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HomeMy WebLinkAbout1991 CAFRCITY OF COLUMBIA HEIGHTS, MINNESOTA Comprehensive Annual Financial Report Year Ended December 31, 1991 Prepared by: Finance Department CITY OF COLUMBIA HEIGHTS, MINNESOTA tComprehensive Annual Financial Report tTable of Contents Exhibit Page I. INTRODUCTORY SECTION Letter of Transmittal 1 - 7 List of Principal Officials 8 Organizational Chart 9 Certificate of Achievement 10 II. FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 11 -12 GENERAL PURPOSE FINANCIAL STATEMENTS ' (LIFTABLE STATEMENTS) 13 Combined Balance Sheet - All Fund Types and Account Groups A 14 - 17 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types B 18 -19 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual - General, Special Revenue, and Debt Service Funds C 20-21 Combined Statement of Revenues, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types D Yi 22 Combined Statement of Cash Flows - All Proprietary Fund Types E 23 -24 Notes to Financial Statements 25-64 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS General Fund 65 Comparative Balance Sheet F -1 66 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual F -2 67 -68 I Statement of Revenues - Budget (GAAP Basis) and Actual F -3 69 Statement of Expenditures - Budget (GAAP Basis) and Actual F -4 70-71 Special Revenue Funds 72 Combining Balance Sheet G -1 73 -74 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance G -2 75-76 Municipal State Aid Street Fund ' Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual G -3 77 Cable Television Fund ' Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual G-4 78 Paratransit Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual G -5 79 Recreation Contributed Projects ' Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance G -6 80 COLUMBIA HEIGHTS MINNESOTA CITY OF COLUM , Comprehensive Annual Financial Report , Table of Contents (continued) Exhibit Page COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (CONTINUED) Debt Service Funds 81 Combining Balance Sheet H -1 82 - 83 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance H -2 84- 85 Special Assessment Refunding Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -3 86 Tax Increment Bonds Fund Statement of Revenues, Expenditures, and Changes ' in Fund Balance - Budget (GAAP Basis) and Actual H -4 87 Tax Increment Bonds of 1984 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -5 88 Tax Increment Bonds of 1985 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -6 89 Tax Increment Refunding Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -7 90 Tax Increment Taxable Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -8 91 Tax Increment Capital Appreciation Bonds of 1990 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual H -9 92 Capital Project Funds 93 Combining Balance Sheet I -1 94-95 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance I -2 96-97 Enterprise Funds 98 Combining Balance Sheet J -1 99- 100 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings J -2 101 - 102 Combining Statement of Cash Flows J -3 103 - 106 Water Utility Fund Balance Sheet J-4 107 Statement of Revenues, Expenses, and Changes in Retained Earnings J -5 108 Statement of Cash Flows Sewer Utility Fund J -6 109- 110 Balance Sheet J -7 111 Statement of Revenues, Expenses, and Changes in Retained Earnings J -8 112 Statement of Cash Flows J -9 113 - 114 CITY OF COLUMBIA HEIGHTS, MINNESOTA Comprehensive Annual Financial Report Table of Contents (continued) Exhibit Page COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS (CONTINUED) Enterprise Funds (continued) Refuse Utility Fund Balance Sheet J -10 115 Statement of Revenues, Expenses, and Changes in Retained Earnings J -11 116 Statement of Cash Flows J -12 117 -119 Liquor Fund Balance Sheet J -13 119 Statement of Revenues, Expenses, and Changes in Retained Earnings J -14 120 Statement of Cash Flows J -15 121 - 122 Internal Service Funds 123 Combining Balance Sheet K -1 124 Combining Statement of Revenues, Expenses, and Changes in Retained Earnings K -2 125 Combining Statement of Cash Flows K -3 126- 127 Central Garage Fund Balance Sheet K -4 128 Statement of Revenues, Expenses, and Changes in Retained Earnings K -5 129 Statement of Cash Flows K-6 130- 131 Insurance Fund Balance Sheet K -7 132 Statement of Revenues, Expenses, and Changes in Retained Earnings K -8 133 Statement of Cash Flows K -9 134- 135 Agency Funds - Fiduciary Funds 136 Combining Statement of Changes in Assets and Liabilities - All Agency Funds L -1 137 - 138 Housing and Redevelopment Authority Funds Combining Balance Sheet - All Governmental Fund Types and Account Groups M -1 139- 140 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types M -2 141 - 142 ACCOUNT GROUP FINANCIAL SCHEDULES General Fixed Assets Group of Accounts 143 Comparative Schedule of General Fixed Assets by Source N -1 144 Schedule of General Fixed Assets - by Function and Activity N -2 145- 146 Schedule of Changes in General Fixed Assets - by Function and Activity N -3 147- 148 CITY OF COLUMBIA HEIGHTS, MINNESOTA Comprehensive Annual Financial Report Table of Contents (continued) ACCOUNT GROUP FINANCIAL SCHEDULES (CONTINUED) General Long -Term Debt Group of Accounts Statement of General Long -Term Debt Schedule of Debt Service Requirements to Maturity Combining Schedule of Bonds Payable SUPPLEMENTAL INFORMATION (UNAUDITED) Schedule of Sources and Uses of Public Funds for Housing and Redevelopment Authority Tax Increment Financing Districts Note - Sources of Funds for Housing and Redevelopment Authority Tax Increment Financing Districts III. STATISTICAL SECTION (UNAUDITED) Assessed Value, Tax Capacity, and Estimated Actual Value of All Taxable Property Tax Rates City Tax Levy Tax Levies and Tax Collections Special Assessment Collections General Governmental Revenues By Source General Governmental Expenditures By Function Principal City Officials Miscellaneous Statistical Facts Principal Taxpayers Statement of Legal Debt Margin Computation of Direct and Overlapping Debt - General Obligation Bonds Property Value, Construction, and Bank Deposits P -2 Table I II III IV V VI VII VIII IX X XI XII XIII 159- 160 161 - 162 163 164 165- 166 167 - 168 169- 170 171 - 172 173 174- 175 176 177 178 179 Exhibit Page 149 O -1 150 O -2 151 0-3 152- 157 r P -1 158 P -2 Table I II III IV V VI VII VIII IX X XI XII XIII 159- 160 161 - 162 163 164 165- 166 167 - 168 169- 170 171 - 172 173 174- 175 176 177 178 179 r CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Comprehensive Annual Financial Report Table of Contents (continued) '1 IV. OTHER REQUIRED REPORTS SECTION Independent Auditor's Report on Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance Independent Auditor's Report on the Internal Control Structure ' in Accordance With Government Auditing Standards Independent Auditor's Single Audit Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs Independent Auditor's Compliance Report Based on an Audit of the General Purpose Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Single Audit Report on Compliance With the General Requirements Applicable to Federal Financial Assistance Programs Independent Auditor's Report on Compliance With Specific rRequirements Applicable to Nonmajor Related Federal Financial Assistance Program Transactions Independent Auditor's Report on Compliance With ' Minnesota State Laws and Regulations Schedule of Findings r Page 180 181 182 - 183 184- 186 187 188 189 190 191 CITY OF COLUMBIA HEIGHTS 590 40th Avenue N. E. Columbia Heights, MN 55421 -3878 (612) 782 -2800 Mayor Donald J. Murzyn, Jr. Councilmembers Sean T. Clerkin Bruce G. Nawrocki Gary L. Peterson Robert W. Ruettimann City Manager Stuart W. Anderson To the Citizens of the City of Columbia Heights, Mayor, Councilmembers, and City Manager March 13, 1992 The Comprehensive Annual Financial Report of the City of Columbia Heights for the fiscal year ended December 31, 1991 is hereby submitted. The responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included. The Comprehensive Annual Financial Report is presented in four sections: Introductory, Financial, Statistical, and Other Required Reports. The Introductory Section includes this transmittal letter, the City's organizational chart, and a list of principal officials, and a reproduction of the Certificate of Achievement for the prior year. The Financial Section includes the general purpose financial statements, the combining and individual fund and account group statements and schedules, as well as the auditor's report on the financial statements and schedules. The Statistical Section includes selected financial and demographic information, generally presented on a multi -year basis. The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the United States Office of Management and Budget Circular A -128, Audits of State and Local Governments and a Minnesota Legal Compliance Audit. Information related to this single audit and compliance audit, including the Schedule of Federal Financial Assistance, is included in the Other Required Reports Section. This report includes all funds and. account groups of the City. The City provides a full range of services to its citizens. These services include, but are not limited to, police and fire protection; sanitation services; the construction and maintenance of highways, streets, and infrastructure; library; recreational facilities; cultural events; and general administrative services. In addition to general government activities, the City Council exercises, or has the ability to exercise, oversight of the Housing and Redevelopment Authority by appointment of Board members; therefore, this activity is included in the reporting entity. However, Columbia Heights Police and Fire Department Relief Associations, Independent School District No. 13, Six Cities Watershed District, and Rice Creek Watershed District have not met the established criteria for inclusion in the reporting entity and, accordingly, are excluded from this report. -1- "SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER ECONOMIC CONDITION AND OUTLOOK The City of Columbia Heights, which is 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 covers an area of 3.52 square miles and its population is 18,910 according to 1990 census figures. During 1991, the City experienced its first year of financial cutbacks. A substantial portion of the City's General Fund budget is funded by local government aid from the State of Minnesota. During their fiscal year ending June 30, 1991, the State experienced a large deficit and cut aid to cities. Current information indicates additional reductions are being planned for 1992, and 1993. The City Council and staff have reacted positively to the problem and have diligently strived to control expenditures in a manner to have the least negative impact on the citizens of the community. As a result of this effort, the General Fund again had a positive cash flow in 1991 in spite of the cut in local government aid. Redevelopment was again a major undertaking in 1991. During the year, the 45 -unit Parkview Villa South Addition to the 101 -unit highrise was completed and occupied. This complex provides housing for seniors and disabled persons. At year -end a loan had been approved through the Business Revolving Loan Fund, a fund created to make loans to new or expanding businesses within the City, which is expected to create at least 50 new jobs in Columbia Heights. The City is also participating in the first -time homebuyer program and has received an allocation of $1,477,000 from the Minnesota Housing Finance Agency. At year -end, five loans for a total of $538,589 had been finalized. Employment in the City is remaining stable and, as mentioned earlier, the City is promoting the expansion and creation of new business in the community. Denny's has moved into the former Sizzler Restaurant that had been vacant for more than two years. During the year economic conditions remained stable. The City continues to maintain a strong financial position and that trend is expected to continue. MAJOR INITIATIVES For the Year During the year, Stuart Anderson was named City Manager to succeed Robert Bocwinski who resigned in August 1990. Mr. Anderson was previously Chief of Police for the City. Captain Leonard Olson was named Acting Chief of Police in the interim. The City's 1990 Comprehensive Annual Financial Report was submitted to the Government Finance Officers' Association for review under the Certificate of Achievement Program for the first time. In December, the City was notified that the City had been awarded the Certificate of Achievement for Excellence in Financial Reporting award. Operations at the City's municipal liquor store have been converted to a new cash register, computer, and software system. The new hardware and software will greatly enhance our ability to control many of our costs and provide valuable historical data which will be used in determining buying policies. The Police and Fire Departments continue to be very active in community education and outreach programs. These programs are designed to educate the community in the areas of safety, crime, and fire -2- prevention. The Police Department continues to be very active in the D.A.R.E. Program (drug abuse resistance education) and officers volunteer many hours of their own time toward this program targeted at fifth grade children. For the Future The Police Department plans to further its community outreach programs to more effectively include businesses within the City. Maintenance of the City's infrastructure will remain a major concern. The Public Works Department will be addressing the issues of planning and monitoring to assist in the development of a comprehensive plan for replacement. The Housing and Redevelopment Authority will be converting to an in -house computer system in 1992 for maintenance of financial records. This system is compatible with the system that the City has effectively utilized for the past three years. This computer system will be run on an IBM 36. A new contractor was selected for City -wide residential refuse, recycling, and yard waste service beginning January 2, 1992. Service levels remain the same with no increase in rates. FINANCIAL INFORMATION The City of Columbia Heights' strong financial management continues to provide the residents of the City with initiatives designed to enhance its excellent financial position: 1. Investing funds not immediately needed for expenditures to maximize non -tax revenue. 2. Closely monitoring expenditures to ensure that activities are carried out within authorized levels. Internal Controls Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse; and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgements by management. Single Audit As a recipient of federal, state, and county financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation by management of the City. As part of the City's single audit, described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations. -3- Budgeting Controls In addition, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, Special Revenue Funds, and Debt Service Funds are included in the annual appropriated budget. Budgetary control is maintained by a system whereby purchase requests are pre - audited as to authorization and availability of funds prior to their release to vendors. Also inherent in this controlling function is the management philosophy that the existence of a particular item or appropriation in the approved budget does not automatically mean that it will or must be spent. The budget process has flexibility in that, where need has been adequately demonstrated, an adjustment can be made within a fund by the City Manager, or between funds by the City Council. Therefore, there is a constant review process and expenditures are not approved until it has been demonstrated that (1) adequate funds were appropriated, (2) the expenditure is still necessary, and (3) funds are available. As demonstrated by the statements and schedules included in the Financial Section of this report, the City continues to meet its responsibility for sound financial management. General Government Functions Revenues for City general government functions (General, Special Revenue, Debt Service, and Capital Project Funds) during 1991 totaled $9,361,091, which is a decrease of 7.21 % from 1990. Property taxes received for the City produced 37 % of general revenues compared to 31 % last year. The amount of revenues from various sources and their change from last year are shown below: Tax revenue increased due to an increase in the levy to compensate for the loss of a portion of local government aid. Intergovernmental revenue decreased due to the loss of some local government aid and the move of community education to the School District. The move of community education also accounts for the decrease in charges for services. -4- Amount of Increase Percent (Decrease) Revenue Source Amount of Total From 1990 Taxes $ 3,474,483 37% $ 322,856 Special assessments 458,544 5 (4,866) Licenses and permits 164,945 2 17,358 Intergovernmental 3,249,669 35 (630,889) Charges for services 424,546 4 (236,570) Fines and forfeitures 116,386 1 (7,119) Interest 718,025 8 (365,910) Other revenue 754,493 8 178,084 Total revenues $ 9,361,091 100% $ (727,056) Tax revenue increased due to an increase in the levy to compensate for the loss of a portion of local government aid. Intergovernmental revenue decreased due to the loss of some local government aid and the move of community education to the School District. The move of community education also accounts for the decrease in charges for services. -4- The expenditures for City general governmental purposes for 1991 totaled $13,072,882, a decrease of 35.7% from 1990. The total expenditures for major City functions and their change from last year are shown below: Amount of Increase The major decrease in debt service was due to over $6,995,000 being paid from escrow in 1990 for refunding of a bond issue. Public Works costs increased due to two major snowfalls in October and November of 1991. Parks and Recreation decreased due to the move of community education from the City to the School District. General Fund Balance The fund balance of the General Fund increased by 16.7% in 1991. The total fund balance of $3,033,095 indicates a strong financial position. It should be pointed out, however, that this represents working capital for general operations, which is used extensively during the first seven months of the year until current taxes and State aids are received. Enterprise Operations The City's enterprise operations are comprised of water, sewer, and refuse utilities and municipal liquor operations. Total sales from the City's off -sale liquor locations amounted to $4,789,343 in 1991. This resulted in a total net operating income of $394,719, an increase of 51 % over 1990. Liquor operations are expected to show growth and profitability in the future. The Water and Refuse Utilities had operating incomes of $49,790 and $131,441, respectively, for the year. The Sewer Utility experienced an operating loss of $224,007 in 1991. The small gain experienced by the Water Utility and the loss experienced by the Sewer Utility can be attributed to increased operating costs and the fact that rates have not been increased since 1982. Water and sewer rates will be increased in 1992 to offset increased costs. Refuse rates were increased in 1991 to keep pace with the increased landfill costs. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. -5- Percent (Decrease) Expenditure Function Amount of Total From 1990 General government $ 1,285,382 10% $ (144,245) Public safety 2,538,215 19 (13,328) Public works 891,133 7 128,491 Sanitation 108,108 1 (76,519) Parks and recreation 954,236 7 (560,617) Library 390,251 3 21,888 Other and contingencies 263,733 2 94,654 Capital outlay 2,691,141 21 1,136,258 Debt service 3,950,683 30 (7,843,717) Total Expenditures $ 13,072,882 100% $ (7,257,135) The major decrease in debt service was due to over $6,995,000 being paid from escrow in 1990 for refunding of a bond issue. Public Works costs increased due to two major snowfalls in October and November of 1991. Parks and Recreation decreased due to the move of community education from the City to the School District. General Fund Balance The fund balance of the General Fund increased by 16.7% in 1991. The total fund balance of $3,033,095 indicates a strong financial position. It should be pointed out, however, that this represents working capital for general operations, which is used extensively during the first seven months of the year until current taxes and State aids are received. Enterprise Operations The City's enterprise operations are comprised of water, sewer, and refuse utilities and municipal liquor operations. Total sales from the City's off -sale liquor locations amounted to $4,789,343 in 1991. This resulted in a total net operating income of $394,719, an increase of 51 % over 1990. Liquor operations are expected to show growth and profitability in the future. The Water and Refuse Utilities had operating incomes of $49,790 and $131,441, respectively, for the year. The Sewer Utility experienced an operating loss of $224,007 in 1991. The small gain experienced by the Water Utility and the loss experienced by the Sewer Utility can be attributed to increased operating costs and the fact that rates have not been increased since 1982. Water and sewer rates will be increased in 1992 to offset increased costs. Refuse rates were increased in 1991 to keep pace with the increased landfill costs. During the year, the City Council designated funds from the Sewer and Water Utilities for capital equipment replacement and construction. -5- Internal Service Funds The City maintains two Internal Service Funds -- the Central Garage Fund and the Insurance Fund. The Central Garage Fund is a self - sustaining fund providing service to other departments within the City and for which user fees are paid by the using department. In 1991, the Central Garage Fund had a small net loss. The Insurance Fund was established at a time when the City did not carry commercial liability insurance to pay for any claims arising during that time period. The fund is currently maintained to fund deductible amounts and to pay any claims that may arise in the future that exceed the current coverage. Agency Funds Agency Funds are used to account for assets held by the City in an agent capacity for individuals, private organizations, other governments, or other funds. The City has Agency Funds for deferred compensation. Dermit surcharize, and escrow. Cash Management Cash temporarily idle during the year was invested in demand deposits, certificates of deposit, obligations of the U.S. Treasury, repurchase agreements, and commercial paper. The average yield on investments for the year was 7.22 %. The City's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by federal depository insurance or collateralized. Debt Administration At December 31, 1991, the City had a number of debt issues outstanding. These issues included $19,154,721 of General Obligation Tax Increment Bonds and $1,185,000 of Permanent Improvement Special Assessment Debt with City commitment. The City issued $6,670,000 General Obligation Tax Increment Refunding Bonds of 1991. These bonds were issued to refund the Tax Increment Refunding Bonds of 1987. Bond proceeds were placed in an escrow account until the call date, March 1, 1994. General Obligation Tax Increment Bonds of 1985 were called in 1991 in the amount of $1,800,000 and were be paid from escrowed funds. Risk Management The City maintains commercial insurance coverage for liability, property, liquor liability, and workers' compensation. As previously stated, the City maintains an Internal Service Fund for insurance. The Insurance Fund maintains a reserved balance to provide funds if needed for excess claims or deductibles. This fund charges individual departments for allocation of premiums and for claims incurred. During 1991, the City settled a bodily injury claim for an injury sustained at a liquor store that has since closed for $110,000. There were no significant claims pending at year -end. M OTHER INFORMATION Independent Audit State Statutes require an annual audit by independent certified public accountants. The accounting firm of Malloy, Karnowski, Radosevich & Co., P.A. was selected by the City. In addition to meeting the requirements set forth in State Statutes, the audit was also designed to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A -128. The auditor's report on the general purpose financial statements and combining and individual fund and account group statements and schedules is included in the Financial Section of this report. Awards The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the year ended December 31, 1990. This was the first report submitted by the City for consideration for this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable report that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements 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, '1 " � D, yyLL' /Vr, William J. Elrite Finance Director C/. lea -'tom l� June V. Johnston Assistant Finance Director -7- CITY OF COLUMBIA HEIGHTS, MINNESOTA List of Principal Officials Year Ended December 31, 1991 CITY COUNCIL Edward M. Carlson, Mayor Donald J. Murzyn, Jr., Mayor -Elect Gary L. Peterson Councilmember Bruce G. Nawrocki Councilmember Sean T. Clerkin Councilmember Robert W. Ruettimann Councilmember CITY MANAGER Stuart Anderson FINANCE DEPARTMENT William J. Elrite, Finance Director June V. Johnston, Assistant Finance Director CITY OF COLUMBIA HEIGHTS ORGANIZATIONAL CHART vd M. Carlson Gary L. Peterson Bruce G. Nawrocki oil Secretary *: Sean T. Clerkin ne Student Robert W. Ruettim: a�a>_ City Manager: Stuart W. Anderson Asst to Ci Ma POLICE (ADMINISTERED BY MAYOR) Acting Police Chief: Leonard Olson Secretary 11 Clerk- Typist II Police Captain ' Patrol Sergeants (4) Patrol Officers(15) Comm. Service Officers (2 FT & 2 PT) Sr. Recorts Technician ' Secretary II -A (2) Clerk- Typist II (PT) Fire Chief: Charles Kewatt Secretary II (PT) Deputy Fire Chief Firefighters (6) Volunteer Firefighters (25) LIBRARY Library Director: M. Rebecca Loader Clerk- Typist II (2) Library Supervisor (5 PT) Page (8 PT) Choreperson (PT) Adult Service Specialist Children's Librarian Recreation Director: Mark Casey Clerk- Typist II (2) Senior Citizen Coordinator Head Custodian Custodian II (2 PT) Custodian 1(2 PT) Also serves in the capacity of Deputy City Clerk under the Finance Director /City Clerk/Treasurer Accounting Clerk II Clerk - Typist 11 (PT) Building Inspector Asst Building Inspector Secretary II Charter HRA Police, Fire & Civil Service Downtown Development Insurance Traffic Cable Communications Planning & Zoning Human Services Park Merit Library Science Technology & Finance Director/City Clerk/Treasurer: William Elrite Secretary 11 (PT) Assistant Finance Director Accounting Coordinator Payroll/Accounting Clerk Utilities Accounting Clerk II Liquor Acct Clerk II (2 PT) Utilities Accounting Clerk I Switchboard Operator /Receptionist Meter Readers (2 PT) Liquor Operations Manager Asst Operations Managers (2) Retail Clerks (17 PT) Liquor Store Supervisor Public Works Director/City Engineer: Fred Salsbury Secretary II -A Clerk- Typist II Assistant City Engineer Engineering Technician IV Engineering Technician 111 Engineering Technician II Public Works Superintendent Foreman (3) Maintenance 111 (1) Maintenance II (6) Maintenance 1(9) Foreman - Vehicle Maintenance Maintenance III - Mechanic Maintenance III- Bodymen/Pointer Admin. Assistant - Public Works Clerical /Purchasing Clerk In Certificate of Achievement for Excellence in Financial Reporting Presented to City of Columbia Heights, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1990 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFR's) achieve the highest standards in government accounting and financial reporting. President Lrmt epo;e Executive Director -10- MALLOY KARNOWSKI RADOSEVICH &CO.,P.A. INDEPENDENT AUDITOR'S REPORT City Council and Residents City of Columbia Heights Columbia Heights, Minnesota PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1991, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management; as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Columbia Heights, Minnesota, at December 31, 1991, and the results of its operations, changes in fund balance, and cash flows of the Proprietary Fund Types for the year then ended, in conformity with generally accepted accounting principles. As discussed in Note 1 to the financial statements, the City adopted the Governmental Accounting Standards Board Statement on the Financial Reporting Entity for 1991. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account groups statements and financial schedules as listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. -11- 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 (continued) ' The supplemental information and statistical information listed in the table of contents is not necessary for a fair presentation of the general purpose financial statements, but is presented as additional analytical ' data. This information is unaudited and we do not express an opinion on it. IMarch 13, 1992 -12- GENERAL PURPOSE FINANCIAL STATEMENTS These general purpose financial statements are part of the Comprehensive Annual Financial Report, presenting only aggregate data by fund type and account group, together with notes to the financial statements, and constitutes "fair presentation in conformity with generally accepted accounting principles." ' It is felt that these general purpose financial statements will be a benefit to users requiring less detailed information about our City's finances. -13- CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Combined Balance Sheet All Fund Types and Account Groups As of December 31, 1991 ' (with Primary Government Comparative Totals as of December 31, 1990) Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service , Assets and Other Debits Assets Cash and investments Cash and cash equivalents S 2,941,048 $ 231,539 $ - $ - $ 367,155 $ 100,267 Temporary investments 95,514 - 3,068,742 3,631,273 3,043,861 331,191 Total cash and investments 3,036,562 231,539 3,068,742 3,631,273 3,411,016 431,458 Cash and investments held in escrow - - 6,543,268 - - - Receivables Accounts 9,177 36,310 - 4,308 681,357 3,503 Special assessments 591,889 - 89,703 554,326 - - Taxes 141,263 - 355,719 - - - Interest 13,024 1,785 16,960 32,797 25,071 3,266 Loans - - - - - - Due from other governmental units 83,964 57,758 - 147,438 222,312 - Due from other funds - 42,907 - 199,186 - - Due from primary government - - - - - - Due from component units 11,665 - - - - - Prepaid expense 59 - - - 56,821 64,925 Assets held by deferred compensation trustees - - - - - - Inventory, at cost - - - - 487,980 80,520 Fixed assets, net of accumulated depreciation - - - - 3,611,248 350,148 Other assets - - - - - - Other debits Amount available in Debt Service Funds - - - - - - Amount to be provided for retire- ment of general long-term debt - - - - - - Amount to be provided for compensated absences - - - - - - Amount to be provided for notes payable - - - - - - Total assets and other debits $ 3,887,603 $ 370,299 S 10,074,392 S 4,569,328 S 8,495,805 $ 933,820 See notes to financial statements -14- Exhibit A $ 10,880 $ - $ - $ 3,650,889 Totals $ 727,652 $ 4,378,541 - - (Memorandum 10,170,581 12,520,502 Totals Only) Fiduciary - (Memorandum Only) Component Reporting Fund Type Account Groups Primary Government Unit Entity 6,543,268 1,800,000 Housing and 6,543,268 222 - General General RedeveH 689,882 278 Fixed Long -Term opment - Agency Assets Debt 1991 1990 Authority 1991 $ 10,880 $ - $ - $ 3,650,889 $ 2,567,961 $ 727,652 $ 4,378,541 - - - 10,170,581 12,520,502 - 10,170,581 10,880 - - 13,821,470 15,088,463 727,652 14,549,122 - - - 6,543,268 1,800,000 - 6,543,268 222 - - 734,877 689,882 278 735,155 - - - 1,235,918 1,320,491 - 1,235,918 - - - 496,982 321,603 3,527 500,509 - - - 92,903 331,501 469 93,372 - - - - - 399,404 399,404 - - - 511,472 631,039 200,951 712,423 - - - 242,093 289,150 32,173 274,266 - - - - - 6,303 6,303 - - - 11,665 9,407 - 11,665 - - - 121,805 123,490 5,807 127,612 940,934 - - 940,934 719,952 154,615 1,095,549 - - - 568,500 523,380 - 568,500 - 12,355,567 - 16,316,963 16,037,633 5,032,349 21,349,312 - - - - - 98,413 98,413 - - 9,603,694 9,603,694 5,175,702 - 9,603,694 - - 10,811,471 10,811,471 11,289,019 - 10,811,471 - - 329,244 329,244 295,051 9,874 339,118 - - 16,609 16,609 17,177 - 16,609 $ 952,036 $ 12,355,567 S 20,761,018 $ 62,399,868 $ 54,662,940 $ 6,671,815 $ 69,071,683 (continued) -15- CITY OF COLUMBIA HEIGHTS, MINNESOTA Combined Balance Sheet (continued) All Fund Types and Account Groups As of December 31, 1991 (with Primary Government Comparative Totals as of December 31, 1990) Liabilities, Equity, and Other Credits Liabilities Accounts payable Contracts payable, retained percentage Notes payable Accrued salaries and withholdings payable Deferred compensation payable Due to other governmental units Due to other funds Due to primary government Due to component units Deferred revenue Bonds payable Accrued interest payable Deposits Insurance and taxes in escrow Compensated absences payable Other liabilities Total liabilities Equity and other credits Contributed capital Investment in general fixed assets Retained earnings Reserved Unreserved Fund balance Reserved Unreserved Designated Undesignated Total equity and other credits Total liabilities, equity, and other credits See notes to financial statements Proprietary Governmental Fund Types Fund Types Special Debt Capital Internal General Revenue Service Project Enterprise Service $ 77 „596 $ 54,270 $ 168 - 70,240 139 2,259 - - 42,907 3,885 - 700,360 - 97,316 854,508 $ 20,156 S 271,753 $ 17,232 15,349 - - - 486 57,376 22,029 - - 49,576 - 199,186 - - 2,418 - - 412,755 554,326 - - 57,943 - - - 470,698 791,921 378,705 39,261 1,629,109 188,849 - - - 3,049,702 479,712 - - - - 3,438,289 225,998 95,366 - - - - - 2,937,729 3,342 9,603,694 528,739 - - - 269,641 - 3,248,668 - - 3,033,095 272,983 9,603,694 3,777,407 8,117,100 894,559 $ 3,887,603 $ 370,299 $ 10,074,392 $ 4,569,328 $ 8,495,805 S 933,820 -16- Exhibit A $ _ $ _ $ - $ 441,007 Totals $ 217,100 $ 658,107 - (Memorandum 15,517 29,595 Totals Only) Fiduciary - 16,609 (Memorandum Only) Component Reporting Fund Type Account Groups Primary Government Unit Entity 150,270 126,459 Housing and 157,495 940,934 General General Redevel- 719,952 154,615 Fixed Long -Term opment _ - Agency Assets Debt 1991 1990 Authority 1991 $ _ $ _ $ - $ 441,007 S 342,813 $ 217,100 $ 658,107 - - - 15,517 29,595 - 15,517 - - 16,609 16,609 17,177 - 16,609 - - - 150,270 126,459 7,225 157,495 940,934 - - 940,934 719,952 154,615 1,095,549 _ _ - 51,835 171,772 34,069 85,904 - - - 242,093 289,150 32,173 274,266 - - 11,665 11,665 - - - 6,303 235,695 - 6,303 - - - 1,667,441 1,640,014 409,979 2,077,420 - - 20,415,165 20,415,165 16,464,721 - 20,415,165 _ - - 57,943 57,943 - 57,943 6,632 - - 6,632 6,332 9,105 15,737 _ _ - - - 7,121 7,121 - - 329,244 329,244 295,051 9,874 339,118 4,470 - - 4,470 12,996 - 4,470 952,036 - 20,761,018 24,345,463 20,409,670 892,926 25,238,389 - - - 1,817,958 1,883,187 - 1,817,958 - 12,355,567 - 12,355,567 12,047,697 5,032,349 17,387,916 - - - 3,529,414 3,471,632 - 3,529,414 - - - 3,664,287 3,460,625 - 3,664,287 - - - 95,366 - 278,957 374,323 - - - 13,073,504 10,219,035 - 13,073,504 - - - 3,518,309 3,171,094 467,583 3,985,892 - 12,355,567 - 38,054,405 34,253,270 5,778,889 43,833,294 S 952,036 $ 12,355,567 S 20,761,018 $ 62,399,868 S 54,662,940 $ 6,671,815 $ 69,071,683 -17- CTTY OF COLUMBIA HEIGHTS, MINNESOTA Combined Statement of Revenues, Expenditures, and Changes in Fund Balance All Governmental Fund Types Year Ended December 31, 1991 (with Primary Government Comparative Totals for Year Ended December 31, 1990) Revenues Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest Other revenues Total revenues Expenditures Current General government Public safety Public works Sanitation Parks and recreation Library Other Contingencies Capital outlay Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Bond proceeds Forgiveness of debt Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses Fund balance Beginning of year Residual equity transfers End of year See notes to financial statements 1,285,382 Special Debt Capital General Revenue Service Project $ 2,225,803 $ - $ 1,248,680 $ - - - 277,171 181,373 164,945 - - - 3,040,675 208,994 - - 340,184 84,362 - - 116,386 - - - 127,887 17,536 250,563 322,039 143,024 91,315 4,276 515,878 6,158,904 402,207 1,780,690 1,019,290 1,285,382 - - - 2,538,215 - - - 891,133 - - - 108,108 - - - 954,236 - - - 390,251 - - - - 187,915 72,015 - 3,803 - - - - 88,777 - 2,602,364 - - 3,950,683 - 6,171,128 276,692 4,022,698 2,602,364 (12,224) 125,515 (2,242,008) (1,583,074) 6,670,000 - 570,988 41,980 3,381,804 200,788 (124,300) 20( 1,703) (3,381,804) (148,912) 446,688 15( 9,723) 6,670,000 51,876 434,464 (34,208) 4,427,992 (1,531,198) 2,598,631 307,191 5,175,702 5,308,605 $ 3,033,095 $ 272,983 $ 9,603,694 $ 3,777,407 -18- Exhibit B 1,285,382 1,429,627 - Totals 2,538,215 2,551,543 - (Memorandum Totals 762,642 - Only) (Memorandum Only) Component Reporting Primary Government Unit Entity - 954,236 Housing and 368,363 - 390,251 Redevel- 166,007 507,614 767,544 opm ent 3,072 1991 1990 Authority 1991 $ 3,474,483 $ 3,151,627 $ 57,707 $ 3,532,190 458,544 463,410 - 458,544 164,945 147,587 - 164,945 3,249,669 3,880,558 531,737 3,781,406 424,546 661,116 - 424,546 116,386 123,505 - 116,386 718,02.5 1,083,935 57,318 775,343 754,493 576,409 2,077,388 2,831,881 9,361,091 10,088,147 2,724,150 12,085,241 1,285,382 1,429,627 - 1,285,382 2,538,215 2,551,543 - 2,538,215 891,133 762,642 - 891,133 108,108 184,627 - 108,108 954,236 1,514,853 - 954,236 390,251 368,363 - 390,251 259,930 166,007 507,614 767,544 3,803 3,072 - 3,803 2,691,141 1,554,883 2,084,671 4,775,812 3,950,683 11,794,400 125,905 4,076,588 13,072,882 20,330,017 2,718,190 15,791,072 (3,711,791) (10,241,870) 5,960 (3,705,831) 6,670,000 4,763,724 - 6,670,000 - - 183,617 183,617 4,195,560 14,054,464 - 4,195,560 (3,856,719) (13,222,269) - (3,856,719) 7,008,841 5,595,919 183,617 7,192,458 3,297,050 (4,645,951) 189,577 3,486,627 13,390,129 18,072,520 556,963 13,947,092 - (36,440) - - $ 16,687,179 $ 13,390,129 $ 746,540 $ 17,433,719 -19- CITY OF COLUMBIA HE[GHTS, MINNESOTA Combined Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual General, Special Revenue, and Debt Service Funds Year Ended December 31, 1991 General Fund Variance Favorable Budget Actual (Unfavorable) Revenues Taxes $ 2,233,207 $ 2,225,803 $ (7,404) Special assessments - - - Licenses and permits 144,110 164,945 20,835 Intergovernmental 3,017,328 3,040,675 23,347 Charges for services 399,120 340,184 (58,936) Fines and forfeitures 129,200 116,386 (12,814) Interest 158,000 127,887 (30,113) Other revenues 24,300 143,024 118,724 Total revenues 6,105,265 6,158,904 53,639 Expenditures Current General government 1,297,515 1,285,382 12,133 Public safety 2,700,080 2,538,215 161,865 Public works 884,387 891,133 (6,746) Sanitation 141,376 108,108 33,268 Parks and recreation 1,131,142 954,236 176,906 Library 410,923 390,251 20,672 Other - - - Contingencies 5,000 3,803 1,197 Capital outlay - - - Debt service - - - Total expenditures 6,570,423 6,171,128 399,295 Excess (deficiency) of revenues over expenditures (465,158) (12,224) 452,934 Other financing sources (uses) Operating transfers in 522,841 570,988 48,147 Operating transfers (out) (85,000) 124,300 3( 9,300) Total other financing sources (uses) 437,841 446,688 8,847 Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses (27,317) 434,464 461,781 Fund balance Beginning of year 2,598,631 2,598,631 - End of year $ 2,571,314 $ 3,033,095 $ 461,781 See notes to financial statements -20- Exhibit C Special Revenue Funds_ 17,760 Debt Service Fund 72,015 (12,015) 510,400 Variance 432,643 - Variance - - Favorable - 3,811,047 Favorable Budget Actual (Unfavorable) _ Budget Actual (Unfavorable) $ - $ - $ - $ 1,060,000 $ 1,248,680 $ 188,680 - - - 95,366 277,171 181,805 614,000 208,994 (405,006) - - - 75,500 84,362 8,862 - - - 8,500 17,536 9,036 162,433 228,976 66,543 - 26,758 26,758 - 4,276 4,276 698,000 337,650 (360,350) 1,317,799 1,759,103 441,304 174,381 156,621 17,760 60,000 72,015 (12,015) 510,400 77,757 432,643 - - - - - - 3,811,047 3,802,364 8,683 684,781 234,378 450,403 3,871,047 3,874,379 (3,332) 13,219 103,272 90,053 (2,553,248) (2,115,276) 437,972 5,000 40,480 35,480 3,748,614 3,381,804 (366,810) 99,11. 2( 01,703) 102,E (3,389,367) (3,381,804) 7,563 (94,115) 161,223 (67,108) 359,247 - 359,247 (80,896) (57,951) 22,945 (2,194,001) (2,115,276) 78,725 283,207 283,207 - 5,175,702 5,175,702 - $ 202,311 $ 225,256 $ 22,945 $ 2,981,701 $ 3,060,426 $ 78,725 -21- CITY OF COLUMBIA HEIGHTS, MINNESOTA Combined Statement of Revenues, Expenses, and Changes in Retained Earnings All Proprietary Fund Types Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating revenues Charges for services Charges for sales Intergovernmental Total operating revenues Operating expenses Costs of sales, services, and goods sold Operating expense Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expense) Interest income Miscellaneous revenue Miscellaneous expense Total nonoperating revenues (expense) Income (loss) before operating transfers Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Retained earnings Enterprise Internal Service $ 2,327,480 $ 283,411 5,567,291 60,231 50,458 - 7,945,229 343,642 4,938,566 286,688 2,411,939 159,903 242,781 29,702 7,593,286 476,293 351,943 (132,651) Exhibit D Totals (Memorandum Only) 1991 1990 $ 2,610,891 $ 2,383,518 5,627,522 5,012,024 50,458 103,465 8,288,871 7,499,007 5,225,254 5,185,753 2,571,842 1,801,047 272,483 211,204 8,069,579 7,198,004 219,292 301,003 253,419 32,067 285,486 360,448 9,480 22,616 32,096 123,391 1,818 - (1,818) (2,655) 261,081 54,683 315,764 481,184 613,024 (77,968) 535,056 782,187 217,278 42,800 260,078 3,100,000 587,420 11,499 (598,919) (4,278,860) 370,142 31,301 (338,841) (1,178,860) 242,882 (46,667) 196,215 (396,673) 65,229 - 65,229 65,229 Beginning of year, as previously stated 6,179,880 752,377 6,932,257 7,046,054 Adjustment for improvements - - - 181,207 Beginning of year, as restated 6,179,880 752,377 6,932,257 7,227,261 Residual equity transfers - - - 36,440 End of year $ 6,487,991 $ 705,710 $ 7,193,701 $ 6,932,257 See notes to financial statements -22- Exhibit E ' CITY OF COLUMBIA HEIGHTS, MINNESOTA Combined Statement of Cash Flows All Proprietary Fund Types ' Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) ' Totals Internal (Memorandum Only) ' Enterprise Service 1991 1990 Cash flows from operating activities Cash received from customers $ 7,966,363 $ 343,014 $ 8,309,377 $ 7,429,358 Cash paid to suppliers for goods and services (6,730,510) (333,223) (7,063,733) (6,287,834) Cash payments to employees for services (617,437) (113,736) (731,173) (676,808) Miscellaneous revenue 9,480 22,616 32,096 123,391 Miscellaneous expense (1,818) - (1,818) (2,655) Net cash provided (used) by operating activities 626,078 (81,329) 544,749 585,452 ' Cash flows from noncapital financing activities Residual equity transfers in - - - 36,440 Operating transfers in from other funds - 42,800 42,800 125,000 Operating transfers (out) to other funds _ (370,142 ) (11,499 (381,641) (1,303,860) Net cash provided (used) by noncapital financing activities (370,142) 31,301 (338,841) (1,142,420) ' Cash flows from capital and related financing activities Acquisition of fixed assets (238,938) (5,005) (243,943) (578,778) Disposition of fixed assets 1 5,240 Capital contribution - - - 94,196 Net cash used by capital and related financing activities (238,938) (5,005) (243,943) (479,342) Cash flows from investing activities Net change in investments (143,861) (11,191) (155,052) 700,000 Interest earned on investments 337,880 38,258 376,138 361,440 Net cash provided by investing activities 194,019 27,067 221,086 1,061,440 Net increase (decrease) in cash and cash equivalents 211,017 (27,966) 183,051 25,130 Cash and cash equivalents Beginning of year 156,138 128,233 284,371 259,241 End of Y ear $ 367,155 $ 100,267 $ 467,422 $ 284,371 (continued) See notes to financial statements ' -23- CITY OF COLUMBIA HEIGHTS, MINNESOTA Combined Statement of Cash Flows (continued) All Proprietary Fund Types Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Enterprise Reconciliation of operating income (loss) to net 32,096 cash provided (used) by operating activities — Operating income (loss) $ 351,943 Adjustments to reconcile operating 272,483 income (loss) to net cash provided (628) (used) by operating activities (42,410) Miscellaneous revenue 9,480 Miscellaneous expense (1,818) Depreciation expense 242,781 Changes in assets and liabilities 582 Accounts receivable (29,181) Due from other governmental units 51,107 Inventory, at cost (44,769) Prepaid expenses (5,179) Accounts payable 49,847 Accrued salaries and 325,457 withholdings payable 5,120 Due to other governmental units _ (3,253) Total adjustments 274,135 Net cash provided (used) Exhibit E Totals Internal (Memorandum Only) $ (132,651) $ 219,292 $ 301,003 22,616 32,096 123,391 — (1,818) (2,655) 29,702 272,483 211,204 (628) (29,809) (42,410) — 51,107 (29,302) (351) (45,120) (25,404) 5,761 582 (14,001) (10,445) 39,402 40,996 4,667 9,787 5,248 — (3,253) 17,382 51,322 325,457 284,449 by operating activities $ 626,078 $ (81,329) $ 544,749 $ 58 45452 See notes to financial statements -24- CITY OF COLUMBIA HEIGHTS, MINNESOTA iNotes to Financial Statements December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Columbia Heights was incorporated in 1898. The City is governed by a Council composed of an elected mayor and four councilmembers. The Council exercises legislative authority and determines ' all matters of policy. The City Manager, who is appointed by the Council, is responsible for the proper administration of all affairs relating to the City. 1 The financial reporting policies of the City conform to generally accepted accounting principles. The following is a summary of significant policies. A. Financial Reporting Entity In accordance with the Codification of Governmental Accounting and Reporting Standards, Section 2100, ' "Defining the Reporting Entity," for financial reporting purposes, the City's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget review, approval of property tax levies, outstanding debt secured by the City's full faith and credit or revenues, responsibility for funding deficits, and other. As a result of applying the criteria of Section 2100, certain ' organizations have been included or excluded from the City's financial statements as a component unit as follows: Included Entity Reason for Inclusion Housing and Redevelopment The Mayor appoints the governing authority and ' Authority (HRA) the City exercises financial oversight. Excluded Entity Reason for Exclusion Watershed Districts Rice Creek The Watershed Districts are governed by their own elected authorities and are supported Six Cities through their own tax levy authority granted by the Minnesota Statutes. Independent School School districts are totally independent of all District No. 13 other governing jurisdictions according to Minnesota Statutes. They are governed by their own elected authorities and are supported through their own tax levy authority. -25- CITY OF COLUMBIA HEIGHTS, MINNESOTA , Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Excluded Entity Reason for Exclusion ' Police and Fire Department The Associations are funded in accordance with Relief Associations Minnesota Statutes, whereby State aids flow to the Associations; tax levies are determined by the Associations and are only reviewed by the City. The Associations may certify tax levies to the County directly if the City does not carry out this function. The Associations are, therefore, able to fund their programs independently of the City. The financial position and results of operations of the Housing and Redevelopment Authority (HRA) Component Unit are presented using the discrete method by including a separate column in the general purpose financial statements. The HRA is reported as a separate column to emphasize that it is legally separate from the City. This component unit includes Governmental and Agency Funds and Account Groups using the modified accrual basis of accounting. Separate financial statements for the Housing and Redevelopment Authority may be obtained by contacting the City of Columbia Heights, Minnesota. The City has various citizen commissions and boards which act on a voluntary basis as advisors to the City Council on specific matters. The costs of these commissions and boards are limited to the administrative support which is funded by the City and included in this financial report. B. Basis of Presentation - Fund Accounting The accounts of the City of Columbia Heights are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various funds and account groups are grouped in this report into seven generic fund types, three broad fund categories, and two account groups. A description of the fund types and account groups used by the City follows. -26- 1 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1) Governmental Fund Types a) General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 1 b) Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. c) Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of all general long -term debt principal, interest, and related ' costs. d) Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities, other than those ' financed by Proprietary Funds. 2) Proprietary Fund Types a) Enterprise Funds - Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises -- where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. b) Internal Service Funds - Internal Service Funds are used to account for the costs of providing goods or services to other departments or agencies of the City. Charges to other City departments are made to support these activities. 3) Fiduciary Fund Type a) Agency Funds - Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 4) Account Groups a) General Fixed Assets Account Group - This account group is used to account for all of the fixed assets of the Governmental Fund Types. b) General Long -Term Debt Account Group - This account group is used to account for all of the City's long -term obligations, other than those liabilities of Proprietary Fund Types. 1 -27- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting Basis of accounting refers to the time at which revenues and expenditures are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All Governmental and Agency Funds are reported on the modified accrual basis of accounting. Generally, only current assets and current liabilities are included in these funds. Governmental Funds use the "financial flow" measurement focus. Consequently, their revenues are recognized when they become measurable and available as net current assets. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenue sources susceptible to accrual include property taxes, intergovernmental revenue, and interest earned on investments. Expenditures are recognized under the modified accrual basis of accounting when a liability is incurred, except for principal and interest on general long -term obligations which are recognized when due. Compensated absences are considered expenditures when paid to employees. Proprietary Funds are accounted for using the "capital maintenance" measurement focus and are reported on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recorded at the time liabilities are incurred. 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 I for the General, certain Special Revenue, and certain Debt Service Funds. 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; therefore, the legal level of budgetary control is at the fund level. Formal budgetary integration is employed as a management control device during the year. Budget revisions are authorized by the City Council in accordance with the City Charter at the request of the City Manager. The City does not use encumbrance accounting. -28- CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Amounts shown in the financial statements represent the original budgeted amounts and the following increases (decreases) in appropriations: General Fund $ (198,903) ' Special Revenue Funds Municipal State Aid State Aid Maintenance 75,632 1 State Aid Construction 284,803 Cable Television 2,090 Paratransit 43,633 Debt Service Funds (149,512) 0. S7 7,11 The City did not budget for all Special Revenue Funds or Debt Service Funds and, accordingly, the applicable columns of the Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - Budget and Actual excludes amounts relating to the unbudgeted funds. A reconciliation of actual results for budgeted and unbudgeted Special Revenue Funds and Debt Service Funds follows: Debt Service Funds Budgeted funds Unbudgeted fund Tax Increment Refunding Bonds of 1991 Total Debt Service Funds $ 5,175,702 $ 1,759,103 $ 3,874,379 $ - $ 21,587 148,319 6,670,000 - $ 3,060,426 6,543,268 $ 5,175,702 $ 1,780,690 $ 4,022,698 $ 6,670,000 $ - $ 9,603,694 -29- Total Other Fund Balance Financing Residual Fund Balance December 31, Total Total Sources Equity December 31, Fund 1990 Revenues Expenditures (Uses) Transfers 1991 Special Revenue Funds Budgeted funds $ 283,207 $ 337,650 $ 234,378 $ (161,223) $ $ 225,256 Unbudgeted funds D.A.R.E. Program - 2,552 2,329 1,500 1,723 Recreation Contributed Projects 23,984 60,605 39,985 - (2,513) 42,091 Contributed Projects - 1,400 - - 2,513 3,913 Total Special Revenue Funds $ 307,191 $ 402,207 $ 276,692 $ (159,723) $ $ 272,983 Debt Service Funds Budgeted funds Unbudgeted fund Tax Increment Refunding Bonds of 1991 Total Debt Service Funds $ 5,175,702 $ 1,759,103 $ 3,874,379 $ - $ 21,587 148,319 6,670,000 - $ 3,060,426 6,543,268 $ 5,175,702 $ 1,780,690 $ 4,022,698 $ 6,670,000 $ - $ 9,603,694 -29- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Assets, Liabilities, and Fund Equity Accounts 1) Assets a) Cash and Investments - Cash balances from all funds are combined and invested to the extent available in allowable investments. Investments are stated at cost which approximates market value. Earnings on investments are 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. Assets of the deferred compensation plans are held by trustees and are reported at market value in an Agency Fund. b) Special Assessments Receivable - Special assessments represent the financing for public improvements paid for by benefitting property owners. These assessments are recorded as receivables upon certification of each project. The corresponding revenue from the delinquent (unremitted) and deferred (certified but not yet levied) special assessments receivable is deferred until the year it becomes available (collected within 60 days of year- end). c) Inventories - Inventories are valued at cost, which approximates market, using the first -in, first -out basis. d) Fixed Assets 1) General Fixed Assets Account Group - All purchased fixed assets are valued at historical cost or estimated historical cost. The costs of property, plant, and equipment are accounted for as current expenditures of the Governmental Fund Types in the year purchased. The City has elected not to record infrastructure fixed assets in its accounting records. No depreciation has been provided on general fixed assets. 2) Proprietary Fund Types - Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets as follows: Buildings 40 -50 years Machinery and equipment 3 -20 years Improvements 5 -20 years Distribution system 50 -100 years Depreciation on contributed assets charged to operations is closed to the contributed equity account. -30- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2) Liabilities Long -term liabilities expected to be financed from Governmental Funds are accounted for in the General Long -Term Debt Account Group, not in the Governmental Funds. The liability for the vested portion of accumulated vacation and sick leave is recorded in the General Long -Term Debt Account Group. No expenditure is reported for these amounts. Amounts taken as terminal leave each year are not material and therefore the total is carried as long -term debt. Vested or accumulated vacation leave of Proprietary Funds is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that it is estimated will be taken as "terminal leave" prior to retirement. 3) Fund Equity Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers, or other funds. Fund balance accounts are subdivided: Reserved fund balance accounts indicate that portion of fund equity which has been legally segregated for specific purposes or is not appropriable for expenditures. Unreserved designated fund balance accounts indicate that portion of fund equity that the City has set aside for planned future projects. Unreserved undesignated fund balance accounts indicate that portion of fund equity which is available for budgeting and expending in future periods. F. Revenues and Expenditures 1) Revenues a) Property Taxes - Property tax levies are set by the City Council and certified to Anoka County for collection the following year. In Minnesota, counties act as collection agents for all property taxes. The County spreads the levies over all taxable property in the City. Such taxes become receivables of the City and attach an enforceable lien on taxable property within the City as of January 1. -31- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property taxes are payable in equal installments by property owners to the County as follows: Personal Property - February 28 and June 30 Real Property - May 15 and October 15 The County remits the collections to the City and other taxing districts four times a year, on or before January 25, April 19, July 5, and December 4. Unpaid taxes at December 31 become delinquent and are classified in the financial statements as delinquent taxes receivable. Property taxes are recognized as revenue to the extent collected in the current period. Portions paid by the State in the form of State paid tax credits are included in intergovern- mental revenues. That portion of property taxes receivable but not available (not collected within 60 days of year -end) is recorded as deferred revenue and will be recognized as revenue in the fiscal year that it becomes available. The City's property tax levies are subject to certain maximum levels set by the State of Minnesota under statutory formulas. The City has not exceeded such levy limits. b) Intergovernmental Revenues -Intergovernmental revenues are reported using the guidelines of legal and contractual requirements of the individual programs. c) Other Revenues - Other revenues, such as licenses and permits, fees for services, fines and forfeits, and miscellaneous revenue, are recognized when received in cash because they generally are not measurable until received. Investment income is recognized as earned since it is measurable and available. 