HomeMy WebLinkAbout2013 CAFRCITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
PREPARED BY:
FINANCE DEPARTMENT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2013
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
I. INTRODUCTORY SECTION
Principal City Officials 3
Organizational Chart 4
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial Reporting9
II. FINANCIAL SECTION
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net PositionStatement 132
Statement of ActivitiesStatement 234
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 336
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 438
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 541
Statement of Net Position - Proprietary FundsStatement 642
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 744
Statement of Cash Flows - Proprietary FundsStatement 846
Statement of Fiduciary Net Position - Fiduciary FundsStatement 950
Notes to Financial Statements 51
Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1086
Schedule of Funding Progress for the Retiree Health PlanStatement 1188
Budgetary Comparison Schedule - Note to RSI89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 1294
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 1395
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 14100
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 15102
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Cable Television FundStatement 16104
Actual - Police Forfeiture FundStatement 17105
Actual - Police Grants FundStatement 18106
Budget and Actual - Library FundStatement 19107
Actual - After School Programs FundStatement 20108
Actual - Recreation Contributed Projects FundStatement 21109
Actual - Contributed Projects - Other FundStatement 22110
Actual - Special Projects FundStatement 23111
Budget and Actual - Community Development FundStatement 24112
Actual - Anoka County Comm Dev Programs FundStatement 25113
Economic Development Authority (Component Unit):
Budgetary Comparison Schedule - Administration FundStatement 26114
Housing and Redevelopment Authority (Component Unit):
Combining Balance SheetStatement 27115
Combining Statement of Revenues, Expenditures and Changes in
Fund BalanceStatement 28116
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Parkview Villa North FundStatement 29117
Budget and Actual - Parkview Villa South FundStatement 30118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 31120
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 32122
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 33127
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 34128
Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Position Statement 35130
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 36131
Subcombining Schedule of Cash Flows Statement 37132
Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 38133
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 39134
Subcombining Schedule of Cash Flows Statement 40135
Refuse Utility Fund:
Subcombining Schedule of Net Position Statement 41136
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 42137
Subcombining Schedule of Cash Flows Statement 43138
Storm Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 44139
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 45140
Subcombining Schedule of Cash Flows Statement 46141
Liquor Fund:
Subcombining Schedule of Net Position Statement 47143
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net Position Statement 48144
Subcombining Schedule of Cash Flows Statement 49146
Internal Service Funds:
Combining Statement of Net Position Statement 50150
Combining Statement of Revenues, Expenses and Changes in Fund
Net Position Statement 51151
Combining Statement of Cash Flows Statement 52152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Central Garage Fund:
Subcombining Schedule of Net Position Statement 53153
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 54154
Subcombining Schedule of Cash FlowsStatement 55155
Information Systems Fund:
Subcombining Schedule of Net Position Statement 56156
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 57157
Subcombining Schedule of Cash FlowsStatement 58158
Insurance Fund:
Subcombining Schedule of Net Position Statement 59159
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 60160
Subcombining Schedule of Cash FlowsStatement 61161
Compensated Absences Fund:
Subcombining Schedule of Net Position Statement 62162
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 63163
Subcombining Schedule of Cash FlowsStatement 64164
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 65166
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Positions by ComponentTable 1170
Changes in Net PositionTable 2172
Fund Balances - Governmental FundsTable 3176
Changes in Fund Balances - Governmental FundsTable 4178
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of All Taxable PropertyTable 5182
Direct and Overlapping Property Tax RatesTable 6183
Principal Property TaxpayersTable 7185
Property Tax Levies and CollectionsTable 8186
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9188
Ratios of Outstanding Net General Bonded Debt by TypeTable 10190
Direct and Overlapping Governmental Activities DebtTable 11192
Legal Debt Margin InformationTable 12193
Pledged Revenue Coverage Non-Obligation DebtTable 13194
Demographic and Economic:
Demographic and Economic StatisticsTable 14195
Principal EmployersTable 15197
Operating Information:
City Government Employees by Function/ProgramTable 16198
Operating Indicators by Function/ProgramTable 17200
Capital Asset Statistics by Function/ProgramTable 18202
IV. OTHER REQUIRED REPORTS SECTION
Minnesota Legal Compliance Report 207
Independent Auditor's 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 209
Report on Supplementary Information - Financial Data Schedule211
U.S. Department of Housing and Urban Development:
Financial Data Schedule 213
Financial Data Schedule - Statement and Certification of Actual Modernization Costs215
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2013
Name Official Title
Mayor and Council:
Gary L. PetersonMayor
Tammera Ericson DiehmCouncilmember
Donna SchmittCouncilmember
Bruce NawrockiCouncilmember
Robert A. WilliamsCouncilmember
Administration:
Walter FehstCity Manager
Linda MageeAssistant to City Manager
Joseph KloiberTreasurer, Finance Director
Jim HoeftCity Attorney
Kevin HansenPublic Works Director, City Engineer
Scott NadeauChief of Police
Gary GormanChief of Fire
Renee DoughertyLibrarian
Scott ClarkCommunity Development Director
Keith WindschitlRecreation Services Director
Larry ScottLiquor Operations Manager
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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 12, 2014
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, 2013, 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 unmodified (“clean”)
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2013. 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.
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.
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 19,667. The City is empowered to levy a tax on
both real and personal property within its boundaries.
Information Systems
Financial Reporting
Accounts Payable
Utility Billing
Payroll
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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 2013, 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 and dependency on state aid to
supplement local revenues. The nation-wide trend 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.
Historically, state aid revenue has been a key component of the City’s operating budget;
however, 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 role of state aid in the
City’s operating budget. Under the plan, state aid, when available, would primarily be used to
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reduce the City’s debt service and/or for capital outlay. 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
By Council resolution, a formal policy has been adopted regarding the minimum unassigned
fund balance for the general fund. The goal of the policy is to begin each year with sufficient
working capital to fund operations. The policy establishes a year-end targeted unassigned fund
balance of 45% of the general fund budgeted expenditures for the subsequent year. At December
31, 2013, the unassigned fund balance in the general fund was sufficient to meet 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,
with some recent recovery. 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. These properties are being marketed and new homes are being
built.
In 2013, a citizen task force reported that there was a need to replace the City library with a
larger, more modern facility.
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, 2012. 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.
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.
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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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4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota, as of and for the year ended December 31, 2013, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements as listed
in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Columbia Heights, Minnesota, as
of December 31, 2013, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Emphasis of Matter – Implementation of GASB 65
As described in Note 15 to the financial statements, in 2013, the City adopted new accounting
guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our
opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the City of Columbia Heights, Minnesota’s 2012 financial statements,
and we expressed an unmodified audit opinion on the respective financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining
fund information in our report dated June 28, 2013. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2012 is consistent, in all
material respects, with the audited financial statements from which they were derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information and the schedule of
funding progress as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
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Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Columbia Heights, Minnesota’s basic financial statements. The
introductory section, combining and individual fund financial statements and schedules and statistical
section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
fund financial statements and schedules are fairly stated in all material respects in relation to the
basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide
any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 12,
2014, on our consideration of the City of Columbia Heights, Minnesota’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City of Columbia Heights, Minnesota’s internal control over financial
reporting and compliance.
HLB TAUTGES REDPATH, LTD.
June 12, 2014
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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, 2013. 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, 2013, by $69,305,558 (net position).
Of this amount, $28,912,689, or 42%, is unrestricted net position which may be used to meet the
City’s ongoing obligations to citizens and creditors.
During 2013, the City’s total net position increased by $1,111,258 or approximately 2% from the
prior year. Governmental activities increased net position by $74,198 and the City’s business-type
activities increased net position by $1,037,060.
As of December 31, 2013, the combined fund balances of the City’s governmental funds were
$24,217,234. This is an increase of $204,805 or less than 1% from the prior year. Approximately 92
percent of this amount, $22,374,482 is available for use within the City’s constraints and policies.
As of December 31, 2013, unassigned fund balance for the General fund was $6,254,402; which
equals 56% of the total subsequent year General fund budgeted expenditures.
During 2013, the City’s total bonded debt increased by $152,000 to an end of year total of
$24,489,000. This increase was primarily caused by the issuance of the 2013A bonds for $2,775,000
offset with partial refunding and early redemption of the 2006A bonds and annual principal payments
on all other debt service.
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 position presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
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Management’s Discussion and Analysis
The statement of activities presents information showing how the City’s net position changed during
the most recent fiscal year. All changes in net position 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 2013 are as follows:
General fund
2008A taxable G.O. housing improvement area bonds fund
Municipal state aid street fund
Capital improvements general government buildings fund
Capital equipment replacement general government fund
18
Management’s Discussion and Analysis
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
each 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.
Other information. Required supplementary information on funding progress for retiree health
19
Management’s Discussion and Analysis
benefits is presented as Statement 11 of this report. 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 65 of this report.
Government-wide Financial Analysis
As noted above, net position may serve over time as a useful indicator of a government’s financial
position. At December 31, 2013, the City’s assets exceeded its liabilities by $69,305,558.
$37,723,897 or 54% of the City’s net position 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 position invested in
capital assets is 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 position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position,
$28,912,689 or 42% may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2013, the City is able to report positive balances in all three categories of net
position, both for the City as a whole, as well as for its separate governmental and business-type
activities.
2013 2012 2013 2012 2013 2012
Assets:
Current and other assets $30,662,634$30,482,123$11,108,045$8,541,440$41,770,679$39,023,563
Capital assets 40,986,51142,128,19215,148,13215,126,72456,134,64357,254,916
Total assets $71,649,145 $72,610,315 $26,256,177 $23,668,164 $97,905,322 $96,278,479
Liabilities:
Current liabilities $2,012,675$2,400,190$1,719,533$1,491,206$3,732,208$3,891,396
Noncurrent liabilities 18,029,75018,677,6036,837,8065,522,55124,867,55624,200,154
Total liabilities $20,042,425$21,077,793$8,557,339$7,013,757$28,599,764$28,091,550
Net position:
Net invested in capital assets $27,358,490$27,666,461$10,365,407$9,819,666$37,723,897$37,486,127
Restricted 2,025,6522,624,466643,320161,5032,668,9722,785,969
Unrestricted 22,222,57821,241,5956,690,1116,680,60928,912,68927,922,204
Total net position $51,606,720$51,532,522$17,698,838$16,661,778$69,305,558$68,194,300
CITY OF COLUMBIA HEIGHTS' NET POSITION
TotalsGovernmental Activities Business-Type Activities
20
Management’s Discussion and Analysis
2013 2012 2013 2012 2013 2012
Revenues:
Program revenues:
Charges for services $2,270,998 $2,180,021 $15,581,195 $15,278,335$17,852,193$17,458,356
Operating grants and
contributions 801,344 825,773 84,871 62,471 886,215 888,244
Capital grants and
contributions 1,881,933 1,002,270 - 50,000 1,881,933 1,052,270
General revenues:
Property taxes 9,827,378 9,363,598 - - 9,827,378 9,363,598
Tax increment collections 532,524 553,050 - - 532,524 553,050
Grants and contributions not
restricted to specific programs 1,000,513 1,003,552 - - 1,000,513 1,003,552
Unrestricted investment earnings (664,694) 295,950 (152,300) 63,321 (816,994) 359,271
Gain on sale of capital assets
used in governmental activities 11,842 7,338 - - 11,842 7,338
Total revenues 15,661,838 15,231,552 15,513,766 15,454,127 31,175,604 30,685,679
Expenses:
General government 1,976,2071,977,594 - - 1,976,2071,977,594
Public safety 5,683,7695,708,009 - - 5,683,7695,708,009
Public works 2,843,1023,200,572 - - 2,843,1023,200,572
Culture and recreation 2,553,7602,500,719 - - 2,553,7602,500,719
Community development 2,010,0402,157,966 - - 2,010,0402,157,966
Interest on long-term debt 808,933845,879 - - 808,933845,879
Water - - 2,371,4142,311,8582,371,414 2,311,858
Sewer - - 1,538,9701,464,2691,538,970 1,464,269
Refuse - - 1,628,9661,601,6481,628,966 1,601,648
Storm sewer - - 307,876329,998 307,876 329,998
Liquor - - 8,341,3098,386,3528,341,309 8,386,352
Total expenses 15,875,811 16,390,739 14,188,535 14,094,125 30,064,346 30,484,864
Increase (decrease) in
net posit ion before transfers (213,973) (1,159,187) 1,325,231 1,360,002 1,111,258 200,815
Transfers 288,171 263,814 (288,171) (263,814) - -
Increase (decrease) in net position 74,198 (895,373) 1,037,060 1,096,188 1,111,258 200,815
Net position - January 1, as previously reported51,532,522 52,427,895 16,661,778 15,630,779 68,194,300 68,058,674
Prior period adjustment - - - (65,189) - (65,189)
Net position - January 1, as restated 51,532,522 52,427,895 16,661,778 15,565,590 68,194,300 67,993,485
Net position - December 31 $51,606,720$51,532,522$17,698,838$16,661,778$69,305,558$68,194,300
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION
Governmental Activities Business-Type Activities Totals
Changes in net position - governmental activities. During the current year, governmental activities
increased the City’s total net position by $74,198. During the prior year, governmental activities
decreased the City’s net position by $895,373. Key differences between the current and prior year
change in net position of governmental activities include:
In 2013, investment income of the governmental activities decreased approximately
$960,000 compared to the prior year. This was primarily the result of a significant
2013 decrease in the fair value on investments of $934,338.
In 2013, a capital grant was received from Anoka County to assist with the purchase
and demolition of a large commercial property on Central Avenue for $877,628.
Property taxes increased $464,000. This consists of:
o Excess TIF reimbursement - $173,000
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Management’s Discussion and Analysis
o Area wide fiscal disparities - $190,000
o Local property tax levy and other collections - $101,000
2013 expenses of the community development function decreased by approximately
$150,000 compared to 2012 due to a smaller decline in the carrying value of property
held for resale.
2013 expenses of the public works function decreased by approximately $300,000
compared to 2012. 2012 included the one-time local share of installation of new
state-owned traffic signals on state highway 65.
The 2013 phase of the City’s ongoing street rehabilitation program consisted of larger
scale projects that met the City’s threshold for capitalization of infrastructure.
Whereas, the 2012 phase of the program consisted of a several smaller projects that
did not meet the threshold. This circumstance decreased 2013 public works expenses
by approximately an additional $57,000.
Culture and recreation function expenses increased $53,000. A majority of this
increase, $50,000, was due to an increase in Parks expenses. The City has been
improving many of the parks within the City, more personnel time and construction
materials were charged to these projects. These projects did not meet the City’s
capitalization threshold.
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Management’s Discussion and Analysis
Business-type activities. In 2013, business-type activities increased the City’s total net position by
$1,037,060 or 6%. In the prior year, business-type activities increased the City’s net position, after
the restatement for implementation of GASB Statement 65, by $1,096,188 or 7%. The key
differences between the current and prior year change in business-type activities net position were
the following:
Similar to the governmental activities, investment income decreased approximately $216,000
compared to the prior year. This was primarily the result of a significant 2013 decrease in
fair value on investments of $208,300.
Overall, charges for utility services increased $303,000 or 2%. This reflects a 3% rate
increase, offset by reduced volume.
The water expenses increased by approximately $60,000. $33,000 of this increase was the
result of an increased number of stop box utility repairs found during street improvements
and foreclosure shut-offs, as well as an increased cost in restoration after repairs.
Approximately $11,000 was for an increase in annual depreciation.
Sewer expenses increased $75,000. $25,000 was a rate increase from a supplier; $25,000
was for a sewer catch basin replacement project; $18,000 was an increase in personnel
expense allocation.
23
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
24
Management’s Discussion and Analysis
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, 2013, the City’s governmental funds reported combined fund balances of
$24,217,234. Committed, assigned and unassigned fund balance, which is available for spending at
the City’s discretion, has a balance of $18,494,776. 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
for debt service ($1,000,831), land held for resale ($1,422,068), prepaid items ($95,684), interfund
loans ($325,000), tax increment ($1,400,497), and other restricted purposes.
The general fund is the chief operating fund of the City. In 2013, fund balance in the general fund
increased by $320,368 or 5.3%. In the prior year, fund balance in the general fund increased by
$207,885 or 3.5%. Key differences between the current and prior year change in the fund balance of
the general fund include the following:
Total general fund revenue increased approximately $168,900 in 2013. This reflects a
property tax increase of approximately $516,000:
o Excess TIF reimbursement - $78,000
o Area wide fiscal disparities - $190,000
o Local property tax levy - $236,000;
offset by reductions in federal grants and the fair value of investments of $75,000 and
$268,000; respectively.
Total general fund expenditures remained relatively the same, increasing $11,440 or 0.1% in
2013, as compared to the prior year. Total activity remained relatively the same, with
differences between functions offseting.
The changes in fund balance of the other major governmental funds in 2013, and key elements of
those changes, were as follows:
2008A Taxable GO Housing Improvement Area Bonds Fund increased $6,261. This is the
result of routine collection of special assessments and payment of related debt service
The Municipal State Aid Street Fund increased by $100,716. This reflects revenue first
available in the current year that correspond to expenses incurred in prior years.
The Capital Improvements General Government Buildings Fund decreased by $24,427. This
is the amount by which 2013 improvements and decline in 2013 investment income exceeded
transfers-in for building improvements.
The Capital Equipment Replacement General Government Fund decreased by $98,106. This
is the amount by which 2013 equipment purchases and decline in 2013 investment income
exceeded transfers-in for equipment purchases.
The Capital Improvements PIR Fund increased by $167,837. This primarily reflects current
year special assessment revenue, from prior year improvement projects, in excess of current
25
Management’s Discussion and Analysis
year expenses on current year improvement projects. PIR is the acronym for public
improvement revolving fund.
The Capital Improvements Development Fund decreased by $40,824. This primarily reflects
the reduction in carrying value for real estate held for resale.
The combined total fund balances of the nonmajor governmental funds decreased by $227,020 or
2.5% in 2013. Whereas in the prior year, combined total fund balances of the nonmajor
governmental funds decreased by $432,201 or 4%. This difference involved numerous changes, but
the most significant elements included:
The G.O. Improvement/Revenue Bonds 2006A fund decreased by $459,693. This reflects
the partial early redemption in 2013 of the related debt.
The TIF 47th and Central Avenue fund decreased $100,731. This primarily reflects the
reduction in carrying value for real estate held for resale.
The Library fund increased by $94,917. The library had two vacant full-time positions for
approximately half of the year.
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, 2013, net position of the major proprietary funds included the following amounts
of unrestricted net position:
Water Fund $350,163
Sewer Fund $1,320,130
Refuse Fund $1,321,587
Storm Sewer Fund $503,204
Liquor Fund $2,572,080
The 2013 changes in net position of the major proprietary funds included the following:
Water Fund $535,109
Sewer Fund ($439,931)
Refuse Fund $171,542
Storm Sewer Fund $457,695
Liquor Fund $317,789
The change in proprietary funds reflects in part a $400,000 one-time operating transfer from Sewer to
Storm Sewer. Other factors concerning the finances of the proprietary funds are addressed above in
the analysis of the City’s business-type activities.
26
Management’s Discussion and Analysis
Budgetary Highlights
General fund. The changes between the original and final 2013 general fund budget consist of:
A budget amendment to reclassify contingent labor costs across all departments in the
general fund was implemented once labor contracts were settled. The total amendment for
this purpose was $131,194.
The public safety increase of $103,818 was approximately $77,000 of the above mentioned
budget amendment and an increase to the amount budgeted for charges for services. This
reflects additional police and fire services and training funded by external entities after the
adoption of the original budget.
An increase of $175,000 in transfers-out to the nonmajor funds, to utilize state aid for the
cancellation of a portion of the 2013 tax levy for debt service purposes.
Actual general fund revenues in 2013 were less than budgeted by $41,763 or 0.4%. This variance
was primarily the result of the following:
A negative change in fair value on investments of $262,438. In addition to the reduction in
fair value, $14,000 less investment interest was collected then budgeted.
Reimbursement of excess tax increments were received for $172,700. This is an item which
is not budgeted.
The increase in the number of rental units within the City exceeded budgeted forecasts. The
increase in rental license revenue was $26,172.
A favorable variance in intergovernmental revenue of $41,897; including $28,000 of public
safety grants and $9,000 of state reimbursement for law officer training.
Actual general fund expenditures in 2013 were less than budgeted by $552,892 or 5%. The largest
element of this variance was $404,768 of personnel costs. This is a result of multiple retirements,
positions being hired at entry rates and vacancies for large portions of the year.
Police department personnel costs were $197,000 under budget. This is a result of employee
turnover and temporarily-unfilled positions from injury-on-duty. This was somewhat offset
by nonpersonnel police costs exceeding budget, yielding a net total of $182,000 of police
department expenditures under budget.
Engineering department personnel costs were $95,326 under budget. This is the result of a
vacant Engineering Tech position. In addition, public works staff hours included in this
budget were later assigned to projects in other funds.
Actual expenses of the parks and recreation department were $127,187 under budget. The
majority of this consisted of personnel expense variances:
27
Management’s Discussion and Analysis
o Custodial services at the City’s banquet hall/rental facility were under budget by
$25,000. This was partially a result of over forecasting rental activity in 2013.
o Certain 2013 youth recreation activities were able to use grant revenue in the
nonmajor funds to hire seasonal summer staff, in lieu of the general fund recreation
department budget.
o For 2013 certain part-time positions were budgeted to staff the City’s gymnasium
facility, but much of the actual staffing was achieved by adding these duties to an
existing full-time position. In addition, 2013 actual contracted maintenance costs for
the city gymnasium facility were under budget, as this facility was built within the
last few years, and a reliable trend has not yet been established from which to
accurately forecast maintenance. These two factors combined to leave the gymnasium
activity a total of $38,432 under budget.
The remaining balance of the general fund expenditure budget variance was spread across all other
departments of the general fund.
Capital Asset and Debt Administration
Capital assets. The City’s capital assets for its governmental and business-type activities as of
December 31, 2013, amount to $56,134,642 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, 2013, the City had $466,265 of noncancellable contractual commitments for
construction in 2013. Significant capital asset activity during 2013 included the following:
Year
StartedCost to DateStatus
Street Rehabilitation - Zone 72012673,971 in-service
Watermain Clean and Line2012328,200 in-progess
Concrete Street - Zone 32013861,213 in-progess
Pump Station 2 PVR2013163,570 in-progess
Commercial Water Meter Replacement 2013204,715 in-service
Project
As of December 31, 2013
28
Management’s Discussion and Analysis
City of Columbia Heights’ Capital Assets
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not being depreciated:
Land $5,325,624$ - $ - $5,325,624
Construction in progress 888,014 918,440 (916,062) 890,392
Total capital assets not being depreciated 6,213,637 918,440 (916,062) 6,216,016
Capital assets - being depreciated:
Buildings 28,126,405 359,664 - 28,486,069
Equipment 8,307,494 164,652 (149,393) 8,322,753
Infrastructure 29,632,619 558,764 - 30,191,383
Total capital assets being depreciated 66,066,518 1,083,080 (149,393) 67,000,205
Less accumulated depreciation for:
Buildings 11,366,977 726,008 - 12,092,985
Equipment 5,598,815 473,992 (144,293) 5,928,514
Infrastructure 13,186,171 1,022,039 - 14,208,210
Total accumulated depreciation 30,151,963 2,222,039 (144,293) 32,229,709
Capital assets being depreciated - net 35,914,555 (1,138,959) (5,100) 34,770,496
Governmental activities capital assets - net42,128,192 (220,519) (921,162) 40,986,511
Business-type activities:
Capital assets - not being depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 259,930 534,178 (303,200) 490,908
Total capital assets not being depreciated 2,609,143 534,178 (303,200) 2,840,121
Capital assets - being depreciated:
Buildings 4,631,314 303,232 - 4,934,546
Equipment 2,215,507 113,780 (126,000) 2,203,287
Infrastructure 16,019,696 - - 16,019,696
Total capital assets being depreciated 22,866,517 417,012 (126,000) 23,157,529
Less accumulated depreciation for:
Buildings 1,233,985 137,036 - 1,371,021
Equipment 1,615,051 125,268 (126,000) 1,614,319
Infrastructure 7,499,900 364,278 - 7,864,178
Total accumulated depreciation 10,348,936 626,582 (126,000) 10,849,518
Capital assets being depreciated - net 12,517,581 (209,570) - 12,308,011
Business-type activities capital assets - net15,126,724 324,608 (303,200) 15,148,132
Total capital assets - net $57,254,916$104,089($1,224,362)$56,134,643
Additional information on the City’s capital assets can be found in Note 5 to the financial statements.
