HomeMy WebLinkAbout2016 CAFR
CITY OF COLUMBIA HEIGHTS
STATE OF MINNESOTA
PREPARED BY:
FINANCE DEPARTMENT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
DECEMBER 31, 2016
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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 132
Statement of ActivitiesStatement 234
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 336
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental FundsStatement 438
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 541
Statement of Net Position - Proprietary FundsStatement 642
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary FundsStatement 744
Statement of Cash Flows - Proprietary FundsStatement 846
Statement of Fiduciary Net Position - Fiduciary FundsStatement 950
Notes to Financial Statements 51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Required Supplementary Information:
Budgetary Comparison Schedule - General FundStatement 1094
Schedule of Funding Progress for the Retiree Health PlanStatement 1196
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - General Statement 1297
Employees Retirement Fund
Schedule of Pension Contributions - General Employees Retirement FundStatement 1398
Schedule of Employer's Proportionate Share of Plan Net Pension Liability - Public
Employees Police and Fire FundStatement 1499
Schedule of Pension Contributions - Public Employees Police and Fire FundStatement 15100
Notes to RSI 101
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 16108
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 17109
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 18112
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 19114
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balance:
Budget and Actual - Cable Television Fund Statement 20116
Actual - Police Forfeiture Fund Statement 21117
Budget and Actual - Public Safety Grants Fund Statement 22118
Budget and Actual - Library Fund Statement 23119
Budget and Actual - After School Programs Fund Statement 24120
Actual - Recreation Contributed Projects Fund Statement 25121
Actual - Contributed Projects - Other Fund Statement 26122
Budget and Actual - Special Projects Fund Statement 27123
Budget and Actual - Planning and Inspections Fund Statement 28124
Actual - Anoka County Comm Dev Programs Fund Statement 29125
Economic Development Authority (Component Unit):
Budgetary Comparison Schedule - Administration Fund Statement 30126
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 31128
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 32130
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 33134
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 34135
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Enterprise Funds:
Water Utility Fund:
Subcombining Schedule of Net Position Statement 35138
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 36139
Subcombining Schedule of Cash FlowsStatement 37140
Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 38141
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 39142
Subcombining Schedule of Cash FlowsStatement 40143
Refuse Utility Fund:
Subcombining Schedule of Net Position Statement 41144
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 42145
Subcombining Schedule of Cash FlowsStatement 43146
Storm Sewer Utility Fund:
Subcombining Schedule of Net Position Statement 44148
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 45149
Subcombining Schedule of Cash FlowsStatement 46150
Liquor Fund:
Subcombining Schedule of Net Position Statement 47151
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 48152
Subcombining Schedule of Cash FlowsStatement 49154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
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Internal Service Funds:
Combining Statement of Net PositionStatement 50158
Combining Statement of Revenues, Expenses and Changes in Fund
Net PositionStatement 51159
Combining Statement of Cash FlowsStatement 52160
Municipal Service Center:
Subcombining Schedule of Net Position Statement 53161
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 54162
Subcombining Schedule of Cash FlowsStatement 55163
Information Systems Fund:
Subcombining Schedule of Net Position Statement 56164
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 57165
Subcombining Schedule of Cash FlowsStatement 58166
Insurance Fund:
Subcombining Schedule of Net Position Statement 59167
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 60168
Subcombining Schedule of Cash FlowsStatement 61169
Compensated Absences Fund:
Subcombining Schedule of Net Position Statement 62170
Subcombining Schedule of Revenues, Expenses and Changes in
Fund Net PositionStatement 63171
Subcombining Schedule of Cash FlowsStatement 64172
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 65174
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III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Positions by Component Table 1 178
Changes in Net Position Table 2 180
Fund Balances - Governmental Funds Table 3 184
Changes in Fund Balances - Governmental Funds Table 4 186
Revenue Capacity:
Tax Capacity Value and Estimated Market Value of All Taxable Property Table 5 190
Direct and Overlapping Property Tax Rates Table 6 191
Principal Property Taxpayers Table 7 193
Property Tax Levies and Collections Table 8 194
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 196
Ratios of Outstanding Net General Bonded Debt by Type Table 10 198
Direct and Overlapping Governmental Activities Debt Table 11 200
Legal Debt Margin Information Table 12 201
Pledged Revenue Coverage Non-Obligation Debt Table 13 202
Demographic and Economic:
Demographic and Economic Statistics Table 14 204
Principal Employers Table 15 205
Operating Information:
City Government Employees by Function/Program Table 16 206
Operating Indicators by Function/Program Table 17 208
Capital Asset Statistics by Function/Program Table 18 210
IV. OTHER REQUIRED REPORTS SECTION
Minnesota Legal Compliance Report 215
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 217
Report on Supplementary Information - Financial Data Schedule 219
U.S. Department of Housing and Urban Development:
Financial Data Schedule 220
Financial Data Schedule - Statement and Certification of Actual Modernization Costs 222
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I. INTRODUCTORY SECTION
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2016
Name Official Title
Mayor and Council:
Gary L. Peterson Mayor
John Murzyn, Jr Councilmember
Donna Schmitt Councilmember
Bruce Nawrocki Councilmember
Robert A. Williams Councilmember
Administration:
Walter Fehst City Manager
Kelli Bourgeois Human Resources Director, Assistant to City Manager
Joseph Kloiber Finance Director, Treasurer
Jim Hoeft City Attorney
Kevin Hansen Public Works Director, City Engineer
Scott Nadeau Chief of Police
Gary Gorman Chief of Fire
Renee Dougherty Library Director
Joe Hogeboom Community Development Director
Keith Windschitl Recreation Services Director
Larry Scott Liquor Operations Manager
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City of Columbia Heights
Organizational Chart
2016
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
Economic Development Manager
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 1, 2017
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, 2016, 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,
2016. 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 19,632. The City is empowered to levy a tax on
both real and personal property within its boundaries.
All City funds, departments, commissions and other organizations for which the City of
Columbia Heights is financially accountable, including all component units, are presented within
the Comprehensive Annual Financial Report. The Columbia Heights Housing and
Redevelopment Authority (HRA) and the Columbia Heights Economic Development Authority
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City of Columbia Heights
Letter of Transmittal
June 1, 2017
Page 2
(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 2016, 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 1, 2017
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, 2016, 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
In 2016 the National Civic League awarded the City of Columbia Heights 2016 All America
City status for innovative and effective community problem-solving. Only 10 cities in the
country were chosen for this honor and Columbia Heights is the only one in Minnesota to be
selected this year. The criteria for earning the award included impact, inclusiveness, public
engagement and the use of collaborative problem-solving strategies linking the private, public
and nonprofit sectors. The City and the Columbia Heights Public School District were cited for
their strong collaborative partnerships including the City of Peace Park Initiative in the Circle
Terrace Neighborhood, the Hylander gym and the new Columbia Heights Public Library.
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 2016, the Authority issued approximately $27
million in conduit financing to assist with a 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. The project was substantially completed in 2016.
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, 2015. 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
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City of Columbia Heights
Letter of Transmittal
June 1, 2017
Page 4
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
8
(D
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Columbia Heights
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 3lr 2015
Wr'rPtu-
Executive Director/CEO
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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, 2016, 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, 2016, and the respective changes in financial position, and,
where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Columbia Heights, Minnesota’s 2015 financial
statements and we expressed an unmodified audit opinion on the respective financial statements
of the governmental activities, the business-type activities, each major fund and the aggregate
remaining fund information in our report dated June 13, 2016. In our opinion, the summarized
comparative information presented herein as of and for the year ended December 31, 2015 is
consistent, in all material respects, with the audited financial statements from which it has been
derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, 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 1,
2017, 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 1, 2017
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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, 2016. 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, 2016, by $67,539,541 (net position). Of this amount, $20,397,368 or 30% is unrestricted net
position which may be used to meet the City’s ongoing obligations to citizens and creditors.
During 2016, the City’s total net position of the government-wide financial statements was positively
impacted in the current year by $1,382,356. Of this total, $991,987 was an increase to the
governmental activities and $390,369 was an increase in the City’s business-type activities.
As of December 31, 2016, the combined fund balances of the City’s governmental funds were
$26,137,546. This is a decrease of $3,508,512 or 12% from the prior year. Also, approximately 27%
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, 2016, unassigned fund balance in the General fund was $7,229,386 or 97% 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, 2016.
During 2016, the City’s total bonded debt decreased by $824,301 to an end of year total of
$27,920,232, due to principal payments on existing bonded debt and the net effect of refunding a TIF
revenue bond.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net position presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
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Management’s Discussion and Analysis
The statement of activities presents information showing how the City’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities). The governmental activities of the City include general
government, public safety, public works, culture and recreation and community development. The
business-type activities of the City include water, sanitary sewer, refuse, storm sewer and liquor
operations.
The government-wide financial statements are presented as Statements 1 and 2 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and change in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the governmental
fund statement of revenues, expenditures, and changes in fund balances for each major governmental
fund. The major governmental funds in 2016 are as follows:
General Fund
Municipal State Aid Street Fund
Capital Equipment Replacement General Government Fund
Capital Improvements-PIR Fund
Capital Building Library Fund
18
Management’s Discussion and Analysis
HRA (Component Unit) Parkview Villa North and South Fund
TIF Huset Park Area 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.
Other information. Required supplementary information for the General Fund are presented as
Statement 10 of this report. Certain required supplementary information on pensions and other post-
employment benefits are presented as Statements 11 through 15 of this report. The combining and
individual fund statements and schedules are presented as Statements 16 through 65 of this report.
19
Management’s Discussion and Analysis
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, 2016, the City’s assets exceeded its liabilities by $67,539,541.
$41,394,456 or 61% 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,
$20,397,368 or 30%, may be used to meet the City’s ongoing obligations to citizens and creditors.
At December 31, 2016, 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.
Changes in net position - governmental activities. During the current year, governmental activities
increased the City’s net position by $991,987 or 2%. Significant elements of this change differed
from the prior year increase of 2% as follows:
Governmental activities revenue increased $252,951 or 2% over the prior year. This increase
was primarily from $223,000 of park dedication fees from a residential developer plus
collection of $200,000 of developer fees, offset by senior housing rent discontinued by 2015
sale of property.
2016 2015 2016 2015 2016 2015
Assets:
Current and other assets $39,357,031$44,419,006$10,145,028$10,807,728$49,502,059$55,226,734
Capital assets 48,272,16642,554,18117,238,26916,459,03865,510,43559,013,219
Total assets 87,629,197 86,973,187 27,383,297 27,266,766 115,012,494 114,239,953
Deferred outflows of resources 11,390,335 1,315,454 804,689174,952 12,195,024 1,490,406
Liabilities:
Current liabilities 2,886,8634,260,5251,758,3871,638,9224,645,2505,899,447
Noncurrent liabilities 45,456,35635,468,8587,241,0187,095,07752,697,37442,563,935
Total liabilities 48,343,21939,729,3838,999,4058,733,99957,342,62448,463,382
Deferred inflows of resources 2,087,528 962,490 237,825 147,332 2,325,353 1,109,822
Net position:
Net invested in capital assets 29,429,29927,168,55511,965,15711,928,40141,394,45639,096,956
Restricted 5,175,8654,710,968571,852533,7565,747,7175,244,724
Unrestricted 13,983,62115,717,2756,413,7476,098,23020,397,36821,815,505
Total net position $48,588,785$47,596,798$18,950,756$18,560,387$67,539,541$66,157,185
CITY OF COLUMBIA HEIGHTS' NET POSITION
TotalsGovernmental Activities Business-Type Activities
20
Management’s Discussion and Analysis
Governmental activities expenses increased $1,154,972 or 7% over the prior year. This
primarily reflects an increase of $1,733,167 in public safety pension expense as a result in
plan assumption changes. Offsetting this, was a $678,018 decrease in expenses of the
community development function, due to sale of the senior housing project in 2015.
The return of $927,142 of unspent grant funds to the U.S. Department of Housing and
Redevelopment was reported as a special item for 2015 in the statement of activities,
coinciding with the termination of the HRA’s public housing program.
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services $2,309,451 $2,190,975 $15,533,200 $15,101,749$17,842,651$17,292,724
Operating grants and
contributions 1,636,785 1,914,513 99,454 96,518 1,736,239 2,011,031
Capital grants and
contributions 1,993,825 1,444,055 70,645 747,334 2,064,470 2,191,389
General revenues:
Property taxes 10,752,430 10,512,483 - - 10,752,430 10,512,483
Tax increment collections 556,880 491,639 - - 556,880 491,639
Grants and contributions not
restricted to specific programs 1,588,094 1,682,480 - - 1,588,094 1,682,480
Unrestricted investment earnings 232,036 342,384 40,670 62,521 272,706 404,905
Gain on sale of capital assets
used in governmental activities 9,226 247,247 - - 9,226 247,247
Total revenues 19,078,727 18,825,776 15,743,969 16,008,122 34,822,696 34,833,898
Expenses:
General government 2,239,6012,128,964 - - 2,239,6012,128,964
Public safety 7,786,4576,265,485 - - 7,786,4576,265,485
Public works 3,664,0413,529,547 - - 3,664,0413,529,547
Culture and recreation 2,982,9192,926,004 - - 2,982,9192,926,004
Community development 877,6221,555,640 - - 877,6221,555,640
Interest on long-term debt 958,465948,493 - 958,465948,493
Water - - 2,535,1332,367,9542,535,133 2,367,954
Sewer - - 1,770,5381,621,5061,770,538 1,621,506
Refuse - - 1,860,6021,753,4061,860,602 1,753,406
Storm sewer - - 490,608541,926 490,608 541,926
Liquor - - 8,274,3548,125,1888,274,354 8,125,188
Total expenses 18,509,105 17,354,133 14,931,235 14,409,980 33,440,340 31,764,113
Increase (decrease) in
net position before transfers and special items569,622 1,471,643 812,734 1,598,142 1,382,356 3,069,785
Transfers 422,365 369,099 (422,365) (369,099) - -
Special item - (927,142) - - - (927,142)
Increase in net position 991,987 913,600 390,369 1,229,043 1,382,356 2,142,643
Net position - January 1, as previously reported47,596,798 52,959,104 18,560,387 18,543,176 66,157,185 71,502,280
Prior period adjustment - (6,275,906) - (1,211,832) - (7,487,738)
Net position - January 1, as restated 47,596,798 46,683,198 18,560,387 17,331,344 66,157,185 64,014,542
Net position - December 31 $48,588,785$47,596,798$18,950,756$18,560,387$67,539,541$66,157,185
Business-Type Activities Totals
CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION
Governmental Activities
21
Management’s Discussion and Analysis
22
Management’s Discussion and Analysis
Changes in net position - Business-type activities. In 2016, business-type activities increased the
City’s total net position by $390,369 or 2%. In the prior year, business-type activities increased in
net position by $1,229,043. The significant elements of this smaller increase include:
Business-type activities revenue decreased by $264,153 or 2% over the prior year. This was
the result of a decrease in grant revenues of $673,753 for storm sewer improvements, offset
by a $431,451 increase in charges for services caused primarily by increases to utility rates
set by the City Council.
The business-type activities expenses increased by $521,255. This increase was spread
across most functional categories, reflecting an increase in operating cost including personnel
expenses and cost of sales.
23
Management’s Discussion and Analysis
Financial Analysis of the City’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
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, 2016, the City’s governmental funds reported combined fund balances of
$26,137,546. Committed, assigned and unassigned fund balance, which is available for spending at
the City’s discretion, has a combined balance of $19,441,915. 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 ($112,693), debt service ($1,907,498), tax increment purposes
($2,013,836), and various other purpose restrictions ($2,661,604) detailed in the notes to the financial
statements.
24
Management’s Discussion and Analysis
The General Fund is the chief operating fund of the City. During the current year, fund balance in
the General Fund increased by $432,325 or 7%. Significant elements of this increase include:
Transfers from the General to the other funds decreased by $1,581,855 or 98% over the prior
year. In 2015 one-time transfers were made to fund capital purchase of a firetruck and
construction of a Library, as well as, to call and redeem certain general obligation bonded
debt.
General Fund expenditures increased by $78,714 or 1% over the prior year. This reflects
inflationary increases in functions other than public safety, offset by slight decline in public
safety expenses, as follows:
o Public safety personnel expenses were down $84,101 due to two full-time firefighters
being fully compensated by a federal grant in the non-major funds and the deferred
hiring of a police position.
o Approximately $55,000 reduction in public safety supply purchases. Of this, $21,000
was from lower fuel prices in 2016, compared to 2015. Also, $15,000 of protective
equipment purchased in 2015, was either deferred or purchased through the non-
major funds. Lastly, 2015 saw larger than normal purchases of small equipment
including the purchase of 6 Tasers and a replacement treadmill.
Intergovernmental revenues decreased by $680,411 or 6% over the prior year. This is largely
due to a change in internal recognition of Local Government Aid (LGA). In 2015, certain
LGA was recognized in the General Fund then transferred out to other funds. In 2016, this
LGA is recognized directly in the other funds.
The changes in fund balance of the other major governmental funds in 2016, and significant elements
of those changes, were as follows:
The Municipal State Aid Street Fund decreased by $52,160. This reflects the difference
between the expense for maintenance of state roads within the City that exceeded the current
year intergovernmental revenue.
The Capital Equipment Replacement General Government Fund increased by $17,799. This
reflects the amount of capital equipment sold in the year, other changes in activities were
largely offsetting
The Capital Improvements PIR Fund decreased by $169,122. 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 decreased by $5,485,062. This is the cost of capital outlay
for a new (replacement) library facility, net of additional resources provided in 2016.
25
Management’s Discussion and Analysis
The Housing and Redevelopment Authority (Component Unit) Parkview Villa North and
South Fund increased by $8,450, primarily as a result of investment income.
The TIF Huset Park Area Fund increased $136,916, due to increment received in excess of
developer incentives.
The combined fund balances of the nonmajor governmental funds increased by $1,602,342 or 18%
over the prior year. The most significant element of this increase were:
Net transfers in/out changed approximately $1.6 million. 2015 had net transfers out of over
$1 million. 2016 had net transfers-in of approximately $600,000. This primarily reflects
2015 transfers of $1.2 million dollars from nonmajor funds to fund the construction of a
replacement library.
Special Projects Fund saw a one-time increase in revenue when the City issued $26,940,000
of conduit debt and collected a 1% administration fee. In addition, this fund also received a
one-time fee of $100,000 pursuant to a developer agreement.
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, 2016, net position of the major proprietary funds included the following amounts
of unrestricted net position:
Water Fund $54,455
Sewer Fund $1,140,207
Refuse Fund $1,787,057
Storm Sewer Fund $388,604
Liquor Fund $2,084,313
The 2016 changes in net position of the major proprietary funds included the following:
Water Fund $345,735
Sewer Fund $55,806
Refuse Fund $45,549
Storm Sewer Fund ($90,540)
Liquor Fund $39,192
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 2016 General Fund budget consisted of:
Several small budget amendments to increase intergovernmental revenue, charges for
services, and miscellaneous other revenues, by a total of $53,673. All of these changes were
26
Management’s Discussion and Analysis
paired with related increases to budgeted police and fire expenditures. This reflects
additional services and training funded by external entities in mid-year.
Actual general fund revenues in 2016 were more than budgeted by $149,426 or 1%:
This was primarily the result of $155,000 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 2016 were less than budgeted by $425,017 or 4%:
General government function:
o Approximately $91,000 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
maintenance expenses were lower than budgeted. Finally, a 5-month position
vacancy within the finance department comprises the remainder of the variance.
Public safety function:
o Approximately $161,000 of this variance reflects staff vacancies, and new hires at
entry level wages instead of full level wages.
o Approximately $37,000 was due to a reduction in actual fuel prices from
budgeted.
o Lastly, $31,000 of this variance was in professional services. This includes lower
than budgeted contract renewals for veterinary services and central records
maintenance with Anoka County; and fewer services, such as transports, needed.
27
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, 2016, amount to $65,510,433 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 $5,148,249 $0 $0$5,148,249
Construction in progress 5,951,091 7,750,319 (1,784,530) 11,916,880
Total capital assets not being depreciated 11,099,340 7,750,319 (1,784,530) 17,065,129
Capital assets - being depreciated:
Buildings 23,244,762 - - 23,244,762
Equipment 8,648,953 281,274 (112,068) 8,818,159
Infrastructure 31,084,239 1,550,593 - 32,634,832
Total capital assets being depreciated 62,977,954 1,831,867 (112,068) 64,697,753
Less accumulated depreciation for:
Buildings 8,967,357 561,799 - 9,529,156
Equipment 6,309,747 462,923 (109,131) 6,663,539
Infrastructure 16,246,009 1,052,012 - 17,298,021
Total accumulated depreciation 31,523,113 2,076,734 (109,131) 33,490,716
Capital assets being depreciated - net 31,454,841 (244,867) (2,937) 31,207,037
Governmental activities capital assets - net 42,554,181 7,505,452 (1,787,467) 48,272,166
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 1,767,599 1,344,179 (2,599,793) 511,985
Total capital assets not being depreciated 4,116,812 1,344,179 (2,599,793) 2,861,198
Capital assets - being depreciated:
Buildings 5,240,838 439,054 - 5,679,892
Equipment 2,563,324 123,690 (21,956) 2,665,058
Infrastructure 16,646,584 2,148,900 - 18,795,484
Total capital assets being depreciated 24,450,746 2,711,644 (21,956) 27,140,434
Less accumulated depreciation for:
Buildings 1,669,497 157,182 - 1,826,679
Equipment 1,842,772 120,485 (21,956) 1,941,301
Infrastructure 8,596,254 399,131 - 8,995,385
Total accumulated depreciation 12,108,523 676,798 (21,956) 12,763,365
Capital assets being depreciated - net 12,342,223 2,034,846 014,377,069
Business-type activities capital assets - net 16,459,035 3,379,025 (2,599,793) 17,238,267
Total capital assets - net 59,013,216 10,884,477 (4,387,260) 65,510,435
28
Management’s Discussion and Analysis
Significant capital asset activity during 2016 included the following:
Year
Project StartedCost to DateStatus
Jackson Pond Reconstruction20131,148,632 in-service
Watermain Lining2014477,316 in-service
Concrete Alley Reconstruction2014644,801 in-service
Library Building Replacement201410,634,462 in-progress
Recreational Splash Pad2015459,708 in-service
Street Reconstruction - Zone 12015446,084 in-service
Street Rehabitilization - Zone 2 & 32015392,253 in-progress
Water Tower Improvements2015439,054 in-service
Lift Station Reconstruction2015522,951 in-service
Street Reconstruction - Stinson Blvd2016808,312 in-progress
As of December 31, 2016
At December 31, 2016, the City had $673,947 of non-cancellable contractual commitments for
construction in 2016, primarily for the street reconstruction and sewer lining projects. Additional
information on the City’s capital assets can be found in Note 5 to the financial statements.
Long-term debt. During 2016, the City’s total bonded debt decreased by $1,317,631 to an end of
year total of $27,920,232 from a combination of refunding the 2007 TIF revenue bonds and 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,
2016, the City’s debt limit under this statute was $33,967,719 and $18,330,232 of the City’s
outstanding debt was of the type to which this limit applies.
City of Columbia Heights’ Long-Term Debt
2016 2015 2016 2015 2016 2015
General obligation bonds:
Repaid only with general taxes $18,005,000$18,460,000$ - $ - $18,005,000$18,460,000
Unamortized premium on above 325,232273,863 - - 325,232273,863
With other pledged revenues 1,482,6351,789,3051,777,3652,085,6953,260,0003,875,000
Revenue bonds 2,435,0002,549,0003,895,0004,080,0006,330,0006,629,000
Due to other government 5,200,0005,200,000 - - 5,200,0005,200,000
Compensated absences 1,084,3081,068,743171,106162,9421,255,4141,231,685
Net pension liability 17,798,5556,820,1251,937,0611,271,98919,735,6168,092,114
Postemployment benefits other
than pensions 250,246223,618 - - 250,246223,618
$46,580,976$36,384,654$7,780,532$7,600,626$54,361,508$43,985,280
Governmental Activities Business-Type Activities Totals
29
Management’s Discussion and Analysis
At December 31, 2016, 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, 2016, 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, 2016, 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 2047.
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 year end there was
long-term debt in the amount of $1,255,414, $250,246 and $19,735,616, 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 2016, the average annual unemployment rate for Anoka County, which includes the City, was
3.8%. This is an increase from a rate of 3.6% from the prior year. This compares to the average
annual 2016 state and national rates of 3.9% and 4.9% respectively. The Consumer Price Index in
the region compares favorably to national trends. These factors were considered when preparing the
City of Columbia Heights’ 2017 budget.
Requests For Information.
This financial report is designed to provide a general overview of the City of Columbia Heights’
finances for all those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the City of Columbia Heights, Finance Department, 590 40th Avenue NE, Columbia
Heights, Minnesota 55421-3878.
30
BASIC FINANCIAL STATEMENTS
31
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2016 Page 1 of 2
With Comparative Totals For December 31, 2015
GovernmentalBusiness-Type
ActivitiesActivities20162015
Current assets:
Cash and investments$28,822,880$4,674,796$33,497,676$38,040,009
Restricted asset: cash and investments with fiscal agent - 399,253399,253399,251
Receivables - current:
Accounts (net of allowance for uncollectibles)158,9461,755,7061,914,6521,716,878
Special assessments286,028 - 286,028451,700
Taxes 422,683 - 422,683426,356
Interest44,9808,39253,37256,467
Due from other governmental units - current575,11667,271642,3871,416,678
Internal balances(287,454)287,454 - -
Prepayments178,97592,031271,006254,453
Inventory - at cost45,5572,860,1252,905,6823,047,550
Real estate held for resale494,942 - 494,942738,689
Total current assets30,742,65310,145,02840,887,68146,548,031
Noncurrent assets:
Receivables - noncurrent:
Special assessments1,931,748 - 1,931,7481,994,655
Loans6,682,630 - 6,682,6306,684,050
Capital assets (net of accumulated depreciation):
Land5,148,2492,349,2137,497,4627,497,462
Buildings13,715,6073,853,21317,568,82017,848,748
Equipment2,154,619723,7592,878,3783,059,758
Infrastructure15,336,8119,800,09925,136,91022,888,559
Construction in process11,916,880511,98512,428,8657,718,690
Total noncurrent assets 56,886,54417,238,26974,124,81367,691,922
Total assets 87,629,19727,383,297115,012,494114,239,953
Deferred outflows of resources:
Related to pensions 11,390,335804,68912,195,0241,490,406
Totals
Primary Government
Assets:
The accompanying notes are an integral part of these financial statements.