2) Expenditures Expenditure recognition for Governmental Fund Types includes only amounts represented by current liabilities. G. Total Columns on Combined Statements Total columns on the combined statements are captioned "Totals (Memorandum Only)" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles nor is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. -32- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ' H. Comparative Data Comparative total data for the prior year has been presented in the accompanying financial statements to provide an understanding of changes in the City's financial position and operations. Comparative data for each fund type has not been presented in the combined statements since their inclusion could make the statements unduly complex and difficult to read. I. Statement of Cash Flows For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. A portion of the Proprietary Funds' equity in the City -wide cash and investment management pool is considered to be cash equivalents. J. Presentation of Component Unit In June 1991, the Governmental Accounting Standards Board (GASB) adopted a new pronouncement (GASB Statement No. 14) establishing new standards for defining and reporting on the financial reporting entity. The statement is effective for financial statements for periods beginning after December 15, 1992. ' However, the City has elected earlier application of the pronouncement, as encouraged by GASB. As a result of this new pronouncement, the 1991 financial data of the City's Housing and Redevelopment Authority (HRA) has been included in the combined financial statements as a separate column, rather than being "blended" in with the financial data of the City as in previous years. This change necessitated the restatement of some prior year comparative information to make it conform to the new presentation ' format. ' NOTE 2 - CASH AND INVESTMENTS The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the combined balance sheet as "Total Cash and Investments." An indication of the level of risk assumed by the City at year -end is categorized as follows for the City's cash and investments. ' A. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all 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 (140% in the case of mortgage- backed collateral). -33- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) Authorized collateral includes the legal investments described below as well as certain first mortgage notes and certain other State or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Deposits at December 31, 1991, including checking accounts, savings accounts, and certificates of deposit, are as follows: City HRA Total Bank balance $ 536,137 $ 735,076 $ 1,271,213 Carrying amount $ 364,795 $ 727,602 $ 1,092,397 At December 31, 1991, all City deposits were insured or collateralized by securities held by the City's agent in the City's name, and all HRA deposits were insured or collateralized by securities held by the HRA's agent in the HRA's name. B. Investments The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described above; general obligations of the State of Minnesota or any of its municipalities; bankers' acceptances of United States' banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States' corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less; repurchase or reverse purchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers; and futures contracts sold under authority of Minnesota Statutes Section 471.56, Subdivision 5. The City's investments are categorized on the following page to give an indication of the level of risk assumed at year -end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. -34- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 2 - CASH AND INVESTMENTS (CONTINUED) Investment balances at December 31, 1991 are as follows: Credit Risk Category Carrying Market 1 2 3 Value Value U.S. Government Securities (including securities insured by the U.S. Government) $ 8,004,621 $ 6,543,200 $ 2,066,025 $ 16,613,846 $ 13,295,578 Government money market mutual funds 3,380,297 3,380,297 Total investments $ 19,994,143 $ 16,675,875 C. Summary of Cash and Investments Cash and temporary investments at December 31, 1991 are summarized as follows: Citv HRA Total Deposits $ 364,795 $ 727,602 $ 1,092,397 Cash on hand 5,800 50 5,850 Investments 19,994,143 - 19,994,143 Total cash and temp- orary investments $ 20,364,738 $ 727,652 $ 21,092,390 Assets held by deferred compensation trustees (recognized at market value) $ 940,934 $ 154,615 $ 1,095,549 NOTE 3 - LEGAL COMPLIANCE /BUDGETS Total actual expenditures exceeded budgeted expenditures (appropriations) in the following funds: Special Revenue Funds Paratransit $ 2,815 Debt Service Funds Tax Increment Bonds $ 12,015 -35- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 4 - INTERGOVERNMENTAL RECEIVABLES Intergovernmental receivables at December 31, 1991 presented as due from other governmental units are composed of the following: City General Fund FEMA $ 333 City of St. Anthony 46 Anoka County 26,526 City of Hilltop 57,059 Total General Fund 83,964 Special Revenue Funds D.A.R.E. Program - State of Minnesota 263 Municipal State Aid - State of Minnesota 55,142 Cable Television - City of Hilltop 1,758 Paratransit - City of Fridley 595 Total Special Revenue Funds 57,758 Capital Project Funds Independent School District No. 13 147,438 Enterprise Funds Sewer - M.W.C.C. 172,082 Refuse - Anoka County 49,457 Liquor - State of Minnesota 773 Total Enterprise Funds 222,312 Total City 511,472 I:i HUD - CIAP 159,107 Metropolitan Council 10,455 Anoka County CDBG 31,389 Total HRA 200,951 Total Intergovernmental Receivables $ 712,423 -36- CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Notes to Financial Statements (continued) December 31, 1991 NOTE 4 - INTERGOVERNMENTAL RECEIVABLES (CONTINUED) ' A. Proprietary Funds Contract Receivable and Deferred Receivable 1) Interceptor Acquisition Contract Receivable As of January 1, 1971, the Metropolitan Waste Control Commission (M.W.C.C.) assumed ownership of all existing interceptors and treatment works. Under the terms of the agreement with M.W.C.C., the City is to be reimbursed for the value at the time of transfer, of such facilities. The contract represents the value of the facilities acquired by the M.W.C.C. and was determined to be $400,533 at the date of takeover by the M.W.C.C. This amount is being amortized through credits received against annual sewer billings from M.W.C.C. over a 30 -year period with interest at 4 %. As of December 31, 1991, a balance of $165,598 remained to be collected over the next eleven years. This receivable is presented as Due From Other Governmental Units in the Sewer Utility Fund. 2) Deferred Receivable The City was required to advance funds to the M.W.C.C. for deferments of reserve capacity costs granted to other communities. The balance of this receivable --from- M.W.C.C. at December 31, 1991 was $6,484 and is collectible over the next six years. INOTE 5 - LOANS RECEIVABLE Loans receivable for the Housing and Redevelopment Authority consists of the following: ' HRA General ' Fund Home Improvement Loans $ 11,455 ' Mortgage Loans 205,947 Anoka County Community Action Program (ACCAP) Loans 182,002 t$ 399,404 These loans relate primarily to personal residences of lower income individuals under a Community Development Program. 1 -37- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 6 - INTERFUND RECEIVABLES AND PAYABLES Individual fund interfund receivables and payables at December 31, 1991 consist of the following: Interfund Interfund Receivables Payables Special Revenue Funds Municipal State Aid $ - $ 42,907 Cable Television 42,907 - Total Special Revenue Funds 42,907 42,907 Capital Project Funds Capital Improvement - 197,155 Capital Improvement Projects - 2,031 Capital Improvement Replacement 199,186 - Total Capital Project Funds 199,186 199,186 Total City $ 242,093 $ 242,093 -38- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 7 - INTERFUND TRANSFERS Operating Transfers From To Amount Purpose General D.A.R.E. Project $ 1,500 Fund D.A.R.E. Program General Paratransit 5,000 Fund City Portion Expense General Capital Improvement Replacement 80,000 Replacement Fixed Assets General Central Garage 37,800 Special Assessment Central Garage Central Garage Equipment Replacement Account 5,000 Garage Building Improvements Tax Increment Bonds Tax Increment Bonds of 1984 171,353 Debt Service Tax Increment Bonds Tax Increment Bonds of 1985 130,420 Debt Service Tax Increment Bonds Tax Increment Bonds 1987A 1,066,660 Debt Service Tax Increment Bonds Tax Increment Bonds of 1987 213,063 Debt Service Tax Increment Bonds Capital Appreciation Bonds of 1990 308 Debt Service Capital Improvement Capital Improvement 100,344 Close Projects Water Capital Replace- Water Utility ment Account 91,762 Close Projects Water Utility Water Capital Equipment Replacement Account 20,000 Replacement Fixed Assets Water Capital Equipment Water Utility Replacement Account 21,333 Infrastructure Replacement Sewer Capital Construc- Sewer Utility tion Account 27,849 Fund Projects Sewer Utility Sewer Capital Equipment Replacement Account 35,000 Replacement Fixed Assets Sewer Capital Equip- Sewer Utility ment Replacement 21,334 Equipment Replacement Capital Improvement General 48,568 Administrative Labor Cable Television General 44,788 Administrative Labor Paratransit General 8,060 Administrative Labor Liquor Utility General 54,432 Administrative Labor Water Utility General 43,878 Administrative Labor Refuse Utility General 67,957 Administrative Labor Liquor Utility General 160,000 Replacement Fixed Assets Sewer Utility General 43,874 Administrative Labor Tax Increment Bonds of 1987A Tax Increment Funds of 1985 1,800,000 Call Bonds State Aid Maintenance General 74,431 State Aid Street Maintenance Cable T.V. General 25,000 Fund Projects State Aid Maintenance State Aid Construction 30,125 Fund Projects State Aid Construction Capital Improvement 13,945 Fund Projects State Aid Construction State Aid Maintenance 5,355 Fund Projects Insurance Capital Replacement 6,499 Replace Damaged Vehicle Total Operating Transfers $ 4,455,638 -39- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 7 - INTERFUND TRANSFERS (CONTINUED) Residual Equity Transfer From Special Revenue Recreation Contributed Projects To Amount Purpose Special Revenue Contributed Projects $ 2,513 Residual Equity NOTE 8 - FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: -40- Balance December 31, Retirements 1991 $ 10 $ 3,132,099 - 3,013,217 - 1,364,692 117,481 3,881,445 482,818 964,114 $ 600,309 $ 12,355,567 26,346 2,381,117 $ 69,688 4,618,705 343,956 $ 2,407,463 $ 5,032,349 Balance January 1, City 1991 Additions Land $ 3,131,134 $ 975 Buildings 3,002,543 10,674 Improvements other than buildings 1,214,661 150,031 Machinery and equipment 3,735,420 263,506 Construction in process 963,939 482,993 Total City general fixed assets $ 12,047,697 $ 908,179 HRA Land $ 69,688 $ - Buildings 2,280,819 2,337,886 Furniture, fixtures, and office equipment 296,467 73,835 Construction in process 327,050 2,054,067 Total HRA general fixed assets $ 2,974,024 $ 4,465,788 -40- Balance December 31, Retirements 1991 $ 10 $ 3,132,099 - 3,013,217 - 1,364,692 117,481 3,881,445 482,818 964,114 $ 600,309 $ 12,355,567 26,346 2,381,117 $ 69,688 4,618,705 343,956 $ 2,407,463 $ 5,032,349 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 8 - FIXED ASSETS (CONTINUED) The following is a summary of Proprietary Fund Type fixed assets at December 31, 1991: Net fixed assets $ 1,693,844 $ 1,639,587 $ 2,047 $ 275,770 $ 3,611,248 $ 350,148 $$ 3_,961396 NOTE 9 - OPERATING LEASES The City has leased premises for a liquor store under a five -year lease agreement that originally expired in 1989. This lease was renewed for two years ending December 31, 1991. The City has exercised a three -year renewal option through December 31, 1994. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 1991 amounted to $70,745. NOTE 10 - LONG -TERM DEBT General Obligation Bonds - The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital facilities. In addition, General Obligation Bonds have been issued to refund General Obligation Tax Increment and General Obligation Special Assessment Bonds. -41- Water Sewer Refuse Liquor Total Internal Total Utility Utility Utility Utility Enterprise Service Proprietary Land $ 45,223 $ 36,586 $ - $ 13,051 $ 94,860 $ - $ 94,860 Buildings 233,236 45,690 - 183,522 462,448 307,888 770,336 Improvements other than buildings 2,661,821 3,007,791 2,890 100,093 5,772,595 98,629 5,871,224 Machinery and equipment 242,580 366,685 615 201,925 811,805 97,412 909,217 3,182,860 3,456,752 3,505 498,591 7,141,708 503,929 7,645,637 Less accumulated depreciation 1,489,016 1,817,165 1,458 222,821 3,530,460 153,781 3,684,241 Net fixed assets $ 1,693,844 $ 1,639,587 $ 2,047 $ 275,770 $ 3,611,248 $ 350,148 $$ 3_,961396 NOTE 9 - OPERATING LEASES The City has leased premises for a liquor store under a five -year lease agreement that originally expired in 1989. This lease was renewed for two years ending December 31, 1991. The City has exercised a three -year renewal option through December 31, 1994. This lease is considered for accounting purposes to be an operating lease. Lease expenditures for the year ended December 31, 1991 amounted to $70,745. NOTE 10 - LONG -TERM DEBT General Obligation Bonds - The City issues General Obligation Bonds to provide funds for the acquisition and construction of major capital facilities. In addition, General Obligation Bonds have been issued to refund General Obligation Tax Increment and General Obligation Special Assessment Bonds. -41- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - LONG -TERM DEBT (CONTINUED) General Obligation Bonds are direct obligations and are backed by the full faith and credit of the City General Obligation Bonds currently outstanding are as follows: Special Assessment Bonds General Government Permanent Improve- ment Refunding Bonds of 1987 Tax Increment Bonds General Government Tax Increment Bonds of 1984 General Government Tax Increment Refunding Bonds of 1987, Series A General Government Tax Increment Taxable Bonds of 1987 General Obligation Tax Increment Capital Appreciation Bonds of 1990 Principal General Obligation Tax Increment Refunding Final Original Interest Issue Maturity Balance Issue Rate Date Date End of Year $ 2,230,000 5.50-5.60% 6/01/87 3/01/95 $ 1,185,000 1,070,000 8.50 -9.40 9,090,000 5.75 -7.50 1,100,000 8.40 -9.10 2,399,721 6.90 -7.15 6/01/84 3/01/94 440,000 6/01/87 3/01/02 8,565,000 8/01/87 2/01/97 980,000 8/23/90 9/01/09 2,399,721 Bonds of 1991 6,670,000 4.75 -5.80 12/01/91 3/01/02 6,670,000 $ 20,239,721 Annual debt service requirements to maturity for general obligation bonds including interest of $8,624,856, are as follows: -42- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - LONG -TERM DEBT (CONTINUED) Fiscal Year Ending December 31 1992 1993 1994 1995 1996 Thereafter Total $ 2,197,433 2,269,072 8,564,594 1,758,141 1,466,072 12,609,265 $ 28,864,577 These figures include a refunding payment of $6,550,000 in 1994 for Tax Increment Refunding Bonds of 1987 to be paid in full from an escrow account managed by Norwest Bank Trust Services. Until the crossover refunding date, interest payments for Tax Increment Refunding Bonds of 1991 will be fully paid from interest income generated by the escrow account. At December 31, 1991, a total of $9,603,694 is available in Debt Service Funds to service the General Obligation Special Assessment and Tax Increment Bonds. There are a number of limitations and instructions contained in the various bond indentures. The City is in compliance with all significant ' limitations and restrictions. The Tax Increment Bonds are payable from the amount of increase in the property taxes on the property ' in the Tax Increment District. The Special Assessment Bonds are payable primarily from special assessments levied on the properties benefitting from the improvements. Any deficiencies in revenue from these sources will be provided by general property taxes. Liability for Compensated Absences - Upon leaving City employment in good standing, employees shall receive payment based on their most recent level for all vacation leave earned but not taken and for one -third of earned but unused sick leave. The liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. ' Long -Term Debt - Other - The City is the administering authority for the following Tax Increment Finance Districts: 1 -43- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - LONGTERM DEBT (CONTINUED) A. 1977 Downtown CBD Revitalization Plan A3 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1991) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1991 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $ 118,634 $ 1,195,404 $ 1,076,770 $ 28,434,721 $ 10,800,000 $ 17,634,721 B. 1984 Modification to the Downtown CBD Revitalization Plan C7 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1991) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1991 C. 1984 University Avenue Redevelopment C8 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1991) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1991 -44- Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $ 37,928 $ 80,549 $ 42,621 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $ 25,176 $ 114,322 $ 89,146 $ 1,070,000 $ 630,000 $ 440,000 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - LONG -TERM DEBT (CONTINUED) D. 1987 Sullivan Lake Development H2 Type of District Authorizing Law Duration of District Original Tax Capacity Current Tax Capacity (for taxes collectible in 1991) Captured Tax Capacity Retained Bonds Issued Principal Payments Bonds Outstanding at December 31, 1991 E. 1989 Multi -Use Redevelopment Plan K2 Redevelopment HRA (Minnesota Statutes Sections 462.545 and 462.585) August 1, 2009 $ 38,186 $ 93,471 $ 55,285 $ 1,100,000 $ 120,000 $ 980,000 Type of District Redevelopment Authorizing Law HRA (Minnesota Statutes Sections 469.001 to 469.047 and 469.714 to 469.178) Duration of District October 4, 2014 Original Tax Capacity $ 249,832 Current Tax Capacity (for taxes collectible in 1991) $ 210,484 Captured Tax Capacity Retained $ - Bonds Issued $ Principal Payments $ - Bonds Outstanding at December 31, 1991 $ - Changes in Long -Term Liabilities - During the year ended December 31, 1991, the following changes occurred in liabilities reported in the General Long -Term Debt Account Group: -45- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 10 - LONGTERM DEBT (CONTINUED) Balance City January 1 Note payable to HRA General Obligation Tax Increment Bonds Principal Accreted interest General Obligation Special Assessment Bonds Liability for compen- sated absences Total City HRA Note payable ( #105 -902) to U.S. Department of Housing and Urban Development; note and related interest were forgiven in 1991 Liability for compen- sated absences Balance i Additions Reductions December 31 $ 17,177 $ - $ 568 $ 16,609 15,004,721 6,670,000 2,620,000 19,054,721 - 175,444 - 175,444 1,460,000 - 275,000 1,185,000 295,051 34,193 - 329,244 $ 16,776,949 $ 6,879,637 $ 2,895,568 $ 20,761,018 $ 125,905 $ - $ 125,905 $ - 8,839 1,035 - 9,874 Total HRA $ 134,744 $ 1,035 $ 125,905 $ 9,874 ' In 1987, the City issued $9,090,000 of General Obligation Tax Increment Refunding Bonds to advance refund $6,925,000 of the City's General Obligation Tax Increment Bonds of 1980 and $1,800,000 of the City's General Obligation Tax Increment Bonds of 1985. Pending the call of bonds to be refunded, the proceeds were deposited in an escrow account. In 1990, bonds of the 1980 issue maturing on or after March 1, 1991 in the amount of $6,925,000 were redeemed with funds held in escrow. In addition, bonds of the 1985 issue maturing on or after March 1, 1992 in the amount of $1,800,000 were redeemed in 1991 with remaining funds held in escrow. In December 1991, the City issued $6,670,000 of General Obligation Tax Increment Refunding Bonds to advance refund $6,550,000 of the City's Tax Increment Refunding Bonds of 1987. Pending the call , of the bonds to be refunded in 1994, the proceeds were deposited in an escrow account. Principal and interest on the 1987 bonds will be paid by the City until the call date. Interest payments on the 1991 issue will be paid from proceeds of the escrow account until the call date, after which time interest and principal will be paid by the City. The advance refunding of the bonds resulted in a positive cash flow and net savings to the City as indicated by the table on the following page. �J ICITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 r NOTE 10 - LONGTERM DEBT (CONTINUED) ( Non - Refunded Refunding Total New Existing Savings Date Debt Service Debt Service Debt Service Debt Service or (Loss) 03/01/92 $ 934,343 $ _ $ 934,343 $ 934,343 $ 09/01/92 03/01/93 1,230,285 - 1,230,285 1,230,285 - 09/01/93 - - - 03/01/94 1,203,125 _ 1,203,125 1,203,125 09/01/94 - - - - - 03/01/95 - 1,251,385 1,251,385 1,283,645 32,260 ' 09/01/95 - - - - 03/01/96 _ 1,286,505 1,286,505 1,319,525 33,020 09/01/96 - - - - - 03/01/97 1,221,105 1,221,105 1,257,645 36,540 09/01/97 _ 03/01/98 - 1,210,075 1,210,075 1,243,945 33,870 09/01/98 03/01/99 = 1,110,407 1,110,407 1,145,785 35,378 09/01/99 03/01/2000 - 1,016,828 1,016,828 1,048,825 31,997 09/01/2000 - - - - 03/01/2001 _ 924,178 924,178 958,125 33,947 09/01/2001 - - - - - 03/01/2002 - 228.007 228.007 263.375 35.368 $ 3,367;753 $ 8,248,490 $ 11,616,243 $ 11,888,623 $ 272,380 With the exception of the 1990 Tax Increment Bonds, all General Obligation Bonds are serial bonds which require semiannual payments of principal and /or interest from the date the bonds are issued. The 1990 Tax Increment Bonds are Capital Appreciation Bonds which require no payments of principal or j interest until September 2002. During the year ended December 31, 1991, accreted interest of $175,444 was included in general long -term debt for the 1990 Tax Increment Capital Appreciation Bonds. NOTE 11 - FUND EQUITY The following funds had a fund deficit as of December 31, 1991: Special Revenue Funds Municipal State Aid Capital Project Funds Capital Improvement Fund 401 -47- Fund Deficit $ 10,834 $ 79,002 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 11 - FUND EQUITY (CONTINUED) The City will finance these deficits through external or internal sources in future years. For various reasons, certain funds have a portion of their fund equity reserved or designated for specific purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows: A. Reservation of Retained Earnings Reserve for Insurance - This reserve in the Insurance Internal Service Fund represents funds set aside to pay any claims from the period during which the City had no commercial insurance, and funds set aside to pay any amounts that may arise from a claim that exceeded the limits of current commercial policies. Reserve for Capital Replacement /Construction - This reserve in the Water and Sewer Enterprise Funds and the Central Garage Internal Service Fund represents funds set aside to pay for appropriate future capital replacement /construction projects. Reservations of retained earnings are summarized as follows at December 31, 1991: Reserve for capital replacement /construction Water Utility Fund Sewer Utility Fund Central Garage Fund Reserve for insurance B. Reservation of Fund Balances Internal Enterprise Service Total $ 679,674 $ - 2,370,028 - - 26,521 - 453,191 $ 679,674 2,370,028 26,521 453,191 $ 3,049,702 $ 479,712 $ 3,529,414 Reserve for Community Development - This reserve in the Housing and Redevelopment Authority's General Fund represents available resources dedicated to community development activities by prior community development grants. Reserve for Apartment Project Maintenance - This reserve represents financial resources committed to fund future maintenance activity in an apartment building owned and operated by the Housing and Redevelopment Authority. Reserved for Redevelopment - This reserve represents financial resources committed to fund future redevelopment or associated debt service. -48- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 11 - FUND EQUITY (CONTINUED) Reservations of fund balances at December 31, 1991 are summarized as follows: Reserve for redevelopment $ 95,366 Reserve for community development 160,187 Reserve for apartment project maintenance 118,770 G` '1'7 A 717 C. Designated Unreserved Fund Balances Designated for Debt Service - These amounts represent fund balances which are presently committed to provide financial resources to pay principal and interest on the City's General Obligation Bonds. Designated for Subsequent Years' Expenditures - Unspent appropriations lapse at year -end. Amounts which are reappropriated in the next year's budget are reported as fund equity designations. Designated for Working Capital - This amount represents funds set aside by the City to provide positive cash flow for the next fiscal year. Designated unreserved fund balances at December 31, 1991 are summarized as follows: Special Debt Capital General Revenue Service Proiect Total Designated for debt service $ - $ - $ 9,603,694 $ - $ 9,603,694 Designated for subsequent years' expenditures 101,528 3,342 - 528,739 633,609 Designated for working capital 2,931,567 - - - 2,931,567 Total designated unreserved fund balance $ 3,033,095 $ 3,342 $ 9,603,694 $ 528,739 $ 13,168,870 NOTE 12 - SEGMENT INFORMATION - ENTERPRISE FUNDS The City maintains four Enterprise Funds which are intended to be self - supporting. Financial segment information as of and for the year ended December 31, 1991 is presented on the following page: -49- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 12 - SEGMENT INFORMATION - ENTERPRISE FUNDS (CONTINUED) Operating revenues $ Depreciation expense $ Operating income (loss) $ Net income (loss) $ Total operating transfers $ Property, plant, and equipment Additions $ Net working capital $ Net cash provided (used) by operating Water $ Sewer $ Refuse Liquor Total 2,587,082 $ 808,227 $ 774,047 $ 1,573,612 $ 4,789,343 $ 7,945,229 76,933 $ 132,472 $ 351 $ 33,025 $ 242,781 49,790 $ (224,007) $ 131,441 $ 394,719 $ 351,943 59,847 $ (111,570) $ 71,682 $ 222,923 $ 242,882 (43,879) $ (43,874) $ (67,957) $ (214,432) $ (370,142) 124,393 $ 57,310 $ 817,548 $ 2,223,338 $ activities $ 111,361 $ (85,065) $ Total assets $ 2,587,082 $ 4,062,647 $ Total equity - contributed $ 883,102 $ 746,007 $ Total equity - retained earnings $ 1,628,290 $ 3,289,000 $ - $ 34,143 $ 215,846 468,181 $ 824,703 $ 4,333,770 160,574 $ 439,208 $ 626,078 498,899 $ 1,347,177 $ 8,495,805 - $ - $ 1,629,109 470,228 $ 1,100,473 $ 6,487,991 NOTE 13 - PROPRIETARY FUNDS' CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds and Internal Service Funds by the City, less depreciation thereon charged to operations. Changes occurring in the account during the year were as follows: Water Sewer Central Utility Utility Garage Total Balance - beginning of year $ 909,396 $ 784,942 $ 188,849 $ 1,883,187 Less depreciation on contributed assets 26,294 38,935 - 65,229 Balance - end of year $ 883,102 $ 746,007 $ 188,849 $ 1,817,958 -50- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 14 - DEFINED BENEFIT PENSION PLANS - STATEWIDE A. Plan Description All full -time and certain part-time employees of the City of Columbia Heights are covered by defined benefit pension plans administered by the Public Employees' Retirement Association of Minnesota (PERA). PERA administers the Public Employees' Retirement Fund (PERF) and the Public Employees' Police and Fire Fund ( PEPFF) which are cost - sharing, multiple - employer retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters, and peace officers who qualify for membership by Statute are covered by the PEPFF. The payroll for employees covered by PERF and PEPFF for the year ended December 31, 1991 was $2,337,581 and $1,022,008, respectively; the City's total payroll was $3,938,657. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon the death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's 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 Coordinated and Basic members. The retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic member is 2.0% of the average salary for each of the first ten years of service and 2.5% for each remaining year. For a Coordinated member, the annuity accrual rate is 1.0% of the average salary for each of the first ten years and 1.5% for each remaining year. Using Method 2, the annuity accrual rate is 2.5% of the average salary for Basic members and 1.5% for Coordinated members. For PEPFF members, the annuity accrual rate is 2.5% for each year of service. For PERF members whose annuity is calculated using Method 1, and for all PEPFF members, a full annuity is available when age plus years of service equal 90. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree. No survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service, in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. B. Contributions Required and Contributions Made Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. The City makes annual contributions to the pension plans equal to the amount required by State Statutes. According to Minnesota Statutes Chapter 356.215, Subdivision 4(g), the date of full funding required for the PERF and the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's actuary determines the sufficiency of the statutory contribution rates towards meeting the required full funding deadline. The actuary compares the actual contribution rate to a "required" contribution rate. Current combined statutory contribution rates and actuarially required contribution rates for the plans are as follows: -51- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 14 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) Statutory Rates Required Employees Employer Rates PERF (Basic and Coordinated Plans) 4.44% 4.81% 10.04% PEPFF 8.00% 12.00% 17.56% Total contributions made by the City during fiscal year 1991 were: Amounts Employees Employer PERF $ 111,692 $ 124,743 PEPFF 81,760 122,641 $ 193,452 $ 247,384 Percentage of Covered Payroll Employees Employer 4.78% 5.34% 8.00% 12.00% The City's contribution for the year ended December 31, 1991 to the PERF represented 0.12% of total contributions required of all participating entities. For the PEPFF, contributions for the year ended December 31, 1991 represented 0.46% of total contributions required of all participating entities. C. Funding Status and Progress 1. Pension Benefit Obligation The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERA's funding status on a going- concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees' Retirement Systems and among employers. PERA does not make separate measurements of assets and pension benefit obligation for individual employers. -52- CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Notes to Financial Statements (continued) December 31, 1991 NOTE 14 - DEFINED BENEFIT PENSION PLANS - STATEWIDE (CONTINUED) The pension benefit obligations as of June 30, 1991 are shown below: PERF PEPFF (In Thousands) Total pension benefit obligation $ 4,458,010 $ 732,911 Net assets available for benefits, at cost (market values for PERF = $3,662,769; PEPFF = $872,430) 3,524,071 823,125 Unfunded (assets in excess of) pension benefit obligation $ 933,939 $ (90,214) The measurement of the pension benefit obligation is based on an actuarial valuation as of June 30, 1991. Net assets available to pay pension benefits were valued as of June 30, 1991. 2. Changes in Benefit Provisions During the 1991 legislative session, benefit improvements were obtained for survivors of members in the Basic Plan and the Police and Fire Fund. In the Basic Plan, the maximum family death benefit was increased from $1,000 per month to 70% of the member's average salary. In the Police and Fire Fund, children's benefits were restored for families of disabled members who had chosen the joint and survivor annuity option before death. The effect of these changes increased the pension benefit obligation in the PERF by $4,016,869 and had essentially no effect on the pension benefit obligation in the PEPFF. D. Ten -Year Historical Trend Information Ten -year historical trend information is presented in PERA's Comprehensive Annual Financial Report for the year ended June 30, 1991. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. E. Related Party Investments As of June 30, 1991, and for the fiscal year then ended, PERA held no securities issued by the City or other related parties. 1 -53- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 15 - SUMMARY OF SINGLE EMPLOYER DEFINED BENEFIT PENSION PLANS Certain full -time and volunteer fire fighters and policemen of the City participate in one of three single employer defined benefit pension plans. A detailed presentation of pension benefits, contributions, and funding status for each of the three plans is included in the notes that immediately follow this note to the financial statements. A summary of the pension benefit obligation and net assets available for benefits at December 31, 1991 is summarized as follows: NOTE 16 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION A. Plan Description Volunteer fire fighters of the City of Columbia Heights are members of the Columbia Heights Fire Department Relief Association, Volunteer Division. The Division maintains a single - employer defined benefit pension plan. It is governed by a Board of Trustees composed of the members of the Columbia Heights City Council. The City Manager, Clerk- Treasurer, Chief of the Fire Department, and the Public Safety Director of the City are ex- officio members of the Board of Trustees. The City's payroll for members of the Volunteer Relief Association for the year ended December 31, 1991 was $64,413, compared to a total City payroll of $3,938,657. B. Pension Benefits The bylaws, as amended in August 1989, provide for monthly pensions of $16 per year of service, for up to 30 years of service, for all Division members. Alternatively, members may elect a lump sum payment of $2,300 per year of service. Both monthly and lump sum pensions begin vesting after 10 years of service and are fully vested after 20 years. Benefits are payable after retiree is at least 50 years old. The Plan also provides for disability and survivor benefits. The City of Columbia Heights levies property taxes at the direction of and for the benefits of the Fire Relief Association, Volunteer Division and passes through State aids allocated to the Plan, all in accordance with enabling State Statutes. -54- Fire Relief Fire Relief Total Association - Association - Police Single Volunteer Paid Relief Employer Division Division Association Plans Pension benefit obligation $ 528,085 $ 2,359,384 $ 4,634,966 $ 7,522,435 Net assets available for pension benefits, at cost 793,557 1,545,236 2,972,595 5,311,388 Unfunded (assets in excess of) pension benefit obligation $ (265,472) $ 814,148 $ 1,662,371 $ 2,211,047 NOTE 16 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION A. Plan Description Volunteer fire fighters of the City of Columbia Heights are members of the Columbia Heights Fire Department Relief Association, Volunteer Division. The Division maintains a single - employer defined benefit pension plan. It is governed by a Board of Trustees composed of the members of the Columbia Heights City Council. The City Manager, Clerk- Treasurer, Chief of the Fire Department, and the Public Safety Director of the City are ex- officio members of the Board of Trustees. The City's payroll for members of the Volunteer Relief Association for the year ended December 31, 1991 was $64,413, compared to a total City payroll of $3,938,657. B. Pension Benefits The bylaws, as amended in August 1989, provide for monthly pensions of $16 per year of service, for up to 30 years of service, for all Division members. Alternatively, members may elect a lump sum payment of $2,300 per year of service. Both monthly and lump sum pensions begin vesting after 10 years of service and are fully vested after 20 years. Benefits are payable after retiree is at least 50 years old. The Plan also provides for disability and survivor benefits. The City of Columbia Heights levies property taxes at the direction of and for the benefits of the Fire Relief Association, Volunteer Division and passes through State aids allocated to the Plan, all in accordance with enabling State Statutes. -54- ICITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 16 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION (CONTINUED) C. Contributions Required and Contributions Made ' The Association's funding policy provides for periodic City contributions in accordance with State Statutes. The minimum actuarially determined contribution required by Statutes is the annual normal cost ' plus amortization of any unfunded actuarial liability. During the year ended December 31, 1991, contributions totaling $24,749 (all employer) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of ' December 31, 1990. The contributions represent normal cost only since there was no unfunded actuarial liability. Benefits and contributions are not based on payroll; accordingly, there is no covered payroll. ' D. Funding Status The amount shown on the followig page as the "pension benefit obligation" is a standardized disclosure ' measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to (1) help users assess the Plan's funding status on a going- concern basis, (2) assess progress being made in accumulating sufficient assets to pay benefits when due, and (3) allow for comparisons among public employee retirement plans. The measure is independent of the actuarial funding method used to determine contributions to the Plan. The pension benefit obligation was determined using estimates provided by the actuaries of the Plan as of December 31, 1991. The most recent actuarial valuation was completed for the year ended December 31, 1990. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 5.0% per year compounded annually and (b) the assumption that benefits will not increase after retirement. ' At December 31, 1991, the assets in excess of the pension benefit obligation were $265,472, determined as follows: 1 -55- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 16 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION (CONTINUED) Pension benefit obligation Retirants and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 292,016 Current employees Accumulated employee contributions including allocated investment income - Employer financed 236,069 Total pension benefit obligation 528,085 Net assets available for benefits, at cost (market value was $841,473) 793,557 Assets in excess of pension benefit obligation $ 265,472 The total pension benefit obligation as of January 1, 1991 was $583,497. During the year, the Plan experienced a net decrease of $55,412 in the pension benefit obligation primarily due to the payment of a large amount of benefits to retirants in 1991. E. Historical Trend Information 1. Three -Year Historical Trend Information December 31 1989 1990 1991 Net assets available for benefits, as a percentage of pension benefit obligation 116 % 145 % 150 % Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll (186) % (401) % (412) % Employer contributions, as a percentage of annual covered payroll 24 % 41 % 38 % Financial requirements of the Relief Association are determined in accordance with State Statutes rather than actuarially. -56- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 16 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, VOLUNTEER DIVISION (CONTINUED) 2. Ten -Year Historical Trend Information Ten -year historical trend information is presented in the Relief Association's Annual Financial Report. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. F. Related Party Investments During 1991, the Association held no securities issued by the City or other related parties. NOTE 17 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, PAID DIVISION A. Plan Description Paid full -time regular fire fighters of the City of Columbia Heights first employed by the City on or prior to December 31, 1974 are members of the Columbia Heights Fire Relief Association, Paid Division. The Division maintains a single - employer defined benefit pension plan. Marquette Bank acts as trustee for the beneficiaries. The City's payroll for members of the Paid Relief Association for the year ended December 31, 1991 was $47,892 compared to a total City payroll of $3,938,657. B. Pension Benefits A fire fighter who completes at least 20 years of service as an active member of the Columbia Heights Fire Department and has been a member of the Relief Association for at least 20 years, after age 50, is entitled to a full service pension upon retirement. For the first 20 years of service, the individual is entitled to 35/80 of base pay (base pay is defined as the salary of a first grade fireman). For each year in excess of 20, an additional 1/80 is added up to a maximum of 45/80 of base pay for 30 or more years of service. In addition and not subject to the above maximum, for each year over 25, a benefit of 1/2% of base pay is added to the benefit. (The additional benefit is not subject to the post- retirement adjustment provisions.) A member is entitled to disability benefits as follows: a. Less than 10 years service - 30/80 of base pay b. 10 to 15 years service - 35/80 of base pay c. 15 or more years service - 40/80 of base pay to age 50 at which time the benefit is recomputed based on service assuming a minimum of 20 years of service. -57- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 17 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, PAID DIVISION (CONTINUED) Post - retirement adjustments ( "Escalator "): Each time base pay is changed, payments to all benefit recipients are simultaneously changed by the same percent that base pay is changed. C. Contributions Required and Contributions Made The Association's funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level dollar amount over a period of 19 years. During the year ended December 31, 1991, contributions totaling $116,500 (all employer) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1989. Employer contributions represented 243% of current covered payroll. The employer contributions consisted of $9,142 for normal cost (19% of current covered payroll) and $107,358 for amortization of unfunded actuarial accrued liability (224% of current covered payroll). Significant actuarial assumptions used to compute contribution requirements were the same as those used to compute the standardized measure of the pension benefit obligation. D. Funding Status The amount shown on the following page as the "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is the actuarial present value of credited projected benefits and is intended to (1) help users assess the Plan's funding status on a going- concern basis, (2) assess progress being made in accumulating sufficient assets to pay benefits when due, and (3) allow for comparisons among Public Employee Retirement Plans. The measure is independent of the actuarial funding method used to determine contributions to the Plan. The pension benefit obligation was determined as part of an actuarial valuation of the Plan as of December 31, 1991. Significant actuarial assumptions used in determining the pension benefit obligation include (a) a rate of return on the investment of present and future assets of 5.0% per year compounded annually, (b) projected salary increases of 3.5% per year compounded annually, attributable to inflation, and (c) the assumption that benefits will increase 3.5% per year after retirement. At December 31, 1991, the unfunded pension benefit obligation was $814,148, determined as follows: -58- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 17 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, PAID ' DIVISION (CONTINUED) Pension benefit obligation ' Retirants and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 2,038,044 ' Current employees Accumulated employee contributions including allocated investment income 33,182 1 Employer financed 288,158 Total pension benefit obligation 2,359,384 Net assets available for benefits, at cost (market value was $1,623,623) 1,545,236 ' Unfunded pension benefit obligation $ 814,148 The total pension benefit obligation as of January 1, 1991 was $2,346,293. During the year, the Plan experienced a net increase of $13,091 in the pension benefit obligation. E. Historical Trend Information ' 1. Three -Year Historical Trend Information December 31 1989 1990 1991 ' Net assets available for benefits, as a percentage of pension benefit obligation 59% 62% 65% Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll 2,276% 2,003% 1,700% ' Employer contributions, as a percentage of annual covered payroll 276% 264% 243% Contributions made were in accordance with actuarially determined requirements. ' 2. Ten -Year Historical Trend Information Ten -year historical trend information related to the pension plan is presented in the Relief Association's annual financial report. This information is useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. 1 -59- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 17 - DEFINED BENEFIT PENSION PLANS - FIRE RELIEF ASSOCIATION, PAID DIVISION (CONTINUED) F. Related Party Investments During 1991, the Association held no securities issued by the City or other related parties. NOTE 18 - DEFINED BENEFIT PENSION PLANS - POLICE RELIEF ASSOCIATION A. Plan Description All policemen first employed by the City of Columbia Heights on or before June 15, 1972 are members of the Columbia Heights Police Relief Association. The Association is a single employer pension plan. It is governed by a Board of Directors consisting of members of the Association regardless of whether such members are active or retired members of the Columbia Heights Police Department. The City's payroll for members of the Relief Association for the year ended December 31, 1991 was $149,694 compared to a total City payroll of $3,938,657. B. Pension Benefits A policeman who completes at least 20 years as an active member of the Columbia Heights Police Department and has been a member of the Relief Association for at least 20 years, after age 50, is entitled to a full service pension upon retirement. The service pension prescribed by the Relief Association's by -laws is 35/80 of base pay (base pay is defined as the salary of a top patrolman). For each year in excess of 20, an additional 1/80 is added up to a maximum of 40/80 of base pay for 25 or more years of service. In addition, and not subject to the above maximum for each year over 25, a benefit of 1/2% of base pay is added to the benefit. (The additional benefit is not subject to the post- retirement adjustment provisions.) A member is entitled to disability benefits of 35/80 of salary at the time of the disability. C. Contributions Required and Contributions Made The Association's funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level dollar amount over a period of 18 years. During the year ended December 31, 1991, contributions totaling $213,387 ($203,764 employer and $9,623 employees) were made in accordance with contribution requirements determined by an actuarial valuation of the Plan as of December 31, 1989. The employer contribution consisted of $53,748 for normal cost and $150,016 for amortization of the unfunded actuarial accrued liability. Employer contributions represented 136% of covered payroll. •1 CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 18 - DEFINED BENEFIT PENSION PLANS - POLICE RELIEF ASSOCIATION (CONTINUED) D. Funding Status The Governmental Accounting Standards Board (GASB) requires disclosure of the total pension benefit obligation as determined by a standardized measurement of the actuarial present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date. A standardized measure of the pension benefit obligation was adopted by GASB to enable readers of the financial statements to (1) assess the Association's funding status on a going- concern basis, (2) assess progress made in accumulating sufficient assets to pay benefits when due, and (3) make comparisons among relief associations. This measurement is independent of the funding method used to determine required contributions. A variety of significant actuarial assumptions are used to determine the standardized measure of the pension benefit obligation and these assumptions are as follows: 1. A rate of return on the investment of present and future assets of 5.0% per year compounded annually. 2. Projected salary increases of 3.5% per year compounded annually, attributable to inflation. 3. The assumption that benefits will increase 3.5% per year after retirement. At December 31, 1991, the unfunded pension benefit obligation was as follows: Retirees and beneficiaries currently receiving benefits and retired policemen entitled to benefits, but not yet receiving them Current employees Accumulated employee contributions including allocated investment income Employer financed Total pension benefit obligation Net assets available for benefits, at cost (market value was $3,133,106) Unfunded pension benefit obligation $ 3,168,084 144,269 1,322,613 4,634,966 2,972,595 $ 1,662,371 The total pension benefit obligation as of January 1, 1991 was $4,526,321. During the year, the Plan experienced a net change of $108,645 in the pension benefit obligation. -61- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 18 - DEFINED BENEFIT PENSION PLANS - POLICE RELIEF ASSOCIATION (CONTINUED) E. Historical Trend Information 1. Three -Year Historical Trend Information December 31 1989 1990 1991 Net assets available for benefits, as a percentage of pension benefit obligation 60% 61% 64% Unfunded (assets in excess of) pension benefit obligation, as a percentage of annual covered payroll 808% 1,238% 1,110% Employer contributions, as a percentage of annual covered payroll 96% 131% 136% Financial requirements of the Relief Association are determined in accordance with State Statutes rather than actuarially. 2. Ten -Year Historical Trend Information Ten -year historical trend information related to the pension plan is presented in the Relief Association's annual financial report. The information is presented to enable the reader to assess the progress made by the Plan in accumulating sufficient assets to pay pension benefits as they become due. F. Related Party Investments During 1991, the Association held no securities issued by the City or other related parties. NOTE 19 - DEFERRED COMPENSATION PLAN The government offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The Plan, available to all government employees, permits them to defer a portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. -62- ' CITY OF COLUMBIA HEIGHTS, MINNESOTA ' Notes to Financial Statements (continued) December 31, 1991 NOTE 19 - DEFERRED COMPENSATION PLAN (CONTINUED) All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the government subject only to the claims of the government's general creditors. Participants' rights under the Plan are equal to those of general creditors of the government in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of management that the government has no liability for losses under the Plan but does have the duty of due care that would be required of an ordinary prudent investor. The government believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. Investments are managed by the Plan's trustee under one of four investment options, or a combination thereof. The choice of the investment option(s) is made by the participants. Assets of the Plan are reflected in these statements in an Agency Fund at market value. NOTE 20 - COMMITMENTS AND CONTINGENCIES ' A. Risk Management Although the City carries insurance for current risks, there is no coverage maintained for possible losses arising from occurrences in certain previous years. The City is not aware of any unreported or pending claims which could have a material effect on the City. Existing litigation is discussed below. During 1989, the HRA was added to the City of Columbia Heights Workers' Compensation Policy. The policy is a premium refund option plan which has an established minimum premium that both the City and the HRA pay. The policy also has a maximum premium based on the number of claims and the cost of the claims during the year. Under the terms of this policy, the potential cost to the HRA could be significantly higher than the minimum premiums paid. The HRA is aware of no claims that would result in additional premium payments at this time. In February 1991, the HRA purchased its own workers' compensation policy which is not subject to the minimum /maximum premium provisions. B. Litigation The City had the usual and customary type of miscellaneous claims pending at year -end, mostly of a minor nature. The City has been named a defendant in litigation alleging excessive use of force during an arrest by the City's police officers. The plaintiff has not specified monetary damages at the current time. A trial date is expected some time in 1992. There is no insurance coverage available relating to this action because the City was self - insured at the time of the arrest. The outcome of this case and the other miscellaneous claims is unknown. It is not determinable at this time whether unfavorable settlements of the claims will exceed insurance coverage. City management believes that the City will not incur any material monetary loss relating to the cases. No loss has been recorded on the City's financial statements relating to the claims. -63- CITY OF COLUMBIA HEIGHTS, MINNESOTA Notes to Financial Statements (continued) December 31, 1991 NOTE 20 - COMMITMENTS AND CONTINGENCIES 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 HRA expects such amounts, if any, to be immaterial. D. HRA Redevelopment Agreements The HRA is asserting claims to 1990 tax increment deficiencies totaling approximately $91,500 from a redeveloper pursuant to the terms of a 1987 private redevelopment agreement between the HRA and such redeveloper. The HRA is currently pursuing litigation to collect such deficiencies. Under the terms of an amended 1988 private redevelopment agreement between the HRA and a redeveloper, such redeveloper was entitled to and was paid a payment of $60,000 of tax increment funds collected in connection with a related Tax Increment District by December 1, 1990 and another $60,000 by December 1, 1991. In addition, the agreement calls for additional payments of tax increment funds as follows: On or before December 1, 1992 $10,000 plus $50,000 times the appli- cable percentage as of January 2, 1992 The applicable percentage is defined as a percentage equal to a fraction, the numerator of which is the gross leasable area stated in square footage of that part of the office /retailing portion which is leased as of the dated referenced, and the denominator of which is 90% of the gross leasable area stated in square footage. Such tax increment funds have been and will be remitted to the HRA from the City of Columbia Heights for payment to the redeveloper. -64- GENERAL FUND ' The Home Rule Charter of the City of Columbia Heights provides in Section 69, Subdivision (c): "A General Fund for the support of such other funds and for the payment of such expenses of the City as the Council may deem proper. Into this fund shall be paid all monies not herein provided to paid (sic) into any other fund." -65- CITY OF COLUMBIA IEIGIM, MINNESOTA A General Fund Comparative Balance Sheet As of December 31, 1991 and 1990 Assets Cash and investments Exhibit F -1 1991 1990 Cash and cash equivalents $ 2,941,048 $ 2,265,657 Temporary investments 95,514 351,799 Total cash and investments 3,036,562 2,617,456 Receivables 2,259 115,943 Accounts 9,177 12,844 Deferred special assessments 591,889 619,148 Taxes 854,508 954,248 Unremitted 52,454 16,609 Delinquent 88,809 81,891 Interest 13,024 96,532 Due from other governmental units 83,964 97,831 Due from component units 11,665 9,406 Prepaid expense 59 1,162 Total assets $ 3,887,603 $ 3,552,879 Liabilities and Fund Equity Liabilities Accounts payable $ 77,596 $ 58,289 Contracts payable- retained percentage 168 3,200 Accrued salaries and withholdings payable 70,240 53,490 Due to other governmental units 2,259 115,943 Due to component units 3,885 3,911 Deferred revenue 700,360 719,415 Total liabilities 854,508 954,248 Fund equity Fund balance Reserved for redevelopment 95,366 - Unreserved Designated for subsequent years' expenditures 101,528 63,455 Designated for working capital 2,836,201 2,535,176 Total fund equity 3,033,095 2,598,631 Total liabilities and fund equity $ 3,887,603 $ 3,5522879 o$ Exhibit F-2 CUY OF COLUMBIA HEIGHTS, MINNESOTA General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance ' Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Faded December 31, 1990) 1991 1990 ' Variance Favorable ' Budget Actual (Unfavorable) Actual Revenues Taxes $ 2,233,207 $ 2,225,803 $ (7,404) $ 2,067,469 ' Licenses and permits 144,110 164,945 20,835 147,587 Intergovernmental 3,017,328 3,040,675 23,347 3,085,929 Charges for services 399,120 340,184 (58,936) 231,463 Fines and forfeitures 129,200 116,386 (12,814) 123,505 Interest 158,000 127,887 (30,113) 286,085 Other revenues Miscellaneous 24,300 141,831 117,531 39,609 Proceeds from sale of land - 1,193 1,193 - Total revenues 6,105,265 6,158,904 53,639 5,981,647 Expenditures Current General government Council 194,617 196,352 (1,735) 157,966 Manager 231,432 210,599 20,833 221,877 Legal 122,050 156,964 (34,914) 120,424 Finance and elections 459,601 443,519 16,082 483,024 Assessing 102,020 99,993 2,027 99,890 Planning 15,646 15,331 315 14,166 ' General government buildings 172,149 162,624 9,525 332,280 Total general government 1,297,515 1,285,382 12,133 1,429,627 Public safety Police /animal /civil defense 1,778,931 1,697,065 81,866 1,709,827 Fire 775,187 705,719 69,468 711,959 ' Inspections 145,962 135,431 10,531 129,757 Total public safety 2,700,080 2,538,215 161,865 2,551,543 Public works highways and streets ' Engineering 250,347 236,855 13,492 270,338 Maintenance 634,040 654,278 2( 0,238) 492,304 Total public works highways and streets 884,387 891,133 (6,746) 762,642 (continued) -67- CITY OF COLUMBIA HEIGHTS, MINNESOTA General Fund (continued) Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Expenditures (continued) Current Sanitation Parks and recreation Library Contingencies Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance Beginning of year Residual equity transfers End of year Budget Exhibit F-2 1991 1990 Variance Favorable Actual (Unfavorable) Actual 141,376 108,108 1,131,142 954,236 410,923 390,251 5,000 3,803 6,570,423 6,171,128 33,268 176,906 20,672 1,197 (465,158) (12,224) 452,934 522,841 570,988 48,147 (85,000) 1( 24,300) 3( 9,300) 437,841 446,688 8,847 (27,317) 434,464 461,781 2,598,631 2,598,631 — 184,627 661,566 368,363 3,072 20,207 299,357 (2,480,719) (2,181,362) (2,161,155) 4,717,137 $ 2,571,314 $ 3,033,095 $ 461,781 $ 2,598,631 -68- CITY OF COLUMBIA HEIGHTS, MINNESOTA General Fund Statement of Revenues - Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Revenues Taxes Ad valorem Penalties and interest Total taxes Licenses and permits Licenses Permits Total licenses and permits Intergovernmental Federal grants Civil defense State grants Local government aid Property tax relief Law officer training Fire training Police Relief Association Fire Relief Association Other County aid Street maintenance County grant School district Total intergovernmental Charges for services General government Library Public safety Public works Parks and recreation Total charges for services Fines and forfeitures Library Public safety Total fines and forfeitures Other revenues Interest earned on investments Miscellaneous Proceeds from sale of land Other refunds Total other revenues Total revenues 1991 Variance Favorable Budget Actual (Unfavorable) $ 2,226,207 $ 2,215,074 $ (11,133) 7,000 10,729 3,729 2,233,207 2,225,803 (7,404) Exhibit F-3 1990 Actual $ 2,060,695 6,774 2,067,469 80,110 92,364 12,254 85,307 64,000 72,581 8,581 62,280 144,110 164,945 20,835 147,587 4,185 3,697 (488) 4,108 1,888,568 1,885,919 (2,649) 2,074,028 917,862 917,861 (1) 804,276 8,000 7,959 (41) 9,200 - 1,915 1,915 - 109,000 121,694 12,694 112,488 64,000 56,427 (7,573) 59,058 - 16,094 16,094 53 18,060 18,060 - 18,060 - 11,049 11,049 4,658 7,653 - (7,653) - 3,017,328 3,040,675 23,347 3,08.5,929 31,490 31,893 403 35,379 4,200 5,629 1,429 4,339 88,480 94,001 5,521 82,150 127,700 56,332 (71,368) 55,198 147,250 152,329 5,079 54,397 399,120 340,184 (58,936) 231,463 6,500 8,684 2,184 7,253 122,700 107,702 1( 4,998) 116,252 129,200 116,386 (12,814) 123,505 158,000 127,887 (30,113) 286,085 24,300 141,831 117,531 38,880 - 1,193 1,193 - - - - 729 182,300 270,911 88,611 325,694 $ 6,105,265 $ 6,158,904 $ 53,639 $ 5,981,647 .' CITY OF COLUMBIA HEIGHTS, MINNESOTA General Fund Statement of Expenditures- Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Faded December 31, 1990) Expenditures General government Council and manager Council Manager Legal Total council and manager Administrative services Finance Elections Assessing Planning General government buildings Total administrative services Total general government Public safety Police Fire Inspections Civil defense Animal control Total public safety Public works highways and streets Engineering Streets Street lighting Traffic signs /signals Total public works highways and streets Sanitation Parks and recreation Library Contingencies Total expenditures -70- Supplies Personal and Budget Services Services $ 194,617 $ 100,703 $ 95,649 231,432 183,384 24,415 122,050 - 156,964 548,099 284,087 277,028 424,733 332,665 57,408 34,868 15,801 3,142 102,020 43,913 56,080 15,646 - 15,331 172,149 9,815 137,798 749,416 402,194 269,759 1,297,515 686,281 546,787 1,743,014 1,525,573 138,354 775,187 641,111 56,167 145,962 118,809 16,622 25,037 10,502 9,257 10,880 - 10,523 2,700,080 2,295,995 230,923 250,347 154,835 66,906 474,354 240,892 214,591 100,649 314 78,810 59,037 27,798 28,394 884,387 423,839 388,701 141,376 33,138 74,970 1,131,142 603,614 278,236 410,923 250,403 116,661 5,000 - 3,803 $ 6,570,423 $ 4,293,270 $ 1,640,081 Exhibit F-4 1991 1990 Actual Variance Capital Favorable Outlay Total (Unfavorable) Actual $ - $ 196,352 $ (1,735) $ 157,966 2,800 210,599 20,833 221,877 - 156,964 3( 4,914) 120,424 2,800 563,915 (15,816) 500,267 23,673 413,746 10,987 405,405 10,830 29,773 5,095 77,619 - 99,993 2,027 99,890 - 15,331 315 14,166 15,011 162,624 9,525 332,280 49,514 721,467 27,949 929,360 52,314 1,285,382 12,133 1,429,627 2,856 1,666,783 76,231 1,690,382 8,441 705,719 69,468 711,959 - 135,431 10,531 129,757 - 19,759 5,278 11,506 - 10,523 357 7,939 11,297 2,538,215 161,865 2,551,543 15,114 236,855 13,492 270,338 60,514 515,997 (41,643) 361,767 - 79,124 21,525 78,833 2,965 59,157 (120) 51,704 78,593 891,133 (6,746) 762,642 - 108,108 33,268 184,627 72,386 954,236 176,906 661,566 23,187 390,251 20,672 368,363 - 3,803 1,197 3,072 $_237,777 $ 6,171,128 $ 399,295 $ 5,961,440 -71- SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources which finance specified activities as required by law or administrative regulation. Municipal State Aid Fund - maintained according to State Statute for maintenance and construction of streets or municipal State aid systems. Cable Television Fund - established to account for revenues and expenditures associated with cable television franchise. Paratransit Fund - established by agreement with the Minnesota Department of Transportation to account for the receipt of State grants and rider fees and expenditures for service. D.A.R.E. Program Fund - established in 1991 to account for revenues and expenditures of D.A.R.E. (Drug Awareness) Program. Recreation Contributed Projects Fund - established to monitor contributions for recreational activities and related expenditures. Contributed Projects Fund - established in 1991 to monitor contributions and related expenditures. -72- CITY OF COLUMBIA FIGHTS, MINNESOTA Special Revenue Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Liabilities Accounts payable Municipal $ 4,114 $ 25,966 Contracts payable— retained percentage State Cable — Accrued salaries and withholdings payable Aid Television Paratransit Assets — — — Cash and investments 42,907 — — Cash and cash equivalents $ — $ 166,656 $ 16,212 Temporary investments — — — Total cash and investments — 166,656 16,212 Receivables Accounts — 16,494 19,816 Interest — 1,619 166 Due from other governmental units 55,142 1,758 595 Due from other funds — 42,907 — Total assets $ 55,142 $ 229,434 $ 36,789 Liabilities and Fund Equity (Deficit) Liabilities Accounts payable $ 22,983 $ 4,114 $ 25,966 Contracts payable— retained percentage — — — Accrued salaries and withholdings payable 86 53 — Due to other governmental units — — — Due to other funds 42,907 — — Totalliabilities 65,976 4,167 25,966 Fund equity (deficit) Fund balance (deficit) Unreserved Designated for subsequent years' expenditures 2,860 482 — Undesignated 1( 3,694) 224,785 10,823 Total fund equity (deficit) 1( 0,834) 225,267 10,823 Total liabilities and fund equity $ 55,142 $ 229,434 $ 36,789 -73- Exhibit Gl Recreation D.A.R. Contributed Contributed Totals Program Projects Projects 1991 1990 $ 2,010 $ 42,748 $ 3,913 $ 231,539 $ - - - - - 49,436 2,010 42,748 3,913 231,539 49,436 - - - 36,310 20,479 - - - 1,785 5,839 263 - - 57,758 259,789 - - - 42,907 207,836 $ 2,273 $ 42,748 $ 3,913 $ 370,299 $ 543,379 $ 550 $ 657 $ - $ 54,270 $ 15,179 - - - - 6,849 139 3,324 - 3,000 - - - 42,907 207,836 550 657 - 97,316 236,188 - - - 3,342 24,052 1,723 42,091 3,913 269,641 283,139 1,723 42,091 3,913 272,983 307,191 $ 2,273 $ 42,748 $ 3,913 $ 370,299 $ 543,379 -74- CITY OF COLUMBIA HEIGHTS, MINNESOTA Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 Revenues Intergovernmental Fees /program revenue Interest Otherrevenues Miscellaneous Contributions Total revenues Expenditures Parks and recreation Personal services Supplies Other services and charges Capital outlay Other expenditures Total parks and recreation Other Personal services Supplies Other services and charges Capital outlay Total other Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expen- ditures and other financing uses Fund balance (deficit) Beginning of year Residual equity transfers End of year -75- ✓� ✓ �� 5 - Municipal 550 ado State Cable 84,262 Aid Television Paratransit $ 162,564 $ - $ 46,430 - 68,227 16,135 - 15,902 1,634 - 26,758 - 162,564 110,887 64,199 12,184 499 - 96 550 - 48,418 10,612 84,262 63,705 14,052 - 124,403 25,713 84,262 124,403 25,713 84,262 38,161 85,174 (20,063) 35,480 - 5,000 123,855 69,788 (8,060) 88,375 69,788 (3,060) (50,214) 15,386 (23,123) 39,380 209,881 33,946 $ 1( 0,834) $ 225,267 $ 10,823 Exhibit G2 0 j(� �� 1 - 619,724 I d l el Recreation 61,714 _ _ D.A.R.E. Contributed Contributed Totals _ - Program Projects Projects 1991 _ 1990 $ _ $ - $ - $ 208,994 $ 789,393 _ - - 84,362 429,653 _ - - 17,536 17,303 _ - - 26,758 6,061 2,552 60,605 1,400 64,557 37,632 2,552 60,605 1,400 402,207 1,280,042 1,723 20,620 1,400 (34,208) 191,222 - 23,984 - 307,191 142,282 - (2,513) 2,513 - (26,313) $ 1,723 $ 42,091 $ 3,913 $ 272,983 $ 307,191 -76- - 619,724 _ - 61,714 _ _ _ - 104,915 _ _ _ - 445 _ - - - 66,934 _ _ _ - 853,732 _ = - 12,683 25,940 1,787 21,227 - 23,660 19,931 542 7,738 - 151,572 120,136 - 11,020 - 88,777 158,853 2,329 39,985 - 276,692 324,860 2,329 39,985 - 276,692 1,178,592 223 20,620 1,400 125,515 101,450 1,500 - - 41,980 137,484 _ - - (201,703) (47,712) 1,500 - - (159,723) 89,772 1,723 20,620 1,400 (34,208) 191,222 - 23,984 - 307,191 142,282 - (2,513) 2,513 - (26,313) $ 1,723 $ 42,091 $ 3,913 $ 272,983 $ 307,191 -76- CI'T'Y OF COLUMBIA HEIGHTS, MINNESOTA Municipal State Aid Street Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Revenues Intergovernmental State of Minnesota Maintenance Construction Other revenues Miscellaneous Total revenues Expenditures Maintenance Personal services Supplies Other services and charges Capital outlay Construction Personal services Supplies Other services and charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Maintenance Construction Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expert ditures and other financing uses Fund balance (deficit) Beginning of year End of year Exhibit G3 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual $ 120,000 $ 130,713 $ 10,713 $ 88,800 469,500 31,851 (437,649) 363,634 - - - 606 589,500 162,564 (426,936) 453,040 13,482 10,514 2,968 7,293 3,100 96 3,004 6,534 3,030 9,356 (6,326) 26,487 74,500 59,181 15,319 7,819 2,450 1,670 780 18,647 - - - 303 30,050 39,062 (9,012) 5,292 414,500 4,524 409,976 136,977 541,112 124,403 416,709 209,352 48,388 38,161 (10,227) 243,688 - 35,480 35,480 - - (104,556) (104,556) - 2( 2,500) 1( 9,299) 3,201 - 2( 2,500) 8( 8,37 665 25,888 (50,214) (76,102) 243,688 39,380 39,380 - (204,308) $ 65,268 $ 1( 0,834) $ (76,102 $ 39,380 -77- Exhibit G-4 CITY OF COLUMBIA HEIGHTS, MIP4NESOTA Cable Television Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) -78- 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual Revenues Franchise fees $ 66,000 $ 68,227 $ 2,227 $ 60,361 Interest 8,500 15,902 7,402 15,404 Other revenues Miscellaneous - 26,758 26,758 5,380 Total revenues 74,500 110,887 36,387 81,145 Expenditures Personal services 882 499 383 - Supplies 2,755 550 2,205 375 Other services and charges 37,185 10,612 26,573 58,004 Capital outlay 21,400 14,052 7,348 774 Total expenditures 62,222 25,713 36,509 59,153 Excess of revenues over expenditures 12,278 85,174 72,896 21,992 Other financing uses Operating transfers (out) 69,788 6( 9,788) - 41,432 Excess (deficiency) of revenues over expenditures and other financing uses (57,510) 15,386 72,896 (19,440) Fund balance Beginning of year 209,881 209,881 - 229,321 End of year $ 152,371 $ 225,267 $ 72,896 $ 209,881 -78- CITY OF COLUNIBIAHF,IGHTS, MWNESOTA Paratransit Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Revenues Intergovernmental Paratransit fees Interest Total revenues Expenditures Supplies Other services and charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance (deficit) Beginning of year End of year Exhibit G-5 1991 1990 Budget Actual $ 24,500 $ 46,430 9,500 16,135 - 1,634 34,000 64,199 500 - 80,947 84,262 81,447 84,262 (47,447) (20,063) 5,000 5,000 6,827 8,060 1,827 (3,060) (49,274) (23,123) 33,946 33,946 $ 1( 5,328) $ 10,823 -79- Variance 6,894 Favorable 5,000 (Unfavorable) Actual $ 21,930 $ 23,415 6,635 11,158 1,634 1,899 30,199 36,472 500 166 (3,315) 29,412 (2,815) 29,578 27,384 6,894 - 5,000 (1,233) (6,280) 1,233 (1,280) 26,151 5,614 - 28,332 $ 26,151 $ 33,946 CITY OF COLUMBIA FIGHTS, MINNESOTA Recreation Contributed Projects Comparative Statement of Revenues, Expenditures, and Changes in Fund Balance Years Ended December 31, 1991 and 1990 Revenues Contributions Expenditures Supplies Other services and charges Capital outlay Total expenditures Excess of revenues over expenditures Fund balance Beginning of year Residual equity transfers End of year -80- Exhibit G6 1991 1990 $ 60,605 $ 30,148 21,227 12,553 7,738 941 20,620 3,371 23,984 17,634 (2,513) 2,979 $ 42,091 $ 23,984 DEBT SERVICE FUNDS ' Debt Service Funds are used to account for the collection of tax levies and other revenues and to record the payment of principal and interest on outstanding General Obligation Bonds. rSpecial Assessment Refunding Bonds of 1987 Fund - used to account for revenue and expenditures associated with Special Assessment Bonds of 1987. rTax Increment Bonds Funds - a separate fund is used to account for each separate Tax Increment Bond Issue revenue and expenditures. -81- CITY OF COLUMBIA HEIGHTS, MQNNESOTA Debt Service Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Tax Special Increment Increment Assessment Tax Refunding Increment Bonds of 1987 Bonds Assets Cash and investments Temporary investments $ 1,196,770 $ 1,814,029 Deposited with fiscal agents — 57,943 Total cash and investments 1,196,770 1,871,972 Cash and investments in escrow — — Receivables Special assessments Tax Tax Increment Increment Bonds of 1984 Bonds of 1985 Delinquent — — — — Deferred 89,703 — — — Taxes Unremitted — 32,667 — — Delinquent — 323,052 — — Interest 7,581 9,379 — — Total assets $ 1,294,054 $ 2,237,070 $ — $ — Liabilities and Fund Equity Liabilities Deferred revenue Property taxes— delinquent $ — $ 323,052 $ — $ — Special assessments 89,703 — — — Accrued interest payable — 57,943 — — Total liabilities 89,703 380,995 — — Fund equity Fund balance Designated for debt service 1,204,351 1,856,075 — — Total liabilities and fund equity $ 1,294,054 $ 2,237,070 $ — $ — -82- Exhibit 11-1 Tax Tax Capital Tax Increment Increment Appreciation Increment Refunding Taxable Bonds Refunding Totals Bonds of 1987 Bonds of 1987 of 1990 Bonds of 1991 1991 1990 $ — $ 3,010,799 $ 3,296,922 — — — 57,943 57,943 — — — — 3,068,742 3,354,865 — 6,543,268 6,543,268 1,800,000 — — — — 109,928 — 89,703 591,415 — — — 32,667 3,847 — — — — 323,052 219,256 — — 16,960 74,933 $ 6,543,268 $ 10,074,392 $ 6,154,244 $ — $ 323,052 $ 219,256 — 89,703 701,343 — 57,943 57,943 — — — 470,698 978,542 6,543,268 9,603,694 5,175,702 $ 6,543,268 $ 10,074,392 $ 6,154,244 -83- CITY OF COLUMBIA HEIGHTS, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) -84- Special Assessment Tax Tax Tax Refunding Increment Increment Increment Bonds of 1987 Bonds Bonds of 1984 Bonds of 1985 Revenues Tax increments $ — $ 1,248,680 $ — $ — Special assessments 277,171 — — — Intergovernmental — — — — Interest 74,442 92,101 — — Other revenues — 4,276 — — Total revenues 351,613 1,345,057 — — Expenditures Debt service Principal retirement 275,000 — 125,000 1,850,000 Interest and fiscal charges 83,127 — 46,353 80,420 Miscellaneous — 72,015 — — Total expenditures 358,127 72,015 171,353 1,930,420 Excess (deficiency) of revenues over expenditures (6,514) 1,273,042 (171,353) (1,930,420) Other financing sources (uses) Bond proceeds — — — — Operating transfers in — — 171,353 1,930,420 Operating transfers (out) — (1,581,804) — — Total other financing sources (uses) — (1,581,804) 171,353 1,930,420 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses (6,514) (308,762) — — Fund balance Beginning of year 1,210,865 2,164,837 — — Residual equity transfers — — — — End of year $ 1,204,351 $ 1,856,075 -84- Exhibit H-2 Tax Tax Capital Tax Increment Increment Appreciation Increment Refunding Taxable Bonds Refunding Totals Bonds of 1987 Bonds of 1987 of 1990 Bonds of 1991 1991 1990 $ - $ - $ - $ - $ 1,248,680 $ 1,084,158 - - - - 277,171 463,410 - - - - - 5,236 62,433 - - 21,587 250,563 592,472 - - - - 4,276 31,792 62,433 - - 21,587 1,780,690 2,177,068 525,000 120,000 - - 2,895,000 7,705,000 604,093 93,063 308 148,319 1,055,683 1,524,616 - - - - 72,015 94,134 1,129,093 213,063 308 148,319 4,022,698 9,323,750 (1,066,660) (213,063) (308) (126,732) (2,242,008) (7,146,682) - - - 6,670,000 6,670,000 2,363,724 1,066,660 213,063 308 - 3,381,804 7,653,324 (1,800,000) - - - (3,381,804) (10,363,902) (733,340) 213,063 308 6,670,000 6,670,000 (346,854) (1,800,000) - - 6,543,268 4,427,992 (7,493,536) 1,800,000 - - - 5,175,702 12,665,931 - - - - - 3,307 $ - $ - $ - $ 6,543,268 $ 9,603,694 $ 5,175,702 -85- CITY OF COLUMBIA HEIGHTS, MDZ;ESOTA Special Assessment Refunding Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Faded December 31, 1990) Revenues Special assessments Interest Other revenues Miscellaneous Total revenues Expenditures Debt service Principal retirement Interest and fiscal charges Miscellaneous Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance (deficit) Beginning of year End of year Exhibit 1-1-3 (359,247) 359,247 359,247 (6,514) 352,733 116,315 (359,247) - - (387,785) (359,247) (387,785) (6,514) (6,514) (271,470) 1,210,865 1,210,865 — 1,482,335 $ 1,210,865 $ 1,204,351 $ (6,514) $ 1,210,865 -86- 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual $ — $ 277,171 $ 277,171 $ 368,044 — 74,442 74,442 93,216 — — — 23,302 — 351,613 351,613 484,562 275,000 275,000 — 265,000 84,247 83,127 1,120 98,402 — — — 4,845 359,247 358,127 1,120 368,247 (359,247) 359,247 359,247 (6,514) 352,733 116,315 (359,247) - - (387,785) (359,247) (387,785) (6,514) (6,514) (271,470) 1,210,865 1,210,865 — 1,482,335 $ 1,210,865 $ 1,204,351 $ (6,514) $ 1,210,865 -86- CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Increment Bonds Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Revenues Tax increments Special assessments Intergovernmental Interest Other revenues Proceeds from sales of land Miscellaneous Total revenues Expenditures Debt service Principal retirement Interest and fiscal charges Miscellaneous Redevelopment tax increment Multi -use redevelopment plan Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance Beginning of year Residual equity transfers End of year Budget $ 1,060,000 95,366 100,000 1,255,366 1991 $ 1,248,680 92,101 4,276 60,000 60,000 — 12,015 6000 72,015 1,195,366 1,273,042 (1,589,367) (1,581,804) (1,589,367) (1,581,804) (394,001) (308,762) Variance Favorable (Unfavorable) $ 188,680 (95,366) (7,899) 4,276 89,691 12,015 12,015 77,676 7,563 7,563 85,239 Exhibit H-4 Actual $ 1,084,158 95,366 5,236 128,860 6,010 2,480 1,322,110 7,275,000 447,213 60,000 29,289 7,811,502 (6,489,392) 7,063,500 (576,741) 6,486,759 (2,633) 2,164,837 2,164,837 — 2,164,163 — — — 3,307 $ 1,770,836 $ 1,856,075 $ 85,239 $ 2,164,837 -87- CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Increment Bonds of 1984 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Expenditures Debt service Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Operating transfers in Excess of revenues and other financing sources over expenditures Fund balance Beginning of year End of year 1991 Budget Actual Exhibit 1-1-5 1990 Variance Favorable (Unfavorable) Actual $ 125,000 $ 125,000 $ — $ 115,000 47,500 46,353 1,147 57,117 172,500 171,353 1,147 172,117 (172,500) (171,353) 1,147 (172,117) 172,500 171,353 (1,147) 172,117 :: CITY OF COLUMBIA HEIGHTS, NM NESOTA Tax Increment Bonds of 1985 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Expenditures Debt service Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Operating transfers in Excess of revenues and other financing sources over expenditures Fund balance Beginning of year End of year Exhibit H-6 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual $ 1,850,000 $ 1,850,000 $ — $ 50,000 83,420 80,420 3,000 163,496 3,000 213,496 (1,933,420) (1,930,420) 3,000 (213,496) 1,933,420 1,930,420 (3,000) 213,496 -89- CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Increment Refunding Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Faded December 31, 1990) Revenues Interest from escrow Expenditures Debt service Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Operating transfers in Operating transfers (out) Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance Beginning of year End of year Exhibit 1-1-7 1991 1990 Variance Favorable Budget Actual (Unfavorable) $ 62,433 $ 62,433 $ — Actual $ 370,396 525,000 525,000 — — 605,280 604,093 1,187 619,465 1,130,280 1,129,093 1,187 619,465 (1,067,847) (1,066,660) 1,067,847 1,066,660 (1,800,000) (1,800,000) (732,153) (733,340) 1,187 (249,069) (1,187) 93,136 (7,063,500) (1,187) (6,970,364) (1,800,000) (1,800,000) — (7,219,433) 1,800,000 1,800,000 — 9,019,433 $ — $ — $ — $ 1,800,000 .1 CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Increment Taxable Bonds of 1987 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) Expenditures Debt service Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Operating transfers in Excess of revenues and other financing sources over expenditures Fund balance Beginning of year End of year 1991 Variance Favorable Budget Actual (Unfavorable) Exhibit H-8 1990 01". $ 120,000 $ 120,000 $ — $ — 94,100 93,063 1,037 97,992 214,100 213,063 1,037 97,992 (214,100) (213,063) 1,037 (97,992) 214,100 213,063 (1,037) 97,992 -91- Exhibit H-9 CITY OF COLUMBIA HEIGHTS, MINNESOTA , Tax Increment Capital Appreciation Bonds of 1990 Fund Statement of Revenues, Expenditures, and Changes in Fund Balance , Budget (GAAP Basis) and Actual Year Ended December 31, 1991 (with Comparative Actual Amounts for Year Ended December 31, 1990) 1991 1990 Variance Favorable Budget Actual (Unfavorable) Actual ' Expenditures Debt service , Interest and fiscal charges $ 1,500 $ 308 $ 1,192 $ 40,931 Excess (deficiency) of ' revenues over expenditures (1,500) (308) 1,192 (40,931) Other financing sources (uses) Bond proceeds — — — 2,363,724 Operating transfers in 1,500 308 (1,192) 13,083 Operating transfers (out) — — — (2,335,876) Total other financing sources (uses) 1,500 308 (1,192) 40,931 Excess of revenues and t other financing sources over expenditures and other financing uses — — — — ' Fund balance Beginning of year End of year $ $ $ $ r -92- ' 1 CAPITAL PROJECT FUNDS ' Capital Project Funds are maintained to account for the construction of major capital facilities. Project applications are a combination of several revenue sources, such as municipal State -aid streets, special assessments, Sewer Utility Fund, other governmental units, State and Federal grants, etc. ' Capital Improvement Fund 401 - used to account for Capital Project Funds whereby funding is prohibited by a number of internal and external services. Water Surface Management Fund 403 - used to account for revenue and expenditures associated with storm sewers and other surface water management. ' Senior Housing Fund 404 - used to build Parkview Villa South addition for senior housing. Downtown Land Acquisition Fund 405 - used for development of the downtown area of the City. Capital Improvement Fund 408 - used for projects involving State aid streets. Capital Improvement General Government Buildings Fund 411 - used to account for improve- ments to municipal buildings - library, municipal garage, and City Hall. Capital Improvement Parks Fund 412 - used to account for capital improvements in City parks. Huset Park Hazardous Cleanup Fund 413 - used to account for expenditures associated with ' reporting of possible hazardous waste dumping. Capital Improvement Projects Fund 415 - used to account for projects that will be fully assessed to affected properties. Capital Improvement Replacement Fund 431 - used to fund replacement of fixed assets and ' infrastructure as needed. -93- CITY OF COLUMBIA HEIGHTS, MINNESOTA Capital Project Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Assets Temporary investments Receivables Accounts Special assessments Unremitted Delinquent Deferred Interest Due from other governmental units Due from other funds Total assets Liabilities and Fund Equity (Deficit) Liabilities Accounts payable Contracts payable - retained percentage Accrued salaries and withholdings payable Due to other funds Due to component units Deferred revenue Total liabilities Fund equity (deficit) Fund balance (deficit) Unreserved Designated for subsequent years' expenditures Undesignated Total fund equity (deficit) Total liabilities and fund equity - 159 8,362 632 - 147,438 - - - - $ 147,438 $ 22,.534 $ 383,525 $ 83,837 $ 19,876 $ 14,816 $ - $ - $ 5,340 $ 13,983 - - - 486 - - - 197,15.5 - - - - - 2,418 - 226,440 - 2,418 5,340 - 381,107 - - (79,002) 22,534 - 78,497 19,876 (79,002) 22,534 381,107 78,497 19,876 $ 147,438 $ 22,534 $ 383,525 $ 83,837 $ 19,876 -94- Water Downtown Capital Surface Land Capital Improve- Manage- Senior Aquisi- Improve- ment ment Housing tion ment Fund 401 Fund 403 Fund 404 Fund 405 Fund 408 $ - $ 22,375 $ 375,163 $ 83,205 $ 19,876 - 159 8,362 632 - 147,438 - - - - $ 147,438 $ 22,.534 $ 383,525 $ 83,837 $ 19,876 $ 14,816 $ - $ - $ 5,340 $ 13,983 - - - 486 - - - 197,15.5 - - - - - 2,418 - 226,440 - 2,418 5,340 - 381,107 - - (79,002) 22,534 - 78,497 19,876 (79,002) 22,534 381,107 78,497 19,876 $ 147,438 $ 22,534 $ 383,525 $ 83,837 $ 19,876 -94- Exhibit 1-1 Capital Improve- Capital ment Capital Huset Capital Improve - Govern- Improve- Park Improve- ment ment ment Hazardous ment Replace - Building Parks Cleanup Projects ment Totals Fund 411 Fund 412 Fund 413 Fund 415 Fund 431 1991 1990 $ 264,815 $ 336,190 $ 33,302 $ - $ 2,496,347 $ 3,631,273 $ 5,544,402 - - - 4,308 - 4,308 - - - - 1,591 - 1,591 - - - - 77,005 - 77,005 - - - - 475,730 - 475,730 - 1,900 2,531 241 263 18,709 32,797 35,208 - - - - - 147,438 - - - - - 199,186 199,186 81,315 $ 266,715 $ 338,721 $ 33,543 $ 558,897 $ 2,714,242 $ 4,569,328 $ 5,660,925 1,366 - 2,031 - 554,326 - 557,723 $ 20,156 $ 19,649 15,349 19,546 - 486 27 - 199,186 81,315 - 2,418 231,783 - 554,326 - - 791,921 352,320 - - - - 147,632 528,739 2,420,650 266,715 338,721 33,543 1,174 2,566,610 3,248,668 2,887,955 266,715 338,721 33,543 1,174 2,714,242 3,777,407 5,308,605 $ 266,71.5 $ 338,721 $ 33,543 $ 558,897 $ 2,714,242 $ 4,569,328 $ 5,660,925 -95- CITY OF COLUMBIA HEIGHTS, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Water Capital Surface Improve— Manage- ment ment Revenues Special assessments $ — $ — $ Interest — 1,563 Other revenues Miscellaneous 453,738 — Private grants — — Contributions 3,200 — _ Total revenues 456,938 1,563 Expenditures Other project expenditures 530,517 Capital Excess (deficiency) Aquisi— of revenues over Housing expenditures (73,579) Other financing sources (uses) Fund 405 Operating transfers in 100,344 Operating transfers (out) — Total other financing sources (uses) 100,344 6,208 Excess (deficiency) of revenues and other financing sources 82,105 over expenditures and Downtown 1,762,657 14,735 1,563 (1,680,552) (8,527) — 13,945 13,945 other financing uses 26,765 1,563 (1,680,552) (8,527) 13,945 Fund balance (deficit) Beginning of year (105,767) 20,971 2,061,659 87,024 5,931 Residual equity transfers — — — — — End of year $ 7( 9,002) $__22 534 $ 381,107 $ 78,497 $ 19,876 e Land Capital Senior Aquisi— Improvt�- Housing tion ment Fund 404 Fund 405 Fund 408 82,105 6,208 — — 82,105 6,208 1,762,657 14,735 1,563 (1,680,552) (8,527) — 13,945 13,945 other financing uses 26,765 1,563 (1,680,552) (8,527) 13,945 Fund balance (deficit) Beginning of year (105,767) 20,971 2,061,659 87,024 5,931 Residual equity transfers — — — — — End of year $ 7( 9,002) $__22 534 $ 381,107 $ 78,497 $ 19,876 e Exhibit I-2 Capital Improve- Capital ment Capital Huset Capital Improve - Govern- Improve- Park Improve- ment ment ment Hazardous ment Replace - Building Parks Cleanup Projects ment Totals Fund 411 Fund 412 Fund 413 Fund 415 Fund 431 1991 1990 $ - $ - $ - $ 181,373 $ - $ 181,373 $ - 18,663 24,848 2,360 2,579 183,713 322,039 104,342 - - - 58,940 - 512,678 440,344 - - - - - - 20,971 - - - - - 3,200 - 18,663 24,848 2,360 242,892 183,713 1,019,290 565,657 4,925 19,681 862 193,835 75,152 2,602,364 1,395,585 13,738 5,167 1,498 49,057 108,561 (1,583,074) (829,928) - - - - 86,499 200,788 5,964,299 14( 8,912) - (148,912 (316,853) 148,912 86,499 51,876 5,647,446 13,738 5,167 1,498 (99,855) 195,060 (1,531,198) 4,817,518 252,977 333,554 32,045 101,029 2,519,182 5,308,605 547,170 - - - - - - (56,083) $ 266,715 $ 338,721 $ 33,543 $ 1,174 $ 2,714,242 $ 3,777,407 $ 5,308,605 -97- IENTERPRISE FUNDS ' The authority for these types of funds is derived from Section 69(b) of the City Charter which allows for Utility or other Public Service Enterprise Funds. ' The Enterprise Funds are a member of the Proprietary Fund Type category, and as such are accounted for on the accrual basis of accounting. Revenue in the Enterprise Funds is recognized when it is earned and expenses are recognized when they are incurred. ' The Enterprise Funds are used to account for operations that are either financed and operated in a manner similar to private business enterprises or where the governing body has decided that periodic determination of revenue 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 revenue and expenses associated with water services to area residents. Sewer Utility Fund - used to account for revenue and expenses associated with sewer disposal ' within the City. Refuse Utility Fund - used to account for revenue and expenses associated with organized ' collection of refuse and recycling in the City. Liquor Fund - used to account for revenue and expenses associated with the operation of two off- sale liquor stores. M CITY OF COLUMBIA HEIGHTS, MINNESOTA Enterprise Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Assets Current assets Cash and investments (deficit) Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Due from other governmental units, current portion Prepaid expense Inventory, at cost Total current assets Longterm assets Due from other governmental units, net of current portion Fixed assets Land Buildings Improvements other than buildings Machinery and equipment Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities Accounts payable Accrued salaries and withholdings payable