Long-term debt. During 2013, the City’s total bonded debt increased by $152,000 to an end of year
total of $24,489,000. This was primarily from the issuance in 2013 of $2,775,000 in bonds to
finance storm water management projects and other projects, offset by the partial early redemption
and partial refunding of the 2006 bonds and annual principal installments on all other 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 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, 2013,
29
Management’s Discussion and Analysis
the City’s debt limit under this statute was $29,819,529 and $12,685,000 of the City’s outstanding
debt was of the type to which this limit applies.
City of Columbia Heights’ Long-Term Debt
2013 2012 2013 2012 2013 2012
General obligation bonds:
Repaid only with general taxes $11,898,431$12,308,431$ - $ - $11,898,431$12,308,431
With other pledged revenues 3,044,5903,573,2992,436,9791,123,2705,481,5694,696,569
Revenue bonds 2,679,0002,737,0004,430,0004,595,0007,109,0007,332,000
Compensated absences 976,143950,937187,050172,1071,163,1931,123,044
Postemployment benefits other
than pensions 152,154105,492 - - 152,154 105,492
$18,750,318$19,675,159$7,054,029$5,890,377$25,804,347$25,565,536
Governmental Activities Business-Type Activities Totals
At December 31, 2013, 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, 2013, 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, 2013, 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 $1,163,193 and
$152,154 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 2013, the average annual unemployment rate for Anoka County, which includes the City, was
4.8%. This is a decrease from a rate of 5.6% from the prior year. This compares to the average 2013
state and national rates of 5.4% and 6.8% respectively. The Consumer Price Index in the region
compares favorably to national trends.
These factors were considered in preparing the City of Columbia Heights’ 2013 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.
30
BASIC FINANCIAL STATEMENTS
31
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2013 Page 1 of 2
With Comparative Totals For December 31, 2012
GovernmentalBusiness-Type
ActivitiesActivities20132012
Current assets:
Cash and investments$24,482,073$5,907,225$30,389,298$27,767,018
Cash and investments with fiscal agent - 399,254399,254399,254
Receivables:
Accounts (net of allowance for uncollectibles)142,1361,810,3051,952,4411,689,352
Special assessments - current458,884 - 458,884474,088
Taxes 377,839 - 377,839417,408
Interest50,72511,20061,92575,112
Due from other governmental units - current857,45235,957893,409702,009
Internal balances(68,942)68,942 - -
Prepayments149,73581,254230,989215,437
Inventory - at cost63,0912,793,9082,856,9992,615,235
Real estate held for resale1,919,419 - 1,919,4192,355,806
Total current assets28,432,41211,108,04539,540,45736,710,719
Noncurrent assets:
Special assessments receivable - noncurrent2,230,222 - 2,230,2222,320,215
Capital assets (net of accumulated depreciation):
Land5,325,6242,349,2137,674,8377,674,837
Buildings16,393,0843,563,52519,956,60920,156,757
Equipment2,394,239588,9682,983,2073,309,134
Infrastructure15,983,1728,155,51824,138,69024,966,244
Construction in process890,392490,9081,381,3001,147,944
Total noncurrent assets43,216,73315,148,13258,364,86559,575,131
Total assets71,649,14526,256,17797,905,32296,285,850
Totals
Primary Government
Assets
The accompanying notes are an integral part of these financial statements.
32
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2013 Page 2 of 2
With Comparative Totals For December 31, 2012
GovernmentalBusiness-Type
ActivitiesActivities20132012
Current liabilities:
Accounts payable$220,642$882,027$1,102,669$949,001
Accrued salaries and withholdings payable230,79657,112287,908236,495
Contracts payable - retained percentage102,11549,729151,844104,110
Due to other governmental units185,304414,480599,784545,320
Unearned revenue206,518 - 206,518203,160
Accrued interest payable308,45499,962408,416451,400
Deposits38,278 - 38,27836,528
Compensated absences payable - current58,56811,22369,79167,382
Bonds payable - current662,000205,000867,0001,298,000
Total current liabilities2,012,6751,719,5333,732,2083,891,396
Noncurrent liabilities:
Compensated absences payable - noncurrent917,575175,8271,093,4021,055,662
Other postemployment benefits payable - noncurrent152,154 - 152,154105,492
Bonds payable - noncurrent16,960,0216,661,97923,622,00023,039,000
Total noncurrent liabilities18,029,7506,837,80624,867,55624,200,154
Total liabilities20,042,4258,557,33928,599,76428,091,550
Net investments in capital assets27,358,49010,365,40737,723,89737,486,127
Restricted for:
Debt service584,578643,3201,227,8981,289,332
Tax increment purposes1,069,796 - 1,069,7961,097,907
Other purposes371,278 - 371,278398,730
Unrestricted22,222,5786,690,11128,912,68927,922,204
Total net position$51,606,720$17,698,838$69,305,558$68,194,300
Liabilities
Net position
Primary Government
Totals
The accompanying notes are an integral part of these financial statements.
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$1,976,207$385,728
Public safety5,683,769706,168
Public works2,843,10239,141
Culture and recreation2,553,760163,931
Community development2,010,040976,030
Interest on long-term debt808,933 -
Total governmental activities15,875,8112,270,998
Business-type activities:
Water 2,371,4143,020,174
Sewer 1,538,9701,618,786
Refuse 1,628,9661,826,226
Storm sewer 307,876368,925
Liquor 8,341,3098,747,084
Total business-type activities14,188,53515,581,195
Total primary government$30,064,346$17,852,193
The accompanying notes are an integral part of these financial statements.
34
Statement 2
OperatingCapital
Grants andGrants andGovernmentalBusiness-Type
ContributionsContributionsActivitiesActivities20132012
$ - $ - ($1,590,479)$ - ($1,590,479)($1,773,203)
511,527 - (4,466,074) - (4,466,074)(4,414,695)
233,748855,227(1,714,986) - (1,714,986)(2,074,307)
56,069 - (2,333,760) - (2,333,760)(2,305,404)
- 1,026,706(7,304) - (7,304)(969,187)
- - (808,933) - (808,933)(845,879)
801,3441,881,933(10,921,536)0(10,921,536)(12,382,675)
1,971 - - 650,731650,731465,525
- - - 79,81679,816117,247
68,565 - - 265,825265,825272,683
14,335 - - 75,38475,38423,345
- - - 405,775405,775417,881
84,871001,477,5311,477,5311,296,681
$886,215$1,881,933(10,921,536)1,477,531(9,444,005)(11,085,994)
General revenues:
Property taxes9,827,378 - 9,827,3789,363,598
Tax increment collections532,524 - 532,524553,050
Grants and contributions not
restricted to specific programs1,000,513 - 1,000,5131,003,552
Unrestricted investment earnings:
Interest and dividends269,64456,000325,644342,510
Change in fair value(934,338)(208,300)(1,142,638)16,761
Gain on sale of capital assets used
in governmental activities11,842 - 11,8427,338
Transfers288,171(288,171) - -
Total general revenues and transfers10,995,734(440,471)10,555,26311,286,809
Change in net position74,1981,037,0601,111,258200,815
Net position - January 1, as previously reported51,532,52216,661,77868,194,30068,058,674
Prior period adjustment - - - (65,189)
Net position - January 1, as restated51,532,52216,661,77868,194,30067,993,485
.
Net position - December 31$51,606,720$17,698,838$69,305,558$68,194,300
Totals
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
Primary Government
The accompanying notes are an integral part of these financial statements.
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
General Fund
2008A Taxable GO
Housing
Improvement Area
Bonds Fund
Municipal State
Aid Street Fund
Assets
Cash and investments$6,616,431$188,316$ -
Receivables:
Accounts76,388 - -
Special assessments - 764,141 -
Taxes341,984 - -
Interest14,425300 -
Due from other governmental units106,198 - 295,000
Interfund receivable9,733 - -
Prepayments92,638 - -
Real estate held for resale - - -
Total assets$7,257,797$952,757$295,000
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$109,032$ - $3,283
Accrued salaries and withholdings payable199,119 - 2,119
Contracts payable - retained percentage12,481 - -
Due to other governmental units132,727 - -
Interfund payable - - 7,289
Unearned revenue145,916 - -
Deposits - - -
Total liabilities599,275012,691
Deferred inflows of resources:
Unavailable revenue261,245764,09415,000
Total deferred inflows of resources261,245764,09415,000
Fund balance:
Nonspendable92,638 - -
Restricted - 188,663 -
Committed50,237 - 267,309
Unassigned6,254,402 - -
Total fund balances6,397,277188,663267,309
Total liabilities, deferred inflows
of resources, and fund balances$7,257,797$952,757$295,000
Fund balance reported above
Amounts reported for governmental activities in the statement of net position 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 reported as unavailable
revenue 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 position.
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds.
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
36
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
2013
$1,071,393$3,939,026$889,597$1,503,890$7,791,865$ - $22,000,518
- - 2,856 - 62,892 - 142,136
- - 1,844,710 - 80,255 - 2,689,106
- - - - 35,855 - 377,839
2,7009,9002,1002,90014,500 - 46,825
- - 143,000 - 313,254 - 857,452
- 325,00080,255340,840185,708(616,536)325,000
- - - - 3,046 - 95,684
- - 45,600164,8441,708,975 - 1,919,419
$1,074,093$4,273,926$3,008,118$2,012,474$10,196,350($616,536)$28,453,979
$ - $1,790$35,666$2,417$47,099$ - $199,287
- - 219 - 24,160 - 225,617
- - 87,4342,200 - - 102,115
- - 2,658 - 49,919 - 185,304
- - - - 612,011(616,536)2,764
- - - - 52,929 - 198,845
- - 11,945 - 26,333 - 38,278
01,790137,9224,617812,451(616,536)952,210
- - 1,835,688 - 408,508 - 3,284,535
001,835,6880408,50803,284,535
- 325,00045,600164,8441,214,670 - 1,842,752
- - - - 3,691,043 - 3,879,706
1,074,0933,947,136988,9081,843,0134,109,022 - 12,279,718
- - - - (39,344) - 6,215,058
1,074,0934,272,1361,034,5082,007,8578,975,391024,217,234
$1,074,093$4,273,926$3,008,118$2,012,474$10,196,350($616,536)$28,453,979
$24,217,234
39,613,438
3,284,534
2,574,143
(18,082,629)
$51,606,720
The accompanying notes are an integral part of these financial statements.
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
General Fund
2008A Taxable
GO Housing
Improvement
Area Bonds Fund
Municipal State
Aid Street Fund
Revenues:
Taxes$8,142,980$ - $ -
Tax increment collections - - -
Special assessments - 108,213 -
Licenses and permits192,362 - -
Intergovernmental1,420,796 - 492,973
Charges for services579,455 - -
Fines and forfeitures129,132 - -
Investment income:
Interest and dividends70,9941,600 -
Change in fair value(262,438)(5,800) -
Other revenues5,146 - -
Total revenues10,278,427 104,013 492,973
Expenditures:
Current:
General government1,763,621 - -
Public safety5,109,836 - -
Public works1,380,330 - 113,422
Culture and recreation1,459,848 - -
Community development - - -
Capital outlay:
General government13,868 - -
Public safety - - -
Public works117,946 - 280,000
Culture and recreation39,768 - -
Community development - - -
Debt service:
Principal retirement - 50,000 -
Interest and fiscal charges - 47,752 -
Developer incentives - - -
Total expenditures9,885,217 97,752 393,422
Revenues over (under) expenditures393,210 6,261 99,551
Other financing sources (uses):
Transfers in382,500 - 4,734
Transfers out(455,342) - (3,569)
Bonds issued - - -
Sale of capital assets - - -
Total other financing sources (uses)(72,842)0 1,165
Net change in fund balance320,368 6,261 100,716
Fund balance - January 16,076,909182,402166,593
Fund balance - December 31$6,397,277$188,663$267,309
The accompanying notes are an integral part of these financial statements.
38
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
2013
$ - $ - $ - $ - $1,745,615$ - $9,888,595
- - - - 527,928 - 527,928
- - 559,506 - - - 667,719
- - - - 219,846 - 412,208
- - - - 805,631 - 2,719,400
- - 178,572 - 952,740 - 1,710,767
- - - - 18,891 - 148,023
13,60063,18010,60014,30075,870 - 250,144
(50,700)(181,800)(39,400)(53,200)(268,600) - (861,938)
7,6913,7963266,91280,706 - 104,577
(29,409)(114,824)709,604 (31,988)4,158,627 0 15,567,423
2,654 - - - 25,104 - 1,791,379
- 13,265 - - 48,221 - 5,171,322
- - 83,244 - 67,079 - 1,644,075
14,864 - - - 758,734 - 2,233,446
- - - 8,8361,196,437 - 1,205,273
- - - - - - 13,868
- 70,960 - - - - 70,960
- - 494,419 - 3,858 - 896,223
- - - - - - 39,768
- - 2,400 - 564,501 - 566,901
- - - - 1,509,730 - 1,559,730
- - - - 786,138 - 833,890
- - - - 163,972 - 163,972
17,518 84,225 580,063 8,836 5,123,774 0 16,190,807
(46,927)(199,049)129,541 (40,824)(965,147)0 (623,384)
22,50084,00027,677 - 1,136,117(1,330,788)326,740
- - (224,381) - (761,065)1,330,788(113,569)
- - 235,000 - 328,021 - 563,021
- 16,943 - - 35,054 - 51,997
22,500 100,943 38,296 0 738,127 0 828,189
(24,427)(98,106)167,837 (40,824)(227,020)0 204,805
1,098,5204,370,242866,6712,048,6819,202,411 - 24,012,429
$1,074,093$4,272,136$1,034,508$2,007,857$8,975,391$0$24,217,234
The accompanying notes are an integral part of these financial statements.
39
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40
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
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)$204,805
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 depreciation exceeded
outlays for capital assets.(1,201,851)
The net effect of various miscellaneous transactions involving capital assets, such as
sales, trade-ins and abandonments was a decrease in net position.(5,101)
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 position however. This
amount is the net effect of these differences in the treatment of long-term debt.996,709
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 position however, and is not reported as an expense in the statement of
activities.24,957
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 position however, and are reported as an expense
in the statement of activities.(46,662)
Revenue earned in the current year, that is unavailable in the current year, is not reported in the
governmental funds. Whereas, this amount is reported in the statement of activities in the
year in which it was earned.139,022
The net expenses of certain activities of internal service funds are reported within governmental
activities in the statement of activities.(37,681)
Change in net position of governmental activities (Statement 2)$74,198
The accompanying notes are an integral part of these financial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
Assets:Water Utility FundSewer Utility Fund
Current assets:
Cash and cash equivalents $998,616$1,375,452
Cash and cash equivalents with fiscal agent - -
Receivables:
Accounts (net of allowance for uncollectibles)799,898419,048
Interest 2,7003,000
Due from other governmental units - current - -
Interfund receivable 2,764 -
Prepayments - 81,254
Inventory - at cost 7,317 -
Total current assets1,811,295 1,878,754
Noncurrent assets:
Capital assets:
Land 45,22336,586
Construction in progress 473,821 -
Buildings 559,826403,659
Equipment 477,897939,340
Infrastructure 8,346,9656,154,219
Total capital assets 9,903,732 7,533,804
Less: accumulated depreciation(4,492,495)(4,416,306)
Net capital assets5,411,2373,117,498
Total noncurrent assets5,411,2373,117,498
Total assets 7,222,5324,996,252
Liabilities:
Current liabilities:
Accounts payable 192,850117,838
Accrued salaries and withholdings payable8,5716,137
Due to other governmental units317,067 -
Interfund payable 259,000 -
Contracts payable 16,83031,100
Accrued interest payable 2,789 -
Unearned revenue - -
Compensated absences payable - current1,6352,313
Bonds payable - current 35,000 -
Total current liabilities833,742 157,388
Noncurrent liabilities:
Compensated absences payable - noncurrent25,61936,236
Bonds payable - noncurrent1,177,824365,000
Total noncurrent liabilities1,203,443 401,236
Total liabilities2,037,185558,624
Net position:
Net investments in capital assets4,763,4133,117,498
Restricted 71,771 -
Unrestricted 350,1631,320,130
Total net position$5,185,347$4,437,628
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
42
Statement 6
Business-Type Activities - Enterprise Funds
Refuse Utility Fund
Storm Sewer Utility
FundLiquor Fund
Total Enterprise
FundsInternal Service Funds
20132013
$1,038,897$1,234,723$592,830$5,240,518$3,148,265
- - 399,254399,254 -
489,754101,517881,810,305 -
2,4001,2002009,5005,600
33,5417351,68135,957 -
- - - 2,764 -
- - - 81,25454,051
- - 2,786,5912,793,90863,091
1,564,592 1,338,175 3,780,644 10,373,460 3,271,007
- 260,6902,006,7142,349,21315,779
- 17,087 - 490,90821,841
56,000 - 3,915,0624,934,5471,978,958
112,893190,653413,2022,133,985417,595
- 1,518,512 - 16,019,696 -
168,893 1,986,942 6,334,978 25,928,349 2,434,173
(118,616)(800,334)(975,502)(10,803,253)(1,038,064)
50,2771,186,6085,359,47615,125,0961,396,109
50,2771,186,6085,359,47615,125,0961,396,109
1,614,8692,524,7839,140,12025,498,5564,667,116
235,03616,850313,130875,70427,678
1,8222,62331,63450,78711,504
- - 97,413414,480 -
- 66,000 - 325,000 -
- 1,799 - 49,729 -
- - 97,17399,962 -
- - - - 7,673
369825,4479,84659,945
- - 170,000205,000 -
237,227 87,354 714,797 2,030,508 106,800
5,7781,28485,338154,255939,147
- 859,1554,260,0006,661,979 -
5,778 860,439 4,345,338 6,816,234 939,147
243,005947,7935,060,1358,846,7421,045,947
50,2771,065,3661,328,73010,325,2841,396,109
- 8,420179,175259,366 -
1,321,587503,2042,572,0806,067,1642,225,060
$1,371,864$1,576,990$4,079,98516,651,814$3,621,169
1,047,024
$17,698,838
The accompanying notes are an integral part of these financial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
Water Utility FundSewer Utility FundRefuse Utility Fund
Operating revenues:
Charges for services$203,139$1,592,145$1,826,226
Charges for sales, net of discounts (Note 1C)2,811,909 - -
Total operating revenues3,015,048 1,592,145 1,826,226
Operating expenses:
Cost of sales, services and goods sold1,216,296923,6211,446,549
Operating expense814,921422,604125,215
Depreciation229,309138,3463,641
Total operating expenses2,260,526 1,484,571 1,575,405
Net income (loss) from operations754,522 107,574 250,821
Nonoperating revenues (expenses):
Investment income:
Interest and dividends13,20015,30011,900
Change in fair value(49,300)(56,800)(44,200)
Intergovernmental1,971 - 68,565
Miscellaneous revenues5,1261,641 -
Miscellaneous expense - - -
Gain on sale of capital assets - 25,000 -
Interest and fiscal charges(62,763)(5,000) -
Total nonoperating revenues (expenses)(91,766)(19,859)36,265
Net income (loss) before transfers662,756 87,715 287,086
Transfers in - - -
Transfers out(127,647)(527,646)(115,544)
Total transfers and capital contributions(127,647)(527,646)(115,544)
Change in net position535,109 (439,931)171,542
Total net position - January 1, as restated4,650,2384,877,5591,200,322
Total net position - December 31$5,185,347 $4,437,628 $1,371,864
Change in net position as reported above
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net position 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
Amounts reported on the statement of activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
Statement 7
Storm Sewer Utility
FundLiquor Fund
Interfund
Eliminations
Total Enterprise
Funds
Internal Service
Funds
20132013
$367,218$ - $ - $3,988,728$997,883
- 8,747,084 - 11,558,993176,961
367,218 8,747,084 0 15,547,721 1,174,844
- 6,577,631 - 10,164,0971,350,693
199,9321,338,379 - 2,901,051 -
83,795151,900 - 606,99187,673
283,727 8,067,910 0 13,672,139 1,438,366
83,491 679,174 0 1,875,582 (263,522)
6,200900 - 47,50028,000
(23,100)(3,400) - (176,800)(103,900)
14,335 - - 84,8716,599
1,707 - - 8,474 -
- (11,040) - (11,040) -
- - - 25,000 -
(24,938)(215,511) - (308,212) -
(25,796)(229,051)0 (330,207)(69,301)
57,695 450,123 0 1,545,375 (332,823)
400,000 - - 400,000290,000
- (132,334) - (903,171) -
400,000 (132,334)0 (503,171)290,000
457,695 317,789 0 1,042,204 (42,823)
1,119,2953,762,196 - 15,609,6103,663,992
$1,576,990 $4,079,985 $0 $16,651,814 $3,621,169
$1,042,204
(5,144)
$1,037,060
Transfers -
Net
($503,171)
215,000
($288,171)
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, 2013
Water Utility FundSewer Utility Fund
Cash flows from operating activities:
Cash received from customers$2,791,900$1,594,519
Cash received from interfund goods and services provided - -
Cash paid to suppliers for goods and services(1,435,452)(1,003,397)
Cash payments to employees for services(363,810)(254,079)
Net cash flows provided by (used in) operating activities992,638 337,043
Cash flows from noncapital financing activities:
Transfers in - -
Transfers out (127,647)(527,646)
Intergovernmental1,971 -
Interfund receivable repaid by (advanced to) other funds59,59822,858
Interfund payable (repaid to) advanced by other funds(140,497) -
Net cash flows provided by (used in) noncapital financing activities(206,575)(504,788)
Cash flows from capital and related financing activities:
Acquisition of capital assets(482,202)(148,707)
Sale of capital assets - 25,000
Bonds issued 987,824365,000
Principal payments - bonds(726,490) -
Interest and fiscal charges - including capitalized interest(74,560)(5,000)
Net cash flows provided by (used in) capital and related financing activities(295,428)236,293
Cash flows from investing activities:
Investment income
Interest and dividends15,10016,700
Change in fair value(49,300)(56,800)
Net cash flows provided by (used in) investing activities(34,200)(40,100)
Net increase (decrease) in cash and cash equivalents456,435 28,448
Total cash and cash equivalents - January 1542,1811,347,004
Total cash and cash equivalents - December 31998,616 1,375,452
(Less) cash and cash equivalents with fiscal agent - December 31 - -
Cash and cash equivalents - December 31$998,616$1,375,452
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
46
Statement 8
Page 1 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
20132013
$1,774,330$359,029$8,745,951$15,265,729$28,361
- - - - 1,741,531
(1,352,865)(81,956)(7,264,578)(11,138,248)(907,512)
(66,773)(98,714)(977,506)(1,760,882)(1,020,710)
354,692 178,359 503,867 2,366,599 (158,330)
- 400,000 - 400,000325,000
(115,544) - (132,334)(903,171)(35,000)
68,56514,335 - 84,8716,599
- - - 82,456 -
(28,507)(20,862) - (189,866) -
(75,486)393,473 (132,334)(525,710)296,599
- (17,086) - (647,995)(133,349)
- - - 25,000 -
- 859,155 - 2,211,979 -
- (171,780)(165,000)(1,063,270) -
- (27,776)(218,901)(326,237) -
0 642,513 (383,901)199,477 (133,349)
11,8005,50290050,00228,999
(44,200)(23,100)(3,400)(176,800)(103,900)
(32,400)(17,598)(2,500)(126,798)(74,901)
246,806 1,196,747 (14,868)1,913,568 (69,981)
792,09137,9761,006,9523,726,2043,218,246
1,038,897 1,234,723 992,084 5,639,772 3,148,265
- - (399,254)(399,254) -
$1,038,897$1,234,723$592,830$5,240,518$3,148,265
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
47
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
Water Utility FundSewer Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$754,522$107,574
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense229,309138,346
Miscellaneous revenues5,1271,641
Changes in assets and liabilities:
(Increase) decrease in accounts receivable(228,275)733
(Increase) decrease in due from other governmental units - -
(Increase) decrease in prepayments - (4,286)
(Increase) decrease in inventory, at cost(3,132) -
Increase (decrease) in accounts payable186,628102,224
Increase (decrease) in accrued
salaries and withholdings payable(651)1,404
Increase (decrease) in contracts payable - retained percentage16,830(11,815)
Increase (decrease) in due to other governmental units33,581 -
Increase (decrease) in deposits payable(3,000) -
Increase (decrease) in compensated absences payable1,6991,222
Increase (decrease) in deferred revenue - -
Total adjustments238,116229,469
Net cash flows from operating activities$992,638$337,043
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
48
Statement 8
Page 2 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
20132013
$250,821$83,491$679,174$1,875,582($251,962)
3,64183,795151,900606,99187,673
- 1,707(11,040)(2,565)(11,560)
(23,389)(9,160)73(260,018)2,819
- (735)(1,206)(1,941) -
- - - (4,286)(5,969)
- - (244,219)(247,351)5,587
122,13816,808(87,212)340,586(19,387)
3556898,27010,0671,856
- 1,799 - 6,814 -
- - 4,38037,961 -
- - - (3,000) -
1,126(35)3,7477,75932,390
- - - - 223
103,87194,868(175,307)491,01793,632
$354,692$178,359$503,867$2,366,599($158,330)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION Statement 9
FIDUCIARY FUNDS
December 31, 2013
Assets:
Cash and investments $9,911
Total assets $9,911
Liabilities:
Accounts payable $5,782
Due to other governmental units 4,129
Total liabilities $9,911
The accompanying notes are an integral part of these financial statements.
