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HomeMy WebLinkAbout2019 CAFR CITY OF COLUMBIA HEIGHTS STATE OF MINNESOTA PREPARED BY: FINANCE DEPARTMENT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019                                                 ‐ This page intentionally left blank ‐  CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. I. INTRODUCTORY SECTION Principal City Officials 3 Organizational Chart 4 Letter of Transmittal 5 Certificate of Achievement for Excellence in Financial Reporting9 II. FINANCIAL SECTION Independent Auditor's Report 13 Management's Discussion and Analysis 17 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net PositionStatement 134 Statement of ActivitiesStatement 236 Fund Financial Statements: Balance Sheet - Governmental FundsStatement 338 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental FundsStatement 440 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 543 Statement of Net Position - Proprietary FundsStatement 644 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary FundsStatement 746 Statement of Cash Flows - Proprietary FundsStatement 849 Notes to Financial Statements 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Required Supplementary Information: Budgetary Comparison Schedule - General FundStatement 996 Schedule of Changes in the Total OPEB Liability and Related RatiosStatement 1098 Schedule of Employer's Proportionate Share of Plan Net Pension Liability - General Statement 1199 Employees Retirement Fund Schedule of Pension Contributions - General Employees Retirement FundStatement 12100 Schedule of Employer's Proportionate Share of Plan Net Pension Liability - Public Employees Police and Fire FundStatement 13101 Schedule of Pension Contributions - Public Employees Police and Fire FundStatement 14102 Notes to RSI 103 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 15113 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 16114 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 17118 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 18120 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance: and Actual - Cable Television Fund Statement 19122 Actual - Police Forfeiture Fund Statement 20123 Budget and Actual - Library Fund Statement 21124 Budget and Actual - After-School Programs Fund Statement 22125 Actual - Contributed Projects-Recreation Fund Statement 23126 Actual - Contributed Projects - Other Fund Statement 24127 Budget and Actual - Special Projects Fund Statement 25128 Budget and Actual - Planning and Inspections Fund Statement 26129 Actual - Anoka County Comm. Dev. Programs Fund Statement 27130 Budget and Actual - Twenty-first Century Arts Grant Fund Statement 28131 Budget and Actual - Downtown Parking Fund Statement 29132 Budget and Actual - EDA Administration Fund (Component Unit)Statement 30133 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 31136 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 32138 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 33142 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 34144 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Enterprise Funds: Water Utility Fund: Subcombining Schedule of Net Position Statement 35148 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 36149 Subcombining Schedule of Cash FlowsStatement 37150 Sewer Utility Fund: Subcombining Schedule of Net Position Statement 38151 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 39152 Subcombining Schedule of Cash FlowsStatement 40153 Refuse Utility Fund: Subcombining Schedule of Net Position Statement 41154 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 42155 Subcombining Schedule of Cash FlowsStatement 43156 Storm Sewer Utility Fund: Subcombining Schedule of Net Position Statement 44157 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 45158 Subcombining Schedule of Cash FlowsStatement 46159 Liquor Fund: Subcombining Schedule of Net Position Statement 47161 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 48162 Subcombining Schedule of Cash FlowsStatement 49164 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. Internal Service Funds: Combining Statement of Net PositionStatement 50168 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Statement 51169 Combining Statement of Cash FlowsStatement 52170 Municipal Service Center: Subcombining Schedule of Net Position Statement 53171 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 54172 Subcombining Schedule of Cash FlowsStatement 55173 Information Systems Fund: Subcombining Schedule of Net Position Statement 56172 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 57175 Subcombining Schedule of Cash FlowsStatement 58176 Risk Management Fund: Subcombining Schedule of Net Position Statement 59177 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 60178 Subcombining Schedule of Cash FlowsStatement 61179 Employee Benefits Fund: Subcombining Schedule of Net Position Statement 62180 Subcombining Schedule of Revenues, Expenses and Changes in Fund Net PositionStatement 63181 Subcombining Schedule of Cash FlowsStatement 64182 CITY OF COLUMBIA HEIGHTS, MINNESOTA TABLE OF CONTENTS Page ReferenceNo. III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Positions by ComponentTable 1186 Changes in Net PositionTable 2188 Fund Balances - Governmental FundsTable 3192 Changes in Fund Balances - Governmental FundsTable 4194 Revenue Capacity: Tax Capacity Value and Estimated Market Value of All Taxable PropertyTable 5198 Direct and Overlapping Property Tax RatesTable 6199 Principal Property TaxpayersTable 7201 Property Tax Levies and CollectionsTable 8200 Debt Capacity: Ratios of Outstanding Debt by TypeTable 9205 Ratios of Outstanding Net General Bonded Debt by TypeTable 10206 Direct and Overlapping Governmental Activities DebtTable 11208 Legal Debt Margin InformationTable 12209 Pledged Revenue Coverage Non-Obligation DebtTable 13210 Demographic and Economic: Demographic and Economic StatisticsTable 14212 Principal Employers Table 15213 Operating Information: City Government Employees by Function/ProgramTable 16215 Operating Indicators by Function/ProgramTable 17216 Capital Asset Statistics by Function/ProgramTable 18218 IV. OTHER REQUIRED REPORTS SECTION Minnesota Legal Compliance Report 223 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 225                                                 ‐ This page intentionally left blank ‐  I. INTRODUCTORY SECTION 1                                                 ‐ This page intentionally left blank ‐  2 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL CITY OFFICIALS Name Official Title Mayor and Council: Donna Schmitt Mayor John Murzyn, Jr Councilmember Robert A. Williams Councilmember Connie Buesgens Councilmember Nick Novitsky Councilmember Administration: Kelli Bourgeois City Manager Patty Sweep Human Resources Manager Joseph Kloiber Finance Director Jim Hoeft City Attorney Kevin Hansen Public Works Director, City Engineer Lenny Austin Chief of Police Charlie Thompson Chief of Fire Renee Dougherty Library Director Aaron Chirpich Community Development Director Keith Windschitl Recreation Services Director Jason Schulz Liquor Operations Manager December 31, 2019 3 City of Columbia Heights Organizational Chart 2019 Mayor: Donna Schmitt Council members: John Murzyn Nick Novitsky Connie Buesgens Robert Williams City Manager: Kelli Bourgeois Commissions & Boards: Charter EDA HRA Traffic Telecommunications Planning & Zoning Park & Recreation LibraryADMINISTRATIONPublic ArtsHuman Resources Director:Patty Sweep City Clerk Administrative Assistant – Human Resources Communication Coordinator POLICE (Administered by Mayor) Police Chief: Lenny Austin Office Supervisor Police Captain (2) Sergeants (4) Patrol Officers (21) Community Service Officers (1 FT) (7 PT) Reserves Police IS Specialist Administrative Assistant II-A (3) FIRE/EMERGENCY MANAGEMENT Fire Chief: Charlie Thompson Assistant Fire Chief Fire Captains (3) Administrative Assistant II Clerk Typist II (PT) Journeymen (3) On-Call Firefighters (20) PUBLIC WORKS Public Works Director/City Engineer: Kevin Hansen Administrative Assistant II-A Assistant City Engineer Refuse Coordinator/PW Specialist 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 Mechanic 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 (5) Retail Clerk (30 PT) IS Director Assistant IS Director IS Technician COMMUNITY DEVELOPMENT Community Development Director: Aaron Chirpich City Planner Building Official Economic Development Planner Administrative Assistant II: Permits Administrative Assistant II: Community Development LIBRARY Library Director: Renee Dougherty Clerk-Typist II (2) Library Clerk (1) Library Supervisor (3 PT) Page (11 PT) Library Aide (PT) Adult Services Librarian Youth Services Librarian RECREATION Recreation Director: Keith Windschitl Clerk/Typist II Senior Citizen Coordinator Program Coordinator Program Coordinator (PT) Recreation Clerk (PT) Custodian II (9 PT) Custodian I (PT) 4 City of Columbia Heights | Finance Department 590 40th Avenue NE, Columbia Heights, MN 55421 ▪ Ph: 763-706-3600 ▪ www.columbiaheightsmn.gov June 15, 2020 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, 2019, 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, 2019. 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 20,503. 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 5 City of Columbia Heights Letter of Transmittal June 15, 2020 Page 2 the Comprehensive Annual Financial Report. The Columbia Heights Housing and Redevelopment Authority (HRA) and the Columbia Heights Economic Development Authority (EDA) are included in the reporting entity as blended component units of the City of Columbia Heights due to the fact that the governing boards are substantively the same and the City is in a relationship of financial benefit/burden with the authorities. The City provides a full range of services to its citizens. These services include, but are not limited to, police and fire protection; water and sanitation services; the construction and maintenance of highways, streets, and infrastructure; library; recreational facilities; and general administrative services. LOCAL ECONOMY The City is located within the varied and stable economic base of the Minneapolis-Saint Paul greater metropolitan area, which is a major center for both the state and the upper-midwest. As such, there has been a relatively stable level of employment for City residents up through and including 2019. The largest employers located within the boundaries of the City in 2019 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, local government aid (LGA) from the State of Minnesota has been a key component of the City’s annual operating and debt service budgets. The amount provided by the state however, has been both unpredictable, and for many years now, significantly reduced from historical levels. To provide for more stable operations, the City has gradually reduced the use of LGA in its annual operating and debt service budgets, by using moderate incremental increases in property taxes over the last decade. It now uses approximately 50% of the LGA received in these annual budgets, compared to 100% used ten years ago. 6 City of Columbia Heights Letter of Transmittal June 15, 2020 Page 3 Approximately $1.8 million in LGA is currently received annually. The 50% portion of this not used in the annual operating and debt service budgets is essentially treated as a one-time revenue source. It is used for capital projects and equipment that would otherwise be purchased with property taxes. 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, 2019, 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 reported in the City’s 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 The Economic Development Authority (EDA) conducts a program to revitalize the City’s commercial corridors. The main component of this program is the acquisition and redevelopment of nonconforming and/or blighted properties within the City’s commercial corridors. A second component of this program is the award of small matching grants to local businesses for façade improvements to retail and commercial building exteriors. The third component of this program is a partnership with the police department and local businesses to add video surveillance in these commercial corridors, to aid crime reduction. In 2019, the EDA acquired an obsolete, long-vacant six-story office building located on the corner of its main downtown intersection on Central Avenue NE, under a plan to demolish and redevelop both this property and the adjacent city-owned parking ramp. The EDA has selected Alatus LLC as the preferred redevelopment partner for this project. The redevelopment plans for the property have been reviewed by the City and approved. The proposed project is a vertical mixed-use development including the following base elements: • 265 High Amenity Market Rate Apartments • Underground parking • 20,000 square foot City Hall/Office on the ground floor • 3,000+ square feet of retail/restaurant space on the ground floor • Pocket park and outdoor dining space The completion of this project will serve to accomplish many of the long-range economic development and planning goals established in the City’s Comprehensive Plan. The Comprehensive Plan guidelines for this location recommend Transit Oriented Development. 7 City of Columbia Heights Letter of Transmittal June 15, 2020 Page 4 Transit Oriented Development seeks to develop properties to have a mix of residential, retail, and office space. Transit Oriented Development also seeks to include pedestrian friendly access and design. The project is also expected to serve as a catalyst for additional spin-off development in the immediate area. 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, 2018. The Certificate of Achievement is a prestigious national award that recognizes conformity with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA program for review. The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. In closing, without the leadership and support of the City Manager and City Council, preparation of this report would not have been possible. Sincerely, Joseph P. Kloiber Jaclyn Zillmer Finance Director Assistant Finance Director 8 9                                                 ‐ This page intentionally left blank ‐  10 II. FINANCIAL SECTION 11                                                 ‐ This page intentionally left blank ‐  12 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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, 2019, 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. 13 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, 2019, 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 2018 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 4, 2019. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2018 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, and the schedules of OPEB and pension information, 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. 14 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 15, 2020, 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 the effectiveness of the City of Columbia Heights, Minnesota’s 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 15, 2020 15                                                 ‐ This page intentionally left blank ‐  16 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, 2019. 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, 2019, by $73,518,166 (net position). Of this amount, $29,054,040 or 40% is unrestricted net position which may be used to meet the City’s ongoing obligations to citizens and creditors. During 2019, the City’s total net position of the government-wide financial statements was positively impacted in the current year by $3,458,495. This resulted from a $2,036,234 increase within the City’s governmental activities and a $1,422,261 increase within the City’s business-type activities. As of December 31, 2019, the combined fund balances of the City’s governmental funds were $30,103,508. This is an increase of $426,973 or 1% from the prior year. Also, approximately 25% 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, 2019, unassigned fund balance in the General fund was $7,685,738 or 98% of the total fund balance in the General fund. The City’s minimum fund balance policy for the General fund, detailed in the notes to the financial statements, was met at December 31, 2019. Total bonded debt decreased in 2019 by $3,759,746 to an end-of-year total of $22,988,300. This resulted from an early redemption of 2,030,000 using the proceeds of refunding bonds issued in December 2018, plus a separate early redemption of $150,000 using available fund balance, and $1,579,746 of scheduled installment repayments of bond principal. 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. 17 Management’s Discussion and Analysis The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether or not the financial position of the City is improving. 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. 18 Management’s Discussion and Analysis 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 2019 are the following:  General Fund  EDA (Component Unit) Redevelopment Project Fund  Capital Improvements-PIR Fund  Capital Improvement General Government Buildings Fund  HRA (Component Unit) Parkview Villa North and South Fund Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements are presented as Statements 3 through 5 of this report. The City adopts an annual appropriated budget for its general and certain special revenue funds listed in the notes to the financial statements. A budgetary comparison statement has been provided for each these funds to demonstrate compliance with this budget. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, refuse, storm sewer, and liquor operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its municipal service center (for vehicle and facilities maintenance), information systems, property and liability insurance, and certain employee benefits. As these internal transactions predominately benefit the governmental rather than the business-type activities, the internal service funds have been included within governmental 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. In 2019, the City had no fiduciary fund activity to report. 19 Management’s Discussion and Analysis 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 is presented as Statement 9 of this report. Required supplementary information on pensions and other post- employment benefits are presented as Statements 10 through 14 of this report. Certain additional combining and individual fund statements and schedules are presented as Statements 15 through 64 of this report. Government-wide Financial Analysis As noted above, net position may serve over time as a useful indicator of a government’s financial position. At December 31, 2019, the City’s assets and deferred outflows exceeded its liabilities and deferred inflows by $73,518,166. $40,901,556 or 56% of the City’s net position reflects its investment in capital assets (e.g. land, buildings, equipment and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. It should be noted that, although net position invested in capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves would not be used to liquidate these liabilities. The restricted 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, $29,054,039 or 40%, may be used to meet the City’s ongoing obligations to citizens and creditors. At December 31, 2019, 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. 20 Management’s Discussion and Analysis 2019 2018 2019 2018 2019 2018 Assets: Current and other assets $44,544,557$44,067,936$11,212,807$9,664,459$55,757,364$53,732,395 Capital assets 46,074,51847,567,08015,374,33716,036,46561,448,85563,603,545 Total assets 90,619,075 91,635,016 26,587,144 25,700,924 117,206,219 117,335,940 Deferred outflows of resources3,696,813 5,920,360 22,318 - 3,719,131 5,920,360 Liabilities: Current liabilities 3,131,0854,872,2461,414,7321,476,5864,545,8176,348,832 Noncurrent liabilities 33,724,15734,962,3283,430,6823,886,42937,154,83938,848,757 Total liabilities 36,855,24239,834,5744,845,4145,363,01541,700,65645,197,589 Deferred inflows of resources 5,992,580 8,288,970 13,998 10,120 6,006,578 8,299,090 Net position: Net invested in capital assets29,402,90128,080,46211,498,65511,675,03640,901,55639,755,498 Restricted 2,745,2595,032,456517,261559,3903,262,5205,591,846 Unrestricted 19,319,90616,318,9149,734,1348,093,36329,054,04024,412,277 Total net position$51,468,066$49,431,832$21,750,050$20,327,789$73,218,116$69,759,621 TotalsGovernmental Activities Business-Type Activities Changes in net position - governmental activities. During the current year, governmental activities increased the City’s net position by $2,036,234. This increase of 4% differed from the prior year decrease of less than 1% as explained below. Governmental activities revenue increased $471,329 or 2.5% over the prior year. Key elements of this change include:  Planned increases in property taxes of $603,000. This consisted of a 3.6% inflationary increase, a 1.2% increase committed for commercial district revitalization, and a 0.5% increase to reduce dependency on state aid (LGA.)  Tax increment collections increased by $245,406; primarily from the value of new construction within an existing tax increment district.  Investment income increased by $474,995; primarily from more favorable interest rates.  Charges for services increased $383,105. This reflects approximately $130,000 in rate increases for residential rental licenses; $107,000 from increased property code enforcement; and $162,000 of one-time fees for the issuance of conduit debt.  Offsetting the above increases, delayed and slower street reconstruction progress in 2019, compared to 2018, reduced state grants and special assessments for these purposes by approximately $760,000 and $550,000 respectively. 21 Management’s Discussion and Analysis Governmental activities expenses decreased $1,831,142 or 9% from the prior year. Key elements of this change include:  Public works expenses decreased $1,436,306; primarily from the decrease in construction activity explained above.  Community Development expenses decreased $395,805. This is approximately the amount by which the carrying value of land held for resale was reduced in 2018 to reflect a market decline of its estimated net realizable below its original acquisition cost. Whereas in 2019, there was no reduction in the estimated net realizable value of this land inventory. Changes in net position - Business-type activities. In 2019, business-type activities increased the City’s total net position by $1,422,261. This 7% increase differed from the prior year increase of 5% as explained below:  Business-type activities revenue increased by $1,144,609 or 7% over the prior year. This included a $585,019 increase in charges for services from both increases in utility rates and increased municipal liquor sales. Additionally, a one-time capital grants of $510,000 for sewer and storm water improvements were earned in 2019.  Business-type activities expense increased by $608,340 or 4% over the prior year. This reflects increases in liquor operating expense and utility system repairs, somewhat offset by decreases in operating volume for water, sewer, and refuse. 22 Management’s Discussion and Analysis 2019 2018 2019 2018 2019 2018 Revenues: Program revenues: Charges for services $2,321,232$1,848,127$16,970,625$16,385,606$19,291,857$18,233,733 Operating grants and contributions 885,209 1,458,725 106,220 118,373 991,429 1,577,098 Capital grants and contributions 321,087 1,059,322 510,541 - 831,628 1,059,322 General revenues: Property taxes 12,325,204 11,673,168 - - 12,325,204 11,673,168 Tax increment collections 977,598 732,192 - - 977,598 732,192 Grants and contributions not restricted to specific programs 1,684,119 1,676,553 - - 1,684,119 1,676,553 Unrestricted investment earnings829,368 354,373 118,302 57,100 947,670 411,473 Gain on sale of capital assets used in governmental activities 25,500 5,528 - - 25,500 5,528 Total revenues 19,369,317 18,807,988 17,705,688 16,561,079 37,075,005 35,369,067 Expenses: General government 2,237,4672,252,456 - - 2,237,4672,252,456 Public safety 6,875,1016,584,189 - - 6,875,1016,584,189 Public works 3,404,9844,841,290 - - 3,404,9844,841,290 Culture and recreation 3,699,6353,821,503 - - 3,699,6353,821,503 Community development 1,002,2981,398,103 - - 1,002,2981,398,103 Interest on long-term debt 535,798688,884 - - 535,798688,884 Water - - 2,678,9052,748,8032,678,905 2,748,803 Sewer - - 1,994,8541,820,1511,994,854 1,820,151 Refuse - - 1,883,8491,944,3251,883,849 1,944,325 Storm sewer - - 812,304511,836 812,304 511,836 Liquor - - 8,491,3158,227,7728,491,315 8,227,772 Total expenses 17,755,283 19,586,425 15,861,227 15,252,887 33,616,510 34,839,312 Increase (decrease) in net position before transfers and spec 1,614,034 (778,437) 1,844,461 1,308,192 3,458,495 529,755 Transfers 422,200 422,474 (422,200) (422,474) - - Increase in net position 2,036,234 (355,963) 1,422,261 885,718 3,458,495 529,755 Net position - January 1 49,431,832 49,787,795 20,327,789 19,442,071 69,759,621 69,229,866 Net position - December 31 $51,468,066$49,431,832$21,750,050$20,327,789$73,218,116$69,759,621 Business-Type Activities Totals CITY OF COLUMBIA HEIGHTS' CHANGES IN NET POSITION Governmental Activities 23 Management’s Discussion and Analysis 24 Management’s Discussion and Analysis 25 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, 2019, the City’s governmental funds reported combined fund balances of $30,103,508. 85% of this amount or $25,613,361 was not subject to external legal restrictions. This unrestricted portion of the combined fund balances includes all committed, assigned and unassigned fund balances. The remaining 15% of the combined fund balances is nonspendable or restricted; to indicate that it is not available for new spending because it has already been obligated for prepaid items ($140,132), debt service ($1,434,818), tax increment purposes ($2,121,769), and various other purpose restrictions ($793,428) detailed in the notes to the financial statements. The General Fund is the chief operating fund of the City. During the current year, fund balance in the General Fund increased by $1,036,082. This increase differs from the prior years $860,000 decrease as follow:  A 2018 activity included a one-time transfer of $1,400,000 from the General Fund to the Capital Improvements General Government Buildings Fund under a plan to accumulate funds for future building improvement and replacement.  Revenues increased by $919,751 or 8% over the prior year. This includes increases of approximately; $555,000 in property taxes consistent with the City’s five-year financial plan, approximately $240,000 more investment income from more favorable interest rates, and $100,000 from a rate increase in rental license fees.  Expenditures increased by $163,000 or 1% over the prior year, primarily due to planned inflationary increases in both personnel and non-personnel costs of existing departmental operations, offset by several retirements and vacancies. The changes in fund balance of the other major governmental funds in 2019, and significant elements of those changes, were as follows:  The Economic Development Authority (Component Unit) Redevelopment Project Fund increased by $1,470,399. This includes a one-time transfer of $1,000,000 from the non- major governmental funds and a special district tax levy of $241,014, both for revitalization of the City’s commercial zones. 26 Management’s Discussion and Analysis  The Capital Improvements PIR Fund increased by $233,312. This increase is the amount by which special assessments collected, exceeded in the current year street project expenditures. PIR is the acronym for Public Improvement Revolving Fund.  The Capital Improvements General Government Buildings Fund increased by $608,819 primarily by the allocation of state aid (LGA) to this fund, under a plan to accumulate funds for future building improvement and replacement. The combined fund balances of the non-major governmental funds decreased by $2,921,639 or 17% over the prior year. The most significant elements of this decrease were:  $2,030,000 of the G.O. Public Facilities Bonds Series 2009A Fund were redeemed early in 2019 using the proceeds from refunding bonds issued in December 2018.  $815,082 of fund balance was used to purchase vehicles, an encrypted radio system for public safety use, and a new self-contained breathing apparatus (SCBA) for each firefighter. 