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Home My WebLink About2019 AML CITY OF COLUMBIA HEIGHTS, MINNESOTA AUDIT MANAGEMENT LETTER December 31, 2019 ‐ This page intentionally left blank ‐ 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com To the Honorable Mayor and Members of the City Council City of Columbia Heights, Minnesota We have completed the 2019 audit of the financial statements of the City of Columbia Heights, Minnesota and have issued our report thereon. Our Independent Auditor’s Report is included in the City’s Comprehensive Annual Financial Report (CAFR). Other reports included in the CAFR are:  Report on Compliance with Minnesota Legal Compliance Audit Guide for Cities  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 This Management Letter provides the City an independent review and analysis of City finances. We also issue a separate Management Letter for the Economic Development Authority. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 15, 2020 ‐ This page intentionally left blank ‐ City of Columbia Heights, Minnesota Audit Management Letter Report Summary 2 REPORT SUMMARY Several reports are issued in conjunction with the audit. A brief summary of each report is as follows: Report Name Elements of Report Overview Required Reports Comprehensive Annual Financial Report (CAFR)  Financial statements  Footnotes  Supplemental information  Unmodified (“clean”) opinion on the Basic Financial Statements Report on Internal Control over Financial Reporting and on Compliance and Other Matters Results of testing  Internal controls over financial reporting  Compliance with laws, regulations, contracts and grants  No reported findings State Legal Compliance Report  Results of testing certain provisions of Minnesota Statutes  No reported findings City of Columbia Heights, Minnesota Audit Management Letter Summary of Financial Activity 3 SUMMARY OF FINANCIAL ACTIVITY The financial statement document is very complex and individual fund information is presented in several different sections of the document. The schedule below is a financial summary of all governmental funds. Increase Interfund(Decrease) inFund TransfersFundBalance Fund TypeRevenues Expenditures(Net)Balance12/31/2019 General Fund$12,579,000$11,821,000$279,000$1,037,000$7,876,000 Special Revenue Funds2,168,0001,792,000(265,000)111,0004,007,000 Debt Service Funds2,382,0004,334,00088,000(1,864,000)3,413,000 Capital Project Funds2,658,0001,860,000345,0001,143,00014,808,000 Total$19,787,000$19,807,000$447,000$427,000$30,104,000 City of Columbia Heights, Minnesota Audit Management Letter General Fund 4 GENERAL FUND The General Fund of the City is maintained to account for the current operating and capital outlay expenditures common to all cities. These basic services include (but are not limited to) public safety, public works, culture and recreation, and general government. State aids and property taxes account for approximately 84% of the total revenue of the General Fund. A history of General Fund revenue is as follows: LGA & MVHC Property Taxes All Other Total YearAmountPercentAmountPercentAmountPercentAmountPercent 20101,066,635 11%6,770,957 72%1,629,746 17%9,467,338 100% 20111,067,990 11%7,263,658 73%1,650,362 17%9,982,010 100% 2012898,730 9%7,626,258 75%1,584,537 16%10,109,525 100% 2013895,180 9%8,142,980 79%1,240,267 12%10,278,427 100% 20141,104,176 10%8,551,642 75%1,744,197 15%11,400,015 100% 20151,191,541 10%8,781,533 77%1,505,143 13%11,478,217 100% 2016475,000 4%8,751,484 81%1,514,087 14%10,740,571 100% 