HomeMy WebLinkAbout2019 EDA AML
55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com
To the Board of Commissioners
Columbia Heights Economic Development Authority
Columbia Heights, Minnesota 55421
In conjunction with our audit of the City’s financial statements, we have prepared this
report to assist the EDA board in analyzing the financial activity of the EDA.
Economic Development Authority
The EDA was established in January 1996. The EDA is a separate legal entity from the
City, however, because the Mayor and City Council members comprise the majority of the
EDA’s governing board, the EDA is reported in the City’s financial statements using the
blended method. The EDA financial statements are included as Special Revenue, Debt
Service and Capital Project Funds in the City’s CAFR.
A summary of the 2019 financial activity is as follows:
Revenue ExpendituresInterfund Cash
Fundand Otherand OtherTransfersIncrease (Decrease)Fund BalanceBalance
Fund No.SourcesUses(Net)in Fund Balance12/31/1912/31/19
Special Revenue:
EDA Administration Fund 204$255,506$144,897($16,000)$94,609$517,981$608,227
Debt Service:
Tax Increment Bonds 376 78,2553,445 - 74,810605,250261,756
Multi-Use Redevelopment Plan 385 36,7805,647 - 31,133180,798182,419
TIF Transition Block 389 55,37250,057 - 5,31571,22895,147
TIF 47th and Central Avenue 371 202,199231,546 - (29,347)528,251527,354
TIF Huset Park Area Fund 372 667,996619,875 - 48,121736,242864,384
TIF Central Valu Center Fund 374 - - - - (2,638) -
TIF 47th and Grand 375 - 1,042 - (1,042)(1,042) -
TIF Scattered Site 391 41,8837,662 - 34,221(140,242)200
Capital Project:
EDA Redevelopment Fund 408 445,19857,4251,082,626 1,470,3992,494,2388,700
Total $1,783,189$1,121,596$1,066,626$1,728,219$4,990,066$2,548,187
Columbia Heights
Economic Development Authority
Audit Management Letter
2
EDA Administration Fund (204)
This fund was established in 1996 to account for the revenues and expenditures of all
EDA activity not accounted for in other EDA funds.
A summary of the financial activity of this fund for 2017 through 2019 is as follows:
2017 2018 2019
Revenues:
Property taxes $291,487$441,773$244,276
Intergovernmental - 1,000 -
Fee/program revenue 5301,030 30
Investment income 3,9004,70011,200
Miscellaneous - 2,707 -
Total revenues 295,917451,210255,506
Expenditures:
Other:
Personal services 151,609180,724110,611
Other services and charges 20,77121,20333,938
Supplies 144 23 348
Total expenditures 172,524201,950144,897
Revenues over expenditures 123,393249,260110,609
Other financing sources (uses):
Transfers out:
General Fund (101)(136,216)(269,983)(16,000)
Total other financing sources (uses)(136,216)(269,983)(16,000)
Net change in fund balance (12,823)(20,723)94,609
Fund balance - January 1 456,918444,095423,372
Fund balance - December 31 $444,095$423,372$517,981
Columbia Heights
Economic Development Authority
Audit Management Letter
3
EDA Redevelopment Fund (408)
This fund was established in 2008. Its current function is to fund land acquisition and
other activities for redevelopment, primarily in the City’s commercial areas.
A summary of the financial activity of this fund for 2017 through 2019 is as follows:
2017 2018 2019
Revenue and other sources:
Taxes $ - $ - $241,014
Investment income 3,5009,000 9,400
Other revenues 194,784
Transfers in 1,025,445 121,280 1,082,626
Total revenue and other sources 1,028,945130,2801,527,824
Expenditures and other uses:
Other services and charges 4,25817,39357,425
Capital outlay - 134,848 -
Total expenditures and other uses 4,258152,24157,425
Net change in fund balance 1,024,687(21,961)1,470,399
Fund balance - January 1 21,1131,045,8001,023,839
Fund balance - December 31 $1,045,800$1,023,839$2,494,238
Columbia Heights
Economic Development Authority
Audit Management Letter
4
Debt Service Funds
The EDA maintains the following Debt Service Funds:
Tax TIFTIF 47th andTIFTIF Central TIF
Increment TransitionCentralHuset ParkValuTIF 47thScattered
BondsMURPBlockAvenueAreaCenterand GrandSiteTotal
Revenue and other sources:
Tax increments $ - $32,780$53,472$191,599$652,796$ - $ - $41,683$972,330
Investment income 12,1994,0001,90010,60015,200 - - 20044,099
Other revenues 66,056 - - - - - - - 66,056
Total revenue and other sources 78,25536,78055,372202,199667,996 0 041,8831,082,485
Expenditures and other uses:
Other services and charges 3,4451,9292,0184,6616,835 - 1,0421,06320,993
Debt service:
Principal - - - 220,000125,000 - - - 345,000
Interest and fiscal - - - 6,88564,848 - - 6,59978,332
Developer incentives - 3,71848,039 - 423,192 - - - 474,949
Total expenditures and other uses 3,4455,64750,057231,546619,875 01,0427,662919,274
Net change in fund balance 74,81031,1335,315(29,347)48,121 - (1,042)34,221163,211
Fund balance - January 1 530,440149,66565,913557,598688,121(2,638) - (174,463)1,814,636
Fund balance - December 31 $605,250$180,798$71,228$528,251$736,242($2,638)($1,042)($140,242)$1,977,847
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
June 15, 2020