HomeMy WebLinkAbout2011 CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
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I. INTRODUCTORY SECTION
Principal City Officials 3
Organizational Chart 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 Assets Statement 130
Statement of Activities Statement 232
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 334
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 436
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 539
Statement of Net Assets - Proprietary Funds Statement 640
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds Statement 742
Statement of Cash Flows - Proprietary Funds Statement 844
Statement of Fiduciary Net Assets - Fiduciary Funds Statement 948
Notes to Financial Statements 49
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 1080
Schedule of Funding Progress for the Retiree Health Plan Statement 1182
Budgetary Comparison Schedule - Note to RSI 83
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Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 1288
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 1389
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 1494
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 1596
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Cable Television Fund Statement 1698
Actual - Police Forfeiture Fund Statement 1799
Budget and Actual - Police Community Programs Fund Statement 18100
Actual - Police Grants Fund Statement 19101
Budget and Actual - Library Fund Statement 20102
Actual - After School Programs Fund Statement 21103
Actual - Recreation Contributed Projects Fund Statement 22104
Actual - Contributed Projects - Other Fund Statement 23105
Actual - Special Projects Fund Statement 24106
Budget and Actual - Community Development Fund Statement 25107
Actual - Anoka County Comm Dev Programs Fund Statement 26108
Economic Development Authority (Component Unit):
Budgetary Comparison Schedule - Administration Fund Statement 27109
Housing and Redevelopment Authority (Component Unit):
Combining Balance Sheet Statement 28110
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance Statement 29111
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Parkview Villa North Fund Statement 30112
Budget and Actual - Parkview Villa South Fund Statement 31113
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Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 32116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 33118
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 34123
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 35124
Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Assets Statement 36126
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 37127
Subcombining Schedule of Cash Flows Statement 38128
Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 39129
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 40130
Subcombining Schedule of Cash Flows Statement 41131
Refuse Utility Fund:
Subcombining Schedule of Net Assets Statement 42132
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 43133
Subcombining Schedule of Cash Flows Statement 44134
Storm Sewer Utility Fund:
Subcombining Schedule of Net Assets Statement 45135
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 46136
Subcombining Schedule of Cash Flows Statement 47137
Liquor Fund:
Subcombining Schedule of Net Assets Statement 48139
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 49140
Subcombining Schedule of Cash Flows Statement 50142
Internal Service Funds:
Combining Statement of Net Assets Statement 51146
Combining Statement of Revenues, Expenses and Changes in Fund
Net Assets Statement 52147
Combining Statement of Cash Flows Statement 53148
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Central Garage Fund:
Subcombining Schedule of Net Assets Statement 54149
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 55150
Subcombining Schedule of Cash Flows Statement 56151
Information Systems Fund:
Subcombining Schedule of Net Assets Statement 57152
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 58153
Subcombining Schedule of Cash Flows Statement 59154
Insurance Fund:
Subcombining Schedule of Net Assets Statement 60155
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 61156
Subcombining Schedule of Cash Flows Statement 62157
Compensated Absences Fund:
Subcombining Schedule of Net Assets Statement 63158
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Assets Statement 64159
Subcombining Schedule of Cash Flows Statement 65160
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 66162
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component Table 1 166
Changes in Net Assets Table 2 168
Fund Balances - Governmental Funds Table 3 172
Changes in Fund Balances - Governmental Funds Table 4 174
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of All Taxable Property Table 5 178
Direct and Overlapping Property Tax Rates Table 6 179
Principal Property Taxpayers Table 7 181
Property Tax Levies and Collections Table 8 182
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Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 184
Ratios of Outstanding Net General Bonded Debt by Type Table 10 186
Direct and Overlapping Governmental Activities Debt Table 11 188
Legal Debt Margin Information Table 12 189
Pledged Revenue Coverage Non-obligation Debt Table 13 190
Demographic and Economic:
Demographic and Economic Statistics Table 14 191
Principal Employers Table 15 193
Operating Information:
City Government Employees by Function/Program Table 16 194
Operating Indicators by Function/Program Table 17 196
Capital Asset Statistics by Function/Program Table 18 198
IV. OTHER REQUIRED REPORTS SECTION
Report on Compliance with Minnesota Legal Compliance Audit Guide for Political Subdivisions 203
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 205
Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major
Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 207
Schedule of Expenditures of Federal Awards 210
Schedule of Findings and Questioned Costs 212
Report on Supplementary Information - Financial Data Schedule 215
U.S. Department of Housing and Urban Development:
Financial Data Schedule 216
Financial Data Schedule - Statement and Certification of Actual Modernization Costs 218
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2011
Name Official Title
Mayor and Council:
Gary L. Peterson Mayor
Tammera Ericson Diehm Councilmember
Donna Schmitt Councilmember
Bruce Nawrocki Councilmember
Robert A. Williams Councilmember
Administration:
Walter Fehst City Manager
Linda Magee Assistant to City Manager
Joseph Kloiber 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
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City of Columbia Heights
Organizational Chart
2011
Mayor:
Gary L. Peterson
Council members:
Tammera Diehm
Bruce Nawrocki
Donna Schmitt
Robert Williams
City Manager:
Walter Fehst
Commissions & Boards:
Charter
EDA
HRA
Traffic
Telecommunications
Planning & Zoning
Park & Recreation
Library
ADMINISTRATION
Assistant to the City Manager /
Human Resources Director:Linda Magee
City Clerk
Administrative Assistant – Human Resources
Imaging Technician (PT)
Facility Maintenance Supervisor
Custodian I (4 PT)
Cable Intern (PT)POLICE (Administered by Mayor)
Police Chief: Scott Nadeau
Office Supervisor
Police Captain
Sergeants (4)
Corporals (2)
Patrol Officers (19)
Community Service Officers (1 FT) (2 PT)
Reserves
Police IS Specialist
Secretary II-A (2)
Clerk Typist
FIRE/EMERGENCY MANAGEMENT
Fire Chief:Gary Gorman
Assistant Fire Chief
Fire Captains (3)
Secretary II (PT)
Clerk Typist II (PT)
Firefighters (3)
On-Call Firefighters (22)
PUBLIC WORKS
Public Works Director/City Engineer: Kevin Hansen
Secretary II-A
Assistant City Engineer
Administrative Assistant
Assessing Clerk (PT)
Engineering Technician IV (2)
Public Works Superintendent
Foreman (Parks, Sewer & Water, Streets) (3)
Maintenance Worker (15)
Shop Foreman
Maintenance III -Mechanic
Maintenance III -Bodyman/Painter
FINANCE
Finance Director/Treasurer:Joseph Kloiber
Secretary II
Assistant Finance Director
Accounting Coordinator
Payroll Accountant
Budget Coordinator
Accounting Clerk II: Utility
Accounting Clerk I: Utility
Accounting Clerk I (PT)
Receptionist/Switchboard Operator
Meter Reader (PT)
Liquor Operations Manager
Assistant Liquor Operations Manager (5)
PT Store Supervisor (5)
Retail Clerk (28 PT)
IS Director
Assistant IS Director
IS Technician
COMMUNITY DEVELOPMENT
Community Development Director:Scott Clark
Assistant Community Development Director
Building Official
Planner
Secretary II: Permits
LIBRARY
Library Director:M. Rebecca Loader
Clerk-Typist II (2)
Library Clerk (1 PT)
Library Supervisor (4 PT)
Page (10 PT)
Library Aide (PT)
Adult Services Librarian
Children's Librarian
RECREATION
Recreation Director: Keith Windschitl
Clerk/Typist II
Senior Citizen Coordinator
Program Coordinator
Recreation Clerk (PT)
Custodian II (10 PT)
Custodian I (PT)
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Service Is Our Business
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
City of Columbia Heights
Finance Department
590 40th Avenue N.E. Columbia Heights, MN 55421-3878 Office (763) 706-3600 TDD (763) 706-3692 Fax (763) 706-3637
June 28, 2012
To the Citizens of the City of Columbia Heights,
Mayor, Council Members, and City Manager
The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year
ended December 31, 2011, is hereby submitted. The City’s management assumes responsibility
for both the completeness and reliability of the information contained in this report, based on a
comprehensive framework of internal control that it has established for this purpose. Because
the cost of internal control should not exceed its anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
HLB Tautges Redpath, Ltd., Certified Public Accountants, have issued an unqualified (“clean”)
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2011. Their independent auditors’ report is located at the front of the financial section of this
report.
State law requires Minnesota cities to issue by June 30th of each year a complete set of audited
financial statements for the preceding fiscal year ended December 31st. In addition, state law
requires that Minnesota cities undergo an annual Minnesota Legal Compliance Audit. During the
year ended December 31, 2011, the City expended more than $500,000 in federal grant awards.
The City was therefore required to have an audit in conformity with the provisions of the Single
Audit Act of 1984 and the United States Office of Management and Budget Circular A-133 for
2011. Information related to the Minnesota Legal Compliance Audit and the Single (A-133)
Audit, including the Schedule of Expenditures of Federal Awards is included in the Other
Required Reports Section at the back of this report.
Generally accepted accounting principals require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement the MD&A and should be read in conjunction with it. The City of Columbia
Heights’ MD&A can be found immediately following the report of the independent auditors.
PROFILE OF THE GOVERNMENT
The City of Columbia Heights, a suburb located north of the City of Minneapolis in Anoka
County in east-central Minnesota, was originally incorporated as a village in 1898. In 1921,
pursuant to the adoption of a home rule City Charter by the qualified voters of the City, a
council-manager form of government, was instituted.
Information Systems
Financial Reporting
Accounts Payable
Utility Billing
Payroll
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The City Council consists of a Mayor and four Council Members. All are elected at-large, on a
non-partisan basis. The Mayor serves a two-year term and the Council Members serve four-year
terms. The City Manager is appointed by the City Council. The City covers an area of 3.52
square miles and currently has a population of 19,496. The City is empowered to levy a tax on
both real and personal property within its boundaries.
All City funds, departments, commissions and other organizations for which the City of
Columbia Heights is financially accountable, including all component units, are presented within
the Comprehensive Annual Financial Report. The Columbia Heights Housing and
Redevelopment Authority (HRA) and the Columbia Heights Economic Development Authority
(EDA) are included in the reporting entity as blended component units of the City of Columbia
Heights due to the fact that the governing boards are substantively the same and the City is in a
relationship of financial benefit/burden with the authorities.
The City provides a full range of services to its citizens. These services include, but are not
limited to, police and fire protection; water and sanitation services; the construction and
maintenance of highways, streets, and infrastructure; library; recreational facilities; and general
administrative services.
LOCAL ECONOMY
The City is located within the varied and stable economic base of the Minneapolis-Saint Paul
greater metropolitan area, which is a major center for both the state and the Upper-Midwest. As
such, there has been a relatively stable level of employment for City residents and this is
expected to continue. In 2011, the largest employers located within the boundaries of the City
included Independent School District 13 and one division of Medtronic Inc., a medical device
manufacturer.
With its close proximity to the Minneapolis downtown area (4 miles), the City of Columbia
Heights offers opportunities for many people to live close to where they work, and this has
helped maintain demand for housing in the City. However, as an older, fully developed, inner-
ring suburb of the City of Minneapolis, the management and residents of the City of Columbia
Heights are faced with the problems of an aging infrastructure, crime, and dependency on state
aid to supplement local revenues. The recent sharp rise nation-wide in home mortgage
foreclosures has also been reflected locally. The City Council and the City’s management are
taking a proactive approach to dealing with these concerns, and they currently have a number of
initiatives in progress to address them. Some of these are described below.
LONG-TERM FINANCIAL PLANNING
The City has a planned Street Rehabilitation Program including, as needed, water mains, sanitary
sewer and storm sewer improvements. The program divides the City into seven street
rehabilitation zones and calls for approximately one zone to be rehabilitated every one to two
years. A portion of cost of street rehabilitation is charged to the benefiting properties in the form
of special assessments. In some cases, the City issues bonds to initially finance the project,
repaying the bonds with special assessments collected over a number of years.
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Historically, local government aid (LGA) from the State of Minnesota has been a key component
of the City’s operating budget. In recent years, the amount provided by the state has been
unpredictable, significantly reduced, and sometimes reduced retroactively. To provide for more
stable operations, the City’s management has developed a multi-year financial plan that
significantly reduces the cities dependency on state aide for operation by 2013. The current City
Council has reached consensus of opinion in support of the plan. Implementation of this plan is
of course dependent on the annual property tax levy and operating budget actually adopted by
the City Council each year.
RELEVANT FINANCIAL POLICIES
The City Council has formally adopted a fund balance policy for the General Fund and the
combined Library Fund, Capital Building Library Fund (non-major funds). The policy
establishes a year end target of unassigned fund balance for the General Fund and spendable
fund balance for the combined Library and Capital Building Library funds equal to at least 45%
of the next year’s budgeted expenditures. In 2011, both funds met this goal.
The City’s policy is to budget and recognize license and permit revenues of the community
development function, such as building permit revenue, in the Community Development Fund, a
non-major special revenue fund. License and permit revenues of other functions are budgeted
and recognized in the general fund. For this reason, license and permit revenues in the general
fund are often lower than other comparable Minnesota Cities, which more commonly budget for
and recognize all license and permit revenues in the general fund.
CURRENT MAJOR INITIATIVES
As in much of the nation, home prices in the City have dropped sharply over the last few years.
Given this, plus the age of the City’s housing stock, the Economic Development Authority has
implemented a program of purchasing and demolishing substandard residential property to create
an inventory of redevelopment property available for resale when the housing market recovers.
As of December 31, 2011, twenty-nine properties had been acquired under this program. For the
six properties purchased in 2011, all of the buildings on these properties will be demolished.
AWARD AND AKNOWLEDGEMENTS
The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement
for Excellence in Financial Reporting to the City of Columbia Heights, Minnesota for its
Comprehensive Annual Financial Report for the year ended December 31, 2010. The Certificate
of Achievement is a prestigious national award that recognizes conformity with the highest
standards for preparation of state and local government financial reports. In order to be awarded
a Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report whose contents conform to program
standards. The CAFR must satisfy both generally accepted accounting principles and applicable
legal requirements.
7
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to the GFOA.
The preparation of the Comprehensive Annual Financial Report on a timely basis was made
possible by the dedicated service of the entire staff of the Finance Department. Each member of
the department has our sincere appreciation for the contributions made in the preparation of this
report.
In closing, without the leadership and support of the City Manager and City Council, preparation
of this report would not have been possible.
Sincerely,
Joseph P. Kloiber
Finance Director
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II. FINANCIAL SECTION
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Columbia Heights, Minnesota (the City), we offer readers of the City
of Columbia Heights’ financial statements this narrative overview and analysis of the financial
activities of the City for the fiscal year ended December 31, 2011. We encourage readers to consider
the information presented here in conjunction with additional information that we have furnished in
our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at December 31, 2011, by $68,058,674 (net assets). Of
this amount, $27,037,326 or 40% may be used to meet the City’s ongoing obligations to citizens and
creditors.
During 2011, the City’s total net assets increased by $1,395,090 or 2% from the prior year.
Governmental activities provided $972,153 of this increase, and the City’s business-type activities
provided the remaining $422,937.
As of December 31, 2011, the combined fund balances of the City’s governmental funds were
$24,436,268. This is a decrease of $1,002,840 or 4% from the prior year. Approximately 90 percent
of this amount, $22,002,337 is available for use within the City’s constraints and policies.
As of December 31, 2011, unassigned fund balance for the General fund was $5,655,693 (59 percent)
of the total subsequent year General fund expenditures.
During 2011, the City’s total bonded debt decreased by $2,632,998 to an end of year total of
$25,645,000. This decrease was from the payment of principal due in the current year and the early
payoff of the General Obligation Improvement/Revenue 2003A bonds.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
15
Management’s Discussion and Analysis
The statement of activities presents information showing how the City’s net assets changed during
the most recent fiscal year. All changes in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation and community development. The
business-type activities of the City include water, sanitary sewer, refuse, storm sewer and liquor
operations.
The government-wide financial statements are presented as Statements 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and change in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the governmental
fund statement of revenues, expenditures, and changes in fund balances for each major governmental
fund. The major governmental funds in 2011 are as follows:
• General Fund
• 2008A Taxable G.O. Housing Improvement Area Bonds Fund
• Public Safety Center Capital Building Fund
• Municipal State Aid Street Fund
• Capital Improvements General Government Buildings Fund
16
Management’s Discussion and Analysis
• Capital Equipment Replacement General Government Fund
• Capital Improvements-PIR Fund
• Capital Improvements Development Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general and certain special revenue funds listed
in the notes to the financial statements. A budgetary comparison statement has been provided for
these funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are presented as Statements 3 through 5 of this
report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The City uses enterprise funds to account for its water, sewer, refuse, storm
sewer, and liquor operations. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the City’s various functions. The City uses internal service funds to
account for its central garage, information systems, insurance, and compensated absences services.
Because the central garage, insurance and compensated absences services predominately benefit
governmental rather than business-type functions, they have been included within governmental
activities in the government-wide financial statements. And also, because the information systems
services predominately benefit the business-type functions, it has been included within the business-
type activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for the
water, sewer, refuse, storm sewer and liquor operations, all of which are considered to be major
funds of the City. Conversely, the internal service funds are combined into a single, aggregated
presentation in the proprietary fund financial statements. Individual fund data for the internal service
funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements are presented as Statements 6 through 8 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial
statements because the resources of those funds are not available to support the City’s own programs.
The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement is presented as Statement 9 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
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Management’s Discussion and Analysis
Other information. Required supplementary information on funding for retiree health benefits is
presented immediately following the budgetary comparison referred to above. The combining
statements referred to earlier in connection with non-major governmental funds and internal service
funds are presented immediately following the schedule of funding progress for the retiree health
plan. Combining and individual fund statements and schedules are presented as Statements 12
through 66 of this report.
Government-wide Financial Analysis
As noted above, net assets may serve over time as a useful indicator of a government’s financial
position. At December 31, 2011, the City’s assets exceeded its liabilities by $68,058,674.
$37,426,428 or 55% of the City’s net assets, reflects its investment in capital assets (e.g. land,
buildings, equipment and infrastructure) less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. It should be noted that, although net assets invested in
capital assets are reported net of related debt, the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
In addition, a portion of the City’s net assets represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets, $27,037,326
or 40%, may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2011, the City is able to report positive balances in all three categories of net assets,
both for the City as a whole, as well as for its separate governmental and business-type activities.
2011 2010 2011 2010 2011 2010
Assets:
Current and other assets $31,471,777$32,269,084$8,270,979$8,480,960$39,742,756$40,750,044
Capital assets 43,322,05642,939,58414,906,22414,522,56158,228,28057,462,145
Total assets $74,793,833 $75,208,668 $23,177,203 $23,003,521 $97,971,036 $98,212,189
Liabilities:
Current liabilities $2,853,908$2,753,559$1,685,835$1,027,725$4,539,743$3,781,284
Noncurrent liabilities 19,512,03020,999,3675,860,5906,767,95425,372,62027,767,321
Total liabilities $22,365,938$23,752,926$7,546,425$7,795,679$29,912,363$31,548,605
Net assets:
Invested in capital assets
net of related debt $28,095,261$26,279,178$9,331,167$8,044,184$37,426,428$34,323,362
Restricted 3,213,4552,034,030381,465438,2753,594,9202,472,305
Unrestricted 21,119,17923,142,5345,918,1476,725,38327,037,32629,867,917
Total net assets $52,427,895$51,455,742$15,630,779$15,207,842$68,058,674$66,663,584
CITY OF COLUMBIA HEIGHTS' NET ASSETS
TotalsGovernmental Activities Business-Type Activities
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Management’s Discussion and Analysis
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues:
Charges for services $2,057,705 $2,336,094 $14,582,413 $14,143,485$16,640,118$16,479,579
Operating grants and
contributions 930,251 1,061,343 66,163 36,653 996,414 1,097,996
Capital grants and
contributions 1,539,716 3,616,597 - - 1,539,716 3,616,597
General revenues:
Property taxes 9,069,092 8,825,502 - - 9,069,092 8,825,502
Tax increment collections 558,861 812,965 - - 558,861 812,965
Grants and contributions not
restricted to specific programs 1,278,195 1,176,934 - - 1,278,195 1,176,934
Unrestricted investment earnings598,880 487,611 135,932 86,110 734,812 573,721
Gain on sale of capital assets 0
used in governmental activities 34,485 - - - 34,485 -
Total revenues 16,067,185 18,317,046 14,784,508 14,266,248 30,851,693 32,583,294
Expenses:
General government 2,039,6802,013,750 - - 2,039,6802,013,750
Public safety 5,549,6785,473,224 - - 5,549,6785,473,224
Public works 2,654,0472,777,966 - - 2,654,0472,777,966
Culture and recreation 2,576,4092,479,519 - - 2,576,4092,479,519
Community development 1,630,3502,295,574 - - 1,630,3502,295,574
Interest on long-term debt 909,858959,320 - - 909,858959,320
Water - - 2,370,0762,000,1012,370,076 2,000,101
Sewer - - 1,710,3811,478,5181,710,381 1,478,518
Refuse - - 1,561,6591,426,4861,561,659 1,426,486
Storm sewer - - 298,577272,355 298,577 272,355
Liquor - - 8,155,8887,910,9518,155,888 7,910,951
Total expenses 15,360,022 15,999,353 14,096,581 13,088,411 29,456,603 29,087,764
Increase (decreas e) in
net assets before transfers 707,163 2,317,693 687,927 1,177,837 1,395,090 3,495,530
Transfers 264,990 92,044 (264,990) (92,044) - -
Increase (decrease) in net assets 972,153 2,409,737 422,937 1,085,793 1,395,090 3,495,530
Net assets - January 1 51,455,742 49,046,005 15,207,842 14,122,049 66,663,584 63,168,054
Net assets - December 31 $52,427,895$51,455,742$15,630,779$15,207,842$68,058,674$66,663,584
Business-Type Activities Totals
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET ASSETS
Governmental Activities
Governmental activities. During the current year, governmental activities increased the City’s total
net assets by $972,153. During the prior year, governmental activities increased the City’s net assets
by $2,409,737. Key differences between the current and prior year change in net assets of
governmental activities include:
• Capital grants and contributions decreased by $2.1 million 2011, compared to the
prior year. This was primarily due to two federal grants for replacement of a
pedestrian bridge in 2010.
• All other changes in revenues of the governmental activities were approximately
offsetting. For example, a continuing decline in state aid revenue was offset by an
increase in general property taxes under the City’s multi-year plan to phase out
reliance on state aid for general operations. Also a decline in tax increment
19
Management’s Discussion and Analysis
collections in 2011, due to the expiration of certain tax increment districts, was
somewhat offset by the parcels from those expired districts now being subject to the
City’s general property tax levy.
• Expenses of the governmental activities decreased by $639,331 in 2011, compared to
the prior year. Most of this expense decrease was in the community development
function. This decrease ($270,875) was partially a result of a smaller capital
improvement expense at Parkview Villa North. A change in architects pushed
progress on the improvement back. The other large part of this difference is from the
adjustment to lower of cost or net realized value. In 2010 the City purchased and
demolished buildings on twenty three properties, in 2011 only six properties where
purchased. There was a much larger adjustment in 2010 compared to 2011.
• The net transfers-in from the City’s business-type activities to its governmental
activities increased by $172,946. This net increase primarily reflects the use fund
balance in the Capital Improvement – General Government Building fund for yard
improvements at the Central Garage, an internal service fund.
20
Management’s Discussion and Analysis
Business-type activities. In 2011, business-type activities increased the City’s total net assets by
$422,937 or less than 1%. In the prior year, business-type activities increased the City’s net assets by
$1,085,793 or 2%. The key differences between the current and prior year change in business-type
activities net assets were the following:
• In 2011, the aging water meter reading system underwent a battery replacement program.
The program expenses for the replacement project were nearly $230,000 and are expected to
be completed in 2012.
• The liquor fund saw an increase in net assets of $129,436. Sales by the liquor operation
increased in 2011 by $337,361 or 4.1% over 2010. The liquor operations regularly see
growth from year to year, 2011 sales grew at a greater rate, 3.2% compared to 2.5% in 2010.
21
Management’s Discussion and Analysis
22
Management’s Discussion and Analysis
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At December 31, 2011, the City’s governmental funds reported combined fund balances of
$24,436,268. Committed, assigned and unassigned fund balance, which is available for spending at
the City’s discretion, has a balance of $18,559,946. The remainder of fund balance is nonspendable
or restricted to indicate that it is not available for new spending because it has already been obligated
to pay debt service ($1,916,771), land held for resale ($1,945,188), prepaid items ($83,813),
interfund loans ($405,000), tax increment ($1,150,532) and other restrictions.
