HomeMy WebLinkAbout2015 CAFRCITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
PREPARED BY:
FINANCE DEPARTMENT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2015
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
TABLE OF CONTENTS
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I. INTRODUCTORY SECTION
Principal City Officials 3
Organizational Chart 4
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial 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
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1092
Budgetary Comparison Schedule - HRA (Component Unit)
Parkview Villa North & South FundsStatement 1194
Schedule of Funding Progress for the Retiree Health PlanStatement 1295
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - General
Employees Retirement FundStatement 1396
Schedule of Pension Contributions - General Employees Retirement FundStatement 1497
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - Public
Employees Police and Fire FundStatement 1598
Schedule of Pension Contributions - Public Employees Police and Fire FundStatement 1699
Notes to RSI 100
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental FundsStatement 17106
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental FundsStatement 18107
Subcombining Balance Sheet - Nonmajor Special Revenue FundsStatement 19110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue FundsStatement 20112
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Cable Television FundStatement 21114
Actual - Police Forfeiture FundStatement 22115
Actual - Public Safety Grants FundStatement 23116
Budget and Actual - Library FundStatement 24117
Actual - After School Programs FundStatement 25118
Actual - Recreation Contributed Projects FundStatement 26119
Actual - Contributed Projects - Other FundStatement 27120
Actual - Special Projects FundStatement 28121
Budget and Actual - Planning and Inspections FundStatement 29122
Actual - Anoka County Comm Dev Programs FundStatement 30123
Economic Development Authority (Component Unit):
Budgetary Comparison Schedule - Administration FundStatement 31124
Subcombining Balance Sheet - Nonmajor Debt Service FundsStatement 32126
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service FundsStatement 33128
Subcombining Balance Sheet - Nonmajor Capital Project FundsStatement 34132
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project FundsStatement 35133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Position Statement 36136
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 37137
Subcombining Schedule of Cash FlowsStatement 38138
Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 39139
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 40140
Subcombining Schedule of Cash FlowsStatement 41141
Refuse Utility Fund:
Subcombining Schedule of Net Position Statement 42142
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 43143
Subcombining Schedule of Cash FlowsStatement 44144
Storm Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 45145
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 46146
Subcombining Schedule of Cash FlowsStatement 47147
Liquor Fund:
Subcombining Schedule of Net Position Statement 48149
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 49150
Subcombining Schedule of Cash FlowsStatement 50152
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Internal Service Funds:
Combining Statement of Net PositionStatement 51156
Combining Statement of Revenues, Expenses and Changes in Fund
Net PositionStatement 52157
Combining Statement of Cash FlowsStatement 53158
Municipal Service Center:
Subcombining Schedule of Net Position Statement 54159
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 55160
Subcombining Schedule of Cash FlowsStatement 56161
Information Systems Fund:
Subcombining Schedule of Net Position Statement 57162
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 58163
Subcombining Schedule of Cash FlowsStatement 59164
Insurance Fund:
Subcombining Schedule of Net Position Statement 60165
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 61166
Subcombining Schedule of Cash FlowsStatement 62167
Compensated Absences Fund:
Subcombining Schedule of Net Position Statement 63168
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 64169
Subcombining Schedule of Cash FlowsStatement 65170
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 66172
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Positions by ComponentTable 1176
Changes in Net PositionTable 2178
Fund Balances - Governmental FundsTable 3182
Changes in Fund Balances - Governmental FundsTable 4184
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of All Taxable PropertyTable 5188
Direct and Overlapping Property Tax RatesTable 6189
Principal Property TaxpayersTable 7191
Property Tax Levies and CollectionsTable 8192
Debt Capacity:
Ratios of Outstanding Debt by TypeTable 9194
Ratios of Outstanding Net General Bonded Debt by TypeTable 10196
Direct and Overlapping Governmental Activities DebtTable 11198
Legal Debt Margin InformationTable 12199
Pledged Revenue Coverage Non-Obligation DebtTable 13200
Demographic and Economic:
Demographic and Economic StatisticsTable 14202
Principal EmployersTable 15203
Operating Information:
City Government Employees by Function/ProgramTable 16204
Operating Indicators by Function/ProgramTable 17206
Capital Asset Statistics by Function/ProgramTable 18208
IV. OTHER REQUIRED REPORTS SECTION
Minnesota Legal Compliance Report 213
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 215
Report on Supplementary Information - Financial Data Schedule217
U.S. Department of Housing and Urban Development:
Financial Data Schedule 218
Financial Data Schedule - Statement and Certification of Actual Modernization Costs220
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2015
NameOfficial Title
Mayor and Council:
Gary L. PetersonMayor
Johin Murzyn, JrCouncilmember
Donna SchmittCouncilmember
Bruce NawrockiCouncilmember
Robert A. WilliamsCouncilmember
Administration:
Walter FehstCity Manager
Kelli BourgeoisHuman Resources Director, Assistant to City Manager
Joseph KloiberFinance Director, Treasurer
Jim HoeftCity Attorney
Kevin HansenPublic Works Director, City Engineer
Scott NadeauChief of Police
Gary GormanChief of Fire
Renee DoughertyLibrary Director
Joe HogeboomCommunity Development Director
Keith WindschitlRecreation Services Director
Larry ScottLiquor Operations Manager
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City of Columbia Heights
Organizational Chart
2015
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 (20)
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
Accounting Clerk 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 (4)
FT Store Supervisor (2)
PT Store Supervisor (4)
Retail Clerk (30 PT)
IS Director
Assistant IS Director
IS Technician
COMMUNITY DEVELOPMENT
Community Development Director:Joe Hogeboom
City Planner
Building Official
Secretary II: Permits
Secretary II: Community Development (PT)
LIBRARY
Library Director:Renee Dougherty
Clerk-Typist II (2)
Library Clerk (1)
Library Supervisor (3 PT)
Page (8 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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City of Columbia Heights | Finance Department
590 40th Avenue NE, Columbia Heights, MN 55421 ▪ Ph: 763‐706‐3600 ▪ Fax: 763‐706‐3637 ▪ www.columbiaheightsmn.gov
June 13, 2016
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, 2015, is hereby submitted. The City’s management assumes responsibility
for both the completeness and the 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, Certified Public Accountants, have issued an unmodified (“clean”)
opinion on the City of Columbia Heights financial statements for the year ended December 31,
2015. 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 principles 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 19,758. The City is empowered to levy a tax on
both real and personal property within its boundaries.
All City funds, departments, commissions and other organizations for which the City of
Columbia Heights is financially accountable, including all component units, are presented within
the Comprehensive Annual Financial Report. The Columbia Heights Housing and
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City of Columbia Heights
Letter of Transmittal
June 13, 2016
Page 2
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 2015, 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), and single family housing
that is affordable compared to the metropolitan area average, there has been a relatively stable
demand for housing in the City. However, as an older, fully developed, inner-ring suburb of a
major city, 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, which is periodically reviewed for long-term sustainability. 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 using moderate increases in property taxes.
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.
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City of Columbia Heights
Letter of Transmittal
June 13, 2016
Page 3
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, 2015, 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 planning and inspections 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 and
recognize all license and permit revenues in the general fund.
CURRENT MAJOR INITIATIVES
For a number of years, the City has emphasized a community-oriented approach to policing. This
consists of specific initiatives and strategies involving key stakeholders, such as the local school
district, as partners. Not only has this lead to a reduction in crime and greater communication
with stakeholders, but it has also led to some notable recognition of these successes. In 2012, the
City was awarded with the International Chiefs of Police (IACP) Community Policing Award,
which is only awarded to one agency in the world per year, in each of five population categories.
In 2015, the City was also selected as a finalist for this award.
Given 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. These properties are currently being
marketed and new homes are being built. In 2015, the Authority also entered into an agreement
with a private developer to issue approximately $27 million in 2016 conduit financing to assist
the developer’s construction of approximately 200 units of multi-family senior housing on an
under-utilized former industrial site. The developer will repay the financing from rental income
and other sources, at no cost to the City.
In 2014, by nearly a 2-to-1 majority, the City’s voters approved by referendum the issuance of $7
million in general obligation bonds to construct a replacement for the City’s library building,
using a redevelopment site previously purchased by the Economic Development Authority. The
city council also committed an additional $2.3 million of existing resources to the construction of
this 22,600 square-foot facility. Completion is scheduled for mid-2016.
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City of Columbia Heights
Letter of Transmittal
June 13, 2016
Page 4
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, 2014. The Certificate
of Achievement is a prestigious national award that recognizes conformity with the highest
standards for preparation of state and local government financial reports. In order to be awarded
a Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized Comprehensive Annual Financial Report whose contents conform to program
standards. The CAFR must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
report continues to conform to the Certificate of Achievement program requirements, and we are
submitting it to the GFOA 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, 2015, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Columbia Heights,
Minnesota, as of December 31, 2015, and the respective changes in financial position, and,
where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 10 to the financial statements, City of Columbia Heights, Minnesota
adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial
Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December
31, 2015. Our opinion is not modified with respect to this matter.
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, the schedule of
funding progress for the retiree health plan, the schedules of pension contributions and the
schedules of proportionate share of pension liability, 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 13, 2016, 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.
St. Paul, Minnesota
June 13, 2016
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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, 2015. 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 and deferred outflows of the City exceeded its liabilities and deferred inflows at December
31, 2015, by $66,157,185 (net position). Of this amount, $21,815,505 or 33% is unrestricted net
position which may be used to meet the City’s ongoing obligations to citizens and creditors.
Net position of the government-wide financial statements was negatively impacted in the current year
by a $7,711,530 due to the required implementation of a new accounting standard. This is more fully
described in the analysis below and in the notes to the financial statements. Apart from the prior
period adjustment for this change in accounting standards, the City’s total net position otherwise
increased during 2015 by $2,142,643 or approximately 3% from the prior year. $913,600 of this
increase was from governmental activities, and $1,229,043 of this increase was from the City’s
business-type activities.
As of December 31, 2015, the combined fund balances of the City’s governmental funds were
$29,646,058. This is an increase of $2,862,631 or 11% from the prior year. Also, approximately
23% of the combined fund balances of the City’s governmental funds were unassigned fund balance,
available for spending at the City Council’s discretion.
As of December 31, 2015, unassigned fund balance in the General fund was $6,873,054 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, 2015.
During 2015, the City’s total bonded debt increased by $5,615,863 to an end of year total of
$29,237,863 from the issuance of $6,875,000 in general obligation bonds in 2015 for construction to
replace the City’s library building, offset by principal payments on existing bonded debt.
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.
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Management’s Discussion and Analysis
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.
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 2015 are as follows:
18
Management’s Discussion and Analysis
General fund
Municipal state aid street fund
Capital equipment replacement general government fund
Capital improvements-PIR fund
Capital building library fund
HRA (component unit) Parkview villa north and south 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 basic governmental fund financial statements are
presented as Statements 3 through 5 of 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.
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 municipal service center (for vehicle and facilities maintenance), information systems,
insurance, and compensated absences. As the municipal service center, insurance and compensated
absences transactions predominately benefit the governmental rather than the business-type
functions, they have been included within governmental activities in the government-wide financial
statements. Similarly, because the information systems support predominately benefits 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 the HRA
(component unit) Parkview villa north and south fund, are presented as Statement 10 and Statement
11 respectively, of this report. Certain required supplementary information on pensions and other
post-employment benefits are presented as Statements 12 through 16 of this report. The combining
statements referred to earlier in connection with non-major governmental funds and internal service
funds, together with individual fund statements and schedules, are presented as Statements 17
through 66 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, 2015, the City’s assets exceeded its liabilities by $66,157,185.
$39,096,956 or 59% 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 would not 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,
$21,815,505 or 33%, may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2015, 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.
2015 2014 2015 2014 2015 2014
Assets:
Current and other assets $44,419,006$33,274,009$10,807,728$11,125,437$55,226,734$44,399,446
Capital assets 42,554,18139,187,07816,459,03815,342,18659,013,21954,529,264
Total assets 86,973,187 72,461,087 27,266,766 26,467,623 114,239,953 98,928,710
Deferred outflows of resources (see below )1,315,454 - 174,952 - 114,239,953 -
Liabilities:
Current liabilities 4,260,5252,185,473 1,638,9221,609,9475,899,4473,795,420
Noncurrent liabilities (see below )35,468,85817,316,5107,095,0776,314,50042,563,93523,631,010
Total liabilities 39,729,38319,501,9838,733,9997,924,44748,463,38227,426,430
Deferred inflows of resources (see below )962,490 - 147,332 - 48,463,382 -
Net position:
Net invested in capital assets 27,168,55526,049,05711,928,40110,729,45739,096,95636,778,514
Restricted 4,710,9683,752,839533,756543,8225,244,7244,296,661
Unrestricted 15,717,27523,157,2086,098,2307,269,89721,815,50530,427,105
Total net position $47,596,798$52,959,104$18,560,387$18,543,176$66,157,185$71,502,280
CITY OF COLUMBIA HEIGHTS' NET POSITION
TotalsGovernmental Activities Business-Type Activities
20
Management’s Discussion and Analysis
The City adopted new accounting guidance, GASB Statement No. 68, Accounting and Financial
Reporting for Pensions – an Amendment of GASB Statement No. 27 for the year ended December
31, 2015. Essentially, the standard required the unfunded portion of defined benefit pension
plans to be reported by all participating employers. Recording the net pension liability and the
pension related deferred outflows and inflows of resources do not change the City’s future
funding requirements or obligations under the plans, which are determined by Minnesota
statutes.
Net position was negatively impacted by $7,711,530 at December 31, 2015 due to the
implementation of this standard. Pension-related amounts included in the above schedule related
to the standard are as follows:
Changes in net position - governmental activities. During the current year, governmental activities
increased the City’s net position by $913,600 or 1%. Significant elements of this change included:
Governmental activities revenue increased $1,604,904 or 9% over the prior year. This was
primarily from an increase in grant revenues of $1,944,646 over the prior year, offset by a
smaller increase in the fair value of investments in the current year, compared to the prior
year. (We note that under the City’s investment policy, interest-bearing investments are held
to maturity to address such temporary fluctuations in fair value.)
Governmental activities expenses increased $1,124,219 or 7% over the prior year. This was
primarily from an increase in grant-funded expenses, offset by a decrease in operating
expenses for the government’s public housing program which was terminated in 2015. The
increase in grant-funded activity included two federally-funded fulltime firefighter positions,
shoreline and park improvements at Labelle Pond, and street repairs funded by special
assessments. (Within the statement of activities, special assessments are reported as
program-specific grants.)
The pending return of approximately $927,142 of prior years’ unspent grant funds to the U.S.
Department of Housing and Redevelopment is reported as a special item for 2015 in the
statement of activities, coinciding with the termination of the HRA’s public housing program.
Implementation of the new pension accounting standard mentioned above reduced the net
position of the government activities at December 31, 2015, by $6,467,161. This includes
both the prior period adjustment shown below of $6,275,906 and the current year expenses of
$191,255 which are distributed across the functional categories of the governmental
activities.
2015 2014 2015 2014 2015 2014
Pension-related:
Deferred outflows of resources ($1,315,454) $ - ($174,952)$ - ($1,490,406) $ -
Noncurrent liabilities 6,820,125 - 1,271,989 - 8,092,114 -
Deferred outflows of resources 962,490 - 147,332 - 1,109,822 -
Total related to pensions $6,467,161 $0$1,244,369 $0$7,711,530 $0
Governmental Activities Business-Type Activities Totals
21
Management’s Discussion and Analysis
2015 2014 2015 2014 2015 2014
Revenues:
Program revenues:
Charges for services $2,190,975 $2,258,503 $15,101,749 $15,100,943$17,292,724$17,359,446
Operating grants and
contributions 1,914,513 993,119 96,518 91,421 2,011,031 1,084,540
Capital grants and
contributions 1,444,055 606,479 747,334 47,369 2,191,389 653,848
General revenues:
Property taxes 10,512,483 10,310,867 - - 10,512,483 10,310,867
Tax increment collections 491,639 463,837 - - 491,639 463,837
Grants and contributions not
restricted to specific programs 1,682,480 1,496,804 - - 1,682,480 1,496,804
Unrestricted investment earnings 342,384 1,091,263 62,521 252,360 404,905 1,343,623
Gain on sale of capital assets 0
used in governmental activities 247,247 - - - 247,247 -
Total revenues 18,825,776 17,220,872 16,008,122 15,492,093 34,833,898 32,712,965
Expenses:
General government 2,128,9642,104,025 - - 2,128,9642,104,025
Public safety 6,265,4855,801,747 - - 6,265,4855,801,747
Public works 3,529,5473,052,844 - - 3,529,5473,052,844
Culture and recreation 2,926,0042,565,755 - - 2,926,0042,565,755
Community development 1,555,6401,943,576 - - 1,555,6401,943,576
Interest on long-term debt 948,493761,967 - - 948,493761,967
Water - - 2,367,9542,336,4752,367,954 2,336,475
Sewer - - 1,621,5061,789,2601,621,506 1,789,260
Refuse - - 1,753,4061,695,9971,753,406 1,695,997
Storm sewer - - 541,926315,809 541,926 315,809
Liquor - - 8,125,1888,148,7888,125,188 8,148,788
Total expenses 17,354,133 16,229,914 14,409,980 14,286,329 31,764,113 30,516,243
Increase (decrease) in
net position before transfers and special items1,471,643 990,958 1,598,142 1,205,764 3,069,785 2,196,722
Transfers 369,099 361,426 (369,099) (361,426) - -
Special item (927,142) - - - (927,142) -
Increase in net position 913,600 1,352,384 1,229,043 844,338 2,142,643 2,196,722
Net position - January 1, as previously reported52,959,104 51,606,720 18,543,176 17,698,838 71,502,280 69,305,558
Prior period adjustment (6,275,906) - (1,211,832) - (7,487,738) -
Net position - January 1, as restated 46,683,198 51,606,720 17,331,344 17,698,838 64,014,542 69,305,558
Net position - December 31 $47,596,798$52,959,104$18,560,387$18,543,176$66,157,185$71,502,280
Business-Type Activities Totals
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION
Governmental Activities
22
Management’s Discussion and Analysis
23
Management’s Discussion and Analysis
Changes in net position - Business-type activities. In 2015, business-type activities increased the
City’s total net position by $1,229,043 or 2%. The significant elements of this increase include:
Business-type activities revenue increased by $516,029 or 3% over the prior year. This was
the result of an increase in grant revenues of $700,000 for storm sewer improvements, offset
by a smaller increase in the fair value of investments in the current year, compared to the
prior year. (We note that under the City’s investment policy, interest-bearing investments are
held to maturity to address such temporary fluctuations in fair value.)
Utility rates set by the City Council remained the same for 2015 as for 2014.
Municipal liquor sales remained substantially the same for 2015 as for 2014.
Changes in the expenses of the various business-type activities were largely offsetting,
yielding an increase of $123,651 or less than 1% over the prior year.
Implementation of the new pension accounting standard mentioned above reduced the net
position of the business-type activities at December 31, 2015, by $1,244,369. This includes
both the prior period adjustment shown above of $1,211,832 and the current year expenses of
$32,537 which are distributed across the functional categories of the business-type activities.
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, 2015, the City’s governmental funds reported combined fund balances of
$29,646,058. Committed, assigned and unassigned fund balance, which is available for spending at
the City’s discretion, has a combined balance of $ 19,727,179. 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 ($97,572), debt service ($5,280,447), tax increment purposes
($1,863,077), and various other purpose restrictions ($2,677,783) 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 decreased by $361,918 or 5%. Significant elements of this decrease include:
Transfers from the General to the other funds increased by $985,131 or 136% over the prior
year, to fund the purchase of a firetruck ($500,000 to the Capital Equipment Replacement
25
Management’s Discussion and Analysis
Fund), to call and redeem certain general obligation bonded debt ($236,000 to the non-major
governmental funds), and for other internal funding purposes.
General Fund expenditures increased by $ 389,987 or 4% over the prior year. This reflects
both planned inflationary increases of approximately 2.5%, and reduced staffing vacancies
within the public safety and public works functions compared to the prior year.
General Fund revenues increased by $78,202 or less than 1% over the prior year. This
included the offsetting factors of an increase in property taxes of $229,891 or 3% over the
prior year, which is consistent with the intended annual growth under the City’s five-year
financial plan, and $208,585 less of an annual increase in the fair value of investments
compared to the prior year. (We note that under the City’s investment policy, interest-
bearing investments are held to maturity to address such temporary fluctuations in fair value.)
The changes in fund balance of the other major governmental funds in 2015, and significant elements
of those changes, were as follows:
The Municipal State Aid Street Fund increased by $668,288. Roughly half of this increase is
the amount by which current year state grants restricted for reconstruction and maintenance
of state roads within the City exceeded the related current year expenditures. The remainder
of this increase was a transfer in from the Capital Improvements PIR Fund related to special
assessments collected for portions of these street projects.
The Capital Equipment Replacement General Government Fund decreased by $116,523.
This reflects the amount by which 2015 equipment purchases exceeded investment income
and transfers-in.
The Capital Improvements PIR Fund decreased by $572,568. This decrease is the amount by
which current year street project expenditures and a related transfer to street projects in the
Municipal State Aid Street Fund, exceeded special assessments collected in the current year.
PIR is the acronym for public improvement revolving fund.
The Capital Building Library Fund increased by $5,557,468. This is the amount by which
transfers in from other funds and the issuance of general obligation bonds, exceeded the cost
of construction-in-process for a new (replacement) library facility.
The Housing and Redevelopment Authority (component unit) Parkview Villa North and
South Fund decreased by $821,803 primarily as a result of the $927,142 special item
described above for the governmental activities, in conjunction with the 2015 termination of
the HRA’s public housing program.
The combined fund balances of the nonmajor governmental funds decreased by $1,490,313
or 13% over the prior year. The most significant element of this decrease was the net
transfers to the Capital Building Library Fund of $1,929,609 to fund a portion of the new
library facility with existing resources. Various other offsetting increases within the
aggregated activities of the nonmajor governmental funds amounted to $439,296 or 4% of
their prior year combined fund balances.
26
Management’s Discussion and Analysis
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, 2015, net position of the major proprietary funds included the following amounts
of unrestricted net position:
Water Fund $79,759
Sewer Fund $1,068,999
Refuse Fund $1,738,167
Storm Sewer Fund $165,165
Liquor Fund $2,097,546
The 2015 changes in net position of the major proprietary funds, apart from the effect of the prior
period adjustment described above for the business-type activities, included the following:
Water Fund $291,379
Sewer Fund $10,256
Refuse Fund $190,475
Storm Sewer Fund $584,879
Liquor Fund $119,956
Other factors concerning the finances of the proprietary funds are addressed above in the analysis of
the City’s business-type activities.
Budgetary Highlights
General Fund. The changes between the original and final 2015 General Fund budget consisted of:
Several small budget amendments to increase intergovernmental revenue, charges for
services, and miscellaneous other revenues, by a total of $58,923. These changes were paired
with related increases to budgeted police and fire expenditures of $58,923. This reflects
additional services and training funded by external entities in mid-year.
Amendments to appropriate $911,000 in additional transfers to other funds, for the purposes
listed above in the description of the changes in the fund balance of the General fund.
Actual general fund revenues in 2015 were more than budgeted by $118,252 or 1%:
This was primarily the result of $126,562 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 2015 were less than budgeted by $345, 211 or 3%:
Approximately $153,000 of this variance was across various recreation programs. In most
cases, this was from actual operating costs being less than estimated. In addition, some
restricted resources available in the non-major governmental funds in 2015 was utilized, in
27
Management’s Discussion and Analysis
accord with City policy, in lieu of assigned resources in the general fund annual budget.