2017475,000 4%8,981,751 82%1,521,447 14%10,978,198 100% 2018475,000 4%9,601,516 82%1,582,277 14%11,658,793 100% 2019453,631 4%10,156,071 80%1,968,842 16%12,578,544 100% General Fund - Sources of Revenue City of Columbia Heights, Minnesota Audit Management Letter General Fund 5 A graph of General Fund revenue by source is as follows: $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2010201120122013201420152016201720182019 LGA & MVHC Property Taxes All Other City of Columbia Heights, Minnesota Audit Management Letter General Fund 6 A chart of 2019 expenditures by function is as follows: City of Columbia Heights, Minnesota Audit Management Letter General Fund 7 The fund balance of the General Fund at December 31, 2019 was $7,875,754. During 2019, the fund balance of the General Fund increased by $1,036,082 as follows: BudgetBudget OriginalAmendmentsFinalActualVariance Revenues and transfers in: Property taxes$10,051,000$ - $10,051,000$10,156,071$105,071 Licenses and permits353,300 - 353,300371,36918,069 Intergovernmental930,30015,132 945,432970,49525,063 Charges for services599,50025,650 625,150614,312(10,838) Fines and forfeitures86,000 - 86,000 116,75930,759 Investment income90,000 - 90,000 330,194240,194 Other14,50011,550 26,05019,344(6,706) Transfers in472,400 - 472,400472,400 - Total12,597,00052,33212,649,33213,050,944401,612 Expenditures and transfers out: General government2,231,205 - 2,231,2052,044,059187,146 Public safety6,600,40052,332 6,652,7326,368,806283,926 Public works1,771,803 - 1,771,8031,541,165230,638 Parks and recreation1,897,069 - 1,897,0691,794,915102,154 Capital outlay - - - 72,399(72,399) Transfers out158,000 - 158,000193,518(35,518) Total 12,658,47752,33212,710,80912,014,862695,947 Net change in fund balance($61,477)$0($61,477)$1,036,082$1,097,559 City of Columbia Heights, Minnesota Audit Management Letter General Fund 8 The City’s General Fund balance has been as follows for the past several years: Year EndedIncrease December 31,Fund Balance(Decrease) 2010$5,342,239$546,088 20115,869,055526,816 20126,076,909207,854 20136,397,277320,368 20147,373,820976,543 20157,011,902(361,918) 20167,444,227432,325 20177,701,808257,581 20186,839,672(862,136) 20197,875,7541,036,082 City of Columbia Heights, Minnesota Audit Management Letter General Fund 9 Property taxes and state aids account for approximately 84% of the revenue of the General Fund. Property taxes and state aids are not received until July and December of each year (i.e., the second half of the year). As a result, the City is required to have sufficient reserves at the beginning of the year to fund operations of the first half of the year. As such, the City adopted resolution 95-40 establishing a General Fund cash flow working capital goal. This goal is an amount equal to forty-five percent of the ensuing year’s budgeted expenditures. A summary of components of the General Fund’s balance is as follows: Fund Balance Component20182019 Nonspendable - prepayments$136,962$137,545 Assigned - ensuing year appropriation61,47752,471 Unassigned - working capital5,696,3156,117,287 Unassigned944,9181,568,451 Total fund balance - December 31$6,839,672$7,875,754 The amount of General Fund balance at December 31, 2019 was sufficient to fulfill the City’s working capital goal. The working capital is calculated as follows: 2020 budgeted expenditures$13,593,971 Working capital goal percentagex 45% Working capital goal6,117,287 Balance available7,685,738 Amount of fund balance over working capital goal$1,568,451 City of Columbia Heights, Minnesota