TIF 4747 Central Avenue Fund 371 TIF Huset Park Area Fund 372 EDA TIF Revenue Bonds 2007 Fund 373 Total Nonmajor Debt Service Funds $ - $4,939$60,772$828,550$110,486$258,072$3,309,497 - - - 3,999 14,155 - 30,465 - - 200 2,800 100 800 7,400 - - - 405,421 - - 745,652 $0 $4,939$60,972$1,240,770 $124,741$258,872$4,093,014 $ - $ - $23,595 $208 25,409$ - $74,229 -4,939 ----66,186 Economic Development Authority Component Unit - 4,939 - - - - 66,186 - - - - - - 236,120 - - - 1,952 11,088 - 18,307 0 4,939 23,595 2,160 36,497 0394,842 - - - 405,421 - - 745,652 - - 37,377833,189 88,244258,8723,119,722 - - - - - - (167,202) 0 0 37,3771,238,610 88,244258,8723,698,172 $0 $4,939$60,972$1,240,770 $124,741$258,872$4,093,014 131 - This page intentionally left blank - 132 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 39 CHANGES IN FUND BALANCE Page 1 of 2 NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2009 G.O. Improvement Bonds 1999A Fund 387 G.O. Improvement/ Revenue Bonds 2003A Fund 388 G.O. Tax Increment Refunds Bonds 2004A Fund 350 G.O. Improvement/ Revenue Bonds 2006A Fund 340 G.O. Street Rehabilitation Bonds 2007 Fund 341 Revenues: Taxes $ - $ - $ - $ - $163,284 Tax increment collections - - - - - Intergovernmental - - - - - Investment income: Interest and dividends 6,800 - 56 9,300 900 Change in fair value (1,900) - - (2,700)(200) Total revenues 4,900 0 56 6,600163,984 Expenditures: Current: Other services and charges - - - - - Debt service: Principal retirement 85,00094,837150,001380,13665,000 Interest and fiscal charges 5,03230,559 4,12594,01041,100Interest and fiscal charges 5,032 30,559 4,125 94,010 41,100 Issuance costs - - - - - Developer incentives - - - - - Total expenditures 90,032125,396154,126474,146106,100 Revenues over (under) expenditures (85,132)(125,396)(154,070)(467,546)57,884 Other financing sources (uses): Transfers in 13,60277,199 - 405,748 - Transfers out - - (16,875) - - Bonds issued - - - - - Total other financing sources (uses)13,60277,199(16,875)405,748 0 Net change in fund balance (71,530)(48,197)(170,945)(61,798)57,884 Fund balance (deficit) - January 1 344,62624,142170,945763,25279,225 Fund balance (deficit) - December 31 $273,096($24,055)$0$701,454$137,109 133 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2009 G.O. Public Safety Center Bonds 2008B Fund 343 G.O. Public Facilities Bonds 2009A Fund 344 Tax Increment Bonds Fund 376 Sheffield TIF Redevelopment Fund 377 TIF Multi-Use Redevelopment Plan Fund 385 Revenues: Taxes $280,214$ - $ - $ - $ - Tax increment collections - - 611,612 82,188 34,596 Intergovernmental - - 85,225 5,167 310 Investment income: Interest and dividends 2,1001,0004,218 300 1,400 Change in fair value (600)(300)(1,100)(100)(400) Total revenues 281,714 700699,955 87,555 35,906 Expenditures: Current: Other services and charges - - 436,173 1,223 2,102 Debt service: Principal retirement - - - - - Interest and fiscal charges 434,933 - - 12,059 832 EDA Component Unit Interest and fiscal charges 434,933 12,059 832 Issuance costs - - - - - Developer incentives - - - - 16,927 Total expenditures 434,933 0436,173 13,282 19,861 Revenues over (under) expenditures (153,219)700263,782 74,273 16,045 Other financing sources (uses): Transfers in - 148,27816,875 - - Transfers out - - - - - Bonds issued - - - - - Total other financing sources (uses)0148,27816,875 0 0 Net change in fund balance (153,219)148,978280,657 74,273 16,045 Fund balance (deficit) - January 1 319,284 - 506,083(217,420)12,784 Fund balance (deficit) - December 31 $166,065$148,978$786,740($143,147)$28,829 134 Statement 39 Page 2 of 2 TIF District #2 Fund 386 TIF Scattered Site Fund 370 and 379 TIF Transition Block Fund 389 TIF 4747 Central Avenue Fund 371 TIF Huset Park Area Fund 372 EDA TIF Revenue Bonds 2007 Fund 373 Total Nonmajor Debt Service Funds $ - $ - $ - $ - $ - $ - $443,498 - - 52,558211,480295,741 - 1,288,175 - 4,939 - 2,970 19,554 - 118,165 - - 1,100 19,700 400 5,800 53,074 - - (300)(5,600)(100)(1,700)(15,000) 0 4,939 53,358228,550315,595 4,1001,887,912 - 220,194 2,102 22,259 17,990 - 702,043 - - - - - 9,000783,974 - - - - 1,693153,113777,456 Economic Development Authority Component Unit 1,693 153,113 777,456 - - - 23,620 - - 23,620 - - 47,188 - 61,742 - 125,857 0220,194 49,290 45,879 81,425162,1132,412,950 0(215,255)4,068182,671234,170(158,013)(525,038) - - - - - 112,100773,802 - - - - (112,100) - (128,975) - - - 580,000 - - 580,000 0 0 0580,000(112,100)112,1001,224,827 0(215,255)4,068762,671122,070(45,913)699,789 - 215,255 33,309475,939(33,826)304,7852,998,383 $0 $0$37,377$1,238,610$88,244$258,872$3,698,172 135 - This page intentionally left blank - 136 NONMAJOR CAPITAL PROJECT FUNDS The City of Columbia Heights had the following Nonmajor Capital Project Funds during the year: Downtown Parking Maintenance Fund 405 – used for maintenance of a parking ramp west of Central Avenue. 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. Housing Maintenance Fund 408 – established to account for activities to maintain the quality and quantity of housing in the City. Capital Sheffield Redevelopment Fund 410 - used to fund redevelopment of the area of the City identified as the Sheffield Neighborhood. Capital Improvement Development Fund 420 - used to account for a number of redevelopment projects and tentative redevelopment projects throughout the City. Capital Improvement PVVS Fund 414 – used to account for improvements to the Parkview Villa South building. Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This includes park dedication fees when available, the use of which is limited by state statute to park improvements. Capital Improvement Fund 401 – used to account for capital projects for which funding is provided by a number of internal and external sources. Infrastructure Replacement Fund 430 – used to fund replacement of City infrastructure. Capital Equipment Fire Fund 439 – used to fund replacement of fire department capital assets. This fund is limited by state statute to fire department expenditures. The original source of the asset in this fund was excess funding in a fire pension plan. Capital Equipment Cable TV Fund 440 – used to fund replacement of cable television capital assets. Capital Building Library Fund 450 – used to fund replacement of the library building. 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2009 Downtown Parking Maintenance Fund 405 EDA (Component Unit) Housing Maintenance Fund 408 Capital Sheffield Redevelopment Fund 410 Capital Improvement Development Fund 420 Assets Cash and investments $147,374$139,302$377,639$825,354 Receivables: Accounts - - - 52,371 Interest 600 700 1,100 3,200 Due from other governmental units - - - 5,746 Interfund receivable - - - 400,000 Real estate held for ressale - - 350,496 54,203 Total assets $147,974$140,002$729,235$1,340,874 Liabilities and Fund Balance Liabilities: Accounts payable $ - $ - $3 $205 Contracts payable - retained percentage - - - 677 Deposits - - - 2,352 Total liabilities 0 0 3 3,234 Fund balance: Reserved for: Real estate held for resale - - 350,496 54,203 Unreserved: Designated for capital expenditures 147,974 140,002 378,7361,283,437 Total fund balance 147,974 140,002 729,2321,337,640 Total liabilities and fund balance $147,974$140,002$729,235$1,340,874 138 Statement 40 Capital Improvement PVVS Fund 414 Capital Improvement Parks Fund 412 Capital Improvement Fund 401 Infrastructure Replacement Fund 430 Capital Equipment Fire Fund 439 Capital Equipment Cable TV Fund 440 Capital Building Library Fund 450 Total Nonmajor Capital Project Funds $30,355$167,592$82,856$800,368$188,540$86,451$200,000$3,045,831 - - - - - - - 52,371 100 600 - 300700300 - 7,600 - - - - - - - 5,746 - - - - - - - 400,000 - - - - - - - 404,699 $30,455$168,192$82,856$800,668$189,240$86,751$200,000$3,916,247 $ - $142$ - $ - $ - $ - $ - $350 - 1,3812,366 - - - - 4,424 - - - - - - - 2,352 01,5232,366 0 0 0 07,126 - - - - - - - 404,699 30,455166,66980,490800,668189,24086,751200,0003,504,422 30,455166,66980,490800,668189,24086,751200,0003,909,121 $30,455$168,192$82,856$800,668$189,240$86,751$200,000$3,916,247 139 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2009 Downtown Parking Maintenance Fund 405 EDA (Component Unit) Housing Maintenance Fund 408 Capital Sheffield Redevelopment Fund 410 Capital Improvement Development Fund 420 Revenues: Intergovernmental $ - $ - $ - $4,325 Charges for services - - - 53,813 Investment income: Interest and dividends 4,000 4,900 8,100 22,400 Change in fair value (1,100)(1,400)(2,300)(6,400) Miscellaneous - - - - Total revenues 2,900 3,500 5,800 74,138 Expenditures: Current: Personal services - - - - Other services and charges 13,74795,000 - 59,775 Capital outlay - - - 100 Total expenditures 13,74795,000 0 59,875 Revenue over (under) expenditures (10,847)(91,500)5,800 14,263 Other financing sources (uses): Transfers in - - - - Transfers out - - - - Total other financing sources (uses)0 0 0 0 Net change in fund balance (10,847)(91,500)5,800 14,263 Fund balance - January 1 158,821231,502 723,4321,323,377 Fund balance - December 31 $147,974$140,002$729,232$1,337,640 140 Statement 41 Capital Improvement PVVS Fund 414 Capital Improvement Parks Fund 412 Capital Improvement Fund 401 Infrastructure Replacement Fund 430 Capital Equipment Fire Fund 439 Capital Equipment Cable TV Fund 440 Capital Building Library Fund 450 Total Nonmajor Capital Project Funds $ - $ - $ - $ - $ - $ - $ - $4,325 - 1,500 130 - - - - 55,443 8004,400 - 2,1004,9002,300 - 53,900 (200)(1,300) - (600)(1,400)(600) - (15,300) - - 75 - - - - 75 6004,600 205 1,5003,5001,700 098,443 - 511 - - - - - 511 - 5,958 140117,211 - - - 291,831 - 131,464 - - - - - 131,564 0137,933 140117,211 0 0 0423,906 600(133,333)65(115,711)3,5001,700 0(325,463) - 54,041 - 889,920 - - - 943,961 - - - - - - - - 054,041 0889,920 0 0 0943,961 600(79,292)65774,2093,5001,700 0618,498 29,855245,96180,42526,459185,74085,051200,0003,290,623 $30,455$166,669$80,490$800,668$189,240$86,751$200,000$3,909,121 141 - This page intentionally left blank - 142 ENTERPRISE FUNDS The authority for these types of funds is derived from Section 69(b) of the City Charter which allows for Utility or other Public Service Enterprise Funds. The Enterprise Funds are members of the Proprietary Fund Type category, and, as such, are accounted for on the accrual basis of accounting. Revenues in the Enterprise Funds are recognized when they are earned and expenses are recognized when they are incurred. The Enterprise Funds are used to account for operations that are financed and/or operated in a manner similar to private business enterprises or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Water Utility Fund – used to account for revenues and expenses associated with services to area residents. Sewer Utility Fund – used to account for revenues and expenses associated with sewer disposal within the City. Refuse Utility Fund – used to account for revenues and expenses associated with organized collection of refuse and recycling in the City. Storm Sewer Utility Fund – used to account for revenues and expenses associated with storm water disposal. Liquor Fund – used to account for revenues and expenses associated with the operation of three off-sale liquor stores. 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 42 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals for December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Assets 20092008 Current assets: Cash and cash equivalents $167,684$108,183$ - $318,525$ - $594,392$291,574 Receivables: Accounts (net of allowance for uncollectables)495,820 - - - - 495,820513,921 Interest 4001,500 - 600 - 2,5009,301 Interfund receivable - 319,885 - - (319,885) - 3,216 Inventory - at cost 2,695 - - - - 2,6951,828 Total current assets 666,599429,568 0319,125(319,885)1,095,407819,840 Noncurrent assets: Capital assets: Land 45,223 - - - - 45,22345,223 Buildings 559,826 - - - - 559,826559,826 Equipment 456,629 - - - - 456,629456,629 Infrastructure 7,420,389 - - - - 7,420,3897,162,317 Construction in process - - 103,820 - - 103,820 - Total capital assets 8,482,067 0103,820 0 08,585,8878,223,995 Less: accumulated depreciation (3,630,125) - - - - (3,630,125)(3,416,640) Total capital assets (net of accumulated depreciation)4,851,942 0103,820 0 04,955,7624,807,355 Total noncurrent assets 4,851,942 0103,820 0 04,955,7624,807,355 Total assets 5,518,541429,568103,820319,125(319,885)6,051,1695,627,195 Totals Liabilities Current liabilities: Accounts payable 8,281 - - - - 8,28127,007 Accrued salaries and withholdings payable5,114 - - - - 5,11414,963 Due to other governmental units 73,083 - 147,171 - - 220,254163,587 Interfund payable - - 319,885 - (319,885) - 184,471 Accrued interest payable - - - 31,660 - 31,66031,185 Deposits 1,000 - - - - 1,0001,000 Compensated absences payable - current 1,077 - - - - 1,0771,412 Bonds payable - current - - - 269,029 - 269,029240,103 Total current liabilities 88,555 0467,056300,689(319,885)536,415663,728 Noncurrent liabilities: Compensated absences payable - noncurrent20,338 - - - - 20,33820,897 Bonds payable - noncurrent - - - 1,770,573 - 1,770,5731,714,626 Total noncurrent liabilities 20,338 0 01,770,573 01,790,9111,735,523 Total liabilities 108,893 0467,0562,071,262(319,885)2,327,3262,399,251 Net Assets Invested in capital assets, net of related debt4,851,942 - 103,820(1,976,510) - 