Approximately $103,000 of this variance is attributable to the general government function.
This was primarily the result of budgeting for various contingent matters which did not incur
to the level budgeted. Also certain city hall rehabilitation initially included in the capital
improvement plan was deferred or eliminated after adoption of the budget.
Approximately $92,000 of this variance reflects staff vacancies, and new hires at entry level
wages instead of full level wages, within the public safety function in 2015.
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, 2015, amount to $59,013,219 net of accumulated depreciation. This investment in
capital assets includes land, buildings, equipment, infrastructure, and construction in progress.
City of Columbia Heights’ Capital Assets
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,325,624 $0($177,375)$5,148,249
Construction in progress 1,019,899 6,175,149 (1,243,957) 5,951,091
Total capital assets not being depreciated6,345,523 6,175,149 (1,421,332) 11,099,340
Capital assets - being depreciated:
Buildings 28,567,589 29,500 (5,352,327) 23,244,762
Equipment 8,445,431 727,654 (524,132) 8,648,953
Infrastructure 30,171,790 912,449 - 31,084,239
Total capital assets being depreciated67,184,810 1,669,603 (5,876,459) 62,977,954
Less accumulated depreciation for:
Buildings 12,791,628 638,685 (4,462,956) 8,967,357
Equipment 6,314,033 473,076 (477,362) 6,309,747
Infrastructure 15,237,593 1,008,416 - 16,246,009
Total accumulated depreciation 34,343,254 2,120,177 (4,940,318) 31,523,113
Capital assets being depreciated - net 32,841,556 (450,574) (936,141) 31,454,841
Governmental activities capital assets - net39,187,079 5,724,575 (2,357,473) 42,554,181
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 591,563 1,684,312 (508,276) 1,767,599
Total capital assets not being depreciated2,940,776 1,684,312 (508,276) 4,116,812
Capital assets - being depreciated:
Buildings 5,124,992 115,846 - 5,240,838
Equipment 2,509,940 80,224 (26,840) 2,563,324
Infrastructure 16,254,153 392,431 - 16,646,584
Total capital assets being depreciated23,889,085 588,501 (26,840) 24,450,746
Less accumulated depreciation for:
Buildings 1,516,779 152,718 - 1,669,497
Equipment 1,741,788 127,824 (26,840) 1,842,772
Infrastructure 8,229,109 367,145 - 8,596,254
Total accumulated depreciation 11,487,676 647,687 (26,840) 12,108,523
Capital assets being depreciated - net 12,401,409 (59,186) - 12,342,223
Business-type activities capital assets - net15,342,185 1,625,126 (508,276) 16,459,035
Total capital assets - net 54,529,264 7,349,701 (2,865,749) 59,013,216
29
Management’s Discussion and Analysis
Significant capital asset activity during 2015 included the following:
At December 31, 2015, the City had $6,379,995 of non-cancellable contractual commitments for
construction in 2016, primarily for the new library. Additional information on the City’s capital
assets can be found in Note 5 to the financial statements.
Long-term debt. During 2015, the City’s total bonded debt increased by $5,615,863 to an end of
year total of $29,237,863 from the issuance of $6,875,000 in general obligation bonds in 2015 for
construction to replace the library building, offset by principal payments on existing bonded debt.
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,
2015, the City’s debt limit under this statute was $32,815,845 and $18,460,000 of the City’s
outstanding debt was of the type to which this limit applies.
City of Columbia Heights’ Long-Term Debt
Year
Project StartedCost to DateStatus
Watermain Lining2013392,430 in-service
Street Reconstruction - Zone 32013912,450 in-service
Jackson Pond Reconstruction20131,148,632 in-progress
Watermain Lining2014476,460 in-progress
Concrete Alley Reconstruction2014727,810 in-progress
Library Building Replacement20144,438,964 in-progress
Recreational Splash Pad2015458,418 in-progress
Street Reconstruction - Zone 12015439,646 in-progress
As of December 31, 2015
2015 2014 2015 2014 2015 2014
General obligation bonds:
Repaid only with general taxes $18,460,000$12,260,000$ - $ - $18,460,000$12,260,000
Unamortized premium on above 273,863 - - - 273,863 -
With other pledged revenues 1,789,3052,083,0212,085,6952,401,9793,875,0004,485,000
Revenue bonds 2,549,0002,617,0004,080,0004,260,0006,629,0006,877,000
Due to other government 5,200,000 - - - 5,200,000 -
Compensated absences 1,068,7431,007,424162,942156,6371,231,6851,164,061
Net pension liability 6,820,125 - 1,271,989 - 8,092,114 -
Postemployment benefits other
than pensions 223,618191,151 - - 223,618191,151
$36,384,654$18,158,596$7,600,626$6,818,616$43,985,280$24,977,212
Governmental Activities Business-Type Activities Totals
30
Management’s Discussion and Analysis
At December 31, 2015, 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, 2015, 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, 2015, are repaid only with
tax increment and are unrated.
In conjunction with the 2015 sale of real property, the HRA owes a 30-year no-interest note payable
to the U.S. Department of Housing and Redevelopment for $5,200,000 with all principal due in 2045.
This amount is included in the financial statements within the amount reported as due to other
governments.
In addition to bonded debt and long-term amounts due to other governments, at yearend there was
long-term debt in the amount of $1,231,685 and $223,618 and $8,092,114; respectively, for
compensated absences, post-employment health insurance, and net pension benefit. Additional
information on the City’s long-term debt can be found in Note 7 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
3.6%. This is a decrease from a rate of 4.1% from the prior year. This compares to the average
annual 2015 state and national rates of 3.6% and 5.3% respectively. The Consumer Price Index in
the region compares favorably to national trends. These factors were considered when preparing the
City of Columbia Heights’ 2016 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.
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32
BASIC FINANCIAL STATEMENTS
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2015 Page 1 of 2
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
Current assets:
Cash and investments$32,653,991$5,386,018$38,040,009
Restricted asset: cash and investments with fiscal agent - 399,251399,251
Receivables - current:
Accounts (net of allowance for uncollectibles)104,3991,612,4791,716,878
Special assessments451,700 - 451,700
Taxes 426,356 - 426,356
Interest47,0179,45056,467
Due from other governmental units - current1,367,58849,0901,416,678
Internal balances(265,352)265,352 -
Prepayments162,05692,397254,453
Inventory - at cost53,8562,993,6943,047,550
Real estate held for resale738,689 - 738,689
Total current assets35,740,30010,807,73146,548,031
Noncurrent assets:
Receivables - noncurrent:
Special assessments1,994,655 - 1,994,655
Loans6,684,050 - 6,684,050
Capital assets (net of accumulated depreciation):
Land5,148,2492,349,2137,497,462
Buildings14,277,4063,571,34217,848,748
Equipment2,339,205720,5533,059,758
Infrastructure14,838,2318,050,32822,888,559
Construction in process5,951,0911,767,5997,718,690
Total noncurrent assets51,232,88716,459,03567,691,922
Total assets86,973,18727,266,766114,239,953
Deferred outflows of resources:
Related to pensions1,315,454174,9521,490,406
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, 2015 Page 2 of 2
GovernmentalBusiness-Type
ActivitiesActivitiesTotal
Current liabilities:
Accounts payable$1,166,950$482,396$1,649,346
Accrued salaries and withholdings payable321,19767,031388,228
Contracts payable - retained percentage213,09322,470235,563
Due to other governmental units1,058,003458,3251,516,328
Unearned revenue214,247 - 214,247
Accrued interest payable356,229103,151459,380
Deposits14,980 - 14,980
Compensated absences payable - current80,15612,21992,375
Bonds payable - current835,670493,3301,329,000
Total current liabilities4,260,5251,638,9225,899,447
Noncurrent liabilities:
Compensated absences payable - noncurrent988,587150,7231,139,310
Other postemployment benefits payable - noncurrent223,618 - 223,618
Bonds payable - noncurrent22,236,4985,672,36527,908,863
Due to other governmental units5,200,000 - 5,200,000
Net pension liability6,820,1251,271,9898,092,114
Total noncurrent liabilities35,468,8287,095,07742,563,905
Total liabilities39,729,3538,733,99948,463,352
Deferred inflows of resources:
Related to pensions962,490147,3321,109,822
Net investments in capital assets27,168,55511,928,40139,096,956
Restricted for:
Debt service1,174,473533,7561,708,229
Tax increment purposes858,712 - 858,712
Other purposes2,677,783 - 2,677,783
Unrestricted15,717,2756,098,23021,815,505
Total net position$47,596,798$18,560,387$66,157,185
Liabilities:
Net position:
Primary Government
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, 2015
Program Revenues
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$2,128,964$206,531
Public safety6,265,485703,489
Public works3,529,54751,991
Culture and recreation2,926,004227,224
Community development1,555,6401,001,740
Interest on long-term debt948,493 -
Total governmental activities17,354,1332,190,975
Business-type activities:
Water2,367,9542,730,516
Sewer1,621,5061,699,397
Refuse1,753,4061,896,230
Storm sewer541,926375,663
Liquor8,125,1888,399,943
14,409,98015,101,749
Total primary government$31,764,113$17,292,724
The accompanying notes are an integral part of these financial statements.
36
Statement 2
OperatingCapital
Grants andGrants andBusiness-Type
ContributionsContributionsGovernmentalActivitiesTotals
$ - $ - ($1,922,433)$ - ($1,922,433)
485,43915,350(5,061,207) - (5,061,207)
1,314,378811,654(1,351,524) - (1,351,524)
18,422252,260(2,428,098) - (2,428,098)
96,274364,791(92,835) - (92,835)
- - (948,493) - (948,493)
1,914,5131,444,055(11,804,590)0(11,804,590)
- - - 362,562362,562
- - - 77,89177,891
96,518 - - 239,342239,342
- 747,334 - 581,071581,071
- - - 274,755274,755
96,518747,33401,535,6211,535,621
$2,011,031$2,191,389(11,804,590)1,535,621(10,268,969)
General revenues:
Property taxes10,512,483 - 10,512,483
Tax increment collections491,639 - 491,639
Grants and contributions not
restricted to specific programs1,682,480 - 1,682,480
Unrestricted investment earnings342,38462,521404,905
Gain on sale of capital assets used
in governmental activities247,247 - 247,247
Transfers369,099(369,099) -
Special item(927,142) - (927,142)
Total general revenues, transfers, and special items12,718,190(306,578)12,411,612
Change in net position913,6001,229,0432,142,643
Net position - January 1, as previously reported52,959,10418,543,17671,502,280
Prior period adjustment(6,275,906)(1,211,832)(7,487,738)
Net position - January 1, as restated46,683,19817,331,34464,014,542
Net position - December 31$47,596,798$18,560,387$66,157,185
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
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, 2015
General Fund
Municipal State Aid
Street Fund
Capital Equipment
Replacement
General Gov't
Assets
Cash and investments$7,245,087$294,567$4,065,295
Receivables:
Accounts40,324 - -
Special assessments - - -
Taxes399,374 - -
Loans - - -
Interest12,837 - 7,600
Due from other governmental units95,126826,654 -
Interfund receivable45,200 - 165,000
Prepayments94,848 - -
Real estate held for resale - - -
Total assets$7,932,796$1,121,221$4,237,895
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$110,914$5,169$ -
Accrued salaries and withholdings payable271,8741,707 -
Contracts payable - retained percentage9,7089,165 -
Due to other governmental units118,635393 -
Interfund payable - - -
Unearned revenue152,504 - -
Deposits - - -
Total liabilities663,63516,4340
Deferred inflows of resources:
Unavailable revenue257,25915,000 -
Total deferred inflows of resources257,25915,000 -
Fund balance:
Nonspendable94,848 - -
Restricted - 1,089,787 -
Committed - - 4,237,895
Assigned44,000 - -
Unassigned6,873,054 - -
Total fund balances7,011,9021,089,7874,237,895
Total liabilities, deferred inflows
of resources, and fund balances$7,932,796$1,121,221$4,237,895
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 municipal service center, 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 PIR
Fund
Capital Building
Library Fund
HRA (Component
Unit) Parkview Villa
North & South Fund
Other Governmental
Funds
Interfund
Eliminations
Total
Governmental
Funds
$571,714$7,054,119$1,937,849$8,655,318$ - $29,823,949
- - 12,91451,161 - 104,399
1,800,180 - - 646,175 - 2,446,355
- - - 26,982 - 426,356
- - 6,585,00099,050 - 6,684,050
6009,2601,50012,120 - 43,917
85,000 - - 360,808 - 1,367,588
- - - 462,384(507,584)165,000
- - - 2,724 - 97,572
45,600 - - 693,089 - 738,689
$2,503,094$7,063,379$8,537,263$11,009,811($507,584)$41,897,875
$87,665$894,012$4,872$49,247$ - $1,151,879
1,091 - - 36,147 - 310,819
56,787128,533 - 8,900 - 213,093
- - 927,14011,835 - 1,058,003
- - - 507,584(507,584) -
- - - 53,602 - 206,106
11,945 - - 3,035 - 14,980
157,4881,022,545932,012670,350(507,584)2,954,880
1,784,092 - 6,585,000655,586 - 9,296,937
1,784,09206,585,000655,58609,296,937
- - - 2,724 - 97,572
- 3,773,6781,020,2513,937,591 - 9,821,307
561,5142,267,156 - 5,835,600 - 12,902,165
- - - - - 44,000
- - - (92,040) - 6,781,014
561,5146,040,8341,020,2519,683,875029,646,058
$2,503,094$7,063,379$8,537,263$11,009,811($507,584)$41,897,875
$29,646,058
41,337,766
4,096,937
2,433,761
(29,917,724)
$47,596,798
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, 2015
General Fund
Municipal State
Aid Street Fund
Capital
Equipment
Replacement
General Gov't
Revenues:
Taxes$8,781,533$ - $ -
Tax increment collections - - -
Special assessments - - -
Licenses and permits213,408 - -
Intergovernmental1,666,8891,047,041 -
Rents - - -
Charges for services592,599197 -
Fines and forfeitures96,551 - -
Investment income:
Interest and dividends72,948 - 50,980
Change in fair value30,339 - 16,800
Other revenues23,950 - -
Total revenues11,478,217 1,047,238 67,780
Expenditures:
Current:
General government1,881,711 - -
Public safety5,492,908 - 46,795
Public works1,534,891242,120 -
Culture and recreation1,483,765 - -
Community development - - -
Capital outlay:
Public safety 1,557 - 607,375
Public works 95,188 436,830 42,078
Culture and recreation 59,590 - 47,190
Community development - - -
Debt service:
Principal retirement - - -
Interest and fiscal charges - - -
Issuance costs - - -
Developer incentives - - -
Total expenditures 10,549,610 678,950 743,438
Revenues over (under) expenditures 928,607 368,288 (675,658)
Other financing sources (uses):
Transfers in 417,106 300,000 550,000
Transfers out (1,707,631) - -
Bonds issued - - -
Bond premium - - -
Sale of capital assets - - 9,135
Special item - - -
Total other financing sources (uses)(1,290,525)300,000 559,135
Net change in fund balance (361,918)668,288 (116,523)
Fund balance - January 1 7,373,820 421,4994,354,418
Fund balance - December 31 $7,011,902$1,089,787$4,237,895
The accompanying notes are an integral part of these financial statements.
40
Statement 4
Capital
Improvements PIR
Fund
Capital Building
Library Fund
HRA (Component
Unit) Parkview
Villa North &
South Fund
Other Governmental
Funds
Interfund
Eliminations
Total Governmental
Funds
$ - $ - $ - $1,734,158$ - $10,515,691
- - - 506,733 - 506,733
1,006,079 - - 110,655 - 1,116,734
- - - 413,139 - 626,547
- - 161,0651,204,189 - 4,079,184
- - 492,304 - - 492,304
26,188 - - 329,073 - 948,057
- - - 27,516 - 124,067
3,30030,32011,11765,260 - 233,925
1,3008,4703,40024,050 - 84,359
- 2,2608,711154,152 - 189,073
1,036,867 41,050 676,597 4,568,925 0 18,916,674
- - - 68,351 - 1,950,062
- - - 55,412 - 5,595,115
441,863 - - 1,183 - 2,220,057
- - - 1,098,228 - 2,581,993
- - 571,258564,962 - 1,136,220
- - - - - 608,932
421,719 - - 731,673 - 1,727,488
- 4,066,826 - - - 4,173,606
- - - 507,472 - 507,472
- - - 1,036,716 - 1,036,716
- - - 826,921 - 826,921
- 85,016 - - - 85,016
- - - 164,188 - 164,188
863,582 4,151,842 571,258 5,055,106 0 22,613,786
173,285 (4,110,792)105,339 (486,181)0 (3,697,112)
1,1312,683,399 - 1,455,274(4,977,811)429,099
(746,984)(183,790) - (2,459,406)4,977,811(120,000)
- 6,875,000 - - - 6,875,000
- 293,651 - - - 293,651
- - - - - 9,135
- - (927,142) - - (927,142)
(745,853)9,668,260 (927,142)(1,004,132)0 6,559,743
(572,568)5,557,468 (821,803)(1,490,313)0 2,862,631
1,134,082483,3661,842,05411,174,188 - 26,783,427
$561,514$6,040,834$1,020,251$9,683,875$0$29,646,058
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, 2015
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)$2,862,631
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.4,559,820
The net effect of various miscellaneous transactions involving capital assets, such as
sales, trade-ins and abandonments was a decrease in net position.(1,115,477)
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.(6,112,147)
Interest on long-term debt is reported in the governmnetal funds in the year it is paid.
Whereas, this amount is reported in the statement of activities in the year in which it accrues.(56,344)
Other postemployment employee benefits and net pension liabilities 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.(218,455)
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.1,004,231
The net revenues (expenses) of certain activities of internal service funds are reported within the
governmental activities in the statement of activities.(10,659)
Change in net position of governmental activities (Statement 2)$913,600
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, 2015
Assets:Water Utility FundSewer Utility Fund
Current assets:
Cash and cash equivalents $951,626$1,065,067
Restricted asset: cash and cash equivalents with fiscal agent - -
Receivables:
Accounts (net of allowance for uncollectibles)583,272435,259
Interest 2,2902,160
Due from other governmental units - current - -
Prepayments - 81,197
Inventory - at cost 8,011 -
Total current assets1,545,199 1,583,683
Noncurrent assets:
Capital assets:
Land 45,22336,586
Construction in progress 482,295124,833
Buildings 866,118403,659
Equipment 515,901932,135
Infrastructure 8,973,8526,154,219
Total capital assets 10,883,389 7,651,432
Less: accumulated depreciation(4,958,174)(4,584,813)
Net capital assets5,925,2153,066,619
Total noncurrent assets5,925,2153,066,619
Total assets 7,470,4144,650,302
Deferred outflows of resources:
Related to pensions 23,580 23,580
Liabilities:
Current liabilities:
Accounts payable 10,8291,386
Accrued salaries and withholdings payable7,6928,474
Due to other governmental units371,642 -
Interfund payable 131,000 -
Contracts payable 11,79210,678
Accrued interest payable 6,6822,271
Unearned revenue - -
Compensated absences payable - current1,3102,868
Bonds payable - current 170,04235,000
Total current liabilities710,989 60,677
Noncurrent liabilities:
Compensated absences payable - noncurrent16,16335,370
Bonds payable - noncurrent 830,754295,000
Net pension liability 171,438171,438
Total noncurrent liabilities1,018,355 501,808
Total liabilities 1,729,344562,485
Deferred inflows of resources:
Related to pensions 19,85719,857
Net position:
Net investments in capital assets5,474,4192,982,428
Restricted 190,61540,113
Unrestricted 79,7591,068,999
Total net position$5,744,793$4,091,540
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
$1,504,837$709,362$439,271$4,670,163$3,545,898
- - 399,251399,251 -
495,40298,2253211,612,479 -
2,5001,150508,1504,400
48,544 - 54649,090 -
- - - 81,19775,684
- - 2,985,6832,993,69453,856
2,051,283 808,737 3,825,122 9,814,024 3,679,838
- 260,6902,006,7142,349,21315,779
- 1,160,471 - 1,767,599 -
56,000 - 3,915,0625,240,8391,978,957
112,893340,692436,3802,338,001486,425
- 1,518,512 - 16,646,583 -
168,893 3,280,365 6,358,156 28,342,235 2,481,161
(125,897)(978,439)(1,275,609)(11,922,932)(1,225,014)
42,9962,301,9265,082,54716,419,3031,256,147
42,9962,301,9265,082,54716,419,3031,256,147
2,094,2793,110,6638,907,66926,233,3274,935,985
6,977 6,489 90,750 151,37651,898
258,188147201,869472,41925,048
2,7572,53636,26757,72619,683
- - 86,683458,325 -
- 34,000 - 165,000 -
- - - 22,470 -
- 4,21589,983103,151 -
- - - - 8,141
191106,10510,48481,891
- 103,288185,000493,330 -
261,136 144,196 605,907 1,782,905 134,763
2,36112975,300129,3231,009,987
- 651,6113,895,0005,672,365 -
50,72147,171659,8071,100,575288,419
53,082 698,911 4,630,107 6,902,263 1,298,406
314,218843,1075,236,0148,685,1681,433,169
5,8755,46476,424127,47743,707
42,9961,987,0271,401,79811,888,6681,256,147
- 116,389186,637533,754 -
1,738,167165,1652,097,5465,149,6362,254,860
$1,781,163$2,268,581$3,685,98117,572,058$3,511,007
988,329
$18,560,387
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, 2015
Water Utility FundSewer Utility FundRefuse Utility Fund
Operating revenues:
Charges for services$154,442$1,699,397$1,896,230
Charges for sales, net of discounts2,570,676 - -
Total operating revenues2,725,118 1,699,397 1,896,230
Operating expenses:
Cost of sales, services and goods sold1,221,185974,8221,532,417
Operating expense830,779447,858166,238
Depreciation240,377144,4963,641
Total operating expenses2,292,341 1,567,176 1,702,296
Net income (loss) from operations432,777 132,221 193,934
Nonoperating revenues (expenses):
Investment income:
Interest and dividends10,17010,66013,800
Change in fair value3,3604,0705,500
Intergovernmental - - 96,518
Miscellaneous revenues5,398 - -
Miscellaneous expense(3,158) - -
Interest and fiscal charges(26,151)(5,679) -
Total nonoperating revenues (expenses)(10,381)9,051 115,818
Net income (loss) before transfers and capital contributions422,396 141,272 309,752
Transfers in - - -
Transfers out(131,017)(131,016)(119,277)
Capital contributions - intergovernmental - - -
Total transfers and capital contributions(131,017)(131,016)(119,277)
Change in net position291,379 10,256 190,475
Net position - January 1, as previously reported5,616,7444,244,6141,639,010
Prior period adjustment(163,330)(163,330)(48,322)
Net position - January 1, as restated5,453,4144,081,2841,590,688
Net position - December 31$5,744,793 $4,091,540 $1,781,163
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
$375,663$ - $ - $4,125,732$1,262,903
- 8,399,943 - 10,970,619138,688
375,663 8,399,943 0 15,096,351 1,401,591
- 6,338,891 - 10,067,3151,593,923
439,3451,386,496 - 3,270,716 -
89,459148,207 - 626,18098,748
528,804 7,873,594 0 13,964,211 1,692,671
(153,141)526,349 0 1,132,140 (291,080)
3,660151 - 38,44124,599
910(60) - 13,7809,800
- - - 96,518 -
- - - 5,3983,118
- (3,571) - (6,729) -
(13,884)(200,124) - (245,838) -
(9,314)(203,604)0 (98,430)37,517
(162,455)322,745 0 1,033,710 (253,563)
- - - - 335,000
- (202,789) - (584,099)(60,000)
747,334 - - 747,334 -
747,334 (202,789)0 163,235 275,000
584,879 119,956 0 1,196,945 21,437
1,728,6414,194,628 - 17,423,6373,760,146
(44,939)(628,603) - (1,048,524) -
1,683,7023,566,025 - 16,375,1133,760,146
$2,268,581 $3,685,981 $0 $17,572,058 $3,781,583
$1,196,945
32,098
$1,229,043
Transfers - Net
$163,235
.