The general fund is the chief operating fund of the City. In 2011, fund balance in the general fund
increased by $526,816 or 10%. In the prior year, fund balance in the general fund increased by
$546,088 or 11%. Key differences between the current and prior year change in the fund balance of
the general fund include the following:
• Total general fund revenue remained approximately same in 2011 as in the prior year. The
amount of the tax levy increase compared to 2010, increasing tax revenue by approximately
$490,000.
• Total general fund expenditures increased $179,907 or 2% in 2011, as compared to the prior
year.
$19,000 was previously expensed in a non-major fund is now in the General
Fund related to Police Community Programs
$18,000 worth of building repairs at Murzyn Hall
$20,000 repair at City Hall for a watermain break and replacement water
meter
$20,000 for a remodel project underwent at City Hall
$32,000 increase in personnel costs in the Fire department due to a contract
settlement in December 2010 for a 3% salary increase and pay adjustment
to volunteer firefighters
23
Management’s Discussion and Analysis
The changes in fund balance of the other major governmental funds in 2011, and key elements of
those changes, were as follows:
• The Public Safety Center Capital Building Fund decreased to $0. This reflects the
construction completion of the facility.
• The Municipal State Aid Street Fund decreased by $201,211. This decrease reflects the 2011
transfer of revenue received in prior years to the nonmajor governmental funds for certain
debt service. 2011 expenditures were slightly greater in this fund.
• The Capital Improvements General Government Buildings Fund decreased by $319,067.
City Hall underwent several building improvements in 2011. Fund balance was used to cover
the expenses.
• The Capital Equipment Replacement General Government Fund decreased by $25,611. This
is the amount by which 2011 equipment purchases exceeded 2011 investment income and
transfers-in for equipment purchases.
• The Capital Improvements PIR Fund decreased by $453,588. This primarily reflects the 2011
transfer of certain special assessments and other sources received by this fund in prior years
to the nonmajor governmental funds for debt service purposes.
• The Capital Improvements Development Fund increased by $24,603. This primarily reflects
less activity in redevelopment for 2011.
The combined total fund balances of the nonmajor governmental funds decreased by $225,727 or
slightly greater than 2% in 2011. Whereas in the prior year, combined total fund balances of the
nonmajor governmental funds increased by $69,153 or 1%. This difference involved numerous
changes, but the most significant elements included:
• The G.O. Improvement/Revenue Bonds 2003A fund decreased by $484,055. In December,
the City elected to pay the remainder of the bond issue off, reducing the fund balance to zero.
• The Capital Improvement Park fund decreased by $267,134. This primarily reflects the
reconstruction of Ramsdell Park.
• The special revenue funds saw an increase in charges for services of $81,012. There was also
an increase and decrease of transfers in and out, respectively.
Proprietary funds. The City’s proprietary funds provide the same type of information that is
found in the government-wide financial statements for business-type activities, but in more detail.
At December 31, 2011, net assets of the major proprietary funds included the following amounts of
unrestricted net assets (deficit):
• Water Fund $563,281
• Sewer Fund $1,975,366
24
Management’s Discussion and Analysis
• Refuse Fund $988,745
• Storm Sewer Fund $32,869
• Liquor Fund $1,949,754
The 20111 increase (decreases) in net assets of the major proprietary funds included the following:
• Water Fund $104,783
• Sewer Fund ($220,432)
• Refuse Fund $146,951
• Storm Sewer Fund $63,769
• Liquor Fund $286,818
Other factors concerning the finances of the proprietary funds are addressed above in the analysis of
the City’s business-type activities.
Budgetary Highlights
General fund. The changes between the original and final 20111 general fund budget consist of:
• An increase of $91,744 to budgeted public safety expenditures consisted of a $20,000 budget
increase from the reclassification of the Police Community Programs fund from a special
revenue fund to the general fund and the remainder, an equal increase to the combined
amount budgeted for intergovernmental revenue and charges for services. This reflects
additional police and fire services and training funded by external entities after the adoption
of the original budget.
• A reclassification of $285,626 from tax revenue to intergovernmental revenue – market value
homestead credit. The City’s policy is to adopt the original budget using the classifications
required to certify the annual tax levy to Anoka County for collection. A portion of the tax
levy certified under this classification is never actually received from the County in the form
of tax revenue. This portion is received from the State of Minnesota as intergovernmental
revenue - the market value homestead credit. Each year, after the levy has been adjusted for
this item by Anoka County, an amendment to the original budget is recorded to reflect the
County’s adjustment.
Actual general fund revenues in 20111 were more than budgeted by $70,714 or 1%. This variance
was primarily the result of the following:
• Actual local government aid received from the State of Minnesota was $469,842 more than
budgeted for in 2011. This was however, offset by the actual amount of market value
homestead credit received from the State of Minnesota being $112,816 and tax revenue
$175,427 less than budgeted.
• The investment income produced much greater results then had been anticipated. A
conservative estimate was put on investment income which exceeded that estimate by
$20,000. With lower interest rates for long term bonds, the City has adopted a temporary
25
Management’s Discussion and Analysis
strategy of holding more investments in shorter term securities and money market accounts.
When rates increase, the City will revert to its prior investment strategy.
Actual general fund expenditures in 2011 were less than budgeted by $649,468 or 6%. The two
largest element of this variance were $289,936 in the parks and recreation departments and $109,080
in the police department.
• Police department personnel cost were $169,119 under budget. An early retirement of a long
term employee at the beginning of the early left a vacancy for the remainder of the year. The
police department also had an officer out on military leave for most of the year.
• In the parks and recreation department a full-time maintenance position was left unfilled.
• Other operations in the recreation department were able to use grant funds instead of
budgeted general fund money to hire seasonal summer youth enrichment supervisors.
• In 2010 the City opened a new gymnasium facility. When budgeting for 2011 there was not
sufficient information to accurately budget for the facilities, which was under the budgeted
amount by $62,323. Significant staffing was budgeted for the facility, but much of the actual
staffing was achieved by relocating existing staff from other facilities.
The remaining $250,452 of the general fund expenditure budget variance was spread across all
departments of the general fund, other than police and parks and recreation. To a large extent, this
reflects a continuation of cost reduction measures implemented in 2009 in response to state aid
reductions and weak economic conditions in general.
Capital Asset and Debt Administration
Capital assets. The City’s capital assets for its governmental and business-type activities as of
December 31, 2011, amount to $58,228,312 net of accumulated depreciation. This investment in
capital assets includes land, buildings, equipment, infrastructure, and construction in progress. Note
that real estate that is only held for resale is not included here in the analysis of capital assets used in
governmental and business-type activities.
At December 31, 2011, the City had $152,000 of noncancellable contractual commitments for
construction in 2011. Significant capital asset activity during 2011 included the following:
Year
Project StartedCost to DateStatus
Central avenue pedestrian bridge 2009 2,962,199 in-progress
Street reconstruction - Zone 6 2011 1,072,895 in-progress
Ramsdell Park reconstruction 2011 413,791 in-progress
Watermain & Sanitary Sewer lining2011 595,097 in-progress
As of December 31, 2011
26
Management’s Discussion and Analysis
City of Columbia Heights’ Capital Assets
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not being depreciated:
Land $4,891,781$ - $ - $4,891,781
Construction in progress 3,683,069 1,562,463 (619,277) 4,626,255
Total capital assets not being depreciated 8,574,850 1,562,463 (619,277) 9,518,036
Capital assets - being depreciated:
Buildings 27,385,274 573,598 - 27,958,872
Equipment 7,783,526 477,712 (285,551) 7,975,687
Infrastructure 25,435,996 478,606 - 25,914,602
Total capital assets being depreciated 60,604,796 1,529,916 (285,551) 61,849,161
Less accumulated depreciation for:
Buildings 9,964,703 689,863 - 10,654,566
Equipment 4,907,449 514,680 (279,037) 5,143,092
Infrastructure 11,367,910 879,573 - 12,247,483
Total accumulated depreciation 26,240,062 2,084,116 (279,037) 28,045,141
Capital assets being depreciated - net 34,364,734 (554,200) (6,514) 33,804,020
Governmental activities capital assets - net42,939,584 1,008,263 (625,791) 43,322,056
Business-type activities:
Capital assets - not being depreciated:
Land $2,343,247$ - $ - 2,343,247
Construction in progress 303,508 870,091 (103,820) 1,069,779
Total capital assets not being depreciated 2,646,755 870,091 (103,820) 3,413,026
Capital assets - being depreciated:
Buildings 4,581,314 - - 4,581,314
Equipment 2,031,792 140,027 - 2,171,819
Infrastructure 14,380,606 103,820 - 14,484,426
Total capital assets being depreciated 20,993,712 243,847 021,237,559
Less accumulated depreciation for:
Buildings 970,232 131,654 - 1,101,886
Equipment 1,363,180 128,528 - 1,491,708
Infrastructure 6,784,494 366,241 - 7,150,735
Total accumulated depreciation 9,117,906 626,423 09,744,329
Capital assets being depreciated - net 11,875,806 (382,576) 011,493,230
Business-type activities capital assets - net14,522,561 487,515 (103,820) 14,906,256
Total capital assets - net 57,462,145 1,495,778 (729,611) 58,228,312
Additional information on the City’s capital assets can be found in Note 4 to the financial statements.
Long-term debt. During 20111, the City’s total bonded debt decreased by $2,632,998 to an end of
year total of $25,645,000. This decrease was from the payment of principal due in the current year
and the early payoff of the 2003A GO bonds. Bonded debt outstanding at year end included general
obligation bonds, all of which are backed by the full faith and credit of the City, and revenue bonds,
for which only revenues from the related projects financed are pledged for repayment. Some of the
general obligation bonds have specific revenue sources pledged other than property taxes, but in the
27
Management’s Discussion and Analysis
event those other sources were insufficient, the City would be required to fund the shortfall through
property taxes.
State statute limits the amount of certain general obligation debt that a Minnesota city may issue to
3% of the taxable market value of property within a city’s taxing jurisdiction. At December 31, 2011,
the City’s debt limit under this statute was $35,278,494 and $12,698,431 of the City’s outstanding
debt was of the type to which this limit applies.
City of Columbia Heights’ Long-Term Debt
2011 2010 2011 2010 2011 2010
General obligation bonds:
Repaid only with general taxes$12,698,431$13,855,000$ - $ - $12,698,431$13,855,000
With other pledged revenues 4,102,2994,556,7501,304,2702,128,2485,406,5696,684,998
Revenue bonds 2,790,0002,838,0004,750,0004,900,0007,540,0007,738,000
Compensated absences 944,689866,723161,109137,1481,105,7981,003,871
Postemployment benefits other
than pensions 58,761 30,661 - - 58,761 30,661
$20,594,180$22,147,134$6,215,379$7,165,396$26,809,559$29,312,530
Governmental Activities Business-Type Activities Totals
At December 31, 2011, the City’s general obligation bonds have an AA rating from Standard and
Poor’s and Aa2 rating from Moody’s. The outstanding revenue bonds of the business activities at
December 31, 2011, are repaid only with lease revenue and have an A1 rating from Moody’s. The
outstanding revenue bonds of the governmental activities at December 31, 2011, are repaid only with
tax increment and are unrated.
In addition to bonded debt, at year end there was long-term debt in the amount of $1,105,798 and
$58,761 respectively, for compensated absences and post-employment health insurance. Additional
information on the City’s long-term debt can be found in Note 6 to the financial statements.
Economic Factors and Next Year’s Budget
In 2011, the average annual unemployment rate for Anoka County, which includes the City, was
6.7%. This is a decrease from a rate of 7.5% from the prior year. This compares to the average 2011
state and national rates of 5.7% and 9.0% respectively. Inflationary trends in the region compare
favorably to national trends.
These factors were considered in preparing the City of Columbia Heights’ 2011 budget.
Requests For Information.
This financial report is designed to provide a general overview of the City of Columbia Heights
finances for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the City of Columbia Heights, Finance Department, 590 40th Avenue NE, Columbia
Heights, Minnesota 55421-3878.
28
BASIC FINANCIAL STATEMENTS
29
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2011 Page 1 of 2
With Comparative Totals For December 31, 2010
GovernmentalBusiness-Type
ActivitiesActivities20112010
Current assets:
Cash and investments$24,790,279$4,042,728$28,833,007$29,549,146
Cash and investments with fiscal agent - 399,254399,254399,254
Receivables:
Accounts (net of allowance for uncollectibles)118,0571,432,3921,550,4491,479,456
Special assessments - current511,412 - 511,412492,979
Taxes 436,551 - 436,551535,070
Interest62,14313,70075,843124,564
Due from other governmental units - current712,0041,228713,2321,240,039
Internal balances148,965(148,965) - -
Prepayments189,195172,348361,543293,340
Inventory - at cost - 2,358,2942,358,2942,361,780
Real estate held for resale1,945,117 - 1,945,1171,547,025
Total current assets28,913,7238,270,97937,184,70238,022,653
Noncurrent assets:
Special assessments receivable - noncurrent2,558,054 - 2,558,0542,683,791
Loans receivable - noncurrent - - - 43,600
Due from other governmental units - noncurrent - - - -
Capital assets (net of accumulated depreciation):
Land4,891,7812,343,2477,235,0287,235,028
Buildings17,304,3053,479,42820,783,73321,031,653
Equipment2,832,595680,1123,512,7073,544,691
Infrastructure13,667,1197,333,69121,000,81021,664,196
Construction in process4,626,2561,069,7475,696,0033,986,577
Total noncurrent assets45,880,11014,906,22560,786,33560,189,536
Total assets74,793,83323,177,20497,971,03798,212,189
Totals
Primary Government
Assets
The accompanying notes are an integral part of these financial statements.
30
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2011 Page 2 of 2
With Comparative Totals For December 31, 2010
GovernmentalBusiness-Type
ActivitiesActivities 2011 2010
Current liabilities:
Accounts payable $535,917$720,652$1,256,569$792,514
Accrued salaries and withholdings payable 258,668 45,989 304,657 203,029
Contracts payable - retained percentage 133,048 42,760 175,808 157,723
Due to other governmental units 242,507 397,796 640,303 356,532
Unearned revenue 218,857 - 218,857 179,543
Accrued interest payable 348,671 123,849 472,520 513,826
Deposits 34,090 - 34,090 32,908
Compensated absences payable - current 110,150 18,789 128,939 132,209
Bonds payable - current 972,000 336,0001,308,0001,413,000
Total current liabilities 2,853,9081,685,8354,539,7433,781,284
Noncurrent liabilities:
Compensated absences payable - noncurrent 834,539 142,320 976,859 871,662
Other postemployment benefits payable - noncurrent 58,761 - 58,761 30,661
Bonds payable - noncurrent 18,618,7305,718,27024,337,00026,864,998
Total noncurrent liabilities 19,512,0305,860,59025,372,62027,767,321
Total liabilities 22,365,9387,546,42529,912,36331,548,605
Invested in capital assets - net of related debt 28,095,2619,331,16737,426,42834,323,362
Restricted for:
Debt service 1,476,896 381,4651,858,3611,463,495
Tax increment purposes 1,361,471 - 1,361,4711,008,810
Other purposes 375,088 - 375,088 -
Unrestricted 21,119,1795,918,14727,037,32629,867,917
Total net assets $52,427,895$15,630,779$68,058,674$66,663,584
Liabilities
Net assets
Primary Government
Totals
The accompanying notes are an integral part of these financial statements.
31
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
Charges For
Expenses Services
Functions/Programs
Primary government:
Governmental activities:
General government $2,039,680 $189,641
Public safety 5,549,678 697,656
Public works 2,654,047 48,303
Culture and recreation 2,576,409 159,829
Community development 1,630,350 962,276
Interest on long-term debt 909,858 -
Total governmental activities 15,360,022 2,057,705
Business-type activities:
Water 2,370,076 2,530,803
Sewer 1,710,381 1,523,852
Refuse 1,561,659 1,682,178
Storm sewer 298,577 350,618
Liquor 8,155,888 8,494,962
Total business-type activities 14,096,581 14,582,413
Total primary government $29,456,603 $16,640,118
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Operating Capital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivities Activities 2011 2010
$ - $38,399($1,811,640)$ - ($1,811,640)($1,626,903)
563,914 11,303(4,276,805) - (4,276,805)(4,182,511)
176,578 1,314,547(1,114,619) - (1,114,619)280,891
76,864 - (2,339,716) - (2,339,716)(2,100,495)
112,895 175,467 (379,712) - (379,712)(396,981)
- - (909,858) - (909,858)(959,320)
930,251 1,539,716(10,832,350)0(10,832,350)(8,985,319)
- - - 160,727 160,727 503,405
- - - (186,529)(186,529)115,804
66,163 - - 186,682 186,682 152,479
- - - 52,041 52,041 72,731
- - - 339,074 339,074 247,308
66,163 0 0 551,995 551,995 1,091,727
$996,414$1,539,716(10,832,350)551,995(10,280,355)(7,893,592)
General revenues:
Property taxes 9,069,092 - 9,069,092 8,825,502
Tax increment collections 558,861 - 558,861 812,965
Grants and contributions not
restricted to specific programs 1,278,195 - 1,278,195 1,176,934
Unrestricted investment earnings 598,880 135,932 734,812 573,721
Gain on sale of capital assets used
in governmental activities 34,485 - 34,485 -
Transfers 264,990 (264,990) - -
Total general revenues and transfers11,804,503 (129,058)11,675,44511,389,122
Change in net assets 972,153 422,937 1,395,090 3,495,530
Net assets - January 1 51,455,74215,207,84266,663,58463,168,054
Net assets - December 31 $52,427,895$15,630,779$68,058,674$66,663,584
Totals
Net (Expense) Revenue and
Changes in Net AssetsProgram Revenues
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
General Fund
2008A Taxable
GO Housing
Improvement
Area Bonds Fund
Public Safety
Center Capital
Building Fund
Municipal State
Aid Street Fund
Assets
Cash and investments $5,850,939 $174,855$ - $170,723
Receivables:
Accounts 27,456 - - -
Special assessments - 870,735 - -
Taxes 390,150 - - -
Interest 15,443 300 - -
Loans - - - -
Due from other governmental units 152,911 - - 351,852
Interfund receivable 392,396 - - -
Prepayments 80,767 - - -
Real estate held for resale - - - -
Total assets $6,910,062$1,045,890 $0 $522,575
Liabilities and Fund Balances
Liabilities:
Accounts payable $128,693$ - $ - $1,175
Accrued salaries and withholdings payable 231,483 - - 675
Contracts payable - retained percentage - - - 54,372
Due to other governmental units 204,679 - - -
Interfund payable 2,280 - - 294,973
Deferred revenue 473,872 870,735 - 83,000
Deposits - - - -
Total liabilities 1,041,007 870,735 0 434,195
Fund balance:
Nonspendable 80,767 - - -
Restricted - 175,155 - -
Committed 132,595 - - 88,380
Assigned - - - -
Unassigned 5,655,693 - - -
Total fund balances 5,869,055 175,155 0 88,380
Total liabilities and fund balances $6,910,062$1,045,890 $0 $522,575
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.
34
Statement 3
Capital
Improvements
General Gov't
Buildings
Capital
Equipment
Replacement
General Gov't
Capital
Improvements
PIR Fund
Capital
Improvement
Development
Other
Governmental
Funds
Interfund
Eliminations
Total
Governmental
Funds
2011
$1,291,099$3,968,596$846,105$1,980,346$8,070,702$ - $22,353,365
3,106 - - 6,026 78,476 - 115,064
- - 2,198,731 - - - 3,069,466
- - - - 46,401 - 436,551
4,300 12,300 3,500 5,600 16,900 - 58,343
- - - - - - -
- - 13,101 - 194,140 - 712,004
- 499,000 - - 27,308 (419,704)499,000
- - - - 3,046 - 83,813
- - 53,300 144,2701,747,547 - 1,945,117
$1,298,505$4,479,896$3,114,737$2,136,242$10,184,520($419,704)$29,272,723
$22,434$ - $83,445 $3,842$173,442$ - $413,031
- - 922 - 21,931 - 255,011
1,509 - 48,946 - 13,790 - 118,617
- - - 138 37,690 - 242,507
- - - - 164,090 (419,704)41,639
- - 2,192,747 - 111,206 - 3,731,560
- - 6,331 - 27,759 - 34,090
23,943 02,332,391 3,980 549,908 (419,704)4,836,455
- 405,000 53,300 144,2701,750,593 - 2,433,930
- - - - 3,265,495 - 3,440,650
1,274,5624,074,896 729,0461,987,9924,619,565 - 12,907,036
- - - - - - -
- - - - (1,041) - 5,654,652
1,274,5624,479,896 782,3462,132,2629,634,612 024,436,268
$1,298,505$4,479,896$3,114,737$2,136,242$10,184,520($419,704)$29,272,723
$24,436,268
42,000,243
3,519,936
2,469,610
(19,998,162)
$52,427,895
The accompanying notes are an integral part of these financial statements.
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2011
General Fund
2008A Taxable
GO Housing
Improvement
Area Bonds Fund
Public Safety
Center Capital
Building Fund
Municipal State
Aid Street Fund
Revenues:
Taxes $7,263,658$ - $ - $ -
Tax increment collections - - - -
Special assessments - 105,612 - -
Licenses and permits 158,385 - - -
Intergovernmental 1,671,165 - - 718,358
Charges for services 589,915 - - 968
Fines and forfeitures 146,140 - - -
Investment income:
Interest and dividends 94,441 2,000 1,600 -
Change in fair value 52,150 1,100 900 -
Other revenues 6,156 - - 5,090
Total revenues 9,982,010 108,712 2,500 724,416
Expenditures:
Current:
General government 1,779,323 - - -
Public safety 4,925,309 - 15,207 -
Public works 1,335,963 - - 121,794
Culture and recreation 1,442,978 - - -
Community development - - - -
Capital outlay:
General government 28,475 - - -
Public safety 14,791 - - -
Public works 56,978 - - 680,833
Culture and recreation 9,084 - - -
Community development - - - -
Debt service:
Principal retirement - 45,000 - -
Interest and fiscal charges - 52,295 - -
Developer incentives - - - -
Total expenditures 9,592,901 97,295 15,207 802,627
Revenues over (under) expenditures 389,109 11,417 (12,707)(78,211)
Other financing sources (uses):
Transfers in 371,397 - - -
Transfers out (233,690) - (329,507)(123,000)
Sale of capital assets - - - -
Total other financing sources (uses)137,707 0 (329,507)(123,000)
Net change in fund balance 526,816 11,417 (342,214)(201,211)
Fund balance - January 1 5,342,239 163,738342,214 289,591
Fund balance - December 31 $5,869,055$175,155 $0 $88,380
The accompanying notes are an integral part of these financial statements.
36
Statement 4
Capital
Improvements
General Gov't
Buildings
Capital
Equipment
Replacement
General Gov't
Capital
Improvements
PIR Fund
Capital
Improvement
Development
Other
Governmental
Funds
Interfund
Eliminations
Total
Governmental
Funds
2011
$ - $ - $ - $ - $1,870,815$ - $9,134,473
- - - - 548,960 - 548,960
- - 623,715 - - - 729,327
- - - - 219,972 - 378,357
38,399 - - - 392,497 - 2,820,419
- - 42,2642,7001,016,808 - 1,652,655
- - - - 23,949 - 170,089
26,50076,00021,70034,700106,089 - 363,030
14,70042,10012,00019,20057,000 - 199,150
3,106 - 1,50732353,991 - 70,173
82,705 118,100 701,186 56,923 4,290,081 0 16,066,633
10,579 - 5,007 - 85,348 - 1,880,257
- 11,50153,284 - 32,247 - 5,037,548
- 5,63244,988 - 1,150 - 1,509,527
10,662 - - - 853,053 - 2,306,693
- - - 95,5611,225,870 - 1,321,431
115,554 - - - - - 144,029
- 80,490 - - - - 95,281
- 112,138501,565 - 531,273 - 1,882,787
99,241 32,542 - - - - 140,867
- - - 26,759 13,790 - 40,549
- - - - 1,614,022 - 1,659,022
- - - - 883,110 - 935,405
- - - - 181,638 - 181,638
236,036 242,303 604,844 122,320 5,421,501 0 17,135,034
(153,331)(124,203)96,342 (65,397)(1,131,420)0 (1,068,401)
22,536 66,343 16,154 90,0001,317,191(1,557,038)326,583
(188,272)(8,750)(566,084) - (409,757)1,557,038(302,022)
- 40,999 - - - - 40,999
(165,736)98,592 (549,930)90,000 907,434 0 65,560
(319,067)(25,611)(453,588)24,603 (223,986)0 (1,002,841)
1,593,6294,505,5071,235,9342,107,6599,858,598 - 25,439,109
$1,274,562$4,479,896$782,346$2,132,262$9,634,612 $0$24,436,268
The accompanying notes are an integral part of these financial statements.