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, 2019, net position of the major proprietary funds included the following amounts of unrestricted net position:  Water Fund $1,865,267  Sewer Fund $1,794,069  Refuse Fund $2,098,150  Storm Sewer Fund $547,497  Liquor Fund $3,281,494 The 2019 changes in net position of the major proprietary funds were as follows:  Water Fund $679,525  Sewer Fund $175,058  Refuse Fund $239,510  Storm Sewer Fund $31,988  Liquor Fund $333,970 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 2019 General Fund budget consisted of several small budget amendments to increase intergovernmental revenue, charges for services, and miscellaneous other revenues, by a total of $52,332. All of these changes were paired with related 27 Management’s Discussion and Analysis 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 2019 were more than budgeted by $401,612 or 3%. The largest element of this variance was the $240,194 by which actual investment income exceeded the budget estimate, due to more favorable interest rates. Approximately $105,000 of the general fund revenue budget variance is the amount by which excess tax increment refunded to the City from tax increment financing districts exceeded reductions in property tax from disputed property valuations. These items are reported within the line item for tax revenues when they occur, but are not used in the revenue forecast to develop the budget. Actual general fund expenditures in 2019 were less than budgeted by $731,465 or 6%. Major elements of this variance include:  Retirements of sixteen long term, several highly compensated employees caused a variance of personnel expense over $730,000. Several positions had temporary vacancies and were hired at rates lower than the incumbents.  The remaining variances were distributed throughout the departments of the general fund and were primarily the result of using conservative budget estimates. Capital Asset and Debt Administration Capital assets. The City’s capital assets for its governmental and business-type activities as of December 31, 2019, amount to $61,448,855 net of accumulated depreciation. This investment in capital assets includes land, buildings, equipment, infrastructure, and construction in progress. 28 Management’s Discussion and Analysis City of Columbia Heights’ Capital Assets Beginning Ending BalanceAdditionsDeletionsBalance Governmental activities: Capital assets - not depreciated: Land $6,440,531$ - $ - $6,440,531 Construction in progress 1,270,724 317,989 (1,223,330) 365,383 Total capital assets not being depreciated 7,711,255 317,989 (1,223,330) 6,805,914 Capital assets - being depreciated: Buildings 32,528,731 - (222,644) 32,306,087 Equipment 10,103,175 910,732 (623,823) 10,390,084 Infrastructure 34,799,459 1,152,415 - 35,951,874 Total capital assets being depreciated 77,431,365 2,063,147 (846,467) 78,648,045 Less accumulated depreciation for: Buildings 10,824,688 926,643 (164,579) 11,586,752 Equipment 7,366,257 554,288 (622,381) 7,298,164 Infrastructure 19,384,595 1,109,930 - 20,494,525 Total accumulated depreciation 37,575,540 2,590,861 (786,960) 39,379,441 Capital assets being depreciated - net 39,855,825 (527,714) (59,507) 39,268,604 Governmental activities capital assets - net 47,567,080 (209,725) (1,282,837) 46,074,518 Business-type activities: Capital assets - not depreciated: Land 2,349,213 - - 2,349,213 Construction in progress 84,689 60,888 (76,948) 68,629 Total capital assets not being depreciated 2,433,902 60,888 (76,948) 2,417,842 Capital assets - being depreciated: Buildings 5,679,894 - (6,000) 5,673,894 Equipment 2,515,432 227,213 (25,244) 2,717,401 Infrastructure 19,308,003 - - 19,308,003 Total capital assets being depreciated 27,503,329 227,213 (31,244) 27,699,298 Less accumulated depreciation for: Buildings 2,160,466 160,644 (6,000) 2,315,110 Equipment 1,829,604 253,101 (25,244) 2,057,461 Infrastructure 9,910,696 459,536 - 10,370,232 Total accumulated depreciation 13,900,766 873,281 (31,244) 14,742,803 Capital assets being depreciated - net 13,602,563 (646,068) - 12,956,495 Business-type activities capital assets - net 16,036,465 (585,180) (76,948) 15,374,337 Total capital assets - net 63,603,545 (794,905) (1,359,785) 61,448,855 29 Management’s Discussion and Analysis Significant capital asset activity during 2019 included the following: Year Project StartedCost to DateStatus Street Lighting Central 47-51st 20171,152,415 in-service Street Rehab Zone 4 201754,202 in-progress Street Overlay 201831,226 in-progress Water Main Construction 201934,365 in-progress Concrete Alley Construction 201934,546 in-progress City Hall Feasibility 201956,271 in-progress Boat Landing Reconstruction 20196,314 in-progress Silver Lake Lift Station Reconstruction201924,553 in-progress Pylon Sign - Liquor Store 3 20199,711 in-progress As of December 31, 2019 At December 31, 2019, the City had $422,430 of non-cancellable contractual commitments for construction in 2019, 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. Total bonded debt decreased in 2019 by $3,759,746 to an end-of-year total of $22,988,300. This resulted from an early redemption of $2,030,00 using the proceeds of refunding bonds issued in December 2018, plus a separate early redemption of $150,000 using available fund balance, and $1,579,746 of scheduled installment repayments of bond principal. 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, 2019, the City’s debt limit under this statute was $44,000,460 and $16,497,618 of the City’s outstanding debt was of the type to which this limit applies. At December 31, 2019, 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 governmental activities at December 31, 2019, are repaid only with tax increment and are unrated. In conjunction with a 2015 sale of real property, the Housing and Redevelopment Authority issued 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 is reported in the financial statements within the liability - Due to Other Governments. Other long-term obligations consist of compensated absences, post-employment health insurance, 30 Management’s Discussion and Analysis and net pension benefit. Additional information on the City’s long-term debt is included in Note 7 to the financial statements. City of Columbia Heights’ Long-Term Debt 2019 2018 2019 2018 2019 2018 General obligation bonds: Repaid only with general taxes$16,115,000$18,855,000$ - $ - $16,115,000$18,855,000 With other pledged revenues 550,000915,0003,825,0004,300,0004,375,0005,215,000 Revenue bonds 2,065,0002,190,000 - - 2,065,0002,190,000 Unamortized premium 382,618426,61750,68261,429433,300488,046 Due to other government 5,200,0005,200,000 - - 5,200,0005,200,000 Compensated absences 1,123,7081,353,178 - - 1,123,7081,353,178 Net pension liability 7,958,0968,059,561 - - 7,958,0968,059,561 Postemployment benefits other than pensions 1,420,6351,252,872 - - 1,420,6351,252,872 $34,815,057$38,252,228$3,875,682$4,361,429$38,690,739$42,613,657 Governmental Activities Business-Type Activities Totals Economic Factors and Next Year’s Budget In 2019, the average annual unemployment rate for Anoka County, which includes the City, was 3.1%. This is an increase from a rate of 2.8% from the prior year. This compares to the average annual 2019 state and national rates of 3.2% and 3.7% respectively. The 2019 increase in the Consumer Price Index in the Midwest region compares favorably to national trends. These factors were considered when preparing the City of Columbia Heights’ 2020 budget. Requests For Information. This financial report is designed to provide a general overview of the City of Columbia Heights’ finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Columbia Heights, Finance Department, 590 40th Avenue NE, Columbia Heights, Minnesota 55421-3878. 31                                                 ‐ This page intentionally left blank ‐  32 BASIC FINANCIAL STATEMENTS 33 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2019 Page 1 of 2 With Comparative Totals For December 31, 2018 GovernmentalBusiness-Type ActivitiesActivities20192018 Current assets: Cash and investments$30,046,168$6,473,375$36,519,543$38,061,106 Receivables - current: Accounts (net of allowance for uncollectibles)57,6762,054,8372,112,5131,971,950 Special assessments 554,329 - 554,329580,012 Taxes 425,667 - 425,667375,816 Interest63,1179,00072,117105,563 Due from other governmental units 942,13760,7831,002,9201,141,360 Internal balances (163,890)163,890 - - Prepayments 218,742100,538319,280314,663 Inventory - at cost 41,1492,350,3842,391,5332,228,379 Real estate held for resale 4,261,106 - 4,261,106535,976 Total current assets 36,446,20111,212,80747,659,00845,314,825 Noncurrent assets: Receivables - noncurrent: Special assessments 1,115,548 - 1,115,5481,424,424 Loans 6,982,808 - 6,982,8086,993,146 Capital assets (net of accumulated depreciation): Land 6,440,5312,349,2138,789,7448,789,744 Buildings 20,719,3353,358,78424,078,11925,223,471 Equipment 3,091,920659,9403,751,8603,422,746 Infrastructure 15,457,3498,937,77124,395,12024,812,171 Construction in process 365,383 68,629434,0121,355,413 Total noncurrent assets 54,172,87415,374,33769,547,21172,021,115 Total assets 90,619,07526,587,144117,206,219117,335,940 Deferred outflows of resources: Related to pensions 3,559,714 - 3,559,7145,920,360 Related to other postemployment benefits 137,099 22,318159,417 - Total deferred outflows of resources 3,696,813 22,3183,719,1315,920,360 Totals Primary Government Assets: The accompanying notes are an integral part of these financial statements. 34 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2019 Page 2 of 2 With Comparative Totals For December 31, 2018 GovernmentalBusiness-Type ActivitiesActivities20192018 Current liabilities: Accounts payable$574,524$587,713$1,162,237$1,004,603 Accrued salaries and withholdings payable438,61486,926525,540520,231 Contracts payable 152,244 29,183181,427110,690 Due to other governmental units 203,781230,060433,841358,263 Unearned revenue 51,519 - 51,519215,818 Accrued interest payable 228,369 35,650264,019290,412 Deposits 391,134 200391,334 83,915 Compensated absences payable 110,900 - 110,900209,900 Bonds payable 980,000445,0001,425,0003,555,000 Total current liabilities 3,131,0851,414,7324,545,8176,348,832 Noncurrent liabilities: Compensated absences payable 1,012,808 - 1,012,8081,143,278 Other postemployment benefits payable 1,420,635 - 1,420,6351,252,872 Bonds payable 18,132,6183,430,68221,563,30023,193,046 Due to other governmental units 5,200,000 - 5,200,0005,200,000 Net pension liability 7,958,096 - 7,958,0968,059,561 Total noncurrent liabilities 33,724,1573,430,68237,154,83938,848,757 Total liabilities 36,855,2424,845,41441,700,65645,197,589 Deferred inflows of resources: Related to pensions 5,904,848 - 5,904,8488,225,061 Related to other postemployment benefits 87,732 13,998101,730 74,029 Total deferred inflows of resources 5,992,580 13,9986,006,5788,299,090 Net investments in capital assets 29,402,90111,498,65540,901,55639,755,498 Restricted for: Debt service 1,173,486517,2611,690,7473,743,823 Tax increment purposes 1,382,832 - 1,382,8321,079,764 Other purposes 188,941 - 188,941768,259 Unrestricted 19,319,9069,734,13429,054,04024,412,277 Total net position $51,468,066$21,750,050$73,218,116$69,759,621 Totals Liabilities: Net position: Primary Government The accompanying notes are an integral part of these financial statements. 35 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 Program Revenues Charges For ExpensesServices Functions/Programs Primary government: Governmental activities: General government$2,237,467$239,208 Public safety6,875,101957,982 Public works3,404,984164,769 Culture and recreation3,699,635254,286 Community development1,002,298704,987 Interest on long-term debt535,798 - Total governmental activities17,755,2832,321,232 Business-type activities: Water 2,678,9053,431,811 Sewer 1,994,8542,074,560 Refuse 1,883,8492,068,509 Storm sewer 812,304480,867 Liquor 8,491,3158,914,878 15,861,22716,970,625 Total primary government$33,616,510$19,291,857 The accompanying notes are an integral part of these financial statements. 36 Statement 2 OperatingCapital Grants andGrants andBusiness-Type ContributionsContributionsGovernmentalActivities20192018 $11,133$ - ($1,987,126)$ - ($1,987,126)($1,950,038) 515,846 - (5,401,273) - (5,401,273)(5,300,964) 323,994321,087(2,595,134) - (2,595,134)(2,746,720) 34,236 - (3,411,113) - (3,411,113)(3,511,607) - - (297,311) - (297,311)(1,022,038) - - (535,798) - (535,798)(688,884) 885,209321,087(14,227,755)0(14,227,755)(15,220,251) - - - 752,906$752,906576,250 - 160,288 - 239,994239,994206,544 102,190 - - 286,850286,850155,063 - 350,253 - 18,81618,816(53,263) 4,030 - - 427,593427,593366,498 106,220510,54101,726,1591,726,1591,251,092 $991,429$831,628(14,227,755)1,726,159(12,501,596)(13,969,159) General revenues: Property taxes12,325,204 - 12,325,20411,673,168 Tax increment collections977,598 - 977,598732,192 Grants and contributions not restricted to specific programs1,684,119 - 1,684,1191,676,553 Unrestricted investment earnings829,368118,302947,670411,473 Gain on sale of capital assets used in governmental activities25,500 - 25,5005,528 Transfers422,200(422,200) - - Total general revenues and transfers 16,263,989(303,898)15,960,09114,498,914 Change in net position2,036,2341,422,2613,458,495529,755 Net position - January 149,431,83220,327,78969,759,62169,229,866 Net position - December 31$51,468,066$21,750,050$73,218,116$69,759,621 Totals Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government The accompanying notes are an integral part of these financial statements. 37 CITY OF COLUMBIA HEIGHTS, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2019 General Fund EDA (Component Unit) Redevelopment Project Fund 408 Capital Improvements PIR Fund 415 Assets Cash and investments$8,168,359$8,700$745,255 Receivables: Accounts 4,365 - - Special assessments - - 1,307,506 Taxes 386,287 - - Loans - - - Interest 25,4177001,000 Due from other governmental units113,279 - 155,529 Interfund receivable - - - Prepayments 137,545 - - Real estate held for resale - 3,784,798 - Total assets $8,835,252 $3,794,198 $2,209,290 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $192,846 $33,472 $794 Accrued salaries and withholdings payable 348,470 - 2,417 Contracts payable - retained percentage 4,160 - 36,109 Due to other governmental units 130,490 - - Interfund payable - 1,255,488 - Unearned revenue - - - Deposits - 11,000 - Total liabilities 675,966 1,299,960 39,320 Deferred inflows of resources: Unavailable revenue 283,532 - 1,300,078 Total deferred inflows of resources 283,532 0 1,300,078 Fund balance: Nonspendable 137,545 - - Restricted - - - Committed - 2,494,238 869,892 Assigned 52,471 - - Unassigned 7,685,738 - - Total fund balances 7,875,754 2,494,238 869,892 Total liabilities, deferred inflows of resources, and fund balances $8,835,252 $3,794,198 $2,209,290 The accompanying notes are an integral part of these financial statements. 38 Statement 3 Capital Improvements General Gov't Buildings Fund 411 HRA (Component Unit) Parkview Villa North & South Fund 203 & 213 Other Governmental FundsInterfund Eliminations Total Governmental Funds $4,893,530$ - $12,244,571$ - $26,060,415 - - 53,311 - 57,676 - - 362,371 - 1,669,877 - - 39,380 - 425,667 - 6,585,000 397,808 - 6,982,808 8,700 - 21,800 - 57,617 - - 672,943 - 941,751 - - 1,407,905 (1,407,905) - - - 2,587 - 140,132 - - 476,308 - 4,261,106 $4,902,230 $6,585,000 $15,678,984 ($1,407,905)$40,597,049 $13,426 $ - $278,206 $ - $518,744 844 - 54,831 - 406,562 - - 3,500 - 43,769 - - 73,291 - 203,781 - - 152,417 (1,407,905) - - - 42,357 - 42,357 - - 380,134 - 391,134 14,270 0 984,736 (1,407,905)1,606,347 - 6,585,000 718,584 - 8,887,194 0 6,585,000 718,584 0 8,887,194 - - 2,587 - 140,132 - - 4,350,015 - 4,350,015 4,887,960 - 9,766,984 - 18,019,074 - - - - 52,471 - - (143,922) - 7,541,816 4,887,960 0 13,975,664 0 30,103,508 $4,902,230 $6,585,000 $15,678,984 ($1,407,905)$40,597,049 Fund balance reported above $30,103,508 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.45,033,801 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds.3,687,194 Internal service funds are used by management to charge the costs of municipal service center, information systems, risk management and employee benefits to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position.(7,906,975) Long-term liabilities, including bonds payable and pollution remediation obligation, are not due and payable in the current period and, therefore, are not reported in the funds.(19,449,462) Net position of governmental activities $51,468,066 The accompanying notes are an integral part of these financial statements. 39 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2019 General Fund EDA (Component Unit) Redevelopment Project Fund 408 Capital Improvements PIR Fund 415 Revenues: Taxes$10,156,071$241,014$ - Tax increment collections - - - Special assessments - - 334,130 Licenses and permits 371,369 - - Intergovernmental 970,495 - - Charges for services 614,312 - 178,396 Fines and forfeitures 116,759 - - Investment income: Interest and dividends 212,174 6,000 8,200 Change in fair value 118,020 3,400 4,500 Other revenues 19,344 194,784 1,698 Total revenues 12,578,544 445,198 526,924 Expenditures: Current: General government 2,044,059 - - Public safety 6,368,806 - - Public works 1,541,165 - 192,887 Culture and recreation 1,794,915 - - Community development - 57,425 - Capital outlay: General government - - - Public safety 11,582 - - Public works 60,817 - - Culture and recreation - - - Debt service: Principal retirement - - - Interest and fiscal charges - - - Developer incentives - - - Total expenditures 11,821,344 57,425 192,887 Revenues over (under) expenditures 757,200 387,773 334,037 Other financing sources (uses): Transfers in 472,400 1,082,626 35,518 Transfers out (193,518) - (136,243) Payment to refunded bond escrow - - - Sale of capital assets - - - Total other financing sources (uses)278,882 1,082,626 (100,725) Net change in fund balance 1,036,082 1,470,399 233,312 Fund balance - January 1 6,839,672 1,023,839 636,580 Fund balance - December 31 $7,875,754 $2,494,238 $869,892 The accompanying notes are an integral part of these financial statements. 40 Statement 4 Capital Improvements General Gov't Buildings Fund 411 HRA (Component Unit) Parkview Villa North & South Fund 203 & 213 Other Governmental FundsInterfund Eliminations Total Governmental Funds $ - $ - $1,874,343 $ - $12,271,428 - - 972,330 - 972,330 - - 105,479 - 439,609 - - 273,460 - 644,829 554,437 - 1,202,395 - 2,727,327 - - 577,390 - 1,370,098 - - 9,344 - 126,103 72,600 - 192,775 - 491,749 40,400 - 101,699 - 268,019 - - 229,926 - 445,752 667,437 0 5,539,141 0 19,757,244 25,406 - 98,425 - 2,167,890 - - 34,006 - 6,402,812 - - 514,218 - 2,248,270 - - 1,074,678 - 2,869,593 - - 614,246 - 671,671 56,212 - 24,388 - 80,600 - - 790,255 - 801,837 - - 184,919 - 245,736 - - 6,314 - 6,314 - - 1,200,000 - 1,200,000 - - 607,637 - 607,637 - - 474,949 - 474,949 81,618 0 5,624,035 0 17,777,309 585,819 0 (84,894)0 1,979,935 23,000 - 650,648 (1,817,604)446,588 - - (1,487,843)1,817,604 - - - (2,030,000) - (2,030,000) - - 30,450 - 30,450 23,000 0 (2,836,745)0 (1,552,962) 608,819 0 (2,921,639)0 426,973 4,279,141 - 16,897,303 - 29,676,535 $4,887,960 $0 $13,975,664 $0 $30,103,508 The accompanying notes are an integral part of these financial statements. 41                                                 ‐ This page intentionally left blank ‐  42 CITY OF COLUMBIA HEIGHTS, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2019 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)$426,973 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The difference is the amount by which depreciation exceeded outlays for capital assets.(1,438,217) 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.3,273,999 Interest on long-term debt is reported in the governmental funds in the year it is paid. Whereas, this amount is reported in the statement of activities in the year in which it accrues.27,840 Pollution remediation obligation expenses are reported in the governmental funds in the (108,475) year the expenses are paid. Whereas, this amount is reported in the statement of activities in the year in which it accrues. 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.(268,880) The net revenues (expenses) of certain activities of internal service funds are reported within the governmental activities in the statement of activities.122,994 Change in net position of governmental activities (Statement 2)$2,036,234 The accompanying notes are an integral part of these financial statements. 43 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2019 Assets: Water Utility FundSewer Utility Fund Current assets: Cash and cash equivalents $1,319,126 $1,231,226 Receivables: Accounts (net of allowance for uncollectibles) 794,489 558,746 Interest 1,3001,800 Due from other governmental units - - Prepayments - 100,538 Inventory - at cost 9,220 - Total current assets 2,124,135 1,892,310 Noncurrent assets: Capital assets: Land 45,223 36,586 Construction in progress 34,365 24,553 Buildings 1,305,172 403,659 Equipment 676,915 1,097,814 Infrastructure 9,963,688 6,677,171 Total capital assets 12,025,363 8,239,783 Less: accumulated depreciation (6,137,067)(5,280,647) Net capital assets 5,888,296 2,959,136 Total noncurrent assets 5,888,296 2,959,136 Total assets 8,012,431 4,851,446 Deferred outflows of resources: Related to pensions and OPEB - - Liabilities: Current liabilities: Accounts payable 23,616 37,657 Accrued salaries and withholdings payable 15,003 13,140 Contracts payable - retained percentage - 10,132 Due to other governmental units 127,479 - Accrued interest payable 3,676 2,531 Unearned revenue - - Deposits 200 - Compensated absences payable - current - - Bonds payable - current 80,000 53,400 Total current liabilities 249,974 116,860 Noncurrent liabilities: Compensated absences payable - noncurrent - - Other postemployment benefits payable - - Bonds payable - noncurrent 330,000 232,200 Net pension liability - - Total noncurrent liabilities 330,000 232,200 Total liabilities 579,974 349,060 Deferred inflows of resources: Related to pensions and OPEB - - Net position: Net investments in capital assets 5,478,296 2,648,983 Restricted for debt service 88,894 59,334 Unrestricted 1,865,267 1,794,069 Total net position $7,432,457 $4,502,386 Adjustments to reflect the consolidation of internal service fund activities related to enterprise funds Net position of business-type activities Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 44 Statement 6 Business-Type Activities - Enterprise Funds Refuse Utility FundStorm Sewer Utility FundLiquor FundTotal Enterprise FundsInternal Service Funds $1,639,518 $507,301 $1,776,204 $6,473,375 $3,985,753 575,074 126,419 109 2,054,837 - 2,700 900 2,300 9,000 5,500 23,905 33,745 3,133 60,783 386 - - - 100,538 78,610 - - 2,341,164 2,350,384 41,149 2,241,197 668,365 4,122,910 11,048,917 4,111,398 - 260,690 2,006,714 2,349,213 15,779 - - 9,711 68,629 - 56,000 - 3,909,062 5,673,893 1,978,957 112,893 398,758 431,020 2,717,400 576,350 - 2,667,144 - 19,308,003 - 168,893 3,326,592 6,356,507 30,117,138 2,571,086 (137,018)(1,348,687)(1,839,382)(14,742,801)(1,530,371) 31,875 1,977,905 4,517,125 15,374,337 1,040,715 31,875 1,977,905 4,517,125 15,374,337 1,040,715 2,273,072 2,646,270 8,640,035 26,423,254 5,152,113 - - - - 3,719,131 138,773 31,925 355,742 587,713 55,780 4,274 4,083 50,426 86,926 32,052 - 19,051 - 29,183 - - - 102,581 230,060 - - 2,678 26,765 35,650 - - - - - 9,162 - - - 200 - - - - - 110,900 - 56,600 255,000 445,000 - 143,047 114,337 790,514 1,414,732 207,894 - - - - 1,012,808 - - - - 1,420,635 - 237,800 2,630,682 3,430,682 - - - - - 7,958,096 0 237,800 2,630,682 3,430,682 10,391,539 143,047 352,137 3,421,196 4,845,414 10,599,433 - - - - 6,006,578 31,875 1,683,505 1,631,443 11,474,102 1,040,715 - 63,131 305,902 517,261 - 2,098,150 547,497 3,281,494 9,586,477 (8,775,482) $2,130,025 $2,294,133 $5,218,839 21,577,840 ($7,734,767) 172,210 $21,750,050 The accompanying notes are an integral part of these financial statements. 45 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2019 Water Utility FundSewer Utility FundRefuse Utility Fund Operating revenues: Charges for services$206,383$2,074,292$2,068,509 Charges for sales, net of discounts3,224,817 - - Total operating revenues 3,431,200 2,074,292 2,068,509 Operating expenses: Cost of sales, services and goods sold 1,584,203 1,121,217 1,659,598 Operating expense 779,850 693,285 219,991 Depreciation 296,023 166,925 2,500 Total operating expenses 2,660,076 1,981,427 1,882,089 Net income (loss) from operations 771,124 92,865 186,420 Nonoperating revenues (expenses): Investment income: Interest and dividends 10,800 15,801 22,300 Change in fair value 5,900 8,800 12,400 Intergovernmental - - 102,190 Miscellaneous revenues 611 268 - Interest and fiscal charges (12,410)(6,464) - Total nonoperating revenues (expenses)4,901 18,405 136,890 Net income (loss) before transfers and capital contributions 776,025 111,270 323,310 Transfers and capital contributions: Capital contribution - intergovernmental revenue - 160,288 - Transfers out (96,500)(96,500)(83,800) Total transfers and capital contributions (96,500)63,788 (83,800) Change in net position 679,525 175,058 239,510 Net position - January 1 6,752,932 4,327,328 1,890,515 Net position - December 31 $7,432,457 $4,502,386 $2,130,025 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. 