HomeMy WebLinkAbout2014 CAFRCITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
PREPARED BY:
FINANCE DEPARTMENT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2014
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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 134
Statement of ActivitiesStatement 236
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 338
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 440
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 543
Statement of Net Position - Proprietary FundsStatement 644
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 746
Statement of Cash Flows - Proprietary FundsStatement 848
Statement of Fiduciary Net Position - Fiduciary FundsStatement 952
Notes to Financial Statements 53
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
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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
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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
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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
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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 212
Financial Data Schedule - Statement and Certification of Actual Modernization Costs214
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2014
Name Official Title
Mayor and Council:
Gary L. PetersonMayor
John Murzyn, Jr.Councilmember
Donna SchmittCouncilmember
Bruce NawrockiCouncilmember
Robert A. WilliamsCouncilmember
Administration:
Walter FehstCity Manager
Kelli BourgeoisAssistant 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
Joe HogeboomCommunity Development Director
Keith WindschitlRecreation Services Director
Larry ScottLiquor Operations Manager
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City of Columbia Heights
Organizational Chart
2014
Mayor:
Gary L. Peterson Council members:
John Murzyn
Bruce Nawrocki
Donna Schmitt
Robert Williams
City Manager:
Walter Fehst
Commissions & Boards:
Charter
EDA
HRA
Traffic
Telecommunications
Planning & Zoning
Park & Recreation
Library
Public ArtsADMINISTRATION
Human Resources Director / Assistant
to the City Manager:Kelli Bourgeois
City Clerk
Administrative Assistant – Human Resources
POLICE (Administered by Mayor)
Police Chief: Scott Nadeau
Office Supervisor
Police Captain
Sergeants (5)
Patrol Officers (20)
Community Service Officers (1 FT) (3 PT)
Reserves
Police IS Specialist
Secretary II-A (2)
Clerk Typist
FIRE/EMERGENCY MANAGEMENT
Fire Chief:Gary Gorman
Assistant Fire Chief
Fire Captains (3)
Secretary II (PT)
Clerk Typist II (PT)
Journeymen (3)
On-Call Firefighters (31)
PUBLIC WORKS
Public Works Director/City Engineer: Kevin Hansen
Secretary II-A
Assistant City Engineer
Administrative Assistant
Assessing Clerk (PT)
Engineering Technician IV (2)
Engineering Technician III
Street & Park Superintendent
Utility Superintendent
Foreman (Parks, Sewer & Water, Streets) (3)
Maintenance Worker (16)
Vehicle Maintenance Supervisor
Maintenance III -Mechanic
Maintenance III -Bodyman/Painter
Facility Maintenance Supervisor
Custodian I (3 PT)
Custodian II (PT)
FINANCE
Finance Director/Treasurer:Joseph Kloiber
Secretary II
Assistant Finance Director
Accounting Coordinator
Payroll Accountant
Budget Coordinator
Accounting Clerk II: Utility
Accounting Clerk I: Utility
Accounting Clerk I
Receptionist/Cashier (PT)
Liquor Operations Manager
Assistant Liquor Store Manager (5)
FT Store Supervisor
PT Store Supervisor (3)
Retail Clerk (30 PT)
IS Director
Assistant IS Director
IS Technician
COMMUNITY DEVELOPMENT
Community Development Director:Joe Hogeboom
Assistant Community Development Director
Building Official
Secretary II: Permits
Associate Planner
LIBRARY
Library Director:Renee Dougherty
Clerk-Typist II (2)
Library Clerk (1 PT)
Library Supervisor (4 PT)
Page (10 PT)
Library Aide (PT)
Adult Services Librarian
Children's Librarian
RECREATION
Recreation Director: Keith Windschitl
Clerk/Typist II
Senior Citizen Coordinator
Program Coordinator
Recreation Clerk (PT)
Custodian II (9 PT)
Custodian I (PT)
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Service Is Our Business
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
City of Columbia Heights
Finance Department
590 40th Avenue N.E. Columbia Heights, MN 55421-3878 Office (763) 706-3600 TDD (763) 706-3692 Fax (763) 706-3637
June 5, 2015
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, 2014, 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.
Redpath and Company, Ltd., Certified Public Accountants, have issued an unmodified (“clean”)
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2014. 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 19,674. 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 2014, 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 challenges of an aging infrastructure and dependency on state aid to
supplement local revenues. 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, roadways, alleys,
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. Utility system improvements are funded by the utility rate
structure. In some cases, the City issues bonds to initially finance the project, repaying the bonds
with special assessments and/or utility revenues 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 from
historical levels, and sometimes reduced retroactively. To provide for more stable operations,
the City’s management has developed a multi-year financial plan that gradually phases out the
use of state aid in the City’s operating budget with moderate increases in property taxes.
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Under the plan, available state aid is essentially treated as a one-time revenue source and is used
for capital projects and equipment that would otherwise be purchased with property taxes. The
current City Council has reached consensus of opinion in support of the plan. Implementation of
this plan is, of course, dependent on the 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, 2014, 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 currently being marketed and new homes
being built.
In 2014, a significant majority of the City’s voters approved by referendum the issuance of up to
$7 million in general obligation bonds for the construction of a new municipal library building
on a redevelopment site previously purchased by the Economic Development Authority. The
bonds were issued in February 2015 with construction expected to begin in 2015.
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, 2013. 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.
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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 program for review.
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, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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, 2014, 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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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, 2014, 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.
Report on Summarized Comparative Information
We have previously audited the City of Columbia Heights, Minnesota’s 2013 financial statements,
and we expressed an unmodified audit opinion on the respective 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 in our report dated June 12,
2014. In our opinion, the summarized comparative information presented herein as of and for the
year ended December 31, 2013 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 5,
2015, 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.
REDPATH AND COMPANY, LTD.
Saint Paul, Minnesota
June 5, 2015
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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, 2014. 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, 2014, by $71,502,280 (net position).
Of this amount, $30,427,108 or 43% is unrestricted net position which may be used to meet the
City’s ongoing obligations to citizens and creditors.
During 2014, the City’s total net position increased by $2,196,772 or approximately 3% from the
prior year. $1,352,384 of this increase was from governmental activities, and $844,338 of this
increase was from the City’s business-type activities.
As of December 31, 2014, the combined fund balances of the City’s governmental funds were
$26,783,428. This is an increase of $2,566,192 or 11% from the prior year. Also, as of December
31, 2014, approximately 86% of the combined fund balances of the City’s governmental funds were
available for use within the City’s constraints and policies.
As of December 31, 2014, unassigned fund balance in the General fund was $7,248,380 or 98% of
the total fund balance in the General fund. The City’s minimum fund balance policy for the General
fund, detailed both in the notes to the financial statements and the letter of transmittal, was met at
December 31, 2014.
During 2014, the City’s total bonded debt decreased by $867,000 to an end of year total of
$23,622,000, due to principal payments on existing bonded debt. No bonds were issued in 2014.
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 2014 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
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Management’s Discussion and Analysis
Capital equipment replacement general government fund
Capital improvements-PIR fund
Capital improvements development fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general and certain special revenue funds listed
in the notes to the financial statements. A budgetary comparison statement has been provided for
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.
19
Management’s Discussion and Analysis
Other information. Required supplementary information for the General fund, and on funding
progress for retiree health benefits, is presented as Statement 10 and Statement 11 respectively, 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, 2014, the City’s assets exceeded its liabilities by $71,502,280.
$36,778,514 or 51% 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 are reported net of related debt, the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
In addition, a portion of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position,
$30,427,105 or 43% may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2014, 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.
2014 2013 2014 2013 2014 2013
Assets:
Current and other assets $33,274,009$30,662,634$11,125,437$11,108,045$44,399,446$41,770,679
Capital assets 39,187,07840,986,51115,342,18615,148,13254,529,26456,134,643
Total assets $72,461,087 $71,649,145 $26,467,623 $26,256,177 $98,928,710 $97,905,322
Liabilities:
Current liabilities $2,185,473$2,012,675$1,609,947$1,719,533$3,795,420$3,732,208
Noncurrent liabilities 17,316,51018,029,7506,314,5006,837,80623,631,01024,867,556
Total liabilities $19,501,983$20,042,425$7,924,447$8,557,339$27,426,430$28,599,764
Net position:
Net invested in capital assets $26,049,057$27,358,490$10,729,457$10,365,407$36,778,514$37,723,897
Restricted 3,752,8373,947,367543,822643,3204,296,6594,590,687
Unrestricted 23,157,21020,300,8637,269,8976,690,11130,427,10726,990,974
Total net position $52,959,104$51,606,720$18,543,176$17,698,838$71,502,280$69,305,558
TotalsGovernmental Activities Business-Type Activities
20
Management’s Discussion and Analysis
Changes in net position - governmental activities. During the current year, governmental activities
increased the City’s net position by $1,352,384 or 2%. Expenses of the governmental activities
increased $354,103 or 2% over the prior year, which reflects the City’s planned long-term rate of
growth, which approximates inflation. Revenues and net transfers to the governmental activities
increased $1,632,289 or 10% over the prior year. Significant elements of this increase in revenues
include:
2014 market changes in interest rates reversed a 2013 temporary decline in the fair value of
interest-bearing investments. This element of 2014 investment income was a gain of
$798,724; whereas the prior year decline was $934,338. We note that under the City’s
investment policy, interest-bearing investments are held to maturity to address such
temporary fluctuations in fair value.
Unrestricted grants increased by $496, 291 or 50% over the prior year. This primarily
reflects an increase in State of Minnesota aid to local governments, which is the only
significant unrestricted grant the City receives.
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues:
Charges for services $2,258,503 $2,270,998 $15,100,943 $15,581,195$17,359,446$17,852,193
Operating grants and
contributions 993,119 801,344 91,421 84,871 1,084,540 886,215
Capital grants and
contributions 606,479 1,881,933 47,369 - 653,848 1,881,933
General revenues:
Property taxes 10,310,867 9,827,378 - - 10,310,867 9,827,378
Tax increment collections 463,837 532,524 - - 463,837 532,524
Grants and contributions not
restricted to specific programs 1,496,804 1,000,513 - - 1,496,804 1,000,513
Unrestricted investment earnings 1,091,263 (664,694) 252,360 (152,300) 1,343,623 (816,994)
Gain on sale of capital assets
used in governmental activities - 11,842 - - - 11,842
Total revenues 17,220,872 15,661,838 15,492,093 15,513,766 32,712,965 31,175,604
Expenses:
General government 2,104,0251,976,207 - - 2,104,0251,976,207
Public safety 5,801,7475,683,769 - - 5,801,7475,683,769
Public works 3,052,8442,843,102 - - 3,052,8442,843,102
Culture and recreation 2,565,7552,553,760 - - 2,565,7552,553,760
Community development 1,943,5762,010,040 - - 1,943,5762,010,040
Interest on long-term debt 761,967808,933 - - 761,967808,933
Water - - 2,336,4752,371,4142,336,475 2,371,414
Sewer - - 1,789,2601,538,9701,789,260 1,538,970
Refuse - - 1,695,9971,628,9661,695,997 1,628,966
Storm sewer - - 315,809307,876315,809 307,876
Liquor - - 8,148,7888,341,3098,148,788 8,341,309
Total expenses 16,229,914 15,875,811 14,286,329 14,188,535 30,516,243 30,064,346
Increase (decrease) in
net position before transfers 990,958 (213,973) 1,205,764 1,325,231 2,196,722 1,111,258
Tr ansfers 36 1 ,426 288,171 (361,426) (288,171) - -
Increase in net position 1,352,384 74,198 844,338 1,037,060 2,196,722 1,111,258
Net position - January 1 51,606,720 51,532,522 17,698,838 16,661,778 69,305,558 68,194,300
Net position - December 31 $52,959,104$51,606,720$18,543,176$17,698,838$71,502,280$69,305,558
Business-Type Activities Totals
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION
Governmental Activities
21
Management’s Discussion and Analysis
Property taxes from all sources increased by $483,489 or 5% over the prior year. However,
this consisted of:
An increase in the Area-Wide Fiscal Disparities subsidy of $826,340. These taxes are
collected from properties in the greater metropolitan area, but outside of the City of
Columbia Heights, under a revenue-sharing agreement in state law.
An increase of $81,348 in excess tax increment refunded to the City from tax
increment financing districts.
A decrease in property taxes paid by local taxpayers of $424,199.
Program revenue for capital purposes of the governmental activities decreased by $1,275,454
as compared to the prior year. 2013 revenue included an $877,628 capital grant from Anoka
County to acquire redevelopment property, and $559,118 of special assessments primarily for
street reconstruction. These 2013 items were one-time revenues with no equivalent capital
program revenue in 2014.
22
Management’s Discussion and Analysis
Changes in net position - Business-type activities. In 2014, business-type activities increased the
City’s total net position by $844,338 or 1%. Total revenues and total expenses of the business-type
activities were substantially the same for 2014 as for 2013. The significant changes in the elements
that comprise the 2014 totals include:
2014 market changes in interest rates reversed a 2013 temporary decline in the fair value of
interest-bearing investments. This element of 2014 investment income was gain of $188,900;
whereas the prior year decline was $208,300. We note that under the City’s investment
policy, interest-bearing investments are held to maturity to address such temporary
fluctuations in fair value.
Revenue of the water utility decreased by $215,102 or 7% compared to the prior year,
primarily due to a reduction in the number of customer meters and curb shut-off valves
replaced, as compared to the prior year. A city-wide meter replacement program for
commercial and multi-family properties concluded in 2013. Apart from this change, total
revenues for water, sewer and storm sewer were relatively the same for 2014 and 2013. This
reflects utility rate increases of approximately 3%, offset by reduced billable volume due to
redevelopment, vacancy and conservation.
Refuse revenue increased by $67,031 or 4% over the prior year, which primarily reflects a
3% rate increase.
23
Management’s Discussion and Analysis
Liquor sales decreased by $331,713 or 4% from the prior year. This reflects reduced sales at
one of the City’s three municipal liquor stores, due to reduced traffic and increased
competition in that area. The offsetting reduction in cost of goods sold was $233,968.
Sewer expenses increased by $250,290 or 16% over the prior year. This primarily reflects
$221,000 to line various sections of sewer main in 2014. The City’s policy threshold for
capitalizing infrastructure improvements is $250,000. The 2014 lining activity was therefore
reported as current period expenses. There was no comparable lining of sewer mains
performed in 2013.
24
Management’s Discussion and Analysis
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unreserved fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At December 31, 2014, the City’s governmental funds reported combined fund balances of
$26,783,428. Committed, assigned and unassigned fund balance, which is available for spending at
the City’s discretion, has a combined balance of $20,797,148. 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 prepaid items ($97,753), land held for resale ($1,519,676), debt service
($1,134,227), tax increment purposes ($1,304,831), public housing ($918,360) and various other
restricted purposes detailed in the notes to the financial statements.
The general fund is the chief operating fund of the City. During the current year, fund balance in the
general fund increased by $976,543 or 15%. General fund expenditures increased by $244,406 or
2.5% over the prior year, which reflects the fund’s planned long-term rate of growth, which
approximates inflation. General fund revenues increased by $1,121,588 or 11% over the prior year.
25
Management’s Discussion and Analysis
Significant elements of this increase in revenues include:
2014 market changes in interest rates reversed a 2013 temporary decline in the fair value of
interest-bearing investments. Within the general fund, this element of 2014 investment
income was a gain of $238,924; whereas the prior year decline was $262,438. We note that
under the City’s investment policy, interest-bearing investments are generally held to
maturity to address such temporary fluctuations in fair value.
Property taxes received by the general fund from all sources increased by $408,662 or 5%
over the prior year. However, this consisted of:
An increase in the Area-Wide Fiscal Disparities subsidy of $762,652. These taxes are
collected from properties in the greater metropolitan area, but outside of the City of
Columbia Heights, under a revenue-sharing agreement in state law.
An increase of $81,348 in excess tax increment refunded to the City from tax
increment financing districts.
A decrease in property taxes paid by local taxpayers of $435,338.
Transfers from the general fund to other funds increased by $267,158 or 59% over the prior year.
This primarily reflects $300,000 transferred in 2014 to the nonmajor funds for 2015 capital
improvements. Other changes in general fund transfers between the current and prior year were
largely offsetting.
The changes in fund balance of the other major governmental funds in 2014, and significant elements
of those changes, were as follows:
2008A Taxable GO Housing Improvement Area Bonds Fund increased $5,225. This is the
net result of routine collection of special assessments pledged for debt service and payment
of related debt service.
The Municipal State Aid Street Fund increased by $154,190. This primarily reflects the
amount by which current year intergovernmental revenue for maintenance of state roads
within the City exceeded the related current year expenditures. The resulting fund balance
from this source is restricted for such street expenditures in future years.
The Capital Improvements General Government Buildings Fund increased by $78,500;
primarily from a $41,600 increase in the fair value of investments. Due to weather and
various planning matters, building improvement projects were deferred from 2014 to future
years, resulting in no expenditures from this fund in 2014.
The Capital Equipment Replacement General Government Fund increased by $82,281. This
reflects a $150,800 increase in the fair value of investments, offset by the net amount by
which 2014 equipment purchases exceeded interest income and transfers-in for equipment
purchases.
26
Management’s Discussion and Analysis
The Capital Improvements PIR Fund increased by $99,574. This reflects a $32,400 increase
in the fair value of investments, plus the amount by which special assessments collected in
the current year, from multiple years of improvement projects, exceeded current year project
expenditures and related transfers. PIR is the acronym for public improvement revolving
fund.
The Capital Improvements Development Fund decreased by $87,741. This primarily reflects
a $95,696 reduction in carrying value of real estate held for resale. All other changes within
this fund largely offset each other.
The combined total fund balances of the nonmajor governmental funds increased by $1,257,620 or
14% in 2014. The most significant elements of this change included:
Transfers of $600,000 from the General fund towards capital projects, including street
improvements, construction of a new library building, and construction of a splash pad (a
recreational water feature.)
A $216,200 increase in the fair value of investments.
Revenues (other than the above) committed by the City Council for certain purposes
exceeded the related current period expenditures by $261,998. These purposes included
cable television franchise management, library operations, a youth recreation program,
redevelopment, and senior housing, and other various purposes detailed in the notes to the
financial statements.
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, 2014, net position of the major proprietary funds included the following amounts
of unrestricted net position:
Water Fund $353,856
Sewer Fund $1,112,520
Refuse Fund $1,592,374
Storm Sewer Fund $476,749
Liquor Fund $2,661,131
The 2014 changes in net position of the major proprietary funds included the following:
Water Fund $431,397
Sewer Fund ($193,014)
Refuse Fund $267,146
Storm Sewer Fund $151,651
Liquor Fund $114,644
Other factors concerning the finances of the proprietary funds are addressed above in the analysis of
the City’s business-type activities.
27
Management’s Discussion and Analysis
Budgetary Highlights
General fund. The change between the original and final 2014 general fund budget consisted of
small budget amendments to increase intergovernmental revenue, charges for services, and
miscellaneous other revenues, by a total of $48,206. These changes were paired with related
increases to budgeted police and fire expenditures of $48,206. This reflects additional public safety
services and training funded by external entities after the adoption of the original budget.
Actual general fund revenues in 2014 were more than budgeted by $524,682 or 5%. This variance
was primarily the result of:
An increase in the fair value of investments of $238,924. The City does not budget for
changes in fair value, because under its investment policy, interest-bearing investments are
generally held to maturity to address temporary fluctuations in fair value.
$254,077 in excess tax increment was refunded to the City from tax increment financing
districts. The City’s practice is not to budget for such refunds. This item is reported within
the line item for tax revenues.
Actual general fund expenditures in 2014 were less than budgeted by $427,801 or 4%, as follows:
Approximately $230,000 of this variance was in personnel expenditures. Staff turnover
across multiple departments of the general fund resulted in several vacant positions and when
the positions were filled, they were paid at entry-level rates. Whereas, these positions were
budgeted at the incumbents’ rates. Additionally, some recreation staffing budgeted in the
general fund was later eligible for more restricted resources available in the nonmajor funds.
Approximately $60,000 of this variance reflects amounts budgeted for contingent matters
within various components of the general government function. These contingencies either
did not occur in 2014, or did not incur the budgeted level of costs in 2014.
Approximately $50,000 of this variance reflects amounts budgeted for 2014 facility
improvements which were deferred to subsequent years due to wet weather shortening the
2014 construction season and mid-year re-prioritization of projects.
Approximately $20,000 of this variance reflects amounts budgeted for 2014 senior recreation
trips which were subsequently replaced with lower cost trips or cancelled.
28
Management’s Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City’s capital assets for its governmental and business-type activities as of
December 31, 2014, amount to $54,529,264 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.
City of Columbia Heights’ Capital Assets
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,325,624$ - $ - $5,325,624
Construction in progress 890,391 272,932 (143,424) 1,019,899
Total capital assets not being depreciated 6,216,015 272,932 (143,424) 6,345,523
Capital assets - being depreciated:
Buildings 28,486,069 81,520 - 28,567,589
Equipment 8,322,753 225,604 (102,926) 8,445,431
Infrastructure 30,191,383 - (19,593) 30,171,790
Total capital assets being depreciated 67,000,205 307,124 (122,519) 67,184,810
Less accumulated depreciation for:
Buildings 12,092,985 698,643 - 12,791,628
Equipment 5,928,514 486,576 (101,057) 6,314,033
Infrastructure 14,208,210 1,029,384 - 15,237,594
Total accumulated depreciation 32,229,709 2,214,603 (101,057) 34,343,255
Capital assets being depreciated - net 34,770,496 (1,907,479) (21,462) 32,841,555
Governmental activities capital assets - net 40,986,511 (1,634,547) (164,886) 39,187,078
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 490,908 525,558 (424,903) 591,563
Total capital assets not being depreciated 2,840,121 525,558 (424,903) 2,940,776
Capital assets - being depreciated:
Buildings 4,934,546 190,447 - 5,124,993
Equipment 2,203,287 321,664 (15,011) 2,509,940
Infrastructure 16,019,696 234,457 - 16,254,153
Total capital assets being depreciated 23,157,529 746,568 (15,011) 23,889,086
Less accumulated depreciation for:
Buildings 1,371,021 145,758 - 1,516,779
Equipment 1,614,319 142,480 (15,011) 1,741,788
Infrastructure 7,864,178 364,931 - 8,229,109
Total accumulated depreciation 10,849,518 653,169 (15,011) 11,487,676
Capital assets being depreciated - net 12,308,011 93,399 - 12,401,410
Business-type activities capital assets - net 15,148,132 618,957 (424,903) 15,342,186
Total capital assets - net $56,134,643($1,015,590)($589,789)$54,529,264
29
Management’s Discussion and Analysis
Significant capital asset activity during 2014 included the following:
At December 31, 2014, the City had $278,800 of non-cancellable contractual commitments for
construction in 2015. Additional information on the City’s capital assets can be found in Note 5 to
the financial statements.