(747,334)
215,000
($369,099)
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, 2015
Water Utility FundSewer Utility Fund
Cash flows from operating activities:
Cash received from customers $2,717,640$1,658,659
Cash received from interfund goods and services provided - -
Cash paid to suppliers for goods and services(1,536,248)(1,244,286)
Cash payments to employees for services(470,118)(185,718)
Net cash flows provided by (used in) operating activities711,274 228,655
Cash flows from noncapital financing activities:
Transfers in - -
Transfers out (131,017)(131,016)
Miscellaneous revenue
Increases in compensated absences payable - -
Decreases in compensated absences payable - -
Intergovernmental - -
Interfund receivable repaid by (advanced to) other funds9,629 -
Interfund payable (repaid to) advanced by other funds(64,000) -
Net cash flows provided by (used in) noncapital financing activities(185,388)(131,016)
Cash flows from capital and related financing activities:
Acquisition of capital assets (474,047)(114,250)
Capital contribution - -
Principal payments - bonds (177,028)(35,000)
Interest and fiscal charges (26,676)(5,737)
Net cash flows provided by (used in) capital and related financing activities(677,751)(154,987)
Cash flows from investing activities:
Investment income
Interest and dividends 9,4809,900
Change in fair value 3,3604,070
Net cash flows provided by (used in) investing activities12,840 13,970
Net increase (decrease) in cash and cash equivalents(139,025)(43,378)
Total cash and cash equivalents - January 11,090,6511,108,445
Total cash and cash equivalents - December 31951,626 1,065,067
(Less) Restricted asset: cash and cash equivalents with fiscal agent - December 31 - -
Cash and cash equivalents - December 31$951,626$1,065,067
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 Fund
Total Enterprise
FundsInternal Service Funds
$1,907,682$413,352$8,312,054$15,009,387$ -
- - - - 1,401,591
(1,476,652)(322,067)(6,803,924)(11,383,177)(955,067)
(85,780)(115,731)(996,676)(1,854,023)(598,424)
345,250 (24,446)511,454 1,772,187 (151,900)
- - - - 335,000
(119,277) - (202,789)(584,099)(60,000)
- 3,118
- - - - 628,760
- - - - (575,356)
96,518 - - 96,518 -
- - - 9,629 -
- (16,000) - (80,000) -
(22,759)(16,000)(202,789)(557,952)331,522
- (1,138,093)(23,178)(1,749,568)(14,968)
- 747,334 - 747,334 -
- (104,256)(180,000)(496,284) -
- (14,016)(203,818)(250,247) -
0 (509,031)(406,996)(1,748,765)(14,968)
13,4003,41010136,29124,299
5,500910(60)13,7809,800
18,900 4,320 41 50,071 34,099
341,391 (545,157)(98,290)(484,459)198,753
1,163,4461,254,519936,8125,553,8733,347,145
1,504,837 709,362 838,522 5,069,414 3,545,898
- - (399,251)(399,251) -
$1,504,837$709,362$439,271$4,670,163$3,545,898
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, 2015
Water Utility FundSewer Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$432,777$132,221
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 240,377144,496
Miscellaneous revenues 5,398 -
Miscellaneous expense (3,158) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable19,879(17,194)
(Increase) decrease in due from other governmental units - -
(Increase) decrease in prepayments - 36
(Increase) decrease in inventory, at cost(619) -
(Increase) decrease in deferred pension outflows(23,580)(23,580)
Increase (decrease) in accounts payable(27,489)(14,904)
Increase (decrease) in accrued
salaries and withholdings payable(1,434)2,576
Increase (decrease) in contracts payable - retained percentage6,109(25,493)
Increase (decrease) in due to other governmental units36,066 -
Increase (decrease) in compensated absences payable(1,017)2,532
Increase (decrease) in deferred revenue - -
Increase (decrease) in net pension liability8,1088,108
Increase (decrease) in deferred pension inflows19,85719,857
Total adjustments 278,49796,434
Net cash flows from operating activities$711,274$228,655
Noncash capital and related financing activities:$ - $ -
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 Fund
Total Enterprise
FundsInternal Service Funds
$193,934($153,141)$526,349$1,132,140($291,080)
3,64189,459148,207626,18098,748
- - (3,571)1,827 -
- - - (3,158) -
2,639(3,926)(300)1,098 -
15,79048,1043,16167,055 -
- - - 36(13,908)
- - (108,878)(109,497)(51,898)
(6,977)(6,489)(90,750)(151,376)14,706
129,311(3,641)(66,799)16,47816,311
492(704)(6,655)(5,725)5,644
- - - (19,384) -
- - (5,511)30,555 -
(1,854)(1,804)8,5736,4307,790
- - - - 237
2,3992,23231,20452,05117,843
5,8755,46476,424127,47743,707
151,316128,695(14,895)640,047139,180
$345,250($24,446)$511,454$1,772,187($151,900)
$ - $ - $ - $ - $ -
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, 2015
Assets:
Cash and investments $28,045
Due from other governmental units 79
Total assets $28,124
Liabilities:
Accounts payable $19,284
Due to other governmental units 8,840
Total liabilities $28,124
The accompanying notes are an integral part of these financial statements.
52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015
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 municipal state aid street fund is maintained according to state statute to account for maintenance
and construction of municipal state aid street systems.
The capital equipment replacement – general government fund was established to account for the
replacement of capital assets as needed.
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
The capital improvements – PIR fund was established to account for projects that will be assessed to
the affected properties.
The capital building library fund was established to account for replacement of the library building.
The HRA (component unit) Parkview Villa North & South fund was established to account for the
revenue and expenditures of the senior housing complex.
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 municipal service center, 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
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
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
provides discounts. For 2015, liquor sales discounts were $257,032. 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:
Housing and Redevelopment Authority (component unit):
Parkview villa north & south fund
Nonmajor special revenue funds:
Cable television fund
Library fund
Community development fund
Economic Development Authority (component unit):
Economic Development Authority administration 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.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable
in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on
the government-wide financial statements.
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like
external investment pools, which are stated at amortized cost. At December 31, 2015, 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. Interfund loans are classified as “interfund receivables/payables.” 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, 2015
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, 2015
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, are 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
to certain limits. 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, 2015
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.
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 unless proceeds from the sale are committed or restricted.
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.
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 receivable or payable which offsets the movement of cash between funds. All other interfund
transactions are reported as transfers.
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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
Deferred outflows 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
one item that qualifies for reporting in this category. It is the pension related deferred outflows of resources
reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net
Position.
Deferred Inflows of resources: 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 pension related
deferred inflows of resources reported in the government-wide Statement of Net Position and the
proprietary funds Statement of Net Position. The City also has a 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 revenues from the following sources: property taxes, special assessments, due from
other governments and loans receivable.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 ($29,917,724) difference are as follows:
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 $4,559,820 difference are as follows:
Accrued interest payable ($356,229)
Other postemployment benefits payable (223,618)
Bonds payable (23,072,168)
Net Pension Liability (6,265,709)
Adjustment to fund balance - total governmental
funds - to arrive at net position of governmental activities($29,917,724)
Total capital outlay in government fund financial statements$7,017,498
Adjustments for items not capitalized(201,296)
Adjustments to the carrying value of real estate held for resale(213,447)
Depreciation expense(2,042,935)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$4,559,820
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 ($6,112,147) difference are as follows:
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 $1,004,231 difference are
as follows:
Debt issued:
General obligation bonds($7,148,863)
Principal repayments:
General obligation bonds968,716
Revenue bonds68,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.($6,112,147)
Unavailable revenue - General property taxes:
At December 31, 2014($267,687)
At December 31, 2015264,479
Unavailable revenue - Tax increment taxes:
At December 31, 2014(17,283)
At December 31, 20152,189
Unavailable revenue - Special assessments:
At December 31, 2014(2,488,491)
At December 31, 20152,430,268
Unavailable revenue - Intergovernmental revenue:
At December 31, 2014(319,244)
At December 31, 201515,000
Unavailable revenue - Sale of capital asset:
At December 31, 2014 -
At December 31, 20151,385,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$1,004,231
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015, 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, 2015 are
as follows:
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes and treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rated “A” or
better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
Carrying
Amount At
Fair Value
Investments$14,916,421
Deposits23,542,870
Cash on hand8,014
(Less) fidcuiary fund cash(28,045)
$38,439,260
Cash and investments$38,040,009
Restricted asset: Cash and investments with fiscal agent399,251
$38,439,260
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
(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, 2015 are as follows:
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.
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.
Carrying
Bank Amount At
BalancesFair Value
Demand deposits$1,847,596$1,721,190
Time deposits21,835,64621,821,680
Total$23,683,242$23,542,870
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Investments as of December 31, 2015 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, 2015, 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, 2015, 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, 2015.
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, 2015, investments in securities are held by the City’s three broker-
dealers in the City’s name, with $500,000 of those securities at each broker-dealer insured by SIPC.
Each broker-dealer has provided additional protection by providing additional insurance. This
additional insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts.
Investments in money markets are not evidenced by securities that exist in physical or book entry
form, and therefore are not subject to custodial credit risk disclosures.
Weighted
Average CarryingPercentage
MaturitiesAmount Atof Fair Value
In YearsFair ValuePer Issuer
Notes issued by U.S. government agencies:
Federal Home Loan Bank10.6$2,732,94318.3%
Federal National Mortgage Association10.63,514,88223.6%
Federal Home Loan Mortgage Corporation5.33,921,61026.3%
Federal Farm Credit Bank6.21,310,5188.8%
Money market mutual funds:
Evergreen U.S. Government FundLess than 1yr1,648,10611.0%
Western Asset Government FundLess than 1yr718,3404.8%
Other issuersLess than 1yr1,070,0227.2%
Total investments$14,916,421100.0%
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2015 are as follows:
Note 4 UNAVAILABLE REVENUES
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds were as follows:
Total
Capital2008A TaxableCapital
ImprovementGO Housing ImpImprovement
PIR FundArea Bonds FundDevelopment
Special assessments receivable$ - $1,413,067$581,588$ - $1,994,655
Loan receivable6,585,000 - - 99,050 6,684,050
Total $6,585,000$1,413,067 $581,588 $99,050$8,678,705
Major Funds
HRA (component
unit) Parkview
Villa North &
Nonmajor Funds
PropertyTaxSpecial Sale ofIntergovernmental
TaxesIncrementAssessmentsCapital AssetRevenueTotal
Major Funds:
General Fund$257,259$0$0$0$0$257,259
Municipal State Aid Street Fund - - - - 15,00015,000
Capital Improvements - PIR Funds - - 1,784,092 - - 1,784,092
HRA Parkview Villa North & South - - - 6,585,000 - 6,585,000
Nonmajor Governmental Funds:7,2202,189646,177 - - 655,586
Total unavailable revenue264,4792,1892,430,2696,585,00015,0009,296,937
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015 is as follows:
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,325,624 $0($177,375)$5,148,249
Construction in progress 1,019,899 6,175,149 (1,243,957) 5,951,091
Total capital assets not being depreciated6,345,523 6,175,149 (1,421,332) 11,099,340
Capital assets - being depreciated:
Buildings 28,567,589 29,500 (5,352,327) 23,244,762
Equipment 8,445,431 727,654 (524,132) 8,648,953
Infrastructure 30,171,790 912,449 - 31,084,239
Total capital assets being depreciated 67,184,810 1,669,603 (5,876,459) 62,977,954
Less accumulated depreciation for:
Buildings 12,791,628 638,685 (4,462,956) 8,967,357
Equipment 6,314,033 473,076 (477,362) 6,309,747
Infrastructure 15,237,593 1,008,416 - 16,246,009
Total accumulated depreciation 34,343,254 2,120,177 (4,940,318) 31,523,113
Capital assets being depreciated - net 32,841,556 (450,574) (936,141) 31,454,841
Governmental activities capital assets - net39,187,079 5,724,575 (2,357,473) 42,554,181
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 591,563 1,684,312 (508,276) 1,767,599
Total capital assets not being depreciated2,940,776 1,684,312 (508,276) 4,116,812
Capital assets - being depreciated:
Buildings 5,124,992 115,846 - 5,240,838
Equipment 2,509,940 80,224 (26,840) 2,563,324
Infrastructure 16,254,153 392,431 - 16,646,584
Total capital assets being depreciated 23,889,085 588,501 (26,840) 24,450,746
Less accumulated depreciation for:
Buildings 1,516,779 152,718 - 1,669,497
Equipment 1,741,788 127,824 (26,840) 1,842,772
Infrastructure 8,229,109 367,145 - 8,596,254
Total accumulated depreciation 11,487,676 647,687 (26,840) 12,108,523
Capital assets being depreciated - net 12,401,409 (59,186) - 12,342,223
Business-type activities capital assets - net15,342,185 1,625,126 (508,276) 16,459,035
Total capital assets - net 54,529,264 7,349,701 (2,865,749) 59,013,216
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Depreciation expense was charged to functions/programs of the primary government – governmental activities as
follows:
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Governmental activities:
General government$76,311
Public safety515,247
Public works1,093,601
Culture and recreation294,542
Community development67,022
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Municipal Service Center - Garage73,454
Total depreciation expense - capital assets held by governmental activities$2,120,177
Business-type activities:
Water $240,377
Sewer 144,496
Refuse 3,641
Storm sewer89,458
Liquor 148,207
Depreciation on capital assets held by business-type internal service activities
is charged to each function based on use:
Information systems21,508
Total depreciation expense - capital assets held by business-type activities$647,687
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2015 are as follows:
Included in these balances is an interfund loan from the Capital Equipment Replacement – General Government
Fund to the Water Fund for $131,000, and to the Storm Sewer Fund for $34,000; to finance utility infrastructure
improvements. All other interfund balances at December 31, 2015, reflect lending arrangements to cover deficit
cash balances at yearend. Substantially all such other amounts are expected to be repaid within one year.
Fund ReceivablePayable
Major Funds:
General Fund $45,200$ -
Capital Equipment Replacement General Gov't 165,000 -
Water - 131,000
Storm Sewer - 34,000
Nonmajor funds 462,384507,584
Total $672,584$672,584
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
INTERFUND TRANSFERS
Interfund transfers during the year ended December 31, 2015 are as follows:
2015 interfund transfers were primarily for the following purposes:
a) To fund debt service funds with pledged resources from the funds authorized to collect those resources.
b) To fund capital projects, equipment replacement, and information systems with certain resources from
operating budgets.
c) To fund general government functions of the General Fund which are broadly applicable to all activities of
the primary government.
Total
MunicipalCapitalCapital Capital Other
GeneralState AidImprvmts GenImp PIRBldg LibGovtlInternal
FundStreet FundGovt BldgFundFundFundsService
Transfers out:
Major funds:
Governmental:
General Fund$ - $ - $550,000$1,131$545,000$558,500$53,000$1,707,631
Capital Imprvmts PIR - 300,000 - - - 446,984 - 746,984
Capital Bldg Lib Fund - - - - - 183,790 - 183,790
Enterprise:
Water86,017 - - - - - 45,000131,017
Sewer86,017 - - - - - 45,000131,017
Refuse74,277 - - - - - 45,000119,277
Liquor107,789 - - - - 50,00045,000202,789
Nonmajor funds:
Other governmental funds63,007 - - - 2,113,399216,00067,0002,459,406
Internal service funds - - - - 25,000 - 35,00060,000
Total$417,107$300,000$550,000$1,131$2,683,399$1,455,274$335,000$5,741,911
Transfers In
Nonmajor FundsMajor Funds
Governmental
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015, 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$110,000
GO Public safety center series 2008BNone10,000,0004.30-4.55%8/6/20082/1/20388,970,000
GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/20382,505,000
GO Library series 2015ANone6,875,0002.50-3.25%3/4/20152/1/20366,875,000
Taxable GO tax increment bonds series 2009BTax increment580,0003.40-5.10%7/1/20092/1/2021410,000
Taxable GO housing imprvmt area series 2008ASpecial assessments975,0005.00-6.05%7/16/20082/1/2024680,000
GO Public Facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019250,000
GO Improvement series 2013ASpecial assessments235,0000.40-2.50%11/21/20132/1/2024210,000
GO Improvement series 2013A - RefundingSpecial assessments328,0210.40-2.50%11/21/20132/1/2020239,305
Business-type activities:
GO Public Facilities series 2009AUtility revenues325,0002.00-4.75%7/1/20092/1/2019155,000
GO Utility revenue series 2013AUtility revenues1,685,0000.40-2.50%11/21/20132/1/20241,580,000
GO Improvement series 2013A - RefundingUtility revenues291,9790.40-2.50%11/21/20132/1/2024195,695
GO Utility revenue series 2013A - RefundingUtility revenues235,0000.40-2.50%11/21/20132/1/2024155,000
Total general obligation bonds outstanding $22,335,000
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
As of December 31, 2015, 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, 2015 are as follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2016$761,670$746,507$308,330$34,799
2017927,635718,147332,36531,388
2018885,000686,396225,00027,450
2019880,000653,448230,00023,502
2020875,000620,190190,00019,758
2021895,000586,264190,00016,242
2022840,000553,033200,00012,143
2023875,000520,482205,0007,534
2024905,000486,352205,0002,562
2025725,000456,809 - -
2026-20304,085,0001,879,418 - -
2031-20355,000,0001,047,524 - -
2036-20382,595,000158,506 - -
Total$20,249,305$9,113,076$2,085,695$175,378
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$2,549,000
Business-type activities:
Public facility lease revenue series 2007BLiquor revenues5,040,0004.50-5.00%9/19/20072/1/20304,080,000
Total revenue bonds outstanding $6,629,000
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
As of December 31, 2015, 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, 2015, and for the the year then ended, is as follows:
Related BondAs PercentageRelated Bond
PledgedActivityPrincipalof RevenuePrincipalPledged
RevenueFinancedand InterestPledgedand InterestRevenue
Project-specificStreet
special assessmentsimprovements$826,55695%$1,242,307$447,364
Project-specificPrivate
special assessmentsredevelopment877,94395%96,414110,826
Project-specificPublic/Private
tax incrementredevelopment4,452,51783%286,239260,412
Water, sewer and storm-Utility system
sewer net revenuesimprovements2,261,07436%353,366991,499
Annual appropriationMunicipal store
of liquor net revenuesconstruction5,771,735100%381,155377,544
Total RemainingCurrent Year
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2016$74,000$133,688$185,000$192,942
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$2,549,000$1,429,437$4,080,000$1,691,733
Governmental ActivitiesBusiness-Type Activities
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2015 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.
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, 2015, there were no Revenue Bonds of this type outstanding.
Beginning
BalanceEndingDue Within
as RestatedAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes$12,260,000$6,875,000($675,000)$18,460,000$455,000
Unamortized premium on above - 293,651(19,788)273,863 -
General obligation bonds with other pledged revenues2,083,021 - (293,716)1,789,305306,670
Revenue bonds2,617,000 - (68,000)2,549,00074,000
Total bonds payable16,960,0217,168,651(1,056,504)23,072,168835,670
Due to Other Government - 5,200,000 - 5,200,000 -
Compensated absences1,007,424636,675(575,356)1,068,74380,156
Net pension liability6,275,9061,511,117(966,898)6,820,125 -
Postemployment benefits other than pensions191,15175,212(42,745)223,618 -
Total governmental activity long-term liabilities$24,434,502$14,591,655($2,641,503)$36,384,654$915,826
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues$2,401,979$ - ($316,284)$2,085,695$308,330
Revenue bonds 4,260,000 - (180,000)$4,080,000185,000
Total bonds payable 6,661,979 - (496,284)6,165,695493,330
Compensated absences 156,637121,793(115,488)162,94212,219
Net pension liability 1,211,832231,341(171,184)1,271,989 -
Total business-type activity long-term liabilities$8,030,448$353,134($782,956)$7,600,626$505,549
75
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 9 FUND EQUITY
A. CLASSIFICATIONS
At December 31, 2015, 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, 2015. The City will finance these deficits
through TIF collections and other revenues in future years.
MunicipalCap Eqp Capital HRA (component
GeneralState AidReplacementBuildingunit) ParkviewNonmajor
FundStreetGen GovtPIRLibraryVilla No & SoGov'tTotal
2015 Fund Balance:
Nonspendable:
Prepaid items$94,848$ - $ - $ - $ - $ - $2,724$97,572
Total nonspendable94,848 - - - - - 2,724 97,572
Restricted for:
Debt service - - - - 3,773,678 - 1,506,769 5,280,447
Streets - 1,089,787 - - - - - 1,089,787
Tax Increment - - - - - - 1,863,077 1,863,077
Police Forfeiture - - - - - - 46,631 46,631
Grant sponsored Rec Programs - - - - - - 171,763 171,763
Capital Improvements/Replacement - - - - - - 349,351 349,351
Public Housing - - - - - 1,020,251 - 1,020,251
Total restricted - 1,089,787 - - 3,773,678 1,020,251 3,937,591 9,821,307
Committed for:
Downtown Parking Maint - - - - - - 25,000 25,000
Capital Improvements/Replacement - - 4,237,895 561,514 2,267,156 - 3,867,448 10,934,013
Cable TV Operations - - - - - - 523,650 523,650
Library Operations - - - - - - 504,163 504,163
Redevelopment - - - - - - 915,339 915,339
Total committed - - 4,237,895 561,514 2,267,156 - 5,835,600 12,902,165
Assigned for:
2016 Appropriation 44,000 - - - - - - 44,000
Unassigned:$6,873,054$ - $ - $ - $ - $ - ($92,040)$6,781,014
Nonmajor Funds:
Special Revenue Fund
Anoka County Community Dev Program($24,102)
Debt Service Funds:
TIF Scattered Site($67,938)
($92,040)
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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, 2015, both funds have met this goal.
Note 10 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a) of the
Internal Revenue Code.
General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General Employees Retirement
Fund (GERF). 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.
Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the
PEPFF also covers police officers and firefighters belonging to local relief associations that elected to
merge with and transfer assets and administration to PERA.
Benefits provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute
and can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio
of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5%
increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1%
increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and apply to
active plan participants. 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.
77
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
GERF Benefits
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. Two methods are used to compute benefits for PERA's
Coordinated and Basic Plan members. The retiring member receives the higher of a step-rate benefit
accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual
rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7%
for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary
for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is
2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of
service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service
equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement
age is the age for unreduced Social Security benefits capped at 66.
PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated
basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF
members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after
twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service.
For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of
service equal at least 90.
B. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the state legislature.
GERF Contributions
Coordinated Plan members were required to contribute 6.50% of their annual covered salary in calendar
year 2015. The City of Columbia Heights was required to contribute 7.50% for Coordinated Plan
members in calendar year 2015. The City of Columbia Heights’ contributions to the GERF for the year
ended December 31, 2015, were $388,736. The City of Columbia Heights’ contributions were equal to the
required contributions as set by state statute.
PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015. The
City of Columbia Heights was required to contribute 16.20% of pay for PEPFF members in calendar year
2015. The City of Columbia Heights’ regular contributions to the PEPFF for the year ended December 31,
2015, were $478,016 and the city paid an additional $3,994 in miscellaneous contributions. The City of
Columbia Heights’ contributions were equal to the required contributions as set by state statute.
C. PENSION COSTS
GERF Pension Costs
At December 31, 2015, the City of Columbia Heights reported a liability of $4,524,339 for its proportionate
share of the GERF’s net pension liability. The net pension liability was measured as of June 30, 2015, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City of Columbia Heights’ proportion of the net pension liability was based
on the City of Columbia Heights’ contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
contributions received from all of PERA’s participating employers. At June 30, 2015, the City of
Columbia Heights’ proportion share was 0.0873 % which was a decrease of 0.0084 % from its proportion
measured as of June 30, 2014.
For the year ended December 31, 2015, the City of Columbia Heights recognized pension expense of
$504,469 for its proportionate share of the GERF’s pension expense.
At December 31, 2015, the City of Columbia Heights reported its proportionate share of the GERF’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
$193,985 reported as deferred outflows of resources related to pensions resulting from City contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year
ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
PEPFF Pension Costs
At December 31, 2015, the City of Columbia Heights reported a liability of $3,567,775 for its proportionate
share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2015, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates from July
Deferred
Outflows
of
Resources
Deferred
Inflow of
Resources
Differences between expected and
actual economic experience-$ 228,104$
Changes in actuarial assuptions- -
Differences between projected and
actual investment earnings428,298 -
Changes in proportions- 295,942
Contributions paid to PERA subsequent
to the mesurment date193,985 -
Total622,283$ 524,046$
Year endedPension Expense
December 31:Amount
2016($67,607)
2017(67,607)
2018(67,608)
2019107,074
2020-
Thereafter-
79
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA’s
participating employers. At June 30, 2015, the City’s proportion was 0.314 % which was a decrease of
0.001 % from its proportion measured as of June 30, 2014.
For the year ended December 31, 2015, the City of Columbia Heights recognized pension expense of
$614,337 for its proportionate share of the PEPFF’s pension expense. The City also recognized $28,260
for the year ended December 31, 2015, as revenue for its proportionate share of the State of Minnesota’s
on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
At December 31, 2015, the City of Columbia Heights reported its proportionate share of the PEPFF’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
$246,497 reported as deferred outflows of resources related to pensions resulting from the City of
Columbia Heights’ contributions subsequent to the measurement date will be recognized as a reduction of
the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Deferred
Outflows of
Resources
Deferred
Inflow of
Resources
Differences between expected and
actual economic experience$ - $578,576
Changes in actuarial assumptions - -
Differences between projected and
actual investment earnings621,626 -
Changes in proportions - 7,200
Contributions paid to PERA subsequent
to the measurement date246,497 -
Total$868,123$585,776
Year endedPension Expense
December 31:Amount
2016$38,252
201738,252
201838,251
201938,251
2020(117,156)
Thereafter-
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
D. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2015, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.75% per year
Active Member Payroll Growth 3.50% per year
Investment Rate of Return 7.90%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight
adjustments. Cost of living benefit increases for retirees are assumed to be: 1% effective every January 1st
until 2034, then 2.5% for GERF and PEPFF.
Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial
experience studies. The experience study in the GERF was for the period July 1, 2004, through June 30,
2008, with an update of economic assumptions in 2014. The experience study for PEPFF was for the
period July 1, 2004, through June 30, 2009.
There were no changes in actuarial assumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9%. The State Board of Investment,
which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term
expected rate of return on a regular basis using a building-block method in which best-estimate ranges of
expected future rates of return are developed for each major asset class. These ranges are combined to
produce an expected long-term rate of return by weighting the expected future rates of return by the target
asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
E. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the rate
specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Asset ClassTarget Allocation
Long-Term Expected
Real Rate of Return
Domestic Stocks45%5.50%
International Stocks15%6.00%
Bonds18%1.45%
Alternative Assets20%6.40%
Cash2%0.50%
81
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
F. PENSION LIABILITY SENSITIVITY
The following presents the City of Columbia Heights’ proportionate share of the net pension liability for all
plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as
what the City’s proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
G. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive #200,
St Paul, Minnesota, 55103-2088; or by calling (651)296-7460 or (800)652-9026.
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 2015, state aid was contributed to the plan. This state aid revenue and the related contribution
expense/expenditure of $96,681 are recognized in the accompanying financial statements for the year ended
December 31, 2015.
1% Decrease in 1% Increase in
Discount Rate (6.9%)Discount Rate (7.9%)Discount Rate (8.9%)
GERF $7,113,869 $4,524,339 $2,385,785
PEPFF 6,953,630 3,567,778 770,468
City Proportionate Share of NPL
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
Employer and employee contributions are combined and used to purchase shares in one or more of the seven
accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of
employer contributions and twenty-five hundredths of 1% (.0025) of the assets in each member's account
annually.
Total contributions made by the City of Columbia Heights for the last three fiscal years were:
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 2015, 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.
Required Rate for
Employees and
For the Year Ended:EmployeeEmployerEmployeeEmployerEmployers
December 31, 2015$1,482$1,4825%5%5%
December 31, 20141,860 1,860 5%5%5%
December 31, 20131,860 1,860 5%5%5%
Contribution AmountPercentage of Covered Payroll
83
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
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, 2015
Annual required contribution $79,088
Interest on net OPEB obligation 5,735
Adjustment to annual required contribution (9,611)
Annual OPEB cost 75,212
Contributions made by City (42,745)
Increase in net OPEB obligation 32,467
Net OPEB obligation-beginning of year 191,151
Net OPEB obligation-end of year $223,618
Comparative OPEB information for the curent and three prior years includes the following:
Percentage of
Year EndedAnnual OPEBAnnual OPEBNet OPEB
December 31CostCost ContributedObligation
2012$77,34040%$105,492
201376,46739%152,154
201476,00349%191,151
201575,21257%223,618
84
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
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
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%
85
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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.
E. CONTRACTUAL COMMITMENTS
PROPERTY SALE
On September 24, 2015, the Housing and Redevelopment Authority (HRA) finalized the sale of the 150
unit senior apartment facility (Parkview Villa North and South) to Aeon, a regional non-profit housing
entity. The terms of the sale included a 30 year $6,585,000 long-term note receivable from Aeon, secured
by an interest in the property. This note is included in the amount reported in these financial statements for
loans receivable. Once the note is collected, the HRA will remit $5,200,000 to U.S. Department of
Housing and Urban Development (HUD), for the dissolution and conversion of the Parkview Villa North
portion of the facility as a Public Housing Agency project.
86
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
SPECIAL ITEM
In conjunction with the dissolution of the PHA the HRA must remit unspent HUD operating grant. As of
December 31, 2015 the balance was $927,142.
CONSTRUCTION
The City has entered into several contractual commitments for construction projects that are in process at
yearend. At December 31, 2015, the City’s obligation for such projects was approximately $6,379,995.
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 15 CHANGE IN ACCOUNTING PRINCIPLE
During 2015, the City implemented several new accounting pronouncements issued by the Governmental
Accounting Standards Board (GASB), including Statement 68, Accounting and Financial Reporting for Pensions –
an Amendment of GASB Statement No. 27 and Statement No. 71, Pension Translation for Contributions Made
Subsequent to the Measurement Date – an amendment of GASB Statement No.68, for the year ended December 31,
2015. These standards required a retroactive implementation which resulted in the restatement of net position as of
December 31, 2014. Changes related to these standards are reflected in the financial statements and schedules and
related disclosures are included in Note 10.
TIFDistrict ExpendituresInterestExpendituresInterest
District Ends Developer ReimbursedPaidAvailableAvailable
R82027Crestview ONDC1 $ - $27,642$732,801$487,359
R82027Col Hts Tran Block - 10,330175,089 60,416
K22019Barnick - - 40,672 -
K22019Miske 9,584480 - -
T62031Columbia Heights Leased
Housing Associates I, LLP - 116,1516,650,0002,895,812
Current YearContingent on Future Tax Increment
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
As a result the restatement of beginning balances, the following schedule reconciles the previously reported
December 31, 2014 balances to the December 31, 2015 financial statements:
Note 16 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were
not implemented for these financial statements:
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.
Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The
provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 – except those provisions
that address employers and governmental nonemployer contributing entities for pensions that are not within the
scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016.
Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The
provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.
Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The
provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
Statement No. 76 The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments. The provisions in Statement 76 are effective for reporting periods beginning after June 15, 2015.
Net Position
January 1, 2015Net Position
as PreviouslyPrior PeriodJanuary 1, 2015
FundReportedRestatement (1)as Restated
Governmental activities$52,959,104($6,275,906)$46,683,198
Business-type activities
Water Utility$5,616,744($163,330)$5,453,414
Sewer Utility4,244,614 (163,330) 4,081,284
Refuse Utility1,639,010 (48,322) 1,590,688
Storm Sewer Utility1,728,641 (44,941) 1,683,700
Liquor4,194,628 (628,603) 3,566,025
Internal Service1,119,539 (163,306) 956,233
Total business-type activities$18,543,176($1,211,832)$17,331,344
(1) To record the beginning net position liability and deferred outflows of resources at December 31, 2014.
December 31, 2015
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Statement No. 77 Tax Abatement Disclosures. The provisions of this Statement are effective for reporting
periods beginning after December 31, 2015.
Statement No. 78 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The
provisions of this Statement are effective for reporting periods beginning after December 15, 2015.
Statement No. 79 Certain External Investment Pools and Pool Participants. The provisions of this Statement
are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio
quality, custodial credit risk, and shadow pricing which are effective for reporting periods beginning after
December 15, 2015.
Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement are
effective for reporting periods beginning after June 15, 2016.
Statement No. 81 Irrevocable Split-Interest Agreements. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2016
The effect these standards may have on future financial statements is not determinable at this time, but it is expected
that Statement No. 75 will have a material impact.
89
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90
REQUIRED SUPPLEMENTARY INFORMATION
91
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, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget2014
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$8,673,000$8,673,000$8,781,533$108,533$8,551,642
Licenses and permits199,000199,000213,40814,408199,108
Intergovernmental1,619,5411,643,9051,666,88922,9841,558,816
Charges for services600,500626,110592,599(33,511)629,632
Fines and forfeitures126,000126,00096,551(29,449)123,633
Investment income:
Interest and dividends70,00070,00072,9482,94884,643
Change in fair value - - 30,33930,339238,924
Other revenues13,00021,95023,9502,00013,617
Total revenues11,301,041 11,359,965 11,478,217 118,252 11,400,015
Expenditures:
General government:
Council149,893149,893137,17612,717137,694
Manager435,980435,980430,9824,998416,358
Clerk52,61452,61450,3462,26891,801
Legal186,500186,500166,58919,911167,182
Finance803,000803,000800,8942,106771,577
Assessing123,839123,839122,7921,047124,571
General government buildings158,000158,000132,55625,444152,680
Contingencies55,00055,00040,37614,62419,689
Capital outlay20,00020,000 - 20,000 -
Total general government1,984,826 1,984,826 1,881,711 103,115 1,881,552
Public safety:
Police4,065,1794,100,1953,983,332116,8633,788,095
Fire1,463,0001,486,9071,509,576(22,669)1,455,204
Capital outlay - - 1,557(1,557)4,073
Total public safety5,528,179 5,587,102 5,494,465 92,637 5,247,372
Public works:
Engineering364,296364,296307,92656,370280,162
Maintenance1,283,5301,283,5301,226,96556,5651,194,548
Capital outlay - - 95,188(95,188)62,896
Total public works1,647,826 1,647,826 1,630,079 17,747 1,537,606
Other Departments:
Parks and recreation1,638,7051,638,7051,483,765154,9401,463,093
Capital outlay36,36236,36259,590(23,228) -
Total recreation1,675,067 1,675,067 1,543,355 131,712 1,463,093
Total expenditures10,835,898 10,894,821 10,549,610 345,211 10,129,623
Revenues over (under) expenditures465,143465,144928,607463,4631,270,392
2015
92
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, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget2014
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Other financing sources (uses):
Transfers in$417,106$417,106$417,106$ - $428,651
Transfers out(795,500)(1,706,500)(1,707,631)(1,131)(722,500)
Total other financing sources (uses)(378,394)(1,289,394)(1,290,525)(1,131)(293,849)
Net change in fund balance$86,749 ($824,250)(361,918)$462,332 976,543
Fund balance - January 17,373,8206,397,277
Fund balance - December 31$7,011,902 $7,373,820
2015
93
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - HRA (COMPONENT UNIT)
PARKVIEW VILLA NORTH & SOUTH FUND 203 & 213
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget-2014
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Intergovernmental revenue$100,000$100,000$161,065$61,065$299,558
Rents670,994670,994492,304(178,690)653,019
Investment income:
Interest and dividends - - 11,11711,11712,098
Change in fair value - - 3,4003,40027,400
Other revenues13,52513,5258,711(4,814)11,551
Total revenues784,519784,519676,597(107,922)1,003,626
Expenditures:
Personal services19,00019,00027,750(8,750)37,000
Supplies39,05539,05517,24321,81239,421
Other services and charges640,620640,620526,265114,355681,003
Capital outlay - - - - 121,583
Total expenditures698,675698,675571,258127,417879,007
Revenues over (under) expenditures$85,844$85,844105,339$19,495124,619
Fund balance - January 11,842,0551,717,436
Fund balance - December 31$1,947,394$1,842,055
2015
94
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN
For The Year Ended December 31, 2015
Actuarial
Accrued UAAL as a
ActuarialActuarialLiability (AAL)UnfundedPercentage
ValuationValue of - ProjectedAALFunded Coveredof Covered
DateAssetsUnit Credit(UAAL)RatioPayrollPayroll
1/1/2008$ - $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%
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2015
Proportionate Share
Proportionateof the Net PensionPlan Fiduciary
ProportionShare (Amount)Liability as aNet Position as
(Percentage) ofof the NetCovered-Percentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionEmployeeCovered-Employeeof the Total
DateEndingLiabilityLiability (a)Payroll (b)Payroll (a/b)Pension Liability
June 30, 2015December 31, 20150.0873%$4,524,339$5,065,17389.3%78.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2015
StatutorilyContributions inContributionCovered-Contributions as a
Required Relation to theDeficiencyEmployeePercentage of
Fiscal YearContributionStatutorily Required(Excess)PayrollCovered-Employee
Ending(a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$388,736$388,736$0$5,183,1477.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
97
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2015
Proportionate Share
Proportionateof the Net PensionPlan Fiduciary
ProportionShare (Amount)Liability as aNet Position as
(Percentage) ofof the NetCovered-Percentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionEmployeeCovered-Employeeof the Total
DateEndingLiabilityLiability (a)Payroll (b)Payroll (a/b)Pension Liability
June 30, 2015December 31, 20150.0920%$3,567,778$2,816,543126.7%86.6%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
98
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2015
StatutorilyContributions inContributionCovered-Contributions as a
Required Relation to theDeficiencyEmployeePercentage of
Fiscal YearContributionStatutorily Required(Excess)PayrollCovered-Employee
Ending(a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$478,016$478,016$0$2,950,71616.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
99
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
NOTES TO RSI
December 31, 2015
Note A LEGAL COMPLIANCE – 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
Planning and Inspections Fund
Economic Development Authority (Component Unit):
Economic Development Authority Administration Fund
Note B PENSION INFORMATION
PERA – General Employees Retirement Fund
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes. Details can be obtained from the financial reports of PERA.
PERA – Public Employees Police and Fire Fund
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes. Details can be obtained from the financial reports of PERA.
100
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
101
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102
NONMAJOR GOVERNMENTAL FUNDS
103
- This page intentionally left blank -
104
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.)
105
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 17
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
Total
Nonmajor
Special DebtCapital Governmental
AssetsRevenueServiceProjectFunds
Cash and investments$2,560,099$2,795,546$3,299,673$8,655,318
Receivables:
Accounts51,161 - - 51,161
Special assessments - 646,175 - 646,175
Taxes11,03615,946 - 26,982
Loans - - 99,05099,050
Interest3,7001,8206,60012,120
Due from other governmental units342,085 - 18,723360,808
Interfund receivable46,15575,389340,840462,384
Prepayments2,724 - - 2,724
Real estate held for resale66,152517,726109,211693,089
Total assets$3,083,112$4,052,602$3,874,097$11,009,811
Liabilities and Fund Balance
Liabilities:
Accounts payable$22,849$22,784$3,614$49,247
Accrued salaries and withholdings payable36,147 - - 36,147
Contracts payable8,900 - - 8,900
Due to other governmental units11,835 - - 11,835
Interfund payable428,04079,544 - 507,584
Unearned revenue53,602 - - 53,602
Deposits - - 3,0353,035
Total liabilities561,373102,3286,649670,350
Deferred inflows of resources:
Unavailable revenue7,220648,366 - 655,586
Total deferred inflows of resources7,220648,3660655,586
Fund balance:
Nonspendable2,724 - - 2,724
Restricted567,7453,369,846 - 3,937,591
Committed1,968,152 - 3,867,4485,835,600
Unassigned(24,102)(67,938) - (92,040)
Total fund balance2,514,5193,301,9083,867,4489,683,875
Total liabilities, deferred inflows
of resources, and fund balance$3,083,112$4,052,602$3,874,097$11,009,811
106
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 18
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2015
Total
Nonmajor
Special Debt CapitalGovernmental
Revenue Service Project Funds
Revenues:
Taxes $1,064,456 $669,702$ - $1,734,158
Tax increment collections - 506,733 - 506,733
Special assessments - 110,655 - 110,655
Licenses and permits 413,139 - - 413,139
Intergovernmental 654,189 300,000250,0001,204,189
Charges for services 329,073 - - 329,073
Fines and forfeitures 27,516 - - 27,516
Investment income:
Interest and dividends 20,400 8,260 36,600 65,260
Change in fair value 8,100 1,450 14,500 24,050
Other revenues 41,906 - 112,246154,152
Total revenues 2,558,779 1,596,800 413,346 4,568,925
Expenditures:
Current:
General government 45,636 - 22,715 68,351
Public safety 19,135 - 36,277 55,412
Public works - - 1,183 1,183
Culture and recreation 804,745 - 293,4831,098,228
Community development 500,626 27,957 36,379564,962
Capital outlay:
Public works - - 731,673731,673
Community development 349,601 146,118 11,753507,472
Debt service:
Principal retirement - 1,036,716 - 1,036,716
Interest and fiscal charges - 826,921 - 826,921
Developer incentives - 164,188 - 164,188
Total expenditures 1,719,743 2,201,900 1,133,463 5,055,106
Revenues over (under) expenditures 839,036 (605,100)(720,117)(486,181)
Other financing sources (uses):
Transfers in - 1,082,774372,5001,455,274
Transfers out (1,481,324)(216,000)(762,082)(2,459,406)
Total other financing sources (uses)(1,481,324)866,774 (389,582)(1,004,132)
Net change in fund balance (642,288)261,674 (1,109,699)(1,490,313)
Fund balance - January 1 3,156,8073,040,2344,977,14711,174,188
Fund balance - December 31 $2,514,519$3,301,908$3,867,448$9,683,875
107
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.
Public Safety Grants Fund 272 – established to account for revenues and expenditures of various
grants for public safety 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.
Planning and Inspections 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.
108
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.