46 Statement 7 Storm Sewer Utility FundLiquor FundTotal Enterprise FundsInternal Service Funds $480,515$ - $4,829,699$3,790,328 - 8,914,87812,139,695118,400 480,515 8,914,878 16,969,394 3,908,728 - 6,686,02111,051,0393,842,537 686,3911,585,5683,965,085 - 116,472139,489721,40977,602 802,863 8,411,078 15,737,533 3,920,139 (322,348)503,800 1,231,861 (11,411) 7,40119,80076,10244,800 4,10011,00042,20024,800 - 4,030106,22051,403 352 - 1,231 - (7,770)(59,260)(85,904) - 4,083 (24,430)139,849 121,003 (318,265)479,370 1,371,710 109,592 350,253 - 510,541 - - (145,400)(422,200)(24,388) 350,253 (145,400)88,341 (24,388) 31,988 333,970 1,460,051 85,204 2,262,1454,884,86920,117,789(7,819,971) $2,294,133 $5,218,839 $21,577,840 ($7,734,767) Change in Net PositionTransfers $1,460,051($422,200) (37,790)- $1,422,261($422,200) 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, 2019 Water Utility FundSewer Utility Fund Cash flows from operating activities: Cash received from customers$3,361,546 $2,026,949 Cash received from interfund goods and services provided - - Cash paid to suppliers for goods and services (2,002,128)(1,529,035) Cash payments to employees for services (441,469)(250,308) Net cash flows provided by (used in) operating activities 917,949 247,606 Cash flows from noncapital financing activities: Transfers out (96,500)(96,500) Intergovernmental - - Interfund payable (repaid to) advanced by other funds (66,000) - Increases in other postemployment benefits payable - - Net cash flows provided by (used in) noncapital financing activities (162,500)(96,500) Cash flows from capital and related financing activities: Acquisition of capital assets (46,313)(44,245) Intergovernmental revenue - 160,288 Principal payments - bonds (120,000)(53,400) Interest and fiscal charges (12,848)(6,938) Net cash flows provided by (used in) capital and related financing activities (179,161)55,705 Cash flows from investing activities: Investment income Interest and dividends 13,200 16,801 Change in fair value 5,900 8,800 Net cash flows provided by (used in) investing activities 19,100 25,601 Net increase (decrease) in cash and cash equivalents 595,388 232,412 Total cash and cash equivalents - January 1 723,738 998,814 Total cash and cash equivalents - December 31 $1,319,126 $1,231,226 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 48 Statement 8 Page 1 of 2 Refuse Utility Fund Storm Sewer Utility FundLiquor Fund Total Enterprise FundsInternal Service Funds $2,026,312$437,267 $8,917,084 $16,769,158 $ - - - - - 4,099,478 (1,770,442)(490,611)(7,334,657)(13,126,873)(2,845,396) (114,022)(145,237)(1,143,765)(2,094,801)(1,455,879) 141,848 (198,581)438,662 1,547,484 (201,797) (83,800) - (145,400)(422,200)(24,388) 102,190 - 4,030 106,220 51,403 - - - (66,000) - - - - - 36,047 18,390 0 (141,370)(381,980)63,062 - 40,987 (12,810)(62,381)(23,257) - 350,253 - 510,541 - - (73,600)(245,000)(492,000) - - (7,527)(67,891)(95,204) - 0 310,113 (325,701)(139,044)(23,257) 23,500 8,001 20,600 82,102 48,400 12,400 4,100 11,000 42,200 24,800 35,900 12,101 31,600 124,302 73,200 196,138 123,633 3,191 1,150,762 (88,792) 1,443,380 383,668 1,773,013 5,322,613 4,074,545 $1,639,518 $507,301 $1,776,204 $6,473,375 $3,985,753 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 49 CITY OF COLUMBIA HEIGHTS, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2019 Water Utility FundSewer Utility Fund Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss)$771,124 $92,865 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 296,023 166,925 Miscellaneous revenues (expenses)611 268 Changes in assets and liabilities: (Increase) decrease in accounts receivable (68,717)(40,508) (Increase) decrease in due from other governmental units - - (Increase) decrease in prepayments - (7,103) (Increase) decrease in inventory, at cost (937) - (Increase) decrease in deferred pension outflows - - Increase (decrease) in accounts payable (66,193)21,962 Increase (decrease) in accrued salaries and withholdings payable (1,610)3,065 Increase (decrease) in contracts payable - retained percentage - 10,132 Increase (decrease) in due to other governmental units (9,852) - Increase (decrease) in deposits payable (2,500) - Increase (decrease) in deferred revenue - - Increase (decrease) in compensated absences - - Increase (decrease) in net pension liability - - Increase (decrease) in deferred pension inflows - - Total adjustments 146,825 154,741 Net cash flows from operating activities $917,949 $247,606 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 50 Statement 8 Page 2 of 2 Refuse Utility Fund Storm Sewer Utility FundLiquor Fund Total Enterprise FundsInternal Service Funds $186,420 ($322,348)$503,800 $1,231,861 ($11,411) 2,500 116,472 139,489 721,409 77,602 - 352 - 1,231 - (24,725)(9,855)2,991 (140,814) - (17,472)(33,745)(785)(52,002)1,963 - - - (7,103)(6,282) - - (172,860)(173,797)11,393 - - - - 2,359,896 (5,037)30,681 (43,079)(61,666)12,764 162 811 3,868 6,296 3,160 - 19,051 - 29,183 - - - 5,238 (4,614) - - - - (2,500) - - - - - 266 - - - - (229,470) - - - - (101,465) - - - - (2,320,213) (44,572)123,767 (65,138)315,623 (190,386) $141,848 ($198,581)$438,662 $1,547,484 ($201,797) Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 51                                                 ‐ This page intentionally left blank ‐  52 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Columbia Heights, Minnesota (the City) was incorporated in 1898. A Council composed of an elected mayor and four council members governs the City. The Council exercises legislative authority and determines all matters of policy. The Manager, appointed by the Council, is responsible for the proper administration of all affairs relating to the City. The financial statements of the City have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant policies. A. FINANCIAL REPORTING ENTITY The component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City. The City has two component units - the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). The HRA and the EDA are considered component units because the governing boards are substantively the same as that of the City and because the City is in a relationship of financial benefit or burden with each of the entities. It is this criterion that results in the HRA and EDA being reported as a blended component unit. The financial position and results of operations of the HRA and the EDA component units are presented using the blended method. These blended component units, although legally separate entities, are, in substance, part of the City’s operations. The component units consist of Nonmajor Governmental Funds using the modified accrual basis of accounting, and as such are included in the other governmental funds. Separate financial statements for the HRA and EDA are not prepared. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of changes in net position) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. 53 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. 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. 54 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The Capital Improvement – general government building fund was established for improvements to city buildings. The EDA (component unit) Redevelopment Project fund was established to fund land acquisitions and other activities of redevelopment. The Capital Improvement – PIR Fund was established to account for projects that will be assessed to the affected properties. The HRA (component unit) Parkview Villa North & South fund was established to account for the revenue and expenditures of the senior housing complex. The City reports the following major proprietary funds: The water fund accounts for revenue and expenses associated with water services to area residents. The sewer fund accounts for revenues and expenses associated with sewer disposal within the City. The refuse fund accounts for revenues and expenses associated with organized collection of refuse and recycling within the City. The storm sewer fund accounts for revenues and expenses associated with storm water disposal. The liquor fund accounts for revenues and expenses associated with the operation of three off-sale liquor stores. Additionally, the City reports the following fund types: Internal service funds account for municipal service center, information systems, risk management and certain employee benefit services provided to other departments of the City on a cost reimbursement basis. 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. 55 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 2019, liquor sales discounts were $317,949. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETARY DATA The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing on January 1 of the following year. At least one special Council meeting is conducted to obtain public comments as required by the State Truth in Taxation Law. The City Council annually adopts budgets prior to January 1 for the General Fund and the following special revenue funds: Nonmajor special revenue funds: Cable Television Fund Library Fund After-School Programs Fund Twenty-First Century Arts Fund Special Projects Fund Planning and Inspections Fund Downtown Parking 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. 56 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 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. 57 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes received by the City are recognized as revenue for the current year. Delinquent taxes that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent taxes receivable in governmental funds are offset by deferred inflow of resources. 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. 58 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. 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: Capitalization Threshold Land $1 Buildings 25,000 Equipment 5,000 Infrastructure 250,000 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. 59 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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: Capital Assets Buildings (and building components) 10 - 50 years Equipment 3 - 15 years Infrastructure 20 - 60 years L. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits to certain limits. All vacation pay and the vested portion of sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits. Typically, resources from the employee benefits 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. 60 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Committed – consist of internally imposed constraints. These constraints are established by Resolution of the City Council. Once adopted, the limitation imposed requires a similar action be taken to remove or revise the limitation. Assigned – consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council resolution 2010-138, the City Manager is authorized to establish assignment of fund balance. Unassigned – is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1) committed, 2) assigned and 3) unassigned. O. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. 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. 61 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Deferred Inflows of resources: In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow or resources (revenue) until that time. 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. Investments are reported at fair value. 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 ($19,449,462) difference are as follows: Pollution Remediation Obligation ($108,475) Accrued interest payable (228,369) Bonds payable (19,112,618) Adjustment to fund balance - total governmental funds - to arrive at net position of governmental activities ($19,449,462) 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. 62 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The difference is the amount by which depreciation exceeded capital outlay in the current year.” The details of this ($1,438,217) difference are as follows: Total capital outlay in government fund financial statements $1,134,549 Disposal of capital assets (59,507) Depreciation expense (2,513,259) Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net position of governmental activities. ($1,438,217) Another element of that reconciliation states, “The issuance of long-term debt provides current financial resources to the governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position however. This amount is the net effect of these differences in the treatment of long-term debt.” The details of this ($3,273,999) difference are as follows: Principal repayments including early redemptions: General obligation bonds $3,105,000 Revenue bonds 125,000 Amortization of deferred premiums 43,999 Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net position of governmental activities. $3,273,999 63 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Another element of that reconciliation states, “Revenue earned in the current year, that is unavailable in the current year is not reported in the governmental funds. Whereas, this amount is reported in the statement of activities in the year in which it was earned”. The details of this ($268,880) difference are as follows: Unavailable revenue - General property taxes: At December 31, 2018($240,487) At December 31, 2019294,263 Unavailable revenue - Tax increment taxes: At December 31, 2018(9,213) At December 31, 201914,481 Unavailable revenue - Special assessments: At December 31, 2018(1,990,373) At December 31, 20191,662,449 Unavailable revenue - Due from other government: At December 31, 2018 - At December 31, 2019 - Unavailable revenue - Loan receivable: At December 31, 2018(6,916,000) At December 31, 20196,916,000 Adjustment to net changes in fund balances - total governmental funds - to arrive at changes in net position of governmental activities.($268,880) T. STATEMENT OF CASH FLOWS For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. All of the Proprietary Funds' equity in the City-wide cash and investment management pool is considered to be cash equivalents. Note 2 DEPOSITS AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds of the City. The City's total cash and investment balances as of December 31, 2019 are as follows: Carrying Amount At Fair Value Investments $32,679,560 Deposits 3,832,173 Cash on hand 7,810 $36,519,543 64 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. 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. The City has no additional deposit policies addressing custodial credit risk. At December 31, 2019, the bank balances of the City’s deposits were insured by the FDIC or covered by pledged collateral held in the City’s name. 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. Deposits as of December 31, 2019 are as follows: Carrying Bank Amount At Balances Fair Value Demand deposits $3,105,165 $2,563,534 Time deposits 1,268,639 1,268,639 Total $4,373,804 $3,832,173 65 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 B. INVESTMENTS Minnesota Statutes Section 118A authorizes the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies described in Section 118A.05. This includes primarily money market funds rated in the top two rating categories by a national rating service, and companies whose only investments are described in items a) through h) of this note. c) Obligations of the State of Minnesota or any of its municipalities as follows: (1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; (2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and (3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. (4) any security which is an obligation of a school district with an original maturity not exceeding 13 months and rated in the highest category by a national bond rating service, or enrolled in the credit enhancement program pursuant to Section 126C.55. 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. 66 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Investments as of December 31, 2019 are as follows: Weighted Average Carrying MaturitiesAmount AtPercentage In YearsFair Valueof Total Notes issued by U.S. government agencies: Federal Home Loan Bank Federal National Mortgage Association4.7$452,6931% Federal Home Loan Mortgage Corporation3.06,894,80721% Federal Farm Credit Bank3.8748,5222% Federal Agricultural Mortgage Corporation1.01,004,1403% Municipal Bonds Des Moines Iowa Area Comm College2.4606,2422% Negotiable Certificates of Deposit*1.313,172,48440% Money market mutual funds: Evergreen U.S. Government FundLess than 1yr1,345,2224% Federated Govt Oblig InstlLess than 1yr3,955,90012% Federated Investors I Prime ValueLess than 1yr4,499,55014% Total investments$32,679,560100% * from various issuers, each less than 1% of the fair value of total investments The City has the following recurring fair value measurements as of December 31, 2019:  Money market mutal funds are investments not categorized.  All others are values using Level 2 inputs, significant other observable inputs. 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, 2019, 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, 2019, 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 67 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Standard and Poors and Aaa by Moody’s Investor Service. The City’s investment policies do not further address credit risk, beyond the limitations imposed in MN Statutes section 118A. 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, 2019. d) Custodial credit risk – Custodial credit risk is the risk that in the event of a failure of the counterparty, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. As December 31, 2019, investments in securities are held by the City’s three broker-dealers in the City’s name, with $500,000 of those securities at each broker-dealer insured by SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This additional insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts. Investments in money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. Note 3 RECEIVABLES Significant receivables balances not expected to be collected within one year of December 31, 2019 are as follows: Total Capital2008A TaxableAnoka CountyEDACapital ImprovementGO Housing ImpComm DevAdministrationImprovement PIR FundArea Bonds FundProgram Fund(Component Unit)Development Special assessments receivable$ - $835,644$279,904$ - $ - $ - $1,115,548 Loan receivable6,585,000 - - 231,000 100,000 66,808 6,982,808 Total $6,585,000$835,644 $279,904 $231,000 $100,000 $66,808$8,098,356 Major Funds HRA (component unit) Parkview Villa North & South Nonmajor Funds On September 24, 2015, the Housing and Redevelopment Authority (HRA) sold a 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 of the Parkview Villa North portion of the facility as a Public Housing Agency project. 68 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 Loan TaxesIncrementAssessmentsReceivableTotal Major Funds: General Fund$283,532$ - $ - $ - $283,532 Capital Improvements - PIR Funds - - 1,300,078 - 1,300,078 HRA Parkview Villa North & South - - - 6,585,0006,585,000 Nonmajor Governmental Funds:10,73114,482362,371331,000718,584 Total unavailable revenue $294,263$14,482$1,662,449$6,916,000$8,887,194 69 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019 is as follows: Beginning Ending BalanceAdditionsDeletionsBalance Governmental activities: Capital assets - not depreciated: Land $6,440,531$ - $ - $6,440,531 Construction in progress 1,270,724 317,989 (1,223,330) 365,383 Total capital assets not being depreciated 7,711,255 317,989 (1,223,330) 6,805,914 Capital assets - being depreciated: Buildings 32,528,731 - (222,644) 32,306,087 Equipment 10,103,175 910,732 (623,823) 10,390,084 Infrastructure 34,799,459 1,152,415 - 35,951,874 Total capital assets being depreciated 77,431,365 2,063,147 (846,467) 78,648,045 Less accumulated depreciation for: Buildings 10,824,688 926,643 (164,579) 11,586,752 Equipment 7,366,257 554,288 (622,381) 7,298,164 Infrastructure 19,384,595 1,109,930 - 20,494,525 Total accumulated depreciation 37,575,540 2,590,861 (786,960) 39,379,441 Capital assets being depreciated - net 39,855,825 (527,714) (59,507) 39,268,604 Governmental activities capital assets - net47,567,080 (209,725) (1,282,837) 46,074,518 Business-type activities: Capital assets - not depreciated: Land 2,349,213 - - 2,349,213 Construction in progress 84,689 60,888 (76,948) 68,629 Total capital assets not being depreciated 2,433,902 60,888 (76,948) 2,417,842 Capital assets - being depreciated: Buildings 5,679,894 - (6,000) 5,673,894 Equipment 2,515,432 227,213 (25,244) 2,717,401 Infrastructure 19,308,003 - - 19,308,003 Total capital assets being depreciated 27,503,329 227,213 (31,244) 27,699,298 Less accumulated depreciation for: Buildings 2,160,466 160,644 (6,000) 2,315,110 Equipment 1,829,604 253,101 (25,244) 2,057,461 Infrastructure 9,910,696 459,536 - 10,370,232 Total accumulated depreciation 13,900,766 873,281 (31,244) 14,742,803 Capital assets being depreciated - net 13,602,563 (646,068) - 12,956,495 Business-type activities capital assets - net 16,036,465 (585,180) (76,948) 15,374,337 Total capital assets - net 63,603,545 (794,905) (1,359,785) 61,448,855 70 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Depreciation expense was charged to functions/programs of the primary government – governmental activities as follows: Governmental activities: General government $35,307 Public safety 597,961 Public works 1,131,124 Culture and recreation 746,024 Community development 2,844 Depreciation on capital assets held by governmental internal service activities is charged to each function based on use: Municipal Service Center 67,516 Information Systems 10,085 Total depreciation expense - capital assets held by governmental activities $2,590,861 Depreciation expense was charged to functions/programs of the primary government - business-type activities as follows: Business-type activities: Water $296,023 Sewer 166,925 Refuse 2,500 Storm sewer 116,472 Liquor 139,489 Total depreciation expense - capital assets held by business-type activities$721,409 71 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 6 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS INTERFUND RECEIVABLES, PAYABLES Individual fund interfund receivable and payable balances at December 31, 2019 are as follows: Fund Receivable Payable Major Funds: EDA Redevelopment Project $ - $1,255,488 Nonmajor funds 1,407,905 152,417 Total $1,407,905 $1,407,905 All interfund balances at December 31, 2019, reflect lending arrangements to cover deficit cash balances at yearend. Substantially all such other amounts are expected to be repaid within one year. INTERFUND TRANSFERS Interfund transfers during the year ended December 31, 2019 are as follows: EDACapital CapitalOtherInternal Redevelopment Imp PIRImprvmts GenGovtlService GeneralProjectFundGovt BldgFundsFundsTotal Transfers out: Major funds: Governmental: General$ - $ - $35,518$23,000$135,000$ - $193,518 Municipal State Aid Street - - - - - - - Capital Imprvmts PIR - 47,900 - - 88,343 - 136,243 Enterprise: Water96,500 - - - - - 96,500 Sewer96,500 - - - - - 96,500 Refuse83,800 - - - - - 83,800 Liquor95,400 - - - 50,000 - 145,400 Nonmajor funds: Other governmental funds100,2001,034,726 - - 352,91724,3881,512,231 Total$472,400$1,082,626$35,518$23,000$626,260$24,388$2,264,192 Transfers In Major FundsNonmajor Funds Governmental 72 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 2019 interfund transfers were primarily for the following purposes: a) To fund capital projects and equipment replacement b) To fund debt service funds with pledged resources from the funds authorized to collect those resources c) To fund general government functions of the General Fund which are broadly applicable to all activities of the primary government. 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, 2019, are as follows: Pledged revenue, if any, in addition toOriginal InterestIssueFinal Balance general property taxesIssueRateDateMaturityEnd of Year Governmental activities: GO Public facilities series 2009ANone3,005,0002.00-4.75%7/1/20092/1/2038 - GO Library series 2015ANone6,875,0002.50-3.25%3/4/20152/1/20366,075,000 GO Refunding series 2017B - Advanced RefundingNone8,505,0002.65-3.25%7/6/20172/1/20387,970,000 GO Refunding series 2018A - RefundingNone2,070,0002.45-3.45%12/27/20182/1/20382,070,000 Taxable GO tax increment bonds series 2009BTax increment580,000 3.40-5.10%7/1/20092/1/2021 - Taxable GO housing imprvmt area series 2008ASpecial assessments 975,0005.00-6.05%7/16/20082/1/2024420,000 GO Public Facilities series 2009ASpecial assessments605,0002.00-4.75%7/1/20092/1/2019 - GO Improvement series 2013ASpecial assessments235,0000.40-2.50%11/21/20132/1/2024110,000 GO Improvement series 2013A - RefundingSpecial assessments328,0210.40-2.50%11/21/20132/1/202020,000 Business-type activities: GO Public Facilities series 2009AUtility revenues325,0002.00-4.75%7/1/20092/1/2019 - GO Utility revenue series 2013AUtility revenues1,685,0000.40-2.50%11/21/20132/1/2024990,000 GO Refunding series 2017A - RefundingLiquor revenues3,265,0002.00-3.00%7/6/20172/1/20292,835,000 Total general obligation bonds outstanding $20,490,000 73 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 As of December 31, 2019, the annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Principal Interest 2020 $850,000 $478,053 $445,000 $81,583 2021 870,000 450,345 450,000 72,918 2022 890,000 421,654 460,000 63,618 2023 920,000 392,056 475,000 53,709 2024 950,000 361,376 485,000 43,238 2025 760,000 335,332 285,000 33,600 2026 785,000 314,863 295,000 24,900 2027 815,000 294,107 300,000 17,325 2028 830,000 271,678 315,000 10,710 2029 860,000 247,754 315,000 3,620 2030-2034 4,730,000 850,385 - - 2035-2038 3,405,000 183,420 - - Total $16,665,000 $4,601,023 $3,825,000 $405,224 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, 2019 are as follows: Original InterestIssueFinal Balance Pledged revenueIssueRateDateMaturityEnd of Year Governmental activities: Tax increment revenue series 2016 - RefundingTax increment$2,43 5,0002.28-3.009%6/30/20162/15/2032$2,065,000 Total revenue bonds outstanding $2,065,000 74 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 As of December 31, 2019, the annual debt service requirements to maturity for revenue bonds are as follows: Fiscal Year Ending Governmental Activities December 31 Principal Interest 2020 $130,000 $61,957 2021 130,000 59,747 2022 135,000 57,295 2023 135,000 54,156 2024 140,000 50,200 2025 145,000 45,925 2026 145,000 40,850 2027 155,000 34,850 2028 160,000 28,550 2029 165,000 22,050 2030 170,000 16,200 2031 175,000 11,025 2032 280,000 4,200 Total $2,065,000 $487,005 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, 2019, and for the year then ended, is as follows: Related BondAs PercentageRelated Bond PledgedActivityPrincipalof RevenuePrincipalPledged RevenueFinancedand InterestPledgedand InterestRevenue Project-specificStreet special assessmentsimprovements$136,12895%$47,990$67,454 Project-specificPrivate. special assessmentsredevelopment486,16995%97,345109,679 Project-specificPublic/Private tax incrementredevelopment2,552,00683%188,873667,996 Water, sewer and storm-Utility system sewer net revenuesimprovements1,048,23915%212,7031,417,293 Total RemainingCurrent Year 75 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2019 is as follows: Beginning EndingDue Within BalanceAdditionsReductionsBalanceOne Year Governmental activities: Bonds payable: General obligation bonds repaid only with general taxes$18,855,000$ - ($2,740,000)$16,115,000$730,000 General obligation bonds with other pledged revenues 915,000 - (365,000)550,000120,000 Revenue bonds 2,190,000 - (125,000)2,065,000130,000 Unamortized premium/discount 426,617 - (43,999)382,618 - Total bonds payable 22,386,617 - (3,273,999)19,112,618980,000 Due to Other Government 5,200,000 - - 5,200,000 - Compensated absences 1,353,178487,104(716,574)1,123,708110,900 Net pension liability 8,059,561 - (101,465)7,958,096 - Postemployment benefits other than pensions 1,252,872264,694(96,931)1,420,635 - Total governmental activity long-term liabilities $38,252,228$751,798($4,188,969)$34,815,057$1,090,900 Business-type activities: Bonds payable: General obligation bonds with other pledged revenues$4,300,000$ - ($475,000)$3,825,000$445,000 Unamortized premium/discount 61,429 - (10,747)50,682 - Revenue bonds - - - $ - - Total bonds payable 4,361,429 - (485,747)3,875,682445,000 Compensated absences - - - - - Net pension liability - - - - - Total business-type activity long-term liabilities $4,361,429 $0($485,747)$3,875,682$445,000 Compensated absences, net pension liability and other postemployment benefits are liquidated by the employee benefits fund, an internal service 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. As of December 31, 2019 there was an estimated aggregate principal amount payable of approximately $63,996,595 in bonds of this type. 76 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 9 FUND EQUITY A. CLASSIFICATIONS At December 31, 2019, the City has various fund equities through legal restrictions and City Council authorizations. A summary of such classifications are as follows: G.O. PublicEDA (component Cap ImpHRA (component GeneralFacilitiesunit) Redev Gen Govtunit) ParkviewNonmajor FundBonds 2009A ProjectPIRBuildingVilla No & SoGov't Total 2019 Fund Balance Nonspendable Prepaid items $137,545$ - $ - $ - $ - $ - $2,587$140,132 Total nonspendable 137,545 - - - - - 2,587 140,132 Restricted for: Debt service - - - - - - 1,434,818 1,434,818 Streets - - - - - - 604,487 604,487 Tax Increment - - - - - - 2,121,769 2,121,769 Police Forfeiture - - - - - - 16,759 16,759 Grant sponsored Rec Programs - - - - - - 105,343 105,343 Capital Improvements/Replacement - - - - - - - - Housing & Redevelopment - - - - - - 66,839 66,839 Total restricted - - - - - - 4,350,015 4,350,015 Committed for: Downtown Parking Maintenance - - - - - - 11,873 11,873 Capital Improvements/Replacement - - - 869,892 4,887,960 - 5,500,793 11,258,645 Cable TV Operations - - - - - - 1,060,372 1,060,372 Library Operations - - - - - - 691,872 691,872 Economic Redevelopment - - 2,494,238 - - - 2,502,074 4,996,312 Total committed - - 2,494,238 869,892 4,887,960 - 9,766,984 18,019,074 Assigned for: 2020 Appropriation 52,471 - - - - - - 52,471 Unassigned:7,685,738 - - - - - (143,922) 7,541,816 Total 7,875,754$ -$ 2,494,238$ 869,892$ 4,887,960$ -$ 13,975,664$ 30,103,508$ 77 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 B. DEFICIT FUND BALANCE The following funds had fund deficits as of December 31, 2019. The City will finance these deficits through collections of tax increment and other revenues in future years. Nonmajor Funds: Debt Service Funds: TIF 47th and Grand ($1,042) TIF Central Valu Center (2,638) TIF Scattered Site ($140,242) ($143,922) C. MINIMUM FUND BALANCE POLICY The City Council has formally adopted a fund balance policy for the General Fund and the Library Fund (a non-major fund). The most significant revenue sources for these funds are property taxes. This revenue source is received in two installments during the year – June and December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The policy establishes a year-end target of unassigned fund balance for the General Fund and spendable fund balance for the Library fund equal to at least 45% of the next year’s budgeted expenditures. At December 31, 2019, 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 (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 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. 78 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. 