32
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2016 Page 2 of 2
With Comparative Totals For December 31, 2015
GovernmentalBusiness-Type
ActivitiesActivities20162015
Current liabilities:
Accounts payable$242,679$550,058$792,737$1,649,346
Accrued salaries and withholdings payable374,31988,024462,343388,228
Contracts payable - retained percentage370,46922,590393,059235,563
Due to other governmental units225,935459,780685,7151,516,328
Unearned revenue217,106 - 217,106214,247
Accrued interest payable325,30498,421423,725459,380
Deposits6,431 - 6,43114,980
Compensated absences payable76,98512,14989,13492,375
Bonds payable1,047,635527,3651,575,0001,329,000
Total current liabilities2,886,8631,758,3874,645,2505,899,447
Noncurrent liabilities:
Compensated absences payable1,007,323158,9571,166,2801,139,310
Other postemployment benefits payable250,246 - 250,246223,618
Bonds payable - noncurrent21,200,2325,145,00026,345,23227,908,863
Due to other governmental units5,200,000 - 5,200,0005,200,000
Net pension liability17,798,5551,937,06119,735,6168,092,114
Total noncurrent liabilities45,456,3567,241,01852,697,37442,563,905
Total liabilities48,343,2198,999,40557,342,62448,463,352
Deferred inflows of resources:
Related to pensions2,087,528237,8252,325,3531,109,822
Net investments in capital assets29,429,29911,965,15741,394,45639,096,956
Restricted for:
Debt service1,580,529571,8522,152,3811,708,229
Tax increment purposes933,732 - 933,732858,712
Other purposes2,661,604 - 2,661,6042,677,783
Unrestricted13,983,6216,413,74720,397,36821,815,505
Total net position$48,588,785$18,950,756$67,539,541$66,157,185
Totals
Liabilities:
Net position:
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Program Revenues
Charges For
ExpensesServices
Functions/Programs
Primary government:
Governmental activities:
General government$2,239,601$289,303
Public safety 7,786,457670,142
Public works 3,664,041273,698
Culture and recreation2,982,919240,331
Community development877,622835,977
Interest on long-term debt958,465 -
Total governmental activities18,509,1052,309,451
Business-type activities:
Water 2,535,1332,961,086
Sewer 1,770,5381,836,908
Refuse 1,860,6021,867,504
Storm sewer 490,608399,604
Liquor 8,274,3548,468,098
14,931,23515,533,200
Total primary government$33,440,340$17,842,651
The accompanying notes are an integral part of these financial statements.
34
Statement 2
OperatingCapital
Grants andGrants andBusiness-Type
ContributionsContributionsGovernmentalActivities20162015
$ - $ - ($1,950,298)$ - ($1,950,298)($1,922,433)
499,319145,849(6,471,147) - (6,471,147)(5,061,207)
1,119,332929,748(1,341,263) - (1,341,263)(1,351,524)
18,134918,228(1,806,226) - (1,806,226)(2,428,098)
- - (41,645) - (41,645)(92,835)
- - (958,465) - (958,465)(948,493)
1,636,7851,993,825(12,569,044)0(12,569,044)(11,804,590)
- - - 425,953425,953362,562
- 70,645 - 137,015137,01577,891
99,454 - - 106,356106,356239,342
- - - (91,004)(91,004)581,071
- - - 193,744193,744274,755
99,45470,6450772,064772,0641,535,621
$1,736,239$2,064,470(12,569,044)772,064(11,796,980)(10,268,969)
General revenues:
Property taxes10,752,430 - 10,752,43010,512,483
Tax increment collections556,880 - 556,880491,639
Grants and contributions not
restricted to specific programs1,588,094 - 1,588,0941,682,480
Unrestricted investment earnings232,03640,670272,706404,905
Gain on sale of capital assets used
in governmental activities9,226 - 9,226247,247
Transfers422,365(422,365) - -
Special item - - - (927,142)
Total general revenues, transfers, and
special items13,561,031(381,695)13,179,33612,411,612
Change in net position991,987390,3691,382,3562,142,643
Net position - January 1, as previously reported47,596,79818,560,38766,157,18571,502,280
Prior period adjustment - - - (7,487,738)
Net position - January 1, as restated47,596,79818,560,38766,157,18564,014,542
Net position - December 31$48,588,785$18,950,756$67,539,541$66,157,185
Totals
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
35
CITY OF COLUMBIA HEIGHTS, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
General Fund
Municipal State Aid
Street Fund
Capital Equipment
Replacement
General Gov't
Capital
Improvements PIR
Fund
Assets
Cash and investments$7,724,070$727,862$4,088,316$464,029
Receivables:
Accounts45,504 - - -
Special assessments - - - 1,636,188
Taxes380,377 - - -
Loans - - - -
Interest14,850 - 7,400300
Due from other governmental units95,233359,326 - 80,231
Interfund receivable35,304 - 165,000 -
Prepayments109,841 - - -
Real estate held for resale - - - 45,600
Total assets$8,405,179$1,087,188$4,260,716$2,226,348
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable$92,838$25,185$5,022$40,362
Accrued salaries and withholdings payable310,2375,681 - 1,004
Contracts payable - retained percentage29,6773,695 - 72,349
Due to other governmental units120,440 - - 100,000
Interfund payable - - - -
Unearned revenue156,368 - - -
Deposits100 - - 6,331
Total liabilities709,66034,5615,022220,046
Deferred inflows of resources:
Unavailable revenue251,29215,000 - 1,613,910
Total deferred inflows of resources251,29215,00001,613,910
Fund balance:
Nonspendable109,841 - - -
Restricted - 1,037,627 - -
Committed - - 4,255,694392,392
Assigned105,000 - - -
Unassigned7,229,386 - - -
Total fund balances7,444,2271,037,6274,255,694392,392
Total liabilities, deferred inflows
of resources, and fund balances$8,405,179$1,087,188$4,260,716$2,226,348
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.
36
Statement 3
Capital Building
Library Fund
HRA (Component
Unit) Parkview Villa
North & South Fund
TIF Huset Park Area
Fund
Other Governmental
FundsInterfund Eliminations
Total
Governmental
Funds
$818,039 $1,029,129 $719,329 $10,137,499 $ - $25,708,273
- - - 113,442 - 158,946
- - - 581,588 - 2,217,776
- - 12,224 30,082 - 422,683
- 6,585,000 - 97,630 - 6,682,630
3,100 1,900 800 13,230 - 41,580
- - - 40,316 - 575,106
- - - 326,515 (361,819)165,000
- - - 2,852 - 112,693
- - - 449,342 - 494,942
$821,139 $7,616,029 $732,353 $11,792,496 ($361,819)$36,579,629
$619 $2,328 $4,193 $40,657 $ - $211,204
- - - 44,300 - 361,222
264,748 - - - - 370,469
- - - 5,495 - 225,935
- - - 361,819 (361,819) -
- - - 52,353 - 208,721
- - - - - 6,431
265,367 2,328 4,193 504,624 (361,819)1,383,982
- 6,585,000 3,675 589,224 - 9,058,101
0 6,585,000 3,675 589,224 0 9,058,101
- - - 2,852 - 112,693
- 1,028,701 724,485 3,792,125 - 6,582,938
555,772 - - 7,113,452 - 12,317,310
- - - - - 105,000
- - - (209,781) - 7,019,605
555,772 1,028,701 724,485 10,698,648 0 26,137,546
$821,139 $7,616,029 $732,353 $11,792,496 ($361,819)$36,579,629
$26,137,546
47,125,432
3,858,101
2,473,650
(31,005,944)
$48,588,785
The accompanying notes are an integral part of these financial statements.
37
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
General Fund
Municipal State
Aid Street Fund
Capital
Equipment
Replacement
General Gov't
Capital Improvements
PIR Fund
Revenues:
Taxes$8,751,484$ - $ - $ -
Tax increment collections - - - -
Special assessments - - - 943,630
Licenses and permits240,722 - - -
Intergovernmental986,4781,228,302222,539 -
Charges for services579,8481,395 - 3,954
Fines and forfeitures92,419 - - -
Investment income:
Interest and dividends118,955 - 64,28010,412
Change in fair value(47,156) - (23,300)(1,100)
Other revenues17,821 - - 2,348
Total revenues10,740,571 1,229,697 263,519 959,244
Expenditures:
Current:
General government1,926,330 - - -
Public safety5,403,356 - 28,895 -
Public works1,595,265208,396 - 528,711
Culture and recreation1,621,019 - - -
Community development - - - -
Capital outlay:
General government - - - -
Public safety - - 182,696 -
Public works65,841595,93616,950477,962
Culture and recreation16,513 - 44,109 -
Community development - - - -
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Issuance costs - - - -
Developer incentives - - - -
Total expenditures10,628,324 804,332 272,650 1,006,673
Revenues over (under) expenditures112,247 425,365 (9,131)(47,429)
Other financing sources (uses):
Transfers in445,854 - 13,332300,000
Transfers out(125,776)(477,525) - (421,693)
Bonds issued - - - -
Bond premium - - - -
Sale of capital assets - - 13,598 -
Total other financing sources (uses)320,078 (477,525)26,930 (121,693)
Net change in fund balance432,325 (52,160)17,799 (169,122)
Fund balance - January 17,011,9021,089,7874,237,895561,514
Fund balance - December 31$7,444,227$1,037,627$4,255,694$392,392
The accompanying notes are an integral part of these financial statements.
38
Statement 4
Capital Building
Library Fund
HRA (Component
Unit) Parkview Villa
North & South Fund
TIF Huset Park Area
Fund
Other Governmental
Funds
Interfund
Eliminations
Total Governmental
Funds
$ - $ - $ - $2,007,021$ - $10,758,505
- - 363,167191,704 - 554,871
- - - 105,296 - 1,048,926
- - - 431,278 - 672,000
600,000 - - 951,989 - 3,989,308
- - 107,325977,704 - 1,670,226
- - - 12,226 - 104,645
25,71817,7974,920100,080 - 342,162
(9,900)(5,900)(1,350)(38,120) - (126,826)
94,6191,330 - 106,060 - 222,178
710,437 13,227 474,062 4,845,238 0 19,235,995
- - 8,727172,598 - 2,107,655
- - - 32,706 - 5,464,957
- - - - - 2,332,372
- - - 984,597 - 2,605,616
- 4,777 - 680,403 - 685,180
- - - 25,260 - 25,260
- - - - - 182,696
- - - 119,173 - 1,275,862
6,195,499 - - 28,320 - 6,284,441
- - - 506,447 - 506,447
- - 2,549,000761,670 - 3,310,670
- - 134,804775,782 - 910,586
- - 107,325 - - 107,325
- - 52,18039,466 - 91,646
6,195,499 4,777 2,852,036 4,126,422 0 25,890,713
(5,485,062)8,450 (2,377,974)718,816 0 (6,654,718)
- - - 839,529(1,163,018)435,697
- - - (226,941)1,163,018(88,917)
- - 2,435,000 - - 2,435,000
- - 79,890 - - 79,890
- - - 270,938 - 284,536
0 0 2,514,890 883,526 0 3,146,206
(5,485,062)8,450 136,916 1,602,342 0 (3,508,512)
6,040,8341,020,251587,5699,096,306 - 29,646,058
$555,772$1,028,701$724,485$10,698,648$0$26,137,546
The accompanying notes are an integral part of these financial statements.
39
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40
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
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)($3,508,512)
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.5,790,603
The net effect of various miscellaneous transactions involving capital assets, such as
sales, trade-ins and abandonments was a decrease in net position.(2,937)
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.824,301
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.30,925
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.(1,943,446)
In the governmental funds, revenues are reported in the year available as current resources.
Whereas in the statement of activities, revenues are reported in the year earned.(238,836)
The net revenues (expenses) of certain activities of internal service funds are reported within the
governmental activities in the statement of activities.39,889
Change in net position of governmental activities (Statement 2)$991,987
The accompanying notes are an integral part of these financial statements.
41
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2016
Assets:Water Utility FundSewer Utility Fund
Current assets:
Cash and cash equivalents $350,028 $948,242
Restricted asset: cash and cash equivalents with fiscal agent - -
Receivables:
Accounts (net of allowance for uncollectibles)651,111485,337
Interest 1,6301,622
Due from other governmental units - current14,781 -
Prepayments - 87,776
Inventory - at cost 8,609 -
Total current assets1,026,159 1,522,977
Noncurrent assets:
Capital assets:
Land 45,22336,586
Construction in progress 511,985 -
Buildings 1,305,172403,659
Equipment 542,691980,241
Infrastructure 9,451,1696,677,171
Total capital assets 11,856,240 8,097,657
Less: accumulated depreciation(5,194,664)(4,703,176)
Net capital assets6,661,5763,394,481
Total noncurrent assets6,661,5763,394,481
Total assets 7,687,7354,917,458
Deferred outflows of resources:
Related to pensions 108,819108,819
Liabilities:
Current liabilities:
Accounts payable 24,146104,882
Accrued salaries and withholdings payable21,5726,020
Due to other governmental units365,403 -
Interfund payable 131,000 -
Contracts payable 17,9304,660
Accrued interest payable 6,0272,191
Unearned revenue - -
Compensated absences payable - current1,0712,824
Bonds payable - current 185,75435,000
Total current liabilities752,903 155,577
Noncurrent liabilities:
Compensated absences payable - noncurrent14,01136,954
Bonds payable - noncurrent 645,000392,288
Net pension liability 261,951261,951
Total noncurrent liabilities920,962 691,193
Total liabilities 1,673,865846,770
Deferred inflows of resources:
Related to pensions 32,16132,161
Net position:
Net investments in capital assets5,830,8222,967,193
Restricted 205,25139,946
Unrestricted 54,4551,140,207
Total net position$6,090,528$4,147,346
Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
42
Statement 6
Business-Type Activities - Enterprise Funds
Refuse Utility FundStorm Sewer Utility Fund Liquor Fund Total Enterprise FundsInternal Service Funds
$1,418,481 $498,627 $731,092 $3,946,470 $3,842,933
- - 399,253 399,253 -
510,358 108,846 54 1,755,706 -
2,700 1,060 80 7,092 4,700
50,342 - 2,148 67,271 10
- - - 87,776 70,535
- - 2,851,516 2,860,125 45,557
1,981,881 608,533 3,984,143 9,123,693 3,963,735
- 260,690 2,006,714 2,349,213 15,779
- - - 511,985 -
56,000 - 3,915,062 5,679,893 1,978,957
112,893 340,692 436,380 2,412,897 486,425
- 2,667,144 - 18,795,484 -
168,893 3,268,526 6,358,156 29,749,472 2,481,161
(129,238)(1,084,271)(1,423,699)(12,535,048)(1,310,584)
39,655 2,184,255 4,934,457 17,214,424 1,170,577
39,655 2,184,255 4,934,457 17,214,424 1,170,577
2,021,536 2,792,788 8,918,600 26,338,117 5,134,312
31,500 28,637 418,095 695,870 240,548
133,765 1,697 277,523 542,013 39,520
3,382 4,791 42,180 77,945 23,176
- - 94,377 459,780 -
- 34,000 - 165,000 -
- - - 22,590 -
- 4,021 86,182 98,421 -
- - - - 8,385
287 153 6,124 10,459 78,675
- 111,611 195,000 527,365 -
137,434 156,273 701,386 1,903,573 149,756
3,752 2,000 80,123 136,840 1,029,440
- 407,712 3,700,000 5,145,000 -
75,828 68,935 1,006,445 1,675,110 579,051
79,580 478,647 4,786,568 6,956,950 1,608,491
217,014 634,920 5,487,954 8,860,523 1,758,247
9,310 8,464 123,568 205,664 71,094
39,655 1,664,932 1,438,710 11,941,312 1,170,577
- 124,505 202,150 571,852 -
1,787,057 388,604 2,084,313 5,454,636 2,374,942
$1,826,712 $2,178,041 $3,725,173 17,967,800 $3,545,519
982,956
$18,950,756
The accompanying notes are an integral part of these financial statements.
43
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
Water Utility FundSewer Utility FundRefuse Utility Fund
Operating revenues:
Charges for services $154,846$1,835,930$1,867,504
Charges for sales, net of discounts 2,796,155 - -
Total operating revenues 2,951,001 1,835,930 1,867,504
Operating expenses:
Cost of sales, services and goods sold 1,426,460 974,360 1,641,239
Operating expense 812,551 657,181 211,631
Depreciation 271,546 132,103 3,341
Total operating expenses 2,510,557 1,763,644 1,856,211
Net income (loss) from operations 440,444 72,286 11,293
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 12,608 12,743 21,500
Change in fair value (4,750)(4,908)(8,600)
Intergovernmental - 70,645 99,454
Miscellaneous revenues 10,085 978 -
Interest and fiscal charges (22,256)(5,543) -
Total nonoperating revenues (expenses)(4,313)73,915 112,354
Net income (loss) before transfers and capital contributions 436,131 146,201 123,647
Transfers in - 132,288 -
Transfers out (90,396)(222,683)(78,098)
Total transfers and capital contributions (90,396)(90,395)(78,098)
Change in net position 345,735 55,806 45,549
Net position - January 1 5,744,7934,091,540 1,781,163
Net position - December 31 $6,090,528 $4,147,346 $1,826,712
Reconciliation to Statement of Activities:
Amount reported above
Amounts reported for business-type activities in the statement of activities are different because:
Adjustment to reflect consolidation of internal service fund activities
Amounts reported on the statement of activities
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
Statement 7
Storm Sewer Utility
FundLiquor FundInterfund EliminationsTotal Enterprise FundsInternal Service Funds
$399,160$ - $ - $4,257,440$1,613,484
- 8,468,098 - 11,264,253 100,767
399,160 8,468,098 0 15,521,693 1,714,251
- 6,392,090 - 10,434,149 1,692,755
372,208 1,538,422 - 3,591,993 -
105,833 148,091 - 660,914 85,569
478,041 8,078,603 0 14,687,056 1,778,324
(78,881)389,495 0 834,637 (64,073)
8,776 351 - 55,978 38,100
(3,320)(30) - (21,608)(15,100)
- - - 170,099 -
444 - - 11,507 -
(12,901)(191,806) - (232,506) -
(7,001)(191,485)0 (16,530)23,000
(85,882)198,010 0 818,107 (41,073)
132,288 - (264,576) - 88,917
(136,946)(158,818)264,576 (422,365)(13,332)
(4,658)(158,818)0 (422,365)75,585
(90,540)39,192 0 395,742 34,512
2,268,581 3,685,981 - 17,572,058 3,511,007
$2,178,041 $3,725,173 $0 $17,967,800 $3,545,519
Change in
Net Position Transfers
395,742$ (422,365)$
(5,373)-
$390,369 ($422,365)
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
45
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
Water Utility FundSewer Utility Fund
Cash flows from operating activities:
Cash received from customers$2,782,545$1,695,012
Cash received from interfund goods and services provided - -
Cash paid to suppliers for goods and services(1,622,657)(1,266,446)
Cash payments to employees for services(478,747)(165,714)
Net cash flows provided by (used in) operating activities681,141 262,852
Cash flows from noncapital financing activities:
Transfers in - 132,288
Transfers out (90,396)(222,683)
Miscellaneous revenue
Increases in compensated absences payable - -
Decreases in compensated absences payable - -
Intergovernmental - 70,645
Net cash flows provided by (used in) noncapital financing activities(90,396)(19,750)
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,007,907)(459,965)
Capital contribution - 132,288
Principal payments - bonds (170,042)(35,000)
Interest and fiscal charges (22,912)(5,623)
Net cash flows provided by (used in) capital and related financing activities (1,200,861)(368,300)
Cash flows from investing activities:
Investment income
Interest and dividends 13,268 13,281
Change in fair value (4,750)(4,908)
Net cash flows provided by (used in) investing activities 8,518 8,373
Net increase (decrease) in cash and cash equivalents (601,598)(116,825)
Total cash and cash equivalents - January 1 951,626 1,065,067
Total cash and cash equivalents - December 31 350,028 948,242
(Less) Restricted asset: cash and cash equivalents with fiscal agent - December 31 - -
Cash and cash equivalents - December 31 $350,028 $948,242
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
46
Statement 8
Page 1 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundTotal Enterprise FundsInternal Service Funds
$1,826,227$366,834$8,466,763$15,137,381$ -
- - - - 1,714,251
(1,852,932)(244,884)(6,714,403)(11,701,322)(917,678)
(93,707)(96,741)(921,402)(1,756,311)(611,024)
(120,412)25,209 830,958 1,679,748 185,549
- 132,288 - 264,57688,917
(78,098)(136,946)(158,818)(686,941)(13,332)
-
- - - - 625,733
- - - - (612,532)
99,454 - - 170,099 -
21,356 (4,658)(158,818)(252,266)88,786
- 11,839 - (1,456,033) -
- - - 132,288 -
- (235,576)(185,000)(625,618) -
- (13,095)(195,608)(237,238) -
0 (236,832)(380,608)(2,186,601)0
21,3008,86632157,03637,800
(8,600)(3,320)(30)(21,608)(15,100)
12,700 5,546 291 35,428 22,700
(86,356)(210,735)291,823 (723,691)297,035
1,504,837709,362838,5225,069,4143,545,898
1,418,481 498,627 1,130,345 4,345,723 3,842,933
- - (399,253)(399,253) -
$1,418,481$498,627$731,092$3,946,470$3,842,933
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, 2016
Water Utility FundSewer Utility Fund
Reconciliation of operating income (loss) to
net cash flows from operating activities
Operating income (loss)$440,444$72,286
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 271,546132,103
Miscellaneous revenues 10,085978
Changes in assets and liabilities:
(Increase) decrease in accounts receivable(67,838)(50,078)
(Increase) decrease in due from other governmental units(14,781) -
(Increase) decrease in prepayments - (6,579)
(Increase) decrease in inventory, at cost(598) -
(Increase) decrease in deferred pension outflows(85,239)(85,239)
Increase (decrease) in accounts payable13,317103,496
Increase (decrease) in accrued
salaries and withholdings payable13,880(2,454)
Increase (decrease) in contracts payable - retained percentage6,138(6,018)
Increase (decrease) in due to other governmental units(6,239) -
Increase (decrease) in compensated absences payable(2,391)1,540
Increase (decrease) in deferred revenue - -
Increase (decrease) in net pension liability90,51390,513
Increase (decrease) in deferred pension inflows12,30412,304
Total adjustments 240,697190,566
Net cash flows from operating activities$681,141$262,852
Noncash capital and related financing activities:$ - $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
48
Statement 8
Page 2 of 2
Refuse Utility Fund
Storm Sewer Utility
FundLiquor FundTotal Enterprise FundsInternal Service Funds
$11,293($78,881)$389,495$834,637($64,073)
3,341105,833148,091660,91485,569
- 444 - 11,507 -
(14,956)(10,622)267(143,227)(10)
(1,798) - (1,602)(18,181) -
- - - (6,579)5,149
- - 134,167133,569(188,650)
(24,523)(22,148)(327,345)(544,494)8,300
(124,423)1,55075,65469,59414,472
6252,2555,91320,2193,493
- - - 120 -
- - 7,6941,455 -
1,4872,0144,8427,4923,036
- - - - 244
25,10721,764346,638574,535290,632
3,4353,00047,14478,18727,387
(131,705)104,090441,463845,111249,622
($120,412)$25,209$830,958$1,679,748$185,549
$ - $ - $ - $ - $ -
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
49
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION Statement 9
FIDUCIARY FUNDS
December 31, 2016
Assets:
Cash and investments $11,880
Due from other governmental units 486
Total assets $12,366
Liabilities:
Accounts payable $11,266
Due to other governmental units 1,100
Total liabilities $12,366
The accompanying notes are an integral part of these financial statements.
50
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Columbia Heights, Minnesota (the City) was incorporated in 1898. A Council composed of an elected
mayor and four council members governs the City. The Council exercises legislative authority and determines all
matters of policy. The Manager, appointed by the Council, is responsible for the proper administration of all affairs
relating to the City.
The financial statements of the City have been prepared in conformity with generally accepted accounting principles
as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a
summary of the significant policies.
A. FINANCIAL REPORTING ENTITY
The component units discussed below are included in the City’s reporting entity because of the significance
of their operational or financial relationships with the City.
The City has two component units - the Housing and Redevelopment Authority (HRA) and the Economic
Development Authority (EDA). The HRA and the EDA are considered component units because the
governing boards are substantively the same as that of the City and because the City is in a relationship of
financial benefit or burden with each of the entities. It is this criterion that results in the HRA and EDA
being reported as a blended component unit.
The financial position and results of operations of the HRA and the EDA component units are presented
using the blended method. These blended component units, although legally separate entities, are, in
substance, part of the City’s operations. The component units consist of Nonmajor Governmental Funds
using the modified accrual basis of accounting, and as such are included in the other governmental funds.
Separate financial statements for the HRA and EDA are not prepared.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the statement of changes
in net position) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not included among program revenues are reported
instead as general revenues.
51
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
52
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The Capital Improvement – 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 TIF Huset Park Area Fund was established to account for the revenues and expenditures of the
Huset Park Tax Increment Financing District.
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.
53
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
water, sewer, refuse, storm sewer and liquor enterprise funds and of the internal service funds are charges
to customers for sales and services. Liquor fund sales are reported net of discounts. No other fund
provides discounts. For 2016, liquor sales discounts were $214,620. Operating expenses for enterprise
funds and internal service funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
D. BUDGETARY DATA
The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing
on January 1 of the following year. At least one special Council meeting is conducted to obtain public
comments as required by the State Truth in Taxation Law.