Long-term debt. During 2014, the City’s total bonded debt decreased by $867,000 to an end of year
total of $23,622,000, due to principal payments on existing bonded debt. No bonds were issued in
2014. Bonded debt outstanding at year end included general obligation bonds, 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 estimated market value of property within a city’s taxing jurisdiction. At December 31,
2014, the City’s debt limit under this statute was $28,634,250 and $12,260,000 of the City’s
outstanding debt was of the type to which this limit applies.
City of Columbia Heights’ Long-Term Debt
At December 31, 2014, 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, 2014, 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, 2014, are repaid only with
tax increment and are unrated.
2014 2013 2014 2013 2014 2013
General obligation bonds:
Repaid only with general taxes $12,260,000$12,685,000$ - $ - $12,260,000$12,685,000
With other pledged revenues 2,083,0212,258,0212,401,9792,436,979$4,485,000$4,695,000
Revenue bonds 2,617,0002,679,0004,260,0004,430,000$6,877,000$7,109,000
Compensated absences 1,007,424976,143156,637187,050$1,164,061$1,163,193
Postemployment benefits other
than pensions 191,151152,154 - - 191,151152,154
$18,158,596$18,750,318$6,818,616$7,054,029$24,977,212$25,804,347
Governmental Activities Business-Type Activities Totals
Year
Project StartedCost to DateStatus
Watermain Lining2012234,457 in-service
Watermain Lining2013392,430 in-progres s
Pump Station 2 - Valves 2013190,446 in-service
Pump Station 2 - Motors 2014115,846 in-progres s
Street Reconstruction - Zone 3 2013882,821 in-progres s
Jackson Pond Reconstruction 201364,456 in-progres s
Library Building Replacement 201472,138 in-progres s
As of December 31, 2014
30
Management’s Discussion and Analysis
In addition to bonded debt, at year end there was long-term debt in the amount of $1,164,061 and
$191,151 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 2014, the average annual unemployment rate for Anoka County, which includes the City, was
4.1%. This is a decrease from a rate of 4.8% from the prior year. This compares to the average
annual 2014 state and national rates of 4.1% and 6.2% respectively. The Consumer Price Index in
the region compares favorably to national trends.
In 2014, a significant majority of the City’s voters approved by referendum the issuance of up to
$7 million in general obligation bonds for the construction of a new municipal library building
on a redevelopment site previously purchased by the Economic Development Authority. In
February 2015, these bonds were issued in the amount of $6,875,000. They will be repaid with
general property taxes over the next twenty years.
These factors were considered when preparing the City of Columbia Heights’ 2015 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.
31
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32
BASIC FINANCIAL STATEMENTS
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2014 Page 1 of 2
With Comparative Totals For December 31, 2013
GovernmentalBusiness-Type
ActivitiesActivities20142013
Current assets:
Cash and investments$27,499,587$5,857,161$33,356,748$30,389,298
Cash and investments with fiscal agent - 399,250399,250399,254
Receivables:
Accounts (net of allowance for uncollectibles)87,1671,613,5781,700,7451,952,441
Special assessments - current479,884 - 479,884458,884
Taxes 497,701 - 497,701377,839
Interest38,9307,20046,13061,925
Due from other governmental units - current672,059116,145788,204893,409
Internal balances(166,673)166,673 - -
Prepayments159,53081,233240,763230,989
Inventory - at cost68,5622,884,1972,952,7592,856,999
Real estate held for resale1,914,474 - 1,914,4741,919,419
Total current assets31,251,22111,125,43742,376,65839,540,457
Noncurrent assets:
Special assessments receivable - noncurrent2,022,788 - 2,022,7882,230,222
Capital assets (net of accumulated depreciation):
Land5,325,6242,349,2137,674,8377,674,837
Buildings15,775,9613,608,21419,384,17519,956,609
Equipment2,131,398768,1522,899,5502,983,207
Infrastructure14,934,1968,025,04422,959,24024,138,690
Construction in process1,019,899591,5631,611,4621,381,300
Total noncurrent assets41,209,86615,342,18656,552,05258,364,865
Total assets72,461,08726,467,62398,928,71097,905,322
Totals
Primary Government
Assets
The accompanying notes are an integral part of these financial statements.
34
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2014 Page 2 of 2
With Comparative Totals For December 31, 2013
GovernmentalBusiness-Type
ActivitiesActivities20142013
Current liabilities:
Accounts payable$283,780$457,227$741,007$1,102,669
Accrued salaries and withholdings payable259,79571,417331,212287,908
Contracts payable - retained percentage67,00441,854108,858151,844
Due to other governmental units165,067427,770592,837599,784
Unearned revenue228,078 - 228,078206,518
Accrued interest payable299,885107,564407,449408,416
Deposits39,777 - 39,77738,278
Compensated absences payable - current50,3717,83158,20269,791
Bonds payable - current791,716496,2841,288,000867,000
Total current liabilities2,185,4731,609,9473,795,4203,732,208
Noncurrent liabilities:
Compensated absences payable - noncurrent957,054148,8051,105,8591,093,402
Other postemployment benefits payable - noncurrent191,151 - 191,151152,154
Bonds payable - noncurrent16,168,3056,165,69522,334,00023,622,000
Total noncurrent liabilities17,316,5106,314,50023,631,01024,867,556
Total liabilities19,501,9837,924,44727,426,43028,599,764
Net investments in capital assets26,049,05710,729,45736,778,51437,723,897
Restricted for:
Debt service872,839543,8221,416,6611,227,898
Tax increment purposes950,206 - 950,2061,069,796
Public housing918,360 - 918,360862,433
Other purposes1,011,432 - 1,011,432830,562
Unrestricted23,157,2107,269,89730,427,10727,590,972
Total net position$52,959,104$18,543,176$71,502,280$69,305,558
Liabilities
Net position
Primary Government
Totals
The accompanying notes are an integral part of these financial statements.
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Program Revenues
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$2,104,025$194,201
Public safety5,801,747752,694
Public works3,052,84489,392
Culture and recreation2,565,755234,494
Community development1,943,576987,722
Interest on long-term debt761,967 -
Total governmental activities16,229,9142,258,503
Business-type activities:
Water 2,336,4752,805,072
Sewer 1,789,2601,627,078
Refuse 1,695,9971,887,038
Storm sewer 315,809366,384
Liquor 8,148,7888,415,371
14,286,32915,100,943
Total primary government$30,516,243$17,359,446
The accompanying notes are an integral part of these financial statements.
36
Statement 2
OperatingCapital
Grants andGrants andBusiness-Type
ContributionsContributionsGovernmentalActivities20142013
$ - $ - ($1,909,824)$ - ($1,909,824)($1,590,479)
404,486 - (4,644,567) - (4,644,567)(4,466,074)
557,112183,706(2,222,634) - (2,222,634)(1,714,986)
31,521 - (2,299,740) - (2,299,740)(2,333,760)
- 422,773(533,081) - (533,081)(7,304)
- - (761,967) - (761,967)(808,933)
993,119606,479(12,371,813)0(12,371,813)(10,921,536)
- - - 468,597468,597650,731
- - - (162,182)(162,182)79,816
91,421 - - 282,462282,462265,825
- 47,369 - 97,94497,94475,384
- - - 266,583266,583405,775
91,42147,3690953,404953,4041,477,531
$1,084,540$653,848(12,371,813)953,404(11,418,409)(9,444,005)
General revenues:
Property taxes10,310,867 - 10,310,8679,827,378
Tax increment collections463,837 - 463,837532,524
Grants and contributions not
restricted to specific programs1,496,804 - 1,496,8041,000,513
Unrestricted investment earnings:1,091,263252,3601,343,623(816,994)
Gain on sale of capital assets used
in governmental activities - - - 11,842
Transfers361,426(361,426) - -
Total general revenues and transfers13,724,197(109,066)13,615,13110,555,263
Change in net position1,352,384844,3382,196,7221,111,258
Net position - January 151,606,72017,698,83869,305,55868,194,300
Net position - December 31$52,959,104$18,543,176$71,502,280$69,305,558
Totals
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
Primary Government
The accompanying notes are an integral part of these financial statements.
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2014
General Fund
2008A Taxable GO
Housing
Improvement Area
Bonds Fund
Municipal State Aid
Street Fund
Assets
Cash and investments$7,511,878$193,888$415,313
Receivables:
Accounts29,221 - -
Special assessments - 711,509 -
Taxes458,984 - -
Interest12,630 - -
Due from other governmental units114,371 - 39,581
Interfund receivable33,655 - -
Prepayments94,893 - -
Real estate held for resale - - -
Total assets$8,255,632$905,397$454,894
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$103,354$ - $16,899
Accrued salaries and withholdings payable224,078 - 1,496
Contracts payable - retained percentage15,494 - -
Due to other governmental units129,838 - -
Interfund payable - - -
Unearned revenue149,302 - -
Deposits - - -
Total liabilities622,066018,395
Deferred inflows of resources:
Unavailable revenue259,746711,50815,000
Total deferred inflows of resources259,746711,50815,000
Fund balance:
Nonspendable94,892 - -
Restricted - 193,889421,499
Committed30,548 - -
Unassigned7,248,380 - -
Total fund balances7,373,820193,889421,499
Total liabilities, deferred inflows
of resources, and fund balances$8,255,632$905,397$454,894
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.
38
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
2014
$1,150,593$4,130,328$892,551$1,447,272$9,113,156$ - $24,854,979
- - 2,856 - 55,090 - 87,167
- - 1,634,247 - 156,916 - 2,502,672
- - - - 38,717 - 497,701
2,0007,2001,5002,60010,100 - 36,030
- - 85,000 - 433,107 - 672,059
- 245,000156,916340,840173,406(704,817)245,000
- - - - 2,861 - 97,754
- - 45,600167,7611,701,113 - 1,914,474
$1,152,593$4,382,528$2,818,670$1,958,473$11,684,466($704,817)$30,907,836
$ - $28,110$497$38,357$89,114$ - $276,331
- - 570 - 27,578 - 253,722
- - 51,510 - - - 67,004
- - - - 35,229 - 165,067
- - - - 714,446(704,817)9,629
- - - - 70,872 - 220,174
- - 11,945 - 27,832 - 39,777
028,11064,52238,357965,071(704,817)1,031,704
- - 1,620,066 - 486,384 - 3,092,704
001,620,0660486,38403,092,704
- - 45,600167,7611,309,176 - 1,617,429
- - - - 3,753,463 - 4,368,851
1,152,5934,354,4181,088,4821,752,3555,245,761 - 13,624,157
- - - - (75,389) - 7,172,991
1,152,5934,354,4181,134,0821,920,11610,233,011026,783,428
$1,152,593$4,382,528$2,818,670$1,958,473$11,684,466($704,817)$30,907,836
$26,783,428
37,893,422
3,092,706
2,640,605
(17,451,057)
$52,959,104
The accompanying notes are an integral part of these financial statements.
39
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
General Fund
2008A Taxable
GO Housing
Improvement
Area Bonds Fund
Municipal State
Aid Street Fund
Revenues:
Taxes$8,551,642$ - $ -
Tax increment collections - - -
Special assessments - 100,815 -
Licenses and permits199,108 - -
Intergovernmental1,558,816 - 453,213
Charges for services629,632 - -
Fines and forfeitures123,633 - -
Investment income:
Interest and dividends84,643960 -
Change in fair value238,9243,200 -
Other revenues13,617 - -
Total revenues11,400,015 104,975 453,213
Expenditures:
Current:
General government1,881,552 - -
Public safety5,243,299 - -
Public works1,474,710 - 282,694
Culture and recreation1,463,093 - -
Community development - - -
Capital outlay:
General government - - -
Public safety4,073 - -
Public works62,896 - 16,329
Culture and recreation - - -
Community development - - -
Debt service:
Principal retirement - 55,000 -
Interest and fiscal charges - 44,750 -
Developer incentives - - -
Total expenditures10,129,623 99,750 299,023
Revenues over (under) expenditures1,270,392 5,225 154,190
Other financing sources (uses):
Transfers in428,651 - 9,302
Transfers out(722,500) - (9,302)
Sale of capital assets - - -
Total other financing sources (uses)(293,849)0 0
Net change in fund balance976,543 5,225 154,190
Fund balance - January 16,397,277188,664267,309
Fund balance - December 31$7,373,820$193,889$421,499
The accompanying notes are an integral part of these financial statements.
40
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
2014
$ - $ - $ - $ - $1,761,166$ - $10,312,808
- - - - 462,179 - 462,179
- - 357,855 - - - 458,670
- - - - 215,924 - 415,032
- - - - 754,354 - 2,766,383
- - 82,33516,676974,257 - 1,702,900
- - - - 16,938 - 140,571
14,40063,08011,10019,00078,856 - 272,039
41,600150,80032,40055,900216,200 - 739,024
- - - 4,88955,309 - 73,815
56,000 213,880 483,690 96,465 4,535,183 0 17,343,421
- 30,376 - - 27,761 - 1,939,689
- 9,169 - - 18,330 - 5,270,798
- - 158,957 - 513 - 1,916,874
- - - - 784,359 - 2,247,452
- - - 95,9261,448,493 - 1,544,419
- 21,642 - - - - 21,642
- 99,634 - - - - 103,707
- - - - - - 79,225
- 28,110 - - 72,138 - 100,248
- - - 95,696317,483 - 413,179
- - - - 607,000 - 662,000
- - - - 725,785 - 770,535
- - - - 55,123 - 55,123
0 188,931 158,957 191,622 4,056,985 0 15,124,891
56,000 24,949 324,733 (95,157)478,198 0 2,218,530
22,50050,000 - - 1,056,566(1,161,291)405,728
- - (225,159) - (328,632)1,161,291(124,302)
- 7,332 - 7,41651,488 - 66,236
22,500 57,332 (225,159)7,416 779,422 0 347,662
78,500 82,281 99,574 (87,741)1,257,620 0 2,566,192
1,074,0934,272,1371,034,5082,007,8578,975,391 - 24,217,236
$1,152,593$4,354,418$1,134,082$1,920,116$10,233,011$0$26,783,428
The accompanying notes are an integral part of these financial statements.
41
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42
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, 2014
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)$2,566,192
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.(1,712,536)
The net effect of various miscellaneous transactions involving capital assets, such as
sales, trade-ins and abandonments was a decrease in net position.(7,476)
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.662,000
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.8,569
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.(38,997)
Revenue earned in prior years, that first becomes available in the current year, is reported in the
governmental funds. Whereas, this amount was reported in the statement of activities
in the prior year(s) in which it was earned.(191,828)
The net revenues (expenses) of certain activities of internal service funds are reported within the
governmental activities in the statement of activities.66,460
Change in net position of governmental activities (Statement 2)$1,352,384
The accompanying notes are an integral part of these financial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2014
Assets:Water Utility FundSewer Utility Fund
Current assets:
Cash and cash equivalents$1,090,651$1,108,445
Cash and cash equivalents with fiscal agent - -
Receivables:
Accounts (net of allowance for uncollectibles)603,150418,066
Interest 1,6001,400
Due from other governmental units - current - -
Interfund receivable 9,629 -
Prepayments - 81,233
Inventory - at cost 7,392 -
Total current assets1,712,422 1,609,144
Noncurrent assets:
Capital assets:
Land 45,22336,586
Construction in progress516,52410,583
Buildings 750,272403,659
Equipment 515,901932,135
Infrastructure 8,581,4226,154,219
Total capital assets10,409,342 7,537,182
Less: accumulated depreciation(4,717,796)(4,440,318)
Net capital assets5,691,5463,096,864
Total noncurrent assets5,691,5463,096,864
Total assets7,403,9684,706,008
Liabilities:
Current liabilities:
Accounts payable 38,31816,290
Accrued salaries and withholdings payable9,1265,898
Due to other governmental units335,576 -
Interfund payable 195,000 -
Contracts payable 5,68336,171
Accrued interest payable7,2072,329
Unearned revenue - -
Compensated absences payable - current9241,785
Bonds payable - current177,02835,000
Total current liabilities768,862 97,473
Noncurrent liabilities:
Compensated absences payable - noncurrent17,56633,921
Bonds payable - noncurrent1,000,796330,000
Total noncurrent liabilities1,018,362 363,921
Total liabilities1,787,224461,394
Net position:
Net investments in capital assets5,063,7223,091,864
Restricted 199,16640,230
Unrestricted 353,8561,112,520
Total net position$5,616,744$4,244,614
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.
44
Statement 6
Business-Type Activities - Enterprise Funds
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundTotal Enterprise FundsInternal Service Funds
20142014
$1,163,446$1,254,519$537,566$5,154,627$3,347,145
- - 399,250399,250 -
498,04294,299211,613,578 -
2,100900 - 6,0004,100
64,33448,1043,707116,145 -
- - - 9,629 -
- - - 81,23361,776
- - 2,876,8052,884,19768,562
1,727,922 1,397,822 3,817,349 10,264,659 3,481,583
- 260,6902,006,7142,349,21315,779
- 64,456 - 591,563 -
56,000 - 3,915,0625,124,9931,978,957
112,893298,614413,2022,272,745471,457
- 1,518,512 - 16,254,153 -
168,893 2,142,272 6,334,978 26,592,667 2,466,193
(122,257)(888,980)(1,127,402)(11,296,753)(1,126,268)
46,6361,253,2925,207,57615,295,9141,339,925
46,6361,253,2925,207,57615,295,9141,339,925
1,774,5582,651,1149,024,92525,560,5734,821,508
128,8773,788268,668455,9418,735
2,2653,24042,92263,45114,039
- - 92,194427,770 -
- 50,000 - 245,000 -
- - - 41,854 -
- 4,34793,681107,564 -
- - - - 7,904
220973,6426,66851,534
- 104,256180,000496,284 -
131,362 165,728 681,107 1,844,532 82,212
4,1861,84669,190126,709979,150
- 754,8994,080,0006,165,695 -
4,186 756,745 4,149,190 6,292,404 979,150
135,548922,4734,830,2978,136,9361,061,362
46,6361,134,1371,346,83010,683,1891,339,925
- 117,755186,667543,818 -
1,592,374476,7492,661,1316,196,6302,420,221
$1,639,010$1,728,641$4,194,62817,423,637$3,760,146
1,119,539
$18,543,176
The accompanying notes are an integral part of these financial statements.
45
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
Water Utility FundSewer Utility FundRefuse Utility Fund
Operating revenues:
Charges for services$161,482$1,626,678$1,887,038
Charges for sales, net of discounts (Note 1C)2,634,798 - -
Total operating revenues2,796,280 1,626,678 1,887,038
Operating expenses:
Cost of sales, services and goods sold1,200,008975,0681,493,372
Operating expense830,486606,438153,019
Depreciation232,807157,5173,641
Total operating expenses2,263,301 1,739,023 1,650,032
Net income (loss) from operations532,979 (112,345)237,006
Nonoperating revenues (expenses):
Investment income:
Interest and dividends13,10013,53014,500
Change in fair value37,00041,70041,300
Intergovernmental - - 91,421
Miscellaneous revenues8,792400 -
Miscellaneous expense - - -
Interest and fiscal charges(30,494)(6,320) -
Total nonoperating revenues (expenses)28,398 49,310 147,221
Net income (loss) before transfers and capital contributions561,377 (63,035)384,227
Transfers in714,857189,087 -
Transfers out(844,837)(319,066)(117,081)
Capital contributions - intergovernmental - - -
Total transfers and capital contributions(129,980)(129,979)(117,081)
Change in net position431,397 (193,014)267,146
Total net position - January 15,185,3474,437,6281,371,864
Total net position - December 31$5,616,744 $4,244,614 $1,639,010
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:
Capital contributions - intergovernmental reported as capital grants and contributions on the statement of activities
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.