37
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38
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, 2011
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)($1,002,841)
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.184,398
The net effect of various miscellaneous transactions involving capital assets, such as
sales, trade-ins and abandonments was a decrease in net assets (6,514)
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.1,659,020
Interest that accrues in the prior year on long-term debt, that is paid in the current year,
consumes current financial resources, and is therefore reported in the governmental funds.
It does not reduce net assets however, and is not reported as an expense in the statement of
activities.25,547
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.(28,100)
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.(69,331)
The net expenses of certain activities of internal service funds are reported within governmental
activities in the statement of activities.209,974
Change in net assets of governmental activities (Statement 2)$972,153
The accompanying notes are an integral part of these financial statements.
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
Assets:Water Utility FundSewer Utility Fund
Current assets:
Cash and cash equivalents $559,410$1,759,137
Cash and cash equivalents with fiscal agent - -
Receivables:
Accounts (net of allowance for uncollectibles)543,527370,478
Interest 3,5005,500
Due from other governmental units - current - -
Interfund receivable 12,04175,229
Prepayments - 74,917
Inventory - at cost 1,712 -
Total current assets1,120,190 2,285,261
Noncurrent assets:
Capital assets:
Land 45,22336,586
Construction in progress 479,626 550,773
Buildings 559,826 100,426
Equipment 462,515 840,942
Infrastructure 7,524,209 5,482,680
Total capital assets 9,071,399 7,011,407
Less: accumulated depreciation(4,044,729)(4,146,206)
Net capital assets5,026,6702,865,201
Totalnoncrrentassets 5026670 2865201
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
Total noncurrent assets 5,026,670 2,865,201
Total assets 6,146,860 5,150,462
Liabilities:
Current liabilities:
Accounts payable 18,271 228,179
Accrued salaries and withholdings payable 5,877 6,965
Due to other governmental units 302,698 -
Interfund payable 398,000 -
Contracts payable - 42,760
Accrued interest payable 16,795 -
Deferred revenue - -
Compensated absences payable - current 3,330 3,731
Bonds payable - current 152,880 -
Total current liabilities 897,851 281,635
Noncurrent liabilities:
Compensated absences payable - noncurrent 25,222 28,260
Bonds payable - noncurrent 951,490 -
Total noncurrent liabilities 976,712 28,260
Total liabilities 1,874,563 309,895
Net assets:
Invested in capital assets, net of related debt 3,524,300 2,865,201
Restricted for debt service 184,716 -
Unrestricted 563,281 1,975,366
Total net assets $4,272,297 $4,840,567
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.
40
Statement 6
Business-Type Activities - Enterprise Funds
Refuse Utility Fund
Storm Sewer Utility
FundLiquor Fund
Interfund
Eliminations
Total Enterprise
FundsInternal Service Funds
20112011
$789,747$36,111$277,781$ - $3,422,186$3,057,456
- - 399,254 - 399,254 -
432,52985,589269 - 1,432,3922,993
2,200500200 - 11,9005,600
- - 1,228 - 1,228 -
- - - (45,631)41,639 -
- - 97,431 - 172,34846,809
- - 2,356,582 - 2,358,29458,573
1,224,476 122,200 3,132,745 (45,631)7,839,241 3,171,431
- 254,7242,006,714 - 2,343,24715,779
- 39,348 - - 1,069,74761,935
6,000 - 3,915,062 - 4,581,3141,780,253
108,690190,653386,314 - 1,989,114381,616
- 1,477,536 - - 14,484,425 -
114,690 1,962,261 6,308,090 0 24,467,847 2,239,583
(113,490)(632,546)(673,314) - (9,610,285)(869,108)
1,2001,329,7155,634,776 - 14,857,5621,370,475
1200 1329715 5634776 0 14857562 1370475
The accompanying notes are an integral part of these financial statements.
1,200 1,329,715 5,634,776 0 14,857,562 1,370,475
1,225,676 1,451,915 8,767,521 (45,631)22,696,803 4,541,906
227,885 3,380 238,904 - 716,619 126,919
3,007 2,251 20,127 - 38,227 11,418
- - 95,098 - 397,796 -
- 146,630 - (45,631)498,999 -
- - - - 42,760 14,431
- 3,307 103,747 - 123,849 -
- - - - - 7,233
588 91 9,698 - 17,438 113,281
- 28,120 155,000 - 336,000 -
231,480 183,779 622,574 (45,631)2,171,688 273,282
4,451 693 73,463 - 132,089 842,991
- 171,780 4,595,000 - 5,718,270 -
4,451 172,473 4,668,463 0 5,850,359 842,991
235,931 356,252 5,291,037 (45,631)8,022,047 1,116,273
1,200 1,028,815 1,363,961 - 8,783,477 -
- 33,979 162,769 - 381,464 -
988,545 32,869 1,949,754 - 5,509,815 3,425,633
$989,745 $1,095,663 $3,476,484 $0 14,674,756 $3,425,633
956,023
$15,630,779
The accompanying notes are an integral part of these financial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Water Utility FundSewer Utility FundRefuse Utility Fund
Operating revenues:
Charges for services $156,930 $1,521,142 $1,682,178
Charges for sales, net of discounts (Note 1C)2,290,210 - -
Sale of water meters 82,853 - -
Total operating revenues 2,529,993 1,521,142 1,682,178
Operating expenses:
Cost of sales, services and goods sold 1,192,653 901,096 1,381,227
Operating expense 870,901 590,875 123,004
Depreciation 204,716 170,740 300
Total operating expenses 2,268,270 1,662,711 1,504,531
Net income (loss) from operations 261,723 (141,569)177,647
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 34,000 57,332 21,000
Intergovernmental - - 66,163
Miscellaneous revenues 505 2,710 -
Interest and fiscal charges (58,425) - -
Total nonoperating revenues (expenses)(23,920)60,042 87,163
Net income (loss) before transfers 237,803 (81,527)264,810
Transfers in 2,943 - -
Transfers out (135,963)(138,905)(117,859)
Total transfers and capital contributions (133,020)(138,905)(117,859)
Change in net assets 104,783 (220,432)146,951
Total net assets - January 1 4,167,514 5,060,999 842,794
Total net assets - December 31 $4,272,297 $4,840,567 $989,745
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
Reconciliation of capital contributions and interfund transfers:
Amount reported above
Amounts reported for business-type activities in the statement of activities are different because:
Adjustment to reflect consolidation of internal service fund activities
Transfer in of capital assets from governmental activities
Amounts reported on the statement of activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
42
Statement 7
Storm Sewer Utility
Fund Liquor Fund
Interfund
Eliminations
Total Enterprise
Funds
Internal Service
Funds
2011 2011
$349,964 $ - $ - $3,710,214 $976,593
- 8,494,962 - 10,785,172 174,493
- - - 82,853 -
349,964 8,494,962 0 14,578,239 1,151,086
- 6,413,886 - 9,888,862 1,336,141
206,604 1,310,983 - 3,102,367 -
81,450 148,673 - 605,879 72,152
288,054 7,873,542 0 13,597,108 1,408,293
61,910 621,420 0 981,131 (257,207)
4,700 1,500 - 118,532 54,100
- - - 66,163 -
654 - - 3,869 (1,300)
(12,245)(237,147) - (307,817) -
(6,891)(235,647)0 (119,253)52,800
55,019 385,773 0 861,878 (204,407)
8,750 - (2,943)8,750 473,272
- (98,955)2,943 (488,739)(17,843)
8,750 (98,955)0 (479,989)455,429
63,769 286,818 0 381,889 251,022
1,031,894 3,189,666 - 14,292,867 3,174,611
$1,095,663 $3,476,484 $0 $14,674,756 $3,425,633
$381,889
41,048
$422,937
Transfers -
Net
($488,740)
215,000
8,750
($264,990)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Water Utility FundSewer Utility Fund
Cash flows from operating activities:
Cash received from customers $2,519,587 $1,499,250
Cash received from interfund goods and services provided - -
Cash paid to suppliers for goods and services (1,475,703)(1,026,583)
Cash payments to employees for services (366,427)(221,327)
Net cash flows provided by (used in) operating activities 677,457 251,340
Cash flows from noncapital financing activities:
Transfers in 474,600 200,324
Transfers out (607,620)(339,229)
Intergovernmental - -
Interfund receivable repaid by (advanced to) other funds (817,339)36,060
Interfund payable advanced by other funds 1,222,245 -
Net cash flows provided by (used in) noncapital financing activities 271,886 (102,845)
Cash flows from capital and related financing activities:
Acquisition of capital assets (427,862)(448,083)
Principal payments - bonds (666,203) -
Interest and fiscal charges - including capitalized interest (68,680) -
Net cash flows provided by (used in) capital and related financing activities(1,162,745)(448,083)
Cash flows from investing activities:
Investment income 34,300 60,332
Net cash flows provided by (used in) investing activities 34,300 60,332
Net increase (decrease) in cash and cash equivalents (179,102)(239,256)
Total cash and cash equivalents - January 1 738,512 1,998,393
Total cash and cash equivalents - December 31 559,410 1,759,137
(Less) cash and cash equivalents with fiscal agent - December 31 - -
Cash and cash equivalents - December 31 $559,410 $1,759,137
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
Statement 8
Page 1 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
2011 2011
$1,629,104 $343,664 $8,495,572 $14,487,177 $34,928
- - - - 1,642,941
(1,305,582)(87,642)(6,684,150)(10,579,660)(701,913)
(75,568)(119,070)(929,242)(1,711,634)(981,993)
247,954 136,952 882,180 2,195,883 (6,037)
- - 390,000 1,064,924 540,380
(117,859)(148,028)(488,955)(1,701,691)(84,951)
66,163 - - 66,163 -
- - - (781,279) -
- 294,658 (102,815)1,414,088 -
(51,696)146,630 (201,770)62,205 455,429
- (86,184)(11,099)(973,228)(284,303)
- (157,775)(150,000)(973,978) -
- (14,669)(250,130)(333,479) -
0 (258,628)(411,229)(2,280,685)(284,303)
21,300 5,100 1,600 122,632 55,600
21,300 5,100 1,600 122,632 55,600
217,558 30,054 270,781 100,035 220,689
572,189 6,057 406,254 3,721,405 2,836,767
789,747 36,111 677,035 3,821,440 3,057,456
- - (399,254)(399,254) -
$789,747 $36,111 $277,781 $3,422,186 $3,057,456
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, 2011
Water Utility FundSewer Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$261,723 ($141,569)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 204,716 170,740
Miscellaneous revenues 505 2,710
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (10,911)(24,602)
(Increase) decrease in due from other governmental units - -
(Increase) decrease in prepayments - 174
Adjustment for nonoperating portion - -
(Increase) decrease in inventory, at cost 431 -
Increase (decrease) in accounts payable 10,412 223,791
Increase (decrease) in accrued
salaries and withholdings payable (3,857)3,119
Increase (decrease) in contracts payable - retained percentage 205,722 11,660
Adjustment for nonoperating portion - -
Increase (decrease) in due to other governmental units 4,684 -
Increase (decrease) in deposits payable - -
Increase (decrease) in compensated absences payable 4,032 5,317
Total adjustments 415,734 392,909
Net cash flows from operating activities $677,457 $251,340
Noncash capital and related financing activities:
Contribution of capital asset from government $ - $234,668
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
46
Statement 8
Page 2 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
2011 2011
$177,647 $61,910 $621,420 $981,131 ($257,207)
300 81,450 148,673 605,879 72,152
- 654 - 3,869 -
(53,074)(6,954)147 (95,394) -
- - 463 463 -
- - (9,902)(9,728)3,661
- - 9,902 9,902
- - (35,966)(35,535)(19,551)
121,464 148 121,198 477,013 112,349
1,858 255 1,637 3,012 3,406
- - - 217,382 -
- - - - -
- - 7,490 12,174 -
- - - - -
(241)(511)17,118 25,715 76,213
70,307 75,042 260,760 1,214,752 248,230
$247,954 $136,952 $882,180 $2,195,883 ($8,977)
$ - $8,750 $ - $243,418 $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
47
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS Statement 9
FIDUCIARY FUNDS
December 31, 2011
Assets:
Cash and investments $3,174
Due from other governmental units 6,748
Total assets $9,922
Liabilities:
Accounts payable $8,171
Due to other governmental units 1,751
Total liabilities $9,922
The accompanying notes are an integral part of these financial statements.
48
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
50
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
The public safety center capital building fund was established to account for the planning,
development and construction of a police and fire facility.
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 capital improvement – development fund was established to account for redevelopment.
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
activities and enterprise funds, subject to this same limitation. The City has elected not to follow
subsequent private-sector guidance.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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. 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.
D. BUDGETARY DATA
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
on January 1 of the following year. At least one special Council meeting is conducted to obtain public
comments as required by the State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 for the General Fund and the following
special revenue funds:
Nonmajor special revenue funds:
Cable television 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
52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like
external investment pools, which are stated at amortized cost. At December 31, 2011, the City had no
investments in 2a7-like external investment pools. Investment income is accrued at the balance sheet date.
During 2011, the HRA entered into a depository agreement with HUD who provides grants to Parkview
Villa North. The depository agreement allows HUD under certain circumstances to restrict certain
disbursements. The balance at December 31, 2011 was $1,000,165.
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.”
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.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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
Equipment 3 - 15 years
Infrastructure 20 - 60 years
Capital Assets
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
N. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – consists of amounts that are not in spendable forms, such as prepaid items.
Restricted – consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed – consist of internally imposed constraints. These constraints are established by
Resolution of the City Council.
Assigned – consists of internally imposed constraints. These constraints reflect the specific
purpose for which it is the City’s intended use. These constraints are established by the City
Council and/or management.
Unassigned – is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed. When committed, assigned or
unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1)
committed, 2) assigned and 3) unassigned.
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.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 ($19,998,162) difference are as follows:
Accrued interest payable ($348,671)
Other postemployment benefits payable (58,761)
Bonds payable (19,590,730)
Adjustment to fund balance - total governmental
funds - to arrive at net assets of governmental activities ($19,998,162)
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 $184,398 difference are as
follows:
Total capital outlay in government fund financial statements $2,250,210
Adjustments to the carrying value of real estate held for resale (33,303)
Depreciation expense (2,032,509)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net assets of governmental activities.$184,398
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 $1,659,022 difference are as follows:
Principal repayments:
General obligation bonds $1,611,022
Revenue bonds 48,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net assets of governmental activities.$1,659,022
Another element of that reconciliation states, “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.” The details of this ($69,331)
difference are as follows:
General property taxes deferred revenue:
At December 31, 2010 (413,597)
At December 31, 2011 348,216
Tax increment taxes deferred revenue:
At December 31, 2010 (15,337)
At December 31, 2011 25,238
Special assessments deferred revenue:
At December 31, 2010 (3,116,733)
At December 31, 2011 3,063,482
Loans receivable deferred revenue:
At December 31, 2010 (43,600)
At December 31, 2011 -
State aid deferred revenue:
At December 31, 2010 -
At December 31, 2011 83,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net assets of governmental activities.($69,331)
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.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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, 2011, 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, 2011 are
as follows:
Carrying
Amount At
Fair Value
Investments $20,524,867
Deposits 8,702,007
Cash on hand 8,560
(Less) fidicuiary fund cash (3,173)
$29,232,261
Cash and investments $28,833,007
Cash and investments with fiscal agent399,254
$29,232,261
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.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Deposits as of December 31, 2011 are as follows:
Carrying
Bank Amount At
BalancesFair Value
Demand deposits$1,829,420$1,678,496
Time deposits 7,033,6477,023,512
Total $8,863,067$8,702,008
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.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Investments as of December 31, 2011, are as follows:
Weighted
Average CarryingPercentage
MaturitiesAmount Atof Fair Value
In YearsFair ValuePer Issuer
Notes issued by U.S. government agencies:
Federal Home Loan Bank10.0$2,338,74211.4%
Federal Home Loan Mortgage Corporation8.67,266,86935.4%
Federal National Mortgage Association9.46,611,39332.2%
Money market mutual funds:
Evergreen U.S. Government FundN/A1,002,6064.9%
Western Asset Government FundN/A900,3444.4%
Other issuersN/A2,404,91311.7%
Total investments20,524,867$ 100.0%
C. INVESTMENT RISKS
The City's investment policy follows Minnesota State Statutes described above, which reduce the City's
exposure to credit, custodial credit and interest rate risks. Additional risk information for the City
is as follows:
a) Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could
adversely affect the fair value of an investment. 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 – Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. As of December 31, 2011, the City's
investments in notes issued by U.S. government agencies were all rated AAA by Standard & Poor's,
and Aaa by Moody's Investor Services. The money market funds in which the City held shares at
December 31, 2011, were not rated, but are invested in U.S. Government Obligations and/or securities
guaranteed by the U.S. government, and those underlying securities are rated AAA by Standard &
Poors and Aaa by Moody’s Investor Services.
c) Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government’s investment in a single issuer. 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, 2011.
d) Custodial credit risk – 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, 2011, investments in securities are held by the City’s three broker-
dealers in the City’s name, with $500,000 of those securities at each broker-dealer insured by SIPC.
Each broker-dealer has provided additional protection by providing additional insurance. This
additional insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts.
Investments in money markets are not evidenced by securities that exist in physical or book entry
form, and therefore are not subject to custodial credit risk disclosures.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2011 are as follows:
2008A TaxableCapital
GO Housing ImpImprovement
Area Bonds FundPIR Fund Total
Special assessments receivable $820,151$1,737,886$2,558,037
Total $820,151$1,737,886$2,558,037
Major Funds
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)$335,577$ -
Delinquent property taxes receivable (Nonmajor Funds)12,639 -
Delinquent tax increment (Nonmajor Funds)25,238 -
Delinquent special assessments (2008A GO Txbl. Hsg. Imp. Area Bonds Fund)2,286 -
Delinquent special assessments (Capital Improvements - PIR Fund)48,355 -
Special assessments not yet due (2008A GO Txbl. Hsg. Imp. Area Bonds Fund)868,449 -
Special assessments not yet due (Capital Improvements - PIR Fund)2,144,391 -
Intergovernmental revenue (Capital Improvements - PIR Fund)83,000 -
Contract service fees received but unearned (General Fund) - 138,295
Rental fees received in advance (Nonmajor Funds) - 73,328
Forfeitures with adjudication pending (Nonmajor Funds) - 7,233
Total deferred revenue for governmental funds $3,519,935$218,856
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2011 is as follows:
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not being depreciated:
Land $4,891,781$ - $ - $4,891,781
Construction in progress 3,683,0691,562,463(619,277)4,626,255
Total capital assets not being depreciated 8,574,8501,562,463(619,277)9,518,036
Capital assets - being depreciated:
Buildings 27,385,274573,598 - 27,958,872
Equipment 7,783,526477,712(285,551)7,975,687
Infrastructure 25,435,996478,606 - 25,914,602
Total capital assets being depreciated 60,604,7961,529,916(285,551)61,849,161
Less accumulated depreciation for:
Buildings 9,964,703689,863 - 10,654,566
Equipment 4,907,449514,680(279,037)5,143,092
Infrastructure 11,367,910879,573 - 12,247,483
Total accumulated depreciation 26,240,0622,084,116(279,037)28,045,141
Capital assets being depreciated - net 34,364,734(554,200)(6,514)33,804,020
Governmental activities capital assets - net 42,939,5841,008,263(625,791)43,322,056
Business-type activities:
Capital assets - not being depreciated:
Land 2,343,247 - - 2,343,247
Construction in progress 303,508870,091(103,820)1,069,779
Total capital assets not being depreciated 2,646,755870,091(103,820)3,413,026
Capital assets - being depreciated:
Buildings 4,581,314 - - 4,581,314
Equipment 2,031,792140,027 - 2,171,819
Infrastructure 14,380,606103,820 - 14,484,426
Total capital assets being depreciated 20,993,712243,847 021,237,559
Less accumulated depreciation for:
Buildings 970,232131,654 - 1,101,886
Equipment 1,363,180128,528 - 1,491,708
Infrastructure 6,784,494366,241 - 7,150,735
Total accumulated depreciation 9,117,906626,423 09,744,329
Capital assets being depreciated - net 11,875,806(382,576)011,493,230
Business-type activities capital assets - net 14,522,561487,515(103,820)14,906,256
Total capital assets - net $57,462,145$1,495,778($729,611)$58,228,312
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Depreciation expense was charged to functions/programs of the primary government – governmental activities as
follows:
Governmental activities:
General government$74,401
Public safety 507,092
Public works 1,064,951
Culture and recreation273,494
Community development112,571
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Central garage 51,607
Total depreciation expense - capital assets held by governmental activities $2,084,116
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water $204,716
Sewer 170,740
Refuse 300
Storm sewer 81,449
Liquor 148,673
Depreciation on capital assets held by business-type internal service activities
is charged to each function based on use:
Information systems 20,545
Total depreciation expense - capital assets held by business-type activities $626,423
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 5 INTERFUND RECEIVABLES, PAYABLES , CAPITAL LEASES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2011 are as follows:
Fund ReceivablePayable
Major Funds:
General Fund $392,396$2,280
Municipal State Aid Street - 294,973
Capital Equipment Replacement General Gov't 499,000
Water 12,040398,000
Sewer 29,598 -
Storm Sewer - 101,000
Nonmajor funds 27,308164,089
Total $960,342$960,342
Of these interfund balances $22,172 are for services provided in 2011 and reimbursed in 2012. All other interfund
balances at December 31, 2011, reflect lending arrangements to cover deficit cash balances at year end, 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, 2011 are as follows:
CapitalCapital EqpCapitalCapital Storm Other
Imprvmts GenReplacementImprvmtsImprvmtsWaterSewerLiquor GovtlInternal
GeneralGovt BldgGen GovtPIRDevelopmentUtilityUtilityFundFundsServiceTotal
Transfers out:
Major funds:
Governmental:
General $ - $22,536$50,000$16,154$ - $ - $ - $ - $100,000$45,000$233,690
Public Safety Cntr Capt Bldg - - - - - - - - 329,507 - 329,507
Municipal State Aid Street 1,000 - - - - - - - 122,000 - 123,000
Capital Imprvmts Gen Govt Bldg - - - - - - - - - 188,272188,272
Capital Imprvmts PIR - - - - - - - - 566,084 - 566,084
Capital Equip Replacement - Gen Govt - - - - - - 8,750 - - - 8,750
Enterprise: -
Water 90,963 - - - - - - - - 45,000135,963
Sewer 90,962 - - - - 2,943 - - - 45,000 138,905
Refuse 72,859 - - - - - - - - 45,000117,859
Liquor 53,955 - - - - - - - - 45,00098,955
Nonmajor funds: - - -
Other governmental funds 60,157 - - - 90,000 - - - 199,60060,000409,757
Internal service funds 1,500 - 16,343 - - - - - - 35,00052,843
Total $371,396$22,536$66,343$16,154$90,000$2,943$8,750 $0$1,317,191$508,272$2,403,585
Governmental
Transfers In
Nonmajor FundsMajor Funds
Enterprise Governmental
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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, 2011, 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 $760,000
GO Public safety center series 2008B None 10,000,0004.30-4.55%8/6/20082/1/20389,810,000
GO Public facilities series 2009A None 3,005,0002.00-4.75%7/1/20092/1/20382,910,000
Taxable GO tax increment bonds series 2009B Tax increment 580,0003.40-5.10%7/1/20092/1/2021 580,000
GO Improvement series 2006A Special assessments2,759,5504.00%12/7/20062/1/20201,345,730
Taxable GO housing imprvmt area series 2008ASpecial assessments975,0005.00-6.05%7/16/20082/1/2024 890,000
GO Public Facilities series 2009A Special assessments605,0002.00-4.75%7/1/20092/1/2019 505,000
Business-type activities:
GO Improvement series 2006A Utility revenues645,4504.00%12/7/20062/1/2017 569,270
GO Utility revenue series 2006A Utility revenues 670,0004.00%12/7/20062/1/2017 440,000
GO Public Facilities series 2009A Utility revenues 325,0002.00-4.75%7/1/20092/1/2019 295,000
Total general obligation bonds outstanding $18,105,000
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
As of December 31, 2011, the annual debt service requirements to maturity for general obligation bonds are as
follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2012 $919,060$711,067$180,940$46,426
2013 882,560676,963192,44039,612
2014 896,500642,527223,50031,773
2015 692,000610,974198,00023,693
2016 729,730582,256200,27016,034
2017 756,000551,436229,000 7,680
2018 725,000519,60640,000 2,400
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$16,800,850$9,612,836$1,304,150$168,418
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, 2011 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$2,790,000
Business-type activities:
Public facility lease revenue series 2007BLiquor revenues5,040,0004.50-5.00%9/19/20072/1/20304,750,000
Total revenue bonds outstanding $7,540,000
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
As of December 31, 2011, the annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2012 $53,000$146,263$155,000$223,768
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$2,790,000$1,996,914$4,750,000$2,542,255
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, 2011, 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$1,928,962 95%$430,992$370,995
Project-specific Private
special assessmentsredevelopment 1,270,148 95%96,870108,712
Project-specific Public/Private
tax increment redevelopment 5,526,209 83%222,773347,491
Water, sewer and storm-Utility system
sewer net revenuesimprovements 1,472,689 59%304,984519,502
Annual appropriationMunicipal store
of liquor net revenuesconstruction 7,292,255 100%380,630381,902
Total Remaining Current Year
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2011, is as follows:
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes$13,855,000$ - ($1,156,569)$12,698,431$390,000
General obligation bonds with other pledged revenues 4,556,750 - (454,451)4,102,299529,000
Revenue bonds 2,838,000 - (48,000)2,790,00053,000
Total bonds payable 21,249,750 - (1,659,020)19,590,730972,000
Compensated absences 866,723625,337(547,371)944,689110,150
Postemployment benefits other than pensions 30,66172,765(44,665)58,761 -
Total governmental activity long-term liabilities$22,147,134$698,102($2,251,056)$20,594,180$1,082,150
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues$2,128,248$ - ($823,978)$1,304,270$181,000
Revenue bonds 4,900,000 - (150,000)4,750,000155,000
Total bonds payable 7,028,248 - (973,978)6,054,270336,000
Compensated absences 137,148160,354(136,393)161,10918,789
Total business-type activity long-term liabilities $7,165,396$160,354($1,110,371)$6,215,379$354,789
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. The City, the EDA, and the
HRA, are not 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, 2011, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $20,610,000.