The City Council annually adopts budgets prior to January 1 for the General Fund and the following special
revenue funds:
Nonmajor special revenue funds:
Cable Television Fund
Public Safety Grant Fund
Library Fund
Planning and Inspections Fund
After School Programs Fund
Special Projects 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, except for investments in any external investment pools
that meet GASB 79 requirements, which are stated at amortized cost. Investment income is allocated to the
54
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
individual funds on the basis of applicable cash balance participation by each fund using an average of
monthly beginning cash and investment balances.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable
in the fund with the deficit, until adequate resources are received. The interfund balances are eliminated on
the government-wide financial statements.
Investments are stated at fair value within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the
assets. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted
prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on
quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3
investments are valued using inputs that are unobservable. A detail of the fair value hierarchy of
investments held by the City are disclosed in Note 2.
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
55
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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. Sales of real estate held for resale are recognized as charges
for services in the government-wide statements and sale of capital assets in the fund financials.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first-
out (FIFO) method.
56
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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. Prepaid items are reported using the
consumption method and recorded as expenditures/expenses at the time of consumption.
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 acquisition 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
Buildings (and building components)10 - 50 years
Equipment 3 - 15 years
Infrastructure 20 - 60 years
Capital Assets
Land $1
Buildings 25,000
Equipment 5,000
Infrastructure 250,000
Capitalization Threshold
57
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
retirements. In accordance with the provisions of Statement of Government Accounting Standards No. 16,
Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to
receive sick pay benefits.
Typically, resources from the compensated absences fund are used to liquidate the liability for compensated
absences.
M. LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities or proprietary fund type statement of net position. Bond premiums are
deferred and amortized over the life of the bonds.
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.
58
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
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.
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 of resources (revenue) until that time. Accordingly, the item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds
report unavailable revenue from the following sources: property taxes, special assessments, due from other
governmental units, and loans receivable.
Pensions: For the purposes of measuring the net pension liability, deferred outflows/inflows of resources,
and pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to/deletions from PERA’s fiduciary net position have been determined
on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Plan investments are
reported at fair value.
59
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City has an additional item which qualifies for reporting in this category. The item, deferred pension
resources, is reported only in the statements of net positions and results from actuarial calculations.
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
($31,005,944) difference are as follows:
Accrued interest payable ($325,304)
Other postemployment benefits payable (250,246)
Bonds payable (22,247,867)
Net Pension Liability (8,182,527)
Adjustment to fund balance - total governmental
funds - to arrive at net position of governmental activities ($31,005,944)
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 ($5,790,603) difference are as follows:
Total capital outlay in government fund financial statements $8,274,706
Adjustments for items not capitalized (128,260)
Adjustments to the carrying value of real estate held for resale (348,790)
Depreciation expense (2,007,053)
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$5,790,603
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
60
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
however. This amount is the net effect of these differences in the treatment of long-term debt.” The details
of this ($824,301) difference are as follows:
Debt issued:
Revenue bonds($2,435,000)
Plus premium on debt issued($79,890)
Principal repayments:
General obligation bonds761,670
Revenue bonds2,549,000
Amortization of deferred premiums28,521
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.$824,301
Another element of that reconciliation states, “In the governmental funds, revenues are reported in the year
available as current resources. Whereas in the statement of activities, revenues are reported in the year
earned.” The details of this ($238,836) difference are as follows:
Unavailable revenue - General property taxes:
At December 31, 2015 ($264,479)
At December 31, 2016 258,403
Unavailable revenue - Tax increment taxes:
At December 31, 2015 (2,189)
At December 31, 2016 4,198
Unavailable revenue - Special assessments:
At December 31, 2015 (2,430,268)
At December 31, 2016 2,195,500
Unavailable revenue - Due from other government:
At December 31, 2015 (15,000)
At December 31, 2016 15,000
Unavailable revenue - Loan receivable:
At December 31, 2015 (6,585,000)
At December 31, 2016 6,585,000
Adjustment to net changes in fund balances -
total governmental funds - to arrive at
changes in net position of governmental activities.($238,836)
T. STATEMENT OF CASH FLOWS
For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an
original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the
City-wide cash and investment management pool is considered to be cash equivalents.
61
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, 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, 2016 are
as follows:
Carrying
Amount At
Fair Value
Investments$28,752,048
Deposits5,148,751
Cash on hand8,010
(Less) fidcuiary fund cash(11,880)
$33,896,929
Cash and investments$33,497,676
Restricted asset: cash and investments with fiscal agent399,253
$33,896,929
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by
the City Council, all of which are members of the Federal Reserve System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond or collateral. The
market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Clerk/Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
(1) United States government treasury bills, treasury notes and treasury bonds;
(2) Issues of United States government agencies and instrumentalities as quoted by a recognized industry
quotation service available to the government entity;
(3) General obligation securities of any state or local government with taxing powers which is rated “A” or
better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
(4) Unrated general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
(5) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc., or Standard & Poor’s Corporation; and
(6) Time deposits that are fully insured by the Federal Deposit Insurance Corporation.
62
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Deposits as of December 31, 2016 are as follows:
Carrying
Bank Amount At
BalancesFair Value
Demand deposits$1,092,520$617,460
Time deposits4,531,2924,531,292
Total$5,623,812$5,148,752
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 f) 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.
d) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest
quality, and maturing in 270 days or less.
e) 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.
f) 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.
63
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Investments as of December 31, 2016 are as follows:
Weighted
Average CarryingPercentage
MaturitiesAmount Atof Fair Value
In YearsFair ValuePer Issuer
Notes issued by U.S. government agencies:
Federal Home Loan Bank5.4$2,981,16010.4%
Federal National Mortgage Association9.3734,3202.6%
Federal Home Loan Mortgage Corporation5.87,615,08526.5%
Federal Farm Credit Bank4.5500,0001.7%
Negotiable Certificates of Deposit*1.710,999,16838.3%
Money market mutual funds:
Evergreen U.S. Government FundLess than 1yr2,024,4077.0%
RBC US Government FundLess than 1yr2,554,5308.9%
Other issuers*Less than 1yr1,343,3784.6%
Total investments28,752,048$ 100.0%
* from various issuers each less than 5% of fair value
The City has the following recurring fair value measurements as of December 31, 2016:
Notes issued by U.S. government agencies and negotiable certificates of deposit are values using
Level 2 inputs, significant other observable inputs.
Money market mutal funds are investments not categorized.
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, 2016, 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, 2016, 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, 2016.
64
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
d) Custodial credit risk – Custodial credit risk is the risk that in the event of a failure of the counterparty,
the City will not be able to recover the value of its investment securities that are in the possession of an
outside party. As of December 31, 2016, investments in securities are held by the City’s three broker-
dealers in the City’s name, with $500,000 of those securities at each broker-dealer insured by SIPC.
Each broker-dealer has provided additional protection by providing additional insurance. This
additional insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts.
Investments in money markets are not evidenced by securities that exist in physical or book entry
form, and therefore are not subject to custodial credit risk disclosures.
Note 3 RECEIVABLES
Significant receivables balances not expected to be collected within one year of December 31, 2016 are as follows:
Total
Capital2008A TaxableCapital
ImprovementGO Housing ImpImprovement
PIR FundArea Bonds FundDevelopment
Special assessments receivable$ - $1,424,091$512,932$ - $1,931,748
Loan receivable6,585,000 - - 97,630 6,682,630
Total $6,585,000$1,424,091 $512,932 $97,630$8,614,378
Major Funds
HRA (Component
Unit) Parkview Villa
North & South
Nonmajor Funds
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 due December 31, 2047. 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.
Note 4 UNAVAILABLE REVENUES
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds were as follows:
PropertyTaxSpecial LoanDue from
TaxesIncrementAssessmentsReceivableOther Govt'sTotal
Major Funds:
General Fund$251,292$ - $ - $ - $ - $251,292
Municipal State Aid Street Fund - - - - 15,00015,000
Capital Improvements - PIR Funds - - 1,613,910 - - 1,613,910
TIF Huset Park Area - 3,675 - - - 3,675
HRA Parkview Villa North & South - - - 6,585,000 - 6,585,000
Nonmajor Governmental Funds:7,112524581,588 - - 589,224
Total unavailable revenue258,4044,1992,195,4986,585,00015,0009,058,101
65
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 is as follows:
Beginning Ending
BalanceAdditionsDeletionsBalance
Governmental activities:
Capital assets - not depreciated:
Land $5,148,249$ - $ - $5,148,249
Construction in progress 5,951,091 7,750,319 (1,784,530) 11,916,880
Total capital assets not being depreciated 11,099,340 7,750,319 (1,784,530) 17,065,129
Capital assets - being depreciated:
Buildings 23,244,762 - - 23,244,762
Equipment 8,648,953 281,274 (112,068) 8,818,159
Infrastructure 31,084,239 1,550,593 - 32,634,832
Total capital assets being depreciated 62,977,954 1,831,867 (112,068) 64,697,753
Less accumulated depreciation for:
Buildings 8,967,357 561,799 - 9,529,155
Equipment 6,309,747 462,923 (109,131) 6,663,540
Infrastructure 16,246,009 1,052,012 - 17,298,021
Total accumulated depreciation 31,523,113 2,076,734 (109,131) 33,490,716
Capital assets being depreciated - net 31,454,841 (244,867) (2,937) 31,207,037
Governmental activities capital assets - net 42,554,181 7,505,452 (1,787,467) 48,272,166
Business-type activities:
Capital assets - not depreciated:
Land 2,349,213 - - 2,349,213
Construction in progress 1,767,599 1,344,179 (2,599,793) 511,985
Total capital assets not being depreciated 4,116,812 1,344,179 (2,599,793) 2,861,198
Capital assets - being depreciated:
Buildings 5,240,838 439,054 - 5,679,892
Equipment 2,563,324 123,690 (21,956) 2,665,058
Infrastructure 16,646,584 2,148,900 - 18,795,484
Total capital assets being depreciated 24,450,746 2,711,644 (21,956) 27,140,434
Less accumulated depreciation for:
Buildings 1,669,497 157,182 - 1,826,679
Equipment 1,842,772 120,485 (21,956) 1,941,299
Infrastructure 8,596,254 399,131 - 8,995,385
Total accumulated depreciation 12,108,523 676,798 (21,956) 12,763,363
Capital assets being depreciated - net 12,342,223 2,034,846 014,377,071
Business-type activities capital assets - net 16,459,035 3,379,025 (2,599,793) 17,238,269
Total capital assets - net $59,013,216$10,884,477($4,387,260)65,510,435
66
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Depreciation expense was charged to functions/programs of the primary government – governmental activities as
follows:
Governmental activities:
General government $36,540
Public safety 549,613
Public works 1,126,751
Culture and recreation 294,148
Depreciation on capital assets held by governmental internal service activities
is charged to each function based on use:
Municipal Service Center - Garage 69,682
Total depreciation expense - capital assets held by governmental activities $2,076,734
Depreciation expense was charged to functions/programs of the primary government - business-type activities as
follows:
Business-type activities:
Water $271,545
Sewer 132,103
Refuse 3,341
Storm sewer 105,832
Liquor 148,090
Depreciation on capital assets held by business-type internal service activities
is charged to each function based on use:
Information systems15,887
Total depreciation expense - capital assets held by business-type activities $676,798
67
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
INTERFUND RECEIVABLES, PAYABLES
Individual fund interfund receivable and payable balances at December 31, 2016 are as follows:
Fund ReceivablePayable
Major Funds:
General Fund $35,304$ -
Capital Equipment Replacement General Gov't 165,000 -
Water - 131,000
Storm Sewer - 34,000
Nonmajor funds 326,515361,819
Total $526,819$526,819
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, 2016, reflect lending arrangements to cover deficit
cash balances at year end. Substantially all such other amounts are expected to be repaid within one year.
68
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
INTERFUND TRANSFERS
Interfund transfers during the year ended December 31, 2016 are as follows:
Total
Governmental
CapitalCapital Capital StormOther
Imprvmts GenImp PIREquip - GenSewerSewerGovtlInternal
GeneralGovt BldgFundFundUtilityUtilityFundsService
Transfers out:
Major funds:
Governmental:
General $ - $23,000$ - $ - $ - $ - $13,859$88,917$125,776
Municipal State Aid Street - - 300,000 - - - 177,525 - 477,525
Capital Imprvmts PIR - - - - - - 421,693 - 421,693
Enterprise:
Water 90,396 - - - - - - - 90,396
Sewer 90,395 - - - - 132,288 - - 222,683
Storm 4,658 - - - 132,288 - - - 136,946
Refuse 78,098 - - - - - - - 78,098
Liquor 108,818 - - - - - 50,000 - 158,818
Nonmajor funds:
Other governmental funds73,489 - - - - - 153,452 - 226,941
Internal service funds - - - 13,332 - - - - 13,332
Total $445,854$23,000$300,000$13,332$132,288$132,288$816,529$88,917$1,952,208
Governmental Enterprise
Transfers In
Major Funds Nonmajor Funds
2016 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 and equipment replacement 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.
69
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, are as follows:
Pledged revenue,
if any, in addition toOriginal InterestIssueFinal Balance
general property taxesIssueRateDateMaturityEnd of Year
Governmental activities:
GO Public safety center series 2008BNone10,000,0004.30-4.55%8/6/20082/1/2038$8,740,000
GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/20382,390,000
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%7/1/20092/1/2021350,000
Taxable GO housing imprvmt area series 2008ASpecial assessments975,0005.00-6.05%7/16/20082/1/2024620,000
GO Public facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019180,000
GO Improvement series 2013ASpecial assessments235,0000.40-2.50%11/21/20132/1/2024185,000
GO Improvement series 2013A - RefundingSpecial assessments328,0210.40-2.50%11/21/20132/1/2020147,635
Business-type activities:
GO Public facilities series 2009AUtility revenues325,0002.00-4.75%7/1/20092/1/2019120,000
GO Utility revenue series 2013AUtility revenues1,685,0000.40-2.50%11/21/20132/1/20241,475,000
GO Improvement series 2013A - RefundingUtility revenues291,9790.40-2.50%11/21/20132/1/2024102,365
GO Utility revenue series 2013A - RefundingUtility revenues235,0000.40-2.50%11/21/20132/1/202480,000
Total general obligation bonds outstanding $21,265,000
70
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
As of December 31, 2016, the annual debt service requirements to maturity for general obligation bonds are as
follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2017$927,635$741,159$332,365$31,388
2018885,000708,486225,00027,450
2019880,000674,581230,00023,502
2020875,000640,404190,00019,758
2021895,000605,414190,00016,242
2022840,000571,140200,00012,143
2023875,000537,510205,0007,534
2024905,000502,328205,0002,562
2025725,000471,611 - -
2026755,000445,594 - -
2027790,000418,353 - -
2028810,000389,088 - -
2029-20334,605,0001,442,000 - -
2034-20384,720,000468,785 - -
Total$19,487,635$8,616,453$1,777,365$140,579
Governmental ActivitiesBusiness-Type Activities
REVENUE BONDS
The City issues revenue bonds for which the City pledges only the income derived from the acquired or constructed
assets or redevelopment to pay the debt service. All of the bonds are serial bonds, which require semiannual
payments of principal and/or interest from the date the bonds are issued. There are a number of limitations and
restrictions contained in the bond indentures. The City is in compliance with all significant limitations and
restrictions. Revenue bonds outstanding at December 31, 2016 are as follows:
Original InterestIssueFinal Balance
Pledged revenueIssueRateDateMaturityEnd of Year
Governmental activities:
Tax increment revenue series 2016 - refundingTax increment$2,435,0002.28-3.009%6/30/20162/15/2032$2,435,000
Business-type activities:
Public facility lease revenue series 2007BLiquor revenues5,040,0004.50-5.00%9/19/20072/1/20303,895,000
Total revenue bonds outstanding $6,330,000
CURRENT REFUNDING
On July 7, 2016, the Columbia Heights Economic Development Authority issued the $2,435,000 Tax Increment
Revenue Refunding Bonds, Series 2016 to refund the Tax Increment Revenue Bonds, Series 2007. The entire
amount of the reissue proceeds plus an additional $135,000 of existing tax increment was used for early redemption
of the 2007 Tax Increment bonds.
71
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City refunded the 2007 Tax Increment bonds to reduce interest rates. The refunding yields a net present value
benefit of $711,425.
As of December 31, 2016, the annual debt service requirements to maturity for revenue bonds are as follows:
Fiscal Year
Ending
December 31PrincipalInterestPrincipalInterest
2017$120,000$73,898$195,000$184,393
2018125,00065,466205,000175,239
2019125,00063,873215,000165,474
2020130,00061,957230,000155,128
2021130,00059,747240,000144,020
2022135,00057,295250,000132,260
2023135,00054,156265,000119,900
2024140,00050,200280,000106,680
2025145,00045,925295,00092,592
2026145,00040,850310,00077,770
2027155,00034,850325,00062,212
2028-2032950,00082,0251,085,00083,125
Total$2,435,000$690,242$3,895,000$1,498,793
Governmental ActivitiesBusiness-Type Activities
72
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, and for the year then ended, is as follows:
Related BondAs PercentageRelated Bond
PledgedActivityPrincipalof RevenuePrincipalPledged
RevenueFinancedand InterestPledgedand InterestRevenue
Project-specificStreet
special assessmentsimprovements$541,52995%$200,319$421,693
Project-specificPrivate
special assessmentsredevelopment779,62295%98,320105,916
Project-specificPublic/Private
tax incrementredevelopment3,520,81383%2,761,198433,703
Water, sewer and storm-Utility system
sewer net revenuesimprovements1,917,94449%343,129700,940
Annual appropriationMunicipal store
of liquor net revenuesconstruction5,393,793100%377,942389,733
Total RemainingCurrent Year
73
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2016 is as follows:
Beginning EndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
General obligation bonds repaid only with general taxes$18,460,000$ - ($455,000)$18,005,000$610,000
General obligation bonds with other pledged revenues 1,789,305 - (306,670)1,482,635317,635
Revenue bonds 2,549,0002,435,000(2,549,000)2,435,000120,000
Unamortized premium/discount 273,863 79,890(28,521)325,232 -
Total bonds payable 23,072,1682,514,890(3,339,191)22,247,8671,047,635
Due to other governments 5,200,000 - - 5,200,000 -
Compensated absences 1,068,743628,097(612,532)1,084,30876,985
Net pension liability 6,820,12513,062,659(2,084,229)17,798,555 -
Postemployment benefits other than pensions 223,618 74,554(47,926)250,246 -
Total governmental activity long-term liabilities $36,384,654$16,280,200($6,083,878)$46,580,976$1,124,620
Business-type activities:
Bonds payable:
General obligation bonds with other pledged revenues $2,085,695$ - ($308,330)$1,777,365$332,365
Revenue bonds 4,080,000 - (185,000)$3,895,000195,000
Total bonds payable 6,165,695 - (493,330)5,672,365527,365
Compensated absences 162,942112,907(104,743)171,10612,149
Net pension liability 1,271,989790,900(125,828)1,937,061 -
Total business-type activity long-term liabilities $7,600,626$903,807($723,901)$7,780,532$539,514
For governmental activities, compensated absences are generally liquidated by the compensated absences fund, an
internal service fund; other postemployment benefit obligations and net pension liability are mainly liquidated by the
General Fund.
See Note 3 for detail of Due to Other Government.
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.
Revenue Bonds of this type were issued in 2016. As of December 31, 2016 there was an estimated aggregate
principal amount payable of approximately $24,740,000.
74
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 9 FUND EQUITY
A. CLASSIFICATIONS
At December 31, 2016, the City has various fund equities through legal restrictions and City Council
authorizations. A summary of such classifications are as follows:
MunicipalCap Eqp Capital HRA (ComponentHuset Park
GeneralState AidReplacement BuildingUnit) ParkviewAreaNonmajor
FundStreetGen GovtPIRLibraryVilla No & SoTIF/BondGov't Total
2016 Fund Balance
Nonspendable
Prepaid items $109,841$ - $ - $ - $ - $ - $ - $2,852$112,693
Total nonspendable 109,841 0 0 0 0 0 0 2,852 112,693
Restricted for:
Debt service - - - - - - - 1,907,498 1,907,498
Streets - 1,037,627 - - - - - - 1,037,627
Tax Increment - - - - - - 724,485 1,289,351 2,013,836
Police Forfeiture - - - - - - - 46,631 46,631
Grant sponsored Rec Programs - - - - - - - 138,476 138,476
Capital Improvements/Replacement - - - - - - - 355,115 355,115
Housing & Redevelopment - - - - - 1,028,701 - 55,054 1,083,755
Total restricted 01,037,627 0 0 01,028,701 724,485 3,792,125 6,582,938
Committed for:
Capital Improvements/Replacement - - 4,255,694 392,392 555,772 - - 2,922,181 8,126,039
Cable TV Operations - - - - - - - 645,436 645,436
Library Operations - - - - - - - 562,525 562,525
Redevelopment - - - - - - - 2,983,310 2,983,310
Total committed 0 04,255,694 392,392 555,772 0 07,113,452 12,317,310
Assigned for:
2017 Appropriation 105,000 - - - - - - - 105,000
Unassigned:7,229,386 0 0 0 0 0 0(209,781) 7,019,605
Total 7,444,227$ 1,037,627$ 4,255,694$ 392,392$ 555,772$ 1,028,701$ 724,485$ 10,698,648$ 26,137,546$
B. DEFICIT FUND BALANCE
The following funds had fund deficits as of December 31, 2016. The City will finance these deficits
through collections of tax increment and other revenues in future years.
Nonmajor Funds:
Debt Service Funds:
TIF Central Valu Center($2,394)
TIF Scattered Site (207,387)
($209,781)
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
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016, 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.
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
76
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 members 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 2016. The City of Columbia Heights was required to contribute 7.50% for Coordinated Plan
members in calendar year 2016. The City of Columbia Heights’ contributions to the GERF for the year
ended December 31, 2016, were $406,405. 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 2016. The
City of Columbia Heights was required to contribute 16.20% of pay for PEPFF members in calendar year
2016. The City of Columbia Heights’ regular contributions to the PEPFF for the year ended December 31,
2016, were $500,328. 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, 2016, the City of Columbia Heights reported a liability of $6,893,459 for its proportionate
share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to a
State of Minnesota contribution to the fund in 2016. The State of Minnesota is considered a non-employer
contribution entity and the state’s contribution meets the definition of a special funding situation. The net
pension liability was measured as of June 30, 2016, 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, 2015, through June
30, 2016, relative to the total employer contributions received from all of PERA’s participating employers.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
At June 30, 2015, the City of Columbia Heights’ proportion share was 0.0849 % which was a decrease of
0.0024 % from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City of Columbia Heights recognized pension expense of
$856,453 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an
additional $ 26,842 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s 2016 contribution to the GERF.
At December 31, 2016, 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:
Deferred
Outflows of
Resources
Deferred
Inflow of
Resources
Differences between expected and
actual economic experience -$ 559,901$
Changes in actuarial assumptions 1,349,745 -
Differences between projected and
actual investment earnings 1,308,408 -
Changes in proportions - 286,453
Contributions paid to PERA subsequent
to the measurement date 205,510 -
Total 2,863,663$ 846,354$
$205,510 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, 2017. Other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
Year endedPension Expense
December 31:Amount
2017 $463,401
2018 463,400
2019 635,995
2020 249,003
2021 -
Thereafter -
1,811,799$
PEPFF Pension Costs
At December 31, 2016, the City of Columbia Heights reported a liability of $12,842,157 for its
proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June
30, 2016, 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
78
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
City’s contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2015, through June 30, 2016, relative to the total employer contributions received from all of
PERA’s participating employers. At June 30, 2016, the City’s proportion was 0.32 % which was an
increase of 0.006 % from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City of Columbia Heights recognized pension expense of
$2,233,495 for its proportionate share of the PEPFF’s pension expense. The City also recognized $28,800
for the year ended December 31, 2016, as revenue (and an offsetting reduction in net pension liability) for
its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. Legislation
passed in 2013 required the State of Minnesota to begin contributing to the PEPFF each year, starting in
fiscal year 2015.
At December 31, 2016, the City of Columbia Heights reported its proportionate share of the PEPFF’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflow of
Resources
Differences between expected and
actual economic experience -$ 1,473,239$
Changes in actuarial assumptions 7,067,600 -
Differences between projected and
actual investment earnings 1,959,802 -
Changes in proportions 56,127 5,760
Contributions paid to PERA subsequent
to the measurement date 247,832 -
Total 9,331,361$ 1,478,999$
$247,832 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, 2017. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as follows:
Year endedPension Expense
December 31:Amount
2017 $1,634,618
2018 1,634,616
2019 1,634,616
2020 1,476,238
2021 1,224,442
Thereafter -
7,604,530$
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016, actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors and disabilitants were based on RP-2014 tables for GERF and RP-2000 tables for Police and Fire
males or females, as appropriate, with slight adjustments. Cost of living benefit increases for retirees are
assumed to be 1% per year for all future years for GERF and PEPFF.
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of actuarial
experience studies. The experience study in the GERF was completed in 2015. The experience study for
PEPFF was for the period July 1, 2004, through June 30, 2009.
The following changes in actuarial assumptions occurred in 2016:
General Employees Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and
2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll
growth and 2.50% for inflation.
Police and Fire Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and
2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed
from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
80
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return 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
geometric real rates of return for each major asset class are summarized in the following table:
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%
E. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2016 was 7.50%, a reduction from the 7.9%
used in 2015. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employers will be made at rates set in Minnesota Statutes. Based on these
assumptions, the fiduciary net position of the General Employees Fund was projected to be available to
make all projected future benefit payments of current plan members. 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.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended
June 30, 2057, when projected benefit payments exceed the funds’ projected fiduciary net position, benefit
payments were discounted at the municipal bond rate of 2.85% based on an index of 20-year general
obligation bonds with an average AA credit rating at the measurement date, An equivalent single discount
rate of 5.60% was determined that produced approximately the same present value of projected benefits
when applied to all years of projected benefits as the present value of projected benefits using 7.50%
applied to all years of projected benefits through the point of asset depletion and 2.85% after.