50
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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. It is this criterion that results in the HRA and EDA
being reported as a blended component unit.
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 consist of Nonmajor Governmental Funds
using the modified accrual basis of accounting, and as such are included in the other governmental 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 position and the statement of changes
in net position) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not included among program revenues are reported
instead as general revenues.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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. Agency fund financial statements use the accrual basis of
accounting.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of
the end of the current fiscal period. Reimbursement grants are considered available if they are collected
within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability
is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due
within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.
All other revenue items are considered to be measurable and available only when cash is received by the
City.
The City reports the following major governmental funds:
The general fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The 2008A taxable GO housing improvement area bonds fund was established to account for revenues
and expenditures associated with the 2008A series general obligation taxable bonds issued to finance
rehabilitation of the Sullivan Shores town homes development. These bonds will be repaid with
special assessments to the rehabilitated properties.
52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
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.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
water, sewer, refuse, storm sewer and liquor enterprise funds and of the internal service funds are charges
to customers for sales and services. Liquor fund sales are reported net of discounts. No other fund
provides discounts. For 2013, liquor sales discounts were $32,817. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted
resources first, and then use unrestricted resources as 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.
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
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.
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, the City had no
investments in 2a7-like external investment pools. Investment income is accrued at the balance sheet date.
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 property taxes, special assessments and utility bills form liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables, and
have not been reported.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment
of property taxes by property owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible
property taxes are not material and have not been reported.
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 inflows of resources.
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with state statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Property owners
are allowed to (and often do) prepay future installments without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of
sales from tax forfeit properties are allocated first to the County’s costs of administering all tax forfeit
properties. Pursuant to state statutes, a property shall be subject to a tax forfeit sale after three years unless
it is homesteaded, agricultural or seasonal recreational land, in which event the property is subject to such
sale after five years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by the
City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and available to
finance expenditures of the current fiscal period. In practice, current and delinquent special assessments
received by the City are recognized as revenue for the current year. Special assessments that are collected
by the County by December 31 (remitted to the City the following January) are also recognized as revenue
for the current year. All remaining delinquent and deferred special assessments receivable in governmental
funds are offset by deferred inflows of resources.
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.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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
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:
Buildings (and building components)10 - 50 years
Equipment3 - 15 years
Infrastructure20 - 60 years
Capital Assets
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.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 position. Bond premiums and
discounts are immaterial and are expensed in the year of bond issuance.
In the fund financial statements, governmental fund types recognize bond premiums and discounts 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.
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 and
assets for resale.
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. Pursuant to City Council resolution, the City Manager or Finance
Director is authorized to establish assignment of fund balance.
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 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
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
R. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. The City has no items that qualify for reporting
in this category.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow or resources (revenue) until that time. The City has one type of item, which arises only under a
modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds
report unavailable revenue from the following sources: property taxes, special assessments, due from other
governmental units, and loans receivable. In addition, in both the government-wide – governmental
activities statement of net position and the governmental funds balance sheet, the City reports a deferred
inflow for grants receivable in advance of meeting time requirements.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
S. 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 POSITION
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net position – governmental activities as reported in the government-wide
statement of net position. 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 ($18,082,629) difference are as follows:
Accrued interest payable ($308,454)
Other postemployment benefits payable (152,154)
Bonds payable (17,622,021)
Adjustment to fund balance - total governmental
funds - to arrive at net position of governmental activities ($18,082,629)
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
position 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
depreciation exceeded capital assets in the current year.” The details of this ($1,201,851) difference are
as follows:
Total capital outlay in government fund financial statements $1,587,721
Adjustments for non-capital items (68,712)
Adjustments to the carrying value of real estate held for resale (566,900)
Depreciation expense (2,153,960)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.($1,201,851)
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
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
net position however. This amount is the net effect of these differences in the treatment of long-term
debt.” The details of this $996,709 difference are as follows:
Debt issued:
General obligation bonds($563,021)
Principal repayments:
General obligation bonds1,501,730
Revenue bonds58,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$996,709
Another element of that reconciliation states, “Revenue earned in the current year, that is unavailable
in the current year is not reported in the governmental funds. Whereas, this amount is reported in the
statement of activities in the year in which it was earned”. The details of this $139,022 difference are
as follows:
Unavailable revenue - General property taxes:
At December 31, 2012 ($330,845)
At December 31, 2013 269,629
Unavailable revenue - Tax increment taxes:
At December 31, 2012 (11,029)
At December 31, 2013 15,626
Unavailable revenue - Special assessments:
At December 31, 2012 (2,788,639)
At December 31, 2013 2,680,036
Unavailable revenue - Due from other government:
At December 31, 2012 -
At December 31, 2013 304,244
Unavailable revenue - State Aid:
At December 31, 2012 (15,000)
At December 31, 2013 15,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$139,022
T. STATEMENT OF CASH FLOWS
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the
City-wide cash and investment management pool is considered to be cash equivalents.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, 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, 2013 are
as follows:
Carrying
Amount At
Fair Value
Investments$19,995,230
Deposits10,794,873
Cash on hand8,360
(Less) fiduciary fund cash(9,911)
$30,788,552
Cash and investments$30,389,298
Cash and investments with fiscal agent399,254
$30,788,552
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes and treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rated “A” or
better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
(5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc., or Standard & Poor’s Corporation; and
(6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Deposits as of December 31, 2013 are as follows:
Carrying
Bank Amount At
BalancesFair Value
Demand deposits$1,734,579$1,629,851
Time deposits9,152,5599,165,022
Total$10,887,138$10,794,873
B. INVESTMENTS
Minnesota Statutes Section 118A authorizes the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities,
or organizations created by an act of congress, excluding mortgage-backed securities defined as high
risk.
b) Shares of investment companies described in Section 118A.05. This includes primarily money market
funds rated in the top two rating categories by a national rating service, and companies whose only
investments are described in items a) through h) of this note.
c) Obligations of the State of Minnesota or any of its municipalities as follows:
(1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
(2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
(3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the
State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a
bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7, 469.178, subdivision 5 or 475.61, subdivision 6.
h) Guaranteed investment contracts with certain U.S. financial institutions carrying only high quality
unsecured debt, if the City has withdrawal rights upon a decline in debt quality.
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Investments as of December 31, 2013 are as follows:
Weighted
Average CarryingPercentage
MaturitiesAmount Atof Fair Value
In YearsFair ValuePer Issuer
Notes issued by U.S. government agencies:
Federal Home Loan Bank9.8$11,458,58757.3%
Federal Home Loan Mortgage Corporation10.11,598,7068.0%
Federal Farm Credit Bank11.6284,3491.4%
Federal National Mortgage Association13.63,430,47517.2%
Money market mutual funds:
Evergreen U.S. Government FundN/A1,128,9245.6%
Western Asset Government FundN/A800,8704.0%
Other issuersN/A1,293,3196.5%
Total investments19,995,230$ 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 requires the City's investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be reasonably
anticipated.
b) Credit risk - investments - 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, 2013, the
City's investments in the Notes issued by U.S. government agencies were all rated AA+ by Standard &
Poor's, and Aaa by Moody's Investors Service. The money market funds in which the City held shares
at December 31, 2013, 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 AA+ by
Standard and Poors and Aaa by Moody’s Investor Service.
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, 2013.
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 December 31, 2013, 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.
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2013 are as follows:
Nonmajor FundsTotal
2008A TaxableCapitalG.O. Imp
GO Housing ImpImprovementRev Bonds
Area Bonds FundPIR Fund2013A
Special assessments receivable$706,935$1,443,032$80,255$2,230,222
Total$706,935$1,443,032$80,255$2,230,222
Major Funds
Note 4 UNAVAILABLE REVENUES
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds were as follows:
PropertyTaxSpecial Due from
TaxesIncrementAssessmentsOther Govt'sTotal
Major Funds:
General Fund$261,245$ - $ - $ - $261,245
2008A Taxable GO Housing Improvement Area Bonds Fund - - 764,094 - 764,094
Municipal State Aid Street Fund - - - 15,00015,000
Capital Improvements - PIR Funds - - 1,835,688 - 1,835,688
Nonmajor Governmental Funds:8,38315,62580,255304,244408,507
Total unavailable revenue$269,628$15,625$2,680,037$319,244$3,284,534
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 is as follows:
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,325,624$ - $ - $5,325,624
Construction in progress 888,014 918,440 (916,062) 890,392
Total capital assets not being depreciated 6,213,637 918,440 (916,062) 6,216,016
Capital assets - being depreciated:
Buildings 28,126,405 359,664 - 28,486,069
Equipment 8,307,494 164,652 (149,393) 8,322,753
Infrastructure 29,632,619 558,764 - 30,191,383
Total capital assets being depreciated 66,066,518 1,083,080 (149,393) 67,000,205
Less accumulated depreciation for:
Buildings 11,366,977 726,008 - 12,092,985
Equipment 5,598,815 473,992 (144,293) 5,928,514
Infrastructure 13,186,171 1,022,039 - 14,208,210
Total accumulated depreciation 30,151,963 2,222,039 (144,293) 32,229,709
Capital assets being depreciated - net 35,914,555 (1,138,959) (5,100) 34,770,496
Governmental activities capital assets - net 42,128,192 (220,519) (921,162) 40,986,511
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 259,930 534,178 (303,200) 490,908
Total capital assets not being depreciated 2,609,143 534,178 (303,200) 2,840,121
Capital assets - being depreciated:
Buildings 4,631,314 303,232 - 4,934,546
Equipment 2,215,507 113,780 (126,000) 2,203,287
Infrastructure 16,019,696 - - 16,019,696
Total capital assets being depreciated 22,866,517 417,012 (126,000) 23,157,529
Less accumulated depreciation for:
Buildings 1,233,985 137,036 - 1,371,021
Equipment 1,615,051 125,268 (126,000) 1,614,319
Infrastructure 7,499,900 364,278 - 7,864,178
Total accumulated depreciation 10,348,936 626,582 (126,000) 10,849,518
Capital assets being depreciated - net 12,517,581 (209,570) - 12,308,011
Business-type activities capital assets - net 15,126,724 324,608 (303,200) 15,148,132
Total capital assets - net $57,254,916$104,089($1,224,362)$56,134,643
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Depreciation expense was charged to functions/programs of the primary government - governmental activities as
follows:
Governmental activities:
General government$98,951
Public safety 513,958
Public works 1,132,944
Culture and recreation297,179
Community development110,927
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Central garage 68,080
Total depreciation expense - capital assets held by governmental activities$2,222,039
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water $229,309
Sewer 138,346
Refuse 3,641
Storm sewer 83,794
Liquor 151,900
Depreciation on capital assets held by business-type internal service activities
is charged to each function based on use:
Information systems19,592
Total depreciation expense - capital assets held by business-type activities$626,582
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2013 are as follows:
Fund ReceivablePayable
Major Funds:
General Fund $9,733$ -
Municipal State Aid Street - 7,289
Capital Equipment Replacement General Gov't 325,000 -
Capital Improvement PIR Fund 80,255 -
Capital Improvement Development 340,840 -
Water 2,764259,000
Sewer - 66,000
Nonmajor funds 185,708612,011
Total $944,300$944,300
$23,708 of these interfund balances are for services provided in 2013 and reimbursed in 2014. Also included in
these balances is an interfund loan from the Capital Equipment Replacement – General Government Fund to the
Water Fund for $259,000, and to the Storm Sewer Fund for $66,000; to finance utility infrastructure improvements.
All other interfund balances at December 31, 2013, reflect lending arrangements to cover deficit cash balances at
yearend. Substantially all such other amounts are expected to be repaid within one year.
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
INTERFUND TRANSFERS
Interfund transfers during the year ended December 31, 2013 are as follows:
Enterprise
CapitalCapital EqpCapital MunicipalStormOther
GeneralImprvmts GenReplacementImp PIRState AidSewerGovtlInternal
FundGovt BldgGen GovtFundStreet FundFundsFundsServiceTotal
Transfers out:
Major funds:
Governmental:
General$ - $22,500$84,000$27,677$1,165$ - $275,000$45,000$455,342
Capital Imprvmts PIR - - - - - - 224,381 - 224,381
Enterprise:
Water82,647 - - - - - - 45,000127,647
Sewer82,646 - - - - 400,000 - 45,000527,646
Refuse70,544 - - - - - - 45,000115,544
Liquor87,334 - - - - - - 45,000132,334
Nonmajor funds:
Other governmental funds59,329 - - - - - 636,73665,000761,065
Internal service funds - - - - - - - 35,00035,000
Total$382,500$22,500$84,000$27,677$1,165$400,000$1,136,117$325,000$2,378,959
Transfers In
Nonmajor Funds
Governmental
Major Funds
Governmental
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 7 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, 2013, 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$565,000
GO Public safety center series 2008BNone10,000,0004.30-4.55%8/6/20082/1/20389,405,000
GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/2038 2,715,000
Taxable GO tax increment bonds series 2009BTax increment580,0003.40-5.10%7/1/20092/1/2021525,000
GO Improvement series 2006ASpecial assessments2,759,5504.00%12/7/20062/1/2020 -
Taxable GO housing improvement area series 2008ASpecial assessments975,0005.00-6.05%7/16/2008 2/1/2024 790,000
GO Public Facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019380,000
GO Improvement series 2013ASpecial assessments235,0000.40-2.50%11/21/20132/1/2024235,000
GO Improvement series 2013A - RefundingSpecial assessments328,0210.40-2.50%11/21/20132/1/2020328,021
Business-type activities:
GO Improvement series 2006AUtility revenues645,4504.00%12/7/20062/1/2017 -
GO Utility revenue series 2006AUtility revenues 670,0004.00%12/7/20062/1/2017 -
GO Public Facilities series 2009AUtility revenues 325,0002.00-4.75%7/1/20092/1/2019225,000
GO Utility revenue series 2013AUtility revenues1,685,0000.40-2.50%11/21/2013 2/1/2024 1,685,000
GO Improvement series 2013A - RefundingUtility revenues291,9790.40-2.50%11/21/2013 2/1/2024 291,979
GO Utility revenue series 2013A - RefundingUtility revenues 235,0000.40-2.50%11/21/20132/1/2024235,000
Total general obligation bonds outstanding $17,380,000
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
As of December 31, 2013, the annual debt service requirements to maturity for general obligation bonds are as
follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2014$600,000$627,121$35,000$29,457
2015723,716604,928316,28437,082
2016761,670578,871308,33034,799
2017787,635550,816332,36531,388
2018745,000520,658225,00027,450
2019605,000492,119230,00023,502
2020595,000466,266190,00019,758
2021605,000439,826190,00016,242
2022540,000414,403200,00012,143
2023565,000389,923205,0007,534
2024590,000364,115205,0002,562
2025400,000342,186 - -
2026-20302,320,0001,424,506 - -
2031-20352,955,000840,506 - -
2036-20382,150,000151,274 - -
Total$14,943,021$8,207,518$2,436,979$241,917
Governmental ActivitiesBusiness-Type Activities
CURRENT REFUNDING
On November 21, 2013, the City issued the $2,775,000 General Obligation Improvement and Utility Revenue
Bonds, Series 2013A. This issue was a combination refunding, new improvement and utility revenue bond.
$840,000 of the proceeds plus an additional $502,667 of existing cash reserves went towards the redemption of the
2006A GO Improvement and Utility Revenue bonds on December 1, 2013.
The City refunded the 2006A General Obligations Improvement and Utility Revenue bonds to reduce interest rates
from 4.0% to 0.4% - 2.5% yielding a net present value benefit of $51,291.
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.
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Revenue bonds outstanding at December 31, 2013 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$2,679,000
Business-type activities:
Public facility lease revenue series 2007BLiquor revenues5,040,0004.50-5.00%9/19/20072/1/20304,430,000
Total revenue bonds outstanding $7,109,000
As of December 31, 2013, the annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2014$62,000$140,488$170,000$209,030
201568,000137,238180,000201,155
201674,000133,688185,000192,942
201780,000129,838195,000184,393
201887,000125,576205,000175,239
201994,000120,870215,000165,474
2020102,000115,774230,000155,128
2021109,000110,288240,000144,020
2022118,000104,386250,000132,260
2023127,00097,905265,000119,900
2024136,00090,837280,000106,680
2025146,00083,259295,00092,592
2026-2030900,000282,2941,720,000223,105
2031-2032576,00034,722 - -
Total$2,679,000$1,707,163$4,430,000$2,101,918
Governmental ActivitiesBusiness-Type Activities
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013, and for the the year then ended, is as follows:
Related BondAs PercentageRelated Bond
PledgedActivityPrincipalof RevenuePrincipalPledged
RevenueFinancedand InterestPledgedand InterestRevenue
Project-specificStreet
special assessmentsimprovements$1,018,27295%$1,045,368$225,481
Project-specificPrivate
special assessmentsredevelopment1,073,65895%96,995104,013
Project-specificPublic/Private
tax incrementredevelopment5,019,42383%281,538235,116
Water and storm-Utility system
sewer net revenuesimprovements2,678,89760%804,2681,339,092
Annual appropriationMunicipal store
of liquor net revenuesconstruction6,531,920100%381,568385,168
Total RemainingCurrent Year
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2013 is as follows:
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes$12,308,431$ - ($410,000)$11,898,431$430,000
General obligation bonds with other pledged revenues 3,573,299563,021(1,091,730)3,044,590170,000
Revenue bonds 2,737,000 - (58,000)2,679,00062,000
Total bonds payable 18,618,730563,021(1,559,730)17,622,021662,000
Compensated absences 950,937594,703(569,497)976,14358,568
Postemployment benefits other than pensions 105,49276,467(29,805)152,154 -
Total governmental activity long-term liabilities$19,675,159$1,234,191($2,159,032)$18,750,318$720,568
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues$1,123,270$2,211,979($898,270)$2,436,979$35,000
Revenue bonds 4,595,000 - (165,000)4,430,000170,000
Total bonds payable 5,718,2702,211,979(1,063,270)6,866,979205,000
Compensated absences 172,107139,209(124,266)187,05011,223
Total business-type activity long-term liabilities $5,890,377$2,351,188($1,187,536)$7,054,029$216,223
For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an
internal service fund; other postemployment benefit obligations are generally liquidated by the general fund and
other nonmajor funds.
Note 8 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, 2013, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $19,819,670.
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 9 FUND EQUITY
A. CLASSIFICATIONS
At December 31, 2013, the City has various fund equities through legal restrictions and City Council
authorizations. A summary of such classifications are as follows:
2008A TaxMunicipalCapital ImpCap Eqp Capital
GeneralGO Housing State AidGeneral Replacement ImprovementNonmajor
FundImp BondStreetGovt BldgGen GovtPIRDevelopmentGov'tTotal
2013 Fund Balance:
Nonspendable:
Prepaid items $92,638$ - $ - $ - $ - $ - $ - $3,046$95,684
Interfund loans - - - - 325,000 - - - 325,000
Land Held for Resale - - - - - 45,600164,8441,211,6241,422,068
Total nonspendable $92,638$0$0 $0$325,000$45,600$164,844$1,214,670$1,842,752
Restricted for:
Tax Increment $ - $ - $ - $ - $ - $ - $ - 1,400,497$ 1,400,497$
Debt service - 188,663 - - - - - 812,1681,000,831
Police & Fire purposes - - - - - - - 80,59880,598
Culture and Recreation purposes - - - - - - - 482,655482,655
Housing and Redevelopment - - - - - - - 915,125915,125
Total restricted $0$188,663$0 $0$0$0$0$3,691,043$3,879,706
Committed for:
Cable TV $ - $ - $ - $ - $ - $ - $ - $578,463$578,463
Culture and Recreation - - - - - - - 314,903314,903
Housing and Redevelopment - - - - - - 1,843,0131,821,6433,664,656
Capital Improvement - - 267,3091,074,093 - 988,908 - 1,267,3753,597,685
Capital Equipment - - - - 3,947,136 - - 126,6384,073,774
Downtown Parking Maintenance50,237 - - - - - - - 50,237
Total committed $50,237$0$267,309$1,074,093$3,947,136$988,908$1,843,013$4,109,022$12,279,718
Unassigned:$6,254,402$ - $ - $ - $ - $ - $ - ($39,344)$6,215,058
B. DEFICIT FUND BALANCE
The following funds had fund deficits as of December 31, 2013. The City will finance these deficits
through internal sources in future years:
Nonmajor Funds:
Debt Service Funds:
GO Improvement/Revenue Bonds 2013A($39,344)
($39,344)
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
C. MINIMUM FUND BALANCE POLICY
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, 2013, both funds have met this goal.
Note 10 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.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained by writing to PERA, 60
Empire Drive #200, St. Paul, Minnesota, 55103-1855 or by calling (651) 296-7460 or 1-800-652-9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. GERF Coordinated Plan members are required to contribute
6.25% of their annual covered salary in 2013. The PEPFF members are required to contribute 9.6% of their
annual covered salary in 2013. 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. Employer
and employee contribution rates for PEPFF will increase in 2014; 10.2% for employees and 15.3% for
employer. 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
2011$364,288$391,573
2012355,330406,131
2013354,692404,623
Note 11 DEFINED CONTRIBUTION PLAN
A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION
The Columbia Heights Fire Department Relief Association is the administrator of a single-employer pension
plan for the paid on-call members of the City of Columbia Heights Fire Department.
Through October 26, 1997, the association operated as a defined benefit plan. Effective October 27, 1997, the
Association amended its by-laws and converted to a defined contribution plan. The pension plan was fully
funded at the time of conversion.
Benefits and contribution requirements are established by the Association’s by-laws and can be amended by the
Association’s Board of Directors with approval from the City. All provisions are within limitations established
by Minnesota statutes.
Type of Benefit. The exclusive pension provided by the Association is a "Defined Contribution Lump Sum
Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4.
Contributions Required and Contributions Made. No contributions are required from the plan members or the
City. The plan is funded through state aid, investment income and discretionary contributions from the City.
For 2013, state aid was contributed to the plan. This state aid revenue and the related contribution
expense/expenditure of $93,806 are recognized in the accompanying financial statements for the year ended
December 31, 2013.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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
2013, plan members contributed $1,860 and the City contributed $1,860.
Note 12 POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
A. PLAN DESCRIPTION
The City administers a single-employer defined benefit health care plan (the plan.) By state statute, the plan
provides an implicit rate subsidy for retired participants by allowing retirees under age 65 to purchase health
insurance at the premium rate available to active employees. In addition, by state statute, the plan provides
payment of insurance premiums, up to age 65, for public safety employees that retire with a qualifying
disability, equal to the current employer-paid portion of premiums for an active employee. The employer-paid
portion of premiums for an active employee is determined periodically by negotiation between the City and
collective bargaining units of city employees. The plan does not issue a publicly available financial report.
B. FUNDING POLICY
Participants under the implicit rate subsidy provision are required to contribute 100% of the stated premium
billed by the insurer. For 2013, 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.
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013
Annual required contribution $78,606
Interest on net OPEB obligation3,165
Adjustment to annual required contribution(5,304)
Annual OPEB cost76,467
Contributions made by City(29,805)
Increase in net OPEB obligation46,662
Net OPEB obligation-beginning of year105,492
Net OPEB obligation-end of year$152,154
Comparative OPEB information for the curent and three prior years includes the following:
Percentage of
Year EndedAnnual OPEBAnnual OPEBNet OPEB
December 31CostCost ContributedObligation
201026,15260%30,661
201178,01659%58,761
201277,34040%105,492
201376,46739%152,154
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2011, the most recent actuarial valuation date, the City’s unfunded actuarial accrued liability
(UAAL) was $775,238. 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.