46
Statement 7
Storm Sewer Utility
FundLiquor FundInterfund EliminationsTotal Enterprise FundsInternal Service Funds
20142014
$365,485$ - $ - $4,040,683$1,050,217
- 8,415,371 - 11,050,169165,468
365,485 8,415,371 0 15,090,852 1,215,685
- 6,343,663 - 10,012,1111,397,506
212,5141,385,082 - 3,187,539 -
88,646151,900 - 634,51188,202
301,160 7,880,645 0 13,834,161 1,485,708
64,325 534,726 0 1,256,691 (270,023)
12,900730 - 54,76029,200
41,3002,500 - 163,80084,800
- - - 91,421 -
899 - - 10,091 -
- (16,188) - (16,188) -
(15,142)(207,738) - (259,694) -
39,957 (220,696)0 44,190 114,000
104,282 314,030 0 1,300,881 (156,023)
146,000384,000(1,433,944) - 330,000
(146,000)(583,386)1,433,944(576,426)(35,000)
47,369 - - 47,369 -
47,369 (199,386)0 (529,057)295,000
151,651 114,644 0 771,824 138,977
1,576,9904,079,984 - 16,651,8133,621,169
$1,728,641 $4,194,628 $0 $17,423,637 $3,760,146
$771,824
72,514
$844,338
Transfers -
Net
($529,057)
(47,369)
215,000
($361,426)
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, 2014
Water Utility FundSewer Utility Fund
Cash flows from operating activities:
Cash received from customers$2,988,471$1,628,060
Cash received from interfund goods and services provided - -
Cash paid to suppliers for goods and services(1,681,703)(1,487,127)
Cash payments to employees for services(490,906)(193,917)
Net cash flows provided by (used in) operating activities815,862 (52,984)
Cash flows from noncapital financing activities:
Cash received from other funds - -
Transfers in - -
Transfers out (129,980)(129,979)
Intergovernmental - -
Interfund receivable repaid by (advanced to) other funds(6,865) -
Interfund payable (repaid to) advanced by other funds(64,000) -
Net cash flows provided by (used in) noncapital financing activities(200,845)(129,979)
Cash flows from capital and related financing activities:
Acquisition of capital assets(513,106)(136,883)
Principal payments - bonds(35,000) -
Interest and fiscal charges (26,076)(3,991)
Net cash flows provided by (used in) capital and related financing activities(574,182)(140,874)
Cash flows from investing activities:
Investment income
Interest and dividends14,20015,130
Change in fair value37,00041,700
Net cash flows provided by (used in) investing activities51,200 56,830
Net increase (decrease) in cash and cash equivalents92,035 (267,007)
Total cash and cash equivalents - January 1998,6161,375,452
Total cash and cash equivalents - December 311,090,651 1,108,445
(Less) cash and cash equivalents with fiscal agent - December 31 - -
Cash and cash equivalents - December 31$1,090,651$1,108,445
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
48
Statement 8
Page 1 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
20142014
$1,847,957$373,602$8,413,412$15,251,502$ -
- - - - 1,215,686
(1,668,933)(116,356)(6,895,305)(11,849,424)(956,816)
(84,915)(109,825)(996,188)(1,875,751)(468,084)
94,109 147,421 521,919 1,526,327 (209,214)
- - - - 29,612
- - - - 330,000
(117,081) - (199,386)(576,426)(35,000)
91,421 - - 91,421 -
- - - (6,865) -
- (16,000) - (80,000) -
(25,660)(16,000)(199,386)(571,870)324,612
- (155,330) - (805,319)(32,018)
- - (170,000)(205,000) -
- (10,795)(211,235)(252,097) -
0 (166,125)(381,235)(1,262,416)(32,018)
14,80013,20093058,26030,700
41,30041,3002,500163,80084,800
56,100 54,500 3,430 222,060 115,500
124,549 19,796 (55,272)(85,899)198,880
1,038,8971,234,723992,0845,639,7723,148,265
1,163,446 1,254,519 936,812 5,553,873 3,347,145
- - (399,250)(399,250) -
$1,163,446$1,254,519$537,562$5,154,623$3,347,145
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2014
Water Utility FundSewer Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$532,979($112,345)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense232,807157,517
Miscellaneous revenues13,349 -
Miscellaneous expense(4,557)400
Changes in assets and liabilities:
(Increase) decrease in accounts receivable196,748982
(Increase) decrease in due from other governmental units - -
(Increase) decrease in prepayments - 21
(Increase) decrease in inventory, at cost(75) -
Increase (decrease) in accounts payable(154,532)(101,548)
Increase (decrease) in accrued
salaries and withholdings payable555(239)
Increase (decrease) in contracts payable - retained percentage(11,147)5,071
Increase (decrease) in due to other governmental units18,509 -
Increase (decrease) in compensated absences payable(8,774)(2,843)
Increase (decrease) in deferred revenue - -
Total adjustments282,88359,361
Net cash flows from operating activities$815,862($52,984)
Noncash capital and related financing activities:
Contributions - intergovernmental revenue $ - $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
50
Statement 8
Page 2 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundEnterprise Funds
Internal Service
Funds
20142014
$237,006$64,325$534,726$1,256,691($270,023)
3,64188,646151,900634,51188,202
- - - 13,349 -
- 899(16,188)(19,446) -
(8,288)7,21867196,727 -
(30,793) - (2,026) - -
- - - 21(7,725)
- - (90,214)(90,289)(5,471)
(106,159)(13,062)(44,462)(419,763)(18,943)
44361711,28812,6642,535
- (1,799) - (7,875) -
- - (5,219)13,290 -
(1,741)577(17,953)(30,734)1,980
- - - - 231
(142,897)83,096(12,807)302,45560,809
$94,109$147,421$521,919$1,559,146($209,214)
$ - $47,369$ - $47,369$ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION Statement 9
FIDUCIARY FUNDS
December 31, 2014
Assets:
Cash and investments $11,218
Due from other governmental units 1,734
Total assets $12,952
Liabilities:
Accounts payable $9,611
Due to other governmental units 3,341
Total liabilities $12,952
The accompanying notes are an integral part of these financial statements.
52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
The municipal state aid street fund is maintained according to state statute to account for maintenance
and construction of municipal state aid street systems.
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
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
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 2014, liquor sales discounts were $224,829. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
D. BUDGETARY DATA
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
on January 1 of the following year. At least one special Council meeting is conducted to obtain public
comments as required by the State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 for the General Fund and the following special
revenue funds:
Nonmajor special revenue funds:
Cable television fund
Library fund
Community development fund
Economic Development Authority (component unit):
Economic Development Authority administration fund
Housing and Redevelopment Authority (component unit):
Parkview villa north fund
Parkview villa south fund
The budgets are prepared by fund, function and activity. The budgets are adopted on a basis consistent
with generally accepted accounting principles and all appropriations lapse at the end of the budget year to
the extent that they have not been expended. Total expenditures appropriated in the budget resolution may
not legally exceed the estimated revenues available from various sources.
Formal budgetary integration is employed as a management control device during the year. Budget
revisions between functions or activities may be made by the City Manager. Budget revisions at the fund
level are authorized by the City Council in accordance with the City Charter at the request of the City
Manager. The legal level of budgetary control is therefore at the fund level.
The City does not use encumbrance accounting.
E. CASH AND INVESTMENTS
Cash balances from all funds of the City are pooled and invested to the extent available in authorized
investments. Investments are stated at fair value, based upon quoted market prices. Investment income is
allocated to the individual funds on the basis of applicable cash balance participation by each fund using an
average of monthly beginning cash and investment balances.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, 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.
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 inflow of resources.
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 inflow 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.
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.
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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:
Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.
Infrastructure assets acquired prior to June 30, 1980 are not recorded. Donated capital assets are recorded
at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do
not add to the value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
Property, plant and equipment of the primary government, as well as the component units, is depreciated
using the straight line method over the following estimated useful lives:
L. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation pay and the vested portion of sick pay is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental funds only
if they have matured, for example, as a result of employee resignations and retirements. In accordance with
the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated
Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
Typically, resources from the compensated absences fund are used to liquidate the liability for compensated
absences.
Buildings (and building components)10 - 50 years
Equipment3 - 15 years
Infrastructure20 - 60 years
Capital Assets
Land $1
Buildings 25,000
Equipment 5,000
Infrastructure 250,000
Capitalization Threshold
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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. Once adopted, the limitation imposed requires a similar action be
taken to remove or revise the limitation.
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 2010-138, the City Manager 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.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
O. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an
interfund loan receivable or payable which offsets the movement of cash between funds. All other
interfund transactions are reported as transfers.
P. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial statements
during the reporting period. Actual results could differ from such estimates.
Q. COMPARATIVE DATA/RECLASSIFICATIONS
Certain comparative total data for the prior year has been presented in the government-wide financial
statements in order to provide an understanding of the changes in the City’s financial position and
operations. Certain amounts presented in the prior year data have been reclassified in order to be consistent
with the current year’s presentation.
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.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 ($17,451,057) difference are as follows:
Accrued interest payable ($299,885)
Other postemployment benefits payable (191,151)
Bonds payable (16,960,021)
Adjustment to fund balance - total governmental
funds - to arrive at net position of governmental activities ($17,451,057)
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 depreciation
exceeded capital outlay in the current year.” The details of this ($1,712,540) difference are as follows:
Total capital outlay in government fund financial statements $718,001
Adjustments for items not capitalized (8,903)
Adjustments to the carrying value of real estate held for
resale (291,595)
Depreciation expense (2,130,043)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. ($1,712,540)
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Another element of that reconciliation states, “The issuance of long-term debt provides current
financial resources to the governmental funds, while repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither transaction has any effect on
net position however. This amount is the net effect of these differences in the treatment of long-term
debt.” The details of this $662,000 difference are as follows:
Debt issued:
None $0
Principal repayments:
General obligation bonds 600,000
Revenue bonds 62,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. $662,000
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 ($191,828) difference are
as follows:
Unavailable revenue - General property taxes:
At December 31, 2013 ($269,628)
At December 31, 2014 267,687
Unavailable revenue - Tax increment taxes:
At December 31, 2013 (15,625)
At December 31, 2014 17,283
Unavailable revenue - Special assessments:
At December 31, 2013 (2,680,036)
At December 31, 2014 2,488,491
Unavailable revenue - Due from other government:
At December 31, 2013 (319,244)
At December 31, 2014 319,244
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities. ($191,828)
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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.
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, 2014, 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, 2014 are
as follows:
Carrying
Amount At
Fair Value
Investments $16,326,350
Deposits 17,432,294
Cash on hand 8,572
(Less) fiduciary fund cash (11,218)
$33,755,998
Cash and investments $33,356,748
Cash and investments with fiscal agent 399,250
$33,755,998
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;
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
(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.
Deposits as of December 31, 2014 are as follows:
Carrying
Bank Amount At
Balances Fair Value
Demand
deposits $1,217,786 $856,675
Time deposits 16,569,916 16,575,619
Total $17,787,702 $17,432,294
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.
(4) any security which is an obligation of a school district with an original maturity not exceeding 13
months and rated in the highest category by a national bond rating service, or enrolled in the credit
enhancement program pursuant to Section 126C.55.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
f) 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.
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
g) Funds held in a debt service fund may be used to purchase any obligation, whether general or special,
of an issue which is payable from the fund, at such price, which may include a premium, as shall be
agreed to by the holder, or may be used to redeem any obligation of such an issue prior to maturity in
accordance with its terms.
Investments as of December 31, 2014 are as follows:
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. To address this risk, the City’s policy is to generally
hold investments to maturity.
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, 2014, 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, 2014, 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, 2014.
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, 2014, investments in securities are held by the City’s three broker-
Weighted
Average CarryingPercentage
MaturitiesAmount Atof Fair Value
In YearsFair ValuePer Issuer
Notes issued by U.S. government agencies:
Federal Home Loan Bank4.6$5,871,20836.0%
Federal National Mortgage Association12.63,722,68422.8%
Federal Home Loan Mortgage Corporation10.4138,8960.9%
Federal Farm Credit Bank10.6314,6721.9%
Money market mutual funds:
Evergreen U.S. Government FundLess than 1yr3,974,33624.2%
Western Asset Government FundLess than 1yr1,363,8548.4%
Other issuersLess than 1yr940,7005.8%
Total investments16,326,350$ 100.0%
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
dealers in the City’s name, with $500,000 of those securities at each broker-dealer insured by SIPC.
Each broker-dealer has provided additional protection by providing additional insurance. This
additional insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts.
Investments in money markets are not evidenced by securities that exist in physical or book entry
form, and therefore are not subject to custodial credit risk disclosures.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2014 are as follows:
Nonmajor
Major Funds Funds
2008A Taxable Capital G.O. Imp
GO Housing Imp Improvement Rev Bonds
Area Bonds Fund PIR Fund 2013A Total
Special assessments receivable $650,749 $1,215,122 $156,916 $2,022,787
Total $650,749 $1,215,122 $156,916 $2,022,787
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$259,746$ - $ - $ - $259,746
2008A Taxable GO Housing Imp Area Bonds Fund - - 711,508 - 711,508
Municipal State Aid Street Fund - - - 15,00015,000
Capital Improvements - PIR Funds - - 1,620,066 - 1,620,066
Nonmajor Governmental Funds:7,94117,283156,916304,244486,384
Total unavailable revenue267,687 17,2832,488,490319,2443,092,704
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 is as follows:
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,325,624$ - $ - $5,325,624
Construction in progress 890,391 272,932 (143,424) 1,019,899
Total capital assets not being depreciated6,216,015 272,932 (143,424) 6,345,523
Capital assets - being depreciated:
Buildings 28,486,069 81,520 - 28,567,589
Equipment 8,322,753 225,604 (102,926) 8,445,431
Infrastructure 30,191,383 - (19,593) 30,171,790
Total capital assets being depreciated 67,000,205 307,124 (122,519) 67,184,810
Less accumulated depreciation for:
Buildings 12,092,985 698,643 - 12,791,628
Equipment 5,928,514 486,576 (101,057) 6,314,033
Infrastructure 14,208,210 1,029,384 - 15,237,594
Total accumulated depreciation 32,229,709 2,214,603 (101,057) 34,343,255
Capital assets being depreciated - net 34,770,496 (1,907,479) (21,462) 32,841,555
Governmental activities capital assets - net40,986,511 (1,634,547) (164,886) 39,187,078
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 490,908 525,558 (424,903) 591,563
Total capital assets not being depreciated2,840,121 525,558 (424,903) 2,940,776
Capital assets - being depreciated:
Buildings 4,934,546 190,447 - 5,124,993
Equipment 2,203,287 321,664 (15,011) 2,509,940
Infrastructure 16,019,696 234,457 - 16,254,153
Total capital assets being depreciated 23,157,529 746,568 (15,011) 23,889,086
Less accumulated depreciation for:
Buildings 1,371,021 145,758 - 1,516,779
Equipment 1,614,319 142,480 (15,011) 1,741,788
Infrastructure 7,864,178 364,931 - 8,229,109
Total accumulated depreciation 10,849,518 653,169 (15,011) 11,487,676
Capital assets being depreciated - net 12,308,011 93,399 - 12,401,410
Business-type activities capital assets - net15,148,132 618,957 (424,903) 15,342,186
Total capital assets - net $56,134,643($1,015,590)($589,789)$54,529,264
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Depreciation expense was charged to functions/programs of the primary government – governmental activities as
follows:
Governmental activities:
General government $85,444
Public safety 514,784
Public works 1,127,070
Culture and recreation 292,226
Community development 110,519
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Central garage 69,547
Total depreciation expense - capital assets held by governmental activities $2,199,590
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water $232,678
Sewer 157,516
Refuse 3,641
Storm sewer 88,196
Liquor 151,900
Depreciation on capital assets held by business-type internal service activities
is charged to each function based on use:
Information systems 18,655
Total depreciation expense - capital assets held by business-type activities $652,586
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2014 are as follows:
Fund Receivable Payable
Major Funds:
General Fund $33,655 $ -
Capital Equipment Replacement General
Gov't 245,000 -
Capital Improvement PIR Fund 156,916 -
Capital Improvement Development 340,840 -
Water 9,629 195,000
Storm Sewer - 50,000
Nonmajor funds 119,406 660,446
Total $905,446 $905,446
$80,283 of these interfund balances are for services provided in 2014 and reimbursed in 2015. Also included in
these balances is an interfund loan from the Capital Equipment Replacement – General Government Fund to the
Water Fund for $195,000, and to the Storm Sewer Fund for $50,000; to finance utility infrastructure improvements.
All other interfund balances at December 31, 2014, reflect lending arrangements to cover deficit cash balances at
yearend. Substantially all such other amounts are expected to be repaid within one year.
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
INTERFUND TRANSFERS
Interfund transfers during the year ended December 31, 2014 are as follows:
GeneralCapitalCapital EqpOther
FundImprvmts GenReplacementGovtlInternal
Govt BldgGen GovtFundsServiceTotal
Transfers out:
Major funds:
Governmental:
General$ - $22,500$50,000$600,000$50,000$722,500
Capital Imprvmts PIR19,593 - - 205,566 - 225,159
Enterprise:
Water84,980 - - - 45,000129,980
Sewer84,979 - - - 45,000129,979
Refuse72,081 - - - 45,000117,081
Liquor104,386 - - 50,00045,000199,386
Nonmajor funds:
Other governmental funds62,632 - - 201,00065,000328,632
Internal service funds - - - - 35,00035,000
Total$428,651$22,500$50,000$1,056,566$330,000$1,887,717
Transfers In
Nonmajor Funds
Governmental
Major Funds
Governmental
2014 interfund transfers were primarily for the following purposes:
a) To fund debt service funds with pledged resources from the funds authorized to collect those resources.
b) To fund capital projects, equipment replacement, and information systems with certain resources from
operating budgets.
c) To fund general government functions of the General Fund which are broadly applicable to all activities of
the primary government.
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, 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$460,000
GO Public safety center series 2008BNone10,000,0004.30-4.55%8/6/20082/1/20389,190,000
GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/20382,610,000
Taxable GO tax increment bonds series 2009BTax increment580,0003.40-5.10%7/1/20092/1/2021470,000
Taxable GO housing imprvmt area series 2008ASpecial assessments975,0005.00-6.05%7/16/20082/1/2024735,000
GO Public Facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019315,000
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 Public Facilities series 2009AUtility revenues325,0002.00-4.75%7/1/20092/1/2019190,000
GO Utility revenue series 2013AUtility revenues1,685,0000.40-2.50%11/21/20132/1/20241,685,000
GO Improvement series 2013A - RefundingUtility revenues291,9790.40-2.50%11/21/20132/1/2024291,979
GO Utility revenue series 2013A - RefundingUtility revenues235,0000.40-2.50%11/21/20132/1/2024235,000
Total general obligation bonds outstanding $16,745,000
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
As of December 31, 2014, the annual debt service requirements to maturity for general obligation bonds are as
follows:
REVENUE BONDS
The City issues revenue bonds for which the City pledges only the income derived from the acquired or constructed
assets or redevelopment to pay the debt service. All of the bonds are serial bonds, which require semiannual
payments of principal and/or interest from the date the bonds are issued. There are a number of limitations and
restrictions contained in the bond indentures. The City is in compliance with all significant limitations and
restrictions. Revenue bonds outstanding at December 31, 2014 are as follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
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$14,343,021$7,580,397$2,401,979$212,460
Governmental ActivitiesBusiness-Type Activities
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$2,617,000
Business-type activities:
Public facility lease revenue series 2007BLiquor revenues5,040,0004.50-5.00%9/19/20072/1/20304,260,000
Total revenue bonds outstanding $6,877,000
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
As of December 31, 2014, the annual debt service requirements to maturity for revenue bonds are as follows:
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, 2014, and for the the year then ended, is as follows:
Total Remaining Current Year
Related Bond As Percentage Related Bond
Pledged Activity Principal of Revenue Principal Pledged
Revenue Financed and Interest Pledged and Interest Revenue
Project-specific Street
special assessments improvements $1,018,272 95% $1,045,368 $225,481
Project-specific Private
special assessments redevelopment 974,356 95% 99,301 104,975
Project-specific Public/Private
tax increment redevelopment 4,738,755 83% 280,668 227,213
Water and storm- Utility system
sewer net revenues improvements 2,614,440 7% 64,457 876,542
Annual appropriation Municipal store
of liquor net revenues construction 6,152,890 100% 379,030 383,030
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
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$2,617,000$1,566,675$4,260,000$1,892,888
Governmental ActivitiesBusiness-Type Activities
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2014 is as follows:
For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an
internal service fund; other postemployment benefit obligations are mainly liquidated by the general fund.
FUTURE CHANGES IN DEBT
In 2015, the City issued debt for the construction of a new library. Please reference Note 14 – Subsequent events.
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, 2014, there were Revenue Bonds of this type outstanding with an estimated aggregate principal
amount payable of approximately $19,490,000.
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes$12,685,000$ - ($425,000)$12,260,000$430,000
General obligation bonds with other pledged revenues2,258,021 - (175,000)2,083,021293,716
Revenue bonds 2,679,000 - (62,000)2,617,00068,000
Total bonds payable 17,622,021 - (662,000)16,960,021791,716
Compensated absences 976,143581,117(549,836)1,007,42450,371
Postemployment benefits other than pensions 152,15476,003(37,006)191,151 -
Total governmental activity long-term liabilities$18,750,318$657,120($1,248,842)$18,158,596$842,087
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues$2,436,979$ - ($35,000)$2,401,979$316,284
Revenue bonds 4,430,000 - (170,000)$4,260,000180,000
Total bonds payable 6,866,979 - (205,000)6,661,979496,284
Compensated absences 187,050137,857(168,270)156,6377,831
Total business-type activity long-term liabilities$7,054,029$137,857($373,270)$6,818,616$504,115
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 9 FUND EQUITY
A. CLASSIFICATIONS
At December 31, 2014, the City has various fund equities through legal restrictions and City Council
authorizations. A summary of such classifications are as follows:
B. DEFICIT FUND BALANCE
The following funds had fund deficits as of December 31, 2014. The City will finance this deficit through
TIF collections and internal sources in future years.
Nonmajor Funds:
Debt Service Funds:
TIF Scattered Site ($75,389)
($75,389)
2008A TaxMunicipalCapital ImpCap Eqp Capital
GeneralGO Housing State AidGeneral Replacement ImprovementNonmajor
FundImp BondStreetGovt BldgGen GovtPIRDevelopmentGov'tTotal
2014 Fund Balance
Nonspendable
Prepaid items 94,892$ -$ -$ -$ -$ -$ -$ 2,861$ 97,753$
Land Held for Resale - - - - - 45,600 167,761 1,306,315 1,519,676
Total nonspendable 94,892$ -$ -$ -$ -$ 45,600$ 167,761$ 1,309,176$ 1,617,429$
Restricted for:
Debt service -$ 193,889$ -$ -$ -$ -$ -$ 940,338$ 1,134,227$
Streets - - 421,499 - - - - - 421,499
Tax Increment - - - - - - - 1,304,831 1,304,831
Police Forfeiture - - - - - - - 33,577 33,577
Grant sponsored Rec Programs - - - - - - - 200,543 200,543
Captial Improvements/Replacement - - - - - - - 355,813 355,813
Public Housing - - - - - - - 918,360 918,360
Total restricted -$ 193,889$ 421,499$ -$ -$ -$ -$ 3,753,462$ 4,368,850$
Committed for:-
Downtown Parking Maint 30,548$ -$ -$ -$ -$ -$ -$ -$ 30,548$
Capital Improvements/Replacement - - - 1,152,593 4,354,418 1,088,482 1,752,355 2,030,326 10,378,174
Cable TV Operations - - - - - - - 704,843 704,843
Library Operations - - - - - - - 411,099 411,099
Senior Housing - - - - - - - 923,695 923,695
Redevelopment - - - - - - - 1,175,799 1,175,799
Total committed 30,548$ -$ -$ 1,152,593$ 4,354,418$ 1,088,482$ 1,752,355$ 5,245,762$ 13,624,158$
Unassigned:7,248,380$ -$ -$ -$ -$ -$ -$ (75,389)$ 7,172,991$
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
C. MINIMUM FUND BALANCE POLICY
The City Council has formally adopted a fund balance policy for the General Fund and the Library Fund (a
non-major fund). 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 Library fund equal to at least 45% of the next year’s
budgeted expenditures. At December 31, 2014, 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.