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CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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:
1% Higher 6.50%9,790,755$ 4.60%17,977,315$
Current Discount Rate7.50%6,893,459 5.60%12,842,157
1% Lower 8.50%4,506,876 6.60%8,646,342
General Employees FundPolice and Fire Fund
Sensitivity of Net Pension Liability at Current Single Discount Rate (In thousands)
G. PENSION EXPENSE
Pension expense recognized by the City for the fiscal year ended December 31, 2016 is as follows:
GERF 883,295$
PEPFF 2,233,495
Total 3,116,790$
H. 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.
82
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 2016, state aid was contributed to the plan. This state aid revenue and the related contribution
expense/expenditure of $97,868 are recognized in the accompanying financial statements for the year
ended December 31, 2016.
B. COUNCIL MEMBERS
Certain council members of the City are covered by the Public Employees Defined Contribution Plan
(PEDCP), a multiple-employer deferred compensation plan administered by the Public Employees
Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan under section 401(a) of
the Internal Revenue Code and all contributions by or on behalf of the employees are tax deferred until
time of withdrawal.
The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses,
therefore, there is no future liability to the employer. Minnesota Statutes, Chapter 353D.03, specifies plan
provisions, including the employee and employer contribution rates for those qualified personnel who elect
to participate. An eligible elected official who decides to participate contributes 5% of salary, which is
matched by the elected official’s employer. Employer and employee contributions are combined and used
to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund.
For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of
1% (.0025) of the assets in each member's account annually.
Pension expense for the year is equal to contributions made. Total contributions made by the City of
Columbia Heights for the last three fiscal years were:
Required Rate for
Employees and
For the Year Ended:EmployeeEmployerEmployeeEmployerEmployers
December 31, 20161,470$ 1,470$ 5%5%5%
December 31, 20151,482 1,482 5%5%5%
December 31, 20141,860 1,860 5%5%5%
Contribution AmountPercentage of Covered Payroll
83
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 2016, 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 on the next page for the current year.
The State of Minnesota, solely at its option, reimburses the City annually for a portion of the City’s costs
under the disabled public safety retiree provision. Historically, these reimbursements have approximated
60% of the pay-as-go cost of this plan provision. These reimbursements are reported as revenue in the year
received, separate from OPEB expenses/expenditures.
84
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016
Annual required contribution$79,088
Interest on net OPEB obligation6,709
Adjustment to annual required contribution(11,243)
Annual OPEB cost74,554
Contributions made by City(47,926)
Increase in net OPEB obligation26,628
Net OPEB obligation-beginning of year223,618
Net OPEB obligation-end of year$250,246
Comparative OPEB information for the curent and three prior years includes the following:
Percentage of
Year EndedAnnual OPEBAnnual OPEBNet OPEB
December 31CostCost ContributedObligation
2013 $76,467 39%$152,154
2014 76,003 49%191,151
2015 75,212 57%223,618
2016 74,554 64%250,246
85
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. FUNDED STATUS AND FUNDING PROGRESS
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%
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 remaining amortization period is 28 years
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 TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
A. 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.
86
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
B. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT
The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment
Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to
encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate-
income housing, and economic development within the City. TIF captures the increase in tax capacity and
property taxes from development or redevelopment to provide funding for the related project.
The City has four tax increment pay-as-you-go agreements. The agreements are not a general obligation of
the City and are payable solely from available tax increment. Accordingly, these agreements are not
reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows:
TIF District K2, Barnick:
Issued in 1994 in the principal sum of $50,417 with no interest. Principal and interest shall be paid on
August 1, 1995 and each February 1 and August 1 thereafter to and including February 1, 2017. Payments
are payable solely from available tax increment derived from the developed/redeveloped property and paid
to the City. The pay-as-you-go note provides for payment to the developer when tax increment received in
the prior six months is greater than $3,681. The payment reimburses the developer for land
acquisition. Principal and interest payments will be completed February 1, 2017. The City shall have no
obligation to pay any unpaid balance of principal or accrued interest that may remain after the final
payment on February 1, 2017. The current year abatement (TIF note payments) was $0, as not enough
increment was collected. At December 31, 2016, the principal amount outstanding on the note was
$40,672.
TIF District R8, Crest View Project:
Issued in 2005 in the principal sum of $780,000 with an interest rate of 11% per annum. Principal and
interest shall be paid on November 1, 2005 and each February 1 and August 1 thereafter to and including
February 1, 2023. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the
developer equal to 89.78% of all tax increment received in the prior six months. The payment reimburses
the developer for land acquisition, site preparation, demolition & removal, soil corrections & remediation,
utility work, sidewalks, curb & gutter work, earthwork, and landscaping. Principal and interest payments
will be completed February 1, 2023. The current year abatement (TIF note payments) amounted to
$28,667. At December 31, 2016, the principal amount outstanding on the note was $732,801.
TIF District R8, Townhouse View Project:
Issued in 2002 in the principal sum of $175,100 with an interest rate of 9.5% per annum. Principal and
interest shall be paid on August 1, 2003 and each February 1 and August 1 thereafter to and including
February 1, 2023. Payments are payable solely from available tax increment derived from the
developed/redeveloped property and paid to the City. The pay-as-you-go note provides for payment to the
developer equal to 89.78% of all tax increment received in the prior six months. The payment reimburses
the developer for land acquisition, site preparation, demolition & removal, soil corrections & remediation,
utility work, sidewalks, curb & gutter work, earthwork, and landscaping. Principal and interest payments
will be completed February 1, 2023. The current year abatement (TIF note payments) amounted to
$10,799. At December 31, 2016, the principal amount outstanding on the note was $175,100.
87
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
TIF District T6, Huset Park Development:
Issued in 2007 in the principal sum of $6,650,000 plus allowable increase of $598,782 with an interest rate
of 6.00% per annum. Principal and interest shall be paid on February 15, 2009 and each August 15 and
February 15 thereafter to and including February 15, 2032. Payments are payable solely from available tax
increment derived from the developed/redeveloped property and paid to the City. The pay-as-you-go note
provides for payment to the developer equal to all tax increment received in the prior six months that is in
excess of the bond payment BTS paying agent fee and $16,500 per payment period for additional base
TIF. The payment reimburses the developer for relocation, demolition, environmental costs, grading & site
preparation, onsite roads & utilities, economic development authority costs, land acquisition, and interest
on any listed items to the extent such cost represents interest on any valid evidence of indebtedness under
federal income tax principles. Principal and interest payments will be completed February 15, 2032. The
City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain
after the final payment on February 15, 2032. The current year abatement (TIF note payments) amounted
to $4,193. At December 31, 2016, the principal amount outstanding on the note was $7,248,782.
Note 14 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League
of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is
subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through
Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation,
the City is not subject to a deductible.
Property, casualty and automobile insurance coverage are provided through a pooled self-insurance
program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial
companies for claims in excess of various amounts. The City retains risk for the deductible portions.
These deductibles are considered immaterial to the financial statements.
The City 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.
88
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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
CONSTRUCTION
The City has entered into several contractual commitments for construction projects that are in process at
yearend. At December 31, 2016, the City’s obligation for such projects was approximately $673,947.
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 beginning
balances in the December 31, 2014 financial statements. Changes related to these standards are reflected in the
financial statements and schedules and related disclosures are included in Note 10.
89
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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:
Net Position
January 1, 2015 Net Position
as PreviouslyPrior PeriodJanuray 1, 2015
ReportedRestatement (1)as Restated
Fund
Governmental activities $52,959,104 ($6,275,906)$46,683,198
Business-type activities $18,543,176 ($1,408,017)$17,135,159
Business-type activities
Water Utility $5,616,744 ($163,330)$5,453,414
Sewer Utility 4,244,614 (163,330)4,081,284
Refuse Utility 1,639,010 (48,322)1,590,688
Storm Sewer Utility 1,728,641 (44,941)1,683,700
Liquor 4,194,628 (628,603)3,566,025
Internal Service 1,119,539 (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
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. 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.
90
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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.
Statement No. 82 Pension Issues – an amendment of GASB Statement No. 67, No. 68 and No. 73. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2016, except for the
requirements of this Statement for the selection of assumptions in a circumstance in which an employer’s
pension liability is measured as of a date other than the employer’s most recent fiscal year-end. In that
circumstance, the requirements for the selection of assumptions are effective for that employer in the first
reporting period in which the measurement date of the pension liability is on or after June 15, 2017.
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods beginning
after June 15, 2017.
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.
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92
REQUIRED SUPPLEMENTARY INFORMATION
93
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted AmountsFinal Budget2015
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$8,641,452$8,641,452$8,751,484$110,032$8,781,533
Licenses and permits221,800221,800240,72218,922213,408
Intergovernmental905,300935,482986,47850,9961,666,889
Charges for services555,800575,491579,8484,357592,599
Fines and forfeitures125,000125,00092,419(32,581)96,551
Investment income:
Interest and dividends75,00075,000118,95543,95572,948
Change in fair value - - (47,156)(47,156)30,339
Other revenues13,12016,92017,82190123,950
Total revenues10,537,472 10,591,145 10,740,571 149,426 11,478,217
Expenditures:
General government:
Council 148,305148,305155,214(6,909)137,176
Manager 450,654450,654448,2102,444430,982
Clerk 101,529101,52995,6285,90150,346
Legal 175,579175,579191,958(16,379)166,589
Finance 826,200826,200786,46739,733800,894
Assessing 126,518126,518123,8152,703122,792
General government buildings 157,300157,300125,03832,262132,556
Contingencies 31,000 31,000 - 31,00040,376
Total general government 2,017,085 2,017,085 1,926,330 90,755 1,881,711
Public safety:
Police 4,145,5514,181,7683,907,480274,2883,983,332
Fire 1,496,1001,513,5561,495,87617,6801,509,576
Capital outlay - - - - 1,557
Total public safety 5,641,651 5,695,324 5,403,356 291,968 5,494,465
Public works:
Engineering 381,718381,718460,293(78,575)307,926
Maintenance 1,298,9811,298,9811,134,972164,0091,226,965
Capital outlay - - 65,841(65,841)95,188
Total public works 1,680,699 1,680,699 1,661,106 19,593 1,630,079
Other departments:
Parks and recreation 1,623,8711,623,8711,621,0192,8521,483,765
Capital outlay 36,362 36,36216,51319,84959,590
Total recreation 1,660,233 1,660,233 1,637,532 22,701 1,543,355
Total expenditures 10,999,668 11,053,341 10,628,324 425,017 10,549,610
Revenues over (under) expenditures (462,196)(462,196)112,247574,443928,607
2016
94
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, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted AmountsFinal Budget2015
ActualPositive Actual
OriginalFinalAmounts(Negative)Amounts
Other financing sources (uses):
Transfers in$441,196$441,196$445,854$4,658$417,106
Transfers out(23,000)(23,000)(125,776)(102,776)(1,707,631)
Total other financing sources (uses)418,196 418,196 320,078 (98,118)(1,290,525)
Net change in fund balance($44,000)($44,000)432,325$476,325 (361,918)
Fund balance - January 17,011,9027,373,820
Fund balance - December 31$7,444,227 $7,011,902
2016
95
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE HEALTH PLAN
For The Year Ended December 31, 2016
Actuarial
Accrued UAAL as a
ActuarialActuarialLiability (AAL)Unfunded Percentage
ValuationValue of - ProjectedAAL Funded Coveredof Covered
Date AssetsUnit Credit(UAAL)Ratio Payroll Payroll
1/1/2008$ - $257,138$257,1380%$6,242,6414%
1/1/2011 - 775,238775,2380%6,923,10811%
1/1/2014 - 1,042,6041,042,6040%6,881,03315%
96
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
City's
State's ProportionateCity's
Proportionate Share of the NetProportionate
City'sCity'sShare (Amount) Pension Liability andShare of the
ProportionateProportionateof the Net the State's ProportionateNet PensionPlan Fiduciary
ShareShare (Amount)Pension Share of the NetLiability as aNet Position as
(Percentage) ofof the NetLiabilityPension LiabilityPercentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionAssociatedAssociated with CoveredCoveredof the Total
DateEndingLiabilityLiability (a) with City (b)City (a+b)Payroll (c)Payroll ((a+b)/c)Pension Liability
June 30, 2015December 31, 20150.0873%$4,524,339$ - $4,524,339$5,065,17389.3%78.2%
June 30, 2016December 31, 20160.0849%6,893,45990,0226,983,4815,265,065132.6%68.9%
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 13
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
StatutorilyContributions inContribution Contributions as a
Required Relation to theDeficiency CoveredPercentage of
Fiscal YearContributionStatutorily Required(Excess)Payroll Covered
Ending (a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$388,736$388,736 $ -$5,183,147 7.5%
December 31, 2016406,405 406,405 -5,418,727 7.5%
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.
98
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Proportionate Share
Proportionateof the Net PensionPlan Fiduciary
ProportionShare (Amount)Liability as aNet Position as
(Percentage) ofof the NetPercentage of itsa Percentage
Measurement Fiscal Yearthe Net PensionPensionCoveredCoveredof the Total
DateEndingLiabilityLiability (a)Payroll (b)Payroll (a/b)Pension Liability
June 30, 2015December 31, 20150.3140%$3,567,778$2,816,543126.7%86.6%
June 30, 2016December 31, 20160.3200%12,842,1573,080,202416.9%63.9%
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 Statement 15
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
StatutorilyContributions inContribution Contributions as a
Required Relation to theDeficiency CoveredPercentage of
Fiscal YearContributionStatutorily Required(Excess)Payroll Covered
Ending (a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015$478,016$478,016 $ -$2,950,716 16.2%
December 31, 2016500,328 500,328 -3,088,446 16.2%
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.
100
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2016
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
Public Safety Grants
Library Fund
After School Programs Fund
Special Projects Fund
Planning and Inspections Fund
Economic Development Authority (Component Unit):
Economic Development Authority Administration Fund
Expenditures in excess of appropriations in the Planning and Inspections Fund actual expenditures exceeded
budget by $1,158. However, actual revenue exceeded budget by $118,289.
Note B PENSION INFORMATION
PERA – General Employees Retirement Fund
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and
2.5% per year thereafter to 1.0% per year for all future years.
- The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed
from 7.9% to 7.5%.
- Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed
future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth
and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2016 Changes
Changes in Actuarial Assumptions:
- The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and
2.5% thereafter to 1.0% per year for all future years.
- The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed
from 7.9% to 5.6%.
- The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
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102
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
103
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104
NONMAJOR GOVERNMENTAL FUNDS
105
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106
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.)
107
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING BALANCE SHEET Statement 16
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
Total
Nonmajor
Special DebtCapital Governmental
Assets RevenueServiceProject Funds
Cash and investments $3,397,765$2,691,379$4,048,355$10,137,499
Receivables:
Accounts 113,442 - - 113,442
Special assessments - 581,588 - 581,588
Taxes 10,91319,169 - 30,082
Loans - - 97,630 97,630
Interest 5,000 1,830 6,400 13,230
Due from other governmental units 40,316 - - 40,316
Interfund receivable 3,174233,04590,296 326,515
Prepayments 2,852 - - 2,852
Real estate held for resale 43,708297,506108,128 449,342
Total assets $3,617,170$3,824,517$4,350,809$11,792,496
Liabilities and Fund Balance
Liabilities:
Accounts payable $11,851$19,118$9,688 $40,657
Accrued salaries and withholdings payable 44,300 - - 44,300
Due to other governmental units 3,823 - 1,672 5,495
Interfund payable 125,600236,219 - 361,819
Unearned revenue 52,353 - - 52,353
Total liabilities 237,927255,33711,360 504,624
Deferred inflows of resources:
Unavailable revenue 7,112582,112 - 589,224
Total deferred inflows of resources 7,112582,112 0 589,224
Fund balance:
Nonspendable 2,852 - - 2,852
Restricted 595,2763,196,849 - 3,792,125
Committed 2,774,003 - 4,339,449 7,113,452
Unassigned - (209,781) - (209,781)
Total fund balance 3,372,1312,987,0684,339,44910,698,648
Total liabilities, deferred inflows
of resources, and fund balance $3,617,170$3,824,517$4,350,809$11,792,496
108
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 17
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
Total
Nonmajor
Special Debt CapitalGovernmental
RevenueServiceProject Funds
Revenues:
Taxes $1,092,788$914,233$ - $2,007,021
Tax increment collections - 191,704 - 191,704
Special assessments - 105,296 - 105,296
Licenses and permits 431,278 - - 431,278
Intergovernmental 145,848414,415391,726 951,989
Charges for services 736,528 - 241,176 977,704
Fines and forfeitures 12,226 - - 12,226
Investment income:
Interest and dividends 39,100 10,28050,700 100,080
Change in fair value (15,500)(2,520)(20,100)(38,120)
Other revenues 105,957 - 103 106,060
Total revenues 2,548,225 1,633,408 663,605 4,845,238
Expenditures:
Current:
General government 95,372 - 77,226 172,598
Public safety 14,820 - 17,886 32,706
Culture and recreation 969,597 - 15,000 984,597
Community development 589,631 24,95165,821 680,403
Capital outlay:
General government 25,260 - - 25,260
Public works - - 119,173 119,173
Culture and recreation - - 28,320 28,320
Community development 22,444426,33957,664 506,447
Debt service:
Principal retirement - 761,670 - 761,670
Interest and fiscal charges - 775,782 - 775,782
Developer incentives - 39,466 - 39,466
Total expenditures 1,717,124 2,028,208 381,090 4,126,422
Revenues over (under) expenditures 831,101 (394,800)282,515 718,816
Other financing sources (uses):
Transfers in 153,452421,693264,384 839,529
Transfers out (126,941) - (100,000)(226,941)
Sale of capital assets - 245,83625,102 270,938
Total other financing sources (uses)26,511 667,529 189,486 883,526
Net change in fund balance 857,612 272,729 472,001 1,602,342
Fund balance - January 1 2,514,5192,714,3393,867,448 9,096,306
Fund balance - December 31 $3,372,131$2,987,068$4,339,449$10,698,648
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110
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 police and fire 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 & Inspection 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.
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.
111
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2016
Cable
Television Fund
225
Police
Forfeiture Fund
265
Public Safety
Grants Fund
272
Library Fund
240
Assets
Cash and investments $531,316 $64,605$ - $593,506
Receivables:
Accounts 113,442 - - -
Taxes - - - -
Interest 1,000 - - 700
Due from other governmental units - - 40,272 -
Interfund receivable - - - -
Prepayments - - - 2,852
Real estate held for resale - - - -
Total assets $645,758 $64,605 $40,272 $597,058
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $280$ - $ - $7,843
Accrued salaries and withholdings payable 42 - 4,968 20,015
Due to other governmental units - - - 3,823
Interfund payable - - 35,304 -
Unearned revenue - 17,974 - -
Total liabilities 322 17,974 40,272 31,681
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources 0000
Fund balance:
Nonspendable - - - 2,852
Restricted - 46,631 - -
Committed 645,436 - - 562,525
Total fund balance 645,436 46,631 0 565,377
Total liabilities, deferred inflows
of resources, and fund balance $645,758 $64,605 $40,272 $597,058
112
Statement 18
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
$141,260$153,194$201,672$698,833$456,797$101,342$455,240$3,397,765
- - - - - - - 113,442
- - - - - - 10,913 10,913
300 300 400 800 500 300 700 5,000
- - - - 44 - - 40,316
- - - - - - 3,174 3,174
- - - - - - - 2,852
- - - - - 43,708 - 43,708
$141,560 $153,494 $202,072 $699,633 $457,341 $145,350 $470,027 $3,617,170
$2,218$ - $451$ - $493$ - $566 $11,851
866 - - - 12,978 - 5,431 44,300
- - - - - - - 3,823
- - - - - 90,296 - 125,600
- - - 34,379 - - - 52,353
3,084 0 45134,37913,47190,2965,997 237,927
- - - - - - 7,112 7,112
0000007,112 7,112
- - - - - - - 2,852
138,476153,494201,621 - - 55,054 - 595,276
- - - 665,254443,870 - 456,9182,774,003
138,476153,494201,621665,254443,87055,054456,9183,372,131
$141,560 $153,494 $202,072 $699,633 $457,341 $145,350 $470,027 $3,617,170
113
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, 2016
3
Cable
Television
Fund 225
Police
Forfeiture Fund
265
Public Safety
Grants Fund
272
Library Fund
240
Revenues:
Taxes $ - $ - $ - $813,999
Licenses and permits - - - -
Intergovernmental - - 145,848 -
Fees/program revenues 207,689 - - 12,191
Rents - - - -
Charges for services - - - -
Fines and forfeitures - - - 12,226
Investment income:
Interest and dividends 7,600 - - 5,300
Change in fair value (3,000) - - (2,100)
Other revenues:
Contributions - - - -
Miscellaneous 59,312 - - 685
Total revenues 271,601 0145,848842,301
Expenditures:
Personal services 3,638 - 145,848561,983
Supplies 808 - - 91,637
Other services and charges 90,926 - - 116,212
Capital outlay 25,260 - - -
Total expenditures 120,632 0145,848769,832
Revenues over (under) expenditures 150,969 0 0 72,469
Other financing sources (uses):
Transfers in - - - -
Transfers out (29,183) - - (13,979)
Total other financing sources (uses)(29,183)0 0 (13,979)
Net change in fund balance 121,786 0 0 58,490
Fund balance - January 1 523,650 46,631 - 506,887
Fund balance - December 31 $645,436 $46,631 $0 $565,377
114
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
$ - $ - $ - $ - $ - $ - $278,789$1,092,788
- - - - 431,278 - - 431,278
- - - - - - - 145,848
19,230 - - 389,185 - - 30628,325
- - - 90,032 - - - 90,032
- - - - - - 18,17118,171
- - - - - - - 12,226
2,3002,2003,0006,1004,2002,6005,80039,100
(900)(900)(1,200)(2,400)(1,700)(1,000)(2,300)(15,500)
- 17,75021,486 - - - - 39,236
- - 2,132 - 4,592 - - 66,721
20,63019,05025,418482,917438,3701,600300,4902,548,225
35,928 - - - 338,498 - 172,0021,257,897
2,20014,5206,116 - 3,909 - 1,025120,215
15,78930017,76817,23217,120 - 15,961291,308
- - - - - 22,444 - 47,704
53,91714,82023,88417,232359,52722,444188,9881,717,124
(33,287)4,2301,534465,68578,843(20,844)111,502831,101
- - - - 53,452100,000 - 153,452
- - - - (15,164) - (68,615)(126,941)
000038,288100,000(68,615)26,511
(33,287)4,2301,534465,685117,13179,15642,887857,612
171,763149,264200,087199,569326,739(24,102)414,0312,514,519
$138,476 $153,494 $201,621 $665,254 $443,870 $55,054 $456,918 $3,372,131
115
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted Amounts Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Franchise fees $188,000$188,000$207,689$19,689$203,357
Investment income:
Interest and dividends 7,9007,9007,600 (300)4,400
Change in fair value - - (3,000)(3,000)1,800
Other revenues:
Miscellaneous 35,00035,00059,31224,31222,500
Total revenues 230,900230,900271,60140,701232,057
Expenditures:
Personal services 5,8505,8503,6382,2122,699
Supplies - - 808 (808)465
Other services and charges 82,389107,38990,92616,46342,472
Capital outlay 16,70016,70025,260(8,560) -
Total expenditures 104,939129,939120,6329,30745,636
Revenues over expenditures 125,961100,961150,96950,008186,421
Other financing sources (uses):
Transfers out (29,183)(29,183)(29,183) - (367,614)
Net change in fund balance $96,778 $71,778 121,786$50,008 (181,193)
Fund balance - January 1 523,650 704,843
Fund balance - December 31 $645,436 $523,650
2016
116
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 21
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
20162015
Revenues:
Forfeitures $ - $14,398
Expenditures:
Supplies - 1,344
Revenues over expenditures 0 13,054
Fund balance - January 1 46,631 33,577
Fund balance - December 31 $46,631 $46,631
117
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PUBLIC SAFETY GRANTS FUND 272 Statement 22
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
Variance with
Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts (Negative)Amounts
Revenues:
Intergovernmental $169,412$169,412$145,848$23,564$49,945
Total revenues 169,412 169,412 145,848 23,56449,945
Expenditures:
Personal services 169,412169,412145,84823,56449,945
Total expenditures 169,412169,412145,84823,56449,945
Revenues over (under) expenditures - - - - -
Fund balance - January 1 - - - - -
Fund balance - December 31 $0 $0 $0 $0 $0
Budgeted Amounts
2016
118
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 23
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted Amounts Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes $813,999$813,999$813,999$ - $804,389
Charges for services 10,54710,54712,191 1,64410,510
Fines 15,00015,00012,226(2,774)13,118
Investment income:
Interest and dividends 5,000 5,000 5,300 3003,000
Change in fair value - - (2,100)(2,100)1,200
Other revenues:
Contributions 1,385 1,385 - (1,385) -
Miscellaneous - - 685 685 -
Total revenues 845,931 845,931 842,301 (3,630)832,217
Expenditures:
Personal services 610,607610,607561,98348,624528,587
Supplies 102,300102,30091,63710,66392,734
Other services and charges 119,045119,045116,212 2,83383,088
Total expenditures 831,952 831,952 769,832 62,120 704,409
Revenues over expenditures 13,979 13,979 72,469 58,490 127,808
Other financing sources (uses):
Transfers out (13,979)(13,979)(13,979) - (34,881)
Net change in fund balance $0 $0 58,490 $58,490 92,927
Fund balance - January 1 506,887 413,960
Fund balance - December 31 $565,377 $506,887
2016
119
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - AFTER SCHOOL PROGRAMS FUND 261 Statement 24
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
Variance with
Budgeted Amounts Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Program revenue $ - $ - $19,230$19,230$18,911
Investment income:
Interest and dividends - - 2,300 2,300 1,900
Change in fair value - - (900)(900)800
Total revenues - - 20,63020,63021,611
Expenditures:
Personal services 23,00023,00035,92812,92830,704
Supplies 3,000 3,000 2,200 (800)3,116
Other services and charges 18,00018,00015,789(2,211)16,571
Total expenditures 44,000 44,000 53,917 9,917 50,391
Revenues over (under) expenditures ($44,000)($44,000)(33,287)$10,713(28,780)
Fund balance - January 1 171,763 200,543
Fund balance - December 31 $138,476 $171,763
2016
120
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - RECREATION CONTRIBUTED PROJECTS FUND 881 Statement 25
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
20162015
Revenues:
Investment income:
Interest and dividends $2,200 $1,500
Change in fair value (900)600
Other revenue:
Contributions 17,750 18,215
Total revenues 19,050 20,315
Expenditures:
Supplies 14,520 16,936
Other services and charges 300 855
Total expenditures 14,820 17,791
Revenues over expenditures 4,230 2,524
Fund balance - January 1 149,264 146,740
Fund balance - December 31 $153,494 $149,264
121
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 26
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
20162015
Revenues:
Investment income:
Interest and dividends $3,000 $2,100
Change in fair value (1,200)800
Contributions 21,486 207
Miscellaneous 2,132 -
Total revenues 25,418 3,107
Expenditures:
Supplies 6,116 12,054
Other services and charges 17,768 39
Total expenditures 23,884 12,093
Revenues over (under) expenditures 1,534 (8,986)
Fund balance - January 1 200,087 209,073
Fund balance - December 31 $201,621 $200,087
122
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 27
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
Variance with
Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Fees/program revenue $ - $ - $389,185$389,185$9,893
Rents 25,00025,00090,03265,03286,402
Investment income:
Interest and dividends - - 6,100 6,100 2,100
Change in fair value - - (2,400)(2,400)800
Total revenues 25,00025,000482,917457,91799,195
Expenditures:
Other services and charges 25,00025,00017,232(7,768)19,347
Revenues over expenditures - - 465,685465,68579,848
Other financing sources (uses):
Transfers out - - - - (500,000)
Net change in fund balance $ - $ - 465,685$465,685(420,152)
Fund balance - January 1 199,569 619,721
Fund balance - December 31 $665,254 $199,569
2016
Budgeted Amounts
123
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - PLANNING AND INSPECTIONS FUND 201 Statement 28
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted Amounts Final Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Licenses and permits $237,201$317,201$431,278$114,077$413,139
Investment income:
Interest and dividends 2,4002,4004,2001,8002,100
Change in fair value - - (1,700)(1,700)800
Miscellaneous 4804804,5924,112984
Total revenues 240,081 320,081 438,370 118,289 417,023
Expenditures:
Personal services 263,707343,707338,4985,209258,992
Supplies 1,1501,1503,909(2,759)3,863
Other services and charges 13,51213,51217,120(3,608)15,991
Total expenditures 278,369 358,369 359,527 (1,158)278,846
Revenues over (under) expenditures (38,288)(38,288)78,843 117,131 138,177
Other financing sources (uses):
Transfers in 53,45253,45253,452 - -
Transfers out (15,164)(15,164)(15,164) - (13,756)
Total other financing sources (uses):38,28838,28838,288 - (13,756)
Net change in fund balance $0 $0 117,131 $117,131 124,421
Fund balance - January 1 326,739 202,318
Fund balance - December 31 $443,870 $326,739
2016
124
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SPECIAL REVENUE FUND - ANOKA COUNTY COMM DEV PROGRAMS FUND 202 Statement 29
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - ACTUAL
For The Year Ended December 31, 2016
With Comparative Amounts For The Year Ended December 31, 2015
20162015
Revenues:
Intergovernmental $ - $604,244
Investment income:
Interest and dividends 2,600 200
Change in fair value (1,000)100
Total revenues 1,600 604,544
Expenditures:
Capital outlay 22,444 349,601
Total expenditures 22,444 349,601
Revenues over expenditures (20,844)254,943
Other financing sources (uses):
Transfers in 100,000 -
Transfers out - (551,317)
Total other financing sources (uses)100,000 (551,317)
Net change in fund balance 79,156 (296,374)
Fund balance (deficit) - January 1 (24,102)272,272
Fund balance (deficit) - December 31 $55,054 ($24,102)
125
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 30
BUDGETARY COMPARISON SCHEDULE - ECONOMIC DEVELOPMENT AUTHORITY ADMINISTRATION FUND 204
(COMPONENT UNIT)
For The Year Ended December 31, 2016
With Comparative Actual Amounts For The Year Ended December 31, 2015
Variance with
Budgeted AmountsFinal Budget-2015
ActualPositiveActual
OriginalFinalAmounts(Negative)Amounts
Revenues:
Taxes$283,500$283,500$278,789($4,711)$260,067
Fees/program revenues505030(20)-
Charges for services - - 18,17118,171 -
Investment income:
Interest and dividends 3,5003,5005,8002,3003,100
Change in fair value 7,000 - (2,300)(2,300)1,200
Total revenues 294,050287,050300,49013,440264,367
Expenditures:
Personal services 213,097213,097172,00241,095176,373
Supplies 300 3001,025 (725)1,079
Other services and charges 13,20413,20415,961(2,757)12,888
Total expenditures 226,601226,601188,98837,613190,340
Revenues over expenditures 67,44960,449111,50251,05374,027
Other financing sources (uses):
Transfers out (68,615)(68,615)(68,615) - (13,756)
Net change in fund balance ($1,166)($8,166)42,887$51,05360,271
Fund balance - January 1 414,031 353,760
Fund balance - December 31 $456,918 $414,031
2016
126
NONMAJOR
DEBT SERVICE FUNDS
The City of Columbia Heights had the following kinds of Nonmajor Debt Service Funds during
the year:
Bond Debt Service Funds – are separate funds used to account for the revenues and expenditures
of each separate bond issue. 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.