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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 2004-2010
Mortality – Life expectancies were based on the 2000 Retired Pensioners Mortality Rates for Male and
Female
Note 13 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is
subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City is not subject to a deductible.
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.
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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
PENDING SALE
In 2012, the Housing and Redevelopment Authority entered into an agreement to sell its 150 unit senior
apartment facility (Parkview Villa North and South), to Aeon, a regional non-profit housing entity. The sale
is contingent on the U.S. Department of Housing and Urban Development (HUD) allowing both the
dissolution of the Parkview Villa North portion of the facility as a Public Housing Agency project, and its
conversion to a project-based Section 8 facility. As of December 31, 2013, this decision is still under
review by HUD.
CONSTRUCTION
The City has entered into several contractual commitments for construction projects that are in process at
yearend. At December 31, 2013, the City’s obligation for such projects was approximately $466,265.
TAX INCREMENT FINANCING AGREEMENTS
Additionally, under the terms of various tax increment financing agreements, the City has commitments to
reimburse developers for certain qualifying redevelopment costs plus interest. These future
reimbursements are limited, however, to the future tax increment received from certain tax increment
districts. The amount to be paid under these agreements is not determinable at this time.
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
The following table summarizes the current year activity and contingent portions of these commitments:
TIFDistrict ExpendituresInterestExpendituresInterest
District EndsDeveloperReimbursedPaid AvailableAvailable
R82027Crestview ONDC1$ - $43,224$732,801$380,503
R82027Col Hts Tran Block - 16,415 175,089 48,239
K22019Barnick 1,193 - 40,672 -
K22019Miske 24,1195,219 24,968 -
T62031BNC Bank - 73,802 6,650,000 2,361,027
Current Year Contingent on Future Tax Increment
Note 14 RECENTLY ISSUED ACCOUNTING STANDARDS
For the year ended December 31, 2013, the City implemented the following statements issued by the Governmental
Accounting Standards Board (GASB):
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. This statement had no material effect on the accompanying financial statements.
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. See note 15.
Statement No. 66 Technical Corrections – 2012. The provisions of this Statement are effective for
financial statements for periods beginning after December 15, 2012. This statement had no material effect
on the accompanying financial statements.
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. 67 Financial Reporting for Pension – an amendment of GASB statement No. 25. The
provisions of this Statement are effective for financial statements for periods beginning after June 15, 2013.
Statement No. 68 Accounting and Financial Reporting for Pension – an amendment of GASB statement
No. 27. The provisions of this Statement are effective for financial statements for periods beginning after
June 15, 2014.
Statement No. 69 Government Combinations and Disposal of Government Operations. The provisions of
this Statement are effective for financial statements for periods beginning after December 15, 2013.
Statement No. 70 Financial Reporting for Nonexchange Financial Guarantees. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2013.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Statement No. 71 Pension Translation for Contributions Made Subsequent to the Measurement Date – an
amendment of GASB Statement No.68. The provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2014.
The effect these standards may have on future financial statements is not determinable at this time. However,
Statement No. 68 (2015) will require for the first time the City to record a liability for its proportionate share of the
net pension liability of cost-sharing multi-employer pension plans (i.e., PERA).
Note 15 CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2013, the City implemented GASB Statement No. 65. GASB Statement No. 65,
Items Previously Reported as Assets and Liabilities, resulted in accounts previously presented as liabilities being
reclassified as deferred inflows of resources. In addition, GASB 65 results in the restatement of beginning net
position to reflect a change in accounting for bond issuance costs. Prior to GASB 65, bond issuance costs were
capitalized and amortized over the life of the bond. GASB 65 requires the expensing of issuance costs (excluding
bond insurance) in the year of issuance.
The restatement of net position due to the elimination of issuance costs is summarized as follows:
Business-Type
Activities
Liquor Fund
January 1, 2012
Net position - as previously reported$3,476,484
Elimination of issuance costs(65,189)
Net position - as restated$3,411,295
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84
REQUIRED SUPPLEMENTARY INFORMATION
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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, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted AmountsFinal Budget2012
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$7,973,404$7,973,404$8,142,980$169,576$7,626,258
Licenses and permits168,600168,600192,36223,762200,954
Intergovernmental1,372,0691,378,8991,420,79641,8971,495,889
Charges for services554,000565,287579,45514,168574,708
Fines and forfeitures141,000141,000129,132(11,868)128,543
Investment income:
Interest and dividends85,00085,00070,994(14,006)71,927
Change in fair value - - (262,438)(262,438)4,761
Other revenues8,0008,0005,146(2,854)6,485
Total revenues10,302,073 10,320,190 10,278,427 (41,763)10,109,525
Expenditures:
General government:
Council146,105146,711140,1266,585140,750
Manager416,072423,901409,33814,563412,427
Clerk71,92074,05047,72526,325100,800
Legal186,657186,657166,43820,219177,069
Finance764,700761,232737,28023,952694,569
Assessing131,569131,691122,3959,296118,117
General government buildings201,700183,514109,77173,743132,279
Contingencies181,19451,24730,54820,699 -
Capital outlay5,0005,00013,868(8,868) -
Total general government2,104,917 1,964,003 1,777,489 186,514 1,776,011
Public safety:
Police3,809,3563,881,4263,699,070182,3563,711,051
Fire1,350,4221,382,1701,410,766(28,596)1,354,114
Total public safety5,159,778 5,263,596 5,109,836 153,760 5,065,165
Public works:
Engineering348,513353,947263,18490,763279,981
Maintenance1,097,2301,104,366997,135107,2311,009,765
Sanitation136,822137,845120,01117,834128,378
Capital outlay - - 117,946(117,946)195,687
Total public works1,582,565 1,596,158 1,498,276 97,882 1,613,811
Other Departments:
Parks and recreation1,571,8291,587,0351,459,848127,1871,402,856
Capital outlay27,31727,31739,768(12,451)15,934
Total recreation1,599,146 1,614,352 1,499,616 114,736 1,418,790
Total expenditures10,446,406 10,438,109 9,885,217 552,892 9,873,777
Revenues over (under) expenditures(144,333)(117,919)393,210511,129235,748
2013
86
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, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted AmountsFinal Budget2012
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Other financing sources (uses):
Transfers in$382,500$382,500$382,500$ - $358,076
Transfers out(217,536)(426,536)(455,342)(28,806)(385,970)
Total other financing sources (uses)164,964 (44,036)(72,842)(28,806)(27,894)
Net change in fund balance$20,631 ($161,955)320,368$482,323 207,854
Fund balance - January 16,076,9095,869,055
Fund balance - December 31$6,397,277 $6,076,909
2013
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN
For The Year Ended December 31, 2013
Actuarial
Accrued UAAL as a
ActuarialActuarialLiability (AAL)Unfunded Percentage
ValuationValue of - ProjectedAAL Funded Coveredof Covered
Date AssetsUnit Credit(UAAL)Ratio Payroll Payroll
1/1/2008$ - $257,138 $257,1380%N/A N/A
1/1/2011 - 775,238 775,2380%N/A N/A
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2013
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
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90
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
91
NONMAJOR GOVERNMENTAL FUNDS
92
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.)
93
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 12
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
Total
Nonmajor
Special DebtCapital Governmental
AssetsRevenueServiceProjectFunds
Cash and investments$4,120,614$2,284,735$1,386,516$7,791,865
Receivables:
Accounts62,742150 - 62,892
Special assessments - 80,255 - 80,255
Taxes10,79225,063 - 35,855
Interest7,4004,2002,90014,500
Due from other governmental units308,390 - 4,864313,254
Interfund receivable185,708 - - 185,708
Prepayments3,046 - - 3,046
Real estate held for resale707,429644,068357,4781,708,975
Total assets$5,406,121$3,038,471$1,751,758$10,196,350
Liabilities and Fund Balance
Liabilities:
Accounts payable$22,232$24,600$267$47,099
Accrued salaries and withholdings payable24,160 - - 24,160
Due to other governmental units40,2709,649 - 49,919
Interfund payable521,05990,952 - 612,011
Unearned revenue52,929 - - 52,929
Deposits26,333 - - 26,333
Total liabilities686,983125,201267812,451
Deferred inflows of resources:
Unavailable revenue312,62795,881 - 408,508
Total deferred inflows of resources312,62795,8810408,508
Fund balance:
Nonspendable213,124644,068357,4781,214,670
Restricted1,478,3782,212,665 - 3,691,043
Committed2,715,009 - 1,394,0134,109,022
Unassigned - (39,344) - (39,344)
Total fund balance4,406,5112,817,3891,751,4918,975,391
Total liabilities, deferred inflows
of resources, and fund balance$5,406,121$3,038,471$1,751,758$10,196,350
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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, 2013
Total
Nonmajor
Special Debt CapitalGovernmental
Revenue Service Project Funds
Revenues:
Taxes $1,046,395 $699,220$ - $1,745,615
Tax increment collections - 527,928 - 527,928
Licenses and permits 219,846 - - 219,846
Intergovernmental 805,731 - (100)805,631
Charges for services 952,740 - - 952,740
Fines and forfeitures 18,891 - - 18,891
Investment income:
Interest and dividends 41,170 20,400 14,300 75,870
Change in fair value (139,400)(76,100)(53,100)(268,600)
Other revenues 37,203 - 43,503 80,706
Total revenues 2,982,576 1,171,448 4,603 4,158,627
Expenditures:
Current:
General government 25,104 - - 25,104
Public safety 32,939 - 15,282 48,221
Public works - - 67,079 67,079
Culture and recreation 731,949 - 26,785758,734
Community development 1,153,493 42,944 - 1,196,437
Capital outlay:
Public works - - 3,858 3,858
Community development 411,826 135,062 17,613564,501
Debt service:
Principal retirement - 1,509,730 - 1,509,730
Interest and fiscal charges - 786,138 - 786,138
Developer incentives - 163,972 - 163,972
Total expenditures 2,355,311 2,637,846 130,617 5,123,774
Revenues over (under) expenditures 627,265 (1,466,398)(126,014)(965,147)
Other financing sources (uses):
Transfers in 3,5821,032,535100,0001,136,117
Transfers out (127,911)(633,154) - (761,065)
Bonds issued - 328,021 - 328,021
Sale of capital assets - 35,054 - 35,054
Total other financing sources (uses)(124,329)762,456 100,000 738,127
Net change in fund balance 502,936 (703,942)(26,014)(227,020)
Fund balance - January 1 3,903,5753,521,3311,777,5059,202,411
Fund balance - December 31 $4,406,511$2,817,389$1,751,491$8,975,391
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96
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 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.
97
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98
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.
99
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2013
Cable
Television
Fund 225
Police
Forfeiture
Fund 265
Police Grants
Fund 272
Library Fund
240
After-School
Programs Fund
261
Assets
Cash and investments$530,299$48,106$ - $344,474$190,340
Receivables:
Accounts46,864 - - - -
Taxes - - - - -
Interest1,300 - - 900400
Due from other governmental units - - - - 4,146
Interfund receivable - - - - -
Prepayments - - - 3,046 -
Real estate held for resale - - - - -
Total assets$578,463 $48,106 $0 $348,420 $194,886
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $42$ - $11,693$2,198
Accrued salaries and withholdings payable - - - 13,017594
Due to other governmental units - - - 3,161119
Interfund payable - - - - -
Unearned revenue - 14,313 - - -
Deposits - - - - -
Total liabilities014,355027,8712,911
Deferred inflows of resources:
Unavailable revenue - - - - -
Total deferred inflows of resources00000
Fund balance:
Nonspendable - - - 3,046 -
Restricted - 33,751 - - 191,975
Committed578,463 - - 317,503 -
Total fund balance 578,46333,7510320,549191,975
Total liabilities, deferred inflows
of resources, and fund balance$578,463 $48,106 $0 $348,420 $194,886
100
Statement 14
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
$131,144$202,983$558,522$227,093$ - $85,640$1,802,013$4,120,614
- - - 300 - 2,17013,40862,742
- - - - - 10,792 - 10,792
3005001,300500 - 4001,8007,400
- - - - 304,244 - - 308,390
- - - - - 185,708 - 185,708
- - - - - - - 3,046
- - - - 707,429 - - 707,429
$131,444 $203,483 $559,822 $227,893 $1,011,673 $284,710 $1,817,221 $5,406,121
$ - $ - $ - $91$ - $174$8,034$22,232
- - - 4,400 - 6,149 - 24,160
- - - 439 - - 36,55140,270
- - - - 497,351 - 23,708521,059
- - 33,456 - - - 5,16052,929
- - - - - - 26,33326,333
0033,4564,930497,3516,32399,786686,983
- - - - 304,2448,383 - 312,627
0000304,2448,3830312,627
- - - - 210,078 - - 213,124
131,444203,483 - - - - 917,7251,478,378
- - 526,366222,963 - 270,004799,7102,715,009
131,444203,483526,366222,963210,078270,0041,717,4354,406,511
$131,444 $203,483 $559,822 $227,893 $1,011,673 $284,710 $1,817,221 $5,406,121
101
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2013
3
Cable
Television
Fund 225
Police
Forfeiture
Fund 265
Police Grants
Fund 272
Library Fund
240
After-School
Programs
Fund 261
Revenues:
Taxes$ - $ - $ - $777,000$ -
Licenses and permits - - - - -
Intergovernmental - - 27,200 - 56,069
Fees/program revenues186,209 - - 9,34519,913
Rents - - - - -
Fines and forfeitures - 4,500 - 14,391 -
Investment income:
Interest and dividends6,400 - - 4,6002,200
Change in fair value(23,800) - - (17,200)(8,100)
Other revenues:
Contributions - - - - -
Miscellaneous - - 2,411145 -
Total revenues168,8094,50029,611788,28170,082
Expenditures:
Personal services1,753 - - 507,07730,387
Supplies1102,528 - 95,1767,186
Other services and charges18,782 - 30,41159,35919,149
Capital outlay - - - - -
Total expenditures20,6452,52830,411661,61256,722
Revenues over (under) expenditures148,1641,972(800)126,66913,360
Other financing sources (uses):
Transfers in - - 3,582 - -
Transfers out(66,881) - - (31,752) -
Total other financing sources (uses)(66,881)03,582(31,752)0
Net change in fund balance81,2831,9722,78294,91713,360
Fund balance - January 1497,18031,779(2,782)225,632178,615
Fund balance - December 31$578,463 $33,751 $0 $320,549 $191,975
102
Statement 15
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
$ - $ - $ - $ - $ - $269,395$ - $1,046,395
- - - 219,846 - - - 219,846
- - - - 583,384 - 139,078805,731
- - 19,380 - - 60 - 234,907
- - 79,709 - - - 638,124717,833
- - - - - - - 18,891
1,6002,7006,5002,400 - 2,50212,26841,170
(6,100)(9,800)(24,200)(8,800) - (7,600)(33,800)(139,400)
21,1651,423 - - - - - 22,588
- - 1,500150 - - 10,40914,615
16,665(5,677)82,889213,596583,384264,357766,0792,982,576
- - - 155,483 - 201,80537,000933,505
12,1902,424 - 1,704 - 77035,225157,313
1,4252,035 - 13,488100,00020,052587,966852,667
- - - - 411,826 - - 411,826
13,6154,4590170,675511,826222,627660,1912,355,311
3,050(10,136)82,88942,92171,55841,730105,888627,265
- - - - - - - 3,582
- (3,582) - (12,848) - (12,848) - (127,911)
0(3,582)0(12,848)0(12,848)0(124,329)
3,050(13,718)82,88930,07371,55828,882105,888502,936
128,394217,201443,477192,890138,520241,1221,611,5473,903,575
$131,444 $203,483 $526,366 $222,963 $210,078 $270,004 $1,717,435 $4,406,511
103
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 16
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted AmountsFinal Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Franchise fees$176,600$176,600$186,209$9,609$181,597
Investment income:
Interest and dividends - - 6,4006,4005,100
Change in fair value - - (23,800)(23,800)300
Other revenues:
Miscellaneous - - - - 115
Total revenues176,600176,600168,809(7,791)187,112
Expenditures:
Personal services5,4235,4231,7533,6702,152
Supplies100100110(10)187
Other services and charges30,90830,90818,78212,12615,317
Total expenditures36,43136,43120,64515,78617,656
Revenues over expenditures140,169140,169148,1647,995169,456
Other financing sources (uses):
Transfers out(66,881)(66,881)(66,881) - (66,881)
Net change in fund balance$73,288 $73,288 81,283$7,995 102,575
Fund balance - January 1497,180394,605
Fund balance - December 31$578,463 $497,180
2013
104
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, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Forfeitures $4,500$18,399
Expenditures:
Supplies 2,5281,228
Total expenditures 2,5281,228
Revenues over expenditures1,972 17,171
Fund balance - January 131,77914,608
Fund balance - December 31$33,751 $31,779
105
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE GRANTS FUND 272 Statement 18
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Intergovernmental$27,200$ -
Other 2,411 -
Total revenues 29,611 0
Expenditures:
Other services and charges30,411 -
Total expenditures30,4110
Revenues over (under) expenditures(800)0
Other financing sources (uses):
Transfers out 3,582 -
Net change in fund balance2,782 0
Fund balance (deficit) - January 1(2,782)(2,782)
Fund balance (deficit) - December 31$0($2,782)
106
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted AmountsFinal Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$777,000$777,000$777,000$ - $765,195
Charges for services8,4018,4019,3459448,868
Fines16,00016,00014,391(1,609)14,940
Investment income:
Interest and dividends3,5003,5004,6001,1003,300
Change in fair value - - (17,200)(17,200)200
Other revenues:
Miscellaneous - - 145145 -
Total revenues804,901 804,901 788,281 (16,620)792,503
Expenditures:
Personal services586,525586,525507,07779,448529,819
Supplies105,630105,63095,17610,45490,387
Other services and charges80,99480,99459,35921,63565,093
Total expenditures773,149 773,149 661,612 111,537 685,299
Revenues over expenditures31,752 31,752 126,669 94,917 107,204
Other financing sources (uses):
Transfers out(31,752)(31,752)(31,752) - (31,718)
Net change in fund balance$0 $0 94,917 $94,917 75,486
Fund balance - January 1225,632150,146
Fund balance - December 31$320,549 $225,632
2013
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - AFTER SCHOOL PROGRAMS FUND 261 Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Intergovernmental $56,069 $57,337
Program revenue 19,913 19,468
Investment income:
Interest and dividends 2,200 2,000
Change in fair value (8,100)100
Total revenues 70,082 78,905
Expenditures:
Personal services 30,387 31,027
Supplies 7,186 11,176
Other services and charges 19,149 18,139
Total expenditures 56,722 60,342
Revenues over expenditures 13,360 18,563
Fund balance - January 1 178,615 160,052
Fund balance - December 31 $191,975 $178,615
108
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS FUND 881 Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Investment income:
Program revenue $ - $ -
Interest and dividends 1,600 1,600
Change in fair value (6,100)100
Other revenue:
Contributions 21,165 19,488
Total revenues 16,665 21,188
Expenditures:
Supplies 12,190 17,337
Other services and charges 1,425 4,175
Total expenditures 13,615 21,512
Revenues over (under) expenditures 3,050 (324)
Fund balance - January 1 128,394 128,718
Fund balance - December 31 $131,444 $128,394
109
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 22
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Investment income:
Interest and dividends$2,700$2,700
Change in fair value(9,800)200
Contributions 1,4233,317
Total revenues(5,677)6,217
Expenditures:
Supplies 2,4248,680
Other services and charges2,0351,988
Total expenditures4,459 10,668
Revenues over (under) expenditures(10,136)(4,451)
Other financing sources (uses):
Transfers out (3,582)(1,200)
Total other financing sources (uses)(3,582)(1,200)
Net change in fund balance(13,718)(5,651)
Fund balance - January 1217,201222,852
Fund balance - December 31$203,483 $217,201
110
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 23
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Fees/program revenue $19,380$19,625
Rents 79,70975,074
Investment income:
Interest and dividends 6,5005,300
Change in fair value (24,200)300
Other 1,500 -
Total revenues82,889100,299
Expenditures:
Other services and charges - 262
Revenues over expenditures82,889100,037
Fund balance - January 1 443,477343,440
Fund balance - December 31$526,366$443,477
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT FUND 201 Statement 24
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted Amounts Final Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Licenses and permits $162,200$162,200$219,846$57,646$195,272
Investment income:
Interest and dividends - - 2,4002,4002,300
Change in fair value - - (8,800)(8,800)200
Miscellaneous - - 150 150137
Total revenues 162,200 162,200 213,596 51,396 197,909
Expenditures:
Personal services 149,142149,142155,483(6,341)187,165
Supplies 2,6202,6201,704 9163,481
Other services and charges 42,31242,31213,48828,82416,084
Total expenditures 194,074 194,074 170,675 23,399 206,730
Revenues over (under) expenditures (31,874)(31,874)42,921 74,795 (8,821)
Other financing sources (uses):
Transfers out (12,848)(12,848)(12,848) - (12,832)
Net change in fund balance ($44,722)($44,722)30,073 $74,795 (21,653)
Fund balance - January 1 192,890 214,543
Fund balance - December 31 $222,963 $192,890
2013
112
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY COMM DEV PROGRAMS FUND 202 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2013
With Comparative Amounts For The Year Ended December 31, 2012
20132012
Revenues:
Intergovernmental $583,384 $42,939
Investment income:
Interest and dividends - 200
Total revenues 583,384 43,139
Expenditures:
Other services and charges 100,000 30,585
Capital outlay 411,826 30,332
Total expenditures 511,826 60,917
Revenues over (under) expenditures 71,558 (17,778)
Fund balance - January 1 138,520 156,298
Fund balance - December 31 $210,078 $138,520
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 26
BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204
(COMPONENT UNIT)
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted AmountsFinal Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$269,564$269,564$269,395($169)$300,697
Fees/program revenues37,00037,00060(36,940)90
Intergovernmental:
Market value homestead credit - - - - 71
Investment income:
Interest and dividends - - 2,5022,5021,400
Change in fair value - - (7,600)(7,600)100
Total revenues306,564306,564264,357(42,207)302,358
Expenditures:
Personal services239,812239,812201,80538,007245,731
Other services and charges46,33246,33220,05226,28011,408
Supplies725725770(45)724
Total expenditures286,869286,869222,62764,242257,863
Revenues over (under) expenditures19,69519,69541,73022,03544,495
Other financing sources (uses):
Transfers out(12,848)(12,848)(12,848) - (25,997)
Net change in fund balance$6,847$6,84728,882$22,03518,498
Fund balance - January 1241,122222,624
Fund balance - December 31$270,004 $241,122
2013
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 27
COMBINING BALANCE SHEET
December 31, 2013
ParkviewParkviewTotal
VillaVillaHousing and
NorthSouthRedevelopment
Fund 203Fund 213Authority
Assets
Cash and investments$979,075$822,938$1,802,013
Receivables:
Accounts7,2346,17413,408
Interest - 1,8001,800
Total assets$986,309 $830,912 $1,817,221
Liabilities and Fund Balance
Liabilities:
Accounts payable$4,737$3,297$8,034
Due to other governmental units24,63811,91336,551
Interfund payable17,4026,30623,708
Unearned revenue3,9661,1945,160
Deposits17,8418,49226,333
Total liabilities68,58431,20299,786
Fund balance:
Restricted917,725 - 917,725
Committed - 799,710799,710
Total fund balance 917,725799,7101,717,435
Total liabilities and fund balance$986,309 $830,912 $1,817,221
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 28
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 2013
ParkviewParkviewTotal
VillaVillaHousing and
NorthSouthRedevelopment
Fund 203Fund 213Authority
Revenues:
Intergovernmental$139,078$ - $139,078
Rents358,201279,923638,124
Investment income:
Interest and dividends3,1689,10012,268
Change in fair value - (33,800)(33,800)
Other revenues:
Miscellaneous7,3493,06010,409
Total revenues507,796258,283766,079
Expenditures:
Personal services25,50011,50037,000
Supplies18,41216,81335,225
Other services and charges408,592179,374587,966
Total expenditures452,504207,687660,191
Revenues over (under) expenditures55,29250,596105,888
Fund balance - January 1862,433749,1141,611,547
Fund balance - December 31$917,725 $799,710 $1,717,435
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY- Statement 29
PARKVIEW VILLA NORTH FUND 203
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted Amounts Final Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental revenue $244,755$244,755$139,078($105,677)$184,349
Rents 357,767357,767358,201 434358,920
Investment income:
Interest and dividends 6,3046,3043,168(3,136)4,042
Other revenues 500 5007,3496,84911,476
Total revenues 609,326609,326507,796(101,530)558,787
Expenditures:
Personal services 25,50025,50025,500 - 25,500
Supplies 25,19025,19018,4126,77830,095
Other services and charges 463,562463,562408,59254,970510,917
Capital outlay 92,20092,200 - 92,200128,191
Total expenditures 606,452606,452452,504153,948694,703
Revenues over (under) expenditures $2,874$2,87455,292$52,418(135,916)
Fund balance - January 1 862,434 998,350
Fund balance - December 31 $917,726 $862,434
2013
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - HOUSING & REDEVELOPMENT AUTHORITY - Statement 30
PARKVIEW VILLA SOUTH FUND 213
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Variance with
Budgeted Amounts Final Budget-2012
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Rents $315,104$315,104$279,923($35,181)$294,651
Investment income:
Interest and dividends (3,500)(3,500)9,10012,600 8,800
Change in fair value - - (33,800)(33,800)600
Other 2,131 2,131 3,060 929 6,254
Total revenues 313,735313,735258,283(55,452)310,305
Expenditures:
Personal services 11,50011,50011,500 - 11,500
Supplies 8,617 8,61716,813(8,196)26,764
Other services and charges 228,451228,451179,37449,077216,376
Capital outlay 35,00035,000 - 35,000 -
Total expenditures 283,568283,568207,68775,881254,640
Revenues over expenditures $30,167$30,16750,596$20,42955,665
Fund balance - January 1 749,113 693,448
Fund balance - December 31 $799,709 $749,113
2013
118
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following kinds of Nonmajor Debt Service Funds during
the year:
Bond Debt Service Funds – are separate funds used to account for the revenues and expenditures
of each separate bond issue.