2,979,2522,852,626 Restricted for debt service - 101,831 - 224,373 - 326,204295,164 Unrestricted 557,706327,737(467,056) - - 418,38780,154 Total net assets $5,409,648 $429,568 ($363,236)($1,752,137)$0 $3,723,843 $3,227,944 144 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 43 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Operating revenues:20092008 Charges for services: Customer services $176,910$ - $ - $ - $ - $176,910$174,124 Penalties 50,801 - - - - 50,80151,509 Charges for sales: Water 2,157,002 - - - - 2,157,0022,101,966 Meter 17,479 - - 68,071 - 85,55082,356 Total operating revenues 2,402,192 0 068,071 02,470,2632,409,955 Operating expenses: Cost of sales 992,621 - - - - 992,621963,455 Distribution 559,936 - 34,921 - - 594,857842,779 Administration 19,465 - - - - 19,46519,404 Depreciation 213,484 - - - - 213,484211,492 Total operating expenses 1,785,506 0 34,921 0 0 1,820,427 2,037,130 Net income (loss) from operations 616,686 0 (34,921)68,071 0 649,836 372,825 Nonoperating revenues (expenses): Investment income: Interest and dividends 3,00010,900 - 4,300 - 18,20040,290 Change in fair value (800)(3,100) - (1,200) - (5,100)2,860 Miscellaneous revenues 994 - - - - 9944,361 Interest and fiscal charges - - - (71,532) - (71,532)(76,301) Totals Total nonoperating revenues (expenses)3,194 7,800 0 (68,432)0 (57,438)(28,790) Net income (loss) before transfers 619,880 7,800 (34,921)(361)0 592,398 344,035 Transfers in 282,29625,000359,912211,200(854,184)24,224 - Transfers out (391,845) - (258,072)(324,990)854,184(120,723)(114,610) Total transfers (109,549)25,000 101,840 (113,790)0 (96,499)(114,610) Change in net assets 510,331 32,800 66,919 (114,151)0 495,899 229,425 Total net assets - January 1 4,899,317396,768(430,155)(1,637,986) - 3,227,944 2,998,519 Total net assets - December 31 $5,409,648$429,568($363,236)($1,752,137)$0$3,723,843$3,227,944 145 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 44 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 2009 2008 Cash flows from operating activities: Cash received from customers $2,489,358 $2,378,142 Cash paid to suppliers for goods and services (1,417,241)(1,501,263) Cash payments to employees for services (310,542)(355,714) Net cash flows from operating activities 761,575 521,165 Cash flows from noncapital financing activities: Transfers in 24,224 - Transfers out (120,723)(114,610) Interfund receivable repaid by (advanced to) other funds 3,216 515 Interfund payable (repaid to) advanced by other funds (184,471)(322,067) Net cash flows from noncapital financing activities (277,754)(436,162) Cash flows from capital and related financing activities: Acquisition of capital assets (214,721) - Bonds issued 325,000 (230,037) Principal payments - bonds (240,127)(230,037) Interest and fiscal charges (71,056)(79,690) Net cash flows from capital and related financing activities (200,904)(309,727) Cash flows from investing activities: Investment income: Interest and dividends 25,001 36,859 Change in fair value (5,100)2,860g(,), Net cash flows from investing activities 19,901 39,719 Net increase (decrease) in cash and cash equivalents 302,818 (185,005) Cash and cash equivalents - January 1 291,574 476,579 Cash and cash equivalents - December 31 $594,392 $291,574 Reconciliation of operating income to net cash flows from operating activities: Operating income $649,836 $372,825 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 213,484 211,492 Miscellaneous revenues 994 4,361 Changes in assets and liabilities: (Increase) decrease in accounts receivable 18,101 (36,174) (Increase) decrease in inventory, at cost (867)743 Increase (decrease) in accounts payable (18,726)(44,361) Increase (decrease) in accrued salaries and withholdings payable (9,849)1,495 Increase (decrease) in due to other governmental units 56,667 7,934 Adjustment for nonoperating portion (147,171) - Increase (decrease) in compensated absences payable (894)2,850 Total adjustments 111,739 148,340 Net cash flows from operating activities $761,575 $521,165 Noncash capital and related financing activities: Capital assets purchased/constructed on account $147,171 $ - 146 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 45 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals for December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Assets 20092008 Current assets: Cash and cash equivalents $911,879$379,388$788,581$4,736$2,084,584$1,717,816 Receivables: Accounts (net of allowance for uncollectibles)329,087 - - - 329,087324,364 Interest 4,0001,4002,000 - 7,40015,981 Due from other governmental units - current28,575 - 54,774 - 83,34954,774 Interfund receivables - - 186,648 - 186,648484,285 Prepayments 72,218 - - - 72,21874,717 Total current assets 1,345,759380,7881,032,0034,7362,763,2862,671,937 Noncurrent assets: Due from other governmental units - noncurrent - - - - - 56,051 Capital assets: Land 36,586 - - - 36,58636,586 Buildings100,426 - - - 100,426100,426 Equipment840,942 - - - 840,942840,942 Infrastructure5,011,320 - - - 5,011,3205,011,320 Total capital assets5,989,2740005,989,2745,989,274 Less: accumulated depreciation (3,798,383) - - - (3,798,383)(3,614,985) Totals Net capital assets 2,190,891 0 0 02,190,8912,374,289 Total noncurrent assets 2,190,891 0 0 0 2,190,891 2,430,340 Total assets 3,536,650380,7881,032,0034,7364,954,1775,102,277 Liabilities Current liabilities: Accounts payable 3,776 - 112,195 - 115,9712,180 Accrued salaries and withholdings payable 2,104 - 892 - 2,99613,963 Contracts payable - retained percentage 66,650 - - - 66,650 - Accrued interest payable - - - 83 83161 Compensated absences payable - current 1,155 - - - 1,1552,091 Bonds payable - current - - - 4,6534,6534,455 Total current liabilities73,6850113,0874,736191,50822,850 Noncurrent liabilities: Compensated absences payable - noncurrent21,812 - - - 21,81230,938 Bonds payable - noncurrent - - - - - 4,667 Total noncurrent liabilities21,81200021,81235,605 Total liabilities 95,497 0113,0874,736213,32058,455 Net Assets Invested in capital assets, net of related debt2,190,891 - - (4,653)2,186,2382,365,167 Restricted for debt service - - 1504,6534,8034,825 Unrestricted 1,250,262380,788918,766 - 2,549,8162,673,830 Total net assets $3,441,153$380,788$918,916 $0$4,740,857$5,043,822 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 46 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Interfund Eliminations Operating revenues:20092008 Charges for services: Sewer service charges$1,464,582$ - $ - $ - $ - $1,464,582$1,425,306 Penalties (226) - - - - (226)12,902 Total operating revenues1,464,356 0 0 0 01,464,3561,438,208 Operating expenses: Disposal 896,603 - - - - 896,603840,904 Collection 327,957 - 271,922 - - 599,879494,127 Administration 19,364 - - - - 19,36419,535 Depreciation 183,511 - - - - 183,511179,130 Total operating expenses1,427,435 0271,922 0 01,699,3571,533,696 Net income (loss) from operations36,921 0(271,922)0 0(235,001)(95,488) Nonoperating revenues (expenses) Investment income: Interest and dividends 30,6429,70026,559 - - 66,90188,481 Change in fair value (8,100)(2,800)(4,100) - - (15,000)4,930 Intergovernmental - - - - - - 56,492 Miscellaneous revenues 1,140 - - - - 1,1401,957 Interest and fiscal charges - - - (283) - (283)(546) Total nonoperating revenues (expenses)23,682 6,900 22,459 (283)0 52,758 151,314 Net income (loss) before transfers60,603 6,900 (249,463)(283)0 (182,243)55,826 Transfers in - 25,000271,9224,630(301,552) - - Transfers out (422,274) - - - 301,552(120,722)(114,609) Total transfers (422,274)25,000 271,922 4,630 0 (120,722)(114,609) Change in net assets (361,671)31,900 22,459 4,347 0 (302,965)(58,783) Net assets - January 1 3,802,824348,888896,457(4,347) - 5,043,8225,102,605 Net assets - December 31 $3,441,153$380,788$918,916$0 $0$4,740,857$5,043,822 Totals 148 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 47 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from customers $1,488,249 $1,427,582 Cash paid to suppliers for goods and services (1,085,850)(1,119,594) Cash payments to employees for services (268,085)(256,711) Net cash flows from operating activities 134,314 51,277 Cash flows from noncapital financing activities: Transfers out (120,722)(114,609) Intergovernmental - 35,723 Interfund receivable repaid by (advanced to) other funds 297,637 358,583 Net cash flows from noncapital financing activities 176,915 279,697 Cash flows from capital and related financing activities: Acquisition of capital assets - (133,327) Principal payments - bonds (4,469)(4,356) Interest and fiscal charges (361)(620) Net cash flows from capital and related financing activities (4,830)(138,303) Cash flows from investing activities: Investment income: Interest and dividends 75,369 89,650 Change in fair value (15,000)4,930 Netcashflowsfrominvestingactivities 60,369 94,580Net cash flows from investing activities 60,369 94,580 Net increase (decrease) in cash and cash equivalents 366,768 287,251 Cash and cash equivalents - January 1 1,717,816 1,430,565 Cash and cash equivalents - December 31 $2,084,584 $1,717,816 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)($235,001)($95,488) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 183,511 179,130 Miscellaneous revenues 1,140 1,957 Changes in assets and liabilities: (Increase) decrease in accounts receivable (4,723)(12,583) (Increase) decrease in due from other governmental units 27,476 - (Increase) decrease in prepayments 2,499 (4,642) Increase (decrease) in accounts payable 113,791 (11,026) Increase (decrease) in accrued salaries and withholdings payable (10,967)1,780 Increase (decrease) in contracts payable -retained percentage 66,650 (11,995) Increase (decrease) compensated absences payable (10,062)4,144 Total adjustments 369,315 146,765 Net cash flows from operating activities $134,314 $51,277 149 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 48 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals for December 31, 2008 20092008 Assets Current assets: Cash and cash equivalents$473,947$364,161 Receivables: Accounts (net of allowance for uncollectibles)330,782320,222 Interest 1,900 3,000 Due from other governmental units 32,171 50,572 Interfund receivable - 1,138 Total current assets 838,800 739,093 Noncurrent assets: Capital assets: Buildings 6,000 6,000 Equipment 108,690 108,690 Total capital assets 114,690 114,690 Less: accumulated depreciation (112,890)(107,975) Total capital assets (net of accumulated depreciation)1,800 6,715 Total noncurrent assets 1,800 6,715 Total assets 840,600 745,808Total assets 840,600 745,808 Liabilities Current liabilities: Accounts payable 103,934 89,675 Accrued salaries and withholdings payable 1,156 1,647 Compensated absences payable - current 220 - Total current liabilities 105,310 91,322 Noncurrent liabilities: Compensated absences payable - noncurrent 4,160 - Total liabilities 109,470 91,322 Net Assets Invested in capital assets, net of related debt 1,800 6,715 Unrestricted 729,330 647,771 Total net assets $731,130 $654,486 150 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 49 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 20092008 Operating revenues: Refuse service charges$1,383,979$1,341,014 Operating expenses: Collection and disposal1,156,5011,077,531 Administration 56,235 24,574 Recycling 29,744 32,832 Hazardous waste 1,812 75 Depreciation 4,915 11,169 Total operating expenses 1,249,207 1,146,181 Net income from operations 134,772 194,833 Nonoperating revenues: Investment income: Interest and dividends 13,800 13,010 Change in fair value (3,900)930 Intergovernmental 50,105 50,572 Total nonoperating revenues 60,005 64,512 Net income before transfers 194,777 259,345 Transfers out (118,133)(131,114) Change in net assets 76,644 128,231 Total net assets - January 1 654,486 526,255 Total net assets - December 31 $731,130 $654,486 151 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 50 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from customers $1,373,419 $1,333,832 Cash paid to suppliers for goods and services (1,170,256)(1,105,865) Cash payments to employees for services (55,888)(30,063) Net cash flows from operating activities 147,275 197,904 Cash flows from noncapital financing activities: Transfers out (118,133)(131,114) Intergovernmental 68,506 36,060 Interfund receivable repaid by (advanced to) other funds 1,138 289 Net cash flows from noncapital financing activities (48,489)(94,765) Cash flows from investing activities: Investment income: Interest and dividends 14,900 12,220 Change in fair value (3,900)930 Net cash flows from investing activities 11,000 13,150 Net increase in cash and cash equivalents 109,786 116,289 Cash and cash equivalents - January 1 364,161 247,872 Cash and cash equivalents - December 31 $473,947 $364,161 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income $134,772 $194,833 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 4,915 11,169 Changes in assets and liabilities: (Increase) decrease in accounts receivable (10,560)(7,182) Increase (decrease) in accounts payable 14,259 (1,628) Increase (decrease) in accrued salaries and withholdings payable (491)712 Increase (decrease) compensated absences payable 4,380 - Total adjustments 12,503 3,071 Net cash flows from operating activities $147,275 $197,904 152 CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND Statement 