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. 1. 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 Plan members. Members hired prior to July 1, 1989, receive the higher of method 1 or method 2 formulas. Only method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for a Coordinated Plan members is 1.2% of average salary for each of the first ten years and 1.7% of average salary for each additional year. Under Method 2, the accrual rate for Coordinated members is 1.7% of average salary for all years 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. Annuities, disability benefits, and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be equal to 50 percent of the costof- living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement. 2. 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 of 3% of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90. Annuities, disability benefits and survivor benefits are increased effective every January 1. Beginning January 1, 2019, the postretirement increase will be fixed at 1 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before 79 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. 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 2019. The City of Columbia Heights was required to contribute 7.50% for Coordinated Plan members in calendar year 2019. The City of Columbia Heights’ contributions to the GERF for the year ended December 31, 2019, were $460,213. The City of Columbia Heights’ contributions were equal to the required contributions as set by state statute. PEPFF Contributions Police and Fire members contribution rates increased from 10.8 percent of pay to 11.3 percent and employer rates increased from 16.2 percent to 16.95 percent on Janaury 1, 2019. The City of Columbia Heights’ regular contributions to the PEPFF for the year ended December 31, 2019, were $541,507. 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, 2019, the City of Columbia Heights reported a liability of $4,782,391 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 of $16 million to the fund in 2019. 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 State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $148,660. The net pension liability was measured as of June 30, 2019, 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’ proportionate share 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, 2018, through June 30, 2019, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2019, the City of Columbia Heights’ proportionate share was 0.0865% which was a decrease of 0.0021% from its proportionate share measured as of June 30, 2018. City's proportionate share of the net pension liability $4,782,391 State of Minnesota's proportionate share of the net pension liability associated with the city 148,660 Total $4,931,051 80 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 For the year ended December 31, 2019, the City of Columbia Heights recognized pension expense of $576,914 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $11,133 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2019, the City of Columbia Heights reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflow of Resources Differences between expected and actual economic experience 131,802$ -$ Changes in actuarial assumptions - 373,657 Differences between projected and actual investment earnings - 484,575 Changes in proportions 101,719 97,664 Contributions paid to PERA subsequent to the measurement date 232,154 - Total 465,675$ 955,896$ $232,154 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, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended Adjustments to December 31: Pension Expense 2020 $(226,916) 2021 (374,870) 2022 (128,295) 2023 7,706 2024 - Thereafter - $(722,375) PEPFF Pension Costs At December 31, 2019, the City of Columbia Heights reported a liability of $3,175,705 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2019, 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 proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2018, through June 30, 2019, relative to the total employer contributions received from 81 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 all of PERA’s participating employers. At June 30, 2018, the City’s proportionate share was 0.2983% which was an increase of 0.0033% from its proportionate share measured as of June 30, 2018. The City also recognized $40,270 for the year ended December 31,2019, as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the Police and Fire Fund each year until the plan is 90 percent funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier. For the year ended December 31, 2019, the City of Columbia Heights recognized pension expense of $404,044 for its proportionate share of the PEPFF’s pension expense. At December 31, 2019, the City of Columbia Heights reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflow of Resources Differences between expected and actual economic experience 134,993$ 480,053$ Changes in actuarial assumptions2,682,263 3,574,830 Differences between projected and actual investment earnings - 664,588 Changes in proportions 58,527 229,481 Contributions paid to PERA subsequent to the measurement date 272,256 - Total 3,148,039$ 4,948,952$ 82 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 $272,256 reported as deferred outflows of resources related to pensions resulting from the City of Columbia Heights’ contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year endedPension Expense December 31:Amount 2019 (262,118)$ 2020 (498,244) 2021 (1,317,345) 2022 (53,742) 2023 4,280 Thereafter - (2,127,169)$ D. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2019, actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumption: Inflation 2.50% per year Salary 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 for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25 percent per year for the General Employees Plan, 1.0 percent per year for the Police and Fire. Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the General Employees Plan was completed in 2019. The most recent four-year experience study for Police and Fire Plan was completed in 2016. The following changes in actuarial assumptions occurred in 2019: General Employess Fund  The morality projection scale was changed from MP-2015 to MP-2017.  The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 83 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Police and Fire Fund  The morality projection scale was changed from MP-2016 to MP-2017. 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 Equity35.5%5.10% Private Markets 25.0%5.90% Fixed Income 20.0%0.75% Internantional Equity 17.5%5.90% Cash Equivalents 2.0%0.00% Total 100.0% E. DISCOUNT RATE The discount rate used to measure the total pension liability in 2019 was 7.50%. 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 and the Police and Fire 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. 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 8.50%2,239,567$ 8.50%61$ Current Discount Rate7.50%4,782,391 7.50%3,175,705 1% Lower 6.50%7,861,994 6.50%6,941,501 General Employees FundPolice and Fire Fund Sensitivity of Net Pension Liability at Current Single Discount Rate (In thousands) 84 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 G. PENSION EXPENSE Pension expense recognized by the City for the fiscal year ended December 31, 2019 is as follows: GERF $ 588,047 PEPFF 404,044 Total $ 992,091 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. Note 11 DEFINED CONTRIBUTION PLAN A. FIRE RELIEF ASSOCIATION, PAID ON-CALL DIVISION The Columbia Heights Fire Department Relief Association is the administrator of a single-employer pension plan for the paid on-call members of the City of Columbia Heights Fire Department. Through October 26, 1997, the association operated as a defined benefit plan. Effective October 27, 1997, the Association amended its by-laws and converted to a defined contribution plan. The pension plan was fully funded at the time of conversion. Benefits and contribution requirements are established by the Association’s by-laws and can be amended by the Association’s Board of Directors with approval from the City. All provisions are within limitations established by Minnesota statutes. Type of Benefit. The exclusive pension provided by the Association is a "Defined Contribution Lump Sum Service Pension" as defined in Minnesota Statutes §424A.02, Subdivision 4. Contributions Required and Contributions Made. No contributions are required from the plan members or the City. The plan is funded through state aid, investment income and discretionary contributions from the City. For 2019, state aid was contributed to the plan. This state aid revenue and the related contribution expense/expenditure of $105,612 are recognized in the accompanying financial statements for the year ended December 31, 2019. 85 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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 Contribution Amount Percentage of Covered Payroll Employees and For the Year Ended: Employee Employer Employee Employer Employers December 31, 2019 $ 390 $ 390 5% 5% 5% December 31, 2018 $ 465 $ 465 5% 5% 5% December 31, 2017 $ 680 $ 680 5% 5% 5% 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. No assets are accumlated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. 86 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 B. FUNDING POLICY Participants under the implicit rate subsidy provision are required to contribute 100% of the stated premium billed by the insurer. For 2019, participants under disabled public safety retiree provision were required to contribute $0 for single coverage or a portion of the stated premium billed by the insurer for family coverage. Under both provisions of the plan, the City is only required to contribute on a pay-as-go basis. This amount is listed below for the current year. The State of Minnesota, solely at its option, reimburses the City annually for a portion of the City’s costs under the disabled public safety retiree provision. Historically, these reimbursements have approximated 60% of the pay-as-go cost of this plan provision. These reimbursements are reported as revenue in the year received, separate from OPEB expenses/expenditures. C. PARTICIPANTS As of January 1, 2019 actuarial valuation, participants of the plan consisted of: Active Employees 116 Inactive employees or beneficiaries currently receiving benefits 23 139 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $1,420,635 was measured as of December 31, 2019, and was determined by an acturial valuation as of January 1, 2019. Changes in the total OPEB liability during 2019 were: Balance - beginning of year $ 1,252,872 Charges for the year: Service Cost 27,667 Interest 50,256 Change of benefit terms - Differences between expected and actual experience 186,771 Changes in assumptions (46,691) Benefit payments (50,240) Net changes 167,763 Balance - end of year $ 1,420,635 87 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2019 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.50% Salary increases (Average)3.50% Discount rate 2.74% Investment rate of return N/A Retirees’ share of benefit-related costs 100% Healthcare cost trend rates: First year (FYE 2019)3.00% Second year (FYE 2020)6.75% Third year (FYE 2021)6.50% Ultimate year (FYE 2031)4.00% Years to ultimate year 12 Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20 year AA rated municipal bond rate as of December 31, 2019. Mortality rares were based on the RP-2014 Total Dataset Mortality tables with Scale MP-2014 and Scale MP-2018. Based on past experience of the plan, 60% of future retirees are assumed to continue medical coverage until age 65. 80% of police/fire employees are assumed to continue medical coverage until age 65. F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE. The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower (1.74%) or 1% higher (3.74%) than the current discount rate: 1% Decrease (1.74%) Discount Rate (2.74%) 1% Increase (3.74%) Total OPEB liability $ 1,568,179$ 1,420,635$ 1,291,335 88 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (5.5% decreasing to 3%) or 1% higher (7.5% decreasing to 5%) than the current healthcare cost trend rates. Health Cost 1% Decrease (5.5% decreasing to 3%) Trend Rates (6.5% Decreasing to 4%) 1% Increase (7.5% decreasing to 5%) Total OPEB liability $ 1,282,647$ 1,420,635 $ 1,579,778 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2019, the City recognized $86,287 of OPEB expense. At December 31, 2019, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $159,417 $ 0 Change of assumptions and other inputs $ 0 ($ 101,730) Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended December 31, OPEB Expense 2020($8,364) 2021 (8,364) 2022 (8,364) 2023 (8,364) 2024 (8,364) Thereafter (15,867) ($ 57,687) 89 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 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. 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, 2020. 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 $3,680.56. The payment reimburses the developer for land acquisition. Principal and interest payments will be completed February 1, 2020. 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, 2020. The current year abatement (TIF note payments) was $3,718. At December 31, 2019, the principal amount outstanding on the note was $31,714. 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 $33,337. At December 31, 2019, the principal amount outstanding on the note was $732,801. 90 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 TIF District R8, Townhouse View Project (Columbia Court Townhomes): 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 $14,702. At December 31, 2019, the principal amount outstanding on the note was $175,100. 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 bond payments, paying agent fees and $16,500 per payment period for administrative TIF expenses. 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 $423,192. At December 31, 2019, 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. 91 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Property, casualty and automobile insurance coverage are provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions. These deductibles are considered immaterial to the financial statements. The City carries commercial insurance for other risks of loss, including employee health and disability insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. B. LITIGATION The City attorney has indicated that any existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance or development agreements; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of funds which may be disallowed by the agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. D. CONTRACTUAL COMMITMENTS The City has entered into contractual commitments for street construction projects and other various projects that are in process at yearend. At December 31, 2019, the City’s obligation for such projects was approximately $422,000. E. POLLUTION REMEDIATION LIABILITY Prior to purchasing property located at 3930 University Avenue NE in 2019 for redevelopment, the City determined the property is contaminated from the prior owner’s business activities there. The City has begun a three-phase approach to remediate the soil and groundwater. Phase I and II, including a contamination investigation and preparation of a Response Action Plan were nearly complete at December 31, 2019. 92 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 The Minnesota Pollution Control Agency will review the Response Action Plan. Once approved, the City will begin the planned remediation of the site (Phase III), and also demolish the buildings on the property. The costs of the remediation are estimated at $108,000 using the expected value method, with those costs expected to be incurred in 2020. A liability for this estimate is recorded within the governmental activities of the December 31, 2019, Statement of Net Position. In 2019, Anoka County awarded the City a federal Community Development Block Grant (CDBG) to liquidate this liability, conditioned on performing the remediation. Note 15 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2021. Statement No. 89 Accounting for Interest Cost Incurredbefore the End of a Construction Period. The provisions of this Statement are effective for reporting periods beginning after December 15, 2020. Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting periods beginning after December 15, 2021. Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021, except the requirements related to the effective date of Statement 87 and Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative instruments are effective upon issuance. Statement No. 93 Replacement of Interbank Offered Rates. The removal of LIBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021. The requirements of this Statement relating to leases are effective for fiscal years beginning after June 15, 2021. All other requirements of this Statement are effective for reporting periods beginning after June 15, 2020. The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statements No. 87 may have a material impact. The effective dates above reflect the effective dates as postponed by Statement No. 95. 93 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2019 Note 16 SUBSEQUENT EVENTS AND UNCERTAINTIES The COVID-19 pandemic continues to cause rapidly changing disruptions world-wide. Management has evaluated these conditions and believes that it is not possible to reasonably estimate the financial impact, if any, of COVID-19 on the City’s financial statements at December 31, 2019. 94 REQUIRED SUPPLEMENTARY INFORMATION 95 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 2 For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget2018 ActualPositive Actual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes$10,051,000$10,051,000$10,156,071$105,071$9,601,516 Licenses and permits353,300353,300371,36918,069233,994 Intergovernmental930,300945,432970,49525,0631,006,512 Charges for services599,500625,150614,312(10,838)603,081 Fines and forfeitures86,00086,000116,75930,75993,251 Investment income: Interest and dividends90,00090,000212,174122,174121,687 Change in fair value - - 118,020118,020(30,248) Other revenues 14,50026,05019,344(6,706)29,000 Total revenues 12,124,600 12,176,932 12,578,544 401,612 11,658,793 Expenditures: General government: Council 174,100174,100157,47216,628136,693 Manager 568,620568,620466,948101,672523,810 Clerk 65,82065,82051,20614,614106,383 Legal 181,400181,400173,229 8,171175,934 Finance 922,300922,300915,805 6,495871,107 Assessing 126,265126,265125,286 979123,459 General government buildings 157,700157,700150,763 6,937141,186 Contingencies 35,00035,000 3,35031,6504,053 Total general government 2,231,205 2,231,205 2,044,059 187,146 2,082,625 Public safety: Police 4,837,8004,875,3504,693,753181,5974,387,845 Fire 1,762,6001,777,3821,675,053102,3291,711,236 Capital outlay - - 11,582(11,582) - Total public safety 6,600,400 6,652,732 6,380,388 272,344 6,099,081 Public works: Engineering 383,830383,830283,548100,282404,880 Maintenance 1,387,9731,387,9731,257,617130,3561,271,214 Capital outlay - - 60,817(60,817)15,657 Total public works 1,771,803 1,771,803 1,601,982 169,821 1,691,751 Other departments: Parks and recreation 1,897,0691,897,0691,794,915102,1541,785,380 Capital outlay - - - - - Total recreation 1,897,069 1,897,069 1,794,915 102,154 1,785,380 Total expenditures 12,500,477 12,552,809 11,821,344 731,465 11,658,837 Revenues over (under) expenditures (375,877)(375,877)757,2001,133,077 (44) 2019 See accompanying notes to the required supplementary information. 96 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 2 For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget2018 ActualPositive Actual OriginalFinalAmounts(Negative)Amounts Other financing sources (uses): Transfers in$472,400$472,400$472,400$ - $562,392 Transfers out(158,000)(158,000)(193,518)(35,518)(1,424,484) Total other financing sources (uses)314,400 314,400 278,882 (35,518)(862,092) Net change in fund balance($61,477)($61,477)1,036,082$1,097,559 (862,136) Fund balance - January 16,839,6727,701,808 Fund balance - December 31$7,875,754 $6,839,672 2019 See accompanying notes to the required supplementary information. 97 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS For The Last Ten Years 201720182019 Total OPEB liability: Service cost$39,449$40,684$27,667 Interest46,40045,26650,256 Differences between expected and actual experience - - 186,771 Changes in assumptions 45,106(86,181)(46,691) Benefit payments (43,938)(43,788)(50,240) Net change in total OPEB liability 87,017(44,019)167,763 Total OPEB liability - beginning 1,209,8741,296,8911,252,872 Total OPEB liability - ending $1,296,891$1,252,872$1,420,635 Covered-employee payroll $7,604,667$7,304,846$8,151,167 Total OPEB liability as a percentage of covered-employee payroll 17.1%17.2%17.4% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 98 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years 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 Measurement Fiscal Year(Percentage) ofof the NetLiabilityPension Liability Percentage of itsa Percentage DateEndingthe Net PensionPensionAssociatedAssociated with CoveredCoveredof the Total June 30December 31LiabilityLiability (a) with City (b)City (a+b)Payroll (c)Payroll ((a+b)/c)Pension Liability 2015 20150.0873%$4,524,339$ - $4,524,339$5,065,17389.3%78.2% 2016 20160.0849%6,893,45990,022 6,983,4815,265,065132.6%68.9% 2017 20170.0860%5,490,18369,015 5,559,1985,538,743100.4%75.9% 2018 20180.0886%4,915,165161,391 5,076,5565,958,30085.2%79.5% 2019 20190.0865%4,782,391148,660 4,931,0516,119,25280.6%80.2% 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. See accompanying notes to the required supplementary information. 99 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Last Ten Years StatutorilyContributions inContributionContributions 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% December 31, 2017428,288 428,288 -5,710,502 7.5% December 31, 2018459,367 459,367 -6,124,888 7.5% December 31, 2019460,213 460,213 -6,136,162 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. See accompanying notes to the required supplementary information. 100 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF EMPLOYER'S PROPORTIONATE SHARE OF PLAN NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years 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 Date Ending LiabilityLiability (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%12,842,1573,080,202 416.9%63.9% June 30, 2017December 31, 20170.3070%4,144,8653,156,438 131.3%85.4% June 30, 2018December 31, 20180.2950%3,144,3963,108,859 101.1%88.8% June 30, 2019December 31, 20190.2983%3,175,7053,145,971 100.9%89.3% 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. See accompanying notes to the required supplementary information. 101 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Last Ten Years StatutorilyContributions inContributionContributions 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 16.20% December 31, 2016500,328 500,328 -3,088,446 16.20% December 31, 2017516,268 516,268 -3,186,840 16.20% December 31, 2018503,189 503,189 -3,106,104 16.20% December 31, 2019541,507 541,507 -3,194,734 16.95% 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. See accompanying notes to the required supplementary information. 102 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 Note A LEGAL COMPLIANCE – BUDGETS The legal level of budgetary control is at the fund level. The General Fund and the following Special Revenue Fund budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America:  Nonmajor special revenue funds: Cable Television Fund Library Fund After-School Programs Fund Twenty-first Century Arts Fund Special Projects Fund Downtown Parking Fund Planning and Inspections Fund Economic Development Authority (Component Unit): Economic Development Authority Administration Fund Expenditures occurred in excess of appropriations in the following funds:  Special Projects Fund exceeded the budget by $457. However, actual revenue exceeded the budget by $236,127.  Downtown Parking Fund exceeded the budget by $25,704. However, actual revenue exceeded the budget by $28,815. Note B OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. 2019 Changes Changes in Actuarial Assumptions: - The discount rate was changed from 4.11 percent to 2.74 percent based on the 20 year AA rated municipal bond rates. - Decrement assumptions (i.e. withdrawal, retirement and mortality rates) have been updated to be the assumptions used in the June 30, 2019 General Employees Retirement Fund and June 30, 2019 Public Employees Police and Fire Fund actuarial valuations. - Healthcare trend rates were reset to reflect updated cost increase expectations. - The general inflation rate was changed to the 2.50% rate used in the June 30, 2019 General Employees Retirement Fund and June 30, 2019 Public Employees Police and Fire Fund actuarial valuations (from 2.75%). - The additional family direct subsidy premium for public safety officers disabled in the line of duty was updated with new amounts of $200 (family subsidy of $1,095 – single subsidy of $895) for 2019, $250 ($1,175 - $925) for 2020, and $300 ($1,255 - $955) for 2021. The additional family direct subsidy premium of $300 in 2021 is assumed to continue at $300 after 2021 (changed from $0 for 2019 and later). 103 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 2018 Changes Changes in Actuarial Assumptions: - The discount rate was changed from 3.44 percent to 4.11 percent based on the 20 year AA rated municipal bond rates. - Decrement assumptions (i.e. withdrawal, retirement and mortality rates) have been updated to be the assumptions used in the July 1, 2018 General Employees Retirement Fund and July 1, 2018 Public Employees Police and Fire Fund actuarial valuations. Note C Pension Information PERA – General Employees Retirement Fund 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018 Changes in the Plan Provisions - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2015 to MP-2017. - The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes in Actuarial Assumptions: - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non- vested deferred member liability. - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. - The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. - 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 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 104 CITY OF COLUMBIA HEIGHTS, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2019 PERA – Public Employees Police and Fire Fund 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018 Changes in the Plan Provisions: - There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2016 to MP-2017. 2017 Changes Changes in Actuarial Assumptions: - The single discount rate was changed from 5.6 percent to 7.5 percent. - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. - Assumed rates of retirement were changed, resulting in fewer retirements. - The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non- vested members. - The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. - Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. - Assumed percentage of married female members was decreased from 65 percent to 60 percent. - Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. - The assumed percentage of female members electing Joint and Survivor annuities was increased. - The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 2016 Changes Changes in Actuarial Assumptions: - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent thereafter to 1.0 percent per year for all future years. - The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate changed from 7.9 percent to 5.6 percent. - The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 105                                                 ‐ This page intentionally left blank ‐  106 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 107                                                 ‐ This page intentionally left blank ‐  108 NONMAJOR GOVERNMENTAL FUNDS 109                                                 ‐ This page intentionally left blank ‐  110 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.) 