Tax Increment Financing Funds – are separate funds used to account for the revenues and
expenditures of each separate Tax Increment Financing District.
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2013
G.O.
Improvement/
Revenue Bonds
2006A Fund
340
G.O. Street
Rehabilitation
Bonds 2007
Fund 341
G.O. Public
Safety Center
Bonds 2008B
Fund 343
G.O. Public
Facilities
Bonds 2009A
Fund 344
G.O.
Improvement /
Revenue Bonds
2013A Fund 345
Assets
Cash and investments$ - $127,410$436,942$240,643$40,561
Receivables:
Accounts - - - - 150
Taxes - 1,2543,9371,182 -
Assessments - - - - 80,255
Interest - 100400300200
Land held for resale - - - - -
Total assets$0$128,764$441,279$242,125$121,166
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ - $ -
Due to other governmental units - - - - -
Interfund payable - - - - 80,255
Total liabilities000080,255
Deferred inflows of resources:
Unavailable revenue - - - - 80,255
Total deferred inflows of resources000080,255
Fund balance:
Nonspendable - - - - -
Restricted - 128,764441,279242,125 -
Unassigned - - - - (39,344)
Total fund balance0128,764441,279242,125(39,344)
Total liabilities, deferred inflows
of resources, and fund balance$0$128,764$441,279$242,125$121,166
.
120
Statement 31
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
$290,324$150,237$68,791$68,474$393,878$215,902$251,573$2,284,735
- - - - - - - 150
- 4,08291 - 20014,317 - 25,063
- - - - - - - 80,255
7003002002009005004004,200
394,980 - - - 249,088 - - 644,068
$686,004$154,619$69,082$68,674$644,066$230,719$251,973$3,038,471
$ - $ - $2,700$19,628$ - $2,272$ - $24,600
1,2081,0035195842,5203,815 - 9,649
- - 10,697 - - - - 90,952
1,2081,00313,91620,2122,5206,0870125,201
- 3,318 - - 26712,041 - 95,881
03,3180026712,041095,881
394,980 - - - 249,088 - - 644,068
289,816150,29855,16648,462392,191212,591251,9732,212,665
- - - - - - - (39,344)
684,796150,29855,16648,462641,279212,591251,9732,817,389
$686,004$154,619$69,082$68,674$644,066$230,719$251,973$3,038,471
EDA Component Unit
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2013
G.O.
Improvement/
Revenue Bonds
2006A Fund 340
G.O. Street
Rehabilitation
Bonds 2007
Fund 341
G.O. Public
Safety Center
Bonds 2008B
Fund 343
G.O. Public
Facilities Bonds
2009A Fund 344
G.O.
Improvement /
Revenue
Bonds 2013A
Fund 345
Revenues:
Taxes$ - $135,369$435,075$128,776$ -
Tax increment collections - - - - -
Investment income:
Interest and dividends1,0005002,0001,400100
Change in fair value(3,800)(1,900)(7,300)(5,400)(200)
Total revenues(2,800)133,969429,775124,776(100)
Expenditures:
Current:
Other services and charges - - - - 5,291
Capital outlay:
Community development - - - - -
Debt service:
Principal retirement926,730100,000205,000165,000 -
Interest and fiscal charges39,40827,207420,307128,838 -
Developer incentives - - - - -
Total expenditures966,138127,207625,307293,8385,291
Revenues over (under) expenditures(968,938)6,762(195,532)(169,062)(5,391)
Other financing sources (uses):
Transfers in509,245 - 175,00077,11063,180
Transfers out - - - - (425,154)
Bonds issued - - - - 328,021
Sale of capital assets - - - - -
Total other financing sources (uses)509,2450175,00077,110(33,953)
Net change in fund balance(459,693)6,762(20,532)(91,952)(39,344)
Fund balance - January 1459,693122,002461,811334,0770
Fund balance - December 31$0$128,764$441,279$242,125($39,344)
122
Statement 32
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
Intrafund
Eliminations
Total
Nonmajor
Debt Service
Funds
$ - $ - $ - $ - $ - $ - $ - $ - $699,220
- 73,24926,55043,69376,719307,717 - - 527,928
3,500 1,300 9008004,4002,4002,100 - 20,400
(13,100)(4,700)(3,400)(2,800)(16,500)(9,000)(8,000) - (76,100)
(9,600)69,84924,05041,69364,619301,117(5,900)01,171,448
11,612 2,629 1,7211,8445,48214,365 - - 42,944
56,001 - - - 79,061 - - - 135,062
- - - - 55,000 - 58,000 - 1,509,730
- - - - 25,807 - 144,571 - 786,138
- - 30,53159,639 - 73,802 - - 163,972
67,613 2,62932,25261,483165,35088,167202,571 02,637,846
(77,213)67,220(8,202)(19,790)(100,731)212,950(208,471)0(1,466,398)
- - - - - - 208,000 - 1,032,535
- - - - - (208,000) - - (633,154)
- - - - - - - 328,021
35,054 - - - - - - - 35,054
35,054 0 0 0 0(208,000)208,000 0762,456
(42,159)67,220(8,202)(19,790)(100,731)4,950(471)0(703,942)
726,95583,07863,36868,252742,010207,641252,444 - 3,521,331
$684,796$150,298$55,166$48,462$641,279$212,591$251,973 $0$2,817,389
EDA Component Unit
123
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124
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the
year:
Economic Development Authority – a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is to foster
economic development in the City.
Housing Maintenance Fund 408 – established to account for activities to maintain the quality
and quantity of housing in the City.
Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This
includes park dedication fees when available, the use of which is limited by state statute to park
improvements.
Infrastructure Replacement Fund 430 – used to fund replacement of City infrastructure.
Capital Equipment Fire Fund 439 – used to fund replacement of fire department capital assets.
This fund is limited by state statute to fire department expenditures. The original source of the
assets in this fund was excess funding in a fire pension plan.
Capital Equipment Cable TV Fund 440 – used to fund replacement of cable television capital
assets.
Capital Building Library Fund 450 – used to fund replacement of the library building.
125
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126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 33
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2013
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund 412
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Capital
Building
Library Fund
450
Total
Nonmajor
Capital
Project Funds
Assets
Cash and investments$ - $52,062$952,712$59,838$66,400$255,504$1,386,516
Due from other governments - 4,864 - - - - 4,864
Receivables:
Interest - 1002,400200200 - 2,900
Real estate held for resale357,478 - - - - - 357,478
Total assets$357,478$57,026$955,112$60,038$66,600$255,504$1,751,758
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $175$92$ - $ - $ - $267
Total liabilities017592000267
Fund balance:
Nonspendable 357,478 - - - - - 357,478
Committed - 56,851955,02060,03866,600255,5041,394,013
Total fund balance357,47856,851955,02060,03866,600255,5041,751,491
Total liabilities and fund balance$357,478$57,026$955,112$60,038$66,600$255,504$1,751,758
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 34
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2013
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund
412
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Capital
Building
Library
Fund 450
Total
Nonmajor
Capital
Project Funds
Revenues:
Intergovernmental$ - ($100)$ - $ - $ - $ - ($100)
Investment income:
Interest and dividends - 60012,000900800 - 14,300
Change in fair value - (2,400)(44,400)(3,200)(3,100) - (53,100)
Contributions - 1,50042,003 - - - 43,503
Total revenues0(400)9,603(2,300)(2,300)04,603
Expenditures:
Current:
Other services and charges - 26,78567,07915,282 - - 109,146
Capital outlay17,6137163,142 - - - 21,471
Total expenditures17,61327,50170,22115,28200130,617
Revenue over (under) expenditures(17,613)(27,901)(60,618)(17,582)(2,300)0(126,014)
Other financing sources (uses):
Transfers in - 50,00050,000 - - - 100,000
Total other financing sources (uses)050,00050,000000100,000
Net change in fund balance(17,613)22,099(10,618)(17,582)(2,300)0(26,014)
Fund balance - January 1375,09134,752965,63877,62068,900255,5041,777,505
Fund balance - December 31$357,478$56,851$955,020$60,038$66,600$255,504$1,751,491
128
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.
129
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 35
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals for December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:20132012
Current assets:
Cash and cash equivalents$5,623$131,491$787,392$74,110$ - $998,616$542,181
Receivables:
Accounts (net of allowance for
uncollectables)622,185 - 177,463250 - 799,898571,623
Interest1,5001,000 - 200 - 2,7004,600
Interfund receivable2,764 - - - - 2,76462,362
Inventory - at cost7,317 - - - - 7,3174,185
Total current assets639,389132,491964,85574,56001,811,2951,184,951
Noncurrent assets:
Capital assets:
Land45,223 - - - - 45,22345,223
Buildings559,826 - - - - 559,826559,826
Equipment477,897 - - - - 477,897462,515
Infrastructure8,346,965 - - - - 8,346,9658,346,965
Construction in process - - 473,821 - - 473,8217,006
Total capital assets9,429,9110473,821009,903,7329,421,535
Less: accumulated depreciation(4,492,495) - - - - (4,492,495)(4,263,186)
Total capital assets (net of
accumulated depreciation)4,937,4160473,821005,411,2375,158,349
Total noncurrent assets4,937,4160473,821005,411,2375,158,349
Total assets5,576,805132,4911,438,67674,56007,222,5326,343,300
Liabilities :
Current liabilities:
Accounts payable5,489 - 187,361 - - 192,8506,224
Accrued salaries and withholdings payable8,480 - 91 - - 8,5719,222
Contracts payable - retained percentage - - 16,830 - - 16,830 -
Due to other governmental units107,067 - 210,000 - - 317,067283,486
Interfund payable - - - 259,000 - 259,000399,497
Accrued interest payable - - - 2,789 - 2,78914,588
Deposits - - - - - - 3,000
Compensated absences payable - current1,635 - - - - 1,6351,533
Bonds payable - current - - - 35,000 - 35,000161,862
Total current liabilities 122,6710414,282296,7890833,742879,412
Noncurrent liabilities:
Compensated absences payable - noncurrent25,619 - - - - 25,61924,022
Bonds payable - noncurrent - - - 1,177,824 - 1,177,824789,628
Total noncurrent liabilities25,619001,177,82401,203,443813,650
Total liabilities148,2900414,2821,474,61302,037,1851,693,062
Net position:
Net investments in capital assets4,937,416 - 1,038,821(1,212,824) - 4,763,4133,883,859
Restricted - - - 71,771 - 71,771178,374
Unrestricted491,099132,491(14,427)(259,000) - 350,163588,005
Total net position$5,428,515 $132,491 $1,024,394 ($1,400,053)$0 $5,185,347 $4,650,238
Totals
130
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 36
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:20132012
Charges for services:
Customer services$113,915$ - $ - $ - $ - $113,915$114,635
Penalties89,224 - - - - 89,22468,095
Charges for sales:
Water 2,538,362 - - - - 2,538,3622,508,525
Meter8,96874,974189,605 - - 273,54780,508
Total operating revenues2,750,46974,974189,605003,015,0482,771,763
Operating expenses:
Cost of sales1,216,296 - - - - 1,216,2961,232,031
Distribution597,048 - 197,174 - - 794,222762,429
Administration20,699 - - - - 20,69921,489
Depreciation229,309 - - - - 229,309218,456
Total operating expenses2,063,352 0 197,174 0 0 2,260,526 2,234,405
Net income (loss) from operations687,117 74,974 (7,569)0 0 754,522 537,358
Nonoperating revenues (expenses):
Investment income:
Interest and dividends7,6004,700 - 900 - 13,20019,100
Change in fair value(28,200)(17,600) - (3,500) - (49,300)1,300
Intergovernmental1,971 - - - - 1,971 -
Miscellaneous revenues5,127 - - - - 5,1275,620
Miscellaneous expense - (1) - - - (1) -
Interest and fiscal charges - - - (62,763) - (62,763)(52,093)
Total nonoperating revenues (expenses)(13,502)(12,901)0 (65,363)0 (91,766)(26,073)
Net income (loss) before transfers673,615 62,073 (7,569)(65,363)0 662,756 511,285
Transfers in - 25,0001,640,211312,000(1,977,211) - -
Transfers out(1,009,234)(545,050) - (550,574)1,977,211(127,647)(133,344)
Total transfers(1,009,234)(520,050)1,640,211 (238,574)0 (127,647)(133,344)
Change in net position(335,619)(457,977)1,632,642 (303,937)0 535,109 377,941
Total net position - January 15,764,134590,468(608,248)(1,096,116) - 4,650,238 4,272,297
Total net position - December 31$5,428,515$132,491$1,024,394($1,400,053)$0$5,185,347$4,650,238
Totals
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from customers$2,791,900$2,749,287
Cash paid to suppliers for goods and services(1,435,452)(1,706,743)
Cash payments to employees for services(363,810)(339,588)
Net cash provided by (used in) from operating activities992,638702,956
Cash flows from noncapital financing activities:
Transfers out (127,647)(133,344)
Intergovernmental 1,971 -
Interfund receivable repaid by (advanced to) other funds59,5988,179
Interfund payable (repaid to) advanced by other funds(140,497)(57,003)
Net cash flows provided by (used in) noncapital financing activities(206,575)(182,168)
Cash flows from capital and related financing activities:
Acquisition of capital assets (482,202)(350,137)
Bonds issued 987,824 -
Principal payments - bonds (726,490)(152,880)
Interest and fiscal charges (74,560)(54,300)
Net cash flows provided by (used in) capital and related financing activities (295,428)(557,317)
Cash flows from investing activities:
Investment income
Interest and dividends 15,100 18,000
Change in fair value (49,300)1,300
Net cash flows provided by (used in) investing activities (34,200)19,300
Net increase (decrease) in cash and cash equivalents 456,435 (17,229)
Cash and cash equivalents - January 1 542,181 559,410
Cash and cash equivalents - December 31 $998,616 $542,181
Reconciliation of operating income to net cash flows from operating activities:
Operating income $754,522 $537,358
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 229,309 218,456
Miscellaneous revenues 5,127 5,620
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (228,275)(28,096)
(Increase) decrease in inventory, at cost (3,132)(2,473)
Increase (decrease) in accounts payable 186,628 (12,045)
Increase (decrease) in accrued salaries and withholdings payable (651)3,345
Increase (decrease) in due to other governmental units 16,830 (19,212)
Adjustment for nonoperating portion 33,581 -
Increase (decrease) in deposits payable (3,000)3,000
Increase (decrease) in compensated absences payable 1,699 (2,997)
Total adjustments 238,116 165,598
Net cash flows provided by (used in) operating activities $992,638 $702,956
132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals for December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets:20132012
Current assets:
Cash and cash equivalents$7,948$395,504$972,000$ - $1,375,452$1,347,004
Receivables:
Accounts (net of allowance for
uncollectibles)419,048 - - - 419,048419,781
Interest - 1,2001,800 - 3,0004,400
Interfund receivables - - - - - 22,858
Prepayments 81,254 - - - 81,25476,968
Total current assets 508,250396,704973,800 01,878,7541,871,011
Noncurrent assets:
Capital assets:
Land 36,586 - - - 36,58636,586
Buildings403,659 - - - 403,659100,426
Equipment939,340 - - - 939,340840,942
Construction in progress - - - - - 252,924
Infrastructure6,154,219 - - - 6,154,2196,154,219
Total capital assets7,533,8040007,533,8047,385,097
Less: accumulated depreciation (4,416,306) - - - (4,416,306)(4,277,960)
Net capital assets3,117,4980003,117,4983,107,137
Total noncurrent assets3,117,498 0 0 0 3,117,498 3,107,137
Total assets3,625,748396,704973,80004,996,2524,978,148
Liabilities:
Current liabilities:
Accounts payable23,57083,01611,252 - 117,83815,614
Accrued salaries and withholdings payable6,046 - 91 - 6,1374,733
Contracts payable - retained percentage31,100 - - - 31,10042,915
Compensated absences payable - current 2,313 - - - 2,3132,240
Total current liabilities63,02983,01611,3430157,38865,502
Noncurrent liabilities:
Compensated absences payable - noncurrent36,236 - - - 36,23635,087
Bonds payable - noncurrent - - - 365,000365,000 -
Total noncurrent liabilities36,23600365,000401,23635,087
Total liabilities99,26583,01611,343365,000558,624100,589
Net position:
Net investments in capital assets3,117,498 - 365,000(365,000)3,117,4983,107,137
Unrestricted408,985313,688597,457 - 1,320,1301,770,422
Total net position$3,526,483$313,688$962,457($365,000)$4,437,628$4,877,559
Totals
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 39
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Interfund
Eliminations
Operating revenues:20132012
Charges for services:
Sewer service charges$1,592,145$ - $ - $ - $ - $1,592,145$1,579,864
Operating expenses:
Disposal923,621 - - - - 923,621899,008
Collection384,333 - 10,019 - - 394,352379,462
Administration28,252 - - - - 28,25221,378
Depreciation138,346 - - - - 138,346131,755
Total operating expenses1,474,552010,019001,484,5711,431,603
Net income (loss) from operations117,5930(10,019)00107,574148,261
Nonoperating revenues (expenses):
Investment income
Interest and dividends - 6,1009,200 - - 15,30019,121
Change in fair value - (22,700)(34,100) - - (56,800)1,300
Miscellaneous revenues1,641 - - - - 1,6411,652
Gain on sale of capital assets - 25,000 - - - 25,000 -
Interest and fiscal charges - - - (5,000) - (5,000) -
Total nonoperating revenues (expenses)1,641 8,400 (24,900)(5,000)0 (19,859)22,073
Net income (loss) before transfers119,234 8,400 (34,919)(5,000)0 87,715 170,334
Transfers in303,23225,000363,231 - (691,463) - -
Transfers out(355,877)(200,000)(303,232)(360,000)691,463(527,646)(133,342)
Total transfers(52,645)(175,000)59,999 (360,000)0 (527,646)(133,342)
Change in net position66,589 (166,600)25,080 (365,000)0 (439,931)36,992
Net position - January 13,459,894480,288937,377 - - 4,877,5594,840,567
Net position - December 31$3,526,483$313,688$962,457($365,000)$0$4,437,628$4,877,559
Totals
134
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2013
With Comparative Totals for Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from customers$1,594,519 $1,532,212
Cash paid to suppliers for goods and services(1,003,397)(1,285,953)
Cash payments to employees for services(254,079)(225,252)
Net cash flows provided by (used in) operating activities337,04321,007
Cash flows from noncapital financing activities:
Transfers out (527,646)(133,342)
Interfund receivable repaid by (advanced to) other funds22,85852,371
Net cash flows provided by (used in) noncapital financing activities(504,788)(80,971)
Cash flows from capital and related financing activities:
Acquisition of capital assets(148,707)(373,690)
Sale of capital assets 25,000 -
Bonds issued 365,000 -
Interest and fiscal charges(5,000) -
Net cash flows provided by (used in) capital and related financing activities236,293(373,690)
Cash flows from investing activities:
Investment income
Interest and dividends16,70020,221
Change in fair value(56,800)1,300
Net cash flows provided by (used in) investing activities(40,100)21,521
Net increase (decrease) in cash and cash equivalents28,448 (412,133)
Cash and cash equivalents - January 11,347,004 1,759,137
Cash and cash equivalents - December 31$1,375,452 $1,347,004
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$107,574 $148,261
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense138,346131,755
Miscellaneous revenues1,6411,652
Changes in assets and liabilities:
(Increase) decrease in accounts receivable733(49,304)
(Increase) decrease in due from other governmental units - -
(Increase) decrease in prepayments(4,286)(2,051)
Increase (decrease) in accounts payable102,224(212,565)
Increase (decrease) in accrued salaries and withholdings payable1,404(2,232)
Increase (decrease) in contracts payable -retained percentage(11,815)155
Increase (decrease) compensated absences payable1,2225,336
Total adjustments229,469 (127,254)
Net cash flows provided by (used in) operating activities$337,043$21,007
Noncash capital and related financing activities:
Contribution of capital asset from government$ - $234,668
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals for December 31, 2012
20132012
Assets:
Current assets:
Cash and cash equivalents $1,038,897 $792,091
Receivables:
Accounts (net of allowance for uncollectibles)489,754 466,365
Interest 2,400 2,300
Due from other governmental units 33,541 5,034
Total current assets 1,564,592 1,265,790
Noncurrent assets:
Capital assets:
Buildings 56,000 56,000
Equipment 112,893 112,893
Total capital assets 168,893 168,893
Less: accumulated depreciation (118,616)(114,975)
Total capital assets (net of accumulated depreciation)50,277 53,918
Total noncurrent assets 50,277 53,918
Total assets 1,614,869 1,319,708
Liabilities:
Current liabilities:
Accounts payable 235,036 112,898
Accrued salaries and withholdings payable 1,822 1,467
Compensated absences payable - current 369 301
Total current liabilities 237,227 114,666
Noncurrent liabilities:
Compensated absences payable - noncurrent 5,778 4,720
Total liabilities 243,005 119,386
Net position:
Net investments in capital assets 50,277 53,918
Unrestricted 1,321,587 1,146,404
Total net position $1,371,864 $1,200,322
136
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 42
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Operating revenues:
Refuse service charges$1,826,226$1,761,860
Operating expenses:
Collection and disposal1,446,5491,415,885
Administration 52,36853,319
Recycling 67,54584,855
Hazardous waste 5,3023,249
Depreciation 3,6411,485
Total operating expenses1,575,405 1,558,793
Net income from operations250,821 203,067
Nonoperating revenues:
Investment income
Interest and dividends11,9009,800
Change in fair value(44,200)700
Intergovernmental68,565112,471
Total nonoperating revenues36,265 122,971
Net income before transfers287,086 326,038
Transfers out (115,544)(115,461)
Change in net position171,542 210,577
Total net position - January 11,200,322989,745
Total net position - December 31$1,371,864$1,200,322
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2013
With Comparative Totals for Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from customers $1,774,330 $1,728,024
Cash paid to suppliers for goods and services (1,352,865)(1,597,081)
Cash payments to employees for services (66,773)(76,772)
Net cash flows provided by (used in) operating activities 354,692 54,171
Cash flows from noncapital financing activities:
Transfers out (115,544)(115,461)
Intergovernmental 68,565 112,471
Interfund receivable repaid by (advanced to) other funds (28,507)(5,034)
Net cash flows provided by (used in) noncapital financing activities (75,486)(8,024)
Cash flows from capital and relateed financing activities:
Acquisition of capital assets - (54,203)
Cash flows from investing activities:
Investment income
Interest and dividends 11,800 9,700
Change in fair value (44,200)700
Net cash flows provided by (used in) investing activities (32,400)10,400
Net increase in cash and cash equivalents 246,806 2,344
Cash and cash equivalents - January 1 792,091 789,747
Cash and cash equivalents - December 31 $1,038,897 $792,091
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $250,821 $203,067
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 3,641 1,485
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (23,389)(33,836)
Increase (decrease) in accounts payable 122,138 (114,987)
Increase (decrease) in accrued salaries and withholdings payable 355 (1,540)
Increase (decrease) compensated absences payable 1,126 (18)
Total adjustments 103,871 (148,896)
Net cash flows provided by (used in) operating activities $354,692 $54,171
138
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals for December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:20132012
Current assets:
Cash and cash equivalents$312,995$ - $913,658$8,070$ - $1,234,723$37,976
Receivables:
Accounts (net of allowance for
uncollectibles)101,167 - - 350 - 101,51792,357
Interest400 - 800 - - 1,200502
Due from other governmental units - - 735 - - 735 -
Total current assets414,5620915,1938,42001,338,175130,835
Noncurrent assets:
Capital assets:
Land260,690 - - - - 260,690260,690
Equipment190,653 - - - - 190,653190,653
Infrastructure1,518,512 - - - - 1,518,5121,518,512
Construction in process - - 17,087 - - 17,087 -
Total capital assets1,969,855017,087001,986,9421,969,855
Less: accumulated depreciation(800,334) - - - - (800,334)(716,540)
Net capital assets1,169,521017,087001,186,6081,253,315
Total noncurrent assets1,169,521017,087001,186,6081,253,315
Total assets1,584,0830932,2808,42002,524,7831,384,150
Liabilities:
Current liabilities:
Accounts payable14,463 - 2,387 - - 16,85040
Accrued salaries and withholdings payable2,532 - 91 - - 2,6231,934
Interfund payable - - - 66,000 - 66,00086,862
Contracts payable1,799 - - - - 1,799 -
Accrued interest payable - - - - - - 2,838
Compensated absences payable - current 82 - - - - 82 84
Bonds payable - current - - - - - - 30,638
Total current liabilities 18,876 02,47866,000 087,354122,396
Noncurrent liabilities:
Compensated absences payable - noncurrent 1,284 - - - - 1,2841,317
Bonds payable - noncurrent - - - 859,155 - 859,155141,142
Total noncurrent liabilities1,28400859,1550860,439142,459
Total liabilities20,16002,478925,1550947,793264,855
Net position:
Net investment in capital assets1,169,521 - 755,000(859,155) - 1,065,3661,081,535
Restricted - - - 8420 - 8,420 -
Unrestricted394,402 - 174,802(66,000) - 503,20437,760
Total net position$1,563,923$0$929,802($916,735)$0$1,576,990$1,119,295
Totals
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
20132012
Operating revenues:
Storm sewer service charges$367,218$ - $ - $ - $ - $367,218$349,457
Operating expenses:
Collection189,113 - 7,609 - - 196,722235,471
Administration3,210 - - - - 3,2101,646
Depreciation83,795 - - - - 83,79583,993
Total operating expenses 276,118 07,609 0 0283,727321,110
Net income (loss) from operations 91,100 0(7,609)0 083,49128,347
Nonoperating revenues (expenses):
Investment income
Interest and dividends 2,200 - 3,800200 - 6,2002,100
Change in fair value (8,200) - (14,200)(700) - (23,100)100
Intergovernmental - - 14,335 - - 14,335 -
Miscellaneous revenues 1,707 - - - - 1,7073,886
Interest and fiscal charges - - - (24,938) - (24,938)(10,801)
Total nonoperating
revenues (expenses)(4,293)0 3,935 (25,438)0 (25,796)(4,715)