Due to other governmental units Total current liabilities Fund equity Contributed capital Property owners /customers Federal Total contributed capital Retained earnings Reserved for capital replacement /construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Water Sewer $ 25,392 $ (43,674) 693,352 2,046,644 718,744 2,002,970 166,585 175,992 5,374 15,195 15,648 - 56,821 2,535 - 893,238 2,266,626 156,434 45,223 36,586 233,236 45,690 2,661,821 3,007,791 242,580 366,685 3,182,860 3,456,752 1,489,016 1,817,165 1,693,844 1,639,587 $ 2,587,082 $ 4,062,647 $ 53,846 $ 13,435 15,008 14,205 75,690 27,640 430,102 746,007 453,000 - 883,102 746,007 679,674 2,370,028 948,616 918,972 1,628,290 3,289,000 2,511,392 4,035,007 $ 2,587,082 $ 4,062,647 Exhibit J-1 Totals Refuse Liquor 1991 1990 $ 106,672 $ 278,765 $ 367,155 $ 156,138 11111 302,754 3,043,861 2,900,000 107,783 581,519 3,411,016 3,056,138 338,780 - 681,357 652,176 832 3,670 25,071 109,532 49,457 773 65,878 100,545 - - 56,821 51,642 - 485,445 487,980 443,211 496,852 1,071,407 4,728,123 4,413,244 156,434 172,874 - 13,051 94,860 94,860 - 183,522 462,448 462,448 2,890 100,093 5,772,595 5,645,177 615 201,925 811,805 723,377 3,505 498,591 7,141,708 6,925,862 1,458 222,821 3,530,460 3,310,771 2,047 275,770 3,611,248 3,615,091 $ 498,899 $ 1,347,177 $ 8,495,805 $ 8,201,209 $ 28,526 $ 175,946 $ 271,753 $ 221,906 145 28,018 57,376 52,256 - 42,740 49,576 52,829 28,671 246,704 378,705 326,991 1,176,109 1,241,338 - - 453,000 453,000 - - 1,629,109 1,694,338 - - 3,049,702 2,955,000 470,228 1,100,473 3,438,289 3,224,880 470,228 1,100,473 6,487,991 6,179,880 470,228 1,100,473 8,117,100 7,874,218 $ 498,899 $ 1,347,177 $ 8,495,80.5 $ 8,201,209 -100- CiIY OF COLUMBIA HE1GI TI S, MINNESOTA Enterprise Funds Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Retained earnings Beginning of year 1,542,149 3,361,635 End of year $ 1,628,290 $_1,289 000 -101- Water Sewer Operating revenues Charges for services Customer service $ 5,236 $ - Penalties 25,043 - Sewer service charges - 774,047 Refuse service charge - - Charges for sales Water 773,324 - Meter 4,624 - Liquor - - Beer - - Wine - - Other - - Intergovernmental - - Total operating revenues 808,227 774,047 Operating expenses Cost of sales and services 386,409 641,976 Distribution 287,971 216,618 Administration 7,124 6,988 Collection and disposal - - Recycling - - Hazardous waste - - Cost of goods sold - - Operating expense - - Depreciation 76,933 132,472 Total operating expenses 758,437 998,054 Operating income (loss) 49,790 (224,007) Nonoperating revenues (expense) Interest income 52,770 156,438 Miscellaneous revenue 1,293 - Miscellaneous expense (127) (127) Total nonoperating revenues (expense) 53,936 156,311 Income (loss) before operating transfers 103,726 (67,696) Operating transfers in 133,095 84,183 Operating transfers (out) 176,974 1( 28,057) Total operating transfers 43,879 (43,874) Net income (loss) 59,847 (111,570) Credit for depreciation on contributed assets 26,294 38,935 Retained earnings Beginning of year 1,542,149 3,361,635 End of year $ 1,628,290 $_1,289 000 -101- Exhibit J--2 ' Totals Refuse Liquor 1991 1990 ' $ $ $ 5,236 $ 7,814 _ _ 25,043 21,130 - - 774,047 692,697 1,523,154 - 1,523,154 1,456,042 - - 773,324 723,219 - - 4,624 4,412 ' 1,372,340 1,372,340 1,285,812 _ 2,373,551 2,373,551 2,017,499 - 409,671 409,671 404,806 - 633,781 633,781 520,870 50,458 50,458 103,465 1,573,612 4,789,343 7,945,229 7,237,766 ' - - 1,028,385 991,674 - - 504,589 461,307 12,552 - 26,664 30,775 1,122,048 1,122,048 1,258,272 305,061 - 305,061 22,346 2,159 - 2,159 23 3,910,181 3,910,181 3,490,170 451,418 451,418 446,017 351 33,025 242,781 184,456 1,442,171 4,394,624 7,593,286 6,885,040 131,441 394,719 351,943 352,726 8,173 36,038 253,419 332,422 25 8,162 9,480 5,783 - 1,564 (1,818) (2,655) 8,198 42,636 261,081 335,550 139,639 437,355 613,024 688,276 217,278 2,955,000 67,95 2( 14,432) (587,420) _ (4,258,860) 67,95 214,432 370,142 (1,303,860) 71,682 222,923 242,882 (615,584) 65,229 65,229 398,546 877,550 6,179,880 6,730,235 $ 470,228 $ 1,100,473 $ 6,487,991 $ 6,179,880_ 1 -102- CITY OF COLUMBIA HEIGHTS, MINNESOTA Enterprise Funds Combining Statement of Cash Flows Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Miscellaneous expense Net cash provided (used) by operating activities Cash flows from noncapital financing activities Operating transfers (out) to other funds Cash flows from capital and related financing activities Acquisition of fixed assets Disposition of fixed assets Net cash used by capital and related financing activities Cash flows from investing activities Net change in investments Interest received on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents (deficit) Beginning of year End of year -103- $ 797,160 $ 806,405 (486,610) (763,427) (200,355) (127,916) 1,293 — (127) (127 111,361 (85,065) (43,879) (43,874) (124,393) (57,310) (124,393) (57,310) (93,351) (46,644) (85,881) (30,603) 111,273 1( 3,071) $ 25,392 $ 4( 3,674) Refuse Liquor Exhibit J-3 Totals 1991 1990 $ 1,573,874 $ 4,788,924 $ 7,966,363 $ 7,168,929 (1,411,825) (4,068,648) (6,730,510) (6,096,764) (1,500) (287,666) (617,437) (569,456) 25 8,162 9,480 5,783 — (1,564) (1,818) (2,655) 160,574 439,208 626,078 505,837 (67,957) (214,432) (370,142) (1,303,860) — (57,235) (238,938) (447,178) — — — 5,240 — (57,235) (238,938) (441,938) (1,112) (2,754) (143,861) 700,000 9,285 61,924 337,880 334,157 8,173 59,170 194,019 1,034,157 100,790 226,711 211,017 (205,804) 5,882 52,054 156,138 361,942 $ 106,672 $ 278,765 $ 367,155 $ 156,138 (continued) -104- CITY OF COLUMBIA HEIGHTS, MINNESOTA Enterprise Funds (continued) Combining Statement of Cash Flows Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) Adjustments to reconcile operating (loss) to net cash provided (used) by operating activities Miscellaneous revenue Miscellaneous expense Depreciation expense Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in due from other governmental units (Increase) in prepaid expenses (Increase) in inventory, at cost Increase (decrease) in accounts payable Increase in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Total adjustments Net cash provided (used) by operating activities -105- 1 u Water Sewer i $ 49,790 $ (224,007) 1,293 — (127) (127) 76,933 132,472 (11,067) (4,488) — 37,638 — (5,179) (188) — (4,266) (21,405) (556) 31 (451) — 61,571 138,942 $ 111,361 $ (85,065) r 1 Exhibit 3-3 Totals Refuse Liquor 1991 1990 r $ 131,441 $ 394,719 $ 351,943 $ 352,726 25 8,162 9,480 5,783 (1,564) (1,818) (2,655) 351 33,025 242,781 184,456 (13,776) 150 (29,181) (39,535) 14,038 (569) 51,107 (29,302) — (5,179) (734) ' _ (44,581) (44,769) (16,122) 28,350 47,168 49,847 28,662 145 5,500 5,120 5,176 r— (2,802) (3,253) 17,382 29,133 44,489 274,135 153,111 $ 160,574 1 r $ 439,208 $ 626,078 $ 505,837 r r r r -106- CITY OF COLUMBIA HQGI-ffS, MINNESOTA Water Utility Fund $ - Balance Sheet $ 25,392 As of December 31, 1991 19,052 (with Comparative Totals as of December 31, 1990) Capital Capital Improve- Replace - Operating ment ment Account Account Account Assets Current assets Cash and investments Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Inventory, at cost Total current assets Fixed assets Land Buildings Improvements other than buildings Machinery and equipment Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities Exhibit J-4 Totals 1991 1990 $ 25,392 $ - $ - $ 25,392 $ 111,273 19,052 125,750 548,550 693,352 600,000 44,444 125,750 548,550 718,744 711,273 166,585 - - 166,585 155,518 - 803 4,571 5,374 16,985 2,535 - - 2,535 2,347 213,564 126,553 .553,121 893,238 886,123 45,223 - - 45,223 45,223 233,236 - - 233,236 233,236 2,661,821 - - 2,661,821 2,566,779 242,580 - - 242,580 21,322 3,182,860 - - 3,182,860 2,866,560 1,489,016 - - 1,489,016 1,412,082 1,693,844 - - 1,693,844 1,454,478_ $ 1,907,408 $ 126,553 $ 553,121 $ 2,587,082 $ 2,340,601 Accounts payable $ 53,846 $ $ $ 53,846 $ 58,112 Accrued salaries and withholdings payable 15,008 _ _ - - 15,008 15,564 Due to other governmental units 6,836 6,836 7,287 Total current liabilities 75,690 - - 75,690 80,963 Fund equity Contributed capital Property owners Federal funds Total contributed capital Retained earnings Reserved for capital replace- ment /constriction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 430,102 - - 430,102 456,396 453,000 - - 453,000 453,000 883,102 - - 883,102 909,396 - 126,553 553,121 679,674 683,940 948,616 - - 948,616 858,209 948,616 126,553 553,121 1,628,290 1,542,149 1,831,718 126,553 553,121 2,511,392 2,451,545 $ 1,907,408 $ 126,5.53 $ 553,121 $_2 87 082 $ 2,532,508 -107- Exhibit J-5 CITY OF COLUMBIA HEIGHTS, MINNESOTA Water Utility Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating expenses Cost of sales and services 386,409 Capital Capital 386,409 358,512 Distribution 287,971 Improve- Replace - 287,971 257,788 Administration Operating ment ment Totals 8,715 Depreciation Account Account Account 1991 1990 Operating revenues 758,437 - - 758,437 687,794 Charges for services 49,790 - - 49,790 68,781 Customer services $ 5,236 $ - $ - $ 5,236 $ 7,814 Penalties 25,043 - - 25,043 21,130 Charges for sales 1,293 - - 1,293 130 Water sales 773,324 - - 773,324 723,219 Meter sales 4,624 - - 4,624 4,412 Total operating revenues 808,227 - - 808,227 756,575 Operating expenses Cost of sales and services 386,409 - - 386,409 358,512 Distribution 287,971 - - 287,971 257,788 Administration 7,124 - - 7,124 8,715 Depreciation 76,933 - - 76,933 62,779 Total operating expenses 758,437 - - 758,437 687,794 Operating income 49,790 - - 49,790 68,781 Nonoperating revenues (expense) Interest income - 7,887 44,883 52,770 50,337 Miscellaneous revenue 1,293 - - 1,293 130 Miscellaneous expense (127) - - (127) 1,064 Total nonoperating revenues (expense) 1,166 7,887 44,883 53,936 49,403 Income before operating transfers 50,956 7,887 44,883 103,726 118,184 Operating transfers in 113,095 20,000 - 133,095 720,000 Operating transfers (out) (63,878) 21,334 91,762 176,974 8( 05,157) Total operating transfers 49,217 (1,334) 9( 1,762) (43,879) (85,157) Net income (loss) 100,173 6,553 (46,879) 59,847 33,027 Credit for depreciation on contributed assets 26,294 - - 26,294 26,294 Retained earnings Beginning of year 822,149 120,000 600,000 1,542,149 1,482,828 End of year $ 948,616 $ 126,553 $ 553,121 $ 1,628,290 $ 1,542,149 -108- CITY OF COLUMBIA HEIGHTS, MINNESOTA Water Utility Fund Statement of Cash Flows Years Ended December 31, 1991 and 1990 Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Miscellaneous expense Net cash provided by operating activities Cash flows from noncapital financing activities Operating transfers (out) Cash flows from capital and related financing activities Acquisition of fixed assets Cash flows from investing activities Net change in investments Interest received on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents Beginning of year End of year m Exhibit J-6 $ 797,160 $ 806,863 (486,610) (456,484) (200,355) (170,868) 1,293 130 (127) 1,064 111,361 178,577 (43,879) (85,157) (124,393) (86,493) (93,351) — 64,381 50,798 (28,970) 50,798 (85,881) 57,725 111,273 53,548 $ 25,392 $ 111,273 (continued) CITY OF COLUMBIA HEIGHTS, MD;NESOTA Water Utility Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Miscellaneous revenue Miscellaneous expense Depreciation expense Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in inventories (Decrease) in accounts payable (Decrease) in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Total adjustments Net cash provided by operating activities sm Exhibit 3-6 1991 1990 $ 49,790 $ 68,781 1,293 130 (127) (1,064) 76,933 62,779 (11,067) 50,288 (188) 608 (4,266) (6,786) (556) (1,062) (451) 4,903 61,571 109,796 $ 111,361 $ 178,577 Exhibit J-7 CITY OF COLUMBIA HEIGHTS, MINNESOTA Fund equity Contributed capital Customers Retained earnings Reserved for capital replace- ment /construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 746,007 - 746,007 784,942 - Sewer Utility Fund 2,104,815 2,370,028 2,198,940 918,972 Balance Sheet - 918,972 1,162,695 918,972 As of December 31, 1991 2,104,815 3,289,000 3,361,635 (with Comparative Totals as of December 31, 1990) 2,104,815 4,035,007 4,146,577 Capital Capital $ 2,104,815 $ 4,062,647 $ 4,195,591 Improve- Replace - Operating ment ment Totals Account Account Account 1991 1990 Assets Current assets Cash and investments (deficit) Cash and cash equivalents $ (43,674) $ - $ - $ (43,674) $ (13,071) Temporary investments (308,189) 263,528 2,091,305 2,046,644 2,000,000 Total cash and investments (deficit) (351,863) 263,528 2,091,305 2,002,970 1,986,929 Receivables Accounts 175,992 - - 175,992 171,504 Interest - 1,685 13,510 15,195 61,047 Due from other governmental units, current portion 15,648 - - 15,648 36,846 Prepaid expense 56,821 - - 56,821 51,642 Total current assets (103,402) 265,213 2,104,81.5 2,266,626 2,307,968 Long -term assets Due from other governmental units, net of current portion 156,434 - - 156,434 172,874 Fixed assets Land 36,586 - - 36,586 36,586 Buildings 45,690 - - 45,690 45,690 Improvements other than buildings 3,007,791 - - 3,007,791 2,976,139 Machinery and equipment 366,685 - - 366,685 341,027 3,4.56,752 - - 3,456,752 3,399,442 Less accumulated depreciation 1,817,165 - - 1,817,165 1,684,693 Net fixed assets 1,639,587 - - 1,639,587 1,714,749 Total assets $ 1,692,619 $ 265,213 $ 2.104,815 $ 4,062,647 $ 4,195,591 Liabilities and Fund Equity Current liabilities Accounts payable $ 13,435 $ - $ - $ 13,435 $ 34,840 Accrued salaries and withholdings payable 14,205 - - 14,205 14,174 Total current liabilities 27,640 - - 27,640 49,014 Fund equity Contributed capital Customers Retained earnings Reserved for capital replace- ment /construction Unreserved Total retained earnings Total fund equity Total liabilities and fund equity 746,007 - 746,007 784,942 - 265,213 2,104,815 2,370,028 2,198,940 918,972 - - 918,972 1,162,695 918,972 265,213 2,104,815 3,289,000 3,361,635 1,664,979 265,213 2,104,815 4,035,007 4,146,577 $ 1,692,619 $ 265,213 $ 2,104,815 $ 4,062,647 $ 4,195,591 -111- CITY OF COLUMBIA HEIGHTS, MINNESOTA Sewer Utility Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating revenues Charges for sales and services Sewer service charges Operating expenses Cost of sales and services Distribution Administration Depreciation Total operating expenses Operating loss Nonoperating revenues (expense) Interest income Miscellaneous revenue Miscellaneous expense Total nonoperating revenues (expense) Income (loss) before operating transfers Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Credit for depreciation on contributed assets Retained earnings Beginning of year End of year Capital Improve - Operating ment Account Account $ 774,047 $ - $ Capital Replace- ment Account Exhibit .I-8 Totals 1991 1990 - $ 774,047 $ 692,697 641,976 - - 641,976 633,162 216,618 - - 216,618 203,519 6,988 - - 6,988 8,463 132,472 - - 132,472 90,035 998,054 - - 998,054 935,179 (224,007) - - (224,007) (242,482) 7,227 16,547 132,664 156,438 188,729 - - - - 50 127 - - (127) - 7,100 16,547 132,664 156,311 188,779 (216,907) 16,547 132,664 (67,696) (53,703) 49,183 35,000 - 84,183 2,235,000 (78,874) 2( 1,334) (27,849) (128,057) (2,320,027) (29,691) 13,666 (27,849) (43,874) (85,027) (246,598) 30,213 104,815 (111,570) (138,730) 38,935 - - 38,935 38,935 1,126,635 235,000 2,000,000 3,361,635 3,461,430 $ 918,972 $ 265,213 $ 2,104,815 $ 3,289,000 $ 3,361,635 -112- CITY OF COLUMBIA FIGHTS, MINNESOTA Sewer Utility Fund Statement of Cash Flows Years Ended December 31, 1991 and 1990 Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Miscellaneous expense Net cash used by operating activities Cash flows from noncapital financing activities Operating transfers (out) Cash flows from capital and related financing activities Acquisition of fixed assets Cash flows from investing activities Net change in investments Interest received on investments Net cash provided by investing activities Net decrease in cash and cash equivalents Cash and cash equivalents (deficit) Beginning of year End of year -113- Exhibit 3-9 1991 1990 $ 806,405 $ 773,779 (763,427) (693,257) (127,916) (126,972) — 50 (127) — (85,065) (46,400) (43,874) (85,027) (57,310) (357,615) (46,644) — 202,290 194,593 155,646 194,593 (30,603) (294,449) 13,071 281,378 $ (43,674) $__103.0 71) (continued) CITY OF COLUMBIA HEIGHTS, MINNESOTA Sewer Utility Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 1991 Reconciliation of Operating (Loss) to Net Cash Used by Operating Activities Exhibit J-9 Operating (loss) $ (224,007) $ (242,482) Adjustments to reconcile operating (loss) to net cash used by operating activities Miscellaneous revenue — 50 Miscellaneous expense (127) — Depreciation expense 132,472 90,035 Changes in assets and liabilities (Increase) decrease in accounts receivable (4,488) 65,497 Decrease in due from other governmental units 37,638 15,585 (Increase) in prepaid expense (5,179) (734) Increase (decrease) in accounts payable (21,405) 25,132 Increase in accrued salaries and withholdings payable 31 517 Total adjustments 138,942 196,082 Net cash used by operating activities $ (85,065) $___(46,400 -114- CITY OF COLUMBIA HEIGHTS, MINNESOTA Refuse Utility Fund Balance Sheet As of December 31, 1991 and 1990 Assets Current assets Cash and investments Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Due from other governmental units Total current assets Fixed assets Improvements other than buildings Machinery and equipment Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities Accounts payable Accrued salaries and withholdings payable Total current liabilities Fund equity Retained earnings Unreserved Total liabilities and fund equity -115- Exhibit 3-10 1991 1990 $ 106,672 $ 5,882 1,111 — 107,783 5,882 338,780 325,004 832 1,944 49,457 63,495 496,852 396,325 2,890 2,890 615 615 3,505 3,505 1,458 1,108 2,047 2,397 $ 498,899 $ 398,722 $ 28,526 $ 176 145 — 28,671 176 470,228 398,546 $ 498,899 $ 398,722 Exhibit J-11 CITY OF COLUMBIA HEIGHTS, MINNESOTA Refuse Utility Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Years Ended December 31, 1991 and 1990 Operating revenues Refuse service charges $ 1,523,154 $ 1,456,042 Intergovernmental 50,458 103,465 Total operating revenues 1,573,612 1,559,507 Operating expenses Administration 12,552 13,597 Collections and disposals 1,122,048 1,258,272 Recycling 305,061 22,346 Hazardous waste 2,159 23 Depreciation 351 351 Total operating expenses 1,442,171 1,294,589 Operating income 131,441 264,918 Nonoperating revenues Interest income 8,173 5,762 Miscellaneous revenue 25 607 Total nonoperating revenues 8,198 6,369 Income before operating transfers 139,639 271,287 Operating transfers (out) (67,957) (62,399) Net income 71,682 208,888 Retained earnings Beginning of year 398,546 189,658 End of year $ 470,228 $ 398,546 -116- CITY OF COLUMBIA HEIGHTS, MINNESOTA Refuse Utility Fund Statement of Cash Flows Years Ended December 31, 1991 and 1990 Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Net cash provided by operating activities Cash flows from noncapital financing activities Operating transfers (out) Cash flows from capital and related financing activities Disposition of fixed assets Cash flows from investing activities Net change in investments Interest received on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents (deficit) Beginning of year End of year -117- 1991 $ 1,573,874 (1,411,825) (1,500) 25 160,574 (67,957) (1,112) 9,285 8,173 100,790 Exhibit 3-12 1990 $ 1,359,610 (1,294,001) (762) 607 65,454 (62,399) 3,593 5,031 5,031 11,679 5,882 (5,797) $ 106,672 $ 5,882 (continued) Exhibit J-12 CITY OF COLUMBIA HEIGHTS, MINNESOTA Refuse Utility Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 1991 1990 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income $ 131,441 $ 264,918 Adjustments to reconcile operating income to net cash provided by operating activities Miscellaneous revenue 25 607 Depreciation expense 351 351 Changes in assets and liabilities (Increase) in accounts receivable (13,776) (155,214) (Increase) decrease in due from other governmental units 14,038 (44,683) Increase (decrease) in accounts payable 28,350 (78) Increase (decrease) in accrued salaries and withholdings payable 145 (447) Total adjustments 29,133 (199,464) Net cash provided by operating activities $ 160,574 $ 65,454 ffim Exhibit J-13 CITY OF COLUMBIA FIGHTS, MPINESOTA Liquor Fund Balance Sheet As of December 31, 1991 and 1990 1991 1990 Assets Current assets Cash and investments Cash and cash equivalents $ 278,765 $ 52,054 Temporary investments 302,754 300,000 Total cash and investments 581,519 352,054 Receivables Accounts - 150 Interest 3,670 29,556 Due from other governmental units 773 204 Inventory, at cost 485,445 440,864 Total current assets 1,071,407 822,828 Fixed assets Land 13,051 13,051 Buildings 183,522 183,522 Improvements other than buildings 100,093 99,369 Machinery and equipment 201,925 168,506 498,591 464,448 Less accumulated depreciation 222,821 212,888 Net fixed assets 275,770 251,560 Total assets $ 1,347,177 $_1,074 388 Liabilities and Fund Equity Current liabilities Accounts payable $ 175,946 $ 128,778 Accrued salaries and withholdings payable 28,018 22,518 Due to other governmental units 42,740 45,542 Total current liabilities 246,704 196,838 Fund equity Retained earnings Unreserved 1,100,473 877,550 Total liabilities and fund equity $ 1,347,177 $ 1,074,388 -119- CITY OF COLUMBIA HEIGHTS, MINNESOTA liquor Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating revenues Charges for sales liquor Beer Wine Other Total operating revenues Operating expenses Cost of goods sold Operating expense Depreciation Total operating expenses Operating income Nonoperating revenues (expense) Interest income Miscellaneous revenue Miscellaneous expense Total nonoperating revenues (expense) Income before operating transfers Operating transfers (out) Net income (loss) Retained earnings Beginning of year End of year Exhibit J-14 Heights Totals Top Valu liquor 1991 1990 $ 1,136,016 $ 236,324 $ 1,372,340 $ 1,285,812 1,769,728 603,823 2,373,551 2,017,499 352,870 56,801 409,671 404,806 519,682 114,099 633,781 520,870 3,778,296 1,011,047 4,789,343 4,228,987 3,109,706 800,475 3,910,181 3,490,170 346,104 105,314 451,418 446,017 25,108 7,917 _ 33,025 31,291 3,480,918 913,706 4,394,624 3,967,478 $ 297,378 $ 97,341 394,719 261,509 -120- 36,038 87,594 8,162 4,996 (1,564) (1,591) 42,636 90,999 437,355 352,508 (214,432) (1,071,277) 222,923 (718,769) 877,550 1,596,319 $ 1,100,473 $ 877,550 CITY OF COLUMBIA HEIGHTS, MINNESOTA Liquor Fund Statement of Cash Flows Years Ended December 31, 1991 and 1990 Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Miscellaneous expense Net cash provided by operating activities Cash flows from noncapital financing activities Operating transfers (out) Cash flows from capital and related financing activities Acquisition of fixed assets Disposition of fixed assets Net cash used by capital and related financing activities Cash flows from investing activities Net change in investments Interest received on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents Beginning of year End of year -121- Exhibit J-15 $ 4,788,924 $ 4,228,677 (4,068,648) (3,653,022) (287,666) (270,854) 8,162 4,996 (1,564) (1,591) 439,208 308,206 (214,432) (1,071,277) (57,235) (3,070) 1,647 (57,235) (1,423) (2,754) 700,000 61,924 83,735 59,170 783,735 226,711 19,241 52,054 32,813 $ 278,765 $ 52,054 (continued) CITY OF COLUMBIA HEIGHTS, MINNESOTA Liquor Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities Miscellaneous revenue Miscellaneous expense Depreciation expense Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) in due from other governmental units (Increase) in inventory, at cost Increase in accounts payable. Increase in accrued salaries and withholdings payable Increase (decrease) in due to other governmental units Total adjustments Net cash provided by operating activities -122- Exhibit J-15 1991 $ 394,719 $ 261,509 8,162 4,996 (1,564) (1,591) 33,025 31,291 150 (106) (569) (204) (44,581) (16,730) 47,168 10,394 5,500 6,168 (2,802) 12,479 44,489 46,697 $ 4392208 $ 308,206 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. Central Garage Fund - 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. Insurance Fund - used to account for the costs of risk management services for the City. All costs for premiums and claims are recorded in the fund. Conventional insurance costs are allocated to various departments based on coverage plus a percentage risk factor. ' -123- CITY OF COLUMBIA HEIGHTS, MINNESOTA Internal Service Funds Combining Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Assets Current assets Cash and investments Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Prepaid expense Inventory, at cost Total current assets Fixed assets Buildings Improvements other than buildings Machinery and equipment Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities Accounts payable Accrued salaries and withholdings payable Total current liabilities Fund equity Contributed capital Municipal funds Property owners Total contributed capital Retained earnings Reserved for insurance Reserved for capital improvement Unreserved Total retained earnings Total fund equity Total liabilities and fund equity -124- Exhibit K -1 Central Totals Garage Insurance 1991 1990 $ 8,046 $ 92,221 $ 100,267 $ 128,233 24,718 306,473 331,191 320,000 32,764 398,694 431,458 448,233 3,258 245 3,503 2,875 282 2,984 3,266 9,457 - 64,925 64,925 70,686 80,520 - 80,520 80,169 116,824 466,848 583,672 611,420 307,888 - 307,888 306,529 98,629 - 98,629 97,226 97,412 - 97,412 95,169 503,929 - 503,929 498,924 153,781 - 153,781 124,079 350,148 - 350,148 374,845 $ 466,972 $ 466,848 $ 933,820 $ 986,265 $ 3,575 $ 13,657 $ 17,232 $ 27,677 22,029 - 22,029 17,362 25,604 13,657 39,261 45,039 124,196 - 124,196 124,196 64,6.53 - 64,653 64,653 188,849 - 188,849 188,849 - 453,191 453,191 496,632 26,521 - 26,521 20,000 225,998 - 225,998 235,745 252,519 453,191 705,710 752,377 441,368 453,191 894,559 941,226 $ 466,972 $ 466,848 $ 933,820 $ 986,265 Exhibit K -2 CITY OF COLUMBIA HEIGHTS, MINNESOTA Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating expenses Cost of services and space Central - Totals 242,602 Claims administration Garage Insurance 1991 1990 Operating revenues - 124,924 124,924 3,666 Charges for services - 5,440 5,440 14,794 Services to departments $ 90,068 $ - $ 90,068 $ 94,818 Use of space 112,939 - 112,939 110,205 Insurance allocation - 74,469 74,469 - Recovery of damages - 5,935 5,935 812 Charges for sales 2,765 29,302 32,067 28,026 Sales of gasoline 60,231 - 60,231 55,406 Total operating revenues 263,238 80,404 343,642 261,241 Operating expenses Cost of services and space 286,688 - 286,688 242,602 Claims administration - 29,539 29,539 25,154 Claims - 124,924 124,924 3,666 Insurance deductible - 5,440 5,440 14,794 Depreciation 29,702 - 29,702 26,748 Total operating expenses 316,390 159,903 476,293 312,964 Operating loss (53,152) (79,499) (132,651) (51,723) Nonoperating revenues Interest income 2,765 29,302 32,067 28,026 Miscellaneous revenue 9,361 13,255 22,616 117,608 Total nonoperating revenues 12,126 42,557 54,683 145,634 Income (loss) before operating transfers (41,026) (36,942) (77,968) 93,911 Operating transfers in 42,800 - 42,800 145,000 Operating transfers (out) (5,000) (6,499) (11,499) (20,000) Total operating transfers 37,800 (6,499) 31,301 125,000 Net income (loss) (3,226) (43,441) (46,667) 218,911 Retained earnings Beginning of year, as previously stated 255,745 496,632 752,377 315,819 Adjustment for improvements - - - 181,207 Beginning of year, as restated 255,745 496,632 752,377 497,026 Residual equity transfers - - - 36,440 End of year $ 252,519 $ 453,191 $ 705,710 $ 752,377 -125- CITY OF COLUMBIA HEIGHTS, MINNESOTA Internal Service Funds Combining Statement of Cash Flows Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Cash flows from operating activities Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Net cash provided (used) by operating activities Cash flows from noncapital financing activities Residual equity transfer Operating transfers in Operating transfers (out) Net cash provided (used) by noncapital financing activities Cash flows from capital and related financing activities Acquisition of fixed assets Capital contribution Net cash used by capital and related financing activities Cash flows from investing activities Net change in investments Interest earned on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents (deficit) Beginning of year End of year Exhibit K -3 Central Totals Garage Insurance 1991 1990 $ 259,980 $ 83,034 $ 343,014 $ 260,429 (183,415) (149,808) (333,223) (191,070) (113,736) - (113,736) (107,352) 9,361 13,255 22,616 117,608 (27,810) (53,519) (81,329) 79,615 - - - 36,440 42,800 - 42,800 - 5,000 (6,499) 11,499 125,000 37,800 (6,499) 31,301 161,440 (5,005) - (5,005) (131,600) - - - 94,196 (5,005) - (5,005) (37,404) (4,718) (6,473) (11,191) - 2,483 35,775 38,258 27,283 (2Z5 29,302 27,067 27,283 2,750 (30,716) (27,966) 230,934 5,296 122,937 128,233 102,701 $ 8,046 $ 92,221 $ 100,267 $ 128,233 -126- (continued) CITY OF COLUMBIA HEIGHTS, MINNESOTA Internal Service Funds (continued) Combining Statement of Cash Flows Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Reconciliation of Operating (Loss) to Net Cash Provided (Used) by Operating Activities Operating loss Adjustments to reconcile operating loss to net cash provided (used) by operating activities Miscellaneous revenue Depreciation expense Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) in inventory (Increase) decrease in prepaid expense Increase (decrease) in accounts payable Increase in accrued salaries and withholdings