127
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
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
GO Library
Bonds 2015A
Fund 346
Assets
Cash and investments $13,203$213,913$443,609$268,330$590,596$364,100
Receivables:
Taxes 49 - 3,135 3,159 - 6,644
Assessments - 581,588 - - - -
Interest 10 150 130 80 300 90
Interfund receivable - - - - - -
Real estate for resale - - - - - -
Total assets $13,262$795,651$446,874$271,569$590,896$370,834
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ - $ -
Interfund payable - - - - - -
Total liabilities 000000
Deferred inflows of resources:
Unavailable revenue - 581,588 - - - -
Total deferred inflows of resources 0581,588 0000
Fund balance:
Restricted 13,262214,063446,874271,569590,896370,834
Unassigned - - - - - -
Total fund balance 13,262214,063446,874271,569590,896370,834
Total liabilities, deferred inflows
of resources, and fund balance $13,262$795,651$446,874$271,569$590,896$370,834
..
128
Statement 31
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 Central Valu
Center Fund 374
TIF Scattered Site
Fund 391
Total Nonmajor Debt
Service Funds
$149,615$103,700$79,769$438,886$0$25,658$2,691,379
- 295 - 5,887 - - 19,169
- - - - - - 581,588
400200100370 - - 1,830
233,045 - - - - - 233,045
218,271 - - 79,235 - - 297,506
$601,331$104,195$79,869$524,378$0$25,658$3,824,517
$ - $ - $19,118$ - $ - $ - $19,118
- 780 - - 2,394233,045236,219
078019,11802,394233,045255,337
- 202 - 322 - - 582,112
0202032200582,112
601,331103,21360,751524,056 - - 3,196,849
- - - - (2,394)(207,387)(209,781)
601,331103,21360,751524,056(2,394)(207,387)2,987,068
$601,331$104,195$79,869$524,378$0$25,658$3,824,517
EDA Component Unit
129
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, 2016
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$1,141$ - $217,931$222,305$ -
Tax increment collections - - - - -
Special assessments - 105,296 - - -
Intergovernmental - - 384,41530,000 -
Investment income:
Interest and dividends606805503701,340
Change in fair value - (60)(50)(30)(110)
Total revenues1,201105,916602,846252,6451,230
Expenditures:
Community development:
Other services and charges - - - - -
Capital outlay - - - - -
Debt service:
Principal retirement110,00060,000230,000185,000116,670
Interest and fiscal charges3,25239,236392,310113,5744,752
Developer incentives - - - - -
Total expenditures113,25299,236622,310298,574121,422
Revenues over (under) expenditures(112,051)6,680(19,464)(45,929)(120,192)
Other financing sources (uses):
Transfers in - - - 57,590364,103
Sale of capital assets - - - - -
Total other financing sources (uses)00057,590364,103
Net change in fund balance(112,051)6,680(19,464)11,661243,911
Fund balance - January 1125,313207,383466,338259,908346,985
Fund balance - December 31$13,262$214,063$446,874$271,569$590,896
130
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 Central Valu
Center Fund 374
TIF Scattered
Site Fund 391
Total Nonmajor
Debt Service Funds
$472,856$ - $ - $ - $ - $ - $ - $914,233
- - 25,82843,902102,566 - 19,408 191,704
- - - - - - - 105,296
- - - - - - - 414,415
4202,800 1,3009001,660 - 200 10,280
(30)(1,100)(500)(400)(140) - (100)(2,520)
473,2461,700 26,62844,402104,086 019,5081,633,408
- 5,412 1,7021,78512,357 2,3941,301 24,951
- 87,729 - - 180,954 - 157,656 426,339
- - - - 60,000 - - 761,670
203,254 - - - 19,404 - - 775,782
- - - 39,466 - - - 39,466
203,25493,141 1,70241,251272,715 2,394158,9572,028,208
269,992(91,441)24,9263,151(168,629)(2,394)(139,449)(394,800)
- - - - - - - 421,693
- 166,618 - - 79,218 - - 245,836
0166,618 0 079,218 0 0 667,529
269,99275,177 24,9263,151(89,411)(2,394)(139,449)272,729
100,842526,154 78,28757,600613,467 - (67,938)2,714,339
$370,834$601,331$103,213$60,751$524,056($2,394)($207,387)$2,987,068
EDA Component Unit
131
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132
NONMAJOR
CAPITAL PROJECT FUNDS
The City of Columbia Heights had the following Nonmajor Capital Project Funds during the year:
Economic Development Authority – a separate legal entity from the City. The mayor and City
Council comprise the majority membership of this component unit. Its purpose is to foster
economic development in the City.
EDA Housing Maintenance Fund 408 – used to account for real estate for resale owned by
the EDA, that was not purchased with tax increment financing.
Capital Improvement General Government Buildings Fund 411 – used to account for
improvements to City buildings.
Capital Improvement Parks Fund 412 – used to account for improvements in City parks. This
includes park dedication fees when available, the use of which is limited by state statute to park
improvements.
Capital Improvement Development Fund 420 – used to account for improvements to various
development areas within the City.
Infrastructure Replacement Fund 430 – used to fund replacement of City infrastructure.
Capital Equipment Fire Fund 439 – used to fund replacement of fire department capital assets.
This fund is limited by state statute to fire department expenditures. The original source of the
assets in this fund was excess funding in a fire pension plan.
Capital Equipment Cable TV Fund 440 – used to fund replacement of cable television capital
assets.
133
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 33
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
EDA
(Component
Unit) Housing
Maintenance
Fund 408
Capital
Improvements
General Gov't
Buildings
Fund 411
Capital
Improvement
Parks Fund
412
Capital
Improvement
Development
Fund 420
Infrastructure
Replacement
Fund 430
Capital
Equipment
Fire Fund
439
Capital
Equipment
Cable TV
Fund 440
Total Nonmajor
Capital Project
Funds
Assets
Cash and investments$ - $1,428,837$337,353$1,124,546$1,086,119$ - $71,500$4,048,355
Interfund receivable - - - 90,296 - - - 90,296
Receivables:
Loans - - - 97,630 - - - 97,630
Interest - 2,3003001,9001,800 - 1006,400
Real estate held for resale21,113 - - 87,015 - - - 108,128
Total assets$21,113$1,431,137$337,653$1,401,387$1,087,919$0$71,600$4,350,809
Liabilities and Fund Balance
Liabilities:
Accounts payable - - 6,1283,560 - - - 9,688
Due to other governmental units - - - 1,672 - - - 1,672
Total liabilities006,1285,23200011,360
Fund balance:
Committed21,1131,431,137331,5251,396,1551,087,919 - 71,6004,339,449
Total fund balance21,1131,431,137331,5251,396,1551,087,919071,6004,339,449
Total liabilities and fund balance$21,113$1,431,137$337,653$1,401,387$1,087,919$0$71,600$4,350,809
134
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 34
CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
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 $ - $305,585$36,141$ - $50,000$ - $ - $391,726
Investment income:
Interest and dividends - 17,9002,20015,30014,2001001,00050,700
Change in fair value - (7,100)(900)(6,100)(5,600) - (400)(20,100)
Program revenue - - 223,60817,568 - - - 241,176
Other revenue - - - 103 - - - 103
Total revenues 0316,385261,04926,87158,600100600663,605
Expenditures:
Current:
Other services and charges - 77,22615,00065,821 - 17,886 - 175,933
Capital outlay - - 28,32057,664119,173 - - 205,157
Total expenditures 077,22643,320123,485119,17317,886 0381,090
Revenue over (under) expenditures 0239,159217,729(96,614)(60,573)(17,786)600282,515
Other financing sources (uses):
Transfers in - 23,00013,859 - 227,525 - - 264,384
Transfers out - - - (100,000) - - - (100,000)
Sale of capital assets - - - 25,102 - - - 25,102
Total other financing sources (uses)023,00013,859(74,898)227,525 0 0189,486
Net change in fund balance 0262,159231,588(171,512)166,952(17,786)600472,001
Fund balance - January 1 21,1131,168,97899,9371,567,667920,96717,78671,0003,867,448
Fund balance - December 31 $21,113$1,431,137$331,525$1,396,155$1,087,919$0$71,600$4,339,449
135
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136
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.
137
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 35
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals for December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:2016 2015
Current assets:
Cash and cash equivalents $2,376$46,656$289$300,707$ - $350,028$951,626
Receivables:
Accounts (net of allowance for
uncollectables)651,111 - - - - 651,111 583,272
Interest 800 700 - 130 - 1,630 2,290
Due from other governmental units 14,781 - - - - 14,781 -
Interfund receivable - 271,900 - - (271,900) - -
Inventory - at cost 8,609 - - - - 8,609 8,011
Total current assets 677,677319,256 289300,837(271,900)1,026,1591,545,199
Noncurrent assets:
Capital assets:
Land 45,223 - - - - 45,223 45,223
Buildings 1,305,172 - - - - 1,305,172 866,118
Equipment 542,691 - - - - 542,691 515,901
Infrastructure 9,451,169 - - - - 9,451,1698,973,852
Construction in process - - 511,985 - - 511,985 482,295
Total capital assets 11,344,255 0511,985 0 011,856,24010,883,389
Less: accumulated depreciation (5,194,664) - - - - (5,194,664)(4,958,174)
Total capital assets (net of
accumulated depreciation)6,149,591 - 511,985 - - 6,661,5765,925,215
Total noncurrent assets 6,149,591 0511,985 0 06,661,5765,925,215
Total assets 6,827,268319,256512,274300,837(271,900)7,687,7357,470,414
Deferred outflows of resources: -
Related to pensions 108,819 - - - - 108,819 23,580
Liabilities :
Current liabilities:
Accounts payable 6,952 - 17,194 - - 24,146 10,829
Accrued salaries and withholdings payable20,535 - 1,037 - - 21,572 7,692
Contracts payable - retained percentage - - 17,930 - - 17,930 11,792
Due to other governmental units 99,865 - 265,538 - - 365,403 371,642
Interfund payable 267,100 - 4,800131,000(271,900)131,000 131,000
Accrued interest payable - - - 6,027 - 6,027 6,682
Compensated absences payable - current 1,071 - - - - 1,071 1,310
Bonds payable - current - - - 185,754 - 185,754 170,042
Total current liabilities 395,523 0306,499322,781(271,900)752,903 710,989
Noncurrent liabilities:
Compensated absences payable - noncurrent14,011 - - - - 14,011 16,163
Bonds payable - noncurrent - - - 645,000 - 645,000 830,754
Net pension liability 261,951 - - - - 261,951 171,438
Total noncurrent liabilities 275,962 0 0645,000 0 920,9621,018,355
Total liabilities 671,485 0306,499967,781(271,900)1,673,8651,729,344
Deferred inflows of resources:
Related to pensions 32,161 - - - - 32,161 19,857
Net position:
Net investments in capital assets 6,149,591 - 511,985(830,754) - 5,830,8225,474,419
Restricted - - - 205,251 - 205,251 190,615
Unrestricted 82,850319,256(306,210)(41,441) - 54,455 79,759
Total net position $6,232,441 $319,256 $205,775 ($666,944)$0 $6,090,528 $5,744,793
Total
138
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 36
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:20162015
Charges for services:
Customer services $63,663$ - $ - $ - $ - $63,663$58,883
Penalties 91,183 - - - - 91,18395,559
Charges for sales:
Water 2,709,072 - - - - 2,709,0722,482,751
Meter 12,04975,034 - - - 87,08387,925
Total operating revenues 2,875,96775,034 0 0 02,951,0012,725,118
Operating expenses:
Cost of sales 1,426,460 - - - - 1,426,4601,221,185
Distribution 700,929 - 29,429 - - 730,358799,134
Administration 82,193 - - - - 82,19331,645
Depreciation 271,546 - - - - 271,546240,377
Total operating expenses 2,481,128 0 29,429 0 0 2,510,557 2,292,341
Net income (loss) from operations 394,839 75,034 (29,429)0 0 440,444 432,777
Nonoperating revenues (expenses):
Investment income:
Interest and dividends 6,2005,600 208600 - 12,60810,170
Change in fair value (2,500)(2,200) - (50) - (4,750)3,360
Miscellaneous revenues 10,085 - - - - 10,0855,398
Miscellaneous expense - - - - - - (3,158)
Interest and fiscal charges - - - (22,256) - (22,256)(26,151)
Total nonoperating revenues (expenses)13,785 3,400 208 (21,706)0 (4,313)(10,381)
Net income (loss) before transfers 408,624 78,434 (29,221)(21,706)0 436,131 422,396
Transfers in 580,89925,000 - 268,000(873,899) - -
Transfers out (383,396)(141,845)(439,054) - 873,899(90,396)(131,017)
Total transfers 197,503 (116,845)(439,054)268,000 0 (90,396)(131,017)
Change in net position 606,127 (38,411)(468,275)246,294 0 345,735 291,379
Total net position - January 1, as previously reported5,626,314357,667674,050(913,238) - 5,744,793 5,616,744
Prior period adjustment - - - - - - (163,330)
Total net position - January 1, as restated 5,626,314357,667674,050(913,238)05,744,7935,453,414
Total net position - December 31 $6,232,441$319,256$205,775($666,944)$0$6,090,528$5,744,793
Total
139
CITY OF COLUMBIA HEIGHTS, MINNESOTA
WATER UTILITY FUND Statement 37
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from customers $2,782,545 $2,717,640
Cash paid to suppliers for goods and services (1,622,657)(1,536,248)
Cash payments to employees for services (478,747)(470,118)
Net cash flows from operating activities 681,141 711,274
Cash flows from noncapital financing activities:
Transfers out (90,396)(131,017)
Interfund receivable repaid by (advanced to) other funds - 9,629
Interfund payable (repaid to) advanced by other funds - (64,000)
Net cash flows from noncapital financing activities (90,396)(185,388)
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,007,907)(474,047)
Principal payments - bonds (170,042)(177,028)
Interest and fiscal charges (22,912)(26,676)
Net cash flows from capital and related financing activities (1,200,861)(677,751)
Cash flows from investing activities:
Investment income:
Interest and dividends 13,268 9,480
Change in fair value (4,750)3,360
Net cash flows from investing activities 8,518 12,840
Net increase (decrease) in cash and cash equivalents (601,598)(139,025)
Cash and cash equivalents - January 1 951,626 1,090,651
Cash and cash equivalents - December 31 $350,028 $951,626
Reconciliation of operating income to net cash flows from operating activities:
Operating income $440,444 $432,777
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 271,546 240,377
Miscellaneous revenues 10,085 5,398
Miscellaneous expenses - (3,158)
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (67,838)19,879
(Increase) decrease in due from other governmental units (14,781)
(Increase) decrease in inventory, at cost (598)(619)
(Increase) decrease in deferred pension outflows (85,239)(23,580)
Increase (decrease) in accounts payable 13,317 (27,489)
Increase (decrease) in accrued salaries and withholdings payable 13,880 (1,434)
Increase (decrease) in contracts payable -retained percentage 6,138 6,109
Increase (decrease) in due to other governmental units (6,239)36,066
Increase (decrease) in compensated absences payable (2,391)(1,017)
Increase (decrease) in net pension liability 90,513 8,108
Increase (decrease) in deferred pension inflows 12,304 19,857
Total adjustments 240,697 278,497
Net cash flows from operating activities $681,141 $711,274
Noncash capital and related financing activities:$ - $ -
140
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 38
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals for December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Assets:20162015
Current assets:
Cash and cash equivalents$1,106$347,143$561,164$38,829$ - $948,242$1,065,067
Receivables:
Accounts (net of allowance for
uncollectibles)485,337 - - - - 485,337435,259
Interest - 702 900 20 - 1,622 2,160
Interfund receivables - - 57,000 - (57,000) - -
Prepayments 87,776 - - - - 87,77681,197
Total current assets 574,219347,845619,06438,849(57,000)1,522,9771,583,683
Noncurrent assets:
Capital assets:
Land 36,586 - - - - 36,58636,586
Buildings403,659 - - - - 403,659403,659
Equipment980,241 - - - - 980,241932,135
Construction in progress - - - - - - 124,833
Infrastructure6,677,171 - - - - 6,677,1716,154,219
Total capital assets8,097,657 00008,097,6577,651,432
Less: accumulated depreciation (4,703,176) - - - - (4,703,176)(4,584,813)
Net capital assets3,394,481 00003,394,4813,066,619
Total noncurrent assets3,394,481 0 0 0 0 3,394,481 3,066,619
Total assets3,968,700347,845619,06438,849(57,000)4,917,4584,650,302
Deferred outflows of resources:
Related to pensions108,819 - - - - 108,81923,580
Liabilities:
Current liabilities:
Accounts payable 6,481 - 98,401 - - 104,882 1,386
Accrued salaries and withholdings payable 5,950 - 70 - - 6,020 8,474
Contracts payable - retained percentage - - 4,660 - - 4,66010,678
Interfund payable 57,000 - - - (57,000) - -
Accrued interest payable - - - 2,191 - 2,191 2,271
Compensated absences payable - current 2,824 - - - - 2,824 2,868
Bonds payable - current - - - 35,000 - 35,00035,000
Total current liabilities72,2550103,13137,191(57,000)155,577 60,677
Noncurrent liabilities:
Compensated absences payable - noncurrent 36,954 - - - - 36,95435,370
Bonds payable - noncurrent - - - 392,288 - 392,288295,000
Net pension liability 261,951 - - - - 261,951171,438
Total noncurrent liabilities298,90500392,2880691,193501,808
Total liabilities371,1600103,131429,479(57,000)846,770562,485
Deferred inflows of resources:
Related to pensions32,161 - - - - 32,16119,857
Net position:
Net investment in capital assets3,394,481 - - (427,288) - 2,967,1932,982,428
Restricted - - - 39,946 - 39,94640,113
Unrestricted279,717347,845515,933(3,288) - 1,140,2071,068,999
Total net position $3,674,198$347,845$515,933($390,630)$0$4,147,346$4,091,540
Total
141
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 39
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
Operating revenues:20162015
Charges for services:
Sewer service charges $1,796,170$ - $ - $ - $ - $1,796,170$1,640,962
Other 39,760 - - - - 39,760$58,435
Total operating revenues 1,835,930 00001,835,930$1,699,397
Operating expenses:
Disposal 974,360 - - - - 974,360974,822
Collection 348,820 - 227,121 - - 575,941408,864
Administration 81,240 - - - - 81,24038,994
Depreciation 132,103 - - - - 132,103144,496
Total operating expenses 1,536,523 0227,121 0 01,763,6441,567,176
Net income (loss) from operations 299,407 0(227,121)0 072,286132,221
Nonoperating revenues (expenses):
Investment income
Interest and dividends - 5,3007,383 60 - 12,74310,660
Change in fair value - (2,098)(2,800)(10) - (4,908)4,070
Intergovernmental - - 70,645 - - 70,645 -
Interest and fiscal charges - - - (5,543) - (5,543)(5,679)
Miscellaneous 928 - 50 - - 978 -
Total nonoperating revenues (expenses)928 3,202 75,278 (5,493)0 73,915 9,051
Net income (loss) before transfers 300,335 3,202 (151,843)(5,493)0 146,201 141,272
Transfers in 584,79625,000132,28840,000(649,796)132,288 -
Transfers out (155,395)(61,845)(522,951)(132,288)649,796(222,683)(131,016)
Total transfers 429,401 (36,845)(390,663)(92,288)0 (90,395)(131,016)
Change in net position 729,736(33,643)(542,506)(97,781) - 55,80610,256
Total net position - January 1, as previously reported2,944,462381,4881,058,439(292,849) - 4,091,5404,244,614
Prior period adjustment - - - - - - (163,330)
Total net position - January 1, as restated 2,944,462 381,488 1,058,439 (292,849)0 4,091,540 4,081,284
Net position - December 31 $3,674,198$347,845$515,933($390,630)$0$4,147,346$4,091,540
Total
142
CITY OF COLUMBIA HEIGHTS, MINNESOTA
SEWER UTILITY FUND Statement 40
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2016
With Comparative Totals for Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from customers$1,695,012 $1,658,659
Cash paid to suppliers for goods and services(1,266,446)(1,244,286)
Cash payments to employees for services(165,714)(185,718)
Net cash flows from operating activities262,852228,655
Cash flows from noncapital financing activities:
Transfers in 132,288 -
Transfers out (222,683)(131,016)
Intergovernmental 70,645 -
Net cash flows from noncapital financing activities(19,750)(131,016)
Cash flows from capital and related financing activities:
Acquisition of capital assets(459,965)(114,250)
Bonds issued 132,288
Principal payments - bonds(35,000)(35,000)
Interest and fiscal charges(5,623)(5,737)
Net cash flows from capital and related financing activities(368,300)(154,987)
Cash flows from investing activities:
Investment income:
Interest and dividends13,2819,900
Change in fair value(4,908)4,070
Net cash flows from investing activities8,373 13,970
Net increase (decrease) in cash and cash equivalents(116,825)(43,378)
Cash and cash equivalents - January 11,065,067 1,108,445
Cash and cash equivalents - December 31$948,242 $1,065,067
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$72,286 $132,221
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense132,103144,496
Miscellaneous revenues978
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable(50,078)(17,194)
(Increase) decrease in prepayments(6,579)36
(Increase) decrease in deferred pension outflows(85,239)(23,580)
Increase (decrease) in accounts payable103,496(14,904)
Increase (decrease) in accrued salaries and withholdings payable(2,454)2,576
Increase (decrease) in contracts payable -retained percentage(6,018)(25,493)
Increase (decrease) compensated absences payable1,5402,532
Increase (decrease) in net pension liability90,513 8,108
Increase (decrease) in deferred pension inflows12,304 19,857
Total adjustments190,566 96,434
Net cash flows from operating activities$262,852$228,655
Noncash capital and related financing activities:$ - $ -
143
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 41
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals for December 31, 2015
20162015
Assets:
Current assets:
Cash and cash equivalents $1,418,481 $1,504,837
Receivables:
Accounts (net of allowance for uncollectibles)510,358 495,402
Interest 2,700 2,500
Due from other governmental units 50,342 48,544
Total current assets 1,981,881 2,051,283
Noncurrent assets:
Capital assets:
Buildings 56,000 56,000
Equipment 112,893 112,893
Total capital assets 168,893 168,893
Less: accumulated depreciation (129,238)(125,897)
Total capital assets (net of accumulated depreciation)39,655 42,996
Total noncurrent assets 39,655 42,996
Total assets 2,021,536 2,094,279
Deferred outflows of resources:
Related to pensions 31,500 6,977
Liabilities:
Current liabilities:
Accounts payable 133,765 258,188
Accrued salaries and withholdings payable 3,382 2,757
Compensated absences payable - current 287 191
Total current liabilities 137,434 261,136
Noncurrent liabilities:
Compensated absences payable - noncurrent 3,752 2,361
Net pension liability 75,828 50,721
Total noncurrent liabilities 79,580 53,082
Total liabilities 217,014 314,218
Deferred inflows of resources:
Related to pensions 9,310 5,875
Net position:
Net investments in capital assets 39,655 42,996
Unrestricted 1,787,057 1,738,167
Total net position $1,826,712 $1,781,163
144
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 42
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Operating revenues:
Refuse service charges $1,867,504 $1,896,230
Operating expenses:
Collection and disposal 1,641,239 1,532,417
Administration 114,776 67,299
Recycling 86,171 87,216
Hazardous waste 10,684 11,723
Depreciation 3,341 3,641
Total operating expenses 1,856,211 1,702,296
Net income from operations 11,293 193,934
Nonoperating revenues:
Investment income
Interest and dividends 21,500 13,800
Change in fair value (8,600)5,500
Intergovernmental 99,454 96,518
Total nonoperating revenues 112,354 115,818
Net income before transfers 123,647 309,752
Transfers out (78,098)(119,277)
Change in net position 45,549 190,475
Total net position - January 1, as previously reported 1,781,163 1,639,010
Prior period adjustment - (48,322)
Total net position - January 1, as restated 1,781,163 1,590,688
Total net position - December 31 $1,826,712 $1,781,163
145
CITY OF COLUMBIA HEIGHTS, MINNESOTA
REFUSE UTILITY FUND Statement 43
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2016
With Comparative Totals for Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from customers $1,826,227 $1,907,682
Cash paid to suppliers for goods and services (1,852,932)(1,476,652)
Cash payments to employees for services (93,707)(85,780)
Net cash flows from operating activities (120,412)345,250
Cash flows from noncapital financing activities:
Transfers out (78,098)(119,277)
Intergovernmental 99,454 96,518
Net cash flows from noncapital financing activities 21,356 (22,759)
Cash flows from investing activities:
Investment income:
Interest and dividends 21,300 13,400
Change in fair value (8,600)5,500
Net cash flows from investing activities 12,700 18,900
Net increase in cash and cash equivalents (86,356)341,391
Cash and cash equivalents - January 1 1,504,837 1,163,446
Cash and cash equivalents - December 31 $1,418,481 $1,504,837
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income $11,293 $193,934