Audit Management Letter Special Revenue Funds 10 SPECIAL REVENUE FUNDS The financial statements of the Special Revenue Funds are presented in Statements 19 through 30 of the 2019 Comprehensive Annual Financial Report. Special Revenue Funds are a classification of funds to account for revenues (and expenditures related thereto) segregated by City policy or Federal or State statutes for specific purposes. The City maintained the following Special Revenue Funds during 2019: Revenue ExpendituresInterfundIncrease and Otherand OtherTransfers(decrease)Fund Balance FundSourcesUses(Net)in Fund Balance12/31/19Comments 1 Special Revenue: 2Planning and Inspections Fund$283,544$447,859$119,000($45,315)$353,243 2019 budget was balanced. 2019 license and permit revenue was less than budget by $93k. 3Cable Television242,38498,425(64,500)79,4591,060,372 2019 budget anticpated an increase of $13k. Revenues included $25k of investment income which is not budgeted and expenditures were under budget by $41k. 4Police Forfeiture - - - - 16,759 5Library992,821957,588(3,700)31,533694,459 2019 budget was balanced. Personal service expenditures were less than budgeted by $33k. 6Special Projects236,127497(300,000)(64,370)764,541 The transfer-out of $300k was to the Capital Improvement Development Fund 7After-School Programs9,61615,702 - (6,086)105,336 2019 budget anticpated a decrease in fund balance of $22k. 2019 expenditures were less than budget by $28k. 8Downtown Parking Fund53,81550,704 - 3,11111,873 9Contributed Projects - Recreation 28,49511,294 - 17,201193,975 10Contributed Projects - Other14,15925,872 - (11,713)221,836 11Anoka County Comm. Dev. Programs12,003 - - 12,00366,839 12Twenty-first Century Arts 39,39739,390 - 77 13Housing and Redevelopment Authority: 14 Parkview Villa North and South - - - - - 15Economic Development Authority Administration 255,506144,897(16,000)94,609517,981 16 Total$2,167,867$1,792,228($265,200)$110,439$4,007,221 City of Columbia Heights, Minnesota Audit Management Letter Debt Service Funds 11 DEBT SERVICE FUNDS Debt Service Funds are a type of governmental fund used to account for the accumulation of resources for the payment of interest and principal on debt (other than Proprietary Fund debt). A summary of bonded debt at December 31, 2019 is as follows: FundDebt Balance atPayable atSource of Bond Issue12/31/1912/31/19Repayment Improvement Bonds: Taxable G.O. Housing Improvement Area Series 2008A (315)$241,507$420,000Special assessments (receivable was $362,371 at 12/31/19) G.O. Improvement / Revenue Bonds 2013A (345)115,114130,000Special assessments General Obligation Bonds: G.O. Library Bonds of 2015A (346)395,2836,075,000Property taxes G.O. Public Safety Center Bonds of 2017B (347)446,6077,970,000Property taxes G.O. Public Facilities Bonds of 2018A (348)236,3072,070,000Property taxes and special assessments Total$1,434,818$16,665,000 City of Columbia Heights, Minnesota Audit Management Letter Capital Project Funds 12 CAPITAL PROJECT FUNDS The fund balances of the Capital Project Funds were as follows at December 31, 2019: Revenue ExpendituresInterfund 1 Capital Project: 2Municipal State Aid Street $539,820$520,575$ - $19,245$604,487 This fund accounts for the use of MSA monies 3EDA Redevelopment Project Fund445,19857,4251,082,6261,470,3992,494,238 This fund received a transfer of monies from the Capital Improvement Development Fund for the purpose of combining funding from multiple sources for the purpose of acquiring commercial property 4Capital Improvements General Government Buildings667,43781,618 23,000608,8194,887,960 2019 revenue consists primarliy of a portion of the City's LGA received form the State 5Capital Equipment Replacement General Government156,463995,933 24,388(815,082)3,153,440 2019 expenditures include police and fire radios ($250k), Ambulance ($204k), SCBA units ($214k), and wood chipper ($64k). 