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.
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 2014. The PEPFF members are required to contribute 10.2% of
their annual covered salary in 2014. The City is required to contribute the following percentages of annual
covered payroll: 7.25% for Coordinated Plan GERF members, and 15.3% for PEPFF members. Employer
and employee contribution rates for GERF will increase in 2015; 6.5% for employees and 7.5%, for
employer PEPFF will increase in 2015; 10.8% for employees and 16.2% 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, GERF PEPFF
2012 $355,330 $406,131
2013 354,692 404,623
2014 367,797 428,286
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 2014, state aid was contributed to the plan. This state aid revenue and the related contribution
expense/expenditure of $88,554 are recognized in the accompanying financial statements for the year ended
December 31, 2014.
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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
2014, 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 2014, 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.
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014
Annual required contribution $79,088
Interest on net OPEB obligation 4,565
Adjustment to annual required contribution (7,650)
Annual OPEB cost 76,003
Contributions made by City (37,006)
Increase in net OPEB obligation 38,997
Net OPEB obligation-beginning of year 152,154
Net OPEB obligation-end of year $191,151
Comparative OPEB information for the curent and three prior years includes the following:
Percentage of
Year
Ended
Annual
OPEB Annual OPEB Net OPEB
December
31 Cost
Cost
Contributed Obligation
2011 78,016 59% 58,761
2012 77,340 40% 105,492
2013 76,467 39% 152,154
2014 76,003 49% 191,151
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
D. FUNDED STATUS AND FUNDING PROGRESS
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability
of events far into the future. Actuarially determined amounts are subject to continual revision as actual results
are compared to past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statements,
presents multi-year trend information, beginning in 2008, about the whether the actuarial value of plan assets is
increasing or decreasing over time, relative to the actuarial accrued liability for benefits.
E. METHODS AND ASSUMPTIONS
The projection of benefits for financial reporting purposes is based on the type of benefits provided by the
substantive plan at each valuation date and the historical pattern of sharing benefit costs between the City and
the participants to that point. The methods used include techniques designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations. 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 – 7%, declining to 5% after three years
Inflation rate assumed – less than 5% annual
Investment return assumed – 3% annual
Retirement age assumed - Public safety employees age 53, 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.
Most Recent
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued Liability
(AAL) - Projected
Unit Credit
Unfunded
AAL
(UAAL)
Funded
Ratio
Covered
Payroll
UAAL as a
Percentage
of Covered
Payroll
1/1/2014$ - $1,042,604$1,042,6040%$6,881,03315%
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 carries commercial insurance for other risks of loss, including employee health and disability
insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three fiscal years.
B. LITIGATION
The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which
the City is a defendant are either covered by insurance or development agreements; of an immaterial
amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs.
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.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
E. CONTRACTUAL COMMITMENTS
PENDING SALE
In 2012, the Housing and Redevelopment Authority (the HRA) 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. In 2014, the sale received conditional approval from the U.S. Department of Housing and Urban
Development (HUD), allowing for 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. The Parkview
Villa South portion of the facility is currently market-rate rental. As of December 31, 2014, the HRA and
Aeon are negotiating certain terms of the sale, with the sale expected to occur in mid-2015.
CONSTRUCTION
The City has entered into several contractual commitments for construction projects that are in process at
yearend. At December 31, 2014, the City’s obligation for such projects was approximately $278,800.
TAX INCREMENT FINANCING AGREEMENTS
Under the terms of various tax increment financing agreements, the City has commitments to reimburse
developers for certain qualifying redevelopment costs plus interest. These future reimbursements are
limited, however, to the future tax increment received from certain tax increment districts. The amount to
be paid under these agreements is not determinable at this time. The following table summarizes the
current year activity and contingent portions of these commitments:
Note 14 SUBSEQUENT EVENT
On March 4, 2015, the City issued $6,875,000 in general obligation bonds to fund the construction of a new Library
building. The interest rate on the bond varies between 2.5 and 3.25 percent through February 1, 2036.
TIFDistrict ExpendituresInterestExpendituresInterest
District EndsDeveloperReimbursedPaidAvailableAvailable
R82027Crestview ONDC1$ - $26,718$732,801$434,393
R82027Col Hts Tran Block - 10,760175,089 54,113
K22019Barnick - - 40,672 -
K22019Miske 15,3841,909 9,584 -
T62031BNC Bank - - 6,650,000 2,361,027
Current YearContingent on Future Tax Increment
Pledged revenue,
if any, in addition toOriginal InterestIssueFinal
general property taxesIssueRateDateMaturity
Governmental activities:
GO Library Bonds series 2015ANone$6,875,0002.50-3.25%3/4/20152/1/2036
83
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements, but may affect the City in future years:
Statement No. 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. 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.
Statement No. 72 Fair Value Measurement and Application. The provisions of this Statement are effective
for financial statements for periods beginning after June 15, 2015.
The effect these standards may have on future financial statements is not determinable at this time, but it is expected
that Statements No. 68 and No. 71 will have a material impact.
84
REQUIRED SUPPLEMENTARY INFORMATION
85
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget2013
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$8,328,896$8,328,896$8,551,642$222,746$8,142,980
Licenses and permits174,300174,300199,10824,808192,362
Intergovernmental1,488,4311,511,4541,558,81647,3621,420,796
Charges for services617,500635,793629,632(6,161)579,455
Fines and forfeitures130,000130,000123,633(6,367)129,132
Investment income:
Interest and dividends75,00075,00084,6439,64370,994
Change in fair value - - 238,924238,924(262,438)
Other revenues13,00019,89013,617(6,273)5,146
Total revenues10,827,127 10,875,333 11,400,015 524,682 10,278,427
Expenditures:
General government:
Council149,645149,645137,69411,951140,126
Manager430,728430,728416,35814,370409,338
Clerk97,31197,31191,8015,51047,725
Legal186,500186,500167,18219,318166,438
Finance784,000784,000771,57712,423737,280
Assessing123,622123,622124,571(949)122,395
General government buildings165,300165,300152,68012,620109,771
Contingencies50,00050,00019,68930,31130,548
Capital outlay22,00022,000 - 22,00013,868
Total general government2,009,106 2,009,106 1,881,552 127,554 1,777,489
Public safety:
Police3,873,0533,905,7093,788,095117,6143,699,070
Fire1,385,7561,401,3061,455,204(53,898)1,410,766
Capital outlay - - 4,073(4,073) -
Total public safety5,258,809 5,307,015 5,247,372 59,643 5,109,836
Public works:
Engineering335,932335,932280,16255,770263,184
Maintenance1,109,1011,109,1011,058,14950,952997,135
Sanitation145,133145,133136,3998,734120,011
Capital outlay17,00017,00062,896(45,896)117,946
Total public works1,607,166 1,607,166 1,537,606 69,560 1,498,276
Other Departments:
Parks and recreation1,634,1371,634,1371,463,093171,0441,459,848
Capital outlay - - - - 39,768
Total recreation1,634,137 1,634,137 1,463,093 171,044 1,499,616
Total expenditures10,509,218 10,557,424 10,129,623 427,801 9,885,217
Revenues over (under) expenditures317,909317,9091,270,392952,483393,210
2014
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget2013
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Other financing sources (uses):
Transfers in$409,058$409,058$428,651$19,593$382,500
Transfers out(722,500)(722,500)(722,500) - (455,342)
Total other financing sources (uses)(313,442)(313,442)(293,849)19,593 (72,842)
Net change in fund balance$4,467 $4,467 976,543$972,076 320,368
Fund balance - January 16,397,2776,076,909
Fund balance - December 31$7,373,820 $6,397,277
2014
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN
For The Year Ended December 31, 2014
Actuarial
Accrued UAAL as a
ActuarialActuarialLiability (AAL)UnfundedPercentage
ValuationValue of - ProjectedAALFunded Coveredof Covered
DateAssetsUnit Credit(UAAL)RatioPayrollPayroll
1/1/2008$ - $257,138$257,1380%$6,242,6414%
1/1/2011 - 775,238775,2380%6,923,10811%
1/1/2014 - 1,042,6041,042,6040%6,881,03315%
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTE TO RSI
December 31, 2014
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
89
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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, 2014
Total
Nonmajor
Special DebtCapital Governmental
AssetsRevenueServiceProjectFunds
Cash and investments$4,734,816$2,349,985$2,028,355$9,113,156
Receivables:
Accounts55,090 - - 55,090
Special assessments - 156,916 - 156,916
Taxes10,29428,423 - 38,717
Interest6,6001,0002,50010,100
Due from other governmental units428,243 - 4,864433,107
Interfund receivable98,01775,389 - 173,406
Prepayments2,861 - - 2,861
Real estate held for resale667,070676,565357,4781,701,113
Total assets$6,002,991$3,288,278$2,393,197$11,684,466
Liabilities and Fund Balance
Liabilities:
Accounts payable$55,309$28,412$5,393$89,114
Accrued salaries and withholdings payable27,578 - - 27,578
Due to other governmental units35,229 - - 35,229
Interfund payable475,124239,322 - 714,446
Unearned revenue70,872 - - 70,872
Deposits27,832 - - 27,832
Total liabilities691,944267,7345,393965,071
Deferred inflows of resources:
Unavailable revenue312,185174,199 - 486,384
Total deferred inflows of resources312,185174,1990486,384
Fund balance:
Nonspendable275,133676,565357,4781,309,176
Restricted1,508,2942,245,169 - 3,753,463
Committed3,215,435 - 2,030,3265,245,761
Unassigned - (75,389) - (75,389)
Total fund balance4,998,8622,846,3452,387,80410,233,011
Total liabilities, deferred inflows
of resources, and fund balance$6,002,991$3,288,278$2,393,197$11,684,466
94
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, 2014
Total
Nonmajor
Special Debt CapitalGovernmental
Revenue Service Project Funds
Revenues:
Taxes $1,051,548 $709,618$ - $1,761,166
Tax increment collections - 462,179 - 462,179
Licenses and permits 215,924 - - 215,924
Intergovernmental 454,354 300,000 - 754,354
Charges for services 974,257 - - 974,257
Fines and forfeitures 16,938 - - 16,938
Investment income:
Interest and dividends 48,796 12,860 17,200 78,856
Change in fair value 127,900 39,500 48,800216,200
Other revenues 52,309 - 3,000 55,309
Total revenues 2,942,026 1,524,157 69,000 4,535,183
Expenditures:
Current:
General government 27,761 - - 27,761
Public safety 8,955 - 9,375 18,330
Public works - - 513 513
Culture and recreation 783,698 - 661784,359
Community development 1,219,025 229,468 - 1,448,493
Capital outlay:
Public works - - - -
Community development 182,604 134,879 72,138389,621
Debt service:
Principal retirement - 607,000 - 607,000
Interest and fiscal charges - 725,785 - 725,785
Developer incentives - 55,123 - 55,123
Total expenditures 2,222,043 1,752,255 82,687 4,056,985
Revenues over (under) expenditures 719,983 (228,098)(13,687)478,198
Other financing sources (uses):
Transfers in - 406,566650,0001,056,566
Transfers out (127,632)(201,000) - (328,632)
Sale of capital assets - 51,488 - 51,488
Total other financing sources (uses)(127,632)257,054 650,000 779,422
Net change in fund balance 592,351 28,956 636,313 1,257,620
Fund balance - January 1 4,406,5112,817,3891,751,4918,975,391
Fund balance - December 31 $4,998,862$2,846,345$2,387,804$10,233,011
95
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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 and building inspections 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-though 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, 2014
Cable
Television Fund
225
Police
Forfeiture Fund
265
Library Fund
240
After-School
Programs Fund
261
Assets
Cash and investments$655,340$65,754$438,950$202,587
Receivables:
Accounts48,303 - - -
Taxes - - - -
Interest1,200 - 1,300400
Due from other governmental units - - - -
Interfund receivable - - - -
Prepayments - - 2,861 -
Real estate held for resale - - - -
Total assets$704,843 $65,754 $443,111 $202,987
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $11,564$1,881
Accrued salaries and withholdings payable - - 14,476563
Due to other governmental units - - 3,111 -
Interfund payable - - - -
Unearned revenue - 32,177 - -
Deposits - - - -
Total liabilities032,17729,1512,444
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources 0000
Fund balance:
Nonspendable - - 2,861 -
Restricted - 33,577 - 200,543
Committed704,843 - 411,099 -
Total fund balance 704,84333,577413,960200,543
Total liabilities, deferred inflows
of resources, and fund balance$704,843 $65,754 $443,111 $202,987
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
$146,540$208,843$655,770$209,134$42$259,253$1,892,603$4,734,816
- - - - - - 6,78755,090
- - - - - 10,294 - 10,294
2004001,100300 - 4001,3006,600
- - - - 304,244 - 123,999428,243
- - - - - 98,017 - 98,017
- - - - - - - 2,861
- - - - 667,070 - - 667,070
$146,740 $209,243 $656,870 $209,434 $971,356 $367,964 $2,024,689 $6,002,991
$ - $170$2,128$539$ - $276$38,751$55,309
- - - 6,552 - 5,987 - 27,578
- - - 25 - - 32,09335,229
- - - - 394,840 - 80,284475,124
- - 35,021 - - - 3,67470,872
- - - - - - 27,83227,832
017037,1497,116394,8406,263182,634691,944
- - - - 304,2447,941 - 312,185
0000304,2447,9410312,185
- - - - 272,272 - - 275,133
146,740209,073 - - - - 918,3611,508,294
- - 619,721202,318 - 353,760923,6943,215,435
146,740209,073619,721202,318272,272353,7601,842,0554,998,862
$146,740 $209,243 $656,870 $209,434 $971,356 $367,964 $2,024,689 $6,002,991
101
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2014
3
Cable
Television
Fund 225
Police
Forfeiture Fund
265
Library Fund
240
After-School
Programs Fund
261
Revenues:
Taxes$ - $ - $784,770$ -
Licenses and permits - - - -
Intergovernmental - - - 31,521
Fees/program revenues191,278 - 9,67918,147
Rents - - - -
Fines and forfeitures - 2,47914,459 -
Investment income:
Interest and dividends7,900 - 7,4002,500
Change in fair value22,600 - 20,1007,400
Other revenues:
Contributions - - - -
Miscellaneous - - - -
Total revenues221,7782,479836,40859,568
Expenditures:
Personal services1,950 - 559,89728,124
Supplies1,9892,02691,5656,167
Other services and charges23,82262758,85616,709
Capital outlay - - - -
Total expenditures27,7612,653710,31851,000
Revenues over (under) expenditures194,017(174)126,0908,568
Other financing sources (uses):
Transfers out(67,636) - (32,679) -
Total other financing sources (uses)(67,636)0(32,679)0
Net change in fund balance126,381(174)93,4118,568
Fund balance - January 1578,46233,751320,549191,975
Fund balance - December 31$704,843 $33,577 $413,960 $200,543
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
$ - $ - $ - $ - $ - $266,778$ - $1,051,548
- - - 215,924 - - - 215,924
- - - 60123,215 - 299,558454,354
- - 19,120 - - 30 - 238,254
- - 82,984 - - - 653,019736,003
- - - - - - - 16,938
1,7002,7008,0002,400 - 4,09812,09848,796
4,9007,90023,0007,300 - 7,30027,400127,900
27,3355,0338,000 - - - - 40,368
- - - 390 - - 11,55111,941
33,93515,633141,104226,074123,215278,2061,003,6262,942,026
- - - 215,006 - 154,80337,000996,780
18,1597,536652,578 - 4,03739,421173,543
4802,50747,68415,476 - 21,952681,003869,116
- - - - 61,021 - 121,583182,604
18,63910,04347,749233,06061,021180,792879,0072,222,043
15,2965,59093,355(6,986)62,19497,414124,619719,983
- - - (13,659) - (13,658) - (127,632)
000(13,659)0(13,658)0(127,632)
15,2965,59093,355(20,645)62,19483,756124,619592,351
131,444203,483526,366222,963210,078270,0041,717,4364,406,511
$146,740 $209,073 $619,721 $202,318 $272,272 $353,760 $1,842,055 $4,998,862
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Franchise fees$182,000$182,000$191,278$9,278$186,209
Investment income:
Interest and dividends - - 7,9007,9006,400
Change in fair value - - 22,60022,600(23,800)
Total revenues182,000182,000221,77839,778168,809
Expenditures:
Personal services5,4175,4171,9503,4671,753
Supplies - - 1,989(1,989)110
Other services and charges31,87831,87823,8228,05618,782
Total expenditures37,29537,29527,7619,53420,645
Revenues over expenditures144,705144,705194,01749,312148,164
Other financing sources (uses):
Transfers out(67,636)(67,636)(67,636) - (66,881)
Net change in fund balance$77,069 $77,069 126,381$49,312 81,283
Fund balance - January 1578,462497,179
Fund balance - December 31$704,843 $578,462
2014
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Forfeitures $2,479 $4,500
Expenditures:
Supplies 2,026 2,528
Total expenditures 2,653 2,528
Revenues over expenditures (174)1,972
Fund balance - January 1 33,751 31,779
Fund balance - December 31 $33,577 $33,751
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Intergovernmental $ - $27,200
Other - 2,411
Total revenues 0 29,611
Expenditures:
Other services and charges - 30,411
Total expenditures 0 30,411
Revenues over (under) expenditures 0 (800)
Other financing sources (uses):
Transfers out 0 3,582
Net change in fund balance 0 2,782
Fund balance (deficit) - January 1 - (2,782)
Fund balance (deficit) - December 31 $0 $0
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$784,770$784,770$784,770$ - $777,000
Charges for services7,8737,8739,6791,8069,345
Fines14,00014,00014,45945914,391
Investment income:
Interest and dividends3,5003,5007,4003,9004,611
Change in fair value - - 20,10020,100(17,200)
Other revenues:
Miscellaneous - - - - 145
Total revenues810,143 810,143 836,408 26,265 788,292
Expenditures:
Personal services586,631586,631559,89726,734507,077
Supplies108,250108,25091,56516,68595,176
Other services and charges82,58382,58358,85623,72759,359
Capital Outlay10,00010,000 - 10,000 -
Total expenditures777,464 777,464 710,318 67,146 661,612
Revenues over expenditures32,679 32,679 126,090 93,411 126,669
Other financing sources (uses):
Transfers out(32,679)(32,679)(32,679) - (31,752)
Net change in fund balance$0 $0 93,411 $93,411 94,917
Fund balance - January 1320,549225,632
Fund balance - December 31$413,960 $320,549
2014
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Intergovernmental $31,521 $56,069
Program revenue 18,147 19,913
Investment income:
Interest and dividends 2,500 2,200
Change in fair value 7,400 (8,100)
Total revenues 59,568 70,082
Expenditures:
Personal services 28,124 30,387
Supplies 6,167 7,186
Other services and charges 16,709 19,149
Total expenditures 51,000 56,722
Revenues over expenditures 8,568 13,360
Fund balance - January 1 191,975 178,615
Fund balance - December 31 $200,543 $191,975
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Investment income:
Interest and dividends$1,700$1,600
Change in fair value4,900(6,100)
Other revenue:
Contributions 27,33521,165
Total revenues33,93516,665
Expenditures:
Supplies 18,15912,190
Other services and charges4801,425
Total expenditures18,63913,615
Revenues over (under) expenditures15,2963,050
Fund balance - January 1131,444128,394
Fund balance - December 31$146,740 $131,444
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Investment income:
Interest and dividends $2,700 $2,700
Change in fair value 7,900 (9,800)
Contributions 5,033 1,423
Total revenues 15,633 (5,677)
Expenditures:
Supplies 7,536 2,424
Other services and charges 2,507 2,035
Total expenditures 10,043 4,459
Revenues over (under) expenditures 5,590 (10,136)
Other financing sources (uses):
Transfers out - (3,582)
Total other financing sources (uses)0 (3,582)
Net change in fund balance 5,590 (13,718)
Fund balance - January 1 203,483 217,201
Fund balance - December 31 $209,073 $203,483
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Fees/program revenue $19,120$19,380
Rents 82,984 79,709
Investment income:
Interest and dividends 8,000 6,500
Change in fair value 23,000(24,200)
Other 8,000 1,500
Total revenues 141,104 82,889
Expenditures:
Other services and charges 47,749 -
Revenues over expenditures 93,355 82,889
Fund balance - January 1 526,366443,477
Fund balance - December 31 $619,721$526,366
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Licenses and permits$185,000$185,000$215,924$30,924$219,846
Intergovernmental - - 6060 -
Investment income:
Interest and dividends - - 2,4002,4002,400
Change in fair value - - 7,3007,300(8,800)
Miscellaneous250250390140150
Total revenues185,250 185,250 226,074 40,824 213,596
Expenditures:
Personal services196,737196,737215,006(18,269)155,483
Supplies1,8251,8252,578(753)1,704
Other services and charges22,20322,20315,4766,72713,488
Total expenditures220,765 220,765 233,060 (12,295)170,675
Revenues over (under) expenditures(35,515)(35,515)(6,986)28,529 42,921
Other financing sources (uses):
Transfers out(13,569)(13,569)(13,659)(90)(12,848)
Net change in fund balance($49,084)($49,084)(20,645)$28,439 30,073
Fund balance - January 1222,963192,890
Fund balance - December 31$202,318 $222,963
2014
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, 2014
With Comparative Amounts For The Year Ended December 31, 2013
20142013
Revenues:
Intergovernmental$123,215$583,384
Total revenues123,215583,384
Expenditures:
Other services and charges - 100,000
Capital outlay 61,021411,826
Total expenditures61,021511,826
Revenues over (under) expenditures62,19471,558
Fund balance - January 1210,078138,520
Fund balance - December 31$272,272 $210,078
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted AmountsFinal Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$267,887$267,887$266,778($1,109)$269,395
Fees/program revenues37,00037,00030(36,970)60
Investment income:
Interest and dividends - - 4,0984,0982,502
Change in fair value - - 7,3007,300(7,600)
Total revenues304,887304,887278,206(26,681)264,357
Expenditures:
Personal services208,553208,553154,80353,750201,805
Other services and charges49,37049,37021,95227,41820,052
Supplies7507504,037(3,287)770
Total expenditures258,673258,673180,79277,881222,627
Revenues over (under) expenditures46,21446,21497,41451,20041,730
Other financing sources (uses):
Transfers out(13,659)(13,659)(13,658)1(12,848)
Net change in fund balance$32,555$32,55583,756$51,20128,882
Fund balance - January 1270,004241,122
Fund balance - December 31$353,760 $270,004
2014
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUNDS - HOUSING AND REDEVELOPMENT AUTHORITY (COMPONENT UNIT)Statement 27
COMBINING BALANCE SHEET
December 31, 2014
ParkviewParkviewTotal
VillaVillaHousing and
NorthSouthRedevelopment
Fund 203Fund 213Authority
Assets
Cash and investments$912,637$979,966$1,892,603
Receivables:
Accounts5,5391,2486,787
Interest - 1,3001,300
Due from other governmental units123,999 - 123,999
Total assets$1,042,175 $982,514 $2,024,689
.