111                                                 ‐ This page intentionally left blank ‐  112 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING BALANCE SHEET Statement 15 NONMAJOR GOVERNMENTAL FUNDS December 31, 2019 Total Nonmajor Special DebtCapital Governmental AssetsRevenueServiceProjectFunds Cash and investments$4,173,845$3,359,005$4,711,721$12,244,571 Receivables: Accounts53,311 - - 53,311 Special assessments - 362,371 - 362,371 Taxes15,19624,184 - 39,380 Loans331,000 - 66,808397,808 Interest6,7003,90011,20021,800 Due from other governmental units10,126 - 662,817672,943 Interfund receivable 266,177141,7281,000,000 1,407,905 Prepayments 2,587 - - 2,587 Real estate held for resale 54,793201,366220,149 476,308 Total assets $4,913,735$4,092,554$6,672,695$15,678,984 Liabilities and Fund Balance Liabilities: Accounts payable $38,541$158,914$80,751 $278,206 Accrued salaries and withholdings payable 48,207 - 6,624 54,831 Contracts payable 3,500 - - 3,500 Due to other governmental units 73,258 - 33 73,291 Interfund payable 8,295144,122 - 152,417 Unearned revenue 42,357 - - 42,357 Deposits 350,625 - 29,509 380,134 Total liabilities 564,783303,036116,917 984,736 Deferred inflows of resources: Unavailable revenue 341,731376,853 - 718,584 Total deferred inflows of resources 341,731376,853 0 718,584 Fund balance: Nonspendable 2,587 - - 2,587 Restricted 188,9413,556,587604,487 4,350,015 Committed 3,815,693 - 5,951,291 9,766,984 Unassigned - (143,922) - (143,922) Total fund balance 4,007,2213,412,6656,555,77813,975,664 Total liabilities, deferred inflows of resources, and fund balance $4,913,735$4,092,554$6,672,695$15,678,984 113 CITY OF COLUMBIA HEIGHTS, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Statement 16 NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2019 Total Nonmajor Special Debt CapitalGovernmental RevenueServiceProject Funds Revenues: Taxes $1,199,371$674,972$ - $1,874,343 Tax increment collections - 972,330 - 972,330 Special assessments - 105,479 - 105,479 Licenses and permits 273,460 - - 273,460 Intergovernmental 34,236504,034664,125 1,202,395 Charges for services 483,483 - 93,907 577,390 Fines and forfeitures 9,344 - - 9,344 Investment income: Interest and dividends 56,000 40,19996,576 192,775 Change in fair value 31,100 18,79951,800 101,699 Other revenues 80,873 66,05682,997 229,926 Total revenues 2,167,867 2,381,869 989,405 5,539,141 Expenditures: Current: General government 98,425 - - 98,425 Public safety 25,872 - 8,134 34,006 Public works - - 514,218 514,218 Culture and recreation 1,074,678 - - 1,074,678 Community development 593,253 20,993 - 614,246 Capital outlay: General government 24,388 24,388 Public safety - - 790,255 790,255 Public works - - 184,919 184,919 Culture and recreation - - 6,314 6,314 Debt service: Principal retirement - 1,200,000 - 1,200,000 Interest and fiscal charges - 607,637 - 607,637 Developer incentives - 474,949 - 474,949 Total expenditures 1,792,228 2,303,579 1,528,228 5,624,035 Revenues over (under) expenditures 375,639 78,290 (538,823)(84,894) Other financing sources (uses): Transfers in 146,000130,260374,388 650,648 Transfers out (411,200)(41,917)(1,034,726)(1,487,843) Payment to refunded bond escrow - (2,030,000) - (2,030,000) Sale of capital assets - - 30,450 30,450 Total other financing sources (uses)(265,200)(1,941,657)(629,888)(2,836,745) Net change in fund balance 110,439 (1,863,367)(1,168,711)(2,921,639) Fund balance - January 1 3,896,7825,276,0327,724,48916,897,303 Fund balance - December 31 $4,007,221$3,412,665$6,555,778$13,975,664 114 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. 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. Twenty-first Century Arts Fund 262 – established to account for revenues and expenditures associated with a grant received through 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. Downtown Parking Fund 228 – established to account for revenues and expenditures associated with municipal parking in the downtown area. 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. 115                                                 ‐ This page intentionally left blank ‐  116 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. 117 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2019 Cable Television Fund 225 Police Forfeiture Fund 265 Library Fund 240 After-School Programs Fund 261 Twenty-first Century Arts Fund 262 Assets Cash and investments $1,008,582$27,416$734,688$97,498$ - Receivables: Accounts 53,311 - - - - Taxes - - - - - Loans - - - - - Interest 1,900 - 900 200 - Due from other governmental units - - - - 10,126 Interfund receivable - - - 8,295 - Prepayments - - 2,587 - - Real estate held for resale - - - - - Total assets $1,063,793 $27,416 $738,175 $105,993 $10,126 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $1,648$ - $11,432 $657$1,715 Accrued salaries and withholdings payable 1,773 - 27,774 - 109 Contracts payable - - - - - Due to other governmental units - - 4,510 - - Interfund payable - - - - 8,295 Unearned revenue - 10,657 - - - Deposits - - - - - Total liabilities 3,42110,65743,716 65710,119 Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources 0 0 0 0 0 Fund balance: Nonspendable - - 2,587 - - Restricted - 16,759 - 105,336 7 Committed 1,060,372 - 691,872 - - Total fund balance 1,060,37216,759694,459105,336 7 Total liabilities, deferred inflows of resources, and fund balance $1,063,793 $27,416 $738,175 $105,993 $10,126 118 Statement 17 Contributed Projects - Recreation - Fund 881 Contributed Projects - Other - Fund 883 Special Projects Fund 226 Downtown Parking Fund 228 Planning and Inspections Fund 201 Anoka County Comm. Dev. Programs Fund 202 EDA Administration Fund 204 (Component Unit) Total Nonmajor Special Revenue Funds $194,545$226,406$795,041$30,283$439,113$12,046$608,227$4,173,845 - - - - - - - 53,311 - - - - - - 15,196 15,196 - - - - - 231,000 100,000 331,000 300 500 1,200 100 700 - 900 6,700 - - - - - - - 10,126 - - - - - - 257,882 266,177 - - - - - - - 2,587 - - - - - 54,793 - 54,793 $194,845 $226,906 $796,241 $30,383 $439,813 $297,839 $982,205 $4,913,735 $870 $5,070$ - $15,010 $1,990$ - $149 $38,541 - - - - 15,832 - 2,719 48,207 - - - 3,500 - - - 3,500 - - - - 68,748 - - 73,258 - - - - - - - 8,295 - - 31,700 - - - - 42,357 - - - - - - 350,625 350,625 870 5,070 31,700 18,510 86,570 0 353,493 564,783 - - - - - 231,000 110,731 341,731 00000231,000 110,731 341,731 - - - - - - - 2,587 - - - - - 66,839 - 188,941 193,975221,836764,541 11,873353,243 - 517,981 3,815,693 193,975221,836764,541 11,873353,243 66,839 517,981 4,007,221 $194,845 $226,906 $796,241 $30,383 $439,813 $297,839 $982,205 $4,913,735 119 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, 2019 Cable Television Fund 225 Police Forfeiture Fund 265 Library Fund 240 After-School Programs Fund 261 Twenty-first Century Arts Fund 262 Revenues: Taxes $ - $ - $955,095$ - $ - Licenses and permits - - - - - Intergovernmental - - - - 34,236 Fees/program revenues 182,085 - 15,278 6,8165,161 Rents - - - - - Fines and forfeitures - - 9,344 - - Investment income: Interest and dividends 16,000 - 7,700 1,800 - Change in fair value 8,900 - 4,300 1,000 - Other revenues: Contributions - - - - - Miscellaneous 35,399 - 1,104 - - Total revenues 242,384 0992,821 9,61639,397 Expenditures: Personal services 43,479 - 637,245 5,61718,685 Supplies 11,826 - 88,179 - 2,691 Other services and charges 43,120 - 232,16410,08518,014 Total expenditures 98,425 0957,58815,70239,390 Revenues over (under) expenditures 143,959 035,233 (6,086)7 Other financing sources (uses): Transfers in - - 11,000 - - Transfers out (64,500) - (14,700) - - Total other financing sources (uses)(64,500)0(3,700)0 0 Net change in fund balance 79,459 031,533 (6,086)7 Fund balance - January 1 980,91316,759662,926111,422 - Fund balance - December 31 $1,060,372 $16,759 $694,459 $105,336 $7 120 Statement 18 Contributed Projects - Recreation - Fund 881 Contributed Projects - Other - Fund 883 Special Projects Fund 226 Downtown Parking Fund 228 Planning and Inspections Fund 201 Anoka County Comm. Dev. Programs Fund 202 EDA Administration Fund 204 (Component Unit) Total Nonmajor Special Revenue Funds $ - $ - $ - $ - $ - $ - $244,276$1,199,371 - - - - 273,460 - - 273,460 - - - - - - - 34,236 - - 181,935 25,288 1,071 - 30417,664 - - 38,192 27,627 - - - 65,819 - - - - - - - 9,344 2,900 3,800 10,300 600 5,500 200 7,200 56,000 1,600 2,100 5,700 300 3,100 100 4,000 31,100 23,995 7,953 - - - - - 31,948 - 306 - - 413 11,703 - 48,925 28,495 14,159236,127 53,815283,544 12,003255,5062,167,867 - - - - 407,633 - 110,6111,223,270 11,094 19,985 - - 10,246 - 348144,369 200 5,887 497 50,704 29,980 - 33,938424,589 11,294 25,872 497 50,704447,859 0144,8971,792,228 17,201 (11,713)235,630 3,111(164,315)12,003110,609375,639 - - - - 135,000 - - 146,000 - - (300,000) - (16,000) - (16,000)(411,200) 0 0(300,000)0119,000 0 (16,000)(265,200) 17,201 (11,713)(64,370)3,111 (45,315)12,003 94,609110,439 176,774233,549828,911 8,762398,558 54,836423,3723,896,782 $193,975 $221,836 $764,541 $11,873 $353,243 $66,839 $517,981 $4,007,221 121 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CABLE TELEVISION FUND 225 Statement 19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Franchise fees$183,300$183,300$182,085($1,215)$191,415 Investment income: Interest and dividends - - 16,00016,00013,300 Change in fair value - - 8,9008,900(3,300) Other revenues: Miscellaneous 34,12534,12535,3991,27437,418 Total revenues 217,425217,425242,38424,959238,833 Expenditures: Personal services 45,90045,90043,4792,42128,990 Supplies 9,8009,80011,826(2,026)4,519 Other services and charges 84,12584,12543,12041,00541,647 Capital outlay - - - - - Total expenditures 139,825139,82598,42541,40075,156 Revenues over expenditures 77,60077,600143,95966,359163,677 Other financing sources (uses): Transfers in - - - 73,300 Transfers out (64,500)(64,500)(64,500) - (64,389) Total other financing sources (uses)(64,500)(64,500)(64,500) - 8,911 Net change in fund balance $13,100 $13,100 79,459$66,359 172,588 Fund balance - January 1 980,913 808,325 Fund balance - December 31 $1,060,372 $980,913 2019 122 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - POLICE FORFEITURE FUND 265 Statement 20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 20192018 Revenues: Forfeitures $ - $8,641 Expenditures: Supplies - 8,240 Capital outlay - 22,474 Total expenditures030,714 Revenues over (under) expenditures0 (22,073) Other financing sources (uses): Transfers out - - Net change in fund balance 0 (22,073) Fund balance - January 116,75938,832 Fund balance - December 31$16,759 $16,759 123 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - LIBRARY FUND 240 Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes$955,095$955,095$955,095$ - $919,244 Charges for services14,10514,10515,2781,17315,102 Fines12,50012,5009,344(3,156)10,661 Investment income: Interest and dividends10,00010,0007,700(2,300)14,700 Change in fair value - - 4,3004,300(3,600) Other revenues: Miscellaneous - - 1,1041,10475 Total revenues991,700 991,700 992,821 1,121 956,182 Expenditures: Personal services670,200670,200637,24532,955604,496 Supplies98,70098,70088,17910,52193,419 Other services and charges219,100219,100232,164(13,064)203,753 Total expenditures 988,000 988,000 957,588 30,412 901,668 Revenues over expenditures 3,700 3,700 35,233 31,533 54,514 Other financing sources (uses): Transfers in 11,00011,00011,000 - 11,000 Transfers out (14,700)(14,700)(14,700) - (14,711) Total other financing sources (uses)(3,700)(3,700)(3,700)0(3,711) Net change in fund balance $0 $0 31,533 $31,533 50,803 Fund balance - January 1 662,926 612,123 Fund balance - December 31 $694,459 $662,926 2019 124 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - AFTER-SCHOOL PROGRAMS FUND 261 Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Program revenue$20,000$20,000$6,816($13,184)$7,580 Investment income: Interest and dividends2,0002,0001,800(200)1,900 Change in fair value - - 1,0001,000 (500) Total revenues 22,00022,0009,616(12,384)8,980 Expenditures: Personal services 23,30023,3005,61717,68310,020 Supplies 3,0003,000 - 3,000 450 Other services and charges 18,00018,00010,0857,9159,026 Total expenditures 44,300 44,300 15,702 28,598 19,496 Revenues over (under) expenditures ($22,300)($22,300)(6,086)$16,214(10,516) Fund balance - January 1 111,422 121,938 Fund balance - December 31 $105,336 $111,422 2019 125 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS-RECREATION FUND 881 Statement 23 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 20192018 Revenues: Investment income: Interest and dividends$2,900$2,600 Change in fair value 1,600(700) Other revenue: Contributions 23,99532,130 Total revenues28,49534,030 Expenditures: Supplies 11,09413,479 Other services and charges2002,550 Total expenditures11,29416,029 Revenues over expenditures17,20118,001 Fund balance - January 1176,774158,773 Fund balance - December 31$193,975 $176,774 126 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTED PROJECTS - OTHER FUND 883 Statement 24 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 20192018 Revenues: Investment income: Interest and dividends$3,800$3,500 Change in fair value 2,100(900) Contributions 7,95337,820 Miscellaneous 306369 Total revenues14,15940,789 Expenditures: Supplies 19,98546,325 Other services and charges5,8871,518 Total expenditures25,872 47,843 Revenues over (under) expenditures(11,713)(7,054) Fund balance - January 1233,549240,603 Fund balance - December 31$221,836 $233,549 127 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND 226 Statement 25 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 Variance with Final Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Fees/program revenue$ - $ - $181,935$181,935$63,218 Rents - - 38,19238,19237,302 Investment income: Interest and dividends - - 10,30010,30014,000 Change in fair value - - 5,7005,700(3,500) Total revenues 0 0236,127236,127111,020 Expenditures: Other services and charges - - 497 (497)81,995 Revenues over (under) expenditures - - 235,630235,63029,025 Other financing sources (uses): Transfers in - - - - 4,116 Transfers out (300,000)(300,000)(300,000) - - Total other financing sources (uses)(300,000)(300,000)(300,000) - 4,116 Net change in fund balance ($300,000)($300,000)(64,370)$235,63033,141 Fund balance - January 1 828,911 795,770 Fund balance - December 31 $764,541 $828,911 2019 Budgeted Amounts 128 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - PLANNING AND INSPECTIONS FUND 201 Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Licenses and permits$366,500$366,500$273,460($93,040)$235,523 Fees/program revenues - - 1,071 1,0711,455 Investment income: Interest and dividends - - 5,500 5,5007,300 Change in fair value - - 3,100 3,100(1,800) Miscellaneous 2,1002,100413 (1,687)473 Total revenues 368,600 368,600 283,544 (85,056)242,951 Expenditures: Personal services 462,500462,500407,63354,867450,859 Supplies 2,4002,40010,246 (7,846)7,273 Other services and charges 22,70022,70029,980 (7,280)28,058 Total expenditures 487,600 487,600 447,859 39,741 486,190 Revenues over (under) expenditures (119,000)(119,000)(164,315)(45,315)(243,239) Other financing sources (uses): Transfers in 135,000135,000135,000 - 139,982 Transfers out (16,000)(16,000)(16,000) - (16,005) Total other financing sources (uses):119,000119,000119,000 - 123,977 Net change in fund balance $0 $0 (45,315)($45,315)(119,262) Fund balance - January 1 398,558 517,820 Fund balance - December 31 $353,243 $398,558 2019 129 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - ANOKA COUNTY COMM. DEV. PROGRAMS FUND 202 Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 20192018 Revenues: Intergovernmental$ - $ - Investment income: Interest and dividends200200 Change in fair value 100(101) Total revenues30099 Expenditures: Other services and charges - - Total expenditures00 Revenues over (under) expenditures30099 Fund balance - January 154,83654,737 Fund balance - December 31$55,136 $54,836 130 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - TWENTY-FIRST CENTURY ARTS FUND 262 Statement 28 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Intergovernmental$ - $40,000$34,236($5,764)$20,830 Fees/program revenue - 5,3005,161(139)4,768 Total revenues045,300 39,397 (5,903) 25,598 Expenditures: Personal services32,30032,30018,68513,61517,601 Supplies6,0006,0002,6913,309904 Other services and charges7,0007,00018,014(11,014)7,093 Total expenditures45,30045,30039,3905,91025,598 Revenues over (under) expenditures($45,300)$0 7$7 0 Fund balance - January 1 - - Fund balance - December 31$7 $0 2019 131 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND - DOWNTOWN PARKING FUND 228 Statement 29 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2019 With Comparative Amounts For The Year Ended December 31, 2018 Variance with Budgeted Amounts Final Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Fees $ - $ - $25,288(25,288)$ - Rents 25,00025,00027,627(2,627)34,252 Investment income: Interest and dividends - - 600 (600)300 Change in fair value - - 300 (300)(100) Total revenues 25,00025,00053,815(28,815)34,452 Expenditures: Supplies - - - - 312 Other services and charges 25,00025,00050,704(25,704)25,378 Total expenditures 25,00025,00050,704(25,704)25,690 Revenues over expenditures $0 $0 3,111$3,1118,762 Fund balance - January 1 8,762 - Fund balance - December 31 $11,873 $8,762 2019 132 CITY OF COLUMBIA HEIGHTS, MINNESOTA SPECIAL REVENUE FUND-EDA ADMINISTRATION FUND 204 Statement 30 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (COMPONENT UNIT) For The Year Ended December 31, 2019 With Comparative Actual Amounts For The Year Ended December 31, 2018 Variance with Budgeted AmountsFinal Budget-2018 ActualPositiveActual OriginalFinalAmounts(Negative)Amounts Revenues: Taxes$242,100$242,100$244,276$2,176$441,773 Intergovernmental- - - - 1,000 Fees/program revenues 500 500 30 (470)1,030 Investment income: Interest and dividends 2,0002,0007,2005,2006,200 Change in fair value - - 4,0004,000(1,500) Miscellaneous - - - - 2,707 Total revenues 244,600244,600255,50610,906451,210 Expenditures: Personal services 201,900201,900110,61191,289180,724 Supplies 1,5001,500 3481,152 23 Other services and charges 25,20025,20033,938(8,738)21,203 Total expenditures 228,600228,600144,89783,703201,950 Revenues over (under) expenditures 16,00016,000110,60994,609249,260 Other financing sources (uses): Transfers out(16,000)(16,000)(16,000) - (269,983) Net change in fund balance$0$094,609$94,609(20,723) Fund balance - January 1423,372444,095 Fund balance - December 31$517,981 $423,372 2019 133                                                 ‐ This page intentionally left blank ‐  134 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. 135 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2019 2008A Taxable GO Housing Improvement Area Bonds Fund 315 G.O. Public Facilities Bonds 2009A Fund 344 G.O. Improvement / Revenue Bonds 2013A Fund 345 GO Library Bonds 2015A Fund 346 GO Public Safety Ctr. Bonds 2017B Fund 347 GO Public Facilities Bonds 2018A Fund 348 Assets Cash and investments$241,207$ - $115,014$393,123$443,753$234,648 Receivables: Taxes - - - 1,9602,5541,959 Assessments362,371 - - - - - Interest 300 - 100200300200 Interfund receivable - - - - - - Real estate for resale - - - - - - Total assets$603,878 $0$115,114 $395,283$446,607 $236,807 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable$ - $ - $ - $ - $ - $500 Interfund payable - - - - - - Total liabilities 0 0 0 0 0 500 Deferred inflows of resources: Unavailable revenue 362,371 - - - - - Total deferred inflows of resources 362,371 0 0 0 0 0 Fund balance: Restricted 241,507 - 115,114395,283446,607236,307 Unassigned - - - - - - Total fund balance 241,507 0115,114395,283446,607236,307 Total liabilities, deferred inflows of resources, and fund balance $603,878 $0$115,114 $395,283$446,607 $236,807 136 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 Huset Park Area Fund 372 TIF Central Valu Center Fund 374 TIF 47th and Grand Fund 375 TIF Scattered Site Fund 391 Total Nonmajor Debt Service Funds $261,756$182,419$95,147$527,354$864,384$ - $ - $200 $3,359,005 - 318 - 84 17,309 - - - 24,184 - - - - - - - - 362,371 400 300 100 800 1,200 - - - 3,900 141,728 - - - - - - - 141,728 201,366 - - - - - - - 201,366 $605,250 $183,037 $95,247 $528,238 $882,893 $0 $0 $200 $4,092,554 $ - $1,921 $24,019 $ - $132,474 $ - $ - $ - $158,914 - - - - - 2,638 1,042 140,442 144,122 0 1,921 24,019 0 132,474 2,638 1,042 140,442 303,036 - 318 - (13)14,177 - - - 376,853 0 318 0 (13)14,177 0 0 0 376,853 605,250 180,798 71,228 528,251 736,242 - - - 3,556,587 - - - - - (2,638)(1,042)(140,242)(143,922) 605,250 180,798 71,228 528,251 736,242 (2,638)(1,042)(140,242)3,412,665 $605,250 $183,037 $95,247 $528,238 $882,893 $0 $0 $200 $4,092,554 EDA Component Unit 137 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2019 2008A Taxable GO Housing Improvement Area Bonds Fund 315 G.O. Public Facilities Bonds 2009A Fund 344 G.O. Improvement / Revenue Bonds 2013A Fund 345 GO Library Bonds 2015A Fund 346 GO Public Safety Ctr. Bonds 2017B Fund 347 GO Public Facilities Bonds 2018A Fund 348 Revenues: Taxes$ - $ - $ - $204,348$266,461 $204,163 Tax increment collections - - - - - - Special assessments 105,479 - - - - - Intergovernmental - - - 252,017 252,017 - Investment income: Interest and dividends 2,700 - 1,000 2,000 2,300 1,500 Change in fair value 1,500 - 600 1,100 1,300 899 Other revenues - - - - - - Total revenues 109,679 0 1,600 459,465 522,078 206,562 Expenditures: Community development: Other services and charges - - - - - - Debt service: Principal retirement 70,000 160,000 45,000 275,000 305,000 - Interest and fiscal charges 28,462 47,881 3,209 183,530 227,256 38,967 Developer incentives - - - - - - Total expenditures 98,462 207,881 48,209 458,530 532,256 38,967 Revenues over (under) expenditures 11,217 (207,881)(46,609)935 (10,178)167,595 Other financing sources (uses): Transfers in - - 65,854 - - 64,406 Transfers out - (41,917) - - - - Payment to refunded bond escrow - (2,030,000) - - - - Total other financing sources (uses) - (2,071,917)65,854 - - 64,406 Net change in fund balance 11,217(2,279,798)19,245 935 (10,178)232,001 Fund balance - January 1 230,2902,279,798 95,869 394,348 456,785 4,306 Fund balance - December 31 $241,507 $0 $115,114 $395,283 $446,607 $236,307 138 Statement 32 Tax Increment Bonds Fund 376 TIF Multi-Use Redevelopment Plan Fund 385 TIF Transition Block Fund 389 TIF 47th and Central Avenue Fund 371 TIF Huset Park Area Fund 372 TIF Central Valu Center Fund 374 TIF 47th and Grand Fund 375 TIF Scattered Site Fund 391 Total Nonmajor Debt Service Funds $ - $ - $ - $ - $ - $ - $ - $ - $674,972 - 32,780 53,472 191,599 652,796 - - 41,683 972,330 - - - - - - - - 105,479 - - - - - - - - 504,034 10,199 2,600 1,200 6,800 9,800 - - 100 40,199 2,000 1,400 700 3,800 5,400 - - 100 18,799 66,056 - - - - - - - 66,056 78,255 36,780 55,372 202,199 667,996 0 0 41,883 2,381,869 3,445 1,929 2,018 4,661 6,835 - 1,042 1,063 20,993 - - - 220,000 125,000 - - - 1,200,000 - - - 6,885 64,848 - - 6,599 607,637 - 3,718 48,039 - 423,192 - - - 474,949 3,445 5,647 50,057 231,546 619,875 0 1,042 7,662 2,303,579 74,810 31,133 5,315 (29,347)48,121 0 (1,042)34,221 78,290 - - - - - - - - 130,260 - - - - - - - - (41,917) - - - - - - - - (2,030,000) - - - - - - - - (1,941,657) 74,810 31,133 5,315 (29,347)48,121 0 (1,042)34,221 (1,863,367) 530,440 149,665 65,913 557,598 688,121 (2,638) - (174,463)5,276,032 $605,250 $180,798 $71,228 $528,251 $736,242 ($2,638)($1,042)($140,242)$3,412,665 EDA Component Unit 139                                                 ‐ This page intentionally left blank ‐  140 NONMAJOR CAPITAL PROJECT FUNDS The City of Columbia Heights had the following Nonmajor Capital Project Funds during the year: Municipal State Aid Street Fund 212/402 – maintained according to state statute to account for maintenance and construction of municipal state aid street systems. 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 Replacement – General Governmental Fund 431 – used to account for the replacement of capital assets as needed. 141 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2019 Municipal State Aid Street Fund 212 & 402 Capital Improvement Parks Fund 412 Assets Cash and investments$16,405$385,586 Receivables: Loans - - Interest - 700 Due from other governmental units595,814 - Interfund receivable - - Real estate held for resale - - Total assets$612,219$386,286 Liabilities and Fund Balance Liabilities: Accounts payable 1,1085,990 Accrued salaries and withholdings payable6,624 Due to other governmental units - 33 Deposits - - Total liabilities7,7326,023 Fund balance: Nonspendable - - Restricted 604,487 - Committed - 380,263 Total fund balance604,487380,263 Total liabilities and fund balance$612,219$386,286 142 Statement 33 Capital Improvement Development Fund 420 Infrastructure Replacement Fund 430 Capital Equipment Replacement General Gov't Fund 431 Total Nonmajor Capital Project Funds $539,858$1,548,379$2,221,493$4,711,721 66,808 - - 66,808 2,0002,9005,60011,200 67,003 - - 662,817 - - 1,000,0001,000,000 220,149 - - 220,149 $895,818$1,551,279$3,227,093$6,672,695 - - 73,65380,751 6,624 - - - 33 29,509 - - 29,509 29,509073,653116,917 - - - 604,487 866,3091,551,2793,153,4405,951,291 866,3091,551,2793,153,4406,555,778 $895,818$1,551,279$3,227,093$6,672,695 143 CITY OF COLUMBIA HEIGHTS, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2019 Municipal State Aid Street Fund 212 & 402 Capital Improvement Parks Fund 412 Revenues: Intergovernmental$512,916$50,403 Charges for services26,904 - Investment income: Interest and dividends - 5,500 Change in fair value - 3,100 Other revenues - - Total revenues 539,820 59,003 Expenditures: Current: Public Safety - - Public works 508,812 - Capital outlay General government - Public safety - - Public works 11,763 - Culture and recreation - 6,314 Total expenditures 520,575 6,314 Revenue over (under) expenditures 19,245 52,689 Other financing sources (uses): Transfers in - - Transfers out - - Sale of capital assets - - Total other financing sources (uses)0 0 Net change in fund balance 19,245 52,689 Fund balance - January 1 585,242 327,574 Fund balance - December 31 $604,487 $380,263 144 Statement 34 Capital Improvement Development Fund 420 Infrastructure Replacement Fund 430 Capital Equipment Replacement General Gov't Fund 431 Total Nonmajor Capital Project Funds $ - $50,403$50,403$664,125 67,003 - - 93,907 17,66623,80049,61096,576 9,40013,30026,00051,800 82,997 - - 82,997 177,06687,503126,013989,405 - - 8,1348,134 - 5,406 - 514,218 - - 24,38824,388 - - 790,255790,255 - - 173,156184,919 - - - 6,314 05,406995,9331,528,228 177,06682,097(869,920)(538,823) 300,00050,00024,388374,388 (1,034,726) - - (1,034,726) - - 30,45030,450 (734,726)50,00054,838(629,888) (557,660)132,097(815,082)(1,168,711) 1,423,9691,419,1823,968,5227,724,489 $866,309$1,551,279$3,153,440$6,555,778 145                                                 ‐ This page intentionally left blank ‐  146 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. 