109
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2015
Cable
Television Fund
225
Police
Forfeiture Fund
265
Public Safety
Grants Fund
272
Library Fund
240
Assets
Cash and investments$474,879$63,570$65$543,762
Receivables:
Accounts51,161 - - -
Taxes - - - -
Interest800 - - 500
Due from other governmental units - - 49,945 -
Interfund receivable - - - -
Prepayments - - - 2,724
Real estate held for resale - - - -
Total assets$526,840 $63,570 $50,010 $546,986
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$3,190$ - $ - $10,981
Accrued salaries and withholdings payable - - 4,81017,283
Contracts payable - - - -
Due to other governmental units - - - 11,835
Interfund payable - - 45,200 -
Unearned revenue - 16,939 - -
Total liabilities3,19016,93950,01040,099
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources 0000
Fund balance:
Nonspendable - - - 2,724
Restricted - 46,631 - -
Committed523,650 - - 504,163
Unassigned - - - -
Total fund balance 523,65046,6310506,887
Total liabilities, deferred inflows
of resources, and fund balance$526,840 $63,570 $50,010 $546,986
110
Statement 19
After-School
Programs Fund
261
Contributed
Projects -
Recreation -
Fund 881
Contributed
Projects -
Other - Fund
883
Special
Projects Fund
226
Planning and
Inspections
Fund 201
Anoka County
Comm Dev
Programs
Fund 202
EDA
Administration
Fund 204
(Component
Unit)
Total
Nonmajor
Special
Revenue
Funds
$174,671$151,304$202,905$244,732$335,872$446$367,893$2,560,099
- - - - - - - 51,161
- - - - - - 11,03611,036
300300400400400 - 6003,700
- - - - - 292,140 - 342,085
- - - - - - 46,15546,155
- - - - - - - 2,724
- - - - - 66,152 - 66,152
$174,971 $151,604 $203,305 $245,132 $336,272 $358,738 $425,684 $3,083,112
$2,533$2,340$3,218$ - $551$ - $36$22,849
675 - - - 8,982 - 4,39736,147
- - - 8,900 - - - 8,900
- - - - - - - 11,835
- - - - - 382,840 - 428,040
- - - 36,663 - - - 53,602
3,2082,3403,21845,5639,533382,8404,433561,373
- - - - - - 7,2207,220
0000007,2207,220
- - - - - - - 2,724
171,763149,264200,087 - - - - 567,745
- - - 199,569326,739 - 414,0311,968,152
- - - - - (24,102) - (24,102)
171,763149,264200,087199,569326,739(24,102)414,0312,514,519
$174,971 $151,604 $203,305 $245,132 $336,272 $358,738 $425,684 $3,083,112
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2015
3
Cable
Television
Fund 225
Police
Forfeiture Fund
265
Public Safety
Grants Fund
272
Library Fund
240
Revenues:
Taxes$ - $ - $ - $804,389
Licenses and permits - - - -
Intergovernmental - - 49,945 -
Fees/program revenues203,357 - - 10,510
Rents - - - -
Fines and forfeitures - 14,398 - 13,118
Investment income:
Interest and dividends4,400 - - 3,000
Change in fair value1,800 - - 1,200
Other revenues:
Contributions - - - -
Miscellaneous22,500 - - -
Total revenues232,05714,39849,945832,217
Expenditures:
Personal services2,699 - 49,945528,587
Supplies4651,344 - 92,734
Other services and charges42,472 - - 83,088
Capital outlay - - - -
Total expenditures45,6361,34449,945704,409
Revenues over (under) expenditures186,42113,0540127,808
Other financing sources (uses):
Transfers out(367,614) - - (34,881)
Total other financing sources (uses)(367,614)00(34,881)
Net change in fund balance(181,193)13,054092,927
Fund balance - January 1704,84333,577 - 413,960
Fund balance - December 31$523,650 $46,631 $0 $506,887
112
Statement 20
After-School
Programs
Fund 261
Contributed
Projects -
Recreation -
Fund 881
Contributed
Projects -
Other - Fund
883
Special
Projects Fund
226
Planning and
Inspections
Fund 201
Anoka County
Comm Dev
Programs
Fund 202
EDA
Administration
Fund 204
(Component
Unit)
Total
Nonmajor
Special
Revenue
Funds
$ - $ - $ - $ - $ - $ - $260,067$1,064,456
- - - - 413,139 - - 413,139
- - - - - 604,244 - 654,189
18,911 - - 9,893 - - - 242,671
- - - 86,402 - - - 86,402
- - - - - - - 27,516
1,9001,5002,1002,1002,1002003,10020,400
8006008008008001001,2008,100
- 18,215207 - - - - 18,422
- - - - 984 - - 23,484
21,61120,3153,10799,195417,023604,544264,3672,558,779
30,704 - - - 258,992 - 176,3731,047,300
3,11616,93612,054 - 3,863 - 1,079131,591
16,5718553919,34715,991 - 12,888191,251
- - - - - 349,601 - 349,601
50,39117,79112,09319,347278,846349,601190,3401,719,743
(28,780)2,524(8,986)79,848138,177254,94374,027839,036
- - - (500,000)(13,756)(551,317)(13,756)(1,481,324)
000(500,000)(13,756)(551,317)(13,756)(1,481,324)
(28,780)2,524(8,986)(420,152)124,421(296,374)60,271(642,288)
200,543146,740209,073619,721202,318272,272353,7603,156,807
$171,763 $149,264 $200,087 $199,569 $326,739 ($24,102)$414,031 $2,514,519
113
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget-2014
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Franchise fees$188,000$188,000$203,357$15,357$191,278
Investment income:
Interest and dividends - - 4,4004,4007,900
Change in fair value - - 1,8001,80022,600
Other revenues:
Miscellaneous - 22,50022,500 - -
Total revenues188,000210,500232,05721,557221,778
Expenditures:
Personal services5,5285,5282,6992,8291,950
Supplies6006004651351,989
Other services and charges32,71355,21342,47212,74123,822
Total expenditures38,84161,34145,63615,70527,761
Revenues over expenditures149,159149,159186,42137,262194,017
Other financing sources (uses):
Transfers out(67,614)(367,614)(367,614) - (67,636)
Net change in fund balance$81,545 ($218,455)(181,193)$37,262 126,381
Fund balance - January 1704,843578,462
Fund balance - December 31$523,650 $704,843
2015
114
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 22
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Forfeitures $14,398$2,479
Expenditures:
Supplies 1,3442,026
Other services and charges - 627
Total expenditures 1,3442,653
Revenues over expenditures13,054 (174)
Fund balance - January 133,57733,751
Fund balance - December 31$46,631 $33,577
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PUBLIC SAFETY GRANTS FUND 272 Statement 23
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Intergovernmental$49,945$ -
Total revenues 49,945 0
Expenditures:
Personal services 49,945 -
Total expenditures49,9450
Revenues over (under) expenditures0 0
Other financing sources (uses):
Transfers out - -
Net change in fund balance0 0
Fund balance (deficit) - January 1 - -
Fund balance (deficit) - December 31$0$0
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 24
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget-2014
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$804,389$804,389$804,389$ - $784,770
Charges for services10,23210,23210,5102789,679
Fines14,75014,75013,118(1,632)14,459
Investment income:
Interest and dividends4,6004,6003,000(1,600)7,400
Change in fair value - - 1,2001,20020,100
Total revenues833,971 833,971 832,217 (1,754)836,408
Expenditures:
Personal services575,253575,253528,58746,666559,897
Supplies111,675111,67592,73418,94191,565
Other services and charges112,162112,16283,08829,07458,856
Total expenditures799,090 799,090 704,409 94,681 710,318
Revenues over expenditures34,881 34,881 127,808 92,927 126,090
Other financing sources (uses):
Transfers out(34,881)(34,881)(34,881) - (32,679)
Net change in fund balance$0 $0 92,927 $92,927 93,411
Fund balance - January 1413,960320,549
Fund balance - December 31$506,887 $413,960
2015
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - AFTER SCHOOL PROGRAMS FUND 261 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Intergovernmental $ - $31,521
Program revenue 18,91118,147
Investment income:
Interest and dividends1,9002,500
Change in fair value 8007,400
Total revenues21,61159,568
Expenditures:
Personal services 30,70428,124
Supplies 3,1166,167
Other services and charges 16,57116,709
Total expenditures 50,39151,000
Revenues over expenditures (28,780)8,568
Fund balance - January 1 200,543191,975
Fund balance - December 31$171,763 $200,543
118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS FUND 881 Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Investment income:
Interest and dividends$1,500$1,700
Change in fair value 6004,900
Other revenue:
Contributions 18,21527,335
Total revenues20,31533,935
Expenditures:
Supplies 16,93618,159
Other services and charges855480
Total expenditures17,79118,639
Revenues over (under) expenditures2,52415,296
Fund balance - January 1146,740131,444
Fund balance - December 31$149,264 $146,740
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Investment income:
Interest and dividends$2,100$2,700
Change in fair value 8007,900
Contributions 2075,033
Total revenues3,10715,633
Expenditures:
Supplies 12,0547,536
Other services and charges392,507
Total expenditures12,093 10,043
Revenues over (under) expenditures(8,986)5,590
Fund balance - January 1209,073203,483
Fund balance - December 31$200,087 $209,073
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Fees/program revenue $9,893$19,120
Rents 86,40282,984
Investment income:
Interest and dividends 2,1008,000
Change in fair value 80023,000
Other - 8,000
Total revenues99,195141,104
Expenditures:
Other services and charges19,34747,749
Revenues over expenditures79,84893,355
Other financing sources (uses):
Transfers out (500,000) -
Total other financing sources (uses)(500,000)0
Net change in fund balance(420,152)93,355
Fund balance - January 1 619,721526,366
Fund balance - December 31$199,569 $619,721
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PLANNING AND INSPECTIONS FUND 201 Statement 29
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget-2014
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Licenses and permits$205,900$205,900$413,139$207,239$215,924
Intergovernmental - - - - 60
Investment income:
Interest and dividends - - 2,1002,1002,400
Change in fair value - - 8008007,300
Miscellaneous300300984684390
Total revenues206,200 206,200 417,023 210,823 226,074
Expenditures:
Personal services239,657239,657258,992(19,335)215,006
Supplies1,8001,8003,863(2,063)2,578
Other services and charges17,53017,53015,9911,53915,476
Total expenditures258,987 258,987 278,846 (19,859)233,060
Revenues over (under) expenditures(52,787)(52,787)138,177 190,964 (6,986)
Other financing sources (uses):
Transfers out(13,756)(13,756)(13,756) - (13,659)
Net change in fund balance($66,543)($66,543)124,421 $190,964 (20,645)
Fund balance - January 1202,318222,963
Fund balance - December 31$326,739 $202,318
2015
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY COMM DEV PROGRAMS FUND 202 Statement 30
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2015
With Comparative Amounts For The Year Ended December 31, 2014
20152014
Revenues:
Intergovernmental$604,244$123,215
Total revenues604,244123,215
Expenditures:
Capital outlay 349,60161,021
Total expenditures349,60161,021
Revenues over (under) expenditures254,64362,194
Other financing sources (uses):
Transfers out (551,317) -
Total other financing sources (uses)(551,317)0
Net change in fund balance(296,674)62,194
Fund balance - January 1272,272210,078
Fund balance - December 31($24,402)$272,272
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 31
BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204
(COMPONENT UNIT)
For The Year Ended December 31, 2015
With Comparative Actual Amounts For The Year Ended December 31, 2014
Variance with
Budgeted AmountsFinal Budget-2014
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$260,578$260,578$260,067($511)$266,778
Fees/program revenues - - - - 30
Investment income:
Interest and dividends - - 3,1003,1004,098
Change in fair value - - 1,2001,2007,300
Total revenues260,578260,578264,3673,789278,206
Expenditures:
Personal services196,455196,455176,37320,082154,803
Other services and charges19,93919,93912,8887,05121,952
Supplies6256251,079(454)4,037
Capital outlay - - - - -
Total expenditures217,019217,019190,34026,679180,792
Revenues over (under) expenditures43,55943,55974,02730,46897,414
Other financing sources (uses):
Transfers out(13,756)(13,756)(13,756) - (13,658)
Net change in fund balance$29,803$29,80360,271$30,46883,756
Fund balance - January 1353,760270,004
Fund balance - December 31$414,031 $353,760
2015
124
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.
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2015
G.O. Street
Rehabilitation
Bonds 2007 Fund
341
2008A Taxable GO
Housing
Improvement Area
Bonds Fund 315
G.O. Public Safety
Center Bonds
2008B Fund 343
G.O. Public
Facilities Bonds
2009A Fund 344
G.O. Improvement /
Revenue Bonds
2013A Fund 345
Assets
Cash and investments$123,442$207,284$461,611$256,643$346,855
Receivables:
Taxes1,831 - 4,6773,205 -
Assessments - 646,175 - - -
Interest401005060130
Interfund receivable - - - - -
Real estate for resale - - - - -
Total assets$125,313$853,559$466,338$259,908$346,985
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable$ - $ - $ - $ - $ -
Interfund payable - - - - -
Total liabilities 00000
Deferred inflows of resources:
Unavailable revenue - 646,176 - - -
Total deferred inflows of resources0646,176000
Fund balance:
Restricted125,313207,383466,338259,908346,985
Unassigned - - - - -
Total fund balance125,313207,383466,338259,908346,985
Total liabilities, deferred inflows
of resources, and fund balance$125,313$853,559$466,338$259,908$346,985
.
126
Statement 32
GO Library Bonds
2015A Fund 346
Tax Increment
Bonds Fund 376
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
$100,762$192,883$83,384$76,486$355,435$315,490$268,158$7,113$2,795,546
- - 332 - 6294,934 - 33815,946
- - - - - - - - 646,175
80300100100230500130 - 1,820
- 75,389 - - - - - - 75,389
- 259,572 - - 258,154 - - - 517,726
$100,842$528,144$83,816$76,586$614,448$320,924$268,288$7,451$4,052,602
$ - $1,990$1,141$18,986$667$ - $ - $ - $22,784
- - 4,155 - - - - 75,38979,544
01,9905,29618,9866670075,389102,328
- - 233 - 3141,643 - - 648,366
0023303141,64300648,366
100,842526,15478,28757,600613,467319,281268,288 - 3,369,846
- - - - - - - (67,938)(67,938)
100,842526,15478,28757,600613,467319,281268,288(67,938)3,301,908
$100,842$528,144$83,816$76,586$614,448$320,924$268,288$7,451$4,052,602
.
EDA Component Unit
127
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, 2015
G.O. Street
Rehabilitation
Bonds 2007 Fund
341
2008A Taxable GO
Housing
Improvement Area
Bonds Fund 315
G.O. Public Safety
Center Bonds
2008B Fund 343
G.O. Public
Facilities Bonds
2009A Fund 344
G.O. Improvement /
Revenue Bonds
2013A Fund 345
Revenues:
Taxes$121,453$ - $316,643$231,606$ -
Tax increment collections - - - - -
Special assessments - 110,655 - - -
Intergovernmental - - 300,000 - -
Investment income:
Interest and dividends130290140170380
Change in fair value(50)(120)(60)(70)(150)
Total revenues121,533110,825616,723231,706230
Expenditures:
Community development:
Other services and charges - - - - -
Capital outlay - - - - -
Debt service:
Principal retirement350,00055,000220,000170,000113,716
Interest and fiscal charges14,43342,331401,984119,4415,396
Developer incentives - - - - -
Total expenditures364,43397,331621,984289,441119,112
Revenues over (under) expenditures(242,900)13,494(5,261)(57,735)(118,882)
Other financing sources (uses):
Transfers in236,000 - - 68,134378,850
Transfers out - - - - -
Total other financing sources (uses)236,0000068,134378,850
Net change in fund balance(6,900)13,494(5,261)10,399259,968
Fund balance - January 1132,213193,889471,599249,50987,017
Fund balance - December 31$125,313$207,383$466,338$259,908$346,985
128
Statement 33
GO Library
Bonds 2015A
Fund 346
Tax Increment
Bonds Fund
376
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
$ - $ - $ - $ - $ - $ - $ - $ - $669,702
- - 25,03142,23463,988368,029 - 7,451506,733
- - - - - - - - 110,655
- - - - - - - - 300,000
2301,9007006006602,700360 - 8,260
(90)800300200(260)1,100(150) - 1,450
1402,70026,03143,03464,388371,8292107,4511,596,800
- 5,6041,6151,4363,83715,465 - - 27,957
- 154,517 - - (8,399) - - - 146,118
- - - - 60,000 - 68,000 - 1,036,716
83,088 - - - 21,892 - 138,356 - 826,921
- - 10,06437,973 - 116,151 - - 164,188
83,088160,12111,67939,40977,330131,616206,35602,201,900
(82,948)(157,421)14,3523,625(12,942)240,213(206,146)7,451(605,100)
183,790 - - - - - 216,000 - 1,082,774
- - - - - (216,000) - - (216,000)
183,7900000(216,000)216,0000866,774
100,842(157,421)14,3523,625(12,942)24,2139,8547,451261,674
- 683,57563,93553,975626,409295,068258,434(75,389)3,040,234
$100,842$526,154$78,287$57,600$613,467$319,281$268,288($67,938)$3,301,908
EDA Component Unit
129
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130
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the
year:
Economic Development Authority – a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is to foster
economic development in the City.
EDA Housing Maintenance Fund 408 – established to account for activities to maintain
the quality and quantity of housing in the City.
Capital Improvement General Government Buildings Fund 411 – used to account for
improvements to City buildings.
Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This
includes park dedication fees when available, the use of which is limited by state statute to park
improvements.
Capital Improvement Development Fund 420 – used to account for improvements to various
development areas within the City.
Capital Equipment Fire Fund 439 – used to fund replacement of fire department capital assets.
This fund is limited by state statute to fire department expenditures. The original source of the
assets in this fund was excess funding in a fire pension plan.
Capital Equipment Cable TV Fund 440 – used to fund replacement of cable television capital
assets.
131
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 34
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2015
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvements
General Gov't
Buildings Fund
411
Capital
Improvement
Parks Fund
412
Capital
Improvement
Development
Fund 420
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Total
Nonmajor
Capital
Project Funds
Assets
Cash and investments$ - $1,167,138$80,914$1,041,199$918,867$20,655$70,900$3,299,673
Due from other governments - - 18,723 - - - - 18,723
Interfund receivable - - - 340,840 - - - 340,840
Receivables:
Loans - - - 99,050 - - - 99,050
Interest - 2,100 3001,9002,1001001006,600
Real estate held for resale 21,113 - - 88,098 - - - 109,211
Total assets $21,113$1,169,238$99,937$1,571,087$920,967$20,755$71,000$3,874,097
Liabilities and Fund Balance
Liabilities:
Accounts payable - 260 - 385 - 2,969 - 3,614
Deposits - - - 3,035 - - - 3,035
Total liabilities 0 260 03,420 02,969 06,649
Fund balance:
Committed 21,1131,168,97899,9371,567,667920,96717,78671,0003,867,448
Total fund balance 21,1131,168,97899,9371,567,667920,96717,78671,0003,867,448
Total liabilities and fund balance $21,113$1,169,238$99,937$1,571,087$920,967$20,755$71,000$3,874,097
132
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 35
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2015
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvements
General Gov't
Buildings Fund
411
Capital
Improvement
Parks Fund 412
Capital
Improvement
Development
Fund 420
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Total
Nonmajor
Capital
Project
Funds
Revenues:
Intergovernmental$ - $ - $250,000$ - $ - $ - $ - $250,000
Investment income:
Interest and dividends - 11,900 1,50010,500 11,70030070036,600
Change in fair value - 4,700 600 4,200 4,60010030014,500
Program revenue - - 5,546106,700 - - - 112,246
Total revenues 016,600257,646121,400 16,3004001,000413,346
Expenditures:
Current:
Other services and charges - 22,715293,48336,379 1,18336,277 - 390,037
Capital outlay - - 431,51611,753300,157 - - 743,426
Total expenditures 022,715724,99948,132301,34036,277 01,133,463
Revenue over (under) expenditures 0 (6,115)(467,353)73,268(285,040)(35,877)1,000(720,117)
Other financing sources (uses):
Transfers in - 22,500250,000 - 100,000 - - 372,500
Transfers out (336,365) - - (425,717) - - - (762,082)
Total other financing sources (uses)(336,365)22,500250,000(425,717)100,000 0 0(389,582)
Net change in fund balance (336,365)16,385(217,353)(352,449)(185,040)(35,877)1,000(1,109,699)
Fund balance - January 1 357,4781,152,593317,2901,920,1161,106,00753,66370,0004,977,147
Fund balance - December 31 $21,113$1,168,978$99,937$1,567,667$920,967$17,786$71,000$3,867,448
133
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134
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.