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 8 FUND EQUITY
A. The City adopted the provisions of Governmental Accounting Standards Board Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions for the year ended December 31, 2011. This
standard changed fund balance classifications for governmental fund statements. Definitions for the new
classifications are included in Note 1N.
The following fund had a fund deficit as of December 31, 2011. The City will finance this deficit through
internal sources in future years:
Nonmajor Funds:
Special Revenue
Police Grants ($2,782)
($2,782)
B. At December 31, 2011, the City has reserved and designated portions of its various fund equities through
legal restrictions and City Council authorizations. A summary of such reservations and designations are as
follows:
General
Fund
2008A Tax
GO Housing
Imp Bond
PS Center
Capital Bldg
Municipal
State Aid
Street
Capital Imp
General Govt
Bldg
Cap Equip
Replacement
Gen GovtPIR
Capital
Improvement
Development
Nonmajor
Gov'tTotal
Nonspendable:
Prepaid items $80,767$ - $ - $ - $ - $ - $ - $ - $3,046$83,813
Interfund loans - - - - - 405,000 - - - 405,000
Land held for resale - - - - - - 53,300144,2701,747,5471,945,117
Total nonspendable 80,767 0 0 0 0405,00053,300144,2701,750,5932,433,930
Restricted for:
Tax increment - - - - - - - - 727,289727,289
Debt service - 175,155 - - - - - - 1,986,9642,162,119
Police and fire purposes - - - - - - - - 75,54875,548
Culture and recreation purposes - - - - - - - - 293,229293,229
Housing and redevelopment - - - - - - - - 6,3106,310
Total restricted 0175,155 0 0 0 00 03,089,3403,264,495
Committed to:
Cable TV - - - - - - - - 394,605394,605
Culture and recreation purposes - - - - - - - - 304,552304,552
Housing and redevelopment - - - - - - - 1,987,9922,472,4054,460,397
Capital improvement - - - 88,3801,274,562 - 729,046 - 1,448,0033,539,991
Capital equipment - - - - - 4,074,896 - - - 4,074,896
Police and fire purposes 20,134 - - - - - - - - 20,134
Downtown parking maintenance112,461 - - - - - - - - 112,461
Total committed 132,595 0 088,3801,274,5624,074,896729,0461,987,9924,619,56512,907,036
Total $213,362$175,155 $0$88,380$1,274,562$4,479,896$782,346$2,132,262$9,459,498$18,605,461
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
C. The City Council has formally adopted a fund balance policy for the General Fund and the combined
Library Fund, Capital Building Library Fund (non-major funds). The most significant revenue sources
for these funds are property taxes. This revenue source is received in two installments during the
year – June and December. As such, it is the City’s goal to begin each fiscal year with sufficient
working capital to fund operations between each semi-annual receipt of property taxes.
The policy establishes a year end target of unassigned fund balance for the General Fund and
spendable fund balance for the combined Library and Capital Building Library funds equal to at least
45% of the next year’s budgeted expenditures.
At December 31, 2011, both funds have met this goal.
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 General
Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF). These are
cost-sharing, multiple-employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
GERF 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.
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the internet at
www.mnpera.org, or by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651) 296-7460 or 1-800-652-9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. GERF Coordinated Plan members are required to contribute
6.25% of their annual covered salary in 2011. The PEPFF members are required to contribute 9.6% of
their annual covered salary in 2011. The City is required to contribute the following percentages of annual
covered payroll: 7.25% for Coordinated Plan GERF members, and 14.4% for PEPFF members. The
City’s contributions for the last three years, which were equal to the contractually required contributions
for each year as set by state statute, are as follows:
Year Ended December 31,GERFPEPFF
2009$319,601$369,627
2010343,485387,431
2011362,428391,573
Note 10 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 2011, state aid was contributed to the plan. This state aid revenue and the related contribution
expense/expenditure of $65,554 are recognized in the accompanying financial statements for the year
ended December 31, 2011.
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 plan provisions, including 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 2011, plan members contributed $1,860 and the City contributed $1,860.
Note 11 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 2011, 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.
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. The amount received from the State in 2011 for
public safety retirees was $10,771.
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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 current year and the changes in
the City’s net OPEB obligation to the plan are as follows:
Year Ended December 31, 2011
Annual required contribution$78,606
Interest on net OPEB obligation872
Adjustment to annual required contribution(1,462)
Annual OPEB cost78,016
Contributions made by City(46,240)
Increase in net OPEB obligation31,776
Net OPEB obligation-beginning of year30,661
Net OPEB obligation-end of year$62,437
Comparative OPEB information for the curent and three prior years includes the following:
Percentage of
Year EndedAnnual OPEBAnnual OPEBNet OPEB
December 31CostCost ContributedObligation
2008$25,54855%$11,427
200925,89166%21,141
201026,15260%30,661
201178,01620%62,437
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2011, the actuarial accrued liability for benefits was $775,238; all of which was unfunded.
Under the actuarial cost method used, this actuarial accrued 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.
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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. 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 12 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 the actual worker wage base is known and
paid. 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.
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
B. LITIGATION
The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which
the City is a defendant are either covered by insurance or development agreements; of an immaterial
amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs.
C. FEDERAL AND STATE FUNDS
Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment.
Any disallowed claims, including amounts already collected, may constitute a liability of the applicable
funds. The amount, if any, of funds which 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 for construction projects that are in process at
year end. At December 31, 2011, the City’s obligation for such projects was approximately $152,000.
Additionally, under the terms of various tax increment financing agreements, the City has commitments to
reimburse developers for certain qualifying redevelopment costs plus interest. These future
reimbursements are limited, however, to the future tax increment received from certain tax increment
districts. The amount to be paid under these agreements is not determinable at this time. The following
table summarizes the current year activity and contingent portions of these commitments:
TIFDistrict ExpendituresInterestExpendituresInterest
District EndsDeveloperReimbursedPaid AvailableAvailable
R82027Crestview ONDC1$ - $29,956$732,801$278,354
R82027Col Hts Tran Block - 1,612 175,089 37,257
K22019Barnick 1,400 - 42,497 -
K22019Miske 15,5126,196 57,123 -
T62031BNC Bank - 101,641 6,650,000 1,647,975
Current Year Contingent on Future Tax Increment
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 13 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.
Note 14 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements, but may affect the City in future years:
Statement No. 60 Accounting and Financial Reporting for Service Concession Arrangements. The provisions
of this Statement are effective for financial statements for periods beginning after December 15, 2011.
Statement No. 61 The Financial Reporting Entity Omnibus – An Amendment of GASB No. 14 and No. 34. The
provisions of this Statement are effective for financial statements for periods beginning after June 15, 2012.
Statement No. 62 Codification of Accounting and Financial Reporting Guidance Contained in Pre-November
30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2011.
Statement No. 63 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and
Net Position. The provisions of this Statement are effective for financial statements for periods beginning after
December 15, 2011.
Statement No. 65 Items Previously Reported as Assets and Liabilities. The provisions of this Statement are
effective for financial statements for periods beginning after December 15, 2012.
Statement No. 66 Technical Corrections – 2012. The provisions of this Statement are effective for financial
statements for periods beginning after December 15, 2012.
The effect these standards may have on future financial statements is not determinable at this time.
78
REQUIRED SUPPLEMENTARY INFORMATION
79
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, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget2010
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$7,724,711$7,074,915$7,263,658$188,743$6,770,957
Licenses and permits193,200193,200158,385(34,815)179,883
Intergovernmental:
Market value homestead credit - 649,796172,810(476,986)171,455
All other1,087,3031,122,6461,498,355375,7091,485,825
Charges for services598,050635,451589,915(45,536)587,971
Fines and forfeitures131,000131,000146,14015,140159,836
Investment income:
Interest and dividends73,03673,03694,44121,405122,147
Change in fair value16,95816,95852,15035,192(26,141)
Other revenues10,50010,5006,156(4,344)15,435
Total revenues9,834,758 9,907,502 9,982,010 74,508 9,467,368
Expenditures:
General government:
Council 144,267144,267140,8283,439131,924
Manager 412,243412,243398,34613,897402,190
Clerk 72,96772,96765,6437,324108,815
Legal 186,716186,716167,54019,176167,540
Finance 716,204716,204710,0486,156708,741
Assessing 133,517133,517120,23713,280116,163
General government buildings 137,718137,718154,467(16,749)138,731
Capital outlay 60,08660,08628,47531,611 -
Total general government 1,863,718 1,863,718 1,785,584 78,134 1,774,104
Public safety:
Police and animal control 3,633,2283,695,1983,590,327104,8713,557,916
Fire and emergency management1,329,5511,359,3251,334,98224,3431,250,797
Capital outlay 19,00019,00014,7914,209 -
Total public safety 4,981,779 5,073,523 4,940,100 133,423 4,808,713
Public works:
Engineering 340,370340,370279,06261,308268,167
Maintenance 1,035,8211,035,821955,25780,564972,086
Sanitation 123,939123,939101,64422,295101,690
Capital outlay 13,00013,00056,978(43,978)67,004
Total public works 1,513,130 1,513,130 1,392,941 120,189 1,408,947
Other Departments:
Parks and recreation 1,741,9981,741,9981,442,978299,0201,411,042
Contingencies 50,00050,00022,21427,78610,188
Capital outlay - - 9,084(9,084)
Total recreation 1,791,998 1,791,998 1,474,276 317,722 1,421,230
Total expenditures 10,150,625 10,242,369 9,592,901 649,468 9,412,994
Revenues over (under) expenditures (315,867)(334,867)389,109723,97654,374
2011
80
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, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget2010
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Other financing sources (uses):
Sale of capital assets $1,000$1,000$ - ($1,000)$ -
Transfers in 364,559373,559371,397(2,162)699,500
Transfers out (217,536)(217,536)(233,690)(16,154)(207,786)
Total other financing sources (uses)148,023 157,023 137,707 (19,316)491,714
Net change in fund balance ($167,844)($177,844)526,816$704,660 546,088
Fund balance - January 1 5,342,239 4,796,151
Fund balance - December 31 $5,869,055 $5,342,239
2011
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN
For The Year Ended December 31, 2011
Actuarial
Accrued UAAL as a
ActuarialActuarialLiability (AAL)Unfunded Percentage
ValuationValue of - ProjectedAAL Funded Coveredof Covered
Date AssetsUnit Credit(UAAL)Ratio Payroll Payroll
1/1/2008$ - $257,138 $257,1380%N/A N/A
1/1/2011 - 775,238 775,2380%N/A N/A
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2011
Note A BUDGETS
The legal level of budgetary control is at the fund level. The General Fund and the following Special Revenue
Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the
United States of America:
• Nonmajor special revenue funds:
Cable television 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
83
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84
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
85
NONMAJOR GOVERNMENTAL FUNDS
86
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.)
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 12
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
Total
Nonmajor
Special DebtCapital Governmental
Assets RevenueServiceProjectFunds
Cash and investments $3,595,692$3,028,152$1,446,858$8,070,702
Receivables:
Accounts 78,476 - - 78,476
Taxes 14,78431,617 - 46,401
Interest 6,500 6,500 3,90016,900
Loans - - - -
Due from other governmental units 101,817 - 92,323194,140
Interfund receivable 27,308 - - 27,308
Prepayments 3,046 - - 3,046
Real estate held for resale 149,9881,204,086393,4731,747,547
Total assets $3,977,611$4,270,355$1,936,554$10,184,520
Liabilities and Fund Balance
Liabilities:
Accounts payable $74,316$98,927 $199$173,442
Accrued salaries and withholdings payable 21,931 - - 21,931
Contracts payable - retained percentage - 3,06310,72713,790
Due to other governmental units 37,690 - - 37,690
Interfund payable 33,04646,89284,152164,090
Deferred revenue 85,96725,239 - 111,206
Deposits 27,759 - - 27,759
Total liabilities 280,709174,12195,078549,908
Fund balance:
Nonspendable 153,0341,204,086393,4731,750,593
Restricted 375,0882,890,407 - 3,265,495
Committed 3,171,562 - 1,448,0034,619,565
Assigned - - - -
Unassigned (2,782)1,741 - (1,041)
Total fund balance 3,696,9024,096,2341,841,4769,634,612
Total liabilities and fund balance $3,977,611$4,270,355$1,936,554$10,184,520
88
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, 2011
Total
Nonmajor
Special Debt CapitalGovernmental
RevenueService Project Funds
Revenues:
Taxes $1,063,001$807,814$ - $1,870,815
Tax increment collections - 548,960 - 548,960
Licenses and permits 219,972 - - 219,972
Intergovernmental 255,358 44,816 92,323392,497
Charges for services 1,016,808 - - 1,016,808
Fines and forfeitures 23,949 - - 23,949
Investment income:
Interest and dividends 43,289 38,900 23,900106,089
Change in fair value 22,300 21,400 13,300 57,000
Other revenues 53,218 - 773 53,991
Total revenues 2,697,895 1,461,890 130,296 4,290,081
Expenditures:
Current:
General government 84,787 - 561 85,348
Public safety 21,130 - 11,117 32,247
Public works - 900 250 1,150
Cultureandrecreation 821406 31647 853053Culture and recreation 821,406 - 31,647 853,053
Community development 1,196,331 29,539 - 1,225,870
Capital outlay:
Public works - - 531,273531,273
Community development 13,273 517 - 13,790
Debt service:
Principal retirement - 1,614,022 - 1,614,022
Interest and fiscal charges - 883,110 - 883,110
Developer incentives - 181,638 - 181,638
Total expenditures 2,136,927 2,709,726 574,848 5,421,501
Revenues over (under) expenditures 560,968 (1,247,836)(444,552)(1,131,420)
Other financing sources (uses):
Transfers in 5,2001,211,991100,0001,317,191
Transfers out (215,357)(194,400) - (409,757)
Total other financing sources (uses)(210,157)1,017,591 100,000 907,434
Net change in fund balance 350,811 (230,245)(344,552)(223,986)
Fund balance - January 1 3,346,0914,326,4792,186,0289,858,598
Fund balance - December 31 $3,696,902$4,096,234$1,841,476$9,634,612
89
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90
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.
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.
Special Projects Fund 226 – established to monitor revenues from special projects and related
expenditures.
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 of community development programs funded by or passed through Anoka County
to the City.
91
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92
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 to foster
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.
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 operate
a senior housing complex.
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.
93
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2011
Cable
Television
Fund 225
Police
Forfeiture
Fund 265
Police
Community
Programs Fund
270
Police Grants
Fund 272
Library Fund
240
Assets
Cash and investments $359,661$56,587$ - $ - $168,694
Receivables:
Accounts 43,456 - - - -
Taxes - - - - -
Interest 1,000 - - - 700
Loans - - - - -
Due from other governmental units - - - 10,800 -
Interfund receivable - - - - -
Prepayments - - - - 3,046
Real estate held for resale - - - - -
Total assets $404,117 $56,587 $0 $10,800 $172,440
Liabilities and Fund Balance
Liabilities:
Accounts payable $9,512$ - $ - $427$10,845
Accrued salaries and withholdings payable - - - - 11,279
Due to other governmental units - - - - 2,770
Interfund payable - - - 13,155 -
Deferred revenue - 41,979 - - -
Deposits - - - - -
Total liabilities 9,51241,979 013,58224,894
Fund balance:
Nonspendable - - - - 3,046
Restricted - 14,608 - - -
Committed 394,605 - - - 144,500
Assigned - - - - -
Unassigned - - - (2,782) -
Total fund balance 394,60514,608 0(2,782)147,546
Total liabilities and fund balance $404,117 $56,587 $0 $10,800 $172,440
94
Statement 14
After-School
Programs Fund
261
Contributed
Projects -
Recreation -
Fund 881
Contributed
Projects -
Other - Fund
883
Special
Projects
Fund 226
Community
Development
Fund 201
Anoka
County
Comm Dev
Programs
Fund 202
EDA Admin
Fund 204
(Component
Unit)
HRA Funds
(Component
Unit)
Total
Nonmajor
Special
Revenue
Funds
$156,759$130,416$224,852$371,594$219,438$7,910$167,446$1,732,335$3,595,692
- - - - 500 - 31,9242,59678,476
- - - - - - 14,784 - 14,784
400 400 600900 600 - 2001,7006,500
- - - - - - - - -
4,828 - - - - - - 86,189101,817
- - - - - - 27,308 - 27,308
- - - - - - - - 3,046
- - - - - 149,988 - - 149,988
$161,987 $130,816 $225,452 $372,494 $220,538 $157,898 $241,662 $1,822,820 $3,977,611
$1,648$2,098$ - $ - $1,101$1,600$428$46,657$74,316
287 - - - 4,394 - 5,971 - 21,931
- - - - - - - 34,92037,690
- - - - - - - 19,89133,046
- - - 29,054 - - 12,6392,29585,967
- - - - 500 - - 27,25927,759
1,9352,098 029,0545,9951,60019,038131,022280,709
- - - - - 149,988 - - 153,034
- 128,718225,452 - - 6,310 - - 375,088
160,052 - - 343,440214,543 - 222,6241,691,7983,171,562
- - - - - - - - -
- - - - - - - - (2,782)
160,052128,718225,452343,440214,543156,298222,6241,691,7983,696,902
$161,987 $130,816 $225,452 $372,494 $220,538 $157,898 $241,662 $1,822,820 $3,977,611
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2011
3
Cable
Television
Fund 225
Police
Forfeiture
Fund 265
Police
Community
Programs
Fund 270
Police Grants
Fund 272
Library Fund
240
Revenues:
Taxes$ - $ - $ - $ - $757,620
Licenses and permits - - - - -
Intergovernmental - - - 11,303 -
Fees/program revenues174,668 - - - 8,983
Rents - - - - -
Fines and forfeitures - 8,428 - - 15,521
Investment income:
Interest and dividends6,100 - - - 4,600
Change in fair value3,400 - - - 2,500
Other revenues:
Contributions - - - - -
Miscellaneous - - - - 60
Total revenues184,1688,428011,303789,284
Expenditures:
Personal services2,273 - - - 548,490
Supplies14,5476,500 - 13,443119,382
Other services and charges 39,969 545 - 64280,930
Capital outlay - 979 - - -
Total expenditures 56,7898,024 014,085748,802
Revenues over (under) expenditures 127,379 404 0(2,782)40,482
Other financing sources (uses):
Transfers in - - - - -
Transfers out (66,668) - - - (32,469)
Sale of capital assets - - - - -
Total other financing sources (uses)(66,668)0 0 0(32,469)
Net change in fund balance 60,711 404 0(2,782)8,013
Fund balance - January 1 333,89414,204 - - 139,533
Fund balance - December 31 $394,605 $14,608 $0 ($2,782)$147,546
96
Statement 15
After-School
Programs
Fund 261
Contributed
Projects -
Recreation -
Fund 881
Contributed
Projects -
Other - Fund
883
Special
Projects Fund
226
Community
Development
Fund 201
Anoka
County
Comm Dev
Programs
Fund 202
EDA Admin
Fund 204
(Component
Unit)
HRA Funds