51 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals for December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Assets 20092008 Current assets: Cash and cash equivalents $ - $ - $ - $86,394$ - $86,394$149,954 Receivables: Accounts (net of allowance for uncollectibles)75,445 - - - - 75,44572,747 Interest - - 600200 - 8002,010 Interfund receivable - - 232,43669,788(302,224) - - Total current assets 75,445 0233,036156,382(302,224)162,639224,711 Noncurrent assets: Capital assets: Land 254,724 - - - - 254,724254,724 Equipment 95,719 - - - - 95,71995,719 Infrastructure 1,477,536 - - - - 1,477,5361,477,536 Construction in process - - - - - - - Total capital assets 1,827,979 0 0 0 01,827,9791,827,979 Less: accumulated depreciation (476,767) - - - - (476,767)(402,438) Net capital assets 1,351,212 0 0 0 01,351,2121,425,541 Total noncurrent assets 1,351,212 0 0 0 01,351,2121,425,541 Total assets 1,426,657 0233,036156,382(302,224)1,513,8511,650,252 Liabilities Currentliabilities: Totals Current liabilities: Accounts payable 1,149 - - - - 1,1491,153 Accrued salaries and withholdings payable 663 - - - - 6635,120 Due to other governmental units - - 48,401 - - 48,401 - Interfund payable 278,50023,724 - - (302,224) - 39,680 Accrued interest payable - - - 8,101 - 8,10110,241 Compensated absences payable - current 60 - - - - 60323 Bonds payable - current - - - 138,582 - 138,582130,470 Total current liabilities 280,37223,72448,401146,683(302,224)196,956186,987 Noncurrent liabilities: Compensated absences payable - noncurrent 1,139 - - - - 1,1394,773 Bonds payable - noncurrent - - - 357,675 - 357,675496,218 Total noncurrent liabilities 1,139 0 0357,675 0358,814500,991 Total liabilities 281,51123,72448,401504,358(302,224)555,770687,978 Net Assets Invested in capital assets, net of related debt1,351,212 - - (496,257) - 854,955798,853 Restricted for debt service - - 6,595148,281 - 154,876149,942 Unrestricted (206,066)(23,724)178,040 - - (51,750)13,479 Total net assets $1,145,146($23,724)$184,635($347,976)$0$958,081$962,274 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND Statement 52 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations 20092008 Operating revenues: Storm sewer service charges$331,899$ - $35,194$ - $ - $367,093$314,238 Operating expenses: Collection 153,826 - - - - 153,826128,563 Administration 1,199 - - - - 1,1991,538 Operating expenses - - 128,361 - - 128,361 - Depreciation 74,330 - - - - 74,33069,126 Total operating expenses229,355 0128,361 0 0357,716199,227 Net income (loss) from operations102,544 0(93,167)0 09,377115,011 Nonoperating revenues (expenses): Investment income: Interest and dividends - - 4,2001,800 - 6,0008,721 Change in fair value - - (1,200)(500) - (1,700)620 Miscellaneous revenues 3,497 - - - - 3,4976,750 Interest and fiscal charges - - - (20,367) - (20,367)(25,529) Total nonoperating revenues (expenses)3,497 0 3,000 (19,067)0 (12,570)(9,438) Net income (loss) before transfers106,041 0 (90,167)(19,067)0 (3,193)105,573 Transfers in - 5,000128,360141,100(274,460) - - Transfers out (275,460) - - - 274,460(1,000) - Total transfers (275,460)5,000 128,360 141,100 0 (1,000)0 Change in net assets (169,419)5,000 38,193 122,033 0 (4,193)105,573 Net assets - January 1 1,314,565(28,724)146,442(470,009) - 962,274856,701 Net assets - December 31 $1,145,146($23,724)$184,635($347,976)$0$958,081$962,274 Totals 154 CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND Statement 53 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 2009 2008 Cash flows from operating activities: Cash received from customers $367,892 $309,640 Cash paid to suppliers for goods and services (133,794)(71,016) Cash payments to employees for services (109,549)(60,441) Net cash flows from operating activities 124,549 178,183 Cash flows from noncapital financing activities: Transfers out (1,000) - Interfund payable (repaid to) advanced by other funds (39,680)38,259 Net cash flows from noncapital financing activities:(40,680)38,259 Cash flows from capital and related financing activities: Acquisition of capital assets - (95,719) Proceeds from sale of capital assets - 6,750 Principal payments - bonds (130,431)(125,771) Interest and fiscal charges (22,508)(27,535) Net cash flows from capital and related financing activities (152,939)(242,275) Cash flows from investing activities: Investment income: ddiiddInterest and dividends 7,210 9,282 Change in fair value (1,700)620 Net cash flows from investing activities 5,510 9,902 Net increase (decrease) in cash and cash equivalents (63,560)(15,931) Cash and cash equivalents - January 1 149,954 165,885 Cash and cash equivalents - December 31 $86,394 $149,954 Reconciliation of operating income to net cash flows from operating activities: Operating income $9,377 $115,011 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 74,330 69,126 Miscellaneous revenue 3,497 - Changes in assets and liabilities: (Increase) decrease in accounts receivable (2,698)(4,598) Increase (decrease) in accounts payable (4)(7,559) Increase (decrease) in accrued salaries and withholdings payable (4,457)4,266 Increase (decrease) in due to other governmental units 48,401 (1,860) Increase (decrease) compensated absences payable (3,897)3,797 Total adjustments 115,172 63,172 Net cash flows from operating activities $124,549 $178,183 155 - This page intentionally left blank - 156 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 54 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals for December 31, 2008 OperatingDebt ServiceIntrafundTotals AccountAccountEliminations20092008 Assets Current assets: Cash and cash equivalents $6,998$142,874$ - $149,872$195,473 Cash and cash equivalents with fiscal agent - 408,632 - 408,632408,561 Receivables: Accounts (net of allowance for uncollectables 478 - - 478 487 Interest - - - - 770 Interfund receivable - 120,000(120,000) - - Due from other governmental units 632 - - 6321,645 Prepayments - 95,366 - 95,366103,418 Inventory - at cost 2,134,357 - - 2,134,3571,792,397 Total current assets 2,142,465766,872(120,000)2,789,3372,502,751 Noncurrent assets: Capital assets: Land 2,006,714 - - 2,006,7141,983,815 Buildings 3,915,062 - - 3,915,0623,915,062 Equipment 375,215 - - 375,215340,216 Construction in progress - - - - - Total capital assets 6,296,991 0 06,296,9916,239,093 Less: accumulated depreciation (376,797) - - (376,797)(231,578) Net capital assets 5,920,194 0 05,920,1946,007,515 Total noncurrent assets 5,920,194 0 05,920,1946,007,515 Total assets 8,062,659766,872(120,000)8,709,5318,510,266 Liabilities Current liabilities: Accounts payable 365,554 - - 365,554244,014 Accrued salaries and withholdings payable 14,579 - - 14,57944,116 Contract payable - retained percentage 2,290 - - 2,290 - Due to other governmental units 81,456 - - 81,45676,693 Interfund payable 120,000 - (120,000) - - Accrued interest payable - 109,704 - 109,704112,891 Compensated absences payable - current 3,202 - - 3,2024,476 Bonds payable - current - 140,000 - 140,000 - Total current liabilities 587,081249,704(120,000)716,785482,190 Noncurrent liabilities: Compensated absences payable - noncurrent60,462 - - 60,46266,241 Bonds payable - noncurrent - 4,900,000 - 4,900,0005,040,000 Total noncurrent liabilities 60,4624,900,000 04,960,4625,106,241 Total liabilities 647,5435,149,704(120,000)5,677,2475,588,431 Net Assets Invested in capital assets, net of related debt5,920,194(4,545,384) - 1,374,8101,070,933 Restricted for debt service - 162,552 - 162,552295,670 Unrestricted 1,494,922 - - 1,494,9221,555,232 Total net assets $7,415,116($4,382,832)$0$3,032,284$2,921,835 157 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For Year Ended December 31, 2009 With Comparative Totals for Year Ended December 31, 2008 Operating Accounts Top Heights Top Valu Valu II Liquor Operating revenues: Charges for sales: Liquor $1,324,485$1,167,937 $406,031 Beer 1,450,526 1,500,232 537,072 Wine 513,561 530,347 47,000 Other 174,583 171,980 139,130 Total operating revenues 3,463,155 3,370,496 1,129,233 Operating expenses: Cost of goods sold 2,622,510 2,581,476 881,560 Operating expense 527,736 477,489 165,200 Depreciation 79,890 60,893 4,436 Total operating expenses 3,230,136 3,119,858 1,051,196 Net income from operations $233,019 $250,638 $78,037 Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Miscellaneous expenses Interest and fiscal charges Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers in Transfers out Total transfers Change in net assets Net assets - January 1 Net assets - December 31 158 Statement 55 TotalDebt OperatingServiceIntrafundTotals AccountsAccountEliminations20092008 $2,898,453$ - $ - $2,898,453$2,783,118 3,487,830 - - 3,487,8303,308,455 1,090,908 - - 1,090,9081,033,107 485,693 - - 485,693366,262 7,962,884 0 0 7,962,884 7,490,942 6,085,546 - - 6,085,5465,783,545 1,170,425 - - 1,170,4251,274,289 145,219 - - 145,219125,649 7,401,190 0 0 7,401,190 7,183,483 561,6940 0 561,694 307,459 - 71 - 7128,216 - - - - 240 (16,509) - - (16,509)(11,846) - (247,171) - (247,171)(235,340) (16,509)(247,100)0 (263,609)(218,730) 545,185(247,100)0 298,085 88,729 - 497,200(497,200) - - (684,836) - 497,200(187,636)(84,782) (684,836)497,2000(187,636)(84,782) (139,651)250,1000110,4493,947 7,554,767(4,632,932) - 2,921,8352,917,888 $7,415,116($4,382,832)$0$3,032,284$2,921,835 159 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 56 SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2 For Year Ended December 31, 2009 With Comparative Amount for Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from customers $7,963,906$7,491,632 Cash paid to suppliers for goods and services (6,636,890)(6,668,428) Cash payments to employees for services (887,837)(790,012) Net cash flows from operating activities 439,179 33,192 Cash flows from noncapital financing activities Interfund payable (repaid to) advanced by other funds - (806,486) Transfers out (187,636)(84,782) Net cash flows from noncapital financing activities (187,636)(891,268) Cash flows from capital and related financing activities: Acquisition of capital assets (55,608)(1,672,910) Proceeds from sale of capital assets - 750 Interest and fiscal charges - including capitalized interest (242,306)(210,263) Net cash flows from capital and related financing activities (297,914)(1,882,423) Cash flows from investing activities: Investment income: Interest and dividends 841 37,355Interest and dividends 841 37,355 Change in fair value - 240 Net cash flows from investing activities 841 37,595 Net increase (decrease) in cash and cash equivalents (45,530)(2,702,904) Total cash and cash equivalents - January 1 604,034 3,306,938 Total cash and cash equivalents - December 31 558,504 604,034 (Less) cash and cash equivalents with fiscal agent - December 31 (408,632)(408,561) Cash and cash equivalents - December 31 $149,872 $195,473 160 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 56 SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2 For Year Ended December 31, 2009 With Comparative Amount for Year Ended December 31, 2008 20092008 Reconciliation of operating income to net cash flows from operating activities: Operating income $561,694$307,459 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 145,219 125,649 Miscellaneous expense (16,509) - Changes in assets and liabilities: (Increase) decrease in accounts receivable 9 690 (Increase) decrease in due from other governmental units 1,013 (463) (Increase) decrease in prepayments 8,052 8,062 AAdjustment for nonoperating portion (8,052)(8,062) (Increase) decrease in inventory, at cost (341,960)(325,010) Increase (decrease) in accounts payable 121,540 (544,248) AAdjustment for nonoperating portion - 441,625 Increase (decrease) in accrued salaries and withholdings payable (29,537)6,199 Adjustment for nonoperating portion - 2,096 Increase (decrease) in contracts payable - retained percentage 2,290 (134,864) Adjustment for nonoperating portion (2,290)134,864Adjustment for nonoperating portion (2,290)134,864 Increase (decrease) in due to other governmental units 4,763 9,761 Increase (decrease) in compensated absences payable (7,053)9,434 Total adjustments (122,515)(274,267) Net cash flows from operating activities $439,179 $33,192 Noncash capital and related financing activities: Capital assets purchased/constructed on account $2,290 $ - 161 - This page intentionally left blank - 162 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing on a cost reimbursement basis of goods or services provided by one department or agency to other departments or agencies within the City. Central Garage 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 vehicles as necessary. Information Systems Fund – used to account for the costs associated with information systems within the City. All costs are recorded in the fund and are financed by transfers from user departments. Insurance Fund – used to account for certain costs of the City’s risk management services and to build a reserve for catastrophic losses. All costs for premiums, claims and claims administration are recorded in the fund and allocated to user funds based on a percentage risk factor. Compensated Absences Fund – used to account for funds that have been set aside by the City Council for compensated absences earned by employees’ services to the City’s governmental funds. Funds set aside for the compensated absences earned by employees’ services to the City’s proprietary funds are recorded directly in each particular proprietary fund. 