147 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 35 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals for December 31, 2018 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Assets:20192018 Current assets: Cash and cash equivalents$613,682$614,106 $ - $91,338 $ - $1,319,126 $723,738 Receivables: Accounts (net of allowance for uncollectables)794,489 - - - - 794,489725,772 Interest - 1,100 - 200 - 1,300 3,700 Interfund receivable 80,632 - - - (80,632) - - Inventory - at cost 9,220 - - - - 9,220 8,283 Total current assets1,498,023 615,206 091,538 (80,632)2,124,135 1,461,493 Noncurrent assets: Capital assets: Land45,223 - - - - 45,22345,223 Construction in process - - 34,365 - - 34,36525,722 Buildings 1,305,172 - - - - 1,305,172 1,305,172 Equipment 676,915 - - - - 676,915572,291 Infrastructure 9,963,688 - - - - 9,963,688 9,963,688 Total capital assets 11,990,998 034,365 0 012,025,363 11,912,096 Less: accumulated depreciation (6,137,067) - - - - (6,137,067)(5,774,090) Total capital assets (net of accumulated depreciation)5,853,931 - 34,365 - - 5,888,296 6,138,006 Total noncurrent assets 5,853,931 034,365 0 05,888,296 6,138,006 Total assets 7,351,954 615,206 34,36591,538 (80,632)8,012,431 7,599,499 Liabilities : Current liabilities: Accounts payable21,476 - 2,140 - - 23,616 89,809 Accrued salaries and withholdings payable15,003 - - - - 15,00316,613 Due to other governmental units127,479 - - - - 127,479137,331 Interfund payable - - 80,632 - (80,632) - 66,000 Accrued interest payable - - - 3,676 - 3,6764,114 Deposits 200 - - - - 2002,700 Bonds payable - current - - - 80,000 - 80,000 120,000 Total current liabilities 164,158 082,77283,676 (80,632)249,974 436,567 Noncurrent liabilities: Bonds payable - noncurrent - - - 330,000 - 330,000 410,000 Total noncurrent liabilities 0 0 0330,000 0330,000 410,000 Total liabilities 164,158 082,772413,676 (80,632)579,974 846,567 Net position: Net investments in capital assets5,853,931 - 34,365(410,000) - 5,478,296 5,608,006 Restricted - - - 88,894 - 88,894 132,598 Unrestricted1,333,865 615,206 (82,772)(1,032) - 1,865,267 1,012,328 Total net position$7,187,796 $615,206 ($48,407)($322,138)$0 $7,432,457 $6,752,932 Total 148 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Operating revenues:20192018 Charges for services: Customer services$52,308 $ - $ - $ - $ - $52,308 $86,627 Penalties 154,075 - - - - 154,075134,265 Charges for sales: Water 3,145,915 - - - - 3,145,915 3,011,967 Meter 4,22174,681 - - - 78,90292,194 Total operating revenues 3,356,519 74,681 0 0 03,431,200 3,325,053 Operating expenses: Cost of sales1,584,203 - - - - 1,584,203 1,628,229 Distribution 715,668 - 20,254 - - 735,922770,223 Administration43,928 - - - - 43,928 41,312 Depreciation296,023 - - - - 296,023290,992 Total operating expenses 2,639,822 0 20,254 0 0 2,660,076 2,730,756 Net income (loss) from operations 716,697 74,681 (20,254)0 0 771,124 594,297 Nonoperating revenues (expenses): Investment income: Interest and dividends - 9,100 - 1,700 - 10,800 18,700 Change in fair value - 5,000 - 900 - 5,900(4,600) Miscellaneous revenues (expenses)296 - 315 - - 611(613) Interest and fiscal charges - - - (12,410) - (12,410)(14,872) Total nonoperating revenues (expenses)296 14,100 315 (9,810)0 4,901 (1,385) Net income (loss) before transfers 716,993 88,781 (19,939)(9,810)0 776,025 592,912 Transfers in 14,12930,000 - 78,000 (122,129) - 891 Transfers out(204,500)(14,129) - - 122,129(96,500)(96,400) Total transfers(190,371)15,871 0 78,000 0 (96,500)(95,509) Change in net position526,622 104,652 (19,939)68,190 0 679,525 497,403 Net position - January 16,661,174 510,554 (28,468)(390,328) - 6,752,932 6,255,529 Net position - December 31$7,187,796 $615,206 ($48,407)($322,138)$0$7,432,457 $6,752,932 Total 149 CITY OF COLUMBIA HEIGHTS, MINNESOTA WATER UTILITY FUND Statement 37 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from customers $3,361,546 $3,277,562 Cash paid to suppliers for goods and services (2,002,128)(1,977,481) Cash payments to employees for services(441,469)(404,915) Net cash flows from operating activities917,949895,166 Cash flows from noncapital financing activities: Transfers in - 891 Transfers out (96,500)(96,400) Interfund payable (repaid to) advanced by other funds (66,000)(65,000) Net cash flows from noncapital financing activities (162,500)(160,509) Cash flows from capital and related financing activities: Acquisition of capital assets (46,313)(50,843) Principal payments - bonds (120,000)(115,000) Interest and fiscal charges (12,848)(15,735) Net cash flows from capital and related financing activities (179,161)(181,578) Cash flows from investing activities: Investment income: Interest and dividends 13,200 17,600 Change in fair value 5,900 (4,600) Net cash flows from investing activities 19,100 13,000 Net increase (decrease) in cash and cash equivalents 595,388 566,079 Cash and cash equivalents - January 1 723,738 157,659 Cash and cash equivalents - December 31 $1,319,126 $723,738 Reconciliation of operating income to net cash flows from operating activities: Operating income $771,124 $594,297 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 296,023 290,992 Miscellaneous revenues 611 (613) Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in accounts receivable (68,717)(54,363) (Increase) decrease in inventory, at cost (937)6,872 Increase (decrease) in accounts payable (66,193)76,531 Increase (decrease) in accrued salaries and withholdings payable (1,610)(412) Increase (decrease) in contracts payable -retained percentage - (38,436) Increase (decrease) in due to other governmental units (9,852)17,598 Increase (decrease) in deposits payable (2,500)2,700 Total adjustments 146,825 300,869 Net cash flows from operating activities $917,949 $895,166 150 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 38 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals for December 31, 2018 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Assets:2019 2018 Current assets: Cash and cash equivalents $151,809$392,705$627,663$59,049$1,231,226 $998,814 Receivables: Accounts (net of allowance for uncollectibles)547,623 - 11,123 - 558,746 518,238 Interest - 700 1,100 - 1,800 2,800 Prepayments 100,538 - - - 100,53893,435 Total current assets 799,970 393,405639,886 59,0491,892,310 1,613,287 Noncurrent assets: Capital assets: Land 36,586 - - - 36,58636,586 Construction in progess - - 24,553 - 24,55317,981 Buildings 403,659 - - - 403,659403,659 Equipment 1,097,814 - - - 1,097,814 1,000,469 Infrastructure 6,677,171 - - - 6,677,1716,677,171 Total capital assets 8,215,230 024,553 08,239,7838,135,866 Less: accumulated depreciation (5,280,647) - - - (5,280,647)(5,054,050) Net capital assets 2,934,583 024,553 02,959,136 3,081,816 Total noncurrent assets 2,934,583 0 24,553 0 2,959,136 3,081,816 Total assets 3,734,553393,405664,43959,0494,851,446 4,695,103 Liabilities: Current liabilities: Accounts payable 7,665 - 29,992 - 37,65715,695 Accrued salaries and withholdings payable 12,624 - 516 - 13,14010,075 Contracts payable - retained percentage - - 10,132 - 10,132 - Accrued interest payable - - - 2,531 2,531 3,005 Bonds payable - current - - - 53,40053,40053,400 Total current liabilities 20,289 040,64055,931116,860 82,175 Noncurrent liabilities: Bonds payable - noncurrent - - - 232,200 232,200 285,600 Total liabilities 20,289 040,640288,131349,060 367,775 Net position: Net investment in capital assets 2,934,583 - - (285,600)2,648,9832,742,816 Restricted - - - 59,334 59,334 60,056 Unrestricted 779,681393,405623,799(2,816)1,794,0691,524,456 Total net position $3,714,264 $393,405$623,799($229,082)$4,502,386 $4,327,328 Total 151 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, 2019 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Operating revenues:20192018 Charges for services: Sewer service charges $2,074,292 $ - $ - $ - $ - $2,074,292 $2,023,524 Other - - - - - - 2,485 Total operating revenues 2,074,292 00002,074,292 $2,026,009 Operating expenses: Disposal1,121,217 - - - - 1,121,217 1,101,389 Collection 489,058 - 160,287 - - 649,345496,617 Administration 43,940 - - - - 43,940 41,315 Depreciation166,925 - - - - 166,925171,180 Total operating expenses 1,821,140 0160,287 0 01,981,427 1,810,501 Net income (loss) from operations 253,152 0(160,287)0 092,865215,508 Nonoperating revenues (expenses): Investment income Interest and dividends - 6,1019,600 100 - 15,80114,500 Change in fair value - 3,400 5,300 100 - 8,800 (3,700) Interest and fiscal charges - - - (6,464) - (6,464)(7,613) Miscellaneous268 - - - - 268 686 Total nonoperating revenues (expenses)268 9,501 14,900 (6,264)0 18,405 3,873 Net income (loss) before transfers and capital contributions 253,420 9,501 (145,387)(6,264)0 111,270 219,381 Transfers and capital contributions: Capital contribution - intergovernmental revenue - - 160,288 - - 160,288 - Transfers in14,12930,000 - 79,000 (123,129) - - Transfers out(205,500)(14,129) - - 123,129(96,500)(96,399) Total transfers and capital contributions (191,371)15,871 160,288 79,000 0 63,788 (96,399) Change in net position 62,04925,37214,90172,736 - 175,058 122,982 Net position - January 1 3,652,215 368,033608,898 (301,818) - 4,327,328 4,204,346 Net position - December 31 $3,714,264 $393,405$623,799 ($229,082)$0$4,502,386 $4,327,328 Total With Comparative Totals For The Year Ended December 31, 2018 152 CITY OF COLUMBIA HEIGHTS, MINNESOTA SEWER UTILITY FUND Statement 40 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from customers$2,026,949 $2,019,713 Cash paid to suppliers for goods and services (1,529,035)(1,406,609) Cash payments to employees for services(250,308)(245,574) Net cash flows from operating activities247,606367,530 Cash flows from noncapital financing activities: Transfers out (96,500)(96,399) Cash flows from capital and related financing activities: Acquisition of capital assets (44,245)(38,207) Intergovernmental revenue 160,288 - Principal payments - bonds (53,400)(53,288) Interest and fiscal charges (6,938)(8,085) Net cash flows from capital and related financing activities 55,705 (99,580) Cash flows from investing activities: Investment income: Interest and dividends 16,801 13,800 Change in fair value 8,800 (3,700) Net cash flows from investing activities 25,601 10,100 Net increase (decrease) in cash and cash equivalents 232,412 181,651 Cash and cash equivalents - January 1 998,814 817,163 Cash and cash equivalents - December 31 $1,231,226 $998,814 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$92,865 $215,508 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense166,925171,180 Miscellaneous revenues 268686 Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in accounts receivable (40,508)(5,329) (Increase) decrease in prepayments (7,103)(1,653) Increase (decrease) in accounts payable 21,962 (11,138) Increase (decrease) in accrued salaries and withholdings payable 3,065 2,010 Increase (decrease) in contracts payable -retained percentage 10,132 (3,734) Total adjustments 154,741 152,022 Net cash flows from operating activities $247,606 $367,530 153 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 41 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals for December 31, 2018 20192018 Assets: Current assets: Cash and cash equivalents$1,639,518$1,443,380 Receivables: Accounts (net of allowance for uncollectibles)575,074550,349 Interest 2,7003,900 Due from other governmental units23,9056,433 Total current assets2,241,1972,004,062 Noncurrent assets: Capital assets: Buildings 56,00056,000 Equipment 112,893112,893 Total capital assets168,893168,893 Less: accumulated depreciation(137,018)(134,518) Total capital assets (net of accumulated depreciation)31,87534,375 Total noncurrent assets31,875 34,375 Total assets2,273,0722,038,437 Liabilities: Current liabilities: Accounts payable138,773143,810 Accrued salaries and withholdings payable4,2744,112 Total current liabilities143,047 147,922 Net position: Net investments in capital assets31,87534,375 Unrestricted 2,098,1501,856,140 Total net position$2,130,025 $1,890,515 154 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Operating revenues: Refuse service charges$2,068,509$1,986,709 Operating expenses: Collection and disposal1,659,5981,708,596 Administration 77,47483,687 Recycling 110,324117,384 Hazardous waste10,32110,621 Depreciation 2,5002,500 Miscellaneous 21,87219,610 Total operating expenses1,882,089 1,942,398 Net income (loss) from operations186,420 44,311 Nonoperating revenues: Investment income Interest and dividends22,30019,600 Change in fair value12,400(4,900) Intergovernmental102,190112,679 Total nonoperating revenues136,890 127,379 Net income before transfers323,310 171,690 Transfers out (83,800)(83,622) Total transfers(83,800)(83,622) Change in net position239,510 88,068 Net position - January 11,890,515 1,802,447 Net position - December 31$2,130,025$1,890,515 155 CITY OF COLUMBIA HEIGHTS, MINNESOTA REFUSE UTILITY FUND Statement 43 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2019 With Comparative Totals for Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from customers$2,026,312$1,996,009 Cash paid to suppliers for goods and services(1,770,442)(1,816,327) Cash payments to employees for services (114,022)(116,419) Net cash flows from operating activities 141,848 63,263 Cash flows from noncapital financing activities: Transfers out (83,800)(83,622) Intergovernmental 102,190 112,679 Net cash flows from noncapital financing activities 18,390 29,057 Cash flows from investing activities: Investment income: Interest and dividends 23,500 19,700 Change in fair value 12,400 (4,900) Net cash flows from investing activities 35,900 14,800 Net increase (decrease) in cash and cash equivalents 196,138 107,120 Cash and cash equivalents - January 1 1,443,380 1,336,260 Cash and cash equivalents - December 31 $1,639,518 $1,443,380 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income $186,420 $44,311 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 2,500 2,500 Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in accounts receivable (24,725)(22,079) (Increase) decrease in due from other governmental units (17,472)31,379 Increase (decrease) in accounts payable (5,037)6,422 Increase (decrease) in accrued salaries and withholdings payable 162 730 Total adjustments (44,572)18,952 Net cash flows from operating activities $141,848 $63,263 156 CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND Statement 44 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals for December 31, 2018 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations Assets:20192018 Current assets: Cash and cash equivalents $433,106$10,101$ - $64,094$ - $507,301$383,668 Receivables: Accounts (net of allowance for uncollectibles)126,419 - - - - 126,419116,564 Interest 800 - - 100 - 9001,500 Due from other governmental units - - 33,745 - 33,745 - Interfund receivable 43,003 - - - (43,003) - - Total current assets 603,32810,10133,74564,194(43,003)668,365501,732 Noncurrent assets: Capital assets: Land 260,690 - - - - 260,690260,690 Equipment 398,758 - - - - 398,758398,758 Infrastructure 2,667,144 - - - - 2,667,1442,667,144 Construction in process - - - - - - 40,986 Total capital assets 3,326,592 0 0 0 03,326,5923,367,578 Less: accumulated depreciation (1,348,687) - - - - (1,348,687)(1,232,214) Net capital assets 1,977,905 0 0 0 01,977,9052,135,364 Total noncurrent assets 1,977,905 0 0 0 01,977,9052,135,364 Total assets 2,581,23310,10133,74564,194(43,003)2,646,2702,637,096 Liabilities: Current liabilities: Accounts payable 434 - 31,491 - - 31,9251,244 Accrued salaries and withholdings payable 4,083 - - - - 4,0833,272 Contracts payable - retained percentage - - 19,051 - 19,051 - Interfund payable - - 43,003 - (43,003) - 17,000 Accrued interest payable - - - 2,678 - 2,6782,435 Bonds payable - current - - - 56,600 - 56,60056,600 Total current liabilities 4,517 093,54559,278(43,003)114,33780,551 Noncurrent liabilities: Bonds payable - noncurrent - - - 237,800 - 237,800294,400 Total noncurrent liabilities 0 0 0237,800 0237,800294,400 Total liabilities 4,517 093,545297,078(43,003)352,137374,951 Net position: Net investment in capital assets 1,977,905 - - (294,400) - 1,683,5051,784,364 Restricted - - - 63,131 - 63,13163,969 Unrestricted 598,81110,101(59,800)(1,615) - 547,497413,812 Total net position $2,576,716$10,101($59,800)($232,884)$0$2,294,133$2,262,145 Total 157 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Operating Account Capital Equipment Replacement Account Capital Construction Account Debt Service Account Intrafund Eliminations 20192018 Operating revenues: Storm sewer service charges $480,515$ - $ - $ - $ - $480,515$458,107 Operating expenses: Collection 232,222 - 453,041 - - 685,263387,769 Administration 1,128 - - - - 1,1282,419 Depreciation 116,472 - - - - 116,472113,818 Total operating expenses349,822 0453,041 0 0802,863504,006 Net income (loss) from operations 130,693 0(453,041)0 0(322,348)(45,899) Nonoperating revenues (expenses): Investment income Interest and dividends 6,700 101 - 600 - 7,4017,800 Change in fair value 3,700 - - 400 - 4,100(2,000) Interest and fiscal charges - - - (7,770) - (7,770)(7,664) Miscellaneous revenue 352 - - - - 352466 Total nonoperating revenues (expenses)10,752 101 0 (6,770)0 4,083 (1,398) Net income (loss) before transfers and capital contributions 141,445 101 (453,041)(6,770)0 (318,265)(47,297) Transfers and capital contributions: Capital contribution - intergovernmental revenue - - 350,253 - - 350,253 - Transfers in - 10,000 - 63,000 (73,000) - - Transfers out(73,000) - - - 73,000 - - Total transfers and capital contributions(73,000)10,000 350,253 63,000 0 350,253 0 Change in net position 68,445 10,101 (102,788)56,230 0 31,988 (47,297) Net position - January 1 2,508,271 0 42,988 (289,114) - 2,262,145 2,309,442 Net position - December 31 $2,576,716 $10,101($59,800)($232,884)$0$2,294,133 $2,262,145 Total 158 CITY OF COLUMBIA HEIGHTS, MINNESOTA STORM SEWER UTILITY FUND Statement 46 SUBCOMBINING SCHEDULE OF CASH FLOWS For Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from customers$437,267 $459,888 Cash paid to suppliers for goods and services(490,611)(271,561) Cash payments to employees for services(145,237)(122,554) Net cash flows from operating activities(198,581)65,773 Cash flows from noncapital financing activities: Intergovernmental - - Cash flows from capital and related financing activities: Acquisition of capital assets40,987(52,185) Intergovernmental revenue350,253 - Principal payments - bonds(73,600)(73,712) Interest and fiscal charges(7,527)(7,690) Net cash flows from capital and related financing activities310,113 (133,587) Cash flows from investing activities: Investment income: Interest and dividends 8,001 7,500 Change in fair value 4,100 (2,000) Net cash flows from investing activities 12,101 5,500 Net increase (decrease) in cash and cash equivalents 123,633 (62,314) Cash and cash equivalents - January 1 383,668 445,982 Cash and cash equivalents - December 31 $507,301 $383,668 Reconciliation of operating income to net cash flows from operating activities: Operating income ($322,348)($45,899) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 116,472 113,818 Miscellaneous revenue 352 466 Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in accounts receivable (9,855)1,315 (Increase) decrease in due from other governmental units (33,745) - Increase (decrease) in accounts payable 30,681 (3,112) Increase (decrease) in accrued salaries and withholdings payable 811 (815) Increase (decrease) compensated absences payable 19,051 - Total adjustments 123,767 111,672 Net cash flows from operating activities ($198,581)$65,773 159                                                 ‐ This page intentionally left blank ‐  160 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 47 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals for December 31, 2018 OperatingDebt Service AccountAccount20192018 Assets: Current assets: Cash and cash equivalents$1,472,267$303,937$1,776,204$1,773,013 Receivables: Accounts109 - 1093,100 Interest2,1002002,3003,100 Due from other governmental units3,133 - 3,1332,348 Inventory - at cost 2,341,164 - 2,341,1642,168,304 Total current assets3,818,773304,1374,122,9103,946,765 Noncurrent assets: Capital assets: Land2,006,714 - 2,006,7142,006,714 Construction in progress9,711 - 9,711 - Buildings3,909,062 - 3,909,0623,915,062 Equipment431,020 - 431,020431,020 Total capital assets 6,356,507 06,356,5076,352,796 Less: Accumulated depreciation (1,839,382) - (1,839,382)(1,705,892) Net capital assets 4,517,125 04,517,1254,646,904 Total noncurrent assets 4,517,125 04,517,1254,646,904 Total assets 8,335,898304,1378,640,0358,593,669 Liabilities: Current liabilities: Accounts payable 355,742 - 355,742398,821 Accrued salaries and withholdings payable 50,426 - 50,426 46,558 Due to other governmental units 102,581 - 102,581 97,343 Accrued interest payable - 26,765 26,765 24,649 Bonds payable - current - 255,000255,000245,000 Total current liabilities 508,749 281,765 790,514 812,371 Noncurrent liabilities: Bonds payable - noncurrent - 2,630,6822,630,6822,896,429 Total liabilities 508,7492,912,4473,421,1963,708,800 Net position: Net investment in capital assets 4,517,125(2,885,682)1,631,4431,505,475 Restricted for debt service - 305,902305,902302,767 Unrestricted3,310,024(28,530)3,281,4943,076,627 Total net position$7,827,149($2,608,310)$5,218,839$4,884,869 Total 161 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 TopHeights Top ValuValu IILiquor Operating revenues: Charges for sales: Liquor$1,678,534$1,117,188$678,883 Beer1,723,6431,388,838551,637 Wine596,467470,67785,783 Other254,233196,897172,098 Total operating revenues4,252,877 3,173,600 1,488,401 Operating expenses: Cost of goods sold3,193,5582,374,6601,117,803 Operating expense757,972610,371217,225 Depreciation77,08060,1602,249 Total operating expenses4,028,6103,045,191 1,337,277 Net income from operations$224,267$128,409$151,124 Nonoperating revenues (expenses): Investment income: Interest and dividends Change in fair value Intergovernmental Interest and fiscal charges Miscellaneous expense Total nonoperating revenues (expenses) Net income (loss) before transfers Transfers in Transfers out Total transfers Change in net position Net position - January 1 Net position - December 31 Operating Accounts 162 Statement 48 Total Debt Operating Service Intrafund Accounts Account Eliminations 2019 2018 $3,474,605 $ - $ - $3,474,605 $3,242,921 3,664,118 - - 3,664,118 3,601,845 1,152,927 - - 1,152,927 1,141,536 623,228 - - 623,228 602,274 8,914,878 0 0 8,914,878 8,588,576 6,686,021 - - 6,686,021 6,448,223 1,585,568 - - 1,585,568 1,567,180 139,489 - - 139,489 140,854 8,411,078 0 0 8,411,078 8,156,257 503,800 0 0 503,800 432,319 17,900 1,900 - 19,800 15,600 10,000 1,000 - 11,000 (3,900) 4,030 - - 4,030 5,694 - (59,260) - (59,260)(60,644) - - - - (360) 31,930 (56,360)0 (24,430)(43,610) 535,730 (56,360)0 479,370 388,709 - 304,000 (304,000) - - (449,400) - 304,000 (145,400)(146,944) (449,400)304,000 0 (145,400)(146,944) 86,330 247,640 0 333,970 241,765 7,740,819 (2,855,950)0 4,884,869 4,643,104 $7,827,149 ($2,608,310)$0 $5,218,839 $4,884,869 Total 163 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 49 SUBCOMBINING SCHEDULE OF CASH FLOWS Page 1 of 2 For Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from customers$8,917,084$8,588,168 Cash paid to suppliers for goods and services (7,334,657)(6,637,569) Cash payments to employees for services(1,143,765)(1,130,234) Net cash flows from operating activities438,662820,365 Cash flows from noncapital financing activities Transfers out (145,400)(146,944) Intergovernmental 4,0305,694 Net cash flows from noncapital financing activities (141,370)(141,250) Cash flows from capital and related financing activities: Acquisition of capital assets (12,810) - Principal payments - bonds(245,000)(185,000) Interest and fiscal charges - including capitalized interest (67,891)(77,244) Net cash flows from capital and related financing activities (325,701)(262,244) Cash flows from investing activities: Investment income: Interest and dividends 20,60013,800 Change in fair value 11,000(3,900) Net cash flows from investing activities 31,600 9,900 Net increase (decrease) in cash and cash equivalents 3,191 426,771 Cash and cash equivalents - January 1 1,773,0131,346,242 Cash and cash equivalents - December 31 $1,776,204$1,773,013 164 CITY OF COLUMBIA HEIGHTS, MINNESOTA LIQUOR FUND Statement 49 SUBCOMBINING SCHEDULE OF CASH FLOWS Page 2 of 2 For Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Reconciliation of operating income to net cash flows from operating activities: Operating income $503,800$432,319 Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 139,489140,854 Miscellaneous expense - (360) Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in accounts receivable 2,991 - (Increase) decrease in due from other governmental units(785)(408) (Increase) decrease in inventory, at cost(172,860)185,941 Increase (decrease) in accounts payable(43,079)58,203 Increase (decrease) in accrued salaries and withholdings payable 3,868 5,868 Increase (decrease) in due to other governmental units 5,238 (2,052) Total adjustments (65,138)388,046 Net cash flows from operating activities $438,662$820,365 165                                                 ‐ This page intentionally left blank ‐  166 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing on a cost reimbursement basis of goods or services provided by one department or agency to other departments or agencies within the City. Municipal Service Center Fund Central Garage - used to account for the costs of operating a maintenance facility for automotive equipment used by other City departments. Such costs are billed to other departments at actual cost plus a fixed overhead factor. The automotive equipment itself is acquired by the various user departments, which are responsible for financing replacement vehicles as necessary. Building Maintenance – used to account for the costs of staff charged with maintaining City facilities. All costs are recorded in this fund and finance by transfers from user departments. Information Systems Fund – used to account for the costs associated with information systems within the City. All costs are recorded in the fund and are financed by transfers from user departments. Risk Management 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. Employee Benefits Fund – used to account for long-term obligations for compensated absences, pensions, and other post-employment benefits earned by employees’ services. 