135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 36
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
EliminationsTotal
Assets:
Current assets:
Cash and cash equivalents$4,200$171,967$550,309$225,150$ - $951,626
Receivables:
Accounts (net of allowance for
uncollectables)583,272 - - - - 583,272
Interest1,00060060090 - 2,290
Interfund receivable - 185,100 - - (185,100) -
Inventory - at cost8,011 - - - - 8,011
Total current assets596,483357,667550,909225,240(185,100)1,545,199
Noncurrent assets:
Capital assets:
Land45,223 - - - - 45,223
Buildings866,118 - - - - 866,118
Equipment515,901 - - - - 515,901
Infrastructure8,973,852 - - - - 8,973,852
Construction in process - - 482,295 - - 482,295
Total capital assets10,401,0940482,2950010,883,389
Less: accumulated depreciation(4,958,174) - - - - (4,958,174)
Total capital assets (net of
accumulated depreciation)5,442,920 - 482,295 - - 5,925,215
Total noncurrent assets5,442,9200482,295005,925,215
Total assets6,039,403357,6671,033,204225,240(185,100)7,470,414
Deferred outflows of resources: -
Related to pensions23,580 - - - - 23,580
Liabilities :
Current liabilities:
Accounts payable10,829 - - - - 10,829
Accrued salaries and withholdings payable7,692 - - - - 7,692
Contracts payable - retained percentage - - 11,792 - - 11,792
Due to other governmental units101,980 - 269,662 - - 371,642
Interfund payable107,400 - 77,700131,000(185,100)131,000
Accrued interest payable - - - 6,682 - 6,682
Compensated absences payable - current1,310 - - - - 1,310
Bonds payable - current - - - 170,042 - 170,042
Total current liabilities 229,2110359,154307,724(185,100)797,865
Noncurrent liabilities:
Compensated absences payable - noncurrent16,163 - - - - 16,163
Bonds payable - noncurrent - - - 830,754 - 830,754
Net pension liability171,438 - - - - 171,438
Total noncurrent liabilities187,60100830,75401,018,355
Total liabilities416,8120359,1541,138,478(185,100)1,644,782
Deferred inflows of resources:
Related to pensions19,857 - - - - 19,857
Net position:
Net investments in capital assets5,442,920 - 482,295(450,796) - 5,474,419
Restricted - - 550,000(359,385) - 190,615
Unrestricted183,394357,667(358,245)(103,057) - 79,759
Total net position$5,626,314 $357,667 $674,050 ($913,238)$0 $5,744,793
136
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations Total
Operating revenues:
Charges for services:
Customer services$58,883$ - $ - $ - $ - $58,883
Penalties95,559 - - - - 95,559
Charges for sales:
Water 2,482,751 - - - - 2,482,751
Meter8,87979,046 - - - 87,925
Total operating revenues2,646,07279,0460002,725,118
Operating expenses:
Cost of sales1,221,185 - - - - 1,221,185
Distribution624,045 - 175,089 - - 799,134
Administration31,645 - - - - 31,645
Depreciation240,377 - - - - 240,377
Total operating expenses2,117,252 0 175,089 0 0 2,292,341
Net income (loss) from operations528,820 79,046 (175,089)0 0 432,777
Nonoperating revenues (expenses):
Investment income:
Interest and dividends5,9003,100910260 - 10,170
Change in fair value2,3001,200(40)(100) - 3,360
Miscellaneous revenues5,098 - 300 - - 5,398
Miscellaneous expense(3,158) - - - - (3,158)
Interest and fiscal charges - - - (26,151) - (26,151)
Total nonoperating revenues (expenses)10,140 4,300 1,170 (25,991)0 (10,381)
Net income (loss) before transfers538,960 83,346 (173,919)(25,991)0 422,396
Transfers in115,84625,000136,827256,000(533,673) -
Transfers out(548,844) - (115,846) - 533,673(131,017)
Total transfers(432,998)25,000 20,981 256,000 0 (131,017)
Change in net position105,962 108,346 (152,938)230,009 0 291,379
Total net position - January 1, as previously reported5,683,682249,321826,988(1,143,247) - 5,616,744
Prior period adjustment(163,330) - - - - (163,330)
Total net position - January 1, as restated5,520,352249,321826,988(1,143,247) - 5,453,414
Total net position - December 31$5,626,314$357,667$674,050($913,238)$0$5,744,793
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from customers $2,717,640
Cash paid to suppliers for goods and services(1,536,248)
Cash payments to employees for services (470,118)
Net cash flows from operating activities711,274
Cash flows from noncapital financing activities:
Transfers out (131,017)
Interfund receivable repaid by (advanced to) other funds9,629
Interfund payable (repaid to) advanced by other funds(64,000)
Net cash flows from noncapital financing activities(185,388)
Cash flows from capital and related financing activities:
Acquisition of capital assets (474,047)
Principal payments - bonds (177,028)
Interest and fiscal charges (26,676)
Net cash flows from capital and related financing activities(677,751)
Cash flows from investing activities:
Investment income:
Interest and dividends 9,480
Change in fair value 3,360
Net cash flows from investing activities 12,840
Net increase (decrease) in cash and cash equivalents(139,025)
Cash and cash equivalents - January 11,090,651
Cash and cash equivalents - December 31 $951,626
Reconciliation of operating income to net cash flows from operating activities:
Operating income $432,777
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 240,377
Miscellaneous revenues 5,398
Miscellaneous expenses (3,158)
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable 19,879
(Increase) decrease in inventory, at cost (619)
(Increase) decrease in deferred pension outflows (23,580)
Increase (decrease) in accounts payable (27,489)
Increase (decrease) in accrued salaries and withholdings payable (1,434)
Increase (decrease) in contracts payable -retained percentage 6,109
Increase (decrease) in due to other governmental units 36,066
Increase (decrease) in compensated absences payable (1,017)
Increase (decrease) in net pension liability 8,108
Increase (decrease) in deferred pension inflows 19,857
Total adjustments 278,497
Net cash flows from operating activities $711,274
Noncash capital and related financing activities:$ -
138
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 39
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
EliminationsTotal
Assets:
Current assets:
Cash and cash equivalents ($2,028)$380,788$646,895$39,412$ - $1,065,067
Receivables:
Accounts (net of allowance for
uncollectibles)435,259 - - - - 435,259
Interest - 7001,450 10 - 2,160
Interfund receivables - - 299,200 - (299,200) -
Prepayments 81,197 - - - - 81,197
Total current assets514,428381,488947,54539,422(299,200)1,583,683
Noncurrent assets:
Capital assets:
Land 36,586 - - - - 36,586
Buildings403,659 - - - - 403,659
Equipment 932,135 - - - - 932,135
Construction in progress - - 124,833 - - 124,833
Infrastructure6,154,219 - - - - 6,154,219
Total capital assets7,526,5990124,833007,651,432
Less: accumulated depreciation (4,584,813) - - - - (4,584,813)
Net capital assets2,941,7860124,833003,066,619
Total noncurrent assets 2,941,786 0 124,833 0 0 3,066,619
Total assets3,456,214381,4881,072,37839,422(299,200)4,650,302
Deferred outflows of resources:
Related to pensions23,580 - - - - 23,580
Liabilities:
Current liabilities:
Accounts payable 1,386 - - - - 1,386
Accrued salaries and withholdings payable 8,413 - 61 - - 8,474
Contracts payable - retained percentage - - 10,678 - - 10,678
Interfund payable 299,200 - - - (299,200) -
Accrued interest payable - - - 2,271 - 2,271
Compensated absences payable - current 2,868 - - - - 2,868
Bonds payable - current - - - 35,000 - 35,000
Total current liabilities311,867010,73937,271(299,200)60,677
Noncurrent liabilities:
Compensated absences payable - noncurrent 35,370 - - - - 35,370
Bonds payable - noncurrent - - - 295,000 - 295,000
Net pension liability 171,438 - - - - 171,438
Total noncurrent liabilities 206,808 0 0295,000 0501,808
Total liabilities 518,675 010,739332,271(299,200)562,485
Deferred inflows of resources:
Related to pensions 19,857 - - - - 19,857
Net position:
Net investments in capital assets 2,941,786 - 124,833(84,191) - 2,982,428
Restricted - - 245,809(205,696) - 40,113
Unrestricted 2,676381,488687,797(2,962) - 1,068,999
Total net position $2,944,462$381,488$1,058,439($292,849)$0$4,091,540
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt
Service
Account
Interfund
Eliminations Total
Operating revenues:
Charges for services:
Sewer service charges$1,640,962$ - $ - $ - $ - $1,640,962
Other58,435 - - - - 58,435
Total operating revenues1,699,39700001,699,397
Operating expenses:
Disposal974,822 - - - - 974,822
Collection341,897 - 66,967 - - 408,864
Administration38,994 - - - - 38,994
Depreciation144,496 - - - - 144,496
Total operating expenses1,500,209066,967001,567,176
Net income (loss) from operations199,1880(66,967)00132,221
Nonoperating revenues (expenses):
Investment income
Interest and dividends - 3,7006,93030 - 10,660
Change in fair value - 1,5002,580(10) - 4,070
Interest and fiscal charges - - - (5,679) - (5,679)
Total nonoperating revenues (expenses)0 5,200 9,510 (5,659)0 9,051
Net income (loss) before transfers199,188 5,200 (57,457)(5,659)0 141,272
Transfers in - 25,000215,00037,000(277,000) -
Transfers out(408,016) - - - 277,000(131,016)
Total transfers(408,016)25,000 215,000 37,000 0 (131,016)
Change in net position(208,828)30,200157,54331,341 - 10,256
Total net position - January 1, as previously reported3,316,620351,288900,896(324,190) - 4,244,614
Prior period adjustment(163,330) - - - - (163,330)
Total net position - January 1, as restated3,153,290 351,288 900,896 (324,190)0 4,081,284
Net position - December 31$2,944,462$381,488$1,058,439($292,849)$0$4,091,540
140
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from customers $1,658,659
Cash paid to suppliers for goods and services(1,244,286)
Cash payments to employees for services(185,718)
Net cash flows from operating activities228,655
Cash flows from noncapital financing activities:
Transfers out (131,016)
Net cash flows from noncapital financing activities(131,016)
Cash flows from capital and related financing activities:
Acquisition of capital assets (114,250)
Principal payments - bonds (35,000)
Interest and fiscal charges (5,737)
Net cash flows from capital and related financing activities(154,987)
Cash flows from investing activities:
Investment income:
Interest and dividends 9,900
Change in fair value 4,070
Net cash flows from investing activities13,970
Net increase (decrease) in cash and cash equivalents(43,378)
Cash and cash equivalents - January 11,108,445
Cash and cash equivalents - December 31$1,065,067
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$132,221
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 144,496
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable(17,194)
(Increase) decrease in prepayments 36
(Increase) decrease in deferred pension outflows(23,580)
Increase (decrease) in accounts payable(14,904)
Increase (decrease) in accrued salaries and withholdings payable2,576
Increase (decrease) in contracts payable -retained percentage(25,493)
Increase (decrease) compensated absences payable2,532
Increase (decrease) in net pension liability8,108
Increase (decrease) in deferred pension inflows19,857
Total adjustments 96,434
Net cash flows from operating activities$228,655
Noncash capital and related financing activities:$ -
141
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 42
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
2015
Assets:
Current assets:
Cash and cash equivalents $1,504,837
Receivables:
Accounts (net of allowance for uncollectibles)495,402
Interest 2,500
Due from other governmental units 48,544
Total current assets 2,051,283
Noncurrent assets:
Capital assets:
Buildings 56,000
Equipment 112,893
Total capital assets 168,893
Less: accumulated depreciation (125,897)
Total capital assets (net of accumulated depreciation)42,996
Total noncurrent assets 42,996
Total assets 2,094,279
Deferred outflows of resources:
Related to pensions 6,977
Liabilities:
Current liabilities:
Accounts payable 258,188
Accrued salaries and withholdings payable2,757
Compensated absences payable - current 191
Total current liabilities 261,136
Noncurrent liabilities:
Compensated absences payable - noncurrent2,361
Net pension liability 50,721
Total noncurrent liabilities 53,082
Total liabilities 314,218
Deferred inflows of resources:
Related to pensions 5,875
Net position:
Net investments in capital assets 42,996
Unrestricted 1,738,167
Total net position $1,781,163
142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2015
2015
Operating revenues:
Refuse service charges $1,896,230
Operating expenses:
Collection and disposal 1,532,417
Administration 67,299
Recycling 87,216
Hazardous waste 11,723
Depreciation 3,641
Total operating expenses 1,702,296
Net income from operations 193,934
Nonoperating revenues:
Investment income
Interest and dividends 13,800
Change in fair value 5,500
Intergovernmental 96,518
Total nonoperating revenues 115,818
Net income before transfers 309,752
Transfers out (119,277)
Change in net position 190,475
Total net position - January 1, as previously reported1,639,010
Prior period adjustment (48,322)
Total net position - January 1, as restated 1,590,688
Total net position - December 31 $1,781,163
143
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from customers $1,907,682
Cash paid to suppliers for goods and services(1,476,652)
Cash payments to employees for services (85,780)
Net cash flows from operating activities345,250
Cash flows from noncapital financing activities:
Transfers out (119,277)
Intergovernmental 96,518
Net cash flows from noncapital financing activities(22,759)
Cash flows from investing activities:
Investment income:
Interest and dividends 13,400
Change in fair value 5,500
Net cash flows from investing activities18,900
Net increase in cash and cash equivalents341,391
Cash and cash equivalents - January 11,163,446
Cash and cash equivalents - December 31$1,504,837
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $193,934
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 3,641
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable2,639
(Increase) decrease in due from other governmental units15,790
(Increase) decrease in deferred pension outflows(6,977)
Increase (decrease) in accounts payable129,311
Increase (decrease) in accrued salaries and withholdings payable492
Increase (decrease) compensated absences payable(1,854)
Increase (decrease) in net pension liability2,399
Increase (decrease) in deferred pension inflows5,875
Total adjustments 151,316
Net cash flows from operating activities$345,250
Noncash capital and related financing activities:$ -
144
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account Total
Assets:
Current assets:
Cash and cash equivalents$68,133$10,000$500,056$131,173$709,362
Receivables:
Accounts (net of allowance for
uncollectibles)98,225 - - - 98,225
Interest500 - 610401,150
Total current assets166,85810,000500,666131,213808,737
Noncurrent assets:
Capital assets:
Land260,690 - - - 260,690
Equipment340,692 - - - 340,692
Infrastructure1,518,512 - - - 1,518,512
Construction in process - - 1,160,471 - 1,160,471
Total capital assets2,119,89401,160,47103,280,365
Less: accumulated depreciation(978,439) - - - (978,439)
Net capital assets1,141,45501,160,47102,301,926
Total noncurrent assets1,141,45501,160,47102,301,926
Total assets1,308,31310,0001,661,137131,2133,110,663
Deferred outflows of resources:
Related to pensions6,489 - - - 6,489
Liabilities:
Current liabilities:
Accounts payable147 - - - 147
Accrued salaries and withholdings payable2,475 - 61 - 2,536
Interfund payable - - - 34,00034,000
Accrued interest payable - - - 4,2154,215
Compensated absences payable - current 10 - - - 10
Bonds payable - current - - - 103,288103,288
Total current liabilities 2,632 0 61141,503144,196
Noncurrent liabilities:
Compensated absences payable - noncurrent 129 - - - 129
Bonds payable - noncurrent - - - 651,611651,611
Net pension liability 47,171 - - - 47,171
Total noncurrent liabilities 47,300 0 0651,611698,911
Total liabilities 49,932 0 61793,114843,107
Deferred inflows of resources:
Related to pensions 5,464 - - - 5,464
Net position:
Net investment in capital assets 1,141,455 - 1,160,471(314,899)1,987,027
Restricted - - 440,000(323,611) 116,389
Unrestricted 117,95110,00060,605(23,391)165,165
Total net position $1,259,406$10,000$1,661,076($661,901)$2,268,581
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations Total
Operating revenues:
Storm sewer service charges$375,663$ - $ - $ - $ - $375,663
Operating expenses:
Collection338,099 - 100,286 - - 438,385
Administration960 - - - - 960
Depreciation89,459 - - - - 89,459
Total operating expenses428,5180100,28600528,804
Net income (loss) from operations(52,855)0(100,286)00(153,141)
Nonoperating revenues (expenses):
Investment income
Interest and dividends2,600 - 940120 - 3,660
Change in fair value1,000 - (40)(50) - 910
Interest and fiscal charges - - - (13,884) - (13,884)
Total nonoperating
revenues (expenses)3,600 0 900 (13,814)0 (9,314)
Net income (loss) before transfers
and capital contributions(49,255)0 (99,386)(13,814)0 (162,455)
Transfers in - 5,000446142,000(147,446) -
Transfers out(147,446) - - - 147,446 -
Capital contributions - intergovernmental438 - 746,896 - - 747,334
Total transfers and contributions(147,008)5,000 747,342 142,000 0 747,334
Change in net position(196,263)5,000 647,956 128,186 0 584,879
Total net position - January 1, as previously reported1,500,6085,0001,013,120(790,087) - 1,728,641
Prior period adjustment(44,939) - - - - (44,939)
Total net position - January 1, as restated1,455,669 5,000 1,013,120 (790,087)0 1,683,702
Net position - December 31$1,259,406$10,000$1,661,076($661,901)$0$2,268,581
146
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 47
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from customers $413,352
Cash paid to suppliers for goods and services (322,067)
Cash payments to employees for services (115,731)
Net cash flows from operating activities (24,446)
Cash flows from noncapital financing activities:
Interfund payable (repaid to) advanced by other funds(16,000)
Net cash flows from noncapital financing activities:(16,000)
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,138,093)
Capital contribution 747,334
Principal payments - bonds (104,256)
Interest and fiscal charges (14,016)
Net cash flows from capital and related financing activities(509,031)
Cash flows from investing activities:
Investment income:
Interest and dividends 3,410
Change in fair value 910
Net cash flows from investing activities 4,320
Net increase (decrease) in cash and cash equivalents(545,157)
Cash and cash equivalents - January 1 1,254,519
Cash and cash equivalents - December 31 $709,362
Reconciliation of operating income to net cash flows from operating activities:
Operating income ($153,141)
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 89,459
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (3,926)
(Increase) decrease in due from other governmental units48,104
(Increase) decrease in deferred pension outflows(6,489)
Increase (decrease) in accounts payable (3,641)
Increase (decrease) in accrued salaries and withholdings payable(704)
Increase (decrease) compensated absences payable(1,804)
Increase (decrease) in net pension liability 2,232
Increase (decrease) in deferred pension inflows 5,464
Total adjustments 128,695
Net cash flows from operating activities ($24,446)
Noncash capital and related financing activities:$ -
147
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148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 48
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
OperatingDebt Service
AccountAccountTotal
Assets:
Current assets:
Cash and cash equivalents$162,809$276,462$439,271
Restricted asset: cash and cash equivalents with fiscal agent - 399,251399,251
Receivables:
Accounts (net of allowance for uncollectables)321 - 321
Interest - 50 50
Due from other governmental units 546 - 546
Inventory - at cost 2,985,683 - 2,985,683
Total current assets 3,149,359 675,763 3,825,122
Noncurrent assets:
Capital assets:
Land 2,006,714 - 2,006,714
Buildings 3,915,062 - 3,915,062
Equipment 436,380 - 436,380
Total capital assets 6,358,156 0 6,358,156
Less: accumulated depreciation (1,275,609) - (1,275,609)
Net capital assets 5,082,547 0 5,082,547
Total noncurrent assets 5,082,547 0 5,082,547
Total assets 8,231,906 675,763 8,907,669
Deferred outflows of resources:
Related to pensions 90,750 - 90,750
Liabilities:
Current liabilities:
Accounts payable 201,869 - 201,869
Accrued salaries and withholdings payable 36,267 - 36,267
Due to other governmental units 86,683 - 86,683
Accrued interest payable - 89,983 89,983
Compensated absences payable - current 6,105 - 6,105
Bonds payable - current - 185,000 185,000
Total current liabilities 330,924 274,983 605,907
Noncurrent liabilities:
Compensated absences payable - noncurrent 75,300 - 75,300
Bonds payable - noncurrent - 3,895,000 3,895,000
Net pension liability 659,807 - 659,807
Total noncurrent liabilities 735,107 3,895,000 4,630,107
Total liabilities 1,066,031 4,169,983 5,236,014
Deferred inflows of resources:
Related to pensions 76,424 - 76,424
Net position:
Net investments in capital assets 5,082,547 (3,680,749)1,401,798
Restricted for debt service - 186,637 186,637
Unrestricted 2,097,546 - 2,097,546
Total net position $7,180,093 ($3,494,112)$3,685,981
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
TopHeights
Top ValuValu IILiquor
Operating revenues:
Charges for sales:
Liquor$1,535,816$1,073,296$539,560
Beer1,653,4961,375,926579,799
Wine592,005511,62961,390
Other165,937174,480136,609
Total operating revenues3,947,254 3,135,331 1,317,358
Operating expenses:
Cost of goods sold2,963,7152,360,3861,014,790
Operating expense672,259526,407187,830
Depreciation82,55963,4082,240
Total operating expenses3,718,5332,950,201 1,204,860
Net income from operations$228,721$185,130$112,498
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
Total net position - January 1, as previously reported
Prior period adjustment
Total net position - January 1, as restated
Net position - December 31
Operating Accounts
150
Statement 49
TotalDebt
OperatingServiceIntrafund
AccountsAccountEliminationsTotal
$3,148,672$ - $ - $3,148,672
3,609,221 - - 3,609,221
1,165,024 - - 1,165,024
477,026 - - 477,026
8,399,943 0 0 8,399,943
6,338,891 - - 6,338,891
1,386,496 - - 1,386,496
148,207 - - 148,207
7,873,594 0 0 7,873,594
526,3490 0 526,349
- 151 - 151
- (60) - (60)
- (200,124) - (200,124)
(3,571) - - (3,571)
(3,571)(200,033)0 (203,604)
522,778(200,033)0 322,745
- 380,000(380,000) -
(582,789) - 380,000(202,789)
(582,789)380,0000(202,789)
(60,011)179,9670 119,956
7,868,707(3,674,079) - 4,194,628
(628,603) - - (628,603)
7,240,104(3,674,079)03,566,025
$7,180,093($3,494,112)$0$3,685,981
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 50
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from customers $8,312,054
Cash paid to suppliers for goods and services(6,803,924)
Cash payments to employees for services (996,676)
Net cash flows from operating activities511,454
Cash flows from noncapital financing activities
Transfers out (202,789)
Net cash flows from noncapital financing activities(202,789)
Cash flows from capital and related financing activities:
Acquisition of capital assets (23,178)
Principal payments - bonds (180,000)
Interest and fiscal charges - including capitalized interest(203,818)
Net cash flows from capital and related financing activities(406,996)
Cash flows from investing activities:
Investment income:
Interest and dividends 101
Change in fair value (60)
Net cash flows from investing activities 41
Net increase (decrease) in cash and cash equivalents(98,290)
Total cash and cash equivalents - January 1936,812
Total cash and cash equivalents - December 31838,522
(Less) Restricted asset: cash and cash equivalents with fiscal agent - December 31(399,251)
Cash and cash equivalents - December 31$439,271
152
CITY OF COLUMBIA HEIGHTS, MINNESOTA Statement 50
LIQUOR FUND Page 2 of 2
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2015
2015
Reconciliation of operating income to net cash flows from operating activities:
Operating income $526,349
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 148,207
Miscellaneous expense (3,571)
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (300)
(Increase) decrease in due from other governmental units 3,161
(Increase) decrease in deferred pension outflows (90,750)
AAdjustment for nonoperating portion
(Increase) decrease in inventory, at cost(108,878)
Increase (decrease) in accounts payable(66,799)
AAdjustment for nonoperating portion
Increase (decrease) in accrued salaries and withholdings payable(6,655)
Adjustment for nonoperating portion
Increase (decrease) in due to other governmental units(5,511)
Increase (decrease) in compensated absences payable8,573
Increase (decrease) in net pension liability31,204
Increase (decrease) in deferred pension inflows76,424
Total adjustments (14,895)
Net cash flows from operating activities$511,454
Noncash capital and related financing activities:$ -
153
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154
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.
Municipal Service Center Fund
Central Garage - 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.
Building Maintenance – used to account for the costs of staff charged with maintaining
City facilities. All costs are recorded in this fund and finance by transfers from user
departments.
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.