Net income (loss) before transfers 86,807 0 (3,674)(25,438)0 57,695 23,632
Transfers in 400,00094,908740,00068,000(902,908)400,000 -
Transfers out (162,908) - - (740,000)902,908 - -
Total transfers and contributions237,092 94,908 740,000 (672,000)0 400,000 0
Change in net position 323,899 94,908 736,326 (697,438)0 457,695 23,632
Net position - January 1 1,240,024(94,908)193,476(219,297) - 1,119,2951,095,663
Net position - December 31 $1,563,923 $0$929,802($916,735)$0$1,576,990$1,119,295
Totals
140
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2013
With Comparative Totals for Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from customers$359,029 $346,576
Cash paid to suppliers for goods and services(81,956)(116,644)
Cash payments to employees for services(98,714)(123,513)
Net cash flows provided by (used in) operating activities178,359106,419
Cash flows from noncapital financing activities:
Intergovernmental 14,335 -
Transfers in 400,000 -
Interfund payable (repaid to) advanced by other funds(20,862)(59,768)
Net cash flows provided by (used in) noncapital financing activities:393,473(59,768)
Cash flows from capital and related financing activities:
Acquisition of capital assets(17,086)(7,594)
Bonds issued 859,155 -
Principal payments - bonds(171,780)(28,120)
Interest and fiscal charges(27,776)(11,270)
Net cash flows provided by (used in) capital and related financing activities642,513(46,984)
Cash flows from investing activities:
Investment income:
Interest and dividends 5,5022,098
Change in fair value (23,100)100
Net cash flows provided by (used in) investing activities(17,598)2,198
Net increase (decrease) in cash and cash equivalents1,196,747 1,865
Cash and cash equivalents - January 137,97636,111
Cash and cash equivalents - December 31$1,234,723 $37,976
Reconciliation of operating income to net cash flows from operating activities:
Operating income $83,491 $28,347
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 83,79583,993
Miscellaneous revenue 1,7073,886
Changes in assets and liabilities:
(Increase) decrease in accounts receivable(9,160)(6,767)
(Increase) decrease in due from other governmental units(735)
Increase (decrease) in accounts payable16,808(3,340)
Increase (decrease) in accrued salaries and withholdings payable689(317)
Increase (decrease) in contracts payable - retained percentage1,799 -
Increase (decrease) compensated absences payable(35)617
Total adjustments 94,868 78,072
Net cash flows provided by (used in) operating activities$178,359$106,419
141
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142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 47
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals for December 31, 2012
OperatingDebt ServiceIntrafundTotals
AccountAccountEliminations20132012
Assets:
Current assets:
Cash and cash equivalents$316,682$276,148$ - $592,830$607,698
Cash and cash equivalents with fiscal agent - 399,254 - 399,254399,254
Receivables:
Accounts (net of allowance for uncollectables 88 - - 88 161
Interest - 200 - 200 200
Due from other governmental units 1,681 - - 1,681 475
Inventory - at cost 2,786,591 - - 2,786,5912,542,372
Total current assets 3,105,042675,602 03,780,6443,550,160
Noncurrent assets:
Capital assets:
Land 2,006,714 - - 2,006,7142,006,714
Buildings 3,915,062 - - 3,915,0623,915,062
Equipment 413,202 - - 413,202413,202
Total capital assets 6,334,978 0 06,334,9786,334,978
Less: accumulated depreciation (975,502) - - (975,502)(823,602)
Net capital assets 5,359,476 0 05,359,4765,511,376
Total noncurrent assets 5,359,476 0 05,359,4765,511,376
Total assets 8,464,518675,602 09,140,1209,061,536
Liabilities:
Current liabilities:
Accounts payable 313,130 - - 313,130400,342
Accrued salaries and withholdings payable 31,634 - - 31,63423,364
Due to other governmental units 97,413 - - 97,41393,033
Accrued interest payable - 97,173 - 97,173100,563
Compensated absences payable - current 5,447 - - 5,4475,222
Bonds payable - current - 170,000 - 170,000165,000
Total current liabilities 447,624267,173 0714,797787,524
Noncurrent liabilities:
Compensated absences payable - noncurrent85,338 - - 85,33881,816
Bonds payable - noncurrent - 4,260,000 - 4,260,0004,430,000
Total noncurrent liabilities 85,3384,260,000 04,345,3384,511,816
Total liabilities 532,9624,527,173 05,060,1355,299,340
Net position:
Net investments in capital assets 5,359,476(4,030,746) - 1,328,730916,376
Restricted for debt service - 179,175 - 179,175571,440
Unrestricted 2,572,080 - - 2,572,0802,274,380
Total net position $7,931,556($3,851,571)$0$4,079,985$3,762,196
143
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Operating Accounts
TopHeights
Top ValuValu IILiquor
Operating revenues:
Charges for sales:
Liquor$1,530,202$1,279,619$505,174
Beer1,530,2481,567,931504,958
Wine640,092629,61270,324
Other167,295186,424135,205
Total operating revenues3,867,837 3,663,586 1,215,661
Operating expenses:
Cost of goods sold2,904,1892,722,276951,166
Operating expense642,633510,096185,650
Depreciation83,58764,7293,584
Total operating expenses3,630,4093,297,101 1,140,400
Net income from operations$237,428$366,485$75,261
Nonoperating revenues (expenses):
Investment income:
Interest and dividends
Change in fair value
Interest and fiscal charges
Miscellaneous expense
Total nonoperating revenues (expenses)
Net income (loss) before transfers
Transfers in
Transfers out
Total transfers
Change in net position
Net position - January 1, as previously reported
Prior period adjustment
Net position - January 1, as restated
Net position - December 31
144
Statement 48
TotalDebt
OperatingServiceIntrafundTotals
AccountsAccountEliminations20132012
$3,314,995$ - $ - $3,314,995$3,282,685
3,603,137 - - 3,603,1373,680,765
1,340,028 - - 1,340,0281,336,603
488,924 - - 488,924504,180
8,747,084 0 0 8,747,084 8,804,233
6,577,631 - - 6,577,6316,654,657
1,338,379 - - 1,338,3791,315,396
151,900 - - 151,900150,287
8,067,910 0 0 8,067,910 8,120,340
679,1740 0 679,174 683,893
- 900 - 900900
- (3,400) - (3,400)100
- (215,511) - (215,511)(237,325)
(11,040) - - (11,040) -
(11,040)(218,011)0 (229,051)(236,325)
668,134(218,011)0 450,123 447,568
- 390,000(390,000) - -
(522,334) - 390,000(132,334)(96,667)
(522,334)390,0000(132,334)(96,667)
145,800171,9890317,789350,901
7,785,756(4,023,560) - 3,762,1963,476,484
- - - - (65,189)
7,785,756(4,023,560)03,762,1963,411,295
$7,931,556($3,851,571)$0$4,079,985$3,762,196
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2013
With Comparative Amount for Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from customers$8,745,951$8,805,094
Cash paid to suppliers for goods and services(7,264,578)(7,028,496)
Cash payments to employees for services(977,506)(960,860)
Net cash flows provided by (used in) operating activities503,867815,738
Cash flows from noncapital financing activities
Transfers in (132,334)(96,667)
Net cash flows provided by (used in) noncapital financing activities(132,334)(96,667)
Cash flows from capital and related financing activities:
Acquisition of capital assets - (26,887)
Principal payments - bonds(165,000)(155,000)
Interest and fiscal charges(218,901)(208,267)
Net cash flows provided by (used in) capital and related financing activities(383,901)(390,154)
Cash flows from investing activities:
Investment income
Interest and dividends 900900
Change in fair value(3,400)100
Net cash flows provided by (used in) investing activities(2,500)1,000
Net increase (decrease) in cash and cash equivalents(14,868)329,917
Total cash and cash equivalents - January 11,006,952677,035
Total cash and cash equivalents - December 31992,084 1,006,952
(Less) cash and cash equivalents with fiscal agent - December 31(399,254)(399,254)
Cash and cash equivalents - December 31$592,830$607,698
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2
For Year Ended December 31, 2013
With Comparative Amount for Year Ended December 31, 2012
20132012
Reconciliation of operating income to net cash flows from operating activities:
Operating income $679,174$683,893
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense151,900150,287
Miscellaneous expense(11,040) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable73108
(Increase) decrease in due from other governmental units(1,206)753
(Increase) decrease in inventory, at cost(244,219)(185,790)
Increase (decrease) in accounts payable(87,212)161,438
Increase (decrease) in contracts payable - retained percentage8,2703,237
Increase (decrease) in due to other governmental units4,380(2,065)
Increase (decrease) in compensated absences payable3,7473,877
Total adjustments(175,307)131,845
Net cash flows provided by (used in) operating activities$503,867$815,738
147
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148
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.
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 50
COMBINING STATEMENT OF NET POSITION
December 31, 2013
Central
Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Assets:
Current assets:
Cash and cash equivalents$487,954$666,707$1,055,915$937,689$3,148,265
Interest receivable1,3001,7002,600 - 5,600
Prepayments - - 54,051 - 54,051
Inventory - at cost63,091 - - - 63,091
Total current assets552,345668,4071,112,566937,6893,271,007
Noncurrent assets:
Capital assets:
Land15,779 - - - 15,779
Buildings1,978,958 - - - 1,978,958
Equipment222,295195,300 - - 417,595
Construction in progress21,841 - - - 21,841
Total capital assets2,238,873195,300002,434,173
Less: accumulated depreciation(865,800)(172,264) - - (1,038,064)
Net capital assets1,373,07323,036001,396,109
Total noncurrent assets1,373,07323,036001,396,109
Total assets1,925,418 691,443 1,112,566 937,689 4,667,116
Liabilities:
Current liabilities:
Accounts payable18,4106,3232,945 - 27,678
Accrued salaries and withholdings payable5,1796,325 - - 11,504
Unearned revenue7,673 - - - 7,673
Compensated absences payable - current2,3071,377 - 56,26159,945
Total current liabilities33,569 14,025 2,945 56,261 106,800
Noncurrent liabilities:
Compensated absences payable - noncurrent36,14721,572 - 881,428939,147
Total liabilities69,716 35,597 2,945 937,689 1,045,947
Net position:
Net investments in capital assets1,373,07323,036 - - 1,396,109
Unrestricted482,629632,8101,109,621 - 2,225,060
Total net position$1,855,702$655,846$1,109,621$0$3,621,169
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 51
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
Central
Garage
Information
SystemsInsurance
Compensated
Absences
Interfund
Eliminations
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments$173,335$ - $498,7101,413$ - $673,458
Use of space296,064 - - - - 296,064
Recovery of damages - - 28,361 - - 28,361
Charges for sales:
Sales of motor fuel176,961 - - - - 176,961
Total operating revenues646,360 0 527,071 1,413 0 1,174,844
Operating expenses:
Cost of services and space548,974327,129474,590 - - 1,350,693
Depreciation68,08019,593 - - - 87,673
Total operating expenses617,054 346,722 474,590 0 0 1,438,366
Net income (loss) from operations29,306(346,722)52,4811,4130(263,522)
Nonoperating revenues (expenses):
Investment income
Interest and dividends6,6008,50012,900 - - 28,000
Change in fair value(24,400)(31,500)(48,000) - - (103,900)
Intergovernmental6,599 - - - - 6,599
Total nonoperating revenues
(expenses)(11,201)(23,000)(35,100)0 0 (69,301)
Net income (loss) before transfers18,105 (369,722)17,381 1,413 0(332,823)
Transfers in - 325,000 - - (35,000)290,000
Transfers out(35,000) - - - 35,000 -
Total transfers and
capital contributions(35,000)325,000 0 0 0 290,000
Change in net position(16,895)(44,722)17,381 1,413 0(42,823)
Net position - January 11,872,597700,5681,092,240(1,413) - 3,663,992
Net position - December 31$1,855,702 $655,846 $1,109,621 $0 $0 $3,621,169
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2013
Central Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from interfund goods and services provided$646,360$ - $498,710$596,461$1,741,531
Cash received for damages - - 28,361 - 28,361
Cash paid to suppliers for goods and services(357,483)(75,234)(474,795) - (907,512)
Cash payments to employees for services(210,618)(239,182) - (570,910)(1,020,710)
Net cash flows provided by (used in) operating activities78,259(314,416)52,27625,551(158,330)
Cash flows from noncapital financing activities:
Intergovernmental6,599 - - - 6,599
Transfers in - 325,000 - - 325,000
Transfers out(35,000) - - - (35,000)
Net cash flows provided by (used in)
noncapital financing activities(28,401)325,000 0 0 296,599
Cash flows from capital and related financing activities:
Acquisition of capital assets(133,349) - - - (133,349)
Net cash flows provided by (used in)
capital and related financing activities(133,349)0 0 0 (133,349)
Cash flows from investing activities:
Investment income:
Interest and dividends6,9998,80013,200 - 28,999
Change in fair value(24,400)(31,500)(48,000) - (103,900)
Net cash flows provided by (used in) investing activities(17,401)(22,700)(34,800)0(74,901)
Net increase (decrease) in cash and cash equivalents(100,892)(12,116)17,476 25,551 (69,981)
Cash and cash equivalents - January 1588,846678,8231,038,439912,1383,218,246
Cash and cash equivalents - December 31$487,954 $666,707 $1,055,915 $937,689 $3,148,265
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss)$29,306($346,722)$64,041$1,413($251,962)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous expense - - (11,560) - (11,560)
Depreciation expense68,08019,593 - - 87,673
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - - 2,819 - 2,819
(Increase) decrease in prepayments - - (5,969) - (5,969)
(Increase) decrease in inventory, at cost5,587 - - - 5,587
Increase (decrease) in accounts payable(26,825)4,4932,945 - (19,387)
Increase (decrease) in accrued
salaries and withholdings payable8201,036 - - 1,856
Increase (decrease) in deferred revenue223 - - - 223
Increase (decrease) in compensated absences payable1,0687,184 - 24,13832,390
Total adjustments48,953 32,306 (11,765)24,138 93,632
Net cash flows provided by (used in) operating activities$78,259($314,416)$52,276$25,551($158,330)
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 53
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals For December 31, 2012
Capital
Equipment
OperatingReplacementTotals
AccountAccount20132012
Assets:
Current assets:
Cash and cash equivalents$448,918$39,036$487,954$588,846
Interest receivable1,2001001,3001,700
Inventory - at cost63,091 - 63,09168,678
Total current assets513,20939,136552,345659,224
Noncurrent assets:
Capital assets:
Land15,779 - 15,77915,779
Buildings1,978,958 - 1,978,9581,812,838
Equipment222,295 - 222,295208,137
Construction in progress21,841 - 21,84168,770
Total capital assets2,238,87302,238,8732,105,524
Less: Accumulated depreciation(865,800) - (865,800)(797,721)
Net capital assets1,373,07301,373,0731,307,803
Total noncurrent assets1,373,07301,373,0731,307,803
Total assets1,886,28239,1361,925,4181,967,027
Liabilities:
Current liabilities:
Accounts payable18,410 - 18,41045,235
Accrued salaries and withholdings payable5,179 - 5,1794,359
Unearned revenue7,673 - 7,6737,450
Compensated absences payable - current2,307 - 2,3072,243
Total current liabilities33,569 0 33,569 59,287
Noncurrent liabilities:
Compensated absences payable - noncurrent36,147 - 36,14735,143
Total liabilities69,716 0 69,716 94,430
Net position:
Net investments in capital assets1,373,073 - 1,373,0731,307,803
Unrestricted443,49339,136482,629564,794
Total net position$1,816,566$39,136$1,855,702$1,872,597
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 54
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Capital
Equipment
OperatingReplacementIntrafundTotals
AccountAccountEliminations20132012
Operating revenues:
Charges for services:
Services to departments$173,335$ - $ - $173,335$179,376
Use of space296,064 - - 296,064300,478
Charges for sales:
Sales of motor fuel176,961 - - 176,961156,113
Total operating revenues646,360 0 0 646,360635,967
Operating expenses:
Cost of services and space548,974 - - 548,974505,056
Depreciation68,080 - - 68,08062,656
Total operating expenses617,054 0 0 617,054567,712
Net income from operations29,3060 0 29,30668,255
Nonoperating revenues:
Investment income:
Interest and dividends6,200400 - 6,6007,000
Change in fair value(23,000)(1,400) - (24,400)400
Intergovernmental6,599 - - 6,599 -
Total nonoperating revenues(10,201)(1,000)0(11,201)7,400
Net income before transfers19,105(1,000)018,105 75,655
Transfers in - 4,000(4,000) - 4,000
Transfers out(39,000) - 4,000(35,000)(39,000)
Total transfers(39,000)4,000 0 (35,000)(35,000)
Change in net position(19,895)3,000 0 (16,895)40,655
Total net position - January 11,836,46136,136 - 1,872,5971,831,942
Total net position - December 31$1,816,566 $39,136 $0 $1,855,702 $1,872,597
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 55
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from interfund goods & services provided$646,360$635,967
Cash paid to suppliers for goods and services(357,483)(388,293)
Cash payments to employees for services(210,618)(214,609)
Net cash flows provided by (used in) operating activities78,259 33,065
Cash flows from noncapital financing activities:
Intergovernmental 6,599 -
Transfers out (35,000)(35,000)
Net cash flows provided by (used in) noncapital financing activities:(28,401)(35,000)
Cash flows from capital and related financing activities:
Acquisition of capital assets(133,349)(48,646)
Cash flows from investing activities:
Investment income:
Interest and dividends6,9996,800
Change in fair value(24,400)400
Net cash flows provided by (used in) investing activities(17,401)7,200
Net increase (decrease) in cash and cash equivalents(100,892)(43,381)
Cash and cash equivalents - January 1588,846632,227
Cash and cash equivalents - December 31$487,954 $588,846
Reconciliation of operating income to net cash flows from operating activities:
Operating income $29,306$68,255
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense68,08062,656
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - 196
(Increase) decrease in inventory, at cost5,587(10,105)
Increase (decrease) in accounts payable(26,825)(90,082)
Increase (decrease) in accrued salaries and withholdings payable820703
Increase (decrease) in compensated absences payable1,0681,225
Increase (decrease) in deferred revenue223217
Total adjustments48,953(35,190)
Net cash flows provided by (used in) operating activities$78,259$33,065
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 56
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals For December 31, 2012
Capital
Equipment
Operating ReplacementTotals
AccountAccount20132012
Assets:
Current assets:
Cash and cash equivalents$229,428$437,279$666,707$678,823
Interest receivable5001,2001,7002,000
Total current assets229,928438,479668,407680,823
Noncurrent assets:
Capital assets:
Equipment195,300 - 195,300195,300
Less: accumulated depreciation(172,264) - (172,264)(152,671)
Net capital assets23,036023,03642,629
Total noncurrent assets23,036023,03642,629
Total assets252,964438,479691,443723,452
Liabilities:
Current liabilities:
Accounts payable3,5222,8016,3231,830
Accrued salaries and withholdings payable6,325 - 6,3255,289
Compensated absences payable - current1,377 - 1,377946
Total current liabilities11,2242,80114,0258,065
Noncurrent liabilities:
Compensated absences payable - noncurrent21,572 - 21,57214,819
Total liabilities32,7962,80135,59722,884
Net position:
Net investments in capital assets23,036 - 23,03642,629
Unrestricted197,132435,678632,810657,939
Total net position$220,168 $435,678 $655,846 $700,568
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Capital
Equipment
OperatingReplacementIntrafund Totals
AccountAccountEliminations2013 2012
Operating revenues $ - $ - $ - $ - $ -
Operating expenses:
Cost of services 295,55331,576 - 327,129262,230
Depreciation 19,593 - - 19,59318,629
Total operating expenses 315,14631,576 0346,722280,859
Net income (loss) from operations (315,146)(31,576)0(346,722)(280,859)
Nonoperating revenues:
Investment income
Interest and dividends 2,700 5,800 - 8,500 8,200
Change in fair value (9,900)(21,600) - (31,500)600
Total nonoperating revenues (7,200)(15,800) - (23,000)8,800
Net income (loss) before transfers (322,346)(47,376)0 (369,722)(272,059)
Transfers in 325,000 - - 325,000325,000
Change in net position 2,654 (47,376)0 (44,722)52,941
Net position - January 1 217,514483,054 - 700,568647,627
Net position - December 31 $220,168 $435,678 $0 $655,846 $700,568
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash paid to suppliers for goods and services($75,234)($47,896)
Cash payments to employees for services(239,182)(214,827)
Net cash flows provided by (used in) operating activities(314,416)(262,723)
Cash flows from noncapital financing activities:
Transfers in 325,000325,000
Net cash flows from noncapital financing activites325,000325,000
Cash flows from capital and related financing activities:
Acquisition of capital assets - (12,596)
Cash flows from investing activities:
Investment income:
Interest and dividends8,8008,400
Change in fair value(31,500)200
Net cash flows provided by (used in) investing activities(22,700)8,600
Net increase in cash and cash equivalents(12,116)58,281
Cash and cash equivalents - January 1678,823620,542
Cash and cash equivalents - December 31$666,707$678,823
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($346,722)($280,859)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense19,59318,629
Changes in assets and liabilities:
Increase (decrease) in accounts payable4,493(2,203)
Increase (decrease) in accrued salaries and withholdings payable1,036(2,473)
Increase (decrease) in compensated absences payable7,1844,183
Total adjustments32,30618,136
Net cash flows provided by (used in) operating activities($314,416)($262,723)
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 59
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals For December 31, 2012
20132012
Assets:
Current assets:
Cash and cash equivalents $1,055,915 $1,038,439
Interest receivable 2,600 2,900
Accounts receivable - 2,819
Prepayments 54,051 48,082
Total assets 1,112,566 1,092,240
Liabilities:
Current liabilities:
Accounts payable 2,945 -
Total liabilities 2,945 0
Net position:
Unrestricted 1,109,621 1,092,240
Total net position $1,109,621 $1,092,240
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 60
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Operating revenues:
Insurance allocation$498,710$508,546
Recovery of damages28,36119,255
Total operating revenues527,071 527,801
Operating expenses:
Cost of services:
Premiums 446,194366,495
Claims 28,39629,343
Total operating expenses474,590 395,838
Net income from operations52,481131,963
Nonoperating revenues:
Investment income
Interest and dividends12,90012,000
Change in fair value(48,000)800
Total nonoperating revenues(35,100)12,800
Net income 17,381 144,763
Change in net position17,381 144,763
Net position - January 11,092,240947,477
Net position - December 31$1,109,621 $1,092,240
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 61
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from interfund services provided$498,710$508,546
Cash received for damages28,36119,255
Cash paid to suppliers for goods and services(474,795)(399,133)
Net cash flows provided by (used in) operating activities52,276 128,668
Cash flows from investing activities:
Investment income
Interest and dividends13,20011,400
Change in fair value(48,000)800
Net cash flows provided by (used in) investing activities(34,800)12,200
Net increase in cash and cash equivalents17,476 140,868
Cash and cash equivalents - January 11,038,439897,571
Cash and cash equivalents - December 31$1,055,915 $1,038,439
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$64,041$152,982
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Miscellaneous expense(11,560)(21,019)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable2,819(22)
(Increase) decrease in prepayments(5,969)(1,273)
Increase (decrease) in accounts payable2,945(2,000)
Total adjustments(11,765)(24,314)
Net cash flows provided by (used in) operating activities$52,276$128,668
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 62
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2013
With Comparative Totals For December 31, 2012
20132012
Assets:
Current assets:
Cash and cash equivalents$937,689$912,138
Total assets 937,689912,138
Liabilities:
Current liabilities:
Compensated absences payable - current56,26154,813
Noncurrent liabilities:
Compensated absences payable - noncurrent881,428858,738
Total liabilities937,689913,551
Net position:
Unrestricted - (1,413)
Total net position $0 ($1,413)
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 63
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Operating revenues $1,413$ -
Net income (loss) from operations1,413 0
Change in net position 1,4130
Net position - January 1(1,413)(1,413)
Net position - December 31$0 ($1,413)
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 64
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
20132012
Cash flows from operating activities:
Cash received from interfund services provided$596,461$438,786
Cash payments to employees for services(570,910)(433,764)
Net cash flows provided by (used in) operating activities25,5515,022
Net increase in cash and cash equivalents25,5515,022
Cash and cash equivalents - January 1912,138907,116
Cash and cash equivalents - December 31$937,689 $912,138
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$1,413$ -
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
Increase (decrease) in compensated absences payable24,1385,022
Total adjustments24,1385,022
Net cash flows provided by (used in) operating activities$25,551$5,022
164
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.