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 57 COMBINING STATEMENT OF NET ASSETS December 31, 2009 Central Garage Information SystemsInsurance Compensated Absences Total Internal Service Funds Assets Current assets: Cash and cash equivalents $408,941$706,178$696,988$828,213$2,640,320 Interest receivable 1,4002,6002,400 - 6,400 Prepayments - - 55,840 - 55,840 Inventory - at cost 36,796 - - - 36,796 Total current assets 447,137708,778755,228828,2132,739,356 Noncurrent assets: Capital assets: Land 15,779 - - - 15,779 Buildings 1,585,993 - - - 1,585,993 Equipment 198,911154,597 - - 353,508 Total capital assets 1,800,683154,597 0 01,955,280 Less: accumulated depreciation (634,218)(92,178) - - (726,396) Net capital assets 1,166,46562,419 0 01,228,884 Total noncurrent assets 1,166,46562,419 0 01,228,884 Total assets 1,613,602 771,197 755,228 828,213 3,968,240 Liabilities Current liabilities: Accounts payable 38,6168,5393,406 - 50,561 Accrued salaries and withholdings payable 2,7542,874 - - 5,628 Compensated absences payable - current 1,165 492 - 37,24638,903 Total current liabilities 42,535 11,905 3,406 37,246 95,092 Noncurrent liabilities: Compensated absences payable - noncurrent21,9919,294 - 703,234734,519 Total liabilities 64,526 21,199 3,406 740,480 829,611 Net Assets Invested in capital assets, net of related debt1,166,46562,419 - - 1,228,884 Unrestricted 382,611687,579751,82287,7331,909,745 Total net assets $1,549,076$749,998$751,822$87,733$3,138,629 164 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 58 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2009 Central Garage Information SystemsInsurance Compensated Absences Interfund Eliminations Total Internal Service Funds Operating revenues: Charges for services: Services to departments$172,485$ - $505,826$ - $ - $678,311 Use of space258,941 - - - - 258,941 Recovery of damages - - 30,821 - - 30,821 Charges for sales: Sales of motor fuel105,979 - - - - 105,979 Total operating revenues537,405 0 536,647 0 0 1,074,052 Operating expenses: Cost of services and space460,599233,870487,023 - - 1,181,492 Depreciation48,20721,014 - - - 69,221 Total operating expenses508,806 254,884 487,023 0 0 1,250,713 Net income (loss) from operations28,599(254,884)49,62400(176,661) Nonoperating revenues: Investment income: Interest and dividends10,00018,80017,000 - - 45,800 Change in fair value(2,900)(5,400)(4,900) - - (13,200) Intergovernmental20,676 - - - - 20,676 Miscellaneous - - - - - - Total nonoperating revenues27,776 13,400 12,100 0 0 53,276 Net income (loss) before transfers56,375 (241,484)61,724 0 0(123,385) Capital contributions15,779 - - - - 15,779 Transfers in - 240,000 - - (25,000)215,000 Transfers out(61,250) - (13,767) - 25,000(50,017) Total transfers and capital contributions(45,471)240,000 (13,767)0 0 180,762 Change in net assets10,904 (1,484)47,957 0 057,377 Net assets - January 11,538,172751,482703,86587,733 - 3,081,252 Net assets - December 31$1,549,076 $749,998 $751,822 $87,733 $0 $3,138,629 165 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 59 COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 2009 Central Garage Information SystemsInsurance Compensated Absences Total Internal Service Funds Cash flows from operating activities: Cash received from interfund goods and services provided $537,405$ - $505,826$616,632$1,659,863 Cash received for damages - - 30,821 - 30,821 Cash paid to suppliers for goods and services (263,765)(66,124)(477,395) - (807,284) Cash payments to employees for services (179,266)(191,496) - (625,420)(996,182) Net cash flows from operating activities 94,374(257,620)59,252 (8,788)(112,782) Cash flows from noncapital financing activities: Intergovernmental 20,676 - - - 20,676 Transfers in - 240,000 - - 240,000 Transfers out (61,250) - (13,767) - (75,017) Net cash flows from noncapital financing activities (40,574)240,000 (13,767)0 185,659 Cash flows from capital and related financing activities: Acquisition of capital assets (39,782)(35,449) - - (75,231) Net cash flows from capital and related financing activities (39,782)(35,449)0 0 (75,231) Cash flows from investing activities: Investment income: Interest and dividends 11,540 22,170 19,750 6,130 59,590 Change in fair value (2,900)(5,400)(4,900) - (13,200) Net cash flows from investing activities 8,640 16,770 14,850 6,130 46,390 Net increase (decrease) in cash and cash equivalents 22,658 (36,299)60,335 (2,658)44,036 Cash and cash equivalents - January 1 386,283742,477636,653830,8712,596,284 Cash and cash equivalents - December 31 $408,941 $706,178 $696,988 $828,213 $2,640,320 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$28,599($254,884)$49,624$ - ($176,661) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 48,207 21,014 - - 69,221 Changes in assets and liabilities: (Increase) decrease in prepayments - - 6,971 - 6,971 (Increase) decrease in inventory, at cost (3,023) - - - (3,023) Increase (decrease) in accounts payable 25,631 (19,700)2,657 - 8,588 Increase (decrease) in accrued - salaries and withholdings payable (5,021)(5,488) - - (10,509) Increase (decrease) in compensated absences payable (19)1,438 - (8,788)(7,369) Total adjustments 65,775 (2,736)9,628 (8,788)63,879 Net cash flows from operating activities $94,374($257,620)$59,252 ($8,788)($112,782) Noncash capital and related financing activities: Contribution of capital assets from government $15,779$ - $ - $ - $15,779 166 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 60 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals For December 31, 2008 Capital Equipment OperatingReplacement Totals AccountAccount2009 2008 Assets Current assets: Cash and cash equivalents $386,505$22,436$408,941$386,283 Interest receivable 1,300 100 1,400 2,940 Inventory - at cost 36,796 - 36,79633,773 Total current assets 424,60122,536447,137422,996 Noncurrent assets: Capital assets: Land 15,779 - 15,779 - Buildings 1,585,993 - 1,585,9931,510,174 Equipment 198,911 - 198,911198,911 Construction in progress - - - 36,037 Total capital assets 1,800,683 01,800,6831,745,122 Less: Accumulated depreciation (634,218) - (634,218)(586,011) Net capital assets 1,166,465 01,166,4651,159,111 Total noncurrent assets 1,166,465 01,166,4651,159,111 Total assets 1,591,06622,5361,613,6021,582,107 Liabilities Current liabilities: Accounts payable 38,616 - 38,61612,985 Accrued salaries and withholdings payable 2,754 - 2,754 7,775 Compensated absences payable - current 1,165 - 1,165 1,467 Total current liabilities 42,535 0 42,535 22,227 Noncurrent liabilities: Compensated absences payable - noncurrent 21,991 - 21,99121,708 Total liabilities 64,526 0 64,526 43,935 Net Assets Invested in capital assets, net of related debt 1,166,465 - 1,166,4651,159,111 Unrestricted 360,07522,536382,611379,061 Total net assets $1,526,540$22,536$1,549,076$1,538,172 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 61 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 Capital Equipment OperatingReplacementIntrafundTotals AccountAccountEliminations20092008 Operating revenues: Charges for services: Services to departments $172,485$ - $ - $172,485$172,376 Use of space 258,941 - - 258,941267,091 Charges for sales: Sales of motor fuel 105,979 - - 105,979163,400 Total operating revenues 537,405 0 0 537,405602,867 Operating expenses: Cost of services and space 460,600 (1) - 460,599521,077 Depreciation 48,207 - - 48,20747,479 Total operating expenses 508,807 (1)0 508,806568,556 Net income from operations 28,598 1 0 28,59934,311 Nonoperating revenues: Investment income: Interest and dividends 9,300 700 - 10,00012,740 Change in fair value (2,700)(200) - (2,900)910 Intergovernmental 20,676 - - 20,676 - Total nonoperating revenues 27,276 500 027,77613,650 Net income before capital contributions and transfers 55,874 501 056,375 47,961 Capital contribution - capital asset 15,779 - - 15,779 - Transfers in 39,782 4,000(43,782) - 18,941 Transfers out (65,250)(39,782)43,782(61,250)(97,500) Total transfers (9,689)(35,782)0 (45,471)(78,559) Change in net assets 46,185 (35,281)0 10,904 (30,598) Total net assets - January 1 1,480,35557,817 - 1,538,1721,568,770 Total net assets - December 31 $1,526,540 $22,536 $0 $1,549,076 $1,538,172 168 CITY OF COLUMBIA HEIGHTS, MINNESOTA CENTRAL GARAGE FUND Statement 62 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from interfund goods & services provided $537,405 $602,867 Cash paid to suppliers for goods and services (263,765)(347,184) Cash payments to employees for services (179,266)(187,575) Net cash flows from operating activities 94,374 68,108 Cash flows from noncapital financing activities: Intergovernmental 20,676 - Transfers out (61,250)(25,000) Net cash flows from noncapital financing activities:(40,574)(25,000) Cash flows from capital and related financing activities: Acquisition of capital assets (39,782)(54,979) Transfers in - 18,941 Transfers out - (72,500) Net cash flows from capital and related financing activities (39,782)(108,538) Cash flows from investing activities: Investment income: Interest and dividends 11,540 13,100 Change in fair value (2,900)910 Net cash flows from investing activities 8,640 14,010 Net increase (decrease) in cash and cash equivalents 22,658 (51,420) Cash and cash equivalents - January 1 386,283 437,703 Cash and cash equivalents - December 31 $408,941 $386,283 Reconciliation of operating income to net cash flows from operating activities: Operating income $28,599 $34,311 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 48,207 47,479 Changes in assets and liabilities: (Increase) decrease in inventory, at cost (3,023)8,627 Increase (decrease) in accounts payable 25,631 (26,232) Increase (decrease) in accrued salaries and withholdings payable (5,021)6 Increase (decrease) in compensated absences payable (19)3,917 Total adjustments 65,775 33,797 Net cash flows from operating activities $94,374 $68,108 Noncash capital and related financing activities: Contribution of capital assets from government $15,779 $0 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA INFORMATION SYSTEMS FUND Statement 63 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals For December 31, 2008 Capital Equipment Operating Replacement Totals AccountAccount 2009 2008 Assets Current assets: Cash and cash equivalents $706,178$ - $706,178$742,477 Interest receivable 2,600 - 2,600 5,970 Total current assets 708,778 0708,778748,447 Noncurrent assets: Capital assets: Equipment 154,597 - 154,597119,148 Less: accumulated depreciation (92,178) - (92,178)(71,164) Net capital assets 62,419 - 62,419 47,984 Total noncurrent assets 62,419 0 62,419 47,984 Total assets 771,197 0771,197796,431 Liabilities Current liabilities: Accounts payable 8,539 - 8,539 28,239 Accrued salaries and withholdings payable 2,874 - 2,874 8,362 Compensated absences payable - current 492 - 492 529 Total current liabilities 11,905 0 11,905 37,130 Noncurrent liabilities: Compensated absences payable - noncurrent 9,294 - 9,294 7,819 Total liabilities 21,199 0 21,199 44,949 Net Assets Invested in capital assets, net of related debt 62,419 - 62,419 47,984 Unrestricted 687,579 - 687,579703,498 Total net assets $749,998 $0 $749,998 $751,482 170 CITY OF COLUMBIA HEIGHTS, MINNESOTA INFORMATION SYSTEMS FUND Statement 64 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 Capital Equipment OperatingReplacementIntrafund Totals AccountAccountEliminations2009 2008 Operating revenues $ - $ - $ - $ - $ - Operating expenses: Cost of services 233,870 - - 233,870223,722 Depreciation21,014 - - 21,01411,698 Total operating expenses 254,884 0 0254,884235,420 Net income (loss) from operations (254,884)0 0(254,884)(235,420) Nonoperating revenues: Investment income: Interest and dividends 18,500 300 - 18,80025,900 Change in fair value (5,300)(100) - (5,400)1,840 Total nonoperating revenues 13,200 200 013,40027,740 Net income (loss) before transfers (241,684)200 0 (241,484)(207,680) Transfers in 274,447 - (34,447)240,000235,000 Transfers out - (34,447)34,447 - - Total transfers 274,447(34,447)0240,000235,000 Change in net assets 32,763 (34,247)0 (1,484)27,320 Net assets - January 1 717,23534,247 - 751,482724,162 Net assets - December 31 $749,998 $0 $0 $749,998 $751,482 171 CITY OF COLUMBIA HEIGHTS, MINNESOTA INFORMATION SYSTEMS FUND Statement 65 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash paid to suppliers for goods and services ($66,124)($22,390) Cash payments to employees for services (191,496)(174,108) Net cash flows from operating activities (257,620)(196,498) Cash flows from noncapital financing activities: Transfers in 240,000 235,000 Cash flows from capital and related financing activities: Acquisition of capital assets (35,449)(23,795) Cash flows from investing activities: Investment income: Interest and dividends 22,170 25,540 Change in fair value (5,400)1,840 Net cash flows from investing activities 16,770 27,380 Net increase in cash and cash equivalents (36,299)42,087 Cash and cash equivalents - January 1 742,477 700,390 Cash and cash equivalents - December 31 $706,178 $742,477 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)($254,884)($235,420) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 21,014 11,698 Changes in assets and liabilities: Increase (decrease) in accounts payable (19,700)26,207 Increase (decrease) in accrued salaries and withholdings payable (5,488)1,694 Increase (decrease) in compensated absences payable 1,438 (677) Total adjustments (2,736)38,922 Net cash flows from operating activities ($257,620)($196,498) 172 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 66 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals For December 31, 2008 20092008 Assets Current assets: Cash and cash equivalents$696,988$636,653 Interest receivable 2,4005,150 Prepayments 55,840 62,811 Total assets 755,228 704,614 Liabilities Current liabilities: Accounts payable 3,406 749 Total liabilities 3,406 749 Net Assets Unrestricted 751,822 703,865 Total net assets $751,822 $703,865 173 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 67 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Operating revenues: Insurance allocation$505,826$439,826 Recovery of damages30,82113,152 Total operating revenues 536,647 452,978 Operating expenses: Cost of services: Premiums 463,883 438,621 Claims 23,140 19,421 Total operating expenses 487,023 458,042 Net income (loss) from operations 49,624 (5,064) Nonoperating revenues: Investment income: Interest and dividends 17,000 22,290 Change in fair value (4,900)1,590 Total nonoperating revenues 12,100 23,880 Net income before transfers 61,724 18,816 Transfers out (13,767) - Change in net assets 47,957 18,816 Net assets - January 1 703,865 685,049 Net assets - December 31 $751,822 $703,865 174 CITY OF COLUMBIA HEIGHTS, MINNESOTA INSURANCE FUND Statement 68 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from interfund services provided $505,826 $439,826 Cash received for damages 30,821 13,152 Cash paid to suppliers for goods and services (477,395)(461,358) Net cash flows from operating activities 59,252 (8,380) Cash flows from noncapital financing activities: Transfers out (13,767) - Cash flows from investing activities: Investment income: Interest and dividends 19,750 22,190 Change in fair value (4,900)1,590 Net cash flows from investing activities 14,850 23,780 Net increase in cash and cash equivalents 60,335 15,400 Cash and cash equivalents - January 1 636,653 621,253 Cash and cash equivalents - December 31 $696,988 $636,653 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$49,624 ($5,064) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: (Increase) decrease in prepayments 6,971 (4,065) Increase (decrease) in accounts payable 2,657 749 Total adjustments 9,628 (3,316) Net cash flows from operating activities $59,252 ($8,380) 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 69 SUBCOMBINING SCHEDULE OF NET ASSETS December 31, 2009 With Comparative Totals For December 31, 2008 20092008 Assets Current assets: Cash and cash equivalents $828,213 $830,871 Interest receivable - 6,130 Total assets 828,213 837,001 Liabilities Current liabilities: Compensated absences payable - current 37,246 47,428 Noncurrent liabilities: Compensated absences payable - noncurrent 703,234 701,840 Total liabilities 740,480 749,268 Net Assets Unrestricted 87,733 87,733 Total net assets $87,733 $87,733 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 70 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Operating revenues: Charges for services $ - $ - Operating expenses: Personal services - 40,569 Net income (loss) from operations 0 (40,569) Nonoperating revenues: Investment income: Interest and dividends - 26,560 Change in fair value - 1,890 Total nonoperating revenues 0 28,450 Change in net assets 0 (12,119) Net assets - January 1 87,733 99,852 Net assets - December 31 $87,733 $87,733 177 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMPENSATED ABSENCES FUND Statement 71 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2009 With Comparative Totals For The Year Ended December 31, 2008 20092008 Cash flows from operating activities: Cash received from interfund services provided $616,632 $493,110 Cash payments to employees for services (625,420)(462,771) Net cash flows from operating activities (8,788)30,339 Cash flows from investing activities: Investment income: Interest and dividends 6,130 26,550 Change in fair value - 1,890 Net cash flows from investing activities 6,130 28,440 Net increase in cash and cash equivalents (2,658)58,779 Cash and cash equivalents - January 1 830,871 772,092 Cash and cash equivalents - December 31 $828,213 $830,871 Reconciliation of operating income (loss) to net cash flows from operating activities: Operatingincome(loss)$-($40,569)Operating income (loss)$ - ($40,569) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: Increase (decrease) in compensated absences payable (8,788)70,908 Total adjustments (8,788)70,908 Net cash flows from operating activities ($8,788)$30,339 178 AGENCY FUNDS Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments and the like. The City of Columbia Heights had the following Agency Funds during the year: Permit Surcharge Fund – used to account for SAC charges and surcharges collected for and remitted to the State of Minnesota. Tri-City GIS Fund – used to account for joint purchases of geographic information services by the Cities of Columbia Heights, Fridley and Andover. 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 72 AGENCY FUNDS For The Year Ended December 31, 2009 Balance Balance January 1,December 31, 2008 AdditionsDeletions 2009 Permit Surcharge Fund Assets: Cash and investments $5,070$12,822($17,135)$757 Total assets $5,070$12,822($17,135)$757 Liabilities: Due to other governmental units $5,070$12,822($17,135)$757 Total liabilities $5,070$12,822($17,135)$757 Tri-City GIS Fund Assets: Cash and investments $831$81,362($80,440)$1,753 Due from other governmental units 6,977 33,775 (32,219)8,533 Total assets $831$81,362($80,440)$10,286 Liabilities: Accounts payable $6,621$82,378($80,440)$8,559 Due to other governmental units 1,187 34,315 (33,775)1,727 Total liabilities $7,808$116,693($114,215)$10,286 Total Assets: Cash and investments $5,901$94,184($97,575)$2,510 Due from other governmental units 6,977 33,775 (32,219)8,533 Total assets $12,878$127,959($129,794)$11,043 Liabilities: Accounts payable $6,621$82,378($80,440)$8,559 Due to other governmental units 6,257 47,137 (50,910)2,484 Total liabilities $12,878$129,515($131,350)$11,043 180 III. STATISTICAL SECTION (UNAUDITED) 181 - This page intentionally left blank - 182 STATISTICAL SECTION The following detailed statistical tables are presented to provide a context for understanding and evaluating the information presented in the other parts of this report. Unless otherwise noted, the information in these statistical tables is derived from the City of Columbia Heights’ Comprehensive Annual Financial Reports for the relevant years. Certain information in prior years’ presentations have been reclassified and/or adjusted in these tables to conform to the current year presentation. These tables address the five categories of information listed below. Financial Trends - Tables 1 through 4 These tables contain trend information to help the reader understand how the City’s financial performance has changed over time. Revenue Capacity - Tables 5 through 8 These tables contain information to help the reader assess the factors affecting the City’s ability to generate property taxes. Debt Capacity - Tables 9 through 13 These tables contain present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future. Demographic and Economic Information - Tables 14 and 15 These tables offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments. Operating Information - Tables 16 through 18 These tables contain information about the City’s operations and resources to help the reader understand the relationship between the City’s financial activities and the services the City provides. 183 CITY OF COLUMBIA HEIGHTS, MINNESOTA NET ASSETS BY COMPONENT Last Eight Fiscal Years (A) (Accrual Basis of Accounting) 200220032004 Governmental activities: Invested in capital assets, net of related debt $15,022,274$14,535,589$14,328,916 Restricted 1,203,523 1,114,870 2,285,305 Unrestricted 16,904,724 18,169,133 20,455,981 Total governmental activities net assets $33,130,521$33,819,592$37,070,202 Business-type activities: Invested in capital assets, net of related debt $5,473,625 $5,432,788 $6,175,547 Restricted 175,783 290,175 337,389 Unrestricted 7,658,623 7,325,228 6,918,745 Total business-type activities net assets $13,308,031$13,048,191$13,431,681 Primary government: Invested in capital assets, net of related debt $20,495,899$19,968,377$20,504,463 Restricted 1,379,306 1,405,045 2,622,694 Unrestricted 24,563,347 25,494,361 27,374,726 Total primary government net assets $46,438,552$46,867,783$50,501,883 Fiscal Year (A) Net asset information is not available for years prior to 2002; the year the City implemented GASB Statement 34. 184 Table 1 20052006200720082009 $16,727,724$18,043,277$18,859,030$23,497,922$24,163,911 2,302,0562,224,3842,228,4542,316,9592,458,743 18,650,98123,028,97422,985,52321,011,46522,423,351 $37,680,761 $43,296,635 $44,073,007 $46,826,346 $49,046,005 $6,732,499 $5,759,805 $6,039,739 $7,142,278 $7,459,474 375,652 455,227 775,036 745,601 648,435 6,506,201 7,299,574 6,478,383 5,855,495 6,014,140 $13,614,352 $13,514,606 $13,293,158 $13,743,374 $14,122,049 $23,460,223 $23,803,082 $24,898,769 $30,640,200 $31,623,385 2,677,708 2,679,611 3,003,490 3,062,560 3,107,178 25,157,182 30,328,548 29,463,906 26,866,960 28,437,491 $51,295,113 $56,811,241 $57,366,165 $60,569,720 $63,168,054 Fiscal Year 185 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN NET ASSETS Last Eight Fiscal Years (A) (Accrual Basis of Accounting) 200220032004 Expenses Governmental activities: General government $1,915,920$1,756,434$1,669,721 Public safety 3,920,7463,630,5353,640,970 Public works 1,659,1522,646,8592,109,060 Culture and recreation 2,018,5711,909,8311,904,848 Community development 1,679,1071,239,0302,171,407 Interest on long-term debt 575,712414,297 387,544 Total governmental activities expenses 11,769,20811,596,98611,883,550 Business-type activities: Water 1,561,0711,903,3311,637,316 Sewer 1,058,7211,231,5941,219,200 Refuse 1,271,9611,330,2721,321,730 Storm sewer 162,499204,895 158,374 Liquor 6,343,7756,619,9426,593,578 Total business-type activities expenses 10,398,02711,290,03410,930,198 Total primary government expenses $22,167,235$22,887,020$22,813,748 Program revenues Governmental activities: Chargesforservices: Fiscal Year Charges for services: General government $594,983$724,331$203,344 Public safety 290,465330,768 488,216 Public works 168,608306,193 48,253 Culture and recreation 233,498107,318 239,352 Community development 501,288510,6201,313,912 Operating grants and contributions: General government 2,688 - - Public safety 387,828405,098 436,460 Public works 161,384194,987 213,801 Culture and recreation 140,938 41,492 72,269 Community development 525,821304,669 955,213 Capital grants and contributions: Public safety - 225,000 225,000 Public works - 613,3041,315,007 Culture and recreation 4,043,856 - 50,250 Community development 466,373 56,805 177,737 Total governmental activities program revenues 7,517,7303,820,5855,738,814 186 Table 2 Page 1 of 2 2005 2006 2007 2008 2009 $1,681,229 $1,689,675 $1,732,111 $1,835,453 $1,761,334 4,052,905 3,992,930 4,380,363 4,599,669 4,591,977 2,391,726 2,353,032 2,506,913 2,906,950 2,794,189 2,017,816 2,135,633 2,313,750 2,283,881 2,182,856 5,360,442 2,579,084 5,918,257 4,476,475 2,385,405 288,532 118,760 496,688 721,006 961,392 15,792,650 12,869,114 17,348,082 16,823,434 14,677,153 1,717,445 2,026,603 2,113,121 2,149,976 1,927,811 1,333,420 1,393,679 1,675,738 1,571,487 1,737,134 1,147,313 1,147,879 1,170,707 1,185,298 1,290,528 162,915 184,764 204,221 216,362 376,884 6,544,175 6,377,805 6,539,357 7,470,323 7,701,961 10,905,268 11,130,730 11,703,144 12,593,446 13,034,318 $26,697,918 $23,999,844 $29,051,226 $29,416,880 $27,711,471 Fiscal Year $228,740 $171,146 $177,378 $173,485 $169,850 423,450 528,752 670,017 616,107 637,653 81,607 267,960 130,351 67,226 34,149 250,380 263,565 297,341 262,562 256,969 2,748,542 1,461,497 1,504,679 1,562,345 1,019,191 79 2,769 - 2,560 1,505 557,983 355,356 389,325 433,732 434,402 178,311 161,176 154,309 154,049 161,401 76,405 79,371 47,784 239,865 102,517 144,121 160,017 159,624 185,506 211,400 599,917 52,463 103,974 57,700 19,520 46,052 3,896,862 1,448,180 1,596,348 1,683,024 1,702,543 141,738 71,516 42,588 1,500 - 682,872 1,311,525 2,974,449 199,505 7,038,130 8,225,544 6,466,003 8,368,522 4,932,586 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN NET ASSETS Last Eight Fiscal Years (A) (Accrual Basis of Accounting) 200220032004 Business-type activities: Charges for services: Water $ - $1,548,505$1,771,153 Sewer 1,391,6691,240,8821,019,532 Refuse 1,220,9361,248,3461,255,011 Storm sewer 1,248,982184,712 284,223 Liquor 172,9756,960,9166,975,756 Operating grants and contributions:6,883,344 - Sewer 198 1,865 - Refuse 53,780 53,411 46,635 Storm sewer - 52,499 - Capital grants and contributions: Water - - - Sewer - - - Storm sewer 130,339 - 113,407 Total business-type activities program revenues 11,102,22311,291,13611,465,717 Total primary government program revenues $18,619,953$15,111,721$17,204,531 Net (expense) revenue: Governmental activities ($4,251,478)($7,776,401)($6,144,736) Fiscal Year Business-type activities 704,196 1,102 535,519 Total primary government net (expense) revenue (3,547,282)(7,775,299)(5,609,217) General revenues and other changes in net assets Governmental activities: Taxes: Property taxes 4,341,9724,306,0364,989,205 Tax increment collections 798,446781,439 972,208 Unrestricted grants and contributions 3,275,4172,712,4082,337,386 Investment earnings 1,201,447408,208 729,456 Miscellaneous 6,454103,524 - Transfers 734,236487,613 467,091 Total governmental activities 10,357,9728,799,2289,495,346 Business-type activities: Investment earnings 375,624126,671 215,062 Transfers (734,236)(487,613)(467,091) Total business-type activities (358,612)(360,942)(252,029) Total primary government $9,999,360$8,438,286$9,243,317 Change in net assets: Governmental activities $6,006,494$1,022,827$3,350,610 Business-type activities 445,584(359,840)283,490 Total primary government $6,452,078$662,987$3,634,100 (A) Changes in net assets are not available for years prior to 2002; the year the City implemented GASB Statement 34. 