167 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 50 COMBINING STATEMENT OF NET POSITION December 31, 2019 Service Center Information Systems Risk Management Employee Benefits Fund Total Internal Service Funds Assets: Current assets: Cash and cash equivalents $997,840$615,271$1,248,934$1,123,708$3,985,753 Due from other governmental units 386 - - - 386 Interest receivable 2,0001,200 2,300 - 5,500 Prepayments - 15,193 63,417 - 78,610 Inventory - at cost 40,399 750 - - 41,149 Total current assets 1,040,625632,4141,314,6511,123,7084,111,398 Noncurrent assets: Capital assets: Land 15,779 - - - 15,779 Buildings 1,978,957 - - - 1,978,957 Equipment 273,767302,583 - - 576,350 Total capital assets 2,268,503302,583 0 02,571,086 Less: accumulated depreciation (1,262,243)(268,128) - - (1,530,371) Net capital assets 1,006,26034,455 0 01,040,715 Total noncurrent assets 1,006,26034,455 0 01,040,715 Total assets 2,046,885 666,869 1,314,651 1,123,708 5,152,113 Deferred outflows of resources: Related to pensions and OPEB - - - 3,719,131 3,719,131 Liabilities: Current liabilities: Accounts payable 32,33421,446 2,000 - 55,780 Accrued salaries and withholdings payable 18,56113,491 - - 32,052 Unearned revenue 9,162 - - - 9,162 Compensated absences payable - current - - - 110,900110,900 Total current liabilities 60,057 34,937 2,000 110,900 207,894 Noncurrent liabilities: Compensated absences payable - noncurrent - - - 1,012,8081,012,808 Other postemployment benefits payable - - - 1,420,6351,420,635 Net pension liability - - - 7,958,0967,958,096 Total noncurrent liabilities 0 0 010,391,539 10,391,539 Total liabilities 60,057 34,937 2,000 10,502,439 10,599,433 Deferred inflows of resources: Related to pensions and OPEB - - - 6,006,578 6,006,578 Net position: Net investments in capital assets 1,006,26034,455 - - 1,040,715 Unrestricted 980,568597,4771,312,651(11,666,178)(8,775,482) Total net position $1,986,828$631,932$1,312,651($11,666,178)($7,734,767) 168 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, 2019 Municipal Service Center Information Systems Risk Management Employee Benefits Fund Total Internal Service Funds Operating revenues: Charges for services: Services to departments$407,331$385,000$570,894$2,057,546$3,420,771 Use of space 351,227 - - - 351,227 Recovery of damages - - 18,330 - 18,330 Charges for sales: Sales of motor fuel 118,400 - - - 118,400 Total operating revenues 876,958 385,000 589,224 2,057,546 3,908,728 Operating expenses: Cost of services and space 790,067387,210581,2962,083,9643,842,537 Depreciation 67,51710,085 - - 77,602 Total operating expenses 857,584 397,295 581,296 2,083,964 3,920,139 Net income (loss) from operations 19,374(12,295)7,928(26,418)(11,411) Nonoperating revenues (expenses): Investment income Interest and dividends 15,600 9,60019,600 - 44,800 Change in fair value 8,600 5,30010,900 - 24,800 Intergovernmental - - - 51,40351,403 Total nonoperating revenues (expenses)24,200 14,900 30,500 51,403 121,003 Net income (loss) before transfers 43,574 2,605 38,428 24,985 109,592 Transfers out - (24,388) - - (24,388) Total transfers 0 (24,388)0 0 (24,388) Change in net position 43,574 (21,783)38,428 24,985 85,204 Net position - January 1 1,943,254653,7151,274,223(11,691,163)(7,819,971) Net position - December 31 $1,986,828 $631,932 $1,312,651 ($11,666,178)($7,734,767) 169 CITY OF COLUMBIA HEIGHTS, MINNESOTA INTERNAL SERVICE FUNDS Statement 52 COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 2019 Municipal Service Center Information Systems Risk Management Employee Benefits Fund Total Internal Service Funds Cash flows from operating activities: Cash received from interfund goods and services provided $876,958 $385,000 $570,894 $2,248,296 $4,081,148 Cash received for damages - - 18,330 - 18,330 Cash paid to suppliers for goods and services (356,170)(60,234)(580,350)(1,848,642)(2,845,396) Cash payments to employees for services (425,101)(314,204) - (716,574)(1,455,879) Net cash flows provided by (used in) operating activities 95,687 10,562 8,874 (316,920)(201,797) Cash flows from noncapital financing activities: Transfers out - (24,388) - - (24,388) Intergovernmental - - - 51,403 51,403 Increases in other postemployment benefits payable - - - 36,047 36,047 Net cash flows provided by (used in) noncapital financing activities 0 (24,388)0 87,450 63,062 Cash flows from capital and related financing activities: Acquisition of capital assets (23,257) - - - (23,257) Cash flows from investing activities: Investment income: Interest and dividends 16,800 10,500 21,100 - 48,400 Change in fair value 8,600 5,30010,900 - 24,800 Net cash flows provided by (used in) investing activities 25,400 15,800 32,000 0 73,200 Net increase (decrease) in cash and cash equivalents 97,830 1,974 40,874 (229,470)(88,792) Cash and cash equivalents - January 1 900,010 613,297 1,208,060 1,353,178 4,074,545 Cash and cash equivalents - December 31 $997,840 $615,271 $1,248,934 $1,123,708 $3,985,753 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$19,374 ($12,295)$7,928 ($26,418)($11,411) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 67,517 10,085 - - 77,602 Changes in assets and liabilities: (Increase) decrease in prepayments - (5,228)(1,054) - (6,282) (Increase) decrease in inventory, at cost 11,393 - - 11,393 (Increase) decrease in due from other governmental units 1,963 - - - 1,963 (Increase) decrease in deferred pension outflows - (750) - 2,360,646 2,359,896 Increase (decrease) in accounts payable (7,024)17,788 2,000 - 12,764 Increase (decrease) in accrued salaries and withholdings payable2,198962 - - 3,160 Increase (decrease) in deferred revenue 266 - - - 266 Increase (decrease) in compensated absences - - - (229,470)(229,470) Increase (decrease) in net pension liability - - - (101,465)(101,465) Increase (decrease) in deferred inflows of resources - - - (2,320,213)(2,320,213) Total adjustments 76,313 22,857 946 (290,502)(190,386) Net cash flows provided by (used in) operating activities $95,687 $10,562$8,874 ($316,920)($201,797) 170 CITY OF COLUMBIA HEIGHTS, MINNESOTA MUNICIPAL SERVICE CENTER Statement 53 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals For December 31, 2018 CentralCapitalBuilding GarageEquipmentMaintenance OperatingReplacementOperating AccountAccountAccount20192018 Assets: Current assets: Cash and cash equivalents $880,383$21,374$96,083$997,840$900,010 Due from other governmental units 386 - - 3862,349 Interest receivable 1,700 100 200 2,0003,200 Inventory - at cost 40,399 - - 40,39951,792 Total current assets922,86821,47496,2831,040,625957,351 Noncurrent assets: Capital assets: Land15,779 - - 15,77915,779 Construction in progress - - - - 31,677 Buildings1,978,957 - - 1,978,9571,978,957 Equipment273,767 - - 273,767218,834 Total capital assets 2,268,503 0 02,268,5032,245,247 Less: Accumulated depreciation (1,262,243) - - (1,262,243)(1,194,727) Net capital assets 1,006,260 0 01,006,2601,050,520 Total noncurrent assets 1,006,260 0 01,006,2601,050,520 Total assets 1,929,12821,47496,2832,046,8852,007,871 Liabilities: Current liabilities: Accounts payable 25,031 - 7,30332,33439,358 Accrued salaries and withholdings payable 10,031 - 8,53018,56116,363 Unearned revenue 9,162 - - 9,1628,896 Total current liabilities 44,224 0 15,833 60,057 64,617 Net position: Net investments in capital assets 1,006,260 - - 1,006,2601,050,520 Unrestricted878,64421,47480,450980,568892,734 Total net position$1,884,904$21,474$80,450$1,986,828$1,943,254 Total 171 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 CentralCapitalBuilding GarageEquipmentMaintenance OperatingReplacementOperatingIntrafund AccountAccountAccountEliminations20192018 Operating revenues: Charges for services: Services to departments$180,331$ - $227,000$ - $407,331$374,334 Use of space351,227 - - - 351,227332,351 Charges for sales: Sales of motor fuel118,400 - - - 118,400127,679 Total operating revenues649,958 0 227,000 0 876,958834,364 Operating expenses: Cost of services and space587,923 - 202,144 - 790,067749,810 Depreciation 67,517 - - - 67,51765,888 Total operating expenses 655,440 0 202,144 0 857,584815,698 Net income (loss) from operations (5,482) - 24,856 - 19,37418,666 Nonoperating revenues: Investment income: Interest and dividends 13,900 4001,300 - 15,60015,600 Change in fair value 7,700 200 700 - 8,600(3,900) Sale of capital assets - - - - - 2,000 Total nonoperating revenues 21,600 6002,000 024,20013,700 Net income (loss) before transfers 16,118 60026,856 043,574 32,366 Transfers in 17,3844,000 - (21,384) - 4,300 Transfers out (4,000)(17,384) - 21,384 - (88,917) Total transfers 13,384 (13,384)0 0 0 (84,617) Change in net position 29,502(12,784)26,856 - 43,574 (52,251) Net position - January 1 1,855,40234,25853,594 01,943,254 1,995,505 Net position - December 31 $1,884,904 $21,474 $80,450 $0 $1,986,828 $1,943,254 Total 172 CITY OF COLUMBIA HEIGHTS, MINNESOTA MUNICIPAL SERVICE CENTER Statement 55 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from interfund goods & services provided$876,958$834,364 Cash paid to suppliers for goods and services (356,170)(330,369) Cash payments to employees for services (425,101)(407,120) Net cash flows from operating activities 95,687 96,875 Cash flows from noncapital financing activities: Transfers in - 4,300 Transfers out - (88,917) Net cash flows from noncapital financing activities: - (84,617) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (23,257)(37,877) Proceeds from the sale of assets - 2,000 Net cash flows from capital and related financing activities (23,257)(35,877) Cash flows from investing activities: Investment income: Interest and dividends 16,800 14,600 Change in fair value 8,600 (3,900) Net cash flows from investing activities 25,400 10,700 Net increase (decrease) in cash and cash equivalents 97,830 (12,919) Cash and cash equivalents - January 1 900,010 912,929 Cash and cash equivalents - December 31 $997,840 $900,010 Reconciliation of operating income to net cash flows from operating activities: Operating income (loss) $19,374 $18,666 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 67,517 65,888 Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in inventory, at cost 11,393 (5,785) (Increase) decrease in due from other governmental units 1,963 (2,349) Increase (decrease) in accounts payable (7,024)18,419 Increase (decrease) in accrued salaries and withholdings payable 2,198 1,777 Increase (decrease) in unearned revenue 266 259 Total adjustments 76,313 78,209 Net cash flows from operating activities $95,687 $96,875 173 CITY OF COLUMBIA HEIGHTS, MINNESOTA INFORMATION SYSTEMS FUND Statement 56 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals For December 31, 2018 Capital Equipment Operating Replacement AccountAccount20192018 Assets: Current assets: Cash and cash equivalents$280,503$334,768$615,271$613,297 Interest receivable5007001,2002,100 Prepayments15,193 - 15,1939,965 Inventory - at cost750 - 750 - Total current assets296,946335,468632,414625,362 Noncurrent assets: Capital assets: Equipment302,583 - 302,583302,583 Less: accumulated depreciation(268,128) - (268,128)(258,043) Net capital assets 34,455 034,45544,540 Total noncurrent assets 34,455 034,45544,540 Total assets331,401335,468666,869669,902 Liabilities: Current liabilities: Accounts payable21,446 - 21,4463,658 Accrued salaries and withholdings payable13,491 - 13,49112,529 Total current liabilities34,937034,93716,187 Net position: Net investments in capital assets34,455 - 34,45544,540 Unrestricted 262,009335,468597,477609,175 Total net position $296,464 $335,468 $631,932 $653,715 Total 174 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, 2019 With Comparative Totals For The Year Ended December 31, 2018 Capital Equipment OperatingReplacement AccountAccount20192018 Operating revenues: Charges for services$385,000$ - $385,000$336,613 Total operating revenues385,0000385,000336,613 Operating expenses: Cost of services 364,44322,767387,210376,998 Depreciation 10,085 - 10,08514,261 Total operating expenses 374,52822,767397,295391,259 Net income (loss) from operations 10,472(22,767)(12,295)(54,646) Nonoperating revenues: Investment income Interest and dividends 4,100 5,500 9,60010,500 Change in fair value 2,300 3,000 5,300(2,600) Sale of capital assets - - - - Total nonoperating revenues 6,400 8,50014,900 7,900 Net income (loss) before transfers 16,872 (14,267)2,605 (46,746) Transfers out - (24,388)(24,388) - Total transfers 0(24,388)(24,388)0 Change in net position 16,872 (38,655)(21,783)(46,746) Net position - January 1 279,592374,123653,715700,461 Net position - December 31 $296,464 $335,468 $631,932 $653,715 Total 175 CITY OF COLUMBIA HEIGHTS, MINNESOTA INFORMATION SYSTEMS FUND Statement 58 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from interfund goods & services provided$385,000$336,613 Cash paid to suppliers for goods and services (60,234)(63,318) Cash payments to employees for services (314,204)(310,355) Net cash flows from operating activities 10,562 (37,060) Cash flows from noncapital financing activities: Transfers out (24,388) - Cash flows from capital and related financing activities: Acquisition of capital assets - (50,423) Cash flows from investing activities: Investment income: Interest and dividends 10,500 10,200 Change in fair value 5,300 (2,600) Net cash flows from investing activities 15,800 7,600 Net increase (decrease) in cash and cash equivalents 1,974 (79,883) Cash and cash equivalents - January 1 613,297 693,180 Cash and cash equivalents - December 31 $615,271$613,297 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)($12,295)($54,646) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 10,085 14,261 Changes in assets, liabilities, deferred outflows and inflows: (Increase) decrease in prepayments (5,228)972 (Increase) decrease in deferred pension outflows (750) - Increase (decrease) in accounts payable 17,788 415 Increase (decrease) in accrued salaries and withholdings payable 962 1,938 Total adjustments 22,857 17,586 Net cash flows from operating activities $10,562($37,060) 176 CITY OF COLUMBIA HEIGHTS, MINNESOTA RISK MANAGEMENT FUND Statement 59 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals For December 31, 2018 20192018 Assets: Current assets: Cash and cash equivalents$1,248,934$1,208,060 Interest receivable2,3003,800 Prepayments 63,41762,363 Total assets1,314,6511,274,223 Liabilities: Current liabilities: Accounts payable 2,000 - Total current liabilities2,000 - Net position: Unrestricted 1,312,6511,274,223 Total net position$1,312,651 $1,274,223 177 CITY OF COLUMBIA HEIGHTS, MINNESOTA RISK MANAGEMENT FUND Statement 60 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Operating revenues: Insurance allocation$570,894$674,547 Recovery of damages18,33037,091 Total operating revenues 589,224 711,638 Operating expenses: Cost of services: Premiums 554,423 656,810 Claims 26,873 29,432 Total operating expenses 581,296 686,242 Net income (loss) from operations 7,928 25,396 Nonoperating revenues: Investment income Interest and dividends 19,600 18,900 Change in fair value 10,900 (4,700) Total nonoperating revenues 30,500 14,200 Net income before transfers 38,428 39,596 Transfers out - (4,300) Change in net position 38,428 35,296 Net position - January 1 1,274,223 1,238,927 Net position - December 31 $1,312,651 $1,274,223 178 CITY OF COLUMBIA HEIGHTS, MINNESOTA RISK MANAGEMENT FUND Statement 61 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 20192018 Cash flows from operating activities: Cash received from interfund services provided$570,894$674,547 Cash received for damages18,33037,091 Cash paid to suppliers for goods and services(580,350)(680,269) Net cash flows from operating activities8,874 31,369 Cash flows from noncapital financing activities: Transfers out - (4,300) Cash flows from investing activities: Investment income: Interest and dividends21,10018,200 Change in fair value 10,900(4,700) Net cash flows from investing activities32,00013,500 Net increase in cash and cash equivalents40,874 40,569 Cash and cash equivalents - January 11,208,0601,167,491 Cash and cash equivalents - December 31$1,248,934 $1,208,060 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$7,928$25,396 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: (Increase) decrease in prepayments(1,054)5,973 Increase (decrease) in accounts payable2,000 - Total adjustments 946 5,973 Net cash flows from operating activities$8,874$31,369 179 CITY OF COLUMBIA HEIGHTS, MINNESOTA EMPLOYEE BENEFITS FUND Statement 62 SUBCOMBINING SCHEDULE OF NET POSITION December 31, 2019 With Comparative Totals For December 31, 2018 CompensatedOther Post AbsencesPensionEmp Benefits AccountAccountAccount20192018 Assets: Current assets: Cash and cash equivalents$1,123,708$ - $ - $1,123,708$1,353,178 Total assets 1,123,708 0 01,123,7081,353,178 Deferred outflows of resources: Related to pensions and OPEB - 3,559,714159,4173,719,1315,920,360 Liabilities: Current liabilities: Compensated absences payable - current 110,900 - - 110,900209,900 Total current liabilities 110,900 0 0110,900209,900 Noncurrent liabilities: Compensated absences payable - noncurrent 1,012,808 - - 1,012,8081,143,278 Other postemployment benefits payable - - 1,420,6351,420,6351,252,872 Related to pensions - 7,958,096 - 7,958,0968,059,561 Total noncurrent liabilities 1,012,808 7,958,096 1,420,635 10,391,539 10,455,711 Total liabilities 1,123,708 7,958,096 1,420,635 10,502,43910,665,611 Deferred inflows of resources: Related to pensions and OPEB - 5,904,848101,7306,006,5788,299,090 Net position: Unrestricted - (10,303,230)(1,362,948)(11,666,178)(11,691,163) Total net position $0 ($10,303,230)($1,362,948)($11,666,178)($11,691,163) Total 180 CITY OF COLUMBIA HEIGHTS, MINNESOTA EMPLOYEE BENEFITS FUND Statement 63 SUBCOMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 CompensatedOther Post AbsencesPensionEmp Benefits AccountAccountAccount20192018 Operating revenues: Charges for services$487,104$1,001,720$50,240$1,539,064$1,006,344 Operating expenses: Cost of services487,104992,09186,2871,565,482860,176 Net income (loss) from operations0 9,629(36,047)(26,418)146,168 Nonoperating revenues: Intergovernmental - 51,403 - 51,40364,186 Change in net position0 61,032(36,047)24,985210,354 Net position - January 1 - (10,364,262)(1,326,901)(11,691,163)(11,901,517) Net position - December 31$0 ($10,303,230)($1,362,948)($11,666,178)($11,691,163) Total 181 CITY OF COLUMBIA HEIGHTS, MINNESOTA EMPLOYEE BENEFITS FUND Statement 64 SUBCOMBINING SCHEDULE OF CASH FLOWS For The Year Ended December 31, 2019 With Comparative Totals For The Year Ended December 31, 2018 CompensatedOther Post AbsencesPensionEmp Benefits AccountAccountAccount20192018 Cash flows from operating activities: Cash received from interfund services provided $487,104 $1,710,952$50,240 $2,248,296 $1,814,326 Cash paid to suppliers for goods and services - (1,762,355)(86,287)(1,848,642)(1,908,522) Cash payments to employees for services (716,574) - - (716,574)55,798 Net cash flows from operating activities (229,470)(51,403)(36,047)(316,920)(38,398) Cash flows from noncapital financing activities: Intergovernmental - 51,403 - 51,40364,186 Increases in other postemployment benefits payable - - 36,04736,04730,010 Net cash flows from noncapital financing activities:051,40336,04787,450149,994 Net increase (decrease) in cash and cash equivalents (229,470) - - (229,470)55,798 Cash and cash equivalents - January 1 1,353,178 - - 1,353,178 1,297,380 Cash and cash equivalents - December 31 $1,123,708 $0 $0 $1,123,708 $1,353,178 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)$ - $9,629($36,047)($26,418)$146,168 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: (Increase) decrease in deferred pension outflows - 2,360,646 - 2,360,646 1,346,523 Increase (decrease) in compensated absences (229,470) - - (229,470)55,798 Increase (decrease) in net pension liability - (101,465) - (101,465)(1,575,487) Increase (decrease) in deferred pension inflows - (2,320,213) - (2,320,213)(11,400) Total adjustments (229,470)(61,032)0(290,502)(184,566) Net cash flows from operating activities ($229,470)($51,403)($36,047)($316,920)($38,398) Total 182 III. STATISTICAL SECTION (UNAUDITED) 183                                                 ‐ This page intentionally left blank ‐  184 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 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. 185 CITY OF COLUMBIA HEIGHTS, MINNESOTA NET POSITIONS BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2010201120122013 Governmental activities: Invested in capital assets, net of related debt$26,279,178 $28,095,261 $27,666,461 $27,358,490 Restricted 2,034,030 3,213,455 2,624,466 2,025,652 Unrestricted 23,142,534 21,119,179 21,241,595 22,222,578 Total governmental activities net position $51,455,742 $52,427,895 $51,532,522 $51,606,720 Business-type activities: Invested in capital assets, net of related debt$8,044,184 $9,331,167 $9,819,666 $10,365,407 Restricted 438,275 381,465 161,503 643,320 Unrestricted 6,725,383 5,918,147 6,680,609 6,690,111 Total business-type activities net position $15,207,842 $15,630,779 $16,661,778 $17,698,838 Primary government: Invested in capital assets, net of related debt$34,323,362 $37,426,428 $37,486,127 $37,723,897 Restricted 2,472,305 3,594,920 2,785,969 2,668,972 Unrestricted 29,867,917 27,037,326 27,922,204 28,912,689 Total primary government net position $66,663,584 $68,058,674 $68,194,300 $69,305,558 Note: The City implemented GASB statement No. 65 in fiscal 2012. 2011 net position information has been restated for this accounting change. Years prior to 2011 have not been restated. 186 Table 1 201420152016201720182019 $26,049,057 $27,168,555 $29,429,299 $30,852,838 $28,080,462 $29,402,901 3,752,839 4,710,968 5,175,865 3,145,032 5,032,456 2,745,259 23,157,208 15,717,275 13,983,621 15,789,925 16,318,914 19,319,906 $52,959,104 $47,596,798 $48,588,785 $49,787,795 $49,431,832 $51,468,066 $10,729,457 $11,928,401 $11,965,156 $11,831,468 $11,675,036 $11,498,655 543,822 533,756 571,852 498,838 559,390 517,262 7,269,897 6,098,230 6,533,748 7,111,765 8,093,363 9,734,133 $18,543,176 $18,560,387 $19,070,756 $19,442,071 $20,327,789 $21,750,050 $36,778,514 $39,096,956 $41,394,455 $42,684,306 $39,755,498 $40,901,556 $4,296,661 $5,244,724 $5,747,717 3,643,870 5,591,846 3,262,521 $30,427,105 $21,815,505 $20,517,369 22,901,690 24,412,277 29,054,039 $71,502,280 $66,157,185 $67,659,541 $69,229,866 $69,759,621 $73,218,116 187 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2010201120122013 Expenses Governmental activities: General government$2,013,750 $2,039,680 $1,977,594 $1,976,207 Public safety 5,473,224 5,549,678 5,708,009 5,683,769 Public works 2,777,966 2,654,047 3,200,572 2,843,102 Culture and recreation 2,479,519 2,576,409 2,500,719 2,553,760 Community development 2,295,574 1,630,350 2,157,966 2,010,040 Interest on long-term debt 959,320 909,858 845,879 808,933 Total governmental activities expenses 15,999,353 15,360,022 16,390,739 15,875,811 Business-type activities: Water2,000,101 2,370,076 2,311,858 2,371,414 Sewer 1,478,518 1,710,381 1,464,269 1,538,970 Refuse 1,426,486 1,561,659 1,601,648 1,628,966 Storm sewer 272,355 298,577 329,998 307,876 Liquor 7,910,951 8,155,888 8,371,610 8,341,309 Total business-type activities expenses 13,088,411 14,096,581 14,079,383 14,188,535 Total primary government expenses $29,087,764 $29,456,603 $30,470,122 $30,064,346 Program revenues Governmental activities: Charges for services: General government$192,005$189,641 $204,391 $385,728 Public safety 715,205 697,656 736,927 706,168 Public works 44,211 48,303 139,305 39,141 Culture and recreation 269,825 159,829 137,978 163,931 Community development1,114,848 962,276 961,420 976,030 Operating grants and contributions: General government - - - - Public safety 559,482 563,914 556,387 511,527 Public works 166,468 176,578 189,039 233,748 Culture and recreation 93,474 76,864 57,337 56,069 Community development 241,919 112,895 23,010 - Capital grants and contributions: General government194,84238,399 - - Public safety16,026 11,303 - - Public works2,848,179 1,314,547 797,921 855,227 Culture and recreation 15,724 - - - Community development 541,826 175,467 204,349 1,026,706 Total governmental activities program revenues 7,014,034 4,527,672 4,008,064 4,954,275 188 Table 2 Page 1 of 2 201420152016201720182019 $2,104,025 $2,128,964 $2,239,601 $2,087,930 $2,252,456 $2,237,467 5,801,747 6,265,485 7,891,721 6,927,308 6,584,189 6,875,101 3,052,844 3,529,547 3,653,777 3,452,239 4,841,290 3,404,984 2,565,755 2,926,004 2,982,919 3,057,306 3,821,503 3,699,635 1,943,576 1,555,640 877,622 1,147,550 1,398,103 1,002,298 761,967 948,493 958,465 973,688 688,884 535,798 16,229,914 17,354,133 18,604,105 17,646,021 19,586,425 17,755,283 2,336,475 2,367,954 2,535,133 3,090,927 2,748,803 2,678,905 1,789,260 1,621,506 1,770,538 1,977,662 1,820,151 1,994,854 1,695,997 1,753,406 1,860,602 2,037,098 1,944,325 1,883,849 315,809 541,926 490,608 380,844 511,836 812,304 8,148,788 8,125,188 8,274,354 8,098,980 8,227,772 8,491,315 14,286,329 14,409,980 14,931,235 15,585,511 15,252,887 15,861,227 $30,516,243 $31,764,113 $33,535,340 $33,231,532 $34,839,312 $33,616,510 $194,201 $206,531 $289,304 $262,466 $264,782 $239,208 752,694 703,489 670,144 712,314 766,450 957,982 89,39251,991273,698 504,412 154,219 164,769 234,494 227,224 240,331 255,498 289,066 254,286 987,722 1,001,740 1,059,585 1,045,924 373,610 704,987 - - - 1,993 37,636 11,133 404,486 485,439 499,319 619,900 516,775 515,846 557,112 1,314,378 1,119,332 518,923 881,029 323,994 31,521 18,422 18,134 56,844 20,830 34,236 - 96,274 - - 2,455 - - - - - - - - 15,350 145,849 4,237 - - 183,706 811,654 929,746 1,693,222 1,059,322 321,087 - 252,260 694,619 369,771 - - 422,773 364,791 100,000 1,500 - - 3,858,101 5,549,543 6,040,061 6,047,004 4,366,174 3,527,528 189 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2010201120122013 Business-type activities: Charges for services: Water$2,503,506 $2,530,803 $2,777,383 $3,020,174 Sewer 1,594,322 1,523,852 1,581,516 1,618,786 Refuse 1,542,312 1,682,178 1,761,860 1,826,226 Storm sewer 345,086 350,618 353,343 368,925 Liquor 8,158,259 8,494,962 8,804,233 8,747,084 Operating grants and contributions: Water - - - 1,971 Sewer - - - - Refuse36,65366,16362,47168,565 Storm sewer - - - 14,335 Liquor - - - - Capital grants and contributions: Sewer - - - - Refuse - - 50,000 - Storm sewer - - - - Total business-type activities program revenues 14,180,138 14,648,576 15,390,806 15,666,066 Total primary government program revenues $21,194,172 $19,176,248 $19,398,870 $20,620,341 Net (expense) revenue: Governmental activities ($8,985,319)($10,832,350)($12,382,675)($10,921,536) Business-type activities 1,091,727 551,995 1,311,423 1,477,531 Total primary government net (expense) revenue (7,893,592)(10,280,355)(11,071,252)(9,444,005) General revenues and other changes in net position Governmental activities: Taxes: Property taxes8,825,502 9,069,092 9,363,598 9,827,378 Tax increment collections 812,965 558,861 553,050 532,524 Unrestricted grants and contributions 1,176,934 1,278,195 1,003,552 1,000,513 Investment earnings 487,612 598,880 295,950 (664,694) Miscellaneous - 34,4857,33811,842 Transfers92,044 264,990 263,814 288,171 Total governmental activities11,395,057 11,804,503 11,487,302 10,995,734 Business-type activities: Investment earnings86,110 135,932 63,321 (152,300) Transfers (92,044)(264,990)(263,814)(288,171) Total business-type activities (5,934)(129,058)(200,493)(440,471) Total primary government $11,389,123 $11,675,445 $11,286,809 $10,555,263 Change in net position: Governmental activities $2,409,738 $972,153($895,373)$74,198 Business-type activities 1,085,793 422,937 1,110,930 1,037,060 Total primary government $3,495,531 $1,395,090 $215,557 $1,111,258 190 Table 2 Page 2 of 2 201420152016201720182019 $2,805,072 $2,730,516 $2,961,086 $3,140,940 $3,325,053 $3,431,811 1,627,078 1,699,397 1,836,908 1,925,057 2,026,695 2,074,560 1,887,038 1,896,230 1,867,504 1,914,728 1,986,709 2,068,509 366,384 375,663 399,604 455,544 458,573 480,867 8,415,371 8,399,943 8,468,098 8,422,452 8,588,576 8,914,878 - - - - - - - - - - - - 91,421 96,518 99,454 103,517 112,679 102,190 - - - - - - - - - 3,987 5,694 4,030 - - 70,645 - - 160,288 - - - - - - 47,369 747,334 - - - 350,253 15,239,733 15,945,601 15,703,299 15,966,225 16,503,979 17,587,386 $19,097,834 $21,495,144 $21,743,360 $22,013,229 $20,870,153 $21,114,914 ($12,371,813)($11,804,590)($12,564,044)($11,599,017)($15,220,251)($14,227,755) 953,404 1,535,621 772,064 380,714 1,251,092 1,726,159 (11,418,409)(10,268,969)(11,791,980)(11,218,303)(13,969,159)(12,501,596) 10,310,867 10,512,483 10,752,430 11,029,020 11,673,168 12,325,204 463,837 491,639 556,880 604,510 732,192 977,598 1,496,804 1,682,480 1,588,094 1,547,164 1,676,553 1,684,119 1,091,263 342,384 232,036 318,554 354,373 829,368 - (679,895)9,226 574,800 5,528 25,500 361,426 369,099 422,365 (231,537)422,474 422,200 13,724,197 12,718,190 13,561,031 13,842,511 14,864,288 16,263,989 252,360 62,521 40,670 44,453 57,100 118,302 (361,426)(369,099)(422,365)231,537 (422,474)(422,200) (109,066)(306,578)(381,695)275,990 (365,374)(303,898) $13,615,131 $12,411,612 $13,179,336 $14,118,501 $14,498,914 $15,960,091 $1,352,384 $913,600 $996,987 $2,243,494 ($355,963)$2,036,234 844,338 1,229,043 390,369 656,704 885,718 1,422,261 $2,196,722 $2,142,643 $1,387,356 $2,900,198 $529,755$3,458,495 191 CITY OF COLUMBIA HEIGHTS, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2010201120122013 General fund: Reserved$77,204$ - $ - $ - Unreserved5,265,035 - - - Nonspendable - 80,76787,34192,638 Restricted - - - - Committed - 132,595 74,594 50,237 Assigned - - - - Unassigned - 5,655,693 5,914,974 6,254,402 Total general fund $5,342,239$5,869,055$6,076,909$6,397,277 All other governmental funds: Reserved $1,550,071 $ - $ - $ - Unreserved, reported in: Special revenue funds 3,190,618 - - - Debt service funds 3,713,774 - - - Capital projects funds 11,642,407 - - - Nonspendable - 2,353,164 2,763,852 1,750,114 Restricted - 3,440,649 4,186,081 3,879,706 Committed - 12,774,44010,988,36812,229,481 Assigned - - - - Unassigned - (1,041)(2,782)(39,344) Total all other governmental funds $20,096,870$18,567,212$17,935,519$17,819,957 192 Table 3 201420152016201720182019 $ - $ - $ - $ - $ - $ - - - - - - - 94,892 94,848 109,841 105,975 136,962 137,545 - - - - - - 30,548 - - - - - - 44,000 105,000 1,604,438 61,477 52,471 7,248,380 6,873,054 7,318,303 5,991,395 6,641,233 7,685,738 $7,373,820$7,011,902$7,533,144$7,701,808$6,839,672$7,875,754 $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - 1,522,537 2,724 2,852 2,689 11,938 2,587 4,368,851 9,821,307 6,582,938 4,347,012 6,221,392 4,350,015 13,593,60912,902,16512,417,31015,778,76216,780,63418,019,074 - - - 70,000 - (75,389)(92,040)(209,781)(203,498)(177,101)(143,922) $19,409,608$22,634,156$18,793,319$19,994,965$22,836,863$22,227,754 193 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2010201120122013 Revenues: Taxes$9,631,635$9,683,433$9,948,228$10,416,523 Special assessments1,020,334729,327775,714667,719 Licenses and permits479,148378,357396,226412,208 Intergovernmental 4,936,4432,820,4192,314,1952,719,400 Charges for services1,650,7721,652,6551,663,7821,710,767 Fines and forfeitures188,693170,089161,882148,023 Investment earnings469,312562,180275,750(611,794) Other revenues273,44670,17363,674104,577 Total revenues18,649,783 16,066,633 15,599,451 15,567,423 Expenditures: Current: General government1,926,9821,880,2571,813,4331,791,379 Public safety4,968,4335,037,5485,250,8815,171,322 Public works1,731,7001,509,5272,011,5071,644,075 Culture and recreation2,194,8532,306,6932,184,2142,233,446 Community development1,351,3681,321,4311,434,3291,205,273 Capital outlay: General government - 144,029209,17613,868 Public safety237,27295,281158,44870,960 Public works2,925,1741,882,787557,820896,223 Culture and recreation194,380140,86718,10739,768 Community development1,202,99840,549636,294566,901 Debt service: Principal retirement765,7361,659,022972,0001,559,730 Interest and fiscal charges981,281935,405861,139833,890 Issuance costs - - - - Developer incentives141,005181,638116,072163,972 Total expenditures18,621,182 17,135,034 16,223,420 16,190,807 Revenues over (under) expenditures28,601 (1,068,401)(623,969)(623,384) 194 Table 4 Page 1 of 2 201420152016201720182019 $10,774,987$11,022,424$11,313,376$11,653,834$12,397,958$13,243,758 458,6701,116,7341,048,926545,629640,997439,609 415,032626,547672,000638,176469,517644,829 2,766,3834,079,1843,989,3084,192,2733,466,5102,727,327 1,702,9001,440,3611,429,0501,875,0881,100,4481,370,098 140,571124,067104,645108,768112,553126,103 1,011,063318,284215,336290,454320,573759,768 73,815189,073463,354116,643165,609445,752 17,343,421 18,916,674 19,235,995 19,420,865 18,674,165 19,757,244 1,939,689 1,950,062 2,107,655 2,012,379 2,200,506 2,167,890 5,270,798 5,595,115 5,570,221 5,914,460 6,213,179 6,402,812 1,916,874 2,220,057 2,227,108 2,216,178 3,395,095 2,248,270 2,247,452 2,581,993 2,605,616 2,700,291 2,867,725 2,869,593 1,544,419 1,136,220 685,180 803,035 838,417 671,671 21,642 - - 28,000 - 80,600 103,707 608,932 182,696 230,144 222,395 801,837 79,2251,727,488 1,275,862 2,365,538 404,086 245,736 100,248 4,173,606 6,284,441 575,894 659,776 6,314 413,179 507,472 531,707 71,164 396,783 - 662,000 1,036,716 884,370 1,047,635 1,240,000 1,200,000 770,535 826,921 910,586 667,863 672,741 607,637 - 85,016 107,325 108,255 55,615 - 55,123 164,188 91,646 307,654 254,166 474,949 15,124,891 22,613,786 23,464,413 19,048,490 19,420,484 17,777,309 2,218,530 (3,697,112)(4,228,418)372,375 (746,319)1,979,935 195 CITY OF COLUMBIA HEIGHTS, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2010201120122013 Other financing sources (uses): Bonds issued$ - $ - $ - $563,021 Payment to refunded bond escrow - - - - Bond premium (discount) - - - - Transfers in 407,272 411,736 298,814 326,740 Transfers out (120,100)(302,881)(110,000)(113,569) Sale of capital assets - 40,999 11,315 51,997 Special item - - - - Total other financing sources (uses)287,172 149,854 200,129 828,189 Net change in fund balance $315,773($918,547)($423,840)$204,805 Expenditures capitalized for governmental activities reporting purposes 3,637,559 2,270,210 943,602 952,108 Debt service as a percentage of noncapital expenditures (A) (B)11.7%17.5%12.0%15.7% Debt service as a percentage of total expenditures (A) (B)9.4%15.1%11.3%14.8% (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. 