(Component
Unit)
Total
Nonmajor
Special
Revenue
Funds
$ - $ - $ - $ - $ - $ - $305,381$ - $1,063,001
- - - - 219,972 - - - 219,972
46,046 - - - - 6,00015,259176,750255,358
21,5251,094 - 19,860 - - 43,740 - 269,870
- - - 82,352 - - - 664,586746,938
- - - - - - - - 23,949
2,4002,2004,0005,7003,700 - 1,50013,08943,289
1,3001,2002,2003,1002,100 - 8005,70022,300
- 26,04011,035 - - - - - 37,075
- - - - 20 - - 16,06316,143
71,27130,53417,235111,012225,7926,000366,680876,1882,697,895
29,482 - - - 227,347 - 215,09437,0001,059,686
7,46615,95727,433 - 3,119 - 3,33331,723242,903
17,2332,466 565 - 13,3246,00013,585645,806821,065
- - - - - 2,439 - 9,85513,273
54,18118,42327,998 0243,7908,439232,012724,3842,136,927
17,09012,111(10,763)111,012(17,998)(2,439)134,668151,804560,968
- - 5,200 - - - - - 5,200
- - - - (13,110) - (103,110) - (215,357)
- - - - - - - - -
0 05,200 0(13,110)0(103,110)0(210,157)
17,09012,111(5,563)111,012(31,108)(2,439)31,558151,804350,811
142,962116,607231,015232,428245,651158,737191,0661,539,9943,346,091
$160,052 $128,718 $225,452 $343,440 $214,543 $156,298 $222,624 $1,691,798 $3,696,902
97
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, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Franchise fees$168,000$168,000$174,668$6,668$171,766
Investment income:
Interest and dividends - - 6,1006,1005,900
Change in fair value - - 3,4003,400(1,400)
Total revenues168,000168,000184,16816,168176,266
Expenditures:
Personal services 6,4646,4642,2734,1912,042
Supplies 21,65021,65014,5477,103 70
Other services and charges 34,66034,66039,969(5,309)58,130
Capital outlay - - - - -
Total expenditures 62,77462,77456,7895,98560,242
Revenues over expenditures 105,226105,226127,37922,153116,024
Other financing sources (uses):
Transfers out (66,668)(66,668)(66,668) - (56,668)
Net change in fund balance $38,558 $38,558 60,711$22,153 59,356
Fund balance - January 1 333,894 274,538
Fund balance - December 31 $394,605 $333,894
2011
98
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 17
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Forfeitures $8,428$14,396
Expenditures:
Supplies 6,5001,502
Other services and charges545 -
Capital outlay 979 -
Total expenditures 8,0241,502
Revenues over (under) expenditures404 12,894
Fund balance - January 114,2041,310
Fund balance - December 31$14,608 $14,204
99
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, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental $ - $ - $ - $ - $2,414
Expenditures:
Personal services 4,864 - - - 9,761
Supplies 10,636 - - - 9,743
Other services and charges 4,500 - - - 30
Total expenditures 20,000 0 0 0 19,534
Revenues over (under) expenditures (20,000)0 0 0 (17,120)
Other financing sources (uses):
Transfers in - - - - 9,000
Transfers out - - - - (36,370)
Total other financing sources (uses) - - - - (27,370)
Net change in fund balance ($20,000)$0 0 $0 (44,490)
Fund balance - January 1 - 44,490
Fund balance - December 31 $0 $0
2011
100
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE GRANTS FUND 272 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Intergovernmental $11,303 $16,026
Miscellaneous - -
Total revenues 11,30316,026
Expenditures:
Supplies 13,44314,373
Other services and charges6421,653
Capital outlay - -
Total expenditures14,08516,026
Revenues over expenditures(2,782)0
Fund balance - January 1 - -
Fund balance - December 31($2,782)$0
101
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, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes $757,620$757,620$757,620$ - $738,393
Charges for services 10,30010,300 8,983(1,317)9,805
Fines 17,00017,00015,521(1,479)14,461
Investment income:
Interest and dividends 4,500 4,500 4,600 1004,400
Change in fair value - - 2,500 2,500(1,100)
Other revenues:
Miscellaneous 225 225 60 (165) -
Contributions 800 800 - (800) -
Total revenues 790,445 790,445 789,284 (1,161)765,959
Expenditures:
Personal services 549,691569,423548,49020,933525,743
Supplies 124,475124,475119,382 5,09398,719
Other services and charges 106,53586,80380,930 5,87386,354
Total expenditures 780,701 780,701 748,802 31,899 710,816
Revenues over (under) expenditures 9,744 9,744 40,482 30,738 55,143
Other financing sources (uses):
Transfers out (27,269)(27,269)(32,469)(5,200)(18,864)
Sale of capital assets 25 25 - (25) -
Total other financing sources (uses)(27,244)(27,244)(32,469)(5,225)(18,864)
Net change in fund balance ($17,500)($17,500)8,013 $25,513 36,279
Fund balance - January 1 139,533 103,254
Fund balance - December 31 $147,546 $139,533
2011
102
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - AFTER SCHOOL PROGRAMS FUND 261 Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Intergovernmental $46,046$55,787
Program revenue 21,52519,622
Investment income:
Interest and dividends2,4002,500
Change in fair value1,300(600)
Total revenues71,27177,309
Expenditures:
Personal services 29,48230,355
Supplies 7,4669,707
Other services and charges 17,23317,217
Total expenditures 54,18157,279
Revenues over expenditures 17,09020,030
Fund balance - January 1 142,962122,932
Fund balance - December 31$160,052 $142,962
103
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS FUND 881 Statement 22
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Investment income:
Program revenue $1,094$ -
Interest and dividends2,2002,400
Change in fair value1,200(600)
Other revenue:
Contributions 26,04037,687
Miscellaneous - 616
Total revenues 30,534 40,103
Expenditures:
Supplies 15,957 11,599
Other services and charges 2,466 100
Capital outlay - -
Total expenditures 18,423 11,699
Revenues over expenditures 12,111 28,404
Fund balance - January 1 116,607 88,203
Fund balance - December 31 $128,718 $116,607
104
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 23
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Investment income:
Interest and dividends$4,000$5,900
Change in fair value 2,200(1,400)
Contributions 11,0358,204
Miscellaneous - 15
Total revenues17,23512,719
Expenditures:
Personal services - -
Supplies 27,43311,960
Other services and charges5651,250
Capital outlay - -
Total expenditures27,998 13,210
Revenues over expenditures (10,763)(491)
Other financing sources (uses):
Transfers in 5,200 1,950
Transfers out - (43,242)
5,200 (41,292)
Net change in fund balance (5,563)(41,783)
Fund balance - January 1 231,015 272,798
Fund balance - December 31 $225,452 $231,015
105
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 24
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Fees/program revenue $19,860$20,086
Rents 82,35270,653
Investment income:
Interest and dividends 5,7005,700
Change in fair value 3,100(1,400)
Total revenues 111,012 95,039
Expenditures:
Other services and charges - -
Revenues over expenditures 111,012 95,039
Other financing sources (uses):
Transfers out - (42,000)
Net change in fund balance 111,012 53,039
Fund balance - January 1 232,428179,389
Fund balance - December 31 $343,440$232,428
106
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT FUND 201 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Licenses and permits$219,500$219,500$219,972$472$299,265
Investment income:
Interest and dividends - - 3,7003,7004,000
Change in fair value - - 2,1002,100(1,000)
Miscellaneous - - 2020 -
Total revenues219,500 219,500 225,792 6,292 302,265
Expenditures:
Personal services225,148225,148227,347(2,199)191,235
Supplies4,7304,7303,1191,6111,659
Other services and charges20,83520,83513,3247,51113,421
Total expenditures250,713 250,713 243,790 6,923 206,315
Revenues over (under) expenditures(31,213)(31,213)(17,998)13,215 95,950
Other financing sources (uses):
Transfers in - - - - -
Transfers out(13,110)(13,110)(13,110) - (12,666)
Total other financing sources (uses)(13,110)(13,110)(13,110)0 (12,666)
Net change in fund balance($44,323)($44,323)(31,108)$13,215 83,284
Fund balance - January 1245,651162,367
Fund balance - December 31$214,543 $245,651
2011
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY COMM DEV PROGRAMS FUND 202 Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2011
With Comparative Amounts For The Year Ended December 31, 2010
20112010
Revenues:
Intergovernmental $6,000$149,727
Investment income:
Interest and dividends - -
Total revenues6,000149,727
Expenditures:
Other services and charges6,0004,887
Capital outlay 2,439 15,858
Total expenditures 8,439 20,745
Revenues over expenditures (2,439)128,982
Fund balance - January 1 158,737 29,755
Fund balance - December 31 $156,298 $158,737
108
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 27
BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204
(COMPONENT UNIT)
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes $325,185$340,444$305,381($35,063)$324,542
Fees/program revenues - - 43,74043,740 -
Intergovernmental:
Market value homestead credit - 15,25915,259 - 14,692
Investment income:
Interest and dividends - - 1,500 1,500 900
Change in fair value - - 800 800 (200)
Total revenues 325,185355,703366,68010,977339,934
Expenditures:
Personal services 252,197252,197215,09437,103253,707
Other services and charges 29,54429,54413,58515,95916,571
Supplies 4,400 4,400 3,333 1,067 1,063
Capital outlay - - - - -
Total expenditures 286,141286,141232,01254,129271,341
Revenues over (under) expenditures 39,04469,562134,66865,10668,593
Other financing sources (uses):
Transfers in - - - - 37,500
Transfers out (103,110)(103,110)(103,110) - (63,666)
Total other financing sources (uses)(103,110)(103,110)(103,110)0 (26,166)
Net change in fund balance ($64,066)($33,548)31,558$65,10642,427
Fund balance - January 1 191,066 148,639
Fund balance - December 31 $222,624 $191,066
2011
109
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 28
COMBINING BALANCE SHEET
December 31, 2011
ParkviewParkviewTotal
VillaVillaHousing and
NorthSouthRedevelopment
Fund 203Fund 213Authority
Assets
Cash and investments $1,000,165 $732,170 $1,732,335
Receivables:
Accounts 2,593 3 2,596
Interest - 1,700 1,700
Interfund receivable - - -
Due from other governmental units 86,189 - 86,189
Total assets $1,088,947 $733,873 $1,822,820
Liabilities and Fund Balance
Liabilities:
Accounts payable $35,970 $10,687 $46,657
Due to other governmental units 22,204 12,716 34,920
Interfund payable 13,638 6,253 19,891
Deferred revenue 1,229 1,066 2,295
Deposits 17,556 9,703 27,259
Total liabilities 90,597 40,425 131,022
Fund balance:
Committed 998,350 693,448 1,691,798
Total fund balance 998,350 693,448 1,691,798
Total liabilities and fund balance $1,088,947 $733,873 $1,822,820
110
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 29
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2011
Parkview Parkview Total
Villa Villa Housing and
North SouthRedevelopment
Fund 203 Fund 213 Authority
Revenues:
Intergovernmental $176,750 $ - $176,750
Rents 351,037 313,549 664,586
Investment income:
Interest and dividends 2,789 10,300 13,089
Change in fair value - 5,700 5,700
Other revenues:
Miscellaneous 9,907 6,156 16,063
Total revenues 540,483 335,705 876,188
Expenditures:
Personal services 25,500 11,500 37,000
Supplies 21,187 10,536 31,723
Other services and charges 446,002 199,804 645,806
Capital outlay 9,855 - 9,855
Total expenditures 502,544 221,840 724,384
Revenues over expenditures 37,939 113,865 151,804
Fund balance - January 1 960,411 579,583 1,539,994
Fund balance - December 31 $998,350 $693,448 $1,691,798
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY- Statement 30
PARKVIEW VILLA NORTH FUND 203
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental revenue $357,500$357,500$176,750($180,750)$492,940
Rents 324,260324,260351,03726,777341,456
Investment income:
Interest and dividends 6,8916,8912,789(4,102)16,500
Change in fair value - - - - (4,000)
Other revenues - - 9,9079,9079,540
Total revenues 688,651688,651540,483(148,168)856,436
Expenditures:
Personal services 26,01326,01325,500 51325,380
Supplies 21,65021,65021,187 46331,561
Other services and charges 457,397457,397446,00211,395420,046
Capital outlay 112,000112,0009,855102,145280,730
Total expenditures 617,060617,060502,544114,516757,717
Revenues over (under) expenditures $71,591$71,59137,939($33,652)98,719
Fund balance - January 1 960,411 861,692
Fund balance - December 31 $998,350 $960,411
2011
112
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY - Statement 31
PARKVIEW VILLA SOUTH FUND 213
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
With Comparative Actual Amounts For The Year Ended December 31, 2010
Variance with
Budgeted Amounts Final Budget-2010
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Rents $306,479$306,479$313,549$7,070$302,408
Investment income:
Interest and dividends - - 10,30010,30011,100
Change in fair value - - 5,700 5,700(2,700)
Other 2,650 2,650 6,156 3,506 6,110
Total revenues 309,129309,129335,70526,576316,918
Expenditures:
Personal services 11,68711,68711,500 18711,402
Supplies 12,12512,12510,536 1,589 9,337
Other services and charges 205,126205,126199,804 5,322197,303
Capital outlay 35,00035,000 - 35,000 -
Total expenditures 263,938263,938221,84042,098218,042
Revenues over expenditures $45,191$45,191113,865$68,67498,876
Fund balance - January 1 579,583 480,707
Fund balance - December 31 $693,448 $579,583
2011
113
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114
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.
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2011
G.O.
Improvement/
Revenue
Bonds 2003A
Fund 388
G.O.
Improvement/
Revenue
Bonds 2006A
Fund 340
G.O. Street
Rehabilitation
Bonds 2007
Fund 341
G.O. Public
Safety Center
Bonds 2008B
Fund 343
Assets
Cash and investments $ - $720,994$112,000$494,361
Receivables:
Taxes - - 9373,172
Interest - 1,300 100800
Land held for resale - - - -
Total assets$0$722,294$113,037$498,333
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ -
Contracts payable - retained percentage
Due to other governmental units - - - -
Deferred revenue:
Interfund payable - - - -
Property taxes - delinquent - - - -
Total liabilities 0 0 0 0
Fund balance (deficit):
Nonspendable - - - -
Restricted - 722,294113,037498,333
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balance (deficit)0722,294113,037498,333
Total liabilities and fund balance $0$722,294$113,037$498,333
116
Statement 32
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
TIF
Transition
Block Fund
389
TIF 47th and
Central
Avenue
Fund 371
TIF Huset
Park Area
Fund 372
EDA TIF
Revenue
Bonds 2007
Fund 373
Total
Nonmajor
Debt Service
Funds
$405,868$279,723$41,978 $74,584$60,864$383,321$206,901$247,558$3,028,152
1,384 - 3,781 51 - 16,1126,180 - 31,617
700900 - 2001001,6004004006,500
- 632,537 - - - 571,549 - - 1,204,086
$407,952$913,160$45,759 $74,835$60,964$972,582$213,481$247,958$4,270,355
$ - $308$ - $11,554$16,590$38,175$32,300$ - $98,927
695 2,368 3,063
- - - - - - - - -
- - 28,83518,057 - - - - 46,892
- - 3,781 - - 15,5625,896 - 25,239
01,00332,61629,61116,59056,10538,1960174,121
- 632,537 - - - 571,549 - - 1,204,086
406,211279,62013,14345,22444,374344,928175,285247,9582,890,407
- - - - - - - - -
- - - - - - - - -
1,741 - - - - - 2,600(2,600)1,741
407,952912,157 13,143 45,22444,374916,477177,885245,3584,096,234
$407,952$913,160$45,759 $74,835$60,964$972,582$216,081$245,358$4,270,355
EDA Component Unit
117
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, 2011
G.O.
Improvement/
Revenue Bonds
2003A Fund
388
G.O.
Improvement/
Revenue Bonds
2006A Fund
340
G.O. Street
Rehabilitation
Bonds 2007
Fund 341
G.O. Public
Safety Center
Bonds 2008B
Fund 343
G.O. Public
Facilities
Bonds 2009A
Fund 344
Revenues:
Taxes $ - $ - $127,754$468,597$211,463
Tax increment collections - - - - -
Intergovernmental - - - - -
Investment income:
Interest and dividends - 8,000 6004,800 2,300
Change in fair value - 4,400 3002,700 1,200
Total revenues 012,400128,654476,097214,963
Expenditures:
Current:
Other services and charges 900 - - - -
Capital outlay:
Community development - - - - -
Debt service:
Principal retirement 720,238410,78490,000190,000155,000Principal retirement 720,238 410,784 90,000 190,000 155,000
Interest and fiscal charges 32,56862,27634,601436,968136,416
Issuance costs - - - - -
Developer incentives - - - - -
Total expenditures 753,706473,060124,601626,968291,416
Revenues over (under) expenditures (753,706)(460,660)4,053(150,871)(76,453)
Other financing sources (uses):
Transfers in 269,651330,281 - 238,490179,169
Transfers out - - - - -
Total other financing sources (uses)269,651330,281 0238,490179,169
Net change in fund balance (484,055)(130,379)4,05387,619102,716
Fund balance (deficit) - January 1 484,055852,673108,984410,714305,236
Fund balance (deficit) - December 31 $0$722,294$113,037$498,333$407,952
118
Statement 33
Tax Increment
Bonds Fund
376
Sheffield TIF
Redevelopment
Fund 377
TIF Multi-Use
Redevelopment
Plan Fund 385
TIF Transition
Block Fund
389
TIF 47th and
Central
Avenue Fund
371
TIF Huset
Park Area
Fund 372
EDA TIF
Revenue
Bonds 2007
Fund 373
Total
Nonmajor
Debt Service
Funds
$ - $ - $ - $ - $ - $ - $ - $807,814
- 72,20931,02834,503116,967294,253 - 548,960
- 5,530 373 - 3,19135,722 - 44,816
5,600 200 1,100 80010,2002,6002,70038,900
3,100 100 600 5005,6001,4001,50021,400
8,70078,03933,10135,803135,958333,9754,2001,461,890
17,0661,346 1,7862,0702,3724,899 - 30,439
(7,967) - - - 8,484 - - 517
- - - - - - 48,0001,614,022
EDA Component Unit
48,000 1,614,022
- 4,332 - - 26,410 - 149,539883,110
- - - - - - - -
- - 23,10831,568 - 126,962 - 181,638
9,0995,67824,89433,63837,266131,861197,5392,709,726
(399)72,361 8,2072,16598,692202,114(193,339)(1,247,836)
- - - - - - 194,4001,211,991
- - - - - (194,400) - (194,400)
0 0 0 0 0(194,400)194,4001,017,591
(399)72,361 8,2072,16598,6927,7141,061(230,245)
912,556(59,218)37,01742,209817,785170,171244,2974,326,479
$912,157$13,143$45,224$44,374$916,477$177,885$245,358$4,096,234
119
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120
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the
year:
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 to foster
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 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.
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
assets 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.
121
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122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 34
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2011
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund 412
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
Assets
Cash and investments $ - $4,700$943,408$175,446$67,800$255,504$1,446,858
Due from other governments - 92,323 - - - - 92,323
Receivables:
Interest - 6002,600500200 - 3,900
Real estate held for resale 393,473 - - - - - 393,473
Total assets $393,473$97,623$946,008$175,946$68,000$255,504$1,936,554
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $199$ - $ - $ - $ - $199
Contracts payable - retained percentage - 10,727 - - - - 10,727
Interfund payable - 84,152 - - - - 84,152
Total liabilities 095,078 0 0 0 095,078
Fund balance:
Nonspendable 393,473 - - - - - 393,473
Restricted - - - - - - -
Committed - 2,545946,008175,94668,000255,5041,448,003
Assigned - - - - - - -
Unassigned - - - - - - -
Total fund balance 393,4732,545946,008175,94668,000255,5041,841,476
Total liabilities and fund balance$393,473$97,623$946,008$175,946$68,000$255,504$1,936,554
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 35
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2011
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund
412
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
Revenues:
Intergovernmental $ - $92,323$ - $ - $ - $ - $92,323
Charges for services - - - - - - -
Investment income:
Interest and dividends - 3,40016,0003,1001,400 - 23,900
Change in fair value - 1,9008,9001,700800 - 13,300
Contributions - 773 - - - - 773
Total revenues 098,39624,9004,8002,200 0130,296
Expenditures:
Current:
Personal services - - - - - - -
Other services and charges - 31,647 25011,117561 - 43,575
Capital outlay - 383,883 - - 147,390 - 531,273
Total expenditures 0415,530 25011,117147,951 0574,848
Revenue over (under) expenditures0(317,134)24,650(6,317)(145,751)0(444,552)
Other financing sources (uses):
Transfers in - 50,00050,000 - - - 100,000
Transfersout -------Transfers out - - - - - - -
Total other financing sources (uses)050,00050,000000100,000
Net change in fund balance0(267,134)74,650(6,317)(145,751)0(344,552)
Fund balance - January 1393,473269,679871,358182,263213,751255,5042,186,028
Fund balance - December 31$393,473$2,545$946,008$175,946$68,000$255,504$1,841,476
124
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 municipal liquor stores.