Liabilities and Fund Balance
Liabilities:
Accounts payable $26,636 $12,115 $38,751
Due to other governmental units 20,767 11,326 32,093
Interfund payable 55,505 24,779 80,284
Unearned revenue 2,642 1,032 3,674
Deposits 18,264 9,568 27,832
Total liabilities 123,814 58,820 182,634
Fund balance:
Restricted 918,361 - 918,361
Committed - 923,694 923,694
Total fund balance 918,361 923,694 1,842,055
Total liabilities and fund balance $1,042,175 $982,514 $2,024,689
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, 2014
Parkview Parkview Total
Villa Villa Housing and
North SouthRedevelopment
Fund 203 Fund 213 Authority
Revenues:
Intergovernmental $299,558 $ - $299,558
Rents 359,900 293,119 653,019
Investment income:
Interest and dividends 2,698 9,400 12,098
Change in fair value - 27,400 27,400
Other revenues:
Miscellaneous 6,611 4,940 11,551
Total revenues 668,767 334,859 1,003,626
Expenditures:
Personal services 25,500 11,500 37,000
Supplies 32,357 7,064 39,421
Other services and charges 488,692 192,311 681,003
Capital outlay 121,583 - 121,583
Total expenditures 668,132 210,875 879,007
Revenues over (under) expenditures 635 123,984 124,619
Fund balance - January 1 917,726 799,710 1,717,436
Fund balance - December 31 $918,361 $923,694 $1,842,055
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted Amounts Final Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental revenue $200,000$200,000$299,558$99,558$139,078
Rents 358,251358,251359,9001,649358,201
Investment income:
Interest and dividends 7,3747,3742,698(4,676)3,168
Other revenues 500 5006,6116,1117,349
Total revenues 566,125566,125668,767102,642507,796
Expenditures:
Personal services 25,50025,50025,500 - 25,500
Supplies 24,69024,69032,357(7,667)18,412
Other services and charges 459,061459,061488,692(29,631)408,592
Capital outlay 89,00089,000121,583(32,583) -
Total expenditures 598,251598,251668,132(69,881)452,504
Revenues over (under) expenditures ($32,126)($32,126)635$32,76155,292
Fund balance - January 1 917,726 862,434
Fund balance - December 31 $918,361 $917,726
2014
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, 2014
With Comparative Actual Amounts For The Year Ended December 31, 2013
Variance with
Budgeted Amounts Final Budget-2013
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Rents $314,250$314,250$293,119($21,131)$279,923
Investment income:
Interest and dividends 3,500 3,500 9,400 5,900 9,100
Change in fair value - - 27,40027,400(33,800)
Other 2,950 2,950 4,940 1,990 3,060
Total revenues 320,700320,700334,85914,159258,283
Expenditures:
Personal services 11,50011,50011,500 - 11,500
Supplies 8,845 8,845 7,064 1,78116,813
Other services and charges 219,505219,505192,31127,194179,374
Capital outlay 35,00035,000 - 35,000 -
Total expenditures 274,850274,850210,87563,975207,687
Revenues over expenditures $45,850$45,850123,984$78,13450,596
Fund balance - January 1 799,709 749,113
Fund balance - December 31 $923,693 $799,709
2014
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. Both the City and the Economic Development Authority issue
bonds.
Tax Increment Financing Funds – are separate funds used to account for the revenues and
expenditures of each separate Tax Increment Financing District. The Economic Development
Authority authorizes and administers tax increment activities within the City.
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2014
EDA
Component
Unit
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
Tax Increment
Bonds Fund
376
Assets
Cash and investments$131,065$468,465$247,619$243,933$180,594
Receivables:
Taxes1,1483,1341,890 - -
Assessments - - - 156,916 -
Interest - - - - 300
Interfund receivable - - - - 75,389
Land held for resale - - - - 427,477
Total assets$132,213$471,599$249,509$400,849$683,760
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ - $185
Interfund payable - - - 156,916 -
Total liabilities000156,916185
Deferred inflows of resources:
Unavailable revenue - - - 156,916 -
Total deferred inflows of resources000156,9160
Fund balance:
Nonspendable - - - - 427,477
Restricted132,213471,599249,50987,017256,098
Unassigned - - - - -
Total fund balance132,213471,599249,50987,017683,575
Total liabilities, deferred inflows
of resources, and fund balance$132,213$471,599$249,509$400,849$683,760
.
120
Statement 31
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
TIF Scattered
Site Fund 391
Total
Nonmajor Debt
Service Funds
$ - $79,619$72,799$376,625$293,432$255,834$ - $2,349,985
- 291 - 88121,079 - - 28,423
- - - - - - - 156,916
- 100100 - 500 - - 1,000
- - - - - - - 75,389
- - - 249,088 - - - 676,565
$0$80,010$72,899$626,594$315,011$255,834$0$3,288,278
$ - $8,831$18,924$185$287$ - $ - $28,412
- 7,017 - - - - 75,389239,322
015,84818,924185287075,389267,734
- 227 - - 17,056 - - 174,199
02270017,05600174,199
- - - 249,088 - - - 676,565
- 63,93553,975377,321297,668255,834 - 2,245,169
- - - - - - (75,389)(75,389)
063,93553,975626,409297,668255,834(75,389)2,846,345
$0$80,010$72,899$626,594$315,011$255,834$0$3,288,278
EDA Component Unit
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2014
EDA
Component
Unit
G.O. Street
Rehabilitation
Bonds 2007
Fund 341
G.O. Public
Safety Center
Bonds 2008B
Fund 343
G.O. Public
Facilities Bonds
2009A Fund 344
G.O.
Improvement /
Revenue
Bonds 2013A
Fund 345
Tax Increment
Bonds Fund
376
Revenues:
Intergovernmental$ - $300,000$ - $ - $ -
Taxes130,497355,500223,621 - -
Tax increment collections - - - - -
Investment income:
Interest and dividends1901902103802,100
Change in fair value3005003001,2006,100
Total revenues130,987656,190224,1311,5808,200
Expenditures:
Current:
Other services and charges - - - - 1,419
Capital outlay:
Community development - - - - 59,490
Debt service:
Principal retirement105,000215,000170,000 - -
Interest and fiscal charges22,538410,870124,0993,434 -
Developer incentives - - - - -
Total expenditures127,538625,870294,0993,43460,909
Revenues over (under) expenditures3,44930,320(69,968)(1,854)(52,709)
Other financing sources (uses):
Transfers in - - 77,351128,215 -
Transfers out - - - - -
Sale of capital assets - - - - 51,488
Total other financing sources (uses)0077,351128,21551,488
Net change in fund balance3,44930,3207,383126,361(1,221)
Fund balance - January 1128,764441,279242,126(39,344)684,796
Fund balance - December 31$132,213$471,599$249,509$87,017$683,575
122
Statement 32
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
TIF Scattered
Site Fund 391
Total
Nonmajor
Debt Service
Funds
$ - $ - $ - $ - $ - $ - $ - $300,000
- - - - - - - 709,618
61,75123,98441,71452,867281,863 - - 462,179
1,1009007002,7902,9001,400 - 12,860
4,4002,6002,0009,5007,9004,700 - 39,500
67,25127,48444,41465,157292,6636,10001,524,157
217,5491,2461,2461,4226,586 - - 229,468
- - - - - - 75,389134,879
- - - 55,000 - 62,000 - 607,000
- - - 23,605 - 141,239 - 725,785
- 17,46937,654 - - - - 55,123
217,54918,71538,90080,0276,586203,23975,3891,752,255
(150,298)8,7695,514(14,870)286,077(197,139)(75,389)(228,098)
- - - - - 201,000 - 406,566
- - - - (201,000) - - (201,000)
- - - - - - - 51,488
0000(201,000)201,0000257,054
(150,298)8,7695,514(14,870)85,0773,861(75,389)28,956
150,29855,16648,461641,279212,591251,973 - 2,817,389
$0$63,935$53,975$626,409$297,668$255,834($75,389)$2,846,345
EDA Component Unit
123
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124
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the
year:
Economic Development Authority – a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is to foster
economic development in the City.
EDA Housing Maintenance Fund 408 – established to account for activities to maintain the
quality and quantity of housing in the City.
Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This
includes park dedication fees when available, the use of which is limited by state statute to park
improvements.
Infrastructure Replacement Fund 430 – used to fund replacement of City infrastructure.
Capital Equipment Fire Fund 439 – used to fund replacement of fire department capital assets.
This fund is limited by state statute to fire department expenditures. The original source of the
assets in this fund was excess funding in a fire pension plan.
Capital Equipment Cable TV Fund 440 – used to fund replacement of cable television capital
assets.
Capital Building Library Fund 450 – used to fund replacement of the library building.
125
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126
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 33
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2014
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund 412
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Capital
Building
Library Fund
450
Total
Nonmajor
Capital
Project Funds
Assets
Cash and investments$ - $314,146$1,104,107$53,563$69,900$486,639$2,028,355
Due from other governments - 4,864 - - - - 4,864
Receivables:
Interest - 4001,900100100 - 2,500
Real estate held for resale357,478 - - - - - 357,478
Total assets$357,478$319,410$1,106,007$53,663$70,000$486,639$2,393,197
Liabilities and Fund Balance
Liabilities:
Accounts payable$ - $2,120$ - $ - $ - $3,273$5,393
Total liabilities02,1200003,2735,393
Fund balance:
Nonspendable 357,478 - - - - - 357,478
Committed - 317,2901,106,00753,66370,000483,3662,030,326
Total fund balance357,478317,2901,106,00753,66370,000483,3662,387,804
Total liabilities and fund balance$357,478$319,410$1,106,007$53,663$70,000$486,639$2,393,197
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 34
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2014
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvement
Parks Fund
412
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Capital
Building
Library
Fund 450
Total
Nonmajor
Capital
Project Funds
Revenues:
Intergovernmental$ - $ - $ - $ - $ - $ - $ -
Investment income:
Interest and dividends - 2,30013,300700900 - 17,200
Change in fair value - 5,80038,2002,3002,500 - 48,800
Contributions - 3,000 - - - - 3,000
Total revenues 011,10051,5003,0003,400 069,000
Expenditures:
Current:
Other services and charges - 661 5139,375 - - 10,549
Capital outlay - - - - - 72,13872,138
Total expenditures 0 661 5139,375 072,13882,687
Revenue over (under) expenditures 010,43950,987(6,375)3,400(72,138)(13,687)
Other financing sources (uses):
Transfers in - 250,000100,000 - - 300,000650,000
Total other financing sources (uses)0250,000100,000 0 0300,000650,000
Net change in fund balance 0260,439150,987(6,375)3,400227,862636,313
Fund balance - January 1 357,47856,851955,02060,03866,600255,5041,751,491
Fund balance - December 31 $357,478$317,290$1,106,007$53,663$70,000$483,366$2,387,804
128
ENTERPRISE FUNDS
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 sanitary 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 management.
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, 2014
With Comparative Totals for December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets:20142013
Current assets:
Cash and cash equivalents$37,091$263,585$553,191$236,784$1,090,651$998,616
Receivables:
Accounts (net of allowance for
uncollectables)603,150 - - - 603,150799,898
Interest1,200400 - - 1,6002,700
Interfund receivable9,629 - - - 9,6292,764
Inventory - at cost7,392 - - - 7,3927,317
Total current assets658,462263,985553,191236,7841,712,4221,811,295
Noncurrent assets:
Capital assets:
Land45,223 - - - 45,22345,223
Buildings750,272 - - - 750,272559,826
Equipment515,901 - - - 515,901477,897
Infrastructure8,581,422 - - - 8,581,4228,346,965
Construction in process - - 516,524 - 516,524473,821
Total capital assets9,892,8180516,524010,409,3429,903,732
Less: accumulated depreciation(4,717,796) - - - (4,717,796)(4,492,495)
Total capital assets (net of
accumulated depreciation)5,175,0220516,52405,691,5465,411,237
Total noncurrent assets5,175,0220516,52405,691,5465,411,237
Total assets5,833,484263,9851,069,715236,7847,403,9687,222,532
Liabilities :
Current liabilities:
Accounts payable11,69314,66411,961 - 38,318192,850
Accrued salaries and withholdings payable9,126 - - - 9,1268,571
Contracts payable - retained percentage - - 5,683 - 5,68316,830
Due to other governmental units110,493 - 225,083 - 335,576317,067
Interfund payable - - - 195,000195,000259,000
Accrued interest payable - - - 7,2077,2072,789
Compensated absences payable - current924 - - - 9241,635
Bonds payable - current - - - 177,028177,02835,000
Total current liabilities 132,23614,664242,727379,235768,862833,742
Noncurrent liabilities:
Compensated absences payable - noncurrent17,566 - - - 17,56625,619
Bonds payable - noncurrent - - - 1,000,7961,000,7961,177,824
Total noncurrent liabilities17,566001,000,7961,018,3621,203,443
Total liabilities149,80214,664242,7271,380,0311,787,2242,037,185
Net position:
Net investments in capital assets5,175,022 - 516,524(627,824)5,063,7224,763,413
Restricted - - 550,000(350,834)199,16671,771
Unrestricted508,660249,321(239,536)(164,589)353,856350,163
Total net position$5,683,682 $249,321 $826,988 ($1,143,247)$5,616,744 $5,185,347
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:20142013
Charges for services:
Customer services $64,516$ - $ - $ - $ - $64,516$113,915
Penalties 96,966 - - - - 96,96689,224
Charges for sales:
Water 2,532,926 - - - - 2,532,9262,538,362
Meter 17,34284,530 - - - 101,872273,547
Total operating revenues 2,711,75084,530 0 0 02,796,2803,015,048
Operating expenses:
Cost of sales 1,200,008 - - - - 1,200,0081,216,296
Distribution 656,202 - 150,892 - - 807,094794,222
Administration 23,392 - - - - 23,39220,699
Depreciation 232,807 - - - - 232,807229,309
Total operating expenses 2,112,409 0 150,892 0 0 2,263,301 2,260,526
Net income (loss) from operations 599,341 84,530 (150,892)0 0 532,979 754,522
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 5,5002,1004,900600 - 13,10013,200
Change in fair value 12,9005,20017,2001,700 - 37,000(49,300)
Intergovernmental 0 - - - - - 1,971
Miscellaneous revenues 13,349 - - - - 13,3495,127
Miscellaneous expense - - (4,557) - - (4,557)(1)
Interest and fiscal charges - - - (30,494) - (30,494)(62,763)
Total nonoperating revenues (expenses)31,749 7,300 17,543 (28,194)0 28,398 (91,766)
Net income (loss) before transfers 631,090 91,830 (133,349)(28,194)0 561,377 662,756
Transfers in 234,45725,000170,400285,000(714,857) - -
Transfers out (610,380) - (234,457) - 714,857(129,980)(127,647)
Total transfers (375,923)25,000 (64,057)285,000 0 (129,980)(127,647)
Change in net position 255,167 116,830 (197,406)256,806 0 431,397 535,109
Total net position - January 1 5,428,515132,4911,024,394(1,400,053) - 5,185,347 4,650,238
Total net position - December 31 $5,683,682$249,321$826,988($1,143,247)$0$5,616,744$5,185,347
Totals
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from customers$2,988,471$2,791,900
Cash paid to suppliers for goods and services(1,681,703)(1,435,452)
Cash payments to employees for services(490,906)(363,810)
Net cash provided by (used in) from operating activities815,862992,638
Cash flows from noncapital financing activities:
Transfers out (129,980)(127,647)
Intergovernmental - 1,971
Interfund receivable repaid by (advanced to) other funds(6,865)59,598
Interfund payable (repaid to) advanced by other funds(64,000)(140,497)
Net cash flows provided by (used in) noncapital financing activities(200,845)(206,575)
Cash flows from capital and related financing activities:
Acquisition of capital assets (513,106)(482,202)
Bonds issued - 987,824
Principal payments - bonds (35,000)(726,490)
Interest and fiscal charges (26,076)(74,560)
Net cash flows provided by (used in) capital and related financing activities (574,182)(295,428)
Cash flows from investing activities:
Investment income
Interest and dividends 14,200 15,100
Change in fair value 37,000 (49,300)
Net cash flows provided by (used in) investing activities 51,200 (34,200)
Net increase (decrease) in cash and cash equivalents 92,035 456,435
Cash and cash equivalents - January 1 998,616 542,181
Cash and cash equivalents - December 31 $1,090,651 $998,616
Reconciliation of operating income to net cash flows from operating activities:
Operating income $532,979 $754,522
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 232,807 229,309
Miscellaneous revenues 13,349 5,127
Miscellaneous expense (4,557) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 196,748 (228,275)
(Increase) decrease in inventory, at cost (75)(3,132)
Increase (decrease) in accounts payable (154,532)186,628
Increase (decrease) in accrued salaries and withholdings payable 555 (651)
Increase (decrease) in due to other governmental units (11,147)16,830
Adjustment for nonoperating portion 18,509 33,581
Increase (decrease) in deposits payable - (3,000)
Increase (decrease) in compensated absences payable (8,774)1,699
Total adjustments 282,883 238,116
Net cash flows provided by (used in) operating activities $815,862 $992,638
132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals for December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:20142013
Current assets:
Cash and cash equivalents $6,317$365,452$693,537$43,139$ - $1,108,445$1,375,452
Receivables:
Accounts (net of allowance for
uncollectibles)418,066 - - - - 418,066419,048
Interest - 500 900 - - 1,4003,000
Interfund receivables - - 201,000 - (201,000) - -
Prepayments 81,233 - - - - 81,23381,254
Total current assets 505,616365,952895,43743,139(201,000)1,609,1441,878,754
Noncurrent assets:
Capital assets:
Land 36,586 - - - - 36,58636,586
Buildings 403,659 - - - - 403,659403,659
Equipment 932,135 - - - - 932,135939,340
Construction in progress - - 10,583 - - 10,583 -
Infrastructure6,154,219 - - - - 6,154,2196,154,219
Total capital assets 7,526,599 010,583 0 07,537,1827,533,804
Less: accumulated depreciation (4,440,318) - - - - (4,440,318)(4,416,306)
Net capital assets 3,086,281 010,583 0 03,096,8643,117,498
Total noncurrent assets 3,086,281 0 10,583 0 0 3,096,864 3,117,498
Total assets 3,591,897365,952906,02043,139(201,000)4,706,0084,996,252
Liabilities:
Current liabilities:
Accounts payable 1,62614,664 - - - 16,290117,838
Accrued salaries and withholdings payable 5,845 - 53 - - 5,8986,137
Contracts payable - retained percentage 31,100 - 5,071 - - 36,17131,100
Interfund payable 201,000 (201,000) - -
Accrued interest payable - - - 2,329 - 2,329 -
Compensated absences payable - current 1,785 - - - - 1,7852,313
Bonds payable - current - - - 35,000 - 35,000 -
Total current liabilities 241,35614,6645,12437,329(201,000)97,473157,388
Noncurrent liabilities:
Compensated absences payable - noncurrent 33,921 - - - - 33,92136,236
Bonds payable - noncurrent - - - 330,000 - 330,000365,000
Total noncurrent liabilities 33,921 0 0330,000 - 363,921401,236
Total liabilities 275,27714,6645,124367,329(201,000)461,394558,624
Net position:
Net investments in capital assets3,086,281 - 10,583(5,000) - 3,091,8643,117,498
Restricted - - 360,000(319,770) - 40,230 -
Unrestricted 230,339351,288530,313580 - 1,112,5201,320,130
Total net position $3,316,620$351,288$900,896($324,190)$0$4,244,614$4,437,628
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Interfund
Eliminations
Operating revenues:20142013
Charges for services:
Sewer service charges $1,626,678$ - $ - $ - $ - $1,626,678$1,592,145
Operating expenses:
Disposal 975,068 - - - - 975,068923,621
Collection 362,098 - 221,148 - - 583,246394,352
Administration 23,192 - - - - 23,19228,252
Depreciation 157,517 - - - - 157,517138,346
Total operating expenses 1,517,875 0221,148 0 01,739,0231,484,571
Net income (loss) from operations 108,803 0(221,148)0 0(112,345)107,574
Nonoperating revenues (expenses):
Investment income
Interest and dividends - 3,20010,300 30 - 13,53015,300
Change in fair value - 9,40032,200100 - 41,700(56,800)
Miscellaneous revenues 400 - - - - 4001,641
Gain on sale of capital assets - - - - - - 25,000
Interest and fiscal charges - - - (6,320) - (6,320)(5,000)
Total nonoperating revenues (expenses)400 12,600 42,500 (6,190)0 49,310 (19,859)
Net income (loss) before transfers 109,203 12,600 (178,648)(6,190)0 (63,035)87,715
Transfers in - 25,000117,08747,000(189,087) - -
Transfers out (319,066) - - - 189,087(129,979)(527,646)
Total transfers (319,066)25,000 117,087 47,000 0 (129,979)(527,646)
Change in net position (209,863)37,600 (61,561)40,810 0 (193,014)(439,931)
Net position - January 1 3,526,483313,688962,457(365,000) - 4,437,6284,877,559
Net position - December 31 $3,316,620$351,288$900,896($324,190)$0$4,244,614$4,437,628
Totals
134
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2014
With Comparative Totals for Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from customers$1,628,060 $1,594,519
Cash paid to suppliers for goods and services(1,487,127)(1,003,397)
Cash payments to employees for services(193,917)(254,079)
Net cash flows provided by (used in) operating activities(52,984)337,043
Cash flows from noncapital financing activities:
Transfers out (129,979)(527,646)
Interfund receivable repaid by (advanced to) other funds - 22,858
Net cash flows provided by (used in) noncapital financing activities(129,979)(504,788)
Cash flows from capital and related financing activities:
Acquisition of capital assets(136,883)(148,707)
Sale of capital assets - 25,000
Bonds issued - 365,000
Interest and fiscal charges(3,991)(5,000)
Net cash flows provided by (used in) capital and related financing activities(140,874)236,293
Cash flows from investing activities:
Investment income
Interest and dividends15,13016,700
Change in fair value 41,700(56,800)
Net cash flows provided by (used in) investing activities56,830 (40,100)
Net increase (decrease) in cash and cash equivalents(267,007)28,448
Cash and cash equivalents - January 11,375,452 1,347,004
Cash and cash equivalents - December 31$1,108,445 $1,375,452
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($112,345)$107,574
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense157,517138,346
Miscellaneous revenues 4001,641
Changes in assets and liabilities:
(Increase) decrease in accounts receivable982733
(Increase) decrease in prepayments21(4,286)
Increase (decrease) in accounts payable(101,548)102,224
Increase (decrease) in accrued salaries and withholdings payable(239)1,404
Increase (decrease) in contracts payable -retained percentage5,071(11,815)
Increase (decrease) compensated absences payable(2,843)1,222
Total adjustments59,361 229,469
Net cash flows provided by (used in) operating activities($52,984)$337,043
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals for December 31, 2013
20142013
Assets:
Current assets:
Cash and cash equivalents $1,163,446 $1,038,897
Receivables:
Accounts (net of allowance for uncollectibles)498,042 489,754
Interest 2,100 2,400
Due from other governmental units 64,334 33,541
Total current assets 1,727,922 1,564,592