155
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 51
COMBINING STATEMENT OF NET POSITION
December 31, 2015
Municipal
Service
Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Assets:
Current assets:
Cash and cash equivalents$693,216$715,855$1,116,122$1,020,705$3,545,898
Interest receivable1,2001,3001,900 - 4,400
Prepayments - 11,20064,484 - 75,684
Inventory - at cost53,856 - - - 53,856
Total current assets748,272728,3551,182,5061,020,7053,679,838
Noncurrent assets:
Capital assets:
Land15,779 - - - 15,779
Buildings1,978,957 - - - 1,978,957
Equipment234,265252,160 - - 486,425
Total capital assets2,229,001252,160002,481,161
Less: accumulated depreciation(1,012,586)(212,428) - - (1,225,014)
Net capital assets1,216,41539,732001,256,147
Total noncurrent assets1,216,41539,732001,256,147
Total assets1,964,687 768,087 1,182,506 1,020,705 4,935,985
Deferred outflows of resources:
Related to pensions28,32223,576 - - 51,898
Liabilities:
Current liabilities:
Accounts payable13,9599,9771,112 - 25,048
Accrued salaries and withholdings payable10,3789,305 - - 19,683
Unearned revenue8,141 - - - 8,141
Compensated absences payable - current3,6031,735 - 76,55381,891
Total current liabilities36,081 21,017 1,112 76,553 134,763
Noncurrent liabilities:
Compensated absences payable - noncurrent44,43521,400 - 944,1521,009,987
Net pension liability117,005171,414 - - 288,419
Total noncurrent liabilities161,440 192,814 - 944,152 1,298,406
Total liabilities197,521 213,831 1,112 1,020,705 1,433,169
Deferred inflows of resources:
Related to pensions23,85219,855 - - 43,707
Net position:
Net investments in capital assets1,216,41539,732 - - 1,256,147
Unrestricted555,221518,2451,181,394 - 2,254,860
Total net position$1,771,636$557,977$1,181,394$0$3,511,007
156
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
Municipal
Service Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments$336,912$ - $570,570$ - $907,482
Use of space302,051 - - - 302,051
Recovery of damages - - 53,370 - 53,370
Charges for sales:
Sales of motor fuel138,688 - - - 138,688
Total operating revenues777,651 0 623,940 0 1,401,591
Operating expenses:
Cost of services and space673,730320,003600,190 - 1,593,923
Depreciation77,24021,508 - - 98,748
Total operating expenses750,970 341,511 600,190 0 1,692,671
Net income (loss) from operations26,681(341,511)23,7500(291,080)
Nonoperating revenues (expenses):
Investment income
Interest and dividends6,6997,40010,500 - 24,599
Change in fair value2,7002,9004,200 - 9,800
Miscellaneous revenue3,118 - - - 3,118
Total nonoperating revenues
(expenses)12,517 10,300 14,700 0 37,517
Net income (loss) before transfers39,198 (331,211)38,450 0 (253,563)
Transfers in - 335,000 - - 335,000
Transfers out(35,000) - (25,000) - (60,000)
Total transfers and
capital contributions(35,000)335,000 (25,000)0 275,000
Change in net position4,198 3,789 13,450 0 21,437
Net position - January 1, as previously reported1,874,706717,4961,167,944 - 3,760,146
Prior period adjustment(107,268)(163,308) - - (270,576)
Net position - January 1, as restated1,767,438554,1881,167,944 - 3,489,570
Net position - December 31$1,771,636 $557,977 $1,181,394 $0 $3,511,007
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 53
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2015
Municipal
Service Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from interfund goods and services provided$777,651$ - $570,570$ - $1,348,221
Cash received for damages - - 53,370 - 53,370
Cash paid to suppliers for goods and services(299,986)(53,295)(601,786) - (955,067)
Cash payments to employees for services(334,807)(263,617) - - (598,424)
Net cash flows provided by (used in) operating activities142,858(316,912)22,1540(151,900)
Cash flows from noncapital financing activities:
Transfers in - 335,000 - - 335,000
Transfers out(35,000) - (25,000) - (60,000)
Miscellaneous revenue3,118 - - - 3,118
Increases in compensated absences payable - - - 628,760628,760
Decreases in compensated absences payable - - - (575,356)(575,356)
Net cash flows provided by (used in)
noncapital financing activities(31,882)335,000 (25,000)53,404 331,522
Cash flows from capital and related financing activities:
Acquisition of capital assets - (14,968) - - (14,968)
Net cash flows provided by (used in)
capital and related financing activities0 (14,968)0 0 (14,968)
Cash flows from investing activities:
Investment income:
Interest and dividends6,4997,30010,500 - 24,299
Change in fair value2,7002,9004,200 - 9,800
Net cash flows provided by (used in) investing activities9,19910,20014,700034,099
Net increase (decrease) in cash and cash equivalents120,175 13,320 11,854 53,404198,753
Cash and cash equivalents - January 1573,041702,5351,104,268967,3013,347,145
Cash and cash equivalents - December 31$693,216 $715,855 $1,116,122 $1,020,705 $3,545,898
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss)$26,681($341,511)$23,750$ - ($291,080)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense77,24021,508 - - 98,748
Changes in assets and liabilities:
(Increase) decrease in prepayments - (11,200)(2,708) - (13,908)
(Increase) decrease in inventory, at cost14,706 - - 14,706
(Increase) decrease in deferred pension outflows(28,322)(23,576)(51,898)
Increase (decrease) in accounts payable6,5088,6911,112 - 16,311
Increase (decrease) in accrued
salaries and withholdings payable4,3051,339 - - 5,644
Increase (decrease) in compensated absences payable7,914(124) - - 7,790
Increase (decrease) in deferred revenue237 - - - 237
Increase (decrease) in net pension liability9,7378,10617,843
Increase (decrease) in deferred inflows of resources23,85219,855 - - 43,707
Total adjustments116,177 24,599 (1,596)0 139,180
Net cash flows provided by (used in) operating activities$142,858($316,912)$22,154$0($151,900)
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 54
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
CentralCapitalBuilding
GarageEquipmentMaintenance
OperatingReplacementOperating
AccountAccountAccountTotal
Assets:
Current assets:
Cash and cash equivalents$627,821$49,935$15,460$693,216
Interest receivable1,100100 - 1,200
Inventory - at cost53,856 - - 53,856
Total current assets682,77750,03515,460748,272
Noncurrent assets:
Capital assets:
Land15,779 - - 15,779
Buildings1,978,957 - - 1,978,957
Equipment234,265 - - 234,265
Total capital assets2,229,001002,229,001
Less: Accumulated depreciation(1,012,586) - - (1,012,586)
Net capital assets1,216,415001,216,415
Total noncurrent assets1,216,415001,216,415
Total assets1,899,19250,03515,4601,964,687
Deferred outflows of resources:
Related to pensions15,486 - 12,83628,322
Liabilities:
Current liabilities:
Accounts payable13,941 - 1813,959
Accrued salaries and withholdings payable6,324 - 4,05410,378
Unearned revenue8,141 - - 8,141
Compensated absences payable - current3,152 - 4513,603
Total current liabilities31,558 0 4,523 36,081
Noncurrent liabilities:
Compensated absences payable - noncurrent38,877 - 5,55844,435
Net pension liability112,592 - 4,413117,005
Total noncurrent liabilities151,469 0 9,971 161,440
Total liabilities183,027 0 14,494 197,521
Deferred inflows of resources:
Related to pensions13,042 - 10,81023,852
Net position:
Net investments in capital assets1,216,415 - - 1,216,415
Unrestricted502,19450,0352,992555,221
Total net position$1,718,609$50,035$2,992$1,771,636
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 55
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
CentralCapitalBuilding
GarageEquipmentMaintenance
OperatingReplacementOperatingIntrafund
AccountAccountAccountEliminationsTotal
Operating revenues:
Charges for services:
Services to departments$189,512$ - $147,400$ - $336,912
Use of space302,051 - - - 302,051
Charges for sales:
Sales of motor fuel138,688 - - - 138,688
Total operating revenues630,251 0 147,400 0 777,651
Operating expenses:
Cost of services and space529,122 - 144,608 - 673,730
Depreciation77,240 - - - 77,240
Total operating expenses606,362 0 144,608 0 750,970
Net income from operations23,889 - 2,792 - 26,681
Nonoperating revenues:
Investment income:
Interest and dividends6,100499100 - 6,699
Change in fair value2,400200100 - 2,700
Miscellaneous revenue3,118 - - - 3,118
Total nonoperating revenues11,618699200012,517
Net income before transfers35,5076992,992039,198
Transfers in - 4,000 - (4,000) -
Transfers out(39,000) - - 4,000(35,000)
Total transfers(39,000)4,000 0 0 (35,000)
Change in net position(3,493)4,6992,99204,198
Net position - January 1, as previously reported1,829,37045,336 - - 1,874,706
Prior period adjustment(107,268) - - - (107,268)
Net position - January 1, as restated1,722,102 45,336 0 0 1,767,438
Total net position - December 31$1,718,609 $50,035 $2,992 $0 $1,771,636
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 56
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from interfund goods & services provided$777,651
Cash paid to suppliers for goods and services(299,986)
Cash payments to employees for services (334,807)
Net cash flows from operating activities142,858
Cash flows from noncapital financing activities:
Transfers out (35,000)
Miscellaneous revenue 3,118
Net cash flows from noncapital financing activities:(31,882)
Cash flows from capital and related financing activities:
Acquisition of capital assets -
Net cash flows from capital and related financing activities0
Cash flows from investing activities:
Investment income:
Interest and dividends 6,499
Change in fair value 2,700
Net cash flows from investing activities9,199
Net increase (decrease) in cash and cash equivalents120,175
Cash and cash equivalents - January 1573,041
Cash and cash equivalents - December 31$693,216
Reconciliation of operating income to net cash flows from operating activities:
Operating income $26,681
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 77,240
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in inventory, at cost 14,706
(Increase) decrease in deferred pension outflows(28,322)
Increase (decrease) in accounts payable 6,508
Increase (decrease) in accrued salaries and withholdings payable4,305
Increase (decrease) in compensated absences payable7,914
Increase (decrease) in unearned revenue 237
Increase (decrease) in net pension liability9,737
Increase (decrease) in deferred pension inflows23,852
Total adjustments 116,177
Net cash flows from operating activities$142,858
Noncash capital and related financing activities:$ -
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
Capital
Equipment
Operating Replacement
AccountAccountTotal
Assets:
Current assets:
Cash and cash equivalents$263,157$452,698$715,855
Interest receivable5008001,300
Prepaid expenses11,200 - 11,200
Total current assets274,857453,498728,355
Noncurrent assets:
Capital assets:
Equipment252,160 - 252,160
Less: accumulated depreciation(212,428) - (212,428)
Net capital assets39,732039,732
Total noncurrent assets39,732039,732
Total assets314,589453,498768,087
Deferred outflows of resources:
Related to pensions23,576 - 23,576
Liabilities:
Current liabilities:
Accounts payable9,977 - 9,977
Accrued salaries and withholdings payable9,305 - 9,305
Compensated absences payable - current1,735 - 1,735
Total current liabilities21,017021,017
Noncurrent liabilities:
Compensated absences payable - noncurrent21,400 - 21,400
Net pension liability171,414 - 171,414
Total noncurrent liabilities192,8140192,814
Total liabilities213,8310213,831
Deferred inflows of resources:
Related to pensions19,855 - 19,855
Net position:
Net investments in capital assets39,732 - 39,732
Unrestricted64,747453,498518,245
Total net position$104,479 $453,498 $557,977
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
Capital
Equipment
OperatingReplacement
AccountAccountTotal
Operating revenues$ - $ - $ -
Operating expenses:
Cost of services310,8239,180320,003
Depreciation21,508 - 21,508
Total operating expenses332,3319,180341,511
Net income (loss) from operations(332,331)(9,180)(341,511)
Nonoperating revenues:
Investment income
Interest and dividends2,9004,5007,400
Change in fair value1,1001,8002,900
Total nonoperating revenues4,0006,30010,300
Net income (loss) before transfers(328,331)(2,880)(331,211)
Transfers in335,000 - 335,000
Change in net position6,669 (2,880)3,789
Net position - January 1, as previously reported261,118456,378717,496
Prior period adjustment(163,308) - (163,308)
Net position - January 1, as restated97,810456,378554,188
Net position - December 31$104,479 $453,498 $557,977
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 59
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash paid to suppliers for goods and services($53,295)
Cash payments to employees for services(263,617)
Net cash flows from operating activities(316,912)
Cash flows from noncapital financing activities:
Transfers in 335,000
Net cash flows from noncapital financing activities:335,000
Cash flows from capital and related financing activities:
Acquisition of capital assets (14,968)
Cash flows from investing activities:
Investment income:
Interest and dividends 7,300
Change in fair value 2,900
Net cash flows from investing activities10,200
Net increase in cash and cash equivalents13,320
Cash and cash equivalents - January 1702,535
Cash and cash equivalents - December 31$715,855
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($341,511)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 21,508
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in prepayments (11,200)
(Increase) decrease in deferred pension outflows(23,576)
Increase (decrease) in accounts payable 8,691
Increase (decrease) in accrued salaries and withholdings payable1,339
Increase (decrease) in compensated absences payable(124)
Increase (decrease) in net pension liability8,106
Increase (decrease) in deferred pension inflows19,855
Total adjustments 24,599
Net cash flows from operating activities($316,912)
Noncash capital and related financing activities:$ -
164
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 60
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
2015
Assets:
Current assets:
Cash and cash equivalents $1,116,122
Interest receivable 1,900
Prepayments 64,484
Total assets 1,182,506
Liabilities:
Current liabilities:
Accounts payable 1,112
Total liabilities 1,112
Net position:
Unrestricted 1,181,394
Total net position $1,181,394
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 61
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
2015
Operating revenues:
Insurance allocation $570,570
Recovery of damages 53,370
Total operating revenues 623,940
Operating expenses:
Cost of services:
Premiums 538,325
Claims 61,865
Total operating expenses 600,190
Net income from operations 23,750
Nonoperating revenues:
Investment income
Interest and dividends 10,500
Change in fair value 4,200
Total nonoperating revenues 14,700
Net income 38,450
Transfers out (25,000)
Change in net position 13,450
Net position - January 1 1,167,944
Net position - December 31 $1,181,394
166
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 62
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from interfund services provided$570,570
Cash received for damages 53,370
Cash paid to suppliers for goods and services(601,786)
Net cash flows from operating activities22,154
Cash flows from noncapital financing activities:
Transfers out (25,000)
Cash flows from investing activities:
Investment income:
Interest and dividends 10,500
Change in fair value 4,200
Net cash flows from investing activities14,700
Net increase in cash and cash equivalents11,854
Cash and cash equivalents - January 11,104,268
Cash and cash equivalents - December 31$1,116,122
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$23,750
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in prepayments (2,708)
Increase (decrease) in accounts payable 1,112
Total adjustments (1,596)
Net cash flows from operating activities$22,154
Noncash capital and related financing activities:$ -
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 63
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2015
2015
Assets:
Current assets:
Cash and cash equivalents $1,020,705
Total assets 1,020,705
Liabilities:
Current liabilities:
Compensated absences payable - current 76,553
Noncurrent liabilities:
Compensated absences payable - noncurrent944,152
Total liabilities 1,020,705
Net position:
Unrestricted -
Total net position $0
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 64
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2015
2015
Operating revenues $ -
Net income (loss) from operations -
Change in net position -
Net position - January 1 -
Net position - December 31 $0
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 65
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2015
2015
Cash flows from operating activities:
Cash received from interfund services provided$ -
Net cash flows from operating activities 0
Cash flows from noncapital financing activities:
Increases in compensated absences payable628,760
Decreases in compensated absences payable(575,356)
Net cash flows from noncapital financing activities:53,404
Net increase in cash and cash equivalents53,404
Cash and cash equivalents - January 1967,301
Cash and cash equivalents - December 31$1,020,705
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$ -
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities: None -
Net cash flows from operating activities $0
Noncash capital and related financing activities:$ -
170
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.
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 66
AGENCY FUNDS
For The Year Ended December 31, 2015
BalanceBalance
January 1,December 31,
2015AdditionsDeletions2015
Permit Surcharge Fund
Assets:
Cash and investments$1,446$76,025($70,742)$6,729
Total assets$1,446$76,025($70,742)$6,729
Liabilities:
Due to other governmental units$1,446$6,730($1,447)$6,729
Total liabilities$1,446$6,730($1,447)$6,729
Tri-City GIS Fund
Assets:
Cash and investments$9,772$98,034($86,490)$21,316
Due from other governmental units1,73479(1,734)79
Total assets$11,506$98,113($88,224)$21,395
Liabilities:
Accounts payable$9,611$127,090($117,418)$19,283
Due to other governmental units1,8952,112(1,895)2,112
Total liabilities$11,506$129,202($119,313)$21,395
Total
Assets:
Cash and investments$11,218$174,059($157,232)$28,045
Due from other governmental units1,73479(1,734)79
Total assets$12,952$174,138($158,966)$28,124
Liabilities:
Accounts payable$9,611$127,090($117,418)$19,283
Due to other governmental units3,3418,842(3,342)8,841
Total liabilities$12,952$135,932($120,760)$28,124
172
III. STATISTICAL SECTION (UNAUDITED)
173
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174
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.
175
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET POSITIONS BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200620072008
Governmental activities:
Invested in capital assets, net of related debt$18,043,277$18,859,030$23,497,922
Restricted 2,224,3842,228,4542,316,959
Unrestricted 23,028,97422,985,52321,011,465
Total governmental activities net position$43,296,635$44,073,007$46,826,346
Business-type activities:
Invested in capital assets, net of related debt$5,759,805$6,039,739$7,142,278
Restricted 455,227775,036745,601
Unrestricted 7,299,5746,478,3835,855,495
Total business-type activities net position$13,514,606$13,293,158$13,743,374
Primary government:
Invested in capital assets, net of related debt$23,803,082$24,898,769$30,640,200
Restricted 2,679,6113,003,4903,062,560
Unrestricted 30,328,54829,463,90626,866,960
Total primary government net position$56,811,241$57,366,165$60,569,720
Note: The City implemented GASB statement No. 68 in fiscal 2015. 2014 net position information has
been restated for this accounting change. Years prior to 2014 have not been restated.
Fiscal Year
176
Table 1
2009201020112012201320142015
$24,163,911$26,279,178$28,095,261$27,666,461$27,358,490$26,049,057$27,168,555
2,458,7432,034,0303,213,4552,624,4662,025,6523,752,8394,710,968
22,423,35123,142,53421,119,17921,241,59522,222,57816,881,30215,717,275
$49,046,005$51,455,742$52,427,895$51,532,522$51,606,720$46,683,198$47,596,798
$7,459,474$8,044,184$9,331,167$9,819,666$10,365,407$10,729,457$11,928,401
648,435438,275381,465161,503643,320543,822533,756
6,014,1406,725,3835,918,1476,680,6096,690,1116,058,0656,098,230
$14,122,049$15,207,842$15,630,779$16,661,778$17,698,838$17,331,344$18,560,387
$31,623,385$34,323,362$37,426,428$37,486,127$37,723,897$36,778,514$39,096,956
3,107,1782,472,3053,594,9202,785,9692,668,972$4,296,661$5,244,724
28,437,49129,867,91727,037,32627,922,20428,912,689$22,939,367$21,815,505
$63,168,054$66,663,584$68,058,674$68,194,300$69,305,558$64,014,542$66,157,185
Fiscal Year
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA `
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200620072008
Expenses
Governmental activities:
General government$1,689,675$1,732,111$1,835,453
Public safety 3,992,9304,380,3634,599,669
Public works 2,353,0322,506,9132,906,950
Culture and recreation2,135,6332,313,7502,283,881
Community development2,579,0845,918,2574,476,475
Interest on long-term debt118,760496,688721,006
Total governmental activities expenses12,869,11417,348,08216,823,434
Business-type activities:
Water 2,026,6032,113,1212,149,976
Sewer 1,393,6791,675,7381,571,487
Refuse 1,147,8791,170,7071,185,298
Storm sewer 184,764204,221216,362
Liquor 6,377,8056,539,3577,470,323
Total business-type activities expenses11,130,73011,703,14412,593,446
Total primary government expenses$23,999,844$29,051,226$29,416,880
Program revenues
Governmental activities:
Charges for services:
General government$171,146$177,378$173,485
Public safety 528,752670,017616,107
Public works 267,960130,35167,226
Culture and recreation263,565297,341262,562
Community development1,461,4971,504,6791,562,345
Operating grants and contributions:
General government 2,769 - 2,560
Public safety 355,356389,325433,732
Public works 161,176154,309154,049
Culture and recreation79,37147,784239,865
Community development160,017159,624185,506
Capital grants and contributions:
General government - - -
Public safety 52,463103,97457,700
Public works 3,896,8621,448,1801,596,348
Culture and recreation141,73871,51642,588
Community development682,8721,311,5252,974,449
Total governmental activities program revenues8,225,5446,466,0038,368,522
Fiscal Year
178
Table 2
Page 1 of 2
2009201020112012201320142015
$1,761,334$2,013,750$2,039,680$1,977,594$1,976,207$2,104,025$2,128,964
4,591,9775,473,2245,549,6785,708,0095,683,7695,801,7476,265,485
2,794,1892,777,9662,654,0473,200,5722,843,1023,052,8443,529,547
2,182,8562,479,5192,576,4092,500,7192,553,7602,565,7552,926,004
2,385,4052,295,5741,630,3502,157,9662,010,0401,943,5761,555,640
961,392959,320909,858845,879808,933761,967948,493
14,677,15315,999,35315,360,02216,390,73915,875,81116,229,91417,354,133
1,927,8112,000,1012,370,0762,311,8582,371,4142,336,4752,367,954
1,737,1341,478,5181,710,3811,464,2691,538,9701,789,2601,621,506
1,290,5281,426,4861,561,6591,601,6481,628,9661,695,9971,753,406
376,884272,355298,577329,998307,876315,809541,926
7,701,9617,910,9518,155,8888,371,6108,341,3098,148,7888,125,188
13,034,31813,088,41114,096,58114,079,38314,188,53514,286,32914,409,980
$27,711,471$29,087,764$29,456,603$30,470,122$30,064,346$30,516,243$31,764,113
$169,850$192,005$189,641$204,391$385,728$194,201$206,531
637,653715,205697,656736,927706,168752,694703,489
34,14944,21148,303139,30539,14189,39251,991
256,969269,825159,829137,978163,931234,494227,224
1,019,1911,114,848962,276961,420976,030987,7221,001,740
1,505 - - - - - -
434,402559,482563,914556,387511,527404,486485,439
161,401166,468176,578189,039233,748557,1121,314,378
102,51793,47476,86457,33756,06931,52118,422
211,400241,919112,89523,010 - - 96,274
- 194,84238,399 - - - -
19,52016,02611,303 - - - 15,350
1,683,0242,848,1791,314,547797,921855,227183,706811,654
1,50015,724 - - - - 252,260
199,505541,826175,467204,3491,026,706422,773364,791
4,932,5867,014,0344,527,6724,008,0644,954,2753,858,1015,549,543
Fiscal Year
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200620072008
Business-type activities:
Charges for services:
Water $2,141,648$2,273,980$2,414,316
Sewer 1,374,2171,419,2521,440,165
Refuse 1,263,2671,303,4721,341,014
Storm sewer 270,467290,419314,238
Liquor 6,546,9796,722,6227,490,942
Operating grants and contributions:
Water - - -
Sewer - - 1,718
Refuse 47,75536,06050,572
Storm sewer - - -
Capital grants and contributions:
Water 22,822 - -
Sewer - - 54,774
Refuse - - -
Storm sewer - - -
Total business-type activities program revenues11,667,15512,045,80513,107,739
Total primary government program revenues$19,892,699$18,511,808$21,476,261
Net (expense) revenue:
Governmental activities($4,643,570)($10,882,079)($8,454,912)
Business-type activities536,425342,661514,293
Total primary government net (expense) revenue(4,107,145)(10,539,418)(7,940,619)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes 5,953,7226,321,4676,762,129
Tax increment collections1,086,2981,183,0621,557,891
Unrestricted grants and contributions1,679,3841,844,5161,516,412
Investment earnings706,2311,379,7261,050,827
Miscellaneous 15,93044,00040,877
Transfers 957,879456,537280,115
Total governmental activities10,399,44411,229,30811,208,251
Business-type activities:
Investment earnings181,708321,571216,038
Transfers (957,879)(456,537)(280,115)
Total business-type activities(776,171)(134,966)(64,077)
Total primary government$9,623,273$11,094,342$11,144,174
Change in net position:
Governmental activities$5,755,874$347,229$2,753,339
Business-type activities(239,746)207,695450,216
Total primary government$5,516,128$554,924$3,203,555
Fiscal Year
180
Table 2
Page 2 of 2
2009201020112012201320142015
$2,471,257$2,503,506$2,530,803$2,777,383$3,020,174$2,805,072$2,730,516
1,465,4961,594,3221,523,8521,581,5161,618,7861,627,0781,699,397
1,383,9791,542,3121,682,1781,761,8601,826,2261,887,0381,896,230
370,590345,086350,618353,343368,925366,384375,663
7,962,8848,158,2598,494,9628,804,2338,747,0848,415,3718,399,943
- - - - 1,971 - -
- - - - - - -
50,10536,65366,16362,47168,56591,42196,518
- - - - 14,335 - -
- - - - - - -
- - - - - - -
- - - 50,000 - - -
- - - - 47,369747,334
13,704,31114,180,13814,648,57615,390,80615,666,06615,239,73315,945,601
$18,636,897$21,194,172$19,176,248$19,398,870$20,620,341$19,097,834$21,495,144
($9,744,567)($8,985,319)($10,832,350)($12,382,675)($10,921,536)($12,371,813)($11,804,590)
669,9931,091,727551,9951,311,4231,477,531953,4041,535,621
(9,074,574)(7,893,592)(10,280,355)(11,071,252)(9,444,005)(11,418,409)(10,268,969)
8,046,3188,825,5029,069,0929,363,5989,827,37810,310,86710,512,483
1,244,684812,965558,861553,050532,524463,837491,639
1,731,1851,176,9341,278,1951,003,5521,000,5131,496,8041,682,480
475,345487,612598,880295,950(664,694)1,091,263342,384
82,704 - 34,4857,33811,842 - (679,895)
383,99092,044264,990263,814288,171361,426369,099
11,964,22611,395,05711,804,50311,487,30210,995,73413,724,19712,718,190
92,67286,110135,93263,321(152,300)252,36062,521
(383,990)(92,044)(264,990)(263,814)(288,171)(361,426)(369,099)
(291,318)(5,934)(129,058)(200,493)(440,471)(109,066)(306,578)
$11,672,908$11,389,123$11,675,445$11,286,809$10,555,263$13,615,131$12,411,612
$2,219,659$2,409,738$972,153($895,373)$74,198$1,352,384$913,600
378,6751,085,793422,9371,110,9301,037,060844,3381,229,043
$2,598,334$3,495,531$1,395,090$215,557$1,111,258$2,196,722$2,142,643
Fiscal Year
181
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
200620072008
General fund:
Reserved $35,323$35,710$12,159
Unreserved 3,560,5253,943,4363,743,798
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total general fund$3,595,848$3,979,146$3,755,957
All other governmental funds:
Reserved $2,668,322$2,382,354$968,602
Unreserved, reported in:
Special revenue funds(506,084)411,0901,868,340
Debt service funds809,0621,745,4473,242,471
Capital projects funds15,034,96815,918,04820,233,690
Nonspendable - - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned - - -
Total all other governmental funds$18,006,268$20,456,939$26,313,103
Fiscal Year
182
Table 3
2009201020112012201320142015
$71,898$77,204$ - $ - $ - $ - $ -
4,724,2535,265,035 - - - - -
- - 80,76787,34192,63894,89294,848
- - - - - - -
- - 132,59574,59450,23730,548 -
- - - - - - 44,000
- - 5,655,6935,914,9746,254,4027,248,3806,873,054
$4,796,151$5,342,239$5,869,055$6,076,909$6,397,277$7,373,820$7,011,902
$1,643,915$1,550,071$ - $ - $ - $ - $ -
2,332,6103,190,618 - - - - -
3,177,5863,713,774 - - - - -
13,173,07411,642,407 - - - - -
- - 2,353,1642,763,8521,750,1141,522,5372,724
- - 3,440,6494,186,0813,879,7064,368,8519,821,307
- - 12,774,44010,988,36812,229,48113,593,60912,902,165
- - - - - - -
- - (1,041)(2,782)(39,344)(75,389)(92,040)
$20,327,185$20,096,870$18,567,212$17,935,519$17,819,957$19,409,608$22,634,156
Fiscal Year
183
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200620072008
Revenues:
Taxes $6,977,604$7,444,199$8,263,763
Special assessments1,011,5531,137,5762,505,523
Licenses and permits597,557444,833423,465
Intergovernmental 4,228,3084,229,4143,734,826
Charges for services1,887,3141,995,8591,665,604
Fines and forfeitures129,400160,383142,283
Investment earnings648,7441,271,216984,846
Other revenues251,414170,344296,815
Total revenues15,731,894 16,853,824 18,017,125
Expenditures:
Current:
General government1,577,4841,616,3741,706,244
Public safety3,887,8844,122,4114,345,716
Public works1,523,1701,640,7131,955,250
Culture and recreation2,074,8352,238,7932,202,680
Community development2,256,1223,077,3104,077,576
Capital outlay:
General government4,512 - 5,453
Public safety 82,986254,7283,499,713
Public works4,202,6651,303,2971,084,959
Culture and recreation117,909274,8963,269,986
Community development266,144306,332287,620
Debt service:
Principal retirement782,273792,2731,029,836
Interest and fiscal charges119,544219,065384,293
Issuance costs25,114148,972155,397
Developer incentives142,4512,584,85471,341
Total expenditures17,063,093 18,580,018 24,076,064
Revenues over (under) expenditures(1,331,199)(1,726,194)(6,058,939)
Fiscal Year
184
Table 4
Page 1 of 2
2009201020112012201320142015
$9,218,038$9,631,635$9,683,433$9,948,228$10,416,523$10,774,987$11,022,424
879,0921,020,334729,327775,714667,719458,6701,116,734
435,618479,148378,357396,226412,208415,032626,547
3,777,3554,936,4432,820,4192,314,1952,719,4002,766,3834,079,184
1,513,6671,650,7721,652,6551,663,7821,710,7671,702,9001,440,361
139,955188,693170,089161,882148,023140,571124,067
456,145469,312562,180275,750(611,794)1,011,063318,284
102,901273,44670,17363,674104,57773,815189,073
16,522,771 18,649,783 16,066,633 15,599,451 15,567,423 17,343,421 18,916,674
1,646,9741,926,9821,880,2571,813,4331,791,3791,939,6891,950,062
4,418,4364,968,4335,037,5485,250,8815,171,3225,270,7985,595,115
1,736,9991,731,7001,509,5272,011,5071,644,0751,916,8742,220,057
2,003,6352,194,8532,306,6932,184,2142,233,4462,247,4522,581,993
2,115,6281,351,3681,321,4311,434,3291,205,2731,544,4191,136,220
45,708 - 144,029209,17613,86821,642 -
8,997,400237,27295,281158,44870,960103,707608,932
951,2402,925,1741,882,787557,820896,22379,2251,727,488
2,256,958194,380140,86718,10739,768100,2484,173,606
139,1181,202,99840,549636,294566,901413,179507,472
783,974765,7361,659,022972,0001,559,730662,0001,036,716
835,167981,281935,405861,139833,890770,535826,921
56,189 - - - - - 85,016
125,857141,005181,638116,072163,97255,123164,188
26,113,283 18,621,182 17,135,034 16,223,420 16,190,807 15,124,891 22,613,786
(9,590,512)28,601 (1,068,401)(623,969)(623,384)2,218,530 (3,697,112)
Fiscal Year
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
200620072008
Other financing sources (uses):
Bonds issued$2,759,550$3,890,000$10,975,000
Bond premium (discount)26,303(22,108) -
Transfers in 1,807,877570,374377,615
Transfers out (70,000)(70,000)(88,941)
Sale of capital assets78,013191,897428,240
Special item - - -
Total other financing sources (uses)4,601,743 4,560,163 11,691,914
Net change in fund balance$3,270,544$2,833,969$5,632,975
Expenditures capitalized for governmental
activities reporting purposes4,592,7871,896,3637,909,561
Debt service as a percentage
of noncapital expenditures (A) (B)7.2%6.1%8.7%
Debt service as a percentage
of total expenditures (A) (B)5.3%5.4%5.9%
(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.