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 36
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals for December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets 20112010
Current assets:
Cash and cash equivalents $18,705$498,768$ - $41,937$ - $559,410$738,512
Receivables:
Accounts (net of allowance for
uncollectables)543,527 - - - - 543,527532,616
Interest 1,9001,400 - 200 - 3,5003,800
Interfund receivable 695,481 - - 140,805(824,245)12,04118,947
Inventory - at cost 1,712 - - - - 1,7122,143
Total current assets 1,261,325500,168 0182,942(824,245)1,120,1901,296,018
Noncurrent assets:
Capital assets:
Land 45,223 - - - - 45,22345,223
Buildings 559,826 - - - - 559,826559,826
Equipment 462,515 - - - - 462,515456,629
Infrastructure 7,524,209 - - - - 7,524,2097,420,389
Construction in process - - 479,626 - - 479,626161,470
Total capital assets 8,591,773 0479,626 0 09,071,3998,643,537
Less: accumulated depreciation (4,044,729) - - - - (4,044,729)(3,840,014)
Total capital assets (net of
accumulated depreciation)4,547,044 0479,626 0 05,026,6704,803,523
Total noncurrent assets 4,547,044 0479,626 0 05,026,6704,803,523
Total assets 5,808,369500,168479,626182,942(824,245)6,146,8606,099,541
Totals
Liabilities
Current liabilities:
Accounts payable 7,933 - 10,338 - - 18,2717,859
Accrued salaries and withholdings payable5,877 - - - - 5,8779,734
Due to other governmental units 96,976 - 205,722 - - 302,69892,292
Interfund payable - - 824,245398,000(824,245)398,000 -
Accrued interest payable - - - 16,795 - 16,79527,049
Deposits - - - - - - -
Compensated absences payable - current 3,330 - - - - 3,3303,229
Bonds payable - current - - - 152,880 - 152,880191,805
Total current liabilities 114,116 01,040,305567,675(824,245)897,851331,968
Noncurrent liabilities:
Compensated absences payable - noncurrent25,222 - - - - 25,22221,291
Bonds payable - noncurrent - - - 951,490 - 951,4901,578,768
Total noncurrent liabilities 25,222 0 0951,490 0976,7121,600,059
Total liabilities 139,338 01,040,3051,519,165(824,245)1,874,5631,932,027
Net Assets
Invested in capital assets, net of related debt4,547,044 - 479,626(1,502,370) - 3,524,3002,969,888
Restricted for debt service - 18,569 - 166,147 - 184,716239,987
Unrestricted 1,121,987481,599(1,040,305) - - 563,281957,639
Total net assets $5,669,031 $500,168 ($560,679)($1,336,223)$0 $4,272,297 $4,167,514
126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:20112010
Charges for services:
Customer services $101,111$ - $ - $ - $ - $101,111$123,356
Penalties 55,819 - - - - 55,81954,953
Charges for sales:
Water 2,290,210 - - - - 2,290,2102,236,231
Meter 6,190 - 76,663 - - 82,85383,224
Total operating revenues 2,453,330 076,663 0 02,529,9932,497,764
Operating expenses:
Cost of sales 1,192,653 - - - - 1,192,6531,034,837
Distribution 630,452 - 222,023 - - 852,475622,272
Administration 18,426 - - - - 18,42619,377
Depreciation 204,716 - - - - 204,716209,889
Total operating expenses 2,046,247 0 222,023 0 0 2,268,270 1,886,375
Net income (loss) from operations 407,083 0 (145,360)0 0 261,723 611,389
Nonoperating revenues (expenses):
Investment income 18,60013,200 - 2,200 - 34,00015,600
Miscellaneous revenues 810 - - - - 8105,742
Operating expense - - - (305) - (305) -
Interest and fiscal charges - - - (58,425) - (58,425)(67,492)
Total nonoperating revenues (expenses)19,410 13,200 0 (56,530)0 (23,920)(46,150)
Totals
Net income (loss) before transfers 426,493 13,200 (145,360)(56,530)0 237,803 565,239
Transfers in 106,76325,00014,837328,000(471,657)2,943 -
Transfers out (503,800) - (103,820) - 471,657(135,963)(121,568)
Total transfers (397,037)25,000 (88,983)328,000 0 (133,020)(121,568)
Change in net assets 29,456 38,200 (234,343)271,470 0 104,783 443,671
Total net assets - January 1 5,639,575461,968(326,336)(1,607,693) - 4,167,514 3,723,843
Total net assets - December 31 $5,669,031$500,168($560,679)($1,336,223)$0$4,272,297$4,167,514
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
2011 2010
Cash flows from operating activities:
Cash received from customers $2,519,587 $2,466,710
Cash paid to suppliers for goods and services (1,475,703)(1,441,403)
Cash payments to employees for services (366,427)(356,190)
Net cash provided by (used in) from operating activities 677,457 669,117
Cash flows from noncapital financing activities:
Transfers in 474,600 -
Transfers out (607,620)(121,568)
Interfund receivable repaid by (advanced to) other funds (817,339)(18,947)
Interfund payable (repaid to) advanced by other funds 1,222,245 -
Net cash flows provided by (used in) noncapital financing activities 271,886 (140,515)
Cash flows from capital and related financing activities:
Acquisition of capital assets (427,862)(57,650)
Bonds issued - -
Principal payments - bonds (666,203)(269,029)
Interest and fiscal charges (68,680)(72,103)
Net cash flows provided by (used in) capital and related financing activities (1,162,745)(398,782)
Cash flows from investing activities:
Investment income 34,300 14,300
Net cash flows provided by (used in) investing activities 34,300 14,300
i(d)ihdhil ()Net increase (decrease) in cash and cash equivalents (179,102)144,120
Cash and cash equivalents - January 1 738,512 594,392
Cash and cash equivalents - December 31 $559,410 $738,512
Reconciliation of operating income to net cash flows from operating activities:
Operating income $261,723 $611,389
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 204,716 209,889
Miscellaneous revenues 505 5,742
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (10,911)(36,796)
(Increase) decrease in inventory, at cost 431 552
Increase (decrease) in accounts payable 10,412 (422)
Increase (decrease) in accrued salaries and withholdings payable (3,857)4,620
Increase (decrease) in due to other governmental units 4,684 (127,962)
Adjustment for nonoperating portion 205,722 -
Increase (decrease) in deposits payable - (1,000)
Increase (decrease) in compensated absences payable 4,032 3,105
Total adjustments 415,734 57,728
Net cash flows provided by (used in) operating activities $677,457 $669,117
Noncash capital and related financing activities:
Capital assets purchased/constructed on account $ - $147,171
128
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 39
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals for December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets 20112010
Current assets:
Cash and cash equivalents $725,410$447,888$585,839$ - $1,759,137$1,998,393
Receivables:
Accounts (net of allowance for
uncollectibles)370,478 - - - 370,478345,876
Interest 2,5001,2001,800 - 5,5008,500
Due from other governmental units - current - - - - - -
Interfund receivables 46,394 - 28,835 - 75,229111,289
Prepayments 74,917 - - - 74,91775,091
Total current assets 1,219,699449,088616,474 02,285,2612,539,149
Noncurrent assets:
Capital assets:
Land 36,586 - - - 36,58636,586
Buildings100,426 - - - 100,426100,426
Equipment840,942 - - - 840,942840,942
Construction in progress - - 550,773 - 550,773102,690
Infrastructure5,482,680 - - - 5,482,6805,482,680
Total capital assets6,460,6340550,77307,011,4076,563,324
Less: accumulated depreciation (4,146,206) - - - (4,146,206)(3,975,466)
Net capital assets2,314,4280550,77302,865,2012,587,858
Total noncurrent assets2,314,428 0 550,773 0 2,865,201 2,587,858
Totals
Total assets 3,534,127449,0881,167,247 05,150,4625,127,007
Liabilities
Current liabilities:
Accounts payable 4,786 - 223,393 - 228,1794,388
Accrued salaries and withholdings payable 6,917 - 48 - 6,9653,846
Contracts payable - retained percentage 31,100 - 11,660 - 42,76031,100
Accrued interest payable - - - - - -
Compensated absences payable - current 3,731 - - - 3,7313,513
Bonds payable - current - - - - - -
Total current liabilities46,5340235,1010281,63542,847
Noncurrent liabilities:
Compensated absences payable - noncurrent28,260 - - - 28,26023,161
Bonds payable - noncurrent - - - - - -
Total noncurrent liabilities28,26000028,26023,161
Total liabilities 74,794 0235,101 0309,89566,008
Net Assets
Invested in capital assets, net of related debt2,314,428 - 550,773 - 2,865,2012,587,858
Restricted for debt service - - - - - -
Unrestricted 1,144,905449,088381,373 - 1,975,3662,473,141
Total net assets $3,459,333$449,088$932,146 $0$4,840,567$5,060,999
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt
Service
Account
Interfund
Eliminations
Operating revenues:20112010
Charges for services:
Sewer service charges$1,521,142$ - $ - $ - $ - $1,521,142$1,592,133
Operating expenses:
Disposal 901,096 - - - - 901,096866,612
Collection 367,446 - 204,094 - - 571,540365,978
Administration 19,335 - - - - 19,33519,315
Depreciation 170,740 - - - - 170,740177,083
Total operating expenses1,458,617 0204,094 0 01,662,7111,428,988
Net income (loss) from operations62,525 0(204,094)0 0(141,569)163,145
Nonoperating revenues (expenses)
Investment income 23,60011,80021,932 - - 57,33244,205
Miscellaneous revenues 2,710 - - - - 2,7102,189
Interest and fiscal charges - - - - - - (17)
Total nonoperating
revenues (expenses)26,310 11,800 21,932 0 0 60,042 46,377
Net income (loss) before transfers88,835 11,800 (182,162)0 0 (81,527)209,522
Totals
Net income (loss) before transfers 88,835 11,800 (182,162)0 0 (81,527)209,522
Capital contributions - - - - - - 234,668
Transfers in - 25,000175,324 - (200,324) - -
Transfers out (339,229) - - - 200,324(138,905)(124,048)
Total transfers (339,229)25,000 175,324 0 0 (138,905)110,620
Change in net assets (250,394)36,800 (6,838)0 0 (220,432)320,142
Net assets - January 1 3,709,727412,288938,984 - - 5,060,9994,740,857
Net assets - December 31 $3,459,333$449,088$932,146$0 $0$4,840,567$5,060,999
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from customers $1,499,250 $1,660,882
Cash paid to suppliers for goods and services (1,026,583)(1,183,192)
Cash payments to employees for services (221,327)(214,162)
Net cash flows provided by (used in) operating activities 251,340 263,528
Cash flows from noncapital financing activities:
Transfers in 200,324 -
Transfers out (339,229)(124,048)
Interfund receivable repaid by (advanced to) other funds 36,060 75,339
Net cash flows provided by (used in) noncapital financing activities (102,845)(48,709)
Cash flows from capital and related financing activities:
Acquisition of capital assets (448,083)(339,382)
Principal payments - bonds - (4,653)
Interest and fiscal charges - (100)
Net cash flows provided by (used in) capital and related financing activities (448,083)(344,135)
Cash flows from investing activities:
Investment income 60,332 43,105
Net cash flows provided by (used in) investing activities 60,332 43,105
Net increase (decrease) in cash and cash equivalents (239,256)(86,191)
Cash and cash equivalents - January 1 1,998,393 2,084,584
Cash and cash equivalents - December 31 $1,759,137 $1,998,393
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($141,569)$163,145
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 170,740 177,083
Miscellaneous revenues 2,710 2,189
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (24,602)(16,789)
(Increase) decrease in due from other governmental units - 83,349
(Increase) decrease in prepayments 174 (2,873)
Increase (decrease) in accounts payable 223,791 (111,583)
Increase (decrease) in accrued salaries and withholdings payable 3,119 850
Increase (decrease) in contracts payable -retained percentage 11,660 (35,550)
Increase (decrease) compensated absences payable 5,317 3,707
Total adjustments 392,909 100,383
Net cash flows provided by (used in) operating activities $251,340 $263,528
Noncash capital and related financing activities:
Contribution of capital asset from government $ - $234,668
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 42
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals for December 31, 2010
20112010
Assets
Current assets:
Cash and cash equivalents$789,747$572,189
Receivables:
Accounts (net of allowance for uncollectibles)432,529379,455
Interest 2,200 2,500
Due from other governmental units - -
Total current assets1,224,476954,144
Noncurrent assets:
Capital assets:
Buildings 6,000 6,000
Equipment 108,690 108,690
Total capital assets 114,690 114,690
Less: accumulated depreciation (113,490)(113,190)
Total capital assets (net of accumulated depreciation)1,200 1,500
Total noncurrent assets 1,200 1,500
Total assets 1,225,676 955,644
Liabilities
Current liabilities:
Accounts payable 227,885 106,421
Accrued salaries and withholdings payable 3,007 1,149
Compensated absences payable - current 588 695
Total current liabilities 231,480 108,265
Noncurrent liabilities:
Compensated absences payable - noncurrent 4,451 4,585
Total liabilities 235,931 112,850
Net Assets
Invested in capital assets, net of related debt 1,200 1,500
Unrestricted 988,545 841,294
Total net assets $989,745 $842,794
132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
20112010
Operating revenues:
Refuse service charges1,682,178$1,539,842
Operating expenses:
Collection and disposal1,381,2271,238,703
Administration 59,251 60,994
Recycling 61,127 67,088
Hazardous waste 2,626 2,674
Depreciation 300 300
Total operating expenses 1,504,531 1,369,759
Net income from operations 177,647 170,083
Nonoperating revenues:
Investment income 21,000 10,400
Intergovernmental 66,163 36,653
Total nonoperating revenues 87,163 47,053
Net income before transfers 264,810 217,136
Transfers out (117,859)(105,472)
Change in net assets 146,951 111,664
Total net assets - January 1 842,794 731,130
Total net assets - December 31 $989,745 $842,794
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from customers $1,629,104 $1,491,169
Cash paid to suppliers for goods and services (1,305,582)(1,283,089)
Cash payments to employees for services (75,568)(82,990)
Net cash flows provided by (used in) operating activities 247,954 125,090
Cash flows from noncapital financing activities:
Transfers out (117,859)(105,472)
Intergovernmental 66,163 68,824
Interfund receivable repaid by (advanced to) other funds - -
Net cash flows provided by (used in) noncapital financing activities (51,696)(36,648)
Cash flows from investing activities:
Investment income 21,300 9,800
Net cash flows provided by (used in) investing activities 21,300 9,800
Net increase in cash and cash equivalents 217,558 98,242
Cash and cash equivalents - January 1 572,189 473,947
Cash and cash equivalents - December 31 $789,747 $572,189
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $177,647 $170,083
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 300 300
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (53,074)(48,673)
Increase (decrease) in accounts payable 121,464 2,487
Increase (decrease) in accrued salaries and withholdings payable 1,858 (7)
Increase (decrease) compensated absences payable (241)900
Total adjustments 70,307 (44,993)
Net cash flows provided by (used in) operating activities $247,954 $125,090
134
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals for December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets 20112010
Current assets:
Cash and cash equivalents $ - $ - $3,700$32,411$ - $36,111$6,057
Receivables:
Accounts (net of allowance for
uncollectibles)85,589 - - - - 85,58978,636
Interest - - 400100 - 500900
Interfund receivable - - 148,028 - (148,028) - -
Total current assets 85,589 0152,12832,511(148,028)122,20085,593
Noncurrent assets:
Capital assets:
Land 254,724 - - - - 254,724254,724
Equipment 190,653 - - - - 190,65395,719
Infrastructure 1,477,536 - - - - 1,477,5361,477,536
Construction in process - - 39,348 - - 39,34839,348
Total capital assets 1,922,913 039,348 0 01,962,2611,867,327
Less: accumulated depreciation (632,546) - - - - (632,546)(551,097)
Net capital assets 1,290,367 039,348 0 01,329,7151,316,230
Total noncurrent assets 1,290,367 039,348 0 01,329,7151,316,230
Total assets 1,375,956 0191,47632,511(148,028)1,451,9151,401,823
Liabilities
Current liabilities:
Accounts payable 3,380 - - - - 3,3803,232
Accrued salaries and withholdings payable2,251 - - - - 2,2511,996
Due to other governmental units - - - - - - -
Interfund payable 93,75099,908 - 101,000(148,028)146,630 -
Accrued interest payable - - - 3,307 - 3,3075,731
Compensated absences payable - current 91 - - - - 91171
Bonds payable - current - - - 28,120 - 28,12037,575
Total current liabilities 99,47299,908 0132,427(148,028)183,77948,705
Noncurrent liabilities:
Compensated absences payable - noncurrent 693 - - - - 6931,124
Bonds payable - noncurrent - - - 171,780 - 171,780320,100
Total noncurrent liabilities 693 0 0171,780 0172,473321,224
Total liabilities 100,16599,908 0304,207(148,028)356,252369,929
Net Assets
Invested in capital assets, net of related debt1,290,367 - 39,348(300,900) - 1,028,815958,555
Restricted for debt service - - 4,77529,204 - 33,97947,466
Unrestricted (14,576)(99,908)147,353 - - 32,86925,873
Total net assets $1,275,791($99,908)$191,476($271,696)$0$1,095,663$1,031,894
Totals
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
20112010
Operating revenues:
Storm sewer service charges $349,964$ - $ - $ - $ - $349,964$342,820
Operating expenses:
Collection 184,395 - - - - 184,395183,660
Administration 1,601 - - - - 1,6011,444
Operating expenses - - 20,608 - - 20,608964
Depreciation 81,450 - - - - 81,45074,330
Total operating expenses 267,446 020,608 0 0288,054260,398
Net income (loss) from operations 82,518 0(20,608)0 061,91082,422
Nonoperating revenues (expenses):
Investment income - - 4,100600 - 4,7003,500
Customer service - - - - - - -
Miscellaneous revenues 654 - - - - 6542,266
Interest and fiscal charges - - - (12,245) - (12,245)(14,375)
Total nonoperating
revenues (expenses)654 0 4,100 (11,645)0 (6,891)(8,609)
Net income (loss) before transfers 83,172 0 (16,508)(11,645)0 55,019 73,813
Transfers in 94,9345,00020,14859,000(170,332)8,750 -
Transfers out (84,148)(86,184) - - 170,332 - -
Total transfers and contributions10,786 (81,184)20,148 59,000 0 8,750 0
Change in net assets 93,958 (81,184)3,640 47,355 0 63,769 73,813
Net assets - January 1 1,181,833(18,724)187,836(319,051) - 1,031,894958,081
Net assets - December 31 $1,275,791($99,908)$191,476($271,696)$0$1,095,663$1,031,894
$0
Totals
136
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 47
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
2011 2010
Cash flows from operating activities:
Cash received from customers $343,664 $341,895
Cash paid to suppliers for goods and services (87,642)(129,707)
Cash payments to employees for services (119,070)(101,250)
Net cash flows provided by (used in) operating activities 136,952 110,938
Cash flows from noncapital financing activities:
Interfund receivable repaid by (advanced to) other funds (148,028) -
Interfund payable (repaid to) advanced by other funds 294,658 -
Net cash flows provided by (used in) noncapital financing activities:146,630 0
Cash flows from capital and related financing activities:
Acquisition of capital assets (86,184)(39,348)
Principal payments - bonds (157,775)(138,582)
Interest and fiscal charges (14,669)(16,745)
Net cash flows provided by (used in) capital and related financing activities (258,628)(194,675)
Cash flows from investing activities:
Investment income:
Interest and dividends 5,100 3,400
hfliddb(di)iiiiiNet cash flows provided by (used in) investing activities 5,100 3,400
Net increase (decrease) in cash and cash equivalents 30,054 (80,337)
Cash and cash equivalents - January 1 6,057 86,394
Cash and cash equivalents - December 31 $36,111 $6,057
Reconciliation of operating income to net cash flows from operating activities:
Operating income $61,910 $82,422
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 81,450 74,330
Miscellaneous revenue 654 2,266
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (6,954)(3,191)
Increase (decrease) in accounts payable 148 2,083
Increase (decrease) in accrued salaries and withholdings payable 255 1,333
Increase (decrease) in due to other governmental units - (48,401)
Increase (decrease) compensated absences payable (511)96
Total adjustments 75,042 28,516
Net cash flows provided by (used in) operating activities $136,952 $110,938
137
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138
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 48
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals for December 31, 2010
OperatingDebt ServiceIntrafundTotals
AccountAccountEliminations20112010
Assets
Current assets:
Cash and cash equivalents $276,481$1,300$ - $277,781$7,000
Cash and cash equivalents with fiscal agent - 399,254 - 399,254399,254
Receivables:
Accounts (net of allowance for uncollectables 269 - - 269 416
Interest - 200 - 200 300
Interfund receivable - 265,016(265,016) - -
Due from other governmental units 1,228 - - 1,2281,691
Prepayments 17,50079,931 - 97,43187,529
Inventory - at cost 2,356,582 - - 2,356,5822,320,615
Total current assets 2,652,060745,701(265,016)3,132,7452,816,805
Noncurrent assets:
Capital assets:
Land 2,006,714 - - 2,006,7142,006,714
Buildings 3,915,062 - - 3,915,0623,915,062
Equipment 386,314 - - 386,314375,215
Construction in progress - - - - -
Total capital assets 6,308,090 0 06,308,0906,296,991
Less: accumulated depreciation (673,314) - - (673,314)(524,640)
Net capital assets 5,634,776 0 05,634,7765,772,351
Total noncurrent assets 5,634,776 0 05,634,7765,772,351
Total assets 8,286,836745,701(265,016)8,767,5218,589,156
Liabilities
Current liabilities:
Accounts payable 238,904 - - 238,904117,706
Accrued salaries and withholdings payable 20,127 - - 20,12718,490
Contract payable - retained percentage - - - - -
Due to other governmental units 95,098 - - 95,09887,608
Interfund payable 265,016 - (265,016) - 102,815
Accrued interest payable - 103,747 - 103,747106,828
Compensated absences payable - current 9,698 - - 9,6988,698
Bonds payable - current - 155,000 - 155,000150,000
Total current liabilities 628,843258,747(265,016)622,574592,145
Noncurrent liabilities:
Compensated absences payable - noncurrent73,463 - - 73,46357,345
Bonds payable - noncurrent - 4,595,000 - 4,595,0004,750,000
Total noncurrent liabilities 73,4634,595,000 04,668,4634,807,345
Total liabilities 702,3064,853,747(265,016)5,291,0375,399,490
Net Assets
Invested in capital assets, net of related debt5,634,776(4,270,815) - 1,363,9611,359,130
Restricted for debt service - 162,769 - 162,769150,822
Unrestricted 1,949,754 - - 1,949,7541,679,714
Total net assets $7,584,530($4,108,046)$0$3,476,484$3,189,666
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For Year Ended December 31, 2011
With Comparative Totals for Year Ended December 31, 2010
Operating Accounts
Top Heights
Top Valu Valu II Liquor
Operating revenues:
Charges for sales:
Liquor $1,468,610$1,248,109 $470,871
Beer 1,514,919 1,488,837 558,847
Wine 604,028 570,865 69,422
Other 176,700 184,117 139,637
Total operating revenues 3,764,257 3,491,928 1,238,777
Operating expenses:
Cost of goods sold 2,831,295 2,638,295 944,296
Operating expense 622,076 506,298 182,609
Depreciation 82,962 61,275 4,436
Total operating expenses 3,536,333 3,205,868 1,131,341
Net income from operations $227,924 $286,060 $107,436
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
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
140
Statement 49
TotalDebt
OperatingServiceIntrafundTotals
AccountsAccountEliminations20112010
$3,187,590$ - $ - $3,187,590$2,993,566
3,562,603 - - 3,562,6033,526,323
1,244,315 - - 1,244,3151,145,229
500,454 - - 500,454493,141
8,494,962 0 0 8,494,962 8,158,259
6,413,886 - - 6,413,8866,220,511
1,310,983 - - 1,310,9831,248,331
148,673 - - 148,673147,844
7,873,542 0 0 7,873,542 7,616,686
621,4200 0 621,420 541,573
- 1,500 - 1,5001,105
- - - - -
- (237,147) - (237,147)(244,672)
0 (235,647)0 (235,647)(243,567)
621,420(235,647)0 385,773 298,006
- 390,000(390,000) - -
(488,955) - 390,000(98,955)(140,624)
(488,955)390,0000(98,955)(140,624)
132,465154,3530286,818157,382
7,452,065(4,262,399) - 3,189,6663,032,284
$7,584,530($4,108,046)$0$3,476,484$3,189,666
141
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 50
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2011
With Comparative Amount for Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from customers $8,495,572$8,157,262
Cash paid to suppliers for goods and services (6,684,150)(6,977,383)
Cash payments to employees for services (929,242)(913,123)
Net cash flows provided by (used in) operating activities 882,180 266,756
Cash flows from noncapital financing activities
Interfund payable (repaid to) advanced by other funds (102,815)102,815
Transfers in 390,000 -
Transfers out (488,955)(140,624)
Net cash flows provided by (used in) noncapital financing activities (201,770)(37,809)
Cash flows from capital and related financing activities:
Acquisition of capital assets (11,099)(2,290)
Principal payments - bonds (150,000)(140,000)
Interest and fiscal charges (250,130)(239,712)
Net cash flows provided by (used in) capital and related financing activities (411,229)(382,002)
Cash flows from investing activities:
Investment income 1,600 805Investment income 1,600 805
Net cash flows provided by (used in) investing activities 1,600 805
Net increase (decrease) in cash and cash equivalents 270,781 (152,250)
Total cash and cash equivalents - January 1 406,254 558,504
Total cash and cash equivalents - December 31 677,035 406,254
(Less) cash and cash equivalents with fiscal agent - December 31 (399,254)(399,254)
Cash and cash equivalents - December 31 $277,781 $7,000
142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 50
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2
For Year Ended December 31, 2011
With Comparative Amount for Year Ended December 31, 2010
20112010
Reconciliation of operating income to net cash flows from operating activities:
Operating income $621,420$541,573
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 148,673 147,844
Miscellaneous expense - -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 147 62
(Increase) decrease in due from other governmental units 463 (1,059)
(Increase) decrease in prepayments (9,902)7,837
AAdjustment for nonoperating portion 9,902 (7,837)
(Increase) decrease in inventory, at cost (35,966)(186,258)
Increase (decrease) in accounts payable 121,198 (247,848)
AAdjustment for nonoperating portion - -
Increase (decrease) in accrued salaries and withholdings payable 1,637 3,911
Adjustment for nonoperating portion - -
Increase (decrease) in contracts payable - retained percentage - (2,290)
Adjustment for nonoperating portion - 2,290Adjustment for nonoperating portion 2,290
Increase (decrease) in due to other governmental units 7,490 6,152
Increase (decrease) in compensated absences payable 17,118 2,379
Total adjustments 260,760 (274,817)
Net cash flows provided by (used in) operating activities $882,180 $266,756
Noncash capital and related financing activities:
Capital assets purchased/constructed on account $ - $2,290
143
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144
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.