Noncurrent assets:
Capital assets:
Buildings 56,000 56,000
Equipment 112,893 112,893
Total capital assets 168,893 168,893
Less: accumulated depreciation (122,257)(118,616)
Total capital assets (net of accumulated depreciation)46,636 50,277
Total noncurrent assets 46,636 50,277
Total assets 1,774,558 1,614,869
Liabilities:
Current liabilities:
Accounts payable 128,877 235,036
Accrued salaries and withholdings payable 2,265 1,822
Compensated absences payable - current 220 369
Total current liabilities 131,362 237,227
Noncurrent liabilities:
Compensated absences payable - noncurrent 4,186 5,778
Total liabilities 135,548 243,005
Net position:
Net investments in capital assets 46,636 50,277
Unrestricted 1,592,374 1,321,587
Total net position $1,639,010 $1,371,864
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Operating revenues:
Refuse service charges $1,887,038 $1,826,226
Operating expenses:
Collection and disposal 1,493,372 1,446,549
Administration 61,177 52,368
Recycling 82,291 67,545
Hazardous waste 9,551 5,302
Depreciation 3,641 3,641
Total operating expenses 1,650,032 1,575,405
Net income from operations 237,006 250,821
Nonoperating revenues:
Investment income
Interest and dividends 14,500 11,900
Change in fair value 41,300 (44,200)
Intergovernmental 91,421 68,565
Total nonoperating revenues 147,221 36,265
Net income before transfers 384,227 287,086
Transfers out (117,081)(115,544)
Change in net position 267,146 171,542
Total net position - January 1 1,371,864 1,200,322
Total net position - December 31 $1,639,010 $1,371,864
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2014
With Comparative Totals for Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from customers$1,847,957$1,774,330
Cash paid to suppliers for goods and services(1,668,933)(1,381,372)
Cash payments to employees for services(84,915)(66,773)
Net cash flows provided by (used in) operating activities94,109 326,185
Cash flows from noncapital financing activities:
Transfers out (117,081)(115,544)
Intergovernmental 91,42168,565
Net cash flows provided by (used in) noncapital financing activities(25,660)(46,979)
Cash flows from investing activities:
Investment income
Interest and dividends14,80011,800
Change in fair value41,300(44,200)
Net cash flows provided by (used in) investing activities56,100 (32,400)
Net increase in cash and cash equivalents124,549 246,806
Cash and cash equivalents - January 11,038,897792,091
Cash and cash equivalents - December 31$1,163,446 $1,038,897
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $237,006$250,821
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense3,6413,641
Changes in assets and liabilities:
(Increase) decrease in accounts receivable(8,288)(23,389)
(Increase) decrease due from other governmental units(30,793)(28,507)
Increase (decrease) in accounts payable(106,159)122,138
Increase (decrease) in accrued salaries and withholdings payable443355
Increase (decrease) compensated absences payable(1,741)1,126
Total adjustments(142,897)75,364
Net cash flows provided by (used in) operating activities$94,109$326,185
138
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals for December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets:20142013
Current assets:
Cash and cash equivalents$222,159$5,000$903,945$123,415$1,254,519$1,234,723
Receivables:
Accounts (net of allowance for
uncollectibles)94,299 - - - 94,299101,517
Interest600 - 300 - 9001,200
Due from other governmental units - - 48,104 - 48,104735
Total current assets317,0585,000952,349123,4151,397,8221,338,175
Noncurrent assets:
Capital assets:
Land260,690 - - - 260,690260,690
Equipment298,614 - - - 298,614190,653
Infrastructure1,518,512 - - - 1,518,5121,518,512
Construction in process - - 64,456 - 64,45617,087
Total capital assets2,077,816064,45602,142,2721,986,942
Less: accumulated depreciation(888,980) - - - (888,980)(800,334)
Net capital assets1,188,836064,45601,253,2921,186,608
Total noncurrent assets1,188,836064,45601,253,2921,186,608
Total assets1,505,8945,0001,016,805123,4152,651,1142,524,783
Liabilities:
Current liabilities:
Accounts payable156 - 3,632 - 3,78816,850
Accrued salaries and withholdings payable3,187 - 53 - 3,2402,623
Interfund payable - - - 50,00050,00066,000
Contracts payable - - - - - 1,799
Accrued interest payable - - - 4,3474,347 -
Compensated absences payable - current 97 - - - 97 82
Bonds payable - current - - - 104,256104,256 -
Total current liabilities 3,440 03,685158,603165,72887,354
Noncurrent liabilities:
Compensated absences payable - noncurrent 1,846 - - - 1,8461,284
Bonds payable - noncurrent - - - 754,899754,899859,155
Total noncurrent liabilities1,84600754,899756,745860,439
Total liabilities5,28603,685913,502922,473947,793
Net position:
Net investment in capital assets1,188,836 - 64,456(119,155)1,134,1371,065,366
Restricted - - 740,000(622,245) 117,7558,420
Unrestricted 311,7725,000208,664(48,687)476,749503,204
Total net position $1,500,608$5,000$1,013,120($790,087)$1,728,641$1,576,990
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
20142013
Operating revenues:
Storm sewer service charges$365,485$ - $ - $ - $ - $365,485$367,218
Operating expenses:
Collection207,949 - 161 - - 208,110196,722
Administration4,404 - - - - 4,4043,210
Depreciation88,646 - - - - 88,64683,795
Total operating expenses300,999016100301,160283,727
Net income (loss) from operations64,4860(161)0064,32583,491
Nonoperating revenues (expenses):
Investment income
Interest and dividends4,400 - 8,310190 - 12,9006,200
Change in fair value12,900 - 27,800600 - 41,300(23,100)
Intergovernmental - - - - - - 14,335
Miscellaneous revenues899 - - - - 8991,707
Interest and fiscal charges - - - (15,142) - (15,142)(24,938)
Total nonoperating
revenues (expenses)18,199 0 36,110 (14,352)0 39,957 (25,796)
Net income (loss) before transfers
and capital contributions82,685 0 35,949 (14,352)0 104,282 57,695
Transfers in - 5,000 - 141,000(146,000) - 400,000
Transfers out(146,000) - - - 146,000 - -
Capital contributions - intergovernmental - - 47,369 - - 47,369 -
Total transfers and contributions(146,000)5,000 47,369 141,000 0 47,369 400,000
Change in net position (63,315)5,000 83,318 126,648 0 151,651 457,695
Net position - January 1 1,563,923 - 929,802(916,735) - 1,576,9901,119,295
Net position - December 31 $1,500,608$5,000$1,013,120($790,087)$0$1,728,641$1,576,990
Totals
140
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2014
With Comparative Totals for Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from customers$373,602 $359,029
Cash paid to suppliers for goods and services(116,356)(81,956)
Cash payments to employees for services(109,825)(98,714)
Net cash flows provided by (used in) operating activities147,421178,359
Cash flows from noncapital financing activities:
Intergovernmental - 14,335
Transfers in - 400,000
Interfund payable (repaid to) advanced by other funds(16,000)(20,862)
Net cash flows provided by (used in) noncapital financing activities:(16,000)393,473
Cash flows from capital and related financing activities:
Acquisition of capital assets(155,330)(17,086)
Bonds issued - 859,155
Principal payments - bonds - (171,780)
Interest and fiscal charges(10,795)(27,776)
Net cash flows provided by (used in) capital and related financing activities(166,125)642,513
Cash flows from investing activities:
Investment income:
Interest and dividends 13,2005,502
Change in fair value 41,300(23,100)
Net cash flows provided by (used in) investing activities54,500 (17,598)
Net increase (decrease) in cash and cash equivalents19,796 1,196,747
Cash and cash equivalents - January 11,234,72337,976
Cash and cash equivalents - December 31$1,254,519 $1,234,723
Reconciliation of operating income to net cash flows from operating activities:
Operating income $64,325 $83,491
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 88,64683,795
Miscellaneous revenue 8991,707
Changes in assets and liabilities:
(Increase) decrease in accounts receivable7,218(9,160)
(Increase) decrease in due from other governmental units - (735)
Increase (decrease) in accounts payable(13,062)16,808
Increase (decrease) in accrued salaries and withholdings payable617689
Increase (decrease) in contracts payable - retained percentage(1,799)1,799
Increase (decrease) compensated absences payable577(35)
Total adjustments 83,096 94,868
Net cash flows provided by (used in) operating activities$147,421$178,359
Noncash capital and related financing activities:
Contribution of capital asset from intergovernmental revenue47,369$ -$
141
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142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 47
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals for December 31, 2013
OperatingDebt ServiceTotals
AccountAccount20142013
Assets:
Current assets:
Cash and cash equivalents$257,214$280,352$537,566$592,830
Cash and cash equivalents with fiscal agent - 399,250399,250399,254
Receivables:
Accounts (net of allowance for uncollectables 21 - 21 88
Interest - - - 200
Due from other governmental units 3,707 - 3,707 1,681
Inventory - at cost 2,876,805 - 2,876,8052,786,591
Total current assets 3,137,747 679,6023,817,3493,780,644
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 - 413,202 413,202
Total capital assets 6,334,978 06,334,9786,334,978
Less: accumulated depreciation (1,127,402) - (1,127,402)(975,502)
Net capital assets 5,207,576 05,207,5765,359,476
Total noncurrent assets 5,207,576 05,207,5765,359,476
Total assets 8,345,323 679,6029,024,9259,140,120
Liabilities:
Current liabilities:
Accounts payable 268,668 - 268,668 313,130
Accrued salaries and withholdings payable 42,922 - 42,922 31,634
Due to other governmental units 92,194 - 92,194 97,413
Accrued interest payable - 93,681 93,681 97,173
Compensated absences payable - current 3,642 - 3,642 5,447
Bonds payable - current - 180,000 180,000 170,000
Total current liabilities 407,426 273,681 681,107 714,797
Noncurrent liabilities:
Compensated absences payable - noncurrent 69,190 - 69,190 85,338
Bonds payable - noncurrent - 4,080,0004,080,0004,260,000
Total noncurrent liabilities 69,1904,080,0004,149,1904,345,338
Total liabilities 476,6164,353,6814,830,2975,060,135
Net position:
Net investments in capital assets 5,207,576(3,860,746)1,346,8301,328,730
Restricted for debt service - 186,667 186,667 179,175
Unrestricted 2,661,131 - 2,661,1312,572,080
Total net position $7,868,707($3,674,079)$4,194,628$4,079,985
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
TopHeights
Top ValuValu IILiquor
Operating revenues:
Charges for sales:
Liquor$1,535,319$1,135,795$513,572
Beer1,605,6761,401,243554,885
Wine610,908517,60464,205
Other171,888177,167127,109
Total operating revenues3,923,791 3,231,809 1,259,771
Operating expenses:
Cost of goods sold2,959,9232,427,608956,132
Operating expense651,561553,283180,238
Depreciation83,58764,7293,584
Total operating expenses3,695,0713,045,620 1,139,954
Net income from operations$228,720$186,189$119,817
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
Net position - December 31
Operating Accounts
144
Statement 48
TotalDebt
OperatingServiceIntrafundTotals
AccountsAccountEliminations20142013
$3,184,686$ - $ - $3,184,686$3,314,995
3,561,804 - - 3,561,8043,603,137
1,192,717 - - 1,192,7171,340,028
476,164 - - 476,164488,924
8,415,371 0 0 8,415,371 8,747,084
6,343,663 - - 6,343,6636,577,631
1,385,082 - - 1,385,0821,338,379
151,900 - - 151,900151,900
7,880,645 0 0 7,880,645 8,067,910
534,7260 0 534,726 679,174
400330 - 730900
1,600900 - 2,500(3,400)
- (207,738) - (207,738)(215,511)
(16,188) - - (16,188)(11,040)
(14,188)(206,508)0 (220,696)(229,051)
520,538(206,508)0 314,030 450,123
- 384,000(384,000) - -
(583,386) - 384,000(199,386)(132,334)
(583,386)384,0000(199,386)(132,334)
(62,848)177,4920114,644317,789
7,931,555(3,851,571) - 4,079,9843,762,196
$7,868,707($3,674,079)$0$4,194,628$4,079,985
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2014
With Comparative Amount for Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from customers $8,413,412$8,745,951
Cash paid to suppliers for goods and services (6,895,305)(7,264,578)
Cash payments to employees for services (996,188)(977,506)
Net cash flows provided by (used in) operating activities 521,919 503,867
Cash flows from noncapital financing activities
Transfers out (199,386)(132,334)
Net cash flows provided by (used in) noncapital financing activities (199,386)(132,334)
Cash flows from capital and related financing activities:
Acquisition of capital assets -
Principal payments - bonds (170,000)(165,000)
Interest and fiscal charges (211,235)(218,901)
Net cash flows provided by (used in) capital and related financing activities (381,235)(383,901)
Cash flows from investing activities:
Investment income
Interest and dividends 930 900
Change in fair value 2,500 (3,400)
Net cash flows provided by (used in) investing activities 3,430 (2,500)
Net increase (decrease) in cash and cash equivalents (55,272)(14,868)
Total cash and cash equivalents - January 1 992,084 1,006,952
Total cash and cash equivalents - December 31 936,812 992,084
(Less) cash and cash equivalents with fiscal agent - December 31 (399,250)(399,254)
Cash and cash equivalents - December 31 $537,562 $592,830
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2
For Year Ended December 31, 2014
With Comparative Amount for Year Ended December 31, 2013
20142013
Reconciliation of operating income to net cash flows from operating activities:
Operating income $534,726 $679,174
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 151,900 151,900
Miscellaneous expense (16,188)(11,040)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 67 73
(Increase) decrease in due from other governmental units (2,026)(1,206)
(Increase) decrease in inventory, at cost (90,214)(244,219)
Increase (decrease) in accounts payable (44,462)(87,212)
Increase (decrease) in accrued salaries and withholdings pay 11,288 8,270
Increase (decrease) in due to other governmental units (5,219)4,380
Increase (decrease) in compensated absences payable (17,953)3,747
Total adjustments (12,807)(175,307)
Net cash flows provided by (used in) operating activities $521,919 $503,867
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, 2014
Central
Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Assets:
Current assets:
Cash and cash equivalents$573,041$702,535$1,104,268$967,301$3,347,145
Interest receivable1,0001,2001,900 - 4,100
Prepayments - - 61,776 - 61,776
Inventory - at cost68,562 - - - 68,562
Total current assets642,603703,7351,167,944967,3013,481,583
Noncurrent assets:
Capital assets:
Land15,779 - - - 15,779
Buildings1,978,957 - - - 1,978,957
Equipment234,265237,192 - - 471,457
Construction in progress - - - - -
Total capital assets2,229,001237,192002,466,193
Less: accumulated depreciation(935,348)(190,920) - - (1,126,268)
Net capital assets1,293,65346,272001,339,925
Total noncurrent assets1,293,65346,272001,339,925
Total assets1,936,256 750,007 1,167,944 967,301 4,821,508
Liabilities:
Current liabilities:
Accounts payable7,4491,286 - - 8,735
Accrued salaries and withholdings payable6,0737,966 - - 14,039
Unearned revenue7,904 - - - 7,904
Compensated absences payable - current2,0061,163 - 48,36551,534
Total current liabilities23,432 10,415 0 48,365 82,212
Noncurrent liabilities:
Compensated absences payable - noncurrent38,11822,096 - 918,936979,150
Total liabilities61,550 32,511 0 967,301 1,061,362
Net position:
Net investments in capital assets1,293,65346,272 - - 1,339,925
Unrestricted581,053671,2241,167,944 - 2,420,221
Total net position$1,874,706$717,496$1,167,944$0$3,760,146
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, 2014
Central Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments$178,629$ - $562,225$ - $740,854
Use of space297,629 - - - 297,629
Recovery of damages - - 11,734 - 11,734
Charges for sales:
Sales of motor fuel165,468 - - - 165,468
Total operating revenues641,726 0 573,959 0 1,215,685
Operating expenses:
Cost of services and space545,775283,495568,236 - 1,397,506
Depreciation69,54718,655 - - 88,202
Total operating expenses615,322 302,150 568,236 0 1,485,708
Net income (loss) from operations26,404(302,150)5,7230(270,023)
Nonoperating revenues (expenses):
Investment income
Interest and dividends7,1008,70013,400 - 29,200
Change in fair value20,50025,10039,200 - 84,800
Intergovernmental - - - - -
Total nonoperating revenues
(expenses)27,600 33,800 52,600 0 114,000
Net income (loss) before transfers54,004 (268,350)58,323 0 (156,023)
Transfers in - 330,000 - - 330,000
Transfers out(35,000) - - - (35,000)
Total transfers and
capital contributions(35,000)330,000 0 0 295,000
Change in net position19,004 61,650 58,323 0 138,977
Net position - January 11,855,702655,8461,109,621 - 3,621,169
Net position - December 31$1,874,706 $717,496 $1,167,944 $0 $3,760,146
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2014
Central Garage
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from interfund goods and services provided$641,727$ - $562,225$ - $1,203,952
Cash received for damages - - 11,734 - 11,734
Cash paid to suppliers for goods and services(340,847)(37,063)(578,906) - (956,816)
Cash payments to employees for services(218,566)(249,518) - - (468,084)
Net cash flows provided by (used in) operating activities82,314(286,581)(4,947)0(209,214)
Cash flows from noncapital financing activities:
Cash received other funds - - - 29,61229,612
Transfers in - 330,000 - - 330,000
Transfers out(35,000) - - - (35,000)
Net cash flows provided by (used in)
noncapital financing activities(35,000)330,000 0 29,612 324,612
Cash flows from capital and related financing activities:
Acquisition of capital assets9,873(41,891) - - (32,018)
Net cash flows provided by (used in)
capital and related financing activities9,873 (41,891)0 0 (32,018)
Cash flows from investing activities:
Investment income:
Interest and dividends7,4009,20014,100 - 30,700
Change in fair value20,50025,10039,200 - 84,800
Net cash flows provided by (used in) investing activities27,90034,30053,3000115,500
Net increase (decrease) in cash and cash equivalents85,087 35,828 48,353 29,612 198,880
Cash and cash equivalents - January 1487,954666,7071,055,915937,6893,148,265
Cash and cash equivalents - December 31$573,041 $702,535 $1,104,268 $967,301 $3,347,145
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss)$26,404($302,150)$5,723$ - ($270,023)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense69,54718,655 - - 88,202
Changes in assets and liabilities:
(Increase) decrease in prepayments - - (7,725) - (7,725)
(Increase) decrease in inventory, at cost(5,471) - - - (5,471)
Increase (decrease) in accounts payable(10,961)(5,037)(2,945) - (18,943)
Increase (decrease) in accrued
salaries and withholdings payable8941,641 - - 2,535
Increase (decrease) in deferred revenue231 - - - 231
Increase (decrease) in compensated absences payable1,670310 - - 1,980
Total adjustments55,910 15,569 (10,670)0 60,809
Net cash flows provided by (used in) operating activities$82,314($286,581)($4,947)$0($209,214)
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 53
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals For December 31, 2013
Capital
Equipment
OperatingReplacementTotals
AccountAccount20142013
Assets:
Current assets:
Cash and cash equivalents$527,805$45,236$573,041$487,954
Interest receivable9001001,0001,300
Inventory - at cost68,562 - 68,56263,091
Total current assets597,26745,336642,603552,345
Noncurrent assets:
Capital assets:
Land15,779 - 15,77915,779
Buildings1,978,957 - 1,978,9571,978,958
Equipment234,265 - 234,265222,295
Construction in progress - - - 21,841
Total capital assets2,229,00102,229,0012,238,873
Less: Accumulated depreciation(935,348) - (935,348)(865,800)
Net capital assets1,293,65301,293,6531,373,073
Total noncurrent assets1,293,65301,293,6531,373,073
Total assets1,890,92045,3361,936,2561,925,418
Liabilities:
Current liabilities:
Accounts payable7,449 - 7,44918,410
Accrued salaries and withholdings payable6,073 - 6,0735,179
Unearned revenue7,904 - 7,9047,673
Compensated absences payable - current2,006 - 2,0062,307
Total current liabilities23,432 0 23,432 33,569
Noncurrent liabilities:
Compensated absences payable - noncurrent38,118 - 38,11836,147
Total liabilities61,550 0 61,550 69,716
Net position:
Net investments in capital assets1,293,653 - 1,293,6531,373,073
Unrestricted535,71745,336581,053482,629
Total net position$1,829,370$45,336$1,874,706$1,855,702
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
Capital
Equipment
OperatingReplacementIntrafundTotals
AccountAccountEliminations20142013
Operating revenues:
Charges for services:
Services to departments$178,629$ - $ - $178,629$173,335
Use of space297,629 - - 297,629296,064
Charges for sales:
Sales of motor fuel165,468 - - 165,468176,961
Total operating revenues641,726 0 0 641,726646,360
Operating expenses:
Cost of services and space545,775 - - 545,775548,974
Depreciation69,547 - - 69,54768,080
Total operating expenses615,322 0 0 615,322617,054
Net income from operations26,4040 0 26,40429,306
Nonoperating revenues:
Investment income:
Interest and dividends6,500600 - 7,1006,600
Change in fair value18,9001,600 - 20,500(24,400)
Intergovernmental0 - - - 6,599
Total nonoperating revenues25,4002,200027,600(11,201)
Net income before transfers51,8042,200054,004 18,105
Transfers in - 4,000(4,000) - -
Transfers out(39,000) - 4,000(35,000)(35,000)
Total transfers(39,000)4,000 0 (35,000)(35,000)
Change in net position12,804 6,200 0 19,004 (16,895)
Total net position - January 11,816,56639,136 - 1,855,7021,872,597
Total net position - December 31$1,829,370 $45,336 $0 $1,874,706 $1,855,702
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CENTRAL GARAGE FUND Statement 55
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from interfund goods & services provided$641,727$646,360
Cash paid to suppliers for goods and services(340,847)(357,483)
Cash payments to employees for services(218,566)(210,618)
Net cash flows provided by (used in) operating activities82,314 78,259
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:(35,000)(28,401)
Cash flows from capital and related financing activities:
Acquisition of capital assets9,873(133,349)
Cash flows from investing activities:
Investment income:
Interest and dividends7,4006,999
Change in fair value20,500(24,400)
Net cash flows provided by (used in) investing activities27,900(17,401)
Net increase (decrease) in cash and cash equivalents85,087 (100,892)
Cash and cash equivalents - January 1487,954588,846
Cash and cash equivalents - December 31$573,041 $487,954
Reconciliation of operating income to net cash flows from operating activities:
Operating income $26,404$29,306
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense69,54768,080