6Capital Improvements PIR Fund526,924192,887(100,725)233,312869,892 2019 revenue is primarily special assessments. 2019 expenditures included Alley construction. 7Capital Improvement Development177,066 - (734,726)(557,660)866,309 2019 interfund transfers include $1M to EDA Redevelopment Project Fund. See comment above. 8Capital Improvement Parks59,0036,314 - 52,689380,263 9Infrastructure Replacement87,5035,40650,000132,0971,551,279 10 Total$2,659,414$1,860,158$344,563$1,143,819$14,807,868 City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 13 ENTERPRISE FUNDS Cash Flows The financial statements include a schedule of Enterprise Funds cash flows. The cash flow schedule discloses cash generated by operating activities and the use of those cash flows for debt service and capital asset acquisition. Below is a summary of Enterprise Fund cash flows: Storm WaterSewerRefuseSewerLiquorTotal Cash flows from operating activities$917,949$247,606$141,848($198,581)$438,662$1,547,484 Cash flows from noncapital financing activities(162,500)63,78818,390350,253(141,370)128,561 Cash flows from capital activities: Debt service(132,848)(60,338) - (81,127)(312,891)(587,204) Purchase of capital assets(46,313)(44,245) - 40,987(12,810)(62,381) Cash flows from investing activities: Investment income19,10025,60135,90012,10131,600124,302 Net change in cash and investments$595,388$232,412$196,138$123,633$3,191$1,150,762 Cash and investments - December 31$1,319,126$1,231,226$1,639,518$507,301$1,776,204$6,473,375 City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 14 Presented below is a graph of the year-end cash balances of each utility enterprise fund: As shown above, the year-end cash balances declined from 2015 through 2017, but then increased in the past two years. We recommend the City continue to consider the appropriate amount of the year-end cash balance needed in each fund. A portion of this pattern reflects bonds proceeds received November 2013, that were used for utility construction in 2015 and 2018. The sharp increase in water fund cash from 2017 to 2018 is primarily the result of deferring the annual watermain lining program for one year. City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 15 Municipal Liquor Fund 609 Comparison With Other Municipal Liquor Stores The Office of the State Auditor (OSA) annually publishes “An Analysis of Minnesota Municipal Liquor Store Operations.” The most recent report available is for 2018. The following analysis compares Columbia Heights’ liquor operations with those reported in the OSA report. It should be noted that the following comparisons are strictly a comparison of amounts reported. There are a number of factors that affect operating results that are not included in this comparison. These factors include the mix of product sold and philosophy regarding sales techniques such as high volume/lower margin. The following table shows the top 10 ranked cities in terms of gross sales for the most recent 6 years available: 201320142015201620172018 1LakevilleLakevilleLakevilleLakevilleLakevilleLakeville 2EdinaEdinaEdinaEdinaEdinaEdina 3Eden PrairieEden PrairieEden PrairieEden PrairieRichfieldRichfield 4RichfieldRichfieldRichfieldRichfieldEden