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 51
COMBINING STATEMENT OF NET ASSETS
December 31, 2011
Central
Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Assets
Current assets:
Cash and cash equivalents $632,227$620,542$897,571$907,116$3,057,456
Interest receivable 1,5001,8002,300 - 5,600
Prepayments - - 46,809 - 46,809
Accounts receivable 196 - 2,797 - 2,993
Inventory - at cost 58,573 - - - 58,573
Total current assets 692,496622,342949,477907,1163,171,431
Noncurrent assets:
Capital assets:
Land 15,779 - - - 15,779
Buildings 1,780,253 - - - 1,780,253
Equipment 198,911182,705 - - 381,616
Construction in progress 61,935 - - - 61,935
Total capital assets 2,056,878182,705 0 02,239,583
Less: accumulated depreciation (735,065)(134,043) - - (869,108)
Net capital assets 1,321,81348,662 0 01,370,475
Total noncurrent assets 1,321,81348,662 0 01,370,475
Total assets 2,014,309 671,004 949,477 907,116 4,541,906
Liabilities
Current liabilities:
Accounts payable 120,8864,0332,000 - 126,919
Contracts payable 14,431 - - - 14,431
Accrued salaries and withholdings payable 3,6567,762 - - 11,418
Deferred revenue 7,233 - - - 7,233
Compensated absences payable - current 4,2171,351 - 107,713113,281
Total current liabilities 150,423 13,146 2,000 107,713 273,282
Noncurrent liabilities:
Compensated absences payable - noncurrent31,94410,231 - 800,816842,991
Total liabilities 182,367 23,377 2,000 908,529 1,116,273
Net Assets
Invested in capital assets, net of related debt - - - - -
Unrestricted 1,831,942647,627947,477(1,413)3,425,633
Total net assets $1,831,942$647,627$947,477($1,413)$3,425,633
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2011
Central
Garage
Information
SystemsInsurance
Compensated
Absences
Interfund
Eliminations
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments$174,719$ - $483,758$ - $ - $658,477
Use of space283,188 - - - - 283,188
Recovery of damages - - 34,928 - - 34,928
Charges for sales:
Sales of motor fuel174,493 - - - - 174,493
Total operating revenues632,400 0 518,686 0 0 1,151,086
Operating expenses:
Cost of services and space511,753344,347390,89589,146 - 1,336,141
Depreciation51,60720,545 - - - 72,152
Total operating expenses563,360 364,892 390,895 89,146 0 1,408,293
Net income (loss) from operations69,040(364,892)127,791(89,146)0(257,207)
Nonoperating revenues:
Investment income14,20017,40022,500 - - 54,100
Miscellaneous expense - - (1,300) - - (1,300)
Total nonoperating revenues14,200 17,400 21,200 0 0 52,800
Net income (loss) before transfers83,240 (347,492)148,991 (89,146)0(204,407)
Capital contributions - - - - - -
Transfers in188,272320,000 - - (35,000)473,272
Transfers out(36,500) - (16,343) - 35,000(17,843)
Total transfers and
capital contributions151,772 320,000 (16,343)0 0 455,429
Change in net assets235,012 (27,492)132,648 (89,146)0251,022
Net assets - January 11,596,930675,119814,82987,733 - 3,174,611
Net assets - December 31$1,831,942 $647,627 $947,477 ($1,413)$0 $3,425,633
147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 53
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2011
Central Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from interfund goods and services provided $632,204$ - $483,758$526,979$1,642,941
Cash received for damages - - 34,928 - 34,928
Cash paid to suppliers for goods and services (211,688)(100,894)(388,831) - (701,413)
Cash payments to employees for services (196,356)(238,266) - (547,371)(981,993)
Net cash flows provided by (used in) operating activities 224,160(339,160)129,855 (20,392)(5,537)
Cash flows from noncapital financing activities:
Intergovernmental - - - - -
Transfers in 192,272348,108 - - 540,380
Transfers out (40,500)(28,108)(16,343) - (84,951)
Net cash flows provided by (used in)
noncapital financing activities 151,772 320,000 (16,343)0 455,429
Cash flows from capital and related financing activities:
Acquisition of capital assets (256,195)(28,108) - - (284,303)
Net cash flows provided by (used in)
capital and related financing activities (256,195)(28,108)0 0 (284,303)
Cash flows from investing activities:
Investment income 14,300 18,300 22,500 - 55,100
Net cash flows provided by (used in) investing activities 14,300 18,300 22,500 0 55,100
Net increase (decrease) in cash and cash equivalents 134,037 (28,968)136,012 (20,392)220,689
Cash and cash equivalents - January 1 498,190649,510761,559927,5082,836,767
Cash and cash equivalents - December 31 $632,227 $620,542 $897,571 $907,116 $3,057,456
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss)$69,040($364,892)$127,791($89,146)($257,207)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous expense - - (1,300)(1,300)
Depreciation expense 51,607 20,545 - - 72,152
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (196) - (2,297) - (2,493)
(Increase) decrease in prepayments - - 3,661 - 3,661
(Increase) decrease in inventory, at cost (19,551) - - - (19,551)
Increase (decrease) in accounts payable 106,965 3,384 2,000 - 112,349
Increase (decrease) in accrued -
salaries and withholdings payable (151)3,557 - - 3,406
Increase (decrease) in deferred revenue 7,233 7,233
Increase (decrease) in compensated absences payable 9,213 (1,754) - 68,754 76,213
Total adjustments 155,120 25,732 2,064 68,754 251,670
Net cash flows provided by (used in) operating activities $224,160($339,160)$129,855($20,392)($5,537)
Noncash capital and related financing activities:
Contribution of capital assets from government $ - $ - $ - $ - $ -
148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 54
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals For December 31, 2010
Capital
Equipment
OperatingReplacement Totals
AccountAccount2011 2010
Assets
Current assets:
Cash and cash equivalents $600,591$31,636$632,227$498,190
Interest receivable 1,400 100 1,500 1,600
Accounts receivable 196 - 196 -
Inventory - at cost 58,573 - 58,57339,022
Total current assets 660,76031,736692,496538,812
Noncurrent assets:
Capital assets:
Land 15,779 - 15,77915,779
Buildings 1,780,253 - 1,780,2531,585,993
Equipment 198,911 - 198,911198,911
Construction in progress 61,935 - 61,935 -
Total capital assets 2,056,878 02,056,8781,800,683
Less: Accumulated depreciation (735,065) - (735,065)(634,218)
Net capital assets 1,321,813 01,321,8131,117,225
Total noncurrent assets 1,321,813 01,321,8131,117,225
Total assets 1,982,57331,7362,014,3091,656,037
Liabilities
Current liabilities:
Accounts payable 120,886 - 120,88628,352
Contracts payable 14,431 - 14,431 -
Accrued salaries and withholdings payable 3,656 - 3,656 3,807
Deferred revenue 7,233 - 7,233 -
Compensated absences payable - current 4,217 - 4,217 3,549
Total current liabilities 150,423 0 150,423 35,708
Noncurrent liabilities:
Compensated absences payable - noncurrent 31,944 - 31,94423,399
Total liabilities 182,367 0 182,367 59,107
Net Assets
Invested in capital assets, net of related debt - - - 1,117,225
Unrestricted 1,800,20631,7361,831,942479,705
Total net assets $1,800,206$31,736$1,831,942$1,596,930
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 55
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
Capital
Equipment
OperatingReplacementIntrafundTotals
AccountAccountEliminations20112010
Operating revenues:
Charges for services:
Services to departments $174,719$ - $ - $174,719$195,050
Use of space 283,188 - - 283,188265,694
Charges for sales:
Sales of motor fuel 174,493 - - 174,493161,534
Total operating revenues 632,400 0 0 632,400622,278
Operating expenses:
Cost of services and space 511,753 - - 511,753512,734
Depreciation 51,607 - - 51,60749,240
Total operating expenses 563,360 0 0 563,360561,974
Net income from operations 69,040 0 0 69,04060,304
Nonoperating revenues:
Investment income:
Interest and dividends 8,600 500 - 9,100 8,900
Change in fair value 4,800 300 - 5,100(2,100)
Intergovernmental - - - - -
Total nonoperating revenues 13,400 800 014,200 6,800
Net income before capital contributions and transfers 82,440 800 083,240 67,104
Capital contribution - capital asset - - - - -
Transfers in 188,272 4,000(4,000)188,27242,000
Transfers out (40,500) - 4,000(36,500)(61,250)
Total transfers 147,772 4,000 0 151,772 (19,250)
Change in net assets 230,212 4,800 0 235,012 47,854
Total net assets - January 1 1,569,99426,936 - 1,596,9301,549,076
Total net assets - December 31 $1,800,206 $31,736 $0 $1,831,942 $1,596,930
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 56
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from interfund goods & services provided $632,204 $622,278
Cash paid to suppliers for goods and services (211,688)(330,064)
Cash payments to employees for services (196,356)(190,315)
Net cash flows provided by (used in) operating activities 224,160 101,899
Cash flows from noncapital financing activities:
Intergovernmental - -
Transfers in 192,272 42,000
Transfers out (40,500)(61,250)
Net cash flows provided by (used in) noncapital financing activities:151,772 (19,250)
Cash flows from capital and related financing activities:
Acquisition of capital assets (256,195) -
Cash flows from investing activities:
Investment income 14,300 6,600
Net cash flows provided by (used in) investing activities 14,300 6,600
Net increase (decrease) in cash and cash equivalents 134,037 89,249
Cash and cash equivalents - January 1 498,190 408,941
Cash and cash equivalents - December 31 $632,227 $498,190
Reconciliation of operating income to net cash flows from operating activities:
Operating income $69,040 $60,304
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 51,607 49,240
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (196) -
(Increase) decrease in inventory, at cost (19,551)(2,226)
Increase (decrease) in accounts payable 106,965 (10,264)
Increase (decrease) in accrued salaries and withholdings payable (151)1,053
Increase (decrease) in compensated absences payable 9,213 3,792
Increase (decrease) in deferred revenue 7,233 -
Total adjustments 155,120 41,595
Net cash flows provided by (used in) operating activities $224,160 $101,899
Noncash capital and related financing activities:
Contribution of capital assets from government $0 $15,779
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals For December 31, 2010
Capital
Equipment
Operating Replacement Totals
AccountAccount 2011 2010
Assets
Current assets:
Cash and cash equivalents $145,288$475,254$620,542$649,510
Interest receivable 300 1,500 1,800 2,700
Total current assets 145,588476,754622,342652,210
Noncurrent assets:
Capital assets:
Equipment 182,705 - 182,705154,597
Less: accumulated depreciation (134,043) - (134,043)(113,498)
Net capital assets 48,662 - 48,662 41,099
Total noncurrent assets 48,662 0 48,662 41,099
Total assets 194,250476,754671,004693,309
Liabilities
Current liabilities:
Accounts payable 4,033 - 4,033 649
Accrued salaries and withholdings payable 7,762 - 7,762 4,205
Compensated absences payable - current 1,351 - 1,351 1,756
Total current liabilities 13,146 0 13,146 6,610
Noncurrent liabilities:
Compensated absences payable - noncurrent 10,231 - 10,231 11,580
Total liabilities 23,377 0 23,377 18,190
Net Assets
Invested in capital assets, net of related debt - - - 41,099
Unrestricted 126,135521,492647,627634,020
Total net assets $126,135 $521,492 $647,627 $675,119
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
Capital
Equipment
OperatingReplacementIntrafund Totals
AccountAccountEliminations2011 2010
Operating revenues $ - $ - $ - $ - $ -
Operating expenses:
Cost of services 344,347 - - 344,347288,649
Depreciation20,545 - - 20,54521,320
Total operating expenses 364,892 0 0364,892309,969
Net income (loss) from operations (364,892)0 0(364,892)(309,969)
Nonoperating revenues:
Investment income 2,80014,600 - 17,40011,300
Total nonoperating revenues 2,80014,600 017,40011,300
Net income (loss) before transfers (362,092)14,600 0 (347,492)(298,669)
Transfers in 348,108 - (28,108)320,000223,790
Transfers out - (28,108)28,108 - -
Total transfers 348,108(28,108)0320,000223,790
Change in net assets (13,984)(13,508)0 (27,492)(74,879)
Net assets - January 1 140,119535,000 - 675,119749,998
Net assets - December 31 $126,135 $521,492 $0 $647,627 $675,119
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 59
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash paid to suppliers for goods and services ($100,894)($73,578)
Cash payments to employees for services (238,266)(218,080)
Net cash flows provided by (used in) operating activities (339,160)(291,658)
Cash flows from noncapital financing activities:
Transfers in 348,108 223,790
Transfers out (28,108) -
Net cash flows from noncapital financing activites 320,000 223,790
Cash flows from capital and related financing activities:
Acquisition of capital assets (28,108) -
Cash flows from investing activities:
Investment income 18,300 11,200
Net cash flows provided by (used in) investing activities 18,300 11,200
Net increase in cash and cash equivalents (28,968)(56,668)
Cash and cash equivalents - January 1 649,510 706,178
Cash and cash equivalents - December 31 $620,542 $649,510
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($364,892)($309,969)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 20,545 21,320
Changes in assets and liabilities:
Increase (decrease) in accounts payable 3,384 (7,890)
Increase (decrease) in accrued salaries and withholdings payable 3,557 1,331
Increase (decrease) in compensated absences payable (1,754)3,550
Total adjustments 25,732 18,311
Net cash flows provided by (used in) operating activities ($339,160)($291,658)
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 60
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals For December 31, 2010
20112010
Assets
Current assets:
Cash and cash equivalents$897,571$761,559
Interest receivable 2,3002,800
Accounts receivable2,797 -
Prepayments 46,809 50,470
Total assets 949,477 814,829
Liabilities
Current liabilities:
Accounts payable 2,000 -
Total liabilities 2,000 0
Net Assets
Unrestricted 947,477 814,829
Total net assets $947,477 $814,829
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 61
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Operating revenues:
Insurance allocation$483,758$485,964
Recovery of damages34,92812,989
Total operating revenues 518,686 498,953
Operating expenses:
Cost of services:
Premiums 373,047 432,376
Claims 17,848 15,070
Total operating expenses 390,895 447,446
Net income (loss) from operations 127,791 51,507
Nonoperating revenues:
Investment income 22,500 11,500
Miscellaneous expense (1,300) -
Total nonoperating revenues 21,200 11,500
Net income before transfers 148,991 63,007
Transfers out (16,343) -
Change in net assets 132,648 63,007
Net assets - January 1 814,829 751,822
Net assets - December 31 $947,477 $814,829
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 62
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from interfund services provided$483,758$485,964
Cash received for damages34,92812,989
Cash paid to suppliers for goods and services(388,831)(445,482)
Net cash flows provided by (used in) operating activities129,855 53,471
Cash flows from noncapital financing activities:
Transfers out (16,343) -
Cash flows from investing activities:
Investment income 22,500 11,100
Net cash flows provided by (used in) investing activities 22,500 11,100
Net increase in cash and cash equivalents 136,012 64,571
Cash and cash equivalents - January 1 761,559 696,988
Cash and cash equivalents - December 31 $897,571 $761,559
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$127,791 $51,507
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous expense (1,300) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (2,297) -
(Increase) decrease in prepayments 3,661 5,370
Increase (decrease) in accounts payable 2,000 (3,406)
Total adjustments 2,064 1,964
Net cash flows provided by (used in) operating activities $129,855 $53,471
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 63
SUBCOMBINING SCHEDULE OF NET ASSETS
December 31, 2011
With Comparative Totals For December 31, 2010
20112010
Assets
Current assets:
Cash and cash equivalents $907,116 $927,508
Interest receivable - -
Total assets 907,116 927,508
Liabilities
Current liabilities:
Compensated absences payable - current 107,713 110,598
Noncurrent liabilities:
Compensated absences payable - noncurrent 800,816 729,177
Total liabilities 908,529 839,775
Net Assets
Unrestricted (1,413)87,733
Total net assets ($1,413)$87,733
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 64
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET ASSETS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Operating revenues:
Charges for services $ - $ -
Operating expenses:
Personal services 89,146 -
Net income (loss) from operations (89,146)0
Nonoperating revenues:
Investment income - -
Change in net assets (89,146)0
Net assets - January 1 87,733 87,733
Net assets - December 31 ($1,413)$87,733
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 65
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2011
With Comparative Totals For The Year Ended December 31, 2010
20112010
Cash flows from operating activities:
Cash received from interfund services provided $526,979 $681,942
Cash payments to employees for services (547,371)(582,647)
Net cash flows provided by (used in) operating activities (20,392)99,295
Cash flows from investing activities:
Investment income - -
Net cash flows provided by (used in) investing activities 0 0
Net increase in cash and cash equivalents (20,392)99,295
Cash and cash equivalents - January 1 927,508 828,213
Cash and cash equivalents - December 31 $907,116 $927,508
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($89,146)$ -
Adjustments to reconcile operating income (loss) to net
cashflowsfromoperatingactivities:cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease) in compensated absences payable 68,754 99,295
Total adjustments 68,754 99,295
Net cash flows provided by (used in) operating activities ($20,392)$99,295
160
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 building permit surcharges collected for and
remitted to the State of Minnesota, and sewer availability charges (SAC) collected for and
remitted to the Metropolitan Council.
Tri-City GIS Fund – used to account for joint purchases of geographic information services by
the Cities of Columbia Heights, Fridley and Andover.
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 66
AGENCY FUNDS
For The Year Ended December 31, 2011
Balance Balance
January 1,December 31,
2011 AdditionsDeletions 2011
Permit Surcharge Fund
Assets:
Cash and investments $2,028$29,454($29,664)$1,818
Total assets $2,028$29,454($29,664)$1,818
Liabilities:
Due to other governmental units $2,028$29,454($29,664)$1,818
Total liabilities $2,028$29,454($29,664)$1,818
Tri-City GIS Fund
Assets:
Cash and investments $4,686$71,640($74,970)$1,356
Due from other governmental units 196 63,296 (56,744)6,748
Total assets $4,882$71,640($74,970)$8,104
Liabilities:
Accounts payable $4,757$78,317($74,970)$8,104
Due to other governmental units 125 - (125) -
Total liabilities $4,882$78,317($75,095)$8,104
Total
Assets:
Cash and investments $6,714$101,094($104,634)$3,174
Due from other governmental units 196 63,296 (56,744)6,748
Total assets $6,910$164,390($161,378)$9,922
Liabilities:
Accounts payable $4,757$78,317($74,970)$8,104
Due to other governmental units 2,153 29,454 (29,789)1,818
Total liabilities $6,910$107,771($104,759)$9,922
162
III. STATISTICAL SECTION (UNAUDITED)
163
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164
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.
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET ASSETS BY COMPONENT
Last Ten Fiscal Years
(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
Restricted175,783290,175337,389
Unrestricted7,658,6237,325,2286,918,745
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
166
Table 1
2005200620072008200920102011
$16,727,724$18,043,277$18,859,030$23,497,922$24,163,911$26,279,178$28,095,261
2,302,0562,224,3842,228,4542,316,9592,458,7432,034,0303,213,455
18,650,98123,028,97422,985,52321,011,46522,423,35123,142,53421,119,179
$37,680,761$43,296,635$44,073,007$46,826,346$49,046,005$51,455,742$52,427,895
$6,732,499$5,759,805$6,039,739$7,142,278$7,459,474$8,044,184$9,331,167
375,652455,227775,036745,601648,435438,275381,465
6,506,2017,299,5746,478,3835,855,4956,014,1406,725,3835,918,147
$13,614,352$13,514,606$13,293,158$13,743,374$14,122,049$15,207,842$15,630,779
$23,460,223$23,803,082$24,898,769$30,640,200$31,623,385$34,323,362$37,426,428
2,677,7082,679,6113,003,4903,062,5603,107,1782,472,3053,594,920
25,157,18230,328,54829,463,90626,866,96028,437,49129,867,91727,037,326
$51,295,113$56,811,241$57,366,165$60,569,720$63,168,054$66,663,584$68,058,674
Fiscal Year
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
Last Ten Fiscal Years
(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:
General government - - -
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
168
Table 2
Page 1 of 2
2005 2006 2007 2008 2009 2010 2011
$1,681,229$1,689,675$1,732,111$1,835,453$1,761,334$2,013,750$2,039,680
4,052,9053,992,9304,380,3634,599,6694,591,9775,473,2245,549,678
2,391,7262,353,0322,506,9132,906,9502,794,1892,777,9662,654,047
2,017,8162,135,6332,313,7502,283,8812,182,8562,479,5192,576,409
5,360,4422,579,0845,918,2574,476,4752,385,4052,295,5741,630,350
288,532118,760496,688721,006961,392959,320909,858
15,792,65012,869,11417,348,08216,823,43414,677,15315,999,35315,360,022
1,717,4452,026,6032,113,1212,149,9761,927,8112,000,1012,370,076
1,333,4201,393,6791,675,7381,571,4871,737,1341,478,5181,710,381
1,147,3131,147,8791,170,7071,185,2981,290,5281,426,4861,561,659
162,915184,764204,221216,362376,884272,355298,577
6,544,1756,377,8056,539,3577,470,3237,701,9617,910,9518,155,888
10,905,26811,130,73011,703,14412,593,44613,034,31813,088,41114,096,581
$26,697,918$23,999,844$29,051,226$29,416,880$27,711,471$29,087,764$29,456,603
Fiscal Year
$228,740$171,146$177,378$173,485$169,850$192,005$189,641
423,450528,752670,017616,107637,653715,205697,656
81,607267,960130,35167,22634,14944,21148,303
250,380263,565297,341262,562256,969269,825159,829
2,748,5421,461,4971,504,6791,562,3451,019,1911,114,848962,276
79 2,769 - 2,560 1,505 - -
557,983355,356389,325433,732434,402559,482563,914
178,311161,176154,309154,049161,401166,468176,578
76,40579,37147,784239,865102,51793,47476,864
144,121160,017159,624185,506211,400241,919112,895
- - - - - 194,84238,399
599,91752,463103,97457,70019,52016,02611,303
46,0523,896,8621,448,1801,596,3481,683,0242,848,1791,314,547
1,702,543141,73871,51642,588 1,50015,724 -
- 682,8721,311,5252,974,449199,505541,826175,467
7,038,1308,225,5446,466,0038,368,5224,932,5867,014,0344,527,672
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET ASSETS
Last Ten Fiscal Years
(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 sewer130,339 - 113,407
Total business-type activities program revenues11,102,22311,291,13611,465,717
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
170
Table 2
Page 2 of 2
2005 2006 2007 2008 2009 2010 2011
$1,887,990$2,141,648$2,273,980$2,414,316$2,471,257$2,503,506$2,530,803
1,145,8101,374,2171,419,2521,440,1651,465,4961,594,3221,523,852
1,256,1801,263,2671,303,4721,341,0141,383,9791,542,3121,682,178
274,907270,467290,419314,238370,590345,086350,618
6,714,5756,546,9796,722,6227,490,9427,962,8848,158,2598,494,962
- - - 1,718 - - -
46,17047,75536,06050,57250,10536,65366,163
- - - - - - -
- 22,822 - - - - -
- - - 54,774 - - -
- - - - - - -
11,325,63211,667,15512,045,80513,107,73913,704,31114,180,13814,648,576
$18,363,762$19,892,699$18,511,808$21,476,261$18,636,897$21,194,172$19,176,248
($8,754,520)($4,643,570)($10,882,079)($8,454,912)($9,744,567)($8,985,319)($10,832,350)
Fiscal Year
420,364536,425342,661514,293669,9931,091,727551,995
(8,334,156)(4,107,145)(10,539,418)(7,940,619)(9,074,574)(7,893,592)(10,280,355)
5,662,3685,953,7226,321,4676,762,1298,046,3188,825,5029,069,092
1,088,2671,086,2981,183,0621,557,8911,244,684812,965558,861
1,768,2161,679,3841,844,5161,516,4121,731,1851,176,9341,278,195
471,142706,2311,379,7261,050,827475,345487,612598,880
18,98015,93044,00040,87782,704 - 34,485
445,249957,879456,537280,115383,99092,044264,990
9,454,22210,399,44411,229,30811,208,25111,964,22611,395,05711,804,503
118,413181,708321,571216,03892,67286,110135,932
(445,249)(957,879)(456,537)(280,115)(383,990)(92,044)(264,990)
(326,836)(776,171)(134,966)(64,077)(291,318)(5,934)(129,058)
$9,127,386$9,623,273$11,094,342$11,144,174$11,672,908$11,389,123$11,675,445
$699,702$5,755,874$347,229$2,753,339$2,219,659$2,409,738$972,153
93,528(239,746)207,695450,216378,6751,085,793422,937
$793,230$5,516,128$554,924$3,203,555$2,598,334$3,495,531$1,395,090
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2002 2003 2004
General fund:
Reserved $14,657$14,727 $23,302
Unreserved 3,500,9493,408,5054,116,808
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total general fund $3,515,606$3,423,232$4,140,110
All other governmental funds:
Reserved $950,813$976,139$5,273,705
Unreserved, reported in:
Special revenue funds 355,626610,804(652,449)
Debt service funds 1,187,646841,6661,044,647
Capital projects funds 11,938,61113,633,28412,367,589
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total all other governmental funds $14,432,696$16,061,893$18,033,492
Fiscal Year
172
Table 3
2005200620072008200920102011
$10,484$35,323$35,710$12,159$71,898$77,204$ -
3,339,6443,560,5253,943,4363,743,7984,724,2535,265,035 -
- - - - - - 80,767
- - - - - - -
- - - - - - 132,595
- - - - - - -
- - - - - - 5,655,693
$3,350,128$3,595,848$3,979,146$3,755,957$4,796,151$5,342,239$5,869,055
$2,187,884$2,668,322$2,382,354$968,602$1,643,915$1,550,071$ -
(612,434)(506,084)411,0901,868,3402,332,6103,190,618 -
621,250809,0621,745,4473,242,4713,177,5863,713,774 -
12,784,74415,034,96815,918,04820,233,69013,173,07411,642,407 -
- - - - - - 2,353,164
- - - - - - 3,442,391
- - - - - - 12,774,440
- - - - - - -
- - - - - - (2,782)
$14,981,444$18,006,268$20,456,939$26,313,103$20,327,185$20,096,870$18,567,213
Fiscal Year
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2002 2003 2004
Revenues:
Taxes $5,143,733$5,076,498$5,937,431
Special assessments 597,380 564,351671,357
Licenses and permits277,924281,480586,957
Intergovernmental 7,996,9923,844,9884,687,866
Charges for services1,166,8761,125,4311,442,438
Fines and forfeitures84,346140,378140,282
Investment earnings1,201,447392,995695,275
Other revenues327,771435,829176,575
Total revenues16,796,469 11,861,950 14,338,181
Expenditures:
Current:
General government1,876,9961,663,8011,576,233
Public safety3,829,1783,590,5253,615,200
Public works1,162,9961,208,0551,311,390
Culture and recreation1,897,6901,862,7771,872,178
Community development1,545,4051,622,4681,576,161
Capital outlay:
General government20,77816,037 -
Public safety124,648348,221476,511
Public works5,296,2011,273,7471,637,559
Culture and recreation26,61071,70083,955
Community development257,42555,824682,939
Debt service:
Principal retirement716,515477,918514,789
Interest and fiscal charges561,222602,592652,518
Issuance costs - 10,33029,918
Developer incentives104,25885,21167,866
Total expenditures14,148,923 12,889,206 14,097,217
Revenues over (under) expenditures2,647,546 (1,027,256)240,964
Fiscal Year
174
Table 4
Page 1 of 2
2005 2006 2007 2008 2009 2010 2011
$6,702,610$6,977,604$7,444,199$8,263,763$9,218,038$9,631,635$9,683,433
520,0311,011,5531,137,5762,505,523879,0921,020,334729,327
382,339597,557444,833423,465435,618479,148378,357
4,878,4874,228,3084,229,4143,734,8263,777,3554,936,4432,820,419
3,197,3601,887,3141,995,8591,665,6041,513,6671,650,7721,652,655
127,555129,400160,383142,283139,955188,693170,089
432,959648,7441,271,216984,846456,145469,312562,180
90,956251,414170,344296,815102,901273,446 70,173
16,332,297 15,731,894 16,853,824 18,017,125 16,522,771 18,649,783 16,066,633
1,575,8631,577,4841,616,3741,706,2441,646,9741,926,9821,880,257
3,954,0193,887,8844,122,4114,345,7164,418,4364,968,4335,037,548
1,558,9871,523,1701,640,7131,955,2501,736,9991,731,7001,509,527
1,977,7982,074,8352,238,7932,202,6802,003,6352,194,8532,306,693
4,511,3382,256,1223,077,3104,077,5762,115,6281,351,3681,321,431
11,022 4,512 - 5,453 45,708 - 144,029
95,125 82,986254,7283,499,7138,997,400237,272 95,281
1,912,7384,202,6651,303,2971,084,959951,2402,925,1741,882,787
62,700117,909274,8963,269,9862,256,958194,380140,867
1,436,724266,144306,332287,620139,1181,202,998 40,549
1,449,035782,273792,2731,029,836783,974765,7361,659,022
2,478,205119,544219,065384,293835,167981,281935,405
- 25,114148,972155,397 56,189 - 181,638
252,176142,4512,584,854 71,341125,857141,005
21,275,730 17,063,093 18,580,018 24,076,064 26,113,283 18,621,182 17,135,034
(4,943,433)(1,331,199)(1,726,194)(6,058,939)(9,590,512)28,601 (1,068,401)
Fiscal Year
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2002 2003 2004
Other financing sources (uses):
Bonds issued $ - $1,332,828$1,985,000
Bond premium (discount) - (5,998)(5,935)
Transfers in 6,857,8033,849,932838,937
Transfers out (5,751,430)(2,880,382)(370,489)
Sale of capital assets - 267,699 -
Total other financing sources (uses)1,106,373 2,564,079 2,447,513
Net change in fund balance $3,753,919$1,536,823$2,688,477
Expenditures capitalized for governmental
activities reporting purposes 5,280,4071,273,9382,355,420
Debt service as a percentage
of noncapital expenditures (A)14.4%9.3%9.9%
Debt service as a percentage
of total expenditures (A)9.0%8.4%8.3%
(A) For the purpose of the debt service ratios presented in this table, only the principal and interest components of
the debt service expenditures reported in this table are used, and noncapital expenditures are determined
by subtracting expenditures capitalized for governmental activities reporting purposes from the total
governmental funds expenditures reported in the table.