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 3,341 3,641
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (14,956)2,639
(Increase) decrease in due from other governmental units (1,798)15,790
(Increase) decrease in deferred pension outflows (24,523)(6,977)
Increase (decrease) in accounts payable (124,423)129,311
Increase (decrease) in accrued salaries and withholdings payable 625 492
Increase (decrease) compensated absences payable 1,487 (1,854)
Increase (decrease) in net pension liability 25,107 2,399
Increase (decrease) in deferred pension inflows 3,435 5,875
Total adjustments (131,705)151,316
Net cash flows from operating activities ($120,412)$345,250
Noncash capital and related financing activities:$ - $ -
146
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147
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 44
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals for December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Account
Capital
Construction
Account
Debt Service
Account
Assets:2016 2015
Current assets:
Cash and cash equivalents $129,095$15,100$206,395$148,037$498,627$709,362
Receivables:
Accounts (net of allowance for
uncollectibles)108,846 - - - 108,84698,225
Interest 198 - 799 631,0601,150
Total current assets 238,13915,100207,194148,100608,533808,737
Noncurrent assets:
Capital assets:
Land 260,690 - - - 260,690260,690
Equipment 340,692 - - - 340,692340,692
Infrastructure 2,667,144 - - - 2,667,1441,518,512
Construction in process - - - - - 1,160,471
Total capital assets 3,268,526 0 0 03,268,5263,280,365
Less: accumulated depreciation (1,084,271) - - - (1,084,271)(978,439)
Net capital assets 2,184,255 0 0 02,184,2552,301,926
Total noncurrent assets 2,184,255 0 0 02,184,2552,301,926
Total assets 2,422,39415,100207,194148,1002,792,7883,110,663
Deferred outflows of resources:
Related to pensions 28,637 - - - 28,6376,489
Liabilities:
Current liabilities:
Accounts payable 1,697 - - - 1,697 147
Accrued salaries and withholdings payable 3,142 - 1,649 - 4,7912,536
Interfund payable - - - 34,00034,00034,000
Accrued interest payable - - - 4,0214,0214,215
Compensated absences payable - current 153 - - - 153 10
Bonds payable - current - - - 111,611111,611103,288
Total current liabilities 4,992 01,649149,632156,273144,196
Noncurrent liabilities:
Compensated absences payable - noncurrent 2,000 - - - 2,000 129
Bonds payable - noncurrent - - - 407,712407,712651,611
Net pension liability 68,935 - - - 68,93547,171
Total noncurrent liabilities 70,935 0 0407,712478,647698,911
Total liabilities 75,927 01,649557,344634,920843,107
Deferred inflows of resources:
Related to pensions 8,464 - - - 8,4645,464
Net position:
Net investment in capital assets 2,184,255 - - (519,323)1,664,9321,987,027
Restricted - - - 124,505 124,505116,389
Unrestricted 182,38515,100205,545(14,426)388,604165,165
Total net position $2,366,640$15,100$205,545($409,244)$2,178,041$2,268,581
Total
148
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 45
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES
IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Operating
Account
Capital
Equipment
Replacement
Capital
Construction
Account
Debt Service
Account
Intrafund
Eliminations
20162015
Operating revenues:
Storm sewer service charges $399,160$ - $ - $ - $ - $399,160$375,663
Operating expenses:
Collection 194,199 - 173,839 - - 368,038438,385
Administration 4,170 - - - - 4,170 960
Depreciation 105,833 - - - - 105,83389,459
Total operating expenses 304,202 0173,839 0 0478,041528,804
Net income (loss) from operations 94,958 0(173,839)0 0(78,881)(153,141)
Nonoperating revenues (expenses):
Investment income
Interest and dividends 2,000 2006,286 290 - 8,7763,660
Change in fair value (800)(100)(2,400)(20) - (3,320)910
Interest and fiscal charges - - - (12,901) - (12,901)(13,884)
Miscellaneous 444 - - - - 444 -
Total nonoperating
revenues (expenses)1,644 100 3,886 (12,631)0 (7,001)(9,314)
Net income (loss) before transfers
and capital contributions 96,602 100 (169,953)(12,631)0 (85,882)(162,455)
Transfers in 1,148,6325,000 - 265,288(1,286,632)132,288 -
Transfers out (138,000) - (1,285,578) - 1,286,632(136,946) -
Capital contributions - intergovernmental - - - - - 747,334
Total transfers and contributions1,010,632 5,000 (1,285,578)265,288 0 (4,658)747,334
Change in net position 1,107,234 5,100 (1,455,531)252,657 0 (90,540)584,879
Total net position - January 1, as previously r 1,259,40610,0001,661,076(661,901) - 2,268,5811,728,641
Prior period adjustment - - - - - - (44,939)
Total net position - January 1, as restated1,259,406 10,000 1,661,076 (661,901)0 2,268,581 1,683,702
Net position - December 31$2,366,640$15,100$205,545($409,244)$0$2,178,041$2,268,581
Total
149
CITY OF COLUMBIA HEIGHTS, MINNESOTA
STORM SEWER UTILITY FUND Statement 46
SUBCOMBINING SCHEDULE OF CASH FLOWS
For Year Ended December 31, 2016
With Comparative Totals for Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from customers$366,834 $413,352
Cash paid to suppliers for goods and services(244,884)(322,067)
Cash payments to employees for services(96,741)(115,731)
Net cash flows from operating activities25,209(24,446)
Cash flows from noncapital financing activities:
Transfers in 132,288
Transfers out (136,946) -
Interfund payable (repaid to) advanced by other funds - (16,000)
Net cash flows from noncapital financing activities:(4,658)(16,000)
Cash flows from capital and related financing activities:
Acquisition of capital assets11,839(1,138,093)
Capital contribution - 747,334
Principal payments - bonds(235,576)(104,256)
Interest and fiscal charges(13,095)(14,016)
Net cash flows from capital and related financing activities(236,832)(509,031)
Cash flows from investing activities:
Investment income:
Interest and dividends 8,8663,410
Change in fair value (3,320)910
Net cash flows from investing activities5,546 4,320
Net increase (decrease) in cash and cash equivalents(210,735)(545,157)
Cash and cash equivalents - January 1709,3621,254,519
Cash and cash equivalents - December 31$498,627 $709,362
Reconciliation of operating income to net cash flows from operating activities:
Operating income ($78,881)($153,141)
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense105,83389,459
Changes in assets, liabilities, deferred outflows and inflows:444
(Increase) decrease in accounts receivable(10,622)(3,926)
(Increase) decrease in due from other governmental units - 48,104
(Increase) decrease in deferred pension outflows(22,148)(6,489)
Increase (decrease) in accounts payable1,550(3,641)
Increase (decrease) in accrued salaries and withholdings payable2,255(704)
Increase (decrease) compensated absences payable2,014(1,804)
Increase (decrease) in net pension liability21,764 2,232
Increase (decrease) in deferred pension inflows3,000 5,464
Total adjustments104,090 128,695
Net cash flows from operating activities$25,209($24,446)
Noncash capital and related financing activities:$ - $ -
150
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 47
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals for December 31, 2015
OperatingDebt Service
AccountAccount20162015
Assets:
Current assets:
Cash and cash equivalents$442,840$288,252$731,092$439,271
Restricted asset: cash and cash equivalents with fiscal agent - 399,253399,253399,251
Receivables:
Accounts (net of allowance for uncollectables)54 - 54 321
Interest - 80 80 50
Due from other governmental units 2,148 - 2,148 546
Inventory - at cost 2,851,516 - 2,851,5162,985,683
Total current assets 3,296,558687,5853,984,1433,825,122
Noncurrent assets:
Capital assets:
Land 2,006,714 - 2,006,7142,006,714
Buildings 3,915,062 - 3,915,0623,915,062
Equipment 436,380 - 436,380436,380
Total capital assets 6,358,156 06,358,1566,358,156
Less: accumulated depreciation (1,423,699) - (1,423,699)(1,275,609)
Net capital assets 4,934,457 04,934,4575,082,547
Total noncurrent assets 4,934,457 04,934,4575,082,547
Total assets 8,231,015687,5858,918,6008,907,669
Deferred outflows of resources:
Related to pensions 418,095 - 418,095 90,750
Liabilities:
Current liabilities:
Accounts payable 277,523 - 277,523201,869
Accrued salaries and withholdings payable 42,180 - 42,180 36,267
Due to other governmental units 94,377 - 94,377 86,683
Accrued interest payable - 86,182 86,182 89,983
Compensated absences payable - current 6,124 - 6,124 6,105
Bonds payable - current - 195,000195,000185,000
Total current liabilities 420,204281,182701,386605,907
Noncurrent liabilities:
Compensated absences payable - noncurrent 80,123 - 80,123 75,300
Bonds payable - noncurrent - 3,700,0003,700,0003,895,000
Net pension liability 1,006,445 - 1,006,445659,807
Total noncurrent liabilities 1,086,5683,700,0004,786,5684,630,107
Total liabilities 1,506,7723,981,1825,487,9545,236,014
Deferred inflows of resources:
Related to pensions 123,568 - 123,568 76,424
Net position:
Net investment in capital assets 4,934,457(3,495,747)1,438,7101,401,798
Restricted for debt service - 202,150202,150186,637
Unrestricted 2,084,313 - 2,084,3132,097,546
Total net position $7,018,770($3,293,597)$3,725,173$3,685,981
Total
151
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Top Heights
Top Valu Valu II Liquor
Operating revenues:
Charges for sales:
Liquor $1,556,205$1,101,542 $544,871
Beer 1,660,753 1,422,232 544,976
Wine 593,539 512,822 59,200
Other 171,488 165,453 135,017
Total operating revenues 3,981,985 3,202,049 1,284,064
Operating expenses:
Cost of goods sold 2,992,327 2,422,898 976,865
Operating expense 743,409 588,295 206,718
Depreciation 82,838 63,684 1,569
Total operating expenses 3,818,574 3,074,877 1,185,152
Net income from operations $163,411 $127,172 $98,912
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
152
Statement 48
TotalDebt
Operating Service Intrafund
Accounts Account Eliminations 2016 2015
$3,202,618 $ - $ - $3,202,618 $3,148,672
3,627,961 - - 3,627,961 3,609,221
1,165,561 - - 1,165,561 1,165,024
471,958 - - 471,958 477,026
8,468,098 0 0 8,468,098 8,399,943
6,392,090 - - 6,392,090 6,338,891
1,538,422 - - 1,538,422 1,386,496
148,091 - - 148,091 148,207
8,078,603 0 0 8,078,603 7,873,594
389,495 0 0 389,495 526,349
- 351 - 351 151
- (30) - (30)(60)
- (191,806) - (191,806)(200,124)
- - - - (3,571)
0 (191,485)0 (191,485)(203,604)
389,495 (191,485)0 198,010 322,745
- 392,000 (392,000) - -
(550,818) - 392,000 (158,818)(202,789)
(550,818)392,000 0 (158,818)(202,789)
(161,323)200,515 0 39,192 119,956
7,180,093 (3,494,112) - 3,685,981 4,194,628
0 - - - (628,603)
7,180,093 (3,494,112)0 3,685,981 3,566,025
$7,018,770 ($3,293,597)$0 $3,725,173 $3,685,981
Total
153
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2
For Year Ended December 31, 2016
With Comparative Amount for Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from customers $8,466,763$8,312,054
Cash paid to suppliers for goods and services (6,714,403)(6,803,924)
Cash payments to employees for services (921,402)(996,676)
Net cash flows from operating activities 830,958511,454
Cash flows from noncapital financing activities
Transfers in - -
Transfers out (158,818)(202,789)
Net cash flows from noncapital financing activities (158,818)(202,789)
Cash flows from capital and related financing activities:
Acquisition of capital assets - (23,178)
Principal payments - bonds (185,000)(180,000)
Interest and fiscal charges - including capitalized interest (195,608)(203,818)
Net cash flows from capital and related financing activities (380,608)(406,996)
Cash flows from investing activities:
Investment income:
Interest and dividends 321 101
Change in fair value (30)(60)
Net cash flows from investing activities 291 41
Net increase (decrease) in cash and cash equivalents 291,823 (98,290)
Total cash and cash equivalents - January 1 838,522936,812
Total cash and cash equivalents - December 31 1,130,345 838,522
(Less) Restricted asset: cash and cash equivalents with fiscal agent - December 31 (399,253)(399,251)
Cash and cash equivalents - December 31 $731,092$439,271
154
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LIQUOR FUND Statement 49
SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2
For Year Ended December 31, 2016
With Comparative Amount for Year Ended December 31, 2015
20162015
Reconciliation of operating income to net cash flows from operating activities:
Operating income $389,495$526,349
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 148,091148,207
Miscellaneous expense - (3,571)
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable 267 (300)
(Increase) decrease in due from other governmental units (1,602)3,161
(Increase) decrease in deferred pension outflows (327,345)(90,750)
(Increase) decrease in inventory, at cost 134,167(108,878)
Increase (decrease) in accounts payable 75,654(66,799)
Increase (decrease) in accrued salaries and withholdings payable 5,913 (6,655)
Increase (decrease) in due to other governmental units 7,694 (5,511)
Increase (decrease) in compensated absences payable 4,842 8,573
Increase (decrease) in net pension liability 346,638 31,204
Increase (decrease) in deferred pension inflows 47,144 76,424
Total adjustments 441,463 (14,895)
Net cash flows from operating activities $830,958$511,454
Noncash capital and related financing activities:$ - $ -
155
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156
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 financed 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.
157
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 50
COMBINING STATEMENT OF NET POSITION
December 31, 2016
Municipal
Service
Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Assets:
Current assets:
Cash and cash equivalents$918,363$728,326$1,162,338$1,033,906$3,842,933
Interest receivable1,4001,3002,000 - 4,700
Due from other governmental units10 - - - 10
Prepayments - 4,25566,280 - 70,535
Inventory - at cost45,557 - - - 45,557
Total current assets965,330733,8811,230,6181,033,9063,963,735
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(1,082,269)(228,315) - - (1,310,584)
Net capital assets1,146,73223,845001,170,577
Total noncurrent assets1,146,73223,845001,170,577
Total assets2,112,062 757,726 1,230,618 1,033,906 5,134,312
Deferred outflows of resources:
Related to pensions131,729108,819 - - 240,548
Liabilities:
Current liabilities:
Accounts payable29,4758,0452,000 - 39,520
Accrued salaries and withholdings payable13,09710,079 - - 23,176
Unearned revenue8,385 - - - 8,385
Compensated absences payable - current3,5781,690 - 73,40778,675
Total current liabilities54,535 19,814 2,000 73,407 149,756
Noncurrent liabilities:
Compensated absences payable - noncurrent46,82422,117 - 960,4991,029,440
Net pension liability317,100261,951 - - 579,051
Total noncurrent liabilities363,924 284,068 - 960,499 1,608,491
Total liabilities 418,459 303,882 2,000 1,033,906 1,758,247
Deferred inflows of resources:
Related to pensions 38,93332,161 - - 71,094
Net position:
Net investments in capital assets 1,146,73223,845 - - 1,170,577
Unrestricted 639,667506,6571,228,618 - 2,374,942
Total net position $1,786,399$530,502$1,228,618 $0$3,545,519
158
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 51
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
Municipal
Service Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Operating revenues:
Charges for services:
Services to departments$325,220$335,000$588,838$ - $1,249,058
Use of space307,543 - - - 307,543
Recovery of damages - - 56,883 - 56,883
Charges for sales:
Sales of motor fuel100,767 - - - 100,767
Total operating revenues733,530 335,000 645,721 0 1,714,251
Operating expenses:
Cost of services and space745,002352,888594,865 - 1,692,755
Depreciation69,68215,887 - - 85,569
Total operating expenses814,684 368,775 594,865 0 1,778,324
Net income (loss) from operations(81,154)(33,775)50,8560(64,073)
Nonoperating revenues (expenses):
Investment income
Interest and dividends11,50010,50016,100 - 38,100
Change in fair value(4,500)(4,200)(6,400) - (15,100)
Total nonoperating revenues
(expenses)7,000 6,300 9,700 0 23,000
Net income (loss) before transfers(74,154)(27,475)60,556 0 (41,073)
Transfers in88,917 - - - 88,917
Transfers out - - (13,332) - (13,332)
Total transfers88,917 0 (13,332)0 75,585
Change in net position14,763 (27,475)47,224 0 34,512
Net position - January 11,771,636 557,977 1,181,394 0 3,511,007
Net position - December 31$1,786,399 $530,502 $1,228,618 $0 $3,545,519
159
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INTERNAL SERVICE FUNDS Statement 52
COMBINING STATEMENT OF CASH FLOWS
For The Year Ended December 31, 2016
Municipal
Service Center
Information
SystemsInsurance
Compensated
Absences
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from interfund goods and services provided $733,530$335,000$588,838$ - $1,657,368
Cash received for damages - - 56,883 - 56,883
Cash paid to suppliers for goods and services (262,132)(59,773)(595,773) - (917,678)
Cash payments to employees for services (341,968)(269,056) - - (611,024)
Net cash flows provided by (used in) operating activities129,430 6,171 49,948 0185,549
Cash flows from noncapital financing activities:
Transfers out - - (13,332) - (13,332)
Transfers in 88,917 - - - 88,917
Increases in compensated absences payable - - - 625,733625,733
Decreases in compensated absences payable - - - (612,532)(612,532)
Net cash flows provided by (used in)
noncapital financing activities 88,917 0 (13,332)13,201 88,786
Cash flows from capital and related financing activities:
Acquisition of capital assets - - - - -
Net cash flows provided by (used in)
capital and related financing activities 0 0 0 0 0
Cash flows from investing activities:
Investment income:
Interest and dividends 11,300 10,500 16,000 - 37,800
Change in fair value (4,500)(4,200)(6,400) - (15,100)
Net cash flows provided by (used in) investing activities 6,800 6,300 9,600 0 22,700
Net increase (decrease) in cash and cash equivalents 225,147 12,471 46,216 13,201297,035
Cash and cash equivalents - January 1 693,216715,8551,116,1221,020,7053,545,898
Cash and cash equivalents - December 31 $918,363 $728,326 $1,162,338 $1,033,906 $3,842,933
Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss)($81,154)($33,775)$50,856$ - ($64,073)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 69,682 15,887 - - 85,569
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (10) - (10)
(Increase) decrease in prepayments - 6,945 (1,796) - 5,149
(Increase) decrease in inventory, at cost 8,300 - - 8,300
(Increase) decrease in deferred pension outflows (103,407)(85,243)(188,650)
Increase (decrease) in accounts payable 15,516 (1,932)888 - 14,472
Increase (decrease) in accrued
salaries and withholdings payable 2,719 774 - - 3,493
Increase (decrease) in compensated absences payable 2,364 672 - - 3,036
Increase (decrease) in deferred revenue 244 - - - 244
Increase (decrease) in net pension liability 200,095 90,537 290,632
Increase (decrease) in deferred inflows of resources 15,081 12,306 - - 27,387
Total adjustments 210,584 39,946 (908)0 249,622
Net cash flows provided by (used in) operating activities$129,430 $6,171$49,948 $0$185,549
Noncash capital and related financing activities:
Contribution of capital assets from government $ - $ - $ - $ - $ -
160
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 53
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals For December 31, 2015
CentralCapitalBuilding
GarageEquipmentMaintenance
OperatingReplacementOperating
AccountAccountAccount20162015
Assets:
Current assets:
Cash and cash equivalents$740,354$54,435$123,574$918,363$693,216
Due from other governmental units10 - - 10 -
Interest receivable1,300100 - 1,4001,200
Inventory - at cost45,557 - - 45,55753,856
Total current assets787,22154,535123,574965,330748,272
Noncurrent assets:
Capital assets:
Land15,779 - - 15,77915,779
Buildings1,978,957 - - 1,978,9571,978,957
Equipment234,265 - - 234,265234,265
Total capital assets2,229,001002,229,0012,229,001
Less: Accumulated depreciation(1,082,269) - - (1,082,269)(1,012,586)
Net capital assets1,146,732001,146,7321,216,415
Total noncurrent assets1,146,732001,146,7321,216,415
Total assets1,933,95354,535123,5742,112,0621,964,687
Deferred outflows of resources:
Related to pensions71,592 - 60,137131,72928,322
Liabilities:
Current liabilities:
Accounts payable29,418 - 5729,47513,959
Accrued salaries and withholdings payable8,234 - 4,86313,09710,378
Unearned revenue8,385 - - 8,3858,141
Compensated absences payable - current3,118 - 4603,5783,603
Total current liabilities49,155 0 5,380 54,535 36,081
Noncurrent liabilities:
Compensated absences payable - noncurrent40,804 - 6,02046,82444,435
Net pension liability172,336 - 144,764317,100117,005
Total noncurrent liabilities213,140 0 150,784 363,924 161,440
Total liabilities262,295 0 156,164 418,459 197,521
Deferred inflows of resources:
Related to pensions21,160 - 17,77338,93323,852
Net position:
Net investments in capital assets1,146,732 - - 1,146,7321,216,415
Unrestricted575,35854,5359,774639,667555,221
Total net position$1,722,090$54,535$9,774$1,786,399$1,771,636
Total
161
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 54
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
CentralCapitalBuilding
GarageEquipmentMaintenance
OperatingReplacementOperatingIntrafund
AccountAccountAccountEliminations20162015
Operating revenues:
Charges for services:
Services to departments$164,120$ - $161,100$ - $325,220$336,912
Use of space307,543 - - - 307,543302,051
Charges for sales:
Sales of motor fuel100,767 - - - 100,767138,688
Total operating revenues572,430 0 161,100 0 733,530777,651
Operating expenses:
Cost of services and space501,467 - 243,535 - 745,002673,730
Depreciation69,682 - - - 69,68277,240
Total operating expenses571,149 0 243,535 0 814,684750,970
Net income from operations1,2810(82,435)0(81,154)26,681
Nonoperating revenues:
Investment income:
Interest and dividends10,300800400 - 11,5006,699
Change in fair value(4,100)(300)(100) - (4,500)2,700
Miscellaneous revenue - - - - - 3,118
Total nonoperating revenues6,20050030007,00012,517
Net income (loss) before transfers7,481500(82,135)0(74,154)39,198
Transfers in - 4,00088,917(4,000)88,917 -
Transfers out(4,000) - - 4,000 - (35,000)
Total transfers(4,000)4,000 88,917 0 88,917 (35,000)
Change in net position3,4814,5006,782014,763 4,198
Net position - January 1, as previously reported1,718,60950,0352,992 - 1,771,6361,874,706
Prior period adjustment - - - - - (107,268)
Net position - January 1, as restated1,718,609 50,035 2,992 0 1,771,636 1,767,438
Total net position - December 31$1,722,090 $54,535 $9,774 $0 $1,786,399 $1,771,636
Total
162
CITY OF COLUMBIA HEIGHTS, MINNESOTA
MUNICIPAL SERVICE CENTER Statement 55
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from interfund goods & services provided $733,530 $777,651
Cash paid to suppliers for goods and services (262,132)(299,986)
Cash payments to employees for services (341,968)(334,807)
Net cash flows from operating activities 129,430 142,858
Cash flows from noncapital financing activities:
Transfers out - (35,000)
Transfers in 88,917 -
Miscellaneous revenue - 3,118
Net cash flows from noncapital financing activities:88,917 (31,882)
Cash flows from capital and related financing activities:
Acquisition of capital assets - -
Net cash flows from capital and related financing activities 0 0
Cash flows from investing activities:
Investment income:
Interest and dividends 11,300 6,499
Change in fair value (4,500)2,700
Net cash flows from investing activities 6,800 9,199
Net increase (decrease) in cash and cash equivalents 225,147 120,175
Cash and cash equivalents - January 1 693,216 573,041
Cash and cash equivalents - December 31 $918,363 $693,216
Reconciliation of operating income to net cash flows from operating activities:
Operating income ($81,154)$26,681
Adjustments to reconcile operating income to net
cash flows from operating activities:
Depreciation expense 69,682 77,240
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in accounts receivable (10) -
(Increase) decrease in inventory, at cost 8,300 14,706
(Increase) decrease in deferred pension outflows (103,407)(28,322)
Increase (decrease) in accounts payable 15,516 6,508
Increase (decrease) in accrued salaries and withholdings payable 2,719 4,305
Increase (decrease) in compensated absences payable 2,364 7,914
Increase (decrease) in unearned revenue 244 237
Increase (decrease) in net pension liability 200,095 9,737