payable Total adjustments Net cash provided (used) by operating activities Central Garage Insurance Exhibit K -3 Totals 1991 1990 $ (53,152) $ (79,499) $ (132,651) $ (51,723) 9,361 13,255 22,616 117,608 29,702 — 29,702 26,748 (3,258) 2,630 (628) (2,875) (351) — (351) (9,282) — 5,761 5,761 (13,267) (14,779) 4,334 (10,445) 12,334 4,667 — 4,667 72 25,342 25,980 51,322 131,338 $ 2( 7,810 $__(5_ 51 3,9) $(81,329) $__79,615 -127- CITY OF COLUMBIA MGI TI'S, MINNESOTA Central Garage Fund Balance Sheet As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Assets Current assets Cash and investments Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Inventory, at cost Total current assets Fixed assets Buildings Improvements other than buildings Machinery and equipment Less accumulated depreciation Net fixed assets Total assets Liabilities and Fund Equity Current liabilities Accounts payable Accrued salaries and withholdings payable Total current liabilities Fund equity Contributed capital Municipal funds Property owners Total contributed capital Retained earnings Reserved for capital improvement Unreserved Total retained earnings Total fund equity Total liabilities and fund equity Exhibit K-4 Capital Improve - Operating ment Totals Account Account 1991 1990 $ 6,398 $ 1,648 $ 8,046 $ 5,296 - 24,718 24,718 20,000 6,398 26,366 325764 25,296 3,258 - 3,258 - 127 155 282 - 80,520 - 80,520 80,169 90,303 26,521 116,824 105,465 307,888 - 307,888 306,529 98,629 - 98,629 97,226 97,412 - 97,412 95,169 503,929 _ - 503,929 498,924 153,781 - 153,781 124,079 350,148 - 350,148 374,845 $ 440,451 $ 26,521 $ 466,972 $ 480,310 $ 3,575 $ - $ 3,575 $ 18,354 22,029 - 22,029 17,362 25,604 - 25,604 35,716 124,196 - 124,196 124,196 64,653 - 64,653 64,653 188,849 - 188,849 188,849 - 26,521 26,521 20,000 225,998 - 225,998 235,745 225,998 26,521 252,519 255,745 414,847 26,521 441,368 444,594 $ 440,451 $ 26,521 $ 466,972 $ 480,310 -128- CITY OF COLUMBIA HEIGHTS, MINNESOTA Central Garage Fund Statement of Revenues, Expenses, and Changes Retained Earnings Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) Operating revenues Charges for services Services to departments Use of space Charges for sales Sales of gasoline Total operating revenues Operating expenses Cost of services and space Depreciation Total operating expenses Operating loss Nonoperating revenues Interest income. Miscellaneous revenue Total nonoperating revenues Income (loss) before operating transfers Operating transfers in Operating transfers (out) Total operating transfers Net income (loss) Retained earnings (deficit) Beginning of year, as previously stated Adjustment for improvements Beginning of year, as restated Residual equity transfers End of year Operating Account $ 90,068 112,939 Capital Improve- ment Exhibit K -5 Totals $ - $ 90,068 $ 94,818 112,939 110,205 60,231 55,406 - 263,238 260,429 286,688 - 286,688 242,602 29,702 - 29,702 26,748 316,390 - 316,390 269,350 (53,152) - (53,152) (8,921) 1,244 1,521 2,765 - 9,361 - 9,361 2,558 10,605 11521 12,126 2,558 (42,547) 1,521 (41,026) (6,363) 37,800 5,000 42,800 145,000 (5,000 - (5,000 (20,000) 32,800 5,000 37,800 125,000 (9,747) 6,521 (3,226) 118,637 235,745 20,000 255,745 (80,539) 36,440 $ 225,998 $ 26,521 $ 252,519 $ 255,745 -129- CITY OF COLUMBIA HEIGHTS, MrIINESOTA Central Garage Fund Statement of Cash Flows Years Faded December 31, 1991 and 1990 Cash flows from operating activities Cash received from customers Cash paid to suppliers for goods and services Cash payments to employees for services Miscellaneous revenue Net cash provided (used) by operating activities Cash flows from noncapital financing activities Residual equity transfer in Operating transfers in Operating transfers (out) Net cash provided by noncapital financing activities Cash flows from capital and related financing activities Acquisition of fixed assets Capital contributions Net cash used by capital and related financing activities Cash flows from investing activities Net change in investments Interest earned on investments Net cash provided (used) by investing activities Net increase in cash and cash equivalents Cash and cash equivalents (deficit) Beginning of year End of year -130- Exhibit K-6 1991 1990 $ 259,980 $ 260,429 (183,415) (140,091) (113,736) (107,352) 9,361 2,558 (27,810) 15,544 — 36,440 42,800 125,000 (5,000) — 37,800 161,440 (5,005) (131,600) QA 1 QF (5,005) (37,404) (4,71 8) — 2,483 1,767 (2,235) 1,767 2,750 141,347 5,296 136,051 $ 8,046 $ 5,296 (continued) Exhibit K-6 CITY OF COLUMBIA HEIGHTS, MINNESOTA Central Garage Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 1990 Reconciliation of Operating (Loss) to Net Cash Provided (Used) by Operating Activities Operating (loss) $ (53,152) $ (8,921) Adjustments to reconcile operating (loss) to net cash provided (used) by operating activities Miscellaneous revenue 9,361 2,558 Depreciation expense 29,702 26,748 Changes in assets and liabilities (Increase) in accounts receivable (3,258) — (Increase) in inventory, at cost (351) (9,282) Increase (decrease) in accounts payable (14,779) 4,369 Increase in accrued salaries and withholdings payable 4,667 72 Total adjustments 25,342 24,465 Net cash provided (used) by operating activities $ (27,810) $ 15,544 -131- CITY OF COLUMBIA HEIGHTS, MINNESOTA Insurance Fund Balance Sheet As of December 31, 1991 and 1990 Assets Current assets Cash and investments Cash and cash equivalents Temporary investments Total cash and investments Receivables Accounts Interest Prepaid expense Total assets liabilities and Fund Equity Current liabilities Accounts payable Fund equity Retained earnings Reserved for insurance Total liabilities and fund equity -132- Exhibit K -7 1991 1990 $ 92,221 $ 122,937 306,473 300,000 398,694 422,937 245 2,875 2,984 9,457 64,925 70,686 $ 466,848 $ 505,955 $ 13,657 $ 9,323 453,191 496,632 $ 466,848 $ 505,955 Exhibit K-8 CITY OF COLUMBIA HEIGHTS, MINNESOTA Insurance Fund Statement of Revenues, Expenses, and Changes in Retained Earnings Years Ended December 31, 1991 and 1990 1991 1990 Operating revenues Insurance allocation $ 74,469 $ — Recovery of damages 5,935 812 Total operating revenues 80,404 812 Operating expenses Claims administration 29,539 25,154 Claims 124,924 3,666 Insurance deductible 5,440 14,794 Total operating expenses 159,903 43,614 Operating loss (79,499) (42,802) Nonoperating revenues Interest income 29,302 28,026 Miscellaneous revenue 13,255 115,050 Total nnoperating revenues 42,557 143,076 Income (loss) before operating transfers (36,942) 100,274 Operating transfers (out) (6,499) — Net income (loss) (43,441) 100,274 Retained earnings Beginning of year 496,632 396,358 End of year $ 453,191 $ 496,632 -133- Exhibit K-9 CITY OF COLUMBIA HEIGHTS, MINNESOTA Insurance Fund Statement of Cash Flows Years Ended December 31, 1991 and 1990 (continued) -134- 1991 1990 Cash flows from operating activities Cash received from damages $ 83,034 — Cash paid to suppliers for goods and services (149,808) (50,979) Miscellaneous revenue 13,255 115,050 Net cash provided (used) by operating activities (53,519) 64,071 Cash flows from noncapital financing activities Operating transfers (out) (6,499) — Cash flows from investing activities Net change in investments (6,473) — Interest received on investments 35,775 25,516 Net cash provided by investing activities 29,302 25,516 Net increase (decrease) in cash and cash equivalents (30,716) 89,587 Cash and cash equivalents Beginning of year 122,937 33,350 End of year $ 92,221 $ 122,937 (continued) -134- CITY OF COLUMBIA HEIGHTS, MINNESOTA Insurance Fund (continued) Statement of Cash Flows Years Ended December 31, 1991 and 1990 Reconciliation of Operating (Loss) to Net Cash Provided (Used) by Operating Activities Operating (loss) Adjustments to reconcile operating (loss) to net cash provided (used) by operating activities Miscellaneous revenue Changes in assets and liabilities (Increase) decrease in accounts receivable (Increase) decrease in prepaid expense Increase in accounts payable Total adjustments Net cash provided (used) by operating activities -135- 1991 Exhibit K-9 1990 $ (79,499) $ (42,802) 13,255 115,050 2,630 (2,875) 5,761 (13,267) 4,334 7,965 25,980 106,873 $ 5( 3,519) $ 64,071 AGENCY FUNDS Agency Funds are used to account for assets held by a government in a trustee or agent capacity for individuals, private organizations, other governments, or other funds. Deferred Compensation Fund - used to account for assets held by deferred compensation trustee. Permit Surcharge Fund - used to account for SAC and SUR charges collected for and remitted to the State of Minnesota. Escrow Agency Fund - used to account for payroll - related assets and liabilities. -136- CITY OF COLUMBIA FIGHTS, mD NESOTA Fiduciary Funds Combining Statement of Changes in Assets and Iabilities -All Agency Funds Year Ended December 31, 1991 Total All Agency Funds Assets Cash and cash equivalents General account Payroll account Total cash and cash equivalents Accounts receivable Assets held by deferred compensation trustees Total assets Liabilities Liabilities Accounts payable Deferred compensation payable to employees Deposits Other liabilities Total liabilities Deferred Compensation Agency Fund Assets Assets held by deferred compensation trustee liabilities Deferred compensation payable to employees Balance January 1 Additions Deletions $ 17,362 $ 5,107,703 $ 5,115,092 571 2,607,402 2,607,066 17,933 7,715,105 7,722, 158 1,508 6,719 8,005 719,952 329,981 108,999 $ 739,393 $ 8,051,805 $ 7,839,162 $ 113 $ - $ 113 719,952 329,981 108,999 6,332 300 - 12,996 31,860 40,386 $ 739,393 $ 362,141 $ 149,498 Exhibit L -1 Balance $ 9,973 907 10,880 222 940,934 $ 952,036 940,934 6,632 4,470 $ 952,036 $ 719,952 $ 329,981 $ 108,999 $ 940,934 $ 719,952 $ 329,981 $ 108,999 $ 940,934 -137- (continued) Exhibit L -1 CITY OF COLUMBIA HEIGHTS, N NNESOTA Fiduciary Funds (continued) Combining Statement of Changes in Assets and Liabilities —All Agency Funds Year Ended December 31, 1991 IM. Balance Balance January 1 Additions Deletions December 31 Permit Surcharge Agency Fund Assets Cash and cash equivalents General account $ 1,328 $ 26,537 $754 $ 111 Liabilities SAC /SUR charges payable $ 1,328 $ 26,537 $ 27,754 $ 111 Escrow Agency Fund Assets Cash and cash equivalents General account $ 16,034 $ 5,081,166 $ 5,087,338 $ 9,862 Payroll account 571 2,607,402 2,607,066 907 Accounts receivable 1,508 6,719 8,005 222 Total assets $ 18,113 $ 7,695,287 $ 7,702,409 $ 10,991 liabilities Accounts payable $ 113 $ — $ 113 $ — Deposits 6,332 300 — 6,632 Other liabilities Withholdings payable — 25 — 25 Payroll deductions payable 10,666 — 8,045 2,621 Employee activity 1,002 5,298 4,587 1,713 Total liabilities $ 18,113 $ 5,623 $ 12,745 $ 10,991 IM. tHOUSING AND REDEVELOPMENT AUTHORITY COMPONENT UNIT CITY OF COLUMBIA HEIGHTS, MINNESOTA Housing and Redevelopment Authority Funds Combining Balance Sheet All Governmental Fund Types and Account Groups As of December 31, 1991 (with Comparative Totals as of December 31, 1990) Assets and Other Debits Cash and investments Cash and cash equivalents Receivables Accounts Taxes Interest Loans Due from other governmental units Due from other funds Due from primary government Prepaid expense Assets held by deferred compensation trustee Fixed assets Other assets Real estate held for resale Other debits Amount to be provided for longterm debt Amount to be provided for compensated absences Total assets and other debits Liabilities, Equity, and Other Credits Liabilities Accounts payable Notes payable Accrued salaries and withholdings payable Deferred compensation payable Due to other governmental units Due to other funds Due to primary government Deferred revenue Accrued interest payable Deposits Insurance and taxes in escrow Compensated absences payable Total liabilities Equity and other credits Investment in general fixed assets Fund balance Reserved for community development Reserved for Parkview Villa South maintenance Unreserved Undesignated Total equity and other credits Total liabilities, equity, and other credits -139- Governmental Fund Types HRA Special Revenue Anoka County Community HRA Downtown Low Income Development General Development Housing Block Grant $ 611,106 $ - $ 116,546 S - 278 - - - 3,527 - - 280 - 189 - 399,404 - - - 10,455 - 159,107 31,389 1,524 - - 30,649 6,303 - - - 2,946 - 2,861 - 98,413 - - $ 1,134,236 $ - $ 278,703 $ 62,038 $ 29,433 S - $ 159,638 $ 23,720 6,201 - 1,024 - 10,438 - 21,011 2,620 30,649 - 1,524 - 11,236 - 4,738 - 409,634 - 345 - 4,480 - 4,625 - 7,121 - - - 509,192 - 192,905 26,340 160,187 - - - 118,770 - - - 346,087 - 85,798 35,698 625,044 - 85,798 35,698 $ 1,134,236 $ - S 278,703 $ 62,038 Fiduciary Fund Type Account Groups General General Long -Term Agency Fixed Assets Debt Exhibit M--1 Totals 1991 1990 $ 727,652 $ 514,488 - - - 278 2,716 - - - 3,527 - - - - 469 583 - - - 399,404 423,806 - - - 200,951 58,814 - - - 32,173 339,958 - - - 6,303 - - - - 5,807 4,928 154,615 - - 154,615 126,162 - 5,032,349 - 5,032,349 2,974,024 98,413 98,413 - - - - 125,905 - 9,874 9,874 8,839 $ 154,615 L 5,032,349 $ 9,874 $ 6,671,815 $ 4,678,636 $ - $ - $ - $ 212,791 $ 245,544 - - - - 125,905 - - - 7,225 8,116 154,615 - - 154,615 126,162 - - - 34,069 21,888 - - - 32,173 113,670 - - - 15,974 - - - - 409,979 426,522 - - - - 57,712 - - - 9,105 4,618 - - - 7,121 8,673 - - 9,874 9,874 8,839 154,61.5 - 9,874 892,926 1,147,649 - 5,032,349 - 5,032,349 2,974,024 - - - 160,187 152,823 - - - 118,770 - S 154,615 $ 5,032,349 $ 9,874 $ 6,671,815 S 4,678,636 -140- CITY OF COLUMBIA MGHTS, MINNESOTA Housing and Redevelopment Authority Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance All Governmental Fund Types Year Ended December 31, 1991 (with Comparative Totals for Year Ended December 31, 1990) HRA Special Revenue -141- HRA Downtown Low Income General Development Housing Revenues Taxes $ 57,707 $ — $ — intergovernmental 54,797 — 391,500 Interest 49,883 — 6,918 Other revenues Rents 57,542 — 214,066 Miscellaneous 20,494 — 3,016 Reimbursements /contributions 1,782,270 — — Total revenues 2,022,693 — 615,500 Expenditures Administration Personal services 233,647 — 31,696 Other services and charges Utilities and maintenance operations — — 146,412 Other expenditures Relocation assistance — — — Legal — — — Interest expense — — — Loans and grants — — — Miscellaneous — — — Residual receipts payments — — 5,582 Capital outlay Property acquisitions /capital improvements 1,664,086 — 420,585 Debt service — — 125,905 Total expenditures 1,897,733 — 730,180 Excess (deficiency) of revenues over expenditures 124,960 — (114,680) Other financing sources Operating transfers in — — — HUD forgiveness of loan principal and interest — — 183,617 Total other financing sources — — 183,617 Excess (deficiency) of revenues and other financing sources over expenditures 124,960 — 68,937 Fund balance Beginning of year 290,729 209,355 16,861 Residual equity transfers 209,355 20( 9,355) — End of year $ 625,044 $ — $ 85,798 -141- Exhibit N -2 $ 35,698 $ 746,540 $ 556,963 -142- Totals Anoka County Community Development Block Grant 1991 1990 $ - $ 57,707 $ 64,348 85,440 531,737 215,555 517 57,318 60,032 - 271,608 213,160 - 23,510 39,649 - 1,782,270 17,110 85,957 2,724,150 609,854 1,029 266,372 235,333 - 146,412 151,012 - - 41 - - 9,752 - - 10,503 24,509 24,509 158,585 64,739 64,739 30,220 - 5,582 - - 2,084,671 374,705 - 125,905 - 90,277 2,718,190 970,151 (4,320) 5,960 (360,297) - - 346,665 - 183,617 - - 183,617 346,665 (4,320) 189,577 (13,632) 40,018 556,963 570,59.5 $ 35,698 $ 746,540 $ 556,963 -142- GENERAL FIXED ASSETS GROUP OF ACCOUNTS ' General fixed assets are those assets and capital additions of the City which are not accounted for in Proprietary Funds. -143- ACCOUNT GROUP FINANCIAL SCHEDULES CITY OF COLUMBIA HEIGHTS, MINNESOTA Comparative Schedule of General Fixed Assets by Source Year Ended December 31, 1991 General Fixed Assets Land Buildings Improvements other than buildings Machinery and equipment Construction in process Total general fixed assets Investment in General Fixed Assets by Source General Obligation Bonds Library Bonds of 1966 Municipal Building Bonds of 1959 Park Bonds of 1962 City Garage Bonds of 1972 Capital Improvement Bonds of 1976 Total General Obligation Bonds Grants Federal E.D.A. and H.U.D. State Total grants Revenue sharing Federal Anoka County Total revenue sharing Balance from current revenue and contributions Total investments in general fixed assets Balance January 1 Additions Deletions $ 3,131,134 3,002,543 1,214,661 3,735,420 963,939 $ 12,047,697 $ 975 $ 10 10,674 - 150,031 - 263,506 117,481 482,993 482,818 $ 908,179 $ 600,309 $ 90,000 $ - 150,000 - 325,000 - 510,000 - 929,475 - 2,004,475 - 526,290 - 267,203 - 793,493 - Exhibit l-1 Balance December 31 $ 3,132,099 3,013,217 1,364,692 3,881,445 964,114 $ 12,355,567 $ 90,000 150,000 325,000 510,000 929,475 2,004,475 526,290 267,203 793,493 1,752,317 - - 1,752,317 51,550 - - 51,550 1,803,867 - - 1,803,867 7,445,862 908,179 600,309 7,753,732 $ 12,047,697 $ 908,179 $ 600,309 $ 12,355,567 -144- CITY OF COLUMBIA FIGHTS, MINNESOTA Schedule of General Fixed Assets —By Function and Activity December 31, 1991 Function and Activity General goverment Council Manager Finance and elections Assessing Planning General government buildings Total general government Public safety Police /animal /civil defense Fire Inspections Total public safety Public works highways and streets Engineering Maintenance Total public works highways and streets Sanitation Parks and recreation Library Cable television Construction in process Total general fixed assets -145- $ 3,1322099 $ 3,013,217 $ 1,3642692 Improvements Other Than Land Buildings Buildings 110,920 904,408 19,396 110,920 904,408 19,396 — — 758 — — 2,199 — — 2,957 — 2,820 2,801 — 18,750 532,683 — 21,570 535,484 3,000,179 1,899,222 806,855 21,000 188,017 — $ 3,1322099 $ 3,013,217 $ 1,3642692 Exhibit 1L-2 Machinery and Construction Equipment in Process Total $ 23,142 $ — $ 23,142 22,564 — 22,564 160,819 — 160,819 15,500 — 15,500 679 — 679 59,103 — 1,093,827 281,807 — 1,316,531 306,253 — 307,011 384,086 — 386,285 20,380 — 20,380 710,719 — 713,676 192,730 — 198,351 1,049,938 — 1,601,371 1,242,668 — 1,799,722 652 — 652 1,498,010 — 7,204,266 129,085 — 338,102 18,504 — 18,504 — 964,114 964,114 $ 3,881,445 $ 964,114 $ 12,355,567 -146- CITY OF COLUMBIA FIGHTS, MINNESOTA Schedule of Changes in General Fixed Assets —By Function and Activity Year Faded December 31, 1991 -147- General Fixed Assets Function and Activity January 1, 1991 Additions General government Council $ 23,142 $ — Manager 19,798 2,800 Finance and elections 127,677 39,487 Assessing 15,500 — Planning 679 — General government buildings 1,114,508 15,011 Total general government 1,301,304 57,298 Public safety Police/animal /civil defense 313,178 10,530 Fire 377,644 8,641 Inspections 20,380 — Total public safety 711,202 19,171 Public works highways and streets Engineering 194,122 15,114 Maintenance 1,429,225 182,990 Total public works highways and streets 1,623,347 198,104 Sanitation 652 — Parks and recreation 7,125,036 113,374 library 317,765 23,187 Cable television 4,452 14,052 Construction in process 963,939 482,993 Total general fixed assets $ 12,047,697 $ 908,179 -147- Exhibit N-3 16,697 307,011 — 386,285 20,380 16,697 713,676 10,885 198,351 10,844 1,601,371 21,729 1,799,722 — 652 34,144 7,204,266 2,850 338,102 — 18,504 482,818 964,114 $ 600,309 $ 12,355,567 -148- General Fixed Assets Deletions December 31, 1991 $ — $ 23,142 34 22,564 6,345 160,819 — 15,500 — 679 35,692 1,093,827 42,071 1,316,531 16,697 307,011 — 386,285 20,380 16,697 713,676 10,885 198,351 10,844 1,601,371 21,729 1,799,722 — 652 34,144 7,204,266 2,850 338,102 — 18,504 482,818 964,114 $ 600,309 $ 12,355,567 -148- GENERAL LONG -TERM DEBT GROUP OF ACCOUNTS ' This self - balancing account group is used to account for all long -term debt which is backed by the full faith and credit of the City and other long -term debt which is secured by General Fund revenue. -149- CITY OF COLUMBIA HEIGHTS, MINNESOTA Statement of General Long -Term Debt As of December 31, 1991 Amount Available and to be Provided for the Payment of General Long:-Term Debt Amount available in Debt Service Funds Amount to be provided for retirement of Long -term debt Note payable to BRA Lability for compensated absences General Long-Term Debt Payable General Obligation Bonds payable Accreted interest on Capital Appreciation Bonds Note payable to ERA Liability for compensated absences payable -150- Exhibit 0-1 $ 9,603,694 10,811,471 16,609 329,244 $ 20,761,018 $ 20,239,721 175,444 16,609 329,244 $ 20,761,018 Exhibit 0-2 CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Debt Service Requirements to Maturity As of December 31, 1991 -151- General Obligation Bonds Year Principal Interest 1992 $ 1,180,000 $ 1,017,433 1993 1,245,000 1,024,072 1994 7,860,000 704,594 1995 1,335,000 423,141 1996 1,150,000 316,072 1997 1,155,000 250,077 1998 990,000 190,390 1999 945,000 138,168 2000 900,000 86,980 2001 860,000 37,270 2002 611,515 499,865 2003 377,918 542,082 2004 350,584 569,416 2005 327,272 592,728 2006 300,822 619,178 2007 280,545 639,455 2008 259,375 660,625 2009 111,690 313,310 $ 20,239,721 $ 8,624,856 -151- CITY OF COLUMBIA FIGHTS, MINNESOTA Combining Schedule of Bonds Payable December 31, 1991 Special Assessment Bonds General Obligation Refunding Improvement Bonds of 1987 Series A All bonds maturing on or after March 1, 1992 shall be subject to redemption and prior payment in whole or in part in inverse order of maturity at the option of the issue on March 1, 1991 and interest payment date thereafter at a price of the principal amount thereof plus accrued interest. Total Special Assessment Bonds Tax Increment Bonds G.O. Tax Increment Bonds Series 1984 Bonds maturing on or after March 1, 1992 will be subject to redemption andprepaymentat the option of the City in inverse order on March 1, 1991 and any interest payment date thereafter at 100% of their principal plus accrued interest. G.O. Tax Increment Bonds of 1985 Series A Bonds maturing on or after March 1, 1992 will be subject to redemption and prepayment at the option of the issuer in inverse order of serial numbers on March 1, 1991 and any interest payment date thereafter at a price equal to par plus accrued interest to the date of redemption. -152- Interest Rates Issue Maturity and Dates Date Date 3/01-9/01 5.75% 6.00% 6.40% 6.60% 3/01 -9/01 9.00% 9.20% 9.40% 3/01 -9/01 6/01/87 3/01/95 6/01/84 3/01/94 9/01/85 3/01/02 Remaining Annual Original Serial Balance Issue Payments 1/01/91 Sold $ 2,230,000 $ 275,000 (92) 280,000 (93) 300,000 (94) 330,000 (95) $ 1,070,000 $ — 135,000 (92) 145,000 (93) 160,000 (94) 2,100,000 — $ 1,460,000 $ Exhibit 0=3 Interest Rnlnnrp. Pahl in — $ 275,000 $ 1,185,000 $ 82,746 $ 1,460,000 $ — $ 275,000 $ 1,185,000 $ 82,746 $ 565,000 $ 1,850,000 -153- — $ 125,000 $ 440,000 $ 45,999 — 1,850,000 — 80,480 (continued) CITY OF COLUMBIA HEIGHTS, MINNESOTA Combining Schedule of Bonds Payable (continued) December 31, 1991 (A) For the G.O. TI Refunding Bonds of 1987 Series A, the remaining serial payments for the years 1996 -2002, a total of $6,550,000, is in an escrow account as a result of the 1991 refunding issue. This escrow account will be used to pay all bonds maturing on or after March 1, 1995. -154- Interest Rates Issue Maturity and Dates Date Date Tax Increment Bonds (continued) G.O. TI Refunding Bonds of 1987 Series A (A) 6/01/87 3/01/02 Bonds maturing on or after March 1, 1995 will be 3/01 -9/01 subject to redemption and prepayment in whole or 6.00% in part in inverse order of maturity at the option 6.20% of the issuer on March 1, 1994 and any interest 6.40% payment date thereafter at a price of the 6.60% principal amount thereof plus accrued interest. 6.80% 7.00% 7.10% 7.20% 7.30% 7.40% 7.50% G.O Taxable TI Bonds of 1987 8/01/87 2/01/97 All bonds maturing on or after February 1, 1994 2/01 -8/01 shall be subject to redemption and prior payment 8.60% in whole or in part in inverse order of maturity 8.75% at the option of the issuer on February 1, 1993 8.90% and any interest payment date thereafter at a 9.00% price of par plus accrued interest. 9.10% 9.10% (A) For the G.O. TI Refunding Bonds of 1987 Series A, the remaining serial payments for the years 1996 -2002, a total of $6,550,000, is in an escrow account as a result of the 1991 refunding issue. This escrow account will be used to pay all bonds maturing on or after March 1, 1995. -154- Original Issue 9,090,000 1,100,000 Remaining Annual Serial Payments 640,000 (92) 680,000 (93) 695,000 (94) 820,000 (95) 910,000 (96) 910,000 (97) 960,000 (98) 930,000 (99) 900,000 (00) 875,000 (01) 245,000 (02) 130,000 (92) 140,000 (93) 155,000 (94) 170,000 (95) 185,000 (96) 200,000 (97) TU. -incP 9,090,000 1,100,000 Balance Sold Retired 12/31/91 525,000 8,565,000 -155- 120,000 980,000 Exhibit 03 Interest Paid in 603,779 92,600 (continued) CITY OF COLUMBIA 1MGITI'S, MINNESOTA Combining Schedule of Bonds Payable (continued) December 31, 1991 Interest Rates and Dates Tax Increment Bonds (continued) G.O. TI Capital Appreciation Bonds of 1990 9/01 6.90% 6.95% 7.00% 7.00% 7.10% 7.10% 7.15% 7.15% G.O. TI Refunding Bonds of 1991 All bonds maturing on or after March 1, 2000 3/01 -9/01 shall be subject to redemption and prior payment 4.75% in whole or in part at the option of the issuer on 5.00% March 1, 1999 and on any day thereafter at a 5.10% price of par and accrued interest. 