PrairieEden Prairie 5Apple ValleyApple ValleyApple ValleyApple ValleyApple ValleyAp ple Valley 6Columbia HeightsColumbia HeightsColumbia HeightsColumbia HeightsColumbia HeightsColumbia Heights 7St. AnthonyElk RiverBrooklyn CenterElk RiverElk RiverElk River 8Elk RiverSaint AnthonySaint AnthonyDetroit LakesDetroit LakesDetroit Lakes 9Brooklyn CenterBrooklyn CenterFridleyBrooklyn CenterBrooklyn CenterBrooklyn Center 10Fergus FallsDetroit LakesFarmingtonHutchinsonWayzataWayzata City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 16 An analysis of 2019 activity is as follows: Top ValuTop Valu IIHeights Liquor2019 Total AmountPercentAmountPercentAmountPercentAmountPercent Operating revenues$4,252,877100.0% $3,173,600100.0% $1,488,401100.0% $8,914,878100.0% Cost of goods sold3,193,55875.1% 2,374,66074.8% 1,117,80375.1% 6,686,02175.0% Gross margin1,059,31924.9% 798,94025.2% 370,59824.9% 2,228,85725.0% Other operating expenses835,05219.6% 670,53121.1% 219,47414.7% 1,725,05719.4% Net income from operations$224,2675.3% $128,4094.0% $151,12410.2% $503,8005.7% City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 17 Gross Margin Analysis Gross margin measures the sales less the direct cost of products sold. A comparison to state averages for Minnesota municipal off-sale operations is as follows: CostGross MarginMetro Salesof SalesAmountPercentAverage(1) 2013$8,747,084$6,577,631$2,169,45324.8% 26.1% 20148,415,3716,343,6632,071,70824.6% 25.9% 20158,399,9436,338,8912,061,05224.5% 25.3% 20168,468,0986,392,0902,076,00824.5% 25.6% 20178,422,4526,289,2952,133,15725.3% 26.0% 20188,588,5766,448,2232,140,35324.9% 26.5% 20198,914,8786,686,0212,228,85725.0% Not Available (1)Source: Minnesota Office of the State Auditor - Metropolitan Area Off-Sale Operations Operating Expenses Operating expenses for the past seven years have been as follows: Percent of Sales YearAmountCityMetro Avg. 2012$1,465,68316.6% 16.5% 20131,490,27917.7% 16.8% 20141,536,98218.3% 18.6% 20151,534,70318.1% 19.4% 20161,686,51320.0% 20.5% 20171,614,15819.2% 19.9% 20181,708,03419.9% 19.7% 20191,725,05719.4% Not Available City of Columbia Heights, Minnesota Audit Management Letter Enterprise Service Funds 18 Net Income from Operations Net income for the past seven years is as follows: Percent of Sales CityMetro YearAmountCityAverage 2012$683,8937.8%8.5% 2013679,1747.7%8.8% 2014534,7266.1%7.3% 2015526,349 6.3%5.9% 2016389,495 4.6%5.0% 2017518,9996.2%5.9% 2018432,3195.0%8.8% 2019503,8005.7%Not available City of Columbia Heights, Minnesota Audit Management Letter Internal Service Funds 19 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 to another department within the City. During 2019, the City maintained the following Internal Service Funds: MunicipalEmployee ServiceInformationRiskBenefits CenterSystemsManagementFund20192018 Assets: Cash$997,840$615,271$1,248,934$1,123,708$3,985,753$4,074,545 Other current assets42,78517,14365,717 - 125,645135,569 Capital assets1,006,26034,455 - - 1,040,7151,095,060 Total assets2,046,885 666,869 1,314,651 1,123,708 5,152,113 5,305,174 Deferred outflows of resources: Related to pensions - - - 3,719,1313,719,1315,290,360 Total assets and deferred outflows $2,046,885$666,869$1,314,651 $4,842,839$8,871,244$11,255,534 Liabilities, Deferred Inflows, and Net Position Liabilities: Current liabilities$60,057$34,937$2,000$ - $96,994$80,804 Compensated absences payable - - - 1,123,7081,123,7081,353,178 Other postemployment benefits payable - - - 1,420,6351,420,6351,252,872 Net pension liability/deferred inflows - - - 