Fiscal Year
176
Table 4
Page 2 of 2
2005 2006 2007 2008 2009 2010 2011
$ - $2,759,550$3,890,000$10,975,000$4,190,000$ - $ -
- 26,303(22,108) - - - -
553,0701,807,877570,374377,615458,231407,272326,583
(80,321)(70,000)(70,000)(88,941)(99,224)(120,100)(302,022)
628,654 78,013191,897428,240 95,781 - 40,999
1,101,403 4,601,743 4,560,163 11,691,914 4,644,788 287,172 65,560
($3,842,030)$3,270,544$2,833,969$5,632,975($4,945,724)$315,773($1,002,841)
3,518,3094,592,7871,896,3637,909,56112,364,5113,637,5592,303,513
22.1%7.2%6.1%8.7%11.8%11.7%17.5%
18.5%5.3%5.4%5.9%6.2%9.4%15.1%
Fiscal Year
177
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 Tax Market as a Percent
YearResidential Property (A)Increment Value SubtotalContribution Distribution Value ( C)Rate (D)Valueof EMV
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%
201011,997,2972,401,197(803,298)13,595,196(624,231)3,579,41616,550,38156.881%1,303,072,9001.270%
201110,890,6312,218,809(568,719)12,540,721(796,058)3,811,85615,556,51961.804%1,180,235,3001.318%
(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
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
Note (E)
178
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
2002 49.114%(D)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%
2010 56.881%24.547%32.696%9.185%123.309%
2011 61.804%18.842%37.235%9.605%127.486%
(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 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)
179
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180
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Ten 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 $212,3581 1.62%$174,5021 1.97%
Centro Bradley SPE 5 LLC 137,9862 1.05%N/AN/A N/A
Stadium Village Properties LLC 109,3143 0.83%N/AN/A N/A
Consolidated Realty of Mpls 101,5944 0.77%98,9233 1.12%
Columbia Park Properties 99,2345 0.76%76,5526 0.87%
Crestview Corporation 99,1906 0.76%65,1878 0.74%
Columbia Heights Center LLC 78,4187 0.60%80,9305 0.91%
Lynde Investment Co MN Partnership 71,6258 0.55%57,4669 0.65%
Jeff's Bobby & Steve's Auto World 70,5729 0.54%49,36610 0.56%
Northern States Power 57,68810 0.44%49,07211 0.55%
New Heights Development LLC 56,59711 0.43%N/AN/A N/A
Maylan Construction Company N/AN/A N/A86,8484 0.98%
Lake State Properties N/AN/A N/A76,2787 0.86%
Bradley Operating LP N/AN/A N/A141,7282 1.60%
Total $1,094,576 8.35%$1,417,010 10.81%
Total All Property $13,109,440 $8,847,773
(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.
20022011
181
CITY OFCOLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
County
FiscalGrossAdjustmentsAdjusted
YearTax Levy (A)to Levy (B) Tax Levy
20024,824,13010,8684,834,998
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
2010 9,075,425 (302)9,075,123
2011 9,426,760 (141)9,426,619
(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. 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 2002-2010, this is the "Market Value Homested Credit." For years 2011 and after this is "Market Value
Exclusion." 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.
182
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
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%53,643 5,402,70299.13%
568,479 5,412,17898.00%85,072 6,065,72999.39%
517,322 5,672,90997.52%126,403 6,316,63499.52%
471,660 5,842,54097.14%154,090 6,468,29099.51%
451,019 6,400,60497.25%144,023 6,995,64699.30%
447,755 7,021,60596.98%155,094 7,624,45498.99%
535,625 8,279,06597.13%137,317 8,814,69097.13%
608,241 8,578,78497.46%N/A9,187,02597.46%
183
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
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 13,940,000 580,000 4,614,486 2,881,00022,015,486
2010 13,855,000 580,000 3,976,750 2,838,00021,249,750
2011 12,698,431 580,000 3,522,299 2,790,00019,590,730
(A) Based on population and income data in Table 14. Certain information from prior years' presentations
have been restated in this table to conform to the current presentation.
184
Table 9
Business-Type Activities All Activities
General Liquor
Obligation Facility
Bonds With Lease Total Percentage
Pledged UtilityRevenueBusiness-Type Total of Personal Per
Revenues Bonds Activities All Debt Income (A)Capita (A)
1,650,000 - 1,650,000 4,363,206 1.1%233
$2,737,172 - 2,737,172 6,305,288 1.6%337
2,486,377 - 2,486,377 7,524,704 1.9%405
2,220,708 - 2,220,708 5,810,000 1.3%318
3,248,431 - 3,248,431 8,815,000 2.0%482
2,950,704 5,040,000 7,990,70416,655,000 3.8%919
2,590,540 5,040,000 7,630,54026,240,000 6.0%1,447
2,540,512 5,040,000 7,580,51229,595,998 6.7%1,612
2,128,248 4,900,000 7,028,24828,277,998 6.0%1,450
1,304,270 4,750,000 6,054,27025,645,000 5.4%1,315
185
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
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 13,940,000 580,00014,520,0001.02%4,614,486
2010 13,855,000 580,00014,435,0001.11%3,976,750
2011 12,698,431 580,00013,278,4311.02%3,522,299
(A) Based on population and income data in Table 14. Certain information from prior years' presentations
have been restated in this table to conform to the current presentation.
(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.
186
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)
1,650,000 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 0.9%$5,810,000 318
3,248,431 7,430,000 1.7%$8,815,000 482
2,950,704 6,950,000 1.6%$8,725,000 481
2,590,540 7,160,000 1.6%$18,310,000 1,010
2,540,512 7,154,998 1.6%$21,674,998 1,180
2,128,248 6,104,998 1.3%$20,539,998 1,054
1,304,270 4,826,569 1.0%$18,105,000 929
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2011
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit (A)OutstandingApplicable (B)Debt
Debt repaid with property taxes:
Anoka County $165,392,433 4.8374%$8,000,744
Anoka County Railroad Authority 30,155,000 4.8477%1,461,820
Independent School District 13 23,810,000 71.5625%17,039,043
Metropolitan Council 1,293,495,536 0.4696%6,074,350
Subtotal - overlapping debt 32,575,957
City direct debt - governmental activities 21,249,750
Total direct and overlapping debt $53,825,707
(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
188
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2011
Taxable market value of property $1,175,949,800
Debt limitation percentage (A)3%
Debt limit 35,278,494
Net debt applicable to limit (B)12,698,431
Legal debt margin $22,580,063
Legal debt margin as a percentage of limit 64.01%
Legal Debt Margin Calculation for Fiscal Years 2001 Through 2010
Legal Debt
Net Debt Legal Margin as a
Fiscal Debt Applicable to Debt Percentage
Year Limit Limit Margin of Debt Limit
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%
2009 42,618,129 13,940,000 28,678,129 67.29%
2010 38,979,705 13,855,000 25,124,705 64.46%
(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.
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT Table 13
Last Ten Fiscal Years
2002 - 20072008200920102011
Economic Development Authority
Tax Increment Revenue Bonds Series 2007:
Tax increment revenue from applicable parcels$ - $243,159$267,142$241,854$211,533
Intergovernmental:
Market Value TIF credit - 14,00219,55428,11834,351
Net available revenue$0$257,161$286,696$269,972$245,884
Debt service:
Principal - - 9,00043,00048,000
Interest - 158,325152,363151,063148,788
Total debt service$0$158,325$161,363$194,063$196,788
CoverageN/A162%178%139%125%
Economic Development Authority
Lease Revenue Bonds Series 2007B:
Annual appropriation of liquor net revenues$ - $210,264$497,200$364,000$390,000
Investment income - 8,638 711,1051,500
Issuance costs and administration (expense) - (10,062)(6,866)(10,393)(9,598)
Net available revenue $0$208,840$490,405$354,712$381,902
Debt service:
Principal $ - $ - $ - $140,000$150,000
Interest - 208,264240,305237,155230,630
Total debt service $0$208,264$240,305$377,155$380,630
Coverage N/A100%204%94%100%
Note: Details regarding the City's outstanding debt can be found in Note 6 of the financial statements.
Fiscal Year
190
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
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 18,261 442,135,332 24,212 3.80%
2006 18,288 442,789,056 24,212 3.90%
2007 18,124 438,818,288 24,212 4.60%
2008 18,137 439,133,044 24,212 5.50%
2009 18,361 444,556,532 24,212 8.50%
2010 19,496 472,037,152 24,212 7.50%
2011 19,496 485,450,400 24,900 6.70%
Sources are as follows:
Population: Data for the years 2002, 2004-2009 provided by the Metropolitan Council. Data for the year
2003 & 2011 were estimated as equal to next available prior year. Data for 2010 is from the 2010 US Census.
Per Capita Income: Data for 2002-2004 estimated as equal to per capita income reported in the 2000 U.S. Census.
Data for 2005-2010 provided by the US Census Bureau, 2005-2009 American Community Survey.
Certain information from prior years' presentations have been restated in this table to conform
to the current presentation.
Unemployment Rate: Provided by MN Department of Employment and Economic Development for Anoka County.
Rates are not compiled for inidividual communities within counties.
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192
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
Medtronic Inc 600 10.33%5321 0.30%
Independent School District 13 475 20.26%4152 0.23%
City of Columbia Heights 207 30.12%1754 0.10%
Crestview Lutheran Home 180 40.10%2263 0.13%
Rainbow Foods 120 50.07%1205 0.07%
Columbia Park Clinic 120 60.07%707 0.04%
Unique Thrift Store 75 70.04%N/AN/A N/A
Invest Cast Inc 70 80.04%549 0.03%
La Casita Mexican Restaurant 60 90.03%N/AN/A N/A
Bobby & Steve's Auto World 53100.03%N/AN/A N/A
US Post Office N/AN/A N/A4510 0.03%
NEI College of Technology N/AN/A N/A766 0.04%
SIS Enterprises N/AN/A N/A608 0.03%
Total 1,960 1.09%1,773 0.99%
(A) Employment data is not compiled for individual cities within Minnesota counties.
Sources:
The employee count for the City of Columbia Heights is from Table 16. 2011 data for other employers was
compiled from Salesgenie business database at May 2011.
20022011
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program 2002 2003 2004
General government
Mayor/council 5 5 5
Administration 7 5 5
Finance 13 13 12
Public safety:
Police 35 31 30
Fire 34 40 39
Public works 20 17 18
Culture and recreation:
Library 19 19 19
Parks 5 5 5
Recreation 13 13 13
Community development 7 7 6
Water 4 4 4
Sewer 4 4 4
Refuse - - -
Storm sewer - - -
Liquor 28 35 37
Total 194 198 197
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,
194
Table 16
2005 2006 2007 2008 2009 2010 2011
5555555
544451011
12 12 13 13 14 13 14
30 31 31 34 35 36 35
35 36 33 29 31 30 32
16 17 16 17 18 17 16
21 22 22 25 21 19 21
5555555
15 16 16 17 14 13 16
7776655
4454444
4443333
- - - - - - -
- - - 1 1 1 1
37 37 42 38 40 41 39
196 200 203 201 202 202 207
Employees as of December 31,
195
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2002 2003 2004
General government:
Resolutions approved by City Council (A)70 57 87
Ordinances adopted by City Council 4 19 7
Public safety:
Police:
Part I crimes (B)992 1,056 1,229
Part II crimes (B)3,142 3,225 3,435
Fire:
Emergency medical calls (B)1,660 1,702 1,653
Fire calls (B)4,777 380 483
Inspections & Related Actions (B)3,562 4,616 2,077
Public works:
Street paving and patching (tons of asphalt)not avail 1,220 1,271
Street sweeping (tons of debris)990 640 1,064
Trees removed 175 143 261
Culture and recreation:
Library:
Items in collection 71,439 71,409 73,105
Circulation 119,082 116,917 116,533
Reference inquiries 14,383 18,427 14,670
Parks and recreation:
Athletics participants (C)3,015 2,558 2,139
Other programs, estimated attendance (D)9,000 9,000 9,000
Number of paid room rentals 223 132 134
Communitydevelopment:
Function/Program
Fiscal Year
Community development:
Number of business licenses issued 313 295 307
Number of building permits issued (E)1,216 1,176 1,159
Construction value of permits issued $8,362,360$11,056,530$50,322,414(F)
Water:
Consumption (thousands of gallons)566,169 579,322 538,358
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 30)544,190 556,900 526,010
Miles of line cleaned/rodded/root-sawed 7 17 28
Refuse:
Refuse (tons)8,241 7,670 8,348
Recycling (tons)1,915 1,873 1,783
Yardwaste (tons)824 809 862
Storm sewer:
No operating indicators available N/A N/A N/A
Liquor:
Number of units sold N/A N/A N/A
(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 744.
(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.
Certain information from prior years' presentations have been restated in this table to conform to the current presentation.
Sources: Various City departments.
196
Table 17
2005 2006 2007 2008 2009 2010 2011
92 234 198 247 170 115 159
20 14 12 26 12 12 15
1,280 1,167 1,246 1,098 882 768 756
3,496 3,184 3,144 2,966 1,275 1,683 1,576
1,873 1,806 1,888 2,093 1,694 1,664 1,722
581 387 445 385 660 846 764
2,379 3,709 4,603 6,955 3,724 5,720 6,073
409 710 1,910 1,415 1,033 1,054 869
658 637 648 420 581 638 712
296 188 357 175 121 180 180
68,226 70,354 71,594 72,420 69,702 72,055 71,303
115,598 119,593 125,222 126,271 120,705 131,885 125,051
17,225 15,106 13,715 13,793 17,771 14,352 16,601
1,988 1,654 1,537 1,510 1,602 1,500 4,299
9,000 9,000 8,000 8,000 8,000 8,000 8,000
164 191 185 190 210 160 177
Fiscal Year
327 342 306 363 379 393 334
1,304 1,701 1,313 1,113 1,187 1,351 1,290
$13,041,878$26,798,827$22,230,118$21,917,792$13,376,732$14,481,712$7,986,467
527,621 529,581 538,844 518,791 518,299 516,068 454,223
514,810 536,920 495,580 511,090 437,520 444,820 485,000
28 39 27 29 39 26 25
8,863 8,397 6,587 7,323 7,239 6,770 6,789
1,863 1,721 1,522 1,318 1,036 1,699 1,605
892 645 654 727 773 1,100 1,270
N/A N/A N/A N/A N/A N/A N/A
798,900 758,000 768,000 920,121 1,029,139 1,028,160 1,060,150
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Eleven Fiscal Years
Function/Program 2001 2002 2003 2004
General government:
City hall square footage 28,530 28,530 28,530 28,530
Public safety:
Police Stations 1 1 1 1
Fire Stations 1 1 1 1
Public Safety Bldg square footage Note A Note A Note A Note A
Public works:
Office and shop square footage 31,075 31,075 31,075 31,075
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
Library square footage 7,896 7,896 7,896 7,896
Parks 13 13 13 13
Playgrounds 11 11 11 11
Gymnasiums square footage - - - -
Mtg & banquet rooms 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:
Retail stores owned 1 1 1 1
Retail stores leased 2 2 2 2
(A)For years prior to 2010, the police and fire stations are included in the City Hall square footage reported above.
Beginning in 2010, the police and fire stations were in a separate public safety facility.
Sources: Various City departments.
Fiscal Year
198
Table 18
2005 2006 2007 2008 2009 2010 2011
28,530 28,530 28,530 28,530 28,530 28,530 28,530
1111111
1111111
Note ANote ANote ANote ANote A47,088 47,088
31,075 31,075 31,075 31,075 31,075 31,075 31,075
3333333
6666666
62 62 62 62 62 62 62
19 19 19 19 19 19 19
1111111
7,896 7,896 7,896 7,896 7,896 7,896 7,896
13 13 13 13 13 13 13
11 11 11 11 11 11 11
- - - - 12,726 12,726 12,726
22,000 22,000 22,000 22,000 22,000 22,000 22,000
145 145 145 145 145 145 145
66 66 66 66 66 66 66
59 59 59 59 59 59 59
1111111
34 34 34 34 34 34 34
1113333
2 2 2 - - - -
Fiscal Year
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IV. OTHER REQUIRED REPORTS SECTION
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202
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Year Ended December 31, 2011
Notes to the schedule of expenditures of federal awards
Note 1. Basis of Presentation
The financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information, of the City of Columbia Heights, Minnesota, including its component units, follow generally accepted accounting principles.
The government-wide and the proprietary financial statements are reported using the accrual basis of accounting. The governmental fund
financial statements are reported using the modified accrual basis of accounting as disclosed in the notes to the financial statements. The
above schedule of expenditures of federal awards includes only the federal grant activity of the City and its component units and is
presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB
Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the basic financial statements. "ARRA" is an acronym for the American
Recovery & Reinvestment Act of 2009.
Note 2. Subrecipients
During 2011, the City of Columbia Heights did not pass federal awards through to any subrecipients.
Note 3. Reporting Entity
For the puposes of this schedule, the , reporting entity includes all funds of the City of Columbia Heights, Minnesota. Also included in the
reporting entity, as blended component units, are the Columbia Heights Economic Development Authority and the Columbia Heights
Housing and Redevelopment Authority, as the governing boards are substantively the same as the City Council, and the City is in a
relationship of benefit/burden with the Authorities.
211
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2011
SECTION I - SUMMARY OF AUDIT RESULTS
Financial Statements
A. Type of auditors’ report issued: Unqualified
B. Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiencies identified that are not
considered to be material weaknesses?
X Yes None
reported
C. Noncompliance material to financial statements
noted?
Yes X No
Federal Awards
D. Internal control over major programs:
• Material weakness(es) identified? Yes X No
• Significant deficiencies identified that are not
considered to be material weaknesses?
Yes X None
reported
E. Type of auditors’ report issued on compliance for
major programs:
Unqualified
F. Any audit findings disclosed that are required to be
reported in accordance with section 510(a) of
Circular A-133?
Yes X None
reported
G. Identification of major programs:
Name of Federal Program CFDA Number
Transportation, Community and System Preservation Program - ARRA
20.205
Federal-Aid Highway Program Project Grant – ARRA 20.205
Low Rent Public Housing (operating fund subsidy) 14.850
H. Dollar threshold used to distinguish between Type A
and Type B programs:
$300,000
I. Auditee qualified as a low-risk auditee: Yes X No
212
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2011
SECTION II – FINANCIAL STATEMENT FINDINGS
2011-1 Recreational Revenue Documentation
Criteria: A properly developed accounting system would allow for the reconciliation of
purchases to the related deposit in order to substantiate the completeness of recreation
revenues.
Condition: In order to allow for reconciliation of the deposits to registrations the registrations
must be processed the same day that the deposit is made.
Cause: A combination of the limitations of the Recreation revenue software and the staff
time allocated to work within those limitations.
Effect: When registrations are not processed on the same day as the related receipts are
deposited a reconciliation of revenue is not possible and there is a higher risk that a
misstatement of recreation revenue may occur and not be detected in a timely manner.
Recommendation: The city’s management should continue to monitor the cost benefit of
allocating additional staff time to the recreation department so that all registrations can be
processed on the day they are received.
Views of Responsible Officials and Corrective Action Plan: Three corrective action steps are
planned by the City for mid-2012:
1) Allocate and/or flex more staff time to peak registration periods, to be able to process all
registrations on the day payment is received.
2) Begin accepting Recreation customer registrations over the internet. This is expected to
reduce some data entry time required by staff during peak registration periods. To this
end, the Recreation department has already purchased a web-based version of its existing
registration software and is currently populating its database.
3) Establish accounts within the web-based registration software for all items for which
Recreation payments are received, in order to minimize the number of reconciling items
to review between total registrations and total deposits. Previously, certain Recreation
sales and services were not included in the registration program.
213
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2011
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No current year findings.
SECTION IV – PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED
COSTS
No prior year findings.
214
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, 2011
Page 2 of 2
Public HousingPublic Housing
OperatingCapital Fund
Line Subsidy Program
Item Account Description 14.850 14.872 Total Projects
Revenue:
703 Net tenant rental revenue $347,318 $ - $347,318
704 Tenant revenue - other 13,626 - 13,626
706 HUD PHA grants 166,895 9,855 176,750
711 Investment income - unrestricted 2,789 - 2,789
700 Total revenue 530,628 9,855 540,483
Expenses:
911 Administrative salaries 25,500 - 25,500
912 Auditing fees 1,607 - 1,607
913 Outside management fees 154,824 - 154,824
914 Advertising and marketing 517 - 517
916 Other operating - administrative 6,753 - 6,753
917 Legal expense 4,385 - 4,385
919 Other expense 2,052 - 2,052
931 Water 12,458 - 12,458
932 Electricity 52,684 - 52,684
933 Gas 45,217 - 45,217
936 Sewer 6,773 - 6,773
938 Other utilities expense 12,070 - 12,070
942 Ordinary maintenance and operations - materials and other 14,833 - 14,833
943 Ordinary maint. and operations contracts - HVAC 14,373 - 14,373
943 Ordinary maint. and operations contracts - snow removal 2,449 - 2,449
943 Ordinary maint. and operations contracts - elevator 28,549 - 28,549
943 Ordinary maint. and operations contracts - grounds 4,635 - 4,635
943 Ordinary maint. and operations contracts - unit turnaround 17,687 - 17,687
943 Ordinary maint. and operations contracts - plumbing - - -
943 Ordinary maint. and operations contracts - extermination 2,639 - 2,639
943 Ordinary maint. and operations contracts - janitorial 4,275 - 4,275
943 Ordinary maint. and operations contracts - routine maintenance 24,775 - 24,775
943 Ordinary maint. and operations contracts - miscellaneous 1,120 - 1,120
952 Protective services 6,724 - 6,724
961 Insurance premiums 20,950 - 20,950
962 Other general expenses 2,072 - 2,072
963 Payments in lieu of taxes 22,769 - 22,769
969 Total operating expenses 492,690 0 492,690
974 Depreciation 105,725 - 105,725
900 Total expenses 598,415 0 598,415
1001Operating transfers in - - -
1002Operating transfers out - - 0
1010 Total other financing sources (uses)0 0 0
1000Excess (deficiency) of revenue over expenses and
and other financing uses (sources)($67,787)$9,855 ($57,932)
Memo account information:
1103 Beginning equity $2,262,566 $ - $2,262,566
1120 Unit months available 1,212 - 1,212
1121 Number of unit months leased 1,209 - 1,210
217
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, 2011
STATEMENT AND CERTIFICATION OF ACTUAL MODERNIZATION COSTS
FY 2008 FY 2009 FY 2009 FY 2010
MN 46P10550108MN 46P10550109MN 46S10550109MN 46P105501-10
A.The actual modernization costs are as follows:
Funds approved $104,250 $112,026 $131,959 $110,976
Funds (expended)(104,250)(112,026)(129,933) -
Excess of funds approved (expended)$0 $0 $2,026 $110,976
Funds advanced - HUD CFP Grants $104,250 $91,359 $129,933 $ -
Funds (expended):
In prior years (74,082)(2,118)(7,631) -
In current year (30,168)(109,908)(122,302)(18,352)
Excess of funds advanced (expended)$0 ($20,667)$0 ($18,352)
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.
218