188 Table 2 Page 2 of 2 2005 2006 2007 2008 2009 $1,887,990 $2,141,648 $2,273,980 $2,414,316 $2,471,257 1,145,810 1,374,217 1,419,252 1,440,165 1,465,496 1,256,180 1,263,267 1,303,472 1,341,014 1,383,979 274,907 270,467 290,419 314,238 370,590 6,714,575 6,546,979 6,722,622 7,490,942 7,962,884 - - - 1,718 - 46,170 47,755 36,060 50,572 50,105 - - - - - - 22,822 - - - - - - 54,774 - - - - - - 11,325,632 11,667,155 12,045,805 13,107,739 13,704,311 $18,363,762 $19,892,699 $18,511,808 $21,476,261 $18,636,897 ($8,754,520)($4,643,570)($10,882,079)($8,454,912)($9,744,567) Fiscal Year 420,364 536,425 342,661 514,293 669,993 (8,334,156)(4,107,145)(10,539,418)(7,940,619)(9,074,574) 5,662,368 5,953,722 6,321,467 6,762,129 8,046,318 1,088,267 1,086,298 1,183,062 1,557,891 1,244,684 1,768,216 1,679,384 1,844,516 1,516,412 1,731,185 471,142 706,231 1,379,726 1,050,827 475,345 18,980 15,930 44,000 40,877 82,704 445,249 957,879 456,537 280,115 383,990 9,454,222 10,399,444 11,229,308 11,208,251 11,964,226 118,413 181,708 321,571 216,038 92,672 (445,249)(957,879)(456,537)(280,115)(383,990) (326,836)(776,171)(134,966)(64,077)(291,318) $9,127,386 $9,623,273 $11,094,342 $11,144,174 $11,672,908 $699,702 $5,755,874 $347,229 $2,753,339 $2,219,659 93,528 (239,746)207,695 450,216 378,675 $793,230 $5,516,128 $554,924 $3,203,555 $2,598,334 189 CITY OF COLUMBIA HEIGHTS, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2000 2001 2002 2003 General fund: Reserved $6,858 $7,003$14,657 $14,727 Unreserved 4,794,5603,890,3733,500,9493,408,505 Total general fund $4,801,418$3,897,376$3,515,606$3,423,232 All other governmental funds: Reserved $986,662$951,121$950,813$976,139 Unreserved, reported in: Special revenue funds 3,272,2683,190,810355,626 610,804 Debt service funds 1,546,3311,710,7161,187,646 841,666 Capital projects funds 4,729,2557,688,86511,938,61113,633,284 Total all other governmental funds $10,534,516$13,541,512$14,432,696$16,061,893 Fiscal Year 190 Table 3 200420052006200720082009 $23,302$10,484$35,323$35,710$12,159$71,898 4,116,8083,339,6443,560,5253,943,4363,743,7984,724,253 $4,140,110$3,350,128$3,595,848$3,979,146$3,755,957$4,796,151 $5,273,705$2,187,884$2,668,322$2,382,354$968,602$1,643,915 (652,449)(612,434)(506,084)411,0901,868,3402,332,610 1,044,647621,250809,0621,745,4473,242,4713,177,586 12,367,58912,784,74415,034,96815,918,04820,233,69013,173,074 $18,033,492$14,981,444$18,006,268$20,456,939$26,313,103$20,327,185 Fiscal Year 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2000 2001 2002 2003 Revenues: Taxes $4,809,958$4,878,197$5,143,733$5,076,498 Special assessments 448,199 628,222 597,380564,351 Licenses, fees and permits 268,014 292,744 277,924281,480 Intergovernmental 6,094,8066,597,6507,996,9923,844,988 Charges for services 1,102,2491,191,1651,166,8761,125,431 Fines and penalties 90,218 87,760 84,346140,378 Investment earnings 1,191,174 987,6431,201,447392,995 Other revenues 1,187,9891,469,836 327,771435,829 Total revenues 15,192,607 16,133,217 16,796,469 11,861,950 Expenditures: Current: General government 1,876,9961,663,801 Public safety 3,829,1783,590,525 Public works 1,162,9961,208,055 Culture and recreation 1,897,6901,862,777 Community development 1,545,4051,622,468 Capital outlay: Fiscal Year Capital outlay: General government 20,778 16,037 Public safety 124,648348,221 Public works 5,296,2011,273,747 Culture and recreation 26,610 71,700 Community development 257,425 55,824 Debt service: Principal retirement 716,515477,918 Interest and fiscal charges 561,222602,592 Issuance costs - 10,330 Developer incentives 104,258 85,211 Total expenditures 14,038,385 14,148,923 17,419,922 12,889,206 Revenues over (under) expenditures 1,154,222 1,984,294 (623,453)(1,027,256) Note (A) 192 Table 4 Page 1 of 2 2004 2005 2006 2007 2008 2009 $5,937,431$6,702,610$6,977,604$7,444,199$8,263,763$9,218,038 671,357 520,031 1,011,553 1,137,576 2,505,523 879,092 586,957 382,339 597,557 444,833 423,465 435,618 4,687,866 4,878,487 4,228,308 4,229,414 3,734,826 3,777,355 1,442,438 3,197,360 1,887,314 1,995,859 1,665,604 1,513,667 140,282 127,555 129,400 160,383 142,283 139,955 695,275 432,959 648,744 1,271,216 984,846 456,145 176,575 90,956 251,414 170,344 296,815 102,901 14,338,181 16,332,297 15,731,894 16,853,824 18,017,125 16,522,771 1,576,233 1,575,863 1,577,484 1,616,374 1,706,244 1,646,974 3,615,200 3,954,019 3,887,884 4,122,411 4,345,716 4,418,436 1,311,390 1,558,987 1,523,170 1,640,713 1,955,250 1,736,999 1,872,178 1,977,798 2,074,835 2,238,793 2,202,680 2,003,635 1,576,161 4,511,338 2,256,122 3,077,310 4,077,576 2,115,628 Fiscal Year - 11,022 4,512 - 5,453 45,708 476,511 95,125 82,986 254,728 3,499,713 8,997,400 1,637,559 1,912,738 4,202,665 1,303,297 1,084,959 951,240 83,955 62,700 117,909 274,896 3,269,986 2,256,958 682,939 1,436,724 266,144 306,332 287,620 139,118 514,789 1,449,035 782,273 792,273 1,029,836 783,974 652,518 2,478,205 119,544 219,065 384,293 835,167 29,918 - 25,114 148,972 155,397 56,189 67,866 252,176 142,451 2,584,854 71,341 125,857 14,097,217 21,275,730 17,063,093 18,580,018 24,076,064 26,113,283 240,964 (4,943,433)(1,331,199)(1,726,194)(6,058,939)(9,590,512) 193 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2000 2001 2002 2003 Other financing sources (uses): Bonds issued $ - $ - $ - $1,332,828 Bond premium (discount) - - - (5,998) Transfers in 2,923,1884,940,5606,857,8033,849,932 Transfers out (2,702,977)(4,821,900)(5,751,430)(2,880,382) Sale of capital assets - - - 267,699 Total other financing sources (uses)220,211 118,660 1,106,373 2,564,079 Net change in fund balance $1,374,433$2,102,954$482,920$1,536,823 Expenditures capitalized for governmental activities reporting purposes 5,280,4071,273,938 Debt service as a percentage of noncapital expenditures (B)10.5%9.4% Debt service as a percentage oftotalexpenditures(B)7.3%8.5% Fiscal Year Note (A) of total expenditures (B)7.3%8.5% (A) Information necessary to present expenditures by the classifications used in this table is not available for years prior to 2002; the year the City implemented GASB Statement 34. (B) For the purpose of the debt service ratios presented in this table, debt service expenditures are determined by subtracting developer incentives from the debt service expenditures reported in the table, and noncapital expenditures are determined by subtracting expenditures capitalized for governmental activities reporting purposes from the total governmental funds expenditures reported in the table. 194 Table 4 Page 2 of 2 2004 2005 2006 2007 2008 2009 $1,985,000 $ - $2,759,550$3,890,000$10,975,000$4,190,000 (5,935) - 26,303 (22,108) - - 838,937 553,070 1,807,877 570,374 377,615 458,231 (370,489)(80,321)(70,000)(70,000)(88,941)(99,224) - 628,654 78,013 191,897 428,240 95,781 2,447,513 1,101,403 4,601,743 4,560,163 11,691,914 4,644,788 $2,688,477($3,842,030)$3,270,544$2,833,969$5,632,975($4,945,724) 2,355,420 3,518,309 4,592,787 1,896,363 7,909,56112,364,511 10.2%22.1%7.4%7.0%9.7%12.2% 8.5%18.5%5.4%6.2%6.5%6.4% Fiscal Year 8.5%18.5%5.4%6.2%6.5%6.4% 195 CITY OF COLUMBIA HEIGHTS, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY Table 5 Last Ten Fiscal Years (Unaudited) Adjusted Adjusted Tax Tax Capacity Value Taxable Net TotalEstimated Capacity Value Fiscal Other Captured Tax Area Wide Allocation (B)Tax Capacity Direct TaxMarket as a Percent Year ResidentialProperty (A)Increment ValueSubtotalContributionDistributionValue ( C)Rate (D)Valueof EMV 2000 $8,409,338($503,719)$2,777,292$10,682,91130.147%$662,002,0001.614% 2001 9,392,543(573,922)3,085,98411,904,60530.564%749,621,7001.588% 2002 8,116,453(385,323)1,976,8469,707,97649.114%843,669,7001.151% 2003$7,852,288$1,731,844($823,154)8,760,978(409,330)2,111,49510,463,14345.272%982,517,6001.065% 20048,808,1431,813,247(1,010,335)9,611,055(379,508)2,267,40111,498,94847.888%1,077,714,4001.067% 200510,170,0411,874,629(1,152,643)10,892,027(417,605)2,275,59112,750,01347.859%1,203,032,8001.060% 200611,487,4241,861,133(1,193,227)12,155,330(453,305)2,324,91714,026,94244.736%1,271,030,5001.104% 200712,860,3731,967,884(1,389,436)13,438,821(443,665)2,473,14015,468,29641.511%1,387,050,1001.115% 200813,596,2902,219,619(1,747,297)14,068,612(485,657)2,877,43216,460,38743.076%1,454,932,2001.131% 200913,229,8032,426,270(1,748,791)13,907,282(551,683)3,175,71216,531,31147.430%1,424,291,3001.161% (A)The category "Other Property" is substantially all commercial/industrial property, plus nomimal amounts of railroad and personal property. (B)The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in commercial-industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area-wide tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This idildidtiihttifthltihllbditibtdbkthtditit Note (E) index is employed in determining what proportion of the valuation shall be distributed back to each assessment district. ( C)The Minnesota Legislature reduced some of the "class rates" used to calculate tax capacity value in fiscal years 1999 and 2001. This reduced the amount of market value that converts to tax capacity value. (D)For fiscal year 2002 and subsequent years, the Minnesota Legislature changed the formula by which state aid to cities was determined, significantly decreasing the annual amount of state aid received by the City of Columbia Heights. Some of this decrease was offset by the relatively higher City direct tax rates after 2001. (E)Certain information on the components of tax capacity prior to 2003 is not available. Source: Anoka County Auditor's Tax Certificate 196 CITY OF COLUMBIA HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES (A) Table 6 Last Ten Fiscal Years City Fiscal Direct School Special Year Rate (A)District 13 CountyDistricts ( C)Total 2000 30.147%66.465%29.426%8.799%134.837% 2001 30.564%47.452%(D)28.125%8.741%114.882% 2002 49.114%(E)38.614%26.432%7.098%121.258% 2003 45.272%20.303%34.761%8.203%108.539% 2004 47.888%22.833%37.617%7.689%116.027% 2005 47.859%19.918%32.722%8.048%108.547% 2006 44.736%19.505%29.875%7.679%101.795% 2007 41.511%17.338%28.626%7.901%95.376% 2008 43.076%16.088%28.927%9.693%97.784% 2009 47.430%23.554%29.861%8.699%109.544% (A)These property tax rates are stated as a percentage of tax capacity value. Refer to Table 5 for tax capacity value. Rates are determined by tax district. Within the Anoka County property tax system, the City is an individual tax district. Thus the City direct rate is an individual rate, and is not comprised of component direct rates. (B)Overlapping rates are those of local and county governments that apply to property owners within the City. Most, but not all, overlapping rates apply to all City property owners. For example, although the school and county property tax rates apply to all City property owners, special district rates apply only to the City property owners whose property is located within each special district's geographic boundaries. (C)Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control District, N.E. Metro School District 916, Rice Creek Watershed District, Anoka County Housing and Redevelopment Authority, Anoka County Regional Rail Authority, County/City Radio, and the Columbia Heights Housing and Redevelopment Authority. (D)For fiscal year 2001 and subsequent years, the Minnesota Legislature enacted several provisions which substantially reduced school district property tax levies, replacing the tax levy funds with state aid. (E)For fiscal year 2002 and subsequent years, the Minnesota Legislature changed the formula by which state aid to cities was determined, significantly decreasing the annual amount of state aid received by the City of Columbia Heights. Some of this decrease was offset by the increase in the City direct tax rate shown above for 2002 and subsequent years. Overlapping Rates (B) 197 - This page intentionally left blank - 198 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 Current Year and Nine Years Ago Percentage Percentage Tax of Total CityTaxable of Total City Capacity Tax CapacityCapacity Tax Capacity Taxpayer Value (A)Rank ValueValue (A)Rank Value Medtronic Inc $230,994 1 1.48%$279,8361 2.98% Centro Bradley SPE 5 LLC 150,450 2 0.96% - N/A 0.00% Stadium Village Properties LLC 112,892 3 0.72% - N/A 0.00% Columbia Park Properties 112,868 4 0.72%120,0265 1.28% Consolidated Realty of Mpls 111,265 5 0.71%103,4097 1.10% Crestview Corporation 107,128 6 0.68%68,94510 0.73% Columbia Heights Center LLC 89,152 7 0.57%114,1006 1.22% New Heights Development LLC 80,796 8 0.52% - N/A 0.00% Lynde Investment Co MN Partnership 79,319 9 0.51% - N/A 0.00% Jeff's Bobby & Steve's Auto World 75,746 10 0.48% - N/A 0.00% Bradley Operating LP N/A0.00%213,8932 2.28% Lake State Properties N/A0.00%128,4283 1.37% Maylan Construction Company N/A0.00%127,8364 1.36% Northern States Power N/A0.00%84,5728 0.90% Minneagasco N/A0.00%70,2419 0.75% Total $1,150,610 7.35%$1,311,286 13.97% Total All Property $15,656,073 $9,381,330 (A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5. Source: Anoka County Auditor's Tax Certificate. 