Changes in assets and liabilities:
(Increase) decrease in inventory, at cost(5,471)5,587
Increase (decrease) in accounts payable(10,961)(26,825)
Increase (decrease) in accrued salaries and withholdings payable894820
Increase (decrease) in compensated absences payable1,6701,068
Increase (decrease) in deferred revenue231223
Total adjustments55,91048,953
Net cash flows provided by (used in) operating activities$82,314$78,259
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 56
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals For December 31, 2013
Capital
Equipment
Operating Replacement Totals
AccountAccount 2014 2013
Assets:
Current assets:
Cash and cash equivalents $246,857$455,678$702,535$666,707
Interest receivable 500 700 1,200 1,700
Total current assets 247,357456,378703,735668,407
Noncurrent assets:
Capital assets:
Equipment 237,192 - 237,192195,300
Less: accumulated depreciation (190,920) - (190,920)(172,264)
Net capital assets 46,272 0 46,272 23,036
Total noncurrent assets 46,272 0 46,272 23,036
Total assets 293,629456,378750,007691,443
Liabilities:
Current liabilities:
Accounts payable 1,286 - 1,286 6,323
Accrued salaries and withholdings payable 7,966 - 7,966 6,325
Compensated absences payable - current 1,163 - 1,163 1,377
Total current liabilities 10,415 0 10,415 14,025
Noncurrent liabilities:
Compensated absences payable - noncurrent 22,096 - 22,096 21,572
Total liabilities 32,511 0 32,511 35,597
Net position:
Net investments in capital assets 46,272 - 46,272 23,036
Unrestricted 214,846456,378671,224632,810
Total net position $261,118 $456,378 $717,496 $655,846
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
Capital
Equipment
OperatingReplacementTotals
AccountAccount20142013
Operating revenues$ - $ - $ - $ -
Operating expenses:
Cost of services283,4950283,495327,129
Depreciation18,655 - 18,65519,593
Total operating expenses302,1500302,150346,722
Net income (loss) from operations(302,150)0(302,150)(346,722)
Nonoperating revenues:
Investment income
Interest and dividends3,4005,3008,7008,500
Change in fair value9,70015,40025,100(31,500)
Total nonoperating revenues13,10020,70033,800(23,000)
Net income (loss) before transfers(289,050)20,700 (268,350)(369,722)
Transfers in330,000 - 330,000325,000
Change in net position40,950 20,700 61,650 (44,722)
Net position - January 1220,168435,678655,846700,568
Net position - December 31$261,118 $456,378 $717,496 $655,846
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash paid to suppliers for goods and services ($37,063)($75,234)
Cash payments to employees for services (249,518)(239,182)
Net cash flows provided by (used in) operating activities (286,581)(314,416)
Cash flows from noncapital financing activities:
Transfers in 330,000 325,000
Net cash flows from noncapital financing activites 330,000 325,000
Cash flows from capital and related financing activities:
Acquisition of capital assets (41,891) -
Cash flows from investing activities:
Investment income:
Interest and dividends 9,200 8,800
Change in fair value 25,100 (31,500)
Net cash flows provided by (used in) investing activities 34,300 (22,700)
Net increase in cash and cash equivalents 35,828 (12,116)
Cash and cash equivalents - January 1 666,707 678,823
Cash and cash equivalents - December 31 $702,535 $666,707
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($302,150)($346,722)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 18,655 19,593
Changes in assets and liabilities:
Increase (decrease) in accounts payable (5,037)4,493
Increase (decrease) in accrued salaries and withholdings payable 1,641 1,036
Increase (decrease) in compensated absences payable 310 7,184
Total adjustments 15,569 32,306
Net cash flows provided by (used in) operating activities ($286,581)($314,416)
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 59
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals For December 31, 2013
20142013
Assets:
Current assets:
Cash and cash equivalents$1,104,268$1,055,915
Interest receivable 1,9002,600
Prepayments 61,77654,051
Total assets1,167,9441,112,566
Liabilities:
Current liabilities:
Accounts payable - 2,945
Total liabilities 02,945
Net position:
Unrestricted 1,167,9441,109,621
Total net position$1,167,944 $1,109,621
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Operating revenues:
Insurance allocation $562,225 $498,710
Recovery of damages 11,734 28,361
Total operating revenues 573,959 527,071
Operating expenses:
Cost of services:
Premiums 552,791 446,194
Claims 15,445 28,396
Total operating expenses 568,236 474,590
Net income from operations 5,723 52,481
Nonoperating revenues:
Investment income
Interest and dividends 13,400 12,900
Change in fair value 39,200 (48,000)
Total nonoperating revenues 52,600 (35,100)
Net income 58,323 17,381
Change in net position 58,323 17,381
Net position - January 1 1,109,621 1,092,240
Net position - December 31 $1,167,944 $1,109,621
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 61
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from interfund services provided$562,225$498,710
Cash received for damages11,73428,361
Cash paid to suppliers for goods and services(578,906)(474,795)
Net cash flows provided by (used in) operating activities(4,947)52,276
Cash flows from investing activities:
Investment income
Interest and dividends14,10013,200
Change in fair value39,200(48,000)
Net cash flows provided by (used in) investing activities53,300(34,800)
Net increase in cash and cash equivalents48,353 17,476
Cash and cash equivalents - January 11,055,9151,038,439
Cash and cash equivalents - December 31$1,104,268 $1,055,915
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$5,723$52,481
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - 2,819
(Increase) decrease in prepayments(7,725)(5,969)
Increase (decrease) in accounts payable(2,945)2,945
Total adjustments(10,670)(205)
Net cash flows provided by (used in) operating activities($4,947)$52,276
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 62
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2014
With Comparative Totals For December 31, 2013
20142013
Assets:
Current assets:
Cash and cash equivalents $967,301 $937,689
Total assets 967,301 937,689
Liabilities:
Current liabilities:
Compensated absences payable - current 48,365 56,261
Noncurrent liabilities:
Compensated absences payable - noncurrent 918,936 881,428
Total liabilities 967,301 937,689
Net position:
Unrestricted - -
Total net position $0 $0
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, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Operating revenues $0$1,413
Net income (loss) from operations0 1,413
Change in net position 0 1,413
Net position - January 1 - (1,413)
Net position - December 31 $0 $0
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 64
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2014
With Comparative Totals For The Year Ended December 31, 2013
20142013
Cash flows from operating activities:
Cash received from interfund services provided$0$1,413
Net cash flows from operating activities01,413
Cash flows from noncapital financing activities:
Cash received from other funds$29,612$25,551
Net cash flows provided by noncapital financing activities29,61225,551
Net increase in cash and cash equivalents29,61225,551
Cash and cash equivalents - January 1937,689912,138
Cash and cash equivalents - December 31$967,301 $937,689
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$ - $1,413
Net cash flows provided by (used in) operating activities$0$1,413
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, 2014
BalanceBalance
January 1,December 31,
2014AdditionsDeletions2014
Permit Surcharge Fund
Assets:
Cash and investments$1,524$24,144($24,222)$1,446
Total assets$1,524$24,144($24,222)$1,446
Liabilities:
Due to other governmental units$1,524$25,596($25,674)$1,446
Total liabilities$1,524$25,596($25,674)$1,446
Tri-City GIS Fund
Assets:
Cash and investments$8,387$85,419($84,034)$9,772
Due from other governmental units - 69,279(67,545)1,734
Total assets$8,387$154,698($151,579)$11,506
Liabilities:
Accounts payable$5,782$84,034($80,205)$9,611
Due to other governmental units2,60566,674(67,384)1,895
Total liabilities$8,387$150,708($147,589)$11,506
Total
Assets:
Cash and investments$9,911$109,563($108,256)$11,218
Due from other governmental units - 69,279(67,545)1,734
Total assets$9,911$178,842($175,801)$12,952
Liabilities:
Accounts payable$5,782$84,034($80,205)$9,611
Due to other governmental units4,12992,270(93,058)3,341
Total liabilities$9,911$176,304($173,263)$12,952
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)
200520062007
Governmental activities:
Invested in capital assets, net of related debt$16,727,724$18,043,277$18,859,030
Restricted 2,302,0562,224,3842,228,454
Unrestricted18,650,98123,028,97422,985,523
Total governmental activities net position$37,680,761$43,296,635$44,073,007
Business-type activities:
Invested in capital assets, net of related debt$6,732,499$5,759,805$6,039,739
Restricted 375,652455,227775,036
Unrestricted 6,506,2017,299,5746,478,383
Total business-type activities net position$13,614,352$13,514,606$13,293,158
Primary government:
Invested in capital assets, net of related debt$23,460,223$23,803,082$24,898,769
Restricted 2,677,7082,679,6113,003,490
Unrestricted25,157,18230,328,54829,463,906
Total primary government net position$51,295,113$56,811,241$57,366,165
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
2008200920102011201220132014
$23,497,922$24,163,911$26,279,178$28,095,261$27,666,461$27,358,490$26,049,057
2,316,9592,458,7432,034,0303,213,4552,624,4663,347,3693,752,839
21,011,46522,423,35123,142,53421,119,17921,241,59520,900,86123,157,208
$46,826,346$49,046,005$51,455,742$52,427,895$51,532,522$51,606,720$52,959,104
$7,142,278$7,459,474$8,044,184$9,331,167$9,819,666$10,365,407$10,729,457
745,601648,435438,275381,465161,503643,320543,822
5,855,4956,014,1406,725,3835,918,1476,680,6096,690,1117,269,897
$13,743,374$14,122,049$15,207,842$15,630,779$16,661,778$17,698,838$18,543,176
$30,640,200$31,623,385$34,323,362$37,426,428$37,486,127$37,723,897$36,778,514
3,062,5603,107,1782,472,3053,594,9202,785,9693,990,689$4,296,661
26,866,96028,437,49129,867,91727,037,32627,922,20427,590,972$30,427,105
$60,569,720$63,168,054$66,663,584$68,058,674$68,194,300$69,305,558$71,502,280
Fiscal Year
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA `
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200520062007
Expenses
Governmental activities:
General government$1,681,229$1,689,675$1,732,111
Public safety4,052,9053,992,9304,380,363
Public works2,391,7262,353,0322,506,913
Culture and recreation2,017,8162,135,6332,313,750
Community development5,360,4422,579,0845,918,257
Interest on long-term debt288,532118,760496,688
Total governmental activities expenses15,792,65012,869,11417,348,082
Business-type activities:
Water 1,717,4452,026,6032,113,121
Sewer 1,333,4201,393,6791,675,738
Refuse 1,147,3131,147,8791,170,707
Storm sewer162,915184,764204,221
Liquor 6,544,1756,377,8056,539,357
Total business-type activities expenses10,905,26811,130,73011,703,144
Total primary government expenses$26,697,918$23,999,844$29,051,226
Program revenues
Governmental activities:
Charges for services:
General government$228,740$171,146$177,378
Public safety423,450528,752670,017
Public works81,607267,960130,351
Culture and recreation250,380263,565297,341
Community development2,748,5421,461,4971,504,679
Operating grants and contributions:
General government792,769 -
Public safety557,983355,356389,325
Public works178,311161,176154,309
Culture and recreation76,40579,37147,784
Community development144,121160,017159,624
Capital grants and contributions:
General government - - -
Public safety599,91752,463103,974
Public works46,0523,896,8621,448,180
Culture and recreation1,702,543141,73871,516
Community development - 682,8721,311,525
Total governmental activities program revenues7,038,1308,225,5446,466,003
Fiscal Year
172
Table 2
Page 1 of 2
2008200920102011201220132014
$1,835,453$1,761,334$2,013,750$2,039,680$1,977,594$1,976,207$2,104,025
4,599,6694,591,9775,473,2245,549,6785,708,0095,683,7695,801,747
2,906,9502,794,1892,777,9662,654,0473,200,5722,843,1023,052,844
2,283,8812,182,8562,479,5192,576,4092,500,7192,553,7602,565,755
4,476,4752,385,4052,295,5741,630,3502,157,9662,010,0401,943,576
721,006961,392959,320909,858845,879808,933761,967
16,823,43414,677,15315,999,35315,360,02216,390,73915,875,81116,229,914
2,149,9761,927,8112,000,1012,370,0762,311,8582,371,4142,336,475
1,571,4871,737,1341,478,5181,710,3811,464,2691,538,9701,789,260
1,185,2981,290,5281,426,4861,561,6591,601,6481,628,9661,695,997
216,362376,884272,355298,577329,998307,876315,809
7,470,3237,701,9617,910,9518,155,8888,371,6108,341,3098,148,788
12,593,44613,034,31813,088,41114,096,58114,079,38314,188,53514,286,329
$29,416,880$27,711,471$29,087,764$29,456,603$30,470,122$30,064,346$30,516,243
$173,485$169,850$192,005$189,641$204,391$385,728$194,201
616,107637,653715,205697,656736,927706,168752,694
67,22634,14944,21148,303139,30539,14189,392
262,562256,969269,825159,829137,978163,931234,494
1,562,3451,019,1911,114,848962,276961,420976,030987,722
2,5601,505 - - - - -
433,732434,402559,482563,914556,387511,527404,486
154,049161,401166,468176,578189,039233,748557,112
239,865102,51793,47476,86457,33756,06931,521
185,506211,400241,919112,89523,010 - -
- - 194,84238,399 - - -
57,70019,52016,02611,303 - - -
1,596,3481,683,0242,848,1791,314,547797,921855,227183,706
42,5881,50015,724 - - - -
2,974,449199,505541,826175,467204,3491,026,706422,773
8,368,5224,932,5867,014,0344,527,6724,008,0644,954,2753,858,101
Fiscal Year
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200520062007
Business-type activities:
Charges for services:
Water $1,887,990$2,141,648$2,273,980
Sewer 1,145,8101,374,2171,419,252
Refuse 1,256,1801,263,2671,303,472
Storm sewer274,907270,467290,419
Liquor 6,714,5756,546,9796,722,622
Operating grants and contributions:
Water - - -
Sewer - - -
Refuse 46,17047,75536,060
Storm sewer - - -
Capital grants and contributions:
Water - 22,822 -
Sewer - - -
Refuse - - -
Storm sewer - - -
Total business-type activities program revenues11,325,63211,667,15512,045,805
Total primary government program revenues$18,363,762$19,892,699$18,511,808
Net (expense) revenue:
Governmental activities($8,754,520)($4,643,570)($10,882,079)
Business-type activities420,364536,425342,661
Total primary government net (expense) revenue(8,334,156)(4,107,145)(10,539,418)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes5,662,3685,953,7226,321,467
Tax increment collections1,088,2671,086,2981,183,062
Unrestricted grants and contributions1,768,2161,679,3841,844,516
Investment earnings471,142706,2311,379,726
Miscellaneous18,98015,93044,000
Transfers 445,249957,879456,537
Total governmental activities9,454,22210,399,44411,229,308
Business-type activities:
Investment earnings118,413181,708321,571
Transfers (445,249)(957,879)(456,537)
Total business-type activities(326,836)(776,171)(134,966)
Total primary government$9,127,386$9,623,273$11,094,342
Change in net position:
Governmental activities$699,702$5,755,874$347,229
Business-type activities93,528(239,746)207,695
Total primary government$793,230$5,516,128$554,924
174
Table 2
Page 2 of 2
2008200920102011201220132014
$2,414,316$2,471,257$2,503,506$2,530,803$2,777,383$3,020,174$2,805,072
1,440,1651,465,4961,594,3221,523,8521,581,5161,618,7861,627,078
1,341,0141,383,9791,542,3121,682,1781,761,8601,826,2261,887,038
314,238370,590345,086350,618353,343368,925366,384
7,490,9427,962,8848,158,2598,494,9628,804,2338,747,0848,415,371
- - - - - 1,971 -
1,718 - - - - - -
50,57250,10536,65366,16362,47168,56591,421
- - - - - 14,335 -
- - - - - - -
54,774 - - - - - -
- - - - 50,000 - -
- - - - - 47,369
13,107,73913,704,31114,180,13814,648,57615,390,80615,666,06615,239,733
$21,476,261$18,636,897$21,194,172$19,176,248$19,398,870$20,620,341$19,097,834
($8,454,912)($9,744,567)($8,985,319)($10,832,350)($12,382,675)($10,921,536)($12,371,813)
514,293669,9931,091,727551,9951,311,4231,477,531953,404
(7,940,619)(9,074,574)(7,893,592)(10,280,355)(11,071,252)(9,444,005)(11,418,409)
6,762,1298,046,3188,825,5029,069,0929,363,5989,827,37810,310,867
1,557,8911,244,684812,965558,861553,050532,524463,837
1,516,4121,731,1851,176,9341,278,1951,003,5521,000,5131,496,804
1,050,827475,345487,612598,880295,950(664,694)1,091,263
40,87782,704 - 34,4857,33811,842 -
280,115383,99092,044264,990263,814288,171361,426
11,208,25111,964,22611,395,05711,804,50311,487,30210,995,73413,724,197
216,03892,67286,110135,93263,321(152,300)252,360
(280,115)(383,990)(92,044)(264,990)(263,814)(288,171)(361,426)
(64,077)(291,318)(5,934)(129,058)(200,493)(440,471)(109,066)
$11,144,174$11,672,908$11,389,123$11,675,445$11,286,809$10,555,263$13,615,131
$2,753,339$2,219,659$2,409,738$972,153($895,373)$74,198$1,352,384
450,216378,6751,085,793422,9371,110,9301,037,060844,338
$3,203,555$2,598,334$3,495,531$1,395,090$215,557$1,111,258$2,196,722
Fiscal Year
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
200520062007
General fund:
Reserved $10,484$35,323$35,710
Unreserved 3,339,6443,560,5253,943,436
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total general fund$3,350,128$3,595,848$3,979,146
All other governmental funds:
Reserved $2,187,884$2,668,322$2,382,354
Unreserved, reported in:
Special revenue funds(612,434)(506,084)411,090
Debt service funds621,250809,0621,745,447
Capital projects funds12,784,74415,034,96815,918,048
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total all other governmental funds$14,981,444$18,006,268$20,456,939
Fiscal Year
176
Table 3
2008200920102011201220132014
$12,159$71,898$77,204$ - $ - $ - $ -
3,743,7984,724,2535,265,035 - - - -
- - - 80,76787,34192,63894,892
- - - - - - -
- - - 132,59574,59450,23730,548
- - - - - - -
- - - 5,655,6935,914,9746,254,4027,248,380
$3,755,957$4,796,151$5,342,239$5,869,055$6,076,909$6,397,277$7,373,820
$968,602$1,643,915$1,550,071$ - $ - $ - $ -
1,868,3402,332,6103,190,618 - - - -
3,242,4713,177,5863,713,774 - - - -
20,233,69013,173,07411,642,407 - - - -
- - - 2,353,1642,763,8521,750,1141,522,537
- - - 3,440,6494,186,0813,879,7064,368,851
- - - 12,774,44010,988,36812,229,48113,593,609
- - - - - - -
- - - (1,041)(2,782)(39,344)(75,389)
$26,313,103$20,327,185$20,096,870$18,567,212$17,935,519$17,819,957$19,409,608
Fiscal Year
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200520062007
Revenues:
Taxes$6,702,610$6,977,604$7,444,199
Special assessments520,0311,011,5531,137,576
Licenses and permits382,339597,557444,833
Intergovernmental 4,878,4874,228,3084,229,414
Charges for services3,197,3601,887,3141,995,859
Fines and forfeitures127,555129,400160,383
Investment earnings432,959648,7441,271,216
Other revenues90,956251,414170,344
Total revenues16,332,297 15,731,894 16,853,824
Expenditures:
Current:
General government1,575,8631,577,4841,616,374
Public safety3,954,0193,887,8844,122,411
Public works1,558,9871,523,1701,640,713
Culture and recreation1,977,7982,074,8352,238,793
Community development4,511,3382,256,1223,077,310
Capital outlay:
General government11,0224,512 -
Public safety95,12582,986254,728
Public works1,912,7384,202,6651,303,297
Culture and recreation62,700117,909274,896
Community development1,436,724266,144306,332
Debt service:
Principal retirement1,449,035782,273792,273
Interest and fiscal charges2,478,205119,544219,065
Issuance costs - 25,114148,972
Developer incentives252,176142,4512,584,854
Total expenditures21,275,730 17,063,093 18,580,018
Revenues over (under) expenditures(4,943,433)(1,331,199)(1,726,194)
Fiscal Year
178
Table 4
Page 1 of 2
2008200920102011201220132014
$8,263,763$9,218,038$9,631,635$9,683,433$9,948,228$10,416,523$10,774,987
2,505,523879,0921,020,334729,327775,714667,719458,670
423,465435,618479,148378,357396,226412,208415,032
3,734,8263,777,3554,936,4432,820,4192,314,1952,719,4002,766,383
1,665,6041,513,6671,650,7721,652,6551,663,7821,710,7671,702,900
142,283139,955188,693170,089161,882148,023140,571
984,846456,145469,312562,180275,750(611,794)1,011,063
296,815102,901273,44670,17363,674104,57773,815
18,017,125 16,522,771 18,649,783 16,066,633 15,599,451 15,567,423 17,343,421
1,706,2441,646,9741,926,9821,880,2571,813,4331,791,3791,939,689
4,345,7164,418,4364,968,4335,037,5485,250,8815,171,3225,270,798
1,955,2501,736,9991,731,7001,509,5272,011,5071,644,0751,916,874
2,202,6802,003,6352,194,8532,306,6932,184,2142,233,4462,247,452
4,077,5762,115,6281,351,3681,321,4311,434,3291,205,2731,544,419
5,45345,708 - 144,029209,17613,86821,642
3,499,7138,997,400237,27295,281158,44870,960103,707
1,084,959951,2402,925,1741,882,787557,820896,22379,225
3,269,9862,256,958194,380140,86718,10739,768100,248
287,620139,1181,202,99840,549636,294566,901413,179
1,029,836783,974765,7361,659,022972,0001,559,730662,000
384,293835,167981,281935,405861,139833,890770,535
155,39756,189 - - - - -
71,341125,857141,005181,638116,072163,97255,123
24,076,064 26,113,283 18,621,182 17,135,034 16,223,420 16,190,807 15,124,891
(6,058,939)(9,590,512)28,601 (1,068,401)(623,969)(623,384)2,218,530
Fiscal Year
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200520062007
Other financing sources (uses):
Bonds issued$ - $2,759,550$3,890,000
Bond premium (discount) - 26,303(22,108)
Transfers in553,0701,807,877570,374
Transfers out(80,321)(70,000)(70,000)
Sale of capital assets628,65478,013191,897
Total other financing sources (uses)1,101,403 4,601,743 4,560,163
Net change in fund balance($3,842,030)$3,270,544$2,833,969
Expenditures capitalized for governmental
activities reporting purposes3,518,3094,592,7871,896,363
Debt service as a percentage
of noncapital expenditures (A) (B)22.1%7.2%6.1%
Debt service as a percentage
of total expenditures (A) (B)18.5%5.3%5.4%
(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
2008200920102011201220132014
$10,975,000$4,190,000$ - $ - $ - $563,021$ -
- - - - - - -
377,615458,231407,272411,736298,814326,740405,728
(88,941)(99,224)(120,100)(302,881)(110,000)(113,569)(124,302)
428,24095,781 - 40,99911,31551,99766,236
11,691,914 4,644,788 287,172 149,854 200,129 828,189 347,662
$5,632,975($4,945,724)$315,773($918,547)($423,840)$204,805$2,566,192
7,909,56112,364,5113,637,5592,270,210943,602952,108417,503
8.7%11.8%11.7%17.5%12.0%15.7%9.7%
5.9%6.2%9.4%15.1%11.3%14.8%9.5%
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 Rate Valueof EMV
2005$10,170,041$1,874,629($1,152,643)$10,892,027($417,605)$2,275,591$12,750,01347.859%$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%
20148,194,7091,012,690(443,838)8,763,561(568,852)4,334,66212,529,37178.177%954,475,0001.313%
(A)After 2011, taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion.