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 65
AGENCY FUNDS
For The Year Ended December 31, 2013
BalanceBalance
January 1,December 31,
2013AdditionsDeletions2013
Permit Surcharge Fund
Assets:
Cash and investments$1,800$39,888($40,164)$1,524
Total assets$1,800$39,888($40,164)$1,524
Liabilities:
Due to other governmental units$1,800$41,220($41,496)$1,524
Total liabilities$1,800$41,220($41,496)$1,524
Tri-City GIS Fund
Assets:
Cash and investments$7,947$80,695($80,255)$8,387
Due from other governmental units1464,633(64,647)-
Total assets $7,961$145,328($144,902)$8,387
Liabilities:
Accounts payable $5,851$102,880($102,949)$5,782
Due to other governmental units 2,110 65,127 (64,633)2,605
Total liabilities $7,961$168,007($167,582)$8,387
Total
Assets:
Cash and investments$9,747$120,583($120,419)$9,911
Due from other governmental units1464,633(64,647) -
Total assets$9,761$185,216($185,066)$9,911
Liabilities:
Accounts payable$5,851$102,880($102,949)$5,782
Due to other governmental units3,910106,347(106,128)4,129
Total liabilities$9,761$209,227($209,077)$9,911
166
III. STATISTICAL SECTION (UNAUDITED)
167
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168
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.
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET POSITIONS BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200420052006
Governmental activities:
Invested in capital assets, net of related debt$14,328,916$16,727,724$18,043,277
Restricted2,285,3052,302,0562,224,384
Unrestricted20,455,98118,650,98123,028,974
Total governmental activities net position$37,070,202$37,680,761$43,296,635
Business-type activities:
Invested in capital assets, net of related debt$6,175,547$6,732,499$5,759,805
Restricted337,389375,652455,227
Unrestricted6,918,7456,506,2017,299,574
Total business-type activities net position$13,431,681$13,614,352$13,514,606
Primary government:
Invested in capital assets, net of related debt$20,504,463$23,460,223$23,803,082
Restricted2,622,6942,677,7082,679,611
Unrestricted27,374,72625,157,18230,328,548
Total primary government net position$50,501,883$51,295,113$56,811,241
Note: The City implemented GASB statement No. 65 in fiscal 2012. 2011 net position information has
been restated for this accounting change. Years prior to 2011 have not been restated.
Fiscal Year
170
Table 1
2007200820092010201120122013
$18,859,030$23,497,922$24,163,911$26,279,178$28,095,261$27,666,461$27,358,490
2,228,4542,316,9592,458,7432,034,0303,213,4552,624,4662,025,652
22,985,52321,011,46522,423,35123,142,53421,119,17921,241,59522,222,578
$44,073,007$46,826,346$49,046,005$51,455,742$52,427,895$51,532,522$51,606,720
$6,039,739$7,142,278$7,459,474$8,044,184$9,331,167$9,819,666$10,365,407
775,036745,601648,435438,275381,465161,503643,320
6,478,3835,855,4956,014,1406,725,3835,918,1476,680,6096,690,111
$13,293,158$13,743,374$14,122,049$15,207,842$15,630,779$16,661,778$17,698,838
$24,898,769$30,640,200$31,623,385$34,323,362$37,426,428$37,486,127$37,723,897
3,003,4903,062,5603,107,1782,472,3053,594,9202,785,9692,668,972
29,463,90626,866,96028,437,49129,867,91727,037,32627,922,20428,912,689
$57,366,165$60,569,720$63,168,054$66,663,584$68,058,674$68,194,300$69,305,558
Fiscal Year
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200420052006
Expenses
Governmental activities:
General government$1,669,721$1,681,229$1,689,675
Public safety3,640,9704,052,9053,992,930
Public works2,109,0602,391,7262,353,032
Culture and recreation1,904,8482,017,8162,135,633
Community development2,171,4075,360,4422,579,084
Interest on long-term debt387,544288,532118,760
Total governmental activities expenses11,883,55015,792,65012,869,114
Business-type activities:
Water1,637,3161,717,4452,026,603
Sewer1,219,2001,333,4201,393,679
Refuse 1,321,7301,147,3131,147,879
Storm sewer158,374162,915184,764
Liquor6,593,5786,544,1756,377,805
Total business-type activities expenses10,930,19810,905,26811,130,730
Total primary government expenses$22,813,748$26,697,918$23,999,844
Program revenues
Governmental activities:
Charges for services:
General government$203,344$228,740$171,146
Public safety488,216423,450528,752
Public works48,25381,607267,960
Culture and recreation239,352250,380263,565
Community development1,313,9122,748,5421,461,497
Operating grants and contributions:
General government - 792,769
Public safety436,460557,983355,356
Public works213,801178,311161,176
Culture and recreation72,26976,40579,371
Community development955,213144,121160,017
Capital grants and contributions:
General government - - -
Public safety225,000599,91752,463
Public works1,315,00746,0523,896,862
Culture and recreation50,2501,702,543141,738
Community development177,737 - 682,872
Total governmental activities program revenues5,738,8147,038,1308,225,544
Fiscal Year
172
Table 2
Page 1 of 2
2007200820092010201120122013
$1,732,111$1,835,453$1,761,334$2,013,750$2,039,680$1,977,594$1,976,207
4,380,3634,599,6694,591,9775,473,2245,549,6785,708,0095,683,769
2,506,9132,906,9502,794,1892,777,9662,654,0473,200,5722,843,102
2,313,7502,283,8812,182,8562,479,5192,576,4092,500,7192,553,760
5,918,2574,476,4752,385,4052,295,5741,630,3502,157,9662,010,040
496,688721,006961,392959,320909,858845,879808,933
17,348,08216,823,43414,677,15315,999,35315,360,02216,390,73915,875,811
2,113,1212,149,9761,927,8112,000,1012,370,0762,311,8582,371,414
1,675,7381,571,4871,737,1341,478,5181,710,3811,464,2691,538,970
1,170,7071,185,2981,290,5281,426,4861,561,6591,601,6481,628,966
204,221216,362376,884272,355298,577329,998307,876
6,539,3577,470,3237,701,9617,910,9518,155,8888,371,6108,341,309
11,703,14412,593,44613,034,31813,088,41114,096,58114,079,38314,188,535
$29,051,226$29,416,880$27,711,471$29,087,764$29,456,603$30,470,122$30,064,346
$177,378$173,485$169,850$192,005$189,641$204,391$385,728
670,017616,107637,653715,205697,656736,927706,168
130,35167,22634,14944,21148,303139,30539,141
297,341262,562256,969269,825159,829137,978163,931
1,504,6791,562,3451,019,1911,114,848962,276961,420976,030
- 2,5601,505 - - - -
389,325433,732434,402559,482563,914556,387511,527
154,309154,049161,401166,468176,578189,039233,748
47,784239,865102,51793,47476,86457,33756,069
159,624185,506211,400241,919112,89523,010 -
- - - 194,84238,399 - -
103,97457,70019,52016,02611,303 - -
1,448,1801,596,3481,683,0242,848,1791,314,547797,921855,227
71,51642,5881,50015,724 - - -
1,311,5252,974,449199,505541,826175,467204,3491,026,706
6,466,0038,368,5224,932,5867,014,0344,527,6724,008,0644,954,275
Fiscal Year
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200420052006
Business-type activities:
Charges for services:
Water$1,771,153$1,887,990$2,141,648
Sewer1,019,5321,145,8101,374,217
Refuse1,255,0111,256,1801,263,267
Storm sewer284,223274,907270,467
Liquor6,975,7566,714,5756,546,979
Operating grants and contributions:
Water - - -
Sewer - - -
Refuse46,63546,17047,755
Storm sewer - - -
Capital grants and contributions:
Water - - 22,822
Sewer - - -
Refuse - - -
Storm sewer113,407 - -
Total business-type activities program revenues11,465,71711,325,63211,667,155
Total primary government program revenues$17,204,531$18,363,762$19,892,699
Net (expense) revenue:
Governmental activities($6,144,736)($8,754,520)($4,643,570)
Business-type activities535,519420,364536,425
Total primary government net (expense) revenue(5,609,217)(8,334,156)(4,107,145)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes4,989,2055,662,3685,953,722
Tax increment collections972,2081,088,2671,086,298
Unrestricted grants and contributions2,337,3861,768,2161,679,384
Investment earnings729,456471,142706,231
Miscellaneous - 18,98015,930
Transfers467,091445,249957,879
Total governmental activities9,495,3469,454,22210,399,444
Business-type activities:
Investment earnings215,062118,413181,708
Transfers(467,091)(445,249)(957,879)
Total business-type activities(252,029)(326,836)(776,171)
Total primary government$9,243,317$9,127,386$9,623,273
Change in net position:
Governmental activities$3,350,610$699,702$5,755,874
Business-type activities283,49093,528(239,746)
Total primary government$3,634,100$793,230$5,516,128
Fiscal Year
174
Table 2
Page 2 of 2
2007200820092010201120122013
$2,273,980$2,414,316$2,471,257$2,503,506$2,530,803$2,777,383$3,020,174
1,419,2521,440,1651,465,4961,594,3221,523,8521,581,5161,618,786
1,303,4721,341,0141,383,9791,542,3121,682,1781,761,8601,826,226
290,419314,238370,590345,086350,618353,343368,925
6,722,6227,490,9427,962,8848,158,2598,494,9628,804,2338,747,084
- - - - - - 1,971
- 1,718 - - - - -
36,06050,57250,10536,65366,16362,47168,565
- - - - - - 14,335
- - - - - - -
- 54,774 - - - - -
- - - - - 50,000 -
- - - - - -
12,045,80513,107,73913,704,31114,180,13814,648,57615,390,80615,666,066
$18,511,808$21,476,261$18,636,897$21,194,172$19,176,248$19,398,870$20,620,341
($10,882,079)($8,454,912)($9,744,567)($8,985,319)($10,832,350)($12,382,675)($10,921,536)
342,661514,293669,9931,091,727551,9951,311,4231,477,531
(10,539,418)(7,940,619)(9,074,574)(7,893,592)(10,280,355)(11,071,252)(9,444,005)
6,321,4676,762,1298,046,3188,825,5029,069,0929,363,5989,827,378
1,183,0621,557,8911,244,684812,965558,861553,050532,524
1,844,5161,516,4121,731,1851,176,9341,278,1951,003,5521,000,513
1,379,7261,050,827475,345487,612598,880295,950(664,694)
44,00040,87782,704 - 34,4857,33811,842
456,537280,115383,99092,044264,990263,814288,171
11,229,30811,208,25111,964,22611,395,05711,804,50311,487,30210,995,734
321,571216,03892,67286,110135,93263,321(152,300)
(456,537)(280,115)(383,990)(92,044)(264,990)(263,814)(288,171)
(134,966)(64,077)(291,318)(5,934)(129,058)(200,493)(440,471)
$11,094,342$11,144,174$11,672,908$11,389,123$11,675,445$11,286,809$10,555,263
$347,229$2,753,339$2,219,659$2,409,738$972,153($895,373)$74,198
207,695450,216378,6751,085,793422,9371,110,9301,037,060
$554,924$3,203,555$2,598,334$3,495,531$1,395,090$215,557$1,111,258
Fiscal Year
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
200420052006
General fund:
Reserved$23,302$10,484$35,323
Unreserved4,116,8083,339,6443,560,525
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total general fund$4,140,110$3,350,128$3,595,848
All other governmental funds:
Reserved$5,273,705$2,187,884$2,668,322
Unreserved, reported in:
Special revenue funds(652,449)(612,434)(506,084)
Debt service funds1,044,647621,250809,062
Capital projects funds12,367,58912,784,74415,034,968
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total all other governmental funds$18,033,492$14,981,444$18,006,268
Fiscal Year
176
Table 3
2007200820092010201120122013
$35,710$12,159$71,898$77,204$ - $ - $ -
3,943,4363,743,7984,724,2535,265,035 - - -
- - - - 80,76787,34192,638
- - - - - - -
- - - - 132,59574,59450,237
- - - - - - -
- - - - 5,655,6935,914,9746,254,402
$3,979,146$3,755,957$4,796,151$5,342,239$5,869,055$6,076,909$6,397,277
$2,382,354$968,602$1,643,915$1,550,071$ - $ - $ -
411,0901,868,3402,332,6103,190,618 - - -
1,745,4473,242,4713,177,5863,713,774 - - -
15,918,04820,233,69013,173,07411,642,407 - - -
- - - - 2,353,1642,763,8521,750,114
- - - - 3,440,6494,186,0813,879,706
- - - - 12,774,44010,988,36812,229,481
- - - - - - -
- - - - (1,041)(2,782)(39,344)
$20,456,939$26,313,103$20,327,185$20,096,870$18,567,212$17,935,519$17,819,957
Fiscal Year
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200420052006
Revenues:
Taxes$5,937,431$6,702,610$6,977,604
Special assessments671,357520,0311,011,553
Licenses and permits586,957382,339597,557
Intergovernmental 4,687,8664,878,4874,228,308
Charges for services1,442,4383,197,3601,887,314
Fines and forfeitures140,282127,555129,400
Investment earnings695,275432,959648,744
Other revenues176,57590,956251,414
Total revenues14,338,181 16,332,297 15,731,894
Expenditures:
Current:
General government1,576,2331,575,8631,577,484
Public safety3,615,2003,954,0193,887,884
Public works1,311,3901,558,9871,523,170
Culture and recreation1,872,1781,977,7982,074,835
Community development1,576,1614,511,3382,256,122
Capital outlay:
General government - 11,0224,512
Public safety476,51195,12582,986
Public works1,637,5591,912,7384,202,665
Culture and recreation83,95562,700117,909
Community development682,9391,436,724266,144
Debt service:
Principal retirement514,7891,449,035782,273
Interest and fiscal charges652,5182,478,205119,544
Issuance costs29,918 - 25,114
Developer incentives67,866252,176142,451
Total expenditures14,097,217 21,275,730 17,063,093
Revenues over (under) expenditures240,964 (4,943,433)(1,331,199)
178
Table 4
Page 1 of 2
2007200820092010201120122013
$7,444,199$8,263,763$9,218,038$9,631,635$9,683,433$9,948,228$10,416,523
1,137,5762,505,523879,0921,020,334729,327775,714667,719
444,833423,465435,618479,148378,357396,226412,208
4,229,4143,734,8263,777,3554,936,4432,820,4192,314,1952,719,400
1,995,8591,665,6041,513,6671,650,7721,568,3611,663,7821,710,767
160,383142,283139,955188,693170,089161,882148,023
1,271,216984,846456,145469,312562,180275,750(611,794)
170,344296,815102,901273,44670,17363,674104,577
16,853,824 18,017,125 16,522,771 18,649,783 15,982,339 15,599,451 15,567,423
1,616,3741,706,2441,646,9741,926,9822,005,9101,813,4331,791,379
4,122,4114,345,7164,418,4364,968,4335,786,9135,250,8815,171,322
1,640,7131,955,2501,736,9991,731,7002,621,9272,011,5071,644,075
2,238,7932,202,6802,003,6352,194,8531,635,6012,184,2142,233,446
3,077,3104,077,5762,115,6281,351,3681,353,1501,434,3291,205,273
- 5,45345,708 - 115,554209,17613,868
254,7283,499,7138,997,400237,27295,697158,44870,960
1,303,2971,084,959951,2402,925,174642,102557,820896,223
274,8963,269,9862,256,958194,38032,54218,10739,768
306,332287,620139,1181,202,99869,573636,294566,901
792,2731,029,836783,974765,7361,659,022972,0001,559,730
219,065384,293835,167981,281935,405861,139833,890
148,972155,39756,189 - - - -
2,584,85471,341125,857141,005181,638116,072163,972
18,580,018 24,076,064 26,113,283 18,621,182 17,135,034 16,223,420 16,190,807
(1,726,194)(6,058,939)(9,590,512)28,601 (1,152,695)(623,969)(623,384)
Fiscal Year
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200420052006
Other financing sources (uses):
Bonds issued$1,985,000$ - $2,759,550
Bond premium (discount)(5,935) - 26,303
Transfers in838,937553,0701,807,877
Transfers out(370,489)(80,321)(70,000)
Sale of capital assets - 628,65478,013
Total other financing sources (uses)2,447,513 1,101,403 4,601,743
Net change in fund balance$2,688,477($3,842,030)$3,270,544
Expenditures capitalized for governmental
activities reporting purposes2,355,4203,518,3094,592,787
Debt service as a percentage
of noncapital expenditures (A) (B)9.9%22.1%7.2%
Debt service as a percentage
of total expenditures (A) (B)8.3%18.5%5.3%
(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.
(B) Certain information from prior years' presentations have been restated in this table to conform
to the current presentation.
180
Table 4
Page 2 of 2
2007200820092010201120122013
$3,890,000$10,975,000$4,190,000$ - $ - $ - $563,021
(22,108) - - - - - -
570,374377,615458,231407,272411,736298,814326,740
(70,000)(88,941)(99,224)(120,100)(302,881)(110,000)(113,569)
191,897428,24095,781 - 40,99911,31551,997
4,560,163 11,691,914 4,644,788 287,172 149,854 200,129 828,189
$2,833,969$5,632,975($4,945,724)$315,773($1,002,841)($423,840)$204,805
1,896,3637,909,56112,364,5113,637,559955,4681,579,8451,587,720
6.1%8.7%11.8%11.7%16.0%12.5%16.4%
5.4%5.9%6.2%9.4%15.1%11.3%14.8%
Fiscal Year
181
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 (A)Taxable Net TotalEstimated Capacity Value
FiscalOther Captured Tax Area Wide Allocation (C)Tax Capacity Direct TaxMarket as a Percent
Year ResidentialProperty (B)Increment ValueSubtotalContributionDistributionValue RateValueof EMV
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%1,185,782,6001.312%
20129,087,6662,141,140(521,306)10,707,500(710,709)4,059,43214,056,22366.300%1,134,720,2001.239%
20137,692,2881,946,245(489,233)9,149,300(678,105)4,051,49712,522,69280.871%993,984,3001.260%
(A) 2012-2013 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion,
which is new in 2012.
(B)The category "Other Property" is substantially all commercial/industrial property, plus nomimal amounts of railroad and personal property.
( C)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.
Source: Anoka County Auditor's Tax Certificate
182
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES (A) Table 6
Last Ten Fiscal Years
City
FiscalDirectSchoolSpecial
YearRate (A)District 13CountyDistricts ( C)Total
200447.888%22.833%37.617%7.689%116.027%
200547.859%19.918%32.722%8.048%108.547%
200644.736%19.505%29.875%7.679%101.795%
200741.511%17.338%28.626%7.901%95.376%
200843.076%16.088%28.927%9.693%97.784%
200947.430%23.554%29.861%8.699%109.544%
201056.881%24.547%32.696%9.185%123.309%
201161.804%18.842%37.235%9.605%127.486%
201266.300%24.200%38.415%9.932%138.847%
201380.871%27.636%41.443%12.464%162.414%
(A)These property tax rates are stated as a percentage of tax capacity value. Refer to Table 5 for tax capacity value.
Rates stated in terms of 2012 tax capacity values are impacted by the market value homestead exclusion, new in 2012.
By excluding a portion of tax base from taxation, 2012 rates are stated higher for any given levy amount, relative to prior years.
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.
Overlapping Rates (B)
183
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184
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS Table 7
Current Year and Ten Years Ago
Percentage Percentage
Taxof Total CityTaxableof Total City
CapacityTax CapacityCapacityTax Capacity
TaxpayerValue (A) & (B)RankValueValue (A)RankValue
Medtronic Inc$154,15811.60%$171,96011.50%
Centro Bradley SPE 5 LLC120,71821.25%N/AN/AN/A
Crestview Corporation95,53230.99%61,18870.53%
Stadium Village Properties LLC93,18040.97%N/AN/AN/A
Hart Lake Apartments LLC90,57050.94%N/AN/AN/A
Columbia Park Properties85,63660.89%83,84240.73%
Columbia Heights Center LLC70,61670.73%67,25060.58%
Xcel Energy69,29680.72%53,69880.47%
Health Care Reit Inc68,18490.71%N/AN/AN/A
Lynde Investment Co MN Partnership67,018100.70%53,209100.46%
Jeff's Bobby & Steve's Auto WorldN/AN/AN/A53,54890.47%
Consolidated Realty of MplsN/AN/AN/A91,72430.80%
Equity Partners LLCN/AN/AN/A77,14050.67%
Bradley Operating LPN/AN/AN/A127,65821.11%
Total$914,9089.49%$841,2177.32%
Total All Property $9,638,533$11,498,948
(A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5.
(B) 2013 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion effective 2012.
Source: Anoka County Auditor's Tax Certificate.
20042013
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
CountyState Market
FiscalGrossAdjustmentsValue HomesteadAdjusted
YearTax Levy (A)to Levy (B)Credit (A) Tax Levy
2004$5,447,260$2,628($588,271)$4,861,617
20056,102,537152(568,479)5,534,210
20066,347,537(160)(517,322)5,830,055
20076,500,613(189)(471,660)6,028,764
20087,045,370(74)(451,019)6,594,277
20097,702,363(161)(447,755)7,254,447
20109,075,425(302)(535,625)8,539,498
20119,426,760(141)(608,241)8,818,378
20129,136,706(54) - 9,136,652
20139,536,888(182) - 9,536,706
(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.
Source: Anoka County Auditor's Tax Certificate. Also Anoka County Tax Settlement Statements for the City of Columbia
Heights.
(A) Under state law for years prior to 2012, the stated amount of the annual property tax levy adopted by the City Council included both the actual property
tax plus an amount termed the "state market value homestead credit." The state market value homestead credit was determined by a formula in state law.