196 Table 4 Page 2 of 2 201420152016201720182019 $ - $6,875,000$2,435,000$8,505,000$2,070,000$ - - - (2,426,300)(8,559,429) - (2,030,000) - 293,651 79,890 163,700 19,921 - 405,728 429,099 435,697 1,594,501 512,282 446,588 (124,302)(120,000)(88,917)(1,168,201)(891) - 66,236 9,135 284,536 651,281 124,769 30,450 - (927,142) - - - - 347,662 6,559,743 719,906 1,186,852 2,726,081 (1,552,962) $2,566,192$2,862,631($3,508,512)$1,559,227$1,979,762 $426,973 417,503 6,602,755 7,797,656 3,099,578 679,811 1,134,487 9.7%11.6%11.5%10.8%10.2%10.9% 9.5%8.2%7.6%9.0%9.8%10.2% 197 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 TA X C A P A C I T Y V A L U E A N D E S T I M A T E D M A R K E T V A L U E O F A L L T A X A B L E P R O P E R T Y Ta b l e 5 La s t T e n F i s c a l Y e a r s (U n a u d i t e d ) Ad j u s t e d A d j u s t e d T a x T a x C a p a c i t y V a l u e ( A ) T a x a b l e N e t T o t a l E s t i m a t e d C a p a c i t y V a l u e Fi s c a l Ot h e r C a p t u r e d T a x Ar e a W i d e A l l o c a t i o n ( C ) T a x C a p a c i t y D i r e c t T a x M a r k e t a s a P e r c e n t Ye a r R e s i d e n t i a l P r o p e r t y ( B ) I n c r e m e n t V a l u e S u b t o t a l C o n t r i b u t i o n D i s t r i b u t i o n V a l u e R a t e V a l u e o f E M V 20 1 0 1 1 , 9 9 7 , 2 9 7 2 , 4 0 1 , 1 9 7 ( 8 0 3 , 2 9 8 ) 1 3 , 5 9 5 , 1 9 6 ( 6 2 4 , 2 3 1 ) 3 , 5 7 9 , 4 1 6 1 6 , 5 5 0 , 3 8 1 5 6 . 8 8 1 % 1 , 3 0 3 , 0 7 2 , 9 0 0 1 . 2 7 0 % 20 1 1 1 0 , 8 9 0 , 6 3 1 2 , 2 1 8 , 8 0 9 ( 5 6 8 , 7 1 9 ) 1 2 , 5 4 0 , 7 2 1 ( 7 9 6 , 0 5 8 ) 3 , 8 1 1 , 8 5 6 1 5 , 5 5 6 , 5 1 9 6 1 . 8 0 4 % 1 , 1 8 5 , 7 8 2 , 6 0 0 1 . 3 1 2 % 20 1 2 9 , 0 8 7 , 6 6 6 2 , 1 4 1 , 1 4 0 ( 5 2 1 , 3 0 6 ) 1 0 , 7 0 7 , 5 0 0 ( 7 1 0 , 7 0 9 ) 4 , 0 5 9 , 4 3 2 1 4 , 0 5 6 , 2 2 3 6 6 . 3 0 0 % 1 , 1 3 4 , 7 2 0 , 2 0 0 1 . 2 3 9 % 20 1 3 7 , 6 9 2 , 2 8 8 1 , 9 4 6 , 2 4 5 ( 4 8 9 , 2 3 3 ) 9 , 1 4 9 , 3 0 0 ( 6 7 8 , 1 0 5 ) 4 , 0 5 1 , 4 9 7 1 2 , 5 2 2 , 6 9 2 8 0 . 8 7 1 % 9 9 3 , 9 8 4 , 3 0 0 1 . 2 6 0 % 20 1 4 8 , 1 9 4 , 7 0 9 1 , 0 1 2 , 6 9 0 ( 4 4 3 , 8 3 8 ) 8 , 7 6 3 , 5 6 1 ( 5 6 8 , 8 5 2 ) 4 , 3 3 4 , 6 6 2 1 2 , 5 2 9 , 3 7 1 7 8 . 1 7 7 % 9 5 4 , 4 7 5 , 0 0 0 1 . 3 1 3 % 20 1 5 8 , 8 7 2 , 2 9 4 1 , 8 2 4 , 7 4 6 ( 4 6 5 , 4 3 3 ) 1 0 , 2 3 1 , 6 0 7 ( 5 6 9 , 5 8 8 ) 4 , 3 3 9 , 0 4 0 1 4 , 0 0 1 , 0 5 9 7 0 . 8 1 1 % 1 , 0 9 3 , 8 6 1 , 5 0 0 1 . 2 8 0 % 20 1 6 9 , 2 6 2 , 6 8 3 1 , 8 6 1 , 3 2 3 ( 5 2 3 , 7 5 4 ) 1 0 , 6 0 0 , 2 5 2 ( 5 5 5 , 8 0 4 ) 4 , 1 4 9 , 9 0 6 1 4 , 1 9 4 , 3 5 4 7 4 . 8 4 1 % 1 , 1 3 2 , 2 5 7 , 3 0 0 1 . 2 5 4 % 20 1 7 1 0 , 0 2 4 , 4 3 7 1 , 9 9 4 , 0 2 8 ( 5 6 7 , 6 4 0 ) 1 1 , 4 5 0 , 8 2 5 ( 5 8 0 , 1 5 4 ) 4 , 4 6 8 , 9 5 9 1 5 , 3 3 9 , 6 3 0 6 8 . 5 4 6 % 1 , 2 1 4 , 0 0 9 , 3 0 0 1 . 2 6 % 20 1 8 1 1 , 3 1 7 , 9 8 1 2 , 0 3 6 , 6 0 5 ( 6 8 4 , 3 5 2 ) 1 2 , 6 7 0 , 2 3 4 ( 6 0 3 , 7 0 5 ) 4 , 6 1 3 , 8 3 8 1 6 , 6 8 0 , 3 6 7 6 7 . 6 4 5 % 1 , 3 3 5 , 4 3 8 , 3 0 0 1 . 2 5 % 20 1 9 1 2 , 5 9 3 , 3 5 9 1 , 9 7 7 , 2 0 0 ( 9 1 7 , 3 9 4 ) 1 3 , 6 5 3 , 1 6 5 ( 6 5 3 , 6 2 3 ) 4 , 6 5 2 , 0 4 8 1 7 , 8 0 3 , 0 2 3 6 6 . 7 7 5 % 1 , 4 6 6 , 6 8 2 , 0 0 0 1 . 2 1 % (A ) 2 0 1 2 - 2 0 1 9 t a x a b l e m a r k e t v a l u e s u s e d t o c a l c u l a t e t a x c a p a c i t y v a l u e s i n t h i s t a b l e a r e r e d u c e d b y t h e m a r k e t v a l u e h o m e s t e a d e x c l u s i o n , w h i c h i s n e w f o r 2 0 1 2 . (B ) T h e c a t e g o r y " O t h e r P r o p e r t y " i s s u b s t a n t i a l l y a l l c o m m e r c i a l / i n d u s t r i a l p r o p e r t y , p l u s n o m i m a l a m o u n t s o f r a i l r o a d a n d p e r s o n a l p r o p e r t y . ( C ) T h e M e t r o p o l i t a n F i s c a l D i s p a r i t i e s A c t w a s f i r s t i m p l e m e n t e d f o r t a x e s p a y a b l e i n 1 9 7 5 f o r t h e s e v e n M e t r o p o l i t a n c o u n t i e s of A n o k a , C a r v e r , D a k o t a , H e n n e p i n , R a m s e y , S c o t t , a n d W a s h i n g t o n . F o r t y p e r c e n t o f t h e i n c r e a s e i n co m m e r c i a l - i n d u s t r i a l ( i n c l u d i n g p u b l i c u t i l i t y ) v a l u a t i o n i n e a c h a s s e s s m e n t d i s t r i c t s i n c e 1 9 7 1 i s c o n t r i b u t e d t o a n a r e a - w i d e ta x b a s e . U s i n g t h e f a c t o r s o f p o p u l a t i o n a n d r e a l p r o p e r t y m a r k e t v a l u e , a p e r c a p i t a d i s t r i b u t i o n i n d e x i s c a l c u l a t e d . T h i s in d e x i s e m p l o y e d i n d e t e r m i n i n g w h a t p r o p o r t i o n o f t h e v a l u a t i o n s h a l l b e d i s t r i b u t e d b a c k t o e a c h a s s e s s m e n t d i s t r i c t . S o u r c e : A n o k a C o u n t y A u d i t o r ' s T a x C e r t i f i c a t e 198 CITY OF COLUMBIA HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES (A) Table 6 Last Ten Fiscal Years City FiscalDirectSchoolSpecial YearRate (A)District 13CountyDistricts ( C)Total 201056.881%24.547%32.696%9.185%123.309% 201161.804%18.842%37.235%9.605%127.486% 201266.300%24.200%38.415%9.932%138.847% 201380.871%27.636%41.443%12.464%162.414% 201478.177%24.824%40.365%12.297%155.663% 201570.811%32.562%35.964%10.811%150.148% 201674.841%29.442%36.637%11.016%151.936% 201768.546%27.633%34.633%10.304%141.116% 201867.645%27.900%33.269%9.871%138.685% 201966.775%33.148%32.505%9.074%141.502% (A)These property tax rates are stated as a percentage of tax capacity value. Refer to Table 5 for tax capacity value. Tax capacity values after 2011 are reduced the market value homestead exclusion, which excludes a portion of homesteaded value from taxation. Consequently, post-2011 tax rates are stated higher for any given levy amount, relative to prior years. Rates are determined by tax district. Within the Anoka County property tax system, the City is an individual tax district. Thus the City direct rate is an individual rate, and is not comprised of component direct rates. (B)Overlapping rates are those of local and county governments that apply to property owners within the City. Most, but not all, overlapping rates apply to all City property owners. For example, although the school and county property tax rates apply to all City property owners, special district rates apply only to the City property owners whose property is located within each special district's geographic boundaries. (C)Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control District, N.E. Metro School District 916, Rice Creek Watershed District, Anoka County Housing and Redevelopment Authority, Anoka County Regional Rail Authority, County/City Radio, Columbia Heights Housing and Redevelopment Authority and the Mississippi Watershed Management. Overlapping Rates (B) 199                                                 ‐ This page intentionally left blank ‐  200 CITY OF COLUMBIA HEIGHTS, MINNESOTA PRINCIPAL PROPERTY TAX PAYERS Table 7 Current Year and Ten Years Ago Percentage Percentage Taxof Total CityTaxableof Total City CapacityTax CapacityCapacityTax Capacity TaxpayerValue (A) & (B)RankValueValue (A)RankValue Columbia Heights Leased Housing$208,00311.43%N/AN/AN/A Medtronic Inc 171,4322 1.18%$228,3721 1.59% Crestview Corporation 134,8233 0.93%106,7026 0.74% Jones Family Investments LLC 129,4154 0.89%N/AN/A N/A Burlington Northern 115,940 5 0.80%N/AN/A N/A Columbia Park Properties 98,1086 0.67%112,8683 0.78% Parkview Limited Partnership 95,7507 0.66%N/AN/A N/A Xcel Energy/ Northern States Power Co 86,4508 0.59%N/AN/A N/A Lynde Investment Co MN Partnership 81,2279 0.56%78,2418 0.54% Health Care Reit Inc 75,34010 0.52%N/AN/A N/A Columbia Heights Center LLC 68,64011 0.47%87,354 7 0.61% Centro Bradley SPE 5 LLC N/AN/A N/A149,696 2 1.04% New Heights Development LLC N/AN/A N/A73,1199 0.51% Consolidated Realty of Mpls N/AN/A N/A109,689 5 0.76% Jeff's Bobby & Steve's Auto World 54,60515 0.37%72,34610 0.50% Stadium Village Properties LLC N/AN/A N/A112,494 4 0.78% Total $1,319,733 9.06%$1,130,881 7.85% Total All Property $14,570,559 $14,398,494 (A) Tax Capacity values in this table are before adjustments for captured tax increment value and area-wide allocations. See Table 5. (B) 2019 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. 20102019 201 CITY OF COLUMBIA HEIGHTS, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Years CountyState Market FiscalGrossAdjustmentsValue HomesteadAdjusted YearTax Levy (A)to Levy (B)Credit (A)Tax Levy 2010$9,075,425($302)($535,625)$8,539,498 20119,426,760(141)(608,241)8,818,378 20129,136,706(54) - 9,136,652 20139,536,888(182) - 9,536,706 20149,911,706166 - 9,911,872 201510,233,706207 - 10,233,913 201610,455,756196 - 10,455,952 201710,795,834188 - 10,796,022 201811,324,91397 - 11,325,010 201911,928,224224 - 11,928,448 (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. 202 Table 8 Collections in Total Collections to Date Collection% of AdjustedSubsequent % of Adjusted Amount Tax Levy Years Amount Tax Levy $8,279,06596.95%$258,240$8,537,30599.97% 8,578,78497.28%237,757 8,816,54199.98% 8,932,56497.77%200,654 9,133,21899.96% 9,379,87398.36%149,746 9,529,61999.93% 9,778,63198.66%114,660 9,893,29199.81% 10,103,67598.73%114,75410,218,42999.85% 10,335,41898.85%103,50210,438,92099.84% 10,560,01097.81%216,88010,776,89099.82% 11,090,24797.93%197,38411,287,63199.67% Not AvailableNot Available N/A Not AvailableNot Available Collected Within The Fiscal Year For Which Levied 203                                                 ‐ This page intentionally left blank ‐  204 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 RA T I O S O F O U T S T A N D I N G D E B T B Y T Y P E T a b l e 9 La s t T e n F i s c a l Y e a r s Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - T y p e A c t i v i t i e s Al l A c t i v i t i e s Ge n e r a l Ge n e r a l Ge n e r a l Ge n e r a l Li q u o r Ob l i g a t i o n Ob l i g a t i o n Ob l i g a t i o n Ob l i g a t i o n Fa c i l i t y Bo n d s R e p a i d Bo n d s Bo n d s W i t h T a x I n c r e m e n t To t a l Bo n d s W i t h Le a s e To t a l Pe r c e n t a g e Fi s c a l On l y W i t h W i t h P l e d g e d P l e d g e d S p e c i a l R e v e n u e G o v e r n m e n t a l P l e d g e d Re v e n u e B u s i n e s s - T y p e To t a l of P e r s o n a l Pe r Ye a r Ge n e r a l T a x e s T a x I n c r e m e n t A s s e s s m e n t s Bo n d s Ac t i v i t i e s R e v e n u e s Bo n d s ( B ) Ac t i v i t i e s Al l D e b t In c o m e ( A ) Ca p i t a ( A ) 20 1 0 $1 3 , 8 5 5 , 0 0 0 $5 8 0 , 0 0 0 $3 , 9 7 6 , 7 5 0 $2 , 8 3 8 , 0 0 0 $2 1 , 2 4 9 , 7 5 0 $2 , 1 2 8 , 2 4 8 $4 , 9 0 0 , 0 0 0 $7 , 0 2 8 , 2 4 8 $2 8 , 2 7 7 , 9 9 8 6. 0 % $1 , 4 5 0 20 1 1 13 , 4 8 0 , 0 0 0 58 0 , 0 0 0 2, 7 4 0 , 7 3 0 2, 7 9 0 , 0 0 0 19 , 5 9 0 , 7 3 0 1, 3 0 4 , 2 7 0 4, 7 5 0 , 0 0 0 6, 0 5 4 , 2 7 0 25 , 6 4 5 , 0 0 0 5. 3 % 1, 3 1 5 20 1 2 13 , 0 9 0 , 0 0 0 58 0 , 0 0 0 2, 2 1 1 , 7 3 0 2, 7 3 7 , 0 0 0 18 , 6 1 8 , 7 3 0 1, 1 2 3 , 2 7 0 4, 5 9 5 , 0 0 0 5, 7 1 8 , 2 7 0 24 , 3 3 7 , 0 0 0 4. 8 % 1, 2 4 0 20 1 3 12 , 6 8 5 , 0 0 0 52 5 , 0 0 0 1, 7 3 3 , 0 2 1 2, 6 7 9 , 0 0 0 17 , 6 2 2 , 0 2 1 2, 4 3 6 , 9 7 9 4, 4 3 0 , 0 0 0 6, 8 6 6 , 9 7 9 24 , 4 8 9 , 0 0 0 5. 1 % 1, 2 4 5 20 1 4 12 , 2 6 0 , 0 0 0 47 0 , 0 0 0 1, 6 1 3 , 0 2 1 2, 6 1 7 , 0 0 0 16 , 9 6 0 , 0 2 1 2, 4 0 1 , 9 7 9 4, 2 6 0 , 0 0 0 6, 6 6 1 , 9 7 9 23 , 6 2 2 , 0 0 0 4. 9 % 1, 2 0 1 20 1 5 18 , 7 3 3 , 8 6 3 41 0 , 0 0 0 1, 3 7 9 , 3 0 5 2, 5 4 9 , 0 0 0 23 , 0 7 2 , 1 6 8 2, 0 8 5 , 6 9 5 4, 0 8 0 , 0 0 0 6, 1 6 5 , 6 9 5 29 , 2 3 7 , 8 6 3 6. 1 % 1, 4 8 6 20 1 6 18 , 3 3 0 , 2 3 2 35 0 , 0 0 0 1, 1 3 2 , 6 3 5 2, 4 3 5 , 0 0 0 22 , 2 4 7 , 8 6 7 1, 7 7 7 , 3 6 5 3, 8 9 5 , 0 0 0 5, 6 7 2 , 3 6 5 27 , 9 2 0 , 2 3 2 5. 8 % 1, 4 2 2 20 1 7 18 , 1 0 0 , 5 3 1 28 5 , 0 0 0 88 0 , 0 0 0 2, 3 1 5 , 0 0 0 21 , 5 8 0 , 5 3 1 4, 7 8 3 , 1 0 5 - 4 , 7 8 3 , 1 0 5 26 , 3 6 3 , 6 3 6 5. 3 % 1, 3 1 9 20 1 8 19 , 2 8 1 , 6 1 8 22 0 , 0 0 0 69 5 , 0 0 0 2, 1 9 0 , 0 0 0 22 , 3 8 6 , 6 1 8 4, 3 6 1 , 4 2 9 - 4 , 3 6 1 , 4 2 9 26 , 7 4 8 , 0 4 7 5. 0 % 1, 3 2 7 20 1 9 16 , 4 9 7 , 6 1 8 - 55 0 , 0 0 0 2, 0 6 5 , 0 0 0 19 , 1 1 2 , 6 1 8 3, 8 7 5 , 6 8 2 - 3 , 8 7 5 , 6 8 2 22 , 9 8 8 , 3 0 0 4. 0 % 1, 1 2 1 (A ) B a s e d o n p o p u l a t i o n a n d i n c o m e d a t a i n T a b l e 1 4 . (B ) I n 2 0 1 7 , L i q u o r F a c i l i t y L e a s e R e v e n u e B o n d s w e r e r e f u n d e d w i t h p l e d g e d r e v e n u e G e n e r a l O b l i g a t i o n B o n d s . Ce r t a i n i n f o r m a t i o n f r o m p r i o r y e a r s ' p r e s e n t a t i o n s h a v e b e e n r e s t a t e d i n t h i s t a b l e t o c o n f o r m t o t h e c u r r e n t p r e s e n t a t i o n . 205 CITY OF COLUMBIA HEIGHTS, MINNESOTA RATIOS OF OUTSTANDING NET GENERAL BONDED DEBT BY TYPE Last Ten Fiscal Years Subtotal of GovernmentalLess:GovernmentalPercentage General GovernmentalNet Generalof Estimated FiscalObligationRestricted forObligationProperty YearBondsRepaymentBonded DebtValue (B) 2010$18,411,750$3,713,774$14,697,9761.13% 201116,800,7302,162,11914,638,6111.23% 201215,881,7301,559,98514,321,7451.26% 201314,943,0211,000,83113,942,1901.40% 201414,281,0211,134,22713,146,7941.38% 201520,249,3051,174,47319,074,8321.74% 201619,812,8671,580,52918,232,3381.61% 2017( C)19,265,5311,035,92018,229,6111.50% 2018( C)20,196,6183,184,43317,012,1851.27% 2019( C)17,047,6181,173,48615,874,1321.08% (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. 206 Table 10 Business-typeSubtotal of GeneralLess:Business-type Obligation BondsBusiness-typeNet GeneralPercentage ofTotal With PledgedRestricted forObligationBusiness-typeNet GeneralPer RevenuesRepaymentBonded DebtRevenueBonded DebtCapita (A) $2,128,248$287,453$1,840,79530.8%$16,538,771848 1,304,270273,9661,030,30416.9%15,668,915801 1,123,270226,292896,97813.9%15,218,723632 2,436,979259,3662,177,61333.7%16,119,803820 2,401,979543,8221,858,15728.8%15,004,951763 2,085,695533,7561,551,93923.2%20,626,7711,044 1,777,365571,8521,205,51317.1%19,437,851990 4,783,105499,8384,283,26727.0%22,512,8781,126 4,361,429559,3903,802,03923.2%20,814,2241,033 3,875,682517,2623,358,42019.8%19,232,552938 207 CITY OF COLUMBIA HEIGHTS, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 December 31, 2019 Estimated EstimatedShare of DebtPercentageOverlapping Governmental Unit (A)OutstandingApplicable (B)Debt Debt repaid with property taxes: Anoka County$92,260,0004.5492%$3,754,682 Independent School District 1310,625,000 72.7383%7,728,444 Metropolitan Council 1,549,087,966 0.0423%78,399 Subtotal - overlapping debt 11,561,525 City direct debt - governmental activities 19,112,618 Total direct and overlapping debt $30,674,143 (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 208 CITY OF COLUMBIA HEIGHTS, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2019 Assessor's Estimated Market Value (A)$1,466,682,000 Debt limitation percentage (A)3% Debt limit44,000,460 Net debt applicable to limit (B)16,497,618 Legal debt margin$27,502,842 Legal debt margin as a percentage of limit 62.51% Legal Debt Margin Calculation for Fiscal Years 2010 Through 2018 Legal Debt Net DebtLegalMargin as a FiscalDebtApplicable toDebtPercentage YearLimitLimitMarginof Debt Limit 2010$38,979,705$13,855,000$25,124,70564.46% 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% 201633,967,71918,330,23215,637,48746.04% 201736,420,27918,100,53118,319,74850.30% 201840,063,14919,281,61820,781,53151.87% (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. (C )The City's debt is also limited by their Charter, Section 72. Per this Section, the limit on debt is 10% of the 2018/2019 Assessor's Estimated Market Value, or $146,668,200. The City's outstanding debt applicable to the Charter limit, including revenue bonds subject to the Charter limit is $18,562,618. 209 CITY OF COLUMBIA HEIGHTS, MINNESOTA PLEDGED REVENUE COVERAGE NON-OBLIGATION DEBT Last Ten Fiscal Years 2010201120122013 Economic Development Authority Tax Increment Revenue Bonds Series 2007/2016:(A) Tax increment revenue from applicable parcels$241,854$211,533$175,832$170,496 Bond Proceeds - - - - Intergovernmental: Market Value TIF credit 28,11834,351 - - Net available revenue $269,972$245,884$175,832$170,496 Debt service: Principal (including early redemption)43,00048,00053,00058,000 Interest 151,063148,788146,263143,488 Total debt service $194,063$196,788$199,263$201,488 Coverage 139%125%88%85% Economic Development Authority Lease Revenue Bonds Series 2007B:( C) Annual appropriation of liquor net revenues $364,000$390,000$386,000$390,000 Investment income1,1051,5001,000(2,500) Issuance costs and administration (expense)(B)(2,556)(2,000)(2,000)(2,332) Net available revenue$362,549$389,500$385,000$385,168 Debt service: Principal (including early redemption)$140,000$150,000$155,000$165,000 Interest237,155230,630223,768213,178 Total debt service$377,155$380,630$378,768$378,178 Coverage96%102%102%102% (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. ( C)Lease Revenue Bond Series 2007B was refunded to a General Obligation bond in 2017 Note: Details regarding the City's outstanding debt can be found in Note 7 of the financial statements. 210 Table 13 201420152016201720182019 $162,056$196,024$329,617$388,276$432,825$652,796 - - 2,435,000 - - - - - - - - - $162,056$196,024$2,764,617$388,276$432,825$652,796 62,00068,0002,549,000120,000125,000125,000 140,488137,238133,68873,89865,91663,873 $202,488$205,238$2,682,688$193,898$190,916$188,873 80%96%103%200%227%346% $384,000$380,000$392,000$ - $ - $ - 3,230 91 400 455 - - (2,200)(2,667)(2,667)(475) - - $385,030$377,424$389,733 ($20)$0 $0 $170,000$180,000$185,000$3,895,000$ - $ - 209,030201,155192,943184,392 - - $379,030$381,155$377,943$4,079,392$ - $ - 102%99%103%N/A N/A N/A 211 CITY OF COLUMBIA HEIGHTS, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14 Last Ten Fiscal Years Per Capita FiscalPersonalPersonalUnemployment YearPopulationIncomeIncomeRate 201019,496472,037,15224,2128.0% 201119,568487,243,20024,9006.8% 201219,667507,408,60025,8005.9% 201319,667478,616,11224,3365.0% 201419,674502,434,61225,5384.1% 201519,758497,427,40825,1763.6% 201619,632478,137,36024,3553.9% 201719,995494,536,33524,7333.4% 201820,153537,178,21526,6552.8% 201920,503575,375,68928,0633.1% Sources are as follows: Population: Data for 2010 is from the 2010 US Census. Data for 2011-2017 is estimated by the US Census Bureau. Per Capita Income: Data for 2010-2019 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. 212 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 Inc60012.98%60020.34% Independent School District 13 54622.71%69310.39% Crestview Corporation 28031.39%18050.10% City of Columbia Heights 21541.07%20240.11% Columbia Park Clinic 12050.60%25030.14% Invest Cast 7060.35%7070.04% SAVERS/Unique Thrift Shop 6570.32%7560.04% Sarna's Classic Grill 6080.30%N/AN/AN/A Bobby & Steve's Auto World 5090.25%5390.03% La Casita Mexican Restaurant 50100.25%6080.03% US Post Office N/AN/AN/A 50100.03% Rainbow Foods N/AN/AN/A N/A N/A Total 2,05610.20%2,2331.25% (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. 2019 data for other employers was compiled from ReferenceUSA, written and telephone survey, and the Minnesota Department of Employment and Economic Development. 2010 data from 2010 CAFR statistical tables 20102019 213                                                 ‐ This page intentionally left blank ‐  214 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 CI T Y G O V E R N M E N T E M P L O Y E E S B Y F U N C T I O N / P R O G R A M Ta b l e 1 6 La s t T e n F i s c a l Y e a r s Fu n c t i o n / P r o g r a m 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 Ge n e r a l g o v e r n m e n t M a y o r / c o u n c i l 55 5 5 5 5 5 5 5 5 A d m i n i s t r a t i o n 1 0 1 1 1 1 1 0 44 4 4 5 5 F i n a n c e 1 3 1 4 1 3 1 3 1 3 1 3 1 3 1 3 1 3 1 3 Pu b l i c s a f e t y : P o l i c e 3 6 3 5 3 7 3 6 3 5 3 5 3 7 3 9 3 6 4 1 F i r e 3 0 3 2 3 3 3 1 3 1 3 0 2 9 3 0 3 0 3 0 Pu b l i c w o r k s 1 7 1 6 1 6 1 5 2 1 2 3 2 3 2 2 2 2 2 2 Cu l t u r e a n d r e c r e a t i o n : L i b r a r y 1 9 2 1 2 0 2 1 2 1 1 8 1 8 2 0 2 0 2 1 P a r k s 55 5 5 5 5 5 5 5 5 R e c r e a t i o n 1 3 1 6 1 5 1 5 1 5 1 5 1 5 1 6 1 6 1 6 Co m m u n i t y d e v e l o p m e n t 55 4 4 4 4 6 6 6 6 Wa t e r 44 4 4 4 4 4 4 4 4 Se w e r 33 3 4 4 4 4 4 4 4 Re f u s e - - - - - - - - - - St o r m s e w e r 1 1 1 1 1 1 1 1 1 1 Li q u o r 41 39 40 40 40 41 41 42 42 42 To t a l 20 2 2 0 7 2 0 7 2 0 4 2 0 3 2 0 2 2 0 5 2 1 1 2 0 9 2 1 5 So u r c e : O r g a n i z a t i o n a l C h a r t i n t h e C i t y o f C o l u m b i a H e i g h t s C A F R . No t e : T h e a b o v e t a b l e s h o w s t h e d i s t r i b u t i o n o f a l l e m p l o y e e s b y h e a d c o u n t ( i n c l u d i n g f u l l - t i m e , pa r t - t i m e a n d p a i d o n - c a l l ) , b y f u n c t i o n . T h i s b e a r s a s t r o n g r e l a t i o n s h i p t o t h e d i s t r i b u t i o n o f em p l o y e e c o s t s a c r o s s f u n c t i o n s . H o w e v e r , m a n y e m p l o y e e s p r o v i d e s e r v i c e s t o m o r e t h a n o n e fu n c t i o n , a n d e m p l o y e e c o s t s a r e c h a r g e d t o e a c h f u n c t i o n b a s e d o n t h e s e r v i c e s r e c e i v e d b y e a c h f u n c t i o n . Ce r t a i n i n f o r m a t i o n f r o m p r i o r y e a r s ' p r e s e n t a t i o n s h a s b e e n r e s t a t e d i n t h i s t a b l e t o c o n f o r m t o t h e c u r r e n t pr e s e n t a t i o n . 215 CITY OF COLUMBIA HEIGHTS, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2010201120122013 General government: Resolutions approved by City Council11515915994 Ordinances adopted by City Council121553 Public safety: Police: Part I crimes (A)768755742674 Part II crimes (A)1,6831,5761,4081,326 Fire: Emergency medical calls (A)1,6641,7221,8391,942 Fire calls (A)846764752852 Inspections & Related Actions (A)5,7206,0735,4135,249 Public works: Street paving and patching (tons of asphalt)1,0548691,029224 Street sweeping (tons of debris)638712350574 Trees removed180180157284 Culture and recreation: Library: (E) Items in collection72,05571,30372,98576,658 Circulation131,885125,051129,624121,827 Reference inquiries14,35216,60114,54716,068 Parks and recreation: Athletics participants (B)1,5004,2994,2325,534 Other programs, estimated attendance (C)8,0008,0009,00010,485 Number of paid room rentals160177135139 Community development: Number of business licenses issued393334323346 Number of building permits issued (D)1,3511,2901,0581,303 Construction value of permits issued$14,481,712$7,986,467$7,203,199 $7,388,271 Water: Consumption (thousands of gallons)516,068 454,223 495,870 461,520 Sewer (sanitary): Wastewater (thousands of gallons, 12 months ended June 30)444,820 485,000 455,210 455,310 Miles of line cleaned/rodded/root-sawed 26 25 26 33 Refuse: Refuse (tons)6,770 6,789 6,563 6,684 Recycling (tons)1,699 1,605 1,610 1,690 Yardwaste (tons)1,100 1,270 1,270 1,169 Storm sewer: No operating indicators available not avail not avail not avail not avail Liquor: Number of units sold 1,028,160 1,060,150 1,103,790 1,045,188 (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 752. (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 216 Table 17 Fiscal Year 201420152016201720182019 98961141239194 2911575 6846734965645851,600 1,0521,0189348731,0221,109 1,8111,9801,9632,4852,4632,352 729787791419598432 5,0774,8555,2054,7194,6212,382 7826967036128691,227 540470448368269570 217282216243162103 78,13773,90757,53153,63853,50153,578 117,888109,018116,201123,812144,112137,978 13,20813,92312,80512,90914,70315,730 5,12510,83611,87113,69814,4157,891 10,63722,67926,98626,01626,48020,242 140153143235203201 339359348336329336 1,2122,1641,4581,4341,1081,176 $7,609,375$25,476,137$35,252,845$36,189,715$9,095,404$14,753,109 449,415455,527453,736447,155454,725437,890 467,680414,930423,920454,830443,630450,020 332628422624 6,6486,8957,2347,1276,5356,301 1,6701,8241,6331,7181,7471,955 1,2501,4501,3851,2311,0901,602 not availnot availnot availnot availnot availnot avail 1,038,9851,090,1311,106,3051,099,4971,150,4581,188,991 217 CITY OF COLUMBIA HEIGHTS, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program2010201120122013 General government: City hall square footage 28,53028,53028,53028,530 Public safety: Police Stations1111 Fire Stations 1111 Public Safety Bldg square footage47,08847,08847,08847,088 Public works: Office and shop square footage31,07531,07531,07531,075 Trunk highway miles3333 County road miles6666 City street miles62626262 Alley miles19191919 Culture and recreation: Libraries1111 Library square footage7,8967,8967,8967,896 Parks13131313 Playgrounds11111111 Gymnasiums square footage12,72612,72612,72612,726 Mtg & banquet rooms square footage22,00022,00022,00022,000 Community development: Senior high-rise apartments (A)145145145145 Water: Watermain miles66666666 Sewer: Sanitary sewer miles59595959 Refuse: Recycling centers1111 Storm sewer: Storm sewer miles34343434 Liquor: Retail stores owned3333 Retail stores leased - - - - (A)In 2015, Senior high-rise apartment building was sold 218 Table 18 201420152016201720182019 28,53028,53028,53028,53028,53028,530 111111 111111 47,08847,08847,08847,08847,08847,088 31,07531,07531,07531,07531,07531,075 333333 666666 626262626262 191919191919 111111 7,8967,89622,60022,60022,60022,600 131315151515 111112151515 12,72612,72612,72612,72612,72612,726 22,00022,00022,00022,00022,00022,000 145 - - - - - 66 66 66 66 66 66 59 59 59 59 59 59 111111 34 34 34 34 34 34 333333 - - - 219                                                 ‐ This page intentionally left blank ‐  220 IV. OTHER REQUIRED REPORTS SECTION 221                                                 ‐ This page intentionally left blank ‐  222 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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, 2019, 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 15, 2020. 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 contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. 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, insofar as they relate to accounting matters. 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 15, 2020 223                                                 ‐ This page intentionally left blank ‐  224 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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, 2019, 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 15, 2020. 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 225 City of Columbia Heights, Minnesota Report on Internal Control over Financial Reporting and on Compliance and Other Matters Page 2 any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Columbia Heights, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 15, 2020 226