7,958,0967,958,0968,059,561 Total liabilities60,05734,9372,00010,502,43910,599,43310,746,415 Deferred inflows of resources: Related to pensions - - - 6,006,5786,006,5788,299,090 Net position1,986,828631,9321,312,651(11,666,178)(7,734,767)(7,819,971) Total liabilities, deferred inflows and net position$2,046,885$666,869$1,314,651$4,842,839$8,871,244$11,225,534 Totals City of Columbia Heights, Minnesota Audit Management Letter Excellence in Financial Reporting 20 CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The City submits the Comprehensive Annual Financial Report to the Government Finance Officers Association of the United States and Canada (GFOA) for a review. The program is a review of all facets of financial reporting for disclosure, clarity and consistency with national reporting standards. The City received the award for each year since 1990. We commend the City for this achievement. City of Columbia Heights, Minnesota Audit Management Letter Communication With Those Charged With Governance 21 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE 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 (the City) for the year ended December 31, 2019. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 6, 2020. Professional standards also require that we communicate to you the following information related to our audit. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those City of Columbia Heights, Minnesota Audit Management Letter Communication With Those Charged With Governance 22 expected. The most sensitive estimates affecting the City’s financial statements was management’s estimates of the net pension liability, the pension related deferred inflows and outflows of resources, and the liability reported for OPEB. Estimates related to these items are based on actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosures most likely to be considered sensitive are Note 10 – Defined Benefit Pension Plans, Note 12 – Post Employment Benefits Other than Pensions (OPEB), and Note 16 – Subsequent Events and Uncertainties. The disclosures in the financial statements are neutral, consistent and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. City of Columbia Heights, Minnesota Audit Management Letter Communication With Those Charged With Governance 23 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 15, 2020. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. City of Columbia Heights, Minnesota Audit Management Letter Communication With Those Charged With Governance 24 Other Matters We applied certain limited procedures to the budgetary comparison schedule, schedule of changes in the total OPEB liability and related ratios, schedule of employer’s proportionate share of plan net pension liability and schedule of pension contributions, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary financial information section, which accompanies the financial statements but is not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and the other information sections, which accompany the financial statements but are not RSI. Such information has 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 it. City of Columbia Heights, Minnesota Audit Management Letter Communication With Those Charged With Governance 25 Other Reports Various reports on compliance and internal controls are contained in the Other Required Reports section of the audited financial statements document. Restriction on Use This information is intended solely for the information and use of management, members of the City