5.30% 5.50% 5.60% 5.70% 5.80% Total General Obligation Tax Increment Bonds Total Bond Principal Payable — All Funds -156- Issue Maturity Date Date 8/23/90 9/01/09 12/01/91 3/01/02 Remaining Annual Original Serial Balance Issue Payments 1/01/91 2,399,721 391,515 (02) 377,918 (03) 350,589 (04) 327,242 (05) 300,821 (06) 280,545 (07) 259,376 (08) 111,690 (09) 6,670,000 — 835,000 (95) 965,000 (96) 955,000 (97) 990,000 (98) 945,000 (99) 900,000 (00) 860,000 (01) 220,000 (02) 2,399,721 — 6,670,000 Exhibit 03 Interest Rntnnop Pnicl in 2,399,721 — — 6,670,000 — $ 15,004,721 $ 6,670,000 $ 2,620,000 $ 19,054,721 $ 822,858 $ 16,464,721 $ 6,670,000 $ 2,895,000 $ 20,239,721 $ 905,604 -157- CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Sources and Uses of Public Funds For Housing and Redevelopment Authority Tax Increment Financing Districts Year Ended December 31, 1991 Sources of funds Bond proceeds Tax increments received Interest on invested funds Real estate sales EDA grant Revenue sharing Land sale Other Total sources of funds Uses of funds Land acquisition Site improvements or preparation costs Installation of public utilities and improvements Other public improvements Bond payments Principal Interest Administrative costs Other Total uses of funds Funds remaining (deficit) Exhibit P-1 Accounted Current Original Amended for in Year Amount Budget Budget Prior Years Amount Remaining $ 8,175,000 $ 21,964,721 $ 15,258,724 $ 6,670,000 $ 35,997 — — 7,591,123 1,248,680 (8,839,803) — — 1,935,518 176,121 (2,111,639) 702,630 753,630 1,303,929 — (550,299) 1,415,000 1,415,000 1,482,000 — (67,000) — 60,000 — — 60,000 — 7,000 55,000 — (48,000) — 340,000 629,185 1,782,270 (2,071,455) 10,292,630 24,540,351 28,255,479 9,877,071 (13,592,199) 4,800,000 7,034,000 7,357,742 — (323,742) 100,000 475,000 164,891 — 310,109 325,000 478,800 447,296 — 31,504 2,500,000 4,250,000 3,486,364 — 763,636 8,175,000 15,294,721 9,469,289 2,620,000 3,205,432 10,031,325 19,248,682 9,275,805 972,556 9,000,321 566,000 1,008,500 1,291,811 12,015 (295,326) 1,299,000 3,789,399 1,353,179 1,842,856_(l) 593,364 27,796,325 51,579,102 32,846,377 5,447,427 13,285,298 $ (17,503,695) $ (27,038,751) $ (4,590,898) $ 4,429,644 $ (26,877,497) (1) Parkview Villa South construction ($1,664,086) and provision for reserve ($118,770) and payment to North Coast Partners for "pay as you go" payment for 1991 ($60,000). -158- CITY OF COLUMBIA HEIGHTS, MINNESOTA Note — Sources of Funds For Housing and Redevelopment Authority Tax Increment Financing Districts December 31, 1991 Note (1) Sources of Funds Real Estate Land Sales Property Columbia Heights Office Plaza Evenson Properties IaBelle Park Condo No. 1 The Gaughan Companies Columbia Heights Mall Evenson Properties LaBelle Park Condo No. 2 The Gaughan Companies LaBelle Park Condo No. 3 The Gaughan Companies University Heights Housing Columbia Park Medical Clinic Columbia Park Properties Sullivan Lake Housing Columbia Square Northeast Partners Parkview Villa South Housing -159- Land Sale $ 133,500 137,464 138,167 168,498 126,000 1 20,000 420,000 149,459 $ 1,293,089 Exhibit P-2 Date Total Cost * 10/81 10/81 2/82 3/82 9/82 9/84 11/85 11/87 8/88 8/90 $ 6,116,914 (continued) Exhibit 1 -2 CITY OF COLUMBIA HEIGHTS, MP NE.SOTA Note — Sources of Funds (continued) For Housing and Redevelopment Authority Tax Increment Financing Districts December 31, 1991 Note (2) Sources of Funds Tax Exempt Obligation Issued on Behalf of Private Entities Development Columbia Heights Office Plaza Evenson Properties Columbia Heights Mall Evenson Properties 4111 Building South Ruvelson and Associates LaBelle Park Condominiums The Gaughan Companies Columbia Park Medical Clinic Columbia Park Properties Amount Issue Type $ 6,000,000 Commercial Redevelopment Revenue Bonds Series 1981 4,000,000 Commercial Redevelopment Revenue Bonds Series 1981 775,000 Commercial Redevelopment Revenue Bonds Series 1981 9,000,000 Commercial Redevelopment Revenue Bonds Series 1980 5,000,000 Commercial Redevelopment Revenue Bonds Series 1985 Note (3) Sources of Funds * Individual project costs were not available to he used in Note (1) Sources of Funds. A total of all projects has been provided. -160- Fiscal Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 CITY OF COLUMBIA HEIGHTS, MINNESOTA Assessed Value, Tax Capacity, and Estimated Actual Value of All Taxable Property (A) Years 1982 Through 1991 Real Property Assessed/ Estimated Tax Capacity Actual $ 96,391,052 104,783,933 105,913,390 108,671,288 113,721,411 114,767,361 116,314,660 14,532,465 10,022,891 9,901,542 $ 399,395,650 430,688,578 445,177,400 461,786,700 476,771,500 484,669,200 507,684,800 522,002,900 533,586,700 536,614,500 Personal Property Assessed/ Estimated Tax Capacity Actual $ 1,344,094 $ 3,125,800 1,333,301 3,100,700 1,426,869 3,318,300 1,426,869 3,414,600 1,500,988 3,511,600 1,547,299 3,619,300 1,679,868 3,927,600 208,985 4,017,800 212,505 4,234,500 210,051 4,258,500 Area Wide Allocation (B) Contribution Distribution $ (3,908,286) $ 8,183,307 (4,487,006) 10,544,639 (5,178,793) 12,001,080 (4,695,234) 13,636,552 (4,407,361) 14,264,696 (5,778,163) 15,650,911 (5,180,460) 17,871,259 (725,395) 2,478,750 (712,924) 2,841,497 (510,571) 3,290,306 (A) For tax collection years 1988 and prior, taxable valuation was calculated based on a specific formula applied to estimated actual value, which resulted in an assessed valuation, which was then used as a base upon which to spread the annual tax levies. Beginning in 1989, the State of Minnesota legislated a change in this formula. This change is intended to reflect the burden or "tax capacity" that property is able to bear. The new formula results in a considerably smaller taxable valuation for the City. In this table, for the purpose of comparison only, 1988 and prior years are reported under the old system of assessed valuation, while 1989 and subsequent years are reported in terms of tax capacity. (B) The Metropolitan Fiscal Disparities Act was first implemented for taxes payable in 1975 for the seven Metropolitan counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Forty percent of the increase in commercial -- industrial (including public utility) valuation in each assessment district since 1971 is contributed to an area -wide tax base. Using the factors of population and real property market value, a per capita distribution index is calculated. This index is employed in determining what proportion of the valuation shall be distributed back to each assessment district. -161- Total Assessed/ Estimated Tax Capacity Actual $ 102,010,167 $ 402,521,450 112,174,867 433,789,278 114,162,546 448,495,700 119,039,475 465,201,300 125,079,734 480,283,100 126,187,408 488,288,500 130,685,327 511,612,400 16,494,805 526,020,700 12,363,969 537,821,200 12,891,328 540,873,000 Table I Ratio of Total Assessed/ Tax Capacity Value to Total Estimated 25.34% 25.86 25.45 25..59 26.04 25.84 25.54 3.14 2.30 2.38 -162- CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Rates Years 1982 Through 1991 Fiscal Table II Year A City School County Metro Other B Total 1982 17.303 48.266 24.085 3.556 0.747 93.957 1983 15.438 50.156 24.492 3.877 0.576 94.539 1984 16.610 56.227 26.088 4.197 0.944 104.066 1985 16.300 50.487 23.868 4.250 1.048 95.953 1986 16.420 53.797 25.537 3.574 1.330 100.658 1987 19.472 63.234 29.414 4.223 1.136 117.479 1988 20.083 60.733 30.766 4.314 0.992 116.888 1989 0.15769 0.51364 0.27425 0.03360 0.00786 0.98704 1990 0.20266 0.41329 0.28846 0.03470 0.00988 0.94899 1991 0.19040 0.53249 0.31400 0.03395 0.01307 1.08391 (A) For tax collection years 1988 and prior, taxable valuation was calculated based on a specific formula applied to estimated actual value, which resulted in an assessed valuation, which was then used as a base upon which to spread the annual tax levies. Beginning in 1989, the State of Minnesota legislated a change in this formula. This change is intended to reflect the burden or "tax capacity" that property is able to bear. The new formula results in a considerably smaller taxable valuation for the City. In this table, for the purpose of comparison only, 1988 and prior years are reported under the old system of assessed valuation, while 1989 and subsequent years are reported in terms of tax capacity. (B) Rice Creek Watershed, Mosquito Control, and Housing and Redevelopment Authority. -163- 1 Table III CITY OF COLUMBIA HEIGHTS, MQNNESOTA City Tax Levy Years 1982 Through 1991 -164- Bonds Fiscal City Levy General Police Fire and Year Total Fund Relief Relief Interest 1982 $ 1,759,284 $ 1,356,029 $ 125,305 $ 57,950 $ 220,000 1983 1,740,623 1,453,033 92,155 55,435 140,000 1984 1,757,486 1,617,500 77,313 62,673 — 1985 1,825,192 1,662,532 79,700 82,960 — 1986 1,888,616 1,725,956 79,700 82,960 — 1987 2,181,115 2,008,455 89,700 82,960 — 1988 2,391,689 2,258,872 65,242 67,575 — 1989 2,391,689 2,298,989 54,266 38,434 — 1990 2,882,056 2,760,455 64,549 57,052 — 1991 3,144,069 2,963,869 98,606 81,594 — -164- CITY OF COLUMBIA HEIGHTS, MINNESOTA Tax Levies and Tax Collections Years 1982 Through 1991 * General Fund tax levy has been adjusted by the Homestead and Agricultural Credit Aid (property tax replacement) which is a revenue from other agencies and has been incorporated into Table VI. -165- Collections Percentage Collections of Current of Levy of Prior Year's Taxes Collected Year's Taxes Year Total Tax During Fiscal During Fiscal During Fiscal Total Collected Levy * Period Period Period Collections 1982 $ 1,262,780 $ 1,236,497 97.9% $ 19,120 $ 1,255,617 1983 1,249,602 1,208,840 96.7 26,702 1,235,542 1984 1,285,324 1,253,908 97.6 20,640 1,274,548 1985 1,286,626 1,256,387 97.6 25,184 1,281,571 1986 1,395,303 1,365,014 97.8 15,494 1,380,508 1987 1,624,073 1,605,851 98.9 41,633 1,647,484 1988 1,800,335 1,762,573 97.9 18,395 1,780,968 1989 1,811,862 1,785,190 98.5 13,601 1,798,791 1990 2,079,001 2,057,446 99.0 3,249 2,060,695 1991 2,226,208 2,183,800 98.1 31,274 2,215,074 * General Fund tax levy has been adjusted by the Homestead and Agricultural Credit Aid (property tax replacement) which is a revenue from other agencies and has been incorporated into Table VI. -165- Ratio of Total Collections to Tax Levy Accumulated Delinquent Taxes 0.9943:1 $ 12,888 0.9887:1 49,644 0.9916:1 36,290 0.9961:1 51,764 0.9894:1 53,140 1.014:1 55,101 0.9892:1 53,374 0.9928:1 79,005 0.9912:1 81,891 0.9950:1 88,809 Table IV Ratio of Accumulated Delinquent Taxes to Current Year Tax Levy 0.0102:1 0.0400:1 0.02823:1 0.04023:1 0.03808:1 0.03393:1 0.02965:1 0.04360:1 0.03939:1 0.03989:1 -166- CITY OF COLUMBIA HEIGHTS, NIINNFESOTA Special Assessment Collections Years 1982 Through 1991 * The parking ramp at 4025 Van Buren Street N.E. was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. -167- Percentage Current of Current Special Special Delinquent Assessments Current Assessments Special Becoming Special Collected Assessments Fiscal Due During Assessments During Fiscal Collected During Year Fiscal Period Collected Period Fiscal Period (A) 1982 $ 217,810 $ 107,815 49.5% $ 94,298 1983 289,011 153,792 53.2 130,298 1984 299,680 186,803 62.3 119,372 1985 236,686 126,780 53.6 140,515 1986 179,812 99,460 55.3 118,938 1987 201,700 121,911 60.4 86,741 1988 * 197,641 110,447 55.9 50,534 1989 * 218,860 142,076 64.9 95,361 1990 * 250,682 180,388 72.0 74,581 1991 * 252,190 134,588 53.4 39,016 * The parking ramp at 4025 Van Buren Street N.E. was assessed; however, it was not included in this figure. (A) The City bills the property owner directly when a special assessment installment becomes due. If the installment becomes delinquent, it is certified to the County for inclusion on the following year's property tax statement and is shown as a delinquent collection. -167- Table V Total Special Assessments Deferred Special Assessments Delinquent Collected Balance at End of During at End of Fiscal Period Fiscal Period Fiscal Period $ 94,702 $ 301,367 $ 1,553,493 152,744 313,682 1,048,215 154,154 236,474 857,906 132,031 92,257 640,691 110,886 223,656 697,945 108,729 - 236,510 616,994 149,795 143,565 1,149,826 97,030 219,588 637,341 109,928 309,544 591,415 77,005 210,029 565,432 -168- CITY OF COLUMBIA HEIGHTS, MINNESOTA General Governmental Revenues By Source (A) Last Ten Years Fiscal Special Licenses Charges for Year Taxes Assessments (C) and Permits Intergovernmental Services (B) 1982 $ 1,257,941 $ — $ 148,773 $ 2,280,564 $ 551,506 1983 1,301,329 — 156,410 2,990,623 664,689 1984 1,807,252 — 215,942 2,470,131 706,135 1985 2,352,593 — 139,470 2,625,357 289,116 1986 2,275,432 — 187,809 2,978,923 351,897 1987 2,733,934 — 131,351 2,972,407 408,062 1988 2,924,601 — 163,384 3,738,312 516,018 1989 2,839,936 736,662 142,365 4,014,920 611,516 1990 3,215,975 463,410 147,587 4,096,113 661,116 1991 3,474,483 277,171 164,945 3,249,669 424,546 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) The years 1983 -1984 include Refuse Collection and Disposal. (C) Beginning in 1987, the Special Assessment Fund Type was eliminated and special assessment collections were recorded in the Debt Service Fund Type. (D) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning in 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. -169- Table VI Fines and Forfeitures Interest Miscellaneous (D) Total $ 47,073 $ 227,390 $ 214,278 $ 4,727,525 51,870 185,501 272,650 5,623,072 51,009 222,454 93,363 5,566,286 104,741 265,318 81,461 5,858,056 108,158 369,277 80,057 6,351,553 123,813 533,564 560,378 7,463,509 112,254 596,581 1,179,042 9,230,192 128,188 1,229,806 453,820 10,157,213 123,505 1,039,625 385,013 10,132,344 116,386 395,986 238,615 8,341,801 -170- CITY OF COLUMBIA HEIGHTS, MINNESOTA General Governmental Expenditures by Function (A) Last Ten Years Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) The years 1982-1984 include Refuse Collection and Disposal. (C) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning in 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. -171- Highways Parks Fiscal General Public and and Year Government Safety Streets Sanitation (B) Recreation 1982 $ 532,444 $ 1,454,404 $ 538,106 $ 446,685 $ 634,395 1983 546,692 1,537,897 515,240 476,518 625,030 1984 563,717 1,654,871 564,101 531,174 753,430 1985 850,356 1,799,231 627,733 81,415 788,111 1986 885,343 1,885,654 560,003 75,854 865,369 1987 919,991 1,915,895 632,746 80,285 1,001,069 1988 1,034,970 2,218,196 563,432 90,760 1,206,281 1989 1,114,211 2,303,702 785,818 122,304 1,400,850 1990 1,429,627 2,551,543 762,642 184,627 1,514,853 1991 1,285,382 2,538,215 891,133 108,108 954,236 Notes: (A) Includes General, Special Revenue, and Debt Service Fund Types. (B) The years 1982-1984 include Refuse Collection and Disposal. (C) From 1988 to 1990, the Housing and Redevelopment Authority is blended as a component unit of the City. Beginning in 1991, the Housing and Redevelopment Authority is discretely presented as a separate column. -171- library Debt Service $ 188,343 $ 1,042,879 265,803 973,412 212,379 1,307,737 221,821 786,312 263,650 1,205,856 261,583 1,807,407 353,241 1,754,031 333,188 2,399,342 368,363 2,469,400 390,251 3,950,683 Table VII Other C Total $ 117,965 $ 4,955,221 850,006 5,790,598 90,463 5,677,872 291,916 5,446,895 208,951 5,950,680 405,451 7,024,427 1,999,737 9,220,648 1,108,743 9,568,158 1,298,528 10,579,583 352,510 10,470,518 -172- Table VIII CITY OF COLUMBIA FIGHTS, MINNESOTA Principal City Officials Year Ended December 31, 1991 Name Official Title Mayor and Council Assistant to City Manager Edward M. Carlson Mayor Donald J. Murzyn, Jr. Mayor —Elect Crary L Peterson Councilmember Bruce G. Nawrocki Councilmember Sean T. Clerkin Councilmember Robert W. Ruettimann Councilmember Administration Stuart W. Anderson City Manager Linda Magee Assistant to City Manager William Elrite City Clerk— Treasurer, Finance Director June Johnston Assistant Finance Director Phil Suckerman Liquor Operations Manager Gregg Woods City Attorney Fred Salsbury Public Works Director, City Engineer Leonard Olson Acting Chief of Police Charles Kewatt Chief of Fire Evelyn Nygaard Building Inspector Martin Gavie Plumbing Inspector Dennis Joriman Electrical Inspector Donald Jolly Superintendent of Public Works Mark Casey Recreation Services Director Rebecca Loader Librarian -173- Table IX CITY OF COLUMBIA HEIGHTS, MINNESOTA Miscellaneous Statistical Facts 1991 Date of Incorporation March 14, 1898 Date of Adoption of City Charter July 21, 1921 Form of Government Council-Manager Fiscal Year Begins January 1 Area of City 3.52 Square Miles Miles of Streets and Alleys Trunk Highways 3.0 County 6.2 City Streets 61.8 Alleys 18.9 Miles of Sewers Storm Sewers 33.6 Sanitary Sewers 59.0 Watermain Miles 66.1 Building Permits Issued 1982 503 1983 540 1984 525 1985 508 1986 513 1987 556 1988 535 1989 473 1990 486 1991 484 Estimated Construction Cost for Issued Permits 1982 $13,757,934 1983 7,829,198 1984 12,059,779 1985 4,938,226 1986 13,269,300 1987 4,215,085 1988 8,916,756 1989 5,180,247 1990 5,198,200 1991 4,894,021 -174- Table IX CITY OF COLUMBIA HEIGHTS, MINNESOTA Miscellaneous Statistical Facts (continued) 1991 Fire Protection 13 Number of Stations 1 Number of Employees 1 Full -time 8 Volunteer 26 Police Protection 1 Number of Stations 1 Number of Employees 24 Parks City Parks 13 Playgrounds 11 County Park 1 Schools Senior High 1 Junior High 1 Elementary 3 Parochial Elementary 1 Employees (as of December 31, 199 1) 8,175 Regular 107 Part -Time and Temporary 427 534 Elections Registered Voters —Last City General Election 11,744 Number of Votes Cast —Last City General Election 2,303 Percentage of Registered Voters Voting 19.6% Population 1900 123 1920 2,968 1930 5,613 1940 6,053 1950 8,175 1960 17,533 1970 23,997 1975 (Mid- Decade Census) 23,316 1980 (Census) 20,029 1985 19,540 1990 (Census) 18,910 1991 18,910 -175- CITY OF COLUMBIA HEIGHTS, MINNESOTA Principal Taxpayers December 31, 1991 Source: Anoka County Assessor's Office -176- $ 1,633,854 Table X Percentage of Total 3.4% 2.0 1.4 1.4 1.3 1.3 0.5 0.5 0.5 0.4 12.7% Tax Taxpayer Type of Business Capacity Zaidan Holdings, Inc. Office Building $ 438,533 Kraus - Anderson, Inc. Construction 256,137 Minnegasco Utility 184,605 Malan Construction Company Retail (K -Mart) 182,330 Columbia Park Properties Medical Building 166,211 Medtronic Inc. Medical Manufacturing 161,669 Individual Apartment Building 68,976 Individual Apartment Building 59,135 Cheery Company Apartment Building 58,608 North Coast Partners Shopping Mall 57,650 Source: Anoka County Assessor's Office -176- $ 1,633,854 Table X Percentage of Total 3.4% 2.0 1.4 1.4 1.3 1.3 0.5 0.5 0.5 0.4 12.7% Table XI CITY OF COLUMBIA HEIGHTS, MINNESOTA Statement of Legal Debt Margin December 31, 1991 Market Value of Taxable Property $ 542,920,400 Debt limit (2% of Market Value) (Note A) $ 10,858,408 Amount of Debt Applicable to Debt limit Total Bonded Debt $ 20,239,721 Less (Note B) Tax Increment Bonds 19,154,721 Special Assessment Bonds 1,085,000 Net Debt Applicable to Debt Limit — Legal Debt Margin $ 10,858,408 Note A: M.S.A. Section 475.53 (Limit on Debt) Subdivision 1. Generally, except as otherwise provided in Sections 475.51 to 475.75, "no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 2% of the taxable market value." Note 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. , -177- 1 Table XII CITY OF COLUMBIA HEIGHTS, MINNESOTA Computation of Direct and Overlapping Debt General Obligation Bonds December 31, 1991 -178- Net General Percentage Amount Obligation Applicable Applicable Jurisdiction Debt to City to City Direct City of Columbia Heights $ 20,239,721 100.0% $ 20,239,721 Overlapping Anoka County 56,798,344 7.4 4,203,077 Metropolitan Council 45,795,000 0.5 228,975 Regional Transit District 437,385 0.6 2,624 $ 123,270,450 $ 24,674,397 -178- 1-11-pro:+1u CITY OF COLUMBIA IEIIGHTS, MINNESOTA Property Value, Construction, and Bank Deposits Last Ten Fiscal Years * Amount expressed in thousands. (1) Estimated assessed (1982-1987) and tax capacity (1988 -1991) values from Table I. (2) Source: Federal Banking Directory Note: Deposits listed are for Northeast State Bank, Marquette Bank Minneapolis, Norwest Bank, and First Community Credit Union (3) Figures for First Community Credit Union are not included for 1989. -179- Property Value (1) Construction Fiscal Number Bank Year Real Personal Total of Units Value Deposits (2) 1982 $ 96,391,052 $ 1,344,094 $ 97,735,146 503 $ 13,757,934 $ - 1983 104,783,933 1,333,301 106,117,234 540 7,829,198 - 1984 105,913,390 1,426,869 107,340,259 525 12,059,779 - 1985 108,671,288 1,426,869 110,098,157 508 4,938,226 - 1986 113,721,411 1,500,988 115,222,399 513 13,269,300 - 1987 114,767,361 1,547,299 116,314,660 556 4,215,085 - 1988 116,314,660 1,679,868 117,994,528 535 8,916,756 - 1989 14,532,465 208,985 14,741,450 473 5,180,247 7,018,831 (3) 1990 10,022,891 212,505 10,235,396 486 5,198,200 10,311,528 1991 9,901,542 210,051 10,111,593 484 4,894,021 Not Available * Amount expressed in thousands. (1) Estimated assessed (1982-1987) and tax capacity (1988 -1991) values from Table I. (2) Source: Federal Banking Directory Note: Deposits listed are for Northeast State Bank, Marquette Bank Minneapolis, Norwest Bank, and First Community Credit Union (3) Figures for First Community Credit Union are not included for 1989. -179- 1 MALLOY PRINCIPALS KARNOWSKI ffmRADOSEVICH KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA &CO.,P.A. PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S REPORT 1 ON SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE City Council and Residents City of Columbia Heights Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of the City of Columbia Heights. The information in this schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 1 March 13, 1992 _ 410 PARK NATIONAL BANK BUILDING -180- 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612 -545 -0424 TELEFAX: 612- 545 -0569 CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Federal Financial Assistance Year Ended December 31, 1991 Federal Grantor/Pas�Through Grantor/Program Title City of Columbia Heights Grants Federal Emergency Management Agency Passed Through Anoka County Emergency Management Assistant Grant Housing and Redevelopment Authority of Columbia Heights Grants U.S. Department of Housing and Urban Development (HUD) Direct Low Income Housing Assistance Program Passed Through Metropolitan Council Section 8 Housing Assistance Payments Program for Administrative Services Total CT-DA Number 14.156 Passed Through Anoka County Community Development Block Grant Program Community Development Block Grant (CDBG) Passed Through Minnesota Housing Finance Agency Rental Rehabilitation Program Total federal financial assistance Current Year Activity Revenue Federal Federal CFDA Grant Number Amount Federal Expenditures 83.503 $ 4,178 $ 3,697 $ 3,697 14.156 2,500 2,500 2,500 14.156 40,339 40,339 42,839 14.219 349,418 90,176 14.230 1,225 1,225 $ 137,937 40,339 42,839 90,176 1,225 $ 137,937 Note 1: The federal grant amount includes the current year entitlement plus any available carryovers from the prior year. Current year entitlements may extend beyond a twelve -month period. -181- MALLOY KARNOWSKI RADOSEVICH &CD.,P.A. 1 INDEPENDENT AUDITOR'S REPORT ON THE 1 INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Residents City of Columbia Heights Columbia Heights, Minnesota PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. In planning and performing our audit of the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1991, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Columbia Heights, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with ' generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 1 (continued) ' _ INE 410 PARK NATIONAL BANK BUILDING -182- MIX 41 =06em 5353 WAYZ A TA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 ' TELEFAX: 612- 545 -0569 For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: cash receipts /revenue, cash disbursements /expenditures, payroll, external financial reporting, and grant administration. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant ' deficiencies in the design or operation of the internal control structure that, in our judgement, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. ' Because of the limited size of the office staff of the Housing and Redevelopment Authority, the Housing and Redevelopment Authority has limited segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that the Housing and Redevelopment Authority is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this condition. A material weakness is a reportable condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all ' reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Columbia Heights, Minnesota's general purpose financial statements for the year ended December 31, 1991, and this report does not affect our reports thereon dated March 13, 1992. In our letter to the City Council, issued in connection with our audit of the City's general purpose financial statements, we have separately communicated our observations and recommendations regarding other matters. ' This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. March 13, 1992 -183- ' MALLOY KARNOWSKI PRINCIPALS RADOSEVICH KENNETH W. , CPA THOMAS A. KARNOWARNOWSKI, CPA $CO.,P.A. PAUL A. RADOSEVICH, CPA ' INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING IFEDERAL FINANCIAL ASSISTANCE PROGRAMS City Council and Residents City of Columbia Heights Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1 1992. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1991, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statements and not to provide assurance on the internal control structure. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated March 13, 1992. I(continued) -184- _ 410 PARK NATIONAL BANK BUILDING III 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 The management of the City of Columbia Heights, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may ' become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. ' For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: ' General requirements Political activity Davis -Bacon Act ° Civil rights Cash management ° Federal financial reports ° Allowable costs /cost principles ° Drug -free workplace Administrative requirements ' Specific requirements ° Types of services ° Eligibility Reporting 1 ° Cost allocation Special requirements, if any Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1991, the City had no major federal financial assistance programs and expended 65% of its total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant (CDBG). (continued) -185- ' We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to the aforementioned nonmajor program. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgement, could adversely affect the City's ability to administer federal financial assistance programs in accordance with applicable laws and regulations. Because of the limited size of the office staff of the Housing and Redevelopment Authority, the Housing and Redevelopment Authority has limited segregation of duties. A good system of internal accounting control contemplates an adequate segregation of duties so that no one individual handles a transaction from inception to completion. While we recognize that the Housing and Redevelopment Authority is not large enough to permit an adequate segregation of duties in all respects, it is important that you be aware of this condition. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. ■ Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is a material weakness. This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Columbia Heights, Minnesota's general purpose financial statements and of its compliance with requirements applicable to its federal financial assistance programs for the year ended December 31, 1991, and this report does not affect our reports thereon dated March 13, 1992. In our letter to the City Council issued in connection with our audit of the City's general purpose financial statements, we have separately communicated our observations and recommendations regarding other matters. ' This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. 0 Z 7 , /0// March 13, 1992 1 -186- ' MALLOY KARNOWSKI ZMRADOSEVICH &CO.,P.A. INDEPENDENT AUDITOR'S COMPLIANCE REPORT BASED ON AN AUDIT OF THE GENERAL PURPOSE IFINANCIAL STATEMENTS PERFORMED IN PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council and Residents City of Columbia Heights Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Columbia Heights is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the ' City's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, the City of Columbia Heights complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. c March 13, 1992 14��: 1 410 PARK NATIONAL BANK BUILDING -187- 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 MALLOY KARIVOWSKI PRINCIPALS MMRADOSEVICH KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA &CO.,P.A. PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS ' City Council and Residents City of Columbia Heights Columbia Heights, Minnesota j We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, Ifor the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. We have applied procedures to test the City of Columbia Heights' compliance with the following requirements applicable to each of its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended December 31, 1991: political activity, Davis -Bacon Act, civil rights, cash management, federal financial reports, allowable costs /cost principles, Drug -Free Workplace Act, and administrative requirements. 1 Our procedures were limited to the applicable procedures described in the Office of Management and Budget's, Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City of Columbia Heights' compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Columbia Heights had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. ;�V ", /1� - March 13, 1992 410 PARK NATIONAL BANK BUILDING -188- 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612 -545 -0424 TELEFAX: 612- 545 -0569 i INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR RELATED FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS ' City Council and Residents City of Columbia Heights Columbia Heights, Minnesota PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. In connection with our audit of the general purpose financial statements of the City of Columbia Heights, and with our study and evaluation of the internal control systems used to administer federal financial assistance programs, as required by OMB Circular A -128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1991. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed, eligibility, reporting, cost allocation, special tests, and provisions and claims for advances and reimbursements that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. March 13, 1992 -189- 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 MALLOY KARNOWSKI ffMRAD0Sr=vicF4 &.CO.,P.A. INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR RELATED FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS ' City Council and Residents City of Columbia Heights Columbia Heights, Minnesota PRINCIPALS KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA PAUL A. RADOSEVICH, CPA We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. In connection with our audit of the general purpose financial statements of the City of Columbia Heights, and with our study and evaluation of the internal control systems used to administer federal financial assistance programs, as required by OMB Circular A -128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1991. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed, eligibility, reporting, cost allocation, special tests, and provisions and claims for advances and reimbursements that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the City's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, management, the cognizant audit agency, and other federal agencies. However, this report is a matter of public record and its distribution is not limited. March 13, 1992 -189- 410 PARK NATIONAL BANK BUILDING 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 ' MALLOY KARNOWSKI PRINCIPALS MRAOOSEVICH KENNETH W. MALLOY, CPA THOMAS A. KARNOWSKI, CPA &CO.,P.A. PAUL A. RADOSEVICH, CPA INDEPENDENT AUDITOR'S IREPORT ON COMPLIANCE WITH MINNESOTA STATE LAWS ' AND REGULATIONS City Council and Residents ' City of Columbia Heights Columbia Heights, Minnesota We have audited the general purpose financial statements of the City of Columbia Heights, Minnesota, as of and for the year ended December 31, 1991, and have issued our report thereon dated March 13, 1992. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government promulgated by the Legal Compliance Task Force pursuant to Minnesota Statutes Section 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. ' The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City of Columbia Heights, Minnesota, ' complied with the material terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. ! This report is intended for the information of the City Council, management, and the cognizant audit agency. However, this report is a matter of public record and its distribution is not limited. March 13, 1992 410 PARK NATIONAL BANK BUILDING -190- 5353 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55416 TELEPHONE: 612- 545 -0424 TELEFAX: 612- 545 -0569 CITY OF COLUMBIA HEIGHTS, MINNESOTA Schedule of Findings Year Ended December 31, 1991 Program /Law Minnesota Statutes Section 471.38, Subdivision 2 Resolution of Prior Year Findin Minnesota Statutes Section 471.38, Subdivision 2 requires that each declaration for payment be signed to the effect that such account, claim, or demand is just and correct and that no part of it has been paid. During 1991, the Housing and Redevelopment Authority began to use this declaration. -191-