To the extent this market value homestead credit was paid by the State of Minnesota and received by the City in any given year, it was reported as
intergovernmental revenue in the City's financial statements. Only the portion of the gross levy that was actually levied upon property is reported as
property tax revenue in the City's financial statements.
This table only includes tax levies for the City of Columbia Heights, the primary government. It does not include tax levies for the special taxing district of
the Columbia Heights HRA, a component unit of the City.
186
Table 8
Collections inTotal Collections to Date
Collection% of AdjustedSubsequent% of Adjusted
AmountTax LevyYearsAmountTax Levy
$4,760,78897.93%$53,838$4,814,62699.03%
5,412,17897.79%86,0855,498,26399.35%
5,672,90997.30%129,0515,801,96099.52%
5,842,54096.91%158,3756,000,91599.54%
6,400,60497.06%158,2086,558,81299.46%
7,021,60596.79%169,8237,191,42899.13%
8,279,06596.95%131,8438,410,90898.49%
8,578,78497.28%98,6278,677,41198.40%
8,932,56497.77%96,6698,932,56497.77%
9,379,87398.36%N/A9,379,87398.36%
Collected Within The Fiscal Year For Which
Levied
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneralGeneral
ObligationObligationObligation
Bonds RepaidBondsBonds WithTax IncrementTotal
FiscalOnly WithWith PledgedPledged SpecialRevenueGovernmental
YearGeneral TaxesTax IncrementAssessmentsBondsActivities
2004$ - $3,264,704$1,773,623$ - $5,038,327
2005 - 1,985,0001,604,292 - 3,589,292
2006 - 1,385,0004,181,569 - 5,566,569
20071,000,000775,0003,999,2962,890,0008,664,296
200811,000,000150,0004,569,4602,890,00018,609,460
200913,940,000580,0004,614,4862,881,00022,015,486
201013,855,000580,0003,976,7502,838,00021,249,750
201112,698,431580,0003,522,2992,790,00019,590,730
201213,090,000580,0002,211,7302,737,00018,618,730
201312,685,000525,0001,733,0212,679,00017,622,021
(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.
188
Table 9
Business-Type ActivitiesAll Activities
GeneralLiquor
ObligationFacility
Bonds WithLeaseTotalPercentage
Pledged UtilityRevenueBusiness-TypeTotalof PersonalPer
RevenuesBondsActivitiesAll DebtIncome (A)Capita (A)
$2,486,377$ - $2,486,377$7,524,7041.9%405
2,220,708 - 2,220,7085,810,0001.3%318
3,248,431 - 3,248,4318,815,0002.0%482
2,950,7045,040,0007,990,70416,655,0003.8%919
2,590,5405,040,0007,630,54026,240,0006.0%1,447
2,540,5125,040,0007,580,51229,595,9986.7%1,612
2,128,2484,900,0007,028,24828,277,9986.0%1,450
1,304,2704,750,0006,054,27025,645,0005.3%1,315
1,123,2704,595,0005,718,27024,337,0004.8%1,240
2,436,9794,430,0006,866,97924,489,0005.1%1,245
189
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE
Last Ten Fiscal Years
Subtotal of
GovernmentalLess:GovernmentalPercentage
General GovernmentalNet Generalof Estimated
FiscalObligationRestricted forObligationProperty
YearBondsRepaymentBonded DebtValue (B)
2004$5,038,327$1,044,647$3,993,6800.37%
20053,589,292621,2502,968,0420.25%
20065,566,569809,0624,757,5070.37%
20075,774,2961,745,4474,028,8490.29%
200815,719,4603,242,47112,476,9890.86%
200919,134,4862,952,52016,181,9661.14%
201018,411,7503,713,77414,697,9761.13%
201116,800,7302,162,11914,638,6111.23%
201215,881,7301,559,98514,321,7451.26%
201314,943,0211,000,83113,942,1901.40%
(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 strong 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.
190
Table 10
Business-typeSubtotal of
GeneralLess:Business-type
Obligation BondsBusiness-typeNet GeneralPercentageTotal
With PledgedRestricted forObligationof UtilityNet GeneralPer
Utility RevenuesRepaymentBonded DebtRevenueBonded DebtCapita (A)
$2,486,377$337,389$2,148,98849.8%$6,142,668330
2,220,708375,6521,845,05640.6%$4,813,098264
3,248,431457,7942,790,63755.3%$7,548,144413
2,950,704443,2972,507,40747.4%$6,536,256361
2,590,540449,9312,140,60938.9%$14,617,598806
2,540,512485,8832,054,62936.1%$18,236,595993
2,128,248287,4531,840,79530.8%$16,538,771848
1,304,270273,9661,030,30416.9%$15,668,915801
1,123,270226,292896,97813.9%$15,218,723632
2,436,97980,1912,356,78836.5%$16,298,978829
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2013
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental Unit (A)OutstandingApplicable (B)Debt
Debt repaid with property taxes:
Anoka County$131,210,0004.6474%$6,097,854
Independent School District 1319,895,000 69.6933%13,865,482
Metropolitan Council 189,450,000 0.4224%800,237
Subtotal - overlapping debt 20,763,572
City direct debt - governmental activities 17,622,021
Total direct and overlapping debt $38,385,593
(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
192
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2013
Taxable market value of property ( C)$993,984,300
Debt limitation percentage (A)3%
Debt limit29,819,529
Net debt applicable to limit (B)12,685,000
Legal debt margin$17,134,529
Legal debt margin as a percentage of limit57.46%
Legal Debt Margin Calculation for Fiscal Years 2004 Through 2012
Legal Debt
Net DebtLegalMargin as a
FiscalDebtApplicable toDebtPercentage
YearLimitLimitMarginof Debt Limit
200317,102,916 - 17,102,916100.00%
200419,133,440 - 19,133,440100.00%
200521,831,836 - 21,831,836100.00%
200624,490,232 - 24,490,232100.00%
200727,255,6601,000,00026,255,66096.33%
200843,388,27111,000,00032,388,27174.65%
200942,618,12913,940,00028,678,12967.29%
201038,979,70513,855,00025,124,70564.46%
201135,278,49412,698,43122,580,06364.01%
201229,067,31310,275,00018,792,31364.65%
(A)M.S.A. Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in
Sections 475.51 to 475.74, "no municipality, except a school district or a city of the first class, shall incur
or be subject to a net debt in excess of 3% of the market value of taxable property in the municipality."
(B)M.S.A. Section 475.51 (definitions) Subdivision 4. "Net debt" means the amount remaining after
deducting from its gross debt the amount of current revenues which are applicable within the current
fiscal year to the payment of any debt and the aggregate of the principal of the following:
1.Obligations issued for improvements which are payable wholly or partly from the proceeds of
special assessments levied upon property specially benefited thereby, including those which are
general obligations of the municipality issuing them, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of the special assessments.
2.Warrants or orders having no definite or fixed maturity.
3.Obligations payable wholly from the income from revenue producing conveniences.
4.Obligations issued to create or maintain a Permanent Improvement Revolving Fund.
5.Obligations issued for the acquisition and betterment of public water works systems and public
lighting, heating or power systems, and of any combination thereof or for any other public
convenience from which a revenue is or may be derived.
6.Not applicable.
7.Amount of all money and face value of all securities held as a Debt Service Fund for the
extinguishment of obligations other than those deductible under this subdivision.
8.All other obligations which under the provisions of law authorizing their issuance are not to be
included in computing the net debt of the municipality.
( C)Beginning in the year 2012, state statute excludes a portion of the market value of eligible homestead property
from taxation. This is termed the Market Value Homestead Exclusion. For purposes of the state statutes
referenced in notes (A) and (B) above that set the legal debt limit/margin, the Minnesota Department of Revenue
interprets "the market value of the taxable property in the City" as net of any market value homestead exclusion.
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT Table 13
Last Ten Fiscal Years
2004 - 2007200820092010201120122013
Economic Development Authority
Tax Increment Revenue Bonds Series 2007:
Tax increment revenue from applicable parcels $ - $243,159$267,142$241,854$211,533$175,832$170,496
Intergovernmental:
Market Value TIF credit - 14,002 19,55428,11834,351 - -
Net available revenue $0$257,161$286,696$269,972$245,884$175,832$170,496
Debt service:
Principal - - 9,00043,00048,00053,00058,000
Interest - 158,325 152,363151,063148,788146,263143,488
Total debt service $0$158,325$161,363$194,063$196,788$199,263$201,488
Coverage N/A 162%178%139%125%88%85%
Economic Development Authority
Lease Revenue Bonds Series 2007B:
Annual appropriation of liquor net revenues $ - $210,264$497,200$364,000$390,000$386,000$390,000
Investment income - 8,638 71 1,105 1,500 1,000 (2,500)
Issuance costs and administration (expense)(A) - (113,491)(2,000)(2,556)(2,000)(2,000)(2,332)
Net available revenue $0$105,411$495,271$362,549$389,500$385,000$385,168
Debt service:
Principal $ - $ - $ - $140,000$150,000$155,000$165,000
Interest - 208,264 240,305237,155230,630223,768213,178
Total debt service $0$208,264$240,305$377,155$380,630$378,768$378,178
Coverage N/A 51%206%96%102%102%102%
(A)Restated issuance costs
Note: Details regarding the City's outstanding debt can be found in Note 6 of the financial statements.
Fiscal Year
194
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
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 8.00%
2010 19,496 472,037,152 24,212 7.40%
2011 19,568 487,243,200 24,900 6.50%
2012 19,667 507,408,600 25,800 5.60%
2013 19,667 478,616,112 24,336 4.80%
Sources are as follows:
Population: Data for the years 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.
Data for 2011-2013 is estimated by the US Census.
Per Capita Income: Data for 2004 estimated as equal to per capita income reported in the 2000 U.S. Census.
Data for 2005-2013 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.
195
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196
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL EMPLOYERS Table 15
Current Year and Nine Years Ago
Percentage ofPercentage of
Total AnokaTotal Anoka
County (A)County (A)
Principal Employers Within CityEmployeesRankEmploymentEmployeesRankEmployment
Medtronic Inc60010.33%53210.30%
Independent School District 1348420.26%41520.23%
Crestview Lutheran Home24530.13%22630.13%
City of Columbia Heights20840.11%17540.10%
Fairview - Columbia Heights Clinic12050.07%7070.04%
Unique Thrift Store7570.04%N/AN/AN/A
Rainbow Foods6560.04%12050.07%
Invest Cast Inc6080.03%5490.03%
La Casita Mexican Restaurant6090.03%N/AN/AN/A
Bobby & Steve's Auto World53100.03%N/AN/AN/A
US Post OfficeN/AN/AN/A45100.03%
NEI College of TechnologyN/AN/AN/A7660.04%
SIS EnterprisesN/AN/AN/A6080.03%
Total 1,9701.08%1,7731.00%
(A) Employment data is not compiled for individual cities within Minnesota counties.
(B) 2004 data was not available
Sources:
The employee count for the City of Columbia Heights is from Table 16. 2013 data for other employers was
compiled from ReferenceUSA, written and telephone survey (May 2013), and the Minnesota Department of
Employment and Economic Development
2003 (B)2013
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program2004200520062007
General government
Mayor/council 5555
Administration 5544
Finance 12 12 12 13
Public safety:
Police 30 30 31 31
Fire 39 35 36 33
Public works 18 16 17 16
Culture and recreation:
Library 19 21 22 22
Parks 5555
Recreation 13 15 16 16
Community development 6777
Water 4445
Sewer 4444
Refuse - - - -
Storm sewer - - - -
Liquor 37 37 37 42
Total 197 196 200 203
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,
198
Table 16
200820092010201120122013
555555
4 5 10 11 11 9
13 14 13 14 13 13
34 35 36 35 35 35
29 31 30 32 32 33
17 18 17 16 16 15
25 21 19 21 21 23
555555
17 14 13 16 16 15
665544
444444
333334
- - - - - -
1 1 1 1 1 1
38 40 41 39 39 42
201 202 202 207 205 208
Employees as of December 31,
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2004200520062007
General government:
Resolutions approved by City Council (A)8792234198
Ordinances adopted by City Council7201412
Public safety:
Police:
Part I crimes (B)1,2291,2801,1671,246
Part II crimes (B)3,4353,4963,1843,144
Fire:
Emergency medical calls (B)1,6531,8731,8061,888
Fire calls (B)483581387445
Inspections & Related Actions (B)2,0772,3793,7094,603
Public works:
Street paving and patching (tons of asphalt)1,2714097101,910
Street sweeping (tons of debris)1,064658637648
Trees removed261296188357
Culture and recreation:
Library:
Items in collection73,10568,22670,35471,594
Circulation116,533115,598119,593125,222
Reference inquiries14,67017,22515,10613,715
Parks and recreation:
Athletics participants (C)2,1391,9881,6541,537
Other programs, estimated attendance (D)9,0009,0009,0008,000
Number of paid room rentals134164191185
Community development:
Number of business licenses issued307327342306
Number of building permits issued (E)1,1591,3041,7011,313
Construction value of permits issued$50,322,414(F)$13,041,878$26,798,827$22,230,118
Water:
Consumption (thousands of gallons)538,358527,621529,581538,844
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 30)526,010514,810536,920495,580
Miles of line cleaned/rodded/root-sawed28283927
Refuse:
Refuse (tons)8,3488,8638,3976,587
Recycling (tons)1,7831,8631,7211,522
Yardwaste (tons)862892645654
Storm sewer:
No operating indicators availablenot availnot availnot availnot avail
Liquor:
Number of units soldnot avail798,900758,000768,000
(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.
Function/Program
Fiscal Year
200
Table 17
2008 2009 2010 2011 2012 2013
247 170 115 159 159 94
26 12 12 15 5 3
1,098 882 768 756 743not avail
2,966 1,275 1,683 1,576 1,408not avail
2,093 1,694 1,664 1,722 1,839 1,942
385 660 846 764 752 852
6,955 3,724 5,720 6,073 5,413 5,249
1,415 1,033 1,054 869 1,029 224
420 581 638 712 350 574
175 121 180 180 157 284
72,420 69,702 72,055 71,303 72,985 76,658
126,271 120,705 131,885 125,051129,624121,827
13,793 17,771 14,352 16,601 14,547 16,068
1,510 1,602 1,500 4,299 4,232 5,534
8,000 8,000 8,000 8,000 9,000 10,485
190 210 160 177 135 139
363 379 393 334 323 346
1,113 1,187 1,351 1,290 1,058 1,303
$21,917,792$13,376,732$14,481,712 $7,986,467$7,203,199$7,388,271
518,791 518,299 516,068 454,223495,870461,520
511,090 437,520 444,820 485,000455,210455,310
29 39 26 25 26 33
7,323 7,239 6,770 6,789 6,563 6,684
1,318 1,036 1,699 1,605 1,610 1,690
727 773 1,100 1,270 1,270 1,169
not avail not avail not avail not availnot availnot avail
920,121 1,029,139 1,028,160 1,060,1501,103,7901,045,188
Fiscal Year
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Eleven Fiscal Years
Function/Program2004200520062007
General government:
City hall square footage 28,53028,53028,53028,530
Public safety:
Police Stations 1 1 1 1
Fire Stations 1 1 1 1
Public Safety Bldg square footage Note A Note ANote A Note A
Public works:
Office and shop square footage 31,075 31,07531,075 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 22,00022,000 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.
202
Table 18
200820092010201120122013
28,53028,53028,53028,53028,53028,530
111111
111111
Note ANote A47,08847,08847,08847,088
31,075 31,075 31,075 31,07531,07531,075
333333
666666
62 62 62 62 62 62
19 19 19 19 19 19
111111
7,896 7,896 7,896 7,896 7,896 7,896
13 13 13 13 13 13
11 11 11 11 11 11
- 12,726 12,726 12,72612,72612,726
22,000 22,000 22,000 22,00022,00022,000
145 145 145 145 145 145
66 66 66 66 66 66
59 59 59 59 59 59
111111
34 34 34 34 34 34
333333
- - - - - -
Fiscal Year
203
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204
IV. OTHER REQUIRED REPORTS SECTION
205
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206
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
MINNESOTA LEGAL COMPLIANCE
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United
States of America, and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United Stated, the financial
statements of the governmental activities, the business-type activities, each major fund, and
the aggregate remaining fund information of the City of Columbia Heights, Minnesota
as of and for the year ended December 31, 2013, and the related notes to the financial
statements, and have issued our report thereon dated June 12, 2014.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the
State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, miscellaneous provisions and tax increment
financing. Our audit considered all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the
City of Columbia Heights, Minnesota failed to comply with the provisions of the Minnesota
Legal Compliance Audit Guide for Political Subdivisions, except as described at finding
2013-1. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may
have come to our attention regarding the City of Columbia Heights, Minnesota’s
noncompliance with the above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
HLB TAUTGES REDPATH, LTD.
June 12, 2014
207
2013-1 Deficiencies in Collateral for Deposits
Criteria: Minnesota Statute 118A provides certain specific collateral requirements for
deposits, including a requirement that collateral be provided in an amount equal to or
greater than 110% of uninsured deposits at a financial institution.
Condition: At July 31, 2013, the City held deposits in the amount of $4,568,624 in its
checking account, $250,000 of these deposits were insured by the FDIC. Collateral required
on the uninsured deposits was $4,775,486 ($4,318,624 x 110%). The market value of
collateral provided at July 31, 2013 was $3,600,000, resulting in a collateral deficiency of
$1,175,486.
Cause: The City temporarily and inadvertently misapplied the FDIC deposit insurance limit
to each City account at one financial institution, instead of applying the FDIC limit to the
total of all City accounts at that institution. A contributory factor in this misunderstanding
was the circumstance that FDIC deposit insurance limits have changed in recent years.
Effect: Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits
may not be returned to it. Insufficient collateral increases this risk.
Recommendation: We recommend the City verify sufficient collateral is maintained by the
bank in order to comply with Minnesota Statute 118A.03 and reduce its custodial credit risk.
Views of Responsible Officials and Planned Corrective Action: This particular financial
institution reviews and adjusts collateral approximately every 30 to 90 days. To supplement
that procedure, the City reviews collateral coverage daily or weekly as conditions require.
When the City’s review indicates an adjustment is required, the City either requests that the
institution acquire additional collateral, or the City transfers sufficient deposits to other
institutions.
The City judges that these procedures are adequate to detect any noncompliance with
Minnesota Statute 118A in a timely manner, as the City discovered and corrected the above
condition approximately one month following its onset. The City also judges that these
procedures are adequate to reasonably prevent noncompliance with Minnesota Statute 118A,
as the majority of the City’s deposits were collateralized during this period of
noncompliance.
208
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
INDEPENDENT AUDITOR’S 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
To the Honorable Mayor and
Members of the City Council and Management
City of Columbia Heights, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of
the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 2013, and
the related notes to the financial statements, which collectively comprise the City of Columbia
Heights, Minnesota’s basic financial statements, and have issued our report thereon dated
June 12, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Columbia Heights, Minnesota’s internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Columbia Heights, Minnesota’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Columbia Heights,
Minnesota’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
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City of Columbia Heights, Minnesota
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters
Page 2
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Columbia Heights,
Minnesota’s financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
HLB TAUTGES REDPATH, LTD.
June 12, 2014
210
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100-Percent Employee-Owned
HLB Tautges Redpath is a member of HLB International, a world-wide network of independent accounting firms and business advisors.
REPORT ON SUPPLEMENTARY INFORMATION –
FINANCIAL DATA SCHEDULE
To the Honorable Mayor and
Members of the City Council
City of Columbia Heights, Minnesota
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of
Columbia Heights, Minnesota as of and for the year ended December 31, 2013, and have
issued our report thereon dated June 12, 2014. Our audit was performed for the purpose of
forming opinions on the financial statements that collectively comprise the City of Columbia
Heights, Minnesota’s basic financial statements.
The accompanying Financial Data Schedule is presented for purposes of additional analysis
as required by the U.S. Department of Housing and Urban Development and is not a required
part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records
used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of the City of Columbia Heights,
Minnesota and federal awarding agencies and pass-through entities and is not intended to be,
and should not be, used by anyone other than those specified parties.
HLB TAUTGES REDPATH, LTD.
June 12, 2014
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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, 2013
Line
ItemAccount DescriptionTotal Projects
Assets:
Current assets:
111 Cash - unrestricted $62,076
114 Cash - tenant security deposits18,625
100 Total cash 80,701
Accounts and notes receivable:
122 Accounts receivable - HUD other projects4,564
126 Accounts receivable - tenants2,670
120 Total receivables, net of allowance7,234
Investments:
131 Investments - Unrestricted898,374
150 Total current assets 986,309
Noncurrent assets:
Capital assets:
161 Land 177,375
162 Buildings 3,338,829
163 Furniture, equipment and machinery - dwellings297,466
164 Furniture, equipment and machinery - administration8,842
166 Less: accumulated depreciation(2,702,235)
167 Construction in progress 5,976
160 Total capital assets, net of accumulated depreciation1,126,253
180 Total noncurrent assets1,126,253
190 Total assets 2,112,562
Liabilities:
Current liabilities:
312 Accounts payable <= 90 days$4,737
333 Accounts payable - other governments24,638
341 Tenant security deposits 17,841
342 Unearned revenue 3,966
345 Other current liabilities 17,402
310 Total current liabilities68,584
350 Total noncurrent liabilities0
300 Total liabilities 68,584
Net Position:
508.4 Net investment in capital assets1,126,253
512.4 Unrestricted net position 917,725
513 Total net position$2,043,978
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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, 2013
Public HousingPublic Housing
OperatingCapital Fund
Line SubsidyProgram
ItemAccount Description14.85014.872Total Projects
Revenue:
703 Net tenant rental revenue$353,581$ - $353,581
704 Tenant revenue - other4,620 - 4,620
706 HUD PHA grants139,078 - 139,078
715 Other revenue7,349 - 7,349
711 Investment income -unrestricted3,168 - 3,168
700 Total revenue507,796 0 507,796
Expenses:
911 Administrative salaries25,500 - 25,500
912 Auditing fees2,304 - 2,304
913 Outside management fees162,288 - 162,288
914 Advertising and marketing65 - 65
916 Office Expenses17,173 - 17,173
917 Legal expense9,450 - 9,450
919 Other expense1,341 - 1,341
931 Water 8,096 - 8,096
932 Electricity48,613 - 48,613
933 Gas 33,864 - 33,864
936 Sewer 3,725 - 3,725
938 Other utilities expense14,108 - 14,108
942 Ordinary maintenance and operations - materials and other5,866 - 5,866
943 Ordinary maint. and operations contracts - HVAC24,006 - 24,006
943 Ordinary maint. and operations contracts - snow removal3,192 - 3,192
943 Ordinary maint. and operations contracts - elevator21,408 - 21,408
943 Ordinary maint. and operations contracts - grounds2,705 - 2,705
943 Ordinary maint. and operations contracts - unit turnaround12,403 - 12,403
943 Ordinary maint. and operations contracts - electrical - - -
943 Ordinary maint. and operations contracts - plumbing - - -
943 Ordinary maint. and operations contracts - extermination670 - 670
943 Ordinary maint. and operations contracts - janitorial458 - 458
943 Ordinary maint. and operations contracts - routine maintenance5,265 - 5,265
943 Ordinary maint. and operations contracts - miscellaneous887 - 887
952 Protective services4,955 - 4,955
961 Insurance premiums17,170 - 17,170
962 Other general expenses1,808 - 1,808
963 Payments in lieu of taxes25,183 - 25,183
969 Total operating expenses452,503 0 452,503
974 Depreciation104,429104,429
900 Total expenses556,932 0 556,932
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)($49,136)$0($49,136)
Memo account information:
1103 Beginning equity$2,093,114$ - $2,093,114
1120 Unit months available1,212 - 1,212
1121 Number of unit months leased1,192 - 1,192
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE - STATEMENT AND CERTIFICATION OF ACTUAL MODERNIZATION COSTS
For The Year Ended December 31, 2013
FY 2010FY 2011FY 2012FY 2013
MN 46P105501-10MN 46P105501-11MN 46P105501-12MN 46P105501-12
A.The actual modernization costs are as follows:
Funds approved$110,976$92,207$84,944$81,917
Funds (expended)(110,976)(75,706) - -
Excess of funds approved (expended)$0$16,501$84,944$81,917
Funds advanced - HUD CFP Grants$110,976$75,706$ - $ -
Funds (expended):
In prior years(110,976)(75,706)
In current year - - - -
Excess of funds advanced (expended)$0$0$0$0
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