Fiscal Year
186
Table 4
Page 2 of 2
2009201020112012201320142015
$4,190,000$ - $ - $ - $563,021$ - $6,875,000
- - - - - - 293,651
458,231407,272411,736298,814326,740405,728429,099
(99,224)(120,100)(302,881)(110,000)(113,569)(124,302)(120,000)
95,781 - 40,99911,31551,99766,2369,135
- - - - - - (927,142)
4,644,788 287,172 149,854 200,129 828,189 347,662 6,559,743
($4,945,724)$315,773($918,547)($423,840)$204,805$2,566,192$2,862,631
12,364,5113,637,5592,270,210943,602952,108417,5036,602,755
11.8%11.7%17.5%12.0%15.7%9.7%11.6%
6.2%9.4%15.1%11.3%14.8%9.5%8.2%
Fiscal Year
187
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 NetTotalEstimated Capacity Value
Fiscal OtherCaptured Tax Area Wide Allocation (C)Tax CapacityDirect TaxMarketas a Percent
Year ResidentialProperty (B)Increment ValueSubtotalContributionDistribution Value Rate Value of EMV
2006$11,487,424$1,861,133($1,193,227)$12,155,330($453,305)$2,324,917$14,026,94244.736%$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%
20158,872,2941,824,746(465,433)10,231,607(569,588)4,339,04014,001,05970.811%1,093,861,5001.280%
(A) 2012-2013 taxable market values used to calculate tax capacity values in this table are reduced by the market value homestead exclusion,
which is new for 2012.
(B)The category "Other Property" is substantially all commercial/industrial property, plus nomimal amounts of railroad and personal property.
( C)The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in
commercial-industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area-wide
tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This
index is employed in determining what proportion of the valuation shall be distributed back to each assessment district.
Source: Anoka County Auditor's Tax Certificate
188
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
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%
201570.811%32.562%38.123%10.811%152.307%
(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.
Overlapping Rates (B)
189
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190
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$150,42811.63%$190,39211.66%
Bre Non-Core 2 Owner B, LLC115,108 2 1.25%N/AN/AN/A
Crestview Corporation93,14531.01%71,10680.62%
Hart Lake Apartments LLC86,85040.94%N/AN/AN/A
Columbia Park Properties83,22650.90%92,98040.81%
Xcel Energy/ Northern States Power Co72,11860.78%56,916100.49%
Columbia Heights Center LLC68,64070.75%69,72890.61%
Venture Bank65,25080.71%N/AN/AN/A
Health Care Reit Inc62,57790.68%N/AN/AN/A
Burlington Northern58,292100.63%N/AN/AN/A
Lynde Investment Co MN PartnershipN/AN/AN/A78,99960.69%
New Heights DevelopmentN/AN/AN/A73,1797N/A
Consolidated Realty of MplsN/AN/AN/A108,04330.94%
Equity Partners LLCN/AN/AN/A83,0185N/A
Bradley Operating LPN/AN/AN/A140,94421.23%
Total$855,6349.28%$965,3057.04%
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.
20062015
191
CITY OFCOLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
CountyState Market
FiscalGrossAdjustmentsValue Homestead
YearTax Levy (A)to Levy (B)Credit (A)
2006$6,347,537($160)($517,322)
20076,500,613(189)(471,660)
20087,045,370(74)(451,019)
20097,702,363(161)(447,755)
20109,075,425(302)(535,625)
20119,426,760(141)(608,241)
20129,136,706(54) -
20139,536,888(182) -
20149,911,706166 -
201510,233,706207 -
(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.
192
Table 8
Collections inTotal Collections to Date
AdjustedCollection% of AdjustedSubsequent% of Adjusted
Tax LevyAmountTax LevyYearsAmountTax Levy
$5,830,055$5,672,90997.30%$156,887$5,829,796100.00%
6,028,7645,842,54096.91%185,6686,028,20899.99%
6,594,2776,400,60497.06%190,0076,590,61199.94%
7,254,4477,021,60596.79%225,2487,246,85399.90%
8,539,4988,279,06596.95%252,3628,531,42799.91%
8,818,3788,578,78497.28%223,5638,802,34799.82%
9,136,6528,932,56497.77%175,8089,108,37299.69%
9,536,7069,379,87398.36%109,2129,489,08599.50%
9,911,8729,778,63198.66% - 9,778,63198.66%
10,233,913Not AvailableNot AvailableN/A Not AvailableNot Available
Collected Within The Fiscal Year For
Which Levied
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneralGeneral
ObligationObligationObligation
Bonds RepaidBondsBonds WithTax IncrementTotal
FiscalOnly WithWith PledgedPledged SpecialRevenueGovernmental
YearGeneral TaxesTax IncrementAssessmentsBondsActivities
2006$ - $1,385,000$4,181,569$ - $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
201213,090,000580,0002,211,7302,737,00018,618,730
201312,685,000525,0001,733,0212,679,00017,622,021
201412,260,000470,0001,613,0212,617,00016,960,021
201518,460,000410,0001,379,3052,549,00022,798,305
(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.
194
Table 9
Business-Type ActivitiesAll Activities
GeneralLiquor
ObligationFacility
Bonds WithLeaseTotalPercentage
Pledged UtilityRevenueBusiness-TypeTotalof PersonalPer
RevenuesBondsActivitiesAll DebtIncome (A)Capita (A)
$3,248,431$ - $3,248,431$8,815,0002.0%482
2,950,7045,040,0007,990,70416,655,0003.8%919
2,590,5405,040,0007,630,54026,240,0006.0%1,447
2,540,5125,040,0007,580,51229,595,9986.7%1,612
2,128,2484,900,0007,028,24828,277,9986.0%1,450
1,304,2704,750,0006,054,27025,645,0005.3%1,315
1,123,2704,595,0005,718,27024,337,0004.8%1,240
2,436,9794,430,0006,866,97924,489,0005.1%1,245
2,401,9794,260,0006,661,97923,622,0004.9%1,201
2,085,6954,080,0006,165,69528,964,0005.7%1,466
195
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)
2006$5,566,569$809,062$4,757,5070.37%
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%
201414,281,0211,134,22713,146,7941.32%
201520,249,3051,174,47319,074,8322.00%
(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.
196
Table 10
Business-typeSubtotal of
GeneralLess:Business-type
Obligation BondsBusiness-typeNet GeneralPercentageTotal
With PledgedRestricted forObligationof UtilityNet GeneralPer
Utility RevenuesRepaymentBonded DebtRevenueBonded DebtCapita (A)
$3,248,431$457,794$2,790,63755.3%$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
2,085,695533,7561,551,93924.0%$20,626,7711,048
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2015
Estimated
EstimatedShare of
DebtPercentageOverlapping
Governmental Unit (A)OutstandingApplicable (B)Debt
Debt repaid with property taxes:
Anoka County$143,506,2814.5981%$4,929,698
Independent School District 1317,255,000 71.0729%11,150,488
Metropolitan Council 1,507,019,856 0.4263%647,637
Subtotal - overlapping debt 16,727,823
City direct debt - governmental activities22,798,305
Total direct and overlapping debt $39,526,128
(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
198
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2015
Assessor's Estimated Market Value (A)$1,093,861,500
Debt limitation percentage (A)3%
Debt limit32,815,845
Net debt applicable to limit (B)18,460,000
Legal debt margin$14,355,845
Legal debt margin as a percentage of limit43.75%
Legal Debt Margin Calculation for Fiscal Years 2005 Through 2014
Legal Debt
Net DebtLegalMargin as a
FiscalDebtApplicable toDebtPercentage
YearLimitLimitMarginof Debt Limit
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%
201428,634,25012,260,00016,374,25057.18%
(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.
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT
Last Ten Fiscal Years
2006 - 200720082009
Economic Development Authority
Tax Increment Revenue Bonds Series 2007:
Tax increment revenue from applicable parcels$ - $243,159$267,142
Intergovernmental:
Market Value TIF credit - 14,00219,554
Net available revenue$0$257,161$286,696
Debt service:
Principal - - 9,000
Interest - 158,325152,363
Total debt service$0$158,325$161,363
CoverageN/A162%178%
Economic Development Authority
Lease Revenue Bonds Series 2007B:
Annual appropriation of liquor net revenues$ - $210,264$497,200
Investment income - 8,63871
Issuance costs and administration (expense)(A) - (113,491)(2,000)
Net available revenue$0$105,411$495,271
Debt service:
Principal$ - $ - $ -
Interest - 208,264240,305
Total debt service$0$208,264$240,305
CoverageN/A51%206%
(A)Restated issuance costs for yaers after 2010, 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
200
Table 13
201020112012201320142015
$241,854$211,533$175,832$170,496$162,056$196,024
28,11834,351 - - - -
$269,972$245,884$175,832$170,496$162,056$196,024
43,00048,00053,00058,00062,00068,000
151,063148,788146,263143,488140,488137,238
$194,063$196,788$199,263$201,488$202,488$205,238
139%125%88%85%80%96%
$364,000$390,000$386,000$390,000$384,000$380,000
1,1051,5001,000(2,500)3,230211
(2,556)(2,000)(2,000)(2,332)(2,200)(2,667)
$362,549$389,500$385,000$385,168$385,030$377,544
$140,000$150,000$155,000$165,000$170,000$180,000
237,155230,630223,768213,178209,030201,155
$377,155$380,630$378,768$378,178$379,030$381,155
96%102%102%102%102%99%
Fiscal Year
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Per
Capita
FiscalPersonalPersonalUnemployment
YearPopulationIncomeIncomeRate
200618,288$442,789,056$24,2123.9%
200718,124438,818,28824,2124.5%
200818,137439,133,04424,2125.5%
200918,361444,556,53224,2128.4%
201019,496472,037,15224,2128.0%
201119,568487,243,20024,9006.8%
201219,667507,408,60025,8005.9%
201319,667478,616,11224,3365.0%
201419,674502,434,61225,5384.1%
201519,758621,863,29231,4743.6%
Sources are as follows:
Population: Data for the years 2006-2009 provided by the Metropolitan Council.
Data for 2010 is from the 2010 US Census. Data for 2011-2015 is estimated by the US Census Bureau.
Per Capita Income:
Data for 2005-2015 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.
202
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 Heights20240.11%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 2,0201.09%1,9551.15%
(A) Employment data is not compiled for individual cities within Minnesota counties.
Sources:
The employee count for the City of Columbia Heights is from Table 16. 2015 data for other employers was
compiled from ReferenceUSA, written and telephone survey (August 2014), and the Minnesota Department of Employment
and Economic Development. 2006 data from Official Statement for the City of Columbia Heights 2006A GO bond series.
20062015
203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program200620072008
General government
Mayor/council555
Administration444
Finance121313
Public safety:
Police313134
Fire363329
Public works171617
Culture and recreation:
Library222225
Parks555
Recreation161617
Community development776
Water454
Sewer443
Refuse- - -
Storm sewer- - 1
Liquor374238
Total200203201
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,
204
Table 16
2009201020112012201320142015
5555555
51011111044
14131413131313
35363537363535
31303233313130
18171616152123
21192120212118
5555555
14131615151515
6554444
4444444
3333444
- - - - - - -
1 1 1 1 1 1 1
40413940404041
202202207207204203202
Employees as of December 31,
205
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
200620072008
General government:
Resolutions approved by City Council (A)234198247
Ordinances adopted by City Council141226
Public safety:
Police:
Part I crimes (B)1,1671,2461,098
Part II crimes (B)3,1843,1442,966
Fire:
Emergency medical calls (B)1,8061,8882,093
Fire calls (B)387445385
Inspections & Related Actions (B)3,7094,6036,955
Public works:
Street paving and patching (tons of asphalt)7101,9101,415
Street sweeping (tons of debris)637 648 420
Trees removed 188 357 175
Culture and recreation:
Library:
Items in collection 70,354 71,594 72,420
Circulation 119,593 125,222 126,271
Reference inquiries 15,106 13,715 13,793
Parks and recreation:
Athletics participants (C)1,654 1,537 1,510
Other programs, estimated attendance (D)9,000 8,000 8,000
Number of paid room rentals 191 185 190
Community development:
Number of business licenses issued 342 306 363
Number of building permits issued (E)1,701 1,313 1,113
Construction value of permits issued $26,798,827$22,230,118$21,917,792
Water:
Consumption (thousands of gallons)529,581 538,844 518,791
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 30)536,920 495,580 511,090
Miles of line cleaned/rodded/root-sawed 39 27 29
Refuse:
Refuse (tons)8,397 6,587 7,323
Recycling (tons)1,721 1,522 1,318
Yardwaste (tons)645 654 727
Storm sewer:
No operating indicators available not avail not avail not avail
Liquor:
Number of units sold 758,000 768,000 920,121
(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
206
Table 17
2009201020112012201320142015
170115159159949896
1212155329
882768755742674684673
1,2751,6831,5761,4081,3261,0521,018
1,6941,6641,7221,8391,9421,8111,980
660846764752852729787
3,7245,7206,0735,4135,2495,0774,855
1,0331,0548691,029224782696
581638712350574540470
121180180157284217282
69,70272,05571,30372,98576,65878,13773,907
120,705131,885125,051129,624121,827117,888109,018
17,77114,35216,60114,54716,06813,20813,923
1,6021,5004,2994,2325,5345,12510,836
8,0008,0008,0009,00010,48510,63722,679
210160177135139140153
379393334323346339359
1,1871,3511,2901,0581,3031,2122,164
$13,376,732$14,481,712$7,986,467$7,203,199$7,388,271$7,609,375$25,476,137
518,299516,068454,223495,870461,520449,415417,687
437,520444,820485,000455,210455,310467,680415,000
39262526333326
7,2396,7706,7896,5636,6846,6486,895
1,0361,6991,6051,6101,6901,6701,824
7731,1001,2701,2701,1691,2501,450
not availnot availnot availnot availnot availnot availnot avail
1,029,1391,028,1601,060,1501,103,7901,045,1881,038,9851,090,131
Fiscal Year
207
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program200620072008
General government:
City hall square footage 28,53028,53028,530
Public safety:
Police Stations111
Fire Stations 111
Public Safety Bldg square footageNote ANote ANote A
Public works:
Office and shop square footage31,07531,07531,075
Trunk highway miles333
County road miles666
City street miles626262
Alley miles191919
Culture and recreation:
Libraries111
Library square footage7,8967,8967,896
Parks131313
Playgrounds111111
Gymnasiums square footage - - -
Mtg & banquet rooms square footage22,00022,00022,000
Community development:
Senior high-rise apartments (B)145145145
Water:
Watermain miles666666
Sewer:
Sanitary sewer miles595959
Refuse:
Recycling centers111
Storm sewer:
Storm sewer miles343434
Liquor:
Retail stores owned113
Retail stores leased22 -
(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.
(B)In 2015, Senior high-rise apartment building was sold
Sources: Various City departments.
Fiscal Year
208
Table 18
2009201020112012201320142015
28,53028,53028,53028,53028,53028,53028,530
1111111
1111111
Note A47,08847,08847,08847,08847,08847,088
31,07531,07531,07531,07531,07531,07531,075
3333333
6666666
62626262626262
19191919191919
1111111
7,8967,8967,8967,8967,8967,8967,896
13131313131313
11111111111111
12,72612,72612,72612,72612,72612,72612,726
22,00022,00022,00022,00022,00022,00022,000
145145145145145145 -
66666666666666
59595959595959
1111111
34343434343434
3333333
- - - - - - -
Fiscal Year
209
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210
IV. OTHER REQUIRED REPORTS SECTION
211
- This page intentionally left blank -
212
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
MINNESOTA LEGAL COMPLIANCE REPORT
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, 2015, and the related notes to the financial statements,
and have issued our report thereon dated June 13, 2016.
The Minnesota Legal Compliance Audit Guide for Cities, 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 Cities. 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 13, 2016
213
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214
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, 2015, 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 13, 2016.
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.
215
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 13, 2016
216
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, 2015, and have
issued our report thereon June 13, 2016. 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 13, 2016
217
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, 2015
Line
ItemAccount DescriptionTotal Projects
Assets:
Current assets:
111 Cash - unrestricted $921,740
100 Total cash 921,740
Accounts and notes receivable:
125 Accounts receivable - miscellaneous8,910
120 Total receivables, net of allowance8,910
150 Total current assets 930,650
Noncurrent assets:
171Notes, Loans and Morgages Receivable - Non-Current5,200,000
180 Total noncurrent assets5,200,000
190 Total assets 6,130,650
Liabilities:
Current liabilities:
312 Accounts payable <= 90 days$3,510
331 Accounts payable - HUD PHA programs6,127,140
310 Total current liabilities6,130,650
350 Total noncurrent liabilities0
300 Total liabilities 6,130,650
Net Position:
508.4 Net investment in capital assets -
512.4 Unrestricted net position -
513 Total net position $0
218
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, 2015
Page 2 of 2
Public HousingPublic Housing
OperatingCapital Fund
Line SubsidyProgram
ItemAccount Description14.85014.872Total Projects
Revenue:
703 Net tenant rental revenue$260,780$ - $260,780
704 Tenant revenue - other3,162 - 3,162
706 HUD PHA grants96,27464,791161,065
715 Other revenue6,146 - 6,146
711 Investment income -unrestricted2,717 - 2,717
700 Total revenue369,079 64,791 433,870
Expenses:
911 Administrative salaries19,125 - 19,125
912 Auditing fees4,550 - 4,550
913 Outside management fees115,226 - 115,226
914 Advertising and marketing - - -
916 Office Expenses1,157 - 1,157
917 Legal expense - - -
919 Other expense2,037 - 2,037
931 Water 6,214 - 6,214
932 Electricity44,432 - 44,432
933 Gas 22,735 - 22,735
936 Sewer 3,393 - 3,393
938 Other utilities expense14,573 - 14,573
942 Ordinary maintenance and operations - materials and other9,395 - 9,395
943 Ordinary maint. and operations contracts - HVAC12,155 - 12,155
943 Ordinary maint. and operations contracts - snow removal1,647 - 1,647
943 Ordinary maint. and operations contracts - elevator6,643 - 6,643
943 Ordinary maint. and operations contracts - grounds9,278 - 9,278
943 Ordinary maint. and operations contracts - unit turnaround9,857 - 9,857
943 Ordinary maint. and operations contracts - extermination882 - 882
943 Ordinary maint. and operations contracts - janitorial37,450 - 37,450
943 Ordinary maint. and operations contracts - routine maintenance8,382 - 8,382
943 Ordinary maint. and operations contracts - miscellaneous235 - 235
952 Protective services12,414 - 12,414
961 Insurance premiums11,327 - 11,327
962 Other general expenses3,432 - 3,432
963 Payments in lieu of taxes17,834 - 17,834
969 Total operating expenses374,373 0 374,373
974 Depreciation52,83752,837
900 Total expenses427,210 0 427,210
1001Operating transfers in64,791 - 64,791
1002Operating transfers out - (64,791)(64,791)
1008Special Items (net gain/loss)(2,065,049) - (2,065,049)
1010 Total other financing sources (uses)(2,000,258)(64,791)(2,065,049)
1000Excess (deficiency) of revenue over expenses and
and other financing uses (sources)($2,058,389)$0($2,058,389)
Memo account information:
1103 Beginning equity$2,058,389$ - $2,058,389
1120 Unit months available909 - 909
1121 Number of unit months leased879 - 879
219
CITY OF COLUMBIA HEIGHTS, MINNESOTA
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE - STATEMENT AND CERTIFICATION OF ACTUAL MODERNIZATION COSTS
For The Year Ended December 31, 2015
FY 2012FY 2013FY 2014
MN 46P105501-12MN 46P105501-13MN 46P105501-14
A.The actual modernization costs are as follows:
Funds approved$84,944$81,917$85,284
Funds (expended)(84,944)(81,917)(85,284)
Excess of funds approved (expended)$0$0$0
Funds advanced - HUD CFP Grants$84,944$81,917$85,284
Funds (expended):
In prior years($79,856)($70,097)($37,401)
In current year(5,088)(11,820)(47,883)
Excess of funds advanced (expended)$0$0$0
220