(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
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%
201478.177%24.824%40.365%12.297%155.663%
(A)These property tax rates are stated as a percentage of tax capacity value. Refer to Table 5 for tax capacity value.
Tax capacity values after 2011 are reduced the market value homestead exclusion, which excludes a portion of homesteaded value
from taxation. Consequently, post-2011 tax 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.
Source: Anoka County Auditor's Tax Certificate
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$147,93811.61%$179,49811.56%
Bre Non-Core 2 Owner B, LLC115,066 2 1.25%N/AN/AN/A
Crestview Corporation92,73431.01%66,79590.58%
Hart Lake Apartments LLC89,78840.98%N/AN/AN/A
Stadium Village Properties LLC87,57650.95%N/AN/AN/A
Columbia Park Properties80,76460.88%87,29260.76%
Columbia Heights Center LLC70,61670.77%67,25080.58%
Lynde Investment Co MN Partnership65,25280.71%69,06770.60%
Xcel Energy64,49490.70%55,712100.48%
Burlington Northern64,336100.70%N/AN/AN/A
New Heights DevelopmentN/AN/AN/A101,0003N/A
Venture BankN/AN/AN/A89,90050.78%
Consolidated Realty of MplsN/AN/AN/A100,57340.87%
Equity Partners LLCN/AN/AN/AN/AN/AN/A
Bradley Operating LPN/AN/AN/A133,63821.16%
Centro Bradley SPE 5 LLCN/AN/AN/AN/AN/AN/A
Total$878,5649.54%$950,7257.39%
Total All Property $9,207,399$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) 2014 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion (first effective 2012.)
Source: Anoka County Auditor's Tax Certificate.
20052014
185
CITY OFCOLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
CountyState Market
FiscalGrossAdjustmentsValue HomesteadAdjusted
YearTax Levy (A)to Levy (B)Credit (A) Tax Levy
2005 $6,102,537 $152 ($568,479)$5,534,210
2006 6,347,537 (160)(517,322)5,830,055
2007 6,500,613 (189)(471,660)6,028,764
2008 7,045,370 (74)(451,019)6,594,277
2009 7,702,363 (161)(447,755)7,254,447
2010 9,075,425 (302)(535,625)8,539,498
2011 9,426,760 (141)(608,241)8,818,378
2012 9,136,706 (54) - 9,136,652
2013 9,536,888 (182) - 9,536,706
2014 9,911,706 166 - 9,911,872
(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.
(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 Adjusted Subsequent% of Adjusted
AmountTax LevyYearsAmountTax Levy
$5,412,17897.79%$86,085$5,498,26399.35%
5,672,90997.30%129,0515,801,96099.52%
5,842,54096.91%158,3756,000,91599.54%
6,400,60497.06%158,2086,558,81299.46%
7,021,60596.79%169,8237,191,42899.13%
8,279,06596.95%240,1048,519,16999.76%
8,578,78497.28%212,6238,791,40799.69%
8,932,56497.77%152,5139,085,07799.44%
9,379,87398.36%17,4249,397,29798.54%
Not AvailableNot AvailableN/A Not AvailableNot Available
Collected Within The Fiscal Year For Which
Levied
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneralGeneral
ObligationObligationObligation
Bonds RepaidBondsBonds WithTax IncrementTotal
FiscalOnly WithWith PledgedPledged SpecialRevenueGovernmental
YearGeneral TaxesTax IncrementAssessmentsBondsActivities
2005$ - $1,985,000$1,604,292$ - $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
201113,480,000580,0002,740,7302,790,00019,590,730
201213,090,000580,0002,211,5302,737,00018,618,530
201312,685,000525,0001,733,0212,679,00017,622,021
201412,260,000470,0001,613,0212,617,00016,960,021
(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)
$2,220,708$ - $2,220,708$5,810,0001.3%$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
1,123,2704,595,0005,718,27024,336,8004.8%1,240
2,436,9794,430,0006,866,97924,489,0005.1%1,245
2,401,9794,260,0006,661,97923,622,0004.7%1,201
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)
2005$3,589,292$621,250$2,968,0420.25%
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%
201414,281,0211,134,22713,146,7941.38%
(A) Based on population and income data in Table 14. Certain information from prior years' presentations
have been restated in this table to conform to the current presentation.
(B) Based on the estimated market value of property in Table 5.
The estimated market value of property bears a stong relationship to the debt capacity of the City.
It should be noted however, that in the State of Minnesota, property tax revenue is dependent
on the tax capacity value of property. Tax capacity value is derived from estimated market value by a
set of class rates and other adjustments as determined by the State legislature. The historical relationship
between estimated market value and tax capacity value for property in the City is shown in Table 5.
190
Table 10
Business-typeSubtotal of
GeneralLess:Business-type
Obligation BondsBusiness-typeNet GeneralPercentageTotal
With PledgedRestricted forObligationof UtilityNet GeneralPer
Utility RevenuesRepaymentBonded DebtRevenueBonded DebtCapita (A)
$2,220,708$375,652$1,845,05640.6%$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
2,436,979259,3662,177,61333.7%$16,119,803820
2,401,979543,8221,858,15728.8%$15,004,951763
191
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2014
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental Unit (A)OutstandingApplicable (B)Debt
Debt repaid with property taxes:
Anoka County$106,810,0004.6154%$4,929,698
Independent School District 1315,705,000 70.9996%11,150,488
Metropolitan Council 155,020,000 41.7800%647,637
Subtotal - overlapping debt 16,727,823
City direct debt - governmental activities 20,135,000
Total direct and overlapping debt $36,862,823
(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 2014
Assessor's Estimated Market Value (A)$954,475,000
Debt limitation percentage (A)3%
Debt limit28,634,250
Net debt applicable to limit (B)12,260,000
Legal debt margin$16,374,250
Legal debt margin as a percentage of limit57.18%
Legal Debt Margin Calculation for Fiscal Years 2004 Through 2013
Legal Debt
Net DebtLegalMargin as a
FiscalDebtApplicable toDebtPercentage
YearLimitLimitMarginof Debt Limit
2004$19,133,440$ - $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%
201329,819,52912,685,00017,134,52957.46%
(A)The debt limit within Minnesota Statutes, Section 475.53, subd.1) is as follows:
1. For years after 2013, 3% of the Assessor Estimated Market Value of taxable property within the City.
2. For years prior to 2014, 3% of the Taxable Market Value of property within the City, after exclusions.
(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.
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT Table 13
Last Ten Fiscal Years
2005 - 20072008200920102011201220132014
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$162,056
Intergovernmental:
Market Value TIF credit - 14,00219,55428,11834,351 - - -
Net available revenue$0$257,161$286,696$269,972$245,884$175,832$170,496$162,056
Debt service:
Principal$ - $ - $9,000$43,000$48,000$53,000$58,000$62,000
Interest - 158,325152,363151,063148,788146,263143,488140,488
Total debt service$0$158,325$161,363$194,063$196,788$199,263$201,488$202,488
CoverageN/A162%178%139%125%88%85%80%
Economic Development Authority
Lease Revenue Bonds Series 2007B:
Annual appropriation of liquor net revenues$ - $210,264$497,200$364,000$390,000$386,000$390,000$384,000
Investment income - 8,638711,1051,5001,000(2,500)1,230
Issuance costs and administration (expense)(A) - (113,491)(2,000)(2,556)(2,000)(2,000)(2,332)(2,200)
Net available revenue$0$105,411$495,271$362,549$389,500$385,000$385,168$383,030
Debt service:
Principal$ - $ - $ - $140,000$150,000$155,000$165,000$170,000
Interest - 208,264240,305237,155230,630223,768213,178209,030
Total debt service$0$208,264$240,305$377,155$380,630$378,768$378,178$379,030
CoverageN/A51%206%96%102%102%102%101%
(A)Restated issuance costs to implement change in accounting principal.
Note: Details regarding the City's outstanding debt can be found in Note 7 of the financial statements.
Fiscal Year
194
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Per
Capita
FiscalPersonalPersonalUnemployment
YearPopulationIncomeIncomeRate
200518,261$442,135,332$24,2123.80%
200618,288442,789,05624,2123.90%
200718,124438,818,28824,2124.60%
200818,137439,133,04424,2125.50%
200918,361444,556,53224,2128.00%
201019,496472,037,15224,2127.40%
201119,568487,243,20024,9006.50%
201219,667507,408,60025,8005.60%
201319,667478,616,11224,3364.80%
201419,674502,434,61225,5384.10%
Sources are as follows:
Population: Data for the years 2005-2009 provided by the Metropolitan Council.
Data for 2010 is from the 2010 US Census Data for 2011-2014 is estimated by the US Census Bureau.
Per Capita Income:
Data for 2005-2014 provided by the US Census Bureau, 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 Inc60010.32%60010.35%
Independent School District 1349520.27%52420.30%
Crestview Lutheran Home27130.15%23330.14%
City of Columbia Heights20340.11%19640.12%
Fairview - Columbia Heights Clinic12050.06%9850.06%
Unique Thrift Store10060.05%N/AN/AN/A
Rainbow FoodsN/AN/AN/A8560.05%
Invest Cast Inc8670.05%6570.04%
La Casita Mexican Restaurant45100.02%5980.03%
Bobby & Steve's Auto World5380.03%46100.03%
McDonald'sN/AN/AN/A4990.03%
SAVERS4890.03%N/AN/AN/A
Total 2,0211.07%1,9551.15%
(A) Employment data is not compiled for individual cities within Minnesota counties.
(B) 2006 data was used to estimate 2005.
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, and the Minnesota Department of Employment
and Economic Development. 2006 data from Official Statement for the City of Columbia Heights 2006A GO bond series.
2005 (B)2014
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program2005200620072008
General government
Mayor/council5555
Administration5444
Finance12121313
Public safety:
Police30313134
Fire35363329
Public works16171617
Culture and recreation:
Library21222225
Parks5555
Recreation15161617
Community development7776
Water4454
Sewer4443
Refuse- - - -
Storm sewer- - - 1
Liquor37374238
Total196200203201
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.
Certain information from prior years' presentations has been restated in this table to conform to the current
presentation.
Employees as of December 31,
198
Table 16
200920102011201220132014
555555
5101111104
141314131313
353635373635
313032333131
181716161521
211921202121
555555
141316151515
655444
444444
333344
- - - - - -
1 1 1 1 1 1
404139404040
202202207207204203
Employees as of December 31,
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
200520062007
General government:
Resolutions approved by City Council (A)92234198
Ordinances adopted by City Council201412
Public safety:
Police:
Part I crimes (B)1,2801,1671,246
Part II crimes (B)3,4963,1843,144
Fire:
Emergency medical calls (B)1,8731,8061,888
Fire calls (B)581387445
Inspections & Related Actions (B)2,3793,7094,603
Public works:
Street paving and patching (tons of asphalt)4097101,910
Street sweeping (tons of debris)658637648
Trees removed 296188357
Culture and recreation:
Library:
Items in collection68,22670,35471,594
Circulation 115,598119,593125,222
Reference inquiries17,22515,10613,715
Parks and recreation:
Athletics participants (C)1,9881,6541,537
Other programs, estimated attendance (D)9,0009,0008,000
Number of paid room rentals164191185
Community development:
Number of business licenses issued327342306
Number of building permits issued (E)1,3041,7011,313
Construction value of permits issued$13,041,878$26,798,827$22,230,118
Water:
Consumption (thousands of gallons)527,621529,581538,844
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 30)514,810536,920495,580
Miles of line cleaned/rodded/root-sawed283927
Refuse:
Refuse (tons)8,8638,3976,587
Recycling (tons)1,8631,7211,522
Yardwaste (tons)892645654
Storm sewer:
No operating indicators availablenot availnot availnot avail
Liquor:
Number of units sold798,900758,000768,000
(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.
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
2008200920102011201220132014
2471701151591599498
26121215532
1,098882768756743not availnot avail
2,9661,2751,6831,5761,408not availnot avail
2,0931,6941,6641,7221,8391,9421,811
385660846764752852729
6,9553,7245,7206,0735,4135,2495,077
1,4151,0331,0548691,029224782
420581638712350574540
175121180180157284217
72,42069,70272,05571,30372,98576,65878,137
126,271120,705131,885125,051129,624121,827117,888
13,79317,77114,35216,60114,54716,06813,208
1,5101,6021,5004,2994,2325,5345,125
8,0008,0008,0008,0009,00010,48510,637
190210160177135139140
363379393334323346339
1,1131,1871,3511,2901,0581,3031,212
$21,917,792$13,376,732$14,481,712$7,986,467$7,203,199$7,388,271$7,609,375
518,791518,299516,068454,223495,870461,520449,415
511,090437,520444,820485,000455,210455,310467,680
29392625263333
7,3237,2396,7706,7896,5636,6846,648
1,3181,0361,6991,6051,6101,6901,670
7277731,1001,2701,2701,1691,250
not availnot availnot availnot availnot availnot availnot avail
920,1211,029,1391,028,1601,060,1501,103,7901,045,1881,038,985
Fiscal Year
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program2005200620072008
General government:
City hall square footage 28,53028,53028,53028,530
Public safety:
Police Stations 1111
Fire Stations 1111
Public Safety Bldg square footageNote ANote ANote ANote A
Public works:
Office and shop square footage31,07531,07531,07531,075
Trunk highway miles 3333
County road miles 6666
City street miles62626262
Alley miles19191919
Culture and recreation:
Libraries 1111
Library square footage7,8967,8967,8967,896
Parks13131313
Playgrounds11111111
Gymnasiums square footage - - - -
Mtg & banquet rooms square footage22,00022,00022,00022,000
Community development:
Senior high-rise apartments145145145145
Water:
Watermain miles66666666
Sewer:
Sanitary sewer miles59595959
Refuse:
Recycling centers 1111
Storm sewer:
Storm sewer miles34343434
Liquor:
Retail stores owned 1113
Retail stores leased222 -
(A)For years prior to 2010, the police and fire stations are included in the City Hall square footage reported above.
Beginning in 2010, the police and fire stations were in a separate public safety facility.
Sources: Various City departments.
Fiscal Year
202
Table 18
200920102011201220132014
28,53028,53028,53028,53028,53028,530
111111
111111
Note A47,08847,08847,08847,08847,088
31,07531,07531,07531,07531,07531,075
333333
666666
626262626262
191919191919
111111
7,8967,8967,8967,8967,8967,896
131313131313
111111111111
12,72612,72612,72612,72612,72612,726
22,00022,00022,00022,00022,00022,000
145145145145145145
666666666666
595959595959
111111
343434343434
333333
- - - - - -
Fiscal Year
203
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204
IV. OTHER REQUIRED REPORTS SECTION
205
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206
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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 States, 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, 2014, and the related notes to the financial
statements, and have issued our report thereon dated June 5, 2015.
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. 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.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 5, 2015
207
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208
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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, 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, 2014, 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 5, 2015.
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
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
209
City of Columbia Heights, Minnesota
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters
Page 2
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.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 5, 2015
210
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
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, 2014, and have
issued our report thereon dated June 5, 2015. 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.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 5, 2015
211
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, 2014
Line
ItemAccount DescriptionTotal Projects
Assets:
Current assets:
111 Cash - unrestricted $11,562
114 Cash - tenant security deposits18,264
100 Total cash 29,826
Accounts and notes receivable:
122 Accounts receivable - HUD other projects123,999
126 Accounts receivable - tenants5,539
120 Total receivables, net of allowance129,538
Investments:
131 Investments - Unrestricted882,809
150 Total current assets 1,042,173
Noncurrent assets:
Capital assets:
161 Land 177,375
162 Buildings 3,420,349
163 Furniture, equipment and machinery - dwellings337,529
164 Furniture, equipment and machinery - administration8,842
166 Less: accumulated depreciation(2,810,041)
167 Construction in progress 5,976
160 Total capital assets, net of accumulated depreciation1,140,030
180 Total noncurrent assets1,140,030
190 Total assets 2,182,203
Liabilities:
Current liabilities:
312 Accounts payable <= 90 days$26,636
333 Accounts payable - other governments20,767
341 Tenant security deposits 18,264
342 Unearned revenue 2,642
345 Other current liabilities 55,505
310 Total current liabilities123,814
350 Total noncurrent liabilities0
300 Total liabilities 123,814
Net Position:
508.4 Net investment in capital assets1,140,030
512.4 Unrestricted net position 918,359
513 Total net position$2,058,389
212
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, 2014
Page 2 of 2
Public HousingPublic Housing
OperatingCapital Fund
Line SubsidyProgram
ItemAccount Description14.85014.872Total Projects
Revenue:
703 Net tenant rental revenue$356,004$ - $356,004
704 Tenant revenue - other3,896 - 3,896
706 HUD PHA grants95,703203,855299,558
715 Other revenue6,611 - 6,611
711 Investment income -unrestricted2,698 - 2,698
700 Total revenue464,912 203,855 668,767
Expenses:
911 Administrative salaries25,500 - 25,500
912 Auditing fees2,277 - 2,277
913 Outside management fees165,269 - 165,269
914 Advertising and marketing156 - 156
916 Office Expenses1,791 - 1,791
917 Legal expense709 - 709
919 Other expense1,206 - 1,206
931 Water 12,066 - 12,066
932 Electricity50,297 - 50,297
933 Gas 59,946 - 59,946
936 Sewer 9,912 - 9,912
938 Other utilities expense16,300 - 16,300
942 Ordinary maintenance and operations - materials and other30,734 - 30,734
943 Ordinary maint. and operations contracts - HVAC10,938 - 10,938
943 Ordinary maint. and operations contracts - snow removal3,457 - 3,457
943 Ordinary maint. and operations contracts - elevator8,602 - 8,602
943 Ordinary maint. and operations contracts - grounds2,704 - 2,704
943 Ordinary maint. and operations contracts - unit turnaround8,425 - 8,425
943 Ordinary maint. and operations contracts - electrical - - -
943 Ordinary maint. and operations contracts - plumbing - - -
943 Ordinary maint. and operations contracts - extermination1,009 - 1,009
943 Ordinary maint. and operations contracts - janitorial8,413 - 8,413
943 Ordinary maint. and operations contracts - routine maintenance8,449 - 8,449
943 Ordinary maint. and operations contracts - miscellaneous259 - 259
952 Protective services73,321 - 73,321
961 Insurance premiums19,106 - 19,106
962 Other general expenses4,392 - 4,392
963 Payments in lieu of taxes21,312 - 21,312
969 Total operating expenses546,550 0 546,550
974 Depreciation107,806107,806
900 Total expenses654,356 0 654,356
1001Operating transfers in203,855 - 203,855
1002Operating transfers out - (203,855)(203,855)
1010 Total other financing sources (uses)203,855 (203,855)0
1000Excess (deficiency) of revenue over expenses and
and other financing uses (sources)$14,411$0$14,411
Memo account information:
1103 Beginning equity$2,043,978$ - $2,043,978
1120 Unit months available1,212 - 1,212
1121 Number of unit months leased1,176 - 1,176
213
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