Council and others within the City of Columbia Heights, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. Ci t y o f C o l u m b i a H e i g h t s , M i n n e s o t a Au d i t M a n a g e m e n t L e t t e r Appendix A 26 Re v e n u e E x p e n d i t u r e s I n t e r f u n d I n c r e a s e ( D e c r e a s e ) i n F u n d B a l a n c e / C a s h F u n d a n d O t h e r a n d O t h e r T r a n s f e r s F u n d B a l a n c e / N e t P o s i t i o n B a l a n c e Fu n d N o . S o u r c e s U s e s ( N e t ) N e t P o s i t i o n 1 2 / 3 1 / 1 9 1 2 / 3 1 / 1 9 1 G e n e r a l 10 1 $ 1 2 , 5 7 8 , 5 4 4 $ 1 1 , 8 2 1 , 3 4 4 $ 2 7 8 , 8 8 2 $ 1 , 0 3 6 , 0 8 2 $ 7 , 8 7 5 , 7 5 4 $ 8 , 1 6 8 , 3 5 9 2 S p e c i a l R e v e n u e : 3 P l a n n i n g a n d I n s p e c t i o n s F u n d 2 0 1 2 8 3 , 5 4 4 4 4 7 , 8 5 9 1 1 9 , 0 0 0 ( 4 5 , 3 1 5 ) 3 53 , 2 4 3 4 3 9 , 1 1 3 4 C a b l e T e l e v i s i o n 2 2 5 2 4 2 , 3 8 4 9 8 , 4 2 5 ( 6 4 , 5 0 0 ) 7 9 , 4 5 9 1 , 0 6 0 , 3 7 2 1 , 0 0 8 , 5 82 5 P o l i c e F o r f e i t u r e 2 6 5 - - - - 1 6 , 7 5 9 2 7 , 4 1 6 6 L i b r a r y 2 4 0 9 9 2 , 8 2 1 9 5 7 , 5 8 8 ( 3 , 7 0 0 ) 3 1 , 5 3 3 6 9 4 , 4 5 9 7 3 4 , 6 8 8 7 S p e c i a l P r o j e c t s 2 2 6 2 3 6 , 1 2 7 4 9 7 ( 3 0 0 , 0 0 0 ) ( 6 4 , 3 7 0 ) 7 6 4 , 5 4 1 7 9 5 , 0 4 1 8 A f t e r - S c h o o l P r o g r a m s 2 6 1 9 , 6 1 6 1 5 , 7 0 2 - ( 6 , 0 8 6 ) 1 0 5 , 3 36 9 7 , 4 9 8 9 D o w n t o w n P a r k i n g F u n d 2 2 8 5 3 , 8 1 5 5 0 , 7 0 4 - 3 , 1 1 1 1 1 , 8 7 3 30,283 1 0 C o n t r i b u t e d P r o j e c t s - R e c r e a t i o n 8 8 1 2 8 , 4 9 5 1 1 , 2 9 4 - 1 7 , 2 0 1 1 9 3 , 9 7 5 1 9 4 , 5 4 5 1 1 C o n t r i b u t e d P r o j e c t s - O t h e r 8 8 3 1 4 , 1 5 9 2 5 , 8 7 2 - ( 1 1 ,7 1 3 ) 2 2 1 , 8 3 6 2 2 6 , 4 0 6 1 2 T w e n t y - f i r s t C e n t u r y A r t s 2 6 2 3 9 , 3 9 7 3 9 , 3 9 0 - 7 7 - 1 3 A n o k a C o u n t y C o m m . D e v . P r o g r a m s 2 0 2 1 2 , 0 0 3 - - 1 2 , 0 0 3 6 6 , 8 3 9 1 2 , 0 4 6 1 4 H o u s i n g a n d R e d e v e l o p m e n t A u t h o r i t y : 1 5 P a r k v i e w V i l l a N o r t h a n d S o u t h 2 0 3 / 2 1 3 - - - - - - 16 E D A : 17 E c o n o m i c D e v e l o p m e n t A u t h o r i t y A d m i n i s t r a t i o n 2 0 4 2 5 5 , 5 0 6 1 4 4 , 8 97 ( 1 6 , 0 0 0 ) 9 4 , 6 0 9 5 1 7 , 9 8 1 6 0 8 , 2 2 7 18 D e b t S e r v i c e : 19 G . O . P u b l i c F a c i l i t i e s B o n d s 2 0 1 8 A 3 4 8 2 0 6 , 5 6 2 3 8 , 9 6 7 6 4 , 4 0 6 2 3 2 , 0 01 2 3 6 , 3 0 7 2 3 4 , 6 4 8 20 G . O . H o u s i n g I m p r o v e m e n t A r e a B o n d s 2 0 0 8 A 3 1 5 1 0 9 , 6 7 9 9 8 , 4 6 2 - 1 1 , 2 1 7 2 4 1 , 5 0 7 2 4 1 , 2 0 7 2 1 G . O . P u b l i c S a f e t y C e n t e r B o n d s 2 0 0 8 B 3 4 3 - - - - - - 2 2 G . O . P u b l i c F a c i l i t i e s B o n d s 2 0 0 9 A 3 4 4 - 2 , 2 3 7 , 8 8 1 (4 1 , 9 1 7 ) ( 2 , 2 7 9 , 7 9 8 ) - - 23 G . O . I m p r o v e m e n t / R e v e n u e 2 0 1 3 A 3 4 5 1 , 6 0 0 4 8 , 2 0 9 6 5 , 8 5 4 1 9 , 2 4 5 1 1 5 , 1 14 1 1 5 , 0 1 4 2 4 G . O . L i b r a r y B o n d s 2 0 1 5 A 3 4 6 4 5 9 , 4 6 5 4 5 8 , 5 3 0 - 9 3 5 3 9 5, 2 8 3 3 9 3 , 1 2 3 2 5 G . O . P u b l i c S a f e t y C e n t e r B o n d s 2 0 1 7 B 3 4 7 5 2 2 , 0 7 8 5 3 2 , 2 5 6 - ( 1 0 , 1 7 8 ) 4 4 6 , 6 0 7 4 4 3 , 7 5 3 26 E D A : 2 7 T a x I n c r e m e n t B o n d s 3 7 6 7 8 , 2 5 5 3 , 4 4 5 - 7 4 , 8 1 0 6 0 5 , 2 5 0 2 6 1 , 7 5 6 2 8 M u l t i - U s e R e d e v e l o p m e n t P l a n 3 8 5 3 6 , 7 8 0 5 , 6 4 7 - 3 1, 1 3 3 1 8 0 , 7 9 8 1 8 2 , 4 1 9 2 9 T I F T r a n s i t i o n B l o c k 3 8 9 5 5 , 3 7 2 5 0 , 0 5 7 - 5 , 3 1 5 7 1 , 2 2 8 9 5 , 1 4 7 3 0 T I F 4 7 t h a n d C e n t r a l A v e n u e 3 7 1 2 0 2 , 1 9 9 2 3 1 , 5 4 6 - ( 2 9 , 3 4 7 ) 5 2 8 , 2 5 1 5 2 7 , 3 5 4 3 1 T I F H u s e t P a r k A r e a F u n d 3 7 2 6 6 7 , 9 9 6 6 1 9 , 8 7 5 - 4 8 ,1 2 1 7 3 6 , 2 4 2 8 6 4 , 3 8 4 Ci t y o f C o l u m b i a H e i g h t s , M i n n e s o t a Au d i t M a n a g e m e n t L e t t e r Appendix A 27 R e v e n u e E x p e n d i t u r e s I n t e r f u n d I n c r e a s e ( D e c r e a s e ) i n F u n d B a l a n c e / C a s h F u n d a n d O t h e r a n d O t h e r T r a n s f e r s F u n d B a l a n c e / N e t P o s i t i o n B a l a n c e F u n d N o . S o u r c e s U s e s ( N e t ) N e t P o s i t i o n 1 2 / 3 1 / 1 9 1 2 / 3 1 / 1 9 32 T I F C e n t r a l V a l u C e n t e r F u n d 3 7 4 $ - $ - $ - $ - ( $ 2 , 6 3 8 ) $ - 33 T I F 4 7 t h a n d G r a n d F u n d 3 7 5 - 1 , 0 4 2 - ( 1 , 0 4 2 ) ( 1 , 0 4 2 ) - 34 T I F S c a t t e r e d S i t e 3 9 1 4 1 , 8 8 3 7 , 6 6 2 - 3 4 , 2 2 1 ( 1 4 0 , 24 2 ) 2 0 0 35 Ca p i t a l P r o j e c t : 36 M S A S t a t e A i d S t r e e t 2 1 2 / 4 0 2 5 3 9 , 8 2 0 5 2 0 , 5 7 5 - 1 9 , 2 45 6 0 4 , 4 8 7 1 6 , 4 0 5 37 E D A R e d e v e l o p m e n t P r o j e c t F u n d 4 0 8 4 4 5 , 1 9 8 5 7 , 4 2 5 1 , 0 8 2 , 6 2 6 1 , 4 7 0 , 39 9 2 , 4 9 4 , 2 3 8 8 , 7 0 0 38 C a p i t a l I m p r o v e m e n t s G e n e r a l G o v e r n m e n t B u i l d i n g s 4 1 1 6 6 7 , 4 3 7 8 1 ,6 1 8 2 3 , 0 0 0 6 0 8 , 8 1 9 4 , 8 8 7 , 9 6 0 4 , 8 9 3 , 5 3 0 39 C a p i t a l E q u i p m e n t R e p l a c e m e n t G e n e r a l G o v e r n m e n t 4 3 1 1 5 6 , 4 6 3 9 9 5 ,9 3 3 2 4 , 3 8 8 ( 8 1 5 , 0 8 2 ) 3 , 1 5 3 , 4 4 0 2 , 2 2 1 , 4 9 3 40 C a p i t a l I m p r o v e m e n t s P I R F u n d 4 1 5 5 2 6 , 9 2 4 1 9 2 , 8 8 7 ( 1 0 0 , 7 2 5 ) 2 3 3 , 3 1 2 8 6 9 , 8 9 2 7 4 5 , 2 5 5 41 C a p i t a l I m p r o v e m e n t D e v e l o p m e n t 4 2 0 1 7 7 , 0 6 6 - ( 7 3 4 , 72 6 ) ( 5 5 7 , 6 6 0 ) 8 6 6 , 3 0 9 5 3 9 , 8 5 8 42 C a p i t a l I m p r o v e m e n t P a r k s 4 1 2 5 9 , 0 0 3 6 , 3 1 4 - 5 2 , 6 8 9 3 80 , 2 6 3 3 8 5 , 5 8 6 43 I n f r a s t r u c t u r e R e p l a c e m e n t 4 3 0 8 7 , 5 0 3 5 , 4 0 6 5 0 , 0 0 0 1 3 2 , 0 9 7 1 , 5 5 1 , 2 7 9 1 , 5 4 8 , 3 7 9 44 En t e r p r i s e : 45 W a t e r 6 0 1 3 , 4 4 8 , 5 1 1 2 , 6 7 2 , 4 8 6 ( 9 6 , 5 0 0 ) 6 7 9 , 5 2 5 7 , 4 3 2 , 4 5 7 1 , 3 1 9 , 1 2 6 46 S e w e r 6 0 2 2 , 2 5 9 , 4 4 9 1 , 9 8 7 , 8 9 1 ( 9 6 , 5 0 0 ) 1 7 5 , 0 5 8 4 , 5 0 2 , 3 8 6 1 , 2 3 1 , 2 2 6 47 R e f u s e 6 0 3 2 , 2 0 5 , 3 9 9 1 , 8 8 2 , 0 8 9 ( 8 3 , 8 0 0 ) 2 3 9 , 5 1 0 2 , 1 3 0 , 0 2 5 1 , 6 3 9 , 5 1 8 48 S t o r m S e w e r 6 0 4 8 4 2 , 6 2 1 8 1 0 , 6 3 3 - 3 1 , 9 8 8 2 , 2 9 4 , 1 3 3 5 0 7 ,301 49 L i q u o r 6 0 9 8 , 9 4 9 , 7 0 8 8 , 4 7 0 , 3 3 8 ( 1 4 5 , 4 0 0 ) 3 3 3 , 9 7 0 5 , 2 1 8 , 8 3 9 1 , 7 7 6 , 2 0 4 50 In t e r n a l S e r v i c e : 51 M u n i c i p a l S e r v i c e C e n t e r 7 0 1 9 0 1 , 1 5 8 8 5 7 , 5 8 4 - 4 3 , 5 7 4 1 , 9 8 6 , 8 2 8 9 9 7 , 8 4 0 52 I n f o r m a t i o n S y s t e m s 7 2 0 3 9 9 , 9 0 0 3 9 7 , 2 9 5 ( 2 4 , 3 8 8 ) ( 2 1 , 7 8 3 ) 6 3 1 , 9 3 2 6 1 5,271 53 R i s k M a n a g e m e n t 8 8 4 6 1 9 , 7 2 4 5 8 1 , 2 9 6 - 3 8 , 4 2 8 1 , 3 1 2 , 6 5 1 1 , 2 4 8 , 9 3 4 54 E m p l o y e e B e n e f i t s F u n d 8 9 0 2 , 1 0 8 , 9 4 9 2 , 0 8 3 , 9 6 4 - 2 4 , 9 85 ( 1 1 , 6 6 6 , 1 7 8 ) 1 , 1 2 3 , 7 0 8 55 T o t a l $4 1 , 5 2 3 , 1 1 3 $ 3 9 , 5 5 0 , 8 8 5 $ 0 $ 1 , 9 7 2 , 2 2 8 $ 4 3 , 9 4 6 , 5 8 1 $ 3 6 , 5 1 9 , 5 4 3