2009 2000 199 CITY OFCOLUMBIA HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Years County FiscalGrossAdjustmentsAdjusted YearTax Levy (A)to Levy (B) Tax Levy 2000$4,300,078$12,925$4,313,003 2001 4,629,920 4,824 4,634,744 2002 4,824,130 10,868 4,834,998 2003 4,817,984 1,805 4,819,789 2004 5,447,260 2,628 5,449,888 2005 6,102,537 152 6,102,689 2006 6,347,537 (160)6,347,377 2007 6,500,613 (189)6,500,424 2008 7,045,370 (74)7,045,296 2009 7,702,363 (161)7,702,202 (A) For years after 2001, the gross tax levy is the levy amount approved annually by City Council resolution prior to January 1 of the fiscal year indicated. For the years 1999-2001, the levy amount approved annually by City Council resolution is the gross levy less the amount shown above as state-paid credit. The tax levies included in this table are only for the City of Columbia Heights taxing district. This table does not include levies by the special taxing district of Columbia Heights HRA. (B) Anoka County adjusts the property tax levy adopted by the City Council for certain items. These are primarily excess tax increment reimbursements and rounding. Abatements or increases of tax to individual taxpayers are not included in these adjustments. ( C) A portion of each gross property tax levy is paid to the City by the State of Minnesota, and referred to as a credit. For the years 1999-2001 this is the "Homestead and Agricultural Credit." For the years after 2001, this is the "Market Value Homested Credit." These credits are reported in the City's financial statements as intergovernmental revenue. The remaining levy collections are remitted to the City by Anoka County. The County collections are the only portion of the property tax levy reported as property tax revenue in the City's financial statements. Source: Anoka County Auditor's Tax Certificate. Also Anoka County Tax Settlement Statements for the City of Columbia Heights. 200 Table 8 Collected Within The Fiscal Year For Which LeviedCollections in Total Collections to Date State-PaidCollections% of AdjustedSubsequent % of Adjusted Credits ( C)by County Tax Levy Years Amount Tax Levy $1,004,122$3,271,43599.13%$62,167$4,337,724100.57% 1,004,368 3,577,11098.85%34,028 4,615,50699.58% 570,151 4,192,05698.49%32,498 4,794,70599.17% 607,323 4,115,96798.00%64,941 4,788,23199.35% 588,271 4,760,78898.15%50,908 5,399,96799.08% 568,479 5,412,17898.00%83,482 6,064,13999.37% 517,322 5,672,90997.52%121,580 6,311,81199.44% 471,660 5,842,54097.14%141,709 6,455,90999.32% 451,019 6,400,60497.25%106,853 6,958,47698.77% 447,755 7,021,60596.98%N/A7,469,36096.98% 201 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities General General General Obligation Obligation Obligation Bonds Repaid Bonds Bonds WithTax Increment Total Fiscal Only WithWith PledgedPledged SpecialRevenueGovernmental Year General TaxesTax IncrementAssessments Bonds Activities 2000 $ - $3,479,721 $860,000 $ - $4,339,721 2001 - 2,619,721 810,000 - 3,429,721 2002 - 2,008,206 705,000 - 2,713,206 2003 - 1,630,288 1,937,828 - 3,568,116 2004 - 3,264,704 1,773,623 - 5,038,327 2005 - 1,985,000 1,604,292 - 3,589,292 2006 - 1,385,000 4,181,569 - 5,566,569 2007 1,000,000 775,000 3,999,296 2,890,000 8,664,296 2008 11,000,000 150,000 4,569,460 2,890,00018,609,460 2009 13,940,000 - 5,194,486 2,881,00022,015,486 (A) Based on population and income data in Table 14. 202 Table 9 Business-Type ActivitiesAll Activities GeneralLiquor ObligationFacility Bonds WithLeaseTotalPercentage Pledged UtilityRevenueBusiness-TypeTotalof PersonalPer RevenuesBondsActivitiesAll DebtIncome (A)Capita (A) $1,935,000$ - $1,935,000$6,274,7211.6%$339 1,825,000 - 1,825,0005,254,7211.3%284 1,650,000 - 1,650,0004,363,2061.1%233 $2,737,172 - 2,737,1726,305,2881.6%337 2,486,377 - 2,486,3777,524,7041.9%405 2,220,708 - 2,220,7085,810,0001.5%318 3,248,431 - 3,248,4318,815,0002.3%482 2,950,7045,040,0007,990,70416,655,0004.3%919 2,590,5405,040,0007,630,54026,240,0006.8%1,448 2,540,5125,040,0007,580,51229,595,9987.6%1,632 203 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE Last Ten Fiscal Years Governmental Activities Subtotal of General GeneralNet GeneralPercentage General Obligation BondsObligation BondsBonded Debtof EstimatedObligation Bonds Fiscal Repaid Only WithWith PledgedRepaid With PropertyWith Pledged Year General TaxesTax IncrementTaxesValue (B)Special Assessments 2000 $ - $3,479,721$3,479,7210.53%$860,000 2001 - 2,619,7212,619,7210.35%810,000 2002 - 2,008,2062,008,2060.24%705,000 2003 - 1,630,2881,630,2880.17%1,937,828 2004 - 3,264,7043,264,7040.30%1,773,623 2005 - 1,985,0001,985,0000.16%1,604,292 2006 - 1,385,0001,385,0000.11%4,181,569 2007 1,000,000 775,0001,775,0000.13%3,999,296 2008 11,000,000 150,00011,150,0000.77%4,569,460 2009 13,940,000 - 13,940,0000.98%5,194,486 (A) Based on population and income data in Table 14. (B) Based on the estimated market value of property in Table 5. The estimated market value of property bears a stong relationship to the debt capacity of the City. It should be noted however, that in the State of Minnesota, property tax revenue is dependent on the tax capacity value of property. Tax capacity value is derived from estimated market value by a set of class rates and other adjustments as determined by the State legislature. The historical relationship between estimated market value and tax capacity value for property in the City is shown in Table 5. 204 Table 10 Business-Type Activities All Activities Subtotal of General Net General Obligation Bonds Bonded Debt Percentage Total With Pledged Repaid With of Personal Net General Per Utility Revenues Non-Tax SourcesIncome (A)Bonded Debt Capita (A) $1,935,000 $2,795,000 0.7%$6,274,721 $339 1,825,000 2,635,000 0.7%$5,254,721 284 1,650,000 2,355,000 0.6%$4,363,206 233 2,737,172 4,675,000 1.2%$6,305,288 337 2,486,377 4,260,000 1.1%$7,524,704 405 2,220,708 3,825,000 1.0%$5,810,000 318 3,248,431 7,430,000 1.9%$8,815,000 482 2,950,704 6,950,000 1.8%$8,725,000 481 2,590,540 7,160,000 1.8%$18,310,000 1,010 2,540,512 7,734,998 2.0%$21,674,998 1,195 205 CITY OF COLUMBIA HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 December 31, 2009 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit (A)Outstanding Applicable (B)Debt Debt repaid with property taxes: Anoka County $183,641,649 4.7267%$8,680,190 Anoka County Railroad Authority 30,990,000 4.7364%1,467,810 Independent School District 13 25,125,000 70.8060%17,790,008 Metropolitan Council 229,420,000 0.4658%1,068,638 Subtotal - overlapping debt 29,006,646 City direct debt - governmental activities 22,015,488 Total direct and overlapping debt $51,022,134 (A)Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the taxpayers of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the taxpayers should be taken into account. (B)The percentage of overlapping debt applicable is estimated using adjusted taxable net tax capacity values of property, which is the tax capacity value after adjustments for captured tax increment value and area-wide allocations (see Table 5.) Applicable percentages were estimated by determining the portion of each governmental unit's tax capacity value that is within the City's boundaries and dividing it by each unit's total tax capacity value. Source: Anoka County Auditor's Tax Certificate 206 CITY OF COLUMBIA HEIGHTS, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2009 Taxable market value of property $1,420,604,300 Debt limitation percentage (A)3% Debt limit 42,618,129 Net debt applicable to limit (B)13,940,000 Legal debt margin $28,678,129 Legal debt margin as a percentage of limit 67.29% Legal Debt Margin Calculation for Fiscal Years 1998 Through 2008 Legal Debt Net Debt Legal Margin as a Fiscal Debt Applicable to Debt Percentage Year Limit Limit Margin of Debt Limit 2000 $13,156,094 $ - $13,156,094 100.00% 2001 14,386,974 - 14,386,974 100.00% 2002 15,506,730 - 15,506,730 100.00% 2003 17,102,916 - 17,102,916 100.00% 2004 19,133,440 - 19,133,440 100.00% 2005 21,831,836 - 21,831,836 100.00% 2006 24,490,232 - 24,490,232 100.00% 2007 27,255,660 1,000,000 26,255,660 96.33% 2008 43,388,271 11,000,000 32,388,271 74.65% (A)M.S.A. Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in Sections 475.51 to 475.74, "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 3% of the market value of taxable property in the municipality." (B)M.S.A. Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after deducting from its gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate of the principal of the following: 1.Obligations issued for improvements which are payable wholly or partly from the proceeds of special assessments levied upon property specially benefited thereby, including those which are general obligations of the municipality issuing them, if the municipality is entitled to reimbursement in whole or in part from the proceeds of the special assessments. 2.Warrants or orders having no 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. 207 CITY OF COLUMBIA HEIGHTS, MINNESOTA PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT Table 13 Last Ten Fiscal Years Fiscal Year 2000 - 2007 2008 2009 Economic Development Authority Tax Increment Revenue Bonds Series 2007: Tax increment revenue from applicable parcels $ - $243,159 $267,142 Intergovernmental: Market Value TIF credit - 14,002 19,554 Net available revenue $0 $257,161 $286,696 Debt service: Principal - - 9,000 Interest - 158,325 152,363 Total debt service $0 $158,325 $161,363 Coverage N/A 162%178% EconomicDevelopmentAuthorityEconomic Development Authority Lease Revenue Bonds Series 2007B: Annual appropriation of liquor revenues $ - $235,340 $247,171 Investment income - 8,638 71 Issuance costs and administration (expense) - (10,062)(6,866) Net available revenue $0 $233,916 $240,376 Debt service: Principal - - - Interest - 208,264 240,305 Total debt service $0 $208,264 $240,305 Coverage N/A 112%100% Note: Details regarding the City's outstanding debt can be found in Note 6 of the financial statements. 208 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14 Last Ten Fiscal Years Per Capita Fiscal Personal Personal Unemployment Year Population Income Income Rate 2000 18,520 $395,735,360 $21,368 2.70% 2001 18,529 395,927,672 21,368 3.60% 2002 18,698 399,538,864 21,368 4.50% 2003 18,698 399,538,864 21,368 4.70% 2004 18,600 397,444,800 21,368 4.40% 2005 18,261 390,201,048 21,368 3.80% 2006 18,288 390,777,984 21,368 3.90% 2007 18,124 387,273,632 21,368 4.60% 2008 18,137 387,551,416 21,368 5.50% 2009 18,137 387,551,416 21,368 8.50% Sources are as follows: Population: Data for the years 2000-2002, 2004-2008 provided by the Metropolitan Council. Data for the years 2003 and 2009 are not available. These years are estimated as equal to next available prior year. Per Capita Income: All years estimated as equal to per capita income reported in the 2000 U.S. Census. Total Personal Income: Estimated as per capita income for the year 2000 multiplied by population figure for each year. Unemployment Rate: Provided by MN Department of Employment and Economic Development for Anoka County. Rates are not compiled for inidividual communities within counties. 209 - This page intentionally left blank - 210 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL EMPLOYERS Table 15 Current Year and Nine Years Ago Percentage of Percentage of Total Anoka Total Anoka County (A)County (A) Principal Employers Within CityEmployeesRankEmploymentEmployeesRankEmployment Burlington Northern Railroad 65010.37% - - - Independent School District 13 (B)39520.22%530 10.29% Crestview Corporation 25230.14%170 40.09% City of Columbia Heights 20240.11%198 30.11% Unique Thrift Store 8250.05%unavailableunavailableunavailable Columbia Park Clinic 7360.04% - - - Rainbow Foods 6770.04%130 50.07% Invest Cast 5680.03%50 90.03% Bobby & Steve's Auto World 5290.03% - - 0.00% La Casita Mexican Restaurant 50100.03% - - - Medtronic Inc - - - 275 20.15% SIS Enterprises Inc - - - 90 60.05% K-Mart - - - 80 70.04% LTA Corporation - - - 60 80.03% Total 1,879 1.07%1,583 0.88% (A) Employment data is not compiled for individual cities within Minnesota counties. (B) Data shown for Independent School District 13 represents only those employed within the City of Columbia Heights. Sources: 2009 data estimates from April 2009 Minnesota State Business Directory and written and telephone survey, with data for the City of Columbia Heights employees adjusted to actual data in Table 16. 2000 data estimates from Minnesota Manufacturers Register, 1998 edition, and phone survey of individual employers listed March 1999, with data for the City of Columbia Heights employees adjusted to actual data in Table 16. 