Increase (decrease) in deferred pension inflows 15,081 23,852
Total adjustments 210,584 116,177
Net cash flows from operating activities $129,430 $142,858
Noncash capital and related financing activities:$ - $ -
163
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 56
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals For December 31, 2015
Capital
Equipment
OperatingReplacement
Account Account 2016 2015
Assets:
Current assets:
Cash and cash equivalents $280,587$447,739$728,326$715,855
Interest receivable 500 800 1,300 1,300
Prepaid expenses 4,255 - 4,255 11,200
Total current assets 285,342 448,539 733,881 728,355
Noncurrent assets:
Capital assets:
Equipment 252,160 - 252,160 252,160
Less: accumulated depreciation (228,315) - (228,315)(212,428)
Net capital assets 23,845 0 23,845 39,732
Total noncurrent assets 23,845 0 23,845 39,732
Total assets 309,187 448,539 757,726 768,087
Deferred outflows of resources:
Related to pensions 108,819 - 108,819 23,576
Liabilities:
Current liabilities:
Accounts payable 3,642 4,403 8,045 9,977
Accrued salaries and withholdings payable 10,079 - 10,079 9,305
Compensated absences payable - current 1,690 - 1,690 1,735
Total current liabilities 15,411 4,403 19,814 21,017
Noncurrent liabilities:
Compensated absences payable - noncurrent 22,117 - 22,117 21,400
Net pension liability 261,951 - 261,951 171,414
Total noncurrent liabilities 284,068 0 284,068 192,814
Total liabilities 299,479 4,403 303,882 213,831
Deferred inflows of resources:
Related to pensions 32,161 - 32,161 19,855
Net position:
Net investments in capital assets 23,845 - 23,845 39,732
Unrestricted 62,521 444,136 506,657 518,245
Total net position $86,366 $444,136 $530,502 $557,977
Total
164
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 57
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
Capital
Equipment
OperatingReplacement
Account Account 2016 2015
Operating revenues $335,000$ - $335,000$ -
Operating expenses:
Cost of services 339,626 13,262 352,888 320,003
Depreciation 15,887 - 15,887 21,508
Total operating expenses 355,513 13,262 368,775 341,511
Net income (loss) from operations (20,513)(13,262)(33,775)(341,511)
Nonoperating revenues:
Investment income
Interest and dividends 4,000 6,500 10,500 7,400
Change in fair value (1,600)(2,600)(4,200)2,900
Total nonoperating revenues 2,400 3,900 6,300 10,300
Net income (loss) before transfers (18,113)(9,362)(27,475)(331,211)
Transfers in - - - 335,000
Change in net position (18,113)(9,362)(27,475)3,789
Net position - January 1, as previously reported 104,479 453,498 557,977 717,496
Prior period adjustment - - - (163,308)
Net position - January 1, as restated 104,479 453,498 557,977 554,188
Net position - December 31 $86,366 $444,136 $530,502 $557,977
Total
165
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INFORMATION SYSTEMS FUND Statement 58
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Cash flows from operating activities:
$335,000$ -
Cash paid to suppliers for goods and services (59,773)(53,295)
Cash payments to employees for services (269,056)(263,617)
Net cash flows from operating activities 6,171(316,912)
Cash flows from noncapital financing activities:
Transfers in - 335,000
Net cash flows from noncapital financing activities:0 335,000
Cash flows from capital and related financing activities:
Acquisition of capital assets - (14,968)
Cash flows from investing activities:
Investment income:
Interest and dividends 10,500 7,300
Change in fair value (4,200)2,900
Net cash flows from investing activities 6,300 10,200
Net increase in cash and cash equivalents 12,471 13,320
Cash and cash equivalents - January 1 715,855 702,535
Cash and cash equivalents - December 31 $728,326$715,855
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)($33,775)($341,511)
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Depreciation expense 15,887 21,508
Changes in assets, liabilities, deferred outflows and inflows:
(Increase) decrease in prepayments 6,945 (11,200)
(Increase) decrease in deferred pension outflows (85,243)(23,576)
Increase (decrease) in accounts payable (1,932)8,691
Increase (decrease) in accrued salaries and withholdings payable 774 1,339
Increase (decrease) in compensated absences payable 672 (124)
Increase (decrease) in net pension liability 90,537 8,106
Increase (decrease) in deferred pension inflows 12,306 19,855
Total adjustments 39,946 24,599
Net cash flows from operating activities $6,171($316,912)
Noncash capital and related financing activities:$ - $ -
166
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 59
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals For December 31, 2015
20162015
Assets:
Current assets:
Cash and cash equivalents $1,162,338 $1,116,122
Interest receivable 2,000 1,900
Prepayments 66,280 64,484
Total assets 1,230,618 1,182,506
Liabilities:
Current liabilities:
Accounts payable 2,000 1,112
Total liabilities 2,000 1,112
Net position:
Unrestricted 1,228,618 1,181,394
Total net position $1,228,618 $1,181,394
167
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 60
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Operating revenues:
Insurance allocation $588,838 $570,570
Recovery of damages 56,883 53,370
Total operating revenues 645,721 623,940
Operating expenses:
Cost of services:
Premiums 510,692 538,325
Claims 84,173 61,865
Total operating expenses 594,865 600,190
Net income from operations 50,856 23,750
Nonoperating revenues:
Investment income
Interest and dividends 16,100 10,500
Change in fair value (6,400)4,200
Total nonoperating revenues 9,700 14,700
Net income before transfers 60,556 38,450
Transfers out (13,332)(25,000)
Change in net position 47,224 13,450
Net position - January 1 1,181,394 1,167,944
Net position - December 31 $1,228,618 $1,181,394
168
CITY OF COLUMBIA HEIGHTS, MINNESOTA
INSURANCE FUND Statement 61
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from interfund services provided $588,838 $570,570
Cash received for damages 56,883 53,370
Cash paid to suppliers for goods and services (595,773)(601,786)
Net cash flows from operating activities 49,948 22,154
Cash flows from noncapital financing activities:
Transfers out (13,332)(25,000)
Cash flows from investing activities:
Investment income:
Interest and dividends 16,000 10,500
Change in fair value (6,400)4,200
Net cash flows from investing activities 9,600 14,700
Net increase in cash and cash equivalents 46,216 11,854
Cash and cash equivalents - January 1 1,116,122 1,104,268
Cash and cash equivalents - December 31 $1,162,338 $1,116,122
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$50,856 $23,750
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities:
Changes in assets and liabilities:
(Increase) decrease in accounts receivable - -
(Increase) decrease in prepayments (1,796)(2,708)
Increase (decrease) in accounts payable 888 1,112
Total adjustments (908)(1,596)
Net cash flows from operating activities $49,948 $22,154
Noncash capital and related financing activities:$ - $ -
169
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 62
SUBCOMBINING SCHEDULE OF NET POSITION
December 31, 2016
With Comparative Totals For December 31, 2015
20162015
Assets:
Current assets:
Cash and cash equivalents $1,033,906 $1,020,705
Total assets 1,033,906 1,020,705
Liabilities:
Current liabilities:
Compensated absences payable - current 73,407 76,553
Noncurrent liabilities:
Compensated absences payable - noncurrent 960,499 944,152
Total liabilities 1,033,906 1,020,705
Net position:
Unrestricted - -
Total net position $0 $0
170
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 63
SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Operating revenues$ - $ -
Net income (loss) from operations - -
Change in net position - -
Net position - January 1 - -
Net position - December 31 $0 $0
171
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMPENSATED ABSENCES FUND Statement 64
SUBCOMBINING SCHEDULE OF CASH FLOWS
For The Year Ended December 31, 2016
With Comparative Totals For The Year Ended December 31, 2015
20162015
Cash flows from operating activities:
Cash received from interfund services provided $ - $ -
Net cash flows from operating activities 0 0
Cash flows from noncapital financing activities:
Increases in compensated absences payable 625,733 628,760
Decreases in compensated absences payable (612,532)(575,356)
Net cash flows from noncapital financing activities:13,201 53,404
Net increase in cash and cash equivalents 13,201 53,404
Cash and cash equivalents - January 1 1,020,705 967,301
Cash and cash equivalents - December 31 $1,033,906 $1,020,705
Reconciliation of operating income (loss) to net cash flows from operating activities:
Operating income (loss)$ - $ -
Adjustments to reconcile operating income (loss) to net
cash flows from operating activities: None - -
Net cash flows from operating activities $0 $0
Noncash capital and related financing activities:$ - $ -
172
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.
173
CITY OF COLUMBIA HEIGHTS, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 65
AGENCY FUNDS
For The Year Ended December 31, 2016
BalanceBalance
January 1,December 31,
2016AdditionsDeletions2016
Permit Surcharge Fund
Assets:
Cash and investments$6,729$468,238($473,867)$1,100
Total assets$6,729$468,238($473,867)$1,100
Liabilities:
Due to other governmental units$6,729$1,100($6,729)$1,100
Total liabilities$6,729$1,100($6,729)$1,100
Tri-City GIS Fund
Assets:
Cash and investments$21,316$115,873($126,409)$10,780
Due from other governmental units79486(79)486
Total assets$21,395$116,359($126,488)$11,266
Liabilities:
Accounts payable$19,283$129,631($137,648)$11,266
Due to other governmental units2,112 - (2,112) -
Total liabilities$21,395$129,631($139,760)$11,266
Total
Assets:
Cash and investments$28,045$584,111($600,276)$11,880
Due from other governmental units79486(79)486
Total assets$28,124$584,597($600,355)$12,366
Liabilities:
Accounts payable$19,283$129,631($137,648)$11,266
Due to other governmental units8,8411,100(8,841)1,100
Total liabilities$28,124$130,731($146,489)$12,366
174
III. STATISTICAL SECTION (UNAUDITED)
175
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176
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.
177
CITY OF COLUMBIA HEIGHTS, MINNESOTA
NET POSITIONS BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Governmental activities:
Invested in capital assets, net of related debt$18,859,030$23,497,922$24,163,911$26,279,178
Restricted 2,228,4542,316,9592,458,7432,034,030
Unrestricted 22,985,52321,011,46522,423,35123,142,534
Total governmental activities net position$44,073,007$46,826,346$49,046,005$51,455,742
Business-type activities:
Invested in capital assets, net of related debt$6,039,739$7,142,278$7,459,474$8,044,184
Restricted 775,036 745,601 648,435 438,275
Unrestricted 6,478,3835,855,4956,014,1406,725,383
Total business-type activities net position$13,293,158$13,743,374$14,122,049$15,207,842
Primary government:
Invested in capital assets, net of related debt$24,898,769$30,640,200$31,623,385$34,323,362
Restricted 3,003,4903,062,5603,107,1782,472,305
Unrestricted 29,463,90626,866,96028,437,49129,867,917
Total primary government net position$57,366,165$60,569,720$63,168,054$66,663,584
Note: The City implemented GASB statement No. 65 in fiscal year 2012. 2011 net position information has
been restated for this accounting change. Years prior to 2011 have not been restated.
Fiscal Year
178
Table 1
201120122013201420152016
$28,095,261$27,666,461$27,358,490$26,049,057$27,168,555$29,429,299
3,213,4552,624,4662,025,6523,752,8394,710,9685,175,865
21,119,17921,241,59522,222,57823,157,20815,717,27513,983,621
$52,427,895$51,532,522$51,606,720$52,959,104$47,596,798$48,588,785
$9,331,167$9,819,666$10,365,407$10,729,457$11,928,401$11,965,157
381,465 161,503 643,320 543,822 533,756 571,852
5,918,147 6,680,609 6,690,111 7,269,897 6,098,230 6,413,747
$15,630,779$16,661,778$17,698,838$18,543,176$18,560,387$18,950,756
$37,426,428$37,486,127$37,723,897$36,778,514$39,096,956$41,394,456
3,594,920 2,785,969 2,668,972$4,296,661$5,244,724$5,747,717
27,037,32627,922,20428,912,689$30,427,105$21,815,505$20,397,368
$68,058,674$68,194,300$69,305,558$71,502,280$66,157,185$67,539,541
Fiscal Year
179
CITY OF COLUMBIA HEIGHTS, MINNESOTA `
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200720082009
Expenses
Governmental activities:
General government$1,732,111$1,835,453$1,761,334
Public safety4,380,3634,599,6694,591,977
Public works2,506,9132,906,9502,794,189
Culture and recreation2,313,7502,283,8812,182,856
Community development5,918,2574,476,4752,385,405
Interest on long-term debt496,688721,006961,392
Total governmental activities expenses17,348,08216,823,43414,677,153
Business-type activities:
Water 2,113,1212,149,9761,927,811
Sewer 1,675,7381,571,4871,737,134
Refuse 1,170,7071,185,2981,290,528
Storm sewer204,221216,362376,884
Liquor 6,539,3577,470,3237,701,961
Total business-type activities expenses11,703,14412,593,44613,034,318
Total primary government expenses$29,051,226$29,416,880$27,711,471
Program revenues
Governmental activities:
Charges for services:
General government$177,378$173,485$169,850
Public safety670,017616,107637,653
Public works130,35167,22634,149
Culture and recreation297,341262,562256,969
Community development1,504,6791,562,3451,019,191
Operating grants and contributions:
General government - 2,5601,505
Public safety389,325433,732434,402
Public works154,309154,049161,401
Culture and recreation47,784239,865102,517
Community development159,624185,506211,400
Capital grants and contributions:
General government - - -
Public safety103,97457,70019,520
Public works1,448,1801,596,3481,683,024
Culture and recreation71,51642,5881,500
Community development1,311,5252,974,449199,505
Total governmental activities program revenues6,466,0038,368,5224,932,586
Fiscal Year
180
Table 2
Page 1 of 2
2010201120122013201420152016
$2,013,750$2,039,680$1,977,594$1,976,207$2,104,025$2,128,964$2,239,601
5,473,2245,549,6785,708,0095,683,7695,801,7476,265,4857,786,457
2,777,9662,654,0473,200,5722,843,1023,052,8443,529,5473,664,041
2,479,5192,576,4092,500,7192,553,7602,565,7552,926,0042,982,919
2,295,5741,630,3502,157,9662,010,0401,943,5761,555,640877,622
959,320909,858845,879808,933761,967948,493958,465
15,999,35315,360,02216,390,73915,875,81116,229,91417,354,13318,509,105
2,000,1012,370,0762,311,8582,371,4142,336,4752,367,9542,535,133
1,478,5181,710,3811,464,2691,538,9701,789,2601,621,5061,770,538
1,426,4861,561,6591,601,6481,628,9661,695,9971,753,4061,860,602
272,355298,577329,998307,876315,809541,926490,608
7,910,9518,155,8888,371,6108,341,3098,148,7888,125,1888,274,354
13,088,41114,096,58114,079,38314,188,53514,286,32914,409,98014,931,235
$29,087,764$29,456,603$30,470,122$30,064,346$30,516,243$31,764,113$33,440,340
$192,005$189,641$204,391$385,728$194,201$206,531$289,303
715,205697,656736,927706,168752,694703,489670,142
44,21148,303139,30539,14189,39251,991273,698
269,825159,829137,978163,931234,494227,224240,331
1,114,848962,276961,420976,030987,7221,001,740835,977
- - - - - - -
559,482563,914556,387511,527404,486485,439499,319
166,468176,578189,039233,748557,1121,314,3781,119,332
93,47476,86457,33756,06931,52118,42218,134
241,919112,89523,010 - - 96,274 -
194,84238,399 - - - - -
16,02611,303 - - - 15,350145,849
2,848,1791,314,547797,921855,227183,706811,654929,748
15,724 - - - - 252,260918,228
541,826175,467204,3491,026,706422,773364,791 -
7,014,0344,527,6724,008,0644,954,2753,858,1015,549,5435,940,061
Fiscal Year
181
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
200720082009
Business-type activities:
Charges for services:
Water $2,273,980$2,414,316$2,471,257
Sewer 1,419,2521,440,1651,465,496
Refuse 1,303,4721,341,0141,383,979
Storm sewer290,419314,238370,590
Liquor 6,722,6227,490,9427,962,884
Operating grants and contributions:
Water - - -
Sewer - 1,718 -
Refuse 36,06050,57250,105
Storm sewer - - -
Capital grants and contributions:
Sewer - 54,774 -
Refuse - - -
Storm sewer - - -
Total business-type activities program revenues12,045,80513,107,73913,704,311
Total primary government program revenues$18,511,808$21,476,261$18,636,897
Net (expense) revenue:
Governmental activities($10,882,079)($8,454,912)($9,744,567)
Business-type activities342,661514,293669,993
Total primary government net (expense) revenue(10,539,418)(7,940,619)(9,074,574)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes6,321,4676,762,1298,046,318
Tax increment collections1,183,0621,557,8911,244,684
Unrestricted grants and contributions1,844,5161,516,4121,731,185
Investment earnings1,379,7261,050,827475,345
Miscellaneous44,00040,87782,704
Transfers 456,537280,115383,990
Total governmental activities11,229,30811,208,25111,964,226
Business-type activities:
Investment earnings321,571216,03892,672
Transfers (456,537)(280,115)(383,990)
Total business-type activities(134,966)(64,077)(291,318)
Total primary government$11,094,342$11,144,174$11,672,908
Change in net position:
Governmental activities$347,229$2,753,339$2,219,659
Business-type activities207,695450,216378,675
Total primary government$554,924$3,203,555$2,598,334
Fiscal Year
182
Table 2
Page 2 of 2
2010201120122013201420152016
$2,503,506$2,530,803$2,777,383$3,020,174$2,805,072$2,730,516$2,961,086
1,594,3221,523,8521,581,5161,618,7861,627,0781,699,3971,836,908
1,542,3121,682,1781,761,8601,826,2261,887,0381,896,2301,867,504
345,086350,618353,343368,925366,384375,663399,604
8,158,2598,494,9628,804,2338,747,0848,415,3718,399,9438,468,098
- - - 1,971 - - -
- - - - - - -
36,65366,16362,47168,56591,42196,51899,454
- - - 14,335 - - -
- - - - - - 70,645
- - 50,000 - - - -
- - - 47,369747,334
14,180,13814,648,57615,390,80615,666,06615,239,73315,945,60115,703,299
$21,194,172$19,176,248$19,398,870$20,620,341$19,097,834$21,495,144$21,643,360
($8,985,319)($10,832,350)($12,382,675)($10,921,536)($12,371,813)($11,804,590)($12,569,044)
1,091,727551,9951,311,4231,477,531953,4041,535,621772,064
(7,893,592)(10,280,355)(11,071,252)(9,444,005)(11,418,409)(10,268,969)(11,796,980)
8,825,5029,069,0929,363,5989,827,37810,310,86710,512,48310,752,430
812,965558,861553,050532,524463,837491,639556,880
1,176,9341,278,1951,003,5521,000,5131,496,8041,682,4801,588,094
487,612598,880295,950(664,694)1,091,263342,384232,036
- 34,4857,33811,842 - (679,895)9,226
92,044264,990263,814288,171361,426369,099422,365
11,395,05711,804,50311,487,30210,995,73413,724,19712,718,19013,561,031
86,110135,93263,321(152,300)252,36062,52140,670
(92,044)(264,990)(263,814)(288,171)(361,426)(369,099)(422,365)
(5,934)(129,058)(200,493)(440,471)(109,066)(306,578)(381,695)
$11,389,123$11,675,445$11,286,809$10,555,263$13,615,131$12,411,612$13,179,336
$2,409,738$972,153($895,373)$74,198$1,352,384$913,600$991,987
1,085,793422,9371,110,9301,037,060844,3381,229,043390,369
$3,495,531$1,395,090$215,557$1,111,258$2,196,722$2,142,643$1,382,356
Fiscal Year
183
CITY OF COLUMBIA HEIGHTS, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010
General Fund:
Reserved $35,710$12,159$71,898$77,204
Unreserved 3,943,4363,743,7984,724,2535,265,035
Nonspendable - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total General Fund $3,979,146$3,755,957$4,796,151$5,342,239
All other governmental funds:
Reserved $2,382,354$968,602$1,643,915$1,550,071
Unreserved, reported in:
Special revenue funds 411,0901,868,3402,332,6103,190,618
Debt service funds 1,745,4473,242,4713,177,5863,713,774
Capital projects funds 15,918,04820,233,69013,173,07411,642,407
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Unassigned - - - -
Total all other governmental funds $20,456,939$26,313,103$20,327,185$20,096,870
Note:
The implementation of GASB 54 in 2011 resulted in a significant change in the City's fund balance classifications.
Fiscal Year
184
Table 3
201120122013201420152016
$ - $ - $ - $ - $ - $ -
- - - - - -
80,767 87,341 92,638 94,892 94,848 109,841
132,595 74,594 50,237 30,548 - -
- - - - 44,000 105,000
5,655,693 5,914,974 6,254,402 7,248,380 6,873,054 7,229,386
$5,869,055$6,076,909$6,397,277$7,373,820$7,011,902$7,444,227
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
2,353,164 2,763,852 1,750,114 1,522,537 2,724 2,852
3,440,649 4,186,081 3,879,706 4,368,851 9,821,307 6,582,938
12,774,44010,988,36812,229,48113,593,60912,902,16512,317,310
(1,041)(2,782)(39,344)(75,389)(92,040)(209,781)
$18,567,212$17,935,519$17,819,957$19,409,608$22,634,156$18,693,319
Fiscal Year
185
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2007200820092010
Revenues:
Taxes $7,444,199$8,263,763$9,218,038$9,631,635
Special assessments 1,137,5762,505,523879,0921,020,334
Licenses and permits 444,833423,465435,618479,148
Intergovernmental 4,229,4143,734,8263,777,3554,936,443
Charges for services 1,995,8591,665,6041,513,6671,650,772
Fines and forfeitures 160,383142,283139,955188,693
Investment earnings 1,271,216984,846456,145469,312
Other revenues 170,344296,815102,901273,446
Total revenues 16,853,824 18,017,125 16,522,771 18,649,783
Expenditures:
Current:
General government 1,616,3741,706,2441,646,9741,926,982
Public safety 4,122,4114,345,7164,418,4364,968,433
Public works 1,640,7131,955,2501,736,9991,731,700
Culture and recreation 2,238,7932,202,6802,003,6352,194,853
Community development 3,077,3104,077,5762,115,6281,351,368
Capital outlay:
General government - 5,453 45,708 -
Public safety 254,7283,499,7138,997,400237,272
Public works 1,303,2971,084,959951,2402,925,174
Culture and recreation 274,8963,269,9862,256,958194,380
Community development 306,332287,620139,1181,202,998
Debt service:
Principal retirement 792,2731,029,836783,974765,736
Interest and fiscal charges 219,065384,293835,167981,281
Issuance costs 148,972155,397 56,189 -
Developer incentives 2,584,854 71,341125,857141,005
Total expenditures 18,580,018 24,076,064 26,113,283 18,621,182
Revenues over (under) expenditures (1,726,194)(6,058,939)(9,590,512)28,601
Fiscal Year
186
Table 4
Page 1 of 2
2011 2012 2013 2014 2015 2016
$9,683,433$9,948,228$10,416,523$10,774,987$11,022,424$11,313,376
729,327 775,714 667,719 458,670 1,116,734 1,048,926
378,357 396,226 412,208 415,032 626,547 672,000
2,820,419 2,314,195 2,719,400 2,766,383 4,079,184 3,989,308
1,652,655 1,663,782 1,710,767 1,702,900 1,440,361 1,670,226
170,089 161,882 148,023 140,571 124,067 104,645
562,180 275,750 (611,794)1,011,063 318,284 215,336
70,173 63,674 104,577 73,815 189,073 222,178
16,066,633 15,599,451 15,567,423 17,343,421 18,916,674 19,235,995
1,880,257 1,813,433 1,791,379 1,939,689 1,950,062 2,107,655
5,037,548 5,250,881 5,171,322 5,270,798 5,595,115 5,464,957
1,509,527 2,011,507 1,644,075 1,916,874 2,220,057 2,332,372
2,306,693 2,184,214 2,233,446 2,247,452 2,581,993 2,605,616
1,321,431 1,434,329 1,205,273 1,544,419 1,136,220 685,180
144,029 209,176 13,868 21,642 - 25,260
95,281 158,448 70,960 103,707 608,932 182,696
1,882,787 557,820 896,223 79,225 1,727,488 1,275,862
140,867 18,107 39,768 100,248 4,173,606 6,284,441
40,549 636,294 566,901 413,179 507,472 506,447
1,659,022 972,000 1,559,730 662,000 1,036,716 3,310,670
935,405 861,139 833,890 770,535 826,921 910,586
- - - - 85,016 107,325
181,638 116,072 163,972 55,123 164,188 91,646
17,135,034 16,223,420 16,190,807 15,124,891 22,613,786 25,890,713
(1,068,401)(623,969)(623,384)2,218,530 (3,697,112)(6,654,718)
Fiscal Year
187
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2007200820092010
Other financing sources (uses):
Bonds issued $3,890,000$10,975,000$4,190,000$ -
Bond premium (discount)(22,108) - - -
Transfers in 570,374377,615458,231407,272
Transfers out (70,000)(88,941)(99,224)(120,100)
Sale of capital assets 191,897428,240 95,781 -
Special item - - - -
Total other financing sources (uses)4,560,163 11,691,914 4,644,788 287,172
Net change in fund balance $2,833,969$5,632,975($4,945,724)$315,773
Expenditures capitalized for governmental
activities reporting purposes $1,896,363$7,909,561$12,364,511$3,637,559
Debt service as a percentage
of noncapital expenditures (A) (B)6.1%8.7%11.8%11.7%
Debt service as a percentage
of total expenditures (A) (B)5.4%5.9%6.2%9.4%
(A) For the purpose of the debt service ratios presented in this table, only the principal and interest components of
the debt service expenditures reported in this table are used, and noncapital expenditures are determined
by subtracting expenditures capitalized for governmental activities reporting purposes from the total
governmental funds expenditures reported in the table.
(B) Certain information from prior years' presentations have been restated in this table to conform
to the current presentation.
Fiscal Year
188
Table 4
Page 2 of 2
2011 2012 2013 2014 2015 2016
$ - $ - $563,021 $ - $6,875,000$2,435,000
- - - - 293,651 79,890
411,736 298,814 326,740 405,728 429,099 435,697
(302,881)(110,000)(113,569)(124,302)(120,000)(88,917)
40,999 11,315 51,997 66,236 9,135 284,536
- - - - (927,142) -
149,854 200,129 828,189 347,662 6,559,743 3,146,206
($918,547)($423,840)$204,805$2,566,192$2,862,631($3,508,512)
$2,270,210 $943,602 $952,108 $417,503$6,602,755$7,910,938
17.5%12.0%15.7%9.7%11.6%23.5%
15.1%11.3%14.8%9.5%8.2%16.3%
Fiscal Year
189
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 NetTotalEstimatedCapacity Value
Fiscal OtherCaptured Tax Area Wide Allocation (C)Tax CapacityDirect TaxMarketas a Percent
YearResidentialProperty (B)Increment ValueSubtotalContributionDistributionValue Rate Valueof EMV
2007$12,860,373$1,967,884($1,389,436)$13,438,821($443,665)$2,473,140$15,468,29641.511%$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%
20169,262,6831,861,323(523,754)10,600,252(555,804)4,149,90614,194,35474.841%1,132,257,3001.254%
(A) 2012-2016 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
190
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX RATES (A) Table 6
Last Ten Fiscal Years
City
Fiscal Direct School Special
Year Rate (A)District 13 CountyDistricts ( C)Total
2007 41.511%17.338%28.626%7.901%95.376%
2008 43.076%16.088%28.927%9.693%97.784%
2009 47.430%23.554%29.861%8.699%109.544%
2010 56.881%24.547%32.696%9.185%123.309%
2011 61.804%18.842%37.235%9.605%127.486%
2012 66.300%24.200%38.415%9.932%138.847%
2013 80.871%27.636%41.443%12.464%162.414%
2014 78.177%24.824%40.365%12.297%155.663%
2015 70.811%32.562%38.123%10.811%152.307%
2016 74.841%29.442%38.894%11.016%154.193%
(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 by
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, Columbia Heights Housing and Redevelopment
Authority and the Mississippi Watershed Management.
Source: Anoka County Auditor's Tax Certificate
Overlapping Rates (B)
191
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192
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS Table 7
Current Year and Ten Years Ago
Percentage Percentage
Tax of Total CityTaxable of Total City
Capacity Tax CapacityCapacity Tax Capacity
Taxpayer Value (A) & (B)Rank ValueValue (A)Rank Value
Medtronic Inc $154,3021 1.39%$202,0521 1.36%
Bre Non-Core 2 Owner B, LLC 106,116 2 0.95%N/AN/A N/A
Crestview Corporation 99,9523 0.90%74,6158 0.50%
Jones Family Investments LLC 94,1714 0.85%N/AN/A N/A
Columbia Park Properties 85,9925 0.77%99,0685 0.67%
Xcel Energy/ Northern States Power Co 73,3426 0.66%N/AN/A N/A
Burlington Northern 72,2007 0.65%N/AN/A N/A
Columbia Heights Center LLC 68,6408 0.62%72,3689 0.49%
Lynde Investment Co MN Partnership 62,5279 0.56%81,8857 0.55%
Health Care Reit Inc 59,80810 0.54%N/AN/A N/A
New Heights Development N/AN/A N/A147,9343 1.00%
Consolidated Realty of Mpls N/AN/A N/A112,5604 0.76%
Jeff's Bobby & Steve's Auto World N/AN/A N/A62,61810 0.42%
Equity Partners LLC N/AN/A N/A87,8686 0.59%
Bradley Operating LP N/AN/A N/A148,7522 1.00%
Total $877,050 7.89%$1,089,720 7.34%
Total All Property $11,124,006 $14,828,257
(A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5.
(B) 2015 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.
20072016
193
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years
CountyState Market
FiscalGrossAdjustmentsValue HomesteadAdjusted
Year Tax Levy (A)to Levy (B)Credit (A) Tax Levy
2007 $6,500,613 ($189)($471,660)$6,028,764
2008 7,045,370 (74)(451,019)6,594,277
2009 7,702,363 (161)(447,755)7,254,447
2010 9,075,425 (302)(535,625)8,539,498
2011 9,426,760 (141)(608,241)8,818,378
2012 9,136,706 (54) - 9,136,652
2013 9,536,888 (182) - 9,536,706
2014 9,911,706 166 - 9,911,872
2015 10,233,706 207 - 10,233,913
2016 10,455,756 196 - 10,455,952
(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.
194
Table 8
Collections in Total Collections to Date
Collection % of Adjusted Subsequent % of Adjusted
Amount Tax Levy Years Amount Tax Levy
$5,842,54096.91%$185,668 $6,028,20899.99%
6,400,60497.06%190,007 6,590,61199.94%
7,021,60596.79%225,248 7,246,85399.90%
8,279,06596.95%252,362 8,531,42799.91%
8,578,78497.28%223,563 8,802,34799.82%
8,932,56497.77%188,932 9,121,49699.83%
9,379,87398.36%129,935 9,509,80899.72%
9,778,63198.66%76,057 9,854,68899.42%
10,103,67598.73% - 10,103,67598.73%
Not Available Not Available N/A Not Available Not Available
Collected Within The Fiscal Year For Which
Levied
195
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Governmental Activities
GeneralGeneralGeneral
Obligation Obligation Obligation
Bonds Repaid Bonds Bonds WithTax Increment Total
Fiscal Only WithWith PledgedPledged SpecialRevenueGovernmental
Year General TaxesTax IncrementAssessments Bonds Activities
2007 $1,000,000 $775,000$3,999,296$2,890,000$8,664,296
2008 11,000,000 150,000 4,569,460 2,890,00018,609,460
2009 13,940,000 580,000 4,614,486 2,881,00022,015,486
2010 13,855,000 580,000 3,976,750 2,838,00021,249,750
2011 13,480,000 580,000 2,740,730 2,790,00019,590,730
2012 13,090,000 580,000 2,211,730 2,737,00018,618,730
2013 12,685,000 525,000 1,733,021 2,679,00017,622,021
2014 12,260,000 470,000 1,613,021 2,617,00016,960,021
2015 18,733,863 410,000 1,379,305 2,549,00023,072,168
2016 18,330,232 350,000 1,132,635 2,435,00022,247,867
(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.
196
Table 9
Business-Type ActivitiesAll Activities
General Liquor
Obligation Facility
Bonds With Lease Total Percentage
Pledged UtilityRevenueBusiness-Type Total of Personal Per
Revenues Bonds Activities All Debt Income (A)Capita (A)
$2,950,704$5,040,000$7,990,704$16,655,000 3.8%$919
2,590,540 5,040,000 7,630,54026,240,000 6.0%1,447
2,540,512 5,040,000 7,580,51229,595,998 6.7%1,612
2,128,248 4,900,000 7,028,24828,277,998 6.0%1,450
1,304,270 4,750,000 6,054,27025,645,000 5.3%1,315
1,123,270 4,595,000 5,718,27024,337,000 4.8%1,240
2,436,979 4,430,000 6,866,97924,489,000 5.1%1,245
2,401,979 4,260,000 6,661,97923,622,000 4.9%1,201
2,085,695 4,080,000 6,165,69529,237,863 6.1%1,486
2,270,695 3,895,000 6,165,69528,413,562 5.9%1,447
197
CITY OF COLUMBIA HEIGHTS, MINNESOTA
RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE
Last Ten Fiscal Years
Subtotal of
Governmental Less:Governmental Percentage
General Governmental Net General of Estimated
Fiscal Obligation Restricted for Obligation Property
Year Bonds Repayment Bonded Debt Value (B)
2007 $5,774,296 $1,745,447 $4,028,849 0.29%
2008 15,719,460 3,242,471 12,476,989 0.86%
2009 19,134,486 2,952,520 16,181,966 1.14%
2010 18,411,750 3,713,774 14,697,976 1.13%
2011 16,800,730 2,162,119 14,638,611 1.23%
2012 15,881,730 1,559,985 14,321,745 1.26%
2013 14,943,021 1,000,831 13,942,190 1.40%
2014 14,281,021 1,134,227 13,146,794 1.32%
2015 20,523,168 1,174,473 19,348,695 1.95%
2016 19,812,867 1,580,529 18,232,338 1.91%
(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.
198
Table 10
Business-typeSubtotal of
General Less:Business-type
Obligation BondsBusiness-typeNet GeneralPercentage Total
With PledgedRestricted forObligation of UtilityNet General Per
Utility RevenuesRepaymentBonded DebtRevenueBonded DebtCapita (A)
$2,950,704 $443,297$2,507,407 47.4%$6,536,256 $361
2,590,540 449,931 2,140,609 38.9%14,617,598 806
2,540,512 485,883 2,054,629 36.1%18,236,595 993
2,128,248 287,453 1,840,795 30.8%16,538,771 848
1,304,270 273,966 1,030,304 16.9%15,668,915 801
1,123,270 226,292 896,978 13.9%15,218,723 632
2,436,979 259,366 2,177,613 33.7%16,119,803 820
2,401,979 543,822 1,858,157 28.8%15,004,951 763
2,085,695 533,756 1,551,939 23.2%20,900,634 1,063
2,270,695 571,852 1,698,843 25.4%19,931,181 1,013
199
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
December 31, 2016
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit (A)Outstanding Applicable (B)Debt
Debt repaid with property taxes:
Anoka County $118,832,284 4.4847%$5,329,271
Independent School District 13 15,705,000 71.3978%11,213,024
Metropolitan Council 1,419,891,649 0.4084%5,798,837
Subtotal - overlapping debt 22,341,132
City direct debt - governmental activities 22,247,867
Total direct and overlapping debt $44,588,999
(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
200
CITY OF COLUMBIA HEIGHTS, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2016
Assessor's Estimated Market Value (A)$1,132,257,300
Debt limitation percentage (A)3%
Debt limit33,967,719
Net debt applicable to limit (B)18,330,232
Legal debt margin$15,637,487
Legal debt margin as a percentage of limit46.04%
Legal Debt Margin Calculation for Fiscal Years 2006 Through 2015
Legal Debt
Net DebtLegalMargin as a
FiscalDebtApplicable toDebtPercentage
YearLimitLimitMarginof Debt Limit
2006$24,490,232$ - $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%
201532,815,84518,460,00014,355,84543.75%
(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.
201
CITY OF COLUMBIA HEIGHTS, MINNESOTA
PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT
Last Ten Fiscal Years
200720082009
Economic Development Authority
Tax Increment Revenue Bonds Series 2007/2016:A
Tax increment revenue from applicable parcels $ - $243,159$267,142
Bond proceeds - - -
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
Coverage N/A162%178%
Economic Development Authority
Lease Revenue Bonds Series 2007B:
Annual appropriation of liquor net revenues $ - $210,264$497,200
Investment income - 8,638 71
Issuance costs and administration (expense)B - (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
Coverage N/A 51%206%
(A)2016 Tax Increment Revenue bonds were issued to refund 2007 bonds
(B)Restated issuance costs for years 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
202
Table 13
2010201120122013201420152016
$241,854$211,533$175,832$170,496$162,056$196,024$329,617
- - - - - - 2,435,000
28,118 34,351 - - - - -
$269,972$245,884$175,832$170,496$162,056$196,024$2,764,617
43,000 48,000 53,000 58,000 62,000 68,0002,549,000
151,063148,788146,263143,488140,488137,238133,688
$194,063$196,788$199,263$201,488$202,488$205,238$2,682,688
139%125%88%85%80%96%103%
$364,000$390,000$386,000$390,000$384,000$380,000$392,000
1,1051,5001,000(2,500)3,23091400
(2,556)(2,000)(2,000)(2,332)(2,200)(2,667)(2,667)
$362,549$389,500$385,000$385,168$385,030$377,424$389,733
$140,000$150,000$155,000$165,000$170,000$180,000$185,000
237,155230,630223,768213,178209,030201,155192,943
$377,155$380,630$378,768$378,178$379,030$381,155$377,943
96%102%102%102%102%99%103%
Fiscal Year
203
CITY OF COLUMBIA HEIGHTS, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14
Last Ten Fiscal Years
Per
Capita
Fiscal Personal Personal Unemployment
Year Population Income Income Rate
2007 18,124 $438,818,288 $24,212 4.5%
2008 18,137 439,133,044 24,212 5.5%
2009 18,361 444,556,532 24,212 8.4%
2010 19,496 472,037,152 24,212 8.0%
2011 19,568 487,243,200 24,900 6.8%
2012 19,667 507,408,600 25,800 5.9%
2013 19,667 478,616,112 24,336 5.0%
2014 19,674 502,434,612 25,538 4.1%
2015 19,758 497,427,408 25,176 3.6%
2016 19,632 478,137,360 24,355 3.9%
Sources are as follows:
Population: Data for the years 2007-2009 provided by the Metropolitan Council.
Data for 2010 is from the 2010 US Census. Data for 2011-2016 is estimated by the US Census Bureau.
Per Capita Income:
Data for 2007-2016 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 individual communities within counties.
204
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%61910.33%
Independent School District 1349520.27%43520.23%
Crestview Lutheran Home27130.15%23130.12%
City of Columbia Heights20540.11%20340.11%
Fairview - Columbia Heights Clinic12050.06%10850.06%
Unique Thrift Store10060.05%6580.04%
Rainbow FoodsN/AN/AN/A7860.04%
Invest Cast Inc8670.05%7070.04%
La Casita Mexican Restaurant45100.02%6290.03%
Bobby & Steve's Auto World5380.03%N/AN/AN/A
US Post OfficeN/AN/AN/A49100.03%
SAVERS4890.03%N/AN/AN/A
Total 2,0231.09%1,9201.03%
(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. 2016 data for other employers was
compiled from ReferenceUSA, written and telephone survey (August 2014), and the Minnesota Department of Employment
and Economic Development.
20072016
205
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program2007200820092010
General government
Mayor/council 5555
Administration 4 4 5 10
Finance 13 13 14 13
Public safety:
Police 31 34 35 36
Fire 33 29 31 30
Public works 16 17 18 17
Culture and recreation:
Library 22 25 21 19
Parks 5555
Recreation 16 17 14 13
Community development 7665
Water 5444
Sewer 4333
Refuse - - - -
Storm sewer - 1 1 1
Liquor 42 38 40 41
Total 203 201 202 202
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,
206
Table 16
201120122013201420152016
555555
11 11 10 4 4 4
14 13 13 13 13 13
35 37 36 35 35 37
32 33 31 31 30 29
16 16 15 21 23 23
21 20 21 21 18 18
555555
16 15 15 15 15 15
544446
444444
334444
- - - - - -
1 1 1 1 1 1
39 40 40 40 41 41
207 207 204 203 202 205
Employees as of December 31,
207
CITY OF COLUMBIA HEIGHTS, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2007200820092010
General government:
Resolutions approved by City Council198247170115
Ordinances adopted by City Council12261212
Public safety:
Police:
Part I crimes (A)1,2461,098882768
Part II crimes (A)3,1442,9661,2751,683
Fire:
Emergency medical calls (A)1,8882,0931,6941,664
Fire calls (A)445385660846
Inspections & Related Actions (A)4,6036,9553,7245,720
Public works:
Street paving and patching (tons of asphalt)1,9101,4151,0331,054
Street sweeping (tons of debris)648420581638
Trees removed357175121180
Culture and recreation:
Library: (E)
Items in collection71,59472,42069,70272,055
Circulation125,222126,271120,705131,885
Reference inquiries13,71513,79317,77114,352
Parks and recreation:
Athletics participants (B)1,5371,5101,6021,500
Other programs, estimated attendance (C)8,0008,0008,0008,000
Number of paid room rentals185190210160
Community development:
Number of business licenses issued306363379393
Number of building permits issued (D)1,3131,1131,1871,351
Construction value of permits issued$22,230,118$21,917,792$13,376,732$14,481,712
Water:
Consumption (thousands of gallons)538,844518,791518,299516,068
Sewer (sanitary):
Wastewater (thousands of gallons, 12 months ended June 30)495,580511,090437,520444,820
Miles of line cleaned/rodded/root-sawed27293926
Refuse:
Refuse (tons)6,5877,3237,2396,770
Recycling (tons)1,5221,3181,0361,699
Yardwaste (tons)6547277731,100
Storm sewer:
No operating indicators availablenot availnot availnot availnot avail
Liquor:
Number of units sold768,000920,1211,029,1391,028,160
(A)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.
(B)This operating indicator includes duplicate counts for participation in more than one team/league by some persons.
(C)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.
(D)This operating indicator includes inspection permits issued for new construction,
building alteration/addition, plumbing, heating, street excavation and sign installation.
(E)In 2016, a new library was constructed. The library was closed for 4 weeks for relocation and had roughly 200 less
public service hours.
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
208
Table 17
201120122013201420152016
159159949896114
15532911
755742674684673496
1,5761,4081,3261,0521,018934
1,7221,8391,9421,8111,9801,963
764752852729787791
6,0735,4135,2495,0774,8555,205
8691,029224782696703
712350574540470448
180157284217282216
71,30372,98576,65878,13773,90757,531
125,051129,624121,827117,888109,018116,201
16,60114,54716,06813,20813,92312,805
4,2994,2325,5345,12510,83611,871
8,0009,00010,48510,63722,67926,986
177135139140153143
334323346339359348
1,2901,0581,3031,2122,1641,458
$7,986,467$7,203,199$7,388,271$7,609,375$25,476,137$35,252,845
454,223495,870461,520449,415455,527453,736
485,000455,210455,310467,680414,930423,920
252633332628
6,7896,5636,6846,6486,8957,234
1,6051,6101,6901,6701,8241,633
1,2701,2701,1691,2501,4501,385
not availnot availnot availnot availnot availnot avail
1,060,1501,103,7901,045,1881,038,9851,090,1311,106,305
209
CITY OF COLUMBIA HEIGHTS, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program200720082009
General government:
City hall square footage 28,53028,53028,530
Public safety:
Police Stations 1 1 1
Fire Stations 1 1 1
Public Safety Bldg square footage Note A Note A Note A
Public works:
Office and shop square footage 31,075 31,075 31,075
Trunk highway miles 3 3 3
County road miles 6 6 6
City street miles 62 62 62
Alley miles 19 19 19
Culture and recreation:
Libraries 1 1 1
Library square footage 7,896 7,896 7,896
Parks 13 13 13
Playgrounds 11 11 11
Gymnasiums square footage - - 12,726
Mtg & banquet rooms square footage 22,000 22,000 22,000
Community development:
Senior high-rise apartments (B)145 145 145
Water:
Watermain miles 66 66 66
Sewer:
Sanitary sewer miles 59 59 59
Refuse:
Recycling centers 1 1 1
Storm sewer:
Storm sewer miles 34 34 34
Liquor:
Retail stores owned 1 3 3
Retail stores leased 2 - -
(A)For years prior to 2010, the police and fire stations are included in the City Hall square footage reported above.
Beginning in 2010, the police and fire stations were in a separate public safety facility.
(B)In 2015, Senior high-rise apartment building was sold
Sources: Various City departments.
Fiscal Year
210
Table 18
2010201120122013201420152016
28,53028,53028,53028,53028,53028,53028,530
1111111
1111111
47,08847,08847,08847,08847,08847,08847,088
31,07531,07531,07531,07531,07531,07531,075
3333333
6666666
62 62 62 62 62 62 62
19 19 19 19 19 19 19
1111111
7,896 7,896 7,896 7,896 7,896 7,89622,600
13 13 13 13 13 13 15
11 11 11 11 11 11 12
12,72612,72612,72612,72612,72612,72612,726
22,00022,00022,00022,00022,00022,00022,000
145 145 145 145 145 - -
66 66 66 66 66 66 66
59 59 59 59 59 59 59
1111111
34 34 34 34 34 34 34
3333333
- - - - - - -
Fiscal Year
211
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212
IV. OTHER REQUIRED REPORTS SECTION
213
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214
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, 2016, 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 1, 2017.
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 1, 2017
215
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216
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, 2016, 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 1, 2017.
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.
217
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 1, 2017
218
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, 2016, and have
issued our report thereon June 1, 2017. 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 1, 2017
219
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, 2016
Line
ItemAccount DescriptionTotal Projects
Assets:
Current assets:
111 Cash - unrestricted $2,075
100 Total cash 2,075
Accounts and notes receivable:
125 Accounts receivable - miscellaneous -
120 Total receivables, net of allowance0
150 Total current assets 2,075
Noncurrent assets:
171Notes, Loans and Morgages Receivable - Non-Current5,200,000
180 Total noncurrent assets5,200,000
190 Total assets 5,202,075
Liabilities:
Current liabilities:
312 Accounts payable <= 90 days$2,075
331 Accounts payable - HUD PHA programs5,200,000
310 Total current liabilities5,202,075
350 Total noncurrent liabilities 0
300 Total liabilities 5,202,075
Net Position:
508.4 Net investment in capital assets -
512.4 Unrestricted net position -
513 Total net position $0
220
CITY OF COLUMBIA HEIGHTS, MINNESOTA
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FINANCIAL DATA SCHEDULE
As of And For The Year Ended December 31, 2016
Page 2 of 2
Public HousingPublic Housing
OperatingCapital Fund
Line SubsidyProgram
ItemAccount Description14.85014.872Total Projects
Revenue:
703 Net tenant rental revenue$ - $ - $ -
704 Tenant revenue - other - - -
706 HUD PHA grants - - -
715 Other revenue887 - 887
711 Investment income -unrestricted2,897 - 2,897
700 Total revenue3,784 0 3,784
Expenses:
911 Administrative salaries - - -
912 Auditing fees3,543 - 3,543
913 Outside management fees - - -
914 Advertising and marketing - - -
916 Office Expenses - - -
917 Legal expense - - -
919 Other expense - - -
931 Water - - -
932 Electricity - - -
933 Gas - - -
936 Sewer - - -
938 Other utilities expense241 - 241
942 Ordinary maintenance and operations - materials and other - - -
943 Ordinary maint. and operations contracts - HVAC - - -
943 Ordinary maint. and operations contracts - snow removal - - -
943 Ordinary maint. and operations contracts - elevator - - -
943 Ordinary maint. and operations contracts - grounds - - -
943 Ordinary maint. and operations contracts - unit turnaround - - -
943 Ordinary maint. and operations contracts - extermination - - -
943 Ordinary maint. and operations contracts - janitorial - - -
943 Ordinary maint. and operations contracts - routine maintenance - - -
943 Ordinary maint. and operations contracts - miscellaneous - - -
952 Protective services - - -
961 Insurance premiums - - -
962 Other general expenses - - -
963 Payments in lieu of taxes - - -
969 Total operating expenses3,784 0 3,784
974 Depreciation - -
900 Total expenses3,784 0 3,784
1001Operating transfers in - - -
1002Operating transfers out - - -
1008Special Items (net gain/loss) - - -
1010 Total other financing sources (uses)0 0 0
1000Excess (deficiency) of revenue over expenses and
and other financing uses (sources)$0$0$0
Memo account information:
1103 Beginning equity$ - $ - $ -
1120 Unit months available - - -
1121 Number of unit months leased - - -
221
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, 2016
FY 2014FY 2015FY 2016
MN 46P105501-14
A.The actual modernization costs are as follows:
Funds approved85,284$ -$ -$
Funds (expended)(85,284)- -
Excess of funds approved (expended)$0$0$0
Funds advanced - HUD CFP Grants85,284$ -$ -$
Funds (expended):
In prior years(85,284)$ -$ -$
In current year- - -
Excess of funds advanced (expended)$0$0$0
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