2009 2000 211 CITY OF COLUMBIA HEIGHTS, MINNESOTA CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2000 2001 2002 2003 General government Mayor/council 5 5 5 5 Administration 7 7 7 5 Finance 13 13 13 13 Public safety: Police 37 35 35 31 Fire 34 34 34 40 Public works 20 20 20 17 Culture and rfecreation: Library 21 19 19 19 Parks 5 5 5 5 Recreation 11 13 13 13 Community development 10 7 7 7 Water 4 4 4 4 Sewer 4 4 4 4 Refuse - - - - Storm sewer - - - - Liquor 27 28 28 35 Total 198 194 194 198 Source: Organizational Chart in the City of Columbia Heights CAFR. Note: The above table shows the distribution of all employees by head count (including full-time, part-time and paid on-call), by function. This bears a strong relationship to the distribution of employee costs across functions. However, many employees provide services to more than one function, and employee costs are charged to each function based on the services received by each function. Employees as of December 31, 212 Table 16 200420052006200720082009 555555 554445 121212131314 30 30 31 31 34 35 39 35 36 33 29 31 18 16 17 16 17 18 19 21 22 22 25 21 555555 13 15 16 16 17 14 677766 444544 444433 - - - - - - - - - - 1 1 37 37 37 42 38 40 197 196 200 203 201 202 Employees as of December 31, 213 CITY OF COLUMBIA HEIGHTS, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 200020012002 General government: Resolutions approved by City Council947770 Ordinances adopted by City Council21134 Public safety: Police: Part I crimes (B)1,068971992 Part II crimes (B)2,4062,6703,142 Fire: Emergency medical calls (B)1,595 1,607 1,660 Fire calls (B)472 422 4,777 Inspections & Related Actions (B)3,999 3,495 3,562 Public works: Street paving and patching (tons of asphalt)not avail not avail not avail Street sweeping (tons of debris)840 708 990 Trees removed 157 159 175 Culture and recreation: Library: Items in collection 70,449 72,324 71,439 Circulation 125,098 119,555 119,082 Reference inquiries 16,472 14,447 14,383 Parks and recreation: Athletics participants (C)2,306 2,792 3,015 Other programs, estimated attendance (D)10,000 10,000 9,000 Number of paid room rentals 236 238 223 Community development: Number of business licenses issued 399 378 313 Function/Program Fiscal Year Number of building permits issued (E)1,340 1,235 1,216 Construction value of permits issued $6,767,183 $12,547,885 $8,362,360 Water: Consumption (thousands of gallons)558,355 557,934 566,169 Sewer (sanitary): Wastewater (thousands of gallons, 12 months ended June 30)534,600 559,820 544,190 Miles of line cleaned/rodded/root-sawed 9 6 7 Refuse: Refuse (tons)8,069 8,202 8,241 Recycling (tons)1,967 2,045 1,915 Yardwaste (tons)741 794 824 Storm sewer: No operating indicators available not avail not avail not avail Liquor: Number of units sold not avail not avail not avail (A)In 2006, the City significantly increased enforcement of ordinances concerning nuisance/hazardous conditions of properties within the City. Resolutions per year sharply increased, given one resolution per significant enforcement action. (B)Public safety operating indicators include services provided to the City of Hilltop under contractual agreements. The City of Hilltop is completely encircled by the City of Columbia Heights and has a population of 766 (based on 2000 census information). (C)This operating indicator includes duplicate counts for participation in more than one team/league by some persons. (D)This operating indicator includes duplicate counts for attendance at more than one program by some persons. It is rounded to the nearest thousand attendees based on review of attendance data. (E)This operating indicator includes inspection permits issued for new construction, building alteration/addition, plumbing, heating, street excavation and sign installation. (F)The construction value of building permits issued in 2004 includes $30,573,000 for a water filtration plant owned and operated by the City of Minneapolis within the City of Columbia Heights. Sources: Various City departments. 214 Table 17 2003 2004 2005 2006 2007 2008 2009 57 87 92 234(A)198(A)247(A)170 1972014122612 1,056 1,229 1,280 1,167 1,246 1,098 882 3,225 3,435 3,496 3,184 3,144 2,966 1,275 1,702 1,653 1,873 1,806 1,888 2,093 1,694 380 483 581 387 445 385 660 4,616 2,077 2,379 3,709 4,603 6,955 3,724 1,220 1,271 409 710 1,910 1,415 1,033 640 1,064 658 637 648 420 581 143 261 296 188 357 175 121 71,409 73,105 68,226 70,354 71,594 72,420 69,702 116,917 116,533 115,598 119,593 125,222 126,271 120,705 18,427 14,670 17,225 15,106 13,715 13,793 17,771 2,558 2,139 1,988 1,654 1,537 1,510 1,602 9,000 9,000 9,000 9,000 8,000 8,000 8,000 132 134 164 191 185 190 210 295 307 327 342 306 363 379 Fiscal Year 1,176 1,159 1,304 1,701 1,313 1,113 1,187 $11,056,530$50,322,414(F)$13,041,878$26,798,827$22,230,118$21,917,792$13,376,732 579,322 538,358 527,621 529,581 538,844 518,791 518,299 556,900 526,010 514,810 536,920 495,580 511,090 437,520 17 28 28 39 27 29 39 7,670 8,348 8,863 8,397 6,587 7,323 7,239 1,873 1,783 1,863 1,721 1,522 1,318 1,036 809 862 892 645 654 727 773 not avail not avail not avail not avail not avail not avail not avail not avail not avail 798,900 758,000 768,000 920,121 1,029,139 215 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2000 2001 2002 2003 General government: City hall square footage (A)28,530 28,530 28,530 28,530 Public safety: Police Stations (A)1 1 1 1 Fire Stations (A)1 1 1 1 Public works: Trunk highway miles 3 3 3 3 County road miles 6 6 6 6 City street miles 62 62 62 62 Alley miles 19 19 19 19 Culture and recreation: Libraries 1 1 1 1 Parks and recreation: Parks 13 13 13 13 Playgrounds 11 11 11 11 Murzyn Hall square footage 22,000 22,000 22,000 22,000 Community development: Senior high-rise apartments 145 145 145 145 Water: Watermain miles 66 66 66 66 Sewer: Sanitary sewer miles 59 59 59 59 Refuse: Recycling centers 1 1 1 1 Storm sewer: Storm sewer miles 34 34 34 34 Liquor: Stores owned 1 1 1 1 Stores leased 2 2 2 2 (A)Square footage reported for City hall includes the City's police and fire stations. (B)Murzyn Hall is a banquet facility and community center located in the City's largest park. Sources: Various City departments. Fiscal Year 216 Table 18 2004 2005 2006 2007 2008 2009 28,530 28,530 28,530 28,530 28,530 28,530 111111 111111 333333 666666 62 62 62 62 62 62 19 19 19 19 19 19 111111 13 13 13 13 13 13 11 11 11 11 11 11 22,000 22,000 22,000 22,000 22,000 22,000 145 145 145 145 145 145 66 66 66 66 66 66 59 59 59 59 59 59 111111 34 34 34 34 34 34 111133 2222 - - Fiscal Year 217 - This page intentionally left blank - 218 IV. OTHER REQUIRED REPORTS SECTION 219 - This page intentionally left blank - 220 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2009 2009-1 Recreational Revenue Documentation Criteria: Certain documentation needs to be created in the City’s files to substantiate that proper procedures have been followed when recording recreational revenue. Condition: Documentation is not created that provides for verifying the completeness of recreation revenue. Cause: Not determinable. Effect: The City does not maintain an audit trail regarding recreational revenue. Recommendation: In prior years, the City attempted to change procedures to enable recreation revenue to be reconcilable. However, those changes did not resolve the problem as planned. We suggest the City develop procedures that will allow for proper reconciliation. Views of Responsible Officials and Corrective Action Plan: In 2010, staff will revise procedures to address this matter. 225 CITY OF COLUMBIA HEIGHTS, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2009 2009-2 Adopting Resolutions Condition and Criteria: Certain resolutions adopted by the City Council contain financial related information and in several instances, this financial information is referred to as an attachment. We noted several instances where the referred attachment was not maintained with the official City records. Cause: See condition. Effect: By not including the specific information in the body of the resolution, there is not a sufficient “audit trail,” and there is an increased risk that errors in implementation of the resolution may occur and not be detected. Recommendation: We recommend the City strengthen its official record by including all specific information in the body of the resolution. Views of Responsible Officials and Corrective Action Plan: In 2010, staff will revise procedures to address this matter. 226 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, 2009 Line Item Account Description Total Projects Assets: Current assets: 111 Cash - unrestricted $936,810 114 Cash - tenant security deposits 15,014 100 Ttlh 951824100 Total cash 951,824 Accounts and notes receivable: 122 Accounts receivable - HUD other projects20,012 126 Accounts receivable - miscellaneous1,460 126 Accounts receivable - tenants1,228 129 Accrued interest receivable 2,500 120 Total receivables, net of allowance25,200 150 Total current assets 977,024 Noncurrent assets: Capital assets: 161 Land 177,375 162 Buildings 2,906,848 163 Furniture, equipment and machinery - dwellings297,466 164 Furnitureequipmentandmachinery -administration 5144164 Furniture, equipment and machinery - administration 5,144 166 Less: accumulated depreciation (2,276,011) 167 Construction in progress 19,181 160 Total capital assets, net of accumulated depreciation 1,130,003 180 Total noncurrent assets 1,130,003 190 Total assets 2,107,027 Liabilities:Liabilities: Current liabilities: 312 Accounts payable <= 90days 30,173 333 Accounts payable - other governments 20,349 341 Tenant security deposits 15,014 342 Deferred revenue 4,369 345 Other current liabilities 45,424 310 Totalcurrentliabilities 115,329310 Total current liabilities 115,329 350 Total noncurrent liabilities 0 300 Total liabilities 115,329 Net assets: 508.1 Investment in capital assets, net of related debt 1,130,003 512.1 Unrestricted 861,695 513 Total net assets $1,991,698513 Total net assets $1,991,698 229 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, 2009 Public HousingPublic Housing OperatingCapital Fund Operating Capital Fund Line SubsidyProgram ItemAccount Description14.85014.872Total Projects Revenue: 703 Net tenant rental revenue$313,848$ - $313,848 704 Tenant revenue - other11,923 - 11,923 706 HUD PHA grants206,62168,381275,002 711 Investment income - unrestricted12,600 - 12,600 700 Total revenue544,992 68,381 613,373 ,,, Expenses: 911 Administrative salaries23,760 - 23,760 912 Auditing fees1,598 - 1,598 913 Outside management fees154,824 - 154,824 914 Advertising and marketing527 - 527 916 Other operating - administrative3,800 - 3,800 917 Legal expense2,523 - 2,523 919 Other expense 3,612 - 3,61299Oteepese3,6 3,6 931 Water 9,183 - 9,183 932 Electricity 43,119 - 43,119 933 Gas 49,034 - 49,034 936 Sewer 6,003 - 6,003 938 Other utilities expense 7,828 - 7,828 942 Ordinary maintenance and operations - materials and other 20,953 - 20,953 943 Ordinary maint. and operations contracts - HVAC 12,125 - 12,125 943 Ordinary maint. and operations contracts - snow removal 1,218 - 1,218 943 Ordinarymaintandoperationscontractselevator 8431 8431943 Ordinary maint. and operations contracts - elevator 8,431 - 8,431 943 Ordinary maint. and operations contracts - grounds 4,146 - 4,146 943 Ordinary maint. and operations contracts - unit turnaround 11,043 - 11,043 943 Ordinary maint. and operations contracts - electrical 1,509 - 1,509 943 Ordinary maint. and operations contracts - plumbing 7,213 - 7,213 943 Ordinary maint. and operations contracts - extermintion 586 - 586 943 Ordinary maint. and operations contracts - janitorial 5,881 - 5,881 943 Ordinary maint. and operations contracts - routine maintenance 2,467 - 2,467 943 Ordinary maint. and operations contracts - miscellaneous 1,077 - 1,077yp 952 Protective services 11,342 - 11,342 961 Insurance premiums 18,832 - 18,832 962 Other general expenses 1,601 - 1,601 963 Payments in lieu of taxes 21,762 - 21,762 969 Total operating expenses 435,997 0 435,997 974 Depreciation 116,233 - 116,233 900 Total expenses 552,230 0 552,230 ifi1001Operating transfers in 68,381 - 68,381 1002Operating transfers out - (68,381)(68,381) 1010 Total other financing sources (uses)68,381 (68,381)0 1000Excess (deficiency) of revenue over expenses $61,143 $0 $61,143 Memo account information: 1103 Beginning equity $1,930,555 $ - $1,930,555 1120 Uihilbl 1212 12121120 Unit months available 1,212 - 1,212 1121 Number of unit months leased 1,204 - 1,204 230 CITY OF COLUMBIA HEIGHTS, MINNESOTA U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINANCIAL DATA SCHEDULE - STATEMENT AND CERTIFICATION OF ACTUAL MODERNIZATION COSTS As of And For The Year Ended December 31, 2009 FY 2007 FY 2008 FY 2009 FY 2009 MN 46P10550107MN 46P10550108MN 46P10550109MN 46S10550109 A.The actual modernization costs are as follows: Funds approved $106,482 $104,250 $112,026 $131,959 Funds (expended)(106,482)(65,532) - (7,631) Excess of funds approved (expended)$0 $38,718 $112,026 $124,328 Funds advanced - HUD CFP Grants $106,482 $53,151 $0 $0 Funds (expended): In prior years (106,482)(4,782) - - In current year - (60,750) - (7,631) Excess of funds advanced (expended)$0 ($12,381)$0 ($7,631) B.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. C.All modernization costs have been paid and all related liabilities have been discharged through payment. 231 - This page intentionally left blank - 232